CCWWA Minutes 12/17/2012 December 17, 2012
MINUTES OF THE MEETING OF THE COLLIER COUNTY
WATER AND WASTEWATER AUTHORITY
1 � Jt� I
Naples, Florida, December 17, 2012
MAY I42t13
LET IT BE REMEMBERED, the Collier County Water and Wastewtcr U
Authority in and for the County of Collier, having conducted business
herein, met on this date at 2:00 P.M. in REGULAR SESSION at the Collier
County Growth Management Division Building Conference Room
609/610, 2800 N. Horseshoe Drive, Naples, Florida, with the following
members present:
CHAIRMAN: Dr. Fay Biles (Excused)
VICE CHAIRMAN: Lowell Lam
Jerry Morgan
Dr. Sherwin Ritter
(Vacancy)
ALSO PRESENT: Jamie French, Operations Director, GMD P&R
Jeff Wright, Assistant County Attorney
Ken Kovensky, Financial & Operational Support Manager
Ashley Lang, Management/Budget Analyst
1
December 17, 2012
I. Call to Order(Determination of Quorum) and Roll Call
Vice Chairman Lam called the meeting to order at 2:00 PM.
Roll call was taken and a quorum established.
Craig Woodward of North Marco Utility Co.,Inc.was present.
II. Approval of Agenda—Meeting of December 17,2011
Dr. Ritter moved to approve the Agenda. Second by Mr. Morgan. Carried unanimously
3- 0.
III. Approval of Minutes—Meeting of July 30,2012
Mr. Morgan moved approve the minutes of the July 30, 2012 meeting as presented.
Second by Dr. Ritter. Carried unanimously 3-0.
IV. Items Requiring Action by Authority
A. North Marco Utility Company—Price Pass Through and Index Application
Ken Kovensky,Financial and Operations Support Manager presented Final Order No.
2012-03 to adjust the wastewater rates of North Marco Utility Co., Inc. (NMU) by applying
the 2012 Price Index Factor to the allowable 2011 operation and maintenance expenses and
amortized pass through costs for wastewater(4.7%for the base facility charges and 4.8%
for the gallonage charge). The effective date of the increases would coincide with the
effective dates of the increased rates levied by the City of Marco Island Utility Department
(December 28, 2012).
He noted:
• There were different interpretations on how the proposed increase for the base
facility charge should be derived.
• Utility Regulation Staff uses the methodology for calculating rates by applying the
approve rate increase to the most recently approved tariff rates for each meter size
resulting in a proposed 4.7%increase in the base facility charge.
• The methodology used by NMU starts with the approved rate for the 5/8"and 3/4"
meter, and applies a meter equivalent multiplier to the other meter sizes.
• The NMU methodology results in an up to a maximum 4.7%increase for all meter
sizes, except for a 3" inch meter which yields an 11.5% increase.
Based on this,there are three options available for approval:
Option A: Staff's calculation using a 4.7%increase applied to the 3 inch meter.
Option B: NMU's calculation using the "meter equivalent"methodology that results in an
11.5% increase to the 3"meter size.
Option C: NMU removal of the 3"meter from their tariff.
Staff recommends either Option A or C be approved.
Discussion occurred on the ramifications of each option.
Mr. Woodward noted any of the 3 options would be acceptable, as there are no 3"meter
services within the system and none to be proposed in the foreseeable future.
2
December 17, 2012
Dr. Ritter moved to approve Request(Final Order No. 2012-03), including Option A as
outlined above for an increase of 4.7% to the base facility charge and 4.8% to the
gallonage charge for the North Marco Utility Co.,Inc. subject to the City of Marco
Island Utility Department's proposed rate increase becoming effective. Second by Mr.
Morgan. Carried unanimously 3-0.
V. Staff Discussion
Mr. French introduced Ashley Lang as a new member of the Staff.
VI. Open to Public
None
VII. Authority Member Discussion
Jamie French noted:
• The City of Marco Island Utility is now in the process of assuming control of the
Goodland Isles Waste Water Utility Company.
• The process required for the County to assume control of Orange Tree Utility is
ongoing.
There being no further business for the good of the County,the meeting was adjourned
by the order of the Chair at 2:43 PM.
COLLIER COUNTY WATER AND WASTEWATER
AUTHORITY
Dr. Fay Biles, Chairman
These Minutes weye approved by the Board/Chairman on (25\t,:66
as presented , or as amended
3