BILL ANALYSIS



H.B. 1187
By: Pickett
3-13-95
Committee Report (Amended)


BACKGROUND
Westway is an unincorporated community located just west of El
Paso, Texas.  Water and wastewater projects were coordinated by the
El Paso County Water Control and Improvement District - Westway (
the Westway district).  In 1992, the Westway district's only well
failed which created an emergency situation for the citizens of
that community.  Seeking an affordable solution, the Westway
district, the City of El Paso (El Paso), and the El Paso Water
Utilities Public Service Board (PSB) entered into a water supply
contract under which the PSB constructed a well and transmission
line to provide the Westway district with a permanent water supply. 
One of the conditions of that contract required the parties to
negotiate another contract allowing the PSB to completely manage
and operate the Westway water and wastewater system (Westway
system) and to eventually transfer the Westway system into the El
Paso system.  

In May, 1994, all parties entered into a management and transfer
agreement to accomplish the transfer subject to three conditions
being met.  Those three conditions were the renewal of the Westway
district's wastewater permit by the Texas Natural Resource
Conservation Commission (TNRCC), the construction of all necessary
improvements financed by the Texas Water Development Board (TWDB)
to the Westway system to bring it into full compliance with all
applicable laws, and the passage of this legislation to allow for
the dissolution and transfer of the Westway system into the El Paso
system.  This would allow El Paso, through its PSB, to charge rates
for water and sewer service in the Westway district service area,
which exceed similar rates to its municipal customers, so that El
Paso could fully recover the costs of serving Westway customers. 
These costs would include the costs of repaying the debt incurred
by El Paso on behalf of the Westway district for the necessary
improvements to the Westway system.


PURPOSE
To allow for the dissolution and transfer of the Westway system
into the El Paso system, and permit El Paso, through its PSB, to
charge rates for water and sewer service in the Westway district
service area which exceed similar rates charged to its municipal
customers, but would still result in a savings to the Westway
customers over the rates they currently must pay from the Westway
system.

RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

     SECTION 1.     (a) Grants authority to the Westway district to
transfer, through its board of directors, district assets and
liabilities to the City of El Paso in accordance with the
management and transfer agreement executed between the parties
involved on May 16, 1994.

     (b) Provides for notifying the TNRCC and requesting an order
of dissolution once the conditions of the management and transfer
agreement have been met.

     (c) Provides that the Executive Director of the TNRCC will
monitor the Westway district's progress in meeting the conditions
of the management and transfer agreement.

     SECTION 2. (a) Directs the Executive Director of the TNRCC to
investigate to determine if all parties to the management and
transfer agreement have met all of the conditions required therein
to be met before the transfer.

     (b) Directs the Executive Director of the TNRCC to issue a
dissolution order if the Executive Director determines:

           (1) the Westway district is ready to be dissolved in
accordance with the management and transfer agreement;

           (2) all of the Westway district's assets and liabilities
are ready for transfer;

           (3) the City of El Paso and the PSB are prepared to
accept the transfer; and

           (4) the El Paso City Council has adopted a resolution
accepting the transfer. 

     (c) Sets out the actions of the Executive Director of the
TNRCC in issuing an order of dissolution regarding the transferring
of documents from the Westway district's control to El Paso, the
PSB, and the secretary of state and after dissolution ordering all
assets and liabilities transferred to El Paso.

     (d) Provides that the consideration and adoption of an order
of dissolution under this section is not a contested case under
Chapter 2001, Government Code.

     (e) Provides that the order of dissolution will be wholly
sufficient and effective in accomplishing the dissolution and
transfer, regardless of any other provision of law.

     (f) Provides for filing certified copies of the dissolution
order and the resolution of the city council of El Paso accepting
the transfer.

     SECTION 3.
     Authorizes the City of El Paso to collect all money owed to
the Westway district after the dissolution order is issued.

     SECTION 4. (a) Allows the City of El Paso to charge residents
of the Westway service area higher rates for service than those
charged to residents of the municipality if the higher rates are
necessary or appropriate to fully cover the cost of service to the
area.

     (b) Stipulates what recovery costs the PSB may include in the
rates charged to residents of the Westway system after dissolution.

     SECTION 5.
     Provides for ratification, adoption, validation, and
confirmation of decisions and actions reached by the board of
directors of the Westway district in the past and provides
exceptions for actions which were knowingly illegal or held invalid
by a final judgement.

     SECTION 6.  Emergency clause.
     

EXPLANATION OF AMENDMENTS
Committee Amendment No. 1:  Adds the words "may be" before the word "as" at both page 1, line
17 and page 2, line 11;  after the word "area" on page 4, line 26, deletes the word "or" and adds the
word "and".

SUMMARY OF COMMITTEE ACTION
H.B.1187 was considered by the committee in a public hearing on March 13, 1995.

The following persons testified in favor of the bill: 
     Mr. Jack Vowell, representing El Paso Chamber of Commerce;
     Mr. Jesus Luna, representing El Paso Interreligous Sponsoring Organization;
     Mr. Herbert L. Prouty, General Counsel, El Paso Water Utilities, Public Service Board,
representing himself;
     Mr. Ernesto Chavez, representing El Paso Water Control and Improvement District -
Westway.

The following persons testified against the bill: None (0).

The following persons testified on the bill: 
     Mr. Tom Brown, representing the Texas Water Development Board.

The committee considered one (1) amendment to the bill.  The amendment was adopted without
objection.  The bill was reported favorably, as amended, with the recommendation that it do pass and
be printed and be sent to the Committee on Local and Consent Calendars, by a record vote of 7 ayes,
0 nays, 0 pnv, 2 absent.