By: Rosson S.B. No. 1374
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regionalization of utility services in El Paso
1-2 County by providing for consolidation of certain water and
1-3 wastewater service corporations and utility districts into a
1-4 regional utility, and methods for planning, funding, including the
1-5 issuance of bonds, and operation of a regional utility.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. DEFINITIONS. In this Act:
1-8 (1) "Assets" means all physical assets, contract
1-9 rights, water rights, and all other rights or privileges of any
1-10 kind or nature which belong to a district.
1-11 (2) "City" means the City of El Paso, a home-rule city
1-12 pursuant to the laws of the State of Texas.
1-13 (3) "City's municipal jurisdiction" means the city's
1-14 authority within the city limits and the extraterritorial
1-15 jurisdiction of the city.
1-16 (4) "Commission" means the Texas Natural Resource
1-17 Conservation Commission.
1-18 (5) "Committee" means the interim and permanent
1-19 Regional Utility Advisory Committee as hereinafter created.
1-20 (6) "County" means El Paso County.
1-21 (7) "Debts" means bonded indebtedness and all
1-22 contractual obligations, claims, judgments, and contingent
1-23 liabilities for which a person or entity is legally liable.
2-1 (8) "Districts" means the following: Deerfield Park
2-2 Water Supply Corporation, East El Paso Water Supply Corporation, El
2-3 Paso County Lower Valley Water District Authority, El Paso County
2-4 Water Authority, El Paso County Water Control and Improvement
2-5 District No. 4, El Paso County Tornillo Water Improvement District,
2-6 El Paso County Water Control and Improvement District--Westway,
2-7 Homestead Municipal Utility District, Haciendas del Norte Water
2-8 Improvement District, San Elizario Grant Municipal Utility
2-9 District, Tornillo Water Supply Corporation, any other water supply
2-10 corporation, or any other district in the county created by
2-11 Article XVI, Section 59, of the Texas Constitution providing
2-12 utility service as defined herein and located in the county, but
2-13 excluding the El Paso County Water Improvement District No. 1.
2-14 (9) "PSB" means the Public Service Board, a board of
2-15 trustees having management and control of the water and wastewater
2-16 utility systems of the city as established through the encumbrances
2-17 of the system as provided in Article 1115, Revised Statutes,
2-18 Ordinance No. 752 (May 22, 1952) and any subsequent ordinance
2-19 adopted by the city authorizing the issuance of water and
2-20 wastewater system revenue bonds.
2-21 (10) "Regional utility" means the city, acting through
2-22 its water and wastewater utility systems.
2-23 (11) "Regional service" means water and wastewater
2-24 services.
2-25 SECTION 2. PURPOSES OF ACT. The purposes of this Act are:
3-1 (1) to encourage and provide for the orderly
3-2 consolidation of the districts in the county into a regional
3-3 utility in order to:
3-4 (A) ensure the provision of utility services to
3-5 all residents of the county at the lowest possible cost according
3-6 to a regional plan;
3-7 (B) eliminate unnecessary competition by the
3-8 districts for limited water, financial, and other valuable
3-9 resources;
3-10 (C) take advantage of economies of scale with
3-11 regard to the provision of utility services in the county; and
3-12 (D) conjunctively manage the limited resources
3-13 of surface water and groundwater of the county so that the
3-14 integrity and quality of these limited resources are protected and
3-15 extended to the greatest extent reasonably possible;
3-16 (2) to enable the city, acting through its water and
3-17 wastewater utility as managed and operated by the PSB, or the city
3-18 council as the case may be, to operate as the regional utility in
3-19 the county;
3-20 (3) to give the regional utility the authority to
3-21 plan, operate, and provide for utility services on a regional
3-22 basis;
3-23 (4) to provide a framework for the management and
3-24 operation of a regional utility within and outside of the city's
3-25 municipal jurisdiction;
4-1 (5) to provide for the assumption of the assets and
4-2 debts of the districts on consolidation into a regional utility;
4-3 and
4-4 (6) to authorize the regional utility to provide water
4-5 and wastewater services outside of the extraterritorial
4-6 jurisdiction of the city with the ability to contract and to issue
4-7 its bonds to buy, own, and construct facilities outside of the
4-8 municipal jurisdiction.
4-9 SECTION 3. DESIGNATION OF CITY AS EL PASO COUNTY REGIONAL
4-10 UTILITY. (a) On the enactment of an enabling resolution by the
4-11 City Council of the City of El Paso, the city, through its water
4-12 and wastewater utility systems as managed by its PSB or by the city
4-13 council, as the case may be, is hereby designated as the regional
4-14 utility provider in the county for the purpose of providing utility
4-15 services within the county. After the enactment of the enabling
4-16 resolution by the City Council of the City of El Paso, the
4-17 obligation of the regional utility to act as the regional utility
4-18 provider as provided by the terms of this Act shall continue in
4-19 full force and effect and shall only be amended or abolished by the
4-20 Legislature of the State of Texas.
4-21 (b) On enactment of the enabling resolution of the city
4-22 council of the city or on the effective date of this Act, whichever
4-23 is later, the regional utility shall:
4-24 (1) file an application with the Texas Water
4-25 Development Board for a regional water supply and wastewater
5-1 facilities planning grant study pursuant to the provisions of
5-2 Section 15.406, Water Code, and the applicable rules promulgated by
5-3 the Texas Water Development Board. In the event of approval of the
5-4 application by the Texas Water Development Board pursuant to the
5-5 statute and rules, the regional utility shall enter into a contract
5-6 with the Texas Water Development Board to conduct a regional water
5-7 supply and wastewater facilities planning study which shall include
5-8 all of the county and incorporate any water supply and wastewater
5-9 facilities currently being designed or constructed in the county.
5-10 Results of this planning effort shall be completed within 12 months
5-11 after execution of a contract with the Texas Water Development
5-12 Board and shall result in a plan which shall include an
5-13 implementation schedule and associated preliminary costs for water
5-14 and wastewater facilities to provide service and a financial plan
5-15 and rate study to meet the projected water and wastewater needs
5-16 within the county to the year 2040. The regional utility shall
5-17 review the plan every five years to consider any amendment or
5-18 modification that may be needed because of changed conditions. The
5-19 regional utility shall amend or modify the plan as experience and
5-20 changed conditions require. Any such amendment or modification
5-21 becomes a part of the plan; and
5-22 (2) file an application with the Texas Water
5-23 Development Board for a regional water supply planning grant
5-24 pursuant to the provisions of Section 15.406, Water Code, and the
5-25 applicable rules promulgated by the Texas Water Development Board.
6-1 In the event of approval of the application by the Texas Water
6-2 Development Board pursuant to the applicable statute and rules, the
6-3 regional utility shall enter into a contract with the Texas Water
6-4 Development Board for the preparation of a regional water supply
6-5 planning study which shall include all of the county. Results of
6-6 the planning effort shall be completed within six months after
6-7 execution of a contract with the Texas Water Development Board and
6-8 shall result in a plan which shall identify projected water demands
6-9 and available and potential supplies to meet the water supply needs
6-10 within the county to the year 2040.
6-11 (c) Subject to the provisions of all outstanding water or
6-12 wastewater system revenue bonds of the city, the regional utility
6-13 shall serve any area or areas within the county, is hereby
6-14 designated as the utility service provider within the county, and
6-15 shall receive priority consideration for purposes of state funding.
6-16 (d) As the regional utility provider, the regional utility
6-17 shall receive priority consideration for purposes of state funding
6-18 of regional planning for the provision of utility service outside
6-19 the city's municipal jurisdiction. The regional utility may enter
6-20 into agreements and cooperative projects with political
6-21 subdivisions and other governmental entities in this state, the
6-22 State of New Mexico, the International Boundary and Water
6-23 Commission, and the Republic of Mexico or any responsible political
6-24 subdivision thereof to:
6-25 (1) promote regional planning for the provision of
7-1 utility services;
7-2 (2) promote regional planning which is consistent with
7-3 the United States-Mexico integrated border plan;
7-4 (3) coordinate the regional planning with the
7-5 comprehensive state water plan;
7-6 (4) finance or seek financing for the water and
7-7 wastewater infrastructure, especially in economically distressed
7-8 areas;
7-9 (5) provide for regional drought and water supply
7-10 management;
7-11 (6) collect and disseminate water and wastewater
7-12 regional data;
7-13 (7) coordinate state level financial and technical
7-14 assistance in extending or creating water and wastewater service;
7-15 (8) promote conservation planning, education, and
7-16 research of surface water and groundwater resources;
7-17 (9) promote preservation of human health and the
7-18 environment;
7-19 (10) promote water quality; and
7-20 (11) accomplish any other related regional utility
7-21 purpose.
7-22 SECTION 4. ORGANIZATION OF THE REGIONAL UTILITY ADVISORY
7-23 COMMITTEE. (a) Within 30 days of the resolution of the city
7-24 council provided for in Subsection (a) of Section 3 of this Act
7-25 there shall be created a committee known as the Regional Utility
8-1 Advisory Committee, consisting during the first terms of office of
8-2 nine appointed members. Of these nine members, the commissioners
8-3 court of the county shall appoint five members and the city shall
8-4 appoint four members. Of the five members appointed by the
8-5 commissioners court:
8-6 (1) one appointee shall be a qualified voter residing
8-7 within the jurisdiction of the El Paso County Lower Valley Water
8-8 District Authority;
8-9 (2) one appointee shall be a qualified voter residing
8-10 within the jurisdiction of the El Paso County Water Authority;
8-11 (3) one appointee shall be a qualified voter residing
8-12 within the jurisdiction of either the El Paso County Water Control
8-13 and Improvement District--Westway or the City of Anthony Water
8-14 Utility;
8-15 (4) one appointee shall be a qualified voter residing
8-16 within the jurisdiction or the service area of Deerfield Park Water
8-17 Supply Corporation, East El Paso Water Supply Corporation,
8-18 Homestead Municipal Utility District, or Haciendas del Norte Water
8-19 Improvement District; and
8-20 (5) one appointee shall be a qualified voter residing
8-21 within the jurisdiction or service area of El Paso County Tornillo
8-22 Water Improvement District, Tornillo Water Supply Corporation, El
8-23 Paso County Water Control and Improvement District No. 4, or San
8-24 Elizario Grant Municipal Utility District.
8-25 (b) The terms for these interim committee members shall be
9-1 three years. After the expiration of the terms of office of the
9-2 interim nine-member committee, the permanent committee shall
9-3 consist of seven members, five of whom are to be appointed by the
9-4 commissioners court of the county and two of whom are to be jointly
9-5 appointed by the mayors of the incorporated municipalities, other
9-6 than the city, within the county. The duties of both the interim
9-7 and permanent committees shall be to act as an advisory body to the
9-8 regional utility on matters related to:
9-9 (1) the priorities in the provision of utility
9-10 services;
9-11 (2) the rates and charges for the services outside of
9-12 the corporate limits of the city;
9-13 (3) regional planning;
9-14 (4) adoption of or amendments to rules and regulations
9-15 affecting provision of utility service outside of the corporate
9-16 limits of the city; and
9-17 (5) any other matter requested by the regional
9-18 authority.
9-19 (c) Each member of the permanent committee appointed by the
9-20 commissioners court of the county shall be a qualified voter
9-21 residing within the county and outside the city's municipal
9-22 jurisdiction. Each member of the committee appointed by the mayors
9-23 of the other incorporated cities within the county shall be a
9-24 qualified voter residing within the county and within one or the
9-25 other of the incorporated municipalities other than the city. Each
10-1 member of both the interim and permanent committees shall also be
10-2 over 18 years of age and shall have resided in the county for a
10-3 minimum of six months immediately prior to the date of appointment.
10-4 (d) Two of the members of the permanent committee appointed
10-5 by the commissioners court of the county and the two members
10-6 appointed by the mayors of the incorporated municipalities in the
10-7 county shall serve for three years. All other members of the
10-8 permanent committee, after the first term of the first four members
10-9 of the permanent committee, shall be appointed to serve two-year
10-10 terms. A vacancy on the permanent committee shall be filled by
10-11 appointment for the unexpired term by the commissioners court or
10-12 the mayors of the incorporated municipalities, whichever appointed
10-13 the member whose seat was vacated.
10-14 (e) A person is disqualified from serving as a member of
10-15 either committee if:
10-16 (1) he is related within the third degree of affinity
10-17 or consanguinity to:
10-18 (A) a developer of property in the county;
10-19 (B) any elected official of the city or county;
10-20 (C) any manager of the regional utility; or
10-21 (D) any other member of the committee;
10-22 (2) he is an employee or officer of:
10-23 (A) any developer of property in the county;
10-24 (B) any elected official of the city, other
10-25 incorporated cities within the county, or the county;
11-1 (C) any manager of the regional utility; or
11-2 (D) any manager, engineer, or attorney for a
11-3 district, the county, the city, or other incorporated municipality
11-4 within the county;
11-5 (3) he is a developer of property in the county;
11-6 (4) he is serving as an attorney, consultant,
11-7 engineer, manager, architect, or in some other professional
11-8 capacity for the regional utility, the county, a district or an
11-9 incorporated city within the county, or for a developer of property
11-10 within the county in connection with the regional utility service;
11-11 or
11-12 (5) he is a party to a contract with or along with the
11-13 regional utility except for the purchase of public services
11-14 furnished by the regional utility to the public generally.
11-15 SECTION 5. ADDITIONAL RIGHTS AND POWERS OF THE REGIONAL
11-16 UTILITY. (a) For the purposes of providing utility service and
11-17 operating a regional utility in the county, the regional utility
11-18 shall have all powers and authority provided in Sections 402.001
11-19 and 402.002, Local Government Code. The regional utility shall
11-20 specifically have the authority to apply for and obtain grants and
11-21 loans for the purpose of providing utility service outside of the
11-22 city's municipal jurisdiction and for the purpose of funding and
11-23 providing for regional projects with other states and the Republic
11-24 of Mexico. This Act authorizes the regional utility pursuant to
11-25 the regional water supply and wastewater facilities plan prepared
12-1 pursuant to Subsection (b) of Section 3 of this Act to:
12-2 (1) contract with other local governments,
12-3 municipalities, districts, river authorities, or other state or
12-4 governmental entities within this state, within other states, or
12-5 within the Republic of Mexico;
12-6 (2) obtain grants and loans to provide utility service
12-7 outside of the city's municipal jurisdiction;
12-8 (3) provide for planning and construction of regional
12-9 projects including water supply or wastewater treatment facilities;
12-10 and
12-11 (4) otherwise promote the regionalization of utility
12-12 services within the county and surrounding areas.
12-13 (b)(1) For the purposes of providing utility service and
12-14 operating a regional utility in the county outside of the municipal
12-15 jurisdiction of the city, the regional utility may issue its
12-16 revenue bonds, notes, revenue anticipation notes, bond anticipation
12-17 notes, short-term obligations, refunding bonds, or other
12-18 obligations for any of its purposes without an election and on
12-19 terms the city council of the city determines to be appropriate.
12-20 (2) Obligations may be made payable from all or part
12-21 of the revenues of the regional utility derived from any lawful
12-22 source, including any contract with any customer or user of the
12-23 facilities owned or operated by the regional utility under this Act
12-24 or from the ownership and operation of any waterworks system,
12-25 wastewater system, sewer system, solid waste disposal system,
13-1 nonhazardous liquid waste system, or any combination of those
13-2 systems. Additionally, those obligations may be paid from and
13-3 secured by liens on and pledges of all or part of any of the
13-4 revenue, income, or receipts derived by the regional utility from
13-5 its ownership, operation, lease, or sale of the property,
13-6 buildings, structures, or facilities, including the proceeds or
13-7 revenues from contracts with any person, firm, corporation,
13-8 municipality, public agency, or other political subdivision or
13-9 entity.
13-10 (3) Bonds or other obligations may be issued to mature
13-11 serially or otherwise in not to exceed 40 years from their date of
13-12 issuance, and provision may be made for the subsequent issuance of
13-13 additional parity obligations or subordinate lien obligations under
13-14 terms or conditions that may be set forth in the ordinance
13-15 authorizing the issuance of the obligations.
13-16 (4) The bonds or other obligations are negotiable
13-17 instruments within the meaning of Chapter 8, Business & Commerce
13-18 Code.
13-19 (5) The bonds or other obligations shall be executed
13-20 and made redeemable before maturity, issued in the form,
13-21 denominations, and manner and under the terms, conditions, and
13-22 details, and sold in the manner, at the price, and under the terms
13-23 provided by the bond ordinance.
13-24 (6) The bonds or other obligations shall bear interest
13-25 at rates provided in the ordinance authorizing the issue of the
14-1 bonds or other obligations.
14-2 (7) If provided in the bond ordinance, the proceeds
14-3 from the sale of the bonds or other obligations may be used for
14-4 paying interest on those bonds or other obligations during the
14-5 period of the acquisition or construction of any facilities to be
14-6 provided through the issuance of the bonds or other obligations,
14-7 paying expenses of operation and maintenance of facilities,
14-8 creating a reserve fund for the payment of principal of and
14-9 interest on the bonds or other obligations, and creating any other
14-10 funds.
14-11 (8) The proceeds from the sale of the bonds or other
14-12 obligations may be placed on time deposit or invested to the extent
14-13 and in the manner provided by the bond ordinance.
14-14 (9) The regional utility may pledge all or any part of
14-15 its revenue, income, or receipts from fees, rentals, rates,
14-16 charges, or contract proceeds or payments to the payment of such
14-17 bonds or other obligations, including the payment of principal,
14-18 interest, and any other amounts required or permitted in connection
14-19 with the bonds or other obligations. The pledged fees, rentals,
14-20 rates, charges, proceeds, or payments shall be established and
14-21 collected in amounts that will be at least sufficient, together
14-22 with any other pledged resources, to provide for the payment of
14-23 expenses in connection with the bonds or other obligations and for
14-24 the operation, maintenance, and other expenses in connection with
14-25 those facilities.
15-1 (10) Such bonds and other obligations may be
15-2 additionally secured by mortgages or deeds of trust on real
15-3 property owned or to be acquired by the regional utility and by
15-4 chattel mortgages or liens on any personal property appurtenant to
15-5 the real property. The regional utility may authorize the
15-6 execution of trust indentures, mortgages, deeds of trust, or other
15-7 forms of encumbrances. It may pledge to the payment of the
15-8 obligations all or any part of any grant, donation, revenue, or
15-9 income received or to be received from the United States government
15-10 or any other public or private source.
15-11 (11) The regional utility is the issuer within the
15-12 meaning of Chapter 53, Acts of the 70th Legislature, 2nd Called
15-13 Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes), and
15-14 bonds issued pursuant to this Act and the appropriate proceedings
15-15 authorizing their issuance must be submitted to the attorney
15-16 general for examination if required to be submitted by Chapter 53,
15-17 Acts of the 70th Legislature, 2nd Called Session, 1987 (Article
15-18 717k-8, Vernon's Texas Civil Statutes). If the bonds recite that
15-19 they are secured by a pledge of revenue from a contract, a copy of
15-20 the contract and the proceedings relating to the contract must be
15-21 submitted to the attorney general. If the attorney general finds
15-22 that the bonds are authorized and the contract is entered in
15-23 accordance with law, the attorney general shall approve the bonds
15-24 and the contract, and the bonds shall be registered by the
15-25 comptroller. After approval and registration, the bonds and the
16-1 contract are incontestable in any court or other forum for any
16-2 reason and are valid and binding obligations in accordance with
16-3 their terms for all purposes.
16-4 (12) The regional utility shall issue its bonds and
16-5 other obligations in accordance with Chapter 656, Acts of the 68th
16-6 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
16-7 Civil Statutes), and the Bond Procedures Act of 1981 (Article
16-8 717k-6, Vernon's Texas Civil Statutes), as applicable.
16-9 (c)(1) The regional utility may enter into contracts with
16-10 any public or private party or body considered necessary in the
16-11 exercise of the powers and purposes of the regional utility under
16-12 this Act. This authority shall extend to those areas outside of
16-13 the municipal jurisdiction of the city.
16-14 (2) Pursuant to provisions of Subdivision (1) of this
16-15 subsection, the regional utility may enter into contracts for the
16-16 acquisition, purchase, rental, lease, or operations of the water
16-17 production, water supply, water filtration or purification, water
16-18 supply facilities, or other water or wastewater facilities that are
16-19 owned or operated by the contracting party.
16-20 (3) Contracts that require a payment of money by the
16-21 regional utility may be made payable from any general or specific
16-22 source of funds.
16-23 (d) So long as the regional utility complies with Chapter
16-24 13, Water Code, and the applicable provisions of Section 6 of this
16-25 Act and except as expressly limited in this Act, the rights and
17-1 powers described in this Act shall prevail over any limitations
17-2 contained in any other law.
17-3 (e) Notwithstanding any other provisions of this Act, this
17-4 Act shall not operate to authorize the regional utility to condemn
17-5 land owned by the state and shall not authorize the regional
17-6 utility to condemn land or assets owned by any other political
17-7 subdivision of the state outside of the city's municipal
17-8 jurisdiction including the districts.
17-9 (f) Except to the extent of any tax obligation imposed by
17-10 any district and necessary to retire any debt existing on the date
17-11 of consolidation as hereinafter provided, this Act shall not
17-12 operate to allow the regional utility to tax property outside of
17-13 the city's corporate limits.
17-14 SECTION 6. CONSOLIDATION OF DISTRICTS. (a) The regional
17-15 utility shall have the authority to consolidate one or more of the
17-16 districts into the regional utility on the occurrence of one or
17-17 more of the following events:
17-18 (1) a majority vote of the membership of a district
17-19 operating as a water supply corporation or a majority vote of the
17-20 board of directors of an investor-owned utility;
17-21 (2) a majority vote of the board of directors of a
17-22 district other than a water supply corporation to dissolve the
17-23 district by consolidation into the regional utility, followed by an
17-24 election in the district, at the earliest available uniform
17-25 election date, at which a majority of the voters voting in the
18-1 election vote to dissolve the district by consolidation into the
18-2 regional utility;
18-3 (3) on the filing of a petition with the county judge
18-4 signed by 10 percent of the registered voters of the subject
18-5 district, other than a water supply corporation, followed by an
18-6 election on an order by the board of directors of the district. An
18-7 election held in accordance with this procedure must be held on the
18-8 next available uniform election date following certification of the
18-9 petition in accordance with Section 41.001, Election Code.
18-10 (b) Notwithstanding the occurrence of a vote or election as
18-11 provided in Subsection (a) of this section, as to each district
18-12 with bonds, notes, obligations, or taxes owed, contracted, or
18-13 authorized at the time of the district's vote into the regional
18-14 utility, consolidation of a district into the regional utility
18-15 shall not be final and effective until:
18-16 (1) the boards of directors of the regional utility
18-17 and the district have entered into a consolidation agreement;
18-18 (2) as to each district other than a district
18-19 operating as a water supply corporation, the board has ordered and
18-20 held an election in the district at which a majority of voters
18-21 voting in the election approved the terms and conditions of the
18-22 consolidation agreement;
18-23 (3) the district's debts, bonds, notes, obligations
18-24 and taxes, as applicable, have been paid in full, assumed, or
18-25 satisfactorily addressed in the consolidation agreement; and
19-1 (4) a regional utility consolidation order has been
19-2 filed by the regional utility in the real property records of the
19-3 county and the Texas Water Commission.
19-4 (c) If an election is required to be held in a district for
19-5 the purposes of consolidation into the regional utility, then the
19-6 election shall be held in conformity with the Election Code, as
19-7 amended, or the Texas Non-Profit Corporation Act (Article 1396-1.01
19-8 et seq., Vernon's Texas Civil Statutes), and all applicable
19-9 election law.
19-10 (d) At all times prior to final consolidation of a district
19-11 which has debts or other obligations which may be owed, contracted,
19-12 or authorized, the district shall:
19-13 (1) protect the assets of the district and ensure that
19-14 they are not impaired;
19-15 (2) where applicable and necessary, assess and collect
19-16 taxes on property in the district to pay debts created by the
19-17 district; and
19-18 (3) pay debts of the district and manage the assets of
19-19 the district through the sale, lease, or other management of
19-20 district lands.
19-21 (e) If taxes were levied on land within a district
19-22 consolidated into the regional utility at the time of consolidation
19-23 and if taxes are necessary to retire existing debt, the regional
19-24 utility shall continue to assess and collect the taxes, but the
19-25 regional utility shall not increase tax rates in the district in
20-1 order to retire debts of the district unless such increase is
20-2 authorized as provided by existing law.
20-3 (f) Consolidation shall be achieved in such a way that it
20-4 does not violate existing bond covenants and other contractual
20-5 obligations of the city and its public service board or any
20-6 district and does not adversely affect their bond ratings.
20-7 (g) The regional utility may apply to the Texas Water
20-8 Development Board for up to $3 million appropriated during the
20-9 1994-1995 biennium for grants or loans to encourage and facilitate
20-10 the regionalization of water and wastewater services in counties
20-11 directly adjacent to the international border with the Republic of
20-12 Mexico through Section 15.102, Water Code. Any funds awarded
20-13 pursuant to this provision shall be used by the regional utility to
20-14 purchase and refinance district debt in order to achieve a
20-15 reasonable cost of service to existing customers and facilitate
20-16 consolidation of water and wastewater services in the county.
20-17 SECTION 7. UTILITY SERVICE RATES. (a) The regional utility
20-18 may establish fees and charges for initiating service to service
20-19 applicants and rates, fees, and charges for utility service
20-20 provided to retail customers in the expanded service area or to
20-21 wholesale customers outside the expanded service areas.
20-22 Notwithstanding Subsection (b), Section 16.349, Water Code, the
20-23 regional utility may charge retail service applicants and customers
20-24 in an area outside the corporate boundaries of the city rates for
20-25 utility service actually provided based on the actual, documentable
21-1 cost of providing that service even if the rates so charged exceed
21-2 the rates charged by the utility to ratepayers inside the corporate
21-3 boundaries of the city.
21-4 (b) The regional utility shall not use utility revenues
21-5 received from ratepayers inside the corporate boundaries of the
21-6 city to subsidize costs of providing utility service to ratepayers
21-7 outside the boundaries of the city nor shall it use utility
21-8 revenues received from retail ratepayers outside the city to
21-9 subsidize costs of providing utility service inside the city. The
21-10 utility shall not pay to or deposit in the general revenue fund
21-11 revenues received from the rates charged to retail customers
21-12 outside the city except as required by any existing bond covenant
21-13 or by any future bond covenant unless the new bonds which are
21-14 issued are used to fund utility services to ratepayers outside the
21-15 corporate boundaries of the city.
21-16 (c) Ratepayers of the regional utility residing outside the
21-17 boundaries of the city shall have all rights provided in Chapter
21-18 13, Water Code, as applicable.
21-19 SECTION 8. PROVISION OF UTILITY SERVICE. (a) As a
21-20 condition of providing utility service, the regional utility may
21-21 require that all development in the county meet the minimum
21-22 construction and development standards established by the Texas
21-23 Water Development Board for economically distressed areas in
21-24 accordance with Section 16.343, Water Code, as adopted by the
21-25 county, and comply with the Rules and Regulation Number 11 of the
22-1 PSB concerning extension of utility services outside of the city
22-2 limits to the extent that they do not conflict with any provisions
22-3 of this Act and the plans developed pursuant to Subsection (b) of
22-4 Section 3 of this Act.
22-5 (b) On consolidation of a district into the regional
22-6 utility, the regional utility shall be required to provide utility
22-7 service to those residents of the district pursuant to the
22-8 provisions of the regional water supply and wastewater facilities
22-9 plan developed pursuant to Subsection (b) of Section 3 of this Act.
22-10 Notwithstanding any other provision in this Act, any water supply
22-11 or wastewater facilities being constructed or designed on the
22-12 effective date of this Act through grants from the Texas Water
22-13 Development Board or Farmers Home Administration shall be continued
22-14 by the regional utility uninterrupted by any delay and be
22-15 incorporated into the regional water supply and wastewater
22-16 facilities plan developed pursuant to Subsection (b) of Section 3
22-17 of this Act.
22-18 (c) In order to plan for regional utility service within the
22-19 county, the regional utility shall include land which belongs to
22-20 the permanent school fund of the state within a regional plan. In
22-21 such event, the provisions of a regional plan shall be binding on
22-22 permanent school fund land only after the regional utility provides
22-23 acceptable utility service commitments to the affected land and
22-24 obtains the written consent of the School Land Board in accordance
22-25 with its rules and regulations.
23-1 SECTION 9. SEVERABILITY AND CONSTRUCTION. (a) If any
23-2 provisions of this Act or the application thereof to any person or
23-3 circumstance is held invalid, such invalidity shall not affect
23-4 other provisions or applications of this Act that can be given
23-5 effect without the invalid provision or application, and to this
23-6 end the provisions of this Act are declared to be severable. All
23-7 the terms and provisions of this Act are declared severable. All
23-8 the terms and provisions of this Act are to be liberally construed
23-9 to effectuate the purposes, powers, rights, functions, and
23-10 authorities herein set forth.
23-11 (b) Nothing contained in this Act shall be construed to
23-12 limit the power of the governing body of the city to control the
23-13 governing body of the city's water and wastewater utility systems
23-14 as provided for in Articles 1111 and 1115, Revised Statutes.
23-15 (c) Nothing contained in this Act shall be construed to
23-16 require the city or the governing body of the city's water and
23-17 wastewater utility systems to provide services other than the water
23-18 and wastewater services described herein.
23-19 SECTION 10. The importance of this legislation and the
23-20 crowded condition of the calendars in both houses create an
23-21 emergency and an imperative public necessity that the
23-22 constitutional rule requiring bills to be read on three several
23-23 days in each house be suspended, and this rule is hereby suspended,
23-24 and that this Act take effect and be in force from and after its
23-25 passage, and it is so enacted.