Volusia County starts study of water, sewer rates

By Al Everson
BEACON STAFF WRITER

posted Jun 21, 2009 - 8:06:55am

Volusia County has contracted with a Maitland firm to study county water and sewer rates.

The study could lead to a rate increase for county customers.

"I don't know if rates are going up," county Utilities Director Gloria Marwick said. "It's probably true because costs keep going up, and the many mandates we have to follow."

On June 4, he County Council June 4 unanimously agreed to pay Public Resources Management Group Inc. $75,000 for an in-depth analysis of the county's utility rates. This is the county's first utilities rate study since 2001.

The study will take about a year to complete. Any recommended changes in rates would become effective in the 2010-11 fiscal year.

This rate study will be different from studies in the past, because of the mandate from the St. Johns River Water Management District to find new sources of water.

"We've got to talk about alternative water supplies," Marwick said.

Once Public Resources Management Group is finished, their study will serve as a sort of master plan for future water sources and how to pay for them, Marwick said. In addition to rates, the consultant will also study the impact fees charged by the county for water and sewer service.

For the past several years, Volusia County has increased its water and sewer rates annually by the amount of the Consumer Price Index plus 1 percent.

The CPI is the federal government's official annual figure on inflation.

In recent months, local leaders have talked more often and more earnestly about developing water supplies other than groundwater.

The St. Johns River Water Management District is demanding Volusia and surrounding counties consider tapping the St. Johns River or desalinating sea water. This refined water would be distributed to local utilities for sale to their customers, perhaps as a blend with groundwater.

To treat and distribute water from alternative supplies will not be cheap.

For example, the Seminole County Regional Water Treatment Facility at Yankee Lake — often referred to as Yankee Lake, for short — or a desalination plant such as Coquina Coast in Flagler County, will not be quite costly.

Yankee Lake may cost more than $300 million, while Coquina Coast's price tag may reach or exceed $1 billion, according to current estimates.

If Volusia County is to be a partner in the development of the Yankee Lake project and thus to receive some of the treated river water, it may soon have to pay between $2 million and $3 million as part of its share in the venture.

Volusia County's payment would come out of the Utilities Department budget, Marwick said.

Alternative water may also involve capturing rainwater, and even storing stormwater for treatment for potable uses. Those sources also will require money to develop, and the money will come from the customers.

"Going to alternative water supplies is going to be very expensive," Marwick said. "Conserving will take some of the pressure off the water rates."

Conservation, county officials estimate, could reduce water usage by as much as 20 percent. The county last month ratified the new St. Johns River Water Management District water-conservation rules that limit lawn-watering to one day a week during Eastern Standard Time.

The new rules are countywide and include fines for violators. Volusia County's new law also enables the county to adopt even-stricter watering rules.

In addition to looking at alternative water sources, the consultants will study concerns raised by some of the county's water customers, Marwick said, such as people who want vacation rates while they are up north.

Residents who leave Volusia County for cooler places during the summer months have complained about having to pay a base rate or availability charge while they are away and no one is living in their homes and using water.

Volusia County has about 15,000 water customers, mostly on the west side of the county. Many are in DeBary, while others are on the north side of Deltona, and others are in and around Orange City.

(Read about Orange City's water rate increase)

Still others are in Cassadaga and Enterprlse.

The county also operates utility systems in Spruce Creek and parts of the Ormond Beach and Oak Hill areas.

The county currently charges $9.80 per month for water availability at a typical home, plus $3.03 per thousand gallons, for up to 7,000 gallons. The usage charge increases to $3.55 per thousand gallons for those who use between 7,001 and 14,000 gallons per month.

Residential sewer customers also pay a monthly availability charge of $14.83, plus $3.13 per thousand gallons, up to 14,000 gallons.

— al@beacononlinenews.com

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