O-444-M
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City of Clermont
MISCELLANEOUS ORDINANCE NO. 444-M
AN ORDINANCE OF THE CODE OF ORDINANCES OF
THE CITY OF CLERMONT, LAKE COUNTY, FLORIDA,
ESTABLISHING A RATE SCHEDULE FOR WATER AND
AND SEWER SERVICE, SUPERSEDING MISCELLANEOUS
ORDINANCE 329-M, SECTION 1 AND MISCELLANEOUS
ORDINANCE 424-M; SECTIONS 1 AND 2, PROVIDING FOR
SEVERABILITY, PROVIDING FOR AN EFFECTIVE DATE,
AND PROVIDING FOR PUBLICATION.
THE CITY COUNCIL OF THE CITY OF CLERMONT, LAKE COUNTY, FLORIDA, HEREBY ORDAINS
THAT IN ORDER TO PROPERLY AND FAIRLY ALLOCATE THE COSTS AND BENEFITS OF PUBLIC
WATER AND SEWER SERVICES PROVIDED BY THE CITY, THAT THE FOLLOWING WATER AND
SEWER SERVICES RATE SCHEDULES BE ADOPTED:
SECTION 1.
A. The rate schedule pertaining to the provision of water service shall be as follows:
Inside
City
Outside
City
Non-Irriqation Meter
Single Family and Commercial-
- Base Charge per Month
$5.48
$6.85
- Variable Charge per Month (per 1.000 gallons)
1.000 -10.000 gallons $1.10
11.000 - 20.000 gallons $1.43
21,000 - 30.000 gallons $2.20
over 30.000 gallons $3.00
$1.38
$1.79
$2.75
$3.75
Multi-Family-
- Base Charge per Month
$5.48
$6.85
- Variable Charge per Month (per 1,000 gallons)
1,000-10.000gallons $1.10
over 10.000 gallons $1.43
$1.38
$1.79
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City of Clermont
MISCELLANEOUS ORDINANCE NO. 444-M
Page 2
SECTION 1. /Contlnued)
A. The rate schedule pertaining to the provision of water service shall be as follows (continued):
Inside
City
Outside
City
Irriqation Meter
Single Family, Multi-Family and
Commercial
- Base Charge per Month
$5.48
$6.85
- Variable Charge per Month (per 1,000 gallons)
1.000 - 10.000 gallons $1.43
11,000 - 30.000 gallons $2.20
over 30.000 gallons $3.00
$1.79
$2.75
$3.75
B. In order for the water customer to be charged under the Non-Irrigation Meter Multi-Family
rate structure. it must be certified by the City's utility department that no irrigation system
is connected to the water meter. Otherwise, if an irrigation system is connected to the water meter.
the rate structure for a Non-Irrigation Meter Single Family shall be charged.
C. The Outside of City rate structure shall apply to all water customers who receive service outside of the
City limits, with the exception of any customers who receive service in accordance with specific utility
service agreements.
D. The Non-Irrigation Meter Multi-Family rate structure only applies to multi-family customers that receive
water service through a master meter. Multi-family customers that receive service through an individual
water meter shall be charged based on the Non-Irrigation Meter Single Family rate structure.
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City of Clermont
MISCELLANEOUS ORDINANCE NO. 444-M
Page 3
SECTION 2.
A. The rate schedule pertaining to the provision of sewer service shall be as follows:
Inside
£!!ï
Outside
£!!ï
Single Family and Commercial
- Base Charge per Month
5/8" x 3/4" meter
1" meter
1 1/2" meter
2" meter
3" meter
4"meter
6"meter
8" meter
$11.70 $14.63
$29.26 $36.58
$58.53 $73.16
$93.65 $117.06
$187.31 $234.14
$292.66 $365.83
$585.34 $731.68
$936.53 $1,170.66
$1.53 $1.91
- Variable Charge per Month (per 1.000 gallons)
Multi-Family
- Base Charge per Month (per unit)
$9.37
$11.71
- Variable Charge per Month (per 1 ,000 gallons)
$1.53
$1.91
B. The Outside of City rate structure shall apply to all sewer customers who receive service outside
of the City limits, with the exception of any customers who receive service in accordance with specific
utility service agreements.
C. The maximum amount of gallons subject to the variable charge per month shall be as follows:
Single-Family
Multi-Family
Commercial
16.000 gallons
13.000 gallons
no maximum
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City of Clermont
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MISCELLANEOUS ORDINANCE NO. 444-M
Page 4
SECTION 3
This Ordinance shall supersede the water and sewer rate schedules specified in Miscellaneous
Ordinance 329-M. Section 1 and Miscellaneous Ordinance 424-M. Sections 1 and 2. All other provisions
of Miscellaneous Ordinances 329-M and 424-M shall be in effect.
SECTION 4
Should any section or part of this section be declared invalid by any court of competent
jurisdiction. such adjudication shall not apply or affect any other provision of this ordinance.
except to the extent that the entire section or part of the section may be inseparable in meaning
and effect from the section to which such holding shall apply.
SECTION 5
This ordinance shall be published as provided by law and it shall become law and take effect
June 1. 2002.
First Reading this 23rd day of April. 2002
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Second Reading this 14th day of May, 2002
PASSED AND ORDAINED BY THE CITY COUNCIL OF THE CITY OF CLERMONT, LAKE COUNTY
FLORIDA, THIS 14TH DAY OF MAY, 2002.
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HÀROlD S. TURVILLE, JR. MAyOR
ATTEST:
r-
Q-~~RK
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TO:
FROM:
DATE:
RE:
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MEMORANDUM
Wayne Saunders. City Manager
Joe Van Zile. Finance Direct~
April 12. 2002
Miscellaneous Ordinance No. 444-M
..**....*******...***...*....*.***************..***............................**.................................
Miscellaneous Ordinance No. 444-M provides for a revised water and sewer rate structure. effective
June 1. 2002. The main objectives of the ordinance are to (1) encourage additional water conservation,
(2) adopt a uniform water rate structure for all residents of the City of Clermont and (3) adopt a separate
water and sewer rate structure for customers who live outside of the City of Clermont. An explanation
of the above noted objectives is as follows:
Water Conservation -
Since the adoption of the tiered water rate structure in June 2001. the City's water
consumption has decreased by approximately twenty-one percent (21%). However.
the St. Johns River Water Management District has encouraged the City to enact measures
to conserve additional water. An effective method to encourage the conservation of·
water primarily used for irrigation purposes, is to increase the cost of water used by
heavy users (over 30.000 gallons per month). As a result. Miscellaneous
Ordinance No. 444-M provides for an additional tiered water rate of $3.00 per 1,000
gallons of usage for consumption above 30,000 gallons per month, with the
exception of multi-family and commercial non Irrigation users.
Uniform Water Rate Structure -
In May 1995. the City acquired the Lake Hills Utility System. a private water supply and
distribution system. The City acquired the system ( to be known as the East System) in
order to efficiently expand the water service area east of Grand Highway due to anticipated
growth. A line of credit in the amount of $3.000,000 was obtained from a local bank to
provide the financing for the acquisition and needed system improvements.
The City also adopted the same rate structure that was in place at the time of acquisition and
has charged any customer serviced by this water system based on that rate structure.
In addition. the City has charged customers who primarily live west of Grand Highway
and receive water service from a separate system ( known as the West System) in
accordance with a separate rate structure that has been in place since September. 1994.
Hence, the City has maintained two separate rate structures since May 1995. based on the
water system providing the service.
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Uniform Water Rate Structure /continued)-
The rate structures are similar with the exception of two factors. First, the East System
base charge is $9.11 per month as compared to the West System base charge of $4.85.
Second. the East System structure provides for a charge of $1.13 per 1.000 gallons for the
first 3.000 gallons used as compared to the West System rate structure that does not
charge for the first 3.000 gallons of monthly usage. Based on monthly consumption of
10.000 gallons, the East System customer water charge of $20.41 is approximately 62%
higher than the West System customer water charge of $12.55. Until recently, the rate
disparity has been justified due to the differences in the systems' customer base and
expenses as explained in the following:
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Customer Base -
When the City acquired the East System in 1995. the number of customers
served by the system was approximately 600. As everyone knows. the area
served by the East Water System has grown tremendously and the current
customer base is approximately 3.982 as opposed to the West System
customer base of 3,952. Considering the small customer base at the time of
acquisition and the line of credit debt service associated with the purchase of the
private system, it was necessary to maintain the same rate structure that was in
place in order for the acquisition to be financially feasible. However, since the
East System customer base has grown substantially, it is not necessary to
maintain a higher East System rate structure to compensate for a smaller
customer base.
Rate Based Expenses -
System expenses which are typically considered when setting service rates
are operating expenses and net debt service. The current year rate based
expenses for the East System are budgeted at $995.358, whereas the rate based
expenses for the West System are $843,416. The East System rate based
expenses which must be funded from water rates has actually decreased from
prior years, primarily due to the City now using a portion of the City's water and
sewer impact fees to pay the debt service associated with the 1995 Line of Credit
and 2000 Water and Sewer Bond Issue. While the East System rate based
expenses are slightly higher than the West System rate based expenses
( approximately 18% ), the current rate based expenses difference does not
justify the difference in the systems' rate structures.
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Uniform Water Rate Structure (continued)-
Due to the recent changes to the City's water system as noted previously, several
uniform water rate options were formulated and analyzed. As discussed at the Council
Workshop on April 4th, the following option is recommended:
> Increase the West System monthly base charge from $4.85 to $5.48
> Start charging the West System customers for the first 3,000 gallons
of usage per month at the rate of $1.10 per 1,000 gallons
> Decrease the East System monthly base charge from $9.11 to $5.48
This option is recommended primarily due to (1) the minimal effect on the West
System customer, (2) being revenue neutral to the City's Water Fund and (3) the City's
2000 Water and Sewer Bond Issue minimum debt service ratios would be met.
An analysis summarizing the effects of the additional tiered rate ( over 30,000 gallons)
and the uniform water rate structure change, based on various levels of consumption for a
single family customer is as follows:
West East Out of
· Monthly System System City
Water Customer Customer Customer
Usage Inc(Dec) Inc(Dec) Inc(Dec)
2,000 gal $2.83 -$3.69 -$1.76
10,000 gal $3.93 -$3.93 $0.24
35,000 gal $7.93 -$1.23 $15.79
Even considering the effect of the uniform water rate structure, the proposed Inside of the
City rate structure still compares very favorably to other water utilities (private and public) in
the area. The monthly water charge for a single family customer using 10,000 gallons per
month based on the proposed rate structure would be $16.48 as opposed to the average of
$19.59 of other utilities.
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Outside of the City Rate Structure·
Florida Statutes, Chapter 180.191 provides Cities with the authority to adopt a separate
water and sewer rate structure for customers who live outside of the City boundaries.
The Chapter states the Outside of the City rate structure may not be more than twenty-five
(25%) higher than the Inside of the City rate structure. As a result, Miscellaneous Ordinance
444-M provides for an Outside of the City rate structure for water and sewer services which
is 25% higher than the Inside of the City rate structure. It is noted that the Outside of the
City rate structure does apply to all customers who Jive outside of the City boundaries,
with the exception of those customers who receive service in accordance with separate
utility agreements. The number of water customers who would be billed under the Outside
of the City rate structure is currently 474 customers.
Please schedule for council approval.
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Note
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The monthly increases are based on consumption of 10,000 gallons.
Option 7
:> Increase the West System base charge from $4.85 to $5.48 per month
> Start charging the West System customers for the first 3,000 gallons usage per month
> Decrease the East System base charge for City residents from $9.11 to $5.48 per month
> Add an additional variable charge tiered rate of $3.00 per 1,000 gallons aller usage of
30,000 gallons per month
> Ado )t a separåte"ratestructurefór
Non-City,
residents
(ExcludingJI.révious agreements)
$3.93
-$3.93
$0.24
$31
1.42
Option 6
> Increase the West System base charge from $4.85 to $5.39 per month
> Start charging the West System customers for the first 3,000 gallons usage per month
> Decrease the East System base charge for City residents from $9.11 to $5.39 per month
> Adopt a separate rate structure for Non-City residents (Excluding previous agreements)
$3.84
-$4.02
$0.13
-$9,163
.41
West
Resident
Monthly
Inc iDec)
East
Resident
Monthly
Inc iDec)
Non-City
Resident
Monthly
Inc iDec)
City
Annual
Revenue
Inc iDecl
2002-03
Bond
Debt Svce
Ratio
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City of Clennont, Florida
Summary of Water Rate Adjustment Options
June 1, 2002
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4/4/02
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City of Clermont, Florida
Current vs. Proposed Water Rates
June 1, 2002
West System Customer
Non-Irrigation Meter
Single Family
> Base Charge per Month
> Variable Charge per Month
1,000 - 3,000 gallons
4,000 -10,000 gallons
11,000 - 20,000 gallons
21,000 - 30,000 gallons
over 30,000 gallons
Multi-Family and Commercial
> Base Charge per Month
> Variable Charge per Month
1,000 - 3,000 gallons
4,000 - 10,000 gallons
11,000 - 20,000 gallons
over 20,000 gallons
Irrigation Meter
Single Family, Multi-Family
and Commercial
> Base Charge per Month
> Variable Charge per Month
1,000 - 3,000 gallons
4,000 - 10,000 gallons
11,000 - 30,000 gallons
over 30,000 gallons
4/4/02
Current
ProDosed
InclDecl
$4.85 $5.48 ~~$0;p3!\i\il
$0.00 $1.10 lJ)ï~~ldmiil
$1.10 $1.10 $0.00
$1.43 $1.43 $0.00
$2.20 $2.20 $0.00
$2.20 $3.00 1i,~$:O!ð,~¡~:IT
$4.85 $5.48 m1$Ot6~¡ij]1
$0.00 $1.10 ~j¡jm
$1.10 $1.10 $0.00
$1.43 $1.43 $0.00
$2.20 $1.43 iR"$07:7j
h'-1~- ¡:' ¿ 0;h
'""",,_,;,.,.',.-,,'.c-
$4.85
¡¡jBò;63M
$5.48
$0.00
$1.43
$2.20
$2.20
~
$0.00
$0.00
.m.
$1.43
$1.43
$2.20
$3.00
Note - The variable charge rates are per 1,000 gallons of usage.
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City of Clermont, Florida
Current vs. Proposed Water Rates
June 1, 2002
East Svstem - Inside of City Customer
Non-Irrigation Meter
Single Family
> Base Charge per Month
> Variable Charge per Month
1,000 -10,000 gallons
11,000 - 20,000 gallons
21,000 - 30,000 gallons
over 30,000 gallons
Multi-Family and Commercial
> Base Charge per Month
> Variable Charge per Month
1,000 - 10,000 gallons
11,000 - 20,000 gallons
over 20,000 gallons
Irrigation Meter
Single Family, Multi.Family
and Commercial
> Base Charge per Month
> Variable Charge per Month
1,000 - 10,000 gallons
11,000 - 30,000 gallons
over 30,000 gallons
4/4/02
Current
ProDosed
InclDecl
$9.11 $5.48
$1.13 $1.10
$1.47 $1.43
$2.26 $2.20
$2.26 $3.00
$9.11 $5.48
$1.13 $1.10
$1.47 $1.43
$2.26 $1.43
!f: I¡~$ß;63;1
f~";";$.3:6IJ
$9.11
If=$.~!ß3ì I
$5.48
$1.47
$2.26
$2.26
$1.43
$2.20
$3.00
Note - The variable charge rates are per 1,000 gallons of usage.
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City of Clermont, Florida
Current vs. Proposed Water Rates
· June 1, 2002 4/4102
Current Proposed 'nclDec)
East System - Outside of City Customer
Non-Irrigation Meter
Single Family
> Base Charge per Month $9.11 $6.85 ~lílí~$2!'Z6~r~
"~wt;,, ....." """
> Variable Charge per Month
1 ,000 - 1 0,000 gallons $1.13 $1.38
11,000 - 20,000 gallons $1.47 $1.79
21 ,000 - 30,000 gallons $2.26 $2.75
over 30,000 gallons $2.26 $3.75
Multi-Family and Commercial
> Base Charge per Month $9.11 $6.85 ¡¡¡j$226
&]"7, ""cr, ,Atl::,
> Variable Charge per Month
1,000 -10,000 gallons $1.13 $1.38
11,000 - 20,000 gallons $1.47 $1.79
over 20,000 gallons $2.26 $1.79
· Irrigation Meter
Single Family, Multi-Family
and Commercial
> Base Charge per Month $9.11 $6.85 :~4$4'}2a~\\l¡¡
> Variable Charge per Month
1,000 -10,000 gallons $1.47 $1.79
11,000 - 30,000 gallons $2.26 $2.75
over 30,000 gallons $2.26 $3.75
Note - The variable charge rates are per 1,000 gallons of usage.
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City of Clermont, Florida
Current vs. Proposed Sewer Rates
· June 1, 2002 4/4/02
Current Proposed Inc Dec)
Inside of City Customer
- Single Family/Commercial
-Base Charge per Month
5/8" x 3/4" meter $11.70 $11.70 $0.00
1" meter $29.26 $29.26 $0.00
1 1/2" meter $58.53 $58.53 $0.00
2"meter $93.65 $93.65 $0.00
3"meter $187.31 $187.31 $0.00
4" meter $292.66 $292.66 $0.00
6" meter $585.34 $585.34 $0.00
8" meter $936.53 $936.53 $0.00
-Variable Charge per Month $1.53 $1.53 $0.00
- Multi-Family
-Base Charge per Month (per unit) $9.37 $9.37 $0.00
-Variable Charge per Month $1.53 $1.53 $0.00
· Outside of City Customer
- Single Family/Commercial
-Base Charge per Month
5/8" x 3/4" meter $11.70 $14.63
1" meter $29.26 $36.58
1 1/2" meter $58.53 $73.16
2" meter $93.65 $117.06
3"meter $187.31 $234.14
4" meter $292.66 $365.83
6" meter $585.34 $731.68
8" meter $936.53 $1,170.66
-Variable Charge per Month $1.53 $1.91 ~.
- Multi-Family
-Base Charge per Month (per unit) $9.37 $11.71 .æ.
-Variable Charge per Month $1.53 $1.91 II$~IID
Note - The variable charge rates are per 1,000 gallons of water usage.
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Lake County Water Rates Comparison
Based on 10,000 Gallons Consumption
April 2002 (Option 7)
· Citv Rate Structure Base Variable Total
Eustis - Outside City Tier 12.00 (3,000) 19.04 (1) 31.04
lady lake Tier 8.64 (a) 21.00 (2) 29.64
Groveiand Flat 10.50 (4,000) 16.50 (2.75/1,000) 27.00
Fruitland Park - Outside City Flat 13.50 (3,750) 9.16 (1.10./750) 22.66
Mascotte Flat 6.75 (3,000) 15.75 (2.25/1,000) 22.50
Howey-in-the-Hills Flat 21.85 (10,000) 0.00 (1.10/1,000) 21.85
Eustis - Inside City Tier 8.01 (3,000) 12.74 (3) 20.75
Tavares Flat 10.10 (3,000) 10.64 (1.52/1,000) 20.74
!Clermont - Outside ,City (proposed) Tier 6.85 (0) 13.80 (4) 20.651
¡Clermont - East (Currerit) Tier 9.11 (Q) 11.30 @ 20.41
Umatilla Flat 12.00 (4,000) 8.10 (1.35/1,000) 20.10
Utilities Incorporated of Florida Flat 11.94 (0) 6.90 (.69/1,000) 18.84
leesburg - Outside City Tier 8.44 (0) 10.39 (6) 18.83
South lake Utilities Flat 8.72 (Q) 8.30 (.82/1,000) 17.02
¡Clermont - InsideCltyJPr6posed)_ Tier 5.48 (Q) 11,00 m~ 16.481
Minneola Tier 5.00 (2,000) 10.90 (8) 15.90
Fruitland Park - Inside City Flat 9.00 (3,750) 6.08 (.73/750) 15.08
leesburg - Inside City Tier 6.75 (0) 8.26 (9) 15.01
· Montverde Tier 4.50 (3,000) 9.00 (10) 13.50
IClermont - West (Cu,,~rit) Tier 4.85 (ª-,OOO) 7.70 (11) 12.551
Mount Dora Fiat 4.68 (2,250) 6.20 (.60/750) 10.88
AVERAGE 19.59
(1) 4-20,000 gal- $2.72/1,000; 21-50,000 gal- $2.91/1 ,000; > 50,000 gal- $3.08/1,000
(2) 1-3,000 gal- $1.70/1.000; 4-7,000 gal - $2.10/1 ,000; > 7,000 gal - $2.50/1,000
(3) 4-20,000 gal - $1.82/1,000; 21-50,000 gal - $1.94/1,000; > 50,000 gal - $2.05/1,000
(4) 1-10,000 gal- $1.38/1,000; 11-20,000 gal- $1.79/1,000; 21-30,000 gal- $2.75/1,000;
> 30,000 gal - $3.75/1,000
(5) 1-10,000 gal-$1,13/1,OOO; 11-20,000 gal- $1,47/1,000; >20,000 gal-$2.26/1,000
(6) 1-12,000 gal - $.78/750; 13-21,000 gal - $1.03/750; 22-45,000 gal - $1.28/750;
> 45,000 gal - $1.53/750
(7) 1-10,000 gal - $1.10/1,000; 11-20,000 gal - $1.43/1,000; 21-30,000 gal - $2.20/1,000
> 30,000 gal - $3.00/1,000
(8) 3-6,000 gal- $1.00/1,000; > 6-12,000 gal- $1.58/1,000; 13-20,000 gal- $2.15/1,000
>20,000 - $2.69/1,000
(9) 1-12,000 gal- $.62/750; 13-21,000 gal- $.82/750; 22-45,000 gal- $1,02/750;
> 45,000 gal - $1.22/750
(10) 4-10,000 gal- $1.50/1,000; 11-20,000 gal- $2.00/1,000; > 20,000 gal- $2.50/1,000
(11) 4-10,000 gal -$1.10/1,000; 11-20,000 gal - $1.43/1000; >20,000 gal - $2.20/1,000
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