Submitted By: Rusella Bowes-Johnson
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Presentation By: Sean Lanier
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Department: Water & Sewer
STAFF RECOMMENDATION (Motion Ready):
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Adopt Resolution 2023-28 to approve new water and sewer rates for 10-inch and 12-inch meters
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OCALA'S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Due to long lead times, supply chain shortages, and increased demand for 5/8-inch meters, developers are asked to use larger size meters. One apartment complex planned to install 5/8-inch meters for roughly 300 units; however, due to the issues listed above the developer's only option was to install two, 10-inch meters. The Water and Sewer rate structure approved by City Council on January 19, 2021, did not include rates for 10-inch and 12-inch meters. These customers are classified as large commercial users and do not fall under the tiered consumption structure. The City is expecting approximately seven additional developments that will require meters greater than eight-inches by the end of 2023.
Rates are established to support system operations and maintenance and to pay for capital expenditures for system repairs, upgrades, and expansions. The department wants to establish rates for two additional meter sizes.
FINDINGS AND CONCLUSIONS:
After comparing rates from 10 Florida municipals with 10-inch and 12-inch meters in their rate structure, the tables below highlight the average percentage increase from eight-inch to 10-inch meters and 10-inch to 12-inch meters. Staff used the lowest percentage from the comparison list to calculate the proposed 10-inch and 12-inch meter rates for the City of Ocala.
Staff recommends that Council approve the revised rate structure in "Table 1" (attached to this agenda item) which includes new rates for 10-inch and 12-inch meters. If approved, these new 10-inch and 12-inch meter fees will go into effect July 1, 2023.
The current rate structure is in effect until FY202...
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