Agenda 06/24/2008 Item # 8C
Agenda Item No. 8e
June 24, 2008
Page 1 of 25
EXECUTIVE SUMMARY
Adopt a Resolution amending schedules one, and four through seven of Appendix A
to Section Four of the Collier County Ordinance No. 2006-27, the Collier County
Water-Sewer District Uniform Billing, Operating And Regulatory Standards
Ordinance. This amendment includes proposed rates for water and wastewater
services with effective dates of October 1, 2008 and October 1, 2009 for schedule one
of Appendix A of the Ordinance; and provides for an effective date of October 1,
2008 for schedules four through seven of Appendix A of the Ordinance.
OBJECTIVE: Adopt a resolution amending schedules one, and schedules four through
seven of Appendix A to section four of Collier County Ordinance No. 2006-27, the
Collier County Water-Sewer District Uniform Billing, Operating And Regulatory
Standards Ordinance. This amendment includes proposed rates for water and wastewater
services with effective dates of October I, 2008, (for FY09), and October I, 2009, (for
FYIO), for schedule one of Appendix A of the ordinance; and provides for an effective
date of October 1,2008, for schedules four through seven.
CONSIDERATIONS: Water, sewer, fire meter, and surcharge rates are used to recover
system operation, maintenance, renewal, enhancement, replacement, and debt service
costs from residential and non-residential property owner system users within the
boundaries of the Collier County Water-Sewer District.
On June 6, 2006, the Board of County Commissioners (Board) adopted Ordinance No.
2006-27 amending Ordinance No. 2001-73 and increasing the water and sewer user rates
in schedule one; meter tapping charges and backflow device charges in schedule four;
equipment, labor and administration charges in schedule five; miscellaneous charges in
schedule six; and revising Allowance for Funds Prudently Invested (AFPI) in schedule
seven.
Public Resource Management Group, the user rate study consultant, has recommended
user rate increases to fund improvements to reliability of water and sewer systems,
payment of debt service, and escalating costs of fuel, chemicals, and electricity over the
next five years. The methodology utilized to prepare the analysis is consistent with the
approach used in the previous years study.
The attached Rate Study Briefing Document (Water and Sewer Rate Consultants'
Executive Summary), is designed to establish water and sewer user rates. Rates for water
and sewer complement both the impact fees levied, and the 2008 Water and Wastewater
Master Plan Updates being presented to the Board for approval on June 24, 2008.
~.
Staff offered to the Productivity Committee at their April 16, 2008, meeting the
opportunity to review the rate study. The Productivity Committee declined, expressing
confidence in the consultant and staff preparing the study.
Agenda Item No. 8e
June 24, 2008
Page 2 of 25
A major change in the rate schedule this year is an automatic rate adjustment of 100% of
change in CPI or 2.7%, whichever is greater. This automatic rate adjustment will apply
only in the years between rate studies. It does not apply to the proposed rate adjustment
in this resolution because the rate study has already factored in the effect of the CPI.
Proposed changes to schedules one, four, five, six, and seven are attached with an
effective date of October 1,2008. No changes are proposed at this time to schedules two
(Goodland Water Sub-District) and three (Irrigation Quality Water).
FISCAL IMPACT: The additional rate revenue anticipated to be generated by the
recommended water and sewer fees over the next five (5) years is:
Water
Sewer
=
$14,842,000
$]8,187,000
$31,029,000
The impact to a single-family residential user of both water and sewer services with a Y.
inch water meter can be estimated from the following charts:
Individually Metered Residential Customer Impact under Proposed Water Rates
Usage (Gallons)
0 2,000 5,000 8,000 10,000 20,000 50,000
Existinl! Rates $16.03 $20.43 $27 .03 $36.93 $43.53 $87.53 $274.33
FY 2009 Rates $]6.59 $21.15 $27.99 $38.25 $45.09 $90.59 $283.89
Difference $ $0.56 $0.72 $0.96 $132 $1.56 $3.06 $9.56
Difference % 3.49% 3.52% 3.55% 3.57% 3.58% 3.50% 3.48%
FY 2010 Rates $17.17 $21.89 $28.97 $39.59 $46.67 $93.77 $293.87
Difference $ $0.58 $0.74 $0.98 $134 $1.58 $3.]8 $9.98
Difference % 3.50% 3.50% 3.50% 3.50% 3.50% 3.51% 3.52%
Individually Metered Residential Customer Impact under Proposed Wastewater Rates
Usage (Gallons)
0 2,000 5,000 8,000 ]0,000 20,000 50,000
Existing Rates $24.49 $3137 $41.69 $52.01 $58.89 $76.09 $76.09
FY 2009 Rates $25.35 $32.47 $43.]5 $53.83 $60.95 $78.75 $78.75
Difference $ $0.86 $1.10 $1.46 $1.82 $2.06 $2.66 $2.66
Difference % 3.5]% 3.51% 3.50% 3.50% 3.50% 3.50% 3.50%
FY 2010 Rates $26.23 $33.61 $44.68 $55.75 $63.13 $81.58 $81.58
Difference $ $0.88 $1.14 $1.53 $1.92 $2.18 $2.83 $2.83
Difference % 3.47% 3.51% 3.55% 3.57% 3.58% 3.59% 3.59%
Agenda Item No. 8e
June 24, 2008
Page 3 of 25
In addition, a cost of approximately $400 for the required advertisement will be paid.
LEGAL CONSIDERATIONS: The proposed Resolution has been approved for legal
sufficiency by the Office of the County Attorney. JAB
GROWTH MANAGEMENT IMPACT: The proposed water and sewer rates are
designed to provide funding for operation and maintenance, and repair and replacement
costs. These rates also provide supplemental funding for water and sewer capital
improvements identified in the 2008 Water and Wastewater Master Plan Updates
presented to the Board for approval on June 24, 2008.
RECOMMENDATION: Adopt a resolution amending schedules one, and four through
seven of Appendix A to Section Four of Collier County Ordinance No. 2006-27, the
Collier County Water-Sewer District Uniform Billing, Operating And Regulatory
Standards Ordinance, and authorize the Chairman to execute the same.
PREPARED BY: Bala M. Sridhar, Senior Management and Budget Analyst, Public
Utilities Division-Operations
Page I of I
Agenda Item No. 8e
June 24, 2008
Page 4 of 25
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
8e
Meeting Date:
This item to be heard at 4:30 p.m. Adopt a resolution amending Schedules One and Four
through Seven of Appendix A to Section Four of the Collier County Ordinance No. 2006-27,
titled The Collier County Water-Sewer DIstrict Uniform Billing, Operating and Regulatory
Standards Ordinance; This amendment included proposed rates for water and wastewater
services with effective dates of October 1, 2008 and October 1,2009 for Schedule 1 of
Appendix A of the Ordinance; and provides for an effective date of October 1, 2008 for
Schedules Four through Seven of Appendix A of the ordinance. (This item to be heard
following Items 108 and 8B)
6/24/2008 9:00:00 AM
Approved By
Joseph Bellone
Operations Supervisor
Date
Public Utilities
Public Utilities Operations
6/5/20083:59 PM
Approved By
Thomas Wides
Operations Director
Date
Public Utilities
Public Utilities Operations
6/9/2008 1 :13 PM
Approved By
Jennifer A. Belpedio
Assistant County Attorney
Date
County Attorney
County Attorney Office
6/12/200812:51 PM
Approved By
James W. Delony
Public Utilities Administrator
Date
Public Utilities
Public Utilities Administration
6/12/2008 1 :02 PM
Approved By
OMB Coordinator
OMB Coordinator
Date
County Manager's Office
Office of Management & Budget
6/12/20082:46 PM
Approved By
Randy Greenwald
ManagemenUBudget Analyst
Date
County Manager's Office
Office of Management & Budget
6/13/200810:29 AM
Approved By
James V. Mudd
County Manager
Date
Board of County
Commissioners
County Manager's Office
6/16/2008 12:48 PM
file:/ /C:\AgendaTest\Export\ll O-J une%2024. %202008\08. %20ADVER TISED%20PUBLI C... 6/18/2008
Agenda Item No. 8e
June 24, 2008
Page 5 of 25
RESOLUTION NO. 2008 -
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AMENDING SCHEDULES ONE AND
FOUR THROUGH SEVEN OF APPENDIX A TO SECTION FOUR OF
THE COLLIER COUNTY ORDINANCE NO. 2006-27, TITLED THE
COLLIER COUNTY WATER-SEWER DISTRICT UNIFORM BILLING,
OPERATING AND REGULATORY STANDARDS ORDINANCE; TillS
AMENDMENT INCLUDES PROPOSED RATES FOR WATER AND
WASTEWATER SERVICES WITH EFFECTIVE DATES OF OCTOBER
1, 2008 AND OCTOBER 1, 2009 FOR SCHEDULE 1 OF APPENDIX A OF
THE ORDINANCE; AND PROVIDES FOR AN EFFECTIVE DATE OF
OCTOBER 1, 2008 FOR SCHEDULES FOUR THROUGH SEVEN OF
APPENDIX A OF THE ORDINANCE.
WHEREAS, on December 11, 2001 the Board of County Commissioners adopted an
Ordinance No. 2001-73, entitled the Collier County Water-Scwer District Uniform Billing,
Operating and Regulatory Standards Ordinance, and increased the water-sewer user rates and
directed staff to update the user rates after one year; and
WHEREAS, on June 6, 2006 the Board of County Commissioners adopted an Ordinance
No. 2006-27, entitled the Collier County Water-Sewer District Uniform Billing, Operating and
Regulatory Standards Ordinance, and increased the water-sewer user rates and directed staff to
update the user rates after one year; and
WHEREAS, Collier County uses water and sewer user rates to recover system operation,
maintenance, renewal enhancement, replacement and debt service costs from residential and
non-residential property owner system users within the boundaries of the Collier County Water-
Sewer District; and
WHEREAS, Collier County has retained Public Rcsources Management Group, mc. (the
Consultant) to review the existing water and sewer user rates and to recommend appropriate
changes to those rates; the Consultant has recommended rate increases to fund improvements to
reliability of water and sewer systems, payment of debt service, and escalating cost of fuel,
chemicals and electricity over the next five (5) years; and
WHEREAS, the Consultant has recommended increasing the water and sewer user rates
applicable to single family residential, multi-family residential, and commercial customers as
specified in the attached amending Schedule One to Appendix A; and
WHEREAS, the Consultant has recommended price indexing rate adjustment in the mid-
cycle years when there is no rate study by applying one-hundred-percent (100%) of the
percentage change in the Miami-Fort Lauderdale Consumer Price Index (CPr) aU urban
consumers as reported by the Bureau of Labor Statistics as of April each year or 2.7% whichever
is greater, to the monthly service availability charges and consumption / volumetric charges; and
Agenda Item No. 8e
June 24, 2008
Page 6 of 25
WHEREAS, staff has thoroughly reviewed the Consultant's findings and
recommendations and concurs with the recommended increase for water and sewer user rates.
WHEREAS. the Board finds that it is in the health, safety and welfare to accept the
recommendations of the Consultant and from staff.
NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that:
The Board of County Commissioners, after advertised public hearing:
L Accepts the Consultant's and staff's recommendation and proclaims that the water
and sewer user rates as set forth in the amended Schedule One to Appendix A of Ordinance No.
2006-27, as amended, titled the Collier County Water-Sewer District Uniform Billing, Operating
and Regulatory Standards Ordinance, which amended Schedule is incorporated herein. These
revised water and sewer user rate schedules will take cffect at 12:01 AM. on Wednesday,
October 1, 2008 for Fiscal Year 2009, and at 12:01 AM. on Friday, October 1, 2009 for Fiscal
Year 2010; and revised rates for Schedules Four through Seven will be take effect at 12.01 AM
on Wednesday, October 1, 2008 for fiscal year 2009; and
2. Proclaims that the price indexing rate adjustment in the mid-cycle years when
there is no rate study by applying one-hoodred-percent (100%) of the percentage change in the
Miami-Fort Lauderdale Consumer Price Index (CPI) all urban consumers as reported by the
Bureau of Labor Statistics as of April each year or 2.7% whichever is greater, to the monthly
service availability charges and consumption I volumetric charges. This indexing rate
adjustment will go into effect on October I, of each mid-cycle year when there is no rate study.
This Resolution is adopted after motion; second and majority vote favoring adoption this
day , 2008.
ATTEST:
DWIGHT E. BROCK, CLERK
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA
By:
,Deputy Clerk
TOM HENNING, CHAIRMAN
Approval as to form and legal Sufficiency:
~u~~_.: _
Jenni er A Belpedi
Assistant County Attorney
Agenda Item No. 8e
June 24, 2008
Page 7 of 25
PVJlLIC UTILITIES DIVISION
COlUER COUNTY WA.Ti'R..sawi:R DISTRICT
lI"I~OH.M IIIILUNC, OPF:RATING, AND RlGULATOR'r' STANDARDS OlUHNAJIlCI!:
AP'PENDIX .... PEES, RAn;.s ANtl CHARGES
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Agenda Item No. 8e
June 24, 2008
Page 8 of 25
PUBLIC UTILITIES DIVISION
COLLIER COUNTY WATER-SEWER DISTRICT
UNIFORM BILLING, OPERATING. AND REGULATORY STA."IDARDS ORDINANCE
APPENDIX A - FEES, RATES AND CHARGES
SCHEDULE 1 - DISTRICT-WIDE WATER AND WASTEWATER RATES Page 2 oe2
3. Fire Systems (Dedicated and Compound):
(a) Fire MeIer
(i) Fire Sen'ice meter size will refer to the largest diameter meter register installed for nre protection.
(ii) Fire Ser\'ice meter connections that have consumption in excess of 5,000 gaUons in any ODe biUing
period arc deemed to ha,'e provided domestic or other water usage and shall be billed according to
regular water monthly availability and usage charges as described berein.
(b) Volume oberg.
(I) Per 1,000 g.nons
4. Water Restriction Surcharge:
Water Shl)rla~e 'Phase.
Phase 2 - Severe
Phase 3 - Extreme
Phase 4 ~ Critical
Percent Reduction Goal
In Overall Demand
30%
45%
60 Ok
Flow charge Rate
Adjustment PertentaRe
150/.
300/.
400/.
'*" Per the South Florida Water Management District (SF\\'MD) 'Vater Shortage Plan
Pursuanll. Cbap'er 40&-21 of lbe Florida Admlntslralive Cod. (FAC)
The sunharge will be applicable to the volume (harge for- all single familYl multi-family and Don-residential
accounts for all consumption greater than Block 2. The Block Structures ue specified in Section One above. The
surcharge is qot 3liiscssed against the service availability charge.
The water restriction surcharge will start 00 the f1.-st billing cycle of the month following the imposition of the
restrictions. The surcharge will cease on the first billing c)'c1e orthe month following the revocation or lifting of
the restrictions.
Agenda Item No. 8e
June 24, 2008
Page 9 of 25
PUBLIC UTILITIES DIVISION
COLLIER COUNTY W A lER-SEWER DISTRICT
UNIFORM BILLING, OPERATING AND REGULATORY STANDARDS ORDINANCE
APPENDIX A - FEES, RATES AND CHARGES
SCHEDULE 4 - MElER TAPPING CHARGES AND BACKFLOW DEVICE CHARGES Page I of I
Mete.- ("staU.lion Charl!'es fTal)l>ine Fees)
1. Meter Instanation Charges to be paid to the District shall be HI foHows:
Meter size meter tapping charges:
Meter Size
.75 inch
1 inch
1.5 inch
2 Inch
}\Ife-ler Tapping Charges 'With
Sen ice Line Installation Charge
Effective October 1, 2008
$779.00
$827.00
$940.00
$1,213.00
Meter Size
.75 inch
1 inch
1.5 inch
2. inch
Meter Tappinr: Charges Without
Service Line Installation CharR;e
Errcdi.. October 1, 2008
$257.00
$270.00
$347.00
$410.00
Badd10w Device Charpes
2. 88Cknow Device Charges to be paid to the District shall he as follows:
Meter Size
.75 iDcb
Ilncb
1.5 Inch
2 inch
Rc:duced Pressure BatkRow
Pn:"ention AssemblY Charge
E ff ective October 1, 2008
$247.00
$270.00
$375.00
5433.00
Agenda Item No. 8e
June 24, 2008
Page 10 of 25
PUBLIC UTILITIES DMSION
COLLIER COUNTY WATER-SEWER DISTRICT
UNIFORM BILLING, OPERATING AND REGULATORY STANDARDS ORDINANCE
APPENDIX A - FEES, RATES AND CHARGES
SCHEDULE 5 - EQUIPMENT, LABOR AND ADMINISTRATION CHARGES Page 1 of 1
DESCRIPTION
EFFECTIVE OCT. 1, 2008
111 Eaulpment (Per Hour Rates1:
Mud Hog
$75.00
$50.00
$200.00
$150.00
$100.00
$70.00
$40.00
$200.00
$50.00
$65.00
$60.00
$40.00
$10.00
$15.00
$45.00
$100.00
$15.00
$5.00
Rehab & electrician's Truck
Crew Truck
Vactor Truck
Camera Truck
Boom Truck
20 Yard Dump Truck
10 Yard Dump Truck
Pumper Truck
Track Hoe (Big or Small)
Back Hoe
Olympian Generators
Dewatering System
4" Trash Pump
Trailer
Signs, Barricades and/or Traffic Board
Road Saw and/or compactor
Miscellaneous Small Equipment
(21 Labor (Per Hour Ratesl:
Tech 1 &2
Supervisors
$30.00
$40.00
(3) Administration IPer Incident\
15% or $300; whichever is smaller
(4l Parts and Sub-contractors
Actual cost
Agenda Item No. 8e
June 24, 2008
Page 11 of 25
PUBLIC UTILITIES DIVISION
COLLIER COUNTY WATER-SEWER DISTRICT
UNIFORM BILLING, OPERATING AND REGULATORY STANDARDS ORDINANCE
APPENDIX A - FEES, RATES AND CHARGES
SCHEDULE 6 - MISCELLANEOUS CHARGES Page I oft
DESCRIPTION
EFFECTIVE OCT. I, 2008
New Accounts - change of Ownership
$28.00
Turn Off-Turn On at Owner's Request
550.00
Meter Re-Read (if different - charge is SO)
550.00
Meter Test:
Oosite Test 9more than 3% err-or. charge is SO)
S140.00
Offslte Bench Test (more tban 3% erro.... - charge is SO)
U50.00
Meter Lock
555.00
Meter Unlock, 2nd and Subsequent Ennts
555.00
Unlock after hours
SIOO.OO
Metu Removal
5180.00
Illegal (onnection
Actual time and material cost, plus
average consumption, plus a $300.00
fiDe
Convenience Fee - Credit Card
SS.OO
Temporary Meter Deposit
5] ,000.00
Dnplicate BiU Processing Fee
$2.00
Non-Sufficient Funds (NSF) Processing Charge
15% of the amount or S100,
whichever is smaller
Late Payment Charge
560.00
Removal of La.ndsupin ~ to Access Meter
580.00
Septage Processing Charge/I,OOO gallons
S35.00
Grease Trap Waste rh~lrge/l,OOO gallons
545.00
Agenda Item No. 8e
June 24, 2008
Page 12 of 25
Sthedule Seve" (Appepdl:r A)
ColliE!r County Waler~Sewer District
Water and Wastewater Impact fee Study
Pronosed Allow::mcc rOT Funds Prudentlv Inve.sted (AFPI) Fee Schedule
AFPI Fee Schedule Per ERe - Waler System
Payment CalendqrYear
Month 2008[11 2009 2010 2011 2012 1013 2014
Jon""'Y $234.7f'l $363.16 $5]8.80 $67444 181008 $933 84 $93384
Febtulll)' 249 44- l76.[3 53177 687.41 843.05 933.84 933.84
Marf;h 26411 389 It} 544.74 70038 85602 9l3.84 933.84
Apnl 27878 402 07 55771 71335 86899 933.84 933.84
Moy 29345 41504 57068 720.32 881.96 933-84 933.84
June 3081J 4:2!Wl SK3 tiS 739.29 89493 1]33.84 933.84
July 312 ~O 44098 59662 752.26 907'90 933.84 933.84
August 337..+] 45395 60959 765.23 92087 933.84 933.84
Sop""""'" 35:!l..j. 466n 622.56 77820 93384 93384 933.84
October 324 :!5 479,89 6J553 791.17 933.84 933 84 9l3-8'
November 337_:::::: 492.86 64850 80.1.14 93384 933.84 93384
December 3501') 505.83 66/47 81711 9ll.84 933 84 9l3.84
AFPI Fe€' Schedule Per ERe - Wastewater Svstem
P.yment Calendar Year
Month 200B rll 2009 2010 2011 20L2 :2013 2014
JMluaI)' .11152.94 'ii295J] $42160 i548 08 i07456 i758.88 575888
February 16250 30566 43.2.14 558.62 685.10 758.88 758 Kg
March ]72 Of) 3[u.20 442.68 569.16 69564 758.88 75B 88
April ]8162 32674 453.]] 57910 706.18 758.88 75fi 88
May ]9] 18 33728 46376 590.14 71672 758.B8 75888
June 2007-1 34782 47430 60078 T!7.26 758.RB 758.88
July 210 30 3SS 36 48484 61LJ2 73780 758_&8 758.88
August ]19 S~ :168.90 495.38 62186 748.34 758.g8 758.88
September 22941 J7944 50S 92 63:;140 758.88 75888 758.88
Oetober 26350 38998 51646 64294 758.88 758.88 758.8B
November- 2740.+ 400 51 527,00 653.48 75888 /58.88 758.88
December 284.58 4] 106 537 S4 664 02 75888 758.88 758.88
[1] AFPI fees for January 200~ thlough September :!O08 were estabhshed dunng the preVIOUS rate study perfonned by PR.MG in 2006. The
revised AFPI fee schedule l~ I'Wposed to become effectlve on October [, 20rn!,
ERe"" Equiv31ent Re!.ldentia] Conn('cllun
Agenda Item No. 8e
June 24, 2008
Page 13 of 25
PUBLIC UTILITIES DIVISION
COLLIER COUNTY WATER-SEWER DISTRICT
UNIFORM BILLING, OPERATING AND REGULATORY STANDARDS ORDINANCE
APPENDIX A - FEES, RATES AND CHARGES
SCHEDULE 4 - METER TAPPING CHARGES AND BACKFLOW DEVICE CHARGES Page 1 of 1
Meter Installation Charl!cs (Tappin!! Fees)
1. Meter Installation Charges to be paid to the District shall be as follows:
Meter size meter tapping: charges:
Meter Size
.75 inch
1 inch
1.5 inch
2 inch
8ackflow Device Chan!cs
Existing
Effedive October I, 2007
$676.00
$738.00
$1,012.00
$1,140.00
Meter Tapping Charges With
SCn'ice Line Installation CharJ:tc
Effective October 1, 2008
$779.00
$827.00
$940.00
$1,213.00
2. Backflow Device Charges to be paid to the District shall be as follows:
Meter Size
.75 inch
1 inch
1.5 inch
2 inch
Existing
Effective October 1, 2007
$214.00
$237.00
$345.00
$412.00
Reduced Pressure Backflow
Prevention Assembly Char~e
Effective October 1. 2008
$247.00
$270.00
$375.00
$433.00
Meter Size
.75 inch
1 inch
1.5 inch
2 inch
Existing
Effective October 1, 2007
$248.00
$282.00
$493.00
$618.00
Meter Tapping Charges Without
Service Line Installation Charge
Effective October 1. 2008
$257.00
$270.00
$347.00
$410.00
Agenda Item No. 8e
June 24, 2008
Page 14 of 25
PUBLIC UTILITIES DIVISION
COLLIER COUNTY WATER-SEWER DISTRICT
UNIFORM BILLING, OPERATING AND REGULATORY STANDARDS ORDINANCE
APPENDIX A - FEES, RATES AND CHARGES
SCHEDULE 6 - MISCELLANEOUS CHARGES Page 1 of 1
DESCRIPTION
Effective October 1, 2007
Effective October 1, 2008
New Accounts - change of Ownership
$25.00
$28.00
Turn Off-Turn On at Owner's Request
$38.00
$50.00
Meter Re-Read (if different - charge is $0)
$38.00
$50.00
Meter Test:
Onsite Test (more than 30/0 error - charge is $0)
$80.00
$140.00
Offsite Bench Test (more than 3% error - charge is $0)
$215.00
$250.00
Meter Lock
$55.00
$55.00
Meter Unlock, 2nd and Subsequent Events
$55.00
$55.00
Unlock after hours
$100.00
$100.00
Meter Removal
$180.00
$180.00
Illegal connection
Actual time and material cost, plus
average consumption, plus a
$300.00 fine
Actual time and material cost,
plus average consumption, plus a
$300.00 fine
Convenience Fee - Credit Card
$5.00
$5.00
Temporary Meter Deposit
$1,000.00
$1,000.00
Duplicate Bill Processing Fee
$2.00
$2.00
Non-Sufficient Funds (NSF) Processing Charge
15% of the amount or $100,
whichever is smaller
15% of the amount or $]00,
whichever is smaller
Late Payment Charge
$55.00
$60.00
Removal of Landscaping to Access Meter
$75.00
$80.00
Septage Processing Chargell,OOO gallons
$31.00
$35.00
Grease Trap Waste Charge/l,OOO gallons
$42.00
$45.00
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Agenda Item No. 8e
June 24, 2008
Page 15 of 25
PUBLIC UTILITIES DIVISION
COLLIER COUNTY WATER-SEWER DISTRICT
UNIFORM BILLING, OPERATING,AND REGULATORY STANDARDS ORDINANCE
APPENDIX A - FEES, RATES AND CHARGES
SCHEDULE 1 - DISTRICT-WIDE WATER AND W ASTEW A TER RATES Pape 1 or 2
Agenda Item No. 8e
June 24, 2008
Page 16 of 25
Summan orExlstlm' and Pronosed Water Ratr!!
Existlnll:
Effective
October 1, 2007
Proposed!11
Effective
October 1,2008
Effective
October 1,2009
I. WATER SERVICE AVAILABILITY CHARGES
(Residential, MllltlfamUy, Commerdal, and Irrigation Only)
Meter Size
518"
314"
I"
1-1/4"
1.1/2"
'"
3"
4"
'"
'"
10"
11"
516.03
16.03
35_'8
44.79
67.45
105.88
195.72
324.00
644.70
1,029.53
1,863.33
2,516.69
$16.59
16.59
36.62
46.36
69.81
109.59
202.57
335.34
667.26
1,1)65.56
1,928.55
2,604.77
$17.17
17.17
37.90
47.98
72.25
113.42
209.66
347.08
690.62
1,102.86
1,996.05
2,695.94
VOLUME CHARGE PER 1,000 GALLONS
(Re.ldential, Multifamily, Commercial and irrigation Only)
Block 1
Block 2
Block 3
Block 4
BlockS
Block 6
S2.20
330
4.40
5.50
6.59
8.79
S2.28
3.42
4.55
5.69
6.82
9.10
S2.36
3.54
4.71
5.89
7.06
9.42
BLOCK RATE STRUCTURE
(Reliidentta.1, MoltUanilly, Commercta.1 and lrrigation Only)
Consumption Rlock. {JpToOrNnt
!!!2!;tl J!!Wil BlockJ !lliliU BlockS Block 6
5.000 10,000 20,000 30,000 50,000 Over 50,000
5,000 10,000 20,000 30,000 50,000 Over 50,000
12,000 25,000 50,000 75,000 120,000 Over 120,000
20,000 40,000 80,000 120,000 200,000 Over 200,000
25,000 50,000 100,000 150,000 250,000 Over 250,000
40,000 80,000 160,000 240,000 400,000 Over 400,000
80,000 160,000 320,000 480,000 800,000 Over 800,000
120,000 250,000 500,000 800,000 1,200,000 Over 1,200,000
250,000 500,000 t,OOO,OOO I,SOO,OOO 2,500,000 Over 2,500,000
450,000 900,000 1,800,000 2,700,000 4,500,000 Over 4,500,000
700,000 1,450,000 2,900,000 4,300,000 7,000,000 Over 7,000,000
1,075,000 2,150,000 4~'00,000 6,450,000 11,000,000 Overlt,OOO,OOO
~
5/8"
314"
I"
1-1/4"
1-1/2"
'"
3"
4"
'"
'"
10"
12"
II) Proposed rates to become effective with senlce rendered on and after October lstofeacb filical year Indicated.
Summarv of Ed.tin'" and ProDosed Wastewater Rateli
Exilitln2
Effective
October 1,2007
Effective
October I, 2008
Proposed 11]
Effective
October 1,2009
2. W ASTEW A TER SERVICE AVAILABILITY CHARGES
(Reliidential, MultifamUy, and Commercial)
MeterSi>:e
W
3/4"
'"
1-114"
1-112"
,"
3"
4"
'"
'"
W
11"
524.49
24.49
55.67
71.38
107.72
170.22
315.96
523.93
1,044.12
1,668.55
2,991.50
4,433.89
525.35
25.35
57.62
73.88
111.49
176.18
327.02
542.27
1,080.66
1,726.95
3,096.20
4,589.08
S26.23
26.23
59.64
76.46
115.39
181.34
338.46
561.25
1,118.49
1,787_'9
3,204.57
4,749.69
VOLUME CHARGE PER 1,000 GALLONS
(Reliidentlal, Multlfamlly, and Commercial)
All Uliage 12]
$3.44
S3.56
S3.69
!I) Proposed rates to become effective with lienlee rendered on and after October 1st or each fiscal year Indicated.
12JMonthlylndlvlduallymeteredresidentialusaeecbargesarecappedatI5,000gallons.
Agenda Item No. 8e
June 24, 2008
Page 17 of 25
PUBLIC UTILITIES DIVISION
COLLIER COUNTY WATER-SEWER DISTRICT
UNIFORM BILLING, OPERATING, AND REGULATORY STANDARDS ORDINANCE
APPENDIX A - FEES, RATES AND CHARGES
SCHEDULE 1- DISTRICT-WIDE WATER AND WASTEWATER RATES Page 2 of2
3. Fire Systems (Dedicated and Compound):
(a) Fire Meter
(i) Fire Service meter size will refer to the largest diameter meter register installed for fire protection.
(ii) Fire Service meter connections that have consumption in excess of 5,000 gallons in anyone billing
period are deemed to have provided domestic or other water usage and shall be billed according to
regular water monthly availability and usage charges as described herein.
(b) Volume charge
(i) Per 1,000 gallons
4. Water Restriction Surcharge:
Water Shortage Phase-
Phase 2 - Severe
Phase 3 - Extreme
Phase 4 - Critical
Percent Reduction Goal
In Overall Demand
30%
450,10
60%
Flow charge Rate
Adjustment Percentage
15010
30%
40%
- Per the South Florida Water Management District (SFWMD) Water Shortage Plan
Pnrsuant to Chapter 40E-21 of the Florida Administrative Code (F AC)
The surcharge will be applicable to the volume charge for all single family, multi-family and non-residential
accounts for all consumption greater than Block 2. The Block Structures are specified in Section One above. The
surcharge is not assessed against the service availability charge.
The water restriction surcharge will start on the first billing cycle of the month following the imposition of the
restrictions. The surcharge will cease on the first billing cycle of the month following the revocation or lifting of
the restrictions.
m
Agenda Item No. 8e
June 24, 2008
Page 18 of 25
Public Resources Mauagement Group, Inc.
Utility, Rate, Financial and Management Consultants
June 24, 2008
PRMG No. 1125-19
Honorable Chairman and Members of the
Board of County Commissioners
Collier County
3301 Tamiami Trail East
Naples, FL 34112
Subject:
Fiscal Year 2008 Water and Wastewater User Rate Study
Ladies and Gentlemen:
Public Resources Management Group, Inc. (PRMG) has completed our review of the water and
wastewater user rates for the Collier County (the "County") Water-Sewer District (the "District")
water and wastewater system (the "System"), and have summarized the results of our analyses,
assumptions, and conclusions in this report which is submitted for your consideration. The
analysis encompassed a financial evaluation of the operations and expenditure needs of the
System for the six fiscal year period ending September 30,2008 through 2013 and the evaluation
of the sufficiency of the rate revenues to meet such needs. Based on the assumptions relied upon
in the development of the System expenditure requirements, PRMG has identified the need for
additional rate adjustments for both the water system and the wastewater system.
The primary reasons for the identified rate adjustments are to:
1. Provide sufficient revenues and cash flow to fund the six-year capital improvement
program (CIP) of the District as outlined in the 2007 Water and Wastewater Master Plan
Updates (the "2007 Master Plan Updates") prepared by the District's Consulting Engineers.
The projects in the CIP as outlined in the 2007 Master Plan Updates are considered by the
utility staff to be critical in order to provide long-term reliable and sustainable utility
service to System customers.
2. Continue to fund the costs of operations, which continue to increase due to, among other
things, the following:
a. Inflationary effects on the costs of goods and services (prices of electricity and raw
materials such as fuel and chemicals have increased substantially, as have the costs of
overall governmental services);
b. Labor costs, including incremental increases in staffing as a result of System growth
and the capital program identified by the District;
c. Increased costs and regulatory pressure on the costs of treatment; and
K:\DM\1125-19\Repon\user Rate Report\User Fee Letter from PRMG.doc
Honorable Chairman and Members of the
Board of County Commissioners
Collier County
June 24, 2008
Page 2
Agenda Item No. 8e
June 24, 2008
Page 19 of 25
d. Increased costs associated with the addition of new facilities.
3. Maintain appropriate System rate covenants which include debt service coverage margins
and the maintenance of certain funds and accounts.
4. Maintain adequate operating reserves and margins to ensure the continued creditworthiness
of the System and to provide funds for emergencies (e.g., hurricane preparedness) and
other purposes.
Based on discussions with County staff and the six-year financial analysis and funding policies
for the System, the report recognizes the following revenue adjustments:
Summary of Proposed Water and Wastewater Revenue Adjustments
Effective Date Water System Wastewater System Combined (Average) System
October I, 2008 3.5% 3.5% 3.5%
October I, 2009 3.5% 3.5% 3.5%
October I, 2010 [I] 2.7% 2.7% 2.7%
October 1,2011 [1] 2.7% 2.7% 2.7%
October 1, 2012 [1] 2.7% 2.7% 2.7%
[1] The actual adjustment is recommended to be 2.7% or the change in the Miami-Fort Lauderdale
Consumer Price Index (all urban consumers), whichever is greater.
These adjustments are considered by utility staff to be representative of the increases in costs to
effectively operate and maintain the System given the specific requirements of the System
service area. The adjustments for the Fiscal Years 20]] through 20]3 are intended to enable the
District's user rates to keep up with inflation under the recognition that, in the years immediately
following the forecast period, the District's capital expenditure needs per the 2007 Master Plan
Updates increase significantly as a result of the District's having to build new treatment capacity
to serve anticipated growth in the utility service area. For the Fiscal Years 20]] to 2013, PRMG
recommends that the adjustments be equal to 2.7% or the change in the Miami-Fort Lauderdale
Consumer Price Index (all urban consumers), whichever is greater. The long-term compound
annual growth rate of the Miami-Fort Lauderdale Consumer Price Index has been about 3% per
year.
It should be noted that the proposed revenue adjustments are lower than the adjustments
forecasted during the previous user rate study performed in 2006 and communicated to the Board
of County Commissioners, as demonstrated in the following table:
K:\l 125-19\Report\Uscr Rate Report\User Fee Letter from PRMG_doc 2
Honorable Chairman and Members of the
Board of County Commissioners
Collier County
June 24, 2008
Page 3
Agenda Item No. 8e
June 24, 2008
Page 20 of 25
Effective Date
October 1, 2008
October 1, 2009
October 1, 2010
Combined (Average) System Projected Revenue Adjustments
CURRENT RATE 2006
SruDY RATESruDY
3.5% 9.0%
3.5% 6.0%
2.7% 6.0%
Since the last formal master planning, impact fee and user rate studies performed in 2006, the
District has experienced: i) a significant decrease in customer growth due to economic
slowdowns; and ii) a decline in usage revenues due to the imposition of general water use
restrictions by the South Florida Water Management District. Moreover, the latest County
planning estimates show a substantial reduction in the total population growth projections for the
District. Whereas the County planning estimates prepared in November 2005 projected that
403,267 people would reside within the District by 2025, the March 2008 (most recent) planning
estimates have reduced this number to 275,900, a 32% decrease. As such, the District has
adjusted its projected capacity and capital expenditure needs accordingly, including the
postponement of certain treatment capacity expansions.
The District is planning to conduct another user rate study in two years to determine whether the
asswnptions as outlined herein (e.g., customer growth) match the actual financial performance of
the System and to validate the overall financial forecast. Issues that could affect the financial
forecast include, but are not limited to, customer growth and capacity demands, continued effects
of conservation, cash flow expenditures for capital projects, inflation, overall business principles,
and other factors. As such, only the first two rate adjustments are being recommended for
adoption by the County at this time.
During the course of the current rate study, the utility administration and PRMG determined that
certain guidelines should be followed while evaluating the sufficiency of the user rates. These
guidelines included:
I. Existing customers, to the extent practical, should not finance or be impacted by the cost of
financing and constructing water and wastewater infrastructure to serve new growth.
Capital projects - including new facilities being added to accommodate new growth -
should first be financed through system development charges (impact fees) and Allowance
for Funds Prudently Invested (APPI) fees. If impact fee and AFPI fee collections are
insufficient to pay for the total cost of the capital projects, user rate revenues collected from
new customers connecting to the System should be used to pay for the debt financing of
such projects.
2. The user rates should be sufficient to recover the costs of providing service. The cost of
service includes System operating costs and debt service along with the accrual of funds for
working capital and for pay-as- you-go capital financing that is anticipated in future years.
K:\1125-19\Report\User Rate Report\User Fee LetWr from PRMG.doc 3
Honorable Chairman and Members of the
Board of County Commissioners
Collier County
June 24, 2008
Page 4
Agenda Item No. 8e
June 24, 2008
Page 21 of 25
3. The user rates should maintain the overall financial creditworthiness of the System. This
guideline entails the following:
a. Maintenance of adequate operating reserves [Target balance: at least 90 days of
operations and maintenance expenditures plus the target minimum deposit to the
System capital accounts (renewal and replacement fund equivalents) equal to 10% of
the previous year's gross revenue].
b. Maintenance ofreasonable debt-to-net fixed asset financial ratio (not to exceed 55%).
c. Compliance with the rate covenants outlined in both the Bond Resolution which
authorized the issuance of the outstanding senior lien bonds and the existing Loan
Agreements with the Florida Department of Environmental Protection (i.e., State
Revolving Fund loan program), which are considered as subordinate lien bonds of the
System.
d. Mainlenance of strong financial position consistent with performance criteria used by
rating agencies and the utility industry.
4. The proposed user rates should be competitive with those of neighboring utility systems.
A summary of the existing and proposed water rates is shown on Table ES-I immediately
following this letter, while a summary of the existing and proposed wastewater rates is shown on
Table ES-2.
Table ES-3 following this letter provides a financial overview of forecasted System operations.
This table indicates the following for all projected fiscal years, assuming that the proposed user
rate adjustments for all fiscal years are implemented:
I. Overall debt service coverage [net revenues divided by the annual debt service requirement
(senior lien plus subordinate lien)] of at least 150% (or approximately 150%).
2. Maintenance of adequate operating reserves (liquidity).
3. Full utilization of internal funding sources (e.g., impact fees, capital account deposits)
before use of external debt financing to fund the System capital improvement program.
4. Estimated debt-to-net fixed asset ratio in all fiscal years that is less than the not-to-exceed
target of 55%.
Based on the assumptions relied upon in the preparation of the financial forecast and assuming
the implementation of the proposed revenue adjustments and the projections as contained herein,
the utility should remain in a strong financial position throughout the forecast period.
K\1125-19\Report\User Rate Report\U~er Fee Letter from PRMG.doc 4
Honorable Chairman and Members of the
Board of County Commissioners
Collier County
June 24, 2008
Page 5
Agenda Item No. 8e
June 24, 2008
Page 22 of 25
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
Based on our studies, assumptions, considerations, and analyses, PRMG offers the following
observations and opinions for consideration by the Board of County Commissioners:
1. The District's existing user rates for water and wastewater service are not anticipated to
recover the District's projected water and wastewater utility revenue requirements for the
fiscal years ending September 30,2008 through 2013.
2. The County should consider adopting the Fiscal Year 2009 and Fiscal Year 2010 water and
wastewater system user rate adjustments as outlined in the report. The adjustments are
anticipated to generate the following increases in revenue:
Effective Date
of Rate Increase
October 1, 2008
October 1,2009
Estimated Increase in
Water System Revenue
3.5%
3.5%
Estimated Increase in
Wastewater System Revenue
3.5%
3.5%
Estimated Increase in
Total System Revenue
3.5%
3.5%
The proposed revenue adjustments needed are lower than the adjustments projected for
these fiscal years during the previous rate study performed in 2006. It is important to note
that, due to the proposed rate design and actual usage of a given customer, the increase in
such customer's bill may be higher or lower than the overall increases in utility System
revenue anticipated to be generated from the proposed rates.
3. The County should consider adopting a price indexing rate adjustment clause in its existing
rate ordinance to enable the utility to automatically adjust monthly rates for water and
wastewater service - without a formal rate hearing or analysis - for inflationary effects on
the costs of operations. Based on discussions with County staff, PRMG recommends that
the annual index adjustment be calculated by applying one-hundred-percent (100%) of the
percentage change in the Miami-Fort Lauderdale Consumer Price Index (all urban
consumers) as reported by the Bureau of Labor Statistics as of April each year or 2.7%,
whichever is greater, to the monthly base charges and consumption / volumetric charges.
Although the District performs a rate study every two years, having a price indexing rate
adjustment clause may benefit the District when its senior lien revenue bonds (new or
already-issued) are reviewed by bond rating agencies. Such a clause would help to assure
the rating agencies that the District's rates would keep up with inflation and, hence, there
would be less implied risk that the District would default on any debt service payments.
4. The proposed water and wastewater user rates are comparable with the rates charged by
"neighboring" utility systems. At a usage level of 8,000 gallons, the historical average
montWy usage of a single family residential customer of the System, bills for combined
water and wastewater service under the proposed rates for Fiscal Year 2010 (the second
phase of the proposed rate adjustments) would be lower than the bills current Iv charged by
DeSoto County, the City of Fort Myers, the FGUA Golden Gate system, Okeechobee
K:\1125-19\Report\User Rate Report\User Fee Letter from PRMG.doc 5
Honorable Chairman and Members of the
Board of County Commissioners
Collier County
June 24, 2008
Page 6
Agenda Item No. 8e
June 24, 2008
Page 23 of 25
Utility Authority, Charlotte County, the City of Marco Island, Sarasota County, the City of
North Port and the FGUA Lehigh Acres system for similar service. Moreover, at least
fifteen of the surveyed utilities: i) are involved in a rate study; ii) are planning to conduct a
rate study; or iii) will implement a rate revision within the next twelve months.
5. The actual results achieved during the forecast period reflected in this report may vary from
those projected, and such variations could be material. For example:
a. Actual customer growth and usage may be higher or lower than projected.
b. The District's capital needs may be higher or lower than those projected and assumed
in this report (which total $222.8 million for the six fiscal year period ending
September 30, 2013).
PRMG recommends that the District reevaluate the sufficiency of its water and wastewater
user rates on at least an annual basis to reconcile actual results with those projected herein
and to validate the overall financial forecast for ongoing strategic planning purposes.
6. The proposed rates, if implemented as assumed in this report, are anticipated to be
sufficient to meet the rate covenants of the Bond Resolution and Florida Department of
Environmental Protection loan agreements. The additional debt anticipated to be incurred
by the utility during the financial forecast period recognized in this report consists only of
additional disbursements under the utility's existing State Revolving Fund loans.
The ability of the System to meet the debt service requirements and comply with the rate
covenants of the Bond Resolution which authorized the issuance of the outstanding System debt
is subject to assumptions and considerations identified in this report and information obtained
during preparation of the report regarding the System.
K;\1125-19\Report\User Rate Rcport\UserFee Leller from PRMG.doc 6
Honorable Chairman and Members of the
Board of County Commissioners
Collier County
June 24, 2008
Page 7
Agenda Item No. 8e
June 24, 2008
Page 24 of 25
We appreciate the opportunity to be of service to the County and would like to thank the County
staff for their assistance and cooperation during the course of this study.
Very truly yours,
Publlc Resources Management Group, Inc.
Robert J. Ori
President
Bryan A. Mantz
Senior Consultant
K:\l 125-19\Repon\User Rate Report\User Fee Letter from PRMG.doc 7
Agenda Item No. 8e
June 24, 2008
Page 25 of 25
PUBLIC UTILITIES DIVISION
COLLIER COUNTY WATER-SEWER DISTRICT
UNIFORM BILLING, OPERATING AND REGULATORY STANDARDS ORDINANCE
APPENDIX A - FEES, RATES AND CHARGES
SCHEDULE 5 - EQUIPMENT, LABOR AND ADMINISTRATION CHARGES Page 1 of 1
DESCRIPTION
Effective October. 1,2007
Effective October 1, 2008
(1) Eauioment {Per Hour Rates}:
Rehab & electrician's Truck
$75.00
$50.00
$200.00
$150.00
$100.00
$70.00
$40.00
$200.00
$50.00
$65.00
$60.00
$40.00
$10.00
$15.00
$45.00
$100.00
$15.00
$5.00
$77.00
$51.00
$207.00
$155.00
$103.00
$72.00
$41.00
$207.00
$51.00
$67.00
$62.00
$41.00
$10.00
$15.00
$46.00
$103.00
$15.00
$5.00
Crew Truck
Vactor Truck
Camera Truck
Boom Truck
20 Yard Dump Truck
10 Yard Dump Truck
Pumper Truck
Track Hoe (Big or Small)
Back Hoe
Olympian Generators
Dewatering System
4" Trash Pump
Mud Hog
Trailer
Signs, Barricades and/or Traffic Board
Road Saw and/or compactor
Miscellaneous Small Equipment
e2l Labor (Per Hour Ratesl:
Tech 1 & 2
$30.00
$40.00
$31.00
$41.00
Supervisors
(3) Administration (Per incident)
15% or $300; whichever is
smaller
15% or $300; whichever is
smaller
C4l Parts and Sub~contractors
Actual cost
Actual cost