CCWWA Minutes 05/13/2015 Ot' '
F R, May 13,2015
' OF THE MEETING OF THE COLLIER COUNTY
WATER AND WASTEWATER AUTHORITY
Naples, Florida, May 13, 2015
LET IT BE REMEMBERED, that the Collier County Water and Wastewater Authority in
and for the County of Collier, having conducted business herein, met on this date at
11:00A.M. in REGULAR SESSION at the Collier County Growth Management Division
Building Conference Room 609/610, 2800 N. Horseshoe Drive, Naples, Florida, with the
following members present:
CHAIRMAN: Dr. Sherwin Ritter(Excused)
VICE CHAIRMAN: Patricia Sherry
Lowell Lam
Jerry Morgan
Dr. Fay Biles (Excused)
ALSO PRESENT: Jamie French, Deputy Administrator
Scott Stone, Assistant County Attorney
Ken Kovensky, Director, Operations and Regulatory Management
Ashley Lang, Budget Analyst
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May 13, 2015
I. Call to Order(Determination of Quorum)and Roll Call
Vice Chairman Sherry called the meeting to order at 11:00 AM.
Roll call was taken and a quorum established.
II. Approval of Agenda—Meeting of May 13,2015
Mr. Morgan moved to approve the Agenda. Second by Mr. Lam. Carried unanimously 3-0.
III. Approval of Minutes—Meeting of February 23,2015
Mr. Lam moved to approve the minutes of the February 23,2015 meeting as presented. Second by Mr.
Morgan. Carried unanimously 3-0.
IV. Items Requiring Action by Authority
A. Final Order 2015—01 Annual Price Index
Staff presented "Final Order 2015-01 Annual Price Index" for consideration. They noted Florida
Public Service Commission(FPSC)Order No. PSC-15-0072-PAA-WS was issued on January 27,
2015,establishing the 2015 Price Index of 1.57 percent and recommends it be approved by the
Authority.
Mr. Lam moved to approve Final Order No. 2015-01 as presented. Second by Mr. Morgan. Carried
unanimously 3-0.
B. Annual Election of Officers
Mr. Lam moved to appoint Patricia Sherry as Chairman of the Collier County Water and
Wastewater Authority. Second by Mr. Morgan. Carried unanimously 3—0.
Ms. Sherry assumed the Chair.
Mr. Morgan moved to appoint Lowell Lam as Vice Chairman of the Collier County Water and
Wastewater Authority. Second by Chairman Sherry. Carried unanimously 3—0.
C. Budget and Staffing
Staff submitted the Memo—Subject: "Authority Agenda Item—May 13, 2015 Budget and Staffing
dated May 7, 2015 for consideration. They provided an overview of the Memo including:
• The Authority is currently supported by the Office of Utility Regulation staff of three
employees, including the Deputy Department Head/Executive Director of the Authority,the
Director of Operations& Regulatory Management,and a Management/Budget Analyst.
• In the proposed FY 2016 budget,the Deputy Department Head will be moving to a different
fund,dropping the fully weighted payroll costs for the remaining two employees from
$363,900 to$199,600.
• The current 3%Regulatory Assessment Fee(RAF) included in each regulated utility's service
rates generated approximately$306,400 during FY 2014.
• Pending takeover of Orange Tree Utility Company("OTU")by the County, it is anticipated the
Authority will no longer be receiving OTU's RAF,which in FY 2014 totaled approximately
$54,000.
• A decrease in the RAF to 2%,with the anticipated elimination of the OTU revenue, would
result in expected revenue of$167,900 in FY2016.
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May 13,2015
• The operation will still have the necessary funds available to engage outside consultants should
the need arise.
• Following turnover of the OTU,the Authority will retain jurisdiction over Ave Maria Utility
Company, LLP,North Marco Utility and oversight of the Florida Governmental Utility
Authority(FGUA).
Mr. Lam moved to accept the Report as presented. Second by Chairman Sherry. Carried
unanimously 3—0.
Mr. Lam moved to approve the proposed Regulatory Assessment Fee of 2 percent. Second by
Chairman Sherry. Carried unanimously 3—0.
V. Staff Discussion
A. Orange Tree Utility Company's Annual Report for 2013,2014 and Second Quarter Regulatory
Assessment Fees Update
Staff submitted the Memo—Subject: "Orange Tree Utility's Annual Report for 2013, 2014 and
Second Quarterly Regulatory Assessment Fees Update"dated May 11, 2015 for consideration and
reported:
• Staff did not receive the Utility's Annual report for 2013 until May 6, 2015.
• The 2014 Annual Report was due by April 30,2015; however it has not been received to date.
• The penalties to date for failure to submit the 2013 Annual Report are as follows: Fines at
$10/day from July 1, 2014 through May 8,2015 ($3,050.00)and a late fee of one percent of
the fine amount at$36.66.
Speaker
Roberto Bollt,Orange Tree Utility Company stated failure to submit the 2013 Annual Report was
an oversight by the Utility as they were dealing with the"turnover process" including addressing
issues raised by an auditor. The 2014 Annual Report is being prepared and should be submitted within
30-45 days.
Mr. French reported a 30 day extension may be granted by Staff for submittal of the 2014 Annual
Report. A longer period extension requires approval by the Authority.
Mr. Lam moved to grant an extension to Orange Tree Utility,LLP until June 30,2015 for
submitting their 2014 Annual Report. Second by Mr. Morgan. Carried unanimously 3—0.
Staff reported the Utility will be assessed$3,050.00 in fines and a$36.50 late fee for the May 8,
2015 submittal of their 2013 Annual Report.
B. Ave Maria Utility Company Test Year 2014 Discussion
Staff reported:
• The Utility continues to lose money as documented in their 2014 Annual Report.
• Staff was notified by the Utility's legal counsel (Sundstrom& Mindlin, LLP)the Utility
intends to file a request for"general rate relief'(rate case).
• The relief requested is a 5 percent increase above the annual inflation adjustment.
• In order to file a"rate case,"a test year is required to be established.
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May 13,2015
• The Utility is requesting 2014 be established as the required"test year."
Chairman Sherry moved to Grant the request of Ave Maria Utility Company,LLP establishing 2014
as a "Test Year"for a potential "rate case." Second by Mr. Lam. Carried unanimously 3—0.
VI. Open to Public
None
VII. Authority Member Discussion
None
There being no further business for the good of the County,the meeting was adjourned by the order of
the Chair at 12:02 PM.
COLLIER COUNTY WATER AND
WASTEWATER AUTHORITY
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f Age
o • Lam, ice ' man
These Minutes were approved by the Board/Chairman on t f P3 (5 ,as presented /or as
amended
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