By Vowell H.B. No. 2704
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regionalization of utility services in El Paso
1-3 County, provisions for consolidation of certain water and
1-4 wastewater service corporations and utility districts into a
1-5 regional utility, and methods for planning, funding and operation
1-6 of a regional Utility.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. DEFINITIONS.
1-9 (a) "assets" means all physical assets, contract rights,
1-10 water rights and all other rights or privileges of any kind or
1-11 nature whether tangible or intangible.
1-12 (b) "city" means the City of El Paso, a home rule city
1-13 pursuant to the laws of the State of Texas.
1-14 (c) "city's municipal jurisdiction" means the city's
1-15 authority within the city limits and the extraterritorial
1-16 jurisdiction of the city.
1-17 (d) "county" means El Paso County.
1-18 (e) "debts" means bonded indebtedness, all contractual
1-19 obligations, claims, judgment, and contingent liabilities for which
1-20 a person or entity is legally liable.
1-21 (f) "districts" means the following: Deerfield Park Water
1-22 Supply Corporation, East El Paso Water Supply Corporation, El Paso
1-23 County Lower Valley Water District Authority, El Paso County Water
2-1 Authority, El Paso County Water Control and Improvement District
2-2 No. 4, El Paso County Tornillo Water Improvement District, El Paso
2-3 County Water Control and Improvement District - Westway, Homestead
2-4 Municipal Utility District, Haciendas del Norte Water Improvement
2-5 District, San Elizario Grant Municipal Utility District, Tornillo
2-6 Water Supply Corporation, Fabens Water Control Improvement
2-7 District, Anthony Water District, any other district in the county
2-8 created by Art. XVI, Sec. 59 of the Texas Constitution providing
2-9 utility service as defined herein and located in the county.
2-10 (g) "PSB" means the Public Service Board, a board of
2-11 trustees having complete management and control of the water and
2-12 wastewater utility systems of the city pursuant to the authority
2-13 contained in Article 1115, Tex. Rev. Civ. Stat. and Ordinance No.
2-14 752 (May 22, 1952) of the city, as amended.
2-15 (h) "regional utility" is the city, acting through its water
2-16 utility as managed and operated by its PSB.
2-17 (i) "utility service" means water supply, wastewater, and
2-18 flood control services.
2-19 (j) "committee" is the Regional Utility Advisory Committee
2-20 as herein after created.
2-21 SECTION 2. PURPOSES OF ACT. The purposes of this Act are as
2-22 follows:
2-23 (a) to encourage and provide for the orderly consolidation
2-24 of the districts in the county into a regional utility in order to:
2-25 (1) insure the provision of utility services to all
3-1 residents of the county at the lowest possible cost according to a
3-2 regional plan;
3-3 (2) eliminate unnecessary competition by the districts
3-4 for limited water, financial and other valuable resources;
3-5 (3) take advantage of economies of scale with regard
3-6 to the provision of utility services in the county;
3-7 (4) conjunctively manage the limited resources of
3-8 surface and ground water of the county so that the integrity and
3-9 quality of these limited resources is protected and extended to the
3-10 greatest extent reasonably possible.
3-11 (b) to enable the city acting through its water utility as
3-12 managed and operated by the PSB to operate as the regional utility
3-13 in the county;
3-14 (c) to give the regional utility the authority to plan,
3-15 operate, and provide for utility services on a regional basis;
3-16 (d) to provide a framework for the management and operation
3-17 of the regional utility within and outside of the city's municipal
3-18 jurisdiction; and
3-19 (e) to provide for the assumption of the assets and debts of
3-20 the districts upon consolidation into the regional utility.
3-21 SECTION 3. DESIGNATION OF CITY AS EL PASO COUNTY REGIONAL
3-22 UTILITY.
3-23 (a) Upon the enactment of an enabling resolution by the City
3-24 Council of the City of El Paso, the city, through its PSB, is
3-25 hereby designated as the regional utility provider in the county
4-1 for the purpose of providing utility services within the county.
4-2 After the enactment of the enabling resolution by the City Council
4-3 of the City of El Paso, the obligation of the regional utility to
4-4 act as the regional utility provider as provided by the terms of
4-5 this act shall continue in full force and effect and shall only be
4-6 amended or abolished by the legislature of the state of Texas.
4-7 (b) Upon the effective date of this act, the regional
4-8 utility shall:
4-9 (1) file an application with the Texas Water
4-10 Development Board for a regional water supply and wastewater
4-11 facilities planning grant study pursuant to the provisions of
4-12 Section 15.406 of the Water Code and the applicable rules
4-13 promulgated by the Texas Water Development Board. In the event of
4-14 approval of the application by Texas Water Development Board
4-15 pursuant to the statute and rules, the regional utility shall enter
4-16 into a contract with the Texas Water Development Board to conduct a
4-17 regional water supply and wastewater facilities planning study
4-18 which shall include all of the county and incorporate any water
4-19 supply and wastewater facilities currently being designed or
4-20 constructed in the county. Results of the planning effort shall be
4-21 completed by December 31, 1993, and shall include an implementation
4-22 schedule and associated preliminary costs for water and wastewater
4-23 facilities to provide service to meet the projected water and
4-24 wastewater needs within the county to the year 2040.
4-25 (2) file an application with the Texas Water
5-1 Development Board for a regional water supply planning grant
5-2 pursuant to the provisions of Section 15.406 of the Water Code and
5-3 the applicable rules promulgated by the Texas Water Development
5-4 Board. In the event of approval of the application by Texas Water
5-5 Development Board pursuant to the applicable statute and rules, the
5-6 regional utility shall enter into a contract with the Texas Water
5-7 Development Board for the preparation of a regional water supply
5-8 planning study which shall include all of the county. Results of
5-9 the planning effort shall be completed by December 31, 1993, and
5-10 shall identify projected water demands and available and potential
5-11 supplies to meet the water supply needs within the county to the
5-12 year 2040.
5-13 (c) Subject to the provisions of all outstanding bonds of
5-14 the city, the regional utility shall serve any area or areas within
5-15 the county, and is hereby designated as the utility service
5-16 provider within the county which shall receive priority
5-17 consideration for purposes of state funding.
5-18 (d) As the regional utility provider, the regional utility
5-19 shall receive priority consideration for purposes of state funding
5-20 of regional planning for the provision of utility service outside
5-21 the city's municipal jurisdiction. The regional utility may enter
5-22 into agreements and cooperative projects with political
5-23 subdivisions and other governmental entities in this State, the
5-24 state of New Mexico, the International Boundary and Water
5-25 Commission, and with the Republic of Mexico or any responsible
6-1 political subdivision thereof, to:
6-2 (1) promote regional planning for the provision of
6-3 utility services;
6-4 (2) promote regional planning which is consistent with
6-5 the United States/Mexico integrated border plan;
6-6 (3) coordinate the regional planning with the
6-7 comprehensive state water plan;
6-8 (4) finance, or seek financing for, the water and
6-9 wastewater infrastructure, especially in economically distressed
6-10 areas;
6-11 (5) provide for regional drought and water supply
6-12 management;
6-13 (6) collect and disseminate water and wastewater
6-14 regional data;
6-15 (7) coordinate state level financial and technical
6-16 assistance in extending or creating water and wastewater service;
6-17 (8) promote conservation planning, education, and
6-18 research of surface water and ground water resources;
6-19 (9) promote preservation of human health and the
6-20 environment;
6-21 (10) promote water quality; and
6-22 (11) accomplish any other related regional utility
6-23 purpose.
6-24 SECTION 4. ORGANIZATION OF LOCAL GOVERNMENT ADVISORY
6-25 COMMITTEE. (a) Within thirty days of the effective date of this
7-1 Act, there shall also be created a committee known as the Regional
7-2 Utility Advisory Committee, consisting of seven members, five (5)
7-3 of whom are to be appointed by the commissioners court of the
7-4 county and two (2) of whom are to be jointly appointed by the
7-5 mayors of the incorporated municipalities, other than the city,
7-6 within the county. The duties of the committee shall be to act as
7-7 an advisory body to the regional utility on matters related to:
7-8 (1) the priorities in the provision of utility
7-9 services;
7-10 (2) the rates and charges for service outside of the
7-11 corporate limits of the city;
7-12 (3) regional planning; and
7-13 (4) adoption of or amendments to rules and regulation
7-14 affecting provision of utility service outside of the corporate
7-15 limits of the city.
7-16 (b) Each member of the committee appointed by the
7-17 commissioners court of the county shall be a qualified voter
7-18 residing within the county and outside the city's municipal
7-19 jurisdiction. Each member of the committee appointed by the mayors
7-20 of the other incorporated cities within the county shall be a
7-21 qualified voter residing within the county and within one or the
7-22 other of the incorporated municipalities other than the city. Each
7-23 member of the committee shall also be over eighteen years of age
7-24 and shall have resided in the county for a minimum of six months
7-25 immediately prior to the date of appointment.
8-1 (c) The two member appointed by each the commissioners court
8-2 of the county and the mayors of the incorporated municipalities in
8-3 the county but not including the city shall serve for three years.
8-4 All other members of the committee, and after the first term of the
8-5 first four members of the committee, shall be appointed to serve a
8-6 two year term. A vacancy on the committee shall be filled by
8-7 appointment for the unexpired term by the commissioner's court or
8-8 the mayors of the incorporated whichever appointed the member whose
8-9 seat was vacated.
8-10 (d) A person is disqualified from serving as a member of the
8-11 committee if:
8-12 (1) he is related within the third degree of affinity
8-13 or consanguinity to:
8-14 (A) a developer of property in the county,
8-15 (B) any elected official of the city or county,
8-16 (C) any manager of the regional utility,
8-17 (D) or any other member of the committee;
8-18 (2) he is an employee or officer of:
8-19 (A) any developer of property in the county,
8-20 (b) any elected official of the city, or other
8-21 incorporated cities within the county, or the county,
8-22 (C) any manager of the regional utility,
8-23 (D) or any manager, engineer or attorney for a
8-24 district, the county, the city, or other incorporated municipality
8-25 within the county;
9-1 (3) he is a developer of property in the county;
9-2 (4) he is serving as an attorney, consultant,
9-3 engineer, manager, architect or in some other professional capacity
9-4 for the regional utility, the county, a district or an incorporated
9-5 city within the county, or of a developer of property within the
9-6 county, in connection with the regional utility service;
9-7 (5) he is a party to a contract with or along with the
9-8 regional utility except for the purchase of public services
9-9 furnished by the regional utility to the public generally.
9-10 SECTION 5. ADDITIONAL RIGHTS AND POWERS OF REGIONAL UTILITY.
9-11 (a) For the purposes of providing utility services and
9-12 operating a regional utility in the county, the regional utility
9-13 shall have all powers and authority provided in Sections 402.001
9-14 and 402.002 of the Local Government Code. The regional utility
9-15 shall specifically have the authority to apply for and obtain
9-16 grants and loans for the purpose of providing utility service
9-17 outside the city's municipal jurisdiction and for the purpose of
9-18 funding and providing for regional projects with other states and
9-19 the Republic of Mexico. This Act amends Sections 791.011 and
9-20 791.026 of the Government Code to authorize the regional utility
9-21 pursuant to the regional water supply and wastewater facilities
9-22 planning study report prepared pursuant to Section 3(b) of this act
9-23 to:
9-24 (1) contract with other local governments,
9-25 municipalities, districts, river authorities, or other state or
10-1 governmental entities within this State, or within other states,
10-2 and with the Republic of Mexico,
10-3 (2) obtain grants and loans to provide utility service
10-4 outside of the city's municipal jurisdiction,
10-5 (3) provide for planning and construction of regional
10-6 projects including water supply or wastewater treatment facilities,
10-7 and
10-8 (4) otherwise promote the regionalization of utility
10-9 services within the county and surrounding areas.
10-10 (b) This act shall not operate to authorize the regional
10-11 utility to condemn land owned by the state or any other political
10-12 subdivision of the state outside the city's municipal jurisdiction.
10-13 (c) Except to the extent of any tax obligation imposed by
10-14 any district and necessary to retire any debt existing on the date
10-15 of consolidation as hereinafter provided, this Act shall not
10-16 operate to allow the regional utility to tax property outside of
10-17 the city's corporate limits.
10-18 SECTION 6. CONSOLIDATION OF DISTRICTS.
10-19 (a) The regional utility shall have the authority to
10-20 consolidate one or more of the districts into the regional utility
10-21 upon the occurrence of one or more the following events:
10-22 (1) a majority vote of the board of directors of a
10-23 district operating as a water supply corporation or investor owned
10-24 utility,
10-25 (2) a majority vote of the board of directors of a
11-1 district other than a water supply corporation to dissolve the
11-2 district by consolidation into the regional utility, followed by an
11-3 election in the district within one year of the date of the
11-4 petition at which a majority of the voters voting in the election
11-5 vote to dissolve the district by consolidation into the regional
11-6 utility;
11-7 (3) a petition requesting dissolution of the district
11-8 by consolidation into the regional utility signed by ten percent
11-9 (10%) or more of the residents of the subject district and
11-10 delivered to the board of directors of the subject district,
11-11 followed by an election within one year of the date of the petition
11-12 at which a majority of the voters voting in the election vote to
11-13 dissolve the district by consolidation into the regional utility;
11-14 or
11-15 (4) an agreement between the regional utility and the
11-16 county, which agreement may be made without the consent of the
11-17 district as to the abolition of the district as it exists within
11-18 the county, but outside of any other municipality's boundaries.
11-19 (b) Notwithstanding the occurrence of a vote or election as
11-20 provided in (a) above, as to each district with bonds, notes,
11-21 obligations or taxes owed, contracted, or authorized at the time of
11-22 the district's vote to consolidate into PSB, consolidation of a
11-23 district into PSB shall not be final and effective until:
11-24 (1) the boards of directors of PSB and the district
11-25 have entered into a consolidation agreement; and
12-1 (2) as to each district other than a district
12-2 operating as a water supply corporation, the board has ordered and
12-3 held an election in the district at which a majority of the
12-4 district's residents approved the terms and conditions of the
12-5 consolidation agreement;
12-6 (3) The district's debts, bonds, notes, obligations
12-7 and taxes, as applicable, have been paid in full; and
12-8 (4) a PSB consolidation order has been filed in the
12-9 real property records of the county and the Texas Water Commission.
12-10 (c) If an election is required to be held in a district for
12-11 the purposes of consolidation into the regional utility, then the
12-12 election shall be held in conformity with the Texas Election Code,
12-13 as amended, and all applicable election law.
12-14 (d) At all times prior to final consolidation of a district
12-15 which has debts or other obligations which may be owed, contracted,
12-16 or authorized, the district shall:
12-17 (1) protect the assets of the district and insure that
12-18 they are not impaired;
12-19 (2) where applicable and necessary, assess and collect
12-20 taxes on property in the district to pay debts created by the
12-21 district; and
12-22 (3) pay debts of the district and manage the assets of
12-23 the district through the sale, lease or other management of
12-24 district lands.
12-25 (e) If taxes were levied on land within a district
13-1 consolidated into the regional utility at the time of
13-2 consolidation, and if taxes are necessary to retire existing debt,
13-3 the regional utility shall continue to assess and collect the
13-4 taxes, but the regional utility shall not increase tax rates in the
13-5 district in order to retire debts of the district unless such
13-6 increase is authorized as provided by existing law.
13-7 (f) Consolidation shall be achieved in such a way that it
13-8 does not actually violate any existing bond covenants or other
13-9 existing contractual obligations of the city, its public service
13-10 board, or any district and does not adversely affect their bond
13-11 rating.
13-12 (g) The regional utility may apply to the Texas Water
13-13 Development Board for up to $3 million appropriated during the
13-14 1994-95 biennium for grants or loans to encourage and facilitate
13-15 the regionalization of water and wastewater services in counties
13-16 directly adjacent to the international border with Mexico through
13-17 Section 15.102 Water Code. Any funds awarded pursuant to this
13-18 provision shall be used by the regional utility to purchase and
13-19 refinance district debt in order to achieve a reasonable cost of
13-20 service to existing customers and facilitate consolidation of water
13-21 and wastewater services in the county.
13-22 SECTION 7. UTILITY SERVICE RATES.
13-23 (a) The regional utility shall have the authority to charge
13-24 persons receiving utility service in the expanded service areas,
13-25 such rates for the sources allowed by law. Notwithstanding Section
14-1 16.349(b) of the Texas Water Code, the regional utility may charges
14-2 persons in an area outside the corporate boundaries of the city
14-3 rates for utility service actually provided even though the rate so
14-4 charged may exceed the rate paid by ratepayers inside the corporate
14-5 boundaries of the city for the utility service.
14-6 (b) In no event shall the regional utility increase the
14-7 rates charged for utility service to ratepayers within the
14-8 corporate boundaries of the city for the purpose of providing
14-9 utility service or reducing the rates charges for utility service
14-10 to ratepayers outside the corporate boundaries of the city. In no
14-11 event shall any revenue generated from the rates charged customers
14-12 outside the city be paid to or deposited in the general revenue
14-13 fund of the city except as required by any existing bond covenant.
14-14 SECTION 8. PROVISION OF UTILITY SERVICE.
14-15 (a) As a condition of providing utility service, the
14-16 regional utility may require that all development in the county
14-17 meet the minimum construction and development standards established
14-18 for economically distressed areas in the Water Code and in the
14-19 Rules of the Texas Water Development Board.
14-20 (b) Upon consolidation of a district into the regional
14-21 utility, the regional utility shall be required to provide utility
14-22 service to those residents of the district. The regional utility
14-23 shall provide for the extension of service to existing customers
14-24 and any new customers within the consolidated district pursuant to
14-25 the provisions of the regional water supply and wastewater
15-1 facilities plan developed pursuant to Section 3(b) of this act.
15-2 Notwithstanding any other provision in this act, any water supply
15-3 or wastewater facilities being constructed or designed on the
15-4 effective date of this act shall be continued by the regional
15-5 utility uninterrupted by any delay and be incorporated into the
15-6 regional water supply and wastewater facilities plan developed
15-7 pursuant to Section 3(b) of this act.
15-8 (c) In order to plan for regional utility service within the
15-9 county, the regional shall include land which belongs to the
15-10 permanent school fund of the state within a regional plan. In such
15-11 event, the provisions of a regional plan shall be binding upon
15-12 permanent school fund land only after the regional utility provides
15-13 acceptable utility service commitments to the affected land and
15-14 obtains the written consent of the school land board in accordance
15-15 with its Rules and Regulations.
15-16 SECTION 9. SEVERABILITY AND CONSTRUCTION. If any provision
15-17 of this Act or the application thereof to any person or
15-18 circumstances be held invalid, such invalidity shall not affect
15-19 other provisions or applications of this Act that can be given
15-20 effect without the invalid provision or application, and to this
15-21 end the provisions of this Act are declared to be severable. All
15-22 the terms and provisions of this Act are declared to be severable.
15-23 All the terms and provisions of this Act are to be liberally
15-24 construed to effectuate the purpose, powers, rights, functions, and
15-25 authorities herein set forth.
16-1 SECTION 10. DECLARATION OF EMERGENCY. The importance of
16-2 this legislation and the crowded condition of the calendars in both
16-3 houses create an emergency and an imperative public necessity that
16-4 the constitutional rule requiring bills to be read on three several
16-5 days in each house be suspended, and this rule is hereby suspended
16-6 and this act shall be effective on September 1, 1993.