Item 6BAGENDA ITEM # 6B
OCTOBER 27, 2008
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Resolution 08-14
Proposed Interpretation of Water and Sewer System Development Chazges
SUBMITTED BY: Donna Kaluzniak, Utility Directo{C:/
DATE: October 20, 2008
BACKGROUND: On August 25, 2008, the City Commission passed an ordinance allowing for
new System Development Charges (impact fees), to be effective December 1, 2008.
The chazges for new development are based on the meter size for new homes and businesses.
However, there are certain circumstances where a new meter will not be installed. As an example, an
existing master-metered apartment complex plans to construct additional units. A similar situation
occurs when a new development is served by a meter larger than 10-inches, as the new System
Development Charges aze only delineated for meter sizes up to 8 inches.
Another issue regazds rebuilding of previously developed property when evidence of prior impact fee
payment is not available.
Because Equivalent Residential Units were a major part of the basis for our consultant's fee
recommendations, staff is proposing a methodology for using ERUs to determine the System
Development Chazges in these isolated instances. The use of ERUs to calculate SDCs is fairly
common throughout the country.
One ERU is equivalent to a single family home or a 3/a" meter, based on an average use of 350 gallons
of water and 300 gallons of wastewater per day. Single family homes, duplexes and triplexes would
be chazged as 1 ERU for each unit
Based on tables in the Florida Department of Health Rule 64E-6, apartments would be a charged
based on percentage of an ERU as follows:
Hotel, Resort = 0.7 ERUs
Hotel, Regulaz = 0.3 ERUs
1-bedroom apartmenbcondo = 0.3 ERUs
2-bedroom apartment/condo = 0.7 ERUs
3 or more bedroom apartment/condo = 1 ERU
Another issue staff wishes to clarify relates to rebuilding of existing improved properties. It is staff's
recommendation that System Development Charges will apply only to additional units, based on an
assumption that pre-existing units have already paid for capacity.
AGENDA ITEM # 6B
OCTOBER 27, 2008
BUDGET: The revised System Development Charges will impact the budget as new developments
aze built.
RECOMMENDATION: Adopt Resolution 08-14 outlining the methods for calculating System
Development Chazges for existing master-metered developments that aze expanding or for new
developments with meter sizes greater than 10 inches and chazging System Development Chazges
only for additional units on previously developed property.
ATTACHMENTS: Resolution 08-14.
REVIEWED BY CITY MANA
AGENDA ITEM # 6B
OCTOBER 27, 2008
RESOLUTION N0.08-14
A RESOLUTION OF THE CITY OF ATLANTIC BEACH, FLORIDA DESCRIBING
METHODOLOGY FOR DETERMINING WATER AND SEWER SYSTEM DEVELOPMENT
CHARGES FOR SPECIFIC DEVELOPMENTS
WHEREAS, Water and Sewer System Development Charges are one-time charges paid by new development to
finance construction of public facilities needed to serve them; and
WHEREAS, the City Commission passed Ordinance 80-08-76 providing new System Development Chazges on
August 25, 2008, to be effective December 1, 2008; and
WHEREAS, there are certain instances where the application of Ordinance 80-08-76 is not sufficiently detailed for
calculation of System Development Chazges for cases where customers are expanding an existing master-metered
development ;and
WHEREAS, there are instances where re-building of previously developed property occurs but how to chazge for
added or reconstructed units is not spelled out in Ordinance 80-08-76; and
WHEREAS, it is important to have a standard methodology for calculating System Development Chazges to ensure
that all customers seeking to connect to the utility's system beaz an equitable share of the cost of capacity that is invested in
both the existing and any future growth-related expansions to the system;
NOW, THEREFORE BE TT RESOLVED by the City of Atlantic Beach as follows:
Section 1. That the City of Atlantic Beach shall use the following methodology for calculating System Development
Charges for existing master-metered properties that are expanding, and for new developments with meter sizes greater than
10-inches.
1 Equivalent Residential Unit (ERU) = an equivalent chazge for a'/4" meter.
• Hotels, Resort = 0.7 ERUs per Room
• Hotels, Regulaz = 0.3 ERUs per Room
• Single Family, Duplex and Triplex Residences = 1.0 ERU Per Unit
• 1 Bedroom Apartments/Condos = 0.3 ERUs
• 2 Bedroom Apartments/Condos = 0.7 ERUs
• 3 or more Bedroom Apartments/Condos = 1.0 ERU
Section 2. That the City of Atlantic Beach, Florida shall require System Development Chazges only for additional
units for properties that were previously built upon. For example, if a 100-unit complex is demolished with 110 new units
built of the same size build back on the same site, then the System Development Charges will apply only to the 10 new units.
Passage adopted by the City Commission of the City of Atlantic Beach this day of
2008.
APPROVED AS TO FORM:
ALAN C. JENSEN, ESQUIRE
City Attorney
ATTEST:
Mayor
DONNA L. BUSSEY, CMC, City Clerk