73R11368 E
By Rosson S.B. No. 1374
Substitute the following for S.B. No. 1374:
By Counts C.S.S.B. No. 1374
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regionalization of utility services in El Paso
1-3 County by providing 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, including the
1-6 issuance of bonds, and operation of a regional utility.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. DEFINITIONS. In this Act:
1-9 (1) "Assets" means all physical assets, contract
1-10 rights, water rights, and all other rights or privileges of any
1-11 kind or nature which belong to a district.
1-12 (2) "City" means the city of El Paso, a home-rule city
1-13 pursuant to the laws of the State of Texas.
1-14 (3) "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 (4) "Commission" means the Texas Natural Resource
1-18 Conservation Commission.
1-19 (5) "Committee" means the interim and permanent
1-20 Regional Utility Advisory Committee as hereinafter created.
1-21 (6) "County" means El Paso County.
1-22 (7) "Debts" means bonded indebtedness and all
1-23 contractual obligations, claims, judgments, and contingent
1-24 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:
2-26 (1) to encourage and provide for the orderly
2-27 consolidation of the districts in the county into a regional
3-1 utility in order to:
3-2 (A) ensure the provision of utility services to
3-3 all residents of the county at the lowest possible cost according
3-4 to a regional plan;
3-5 (B) eliminate unnecessary competition by the
3-6 districts for limited water, financial, and other valuable
3-7 resources;
3-8 (C) take advantage of economies of scale with
3-9 regard to the provision of utility services in the county; and
3-10 (D) conjunctively manage the limited resources
3-11 of surface water and groundwater of the county so that the
3-12 integrity and quality of these limited resources are protected and
3-13 extended to the greatest extent reasonably possible;
3-14 (2) to enable the city, acting through its water and
3-15 wastewater utility as managed and operated by the PSB, or the city
3-16 council as the case may be, to operate as the regional utility in
3-17 the county;
3-18 (3) to give the regional utility the authority to
3-19 plan, operate, and provide for utility services on a regional
3-20 basis;
3-21 (4) to provide a framework for the management and
3-22 operation of a regional utility within and outside of the city's
3-23 municipal jurisdiction;
3-24 (5) to provide for the assumption of the assets and
3-25 debts of the districts on consolidation into a regional utility;
3-26 and
3-27 (6) to authorize the regional utility to provide water
4-1 and wastewater services outside of the extraterritorial
4-2 jurisdiction of the city with the ability to contract and to issue
4-3 its bonds to buy, own, and construct facilities outside of the
4-4 municipal jurisdiction.
4-5 SECTION 3. DESIGNATION OF CITY AS EL PASO COUNTY REGIONAL
4-6 UTILITY. (a) The city of El Paso, through its water and
4-7 wastewater utility systems as managed by its PSB or by the city
4-8 council, as the case may be, is hereby designated as the regional
4-9 utility provider in the county for the purpose of providing utility
4-10 services within the county. The obligation of the regional utility
4-11 to act as the regional utility provider as provided by the terms of
4-12 this Act shall continue in full force and effect and shall only be
4-13 amended or abolished by the legislature of the State of Texas.
4-14 (b) The regional utility shall:
4-15 (1) file an application with the Texas Water
4-16 Development Board for a regional water supply and wastewater
4-17 facilities planning grant study pursuant to the provisions of
4-18 Section 15.406, Water Code, and the applicable rules promulgated by
4-19 the Texas Water Development Board. In the event of approval of the
4-20 application by the Texas Water Development Board pursuant to the
4-21 statute and rules, the regional utility shall enter into a contract
4-22 with the Texas Water Development Board to conduct a regional water
4-23 supply and wastewater facilities planning study that shall include
4-24 all of the county and incorporate any water supply and wastewater
4-25 facilities currently being designed or constructed in the county.
4-26 Results of this planning effort shall be completed within 12 months
4-27 after execution of a contract with the Texas Water Development
5-1 Board and shall result in a plan that shall include an
5-2 implementation schedule and associated preliminary costs for water
5-3 and wastewater facilities to provide service and a financial plan
5-4 and rate study to meet the projected water and wastewater needs
5-5 within the county to the year 2040. The regional utility shall
5-6 review the plan every five years to consider any amendment or
5-7 modification that may be needed because of changed conditions. The
5-8 regional utility shall amend or modify the plan as experience and
5-9 changed conditions require. Any such amendment or modification
5-10 becomes a part of the plan; and
5-11 (2) file an application with the Texas Water
5-12 Development Board for a regional water supply planning grant
5-13 pursuant to the provisions of Section 15.406, Water Code, and the
5-14 applicable rules promulgated by the Texas Water Development Board.
5-15 In the event of approval of the application by the Texas Water
5-16 Development Board pursuant to the applicable statute and rules, the
5-17 regional utility shall enter into a contract with the Texas Water
5-18 Development Board for the preparation of a regional water supply
5-19 planning study that shall include all of the county. Results of
5-20 the planning effort shall be completed within six months after
5-21 execution of a contract with the Texas Water Development Board and
5-22 shall result in a plan that shall identify projected water demands
5-23 and available and potential supplies to meet the water supply needs
5-24 within the county to the year 2040.
5-25 (c) Subject to the provisions of all outstanding water or
5-26 wastewater system revenue bonds of the city, the regional utility
5-27 shall serve any area or areas within the county and is hereby
6-1 designated as the utility service provider within the county.
6-2 (d) The regional utility may enter into agreements and
6-3 cooperative projects with political subdivisions and other
6-4 governmental entities in this state, the State of New Mexico, the
6-5 International Boundary and Water Commission, and the Republic of
6-6 Mexico or any responsible political subdivision thereof to:
6-7 (1) promote regional planning for the provision of
6-8 utility services;
6-9 (2) promote regional planning that is consistent with
6-10 the United States-Mexico integrated border plan;
6-11 (3) coordinate the regional planning with the
6-12 comprehensive state water plan;
6-13 (4) finance or seek financing for the water and
6-14 wastewater infrastructure, especially in economically distressed
6-15 areas;
6-16 (5) provide for regional drought and water supply
6-17 management;
6-18 (6) collect and disseminate water and wastewater
6-19 regional data;
6-20 (7) coordinate state level financial and technical
6-21 assistance in extending or creating water and wastewater service;
6-22 (8) promote conservation planning, education, and
6-23 research of surface water and groundwater resources;
6-24 (9) promote preservation of human health and the
6-25 environment;
6-26 (10) promote water quality; and
6-27 (11) accomplish any other related regional utility
7-1 purpose.
7-2 (e) On or within 90 days after the effective date of this
7-3 Act, the PSB shall adopt such policies and rules as may be
7-4 necessary to ensure, through the regular nomination and selection
7-5 process required of the PSB, that:
7-6 (1) the next vacancy occurring on the PSB shall be
7-7 filled by a qualified candidate residing within El Paso County but
7-8 outside the boundaries of the city's municipal jurisdiction;
7-9 (2) at least one member of the PSB shall always be a
7-10 resident of El Paso County residing outside the boundaries of the
7-11 city's municipal jurisdiction; and
7-12 (3) if the city of El Paso has not adopted the above
7-13 policies within the time stated, this Act shall be null and void.
7-14 SECTION 4. ORGANIZATION OF REGIONAL UTILITY ADVISORY
7-15 COMMITTEE. (a) There shall be created a committee known as the
7-16 Regional Utility Advisory Committee, consisting during the first
7-17 terms of office of nine appointed members. Of these nine members,
7-18 the commissioners court of the county shall appoint five members
7-19 and the city shall appoint four members. Of the five members
7-20 appointed by the commissioners court:
7-21 (1) one appointee shall be a qualified voter residing
7-22 within the jurisdiction of the El Paso County Lower Valley Water
7-23 District Authority;
7-24 (2) one appointee shall be a qualified voter residing
7-25 within the jurisdiction of the El Paso County Water Authority;
7-26 (3) one appointee shall be a qualified voter residing
7-27 within the jurisdiction of either the El Paso County Water Control
8-1 and Improvement District--Westway or the City of Anthony Water
8-2 Utility;
8-3 (4) one appointee shall be a qualified voter residing
8-4 within the jurisdiction or the service area of Deerfield Park Water
8-5 Supply Corporation, East El Paso Water Supply Corporation,
8-6 Homestead Municipal Utility District, or Haciendas del Norte Water
8-7 Improvement District; and
8-8 (5) one appointee shall be a qualified voter residing
8-9 within the jurisdiction or service area of El Paso County Tornillo
8-10 Water Improvement District, Tornillo Water Supply Corporation, El
8-11 Paso County Water Control and Improvement District No. 4, or San
8-12 Elizario Grant Municipal Utility District.
8-13 (b) The terms for these interim committee members shall be
8-14 three years. After the expiration of the terms of office of the
8-15 interim nine-member committee, the permanent committee shall
8-16 consist of seven members, five of whom are to be appointed by the
8-17 commissioners court of the county and two of whom are to be jointly
8-18 appointed by the mayors of the incorporated municipalities, other
8-19 than the city, within the county. The duties of both the interim
8-20 and permanent committees shall be to act as an advisory body to the
8-21 regional utility on matters related to:
8-22 (1) the priorities in the provision of utility
8-23 services;
8-24 (2) the rates and charges for the services outside of
8-25 the corporate limits of the city;
8-26 (3) regional planning;
8-27 (4) adoption of or amendments to rules and regulations
9-1 affecting provision of utility service outside of the corporate
9-2 limits of the city; and
9-3 (5) any other matter requested by the regional
9-4 authority.
9-5 (c) Each member of the permanent committee appointed by the
9-6 commissioners court of the county shall be a qualified voter
9-7 residing within the county and outside the city's municipal
9-8 jurisdiction. Each member of the committee appointed by the mayors
9-9 of the other incorporated cities within the county shall be a
9-10 qualified voter residing within the county and within one or the
9-11 other of the incorporated municipalities other than the city. Each
9-12 member of both the interim and permanent committees shall also be
9-13 over 18 years of age and shall have resided in the county for a
9-14 minimum of six months immediately prior to the date of appointment.
9-15 (d) Two of the members of the permanent committee appointed
9-16 by the commissioners court of the county and the two members
9-17 appointed by the mayors of the incorporated municipalities in the
9-18 county shall serve for three years. All other members of the
9-19 permanent committee, after the first term of the first four members
9-20 of the permanent committee, shall be appointed to serve two-year
9-21 terms. A vacancy on the permanent committee shall be filled by
9-22 appointment for the unexpired term by the commissioners court or
9-23 the mayors of the incorporated municipalities, whichever appointed
9-24 the member whose seat was vacated.
9-25 (e) A person is disqualified from serving as a member of
9-26 either committee if:
9-27 (1) the person is related within the third degree of
10-1 affinity or consanguinity to:
10-2 (A) a developer of property in the county;
10-3 (B) any elected official of the city or county;
10-4 (C) any manager of the regional utility; or
10-5 (D) any other member of the committee;
10-6 (2) the person is an employee or officer of:
10-7 (A) any developer of property in the county;
10-8 (B) any elected official of the city, other
10-9 incorporated cities within the county, or the county;
10-10 (C) any manager of the regional utility; or
10-11 (D) any manager, engineer, or attorney for a
10-12 district, the county, the city, or other incorporated municipality
10-13 within the county;
10-14 (3) the person is a developer of property in the
10-15 county;
10-16 (4) the person is serving as an attorney, consultant,
10-17 engineer, manager, architect, or in some other professional
10-18 capacity for the regional utility, the county, a district or an
10-19 incorporated city within the county, or for a developer of property
10-20 within the county in connection with the regional utility service;
10-21 or
10-22 (5) the person is a party to a contract with or along
10-23 with the regional utility except for the purchase of public
10-24 services furnished by the regional utility to the public generally.
10-25 SECTION 5. ADDITIONAL RIGHTS AND POWERS OF REGIONAL UTILITY.
10-26 (a) For the purposes of providing utility service and operating a
10-27 regional utility in the county, the regional utility shall have all
11-1 powers and authority provided in Sections 402.001 and 402.002,
11-2 Local Government Code. The regional utility shall specifically
11-3 have the authority to apply for and obtain grants and loans for the
11-4 purpose of providing utility service outside of the city's
11-5 municipal jurisdiction and for the purpose of funding and providing
11-6 for regional projects with other states and the Republic of Mexico.
11-7 This Act authorizes the regional utility pursuant to the regional
11-8 water supply and wastewater facilities plan prepared pursuant to
11-9 Subsection (b) of Section 3 of this Act to:
11-10 (1) contract with other local governments,
11-11 municipalities, districts, river authorities, or other state or
11-12 governmental entities within this state, within other states, or
11-13 within the Republic of Mexico;
11-14 (2) obtain grants and loans to provide utility service
11-15 outside of the city's municipal jurisdiction;
11-16 (3) provide for planning and construction of regional
11-17 projects including water supply or wastewater treatment facilities;
11-18 and
11-19 (4) otherwise promote the regionalization of utility
11-20 services within the county and surrounding areas.
11-21 (b)(1) For the purposes of providing utility service and
11-22 operating a regional utility in the county outside of the municipal
11-23 jurisdiction of the city, the regional utility may issue its
11-24 revenue bonds, notes, revenue anticipation notes, bond anticipation
11-25 notes, short-term obligations, refunding bonds, or other
11-26 obligations for any of its purposes without an election and on
11-27 terms the city council of the city determines to be appropriate.
12-1 (2) Obligations may be made payable from all or part
12-2 of the revenues of the regional utility derived from any lawful
12-3 source, including any contract with any customer or user of the
12-4 facilities owned or operated by the regional utility under this Act
12-5 or from the ownership and operation of any waterworks system,
12-6 wastewater system, sewer system, solid waste disposal system,
12-7 nonhazardous liquid waste system, or any combination of those
12-8 systems. Additionally, those obligations may be paid from and
12-9 secured by liens on and pledges of all or part of any of the
12-10 revenue, income, or receipts derived by the regional utility from
12-11 its ownership, operation, lease, or sale of the property,
12-12 buildings, structures, or facilities, including the proceeds or
12-13 revenues from contracts with any person, firm, corporation,
12-14 municipality, public agency, or other political subdivision or
12-15 entity.
12-16 (3) Bonds or other obligations may be issued to mature
12-17 serially or otherwise in not to exceed 40 years from their date of
12-18 issuance, and provision may be made for the subsequent issuance of
12-19 additional parity obligations or subordinate lien obligations under
12-20 terms or conditions that may be set forth in the ordinance
12-21 authorizing the issuance of the obligations.
12-22 (4) The bonds or other obligations are negotiable
12-23 instruments within the meaning of Chapter 8, Business & Commerce
12-24 Code.
12-25 (5) The bonds or other obligations shall be executed
12-26 and made redeemable before maturity, issued in the form,
12-27 denominations, and manner and under the terms, conditions, and
13-1 details, and sold in the manner, at the price, and under the terms
13-2 provided by the bond ordinance.
13-3 (6) The bonds or other obligations shall bear interest
13-4 at rates provided in the ordinance authorizing the issue of the
13-5 bonds or other obligations.
13-6 (7) If provided in the bond ordinance, the proceeds
13-7 from the sale of the bonds or other obligations may be used for
13-8 paying interest on those bonds or other obligations during the
13-9 period of the acquisition or construction of any facilities to be
13-10 provided through the issuance of the bonds or other obligations,
13-11 paying expenses of operation and maintenance of facilities,
13-12 creating a reserve fund for the payment of principal of and
13-13 interest on the bonds or other obligations, and creating any other
13-14 funds.
13-15 (8) The proceeds from the sale of the bonds or other
13-16 obligations may be placed on time deposit or invested to the extent
13-17 and in the manner provided by the bond ordinance.
13-18 (9) The regional utility may pledge all or any part of
13-19 its revenue, income, or receipts from fees, rentals, rates,
13-20 charges, or contract proceeds or payments to the payment of such
13-21 bonds or other obligations, including the payment of principal,
13-22 interest, and any other amounts required or permitted in connection
13-23 with the bonds or other obligations. The pledged fees, rentals,
13-24 rates, charges, proceeds, or payments shall be established and
13-25 collected in amounts that will be at least sufficient, together
13-26 with any other pledged resources, to provide for the payment of
13-27 expenses in connection with the bonds or other obligations and for
14-1 the operation, maintenance, and other expenses in connection with
14-2 those facilities.
14-3 (10) Such bonds and other obligations may be
14-4 additionally secured by mortgages or deeds of trust on real
14-5 property owned or to be acquired by the regional utility and by
14-6 chattel mortgages or liens on any personal property appurtenant to
14-7 the real property. The regional utility may authorize the
14-8 execution of trust indentures, mortgages, deeds of trust, or other
14-9 forms of encumbrances. It may pledge to the payment of the
14-10 obligations all or any part of any grant, donation, revenue, or
14-11 income received or to be received from the United States government
14-12 or any other public or private source.
14-13 (11) The regional utility is the issuer within the
14-14 meaning of Chapter 53, Acts of the 70th Legislature, 2nd Called
14-15 Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes), and
14-16 bonds issued pursuant to this Act and the appropriate proceedings
14-17 authorizing their issuance must be submitted to the attorney
14-18 general for examination if required to be submitted by Chapter 53,
14-19 Acts of the 70th Legislature, 2nd Called Session, 1987 (Article
14-20 717k-8, Vernon's Texas Civil Statutes). If the bonds recite that
14-21 they are secured by a pledge of revenue from a contract, a copy of
14-22 the contract and the proceedings relating to the contract must be
14-23 submitted to the attorney general. If the attorney general finds
14-24 that the bonds are authorized and the contract is entered in
14-25 accordance with law, the attorney general shall approve the bonds
14-26 and the contract, and the bonds shall be registered by the
14-27 comptroller. After approval and registration, the bonds and the
15-1 contract are incontestable in any court or other forum for any
15-2 reason and are valid and binding obligations in accordance with
15-3 their terms for all purposes.
15-4 (12) The regional utility shall issue its bonds and
15-5 other obligations in accordance with Chapter 656, Acts of the 68th
15-6 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
15-7 Civil Statutes), and the Bond Procedures Act of 1981 (Article
15-8 717k-6, Vernon's Texas Civil Statutes), as applicable.
15-9 (c) Notwithstanding the provisions of Subsection (b) of this
15-10 section, it is the express intent of the legislature to ensure the
15-11 continuity and facilitation of the purpose of this Act by
15-12 establishing an emergency clause as follows:
15-13 (1) The regional utility may declare an emergency
15-14 exists when in the normal operation of the district the loss of
15-15 participation by the United States government and its agencies, the
15-16 State of Texas and its agencies, or joint interstate or
15-17 international agreements authorized by this Act results in
15-18 unsustainable increases to participants within El Paso County and
15-19 outside the city limits of El Paso who would be so severely
15-20 impacted as to render the purpose of providing water and wastewater
15-21 treatment as defined in this Act an economic, environmental, or
15-22 health crisis.
15-23 (2) During an emergency and after review by the Texas
15-24 Natural Resource Conservation Commission and Texas Water
15-25 Development Board, the regional utility shall request the city of
15-26 El Paso to utilize revenues received from ratepayers inside the
15-27 corporate boundaries of the city to subsidize the cost of providing
16-1 utility service to ratepayers outside the boundaries of the city.
16-2 (d)(1) The regional utility may enter into contracts with
16-3 any public or private party or body considered necessary in the
16-4 exercise of the powers and purposes of the regional utility under
16-5 this Act. This authority shall extend to those areas outside of
16-6 the municipal jurisdiction of the city.
16-7 (2) Pursuant to provisions of Subdivision (1) of this
16-8 subsection, the regional utility may enter into contracts for the
16-9 acquisition, purchase, rental, lease, or operations of the water
16-10 production, water supply, water filtration or purification, water
16-11 supply facilities, or other water or wastewater facilities that are
16-12 owned or operated by the contracting party.
16-13 (3) Contracts that require a payment of money by the
16-14 regional utility may be made payable from any general or specific
16-15 source of funds.
16-16 (e) So long as the regional utility complies with Chapter
16-17 13, Water Code, and the applicable provisions of Section 6 of this
16-18 Act and except as expressly limited in this Act, the rights and
16-19 powers described in this Act shall prevail over any limitations
16-20 contained in any other law.
16-21 (f) Notwithstanding any other provisions of this Act, this
16-22 Act shall not operate to authorize the regional utility to condemn
16-23 land owned by the state and shall not authorize the regional
16-24 utility to condemn land or assets owned by any other political
16-25 subdivision of the state outside of the city's municipal
16-26 jurisdiction including the districts. Nothing in this Act shall
16-27 allow the condemnation or transfer of surface water rights granted
17-1 to the El Paso County Water Improvement District No. 1, and those
17-2 surface water rights may only be transferred by contract with the
17-3 El Paso County Water Improvement District No. 1.
17-4 (g) Except to the extent of any tax obligation imposed by
17-5 any district and necessary to retire any debt existing on the date
17-6 of consolidation as hereinafter provided, this Act shall not
17-7 operate to allow the regional utility to tax property outside of
17-8 the city's corporate limits.
17-9 SECTION 6. CONSOLIDATION OF DISTRICTS. (a) The regional
17-10 utility shall have the authority to consolidate one or more of the
17-11 districts into the regional utility on the occurrence of one or
17-12 more of the following events:
17-13 (1) a majority vote of the membership of a district
17-14 operating as a water supply corporation or a majority vote of the
17-15 board of directors of an investor-owned utility;
17-16 (2) a majority vote of the board of directors of a
17-17 district other than a water supply corporation to dissolve the
17-18 district by consolidation into the regional utility, followed by an
17-19 election in the district, at the earliest available uniform
17-20 election date, at which a majority of the voters voting in the
17-21 election vote to dissolve the district by consolidation into the
17-22 regional utility;
17-23 (3) on the filing of a petition with the board of
17-24 directors of the subject district, presented at a regularly
17-25 scheduled open meeting of the board, signed by 20 percent of the
17-26 registered voters of the subject district, other than a water
17-27 supply corporation, followed by an election on an order by the
18-1 board of directors of the district. An election held in accordance
18-2 with this procedure must be held on the next available uniform
18-3 election date following certification of the petition in accordance
18-4 with Section 41.001, Election Code, provided, however, that such an
18-5 election shall not be required more than once in any consecutive
18-6 24-month period.
18-7 (b) Notwithstanding the occurrence of a vote or election as
18-8 provided in Subsection (a) of this section, as to each district
18-9 with bonds, notes, obligations, or taxes owed, contracted, or
18-10 authorized at the time of the district's vote into the regional
18-11 utility, consolidation of a district into the regional utility
18-12 shall not be final and effective until:
18-13 (1) the boards of directors of the regional utility
18-14 and the district have entered into a consolidation agreement;
18-15 (2) as to each district other than a district
18-16 operating as a water supply corporation, the board has ordered and
18-17 held an election in the district at which a majority of voters
18-18 voting in the election approved the terms and conditions of the
18-19 consolidation agreement;
18-20 (3) the district's debts, bonds, notes, obligations
18-21 and taxes, as applicable, have been paid in full, assumed, or
18-22 satisfactorily addressed in the consolidation agreement; and
18-23 (4) a regional utility consolidation order has been
18-24 filed by the regional utility in the real property records of the
18-25 county and the Texas Water Commission.
18-26 (c) If an election is required to be held in a district for
18-27 the purposes of consolidation into the regional utility, then the
19-1 election shall be held in conformity with the Election Code, as
19-2 amended, or the Texas Non-Profit Corporation Act (Article 1396-1.01
19-3 et seq., Vernon's Texas Civil Statutes), and all applicable
19-4 election law.
19-5 (d) At all times prior to final consolidation of a district
19-6 which has debts or other obligations which may be owed, contracted,
19-7 or authorized, the district shall:
19-8 (1) protect the assets of the district and ensure that
19-9 they are not impaired;
19-10 (2) where applicable and necessary, assess and collect
19-11 taxes on property in the district to pay debts created by the
19-12 district; and
19-13 (3) pay debts of the district and manage the assets of
19-14 the district through the sale, lease, or other management of
19-15 district lands.
19-16 (e) If taxes were levied on land within a district
19-17 consolidated into the regional utility at the time of consolidation
19-18 and if taxes are necessary to retire existing debt, the regional
19-19 utility shall continue to assess and collect the taxes, but the
19-20 regional utility shall not increase tax rates in the district in
19-21 order to retire debts of the district unless such increase is
19-22 authorized as provided by existing law.
19-23 (f) Consolidation shall be achieved in such a way that it
19-24 does not violate existing bond covenants and other contractual
19-25 obligations of the city and its public service board or any
19-26 district and does not adversely affect their bond ratings.
19-27 (g) The regional utility may apply to the Texas Water
20-1 Development Board for up to $3 million appropriated during the
20-2 1994-1995 biennium for grants or loans to encourage and facilitate
20-3 the regionalization of water and wastewater services in El Paso
20-4 County. Any funds awarded pursuant to this provision shall be used
20-5 by the regional utility to purchase and refinance district debt in
20-6 order to achieve a reasonable cost of service to existing customers
20-7 and facilitate consolidation of water and wastewater services in
20-8 the county.
20-9 SECTION 7. UTILITY SERVICE RATES. (a) The regional utility
20-10 may establish fees and charges for initiating service to service
20-11 applicants and rates, fees, and charges for utility service
20-12 provided to retail customers in the expanded service area or to
20-13 wholesale customers outside the expanded service areas.
20-14 Notwithstanding Subsection (b), Section 16.349, Water Code, the
20-15 regional utility may charge retail service applicants and customers
20-16 in an area outside the corporate boundaries of the city rates for
20-17 utility service actually provided based on the actual, documentable
20-18 cost of providing that service even if the rates so charged exceed
20-19 the rates charged by the utility to ratepayers inside the corporate
20-20 boundaries of the city.
20-21 (b) The regional utility shall not use utility revenues
20-22 received from ratepayers inside the corporate boundaries of the
20-23 city to subsidize costs of providing utility service to ratepayers
20-24 outside the boundaries of the city nor shall it use utility
20-25 revenues received from retail ratepayers outside the city to
20-26 subsidize costs of providing utility service inside the city. The
20-27 utility shall not pay to or deposit in the general revenue fund
21-1 revenues received from the rates charged to retail customers
21-2 outside the city except as required by any existing bond covenant
21-3 or by any future bond covenant unless the new bonds that are issued
21-4 are used to fund utility services to ratepayers outside the
21-5 corporate boundaries of the city.
21-6 (c) Ratepayers of the regional utility residing outside the
21-7 boundaries of the city shall have all rights provided in Chapter
21-8 13, Water Code, as applicable.
21-9 SECTION 8. PROVISION OF UTILITY SERVICE. (a) As a
21-10 condition of providing utility service, the regional utility may
21-11 require that all development in the county meet the minimum
21-12 construction and development standards established by the Texas
21-13 Water Development Board for economically distressed areas in
21-14 accordance with Section 16.343, Water Code, as adopted by the
21-15 county, and comply with the Rules and Regulation Number 11 of the
21-16 PSB concerning extension of utility services outside of the city
21-17 limits to the extent that they do not conflict with any provisions
21-18 of this Act and the plans developed pursuant to Subsection (b) of
21-19 Section 3 of this Act.
21-20 (b) On consolidation of a district into the regional
21-21 utility, the regional utility shall be required to provide utility
21-22 service to those residents of the district pursuant to the
21-23 provisions of the regional water supply and wastewater facilities
21-24 plan developed pursuant to Subsection (b) of Section 3 of this Act.
21-25 Notwithstanding any other provision in this Act, any water supply
21-26 or wastewater facilities being constructed or designed on the
21-27 effective date of this Act through grants from the Texas Water
22-1 Development Board or Farmers Home Administration shall be continued
22-2 by the regional utility uninterrupted by any delay and be
22-3 incorporated into the regional water supply and wastewater
22-4 facilities plan developed pursuant to Subsection (b) of Section 3
22-5 of this Act.
22-6 (c) In order to plan for regional utility service within the
22-7 county, the regional utility shall include land that belongs to the
22-8 permanent school fund of the state within a regional plan. In such
22-9 event, the provisions of a regional plan shall be binding on
22-10 permanent school fund land only after the regional utility provides
22-11 acceptable utility service commitments to the affected land and
22-12 obtains the written consent of the School Land Board in accordance
22-13 with its rules and regulations.
22-14 (d) In order to assist in ensuring the public health and
22-15 welfare of the residents of El Paso County, the regional utility,
22-16 before making any water service available to residents of El Paso
22-17 County not currently being served with water from the PSB, must
22-18 first provide water service to residents of the county that are
22-19 being served by a public or private entity water system that
22-20 provides water that fails to meet any federal or state laws,
22-21 regulations, requirements, or rules in effect for public drinking
22-22 water systems. Such water service must be offered by the regional
22-23 utility as soon as possible at a rate based on the actual,
22-24 documentable cost of providing that service as agreed to by the
22-25 regional utility and entity, or at a just and reasonable rate
22-26 established by the Texas Water Commission if the regional utility
22-27 and entity cannot agree on such a rate, but in no event shall such
23-1 offer for water service from the regional utility be made any later
23-2 than nine months after enactment of this Act.
23-3 SECTION 9. SEVERABILITY AND CONSTRUCTION. (a) If any
23-4 provisions of this Act or the application thereof to any person or
23-5 circumstance is held invalid, such invalidity shall not affect
23-6 other provisions or applications of this Act that can be given
23-7 effect without the invalid provision or application, and to this
23-8 end the provisions of this Act are declared to be severable. All
23-9 the terms and provisions of this Act are declared severable. All
23-10 the terms and provisions of this Act are to be liberally construed
23-11 to effectuate the purposes, powers, rights, functions, and
23-12 authorities herein set forth.
23-13 (b) Nothing contained in this Act shall be construed to
23-14 limit the power of the governing body of the city to control the
23-15 governing body of the city's water and wastewater utility systems
23-16 as provided for in Articles 1111 and 1115, Revised Statutes.
23-17 (c) Nothing contained in this Act shall be construed to
23-18 require the city or the governing body of the city's water and
23-19 wastewater utility systems to provide services other than the water
23-20 and wastewater services described herein.
23-21 SECTION 10. APPLICATION. This Act applies only to a county
23-22 that has a population of 400,000 or more according to the most
23-23 recent federal census, borders the Republic of Mexico, and does not
23-24 have three or more cities that each have a population of more than
23-25 17,500.
23-26 SECTION 11. EMERGENCY. The importance of this legislation
23-27 and the crowded condition of the calendars in both houses create an
24-1 emergency and an imperative public necessity that the
24-2 constitutional rule requiring bills to be read on three several
24-3 days in each house be suspended, and this rule is hereby suspended,
24-4 and that this Act take effect and be in force from and after its
24-5 passage, and it is so enacted.