Agenda 03/12/2019 Item #11C03/12/2019
EXECUTIVE SUMMARY
Recommendation to provide a report to the Board of County Commissioners, acting as the ex-
officio the Governing Board of the Collier County Water-Sewer District, as directed at the
February 12, 2019 meeting regarding Fire Assembly base charges as discussed during public
comment.
OBJECTIVE: To provide a report to the Board of County Commissioners (Board) concerning the
history, justification, legal requirements and fiscal impact of the County’s fire assembly base charges per
the approved Collier County Water-Sewer District (CCWSD) rate structure effective October 1, 2018.
CONSIDERATIONS: The Board approved the CCWSD Rate Study and fee structure at their June 26,
2018 meeting per agenda item 11I and subsequently adopted Resolution 2018-129 at the July 10, 2018
meeting as agenda item 17F.
History
The fire assembly fee pre-dates the 1997 Uniform Billing, Operating and Regulatory Standards
Ordinance. Prior to the most recent rate study and billing resolution, the fire assembly base charge (a/k/a
availability fee or readiness to serve fee) was based on use of measured water that passed through the fire
assembly. A table is included on page 5 of the attached Staff Report.
Justification and Requirements
The Special Act: The Special Act (House Bill 0849, Chapter 2003-353), Section 6, mandates:
(1) Such rates, fees and charges shall be so adopted and revised so as to provide monies which, with
other funds available for such purposes, shall be sufficient at all time to pay the expenses of
operating and maintaining the system…
(2) Such rates, fees and charges shall be just and equitable and uniform for users of the same class…
There are currently 1,031 privately owned, metered fire assemblies connected to the CCWSD potable
water system and 225 fire assemblies that have no means of flow detection and therefore were not subject
to any charges under previous rate structures. The CCWSD attempted to require meters on all fire
assemblies. The Collier Building Industry Association (CBIA) fought vigorously against this because
metering devices reduce pressure and may not allow for required flows. The proposal was ultimately
eliminated.
This inequity is demonstrated in the comparison below.
Customer Name
Service
Connection
Size
FY18 Base
Charge Paid
FY19 Base
Charge Paid Increase/(Decrease)
First Baptist Church 10"$5,069.80 $4,059.00 ($1,010.80)
First Congregational Church 8"$0.00 $2,239.44 $2,239.44
Under the current rate structure, some fire assembly connections to the potable water mains will pay less,
while others that have not previously been subject to any fees will pay more.
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All connections to the CCWSD receive the same benefits of connection which have associated costs:
(1) Ensured fire flows at the appropriate flow rates per the fire code section 18.4 when needed which
requires the Plant and system high service pumps to operate 24/7.
(2) Potable water mains in good condition which are maintained and repaired by CCWSD staff daily.
(3) All private fire assemblies have a cross connection control device to protect the public water
supply. The CCWSD staff is required to report to the Florida Department of Environment
Protection a consolidated cross-connection control report annually for all cross-connection
control devices per Florida Administrative Code 62.555.360, thus saving property owners the
effort to do so.
Options for Consideration
(1) Maintain the status quo, do nothing, which results in some property owners paying something
more than they did under the old rate structure but others paying less under the current rate
structure.
(2) Eliminate the monthly fire assembly charge altogether and approve instead a small user rate
increase for all customers to make up for the revenue loss. Such a rate increase equates to
approximately $3.00 annually for the average residential customer.
(3) Place a “hold” on fire assembly rates for a short period (for the remainder of FY2019) to allow
time for property owners to adjust budgets, and permit the CCWSD to utilize budgeted
contingency reserves should revenues fall short of expenses in FY2019.
FISCAL IMPACT: The current rate structure included in Appendix A, Schedule 1, item 3 (Fire
Systems) per Resolution 2018-129 is projected to provide Fiscal 2019 revenue of approximately $370,000
in the User Fee Operating Fund (408). Elimination of these fees would reduce anticipated revenues
necessary to meet the operation and maintenance costs, debt service requirements and repair and
rehabilitation capital program this fiscal year. Any such rate increase as identified in Option 2 above
equates to approximately $3.00 annually for the average residential customer.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
item.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to
form and legality, and requires majority vote for Board action. -JAK
RECOMMENDATION: That the Board, Ex-officio the Governing Board of the Collier County Water-
Sewer District, accepts Staff’s Report.
Prepared By: Joseph Bellone, Financial Operations Support Division Director, Public Utilities
Department
ATTACHMENT(S)
1. Fire Assembly Staff's Report (PDF)
2. Appendix A Schedule 1 (3) (PDF)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 11.C
Doc ID: 8174
Item Summary: Recommendation to provide a report to the Board of County Commissioners,
acting as the ex-officio the Governing Board of the Collier County Water-Sewer District, as directed at
the February 12, 2019 meeting regarding Fire Assembly base charges as discussed during public
comment. (Joseph Bellone, Financial Operations Support Director, Public Utilities Department)
Meeting Date: 03/12/2019
Prepared by:
Title: – Solid and Hazardous Waste
Name: Sarah Hamilton
02/26/2019 4:56 PM
Submitted by:
Title: Division Director - Operations Support – Public Utilities Operations Support
Name: Joseph Bellone
02/26/2019 4:56 PM
Approved By:
Review:
Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 02/27/2019 8:08 AM
Public Utilities Department Sarah Hamilton Level 1 Division Reviewer Completed 02/27/2019 1:14 PM
Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 02/27/2019 1:22 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 02/27/2019 4:43 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 02/28/2019 10:09 AM
Budget and Management Office Ed Finn Additional Reviewer Completed 03/04/2019 9:18 AM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 03/05/2019 1:43 PM
Board of County Commissioners MaryJo Brock Meeting Pending 03/12/2019 9:00 AM
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Private Fire Assembly Staff’s ReportJoe Bellone Director Financial Operations Support DivisionPublic Utilities DepartmentMarch 12, 2019Agenda Item 11 _Collier County | Florida11.C.1Packet Pg. 212Attachment: Fire Assembly Staff's Report (8174 : Staff's Report on Fire Assembly Base Charges)
Rate Study GuidelinesUser Rates (Potable Water, Wastewater, IQ Water):Should be sufficient to recover the costs of providing life sustaining services 24/7/365Revenue = Operating, Debt Service and Capital Improvement Program Costs + Sufficient ReservesFire Protection Fees Should be just and equitable, align with the methodology utilized by the Florida Public Service Commission in the regulation of private utilities and be in accordance with Florida Administrative Code 25-30.465211.C.1Packet Pg. 213Attachment: Fire Assembly Staff's Report (8174 : Staff's Report on Fire Assembly Base Charges)
Special Act Chapter 2003-353Section 6 (1) states such rates, fees and charges shall be sufficient at all times to pay the expenses of operating and maintaining the system, including the interest and principal on revenue bondsSection 6 (2) states such rates, fees and charges shall be just and equitable and uniform for users of the same classSome fire assembly devices have a meter (or some type of use detector), some do notResult: property owners with connected fire services that have a use detector have been paying these fees historically, while some have paid nothing historically311.C.1Packet Pg. 214Attachment: Fire Assembly Staff's Report (8174 : Staff's Report on Fire Assembly Base Charges)
Other Regulatory RequirementsCollier County Fire Code, Section 18.3, requires connection to an approved water supply capable of supplying the required fire flows for fire protectionCollier County Fire Prevention and Protection Policy and Procedure Manual requires all commercial projects and new single family subdivisions located within 1,000 feet of an approved water supply system to be connectedF.A.C. 62-555.360 requires community water systems to provide a cross connection control program, including privately owned systems411.C.1Packet Pg. 215Attachment: Fire Assembly Staff's Report (8174 : Staff's Report on Fire Assembly Base Charges)
Fire Assembly Fee History• Prior to Resolution 2018-129, only fire assembly devices connected to the CCWS potable water system with a meter were subject to a base and consumption charge when water passed through the meter• Fire assembly devices without a consumption measuring device (meter) had no charges associated with the connection5Ord/Reso # Basis of Charge per Month 8" Base Charge per Month Use Charge/TGALOrdinance 1997-48 montly detected use $1,087.00 $1.45 Ordinance 2001-73 use 3 consecutive months 770.40 1.44Resolution 2003-94 use 3 consecutive months 789.70 1.48Resolution 2005-217 use 3 consecutive months 855.52 1.63Ordinance 2006-27 use 3 consecutive months 1.92Resolution 2008-203 use > 5 TGAL 1,065.56 2.28Resolution 210-158 use > 5 TGAL 1,132.64 2.42Resolution 2011-30 use > 5 TGAL 1,132.64 2.42Resolution 2014-174 use 6 TGAL or more 1,234.58 2.64Resolution 2017-168 use 6 TGAL or more 1,400.60 2.99Resolution 2018-129 1/12th base charge 186.6211.C.1Packet Pg. 216Attachment: Fire Assembly Staff's Report (8174 : Staff's Report on Fire Assembly Base Charges)
Impact of Rate Structure Change:Customer Comparison6Customer NameService Connection SizeFY18 Base Charge PaidFY19 Base Charge Paid Increase/(Decrease)First Baptist Church 10" $5,069.80 $4,059.00($1,010.80)First Congregational Church 8" $0.00 $2,239.44 $2,239.44Connected Fire Assembly Devices Prior to 2018-129 Effective with 2018-129Number connections subject to Base Charge 1,031 1,256Number of connections not subject to any charge 225 011.C.1Packet Pg. 217Attachment: Fire Assembly Staff's Report (8174 : Staff's Report on Fire Assembly Base Charges)
Operating and Maintenance1,090 miles of potable water mains and 24,185 system valves as of 12/31/18. Sustain over 50M gallon water production distribution and capacity, including fire protection flow demandsWater main break fixes completed by water distribution staff or emergency underground utility contractors (historically over $400,000 annually)High service pumps, at two regional plants and at 4 system pump stations, work 24/7 to pressurize the distribution system to provide sufficient pressure for fire flows (recall that the Randall Curve Publix could not pass fire inspections until CCWSD takeover)711.C.1Packet Pg. 218Attachment: Fire Assembly Staff's Report (8174 : Staff's Report on Fire Assembly Base Charges)
Operating and MaintenanceThe CCWSD operates and maintains ground water storage tanks at Carica (North), Manatee (South), Isles of Capri and Goodland to ensure sufficient capacity is available for fire fighting (recall fires on 951 corridor)Staff coordinates and prepares a consolidated cross connection control report for FDEP annually– Conducts tests for all County-owned devices– Privately owned fire assembly cross connection test reports are completed privately, but staff sends initial requests for annual report and collects test results for the consolidated FDEP report811.C.1Packet Pg. 219Attachment: Fire Assembly Staff's Report (8174 : Staff's Report on Fire Assembly Base Charges)
Fiscal ImpactCurrent rate structure forecasts fire assembly revenues of $370,000 annuallyElimination of this fee would require a user fee increase over currently approved user rates to maintain the projected revenue streamAs a reminder, Resolution 2018-129 increased user rates:– 2.8% effective October 1, 2018– 2.9% effective October 1, 2019– 2.9% effective October 1, 2020 911.C.1Packet Pg. 220Attachment: Fire Assembly Staff's Report (8174 : Staff's Report on Fire Assembly Base Charges)
Options for Fire Connection ChargesOption 1: Maintain the current fire assembly rate structure per the Special Act requirements of “just and equitable” feesOption 2: Eliminate the charge to all property ownersIncrease user rates to maintain the revenue stream Leave user rates as is, but reduce level of service to reduce operating costs with corresponding increased compliance riskOption 3: Suspend the fire assembly charge for remainder of FY19 to allow property owners to incorporate into Church and HOA budgets 1011.C.1Packet Pg. 221Attachment: Fire Assembly Staff's Report (8174 : Staff's Report on Fire Assembly Base Charges)
Questions1111.C.1Packet Pg. 222Attachment: Fire Assembly Staff's Report (8174 : Staff's Report on Fire Assembly Base Charges)
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