AGENDA MEMORANDUM
Meeting Date: October 12, 2009
From: Raymond S. Sharp, Director, Environmental Services/Public Works
Subject: Ordinance establishing a new water rate schedule
Staff Recommendation:
Staff recommends adoption of the ordinance establishing a new water rate schedule, to become effective November 1, 2009.
Analysis:
During the Budget Workshops, the City Commission directed that a rate study be performed on the water and wastewater utility for the purpose of determining revenue sufficiency to meet the increased charges for depreciation and Other Post Employment Benefits (OPEB). The outcome of that study showed that no rate increase was necessary for the wastewater fund. However, the water fund would require a 6% rate increase, in addition to the programmed annual adjustments which were established by previous ordinance. In a subsequent Budget Workshop, this result was discussed with the Commission and staff recommended that the increase be phased in over two years at 3% each year. The proposed rate schedule in this ordinance implements that recommendation, and establishes rates effective November 1, 2009 and November 1, 2010.
This rate design incorporates the following features:
· Does not increase the customer charge for Residential, Master Meter, Commercial or Fire Sprinkler services;
· Does not increase the lowest tier of Residential Consumption Charges;
· Increases all irrigation rates;
· Is structured to expect 7% conservation effect of the rates.
This rate design continues to offer a “life-line” rate to our lowest-volume customers. Many of these low water volume consumers are households on limited or fixed incomes. Except for the programmed annual adjustments, this customer base will see no increase from this rate design.
Since the rate study was to determine and establish overall revenue sufficiency, the revenue not realized by implementation of the life-line rate approach must be spread over other rate classes and tiers; in fact, this rate structure does that. The overall effect is that the conservation tiered rate structure is somewhat steepened. It can reasonably be expected this will cause some additional conservation of water usage and concomitant reduction in revenue. Based upon literature, our practices established in previous rate studies and our experience with our customer base, we anticipate an approximate 7% conservation effect – that is, we expect the increased rates in the higher tiers will cause increased conservation of water, which is estimated to produce an approximate 7% reduction in revenue. This rate design accommodates that 7% and produces sufficient revenues to meet the requirements of the rate study.
Options:
1. Adopt the water rate ordinance as presented; or,
2. Such alternative action as the Commission may deem appropriate.
Fiscal Impact:
If adopted, this ordinance will adjust the water rates to produce an overall 3% increase in water revenues in FY 2009-2010, and an overall 3% increase in water revenues in FY 2010-2011. Taken together, these will provide sufficient revenues to meet the requirements of the rate study.
Submission Date and Time: 10/23/2009 3:25 PM____
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Department: Environmental Services Prepared by: R. Sharp Attachments: Yes X No ______ Advertised: ____Not Required ______ Dates: __________________________ Attorney Review : Yes X No ____
_________________________________ Revised 6/10/04 |
Reviewed by: Dept. Head rss
Finance Dept. ________JB________
Deputy C.M. ___________________ Submitted by: City Manager ___________________ |
Account No. _________________
Project No. ___________________
WF No. ______________________
Budget ______________________
Available _____________________ |
ORDINANCE NO. 09-_____
AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, AMENDING SECTION 22-211 OF THE CODE OF ORDINANCES PERTAINING TO WATER SERVICE RATES; ESTABLISHING A NEW RATE SCHEDULE FOR WATER; PROVIDING FOR RATES TO BE EFFECTIVE NOVEMBER 1, 2009; PROVIDING FOR RATES TO BE EFFECTIVE NOVEMBER 1, 2010; PROVIDING FOR RATES INSIDE AND OUTSIDE THE CITY LIMITS; PROVIDING FOR CONFLICTS; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA, that:
SECTION 1.
Section 22-211, of the Code of Ordinances of the City of Leesburg, Florida, is hereby amended in its entirety to read as:
(a) Water conservation service rate:
(1) Inside The City Water Rates (CCF):
Line Proposed Rates Proposed Rates
No. Description Effective 11/01/2009 Effective 11/01/2010
Customer Charge Residential, Master-Meter, Commercial, and Sprinklers
1. All Meter Sizes $7.70 $7.85
Customer Charge Irrigation
2. All Meter Sizes $4.03 $4.31
Consumption Charge (Per 1 CCF = 100 Cubic Feet = 748 Gallons)
Consumption Charge Potable Water Residential
Block Rates (Per CCF)
3. BAS1 (0 – 6) $0.64 $0.65
4. BAS2 (7 – 12) $0.77 $0.82
5. BAS3 (13 – 21) $1.07 $1.14
6. BAS4 (22 – 45) $1.45 $1.55
7. BAS5 (Over 45) $2.66 $2.84
Consumption Charge Potable Water Commercial
Block Rates (Per CCF)
8. All CCF (No Cap) $1.03 $1.10
Consumption Charge Irrigation Residential
Block Rates (Per CCF)
9. BAS1 (0 – 9) $1.07 $1.14
10. BAS2 (10 – 33) $1.45 $1.55
11. BAS3 (Over 33) $2.66 $2.84
Consumption Charge Irrigation Commercial and Common Area
Block Rates (Per CCF)
12. BAS1 (0 – 33) $1.07 $1.14
13. BAS2 (Over 33) $1.45 $1.55
(2) Inside The City Water Rates (TGAL):
Line Proposed Rates Proposed Rates
No. Description Effective 11/01/2009 Effective 11/01/2010
Customer Charge Residential, Master-Meter, Commercial, and Sprinklers
14. All Meter Sizes $7.70 $7.85
Customer Charge Irrigation
15. All Meter Sizes $4.03 $4.31
Consumption Charge (Per 1 TGAL = 1000 Gallons)
Consumption Charge Potable Water Residential
Block Rates (Per TGAL)
16. BAS1 (0 – 4) $0.86 $0.88
17. BAS2 (5 – 8) $1.02 $1.09
18. BAS3 (9 – 15) $1.43 $1.53
19. BAS4 (16 – 33) $1.94 $2.07
20. BAS5 (Over 33) $3.56 $3.80
Consumption Charge Potable Water Commercial
Block Rates (Per TGAL)
21. All CCF (No Cap) $1.38 $1.47
Consumption Charge Irrigation Residential
Block Rates (Per TGAL)
22. BAS1 (0 – 7) $1.43 $1.53
23. BAS2 (8 – 25) $1.94 $2.07
24. BAS3 (Over 25) $3.56 $3.80
Consumption Charge Irrigation Commercial and Common Area
Block Rates (Per TGAL)
25. BAS1 (0 – 25) $1.43 $1.53
26. BAS2 (Over 25) $1.94 $2.07
(3) Outside The City Water Rates (CCF):
Line Proposed Rates Proposed Rates
No. Description Effective 11/01/2009 Effective 11/01/2010
Customer Charge Residential, Master-Meter, Commercial, and Sprinklers
27. All Meter Sizes $9.63 $9.81
Customer Charge Irrigation
28. All Meter Sizes $5.04 $5.39
Consumption Charge (Per 1 CCF = 100 Cubic Feet = 748 Gallons)
Consumption Charge Potable Water Residential
Block Rates (Per CCF)
29. BAS1 (0 – 6) $0.80 $0.81
30. BAS2 (7 – 12) $0.96 $1.03
31. BAS3 (13 – 21) $1.34 $1.43
32. BAS4 (22 – 45) $1.81 $1.94
33. BAS5 (Over 45) $3.33 $3.55
Consumption Charge Potable Water Commercial
Block Rates (Per CCF)
34. All CCF (No Cap) $1.29 $1.38
Consumption Charge Irrigation Residential
Block Rates (Per CCF)
35. BAS1 (0 – 9) $1.34 $1.43
36. BAS2 (10 – 33) $1.81 $1.94
37. BAS3 (Over 33) $3.33 $3.55
Consumption Charge Irrigation Commercial and Common Area
Block Rates (Per CCF)
38. BAS1 (0 – 33) $1.34 $1.43
39. BAS2 (Over 33) $1.81 $1.94
(4) Outside The City Water Rates (TGAL):
Line Proposed Rates Proposed Rates
No. Description Effective 11/01/2009 Effective 11/01/2010
Customer Charge Residential, Master-Meter, Commercial, and Sprinklers
40. All Meter Sizes $9.63 $9.81
Customer Charge Irrigation
41. All Meter Sizes $5.04 $5.39
Consumption Charge (Per 1 TGAL = 1000 Gallons)
Consumption Charge Potable Water Residential
Block Rates (Per TGAL)
42. BAS1 (0 – 4) $1.08 $1.10
43. BAS2 (5 – 8) $1.28 $1.36
44. BAS3 (9 – 15) $1.79 $1.91
45. BAS4 (16 – 33) $2.43 $2.59
46. BAS5 (Over 33) $4.45 $4.75
Consumption Charge Potable Water Commercial
Block Rates (Per TGAL)
47. All CCF (No Cap) $1.73 $1.84
Consumption Charge Irrigation Residential
Block Rates (Per TGAL)
48. BAS1 (0 – 7) $1.79 $1.91
49. BAS2 (8 – 25) $2.43 $2.59
50. BAS3 (Over 25) $4.45 $4.75
Consumption Charge Irrigation Commercial and Common Area
Block Rates (Per TGAL)
51. BAS1 (0 – 25) $1.79 $1.91
52. BAS2 (Over 25) $2.43 $2.59
(b) Deposits for each account shall be required as set forth more particularly in section 22-181 of this Code.
(c) Reconnection charge, when service is cut off for nonpayment of bill, and when connection service is requested to be performed after normal business hours, charges will be imposed as provided in the utility service fee schedule.
(d) Service will not be turned on after it is cut off for nonpayment until the account is paid current and cut-on charge is paid. In those installations which have fire protection systems which are operated by city water, there shall be charged, in addition to the foregoing charge, two dollars ($2.00) per month per inch diameter of service pipe serving the installation.
(e) Where water service charges are measured, in whole or in part, by a master meter, the availability charge on the master meter shall be the number of units served by the master meter times the rate per month availability charge. All consumption on the master meter shall be billed at the charge per one hundred (100) cubic feet, as applicable, plus all other charges. The master meter shall be classified to the rate schedule which yields the highest revenue consistent with the applicability clauses of the rate classes. Each and every user served by the master meter may be billed, at the discretion of the city, for the fixed charge assessed for each user within the particular user's service classification, and the person or entity in whose name the master meter is registered on the city's records shall in such event be billed for the variable charge assessed for the service being provided. As used in this subsection, the following terms shall have the meanings indicated:
(1) Master meter: Shall refer to a meter measuring the service provided to two (2) or more occupancy units being served by a single meter.
(2) Occupancy unit: Shall refer to that portion of any commercial establishment, single- or multi-unit residential building, or trailer, mobile home, manufactured housing, or recreational vehicle park, or marina which is set apart from the rest of such facility by clearly determinable boundaries, as described in the rental, lease or ownership agreement for such unit, or in the absence of such an agreement, where that portion of the facility is clearly set apart from the rest of the facility in a manner which evidences an intent to render the unit suitable for occupancy as a residential, commercial or other space as a discrete unit, separate and apart from the use or occupancy of other units within the same facility.
(3) User: Shall refer to the occupant(s) of any individual occupancy unit served by a master meter.
(4) Fixed charge: Shall refer to the minimum charge imposed by the city during a billing period, in the particular customer's service classification, for the availability of the service, if no service is actually used by the customer in a given billing period.
(5) Variable charge: Shall refer to that portion of the bill for the utility service which is assessed in addition to the fixed charge and which is based on actual usage in a given billing period.
SECTION 2.
All ordinances or parts of ordinances which are in conflict with this ordinance are hereby repealed, to the extent necessary to alleviate the conflict, but shall continue in effect insofar as they are not in conflict herewith, unless repeal of the conflicting portion destroys the overall intent and effect of any of the conflicting ordinances, in which case those ordinances so effected shall be hereby repealed in their entirety.
SECTION 3.
If any portion of this ordinance is declared invalid or unenforceable, and to the extent it is possible to do so without destroying the overall intent and effect of this ordinance, the portion deemed invalid or unenforceable shall be severed herefrom and the remainder of this ordinance shall continue in full force and effect as if it were enacted without including the portion found to be invalid or unenforceable.
SECTION 4.
This ordinance shall become effective upon passage.
PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held on the ______ day of ______________, 2009.
THE CITY OF LEESBURG
By: _______________________________
Mayor
ATTEST:
_______________________________________
City Clerk