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 and operation
1-5 of a regional utility.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. DEFINITIONS. (a) "assets" means all physical
1-8 assets, contract rights, water rights and all other rights or
1-9 privileges of any kind or nature which belong to a district.
1-10 (b) "city" means the City of El Paso, a home rule city
1-11 pursuant to the laws of the State of Texas.
1-12 (c) "city's municipal jurisdiction" means the city's
1-13 authority within the city limits and the extraterritorial
1-14 jurisdiction of the city.
1-15 (d) "commission" means the Texas Natural Resources
1-16 Conservation Commission.
1-17 (e) "county" means El Paso County.
1-18 (f) "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 (g) "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, any other water supply corporation, or
2-7 any other district in the county created by Art. XVI, Sec. 59 of
2-8 the Texas Constitution providing utility service as defined herein
2-9 and located in the county, but excluding the El Paso County Water
2-10 Improvement District No. 1.
2-11 (h) "PSB" means the Public Service Board, a board of
2-12 trustees having management and control of the water and wastewater
2-13 utility systems of the city as established through the encumbrances
2-14 of the system as provided in Article 1115, Texas Revised Civil
2-15 Statutes, Ordinance No. 752 (May 22, 1952) and any subsequent
2-16 ordinance adopted by the city authorizing the issuance of water and
2-17 wastewater system revenue bonds.
2-18 (i) "regional utility" means the city, acting through its
2-19 water and wastewater utility systems.
2-20 (j) "regional service" means water and wastewater services.
2-21 (k) "committee" means the interim and permanent Regional
2-22 Utility Advisory Committee as hereinafter created.
2-23 SECTION 2. PURPOSES OF ACT. The purposes of this Act are as
2-24 follows:
2-25 (a) to encourage and provide for the orderly consolidation
3-1 of the districts in the county into a regional utility in order to:
3-2 (1) insure the provision of utility services to all
3-3 residents of the county at the lowest possible cost according to a
3-4 regional plan;
3-5 (2) eliminate unnecessary competition by the districts
3-6 for limited water, financial and other valuable resources;
3-7 (3) take advantage of economies of scale with regard
3-8 to the provision of utility services in the county;
3-9 (4) conjunctively manage the limited resources of
3-10 surface and ground water of the county so that the integrity and
3-11 quality of these limited resources is protected and extended to the
3-12 greatest extent reasonably possible.
3-13 (b) to enable the city acting through its water and
3-14 wastewater utility as managed and operated by the PSB, or the City
3-15 Council as the case may be, to operate as the regional utility in
3-16 the county;
3-17 (c) to give the regional utility the authority to plan,
3-18 operate and provide for utility services on a regional basis;
3-19 (d) to provide a framework for the management and operation
3-20 of a regional utility within and outside of the city's municipal
3-21 jurisdiction;
3-22 (e) to provide for the assumption of the assets and debts of
3-23 the districts upon consolidation into a regional utility;
3-24 (f) to authorize the regional utility to provide water and
3-25 wastewater services outside of the extraterritorial jurisdiction of
4-1 the city, with the ability to contract and to issue its bonds to
4-2 buy, own, and construct facilities outside of the municipal
4-3 jurisdiction.
4-4 SECTION 3. DESIGNATION OF CITY AS EL PASO COUNTY REGIONAL
4-5 UTILITY. (a) Upon the enactment of an enabling resolution by the
4-6 City Council of the City of El Paso, the city, through its water
4-7 and wastewater utility systems, as managed by its PSB or by the
4-8 city council, as the case may be, is hereby designated as the
4-9 regional utility provider in the county for the purpose of
4-10 providing utility services within the county. After the enactment
4-11 of the enabling resolution by the City Council of the City of El
4-12 Paso, the obligation of the regional utility to act as the regional
4-13 utility provider as provided by the terms of this act shall
4-14 continue in full force and effect and shall only be amended or
4-15 abolished by the legislature of the state of Texas.
4-16 (b) Upon enactment of the enabling resolution of the City
4-17 Council of the city or upon the effective date of this act,
4-18 whichever is later, the regional utility shall:
4-19 (1) file an application with the Texas Water
4-20 Development Board for a regional water supply and wastewater
4-21 facilities planning grant study pursuant to the provisions of
4-22 Section 15.406 of the Water Code and the applicable rules
4-23 promulgated by the Texas Water Development Board. In the event of
4-24 approval of the application by the Texas Water Development Board
4-25 pursuant to the statute and rules, the regional utility shall enter
5-1 into a contract with the Texas Water Development Board to conduct a
5-2 regional water supply and wastewater facilities planning study
5-3 which shall include all of the county and incorporate any water
5-4 supply and wastewater facilities currently being designed or
5-5 constructed in the county. Results of this planning effort shall
5-6 be completed within 12 months after execution of a contract with
5-7 the Texas Water Development Board, and shall result in a plan which
5-8 shall include an implementation schedule and associated preliminary
5-9 costs for water and wastewater facilities to provide service and a
5-10 financial plan and rate study to meet the projected water and
5-11 wastewater needs within the county to the year 2040. The regional
5-12 utility shall review the plan every five years to consider any
5-13 amendment to modification that may be needed because of changed
5-14 conditions. The regional utility shall amend or modify the plan as
5-15 experience and changed conditions require. Any such amendment or
5-16 modification becomes a part of the plan.
5-17 (2) file an application with the Texas Water
5-18 Development Board for a regional water supply planning grant
5-19 pursuant to the provisions of Section 15.406 of the Water Code and
5-20 the applicable rules promulgated by the Texas Water Development
5-21 Board. In the event of approval of the application by the Texas
5-22 Water Development Board pursuant to the applicable statute and
5-23 rules, the regional utility shall enter into a contract with the
5-24 Texas Water Development Board for the preparation of a regional
5-25 water supply planning study which shall include all of the county.
6-1 Results of the planning effort shall be completed within 6 months
6-2 after execution of a contract with the Texas Water Development
6-3 Board, and shall result in a plan which shall identify projected
6-4 water demands and available and potential supplies to meet the
6-5 water supply needs within the county to the year 2040.
6-6 (c) Subject to the provisions of all outstanding water or
6-7 wastewater system revenue bonds of the city, the regional utility
6-8 shall serve any area or areas within the county, and is hereby
6-9 designated as the utility service provider within the county, and
6-10 it shall receive priority consideration for purposes of state
6-11 funding.
6-12 (d) As the regional utility provider, the regional utility
6-13 shall receive priority consideration for purposes of state funding
6-14 of regional planning for the provision of utility service outside
6-15 the city's municipal jurisdiction. The regional utility may enter
6-16 into agreements and cooperative projects with political
6-17 subdivisions and other governmental entities in this State, the
6-18 state of New Mexico, the International Boundary and Water
6-19 Commission, and with the Republic of Mexico or any responsible
6-20 political subdivision thereof to:
6-21 (1) promote regional planning for the provisions of
6-22 utility services;
6-23 (2) promote regional planning which is consistent with
6-24 the United States/Mexico integrated border plan;
6-25 (3) coordinate the regional planning with the
7-1 comprehensive state water plan;
7-2 (4) finance, or seek financing for, the water and
7-3 wastewater infrastructure, especially in economically distressed
7-4 areas;
7-5 (5) provide for regional drought and water supply
7-6 management;
7-7 (6) collect and disseminate water and wastewater
7-8 regional data;
7-9 (7) coordinate state level financial and technical
7-10 assistance in extending or creating water and wastewater service;
7-11 (8) promote conservation planning, education, and
7-12 research of surface water and ground water resources;
7-13 (9) promote preservation of human health and the
7-14 environment;
7-15 (10) promote water quality; and
7-16 (11) accomplish any other related regional utility
7-17 purpose.
7-18 SECTION 4. ORGANIZATION OF THE REGIONAL UTILITY ADVISORY
7-19 COMMITTEE. (a) Within thirty days of the resolution of the City
7-20 Council provided for in section 3 (a) of this act there shall also
7-21 be created a committee known as the Regional Utility Advisory
7-22 Committee, consisting during the first terms of office of nine
7-23 appointed members. Of these nine members, the commissioners court
7-24 of the county shall appoint five members and the city shall appoint
7-25 four members. Of the five members appointed by the commissioners
8-1 court,
8-2 (1) one appointee shall be a qualified voter residing
8-3 within the jurisdiction of the El Paso County Lower Valley Water
8-4 District Authority;
8-5 (2) one appointee shall be a qualified voter residing
8-6 within the jurisdiction of the El Paso County Water Authority;
8-7 (3) one appointee shall be a qualified voter residing
8-8 within the jurisdiction of either the El Paso County Water Control
8-9 and Improvement District - Westway or the City of Anthony Water
8-10 Utility;
8-11 (4) one appointee shall be a qualified voter residing
8-12 within the jurisdiction or the service area of either Deerfield
8-13 Park Water Supply Corporation, East El Paso Water Supply
8-14 Corporation, Homestead Municipal Utility District, or Haciendas del
8-15 Norte Water Improvement District; and
8-16 (5) one appointee shall be a qualified voter residing
8-17 within the jurisdiction or service area of either El Paso County
8-18 Tornillo Water Improvement District, Tornillo Water Supply
8-19 Corporation, El Paso County Water Control and Improvement District
8-20 No. 4, or San Elizario Grant Municipal Utility District. The terms
8-21 for these interim board members shall be three years.
8-22 After the expiration of the terms of office of the interim
8-23 nine member board, the permanent committee shall consist of seven
8-24 (7) members, five (5) of whom are to be appointed by the
8-25 commissioners court of the county and two (2) of whom are to be
9-1 jointly appointed by the mayors of the incorporated municipalities,
9-2 other than the city, within the county. The duties of both the
9-3 interim and permanent committee shall be to act as an advisory body
9-4 to the regional utility on matters related to:
9-5 (1) the priorities in the provision of utility
9-6 services;
9-7 (2) the rates and charges for the services outside of
9-8 the corporate limits of the city;
9-9 (3) regional planning;
9-10 (4) adoption of or amendments to rules and regulations
9-11 affecting provision of utility service outside of the corporate
9-12 limits of the city; and
9-13 (5) any other matter requested by the regional
9-14 authority.
9-15 (b) Each member of the permanent committee appointed by the
9-16 commissioners court of the county shall be a qualified voter
9-17 residing within the county and outside the city's municipal
9-18 jurisdiction. Each member of the committee appointed by the mayors
9-19 of the other incorporated cities within the county shall be a
9-20 qualified voter residing within the county and within one or the
9-21 other of the incorporated municipalities other than the city. Each
9-22 member of both the interim and permanent committee shall also be
9-23 over eighteen years of age and shall have resided in the county for
9-24 a minimum of six months immediately prior to the date of
9-25 appointment.
10-1 (c) Two of the members of the permanent committee appointed
10-2 by the commissioners court of the county, and the two members
10-3 appointed by the mayors of the incorporated municipalities in the
10-4 county, shall serve for three years. All other members of the
10-5 permanent committee, and after the first term of the first four
10-6 members of the permanent committee, shall be appointed to serve a
10-7 two year term. A vacancy of the permanent committee shall be
10-8 filled by appointment for the unexpired term by the commissioners
10-9 court or the mayors of the incorporated municipalities, whichever
10-10 appointed the member whose seat was vacated.
10-11 (d) A person is disqualified from serving as a member of
10-12 either committee if:
10-13 (1) he is related within the third degree of affinity
10-14 or consanguinity to:
10-15 (A) a developer of property in the county,
10-16 (B) any elected official of the city or county,
10-17 (C) any manager of the regional utility,
10-18 (D) or any other member of the committee;
10-19 (2) he is an employee or officer of:
10-20 (A) any developer of property in the county,
10-21 (B) any elected official of the city, or other
10-22 incorporated cities within the county, or the county,
10-23 (C) any manager of the regional utility,
10-24 (D) or any manager, engineer or attorney for a
10-25 district, the county, the city, or other incorporated municipality
11-1 within the county;
11-2 (3) he is a developer of property in the county;
11-3 (4) he is serving as an attorney, consultant,
11-4 engineer, manager, architect or in some other professional capacity
11-5 for the regional utility, the county, a district or an incorporated
11-6 city within the county, or of a developer of property within the
11-7 county, in connection with the regional utility service;
11-8 (5) he is a party to a contract with or along with the
11-9 regional utility except for the purchase of public services
11-10 furnished by the regional utility to the public generally.
11-11 SECTION 5. ADDITIONAL RIGHTS AND POWERS OF THE REGIONAL
11-12 UTILITY.
11-13 (a) For the purposes of providing utility service and
11-14 operating a regional utility in the county, the regional utility
11-15 shall have all powers and authority provided in Sections 402.001
11-16 and 402.002 of the Local Government Code. The regional utility
11-17 shall specifically have the authority to apply for and obtain
11-18 grants and loans for the purpose of providing utility service
11-19 outside of the city's municipal jurisdiction and for the purpose of
11-20 funding and providing for regional projects with other states and
11-21 the Republic of Mexico. This Act amends Sections 791.011 and
11-22 791.026 of the Government Code to authorize the regional utility
11-23 pursuant to the regional water supply and wastewater facilities
11-24 plan prepared pursuant to Section 3(b) of this act to:
11-25 (1) contract with other local governments,
12-1 municipalities, districts, river authorities, or other state or
12-2 governmental entities within this State, or within other states,
12-3 and with the Republic of Mexico,
12-4 (2) obtain grants and loans to provide utility service
12-5 outside of the city's municipal jurisdiction,
12-6 (3) provide for planning and construction of regional
12-7 projects including water supply or wastewater treatment facilities,
12-8 and
12-9 (4) otherwise promote the regionalization of utility
12-10 services within the county and surrounding areas.
12-11 (b)(1) For the purposes of providing utility service and
12-12 operating a regional utility in the county, outside of the
12-13 municipal jurisdication of the city, the regional utility may issue
12-14 its revenue bonds, notes, revenue anticipation notes, bond
12-15 anticipation notes, short term obligations, refunding bonds, or
12-16 other obligations for any of its purposes without an election and
12-17 on those terms as the City Council of the city determines to be
12-18 appropriate.
12-19 (2) Those obligations may be made payable from all or
12-20 part of the revenues of the regional utility derived from any
12-21 lawful source, including any contract with any customer or user of
12-22 the facilities owned or operated by the regional utility under this
12-23 act or from the ownership and operation of any waterworks system,
12-24 wastewater system, sewer system, solid waste disposal system, or
12-25 nonhazardous liquid waste system, or any combination of those
13-1 systems. Additionally, those obligations may be paid from and
13-2 secured by liens on and pledges of all or part of any of the
13-3 revenue, income, or receipts derived by the regional utility from
13-4 its ownership, operation, lease, or sale of the property,
13-5 buildings, structures, or facilities, including the proceeds or
13-6 revenues from contracts with any person, firm, corporation,
13-7 municipality, public agency, or other political subdivision or
13-8 entity.
13-9 (3) Those bonds or other obligations may be issued to
13-10 mature serially or otherwise in not to exceed 40 years from their
13-11 date of issuance, and provision may be made for the subsequent
13-12 issuance of additional parity obligations, or subordinate lien
13-13 obligations, under terms or conditions that may be set forth in the
13-14 ordinance authorizing the issuance of the obligations.
13-15 (4) Those bonds or other obligations are negotiable
13-16 instruments within the meaning of Chapter 8, Business & Commerce
13-17 Code.
13-18 (5) Those bonds and other obligations shall be
13-19 executed and made redeemable before maturity, issued in the form,
13-20 denominations, and manner, and under the terms, conditions, and
13-21 details, and sold in the manner, at the price and under the terms
13-22 provided by the bond ordinance.
13-23 (6) Those bonds and/or other obligations shall bear
13-24 interest at rates provided in the ordinance authorizing the issue
13-25 of the bonds or other obligations.
14-1 (7) If provided in the bond ordinance, the proceeds
14-2 from the sale of the bonds or other obligations may be used for
14-3 paying interest on those bonds or other obligations during the
14-4 period of the acquisition or construction of any facilities to be
14-5 provided through the issuance of the bonds or other obligations,
14-6 paying expenses of operation and maintenance of facilities,
14-7 creating a reserve fund for the payment of principal of and
14-8 interest on the bonds or other obligations, and creating any other
14-9 funds.
14-10 (8) The proceeds from the sale of the bonds or other
14-11 obligations may be placed on time deposit or invested to the extent
14-12 and in the manner provided by the bond ordinance.
14-13 (9) The regional utility may pledge all or any part of
14-14 its revenue, income, or receipts from fees, rentals, rates, charges
14-15 or contract proceeds or payments to the payment of such bonds or
14-16 other obligations, including the payment of principal, interest,
14-17 and any other amounts required or permitted in connection with the
14-18 bonds or other obligations. The pledged fees, rentals, rates,
14-19 charges, proceeds, or payments shall be established and collected
14-20 in amounts that will be at least sufficient, together with any
14-21 other pledged resources to provide for the payment of expenses in
14-22 connection with the bonds or other obligations and for the
14-23 operation, maintenance, and other expenses in connection with those
14-24 facilities.
14-25 (10) Such bonds and other obligations may be
15-1 additionally secured by mortgages or deeds of trust on real
15-2 property owned or to be acquired by the regional utility, and by
15-3 chattel mortgages or liens on any personal property appurtenant to
15-4 the real property. The regional utility may authorize the
15-5 execution of trust indentures, mortgages, deeds of trust, or other
15-6 forms of encumbrances. Also, it may pledge to the payment of the
15-7 obligations all or any part of any grant, donation, revenue, or
15-8 income received or to be received from the United States government
15-9 or any other public or private source.
15-10 (11) The regional utility is the issuer within the
15-11 meaning of Chapter 53, Acts of the 70th Legislature, 2nd Called
15-12 Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes), and
15-13 bonds issued pursuant to this Act, and the appropriate proceedings
15-14 authorizing their issuance must be submitted to the attorney
15-15 general for examination, if required to be submitted by Chapter 53,
15-16 Acts of the 70th Legislature, 2nd Called Session, 1987 (Article
15-17 717k-8, Vernon's Texas Civil Statutes). If the bonds recite that
15-18 they are secured by a pledge of revenue from a contract, a copy of
15-19 the contract and the proceedings relating to the contract must be
15-20 submitted to the attorney general. If the attorney general finds
15-21 that the bonds are authorized and the contract is entered in
15-22 accordance with law, the attorney general shall approve the bonds
15-23 and the contract, and the bonds shall be registered by the
15-24 Comptroller. After approval and registration, the bonds and the
15-25 contract are incontestable in any court or other forum for any
16-1 reason, and are valid and binding obligations in accordance with
16-2 their terms for all purposes.
16-3 (12) The regional utility shall issue its bonds and
16-4 other obligations in accordance with Chapter 656, Acts of the 68th
16-5 Legislature, Regular Session, 1983 (Article 717q, Vernon's Civil
16-6 Statutes), and the Bond Procedures Act of 1981 (Article 717k-6,
16-7 Vernon's Texas Civil Statutes), as applicable.
16-8 (c)(1) The regional utility may enter into contracts with
16-9 any public or private party or body considered necessary in the
16-10 exercise of the powers and purposes of the regional utility under
16-11 this Act. This authority shall extend to those areas outside of
16-12 the municipal jurisdiction of the city.
16-13 (2) Pursuant to provisions of the preceding
16-14 sub-paragraph, the regional utility may enter into contracts for
16-15 the acquisition, purchase, rental, lease, or operations of the
16-16 water production, water supply, water filtration or purification,
16-17 water supply facilities, or other water or wastewater facilities
16-18 that are owned or operated by the contracting party.
16-19 (3) Contracts that require a payment of money by the
16-20 regional utility may be made payable from any general or specific
16-21 source of funds.
16-22 (d) So long as the regional utility complies with the
16-23 applicable provisions of section 6 of this act, and except as
16-24 expressly limited in this act, the rights and powers described in
16-25 this act shall prevail over any limitations contained in any other
17-1 law.
17-2 (e) Notwithstanding any other provisions of this act, this
17-3 act shall not operate to authorize the regional utility to condemn
17-4 land owned by the state and shall not authorize the regional
17-5 utility to condemn land or assets owned by any other political
17-6 subdivision of the state outside of the city's municipal
17-7 jurisdiction including the districts.
17-8 (f) Except to the extent of any tax obligation imposed by
17-9 any district and necessary to retire any debt existing on the date
17-10 of consolidation as hereinafter provided, this act shall not
17-11 operate to allow the regional utility to tax property outside of
17-12 the city's corporate limits.
17-13 SECTION 6. CONSOLIDATION OF DISTRICTS (a) The regional
17-14 utility shall have the authority to consolidate one or more of the
17-15 districts into the regional utility upon the occurrence of one or
17-16 more of the following events:
17-17 (1) a majority vote of the board of directors of a
17-18 district operating as a water supply corporation or investor owned
17-19 utility;
17-20 (2) a majority vote of the board of directors of a
17-21 district other than a water supply corporation to dissolve the
17-22 district by consolidation into the regional utility, followed by an
17-23 election in the district, at the earliest available uniform
17-24 election date, of the majority vote by the board of directors of
17-25 the district to dissolve the district by consolidation at which a
18-1 majority of the voters voting in the election vote to dissolve the
18-2 district by consolidation into the regional utility;
18-3 (3) on the filing of a petition with the County Judge
18-4 signed by ten percent (10%) of the registered voters of the subject
18-5 district, followed by an election on an order by the board of
18-6 directors of the district. An election held in accordance with
18-7 this procedure must be held on the next available uniform election
18-8 date following certification of the petition in accordance with
18-9 Section 41.001 of the Texas Election Code.
18-10 (b) Notwithstanding the occurrence of a vote or election as
18-11 provided in (a) above, as to each district with bonds, notes,
18-12 obligations, or taxes owed, contracted, or authorized at the time
18-13 of the district's vote into the regional utility consolidation of a
18-14 district into the regional utility shall not be final and effective
18-15 until:
18-16 (1) the boards of directors of the regional utility
18-17 and the district have entered into a consolidation agreement; and
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; and
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 Texas Election Code,
19-7 as amended, and all applicable election law.
19-8 (d) At all times prior to final consolidation of a district
19-9 which has debts or other obligations which may be owed, contracted,
19-10 or authorized, the district shall:
19-11 (1) protect the assets of the district and insure that
19-12 they are not impaired;
19-13 (2) where applicable and necessary, assess and collect
19-14 taxes on property in the district to pay debts created by the
19-15 district; and
19-16 (3) pay debts of the district and manage the assets of
19-17 the district through the sale, lease or other management of
19-18 district lands.
19-19 (e) If taxes were levied on land within a district
19-20 consolidated into the regional utility at the time of
19-21 consolidation, and if taxes are necessary to retire existing debt,
19-22 the regional utility shall continue to assess and collect the
19-23 taxes, but the regional utility shall not increase tax rates in the
19-24 district in order to retire debts of the district unless such
19-25 increase is authorized as provided by existing law.
20-1 (f) Consolidation shall be achieved in such a way that it
20-2 does not violate existing bond covenants and other contractual
20-3 obligations of the city, and its public service board or any
20-4 district and does not adversely affect their bond rating.
20-5 (g) The regional utility may apply to the Texas Water
20-6 Development Board for up to $3 million appropriated during the
20-7 1994-95 biennium for grants or loans to encourage and facilitate
20-8 the regionalization of water and wastewater services in counties
20-9 directly adjacent to the international border with Mexico through
20-10 Section 15.102 Water Code. Any funds awarded pursuant to this
20-11 provision shall be used by the regional utility to purchase and
20-12 refinance district debt in order to achieve a reasonable cost of
20-13 service to existing customers and facilitate consolidation of water
20-14 and wastewater services in the county.
20-15 SECTION 7. UTILITY SERVICE RATES. (a) The regional utility
20-16 may establish fees and charges for initiating service to service
20-17 applicants and rates, fees and charges for utility service provided
20-18 to retail customers in the expanded service area or to wholesale
20-19 customers outside the expanded service areas. Notwithstanding
20-20 Section 16.349(b) of the Texas Water Code, the regional utility may
20-21 charge retail service applicants and customers in an area outside
20-22 the corporate boundaries of the city rates for utility service
20-23 actually provided based on the actual, documentable cost of
20-24 providing that service even if the rates so charged exceed the
20-25 rates charged by the utility to ratepayers inside the corporate
21-1 boundaries of the city.
21-2 (b) The regional utility shall not use utility revenues
21-3 received from ratepayers inside the corporate boundaries of the
21-4 city to subsidize costs of providing utility service to ratepayers
21-5 outside the boundaries of the city nor shall it use utility
21-6 revenues received from retail ratepayers outside the city to
21-7 subsidize costs of providing utility service inside the city. The
21-8 utility shall not pay to or deposit in the general revenue fund
21-9 revenues received from the rates charged to retail customers
21-10 outside the city except as required by any existing bond covenant
21-11 or by any future bond covenant unless the new bonds which are
21-12 issued are used to fund utility services to ratepayers outside the
21-13 corporate boundaries of the city.
21-14 (c) Ratepayers of the regional utility residing outside the
21-15 boundaries of the city shall have all rights provided in Chapter
21-16 13, Texas Water Code, as applicable.
21-17 SECTION 8. PROVISION OF UTILITY SERVICE. (a) As a
21-18 condition of providing utility service, the regional utility may
21-19 require that all development in the county meet the minimum
21-20 construction and development standards established by the Texas
21-21 Water Development Board for economically distressed areas in
21-22 accordance with the Texas Water Code, Section 16.343 and as adopted
21-23 by the county, and comply with the Rules and Regulation Number 11
21-24 of the PSB concerning extension of utility services outside of the
21-25 city limits to the extent that they do not conflict with any
22-1 provisions of this act and the plans developed pursuant to Section
22-2 3(b) of this act.
22-3 (b) Upon consolidation of a district into the regional
22-4 utility, the regional utility shall be required to provide utility
22-5 service to those residents of the district pursuant to the
22-6 provisions of the regional water supply and wastewater facilities
22-7 plan developed pursuant to Section 3(b) of this act.
22-8 Notwithstanding any other provision in this act, any water supply
22-9 or wastewater facilities being constructed or designed on the
22-10 effective date of this act through grants from the Texas Water
22-11 Development Board or Farmers Home Administration shall be continued
22-12 by the regional utility uninterrupted by any delay and be
22-13 incorporated into the regional water supply and wastewater
22-14 facilities plan developed pursuant to section 3(b) of this act.
22-15 (c) In order to plan for regional utility service within the
22-16 county, the regional utility shall include land which belongs to
22-17 the permanent school fund of the state within a regional plan. In
22-18 such event, the provisions of a regional plan shall be binding upon
22-19 permanent school fund land only after the regional utility provides
22-20 acceptable utility service commitments to the affected land and
22-21 obtains the written consent of the school land board in accordance
22-22 with its Rules and Regulations.
22-23 SECTION 9. SEVERABILITY AND CONSTRUCTION. (a) If any
22-24 provisions of this Act or the application thereof to any person or
22-25 circumstances be held invalid, such invalidity shall not affect
23-1 other provisions or applications of this Act that can be given
23-2 effect without the invalid provision or application, and to this
23-3 end the provisions of this Act are declared to be severable. All
23-4 the terms and provisions of this Act are declared severable. All
23-5 the terms and provisions of this Act are to be liberally construed
23-6 to effectuate the purpose, powers, rights, functions, and
23-7 authorities herein set forth.
23-8 (b) Nothing contained in this act, however, shall be
23-9 construed to limit the power of the governing body of the city to
23-10 control the governing body of the city's water and wastewater
23-11 utility systems as provided for in Articles 1111 and 1115 Tex. Rev.
23-12 Civ. Stat.
23-13 (c) Nothing contained in this act shall be construed to
23-14 require the city or the governing body of the city's water and
23-15 wastewater utility systems to provide services other than the water
23-16 and wastewater services described herein.
23-17 SECTION 10. The importance of this legislation and the
23-18 crowded condition of the calendars in both houses create an
23-19 emergency and an imperative public necessity that the
23-20 constitutional rule requiring bills to be read on three several
23-21 days in each house be suspended, and this rule is hereby suspended
23-22 and this act shall be effective on passage.