Wednesday, December 2, 2020

Equitable / Inequitable

 

 

It has been stated that the current Marco Island Utility Rate Schedule is Equitable but, the facts indicate that it is Inequitable. This the first of several letters base on irrefutable facts that Utility Rate Schedule is inequitable.

Example No. 1:

I presented to Council at the October 19, 2015 Council Meeting a comparative analysis of large volume users. The comparison was Individually Metered Condominiums compared to high volume Commercial users, the Hilton, the Marriott and North Marco Utility.

The inequitable result deals with the Base Charges. That is the charge each customer pays even if they do not use one (1) gallon water or wastewater (sewage).

Water Base Charge comparison:

In fiscal year 2015 Individually Metered Condominiums consumed 31 million gallons of water and paid a base charge of $660,000.

In fiscal year 2015 the Hilton consumed 31 million gallons of water and paid a base charge of $13,000.

In fiscal year 2015 the Marriott consumed 78 million gallons of water and paid a base charge of $52,000.

Result: Individually Metered Condominiums paid a base charge of $647,000 in excess of the Hilton and $608,000 in excess of the Marriott.

Is that Equitable???

Wastewater (Sewage) Base Charge:

In fiscal year 2015 Individually Metered Condominiums produced 31 million gallon of wastewater (sewage) and paid a base charge of $514,000.

In fiscal year 2015 the Hilton produced 31 million gallons of sewage and paid a base charge of $8,000 and I adjusted that dollar amount for the fact that they pay $1.09 per thousand gallons of sewage to be $42,000.

In fiscal year 2015 the Marriott produced 78 million gallons of wastewater (sewage) and paid a base charge of $33,000 and I adjusted that dollar amount for the fact that they too pay $1.09 per thousand gallons of sewage to be $118,000.

In fiscal year 2015 North Marco Utility produced 25 million gallon of wastewater (sewage) and paid a base charge of $8,000 and I adjusted that for the fact that they pay $1.09 per thousand gallons of sewage to be $336,000.

Result: Idividually Metered Condominiums paid a base charge of $443,000 in excess of the Hilton, $396,000 in excess of the Marriott and $478,000 in excess of North Marco Utility.

Is that Equitable???

The results of this comparative analysis clearly indicate that one class of Utility customer is paying a significant amount of base charges versus three commercial accounts.

Respectfully submitted,
Amadeo Petricca
331 Regatta Street
Marco Island, Florida 34145-5238
239-394-5464

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