manatee county utility planning presentation
DESCRIPTION
Robert J. Ori of Public Management Resources Group Inc. presented to the Manatee County Commission regarding utility rates at the 1/20/2015 workshop.TRANSCRIPT
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ManateeCountyGovernmentWorksessionJanuary20,2015
Utilities Planning & Policy
1
dvollmerText BoxSanitary Sewer Collection System for New Service Areas
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Whatourprocesshasbeen
Issuesthatprocesscreates
Fundamentalprinciplesunderlyingproposedsolutions
2DS
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Proposedsolutions(recentexecutedLDAshaveincorporatedthese)ChangetoFIFschedule,presentationofthatstudy
Processchanges codeofordinancesUpdateourMasterPlans
3DS
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CurrentProcess
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200,000
250,000
300,000
350,000
400,000
450,000
500,000
UnincorporatedPopulationEstimateAllCountyPopulationEstimate
JO
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EstablishesWater&SewerServiceAreasBasedonengineeringReflectedonFutureLandUseMap
Large serviceareaVacant/aglands
6JO
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JO
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8JO
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Addzoomlikeprevious.addlinestopreviousgraphic
SM
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Collection/DistributionSystems Computermodelplanforutilitiesbuildoutofservicearea
Forcemainroute/location,pipesize,Masterpumpstationlocations,etc.
FutureMasterliftstations Intendedtooptimizecapitalinvestmentforlongterm
10SM
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11
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CurrentDevelopmentProcess Developer:
Responsibleforextendingutilityservicetotheir projects Designsnewlines&stationssizedtotheir needs
County: Participatesinupsizingnewlines&stationssizeforconsistencyw/masterplan(buildout) Builditrightthefirsttimephilosophy Minimizesduplicativeconstructionprojects Multiplelineswithintherightofway notdesirable
12SM
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CurrentDevelopmentProcess Initialdevelopmentin areaswherefutureforcemaindoesnotexistbearssignificantinitialcostinstallingtheline.
Countybearstheremainderoftheabovecostwiththeinitialdevelopment
Subsequentdevelopmentbearsverylittlecostornocostandbenefitsfromaboveinstallation.
13SM
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14
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Issues Current Process
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Multipleapprovedprojectsrequestingutilityservicenow
Developmentprojectsoriginallyapprovedin2000s Requireupsizing requiresCountyinvestment ROWmayormaynotnotexistforlineextensions MasterPumpStationsnotbuilt
16SM
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Newdevelopmentprojectsrequestingserviceinareasrequiringsignificantlineextensions
Constructionofnewlinestoofarinadvanceofneeds(customers)createsoperationalissues
17SM
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ExistingFacilityInvestmentFee(FIF)Newplant,newcollectionsystems,newliftstations
ExistingFacilityInvestmentFeescheduleneedstobeupdatedtoreflecttheneedforlineextensions
18SM
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Initialdevelopmentinareaswherefutureforcemaindoesnotexistbearssignificantinitialcostinstallingtheline.
19SM
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Countybearstheremainderoftheabovecostwiththeinitialdevelopment BuilditrightthefirsttimeMultipleparallellines=operationalissues
Goingforward,theCountyneedstoaddressfundingforthisparticipation
20SM
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AlternativeConnections SomedevelopmentsrequestingusingexistinglinesratherthanconstructingfuturelinescalledoutinMasterPlans(AlternativeConnections)
Lowerupfrontcosttodeveloper Takesawaycapacityofline increasescostslater
Evaluatedonacasebycasebasis21SM
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AlternativeConnections Currentprocesshasnomeansofcapturingcountyscostofincorporatingalternativeconnectionstomeetthemasterplan
22SM
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Fundamental Principles
DS
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Countyresponsibletooperateutilitiesinanefficientandfinanciallysoundmanner
UtilitiesisanenterprisefundFromsystemrevenuesNotmixedwithotherfunds
24DS
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Ratepayerspayforoperationsandmaintenanceofexisting system
DevelopmentpaysforexpansionofthesystemviaFacilityInvestmentFees(FIFs)CountyusesFIFsforupsizing
25DS
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GrowthshouldpayforgrowthPolicyoftheBoardofCountyCommissioners January2009adopted
26DS
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Recommendations
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UpdateFIFschedule
UpdateCodeofOrdinances
UpdateourMasterPlans
28DS
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AdoptUpdatetoFacilityInvestmentFeeSchedule Covercostsassociatedwithimprovinginfrastructureindevelopingareas
Ensuresmasterplanapproachtosafeguardefficiencyofsystem
29DS
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ReflectMasterPlans&consistencyofdevelopmentwithmasterplans
Feasibilityofextensions
Alternativeconnections
30DS
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CreditstowardFacilityInvestmentFees
Continueagreementswithdevelopersasappropriate: Alternativeconnections Developmentprofferingcommitmentofimprovements,rightsofway,etc.
Extendedcapacityreservations
31DS
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32
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
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FIFanalysisonlyencompassedwastewater ExistingFIFIncludesTwoPrimaryCapitalCostRecoveryComponents: IdentifiedasSystemCosts BenefitallUsers TreatmentandDisposalComponent(plants)
PrimaryTransmissionComponent(largelines&pumpstations)
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ExistingFIFIncludesTwoPrimaryCapitalCostRecoveryComponents:(contd) DoesntIncludeonsiteCostsSpecificto
Development Manholes,LocalLiftStations,CollectionLines,
Laterals GenerallyDonatedasPartofDevelopment
Process AnalysisFocusedOnlyonPrimaryTransmission
ComponentofFee
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"SystemBuyIn"Approach
TheMostEquitableMethod DeterminationofProRataCosttoServeNewEquivalentResidentialConnection(ERC) ERCRepresentsCapacityAllocatedtoaSingleFamilyResidence
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"SystemBuyIn"Approach
ConsideredOriginalCostofUtilityPlantConstructedandAvailabletoServeNewGrowth
ConsideredTodaysCostEstimatestoServeNewGrowth
ConsideredBuildoutPopulationEstimatestoDetermineERCsand"UnitCost"
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LevelofService(LOS)=AllocatedCapacity(Flow)perERC
LOSAssumedat210gpd perERCtoDeriveUnitCost
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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
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dvollmerText BoxDisposal of Surplus County Property