08261996 Regular Meeting - Laserfiche WebLink

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75 Regular Meeting August 26-, 1996 Page 4 should address Mr. McNair's concerns with the rate structure. Mr. Guerra moved for approval of the ordinance on first reading and Mr. Cox seconded the motion. Mayor Moore responded it will take a rate specialist to address Mr. McNair's concerns with equity because the rate structure is complicated. Mr. Gilley stated the rate structure for duplexes has been in place for years, and the historic logic that was applied when the most recent rate structure was put in place was multi-family residential was treated as commercial property, and that applies also to large apartment complexes with master meters. It also applies to duplexes, and there is clearly a distinction between a duplex and a 200-unit apartment complex. When the rate structure was put in place, that distinction was not made because they were both considered to be commercial enterprises. Since this is the first reading, Staff could use our rate model to evaluate the impact of looking what change this would make if, for instance a 16000 gallon cap for duplexes is appropriate methodology, then this could be applied to our data to determine the impact. Mayor Moore suggested 16000, 18000 and 20000 be applied. Ms. Hughson asked which meter size applies to duplexes. Mr. Gilley stated the commercial rate is not on this list, only residential, and then added under maximum bill, "no additional charge will be applied to single-family residential customers for volumes in excess of 8000 gallons," which means everyone else would nbt have caps. Ms. Hughson stated Mr. McNair's concern was in regard to the cap and not the minimum, and did not understand why a duplex is not just double the regular residential rate. Mr. Cox stated he was not suggesting the rate be changed, but Mr. McNair should be provided the rationale and let us all digest this. The Council voted unanimously for approval of the ordinance on first reading. Mr. Cox stated this is the Council's first of three readings and Staff has been asked to provide additional data. Mr. Hart stated water and wastewater rates have been subsidized prior to the Council implementing the new rate structure, and Mr. Gilley stated the wastewater rates were being subsidized by the water rates prior to this new rate structure. Mr. Hart stated he had discussed this matter with Mr. Higgs and others and there was agreement this is not a desirable situation to be in. Mr. Guerra commented if adjustments are made for one group, then another group will have to pay for the difference to reach the budget built on a 28 percent increase, and Mr. Gilley responded that is correct. Mayor Moore introduced a public hearing regarding amendment to the On-Site Sewage Facilities ordinance, the caption which was read as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, AMENDING ARTICLE 3 OF CHAPTER 86, UTILITIES, OF THE SAN MARCOS CITY CODE BY ADDING DIVISION 3, ON-SITE SEWAGE FACILITIES; INCLUDING PROCEDURAL PROVISIONS; AND PROVIDING FOR PENALTIES. Mayor Moore noted this is a public hearing only. Mayor Moore opened the public hearing and asked if anyone wished to speak. No one wished to speak, so Mayor Moore closed the public hearing. Mr. Gilley stated the public hearing is allowing the City to act as an agent for TNRCC for the inspection services on these facilities. The Ordinance before you is already in place and enforceable by the City, but in order for it to have a force with TNRCC, it requires this particular procedure outlined in the Council's packet, the public hearing, TNRCC's approval and subsequent adoption by Council. Mayor Moore stated Environmental Services has been using the Ordinance but has not been delegated that authority by TNRCC formally, and Mr. Gilley responded that is correct, although he was not sure if the ordinance had the force of law and penalty behind it. Mr. Gilley stated the purpose of the Ordinance is a health and safety issue solely for the purpose of making sure the disposal of sanitary wastes is done in the most efficient and sanitary method possible. Septic systems are fine when they work and a health hazard when they do not function properly. Ms. Hughson stated if