10-Water & Sewer FundCITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date:
Otiginating Department:
Presented By:
Agenda Item No.:
06/02/09
Council Date:
Finance
Gene Anderson
10.
06/08/09
RECOMMENDED MOTION:
Not an action item - first reading.
POLICY ISSUE(S):
Fiscal Management
Contracts with several large industrial customers require a cost of service study to be conducted each
year. Rates for these industries are determined by the study and go into effect automatically per the
contracts. Residential and commercial rates are also examined in the study and are given to the City
Council for approval. The study points out that the City needs to continue with Council's phased plan to
replenish the Water & Sewer Fund operating reserves which are about $620,000 below the 45 day
minimum reserve and $1,013,400 below the more comfortable 60 day reserve. Adequate reserves are
critical for the City since 5 customers provide 45% of the utility's rate revenue. A loss or decline in
consumption of one these customers could result in a significant financial strain for the City. Also, the
sewer portion of the fund is not currently self-sufficient and additional funds are also needed for capital
improvements. The study recommends a 1% increase in residential and commercial water rates and a
4% increase in residential and commercial wastewater rates. A copy of the study accompanies the
packet, and Darrell Cline with J. Stowe & Co. will be at the meeting to review the study and answer
questions.
BOARD/ COMMISSION RECOMMENDATION:
NONE
EXHIBITS:
Rate Study and ordinance.
ACTION:
BUDGET INFO:
❑ Financial Report ❑ Minute Order
Expense
$25,000 estimated
❑ Department Report ❑ Resolution
Budgeted Amt.
$25,000
❑ Presentation ~ Ordinance
y'I'D Actual
$22,025
~ Public Hearing ❑ Other
Acct. Name
Consultants
Acct. Number
10-0318-81-00
FiscAL NoTES:
None
REVIEWED AND APPROVED BY:
N Administration N City Clerk ❑ Community Development ❑ EMS/IT n Finance ❑ Fire
❑ Municipal Court E Legal ❑ Libraty ❑ Police ❑ Eng./Public Works ❑ Utilities
City of Paris a U0002 J` Revised 2/04/08
DRAFT
attorney\ordwork\current\Water & Sewer Rate Ord 2009
ORDINANCE N0.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
AMENDING SECTION 34-22(b), WATER RATES, AND SECTION 34-23(a),
(b) AND (c), SEWER RATES, TO REFLECT CHANGES RECOMMENDED BY
THE 2009 COST OF SERVICES RATE STUDY; PROVIDING A REPEALER
CLAUSE, A SEVERABILITY CLAUSE, A SAVINGS CLAUSE, A PENALTY
CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on the 8th day of June, 2009, the City Council of the City of Paris, Texas,
was presented with the annual Cost of Service Study for Water and Sewer Services
prepared by R. W. Beck, Inc., with certain findings and recommendations for proposed
water and sewer rate increases; and,
WHEREAS, the Cost of Service Study shows a need to increase City water rates one
percent (1%) and the need to increase the sanitary sewer rate four percent (4%) for City
water and sewer users; and,
WHEREAS, the City Council has determined that it is in the best interest of the City
of Paris and its citizens to implement the proposed rates for water and sewer services by
amending portions of Chapter 34, Water, Sewer, and Sewage Disposal, of the City Code of
Ordinances.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS:
Section 1. That the findings set out in the preamble to this ordinance are hereby
in all things approved.
Section 2. That Subsection (b) of Section 34-22 of the Code of Ordinances of the
City of Paris, Texas, be, and the same is hereby amended to read in its entirery as follows:
"Sec. 34-22. Water rates.
(a) Charges for water furnished by the City under contract shall be as stated in the
contract.
(b) Charges for water furnished by the City, measured in cubic feet, are
established as follows: based upon customer class and meter size and
which incorporates a base monthly cost which includes the cost for the first
increment of water, and a cost per one hundred (100) cubic feet or portion of
one hundred (100) cubic feet used above the first increment:
Page 1 of 4
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RESIDENTIAL CLASS
METER SIZE
(lnches)
BASE COST FOR FIRST
INCREMENT
(In Cubic Feet)
SERVICE IN
EXCESS OF BASE
(For Each Additional 100 Cubic Feet)
3/4 or less
1 and Larger
METER SIZE
(/nches)
3/4 or less
1 through 2
3
4
6
8 and larger
$ 8.90 for first 200
$ 43.39 for first 1,000
$ 3.01
$ 3.01
COMMERCIAL/INDUSTRIAL CLASS
BASE COST FOR FIRST
INCREMENT
(!n Cubic Feet)
SERVICE IN
EXCESS OF BASE
(For Each Additiona1100 Cubic Feet)
$ 10.85 for first 200
$ 43.39 for first 1,000
$ 155.76 for first 3,000
$2,559.00 for first 100,000
$3,838.00 for first 150,000
$5,118.00 for first 200,000
$ 3.01
$ 2.46
$ 2.46
$ 2.46
$ 2.46
$ 2.46"
Section 3. That Subsections (a), (b) and (c) of Section 34-23 of the Code of
Ordinances of the City of Paris, Texas, be, and the same are hereby amended to read in its
entirety as follows:
"Sec. 34-23. Sewer rates - For customers using City water.
(a) Charges for sewer service furnished by the City to residential, commercial
and industrial customers shall be based upon customer class and meter size,
incorporating a base monthly cost for the first increment of usage and a cost
for each additional one hundred (100) cubic feet or portion of one hundred
(100) cubic feet above the first increment, as follows:
RESIDENTIAL CLASS
BASE COST FOR FIRST
METER SIZE INCREMENT
(Inches) ln Cubic Feet)
3/4 or less $ 10.22 for first 200
1 and Larger $47.69 for first 1000
Page 2 of 4
SERVICE IN
EXCESS OF BASE
(For Each Additional 100 Cubic Feet)
$ 4.14
$ 4.14
~
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COMMERCIAL/INDUSTRIAL CLASS
METER SIZE
(Ittches)
BASE COST FOR FIRST
INCREMENT
(/n Cubic Feet)
SERVICE IN
EXCESS OF BASE
(For Each Additional 100 Cubic Feet)
3/4 or less
1 through 2
Larger than 2
$ 13.62 for first 200
$ 47.69 for first 1000
$ 96.48 for first 2,000
$ 4.31
$ 4.31
$ 4.31
(b) Monthly residential customers' wastewater volume for purposes of
assessing the sewer charge shall be based upon one hundred percent (100%)
of the actual metered potable water consumption averaged for the preceding
November, January, and February consumption, which shall be known as the
"flat winter average." Customers that do not have recorded water usage for
each of the winter average months will have their winter average calculated
based on the residential class average of 600 cubic feet.
Monthly commercial and industrial customers' wastewater volume shall
be based upon one hundred (100) percent of the actual metered potable
water consumption, except those customers whose wastewater is metered,
and their volume shall be based upon one hundred (100) percent of the
metered wastewater. The former shall be billed for one hundred (100)
percent of the metered potable water and the latter shall be billed for one
hundred (100) percent of the metered wastewater.
(c) Users desiring to discharge sewage into the City's sewerage system, the
strength of which sewage exceeds two hundred fifty (250) parts per million
biochemical oxygen demand (BOD), two hundred fifty (250) parts per million
of total suspended solids, (TSS), or thirty (30) parts per million of ammonia
(NHs), and which is acceptable under article III of this chapter, may do so
upon written permission of the city and by paying a monthly treatment
charge in the amount of ninety-five cents ($0.95) per pound of biochemical
oxygen demand (BOD) in excess of the allowable biochemical oxygen
demand (BOD); fifty-one cents ($0.51) per pound of total suspended solids
(TSS) in excess of the allowable total suspended solids (TSS); and forty-four
cents ($0.44) per pound of ammonia (NHs ) in excess of the allowable
ammonia strength. The city shall make the necessary tests of the user's
sewage strength to determine this charge. The charge prescribed by this
subsection shall be in addition to the charges prescribed in subsection (a)
hereof."
Section 4. That the water and sewer rates established in Sections 2 and 3 above
shall be reflected in water and sewer billings beginning July 1, 2009.
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Section 5. All provisions of the ordinances of the City of Paris, Texas in conflict with the
provisions of this ordinance are hereby repealed, and all other provisions of the ordinances of
the City of Paris not in conflict with the provisions of this ordinance shall remain in full force
and effect.
Section 6. The repeal of any ordinance or part of ordinances affected by the
enactment of this ordinance shall not be construed as abandoning any action now pending
under or by virtue of such ordinance or as discontinuing, abating, modifying, or altering any
penalty accruing or to accrue, or as affecting any rights of the municipality under any section or
provisions of any ordinance at the time of passage of this ordinance.
Section 7. It is the intention of the City Council of the City of Paris that this
ordinance, and every provision hereof, shall be considered severable, and the invalidity or
partial invalidity of any section, clause, or provisions of this ordinance shall not affect the
validity of any other portion of this ordinance.
Section 8. Any person violating any of the provisions of this ordinance shall be
guilty of a Misdemeanor and, upon conviction, shall be fined in accordance with Section 1-6
of the Code of Ordinances and each and every day's continuance of any violation of the
above-enumerated section(s) shall constitute and be deemed a separate offense.
Section 9. Introduced and read on first reading on June 8, 2009, at a regular
meeting of the City Council of the City of Paris and read and passed on second reading on
June 22, 2009, at a regular meeting of the City Council of the City of Paris; the same being
two (2) separate regular meetings of the City Council of the City of Paris.
Section 10. That this ordinance shall become effective from and after its passage of
the second reading and publication as required by law.
PASSED AND ADOPTED on second and final reading this 22nd day of June, 2009.
Jesse James Freelen, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Kent McIlyar, City Attorney
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