Item N3BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: _12/9/2015 Department: County Attorney!
Bulk Item: Yes _ X No Staff Contact /Phone #: Cynthia Hall, (305) 292-3470 _
AGENDA ITEM WORDING: Approval to initiate litigation by fling a petition to intervene in the
Public Service Commission application by Key West Resort Utilities (KWRU) for an increase in
wastewater rates in Monroe County, Docket No. 150071-SU.
ITEM BACKGROUND: On June 30, 2015, KWRU filed an application for an increase in
wastewater rates with the Florida Public Service Commission. A copy of documents filed in the case
can be found at htt ://www. sc.state.fl.us/dockets/cros/docketdetaiIs2.as x?docket--150071. A
customer meeting will be held on December 10, 2015 at 6 pm at Old City Hall in Key West. An initial
order on the rate application will be issued by March 21, 2016. Thereafter, parties have the right to
protest the proposed order until April 11, 2016, after which a final order will issue.
The application seeks approximately a 98% increase in rates. Rates were last increased in 2009. A
preliminary analysis based on FYI invoices from KWRU to the County shows that the amount of the
annual increase to the County would be approximately $198K based on usage in FY15. Staff is
recommending intervention based on the effect of the proposed rate increase on the County as a
ratepayer, and also on the County as a representative of affected citizens.
PREVIOUS RELEVANT BOCC ACTION: None.
CONTRACT/AGREEMENT CHANGES: N/A
STAFF RECOMMENDATIONS: Approval.
TOTAL COST: TBD INDIRECT COST:
DIFFERENTIAL OF LOCAL PREFERENCE:
BUDGETED: Yes X No
COST TO COUNTY: SOURCE OF FUNDS:
REVENUE PRODUCING: Yes No AMOUNT PER MONTH Year
h' Y g g
APPROVED BY: County Attorney OMB/Purchasin Risk Management AS
DOCUMENTATION: Included Not Required
DISPOSITION: AGENDA ITEM #
Revised 6r 15
BEFORE THE PUBLIC SERVICE COMMISSION
DFITML CUSTOMER NOTICE
TO THE CUSTOMERS OF
K W RESORT UTILITIES CORP.
AND
ALL OTHER INTERESTED PERSONS
RE: DOCKET NO.150071-SU
APPLICATION FOR INCREASE IN WASTEWATER RATES IN
MONROE COUNTY BY K W RESORT UTILITIES CORP.
DATED: October 29, 2015
Receveci
I
K W Resort Utilities Corp. (the `Utility") is a wastewater utility whose corporate
offices are located at 6630 Front Street, Key West Florida 33040. The Utility's wastewater
facilities are located in Monroe County, Florida.
On July 1, 2015, the Utility flied an application with the Florida Public Service
Commission (the "Commission") for an Increase in iti wastewater rates to its customers in
Monroe County based an an historical test year ending December 31, 2014. The application
Is assigned Docket No.1SO071-SU and September 22, 2015 was established as the official
date of Kling.
The Utility is requesting a rate increase because the existing rates do not provide
sufficient revenues to cover the required expenses of operations on a going forward basis
and an opportunity to earn a fair return on the Utility's investment in used and useful
property for the public use. The rate of return on equity requested in this proceeding is
9.36%. The overall rate of return requested is 8.02%. The Company's last rate proceeding
before the Commission was in Docket No. 070293-SU, utilizing a test year ending December
31, 2006, which culminated in Order No. PSC 09-00S7-FOF-SU dated January 27, 2009.
The Utility has incurred substantial additional operating costs and capital investment
AD of the Information on file at the Commission is open to the public and is available
for review at the Commission offices in Tallahassee and on its website:
. The MFRs
filed by the Utility are also available for inspection at the following locations:
Monroe County Public Library
Hours:
700 Fleming Street
Monday - Tuesday: 9:30 am. to 6:00 p.m.
Key West, FL 33040
Thursday - Friday— 9:30 a.m. to 6:00 p.m.
Wednesday: 9:30 am. to 8:00 p.m.
Saturday: 10:00.am. to 6:00 p.m.
Sunday: CIOR- d
K W Resort Utilities Corp.
Office Hours:
6630 Front Street
Monday through Friday
Key West, FL 33040
7:30 a.m. to 4:30 p.m.
The test period for setting rates Is the historical average thirteen -month period ended
December 31, 2014.
The current wastewater rates and the Utility's requested final wastewater rates are
set forth at the end of this notice. The flnalwastewater rates are subject to change based on
Information gathered at the customer meeting, further Staff review, and the final decision by
the Commissioners.
The Utility is not requesting any changes to its service availability charges. Even
though not requested to do so, the Commission may review and adjust service availability
charges.
The following tentative schedule was established by the Commission for the
remaining major events in the Utility's rate case (a customer meeting will be scheduled and
you will be provided with a separate notice of its date, time and location):
&&edule Item
Pue Date
Staff Audit Report
10/16/2015
Utility's Response to Audit
10/30/2015
Customer Meeting
12/10/2015
Staffs Recommendation on PAA
02/18/2016
Agenda Conference on PAA Rates
03/01/2016
PAA Order Issued
03/21 /2016
Protest Period Expires
04/11/2016
Consummating Order Entered
04114/2016
E
Any person who wishes to comment or provide information to Commission staff may
do so at the meetings, either orally or in writing. Other written comments regarding the
Utility and the proposed rates, or requests to be placed an the mailing list for this case. may
be directed to this address:
Florida Public Service Commission
Director. Office of Commission Clerk
2540 Shumard Oak Boulevard
Tallahassee, Florida 32399-0870
A courtesy copy of written comments and complaints may be mailed/emailed to the
following;
Martin S. Friedman, Esquire
Friedman & Friedman, P.A.
766 North Sun Drive, Suite 4030
Lake Mary, Florida 32746
All correspondence should refer to "Uoeket No.150071-SU, K W Resort Utilities Corp. --
Yaw letter will placed in the correspondence file of this docket. You may also submit
comments through the Florida Public Service Commission's toll -free facsimile line at 1-800-
511-0809, the Commission's e-mail at contactOpscstate.fLus, or the Commission's Website
available at
If you wish to contact the Florida Public Service Commission regarding complaints
about service, you may call the Commission's Division of Consumer Assistance and Outreach
at the followings toll -free number 1-800.342-3552.
This notice was prepared by the Utility and approved by Commission staff for
distribution by the Utility to its customers. Ifyou have any questions, please call the Utility's
office at (305) 295-3301.
K W Resort Utilities Corp.
0
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ROMMUd
Anal Rain
Base FacHlty Charp all Meter Stu
$17.61
$35.26
Charge per 1,000 plbm
$3.87
$7.66
10.000 pkn cap
General Service
Base Fadllty Charge by Meter Size
5/8" x 3/4 "
$17.81
$35.26
1•
$44.53
$88.17
1.5"
$89.05
$176.32
Y
$142.47
$282.09
3'
$284.95
$564.20
4"
$445.24
$8B158
6'
$890.49
$3,763.17
on
$1,602.96
$3,173.66
r Turbo
$2,048.10
$4,055.24
Charp per 1,000 pitons
$4.64
$9.i9
fimbimWater
Charge per 1,000 p1lom
$0.68
$L35
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[S-mog
larpsvAmmlngpool
$IOS 35
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Swimmin Pool
331.31
igg
Loads
cheme per1.000 PROm
$4.64
$9.19
Minlmum Charge 1195 000 liars— 20 ERCs 0 250 Vd, 31 da
S719.20
$ 424,02