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HomeMy WebLinkAboutLB 1. 2022.2023-08 LAMPA Trunk Main Capital Cost Recovery Policy RESOLUTION NO. 2022/2023-08 A RESOLUTION OF THE CLAY COUNTY UTILITY AUTHORITY FORMALLY ADOPTING THE AUTHORITY'S LAKE ASBURY MASTER PLAN AREA TRUNK MAIN CAPITAL COST RECOVERY POLICY; SUPPLEMENTING AUTHORITY RESOLUTION 2022/2023-01, RELATING TO THE AUTHORITY'S AUTHORIZED RATES,FEES AND CHARGES AND SERVICE AVAILABILITY POLICY BY THE FORMAL ADOPTION OF THE AUTHORITY'S LAMPA SERVICE AREA TRUNK MAIN CAPITAL COST RECOVERY POLICY AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Board of Supervisors of the Clay County (Florida) Utility co Authority (Authority) after having complied with the public notice and public hearing requirements imposed upon it by applicable law, approved by its formal a action the adoption of amended and restated rates, fees and charges for fiscal year E 2022/2023 (Rate Resolution) at a public meeting of the Board of Supervisors on October 4, 2022; and WHEREAS, the Authority has adopted a Service Availability Policy (SAP) which has been amended from time to time throughout its existence. The current SAP, as of the date hereof, was adopted by the Authority on October 4, 2022, effective as of October 1, 2022, and is in full force and effect and made a part hereof by specific reference; and WHEREAS, the Lake Asbury Master Plan Area (LAMPA) is projected to contain approximately 30,000 equivalent residential connections (ERCs) at build- out and will require transmission systems for potable water, wastewater, and reclaimed water for the primary benefit of the LAMPA as the benefitting area; and WHEREAS, the Authority desires to create a specific supplemental service availability policy to provide service to the LAMPA and to adopt a specific master trunk main development program to be implemented immediately in order to coincide with the north/south extension of the First Coast Expressway and construction of associated arterial and collector roadways and so as to expand potable water and wastewater service, and when available, reclaimed water, to the existing and future LAMPA community; and WHEREAS, it is not feasible to allow development within the LAMPA without the prior construction in an orderly, cost-effective, and environmentally conscious fashion of new and/or improved potable water,wastewater, and reclaimed transmission (trunk main) systems and ancillary facilities henceforth called "infrastructure"; and WHEREAS,the Authority recognizes the potential for more than 12,000 new ERCs that will require access to potable water, wastewater, and reclaimed water service within the next 10 years, making such users the immediate beneficiaries of the infrastructure; and WHEREAS, it is in the public interest that the Authority adopts this Policy to construct and extend potable water,wastewater, and,wherein available, reclaimed water transmission (trunk main) infrastructure to service LAMPA and to recover the cost of the extension of such infrastructure on a pro-rata and cost-effective basis by a fair appropriation of the cost thereof among the immediate benefitting users thereof; and WHEREAS, all funds collected via this Policy will be expended within LAMPA to defray the cost of the extensions of said infrastructure; and WHEREAS, the Authority conducted a public workshop on February 16, 2023, in order to receive public comment on its proposed LAMPA trunk main capital cost recovery policy; and WHEREAS, to the extent that such action may constitute the creation or increase of the rates, fees, and charges imposed by the Authority, the Authority has duly noticed its formal adoption of the proposed LAMPA trunk main capital cost recovery policy for consideration at a Public Hearing conducted on September 12, 2023, thereby supplementing the Rate Resolution; and WHEREAS, as a result of its receipt of information from the public, Board discussion and direction to Authority staff at its duly noticed September 12, 2023 public hearing, the Board of Supervisors, upon completion of the hearing, and by its approval of the attached revised LAMPA trunk main capital cost recovery policy, has by its formal action this date determined that it is in the public interest of the Authority, its ratepayers, and the present and future citizens of Clay County to adopt the Authority's LAMPA trunk main capital cost recovery policy in the form attached hereto. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE CLAY COUNTY UTILITY AUTHORITY, AS FOLLOWS: Section 1. The foregoing recitations are true, correct, and incorporated herein by specific reference. Section 2. The Lake Asbury Master Plan Area Trunk Main Capital Cost Recovery Policy, in the form attached hereto, is hereby adopted. Section 3. The Rate Resolution is hereby supplemented by the adoption of this Resolution No. 2022/2023-08, and in the event of any conflict between the provisions of the Rate Resolution and the provisions of this Resolution regarding the administration of the LAMPA Trunk Main Capital Cost Recovery Policy, and any facilities extensions, connections and/or projects financed thereunder,the provisions of this Resolution shall control. Section 4. This Resolution shall take effect on the ninety-first (91 St) day following the last of(i) its adoption by the Board of Supervisors or (ii)publication of notice of the effective date of this Resolution on the Authority's website. PASSED, APPROVED, AND ADOPTED, this 19th day of September, 2023. CLAY COUNTY UTILITY AUTHORITY (OFFICIAL SEAL) , Chairman Board of Supervisors ATTEST: Janice Loudermilk, Secretary Board of Supervisors LAKE ASBURY MASTER PLAN AREA TRUNK MAIN CAPITAL COST RECOVERY POLICY THIS LAKE ASBURY MASTER PLAN AREA TRUNK MAIN CAPITAL COST RECOVERY POLICY (Policy) is adopted in connection with the extension of the First Coast Expressway (FCE) on a generally north/south axis within the Lake Asbury Master Plan Area (LAMPA), as well as associated arterial and collector roadways (a planning purpose map of which is attached hereto as Exhibit A), and which is wholly within the service area of Clay County Utility Authority (Authority). The LAMPA acreage is approximately 30,000 acres. It is recognized that the LAMPA is poised for the development of approximately 30,000 equivalent residential connections (ERCs)(the density factor) over a 25-year period, with an estimated 12,000 new ERCs projected within the next 10 years. In recognizing the Authority's obligation to provide potable water, wastewater, and reclaimed water utility service throughout its service area, and in recognition that the largest cost savings available to the Authority and its ratepayers are to build major trunk lines in conjunction with the construction of said FCE and associated arterial and collector roadways, where appropriate, and/or upgrade or otherwise improve existing Authority system infrastructure to adequately meet increased demands resulting from the LAMPA development, the Authority hereby finds that the adoption of an appropriate trunk main capital cost recovery Policy is in the public interest and a proper exercise of the duties assigned to the Authority by the Florida Legislature by its adoption of Chapter 94-491, Laws of Florida, Special Acts of 1994. This Policy is intended to be a supplement to the Authority's existing Service Availability Policy (SAP), as may be amended from time to time, for the purpose of establishing a fair and equitable method to recover costs from immediate benefitting users associated with the extension of and/or improvements to the trunk potable water, wastewater, and reclaimed water mains and ancillary facilities necessary to provide service to the LAMPA as defined in Clay County's Future Land Use Policy. This policy is necessary to position the Authority to provide service to the LAMPA via new pipeline extensions and/or improvements to existing infrastructure on an as- needed basis. It is also necessary to place the Utility Authority in a position to deliver its services on a cost-effective basis as required at the time hereof and thereafter. Financial feasibility will require that the Authority address each future phase of the LAMPA service area development on an as-needed basis. 1. Intent: It is the intent of the Authority to extend backbone master trunk potable water, wastewater, and reclaimed water mains in conjunction with the extension of the FCE, and associated arterial and collector roadways within the LAMPA (the Project), and/or upgrade of improving existing Authority system infrastructure, subject to budget restraints and financial feasibility and that a cost recovery program be established to equitably apportion the cost of the trunk main and associated transmission distribution, and collection system infrastructure identified preliminarily in the Dewberry Lake Asbury Master Plan Area Trunk Main Engineering Report — Revised Submittal dated August 8, 2023, attached as Exhibit B, to all properties receiving the benefit of that service. 2. Purpose: It is the purpose of this Policy to satisfy Florida's dual rationale nexus test. The Authority hereby finds that it has properly documented: (i) the anticipated potential growth within the LAMPA; (ii) that participation in the LAMPA trunk main capital cost recovery policy is necessary to serve that growth; (iii) that the Authority, its staff, and consultants, have performed a diligent analysis of the pro-rata cost of the participation in the LAMPA trunk main capital cost recovery project; (iv) that the intended charges to new users within the LAMPA are a fair appropriation of the cost of participating in the Project; (v) that the funds to be collected will primarily benefit new development; and (vi) all funds collected pursuant to this Policy will be disbursed to recover the capital costs expended to serve the growth within the LAMPA. 3. Applicability: This Policy shall apply to those properties found to have immediate direct benefit from the installation of one or more of the master trunk mains as defined in Section 1.1 of Exhibit B and displayed generally in Exhibits B- 1, B-2, and B-3. 4. Cost Recovery System: In order to equitably allocate the costs, it is essential to establish a preliminary trunk main alignment and system design and based on that design, to establish a cost estimate to serve the entire LAMPA. It is also understood that future development obstacles, rights of way or easement acquisition issues, site acquisition, and development patterns may alter the final design, location, and routing of trunk main and associated distribution and collection systems; however, the Authority finds that based upon engineering studies commissioned heretofore, that the cost estimates established herein are a fair representation of the infrastructure cost for the LAMPA. The construction bid price for the CR 218 Extension utilities, plus estimates for trunk mains identified along the proposed Cathedral Oak Parkway and corridors to the north of the interchange with the FCE, are presented in the Dewberry LAMPA Trunk Main Engineering Report — Revised Submittal dated August 8, 2023 (Exhibit B) and total $30.88 million. The cost recovery mechanism shall be calculated by utility, with a total apportioned cost of$28,278,000 for all three utilities. The potable water estimated apportioned cost of$7,516,000 over 9,364 ERCs yields an estimated trunk main and associated cost of $803 per ERC in present money value. The reclaimed water estimated apportioned cost of$9,492,000 over 9,364 ERCs yields an estimated trunk main and associated costs of $1,014 per ERC in present money value. The wastewater cost recovery mechanism for the estimated apportioned cost of $11,270,000 over 12,657 ERCs yields an estimated trunk main and associated costs of$890 per ERC in present money value. The costs not apportioned to ERCs within LAMPA under this Policy will be allocated according to CCUA's existing Service Availability Policy at the time of entering into future developer agreements. 5. Payment: Payment of the charges required hereunder shall be due and made at the time that the Authority signs off on the permitting of the potable water or reclaimed water distribution or wastewater collection system applicable to any parcel within the LAMPA for such uses as residential neighborhoods, multifamily housing, and any and all commercial, industrial, hotel, hospital or other such uses. 6. Annual Adjustments: The cost per ERC shall be adjusted annually so as to recover the Authority's carrying costs on the Authority's investment in the subject infrastructure, and to adjust from estimated costs to actual costs, taking into consideration the following: (a) Financing/Carrying Costs: The financing/carrying costs are 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 (3) 1-1/2% above the variable rate of the Bond Market Association Municipal Swap Index (formerly PSA) at the website www.bondmarkets.com/researchipsaswap.shtml (b) Density: The Authority shall annually adjust the density factor in accordance with then-approved development entitlements for the properties within the LAMPA subject to being benefitted hereby. (c) Timing of Annual Adjustments: The inflation, carrying cost, actual vs. estimated cost, and density adjustments will be established on July 1st of each year and will be presented at the Authority's Annual Budget and Rate Increase Public Hearings. (d) The Authority reserves its lawful right to amend its rates and charges hereunder so as to impose fees that are just, equitable, compensatory, and not unduly discriminatory. 7. Rights of Way: The Authority has made it a standard of practice that where utility extensions occur adjacent to existing or future major roadways, it will use its best commercially feasible efforts to secure easements to accommodate such extensions. It is prudent to do so considering the likelihood that new roadway projects will be displaced or require expensive relocation of utilities placed within the rights of way. In keeping with this standard, the Authority will require developments subject to this Policy, which front on such roadways to provide easements to the Authority to accommodate its utility extensions. The Authority, at its sole discretion, may elect to substitute fulfillment of this requirement from time to time for specialized parkway segments that include an extensive right of way with full width required for all potential lane expansions and that leave sufficient dedicated rights of way space for all contemporaneous or future utility needs outside the furthest potential lanes and in a manner contemplated for both efficient transportation and utility construction and maintenance. 8. Other charges: This Policy is designed to create an equitable allocation of the cost of the extension of the Authority's backbone master trunk potable water, wastewater, reclaimed water distribution, and collection and storage systems through the LAMPA and is not intended to replace any of the other charges covered by the Authority's current SAP. Therefore, all other service availability charges, including connection charges, meter installations charges, inspection fees, plan review fees, fire flow connection fees, etc., are applicable to projects within the LAMPA. 9. Limitations: Service will be extended within close proximity of all portions of the LAMPA but will not necessarily extend fully to each parcel. 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 Authority may elect to invest in infrastructure extensions and/or improvements on a cost-sharing basis, as above. 10. Existing Residential Houses: Residences within the LAMPA with Certificates of Occupancy issued prior to official notice of the availability of service will not be required to connect to the Authority's system when service becomes available. However, an optional connection will be available at any time and as an incentive for the owner to disconnect and discontinue the use of any existing package plants, drain fields, septic tanks, and the like if the property owner elects to connect to the Authority's potable water, wastewater and/or reclaimed water service when available to the property, the service availability charges will be determined, assessed and financed by the Authority over a 10-year period. 11. Pump station sites: All necessary pump station sites required to implement this Policy shall be dedicated to the Authority at the sole cost and expense of the benefitted landowner(s) as a condition to receiving utility services from the Authority of the adjoining property. To the extent that such pump station sites benefit neighboring properties, the Authority shall charge and collect from such neighborhood property owners their pro rata share of the fair value of such sites on a refundable advance basis to the donor consistent with the Authority's SAP.