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CCWWA Agenda 02/28/2025 Staff Liaison: Heather Yilmaz Management Analyst, GMCD (239) 252-8389 Collier County Water & Wastewater Authority Growth Management Community Development Operations & Regulatory Management Division Friday, February 28, 2025 3:00 pm 2800 N. Horseshoe Dr. Naples, FL 34104 Growth Management Community Development Department Conference Room 609/610 For more information, please contact Heather Yilmaz at (239) 252-8389 or at Heather.Yilmaz@colliercountyfl.gov Collier County Water & Wastewater Authority Agenda Friday, February 28, 2025 2:00 pm 2800 N. Horseshoe Dr., Naples, FL 34104 Growth Management Community Development, Conference Rooms 609/610 NOTICE: All persons wishing to speak on any agenda item must register prior to speaking. Requests to address the Authority on subjects, which are not on this agenda, must be submitted in writing with an explanation to the Executive Director, Collier County Water and Wastewater Authority, GMCD/Office of Operations and Regulatory Management, 2800 Horseshoe Drive North, Naples Florida 34104, at least ten (10) days in prior to the date of the meeting and will be heard under “Open to the Public.” Any person who decides to appeal a decision of this Authority will need a record of proceedings pertaining thereto, and therefore may need to ensure that a verbatim record of proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. All registered public speakers will be limited to three (3) minutes unless permission for additional time is granted by the Chairman. Authority Members: Eloy Ricardo, Chairman Patricia Sherry, Vice Chairman Bryant Collins Eugene Wordehoff Don Munksgaard Legal Counsel: Derek D. Perry, Assistant County Attorney Executive Director: Michael Stark, Director - Operations & Regulatory Management, GMCD Staff Liaison: Heather Yilmaz Management Analyst, GMCD For more information, please contact Heather Yilmaz at (239) 252-8389 or at Heather.Yilmaz@colliercountyfl.gov A G E N D A I.Call to Order (Determination of Quorum) and Roll Call a.Annual Election of Officers II.Approval of Agenda – Meeting of February 28, 2025 III.Motion for Electronic Approval of Minutes – Meeting of February 28, 2025 IV.Items Requiring Action by Authority a.Final Order 2025-01 – Ave Maria Utility Company, 2025 Price Index Page 27 V.Staff Discussion a.AMUC – Annual Report Update VI.Open to the Public VII.Authority Members Discussion VIII.Adjourn Growth Management Community Development Operations & Regulatory Management Division TO: Chairman, Collier County Water and Wastewater Authority FROM: Michael Stark, Director, Collier County Water and Wastewater Authority and Director of Operations & Regulatory Management, Growth Management Department SUBJECT: Authority Agenda Item – February 28, 2025 Annual Election of Officers – Chairman and Vice Chairman DATE: February 28, 2025 RECOMMENDATION: The Authority elects a Chairman and Vice Chairman to serve the Authority as officers for the coming year. REQUESTED ACTION: The Authority, by nomination and vote, selects a Chairman and Vice Chairman to serve a term of one year, pursuant to Ordinance No. 96-6, as amended. REPORT: The Collier County Water and Wastewater Authority was established by Ordinance 96-6 on February 27, 1996. The Board of County Commissioners appointed the original members to the Authority on May 21, 1996. The last election was held on February 29, 2024, and the Authority has not met in an official capacity since August 05, 2024. In previous years, the chairman and vice chairman positions have been elected by fellow Authority members. After selection by majority vote, staff recommends the outgoing chairman pass the gavel to the incoming chairman, thus turning the meeting over to the new chairman. THIS PAGE INTENTIONALLY LEFT BLANK Growth Management Community Development Operations & Regulatory Management Division TO: Chairman, Collier County Water and Wastewater Authority FROM: Michael Stark, Director, Collier County Water and Wastewater Authority and Director of Operations & Regulatory Management, Growth Management Department SUBJECT: Authority Agenda Item - Final Order No. 2025-01 DATE: February 28, 2025 RECOMMENDATION: To have the Authority approve Final Order No. 2025-01, establishing the 2025 Price Index Factor for investor-owned water and/or wastewater utilities operating in Collier County. REQUESTED APPROVAL: Request the Authority review the attached Florida Public Service Commission (FPSC) Order No. PSC-2024-0502-PAA-WS issued December 17, 2024, establishing the 2025 Price Index of 2.23 percent; and approving Final Order No. 2025-01, establishing the equivalent 2025 Price Index for investor-owned utilities operating in Collier County. REPORT: Section 1-6 (I), Collier County Ordinance No. 96-6, as amended, requires the Authority to adopt a price index for investor-owned water and/or wastewater utilities no later than May 15th of each year, equivalent to the price index established annually by the FPSC. The 2025 Price Index was effective on January 07, 2024, via the FPSC’s Consummating Order No. PSC-2025-0012- CO-WS. The index is applied to the major categories of operation and maintenance costs incurred by water and/or wastewater utilities, except for the amortization of rate case expenses and those operating costs subject to pass-through adjustments, reflecting the percentage of increase (or decrease) of such costs from the most recent 12-month historical period available. The maximum allowable increase resulting from the application of the 2025 Price Index can be no greater than 2.23 percent. Staff recommends the adoption of Final Order No. 2024-01, approving the 2025 Price Index and the forms required for filing the price index adjustment. FILED 1/7/2025 DOCUMENT NO. 00098-2025 FPSC -COMMISSION CLERK BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION In re: Annual reestablishment of price increase or decrease index of major categories of operating costs incurred by water and wastewater utilities pursuant to Section 367.081 (4)(a), F.S. DOCKET NO. 20250005-WS ORDER NO. PSC-2025-0012-CO-WS ISSUED: January 7 , 2025 CON SUMMA TING ORDER BY THE COMMISSION: By Order No. PSC-2024-0502-PAA-WS, issued December 17, 2024, this Commission proposed to take certain action, subject to a Petition for Formal Proceeding as provided in Rule 25-22.029, Florida Administrative Code. No response has been filed to the order, in regard to the above mentioned docket. It is, therefore, ORDERED by the Florida Public Service Commission that Order No. PSC-2024-0502- PAA-WS has become effective and final. It is further DD ORDERED that this docket shall remain open. By ORDER of the Florida Public Service Commission thi s 7th day of January, 2025. Commissioef Clerk Florida Pub~ic Service Commission 2540 Shumard Oak Boulevard Tallahassee , Florida 32399 (850) 413-6770 www.floridapsc.com Copies furnished: A copy of this document is provided to the parties of record at the time of issuance and , if applicable, interested persons. ORDER NO. PSC-2025-0012-CO-WS DOCKET NO. 20250005-WS PAGE 2 NOTICE OF FURTHER PROCEEDINGS OR JUDICIAL REVIEW The Florida Public Service Commission is required by Section 120.569(1), Florida Statutes, to notify parties of any judicial review of Commission orders that is available pursuant to Section 120.68, Florida Statutes, as well as the procedures and time limits that apply. This notice should not be construed to mean all requests for judicial review will be granted or result in the relief sought. Any party adversely affected by the Commission’s final action in this matter may request judicial review by the Florida Supreme Court in the case of an electric, gas or telephone utility or the First District Court of Appeal in the case of a water and/or wastewater utility by filing a notice of appeal with the Office of Commission Clerk and filing a copy of the notice of appeal and the filing fee with the appropriate court. This filing must be completed within thirty (30) days after the issuance of this order, pursuant to Rule 9.110, Florida Rules of Appellate Procedure. The notice of appeal must be in the form specified in Rule 9.900(a), Florida Rules of Appellate Procedure. ATTACHMENT “A” Final Order No. 2025-01 RE: Establishment of 2025 Price Index Factor February 28, 2025 Collier County Water and Wastewater Authority FINAL ORDER NO.2025-01 COLLIER COUNTY WATER AND WASTEWATER AUTHORITY A FINAL ORDER OF THE COLLIER COUNTY WATER AI\D WASTEWATER AUTHORTTY, PURSUANT TO SECTION 1-6, COLLIER COUNTY ORDTNANCE NO. 96-6, AS AMENDED, PROVIDING FOR THE ADOPTION OF THE 2025 PRICE INDEX FACTOR SET AIINUALLY BY THE FLORIDA PUBLIC SERVICE COMMISSION, FOR ATILIZATION IN PRICE INDEX RATE APPLICATIONS FOR INVESTOR-OWNED WATER AI\D/OR WASTBWATER UTILITIES OPERATING IN COLLIBR COUNTY. WHEREAS, Collier County Ordinance No. 96-6, as amended, provides for the Collier County Water and Wastewater Authority (AUTHOzuTY) to adopt a price index factor for water and/or wastewater utilities on or before May l5th of each calendar year for the utilization in price index rate application; and WHEREAS, Collier County Ordinance No. 96-6, as amended, provides that the price index factor shall be equivalent to the price index factor set annually by the Florida Public Service Commission (COMMISSION); and WHEREAS, the COMMISSION issued Order No. PSC-2024-0502-PAA-WS on December 17,2024,establishingthe2025 Pricelndex of 2.23 percentforwaterand/orwastewater utilities; and WHEREAS, the COMMISSION issued Consummating Order No. PSC-2025-0012-CO- WS on January 07,2025, enabling Order No. PSC-2024-0502-PAA-WS to become final and effective on January 07,2025 NOW, THEREFORE, IT IS HEREBY ORDERED by the Collier County Water and Wastewater Authority, in public meeting assembled, that: l. The 2025 Price Index is 2.23 percent. 2. Any water and/or wastewater utility that intends to increase its rates by implementation of this price index must notifo the AUTHORITY on or after the effective date of this Final Order of such intent and shall apply the 2025 Price Index to applicable 2024 calendar year operation and maintenance expenses. 3. Utilities using the 2025Price Index shall use the forms attached as Appendices "A", "B", "C" and "D", and shall follow all price index application requirements specified in Collier County Ordinance No. 96-06, as amended, before implementing any index. 4. This Order shall become effective upon adoption by the AUTHORITY and shall remain in effect until the AUTHORITY authorizes a change. [24-OPS-0 r 079n84s897 nl Page 1 of8 ero APPENDIX 66A" 2025 PRICE INDEX APPLICATION TEST YEAR ENDED DECEMBER3I,2O24l WATER WASTEWATERutilitv: 2024 Operation and maintenance Expenses (O&M) LESS: (a) Pass-Through Items: (1) Purchased Power (2) Purchased Water (3) Purchased Sewage Treatment (4) Othet': (b) Rate Case Expenses lncluded In 2023 Expenses (c) Adjustments to O&M Expenses from last rate case, if applicable: (l) (2) Costs to be Indexed Multiply by the 2025 Price Index Factor Indexed Costs Add: Pass-Through Items Total of Indexed Costs and Pass-Through Items 0.0223 0.0223 Divide Total of Indexed Costs and Pass-Through Items by Expansion Factor for Regulatory Assessment Fees 0.955 0.955 Increase in Revenue Divide by 2024 Annualized Revenue3 Percentage Increase in Rates lThis amount should be for the calendat year 2024.If the utility is on a fiscal year, a pro rata distribution between the utility's two affected annual reports should be included as a supplemental attachment. The annual reports or general ledgers should be used as the source document(s). The utility is required to send a worksheet showing the pro rata distribution. o Yo [24-OPS-0 l 079 I t84s897 I t)Page 3 of8 2lf applicable, deduct on this line any other expenses for which a pass-through has been received. Specifo the type of expense, which is being deducted. 3lfrates changed during or subsequent to calendar year 2024,the book revenues must be adjusted to show the changes, and an explanation of the calculation should be attached to this form. (See Appendix "B" for instructions and sample format.) o [24-OPS-0 I 079 I t 84 s897 t 1l Page 4 of 8 APPENDIX '68" ANNUALIZED REVENUE WORKSHEET Have rates charged for customer services changed since January 1,2024? ( ) If no, the utility should use actual revenues. This form may be disregarded. ( ) If yes, the utility must annualize its revenues. Complete the remainder of this form. Annualizing calculates the revenue the utility would have earned based upon 2024 customer consumption at the most current rates in effect. To complete this calculation, the utility will need consumption data for 2024 to apply to the existing rate schedule. Below is a sample, which may be used. CALC ULATION O F ANNUALIZED REVEN UES I Number of Bills/ Gallons Sold Current Rates Annualized Revenuesx Residential Bills '/a" x'h" meters l " meters I Vz" meters 2" meters Total No. Bills Gallons Sold Other Revenue General Service 518" xt/o" meters l" meters | /2" meters 2" meters 3" meters 4" meters 6" meters Total No. Bills Gallons Sold Other Revenue Total Annualized Revenues for 2024 2 2 [24-OPS-0 1 079t 184s897 n)Page 5 of8 (1A' 2 r- 2 -1- $ rAnnualized revenues must be calculated separately if the utility consists of both a water system and a sewer system. This form is designed specifically for utilities using a base facility charge rate structure. If annualized revenues must be calculated and further assistance is needed, contact the Utility Regulation Staff at (239)252-4150. 2Complete only if billing charge is separate. Aoo [24-OPS-0 l 079 I 1 84s897 I tl Page 6 of8 APPENDIX "C" AFFIDAVIT I,UNDER OATH hereby affirms that I am the duly authorized representative of and that the figures and calculations upon which the change in rates is based are accurate and that the change will not cause said to exceed its last authorized or calculated rate of return, which is %. This affidavit is made pursuant to this utility's request for a2025 price index rate increase Title (Print Name) Pursuant to Section 117.05(13)(a), Florida Statutes, the following notarial certificate is sufficient for an oath or affirmation: STATE OF FLORIDA COLINTY OF Sworn to (or affirmed) and subscribed before me by means of tr physical presence or E online notarization, this _ day of (vear) , by (name of person making statement) (Signature of Notary Public - State of Florida) (Print, Type. or Stamp Name of Notarv Public) Personally Known OR Produced Identification Type of Identification Produced o'{p [24-OPS-0 l 079t r84s897 I t)Page 7 of8 APPENDIX "D' NOTICE TO CUSTOMERS On February 28,2025, the Collier County Water and Wastewater Authority adopted provisions permitting water and wastewater utilities to adjust the rates it charges to its customers without those customers bearing the additional expense of a public hearing. The adjustments in rates would depend on increases or decreases in non-controllable expenses subject to inflationary pressures such as chemicals, and other operational and maintenance costs. On filed notice of intent with the Growth Management Department (GMD) Operations & Regulatory Management Division, to increase water and wastewater rates as a result of this action. If acknowledged and approved by the Collier County Water and Wastewater Authority, water rates will increase by approximately Yo and wastewater rates bY bill. Yo. The adjusted rates should be reflected on your Should you have any questions, please contact your local utility office. Be sure to have your account number handy for quick reference. Customers may also direct inquiries to the GMD Operations & Regulatory Management Division, 2800 Horseshoe Drive North, Naples, Florida 3 4104 at (239) 252-4t 50. [24-OPS-0 r 079t 184s897 I t)Page 8 of8 O'{C Water and Wastewater Authority Friday, February 28th, 2025 Meeting Agenda I.Call to Order (Determination of Quorum) and Roll Call a)Annual Election of Officers II.Approval of Agenda – Meeting of February 28, 2025 III.Motion for Electronic Approval of Minutes – Meeting of February 28, 2025 IV.Items Requiring Action by Authority a)Final Order 2025-01 – Ave Maria Utility Company, 2025 Price Index V.Staff Discussion a)AMUC – Annual Report Update b)Due Date: Wednesday, April 30, 2025 VI.Open to the Public VII.Authority Members Discussion VIII.Adjourn Annual Election of Officers Ordinance 96-6 Collier County Water and Wastewater Utilities Regulatory Ordinance. Section 1-3. Collier County Water and Wastewater Authority: Powers and Duties. E. 7. The members of the Authority shall select a Chairman, a Vice-Chairman, and such other officer(s) as deemed desirable by the Authority. Each officer should generally be appointed to a term of at least one (1) year. Each officer may be reappointed to his/her same office, but no member shall serve in the same office for more than three (3) consecutive years and no member may be appointed to an office that extends beyond his/her then remaining appointment to the Authority by the Board (Page 8). Chairman Eloy Ricardo Vice Chairman Patricia Sherry Eugene Wordehoff Bryant Collins Donald Munksgaard Approval of Agenda & Minutes Florida Statute 286.011 Public meetings and records. (2) The minutes of a meeting of any such board or commission of any such state agency or authority shall be promptly recorded, and such records shall be open to public inspection. Approval of Agenda & Minutes Authority Staff Request for approval of minutes: Motion: To allow the chairmen or vice-chairmen to approve and electronically sign meeting minutes after all committee members have reviewed them by email and have no objections. Items Requiring Action by the Authority Final Order 2025-01 - Annual Price Index. 2025 Price Index and Pass-Through Ordinance 96-6 Collier County Water and Wastewater Utilities Regulatory Ordinance. Section 1-6. Rates. I. Rate Indexing. 1. On or before May 15 of each calendar year, the Authority shall adopt a price index for water and wastewater Utilities, which price index shall be equivalent to the price index established annually by the Florida Public Service Commission (FPSC). The index shall be the price index used by all Franchised Utilities until the Authority authorizes a change. 1.63%1.41%1.57%1.29%1.51%1.79%2.36%1.79%1.17% 4.53% 7.07% 3.24%2.23% 0.00% 2.00% 4.00% 6.00% 8.00% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Florida Public Service Commission (FPSC) Approved Index Staff Discussion Ordinance 96-6 Collier County Water and Wastewater Utilities Regulatory Ordinance. Section 1-14. Annual Financial Reporting Requirement. A. Each Utility shall annually, within one hundred and twenty (120) days of the close of its fiscal year, file with the Authority a Financial Report of its operation in Collier County during the fiscal year (Page 29). Due date: Wednesday, April 30, 2025. Open to the Public Authority Members Discussion Adjournment of the Water and Wastewater Authority