Resolution 306-2002
RESOLUTION306 -2002
A RESOLUTION OF THE MONROE COUNTY BOARD OF
COUNTY COMMISSIONERS ADOPTING POLICIES AND
GUIDELINES ON STANDARDS OF REASONABLENESS FOR
CENTRAL SEWER CONNECTION FEES AND MONTHL Y
CHARGES AND PUBLIC FINANCIAL ASSISTANCE TO
WASTEWATER SYSTEMS AND ECONOMICALLY
DISADV ANT AGED HOUSEHOLDS
WHEREAS, on June 20, 2002, the Board of County Commissioners (BOCC)
directed its staff to prepared a Programmatic Implementation Plan to guide the funding
and scheduling of wastewater projects identified in the Sanitary Wastewater Master Plan;
and,
WHEREAS, a significant element of the Programmatic Implementation Plan is
the establishment of policies on the standards of "reasonableness" for connection fees and
monthly user charges and the level of public assistance to be provided wastewater
projects and economically disadvantaged households; and,
WHEREAS, the County staff has identified the following policy objectives for
the establishment of such standards:
o To encourage the initiation and sponsorship by the BOCC through the
FKAA of cost effective wastewater improvements by providing a
quantitative basis for evaluating and comparing projects as to their
viability and priority for government financial support;
o To achieve some uniformity in connection/impact fees and user charges
throughout unincorporated Monroe County to equitably offset the higher
cost of implementation presented by smaller and more remote areas;
o To enable the BOCC to more efficiently and effectively allocate
federal/state grants and County financial resources to projects in order to
optimize the number of projects that can be undertaken and the number of
cesspits and substandard systems replaced;
o To provide a basis for determining the level and type of public financial
assistance required for wastewater systems and for economically
disadvantaged households on a project by project basis; and
o To provide a policy basis for FKAA to undertake projects and establish its
rate and connection fee structure for wastewater projects; and
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WHEREAS, the U.S. Environmental Protection Agency has recommended in its
publications standards of "reasonableness" on the costs of wastewater projects;
WHEREAS, The U.S. Environmental Protection Agency defines "reasonable"
costs as no more than 2% of the annual median household income for the area, which
include monthly service charges and capital costs amortized over a 20-year period; and,
WHEREAS, the median annual household income for Monroe County in 2001
was $52,100, which means that the threshold for "reasonable" costs for households with
median incomes would be $87 per month; and,
WHEREAS, the County staff has prepared policies on standards of
"reasonableness" of costs for central wastewater projects and economically disadvantage
households based on the U.S. Environmental Protection Agency's recommendations;
WHEREAS, the County staff has also prepared specific policies on levels and
types of public financial assistance to wastewater projects and economically
disadvantaged households based on these above standards; and,
WHEREAS, the BOCC has reviewed the proposed policies on standards and
public financial assistance prepared by the County staff to achieve the above policy
objectives; now therefore
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS,
MONROE COUNTY, FLORIDA THAT:
Section 1. The BOCC endorses the policy objectives for establishment of standards
of "reasonableness" for costs related to central wastewater projects.
Section 2. The BOCC approves the following standards for connection fees, monthly
charges, and total user charges for central wastewater systems:
A. Connection fees should be no more than approximately $2,700 per
Equivalent Dwelling Unit (EDU) after any federal/state grants or County
funds are applied.
B. The monthly service charge per EDU should be $35 or less per month,
excluding debt service costs.
C. The total fees and user charges per EDU should not be more than $87 per
month. These total fees and charges include all connection (capital) costs
amortized at 6% over 20 years; the out-of-pocket costs to property owners,
estimated at an average cost of $12.54 per month [estimated average cost
of $1,750 amortized at 6% over 20 years], for the decommissioning of
existing on-site systems and installation of laterals to connect at property
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line with central sewer system; and, monthly operations and maintenance
costs including any debt service costs.
Section 3. The BOCC recognizes that the above standards are intended to be
desirable "target" levels which the County should endeavor to meet; however, differing
circumstances and situations warrant discretion in their strict application.
Section 4. The BOCC establishes a policy that the level of public grant assistance
both local and federal/state to be provided projects shall be sufficient to ensure that per
EDU connection fees are no more than $2,700 and monthly user charges are $35 or less,
excluding any debt service. The BOCC states that in provision of this grant assistance,
the County's policy shall be to solely reduce the capital costs for such systems not
operations and maintenance (O&M) costs. The BOCC further states that except for such
assistance that may be provided to disadvantaged households, the out-of-pocket costs
incurred by property owners for the decommissioning of on-site systems and installation
of laterals to the property line, shall be borne by the property owner.
Section 5. The BOCC directs the staff to undertake all tasks necessary, including the
resolution of any financial, legal, and risk management issues, to establish a revolving
loan fund or escrow accounts using 304 Funds that would help underwrite or guarantee
wastewater projects and/or provide working capital.
Section 6. The BOCC establishes a policy of providing financial assistance to
economically disadvantaged households based on the 2 percent of annual median income
household "reasonableness" standard. The two classes of economically disadvantaged
households are "low income" (annual household income of between 80 to more than 50
percent of area median annual household income) and "very low income" (annual
household income of 50 percent or less of the area median annual household income).
Section 7. The BOCC directs the staff in coordination with the FKAA to develop
specific recommended administrative policies and procedures to implement a financial
grant assistance program for economically disadvantaged households.
Section 8. The BOCC directs the staff to transmit a copy of this resolution to the
Florida Keys Aqueduct Authority.
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PASSED AND ADOPTED by the Board of County Commissioners, Monroe
County, Florida at a regular meeting of said Board held on the 1 ih day of July, A.D.,
2002.
BOARD OF COUNTY COMMISSIONERS
MONROE COUNTY, FLORIDA
Mayor Charles "Sonny" McCoy
Mayor Pro Tern Dixie Spehar
Commissioner George Neugent
Commissioner Bert Jimenez
Commissioner Murray Nelson
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