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Home My WebLink About1998 06 08 Public Hearings Item A . (:OMMISSION AGENDA ITEM A CONSENT INFORMATIONAL PUBLIC HEARING X REGULAR June 8, 1998 Meeting MGR~fI\IDEPT J~ Authorization REQUEST: Utility Department Requesting Approval of the Sec~nd Reading of Ordinauce #702 Updating the Potable Water IrrigiO,tion Rates PURPOSE: The purpose of this Board item is to authorize the second reading of Ordinance #702 which modifies the potable water irrigation rates for large users as well as policies and procedures relating to billing, payment, and delinquency procedures, deposit and application fees, and stormwater deposit requirements. CONSIDERATIONS: This ordinance is needed to correct inequities between large and small irrigation users created by the implementation of the water conservation rates adopted in 1996. In addition, it was desirable to review several policies and procedures which needed to be improved. A workshop was held on March 30, 1998 to review the recommendations of the consultant hired to perform this work, Public Resources Management Group. Additional information was requested at the workshop regarding the level of rates charged and whether there should be a prior year adjustment for irrigation customers with 2" irrigation meters. Mr. Ori's response letter is attached and we concur with his recommendations as follows: a. Adopt the proposed rates included in Ordinance #702 to attenuate the rate shDck for the large irrigation users, and b. Not to retroactively apply credits for this rate change. ~.~_.~ -' :. June 8, 1998 Public Hearing Agenda Item A Page 2 ISSUE ANALYSIS: The rates proposed in ordinance #702 corrects the inequity between master metered irrigation customers and individually metered irrigation service. The block rates adopted in 1996 were developed for 2" and smaller irrigation meters. The master irrigation meters only were installed for developments which had reclaimed water systems which needed an interim connection to the potable water system until reclaimed was available. A comparison ofthe proposed rates in Ordinance #702 versus the alternative rates considered at the workshop is attached in the PRMG April 24, 1998 letter. The rate shock increases approximately an additional 50% ifthe alternative rates are adopted. A more detailed review of the issues considered in the rate analysis and customer service review are included in the August 13, 1997 PRMG report which is also attached. A summary ofthe comparison of the different rates is as follows; Usage Charge (per 1,000 gallons) Current Proposed 0-5,000 $0.91 $0.91 5,001 -10,000 $0.91 $0.91 lO,001 - 15,000 $0.91 $1.25 ]5,001 - 20,000 $0.91 $1.50 20,001 - 25,000 $0.91 $1.75 25,001 - 30,000 $0.91 $2.00 Above 30,000 $0.91 $2.50 Alternative $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 $2.50 If the alternativl~ rate is chosen, the rate table would be replaced under the General Irrigation Meter Service of Sec. 19-102 of Ordinance #702. FUNDING: No fund.ing is needed at this time. The adoption of Ordinance #702 could generate additional water revenues of $150,000 to $200,000 per year. However, there .;,~- --=- June 8, 1998 Public Hearing Item A Page 3 will be a net decrease of revenues when these systems connect to the reclaimed water system and the ERC factors are applied to the other irrigation meters. RECOMMENDATION: It is recommended that the second reading of Ordinance #702 be approved which modifies the potable water irrigation rates for large users as well as policies and proc.edures relating to billing, payment, and delinquency procedures, deposit and application fees, and stormwater deposit requirements. IMPLEMENTATION SCHEDULE: The rates are scheduled to be implemented beginning with the July 1, 1998 billing cycle. The subdivisions of Howell Creek Reserve, Eagles Watch, and Grand Reserve were notified by certified mail of the proposed rate changes. ATTACHMENTS: 1. Ordinance #702 2. PRMG Workshop Response COMMISSION ACTION: ORDINANCE NO. 702 AN ORDINANCE OF THE CITY OF WINTER SPRINGS, FLORIDA, AMENDING SEe. 19-97 BILLING, PAYMENT, DELINQUENCY, SEC. 19-98 APPEALS, SEe. 19-99 ANNUAL RATE REVIEW, SEC. 19-100 APPLICATION REQUIREMENTS, SEC. 19-101 OFFICE HOURS, SEe. 19-102(1) USER CHARGE SCHEDULE, MONTHLY WATER SERVICE RATES, SEC. 19-102(6) USER CHARGE SCHEDULE, WSCELLANEOUS CHARGES, AND SEC. 19-165(e) BILLING, PAYMENT, PENALTIES AND ENFORCEIvIENT, GENERAL OF ARTICLE II, CHAPTER 19, DN. 4 RATES, FEES AND CHARGES; AND ARTICLE V, CHAPTER 19, STORMW ATER MANAGEIvIENT UTILITY PROVIDING FOR SEVERABILITY, CONFLICTS AND EFFECTIVE DATE. VlHEREAS, the City Commission of the City of Winter Springs, Florida, has determined it to be in the best interest of the safety, health, and welfare of the citizens of the City of Winter Springs to provide for the adoption of Rates, Fees and Charges relating to water and wastewater and V/HEREAS, it is necessary to update these Codes from time to time. NOW THEREFORE, BE IT ORDAINED BY THE CITY COM:MISSION OF THE CITY OF WINTER SPRINGS, FLORIDA: - SECTION I That Sec. 19-97 Billing, payment, delinquency, is hereby deleted in its entirety, and the following replaced therefore; Sec. 19-~17. Billing, payment, delinquency. Users of the water and wastewater system shall be billed monthly and payment shall be due when rendered. If payment is not received by the City in full within twenty (20) days from the date of mailing, the unpaid amount is to be considered to be in arrears and shall be considered delinquent. If there is an arrearage amount due when the next monthly bill is printed, a late fee will be assessed at the rate of five percent (5%) per month on the arrearage amount or five dollars ($5.00), whichever amount is greater. The customer shall be notified of the delinquent amount along with the late fee charges by reference in the next months billing or specifie notification as considered necessary by the City Manager or his designee. If the entire bill is not paid in full within ten (10) days from the date of mailing of the second bill, service shall be discontinued. A fee of twenty dollars ($20.00) shall be assessed to reinstate service, and a fee of thirty dollars ($30.00) shall be assessed for reinstallment of a meter if removed for nonpayment or unable to lock-off. A fee of twenty dollars ($20.00) shall be assessed for each check returned for insu:55.cient funds or closed account. Any customer who has two (2) returned checks within a six-month period will be required to make payment in cash or money order. SECTION II That Sec. 19-98. Appeals is hereby deleted in its entirety, and the f<?llowing replaced therejbre; Sec. 19-9:B Appeals. (a) Any user who feels their monthly bill for water and sewer service is unjust and inequitable may make written application to the City Manager or his designee requesting a review of their monthly bill within ten (10) days after the date of rendering the bill by the City. The written request shall, at a minimum, show the basis of the adjustment, including the actual or estimated average flow of the water and sewer use in comparison to the amount upon which the charge is based and include a statement explaining the methods used in calculating the measurements or estimatl~s for the appeal. (b) The City Manager or his designee shall review the request and, if substantiated, the monthly bill for that user shall be recomputed based on the revised flow data and the new charge shall be adjusted on the next bill. The decision of the city manager may be appealed to the City Commission whose decision shall be final and binding. SECTION III That Sec. 19-99(b). Annual Rate Review is hereby deleted in its entirety, and the following replaced therefore; Sec. 19-9~' Annual Rate Review. (b) The city shall notify each user at least annually of the rate being charged for operation, and maintenance, and replacement including debt service and depreciation of the water and sewer utility system. SECTION N That Sec. 19-100(b)(1). Application Requirements, Residential Users is revised by the following; Sec. 19-100 Application Requirements. (b)(I) Residential users .....The deposit fee shall accrue interest at a rate not to exceed six (6) percent per annum as determined periodically by the City Manager or his designee, and shall be paid annually by the appllcant Upon completion.....six (6) months or less. The residential deposits will be based on the services provided by the City to such residence. The following deposit schedujle shall apply: Residential Deposit Amount (*) Water only Service $25.00 Sewer Only Service $65.00 Water and, Sewer Service $90.00 (*) Reflects deposit for water and wastewater service only; other deposits for services billed on the utility bill, if any, are in addition to the above-referenced deposits. An inspection fee shall be assessed at application and for each connection when applicable; refer to miscellaneous charges, section 19-102(5)c. SECTION V That Sec. 19-100(b)(2). Application Requirements, Nonresidential users. is revised by the following; (b)(2) Nonresidential users. ...The deposit fee shall accrue interest at a rate not to exceed six (6) percent per annum as det,ermined by the City Manager or his designee, and shall be paid annually to the applicant. The deposit shall be held for the term of service. When service is terminated, the deposit plus interest less any outstanding fees and charges shall be refunded to the user. There will be no interest refunded Oll any account in service six (6) months or less. The deposit shall be equal to two (2) times the average monthly bill for service as determined by the City Manager or his designee, but in no event shall the deposit be less than $200.00. SECTION VI That Sec. 19-10 I. Office Hours is revised by the following; Sec. 19-101 Office Hours. (a) The business office is located at 1126 East State Road 434, Winter Springs, Florida. It is open SECTION VII That Sec. 19'-102(1) User charge schedule, general, monthly water service rates is hereby deleted in its entirety, and the following replaced therefore: Sec. 19-102. User charge schedule, general. The following rates and charges shall apply to all systems unless otherwise specifically stated: 1. Monthly water service rates. The monthly water rate shall include the sum of the base facility charge plus a volume charge per one thousand (1,000) gallons or a fraction thereof of metered water consumption as set forth below: Monthly Charge Individually Metered Residential Service: Base Facility Charge All meter s,izes......... ............ ............ ...................... .$3 .58 Charge per Thousand (1.000) Gallons Volume Charge - Domestic Service (gallons) 0-10,000 .................. ...................... ..................... ....$0.91 10,001-15,000..........................................................1.25 15,001- 20,000 ........................................................ ..1.5 0 20,001-25,000 ............... ................. ........ ................ ..1. 7 5 25,001- 30,000 ..........................................................2. 00 Over 30,000... ...... .... ................................................ .2.50 Volume Charge - Irrigation Service (gallons) [*] 0-5,000 ...... ............ .............. ................................ ...$1.25 5,001-10,000 .......................................................... ..1. 5 0 1 0,001-15,000 ......................................................... .1. 7 5 15,001-20,000 ........................ ......... ...... .... .............. .2. 00 Over 20,000.......... ..... ....... ....... .................... ........... ..2.50 [*] Reflects water use for residential irrigation service which is metered in addition -to domestic service from a single service connection to water system. For those customers which receive dual metered service from a single service connection, the Base Facility Charge will only be applied to Domestic Service (one charge per service connection). ERC Factor Monthly Charge Master Metered Re:ddential and Non Residential Service: Base Facility Charge (meter size) 5/8 x 3/4 and 3/4 inch..................... 1.0 ..................$3.58 1 inch... ................ ............. ....... ........2.5 ... ............... ..8.94 1 1/2 inch.."..................................... 5.0..................17.89 2 inch... ........................ ......... .......... 8.0................. .28.62 3 inch... ..................... ..................... 16.0..... ....... ......57 .23 4 inch.. ............................. ..... ........ 25.0................. .89.50 6 inch............................................. 50.0................178.85 Volume Charge - Domestic Service per 1,000 gallons..0.91 Volume Charge - Irrigation Service per ERC (gallons) [*] 0-5,000 ........................................ ........ ..... ............ ...$1.25 5,001-10,000 ... ....... ........ ....... ...... ...... ........ ......... ......1.50 10,001-15,000 ........ .............. ........ ....... ............ .........1. 75 15,001-20,000 ......................................................... .2. 00 Over 20,000............................................................. .2.50 [*] For those customers which receive both individually metered domestic and irrigation service from a single service connection, the Base Facility Charge will only be applied to Domestic Service (one charge per service connection). ERC Factor Monthly Charge General Irrigation l~eter Service: [*] Base Facility Charge (meter size) 5/8 x 3/4 and 3/4 inch..................... 1.0..................$3.58 I inch.............................................. 2.5 ....................8.94 1 1/2 inch............. .............. ............. 5.0............... ...17.89 2 inch........ ...................................... 8.0..................28.62 3 inch............ ...... ........ ....... ...... ..... 16.0... ........... ....57 .23 4 inch.... ......... ........ .......................25.0.................. 89 .50 6 inch............................................ 50.0 ................178.85 Charge per Thousand (1.000) Gallons Volume Chargl:: per ERC 0-10,000 .... ........................ ......................... ........... .$0.91 1 0,001-15,000 .......................................................... 1.25 15,00 1-20,000 ........................................................ ..1. 5 0 20,001-25,000 ....... ..... ......... ......... ......... ................. ..1. 75 25,001-30,000 ................. ...... ......... ...... .................. ..2. 00 Over 30,000.................. ... .................... ...... .............. .2.50 [*] Reflects water use for irrigation service which is metered from a separate and distinct service connection to the water system. The base facility charge is the minimum monthly charge applied in each account and will not be assessed if the service is discontinued. SECTION VITI That Sec. 19-102(6) User charge schedule, general, miscellaneous charges is revised as follows; Sec. 19-102 User charge schedule, general. (6) Miscellaneous Charges: a. Reinstatement fee... $20.00 b. Fee or charge.". $50.00 c. Inspection fee... d. Fee for all checks returned... e. Application fee f. Reinstallation.... g. Pretreatment..".. h. Capacity ..... i. Television.... $20.00 $20.00 $15.00 $25.00 SECTION IX That Sec. 19-165. Billing, payment, penalties and enforcement of Article V. Stormwater Management Utility is revised as follows; Sec. 19-165. Billing, payment, penalties and enforcement ( e) The owner of developed property that is not served by City water and sewer shall not be required to pay the city a stormwater management utility fee deposit. SECTION X - CONFLICTS. All ordinances or parts of ordinances in conflict herewith being the same are hereby repealed. SECTION XI - SEVERABILITY. If any section or portion of a section or subsection of this ordinance proves to be invalid, unlawful or unconstitutional it shall not be held to invalidate or impair the validity, force or effect of any other section or portion of section or subsection or part of this Ordinance. SECTION XII - EFFECTIVE DATE. This ordinance shall become effective immediately upon its passage and adoption. CITY OF WINTER SPRINGS, FLORIDA ( A~ ~~,-,L CTrY CLERK }--- First Reading MAY 11, 1998 Posted MAY 28, 1998 Second Reading and Public Hearing JUNE 8, 1998