Item 7AAGENDA ITEM # 7A
AUGUST 25, 2008
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Ordinance 80-08-76
Water and Sewer System Development Charges and Installation Charges
SUBMITTED BY: Donna Kaluzniak, Utility Directo
DATE: August 15, 2008
BACKGROUND: The City changes water and sewer impact and capital improvement fees, or System
Development Chazges (SDCs) when customers build new homes or businesses.
These fees pay for water and sewer treatment and conveyance needed for new homes and businesses.
The intent is to assure that "growth pays for growth" and to shelter the existing utility customers from
those financial impacts. The purpose of establishing cost-based SDCs is to bring equity between existing
and new customers.
Past changes in these rates were made in 1983 and 1992, and were not based on engineering analysis.
State law has changed since that time. The Florida Impact Fee Act now includes requirements for the
calculation of SDCs. Fees must be based on the most recent and localized data.
The attached Ordinance also includes amended language as noted during discussion at first reading. The
effective date is noted as December 1, 2008. Also, language was added to allow those property owners
required make septic to sewer connections to pay the existing impact fee prior to December 1, 2008. These
property owners will be allowed to delay connection until the expiration of their assessments, which seems
consistent with the Commission's intent. (Assessments on Beach Avenue expire in May, 2010, and in
Mazsh Oaks (f/k/a Section H) in November, 2011.)
Current impact fees for a single family home for JEA, Jacksonville Beach and Neptune Beach are attached.
Note that the other Beach cities have not updated their fees in many yeazs. It is also important to note that
there is no true compazability of SDCs from one city to another, as each utility is unique and rates aze
structured in very different ways.
BUDGET: The revised System Development Charges will impact the budget as new developments aze
built.
RECOMMENDATION: Approve Ordinance 80-08-76 revising the System Development Charges and
installation fees for water and sewer utilities.
ATTACHMENTS: 1. Proposed Ordinance 80-0$-76 as amended.
2. System Development Charges for Duval Cities.
REVIEWED BY CITY MANAGER: -1
AGENDA ITEM # 7A
AUGUST 25, 2008
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AGENDA ITEM # 7A
AUGUST 25, 2008
ORDINANCE NO. 80-08-76
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA,
AMENDING CHAPTER 22 OF THE CODE OF ORDINANCES,
UTILITIES, PROVIDING NEW "SYSTEM DEVELOPMENT CHARGES"
TO REPLACE WATER AND SEWER IMPACT FEES, AND PROVIDING
AN EFFECTIVE DATE.
BE ORDAINED BY CITY COMMISSION ON BEHALF OF THE PEOPLE OF
THE CITY OF ATLANTIC BEACH, FLORIDA:
SECTION 1. Sec. 22-16 of the Code of Ordinances of the City of Atlantic Beach, Florida,
is hereby amended to read as follows:
"Sec. 22-16. Connection charges; initial payment of minimum water rental.
(a) Upon the application of the owner or consumer for water service, the
connection charge shall be the actual cost of meter, meter box, valves, fittings, pipe,
tubing and labor. Connection charges will be established by the city commission from
time to time.
(b) The minimum water rental for the period from the date of installation to the
following minimum water billing date shall be collected at the time payment is made for
the connection charge.
(dc) The director of finance is directed to receive the connection charge and
cause same to be invested in interest-bearing securities that are most advantageous to the
city's interest. The securities shall be entitled "City of Atlantic Beach, Water Fund." The
water fund shall be used solely for capital improvements to the water plant and supply
system.
(ed) Payment of connection fees and -yes system development charges
shall be due and payable p~ie~e-tl~eon the date of issuance of a building permit. A
complete building~ermit application must be received on or before (effective date of the
ordinance) to be vested from the new fees. A complete building_permit application will be
considered complete when all items are submitted in accordance with the Building
Department Checklist. To remain vested the building_permit application must remain
current in accordance with requirements of the Florida Building Code and will be void if
AGENDA ITEM # 7A
AUGUST 25, 2008
expiration of the application occurs in accordance with any state or local law. System
development charges are non-transferrable.
Owners of all properties required to abandon existing septic tanks and connect to
the City sewer aver Section 22-74 shall be allowed to pay the existing system
development charges prior to December 1 2008 and delay cormection to the City sewer
until the expiration date of their assessment. (Assessments on Beach Avenue expire in
May 2010 and in Marsh Oaks (f/k/a Section H) in November, 2011.)
For new and existing buildings or structures, the city manager may allow payment
of fees on an extended payment plan for up to fifteen (15) years or the remaining life of
an existing mortgage, whichever is less, if the owner has demonstrated to the satisfaction
of the city manager that the lump sum payment will constitute a hardship to the applicant.
A lien for the amount due shall be executed in_recordable form reflecting the payment
schedule, and recorded at the applicant's expense. Upon all payments being made in full,
the lien shall be released of record."
SECTION 2. Sec. 22-28 of the Code of Ordinances of the City of Atlantic Beach, Florida,
is hereby amended to read as follows:
"Sec. 22-28. Water system development charges, installation
charges, etc.
The following schedule of rates and installation charges for water connections, facilities,
service and water provided or furnished by the city through its waterworks system is
hereby adopted and established:
(1) Water EBtte~r tap and meter installation charges.
Charges for providing and approving connections to the water system with installation
performed by the city are as follows and shall be in addition to system development
charges.
a. All units• Cost for labor and materials as provided in section 2-368 of the city code.
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AGENDA ITEM # 7A
AUGUST 25, 2008
Approved utility contractors may construct larger services at their own expense, but will be
subject to atwo-hundred-dollar inspection fee.
All new construction, rehabilitation and/or remodeling will require cross-connection control
devices and shall be assessed an inspection fee as follows:
Two-inch and under ..................................................................... $ 3x5:98 50.00
Over two-inch ..............................................................................200.00
Reinspection visit ...........................................................................3.x5:88 50.00
b. Meter charge. All meters will be furnished by the city and the cost is included in the
established installation charge.
c. Change in service size. Whenever a user requests a change in the size of a service
previously installed, such user shall accompany such request with payment of the same
charges above, together with any meter cost involved, as are applicable to
the new service requested. The user shall also be required to pay any and all increases in
capital improvement charges from the elf existing meter size to the ene meter size
requested, whether or not the eld existin service was required to pay any fees, utilizing
the rates in effect at time of request.
d. Change in service location. Whenever a user requests a change in location of a
service connection previously installed, such user shall accompany such request with
payment of the same charges, per schedule (1)a., for installation.
e. System development charge.
Size of Meter
(inches) Charge
3/4 $ X5-89 1,140.00
1 --~5~~8 1,904.00
11/2 t,n~ 3,796.00
AGENDA ITEM # 7A
AUGUST 25, 2008
2 -1;~:AA 6,076.00
3 3;2-59:98 11,400.00
4 ~4-2:98 19,004.00
6 X889:99 37,996.00
8 -15;889:A8 60,796.00
Disposition, use of revenues. All revenues collected by the city for water e-ap'
system development charges shall be deposited and held in a special fund to be known as and
hereby designated "the water capital improvement fund". The monies deposited and held in said
fund and all interest accrued thereto shall be used only for the improvements, upgrades or
expansion of the water system of the city."
SECTION 3.
(a) Sec. 22-170 of the Code of Ordinances of the City of Atlantic Beach,
Florida, is hereby amended to read as follows:
"Sec. 22-170. ~a~~~et-€ees System development charge.
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For each new connection to the Citessystem of sewerage, the following_system
development charge shall be applicable:
Size of Water Connection (meter size)
Ch
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(inches) g
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%" $4,050.00
1" 6,764.00
AGENDA ITEM # 7A
AUGUST 25, 2008
1 ~z" 13, 487.00
2" 21,587.00
3" 40,500.00
4" 67,514.00
6" 134,987.00
8" 215,987.00
The sewer svstem development charges are based upon the size of the water meter
serving the requested connection. In the event the city does not provide water service to
the propertyrequesting sewer service, the city shall determine the appropriate charge
based upon the existing water service from another purveyor, the proposed water service
size from another purveyor or other such comparable determination method.
Disposition, use of revenues. All revenues collected by the city for sewer svstem
development charges shall be deposited and held in a special fund to be known as and
hereby designated "the sewer capital improvement fund". The monies deposited and held
in said fund and all interest accrued thereto shall be used only for improvements,
upgrades or expansion of the sewer system of the city."
(b) Sec. 22-171 of the Code of Ordinances of the City of Atlantic Beach, Florida, is
hereby amended to read as follows:
"Sec. 22-171. Payment of connection fees and i~~ees svstem development
charges.
~) Payment of connection fees and ~ system development charges
shall be due and payable on the date of issuance of a building permit. A complete
building_ ep rmit application must be received on or before (effective date of the
ordinance) to be vested from the new fees. A complete building_permit application will be
considered complete when all items are submitted in accordance with the Building
Department Checklist. To remain vested the building_permit application must remain
current in accordance with requirements of the Florida Building Code and will be void if
expiration of the application occurs in accordance with any state or local law. S sy tem
development charges are non-transferrable.p~~~m°^* ^~°^r~°°+~^„ ~ °~ °ra °..~tel~I
Owners of all properties required to abandon existing septic tanks and connect to
the City sewer as per Section 22-74 shall be allowed to pay the existing s stem
development charges prior to December 1, 2008 and delayconnection to the Cit sY ewer
until the expiration date of their assessment. (Assessments on Beach Avenue expire in
May, 2010, and in Marsh Oaks (f/k/a Section H) in November, 2011.)
For new and existing buildings or structures, the city manager may allow payment
of fees on an extended payment plan for up to fifteen (15) years if the owner has
demonstrated to the satisfaction of the city manager that the lump sum payment will
constitute a hardship to the applicant. A lien for the amount due shall be executed in
AGENDA ITEM # 7A
AUGUST 25, 2008
recordable form reflecting the payment schedule. Upon all payments being made in full, a
release of lien shall be recorded."
(c) Sec. 22-172 of the Code of Ordinances of the City of Atlantic Beach, Florida is
hereby amended to read as follows:
"Sec. 22-172. Disposition of h~~-Re~ees svstem development charges.
All revenues collected by the city through sewer h~rf-a~fees svstem development
charges shall be held in a special account to be known as the wastewater system capital
improvement account. The money deposited and held in said account and all interests
accrued thereto shall be used only for the improvement, expansion, and/or replacement of
the wastewater collection, treatment, and disposal system of the city."
SECTION 4. This Ordinance shall take effect on the--l-AA~'
.December 1, 2008.
PASSED by the City Commission on first reading this day of , 2008.
PASSED by the City Commission on second and final reading this day of
2008.
ATTEST:
DONNA BARTLE
City Clerk
JOHN S. MESERVE
Mayor, Presiding Officer
Approved as to form and correctness:
ALAN C. JENSEN, ESQUIRE
City Attorney