Title
Approving an ordinance on second reading with the caption reading: AN ORDINANCE OF THE CITY OF PFLUGERVILLE, TEXAS, AMENDING RATES, CHARGES AND FEES FOR WATER, WASTEWATER AND SOLID WASTE UTILITY SERVICE AND PROVIDING AN EFFECTIVE DATE.
Summary
Staff is recommending three changes to the existing utility ordinance.
1. Adding a $1,200 deposit for the temporary use of construction/fire hydrant meters to the ordinance. There are no requirements in the current ordinance to require a deposit prior to the loan of one of the City's fire hydrant meters, but we have been charging a $500.00 deposit which is returned to the customer upon return of the fire hydrant meter. Contractors request the fire hydrant meters for use during construction projects. Currently, the cost to replace a fire hydrant meter is slightly less than $1,200. Most cities in this area, including Round Rock and Georgetown, require a $1,200 deposit.
2. Removing the specified water and wastewater rates for Northtown Municipal Utility District as the City no longer services this district. This was a temporary arrangement until the City of Austin was able to serve that area.
3. Waiving utility deposits for new customers who enroll in the automatic draft program for a minimum of one full year. The utility deposit for water is $125.00. A $25.00 connection fee will be charged to them. The $25.00 fee is revenue to the City. Other cities have had success with this procedure. It eliminates staff having to collect, maintain and return the water deposit, while assuring timely payment. This waiver allows the staff to make use of technology that allows increased efficiency.
The City Attorney has reviewed the ordinance.
Prior City Council Action
This ordinance was approved by the City Council on first reading on September 28, 2010.
Deadline for City Council Action
There is no deadline for action.
Fiscal Impact
Staff estimates that 70% of new utility customers will accept the option of waiving the deposit by using automatic draft to pay their bill. Automatic draft is a very efficient way for the City to receive utility revenue. The City will receive the revenue of $25.00 from each new account as the connection fee. Staff estimates thirty new water customers each month, resulting in $750 in new revenue each month.
Staff Recommendation
Approve the ordinance on second reading. The City Attorney has reviewed the ordinance.
Drafter
Lauri Gillam, Assistant City Manager