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File #: 15-0157    Version: 1 Name: ORD - Utilities - Rates and Charges
Type: Agenda Item Status: Old Business
File created: 3/2/2015 In control: City Council
On agenda: 3/10/2015 Final action:
Title: Consider and take action on an ordinance amending Chapter 114 of the Code of Ordinances of the City of League City, Texas entitled “Utilities” by amending Article IV therein entitled “Rates and Charges” (Director of Finance)
Attachments: 1. Data Sheet, 2. Proposed Ordinance with Exhibit A, 3. Proposed Ordinance Redline Version, 4. List of Water and Sewer Fees
Title
Consider and take action on an ordinance amending Chapter 114 of the Code of Ordinances of the City of League City, Texas entitled “Utilities” by amending Article IV therein entitled “Rates and Charges” (Director of Finance)

Background:
Approval of this ordinance will authorize adjustments to the water and wastewater rates and other fees based on the recommendation from NewGen Strategies & Solutions’ Water and Wastewater Multi-Year Financial Plan and Rate Design Study as presented to City Council on January 13, 2015. Upon implementation of the recommended rates for this year, the plan will be reviewed annually as to measure the performance of the rates and evaluate the need for further adjustment.

The council last took action to update water and sewer rates, fees and affected ordinances on October 28, 2008. Since that time, increases in wholesale purchase cost, daily operations and expenses, growth with increase in service demands and investment in significant capital program has dictated the need to update rates.

Approval of this action will authorize staff to update the rates into three (3) billing categories: residential (single-family dwellings), commercial (including multi family, schools, apartments, condominiums, etc.) and commercial irrigation. The 2015 recommended rate structure will 1) establish an increasing (inclining) block rate structure for water, 2) reduce the number of gallons in the minimum sewer bill to 2,000 (from the current 3,000), 3) reduce the current cap of 11,000 gallons for wastewater consumption to 10,000 gallons for residential customers, and 4) establish multi-family customers as commercial customers, eliminating the 90% of units billing assumptions.

A summary of the new rates and charges is as follows:

Residential Usage Cost
Water Base 0 to 3,000 gallons $ 7.13
3,001 to 10,000 gallons $ 5.90/per 1,000 gallons
10,001 to 25,000 gallons $ 6.79/per 1...

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