HomeMy WebLinkAboutAgenda_Special Meeting_07/25/1995JLIL-21-'95 FRI 15:58 ID: TEL N0:
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Ca1na'lor ~~
Town Attamey Baird ~~_
ToaM't Manager L
~. Jolrrt Meetlnp ofi the Tauun Cancil of tt~e Town of Jupifier and the VINst~p Oo~a7
of the ViNaige a# Tequeata per 4'1~apter 164.103 of the ~ for the
Tequer~ tf~ T .k~in~an eto~arricably er~y a~ ~I
oorer~rsllee related thereto.
I. P~-= ~eQr~r
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~. -Arrng t;he~er ZO ofthe Town
Coda, entitled l.~ilfies, by amending the t Pr~~ far weber
aervlae.
~Seoor~d Ree~nB -'10/24/'96)
"If a person dudes to appeal any decision made by this Gourial with respect to any
matEer oor~slder~ed at this meeting or healing, helshe will need a record of the
and that, for such prupo®e, heJshe mmaayy need to ensure that a Merbatlm
record of prooeecAnas is made, which record iixx~udes the Irrany and e~idenoe
~ which appeal is to be based."
~o JONES, FOSTER, JOHNSTON & STUBBS, P. A.
ATTORNE1l8 AND COUNSELORS
FLAOLER CENTER TOWER
S05 SOUTH FLA(iLER DRIVE
lMlr i AtE%A1R)ER
1RGMEL T. KRAN2 ELEVENTH FLOOR Village of Tequest
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June 27, 1995
VIl1 CERTIFIED MAIL
RETIIRN RECEIPT REQOESTED
Mr. Lee R. EVett, Town Manager
Town of Jupiter
210 Military Trail
Jupiter, Florida 33458
RE: Village of Tequesta '
Town of Jupiter Request to Set Water Rate Hearing
Our File No. 13153.26
Dear Mr. Evett:
This office represents the Village of Tequesta.
On June 12, 1995, the Village received yaur letter, dated June 9,
1995, advising of Jupiter's staff's request to its Mayor and Town
Council to set a water rate hearing -and attaching an "Order
Establishing Schedule and Procedure for Rate Hearing." Said Order
proposed a hearing on July 25, 1995 before the Jupiter Town Council
and required the Village of Tequesta to answer Jupiter's rate
request by July 11, 1995, and to prefile testimony by July 18,
1995.
The proposed rate increase is based on the "Town of Jupiter Water
Systems Report on Rate Service to the Village of Tequesta"
("Report") of which the Village has a copy. The Report is in
direct violation of the express terms of the Bulk Sale Water
Service Agreement entered into by Jupiter and Tequesta on June 29,
1978, and all subsequent amendments thereto ("Agreement"), in~that
the Agreement does not provide for a rate increase in the manner or
based on the criteria set forth in the Report.
"` `ITr. Lee R. Evett, Town Manager
June 27, 1995
Page 2
Tequesta is prepared to file suit to obtain declaratory relief and
a permanent injunction challenging Jupiter's authority to increase
water service rates in the manner proposed by the Report.
This notice is given pursuant to Florida Statute 5164.103(a).
Sincerely,
JONES, , & STUBBS, P.A.
ohn C. Rand ph
JCR/ssm
cc: Thomas G. Bradford, Village Manager
JONES, FOSTER, JOHNSTON d~ STUBBS, P.A.
~' ` 210 Military Trail
Jupiter, Florida 33458
407 / 746.5134
FAX 407 / 575.7785
June 9, 1995
Mr. Thomas Bradford, Village Manager
Village of Tequesta
357 Tequesta Drive
Tequesta, Florida 33469
Re: Request to Set Water Rate Hearing
Dear VIr. Bradford:
Village of Tequesta
JUN 121995
Vl~ MRItS @I~3 ofSCE
Pursuant to the agreement between the Toa-n and Village, attached can be found
staff's request to set a water rate hearing.
cc: Thomas J. Baird
Philip Gildan
DUS Consultants
Town of Jupiter
Respectfully submitted,
~' ' TOWN OF JUPITER
INTER-OFFICE MEMO~UM
DATE: June 5, 1995
TO: The Honorable Mayor and Member of the Town Council
FROM: Lee R Even, Town Manager
R& Review of the V~1age of Tequesta Watts RatelRequest to Set Rate Haring
Enclosed for your review can be found the rate study performed by DL'S Consultanu
focussing oa the issue of rate equality between the retail customers of the Town's water
system as compared with the rate charged to the Village of Tequesta.
The DUS report confirms that the Town's retail customers are .currently subsiaizing
service to Tequesta. recording to our consultant's evaluation, Tequesta aauallv
undercontributed S613,148 during the 1993-1994 fiscal year. To correct the imbalance, DL'S
has included a recommended rate schedule which would increase the rate charged the Village,
while concurently reducing the rate levied on Jupiter customers. It is staff's recommendation
anti request that we take the nest step to insure equity within our rate structures by
scheduling a rate hearing in accordance. with the attached schedule and procedure prepared by
our legal counsel.
Respectfully
Lee R Evert
Town Manager
cC V'illag~ of Tequesta
1.
Z
3.
4.
~.
ORDER ESTABLISHING SCHIDULE AND PROCEDURE FOR RATE HEARING
STAFF REQUEST FOR RATE HEARING FII.ED
AND SERVED ON VII.II~GE OF TEQL'EST.A
NOTICE SETTING RATE HEARING
TO VII„LAGE OF TEQUESTA
ANSWER. TO STAFF RATE REQUEST
BY VII.I.AGE OF TEQUESTA
REQUIItEMF.NT TO PREFII.E TESI~IONY WITH
TOWN FOR ALL ~I~ICTNE.SSES TO BE CALLED BY
STAFF AND TEQUESTA AT RATE HEARING
RATE HEARING BEFORE TOWN COUNCII.
JU:vE 9, 1995
JUNE 20, 1995
JULY 11, 1995
JULY 18, 1995
JULY S, 1945
A. STAFF AND TEQL'ESTA SHALL EACH BE AF'rORDID 10 .~fl'Vi UTES rOR CPEI~IL'~iG
STAT'EviENTS.
3. STAFF A1~iD TEQL'ESTA J~I.~Y PQESE'~1T P:ZE'T.I.L. i :..SiZ1~10NY OR VLAy nRESiV'I'
LIVE TESTIMONY CORRFSPO~~L~iG :'O P?~~Z.ED TESiZ'ViONY. Ai.L WITNESSES
WHOSE TESTIMONY S PRESEVT"LD ~ItiST 3E AVAILABL..:. FOR CRCSS-
EX.AI~IINATION.
C. STAFF AND TEQUESTA SHALL HAVE RIGHT TO CROSS-c~LAMINE EACH WTNF.SS
Wf~THER PRESE~+"i'ED LIVE OR :"r~tOUGH PRE-r~.ED TESTL~IONY.
D. REDIRECT EX.3IvIINATION WILL BE PEFL1dTI':F~ BL? NO RE-CROSS
EXAMIl~iAiTON.
E. STAFF Al~TD TEQL'ESTA SK..AL:. EACH BE AFFORDETJ .5 viL'vL'TES FOR FL~TAL
ARGL'MFs~JT.
F. MEMBERS OF THE PUBLIC WILL BE ALLOWED COM11r1E:VT AFI'FR THE CLOSE OF
STAFF AND TEQL"ESTA'S TFS'I'L'b10NY AND ARGL"ME:VT.
G. IF REQLJESTID BY TOWN COUNCII„ EITHER STAFF OR TEQL'FSTA :tiiAY
RESPOND TO QL'FSTIONS FROM THE PUBLIC.
6. TOWN COUNCIL DELIBERATION TO BE SET AT
RATE HEARING
TOiiN OF JOPITER MATER SYSTEM
REPORT ON RATES
SERVICE TO VILLAGE OF TEQUESTA
PRBPARBD BY
DOS CONSDLTANTS
7777 GLADES ROAD - SDITB 211
BOCA RATON, FLORIDA 33434
MAY 31, 1995
TOfrRi OF JUPITER WATER SYSTEM
RBPORT ON RATES
SBRVICE TO VILLAGE OF TEQUESTA
PORPOSS
It is the purpose of this report to advise the Town Council,
sitting as a Rate Review Board, of the results of our
investigation regarding the appropriate charges to reflect the
system's required revenue in providing service to the Village of
Tequesta. This report and our investigation focused on the
issue of rate equality between the retail customers of the
Jupiter Water System as compared with the Village of Tequesta.
The report also seeks to furnish the Council with the material
necessary to .bring to closure, the rate process which began in
1992 focusing on retail rates; continued with a later
examination of the Village of Tequesta commodity rates; and
will, based on the matters set forth in this report, examine
equity and fairness as between all customers of .the system.
HISTORY
Water service has been furnished by the Town of Jupiter to the
Village of Tequesta pursuant to an agreement dated 6/29/78. In
1992 the Town Council examined the commodity charge to retail
customers as it compared with the commodity charge for the
service furnished to the Village of Tequesta. The Council
concluded, upon the-facts and reports furnished by staff and
consultants, that the cost of treating and delivering a unit of
water was virtually identical regardless of the identity of the
end user. Accordingly, the commodity rate was equalized so that
the commodity furnished to all customers was at the same cost.
Subsequent to the 1992 rate review which equalized the commodity
rate, the Council authorized an inquiry into the overall
relationship between retail customers the Village of Tequesta to
determine whether rate. equality existed between those two
classes, resulting in a fair apportionment in the costs of
operating the system producing revenues from each class which
fairly represented the appropriate share of the cost of
operating the system.
Page 2
PRINCIPLBS AAD GOIDELINES
Our investigation began with the recognition of the rate making
principle which requires that customers receiving the same
quality of service should be charged uniformly unless some
element or elements of cost can be demonstratively established
to have a greater or less impact on one class than the other.
The Jupiter Water System furnishes the same quality of water to
both its retail customers located within and without the
~aunicipal boundaries of the Town of Jupiter and to Tequesta.
Both the 3upiter retail group and Tequesta utilize the water for
essentially the same purposes. Both communities ace largely
residential, with a mix between single family and multi-family
residential units and the normal ancillary commercial usages
that follow a typical a residential community.
We note that the Jupiter revenue structure is based upon two
basic areas of revenue generation. First, is the base facility
charge levied against each customer in the retail division to
reflect that customer's contribution to the fixed and
nonvariable cost of operating the system without regard to
whether product is utilized or not. Second, a commodity charge
is levied for the measured quantity of water received by each
customer. Retail customers pay both the base facility and
commodity charge which, in the aggregate, reflects their total
contribution to the operation, maintenance and expenses of the
system. The nature of service furnished to the Village of
Tequesta has been based on a payment for commodity only and no
base facility charge has historically been levied.
I ~ ~~.
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The Agreement between the Town and the Village executed 6/29/78
clearly indicates that the intention was to furnish service to
Tequesta on a nondiscriminatory basis requiring that Tequesta
would be treated uniformly and equitably with all other
customers. The question of the propriety of the equality of the
rates_,w~,w~~__ no,t an issue until .1992 when the Town undertook the
~~~rst rate_ review' since the acqusition of the system in 1977.
~ Subsequent to the revision in the Tequesta commodity cost in
1992, a series of discusssions have taken place betwen the staff
of the Town and that of the Village with regard to the matter of
fairness and equity in the rate structure between retail
customers and Tequesta
The schedules which have been prepared by us and are appended
hereto attempt to effectuate the letter and intent of the
Tequesta Agreement, plus address the more classical cost of
service approach to rate making.
Page 3
THE SCBEDOLES
Schedule I reflects both revenues and expenses foc the system
oar t~six months ended 9/30/94 which was obtained from the
audit of the system's operating results. The particular six
month period was chosen since it corresponds with the first six
months of operation of the system in 1978 under the Town
ownership. A comparative six month period is suggested by the
Agreement dated 6/29/78 between the Town and the Village of
Tequesta.
The Schedule identifies $4,137,330 in revenues from various
sources. Under the expense categories the six months cost of
operations are identified at $3,622,703 and are adjusted, as
explained later, by $26,562 to an adjusted total of $3,596,141.
Schedule II details the adjustments made to Schedule I in the
expense categories.
Adjustment (A) recognizes the payment of the insurance
premium for a 12 month period and reduces the same to six
months .
Adjustment (B) identifies the billing and collecting
expenses which are a part of the general expense category
and have been separately identified since billing and
collecting will become a recommended separate rate charge.
Adjustment (C) reconciles the actual debt service set forth
in the financial statements for the six months ended
9/30/94 with the actual debt service schedule contained
within the Official Statement, resulting in an adjustment
downward of $183,439.99.
Adjustment (D) details the portion of the general fund
costs w is benefit the Water System and are properly
allocable to the Watec S stem. Annually, such irec
general fund charges equal 520,000 reduced to a half year
of $260,000 for the purpose of the schedules. Each of the
charges and their formulas are specifically set forth.
Adjustment (E) is the amortization of rate case expense to
account for the anticipated cost of this rate proceeding.
Page 4
Schedule III apportions the total operating costs from Schedule
I has a- d ted) and allocates them between retail customers and
Tequesta pursuant to three different allocation methods
separately set forth. Total operating expenses (a) of
2,278,141 is apportioned between retail at $1,994,093 and
Tequesta at 284,048. The schedule then includes the debt
service cost as identified on Schedule i and adds the required
debt .service coverage of 131,800, for a total (b) of
X1,149,800. Thia amount is apportioned as shown on the
~ schedule. The schedule then adds the re uirement for the
r and re 1 nt funding (c). a system s engineer
7
~i/'` t ave indicate that X2,0 , nua y be funded in the renewal
~ nd re lacement category to provide for the declining life of
~
~
"? the s y s t e m' s property , p l a n E~ a--- ~ n~ e q u i`-pfii€n ~f- : E o r
t ti e p ~Ttp-o-s~e--~e~f-
~ our analysis, we have accepted the $2,000,000 by the engineer as
a target, but have included 1,600,000 for the first pro forma
year of operations, with the suggestion that this account should
gradually increase to reach the engineer's recommended funding
level over a period of the next several years. The schedule
then makes provision for interest expense which recognizes that
Tequesta did not pay connection charges, while all other
customers in the system did. No entry is made in the total
column since all debt service has been paid by the retail system
customers up to the present time. The sum of $72,425 has been
deducted from the retail category and incorporated into the
~P/ ~` uesta colum reflecting the proper requirement of a carrying
cost for ant ca acity in the absence of the a ment of
P P P Y
connection charges. No principal is included in this
adjustment. Aggregating items (a), (b), (c) and (d), a total
allocated cost is identified as 3,856,496 required of retail
customers and 671,445 required from Tequesta for the six month
period. Transferred from Schedule IV-A is the total revenues
collected by the system for a six month period. Since the total
revenues collected were less than the system requirements, the
schedule identifies the increase required per six month period
in order to bring the system into financial balance. The
following entry expresses the increase on an annual basis.
Pursuant to Schedule V, the system is credited with the interest
income earned on unrestricted funds. Since none of the surplus
was generated from Tequesta (as a result of under-contribution
to the system) all of• the interest income credit is attributed
to the retail category. The schedule concludes by identifying
the increase required of Tequesta and the "refund" or reduction
to the retail category as a result of the foregoing analysis.
The revenue requirement on retail customers should be reduced by
366,933, while Tequesta should increase its contribution to the
system by 613,148.
Page 5
Schedule IV is an explanation of the allocation methods which
were use to develop the results of Schedule III.
Allocation Method ~1 relates to the percentage of total
system f ow uti ized by the retail customers and Tequesta.
For the six months ended 9/30/94 retail customers utilized
868 of the total flow, and Tequesta utilized 148 of the
total flow. Looking back at Schedule III, Allocation
Method #1 was used to apportion water supply and treatment
expense,, general and administrative expenses, debt service
and coverage expenses, and the requirement of renewal and
replacement funding.
Allocation Method #2 is designed for allocating billing and
collecting costs and has been apportioned on a meter basis
with 17,317 retail meters, compared with only one Tequesta
master meter. Based upon a billing and collecting expense
of $107,553 for the six month period, the annual cost per
meter has been identified at $12.42 or 1.04 per month.
Allocation Method #3 has been utilized to apportion the
cost of transmission and distribution main maintenance.
Q, ~~ This allocation method takes the total lineal feet of
~~~~""'~ 'transmission mains and separately identified the lineal
feet of distribution mains, allocating only the
transmission mains at 868 for the retail category and 148
for Tequesta. Of the transmission mains, 4.48 is thus
~;~~~ allocated to Tequesta, while 27.2$ is borne by the retail
ategory. Since distribution mains are have less
applicability to Tequesta, we conservatively allocated no
portion of the distribution system to Tequesta. When the
aggregate .distribution and collection system are combined,
only 4.48 of the cost is attributed to Tequesta, while
95.68 of that cost is in the retail category.
Schedule IVA sets forth the details used in developing the
average daily flow amounts and also the transmission and
distribution detail.
Schedule V supports Schedule III and is a calculation of the
unrestricted interest income of $568,215, which is reported and
included in Schedule III.
Page 6
Schedule VI - The text of the Tequesta. Agreement dated 6/29/78
suggests that a comparison between operating characteristics of
the system for the first six months of operations of the utility
ending 9/30/78 should be compared with a like six month period
of current operations. Schedule III detailed the operations for
the most current and comparable six month period ending 9/30/94
and identified total system operating costs at 4,527,941.
Schedule VI, following the same format, identifies operating
costs of the system for the first six months of system
~~~~~~ o er 'ons under the Town's ownership ending 9/30/78, as being
Schedule VI also reflects that an inequity between retail
customers and Tequesta revenue contributions to the cost of the
system existed as early -as the first six months of system
operations. The schedule identifies that, on an annual basis,
the retail customers overcontributed to the system by the sum of
$129,164 while Tequesta's contributions to the cost of operating
the system was deficient by $191,332. The shortfall of $62,168
was made up by tt~e Town from certain Water System allocable
general and administrative charges, plus .the Town's pledge of
tax revenues to support the coverage factors on the bond issue.
Schedule VII sets forth the allocation detail utilized in the
preceding Schedule VI.
Schedule VIII - As suggested by the Agreement between the Town
and the Village of Tequesta, a comparison of the cost of
operations are examined and expressed as a cost per 1,000
gallons of water actually produced by the system. In the six
months ended 9/30/78 a total cost for operating the system of
$568,558 has been previously identified. The average daily flow
eriod w 3.7 M Otherwise stated, the system sent
V ~ to customers for the six months ended 9/30/78 a total of
675,300,000 gallons. A cost can thus be computed to identify
$.84 of cost per 1,000 gallons sent to consumers. As a
comparison, the same statistics expressed for the six month
period ended 9/30/94 shows that $4,527,941 was the cost of
operations, while the system provided to customers an average
daily flow of 10.7 million gallons, for an ag regate total for
the six months of 1,952,800,000 gallons, or cost o ~' 2.32„_per
1,000 gallons. As suggested by the Tequesta Agreement; 6~oth the
magnitude of the increase in cost and. the Mend can be
identified by this Schedule.
Schedule IX is discussed in Conclusions and Recommendations.
Page 7
Schedule X demonstrates the effect of the rates recommended by
this report on each class of customer as of 9/30/94. If a
uniform rate is adopted, whereby Tequesta and retail customers
each pay a uniform base facility charge and a uniform commodity
charge the result will still represent a deficiency from
Tequesta of $106,569. This represents a revenue deficiency for
the whole system in an equal amount. We believe the Council can
reasonably conclude that the importance of establishing uniform
rates outweighs the possibility that Tequesta will continue to
underfund the system. The contribution of Tequesta has been
based upon the minimum purchase committment of 1.5 ~MGD when the
actual consumption may end up somewhat greater. To the extent
that Tequesta uses more than 1.5 HG per average day, the
contribution shortfall of $106,569 will be reduced. If, for
example, Tequesta's average daily use was 1.75 MGD, the
additional revenue would eliminate the $106,569 shortfall shown
on Schedule X.
CONCLUSIONS AND RECOMMENDATIONS
Our investigations of the operations of the Utility Division has
indicated (See Schedule III) that, on an annual basis, the
system revenues were inadequate to the extent of $246,215. Of
this amount, Tequesta undercontributed to the system by
$613,148. This means that retail customers overcontributed to
the system (notwithstanding the overall deficiency in revenues)
by $366,933. We would recommend that a rate schedule be
instituted to rectify this condition.
As indicated earlier in this report; we believe that the
overriding principle of rate making clearly indicates that all
customers should be treated equally,. unless direct cost
differences exist between the two customer categories.
Accordingly, we have developed a schedule of recommended rates
and have set the same forth on Schedule IX, attached hereto,
which reflects a comparison of our proposed rates with those
currently in effect. Schedule IX reflects a reduction
recommended for all customers in the base facility charge (5/8'
meter size) from 9.34 downward to $7.89. Larger meter sizes
are proportionately reduced.
We separately calculate the cost of billing and collecting,
which is set forth in the recommended schedule as "meter fee.
charge'. Since the system provides only one bill to Tequesta
but does individually bill its retail customers, this represents
a direct cost differential which should be reflected as a
separate charge per meter installation. Accordingly, we
recommend that a meter fee charge of $1.04 per month, per meter
be adopted.
Page 8
Multi-family rates are expressed in a percentage relationship to
single family customers, and therefore the recommended Cate
change is proportionate to single family as it has been in the
past. Multi-family installations have generally been served by
master meters and they will continue to be thus served with the
one meter charge being added to their bill. It should be noted
that the reduction accorded single family retail customers
appeared to be larger since the individual meter charge has been
eliminated and shown separately.
General Service (Commercial) Rate and Fire Line Rates have been
adjusted in accordance with the same formula.
The recommended commodity rate for Tequesta and retail customers
becomes an identical $1.27 per thousand. Since the commodity
charges have been equalized in the past, this represents no
material change other than the adjustment required to raise the
commodity charge from $1.23 to $1.27. Under the contract,
Tequesta is required to take a minimum of 1.5 MGD. Our
recommendations reflect the fact that each of the Town's
individual retail customers have been paying a base facility
charge of $9.34, now recommended to be reduced to $7.89, while
Tequesta has made little contribution to the fixed and
nonvariable costs of operations which are partially offset by
the base facility charge. It should be noted that Tequesta has
never paid the increase in commodity rate from $1.22 to $1.23
because they did not recognize the indexing in April, 1994 that
all other customers were subject to.
The absence of levying a corresponding base facility charge on
Tequesta is the cause of the inadequacy of contribution to
overall system costs by Tequesta. It is our recommendation that
all similarly postured customers be treated equally. Therefore,
Tequesta, which equates to 5,714 equivalent retail customers,
should bear the same per unit cost of $7.89 as retail
customers. The recommended rate schedule calculates that
$45,083 per month is the appropriate base facility charge to be
levied on Tequesta.
When and if
~M~ schedule, we
utilizing the
cost adjustme
both Tequesta
~ factor.
the Council decides to adopt a revised rate
would further recommend that the practice of
Florida Public Service Commission indexing as a
nt factor in rates be also made uniform so that
and retail customer rates are adjusted by the same
q"'_ ' ,~
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oal was to d
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frR~.1~~ whether or not cost of servi ce inquir ies supported the concept
~
r,q~% that all customers utilizing a similar service should be subject
r~~
. to the same rate schedule unless cost factors indicated
otherwise. We would conclude that the facts and circumstances
Page 9
' .r a~~d___hy._.__this report clearly dem_ onstrates that a unif__orm~
rate approach should -be~ "utilized, but ~~ha~~~'~equ~st~s ou o
a~lation of a full share of the cost of billing and
collecting since the same is best expressed on a separate meter
charge as recommended in the rate schedule.
We would like to acknowledge the assistance of Mr. David Brown,
the Utilities Director and his staff, in making required data
available to us in the compilation of this report. As in the
past, we look forward to the opportunity to discuss the report
and its findings with the Council at the appropriate time and in
the appropriate form.
Respectfully submitted,
DUS CONSULTANTS
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TONN OF JUPITER
WATER OPERATING STATEMENT
FOR SIX MONTH ENDED 0 1
ADJU TMENTS
~~-- ~ ""'
(A) In April 1994c~nsurance Premium Eor the
entice year was paid in the amount of ~ 219,243.96
Foc the six wonths ended 9/30/94 one-half
is subtracted )
(B) General Expense includes billlna and ,
collecting expenses which d'iTstorical ha~~,- ,.~~~~, w,,~`~~
been equal to 41t of the to a enecal
Expenses ,.~~.,. , .:_.~,.~..~r..-,.~-,,.~
Total General Expenses # 481,568.19
Less Insurance Expense 219 2~)
~,
TisKS Billing i Collecting Percentage 41
Billing i Collecting Expense ~Tb~~~3
(C) Debt Service for Six Months Ended 9/30/94
a.s set forth in the Financial Statements # 1,501,439.99
Debt Service Per Official Statement for
Year 1995 is X2,636,000; one-half year is (1 318 000.00)
Adjustment of Debt Service 4 )
(D) stima of water System Coats b Expenses
s supp led by the General Fund
~,~
~ ~ ~~ ~~-
~ ~'
~~~. ~' ``
/~ ~`
~-
4
Salaries:
Information Systems:
Total Budgeted salaries 5 fringe benefits
Estimated time on water system projects
Finance
Director (St)
Assistant Director (20t)
Accountant (5t)
Acct. Clerk iiI (20t)
Acct. Clerk II (40t)
Administration
Personnel Specialist (7t)
Town Clerk (St)
Deputy Town Clerk (5t)
Town Manager (5t)
Sub-Total - Salaries/Fringes
Electric (Administration Offices)
Telephone
Audit
Town Attorney - Retainer (15t)
Infoc~ation Systews - Maintenance (SOt)
Police (2t of budget)
Code Enforcement (2t of budget)
planning ~ Zoning - emergency preparedness
and development coordination
Public Service - Pleet Maintenance, misc.
packs i Recreation - Grounds Maintenance
Rent (3,300 s.f. a fi15.00/s.f.)
Town Council (4.5t of Budget)
Town Hall-Maintenance, Other Utilities, etc.
Miscellaneous Supplies i Other Overhead Chgs.
Yearly Estimated Total
One-Half Yeac Total
(E) Estimated Cost of Rate Case Expense 39,000
Three Yeac Amortization
One-ealf Year
~ 241,148.00
X .75
1 , 00.00
4,600.00
10,800..00
2,000.00
6,600.00
11,300.00
2,eoo.oo
3,70.00
1,800.00
5.500.00
230,000.00
12,000.00
6,000.00
12,000.00
10,000.00
21,000.00
105,000.00
2,500.00
k,
j
~,
,,.>1:' _
•\
12,000.00
10,000.00
2,500.00
49,500.00
7,500.00
30,000.00
10 000.00
1
6 5
SCHEDULE III
TOWN OF JUPITER
WATER OPERATING STATEMENT
FOR SIX MONTHS ENDED 30 94
Water Supply ~ Treatment
Transmission 6 Distrib.
General ~ Admin.
Billing & Collecting
Rate Case Exp.(Amort.)
Total Operating Exp.(a)
Debt Service
Debt Service Cov. 10$
(b)
R & R Fund Require. (c)
Imputed Interest
(Tequesta Customers)
for Plant Capacity
Absent Payment of Conn.
Chgs.(5,714 ERCs x $390
X 6.5$ divided by 2 (d)
Total (a) {b) (c) ~ (d)
Total Revenue Collected
Increase Req'd. 1/2 Yr.
Increase Req'd. Yearly
Interest Income on
Unrestricted Funds
Increase (Refund)
Required Yearly
ALLOCATIOr~
TOTAL RETAIL TEQUESTA METHOD
1,374,798 1,182,326 $192,472 # 1
264,897 253,242 11,655 # 3
524,393 450,978 73,415 # 1
107,553 107,547 6 # 2
6,500 -0- 6,500
$2,278,141 X1,994,093 284 048
1,318,000
131 800
1 449 800
1,246,828
202,972
# 1
$ 800,000 ~ 688,000 112 000 # 1
-0-
X4,527,941
4,120,726
~ 407,215
~ 814,430
(72,425) 72,425
$3,856,496 671,445
3,755,855 364,871
~ 100.641 306 574
~ 201,282 613 148
$( 568,215) ~( 568,215) -0-
~ 246.215 ~( 366.933) 613 14
SCHEDULE IV
TOWN OF JUPITER
WATER ALLOCATION BASIS FOR EXPENSES
FOR SIX MONTHS ENDED 9 30 4
TOTAL
SEE
RETAIL TEQUESTA SCHEDULE
Allocation #1
Average Daily Flow 10.7 MGD
Percentage 1 00.00$
Allocation #2
Total Metered Accounts 17,318
Cost for Six Months of
Billing & Collecting $107,553
Yearly Cost per Meter $ 12.42
Monthly Cost per Meter $ 1.04
Allocation #3
FT. $
Lineal Feet of
Lines -Transm. 364,250 31.6
Times Percentage of
Average Daily Flow
Lineal Feet of
Lines - Distr. 788 600
1,152, 50 68.4
100.0
9.2 MGD 1.5 MGD (IV-A)
86.0 $ 14.0 $
17,317 1
RETAIL TEQUESTA
31.6$ 31.6$
86.0$ 14.0$
4.4$
68.4$ -0-
5.6$ 4.4$
(IV-A)
SCHEDULE IV-A
TOWN OF JUPITER
WATER ALLOCATION BASIS FOR EXPENSES
FOR SIX MONTHS ENDED 0 4
SCHEDULE BACK-UP
(1)
(2)
Monthly Billing
in Million Gallons: JUPITER
RETAIL TEQUESTA Total
April 1994 282.909 43.346
May 1994 297.435 51.370
June 1994 274.963 41.085
July 1994 271.567 56.900
August 1994 290.771 37.948
September 1994 259.521 37.344
Total Six Month Flow 1,677.166 267.993
Divided by Days 182.5 182.5
Average Daily Flow 9.19 MGD 1.47 MGD
Rounded 9.2 MGD 1.5 MGD 10.7 MGD
Length of Piae FT.
Transmission - 30"
24"
18"
16"
12"
10"
500
23,870
20,670
56,785
140,925
121,500
364 , 250
Distribution - 8" 350,400
4' & 6 438,200
788,600
SCHEDULE 'J
TOWN OF JUPITER
WATER OPERATING STATEMENT
FOR SIX MONTHS ENDED 30 94
CALCULATION OF UNRESTRICTED INTEREST INCOME:
1994 1993
Funds:
Restricted X16,646,383 ~ 7,166,166
Pool Cash 636,865 726,241
Investments 13,329,206 11,797,896
Total $30,612,454 X19,690,303 $ 50,302,757
Divided by 2 1/2
Average for Year 25,151,37?
1994 Interest Income $ 1,078,99
Rate of Interest 4.29=
Total Average Funds $ 25,151,37?
Total Average Restricted Fund $111,906,275
Total Average Unrestricted Fund ~ 13,245,iQ4
Interest Rate .042E
Unrestricted Interest ~ 568.215
SCHEDULE VI
Water Supply & Treatment
Transmission ~ Distrib.
General & Admin. Expense
Billing & Collecting
Total Operating Exp.(a)
Debt Service
Debt Service Coverage
(b)
TOWN OF JUPITER
WATER OPERATING EXPENSE
FOR SIX MONTHS ENDED 30/78
TOTAL
133 066
14 640
75 081
24 097
246 884
268,000
26 800
294 800
RETAIL
86 493
12 596
48 803
24 087
171 979
TEQUESTA
46 573
2 044
26 278
10
74 905
ALLOCATION
METHOD
191 620 103,180
Imputed Interest
(Tequesta Customers)
for Plant Capacity
Absent Payment of Conn.
Chgs. (5,714 ERCs x 390
x 6.5$ divided by 2 (d) -0- $(72,425) 72,425
R ~ R Funding
Requirement (c)
Total (a) (b) (c) & (d)
Total Revenue Collected
Increase Req. 1/2 Yr.
Increase Required Yearly
Underpaid or (Overpaid)
By Class
26,874
568 558
537,474
31 8
62,168
62 68
17 468
~ 308,642
373,224
64 582)
$(129,164)
12 64)
9 406
259 916
164,250
95 666
191,332
1 1 332
# 1
# 3
# 1
# 2
# 1
# 1
SCHEDULE VII
TOWN OF JUPITER
WATER ALLOCATION BASIS FOR EXPENSES
FOR SIX MONTHS ENDED 30 78
TOTAL RETAIL TEQUESTA
Allocation #_1
Average Flow 3.7 MGD 2.4 MGD 1.3 MGD
Peccentage 100= 65$ 35t
Allocation ~ 2
Total Metered Accounts 2,401 2,400 1
Cost for Six Months of
Billing ~ Collecting $ 24,097
Cost Per Metered Acct.
for Six Months 10.04
Yearly Cost $ 20.04
Monthly Cost $ 1.67
Allocation # 3 Feet Percent Retail Tequesta
Lineal Feet of Lines-
047
93
39.9
39.90$
39.90
Transmission ,
Times Average Flow
3~.9 65.00$
25.94$ 35.00
13.96$
Lineal Feet of Lines-
Distribution
1
40,393
60.1
60.10$
-0-
100.0 86.04$ 13.96$
SCHEDULE VIII
TOWN OF JUPITER
WATER OPERATING EXPENSES
COMPARATIVE COST OF WATER PER 1,000 GALLONS
TOTAL RETAIL TEQUESTA
Total Cost of Water
Six Months Ended 9/30/78 (A) $ 568,558 $ 308,642 $ 259,916
Average Daily Flow 3.7 MG 2.4 MG 1.3 MG
Flow Per 1,000 Gallons for
Six Months Ended 9/30/78 (B) 675,250 438,000 237,250
Cost Per 1,000 Gallons
(A) divided by (B) ~ .84 ~ .70 ~ 1.10
Total Cost of Water
Six Months Ended 9/30/94 (A) $4,527,941 $3,856,496 $ 671,445
Average Daily Flow 10.7 MG 9.2 MG 1.5 MG
Flow Per 1,000 Gallons for
Six Months Ended 9/39/94 (B) 1,952,750 1,679,000 273,750
Cost Per 1,000 Gallons
(A) divided by (B) ~ 2.32 ~ 2.30 ~ 2.45
TOWN -0F JUPITER
RECOMMENDBD RATES
AS O
Monthl Rates
A Base Rate
Residential
Base Paci~ty Charge
No Gallonage Allowance
Mte~_
1•
1 1/2•
~" 7
Metec !ee Charge - All Meter Sises
!lulti-Fa~^ily
Base Fac3Tity Charge
No Gallonage Allowance
~ 1111 Meter Sizes
i
I
Meter Fee Charge - All Meter Sizes
general Se (Coma-ercial )
v /'
~', J~ ~ ~,
~~
~r ~, ~ ~~J
_r !
~t
~~} .
se Facility Chacge
No Gallonage Allowance
Meter Size
~-
1•
1 1/2•
2'
3•
4•
6•
8•
10•
Metec Fee Charge - All Meter Sizes
Fire Line Ratea
Liae Sise
+~ ~ 2~
i ~~~ 3•
,~ 4 •
6•
8•
10•
12•
Te ueata Rate
~~~wua Tate oc Pay at 1.5 MG
Per Day, per 1,000 Gallons
s
~: Base Pacility Chacge
No Gal. Allow. 5,714 ERCa X $7.89
(B) Commodit Rate
Ga onage Charge pec 1,000 Gallons
For All Service
t~
~`~.
CURRENT
~ 9.34
23.36
46.73
74.7e
-0-
PROPOSED
7.89
21.23
43.46
70.14
1.04
# 6.67/unit fi 6.35/unit
-0- # 1.04
# 9.39 $ 7.89
23.36 21.23
46.73 43.46
74.78 70.14
116.83 110.14
233.67 221.28
5b0.81 532.45
701.00 665.80
934.67 888.07
-0- ~ 1.04
35.23 # 33.51
66.32 63.08
102.59 97.58
201.03 191.22
320.19 304.56
459.05 436.65
856.96 815.14
1.23
-0-
1.27
>~ 1.27 _
#95,083.00 ,
1.27
SCHEDULE X
EFFECT OF RECOM
TOWN OF JUPITER
LADED RATES ON CLASS OF CUSTOMERS
.. ,,.,
TOTAL RETAIL TEgUESTA
Annual Revenue Requirement $ 9,055,882 $ 7,712,992 $ 1,342,890
Revenues on the Recommended
Rates, Based on Wholesale
Using 1.5 MGD $(8,949,313) (7,712,992) $(1,236,321)
Net Shortage of Revenue
Requirement ~ 106.569 -0- ~ 106,569
Excerpt from the Toga of Jupiter Ordinance No. Z8-91 regarding the
application of the Florida Public Service Com®iaaion's Annual Price
Index for IItility Services to water rates:
Section 3. Chapter 25 of the Code of Ordinances of the Town of
Jupiter, Florida, entitled WATER SERVICE, is hereby amended by
creating new Section 25-13.1 thereof, entitled Establishment and
change of Water Service Rates, Fees and Charges, to read as
follows:
Section 25-13.1 Establishment and Change of Water Service
Rates, Fees and Charges.
The Town shat= fix rates, fees and charges for water service
which shall remain in effect unt_1 amended by further
ordinance or pursuant to an automatic increase or decrease
thereof by and adjustment conforming to the cost information
contained in the annual price index for utility services
promulgated by t:~e Florida Public Ser-rice Commission. The
implementation of this automatic c::^.ange i_^. rates, fens ar.~
charges shall follow the general guidelines contained in
Section 367-08~, -lorida Statutes, except where such
provisions are inapplicable to a municipally owned water
system. Provided however, that before any such automatic
increase or decrease shall occur, the recommendation for the
proposed change in rates, fees and charges shall first be
brought to the Town Council's attention by the Town staff at
3 public meeting, and the Council may act to negate or
approve, in whole or in part, t:~e amount of any such
recocsunended change, which change shall thereupon be
implemented in accordance with the Council's direction.
Should the Council take no action upon the staff
recommendation, the same shall take effect as of the start of
the next billing cycle.
}Y.,
A G R E E M E N T
BULK SALE WATER SERVICE
THIS AGREEMENT, made and entered into this /S day of
;'y' 1976, by and between the VILLAGE OF TEQUESTA,
Beach County, Florida, a municipal corporation hereinafter
eferred to as "Village", and TRI-SOUTHERN UTILITIES COMPANY, INC.,
corporation organized and existing under the laws of the State of
orida, hereinafter referred to as "Utility"
WHEREAS, Utility is organized and operates to provide water
reatment and distribution services to the public within a certifi-
ted area in Palm Beach County, Florida, under the authority of and
suant to the regulation of the Florida Public Service Commission;
WHEREAS, Village owns and operates water production and dis-~
ribution facilities designed to provide service to consumers located
thin and without the Village; and,
WHEREAS, Village desires to provide for the present and
ture water requirements of existing consumers and the anticipated-
h within its service area; and
WHEREAS, Utility is desirous of making available a quantity
f potable water for bulk sale to Village, on a continuous basis for
he term of the contract to enable Village to receive such service
hrough interconnection with Utility's system and, by way of master
eter, receive potable water for distribution to Village's consumers;
NOW THEREFORE, in consideration of these premises and the
JOHNSTON
$ASSER R RANDOLPH
It13 HARVEY BUILDING
WEST PALM SEAOH. PLA.
99002
tual covenants and obligations set forth herein, the parties
expressly covenant and agree as follows:
1. DESCRIPTION OF SERVICE - Utility agrees to provide to
Village and Village agrees to accept, all pursuant to the further
terms and conditions set forth herein, a quantity of potable water
treated in accordance with and complying to the standards of the
Agencies having regulatory jurisdiction over such matters, all
consistent with the design criteria as set forth within previously
approved plans and specifications governing the construction of
existing water treatment plant facilities. Utility represents to
Village that the quality of the water produd~ emanating from said
treatment plant presently complies with existing regulations and
standards consistent with said approved design. Water service
shall be delivered to Village at the "point of delivery" as herein-
after set forth, all to be at the master meter installed by Village,
under supervision of Utility, for the purpose of bulk sale flow
measurement. Utility further agrees that during the life of this
Agreement, said water quality shall be maintained in compliance with
the criteria of the regulatory agencies having jurisdiction thereof.
2. INTERCONNECTING FACILITIES AND POINT OF DELIVERY -
Village agrees that it will cause to be designed and constructed, at
Village's own cost and expense, extensions to its existing system
designed to bring its lines and facilities to a point of intercon-
nection with the mains of Utility at Old Dixie Highway and Indian-
town Road, as set forth in Exhibit A. The Village shall have sole
and exclusive ownership of the lines and master meter serving the
Village, however, as further set forth herein the Utility shall be
responsible for maintenance, operation and repair of said extension
up to and including the "point of delivery of service" and shall holc
Village harmless from any damage, claim or suit arising from Utility
maintenance of said extension. Further, Utility agrees to reimburse
Village for any funds received by Utility from persons interconnect-
ing with said service line for service from Utility, for that person
hydraulic share of the use of the line. An engineer's drawing of
the route of the extension and size of pipe has been attached hereto
and marked Exhibit "A". Utility shall be advised of such plans
and shall be furnished with copies of the same prior to construction
and shall have the right of approval thereof for all portions
of such design relating to proposed construction south of the
Loxahatchee River Bridge. Such right of approval, however, shall
be limited to matters of design, particularly with regard to
materials, interconnection and metering, having a possible detriments
effect upon the system presently installed and operated by Utility.
Village shall have the right to decide and specify its own route to
JONNSTON the point of interconnection, as well as the kind and type ofmateris
$A99ER 6 RANDOLPH
1110 HARVEY BUILDING
WE9T PALM BEAD N, PLA.
39402
.2 -
. .
used (subject to Utility's right of prior approval), including
standards of installation. Utility shall not have the right to
inspect the construction of Village's extension, located north of
the Loxahatchee River Bridge, provided however, that Utility shall
have the sole right to inspect and supervise all construction south
of said Bridge and the interconnection of facilities and the install
tion and hookup of the measuring device. It shall be the responsi-
bility of Village to construct its facilities in a timely fashion
pursuant to other provisions of this agreement.
Notwithstanding that it is Village's obligation to construc
new transmission mains to the point of interconnection as described
(herein, the parties agree that the."point of delivery" shall be that
point on the discharge side of the master meter located adjacent to
the south approach to the Loxahatchee River Bridge. Said "point of
delivery" of service may be further defined as the point at which
Village assumes responsibility for receipt of the product and contro
'.thereof. Utility shall be responsible for maintenance, operation
and repair of all lines up to and including the "point of delivery"
of service, and Village shall be responsible for maintenance,
ioperation and repair of all mains and facilities on its side of
(the "point of delivery" of service.
Utility shall be responsible for the maintenance of the
JOHNSTON
S ASSER Q RANOOLPH
1113 HARVEY BUILDING
WEST PALM BEACH. FLA.
33402
master meter, but the cost of said meter, maintenance or repair,
shall be billed separately by Utility to Village. Subsequent to
the execution of this Agreement, and at such time as the particular
type and manufacture of the master meter has been identified, the
engineers for Village and Utility shall mutually decide upon and
specify a program for maintenance and accuracy recalibration. Said
program for maintenance and recalibration shall then be adopted by
Utility, who will be responsible for the performance thereof. Costs
necessarily incurred in such maintenance, recalibration and~epair
program shall be borne by the Village, as consumer, and as indicated
herein, shall be billed periodically by Utility. to Village.
-3 -
3. PRESSURES AT "POINT OF DELIVERY" - Utility agrees that
it will maintain not less than 40 psi pressure as measured at the
input side of the master meter, furnished by Village. Utility
agrees to make such modifications to its high service pumping
facilities as may, in the future, be required in order to maintain
said minimum pressure. The parties recognize that the pressures
and quantity flows expressed herein are based upon constant factors
which anticipate that Village will receive minimum or maximum
quantities of water at a reasonably uniform rate of flow during a
24 hour period. It sha1.1 be the continuing responsibility of
(Village to store and repump the water received from Utility as may
be required for Village's own system distribution needs.
4. QUANTITIES - Utility agrees to furnish not more than
2 million gallons of potable water per day through the meter at the
"point of delivery" for the full term of this Agreement and in
accordance with the "Description of Service" set forth above. Said
quantity flow is expressed herein as an average daily flow, averaged
over a period of 365 days next ensuing after the commencement of
service, or the date of "service availability", in accordance with
provisions hereinafter set forth. Utility shall not be required to
furnish a quantity of water greater than 2.25 million gallons per
day average for any 30 day period (peak month), neither shall
Utility be obligated to provide greater than 2.25 million gallons
per day as the total amount delivered in any one 24 hour period
(peak day).
Utility agrees to continually make available to Village,
the quantities of water set forth herein, notwithstanding that
Village's obligation to take and/or pay for quantities of potable
water are limited to the provisions of that section of this Agree-
ment entitled "Guaranteed Revenues".
5. RATES - Utility has established a rate schedule for
JOHNBTON
$ASBER B RANOOLPH
II73 HARVEY BUILDIND
WEST PALM BEACH. FLA.
99402
bulk water service and such schedule shall be filed with the Florida
Public Service Commission in the form of a new tariff category.
Such tariff sets forth the rates and rate computation governing the
- ~~
charges to be made and billed by Utility to Village on a monthly
basis for services rendered pursuant to the terms of this Agreement.
The parties recognize the jurisdiction of the Florida Public Service
Commission over the rates and charges of Utility and the approval of
said agency of the rates referred to herein are a condition precedent
to the final acceptance of this Agreement. A copy of tariff page
no. 23.3 is attached hereto as Exhibit "B" and made a part hereof
as if fully set forth in the body of this Agreement.
Nothing herein is intended to limit the power or ability
JOHNSTOn
S AS SER 6 ftANDOLPH
1113 HARVEY BUILDING
WEST PALM BEACH, FLA.
33402
of Utility to alter, amend or revise tariff page no. 23.3 and/or its
schedule of rates for bulk water service. Notwithstanding that
Utility reserves the right to alter, amend, modify or substitute
during the term of this Agreement, rate schedules or tariffs pro-
viding for rates for bulk water service, either higher or lower
than those set forth in tariff page no. 23.3 attached hereto as
Exhibit "B", Utility agrees that any such proposed revision in
rate shall be subject to rate proceedings and to public hearing
under the authority of the Florida Public Service Commission.
Utility's judgment, decision or application regarding matters of
rate shall at all times be based upon considerations of the cost
of operating its water system, its requirements to maintain ade-
quate coverage on its indebtedness, to preserve and protect its
credit standing in the financial community, and to properly equate
charges for services amongst classes of consumers, both for retail
and bulk sale services. In any proceeding involving a request for
increased rate,. Utility shall be obligated to present a comparison
of cost of bulk sale service during a base 6 month period next en-
suing after interconnection with Village, and a similar 6 month
period preceding the application for rate increase. Such comparison
shall identify and compare cost of power, chemicals, labor and
interest, since such elements shall be deemed to be the primary
justification for rate change. Village shall have the right of
full participation in any public hearing or hearings at which
revisions to the then existing bulk sale water rates are to be
considered.
~ 5 ~
6. GUARANTEED REVENUES-AND- MINIMUMS - The parties recog-
nize and acknowledge that the commitment, on the part of Utility,
to provide bulk water service to Village, and the general require-
ment ultimately upon Utility to expand and/or replace treatment
plant facilities allocated for the purpose of providing service
to Village herein, together with Utility's requirement to support
costs and indebtedness allocable to the service referred to in
this Agreement, requires that Utility impose upon the purchasers of
bulk sale service, an obligation to take and/or pay for, minimum
quantities of potable water service, whether or not such services
are actually drawn or used by said bulk sale purchaser. Accordingly
and in order to induce Utility to enter into this Agreement, Village
agrees and guarantees to commence payment for the quantities of
potable water service as hereinafter set forth.
Commencing with the date of "availability of service" as
JOHNBTON
$ABBER & RANDOLPH
IIIB HARVEY BUILDING
WEST PALM BEAD H. PLA.
93402
that term is hereinafter defined, Village shall be obligated to
receive and/or pay for a minimum of 547,500,000 gallons of water
(1.50 million gallons per day times 365 days) during the next
year ensuing and commencing with the date of availability of
service. During the second year commencing one year after date of
"availability of service" Village shall be obligated to receive and/
or pay for a minimum supply of water equal to the preceding year's
average annual requirements, but in no event shall said required
amount be less than an annual average of 1.5 million gallons per
day as above stated, or, more than an annual average of 1.6 million
gallons per day (584,000,000 gallons). During the third year and
all years subsequent thereto, during the life of this agreement,
the Village shall be obligated to receive and/or pay for a minimum
supply of water equal to the preceding year's average annual require
meats, but in no event shall said required amount be less than an
annual average of 1.5 million gallons per day or more than an annual
average of 1.75 million gallons per day (638,750,000 gallons of orate
',yearly). The parties recognize that the purpose of expressing
minimum quantities on an annual basis is to permit Village to
-~-
average its annual requirements during periods of lower daily demand
(wet season), and higher daily demand (dry season).
Each month during the term of this Agreement, Utility shall
bill Village for a monthly quantity equal to one-twelfth of the
annual minimum plus any additional water used over the minimum.
Village shall be required to pay for such monthly quantity when
billed. In the event that Village has actually received a quantity
of water which is less than the aforesaid stated monthly minimum,
then, and in that event, Village shall be entitled to carry over any
unused but paid for quantity of water into a subsequent month within
the same service year where usage by the Village exceeds the said
monthly minimum quantity. Conversely, the Village's excess usage
above the minimum in any month of the same service year, resulting
in a monthly payment in excess of the minimum, may be carried
forward to offset minimum charges for water in a subsequent month
during the same service year in which Village has used less than
the minimum quantity of water. It is the purpose of this formula
to adjust monthly usages within the same service year $o as to
.allow Village to pay only for water actually received, provided that
on said annual basis, Village will have paid for not less than those
.costs equating to the total annual minimum quantities set forth
herein.
The requirement upon Village to pay such guaranteed
(revenues shall continue unlimited and unabated during the term of
(this Agreement, except as hereinafter set forth.
7. AVAILABILITY OF SERVICE - The parties agree that servi
JOHNSTON
S ASSER R RANDOLPH
II15 HARVEY BUILDING
WEST PALM BEACH. FLA.
99602
by Utility to Village shall have been deemed to be available on
June 1, 1977, however, in no event shall the Utility be responsible
for supplying water or the Village be responsible for receiving
water by said date if said parties have moved expeditiously toward
completing their respective facilities by the aforementioned date
and are precluded from same by forces outside their control. Servic
availability shall be deemed to occur on any date subsequent to
the signing of this Agreement, but earlier than June 1, 1977, in
~,~
the event that actual interconnection between Village's extended
facilities and Utility's facilities at the "point of delivery" shall
have occurred. In the event such interconnection occurs prior to
June 1, 1977, then Village's obligation to take and/or pay for ser-
vices shall commence on said earlier date and such date shall further
become the commencement date for the first year of service.
The term "service availability" as used herein shall be
defined as the continuing readiness and ability of Utility to pro-
vide service at the "point of delivery" of service in the required
gallonage flow of potable water as provided for herein, and in
accordance with the other items set forth in this section.
8. TERM - This Agreement shall be for a term of thirty
(30) years, commencing on the date of "Sex~ic~ avai'bility", being
or later `- r _.i ~p
June 1, 19??, or such earlier date, in acco`~dance with the terms of
this Agreement. Utility hereby grants to Village an option to
terminate this Agreement at the end of five years after the date
of service availability, provided that Utility has not conveyed and
transferred its assets to a governmental entity and the Utility and
its assets remain in the investor owned category, and further pro-
vided that the Village determines that it has an adequate supply of
water to continue to servie its then existing customers.
In the event the Utility continues to be privately owned
and the Village does not exercise its option to terminate five
years after the date of service availability and this Agreement
continues, Utility grants to Village another five-year option to
terminate which will be operative ten years after the date of service
availability under the same terms and conditions set forth above for
the first five-year option.
In the event the Utility is privately owned on a date fou
years after the date of service availability then the Village shall
be obligated to furnish Utility with a one-year notice of termination
of service to be effective at the conclusion of the fifth year of
such service. Similarly, in the event the first five-year option
is not exercised and Utility is privately owned on a date nine years
after date of service availability, the Village shall furnish Utility
JOHNSTON
BASHER B RANDOLPH
IIIS HARVEY BUILDING
WEST PALM 9EAC H. RLA.
33402
- ~-
. /
with a one-year notice of termination to be effective at the con-
clusion of the tenth year of such service. Such right of early
termination shall be solely at the option of the Village and Utility
herein shall not have a corresponding right to alter the basic term
of this Agreement. Such option of the Village shall be limited
solely to the options expressed herein, and if the Village elects
not to exercise its option to limit the term of this Agreement to
five years or ten years, as above stated, then no subsequent option
shall exist in the Village and the term of .this Agreement shall
continue to the 30th year as hereinabove set forth.
9. INCREASED SERVICES - The parties recognize that it may
be the desire of the Village to seek from Utility, an increase in
the amount of service to be furnished by Utility beyond the minimum
and maximum levels set forth in this Agreement.
Utility agrees that it will, upon proper notice, expand its
treatment facilities so as to provide for the water production and
treatment of up to 8 million gallons per day of potable water
allocable pursuant to the terms of a renegotiated Bulk Sale Agreemen
to the Village based upon its then current requirements, including
but not limited to the requirements to pay connection or equivalent
rapacity charges. (No such connection or equivalent capacity charge
shall be applicable for the 2 million gallons per day capacity
represented by this Agreement.) The Village may request service
increases in a series of incremental levels, but at no time shall
Utility be required to increase levels of service beyond the maximum
established herein of less than 1 million gallons per day incrementa
increase.
Although it shall be the responsibility of Utility to
JOHNSTON
SASSER & RANDOLPH
1113 HARVEY BUILDING
WEST PALM BEACH. FLA. '
33402
provide, at its own cost and expense, raw water supply and treatment
facilities to accomodate increased service to the Village, it is
recognized that a period of up to 18 months may be required in order
to allow Utility to react to a request of the Village by undertaking
construction designed to expand its raw water and treatment facilities.
tillage, therefore, agrees to provide Utility with not less than 18
I
n
the "lead time" prior to any date on which the Village seeks
ual commencement of increased service.
Village further recognizes that Utility maintains a pol-
icy of allocating the cost of main transmission lines to the consumer
or consumers requesting water service or benefiting therefrom. It
is further recognized that the currently proposed interconnection
of facilities to be constructed by the Village, at its cost and
expense, contains hydraulic litgitations which may not permit the
delivery of service beyond the maximums set forth herein without
further modification. At any time which the Village may request
increased service, the Village shall further be obligated to pay
the cost of construction of supplemental transmission mains required
as an integral part of the delivery of such increased service. The
Village, as a consumer of increased service, shall be responsible
to defray only such portion of the cost of new transmission facili-
ties as may be hydraulically allocable to the requirements of the
.Village and its service area. In the event Utility, or its succes-
sors and assigns, shall elect to construct new water transmission
mains of a size larger than those hydraulically required by the Vil-
lage, then the cost of such new mains shall be divided, hydraulicall;
amongst those consumers benefiting therefrom, resulting only in
the allocable fair share cost of such mains being attributed to
the Village.
10. ASSIGNMENT - The parties hereto agree that Utility
JOHNSTON
SASSER Q RANDOLPN
1113 HARVEY BUILDING
WEST PALM BEACH, FLA.
93402
may assign this Agreement at any time subject to the written consent
of the Village, which consent shawl not be unreasonably withheld.
In the event of such assignment, the assignee shall be bound by the
terms and conditions of this Agreement. In the event assignee is
an entity which is not bound by the authority of the Florida Public
Service Commission, it nevertheless shall be guided by the terms of
Paragraph 5 of this Agreement and any increase in rates shall be
related strictly to the actual increase in cost to Utility to pro-
vide water under this Agreement. Nothing herein shall preclude tYte
Village from assigning this contract to any/ enntity which shall agreE
T/ . : /_
;operform the obligations set forth herein. \~;~
-10-
11. FORCE MAJEURE - Any temporary or continuing delay in
the construction or interconnection of the facilities described here-
in which delays the date of service availability herein described,
in the part of the Village caused by an act of God, fire, strike,
casualty, major maintenance work, breakdown of or injuries to machin-
pumps or pipelines, civil or military authority, insurrection,
riot, inability to obtain necessary permits, licenses, easements,
financing, or grants of authority necessary to the construction
thereof, or other causes of the same kind and nature as enumerated
herein which are outside the control of the Village shall not con-
stitute a breach of this Agreement on the part of the Village and
Village shall not be responsible under the terms of this Agree-
t in the event of such occurrences.
12. SAVINGS CLAUSE - In the event that any of the terms
or provisions of this Agreement shall be subsequently deemed to be
illegal by a court of competent jurisdiction, then this Agreement
shall be modified so as to cure such illegality and all other pro-
visions, terms and conditions of this Agreement shall remain in
full force and effect.
13. NOTICE - Each party shall furnish to the other, such
notice as may be, from time to time required, pursuant to the admin-
istration of this Agreement, and shall be in writing, posted in the
U.S. mail and addressed as follows:
To the Utility: Tri-Southern Utilities
7100 Indiantown Road - P.O. Box 1548
Jupiter, Florida
To the Village: Village of Tequesta - P.O. Box 3273
Tequesta, Florida
14. MODIFICATIONS OR AMENDMENTS - The parties declare
that this Agreement contains fully, all of the agreements between
the parties pertaining. to the subject matter contained herein. This
Agreement may be altered, modified or amended only in writing and
executed by each of the parties hereto.
15. PENALTY CLAUSE - In the event that Utility deliber-
JOHNBTON
S A69ER Q RANDOLPH
1115 HARVEY BUILDING
WEST PALM BEAC H, RLA.
99402
ately fails to supply water to the Village under the terms of this
Agreement, the Utility shall pay to the Village a liquidated amount
-11-
equal to the funds expended by the Village for all improvements and
expenditures necessary to extend the Village system to interconnect
pith the Utility. Further, in the event the supply of water to the
'illage is unreasonably cut off or in the event Utility fails to
~upply water to the Village for a period of time in excess of thirty
ays, the Village shall have the right to apply to the appropriate
urisdiction, i.e., the Circuit Court, the Health Department, or
he Public Service Commission, for the appointment of a receiver,
aid receiver to operate the plant and carry out other duties under
his Contract for such period of time necessary to insure the con-
inued supply of water to the Village under the terms of this Agree-
ent. These remedies shall not preclude any other remedies or dam-
ges available to the Village as a result of the breach of this
greement by Utility.
igned, sealed and delivered TRI-SOUTHERN UTILITIES COMPANY, INC.
'n the presence of:
~ .% Witness
~,
Witness y;~g_ h~r~s~a,.a-~
_~~.
igned, sealed and delivered
n the presence of: VILLAGE OF TEQUESTA
fitness BY ~ ~_
Ma
BY~
tness Village Clerk
JOHNBTON I
SASSER & RANDO LPN 1
IIIB HARVEY BUILDING
W EBT PALM BEACH, FLA.
33402
-12-
AMENDMENT TO BIILR BALE WATER 8ERVICE AGREEMENT
COME NOW the undersigned parties and hereby amend the Bulk
Sale Water Service Agreement, dated July 15, 1976, as amended, in
the manner and form referenced herein.
Paragraph 6, Guaranteed Revenues and Minimums, is hereby
amended to read as follows:
"6. GUARANTEED REVENUES AND MINIMUMS - The parties recognize
and acknowledge that the commitment, on the part of Utility, to
provide bulk water service to Village, and the general requirement
ultimately upon Utility to expand and/or replace treatment plant
facilities allocated for the purpose of providing service to
Village herein, together with Utility's requirement to support
costs and indebtedness allocable to the service referred to in this
Agreement, requires that Utility impose upon the purchasers of bulk
sale service, an obligation to take and/or pay for, minimum
quantities of potable water service, whether or not such services
are actually drawn or used by said bulk sale purchaser.
Accordingly, and in order to induce Utility to enter into this
Agreement, Village agrees and guarantees to commence payment for
the quantities of potable water service as hereinafter set forth.
Commencing with the date of "availability of service" as that
term is hereinafter defined, Village shall be obligated to receive
and/or pay for a minimum of 547,500,000 gallons of water (1.50
million gallons per day times 365 days) during the next year and
each year thereafter during the life of this agreement.
In the event, however, that the Village receives in any one
year an amount of water annually which results in an annual average
of 1.75 MGD then, in the year following such year of usage and each
year thereafter, the Village shall be obligated to receive and/or
pay for a minimum supply of water equal to 1.75 MGD or 638,750,000
gallons of water yearly. The minimum obligation of the Village
shall remain 1.5 MGD average or 547,500,000 gallons of water
annually unless and until such time as the Village's actual annual
usage is 1.75 MGD or 638,750,000 gallons per year. The parties
recognize that the purpose of expressing minimum quantities on an
annual basis is to permit Village to average its annual
requirements during periods of lower daily demand (wet season), and
higher daily demand (dry season).
The parties hereto will, by separate agreement, provide for
the use by either system of emergency quantities of water in the
event of equipment or mechanical failures in plants or systems
making the supply of potable water inadequate, at minimum levels;
to provide for the health, safety and welfare or either system's
consumers. Such emergencies, and the quantities of water furnished
by Jupiter to Tequesta during the limited period of such emergency,
shall not be counted in Tequesta's annual average consumption
figures notwithstanding that the water furnished during the
emergency was billed by Jupiter to Tequesta.
Each month during the term of this Agreement, Utility shall
bill Village for a monthly quantity equal to one-twelfth of the
annual minimum plus any additional water used over the minimum.
2
Village shall be required to pay for such monthly quantity when
billed. In the event that Village has actually received a quantity
of water which is less than the aforesaid stated monthly minimum,
then, and in that event, Village shall be entitled to carry over
any unused but paid for quantity of water into a subsequent month
within the same service year where usage by the Village exceeds the
said monthly minimum quantity. Conversely, the Village's excess
usage above the minimum in any month of the same service year,
resulting in a monthly payment in excess of the minimum, may be
carried forward to offset minimum charges for water in a subsequent
month during the same service .year in which Village has used less
than the minimum quantity of water. It is the purpose of this
formula to adjust monthly usages within the same service year so as
to allow Village to pay only for water actually received, provided
that, on said annual basis, Village will have paid for not less
than those costs equating to the total annual minimum quantities
set forth herein.
The requirement upon Village to pay such guaranteed revenues
shall continue unlimited and unabated during the term of this
Agreement, except as hereinafter set forth."
3
IN WITNESS WHEREOF,. the parties have signed this Amendment to
Bulk Sale Water Service Agreement, this /~~day of -may' /, ,
1993.
Signed, sealed and delivered
i~n~ the presence of
ss
s
VILLAGE OF TEQUESTA
By ~~-~-~J ~+
W1 es
witness
JCR\13153-03\BULKLIATE.AMD
TCT TT AL7 TTTTIT TTITI
By
By
4