Okaloosa County BOCC — August 2, 2016 — Public Hearing Request - Adoption of Water & Sewer Ordinance — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: August 2, 2016 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Public Hearing Request - Adoption of Water & Sewer Ordinance DEPARTMENT: Water and Sewer BCC DISTRICT: All STATEMENT OF ISSUE: Okaloosa County Water & Sewer (OCWS) staff requests the Board of County Commissioners (BCC) authorize the scheduling and advertising of a public hearing regarding proposed adjustments in the Water and Sewer Ordinance. BACKGROUND: The current Water and Sewer Ordinance 12-14 was adopted by the Board of County Commissioners in May 2012. The Ordinance consists of language that governs our utility and Appendix A, which is the rates and other user fees. The Ordinance was amended in July 2016, where a capacity expansion charge deferral program was established, to assist in economic development efforts in the County. The proposed 2016 Water & Sewer Ordinance will replace the Ordinance 12-14 and includes the following 5-year rate plan: October 1, 2016 - 0% rate increase October 1, 2017 - 0% rate increase October 1, 2018 - 2.5% rate increase October 1, 2019 - 2.5% rate increase October 1, 2020 - 2.5% rate increase Attached is the proposed 2016 Water & Sewer Ordinance, in a tracked changes format. A new Appendix A for each fiscal year is included towards the end of the attachment. The proposed rates remain fixed for the first two years with no increase because of improved debt service (2015 bond re-issuance) and increased revenue from partnerships and grants. The reality is that modest rate increases are necessary in order to keep up with inflation in the water and sewer industry and to replace critical aging infrastructure. Staff believes that the public water supply and wastewater collection and treatment are critical infrastructure that must be maintained to keep an adequate level of service to customers - it is a matter of public health and safety. In addition to the above rate plan, the narrative portion of the Ordinance is also being amended, in order to update certain topics that need to be clarified since the Ordinance 12-14 was adopted in May 2012. Most of them are minor revisions that further serve to clarify items for the public, such as the definition of "septage" and clarification on fire lines. With a new state rule concerning cross connection control (AKA "backflow prevention"), staff has re-evaluated the backflow program and recommended a few updates. Most notably, instead of charging a $50 annual fee for the annual inspection of backflow devices, the proposed rates now have this as a $2.95 surcharge per month - the fee has been reduced and spread out over the course of a year. OPTIONS: Approve or deny. RECOMMENDATIONS: Staff recommends BCC approval to schedule a public hearing for the adoption of an amended Water and Sewer Ordinance at the Board's September 6, 2016 meeting and direct staff to advertise the Ordinance as required by law. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator