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Agenda 11/28 & 30/2001 S COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS AGENDA November 28, 2001 9:00 a.m. NOTICE: ALL PERSONS WISHING TO SPEAK ON ANY AGENDA ITEM MUST REGISTER PRIOR TO SPEAKING. SPEAKERS MUST REGISTER WITH THE COUNTY MANAGER PRIOR TO THE PRESENTATION OF THE AGENDA ITEM TO BE ADDRESSED. COLLIER COUNTY ORDINANCE NO. 99-22 REQUIRES THAT ALL LOBBYISTS SHALL, BEFORE ENGAGING IN ANY LOBBYING ACTIVITIES (INCLUDING, BUT NOT LIMITED TO, ADDRESSING THE BOARD OF COUNTY COMMISSIONERS), REGISTER WITH THE CLERK TO THE BOARD AT THE BOARD MINUTES AND RECORDS DEPARTMENT. REQUESTS TO ADDRESS THE BOARD ON SUBJECTS WHICH ARE NOT ON THIS AGENDA MUST BE SUBMI'R'ED IN WRITING WITH EXPLANATION TO THE COUNTY MANAGER AT LEAST 13 DAYS PRIOR TO THE DATE OF THE MEETING AND WILL BE HEARD UNDER "PUBLIC PETITIONS". ANY PERSON WHO DECIDES TO APPEAL A DECISION OF THIS BOARD WILL NEED A RECORD OF THE PROCEEDINGS PERTAINING THERETO, AND THEREFORE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. ALL REGISTERED PUBLIC SPEAKERS WILL BE LIMITED TO FIVE (5) MINUTES UNLESS PERMISSION FOR ADDITIONAL TIME IS GRANTED BY THE CHAIRMAN. IF YOU ARE A PERSON WITH A DISABILITY WHO NEEDS ANY ACCOMMODATION IN ORDER TO PARTICIPATE IN THIS PROCEEDING, YOU ARE ENTITLED, AT NO COST TO YOU, TO THE PROVISION OF CERTAIN ASSISTANCE. PLEASE CONTACT THE COLLIER COUNTY FACILITIES MANAGEMENT DEPARTMENT LOCATED AT 3301 EAST TAMIAMI TRAIL, NAPLES, FLORIDA, 34112, (941) 774-8380; ASSISTED LISTENING DEVICES FOR THE HEARING IMPAIRED ARE AVAILABLE IN THE COUNTY COMMISSIONERS' OFFICE. 1 November 28, 2001 PLEDGE OF ALLEGIANCE AGENDA ITEMS A. Presentation of the 2001 70070. Collier County Water Master Plan Update, Project B. Presentation of the 2001 Collier County Wastewater Master Plan Update, Project 73066. C. Review Proposed Reuse (Treated Wastewater) Rates. D. Review Proposed Water and Wastewater Rates. E. Review Proposed Water and Sewer Impact Fees. F. Budget Reconsideration. G. Impact Fee Analysis. H. PUD-Idea on Workforce Housing (Commissioner Fiala) I. Indigent Health Care Idea (Commissioner Fiala) J. Road System-Where to go from here (Commissioner Fiala) K. Legislative representation from Collier County to lobby Tallahassee (Commissioner Coletta) 2 November 28, 2001 L. Public Information (Commissioner Carter) M. Regular Agenda vs. Consent Agenda (Commissioner Carter) N. Staff Direction (latitude to investigate all possibilities and bring back multiple suggestions vs. narrow focus) (Commissioner Carter) O. Interdepartmental Teams including Legal Representation (Commissioner Carter) P. Prioritizing Board Member's Requests (Commissioner Carter) 3. PUBLIC COMMENTS 4 ADJOURN INQUIRIES CONCERNING CHANGES TO THE BOARD'S AGENDA SHOULD BE MADE TO THE COUNTY MANAGER'S OFFICE AT 774-8383. 3 November 28, 2001 EXECUTIVE SUMMARY PRESENTATION OF THE 2001 COLLIER COUNTY UPDATE, PROJECT 70070 WATER MASTER PLAN OBJECTIVE: Address infrastructure needed to support growth patterns in Collier County for the next five- and 20-year planning horizons; to look-ahead at growth-related issues for next twenty years; and approve the recommendations made in the 2001 Water Master Plan Update. CONSIDERATION: Larger and new water facilities are required to meet anticipated growth. Water and wastewater service area boundaries are anticipated to expand in the next five years. Recommended capital improvements are estimated to be $159 million over the next five years (2002 to 2006) and $765 million over the subsequent fifteen years (2007 to 2021). The recommended capital improvements are being considered as part of impact fee and user rate studies. The current Water Master Plan was last updated in 1996, with subsequent revisions made in 1998 and 2001, which identified infrastructure needs to meet growth anticipated through 2006. However, phenomenal growth has taxed the existing water infrastructure. The 2000 Census recognized Collier County as the second fastest growing area in the United states. On May 8, 2001, under Agenda Item 16(C)3, the Board approved Work Order GH-Fr-01-1 (Contract 00-3199) with Greeley and Hansen LLP for engineering services related to the 2001 Water and Wastewater Master Plan Updates. Greeley and Hansen LLP completed all the tasks and has submitted the 2001 Water Master Plan Update. The 2001 Water Master Plan Update includes recommended operational standards. A summary table is provided below comparing the current and the recommended minimum operational level of service standards given in the 2001 Water Master Plan Update. Operational Standard Current Recommended Fire Flow demand in gallons per minute (gpm) Residential 500gpm 500gpm Non-residential 750gpm 750gpm Flow Peaking Factors over Annual Average Daily Demand Peak Hour 2.6 2.6 Maximum Day 1.5 1.3 Minimum Day 0.5 0.5 Maximum Month None 1.2 Minimum Transmission Mains Pressure in pounds per square inch (psi) Peak Hour Flow 50psi 50psi Maximum Day with Fire Flow 40psi 40psi NOV 200 Executive Summary Presentation of The 2001 Water Master Plan Update Page 2 of 3 Copies of the 2001 Water Master Plan Update are available for viewing at the Collier County Public Utilities Engineering Department. FISCAL IMPACT: The 2001 Water Master Update recommends system improvements that will require the allocation of funding for capital projects in future years. These improvements are summarized as follows: 5-Year (2002-2006) Capital Improvement Projects Water: Recommendations total approximately $159 million over the five-year period. This includes the following major projects and estimated costs: · Design and construction of the South County Regional Water Treatm'ent Plant Expansions to 20 mgd Maximum Month Daily Demand (MMDD) -- $42,350,000 · Land acquisition for the proposed Northeast Water Treatment Plant -- $4,054,000. · Design and construction of three additional supply wells at the NCRWTP -- $4,340,000 · Design and construction of new transmission mains -- $14,879,000 · Design and construction of water transmission main relocations -- $11,697,000 · Purchase and installation of automatic meter read equipment -- $6,597,000 · Well replacement program-- $2,600,000 · Reverse osmosis membrane replacement -- $ 3,072,000 · Design and construction of upgrades to existing water transmission mains -- $8,008,000 · Design and rehabilitation of existing water system -- $8,317,000 20-Year (2007-2021) Capital Improvement Projects Water: Recommendations total approximately $765 million over the fifteen-year period This includes the following major projects and estimated costs: · Design, and construction of improvements to the water transmission system; · Design and construction of two new regional water treatment plants; · Design and construction of two expansions to the new regional water treatment plants; and · Design and construction of two new well-fields. Water system capital improvement funding is provided through a mix of impact fees, long-term bond financing, and state revolving fund loans. To ensure adequate funding, the impact of the recommended project expenditures will be considered in the impact fee and user rate fee studies. GROWTH MANAGEMENT IMPACT: The current level of service standard (LOSS) of 185 gallons per capita per day is recommended to be continued to be used. ~C.~4T£# Pr- ,,- Nov Executive Summary Presentation of The 2001 Water Master Plan Update Page 3 of 3 RECOMMENDATIONS: Staff recommends that the Board of County Commissioners, as the Ex-Officio Governing Board of the Collier County Water-Sewer District, review the 2001 Water Master Plan Update, provide direction to staff to make changes, if appropriate, and, then bring back the water master plan update back to the Board on December 11,2001 for adoption. PREPARED BY: ~-'.----' . d//'' :~. Date: Mohan V. Thampi, P.E., Senior Project Manager Public Utilities Engineering Department REVIEWED BY: Paul Mattausch, Water DireCtor Public Utilities Division Date: REVIEWED BY: pRu°~YliB/I~?li t i e ?~'n ~inE~;nD' }r; c;~; artment Date: APPROVED BY: 7~'' '~' &')~') Thomas G. Wides, Administrator Public Utilities Division Date: /' ]' f/''' / AG~ NOA IT£N ~0. Nov 2ool EXECUTIVE SUMMARY PRESENTATION OF THE 2001 COLLIER COUNTY WASTEWATER MASTER PLAN UPDATE, PROJECT 73066 OB~IECTIVE: Address infrastructure needed to support growth patterns in Collier County for the next five- and 20-year planning horizons; to look-ahead at growth-related issues for next twenty years; and approve the recommendations made in the 2001 Wastewater Master Plan Update. CONSIDERATION: Larger and new wastewater facilities are required to meet anticipated growth. Reclaimed water improvements are recommended to provide a more reliable source of irrigation water. Water and wastewater service area boundaries need to be expanded in the next five years. Recommended capital improvements for wastewater and reclaimed water are estimated to be $300 million over the next five years (2002 to 2006) and $543 million over the subsequent fifteen years (2007 to 2021). The recommended capital improvements 'are being considered as the basis for impact fee and user rate studies. The current Wastewater Master Plan was last updated in 1997, with subsequent revisions made in 1998 and 2001, which identified infrastructure needs to meet growth anticipated through 2006. However, phenomenal growth has taxed wastewater infrastructure, in particular the North County Water Reclamation Facility (NCWRF), which received wastewater flows exceeding its peak treatment capacity during the peak tourist season early this year. The 2000 Census recognized Collier County as the second fastest growing area in the United States. Because of high wastewater flows, the Florida Department of Environmental Protection (FDEP) placed the NCWRF under a consent order in April 2001, with one of the requirements of the consent order being to update the existing Wastewater Master Plan by October 1, 2001. The 2001 Wastewater Master Plan Update was submitted to FDEP on October 1,2001. On May 8, 2001, under Agenda Item 16(C)3, the Board approved Work Order GH-FT-01-1 (Contract 00-3199) with Greeley and Hansen IJ.P for engineering services related to the 2001 Wastewater Master Plan Update. Greeley and Hansen LLP completed all the tasks and has submitted the 2001 Update to the Wastewater Master Plan. The 2001 Wastewater Master Plan Update incorporates the findings of the Wastewater Resource Planning Report. The Board authorized the Wastewater Resource Planning Report on May 25, 1999, agenda item 16(B)(10), as Work Order CDM-FT-99-6 to Camp Dresser & McKee, Inc. (CDM). Under the original work order, CDM was to develop alternatives to balance seasonal demands for reclaimed water irrigation with available supply, identify necessary capital improvements, and develop a finance plan. On September 28, 1999, agenda item 8(B)(5), the Board heard an Interim Report of Reclaimed Irrigation Water Resource Planning Issues and Peak Irrigation Demand. The Board authorized staff to develop supplemental irrigation supply water sources to provide a more reliable irrigation service to reclaimed water reuse customers during dry weather. Staff directed CDM to provide ~lo.-~I'rtn NOV 2001 PG. _ ~ Executive Summary Presentation of the Page 2 of 4 2001 Wastewater Master Plan Update additional engineering services to incorporate supplemental water supply sources into the Wastewater Resource Planning Report. Copies of the 2001 Wastewater Master Plan Update and the Wastewater Resource Planning Report are available for viewing at the Collier County Public Utilities Engineering Department. FISCAL IMPACT: The 2001 Wastewater Master Update recommends system improvements that will require the allocation of funding for capital projects in future years. These improvements are summarized as follows: 5-Year (2002-2006) Capital Improvement Projects Wastewater: Recommendations total approximately $268 million over the five-year period. This includes the following major projects and estimated costs: · Design and construction of the North County Water Reclamation Facility (NCWRF) Expansion to 24.1-mgd Maximum Month Average Day Flow (MMADF) -- $40,320,000. Design and construction of the NCWRF Flow Equalization Basins -- $6,562,000. Design and Construction of Deep Injection Wells at the NCWRF -- $14,325,000. · Design and construction for the South County Water Reclamation Facility (SCWRF) Expansion to 16-mgd MMADF -- $47,645,000. · Design and construction of Deep Injection Well at the SCWRF -- $4,550,000. · Design and construction of North/South Service Area Sewer Interconnects -- $5,704,000. · Land acquisition, design and construction of the proposed Northeast County Water Reclamation Facility -- $14,700,000. · Land acquisition, design and construction of the proposed East Central Water Reclamation Facility -- $15,000,000 · Land acquisition for the proposed Southeast Water Reclamation Facility -- $4,000,000. Reclaimed Water: Recommendations total approximately $32 million over the five-year period. This includes the following major projects and estimated costs: · Design and construction of the Golden Gate Canal Supplemental Water System -- $4,385,000. · Design and construction of additional Aquifer Storage and Recovery (ASR) Reclaimed Water Wells -- $5,545,000. · Design and construction of North/South Service Area Reclaimed Water Interconnects -- $5,215,000. · Design and construction of Pelican Bay Fire/Irrigation Water System Improvements -- $5,580,000. NOV PG. Executive Summary Presentation of the 2001 Wastewater Master Plan Update Page 3 of 4 20-Year (2007-2021) Capital Improvement Proiects Wastewater: Recommendations total approximately $498 million over the fifteen-year period This includes the following major projects and estimated costs: · Improvements to the North and South County Water Reclamation Facilities · Design and construction of the Water Reclamation Facility Interconnects · Design and construction of expansions to the proposed Northeast, East Central and Southeast County Water Reclamation Facilities. Reclaimed Water: Recommendations total approximately $45 million over the fifteen-year period. This includes the following major projects and estimated costs: · Design and construction of the Supplemental Reclaimed Water Facilities · Design and construction of additional Aquifer Storage and Recovery (ASR) Facilities · Design and construction of Reclaimed Water Transmission Mains Wastewater system capital improvement funding is provided through a mix of impact fees, long- term bond financing, and state revolving fund loans. To ensure adequate funding, the impacts of the recommended project expenditures are included in the impact fee and user rate fee studies. GROWTH MANAGEMENT IMPACT: Per capita sewer flows used in the 2001 Wastewater Master Plan departs from the current Level of Service Standard (LOSS) in the County's Comprehensive Growth Management Plan as follows: Current LOSS 2001 WW Master Plan Update LOSS North Sewer Service Area, 145 145 gallons per capita per day South Sewer Service Area, 120 100 gallons per capita per da7 New Sewer Service Areas, -- 120 gallons per capita per day The decrease in the South Service Area LOSS reflects the actual measured wastewater flows and the 2000 Census population for the South Service Area. The LOSS in the County's Comprehensive Growth Management Plan is recommended to be changed accordingly. RECOMMENDATIONS: Staff recommends that the Board of County Commissioners, as the Ex-Officio Governing Board of the Collier County Water-Sewer District, review the 2001 Wastewater Master Plan Update, provide direction to staff to make changes, if appropriate, and then bring the master plan update back to the Board on December 11, 2001 for adoption. NOV 2001 Executive Summary Presentation of the 2001 Wastewater Master Plan Update Page 4 of 4 PREPARED BY: ~/~/-/'/~ ////~ ,~t-~t¢,,.---- Date: Mohan V. Thampi, P.E., Senior Project Manager Public Utilities Engineering Department REVIEWED BY: Joe Cheatham, Wastewater Director Public Utilities Division Date: ,,/;/o, REVIEWED BY.Roy Anderson, P.., ' /~i ~'~~Dlrector Public Utilities Engineering Department APPROVED BY: Thomas G. Wides, Interim Administrator Public Utilities Division Date: Date: NOV 2001 EXECUTIVE SUMMARY REVIEW PROPOSED REUSE (TREATED WASTEWATER) RATES OBJECTIVE: Board of County Commissioners review, discuss and provide staff direction for proposed reuse water rates. Request for adoption of the proposed rates will come back to the Board on December 11, 2001 after modifications (if any) are made per Board direction. CONSIDERATIONS: In conjunction with the development of the Wastewater Master Plan, the Collier County Water-Sewer District has updated the Wastewater Resource (Reuse) Master Plan. Reuse is a critical part of the Water-Sewer District goals and objectives as defined by the Board of County Commissioners. The intent of the District with regards to reuse water is to: · Conserve potable water supplies · Promote the use of treated wastewater for irrigation · Provide a reliable source of non-potable water for irrigation · Develop an equitable rate structure for the reuse users The proposed rates are designed to charge reuse customers for only the operating and repair and replacement capital costs associated with the delivery system for treated wastewater. The operating and capital costs associated with the collection and treatment of wastewater are part of the water and wastewater rates proposed in the previous Executive Summary. The following graph defines the current and proposed rate structure per thousand gallons of consumption by Level of Service for reuse customers. PROGRAM RATES Level of Service Rates for 1,000 Gallons Current Rate Proposed at Actual Cost Difference Pressurized and Distributed $0.13 $0.65 ($0.52) Pressurized $0.13 $0.34 ($0.21) Bulk $0.13 $0.26 ($0.13) NOVo% ?.001 pg. [ C :\Documents and Settings~brock_m\Local Settings\Temporary I nternet Files\OLK2~RevReuse Rates.docl 1 i1 = 2001 10:57 AM Historically, the reuse rates had been set at 6¢ per 1,000 gallons in August, 1990 and later increased to 13¢, per 1,000 gallons in September, 1997. The 13¢ rate was established as a negotiated rate based on District requirements for: · EPA Grant requirements · Potable water conservation · Developer design and installation irrigation. of pressurized reuse system for The growth and use of pressurized and distribution type system has increased, significantly, the operating and capital costs of the delivery system. The Board presentation will identify the proposed minimum rates allowable for recovery of operating and capital costs for the reuse delivery system. GROWTH MANAGEMENT PLAN: There is no Growth Management impact. FISCAL IMPACT: Adoption of the proposed rates will generate an anticipated $2.2 million per year in revenue which will cover current operating and maintenance costs. The $2.2 million is included in the proposed water and wastewater rate structure. The current rate generates approximately $500,000 per year. RECOMMENDATION: The Board of County Commissioners review the proposed reuse rates, provide direction to staff to make changes, if appropriate, and direct staff to prepare an advertised public hearing on December 11, 2001 for the Board of County Commissioners to adopt a resolution approving the rates with an implementation date of January 1,2002. John A. Yonkosky, Di~ctor Utility Billing and Customer Service Approved by: T(~m Wides, Interim Administrator Public Utilities Division Date; Ja~es V. Mudd, Deputy County Manager AGENDA ITEM Pg. ~ C:\Documents and Settings~rock_rn\Local Settings\Temporary I nternet Files\OLK2RRevReuseRates,docl 1/15/2001 10:57 AIr EXECUTIVE SUMMARY REVIEW PROPOSED WATER AND WASTEWATER RATES OBJECTIVE: Board of County Commissioners review, discuss and provide staff direction for proposed water and wastewater rates. Request for adoption of the proposed water and wastewater rates will come back to the Board on December 11,2001 after modifications (if any) are made per Board direction. CONSIDERATIONS: In Fiscal 2000, the billing rate structure was modified to combine residential, multi-family and commercial rates into one billing process. There was a minor reduction in rates as a result of this action. (1.0% for water and 2.0% for wastewater). The last formal review and substantive rate structure change took place in 1997. The current rates have been in use for over four (4) years. The County's exceptional growth in the past four (4) years, in conjunction with the expansion of the Water-Sewer District service area as contemplated in the Rural Frinqe Area Assessment Conceptual Strateqies indicates that certain proactive measures should be taken by the Board of County Commissioners in order to match capacity with future needs. Five of the proactive measures as they relate to Water-Sewer District services are on the Board's agenda today for review, discussion and direction. They are: · Updated Water Master Plan · Updated Sewer Master Plan · Impact Fee Study · Water and Wastewater Rates Study · Reuse Rate Study Staff anticipates bringing all five items back to the Board for approval at the December 11, 2001 meeting. As can be seen in the attached briefing document (Water and Wastewater Rate Consultants Executive Summary), rates for water and wastewater complement both the impact fees levied and the Master Plan(s) approved by the Board of County Commissioners. Major and significant changes are summarized below: 1. Conservative rate structure. high end users. 2. The cap on residential wastewater is recommended to be raise gallons per month to 15,000 gallons per month. The charge per 1,000 gallons is significant for fr°r~o~~M~ NOV 2~ 2001 F:\EXSU M\RevPropWtr-Wstwtr rates.doc 3. Rates will be the primary pledge for debt service for future bonds. The pledge must be sufficient to fund debt service. 4. A surcharge on consumption is recommended for periods of mandatory water restrictions. The surcharge will only apply to non-indoor usage. 5. The flat rate charge for irrigation-only use of potable water has been eliminated. 6. Working capital reserves have been decreased to approximately 60 days. 7. Consumption blocks for rates have been increased from three (3) to six (6) blocks. 8. The effect on Iow-end users has been minimized. The Water and Wastewater Rate Study has been presented to the Collier Builder Industry Association (CBIA), the Board's Development Services Advisory Committee (DSAC) and the DSAC's Utility Subcommittee. The recommended watedwastewater rates in this agenda item and the recommended impact fees in the prior agenda item are based on a January 1, 2002 implementation date. A delay in the implementation date for 90 days or more may require a change in the proposed user rates since such rates were approved to become effective immediately to provide an additional source of funds for the financing of the capital improvement program. GROWTH MANAGEMENT IMPACT: The proposed Water and Wastewater rates are designed to provide supplemental funding for water and wastewater capital improvements required if the proposed Water and Wastewater Master Plans are adopted. FISCAL IMPACT: The net additional rate revenue to be generated by the recommended water and wastewater fees over the next five (5) years is: Water = $ 9,038,338 Sewer = $22,826,604 $31,864,942 The impact to a single family residential user of both water and sewer services who has a % inch water meter can be estimated from the following chart which is included in the agenda package as Table ES-2. Below 7,000 gallons per month there is no increase for water; the increase is attributable to sewer. 0 2,000 4,000 5,000 7,000 10,000 15,000 20,000 Description Gallons Gallons Gallons Gallons Gallons Gallons Gallons Gallons Existing Rates $29.00 $35.76 $42.52 $45.90 $52.66 $62.80 $71.80 $80.80 Proposed Rates 30.00 37.32 44.64 48.30 56.34 68.40 91.50 103.50 $ Increase (Decrease) 1.00 1.56 2.12 2.40 3.68 5.60 19.70 22.70 %Increase (Decrease) 3.45% 4.36% 4.99% 5.23% 6.99% 8.92% 27.44% 28.09% F:\EXSU M\RevPropWtr-Wstwtr rates.doc AGENDA I~E~,. No. _,,pk.. ~0 NOV 2~ 2001 11/~1~.2001 7:5~ RECOMMENDATION: The Board of County Commissioners review the proposed water and wastewater rates, provide direction to staff to make changes, if appropriate, and direct staff to prepare an advertised public hearing on December 11, 2001 for the Board of County Commissioners to adopt a resolution establishing the rates for implementation on January 1, 2002. In addition, staff requests Board authorization to bring a consolidated Uniform Billing, Operating and Regulatory Standards ordinance as a companion item. Prepared by: %~---~~~~ Date: Johrt,,A. Yonkosk~77'Director ~ Utility'Billing and CustomerService Approved by: '~,f>'~'~~ Date: //~D/~27 Tom Wides, Interim Administrator Public Utilities Approved by: ? Date: / / Jam6¢¢~. Mudd, Deputy County Manager JAY:pc F :\EXSU M\RevPropWtr-Wstwtr rates,doc AGENDA ITeM No. ~ NOV 2t¢ 2001 EXECUTIVE SUMMARY COLLIER COUNTY WATER AND WASTEWATER RATE STUDY The operation for the Water and Sewer District for Collier County (The County) is accounted for as a utility enterprise fund. General accounting policies and prudent utility management require that the Water and Sewer System (the "System") must have revenues (financial resources) at least equal to the costs of providing services by the System. As such, the County should establish rates sufficient to meet the cost of operating, maintaining, repairing and financing the System. Although the County has annually updated the System financial needs as part of the ongoing budget process, the County has not formally reviewed the rates for water and wastewater service since 1997. In response to significant growth recently experienced by the System coupled with the expectation of continued growth within the County's ~tility service area in the near future, the construction of a significant amount of water and wastewater facilities will be required. As a result of the projected capital expenditure requirements of the utility, which includes plans to i) use existing operating and impact fee fund reserves and the issuance of long term debt to fund part of the capital program and ii) provide funds for the initiation of capital asset replacements in the near future, Public Resources Management Group, Inc. (PRMG) was retained to perform a review of the monthly rates for utility service on behalf of the County. The following is a summary of the observations, conclusions, and recommendations made during the course of the study. The current rates for monthly water and wastewater service were last adjusted by the County during the Fiscal Year 2000 and essentially have been in effect for over one (1) year. The rate adjustment implemented by the County represented an overall reduction in rates of approximately 1.0% and changed the structure of the rates (i.e., how service is billed) by combining non-residential billing, with residential, and multi-family for billing consistency. Prior to this rate adjustment, the rates were formally reviewed in Fiscal Year 1997 or approximately four (4) years ago. The rates for water and wastewater service are generally consistent in structure and include a i) a monthly base facility charge, which also serves as the minimum bill, and ii) a volumetric usage charge based on metered xvater consumption. A summary of the existing rates for monthly water and wastewater service is shown on Table ES-1. With respect to the water rates, the usage charge includes a water conservation promoting rate structure, which is consistent with the directives of the South Florida Water Management District regarding water resources planmng. This rate structure is common in the State and has been applied by the County for over ten (10) years without modification in the conservation pricing structure (as to the number of consumption blocks and associated level of water use in such consumption blocks). ES- 1 N _u01 o o o With respect to the wastewater rates, all metered water use is billed a wastewater charge with the following exceptions: i) the individually metered residential class currently has a 10,000 gallon monthly billing threshold to recognize that not all water is returned to the wastewater system and ii) water only where potable water use is not discharged to the wastewater system, with examples of such customers including irrigation use. Based on discussions with the County, the forecast of system customers was based on the population projections prepared by the Collier County Comprehensive Planning Section, Planning Services Department, Community Development, and Environmental Services Division. These projections recognize a continuation of account growth similar to what was recently experienced by the System in the most recently completed fiscal year but is, however, generally higher than recent historical trends. For the fiscal year ended September 30, 2001 (the "Fiscal Year 2001"), it is estimated that the System provided service on average to 35,867 water accounts, which equates to 70,851 equivalent residential connections (ERC). An ERC represents the annual average use of an individually metered residential (single-family) customer. Since 1998, the average water customers served by the System have increased by over 8,175 accounts, a cumulative growth rate of 22.9%, or an average annual growth rate of 5.72%. For the Fiscal Year 2001, it is estimated that the System provided service on average to 37,658 wastewater accounts, which equates to 60,210 equivalent residential connections (ERC). Since 1998, the average wastewater customers served by the System have increased by over 9,692 accounts, a cumulative growth rate of 25.7%, or an average annual growth rate of 6.43%. It should be noted that although the number of wastewater accounts is greater than the reported water accounts (due to differences in the service area boundaries), the number of ERCs for the water system is greater. This is due to the water system serving a greater proportion of master-metered residential accounts that receive service through larger meters, which equate to a greater number of ERCs per account. The average individually metered residential water use per customer for a 3/4" residential meter (the predominance of the customers served for the class) averaged approximately 9,295 gallons per month during the Fiscal Year 2001. The customer use forecast assumed in the financial projections is based on a lower per customer use of 8,870, which is expected to be more representative of normalized use. The average individually metered residential wastewater use per customer for a V4" residential meter averaged approximately 8,950 gallons per month during the Fiscal Year 2001. Because the County has a billing cap or threshold on the amount of water use that is billed the wastewater flow charge for this class of ES - 2 customers (which is a common rate application practice to recognize that not all of the water use is returned to the wastewater system), the actual billed usage for this class of customer would be less on average when compared to the water system usage statistics. The individually metered residential (single-family) class represents the majority of the customers served, representing approximately 52.3% of the total water accounts served by the System. Additionally, over 55.5% of the wastewater accounts are individually metered residential accounts served by the System. A breakdown of the County's customer base is as follows: Number of Accounts Per Class Water Wastewater Accounts Percent Accounts Percent Commercial (t) 2,099 5.85% 2,387 6.34% Multi-Family 2,834 7.90% 2,874 7.63% Residential 30,643 85.43% 32,397 86.03% Irrigation 292 0.82% n/a Total 35,868 100.00% 37,658 100.00% (1) Includes Special Sewer Accounts Number of Meter Equivalents Per Class Water Wastewater Equivalents Percent Equivalents Percent Commercial (~) 9,875 13.94% 7,648 12.65% Multi-Family 28,097 39.66% 19,415 32.12% Residential 31,686 44.72% 33,387 55.23% Irrigation 1,192 1.68% n/a Total 70,850 100.00% 60,450 100.00% (l) Excludes Special Sewer Accounts for clarification/illustration purposes 10. A significant component of the financial forecast and ability of the existing water and wastewater rates to meet the expenditure requirements of the System deals with the funding of the renewal and replacement costs, interconnects of existing facilities (e.g.: sewer plants and equalization tanks), and other capital needs of the System. The capital needs include i) upgrade projects to serve both existing and new development and address current regulatory issues regarding capacity availability and use; ii) the performance of renewals and replacements on existing assets; iii) the upgrade of facilities due to such issues as line relocations associated with Florida Department of Transportation (FDOT) projects; iv) other services area requirements, and v) the funding of departmental capital (i.e., furniture, fixtures, equipment, and vehicles). With the exception of the departmental capital outlay requirements, the capital expenditures recognized in the study were based on estimates included in the 2001 Master Plan Update as compiled by the County's Consulting Engineers, Greeley & Hansen, LLP. The following is a summary of the capital improvement program and corresponding funding sources as reflected in the financial forecast. AGE:#O~ ,-ecu ES - 3 NOV tO01 Financial Forecast Summary: FY 2002 Capital Expenditures Total Water $34,163,405 Total Wastewater 109,229,879 Total System 143,393,284 FY2003 FY2004 FY2005 FY2006 $37,771,262 $38,017,154 $48,586,461 $15,804,670 60,521,729 61,586,954 34,423,690 34,532,354 98,292,991 99,604,109 83,010,151 50,337,024 Funding Sources Water System Water System Impact Fees 154,184 19,068,400 14,582,100 10,933,000 4,735,900 (Fund 410) Additional Debt 20,354,200 16,582,930 21,889,270 36,810,020 10,212,280 Water Capital Account 13,269,800 1,463,540 1,137,500 422,500 422,500 (Fund 412) Water Rate Revenue 385,221 656,392 408,284 420,941 433,990 Total Water System 34,163,405 37,771,262 38,017,154 48,586,461 15,804,670 Wastewater System Wastewater System Impact 26,110,100 12,245,350 29,389,100 9,480,510 5,514,860 Fees (Fund 411) Additional Debt 57,955,000 42,532,360 29,247,010 21,442,720 25,551,500 SRF Funding (Existing Loan) 500,000 0 0 0 0 Sewer Capital Account 23,763,400 3,679,000 1540,500 2,028,000 2,028,000 (Fund 413) Sewer Rate Revenue 901,379 2,065,019 1,410,344 1,472,460 1,437,994 Total Wastewater System 109,229,879 60,521,729 61,586,954 34,423,690 34,532,354 Total System 143,393,284 98,292,991 99,604,109 83,010,151 50,337,024 It should be noted that the capital expenditure funding analysis does recognize the anticipated increase in impact fee charges to finance the County's capital program. 11. The financial forecast and associated ability of the rate revenues to meet the projected expenditure needs recognized the following: · Operating expenses were increased annually for inflation, growth, and changes in operation; · Additional Debt Service requirements are needed to fund the System capital improvement program as set forth above; · Forecast recognizes a fully funded capital improvement program using new debt, available impact fee funds, other cash reserves and rate revenues; · The financial projections recognize the maintenance of working capital reserves equal to approximately 60 days of operating reserves for emergency needs and financial stability; · Operating Expenses include a contingency allowance equal to 3% of operating expenses for unknown expenses or changes in revenue. ES - 4 12. As mentioned above, the County expects to issue additional debt issued on a parity basis to the outstanding water and wastewater utility revenue bonds (the "Senior Lien Bonds") and incur additional low-interest loans through the State Revolving Loan Fund (SRF) program as administered by the Florida Department of Environmental Protection (FDEP). 13. Based on the financial forecast reflected in the report, the existing rates for monthly water and wastewater service will not be adequate to meet the utility allocated revenue requirements (expenditures and funding needs) of the System. With respect to the Water system, the following rate adjustments have been identified: Fiscal Year 2002 7.61% Fiscal Year 2005 5.64% The following is a summary of the revenue requirements and anticipated rate adjustments for the water system based on the assumptions reflected in the report: Water System Operating Expenses Debt Service o) Other Revenue Requirements FY 2002 FY 2003 FY 2004 FY 2005 FY2006 $16,645,606 $17,946,554 $18,961,184 $20,062,587 $21,098,073 2,517,753 5,844,188 7,146,937 10,479,692 10,277,473 5,937,106 2,056,392 908,284 420,941 433,990 Gross Revenue Requirements Less Other Income Net Revenue Requirements 25,100,465 25,847,135 27,016,406 30,963,220 31,809,536 (2,172,661) (1,927,489) (1,982,373) (2,609,831) (1,479,490) 22,927,804 23,919,646 25,034,033 28,353,389 29,610,046 Applicable Rate Revenue (3) 21,689,831 Revenue Surplus/(Deficiency) ($1,237,974) t4) % Increase Required ts) (7.61%) 24,723,895 25,812,566 26,839,361 29,635,692 $804,248 $778,533 ($1,514,028) $25,646 0.00% 0.00% (5.64%) 0.00% (1) Amounts shown include the estimated additional debt service requirements necessary to finance the County's anticipated capital improvement program as identified in the 2001 System Master Plan. (2) Amounts shown include other operating revenues and interest income on unrestricted fund balances; amounts shown do not include the receipt of impact fees which are restricted to the funding of capital expenditures associated with system expansion or growth. (3) Applicable rate revenue includes effects of prior year rate adjustments in subsequent years (e.g., the fiscal year 2002 rate adjustment recognized in determination of revenues for subsequent years). (4) Any revenue considered as surplus funds assumed to be deposited in operating reserve fund to meet working capital targets and to maintain financial sufficiency of the System. (5) FY 2002 rate increase assumes implementation date of January 2002, , all other estimated rate adjustments assumed to become effective October 1 ~t of each fiscal year. 14. With Respect to the Wastewater System, the following rate adjustments have been identified: Fiscal Year 2002 Fiscal Year 2005 16.70% 13.03% ES- 5 NOV 001 The following is a summary of the revenue requirements and anticipated rate adjustments for the wastewater system based on the assumptions reflected in the report: Wastewater System Operating Expenses Debt Service Other Revenue Requirements FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 $17,153,190 $18,027,175 $18,871,693 $19,858,666 $20,870,304 5,318,477 7,773,818 11,964,470 16,965,022 16,792,801 6,651,379 2,465,019 3,210,344 3,472,460 1,587,994 Gross Revenue Requirements Less Other Income (2) Net Revenue Requirements Applicable Rate Revenue (3) Surplus/(Deficiency) (4> % Increase Required (5) 29,123,046 28,266,012 34,046,507 40,296,148 39,251,099 (2,397,219) (3,032,776) (2,937,019) (2,789,811) (2,801,471) 26,725,827 25,233,236 31,109,488 37,506,337 36,449,628 23,751,553 29,621,786 31,664,195 33,182,703 38,529,363 ($2,974,274) $4,388,550 $554,706 $(4,323,634) $2,079,735 (16.70%) 0.00% 0.00% (13.03%) 0.00% (1) Amounts shown include the estimated additional debt service requirements necessary to finance the County's anticipated capital improvement program as identified in the 200l System Master Plan. (2) Amounts shown include other operating revenues and interest income on unrestricted fund balances; amounts shown do not include the receipt of impact fees which are restricted to the funding of capital expenditures associated with system expansion or growth. (3) Applicable rate revenue includes effects of prior year rate adjustments in subsequent years (e.g., the fiscal year 2002 rate adjustment recognized in determination of revenues for subsequent years). (4) Any revenue considered as surplus funds assumed to be deposited in operating reserve fund to meet working capital targets and to maintain financial sufficiency of the System. (5) FY 2002 rate increase assumes implementation date of January 2002, , all other estimated rate adjustments assumed to become effective October 1~ of each fiscal year. 15. The primary reasons for the proposed rate adjustments include the following: · The continued inflationary effects on the operation of the utility system. Since the last formal rate review in fiscal year 1997, the consumer price index has increased by an estimated amount of 2.41% per year which has a direct effect on the level of operating expenses incurred by the System. · Due to the need to finance the capital improvement program of the System, the County will be issuing several series of utility revenue bonds and other forms of indebtedness. In order to issue such debt, the rates for service, the primary pledge for repayment of such debt, must be sufficient to fund the annual debt service payments and meet the rate covenant requirements as required by the Bond Resolution/Loan Documents authorizing the issuance of such indebtedness. · In order to finance the capital improvement program, the County anticipates using a significant amount of cash reserves and available funds. As a result of using such funds, interest income which is relied upon to meet System expenditures will be reduced, thus impacting the rates for service. · In order to maintain the financial health of the System and meet rate covenants, the County will need to replenish working capital reserves at prudent levels (considered by PRMG to be a minimum of sixty (60) days of rate revenue). ES -6 16. 17. 18. Regulatory constraints on the cost of operations is being experienced by all utilities, including the System. For example, the newly promulgated sludge disposal rules will significantly increase the cost of sludge disposal, which is recognized in the financial forecast. To account for future effects of changing regulations and other factors, a 3% operating expense contingency has been recognized as a revenue requirement to be funded from monthly user fees. The proposed rates, if implemented in accordance with the assumptions reflected in the study, are anticipated to be sufficient to meet the rate covenant requirements as defined in the Bond Resolution that authorized the issuance of the outstanding utility system revenue bonds (the "Senior Lien Bonds") and the State Revolving Funds Program administered by the FDEP (the "Junior Lien Bonds"). Such covenants include i) requirements associated with the issuance of additional Senior Lien Bonds; ii) compliance with certain debt service coverage ratios as defined in the Bond Resolutions and FDEP Loan documents; as well as iii) the maintenance of certain funds and accounts as established by the Resolution.' Because of the recent mandatory water restrictions, which have been in effect for the County water system as required by the South Florida Water Management District (SFWMD), it is recommended that the County adopt a mandatory water restriction surcharge. This surcharge would be effective only during periods where the SFWMD has declared water restrictions pursuant to its Water Shortage Plan. The rate adjustment would be based on the water shortage phase in effect as declared by the SFWMD and would be billed by the County during such water shortage. The purpose of the surcharge is to: i) encourage water conservation by increasing the price of the water conservation blocks; and ii) preserve net revenue margins such that the System can meet its financial commitments for service (e.g., payment of debt service, etc.). The rate adjustment would be applied only to the consumption charge (not the base charge) and only to those consumption blocks not considered being for indoor use. The following is a summary of the recommended "non-indoor" usage-only charge rate adjustments based on the SFWMD water shortage phase: Water Shortage Phase Flow Charge Rate Adjustment Percentage Moderate 15% Severe 30% Extreme 45% Critical 60% The proposed rates for water service include the increase of the water conservation blocks to further promote water conservation and charge users which demand a water capacity in excess of the needs for indoor and discretionary use. The following is a summary of the existing and proposed water usage blocks and corresponding rates for service. In the design of the proposed water usage rates, an allowance for the price elasticity of water was recognized (i.e., as the price for water increases, water use will proportionately decrease). ES - 7 NOV 2001 Existing Rates Proposed Rates Consumption Rate ($/000) Consumption Rate(S/000) Range Range Water System Base Rate 0 Gallons $12.00 0 Gallons $12.00 First Block 0 - 10,000 1.44 0 - 5,000 1.44 Gallons Gallons Second Block 10,001 -20,000 1.80 5,001 - 10,000 1.80 Gallons Gallons Third Block 20,001 - 30,000 2.25 10,001 - 20,000 2.40 Gallons Gallons Fourth Block Above 30,000 20,001 - 30,000 3.05 Gallons Gallons Fifth Block n/a 30,001 - 50,000 3.65 Gallons Above 50,000 4.45 Sixth Block n/a Gallons Wastewater System Base Rate 0 Gallons $ ! 7.00 0 Gallons $18.00 Usage Rate Above 0 Gallons 1.94 Above 0 Gallons 2.22 19. Based on the directives of County staff and in order to provide additional water conservation incentives and finance the wastewater system revenue requirements, the maximum monthly billing threshold for the application of wastewater consumption charges is recommended to be increased from 10,000 gallons per month to 15,000 gallons per month. This change in billing threshold is a policy decision of the County (pricing of service) and not based on cost of service principals. 20. Except as noted above, the rate structure for the water and wastewater rates is proposed to remain in effect which maintains rate consistency between the two utility systems. A summary of the proposed rates are included on Table ES-1. The following is a summary of the rate impact for a 5,000 and 10,000 gallon monthly user of water and wastewater service. Water System Existing Rates Proposed Rates Increase (Decrease) Percent Monthlv Residential Customer 57000 Gallons of Service $19.20 19.20 0.00 0.00% 10,000 Gallons of Service $26.40 28.20 1.80 6.82% Wastewater Rates Existing Rates Proposed Rates Increase (Decrease) Percent 26.70 29.10 2.40 8.99% 36.40 40.20 3.80 10.44% ES - 8 NOV 2001 ~(;o // 21. The proposed rates for the County are anticipated to be comparable with rates charged by other similar local governments, which have the same general service area demographics (primarily residential, rural in nature with no federal/outside grant funds, new system reflecting current construction costs). A summary of the results of a rate survey is shown on Table ES-2 and summarized below. Monthly Residential Customer Water System Wastewater System Total System Other Utility Average (*) 5~000 Gallons of 10~000 Gallons Service of Service (*) Based on comparison summarized in Table ES-2 $19.20 $26.40 29.10 40.20 48.30 68.40 $48.89 $76.29 22. The proposed rates should be made effective by the County by January 1, 2002 or as soon as possible thereafter to protect the financial integrity of the System. The proposed rates for service should be made effective prior to the issuance of debt (capital expenditure financing) in order to meet the rate covenants associated with the issuance of additional parity bonds and to illustrate to investor's that sufficient rates will be in effect at a level necessary to repay the principal amount of borrowing. ES - 9 NOV 2001 Table ES-I Collier Count3..' Water. Wastewater. and Reuse System Water and Wastewater System Summary, Comparison of Existing and Proposed Rates L/ne EXISTING WATER SERVICE AVAILABILITY CHARGE Meter Size Rates I 5:8" $ 12.00 2 34" 12.(10 3 1" 24.00 4 1-[ 4" 30.00 5 1-12" 44.u0 6 2" o9.00 7 3" 134.00 8 4" Z07.{10 9 6" 41 t.00 10 8" 737.00 11 10" 1,200.110 12 12" 1.71it).O0 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 29 3O 31 VOLUME CHARGE PER 1,0C~0 GALLONS Block 1 $ 1.44 Block 2 1.80 Block 3 2.25 IRRIGATION 2.03 BLOCK RATE STRUCTURE Meter Size Block 1 5/8" 3/4" 1-1/2" 10" 12" Block 2 Block 3 10.000 20.000 20,0~0 10.000 2o,000 20,000 25,c)00 503)00 50,000 40.oo0 80.0{10 g0.0,0 50.000 10{1,000 100.000 St ~,000 16o.000 I ~ h0.(}o0 320.0~}0 320.o,0 250,000 500,000 500,000 500,000 1,000,000 1,000,000 900,000 1.800.0110 1.800.0~10 1.450,000 2,90o,000 2.900,000 2,150,000 4.300,000 4,300.000 SEV,'ER SERVICE AVAILABILITY CHARGE 32 Meter Size 33 5/8" $17.00 34 3/4" t 7.00 35 1" 35.00 36 1-1/4" 53.00 37 1-1/2" 65.00 38 2" 101 39 3" 1 {} 7.00 40 4" 305.00 41 6" 606.00 42 8" 1.087.00 43 10" 1,750.00 44 12" 2,600.00 45 VOLUME CHARGE PER 1,000 GALLONS $[o4 PROPOSED WATER SERVICE AVAILABILITY CHARGE Meter Size Rates 5/8" $ 12.00 3/4" 12.00 1" 26.40 1-1/4" 33.6[) I-1/2" 5,.40 2" 79.20 3" 146.40 4" 242.40 6" 482.40 8" 770.40 10" 1.394.40 12" 1.883.65 VOLUME CHARGE PER 1.000 GALLONS Block 1 $ 1.44 Block 2 1.80 Block 3 2.40 Block 4 3.05 Block 5 3.65 Block 6 4.45 IRRIGATION Included in above block structure BLOCK RATE STRUCTURE Meter Size Block I Block 2 Block 3 Block 4 Block 5 5/8" 1-1/2" 12" Block 6 5,000 10,000 20,000 30.000 50,000 50.000 5.0O0 10,000 20.000 30.000 50,000 50,000 12,000 25,0n0 50,00O 75,000 120.000 120,000 2(U)00 40,000 80,000 120.~00 200,000 200.o00 25.0o0 50.000 100.000 150.000 250,000 250.00ti 40.0(10 80,0(K) I o0,000 240,000 400.000 400.000 80,000 160,000 320,000 480,000 8o0,00o 800.000 120.000 250.0O0 5OO.0O0 800.000 1,200,000 1.200,000 250.0O0 500,0O0 1,000,000 1.500,000 2.500,000 2,500,000 450.000 900,000 1,800,000 2,700,000 4,500,000 4,500.000 700.000 1.450.000 2,900.000 4.300.000 7,000,000 7.000,000 1,075,000 2.I50,000 4,300,000 6,450,000 11,000,000 11,000,000 SEWER SERVICE AVAILABILITY CHARGE Meter Size 5/8" $18.00 3/4" 18. o0 1" 4o.95 1-1/4" 52.45 1-1/2" 79.20 2" 125 10 3" 232.20 4" 385.20 6" 767.70 8" 1.226.70 10" 2,199.40 12" 3,259.90 VOLUME CHARGE PER 1,000 GALLONS 52.22 AG~NOA Nov Table ES-2 Collier County, Florida Water and Wastewater Rate Study Comparison of Typical Monthly Residential Bills for Water and Wastewater Service 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Residential Service for a 5/8" or 3/4" Meter Line 0 2,000 4,000 5,000 7,000 10,000 15,000 20,000 No. Description Gallons Gallons Gallons Gallons Gallons Gallons Gallons Gallons Collier County 1 Existing Rates $29.00 $35.76 $42.52 $45.90 $52.66 $62.80 $71.80 $80.80 2 Proposed Rates 30.00 37.32 44.64 48.30 56.34 68.40 91.50 103.50 3 Increase (Decrease) 1.00 1.56 2.12 2.40 3.68 5.60 19.70 22.70 4 Percentage Increase (Decrease) 3.45% 4.36% 4.99% 5.23% 6.99% 8.92% 27.44% 28.09% Other Florida Utilities: City o£ Bmdenton $19.15 $24.89 $32.64 $37.52 $47.28 $61.92 $86.32 $110.72 Brevard County 21.65 27.35 34.66 39.12 48.04 61.42 75.65 84.50 Charlotte County (2) 38.35 51.63 64.91 71.55 84.83 104.75 127.55 153.99 City of Clearwater 19.17 19.17 26.14 33.11 47.05 68.58 106.53 144.48 Englewood Water District 27.63 36.83 46.03 50.63 60.43 80.83 104.83 128.83 FL Water Services - Lehigh - Lee County 26.38 44.94 63.50 72.78 85.75 96.82 115.27 133.72 City of Fort Myers 8.97 23.29 37.61 44.77 60.63 84.42 100.92 134.97 Hillsborough County 24.45 37.35 50.25 56.70 69.60 80.95 93.20 111.70 Lee County (2) 20.25 31.65 43.05 48.75 57.13 65.17 80.07 97.97 Manatee County 17.95 25.35 32.75 36.45 43.92 55.23 61.22 81.62 City of Naples 18.98 25.16 31.34 34.43 40.61 49.88 65.33 80.78 City of North Port 30.90 44.80 58.70 65.65 79.55 93.70 111.70 129.70 Orange County 19.43 27.55 35.97 40.33 49.05 62.13 80.76 91.21 Pinellas County 19.25 25.45 31.65 37.00 4T70 63.75 90.50 104~85 City of Punta Gorda 32.35 40.21 48.07 52.00 59.86 71.65 87.30 102.95 City of Sarasota 23.24 38.21 53.17 60.66 75.62 98.07 135.48 177.40 Sarasota County 28.26 44.64 61.02 70.01 87.99 118.50 148.20 189.20 City of Tampa 4.28 12.99 23.26 28.58 , 39.23 55.49 87.58 120.16 23 Other Florida Utilities' Average $22.26 $32.30 $43.04 $48.89 $60.24 $76.29 $97.69 $121.04 Unless otherwise noted, amounts shown reflect residential rotes in effect October 2001 and are exclusive of taxes or franchise fees, if any, and reflect rates charged for inside the city service. All rates are as reported by the respective utility. This comparison is intended to show comparable charges l'or similar serx'ice t'or comparison purposes only and is not intended to be a complete listing of all rates and charges offered by each listed utility. (2) Utility is currently involved in a rate study, or is planning one within the next few months. RateSmdyExecSummTables; 5-8" Combined 2001 Table ES-3 Collier County, Florida Water and Wastewater Rate Study Comparison of Typical Monthly Residential Bills for Wastewater Service (1) Residential Service for a 5/8" or 3/4" Meter Line 0 2,000 4,000 5,000 7,000 10,000 15,000 20,000 No. Description Gallons Gallons Gallons Gallons Gallons Gallons Gallons Gallons Collier County 1 Existing Rates $17.00 $20.88 $24.76 $26.70 $30.58 $36.40 $36.40 $36.40 2 Proposed Rates 18.00 22.44 26.88 29.10 33.54 40.20 51.30 51.30 3 Increase (Decrease) 1.00 1.56 2.12 2.40 2.96 3.80 14.90 14.90 4 P~rcentage Increase (Decrease) 5.88% 7.47% 8.56% 8.99% 9.68% 10.44% 40.93% 40.93% Other Florida Utilities: 5 City of Bradenton $11.66 $14.32 $18.27 $20.89 $26.13 $33.99 $47.09 $60.19 6 Brevard County 13.43 19.13 24.83 27.68 33.38 41.93 47.63 47.63 7 Charlotte County (2) 21.47 27.45 33.43 36.42 42.40 51.37 51.37 51.37 8 City of Clearwater l 1.10 11.10 14.80 18.50 25.90 37.00 55.50 74.00 9 Englewood Water District 17.63 23.23 28.83 31.63 37.23 45.63 45.63 45.63 10 FL Water Services - Lehigh - Lee County 16.62 27.80 38.98 44.57 50.16 50.16 50.16 50.16 11 City of Fort Myers 5.36 15.14 24.92 29.81 40.11 55.56 55.56 55.56 12 Hillsborough County 14.65 22.85 31.05 35.15 43.35 47.45 47.45 47.45 13 Lee County (2) 12.15 19.19 26.23 29.75 33.27 33.27 33.27 33.27 14 Manatee County 12.50 17.86 23.22 25.90 31.26 39.30 39.84 39.84 15 City of Naples 11.72 15.68 19.64 21.62 25.58 31.52 41.42 51.32 16 City of North Port 21.74 29.94 38.14 42.24 50.44 54.54 54.54 54.54 17 Orange County 13.96 20.30 26.64 29.81 36.15 45.66 58.34 58.34 18 Pinellas County 8.00 14.20 20.40 23.50 29.70 39.00 54.50 57.60 19 City of Punta Gorda 20.70 23.12 25.54 26.75 29.17 32.80 32.80 32.80 20 City of Sarasota 15.65 25.86 36.06 41.17 51.37 66.68 92.19 120.47 21 Sarasota County 1434 27.16 39.98 46.39 59.21 78.44 78.44 78.44 22 City of Tampa 2.78 10.21 17.65 21.36 28.80 39.95 58.53 77.11 23 Other Florida Utilities' Average (1) $13.64 $20.25 $27.14 $30.73 $37.42 $45.79 $52.46 $57.54 Unless otherwise noted, amounts shown reflect residential rates in effect October 2001 and are exclusive of taxes or franchise fees, if any, and reflect rates charged for inside the city service. All rates are as reported by the respective utility. This comparison is intended to show comparable charges for similar service for comparison purposes only and is not intended to be a complete listing of all rates and charges offered by each listed utility. (2) Utility is currently involved in a rate study, or is planning one within the next few months. RateStudyExecSummTables; 5-8" Sewer Table ES-4 Collier County, Florida Water and Wastewater Rate Study Comparison of Typical Monthly Residential Bills for Water Service (1) 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 2l 22 Residential Service for a 5/8" or 3/4" Meter Line 0 2,000 4,000 5,000 7,000 10,000 15,000 20,000 No. Description Gallons Gallons Gallons Gallons Gallons Gallons Gallons Gallons Collier County 1 Existing Rates $12.00 $14.88 $17.76 $19.20 $22.08 $26.40 $35.40 $44.40 2 Proposed Rates 12.00 14.88 17.76 19.20 22.80 28.20 40.20 52.20 3 Increase (Decrease) 0.72 1.80 4.80 7.80 4 Percentage Increase (Decrease) 0.00% 0.00% 0.00% 0.00% 3.26% 6.82% 13.56% 17.57% Other Florida Utilities: City of Bmdenton $7.49 $10.57 $14.37 $16.63 $21.15 S27.93 $39.23 $50.53 Brevard County 8.22 8.22 9.83 11.44 14.66 19.49 28.02 36.87 Charlotte County (2) 16.88 24.18 31.48 35.13 42.43 53.38 76.18 102.62 City of Clearwater 8.07 8.07 11.34 14.61 21.15 31.58 51~03 70.48 Englewood Water District 10.00 13.60 17.20 19.00 23.20 35.20 5920 83.20 FL Water Services - Lehigh - Lee County 9.76 17.14 24.52 28.2l 35.59 46.66 65.11 83.56 City of Fort Myers 3.61 8.15 12.69 14.96 20.52 28.86 45.36 79.41 Hillsborough County 9.80 14.50 19.20 21.55 26.25 33.50 45.75 64.25 Lee County (2) 8.10 12.46 16.82 19.00 23.86 31.90 46.80 64.70 Manatee County 5.45 7.49 9.53 10.55 12.66 15.93 21.38 41.78 City of Naples 7.26 9.48 11.70 12.81 15.03 18.36 23.91 29.46 City of North Port 9.16 14.86 20.56 23.41 29~11 39.16 57.16 75.16 Orange County 5.47 7.25 9.33 10.52 12.90 16.47 22.42 32.87 Pinellas County 11.25 tl .25 11.25 13.50 18.00 24.75 36.00 47.25 City of Punta Gorda I 1.65 17.09 22.53 25.25 30.69 38.85 54.50 70.15 City of Sarasota 7.59 12.35 17.11 19.49 24.25 31.39 43.29 56.93 Sarasota County 13.92 17.48 21.04 23.62 28.78 40.06 69.76 110.76 City of Tampa 1.50 2.78 5.62 7.22 10.43 15.55 29.05 43.05 23 Other Florida Utilities' Average $8.62 $12.05 $15.90 $18.16 $22.81 $30.50 $45.23 $63.50 Unless otherwise noted, amounts shown reflect residential rates in effect October 2001 and are exclusive of taxes or franchise fees, if any, and reflect rates charged for inside the city service. All rates are as reported by the respective utility. This comparison is intended to show comparable charges for similar service t'or comparison purposes only and is not intended to be a complete listing of all rates and charges offered by each listed utility. (2) Utility is currently involved in a rote study, or is planning one within the next few months. RateStudyExecSummTables; 5-8" Water N0 '2001 EXECUTIVE SUMMARY REVIEW PROPOSED WATER AND SEWER IMPACT FEES OBJECTIVE: Board of County Commissioners review, discuss and provide staff direction regarding proposed water and sewer impact fees. Request for adoption of the water and sewer impact fees will come back to the Board on December 11, 2001 after modifications (if any) are made per Board direction. CONSIDERATIONS: Impact fees are used by Collier County to help fund necessary capital investment required to provide utility services to new population and related development. The Collier County Water-Sewer District has used impact fees to fund growth - related capital costs since 1978. The Board of County Commissioners established the current impact fees in August of 1998. They have been in place for slightly more than three (3) years. And were based on rather under-projected population figures which resulted in a undersized capital improvement/master plan. The County's exceptional growth in the past three (3) years, in conjunction with the expansion of the Water-Sewer District service area as contemplated in the Rural Fringe Area Assessment Conceptual Strateqies indicates that certain proactive measures should be taken by the Board of County Commissioners in order to match capacity with future needs. Five of the proactive measures as they relate to Water-Sewer District services are on the Board's agenda today for review, discussion and direction. They are: · Updated Water Master Plan · Updated Sewer Master Plan · Impact Fee Study · Water and Wastewater Rates Study · Reuse Rate Study Staff anticipates bringing all five items back to the Board for approval at the December 11, 2001 meeting. The draft master plan(s) recommend the addition of 34.8 million gallons per day of wastewater treatment capacity over the next nine (9) years. In addition, the drafts recommend 32 million gallons of water plant capacity over the same period. The capital costs allocable to future users through Fiscal Year 2011 is estimated at approximately $639 million. The Impact Fee Study Briefing Document (Impact Fee Consultants Executive Summary) attached is designed to establish water and wastewater impact fees at F:\EXSU M\RevPropWtr-Swr ImpFees.doc the maximum level allowed in accordance with equity tests established by the Florida Court systems. The Impact Fee Study has been presented to the Collier Builder Industry Association (CBIA), the Board's Development Services Advisory Committee (DSAC) and the DSAC's Utility Subcommittee. The recommended impact fees in this agenda item and the recommended water/wastewater rates in the next agenda item are based on a January 1, 2002 implementation date. A delay in the implementation date for 90 days or more may require a change in the user rates since the proposed impact fees were identified as an additional source of funds for the financing of the capital improvement program. GROWTH MANAGEMENT IMPACT: The proposed Water-Sewer District impact fees are designed to provide adequate funding for water and wastewater capital improvements required if the proposed Water and Wastewater Master Plans are adopted. FISCAL IMPACT: The contemplated revenue to be generated by the recommended impact fees over the next five (5) years: Water = $54,246,380 Sewer = $54,515,531 $108,761,911 rates for implementation on January_l, 2002. Prepare g~hn A. Yonko~o~y, Direct.or.--~ 0tiJ'ty Bill~ng anf d Customer Service Approved by: Tom Wides, Interim Administrator Public Utilities Approved by:~,,~..~..~~ Jacrf~s V. Mudd, Deputy Coun{y Manager RECOMMENDATION: The Board of County Commissioners review the proposed impact fees, provide direction to staff to make changes, if appropriate, and direct staff to prepare an advertised public hearing on December 11, 2001 for the Board of County Commissioners to adopt a resolution establishing the Date: Date: Date: JAY:pc F:\EXSU M\RevPropWtr-Swr ImpFees.doc 11/15/2001 Collier County Water and Wastewater System Impact Fee Study EXECUTIVE SUMMARY AND RECOMMENDATIONS The purpose of an Impact Fee is to assign, to the extent practical, growth-related capital costs to those new customers responsible for such costs. To the extent new population growth and associated development imposes identifiable added capital investment necessary to provide utility services, equity and modem capital funding practices suggest the assignment of such cost to those residents or system users responsible for such added costs. The County has recognized this capital funding strategy for over 23 years on behalf of its County Water - Sewer District ("the System") as being an appropriate method of funding the increased capital requirements as a result of development within the service area of the System. The existing impact fees for the System were made effective by the Board of County Commissioners (BOCC) pursuant to the adoption of the Regional Water and/or Sewer Systems Impact Fee Ordinance, No. 98-69 on August 4, 1998. The impact fees adopted by the County pursuant to Ordinance No. 98-69 were subsequently amended by the adoption of the Collier County Consolidated Impact Fee Ordinance No. 2001-13 on March 13, 2001 (collectively the "impact Fee Ordinance"). This ordinance essentially combined all of the County's applicable impact fees (e.g., roads, water, wastewater, parks and recreation, etc.) into a single ordinance for administrative purposes. It should be noted that the water and wastewater impact fees included in the Impact Fee Ordinance are the same fees as initially adopted by the County pursuant to Ordinance No. 98-69. As such, the existing fees have been in effect for over three (3) years. The Impact Fee Ordinance sets forth the purpose of the fees, the level of fees charged to new applicants requesting water and wastewater capacity, and other parameters relative to the fee (general applicability provisions, etc.). A copy of the County's Impact Fee Ordinance for the water and wastewater systems is included in Appendix A at the end of this Report. In support of the implementation of new impact fees, the County has: i) continued to perform facility improvements and upgrades to the utility system; and ii) identified a significant amount of capital improvements to address anticipated utility system needs in the near future to meet future treatment standards and regulations, and to extend service to areas not currently served by the County. As a result of these identified capital improvements, the County retained Public Resources Management Group, Inc. ("PRMG") to review the existing fees and recommend appropriate changes to the fees where appropriate. The following is a summary of the observations and recommendations developed by PRMG during our investigation, analyses, and preparation of the Report. The imposition of impact fees must meet the rational nexus requirements as determined by case law whereby the benefits received by the applicant (new development) must be reasonably related to the capital cost of providing utility services. The proposed fees 112 5-01 ~RateStudy\Exe_Sum ES-1 Collier County Water and Wastewater System Impact Fee Study o o o were designed to meet these provisions based on the information made available to PRMG. The existing Water Impact Fee is $1,275 per equivalent residential connection ("ERC") and was made effective by the County by the adoption of the Impact Fee Ordinance on August 4, 1998 and has been in effect for over three (3) years. An ERC represents the average daily capacity of an individually metered residential customer receiving service through a 3/4-inch service, subject to limitations in house hold size (i.e.: square footage of the residence). Generally, a typical residence would equate to 1.0 ERC with all other accounts/development being expressed as a multiple of ERCs. The impact fees for service are applied on an ERC basis. The existing wastewater impact fee is $1,575 per ERC and was made effective by the County by the adoption of the Impact Fee Ordinance and has been in effect for over three (3) years. Pursuant to the Impact Fee Ordinance, the impact fees are applied to three (3) customer classifications. These customer classifications include a)individually metered single- family residential service (which recognizes differences in household size based on the number of bathrooms for the single-family residential dwelling unit and size [square footage] of the dwelling unit); b) multi-family residential service (e.g., duplex, mobile home, etc.); and c) non-residential or commercial service. The following is a summary of the fee application methodology for single family residential service as documented in the existing Impact Fee Ordinance: Living Area Basis of Fee Meter {Square Feet) Allocation Size ERC Up to 4 Bedrooms 0 to 5,000 Per Unit ¼" 1.0 Impact Fee $1,275 Water, $1,575 Sewer More than 4 Bedrooms Over 5,000 Meter Size/ Per N/A Based on Meter Per Unit Ordinance Size, $1,275Water $1,575 Sewer The impact fees for the multi-family dwelling unit is based on the number of dwelling units served by each meter and recognizes the size of the dwelling unit (square footage) in the determination of the ERC per dwelling unit. The following is a summary of the multi-family ERCs based on the demographics of each dwelling: 1125-01 ~RateStudy\Exe_Sum ES -2 Collier County Water and Wastewater System Impact Fee Study Living Space Basis of Fee ERC (Square Feet) [1] Allocation [2] Factor 0 to 750 Unit 0.33 751 to 1,500 Unit 0.67 1,501 or More Unit 1.00 [1] [2] Derived from Impact Fee Ordinance; multi-family attribute comparison does not include travel trailer, or recreational vehicle (RV) unit designations. Allocation basis for multi-family class includes a "per dwelling" unit or space designation with living space attributes based on published wastewater capacity information published by the Department of Health and Rehabilitative Services Chapter 17-600 Florida Administrative Code. With respect to the commercial class, the fees are based on the size of the water meter, which recognizes differences in the amount of fee charged to an applicant based essentially on the premise that customers that require a greater level of capacity (increased level of service) are served by larger meters as demonstrated by the existing impact fee schedule is shown below: Meter Size ERC Factor Water Impact Fee Sewer Impact Fee Vn- inch 1.0 $l,275 $1,575 l-inch 2.5 3,188 3,938 I ½ inch 5.0 6,375 7,875 2-inch 8.0 10,200 12,600 3-inch 16.0 20,400 25,200 4-inch 25.0 31,875 39,375 6-inch 50.0 63,750 78,375 8-inch 90.0 114,750 141,750 10-inch 145.0 184,875 228,375 12-inch 215.0 274,125 338,625 ERC factors based on water meter capacity (instantaneous flow) information published by the American Water Works Association. Such factors are also used by the Florida Public Service Commission in the regulation of rates for private water and wastewater utilities in Florida. The Level of Service (LOS) standard utilized in the development of the impact fees is as follows: ERC Factor (gpd) Water Service 350 Wastewater Service 250 (gpd) = gallons per day - average annual daily use 1125-01 \RateStudy\Exe_Sum ES-3 ~G. Collier County Water and Wastewater System Impact Fee Study The following is a summary of the sources considered in the analysis: Gallons Per Day Per ERC Source Water FPSC Rule 25-30.020 FAC FDEP General Design Standards 2001 System Master Plan (*) County Growth Management Plan County Regional Impact Fee Ordinance Wastewater 350 280 350 280 361 230 370 240 350 28O (*) Determined as follows: Estimated Persons per Household Average Daily Flow (gpcd) Average Flow Per ERC 2.3 2.3 157 100 361 230 The County has undertaken a very aggressive capital improvement program to insure that adequate facilities exist to meet customer growth. Based on information contained within the draft 2001 Water and Wastewater Master Plan Update prepared by Greeley and Hansen, the County's Consulting Engineer, the following is a summary of capacity additions expected to be undertaken within the next nine year period for the water and wastewater systems: New Water Plant Capacity: South County Plant Expansion South County Plant Expansion Northeast County Plant Construction Total Capacity Added (*) Planning Period 8.000 2002-2006 12.000 2002-2006 12.000 2007-2011 32.000 New Wastewater Plant Capacity: South County Plant Expansion North County Plant Expansion North County Plant Expansion North County Plant Expansion Pelican Bay Plant Retirement Northeast County Plant Construction Northeast County Plant Expansion Southeast County Plant Construction East Central County Plant Construction Total 5.600 2002-2006 6.500 2002 6.500 2002- 2006 6.500 2007- 2011 (1.300) 2007-2011 2.000 2002-2006 2.000 2007-2011 3.000 2007-2011 4.000 2002 - 2006 34.800 (*) Represents maximum day capacity for water plants and maximum month capacity for wastewater plants through FY 2011. 1125-01 hRateStudyXExe_Sum ES-4 Collier County Water and Wastewater System Impact Fee Study 10. 11. The development of the capital costs included in the derivation of the impact fees was based on the improvements-driven method. Specifically, the fees were predicated on the estimated cost of the additional capital expenditures identified in the County's 2001 Master Plan Update, adjusted for construction work in progress as of the end of the fiscal year 2001 and to recognize the removal of certain projects not considered applicable to the impact fee calculations (e.g.: master plan updates). Such capital costs were allocated between existing and future customers based on the estimated benefit afforded to such customers predicated on the intent of the expenditures, existing and future capacity needs of the System, and other factors. The following is a summary of the capital cost allocation recognized in this study: Capital Costs (000's) Allocable To: Existing Users Future Users Total Capital Costs Recognized Water Wastewater Amount Percent Amount · Percent $ 87,699.7 26.8% $50,742.8 11.3% 239,738.6 73.2 399,283.7 88.7 $327:438,3 100.0% $450,026.5 100.0% As can be seen above, approximately 82% of the total system capital costs identified in this study were allocated to future development. The existing Water and Wastewater Impact Fees do not adequately recover the identifiable cost of plant capacity and transmission line (backbone) capacity allocable to incremental customer growth. The County should consider adopting the proposed Water and Wastewater Impact Fees as presented in this report and shown below: Rate per ERC Water $2,740 Wastewater $2,840 A summary of the proposed impact fees by customer classification is shown on Table ES- 2 at the end of this summary. 12. The recommended water system impact fee of $2,740 represents an increase of $1,465 or essentially a doubling of the existing fee. The recommended wastewater impact fee of $2,840 represents an increase of $1,265 above the current fee. Although the adjustments in the proposed fees are material, the level of fees charged is directly related to the anticipated capital improvement program of the County as identified in the 2001 System Master Plan Update. 13. The following is a comparison of water and wastewater impact fees charged by other neighboring Florida counties for typical residential users. A more detailed comparison of 1125-01 hRateStudy\Exe_Sum ES-5 A~NOA IT£# DI~~ 200'1 Collier County Water and Wastewater System Impact Fee Study 14. 15. 16. the residential impact fees expressed on a per ERC basis (typical for residential impact fee) is included on Table ES-1 attached herein. Water ($/ERC) Wastewater ($/ERC) Combined ($/ERC) Collier County: Existing $1,275 $1,575 $2,850 Proposed $2,740 $2,840 $5,580 Other Neighboring Jurisdictions: Charlotte County $1,518 $2,570 $4,088 Hillsborough County [ 1 ]: Northwest $2,275 3,150 5,425 South/Central 2,185 3,265 5,450 Lee County [2] 1,020 1,460 2,480 Sarasota County [2] 2,720 1,642 4,362 [ 1 ] Amount includes application of an Accrued Guaranteed Revenue Charges applied to new development of $2,250 per combined water and wastewater ERC. [2] Counties that are in the process of reviewing the current impact fees. As a result of the County's extensive ongoing capital improvements program relative to providing water service to its retail customers, the Water and Wastewater Impact Fees should be reviewed for adequacy not less than every two (2) years. The proposed impact fees should be adopted and implemented by the County as early as possible recognizing current capital projects underway in order to fully recover the cost of constructing new water and wastewater facilities intended to serve new development. The proposed impact fee levels have been recognized in the capital finance plan being prepared by the County for its review of rates for service and the development of funding plans for the capital program. 1125-01LRateStudyLExe_Sum ES -6 t. ?: ......... Table ES-1 Collier County, Florida Impact Fee Study Comparison of Impact Fees for Water and Wastewater Service (1) Line No. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Residential 5/8" x 3/4" Meter Description Water Wastewater Combined Collier County -Existing Collier County - Proposed Other Florida Utilities: $ 1,275 $ 1,575 $2,850 $2,740 S2.840 $5,580 City of Bradenton $872 $609 $1,481 City of Boca Raton 4,638 3,721 8,359 Bonita Springs Utilities, Inc. (*) 1,550 2,183 3,733 Brevard County 1,903 2,257 4,160 Charlotte County 1,518 2,570 4,088 Englewood Water District 2,267 1,690 3,957 FL Water Services - Lehigh - Lee County 2,168 2,546 4,714 City of Fort Myers 2,023 1,966 3,989 Hillsborough County (2) Northwest Service Area 2,275 3,150 5,425 South/Central Service Area 2,380 3,305 5,685 Lee County (*) 1,020 1,460 2,480 Manatee County 1,045 1,378 2,423 City of Naples 870 1,220 2,090 City of North Port 860 1,280 2,140 Orange County 1,095 2,487 3,582 Pinellas County 512 2,060 2,572 City of Punta Gorda 2,000 1,500 3,500 Sarasota County (*) 2,720 1,642 4,362 City of Tampa 1,000 1,844 2,844 Other Florida Utilities' Average $1,722 $2,046 $3,768 (1) (2) (*) Unless otherwise noted, amounts shown reflect residential rates in effect October 2001 and are exclusive of taxes or franchise fees, if any, and reflect rates charged for inside the city service. All rates are as reported by the respective utility. This comparison is intended to show comparable charges for similar service for comparison purposes only and is not intended to be a complete listing of all rates and charges offered by each listed utility. Fees shown include Allowance For Funds Prudently Invested of $940 for water and $1,335 for wastewater. Indicates that current fees are under review. ImpactFeesExecSummTables; Impact Fee ES-I NO' ' 2001 Line No. Table ES-2 Collier Count' Water, Wastewater, and Reuse System Water and Wastewater System Summary Comparison of Existing and Proposed Rates EXISTING PROPOSED WATER IMPACT FEE Meter Size 1 5/8" 2 3/4" 3 1" 4 1-1/4" 5 I-1/2" 6 2" 7 3" 8 4" 9 6" 10 8" 11 10" 12 12" WATER IMPACT FEE Rates Meter Size $ 1,275.00 5/8" 1,275.00 3/4" 3,188.00 1" 1 - 1/4" 6,375.00 1-1/2" 10,200.00 2" 20,400.00 3" 31,875.00 4" 63,750.00 6" 114,750.00 8" 184,875.00 10" 274.125.00 12" COST PER GALLON $ 3.643 COST PER GALLON SEWER SEWER iMPACT FEE iMPACT FEE 13 Meter Size Rates Meter Size 14 5/8" S 1,575.00 5/8" 15 3/4" 1,575.00 3/4" 16 1" 3,938.00 1" 17 1-1/4" 1-1/4" 18 l-1/2" 7,875.00 1-1/2" 19 2" 12,600.00 2" 20 3" 25,200.00 3" 21 4" 39,375.00 4" 22 6" 78,375.00 6" 23 8" 141,750.00 8" 24 10" 228,375.00 10" 25 12" 338.625.00 12" $ 5.625 COST PER GALLON COST PER GALLON Rates S 2,740.00 2,740.00 6,850.00 8,905.00 13,700.00 21,920.00 41,100.00 68,500.00 137,000.00 219,200.00 397,300.00 589,100.00 S 7.829 Rates $ 2,840.00 2,840.00 7,100.00 9,230.00 14,200.00 22,720.00 42,600.00 71,000.00 142,000.00 227,200.00 4 [ 1,800.00 610,600.00 $ 11.360 ~. /0 ,,. _