ManateeCountyGovernmentWorksessionJanuary20,2015

Utilities Planning & Policy

1

dvollmerText BoxSanitary Sewer Collection System for New Service Areas

Whatourprocesshasbeen

Issuesthatprocesscreates

Fundamentalprinciplesunderlyingproposedsolutions

2DS

Proposedsolutions(recentexecutedLDAshaveincorporatedthese)ChangetoFIFschedule,presentationofthatstudy

Processchanges codeofordinancesUpdateourMasterPlans

3DS

CurrentProcess

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200,000

250,000

300,000

350,000

400,000

450,000

500,000

UnincorporatedPopulationEstimateAllCountyPopulationEstimate

JO

EstablishesWater&SewerServiceAreasBasedonengineeringReflectedonFutureLandUseMap

Large serviceareaVacant/aglands

6JO

JO

8JO

Addzoomlikeprevious.addlinestopreviousgraphic

SM

Collection/DistributionSystems Computermodelplanforutilitiesbuildoutofservicearea

Forcemainroute/location,pipesize,Masterpumpstationlocations,etc.

FutureMasterliftstations Intendedtooptimizecapitalinvestmentforlongterm

10SM

11

CurrentDevelopmentProcess Developer:

Responsibleforextendingutilityservicetotheir projects Designsnewlines&stationssizedtotheir needs

County: Participatesinupsizingnewlines&stationssizeforconsistencyw/masterplan(buildout) Builditrightthefirsttimephilosophy Minimizesduplicativeconstructionprojects Multiplelineswithintherightofway notdesirable

12SM

CurrentDevelopmentProcess Initialdevelopmentin areaswherefutureforcemaindoesnotexistbearssignificantinitialcostinstallingtheline.

Countybearstheremainderoftheabovecostwiththeinitialdevelopment

Subsequentdevelopmentbearsverylittlecostornocostandbenefitsfromaboveinstallation.

13SM

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Issues Current Process

SM

Multipleapprovedprojectsrequestingutilityservicenow

Developmentprojectsoriginallyapprovedin2000s Requireupsizing requiresCountyinvestment ROWmayormaynotnotexistforlineextensions MasterPumpStationsnotbuilt

16SM

Newdevelopmentprojectsrequestingserviceinareasrequiringsignificantlineextensions

Constructionofnewlinestoofarinadvanceofneeds(customers)createsoperationalissues

17SM

ExistingFacilityInvestmentFee(FIF)Newplant,newcollectionsystems,newliftstations

ExistingFacilityInvestmentFeescheduleneedstobeupdatedtoreflecttheneedforlineextensions

18SM

Initialdevelopmentinareaswherefutureforcemaindoesnotexistbearssignificantinitialcostinstallingtheline.

19SM

Countybearstheremainderoftheabovecostwiththeinitialdevelopment BuilditrightthefirsttimeMultipleparallellines=operationalissues

Goingforward,theCountyneedstoaddressfundingforthisparticipation

20SM

AlternativeConnections SomedevelopmentsrequestingusingexistinglinesratherthanconstructingfuturelinescalledoutinMasterPlans(AlternativeConnections)

Lowerupfrontcosttodeveloper Takesawaycapacityofline increasescostslater

Evaluatedonacasebycasebasis21SM

AlternativeConnections Currentprocesshasnomeansofcapturingcountyscostofincorporatingalternativeconnectionstomeetthemasterplan

22SM

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Fundamental Principles

DS

Countyresponsibletooperateutilitiesinanefficientandfinanciallysoundmanner

UtilitiesisanenterprisefundFromsystemrevenuesNotmixedwithotherfunds

24DS

Ratepayerspayforoperationsandmaintenanceofexisting system

DevelopmentpaysforexpansionofthesystemviaFacilityInvestmentFees(FIFs)CountyusesFIFsforupsizing

25DS

GrowthshouldpayforgrowthPolicyoftheBoardofCountyCommissioners January2009adopted

26DS

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Recommendations

DS

UpdateFIFschedule

UpdateCodeofOrdinances

UpdateourMasterPlans

28DS

AdoptUpdatetoFacilityInvestmentFeeSchedule Covercostsassociatedwithimprovinginfrastructureindevelopingareas

Ensuresmasterplanapproachtosafeguardefficiencyofsystem

29DS

ReflectMasterPlans&consistencyofdevelopmentwithmasterplans

Feasibilityofextensions

Alternativeconnections

30DS

CreditstowardFacilityInvestmentFees

Continueagreementswithdevelopersasappropriate: Alternativeconnections Developmentprofferingcommitmentofimprovements,rightsofway,etc.

Extendedcapacityreservations

31DS

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Facility Investment Fees

Rob Ori, PresidentPublic Management

Resources Group, Inc.

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SupportPolicyof"GrowthPayingforGrowth" ExistingCustomersNotResponsibleforNewCapital

FavorableRateBenefit KeepsMonthlyUtilityRatesReasonable

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RecoverCapitalCostofCapacityAllocabletoNewUsers MustMeet"RationalNexus"ProvisionsDictatedbyCaseLaw,FloridaImpactFeeAct MustRelateCapitalExpenditurestoGrowth FeemustbeBasedonMostRecentandLocalizedData

35

FIFanalysisonlyencompassedwastewater ExistingFIFIncludesTwoPrimaryCapitalCostRecoveryComponents: IdentifiedasSystemCosts BenefitallUsers TreatmentandDisposalComponent(plants)

PrimaryTransmissionComponent(largelines&pumpstations)

36

ExistingFIFIncludesTwoPrimaryCapitalCostRecoveryComponents:(contd) DoesntIncludeonsiteCostsSpecificto

Development Manholes,LocalLiftStations,CollectionLines,

Laterals GenerallyDonatedasPartofDevelopment

Process AnalysisFocusedOnlyonPrimaryTransmission

ComponentofFee

37

"SystemBuyIn"Approach

TheMostEquitableMethod DeterminationofProRataCosttoServeNewEquivalentResidentialConnection(ERC) ERCRepresentsCapacityAllocatedtoaSingleFamilyResidence

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"SystemBuyIn"Approach

ConsideredOriginalCostofUtilityPlantConstructedandAvailabletoServeNewGrowth

ConsideredTodaysCostEstimatestoServeNewGrowth

ConsideredBuildoutPopulationEstimatestoDetermineERCsand"UnitCost"

39

LevelofService(LOS)=AllocatedCapacity(Flow)perERC

LOSAssumedat210gpd perERCtoDeriveUnitCost

40

NoChangeinFeeApplicationMethodology,JustAmountoftheFeeCharged FeeBasedonMeterSize LinkstoImpliedCapacityofCustomer BasedonMeterEquivalentsAmericanWaterWorksAssociation

ComparisonofExistingandProposedWastewaterFeesERC

FACTOREXISTING

FEEPROPOSED

FEEDIFFERENCE

STANDARD RESIDENTIAL CUSTOMER

1.00 $2,315 $3,027 $712

MULTI-FAMILYRESIDENTIAL (PER UNIT)

0.67 $1,580 $2,028 $448

COMMERCIAL VARIES BY METER SIZE

5/8-INCH METER 1.00 $2,315 $3,027 $712

1-INCH METER 2.50 $5,788 $7,568 $1,780

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UpdateFIFschedule

UpdateCodeofOrdinances

UpdateourMasterPlans

42DS

dvollmerText BoxDisposal of Surplus County Property