CHAPTER 50: GENERAL UTILITY PROVISIONS

Section
General Provisions
50.01 Liability disclaimer

Water and Sewer Lines; Extensions Beyond City Limits
50.15 Petition; requirements
50.16 Installation; costs borne by owner
50.17 Reimbursement
50.18 Unused tap or meter; fee applies

Water and Sewer Rates and Charges
50.30 Definitions
50.31 Demand charges
50.32 Water usage rates
50.33 Sewer service usage fees
50.34 Additional water charges

Cross-reference:
Billing and collection; sewers, see §§ 52.45 et seq.
Billing and collection; water, see §§ 51.15 et seq.
Industrial waste surcharges, see § 52.34 and Chapter 52 Appendix
New sewer connection; tap fee, see § 52.17
Statutory reference:
Municipal water system, see Tex. Loc. Gov’t Code, §§ 402.015 and 402.016
Public utilities, see Tex. Rev. Civ. Stat., Art. 1106 et seq.
Water generally, see Tex. Water Code, §§ 1.001 et seq.
McGregor - Public Works 4

GENERAL PROVISIONS

§ 50.01 LIABILITY DISCLAIMER.
The city shall not be liable for any damage to the property of any consumer of any utility service
furnished by the city due to backflow of the sewerage system or any other cause outside the direct control of the city.
(Prior Code, § 21-1)

WATER AND SEWER LINES; EXTENSIONS BEYOND CITY LIMITS

§ 50.15 PETITION; REQUIREMENTS.
(A) Any and all requests for extensions of water or sewer lines beyond the corporate limits of the city
must be accompanied by a petition for annexation of the property to the city if the property is contiguous to the city limits of this city. If the property is not contiguous to the corporate limits of the city, the applicant for extension must state that he or she will petition for annexation when and if the property becomes contiguous to the corporate city limits. In either case, if the request is for an extension outside the corporate limits, the City Council will decide whether the extension will be granted on a case by case basis.

(B) Extension of the sewer system outside the city limits will be made only if the customer is purchasing city water and will be decided by the City Council on a case by case basis.
(Prior Code, § 21-18)

§ 50.16 INSTALLATION; COSTS BORNE BY OWNER.
Properties outside the city limits but within the extraterritorial jurisdiction of the city that desire to be served by city water or sewer shall pay all costs of installing that water or sewer system. The system shall be installed in accordance with city guidelines and under the supervision of city personnel. If not so
installed, will not be accepted by the City Council as part of the corporate water system. The property
owner or owners shall pay all labor and ditching costs and, if required, reimburse any prior water contract holders as may be required under their contract, pay for all costs of equipment, including pipes and fitting, and will pay a minimum of 150% of the cost of the city water tap for all taps on those lines outside the city limits. The ability of owners of property to pay their cost or costs and will receive a refund to be equal to, but not greater than 100% of their participation in the cost of materials in installing the line. The right to receive reimbursement as determined in § 50.17 below shall be for a period of five years from the date the line is accepted by the city, and these refunds will be made annually during the last two months of each calendar year for the preceding fiscal year of the city. If the funds subject to refund remain uncollected by the person to whom they are due for one year, after the end of the five-year period, they will become property of the city.
(Prior Code, § 21-18)

§ 50.17 REIMBURSEMENT.
(A) Reimbursement to property owners and their cost of installing a line shall be as follows.

(1) A formula will be used by the city to determine the cost of the line.

(a) “A” as in the formula is equal to the total labor costs for ditching, tunneling, boring, and laying the pipeline, plus any costs required for reimbursement of previous water contracts;

(b) “B” will be the cost of all materials used in pipes or fittings for the water contract; and

(c) “C” is equal to the cost of the water tap for the people on this water line outside the city limits which shall be equal to at least 150% of the cost of the water tap within the city limits.

(2) To arrive at the cost to an individual property owner for the installation of a water line, which cost shall be 100% of the cost of installation with no cost to be borne by the city, the following formula is used:

(A / Number of taps originally installed)
+ (B x Front footage of each individual property owner / Total number of front feet)
+ (C x Number of taps each individual property owner takes)

(3) The above formula will determine each individual property owner’s cost for extending the water or sewer main.

(B) As stated above, each property owner shall be entitled to receive reimbursement on a pro rata
basis for his or her costs or share in participating in the installation of the water or sewer line in an amount equal to 100% of the cost of pipes and fittings (“B” in the above referenced formula). He or she shall receive this reimbursement in the following manner: all new taps on the line installed hereunder shall be charged a fee of $500, plus 150% of the charge the city makes for taps on lines in the city or 150% of the actual cost of installation. After the city deducts 150% of what it charges for installing a water tap within the city limits or 150% of the actual cost of installation, the remaining amount paid for the tap will be held by the city in an account for the benefit of all of the original developers. On an annual basis as explained above, the funds so held will be distributed by the city to the appropriate participants. By holding the funds, the city incurs no liability and shall not be responsible to the individual owners for failure to properly apply or prorate the funds. The amount each owner will receive on a pro rata basis will be determined by arriving at a percentage which will be the percentage determined in the division above dealing with the individual cost per property owner to the total cost of the entire project.
(Prior Code, § 21-18)

§ 50.18 UNUSED TAP OR METER; FEE APPLIES.
Any property owner in the original development and any additional persons who may purchase water
meters or taps from the city shall pay the minimum fee as established by the Standard Water Rate
Ordinance of the city as it is amended, whether or not they use the meter or tap they have reserved or have installed. This fee will be charged just for the privilege of having access and a right to receive a water tap or water from the system.
(Prior Code, § 21-18)

WATER AND SEWER RATES AND CHARGES

§ 50.30 DEFINITIONS.
For the purpose of this subchapter, the following definitions shall apply unless the context clearly
indicates or requires a different meaning.

COMMERCIAL CUSTOMERS. Those customers who receive water/sewer service from the city at a minimum based upon the one inch or larger water meter at any business establishment.

RESIDENTIAL CUSTOMERS. Those customers who receive water/sewer service from the city
through a three-quarters inch or larger water meter at a single-family dwelling, duplex, or apartment not
larger than four units. RESIDENTIAL CUSTOMERS desiring larger meters will be charged based upon meter size.
(Ord. passed 12-9-2002)

§ 50.31 DEMAND CHARGES.
Effective January 1, 2003, residential customers and commercial customers shall pay the following
monthly water and sewer demand/customer charges.

(A) Water demand charges.

(B) Sewer demand charges.

(1) Residential: $11.95; or

(2) Commercial: $17.95.
(Ord. passed 12-9-2002)

§ 50.32 WATER USAGE RATES.
Effective January 1, 2003, residential customers and commercial customers shall pay the following
volume water rates.

(Ord. passed 12-9-2002)

§ 50.33 SEWER SERVICE USAGE FEES.
(A) Basis. Sewer fees shall be based upon water consumption for the months of December, January,
and February, as determined by meter readings. These fees shall be calculated each year, becoming
effective on the billing for the month of October.

(B) Residential. Effective January 1, 2003, for sewer service, residential customers shall pay $1.27
per each 1,000 gallons of water usage, with a minimum charge of $2.54 per month for residential sewer
service. The maximum monthly residential sewer service fee shall be $27.19.

(C) Commercial. Effective January 1, 2003, for sewer service, commercial customers shall pay $1.27
per each 1,000 gallons of water usage.
(Ord. passed 12-9-2002)

§ 50.34 ADDITIONAL WATER CHARGES.
The following rules shall apply to the city’s waterworks system and service.

(A) Water rates for schools, churches, and charitable organizations shall be the same as the residential
rate inside or outside the city limits, as the case may be.

(B) The following tapping charges shall apply, which charges shall include all costs as determined
by the City Manager:

(1) Six inches by three-quarters inch water tap: $300;

(2) Six inches by one inch water tap: $400;

(3) Six inches by one and one-half inches water tap: actual cost of materials and labor for and
installation as determined by the City Manager;

(4) Six inches by two inches water tap: actual cost of materials and labor as determined by the
City Manager;

(5) Any tap across a road that involves cutting the road: an additional cost of not less than $100;
and

(6) The City Manager shall, not later than January 1 of each year, establish material costs for the
six inches by one and one-half inches and the six inches by two inches taps and adjust rates accordingly; and shall, as each person applies for additional taps, estimate actual labor cost to the best of his or her ability upon request.

(C) The developer shall pay for all water supply main extensions within the city limits.

(D) The city shall negotiate any water line extensions or rate outside the city limits.

(E) A water deposit of $100 shall be required of each new water customer. This is to be collected
before water shall be turned on for all new customers. All deposits of this type shall be refunded without
interest at termination of service, provided the consumer has paid all amounts due the city.

(F) A charge of $10 shall be assessed for each water turn-off or turn-on, not made necessary by the
consumer’s or user’s failure to pay charges to the city.

(G) Each water consumer shall be billed monthly. This bill shall also include the charges for sewer
service and garbage pick-up service, if applicable. This bill shall have no incentive for prompt payment
unless deemed necessary in the future, but all bills will be due within ten days after date.

(H) No service shall be provided outside the corporate limits of the city unless a request for that
service is submitted to the city in writing and approved by the City Council.
(Prior Code, § 21-16) (Am. Ord. passed 1-10-1994; Am. Ord. 25-30-A, passed 9-24-2001)