1-1 By: Rosson S.B. No. 1374
1-2 (In the Senate - Filed April 14, 1993; April 15, 1993, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 29, 1993, reported favorably by the following
1-5 vote: Yeas 8, Nays 0; April 29, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Armbrister x
1-9 Leedom x
1-10 Carriker x
1-11 Henderson x
1-12 Madla x
1-13 Moncrief x
1-14 Patterson x
1-15 Rosson x
1-16 Shapiro x
1-17 Wentworth x
1-18 Whitmire x
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to the regionalization of utility services in El Paso
1-22 County by providing for consolidation of certain water and
1-23 wastewater service corporations and utility districts into a
1-24 regional utility, and methods for planning, funding including the
1-25 issuance of bonds, and operation of a regional utility.
1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 SECTION 1. DEFINITIONS. In this Act:
1-28 (1) "Assets" means all physical assets, contract
1-29 rights, water rights, and all other rights or privileges of any
1-30 kind or nature which belong to a district.
1-31 (2) "City" means the City of El Paso, a home-rule city
1-32 pursuant to the laws of the State of Texas.
1-33 (3) "City's municipal jurisdiction" means the city's
1-34 authority within the city limits and the extraterritorial
1-35 jurisdiction of the city.
1-36 (4) "Commission" means the Texas Natural Resource
1-37 Conservation Commission.
1-38 (5) "Committee" means the interim and permanent
1-39 Regional Utility Advisory Committee as hereinafter created.
1-40 (6) "County" means El Paso County.
1-41 (7) "Debts" means bonded indebtedness and all
1-42 contractual obligations, claims, judgments, and contingent
1-43 liabilities for which a person or entity is legally liable.
1-44 (8) "Districts" means the following: Deerfield Park
1-45 Water Supply Corporation, East El Paso Water Supply Corporation, El
1-46 Paso County Lower Valley Water District Authority, El Paso County
1-47 Water Authority, El Paso County Water Control and Improvement
1-48 District No. 4, El Paso County Tornillo Water Improvement District,
1-49 El Paso County Water Control and Improvement District--Westway,
1-50 Homestead Municipal Utility District, Haciendas del Norte Water
1-51 Improvement District, San Elizario Grant Municipal Utility
1-52 District, Tornillo Water Supply Corporation, any other water supply
1-53 corporation, or any other district in the county created by
1-54 Article XVI, Section 59, of the Texas Constitution providing
1-55 utility service as defined herein and located in the county, but
1-56 excluding the El Paso County Water Improvement District No. 1.
1-57 (9) "PSB" means the Public Service Board, a board of
1-58 trustees having management and control of the water and wastewater
1-59 utility systems of the city as established through the encumbrances
1-60 of the system as provided in Article 1115, Revised Statutes,
1-61 Ordinance No. 752 (May 22, 1952) and any subsequent ordinance
1-62 adopted by the city authorizing the issuance of water and
1-63 wastewater system revenue bonds.
1-64 (10) "Regional utility" means the city, acting through its
1-65 water and wastewater utility systems.
1-66 (11) "Regional service" means water and wastewater
1-67 services.
1-68 SECTION 2. PURPOSES OF ACT. The purposes of this Act are:
2-1 (1) to encourage and provide for the orderly
2-2 consolidation of the districts in the county into a regional
2-3 utility in order to:
2-4 (A) ensure the provision of utility services to
2-5 all residents of the county at the lowest possible cost according
2-6 to a regional plan;
2-7 (B) eliminate unnecessary competition by the
2-8 districts for limited water, financial, and other valuable
2-9 resources;
2-10 (C) take advantage of economies of scale with
2-11 regard to the provision of utility services in the county; and
2-12 (D) conjunctively manage the limited resources
2-13 of surface water and groundwater of the county so that the
2-14 integrity and quality of these limited resources are protected and
2-15 extended to the greatest extent reasonably possible;
2-16 (2) to enable the city, acting through its water and
2-17 wastewater utility as managed and operated by the PSB, or the city
2-18 council as the case may be, to operate as the regional utility in
2-19 the county;
2-20 (3) to give the regional utility the authority to
2-21 plan, operate, and provide for utility services on a regional
2-22 basis;
2-23 (4) to provide a framework for the management and
2-24 operation of a regional utility within and outside of the city's
2-25 municipal jurisdiction;
2-26 (5) to provide for the assumption of the assets and
2-27 debts of the districts on consolidation into a regional utility;
2-28 and
2-29 (6) to authorize the regional utility to provide water
2-30 and wastewater services outside of the extraterritorial
2-31 jurisdiction of the city with the ability to contract and to issue
2-32 its bonds to buy, own, and construct facilities outside of the
2-33 municipal jurisdiction.
2-34 SECTION 3. DESIGNATION OF CITY AS EL PASO COUNTY REGIONAL
2-35 UTILITY. (a) On the enactment of an enabling resolution by the
2-36 City Council of the City of El Paso, the city, through its water
2-37 and wastewater utility systems as managed by its PSB or by the city
2-38 council, as the case may be, is hereby designated as the regional
2-39 utility provider in the county for the purpose of providing utility
2-40 services within the county. After the enactment of the enabling
2-41 resolution by the City Council of the City of El Paso, the
2-42 obligation of the regional utility to act as the regional utility
2-43 provider as provided by the terms of this Act shall continue in
2-44 full force and effect and shall only be amended or abolished by the
2-45 Legislature of the State of Texas.
2-46 (b) On enactment of the enabling resolution of the city
2-47 council of the city or on the effective date of this Act, whichever
2-48 is later, the regional utility shall:
2-49 (1) file an application with the Texas Water
2-50 Development Board for a regional water supply and wastewater
2-51 facilities planning grant study pursuant to the provisions of
2-52 Section 15.406, Water Code, and the applicable rules promulgated by
2-53 the Texas Water Development Board. In the event of approval of the
2-54 application by the Texas Water Development Board pursuant to the
2-55 statute and rules, the regional utility shall enter into a contract
2-56 with the Texas Water Development Board to conduct a regional water
2-57 supply and wastewater facilities planning study which shall include
2-58 all of the county and incorporate any water supply and wastewater
2-59 facilities currently being designed or constructed in the county.
2-60 Results of this planning effort shall be completed within 12 months
2-61 after execution of a contract with the Texas Water Development
2-62 Board and shall result in a plan which shall include an
2-63 implementation schedule and associated preliminary costs for water
2-64 and wastewater facilities to provide service and a financial plan
2-65 and rate study to meet the projected water and wastewater needs
2-66 within the county to the year 2040. The regional utility shall
2-67 review the plan every five years to consider any amendment or
2-68 modification that may be needed because of changed conditions. The
2-69 regional utility shall amend or modify the plan as experience and
2-70 changed conditions require. Any such amendment or modification
3-1 becomes a part of the plan; and
3-2 (2) file an application with the Texas Water
3-3 Development Board for a regional water supply planning grant
3-4 pursuant to the provisions of Section 15.406, Water Code, and the
3-5 applicable rules promulgated by the Texas Water Development Board.
3-6 In the event of approval of the application by the Texas Water
3-7 Development Board pursuant to the applicable statute and rules, the
3-8 regional utility shall enter into a contract with the Texas Water
3-9 Development Board for the preparation of a regional water supply
3-10 planning study which shall include all of the county. Results of
3-11 the planning effort shall be completed within six months after
3-12 execution of a contract with the Texas Water Development Board and
3-13 shall result in a plan which shall identify projected water demands
3-14 and available and potential supplies to meet the water supply needs
3-15 within the county to the year 2040.
3-16 (c) Subject to the provisions of all outstanding water or
3-17 wastewater system revenue bonds of the city, the regional utility
3-18 shall serve any area or areas within the county, is hereby
3-19 designated as the utility service provider within the county, and
3-20 shall receive priority consideration for purposes of state funding.
3-21 (d) As the regional utility provider, the regional utility
3-22 shall receive priority consideration for purposes of state funding
3-23 of regional planning for the provision of utility service outside
3-24 the city's municipal jurisdiction. The regional utility may enter
3-25 into agreements and cooperative projects with political
3-26 subdivisions and other governmental entities in this state, the
3-27 State of New Mexico, the International Boundary and Water
3-28 Commission, and the Republic of Mexico or any responsible political
3-29 subdivision thereof to:
3-30 (1) promote regional planning for the provision of
3-31 utility services;
3-32 (2) promote regional planning which is consistent with
3-33 the United States-Mexico integrated border plan;
3-34 (3) coordinate the regional planning with the
3-35 comprehensive state water plan;
3-36 (4) finance or seek financing for the water and
3-37 wastewater infrastructure, especially in economically distressed
3-38 areas;
3-39 (5) provide for regional drought and water supply
3-40 management;
3-41 (6) collect and disseminate water and wastewater
3-42 regional data;
3-43 (7) coordinate state level financial and technical
3-44 assistance in extending or creating water and wastewater service;
3-45 (8) promote conservation planning, education, and
3-46 research of surface water and groundwater resources;
3-47 (9) promote preservation of human health and the
3-48 environment;
3-49 (10) promote water quality; and
3-50 (11) accomplish any other related regional utility
3-51 purpose.
3-52 SECTION 4. ORGANIZATION OF THE REGIONAL UTILITY ADVISORY
3-53 COMMITTEE. (a) Within 30 days of the resolution of the city
3-54 council provided for in Subsection (a) of Section 3 of this Act
3-55 there shall be created a committee known as the Regional Utility
3-56 Advisory Committee, consisting during the first terms of office of
3-57 nine appointed members. Of these nine members, the commissioners
3-58 court of the county shall appoint five members and the city shall
3-59 appoint four members. Of the five members appointed by the
3-60 commissioners court:
3-61 (1) one appointee shall be a qualified voter residing
3-62 within the jurisdiction of the El Paso County Lower Valley Water
3-63 District Authority;
3-64 (2) one appointee shall be a qualified voter residing
3-65 within the jurisdiction of the El Paso County Water Authority;
3-66 (3) one appointee shall be a qualified voter residing
3-67 within the jurisdiction of either the El Paso County Water Control
3-68 and Improvement District--Westway or the City of Anthony Water
3-69 Utility;
3-70 (4) one appointee shall be a qualified voter residing
4-1 within the jurisdiction or the service area of Deerfield Park Water
4-2 Supply Corporation, East El Paso Water Supply Corporation,
4-3 Homestead Municipal Utility District, or Haciendas del Norte Water
4-4 Improvement District; and
4-5 (5) one appointee shall be a qualified voter residing
4-6 within the jurisdiction or service area of El Paso County Tornillo
4-7 Water Improvement District, Tornillo Water Supply Corporation, El
4-8 Paso County Water Control and Improvement District No. 4, or San
4-9 Elizario Grant Municipal Utility District.
4-10 (b) The terms for these interim committee members shall be
4-11 three years. After the expiration of the terms of office of the
4-12 interim nine-member committee, the permanent committee shall
4-13 consist of seven members, five of whom are to be appointed by the
4-14 commissioners court of the county and two of whom are to be jointly
4-15 appointed by the mayors of the incorporated municipalities, other
4-16 than the city, within the county. The duties of both the interim
4-17 and permanent committees shall be to act as an advisory body to the
4-18 regional utility on matters related to:
4-19 (1) the priorities in the provision of utility
4-20 services;
4-21 (2) the rates and charges for the services outside of
4-22 the corporate limits of the city;
4-23 (3) regional planning;
4-24 (4) adoption of or amendments to rules and regulations
4-25 affecting provision of utility service outside of the corporate
4-26 limits of the city; and
4-27 (5) any other matter requested by the regional
4-28 authority.
4-29 (c) Each member of the permanent committee appointed by the
4-30 commissioners court of the county shall be a qualified voter
4-31 residing within the county and outside the city's municipal
4-32 jurisdiction. Each member of the committee appointed by the mayors
4-33 of the other incorporated cities within the county shall be a
4-34 qualified voter residing within the county and within one or the
4-35 other of the incorporated municipalities other than the city. Each
4-36 member of both the interim and permanent committees shall also be
4-37 over 18 years of age and shall have resided in the county for a
4-38 minimum of six months immediately prior to the date of appointment.
4-39 (d) Two of the members of the permanent committee appointed
4-40 by the commissioners court of the county and the two members
4-41 appointed by the mayors of the incorporated municipalities in the
4-42 county shall serve for three years. All other members of the
4-43 permanent committee, after the first term of the first four members
4-44 of the permanent committee, shall be appointed to serve two-year
4-45 terms. A vacancy on the permanent committee shall be filled by
4-46 appointment for the unexpired term by the commissioners court or
4-47 the mayors of the incorporated municipalities, whichever appointed
4-48 the member whose seat was vacated.
4-49 (e) A person is disqualified from serving as a member of
4-50 either committee if:
4-51 (1) he is related within the third degree of affinity
4-52 or consanguinity to:
4-53 (A) a developer of property in the county;
4-54 (B) any elected official of the city or county;
4-55 (C) any manager of the regional utility; or
4-56 (D) any other member of the committee;
4-57 (2) he is an employee or officer of:
4-58 (A) any developer of property in the county;
4-59 (B) any elected official of the city, other
4-60 incorporated cities within the county, or the county;
4-61 (C) any manager of the regional utility; or
4-62 (D) any manager, engineer, or attorney for a
4-63 district, the county, the city, or other incorporated municipality
4-64 within the county;
4-65 (3) he is a developer of property in the county;
4-66 (4) he is serving as an attorney, consultant,
4-67 engineer, manager, architect, or in some other professional
4-68 capacity for the regional utility, the county, a district or an
4-69 incorporated city within the county, or for a developer of property
4-70 within the county in connection with the regional utility service;
5-1 or
5-2 (5) he is a party to a contract with or along with the
5-3 regional utility except for the purchase of public services
5-4 furnished by the regional utility to the public generally.
5-5 SECTION 5. ADDITIONAL RIGHTS AND POWERS OF THE REGIONAL
5-6 UTILITY. (a) For the purposes of providing utility service and
5-7 operating a regional utility in the county, the regional utility
5-8 shall have all powers and authority provided in Sections 402.001
5-9 and 402.002, Local Government Code. The regional utility shall
5-10 specifically have the authority to apply for and obtain grants and
5-11 loans for the purpose of providing utility service outside of the
5-12 city's municipal jurisdiction and for the purpose of funding and
5-13 providing for regional projects with other states and the Republic
5-14 of Mexico. This Act authorizes the regional utility pursuant to the
5-15 regional water supply and wastewater facilities plan prepared
5-16 pursuant to Subsection (b) of Section 3 of this Act to:
5-17 (1) contract with other local governments,
5-18 municipalities, districts, river authorities, or other state or
5-19 governmental entities within this state, within other states, and
5-20 within the Republic of Mexico;
5-21 (2) obtain grants and loans to provide utility service
5-22 outside of the city's municipal jurisdiction;
5-23 (3) provide for planning and construction of regional
5-24 projects including water supply or wastewater treatment facilities;
5-25 and
5-26 (4) otherwise promote the regionalization of utility
5-27 services within the county and surrounding areas.
5-28 (b)(1) For the purposes of providing utility service and
5-29 operating a regional utility in the county outside of the municipal
5-30 jurisdiction of the city, the regional utility may issue its
5-31 revenue bonds, notes, revenue anticipation notes, bond anticipation
5-32 notes, short-term obligations, refunding bonds, or other
5-33 obligations for any of its purposes without an election and on
5-34 terms the city council of the city determines to be appropriate.
5-35 (2) Obligations may be made payable from all or part
5-36 of the revenues of the regional utility derived from any lawful
5-37 source, including any contract with any customer or user of the
5-38 facilities owned or operated by the regional utility under this Act
5-39 or from the ownership and operation of any waterworks system,
5-40 wastewater system, sewer system, solid waste disposal system,
5-41 nonhazardous liquid waste system, or any combination of those
5-42 systems. Additionally, those obligations may be paid from and
5-43 secured by liens on and pledges of all or part of any of the
5-44 revenue, income, or receipts derived by the regional utility from
5-45 its ownership, operation, lease, or sale of the property,
5-46 buildings, structures, or facilities, including the proceeds or
5-47 revenues from contracts with any person, firm, corporation,
5-48 municipality, public agency, or other political subdivision or
5-49 entity.
5-50 (3) Bonds or other obligations may be issued to mature
5-51 serially or otherwise in not to exceed 40 years from their date of
5-52 issuance, and provision may be made for the subsequent issuance of
5-53 additional parity obligations or subordinate lien obligations under
5-54 terms or conditions that may be set forth in the ordinance
5-55 authorizing the issuance of the obligations.
5-56 (4) The bonds or other obligations are negotiable
5-57 instruments within the meaning of Chapter 8, Business & Commerce
5-58 Code.
5-59 (5) The bonds or other obligations shall be executed
5-60 and made redeemable before maturity, issued in the form,
5-61 denominations, and manner and under the terms, conditions, and
5-62 details, and sold in the manner, at the price, and under the terms
5-63 provided by the bond ordinance.
5-64 (6) The bonds or other obligations shall bear interest
5-65 at rates provided in the ordinance authorizing the issue of the
5-66 bonds or other obligations.
5-67 (7) If provided in the bond ordinance, the proceeds
5-68 from the sale of the bonds or other obligations may be used for
5-69 paying interest on those bonds or other obligations during the
5-70 period of the acquisition or construction of any facilities to be
6-1 provided through the issuance of the bonds or other obligations,
6-2 paying expenses of operation and maintenance of facilities,
6-3 creating a reserve fund for the payment of principal of and
6-4 interest on the bonds or other obligations, and creating any other
6-5 funds.
6-6 (8) The proceeds from the sale of the bonds or other
6-7 obligations may be placed on time deposit or invested to the extent
6-8 and in the manner provided by the bond ordinance.
6-9 (9) The regional utility may pledge all or any part of
6-10 its revenue, income, or receipts from fees, rentals, rates,
6-11 charges, or contract proceeds or payments to the payment of such
6-12 bonds or other obligations, including the payment of principal,
6-13 interest, and any other amounts required or permitted in connection
6-14 with the bonds or other obligations. The pledged fees, rentals,
6-15 rates, charges, proceeds, or payments shall be established and
6-16 collected in amounts that will be at least sufficient, together
6-17 with any other pledged resources, to provide for the payment of
6-18 expenses in connection with the bonds or other obligations and for
6-19 the operation, maintenance, and other expenses in connection with
6-20 those facilities.
6-21 (10) Such bonds and other obligations may be
6-22 additionally secured by mortgages or deeds of trust on real
6-23 property owned or to be acquired by the regional utility and by
6-24 chattel mortgages or liens on any personal property appurtenant to
6-25 the real property. The regional utility may authorize the
6-26 execution of trust indentures, mortgages, deeds of trust, or other
6-27 forms of encumbrances. It may pledge to the payment of the
6-28 obligations all or any part of any grant, donation, revenue, or
6-29 income received or to be received from the United States government
6-30 or any other public or private source.
6-31 (11) The regional utility is the issuer within the
6-32 meaning of Chapter 53, Acts of the 70th Legislature, 2nd Called
6-33 Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes), and
6-34 bonds issued pursuant to this Act and the appropriate proceedings
6-35 authorizing their issuance must be submitted to the attorney
6-36 general for examination if required to be submitted by Chapter 53,
6-37 Acts of the 70th Legislature, 2nd Called Session, 1987 (Article
6-38 717k-8, Vernon's Texas Civil Statutes). If the bonds recite that
6-39 they are secured by a pledge of revenue from a contract, a copy of
6-40 the contract and the proceedings relating to the contract must be
6-41 submitted to the attorney general. If the attorney general finds
6-42 that the bonds are authorized and the contract is entered in
6-43 accordance with law, the attorney general shall approve the bonds
6-44 and the contract, and the bonds shall be registered by the
6-45 comptroller. After approval and registration, the bonds and the
6-46 contract are incontestable in any court or other forum for any
6-47 reason and are valid and binding obligations in accordance with
6-48 their terms for all purposes.
6-49 (12) The regional utility shall issue its bonds and
6-50 other obligations in accordance with Chapter 656, Acts of the 68th
6-51 Legislature, Regular Session, 1983 (Article 717q, Vernon's Civil
6-52 Statutes), and the Bond Procedures Act of 1981 (Article 717k-6,
6-53 Vernon's Texas Civil Statutes), as applicable.
6-54 (c)(1) The regional utility may enter into contracts with
6-55 any public or private party or body considered necessary in the
6-56 exercise of the powers and purposes of the regional utility under
6-57 this Act. This authority shall extend to those areas outside of
6-58 the municipal jurisdiction of the city.
6-59 (2) Pursuant to provisions of Subdivision (1) of this
6-60 subsection, the regional utility may enter into contracts for the
6-61 acquisition, purchase, rental, lease, or operations of the water
6-62 production, water supply, water filtration or purification, water
6-63 supply facilities, or other water or wastewater facilities that are
6-64 owned or operated by the contracting party.
6-65 (3) Contracts that require a payment of money by the
6-66 regional utility may be made payable from any general or specific
6-67 source of funds.
6-68 (d) So long as the regional utility complies with the
6-69 applicable provisions of Section 6 of this Act and except as
6-70 expressly limited in this Act, the rights and powers described in
7-1 this Act shall prevail over any limitations contained in any other
7-2 law.
7-3 (e) Notwithstanding any other provisions of this Act, this
7-4 Act shall not operate to authorize the regional utility to condemn
7-5 land owned by the state and shall not authorize the regional
7-6 utility to condemn land or assets owned by any other political
7-7 subdivision of the state outside of the city's municipal
7-8 jurisdiction including the districts.
7-9 (f) Except to the extent of any tax obligation imposed by
7-10 any district and necessary to retire any debt existing on the date
7-11 of consolidation as hereinafter provided, this Act shall not
7-12 operate to allow the regional utility to tax property outside of
7-13 the city's corporate limits.
7-14 SECTION 6. CONSOLIDATION OF DISTRICTS. (a) The regional
7-15 utility shall have the authority to consolidate one or more of the
7-16 districts into the regional utility on the occurrence of one or
7-17 more of the following events:
7-18 (1) a majority vote of the board of directors of a
7-19 district operating as a water supply corporation or investor-owned
7-20 utility;
7-21 (2) a majority vote of the board of directors of a
7-22 district other than a water supply corporation to dissolve the
7-23 district by consolidation into the regional utility, followed by an
7-24 election in the district, at the earliest available uniform
7-25 election date, at which a majority of the voters voting in the
7-26 election vote to dissolve the district by consolidation into the
7-27 regional utility;
7-28 (3) on the filing of a petition with the county judge
7-29 signed by 10 percent of the registered voters of the subject
7-30 district, followed by an election on an order by the board of
7-31 directors of the district. An election held in accordance with
7-32 this procedure must be held on the next available uniform election
7-33 date following certification of the petition in accordance with
7-34 Section 41.001, Election Code.
7-35 (b) Notwithstanding the occurrence of a vote or election as
7-36 provided in Subsection (a) of this section, as to each district
7-37 with bonds, notes, obligations, or taxes owed, contracted, or
7-38 authorized at the time of the district's vote on consolidation of a
7-39 district into the regional utility shall not be final and effective
7-40 until:
7-41 (1) the boards of directors of the regional utility
7-42 and the district have entered into a consolidation agreement;
7-43 (2) as to each district other than a district
7-44 operating as a water supply corporation, the board has ordered and
7-45 held an election in the district at which a majority of voters
7-46 voting in the election approved the terms and conditions of the
7-47 consolidation agreement;
7-48 (3) the district's debts, bonds, notes, obligations
7-49 and taxes, as applicable, have been paid in full, assumed, or
7-50 satisfactorily addressed in the consolidation agreement; and
7-51 (4) a regional utility consolidation order has been
7-52 filed by the regional utility in the real property records of the
7-53 county and the Texas Water Commission.
7-54 (c) If an election is required to be held in a district for
7-55 the purposes of consolidation into the regional utility, then the
7-56 election shall be held in conformity with the Election Code and all
7-57 applicable election law.
7-58 (d) At all times prior to final consolidation of a district
7-59 which has debts or other obligations which may be owed, contracted,
7-60 or authorized, the district shall:
7-61 (1) protect the assets of the district and ensure that
7-62 they are not impaired;
7-63 (2) where applicable and necessary, assess and collect
7-64 taxes on property in the district to pay debts created by the
7-65 district; and
7-66 (3) pay debts of the district and manage the assets of
7-67 the district through the sale, lease, or other management of
7-68 district lands.
7-69 (e) If taxes were levied on land within a district
7-70 consolidated into the regional utility at the time of consolidation
8-1 and if taxes are necessary to retire existing debt, the regional
8-2 utility shall continue to assess and collect the taxes, but the
8-3 regional utility shall not increase tax rates in the district in
8-4 order to retire debts of the district unless such increase is
8-5 authorized as provided by existing law.
8-6 (f) Consolidation shall be achieved in such a way that it
8-7 does not violate existing bond covenants and other contractual
8-8 obligations of the city and its public service board or any
8-9 district and does not adversely affect their bond ratings.
8-10 (g) The regional utility may apply to the Texas Water
8-11 Development Board for up to $3 million appropriated during the
8-12 1994-1995 biennium for grants or loans to encourage and facilitate
8-13 the regionalization of water and wastewater services in counties
8-14 directly adjacent to the international border with the Republic of
8-15 Mexico through Section 15.102, Water Code. Any funds awarded
8-16 pursuant to this provision shall be used by the regional utility to
8-17 purchase and refinance district debt in order to achieve a
8-18 reasonable cost of service to existing customers and facilitate
8-19 consolidation of water and wastewater services in the county.
8-20 SECTION 7. UTILITY SERVICE RATES. (a) The regional utility
8-21 may establish fees and charges for initiating service to service
8-22 applicants and rates, fees, and charges for utility service
8-23 provided to retail customers in the expanded service area or to
8-24 wholesale customers outside the expanded service areas.
8-25 Notwithstanding Subsection (b), Section 16.349, Water Code, the
8-26 regional utility may charge retail service applicants and customers
8-27 in an area outside the corporate boundaries of the city rates for
8-28 utility service actually provided based on the actual, documentable
8-29 cost of providing that service even if the rates so charged exceed
8-30 the rates charged by the utility to ratepayers inside the corporate
8-31 boundaries of the city.
8-32 (b) The regional utility shall not use utility revenues
8-33 received from ratepayers inside the corporate boundaries of the
8-34 city to subsidize costs of providing utility service to ratepayers
8-35 outside the boundaries of the city nor shall it use utility
8-36 revenues received from retail ratepayers outside the city to
8-37 subsidize costs of providing utility service inside the city. The
8-38 utility shall not pay to or deposit in the general revenue fund
8-39 revenues received from the rates charged to retail customers
8-40 outside the city except as required by any existing bond covenant
8-41 or by any future bond covenant unless the new bonds which are
8-42 issued are used to fund utility services to ratepayers outside the
8-43 corporate boundaries of the city.
8-44 (c) Ratepayers of the regional utility residing outside the
8-45 boundaries of the city shall have all rights provided in Chapter
8-46 13, Water Code, as applicable.
8-47 SECTION 8. PROVISION OF UTILITY SERVICE. (a) As a
8-48 condition of providing utility service, the regional utility may
8-49 require that all development in the county meet the minimum
8-50 construction and development standards established by the Texas
8-51 Water Development Board for economically distressed areas in
8-52 accordance with Section 16.343, Water Code, as adopted by the
8-53 county, and comply with the Rules and Regulation Number 11 of the
8-54 PSB concerning extension of utility services outside of the city
8-55 limits to the extent that they do not conflict with any provisions
8-56 of this Act and the plans developed pursuant to Subsection (b) of
8-57 Section 3 of this Act.
8-58 (b) On consolidation of a district into the regional
8-59 utility, the regional utility shall be required to provide utility
8-60 service to those residents of the district pursuant to the
8-61 provisions of the regional water supply and wastewater facilities
8-62 plan developed pursuant to Subsection (b) of Section 3 of this Act.
8-63 Notwithstanding any other provision in this Act, any water supply
8-64 or wastewater facilities being constructed or designed on the
8-65 effective date of this Act through grants from the Texas Water
8-66 Development Board or Farmers Home Administration shall be continued
8-67 by the regional utility uninterrupted by any delay and be
8-68 incorporated into the regional water supply and wastewater
8-69 facilities plan developed pursuant to Subsection (b) of Section 3
8-70 of this Act.
9-1 (c) In order to plan for regional utility service within the
9-2 county, the regional utility shall include land which belongs to
9-3 the permanent school fund of the state within a regional plan. In
9-4 such event, the provisions of a regional plan shall be binding on
9-5 permanent school fund land only after the regional utility provides
9-6 acceptable utility service commitments to the affected land and
9-7 obtains the written consent of the School Land Board in accordance
9-8 with its rules and regulations.
9-9 SECTION 9. SEVERABILITY AND CONSTRUCTION. (a) If any
9-10 provisions of this Act or the application thereof to any person or
9-11 circumstance is held invalid, such invalidity shall not affect
9-12 other provisions or applications of this Act that can be given
9-13 effect without the invalid provision or application, and to this
9-14 end the provisions of this Act are declared to be severable. All
9-15 the terms and provisions of this Act are declared severable. All
9-16 the terms and provisions of this Act are to be liberally construed
9-17 to effectuate the purposes, powers, rights, functions, and
9-18 authorities herein set forth.
9-19 (b) Nothing contained in this Act shall be construed to
9-20 limit the power of the governing body of the city to control the
9-21 governing body of the city's water and wastewater utility systems
9-22 as provided for in Articles 1111 and 1115, Revised Statutes.
9-23 (c) Nothing contained in this Act shall be construed to
9-24 require the city or the governing body of the city's water and
9-25 wastewater utility systems to provide services other than the water
9-26 and wastewater services described herein.
9-27 SECTION 10. The importance of this legislation and the
9-28 crowded condition of the calendars in both houses create an
9-29 emergency and an imperative public necessity that the
9-30 constitutional rule requiring bills to be read on three several
9-31 days in each house be suspended, and this rule is hereby suspended,
9-32 and that this Act take effect and be in force from and after its
9-33 passage, and it is so enacted.
9-34 * * * * *
9-35 Austin,
9-36 Texas
9-37 April 29, 1993
9-38 Hon. Bob Bullock
9-39 President of the Senate
9-40 Sir:
9-41 We, your Committee on Intergovernmental Relations to which was
9-42 referred S.B. No. 1374, have had the same under consideration, and
9-43 I am instructed to report it back to the Senate with the
9-44 recommendation that it do pass and be printed.
9-45 Armbrister,
9-46 Chairman
9-47 * * * * *
9-48 WITNESSES
9-49 FOR AGAINST ON
9-50 ___________________________________________________________________
9-51 Name: Jose R. Kennard x
9-52 Representing: El Paso Hispanic Chamber
9-53 City: El Paso
9-54 -------------------------------------------------------------------
9-55 Name: Ramiro Guzman x
9-56 Representing: El Paso Chamber of Commerce
9-57 City: El Paso
9-58 -------------------------------------------------------------------
9-59 Name: Teodora Trujillo x
9-60 Representing: EPISO
9-61 City: El Paso
9-62 -------------------------------------------------------------------
9-63 Name: Bob Cook x
9-64 Representing: Greater EP Chamber of Commer
9-65 City: El Paso
9-66 -------------------------------------------------------------------
9-67 Name: Aureline Bautista x
9-68 Representing: EPISO
9-69 City: San Elizario
9-70 -------------------------------------------------------------------
10-1 Name: Jay Caponigro x
10-2 Representing: EPISO
10-3 City: El Paso
10-4 -------------------------------------------------------------------
10-5 Name: John O. Ensor x
10-6 Representing: Residents
10-7 City: Horizon City
10-8 -------------------------------------------------------------------
10-9 Name: Edwardo Vallezo x
10-10 Representing: EPCLBVWDA
10-11 City: Clint
10-12 -------------------------------------------------------------------
10-13 FOR AGAINST ON
10-14 ___________________________________________________________________
10-15 Name: Manny Macias x
10-16 Representing: EPCLVWDA
10-17 City: El Paso
10-18 -------------------------------------------------------------------
10-19 Name: Darcy Alan Frownfelter x
10-20 Representing: El Paso Co. Lower Vall Wt Dis
10-21 City: El Paso
10-22 -------------------------------------------------------------------