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HomeMy WebLinkAboutOrdinance - 2008-O0073 - Amending Chapt. 28; Wholesale Water Service To Areas Outside City Boundaries - 08/12/2008First Reading August 12, 2008 Item No. 6.3 Ordinance No. 2008-o0073 Second Reading August 19, 2008 Item lilo. 2.3 AN ORDINANCE AMENDING CHAPTER 28 OF THE CODE OF ORDINANCES OF THE CITY OF LUBBOCK, TEXAS, WITH REGARD TO WHOLESALE WATER SERVICE TO SPECIFIED AREAS OUTSIDE OF THE CITY BOUNDARIES AND CONDITIONS AND RATES RELATED TO SAME; PROVIDING A SAVINGS CLAUSE, AND PROVIDING FOR PUBLICATION. WHEREAS, the City Council of the City of Lubbock deems it in the best interest of the health, safety and welfare of the citizens of Lubbock to make the following amendments to Chapter 28 of the Code of Ordinances of the City of Lubbock, Texas, with regard to wholesale water service to specified areas outside of the City boundaries and conditions and rates related to same; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT Section 28-59 of the Code of Ordinances, City of Lubbock, Texas, is hereby amended to read as follows: Section 28-59. Wholesale water service to specified areas outside city; conditions, rates. (a) The City Council reaffirms its prior policy adopted March 8, 1984, to prohibit the sale of water to individuals, businesses, agencies or organizations that lie outside the corporate limits of the City of Lubbock. (b) In order to compromise and settle protests and threatened litigation regarding the disposal of treated municipal effluent by city, the City Council authorizes the city's water department to extend the city's water distribution facilities outside the corporate limits and to offer to sell water (i) to the Town of Ransom Canyon for resale (a) within its corporate limits as of January 1, 1988; (b) in any area included within the authorized service area of its Certificate of Convenience and Necessity, as issued by the Texas Commission on Envirorunental Quality, or successor agency; and (c) to the Roosevelt Independent School District; and (ii) to Lubbock County Water Control and Improvement District No. 1 for resale within the corporate limits of the Village of Buffalo Springs as those limits existed as of January 1, 1988, provided the offer to sell water and the sale of water shall be subject to the conditions and limitations specified in the provisions of this section, the applicable provisions of City Code, Chapter 28~ where such provisions are not inconsistent with this section, and the agreements approved and accepted by the City Council. By adopting and implementing Section 28-59 of the Code of Ordinances of the City of Page 1 of5 Lubbock, it is not the intention of the city to offer to sell water to persons located outside the corporate limits other than the Town of Ransom Canyon and Lubbock County Water Control and Improvement District No.1. (c) The authority to extend city's water distribution system outside the corporate limits and to offer to sell water to the Town of Ransom Canyon and Lubbock County Water Control and Improvement District No. 1 shall be subject to the conditions and limitations, as follows: (1) In order to accept the city's offer to sell water, the Town of Ransom Canyon and Lubbock County Water Control and Improvement District No. 1, each shall request service and each shall enter into a written contract approved and accepted and signed by the mayor on behalf of the city. (2) As a part of the written contract for water service, the Town of Ransom Canyon and Lubbock County Water Control and Improvement District No. 1 shall agree to limit the volume of water delivered, pursuant to such contract, to each entity respectively, during any twenty-four (24) consecutive hours; and any three hundred sixty-five (365) consecutive days. The volume limitation for each value shall be agreed to between the city and the Town of Ransom Canyon and Lubbock County Water Control and Improvement District No. 1, but in no event shall such volume exceed that which is necessary to allow complete service (i) by the Town of Ransom Canyon (a) within the corporate limits of the Town of Ransom Canyon as such limits exist as of January 1, 1988; (b )within any area included within the authorized service area of its Certificate of Convenience and Necessity, as issued by the Texas Commission on Envirorunental Quality, or successor agency; or (c) to Roosevelt Independent School District; or (ii) by the Lubbock Water Control and Improvement District No. 1, within the service area of the Lubbock County Water Control and Improvement District No. 1 actively being served by such district in the corporate limits of the Village of Buffalo Springs as such limits existed on January 1, 1988. (3) As part of the application, the Town of Ransom Canyon and Lubbock County Water Control and Improvement District No. 1 shall each agree to provide retail service only and to limit service to consumers located within their respective service area, as described in Section 28-59 (c)(2) of the Code of Ordinances of the City of Lubbock. ( 4) As part of the application and agreement, the Town of Ransom Canyon and Lubbock County Water Control and Improvement District No. 1 shall each agree to pay for water Page 2 of5 delivered by city at the rate established from time to time by the city council. The city, acting through the city council, reserves the right to adjust the rate from time to time based upon the methodology recommended by the city's consultants. (5) As part of the resolution approving the agreements between this city and the Town of Ransom Canyon and Lubbock County Water Control and Improvement District No. 1, the City Council shall expressly find that there is adequate untreated water supply and water treatment capacity and treated water storage, pumping, and distribution capacity within the city's water system to satisfy the demands of the Town of Ransom Canyon and Lubbock County Water Control and Improvement District No. I to the extent described in their respective agreements, together with all other service commitments of the city that are existing or anticipated at the time the wholesale customer applies for service. (6) The water department of the City of Lubbock is hereby authorized to adopt policies and procedures, not inconsistent with the terms of this section, as may be necessary to implement the provisions for the intent of the City Council herein expressed. ( d} The City Council approves and accepts the methodology of determining the city's cost of providing services to the Town of Ransom Canyon and Lubbock County Water Control and Improvement District No. I as described in the report prepared by Freese & Nichols, the city's consulting engineers, dated June, 1988; and based upon the methodology set forth in such report the City Council adopts the initial rates for providing services to the Town of Ransom Canyon and Lubbock County Water Control and Improvement District No. 1 as follows: Eighty-one and seventeen-hundredths (81.17) percent of the rate established for "commercial" as set forth in 28-53 of the Code of Ordinances of the City of Lubbock. In addition, there shall be added to such rate the proportionate costs of installing capital improvements necessary to furnish such water which shall be repaid over a period of thirty (30) years on either an annual or monthly basis at six and one-half (6-1/2} percent simple interest. From and after August 28, 2008, any new contract for water sales, including amendments to existing contracts, by and between the city and the Town of Ransom Canyon and/or Lubbock County Water Control and Improvement District No. 1 shall provide for eighty-one and seventeen- hundredths (81.17) percent of the rate established for either (i) multifamily residential, commercial and public customers; or (ii) wholesale customers, Page 3 of5 as set forth in Section 28-53 of the Code of Ordinances of the City of Lubbock, as same may be amended from time to time. (e) The authority granted to the water department to offer the sale of water to the Town of Ransom Canyon and Lubbock County Water Control and Improvement District No. 1 and any offer made by the water department pursuant to this authority, shall cease at midnight, February 15, 1989, unless the offer is accepted. Any offer shall be accepted by delivery to city of a contract acceptable to the city, signed by the authorized representatives of the prospective customer. Acceptance of the offer by one of the two (2) prospective customers shall not extend the authority or the offer to sell water to the other prospective customer. (f) The prior policy adopted March 5, 1984, and this section shall not be construed to prohibit the sale of water to federal, state or local governments, governmental agencies or governmental subdivisions pursuant to appropriate intergovernmental contracts. (g) The prior policy adopted March 5, 1984, and this section shall not be construed to prohibit water service to city-owned property and/or facilities located thereon regardless of whether such facilities are located inside or outside of the boundaries of the City of Lubbock. SECTION 2. THAT should any paragraph, section, sentence, phrase, clause or word of this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this Ordinance shall not be affected thereby. SECTION 3. 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. Page 4 of5 AND IT IS SO ORDERED. Passed by the City Council on first reading this 12thday of __ --=Au=-gu=s-=-t __ _,, 2008. Passed by the City Council on second reading this 19ttday of_-=Au~gu=s...:.t ___ , 2008. TOM~~ A TrEST: APPROVED AS TO CONTENT: ~a Deputy City Manager/Director of Water Utilities APPROVED AS TO FORM: Richard Casner, Assistant City Attorney RichardJRansomCanyon Ordinance 052308 Page 5 of5