HomeMy WebLinkAbout09-e MSA Annual Update 2023 EXECUTIVE SUMMARY
AGENDA ITEM:
Middleburg Service Area Development 2023 Annual Updated Acreage Charge
BACKGROUND:
The Middleburg Service Area ("MSA") was developed to extend water and wastewater service to existing
and future commercial developments at the properties highlighted on the attached boundary map. As part of
the 1999 MSA policy,the recovery method of CCUA investment is allocated on an acreage basis; therefore,
each parcel that connects to the infrastructure will pay an allocated charge multiplied by the total number of
acres in each parcel. This allocated acreage charge is reviewed annually in June/July to reflect inflation and
carrying costs for the CCUA's investment. As a result, the acreage charge increases each year.
Schedule of Modification to Acreage Charge
Fiscal Year Water I Wastewater Total Acreage Charge
2022/2023 $5,637 $10,798 $16,435
2021/2022 $5,582 $10,684 $16,266
2020/2021 $5,528 $10,574 $16,102
• Per Acre/Pro-Rata Share
Current MSA distribution and collection infrastructure charges are $5,637 for water and $10,798 for
wastewater. With carrying charges of 2.19% added to CCUA's investment, proposed MSA distribution and
collection infrastructure charges for the 2023/2024 fiscal year are $5,692 for water and $10,911 for
wastewater.
RECOMMENDATION:
Staff respectfully recommends the Board of Supervisors tentatively approve the Middleburg Area Service
charges for CCUA's Fiscal Year 2023/2024 budget for$5,692 for water and$10,911 for wastewater.
ATTACHMENTS:
MSA Development Policy
MSA Boundary Map
//MB
07/10/23
C:\Users\nblaney\Desktop\Templates-Examples\Perezdocx
;I A AS Wit. A. In:WAIN M,,,INE..... . _„.. ,, 111,003,114! _.;__ -.--- I ,,,,,
r N ranyhol 4 41F OMMIKIP-'P'VAA% =rim a Int____ ,..=sw.--da. wimmFe To. ,..)/.-- s _ _
mr drkre %* 411•45111 illgrg:immr-=-2=k1K141111.
IIIIIIIIIIM
kil mi .A=�=1I1*IIP4
4fies, �. r-��1 �.
soa ■�� ........., ..... ois _ ` Middleburg 1
�� ��.. �\IIII up �✓ � > ,
High School l�I ,■ CQUNTYROAD�220
ial/tita1� ` Li.__
II11111111 �11■ t J�II1►���••�� 0/1111III■III■e■I I II...1 m1►iw/‘�a.1 Amp-
li �����`� Ill ■�igm :�� ,►�i IN 11 /�11r�����tiII��:1�_'. IDI�i�o •,�,p� �/111 E_� � ,
le���� b11 �� ��61180 1� ►%�/mr.:�f��111111�I���//Ii.Mom--� �1404, 71 11 ��'�/11r .s �►���
■11 ■����� ��id �� �I��� :� Paw•S
`C���7111/1h III �1� .fI� , °ii I'� \fiat ■11 ��=■=mo si is au r 41 Oa —My 04.47 ‘111t1 lir".•, A - hi; -' \
111� 11111► ��r��� Om— `` * It����Jl� m lll�► ,I '.;�I,�� ' ,iiiii , ‘
-x; 0.154111t. t 0144.011 me ill _ )
r
. 1111�, "* 0fe111`SIII-f " 1 lir iii Wil la P Ini PIVAN 1 Al El V. IN ..M ir
11 le 110V:01V if/ITO=
..'l_'�� Elementa__ �����WM Ea M � _''''c'uivr,- L rl URN _
D ._ - Agit" *
i -II i., 7- .b.,,t;$0--- \
ut. , , „,,„
4 4,
� iiir\ �, Mlmosa511141140�■1• �I►I� ��I� I�I�� .■-� 1 !, I, I II I i i l I iI II I I1�� �� ��� �♦.��. ��14 ��iI�1111 ►L I ; I1( 1I r �.�.�.��1 _
,, 11,1 11i I ■■■1 I I I•� I r i `�� Churchofst �1o1 ( rll�lliil�i%iimnulllllll�,Il A
prel&A
_ ■� �I � slier,( ...-A ��� I„�.�=1�um■■■link - -� 0 m■ex r. i Ems , . _r , l owe/II ■►..►.���.: .
1� � � � � ���,1111�_ I , Middlebur. 6. / �� ����� .,�., I
gear � ♦ I I kMira��:��ra ■111'. o-ga Par'96\■'��►�i A\\II ♦ i/ ►►►Ilall/•Ti�''....,'� l��4�
��.•.11I ♦I� 1111►I��� 11�,���un ♦w-■\I\:wok ° 0 �C-aA17tt4 A....tiamw
�►��7
--a_ I♦ I/I/III/I ra III ♦ V .I..■ ---- Ad■111 �.� . p lop ►.,�L.■ I ��,i1i1�1en,.,.I1�/IIII�� --sI�%04■I■is::R IIE= �\ w �lirvimia-4Ala ■Ii�II 1111/ tiz/■E MI■ E k ♦ iwkip%I- =■r in I111111_11111■ ■11I1 _ - ����� .II .. . `■11111i411 -1■lli,�e� j��1►����■i■ ;�=llAJMNIMl� iim �:_ =:'=:;';�:..�„•1= � �
..ii
l : 111 1 2: .
NM umnip*i. _ -111111111 I����I���j�I/IN 11►,�4� 1 ! ■ter i 1111. 1,�•..;=lt ;;:;;:��::::; ��1 11.M.
m- . ....* 111:1 _ apt. vfigor,•,,,Mmilillfili,,,,09t __B lbww .1 mi _.2,==,... mormwor al
i o •�►
• �� ��%11 A'al 1 kip's-°.1 101.......... m,..... kr
uIIII1 itssi issi To ,,,��ft Forman Circlimp�_I�,.�`. 46v�4 S�no ■� ` �B ■. n
No ��1Pp.y..
uo
■ 7N *rip-ori ------------------------
_ ifliiViIiI!lli4LLLLLI��..���►� \r — -^\4,ILI A.►/oLuro I� �'••..,.� ��� I� �_
:E111 ma pI -i11111111111■I►=� o�.11■mik.I *um am/•11n1I/r _ Eft ♦�uIll■II/g a �i _� �� iv'e
•1111�g: me�r v: Lm I�m_ E� �a • �1 ItV gi
in■11111d ■ ' ■i mIII■e■ =La U ■ �'� i ��
1�� 40.414;?♦nig Ell �s
.6.44:
MI— 4'4* gliumniiiitaiimmriti 1 14
■■o 1 ( I I I I ( 1•.■■■ I I - raw ` 1 �,��;� -�:� =�/
L Lisi
q 4t
�� willi
,�'� ‘4/
**(411* % F T A I I II
•
• MIDDLEBURG SERVICE AREA DEVELOPMENT POLICY
This policy is intended to be a supplement to the Clay County Utility Authority's Service
Availability Policy, for the purpose of establishing a fair and equitable way to assess main extension
charges for the trunk water and wastewater mains and pumping stations necessary to provide service to
the Middleburg Service Area(MSA), as defined in Clay County's Future Land Use Policies 3.11 and 1.5
(see Exhibit A). This policy is necessary due to the significant off-site extension from The Ravines
Water and Wastewater Treatment Plants to the MSA and the wastewater pumping stations required to
service this area. It is also necessary in order to put the Clay County Utility Authority in the best
position to provide extensions as needed. Budget restraints and financial feasibility will remain items
that the Clay County Utility Authority will consider on each phase of this development.
1. Intent: It is the intent of the Clay County Utility Authority to extend trunk water and
wastewater mains to all developable areas within the MSA, subject to budget restraints
-an - iancial feasibility and that a cost recovery program be established to equitably —. �
spread the cost of the Distribution and Collection System Infrastructure to all properties
receiving the benefit of the service.
2. Applicability: This policy shall apply to all of the properties within the MSA.
3. Cost Recovery System: In order to equitably allocate the costs, it was essential to
establish a preliminary trunk main alignment and system design and based on that design,
II/ to establish a cost estimate to serve the entire MSA. It is understood that future
development obstacles, rights-of-way acquisition problems, site acquisition, and
development patterns may alter the final design, location, and routing of these
distribution and collection systems, however, we believe that the cost estimate
established herein is a fair representation of the infrastructure cost for the MSA. The
preliminary design is attached as Exhibit B. The infrastructure cost estimate for the MSA
is established in the recap attached as Exhibit C (detail cost estimate supporting Exhibit C
are available in Clay County Utility Authority's files). The MSA acreage is estimated at
430 acres. The cost recovery acres are established at 90% of the total acreage in the
amount of 387 acres (430 total acres x 90%). Based on the total cost estimate in Exhibit
C of $5,032,500.00 and the recoverable acres of 387, the initial distribution and
collection system infrastructure charge per acre will be established at $13,004.00 per
acre. Modification of the cost per acre will occur annually to reflect inflation and
carrying cost (or lost return) for Clay County Utility Authority's investment in the
infrastructure and actual vs. estimated cost (when appropriate comparison can be made
for the differential between the actual cost vs. the estimated cost) used herein as follows:
a. Inflation: A consumer price index will be selected that most closely represents
cost increases and inflation influences on capital installations such as water and
wastewater distribution and collection system extensions. Once established, the
index will be used annually to establish the inflation percentage applicable to the
remaining undeveloped portions of the infrastructure. The inflation percentage
will be applied to the remaining undeveloped portion of the system and the annual
• inflation factor will be added to the remaining cost to be recovered.
1
•
• MIDDLEBURG SERVICE AREA DEVELOPMENT POLICY, CONTINUED
b. Carrying Cost: The Clay County Utility Authority's average out of pocket
investment in the infrastructure will be established annually and the carrying cost
will be calculated based on the higher of the Clay County Utility Authority's
Florida Department of Environmental Protection State Revolving Fund debt
interest rate for the year or the State Board of Administration's average return
paid for the immediate prior year on Clay County Utility Authority's investments.
This carrying cost will be established and will be added to the balance to be
recovered.
c. Estimated Cost vs. Actual Cost: From time to time, when actual development
phases most nearly coincide with the phasing used in the initial cost estimates, the
_- - staff shall analyze the actual infrastructure cost vs.....tP estimated infrastructure
cost for development to date and may include this cost adjustment in the annual
modification to the acreage allocation.
d. Examples: A hypothetical example of the annual modification to this cost
allocation is presented in Exhibit D, attached hereto.
e. Timing of Annual Adjustment: The inflation, carrying cost, and actual vs.
estimated cost adjustments, will be established on July 1 of each year and will be
• presented at the Clay County Utility Authority's Annual Budget and Rate
Increase Public Hearings for consideration and action by the Clay County Utility
Authority's Board of Supervisors.
4. Rights-of-Way — The Clay County Utility Authority has made it a policy that where
utility extensions occur adjacent to major highways, it will use its best effort to secure
easements to accommodate such extensions. This is considered prudent due to the
likelihood that future road projects will displace or require very expensive relocation of
utilities placed within the rights-of-ways. In keeping with this standard, the Clay County
Utility Authority will require developments covered by this policy, which fronts on
County Road 218 and State Road 21 to provide easements to the Clay County Utility
Authority to accommodate its utility extensions. In the event Clay County Utility
Authority has to compensate a particular property owner (who may not need service at
that time) in order to acquire an easement, then the amount of such compensation plus
carrying cost on the investment will be added to the service availability charges assessed
when that property develops in the future.
5. Other Charges—This policy is designed to create an equitable allocation of the cost of the
extension of the Clay County Utility Authority's water and wastewater distribution and
collection system through the MSA and is not intended to replace any of the other
charges covered by the Clay County Utility Authority's current Service Availability
Policy. Therefore, all other service availability charges, including connection charges,
•
2
• MIDDLEBURG SERVICE AREA DEVELOPMENT POLICY, CONTINUED
meter installation charges, inspection fees, plan review fees, fire flow connection fees,
etc. shall remain applicable to projects within the MSA.
6. Special Provisions:
a. Existing Residential Houses — Where property owners live in existing residences
within the MSA, the Clay County Utility Authority will not require their
connection to the Clay County Utility Authority's system when service becomes
available. However, optional connection is available at that time, and as an
incentive for the owner to disconnect and discontinue its use of any existing
package plants, drain fields, septic tanks and the like, if the property owner elects
to connect to the Clay County Utility Authority's water and wastewater service
when available to the property, the service availability charges, including acreage
allocation, will be determined, assessed and financed by the Clay County Utility
Authority over a ten (10) year period, plus financing costs, as provided in
Paragraph 6.d., below, adjusted annually on each July 1st. A periodic payment
(monthly or quarterly) equivalent to the payment required to retire the
indebtedness will be added to each utility bill for the following ten (10) year
period. Should the existing residence not connect to the Clay County Utility
Authority's water and wastewater systems, then any new improvements
• constructed on the subject parcel for commercial use then shall be subject to the
provisions of Paragraph 6.b., below, and any converted residential structure put to
commercial use then shall be subject to the applicable provisions of Paragraph
6.c., below.
b. Existing Commercial Developments—The Clay County Utility Authority will not
require existing commercial developments to connect to the Clay County Utility
Authority's system when service becomes available. However, optional
connection is available at that time, and as an incentive for the owner to
disconnect and discontinue its use of any existing package plants, drain fields,
• septic tanks and the like, if the property owner elects to connect to the Clay
County Utility Authority's water and wastewater service when available to the
property, the service availability charges, including acreage allocation, will be
determined, assessed and financed by the Clay County Utility Authority over a
ten (10) year period of time, plus financing costs, as provided in Paragraph 6.d.,
below, adjusted annually on each July 1st. A periodic payment (monthly or
quarterly) equivalent to the payment required to retire the indebtedness will be
added to each utility bill for the following ten(10) year period.
c. Undeveloped Property— Service availability charges will not be assessed until the
property develops. As no existing package plants, drain fields, septic tanks or the
like would be in service at the time of connection to the Clay County Utility
111 Authority's system, the Clay County Utility Authority will not offer financing of
3
• MIDDLEB URG SERVICE AREA DEVELOPMENT POLICY, CONTINUED
service availability charges, including acreage allocation, as an incentive for
connection to the Clay County Utility Authority's system. The acreage, subject to
this Policy, shall include all acreage which is a part of the development and which
is used by the development, including retention ponds, paved driveways, parking
areas, building areas, landscaped areas, storage areas, etc. Any property left in its
natural state or which is not used as part of the development will not be assessed
the acreage charge until such time as it becomes part of a future expansion or a
separate future development. Areas which are located in the flood plain or which
are classified as wetlands will not be assessed an acreage charge. Any wetland
area which mitigated and is converted to developable acreage would be included
in the acreage assessment under this Policy.
d. -Financing Costs—The financing cost (Interest Rate) is to be established based on
the following priority as applicable to the specific situation from time to time.
The rate shall be:
1. 1-1/2% above the True Interest Cost (TIC) of the transaction which financed
the project, or
2. 1-1/2% above the TIC of the most recent capital financing transaction of the
Clay County Utility Authority, or
1111 3. 1-1/2% above the variable rate of the Bond Market Association Municipal
Swap Index (formerly PSA) at the web site
www.bondmarkets.com/research/psaswap.shtml
7. Pump Station Sites - Clay County Utility Authority will negotiate for and acquire all
necessary pump station sites to fulfill the Master Plan since these facilities will benefit all
users.
8. Limitations—Service will be extended within close proximity of all portions of the MSA, but
will not necessarily be extended to each lot. The developer shall bear the cost of all on-site
installations and off-site extensions to the nearest connection point. For certain situations
where future developments are likely, and there is sufficient demand for service, the Clay
County Utility Authority may elect to invest in infrastructure extensions on a cost sharing
basis. Gravity sewer service will be available to most areas but will not be guaranteed.
There are several isolated areas that would not justify the installation of a major pump station
at this time, therefore, should they develop, they will require the installation of a small
private pump station to pump the wastewater to the nearest connection point.
• C:My Documents MICHELLE\Cons0uctiooUfiddlebwg Master PlanUfiddlebmg Service Area Development Policy 052S99.doc
4