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Agenda 07/10/2018 Item #11B07/10/2018 EXECUTIVE SUMMARY Recommendation to advertise a Resolution expanding the Collier County Water-Sewer District’s Service Area to coincide with the unincorporated area permitted by Chapter 2003-353, Laws of Florida. _____________________________________________________________________________________ OBJECTIVE: Advertise a Resolution to expand the service area for the Collier County Water -Sewer District (“CCWSD”) in accordance with the guiding principles of the Integrated Water Resources Management Strategy adopted by the Board of County Commissioners ("Board") on December 8, 2015, agenda item 16C4. CONSIDERATIONS: On November 3, 2015, the Department Heads from the Public Utilities Department and the Growth Management Department presented their joint Vision, Mission and Guiding Principles to the Board regarding long term water resource management strategies. The Board formally adopted the guiding principles, one of which is “CCWSD Special Act Boundaries will be the governing future service area,” effectively indicating expansion of the CCWSD service area. A resolution to expand the CCWSD service area is included as Attachment 1. The Resolution, including proposed expanded CCSWD maps, is Exhibit A. The item must be advertised once a week for two consecutive weeks in a newspaper of general circulation in Collier County. The Board is Ex-officio the Governing Board of the Collier County Water-Sewer District. As such, Chapter 2003-353, Laws of Florida, the Special Act that created the CCWSD, grants certain powers to the Board, including jurisdiction over service area boundaries. Section 3, states in part: (3) Any portion of the unincorporated area of Collier County, except the Immokalee Water and Sewer District, and the areas described in subsection (5), paragraphs A., B., C., and D., may be added to the boundaries of the Collier County Water-Sewer District by adoption of a resolution by the District Board. Paragraphs A., B., C., and D., describe the water and sewer service areas of the City of Naples, Marco Island Utilities, City of Golden Gate (acquired by the CCWSD on March 1, 2018) and Everglades City/Immokalee Water and Sewer District, respectively. Recent growth patterns in the northeast and southeast areas of the county have identified opportunities for expansion of economically feasible services. Water and sewer services for development located within the service area boundaries would be required to seek such service from the CCWSD. If the services were not available or the CCWSD could not serve the development in an economically feasible manner, the development would be free to seek services from other sources. While the expanded boundaries will encompass estate-zoned areas, the CCWSD will continue its policy of not extending services to estate-zoned properties. Staff has met with the representatives of Hogan Island Village (Barron Collier Companies) to discuss our desire to provide comprehensive water and sewer services. While we believe that continued dialogue will result in an agreement, we have agreed to make clear to the Board that should we not agree, the CCWSD expansion will not prohibit Barron Collier from a public hearing to consider their desire to provide their own services. We firmly believe that a comprehensive contiguous district is in t he best interest of the citizens and environment, provides for reliability, resiliency, and quality; and gives the CCWSD the financial stability to respond to growth and maintain services. The special act was established in part to discourage multiple private utilities that often fall into disrepair 11.B Packet Pg. 224 07/10/2018 and out of compliance. The experiences of integrating the Orange Tree Utility Company and acquiring the Golden Gate City Utility have shown the process to be cumbersome and expensive. By expanding the CCWSD boundaries as requested, potential developments such as Winchester Lakes and Hogan Island Village would be included in the CCWSD, while previously they were not. Below is a summary of development activity contained within the proposed jurisdictional boundary (See Attachment 2 - Map showing future development): Winchester Lakes has stated an interest in being served by the CCWSD. On May 11, 2017, the Ave Maria Utility Company requested expansion of its service area to serve Hogan Island Village. On June 2, 2017, the County Manager filed an objection to this request with the Director of the Collier County Utility Authority. (See Attachment 3 - Letter.) Rural Lands West is contained within the Big Cypress Stewardship District (BCSD), and therefore has the right to provide its own water and wastewater services, in accordance with Section 3(1)(j) & (k) of Chapter 2004-423, Laws of Florida, in addition to the CCWSD’s express jurisdiction to provide service throughout all unincorporated areas of the Co unty unless excepted from the CCWSD’s Special Act. As a sign of good faith, Rural Land’s representatives have unilaterally executed a proposed memorandum of understanding (MOU) (See Attachment 4) between the CCWSD and the BCSD demonstrating Rural Lands West’s intent to be served by the CCWSD. Based upon the Board’s direction on the requested expansion of the CCWSD’s boundaries, staff intends to bring the attached MOU back for the Board’s consideration later. The State Road 846 Land Trust is located within the current CCWSD service area. If these developments proceed to fruition, they would be served by the proposed Northeast Utility Facilities estimated to cost $188 million for 4 million gallons per day (MGD) of wastewater treatment and 5 MGD of water treatment. Attachment 2 shows the relative proximity of the State Road 846 Land Trust, Hogan Island Village, Winchester Lakes and Rural Lands West, enabling them to be served through water and wastewater transmission mains emanating from the Northeast Util ity Facilities. Funding for the Northeast Utility Facilities to provide adequate capacity to serve would require additional debt through the issuance of a CCWSD Bond. A water and sewer impact fee rate study is currently underway to identify the impact to rates going forward to fund construction and additional debt service and will be brought to the Board for consideration at a later meeting. The resulting effective CCWSD boundaries will encompass the entire area of Collier County, except for the following areas served by: Paragraph A: The area served by the City of Naples Paragraph B: The area served by the City of Marco Island Paragraph D: The boundaries of Everglades City, the Immokalee Water and Sewer District and those areas authorized to be served as of the date of the Resolution by the Collier County Water- Sewer Regulatory Authority The Ave Maria Utility Company LLLP All conservation lands FISCAL IMPACT: The fiscal impact associated with this action will be approximately $2,800.00 to advertise the Resolution. All planning and future development must meet the vision, mission and guiding principles approved by the Board on November 3, 2015. In addition, any development within the boundaries defined by the Special Act will continue to meet the Board-approved Utility Standards Ordinance. A strategic water supply plan and concurrent updates to the Water and Wastewater Impact Fee Rate Studies and Master 11.B Packet Pg. 225 07/10/2018 Plans will be initiated for growth-related infrastructure. Revenues from water and sewer impact fees collected upon connection to the CCWSD system as reservation of capacity would accrue in the respective Water and Sewer Impact Fee Funds (411 and 413 respectively), and Water, Sewer and IQ Water User Fees would continue to accrue in the Water-Sewer District Operating Fund (408). LEGAL CONSIDERATIONS: This item is approved as to form and legality, and requires majority vote for Board approval. -SRT GROWTH MANAGEMENT IMPACT: This item meets current Growth Management Plan standards to ensure the adequacy and availability of viable public facilities. RECOMMENDATION: That the Board, Ex-officio the Governing Board of the Collier County Water- Sewer District, direct the County Manager or his designee, to advertise the attached Resolution expanding the Collier County Water-Sewer District’s Service Area to coincide with the unincorporated area permitted by Chapter 2003-353, Laws of Florida, and to bring the Resolution to the Board for consideration after it has been lawfully advertised. Prepared By: Joe Bellone, Financial Operations Director, Public Utilities Department Tom Chmelik, Planning and Project Management Director, Public Utilities Department ATTACHMENT(S) 1. Attachment 1: Boundary Expansion Water-Sewer District Resolution (PDF) 2. Attachment 2: Map Showing Future Development (PDF) 3. Attachment 3: Letter to Jeff Klatzkow (PDF) 4. Attachment 4: Memorandum of Understanding (PDF) 5. Presentation (PDF) 11.B Packet Pg. 226 07/10/2018 COLLIER COUNTY Board of County Commissioners Item Number: 11.B Doc ID: 6127 Item Summary: *** This item was continued from the June 12, 2018 BCC meeting and the June 26, 2018 BCC meeting *** Recommendation to advertise a Resolution expanding the Collier County Water-Sewer District’s Service Area boundaries to coincide with the area permitted by Chapter 2003-353, Laws of Florida. (Dr. George Yilmaz, Public Utilities Department Head) Meeting Date: 07/10/2018 Prepared by: Title: Manager - Technical Systems Operations – Administrative Services Department Name: Michael Cox 06/28/2018 4:15 PM Submitted by: Title: Division Director - Public Utilities Eng – Public Utilities Planning and Project Management Name: Tom Chmelik 06/28/2018 4:15 PM Approved By: Review: Public Utilities Planning and Project Management Tom Chmelik Additional Reviewer Completed 06/29/2018 9:52 AM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 06/30/2018 12:24 PM Board of County Commissioners MaryJo Brock Meeting Pending 07/10/2018 9:00 AM 11.B Packet Pg. 227 11.B.1 Packet Pg. 228 Attachment: Attachment 1: Boundary Expansion Water-Sewer District Resolution (6127 : CCWSD Service Area Expansion) 11.B.1 Packet Pg. 229 Attachment: Attachment 1: Boundary Expansion Water-Sewer District Resolution (6127 : CCWSD Service Area Expansion) 11.B.1 Packet Pg. 230 Attachment: Attachment 1: Boundary Expansion Water-Sewer District Resolution (6127 : CCWSD Service Area Expansion) 11.B.1 Packet Pg. 231 Attachment: Attachment 1: Boundary Expansion Water-Sewer District Resolution (6127 : CCWSD Service Area Expansion) 11.B.1 Packet Pg. 232 Attachment: Attachment 1: Boundary Expansion Water-Sewer District Resolution (6127 : CCWSD Service Area Expansion) 11.B.1 Packet Pg. 233 Attachment: Attachment 1: Boundary Expansion Water-Sewer District Resolution (6127 : CCWSD Service Area Expansion) ^_^_ ^_ I75 SR 29SR 82 Immokale e RD Oil Well RD S 1st STLake Trafford RDCORKSCREW RDN 15th STWilson BLVD NW e s t c l o x S T E Main ST Jurisdi ctional B oundary Stewardship District (Interlocal agreement i n progress) Excluded from CCWSD per Spe cial A ct Fr anch ise Certificate d A rea and S tewardship Di strict Active Development Pla nne d Deve lopment RLSA 2025 RLSA 2050 Existing CCWSD Bou ndary ^_Regio nal Northe ast Utility Facilitie s ^_Sub-Region al E ast Utility Tre atment Plants ^_Sub-Region al Northea st Utility Trea tm ent Plants FUTURE DEVELOPMENTIN NORTHEAST COLLIER COUNTY Winche ster Lake s Vale ncia G ol f and Co untr y Club Ora nge Blossom Ranch Rura l Lan ds We st Ave M aria Immo kalee Water & Sewe r Distr ict SR 84 6 Land Tr ust Hogan Isl and Vi llage °0 2 41Miles April 2018 Twin Eagl es North Twin E agl es South 11.B.2 Packet Pg. 234 Attachment: Attachment 2: Map Showing Future Development [Revision 2] (6127 : CCWSD Service Area Expansion) 11.B.3 Packet Pg. 235 Attachment: Attachment 3: Letter to Jeff Klatzkow (6127 : CCWSD Service Area Expansion) 11.B.3 Packet Pg. 236 Attachment: Attachment 3: Letter to Jeff Klatzkow (6127 : CCWSD Service Area Expansion) 11.B.3 Packet Pg. 237 Attachment: Attachment 3: Letter to Jeff Klatzkow (6127 : CCWSD Service Area Expansion) 11.B.3 Packet Pg. 238 Attachment: Attachment 3: Letter to Jeff Klatzkow (6127 : CCWSD Service Area Expansion) 11.B.3 Packet Pg. 239 Attachment: Attachment 3: Letter to Jeff Klatzkow (6127 : CCWSD Service Area Expansion) 11.B.3 Packet Pg. 240 Attachment: Attachment 3: Letter to Jeff Klatzkow (6127 : CCWSD Service Area Expansion) 11.B.3 Packet Pg. 241 Attachment: Attachment 3: Letter to Jeff Klatzkow (6127 : CCWSD Service Area Expansion) 11.B.3 Packet Pg. 242 Attachment: Attachment 3: Letter to Jeff Klatzkow (6127 : CCWSD Service Area Expansion) 11.B.4Packet Pg. 243Attachment: Attachment 4: Memorandum of Understanding (6127 : CCWSD Service Area Expansion) 11.B.4Packet Pg. 244Attachment: Attachment 4: Memorandum of Understanding (6127 : CCWSD Service Area Expansion) 11.B.4Packet Pg. 245Attachment: Attachment 4: Memorandum of Understanding (6127 : CCWSD Service Area Expansion) 11.B.4Packet Pg. 246Attachment: Attachment 4: Memorandum of Understanding (6127 : CCWSD Service Area Expansion) 11.B.4Packet Pg. 247Attachment: Attachment 4: Memorandum of Understanding (6127 : CCWSD Service Area Expansion) Resolution to Expand the Collier County Water-Sewer District . Public Utilities Department July 10, 2018 Collier County | Florida Public Utilities Department Engineering and Project Management Division 11.B.5 Packet Pg. 248 Attachment: Presentation [Revision 2] (6127 : CCWSD Service Area Expansion) Objective Expand the service area for the Collier County Water-Sewer District (CCWSD) to ensure that future developments are served by the CCWSD. Eliminate/reduce the proliferation of package treatment plants as identified in the Special Act. Ensure that utility facilities are constructed to CCWSD standards. 2Public Utilities Department Engineering and Project Management Division 11.B.5 Packet Pg. 249 Attachment: Presentation [Revision 2] (6127 : CCWSD Service Area Expansion) Considerations Northeast growth indicates opportunities for utility expansion. Development within service area boundaries is required to seek utility services from the CCWSD. If the CCWSD cannot provide services, development may seek utility services from other sources. Integrating the Orange Tree Utility Company and acquiring the Golden Gate City Utility have shown the process to be cumbersome and expensive. The CCWSD will continue its policy of not extending services to estate-zoned properties. 3Public Utilities Department Engineering and Project Management Division 11.B.5 Packet Pg. 250 Attachment: Presentation [Revision 2] (6127 : CCWSD Service Area Expansion) Proposed Boundaries 4WastewaterWater 11.B.5 Packet Pg. 251 Attachment: Presentation [Revision 2] (6127 : CCWSD Service Area Expansion) NE Developments 5 11.B.5 Packet Pg. 252 Attachment: Presentation [Revision 2] (6127 : CCWSD Service Area Expansion) Future Utility Facilities 6 Northeast Utility Facilities 11.B.5 Packet Pg. 253 Attachment: Presentation [Revision 2] (6127 : CCWSD Service Area Expansion) Conceptual Pipe Alignments 7 Pipe Alignments to -SR 846 Land Trust -Hogan Island Village -Rural Lands West -Winchester Lakes 11.B.5 Packet Pg. 254 Attachment: Presentation [Revision 2] (6127 : CCWSD Service Area Expansion) Conceptual Pipe Looping 8 Pipe Loops -Water -Wastewater 11.B.5 Packet Pg. 255 Attachment: Presentation [Revision 2] (6127 : CCWSD Service Area Expansion) Potential NE Developments Winchester Lakes has stated an interest in being served by the CCWSD. The Ave Maria Utility Company requested expansion of its service area in order to serve Hogan Island Village. Subsequently, the County Manager filed an objection to this request. Rural Lands West is contained within the Big Cypress Stewardship District (BCSD), and therefore has the right to provide its own water and wastewater services in addition to the CCWSD’s jurisdiction. A signed memorandum of understanding between the CCWSD and the BCSD could allow the CCWSD to serve Rural Lands West. The State Road 846 Land Trust is located within the current CCWSD service area. 9Public Utilities Department Engineering and Project Management Division 11.B.5 Packet Pg. 256 Attachment: Presentation [Revision 2] (6127 : CCWSD Service Area Expansion) Recommendation That the Board, Ex-officio the Governing Board of the Collier County Water-Sewer District, direct the County Manager or his designee, to advertise the attached Resolution expanding the Collier County Water-Sewer District’s Service Area to coincide with the unincorporated area permitted by Chapter 2003-353, Laws of Florida, and to bring the Resolution to the Board for consideration after it has been lawfully advertised. 10Public Utilities Department Engineering and Project Management Division 11.B.5 Packet Pg. 257 Attachment: Presentation [Revision 2] (6127 : CCWSD Service Area Expansion)