1. Water and Wastewater Capital Charge Update Utilities Department Orange County Board of County Commissioners February 26, 2013

2. Background Level of Service Study Capital Charge Update Customer Impact Next Steps Presentation Outline 2

3. Background Level of Service Study Level of Service Study Capital Charge Update Capital Charge Update Customer Impact Customer Impact Next Steps Next Steps Presentation Outline 3

4. Background Charges are paid by new development for water and wastewater capacity Capital charges are calculated for the amount of water or wastewater capacity needed to serve one home (LOS) Current Charges: $1,950 per home (water) $3,668 per home (wastewater) 4

5. Background Background Level of Service Study Capital Charge Update Capital Charge Update Customer Impact Customer Impact Next Steps Next Steps Presentation Outline 5

6. Level of Service Study Determined actual Level of Service for single family homes Recommend changing level of service for new single family homes Water:350 to 275 gpd Wastewater:300 to 225 gpd 6

7. LOS Study 7

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9. Level of Service Study 9

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11. Level of Service Study Commercial Factors Factors convert commercial demands to equivalent number of single family homes OCU has 61 commercial factors No Change:44 Decrease: 12 Modify: 4 Increase: 1 11

12. Level of Service Study Small Restaurants Restaurants are charged per seat – Consistent with most utilities in Florida Restaurants with more than 200 seats – Use 25% more water per seat Propose reducing per seat factor – Factor for first 100 seats set at 75% of full value – Smaller restaurants get a full 25% reduction – All restaurants benefit 12

13. Background Background Level of Service Study Level of Service Study Capital Charge Update Customer Impact Customer Impact Next Steps Next Steps Presentation Outline 13

14. Capital Charge Update Per resolution, reviewed and updated every 4 years Based on cost of existing and future capacity Growth to “pay its own way” Cannot exceed full recovery cost Based on new Level of Service 14

15. Capital Charge Update Cost per home WaterWastewaterTotal Current$1,950$3,668$5,618 Proposed$1,791$3,346$5,137 $ Change-$159-$322-$481 % Change -8.2% -8.8% -8.6% 15

16. Capital Charge Update 16

17. Capital Charge Update 17

18. Capital Charge Update 18

19. Background Background Level of Service Study Level of Service Study Capital Charge Update Capital Charge Update Customer Impact Next Steps Next Steps Presentation Outline 19

20. Customer Impact Typical reductions in capital charges Customer TypeReduction ($)Reduction (%) One Single Family Residence -$481-8.6% Hotel 200 Rooms -$48,100-8.6% Multi-Family 33 one bedroom units 33 two bedroom units 34 three bedroom units -$82,068-18.1% 20

21. Customer Impact Typical reductions in capital charges Customer TypeReduction ($)Reduction (%) Small Restaurant 100 seats -$17,653-31.4% Large Restaurant 350 seats -$29,678-15.1% Retail Space 2 bathrooms -$581-8.6% Office 20,000 sq. ft. -$3,213-8.6% 21

22. Background Background Level of Service Study Level of Service Study Capital Charge Update Capital Charge Update Customer Impact Customer Impact Next Steps Presentation Outline 22

23. Next Steps BCC Workshop 02-26-13 DAB Workshop03-06-13 DAB Recommendation03-20-13 LPA Workshop04-18-13 BCC Comp Plan Adoption05-14-13 LPA Recommendation05-16-13 BCC Public HearingJune 2013 23

24. 24 Water and Wastewater Capital Charge Update Utilities Department Orange County Board of County Commissioners February 26, 2013

25. Factors That Decrease 25 Use TypeCurrent FactorProposed Factor Multi-Family - 1 bedroom0.583/unit0.500/unit Multi-Family - 3 bedrooms1.000/unit0.833/unit Restaurant/Cafeteria - First 100 seats 0.100/seat0.075/seat Restaurant 24 hours - First 100 seats 0.167/seat0.125/seat Bar/Cocktail Lounge - First 100 seats 0.067/seat0.050/seat Warehouse Office Office SF plus all bathrooms plus Warehouse Fixture Units Office SF plus 1 bathroom plus Warehouse Fixture Units

26. Factors That Decrease 26 Use TypeCurrent FactorProposed Factor College or Technical School Outside of Typical Campus 0.067/student seat0.025/student seat Student Housing – 1 bedroom 0.583/unit0.500/unit Student Housing – 3 bedrooms 1.000/unit0.833/unit Hotel – 1 bedroom suite0.583/unit0.500/unit Hotel – 3 bedroom suite1.000/unit0.833/unit Animal Care0.160/Kennel Run0.091/Kennel, Cage or Stall

27. Modified Factors 27 Use TypeCurrent FactorProposed Factor Dentist0.833/dentist0.650/wet chair Medical Office0.833/doctorFixture Units Vehicle Fueling Stations1.000/toilet roomFixture Units Hair Salon Engineering Study to determine per pedicure station flow 0.300/pedicure station

28. Factors That Increase 28 Use TypeCurrent FactorProposed Factor Irrigation0.125/1000 SF0.159/1000 SF

29. Residential Factors 29 EstablishmentUnitERC Factor Single family home, detached or townhome, with water meter less than 1 inch Home1.000 Single family home, with water meter 1 inch or largerBy fixture unitsN/A Duplex, 1 or 2 bedroomsEach half of duplex0.833 Duplex, 3 or more bedroomsEach half of duplex1.000 Multi-family, efficiency or 1 bedroomApartment0.500 Multi-family, 2 or more bedroomsApartment0.833 Mobile home, 1 or 2 bedroomsHome0.667 Mobile home, 3 or more bedroomsHome0.833

30. Non-Residential Factors 30 EstablishmentUnitERC Factor Animal care facility/veterinary clinic Kennel, cage, or stall 0.091 Bowling alley (add for restaurant and bar seats that are separated) Bowling lane0.333 Church (add for residences, weekday schools, and daycare facilities) Seat0.017 Hair salon (add 0.3 ERCs for each pedicure station)Operator station0.300 Hotel room or one-bedroom hotel suite (add for food service, meeting and banquet rooms, self-service laundries, and major facilities attracting non-guests) Room or suite 0.500 Hotel suite, two or more bedrooms (add for food service, meeting and banquet rooms, self-service laundries, and major facilities attracting non-guests) Suite0.833 Industrial/production facility, without showers (add for food service and industrial/production process demands) Employee0.050 Industrial/production facility, with showers (emergency showers not included, add for food service and industrial/production process demands) Employee0.117

31. Non-Residential Factors 31 EstablishmentUnitERC Factor Irrigation 1,000 sq. ft. of irrigable area 0.159 Laundry, self-serviceWashing machine1.333 Office building (add for food service) 1,000 sq. ft. gross floor area 0.334 Retail spaceBy fixture unitsN/A Shell building (unfinished space) with fixtures present (Exception: if building is multi-unit with fixtures located in common areas, apply “office building” factor instead of fixtures) By fixture unitsN/A Trailer park (overnight)Each space0.333 Warehouse/office, 3,000 sq. ft. or lessBy fixture unitsN/A Warehouse/office, larger than 3,000 sq. ft. By “office building” factor for office area. Warehouse area by bathroom fixture units as required by Plumbing Code (2 WC, 2 Lav, & 1 D.F.) plus any non-bathroom fixtures located in warehouse area

32. Non-Residential Factors 32 EstablishmentUnitERC Factor FOOD SERVICE FACTORS If a restaurant eligible for a 25% capital charge reduction for the first 100 seats has mixed bar/restaurant seating, the reduction will apply to restaurant seats first, then to bar seats Fast food classification applies to facilities with no table service, glassware, or washable plates and utensils Restaurant, any type, less than 20 seatsBy fixture unitsN/A Restaurant/cafeteria, per seat, first 100 seatsSeat0.075 Restaurant/cafeteria, per seat, seats other than first 100 Seat0.100 Restaurant, twenty-four hour, per seat, first 100 seatsSeat0.125 Restaurant, twenty-four hour, per seat, seats other than first 100 Seat0.167 Restaurant, fast food, per seatSeat0.050 Bar/cocktail lounge, per seat, first 100 seatsSeat0.050 Bar/cocktail lounge, per seat, seats other than first 100Seat0.067

33. Non-Residential Factors 33 EstablishmentUnitERC Factor Dentist officeWet chair0.650 Medical officeBy fixture unitsN/A HospitalPer bed0.833 Nursing homePer bed0.417 Extended care facility, efficiency or one bedroom (no additional charge for staff-operated facilities supporting residents’ daily living activities) Housing unit0.500 Extended care facility, two or more bedrooms (no additional charge for staff-operated facilities supporting residents’ daily living activities) Housing unit0.833 Meeting and/or banquet rooms (seats = total sq. ft./15 sq. ft.) Seat0.017 TheaterSeat0.010 Theater (dinner)Seat0.067

34. Non-Residential Factors 34 EstablishmentUnitERC Factor Daycare or preschool Child, per permitted occupancy 0.025 Elementary school or kindergartenStudent seat0.025 Middle and high schoolsStudent seat0.067 College or technical schoolStudent seat0.067 College or technical school outside of a typical campusStudent seat0.025 Student housing, one bed (add for food service)Housing unit0.500 Student housing, two beds (add for food service)Housing unit0.583 Student housing, three beds (add for food service)Housing unit0.833 Student housing, four or more beds (add for food service) Housing unit1.000

35. Non-Residential Factors 35 EstablishmentUnitERC Factor Vehicle fueling station/convenience store (add for vehicle wash and repair bays) By fixture unitsN/A Vehicle repair/maintenance facility (add for additional uses) Repair bay0.250 Vehicle wash facility (or by engineer’s estimate if wash water recycle system is proposed) Wash bay3.200

36. Rates Comparison 36

37. Rates Comparison 37

38. Rates Comparison 38