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04-14-2009 (City Council) Agenda Packet Wylie City Council CITY:F WYLIE NOTICE OF MEETING Regular Meeting Agenda April 14, 2009 — 7:00 pm Wylie Municipal Complex — Council Chambers 2000 Highway 78 North Eric Hogue Mayor M. G. "Red" Byboth Mayor Pro Tem David Goss Place 1 Kathy Spillyards Place 3 Merrill Young Place 4 Rick White Place 5 Carter Porter Place 6 Mindy Manson City Manager Richard Abernathy City Attorney Carole Ehrlich City Secretary In accordance with Section 551.042 of the Texas Government Code, this agenda has been posted at the Wylie Municipal Complex, distributed to the appropriate news media, and posted on the City website: www.wi lietexas.szov within the required time frame. As a courtesy, the entire Agenda Packet has also been posted on the City of Wylie website: www.wylietexus.gov. The Mayor and City Council request that all cell phones and pagers be turned off or set to vibrate. Members of the audience are requested to step outside the Council Chambers to respond to a page or to conduct a phone conversation. The Wylie Municipal Complex is wheelchair accessible. Sign interpretation or other special assistance for disabled attendees must be requested 48 hours in advance by contacting the City Secretary's Office at 972.442.8100 or TD 972.442.8170. CALL TO ORDER Announce the presence of a Quorum. INVOCATION & PLEDGE OF ALLEGIANCE CITIZENS COMMENTS ON NON-AGENDA ITEMS Residents may address Council regarding an item that is not listed on the Agenda. Residents must provide their name and address. Council requests that comments be limited to three (3) minutes. In addition, Council is not allowed to converse, deliberate or take action on any matter presented during citizen participation. April 14, 2009 Wylie City Council Regular Meeting Agenda Page 2 of 3 CONSENT AGENDA All matters listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by one motion. There will not be separate discussion of these items. If discussion is desired, that item will be removed from the Consent Agenda and will be considered separately. A. Consider, and act upon, approval of the Minutes from the March 24, 2009 Regular Meeting and the March 31, 2009 Special Called Meeting of the City Council. (C. Ehrlich, City Secretary) B. Consider, and act upon, approval of an amendment to the Engineering Services Agreement with Halff Associates, Inc., in the amount of $32,000, for the Founders Park Improvements for additional design related to an expanded scope of services. (Al. Sferra, Public Services Director) REGULAR AGENDA General Business 1. Consider, and act upon, Ordinance No. 2009-11 adopting the North Texas Municipal Water District Model Water Conservation Plan, as modified for the City of Wylie, as the Water Conservation Plan for the City of Wylie, Texas. (M. Sferra, Public Services Director) Executive Summary Although the City of Wylie previously adopted a Drought Contingency Plan in 2006, no formal action has been taken to adopt a Water Conservation Plan. Title 30 Texas Administrative Code, Chapter 288 requires water systems to submit a Water Conservation Plan to the Texas Water Development Board by May 1, 2009. After the drought conditions which occurred in 2006, representatives of the member cities met with North Texas Municipal Water District (NTMWD) to develop a Model Water Conservation Plan that member cities could adopt, with minor modifications to fit individual needs, to establish uniformity among member cities. 2. Consider, and act upon, appointment of a member to the North Texas Municipal Water District (NTMWD) Board to fill an expired term of June 1, 2009 to May 31, 2011. (C. Ehrlich, City Secretary) Executive Summary The Board of Directors of North Texas Municipal Water District is a policy making body similar in nature to the City Council. The Board is responsible to both the State of Texas and to the member cities for assuring that NTMWD operations occur in accordance with state and federal law, in alignment with NTMWD policy, and in the best interests of the cities receiving services. The City of Wylie has two board members on the NTMWD Board; Mr. Robert Thurmond Jr. and Mr. Marvin Fuller. Mr. Thurmond, whose term will expire May 31, 2009, has confirmed that he would be willing to serve another term. 3. Consider, and act upon, approval of Amendment No. 1 to the Professional Engineering Services Agreement, in an amount not to exceed $57,000, with Birkhoff, Hendricks & Conway, L.L.P. for the design of the expansion of Brown Street from FM 1378 to Ballard Avenue. (C. Holsted, City Engineer) April 14,2009 Wylie City Council Regular Meeting Agenda Page 3 of 3 Executive Summary The 2005 City of Wylie Bond Program identified $9,000,000 for the design and construction of approximately 9,500 linear feet of 4-lane concrete pavement section with sidewalks on Brown Street from FM 1378 to Ballard Avenue. $4,453,750 was also included in the recent Collin County Bond Program for the project and those funds are scheduled to be available in FY 2010. Total funds available for the project are $13,453,750. The first bond issue included $1,220,000 for engineering and right of way acquisition for this project. Engineering services for the project include the design of a 4-lane paving section, storm sewer, sidewalks, utility relocations, erosion control,traffic control, and right of way documents. 4. Consider, and act upon, Resolution No. 2009-11(R) denying CoSery Gas Ltd.'s requested rate changes; authorizing intervention in any necessary proceedings affecting city's interests before administrative or judicial bodies; requiring reimbursement of reasonable legal and consultant expenses; finding that the meeting at which this resolution is adopted is open to the public as required by law; and requiring delivery of this resolution to the company and legal counsel. (M. Manson, City Manager) Executive Summary On or about December 18, 2008, CoSery Gas Ltd. ("CoServ" or "Company") filed its "Statement of Intent to Increase Rates" seeking to increase system wide rates by $2.9 million which represents an overall total revenue increase of approximately five percent (5%). In addition to the rate increase, CoSery also seeks approval of a new rate design that provides for a flat fee per month based on a customer's prior 12 months of historical usages. This resolution denies the Company's requested rate increase and it also requires that the Company's current rates be maintained for all customers within the City. WORK SESSION • Discussion regarding the City of Wylie 2008-2009 Comprehensive Fee Schedules. RECONVENE INTO REGULAR SESSION Take any action as a result,from Work Session. READING OF ORDINANCE Title and caption approved by Council as required by Wylie City Charter, Article Ill, Section 13-D. ADJOURNMENT CERTIFICATION 1 certify that this Notice of Meeting was posted on this 9th day of April, 2009 at 5:00 p.m. as required by law in accordance with Section 551.042 of the Texas Government Code and that the appropriate news media was contacted. As a courtesy, this agenda is also posted on the City of-Wylie website: wwu',u'vlietexas.0-or. Carole Ehrlich,City Secretary Date Notice Removed E Wylie CCity CITY OF WYLIE Minutes Wylie city Council Tuesday, March 24, 2009 7:00 pm Wylie Municipal Complex — Council Chambers 2000 Highway 78 North CALL TO ORDER Announce the presence of a Quorum.. Mayor Eric Hogue called the meeting to order at 7:00 p.m. with the following City Council members present: Mayor Pro Tern Red Byboth, Councilwoman Kathy Spillyards, Councilman David Goss, Councilman Rick White, Councilman Carter Porter, and Councilman Merrill Young. Staff present were: City Manager, Mindy Manson; Assistant City Manager, Jeff Butters; Planning Director, Renae' 011ie; City Engineer, Chris Hoisted; Fire Chief, Randy Corbin; Police Chief, John Duscio; Interim Finance Director, Melissa Beard; WEDC Executive Director, Sam Satterwhite; Human Resources Manager, Lynn Fagerstrom; Public Information Officer, Craig Kelly; City Secretary, Carole Ehrlich, and various support staff. INVOCATION & PLEDGE OF ALLEGIANCE Rob Rigby, Scout Leader for Troop 2062 gave the invocation and Boy Scout Troop 418 and Troop 2062 led the Pledge of Allegiance. Troop members present were: Troop 2062 — Alex Baker, Robert Thatcher, Ryan Rigby, Lehi Palencia, Hansel Palencia, Sam Rainey, and Noah Whitworth. Leaders for Troop 2062 included Rob Rigby, John Rainey, Rex Jarvis, and Jason Baker. Troop 418 members present were: Hayden Rhodes, Alex Cavazos, Wesley Elliott, Zachary Perdue, Christopher Perdue, Jacob Kotria, Elliott Ford, Christian Ramirez, Nicholas Montemayor, and Malik Chambers. Troop 418 leaders present included: Eliazar Cavazos and Buddy Perdue. PRESENTATION • Proclamation for"Student Government Day 2009" Mayor Hogue explained Student Government Day to those present. He stated that in conjunction with WISD, the City staff and Council held a "Student Government Day." The Minutes—March 24, 2009 Wylie City Council Page I students participating are enrolled in WISD AP Government. On March 25, 2009, those same students hold their own "Mock Council Meeting" with the assistance of AP class students, City staff and City Council. Students participating in the council meeting included: Mayor, Jessica Dixon; City Manager, Noelle Defoe; City Council members: Ryan Johnson, Place 1; David Pollard, Place 2; Amanda Woodard, Place 3; Laura Jackson, Place 4; Joseph McManus, Place 5, and Ricky Storer, Place 6. Mayor Hogue read the proclamation declaring March 25, 2009 as "Student Government Day" in the City of Wylie. • Recognition of employees celebrating 20 years of service to the City of Wylie (L. Fagerstrom, Human Resources Manager) Mayor Hogue, the City Council and City Manager Mindy Manson presented plaques commemorating 20 years of service to the City of Wylie to the following employees: Lt. Mike Atkison, Police Department Mayor Hogue explained that Lt. Atkison joined the City of Wylie on March 5, 1989 as a Patrol Officer. He was promoted to Patrol Sergeant on September 25, 1994 and later promoted to Administrative Lieutenant on July 10, 2007. Police Chief Duscio stated that Lt. Atkison helped build the department over the years and was an extremely dedicated employee and police officer. Captain Jeff Scribner, Fire Department Mayor Hogue explained that Capt. Scribner joined the City of Wylie on March 20, 1989 as a Street Maintenance Worker. He was promoted to Warehouseman on November 6, 1989. On January 20, 1992 he was promoted to Firefighter and on October 6, 1997 he was promoted to Fire Captain. Fire Chief Randy Corbin stated that Captain Scribner was a key player in not only the legacy that has developed the culture of courage that is the Wylie Fire Department but has worked hard to keep it that way. He stated that the turnout tonight of firemen to this presentation speaks to the honor of this recipient. CITIZENS COMMENTS ON NON-AGENDA ITEMS Residents may address Council regarding an item that is not listed on the Agenda. Residents must provide their name and address. Council requests that comments be limited to three (3) minutes. In addition, Council is not allowed to converse, deliberate or take action on any matter presented during citizen participation. There were no citizens present wishing to address the Wylie City Council during Citizens Comments. CONSENT AGENDA All matters listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by one motion. There will not be separate discussion of these items. If discussion is desired, that item will be removed from the Consent Agenda and will be considered separately. Minutes— March 24, 2009 Wylie City Council Page 2 A. Consider, and act upon, approval of the Minutes from the March 10, 2009 Regular Meeting of the City Council. (C. Ehrlich, City Secretary) B. Consider, and act upon, a Replat for Premier Industrial Park North, Block A, Lots 3A-1 and 3A-2, creating two commercial lots generally located on the northwest corner of Sanden Road and Hensley Lane. (R. 011ie, Planning Director) C. Consider, and act upon, Resolution No. 2009-10(R) authorizing the Mayor to enter into an Interlocal Agreement between the City of Wylie, Texas, the City of Bedford, Texas and other municipal signatories of a cooperative purchasing program. (R Corbin, Fire Chief D. Consider, and place on file, the City of Wylie Monthly Revenue and Expenditure Reports as of February 28, 2009. (M. Beard, Interim Finance Director) E. Consider, and place on file, the Monthly Revenue and Expense Report for the Wylie Economic Development Corporation as of February 28, 2009. (S. Satterwhite, Executive Director, WEDC) Council Action A motion was made by Councilman Porter, seconded by Councilman White to approve the Consent Agenda as presented. A vote was taken and the motion passed 7-0. REGULAR AGENDA Public Hearing 1. Hold a Public Hearing and consider, and act upon, approval of the withdrawal of a Residential Replat for Stone Circle Townhomes, Block A, Lots 1-6 creating 6 single family attached lots, generally located north of Stone Circle and 120 feet east of Birmingham Street. (R. 011ie, Planning Director) Staff Comments Planning Director 011ie addressed Council stating that the applicant has requested to withdraw this replat for consideration at this time due to unforeseen circumstances. This residential replat is a public hearing item and required notices have been adhered to accordingly with State Law. However, due to posting and advertisement requirement; action on the replat by the Council must be taken. She reported that the Planning Commission approved 4-0 to accept the applicant's request to withdraw the replat. Public Hearing Mayor Hogue opened the public hearing on Item #1 at 7:36 p.m. asking anyone present wishing to address Council to come forward the keep their comments to three minutes. No one was present to address Council during the public hearing. Mayor Hogue closed the public hearing at 7:36 p.m. Minutes—March 24, 2009 Wylie City Council Page 3 Council Action A motion was made by Mayor Pro Tem Byboth, seconded by Councilman White to accept the withdrawal by the applicant for a residential replat for Stone Circle Townhomes, Block A, Lots 1- 6 creating 6 single family attached lots, generally located north of Stone Circle and 120 feet east of Birmingham Street. A vote was taken and the motion passed 7-0. General Business 2. Consider, and act upon, an amendment to the Service Contract between the City of Wylie and National Sign Plazas, Inc. to allow kiosk panels to be increased to 15" in height in lieu of 12" as required by the contract. (R. 011ie, Planning Director) Staff Comments Planning Director 011ie addressed Council stating that the City of Wylie entered into a service contract with National Sign Plazas to provide kiosk plazas within rights-of-way in accordance with Sign Ordinance No. 2008-33 adopted July 22, 2008. Several kiosk plazas are currently placed throughout the city in accordance with the approved plaza location map. The current panels are installed at a height of 10.5 inches that allowed a font size of 8 inches. This request is seeking approval for a 15 inch panel that would permit a font size of 13 inches. Ms. 011ie explained that this revision would allow better visibility and readability of the panels. She reported that since the ordinance did not address the size of the panels, an addendum to the original contract between National Sign Plazas and the City was the only required action. Planning Director 011ie stated that empty panels could be used for additional city information until such time as those panels were sold for advertisement. She requested that Council include in the action whether they wished the panels to be white with blue lettering or blue with white lettering and where the municipal panels should be located within each kiosk sign. National Sign Plazas/Staff/Council Discussion Councilwoman Spillyards asked why it had taken so long for information to be place on the kiosk plazas. Planning Director 011ie explained that part of the delay was due to organizing the locations and panels corresponding to the correct developments within each location. She explained that in addition they found that the current size of the panel made it hard to read the font, due to the size, and desired to bring this back to Council to enlarge the size of the panels. She stated that if this addendum was approved tonight, the signs would be completed in a very short timeframe. She reported that several vendors were waiting to see if the larger panels were approved prior to signing on to the contract. Councilwoman Spillyards suggested that until the panels were completely sold, it would be good to alternate between used panels and blank panels. Joseph Green, representing National Sign Plaza, addressed Council stating that he wanted to insure that the City of Wylie, City of Murphy and the City of Sachse were uniform due to their proximity to each other. He explained that he wanted to insure that all panels were readable. He reported that the City of Sachse had approved the 15 inch panels. He reported that if the enlarged panels were approved tonight, they would be implemented quickly. Councilwoman Spillyards asked how many panels would be lost going to the 15 inch panel size. Mr. Green explained that extending the kiosk sign height to 10 feet would allow the same number of panels, if needed. Minutes— March 24, 2009 Wylie City Council Page 4 Council Action A motion was made by Councilwoman Spillyards, seconded by Councilman White to approve the addendum to the Service Contract between the City of Wylie and National Sign Plazas, Inc. to allow kiosk panels to be increased to 15" in height in lieu of 12" and to approve the use of municipal directional signs at the top of each kiosk sign and to allow for the panels to be blue with white lettering. A vote was taken and the motion passed 7-0. 3. Consider, and act upon, authorizing the Wylie Economic Development Corporation to purchase approximately 0.397 acre from Crossroads Management IV, Ltd. for approximately $146,880 with the subject property located near the southeast corner of F.M. 544 and Regency Drive. (S. Satterwhite, Executive Director, WEDC) Staff Comments WEDC Executive Director Satterwhite addressed Council stating that on March 17, 2009, the WEDC entered into a contract with Crossroads Management to purchase ±0.397 acre out of a 1 acre tract owned by Crossroads. The subject property is adjacent and south of WEDC owned property fronting F.M. 544 between Regency Drive and Hooper Road. The remainder of the tract is to be retained by Crossroads and has existing self-storage units. The area to be purchased by the WEDC is occupied by an automobile body shop/garage. Mr. Satterwhite reported that of particular interest to the WEDC is a 20' easement traversing the WEDC property which is utilized by the Francis tract to access the body shop. Prior to closing, a plat will be submitted to the City of Wylie abandoning the easement. Access to the property being retained by Crossroads will be through an adjacent property to the east which is also owned by Crossroads. The WEDC Board of Directors unanimously approved the execution of the attached contract on 3-9-09. He reported that the closing is to take place no later than June 15, 2009. Council Action A motion was made by Councilwoman Spillyards, seconded by Councilman Young to authorize the Wylie Economic Development Corporation to purchase approximately 0.397 acre from Crossroads Management IV, Ltd. For approximately $146,880 with the subject property located near the southeast corner of F.M. 544 and Regency Drive. A vote was taken and the motion passed 6-0-1 with Mayor Hogue, Councilwoman Spillyards, Councilman Goss, Councilman Young, and Councilman Porter voting for with none against and Mayor Pro Tem Byboth abstaining. Mayor Hogue asked Rachel Durky representing the Quad C and WISD Concurrent Government Class of 2009 to introduce the students in attendance and explain the program. Rachel Durky explained that this process allowed students from Wylie High School enrolled in concurrent courses both for high school credit and college credit the opportunity to attend and learn about the City Council during a regular meeting to have first hand experience regarding how a municipality is governed. Ms. Durky asked each student to come forward and introduce themselves. Mayor Hogue thanked the student for attending. Minutes—March 24, 2009 Wylie City Council Page 5 ADJOURNMENT With no further business before the Wylie City Council, a motion was made by Councilman VVhite, seconded by Councilman Porter to adjourn the meeting at 8:10 p.m. Consensus of City Council was to adjourn. Eric Hogue, Mayor ATTEST: Carole Ehrlich, City Secretary Minutes— March 24. 2OOS Wylie City Council Wylie City Y., CITY OF WYLIE ... Minutes Special Called Meeting Agenda Wylie City Council & Wylie Independent School District Joint Work Session March 31, 2009 -- 6:00 p.m. and 7:00 p.m. Wylie Municipal Complex Council Chambers 2000 Highway 78 North 6:00 P.M. - SPECIAL CALLED MEETING - WYLIE CITY COUNCIL CALL TO ORDER Tinnounce the presence of a Quorum. Mayor Hogue called the Wylie City Council Meeting to order at 6:00 p.m. The following Council members were present: Councilwoman Kathy Spillyards, Councilman Goss, Councilman Young, Councilman White, and Councilman Porter. Mayor Pro Tem Red Byboth was absent. Staff present included: City Manager, Mindy Manson; Assistant City Manager Jeff Butters; Police Chief, John Duscio; Fire Chief, Randy Corbin; City Engineer, Chris Hoisted; Public Services Director, Mike Sferra; Planning Director, Renae' 011ie; Interim Finance Director, Melissa Beard; Public Information Officer, Craig Kelly, and City Secretary, Carole Ehrlich. INVOCATION & PLEDGE OF ALLEGIANCE Councilman Young gave the invocation and Councilman Porter led the Pledge of Allegiance. CITIZENS COMMENTS ON NON-AGENDA ITEMS Residents may address Council regarding an item that is not listed on the Agenda. Residents must provide their name and address. Council requests that comments be limited to three (3) minutes. In addition, Council is not allowed to converse, deliberate or take action on any matter presented during citizen participation. There were no citizens present wishing to address Council during Citizens Comments. Minutes March 31, 2009 Special Called Meeting Wylie City Council Page REGULAR AGENDA 1. Consider, and act upon, Ordinance No. 2009-10 authorizing the annexation of a 7 acre tract of land situated in the Allen Atterberry Survey, Abstract No. 23, Collin County, Texas generally located south of Martin Drive and east of South Ballard Avenue. (R. 011ie, Planning Director) Staff Comments Planning Director 011ie addressed Council stating that this annexation is at the request of the property owners, James Stephen Gee and Stacy Lynn Gee. The property is located south of Martin Drive and east of South Ballard Ave within the Extraterritorial Jurisdiction (ETJ) of Wylie. Ms. 011ie reported that pursuant to state regulations, two public hearings had been held on March 10, 2009 and March 24, 2009 to allow citizens a chance to be heard on this item. Proposed tonight is Ordinance No. 2009-10 authorizing the annexation. Council Action A motion was made by Councilman Young, seconded by Councilman White to approve Ordinance No. 2009-10 authorizing the annexation of a 7 acre tract of land situated in the Allen Atterberry Survey, Abstract No. 23, Collin county, Texas generally located south of Martin drive and east for South Ballard Avenue. A vote was taken and the motion passed 6-0 with Mayor Pro Tern Byboth absent. Mayor Hogue convened into Executive Session quoting Section 551.071 and description below at 6:23 p.m. EXECUTIVE SESSION Recess into Closed Session in compliance with Section 551.001, et.seq. Texas Government Code, to wit: Section 551.071: Meeting with City Attorney regarding a matter(s) in which the duty of the City Attorney under the Texas Disciplinary rules of Professional Conduct of the State Bar of Texas conflicts with the Open Meetings Act regarding: • Legal advice concerning Award of Special Commissioners in the condemnation proceeding No. 002-03096-2008 and styled City of Wylie, Texas vs. Alpay Living Trust of October 18, 1996. Mayor Hogue reconvened into Regular Session at 6:59 p.m. RECONVENE INTO REGULAR SESSION Take any action as a result from Executive Session. Mayor Hogue announced that no action will be taken as a result of Executive Session. 7:00 P.M. - RECONVENE INTO JOINT WORK SESSION CALL TO ORDER Minutes— March 31, 2009 Special Called Meeting Wylie City Council Page 2 JOINT WORK SESSION WITH WYLIE INDEPENDENT SCHOOL DISTRICT Mayor Hogue convened into the Joint WISD and Wylie City Council Work Session at 7:10 p.m. The following Council members were present: Councilwoman Spillyards, Councilman Goss, Councilman Young, Councilman White, and Councilman Porter. Mayor Pro Tem Byboth was absent. WISD Board President Susan Shuler called the Wylie Independent School District Board of Trustees to order at 7:10 p.m. Trustees present were: Lance Goff, Stacie Gooch, Ralph James, and Sam Satterwhite. Ronni Fetzer arrived at 7:20 p.m. Sue Nicklas was absent. WORK SESSION • Discussion regarding the status of city projects. City Engineer, Chris Hoisted reviewed various city projects that were underway and the timelines the projects were scheduled for completion. They included: McCreary Road/Springwell Parkway, FM 1378, Ballard Street (Stone Rd. to Alanis Dr.), Ballard Street (Alanis Dr. to the County Line), and Brown Street East and West. Mr. Hoisted also reported that the Quiet Zones have been applied for through the Federal Railroad Administration. • Discussion of Wylie ISD projects and Tax Rate Information. WISD Assistant Superintendant over Finance, Brian Miller reviewed cost projections for new building needs, based on additional student enrollment over the next few years and how these costs relate to the WISD tax rate. He also reviewed the history of WISD tax rates for both Maintenance/Operations and Interest/Sinking Funds and their cost relationship to other surrounding school districts, which showed WISD's tax rate at a medium average of tax rates in the local area. Mr. Miller reported that with good stewardship of tax dollars and bond funding, the school district has remained in the medium average over the last few years. • Wylie ISD 2009 Bond Election and Contingency Plans. WISD Superintendent Dr. Fuller spoke about the need for the $84,500,000 Bond Proposition. He also explained contingency plans in the event the May 9th Bond Election did not pass. • Wylie ISD Human Resource Update. Assistant Superintendent over Human Resources, Dr. Cole McClendon reviewed the current personnel working for the school district. Dr McClendon reported on the future need for teachers and support staff based on the estimate of students expected to join the school district in the coming years. He reported a total of 1,612 employees staffed for FY 08-09 with that number increasing by 32 teaching positions by FY 09-10. Dr. McClendon reported that the assistance of the 5 Wylie Resource Officers headed by Donna Valdepena was providing excellent service to the district. • Wylie ISD Accountability Report. Assistant Superintendent for Curriculum and Instruction, Dr. T.J. Farler presented Accountability Data which included Gold Performance Acknowledgements; she reported that TAKS tests in Minutes— March 31, 2009 Special Called Meeting Wylie City Council Page 3 science and math had shown improvements per student group. TAKS test results showed Exemplary level for all student groups in reading and writing and Recognized levels for all student groups in Social Studies. She explained some of the challenges in keeping Exemplary/Recognized levels of performance and at the same time, teaching every student the required course work. • Discussion of the City of Wylie Neighborhood Planning Initiative. Planning Director 011ie gave a short report regarding the newly implemented A.C.T.I.O.N Plan. She explained that the ACTION Plan is a tool to afford each resident and stakeholder the opportunity to work together towards greatly improving the quality of life for all residents of Wylie. She reported that staff had successfully completed working in the JM Butler Addition where a concrete flume was installed to alleviate drainage problems. Staff is currently working with residents of the Bostic Addition to install or repair sidewalks. • Discussion of current and possible shared resource opportunities between city and school district. WISD Public Information Officer Susan Dacus reviewed the current WISD and City of Wylie Partnerships. They included: Resource Officers, Wylie Wave, Parking at Founder's Park for Pirate Stadium, School Government Day, STAR Students, City of Wylie-Partner in Education, Shared Fiber for Internet Access, Tennis Courts at Founders Park, Emergency Operations Center Representation, Joint Use of School and City Facilities, Joel Scott Memorial Park, Fire Protection Programs for Students, Purchasing Land for Wylie High School and Founders Park, and Crossing Guards. She thanked the City for their support in these endeavors. With no further business before the Wylie School Board of Trustees, Sharon Shuler adjourned the work session at 8:58 p.m. RECONVENE INTO REGULAR SESSION Take any action as a result from Work Session. Mayor Hogue recessed into Regular Session at 8:58 p.m. ADJOURNMENT With no further business before the Wylie City Council, a motion was made by Councilwoman Spillyards, seconded by Councilman White to adjourn the meeting at 9:00 p.m. Consensus of City Council was to adjourn. Eric Hogue, Mayor ATTEST: Carole Ehrlich, City Secretary Minutes—March 31, 2009 Special Called Meeting Wylie City Council Page 4 •iy0 Wylie 1Council 7 , , CITY OF WYLIE AGENDA REPORT Meeting Date: April 14, 2009 Item Number: I3 Department: Public Services (CitySecretary's � Only) Prepared By: Mike Sferra Account Code: 443-5443-56570 Date Prepared: March 19, 2009 Budgeted Amount: $ 32,000 Exhibits: Proposal Subject bject Consider, and act upon, approval of an amendment to the Engineering Services Agreement to Halff Associates, Inc., in the amount of $32,000, for the Founders Park Improvements for additional design related to an expanded scope of services Recommendation Motion to approve an amendment to the Engineering Services Agreement to Half Associates, Inc., in the amount of$32,000, for the Founders Park Improvements for additional design related to an expanded scope of services Discussion On December 12, 2006, the City Council approved an engineering contract with Half Associates, Inc. for the design of the Founders Park Improvements project, a $5.47 million dollar project approved by voters in 2005. In October 2008, the City was awarded a $400,000 grant from Collin County for additional improvements to Founders Park not included in the original scope of services in the engineering contract. These improvements include reconfiguration and additions to the walking trail, a pavilion with foundation for the playground area, the installation of shade structures for the ball field bleachers, sodding of the ball fields, and sodding of the north soccer fields. On March 10, 2009, City Council gave staff direction to also include a sand volleyball court, a basketball court, expand the center trail on the west side of the park from eight to ten feet in width, and include additional masonry features at the pavilion. All of the above-mentioned items will be included in the bid documents. This contract amendment covers the consultant fee related to the expanded scope of services. Approved By Initial Date Department Director MS 3/19109 City Manager Page 1 of 1 1201 North Bowser Road Richardson,Texas 75081 (214)346-6200 Fax(214)739-0095 ADDITIONAL SERVICES CONFIRMATION To: Mike Sferra Date: March 13, 2009 From: Lenny Hughes AVO: 24714 Email: Ihughes@halff.com Project: Founders Park VIA: Email Re: Request for Additional Services to perform Landscape Architectural and Engineering Design Services for Founders Park Project, Wylie, Texas. Half Associates Inc. is pleased to submit this fee proposal for$32,000.00 to assist in the continuance and development of appropriate planning and design level construction drawings and specifications for the proposed additions to Founders Park. Per our understanding of your requirements, Halff will develop a plans and specs showing the additional items to be awarded for the$400,000 Collin County Grant. Grant items included the following proposed site improvements: 1. Sodding for Baseball Fields; 2. Sodding for north Soccer Fields; 3. Playground Pavilion, walkway and foundation; 4. Shade structures for the Ball Fields; 5. +/- 1,760 If. 10' concrete outer trail; and 6. +/- 816 If. 10' concrete trail expansion. The plan shall also include Alternative Items for Sand Volleyball and Basketball Courts. Half Associates will utilize the City of Wylie standards and details for the construction of the alternates. HAI will provide a place holder on the plans and as money become available for the project, these items shall be constructed. Any additional services beyond the specified scope will be performed by modification. Please feel free to contact us if you have any questions or comments concerning the scope. By: (Print name) Title: Signature: Date: ❑ Attachments: SIGNED: ,ennL{ 'Hi ies COPIES: ® File ❑ Owner ❑ Contractor 0 Other: �" u.ti Wylie City C OF CITY � µ Meeting Date: April 14, 2009 Item Number: 1 (City►Sect-may's Use Only) Department: Public Services Prepared By: Mike Sferra Account Code: Date Prepared: March 19, 2009 Budgeted Amount: Exhibits: Ordinance, Plan Subject� .. Consider, and act upon, Ordinance No. 2009-11 adopting the North Texas Municipal Water District Model Water Conservation Plan, as modified for the City of Wylie, as the Water Conservation Plan for the City of Wylie, Texas. Recommendation Motion to approve Ordinance No. 2009-11 adopting the North Texas Municipal Water District Model Water Conservation Plan, as modified for the City of Wylie, as the Water Conservation Plan for the City of Wylie, Texas. Discussion Although the City of Wylie previously adopted a Drought Contingency Plan in 2006, no formal action has been taken to adopt a Water Conservation Plan. Title 30 Texas Administrative Code, Chapter 288 requires water systems to submit a Water Conservation Plan to the Texas Water Development Board by May 1, 2009. After the drought conditions which occurred in 2006, representatives of the member cities met with North Texas Municipal Water District (NTMWD) to develop a Model Water Conservation Plan that member cities could adopt, with minor modifications to fit individual needs, to establish uniformity among member cities. The requirements of the proposed Water Conservation Plan include the following landscape water management measures: ■ Time of day restrictions prohibiting lawn irrigation watering from 10 AM to 6 PM beginning April 1 and ending October 31 of each year. ■ Prohibition of watering of impervious surfaces. (Wind driven water drift will be taken into consideration.) ■ Prohibition of outdoor watering during precipitation or freeze events. ■ Lawn and landscape irrigation limited to twice per week. ■ Prohibition of the use of treated water to fill or refill residential, amenity, and any other natural or manmade ponds. A pond is considered to be a still body of water with a surface area of 500 square feet Page 1 of 2 Page 2 of 2 or more. ■ Rain and freeze sensors and/or ET or Smart controllers required on all new irrigation systems. Rain and freeze sensors and/or ET or Smart controllers must be maintained to function properly. ■ "At home" car washing can be done only when using a hose with a shut-off nozzle. • Prohibition of watering areas that have been overseeded with cool season grasses (such as rye grass or other similar grasses), except for golf course and public athletic fields. In addition, the City of Wylie adopts the following as part of the City Plan: • Recommend, not require, that all existing irrigation systems be retrofitted with rain and freeze sensors and/or ET or Smart controllers capable of multiple programming. Rain and freeze sensors and/or ET or Smart controllers must be maintained to function properly. ■ Prohibition of use of poorly maintained irrigation systems that waste water. • Recommend no planting of cool season grasses (such as rye grass or other similar grasses) that intensify cool season water requirements, with an exception allowed for golf courses and public athletic fields. ■ Requirement that the playing surface on all new public athletic fields be irrigated by a separate programmable irrigation zone from surrounding areas. ■ Requirement that all new or rehabilitated irrigation systems must be designed, inspected, and installed in accordance with TCEQ rules. In addition to the conservation measures described above, and when resources and funds are available and duly budgeted, the Plan includes provisions for implementing a water conservation rebate program. Enforcement will be accomplished by City staff during the performance of their normal duties and travel. If violations or potential violations are observed, City staff will first contact the water customer and educate and advise them how to correct the matter in a timely fashion to prevent implementing additional enforcement measures. This Plan applies only to customers of the City of Wylie's water distribution system and not to customers of neighboring water purveyors. The City of Wylie water customers will be notified of the Water Conservation Plan through the following means: ■ City of Wylie website. ■ e-Wylie. ■ Insert in a water bill. Approved By Initial Date Department Director MS 3/1z9/09 City Manager i ORDINANCE NO. 2009-11 AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, ADOPTING A WATER CONSERVATION PLAN FOR THE CITY OF WYLIE TO PROMOTE RESPONSIBLE USE OF WATER; PROVIDING FOR PENALTIES AND/OR THE DISCONNECTION OF WATER SERVICE FOR NONCOMPLIANCE WITH THE PROVISIONS OF THE WATER CONSERVATION PLAN; PROVIDING FOR REPEALING, SAVINGS, AND SEVERABILITY CLAUSES; PROVIDING FOR AN EFFECTIVE DATE OF THIS ORDINANCE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF . WHEREAS, the City of Wylie, Texas (the "City"), recognizes that the amount of water available to its water customers is limited; and WHEREAS, the City recognizes that due to natural limitations, drought conditions, system failures and other acts of God which may occur, the City cannot guarantee an uninterrupted water supply for all purposes at all times; and WHEREAS, the Texas Water Code and the regulations of the Texas Commission on Environmental Quality (the "Commission") require that the City adopt a Water Conservation Plan; and WHEREAS, the City has determined an urgent need in the best interest of the public to adopt a Water Conservation Plan; and WHEREAS, pursuant to Chapter 54 of the Local Government Code, the City is authorized to adopt such Ordinances necessary to preserve and conserve its water resources; and WHEREAS, the City Council of the City of Wylie, Texas ("City Council") desires to adopt the North Texas Municipal Water District (the "NTMWD") Water Conservation Plan as modified for the City, if necessary, as the official City policy for the conservation of water; and WHEREAS, the City Council has investigated and determined that it will be advantageous and beneficial to the citizens of the City and will protect the public health, safety and welfare to adopt a Water Conservation Plan as set forth herein. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE THAT: Section 1. Findings Incorporated. The findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. Ordinance No. 2009-11 Adopting a Water Conversation Plan Page 1 542450.v2 Section 2. Plan Adopted. The City Council hereby approves and adopts the NTMWD Water Conservation Plan (the "Plan"), as modified for the City, if necessary, attached hereto as Exhibit "A", as if recited verbatim herein. The City commits to implement the requirements and procedures set forth in the adopted Plan. Section 3. Penalty. Any customer, as defined by 30 Tex. Admin. Code Chapter 291, failing to comply with the provisions of the Plan shall be subject to a fine of up to two thousand dollars ($2,000.00) per day, per occurrence and/or discontinuance of water service by the City. Proof of a culpable mental state is not required for a conviction of an offense under this section. Each day a customer fails to comply with the Plan is a separate violation. The City's authority to seek injunctive or other civil relief available under the law is not limited by this section. Section 4: Savings/Repealing Clause. All provisions of any ordinance in conflict with this Ordinance are hereby repealed, but such repeal shall not abate any pending prosecution for violation of the repealed ordinance, nor shall the repeal prevent a prosecution from being commenced for any violation if occurring prior to the repeal of the ordinance. Any remaining portions of said ordinance shall remain in full force and effect. Section 5. Compliance with Open Meetings Act. The City Council does hereby find and declare that sufficient written notice of the date, hour, place and subject of the meeting adopting this Ordinance was posted at a designated place convenient to the public for the time required by law preceding the meeting, that such place of posting was readily accessible at all times to the general public, and that all of the foregoing was done as required by law at all times during which this Ordinance and the subject matter thereof has been discussed, considered and foitiially acted upon. The City Council further ratifies, approves and confirms such written notice and the posting thereof. Section 6. Severability. Should any section, subsection, sentence, clause or phrase of this Ordinance be declared unconstitutional or invalid by a court of competent jurisdiction, it is expressly provided that any and all remaining portions of this Ordinance shall remain in full force and effect. The City hereby declares that it would have passed this Ordinance, and each section, subsection, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional or invalid. Section 7. Filing of Ordinance and Plan with Commission. The City Manager or her designee is hereby directed to file a copy of the Plan and this Ordinance with the Commission in accordance with 30 Tex. Admin. Code Chapter 288. Section 8: Effective Date. This Ordinance shall become effective from and after its adoption and publication as required by the City Charter and by law. Ordinance No. 2009-11 Adopting a Water Conversation Plan Page 2 542450.v2 DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS on this le day of April, 2009. Eric Hogue, Mayor ATTESTED TO AND CORRECTLY RECORDED BY: Carole Ehrlich, City Secretary Date of Publication in The Wylie News—April 22, 2009 Ordinance No. 2009-11 Adopting a Water Conversation Plan Page 3 542450.v2 Exhibit "A" City of Wylie Water Conservation Plan Ordinance No. 2009-11 Adopting a Water Conversation Plan Page 4 542450.v2 WATER CONSERVATION PLAN FOR THE CITY OF APRIL 144( V YI II u ; yk 0• y J € Water Conservation Plan City of Wylie TABLE OF CONTENTS 1. INTRODUCTION AND OBJECTIVES 1-1 2. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY RULES 2-1 2.1 Conservation Plans 2-1 3. WATER UTILITY PROFILE 3-1 4. SPECIFICATION OF WATER CONSERVATION GOALS 4-1 5. METERING, WATER USE RECORDS, CONTROL OF UNACCOUNTED WATER, AND LEAK DETECTION AND REPAIR 5-1 5.1 Accurate Metering of Treated Water Deliveries from NTMWD 5-1 5.2 Metering of Customer and Public Uses and Meter Testing, Repair, and Replacement 5-1 5.3 Record Management System 5-1 5.4 Determination and Control of Unaccounted Water 5-1 5.5 Leak Detection and Repair 5-2 5.6 Monitoring of Effectiveness and Efficiency-Annual Water Conservation Report 5-2 5.7 Water Conservation Implementation Report 5-2 6. CONTINUING PUBLIC EDUCATION AND INFORMATION CAMPAIGN 6-1 7. WATER RATE STRUCTURE 7-1 8. OTHER WATER CONSERVATION MEASURES 8-1 8.1 NTMWD System Operation Plan 8-1 8.2 Reuse and Recycling of Wastewater 8-1 8.3 Ordinances, Plumbing Codes, or Rules on Water-Conserving Fixtures 8-1 8.4 Landscape Water Management Measures 8-1 8.5 Additional Water Conservation Measures 8-2 8.6 Requirement for Water Conservation Plans by Wholesale Customers 8-3 8.7 Coordination with Regional Water Planning Group and NTMWD 8-3 Water Conservation Plan City of Wylie 9. IMPLEMENTATION AND ENFORCEMENT OF THE WATER CONSERVATION PLAN 9-1 10. REVIEW AND UPDATE OF WATER CONSERVATION PLAN 10-1 Water Conservation Plan City of Wylie APPENDICES APPENDIX A List of References APPENDIX B Texas Commission on Environmental Quality Rules on Municipal Water Conservation Plans • TAC Title 30, Part 1, Chapter 288, Subchapter A, Rule §288.1 — Definitions (Page B-1) • TAC Title 30, Part 1, Chapter 288, Subchapter A, Rule §288.2 — Water Conservation Plans for Municipal Uses by Public Water Suppliers (Page B-4) APPENDIX C TCEQ Water Utility Profile APPENDIX D NTMWD Member City and Customer Annual Water Conservation Report APPENDIX E Considerations for Landscape Water Management Regulations APPENDIX F Letters to Region C and Region D Water Planning Groups APPENDIX G Adoption of Water Conservation Plan • Municipal Ordinance Adopting Water Conservation Plan • Municipal Utility District Order Adopting Water Conservation Plan • Special Utility District Order Adopting Water Conservation Plan • Water Supply Corporation Resolution Adopting Water Conservation Plan APPENDIX H Illegal Water Connections and Theft of Water • Municipal Ordinance Pertaining to Illegal Water Connections and Theft of Water • Municipal Utility District Order Pertaining to Illegal Water Connections and Theft of Water • Special Utility District Order Pertaining to Illegal Water Connections and Theft of Water • Water Supply Corporation Resolution Pertaining to Illegal Water Connections and Theft of Water APPENDIX I TCEQ Water Conservation Implementation Report iv Water Conservation Plan City of Wylie Water Conservation and Drought Contingency and Water Emergency Response Plan for the City of Wylie, Texas 1. INTRODUCTION AND OBJECTIVES Water supply has always been a key issue in the development of Texas. In recent years, the growing population and economic development of North Central Texas has led to increasing demands for water supplies. At the same time, local and less expensive sources of water supply are largely developed. Additional supplies to meet higher demands will be expensive and difficult to develop. It is therefore important that North Texas Municipal Water District (NTMWD) and The City of Wylie (City) make the most efficient use of existing supplies. This will delay the need for new supplies, minimize the environmental impacts associated with developing new supplies, and delay the high cost of additional water supply development. Recognizing the need for efficient use of existing water supplies, the Texas Commission on Environmental Quality (TCEQ) has developed guidelines and requirements governing the development of water conservation and drought contingency plans for public water suppliers. TCEQ guidelines and requirements are included in Appendix B. The best management practices established by the Water Conservation Implementation Task Force, established pursuant to Senate Bill (SB) 1094 by the 78th Texas Legislature, were also considered in the development of the water conservation measures. The NTMWD developed a Model Water Conservation Plan for its Member Cities and Customers (NTMWD Model Plan) following TCEQ guidelines and requirements. The current NTMWD Model Plan was developed in concert with the NTMWD's Water Conservation Plan and replaces the NTMWD Model Plan dated August 2004 and April 2006. The water conservation sections of the NTMWD Model Plan include measures that are intended to result in ongoing, long-term water savings. The objectives of this water conservation plan are as follows: ■ To reduce water consumption from the levels that would prevail without conservation efforts. • To reduce the loss and waste of water. • To improve efficiency in the use of water. ■ To document the level of recycling and reuse in the water supply. • To extend the life of current water supplies by reducing the rate of growth in demand. The water conservation sections presented in this document were derived from a Model Water Conservation Plan intended for adoption by the NTMWD Member Cities and Customers. In order to adopt this NTMWD Model Plan, the City of Wylie will need to do the following: ■ Complete the water utility profile(Appendix C). 1-1 Water Conservation Plan City of Wylie • Complete the NTMWD member city annual water conservation report (Appendix D). • Complete the annual water conservation implementation report (Appendix I). • Set five-year and ten-year goals for per capita water use(Table 4.1). • Adopt an ordinance approving the plan. The water utility profile, goals, and ordinance(s) or regulations will be provided to NTMWD in draft form for review and comments. Final adopted versions will also be provided to NTMWD, as well as TCEQ. This Water Conservation Plan for the City of Wylie, Texas (City Plan) applies to all users of the City of Wylie water supply. This City Plan includes all of the elements required by TCEQ. 1-2 Water Conservation Plan City of Wylie 2. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY RULES 2.1 Conservation Plans The TCEQ rules governing development of water conservation plans for public water suppliers are contained in TAC Title 30, Part 1, Chapter 288, Subchapter A, Rule 288.2, which is included in Appendix B. For the purpose of these rules, a water conservation plan is defined as "A strategy or combination of strategies for reducing the volume of water withdrawn from a water supply source, for reducing the loss or waste of water, for maintaining or improving the efficiency in the use of water, for increasing the recycling and reuse of water, and for preventing the pollution of water." The elements in the TCEQ water conservation rules covered in the conservation sections of the City Plan are listed below. Minimum Conservation Plan Requirements The minimum requirements in the TAC for water conservation plans for Public Water Suppliers are covered in this report as follows: • 288.2(a)(1)(A)—Utility Profile—Section 3 and Appendix C • 288.2(a)(1)(B)—Specification of Goals—Section 4 • 288.2(a)(1)(C)—Specific, Quantified Goals—Section 4 • 288.2(a)(1)(D)—Accurate Metering—Sections 5.1 and 5.2 • 288.2(a)(1)(E)—Universal Metering—Section 5.2 • 288.2(a)(1)(F)— Determination and Control of Unaccounted Water—Section 5.4 • 288.2(a)(1)(G)—Public Education and Infouliation Program—Section 6 • 288.2(a)(1)(H)—Non-Promotional Water Rate Structure—Section 7 • 288.2(a)(1)(I)—Reservoir System Operation Plan—Section 8.1 • 288.2(a)(1)(J)—Means of Implementation and Enforcement—Section 9 • 288.2(a)(1)(K) — Coordination with Regional Water Planning Group — Section 8.7 and Appendix F • 288.2(c)—Review and Update of Plan—Section 10 Conservation Additional Requirements (Population over 5,000) The TAC includes additional requirements for water conservation plans for Public Water Suppliers serving a population over 5,000: • 288.2(a)(2)(A) — Leak Detection, Repair, and Water Loss Accounting — Sections 5.4, 5.5, and 5.6 • 288.2(a)(2)(B)—Record Management System—Section 5.3 2-1 Water Conservation Plan City of Wylie • 288.2(a)(2)(C) — Requirement for Water Conservation Plans by Wholesale Customers—Section 8.6 Additional Conservation Strategies The TCEQ requires that a water conservation implementation report be completed and submitted on an annual basis. This report is included in Appendix I. In addition to the TCEQ required water conservation strategies, the NTMWD also requires the following strategy to be included in the Member City and Customer plans and this strategy is incorporated into the City Plan. • 288.2(a)(3)(F) — Considerations for Landscape Water Management Regulations — Section 8.4 and Appendix E TCEQ rules also include optional, but not required, conservation strategies, which may be adopted by suppliers. The NTMWD recommends that the following strategies be included in the Member City and Customer water conservation plans: • 288.2(a)(3)(A)—Conservation Oriented Water Rates—Section 7 • 288.2(a)(3)(B) — Ordinances, Plumbing Codes or Rules on Water-Conserving Fixtures—Section 8.3 • 288.2(a)(3)(C) —Replacement or Retrofit of Water-Conserving Plumbing Fixtures— Section 8.5 • 288.2(a)(3)(D)—Reuse and Recycling of Wastewater—Section 8.2 • 288.2(a)(3)(F) — Considerations for Landscape Water Management Regulations — Section 8.5 and Appendix E • 288.2(a)(3)(G)—Monitoring Method—Section 5.6 • 288.2(a)(3)(H)—Additional Conservation Ordinance Provisions—Section 8.5 2-2 Water Conservation Plan City of Wylie 3. WATER UTILITY PROFILE Appendix C to this City Plan is the City of Wylie water utility profile based on the format recommended by the TCEQ. In adopting this City Plan, the City of Wylie will provide a draft water utility profile to NTMWD for review and comment. A final water utility profile will also be provided to NTMWD. 3-1 Water Conservation Plan City of Wylie 4. SPECIFICATION OF WATER CONSERVATION GOALS TCEQ rules require the adoption of specific water conservation goals for a water conservation plan. As part of plan adoption, each Member City and Customer must develop 5-year and 10-year goals for per capita municipal use. These goals should be submitted to NTMWD in draft form for review. The goals for this City Plan include the following: • Maintain the per capita municipal water use below the specified amount in gallons per capita per day in a dry year, as shown in the completed Table 4.1. • Maintain the level of unaccounted water in the system below 12 percent annually in 2009 and subsequent years, as discussed in Section 5.4. • Implement and maintain a program of universal metering and meter replacement and repair, as discussed in Section 5.2. • Increase efficient water usage through a water conservation ordinance, order or resolution as discussed in Section 8.4 and Appendix E. • Decrease waste in lawn irrigation by implementation and enforcement of landscape water management regulations, as discussed in Section 8.5 and Appendix E. • Raise public awareness of water conservation and encourage responsible public behavior by a public education and infoiination program, as discussed in Section 6. • Develop a system specific strategy to conserve water during peak demands, thereby reducing the peak use. Table 4.1 Five-Year and Ten-Year Municipal Per Capita Water Use Goals (gpcd) Current 5-Year 10-Year Description Average Goal Goal (gpcd) (gpcd) (gpcd) Current 5-Year Average Per Capita Municipal 119* 119* 119* Use with Credit for Reuse Expected Reduction due to Low-Flow 0 1 1 Plumbing Fixtures Projected Reduction Due to Elements in this 0 3 3 City Plan Water Conservation Goals (with credit for 119 115 115 reuse) *Based on 2004-2008 consumption 4-1 Water Conservation Plan City of Wylie 5. METERING, WATER USE RECORDS, CONTROL OF UNACCOUNTED WATER, AND LEAK DETECTION AND REPAIR One of the key elements of water conservation is tracking water use and controlling losses through illegal diversions and leaks. It is important to carefully meter water use, detect and repair leaks in the distribution system and provide regular monitoring of unaccounted water. 5.1 Accurate Metering of Treated Water Deliveries from NTMWD Water deliveries from NTMWD are metered by NTMWD using meters with accuracy of±2 percent. These meters are calibrated on a monthly basis by NTMWD to maintain the required accuracy. 5.2 Metering of Customer and Public Uses and Meter Testing,Repair, and Replacement The provision of water to all customers, including private, public and governmental users, will continue to be metered in the City of Wylie. The City of Wylie will test and replace their residential customer meters on a regular basis. All residential customer meters will be budgeted to be replaced on a minimum of a 15-year cycle. Additionally, large meters will be regularly tested on no less than a 5-year interval and either maintained or replaced when their test flow is more than a 3 percent difference from actual flow. 5.3 Record Management System As required by TAC Title 30, Part 1,Chapter 288, Subchapter A,Rule 288.2(a)(2)(B), the City of Wylie will maintain a customer billing and record management system that allows for the separation of water sales and uses into residential, commercial,public/institutional, and industrial categories. This information will be included in an annual water conservation report, as described in Section 5.6. Should TCEQ, TWDB, or NTMWD require the inclusion of additional customer classes, the City will add the required classes to its billing and records management system. 5.4 Determination and Control of Unaccounted Water Unaccounted water is the difference between water delivered to the City of Wylie from NTMWD (and other supplies, if applicable) and metered water sales to customers plus authorized but unmetered uses. (Authorized but unmetered uses would include use for fire fighting, releases for flushing of lines, uses associated with new construction, etc.). Unaccounted water can include several categories: ■ Inaccuracies in customer meters. (Customer meters tend to run more slowly as they age and under-report actual use.) ■ Accounts which are being used but have not yet been added to the billing system. ■ Losses due to water main breaks and leaks in the water distribution system. ■ Losses due to fire fighting. 5-1 Water Conservation Plan City of Wylie • Losses due to illegal connections and theft. • Other. Measures to control unaccounted water will be part of the routine operations of the City of Wylie. Maintenance crews and personnel will test for, observe for, and report evidence of leaks in the water distribution system. A leak detection and repair program is described in Section 5.5 below. Meter services technicians and all City crews will watch for and report signs of water loss and illegal connections, so they can be quickly addressed. Unaccounted water should be calculated in accordance with the provisions of Appendix C. With the measures described in this City Plan, the City of Wylie should maintain unaccounted water below 12 percent in 2009 and subsequent years. If unaccounted water exceeds this goal, the City of Wylie will implement a more intensive audit to determine the source(s) of and reduce the unaccounted water. The annual conservation report described below is the primary tool that should be used to monitor unaccounted water. 5.5 Leak Detection and Repair As described above, City crews and personnel should look for and report evidence of leaks in the water distribution system. Areas of the water distribution system, in which numerous leaks and line breaks occur, should be targeted for replacement as funds are available. 5.6 Monitoring of Effectiveness and Efficiency - Annual Water Conservation Report Appendix D is a form that should be used in the development of an annual water conservation report by the City of Wylie. This form should be completed by March 31 of the following year and used to monitor the effectiveness and efficiency of the water conservation program and to plan conservation-related activities for the next year. The form records the water use by category, per capita municipal use, and unaccounted water for the current year and compares them to historical values. The annual water conservation report should be sent to NTMWD, which will monitor NTMWD Member Cities' and Customers' water conservation trends. 5.7 Water Conservation Implementation Report Appendix I includes the TCEQ-required water conservation implementation report. The report is due to the TCEQ by May 1 of every year, starting in the year 2010. This report lists the various water conservation strategies that have been implemented, including the date the strategy was implemented. The report also calls for the five-year and ten-year per capita water use goals from the water conservation plan. The reporting entity must answer whether or not these goals have been met and if not, why not. The amount of water saved is also requested. 5-2 Water Conservation Plan City of Wylie 6. CONTINUING PUBLIC EDUCATION AND INFORMATION CAMPAIGN The continuing public education and information campaign on water conservation includes the following elements: • Utilize the "Water IQ: Know Your Water" and other public education materials produced by the NTMWD. • Insert water conservation information with water bills. Inserts will include material developed by the City of Wylie staff and material obtained from the NTMWD, TWDB, TCEQ, and other sources. • Encourage local media coverage of water conservation issues and the importance of water conservation. • Notify local organizations, schools, and civic groups that the City of Wylie staff and staff of the NTMWD are available to make presentations on the importance of water conservation and ways to save water. • Promote the Texas Smartscape web site(www.txsmartscape.com) and provide water conservation brochures and other water conservation materials available to the public at City Hall and other public places. • Make infoiiiiation on water conservation available on its web site and include links to the "Water IQ: Know Your Water" website, Texas Smartscape web site and to information on water conservation on the TWDB and TCEQ web sites and other resources. 6-1 Water Conservation Plan City of Wylie 7. WATER RATE STRUCTURE The City of Wylie will continue to bill customers using an increasing block rate water structure that is intended to encourage water conservation and discourage excessive use and waste of water. An example water rate structure suggested by the NTMWD Model Plan is provided below. The current City of Wylie rate structure is similar to the minimum requirements suggested by the NTMWD. Residential Rates 1. Monthly minimum charge. This can (but does not have to) include up to 2,000 gallons water use with no additional charge. 2. Base charge per 1,000 gallons up to the approximate average residential use. 3. 2"d tier (from the average to 2 times the approximate average) at 1.25 to 2.0 times the base charge. 4. 3`d tier (above 2 times the approximate average) at 1.25 to 2.0 times the 2nd tier. 5. The residential rate can also include a lower tier for basic household use up to 4,000 gallons per month or a determined basic use. Commercial/Industrial Rates Commercial/industrial rates should include at least 2 tiers, with rates for the 2nd tier at 1.25 to 2.0 times the first tier. Higher water rates for commercial irrigation use are encouraged, but not required. 7-1 Water Conservation Plan City of Wylie 8. OTHER WATER CONSERVATION MEASURES 8.1 NTMWD System Operation Plan Member Cities and Customers of NTMWD purchase treated water from NTMWD and do not have surface water supplies for which to implement a system operation plan. NTMWD's permits do allow some coordinated operation of its water supply sources, and NTMWD is seeking additional water rights for coordinated operation to optimize its available water supplies. 8.2 Reuse and Recycling of Wastewater Most Member Cities and Customers do not own and operate their own wastewater treatment plants. Their wastewater is treated by NTMWD. NTMWD currently has the largest wastewater reuse program in the state. NTMWD has water rights allowing reuse of up to 71,882 acre-feet per year of this treated wastewater through Lake Lavon for municipal purposes. In addition, NTMWD has also developed the East Fork Raw Water Supply Project which can divert up to 157,393 acre-feet per year based on treated wastewater discharges by the NTMWD. When fully developed, these two reuse projects will provide up to 44 percent of the NTMWD's currently permitted water supplies. NTMWD also provides treated effluent from its wastewater treatment plants available for direct reuse for landscape irrigation and industrial use. Although the City of Wylie does not operate its own wastewater treatment plant, the NTMWD encourages those Member Cities and Customers who own and operate their own wastewater treatment plants should move toward reusing treated effluent for irrigation purposes at their plant site over the next three years. These entities should also seek other alternatives for reuse of recycled wastewater effluent. 8.3 Ordinances, Plumbing Codes,or Rules on Water-Conserving Fixtures The state has required water-conserving fixtures in new construction and renovations since 1992. The state standards call for flows of no more than 2.5 gallons per minute (gpm) for faucets, 3.0 gpm for showerheads, and 1.6 gallons per flush for toilets. Similar standards are now required nationally under federal law. These state and federal standards assure that all new construction and renovations will use water-conserving fixtures. The City of Wylie will continue to implement ordinances, plumbing codes, and rules on water conserving fixtures as they evolve through relevant building codes and State of Texas requirements. A rebate program to encourage water conservation through replacement of older fixtures may be offered when resources are available. Items for a potential rebate program are described in Section 8.5. 8.4 Landscape Water Management Measures The following landscape water management measures are adopted for the City Plan. 8-1 Water Conservation Plan City of Wylie • Time of day restrictions prohibiting lawn irrigation watering from 10 AM to 6 PM beginning April 1 and ending October 31 of each year. • Prohibition of watering of impervious surfaces. (Wind driven water drift will be taken into consideration.) • Prohibition of outdoor watering during precipitation or freeze events. • Lawn and landscape irrigation limited to twice per week as per the chart below: Trash Day Watering Days Monday Monday and Thursday Tuesday Tuesday and Friday Wednesday Wednesday and Saturday Thursday Thursday and Sunday Friday Friday and Monday • Prohibition of the use of treated water to fill or refill residential, amenity, and any other natural or manmade ponds. A pond is considered to be a still body of water with a surface area of 500 square feet or more. • Rain and freeze sensors and/or ET or Smart controllers required on all new irrigation systems. Rain and freeze sensors and/or ET or Smart controllers must be maintained to function properly. • "At home" car washing can be done only when using a hose with a shut-off nozzle. • Prohibition of watering areas that have been overseeded with cool season grasses (such as rye grass or other similar grasses), except for golf course and public athletic fields. 8.5 Additional Water Conservation Measures Appendix E is a summary of considerations for landscape water management regulations adopted as part of the development of this water conservation plan. These regulations are intended to minimize waste in landscape irrigation. Appendix E includes the required landscape water measures in 8.4. In addition, the City of Wylie adopts the following as part of the City Plan: • Recommend, not require, that all existing irrigation systems be retrofitted with rain and freeze sensors and/or ET or Smart controllers capable of multiple programming. Rain and freeze sensors and/or ET or Smart controllers must be maintained to function properly. • Prohibition of use of poorly maintained irrigation systems that waste water. 8-2 Water Conservation Plan City of Wylie • Recommend no planting of cool season grasses (such as rye grass or other similar grasses) that intensify cool season water requirements, with an exception allowed for golf courses and public athletic fields. • Requirement that the playing surface on all new public athletic fields be irrigated by a separate programmable irrigation zone from surrounding areas. • Requirement that all new or rehabilitated irrigation systems must be designed, inspected, and installed in accordance with TCEQ rules. In addition to the conservation measures described above and when resources are available, the City of Wylie may offer rebates for purchase of water conserving devices. The items for any potential City rebate program will change from time to time as the City's Water Conservation Rebate Program evolves. These items may include: • Low-flow toilet replacement and rebate programs, • Rebates for rain and freeze sensors and/or ET or Smart controllers, • Low-flow showerhead and sink aerators replacement programs or rebates, • ET/Smart irrigation controller rebates, • Water efficient clothes washer rebates, • Pressure reducing valve installation rebates, • On-demand hot water heater rebates, • Rain barrel rebates, or • Other water conservation incentive programs. 8.6 Requirement for Water Conservation Plans by Wholesale Customers The NTMWD Model Plan requires that every contract for the wholesale sale of water by Member Cities and/or Customers that is entered into, renewed, or extended after the adoption of this water conservation plan will include a requirement that the wholesale customer and any wholesale customers of that wholesale customer develop and implement a water conservation plan meeting the requirements of TAC Title 30, Part 1, Chapter 288, Subchapter A, Rule 288.2. The requirement will also extend to each successive wholesale customer in the resale of the water. The City of Wylie does not currently contract for the resale of water to wholesale customers. 8.7 Coordination with Regional Water Planning Group and NTMWD Appendix F includes a letter sent by NTMWD to the Chair of the Region C water planning group with their NTMWD Model Plan. The City of Wylie will send a copy of their draft ordinance implementing the City Plan and their water utility profile to NTMWD for review and comment. The adopted ordinance and the adopted water utility profile will be sent to the Chair of the Region C Water Planning Group and to NTMWD. 8-3 Water Conservation Plan City of Wylie 9. IMPLEMENTATION AND ENFORCEMENT OF THE WATER CONSERVATION PLAN Appendix G contains a copy of an ordinance, order, or resolution which may be tailored to meet Member City or Customer City needs and be adopted by the City Council or governing board regarding the water conservation plan. The ordinance, order, or resolution designates responsible officials to implement and enforce the water conservation plan. Appendix E, the considerations for landscape water management regulations, also includes information about enforcement. Appendix H includes a copy of an ordinance, order, or resolution that may be adopted related to illegal connections and water theft. The City of Wylie is responsible for developing regulations, ordinances, policies, or procedures for enforcement of water conservation guidelines. The City of Wylie will adopt an ordinance(s) implementing the City Plan, which incorporates the NTMWD Model Plan, including the determination of fines and enforcement procedures. 9-1 Water Conservation Plan City of Wylie 10. REVIEW AND UPDATE OF WATER CONSERVATION PLAN The City Plan will be updated based upon receipt of new or updated infoiiiiation, and as required by the TCEQ. APPENDIX A LIST OF REFERENCES Appendix A List of References (1) Title 30 of the Texas Administrative Code, Part 1, Chapter 288, Subchapter A, Rules 288.1 and 288.2, downloaded from httn:1/info.so s.state.tx us/pi s/pub/readta c$ex t.Vi ewTAC?tac view=48Lti=30&pt=1& ch=288,July 2007. (2) Water Conservation Implementation Task Force: "Texas Water Development Board Report 362, Water Conservation Best Management Practices Guide," prepared for the Texas Water Development Board, Austin,November 2004. (3) Freese and Nichols, Inc.: North Texas Municipal Water District Water Conservation and Drought Contingency/Water Emergency Response Plan, prepared for the North Texas Municipal Water District, Fort Worth, March 2008. The following conservation and drought contingency plans and related documents were reviewed in the development of this plan. References marked with a * were used heavily in the development of this plan. (4) Edward Motley, Marisa Vergara,Tom Gooch, and Stephanie Griffin: Memorandum to File on "Region C Municipal Water Use Projections Adopted on August 18, 2003,"Fort Worth, August 21, 2003. (5) City of Austin Water Conservation Division: "City of Austin Water Drought Contingency Plan, Developed to Meet Senate Bill 1 Regulatory Requirements," Austin, August 1999. (6) City of Austin Water Conservation Division: "City of Austin Water Conservation Plan, Developed to Meet Senate Bill 1 Regulatory Requirements," Austin, August 1999. (7) Upper Trinity Regional Water District: "Water Conservation Plan and Emergency Water Demand Management Plan," adopted by the Board of Directors, Lewisville, August 5, 1999. (8) Upper Trinity Regional Water District: "Water Conservation Plan and Emergency Water Demand Management Plan (2002 Amended)," adopted by the Board of Directors, Lewisville,February 2002. (9) *City of Dallas Water Utilities Department: "City of Dallas Water Management Plan," adopted by the City Council, Dallas, September 1999. (10) Updates to City of Dallas Water Management Plan found at http://www.dallascityhall.com in September 2003. (11) *City of Dallas Water Utilities Department: "City of Dallas Water Conservation Plan," adopted by the City Council, Dallas, September 1999. (12) *City of Fort Worth: "Water Conservation plan for the City of Fort Worth," Fort Worth, August 1999. A-1 (13) Updates to the City of Fort Worth water conservation plan found at http://ci./fort- worth.tx.us in September 2003. (14) *City of Fort Worth: "Emergency Water Management Plan for the City of Fort Worth,"Fort Worth, August 19, 2003. (15) HDR Engineering, Inc.: "Water Conservation and Emergency Demand Management Plan," prepared for the Tan-ant Regional Water District, Austin, February 2000. (16) Freese and Nichols, Inc.: "Water Conservation and Drought Contingency Plan," prepared for Brown County Water Improvement District No. 1, Fort Worth, August 1999. (17) Freese and Nichols, Inc.: "Water Conservation and Drought Contingency Plan," prepared for the Sabine River Authority of Texas, Fort Worth, September 1994. (18) HDR Engineering, Inc.: "Water Conservation and Emergency Demand Management Plan," prepared for the Tarrant Regional Water District, Austin, June 1998. (19) HDR Engineering, Inc.: "Water Conservation Plan for the City of Corpus Christi," adopted by the City of Corpus Christi City Council,August 24, 1999. (20) City of Houston's water conservation plan downloaded September 2003 from http://www.cityofhouston.gov (21) City of Houston: "Ordinance N. 2001-753, Amending Chapter 47 of the Code of Ordinances Relating to Water Emergencies,"Houston, August 2001. (22) City of Houston: "Ordinance No. 98-764, Relating to Water Conservation," Houston, September 1998. (23) City of Houston: "Water Conservation Plan," 1998. (24) City of Houston: "Water Emergency Response Plan,"Houston,July 15, 1998. (25) City of Lubbock: "Water Conservation Plan," ordinance number 10177 adopted by the City Council in August 1999. (26) City of El Paso Water Conservation Ordinance downloaded August 14, 2003 from http://www.epwu.org/ordinance.html (27) San Antonio Water System: "Water Conservation and Reuse Plan," San Antonio, November 1998 with June 2002 updates. (28) North Texas Municipal Water District: "District Policy No. 24 Water Conservation Plan Containing Drought Contingency Plan," adopted August 1999. (29) GDS Associates, Inc.: "Water Conservation Study," prepared for the Texas Water Development Board, Fort Worth, 2002. (30) A & N Technical Services, Inc.: "BMP Costs & Savings Study: A Guide to Data and Methods for Cost-Effectiveness Analysis of Urban Water Conservation Best Management Practices," prepared for The California Urban Water Conservation Council, Santa Monica, California,July 2000. A-2 (31) *City of Dallas: "City of Dallas Ordinances, Chapter 49, Section 21.1," Dallas, October 1, 2001. A-3 APPENDIX B TEXAS COMMISSION ON ENVIRONMENTAL QUALITY RULES ON MUNICIPAL WATER CONSERVATION PLANS APPENDIX B Texas Commission on Environmental Quality Rules on Municipal Water Conservation Plans Texas Administrative Code TITLE 30 ENVIRONMENTAL QUALITY PART 1 TEXAS COMMISSION ON ENVIRONMENTAL QUALITY CHAPTER 288 WATER CONSERVATION PLANS, DROUGHT CONTINGENCY PLANS, GUIDELINES AND REQUIREMENTS SUBCHAPTER A WATER CONSERVATION PLANS RULE §288.1 Definitions The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) Agricultural or Agriculture--Any of the following activities: (A) cultivating the soil to produce crops for human food, animal feed,or planting seed or for the production of fibers; (B)the practice of floriculture, viticulture, silviculture, and horticulture,including the cultivation of plants in containers or non-soil media by a nursery grower; (C) raising, feeding, or keeping animals for breeding purposes or for the production of food or fiber, leather, pelts,or other tangible products having a commercial value; (D)raising or keeping equine animals; (E)wildlife management; and (F)planting cover crops, including cover crops cultivated for transplantation, or leaving land idle for the purpose of participating in any governmental program or normal crop or livestock rotation procedure. (2)Agricultural use--Any use or activity involving agriculture, including irrigation. (3) Conservation--Those practices, techniques, and technologies that reduce the consumption of water, reduce the loss or waste of water, improve the efficiency in the use of water, or increase the recycling and reuse of water so that a water supply is made available for future or alternative uses. (4) Drought contingency plan--A strategy or combination of strategies for temporary supply and demand management responses to temporary and potentially recurring water supply shortages and other water supply emergencies. A drought contingency plan may be a separate document identified as such or may be contained within another water management document(s). (5) Industrial use--The use of water in processes designed to convert materials of a lower B-1 order of value into forms having greater usability and commercial value, commercial fish production, and the development of power by means other than hydroelectric, but does not include agricultural use. (6) Irrigation--The agricultural use of water for the irrigation of crops, trees, and pastureland, including,but not limited to, golf courses and parks which do not receive water through a municipal distribution system. (7)Irrigation water use efficiency--The percentage of that amount of irrigation water which is beneficially used by agriculture crops or other vegetation relative to the amount of water diverted from the source(s)of supply. Beneficial uses of water for irrigation purposes include,but are not limited to, evapotranspiration needs for vegetative maintenance and growth, salinity management, and leaching requirements associated with irrigation. (8) Mining use--The use of water for mining processes including hydraulic use, drilling, washing sand and gravel, and oil field repressuring. (9) Municipal per capita water use—The sum total of water diverted into a water supply system for residential, commercial, and public and institutional uses divided by actual population served. (10)Municipal use--The use of potable water within or outside a municipality and its environs whether supplied by a person,privately owned utility, political subdivision, or other entity as well as the use of sewage effluent for certain purposes, including the use of treated water for domestic purposes, fighting fires, sprinkling streets, flushing sewers and drains, watering parks and parkways, and recreational purposes, including public and private swimming pools, the use of potable water in industrial and commercial enterprises supplied by a municipal distribution system without special construction to meet its demands, and for the watering of lawns and family gardens. (11)Municipal use in gallons per capita per day--The total average daily amount of water diverted or pumped for treatment for potable use by a public water supply system. The calculation is made by dividing the water diverted or pumped for treatment for potable use by population served. Indirect reuse volumes shall be credited against total diversion volumes for the purpose of calculating gallons per capita per day for targets and goals. (12)Nursery grower--A person engaged in the practice of floriculture,viticulture, silviculture, and horticulture, including the cultivation of plants in containers or nonsoil media, who grows more than 50%of the products that the person either sells or leases, regardless of the variety sold, leased, or grown. For the purpose of this definition, grow means the actual cultivation or propagation of the product beyond the mere holding or maintaining of the item prior to sale or lease, and typically includes activities associated with the production or multiplying of stock such as the development of new plants from cuttings, grafts,plugs, or seedlings. (13)Pollution--The alteration of the physical, thermal, chemical,or biological quality of, or the contamination of, any water in the state that renders the water harmful, detrimental,or injurious to humans, animal life,vegetation,or property, or to the B-2 public health, safety,or welfare, or impairs the usefulness or the public enjoyment of the water for any lawful or reasonable purpose. (14) Public water supplier--An individual or entity that supplies water to the public for human consumption. (15)Regional water planning group--A group established by the Texas Water Development Board to prepare a regional water plan under Texas Water Code, §16.053. (16) Retail public water supplier--An individual or entity that for compensation supplies water to the public for human consumption. The term does not include an individual or entity that supplies water to itself or its employees or tenants when that water is not resold to or used by others. (17) Reuse--The authorized use for one or more beneficial purposes of use of water that remains unconsumed after the water is used for the original purpose of use and before that water is either disposed of or discharged or otherwise allowed to flow into a watercourse, lake, or other body of state-owned water. (18)Water conservation plan--A strategy or combination of strategies for reducing the volume of water withdrawn from a water supply source, for reducing the loss or waste of water, for maintaining or improving the efficiency in the use of water, for increasing the recycling and reuse of water, and for preventing the pollution of water. A water conservation plan may be a separate document identified as such or may be contained within another water management document(s). (19) Wholesale public water supplier--An individual or entity that for compensation supplies water to another for resale to the public for human consumption. The term does not include an individual or entity that supplies water to itself or its employees or tenants as an incident of that employee service or tenancy when that water is not resold to or used by others, or an individual or entity that conveys water to another individual or entity,but does not own the right to the water which is conveyed, whether or not for a delivery fee. Source Note: The provisions of this §288.1 adopted to be effective May 3, 1993, 18 TexReg 2558; amended to be effective February 21, 1999, 24 TexReg 949; amended to be effective April 27, 2000, 25 TexReg 3544; amended to be effective August 15, 2002, 27 TexReg 7146, amended to be effective October 7, 2004, 29 TexReg 9384. B-3 Texas Administrative Code TITLE 30 ENVIRONMENTAL QUALITY PART 1 TEXAS COMMISSION ON ENVIRONMENTAL QUALITY CHAPTER 288 WATER CONSERVATION PLANS, DROUGHT CONTINGENCY PLANS, GUIDELINES AND REQUIREMENTS SUBCHAPTER A WATER CONSERVATION PLANS RULE §288.2 Water Conservation Plans for Municipal Uses by Public Water Suppliers (a)A water conservation plan for municipal water use by public water suppliers shall provide information in response to the following. If the plan does not provide information for each requirement, the public water supplier shall include in the plan an explanation of why the requirement is not applicable. (1) Minimum requirements. All water conservation plans for municipal uses by public drinking water suppliers must include the following elements: (A) a utility profile including,but not limited to, information regarding population and customer data, water use data, water supply system data, and wastewater system data; (B) until May 1, 2005, specification of conservation goals including,but not limited to, municipal per capita water use goals,the basis for the development of such goals, and a time frame for achieving the specified goals; (C)beginning May 1, 2005, specific, quantified five-year and ten-year targets for water savings to include goals for water loss programs and goals for municipal use, in gallons per capita per day. The goals established by a public water supplier under this subparagraph are not enforceable; (D)metering device(s), within an accuracy of plus or minus 5.0%in order to measure and account for the amount of water diverted from the source of supply; (E) a program for universal metering of both customer and public uses of water, for meter testing and repair, and for periodic meter replacement; (F)measures to determine and control unaccounted-for uses of water(for example, periodic visual inspections along distribution lines; annual or monthly audit of the water system to determine illegal connections; abandoned services; etc.); (G) a program of continuing public education and information regarding water conservation; (H) a water rate structure which is not "promotional," i.e., a rate structure which is cost-based and which does not encourage the excessive use of water; (I) a reservoir systems operations plan, if applicable, providing for the B-4 coordinated operation of reservoirs owned by the applicant within a common watershed or river basin in order to optimize available water supplies; and (J)a means of implementation and enforcement which shall be evidenced by: (i) a copy of the ordinance,resolution, or tariff,indicating official adoption of the water conservation plan by the water supplier; and (ii)a description of the authority by which the water supplier will implement and enforce the conservation plan; and (K)documentation of coordination with the regional water planning groups for the service area of the public water supplier in order to ensure consistency with the appropriate approved regional water plans. (2) Additional content requirements. Water conservation plans for municipal uses by public drinking water suppliers serving a current population of 5,000 or more and/or a projected population of 5,000 or more within the next ten years subsequent to the effective date of the plan must include the following elements: (A) a program of leak detection, repair, and water loss accounting for the water transmission, delivery, and distribution system in order to control unaccounted-for uses of water; (B) a record management system to record water pumped, water deliveries, water sales, and water losses which allows for the desegregation of water sales and uses into the following user classes: (i) residential; (ii) commercial; (iii)public and institutional; and (iv)industrial; (C)a requirement in every wholesale water supply contract entered into or renewed after official adoption of the plan(by either ordinance, resolution, or tariff), and including any contract extension, that each successive wholesale customer develop and implement a water conservation plan or water conservation measures using the applicable elements in this chapter. If the customer intends to resell the water, then the contract between the initial supplier and customer must provide that the contract for the resale of the water must have water conservation requirements so that each successive customer in the resale of the water will be required to implement water conservation measures in accordance with the provisions of this chapter. (3)Additional conservation strategies. Any combination of the following strategies shall be selected by the water supplier, in addition to the minimum requirements in paragraphs(1) and(2)of this subsection, if they are necessary to achieve the stated water conservation goals of the plan. The commission may require that any of the following strategies be implemented by the water supplier if the commission determines that the strategy is necessary to achieve the goals of the B-5 water conservation plan: (A)conservation-oriented water rates and water rate structures such as uniform or increasing block rate schedules, and/or seasonal rates,but not flat rate or decreasing block rates; (B) adoption of ordinances,plumbing codes, and/or rules requiring water- conserving plumbing fixtures to be installed in new structures and existing structures undergoing substantial modification or addition; (C) a program for the replacement or retrofit of water-conserving plumbing fixtures in existing structures; (D) reuse and/or recycling of wastewater and/or graywater; (E) a program for pressure control and/or reduction in the distribution system and/or for customer connections; (F) a program and/or ordinance(s) for landscape water management; (G) a method for monitoring the effectiveness and efficiency of the water conservation plan; and (H) any other water conservation practice,method, or technique which the water supplier shows to be appropriate for achieving the stated goal or goals of the water conservation plan. (b)A water conservation plan prepared in accordance with 31 TAC §363.15 (relating to Required Water Conservation Plan)of the Texas Water Development Board and substantially meeting the requirements of this section and other applicable commission rules may be submitted to meet application requirements in accordance with a memorandum of understanding between the commission and the Texas Water Development Board. (c)Beginning May 1, 2005, a public water supplier for municipal use shall review and update its water conservation plan, as appropriate, based on an assessment of previous five-year and ten-year targets and any other new or updated information. The public water supplier for municipal use shall review and update the next revision of its water conservation plan not later than May 1, 2009, and every five years after that date to coincide with the regional water planning group. Source Note: The provisions of this §288.2 adopted to be effective May 3, 1993, 18 TexReg 2558; amended to be effective February 21, 1999, 24 TexReg 949; amended to be effective April 27, 2000, 25 TexReg 3544; amended to be effective October 7, 2004, 29 TexReg 9384. B-6 APPENDIX C TCEQ WATER UTILITY PROFILE APPENDIX C Water Utility Profile Based on TCEQ Format(Updated to Match November 5,2004 TCEQ Profile) The purpose of the Water Utility Profile is to assist an applicant with water conservation plan development and to ensure that important information and data be considered when preparing your water conservation plan and goals. You may contact the Municipal Water Conservation Unit of the TWDB at 512-936-2391 for assistance,or the Resource Protection Team at 512-239- 4691 if submitted to the TCEQ. You may also contact Denise Hickey of NTMWD at 972/442-5405 or Tom Gooch of Freese and Nichols at 817/735-7300. Name of Entity: City of Wylie Address&Zip: 949 Henlsey Lane Telephone Number: (972)442-7588 Fax Number (972)442-8198 Form Completed by: Albert Garza Title: Water Quality Specialist Signature: Date: 03/27/2009 Name and phone number of person/department responsible for implementing a water conservation program: Name: Phone Number: I. POPULATION AND CUSTOMER DATA A. Population and Service Area Data 1. Please attach a copy of your service-area map and,if applicable,a copy of your Certificate of Convenience and Necessity and a service-area map. 2. Service area size(square miles): ia 3. Current population of service area: 40.941 as of year ZQL3$ 4. Current population served by utility: water: 35.280 wastewater: 40,941 5. Population served by water utility for the previous five years. (Please list by year in ascending order.): Year Population 2004 27,093 2005 31,710 2006 33,441 2007. 34,833 2008 35,280 C-1 6. Projected population for service area in the following decades: ` Year Population 2010 41,300 2015 48,400 2020 55,600 2025 60,000 2030 62,500 2035 65,000 7. List source/method for the calculation of current and projected population: NTMWD B. Active Connections 1. Current number of active connections. Check whether multi-family service is counted as Residential_x_ or Commercial_x_. Current year is: 2008 Treated Water Users Metered Non-Metered Total Residential 10,356 10,356 Commercial 479 479 Industrial 14 14 Other 49 49 Total 10,898 0 10,898 2. List the net number of new connections per year for most recent three years: Year 2006 I 2007 2008 Residential 2,410 2,335 1,922 Commercial - 44 60 93 _ Industrial 0 0 1 Other 5 9 1 Total 2,459 2,404 2,017 C. High Volume Customers List annual water use for the five highest volume customers. (Please indicate if treated or raw water delivery.): Use Treated or . Customer (1,000 gal/yr) Raw Water? Global Innovation 43,203 Treated Wylie Ventures 12,320 Treated Yes Company(South Fork) 11,963 Treated , WISD Jr. High#3 ; 11,632 I Treated Nortex Nursy 9,411 I Treated C-2 II. WATER USE DATA FOR SERVICE AREA A. Water Accounting Data I. Amount of water use for previous five years(in 1,000 gal): Please indicate: Diverted Water Treated Water x Year 2004 2005 2006 1 2007 1 2008 January 74,480 79,628 110,5411 84,925 104,353 February 65,350 72,553 80,463 77,494 94,476 March 78,480 82,528 97,6451 98,698 111,625 April 104,480 109,906 134,1091 94,440 117,428 May 124,800 137,194 157,343 104,400 155,993_ June 104,180 161,581 180,566 101,243 112,699 ;July 153,570 177,715 182,268 107,955 212,770 August 159,910 193,683 207,038 172,4271 196,442 September 138,290 206,295 159,627 153,112 143,573 October 107,260 164,131 131,054 137,808 146,533 November 80,720 117,758 105,350 124,1001 88,932 December 82,250 97,624 89,607 99,705 88,879 Total 1,273,770 1,600,5961 1,635,611 1,356,307 1,573,703 Please indicate how the above figures were determined(e.g.,from a master meter located at the point of diversion,from a stream,or located at a point where raw water enters the treatment plant,or from water sales) Master meters located at point of entry 2. Amount of water(in 1,000 gallons)delivered(sold)as recorded by the following account types No Wholesale Year Residential Commercial Industrial I Bulk Public/Institulonal Total Sold 2004 762,929 I 210,160 59,325 I 3,138 1 42,634 1,078,186 2005 971,934 262,507 87,029 1 28,173 73,127 1,422,770 2006 1,019,082 ' 198,426 118,468 I 34,293 57,231 1,427,500 2007 821,379 I 165,679 83,438 9,785 54,790 1,135,071 _ _ 2008 1,070,612 I 219,958 68,164 9,524 78,248 1,446,506 3. List previous five years records for water loss (the difference between water diverted(or treated)and water delivered(sold)). Data is calculated in Appendix D on tab"D-4". TWDB requires that the data for this entry be reported in gallons. YearAmount(gal.)', 2004 195,610,000 15.34 2005 135,702,0001 8.48 2006 141,760,000 8.67 2007 185,266,000 13.66 2008 70,247,000 4.46 C-3 4. Municipal water use for previous five years: Total Diverted (or Treated) Year Population (1,000 gal) 2004 27,093 22,573 2005 31,710 , 40,480 2006 33,441 19,083 2007 34,833 18,126 _ 2008 35,280 24,530 B. Projected Water Demands If applicable,attach projected water supply demands for the next ten years using information such as population trends,historical water use,and economic growth in the service area over the next ten years and any additional water supply requirement from such growth. Projected Demand(Ac- Year Ft) Source of data Additional Water Supply Requirements 2010 7,191 NTMWD 2015 8,356 1— NTMWD 2020 9,521 NTMWD 2025 10,283 NTMWD 2030 10,720 NTMWD 2035 11,157 NTMWD Ill. WATER SUPPLY SYSTEM DATA A. Water Supply Sources List all current water supply sources and the amounts authorized with each: Type Source Amount Available(AF/Y) Surface Water Groundwater Contracts North Texas Municipal Water District(SW) 5283.9 Other C-4 B. Treatment and Distribution System 1. Design daily capacity of system: 9.3 MGD 2. Storage capacity: Elevated MG Ground 3.1 MG 3. if surface water,do you recycle filter backwash to the head of the plant? Yes No . If yes,approximately MGD. 4. Please attach a description of the water system. Include the number of treatment plants,wells,and storage tanks. If possible,include a sketch of the system layout. IV. WASTEWATER SYSTEM DATA A. Wastewater System Data 1. Design capacity of wastewater treatment plant(s): 12 MGD 2. Is treated effluent used for irrigation on-site x ,off-siie_,plant washdown x ,or • chlorination/dechlorination x ? If yes,approximately_gallons per month. (Not metered) 3. Briefly describe the wastewater system(s)of the area serviced by the water utility. Describe how treated wastewater is disposed of. Where applicable,identify treatment plant(s)with the TCEQ name and number,the operator,owner,and,if wastewater is discharged,the receiving stream. Please provide a sketch or map which located the plant(s)and discharge or disposal sites.: _ Treatment Plant Name TCEQ Number Operator Owner Receiving Stream j Wylie Treatment Plant 1 WQ0010384001 See Comments NTMWD Muddy Creek Muddy Creek Treatment Plant nWQ0014216001 See Comments NTMWD Muddy Creek C-5 B. Wastewater Data for Service Area 1. Percent of water service area served by wastewater system: 99 2. Monthly wastewater volume for previous three years(in 1,000 gallons): Year 2006 2007 2008 January 130 193 135 February 133 119 134 March 160 145_ 211 April 119 138 149 May 123 152 137 June 97' 199 125 July 1021 182 125 August 108 132 133 September 107 135 128 October 127 135 124 November 1,001 119 132 December 140 137 136 Total _ 2,347 1,784 1,6701 C-6 Appendix Cl Definitions of Commonly Used Terms Conservation-Those practices,techniques,and technologies that reduce the consumption of water, reduce the loss or waste of water,improve the efficiency in the use of water,or increase the recycling and reuse of water so that a water supply is made available for future or alternative uses. Industrial use - The use of water in processes designed to convert materials of a lower order of value into forms having greater usability and commercial value,commercial fish production,and the development of power by means other than hydroelectric,but does not include agricultural use. Irrigation - The agricultural use of water for the irrigation of crops, trees, and pastureland, including,but not limited to,golf courses and parks which do not receive water through a municipal distribution system. Municipal per capita water use-The sum total of water diverted into a water supply system for residential, commercial, and public and institutional uses divided by actual population served. Municipal use-The use of potable water within or outside a municipality and its environs whether supplied by a person,privately owned utility,political subdivision,or other entity as well as the use of sewage effluent for certain purposes, including the use of treated water for domestic purposes, fighting fires, sprinkling streets, flushing sewers and drains, watering parks and parkways, and recreational purposes, including public and private swimming pools, the use of potable water in industrial and commercial enterprises supplied by a municipal distribution system without special construction to meet its demands, and for the watering of lawns and family gardens. Municipal use in gallons per capita per day-The total average daily amount of water diverted or pumped for treatment for potable use by a public water supply system. The calculation is made by dividing the water diverted or pumped for treatment for potable use by population served. Indirect reuse volumes shall be credited against total diversion volumes for the purpose of calculating gallons per capita per day for targets and goals. Pollution - The alteration of the physical, thermal, chemical, or biological quality of, or the contamination of, any water in the state that renders the water harmful,detrimental, or injurious to humans,animal life,vegetation,or property,or to the public health,safety,or welfare,or impairs the usefulness or the public enjoyment of the water for any lawful or reasonable purpose. Public water supplier - An individual or entity that supplies water to the public for human consumption. Regional water planning group-A group established by the Texas Water Development Board to prepare a regional water plan under Texas Water Code, ' 16.053. Retail public water supplier-An individual or entity that for compensation supplies water to the C1-1 public for human consumption. The term does not include an individual or entity that supplies water to itself or its employees or tenants when that water is not resold to or used by others. Reuse - The authorized use for one or more beneficial purposes of use of water that remains unconsumed after the water is used for the original purpose of use and before that water is either disposed of or discharged or otherwise allowed to flow into a watercourse, lake, or other body of state-owned water. Water conservation plan-A strategy or combination of strategies for reducing the volume of water withdrawn from a water supply source, for reducing the loss or waste of water, for maintaining or improving the efficiency in the use of water,for increasing the recycling and reuse of water,and for preventing the pollution of water. A water conservation plan may be a separate document identified as such or may be contained within another water management document(s). Water loss-The difference between water diverted or treated and water delivered(sold).Water loss can result from: 1. inaccurate or incomplete record keeping; 2. meter error; 3. unmetered uses such as firefighting, line flushing, and water for public buildings and water treatment plants; 4. leaks; and 5. water theft and unauthorized use. Wholesale public water supplier-An individual or entity that for compensation supplies water to another for resale to the public for human consumption. The term does not include an individual or entity that supplies water to itself or its employees or tenants as an incident of that employee service or tenancy when that water is not resold to or used by others,or an individual or entity that conveys water to another individual or entity, but does not own the right to the water which is conveyed, whether or not for a delivery fee. If you have any questions on how to fill out this form or about the program, please contact us at 512/239- Individuals are entitled to request and review their personal information that the agency gathers on its forms. They may also have any errors in their information corrected. To review such information, contact us at 512-239-3282. C1-2 APPENDIX D NTMWD MEMBER CITY AND CUSTOMER ANNUAL WATER CONSERVATION REPORT APPENDLX D NTMWD MEMBER CITY AND CUSTOMER WAFER CONSERVATION REPOR'I Due:March 31 of every year Entity Reporting: City of Wylie Filled Out By: Albert Garza Date Completed: 3/26/2009 Year Covered: 2008 #of Connections 11,760 Recorded Deliveries and Sales by Month(in Million Gallons): Deliveries Other Sales by Category Month from Public/ Supplies Residential Commercial Ins tutional Industrial Bulk Water Total NTMWD ti January 104.353 52.995 10.888 3.873 3.374 0.706 71.835 February 94.476 49.053 10,078 3.585 3.123 0.118 65.957 March 111.625 60,364 12.402 4.412 3.843 0.448 81.464 April 117.428 63.931 13.135 4.673 4.070 0.072 135.881 May 155.993 95.323 19.584 6.967 6.069 0.020 127.963 June 112.669 103.665 21.298 7.577 6.600 0.355 139.495 July 212.770 177.640 36.496 12.983 11.310 2.879 241.308 August 196.442 136.527 28.050 9.978 8.692 1.781 185.028 September 143.573 109.031 22.400 7.969 6.942 0.000 146.342 October 146.553 91.258 18.749 6.670 5.810 1.716 124.203 November 88.932 63.876 13.123 4.669 4.067 0.033_ .8-5.767 December 88.879 66.949 13.755 4.893 4.263 1.397 91.257 TOTAL 1,573.693 0.000 1,070.611 219.957 78.248 68.163 9.523 1,446.503 Unaccounted Water(Million Gallons): NTMWD Deliveries 1,573.693 from Table above Other Supplies 0.000 from Table above Total Supplies 1,573.693 from Table above Total Sales 1,446.503 from Table above Estimated Fire Use 0.059 estimated from best available data Estimated Line Flushing Use 56.882 estimated from best available data Unaccounted Water 70.249 %Unaccounted 4.46% Goal for%Unaccounted 12.00% D-1 Per Capita Municipal Use(Gallons per person per day) Municipal Use(MG) 1,496.006 from Table above(NTMWD deliveries+other supplies-industrial sales-municipal sales-other sales) Estimated Population 35,280 please describe source of population estimate Reference RG-195 Rules and Regulations for Pubic Per Capita Use(gpcd) 116 Water Systems 290.38(10). Population was 5-year Per Capita Goal(119) determined by multipling the number of service 10-year Per Capita Goal(119) connection by three.Service connections in an apartment complex would be equal the number of Recorded Wholesale Sales by Month(in Million Gallons): indivival apartment units. Sales to Sales to Sales to Sales to Sales to Sales to Sales to Total Wholesale Month Sales January 0.000 February 0.000 March 0.000 Aeril 0.000 May 0.000 June 0.000 July 0.000 Au_grust 0.000 September 0.000 October 0.000 November 0.000 December 0.000 TOTAL 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Information on Wholesale Customers: Estimated Customer Population D-2 Unusual Circumstances(use additional sheets if necessari): On June 6,2008 the City of Wylie and North Texas Municipal Water District(NTMWD)representatives met at Nortex and Newport Harbor pump stations to conduct a volumetric test. Upon completion of the test at both pump stations,it was determined that NTMWD meters were out of calibration accuracy of more than±2%,Nortcx pump station was at plus 30%and Newport Harbor at plus 10%out of calibration. On July 29,2008 the City of Wylie also had ADS Environmental Services conducted a Pitometer test for accuracy on the venturi meter at Wylie-1,the results of the Pitometer test showed the meter to be over-registering by 9%. Progress in Implementation of Conservation Plan(use additional sheets if necessary): The City of Wylie is currently keeping track of all unmetcred water through out the City by monitoring the following:Firefighting,Dead End Main Flushing,Street Cleaning,Water Main Breaks and Sewer Cleaning. Conservation Plan is scheduled for Council approval on 4-14-09 Conservation measures planned for next year(use additional sheets if necessary): Public education by posting information on City website,insert in utility bill,and local news letter.Staff will educate the public as needed when wasteful practices are observed,Enforcement if necessary. D-3 Assistance requested from North Texas Municipal Water District(use additional sheets if necessary): Please continue to fund the Water IQ program. Other(use additional sheets if necessary): D-4 Historical Water Use Data for The City of Wylie r Deliveries Metered Sales by Ca •!ory(Million Gallons) 1 Other Estimated from Year Connections Supplies Public/ Population NTMWD Residential Conunerei• Institutional Industrial Wholesale Bulk Sale Total (MG) (MG) 1990 1991 0.1111 1992 Ilirm 1993 OM. 11 0.011 0.000 11999945MM 19961111 1,...... 0:0001:.:„ 1997 EIMIMI 0.0111 1998 0.111 1999 0.000 2000 0.111, 2001 0.001 2002= MIMME1 Oil, 2003 0.0 i i 2004 9,031 27,093 1,274.770 762.929 210.160 42.634 59.325 3.138 1,078.185 2005 10,570 31,710 1,600.599 971.934 262.507 73.127 87.029 28.178 1,422.774 2006 11,052 33,156 1,635.609 MIN 1,019.082 198.426 57.231 118.468 34.293 1,427.51 1 2007 11,147 33,441 1,356.306 82[379 165.679 54.790 83.438 9.785 1,135.071 2008 11,760 35,280 1,573.693 1,070.612 219.958 78.248 68.164 9.523 1,446.505 2009 =MI 0.0011 2010 IIII=MIIMIll .1= 0.0111 D-5 Historical Per Capita Use Data and Unaccounted Water for The City of Wylie ,m. . In-City Per Capita Deliveries Estimated Other Total Estimated Unaccounted Estimated Municipal Municipal from Line % Year Supplies Metered Fire Use Water Population Use Use NTMWD Flushing Unaccounted (MG) (gpcd) (MG) (MG) Sales (MG) (MG) (MG) (MG) 1990 0.000 #DIV/0! 0.000 0.000 0.000 0.000 #DIV/0! 1991 0.000 #DIV/0! 0.000 0.000 0.000 0.000 #DIV/0! 1992 0.000 #DIV/0! 0.000 0.000 0.000 0.000 #DIV/0! 1993 0.000 #DIV/0! 0.000 0.000 0.000 0.000 #D1V/0! 1994 _ 0.000 #DIV/0! 0.000 0.000 0.000 0.000 #DIV/0! 1995 0.000 #DIV/0! 0.000 0.000 0.000 0.000 #DIV/0! 1996 0.000 #DIV/0! 0.000 0.000 0.000 0.000 #DIV/0! 1997 0.000 #DIV/0! 0.000 0.000 0.000 0.000 #DIV/0! 1998 0.000 #DIV/0! 0.000 0.000 0.000 0.000 #DIV/0! 1999 0.000 #DIV/0! 0.000 0.000 0.000 0.000 #DIV/0! 2000 0.000 #DIV/0! 0.000 0.000 0.000 0.000 #DIV/0! 2001 0.000 #DIV/0! 0.000 0.000 0.000 0.000 #DIV/0! 2002 0.000 #DIV/0! 0.000 0.000 0.000 0.000 #DIV/0! 2003 0.000 #DIV/0! 0.000 0.000 0.000, 0.000 #DIV/0! 2004 27,093 1,212.307 123 1,274.770 0.000 1,078.185 0.975 195.610 15.34% 2005 31,710 1,485.393 128 1,600.599 0.000 1,422.774 13.950 28.173 135.702 8.48% 2006 33,156 1,482.848 123 1,635.609 0.000 1,427.500 0.039 66.310 141.760 8.67% 2007 33,141 1,263.083 104 1,356.306 0.000 1,135.071 0.033 35.936 185.266 13.66% 2008 35,280 1,496.006 116 1,573.693 0.000 1,446.505 0.059 56.882 70.247 4.46% 2009 0.000 #DIV/0! 0.000 0.000 0.000 0.000 #DIV/0! 2010 0.000 #DIV/0! 0.000 0.000_, 0.000 0.000 #DIV/0! -- Note: In-city municipal use=total water supplied less sales to industry, wholesale sales and other sales. D-6 Estimated Population til C co) .C) Vi t C o .c, (§) § 8 § 8 § c, 0 i 1990 1991 1992 1 1993 1994 1995 _ Intl 1996 a - S Do 1997 1998 .4. rs) t-J e 41 1999 "foie fl flo 2000 *0 .1 0 , lz 2001 = 1.0. 2002 ::$c) 2003 2004 ' 2005 2006 ,immini. 2007 0 i 2008 2009 i 4 2010 , £ ,, - Historical Water Use in Million Gallons 00 '00 0 C> 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 pI etato 2000 cc 2001 • 1:14 2002 2003 et) 2004 2005 2006 H 2007 111MillIMMIE 2008 n 2009 2010 111 tin IA 0 1.21- 1::;1 . . Historical Water Sales by Classification I,600.000 - I,400.000 I II 0 = 1,200.000 es C., U Other Sales = 4:I 1 1,000.000 • 0 U Wholesale Sales .E U Industrial Sales v.1 410 800.000 et u) El Public/Institutional ii. 4p... Sales cis 600.000 .. _ i Commercial Sales Ts eiso 400 000 UResidential Sales _ . „_ . .4.4 4ft 0:1 200.000 - — 0.000 i 1 . I , i I . . 1 i , . i . . o — (-4 In -1- kn r--- oo cp, § . (...,) rn ‘4.- kil \c) 08 o s c, ON 0' ON ON ON CN ON ON ON ON 0 0 0 8 8 8 ON ON ON ON ON ON ON ON ON 0' 0. 0 0 0 C 0 0 ""1 sr-4 ‘—'4 ,--4 1-4 ,."''' ‘'''S T-1 ,—, ,--, c\1 (\I el r cN1 C4 C-4 C,1 Cl r4 (NI Year D-9 Per Capita Municipal Use in GPCD 0 0 0 0 0 0 0 0 1990 1991 1992 1993 1994 1995 F k 5 1996E CD of 1997 1998 et n Dil 9 1999 "'C aiu: 200° 4 in , 1: E. 2001 2. Piz 2002 i451 2003 2004 2005 2006 2007 11111111 2008 2009 ' k 2010 Percent of Water Unaccounted 00 00 1990 1991 1992 1993 1994 1995 1996 1997 4:1 1998 '1 ti) 5:7 1999 2000 2001 2002 ft 2003 2004 2005 2006 II I= 2007 2008 2009 2010 APPENDIX E CONSIDERATIONS FOR LANDSCAPE WATER MANAGEMENT REGULATIONS APPENDIX E Considerations for Landscape Water Management Regulations A. Purpose The purpose of these proposed landscape water management regulations is to provide a consistent mechanism for preventing the waste of water resources. To enact these provisions, entities must verify legal authority to adopt such provisions, and must promulgate valid rules, orders,or ordinances. B. Required Measures The following landscape water conservation measures are required to be included in the landscape management regulations adopted and enforced in this plan. 1. Lawn and Landscape Irrigation Restrictions a. A person commits an offense if the person irrigates, waters, or knowingly or recklessly causes or allows the irrigation or watering of any lawn or landscape located on any property owned, leased, or managed by the person between the hours of 10:00 a.m. and 6:00 p.m. from April 1 through October 31 of any year. b. A person commits an offense if the person knowingly or recklessly irrigates, waters, or causes or allows the irrigation or watering of lawn or landscape located on any property owned, leased, or managed by that person in such a manner that causes: i. over-watering lawn or landscape, such that a constant stream of water overflows from the lawn or landscape onto a street or other drainage area; or ii. irrigating lawn or landscape during any form of precipitation or freezing conditions. This restriction applies to all forms of irrigation, including automatic sprinkler systems; or iii. the irrigation of impervious surfaces or other non-irrigated areas, wind driven water drift taken into consideration. c. A person commits an offense if the person knowingly or recklessly allows the irrigation or watering of any lawn or landscape located on any property owned, leased, or managed by the person more than two times per week (Sunday through Saturday). 2. Rain and Freeze Sensors and/or ET or Smart Controllers a. Any new irrigation system installed on or after May 1, 2009, must be equipped with rain and freeze sensing devices and/or ET or Smart controllers in compliance with state design and installation regulations. b. A person commits an offense on property owned, leased or managed if the person: E-1 i. knowingly or recklessly installs or allows the installation of new irrigation systems in violation of Subsection B.2.a; or ii. knowingly or recklessly operates or allows the operation of an irrigation system that does not comply with Subsection B.2.a. 3. Filling or Refilling of Ponds a. A person commits an offense if the person knowingly or recklessly fills or refills any natural or manmade pond located on any property owned, leased, or managed by the person by introducing any treated water to fill or refill the pond. This does not restrict the filling or maintenance of pond levels by the effect of natural water runoff or the introduction of well water into the pond. A pond is considered to be a still body of water with a surface area of 500 square feet or more. 4. Washing of Vehicles a. A person commits an offense if the person knowingly or recklessly washes a vehicle without using a water hose with a shut-off nozzle on any property owned, leased, or managed by the person. 5. Enforcement a. Each entity will develop its own set of penalties for violations of the ordinance, order, or resolution. The ordinance, order, or resolution will designate the responsible official(s) to implement and enforce the landscape water conservation measures. C. Recommended Measures 1. Lawn and Landscape Irrigation Restrictions a. A person commits an offense if the person knowingly or recklessly operates a lawn or irrigation system or device on property that the person owns, leases, or manages that: i. has broken or missing sprinkler head(s); or ii. has not been properly maintained to prevent the waste of water. b. All new athletic fields must have separate irrigation systems that are capable of irrigating the playing fields separately from other open spaces. 2. Rain and Freeze Sensors a. Existing irrigation systems must be retrofitted with similar rain and freeze sensors capable of multiprogramming within 5 years. D. Variances 1. In special cases, variances may be granted to persons demonstrating extreme hardship or need. Variances may be granted under the following circumstances: E-2 a. the applicant must sign a compliance agreement agreeing to irrigate or water the lawn and/or landscape only in the amount and manner permitted by the variance; and b. the variance must not cause an immediate significant reduction to the water supply; and c. the extreme hardship or need requiring the variance must relate to the health, safety,or welfare of the person making the request; and d. the health, safety, and welfare of the public and the person making the request must not be adversely affected by the requested variance. 2. A variance will be revoked upon a finding that: a. the applicant can no longer demonstrate extreme hardship or need; or b. the terms of the compliance agreement are violated; or c. the health, safety, or welfare of the public or other persons requires revocation. E-3 APPENDIX F LETTERS TO REGION C AND REGION D WATER PLANNING GROUPS APPENDIX F Letters to Region C and Region D Water Planning Groups Date Region C Water Planning Group North Texas Municipal Water District P.O. Box 2408 Wylie,TX 75098 Dear Sir: Enclosed please find a copy of the recently updated Model Water Conservation Plan for the Member Cities and Customers of the North Texas Municipal Water District I am submitting a copy of this model plan to the Region C Water Planning Group in accordance with the Texas Water Development Board and Texas Commission on Environmental Quality rules. The Board of the North Texas Municipal Water District adopted the updated model plan on 2008. Sincerely, Jim Parks North Texas Municipal Water District F-1 Date Mr. Jim Thompson Chair,Region D Water Planning Group P.O. Box 1107 Atlanta, TX 75551 Dear Mr. Thompson: Enclosed please find a copy of the recently updated Model Water Conservation Plan for the Member Cities and Customers of the North Texas Municipal Water District. I am submitting a copy of this model plan to the Region D Water Planning Group in accordance with the Texas Water Development Board and Texas Commission on Environmental Quality rules. The Board of the North Texas Municipal Water District adopted the updated model plan on , 2008. Sincerely, Jim Parks Executive Director North Texas Municipal Water District F-2 APPENDIX G ADOPTION OF WATER CONSERVATION PLAN APPENDIX G Adoption of Water Conservation Plan Municipal Ordinance Adopting Water Conservation Plan Ordinance No. AN ORDINANCE ADOPTING A WATER CONSERVATION PLAN FOR THE CITY OF TO PROMOTE RESPONSIBLE USE OF WATER AND TO PROVIDE FOR PENALTIES AND/OR THK DISCONNECTION OF WATER SERVICE FOR NONCOMPLIANCE WITH THE PROVISIONS OF THE WATER CONSERVATION PLAN. WHEREAS, the City of , Texas (the "City"), recognizes that the amount of water available to its water customers is limited; and WHEREAS, the City recognizes that due to natural limitations, drought conditions, system failures and other acts of God which may occur, the City cannot guarantee an uninterrupted water supply for all purposes at all times; and WHEREAS, the Water Code and the regulations of the Texas Commission on Environmental Quality (the "Commission") require that the City adopt a Water Conservation Plan; and WHEREAS, the City has determined an urgent need in the best interest of the public to adopt a Water Conservation Plan; and WHEREAS, pursuant to Chapter 54 of the Local Government Code, the City is authorized to adopt such Ordinances necessary to preserve and conserve its water resources; and WHEREAS, the City Council of the City of desires to adopt the North Texas Municipal Water District (the "NTMWD") Model Water Conservation Plan as official City policy for the conservation of water. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THAT: Section 1. The City Council hereby approves and adopts the NTMWD Model Water Conservation Plan (the "Plan"), attached hereto as Addendum A, as if recited verbatim herein. The City commits to implement the requirements and procedures set forth in the adopted Plan. G-1 Section 2. Any customer, defined pursuant to 30 Tex. Admin. Code Chapter 291, failing to comply with the provisions of the Plan shall be subject to a fine of up to two thousand dollars ($2,000.00) and/or discontinuance of water service by the City. Proof of a culpable mental state is not required for a conviction of an offense under this section. Each day a customer fails to comply with the Plan is a separate violation. The City's authority to seek injunctive or other civil relief available under the law is not limited by this section. Section 3. The City Council does hereby find and declare that sufficient written notice of the date, hour, place and subject of the meeting adopting this Ordinance was posted at a designated place convenient to the public for the time required by law preceding the meeting, that such place of posting was readily accessible at all times to the general public, and that all of the foregoing was done as required by law at all times during which this Ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the posting thereof. Section 4. Should any paragraph, sentence, clause, phrase or word of this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this Ordinance shall not be affected. Section 5. The City Manager or his designee is hereby directed to file a copy of the Plan and this Ordinance with the Commission in accordance with Title 30, Chapter 288 of the Texas Administrative Code. Section 6. The City Secretary is hereby authorized and directed to cause publication of the descriptive caption of this ordinance as an alternative method of publication provided by law. Section 7. (If Applicable} Ordinance No. , adopted on , is hereby repealed. Passed by the City Council on this day of Mayor Attest: City Secretary G-2 Municipal Utility District Order Adopting Water Conservation Plan Order No. AN ORDER ADOPTING A WATER CONSERVATION PLAN FOR THE MUNICIPAL UTILITY DISTRICT TO PROMOTE THE RESPONSIBLE USE OF WATER AND TO PROVIDE FOR PENALTIES AND/OR THE DISCONNECTION OF WATER SERVICE FOR NONCOMPLIANCE WITH THE PROVISIONS OF THE WATER CONSERVATION PLAN. WHEREAS,the Municipal Utility District(the"District"), recognizes that the amount of water available to its water customers is limited; and WHEREAS, the District recognizes that due to natural limitations, drought conditions, system failures and other acts of God which may occur, the District cannot guarantee an uninterrupted water supply for all purposes at all times; and WHEREAS, the Water Code and the regulations of the Texas Commission on Environmental Quality (the "Commission") require that the District adopt a Water Conservation Plan; and WHEREAS, the District has determined an urgent need in the best interest of the public to adopt a Water Conservation Plan; and WHEREAS, pursuant to Chapter 49 of the Water Code, the District is authorized to adopt such policies necessary to accomplish the purposes for which it was created, including but not limited to the preservation and conservation of water resources; and WHEREAS, the Board of Directors of the District desires to adopt the North Texas Municipal Water District (the "NTMWD") Model Water Conservation Plan as official District policy for the conservation of water. NOW THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF THE MUNICIPAL UTILITY DISTRICT THAT: Section 1. The Board of Directors hereby approves and adopts the NTMWD Model Water Conservation Plan (the "Plan"), attached hereto as Addendum A, as if recited verbatim herein. The District commits to implement the requirements and procedures set forth in the adopted Plan. Section 2. Any customer, defined pursuant to 30 Tex. Admin. Code Chapter 291, failing to comply with the provisions of the Plan shall be subject to a monetary fine as allowed by law, and/or discontinuance of water service by the District. Proof of a culpable mental G-3 state is not required for a conviction of an offense under this section. Each day a customer fails to comply with the Plan is a separate violation. The District's authority to seek injunctive or other civil relief available under the law is not limited by this section. Section 3. The Board of Directors does hereby find and declare that sufficient written notice of the date, hour, place and subject of the meeting adopting this Order was posted at a designated place convenient to the public for the time required by law preceding the meeting, that such place of posting was readily accessible at all times to the general public, and that all of the foregoing was done as required by law at all times during which this Order and the subject matter thereof has been discussed, considered and formally acted upon. The Board of Directors further ratifies, approves and confirms such written notice and the posting thereof. Section 4. The General Manager or his designee is hereby directed to file a copy of the Plan and this Ordinance with the Commission in accordance with Title 30, Chapter 288 of the Texas Administrative Code. Section 5. Should any paragraph, sentence, clause, phrase or word of this Order be declared unconstitutional or invalid for any reason, the remainder of this Order shall not be affected. Section 6. {If Applicable} Order No. , adopted on , is hereby repealed. Approved and adopted by the Board of Directors on this day of President, Board of Directors Attest: Secretary G-4 Special Utility District Order Adopting Water Conservation Plan Order No. AN ORDER ADOPTING A WATER CONSERVATION PLAN FOR THE SPECIAL UTILITY DISTRICT TO PROMOTE THE RESPONSIBLE USE OF WATER AND TO PROVIDE FOR PENALTIES AND/OR THE DISCONNECTION OF WATER SERVICE FOR NONCOMPLIANCE WITH THE PROVISIONS OF THE WATER CONSERVATION PLAN. WHEREAS, the Special Utility District (the "District"), recognizes that the amount of water available to its water customers is limited; and WHEREAS, the District recognizes that due to natural limitations, drought conditions, system failures and other acts of God which may occur, the District cannot guarantee an uninterrupted water supply for all purposes at all times; and WHtREAS, the Water Code and the regulations of the Texas Commission on Environmental Quality (the "Commission") require that the District adopt a Water Conservation Plan; and WHEREAS, the District has determined an urgent need in the best interest of the public to adopt a Water Conservation Plan; and WHEREAS, pursuant to Chapter 65 of the Water Code, the District is authorized to adopt such policies necessary to accomplish the purposes for which it was created, including but not limited to the preservation and conservation of water resources; and WHEREAS, the Board of Directors of the District desires to adopt the North Texas Municipal Water District (the "NTMWD") Model Water Conservation Plan as official District policy for the conservation of water. NOW THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF THE SPECIAL UTILITY DISTRICT THAT: Section 1. The Board of Directors hereby approves and adopts the NTMWD Model Water Conservation Plan (the "Plan"), attached hereto as Addendum A, as if recited verbatim herein. The District commits to implement the requirements and procedures set forth in the adopted Plan. Section 2. Any customer, defined pursuant to 30 Tex. Admin. Code Chapter 291, failing to comply with the provisions of the Plan shall be subject to a monetary fine as allowed by law, and/or discontinuance of water service by the District. Proof of a culpable mental state is not required for a conviction of an offense under this section. Each day a G-5 customer fails to comply with the Plan is a separate violation. The District's authority to seek injunctive or other civil relief available under the law is not limited by this section. Section 3. The Board of Directors does hereby find and declare that sufficient written notice of the date, hour, place and subject of the meeting adopting this Order was posted at a designated place convenient to the public for the time required by law preceding the meeting, that such place of posting was readily accessible at all times to the general public, and that all of the foregoing was done as required by law at all times during which this Order and the subject matter thereof has been discussed, considered and formally acted upon. The Board of Directors further ratifies, approves and confirms such written notice and the posting thereof. Section 4. The General Manager or his designee is hereby directed to file a copy of the Plan and this Ordinance with the Commission in accordance with Title 30, Chapter 288 of the Texas Administrative Code. Section 5. Should any paragraph, sentence, clause, phrase or word of this Order be declared unconstitutional or invalid for any reason, the remainder of this Order shall not be affected. Section 6. {If Applicable) Order No. , adopted on , is hereby repealed. Approved and adopted by the Board of Directors on this day of President, Board of Directors Attest: Secretary G-6 Water Supply Corporation Resolution Adopting Water Conservation Plan Resolution No. A RESOLUTION ADOPTING A WATER CONSERVATION PLAN FOR THE WATER SUPPLY CORPORATION TO PROMOTE THE RESPONSIBLE USE OF WATER AND TO PROVIDE FOR PENALTIES AND/OR THE DISCONNECTION OF WATER SERVICE FOR NONCOMPLIANCE WITH THE PROVISIONS OF THE WATER CONSERVATION PLAN. WHEREAS, the Water Supply Corporation (the "WSC"), recognizes that the amount of water available to its water customers is limited; and WHEREAS, the WSC recognizes that due to natural limitations, drought conditions, system failures and other acts of God which may occur, the WSC cannot guarantee an uninterrupted water supply for all purposes at all times; and WHEREAS, the Water Code and the regulations of the Texas Commission on Environmental Quality (the "Commission") require that the WSC adopt a Water Conservation Plan; and WHEREAS, the WSC has determined an urgent need in the best interest of the public to adopt a Water Conservation Plan; and WHEREAS, pursuant to Chapter 67 of the Water Code, the WSC is authorized to adopt such policies necessary to preserve and conserve its water resources; and WHEREAS, the Board of Directors of the WSC desires to adopt the North Texas Municipal Water District (the "NTMWD") Model Water Conservation Plan as official WSC policy for the conservation of water. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE WATER SUPPLY CORPORATION THAT: Section 1. The Board of Directors hereby approves and adopts the NTMWD Model Water Conservation Plan (the "Plan"), attached hereto as Addendum A, as if recited verbatim herein. The WSC commits to implement the requirements and procedures set forth in the adopted Plan. Section 2. Any customer, defined pursuant to 30 Tex. Admin. Code Chapter 291, failing to comply with the provisions of the Plan shall be subject to a monetary fine as allowed by law, and/or discontinuance of water service by the WSC. Proof of a culpable mental state is not required for a conviction of an offense under this section. Each day a G-7 customer fails to comply with the Plan is a separate violation. The WSC's authority to seek injunctive or other civil relief available under the law is not limited by this section. Section 3. The Board of Directors does hereby find and declare that sufficient written notice of the date, hour, place and subject of the meeting adopting this Resolution was posted at a designated place convenient to the public for the time required by law preceding the meeting, that such place of posting was readily accessible at all times to the general public, and that all of the foregoing was done as required by law at all times during which this Resolution and the subject matter thereof has been discussed, considered and formally acted upon. The Board of Directors further ratifies, approves and confirms such written notice and the posting thereof. Section 4. The General Manager or his designee is hereby directed to file a copy of the Plan and this Ordinance with the Commission in accordance with Title 30, Chapter 288 of the Texas Administrative Code. Further, the Board of Directors hereby authorizes the General Manager or his designee to file an amendment to the WSC's tariff to incorporate the Plan therein. Section 5. Should any paragraph, sentence, clause, phrase or word of this Resolution be declared unconstitutional or invalid for any reason, the remainder of this Resolution shall not be affected. Section 6. {If Applicable} Resolution No. , adopted on , is hereby repealed. Approved and adopted by the on this day of President, Board of Directors Attest: Secretary G-8 APPENDIX H ILLEGAL WATER CONNECTIONS AND THEY!' OF WATER APPENDIX H Illegal Water Connections and Theft of Water Municipal Ordinance Pertaining to Illegal Water Connections and Theft of Water Ordinance No. AN ORDINANCE PERTAINING TO ILLEGAL WATER CONNECTIONS AND/OR THE THEFT OF WATER RELATED TO THE WATER SUPPLY FOR THE CITY OF WHEREAS, the City of , Texas (the "City") recognizes that the amount of water available to its water customers is limited; and WHEREAS, pursuant to Chapter 54 of the Local Government Code, the City is authorized to adopt such policies necessary to preserve and conserve available water supplies; and WHEREAS, the City seeks to adopt an ordinance pertaining to illegal water connections and theft of water. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THAT: Section 1. The City Council hereby approves and adopts this Ordinance as described herein. Section 2. A person commits an offense of theft of water by any of the following actions: (a) A person may not knowingly tamper, connect to, or alter any component of the City's water system including valves, meters, meter boxes, lids, hydrants, lines, pump stations, ground storage tanks, and elevated storage tanks. This shall include direct or indirect efforts to initiate or restore water service without the approval of the City. (b) if, without the written consent of the City Manager or the City Manager's designee, the person knowingly causes, suffers or allows the initiation or restoration of water service to the property after termination of service(s). For purposes of this section, it shall be assumed that the owner, occupant, or person in control of the property caused, suffered, or allowed the unlawful initiation or restoration of service(s). H-1 (c) A person may not knowingly make or cause a false report to be made to the City of a reading of a water meter installed for metered billing. (d) A person commits a separate offense each day that the person performs an act prohibited by this section or fails to perform an act required by this section. Section 3. An offense under this Ordinance is a Class C misdemeanor punishable by a fine of up to two thousand dollars ($2,000.00) and/or discontinuance of water service by the City. Section 4. The City Council does hereby find and declare that sufficient written notice of the date, hour, place and subject of the meeting considering this Ordinance was posted at a designated place convenient to the public for the time required by law preceding the meeting, that such place of posting was readily accessible at all times to the general public, and that all of the foregoing was done as required by law at all times during which this Ordinance, and the subject matter thereof, has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the posting thereof. Section 5. Should any paragraph, sentence, clause, phrase or word of this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this Ordinance shall not be affected. Section 6. The City Secretary is hereby authorized and directed to cause publication of the descriptive caption of this ordinance as an alternative method of publication provided by law. Section 7. {If Applicable) Ordinance No. , adopted on , is hereby repealed. Passed by the City Council on this day of Mayor Attest: City Secretary H-2 Municipal Utility District Order Pertaining to Illegal Water Connections and Theft of Water Order No. AN ORDER PERTAINING TO ILLEGAL WATER CONNECTIONS AND/OR THE THEFT OF WATER RELATED TO THE WATER SUPPLY FOR THE MUNICIPAL UTILITY DISTRICT. WHEREAS, the Municipal Utility District (the "District"), recognizes that the amount of water available to its water customers is limited; and WHEREAS, pursuant to Chapter 49 of the Water Code, the District is authorized to adopt such policies necessary to accomplish the purposes for which it was created, including but not limited to the preservation and conservation of available water supplies; and WHEREAS, the District seeks to adopt an order pertaining to illegal water connections and theft of water. NOW THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF THE MUNICIPAL UTILITY DISTRICT THAT: Section 1. The Board of Directors hereby approves and adopts this Order as described herein. Section 2. A person commits an offense of theft of water by any of the following actions: (a) A person may not knowingly tamper, connect to, or alter any component of the District's water system including valves, meters, meter boxes, lids, hydrants, lines, pump stations, ground storage tanks, and elevated storage tanks. This shall include direct or indirect efforts to initiate or restore water service without the approval of the District. (b) If, without the written consent of the District, the person knowingly causes, suffers or allows the initiation or restoration of water service to the property after termination of service(s). For purposes of this section, it shall be assumed that the owner, occupant, or person in control of the property caused, suffered, or allowed the unlawful initiation or restoration of service(s). (c) A person may not knowingly make or cause a false report to be made to the District of a reading of a water meter installed for metered billing. (d) A person commits a separate offense each day that the person performs an act prohibited by this section or fails to perform an act required by this section. H-3 Section 3. An offense under this Order is punishable in accordance with the District's rules and policies regarding rates and may result in disconnection of service. Section 4. The Board of Directors does hereby find and declare that sufficient written notice of the date, hour, place and subject of the meeting considering this Order was posted at a designated place convenient to the public for the time required by law preceding this meeting, that such place of posting was readily accessible at all times to the general public, and that all of the foregoing was done as required by law at all times during which this Order, and the subject matter thereof has been discussed, considered and formally acted upon. The Board of Directors further ratifies, approves and confirms such written notice and the posting thereof. Section 5. Should any paragraph, sentence, clause, phrase or word of this Order be declared unconstitutional or invalid for any reason, the remainder of this Order shall not be affected. Section 6. {If Applicable) Order No. , adopted on , is hereby repealed. Approved and adopted by the Board of Directors on this day of President, Board of Directors Attest: Secretary H-4 Special Utility District Order Pertaining to Illegal Water Connections and Theft of Water Order No. AN ORDER PERTAINING TO ILLEGAL WATER CONNECTIONS AND/OR THE THEFT OF WATER RELATED TO THE WATER SUPPLY FOR THE SPECIAL UTILITY DISTRICT. WHEREAS, the Special Utility District (the "District"), recognizes that the amount of water available to its water customers is limited; and WHEREAS, pursuant to Chapter 65 of the Water Code, the District is authorized to adopt such policies necessary to preserve and conserve available water supplies; and WHEREAS, the District seeks to adopt an order pertaining to illegal water connections and theft of water. NOW THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF THE SPECIAL UTILITY DISTRICT THAT: Section 1. The Board of Directors hereby approves and adopts this Order as described herein. Section 2. A person commits an offense of theft of water by any of the following actions: (a) A person may not knowingly tamper, connect to, or alter any component of the District's water system including valves, meters, meter boxes, lids, hydrants, lines, pump stations, ground storage tanks, and elevated storage tanks. This shall include direct or indirect efforts to initiate or restore water service without the approval of the District. (b) If, without the written consent of the District, the person knowingly causes, suffers or allows the initiation or restoration of water service to the property after termination of service(s). For purposes of this section, it shall be assumed that the owner, occupant, or person in control of the property caused, suffered, or allowed the unlawful initiation or restoration of service(s). (c) A person may not knowingly make or cause a false report to be made to the District of a reading of a water meter installed for metered billing. (d) A person commits a separate offense each day that the person performs an act prohibited by this section or fails to perform an act required by this section. Section 3. An offense under this Order is punishable in accordance with the District's rules and policies regarding rates and may result in disconnection of service. H-5 Section 4. The Board of Directors does hereby find and declare that sufficient written notice of the date, hour, place and subject of the meeting considering this Order was posted at a designated place convenient to the public for the time required by law preceding this meeting, that such place of posting was readily accessible at all times to the general public, and that all of the foregoing was done as required by law at all times during which this Order, and the subject matter thereof has been discussed, considered and formally acted upon. The Board of Directors further ratifies, approves and confirms such written notice and the posting thereof. Section 5. Should any paragraph, sentence, clause, phrase or word of this Order be declared unconstitutional or invalid for any reason, the remainder of this Order shall not be affected. Section 6. {If Applicable} Order No. , adopted on , is hereby repealed. Approved and adopted by the Board of Directors on this day of President, Board of Directors Attest: Secretary H-6 Water Supply Corporation Resolution Pertaining to Illegal Water Connections and Theft of Water Resolution No. A RESOLUTION PERTAINING TO ILLEGAL WATER CONNECTIONS AND/OR THE THEFT OF WATER RELATED TO THE WATER SUPPLY FOR THE WATER SUPPLY CORPORATION. WHEREAS, the Water Supply Corporation (the "WSC"), recognizes that the amount of water available to its water customers is limited; and WHEREAS,pursuant to Chapter 67 of the Water Code, the WSC is authorized to adopt such policies necessary to preserve and conserve available water supplies; and WHEREAS,the WSC seeks to adopt an order pertaining to illegal water connections and theft of water. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE WATER SUPPLY CORPORATION THAT: Section 1. The Board of Directors hereby approves and adopts this Resolution as described herein. Section 2. A person commits an offense of theft of water by any of the following actions: (a) A person may not knowingly tamper, connect to, or alter any component of the WSC's water system including valves, meters, meter boxes, lids, hydrants, lines, pump stations, ground storage tanks, and elevated storage tanks. This shall include direct or indirect efforts to initiate or restore water service without the approval of the WSC. (b) If, without the written consent of the WSC, the person knowingly causes, suffers or allows the initiation or restoration of water service to the property after termination of service(s). For purposes of this section, it shall be assumed that the owner, occupant, or person in control of the property caused, suffered, or allowed the unlawful initiation or restoration of service(s). (c) A person may not knowingly make or cause a false report to be made to the WSC of a reading of a water meter installed for metered billing. (d) A person commits a separate offense each day that the person perfoiins an act prohibited by this section or fails to perform an act required by this section. H-7 Section 3. An offense under this Resolution is punishable in accordance with the WSC's rules and policies regarding rates, including its approved tariff, and may result in disconnection of service. Section 4. The Board of Directors does hereby find and declare that sufficient written notice of the date, hour, place and subject of the meeting considering this Resolution was posted at a designated place convenient to the public for the time required by law preceding this meeting, that such place of posting was readily accessible at all times to the general public, and that all of the foregoing was done as required by law at all times during which this Resolution, and the subject matter thereof has been discussed, considered and formally acted upon. The Board of Directors further ratifies, approves and confirms such written notice and the posting thereof. Section 5. Should any paragraph, sentence, clause, phrase or word of this Resolution be declared unconstitutional or invalid for any reason, the remainder of this Resolution shall not be affected. Section 6. (If Applicable) Resolution No. , adopted on , is hereby repealed. Approved and adopted by the Board of Directors on this day of President, Board of Directors Attest: Secretary H-8 APPENDIX I TCEQ WATER CONSERVATION IMPLEMENTATION REPORT APPENDIX I TCEQ Water Conservation Implementation Report Texas Commission on Environmental Quality Water Conservation Implementation Report • ei This report must be completed by entities that are required to submit a water conservation plan to the TCEQ in accordance with Title 30 Texas Administrative Code,Chapter 288. Please complete this report and submit it to the TCEQ. If you need assistance in completing this form, please contact the Resource Protection Team in the Water Supply Division at(512)239-4691. Name: Address: Telephone Number: ( ) Fax: ( ) Form Completed By: Title; Signature: Date: I. WATER USES Indicate the type(s)of water uses(example: municipal,industrial, or agricultural). Use Use Use II. WATER CONSERVATION MEASURES IMPLEMENTED Provide the water conservation measures and the dates the measures were implemented. Description of Water Conservation Measure: Date Implemented: Description of Water Conservation Measure: Date Implemented: I-1 Description of Water Conservation Measure: Date Implemented: Description of Water Conservation Measure: Date Implemented: Description of Water Conservation Measure: Date Implemented: Description of Water Conservation Measure: Date Implemented: Description of Water Conservation Measure: Date Implemented: 1-2 Description of Water Conservation Measure: Date Implemented: Description of Water Conservation Measure: Date Implemented: Description of Water Conservation Measure: Date Implemented: Hi. TARGETS A. Provide the specific and quantified five and ten-year targets as listed in water conservation plan for previous planning period. 5-Year Specific/Quantified Target: Date to achieve target: 10-Year Specific/Quantified Target: Date to achieve target: B. State if these targets in the water conservation plan are being met. 1-3 C. List the actual amount of water saved. D. If the targets are not being met, provide an explanation as to why, including any progress on the targets. If you have any questions on bow to fill out this form or about the Water Conservation program,please contact the Texas Commission on Environmental Quality at(512)2394691. Individuals are entitled to request and review their personal information that the agency gathers on its forms. They may also have any errors in their information corrected. To review such information, contact us at 512-239-3282. 1-4 Ni Wylie City Council CITY OF WYLIE AGENDA REPORT Meeting Date: April 14, 2008 Item Number: Z City (City Secretary' Use Only) Department: Prepared By: Gayle Walton Account Code: Date Prepared: March 26, 2009 Budgeted Amount: Exhibits: 1 Subject Consider, and act upon, the appointment of a board member to the North Texas Municipal Water District (NTMWD) Board to fill an expired term of June 1, 2009 to May 31, 2011. Recommendation A motion to appoint to the North Texas Municipal Water District (NTMWD) Board of Directors for a term to begin June 1, 2009 and end May 31, 20011. Discussion The Board of Directors of North Texas Municipal Water District is a policy making body similar in nature to the City Council. The Board is responsible to both the State of Texas and to the member cities for assuring that NTMWD operations occur in accordance with state and federal law, in alignment with NTMWD policy, and in the best interests of the cities receiving services. In accordance with the statute creating the District (Article 8280-141), the qualifications of a director include the following: "No person shall be appointed a Director unless he resides in the city from which he is appointed. No member of a governing body of a city and no employee of a city shall be appointed as a Director." Under other state law, no other government official that receives compensation could be appointed. NTMWD's existing Board (18 member cities) is comprised of individuals who have worked to represent their communities in other capacities and who have a solid understanding of municipal concerns to share with other Directors. Historically, Directors have dedicated from 10 to 30 years of service to the Board, thereby gaining experience and contributing the necessary leadership. This provides the maximum benefit in order to assure the city's needs are met in the most effective manner. All NTMWD programs provide service based on cost to serve, with all cities provided equal treatment. Therefore, NTMWD policy established by the Board of Directors affects cost, performance and quality of service. The City of Wylie has two board members on the NTMWD Board; Mr. Marvin Fuller whose term expires May 31, 2010 and Mr. Robert Thurmond, Jr. whose term expires May 31, 2009. Page 1 of 2 Page 2 of 2 NTMWD is requesting that by majority vote, the Wylie City Council reappoint Mr. Robert Thurmond, Jr. or appoint another Director to serve a term from June 1, 2009 to May 31, 2011. Mr. Thuiiiiond stated that he would be willing to serve another term. The City Council will need to make this appointment before the tei in expires May 31, 2009. Approved By Initial Date Department Director CS 3-26-09 \ City Manager 11 loh1111111111011 20110111101011111',0101111011t 1111111111111111111„loll ,1111111111 '11111111111111' ' 111 Po 110.11,10111' '1'11"!i '111111:1111o11,' ' 11111111111111111111111111111 11' AS i_ _ EXIS - Regional Seri-ire Th-ough Unity March 11, 2009 Ms. Mindy Manson, City Manager City of Wylie 2000 Highway 78 North Wylie, Texas 75098 RE: NTMWD BOARD MEMBER APPOINTMENT Dear Ms. Manson: This is your official notification that Mr. Bob Thurmond's term of office as an NTMWD Board Member expires May 31, 2009. The City Council, by a majority vote, should appoint Mr. Thurmond or another Director to serve a term from June 1, 2009 to May 31, 2011. In accordance with the statute creating the District (Article 8280-141), the qualifications of a Director include the following:. person shall be appointed a Director unless he resides in the city from which. he is appointed. No member of a governing body of a city and no employee of a.city shall e. appointed as a Director." Under other state law, no other government official that receives compensation could be appointed. The cities served by the. NTMWD .appreciate the work and effort expended by .the appointed Directors. It is my.practe to visit with new Directors in an orientation session prior to their first meeting; therefore,. please notify my office in writing when the City Council has appointed a Director or the new term. Should you have any questions or need additional information, please do not hesitate to contact my office. Sincerely, IF J MES M. PARKS ecutive Director JMP/mcf cc: Mr. Bob Thurmond Ms. Carol Ehrlich, City Secretary 505 E Brown SE_P.0,Box 2408, Texas 75098-2408 Telephone:972/442-5405 Fax:972/442-5405 I V oxWylie City Council CITY OF WYLIE AGENDA REPORT Meeting Date: April 14, 2009 Item Number: 3 (City Secretary's Use Only) Department: Engineering Prepared By: Chris Hoisted Account Code: Date Prepared: April 6, 2009 Budgeted Amount: $1,220,000 Exhibits: Agreement Subject Consider, and act upon, approval of Amendment No. I to the Professional Engineering Services Agreement, in an amount not to exceed $57,000, with Birkhoff, Hendricks & Conway, L.L.P. for the design of the expansion of Brown Street from FM 1378 to Ballard Avenue. Recommendation Motion to approve Amendment No. I to the Professional Engineering Services Agreement, in an amount not to exceed $57,000, with Birkhoff, Hendricks & Conway, L.L.P. for the design of the expansion of Brown Street from FM 1378 to Ballard Avenue. Discussion The 2005 City of Wylie Bond Program identified $9,000,000 for the design and construction of approximately 9,500 linear feet of 4-lane concrete pavement section with sidewalks on Brown Street from FM 1378 to Ballard Avenue. $4,453,750 was also included in the recent Collin County Bond Program for the project and those funds are scheduled to be available in FY 2010. Total funds available for the project are $13,453,750. The first bond issue included$1,220,000 for engineering and right of way acquisition for this project. Engineering services for the project include the design of a 4-lane paving section, storm sewer, sidewalks, utility relocations, erosion control, traffic control, and right of way documents. Construction plans for the project are approximately 60% complete and right of way documents are being prepared. Upon staff review of the construction plans, two water lines and two sewer lines were identified for replacement due to the age and condition of the lines as well as the location of the lines in relation to the proposed paving. Also, two alternates are being considered with the project. The first alternate is improvements to the drainage channel from Winding Oaks to Brown Street. The improvements include a concrete pilot channel and rock gabion walls to match the portion south of Brown Street that was completed in 2004. The second alternate is the reconstruction of the alley from. Brown to Jefferson between Jackson and Ballard. The alley is currently not paved and commercial businesses on Ballard and Jackson use the alley to access parking in the rear of the property. The increase in design services is $57,000 and includes field surveys and design services. Approved By Initial Date Department Director CH 04/06/09 City Manager 111 111 Page 1 of I BIRKHOFF, HENDRICKS & CONWAY, L.L.P. PROFESSIONAL ENGINEERS 11910 Greenville Ave.,Suite 600 Dallas,Texas 75243 Fax(214)461-8390 Phone(214)361-7900 JOHN W.BIRKHOFF,R.E. RONALD V.CONWAY,P.E. GARY C.HENDRICKS,P.R. JOE R,CARTER.P.E. PAUL A.CARLIN E.P.R. MATT HICKEY,P.R. ANDREW MATA,JR..P.E. March 19, 2009 Chris Hoisted, P.E. City Engineer City of Wylie 949 Hensley Lane Wylie, Texas 75098 Re: West Brown Street Improvements—Country Club Drive to North Ballard Avenue Amendment No. I to Professional Engineering Services Agreement Dear Mr. Hoisted: We are pleased to submit Amendment No. 1 to the Professional Engineering Services Agreement for design of West Brown Street Paving and Drainage Improvements from Country Club Drive to North Ballard Avenue for the City of Wylie as you requested. We are providing three(3)copies of the amendment for your use. Please have all three copies of the Amendment executed by the City of Wylie and return one copy to us for our files. Do no hesitate to call us if there are questions related to this agreement. We look forward to working with you on this important project and are available to discuss the project at your convenience. i..Sincerely ours, Joe R.Carter,P.E. Enclosures I:7015 rorrtclev,mytic,.est brown transmit-amend-I.doc AMENDMENT No. 1 To THE AGREEMENT BETWEEN THE CITY OF WYLIE(OWNER) AND BIRKHOFF, HENDRICKS, & CONWAY L.L.P. (ENGINEER)FOR"WEST BROWN STREET PAVING& DRAINAGE IMPROVEMENTS" DATED: JANUARY 8, 2008 This Amendment No. 1 serves to authorize the ENGINEER to provide Basic Services as described under Parts I, II and III of the original agreement and to provide Additional Services as described under Part IV A of the original agreement to add the following drainage, alley, water and sanitary sewer improvement plans to the project: • Design Channel Improvements From Winding Oaks to West Brown Street (400' Long+/-) o Budget Amounts Parts I, II and III: $10,000. Part IV A: $600 • Extend The 12-inch Waterline From Country Club Road To The East 1,050' (+/-). o Budget Amounts Parts I, II and III: $9,000, Part IV A: $0 • Realign The 8-inch Waterline Between Winding Oaks And Keefer Street. o Budget Amounts Parts I, II and III: $8,000, Part IV A: $600 • Replace 6-inch Sanitary Sewer With 8-inch Between Cottonbelt Avenue And Keefer Street. o Budget Amounts Parts I, II and III: $7,000, Part IV A: $600 • Replace 6-inch Sanitary Sewer And Reconstruct Alley From North Of Brown St. To Jefferson St. o Budget Amounts Parts I, II and III: $20,000, Part IV A: $1,200 This Amendment No. 1 to the Agreement dated January 8,2008 shall supplement and amend Exhibit C — Payment Schedule of that agreement. The amount for the Additional Services shall be revised as follows: A. Field Surveys (Design, Property&Control) $ 29,400 (+$ 3,000) B. Prepare Right-of-Way Strip Map $ 18,000 (No Change) C. Prepare Ten(10) Field Note Descriptions and Exhibits $ 18,000 (No Change) D. Perform a Flood Study for the West Tributary $ 20,000 (No Change) E. Perform Grade Separation Study at the Southern Pacific Railroad $ 18,500 (No Change) F. Pothole Existing Franchise Utilities $ 5,200 (No Change) G. Geotechnical Evaluation and Report $ 18,300 (No Change) H. Signal warrant study and plans for Westgate and Ballard $ 27,600 (No Change) I. Prepare Landscape& Irrigation Plans and Specifications $ 21,500 (No Change) J. Prepare Street Lighting Plans and Specifications $ 34,500 (No Change) K. Waterline, Sanitary Sewer, Alley& Drainage Improvements(New) $ 54,000 (+$54,000) Total Amount Additional Services $265,000 (+$57,000) The maximum overall fee established by the current agreement shall be increased by $57,000.00 and the new maximum overall fee and shall not be exceeded without written approval by the City, based on increased scope of services. All other requirements of the current Agreement shall apply. 1,70 13 conteln es1 browroamcndrocnt-I doc PAGE 1 OF 2 Amendment No. 1 West Brown Street Paving and Drainage Improvements Both of the undersigned parties agree to the above terms described for this Amendment No. 1 to the original Agreement dated, January 8, 2008 for the West Brown Street Paving and Drainage Improvements project. OWNER: ENGINEER: CITY OF WYLIE,TEXAS BIRKHOFF, HENDRICKS & CONWAY,L.L.P. By: By: •Joe R.R. Carter, P. E., Partner Date: Date: 771,a4,,k /9 2c)o9 Attest: Attest: Ronald V. Conway, P.E., Paitner Date: Date: 1:17015 coatdnIlryllemest brovreLamendarrA.I.dat PAGE 2 OF 2 Wylie City Council I A � 1 { CITY OF WYLIE AGENDA REPORT - w Meeting Date: April 14, 2009 Item Number: 4 City Secret office (City Secretary's Use Only) Department: Secretary Prepared By: City Secretary Office Account Code: Date Prepared: April 7, 2009 Budgeted Amount: Exhibits: 6 Subject Consider, and act upon, Resolution No. 2009-11(R) denying CoSery Gas Ltd.'s requested rate changes; authorizing intervention in any necessary proceedings affecting city's interests before administrative or judicial bodies; requiring reimbursement of reasonable legal and consultant expenses; finding that the meeting at which this resolution is adopted is open to the public as required by law; and requiring delivery of this resolution to the company and legal counsel. Recommendation Motion to approve Resolution No. 2009-11(R) denying CoSery Gas Ltd.'s requested rate changes; authorizing intervention in any necessary proceedings affecting city's interests before administrative or judicial bodies; requiring reimbursement of reasonable legal and consultant expenses; finding that the meeting at which this resolution is adopted is open to the public as required by law; and requiring delivery of this resolution to the company and legal counsel. Discussion On or about December 18, 2008, CoSery Gas Ltd. ("CoServ" or "Company") filed its "Statement of Intent to Increase Rates" seeking to increase system wide rates by $2.9 million which represents an overall total revenue increase of approximately five percent (5%). In addition to the rate increase, CoSery also seeks approval of a new rate design that provides for a fiat fee per month based on a customer's prior 12 months of historical usages. Cities took action to suspend the January 23, 2009 effective date for 90 days. City of Wylie Council approved Resolution No. 2009-03 on January 27, 2009 suspending the effective date of CoSery Gas Ltd.'s requested rate changes. This suspension period provided time to evaluate the filing, determine whether the filing complies with the law, and if unlawful, to determine what further strategy, including settlement or litigation to pursue. Denial of the request to increase rates is recommended. This resolution denies the Company's requested rate increase and it also requires that the Company's current rates be maintained for all customers within the City. If the City does not take action to deny the filing, CoSery may begin charging increase rates after April 23, 2009. Denial of the requested rates will prevent the implementation of increased rates until an order is issued by a regulatory body. Otherwise failure to take action by April 23, 2009 means that the rates are deemed approved. Also, denial of the requested rates will preserve the Cities' ability to develop the issues in CoServ's request in further settlement discussion and, if necessary, at Page 1 of I Page 2 of 2 hearings. Kristen Doyle of Lloyd Gosselink law firm, representing Cities, advised counsel for CoSery of the Cities decision to move forward with denial actions and will continue to work with the Company to seek a resolution through settlement. Expenses incurred to set rates are reimbursable by the Company, so no city funds are necessary. The Company is entitled to seek recovery of rate case expenses through a surcharge on customer's bills. All options will be pursued to minimize costs while protecting ratepayers from unreasonable rates. Approved By Initial Date Department Director 4/7/09 City Manager a if I I) ;11 i 0 •••1 RESOLUTION NO. 2009-11(R) RESOLUTION OF THE CITY OF WYLIE, TEXAS DENYING COSERV GAS LTD.'S REQUESTED RATE CHANGES; AUTHORIZING INTERVENTION IN ANY NECESSARY PROCEEDINGS AFFECTING CITY'S INTERESTS BEFORE ADMINISTRATIVE OR JUDICIAL BODIES; REQUIRING REIMBURSEMENT OF REASONABLE LEGAL AND CONSULTANT EXPENSES; FINDING THAT THE MEETING AT WHICH THIS RESOLUTION IS ADOPTED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; AND REQUIRING DELIVERY OF THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL. WHEREAS, the City of Wylie, Texas ("City") is a regulatory authority under the Gas Utility Regulatory Act ("GURA") §§ 102.001(b) and 103.001 and has original jurisdiction over the gas utility rates of CoSery Gas Ltd.'s ("CoServ" or the"Company"); and WHEREAS, on or about December 18, 2008, CoSery filed with the City a Statement of Intent to increase gas rates in all municipalities within the CoSery System; and WHEREAS, the City took action to suspend the January 23, 2009 effective date of CoServ's Statement of Intent for the maximum period allowed by law and to join with other cities served by CoSery ("CoSery Cities") to hire a rate expert and legal counsel to evaluate the Company's support for its requested rate increase; and WHEREAS, approximately $2.4 million to $2.8 million of the Company's requested $2.9 million increase is related to its requested rate of return and proposed capital structure, which does not appear to be reasonably supported by actual operations; and WHEREAS, based upon the analysis and recommendation of the CoSery Cities' expert and legal counsel, the City finds that the Company has not satisfactorily established that it is entitled to increase its rates; and WHEREAS, GURA § 103.022 provides that costs incurred by cities in ratemaking activities are to be reimbursed by the regulated utility. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: Section 1. That the Company's Statement of Intent to increase gas utility rates within the City be denied in all respects. Section 2. That the Company shall continue to charge its existing rates for natural gas services to customers within the City. Resolution No. 2009-11(R) 1 Denial of CoSery Requested Rate Change Section 3. That the City's reasonable rate case expenses shall be reimbursed by CoServ. Section 4. That it is hereby officially found and deteiiiiined that the meeting at which this Resolution is passed is open to the public as required by law and the public notice of the time, place, and purpose of said meeting was given as required. Section 5. A copy of this Resolution shall be sent to Charles D. Harrell, Chief Financial Officer, CoSery Gas Ltd., 7701 South Stemmons, Corinth, Texas 76210-1842 and to Kristen Doyle, counsel for Cities Served by CoSery at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Ste. 1900, Austin, Texas 78701. Eric Hogue, Mayor, City of Wylie, Texas ATTEST: Carole Ehrlich, City Secretary Resolution No. 2009-11(R) Denial of CoSery Requested Rate Change LloydLloyd 816 Congress Avenue,Suite 1900 Austin,Texas 78701 Gosselink Telephone:(512) 322-5800 i�AYIM Facsimile: (512)472-0532 ri ATTORNEYS AT LAW www.lglawfirm.com Ms.Doyle's Direct Line: (512)322-5820 Email: kdoyle(aaIglawfirm.com MEMORANDUM TO: Cities Served by CoSery Gas Ltd. FROM: Kristen Doyle Geoffrey Gay DATE: April 1, 2009 RE: Action Needed—Schedule Denial Resolution on or Before April 23, 2009 Attached is a resolution denying CoSery Gas Ltd.'s ("CoServ") pending rate increase request. Please take action on the resolution on or before the April 23rd effective date. For your convenience, a model staff report is also attached. For tracking purposes, contact Kristen (kdoyle@lglawfirm.com, 512/322-5820) with the date your council is scheduled to act on the resolution. If your city is unable to act by April 23'd, please contact Kristen as soon as possible. Absent an agreement with the Company, a city's failure to take action denying CoServ's requested rate increase by April 23, 2009 will be considered an approval of the requested increase and the Company will be able to immediately institute the full increase. Background On or about December 18, 2008, CoSery filed a Statement of Intent to Increase Rates with all cities in its North Texas service area. The Company seeks to increase revenues by $2.9 million. Excluding the revenue from gas costs, which is merely a pass through, the requested increase results in a 20% increase over the $14.8 million revenue earned by the Company in the test year. In addition to the rate increase, CoSery also seeks approval of a new rate design that provides for a flat fee per month based on a customer's prior 12 months of historical usages. All cities took action to suspend the January 23, 2009 effective date for 90 days. The suspension period provided time to evaluate the filing, determine whether the filing complies with the law, and if lawful, to determine what further strategy, including settlement or litigation, to pursue. The Cities also approved working together as a coalition to investigate the Company's filing, negotiate with the Company and intervene and participate in the litigation of any necessary administrative proceedings or court litigation related to an appeal of city action. This is the second time that CoSery Cities have worked together as a coalition. Prior to this filing, CoServ's most recent rate case was filed by the Company in 2004. The coalition ultimately Lloyd Gosselink Rochelle & Townsend, P.C. April 1, 2009 Page 2 settled CoServ's rate request in 2005, reducing the Company's requested increase by more than 50%. Review of the Company's Request- Rate of Return The coalition hired rate expert Connie Cannady to review the Company's pending request. Connie was the coalition's expert in the last CoSery rate case. Connie conducted discovery and met with CoSery representatives to investigate the support for the requested increase. Her final report and supporting schedules are attached. As reflected in Connie's report, approximately $2.4 million to $2.8 million of the requested $2.9 million increase is related to the capital structure and rate of return requested by the Company. In the 2004 case, the Cities and the Company came to an agreement on the total increase in revenue requirements and did not definitively establish a capital structure or rate of return. However, a closer look at the organizational and financial structure of CoSery is warranted now that operations and investments are more established. In this case, the Company proposed a hypothetical capital structure cost of equity that does not reflect the actual amount of debt and equity owned by CoSery Gas. While it is not necessarily unusual to rely upon a proxy capital structure when setting rates, the unique circumstances underlying CoServ's structure, funding, and investors raise concern. CoSery Gas Ltd. is a partnership held by a non-profit cooperative electric provider, with a board of directors that sets the return (not the marketplace). The fact that CoSery Gas is owned as a profit-making venture by a non-profit electric cooperative is very unusual. CoSery representatives were unable to provide examples of other ownership arrangements like this in Texas. The company believes that there may be one other company like this in the U.S. The non-profit nature of CoSery Gas' owners and the lack of precedent make it difficult to agree upon an appropriate rate of return for the Company. The rate of return set for regulated utilities is intended to recognize the risk the investors undertake by investing their capital in the Company. With typical investor-owned utilities, one assumes that the investors have a choice regarding where to invest their capital, and that the choice is motivated entirely by maximizing the amount of profit to be earned relative to the risks. However, in this case, the sole investor, the electric cooperative, is specifically set up not to retain profits. In our opinion, CoServ's gas operation more closely matches that of a municipal utility operation where the customers (taxpayers) are the owners. Based on this premise, we recommend that the rate of return be established in the same manner that it would be for a municipal utility, river authority, power agency or electric cooperative, which sets equity equal to the average bond yield plus 2%. The Company maintains that it be considered an investor-owned utility, exactly like Atmos Gas or other investor-owned gas utilities. Accordingly, the Company believes that it is entitled to an 11% return on equity, far greater than the level that we believe is appropriate. At Lloyd Gosselink Rochelle & Townsend, P.C. April 1, 2009 Page 3 this time, the Company is unwilling to deviate from its position that it be treated as anything other than a traditional investor-owned utility when setting its rates. Denial of the Company's Request is Recommended In order to seek direction from the Cities, a conference call was held for all coalition Cities on March 31, 2009. Several CoSery Cities participated in the conference call and discussed options regarding CoServ's pending request. Because the deadline for city action is April 23rd, the Cities decided to take action to deny the request. Denial accomplishes two objectives: • It prevents the implementation of increased rates until an order is issued by a regulatory body (the Railroad Commission or the city — if the company further extends the effective date). Otherwise, failure to take action by April 23rd means that the rates are deemed approved. • It preserves the Cities' ability to develop the issues in CoServ's request in further settlement discussions and, if necessary, at hearing. Kristen advised counsel for CoSery of the Cities' decision to move forward with denial actions. We will continue to work with the Company to seek a resolution through settlement. Expenses incurred to set rates are reimbursable by the Company, so no city funds are necessary. However, the Company is entitled to seek recovery of rate case expenses through a surcharge on customers'bills. We are cognizant of the costs of litigating a rate case and will pursue all options to minimize costs while protecting ratepayers from unreasonable rates. If you have any questions or need more information, please contact Kristen or Geoffrey. Lloyd Gosselink Rochelle & Townsend, P.C. MODEL STAFF REPORT PURPOSE CoSery Gas Ltd. ("CoServ" or "Company") filed its Statement of Intent to Increase Rates on or about December 18, 2008 seeking to increase system-wide rates by $2.9 million. This represents an overall total revenue increase of approximately five percent (5%). The resolution denies the Company's requested rate increase and requires that the Company's current rates be maintained for all customers within the City. If the City does not take action to deny the filing, CoSery may begin charging increased rates after April 23,2009. DISCUSSION The City has original jurisdiction over the natural gas rates charged by the Company. In accordance with that authority, the City lawfully suspended the January 23, 2009 effective date for 90 days to review the Company's requested rate increase. The City's review of CoServ's rate increase request is part of a coordinated effort by a coalition of cities served by CoSery Gas ("CoSery Cities"). To conduct the review of the requested rate increase, the CoSery Cities retained a consultant and legal counsel with expertise in regulatory rate making issues. All reasonable consulting and legal fees incurred by CoSery Cities are reimbursable by the Company. Approximately $2.4 million to $2.8 million of the requested $2.9 million increase is related to the hypothetical capital structure and rate of return requested by the Company. The Company's proposed capital structure and cost of equity does not reflect the actual amount of debt and equity owned by CoSery Gas. While it is not per se unreasonable to rely upon a proxy capital structure when setting rates, the unique circumstances underlying CoServ's structure, funding, and the non-profit nature of CoServ's sole investor raise concern that implementing the Company's proposal would result in unreasonable rates. The action taken by the City to deny CoServ's rate increase is likely to be appealed by the Company to the Texas Railroad Commission ("RRC"). In an effort to avoid litigation if at all possible, CoSery Cities will continue to explore the possibility of settlement with the Company. CoServ's most recent rate case (filed in 2004) was ultimately settled by agreement between the CoSery cities and the Company and reduced the Company's requested increase by more than 50%. Explanation of"Be It Resolved" Paragraphs: Section 1. This section finds the new rates proposed by the Company to be unreasonable and denies CoServ's request to increase rates. Section 2. This section requires CoSery to continue to charge its existing natural gas rates to customers within the City. Section 3. This section reflects that Cities are statutorily entitled to recover their reasonable rate case expenses from the utility. No individual city incurs liability for payment of rate case expenses by adopting a denial resolution. Section 4. This section merely recites that the resolution was passed at a meeting that was open to the public and where consideration of the resolution was properly noticed. Section 5. This section provides that both CoSery and counsel for the coalition of cities will be notified of the City's action by sending a copy of the approved and signed resolution to certain designated individuals. J. Stowe & Co. March 31, 2009 Ms. Kristen Doyle Lloyd, Gosselink, Baldwin&Townsend, P.C. 111 Congress Avenue, Suite 1800 Austin, Texas 78701 Dear Ms. Doyle: J. Stowe & Co. provides the following preliminary report concerning a review of the request for rate change filed by CoSery Gas, Ltd. ("CoServ") for its entire service area in North Texas. As you will note, we have provided a range for the revenue requirements, depending on the decision made by the Cities with respect to alternative capital structures discussed herein. Once a decision is made, we will compute the overall recommended revenue requirements as well as provide recommendations with respect to rates for each customer class. This study does not constitute an examination of the financial condition of CoSery or its affiliated operations. Therefore, J. Stowe & Co. cannot and does not express any position with regard to the accuracy or validity of the financial information provided by CoSery during the course of the analyses. OVERVIEW OF THE FILING Based on a test year ended June 30, 2008, CoSery filed for an increase of $2,915,367 in revenue requirements with annualized revenue for the test year of$56,659,744. Excluding the revenue from gas costs, which are merely a pass through, the requested increase results in a 19.7% increase in test year base and miscellaneous revenue of$14,833,580. The rate filing was submitted to the Cities on or about December 18, 2008 with a rate design that provides for a flat fee per month based on a customer's prior twelve months of historical usages.' ANALYSIS OF THE FILING In order to streamline the review and associated rate case expenses, we have attempted to perform the most cost-effective review of the filing as presented. Under this approach, we have limited our analysis to those issues that appear to have larger impacts on the underlying request as well as those issues that conflict with prior case findings. Therefore, any lack of focus on particular issues or computations within the case does not indicate any acquiescence with the Company's proposal or computational approach. The proposed residential rates have three flat rates based on low, medium and high usage patterns. The proposed commercial rates have two flat rates along with a more traditional rate design for the largest commercial customers. 1300 E. Lookout Dr., Suite 100 Phone 972.680,2000 Richardson TX 75082 Fax 972.680.2007 Ms. Kristen Doyle March 31, 2009 P ,n e 2 Summary of Major Findings • We recommend a change to test year system-wide revenue requirements within the range of an increase of $36,950 to an increase of $424,816. This range is between $2,878,417 and $2,440,551 less than the$2,915,367 requested by the CoServ. • CoServ's requested value of storage gas should reflect more recent natural gas prices rather than those from the test year. • CoSery has not provided justification for its significant revenue lag days, and therefore, has not justified its requested cash working capital. • CoSery has not met its burden concerning the reasonableness of the requested overtime expense with approximately 14% of the employees reporting over 30% in overtime expense. • CoSery has inappropriately included incentive compensation that relates to financial measures rather than operations measures. • CoSery has not met its burden concerning its requested meter reading costs in that it has recently hired two internal meter readers and does not solely rely on affiliated services. • CoSery has not met its burden concerning the requested increase in affiliated costs related to customer records and collections. • CoServ's requested capital structure of 44.2% debt /55.8% equity and requested 11% return on equity are excessive in light of the Company's organization, actual capitalization and methodologies used for similar operations and ownership. • CoSery has requested a volumetric rate per all Ccf sold to fund conservation efforts without justification of benefits to ratepayers. • CoSery has inappropriately collected charitable donations from customers without prior approval from the Cities TOTAL RATE BASE The Company is requesting a return on an adjusted total rate base of $75,082,419. The Company has essentially incorporated its per book balances as of June 30, 2008, with the addition of Completed Construction Not Classified ("CCNC"), exclusion of accumulated 1300 E. Lookout Dr., Suite 100 Phone 972.680.2000 Richardson TX 75082 Fax 972.680.2007 Ms. Kristen Doyle March 31, 2009 4zc 3 depreciation on PHFU, and a cash working capital allowance ("CWC"). We are recommending an adjusted total rate base of$73,112,321, or $1,970,098 less than the Company's request. Our recommendation is based on the following adjustments: • The Company's storage gas inventory is based on a thirteen month average of its actual gas storage inventory value during the test year. The average price/MMBtu for this computation is $6.67. Given the significant fall of natural gas prices since the end of 2008, it is our opinion that the $6.67/MMBtu is not representative of today's costs. Because a thirteen month average methodology is premised on establishing "normalized" monthly balances for inventories, the balance should reflect "normal" natural gas costs during the time these rates will be in effect. Using the NYMEX indices, we have priced the thirteen month average of MMBtus held in inventory during the test year at the corresponding monthly future prices published as of January 28, 2009. This computation results in an average storage gas inventory of$2,390,496, with an average price/MMBtu of $4.06. The impact of this adjustment is to reduce CoServ's requested rate base by $1,336,716 as shown on CTC Schedule 2. • CoSery has requested $633,382 in CWC based on a lead lag study. In the prior case, CoSery did not provide a lead lag study and the argument was that without such supporting analysis, any CWC allowance should not be included. In the instant case, CoSery has provided a detailed lead lag study, but the results of the study are unreasonable. More specifically, CoSery is requesting revenue lag days of 60.86 days. This number of lag days translates into average customer payment practices of over two months from the middle of the customers' billing cycles. Clearly, if this is the average payment practice, the Company has not instituted reasonable billing and collection procedures and therefore, should not be allowed to pass through costs resulting from such inefficiencies. For comparison, the Railroad Commission's final order in the most recent Atmos Energy decision (GUD Docket No. 9762) provided for revenue lag days of 33.86 days; 44% less time for collections than proposed by CoServ.2 In fact, Atmos had originally requested revenue lag days computed under the same methodology used by CoSery for the collection lag, which was found by the Commission to be unreasonable. 2 Revenue lag days of 33.86 provides for an average payment time for customers of approximately 19 days after the end of the billing cycle. 1300 E. Lookout Dr., Suite 100 Phone 972.680.2000 Richardson TX 75082 Fax 972.680.2007 Ms. Kristen Doyle March 31, 2009 14 With respect to the billing lag days component of the revenue lag days, CoSery is using the same methodology as used by Atmos, but with staggeringly different results. Atmos supported a lag between the meter reading and the billing to be approximately 2.72 days. CoSery has used an average lag of 7.62 days. In other words, it takes CoSery almost 8 days after the meter is read to develop a bill for its customers. The Railroad Commission has stated that even one day between meter reading and billing is achievable. We conducted some sensitivity computations on CoServ's proposal and found that it would only require a reduction of 4.8 days to CoSery proposed revenue lag days to completely remove any CWC requirement in this case. This begs the questions as to whether CoServ's CWC allowance would actually be negative if it ran more efficiently with respect to customer billings and collections. Therefore, it is our opinion, that CoSery should not be authorized a CWC allowance that requires rate payers to fund working capital needs derived from what appear to be inefficient operations. We recommend that the CWC allowance be set to $0.3 O&M EXPENSE ADJUSTMENTS CoSery is requesting recovery of O&M expenses of $8,566,742. This is comprised of the Company's requested $8,359,893 of operating expense, depreciation expense, and payroll and property tax expense shown on CTC Schedule 3 as well as the State Margin tax shown on CTC Schedule 1. We recommend that this amount be reduced by $318,165 for a total O&M expense of$8,248,577'. Our recommendation is based on the following adjustments: • The Company annualized its payroll based on the actual number of employees as of the test year end, their respective annual salaries, the overtime for the test year and the incentive compensation amounts awarded. CoSery allocated 67.6% of these expenditures to expense with the remaining allocated to capital. We noted three issues with respect to the annualization of payroll. First, the Company included overtime percentage that did not appear to be fully justified for a "nointal" operation. In fact, 5 of the 36 employees had overtime percentages that were in excess of 3 We note that revenue lag days for electric T&D companies, where payments are received from third party REP's, are considerably less than the 60.86 days proposed by CoServ. This amount is based on a 50/50 capital structure. The recommended O&M with State Margin Tax for a 60/40 capital structure is$8,243,474: $323,268 less than the Company proposed. 1300 E. Lookout Dr., Suite 100 Phone 972.680.2000 Richardson TX 75082 Fax 972.680.2007 Ms. Kristen Doyle March 31, 2009 I 30%, with two showing over 50%. In our opinion, and given our experience in evaluating utility rate filings, such overtime costs are excessive. We adjusted the overtime so that the average percentage for all employees is approximately 8%. Making this adjustment reduces the proposed payroll expense by $28,085. The second adjustment to the Company's proposed payroll expense is for the incentive compensation included in the rate filing. In recent rulings before the Public Utility Commission, the Commission found that, in order for such costs to be included in rates, the incentive compensation should be tied to operational measures, such as customer service, and safety, and not to meeting financial targets. Based on information provided by CoServ, approximately 30% of the incentive compensation awarded is tied to financial measures, and therefore, in our opinion, should be disallowed. This adjustment reduces the expensed portion of payroll expense by $12,128. This adjustment and the overtime adjustment total $40,213 as shown on CTC Schedule 4. • The third issue with respect to the annualization of payroll expense was noted during the analysis of the proposed affiliated costs included in the filing. The Company requested that there be an increase in meter reading expense based on the meter reading services provided by CoSery electric operations. However, on or about the end of the test year, two of the meter readers became full time employees of CoSery Gas. Their respective salaries and benefits are included in the Company's direct payroll expense. Therefore, to include the requested affiliated costs would be a double counting of a certain portion of the costs. Our analysis included a review of the number of daily meters that were read per employee during the test year by the affiliated operation. Assuming that each of the CoSery new hires would read the same daily numbers, we were able to compute the remaining number of meters that needed to be read by the affiliate. Adjusting the affiliated costs to remove the two gas meter readers, we then allocated the remaining costs based on the meters that still required affiliated readers. This computation results in a reduction to the Company's requested expense of $166,499 as shown on CTC Schedule 4. • In addition to the meter reading services, CoSery receives customer records and collection services from its affiliated electric operations. These costs have continued to increase each year since the prior rate filing, which in large part is understandable given the significant growth in customers. However, the test year expense does not follow the growth in customers as it had in prior years. The expense for customer records and 1300 E. Lookout Dr., Suite 100 Phone 972,680.2000 Richardson TX 75082 Fax 972.680,2007 Ms. Kristen Doyle March 31, 2009 6 collections increased by over 18.9% from the previous year and customers only increased by 14.7%. In prior years, the change in customer records and collections expense increased at a lower or somewhat equal percentage to the percentage increase in the number of customers. Therefore, for this filing, we have adjusted the expense to reflect the same percentage increase as the percentage increase in the average number of customers. This adjustment results in a decrease in expense of$52,095. • Our final adjustments to O&M expense are for taxes other than income. Due to the recommended adjustment to payroll expense, we have reduced payroll taxes by $3,158. We had adjusted property taxes to take into account our recommended gas storage inventory, which reduces the amount proposed by CoSery by$27,758. FEDERAL INCOME TAXES For purposes of this report, we have computed a federal income tax effect of all of the above in the same manner as proposed by the Company. Due to the range in the capital structure, the FIT amounts range from $1,291,368 to $1,614,210. These computations are shown on the two attached alternative CTC Schedule 5s. CAPITAL STRUCTURE AND RATE OF RETURN In the prior case, the Cities and the Company came to an agreement on the total increase in revenue requirements and did not definitively establish a capital structure or rate of return. The Company had proposed the use of a hypothetical capital structure in much the same manner as proposed in this case. However a closer look at the organizational and financial structure of CoSery is warranted now that operations and investment are more established. CoSery does not have its own equity, but rather is partially funded by its affiliated partners along with its own long-term debt. As of the end of the test year, CoServ's trial balance reflected an "equity" position that was negative, and outstanding long term debt approximately equal to the total rate base requested in this proceeding. Therefore, if we were to use the actual capital structure, the rate of return would be solely based on CoSery Gas' cost of debt. Conversely, the use of other gas distribution companies to determine both capital structure and rate of return is, in our opinion, not entirely supportable in that CoSery Gas Ltd. is a partnership held by a cooperative electric provider, with a board of directors that sets the return, (not the market place). If we review the capital structure of CoSery electric as of 2007, the percentage of 1300 E. Lookout Dr., Suite 100 Phone 972.680,2000 Richardson TX 75082 Fax 972.680.2007 Ms. Kristen Doyle March 31, 2009 Pi c 7 debt and equity was 66.4% and 33.6%, respectively. CoSery is requesting a capital structure that is based on 44.2% debt and 55.8% equity, which in our opinion, is not at all reflective of its operations or its affiliates' operations. In order to provide the Cities alternatives, we have provided the rate of return computations with a capital structure of 60/40% (reflective of CoSery Electric) and a capital structure of 50/50%. We recommended that the Company's proposed capital structure be rejected. In our opinion, CoServ's gas operation more closely matches that of a municipal utility operation where the customers (taxpayers) are the owners. Based on this premise, we are recommending that the rate of return be a combination of CoSery Gas' actual debt costs and an equity cost component based on non-investor owned electric computations. Instructions for the TCOS in PUC Project No. 21276 provided that using a "rate of return method" for a municipal utility, river authority, power agency or electric cooperative should include: "A cost of owner's equity equal to the average yield for bonds of an entity with the TSP's credit rating published in Moody's Credit Perspective or similar publication during the most recent three months plus two percent shall be presumed reasonable." We used the Moody's Municipal Bond Averages as of March 5, 2009 to develop a recommended return on equity under the above approach of 8.2%. We used the average of the "A" and "Baa" ratings (6.2%) and added the above referenced 2%. The actual debt cost for CoSery Gas, based on the trial balance provided in the rate filing, is 6.7%. Using the 60/40% capital structure, the overall rate of return is 7.30%, with a 50/50% capital structure providing a ROR of 7.45%. These compare to the Company's requested ROR of 8.93%. COST OF SERVICE AND RATE DESIGN CoSery is requesting a rate design that is based on a flat monthly fee for service for residential and non-large commercial customers. The proposal includes three usage categories for residential and two for non-large commercial customers where category assignment is based on a prior year's entire usage. The Company's proposal for large users is to maintain a traditional customer charge and volumetric charge based on actual monthly usages. We do not recommend the rate design proposed by the Company. Although it will provide the Company with a steady stream of revenue with fewer impacts from weather fluctuations, it does not provide for a cost-causal matching during the period the rates are charged. Additionally, a flat rate structure would not promote conservation during periods when natural gas supplies are 1300 E. Lookout Dr., Suite 100 Phone 972.680.2000 Richardson TX 75082 Fax 972.680.2007 Ms. Kristen Doyle March 31, 2009 8 lessened due to weather or economics factors as the customers will pay a flat rate for entire year, regardless of usage. Therefore, we recommend a traditional approach that provides for a monthly customer charge (steady stream of revenue), plus a volumetric rate applied to actual monthly usage. In periods where gas costs increase, the customer may be able to use less and therefore, pay less, without having to wait until the following year to realize any cost savings. With respect to conservation, CoSery is proposing a separate rate rider that would charge each customer $.005 per Ccf (hundred cubic feet). These proceeds are to be used to fund the Company's "Conservation Program," which is stated as a program that will provide financial assistance to qualified customers to buy energy reducing goods and services. We recommend that the Cities disallow this proposal. The Company has not provided detail of the programs to be included, the estimated energy savings for each program, or how the conservation efforts will benefit the entire customer base that will be charged the additional rate. One additional issue came to our attention during the rate review. CoSery Electric provides a program to both electric and gas customers which allows a "rounding-up" of a customer's billing to the nearest whole dollar; Operation Roundup®. The proceeds go to the CoSery Foundation, which distributes funding for a variety of charitable causes within the CoSery service area. However, the Company did not file any proposed rider for this type of program for its gas billings. In our opinion, the Cities should have approved such a program before its implementation as these are essentially charitable contribution being made by the customers. In general, charitable contributions are included in the rate filing so regulators can determine the appropriateness of requiring ratepayers to pay for such contributions. In the instant case, CoSery has removed its reported charitable contributions for the test year (approximately $5,000), but it did not include any information concerning the contributions under Operation Roundup®. Based on our inquiries, CoSery reported that customers who only received gas service contributed $64,000 during the 2008 calendar year. Additionally, the combined gas and electric customers contributed $177,000 for the same period. Assuming gas revenue represents 30% of the total revenue received from the combined billings, gas customer contributed approximately $117,000 during 2008. Again, there was no regulatory approval for these collections. J. Stowe & Co. greatly appreciates this opportunity to assist the Cities served by CoServ. Additional analysis will be conducted with an update to this preliminary report after the Cities have provided direction with respect to the revenue requirements and rate design issues. If you 1300 E. Lookout Dr., Suite 100 Phone 972.680.2000 Richardson TX 75082 Fax 972,680.2007 Ms. Kristen Doyle March 31, 2009 1 9 have any questions concerning these initial findings and recommendations, please contact Ms. Connie Cannady at 972-680-2000. Very truly yours, Connie Cannady Manager J. Stowe & Co. 1300 E. Lookout Dr., Suite 100 Phone 972.680.2000 Richardson TX 75082 Fax 972.680.2007 03/31/2009 TUE 14: 19 FAX 9726802007 J. Stowe & Co. 0001/007 J . S T-C)vv & C cp. Fax To: From: Of Fax: 5/ cf 7)- -0 S- Pages: 7 Phone: Date: 3/-3 / /0 `7 Re: CC: o Urgent 0 For Review 0 Please Comment CI Please Reply 0 Please Recycle • Comments: c-( A ( 16 1300 E.Lookout Dr.,Suite 100 Richardson,TX 75082 P 972.680.2000 F 972.680.2007 PAGE 117 RCVD AT 3/3112009 5:14:33 PM[Central Daylight Time)"SVR:MIS-FAX0111 DNIS:200 CSID:9726802007"DURATION(mm-ss):01-50 03/ /2009 TUE 14: 19 FAX 9726802007 J. Stowe 6. Co. U002/007 ALTERNATIVE 60%140% CTC SCHEDULE 1 COSERV GAS,LTD. TEST YEAR ENDED JUNE 30,2008 RECOMMENDED REVENUE REQUIREMENTS COMPANY CONSULTANT CONSULTANT PROPOSED RECOMMENDED RECOMMENDED REVENUE REQUIREMENTS(1) ADJUSTMENT REVENUE REQUIREMENTS Operating Expenses $8,359,893 (:;289,722) $8,070,171 (2) Federal Income Taxes 2,477,883 I,186 5:5) 1,291,368 (3) Return on Investment 6,704,322 i3ii8 5,335,688 (4) Subtotal 17,542,098 14,697,227 State Margin Tax 206,849 (32.54n) 173,303 (5) Total Revenue Requirements(excluding Gas Cost Revenue Related Taxes) $17,748,947 (S2,:,'/671 i 7) $14,870,530 Sources (1)Calculated from Rate Filing Package,Schedule A (2)CTC Schedule 3 (3)CTC Schedule 5 (4)Calculated from CTC Schedule 2 and CTC Schedule 6 (5)Based on same proportional computations as Cosery State Margin Tax PAGE 217"RCVD AT 3131/2009 5:14:33 PM[Central Daylight Time]"SVR:MIS-FAX0111•DNIS:200 CSID:9726802007.DURATION(mm-ss):01-50 03/31/2009 TUE 14: 19 FAX 9726802007 J. Stowe & Co. 20 0 3/0 0 7 CTC SCHEDULE 2 COSERV GAS,LTD. TEST YEAR ENDED JUNE 30,2008 ORIGINAL COST OF INVESTED CAPITAL CONSULTANT COMPANY CONSULTANT RECOMMENDED INVESTED PROPOSED INVESTED CAPITAL(1) ADJUSTMENTS CAPITAL Plant in Service: Intangible Plant $22,686 $0 $22,686 Distribution Plant 67,772,190 $0 67,772,190 General Plant 1,279,883 $0 1,279,883 Gross Plant in Service 69,074,759 0 69,074,759 Reserve for Depreciation and Amortization 0 (5,719,730) (2) Net Plant in Service 63,355,029 0 63,355,029 Other Rate Base Items: Working Capital Deferred Carrying Costs on PHFU 8,541,385 0 8,541,385 Storage Gas 3,727,212 2,390,496 (3) Materials and Supplies 18,003 0 18,003 Prepayments 32,983 0 32,983 Cash Working Capital 633,382 0 Customer Deposits (7(“1,261) 0 44,251) Customer Advances (2,Z-M 0 (2,3873.21 Deferred FIT Depreciation Timing 3,925,516 0 3,925,516 Deferred FIT Interest 0 (2,1)18.621) Net Original Cost of Invested Capital $75,082,419 ($1,970,098) $73,112,321 Sources: (1)Rate Filing Package,Schedule B-1 (2)Rate Filing Package,WKP H-4-3 (3)CTC Schedule 7 PAGE 3/7*RCVD AT 3/3112009 5:14:33 PM[Central Daylight Time]"SVR:MIS-FAX0111 DNIS:200"CSID:9728802007"DURATION(mm-ss):01-50 03/31/2009 TUE 14: 20 FAX 9726802007 J. Stowe S Co. 0004/007 CTC SCHEDULE 3 COSERV GAS,LTD. TEST YEAR ENDED JUNE 30,2008 ADJUSTED O&M EXPENSE CONSULTANT CONSULTANT COMPANY RECOMMENDED RECOMMENDED PROPOSED(1) ADJUSTMENT(2) O&M EXPENSE Distribution Operations Expense $1,001,381 $988,397 Distribution Maintenance Expense 624,541 ($4,804) 619,737 Customer Accounts Expense 2,202,585 (S219,970) 1,982,615 Customer Information Expense 45,537 $0 45,537 Sales Expense 60,154 ($1,872) 58,282 Administrative and General Expense 1,955,428 ($19,176) 1,936,252 Total Operating Expense 5,889,626 (2b8,806) 5,630,820 Depreciation Expense 2,127,075 0 2,127,075 Taxes Other Than Income 343,192 (30,916) (3) 312,276 Total Expense Before FIT $8,359,893 (5289,722) $8,070,171 Sources: (1)Calculated from Company Response to Cities RFI 1-9 (2)CTC Schedule 4 (3)Calculated from Rate Filing Package Schedules A-6 and A-10 and Company Confidential Workpaper,WKP A-2-4_2 PAGE 4/7"RCVD AT 3/3112009 5:14:33 PM[Central Daylight Time]"SVR:MIS-FAX0111 DNIS:200 CSID:9726802007"DURATION(mm-ss):01-50 03/31/2009 TUE 14: 20 FAX 9726802007 J. 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U006/007 ALTEmmATNE0V%/4V% CTC SCHEDULE oOosww GAS, LTD, ADJUSTMENT To PRO FORMA FEDERAL INCOME TAX TEST YEAR ENDED JUNEo0. 2UV8 Consultant Recommended Rate Baae(1) $73.112.321 Percentage Equity(2) 3.280Y4 Taxable Component ofReturn 2.398.084 Federal Income Tax Rate(3) 35,0096 Adjusted Tax Rate (35.DO%/6588%)<8) 50.850096 Consultant Recommended Federal Income Tax $1.281.368 Sources: (1) CTC Schedule 2 (2) CTC Schedule 6 (3) Rate Filing Package, Schedule*'1 03/31/2009 ToE 14' 20 FAX orzoouzoo/ J. Stowe o Co. 0007/007 ALTERNAT[VE6U%/4O% CTC SCHEDULE 8 COSERV GAS, LTD. CONSULTANT RECOMMENDED COST OFCAPITAL (1) (1) (1) COMPANY CONSULTANT CONSULTANT COMPANY PROPOSED PROPOSED PROPOSED CAPITAL COST OF CAPITAL COSTOF STRUCTURE CAPITAL STRUCTURE CAPITAL Debt 442096 2.800Y6 60,00Y6 4,01096 Preferred SVnoh 0,20% 0,01096 0.00Y6 0.000% Common Equity 55�6096 0.120% 40.00% 1280% (2) 100.00% 8.33% 100.00% 7.297$% Weighted Cost of Capital 8.33% 7.30Y6 Sources: (1) Rate Filing Package, Schedule F'1 (2) Based on Municipal Bonds auofMarch 5, 2OO9 plus 2OO basis points ALTERNATIVE 50%/50% CTC SCHEDULE 1 COSERV GAS,LTD. TEST YEAR ENDED JUNE 30,2008 RECOMMENDED REVENUE REQUIREMENTS COMPANY CONSULTANT CONSULTANT PROPOSED RECOMMENDED RECOMMENDED REVENUE REQUIREMENTS(1) ADJUSTMENT REVENUE REQUIREMENTS Operating Expenses $8,359,893 ($289 722) $8,070,171 (2) Federal Income Taxes 2,477,883 (863,673) 1,614,210 (3) Return on Investment 6,704,322 (1.258.714) 5,445,608 (4) Subtotal 17,542,098 t2,412,109) 15,129,989 State Margin Tax 206,849 (28.443) 178,406 (5) Total Revenue Requirements(excluding Gas Cost Revenue Related Taxes) $17,748,947 ($2,440 551) 515,308,396 Sources: (1)Calculated from Rate Filing Package,Schedule A (2)CTC Schedule 3 (3)CTC Schedule 5 (4)Calculated from CTC Schedule 2 and CTC Schedule 6 (5)Based on same proportional computations as Cosery State Margin Tax CTC SCHEDULE 2 COSERV GAS,LTD. TEST YEAR ENDED JUNE 30,2008 ORIGINAL COST OF INVESTED CAPITAL CONSULTANT COMPANY CONSULTANT RECOMMENDED INVESTED PROPOSED INVESTED CAPITAL(1) ADJUSTMENTS CAPITAL Plant in Service: Intangible Plant $22,686 $0 $22,686 Distribution Plant 67,772,190 $0 67,772,190 General Plant 1,279,883 $0 1,279,883 Gross Plant in Service 69,074,759 0 69,074,759 Reserve for Depreciation and Amortization (5,719730) 0 (5,719730) (2) Net Plant in Service 63,355,029 0 63,355,029 Other Rate Base Items: Working Capital Deferred Carrying Costs on PHFU 8,541,385 0 8,541,385 Storage Gas 3,727,212 1,336,716) 2,390,496 (3) Materials and Supplies 18,003 0 18,003 Prepayments 32,983 0 32,983 Cash Working Capital 633,382 (633,382) 0 Customer Deposits (744,251) 0 (744,251) Customer Advances (2,388,219) 0 (2.388,2 ) Deferred FIT Depreciation Timing 3,925,516 0 3,925,516 Deferred FIT Interest (2,018.621) 0 (2.018.621) Net Original Cost of Invested Capital $75,082,419 ($1,970,098) $73,112,321 Sources: (1)Rate Filing Package,Schedule B-1 (2)Rate Filing Package,WKP H-4-3 (3)CTC Schedule 7 CTC SCHEDULE 3 COSERV GAS, LTD. TEST YEAR ENDED JUNE 30. 3008 ADJUSTED O&M EXPENSE CONSULTANT CONSULTANT COMPANY RECOMMENDED RECOMMENDED PROPOSED(1) ADJUSTMENT(2) O&M EXPENSE Distribution Operations Expense $1.001.381 $888.387 Distribution Maintenance Expense 024.541 (S4.004) 618.787 Customer Accounts Expense 2.202.585 1.802.615 Customer Information Expense 45.537 $O 45.537 Sales Expense 50.154 ($1.072) 58.282 Administrative and General Expense 1.855.428 ($/9.176) 1.936.252 Total Operating Expense 5.888.026 (258.806) 5.630.820 Depreciation Expense 2.127.075 O 2.127.075 Taxes Other Than Income 343.192 (30,916) (3) 812.270 Total Expense Before FIT $8.859.883 ($289.722) $8.070.171 Sources: (1)Calculated from Company Response 0z Cities RF| 1'8 (2)CTC Schedule 4 CTC SCHEDULE 4 COSERV GAS,LTD. ADJUSTMENT TO PRO FORMA O&M EXPENSES TEST YEAR ENDED JUNE 30,2008 (1) (2) (3) (4) (14) Customer Records Interest on Total Adjustment No Particulars Amount Payroll Adjustment Meter Reading and Collections Customer Deooelts To OEM Exoense DISTRIBUTION OPERATION EXPENSES 870 Operation supervision and engineering. $ 250,559 6T7 VV°1 is1 TUT( $248,975 871 Distribution load dispatching 5,470 I$2fi+1 i $5.179 874 Mains and services. 159,840 $103 $103 $159,943 875 Measuring and regulating station--General. $0 $408,383 876 Measuring and regulating station—Industrial $0 $665 877 Measuring and regulating station--City gate check stations. 408,383 $0 $13,438 878 Meter and house regulator. 665 ;a7 z'-3s) (57,0.1/C $64,311 879 Customer installations. 13,438 2 i627 - , 880 Other- 72,160 5555W, - tAREF! 881 Rents. 626 $0 #REF! Subtotal Distribution Operation Expenses $ 911,141 ( (-1(LU[ 0 0 0 )?Te-.y #REF! DISTRIBUTION MAINTENANCE EXPENSES 885 Supervision and engineering. $ 5,738,408 £f(5(21 (St TILT $5,737,396 886 Structures and improvements. $0 $0 887 Mains. - ._ (53.54 $59,713 889 Measuring&regulating station equipment--General. 60,065 ($796) . �F�n =m:sir.) 890 Measuring&regulating station equipment--Industrial. a$0 $96 891 Measuring&regulating station equipment—City gates. - i7(4, 1577I4 ($71 0) 892 Services. 96 498 $498 $498 893 Meters arid house regulators. - i 13N0'1 15+}30} #REF! 894 Other equipment - (T,.i.i(C) #REF! Subtotal Distribution Maintenance Expenses $ 5,798,569 .=.XT4i 0 0 0 )4,804( #REF! CUSTOMER ACCOUNTS EXPENSES 901 Supervision. $ 1,573,970 57, 7 $1,573,137 902 Meter reading expense. 0 I7'.0', (1601557( (;1c7.TX' (Viol.214) 903 Customer records and collection expense. - 252 (SL,OTS) _ io I U/i ._. 42) 904 Uncollectible accounts. 57,610 $0 $57,610 905 Miscellaneous customer accounts expenses - $0 $0 Subtotal Customer Accounts Expense $ 1,631,580 it.3r('] (1(55490: (52:7.95j 0 ,..1T.T7T1 1,411,610 CUSTOMER SERVICE AND INFORMATIONAL EXPENSES 907 Supervision $ - $0 $0 908 Customer assistance expenses - $0 $0 909 Informational and instructional advertising expense - $0 $0 910 Miscellaneous customer sei vice and information expense - $0 $0 Subtotal Customer Service and Informational Expenses $ - 0 0 0 0 SALES EXPENSE 911 Supervision $ - (I372'i ,51.03? 912 Demonstrating and selling expense - $0 $0 913 Advertising expense $0 $0 916 Miscellaneous sales promotion expense. $0 $0 Subtotal Sales Expense $ - L1.872) 0 0 0 -'!lily Il5121 ADMINISTRATIVE AND GENERAL EXPENSES 920 Administrative and general salaries. $ - ie541>II ?$?I7.4 1? {5, ,izlil 921 Office supplies and expenses. 116,313 $0 $116,313 922 Capitalized Corporate Overhead - $0 $0 923 Outside services employed. - $0 $0 924 Property insurance. - $0 $0 925 Injuries and damages. - ($1,715) (57.7'FI ($I7(5? 926 Employee pensions and benefits. - $0 $0 928 Regulatory commission expense. - $0 $0 930.1 General advertising expenses. - $0 $0 930.2 Rents - $0 $0 932 Maintenance of general plant. - $0 $0 Subtotal Administrative&General Expenses $ 116,313 415r.,7oi 0 0 0 O,176) 97,137 Interest on Customer Deposits 34,905 Total Operating&Maintenance Expenses $ 8,492,508 $ (40,213) $ (166,499) $ )52,095) $ - $ (258,806) #REF; Sources: (1)Calculated from Company Response to Cities RFI 1-9 (2)Calculated from Company Confidential Workpapers,WKP A-2-2_2 (3)Calculated from Company Confidential Workpapers WKP J-8-1d (4)Calculated from Company change in annual expense relative to change in customers ALTERNATIVE 50%150% CTC SCHEDULE 5 COSERV GAS, LTD. ADJUSTMENT TO PRO FORMA FEDERAL INCOME TAX TEST YEAR ENDED JUNE 30, 2008 Consultant Recommended Rate Base(1) $73,112,321 Percentage Equity(2) 4.100% Taxable Component of Return 2,997,605 Federal Income Tax Rate(3) 35.00% Adjusted Tax Rate(35.00%/6598%)(3) 53.8500% Consultant Recommended Federal Income Tax $1,614,210 Sources: (1)CTC Schedule 2 (2)CTC Schedule 6 (3)Rate Filing Package, Schedule H-1 ALTERNATIVE 50%/50% CTC SCHEDULE 6 COSERV GAS, LTD. CONSULTANT RECOMMENDED COST OF CAPITAL (1) CO (1) COMPANY CONSULTANT CONSULTANT COMPANY PROPOSED PROPOSED PROPOSED CAPITAL COST OF CAPITAL COST OF STRUCTURE CAPITAL STRUCTURE CAPITAL Debt 44.20% 2.800% 50.00% 3.348% Preferred Stock 0.20% 0.010% 0.00% 0.000% Common Equity 55.60% 6.120% 50.00% 4.100% (2) 100.00% 8.93% 100.00% 7.4483% Weighted Cost of Capital 8.93% 7.45% Sources: (1) Rate Filing Package, Schedule F-1 (2) Based on Municipal Bonds as of March 5, 2009 plus 200 basis points