Agenda 02/22/2011 Item # 8B
2/22/2011 Item 8.B.
EXECUTIVE SUMMARY
Recommendation to adopt a Resolution amending Schedule Seven of Appendix A to Section
Four of Collier County Ordinance No. 2001-73, as amended, the Collier County Water-
Sewer District Uniform Billing, Operating and Regulatory Standards Ordinance. This
amendment includes proposed decrease in rates for Allowance for Funds Prudently Invested,
with an effective date of March 1, 2011, for Schedule Seven.
OBJECTIVE: Adopt a Resolution amending Schedule Seven of Appendix A to Section Four of
Collier County Ordinance No. 2001-73, as amended, the Collier County Water-Sewer District
Uniform Billing, Operating and Regulatory Standards Ordinance.
CONSIDERATIONS: On June 6, 2006, the Board of County Commissioners (Board) adopted
Ordinance No. 2006-27 creating a new charge called Allowance for Funds Prudently Invested
(AFPI). On June 24, 2008, the Board of County Commissioners (Board) adopted Resolution No.
2008-203 amending Ordinance No. 2006-27, and decreasing the water and sewer AFPI Fees in
Schedule Seven.
AFPI fees are designed to recover a portion of the interest component associated with the debt
service in financing capital projects. The AFPI partially recovers the cost of carrying available
capacity in advance of capacity reservation. Public Resources Management Group (PRMG), the
Water-Sewer District's rate study consultant, recommends a rate decrease in AFPI fees per the
Schedule Seven attached, Exhibit A. The rate decrease, if approved by the Board, will become
effective March 1, 2011.
Staff reviewed PRMG's fee studies with the Productivity Committee on November 17, 2010,
December 15,2010, and on January 19,2011.
FISCAL IMP ACT: Assuming annual growth of 1,000 water Equivalent Residential Connections
(ERCs) and 1,000 wastewater ERCs, the revenues to be generated by these recommended AFPI
fees for the fiscal year 2012 are estimated to be $1.37 million in Collier County Water-Sewer
District Operating Fund No. 408.
LEGAL CONSIDERATIONS: The proposed Resolution has been approved for legal sufficiency
by the Office of the County Attorney. This action requires a majority vote by the Board. - JBW
GROWTH MANAGEMENT IMPACT: The proposed AFPI fees are designed to provide
funding for debt service. The fee partially recovers the cost of carrying available capacity in
advance of capacity reservation.
RECOMMENDATION: Adopt a Resolution amending Schedule Seven of Appendix A to
Section Four of Collier County Ordinance No. 2001-73, as amended, the Collier County Water-
Sewer District Unifonn Billing, Operating and Regulatory Standards Ordinance. This amendment
includes proposed decrease in rates for Allowance for Funds Prudently Invested Fee Schedule
Seven, with an effective date of March 1,2011.
Packet Page -105-
2/22/2011 Item 8.B.
PREPARED BY: Tom Wides, Operations Support Director, Public Utilities Division
Packet Page -106-
2/22/2011 Item 8.B.
COLLIER COUNTY
Board of County Commissioners
Item Number: 8.B.
Item Summary: This item was continued from the Feburary 8,2011 BCC meeting.
Recommendation to adopt a Resolution amending Schedule Seven of Appendix A to Section
Four of Collier County Ordinance No. 2001-73, as amended, the Collier County Water-Sewer
District Uniform Billing, Operating and Regulatory Standards Ordinance. This amendment
includes proposed decrease in rates for Allowance for Funds Prudently Invested, with an
effective date of March 1, 2011, for Schedule Seven. (Companion Item to 8B and 80)
Meeting Date: 2/22/2011
Prepared By
Name: SridharBa]a
Tit]e: Management/Budget Ana]yst, Senior,Uti]ities Finane
2/15/20]] 2:50:54 PM
Submitted by
Tit]e: Director - Operations Support - PUD,Uti]ities Fina
Name: WidesTom
2/15/20] ] 2:50:56 PM
Approved By
Name: WidesTom
Tit]e: Director - Operations Support - PUD,Uti]ities Fina
Date: 2/] 5/2011 3:01 :58 PM
Name: HapkeMargie
Tit]e: VALUE MISSING
Date: 2/15/2011 3:09:54 PM
Name: WhiteJennifer
Tit]e: Assistant County Attorney,County Attorney
Date: 2/15/20] 13:58:3] PM
Packet Page -107-
2/22/2011 Item 8.B.
Name: DeLonyJim
Title: Administrator - Public Utilities,
Date: 2/15/2011 4:33:37 PM
Name: GreenwaldRandy
Title: ManagementlBudget Analyst,Office of Management & B
Date: 2/16/2011 8:13:13 AM
Name: KlatzkowJeff
Title: County Attorney,
Date: 2/16/2011 9:15:46 AM
Name: IsacksonMark
Title: Director-Corp Financial and Mgmt Svs,CMO
Date: 2/16/2011 9:36:41 AM
Packet Page -108-
2/22/2011 Item B.B.
RESOLUTION NO. 2011 ~
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AS THE GOVERNING BODY OF
COLLIER COUNTY AND AS EX OFFICIO THE GOVER.~ING BOARD
OF THE COLLIER COUNTY WATER SEWER DISTRICT, AMENDING
SCHEDULE SEVEN OF APPENDIX A TO SECTION FOUR OF THE
COLLIER COUNTY ORDINA.l'fCE NO. 2001-73, AS AMENDED, TITLED
THE COLLIER COUNTY W A TER~SEWER DISTRICT UNIFOR1'\1
BILLING, OPERA TING AND REGULA TORY ST ANDARDS
ORDINANCE IN ORDER TO DECREASE THE ALLOWANCE FOR
FUNDS PRUDENTL Y INVESTED; AND PROVIDING FOR AN
EF}1'ECTIVE DATE OF MARCH 1,2011, FOR SCHEDULE SEVEN.
WHEREAS, On June 24, 2008, the Board adopted Resolution No. 2008-203 amending
Ordinance No. 2006-27, and decreasing the water and sewer AFPI fees in Schedule Seven; and
WHEREAS, Collier County has retained the Consultant to review the existing
Allowance for Funds Prudently Invested (AFPI) fees and to recommend appropriate changes to
those rates; and
'WHEREAS, staff has thoroughly reviewed the Consultant's findings and
recommendations and concurs with the rcconunended changes for \~later and sewer AFPI fees;
and
WHEREAS, the Board of County Commissioners tinds that it is in the interest of health,
safety and welfare of the customers of the district to accept the recommendations of the
Consultant and from staff.
NO\V, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AS THE GOVERNING BODY
OF COLLIER COUNTY AND AS EX OFFICIO THE GOVERNING BOARD OF THE
COLLIER COUNTY 'WATER SEWER DISTRICT, that:
The Board of County Commissioners, after advertised public hearing:
Accepts the Consultant's and staff's recommendation and proclaims that the
Allowance for Funds Pntdently Invested fees; as set f011h in the amended Schedule Seven to
Appendix A to Section Four of Collier County Ordinance No. 2001-73, as amended, titled dIe
Collier County Water-Sev~'er District Uniform Billing, Operating and Regulatory Standards
Ordinance, \vhich is incorporated herein.; and this revised rates for Schedule Seven attached as
Exhibit A 'vviII take effect at 12:01 A.M on Tuesday, March 1,2011.
Packet Page -109-
2/22/2011 Item 8.B.
nus RESOLUTION ADOPTED after motion; second and I majority vote favoring
adoption this day . 20 II.
ATTEST:
DWIGHT E. BROCK, CLERK
By:
, Deputy Clerk
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA, AS
THE GOVER.NINO BODY OF COLLIER
COUNTY AND AS EX OFFICIO THE
GOVERNING BOARD OF THE COLLIER
COUNTY WATER SEWER DISTRICT
Approval as to form
and legal Sufficiency:
-"\,""",~""'" -', l
'". \ \.., l,-'-.I\.''I.._/~
JennifefB. White
Assistant County Attorney
By:
FRED W. COYLE, CHAIRMAN
!O:;J
~
Packet Page -110-
2/22/2011 Item 8.B.
PUBLIC UTILITIES DIVISION
COLLIER COUNTY WATER-SEWER DISTRICT
UNIFORM BILLING, OPERATING, AND REGULA TORY STANDARDS ORDINANCE
APPENDIX A - FEES, RATES AND CHARGES
SCHEDULE 7 - ALLOW ANCE FOR FUNDS PRUDENTLY INVESTED (AFPI) FEES Page I of I
The revised AFPI fee schedule is proposed to become effective on March I, 2011.
AFPl Fee Schedule Per ERC - Water System
Payment Calendar Year
Month 2010 II] 2011 11] 2012 2013 2014 2015 2016
January $5 I 8.80 $674.44 $741.76 $834.48 $834.48 $834.48 $834.48
February 531. 77 687.41 753.35 834.48 834.48 834.48 834.48
March 544.74 625.86 764.94 834.48 834.48 834.48 834.48
April 557.71 637.45 776.53 834.48 834.48 834.48 834.48
May 570.68 649.04 788.12 834.48 834.48 834.48 834.48
June 583.65 660.63 799.71 834.48 834.48 834.48 834.48
July 596.62 672.22 811.30 834.48 834.48 834.48 834.48
August 609.59 683.81 822.89 834.48 834.48 834.48 834.48
September 622.56 695.40 834.48 834.48 834.48 834.48 834.48
October 635.53 706.99 834.48 834.48 834.48 834.48 834.48
November 648.50 718.58 834.48 834.48 834.48 834.48 834.48
December 661.47 730.17 834.48 834.48 834.48 834.48 834.48
AFPI Fee Schedule Per ERC - Wastewater System
Payment Calendar Year
Month 201011] 2011 II] 2012 2013 2014 2015 2016
January $421.60 $548.08 $577.28 $649.44 $649.44 $649.44 $649.44
February 432.14 558.62 586.30 649.44 649.44 649.44 649.44
March 442.68 487.08 595.32 649.44 649.44 649.44 649.44
April 453.22 496.10 604.34 649.44 649.44 649.44 649.44
May 463.76 505.12 613.36 649.44 649.44 649.44 649.44
June 474.30 514.14 622.38 649.44 649.44 649.44 649.44
July 484.84 523.16 631.40 649.44 649.44 649.44 649.44
August 495.38 532.18 640.42 649.44 649.44 649.44 649.44
September 505.92 541.20 649.44 649.44 649.44 649.44 649.44
October 516.46 550.22 649.44 649.44 649.44 649.44 649.44
November 527.00 559.24 649.44 649.44 649.44 649.44 649.44
December 537.54 568.26 649.44 649.44 649.44 649.44 649.44
II] AFPI fees for January 2010 through February 201 I were established during the previous rate study performed by PRMG in 2008.
Packet Page -111-
2/22/2011 Item 8.B.
'.
18D · Monday, February 14, 2011 · Napl~~ DaOyNew.
NOTICE OF PUBLIC HEARING
;
Notice Is hereby given that the Board of County Commissioners, of Collier ;:CouritY
will hold a pul)lichearing on Tu~sday, February 22, 2011, In the BoardroOm;,'3rd
FloGr, Administration Building, Collier County Government ~enter, 3299 ,~~~::TIl- '
miami Trail, Naples, Florida. The meeting will begin at 9:00 A.M. The tltli'df'the '
proposed Resol~ion Is as follows:' ";:T'J::'~,:; i;
A RESOLUTioN OF THE BOARD Of COUNTY COMMISSIONERS OF COLLI'~i;c:ou.
NTY, FLORIDA. AS THE GOVERNING BODY OF COLLIER COUNTY AND ASEX'OFFI.
CIO THE GOVERNING BOARD OF THE COWER COUNTY WATER SEWERDISlRICT,
AMENDING SCHEDULE SEVEN OF APPENDIX A TO SECTION FOUR OF THE, COLLIER
COUNTY ORDINANCE NO. 2001-73, AS AMENDED, TITLED THE COLLIERCOUNTV
WATER-SEWER DISTRICT UNIFORM BILLING, OPERATING AND REGULATORY ,STAN- '
DARDS ORDINANCE IN ORDER TO DECREASE THE ALLOWANCE FOR FUNDS PRU"
DENTLY INVESTED; AND PROVIDING FORAN EFFECTIVE DATE OF MARCH 1,2011".,;
Copies of the proposed Resolution are on file with the Clerk to the Board and are
available for inspection. All interested parties are invited to attend and be heard.;; ",
NOTE: All Persons wishing to speak on any agenda item must register ,wit!1the
County Administrator prior to, presentation of the agenda item to be addressed.
Individual speak.ers will be limited to 3 minutes on any item. The selection of an in-
dividual to speak on behalf of an organization or group is encouraged.lfri!cog-
nized by the Chair, a spokesperson for a group or organization maybe allotted 10 '
minutes to speak on an item, ' '
Persons wishing to have written or graphic materials included in the Board agenda
packets must submit said material a minimum of 3 weeks prior to the respective
public hearing. In any case, written materials intended to be considered by the
Board shall be submitted to the appropriate County ,staff a Iilinimum of ,seven days ,
prior to the public hearing,' All material used in presentations before the Board
will become a permanent part of the record. .' i
Any person 'who decides to appeal a decision of the Board will need a record of the
proceedings pertaining thereto and therefore, may need to ensure that a verbatim
record of, the proceeClings is made, which record includes the testimony andevi-
dence upon which the appeal is based. /
If you are a person with a disability who needs any accommodation in order to par-
tiCIpate in this proceeding. you are entitled, at no cost to you, to the provision of
certain assistance. Please contact the Collier County Facilities Management Di!f)art-
ment.. located at 333S Tamiami Trail East, Building W. Naples.FIOri~hi 34112, ,(239)
252-8380. Assisted listening devices for t~e hearing impaired,_ are available In the
County Commissioners' Office. . ' " ' '
BOARD OF COUNTY COMMISSIONERS
,COLUERCOUNTY. FLORIDA, >~:"'!'.J:
FRED COYLE, CHAIRMAN
DWIGHT E. BROCK, CLERK
By: Martha Vergara. Deputy Clerk
(SEAL)
, ,
Fl!bruO'lN 14' 7011
N61889794
Packet Page -112-