The City’s Utility System currently has three (3) bulk wastewater, two (2) bulk water and one (1) bulk reclaimed water customers. They are as follows:
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Pasco County bulk wastewater and reclaimed water;
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the City of Port Richey bulk water and wastewater;
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and Florida Governmental Utilities Association (FGUA), bulk water and wastewater.
All three customers have established methodology rate structures under separate current or former inter-local agreements. Due to Pasco County being a partial owner of the City’s wastewater treatment plant, it was recommended by the consultant to staff not to include the County in the analysis. Subsequent to May 1, 2019 the City of Port Richey allowed its bulk water purchase agreement with the City to expire. As City Council is aware, the FGUA water and wastewater system will be acquired by Pasco County Utilities in 2022. Because of these scenarios, staff is of the opinion that a bulk rate for water and wastewater should be identified as a “pay as you go” charge without the need for inter-local agreements. These rates would be identified in accordance with industry accepted methodologies, the American Water Works Association (AWWA) and the Water Environment Federation (WEF) for guidance.
In 2011 the City contracted with Burton & Associates to perform a bulk water cost analysis study in order to establish an accurate bulk rate to be included in the City’s Rate Ordinance. Burton & Associates was given the task to complete this study and analysis. As recommended in the study, periodic updates to the analysis was recommended to account for any changes in overall cost to provide bulk water and wastewater services. In October of 2018 staff assigned the task of performing an updated wholesale water and wastewater rate analysis with Stantec Consulting Services Incorporated formerly known as Burton and Associates. Subsequent to the completion of the attached analysis and City Council’s consideration for approval of the analysis, is the requested first reading of the ordinance adopting the rates as identified in the 2018 analysis. The report identifies the proposed bulk water rate at $4.8642 per thousand gallons and maintains the existing language for the Tampa Bay Water (TBW) unitary rate pass through and the recommended four (4) percent automatic rate inflator remains in the Ordinance. The proposed bulk wastewater rate identified is $4.1560 per thousand gallons. The proposed rates exclude the capital recovery rate and any impact fees payable to the City, the TBW pass through, and any pass through for disposal of wastewater.