HomeMy WebLinkAboutDocumentation_Regular_Tab 9F_6/18/1992 VILLAGE OF TEQUESTA
,.tli• lii Post Office Box 3273 • 357 Tcquesta Drive
AND,,-- Q Tequesta, Florida 33469-0273 • (407) 575-6200
.`fi t + ? FAX: (407) 575-6203
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MEMO Ft.A1%ir)
TO: Village Council
FROM: Thomas G. Bradford, Village Manager /��
DATE: June 12, 1992
SUBJECT: Town of Jupiter Proposed Water Rate Increase for Bulk
Sale Service to the Village of Tequesta; Agenda Item
The Town of Jupiter is proceeding with their proposed bulk rate water
increase by conducting a Public Rate Hearing on Tuesday, June 16,
1992, at 7:30 P.M. in the Jupiter Town Council Chambers. Jupiter is
proposing to increase the rate to $1. 22 per 1,000 gallons of water as
opposed to the current $. 85 per 1,000 gallons. The Village of
Tequesta Utility Consultant, Gee & Jenson, has determined that the
proposed rate reasonably approximates the cost of producing water
pursuant to the terms and conditions of the Bulk Rate Agreement
between the Village and Jupiter. However, the Village staff does not
recommend acceptance of this rate unless Jupiter is willing to modify
the Bulk Rate Agreement so that , the current "ratcheting" provision is
changed to be effective only in the event that the Village exceeds an
annual average daily consumption of 1.75 MGD.
The Town of Jupiter has adopted the Florida Public Service
Commission' s policy of indexing its rates to adjust for continuing
changes in costs. The index is published by the PSC on March 31 of
each year. The Village does not accept Jupiter' s contention that it
can unilaterally apply indexing to the wholesale rate of water in that
the wholesale or bulk rate is established pursuant to the terms and
conditions of our Contract.
Therefore, Village staff, at the Jupiter Public Rate Hearing, will
inform the Jupiter Town Council of our willingness to recommend
acceptance of a rate equal to $1.22 per thousand -provided that the
contractual "ratcheting" provision is amended as stated herein. We
will also go on record as opposing the application of indexing to our
Bulk Rate Agreement.
At the Village Council Meeting we will inform you as to the outcome of
the Public Rate Hearing and make our recommendations . to the Village
Council accordingly. Should the Rate Hearing be conducted in a
satisfactory manner from the Village' s perspective, we will seek
Village Council authority to accept and implement the new higher bulk
rate. Mike Rocca of Gee & Jenson will be present to review the
technical aspects of this matter as well as to present alternatives
for a new Village rate structure. The Village Attorney will be
prepared to advise you of the legal matters in this regard.
TGB/krb
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