Below you will find materials regarding the proposal from Environmental Utilities LLC to install central sewer on the Island. PIE encourages all stakeholders to be pro-active and keep informed about this important issue.
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you Updated 02.24.22
CENTRAL SEWER: Things to Know and FAQs
DOCKET No. 20200226-SU Environmental Utilities, LLC
How did we get here?
In 2017, Charlotte County (CC) commissioned a study to comply with state priorities in converting septic systems to central sewer. The resulting "Sewer Master Plan" identified areas of need in the County based on 3 criteria: 1. proximity to water 2. age of septic systems and 3. nitrate content in the water. Our area was evaluated on general summary data without any water quality testing in proximity to the Islands, and consequently was given a high priority score for conversion.
Rather than taking on the expense and responsibility of sewering the Islands, CC granted a Bulk Wastewater Treatment Agreement to Environmental Utilities, LLC (EU) which would allow them to own and operate a collection system to be hooked up to Charlotte County Utilities. In October of 2020 EU applied to the Florida Public Service Commission (PSC) for a certificate to install central sewer in a service area inclusive of Cape Haze, Knight Island, Don Pedro Island and Little Gasparilla Island. Cape Haze was subsequently removed from the service area.
What type of central sewer system will be installed?
According to the application data, the answer is to be determined. However, at the Administrative Hearing the engineer for EU, Jonathan Cole, identified the proposed system as a low-pressure "step" sewer system. The step system consists of an in-ground tank similar to a septic tank with a pump to siphon off liquids instead of a drain field. Below is a brochure from Charlotte County Utilities with a description of the low-pressure step system. Please review the second page where you will find the homeowners' maintenance responsibilities for the system. Note the passage about the alarm and power outages, and substitute "EU" for "CCU".
CENTRAL SEWER: Things to Know and FAQs
DOCKET No. 20200226-SU Environmental Utilities, LLC
How did we get here?
In 2017, Charlotte County (CC) commissioned a study to comply with state priorities in converting septic systems to central sewer. The resulting "Sewer Master Plan" identified areas of need in the County based on 3 criteria: 1. proximity to water 2. age of septic systems and 3. nitrate content in the water. Our area was evaluated on general summary data without any water quality testing in proximity to the Islands, and consequently was given a high priority score for conversion.
Rather than taking on the expense and responsibility of sewering the Islands, CC granted a Bulk Wastewater Treatment Agreement to Environmental Utilities, LLC (EU) which would allow them to own and operate a collection system to be hooked up to Charlotte County Utilities. In October of 2020 EU applied to the Florida Public Service Commission (PSC) for a certificate to install central sewer in a service area inclusive of Cape Haze, Knight Island, Don Pedro Island and Little Gasparilla Island. Cape Haze was subsequently removed from the service area.
What type of central sewer system will be installed?
According to the application data, the answer is to be determined. However, at the Administrative Hearing the engineer for EU, Jonathan Cole, identified the proposed system as a low-pressure "step" sewer system. The step system consists of an in-ground tank similar to a septic tank with a pump to siphon off liquids instead of a drain field. Below is a brochure from Charlotte County Utilities with a description of the low-pressure step system. Please review the second page where you will find the homeowners' maintenance responsibilities for the system. Note the passage about the alarm and power outages, and substitute "EU" for "CCU".
What will the connection fees be?
In December of 2020, EU owner Jack Boyer declined to give a commitment to a firm estimate. However, he did float a number of $20,000. for hook-up fees to individual Board members from both PIE and LGPOA (Little Gasparilla). At a PSC Commission Conference in January, EU was told bluntly by the Commission Chair not to return with a $20k connection fee as "fair and equitable" rates and charges. (You can watch the video of that Commission Conference HERE) Subsequently, when EU submitted their rates and tariffs portion of the application, the "Requested Service Availability Charge Per ERC" was reduced to $11,927.85. There is an additional $1,300 "Sewer Lateral Connection" fee to run the pipe from the road to the location of the equipment near your home.
Regardless, at this time the final connection fees and monthly rates have still not yet been determined. Costs could exceed the estimates by large measure and homeowners will likely be saddled with additional burdens, some of which should be included with the connection.
What will the average monthly charges be?
The Average Residential Bill listed in the Rates & Tariffs is $178.78, which is based on an average usage of approx. 2,500 gals/mo. The PSC prepared a Rate Case summary that was distributed at the Administrative Hearing, which cited a more realistic estimate based on an average usage of 4,000 gals/month. This would be over $250/month. This figure is more than twice the amount that a ratepayer on the mainland in Rotonda pays per month for water and wastewater combined.
Are there are additional costs associated with low-pressure systems that will not be included in EU’s proposed hook-up fee?
Yes, we anticipate additional expenses to the property owner that are not included in the connection fee.
If EU gets approved, will Charlotte County oversee this project?
No. Because EU, LLC is a private utility and not a subcontractor, Charlotte County will not oversee the project in its entirety. It will not make sure things are being done correctly by EU and it will not step in if EU becomes insolvent, can’t manage the project or folds its business.
Will there be any oversight for this project if EU is granted its permit?
There is no single entity that has oversight over the entire project for installation and maintenance. Each agency involved only participates in their portion of the project, i.e. the PSC, DEP, Army Corp, Florida Health Department, Charlotte County Building Dept., etc. There are many moving parts and no single point of responsibility. Once the certificate is granted, we would be essentially helpless to change the direction of the project.
Will there be grants available to offset the costs?
It is unlikely that EU as a private utility would qualify for grants the way Charlotte County would as a governmental agency on the mainland.
Will there be a pay-over-time plan available?
There has been no pay-over-time option offered by EU, LLC to date. In fact, EU has indicated that the stakeholders would have to pay the balance outright or get personal loans.
Will Islanders be able to get low-cost loans to hook up to sewer?
Right now, there are no plans and no guarantees that this type of funding would be available.
What other concerns has PIE raised about this application?
How do we stop this from happening?
At the January 2020 Annual Membership Meeting, the PIE membership voted to hire an attorney and stop the private utility from getting its certification. The PIE Board took action subsequent to the meeting to request an Administrative Hearing to challenge the application.
Is this the only opportunity to stop EU?
Essentially, yes. It is now or never on this application. Once the certificate is granted, it will be practically impossible to stop. Now is the time to make sure they do not get this certificate. The only way to do that is to keep pushing and fight them at the PSC.
What is the Administrative Hearing?
The hearing took place on February 8th & 9th in Venice. It was structured like a trial to guarantee adherence to the Florida statutes related to utilities. 3 commissioners from the PSC attended the hearing. At the "Technical Hearing" portion, PIE presented our case with experts who testified about:
What happens after the Administrative Hearing?
All of the parties of record will be submitting "Post-Hearing Briefs", which are summaries of their positions and arguments. The briefs are due March 16, 2022. The PSC staff will submit their recommendations to the Commission on April 14. And the Commissioners will make a ruling on the application at their Commission Conference on May 3.
We are confident in our case, but we need your continued financial support to see it through to the ruling in May.
In December of 2020, EU owner Jack Boyer declined to give a commitment to a firm estimate. However, he did float a number of $20,000. for hook-up fees to individual Board members from both PIE and LGPOA (Little Gasparilla). At a PSC Commission Conference in January, EU was told bluntly by the Commission Chair not to return with a $20k connection fee as "fair and equitable" rates and charges. (You can watch the video of that Commission Conference HERE) Subsequently, when EU submitted their rates and tariffs portion of the application, the "Requested Service Availability Charge Per ERC" was reduced to $11,927.85. There is an additional $1,300 "Sewer Lateral Connection" fee to run the pipe from the road to the location of the equipment near your home.
Regardless, at this time the final connection fees and monthly rates have still not yet been determined. Costs could exceed the estimates by large measure and homeowners will likely be saddled with additional burdens, some of which should be included with the connection.
What will the average monthly charges be?
The Average Residential Bill listed in the Rates & Tariffs is $178.78, which is based on an average usage of approx. 2,500 gals/mo. The PSC prepared a Rate Case summary that was distributed at the Administrative Hearing, which cited a more realistic estimate based on an average usage of 4,000 gals/month. This would be over $250/month. This figure is more than twice the amount that a ratepayer on the mainland in Rotonda pays per month for water and wastewater combined.
Are there are additional costs associated with low-pressure systems that will not be included in EU’s proposed hook-up fee?
Yes, we anticipate additional expenses to the property owner that are not included in the connection fee.
- Electric: the system pump requires a separate electric panel, installed by a licensed electrician at the expense of the property owner.
- More electric: If the owner has maxed out their main electric grid with pool equipment or other large-draw items, the panel will need an expensive upgrade to accommodate the new panel.
- Generator: In the event of a power outage the system will be unable to function. Homeowners will need a generator to keep the system running to avoid sewage back-up.
- Tree removal: Landscaping and hardscaping around the septic area will need to be cleared at the expense of the homeowner to gain access to crush & fill the septic tank.
- New easement giveaway: Most utility easements are placed in the road right-of-way. EU is mandating a new utility easement that will encumber your property. It will go from the sewer equipment, located near the house to the connection in the road and will be mandated through the connection agreement without compensation to the homeowner.
If EU gets approved, will Charlotte County oversee this project?
No. Because EU, LLC is a private utility and not a subcontractor, Charlotte County will not oversee the project in its entirety. It will not make sure things are being done correctly by EU and it will not step in if EU becomes insolvent, can’t manage the project or folds its business.
Will there be any oversight for this project if EU is granted its permit?
There is no single entity that has oversight over the entire project for installation and maintenance. Each agency involved only participates in their portion of the project, i.e. the PSC, DEP, Army Corp, Florida Health Department, Charlotte County Building Dept., etc. There are many moving parts and no single point of responsibility. Once the certificate is granted, we would be essentially helpless to change the direction of the project.
Will there be grants available to offset the costs?
It is unlikely that EU as a private utility would qualify for grants the way Charlotte County would as a governmental agency on the mainland.
Will there be a pay-over-time plan available?
There has been no pay-over-time option offered by EU, LLC to date. In fact, EU has indicated that the stakeholders would have to pay the balance outright or get personal loans.
Will Islanders be able to get low-cost loans to hook up to sewer?
Right now, there are no plans and no guarantees that this type of funding would be available.
What other concerns has PIE raised about this application?
- Mandatory Hook-up: Charlotte County regulations require all homes to connect to central water and wastewater within 1 year of availability.
- No grandfathering of septic systems: regardless of age or condition.
- Access to homes: Some properties have physical constraints that will complicate how the applicant gains access to the property without leaving the boundaries or damaging the grounds.
- Disruption of traffic: Vehicles have only one point of entry/egress -- the car ferry. With normal traffic, service and construction trucks, delays at the ferry line in season can be an hour or more. This project could result in years of traffic issues.
- System maintenance and emergencies: The applicant has not addressed how the system will be serviced in the event of failure during a storm or other adverse conditions.
- Lifespan of the equipment: Salt air takes a heavy toll on mechanical and electrical equipment here. Equipment will need replacing when it fails, possibly at 5-year intervals. This proposal places too much responsibility on the homeowner at too great a cost.
- Environmental concerns: No water quality testing has been done in our area to prove a need for sewer. This project brings the potential for destruction of habitat and interference with endangered species such as the gopher tortoise.
- Potential of sewer spill in the Intracoastal: The risk of a central sewer leak with a subaqueous crossing is greater than the risk of one or more septic systems developing leaks
How do we stop this from happening?
At the January 2020 Annual Membership Meeting, the PIE membership voted to hire an attorney and stop the private utility from getting its certification. The PIE Board took action subsequent to the meeting to request an Administrative Hearing to challenge the application.
Is this the only opportunity to stop EU?
Essentially, yes. It is now or never on this application. Once the certificate is granted, it will be practically impossible to stop. Now is the time to make sure they do not get this certificate. The only way to do that is to keep pushing and fight them at the PSC.
What is the Administrative Hearing?
The hearing took place on February 8th & 9th in Venice. It was structured like a trial to guarantee adherence to the Florida statutes related to utilities. 3 commissioners from the PSC attended the hearing. At the "Technical Hearing" portion, PIE presented our case with experts who testified about:
- EU’s complete lack of facts to support the need for a sewer system (Dr. Robert Weisberg, Oceanographer)
- EU's proposal conflicts with Charlotte County regulations (Ellen Hardgrove, Land Use expert)
- EU’s lack of financial fortitude and ability to stay in business throughout the sewer process, as they don’t have the financial backing or loan guarantees to see them through the project. (Sherri Schultz, Forensic Accountant) NOTE: Ms. Schultz was released from her appearance at the hearing due to Covid concerns, but her testimony was entered into the record as if she had attended.
What happens after the Administrative Hearing?
All of the parties of record will be submitting "Post-Hearing Briefs", which are summaries of their positions and arguments. The briefs are due March 16, 2022. The PSC staff will submit their recommendations to the Commission on April 14. And the Commissioners will make a ruling on the application at their Commission Conference on May 3.
We are confident in our case, but we need your continued financial support to see it through to the ruling in May.
More information is available at the PSC website Docket # D20200226:
https://www.floridapsc.com/ClerkOffice/DocketFiling?docket=20200226
https://www.floridapsc.com/ClerkOffice/DocketFiling?docket=20200226