Subject:
Title
Utility Services Rate Resolution for Barefoot Bay encompassing the Barefoot Bay Water and Sewer District SystemTitle
End
Fiscal Impact:
The following summarizes the requested rate adjustments:
As proposed the water and sewer user rates will be adjusted beginning March 2022 and subsequent years beginning January 1 from 2023 thru 2025 as follows: 2022 - 10.0%, 2023 - 13.0%, 2024 - 13.0%, 2025 - 13.0%. Beginning January 1, 2026 and January 1st of subsequent years the water and sewer user rates shall be indexed automatically annually.
In addition to the proposed rate adjustments, the rate resolution has been modified to include an Exhibit A and B. Exhibit A contains rates, fees and charges where the cost has been adjusted but will remain fixed thereafter with no annual index adjustment. Exhibit B contains rates, fees, and charges where the costs have been adjusted and the costs will thereafter be indexed annually.
All rates, fees and charges per Exhibit B shall be indexed annually pursuant to the U.S. Bureau of Labor Statistics Seasonally Adjusted U.S. City Average Consumer Price Index for All Urban Consumers Water and Sewerage Maintenance Series Id CUSR0000SEHG01 (W S M I)(U).
Dept/Office:
Utility Services Department
Requested Action:
Recommendation
Approval of the Rate Resolution for the Barefoot Bay Water and Sewer District System to be implemented March 2022
End
Summary Explanation and Background:
The Utility Services Department has conducted a review of its water and sewer capacity, the conditions of existing assets, and the impacts of recent State Environmental Laws have to this Department. With the assistance of our utility rate consultant, Raftelis, Inc., much detail was invested to develop a financial model of this Department and to review the revenue versus future expenditures of this Department.
Through this level of due diligence, we propose the rate adjustments, as specified under Fiscal Impact, that will provide the funds necessary in order: (1) to provide infrastructure investments to comply with Section 403.064 and 403.086 Florida Statute, (2) to replace treatment plant facilities that are beyond their useful life and increase capacity for future development in Barefoot Bay, and (3) to increase the operations and maintenance efforts in order to continue reliability throughout the District’s utility system.
In addition, the rate resolution includes an Exhibit A & B, as mentioned under Fiscal Impact. Exhibit A contains rates, fees and charges where the cost has been adjusted but will remain fixed thereafter with no annual index adjustment. Exhibit B contains rates, fees, and charges where the costs have been adjusted and the costs will thereafter be indexed annually. The fixed fees have not been adjusted in the duration of the County having jurisdiction of the Barefoot Bay Water & Sewer District.
In depth information related to this agenda report will be referenced in the additional attachments provided. A summary of some key information and its attachments is provided below:
1. Attachment A - Additional Information Memorandum
This memorandum provides further in-depth information as to the why the rate adjustment is needed, how the additional revenue will be allocated, and how the ARPA allocation provided a reduction in the proposed rate increase.
2. Attachment B - Barefoot Bay Water & Sewer Rate Resolution and Exbibit A & B
3. Attachment C - F.S. 403.064 - Reuse of Reclaim Water
This State Statute is referenced through the addenda report and supporting documents as one of the drivers for the needed rate adjustment. Highlighted sections are provided for relevance to the County Utility Services Department.
4. Attachment D - F.S. 403.086 - Sewage Disposal Facilities
This State Statute is referenced through the addenda report and supporting documents as one of the drivers for the needed rate adjustment. Highlighted sections are provided for relevance to the County Utility Services Department.
5. Attachment E - Barefoot Bay water & sewer customer location map
6. Attachment F- Sewer and Water / Sewer User Rate Comparison
The two graphs provided show a comparison with our rate increase over a 2-year span compared to other water and sewer utilities within Brevard County
7. Attachment G - Report to FDEP for Barefoot Bay Discharge Elimination Plan
This report is what was submitted to the FDEP regarding our plan to comply with F.S. 403.064. This plan was approved by the Board at the October 12, 2021 Board meeting.
8. Attachment H - Proof of Public Hearing Advertisement
Clerk to the Board Instructions:
E-mail Clerk Memo to rose.lyons@brevardfl.gov <mailto:rose.lyons@brevardfl.gov> and mail originals to Utility Services Department.