Agenda 02/08/2011 Item # 8C
2/8/2011 Item 8.C.
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 Collier County Water-Sewer District
and The City of Marco Island, dated May 9, 2006.
OBJECTIVE: That the Board of County Commissioners adopts 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,
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 "Potable Water Bulk Services Agreement between the
Collier County Water-Sewer District and The City of Marco Island" dated May 9, 2006
(Agreement), the City receives treated potable water from the District for resale.
~
The initial wholesale water service rate of $2.96 per 1,000 gallons was established by the
Agreement pursuant to an evaluation perfonned by Public Resources Management Group, Inc.
(Consultant). The terms of the Agreement allow the District to annually adjust the rate by the
change in the Miami - Ft. Lauderdale MSA, FL All Items Index as reported by the U.S. Bureau
of Labor Statistics. The current rate of $3.31 per 1,000 gallons for the Hammock Bay Service
Area, which became effective on October 1, 2010, reflects the annual application of the indexing
provision each year since 2006.
The proposed rate change is fair and reasonable and reflects the District's cost of providing bulk
service to the Hammock Bay Service Area.
The District requested that the Consultant prepare an updated analysis of the cost and
corresponding rates to provide water service to the City which is presented in this report. The
report outlines the methodology employed, analyses and assumptions used, and the results of the
evaluation.
As set forth in the attached letter, the Consultant calculates and the staff recommends that the
bulk water service rate be increased from $3.31 per 1,000 gallons to $3.54 per 1,000 gallons
effective October 1, 2011. Effective October 1, 2012, staff recommends that the bulk water rate
be increased to $3.64 per 1,000 gallons.
.--
Staff reviewed PRMG's Bulk Services Water rate study with the Productivity Committee on
November 17, December 15, 2010, and on January 19. 2011. The Productivity Committee
appointed a sub-committee to review the studies. Since the focus of the sub-committee was on
the rate and impact fee studies of the water-sewer district only, it chose to make no
recommendations, but accepted the methodology in concept. The in depth review of the user
rate study provided the committee with the comfort in the methodology used in this study. Please
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2/8/2011 Item 8.C.
see Attachment I for a copy of the timetable of all interactions with stakeholders. A copy of the
study is available in the County Manager's Office.
FISCAL IMPACT: The revised rate will provide approximately $15.000 in additional revenue
in Collier County Water-Sewer District Operating Fund No. 408 for Fiscal Year 2012.
LEGAL CONSIDERATIONS: Exhibit D to the Agreement allows the Water-Sewer District to
adjust the bulk service water rates by Resolution. The proposed Resolution has been approved
for form and legal sufficiency. This action requires a simple majority vote. JBW
GROWTH MANAGEMENT IMPACT: The proposed bulk service water rate is designed to
provide funding for operation and maintenance, repair and replacement costs.
RECOMMENDATION: That tbe Board of County Commissioners adopts 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,
Prepared by: Tom Wi des, Operations Support Director, Public Utilities Division
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2/8/2011 Item 8.C.
COLLIER COUNTY
Board of County Commissioners
Item Number: 8.C.
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: 2/8/2011
Prepared By
Name: SridharBala
Title: Management/Budget Analyst, Senior,Utilities Finane
1/1812011 10:20:01 AM
Submitted by
Title: Management/Budget Analyst, Senior,Utilities Financ
Name: SridharBala
1/18/2011 ]0:20:03 AM
Approved By
Name: HapkeMargie
Title: VALUE MISSING
Date: 1/20/2011 I :58:07 PM
Name: Joseph Bellone
Title: Manager - Utility Billing & Cust Serv.,Utilities Finance Operations
Date: 1/21/2011 4:27:14 PM
Name: WidesTom
Title: Director - Operations Support - PUD,Utilities Fina
Date: 1/23/20] 1 3:57:44 PM
Name: WhiteJennifer
Title: Assistant County Attorney,County Attorney
Date: 1/24/2011 1 :43:30 PM
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2/8/2011 Item 8.C.
Name: DeLonyJim
Title: Administrator - Public Utilities,
Date: 1/25/20] 1 8:07:54 PM
Name: GreenwaldRandy
Title: Management/Budget Analyst,Office of Management & B
Date: 1/27/201111:55:17 AM
Name: KlatzkowJeff
Title: County Attorney,
Date: 1/27/2011 4: 1 6:53 PM
Name: OchsLeo
Title: County Manager
Date: 1/30/20112:40:13 PM
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2/8/2011 Item 8.C.
In
Public Resources Management Group, Inc.
CItilil.V. RafL', Finaneiof (jlld Alanagel/lct/! C'0t1S11!!alJts
December IS, 2010
Honorable Chairman and Members of the
Board of County Commissioners
Collier County
3301 Tamiami Trail East
Naples, FL 34] 12
Subject: Wholesale Water Rate Study
Ladies and Gentlemen:
The City of Marco Island (the "City") currently receives wholesale water service for the
Hammock Bay or Marco Shores Service Area ("Hammock Bay" or "Marco Shores") from the
Collier County (the "County") Water-Sewer District (the "District") water system (the "System").
Pursuant to the "Potable Water Bulk Services Agreement Between The Collier County Water-
Sewer District And The City Of Marco Island" dated May 9, 2006 (the "Agreement"), the City
receives treated potable water from the District for resale. Based on the terms of the Agreement,
the District is not responsible for serving the retail customers located in the Marco Shores service
area. The costs associated with maintaining the water distribution and facilities for these
customers remain the responsibility of the City.
The initial wholesale water service rate of $2.96 per 1,000 gallons was established by the
Agreement pursuant to an evaluation performed by Public Resources Management Group, Inc.
(PRMG). Absent a formal review, the terms of the Agreement allow the District to annually
adjust the rate by the change in the Miami-Ft. Lauderdale MSA, FL All Items Index. The current
rate of $3.31 per 1,000 gallons, which reflects the annual application of the indexing provision
each year since 2006, became effective on October 1,2010.
The Agreement requires that the wholesale water service rate will be established periodically, but
not less frequently than every three (3) years, by an independent study of the costs associated
with providing service. The District requested that PRMG prepare an updated analysis of the
cost and corresponding rates to provide water service to the City which is presented in this
report. The report outlines the methodology employed, analyses and assumptions used, and the
results of our evaluation.
As set forth in the report, PRMG is recommending that the wholesale water service rate be
increased from $3.31 per 1,000 gallons to $3.54 per 1,000 gallons effective October I, 2011.
Effective October], 2012, we are recommending that the wholesale water rate be increased to
$3.64 per l,OOO gallons. Finally, it is also recommended that the District should reaffirm /
reevaluate the rates in Fiscal Year 2013.
K:\1125-28\Letter
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Honorable Chairman and Members of the
Board of County Commissioners
Collier County
December 15, 2010
Page 2
2/8/2011 Item 8.C.
We appreciate the opportunity to be of service to the County and would like to thank the County
staff for their assistance and cooperation during the course of this study.
Respectfully submitted,
Public Resources Management Group, Inc.
?d...JC -1 cO~.
Robert J. Ori
President
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Bryan A. Mantz
Supervising Consultant
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Shawn A. Ocasio
Rate Analyst
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2/8/2011 Item 8.C.
ATTACHMENT 1
PUBLIC UTILITIES WATER-SEWER FEE STUDY MEMORANDUM
INTRODUCTION
The intent of this memorandum is to provide documentation of the steps that staff has
completed, and remain to be completed to vet the five (5) water and wastewater related fee
studies through interested stakeholders, prior to presentation to the Board for approval on
February 8, 2011.
Specifically, the five (5) studies include:
a) Collier County Water-Sewer District (CCWSD) Impact Fee study;
b) CCWSD Water and Wastewater User Fee study;
c) Goodland Water District Rate study;
d) CCWSD Irrigation Quality (IQ) Rate study;
e) CCWSD Wholesale Water Rate Study.
CCWSD STAFF ACTIVITIES ISTAKEHOLDER ORDER)
COUNTY MANAGER
October 7,2010, staff met with the County Manager and presented the results of the
five (5) fee studies.
GOODLAND
April 20, 2010, staff met with the Goodland Homeowner's Association to discuss the
need for a 5% rate increase that would be recommended to the Board for adoption on
October 1, 2010. Staff also acknowledged that a rate study was being developed to
review the 5 year financial horizon for the Goodland District.
August 16, 2010, staff appeared before Marco Island City Council, requesting that
Council not pass the contemplated 10.5% water rate increase on to Goodland. Staff
requested Council to consider a lower percentage increase, due to the unique bulk
service provision of water to Goodland.
September 20, 2010, staff again appeared before Marco Island City Council, requesting
that Council not pass the contemplated 10.5% water rate increase on to Goodland. City
Council voted to pass the 10.5% increase to all customers, including Goodland. Staff
requested, and City Council agreed to separately evaluate the Goodland bulk service, as
part of a commissioned cost of service study for the Marco Island utility.
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2/8/2011 Item 8.C.
December 7, 2010, staff met with Commissioner Fiala to discuss the results of the
Goodland Water District Rate study, prior to a scheduled meeting with the Goodland
Homeowner's Association.
December 14, 2010, staff met with the Goodland Homeowner's Association to present
the results ofthe Goodland Rate study.
December 30, 2010, staff participated in a phone conversation initiated by Ms. Connie
Fullmer, President, Goodland Preservation Coalition. Ms. Fullmer had a number of
questions concerning the Goodland Water District, its financial condition, and the rate
study.
DSAC
November 3, 2010, staff delivered copies of the 2011 CCWSD Impact Fee to the DSAC
Committee. Staff was scheduled, and delivered an executive summary discussion to the
DSAC Committee. The DSAC provided questions to staff; some questions were
answered at the meeting, others required follow-up analysis. The DSAC took no action,
and staff was scheduled to return for the December 1, 2010 meeting.
November 22, 2010, staff responded to DSAC, reference a series of questions provided
by individual members. Staff had previously requested all questions be provided to staff
by November 19.
December 1, 2010, staff again met with the DSAC Committee to discuss the responses to
questions provided by staff on November 22. The D5AC Committee took no action;
however, provided additional questions for staff.
December 8, 2010, staff responded to DSAC, reference questions provided by individual
DSAC members at the December 1 meeting.
January 5, 2011, staff met with the DSAC Committee to answer outstanding questions,
and gain the committee's final position on the impact fee study. The DSAC voted 10 - 3
to recommend approval of the Impact Fee study results.
PRODUCTIVITY COMMITTEE
November 17, 2010, staff met with the Productivity Committee, and delivered an
executive summary discussion ofthe five (5) fee studies to the Committee for
presentation. The committee discussed the results with staff. The committee decided
not to create a sub-committee; however, agreed to provide any individual questions
back to the staff before the next meeting. One member of the committee to an
expanded version of the executive summary for individual review. No further action
was taken at the meeting.
December 15, 2010, staff met with the Productivity Committee, and was prepared to
respond to questions from the committee (no questions had been provided to staff in
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advance ofthe meeting). One committee member had reviewed the expanded version
of the executive summary. The committee member found the information difficult to
review, and suggested the need for expanded narrative to better explain the results of
the studies. It was also suggested that staff obtain outside legal review of the impact
fee study. The committee decided to create a 5 member sub-committee to review the
studies.
January 4, 2011 (week of), staff is anticipating feedback from outside counsel (Nabors
and Giblin) on the methodology, and legal sufficiency of the impact fee study. This
action was taken at the suggestion of one of the members of the Productivity
Committee.
January 19, 2011, staff met with the Productivity Sub-Committee. The sub-committee
provided questions to staff in advance of the meeting. Staff responded to the questions
prior to the meeting. During the meeting, sub-committee members and staff discussed
the responses. The sub-committee noted they would recommend that the committee
voted to recommend adoption of the studies.
January 19, 2011, immediately after the Productivity Sub-Committee meeting, staff met
with the full Productivity Committee to answer any outstanding questions, and gain the
committee's final position on the fee studies. The Productivity Committee unanimously
recommended adoption ofthe studies.
CHAMBER OF COMMERCE
November 16, 2010, staff provided a read ahead on impact fees to the Chamber of
Commerce Public Policy Committee.
November 19, 2010, staff met with the Chamber of Commerce Public Policy Committee
to discuss the Collier County Water-Sewer District (CCWSD) Impact Fees. The
committee took no action; however, positively acknowledged the work ofthe Public
Utilities staff.
January 4,2011, staff met with Chamber of Commerce Infrastructure Committee to
discuss the state of the utility. Topics included the operational, available capacity and
financial strength of the utility.
CBIA
January 4,2011 (week of), staff responded to letter of request to the County Manager
forwarded from the CBIA. Essentially, the letter requested an outline of the criteria
used to select projects for impact fee funding. This was a combined effort with the
Growth Management Division.
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2/8/2011 Item 8.C.
BOARD OF COUNTY COMMISSIONERS
February S, 2011, staff is scheduled to meet with the Board of County Commissioners to
request approval of all five (5) fee studies.
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2/8/2011 Item 8.C.
-,.,~
POTABLE WATER BULK SERVICES AGREEMENT
BETWEEN THE COLLIER COUNTY WATER-SEWER DISTRICT AND
THE CITY OF MARCO ISLAND
.rJ..
THIS AGREEMENT, is made and entered into this q~ day of (Vl,4~
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
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2/8/2011 Item 8.C.
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
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2/8/2011 Item 8.C.
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 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.
"cpr" 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 effectjve date of this Agreement an ERG equals 350 gallons per twenty-four
(24) hour day.
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2/8/2011 Item 8.C.
"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.
"Fjscal 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.
"GPO" 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
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2/8/2011 Item 8.C.
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.
3.1.
3.2.
3.3.
CITY CONNECTION AND POINT OF DELIVERY.
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.
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.
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
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2/8/2011 Item 8,C.
construction of the facilities comprising the Point of Delivery and will
have such facilities placed into seNice 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
SeNice 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 SeNice pursuant to this Agreement shall
commence when the Connection Facilities and the facilities constituting
the Point of Delivery have been constructed and placed into seNice 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 Pojnt 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 SeNice Area to
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have each such Billing Period of approximately thirty (30) do
recognizing holidays, weekends, and Force Majeure incidents may aff€.
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
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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 Date 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
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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
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(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
Charge by the application of not less than the Price Index as such Index is
defined in this Agreement. The DISTRICT may notify the CITY in advance
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 letterL,
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 8, 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, FI., 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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2/8/2011 Item 8.C.
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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2/8/2011 Item 8.C.
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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2/8/2011 Item 8.C.
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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2/8/2011 Item 8.C.
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: ~>~~_'
Frank Halas, Chairman
~
......'.. ..... '.....,'.'..
" ,~ .'.,._,
,." ....,.... ~
~""', .... .~
D~puty Clerk "
Ant<< . &I ~ Clti '''''M s
iforiatuN! ooli
,- J :;\" "
Approved at to form and legal sufficiency:
~'^" PJ~
Thomas C. Palmer,
Assistant County Attorney
CITY OF MARCO ISLAND, FLORIDA
ByL! AJ~r<J
City Manager
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2/8/2011 Item 8.C.
;;/~
City Clerk
Approved as to Form and Legal Sufficiency:
~0'd Q
City Attorney
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2/8/2011 Item 8.C.
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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2/8/2011 Item 8.C.
Exhibit B
Hammock Bay Service Area
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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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2/8/2011 Item 8.C.
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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2/8/2011 Item 8.C.
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 i1) 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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2/8/2011 Item 8.C.
RESOLUTION NO. 2011 -
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, on July 19, 2010, the District increased the rate-based on the changes in
Miami-Ft. Lauderdale - All Items CPI Index to become effective October 1, 2010 for Fiscal Year
20lJ;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 $0.23 (6.9%) effective for the Fiscal
Year 2012, and an increase of$0.1 0 (2.8%) for the Fiscal Year 2013; 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 health, safety and
welfare to accept the recommendations ofthe Consultant and staff.
NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AS THE GOVERNING BODY
Packet Page -110-
2/8/2011 Item 8.C.
OF COLLIER COUNTY AND AS EX OFFICIO THE GOVERNING BOARD OF THE
COLLIER COUNTY WATER SEWER DISTRICT, that:
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 the 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 Saturday, October I, 2011, for Fiscal Year 2012 and as of 12:01 A.M.
on Monday, October 1, 2012, for Fiscal Year 2013.
THIS RESOLUTION ADOPTED after motion; second and majority vote favoring
adoption on this the day , 2011.
ATTEST:
DWIGHT E. BROCK, CLERK
, Deputy Clerk
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
By:
By:
FRED W. COYLE, CHAIRMAN
Approval as to form
and legal Sufficiency:
\\\~~~
Jennif@B. White
Assistant County Attorney
2
Packet Page -111-
2/8/2011 Item 8.C.
EXHIBIT A
Exhibit D, Section 4) b) of the
Potable 'Vater Bulk Services Agreement Between the Collier County ''''ater-Sewer District and the City of Marco Island
Agreement Dated May 9, 2006
Existing/per Thousand Gal
Effective
10/1/2010
Commodity Charge: All metered Potable Water Flo\' $3.31
Proposed /per Thousand Gal
Effective Effective
10/112011 1011/2012
$3.54 $3.64
1/26/2011; 8:33 AM
Packet Page -112-
2/8/2011 Item 8.C.
20D · Frida" January 28, 2011 · Naples DaD, Ne..
NOTICE
NOTICE
NOTICE OF PUBLIC HEARING TO CONSIDER RESOlUTION
Notice is hereby given-that the Board of County Commissioners of Collier 'County
will hold'l public hearing on Tuesday, February 8, 201'1' In the Boardroom. 3rd
Floor, Administration Building, (oilier- Cdunty Government Center, 3299 East Ta~
miami Trail, Naples, Florida. The meeting will begin 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 OFFICIO THE
GOVERNING BOARD OF THE COLLIER COUNTY WATER SEWER DISTRICT. ADJUST-
ING THE COLLIER COUNTY WATER-SEWER DISTRICT BULK SERVICES WATER RATES
WITHIN THE HAMMOCK BAY SERVlCE AREA. AS AUTHORIZED BY THE POTABLE
WATER BULK SERVICES AGREEMENT BrnNEEN 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 tothe'Soard_and are
available for inspection. All interested parties are invited to atten~-and be geard. "'.
NOTE: All P~rsons wishing to -speak. o~ any age'oda item mu~' register with the
County Administrator prior to presentation of the agenda item t() be addressed.
Individual speakers will be limited to 3 minutes on any item. The selection of.ri in-
dividual to speak on behalf of an organization or group is encouraged; Ifrecog~
nized by the Chair, a spokesperson for a group or organization may be alloned.lO
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 he 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 il record of the
proceedings pertaining thereto and therefore, may, need to ensure that a ve~batim '
record of the proceedings is made, which record includes the testimony iJ,nd evi-
dence upon which the appeal is based. .
ff you are a person with a disability who needs any accommodation in order to par.
ticlpate in this proceeding; you are entitled, at no cost to you, to the provision oJ
certain assistance. Please contact the C,ollier County Facilities Management Depart-
ment. located at 3335 Tamiami Trail East. Suite #101. Building W, Naples, Florida
34112, (239) 252-8380.,Assisted listening devices for the hearing impaired i!re avail-
able in the County Commissioners' Office. .
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY. FLORIDA
FRED W. COYLE, CHAIRMAN
DWIGHT E. BROCK. CLERK
By; Teresa Polasld, Deputy Clerk
(SEAL) .
'~nllaru]R ]011
N~lRfu;1qR
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