HomeMy WebLinkAboutOrdinance - 2005-O0016 - Adding Article XIX Of Chapter 2 With Regard To Creation,Duties,Terms/Water/Board - 01/27/2005First Reading
January 27, 2005
Item No. 48
ORDINANCE NO. 2005-00016
Has not been broueht to
Council for 2•d Readin2.
AN ORDINANCE ADDING ARTICLE XIX OF CHAPTER 2 OF THE
CODE OF ORDINANCES WITH REGARD TO THE CREATION, DUTIES,
TERMS AND RESPONSIBILITIES OF THE WATER UTILITIES BOARD;
AMENDING ARTICLE I, SECTION 2-3 OF CHAPTER 2 OF THE CODE OF
ORDINANCES TO CONFORM TO CHANGES MADE TO THE DUTIES AND
RESPONSIBILITIES OF THE DIRECTOR OF WATER UTILITIES;
RESERVING SPECIFIC POWERS TO THE CITY COUNCIL; PROVIDING A
SAVINGS CLAUSE AND PROVIDING FOR PUBLICATION.
WHEREAS, Subchapter H of Chapter 402 of the Local Government Code
authorizes a home-rule city that owns a water, wastewater, storm water, or drainage
utility system by ordinance to create a Board of Trustees to manage and control the
utility systems;
WHEREAS, the Lubbock Water Advisory Commission currently provided for
by Resolution No. 2003-R0285 of July 24, 2003 as amended by Resolution No. 2003-
R0354 of August 20, 2003 has nine (9) members and is an advisory only board
responsible for providing advice on:
a. acquisition and utilization of water resources;
b. conservation, reuse of water resources, and related educational
programs;
c. operating budgets;
d. facilities and infrastructure needs, replacement, and planning;
e. major capital expenditures and the priorities of the completion of
water related projects;
f. regional water needs and requests from other entities for water
and wastewater services;
g. water and wastewater rates and fees;
h. water and wastewater rate structures;
1. long range water and wastewater planning efforts;
J. water supply, pumping capacity, and demand projections;
k. potential impact of state and federal water and wastewater
regulations and mandates;
I. bonded indebtedness;
m. operating efficiencies;
n. other water and wastewater related matters, as designated by the
City Council.
WHEREAS, the Mayor)s Commission on Water Utilities met on a number of
occasions to review and evaluate various issues related to the governance of the water,
wastewater, storm water and drainage utilities and reported their findings to the City
Council at a special council meeting on January 18, 2005;
WHEREAS, the Mayor's Commission on Water Utilities recommended that the
Code of Ordinances of the City of Lubbock be amended to establish a new Water
Utilities Board, such recommendation being the basis for the proposed ordinance
contained herein; and
WHEREAS, the City Council of the City of Lubbock deems that the
recommendations of the Mayor's Commission on Water Utilities are well fotmded and
that it would be in the best interest of the City of Lubbock, and its water utilities, to
improve the efficiency and effectiveness of the utilities by accepting the
recommendation of the Mayor's Commission on Water Utilities and amending the Code
of Ordinances of the City of Lubbock in such manner;
WHEREAS, the City Council of the City of Lubbock created the position of City
Treasurer by action of Ordinance No. 2002-00123 of November 14, 2002, which
position is currently unfilled and unfunded and to which the City Council desires to
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assign the duties of Director of Water Utilities and further delegate this position's
oversight to the Water Utilities Board; NOW THEREFORE:
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK
SECTION 1: THAT Sections 2-502 through 2-508 of the Code of Ordinances,
City of Lubbock, Texas are hereby added to Article XIX of Chapter 2 to read as
follows:
Sec. 2-502. Definitions.
a) Water Utilities are defined as those functional areas which include
the City's supply of fresh water and handling of wastewater.
b) Fresh Water is defined as the City's supply of water which may be
used for drinking, household, commercial, industrial and irrigation
purposes. Fresh water may include water supplied from underground
wells, reservoirs, lakes, rivers, streams, treated effluent, and storm
water runoff which includes water in playas. The City's fresh water
system includes, but is not limited to, pipelines, treatment facilities,
distribution facilities, storage facilities, pumping facilities, well
fields, Canadian River Municipal Water Authority (CRMW A), Lake
Alan Henry, and the Brazos River Authority.
c) Wastewater is defined as water mixed with waste or effluent. Waste
water may include effluent from households, commercial enterprises,
industries, agriculture, and runoff. The City's wastewater system
includes, but is not limited to, the City's sewer system, pumping
facilities, treatment facilities and land application sites.
d) Storm Water. For purposes of this ordinance, the City's storm
sewer infracture, including planning, engineering, construction,
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maintenance, management, financing and other related functions is
not included in Water Utilities. Rather, this fun~tion will remain
with the City Manager's organization. Collected storm water shall
be fresh water and subject to the tenns of this ordinance.
Sec. 2-503. Water Utilities Board, Purpose.
The City Council hereby establishes and creates a board to be known as the
Water Utilities Board. The Board shall be responsible for the governance, management
and operations of the City's fresh water and wastewater utilities. The City's Water
Utilities Board shall have as its primary purpose the provision of dependable and
reliable water and wastewater service at reasonable rates to the citizens of Lubbock
while being financially self-sustaining and compliant with all laws, rules and
regulations.
Sec. 2-504. Members, Qualifications.
a) The Board shall consist of eleven members, one of whom shall be the
Mayor or his designee, one of whom shall be the City Manager or his
designee, and nine members shall be appointed by the City Council.
Any designee of the City Manager must be an officer or employee of
the City. The Board members shall be considered officers of the City.
The City Council shall consider extensive business and/or financial
and/or water related experience as the primary qualification for
serving on the Board.
b) The initial terms of the City Council appointed Board members shall
be as follows: five Board members shall serve an initial term of two
years and four Board members shall serve an initial term of one year.
The length of terms of the initial Board members shall be determined
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by drawing lots at their first meeting. Following the initial term
described above, the term of office for each Board member shall be
two years. A Board member may be re-appointed by the City
Council, but no board member may serve more than three successive
terms on the Board inclusive of the initial term. The term of the
Mayor or his designee shall be the Mayor's term of office. The City
Manager or the City Manager's designee shall serve at the pleasure of
the City Manager.
c) A Nominating Committee comprised of three members of the Board
shall be elected by the Board for the purpose of nominating Board
members after the initial appointments. The Nominating Committee
members shall serve during their tenns of office on the Board. The
Nominating Committee shall be responsible for nominating new
Board members and Board members eligible for re-appointment.
Nominees shall be sent to the Board for approval and
recommendation to the City Council.
d) A Compensation Committee comprised of three members of the
Board shall be elected by the Board for the purpose of recommending
the initial salary and any annual adjustments thereto of the Director of
Water Utilities. The Compensation Committee members shall serve
during their terms of office on the Board. Recommendations
regarding salary shall be sent to the Board for approval.
e) The Board members shall serve without compensation. The Board
may reimburse board members for reasonable and budgeted expenses
incurred in performing their duties as board members.
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f) The conduct of the Board members shall be directed by the laws of
the State of Texas regulating conflicts of interest of officers of
municipalities and the City's Charter.
Sec. 2-505. Powers/ Authority Reserved to the City Council.
The following powers, as they relate to the City's Water Utilities, are for the sole
and exclusive use and authority of the City Council:
a) Establishing, changing, altering or otherwise setting the water and
wastewater rates of the City's utilities;
b) Approving the budget of the City's utilities;
c) Setting fees, water rates and regulations of any other property rights
of the City at Lake Alan Henry;
d) Exercising powers of eminent domain for the benefit of the City's
utilities;
e) Issuing bonds or otherwise creating any indebtedness in the name of
the City for the benefit of the City's utilities that is secured by the
general tax revenue of the City, the net revenue of the City's utilities
or the pledging of the assets of the City's utilities; and
f) Requiring the City's utilities to pay the equivalent of a franchise fee
and/or a payment in lieu of taxes or any other fee or payment deemed
appropriate by the City Council.
Sec. 2-506. Authority, Duties, Responsibility of the Board.
The following powers, as they relate to the City's Water Utilities, are for the sole
and exclusive use and authority of the City's Water Utilities Board:
a) The Board shall approve an annual budget and appropriate rate
schedule for the City's utilities, submit the budget and rate schedule to
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the City Council for approval, and be responsible for the proper
implementation of each following adoption. The Board shall
coordinate and cooperate with the City budgeting process. The Board
may) as required from time to time, submit to the City Council for its
approval amendments to the budget and/or rate schedule.
b) The Board shall authorize and oversee an annual fmancial audit of the
City's water utilities system and shall report any and all fmdings of
such audit to the City Council. The Board will appoint the City of
Lubbock's outside audit finn to conduct the annual audit.
c) To the extent authorized by law and subject to the City's Charter and
Code of Ordinances, the Board shall have all authority necessary to
govern) manage, administer and operate the City's utility including
the authority to contract for accounting, financial, human resource,
purchasing, legal and other services separate and apart from those
services currently being provided by the City of Lubbock. However,
prior to contracting for any services, the Board must obtain the
express approval of the City Council. If the Board contracts for
legal services separate and apart from the City Attorney's office, the
legal counsel for the Board shall also report to and be responsible to
the City Council of the City of Lubbock. If the Board contracts for
financial services, the Chief Financial Officer for the City shall
provide oversight of all financial services.
Sec. 2-507. Director of Water Utilities.
The Director of Water Utilities shall be the chief executive officer of the
City's Water Utilities and shall report to the Board for the proper
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administration, management and operation of the City's utility as directed
and authorized by the Board, the City Charter and/or the City's
ordinances and resolutions. The Director shall be responsible for
preparing the annual budget and fee schedule for the City's utility and
shall present the budget and fee schedule to the Board for their approval
prior to the Board submitting such budget and fee schedule to the City
Council. The Board shall coordinate and cooperate with the City's
budgeting process.
Sec. 2-508. Disbursement of Net Revenues.
a) The City shall not require the City's Water Utilities to reimburse any
other fund of the City for monies or funds charged or assessed to the
City's Water Utilities other than those amounts approved by City
Council in its operating and capital budgets adopted prior to May 1,
2005. All charges and amounts paid or reimbursed to the City shall
be governed by the budget and approved by City Council.
b) The annual budges and setting of rates shall be developed such that
the following amounts are funded in the following priority: (1) Gross
Revenues of the Water Utilities shall be used to pay Operating
Expenses (including the City's cost allocation charges) as a first
charge against Gross Revenues; (2) Gross Revenues Net of Operating
Expenses (Net Operating Revenues) shall next be used to pay
outstanding debt service consistent with all outstanding bond
covenants; (3) a fee equivalent to a franchise fee and/or payment in
lieu of taxes and/or other payment deemed appropriate by the City
Council; and (4) a combined rate and operating reserve of equivalent
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to 25% of Gross Revenues or a larger amount defined in Water
Utilities Revenue bond covenants shall be maintained.
c) This section shall be included in and become a part of each annual
budget ordinance of the City of Lubbock.
SECTION 2: THAT Article I, Chapter 2, Section 2-3 of the Code of
Ordinances, City of Lubbock, Texas, is hereby amended by deleting the second sentence
of (a) and substituting the following:
HThe duties of the City Treasurer appointed by the City Council shall
include duties as Director of the City's Water Utilities."
The remainder of Section 2-3 not specifically amended herein shall remain in full
force and effect.
SECTION 3: THAT the City Council does hereby assign the position described
in Section 2 above to the Water Utilities Board, which position will report to the Board.
Notwithstanding this assigrunent, the Council acknowledges the authority of the City
Manager, pursuant to Chapter 1, Article IX, Section 10, to recommend the appointment
to this position.
SECTION 4: THAT following the second reading and final adoption of this
ordinance the City Council shall appoint nine citizens to serve the initial terms on this
Utilities Board in accordance with the terms and conditions outlined herein.
SECTION 5: THAT the City Council finds and declares that sufficient written
notice of the date, hour, place and subject of this meeting of the Council was posted at a
designated place convenient to the public at the City Hall for the time required by law
preceding this meeting, that such place of posting was readily accessible at all times to
the general public, and that all of the foregoing was done as required by law at all times
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during which this Ordinance and the subject matter thereof has been discussed,
considered and formally acted upon.
The City Council further ratifies, approves and confirms such written notice and
the contents of posting thereof.
SECTION 6: THAT should any paragraph, sentence, clause, phrase, or word of
this Ordinance be declared unconstitutional or invalid for any reason, the remainder of
this Ordinance shall not be affected thereby.
SECTION 7: THAT the City Secretary is hereby authorized and directed to
cause publication of the descriptive caption of this Ordinance as an alternative method
of publication provided by law.
AND IT IS SO ORDERED
Passed by the City Council on the first reading on this 27th day of January, 2005.
Passed by the City Council on the second reading on this
_____ , 2005.
MARC McDOUGAL, MAYOR
ATTEST:
Rebecca Garza, City Secretary
APPROVED AS TO SUBSTANCE:
Lou Fox, City Manager
APPROVED AS TO FORM:
Anita E. Burgess, City Attorney
L:/ccdocs!WaterUtilityBoardOrd.clean
Page 10 of 11
day of
January 20, 2005
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CITY MANAGER,
LEE ANN DUMBAULD
ADVISED TO
VOID
WLY 17,2008
Linda Hart-Ordinance #200£-00016
From:
To:
Date:
Becky Garza
Linda Hart
7/17/2008 10:36:37 AM
Subject: Ordinance #200 ·00016
CC: Lee Ann Dumbauld
Linda,
RE: Ord. #2005-00016
First Reading 1/527/05
Creation Duties, Water Utilities Board, Director of Water Utilities
Page 1 of 1
In regard to this ordinance (had first reading January 2005, but appears to not be coming back for a second reading), lee
Ann advised that we can void it.
Thanks,
bg
Becky Garza, TRMC
City Secretary
Oty of Lubbock
1625 13th Street
Lubbock TX 79401
PH# 806-775-2025
Fax: 806-775-3983
bgarza@mail.ci.lubbock.tx.us
file://C:\Documents and Settings\ 17273\Local Settings\Temp\GW} 0000 I.HTM 7/17/2008
Linda Hart-Ordinance #2005-00016
From:
To:
Date:
Becky Garza
Linda Hart
2/9/2007 3:34PM
Subject: Ordinance #200 -00015
Linda,
RE: Ordinance #2005-00016
First Reading 1/27/05
Creation of a Water Utilities Board
Note: Continue on "hold" status
Page 1 ofl
I talked to Lee A. Dumbauld today, 2/9/07 in regard to this ordinance that had a first reading in January of
2005, but has not come bad< for a second reading.
I told her that T. Combs has discussed this with legal (sometime last fall) and that Legal said they don't want to
get involved In bringing this forward. I asked if we can consider it void.
Lee A. said that there's been talk regarding this issue lately, and she asked that we continue holding it for
now.
Thanks,
bg
Becky Garza, TRMC
City Secretary
City of Lubbock
1625 13th Street
lubbock TX 79401
PH# 806-775-2025
Fax: 806-775-3983
bgarza@ma il.ci .lubbock. tx. us
"Serve with Humility, Lead with Passion, Commit to Excellence"
file://C:\Documents and Settings\ 17273\Local Settings\Temp\GW} 0000 l.HTM 219/2007
I Linda Hart~ AgendaComments.WaterUtilities.doc
CITY OF LUBBOCK
AGENDA ITEM SUMMARY
ITEM#SUMMARY: #48
An Ordinance adding Article XIX of Chapter 2 of the Code of Ordinances
with regard to the creation, duties, terms and responsibilities of the Water
Utilities Board; amending Article I, Section 2~3 of Chapter 2 of the Code of
Ordinances to conform to changes made to the duties and responsibilities of
the Director of Water Utilities; reserving specific powers to the City Council;
providing a savings clause and providing for publication.
BACKGROUND DISCUSSION:
The Lubbock Water Advisory Commission currently advises the City
Council on various aspects of water and wastewater, planning, use,
operations, infrastructure needs, and other matters set forth in Resolution
No. 2003-R0285 of July 24, 2003, as amended by Resolution No. 2003-R0354
of August 20, 2003.
In order to consider whether the current governance and advisory
structure is the most efficient for the City of Lubbock, the Mayor
established the Mayor's Commission on Water Utilities which met on a
number of occasions to review and evaluate various issues related to the
governance of the water, wastewater, storm water and drainage utilities.
The report of this Commission was received by the City Council at a
special council meeting on January 18, 2005. The Mayor's Commission on
Water Utilities recommended that the Code of Ordinances of the City of
Lubbock be amended to establish a new Water Utilities Board with
authority to oversee the City's Water Utilities. In furtherance of the
recommendation, the City Council directed the City staff, under the
direction of Mayor Pro Tem, Tom Martin, and Councilman, Jim Gilbreath,
to prepare an ordinance establishing a Water Utilities Board.
The ordinance creates the Water Utilities Board and establishes the duties,
terms and responsibilities of the board. It also reserves certain authority
to the City Council. It assigns to the position of City Treasurer the duties
of Director of Water Utilities and assigns the oversight of the position to
the Water Utilities Board. It sets requirements for the disbursement of
water utilities revenues.
Page 1 I
I Linda Hart-AgendaComments.WaterUtilities.doc
The Water Utilities Board is created by the ordinance under the provisions of
Subchapter H of Chapter 402 of the Local Government Code which authorizes a
home-rule city that owns a water, wastewater, storm water, or drainage utility
system to create a governance board to manage and control the utility systems.
A prerequisite to the use of this provision of the law is that the city has outstand
debt secured solely by a pledge of the net revenue of the utility system or that
the city issues debt that is secured by the net revenue of the utility. Since the
City of Lubbock currently has only Certificates of Obligation or Government
Obligations on its water and wastewater systems, the City must first issue revenue
debt on the water or wastewater system prior to the second reading of this
ordinance.
FISCAL IMPACT:
Neutral.
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