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HomeMy WebLinkAboutGDC rate increasePERSONAL & CONFIDENTIAL General Development Utilities. Inc. November 2, 1981 The Honorable Pat Flood Mayor, City of Sebastian P. 0. Box 127 City Hall Sebastian, FL 32958 RE: General Development Utilities, Inc. - Proposed Water and Sewer Rate Increase and Main Extension/Service Availability Charge Increase Dear Mayor Flood: Per our discussions with G. P. Mozian, enclosed please find proposed schedules for a water and sewer rate increase and a main extension and service availability charge increase, along with preliminary supporting documentation, which we plan to file in the next few weeks. If you have any questions, please feel free to call. Sincerely, GENERAL DEVELOPMENT UTILITIES, INC. N. L. Williams Financial Analyst Rates and Regulations NLW/jrt encl. cc: G.P. Mozian, C.E. Fancher 1111 South Bayshore Drive Miami F wnda 33131 Telephone 305 350 1331 A General Development Subsidiary GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS WATER OPERATIONS SCHEDULE OF RATES RESIDENTIAL AND COMMERCIAL CUSTOMERS: Present charge. all meter sizes: First 3,000 Gallons - $3.25 Minimum per month Next 3,000 Gallons - $ .50 per 1,000 Gallons Next 4,000 Gallons - $ .40 per 1,000 Gallons Next 10,000 Gallons - $ .35 per 1,000 Gallons Over 20,000 Gallons - $ .30 per 1,000 Gallons Proposed charge, all meter sizes: Base Facility Usage $4.00 First 10,000 Gallons - $1.40 per 1,000 Gallons Next 10,000 Gallons - $2.10 per 1,000 Gallons Next 30,000 Gallons - $2.80 per 1,000 Gallons Over 50,000 Gallons - $5.60 per 1,000 Gallons N Example: A customer who uses 5,000 gallons of water a month would presently pay $4.25; under the proposed rates, the customer would pay $11.00 for water service. GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS SEWER OPERATIONS SCHEDULE OF RATES RESIDENTIAL AND COMMERCIAL CUSTOMERS: Present charge, all meter sizes: Flat Rate - $5.00 Proposed charge, all meter sizes: Base Facility Usage $8.00 $2.66 per 1,000 Gallons up to 10,000 Gallons Maximum Maximum Bill: $34.60 Example: A customer who uses 5,000 gallons of water a month would presently pay $5.00; under the proposed rates, the customer would pay $21.30 for sewer service. a y. i 4� ;� •r z O z m rt m rt ::r rt H H H m L4 M M H 0 0 H• O �-t O rt rt to rt N b n m m n m H (D O " m H 0 rt m m N m n w m (n (n F- cn O rt rt rt w rt H. m p O O (D H b Qp :3 �l O :J rt M O H F-` C') r (Gn o m � D. 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SEBASTIAN HIGHLANDS WATER & SEWER DIVISION SCHEDULE OF SERVICE AVAILABILITY AND MAIN EXTENSION CHARGES WATER PRESENT Plant Capacity $0.36 per GPD Line Extension $2.19 per foot Meter Connection (3/411) $75.00 Meter Connection (111) $115.00 Meter Connection (13111) $190.00 Meter Connection (2") $265.00 SEWER PRESENT Plant Capacity $0.36 per GPD Line Extension $6.54 per foot $0.50 per GPD $7.00 per foot $100.00 $150.00 $250.00 $350.00 PROPOSED $1.19 per GPD $15.25 per foot The effect on a single family residential unit with a 5/8" x 3/4" water meter and 80 feet fronting on the water and sewer mains, for example, is as follows: Present Water $376.20 Sewer $649.20 Proposed $ 835.00 $1,636.50 N z O I Gyri ••H] m ( rt I In (D � Pi a m ort 0 :r oe o m rt o w 00 M po O m rt rt m M F-+ v M O H rt 0 En rt rt W O 00 (D CY M O M cn m rt H 7 C m (D a O w rt H fn m 00 O r w x m r N n � O 1 1 (n I 1 rt I I W 0 03 � C m rt H � w w w (n m (n o f) M 0, a o W C r W F + M ON 00 m rt 41 1 w N O� H O �O V m M a• E w w u) rt m (D a H Ili m o r.• 1 1 0) O I 1 (p H 1 1 C m N. 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P. rt 1 rt - P. b b n FJ N o C a (D (D H w atal rt O O Hy fn b FF- �t H (D O n II m O F- L,) 00 W O In a` 00 00 V O O O O V O In In O 0 0 0 In R y:J In LTJ C H C] C=7 G] LT1 a z c r� H H r U H tri r c H LT1 r O H z H r [T1 H H H [T1 [T] z cn H O H z z b O r H 1n {n In tN N �-D ON N V i In W In In �O 00 O O O W V Ln O O O V, In O In 00 0 til t o 0 N W O` ON O In O O O O O In Ul -cn N N � tD l� Ln W In r W O O In O O O In In O R y:J In LTJ C H C] C=7 G] LT1 a z c r� H H r U H tri r c H LT1 r O H z H r [T1 H H H [T1 [T] z cn H O H z z b O r H cn to Lo N N W I.- N 00 r In O O O A N W �o In 00 0 til t o 0 R y:J In LTJ C H C] C=7 G] LT1 a z c r� H H r U H tri r c H LT1 r O H z H r [T1 H H H [T1 [T] z cn H O H z z b O r H GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS RATE CASE 1980 TEST YEAR I N D E X Index - Notice - In compliance with City of Sebastian Ordinances 0-81-8 and 0-81-9 Affidavit - Exhibit 1 - Exhibit 2 - Exhibit 3 - Exhibit 4 - Exhibit 5 - Exhibit 6 - Exhibit 7 - Exhibit 8 - Present and Proposed Rates --Water and Sewer Constructed Statement of Operations --Water and Sewer Average Rate Base, Net Operating Income and Rate of Return Calculation --Water and Sewer Cost of Capital --Water and Sewer Calculation of Customer Deposits and Reconnection Charges --Water and Sewer Present and Proposed Service Availability and Main Extension Charges --Water and Sewer Calculation of Proposed Service Availability and Main Extension Charges --Water and Sewer Proposed Service Availability and Main Extension Policy --Water and Sewer General Development Corporation November 16, 1981 The Honorable Pat Flood City of Sebastian P. 0. Box 127 Sebastian, FL 32950 a Nancy H. Roen Corporate Counsel Re: Request for an Increase in Water and Sewer Rates for the Sebastian Highlands Division - General Development Utilities, Inc. ,and adoption of its Service Availability/Main Extension Policy Dear Mayor Flood: Pursuant to Section 3 of Ordinance 0-81-8 and 0-81-9, dated May 11, 1981, General Development Utilities, Inc. Water and Sewer Franchises, General Development Utilities, Inc. hereby gives notice to the City Council of the City of Sebastian that the Company deems it necessary to amend its charges for water and sewer services provided within its franchise area in the City of Sebastian. The present schedule of rates has become insufficient, and an increase is required in order to establish rates that are reasonable, sufficient, and compensatory and provide the Company with a fair and reasonable rate of return on the net valuation of its properties as provided by the franchise agreement. General Development Utilities, Inc. respectfully requests that the City Council set a public hearing as provided under said ordinance to consider this request at its earliest convenience. The increase is required to offset the adverse impact of inflation on General Development Utilities' operating costs. The current rate increase application is based upon a 1980 test year, and reflects the efforts of the Company to offset a portion of its losses while continuing to provide service at the lowest possible reasonable cost. In 1980 Sebastian Highlands had a net operating loss of $16,160, in its Water Division and a net operating loss of $16,188 in its Sewer Division. The Company cannot continue to operate if it loses money every year. The total requested revenues which General Development Utilities seeks is $43,279 in the Water Division and $28,177 in the Sewer Division based on the 1980 test year. 1111 South Bayshore Drive, Miami, Florida 33131 Telephone 305 350 1586 0 HON. PAT FLOOD 11/18/81 Page 2 0 The current and proposed water and sewer rates are attached hereto and made a part hereof as Exhibit 1. Comprehensive data supporting the proposed rates is attached as Exhibits 2 through 5. In addition, Genera? Development Utilities, Inc. seeks the adoption of its Service Availability/Main Extension Policy and to amend its schedule of charges to more accurately reflect the current costs of construction. These charges will be incurred only by new customers as they connect to the system. The current and proposed rates are attached hereto and made a part hereof as Exhibit 6 and supporting documents have been included as Exhibit 7. The Service Availability / Main Extension Policy has been attached as Exhibit 8. It is requested that the request for an increase in monthly rates for water and sewer service and adoption of the Service Availability/Main Extension Policy, together—with the requested increase in charges be placed on the agenda and notice \ for public hearing at the earliest opportunity. / Respectfully submitfed, Nancy/n. xoen Corporate/ Counsel NHR/lm Enclosure cc: Daniel Kilbride, A F F I D A V I T STATE OF FLORIDA COUNTY OF DADE I, Charles E. Fancher, Jr., Director of Finance for General Development Utilities, Inc., do solemnly swear that the facts stated in the foregoing application and all exhibits attached hereto are true and correct and that said statement of facts constitutes a complete statement of the matter to which it relates. Charles E. ancher, Jr. Director of Finance General Development Utilities, Inc. Subscribed and Sworn to before me this y of 1981. NOTARI PUBLIC State s)f Florida at Large t,y Commission Expires April 4, 1984 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS WATER OPERATIONS SCHEDULE OF RATES RESIDENTIAL SERVICE 50,000 gal - $1.40 per 1,000 Monthly Billing Charge: gal - $1.40 per 1,000 gal Present rates, all meter sizes 2.10 per 1,000 gal First 3,000 Gallons - $3.25 Minimum per month Next 3,000 Gallons - .50 per 1,000 Gallons Next 4,000 Gallons - .40 per 1,000 Gallons Next 10,000 Gallons - .35 per 1,000 Gallons Over 20,000 Gallons - .30 per 1,000 Gallons Proposed rates Meter Size Base Facility Usage 50,000 gal - $1.40 per 1,000 5/8 x 314" $ 4.00 First 10,000 gal - $1.40 per 1,000 gal Next 10,000 gal - 2.10 per 1,000 gal Next 30,000 gal - 2.80 per 1,000 gal Over 50,000 gal - 5.60 per 1,000 gal 1" $10.00 First 25,000 gal - $1.40 per 1,000 gal Next 25,000 gal - 2.10 per 1,000 gal Next 75,000 gal - 2.80 per 1,000 gal Over 125,000 gal - 5.60 per 1,000 gal 1'1'2" $20.00 First 50,000 gal - $1.40 per 1,000 gal Next 50,000 gal - 2.10 per 1,000 gal Next 150,000 gal - 2.80 per 1,000 gal Over 250,000 gal - 5.60 per 1,000 gal 2" $32.00 First 80,000 gal - $1.40 per 1,000 gal Next 80,000 gal - 2.10 per 1,000 gal Next 240,000 gal - 2.80 per 1,000 gal Over 400,000 gal - 5.60 per 1,000 gal Customer Deposits: Present rates All meter sizes - $15.00 Proposed rates Meter Size 518 x 314" 1" and above Reconnection Charges: $40.00 Three (3) months estimated billings Present rates $ 3.00 - during regular working hours 5.00 - after regular working hours Proposed rates $13.75 - during regular working hours 18.25 - after regular working hours EXHIBIT No. 1 page 1 of 4 GENERAL SERVICE Monthly Billing Charge: Present rates First Next Next Next Over Proposed rates • all meter sizes 3,000 Gallons - 3,000 Gallons - 4,000 Gallons - 10,000 Gallons - 20,000 Gallons - Base Facilit $3.25 Minimum per month .50 per 1,000 Gallons .40 per 1,000 Gallons .35 per 1,000 Gallons .30 per 1,000 Gallons Usage 5/8 x 3/4 " $ 4.00 First 10,000 gal - $1.40 per 1,000 gal Next 10,000 gal - 2.10 per 1,000 gal Next 30,000 gal - 2.80 per 1,000 gal Over 50,000 gal - 5.60 per 1,000 gal 1" $10.00 First 25,000 gal - $1.40 per 1,000 gal Next 25,000 gal - 2.10 per 1,000 gal Next 75,000 gal - 2.80 per 1,000 gal Over 125,000 gal - 5.60 per 1,000 gal 112" $20.00 First 50,000 gal - $1.40 per 1,000 gal Next 50,000 gal - 2.10 per 1,000 gal Next 150,000 gal - 2.80 per 1,000 gal ` Over 250,000 gal - 5.60 per 1,000 gal 2" $32.00 First 80,000 gal - $1.40 per -1,000 gal Next 80,000 gal - 2.10 per 1,000 gal Next 240,000 gal - 2.80 per 1,000 gal Over 400,000 gal - 5.60 per 1,000 gal 3" $64.00 First 160,000 gal- $1.40 per 1,000 gal Next 160,000 gal- 2.10 per 1,000 gal Next 480,000 gal- 2.80 per 1,000 gal Over 800,000 gal- 5.60 per 1,000 gal 4" $100.00 First 250,000 gal- $1.40 per 1,000 gal Next 250,000 gal- 2.10 per 1,000 gal Next 750,000 gal- 2.80 per 1,000 gal Over 1,250,000 gal- 5.60 per 1,000 gal 6" $200.00 First 500,000 gal- $1.40 per 1,000 gal Next 500,000 gal- 2.10 per 1,000 gal Next 1,500,000 gal- 2.80 per 1,000 gal Over 2,500,000 gal- 5.60 per 1,000 gal Customer Deposits: Present rates Meter Size 5/8 x 3J4" $ 15.00 1" 30.00 1'12' 11 60.00 2" 100.00 Proposed rates Meter Size 5J8 x 3J4" $ 65.00 1" and above Three (3) months estimated billings EXHIBIT No. 1 page 2 of 4 • GENERAL SERVICE (cont) Reconnection Charges: Present rates $ 3.00 - during regular working hours 5.00 - after regular working hours Proposed rates $13.75 - during regular working hours 18.25 - after regular working hours STANDBY CHARGES -FIRE HYDRANT AND/OR SPRINKLER SYSTEMS Present monthly rates Fire hydrants located on private property - $5.00 minimum per month Fire mains into private buildings - 5.00 minimum per month Minimum Charge: $5.00 Proposed annual rates 4" Mains - $ 6" Mains - 8" Mains - 400.00 per year 800.00 per year 1,280.00 per year EXHIBIT No. 1 r page 3 of 4 0 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS SEWER OPERATIONS SCHEDULE OF RATES RESIDENTIAL SERVICE Monthly Billing Charge: Present rate All meter sizes $5.00 flat rate Proposed rate, all meter sizes Base Facility Usage $8.00 $2.66 per 1,000 Gallons up to 10,000 Gallons Maximum Bill: $34.60 Customer Deposits: Present rate All Meter Sizes - None Proposed rate Meter Size 518 x 314" $80.00 1" and above Three (3) months estimated billings GENERAL SERVICE Monthly Billing Charge: Present rate All meter sizes Proposed rate Meter Size 518 x 314" 1" 1%" z 2" 311 411 611 8" 10" 12" Customer Deposits: Present rate All meter sizes Proposed rate Meter Size 518 x 314" 1" and above $5.00 or 100% of water bill, whichever is greater Base Facility Usage $ 8.00 $2.66 per 1,000 gallons 20.00 $2.66 per 1,000 gallons 40.00 $2.66 per 1,000 gallons 64.00 $2.66 per 1,000 gallons 128.00 $2.66 per 1,000 gallons 200.00 $2.66 per 1,000 gallons 400.00 $2.66 per 1,000 gallons 640.00 $2.66 per 1,000 gallons 920.00 $2.66 per 1,000 gallons 1,720.00 $2.66 per 1,000 gallons None $120.00 Three (3) months estimated billings EXHIBIT No. 1 page 4 of 4 Operating Revenues Operating -Expenses: Operations Maintenance Depreciation Taxes Other Than Income Taxes Provision for Income Taxes Net Operating Income Other Income (Deductions) Interest Income Miscellaneous Income Interest on Long Term Debt Interest on Customer's Deposit Net Income GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS WATER OPERATIONS CONSTRUCTED STATEMENT OF OPERATIONS TWELVE MONTHS ENDED DECEMBER 31, 1980 STATEMENT OF OPERATIONS PER BOOKS $ 14,915 18,525 5,493 3,810 3,247 31,075 (16,160) ( 1,788) ( 213) ( 2,001) $(18,161) REQUESTED RATE OF RETURN ADJUSTMENTS $ 28,364 103 4,918 5,021 23,343 $ 23,343 REQUESTED FAIR RATE OF RETURN STATEMENT OF OPERATIONS $ 43,279 18,525 5,493 3,810 3,350 4,918 36,096 7,183 ( 1,788) ( 213) ( 2,001) S 5.1R� • 0 • 0 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS SEWER.OPERATIONS CONSTRUCTED STATEMENT OF OPERATIONS TWELVE MONTHS ENDED DECEMBER 31, 1980 REQUESTED FAIR STATEMENT REQUESTED RATE OF RETURN FAIR RATE OF RETURN OF OPERATIONS RATE OF RETURN STATEMENT RATE OF RETURN STATEMENT PER BOOKS ADJUSTMENTS OF OPERATIONS ADJUSTMENTS OF OPERATIONS Operating Revenues $ 6,154 $22,023 $28,177 $12,106 $40,283 Operating Expenses: Operation 10,894 10,894 10,894 Maintenance 5,873 5,873 5,873 x Depreciation 3,089 3,089 3,089 H W H H Taxes Other Than Income Taxes 2,486 2,486 568 3,054 z o Provision for Income Taxes - 1,581 1,581 5,619 7,200 N 22,342 1,581 23,923 6,187 30,110 Net Operating Income (16,188) 20,442 4,254 5,919 10,173 Other Income (Deductions) Interest Income Miscellaneous Income Interest on Long Term Debt ( 2,589) (2,589) ( 2,589) Interest on Customer's Deposit b w ( 2,589) (2,589) ( 2,589) N o Net Income $(18,777) $20,442 $ 1,665 $ 5,919 $ 7,584 M N • 0 M X- GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS WATER OPERATIONS AVERAGE RATE BASE, NET OPERATING INCOME AND RATE OF RETURN TWELVE MONTHS ENDED DECEMBER 31, 1980 is E RATE BASE AT BALANCE REQUESTED FAIR REQUESTED FAIR PER BOOKS RATE OF RETURN RATE OF RETURN DECEMBER 31, 1980 REVENUE ADJUSTMENTS REVENUES Utility Plant in Service $147,611 $ $147,611 Accumulated Depreciation (41,571) (41,571) Contributions -In -Aid -Of -Construction (49,896) (49,896) Accumulated Depreciation-CIAC 4,671 4,671 Working Capital 2,456 2,456 Income Tax Lag - (984) ( 984) Total Rate Base $ 63,271 $ (984) $ 62,287 Net Operating Income $(16,160) $23,343 $ 7,183 Rate of Return 0% 11.53% is E GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS SEWER OPERATIONS AVERAGE RATE BASE, NET OPERATING INCOME AND RATE OF RETURN TWELVE MONTHS ENDED DECEMBER 31, 1980 BALANCE PER BOOKS DECEMBER 31, 1980 Utility Plant in Service $187,626 Accumulated Depreciation (34,714) Contributions -In -Aid -Of -Construction (70,944) x Accumulated Depreciation -CIRC 6,099 H H o Working Capital 1,569 Income Tax Lag _ Total Rate Base $ 89,636 Net Operating Income $(16,188) Rate of Return 0% ZE REQUESTED REVENUE RATE BASE AT ADJUSTMENTS REQUESTED REVENUES $ $187,626 (34,714) (70,944) 6,099 1,569 (316) ( 316) $ (316) $ 89,320 $20,442 $ 4,254 4.76% FAIR RATE OF RETURN REVENUE ADJUSTMENTS RATE BASE AT FAIR RATE OF RETURN REVENUES $187,626 (34,714) (70,944) 6,099 1,569 ( 1,440) $ 88,196 $ 10,173 11.53% GENERAL DEVELOPMENT UTILITIES, INC. Sebastian Highlands Rate Case 1980 Test Year COST OF CAPITAL DECEMBER 31, 1980 WATER AND SEWER OPERATIONS LINE NO. Class of Capital 1 Long -Term Debt: 2 Prudential 3 Bank Line 4 Travelers 5 Flagship 6 Total Long -Term Debt 7 Preferred Stock 8 Common Stock Equity 9 Accumulated Deferred Income Taxes 10 Totals 11 TOTAL COST OF CAPITAL EFFECTIVE Cost of Weighted Cost AMOUNT (000) Ratio Capital of Capital $ 18,224 162,645 6.01% 8.35% 33,000 10.89 20.04 (A) 3,032 1.00 9.25 3,000 .99 17.65 (A) 57,256 18.89- 8.84 162,645 53.66 16.00 83,180 27.45 - $303,081 100.00% .50% 2.18 .09 .17 8.59 11.53% 12 (A) Prime rate of 15.0% used in these cost computations. See Pages 4 and 5 for a cost of capital computation on the bank line. 13 NOTE: 14 Information is for 'General Development Corporation Class of Capital, Ratios and cost Rates with the exception of the cost rate for equity capital. Only that capital which is a potential source of funding to General Development Utilities, Inc. operations is shown. EXHIBIT No. 4 Page 1 of 3 GENERAL DEVELOPMENT UTILITIES, INC. Sebastian Highlands Rate Case 1980 Test Year COST OF CAPITAL DECEMBER 31, 1980 WATER AND SEWER OPERATIONS LINE NO. 1 BANK LINE COST OF CAPITAL CALCULATIONS: 2 Effective Balance: 3 Per Books Balance @ 12/31/80 $33,000,000 4 Less Compensating Balances 5 10% x $40,000,000 $4,000,000 6 10% x $33,000,000 3,300,000 7,300,000 7 Total Effective Borrowings $25,700,000 8 Interest Expense: 9 Base Borrowings $33,000,000 10 Interest Rate (Prime Rate + 1J2) 15.50% 5,115,000 11 Commitment Fee: 12 .5% ($40,000,000 - $33,000,000) 35,000 13 Total Interest Expense $ 5,150,000 14 Effective Interest Rate 20.04% EXHIBIT No. 4 Page 2 of 3 GENERAL DEVELOPMENT UTILITIES, INC. Sebastian Highlands Rate Case 1980 Test Year COST Oi CAPITAL DECEMBER 31, 1980 WATER AND SEWER OPERATIONS LINE NO. 1 FLAGSHIP NOTE COST OF CAPITAL COMPUTATION: 2 Effective Balance: 3 Per Books Balance @ 12/31/80 $3,000,000 4 Less'Compensating Balance - 15% x $3,000,000 450,000 5 'Total Effective Borrowings 2,550,000 6 Interest Expense: 7 Base Borrowings 3,000,000 8 Interest Rate 15% 9 Total Interest Expense $ 450,000 10 Effective Interest Rate 17.65% EXHIBIT No. 4 Page 3 of 3 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS RATE CASE 1980 TEST YEAR CALCULATION OF REFUNDABLE DEPOSITS WATER SEWER AVERAGE USE X 3 MONTHS AVERAGE AMOUNT OF CURRENT X 3 MONTHS AVERAGE AMOUNT OF CURRENT (GALS) BILLINGS DEPOSIT DEPOSIT BILLINGS DEPOSIT DEPOSIT RESIDENTIAL 5/8 x 3/4" 7,000 $41.40 $40.00 $15.00 $ 79.86 $ 80.00 None 1" and above Three (3) months estimated billings r� k x H GENERAL SERVICE H 0 5/8 x 3/4" 12,000 $66.60 $65.00 $15.00 $119.76 $120.00 wNone "' 1" and above Three (3) months estimated billings b w UQ 0 M ME L, 0 GENERAL DEVELOPMENT UTILITIES, INC, SEBASTIAN HIGHLANDS RATE CASE 1980 TEST YEAR RECONNECTION CHARGES Reconnection (turn -on) of a customer involves determination that the turn -on should be made, preparation of a Service Work Order, driving to customer's home, turn valve to permit low of water, returning to Utility office with completed Service Work Order. A reconnection by definition requires that the service first be turned off. Turn-off requires determination that the turn-off should be made (delinquent account or temporary vacancy), prepara- tion of a Service Work Order, driving to the customer's home, turning valve to stop flow water, returning to Utility office with completed Service Work Order. A. Reconnection Charge During Normal Working Hours 1. Labor 1.5 hours (turn-off and turn -on cycle) @ $5.75/hr. = $ 9.00 2. Fringe Benefits (insurance, vacation, holidays, etc.) a. FICA .0667 b. Unemployment Insurance .0080 c. Payroll Insurance .0572 d. Group Insurance .0569 .1888 e. Holidays .0346 f. Vacation .0385 g. Illness .014 Total .2759 use 28% = 2.52 3. Equipment (Vehicle) a. Depreciation $6,000 Vehicle t year life $1,500 annual depreciation $1,500 t 2,080 hours = $0.72/hour b. Operation Expense $3,300 per vehicle per year $3,300 t 2,080 hours = 1.59/hour Total 2.31 = 2.31 Use 13.83 $13.75 B. Reconnection Charge after Normal Working Hours 1. Labor 1.5 hours @ $6.00/hour X 1.5 = 13.50 2. Fringe Benefits (.1888) = 2.55 3. Equipment (Vehicle) = 2.31 $18.36 EXHIBIT No. 5 Use $18.25 page 2 of 2 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS WATER & SEWER DIVISION SCHEDULE OF SERVICE AVAILABILITY AND MAIN EXTENSION CHARGES WATER PRESENT Plant Capacity $0.36 per GPD Line Extension $2.19 per foot Meter Connection (3/4") $75.00 Meter Connection (111) $115.00 Meter Connection (11�") $190.00 Meter Connection (2") $265.00 SEWER PRESENT Plant Capacity $0.36 per GPD Line Extension $6.54 per foot EXHIBIT No. 6 PROPOSED $0.50 per GPD $7.00 per foot $100.00 $150.00 $250.00 $350.00 PROPOSED $1.19 per GPD $15.25 per foot GENERAL DEVELOPMENT UTILITIES, INC. SERVICE AVAILABILITY AND MAIN EXTENSION POLICY PER BOOKS CURRENT PROJECTED 12/31/80 CONSTRUCTION CONSTRUCTION TOTAL COST PER UNIT $ 7.22 $15.47 0 a Water Treatment Plant Capacity Cost Cost $ 65,537 $ 296,000 ---$ 371,537 $ .86 Capacity (GPD) 144,000 288,000 --- 432,000 M HWater Main Capacity/Main Extension Cost Transmission and Distribution Mains H o Cost --- $ 154,879 ---$ 154,879 Installed Footage(ft) --- 16,107 --- 16,107 $ 9.62 V Sewage Treatment Plant Capacity Cost Cost ______ $ 665,391 $ 665,391 Capacity (GPD) _-_ 300,000 --- 300,000 $ 2.22 Sewer Main Capacity/Main Extension Cost Collection and Pumping Plant $ 338 $ 338,767 Installed Footage (ft) --- 16,429 ___ 16,429 $ 20.62 0 rn r.� NOTE: Over 80% of the lots to be served are 80 x 125. An average of 60 ft. of water main or sewage collection lines is required to serve the 80 ft. frontage of the lots. Line costs on this schedule are based upon service to 80 ft. frontage lots. $ 7.22 $15.47 0 a GENERAL DEVELOPMENT UTILITIES, INC. SERVICE AVAILABILITY AND MAIN EXTENSION POLICY METER INSTALLATION COST 0 METER SIZE MATERIAL: Base Cost with inserts: $ 29.70 $ 64.95 $ 151.60 $ 210.90 Other Material: Meter box with lid $ 8.75 Saddle 6.00 Corporation Stop 15.00 Angle Valve 10.00 Watts #7 double "V" Valve X backflow preventor 13.00 25' Service Lien 8.75 Plumbers pice SP -2 Adaptors 3.85 65.35 65.35 65.35 65.35 z o Total Materials $ 95.05 $ 130.30 $ 216.95 $ 276.25 V LABOR: Average Installation Time = 1 hour for 3 service technicians 23.40 23.40 23.40 23.40 EQUIPMENT: 1 backhoe @$25.00/per hour 25.00 25.00 25.00 25.00 2 trucks @$7.00/ per hour 14.00 14.00 14.00 14.00 TOTAL COST: 157.45 192.70 279.35 L138.65 0 • 0 GENERAL DEVELOPMENT UTILITIES, INC. ORIGINAL SHEET NO. 1.0 SEBASTIAN HIGHLANDS DIVISION GENERAL DEVELOPMENT UTILITIES, INC. SERVICE AVAILABILITY AND MAIN EXTENSION POLICY Gerard P."Mozian Executive Vice President EXHIBIT No. 8 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS DIVISION INDEX RTTT.F AV1 ORIGINAL SHEET NO. 2.0 cuppm Wn 1.0 General Policy .................................. 3.0 2.0 Availability .................................... 3A 3.0 Main Extension and Connection (Plant Capacity) 4.0 Charges......................................... 3.0 Gallons Per Day, Water and Sewer Demand Characteristics................................. 4.0 5.0 Preparation of Developer's Agreements ........... 4.0 6.0 Water and Sewer Capacity Allocations ............ 4.0 7.0 Water Service Only - Sewer Service Only ......... 5.0 8.0 Water Meter Installation Fees ................... 5.0 9.0 Action by Governmental Authority ................ 6.0 10._0 Transfer of Contributed Property - Bills of Sale. 6.0 11.0 Inspection Fees ................................. 7.0 12.0 Inspection of Plumber's Hook -Up ................. 8.0 13.0 Adjustment Provisions ........................... 8.0 14.0 Prior Policy .......... .... ......... 8.0 15.0 ........ Extensions Outside Territory. .................... 9.0 16.0 Distribution and Collection Systems 17.0 Construction.................................... Inspections 9.0 10.0 18.0 ..................................... Refundable Advances ............................. 10.0 19.0 Guaranteed Revenue Agreement .................... 11.0 20.0 Reserve Capacity Charge ......................... 111'0 Exhibit "A.. ..................................... 12.0 Gerard P. Mozian Executive Vice President 0 9 GENERAL DEVELOPMENT UTILITIES, INC. ORIGINAL SHEET NO. 3.0 SEBASTIAN HIGHLANDS DIVISION 1.0 GENERAL POLICY General Development Utilities, Inc., a Florida corporation, hereinafter referred to as Utility, adopts and incorporates herein by reference Part IX, Rules and Regulations for Ser- vice Availability for Water and Sewer Systems, of the Florida Public Service Commission, promulgated under Commission Order No. 6397. Utility will make available service and extensions of service under said Rules, subject to matters of economic feasibility, as defined in Rule.No•. 25-10.121 of the said Com- mission Rules and Regulations. This Policy shall not apply to developer's agreements entered into between Utility and dontributors which reflect policies implemented and contracts entered into prior to the adoption of Part IX, Rules and Regu- lations, of the Florida Public Service Commission. (25-10.120, F.A.C.) The word "person" as used in Rule 25-10.121(5), F.A.C., shall mean and include "political subdivision" as defined in subsection 1.01(9), Florida Statutes. 2.0 AVAILABILITY The provisions of this Policy are available to contributors throughout the territory subject only to matters of economic feasibility. (For Rules governing service outside the terri- tory, see Paragraph 15.0 of this Policy.) (For reference to prior policies, see Paragraph 14.0 of this Policy:.) (See Section 367.121(1)(d), Florida Statutes.) 3.0 MAIN EXTENSION AND CONNECTION (PLANT CAPACITY) CHARGES The following is the charge being made by the Utility to con- tributors (including the Parent Company) upon approval of the Public Service Commission or other governmental agency having jurisdiction of this Policy, where water or sewer service is available or agreed to be made available, in'the territory. "On site" or "Off-site" water distribution and sewage collec- tion lines and facilities are included in these charges and provisions. Charges to contributors pursuant to this Policy are calculated on a cost based upon the estimated demand of the contributor's proposed installation, upon the transmission and treatment faci- lities of the Utility, and is computed by multiplying the follow- ing rates by daily rated gallons of demand set forth in Exhibit A, as modified by Paragraph 6.0 of this Policy. Connection (plant capacity) charges are stated per gallon demand for water and sewer service. (Continued to Sheet No. 4.0) Gerard P. Mozian Executive Vice President GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS DIVISION (Continued from Sheet No. 3.0) Connection (plant capacity) • ORIGINAL SHEET NO. 4.0 Water: $ 0.50 Sewer: $ 1.19 Extension charges are stated at the charge per foot measured along front of the property to be served. Main Extension Charge Water: $ 7.00 Sewer: $15.25 3.01 Main extension charges for service to customers outside Utility's certificated service area will be negotiated. (a) Such customers may be required to advance the full cost of on-site and off-site mains, subject to refund of portions thereof in excess of the contributor's hydraulic share. (b) In addition to payment of the above, connection (plant capacity) charges will be required to support excess plant capacity dedicated to the contributor. 4.0 GALLONS PER DAY, WATER AND SEWER DEMAND CHARACTERISTICS In Exhibit "A", attached hereto, is a list of daily rated gallons of demands for various occupants which will be used in computing Connection (plant capacity) and Main Extension Charges. In the instance of.common facilities for multiple dwelling units such as irrigation, laundering, recreation facilities, and commercial and commercial/residential faci- lities, determination of connection (plant capacity) and main extension charges will be based upon the use the prospective contributor, as accepted by Utility. (25-10.121(11), F.A.C.) 5.0 PREPARATION OF DEVELOPER AGREEMENTS Utility may require that the contributor, in addition to the fees and charges set forth herein, bear the cost of prepara- tion of developer agreement.,by independent counsel or persons qualified to draft and prepare such agreements. Sain charges shall not exceed that amount normally to be contemplated for such service. (25-10.137, F.A.C; 25-10.139, F.A.C.) 6.0 WATER AND SEWER CAPACITY ALLOCATIONS Upon payment by the contributor and its proper execution of an agreement for service availability pursuant to these rules, Utility will reserve and will allocate to the contributor the (Continued to Sheet No. 5.0) t' Gerard P. Mozian 'Executive Vice President 0 GENERAL, DEVELOPMENT UTILITIES, INC. ORIGINAL SHEET.NO. 5.0 SEBASTIAN HIGHLANDS DIVISION (Continued from Sheet No. 4.0) portion of water and sewer plant and off-site line capacity as set forth in the agreement. If for example, the contribu- tor shall calculate demand of 350 gallons of water per day per single family residence, that capacity will be built or reserved for the contributor. Utility will not be obligated to provide capacity in excess of that allocation and may re- quire consumers to curtail use which exceeds such allocated capacity. In those areas where the experience of Utility has demonstrated that the demand characteristics of customers of the community exceed those daily rated gallons of demand set forth in Exhibit A, Utility shall require that the contributor pay those fees and make the necessary commitments based on the actual and ex- perienced demand, and not the average demand. Thus, when Utility shall demonstrate to the developer that its records and experi- ence show, for example, that a single-family residence of the type which the contributor proposes to build in the specific community places demand during certain times of the year equal to 600 gallons of water per day, then the charges per gallon demand set forth in Paragraph 3.0 of this Policy shall be multi- plied by 600 gallons. In no event shall Utility be required to build or accept plans, specifications, fees, charges or agreements predicated upon demand for water service of less than 350 gallons per single-family residential equivalent or sewer service or less than 350 gallons per residential equivalent per day. (25-10.121(13), F.A.C. ) 7.0 WATER SERVICE ONLY - SEWER SERVICE ONLY In any instance where either water or sewer service only is furnished without the companion service, then the connection (plant capacity) charge shall be computed for that service only. 8.0 WATER METER INSTALLATION FEES Meter Size Charge Maximum Water Use Demand 518" x 314" $ 100.00 20 gallons per minute 1" 150.00 50 gallons per minute 12" 250.00 100 gallons per minute 2" - 350.00 160 gallons per minute (Continued to Sheet No. 6.0) Gerard P.-Mozian Executive Vice President 0 GENERAL DEVELOPMENT UTILITIES, INC. ORIGINAL SHEET NO. 6.0 SEBASTIAN HIGHLANDS DIVISION (Continued from Sheet No. 5.0) Utility will not be obligated to furnish water in excess of "Maximum Water Use Demand." Recommended Maximum Rate for continuous operation will be 1/3 of the Maximum Rate listed. Meters over 2 inches in site are charged upon the estimated actual cost of installation. Where actual charges differ from estimates, the difference will be refunded by Utility if the total cost was less than the estimate, or paid by the contributor prior to initiation of water service if the actual cost exceeds the estimated cost. The contributor will be furnished with a copy of the invoice at the time of installa- tion. 9.0 ACTION BY GOVERNMENTAL AUTHORITY Requirements by appropriate governmental authorities to limit or curtail utility services, such as irrigation moratoriums, may restrict the use of utility services in addition to the maximum water use demand set forth in Paragraph 8.0 of this Policy. Contributors and customers obtain reservation for __service or the service itself subject to notice of this limi- tation, 10.0 TRANSFER OF CONTRIBUTED PROPERTY - BILLS OF SALE Utility reserves the right to construct all facilities for providing water. and sewer :service:to the point of connection. If Utility determines that it will accept such facilities constructed by others, the following rules will apply: ,Each contributor (developer) who has constructed portions of a water distribution and sewage collection system shall con- vey onvey such component parts of the water distribution and sewage collection system to Utility by bill of sale, in form satis- factory to Utility's attorney, together with such evidence as may be required by Utility that the water and/or sewer systems proposed to be transferred to Utility are free of all liens and encumbrances. Any facilities in the category of consumer's connections of the customer's side of the connection point shall not be transferred to Utility and shall remain the property of indi- vidual customers, their successors or assigns. Utility shall not be required to accept title to any component part of the water distribution and sewage collection system (Continued to Sheet No. 7.0) Gerard P. Mozian Executive Vice President GENERAL DEVELOPMENT UTILITIES, INC. ORIGINAL SHEET NO. 7.0 SEBASTIAN HIGHLANDS DIVISION (Continued from Sheet No. 6.0) until Utility's engineer has approved the construction of said lines, accepted the tests to determine that such con- struction is in accordance with the criteria established by Utility, and thereafter evidenced its acceptance of such lines for Utility's ownership, operation, and maintenance. Contributor shall maintain accurate cost records establishing the construction costs of all utility facilities constructed by contributor. Such cost information shall be furnished to Utility concurrently with the bill of sale, and such cost information shall be a prerequisite for the acceptance by Utility of the portion of the water distribution and sewage collection system constructed by the contributor. Utility reserves the right to refuse contributor and to deny the commencement of service to any contributor seeking to be connected to portions of the water distribution and sew- age collection system until such time as the provisions of this section have been fully met. With respect to a development which constitutes a "single unit" such as a mobile home park, a shopping center, or apartment complex, Utility's obligation for service and.... maintenence of lines and facilities located wholly within such development, and not in public rights of way, shall extend solely to repair and/or maintenance of the lines or facilities, and Utility will not be liable in any manner for damages, replacement or repairs to surface areas. 11.0 INSPECTION FEES Any engineering plans or designs for, or construction of facilities by a contributor (developer) which are to become a part of Utility's system, will be subject to review and inspection by Utility. For this service, Utility may charge an inspection fee based upon the actual cost to Utility of inspection of facilities constructed by contributors or independent contractors for connection with the facilities of Utility. Such inspection fee shall be paid by the con- tributor in addition to all other charges above stated, as a condition precedent to service. Gerard P. Mozian Executive Vice President