Productivity Committee Agenda 01/29/2019January 29, 2019 5:00PM
Productivity Committee Meeting
3299 Tamiami Trl E
Naples FL, 34112
Fifth Floor Training Room
1. Call to Order
2. Pledge of Allegiance
3. Roll Call
4. Adoption of the Agenda
5. Public Comment
6. Adoption of Minutes from Previous Meeting
6.1. January 10, 2018
7. Staff Reports
8. New Business
9. Old Business
9.1. Stormwater Utility Discussion
10. Announcements (no action)
11. Committee Member Discussion
12. Next Meeting Time, Date and Location
12.1. Thursday, February 7, 2019 @ 10AM
13. Adjournment
32.B.2
Packet Pg. 584 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity Committee - January 29, 2019)
Geoff,
1. According to the former Florida Legislative Committee on Intergovernmental Relations (LCIR) and the Florida
Attorney General, local governments may exercise their home rule authority by entering into an agreement with
an electric utility to impose a fee upon the utility for the privilege of using the local government right-of-way to
conduct utility business
a. These fees are passed on to the customers of that utility
2. Franchise agreements with electric power utilities are;
a. Deemed to be an agreement between the electric utility provider and the local government, so that the
local government may collect a fair rent for the use of their right-of-way
b. Done in consideration for the local government’s agreement not to provide competing utility services
during the franchise term
3. Franchise fees are charged to customers who reside in the City of Naples, Everglades City, City of Bonita Springs,
City of Sanibel, City of Cape Coral and Unincorporated Lee County
4. The rate of the franchise fee is negotiated with the electric utility providers and the imposition of a franchise fee
requires the adoption of a franchise fee ordinance
5. The amount collected for the franchise fees would be the total negotiated percentage of the electric utilities gross
sales for Unincorporated Collier County
6. Fees are collected by the service provider and then transferred to the County
7. According to the LCIR, local governments use a portion of this fee revenue to offset the cost of their regulatory
functions associated with that fee (i.e. Franchise administration, customer service liaison, contract compliance,
etc.), with the remaining balance deposited into that government’s general fund
a. Use of the remaining revenues for general fund purposes are considered to be unrestricted, unless
otherwise noted within the ordinance, and consistent with the concept that the franchise fee is a
consideration for renting local government right-of-way and for that local government agreeing not to
compete with the utility
8. Florida Power and Light (FPL) has made a decision not to enter into any franchise agreement that charges a fee
greater than 5.9%
a. Municipalities have certain statutory right to charge an additional utility tax beyond the negotiated
franchise fee with the electric service provider. (Municipal public service tax.--, F.S. § 166.231 et seq.)
i. Chapter 34-111 of the Code of Ordinances, City of Naples, Florida, provides for a levy equal to
seven percent (7%) of payments received by the seller on each and every purchase of electricity
in the city. The tax is paid to the seller by the purchaser of the utility service for the use of the city,
due at the time of paying the charge for the utility service
ii. In FY08 the City of Naples total fee collected for this service is 12.9% (5.9% - FPL + 7% - City
adopted)
1. Re-verification would be required for current rates
32.B.2
Packet Pg. 585 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity Committee - January 29, 2019)
9. LCEC is not opposed to entering in to an agreement with Collier County Government
a. LCEC entered into an agreement with the City of Marco Island but the City rescinded it a few years later
i. The City of Marco Island was collecting a 5% franchise fee at the time of their agreement
10. In 2003, FPL reported FY02 annual revenues of $196 million for the unincorporated County and Lee County Electric
Co-op (LCEC) reported $16 million respectively.
a. Updated total revenue collections would need to be acquired along with the typical individual household
and business impact
b. Using the FY02 calculations, please note the following:
i. $196m (FPL) + $16m (LCEC) = $212m1
1. $212m x .01 (1% franchise fee) = $2.12m1
2. $212m x .03 (3% franchise fee) = $6.36m1
3. $212m x .059 (5.9% franchise fee) = $12.51m1
c. FPL has indicated that Unincorporated Collier County is one of the few remaining counties and their
largest service area in the State of Florida that has not collected an electric franchise fee.
11. FPL stated that the current land fill operation to generate power from electric generators that are fueled by gases
produced at the County Landfill would not impinge on any agreement between the County and FPL to collect
franchise fees, as this power is being deposited into the grid and sold to FPL at an avoided cost or wholesale rate
a. FPL indicated that they would not enter into a franchise agreement with the County, if it were the County’s
intention to use FPL as a transporter to move the electric power generated by the landfill electric
generators offsite, by way of the FPL infrastructure, to power other County buildings in an attempt to
reduce County electric use costs.
12. There are no known legislative actions that staff is aware of that would influence the implementation of an electric
franchise fee agreement between LCEC or FPL and Collier County
1 Approximate values that do not reflect the most current revenues that could be expected
Additionally, the links below from LCEC and FPL provide information to their customers regarding franchise fees
https://www.lcec.net/pdf/FF-website.pdf
https://www.fpl.com/rates/pdf/business-explanation.pdf
Respectfully,
Jamie
32.B.2
Packet Pg. 586 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity Committee - January 29, 2019)
$1.423
$3.532
$5.289
$7.046
$10.561
$0
$2
$4
$6
$8
$10
$12
$20m Bond $50m Bond $75m Bond $100m Bond $150m BondAnnual* Debt Service (in millions)New Financing Scenarios
*Annual Debt Service payments -amortized over 20 years at approx. 3.5%
32.B.2
Packet Pg. 587 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity Committee - January
Stormwater Utility Update
January 10, 2019
32.B.2
Packet Pg. 588 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Guiding Principals
Proactive Maintenance
•Proactive pipe replacement project was executed on a portion
of the Mockingbird Lake stormwater outfall
Cost: $163/ft. of HDPE pipe replacement
•One month prior, an adjacent section of the same pipe failed
under Ridge Drive. Road was closed, Mockingbird Lake
overflowed causing significant street and yard flooding.
Cost: $1920/ft. of pipe replacement + $40k for emergency
pumping
•Reactive maintenance costs were over 10 times cost of
proactive maintenance
Stormwater Utility: Planning For Success
2
32.B.2
Packet Pg. 589 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Current System Maintenance
Typical Industry
Standard
7.5 Years
5 Years
5 Years
12.5 Years
Maintenance
Activity
Storm Sewer Vacuuming
Curb Inlet
Cleaning
Catch Basin Cleaning
Roadside Swale Cleaning
Current Pace to
Address Entire
County
27 Years
25 Years
37 Years
57 Years
Operation & Maintenance
Industry Standard: $8.4M
3
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Packet Pg. 590 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Stormwater Maintenance Comparison
687
193
375388
69
272
5
263
18 19
372
ROADSIDE SWALES (MILES)MAJOR STORMWATER OUTFALLS MS4 PIPES (MILES)
Collier County Sarasota County Pinellas County Pasco County
32.B.2
Packet Pg. 591 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Personnel Comparison
23
80
94
112
STORMWATER PERSONNEL
Collier County Sarasota County Pinellas County Pasco County
32.B.2
Packet Pg. 592 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Future Stormwater Maintenance Projects
County-wide Vacuuming Program
County-wide Street Sweeping Program
County-wide Swale Maintenance Program:
Including potential outsourcing to increase capacity
Re-Establishment of the Desoto Ditch
Re-Establishment of Logan/Vineyards Ditch
Waterway Inspection/Maintenance program
Establish of a Silt/Dredging Removal Program
The County currently has over $160M in backlogged stormwater projects.
Over $2M spent last year on Golden Gate Estates for O&M prior to Hurricane Irma.
6
32.B.2
Packet Pg. 593 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Future Stormwater Capital Projects
Lely Neighborhood Stormwater Improvements
Naples Manor Neighborhood Improvements
Gordon River Stormwater Improvements
Golden Gate City Stormwater Improvement Project
Livingston Woods Neighborhood Improvements
Logan Woods Neighborhood Improvements
Palm River Neighborhood Improvements
Bonita Shores Water Control Structure
Big Cypress County Club Neighborhood Improvements
Naples Manor North Canal plus Reach to St. Andrews Blvd.
Haldeman Creek Culverts Replacement
Pine Ridge Road Culvert Extension West of YMCA
Pine Ridge Road Culvert at Harvey Canal
Rock Creek Stormwater Improvements
Rock Road/Cypress Canal Area Master Plan
The County currently has over $160M in backlogged stormwater projects.
Over $2M spent last year on Golden Gate Estates for O&M prior to Hurricane Irma.
7
32.B.2
Packet Pg. 594 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Future Golden Gates Estate Area Stormwater Capital Projects
North Belle Meade Diversion
Golden Gate Watershed Improvement Plan
Desoto Blvd Swale Construction
Bolt Canal Improvements (Orange Tree
Area)
Orange Tree Canal Control Structure
Cypress Canal Improvements
Pine Ridge Road Culvert Improvements
Logan Blvd Stormwater Management
Improvements
I-75 Cocohatchee Canal Interconnect
I-75 Canal Improvements
Miller Canal Improvements
Golden Gate Main –Regional Storage
CR 92 & 951 Culverting
Fiddler’s Creek Spreader System
Sabal Palm Road Culverts
South Belle Meade Flowway Restoration
South I-75 Canal Spreader Swale
Stormwater Treatment Area –Tamiami Canal &
Manatee
Tomato Road Diversion & Spreader Channel
US-41 Culvert Emplacement west of Tamiami Trail
Culverts Project
US-41 Outfall Swale No.2
US-41 Outfall Swale No. 3
The County currently has over $160M in backlogged stormwater projects.
Over $2M spent last year on Golden Gate Estates for O&M prior to Hurricane Irma.
8
32.B.2
Packet Pg. 595 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
FY 19 Proposed Stormwater Capital Projects
Stormwater Feasibility and Preliminary Design $ 300,000 $ 300,000
NPDES MS4 Program $ 100,000 $ 75,000
Stormwater Maintenance $ 150,000 $ 100,000
GG City Outfall Replacements $4,200,000 $ 0
Gateway Triangle Improvements $ 20,000 $ 20,000
Pine Ridge (FKA Mockingbird Lake)$ 300,000 $ 0
Pine Ridge Canal Weir Replacement $ 900,000 $ 900,000
Immokalee Stormwater Improvements $ 250,000 $ 15
Naples Park Stormwater Improvements $2,600,000 $3,200,000*
W. Goodlette-Frank (FKA Ridge Street) $ 300,000 $ 438,000**
Harbor Lane Brookside $ 200,000 $ 0
North Golden Gate Estates Flowway $ 100,000 $ 0
Upper Gordon River $1,000,000 $ 135,000
Griffin Road Area Outfall $ 400,000 $ 0
Weir Automation $ 700,000 $ 50
I-75 Coco Interconnect $ 500,000 $ 500,000
Total $12,020,000 $ 5,733,000
Proposed Budget Actual Budget
* An additional $600,000 required for debt owed to Public Utilities
** $300,000 owed to the City of Naples, per agreement, and $138,000 Engineering/Design costs
9
32.B.2
Packet Pg. 596 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Potential Options
September 6, 2018 BCC Presentation
Limited “Flat Fee for residential and capped for commercial”
Ad Valorem
10
32.B.2
Packet Pg. 597 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
September 6, 2018 BCC Presentation
Adjustments to tiers which would limit the maximum single-family assessments to $192
Providing credits for large lots
Automatic credit program for commercial/non-residential parcels
Providing further opportunities for offsets for churches
Removing unpaved surfaces calculations
11
32.B.2
Packet Pg. 598 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
September 6, 2018 BCC Presentation
Large Single Family Home
6,504 Sq. Ft. /Guest House/Pool
Taxable Value of $1,379,570
$16 /Month
12
Average Single Family Home
2,816 Sq. Ft.
Taxable Value of $364,570
$10 /Month
Smaller Single Family Home
1,516 Sq. Ft.
Taxable Value of $192,314
$6 /Month
32.B.2
Packet Pg. 599 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
September 6, 2018 BCC Presentation
Fee for condo units in order to generate revenue for Operation &
Maintenance
Number of Units Annual Monthly/Unit
65,366 $24-$45 $2.00 -$3.75
13
32.B.2
Packet Pg. 600 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
September 6, 2018 BCC Presentation
Commercial Parcels
Individually Calculated
Automatic credit program
for commercial/non-
residential parcels
Removing unpaved
surfaces calculations
14
32.B.2
Packet Pg. 601 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Limited Fee
Single fee for condo units
Single fee for residential parcels
Commercial parcels:
ERU based, with Maximum Cap number of ERUs
Revenues generated could be applied to Operations & Maintenance
Capital Projects would require funding from Property Taxes
Bondable Instrument
Continues to rely on impervious area calculations
Legally defensible
Assumes current Ad Valorem participation unchanged
15
32.B.2
Packet Pg. 602 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Residential Limited Fee
Single fee for Residential Parcels in order to generate revenue for
Operation & Maintenance
Number of Parcels Annual Monthly/Parcel
83,265 $60 -$75 $5.00 -$6.25
16
32.B.2
Packet Pg. 603 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Residential Limited Fee
Large Single Family Home
6,504 Sq. Ft. /Guest House/Pool
Taxable Value of $1,379,570
$5 /Month
17
Average Single Family Home
2,816 Sq. Ft. /Guest House/Pool
Taxable Value of $364,570
$5 /Month
Smaller Single Family Home
1,516 Sq. Ft.
Taxable Value of $192,314
$5 /Month
32.B.2
Packet Pg. 604 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Condo Units Limited Fee
Single fee for condo units in order to generate revenue for
Operation & Maintenance
Number of Units Annual Monthly/Unit
65,366 $39-$51 $3.25 -$4.25
18
32.B.2
Packet Pg. 605 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Condo Limited Fee
Large Condo
3,000 Sq. Ft.
Taxable Value of $579,570
$3.25 -$4.25/Month
19
Mid Size Condo
2,000 Sq. Ft.
Taxable Value of $364,570
$3.25 -$4.25/Month
Smaller Condo
1,000 Sq. Ft.
Taxable Value of $192,314
$3.25 -$4.25/Month
32.B.2
Packet Pg. 606 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Commercial Limited Fee (Stantec)
Commercial fee in order to generate revenue for Operation &
Maintenance
Based on individual impervious area with maximum of 10 ERUs
Tier System
Type Number of
Parcels
Annual Monthly/Parcel
Commercial 5,595 $60 -$1,200 $5 -$100
20
32.B.2
Packet Pg. 607 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Property Taxes
Increasing the current millage to meet the needs of stormwater
Dedicating up to .25 mils +/-$20M
21
32.B.2
Packet Pg. 608 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Property Taxes
Large Single Family Home
6,504 Sq. Ft. /Guest House/Pool
Taxable Value of $1,379,570
$28.74 /Month
22
Average Single Family Home
2,816 Sq. Ft. /Guest House/Pool
Taxable Value of $364,570
$7.60/Month
Smaller Single Family Home
1,516 Sq. Ft.
Taxable Value of $192,314
$4.01 /Month
32.B.2
Packet Pg. 609 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Condo Property Tax
Large Condo
3,000 Sq. Ft.
Taxable Value of $579,570
$12.07 /Month
23
Mid Size Condo
2,000 Sq. Ft.
Taxable Value of $364,500
$7.59 /Month
Smaller Single Family Home
1,000 Sq. Ft.
Taxable Value of $192,314
$4.01 /Month
32.B.2
Packet Pg. 610 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Property Taxes:
Commercial24
Commercial Parcels
Based on Taxable Value
Large Store Example: $151.52/Month
Mid-size Store Example: $47.92/Month
32.B.2
Packet Pg. 611 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Franchise Fee
25
1% of an electric bill
Average Collier County Residential Property (150,000):
$123/month = $1.23 increase in bill
Generates: +/-$2.5M
Average Collier County Commercial Property (10,000):
$639/month = $6.39 increase in bill
Generates: +/-$750K
32.B.2
Packet Pg. 612 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity
Costs # Parcels Rate Monthly Impervious
$12 774 12$ 1$ 400 - 1999
$60 - $99 442 60$ 5$ 2000 - 4300
$100 - $199 473 60$ 5$ 4301 - 6400
$200 - $299 387 300$ 25$ 6401 - 9700
$300 - $399 324 300$ 25$ 9701 - 12,900
$400 - $499 336 300$ 25$ 12,901 - 21,600
$500 - $599 267 300$ 25$ 21,601 - 25,900
$600 - $699 247 600$ 50$ 25,901 - 30,400
$700 - $799 214 600$ 50$ 30,400 - 34,600
$800 - $899 175 600$ 50$ 34,601 - 38,900
$900 - $999 162 600$ 50$ 38,901 - 43,100
$1000 - $1099 152 600$ 50$ 43,101 - 48,000
$1100 - $1199 108 600$ 50$ 48,001 - 51,200
$1200 Plus 1,220 1,200$ 100$ 51,201 +
Total 5,281
Preliminary Estimate for Commercial Properties Only (discussion aid only)
32.B.2
Packet Pg. 613 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity Committee - January 29, 2019)
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Packet Pg. 614 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity Committee - January 29, 2019)
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Packet Pg. 615 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity Committee - January 29, 2019)
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Packet Pg. 616 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity Committee - January 29, 2019)
32.B.2
Packet Pg. 617 Attachment: Agenda and Backup Documents - January 29, 2019 (7909 : Productivity Committee - January