HomeMy WebLinkAboutDocumentation_Regular_Tab 8G_10/9/1997 2111:6
Memorandum
To: Village Council
From: Thomas G. Bradford, Village Manager
Date: October 2, 1997
Subject: Ordinance Increasing Water Rates; Agenda I
Attached hereto, please find an Ordinance for your consideration
relative to the above referenced.
The Finance and Administration Committee members met on July 22,
1997, to discuss, among other things, the need to increase the
rates charged by the Tequesta Water Department. In conjunction
with the engineering efforts to design the proposed Reverse
Osmosis Treatment Plant recently approved by the Village Council,
Reese, Macon & Associates secured the services of Robert Ori of
Public Resources Management Group, Inc. , of Maitland, Florida, a
utility, rate, financial management consultant to look at the
financial impact of the proposed reverse osmosis treatment
facility on the debt service and operational costs of the
Village. Mr. Ori gave his report to the Committee.
Mr. Ori initially recommended that based upon the various factors
reviewed by him, that the Tequesta Water Department would need a
one time rate adjustment of 8 .5%. Mr. Ori also continued his
financial review until this week. Mr. Ori now recommends an 8%
rate increase effective November 1st of this year and 4%
effective October 1, 1998 .
Please keep in mind that Tequesta's debt service for the R.O.
Treatment Facility will increase by over $200, 000 a year based
upon the previous debt service schedule that was recently
retired. In addition to this cost increase, additional
operational expenses will be experienced including the cost of
additional personnel (two Plant Operators) and an increase in
electrical power consumption to filter the brackish water.
The Committee recommended that the base rate be increased to
$9.80 per month, the same base rate as that currently charged by
Jupiter, a 4% increase on commodity rates effective upon adoption
and another 4% increase on October 1, 1998. Additionally, it was
recommended that the Village institute a capacity reservation fee
for developers, commence indexing its rates effective
October 1, 1999 and provide for automatic pass. through of price
increases from the Bulk Rate Agreement with Jupiter. We have
also taken the liberty of including a provision in the ordinance
that will allow the Village to recoup its costs in defending
Village Council
October 2, 1997
Page 2 -
itself in the Jupiter Water Rate dispute from the extra funds
collected and held in escrow from the effective date of this
Ordinance.
The . attached Ordinance accomplishes the most recent
recommendations of Mr. Ori and the Committee. In summary, the
Ordinance does the following:
• Commodity rates rise an average of 8% per rate tier
effective 11/1/97, rise an average of 4% effective 10/1/98,
allows automatic pass through of Jupiter price increases
and allows indexing October 1, 1999, based upon changes to
the Consumer Price Index applied to operating expenses,
subject to Village Council approval.
• Base rates for the most common meter rise to $9. 80 on
11/1/97 and $10 .20 on 10/1/98. This excludes the temporary
$7.00 charge due to the illegal Jupiter rate increase.
• Allows the Village to recoup costs in the Rate Dispute from
escrow funds prior to reimbursement of those proceeds to
each customer.
• Increase the fire protection charge to the Village of
Tequesta to $110 . 00 per hydrant per year. The current
charge is $100 . 00
• Fire line monthly charges are increased an average of
16.6%.
• Security deposits are increased $10 . 00 to $60. 00 .
• A capacity reservation fee is established at $7.25 per
equivalent residential connection per month.
• A Water Restriction surcharge adjustment of 18% in the
event regulatory authority imposes a 15% reduction in
water usage.
This rate increase is needed in order to provide for increased
revenues to meet the increased operational expenses of the
Tequesta Water Department by virtue of pursuing construction of
an R.O. Facility and to provide for a rate structure satisfactory
to potential bond holders to insure a revenue stream sufficient
to meet Tequesta' s obligations relative to anticipated debt.
Village Council
October 2, 1997
Page 3 -
Finally, Tequesta must begin to increase the cash reserves of the
Water Enterprise Fund to satisfy bond holders as well as to have
sufficient funds to meet unanticipated expenses that arise from
time to time in the operation of a public utility.
It is recommended that the Village Council adopt the attached
Ordinance.
TGB/mk
Attach.
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OCT 03 '97 11:10AM JONES FOSTER JOHNSTON & STUBBS P.1/12
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October 3, 1997 VIA FAX: 575-6203
Mr. Thomas G. Bradford
Village Manager
Village of Tequesta
Post Office Box 3273
•
Tequesta, Florida 33469-0273
RE: Village of Tequesta
Water Rate Ordinance
Our File No. 13153.1
Dear Tom:
Enclosed is the revised water rate ordinance which incorporates Rob
Orils changes outlined in his fax dated October 2, 1997.
Sincerely,
JONES, -• TER, JOHNSTON & STUBBS, P.A.
i Icy,
Joe C. Randolph
JCR.\esm
Enclosure
cc: Robert Ori - Via Fax
OCT-03 '97 11:10AM JONES FOSTER JOHNSTON & STUBBS P.2'12
ORDINANCE NO.
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA,PALM BEACH COUNTY,FLORIDA,
AMENDING CHAPTER 18,WATER,SO AS TO INCREASE THE
SCHEDULE OF RATES AND CHARGES ENUMERATED IN
SECTION 18-3,PROVIDING FORA CAPACITY RESERVATION
FEE, PROVIDING FOR AUTOMATIC ANNUAL RATE
ADJUSTMENT,AND PROVIDING FOR WATER RESTRICTION
SURCHARGE ADJUSTMENT;AMENDING SECTION 18 7,TO
INCREASE THE CHARGE TO THE VILLAGE FOR THE USE OF
FIRE HYDRANTS; PROVIDING FOR SEVERABILITY;
PROVIDING FOR REPEAL OF ORDINANCES IN CONFLICT;
PROVIDING FOR CODIFICATION; PROVIDING AN
EFFECTIVE DATE.
BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA,
PALM BEACH COUNTY,FLORIDA,AS FOLLOWS:
Section 1, Chapter 18 of the Code of Ordinances of the Village of Tequesta relating to
Water is hereby amended at Section 18-3,to read as follows:
"Sec.18-3. Same-Enumerated.
The schedule of rates and charges be, and the same are hereby determined, as
follows:
(a)Minimum Monthly Service Charge.
(1) Residential and Non-Residential
Ef,Wve Date
alls_Rindocioundliftgr)
11/1/97 10/1/98
5/8-inch meter $ 9.80 $ 10.20
3/4-inch meter 9.80 10.20
1.0-inch meter 24.50 25.50
1.5-inch meter 49.00 51.00
2.0-inch meter 78.40 81.60 •
3.0-inch meter 147.00 153.00
4.0-inch meter 245.00 255.00
6,0-inch meter 490.00 510.00
OCT 03 '97 11:10AM JONES FOSTER JOHNSTON & STUBBS P.3/12
The following rates shall be effective and assessed in lieu of the above rates to
accommodate increases in rates caused by an increase in water rates to the Village
of Tequesta from the Town of Jupiter.
Minimum Monthly Service Charge. •
Residential and Non-Residential
J f active Date
Bills Rendered on and Ate)
11/1122 10/1/98
5/8-inch meter $ 16.80 $ 17.20
3/4-inch meter 16.80 1720
1.0-inch meter 42.00 43.00
1.5-inch meter 84.00 86.00
2.0-inch meter 134.40 137.60
3.0-inch meter 252.00 258.00
4,0-inch meter 420.00 430.00
6.0-inch meter 840.00 860.00
The table attached hereto includes that portion of the increase due to increased
charges made to Tequesta by the Town of Jupiter which are passed on to Tequesta
customers as a result of Jupiter's increase in water rates to Tequesta. Funds realized
as a result of this increase shall be accounted for in a manner so as to provide that in
the event the Village of Tequesta is successful in overturning the water rate increase
imposed by the Town of Jupiter that increases can be accounted for and refunded to
the customer from whom they were paid,subtracting therefrom all administrative and
legal costs and attorneys' fees expended by the Village relating to Tequesta's
endeavors administratively and legally to overturn the water rate increase imposed
by the Town of Jupiter,whereupon the rates included in the above schedule,resulting
from Jupiter's increase,in place prior to the increase will be reinstated. Increases
enacted herein shall be returned to the customer who made payment on same in the
event Tequesta is successful in overturning the rate increase. Otherwise,said funds
shall remain with the Village of Tequesta and the rates imposed herein shall remain
in effect.
2
r OCT103 '97 11:11AM JONES FOSTER JOHNSTON & STUBBS P.4/12
r
Bate Effcctivg November 1,1997
Meter Size Increase Due
(Inches) Current Rate to Jupiter Total Rate
5/8 $ 9.80 $ 7.00 $ 16.80
3/4 9.80 7.00 16.80
1 24.50 17.50 42.00
1-1/2 49.00 35.00 84.00
2 78..40 56.00 134.40
3 147.00 105.00 252.00
4 245.00 175.00 420.00
6 490.00 350.00 840.00
Rate Effective October L 1998
Meter Size Increase Due
(Inches) Current Rate to Jupiter Total Rate
518 S 10.20 $ 7.00 $ 17.20
3/4 10.20 7.00 17.20
1 25.50 17.50 43.00
1-1/2 51.00 35.00 86.00
2 81.60 56.00 137.60
3 153.00 105.00 258.00
4 255.00 175.00 430.00
6 510.00 350.00 860.00
(2) Metering of multifamily buildings (M.F.) where a single meter is
installed in a water connection serving a multifamily structure,the
minimum monthly service charge shall be not less than an amount
equal to the number of dwelling units multiplied by the minimum
charge for a 5/8 x 3/4-inch meter or installed meter size,whichever
is greater.
(3) Metering of multifamily buildings-Nonresidential. In the case of
any nonresidential building housing more than one(1) business or
entity,each business or entity therein shall be metered individually.
Monthly minimum service charges shall be based on the established
charge by meter size. Where an existing single meter is installed in
a water connection serving two(2)or more bvstnPsses or entities,the
minimum monthly service charge shall also be based on the
established charge by meter size. Fire protection charges for fire lines
shall be separately included.
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OCT'03 '97 01:46PM JONES FOSTER JOHNSTON & STUBBS P.2/3
(b) Quantity Rate. Applicable to all quantities of water shown by meter readings
to have been delivered.
(1) Residential accounts, including single-family and multi-family
service classifications,monthly:
F rective.D4Q
WillaniftannAlditiltd
Mal 10/1/98
For each 1,000 gallons or fraction
thereof up to 12,000 gallons
delivered $ 1.55 $ 1.62
For each 1,000 gallons or fraction
thereof above 12,000 up to 25,000
gallons delivered 2.60 2.72
For each 1,000 gallons or fraction
thereof above 25,000 up to 40,000
gallons delivered 3.55 3.70
For each 1,000 gallons or fraction
thereof for all quantities delivered
above 40,000 gallons 4.55 4.75
(2) Nonresidential accounts, including commercial, government and
iaigation service classifications,monthly:
For each 1,000 gallons or fraction thereof pursuant to the Quantity
Step Rate Table and applicable Gallonage Allowance Per Quantity
Step Rate Table appearing below.
pffectiveDate
CailLISONIMEignAgAilal
Quantity Step Rate Table 11()12Z 1011/98
Step 1 S 1.55 $ 1.62
Step 2 2.60 2.72
Step 3 3.55 3.70
Step 4 4.55 4.75
4
OCT103 '97 01:46PM JONES FOSTER JOHNSTON & STUBBS P.3/3
Gallonage Allowance Per Quantity Step Rate Table (Thousand
Gallons)
Meter
Size
(Inches) Step 1 Step 2. Step 3 Step 4
5/8 1-12 13-25 26-40 41+
3/4 1-18 19-37 38-60 61+
1.0 1-30 31-62 '63-100 101+
1.5 1-60 61-125 126-200 201+
2.0 1-96 97-200 201-320 321+
3.0 1-180 181-375 376-600 601+
4.0 1-300 301-625 625-1,000 1,000.001+
6.0 1-600 601-1,250 1,250-2,000 . 2,000.001+
(3) Nonresidential Village of Tequesta accounts,monthly:
).fective Date
0BillsJtendered on ansl-A fterr)
11/1/97 10/1/98
•
For each 1,000 gallons
or fraction thereof $ 1.55 $ 1.62
In the event there is a master meter measuring quantities of water for two(2)
or more residential units,the gallons measured and charged pursuant to the
terms of this section shall be prorated by dividing the total gallons metered
by the number of units included on the master meter.
(c) Fire Protection Charge.
(1) Village of Tequesta-$110.00 per hydrant per year.
(2) Other areas- $0.60 per meter per month, except for services used
solely for irrigation purposes.
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OCT 0i '97 11:12RM JONES FOSTER JOHNSTON & STUBBS P.7,12
(3) Private fire connections. The following monthly service charges
shall apply to private fire lines for sprinkling systems or other fire
protection systems:
Meter Size
(inches) Amount
2 $ 7.00
3 16.00
4 29.00
6 70.00
8 120.00
The expense of all connections to the water mains shall be borne by
the user. No taps will be allowed which may be used for other than
fire protection purposes, and there shall be no connection with any
other source of water.
(d) Meter Installation Charge. All water meters shall be installed by the Village
of Tcquesta, and the charge for making such meter installations or a
replacement of a meter of a different size upon request of the customer shall
be as follows:
Meter Size
(inches) Amount
5/8 $125.00
3/4 145.00
1 180.00
1-1/2 325.00
2 550.00
The charge for water meter installations of sizes larger than 2 inches shall be
not less than the actual cost,including material,labor,equipment,inspection
and overhead. All meters installed remain the property of the water system.
(e) Interrupted Service.
(1) Reconnection charges. There shall be a Reconnection charge in the
amount of four(4)times the minimum monthly service charge for the
resetting of any meter which shall have been removed from service,
if resetting is done during regular working hours..
6
OCT'03 '97 .11:12AM JONES FOSTER JOHNSTON & STUBBS P.8i12
(2) Transfer of service(not including meter replacement). There shall be
a charge of ten dollars($10.00)during regular working hours.
(3) Outside regular working hours. If the customer requests that the
work in(1)or(2)above be done outside regular working hours,the
charge shall be twice the stated amount.
(f) Capital Improvement Charge. Each new connection to the water system after
the effective date of this subsection shall pay a capital improvement charge
of one thousand five hundred dollars($1,500.00)for each five-eighths-inch
by three-fourths-inch meter or equivalent thereof at the time of the
application for a new connection. Such payments shall go into a capital
improvement fund which shall be a separate fund to be used for capital
improvements to the water system or.for payment of debt service on the
water revenue certificates,series 1976,or subsequent issues.
In addition to the capital improvement charge set forth herein, each new
connection to the water system located on that geographic area within the
system known as Jupiter Island,shall pay a capital improvement charge of
two thousand three hundred ten dollars($2,310.00)for each dwelling unit,
at the time of the application for a new connection. Such payment shall go
into a capital improvement fund,which shall be a separate fund to be used for
capital improvements to the water system related to the improvements for the
users on Jupiter Island.
(g) Nonpayment of Service Charges. If any bill for water service has not been
paid within thirty (30) days from the date of billing, service shall be
disconnected after due notice thereof
(h) Security deposits. There shall be a security deposit of sixty dollars($60.00)
for each account established after the effective date of this section
[ )requiring a five-eighth-inch by three-fourth-inch meter
to be paid at the time of application for service. For all other meter sixes
there shall be a security deposit equivalent to three(3)times the minimum
monthly service charge for each account established after the effective date
of this section to be paid at the time of application for service. The security
deposit is intended as security for payment of any final bill prior to
disconnection. In computing the final bill for an account,the meter deposit
shall be credited to that account. The deposit will not bear interest.
(i) Meter sizing relocation of meters,fire hydrants and other appurtenances.
The water department reserves the right to determine the appropriate meter
size for each connection to the water system as referenced in American Water
7
OCT 03 '97 11:12AM JONES FOSTER JOHNSTON & STUBBS P.9,12
Work Association(A.W.W.A.)Manual of Water Supply Practices M-6. If
any customer requests that a meter,fire hydrant or any other water system
appurtenance be changed or relocated for their convenience, the customer
shall pay the actual cost of such change or relocation, including material,
labor,equipment,inspections,fees,overhead and permitting.
(j) There is hereby established an emergency service bulk water rate which shall
be applicable to metered connections specifically identified by the village as
emergency interconnections. The emergency service bulk water rate is
hereby established at one dollar and forty cents ($1.40)per one thousand
(1,000) gallons. This rate shall be reviewed periodically and revised as
necessary based upon changes in the operating, maintenance or purchase
water costs.
(lc) Capacity Reservation Fee. Each new connection to the water system which
has paid a capital improvement charge at the time of application for a new
connection shall pay a Capacity Reservation Fee for each equivalent
residential connection which has not been transferred to a customer or tenant
and considered as an active account The Capacity Reservation Fee shall be
billed monthly to all those applicants who possess permits authorizing
connection to the Village's water system or facilities. All applicants who
reserve capacity or hold water service agreements authorizing connection to
the Village water facilities shall begin paying the Capacity Reservation Fee
six (6) months from the effective date of passage of this Ordinance
( , 1997]or six(6)months from the date of issuance of the
conditional use permit for the project,whichever is later.
The monthly Capacity Reservation Fee shall be seven dollars and twenty-five
cents ($7.25) per equivalent residential connection. All unpaid Capacity
Reservation Fees shall accrue and no connection shall be allowed to the
Village's water facilities until all such unpaid accrued fees related to said
applicant or their assigns have been paid in full by the applicant or their
assigns. The obligation to continue payment of the Capacity Reservation
Fees for a particular ERC of capacity shall to urinate upon connection of that
particular ERC of capacity to the Village water system.
(1) Automatic Annual Rate Adjustment The Village adopts annually,effective
with bills rendered on and after October 1, 1999,and each year thereafter au
automatic increase to the monthly service charges and quantity rates as
contained in Section 18-3 to be applied to such rates which are in effect
immediately prior to the effective date of each annual increase. The annual
index adjustment shall be equal to the application of the Consumer Price
Index applied to the level of operating expenses as generally defined by
e
OCTI03 '97 11:13AM JONES FOSTER JOHNSTON & STUBBS P.10/12
R.
commonly accepted accounting principles,exclusive of bulk water purchases
from the Town of Jupiter or others,currently being covered in such rates for
water service. With respect to bulk water purchases from the Town of Jupiter
and others, any increase or decrease in the cost of such purchases to the
Village shall result in an automatic adjustment to such applicable rates and
changes as identified in Section 18 and shall be pass-through to the consumer
equal to the amount of such increase or decrease in such costs as billed by the
Town of Jupiter or others. The automatic annual rate adjustment shall not
apply to the water capital improvement charges as established by Section 1.
The application of the annual index adjustment will be presented to the
Village Council annually as part of the budgetary process and will not be
implemented without prior authorization and approval by the Village
Council. Any pass-through adjustment will be presented for Council
approval immediately upon notification.
(m) Water Restriction Surcharge Adjustment. In the event that the South Florida
Water Management District or other authority having jurisdiction declares a
water shortage requiring mandatory curtailment to the extent of a 15%
reduction in water usage, the consumption charges listed above shall be
increased 18%. In the event that a reduction of water use in excess of 15%
is required,the Village Council may establish by ordinance an appropriate
surcharge based upon a recommendation of the Village Manger es to the
revenue required to comply with debt service covenants or to meet other
requirements of the water system."
Section 2.• Chapter 18 of the Code of Ordinances of the Village of Tequesta relating to
Water is hereby amended at Section 18-7,to read as follows:
"Sec. 18-7 Rates for Village use.
The Village shall pay for the privilege of taking water from the waterworks system
through its fire hydrants for the prevention and extinguishment of fires a fire hydrant
charge at a rate not less than one hundred ten dollars ($110.00) per hydrant per
a nnum.
All water used by the Village itself for municipal purposes (other than for the
prevention and extinguishment of fires,water reasonably necessary for testing fire
hydrants,and water reasonably necessary for practice of Bremen)and all water used
by any other political subdivision or public agency shall be paid for at the established
monthly rate and charge.
9
• OCT 03 '97 11:13RM JONES FOSTER JOHNSTON & STUBBS P.11/12
Revenues received for water furnished to the Village and all hydrant charges
payable by the Village shall be deemed to be revenues derived firm the operation of
the waterworks system and shall be applied and accounted for in the same manner
as other revenues derived from the operation of said system;provided,however,that
nothing herein contained shall be construed as requiring the Village to avail itself of
the facilities or services afforded by said system."
Section 4_. Severability. If any provision of this Ordinance or the application thereof is
held invalid,such invalidity shall not affect the other provisions or applications of this Ordinance
which can be given effect without the invalid provisions or applications, and to this end, the
provisions of this Ordinance are hereby declared severable.
Section 5. Repeal of Ordinances in Conflict. All other ordinances of the Village h eby
Tequesta,Florida,or parts thereof which conflict with this or any part of this
repealed.
SgCtioa6. Codification. This Ordinance shall be'codified and made a part of the official
Code of Ordinances of the Village of Tequesta.
Section 7_. Effective Date. This Ordinance shall take effect immediately upon its passage
and approval,as provided by law.
THE FOREGOING ORDINANCE was offered by Councilmember
who moved its adoption, The Ordinance was seconded by
Councilmember and upon being put to a vote, the vote was as
follows:
FQRADQPTtQN 6DAMIADSEIMI
10
OCT 103 '97 11:1414M JONES FOSTER JOHNSTON & STUBBS P.12/12
The Mayor thereupon declared the Ordinance duly passed and adopted this day
of , 1997.
MAYOR OF TEQUESTA
Elizabeth A.Schauer
ATTEST:
Village Clerk
IIRU3133ORP WATE 3.RAT
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