AGENDA MEMORANDUM

 

 

Meeting Date:           July 11, 2011

 

From:                          Raymond S. Sharp, Environmental Services/Public Works Director

 

Subject:                      Ordinance amending water rates

 

 

Staff Recommendation:

Staff recommends adoption of the ordinance amending water rates.

 

Analysis:

The St. Johns River Water Management District issued a renewal of CUP # 94 to the city on November 16, 2010.  One complicating factor that arose during the renewal is that withdrawals from the Royal Highlands wellfield were shown to have an unacceptable impact on established Minimum Flows and Levels (MFL’s) for Lake Apshawa North and Lake Apshawa South.  These MFL’s have been violated within the period of historic record.  Under current CUP rules, under such conditions, no CUP can be issued which would result in further unacceptable impact.

 

In order to obtain a 20-year CUP, it was necessary to reduce the impacts of the Royal Highlands well fields on the MFL.  After performing extensive hydrogeologic modeling, it became apparent that only by reducing withdrawals from the Royal Highlands well fields could the unacceptable impacts on the MFL’s be eliminated, and the CUP issued.  The alternative would have been a short duration (2 – 3 year) CUP, reduced groundwater allocation, and a requirement for mitigation of the MFL effects.  None of those alternatives were acceptable to the City.

 

The Royal Highlands wellfield withdrawals are permitted to decrease in annual increments from 0.97 million gallons per day (gpd) in 2010, to 0.69 mgd in 2016 – 2030.  The allocation for 2011 is 0.88 mgd, and the allocation for 2012 is 0.80 mgd.  The withdrawals for 2010 were within limits.  Withdrawals through May, 2011 were 0.89 mgd, which, if continued, would cause a violation for 2011 and 2012.

 

Therefore, it becomes necessary to influence usage and incentivize a reduction in water conservation.  The proposed water rates increase the next to highest rate tier by a factor of two, and the highest consumption rate tier by a factor of three.  These rates apply to monthly usage greater than 16,000 gallons; monthly usage of less than 16,000 gallons is unaffected.  These rates are applied to all residential customers connected to the Royal Highlands water plant.  This includes all residences in Royal Highlands and in White Marsh.

 

In order to avoid additional demands, the ordinance also limits new connections to the lots presently platted for Royal Highlands and White Marsh.  No other new connections may be made to this system except as they may be approved by Resolution of the City Commission.

 

As further incentive for water reduction, the ordinance includes a provision that, should water withdrawals be within permitted limits for two full calendar years, the rates for the top two tiers may be reduced.  However, should withdrawals subsequently exceed the well field allocation; the rates will revert to the higher rate.

 

Options:

1.  Adopt the ordinance as presented; or,

2.  Such alternative action as the Commission may deem appropriate

 

 

Fiscal Impact

The intent of the ordinance is to reduce well field withdrawals, which means reduced demands.  Reduced demands will result in reduced revenues from the Royal Highlands and White Marsh customer base.  Initially, that reduction is estimated to be approximately 2 %.  Approximately two-thirds of customers (based upon 2010 usage) will not be affected by this rate change; the revenue stream from these customers will remain unchanged.  Of the remaining one-third, it is likely that some customers will choose to conserve water, and others will not.  It is not possible to reasonably estimate revenues from this group.

 

Submission Date and Time:    7/22/2011 5:24 PM____

 

Department: Environmental Services

Prepared by:  R. Sharp                     

Attachments:         Yes____   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes X   No ____

                                                 

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________


ORDINANCE NO.                                                

 

AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, AMENDING §22 – 211 OF THE CODE OF ORDINANCES PERTAINING TO WATER RATES, PROVIDING NEW RATE TABLES FOR CUSTOMERS CONNECTED TO THE ROYAL HIGHLANDS WATER TREATMENT PLANT; AMENDING SUBSECTIONS (a)(3) AND (a)(4) OF §22 – 211 TO EXCLUDE FROM THE RATE TABLES IN THOSE SUBECTIONS ANY CUSTOMERS CONNECTED TO THE ROYAL HIGHLANDS WATER TREATMENT PLANT; CREATING SUBSECTIONS (a)(5) AND (a)(6) OF §22 – 211 TO SPECIFY THE RATES FOR CUSTOMERS CONNECTED TO THE ROYAL HIGHLANDS WATER TREATMENT PLANT; LIMITING CONNECTIONS TO THE ROYAL HIGHLANDS WATER TREATMENT PLANT TO CONFORM TO THE WITHDRAWAL LIMITATIONS FOR THAT FACILITY IN THE CITY’S CONSUMPTIVE USE PERMIT; SETTING FOR LEGISLATIVE FINDINGS; REPEALING CONFLICTING ORDINANCES; AND PROVIDING AN EFFECTIVE DATE.

 

NOW THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA:

 

SECTION I.

 

The City Commission of the City of Leesburg, Florida, makes the following legislative findings with respect to the rates charged for water supplied by the City’s Royal Highlands Water Treatment Plant:

 

 

 

SECTION II.

 

§22 – 211(a) of the Code of Ordinances of the City of Leesburg, Florida, is hereby amended to read as follows:

 

(a)   Water conservation service rate:   

 

(1)   Inside the city water rates (CCF):   

 

TABLE INSET:

 

  Line No.     

  Description     

Rates  Effective  11/01/2009     

 Rates  Effective  11/01/2010   

   

Customer Charge Residential, Master-Meter, Commercial, and Sprinklers   

   

Meter Size   

   

   

1.   

ALL METER SIZES   

$7.70   

$7.85   

   

Customer Charge Irrigation   

   

   

Meter Size   

   

   

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 Residential Irrigation   

   

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 Commercial and Common Area Irrigation   

   

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):   

 

TABLE INSET:

 

  Line
No.     

  Description     

Rates  Effective  11/01/2009     

Rates Effective  11/01/2010   

   

Customer Charge Residential, Master-Meter, Commercial, and Sprinklers   

   

Meter Size   

   

   

14.   

ALL METER SIZES   

$7.70   

$7.85   

   

Customer Charge Irrigation   

   

15.   

ALL METER SIZES   

$4.03   

$4.31   

   

Consumption Charge (Per 1,000 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 excluding customers connected to the Royal Highlands Water Treatment Plant (CCF):   

 

TABLE INSET:

 

  Line No.     

  Description     

Rates  Effective  11/01/2009     

 Rates  Effective  11/01/2010   

   

Customer Charge Residential, Master-Meter, Commercial, Irrigation and Sprinklers   

   

Meter Size   

   

   

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 excluding customers connected to the Royal Highlands Water Treatment Plant (TGAL):   

 

TABLE INSET:

 

  Line
No.     

  Description     

Rates  Effective    11/01/2009     

Rates  Effective    11/01/2010   

   

Customer Charge Residential, Master-Meter, Commercial, and Sprinklers   

   

Meter Size   

   

   

40.   

ALL METER SIZES   

$9.63   

$9.81   

   

Customer Charge Irrigation   

   

   

Meter Size   

   

   

41.   

ALL METER SIZES   

$5.04   

$5.39   

   

Consumption Charge (Per 1 TGAL = 1000 Gallons)   

   

Consumption Charge (Per 1,000 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 Commercial and Common Area Irrigation   

   

   

Block Rates (Per TGAL)   

51.   

BAS1 (0--25)   

$1.79   

$1.91   

52.   

BAS2 (Over 25)   

$2.43   

$2.59   

 

(3)   Outside the city water rates only for customers connected to the Royal Highlands Water Treatment Plant (CCF):   

 


TABLE INSET:

 

 

  Line No.     

  Description     

    

 Rates  Effective  08/01/2011   

   

Customer Charge Residential, Master-Meter, Commercial, Irrigation and Sprinklers   

   

Meter Size   

   

   

27.   

ALL METER SIZES   

$9.81   

   

Customer Charge Irrigation   

   

   

28.   

ALL METER SIZES   

$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)   

$0.81   

30.   

BAS2 (7--12)   

$1.03   

31.   

BAS3 (13--21)   

$1.43   

32.   

BAS4 (22--45)   

$3.88   

33.   

BAS5 (Over 45)   

$10.65   

   

Consumption Charge Potable Water Commercial   

   

Block Rates (Per CCF)   

   

   

34.   

All CCF (No Cap)   

 

$1.38   

   

Consumption Charge Irrigation Residential   

   

Block Rates (Per CCF)   

35.   

BAS1 (0--9)   

$1.43   

36.   

BAS2 (10--33)   

$3.88   

37.   

BAS3 (Over 33)   

$10.65   

   

Consumption Charge Irrigation Commercial and Common Area   

   

Block Rates (Per CCF)   

   

   

   

   

38.   

BAS1 (0--33)   

$1.43   

39.   

BAS2 (Over 33)   

$1.94   

 

 

(4)   Outside the city water rates only for customers connected to the Royal Highlands Water Treatment Plant (TGAL):   

 


TABLE INSET:

 

  Line
No.     

  Description     

Rates  Effective    11/01/2010   

   

Customer Charge Residential, Master-Meter, Commercial, and Sprinklers   

   

Meter Size   

   

   

40.   

ALL METER SIZES   

$9.81   

   

Customer Charge Irrigation   

   

   

Meter Size   

   

   

41.   

ALL METER SIZES   

$5.39   

   

Consumption Charge (Per 1 TGAL = 1000 Gallons)   

   

Consumption Charge (Per 1,000 Gallons)   

   

   

Consumption Charge Potable Water Residential   

   

   

Block Rates (Per TGAL)   

42.   

BAS1 (0--4)   

$1.10   

43.   

BAS2 (5--8)   

$1.36   

44.   

BAS3 (9--15)   

$1.91   

45.   

BAS4 (16--33)   

$5.18   

46.   

BAS5 (Over 33)   

$14.25   

   

Consumption Charge Potable Water Commercial   

   

Block Rates (Per TGAL)   

   

47.   

All CCF (No Cap)   

$1.84   

   

Consumption Charge Irrigation Residential   

   

Block Rates (Per TGAL)   

48.   

BAS1 (0--7)   

$1.91   

49.   

BAS2 (8--25)   

$5.18   

50.   

BAS3 (Over 25)   

$14.25   

   

Consumption Charge Commercial and Common Area Irrigation   

   

   

Block Rates (Per TGAL)   

51.   

BAS1 (0--25)   

$1.91   

52.   

BAS2 (Over 25)   

$2.59   

 

If the withdrawals from the Royal Highlands Wellfield have been within limits established in Condition 24 of Consumptive Use Permit 94 for two consecutive full calendar years after the effective date of this Ordinance, the BAS4 rates shown in subsections (3) and (4) above, for customers connected to the Royal Highlands Water Treatment Plant only, as those rates may have been adjusted under §22 – 166 of this Code, shall decrease by 25%, and BAS5 rates shown in those same subsections (as adjusted under §22 – 166) shall decrease by 33%. However, if in any calendar year withdrawals exceed the limits of Condition 24, the BAS4 and BAS5 rates in those subsections shall revert to the higher rate for BAS4 and BAS5, computed based on the rates shown in those subsections as adjusted under §22 – 166 up to the time of the increase. 

 

No additional connections shall be made to the Royal Highlands Water Treatment Plant following the effective date of this Ordinance, except for the following:

 

(i)                 Lots within the following plats comprising the development Royal Highlands, which have never been connected to the Royal Highlands Water Treatment Plant before the effective date of this Ordinance: Plat Book 37, Page 3; Plat Book 43, Page 66; Plat Book 39, Page 32; Plat Book 40, Page 34; Plat Book 41, Page 49; Plat Book 44, Page 31; Plat Book 44, Page 91; Plat Book 46, Page 59; Plat Book 50, Page 30; and Plat Book 38, Page 16; all in the Public Records of Lake County, Florida.

(ii)               Lots within the plat of Whitemarsh, according to the plat thereof recorded in Plat Book 61, Page 22, Public Records of Lake County, Florida, which have never been connected to the Royal Highlands Water Treatment Plant before the effective date of this Ordinance.

(iii)             Such other connections as are approved by Resolution adopted by the Leesburg City Commission.

 

In all categories, for installations which have fire protection systems utilizing City water, whether or not metered, there shall be imposed a monthly availability charge, regardless of actual usage, in the amount of two dollars ($2.00) per inch diameter of service pipe serving the fire protection system.

 

SECTION III.

 

All ordinances or part 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 ordinance, in which case those ordinances so affected shall be hereby repealed in their entirety.

 

SECTION IV.

 

If any portion of this Ordinance is declared invalid or unenforceable, and to the extent that 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 the ordinance shall continue in full force and effect as if it were enacted without including the portion found to be invalid or unenforceable.

 


 

SECTION V.

 

This Ordinance shall become effective upon its passage and adoption according to law.

 

PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held on the                   day of                                                 , 2011.

 

 

 

                                                                                    THE CITY OF LEESBURG, FLORIDA

 

 

 

                                                                                    BY:                                                                 

                                                                                                MAYOR

 

 

 

Attest:                                                                        

            CITY CLERK