www.mymanatee.org
Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - June 2, 2015
June 2, 2015 - Regular Meeting
Agenda Item #31


Subject
Ordinance 15-22 - Wastewater Facility Investment Fee Rates

Briefings
All

Contact and/or Presenter Information

Dan Schlandt, Deputy County Administrator, ext. 3732

Robert J. Ori, Public Management Resources Group, Inc., County's Utility Rate Consultant



Action Requested

Adopt Ordinance No. 15-22 to establish revised Wastewater Facility Investment Fees and to revise conditions for time payments for retail facility investment fees.



Enabling/Regulating Authority

Chapter 63-1598, Laws of Florida.

Section 163.31801, Florida Statutes



Background Discussion

Facility Investment Fees

  • On January 20, 2015, a worksession was held with the Board to discuss changes to our Sewer Facility Investment Fees per an update to our rate study and to discuss changes to the process for extension of sewer line facilities.  This ordinance and a separate ordinance also to be considered at this meeting (Ordinance No. 15-08) implement those changes as proposed at that worksession.  As discussed at that worksession, the new fees are necessary to adequately fund the county's participation in extending sewer service to new areas and these ordinances will provide for a more consistent process for addressing service in areas currently not served by the utility system.  
  • Proposed changes are also consistent with Local Development Agreements (LDAs) that have been approved by the Board recently as these proposed changes have been under review and development.
  • It is the policy of the Board of County Commissioners that any and all capital costs required to support growth in the Utility infrastructure be paid for by Facility Investment Fees (FIFs) collected from new Utility connections.
  • To update our current Facility Investment Fee study, Utilities contracted with Carollo, our Engineer of Record, and their sub-consultant, Public Resources Management Group (PRMG).  The "Wastewater Transmission Line Extension Fee Study" and the "Manatee County Wastewater Collection System Master Plan Cost Estimate" are attached.
  • This Ordinance establishes revised wholesale wastewater Facility Investment Fees and revised retail wastewater Facility Investment Fees for all meter sizes and customer classifications.
  • The Ordinance also provides general requirements authorizing credits against Facility Investment Fees.

Time Payments Agreements

  • This Ordinance also proposes some changes to the terms with respect to Time Payment Agreements.  These changes are unrelated to the changes proposed above for changes to the rates for Facility Investment Fees, but are designed to address Board discussion and staff recommendations concerning interest rates and terms for Time Payment Agreements.
  • Current time payments agreements charge an 8% annual interest rate.   The proposed change would set the interest rate as follows: 

Each year on January 1st the interest rate will be established using the Prime Interest Rate plus 3% for all time payment agreements entered into during that year.

  • This Ordinance would also change the maximum time frame for repayment from 15 years to 10 years.
  • The Ordinance would also delegate to the County Administrator the authority to execute and record satisfaction of the lien on the property upon receipt of full payment.
  •  Ordinance 15-22 shall be effective on October 1, 2015.
  • The Public Hearing on this Ordinance was originally advertised to be held at the Board of County Commissioner Regular Meeting on May 19, 2015.   The Public Hearing was opened at that meeting, public comment was allowed and then the meeting was continued to this date of June 2, 2015.


County Attorney Review
Other (Requires explanation in field below)

Explanation of Other

Staff has worked extensively with Maureen Sikora and Bill Clague to draft the ordinance.



Reviewing Attorney
Sikora

Instructions to Board Records

Please provide signed copies to Heather Dilldine (heather.dilldine@mymanatee.org), Amy Pilson (amy.pilson@mymanatee.org), and Michelle Balais (michelle.balais@mymanatee.org).



Cost and Funds Source Account Number and Name
N/A

Amount and Frequency of Recurring Costs
N/A


Attachment:  WW Trans Line Ext Fee Study (final).pdf
Attachment:  Affidavit of Publication - Ordinance No 15-22.pdf
Attachment:  Utility FIFs amendments wastewater Ordinance No 15-22 revised final2.pdf
Attachment:  Wastewater Collection System Master Plan Cost Estimate Summary.pdf