Agenda 12/16/2008 Item #16A 2
Agenda Item No. 16A2
December 16, 2008
Page 1 of 5
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners (Board) adopt a
resolution to adjust the regulatory assessment fee from two percent to three percent
of gross revenues for nonexempt privately owned water and wastewater utilities
subject to local regulation, as well as all other water and wastewater utilities bound
by Interlocal Agreement, effective March 1, 2009, as approved by the Board in the
fiscal year 2009 budget and as approved by the Collier County Water and
Wastewater Authority.
OBJECTIVE: To adjust the existing regulatory assessment fee of private water and
wastewater utilities under local regulation from 2% to 3%, effective March 1,2009.
CONSIDERATIONS: Utilities regulated by Collier County include Ave Maria Utility
Company, Goodland Isles, Inc., North Marco Utility, Orange Tree Utility, and the Florida
Governmental Utility Authority, pursuant to an Interlocal Agreement.
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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 4V2% of each utility's gross
revenues - the same rate charged by the Florida Public Service Commission for the
period 1986 through 1995,
On October I, 1997, the Board decreased the fee from 4WYO to 3%, on October I, 1998
the Board decreased the fee from 3% to I \1,%, and on October I, 2003 the Board
increased the fee from I V2% to 2%. Since the Board assumed the regulatory oversight of
these utilities in 1996, reductions from the original fee charged by the Florida Public
Service Commission (PSC) have resulted in a savings of $4.8 million to consumers over
the last ten years (FY98 through FY08) 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 a static reserve to fund
specialized legal, engineering, and rate consultants. Despite reductions in the regulatory
operating budget and the elimination of one full-time staff position in FY06, costs have
steadily outpaced revenues, resulting in a reduction of reserves.
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FY09 Budget - On September 22, 2008, the FY09 regulatory budget (Fund 669) and
recommendation to increase the regulatory fee was presented to the Collier County Water
and Wastewater Authority (Authority). As presented to the Authority, the typical
residential utility customer served by the regulated utilities with a monthly water/sewer
bill of $70 will realize an increase of approximately 70 cents per month, or $8.40
annually. Even with this modest increase, this new regulatory fee is still well under the
PSC's 4WYO. The Authority unanimously recommended Board approval of the increase
in the regulatory fee.
Agenda Item No. 16A2
December 16, 2008
Page 2 of 5
During the Board's June 19, 2008 Budget Workshop for FY09, staffs recommendation
to increase the fee was outlined for consideration and approved at the Board's September
18, 2008 Budget Workshop, An increase in the fee requires a public hearing before the
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 County's General Fund. The
adjustment of the regulatory assessment fee from 2% to 3% is expected to increase
annual revenues to the Utility Trust Fund (669) by approximately $66,000.
GROWTH MANAGEMENT IMPACT: This action has no impact on growth
management.
LEGAL CONSIDERATIONS: This item is not quasi-judicial and requires a majority
vote. This Executive Summary has been reviewed for legal sufficiency and is legally
sufficient for Board action. - STW
RECOMMENDATION: That the Board adopt the accompanying resolution to increase
the Regulatory Assessment Fee from 2% to 3%, effective March I, 2009, thereby
authorizing the Collier County Water and Wastewater Authority to adjust water and/or
wastewater rates of regulated utilities, as appropriate.
PREPARED BY: James C. French, Operations Manager, Community Development and
Environmental Services and Executive Director, Collier County Water and Wastewater
Authority.
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Agenda Item No. 16A2
December 16, 2008
Page 3 of p
I
RESOLUTION NO. 2008-_
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 3.00 PERCENT OF GROSS REVENUES
FOR NONEXEMPT PRIVATE WATER AND WASTEWATER UTILITIES
SUBJECT TO THE REGULATORY ASSESSMENT FEE PURSUANT TO
ORDINANCE 96-6, AS AMENDED, AS WELL AS ALL OTHER WATER AND
W ASTEW A TER UTILITIES BOUND BY INTERLOCAL AGREEMENT FOR
REGULATORY OVERSIGHT; DIRECTING THE COLLIER COUNTY WATER
AND WASTEWATER AUTHORITY TO ADJUST WATER AND/OR
W ASTEW ATER 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 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 (AUTHORITY) and specific powers and duties; and
WHEREAS, Section 1-12 (E), Ordinance No. 96-6, as amended, provides for the
Board of County Commissioners (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 June 19, 2008, during the FY09 Budget Workshop, staff
recommended an adjustment of the regulatory assessment fee from 2.00 percent to 3,00
percent; and
WHEREAS, 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 private water and wastewater utilities under its jurisdiction to reflect
each change in regulatory assessment fees authorized by the BOARD.
NOW, THEREFORE, BE IT RESOLVED by the Board of County
Commissioners of Collier County, Florida that:
1. The regulatory assessment fee is hereby established at 3.00 percent,
effective March 1, 2008, of gross revenues for all water and wastewater
Agenda Item No. 16A2
December 16, 2008
Page 4 of,5
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 increase in the regulatory assessment fee,
This Resolution adopted this day of
and majority vote favoring adoption.
. 2008 after motion, second,
ATTEST:
DWIGHT E. BROCK, Clerk
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
BY:
By:
TOM HENNING, CHAIRMAN
Deputy Clerk
Approved as to fonn and legal sufficiency:
By:
Steven Williams, s"n...J
Assistant County Attorney
Item Number:
Item Summary:
Meeting Date:
Page 1 of 1
Agenda Item No. 16A2
December 16, 2008
Page 5 of 5
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
16A2
Recommendation that the Board of County Commissioners (Board) Adopt a resolution to
adjust the regulatory assessment fee from two percent to three percent of gross revenues for
nonexempt privately owned water and wastewater utUities subject to local regulation, as well
as all other water and wastewater utllities bound by Interlocal agreement effective March 1,
2009, as approved by the Board of County Commissioners In the fiscal year 2009 budget and
as approved by the Collier County Water and Wastewater Authority
12/16/2008 90000 AM
Prepared By
James French
Community Development &
Environmental Services
Operations Supervisor
Date
Approved By
CDES Operations
11/21/20082:49:33 PM
Judy Puig
Community Development &
Environmental Services
Operations Analyst
Community Development &
Environmental Services Admin.
Date
11/21/20084:40 PM
Approved By
Steven Williams
Attorney's Office
Assistant County Attorney
Attorney's Office
Date
Approved By
11/21/20084:47 PM
Joseph K. Schmitt
Community Development &
Environmental Services
Community Development &
Environmental Services Adminstrator
Date
Community Development &
Environmental Services Admin.
11/30/20085:04 PM
Approved By
OMS Coordinator
Administrative Services
Applications Analyst
Information Technology
Date
12/1/200811:34AM
Approved By
Randy Greenwald
County Manager's Office
Management/Budget Analyst
Office of Management & Budget
Date
12/2/200811:03 AM
Approved By
Mark Isackson
County Manager's Office
Budget Analyst
Office of Management & Budget
Date
12/3/20088:40 AM
Approved By
James V. Mudd
Board of County
Commissioners
County Manager
Date
County Manager's Office
12/7/20089:37 PM
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