HomeMy WebLinkAboutResolution - 4857 - Statement Of Intenet - Franklin Water Service Company - Rate Change - 06/08/1995Resolution No. 4857
June 8, 1995
Item #16
RESOLUTION AND ORDER
WHEREAS, the Franklin Water Service Company has heretofore filed an application for
a rate/tariff change with the City of Lubbock on May 9, 1995, for its customers within the City
of Lubbock; and
WHEREAS, such proposed rate change will result in a net reduction in water rates for
those customers of Franklin Water Service Company within the City of Lubbock; and
WHEREAS, no complaints about such rate change have been received by the City of
Lubbock; and
WHEREAS, the Franklin Water Service Company has filed a similar rate request with the
Texas Natural Resource Conservation Commission (No. 30628-G) for its customers outside of
the City of Lubbock; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT, pursuant to Section 13.187 of the Texas Water Code, the Franklin Water Service
Company shall be entitled to immediately place into effect such proposed rate change for
customers in the City of Lubbock as is specified in the Statement of Intent attached hereto as
Exhibit A.
Passed by the City Council this
ATTEST:
Pad7, k1 rl�j
1&4-M-7-
riy Johnso , City Secretary
APPROVED AS TO CONTENT:
ferry Elle rook, Director of ater Utilities
APPROVED AS TO FORM:
G. Vandiver, Assistif City Attorney
DGWeedocshvatrate.res
May 25, 1995
Franklin Water Service Co.
P.O. Box 8300-126
Dallas, Tai 75205
(214) 952-8225
May 9, 1995
Mr, Terry Ellerbrook
Director of Water Utilities
City of Lubbock
P. O. Box 2000
Lubbock, Texas 79457
Resolution No. 4857
June 8, 1995
Item #16
Re: Rate/Tariff Change Application of Franklin Water Service Company in Lubbock
County; CCN No. 12374; Application No. 30628-G
Dear Mr. Ellerbrook:
Please find enclosed our Application for Rate/Tariff Change, which has been recently approved by
the TNRCC for Franklin Estates - South, CCN # 12374 for applicable customers. As we
discussed previously, 48 or our 60 customers within this system reside outside the city limits,
within TNRCC jurisdiction. The remaining 12 are located inside City of Lubbock boundaries, an
area which the City, of course, has jurisdiction.
In that this is a contiguously operated water system incurring common costs of operation across
the customer base, we feel rates should be the same for system customers whether inside or
outside of the City's boundaries.
Please also note that this is an application for a rate DECREASE. The decrease request was
based on a 12 month "test period" of usage data and decreasing operating costs (after installation
of a new metered distribution system along with other updates to the system).
Please let me know if I can answer any questions.
Sinc
5prely,
Vir "a Franklin Fuller
City of Lubbock
P.O. Box 2000
Lubbock, Texas 79457
E306-767-2592
Ms. Virginia Franklin Fuller
Franklin Water Service Company
P.O. Box 8300-126
Dallas, Texas 75205
Office of
Water Utilities Operations
April 20, 1995
RR: Rate/Tariff Change Application of Franklin Water Service Company in Lubbock County;
CCN No. 123474; Application No. 30628-G
Dear Ms. Fuller:
Regarding your letter dated April 10, 1995 requesting an appropriate instrument verifying that the City of
Lubbock relinquishes its exclusive original jurisdiction over the utility rates within its corporate limits, we
have researched this matter and have found that no such instrument exists. In discussing this matter with
our attorneys, we have been advised that relinquishing our jurisdiction over any utility rates within our
corporate limits would not be in the City's best interest. In fact, the City cannot relinquish its jurisdiction
over any portion of our system without relinquishing or jeopardizing total jurisdiction within the corporate
limits.
The City of Lubbock's governing body, the Lubbock City Council, has exclusive original jurisdiction over
all water and sanitary sewer utility rates, operations, and services provided by a water and sewer utility
within its corporate limits. Therefore, according to Maria Sanchez, Staff Attorney -Legal Services
Division of the TNRCC, you will first have to apply for a rate change with the City of Lubbock, requiring
that you or your representative appear before the Lubbock City Council during an "Informal Rate Hearing"
to make your case for the rate change. At that time the City Council, acting as regulatory authority, can
approve or not approve the requested rate change. If the City Council renders a decision that you do not
agree with, you can appeal to the TNRCC, pursuant to Section 13.042 of the Texas Water Code.
The City Council meets the 2nd and 4th Thursday of each month with agenda items being turned in no later
than the preceding Tuesday. As Director of Water Utilities, I will need to review all materials associated
with this rate change, including proof that a statement of intent has been delivered to each rate payer
notifying them of the amount of change and date the informal rate hearing is to go before the City Council.
Also, include reasoning used to convince TNRCC to approve the rate change for those rate payers outside
the City limits. You will need to deliver materials to my office 10 days in advance of your proposed council
appearance so I can provide input, if needed, to the Council.
Please let me know when you would like to make an appearance before the City Council and I will be
happy to make the necessary arrangements to set up the `Informal Rate Hearing".
Sincerely,
J �
Terry Elle -rook
Director of Water Utilities
xc: Bob Cass, City Manager
Mike Murphy, P.E., Sr. Engineer/Water Utilities
TEXAS NATURAL RESOURCE CONSERVATION COMMISSION
Water Utilities File No.
Division r (Commission
Utility Certification use only)
and Rate Design Section
1.
APPLICATION FOR A RATE/TARIFF CHANGE FOR UTILITIES
WITH 200 OR LESS CUSTOMERS
Applicant The Franklin Partnership
(Individual, Corporation or Other legal Entity)
Franklin Water Service Co.
Utility flame (if different from above)
Individual
X Partnership
Corporation
(Charter Number)
Sub Chapter -S Corporation
Other, please explain
Route 16, Box 609, Lubbock, Texas 79403 12374
(Street Address or Location) (CCH Humber)
Post Office Box 8300-126, Dallas
(Business Address) (City & County)
Texas 75205 (214) 952-8225
(State and Zip Code)
Contact Person: Virginia Franklin Fuller
(Name of Person to be Contacted)
Post Office Box 8300-126
Dallas
(Business Phone)
(214) 952-8225
(Area Code --Telephone Number)
Texas 75205
(Address) (City) (State) (Zip Code)
If the applicant is a corporation, please provide a copy of the corporation's "Certificate of Good
Standing" from the State Comptroller's Office. This "Certificate of Good Standing" can be
obtained from:
Comptroller of Public Accounts
Office Management
P. O. Box 13528
Austin, 'Texas 78711
1-800-252-5555
RATE20O.APP Page 1 of 14
REV. 12193
2. Who provides operational services for the utility company?
A. Owner or Employees (attach additional sheets if necessary)
1. Name: Donny R. Bailey
a. Short job description: Certified water operator; responsible
for maintenance/repair and meter reading
b. Approximate number of hours per week the owner or employee works
for the company: 40+
C. Salary (indicate if it is hourly, weekly, monthly or annual): $1,400
2. Name:
a. Short job description:
b. Approximate number of hours per week the owner or employee works
for the company:
C. Salary (indicate if it is hourly, weekly, monthly or annual):
B. Contract Services (Attach additional sheets if necessary)
1. Name:
a. Short job description:
b. Approximate number of hours per week the contract operator/laborer
works for the company:
C. Amount paid for 5erviCeS (indicate if it is hourly, weekly, monthly or annual):
C. Please provide the names and classifications of the utility's licensed operators.
Donny R. Bailey, Class D
Please attached additional pages if necessary.
RATE20O.APP Page 2 of 14
7cV. 12!93
3. A.
Item
Please provide the following inventory of the water utility plant being used to provide water service
(for sewer attach a similar list). If a hearing is required, you will be responsible for supporting this
information with the invoices or other documentation.
Date of Original Cost Annual Accumulated
Installation When Installed Depreciation Depreciation
Land
Flow Meters
1993
$ 1,185 $
39.46
$ 39.46
',Wells
Well Pumps
Various (90-92)
4,087
136.09
428.38
- 5 hp or less
- greater than 5 hp
Booster Pumps
- 5 hp or less
- greater than 5 hp
Chlorinators
11/1/90
1,261
126.10
504.40
11/1/91
934
93.40
280.20
Structures
(a) Wood
(b) Masonry
Storage Tanks
Pressure Tanks
10/7/93
2,051 \vV'�?
41.02
41.02
Distribution
07/01/89
5,970 coy`
119.40
597.00
System (mains
10/15/93
20,146 '
�'
402.92
402.92
lines)
03/13/94
05/03/94
3,600 -
3,600 `��
72.00
72.00
-----
-----
Meters & Service
10/15/93
3,133
156.65
156.65
(taps not covered
by fees)
Office Equipment
07/15/91
10/15/93
1,066
800
106.60
80.00
319.80
80.00
01/01/94
2,391-`
239.10
-----
Vehicles
05/05/94
1,012---
101.20
-----
Shop Tools
Heavy Equipment
07/01/89
1,750
175.00
875.00
Other: (Please list
each one:)
Engineering
Design Plan
10/15/93
411000
200.00
200.00
TOTAL
RATE200.APP
$ 56,986 1$ 2,160-.94
$ 3,924.83
Page 3 of 1»
3. B. If this utility was purchased from another entity, please indicate:
Date of Purchase: N/A
Amount of Sale: N/A
Seller: N/A
3. C. If any of the items listed under "3A" were financed with customer contributions, please list and
indicate amount of contributions for each item.
ITEM DATE OF TOTAL COSI'
INSTALLATION,
AMOUNT OF
CUSTOMER
CONTRIBUTION
- Attach additional sheet(s) if necessary -
3. D. If any of the Items listed under "3A" were contributed by a developer entity, please Iist facilities
and cost.
ITEM DATE OF TOTAL COST AMOUNT OF
INSTALLATION DEVELOPER
CONTRIBUTION
-T
- Attach additional sheet(s) if necessary -
RATE200.APP Page 4 of 14
a=v. 12143
4. Please provide the following information regarding the cost to the utility of providing water utility
service over a twelve month period. The twelve month "test period" should be the most recent period
for which the utility has complete financial records but must have ended within 12 months of the date
of this filing. Copies of the invoices supporting the annual total for the test period should be kept in
separate folders corresponding to items (a) through (i) for staff review at the hearing.
Twelve month "test period" 7 f 1193 to 6 �0 / 94
Item Actual Test Increase(Decrease) Adjusted
Year Amount Expected in Next Total
12 Months
OPERATIONS & MAINTENANCE
a. Salaries & Wages 3,050 f. p
b. Contract Labor 3,600 f . 3
c. Water Purchased from
Another Source (if any)
d.
Chemicals for Water Treatment
------
'--"Included
not including hearing expense,
Includedin "f"
e.
Utilities (Electricity)
4,249 v.�
f.
Repairs & Maintenance
2,993 v .
Z�
v
,.
Office Expenses
1,543 f.
k. SUBTOTAL O & M
20,617
-�
h.
Accounting & Legal Fees
940 v.
i. Cost of Preparing Rate Change
not including hearing expense,
if necessary
745
v.
2,078
v.
W1 Is
J . Miscellaneous
1, 418
f
k. SUBTOTAL O & M
20,617
-�
1. Ad Valorem (Property) Taxes
160
f .�
m. Other Taxes
335
f .
?j
n. Annual Depreciation & Amortization
231160
v .
2,1 � O
o. Federal Income Taxes ----`-
p. Net Operating Income (Return) �� �4.5��� �}' '� 4-T
------ ------ ------
q. TOTAL Revenue Requirement
(Cost of Service) --r��`� 3�(a�--,1
RATE200.APP Page 5 cf 14
5. If you listed anything in Question 4 as an increase/decrease expected in the next 12 months, please
provide a short explanation by item of why there will be a change and how you projected the cost.
Changes in cost must be known and measurable and supported by invoices or other documentation.
Attach additional pages if necessary.
6. Please provide the following information regarding the revenues collected by the utility over the
same twelve month period used in Question 3.
Twelve month period: 7 / 1 /93 to 6 /30 /94
Item Actual Amount Increase(becrease) Adjusted
Billed Expected in Next Total
Twelve Months
--------------------------------------------------------------------------------------------------------
a. Sale of Water to (1)
Customers 18, 056
b. Tap Fees 320
C. Reconnect Fees
d. Standby Fees
e. Other Revenues
f. TOTAL 18,376
Line f, page 6, should correspond to line q., page 5.
RATE200.APP
-- ., Page b of 14
_
7. If you listed anything in Question 6 as an increase/decrease expected in the next twelve months,
please provide a short explanation by item of why there will be a change and how you projected the
change.
Attach additional pages if necessary.
8. Has the utility or utility owner filed bankruptcy within the last seven years? If so, explain status of
applicant at this time,
9. Please provide the following information regarding utility operations over this same twelve month
"test period".
Twelve month period. 7 1 /93 to 6 /30 / 94
a. Total number of gallons pumped (total master meter
reading for the year) (1-15 thru 9-15-94) 5,429,850 gallons
b. Total number of gallons billed to customers(1-15 thru 9-15-94) 5,429,850 gallons
C. Total number of gallons purchased from another source
for sale to customers (if any) N/A gallons
Source: Meter Readings
to. How many customers (active connections) did you have at the beginning and at the end of the
twelve month period?
Beginning of period End of Period
a. Unmetered
Residential
Commercial
Standby
b. Metered
5/8" - 314" 60 60
1"
l 1/2"
2"
3"
Other
c. Total 60 60
RATEZOO.APP Page 7 of 14
11. How often and on what dates are water meters typically read?
15th
12. When are bilis typically sent out? 18th
13. List the following information concerning debt of the utility and attached copies of notes payable:
Date Date Current Interest
Principal Payable
of of Outstanding Annual
Annual to
Issue Maturity Principal Rate% Amount
Payment Whom
As of 121 317 94
1/27/94 1/27/95 $ 56,027.91 5.2 % $ 0
$ 0 Security Bank
11/1/93 11/1/91 $ 26,092.00 10 % $2,039
$ 7,092 Security Bank
TOTAL 82 ,119.91 2,039
7,092
14. How much equity or total capital does the company have in the utility? $23,424.00
15. What rate of return on investment in plant is expected? 11 %
16. Why would this rate of return be considered reasonable in today's market?
This is a standard rate for investor owned water utilities.
17. Do you serve customers within the corporate limits of a municipality? Yes If yes, which
municipalities? Lubbock How many customers are within limits of the
municipality? 12 Have you filed a request to change rates with the municipality? No
If not, please explain This system has always fallen under the jurisdiction of
TNRCC and has never been required to file a tariff with the city.
If rates are not the same for customers inside and outside corporate limits, please attach tariff for
in -city customers. The rates are the same.
RATE200.APP Page 8 of 14
REV. 12/G3
18. Are you current in your payment of the Regulatory Assessment to the Texas Natural Resource
Conservation Commission or the predecessor agency, Texas Water Commission, for assessments payable
beginning January 1, 1992? Yes
19. Water Utilities:
Please address all issues noted in the most recent public water system annual inspection report letter from
the Texas Department of Health, Texas Water Commission, or Texas Natural Resource Conservation
Commission. See attached inspection report.
Sewer Utilities:
Please provide a copy of and address all issues noted in the most recent inspection report letter from the
Texas Water Commission or Texas Natural Resource Conservation Commission.
RATE200.APP Page 4 of 14
251.1. '2:93
STATE OF TEXAS
COUNTY OF
Dallas
AFFIDAVIT
I Virginia Franklin Fuller , being duly sworn, file this NOTICE OF PROPOSED RATE
CHANGE as Owner (indicate relationship to Utility, that is, owner, member of
partnership, title as officer of corporation, or other authorized representative of -Utility); that, in such
capacity, I am qualified and authorized to file and verify such NOTICE; and that all statements made and
matters set forth herein are true and correct.
I further represent that a copy of the attached notice was provided by Frankl in Water Service Coto
(mail or hand delivery)
each customer or other affected party on or about ��1ik'�- /� , 199, and that the Utility filing
this NOTICE has 200 or fewer customers including customers of other utilities under common control
or ownership.
Affiant ( tility's Authorized Representative)
If the Affiant to this form is any person other than the sole owner, partner, officer of the Utility, or its
attorney, a properly verified Power of Attorney must be enclosed.
Subscribed and sworn to before me this the
199 U, to certify which witness my hand and seal of office.
SEAL Eccqpp
DAVID W. SANTHNOTARY PUBLIC98
State of Texas Exp. t�i•11-
RATE200.APP
REv. 12/93
day of 6(- rc �1
Ly
NOTARY PUBLIC IN AND FOR THE
STATE OF TEXAS
h) i '� 13) (_f S�l / '7- Al
PRINT OR TYPE NAME OF NOTARY
MY COMMISSION EXPIRES' l / Ap
Page 10 of 14
NOTICE OF PROPOSED RATE CHANGE
Franklin Water Service Co. 12374
Company Name CCN Number
has submitted a rate change application with the Texas Natural Resource Conservation Commission
(Commission). The pro2gsed rates listed on the next page will apply to service received after the
effective date provided below. If the Commission receives protests to the proposed increase from 10
percent of the ratepayers or from any affected municipality within 60 days of the proposed effective date,.
a public hearing will be scheduled to determine if the proposed rates are reasonable. Protests should be
mailed to:
Texas Natural Resource Conservation Cornmission
Water Utilities Division, Utility Certification and Rate Design Section
P. O. Box 13487
Austin, Teras 78711-3087
Unless protests are received from 10 percent of the ratepayers or the Commission staff requests a hearing,
no hearing will be held. Please read the following information carefully:
Franklin Estates - South
Subdivisions or Systems Affected by Rate Change
Post Office Box 8300-126 Dallas Texas 75205 (214) 952-8225
Company Address City
$3,600.00
Annual Revenue Ii< hQW Decrease
January 15, 1994
Date of Last Rate Change
State Zip Telephone
October 15, 1994
Date Customer Notice Mailed
15th of each month
Date Meters Typically Read
EFFECTIVE DATE OF PROPOSED INCREASE: November 15 = 19 94
The proposed rates will apply to all service rendered after the effective date and will be reflected on the
bili you receive approximately 30 to 45 days after the effective date.
In the event that the application is set for hearing, the specific rates requested by the utility may be
decreased or increased by order of the Commission. If the Commission orders a lower rate to be set,
the utility may be ordered to refund or credit against future bills all sums collected during the pendency
of the rate proceeding in excess of the rate finally ordered plus interest. You may insect a copy of the
rate_ chance application at your utilitv's office or at the Commission's office at Paris 35 - Building F.
12015 Park 35 Circle, Suite 31044 Austin Texas west side of IH -35 south of Yager Lane. Additional
information about the application can be obtained by contacting the Commission's Utility Certification
and Rate Design Section at 512/239-6960. Information about how you can participate in the rate setting
process can be obtained by contacting the Public Interest Counsel at 512/239-6363.
RATE200.APP Page 11 of 16
REV. 12/93
NOTICE OF PROPOSED RATE CHANGE (Cont.)
CURRENT RATES
$ 17 00 including 1,000 gallons
monthly residential. 5/$ or 3/4 meter
$ 1 86 for each additional 1000 gallons
1
inch meter
$A
1 month
11f7.
inch meter
$ K JA
/ month
2
inch meter
$ N
1 month
3
inch meter
$ N 1A
/ month
$
Other
00
(Maximum $25.00)
Page 2
PROPOSED RATES (ciecreo-Se)
$ 14 04 including 1,000 gallons
monthly residential 5/$ or 3/4 meter
$ 1 62 for each additional 1000 gallons
1 inch meter $NA / month
11h inch meter $ MIA / month
2 inch meter $ N A 1 month
3 inch meter $ month
Other
Regulatory Assessment of 1 % is added to base bill and volume charge.
Miscellaneous Fees I Miscellaneous Fees
Tap Fee
$
80
00
Tap Fee
Reconnection Fee:
Reconnection Fee:
Nonpayment of Bill
Nonpayment of Bill
(Maximum $25.00)
$
25
00
(Maximum $25.00)
Customer's Request
$
50
00
Customer's Request
Transfer Fee
$
-0-
Transfer Fee
Late Charge
$
2
00
Late Charge
Returned Check Charge
$
20
00
Returned Check Charge
Deposit
$
25
00
Deposit
RATE20O.APP
REV. 12/93
$ 25 00
$ 50 00
$ -0-
$2.00°l
$ 20 00
$ 25 00
Page 12 of 14
Franklin Water Service Co. Water Tariff Page No. 2
(Water Utility Name) Revision Date I I SECTION 1.0 - RATE SCHEDULE
ection 1.01 - Rate
Monthly Minimum Cham
Meter Size all nae h r e
5/8" or 3/4" $ 14 04 (INCLUDING 1,000 GALLONS) $
per 1000 gattons
same for al[ meter sizes
1" $ N/A.^
1 Ifi" $ N/A.
2"
3"$
4" $�
REGULATORY ASSESSMENT ............................... 1.0%—
A REGULATORY ASSESSMENT, EQUAL TO ONE PERCENT OF THE CHARGE FOR RETAIL WATER SERVICE ONLY, SHALL BE COLLECTED
FROM EACH RETAIL CUSTOMER
Section 1.02 - Miscellaneous Fees
TAPFEE ............................................. $ 80 00
TAP FEE IS BASED ON THE AVERAGE OF THE UTILITY'S ACTUAL COST FOR MATERIALS AND LABOR FOR STANDARD RESIDENTIAL
CONNECTION OF 5/8" or 3/4" METER.
RECONNECTION FEE
THE RECONNECT FEE STILL BE CHARGED BEFORE SERVICE CAN BE RESTORED TO A CUSTOMER WHO HAS BEEN DISCONNECTED FOR
THE FOLLOWING REASONS:
a) Non payment of bill (Maximum $25.00) ................. $ 25 00
b) Customer's request ............................. $—
OR OTHER REASONS LISTED UNDER SECTION 2.0 OF THIS TARIFF
TRANSFER FEE ........................................ $ -0--
THE TRANSFER FEE WILL BE CHARGED FOR CHANGING AN ACCOUNT NAME AT THE SAME
SERVICE LOCATION WHEN THE SERVICE IS NOT DISCONNECTED
LATE CHARGE.........................................$2.00 OR 5%
A ONE TIME PENALTY MAY BE MADE ON DELINQUENT BILLS BUT MAY NOT BE APPLIED TO ANY BALANCE TO WHICH THE PENALTY
WAS APPLIED IN A PREVIOUS BILLING.
RETURNED CHECK CHARGE ............................... $ 20 00
CUSTOMER DEPOSIT (Maximum $50) .......................... $ 25 00
METER TEST FEE (actual cost of testing the meter up to) ............... $ 25.00
THIS FEE MAY BE CHARGED IF A CUSTOMER REQUESTS A SECOND METER TEST WITHIN A TWO YEAR PERIOD AND THE TEST
INDICATES THAT THE METER IS RECORDING ACCURATELY.
RATES LISTED ARE EFFECTIVE ONLY IF
THIS PAGE HAS TNRCC APPROVAL STAMP
RATE200.APP Page 13 of 14
REV. 121'93
List of Deficiencies
Franklin Mobile Home Park - South
I.D. # 1520080
Lubbock County, Texas
Survey Date: 07/13/94
Surveyed By: Bob Purkiss
1. As you are aware, the chloride, fluoride, nitrate, sulfate and total dissolved solids
concentrations exceed this agency's maximum contaminant levels. You must continue
to notify your customers on a quarterly basis and in writing that the nitrate concentration
of your water is 18.3 mg/l. In addition, you must continue to notify your customers on
an annual basis and in writing that the fluoride concentration of your water is 2.4 mg/l.
One copy of each of the quarterly and annual notices must be submitted for our records.
(§290.3(8))
2. The pressure tank located at well #8 must be repainted. (§290.46(p)(1))
Return Pre -Registrations to:
PRE -REGISTRATION FORS
Herb McGregor, Secretary
PRWUA Short School
P.O. Box 1324
Amarillo, TX 79105-1324
Make Check Payable to P.R.W.U.A..
Call or Fax Herb McGregor at (806) 355-3220 for Registration Information or Call Larry
West at (806) 378-3019 for Other Inquiries.
Name: l Address:
Social Security Number: - City/State/Zip: �f
Member of: Association
Course Selection: �(!�, Registration Fee Enclosed
Panhandle Regional Water Utility Assn. �uikRa
P.O. Box 1324 U S. POSTAA
GE
Amarillo, TX 79105-1324 PAM
Permit No. 80
AmardBo jexas
Virginia Franklin
Franklin Estates
P.O. Box 8300 - 126
Dallas, Tx 75205