Subject:
Title
Permission to Advertise the Utility Services Rate Resolution for the following: (1) County encompassing South Beaches, Merritt Island, North Brevard, Port St. John and the South Central Mainland Service Area; and (2) San Sebastian encompassing the San Sebastian Woods Water SystemEnd
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Fiscal Impact:
The following summarizes the requested rate adjustments:
(1) County - as proposed, the water and sewer user rates will be indexed as follows effective January 1 of each year: 2022 - 6.5%, 2023 - 8.5%, 2024 - 8.5%, 2025 - 8.5%, 2026 - 7.5%. Subsequent years the water and sewer user rates shall be indexed automatically annually.
(2) San Sebastian - as proposed, the water and sewer user rates shall be indexed automatically on January 1 of each year.
In addition to the proposed rate adjustments the two (2) rate resolutions have been modified to include an Exhibit A and B. Exhibit A contains rates, fees and charges where the cost has been adjusted but will be remain fixed thereafter with no annual index adjustment. Exhibit B contains rates, fees, and charges where the costs have been adjusted and the costs thereafter will be indexed annually.
All rates, fees and charges per Exhibit B shall be indexed pursuant to the Consumer Price Index Sewer and Water Maintenance Index (S W M I)(U).
Dept/Office:
Utility Services Department
Requested Action:
Recommendation
There are two requests for Board direction how to proceed:
(1) Permission to advertise for public hearing the attached rate resolutions.
(2) Direction from the Board on the means of advertisement:
a. Per Section 258-33(c) of the County Code of Ordinance County Ordinance, the County rate resolution must be advertised 20 calendar days before the public hearing.
b. In addition to the advertisement pursuant to County Ordinance mentioned above, direction from the Board on whether the advertisement for public hearing is to be included on water and sewer bills.
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Summary Explanation and Background:
The Utility Services Department has conducted a needs and assessment of functionality, reliability and capacity of the entire County utility facilities in order to meet the needs and demands driven by future utility connections and State and Federal regulations. Raftelis Financial Consultants, Inc., conducted a review of the Department’s revenue projections to the future investment required to be made to the water and sewer system. Our estimation of future investment over a 10 years period will be $460M. This total investment includes the $63M required in order to comply with F.S. 403.064.
The proposed rate adjustments will provide the funds necessary in order: (1) to provide investments to comply with F.S. 403.064 and 403.086 under Chapter 403 Environmental Control , (2) to replace treatment plant facilities that are beyond their useful life and increase capacity for future development at Port St. John and Mims, (3) to provide funds to supplement future septic-to-sewer construction costs, and (4) to increase the operations and maintenance effort in order to continue reliability throughout the utility system.
Both F.S. 403.064 and 403.086 include language that violations are subject to administrative and civil penalties pursuant to FS 403.121, 403.131 and 403.141. Please see attached F.S. 403.064(17)(d) and 403.086(2)(7) related to violations and penalties.
Per County Ordinance referenced under Requested Action, these rate resolutions must be advertised for public hearing. The public hearing can be held at the December 7th Board meeting. If the rate resolutions are approved, the revised rates would be implemented for the January billing cycle.
However, in addition to the advertisement for public hearing is the option to include a notice on the utility bills for all of our County’s Utility Services customers. Coordination with our Mims office along with those from the City of Melbourne and City of Cocoa will be required resulting in additional time and the request for the rate resolution approval being brought back at the March 2022 Board meeting. Thus should the billing notice option be directed by the Board, and rate resolutions be approved, the rate resolutions would be implemented for the April billing cycle.
Clerk to the Board Instructions:
E-mail clerk memo to rose.lyons@brevardfl.gov <mailto:rose.lyons@brevardfl.gov> and mail originals to the Utility Services Department