Agenda 09/09/2014 Item #17D 9/9/201417.D.
EXECUTIVE SUMMARY
Recommendation to adopt a Resolution adjusting the Collier County Water-Sewer District Bulk
Services Water Rates within the Hammock Bay Service Area,as authorized by the Potable Water
Bulk Services Agreement between the Colder County Water-Sewer District and The City of Marco
Island,dated May 9,2006.
OBJECTIVE: Approve a Resolution (Exhibit 1) that adjusts the Collier County Water-Sewer
District Bulk Services. Water Rates for potable water services to the Hammock Bay Service
Area
CONSIDERATIONS: The City of Marco Island (City) currently receives wholesale water
service within the Hammock Bay Service Area from the Collier County Water-Sewer District
(District) water system pursuant to the May 9, 2006, Potable Water Bulk Services Agreement
(Agreement)(Exhibit 2)between the District and the City.
The District requested that Public Resource Management Group, Inc., (Consultant) prepare an
updated analysis of the cost to provide water service to the City and to recommend rates
necessary to recover those costs. As set forth in the attached executive summary report(Exhibit
3),the Consultant calculates and staff recommends the bulk water service rate be increased from
the current rate of$3.64 per 1,000 gallons to $3.75 per 1,000 gallons effective October 1, 2014;
that the rate be increased to $3.82 per 1,000 gallons effective October 1, 2015; and that the rate
/'\ be increased to$3.85 per thousand gallons effective October 1, 2016.
On June 10, 2014, under Agenda Item 11.0 the Collier County Board of County Commissioners
(Board) approved the Water, Wastewater, Irrigation Quality Water and Bulk Potable Water Rate
Study and directed the County Manager or his designee to prepare a resolution to bring to the
Board for approval to advertise.
On July 8, 2014, under Agenda Item 16.C.6 the Board directed the County Manager or his
designee to advertise a resolution adjusting the Collier County Water-Sewer District Bulk
Services Water Rates within the Hammock Bay Service Area,as authorized by the Agreement.
FISCAL IMPACT: Anticipated additional revenue generated by the recommend rate increase
over the next three years is approximately$13,000.
LEGAL CONSIDERATIONS: This item is approved as to form and legality, and requires
majority vote for Board approval:SRT
GROWTH MANAGEMENT IMPACT: This action meets current Growth Management Plan
standards to ensure the adequacy and availability of viable public facilities.
RECOMMENDATION: That the Board of County Commissioners, Ex-officio the Governing
Board of the Collier County Water-Sewer District, adopt the attached Resolution adjusting the
bulk services water rates within the Hammock Bay Service Area, as authorized by the May 9,
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9/9/201417.D.
2006,Potable Water Bulk Services Agreement between the Collier County Water-Sewer District
and The City of Marco Island.
Prepared by: Laura Zautcke, Senior Management and Budget Analyst, Public Utilities Division-
Operations
Attachments
Exhibit 1 —Resolution
Exhibit 2—Agreement
Exhibit 3—PRMG Executive Summary
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9/9/2014 17.D.
COLLIER COUNTY
Board of County Commissioners
Item Number: 17.17.D.
Item Summary: Recommendation to adopt a Resolution adjusting the Collier County
Water-Sewer District Bulk Services Water Rates within the Hammock Bay Service Area,as
authorized by the Potable Water Bulk Services Agreement between the Collier County Water-
Sewer District and The City of Marco Island, dated May 9, 2006.
Meeting Date: 9/9/2014
Prepared By
Name: ZautckeLaura
Title: Management/Budget Analyst, Senior,Utilities Finance Operations
7/30/2014 10:59:28 AM
Submitted by
Title:Management/Budget Analyst, Senior,Utilities Finance Operations
Name: ZautckeLaura
7/30/2014 10:59:29 AM
Approved By
Name: Steve Messner
Title: Director-Water, Water
Date: 7/30/2014 11:31:12 AM
Name: HapkeMargie
Title: Recycling Coordinator, Solid&Hazardous Waste Management
Date: 7/30/2014 3:38:19 PM
Name: Joseph Bellone
Title: Director-Operations Support,Utilities Finance Operations
Date: 7/31/2014 12:55:32 PM
Name: TeachScott
Title:Deputy County Attorney, County Attorney
Date: 8/6/2014 11:17:00 AM
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9/9/2014 17.D.
Name: YilmazGeorge
Title:Administrator-Public Utilities,Public Utilities Division
Date: 8/15/2014 4:32:24 PM
Name:FinnEd
Title:Management/Budget Analyst, Senior,Transportation Engineering&Construction Management
Date: 8/18/2014 10:39:42 AM
Name:KlatzkowJeff
Title: County Attorney,
Date: 8/18/2014 3:28:47 PM
Name: OchsLeo
Title: County Manager, County Managers Office
Date: 8/25/2014 2:00:00 PM
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9/9/2014 17.D.
EXECUTIVE SUMMARY
AND RECOMMENDATIONS
PR
MG
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EXECUTIVE SUMMARY
AND RECOMMENDATIONS
The Collier County (the "County") Water-Sewer District (the "District") water, wastewater and
irrigation quality(IQ)water system(the "System") provides an essential service 24 hours per day
and 365 days per year. The utility operates in a highly-regulated environment. Regulatory
agencies for the District include the United States Environmental Protection Agency (EPA),
Florida Department of Environmental Protection (FDEP) and South Florida Water Management
District(SFWMD). Permits issued to the utility by these regulatory agencies require satisfactory
performance. If the utility does not comply with all applicable regulations, the County could
possibly face future consent orders or fines from the regulatory agencies.
The District System is established as a utility enterprise fund. General accounting policies and
prudent utility management recommend that the System have revenues (financial resources) at
least equal to the costs of providing services by the System. As such, the County should
establish rates sufficient to meet the cost of operating,maintaining, and repairing the system and
financing the ongoing capital improvements of the System in order to continue to provide a safe
and reliable service to the County's water,wastewater and IQ water customers.
Because of the County's need to ensure that utility revenues will be sufficient to meet System
operating and capital needs as well as comply with the rate covenant provisions of the utility's
current Bond Resolution and outstanding State Revolving Fund (SRF) loans, Public Resources
Management Group, Inc. (PRMG) was retained to perform a review of the user rates of the
System to evaluate the ability of System revenues to meet operating and capital needs.
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:
1. 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.
2. The user rates should maintain the overall financial creditworthiness of the System. This
guideline entails the following:
a. Maintenance of adequate operating reserves consistent with the County's reserve
policies.
b. 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.
ES-1
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9/9/2014 17.D.
c. Maintenance of strong financial position consistent with performance criteria used by
rating agencies and the utility industry.
3. The proposed rates should promote the continued conservation of water resources.
4. The proposed user rates should be competitive with those of neighboring utility systems.
Based on the assumptions relied upon in the development of the System expenditure
requirements and discussions with County staff, PRMG is recommending the following revenue
adjustments for the System:
Summary of Proposed Water,Wastewater and IQ Water Revenue Adjustments
Fiscal Year Ending September 30,
Water Wastewater IQ Water Combined
Effective Date System System System System
October 1,2014 9.00% 9.00% 9.00% 9.00%
October 1,2015 5.00% 5.00% 5.00% 5.00%
October 1,2016 5.00% 5.00% 5.00% 5.00%
October 1,2017 [1] 2.40% 2.40% 2.40% 2.40%
October 1,2018 [1] 2.40% 2.40% 2.40% 2.40%
[1] The actual adjustment is recommended to be 100%of the change in the Miami
Fort Lauderdale Consumer Price Index(all urban consumers), but not less than 0%.
The primary reasons for the identified revenue adjustments are to:
1. Provide sufficient revenues and cash flow to fund the six-year capital improvement
program (CIP) of the District. The projects in the CIP are considered by the utility staff to
be critical in order to provide long-term reliable and sustainable utility service to System
customers. As previously communicated by the utility staff to the Board of County
Commissioners, portions of the aging utility asset base have been identified as being at
high risk for breakdowns, service interruptions and spills. The multi-year capital program
developed by the District and its consulting engineers as part of the master planning
process has been structured to mitigate and manage the System risks. Since the CIP is
considered by the utility staff to primarily consist of projects representing ongoing
renewals and replacements of assets that are reaching the end of their service lives or
operational effectiveness, these projects are recognized in the financial forecast as being
funded through annual deposits from system revenues to the District's capital-related funds
(i.e.,pay-as-you-go funding). This approach provides the District with increased flexibility
in the funding of the capital program and promotes rate sustainability.
2. Continue to fund the costs of operations. Since the last time that the water and wastewater
user rates were increased for the Fiscal Year 2011, inflation has continued to affect System
operating margins. The following table indicates recent inflationary trends as reported by
ES-2
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the United States Bureau of Labor Statistics, Engineering News-Record and American City
and County:
Historical Inflationary Treads
Historical Annual Compound Growth Rate
Items 1-Year Change 5-Year Change 10-Year Change 20-Year Change
BUREAU OF LABOR STATISTICS
CPI-U.S.City Average 1.10% 2.03% 2.33% 2.39%
Electricity-U.S.City Average 3.84% 1.19% 3.91% 2.49%
FuelOi-U.S.City Average 2.94% 11.71% 10.86% 7.92%
Water and Sewerage Maintenance Index-U.S.City Average 3.64% 5.96% 5.80% 4.58%
ENGINEERING NEWS-RECORD
Construction Cost Index 2.80% 2.71% 3.34% 2.99%
AMERICAN CITY AND COUNTY
Municipal Cost Index 2.11% 2.71% 3.24% 2.71%
The costs of operations are projected to continue to increase during the Forecast Period due
to, among other things,the following:
a. Inflationary effects on the costs of electricity, chemicals, fuel and other major
expenditures for the utility;
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 due to regulatory requirements from the EPA,FDEP and SFWMD;and
d. Economic recovery has increased bid prices on contractual services (e.g., more
competition for limited resources).
3. Continue to fund the District's payment-in-lieu-of-taxes (PILT)to the General Fund. Since
the last user rate study, the County changed its transfer methodology from one based on
utility assets (e.g., property tax equivalent) to the current transfer policy of 5% of gross
receipts. This policy change has resulted in a higher PILT than what was projected in the
user rate study completed in 2011 (the "2011 Rate Study"),as shown in the following table:
Fiscal Year 2014 PILT: Comparison of 2011 Rate Study Projections with Actual Results
2011 Rate Study
Description Projections Actual Difference
Payment-In-Lieu-of-Taxes(PILT) $4,205,700 $5,121,300 $915,600
PRMG has assumed that the current policy would remain in effect throughout the Forecast
Period.
4. Maintain compliance with System rate covenants which include debt service coverage
margins and the maintenance of certain funds and accounts.
ES-3
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9/9/2014 17.D.
5. Maintain adequate operating reserves and margins consistent with County policies to ensure
the continued creditworthiness of the System and to provide funds for emergencies
(e.g.,hurricane preparedness)and other purposes.
6. Offset the loss of Allowance for Funds Prudently Invested (AFPI) fees that were charged
on a per Equivalent Residential Connection (ERC) basis to new growth. These fees, which
were first adopted in 2006, recovered the carrying cost for "holding" capacity until it is
reserved by development. The County stopped collecting these fees in Fiscal Year 2013
{ due to a sunset provision in the rate ordinance authorizing the fees, and it was assumed that
the fees would not be reinstated during the forecast period. During the Fiscal Year 2012,
the last full year of AFPI fee collections,the District collected$1,829,186 in AFPI revenue.
The rate study completed in 2011 assumed that collection of these fees would continue.
The financial evaluation contained in this study included the six fiscal year period ending
September 30, 2019 (the "Forecast Period"). The existing and proposed monthly water,
wastewater and IQ user rates are shown in Tables ES-1, ES-2 and ES-3, respectively, at the end
of this section.
Table ES-4 at the end of this section provides a financial overview of forecasted System
operations. This table indicates the following for all projected fiscal years:
1. Overall annual debt service coverage [net revenues divided by the annual debt service
{ requirement(senior lien)] of at least 150%after the Fiscal Year 2014. As discussed herein,
and based on bond rating agencies, a financial target for the debt service coverage ratio of
150% is recommended. According to the Utility Revenue Bond Rating Guidelines
published by Fitch Ratings(a rating agency which evaluates creditworthiness):
"For utilities in the most stable operating environments with a suitably diverse and healthy
service area economy, 1.5x annual coverage, with consistently maintained unrestricted
financial liquidity of at least 90 days of operating revenues, could be sufficient for AA-'or
higher ratings. For utilities with substantial growth, compliance demands, or significant
annual volatility in revenues or expenditures, greater financial flexibility may be
necessary."
The District's utility system is currently rated AA+with a positive outlook.
2. Maintenance of adequate operating reserves consistent with levels recognized in the
County's reserve policies.
3. Full utilization of internal funding sources (e.g.,operating reserves, capacity charge
collections)as the first or primary source of capital before use of external debt financing to
fund the System capital improvement program.
Based on the assumptions relied upon in the preparation of the financial forecast, the utility
should remain in good financial position throughout the Forecast Period identified in this report.
ES-4
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9/9/2014 17.D.
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 water and wastewater user rates have not been adjusted since the Fiscal Year
2011.
2. The District's existing monthly user rates for water, wastewater and IQ water service are
not anticipated to recover the District's projected water, wastewater and IQ water revenue
requirements for the fiscal years ending September 30,2014 through 2019.
3. The County should consider adopting the Fiscal Years 2015 through 2017 water,
wastewater and IQ water system user rate adjustments as outlined in this report. These
adjustments are anticipated to generate the following increases in revenue:
Estimated Increase in System Revenue
Water Wastewater IQ Water Combined
Effective Date System System System System
October 1,2014 9.00% 9.00% 9.00% 9.00%
October 1,2015 5.00% 5.00% 5.00% 5.00%
October 1,2016 5.00% 5.00% 5.00% 5.00%
4. 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,
wastewater and IQ water 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 from
January 1st through December 31st of the previous calendar year to the monthly base
charges and consumption/volumetric charges, but not less than 0%. Although the District
performs rate studies on a regular basis,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. The first annual indexing
adjustment is recommended to be implemented on October 1, 2017 unless superseded by
another rate study recommendation.
Such price indexing rate adjustment clauses are common among utilities in the State of
Florida.
5. The proposed water and wastewater user rates for the Fiscal Year 2015 are comparable
with the rates charged by "neighboring"utility systems. At an average monthly usage level
ES-5
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9/9/2014 17.D.
of 6,000 gallons, the typical usage of a single family residential customer of the System,
bills for combined water and wastewater service under the proposed rates are lower than
the average bill charged by eighteen surveyed utilities for similar service. Moreover, at
least twelve of the eighteen surveyed utilities: i) are involved in a rate study; ii)are
planning to conduct a rate study; or iii)plan to implement a rate revision within the next
twelve months. This comparison is shown in Figure ES-1 at the end of this section. As
shown in Figure ES-1,the increase in the monthly bill for a user of 6,000 gallons under the
proposed rates would be$7.48.
6. The proposed IQ water user rates for the Fiscal Year 2015 are comparable with the rates
charged by "neighboring" utility systems.
7. The District should consider increasing the wholesale or bulk water service rate to $3.75
per 1,000 gallons effective October 1, 2014, $3.82 per 1,000 gallons effective October 1,
2015 and$3.85 per 1,000 gallons effective October 1, 2016.
8. The County is currently securing major user agreements reflecting revised take-or-pay IQ
water allocations with its major users. The revised IQ water allocations become effective
October 1, 2015 (next year). PRMG recommends that the District consider performing an
IQ water rate study next year to possibly redesign the IQ water rates for each customer
class based on cost of service principles.
9. The utility is currently performing an audit of its fire protection system. Once the audit
results are finalized, PRMG recommends that the District consider a review of its fire
protection charges.
10. The actual results achieved during the Forecast Period reflected in this report may vary
from those projected,and such variations may 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.
c. The cost of goods and services (e.g., fuel and oil-based products) may be higher than
projected which may directly affect the operating margins of the utility and the long-
term ability to fund capital improvements.
PRMG recommends that the District reevaluate the sufficiency of its water,wastewater and
IQ water 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.
11. The proposed rates, when 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.
ES-6
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9/9/2014 17.D.
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. As such, this report should be read in its
entirety relative to such assumptions and considerations and the projections contained herein.
(Remainder of page intentionally left blank)
ES-7
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9/9/2014 17.D.
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Packet Page-3411-
9/9/2014 17.D.
RESOLUTION NO.2014-
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AS THE GOVERNING BODY OF
COLLIER COUNTY AND AS EX OFFICIO THE GOVERNING BOARD
OF THE COLLIER COUNTY WATER SEWER DISTRICT,ADJUSTING
THE COLLIER COUNTY WATER-SEWER DISTRICT BULK SERVICES
WATER RATES WITHIN THE HAMMOCK BAY SERVICE AREA, AS
AUTHORIZED BY THE POTABLE WATER BULK SERVICES
AGREEMENT BETWEEN THE COLLIER COUNTY WATER-SEWER
DISTRICT AND THE CITY OF MARCO ISLAND,DATED MAY 9,2006.
WHEREAS, on May 9, 2006, the Collier County Water-Sewer District (District),
through the Board of County Commissioners, entered into an agreement with the City of Marco
Island, entitled the Potable Water Bulk Services Agreement Between the Collier County Water-
Sewer District and the City of Marco Island(Agreement);and
WHEREAS,the Agreement provides that"The Water Service Commodity Charges may
be adjusted by the DISTRICT by Resolution in order to recover not less than the costs of
providing service. Notwithstanding the ability to adjust the Water Service Commodity Charges,
the DISTRICT may apply a price index rate adjustment to such rates annually effective October
1. The price index adjustment factor shall represent the change in the Miami—Ft. Lauderdale
MSA, FL, All Items Index as reported by the United States Bureau of Labor Statistics, or such
other Adjustment formula as the DISTRICT may then be applying uniformly to Bulk Water
Service Commodity Charges that may be in effect at the time of the application of the price
index rate adjustment.";and
WHEREAS, the DISTRICT has retained Public Resources Management Group Inc.
(Consultant) to review the existing bulk water rates and to recommend appropriate changes to
those rates;the Consultant has recommended an increase of$0.11 (3.0 percent)effective for the
Fiscal Year 2015,an increase of$0.07(1.9 percent)for the Fiscal Year 2016,and an increase of
$0.03(.8 percent)for the Fiscal Year 2017;and
WHEREAS, staff has thoroughly reviewed the Consultant's findings and
recommendations and staff concurs with the recommendation to increase the bulk water rates,
and staff recommends that the Board of County Commissioners adopts this Resolution to
implement the recommended changes;and
WHEREAS,the Board of County Commissioners finds that it is in the interest of health,
safety and welfare to accept the recommendations of the Consultant and staff.
NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY,FLORIDA,AS THE GOVERNING BODY
OF COLLIER COUNTY AND AS EX OFFICIO THE GOVERNING BOARD OF THE
COLLIER COUNTY WATER SEWER DISTRICT,that
I
Packet Page-3412-
9/9/2014 17.D.
�-• The Board of County Commissioners hereby declares, after advertised public hearing,
that the bulk water rates set forth in the revised Schedule to Section 4) b) of Exhibit D to the
Potable Water Bulk Services Agreement between Collier County Water-Sewer District and The
City of Marco Island, attached hereto, and incorporated be reference herein as Exhibit "A' are
fair and reasonable.
BE IT FURTHER RESOLVED that these revised bulk services water rates will take
effect as of 12:01 A.M.on Wednesday,October 1,2014,for Fiscal Year 2015,as of 12:01 A.M.
on Thursday,October 1,2015,for Fiscal Year 2016,and as of 12:01 A.M on Saturday, October
1,2016,for Fiscal Year 2017.
THIS RESOLUTION ADOPTED after motion; second and majority vote favoring
adoption this day ,2014.
ATTEST: BOARD OF COUNTY COMMISSIONERS
DWIGHT E.BROCK,CLERK OF COLLIER COUNTY, FLORIDA, AS
THE GOVERNING BODY OF COLLIER
COUNTY AND AS EX OFFICIO THE
By: GOVERNING BOARD OF THE COLLIER
,Deputy Clerk COUNTY WATER SEWER DISTRICT
By
TOM HENNING,CHAIRMAN
Approval as to form
and legal Sufficiency:
( HaLL
Scott R Teach
Deputy County Attorney
2
Packet Page-3413-
9/9/2014 17.D.
EXHIBIT A
Exhibit D,Section 4)b)of the
Potable Water Bulk Services Agreement Between the Collier County Water-Sewer District and the City of Marco Island
Agreement Dated May 9,2006
Existing/per Thousand Gal[1] Proposed/per Thousand Gal
Effective Effective Effective Live Effective
10/1/2012 10/1/2014 10/1/2015 10/1/2016
Commodity Charge:All metered Potable Water Flow $3.64 $3.75 $3.82 $3.85
[1]Adopted by Resolution 2011-31
C.-9)
Packet Page-3414-
9/9/2014 17.D.
POTABLE WATER BULK SERVICES AGREEMENT
BETWEEN THE COLLIER COUNTY WATER-SEWER DISTRICT AND
THE CITY OF MARCO ISLAND
THIS AGREEMENT, is made and entered into this I day of MAY iAy ,
• 2006, by and between The Collier County Water-Sewer District, a political subdivision
of the State of Florida, ("DISTRICT") acting by and through its Board of County
Commissioners, (District Board) the governing body thereof, and the City of Marco
Island, Florida, ("CITY"), acting by and through its City Council, the governing body
thereof.
RECITALS
WHEREAS, the CITY owns and operates a water system located in Collier
County, which provides service to an area referred to herein as the, Hammock Bay
Service Area; and
WHEREAS, the CITY desires that the Collier County Water-District (herein
"DISTRICT") provide cost-effective, long-term bulk potable water service only within
that part of the CITY'S potable water service area as is depicted on Exhibit B, attached
hereto, and desires to receive potable water production and treatment services from the
DISTRICT, all as specified in this Agreement; and
WHEREAS, the CITY has determined that the most cost effective alternative to
provide potable water service to the said potable water service area is through the
purchase of the subject bulk potable water service from the DISTRICT pursuant to this
Agreement; and
WHEREAS, the DISTRICT has adequate water production and treatment
capacity within its regional water system to meet the CITY'S Initial Contracted Capacity
(as defined herein); and
WHEREAS, the CITY hereby agrees to connect its potable water system to the
DISTRICT'S potable water system to enable the DISTRICT to provide the mutually
agreed to quantities of potable water service to the CITY ("Wholesale Water Services")
for resale to the CITY'S customers in that geographic area; and
WHEREAS, subject to the conditions and limitations cited herein, the DISTRICT
agrees to sell bulk potable water service to the CITY (purchaser) for resale to the
�-. CITY'S potable water customers within that specific geographic area; and
WHEREAS, the DISTRICT and the CITY desire to enter into and execute this
Packet Page-3415- 1
9/9/2014 17.D.
Agreement setting forth the terms and provisions for the subject sale and purchase of
these Bulk Water Services.
NOW THEREFORE, the DISTRICT and the CITY hereby covenant and agree as
follows:
SECTION 1. RECITALS. The above recitals are true and correct and are
incorporated herein.
SECTION 2. DEFINITIONS. The following words shall have the following
meanings unless the context hereof requires otherwise:
"Agreement" shall mean this Potable Water Bulk Services Agreement between
the DISTRICT and the CITY.
"Average Daily Flow" or "ADF" means the average potable water use
measured by metering at the Point of Delivery for any period of time and shall equal the
total quantity of potable water delivered divided by the number of days for that period of
time corresponding to such quantity of water delivered.
"Bulk Water Services" shall mean the potable water services, provided to the
CITY by the DISTRICT at the Point of Delivery, and associated with the production,
treatment, and transmission of such bulk potable water for exclusive use by the CITY
for only resale to the CITY'S retail potable customers situate within CITY'S Service
Area as defined in this Agreement.
"Billing Period" means that period of time for which bulk potable water is
delivered by the DISTRICT to the CITY for Bulk Water Service which serves as the
billing determinant basis for which the Commodity Charges are imposed by the
DISTRICT, which period will generally average thirty(30) days.
"CITY " means the City of Marco Island, a political subdivision of the State of
Florida.
"City's System" means the potable water system that serves the CITY'S
potable water customers.
"City Service Area" means that geographic area of the CITY as shown in
Exhibit B hereto.
"Commodity Charge" means the bulk service water rates charged by the
Packet Page-3416- 2
9/9/2014 17.D.
DISTRICT to the CITY for Bulk Water Services pFovided by the DISTRICT to the CITY
pursuant to this Agreement during a Billing Period based on all metered or estimated
water flow delivered by the DISTRICT to the CITY TY at the Point of Delivery.
"Contracted Capacity" means the gallonage amount of potable water
production and treatment capacity measured at the Point of Delivery expressed on a
maximum month daily flow basis that is reserved through this Agreement between the
CITY and the DISTRICT for the CITY'S exclusive use for resale to the CITY'S potable
water customers only within the geographic area depicted in Exhibit B, attached hereto.
"County" means Collier County, Florida, a political subdivision of the State of
Florida.
"CPI" means a price index adjustment factor used to adjust rates based on the
"Miami-Ft. Lauderdale MSA, FL. All Items Index" as reported by the United States
Bureau of Labor Statistics, which from time to time shall be applied uniformly to all rates
for this rate classification of bulk potable water service.
"Customers" means the CITY'S potable water customers situate in the subject
geographic service area and who purchase the subject water from the CITY.
"Days" means calendar days unless otherwise specified.
"District Board" means the Board of County Commissioners, Collier County,
Florida, as the Ex-Officio Governing Board of the Collier County Water-Sewer District.
"DISTRICT System" means the potable water system that serves the DISTRICT
and will deliver the subject bulk potable water the CITY Service Area pursuant to this
Agreement.
"Equivalent Residential Connection (ERC)" means, with regard to water
service, the equivalent gallonage usage requirements of a single-family residential
customer. For these purposes, each ERC will have an assigned value of 1.0. The ERC
gallonage is and shall continue to be based upon statistical data accepted by the
DISTRICT establishing an average residential use, and it is recognized that the usage
for some types of residential units may be greater or smaller than the average ERC
gallonage assumed for this calculation; Also the ERC may change from time-to-time
based upon the rates calculated in the DISTRICT'S then most recent Impact Fee Study.
As of the effective date of this Agreement an ERC equals 350 gallons per twenty-four
(24) hour day.
Packet Page-3417- 3
9/9/2014 17.D.
"Excess Flow" means all metered potable water deliveries at the Point of
Delivery expressed in gallons, received during a Billing Period by the CITY from the
DISTRICT that exceeds the then Contracted Capacity for the applicable Billing Period.
"Fiscal Year" means the twelve month period beginning October 1st and ending
September 30th.
"Force Majeure" shall include, but not be limited to, acts of God, strikes,
lockouts, or other industrial disturbances, acts of any public enemy, wars, blockades,
riots, acts of armed forces, epidemics, delays by carriers, inability to obtain materials or
rights-of-way on reasonable terms, acts or failures to act by public authorities not under
the control of either party to this Agreement, or acts or failures to act by regulatory
authorities.
"GPD" means "gallons per day."
"Maximum Month Daily Flow" or "MMDF" means the Maximum Monthly Flow
divided by the number of days for that period of time expressed in days corresponding
to such quantity of water delivered for which the Maximum Monthly Flow was
measured.
"Maximum Monthly Flow" means the highest total potable water use metered
at the Point of Delivery for the number of days reflected in any calendar month during
the respective calendar year.
"MGD" means "million gallons per day."
"Point of Delivery" means that geographic point, as identified on sheet of
the design plans attached hereto as Exhibit A, where the CITY'S System shall be
physically connected to the DISTRICT System for the purpose of delivering the subject
bulk potable water to the CITY'S System.
"Price Index" means the index used by the DISTRICT to adjust its Water
Service Commodity Charges to account for inflationary effects of the DISTRICT'S costs
of providing potable water service, to avoid expenses of frequent detailed Water
Service Commodity Charge rate evaluations.
"Transmission Facilities" means those utility facilities, including but not limited
to, water mains, valves, continuous read out telemetry, meters, and appurtenant
facilities, used directly or indirectly throughout the term of this Agreement to connect the �.
CITY'S System to the DISTRICT'S System at the Point of Delivery, as shown on Exhibit
Packet Page-3418- 4
9/9/2014 17.D.
A attached hereto.
"Water System Capacity Fees" means the capacity or impact fees expressed
on a "per gallon of capacity reserved basis" adopted from time to time by the DISTRICT
which shall be charged by the DISTRICT to the CITY to reserve potable water capacity
from the DISTRICT'S System.
SECTION 3. CITY CONNECTION AND POINT OF DELIVERY.
3.1. The CITY shall design and construct all Connection Facilities within the
CITY'S System that are necessary to receive the subject bulk potable
water from the DISTRICT at the Point of Delivery. The construction of
the Connection Facilities as identified on Exhibit C shall be the
responsibility of the CITY and such Connection Facilities shall remain
the property of the CITY.
3.2. The CITY, at no cost to the DISTRICT, shall obtain all necessary
governmental approvals, including permits, for the construction of the
Connection Facilities for the connection of the CITY'S System to the
DISTRICT System at the Point of Delivery. The design of the
Connection Facilities is the sole responsibility of the CITY and shall be
adequate to meet the Contractual Capacity requirements at the delivery
pressure identified in this Agreement.
3.3. The CITY will construct the Point of Delivery in accordance with the then
current Collier County Utilities Standards and Procedures Ordinance
and the then current Utilities Standards and Procedures Manual, which
shall include, but not necessarily limited to, isolation valves, backflow
prevention device, by-pass, and a potable water master meter for the
purposes of determining the amount of Potable Water Services being
provided to the CITY by the DISTRICT pursuant to this Agreement. The
CITY will be responsible for the design, construction, and testing of all
facilities comprising the Point of Delivery and will convey title to all of the
same to the DISTRICT in accordance with the County's Utilities
Standards and Procedures Ordinance. Upon execution of this
Agreement, the CITY will immediately initiate the design and
Packet Page-3419- 5
9/9/2014 17.D.
construction of the facilities comprising the Point of Delivery and will
have such facilities placed into service within three hundred (300) days
after execution of this Agreement. The CITY shall pay for all costs of
the construction of the Point of Delivery. The CITY shall be responsible
for constructing the Connection Facilities and connecting the City
System to the District System at the Point of Delivery. The DISTRICT
shall have the right to inspect the connection of the CITY Connection
Facilities at the Point of Delivery prior to providing the subject Water
Service to the CITY in accordance with this Agreement. Upon
conveyance of the facilities constituting the Point of Delivery to the
DISTRICT, the DISTRICT shall own, operate and maintain such
facilities.
3.4. The receipt of Bulk Water Service pursuant to this Agreement shall
commence when the Connection Facilities and the facilities constituting
the Point of Delivery have been constructed and placed into service by
the respective Parties, and the CITY has paid in full for the amount of
Contracted Capacity as specified in this Agreement.
SECTION 4. METERING OF SERVICE.
4.1 All potable water delivered to the CITY by the DISTRICT under this
Agreement shall be measured at the Point of Delivery by meter equipment
of standard manufacture.
4.2 The quantity of potable water delivered to the CITY shall be determined
based on meter readings calculated based on the difference in quantity
registered from the previous meter reading, said meter reading being
made by the DISTRICT. The CITY can have a representative present at
each time the meter is read; notification being provided by the CITY to the
DISTRICT of the request to be present at the meter read forty-eight (48)
hours in advance of such meter reading by the DISTRICT.
4.3 The DISTRICT will attempt to read the meter on the same day that other
meters in that billing cycle are read nearby to the City's Service Area to
Packet Page-3420- 6
9/9/2014 17.D.
have each such Billing Period of approximately thirty (30) da
recognizing holidays, weekends, and Force Majeure incidents may affE
the timing of such meter readings.
4.4 The DISTRICT will test and calibrate the meter for service at the Point of
Delivery once every six (6) months, which will be a cost of the DISTRICT
borne by all customers of the DISTRICT. The CITY may install additional
metering equipment on its side of the Point of Delivery, to serve as a
check meter, which additional metering equipment will be owned,
repaired, maintained and, if necessarily replaced, by the CITY. The
DISTRICT'S meter will serve as the basis for the determination of potable
water delivered at the Point of Delivery for the evaluation of Contracted
Capacity utilization and commodity service billing purposes.
4.5 At the request of the CITY, the DISTRICT within thirty (30) days of
receiving said request shall provide the CITY with a certified copy of the
meter calibration report of the subject Water Service meter at the Point
of Delivery. Should the calibration result in finding the meter inaccurate,
the DISTRICT will as soon as possible repair or replace the meter so
that meter's measurement will be accurate. For purposes of billing
charges based on the metered flow, the amount billed during the period
that the meter was determined to be inaccurate shall be the average of
the prior twelve (12) monthly meter readings. If twelve consecutive
monthly readings are not available, then the adjustment to correct the
inaccuracy will be made promptly after twelve (12) months of accurate
historical readings become available.
SECTION 5. RESERVATION OF POTABLE WATER CAPACITY.
5.1. The CITY will receive an allocation of the Water Capacity from the
DISTRICT for its resale pursuant to this Agreement upon the payment of
Water System Capacity Charges in full to the DISTRICT. The CITY shall
have an exclusive right to resale the Contracted Capacity as specified in
Packet Page-3421- 7
9/9/2014 17.D.
this Agreement. The CITY will have an entitlement to the Conti
Capacity. The CITY will not be responsible for operation, mainten
repair or replacement of any facilities owned by the DISTRICT.
5.2. 1. Coincident with the execution of this Agreement, the CITY agrees
to reserve Contracted Capacity from the DISTRICT as stated on Exhibit
D, Section 1. This reservation is referred to as the "Initial Contracted
Capacity" and will be vested in the CITY only upon payment in full to the
DISTRICT of the applicable Water System Capacity Fees. The CITY will
pay the DISTRICT based on the Initial Contracted Capacity and the
current Water System Capacity Fee as stated in Section 2 on Exhibit D.
2. At such time as the CITY may determine its need to purchase
additional potable water Contracted Capacity from the DISTRICT
pursuant to this Agreement, the CITY shall provide to the DISTRICT
"Notice to Reserve Additional Potable Water Capacity" to request the
purchase of an additional increment of Contracted Capacity. The Notice
to Reserve Additional Potable Water Capacity shall include, but not be
limited to, the increment of capacity requested for reservation, and the
requested actual service date for such additional requested potable water
Contracted Capacity. If the CITY agrees to purchase additional potable
water Contracted Capacity from the DISTRICT, the CITY shall purchase
such capacity in increments of not less than 10,000 gallons per day
(GPD).
3. In no case shall the Capacity Availability bate for any additional
potable water Contracted Capacity being requested by the CITY be less
than ninety (90) days nor more than one hundred and twenty (120) from
the requested Capacity Availability date specified in the respective Notice.
Within ninety (90) days of receipt of said notice from the CITY, the
DISTRICT shall inform the CITY in writing whether the additional potable
water Contracted Capacity as requested by the CITY will be available as
Packet Page-3422- 8
9/9/2014 17.D.
of the requested Capacity Availability Date. If such potable water capacity
is determined by the DISTRICT to be available for the subject use by the
CITY pursuant to this Agreement, the CITY shall enter into an Additional
Contracted Capacity Payment Agreement and pay for such additional
Contracted Capacity (in the amount of money determined by using the
same methodology as identified in Section 5.2, and promptly thereafter
Section 1(a) in Exhibit D shall then be amended by the DISTRICT to
include such increased available Additional Contracted Capacity.
Furthermore, with respect to the CITY'S purchase of additional Contracted
Capacity, the rate for such additional capacity to be charged by the
District shall be at the then current prevailing market rates established by
the DISTRICT via Resolution in accordance with the County's then
applicable Ordinance. The amended (updated) Section 1(a) in Schedule
D will identify the then applicable total amount of revised (increased)
potable water Contracted Capacity purchased by the CITY, and the total
cost of said additional capacity. The Amended Section 1(a) to such
updated Schedule D shall thereby specify the increase in capacity above
the "Initial Contracted Capacity" as originally identified in this Agreement.
Any purchase of additional Contracted Capacity will utilize the
methodology in effect for the DISTRICT at that date of actual payment to
the DISTRICT, which may require payment in full before any such
capacity is reserved to the CITY.
4. The DISTRICT will promptly make available, upon request of the
CITY, a copy of the monthly Operating Reports which had been submitted
by the DISTRICT to the Florida Department of Environmental Protection
(FDEP) which will quantify the average daily flow or capacity use for each
individual water plant as all of the same are public records under Florida
Law.
5.3. The CITY shall pay a Water System Capacity Fee to the DISTRICT for all
potable water Contracted Capacity reserved by the CITY as set forth in
Exhibit D. The Initial Water System Capacity Fee on Exhibit D, Section 2
Packet Page-3423- 9
9/9/2014 17.D.
(b) is based on a study as prepared by the DISTRICT and shall remain in
effect until revised from time-to-time by the DISTRICT pursuant to County
Resolution as adopted by the Board of County Commissioners. The
DISTRICT may, but has no obligation to, give special notice to the CITY of
changes to the Water System Capacity Fee. The Water System Capacity
Fee will be expressed on a "per gallon of Contracted Capacity" basis and
will always be rounded to the nearest cent for billing and calculation
purposes.
5.4. The DISTRICT is named as the permit holder of the potable water
facilities required to provide the potable water Contracted Capacity as it
relates to the operation of such facilities by the FDEP and any other
regulatory agency which may have jurisdiction with respect to such
facilities. The DISTRICT at all times will attempt to operate its utility
facilities in accordance with generally accepted utility operating
procedures such that its operations should not be in violation of State
and/or Federal regulations governing the operation of the facilities with
such permit(s); and at all times the DISTRICT shall attempt to renew such
permits on a timely basis in accordance with then applicable regulations to
maintain such permit(s) in an approved active status mode. In the event
that the DISTRICT is not in compliance with the operating permits for all
facilities required to provide the Contracted Capacity to the CITY and the
DISTRICT is fined or required to implement capital or operational
improvements to such facilities as required by any regulatory agency, the
CITY will be responsible pro-rata with the DISTRICT'S other potable water
customer's costs, including penalties, if any, to the greatest extent than
allowed by law.
5.5. The District shall endeavor to deliver the subject Bulk Potable Water
Service at the Point of Delivery in accordance with the then current edition
of the DISTRICT'S Utilities Standards and Procedures Ordinance and
Manual.
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SECTION 6. RATES FOR MONTHLY USE OF CONTRACTED CAPACITY
6.1 The CITY will be responsible for the payment of all charges associated
with the monthly use of its potable water Contracted Capacity. Per this
Agreement, all potable water use will be metered at the Point of Delivery.
The rates for service as billed by the DISTRICT will be fair and reasonable
and shall reflect at least the DISTRICT'S cost of providing such Bulk
Water Service to the CITY. The CITY shall pay the DISTRICT the then
applicable Commodity Charge for all metered Bulk Water Service
delivered by the DISTRICT to the CITY at the Point of Delivery. The initial
Bulk Water Service Commodity Charge is shown on in Section 4 (b)(i) in
Schedule D, which is based on a study prepared by the DISTRICT.
Beginning on October 1st of each Fiscal Year and absent a formal review
of the Bulk Water Service rates as provided in this Agreement, the
DISTRICT will be allowed to adjust the Bulk Water Service Commodity
pot i Ix s
dened Charge fi in by this the Agreementaplicatin of. The no DISTRICT less than may the Pr notify ce the nde Ca in uch advanceIndex is
of changes in the Bulk Water Service Commodity Charge. The Bulk Water
Service Commodity Charge will be expressed on a "per thousand gallons
of metered potable water as delivered to the Point of Delivery" basis and
will always be rounded to the nearest cent for billing and rate calculation
purposes.
6.2. Nothing in this Agreement is intended, nor shall be construed, to be
inconsistent with any original Exhibit. If it is claimed that there is
inconsistency between this Agreement and any original Exhibit (or
amended Exhibit), the text of the Agreement shall control to the extent of
such conflict(s), if any. When and If any original Exhibit is amended after
the commencement date of the Agreement, the Agreement shall continue
to control over each Exhibit except to the extent, if any, the amended
Exhibit expressly states that the amendments to the respective Exhibit are
in fact acknowledged to be inconsistent with the Agreement, and the
acknowledgements expressly specifies the precise extent that the
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respective Exhibit, as then being amended, is modifying the Agreement.
For example, the respective Exhibit, as amended, must state that "This
amendment to Exhibit supersedes the Agreement only as follows:
." Whenever an Exhibit is amended, each amended Exhibit must
be re-titled and must state the effective date of the amendments such as,
for example: "First Amended Exhibit [applicable Exhibit letter' ,
effective on the day of , 200_, which supersedes the original
Exhibit [applicable Exhibit letter]."
6.3. The Bulk Water Service Commodity Charges to be billed to the CITY by
the DISTRICT will be established periodically, but not less frequently than
every three (3) years, by an independent study of the costs associated
with providing service as provided in this Agreement. Such study will be
performed concurrently with any evaluation of the retail rates of the
DISTRICT to provide consistency in the rate determination process. The
rates to be applied to the CITY shall be the same as the rates charged to
other of the DISTRICT'S customers in the same rate class.
6.4. Subject to the terms and conditions of this Agreement, the DISTRICT
shall invoice the CITY on a monthly basis in accordance with billing cycle
meter readings, calculated charges and other applicable service fees. The
invoice shall include, at a minimum, the billing period of service, the
amount of Bulk Water Service flows as metered and billed, the rates for
service, the amount of the invoice, contact person for questions regarding
the invoice, and other information deemed acceptable by the parties. The
CITY shall make payment based upon the invoice amount within thirty
(30) days after receipt of the invoice from the DISTRICT. If payment is
not received by the DISTRICT within thirty (30) days after receipt of the
invoice, the CITY shall be liable for the payment of any penalties on the
outstanding balance as established from time to time by the DISTRICT,
which penalty charges being the same as those applied to all other
customers of the DISTRICT as established by Ordinance or Resolution as
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appropriate. The charging of penalties shall not extend the due date for
any payment and any failure to pay may be considered a default under
the terms of this Agreement.
6.5. As then specified by Collier County Ordinance No. 2003-71, as hereafter
amended (or superseded by another Ordinance), or as provided in the
DISTRICT'S Special Act, the subject water service from the DISTRICT to
the CITY can be temporarily terminated when bills are delinquent for non-
payment.
6.6. If the CITY disputes the accuracy of any meter reading or billed amount, it
must in writing notify the DISTRICT of the claimed meter inaccuracy
and/or claimed billed amount within forty-five (45) days of the date on the
respective disputed billing cycle invoice. All claimed billing cycle invoice
errors not thus disputed within forty-five (45) days of receipt of each
respective invoice by the CITY shall be considered final and not subject to
dispute. However, if it is determined that the master water metered
potable water flows through the master meter were incorrectly determined
by the meter during a time period, as determined as a result of meter
testing, reimbursement based upon a claim of the master meter
inaccuracy shall not be applied further back in time than one hundred and
eighty (180) days from the date of the DISTRICT'S receipt of such master
meter error claim. If the CITY disputes an invoice for the subject Water
Service for a specific Billing Period, the CITY shall nevertheless promptly
pay in full the monetary amount billed by the DISTRICT. Unless the
DISTRICT'S staff agrees that the claimed error is self-evident or obvious
when compared to typical average usage and/or historical flows, and
therefore agrees that the invoice shall be summarily adjusted prior to the
scheduled payment date. If, after payment in full, it is subsequently
determined that the billing was in error, then the CITY shall be reimbursed
or credited by the DISTRICT, for the respective above stated time period
allowed refund (or credit) within thirty (30) days after such determination.
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6.7. In the event that the South Florida Water Management District or other
governmental unit (including the Board of County Commissioners or its
equivalent) with just cause and authority declares a water shortage, then
the DISTRICT shall have the right to restrict service to the CITY by the
same manner as the DISTRICT restricts service to all of its other
customers located within the DISTRICT potable water service territory on
a pro-rata share but will not adjust the Bulk Water Service Commodity
Charge being billed by the DISTRICT as a result of such restricted
service.
6.8. The DISTRICT hereby agrees to use its best efforts to produce, treat, and
transmit to the CITY for potable water for resale in the CITY Service Area
based on the then Contracted Capacity reservation as purchased by the
CITY and paid for in full.
6.9. The billing of the subject Bulk Water Service will commence no later than
thirty (30) days after the completion of the construction of the Point of
Delivery by the DISTRICT and the completion of the construction of the
Connection Facilities by the CITY for the amount of potable water
delivered to the CITY by the DISTRICT and will be subject to rates, fees,
and charges as provided in this Agreement. In the event that the potable
water flow requested by the CITY to serve the CITY'S Service Area as
metered at the Point of Delivery exceeds the Contracted Capacity, as
expressed on a maximum monthly flow basis for a Billing Period, the
amount of potable water flow above the Contracted Capacity is defined as
"Excess Flow" and will be subject to additional Commodity Charges. The
additional charges are being imposed upon the CITY to discourage the
CITY from using potable water capacity of the DISTRICT System that has
not been reserved by and allocated to the CITY by this Agreement. The
additional charges for the daily Excess Flow, with the exception of potable
water used for emergency purposes or circumstances beyond the control
of the CITY (at the sole discretion of the DISTRICT consistent with the
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application in other areas of the DISTRICT), shall be determined based
on the following schedule:
1. For the Excess Flow during each Billing Period that is above the
Contracted Capacity but less than 125% of the Contracted Capacity,
an Excess Flow charge equal to 115% of the DISTRICT'S then
otherwise applicable Commodity Charge shall be imposed and shall
be paid by the CITY.
2. For the Excess Flow during each Billing Period that is above 125% of
the Contracted Capacity but equal to or less than 150% of the
Contracted Capacity, an Excess Flow charge equal to 125% of the
DISTRICT'S then otherwise applicable Commodity Charge shall be
imposed and be paid by the CITY.
3. For any Excess Flow during each Billing Period that is 150% above the
Contracted Capacity, such Excess Flow above 150% of the Contracted
Capacity will be charged an Excess Flow Charge equal to 150% of the
DISTRICT'S then otherwise applicable Commodity Charge.
4. Any decision made at the sole discretion of the DISTRICT concerning
excessive potable water usage by the CITY for emergency purposes
or under circumstances not under the control of the CITY may be
appealed to the Board of County Commissioners of Collier County by
the CITY subject to the City providing the County written notice of the
Appeal within forty-five (45) days of the date of the invoice for
excessive usage by the DISTRICT to the CITY.
6.10. The CITY and the DISTRICT-will cooperate with each other in good faith
to coordinate the deliveries of the subject potable water to the Point of
Delivery so that such deliveries should not exceed the Contracted
Capacity for Bulk Water Service then being provided by the DISTRICT to
the CITY. If the CITY exceeds 150% of the Contracted Capacity of the
monthly average daily flow for three (3) consecutive months, OR four (4)
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months in any twelve (12) consecutive month period, the DISTRICT will
have the right to require the CITY to contract and pay in full for an
increase in the CITY'S Contracted Capacity in an amount sufficient to
eliminate such Excess Flow conditions. At no time during the term of this
Agreement is the DISTRICT obligated to provide Contracted Capacity in
excess of the gallonage than specified in the applicable Exhibit D.
6.11. Notwithstanding anything elsewhere in this Agreement, the DISTRICT shall
not be liable for any consequential damages, and the DISTRICT shall not
be liable for any direct damages as the result of the inability or failure to
provide to CITY Bulk Water Service pursuant to this Agreement on a
temporary, emergency or permanent basis due to Force Majeure or other
circumstances not reasonably within the control of the DISTRICT. The
DISTRICT shall use its best efforts to provide the Bulk Water Service
needed by the CITY to the then applicable Contracted Capacity per the
then applicable Exhibit D. Moreover, in the event of restrictions imposed
upon the DISTRICT by any regulatory authority or authorities, the
DISTRICT reserves the right to reduce the Contracted Capacity and the
corresponding and metered Bulk Water Service for the CITY to the extent
deemed necessary by the DISTRICT as a result of such imposed
restrictions.
6.12. With regard to the quality of potable water delivered by the DISTRICT at
the Point of Delivery, the DISTRICT will endeavor to meet all Federal,
State, and local water quality standards as imposed upon the DISTRICT
or as may be adopted by the DISTRICT in all then applicable Collier
County Ordinances and Resolutions (the "Quality Standards") during the
term of this Agreement. To the extent the quality of the potable water
delivered by the DISTRICT at the Point of Delivery does not meet the
Quality Standards, the DISTRICT will issue notice to the CITY as then
required by law. •
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6.13. If the DISTRICT System is unable to deliver potable water to the CITY
pursuant to this Agreement, the DISTRICT will attempt to notify the CITY
within twenty-four (24) hours of the DISTRICT'S inability to provide such
Water Service. The DISTRICT should attempt to notify the CITY with a
minimum of twenty-four (24) hours of advance notice of when the
DISTRICT will be able to recommence providing such Water Service to
CITY.
SECTION 7. OWNERSHIP, MAINTENANCE AND REPAIRS.
7.1. The CITY shall own and maintain in accordance with applicable laws and
regulations and prudent utility management, solely at its own expense, its
water facilities on the CITY'S side of the Point of Delivery. Following
conveyance from the CITY, The DISTRICT shall own and be responsible
for the facilities comprising the Point of Delivery.
7.2. The DISTRICT, in accordance with applicable laws and regulations, shall
own and endeavor to maintain all raw water wells, treatment facilities,
mains, lines, pumps and the other facilities necessary to treat, transport,
and deliver the subject agreed upon potable water to the CITY Service
Area at the Point of Delivery pursuant to this Agreement.
7.3. All potable water received by the CITY from the DISTRICT at the Point of
Delivery will become the responsibility of the CITY for the distribution to its
customers and users within the CITY service area as then depicted on
Exhibit B, attached hereto.
SECTION 8. NOTICES.
8.1. All notices, requests, demands or other communications hereunder shall
be in writing and shall be deemed to be properly given if hand-delivered,
mailed by certified or registered U.S. Mail, or delivered by a generally
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accepted overnight courier service, such as Federal Express or United
Parcel Service. Written notices shall be addressed as follows:
Collier County: Collier County Government
3301 East Tamiami Trail
Naples, FL., 34112
Attn: County Manager
City of Marco Island: City of Marco Island
50 Bald Eagle Drive
Marco Island, Fl., 34145
Attn: City Manager
8.2. Either party may, by notice in writing given to the other, designate any
further or different addresses to which subsequent notices, certificates or
other communications shall be sent. Any notice shall be deemed given on
the date such notice is delivered by hand or three days after the date
mailed. Each party to this Agreement shall have a continuing duty to
promptly notify the other party of any change to any of this information.
8.3. In emergency situations, it may be necessary to use more expeditious
methods of notification, including but not limited to phone calls. In those
instances, the respective party's emergency contact phone number shall
be as follows:
City of Marco Island: Manager Utility Operations
Phone (239) 825-9003
Collier County: South County Regional Water.Plant
Plant Manager
Phone (239)455-6188
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SECTION 9. TERM.
9.1. This Agreement shall continue until terminated by (a) mutual agreement of
the CITY and the DISTRICT, (b) by the CITY pursuant to Section 9.2, or
(c) by default per Section 10 herein below.
9.2. The CITY shall have the unconditional right to terminate this Agreement at
any time subject to delivering to the DISTRICT not less than one (1)
year's (365 days') advance written notice to the DISTRICT of the decision
to terminate this Agreement. Such termination shall be without any
financial or other liability whatsoever to the DISTRICT, but shall not affect
the CITY'S obligations to pay to the DISTRICT all then unpaid rates, fees
and charges or any other then unfulfilled obligations of the DISTRICT.
SECTION 10. DEFAULT.
If either Party materially fails or defaults in keeping, performing, or abiding by the terms
and provisions of this Agreement, then the non-defaulting party shall give written notice
to the defaulting party specifying the nature of the default. If the defaulting party does
not cure the Agreement provision default within forty-five (45) days after the date of the
receipt of the written notice, or upon such other longer reasonable time period to cure
as stated in specific notice, then this Agreement, at the option of the non-defaulting
party, shall be terminated. Written notice of such termination, including the effective
date of the termination, shall be delivered to the termination party to the other party.
Each Party hereto also understands that there may be defaults of law, rule and/or
regulation apart from this Agreement that as a matter of law, and if possible, must and •
shall be cured prior to forty-five (45)days of the start of such respective default. Nothing
in this Agreement shall be construed to in anyway affect any such obligation to cure.
This paragraph is not intended to replace any other legal or equitable remedies
available to the non-defaulting party under Florida law, but is in addition thereto.
Notwithstanding anything in this Agreement, any failure of the CITY to promptly deliver
timely payments to the DISTRICT shall be considered a material default under the
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terms of this Agreement without the necessity for any notice from the DISTRICT to the
CITY and such nonpayment by the CITY shall be sufficient grounds for temporary
termination of the subject Bulk Water Service from the DISTRICT to the CITY. This
provision shall not be applicable only if a specific payment is an unusual payment
(which excludes all billing cycle payments at the like) whereby the CITY, absent actual
notice to pay from the DISTRICT, would not be charged with knowledge of that unusual
and non-recurring obligation to pay.
SECTION 11. FORCE MAJEURE.
With respect to the matters contemplated by this Agreement, neither party shall be
liable or responsible to the other as a result of any injury to property or person, which
was caused by any Force Majeure event.
SECTION 12. ASSIGNMENT.
This Agreement shall inure to the benefit of and be binding upon successors or assigns
of the parties hereto. However, neither the DISTRICT nor the CITY shall assign or
otherwise transfer this Agreement (and/or any duty or obligation within this Agreement)
without the express prior written permission of the other party, which permission shall
not be unreasonably withheld. Any unauthorized attempt to assign or otherwise transfer
this Agreement and/or any party's duties or obligations hereunder shall be void ab initio.
SECTION 13. AMENDMENT.
No amendment, supplement, modification or waiver of this Agreement shall be binding
unless executed in writing by both Parties hereto. No waiver of any of the provisions of
this Agreement shall be deemed to constitute a waiver of any other provision(s) of this
Agreement, whether or not similar, unless expressly provided in writing to the other
party by the waiving party. Each such amendment, supplement, modification or waiver
of this Agreement shall be filed with the Clerk to the Board of County Commissioners
and with the City Clerk of the CITY.
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SECTION 14. INDEMNIFICATION.
To the greatest extent then permitted by law, the DISTRICT and the CITY agree to
indemnify and hold each other harmless from the negligent acts or omissions of
themselves, their officers, employees or agents.
SECTION 15. SEVERABILITY.
If any part of this Agreement is found invalid or unenforceable by any court, such
invalidity or unenforceability shall not affect the other parts of this Agreement if the
rights and obligations of the parties contained herein are not materially prejudiced and if
the intentions of the parties can continue to be effected.
SECTION 16. APPLICABLE LAW AND VENUE.
This Agreement shall be governed by, construed, controlled and interpreted according
to the laws of the State of Florida. Venue for any action or proceeding to construe or
enforce the provisions of this Agreement shall be exclusively in the Circuit Court in and
for Collier County, Florida.
SECTION 17. EXECUTION IN COUNTERPARTS.
This Agreement may be simultaneously executed in several counterparts, each of
which shall be an original and all of which shall constitute but one and the same
instrument.
SECTION 18. ENTIRE AGREEMENT.
This Agreement constitutes the entire agreement among the Parties pertaining to the
subject matter hereof, and supersedes all prior and contemporaneous agreements,
understandings, negotiations, discussions or representations, either oral or written,
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between the Parties and made with respect to the matters contained herein, and there
are no warranties, representations or other agreements among the Parties in
connection with the subject matter hereof, except as set forth herein.
SECTION 19. FILING.
Portions of this Agreement may constitute a joint exercise of power, privilege or
authority by and between the DISTRICT and the CITY and may be deemed to be an
"interlocal agreement" within the meaning of the Florida Interlocal Cooperation Act of
1969, as amended. In recognition thereof, this Agreement shall be filed with the Clerk
of the Circuit Court of Collier County and with the Clerk of the CITY.
IN WITNESS WHEREOF, the DISTRICT and the CITY have caused this
Agreement to be executed effective on the day and year first above written.
ATTEST:
DWIGHT E. BROCK, Clerk BOARD OF COUNTY COMMISSIONERS,
COLLIER COUNTY, FLORIDA,AND EX-
OFFICIO AS THE GOVERNING BOARD OF
THE COLLIER COUNTY WATER-SEWER
DISTRICT.
By.
.
uty Clerk Frank Halas, Chairman
Kt/ft ;as t qtatruan s
$f Qniture ..0111«,
Approved at to form and legal sufficiency:
Thomas C. Palmer,
Assistant County Attorney
CITY OF MARCO ISLAND, FLORIDA
BY .0"-°
City Manager
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ATTEST:
Air
City Clerk
Approved as to Form and Legal Sufficiency:
City Attorney
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•
Exhibit A
Point of Delivery
CITY staff will promptly provide the required Exhibit A to County staff after it has been
prepared by a Florida licensed engineer at the CITY'S expense.
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Exhibit B
Hammock Bay Service Area
r
R, •QLLfER BLVD.c. g(akical D
it - n
',. ' ........r. .,.
444444 ' +Y.. ^ _
Rr�
1 /i
CI c)
/ X Cn
, m0Z
fir ' > M r-
A
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Exhibit C
Connection Facilities
CITY staff will promptly provide the required Exhibit C to County staff after it has been
prepared by a Florida licensed engineer at the CITY'S expense.
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EXHIBIT D
BULK WATER SCHEDULE OF FEES AND CHARGES
1) Reservation of Contracted Capacity(as defined in Section 5.2):
a) The CITY agrees to reserve 0.179 MGD of Contract Capacity from the
DISTRICT, referred to as the Initial Contracted Capacity.
2) Water System Capacity Fees (as defined in Section 5.2):
a) The Initial Contracted Capacity will be secured by the CITY through the payment
of the Water System Capacity Fee to the DISTRICT.
b) As of the date of this agreement, the DISTRICT charges $2,760 per ERC, which
has an equivalent usage of 350 gallons per day as stated in the DISTRICT'S
Master Plans, or$7.89 per gallon.
c) The CITY will pay the DISTRICT $1,412,310 for the Initial Contracted Capacity
3) Water System Capacity Fee Adjustments
a) The Water system Capacity Fees may be adjusted by the DISTRICT by
Resolution in order to recover the costs of providing service. Notwithstanding the
ability to adjust the Water System Capacity Fees, the DISTRICT may apply a
price index rate adjustment to such rates upon the effective date established by
the Board of County Commissioners. The price index adjustment factor shall
represent the change(s)to the then applicable Index applied uniformly to all rates
for Bulk Water System Capacity Fees in effect at the time of the application of
the price index rate adjustment.
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4) Commodity Charges (as defined in Section 2):
a) All Bulk Water Service provided by the DISTRICT to the CITY shall be metered
at the Point of Delivery and shall be billed in accordance with the following
Commodity Charge schedule:
b) Commodity Charge:
(i) All metered Potable Water Flow .. $2.96 per 1,000 gallons
5) Excess Flow Charges (refer to Section 6.7):
a) In no event during any Billing Period should the metered Bulk Water Service for
any particular month which constitutes such Billing Period exceed the Contracted
Capacity. To the extent that the monthly Bulk Water Service to the City as
metered at the Point of Delivery exceeds the Contracted Capacity, the amount of
metered Bulk Water Service above the then Contracted Capacity will be
considered by the DISTRICT as Excess Flow. The DISTRICT will impose an
additional charge upon all Excess Flow for the amount of Bulk Water Service
that is greater than the Contracted Capacity based on the product of i) the
Contracted Capacity expressed on a gallons per day on a maximum month flow
basis multiplied by ii) the number of days in the Billing Period based on the
following schedule:
i) For the amount of the Excess Flow during a Billing Period above the then
Contracted Capacity but less than 125% of the Contracted Capacity, an
Excess Flow charge equal to 115% of the DISTRICT'S effective Commodity
Charge during such Billing Period shall be paid by the CITY.
ii) For the amount of the Excess Flow during a Billing Period that is above 125%
of the Contracted Capacity but equal to or less than 150% of the then
Contracted Capacity, an Excess Flow charge equal to 125% of the
DISTRICT'S effective Commodity Charge during such Billing Period shall be
paid by the CITY.
iii) For the amount of the Excess Flow during a Billing Period that is above 150%
of the then Contracted Capacity, an Excess Flow charge equal to 150% of
the DISTRICT'S effective Commodity Charge during such Billing Period shall
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be paid by the CITY.
Commodity Charge Adjustments
a) The Water Service Commodity Charges may be adjusted by the DISTRICT by
Resolution in order to recover not less than the costs of providing service.
Notwithstanding the ability to adjust the Water Service Commodity Charges, the
DISTRICT may apply a price index rate adjustment to such rates annually
effective each October 1. The price index adjustment factor shall represent the
change in the Miami-Ft. Lauderdale MSA, FL, All Items Index as reported by the
United States Bureau of Labor Statistics, or such other adjustment formula as
the DISTRICT may then be applying uniformly to Bulk Water Service Commodity
Charges that may be in effect at the time of the application of the price index rate
adjustment.
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•
•
•
•
24D 11 Wednesday,August 27,2014 NAPLES DAILY NEW S
NOTICE OF MEETING NOTICE OF MEETING •
NOTICE OF PUBLIC HEARING TO,CONSIDER RESOLUTION
Notice is hereby given that on Tuesday,September 9,2014 in the Boardroom, 3rd
Floor, Administration Building, Collier County Government Center, 3299 Tamiami
Trail East, Naples, Florida the Board of County Commissioners, as Ex Officio the
Governing Board of the Collier County Water Sewer District, will consider the
.enactment of a County Resolution. The meeting will commence at 9:00 A.M. The
title of the proposed Resolution is as follows: .
A RESOLUTION OF THE .BOARD OF COUNTY COMMISSIONERS OF COWER
COUNTY, FLORIDA, AS THE GOVERNING BODY OF COLLIER COUNTY AND AS EX
GOVERNING
COWER WATER-SEWER E DIS RICT, ADJUSTING FC NTY DISTRICTSEWER
BULK
SERVICES WATER`RATES WITHIN THE HAMMOCK BAY SERVICE AREA, AS �\
AUTHORIZED BY THE POTABLE WATER BULK SERVICES AGREEMENT BETWEEN
THE COLLIER COUNTY WATER-SEWER DISTRICT AND THE CITY OF MARCO ISLAND,
DATED MAY 9,2006.
Copies of the proposed Resolution-are on file with the Clerk to the Board and are •
available for inspection. All interested parties are invited to attend and be heard.
NOTE All Persons wishing to speak on any agenda item must register with the
County Administrator prior to presentation of the agenda item to be addressed.
Individual speakers will be limited to 3 minutes on any item. The selection of an
individual to speak on behalf of an, organization or group is encouraged. If
recognized by the Chair, a spokesperson for a group or organization may be
allotted 10 minutes to speak on an item.
Persons wishing to have written or graphic materials included in the Board agenda
packets must submit said material a minimum of 3 weeks prior to the respective
public hearing. In any case, written materials intended to be considered by the
Board shall be submitted to the appropriate County staff a minimum of seven days
prior to the public hearing. All material used in presentations before the Board
will become a permanent part of the record.
•
Any person who decides to appeal a decision of the Board will need a record of the
• proceedings pertaining thereto and therefore, may need to ensure that a verbatim
record of the proceedings is made, which record includes the testimony and
evidence upon which the appeal is based.
•
If you are a person with a disability who needs any accommodation in order to
participate in this proceeding, you are entitled, at no cost to you to the provision
of certain assistance. Please contact the Collier County Facilities Management
Department, located at 3335 Tamiami Trail East, Suite 101, Naples, Florida 34112-
5356, (239) 252-8380, at least two days.prior to the meeting. Assisted listening
devices for the hearing impaired are available in the Board of County Commission-
ers Office.
BOARD OF COUNTY COMMISSIONERS •
EX'OFFICIO'THE GOVERNING BOARD •
OF THE WATER SEWER DISTRICT " -
COLLIER COUNTY,FLORIDA •
TOM HENNING,CHAIRMAN
DWIGHT.E.BROCK,CLERK •
•
By:-Martha Vergara,Deputy Clerk
(SEAL)
• Auaust 27 2014 • No 203237
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