HomeMy WebLinkAboutORD 99-16 - Econ Dev Electric RateORDINANCE •'
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN,
TEXAS, PROVIDING FOR THE ADDITION OF SECTION 13.04.068 "ECONOMIC
DEVELOPMENT RATE", TO CHAPTER 13.04 UTILITY SERVICE RATES AND
CHARGES OF THE MUNICIPAL CODE OF THE CITY OF GEORGETOWN
TEXAS; REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS;
INCLUDING A SEVERABILITY CLAUSE; AND ESTABLISHING AN EFFECTIVE
DATE.
WHEREAS, the City of Georgetown, as a public power city, established its current electric rates
in 1991;
WHEREAS, Chapter 380 of the Local Government Code authorizes the City to engage in a wide
range of economic development activities; and
WHEREAS, commercial and industrial electric customers contribute positively to the City's
overall electric load factor;
WHEREAS, high electric load factors lower the wholesale cost of electric power for the entire
city;
WHEREAS, the City of Georgetown wishes to attract high electric load customers to
Georgetown;
WHEREAS, the ability to lower start-up, relocation, and expansion costs through an incentive
package increases the attractiveness of relocating, starting -up or remaining in Georgetown; and
WHEREAS, The City Council of the City of Georgetown wishes to create an economic
development (ED) electric rate which charges for wholesale power at actual costs charged to the
City of Georgetown by LCRA or any other wholesale electric provider plus a customer charge of
$300.00 per month, and have this new rate effective upon publication of this ordinance and in
accordance with the City's charter.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
GEORGETOWN, TEXAS, THAT.
SECTION 1. The facts and recitations contained in the preamble of this ordinance are hereby
found and declared to be true and correct, and are incorporated by reference herein and expressly made a
part hereof, as if copied verbatim. The City Council hereby finds that this ordinance implements the
following policy of the Century Plan - Policy Plan Element:
1. Finance Policy End 5.0, which states: "All municipal operations are conducted
in an efficient business -like manner and sufficient financial resources for both short-
term and long-term needs are provided", and
Electric Rate Ordinance No. 7
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2. Utilities / Energy Policy End 14.0, which states: "Georgetown's utility systems
provide safe and reliable service which meets the needs of all citizens and promotes the
economic health of the community,"
and further finds that the enactment of this ordinance is not inconsistent or in conflict with any other
Century Plan Policies, as required by Section 2.03 of the Administrative Chapter of the Policy Plan.
SECTION 2. Chapter 13.04 "Utility Service Rates and Charges", Article I of the Code of
Ordinances of the City of Georgetown, Texas is hereby expanded to include the following:
13.04.06$ Economic Development (ED) Rate
A. Availability. Applicable to electric customers:
1. Whose relocation, start-up or expansion will create new local jobs or will result in
significant capital investment (both real and personal). Scheduled or certified
verifications of job creations and capital investment will be required for the term of the
rate. The period for which the ED rate maybe offered will be directly tied to job creation
or capital investment as charted below:
Capital Investments (OR i
No. of Full-time Permanent
Number of Years Eligible for
Jobs Created
ED Rate
500,000 to 1,000,000
15 to 25
1
1,000,001 to 2,500,000
26 to 50
2
2,500,001 to 7,500,000
51 to 75
3
7,5005001 to 10100000
76 to 100
4
10,000,001 and up
101 and up
5
2. Who have a minimum load factor threshold of at least 45% for at least 6 months of the
year.
B. Net Monthly Rate.
1. Customer Charge: $300.00 per month.
2. Wholesale power will be charged at actual costs charged to the City of Georgetown by
LCRA or any other wholesale electric provider.
C. Sales Tax. Sales taxes, where applicable, will be charged to the consumer in addition to the
above rates.
D. Miscellaneous Terms,
1. Customers receiving the ED rate must contract to purchase power from the City of
Georgetown for a period equal to the number of years that the customer was offered the ED
rate plus five years.
Electric Rate Ordinance No. � 1" /
lor
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2. Any customer wishing to prematurely terminate the contractual agreement must pay an
exit fee equal to the amount of savings the customer earned from actual usage of the ED rate
plus recovery of any capital investment not recovered through the rates. The rate savings
will be based on the difference between the ED rate and the rate which would have otherwise
been charged to the customer.
The City Manager or his designee will determine recipients of this rate consistent with city policy.
Service rendered under this rate is subject to the City's rules and regulations.
SECTION 3. The rate is effective after publication and in accordance with the City's charter.
SECTION 4. All ordinances and resolutions, or parts of ordinances and resolutions, in conflict
with this Ordinance are hereby repealed, and are no longer of any force and effect.
SECTION 5. If any provision of this ordinance or application thereof to any person or
circumstance, shall be held invalid, such invalidity shall not affect the other provisions, or application
thereof, of this ordinance which can be given effect without the invalid provision or application, and to
this end the provisions of this ordinance are hereby declared to be severable.
SECTION b. The Mayor is hereby authorized to sign this ordinance and the City Secretary to
attest. This ordinance shall become effective and be in full force and effect in (10) ten days on and after
publication in accordance with the provisions of the Charter of the City of Georgetown.
PASSED AND APPROVED on First Reading on the 23rd day of February, 1999.
PASSED AND APPROVED on Second Reading on the 23rd day of March, 1999.
ATTEST:
Sandra D. Lee
City Secretary
VED AS TO FORM:
Marianne Landers Banks
City Attorney
Electric Rate Ordinance No.
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THE CITY OF GEORGETOWN:
By: `Leo Wood
Mayor