Item L1
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BOARD OF COUNTY COMMISSIONERS
C ounty of M onroe
Mayor Sylvia Murphy, District 5
Mayor Pro Tem Danny Kolhage, District 1
TheFloridaKeys
Michelle Coldiron, District 2
Heather Carruthers, District 3
David Rice, District 5
County Commission Meeting
February 20, 2019
Agenda Item Number: L.1
Agenda Item Summary #5199
BULK ITEM: No DEPARTMENT: Waste Water
TIME APPROXIMATE: STAFF CONTACT: Kevin Wilson (305) 292-4441
2:00 P.M.
AGENDA ITEM WORDING: Approval of a Resolution of the Board of County Commissioners
of Monroe County approving a policy for collection of connection charges and system development
fees for the County owned, FKAA operated sewer systems in the County.
ITEM BACKGROUND: As new properties are developed in County owned / Florida Keys
Aqueduct Authority (FKAA) operated sewer systems, the FKAA must add connection points for
these parcels. Until now a County / FKAA interlocal agreement (ILA) provided for the County to
pay the cost of such connection points for properties developed after the original design and
construction contracts were entered. Construction is virtually completed on all systems. Properties
developed after substantial completion of the wastewater system should be responsible for the costs
of connecting to the central systems. These costs will vary depending on a number of factors
including within which system they are located, what type of connection they require, and when the
connections are needed.
When the initial plans for the wastewater systems were developed, the BOCC authorized the use of
revenues other than user fees to support development of the central systems because of the
overwhelming public purposes of cleaning nearshore waters and meeting the requirements of the
Florida Keys Area of Critical State Concern (ACSC) work plan. With the completion of the final
project (Cudjoe Regional) that objective is complete.
The cost of providing connection points for properties developed after completion of the project
should fall on the newly developed properties. The cost is the actual cost incurred by FKAA of
providing the connection point. This amount is variable based of the type of connection point
(gravity or low pressure) and distance from the property to the nearest available sewer line. In
addition, as with current properties, each property developed in the future should make a
contribution to the amortized cost of the full system equal to that borne by all properties within each
system. The latter is also known as a system development fee (SDF) and has been set for each
system owned by the County and operated by the FKAA as $4,500 as adjusted by the CPI from the
original date on which the particular special assessment program was initiated.
Staff recommends that BOCC adopt a policy by resolution that future properties within County-
funded wastewater systems be assessed the appropriate SDF by the County, which shall be collected
by the County in the form of wastewater special assessments, and that FKAA be authorized to
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charge each newly developed property the cost of providing the new connection point as found in its
fee schedule in a similar manner to the way they charge for a new water connection. FKAA staff
agrees with the staff recommendation.
PREVIOUS RELEVANT BOCC ACTION: At its 22 November 2016 meeting, the BOCC
approved an interlocal agreement with FKAA to provide funding for the provision of connection
points for properties developed after design of the Cudjoe Regional system was completed. There
are many interlocal agreements between the County and FKAA detailing how the various central
sewer systems will be funded.
CONTRACT/AGREEMENT CHANGES:
No
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
DIGITALLY STAMPED Resolution of Cnxn points 2 11 19 CH
2019-02-10 Cnxn Chg SDF Recommendation (KW)
ILA 11-22-2016 Payments for connection points
FINANCIAL IMPACT:
Effective Date: 20 February 2019
Expiration Date: N/A
Total Dollar Value of Contract: N/A
Total Cost to County: N/A
Current Year Portion: N/A
Budgeted: N/A
Source of Funds: N/A
CPI: N/A
Indirect Costs: N/A
Estimated Ongoing Costs Not Included in above dollar amounts: N/A
Revenue Producing: N/A If yes, amount:
Grant: N/A
County Match: N/A
Insurance Required: N/A
Additional Details: None
N/A
REVIEWED BY:
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Kevin Wilson Completed 02/05/2019 11:43 AM
Cynthia Hall Completed 02/05/2019 4:52 PM
Budget and Finance Completed 02/05/2019 5:00 PM
Maria Slavik Completed 02/05/2019 5:05 PM
Kathy Peters Completed 02/05/2019 5:05 PM
Board of County Commissioners Pending 02/20/2019 9:00 AM
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Attachment: DIGITALLY STAMPED Resolution of Cnxn points 2 11 19 CH \[Revision 2\] (Resolution ending payment for new sewer connections)
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Attachment: DIGITALLY STAMPED Resolution of Cnxn points 2 11 19 CH \[Revision 2\] (Resolution ending payment for new sewer connections)
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Attachment: DIGITALLY STAMPED Resolution of Cnxn points 2 11 19 CH \[Revision 2\] (Resolution ending payment for new sewer connections)
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BOARD OF COUNTY COMMISSIONERS
County of Monroe
Mayor Sylvia J. Murphy, District 5
Mayor Pro Tem Danny L. Kolhage, District 1
The Florida Keys
Michelle Coldiron, District 2
Heather Carruthers, District 3
David Rice, District 4
Memorandum
DATEʹ 10 February 2019
TOʹ BOCC
FROMʹ Kevin G. Wilson, P.E.
SUBJECT: BOCC Resolution for Collection of Future Sewer Connection Charges and System
Development Fees
Recommendation: Adoption of a resolution authorizing the FKAA to set and collect the connection
charge for properties receiving a building permit after 20 February 2019 and continuing the collection of
a CPI adjusted system development fee (SDF) by the County at the time of permit issuance for those
same properties.
Basis for Recommendation:
1. Connection point installation costs for future developments should be borne by the property
developer, not taxpayers.
2. Newly developing parcels should pay the same system development fees (adjusted for inflation) as
all users.
3. FKAA already collects water system connection fees and new sewer connection fees in sewer
systems it owns.
Background:
Historically on County owned and funded central sewer systems constructed and operated by the
FKAA, BOCC policy provided connection points only for existing developed properties. The
underlying basis for this policy was the assumption that providing a connection point at every parcel
could be used as an implication of a right to develop that would be used in a takings case.
In designing the systems, no connection points (either low pressure or gravity) were provided for
undeveloped parcels. It became evident during construction of the Cudjoe Regional system that new
development had and would continue to occur after the project had been designed and construction was
underway. The County and FKAA entered into an interlocal agreement (ILA) on 22 November 2016,
by which the County would pay $9,000 per EDU to FKAA for the addition of the connection points for
these newly developed parcels. The amount budgeted was based on an anticipated average cost per
connection of $9,000. Recently the FKAA has contracted for the remaining low pressure connections
needed to complete the Cudjoe Regional Wastewater System at a unit price of approximately $17,000.
The existing ILA applies to all County owned / FKAA operated sewer systems. As new properties are
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developed in these systems, the FKAA must add connection points for the newly developed parcels.
Until now an interlocal agreement (ILA) provided for the County to pay the cost of such connections for
properties in County-funded portions of wastewater systems that were developed after the original
design and construction contracts were entered. The construction is virtually completed on all systems.
The rationale used to support payment for the connection points by the County is that these parcels
developed during the period from end of design through construction of the system should receive the
same cost support from tax revenues as existing developed properties. Now that construction is
complete, the cost of adding a new connection should be borne by the developer rather than taxpayers.
In the FKAA owned systems (Key Haven, Baypoint, Conch Key), newly developed properties are
charged connection fees directly in a manner similar to the method in place for water service.
When the initial plans for the wastewater systems were developed, the BOCC authorized the use of
revenues other than user fees to support development of the central systems because of the
overwhelming public purposes of cleaning nearshore waters and meeting the requirements of the Florida
Keys Area of Critical State Concern (ACSC) work plan as well as Ch. 99-395 LOF and the Monroe
County Sanitary Wastewater Master Plan. With the completion of the final project (Cudjoe Regional)
that objective is complete. The cost of providing a connection point for residential and commercial
properties developed after completion of the project should be borne by the newly developed property.
That development should also make a contribution to the amortization of the full system equal to that
borne by all properties within each system. It should be noted that the SDF itself is subsidized by
County tax revenues from the infrastructure sales surtax (the SDF represents approximately 25% of the
total cost to the County).
Alternatively, should the County continue to fund installation of connection points for newly developed
properties, a new ILA must be developed and revised from time to time to reflect changes in
construction costs. At this point in time, the average cost per EDU of each connection is over $15,000.
With the recent contract for installing low pressure lift stations the full cost to pay for the connections
will be almost double the amount in the original ILA. Essentially, this commits the County to ongoing
costs to support private development.
Newly developed properties should be responsible for the costs of connecting to the central systems.
These costs will vary depending on a number of factors including which system they are located within,
what type of connection they require, and when the connections are needed.
The connection point fee will be the amount in the FKAA fee schedule which is based on the cost
incurred by FKAA of providing the connection point. This amount is variable based of the type of
connection point (gravity or low pressure) and distance from the property to the nearest available sewer
line. The system development fee (SDF) has been set by the BOCC for each of its systems as $4,500
adjusted annually by the ratio of current CPI to the CPI on the date on which the particular levy was
initiated.
Staff recommends that BOCC adopt a policy by resolution that newly developed properties be assessed
the appropriate SDF by the County and that the FKAA be authorized to charge each newly developed
property the actual cost of providing the new connection in a similar manner to the way it charges for a
Attachment: 2019-02-10 Cnxn Chg SDF Recommendation (KW) (Resolution ending payment for new sewer connections)
new water connection. FKAA concurs with this proposed change (in fact, recommended it at a meeting
with County staff).
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Attachment: ILA 11-22-2016 Payments for connection points (Resolution ending payment for new sewer connections)
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Attachment: ILA 11-22-2016 Payments for connection points (Resolution ending payment for new sewer connections)
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Attachment: ILA 11-22-2016 Payments for connection points (Resolution ending payment for new sewer connections)
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Attachment: ILA 11-22-2016 Payments for connection points (Resolution ending payment for new sewer connections)
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Attachment: ILA 11-22-2016 Payments for connection points (Resolution ending payment for new sewer connections)
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Attachment: ILA 11-22-2016 Payments for connection points (Resolution ending payment for new sewer connections)
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Attachment: ILA 11-22-2016 Payments for connection points (Resolution ending payment for new sewer connections)
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Attachment: ILA 11-22-2016 Payments for connection points (Resolution ending payment for new sewer connections)
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Attachment: ILA 11-22-2016 Payments for connection points (Resolution ending payment for new sewer connections)
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