HomeMy WebLinkAbout2002 06 10 Public Hearing F First Reading - Ordinance 2002-20 Utility and Stormwater Rate
COMMISSION AGENDA
ITEM F
CONSENT
INFORMA TIONAL
PUBLIC HEARING X
\
REGULAR "
June 10,2002
Meeting
MGR ;2.- IDEPT ~
Authorization
REQUEST: Utility Department Requesting the City Commission Approve the First
Reading of Ordinance 2002-20 - Utility and Stormwater Rate Ordinance
PURPOSE: The purpose of this agenda item is to adopt the first reading of Ordinance 2002-20
- Utility and Stormwater. Rate Ordinance.
CON SID ERA TIONS:
This ordinance is needed to implement adjustments to the water, sewer, reclaimed
water, and stormwater utility rates. These adjustments are based on recommendations
from our rate consultant, PRMG, who have been reviewing the City's rate structures the
last two years.
At the April 22, 2002 City Commission meeting, staff was given final direction on
the implementation ofthe IJtility and stormwater rate study. Ordinance 2002-20
incorporates those directions. The ordinance reflects the three annual increases of water
and sewer rates, increase in stormwater rate to $3,25 per month, increase in reclaimed
water rate, and the increase in the other charges discussed as well as text changes.
The ordinance was prepared by the City Attorney prepared the ordinance. The
Finance Department began placing notices on the utility bill in May to meet the 30 day
notification as required by statute.
FUNDING:
No funding is required at this time, If adopted at 2nd reading, the rates will be
effective July 1,2002.
Public Hearing Agenda Item F
June 10, 2002
Page 2
RECOMMENDA TION:
It is recommended that the City Commission adopt the first reading of
Ordinance 2002-20 - Utility and Stormwater Rate Ordinance
A TT ACHMENTS:
1. Ordinance 2002-20
2. Water, Wastewater, and Stormwater Rate Study Executive Summary
COMMISSION ACTION:
A TT ACHMENT NO. 1
j
.~
ORDINANCE NO. 2002-20
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF
WINTER SPRINGS, FLORIDA, AMENDING THE CODE OF
ORDINANCES REGARDING WATER, W ASTEW A TER, RECLAIMED
WATER, STORMW A TER RATES, FEES, AND CHARGES; AMENDING
SEe. 19-97 BILLING, PAYMENT, DELINQUENCY, SEC. 19-100
APPLICATION REQUIREMENTS, SEe. 19-102 USER CHARGE
SCHEDULE, GENERAL, SEe. 19-138 RATES AND CHARGES, AND SEC.
19-164(a) SCHEDULE OF RATES; PROVIDING FOR THE REPEAL OF
PRIOR INCONSISTENT ORDINANCES AND RESOLUTIONS;
PROVIDING FOR INCORPORATION INTO THE CODE; PROVIDING
FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, 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 the water, wastewater and reclaimed
water system; and
WHEREAS, 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 the Rates, Fees and Charges relating to the storm water management system;
and
WHEREAS, at the request of the City of Winter Springs, Public Resources Management
Group, Inc. has conducted a review of the existing water, wastewater, reclaimed water and stormwater
rates to determine the appropriateness of such rates to meet the anticipated expenditure requirements
of each respective utility division; and
WHEREAS, the Public yv'orks/Utility Director and the rate consultant, upon review of the
utilities rates and structure, recommend that a change in rates is appropriate at this time; and
WHEREAS, this Ordinance is enacted pursuant to the Florida Municipal Home Rule Powers
Act, Chapter 180, Florida Statutes, and other applicable law authorizing a municipality to set rates, fees,
and charges for public utility services; and
WHEREAS, it is in the best Interests of the public health, safety, and welfare of the citizens of
Winter Springs to amend the rates, fees, and charges for water, wastewater, reclaimed water, and
stormwater provided by the City,
NOW, THEREFORE, THE CITY COMMISSION OF THE CITY OF WINTER
SPRINGS HEREBY ORDAINS, AS FOLLOWS:
Section 1. Recitals. The foregoing recitals are hereby incorporated herein by this reference.
City of Winter Springs
Ordinance No, 2002-20
Page I of 12
."
~
Section 2. Code Amendment, Sec. 19-97. The City of Winter Springs Code, Section 19-97
is hereby amended as follows (underlined type indicates additions and strikeout type indicates
deletions):
Sec. 19-97. Billing, payment, delinquency. Users of the water andL:Qr wastewater system~
or garbage collection 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 and a
delinquent notice will be issued. If there is an arrearage amount due when the delinquent bill is
printed, a late fee will be assessed at the rate of five (5) percent 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 month's billing or
specific notification mailing of a delinquent notice as considered necessary by the City Manager
or his designee. If the entire bill if not paid in full within ten (10) days from the date of mailing
of the second bill delinquent notice, service shall be discontinued, A fee of twenty thirty dollars
($20.00) ($30,00) shall be assessed to reinstate service, and a fee of thiffy thirty-five dollars
($30.00) {$35.00) shall be assessed for reinstallment of a meter if removed for nonpayment or
unable to lock-off. A fee of twenty dollars or 5,0% of the face amount of the check. whichever
is greater, shall be assessed for each check returned for insufficient 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 3. Code Amendment, Sec. 19-100. The City of Winter Springs Code, Section 19-
100 is hereby amended as follows (underlined type indicates additions and strikeout type indicates
deletions):
Sec. 19-100. Application Requirements.
(a) All applications shall be made at the business office during office hours,
(b) Each applicant shall be required to provide information and pay fees at the time
of application.
(1) Residential users. Application shall include but not be limited to the
following information:
a. Name(s) of applicant;
b. Address for which the service is requested and the residence of the
applicant, if different; and
c, Residence telephone number of the applicant at the service address
and at the residence address, if different.
City of Winter Springs
Ordinance No. 2002-20
Page 2 of 12
A deposit fee and an application fee shall be assessed at the time of application
for service, 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 to the applicant, Upon completion of twenty-five (25)
months of service with no delinquents during the previous twenty-four (24)
months, the deposit will be refunded. The twenty-five-month time period will
commence again upon the first turn off of service for nonpayment. A new deposit
will be required to be paid by the customer upon the first time service is
discontinued after the original required deposit has been refunded. When service
is terminated, the deposit plus the interest less any outstanding fees and charges
shall be refunded to the user. There will be no interest refunded on any account
which has been in service six (6) months or less. The residential deposits will be
based on the services provided -by the city to such residence. The following deposit
schedule shall apply:
Residential Deposit Amount*
Water only service. , . . . . .
$25.00 30.00
~ 70.00
9{}..00 100.00
Sewer only service , . . . . . .
Water and sewer service . . ,
*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.
(2) Nonresidential users. Application shall include such information as the Utility
Director prescribes and that is necessary for classification, reference, and
other similar identification purposes.
A deposit fee and an application fee shall be assessed at the time of
application. The deposit fee shall accrue interest at a rate not to exceed six
(6) percent per annum as determined 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 ...-:ill
be no interest refunded on any aecount in service see (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 two hundred two hundred twenty-five dollars ($200.00)
0;225,00),
City of Winter Springs
Ordinance No, 2002-20
Page 3 of 12
An inspection fee shall be assessed at application and for each connection
when applicable; refer to miscellaneous charges, section 19-102(5)c.
Section 4. Repeal of Prior Sec. 19-102. The City of Winter Springs Code, Section 19-102
is hereby repealed in its entirety, and shall be replaced as follows (underlined type indicates new text):
Sec. 19-102, User charee schedule. eeneral.
The following rates and charges shall apply to all systems unless otherwise
specifically stated:
(1) Monthlv water selVice rates, The monthly water rate shall include the sum of
the base facility charge based on the size of the meter plus a volume charee
ger one thousand (1.000) gallons or a fraction thereof of metered water
consumption as set forth below,
Bills
Rendered
on or after
July 1. 2002
a. Individually Metered Residential SeIVice
Base Facility Charge
All meter sizes
$3,85
Bills
Rendered
on or after
July 1. 2003
Monthly Charge
$4,11
Bills
Rendered
on or after
July I, 2004
$4.39
Charge per thousand (1.000) gallons
Volume Charge -- Domestic Service (gallons)
0-10.000
10.001-15,000
15.001-20,000
20,001-25,000
25,001-30,000
Over 30.000
0,97
1.34
1.60
1.87
2,14
2,67
Volume Charge - Irrigation Service (gallons) r*l
0-5.000
5.001-10,000
10,001.15,000
15.001-20.00Q
Over 20.000
$1.34 .
1.60
1.87
2,14
2.67
1.04
1.43
1.71
2,00
2,28
2.85
$1.43
1.71
2,00
2,28
2,85
1.11
1.53
1.82
2.13
2.44
3.04
$1.53
1.82
2.13
2.44
3,04
[*1 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
City of Winter Springs
Ordinance No, 2002-20
Page 4 of 12
(one [11 charge per service connection),
Bills Rendered Bills Rendered Bills Rendered
on or after July 1, on or after on or after July
2002 July 1, 2003 1, 2004
ERC
Factor Monthly Charge
b, Master Metered Residential
and Nonresidential SeIVice
Base Facility Charge
(meter siill
5/8 x 3/4 and 3/4 inch 1.0 $3,85 $4,11 $4,39
1 inch 2.5 9.65 10.30 11.00
1 1/2 incQ 5,0 19,25 20.55 21.94
2 inch 8,0 30.80 32,88 35,10
3 inch 16,0 61.60 65,76 70,20
4 inch 25,0 96,25 102,75 109.68
6 inch 50,0 192,50 205.49 219.36
8 inch 80.0 308,00 328,80 351.20
V olume Charge -- Domestic
Service per 1,000 gallons 1.37 1.46 1.56
Volume Charge -- Irrigation
Service per ERC (gallons) r*l
0-5.000 $1.34 $1.43 $1.53
5.001-10,000 1.60 1.71 1.82
1O.001-15.00Q 1.87 2,00 2,13
15,001-20.000 2,14 2,28 2,44
Over 20,000 2,67 2.85 3.04
[*] 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),
Bills
Rendered
on or after
July 1. 2002
Bills
Rendered
on or after
July 1. 2003
Bills Rendered
on or after
July 1, 2004
ERC
Factor
Monthly Charge
c, General [mila/ion Meter SeIVice [*1
Base Facility Charge
(meter si~
5/8 x 3/4 and 3/4 inch
1.0
$3,85
$4,11
$4,39
City of Winter Springs
Ordinance No. 2002-20
Page 5 of 12
1 inch 2.5 9,65 10.30 11.00
1 1/2 inch 5,0 19,25 20.55 21.94
2 inch 8,0 30.80 32,88 35,10
3 inch 16,0 61.60 65,76 70,20
4 inch 25,0 96.25 102.75 109.68
6 inch 50,0 192,50 205.49 219.36
8 inch 80,0 308,00 328,80 351.20
Charge per thousand (1,000) gallons
Volume Charge per ERC
0-10,000 $0,97 $1.04 $1.11
10,001-15,000 1.34 1.43 1.53
15,001-20,000 1.60 1.71 1.82
20,001-25,000 1.87 2,00 2,13
25,001.30,000 2,14 2,28 2.44
Over 30,000 2,67 2,85 3,04
[*] Reflects water use for nonresidential irrigation service which is metered from a separate and
distinct service connection to the water system,
The base facility charge is the minimum monthly charR:e applied in each account
and will not be assessed if the service is discontinued.
d, A twenty-five (25) percent surcharR:e on the monthly water service rates
shall be assessed to customers located outside the City limits pursuant to
Section 180,191, Florida Statutes,
(2) Water meter chaTj!es, The water meter charR:e shall be based on the size of the meter
as follows:
Meter Size (in inches)
Meter Installation Only
$120,00
190,00
230,00
260,00
280.00
450,00
480,00
700,00
640,00
900,00
Installationffap-In
$350,00
350,00
380,00
390.00
420,00
600,00
660.00
900,00
840,00
1,100,00
5/8 x 3/4
5/8 x 3/4 remote read
5/8 x 3/4 double check
1 remote read
5/8 x 3/4 double check remote read
1 meter plus backflow prevention device
1 1/2 remote read
1 1/2 meter plus backflow prevention device
2 remote read
2 meter with sevarate double check valve
For all meters larger than two (2) inches, the meter charge shall be based upon the
actual cost of: i) the meter plus materials; ii) labor and equipment/machinery/
vehicle requirements associated with the installation; iii) an allowance for
City of Winter Springs
Ordinance No, 2002-20
Page 6 of 12
administration; and iv) other items directly related to the installation, all as
determined by the city,
(3) Monthlv sewer seJVice rates. The monthly sewer rate shall include the sum of the
base facility charge based on the size of the meter plus a volume charge per one
thousand (1.000) gallons or a fraction thereof of metered water consumption as set
forth below,
Bills
Rendered
on or after
Julv 1, 2002
Meter size (in inches)
a, All Customer Classes
Base Facility Charges
5/8 x 3/4 and 3/4
1
1 Y2
.f
~
~
Q
~
$7,10
17.75
35.50
56.80
113,60
177.50
355,00
568,00
Charge per 1.000 gallons
Individually Metered Residential
(first 10.000 gallons)
Master Metered Residential (no maximum)
Master Metered Nonresidential (no maximum)
2,77
2.77
2,77
Bills
Rendered
on or after
July 1, 2003
Base Facility Charge
$7.58
18,95
37,90
60,63
121.27
189.48
378,96
606.40
2.96
2,96
2,96
Bills
Rendered
on or after
July 1. 2004
$8,09
20,23
40.45
64,73
129.45
202,27
404.54
647.20
3,16
3,16
3.16
The base facility charge is the minimum monthly charge applied to each account
and will not be assessed if the service is discontinued,
A twenty-five (25) percent surcharge on the monthly sewer service rates shall be
assessed to customers located outside the city limits pursuant to Section 180,191.
Florida Statutes.
(4) SeJVice Availability ChaT1!es. A service availability charge shall be imposed and
levied on all development requesting water and/or wastewater capacity to provide
service to their properties and on all properties when structural charges, additions
or changes in permitted use shall result in an increase in capacity requirements
from the City's water and/or wastewater system,
a, The Service Availability Fees shall be as follows:
City of Winter Springs
Ordinance No, 2002-20
Page 7 of 12
Error! Bookmark not defined.
Water Availability Fee.,."." ,. ,.,."""", ,$1.48 per gallon
Sewer Availability Fee....................... ,$7,33 per gallon
b, The determination of the amount of capacity shall be based on a
schedule of minimum daily flows for the Residential Users:
1 and 2 bedroom apartments. multi-family
1 and 2 bedroom townhomes. multi~family
3 bedroom. multi-family
Mobile homes. single-family. per home
Single-family residential
Minimum Daily Flow
(gallons per day)
Water Sewer
300 250
300
350
350
350
250
300
250
300
c. The determination of the amount of capacity for the non-residential users
shall be based on the flow rates contained in Florida Administrative Code.
64E-6, as may be amended or renumbered from time to time, Separate
Laundry Facilities for apartments or multi-family complexes are not
included in the per unit flow rates included in (4)b above.
d. With respect to the determination of the water and wastewater service
availability fees for non-residential development. if no water and wastewater
capacity estimates are provided, the City reserves the right to estimate the
average dependable daily capacity as referenced in this section and
determine the appropriate service availability fee to be charged to such
owner or applicant.
e, The City reserves the right to review the amount of water and/or wastewater
consumption during the first eighteen (18) months of service and shall bill to the
owner or applicant any adiustment to the water and wastewater service
availability fees for capacity use in excess of amounts which have been paid by
the owner or applicant. Any additional service availability fee payments shall
be billed to the owner or applicant at the same rate that was initially billed at
time of building permit issuance,
(5) Miscellaneous charRes:
a, Reinstatement fee for turning on servIce after disconnections for
nonpayment of bill" ,$30,00
City of Winter Springs
Ordinance No. 2002-20
Page 8 of 12
b, Fee or charge for actual damages (whichever is greater) for contamination
or alteration of a water meter, line or connection,., 75.00
c, Inspection fee for each connection requested" .30,00
d, Fee for all checks returned by bank, includes checks returned for
insufficient funds or closed account.. ,20.00
e. Application fee.. ,15.00
f, Reinstallation charges for meter removed because of nonpayment or
inability to lock off" .35.00
g, Pretreatment charge, as established by the city commission by resolution,
h. Capacity reservation charge, $0.35 per sewer gallon per year.
1. Television inspection of new sewer mams and laterals installed by
contractors for acceptance by city:
1. Inspection fee usmg the city's T.V. camera and crew, per
hour., .$100,00
2. Inspector only (contractor supplies camera and crew), per
hour. . .30.00
Section S. Code Amendment, Sec. 19-138. The City of Winter Springs Code, Section 19-
138 is hereby amended as follows (underlined type indicates additions and strikeout type indicates
deletions):
Sec. 19-138. Rates and charges.
(a) A rate shall be charged to the customers on the reclaimed water system in accordance
with the following schedule:
(1) For nonmetered service for lafgef tracts of one-half (1/2) acre size or smaller, the
monthly charge shall be fi..ve eight dollars and fifty-five cents ($5,00) ($8,55).
a. As nonmetered customers of the reclaimed water system become
metered, the newly metered customer shall be subiect to the monthly
rates and charges as identified in Section 19-138(a)(3), Customer shall
be subiect to charges for metered service effective the next available
billing period subsequent to installation of the reclaimed water meter,
City of Winter Springs
Ordinance No, 2002-20
Page 9 of 12
(2) For nonmetered service for tracts greater than one-half (112) area, an additional
monthly fee of fi..:ye eight dollars and fifty-five cents ($5.00) ($8.55) for each
additional irrigated one-half (1/2) acre shall be added to the base charge of fWe
eight dollars and fifty-five cents ($5.00) ($8,55),
(3) For customers receiving metered service, the monthly charge shall be the sum
of the base charge of fi..:ye three dollars and fifty-five cents ($5.00) ($3,55), plus
a consumptive charge of twenty-five cents ($0,25) per one thousand (1,000)
gallons for usage up to twenty thousand gallons (20,000) per month and fifty
cents ($0,50) per one thousand ( 1,000) gallons for all metered reclaimed water
usage over twenty thousand gallons (20,000) per month.
(b) Metered service shall be required.\vhere peak demand is expected to exceed either five
hundred (500)/gallons per minute or fifty thousand (50,000) gallons per month, The customer
shall not be required to pay all costs associated with the purchase and installation of the meter.
The utility manager Public Works/Utility Director or their designee may waive the requirement
for a meter where a suitable alternative method exists for the calculation of the water usage and
where the customer agrees to pay the metered rate for the calculated amount of water usage.
(c) Connection to the reclaimed water system; connection charges, All connections to the
reclaimed water system shall be approved by the utility manager Public WorkslUtility Director
or their designee, The total connection charge will consist of tapping fee for the reclaimed water
service and the fee for installing a backflow prevention device on each potable water line
servicing the same tract.
Nonmetered Service Size (in inches)
BackfIow Prevention Fee
3/4 to 1 V2
2 to 8
Tapping FeeIPlus
Material
Actual Cost
$150,00 $230,00
Actual Cost
As an incentive to customers within an area of planned reuse expansion, and to
allow the city to make as many taps as possible during construction, all taps for three-
quarter-inch or one-inch selVice will be made without charge to those customers applying
for service prior to the beginning of construction.
(d) A customer whose service has been discontinued may resume reclaimed water
service after paying any past due amounts and a reconnection fee. The reconnection fee
shaH be equal to the actual cost of reconnection but in no case shaH be less than teft !hi!:!y
dollars ($10.00) .($30,00).
( e) Where service has been disconnected for a violation of an ordinance or regulation
regarding reclaimed water, such service shall not be reconnected until the City Manager
receives adequate assurance and guarantees that such a violation will not recur.
City of Winter Springs
Ordinance No, 2002-20
Page 10 of 12
Section 6. Code Amendment, Sec. 19-164(a). The City of Winter Springs Code, Section 19-
164(a) is hereby amended as follows: (underlined type indicates additions and strikeout type indicates
deletions),
(a) The stormwater management utility fee shall be adopted by resolution (the "rate
resolution") three dollars and twenty-five cents ($3,25) per ERU, and shall be calculated
for each developed property as follows:
1. The fee for residential developed property is the rate for one (1) ERU
multiplied by the number of dwelling units existing on the property. That is,
Fee = ERU X number of Dwelling Units.
2, The fee for nonresidential property is the rate for one (1) ERU multiplied
by the numerical factor. The numerical factor is obtained by dividing the
total impervious area in square feet of the nonresidential property by the
square footage for one (1) ERU as set forth in the rate resolution. The
resulting calculation is, Fee = ERU rate X (parcel impervious area
e>q)fessed in square feet/the square footage for one [1] ERU).
Section 7, Repeal of Prior Inconsistent Ordinances and Resolutions, All prior
inconsistent ordinances and resolutions adopted by the City Commission, or parts of prior ordinances
and resolutions in conflict herewith, are hereby repealed to the extent of the conflict.
Section 8, Incorporation Into Code, This ordinance shall be incorporated into the Winter
Springs City Code and any section or paragraph number or letter and any heading may be changed or
modified as necessary to effectuate the foregoing,
Section 9. Severability. If any section, subsection, sentence, clause, phrase, word or
provision of this ordinance is for any reason held invalid or unconstitutional by any court of competent
jurisdiction, whether for substantive, procedural, or any other reason, such portion shall be deemed a
separate, distinct and independent provision, and such holding shall not affect the validity of the
remaining portions of this ordinance.
Section 10. Effective Date. This Ordinance shall become effective immediately upon
adoption by the City Commission of the City of Winter Springs, Florida, and pursuant to City Charter,
ADOPTED by the City Commission of the City of Winter Springs, Florida, in a regular meeting
assembled on the _ day of , 2002,
ATTEST:
CITY OF WINTER SPRINGS, FLORIDA
City of Winter Springs
Ordinance No, 2002-20
Page 11 of 12
ANDREA LORENZO-LUACES
City Clerk
PAUL p, PARTYKA
Mayor
Approved as to legal form and sufficiency for
the City of Winter Springs only:
ANTHONY A. GARGANESE
City Attorney
First Reading
Posted
Second Reading and Public Hearing
City of Winter Springs
Ordinance No. 2002-20
Page 12 of 12
A TT ACHMENT NO. 2
CITY OF WINTER SPRINGS, FLORIDA
W ATE:R,W ASTEW ATER AND
STORMWATE,R RATE STUDY'
EXECUTIVE SUMMARY
February 2002
19
Public Resources Mana!!ement Group. Inc.
Utility, Rate, Financial and Management Consultants
EXECUTIVE SUMMARY AND RECOMMENDATIONS
General
The City of Winter Springs (the "City") is located in Seminole County (the "County") and
encompasses approximately 14,6 square miles, Based on D,S. Department of Labor estimates,
the current permanent population of the City is approximately 31,088 persons. Since the
implementation of the last rate adjustments which have occurred approximately ten years ago,
the costs allocable to the System utility operations have changed and the City has identified a
significant amount of capital improvements for the renewal, betterment upgrade and expansion
of the utility system. As a result of these changes in the expenditure requirements of the utility
and under the authority given by the City to ensure the proper recovery of costs among its utility
customers through System rates, Public Resources Management Group, Inc, (PRMG) has been
retained to perform a utility rate study and prepare a five (5) year financial projection of the
City's System. Specifically, PRMG was tasked with analyzing the revenue requirements of each
utility system, balancing the funding requirements, the conservation goals and the financial
objectives of the City, and to recommend proposed water, wastewater, and stormwater usage fees
which will meet the System's needs over the next several years,
Existing Rates
The rates and charges for the water, wastewater and stormwater utility systems are established by
the City Commission and approved by Ordinance, The existing monthly rates for water and
wastewater service include: i) a monthly service charge based on the size of the meter; ii) a
volumetric or usage charge which increases in cost based on metered water use (i,e" an inclining
block rate) to promote water conservation; and iii) for the wastewater system, a monthly
maximum billing threshold for the residential single-family and multi-family classes amounting
to 10,000 gallons of metered water consumption, With respect to the stormwater system, a flat
monthly fee is charged monthly based on the number of equivalent residential connections
(ERCs) assigned to each customer of the system, The following table below provides a summary
of the monthly rates for water, wastewater and storm water service.
City of Winter Springs
Summary oCCurrent Monthly Water, Wastewater, and Stormwater Rates
Water Sewer Stormwater
Residential
Base Facility Charge (meter size)
5/8 inch x 3/4 inch
I-inch
1-II2-inch
2-inch
3-inch
4-inch
6-inch
$3,58
8,94
17,89
28.62
57,23
89.50
178.85
$6.65
16.63
33,24
53,19
106.37
166.25
332.41
$2.04 [1]
2,04
2,04
2,04
2.04
2,04
2.04
I060-03\ExecSum.doc
ES-l
City of Winter Springs
Summary of Current Monthly Water, Wastewater, and Stormwater Rates
Residential (con't)
Commodity Charge (per 1,000 gallons)
o - 10,000 gallons $0.91 $2.59 [2] NI A
10,001-15,000 gallons 1.25 N/A N/A
15,001-20,000 gallons 1.50 NI A NI A
20,001-25,000 gallons 1.75 N/A N/A
25,001-30,000 gallons 2.00 N/A N/A
Above 30,000 gallons 2.50 N/A N/A
Commercial Service
Base Facility Charge (meter size)
5/8 inch x 3/4 inch $3,58 $6,65 $1.53 [1]
I-inch 8.94 16.63 1.53
1-l/2-inch 17,89 33.24 1.53
2-inch 28,62 53.19 1.53
3-inch 57,23 106,37 1.53
4-inch 89,50 166,25 1.53
6-inch 178,85 332.41 1.53
Commodity Charge (per 1,000 gallons)
All Usage $0.91 $2.59 N/A
Potable Irril!ation
Base Facility Charge N/A [3] N/A N/A
Commodity Charge (per 1,000 gallons)
0-5,000 gallons $1.25 N/A N/A
5,001-10,000 gallons 1.50 N/A N/A
10,001-15,000 gallons 1.75 N/A N/A
15,001-20,000 gallons 2.00 N/A N/A
Above 20,000 gallons 2.50 N/A N/A
(1] The fee for residential properties is detennined by applying the above-mentioned rate per equivalent residential
unit (ERU) to each individual dwelling unit located on the property. Commercial fee per each developed
property is derived by detennining total impervious surface area on a case-by-case basis and dividing by the
square footage for one (1) ERU as stated in the prevailing stormwater rate resolution.
[2] Maximum flow is capped at 10,000 gallons per month for the residential class of customer,
[3] Those potable water customers which receive dual metered service from a single service connection will only
be applied a single base facility charge (one charge per service connection),
Net Revenue Requirements from Rates
The various components of costs associated with the operations, maintenance, financing of the
system, renewals, replacements and capital improvements are generally considered the revenue
requirements of a publicly operated utility system, The development of the net revenue
requirements for the City's utility system is a critical component of the study since rates should
be designed to represent the full cost of providing service, To the extent that the estimate of the
revenue requirements is not accurate, the proposed rates could over or underrecover the
expenditure requirements of the System and therefore impact the utility from a financial
standpoint. The determination of the revenue requirements for the utility system of the City was
I060-03\ExccSum.doc
ES-2
made in a manner generally consistent with the methods employed for other publicly-owned
utilities utilizing revenue bond financing to meet their capital needs,
In our analysis of the rates for water, wastewater and stonnwater service, a five year forecast or
projection period was considered. The forecast period for the study was for the fiscal years
ending September 30, 2002 through 2006, This five-year forecast period was selected in order to
provide the City information regarding additional rate adjustments which may occur or be
required in the future, as well as to assist the utility in the development of financial projections,
Based upon the projections of utility expenditures, or revenue requirements, and the estimate of
sales revenue as discussed in Section 3, the estimated rate adjustments based on existing rates for
the Fiscal Year 2002 and the five year forecast period are shown as follows:
Fiscal Year Ending September 30
2002 2003 2004 2005 2006
Water System: (11
Net Revenue Requirements
from Retail Rates $2,523,215 $2,748,059 $2,982,696 $3,192,120 $3,106,573
Existing Retail Water Rate
Revenue [2] 2,414,498 2,629,661 2,854,243 3,192, 119 3, I 06,574
Estimated Revenue
Surplus/(Deficiency) [3] ($108,717) ($118,397) ($128,453 ) 0 0
Amount Percent (4.50%) (4.50%) (4.50%) 0.00% 0,00%
Percent of Partial Year Rate
Revenue [4] (6.75%) (6,75%) (6.75%) 0.00% 0.00%
[1]Derived from Table 3-1.
[2] Amounts shown based on rates currently in effect and include effects of rate adjustments in forecast
period (i.e" 2002 adjustment included in 2003 revenue).
[3] Reflects annual deficiency for each year assuming prior period adjustments.
[4] For years in which a rate increase is required, the increase is assumed to be effective on July I,
As can be seen above, the water system is anticipated to require a series of three (3) rate
adjustments during the course of the forecast period.
The development of the estimated revenue requirements for the wastewater system is shown in
detail on Table 3-2 in Section 3 of this report for each fiscal year is summarized as follows:
I060-03\ExccSum.doc
ES-3
Fiscal Year Ending September 30
2002 2003 2004 2005 2006
Wastewater System: 11]
Net Revenue Requirements
from Retail Rates $3,222,362 $3,495,823 $3,778,778 $3,900,921 $3,919,185
Existing Retail Wastewater
Rate Revenue [2] 3,083,681 3,345,245 3,615,949 3,900,921 3,919,185
Estimated Revenue
Surplus/Deficiency) [3] ($138,680) ($150,578) ($162,828) $0 $0
Amount Percent (4.50%) (4.50%) (4.50%) 0,00% 0.00%
Percent of Partial Year Rate
Revenue (4) (6,75%) (6.75%) (6,75%) 0.00% 0,00%
[I] Derived from Table 3-2,
[2] Amounts shown based on rates currently in effect and include effects of rate adjustments in forecast
period (i.e" 2002 adjustment included in 2003 revenue),
[3] Reflects annual deficiency for each year assuming prior period adjustments,
[4] For years in which a rate increase is required, the increase is assumed to be effective on July 1.
The development of the estimated revenue requirements for the stormwater system is shown in
detail on Table 3-3 in Section 3 ofthis report for each fiscal year and is summarized as follows:
Fiscal Year Ending September 30
2002 2003 2004 2005 2006
Stormwater System: (1)
Net Revenue Requirements
from Retail Rates $549,750 $624,666 $630,309 $634,854 $636,114
Existing Retail Storm water
Rate Revenue [2] 345.211 624,666 630.309 634.854 636.114
Estimated Revenue
Surplus/ (Deficiency) [3] (204,539) 0 0 0 0
Amount Percent (59.25%) 0,00% 0,00% 0,00% 0,00%
Percent of Partial Year Rate
Revenue [4] (79,00%) 0.00% 0,00% 0,00% 0,00%
[I] Derived from Table 3-3.
[2] Amounts shown based on rates currently in effect and include effects of rate adjustments in forecast
period (i,e" 2002 adjustment included in 2003 revenue),
[3] Reflects annual deficiency for each year assuming prior period adjustments,
[4] For years in which a rate increase is required, the increase is assumed to be effective on July 1.
As can be seen above (and as discussed more fully in Section 3) for the water, wastewater, and
stormwater systems, respectively, it is currently envisioned that these systems will require rate
adjustments in Fiscal Year 2002 to meet its expected revenue requirements, Additionally, based
on the capital improvement funding analysis and debt service requirements, we anticipate that
the water and wastewater systems will need additional rate adjustments in the Fiscal Years 2003
and 2004 to recognize increased revenue requirements of the system, The primary reasons for
the rate increases for the three (3) systems include the following:
I060-03\ExccSum.doc
ES-4
1. The last rate review and rate adjustment that the water and wastewater system
experienced was performed during the Fiscal Year 1991 which is over ten (10)
years ago and for the stormwater system over nine (9) years ago, As a result,
the cost of operations of the System due to inflationary allowances and
increased n:gulatory pressure on the cost of wastewater treatment and
storm water control have escalated at a amount greater than the growth of the
Systems, thus impacting the financial stability of the System,
2. Increases 'in future wastewater system operating costs (i.e., sludge hauling,
incremental costs associated with repairs and maintenance of the City's
transmission, treatment, and effluent disposal facilities over and above what
has historically been experienced and incremental increases in administrative
transfers to the General Fund which have increased from historical levels,
3. A reason for the increases is a result of the ongoing capital needs of the
system due to: i) its age (major replacement and betterments are beginning to
be required); ii) increased regulations and the requirements for system
upgrades; iii) the need to meet system growth requirements; and ivy meeting
environmental concerns and quality issues.
4, The need to begin funding the Renewal and Replacement Fund program in a
sufficient amount in order to develop a stable revenue source for the
betterment, replacement, or upgrades of utility plant in service which is
allocable to existing users as opposed to new growth,
Proposed Monthly Rates for Service
Based on the projections of customers and sales, projected utility expenditure requirements, the
allocation of costs to the rate structure attributes (cost .of service), and discussions with the staff
of the City, the proposed monthly rates for water, wastewater and storm water service are as
follows:
City of Winter Springs .
Summary of Proposed Monthly Water, Wastewater, and Stormwater Rates
Water Wastewater Stormwater
7/1/02 7/1/03 7/1/04 7/1/02 7/1/03 7/1/04
Residential
Base Facility Charge
(meter size)
5/8 inch x 3/4-inch $3.85 $4.11 $4.39 $7.10 $7.58 $8.09 $3.25 [I]
I-inch 9.65 10.30 11,00 17,75 18.95 20.23 3.25 [I]
1-1/2-inch 19.25 20.55 21,94 35.50 37.90 40.45 3.25 [I]
2-inch 30.80 32.88 35.10 56.80 60.60 64.73 3.25 [I]
3-inch 61.60 65.76 70.20 113,60 121.27 129.45 3.25 [I]
4-inch 96.25 102.75 109.68 177.50 189.48 202.27 3.25 [I]
6-inch 192.50 205.49 219.36 355.00 378.96 404.54 3.25 [I]
8-inch 308.00 328.80 351.20 568.00 606.40 647.20 3.25 [I]
I060-03\ExccSum.doc
ES-5
City of Winter Springs.
Summary of Proposed Monthly Water, \Vastewater, and Stormwatcr Rates
Water Wastewater Stormwater
7/1/02 7/1/03 7/1/04 711/02 7/1/03 7/1/04
Residential
Commodity Charge
(per 1,000 gallons)
o - 10,000 gallons $0.97 $1.04 $1.11 $2.77 $2.96 $3.16 N/A
10,001-15,000 gallons 1.34 1.43 1.53 N/A N/A N/A N/A
15,001.20,000 gallons 1.60 1.71 1.82 N/A N/A N/A N/A
20,001.25,000 gallons 1.87 2.00 2.13 N/A N/A N/A N/A
25,001-30,000 gallons 2.14 2.28 2.44 N/A N/A N/A N/A
Above 30,000 gallons 2.67 2.85 3.04 N/A N/A N/A N/A
Commercial Service
Base Facility Charge
(meter size)
5/8 inch x 3/4-inch $3.85 $4.11 $4.39 $7.10 $7.58 $8.09 $2.37
I.inch 9.65 10.30 . 11.00 17.75 18.95 20.23 2.37
1-1I2-inch 19.25 20.55 21.94 35.50 37.90 40.45 2.37
2-inch 30.80 32.88 35.10 56.80 60.63 64.73 2.37
3-inch 61.60 65.76 70.20 113.60 121.27 129.45 2.37
4.inch 96.25 102.75 109.68 177.50 189.48 202.27 2.37
6-inch 192.50 205.49 219.36 355.00 378.96 404.54 2.37
8-inch 308.00 328.80 351.20 568.00 606.40 647.20 2.37
Commodity Charge
(per 1,000 gallons)
All Usage [2] $1.37 $1.46 $1.56 $2.77 $2.96 $3.16 N/A
Potable Irri2ation
Base Facility Charge [3] N/A N/A N/A N/A N/A N/A N/A
Commodity Charge
(per 1,000 gallons)
0-5,000 gallons $1.34 $1.43 $1.53 N/A N/A N/A N/A
5,001-10,000 gallons 1.60 1.71 1.82 N/A N/A N/A N/A
10,001-15,000 gallons 1.87 2.00 -' 2.13 N/A N/A N/A N/A
15,001-20,000 gallons 2.14 2.28 2.44 N/A N/A N/A N/A
Above 20,000 gallons 2.67 2.85 3.04 N/A N/A N/A N/A
[1] The fee for residential properties is determined by applying the above-mentioned rate per equivalent residential unit
(ERU) to each individual dwelling unit located on the property. Commercial fee per each developed property is
derived by determining total impervious surface area on a case-by-case basis and dividing by the square footage for
one (I) ERU as stated in the prevailing stormwater rate resolution,
[2J Maximum flow is capped at 10,000 gallons per month for the residential class of customer,
[3] Those potable water customers which receive dual metered service from a single service connection will only be
applied a single base facility charge (one charge per service connection).
As can be seen above, the proposed rates for water, wastewater and stormwater service maintain
the same rate structure as the existing rates. With respect to the wastewater system, it is
recommended that the maximum billing threshold for the residential class be maintained at
10,000 gallons which is consistent with the breakpoint with the first water conservation block.
In reference to the storm water rates, no specific adjustments to the current structure or method of
application have been performed,
In order to illustrate the effects of the water and wastewater proposed rates, a comparison has
been prepared for customers which utilize 10,000 gallons of water and wastewater service per
month. The usage level represents approximately the median usage level for the single-family
I060-03\ExecSum.doc
ES-6
residential class. As shown on the comparisons, the proposed Fiscal Years 2002 through 2004
rates for the City at 10,000 gallons are competitive when compared to the other utilities as shown
below:
Residential Service @ 10,000 gallons
Water Wastewater Combined
City of Winter Springs
Existing Rates $12.68 $32.55 $45.23
Proposed Rates (effective 7/1/02) 13.55 34.80 48.35
Proposed Rates (effective 7/1/03) 14.51 37,18 5].69
Proposed Rates (effective 7/1/04) 15.49 39.69 55.18
Other Florida Utilities:
City of Altamonte Springs $23.28 $36,23 $59.51
City of Apopka 14.52 28.89 43.41
City of Casselberry 14.28 32,69 46.97
City of Clermont (East) 20.41 27.00 47.4]
City ofC]ermont (West) ]2,55 27.00 39.55
City of DeLand ]7,60 29.]4 46.73
FL Water Services - Oeltona Lakes ]9,78 65.24 85.02
City of Lake Mary ]4.50 33.80 48.30
City of Longwood 14.50 21.30 35.80
City of Maitland ]0.40 31.30 41,70
City of Mount Dora 10.90 29,86 40,77
City of Ocoee 12.74 28.5] 41.25
Orange County 16.47 45.66 62,13
City of Orlando 13,11 28.50 4],6]
City of Oviedo ]8.80 37,30 56.10
Polk County 25.36 50.82 76,18
City of St. Cloud 14.23 37.32 51.55
City of Sanford 17.14 35.57 52,71
Seminole County 13,10 37,25 50.35
Volusia County 23.33 40.50 63.83
City of Winter Garden 15.50 40.80 56.30
City of Winter Park 11.86 38.07 49,93
Other of Florida Utilities' Average $ ]6.11 $35.58 $.51.69
With respect to the stormwater system, the comparison has been prepared with other entities
throughout the Central Florida area who also charge storm water fees, As illustrated in the
following comparison, the proposed monthly rate per equivalent unit (ERU) is competitive with
the rate of other stormwater utilities.
I060-03\ExccSuITI.doc
ES-7
Monthly Storm water Rate per ERU
City of Winter Springs
Existing
Proposed
$2.04
3.25
Other Florida Utilities:
City of Altamonte Springs
City of Casselberry
City of Clermont
City of Daytona Beach
City of DeLand
City of Del ton a
City of Edge water
City of Lakeland
City of Lake Mary
City of Leesburg
City of Longwood
City of Mount Dora
City of Ocala
City of Ocoee
City of Orlando
City of OmlOnd Beach
City of Oviedo
City of Sanford
City of South Daytona
City of Tavares
City of Titusville
City of Winter Garden
City of Winter Park
Volusia County
$4.75
2,90
3.00
2,71
3.60
2.50
6.00
2.00
3.00
3.00
3,00
3.00
3.00
5,00
5.50
5.00
4.00
3.00
5.00
2.00
3.71
4.00
3.60
2.50
Other of Florida Utilities' Average
$3.57
Service Availability Charge Analysis
The City currently charges a one-time charge to new customers in the utility service area; the
purpose of which is to assign growth-related capital expenditures to those customers generally
responsible for such costs, Presently, a service availability charge for capacity utilization of the
System is charged for both potable water services and wastewater service, It is proposed that the
application of the service availability charges for these types of services be maintained,
The proposed service availability charges (Section 6) for potable water and wastewater service
were determined to be $1.48 per gallon of reserved capacity or $515 per equivalent residential
connection (ERC) assuming one (1) ERC equates to 350 gpd of reserved capacity for the water
system and $7.33 per gallon of reserved capacity or $2,195 per ERC for the wastewater system
assuming 300 gpd reserved capacity, The proposed charge for the water system reflects an
increase of $123, or 31.4%, in comparison to the previously existing water charge while the
proposed charge for the wastewater system reflects an increase of $305, or 16.1 %. Based on an
analysis of water and wastewater service availability charges, the increases were primarily
attributable to the higher estimated capital costs of providing service due to facility expansion
and upgrades anticipated during the planning horizon.
I060-03\ExccSum.doc
ES-8
With respect to the level of service (LOS) utilized in the determination of water system ERCs,
the City currently assigns an increased level of minimum flows in establishing an ERC for all
development in the "East System" portion of the City (primarily the Tuscawilla developments)
when compared to the rest of the City service area, Based on discussions with staff, level of
service differentials between the East System and the remainder of the City's water system
occurred years ago when the water system was essentially two (2) distinct service territories,
The City may wish to consider consolidating the water system level of service to 350 gpd (the
current level of service in the western part of the City), This LOS is also the standard utilized by
the Florida Department of Environmental Protection in its determination of typical levels of
service assigned to one (I) ERC.
Other Rates and Char'ges
In addition to the analysis of monthly user charges and connection fees, PRMG also evaluated
other miscellaneous charges as well as compliance with the Bond Resolution requirements
(covenants) for the outstanding system utility bond indebtedness, A brief summary of these
additional issues are presented below for the City's consideration:
Rate Covenants of Bond Resolution
The governing Bond Resolution which authorized the issuance of the outstanding Water and
Sewer Refunding Revenue Bonds, Series 1992 (the "Series 1992 Bonds") mandates certain
covenants which must be achieved, Based on the provisions of the Bond Resolution, rates for
service must produce Net Revenues (Revenues less Operating Expenses as defined in the Bond
Resolution) which, after the recognition of any required deposit, must be at least 110% of the
annual debt service payment in each fiscal year, The proposed rate adjustments for the water and
wastewater system for the study period reflected in the report are anticipated to meet the rate
covenants of the Bond Resolution.
Miscellaneous Charges
The City has several charges or fees which are billed to a customer for specific services, These
charges provide additional revenue to the utility and serve to reduce the amount of revenues
needed to be derived from user fees,
The fees are designed to recover the costs of providing specific services which may be required
periodically by a customer (e,g., a request for a turn-on) or as a direct result of customer actions
(e.g., returned and check charge), A summary of the existing charges and the recommended fees
for these services is summarized below:
I060-03\ExccSum.doc
ES-9
Meter Installation (Tap-in) Fees:
Meter Size
5/8 x 3/4 Remote Read
5/8 x 3/4 Double Check
Remote Read
5/8 x 3/4 Reclaimed Remote Read
I Remote Read
I Double Check Remote Read
I 112 Remote Read
I II2 Double Check Remote Read
2 Remote Read
2 Double Check Remote Read
Above 2
Returned Check Charge
Application Fee
Service Reinstatement Fee
Meter Reinstallation Charge
Inspection Fee
Late Payment Fee
Water Line/Meter Tampering Fee
Monthly Private Fire Protection Charges:
Connection
4-Inch
6-Inch
8-Inch
Television Inspection of Sewer Line Fee:
With City Camera/Crew
City Inspector Only
I060-03\ExccSum.doc
Installation Only
$120
225
150
N/A
200
N/A
450
N/A
550
Actual Cost
Existing Fees
Installationl
Tap-In
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Existing Fees
$20,00
$15.00
$20,00
$30.00
$20.00
$5.00 or 5.0% per Month of
Face Amount of Check
$50.00
Installation Only
$190
Proposed Fees
] nstallationl
Tap-In
$350
420
280
230
260
450
480
700
640
900
Actual Cost
380
390
600
660
900
840
],100
Actual Cost
Proposed Fees
$20,00 or 5,0% of Face
Amount of Check
$]5.00
$30,00
$35.00
$30,00
$5.00 or 5.0% per Month of Face
Amount of Check
$75.00
N/A $6,92
N/A 13,84
N/A 22.]4
$100,00 $100,00
$25,00 $30.00
ES-IO
Customer Deposits
In order to defray the risk of non-payment for utility services rendered until the negligent
customer is disconnected, water and wastewater utilities generally require each new residential
and non-residential customer to pay a customer deposit. The minimwn deposit for service
pursuant to Section 19-100 of the Code of Ordinances is based on the estimate of the utility
service requirements for an account for a two (2) month period. Based on the estimated period
of risk to the utility and based on discussions with utility department staff, we recommend that a
two (2) month deposit calculation period be maintained. Based on an analysis of these customer
deposit levels, the estimated breakdown of the deposit for the residential class is as follows:
Water [1]
Sewer [I]
Total
Total (rounded)
x2 Months
Residential Service
$13.55
34.80
48,35
$50.00
$100.00
[1] Based on 10,000 gallons per month typical single-family usage,
The non-residential class deposits are currently estimated based on the equivalent of
two (2) months' of water and wastewater service with a minimum deposit of $200,00. Based on
discussions with the City, new commercial establishments pay a deposit based on the historical
water and wastewater usage characteristics for similar establishments within the City, PRMG
recommends that this policy be maintained for these classes of customers, It is also
recommended the new minimwn deposit being raised to no less than $225,00 per applicant.
The City Code also addresses an issue concerning the return of interest earnings on deposits for
certain customers. Specifically, for those customers who are served by the City for a period of
less than six (6) months, no interest will be returned on deposits held by the City during that time
period. Based on discussions with City staff and due to the difficulty in justifying and enforcing
this policy, it is recommended the City consider rescinding this language from the City Code.
Each applicant for water and/or wastewater service is currently required to pay the applicable
customer deposit amount to the City at the time of service application. Based on discussions
with City staff, it is recommended that the deposit be waived if the applicant can provide to the
City a letter of credit at the time of service application. The letter of credit in effect can satisfy
the deposit requirement of the City in such circumstances when the service applicant can submit
one.
Reclaimed Water Service Charges
The City's primary method of effluent disposal for its wastewater treatment facilities is the use
of spray irrigation at several locations (i,e" golf courses, residential developments, etc,) in the
utility service area, The City currently provides reclaimed water service to several residential
developments and currently charges a flat monthly fee of $5.00 per month which assumes an
allowance of approximately 20,000 gallons of reclaimed water usage, The City currently does
not meter residential usage but intends in the future to undertake a reclaimed water meter
I060-03\ExccSum.doc
ES-ll
installation program where all residential users will subsequently be metered and be charged on a
monthly basis in relation to each customer's actual consumption, With respect to existing
non-residential reclaimed customers, the City currently meters these larger users and charges a
rate for reclaimed water service of $0.25 per 1,000 gallons of metered service. There is no
current meter or facility charge included in the non-residential rate structure. Based on
discussions with the City, it was deternlined that for the residential class, two (2) distinct rates
would be developed taking into account: i) the flat month fee approach which takes into account
the non-metered nature of the existing customer base; and ii) a base monthly charge/volumetric
rate approach would be utilized once the meter installation program is implemented. With
respect to the non-residential class, rate application will remain under the current methodology
which is a volumetric based approach. Based on a detailed allocation of wastewater system
revenue requirements, the following alternative reclaimed water rates were developed,
Amount
Residential Class:
Monthly Flat Rate
$8,55
Fixed/Variable Rate
Monthly Base Charge
Volumetric Charge (per 1,000 gallons)
0-20,000
Above 20,000
$3,55
$0,25
$0.50
Conclusions and Recommendations
Based on our studies, assumptions, considerations, and analyses as summarized herein, we are of
the opinion that:
1, The City's existing rates for service for the water, wastewater and stormwater systems are
not anticipated to recover the utility system projected revenue requirements for the fiscal
years ending September 30, 2002 through 2006.
2. The City should consider adopting the water, wastewater and stormwater rates proposed for
the Fiscal Year 2002 through 2004, which will meet the projected revenue requirements of
such fiscal year, The revenue requirements include operation and maintenance expenses,
the funding of capital improvements, and the payment of debt service associated with the
performance of system improvements and the funding of the near term expansion of the
utility system.
3, The proposed initial water, wastewater and stormwater rate adjustments, should be made
effective as soon as possible during the Fiscal Year 2002, The City should also consider
adopting the subsequent water and wastewater adjustments for Fiscal Years 2003 and 2004
to become effective on July 1, 2003 and July 1, 2004, respectively, Furthermore, the City
should closely monitor the rates for service since initial projections indicate that subsequent
future adjustments may be necessary during the next four fiscal years,
I060-03\ExccSum.doc
ES-12
. .
4, It is recommended the City consider adopting the proposed water and wastewater service
availability charges established at $1.48 per gallon of reserved capacity ($515 per ERC at
350 gpd) and $7.33 per gallon of reserved capacity ($2,195 per ERC at 300 gpd),
respectively, per equivalent residential connection,
With respect to the level of service (LOS) determination for water system ERCs utilized in
assigning applicants for water service specific ERC valuations, it is recommended the City
consider consolidating the East System LOS with that of the rest of the water system service
territory to 350 gpd. This level of service is currently utilized by the remainder of the City
water system and would standardize the determination of service availability fees to be
charged applicants for water service
5, The City should adopt the cost of the water meter installation (drop-in) fees and tap-in fees
to the following amounts in order to provide consistency in the recovery of costs to the
system:
Proposed Water Meterffap-In Installation Charges
Meter Size (inches) Installation/Tap-In Charge Meter Installation Only
5/8 x 3/4 remote read $350.00 $190.00
5/8 X 3/4 double
check remote read 420.00 280.00
5/8 X 3/4 reclaimed
remote read 380,00 230,00
1 remote read 390.00 260.00
I double check
remote read 600.00 450.00
I ~ remote read 660,00 480.00
1 ~ double check
remote read 900.00 700.00
2 remote read 840.00 640,00
2 double check
remote read 1,100,00 900.00
Above 2 Actual Cost Actual Cost
6, In order to defray the risk of nonpayment, the City should adopt the proposed water and
wastewater customer deposits consistent with the proposed increase in user fees or rates, The
deposits should continue to be based on the type of customer (e.g" residential), level of
service request (e,g" water and wastewater service). The recommended residential deposit is
summarized below (reference Section 6):
1 060-03\ExccSum.doc
ES-13
Residential
Water
$30.00
Wastewater
$70.00
Total
$100.00
The City Code also addresses an issue concel11ing the retUl11 of interest eal11ings on deposits
for certain customers, Specifically, for those customers who are served by the City for a
period of less than six (6) months, no interest will be retul11ed on deposits held by the City
during that time period, Based on discussions with City staff and due to the difficulty in
justifying and enforcing this policy, it is recommended the City consider rescinding this
language from the City Code,
Each applicant for water and/or wastewater service is currently required to pay the
applicable customer deposit amount to the City at the time of service application, Based on
discussions with City staff, it is recommended that the deposit be waived if the applicant can
provide to the City a letter of credit at the time of service application. The letter of credit in
effect can satisfy the deposit requirement of the City in such circumstances when the service
applicant can submit one.
7. It is recommended that the cost for the reinstatement of service to a new customer at their
request should be increased to $30,00 from the current $25,00 level. The City should also
raise the inspection fee for each connection requested from the current level of $20.00 to
$30.00, The applic.ation fee is recommended to be maintained at the current level of $15,00
per request.
8, The City should adjust the proposed reuse rates for the rate of treated effluent from the
City's wastewater treatment facilities to a flat monthly rate of $8,55 for residential users of
the system, Once the City's reuse system metering progr~ is complete, it is recommended
the monthly bas charge be lowered to $3.55 per month and monthly flow be billed at $0.25
per thousand gallons for the initial 20,000 gallons billed and rise to $0,50 per thousand
gallons for all flow thereafter.
9, It is recommended the City continue the retul11ed check charge to recover those costs
incurred as a result of the check being refused by the bank and returned to the customer for
insufficient funds. The City should adopt the minimum of $20,00, or 5%, of the face
amount of the check, whichever is greater. It is also recommended the City adopt a
not-to-exceed fee of approximately $40.00, concurrent with current parameters as outlined
in Florida Statute 832,07.
10. The City should consider ralSlng the reinstallation of water charge which is currently
charged to those customers who have had their water meter removed for such occasions as
non-payment, from the current level of $30.00 to $35.00 per occurrence.
11. The City should charge a fee to those customers requesting private fire protection services
provided by the water system, The private fire protection charges for recovering costs
relative to maintaining the water facilities for private fire protection services are
recommended to be the following monthly rates:
I060-03\ExccSum.doc
ES-14
Meter Size
4-inch
6-inch
8-inch
Monthly Charge
6.92
13.84
22.14
12. It is recommended the City adopt the increased water service line/connection tampering fee
to deter individuals from tampering with individual water meters on service lines, It is
proposed that a penalty of $75 be charged per occurrence,
13, The City should consider adopting a sewer lateral installation charge to reimburse the City
for those costs associated with instances when the City would install a sewer service lateral
for a new customer or development. It is recommended a fine of $670 be adopted.
14, The City should consider adopting the revised fees associated with the City performing
televised inspection of new sewer mains. to be donated by developers to the City, It is
recommended the City maintain the current fee of $100,00 per occurrence where the City
provides the crew and equipment to perform the task and to raise the fee from $25.00 to
$30,00 per occurrence when the City provides only the inspection (connection provides crew
and equipment).
15, The proposed rates as reflected in the study should be adequate to meet all the rate covenant
requirements (e.g" debt service coverage) as defined in the Bond Resolution which
authorized the issuance of the outstanding bond indebtedness allocated to the utility system,
16, The proposed water and wastewater rates are competitive with neighboring utilities,
especially at the average usage level for a residential customer of 10,000 gallons. The
proposed rates do produce bills which are competitive when compared to the average of21
utilities surveyed, primarily in the central Florida area.
17. The proposed rates as reflected in the study should be adequate to meet all the rate covenant
requirements (e,g" debt service coverage) as defined in the Bond Resolution which
authorized the issuance of the outstanding bond indebtedness allocated to the utility system.
18. The proposed water and wastewater rates are competitive with neighboring utilities,
especially at the average usage level for a residential customer of 10,000 gallons. The
proposed rates to produce bills which are competitive when compared to the average of 21
utilities surveyed, primarily in the central Florida area.
19, The proposed stormwater rates are competitive with other municipalities and Counties in the
central Florida area who currently charge monthly fees for such services.
I060-03\ExecSuITI.doc
ES-15