Agenda 09/22/2015 Item #16A20 9/22/2015 16.A.20.
EXECUTIVE SUMMARY
Recommendation to adopt a resolution decreasing the regulatory assessment fee from three percent
to two percent of gross revenues for nonexempt privately owned water and wastewater systems
subject to local regulation, effective December 1, 2015, as approved by the Board of County
Commissioners in the fiscal year 2016 budget and as approved by the Collier County Water and
Wastewater Authority.
OBJECTIVE: To reduce the existing Regulatory Assessment Fee ("RAF") of private water and
wastewater utilities subject to local regulation from 3%to 2%,effective December 1, 2015.
CONSIDERATIONS: Utilities regulated by Collier County include Ave Maria Utility Company, North
Marco Utility, Orange Tree Utility Company, and the Florida Governmental Utility Authority,pursuant to
an Interlocal Agreement.
Fee History—With the recommencement of Collier County regulating privately held and investor owned
water and wastewater utilities in 1996, the County initially collected regulatory assessment fees from
utilities at the rate of 41/2% of each utility's gross revenues—the same rate charged by the Florida Public
Service Commission during the period of 1986 through 1995.
On October 1, 1997, the Board of County Commissioners(Board) decreased the fee from 41/2%to 3%, on
October 1, 1998, the Board decreased the fee from 3%to 11/2%, on October 1, 2003, the Board increased
the fee from 11/2 %to 2%, and on March 1, 2009, the Board increased the fee from 2% to 3%. Since the
Board assumed the regulatory oversight of these utilities in 1996, reductions of the original fee charged
by the Florida Public Service Commission (PSC) have resulted a savings of$5.7 million to consumers
over the last eighteen years (FY98 through FY15) while allowing the County to exercise its home rule
authority by offering local regulatory representation and rate oversight.
County regulatory revenues generated by these fees have historically paralleled staff expenditures related
to the regulatory process, while maintaining sufficient reserves to fund specialized legal, engineering and
rate consultants. During the past several years, revenues have increased while costs have remained
steady, resulting in an increase in the reserve balance from approximately $500,000 in FY09 to a
budgeted $985,800 in FY16.
FY16 Budget — On May 13, 2015, the proposed FY16 regulatory budget (Fund 669) and staffs
recommendation to decrease the regulatory fee was presented to the Collier County Water & Wastewater
Authority. The proposed decrease of the RAF from 3% to 2% would allow for increased savings to
privately held utility customers and equates to a full 2.5% points below the PSC`s 41/2%. The Authority
unanimously recommended Board approval of the decrease in the regulatory fee.
The decrease in the RAF to 2% would result in a decrease in annual revenues of approximately $100,000.
To offset the loss in revenue, one full-time staff position has been moved out of the Fund (669) in FY16,
reducing the fully weighted payroll costs by $175,000. The movement of the FTE out of the fund would
still provide adequate staff to support the Utility Regulation function.
It is desirable to maintain the integrity of the Reserves to prepare for expected rate cases, some requiring
the hiring of outside rate consultants and legal staff to handle additional duties. With the strong reserve
level coupled with the lowering of payroll costs, the Fund (669) is sufficiently funded to handle a
reduction of the RAF from 3% to 2%. This recommended decrease requires a public hearing before the
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9/22/2015 16.A.20.
Board sixty days prior to the effective date of the adjustment of the fee, pursuant to Ordinance No. 96-6,
as amended.
FISCAL IMPACT: County regulatory oversight of privately held and investor owned water and
wastewater utilities has no impact on the General Fund. The decrease of the regulatory assessment fee
from 3% to 2% is expected to decrease annual revenues to the Utility Regulation Trust Fund (669) by
approximately $100,000, but will be offset by moving one full-time position to a different fund.
LEGAL CONSIDERATIONS: This item is approved as to form and legality, and requires majority vote
for Board approval.—SRT
GROWTH MANAGEMENT IMPACT: There are no growth management impacts associated with this
Executive Summary.
RECOMMENDATION: That the Board adopts the accompanying resolution to decrease the Regulatory
Assessment Fee from 3% to 2%, effective December 1, 2015, thereby authorizing the Collier County
Water and Wastewater Authority to adjust water and/or wastewater rates of regulated utilities, as
appropriate.
Prepared By: Kenneth Kovensky,Director, Operations &Regulatory Management Division,
Growth Management Department
Attachment: Resolution
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9/22/2015 16.A.20.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.A.16.A.20.
Item Summary: Recommendation to adopt a resolution decreasing the regulatory
assessment fee from three percent to two percent of gross revenues for nonexempt privately
owned water and wastewater systems subject to local regulation, effective December 1, 2015,
as approved by the Board of County Commissioners in the fiscal year 2016 budget and as
approved by the Collier County Water and Wastewater Authority.
Meeting Date: 9/22/2015
Prepared By
Name: PuigJudy
Title: Operations Analyst, Growth Management Department
8/25/2015 2:29:11 PM
Submitted by
Title: Division Director-Operations Support. Growth Management Department
Name: KovenskyKenneth
8/25/2015 2:29:12 PM
Approved By
Name: Puigiudy
Title: Operations Analyst. Growth Management Department
Date: 9/8/2015 1:08:39 PM
Name: Frenchiames
Title: Deputy Department Head-GMD, Growth Management Department
Date: 9/8/2015 5:24:31 PM
Name: MarcellaJeanne
Title: Executive Secretary, Growth Management Department
Date: 9/9/2015 9:19:05 AM
Name: TeachScott
Title: Deputy County Attorney. County Attorney
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9/22/2015 16.A.20.
Date: 9/9/2015 1:05:40 PM
Name: IsacksonMark
Title: Division Director-Corp Fin &Mgmt Svc, Office of Management&Budget
Date: 9/9/2015 3:38:54 PM
Name: KlatzkowJeff
Title: County Attorney,
Date: 9/10/2015 8:34:12 AM
Name: CasalanguidaNick
Title: Deputy County Manager, County Managers Office
Date: 9/12/2015 2:20:41 PM
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9/22/2015 16.A.20.
RESOLUTION NO.2015-
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, PURSUANT TO SECTION 1-12(E), COLLIER
COUNTY ORDINANCE NO. 96-6, AS AMENDED, ESTABLISHING THE
REGULATORY ASSESSMENT FEE OF 2.00 PERCENT OF GROSS REVENUES
FOR NONEXEMPT PRIVATELY OWNED WATER AND WASTEWATER
UTILITIES SUBJECT TO THE REGULATORY ASSESSMENT FEE
PURSUANT TO ORDINANCE 96-6, AS AMENDED,AS WELL AS ALL OTHER
WATER AND WASTEWATER UTILITIES BOUND BY INTERLOCAL
AGREEMENT FOR REGULATORY OVERSIGHT; DIRECTING THE
COLLIER COUNTY WATER AND WASTEWATER AUTHORITY TO ADJUST
WATER AND/OR WASTEWATER RATES OF SAID UTILITIES, AS
APPROPRIATE.
WHEREAS, Resolution No. 96-104 excluded Collier County from the provisions
of Chapter 367, Florida Statutes, thereby assuming certain subject matter jurisdiction
over privately owned nonexempt water and wastewater utilities operating in
unincorporated areas of Collier County;and
WHEREAS, Ordinance No. 96-6, as amended, established the Collier County
Water and Wastewater Authority (the "Authority") and its specific powers and duties;
and
WHEREAS, Section 1-12 (E), Ordinance No. 96-6, as amended, provides for the
Board of County Commissioners(the"Board") to determine the amount of the regulatory
assessment fee from time to time after public hearing, but not to become effective earlier
than sixty(60)days after adoption of each such implementing Resolution; and
WHEREAS, on May 13, 2015, staff recommended an adjustment of the
regulatory assessment fee from 3.00 percent to 2.00 percent to the Authority; and the
Authority unanimously recommended approval of the decrease in regulatory fee to the
Board; and
WHEREAS, the Board indicated its concurrence with the staff recommendation
to adjust the fee; and
WHEREAS, pursuant to Ordinance No. 96-6, as amended, only the Board may
adjust regulatory assessment fees after a duly advertised public hearing; and
WHEREAS, the Authority is authorized to adjust water and wastewater rate
tariffs of nonexempt privately owned water and wastewater utilities under its jurisdiction
to reflect each change in regulatory assessment fees authorized by the BOARD.
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NOW, THEREFORE, BE IT RESOLVED by the Beard of County
Ccaimissioners of Collier County,Florida that
1. The regulatory assessment fee is hereby established at 2.00 percent,
effective December 1, 2015, of gross revenues for all non-exempt
privately owned water and wastewater utilities subject to the regulatory
assessment fee pursuant to Ordinance 96-6, as amended, as well as all
other water and wastewater utilities bound by interlocal agreement for
regulatory oversight.
2. The Collier County Water and Wastewater Authority shall adjust the water
and wastewater tariffs of all utilities subject to the regulatory assessment
fee to reflect the decrease in the regulatory assessment fee.
This Resolution adopted this day of , 2015 after motion,
second,and majority vote favoring adoption.
ATTEST:
DWIGHT E.BROCK,Clerk BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY,FLORIDA
BY: By:
Deputy Clerk TIM NANCE,CHAIRMAN
Approved as to form and legality:
By:<#R.Teach,
Deputy County Attorney
2
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