Item M09
Apr 05 00 12:59p
Commissioner Williams
(305) 289-6306
p.2
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date:_ 4/19/00
Division:_BOCC
Bulk Item: Yes
No_x_
Department: _Commissioner Williams
AGENDA ITEM WORDING:
Discussion of approaches to dealing with hook up fees for those who have recently upgraded their onsite
systems.
ITEM BACKGROUND:
Over the course of the last year there has been much discussion as to whether any action should be taken
regarding regular hookup fees for those few individuals who acmally complied in upgrading their onsite
wastewater systems. Staffhas considered several alternatives and we should discuss them.
PREVIOUS RELEVANT BOCC ACTION:
ST AFF RECOMMENDATION:
TOTAL COST:
BUDGETED: Yes:_ No:
COST TO COUNTY:
REVENUE PRODUCING: Yes:_ No:_ AMOUNT PER MONTH
YEAR
APPROVED BY: County Attorney _ OMB/Purchasing_ Risk Management
DIVISION DIRECTOR APPROVAI. ~ a ,~
I Nora A. Williams
DOCUMENTATION: lncluded:_ To Follow:_ Not Required: "
DISPOSITION:
Agenda Item II:
I"~
Apr 11 00 04:43p
Commissioner Williams
(305) 289-6306
p.2
Memorandum
DATE:
r 2 April, 2000
TO:
George Garren. Marine Resources
FROM:
Nora Willialm, BOCC
SUBJECT:
Consideration of On-site Wastew8ter System Pay-down
Introduction
Over the course of the last few years, a number of residents have put in new onsite (A TV)
systems in areas that are likely to soon be sewered. Some of these systems were the result of
compliance with the program established in the first two rounds of "cesspool replacement
letters," while others were simply the result of new construction or home improvements which
required an upgrade. The county needs to determine how those residents' hook-ups will be
handled as they come online to the new centralized systems.
Background
One approach that has been discussed in consideration of the wastewater master
plan process is to provide a pay-down program for those who are subsequently
required to hook-up to a sewer. The pay-down should not, of course, exceed the
hook-up fee charged for the central sewage system hook-up, and certainly should
not exceed the amount expended by that homeowner should s/he have been grant
eligible. ,
In addition, the effective life, considering needed replacement of parts and
components of OWNRS systems is about ten years. Thus, a pay-down program
should not exceed ten years and might be prorated to assume plant obsolescence
over that time. For instance the system might be devalued at 10% of the proposed
amount to be credited toward the pay-down per year, up to ten years after
construction, and before the sewer becomes available.
DOH believes that there may be up to 100 (85) systems that have been permitted in
the Key Largo area in the past few years. Some of those systems go beyond the
buy-down
04/06/00 10'111 PM
Apr 11 00 04:43p
Commissioner Williams
(305) 289-6306
p.3
treatment standards of the original A TV's installed in the County and actually meet
the currently required standards for onsite treatment (those systems are known as
OWNRS). Thus there may need to be a different base value for each type of
system bought back.
Other Issues
A pay-down program would require a rational nexus or public benefit test for
funding, and would probably fail. The over all userbase should not be required to
pay for the pay-down. Thus, the County would more than likely be required to
establish external funds for the purpose of pay-down, for instance the infrastructure
tax. The pay-down likely could not be built into the FKAA rate structure.
Some Considerations
If we establish a pay-down program:
-what is the amount to be paid down (it should not, of course, exceed the amount
spent by the homeowner)?
-should there be a different level of pay-down for a system that meets the currently
required standards?
-should the pay-down be prorated over ten years?
-what funds would be used to pay-down the hook-up fee?
-how much would a pay-down cost us? If we look at Key Largo for example, it
would cost something less than 85 x the cost of hook-up, depending on how we
worked proration and cost schedules. The following pages list the systems noted by
the Department of Heal th in Key Largo and the associated dates of permitting for
most of them.
~ote: This is not something that deals only with Key Largo. This is a situation that
will continue to arise in ANY areas where we install neighborhood or larger
centralized systems. We may not wish to take any action on this today, but we
should be thinking about it. Also, note that it will be the County's responsibility to
find funding for any such grant program undertaken, not the FKAA ' s.
2
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Commissioner Williams
(305) 289-6306
from Cha~ie5 Braoh.:. To: Nora W~I;lams
Da!e: 4il~/OO Time: :2:31:46 PM
Time Sensitive }'ax
Please Read before the BOCC Regular Meeting Wed.
4/19/00
M----Commissioners Item Continued
Page 5 of the Agenda
To:
All County Commissioners
3. COMMISSIONER WILLIAMS - Discussion of approaches to dealing with hook-
up fees for those who have recently upgraded their onsite systems I
This item most certainly should be open for discussion in the Key Largo BOCC
meetings.
If you begin discussions on this Key Largo issue in Key West you should do so
only as an introduction for the thought process to begin. Any detailed discussion
on this should be done in the Key Largo meetings where all the stakeholders
have the opportunity for input and dialog. Please continue this item for the town
hall meeting May 16 and either the BOCC meeting of the 17th or 18th of May.
I hope this item being on the Key West agenda is not intended to circumvent Key
Largo public input and some how impregnate any decisions you make in the
contract negotiations or policy decisions. This item does not seem to be a
contract issue, it appears to be the county policy in regard to the users payment
responsibilities. Therefore there is no expeditious need to discuss and settle this
issue at the Key West meeting.
Some concern. ,..rrling this Item
1. Are we opening a wave of exceptions.
2. In granting concessions to these people will we be transferring the financial
burden to the overall users of the system. Will they be subsidizing those who
have upgraded their onsite system recently. What's the Falmess Issue.
3. The timeline, how recently was a system updated, was it forced or voluntary
(desired improvement or addition) was it a residential upgrade or a DEP
package system upgrade.
4. If the upgrades were forced who will bear the cost of the subsidy? The
county (sewer user) or the state. Will these subsidies be an outright grant
from the state or will they increase the edu cost. If grant money. will this
shrink the grant money pool, subsequently reducing any grants for the overall
system. Which of course would increased the EDU cost for each user.
Page ) of 2
p. 1
P;;ge 1 01:,
Apr 18 00 12:50p
Commissioner Williams
(3051 289-6306
rrorr:: Cher!t!s Bro<'J,k~ To~ NDra \fI/ll;rams
Dale 4c'18/00 T:me !?.<!45 P":
Time Sensitive Fax
Please Read before the BOCC Regular Meeting Wed.
4/19/00
5. Will this subsidy be granted to just residential users or will it include the
business community. It is there any intention here to exclude the business
community from the same hookup schedule as a residential community. Will
there be any inequities between the two.
6. One business recently upgraded it's package plant to new standards at the
cost of $100,000. How will you subsidize this expense.
Sincerely
Charles Brooks
Concerned Sewer Recipients of Key Largo
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