HomeMy WebLinkAbout2015-06-05 Special Meeting Workshop Packet
BOARD OF DIRECTORS
SPECIAL SESSION
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
100 MUNICIPAL DRIVE
TROPHY CLUB, TEXAS 76262
JUNE 5, 2015 10:00 A.M. Svore Municipal Boardroom
SPECIAL SESSION
CALL TO ORDER AND ANNOUNCE A QUORUM
WORKSHOP
1. Consider and take appropriate action regarding proposed water and sewer rates including:
a. Summary and review of rate model developed by J. Stowe Group (aka NewGen Strategies).
b. Water rate assumptions and proposed rates.
c. Sewer rate assumptions and proposed rates.
d. Set dates for public hearing, rate adoption, and effective date of rates.
Attachment: Rate Committee meeting summary
ADJOURN
CERTIFICATION
THE STATE OF TEXAS §
COUNTIES OF DENTON AND TARRANT §
THIS CERTIFIES THAT ON JUNE 2, 2015 BY 10:00 A.M. A COPY OF THE ABOVE NOTICE OF TROPHY CLUB MUNICIPAL
UTILITY DISTRICT NO. 1, BOARD OF DIRECTORS SPECIAL MEETING TO BE HELD ON FRIDAY, JUNE 5, 2015 AT 10:00
A.M., WAS POSTED ON THE FRONT WINDOW OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
ADMINISTRATION BUILDING LOCATED AT 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS, WHICH IS A PLACE
CONVENIENT TO THE PUBLIC WITHIN THE BOUNDARIES OF THE DISTRICT. A COPY OF THIS NOTICE WAS ALSO
PROVIDED TO THE COUNTY CLERKS OF DENTON AND TARRANT COUNTIES TO BE POSTED ON THEIR
WEBSITES OR AT A PLACE CONVENIENT TO THE PUBLIC PURSUANT TO SECTION 49.063 OF THE WATER CODE
AND SECTION 551.054 OF THE OPEN MEETINGS ACT, CHAPTER 551 OF THE TEXAS GOVERNMENT CODE.
LAURIE SLAGHT, DISTRICT SECRETARY
Trophy Club Municipal Utility District No. 1 1 of 3 June 5, 2015 Special Session - Agenda Packet
Rate Committee Meeting Summary
May 29, 2015 at 2:00 p.m.
Present: Jim Thomas Terri Sisk Jennifer McKnight
Jim Hase Renae Gonzales
The meeting came to order at 2:00 p.m.
The committee reviewed assumptions in the original model developed by the consultant. It was noted that the model
captures the correct percentages related to fixed costs (making up the base rate) and variable costs (making up the
volumetric rates). As discussions ensued staff explained that costs are totally separated for water and sewer to
encompass only the rates associated with each to cover the costs associated with each.
The committee first reviewed the proposed rates for water service. Within the model, staff included 100% recovery of
expended/committed reserves used for water service and increased costs for operations. Reserve recovery includes the
Fort Worth Regional Water Line Project and the Water System Study. Staff also included $300,000 for water system
capital improvement projects in FY 2016. The committee wanted to continue to work towards AWWA meter equivalency
rates as started last year but did not want to move to 100% of equivalencies this year (i.e. continue to move towards
equivalencies over time). Water rates for FY 2016 were calculated as shown in Table 1.
Next, the committee reviewed four scenarios for sewer rates: status quo with 18K cap for residential (Table 2), no cap
for residential (Table 3), winter averaging for residential (Table 4), and a flat fee for all users (Table 5). In the first three
scenarios, there was no cap for commercial and in the fourth scenario commercial would pay the same flat rate as
residential. In all of the scenarios, staff included the new revenue bond payments for the wastewater treatment plant
upgrade, increased operational costs, and $300,000 for wastewater system capital improvement projects in FY 2016.
The committee requested that staff prepare comparisons of current and proposed rates for each scenario based on the
following volumes of water used to present at the workshop: for residential: 5,000, 10,000, 15,000, 20,000, 25,000 and
30,000 gallons; for commercial: 25,000, 50,000, 75,000, 100,000 and 125,000 and 150,000 gallons.
The meeting adjourned at 4:55 p.m.
TABLE 1: Water Rates
Residential and Commercial Base Rates
Meter Size Current FY 2016
3/4" ‐ 5/8" 12.71 12.99
1" 16.71 20.39
1.5" 26.42 32.23
2" 38.06 46.43
3" 65.23 79.58
4" 104.04 126.93
6" 201.06 245.29
8" 0.00 0.00
Residential and Commercial Volumetric Rates
Current FY 2016
0‐6,000 2.70 3.03
6,001‐17,000 3.14 3.53
17,001‐25,000 3.64 4.09
25,001‐50,000 4.23 4.75
50,0001 + 4.91 5.52
Trophy Club Municipal Utility District No. 1 2 of 3 June 5, 2015 Special Session - Agenda Packet
TABLE 2: Wastewater Rates Status Quo
Residential and Commercial Base Rates
Current FY 2016
14.58 15.35
Residential and Commercial Volumetric Rates
Current FY 2016
2.50 2.63
TABLE 3: Wastewater Rates No Cap Res & Com
Residential and Commercial Base Rates
Current FY 2016
14.58 14.58
Residential and Commercial Volumetric Rates
Current FY 2016
2.50 2.50
TABLE 4: Wastewater Rates Winter Averaging
Residential and Commercial Base Rates
Current FY 2016
14.58 19.10
Residential and Commercial Volumetric Rates
Current FY 2016
2.50 3.28
TABLE 5: Wastewater Rates Flat Fee
Residential and Commercial Base Rates
Current FY 2016
14.58 47.68
Residential and Commercial Volumetric Rates
Current FY 2016
2.50 N/A
Trophy Club Municipal Utility District No. 1 3 of 3 June 5, 2015 Special Session - Agenda Packet