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HomeMy WebLinkAboutPolicy 1.0A t SEBASTIAN HIGHLANDS SERVICE AVAILABILITY AND MAIN EXTENSION POLICY Analysis to Compare 75% Recovery to 100% Recovery of Capital Costs Assumption: A. 400 Total Customers B. Current Utility Rates Reflect an 8% rate of return for the Utility. C. Expand plants and lines to connect exactly 75 customers in coming year. D. All operating and maintenance costs increase porportional to new customers. E. Mathematical calculations reflect a 75% recovery of capital costs. Water Plant Capacity 75 Customers x 350 gallons x $.86 per gallon= $22,575.00 = Total Cost of Providing Service $16,931.25 = Total Collected Connection Charges $ 5,643.75 = Total Increase to Rate Base Water Line Capacity 75 Customers x 80 FT/AVG Front Footage x $7.22 per foot = $43,320.00 = Total Cost of Providing Service $32,490.00 = Total Collected in Connection Charges $10,830.00 = Total Increase to Rate Base Sewer Plant Capacity 75 Customers x 250 Gallons x $2.22 per gallon = $41,625.00 = Total Cost of Providing Service $31,218.75 = Total Collected in Connection Charges $10,406.25 = Total Increase to Rate Base Sewer Line Capacity 75 Customers x 80 FT/AVG Front Footage x $15.47 per foot = $92.820.00 = Total Cost of Providing Service $69.615.00 = Total Collected in Connection Charges $23,205.00 = Total Increase to Rate Base Water Plant Capacity Water Line Capacity Sewer Plant Capacity Sewer Line Capacity Total Increase in Rate Base Rate of .Return Total Additional Revenue Required Total Customers Additional Revenue Required Per Customer $ 5,643.75 10,830.00 10,406.25 23,205.00 50,085.00 ", o0 4,006.80 :475 $ 8.43 PAGE 2 Effect on Customer Bill Assume all customer use 3,000 gallons of water a month. This results in a bill of $196.44/Year. Increase in Yearly Bill $8.43 _ 4.3% Increase Avg. Bill/Year 196.44 In Yearly Bill Original Sheet No. General Development Utilities, Inc. Sebastian ilighlands Division SERVICE AVAILABILITY AND VAIN EXTENSION POLICY General Development Utilities, Inc. 1111 South Bayshore Drive Miami, Florida 33131 Filed with City Commission City of Sebastian, Florida Exhibit "A" Gerard P. Mozian President General Development Utilities, Inc. Original Sheet No. 2.0 Sebastian Highlands Division INDEX Rule No. 1.0 General Policy. . . . . . . . . . . . . . . . . . 3.0 2.0 Availability. . . . . . . . . . . . . . . . ... . 3.0 3.0 Main Extension and Connection (Plant. Capacity) Charges . . . . . . . . . . . . . . . . . . 3.0 4.0 Gallons Per Day, Water and Sewer Demand Characteristics . . . . . . . . . . . . . . . . 4.0 5.0 Preparation of Developer 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. . . . . . . . . . .-51.0 10.0 Transfer of Contributed Property -Bills ofSale . . . . . . .. . . . . . . . . . . . . . . . 6.0 11.0 Inspection Fees . . . . . . . . . . . . . . . . . . . 7.0 12.0 Inspection of Plumber's Hook-up . . . . . . . . . . . 7.0 13.0 Adjustment Provisions . . . . . . . . . . . . . . . . 7.0 14.0 Prior Policy . . . . . . . . . . . . . . . . . . . . . 7.0 15.0 Extension Outside Territory . . . . . . . . . . . . . 8.0 16.0 Distribution and Collection Systems Construction . . . . . . . . . . . . . . . . . . . . . 8.0 17.0 Inspections . . . . . . . . . . . . . . . . . . . . . 9.0 18.0 Refundable Advances . . . . . . . . . . . . . . . . . 9.0 19.0 Guaranteed Revenue Agreement .. . . . . . . . . . . . 9.0 20.0 Reserve Capacity Charge . . . . . . . . . . . . . . .10.0 Exhibit "A" . . . . . . . . . . . . . . . . . . . . .11.0 Gerard P. nozian President General Development Utilities, Inc. Original Sheet No. 3.0 Sebastian Highlands Division 1.0 GENERAL POLICY General Development -Utilities, Inc., a Florida Corporation, here- inafter referred to as Utility, adopts and incorporates herein by reference Part IX, Rules and Regulations for Service Availability for Water and Sewer Systems, of the Florida Public Service Commis- sion, 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 Commission Rules and Regulations. This Policy shall not apply to developer's agreements entered into between Utility and contributors which reflect policies implemented and contracts entered into prior to the adoption of Part IX, Rules and Regulations, of the Florida Public Service Commission (25-10.120, F.A.C.). The word "person" 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 the Policy are available to contributors through- out the territory subject only to matters of economic feasibility. For Rules governing service outside the territory, 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 Utility to contributors (including the Parent Company) upon approval of the Board of County Commissioners, 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 collection 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 facilities of the Utility, and is computed by multiplying the following rates by the 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 serer service, Connection (Plant Capacity) Charge Water:y-�� Sewer. 2_Z X ' Gerard P. Mozian President General Development Utilities, Inc. Original Sheet No. 4.0 Sebastian Highlands Division Extension Charges are stated at the charge per foot measured along front of the property to be served. yf Main Extension Charge Water: 1-11 Sewer: 11.9E r}►�tti 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 & SEWER DEMAND CHARACTERISTICS Listed in Exhibit A (attached hereto) are daily rated gallons of demand for various occupancies 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 facilities, determination of connection (plant capacity) and main extension charges will be based upon the. use characteristic defined by engineering data supplied by 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 preparation of devel- oper agreement by independent counsel or persons qualified to draft and prepare such agreements. Said 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 't".?'D 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 allocated to the contributor the portion of water and sewer plant and off-site line capacity as set forth in the agreement. If, for example, the contributor 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 or service in excess of Gerard P. TMozian President General Development Utilities, Inc. Sebastian Highlands Division Original Sheet No. 5.0 that allocation and may require 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 experienced demand, and not the average demand. Thus, when Utility shall demanstrate to the developer that its records and experience show, for example, that a single-family residence of the type which the contributor proposed 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 Plicy shall be multiplied 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 equiva lent 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 5/8 x 3/4" $ 100.00 20 gallons per minute 1" 150.00 50 gallons per minute 112" 250.00 100 gallons per minute 2" 350.00 160 gallons per minute Utility will not be obligated to furnish water in excess of "Maximum Water Use Demand." Recommended Maximum Rate for continuous opera- tion will be 1/3 of the Maximum Rate listed. Meters of two inches in size 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 he furnished a copy of the invoice at the time of installation. 9.0 ACTION BY GOVERNMENTAL AUTHORITY Requirements by appropriate governmental authorities to limit or curtail utility services, such as irrigation moratoriums, may re - Gerard P. Mozian. President General Development Utilities, Inc. Original Sheet No. 6.0 Sebastian Highlands Division strict the use of utility service 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 limitation. 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 convey such compon- ent parts of the water distribution and sewage collection system to Utility by bill of sale, in form satisfactory 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 cus- tomer's side of the connection point shall not be transferred to Utility and shall remain the property of individual customers; their successors or assigns. Utility shall not be required to accept title to any component part of the water distribution or sewage collection system until Utility's engineer has approved the construction of said lines, accepted the tests to determine that such construction is in accor- dance with the criteria established by Utility, and thereafter evi- denced its acceptance of such lines for Utility's ownership, opera- tion, and maintenance. Contributor shall maintain accurate cost records establishing the construction costs of all utility facilities constructed by con- tributor. Such cost information shall be furnished to Utility conctirrently 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 connection and to deny the commencement of service to any contributor seeking to be connected to portions of the water distribution and sewage 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 apartient complex, Utility's obligation for service and maintenance of lines and faci- lities located wholly within such developments, and not in public Gerard P. Mozian President General Development Utilities, Inc. Original Sheet No. 7.0 Sebastian Iii Shlands Division rights of way, shall extend solely to repair and/or replace the lines or facilities, and the 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 the 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 fac- ilities of Utility. Such inspection fee shall be paid by the con- tributor in addition to all other charges above stated, as a condi- tion precedent to service. 12.0 INSPECTION OF PLUMBER'S HOOK-UP It shall be the responsibility of the contributor or its plumbing contractor to connect contributor's plumbing installation with the water or sewer system. Utility reserves the right to inspect all such connections to be assured that the same are properly made in accordance with Utility's rules governing such connections,. and that the•conr_ection, as made, is free from infiltration. The contributor shall notify Utility of any proposed interconnection with the facilities of Utility, and connection may be made without the presence of Utility's inspector. However, such connection shall remain open until inspection by Utility and until notice of the approval of such connection is furnished to the developer in accordance with the practices and procedures of Utility. Any connection covered without the benefit of inspection will result in the contributor being required to reopen the connection for subsequent inspection. If Utility fails to inspect the connection within 48 hours after notice that the same is ready to inspect, the connection shall be deemed approved by Utility. 13.0 ADJUSTMENT PROVISIONS Governmental Authority: The charges set forth in this Policy are subject to adjustment by appropriate action of the governmental agency having jurisdiction of this Policy, either upon the initiative of the governmental agency or by request of Utility (25-10.141, F.A.C.). 14.0 PRIOR POLICY Prior to the adoption of this Policy, Utility had, by virtue of its obligations, established other policies which will remain in effect until the obligations pursuant to those policies have been fulfilled. Gerard P. Mozian President General Development Utilities, Inc. Original Sheet No. 8.0 Sebastian Highlands Division Under a previous program, utility constructs water facilities at its own cost covering approximately 1418 lots to which water service would be extended by Utility within sixty days after the building permit has been obtained and notification of commencement of construction has been given to Utility. The cost of such water facilities is to be borne solely by Utility as an investment. The only charge to the customer would be a meter installation fee. Utility made a commit- ment to provide sewer service to approximately 1418 lots, and facilities will be installed as an investment of Utility to those lots. These commitments by Utility were based upon contracts made in the past and are not available to prospective customers or contributors. A list showing the lots to which service will be made available, as an investment by Utility, is available in Utility's office, and may be examined by any customer or prospective customer during the regular business hours of Utility's office (25-10.120, F.A.C.). 15.0 EXTENSION OUTSIDE TERRITORY Providing service outside Utility's territory may involve formal notice and formal proceedings before the Board of City Commissioners and, therefore, entail engineering, administrative and legal expenses in addition to costs incurred by Utility in providing service within its territory. Utility will, therefore, not be obligated to provide its services outside the territory unless the contributor agrees, in advance, to defray those additional expenses and pay to Utility the estimated costs thereof. The advance payment will be adjusted to confarm'with actual expenses after the proceedings have been concluded. Utility will further make such extensions outside the territory only if the net income to be derived from prospective consumers within the area to be served by the proposed extension will provide a fair return on Utility's investment in the proposed extension, transmission, and treatment facilities involved. Utility will not extend its facilities under circumstances where the extensions will cause service to existing customers to suffer either as a result of reduction of capacity to provide its service to customers, -or the diminishment of the economic capacility of Utility to meet its financial commitments (see Section 367.061; 367.121(2), Florida Statutes). 16.0 DISTRIBUTION AND COLLECTION SYSTEMS CONSTRUCTION If any on-site distribution and collection systems are constructed by the contributor as set forth in Paragraph 10.0 herein, Utility shall establish specifications based upon good engineering and public utility practices, and the contributor shall, not less than sixty (60) days prior to commencing construction, furnish Utility with a complete copy of the plans and specifications of the proposed on-site collection and distribution system. Utility shall have thirty (30) days in which to determine the acceptability of the plans and specifications furnished to it by the contributor. If the Utility shall object to the plans and specifications or any part thereof, the contributor shall defer the corvencement of Gerard P. Mozian President A General Development Utilities, Inc. Original Sheet No. 9.0 Sebastian Highlands Division construction pending the resolution of Utility's objections (25-10.127, F.A.C.). 17.0 INSPECTIONS Utility shall have, at all times during the construction, the right to inspect the construction of the on-site distribution and/or coll- ection systems being built by the contributor, or his agents or em- ployees, as set forth in Paragraph 11.0 of this Policy and receive payment of fees referred to herein. 18.0 REFUNDABLE ADVANCES Utility may require, in addition to the charges set forth herein, a refundable advance by a contributor to temporarily defray the cost of any off-site extension of water and/or sewer mains, pumping stations, and other facilities necessary to connect the developer's property with the then proper point of interconnection with Utility's existing water and sewer facilities, in size needed to provide service to the subject property. The contributor may be required to advance to Utility additional main extension charges based upon the anticipated hydraulic load requirements of the undeveloped property in order that such off-site facilities may be constructed to serve the developer's property and be in accordance with Utility's master plant for service to the immediate surrounding area. Charges paid by the contributor over and above the contributor's hydraulic share of the off-site facilities, shall be refunded to the developer in accordance with the terms and conditions ofa refunding agreement which Utility will execute with the contributor. The refund agreement will provide for a plan of refund based upon connection of other properties to the extent of their hydraulic share with other properties that will be served by the off-site facilities and styled at the expense of the contributor. Notwithstanding the provisions of this Section, Utility may limit the life of the refund agreement to a term of at least seven years, after which tine a portion of the refund not made to the contributor by the terms and conditions of the refund agreement shall be cancelled. In no event shall a contributor recover an amount greater than the difference between the capitalized cost of such off-site improvements and the developer's own hydraulic share of such improvement. Utility will not include any interest upon the refund of the developer's advance (25-10.111(20), F.A.C.). 19.0 GUARANTEED REIVEi UE AGREEMIENT Utility may establish a policy of requiring, as a condition prece- dent to service, that the contributor (developer) enter into a guar- anteed revenue agreement, as defined in Commission Rule No. 25-10-121 (12) . Gerard P. Mozian President General Development Utilities, Inc. Original Sheet No. 10.0 Sebastian Highlands Division 20.0 RESERVE CAPACITY CHARGE Pursuant to Section -25-10.134 and 25-10.138, F.A.C., Utility may enter into an agreement with a contributor requiring contributor to pay a minimum guaranteed connection charge. If contributor wishes to insure that there will be available sufficient plant capacity at various planned stages of development and, if Utility agrees to reserve such capacity for contributor, the contributor will be required to pay applicable fixed costs in depreciation, property tax, insurance and interest costs on plant capacity reserved for the period of the reservation. Gerard P. Mozian President ' General Development Utilities, Inc. Original Sheet No. 11.0 Sebastian Highlands Division EXHIBIT "A" SCHEDULE OF DAILY RATED GALLONAGE FOR VARIOUS OCCUPANCIES Types of Building Usage Apartments . . . . . . . . . . . . . . .. . . . . . .250 gpd(1) Bars and Cocktail Lounges . . . . . . . . . . . . . .5 gpcd (2) Boarding Schools (students and staff) . . . . . . . .75 gpcd Bowling Alleys (toilet wastes only, per lane) . . . .100 gpd Country Clubs (per member) . . . . . . . . . . . . . .25 gpcd Day Schools (students and staff). . . . . . . . . . .10 gpcd Drive-in Theatres (per car space) . . . . . . . . . .5 gpd Factories (with showers) .. . . . . . . . . . . . . .30 gpcd Factories (without showers) . . . . . . . . . . . . .10 gpd/100 sq. ft Hospitals (with laundry). . . . . . . . . . . . . . .250 gpd/bed Hospitals (without laundry) . . . . . . . . . . . . .200 gpd/bed Hotels and Motels . . . . . . . . . . . . . .'00 gpd/rm or unit Laundromats . . . . . . . . . . . . . . . . . . .225 gpd/washer Mobile Home Parks . . .300 gpd/trailer Movie Theatres, Auditoriums, Churches (per seat). .3 gpd Nursing Homes . . . . . . . . . . . . . . . . . . . .150 gpd/100 sq ft Office Buildings. . ..10 gpd/100 sq ft Public Institutions (other than those listed herein).75 gpcd Restaurants (per seat) . . . . . . . . . . . . . . . .50 gpcd Single -Family Residential Water: 5/8 x 3/4" meter. . . . . . . . . . .350 gpd 1" meter . . . . . . . . . . . . . . . . .600 gpd l'-," meter . . . . . . . . . . . . . . . . .1150 gpd Sewer . . . . . . . . . . . . . . . . . . . . .250 gpd Townhouse Residences (3). . . . . . . . . . . .250 gpd Stadiums, Frontons, Ball Parks, etc (per seat). . . .3 gpd Stores (without kitchen wastes) . . . . . . . . . . .5 gpd/100 sq ft Speculative Buildings . . . . . . . . . . . . . .300 gpd plus 10 gpd/100 sq ft Warehouses . . . . . . . . . . . . . . . . . . . . . .30 gpd plus 10 gpd/1000 sq ft (1) gpd - gallons per day (2) gpcd - gallons per capita per day (3) Condominiums shall be rated in accordance with the type (apartments, townhouses, etc.) NOTE: Sewage gallonage refers to sanitary sewage flow on a unit basis for average daily flow in gallons per clay. Gerard P. ;tozian President