HomeMy WebLinkAbout09.e EDB MSA 25.26 Annual Update EXECUTIVE SUMMARY
AGENDA ITEM:
Middleburg Service Area Development 2025 Annual Updated Acreage Charge
BACKGROUND:
The Middleburg Service Area("MSA")was developed to provide water and wastewater services to existing
and future commercial developments within the area outlined in the attached boundary map. In accordance
with the 1999 Middleburg Service Area Policy, Clay County Utility Authority (CCUA) recovers
infrastructure investment costs through an acreage-based allocation.
This allocated charge is reviewed annually in June/July to reflect inflation and the carrying costs associated
with CCUA's capital investments. Consequently,the acreage charge increases incrementally each year. The
table below outlines the historical modifications to the acreage charges over the past four years.
Schedule of Modification to Acreage Charge*
Fiscal Year Water Wastewater Total Acreage Difference
Charge +/-
2025/2026 $11,134 $16,934 +$172
2024/2025 $5,744 $11,018 $16,762 +$159
2023/2024 $5,692 $10,911 $16,603 +$168
2022/2023 $5,637 $10,798 $16,435 +$169
*Per Acre/Pro-Rata Share
The charges are in accordance with CCUA policy and are submitted for the Board's tentative approval.Upon
tentative approval, these updated charges will be included in the FY 2025-2026 rate book in preparation for
the public rate hearing and the Board's final approval.
RECOMMENDATION:
Staff respectfully recommend that the Board of Supervisors tentatively approve the Middleburg Area Service
charges for CCUA's Fiscal Year 2025/2026 budget: $5,800 for water and $11,134 for wastewater.
ATTACHMENTS:
MSA Development Policy
MSA Boundary Map
MB/06/17/2025
• RESOLUTION NO. 98/99-10
A RESOLUTION OF THE CLAY COUNTY UTILITY
AUTHORITY (THE "AUTHORITY") FORMALLY
ADOPTING THE AUTHORITY'S MIDDLEBURG SERVICE
AREA DEVELOPMENT POLICY; SUPPLEMENTING
AUTHORITY RESOLUTION NO. 98/99-01, RELATING TO
THE AUTHORITY'S AUTHORIZED RATES, FEES AND
CHARGES AND SERVICE AVAILABILITY POLICY,BY
THE FORMAL ADOPTION OF THE AUTHORITY'S
MIDDLEBURG SERVICE AREA POLICY; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Board of Supervisors of the Authority, after having complied with the
public notice and public hearing requirements imposed upon it by applicable law, approved by its
informal action the adoption of amended and restated rates, fees and charges for fiscal year
1998/1999, at a public meeting of the Board of Supervisors on September 15, 1998; and
WHEREAS, by its adoption of Resolution No. 98/99-01 (hereinafter, the"Rate
• Resolution") on October 6, 1998, the Board of Supervisors for the Authority formalized its prior
informal action approving the 1998/1999 rates, fees and charges for the Authority, and adopted
the Authority's Service Availability Policy as a part thereof; and
WHEREAS, by its adoption of Resolution No. 98/99-07 on January 5, 1999, the Board of
Supervisors for the Authority adopted a technical amendment to the Rate Resolution, by
correcting the fees and charges imposed and collected by the Authority for the installation of
potable water meters and reuse water meters; and
WHEREAS, by its adoption of Resolution No. 98/99-08 on April 6, 1999, the Board of
Supervisors for the Authority adopted a further amendment to Rate Resolution, by deleting the
category and fixed unit factor value for Hotel/Motel establishments(not including food service,
banquet, meeting rooms and guest laundry facilities)from Section 12(1) of the Rate Resolution;
and
WHEREAS, by its informal action on December 15, 1998, the Board of Supervisors for
the Authority initially approved the creation of an In-Fill Projects Fund, and adopted a policy
statement with respect thereto; and
• Page 1 of 4 CCUA RESOLUTION NO. 98/99-10
111
WHEREAS, by its further informal actions on March 16, 1999 and April 6, 1999, the
Board of Supervisors for the Authority approved the amendment of the In-Fill Projects Fund
Policy to provide for charging and collecting of a calculated percentage of facilities extension
costs and carrying costs to customers connecting to projects financed by the In-Fill Projects Fund;
and
WHEREAS, after complying with applicable public notice and public hearing
requirements, by its adoption of Resolution No. 98/99-09 on May 4, 1999, the Board of
Supervisors formally adopted and amended its In-Fill Projects Fund Policy as a supplement to
Resolution No. 98/99-01, the Authority's Rate Resolution and Service Availability Policy
(hereinafter, the"Rate Resolution"); and
WHEREAS, by its adoption of Resolution No. 98/99-06 on January 5, 1999;;-iiteaBoard of
Supervisors of the Authority approved the acceptance of the transfer of the Ravines PUD water
and wastewater systems and facilities; and
WHEREAS, the acceptance of such systems and facilities, and the anticipated expansion
thereof by the Authority, enables the Authority to extend and offer central water and wastewater
service to the commercial and certain residential portions of the unincorporated community
• known as Middleburg, Florida, which has already, and continues, to develop as a population and
business center in Clay County; and
WHEREAS, the commercial and certain residential portions of the Middleburg community
with frontage on State Road 21 (i.e., Blanding Boulevard) and County Road 218, have developed
as an urban service area to date through the use of wells, privately-owned"package"water
treatment plants, privately-owned"package"wastewater treatment plants, drain fields, septic
tanks and the like, the proliferation of which threaten the overall quality of water and other natural
resources of Clay County, and therefore threaten the public health, safety and welfare of the
citizens of Clay County, Florida; and
WHEREAS, the continued growth of the Middleburg urban service area without the
development of infrastructure for provision of central water and wastewater service and facilities,
will make the future retrofit of such necessary infrastructure and facilities after the fact cost
prohibitive and infeasible; and
98/99-10
• Page 2 of 4 CCUA RESOLUTION NO.
•
• WHEREAS, a public benefit will be served by the Authority taking immediate action to
extend its water, wastewater and, when available, reuse water facilities and services to the
Middleburg urban service area, and to offer to amortize the extension and certain related service
availability connection costs to users who voluntarily connect to the Authority's system and
thereby disconnect from and discontinue use of private package plants, septic tanks and drain
fields; and
h Authority desires to create a specific service area to provide service to,
WHEREAS, the ut y p
which will be known as the"Middleburg Service Area", and to adopt a specific development
policy to be implemented immediately in order to extend central water and wastewater service,
and when available, reuse water, to the Middleburg community; and
WHEREAS, to the extent that such action may constitute the creation or increase.oldie-
rates, fees and charges imposed by the Authority, the Authority has duly noticed its formal
adoption of the proposed Middleburg Service Area Development Policy for consideration at a
Public Hearing scheduled for 2:30 p.m. on May 18, 1999, thereby supplementing the Rate
Resolution by the express terms thereof; and
WHEREAS, as a result of its discussion and informal direction to Authority staff for a
revision in the financing provisions of the proposed policy at the May 18, 1999, the Board of
• Supervisors, upon completion of such hearing, and by its final review and approval of the revised
proposed policy, has by its formal action this date determined that it is in the best interest of the
Authority, its ratepayers, and the citizens of Clay County, Florida, to adopt the Authority's
Middleburg Service Area Development 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 Middleburg Service Area Development Policy in the form attached hereto, is hereby
adopted as the current Middleburg Service Area Development Policy of the Authority.
Section 2.
The Rate Resolution is hereby supplemented by the adoption of this Resolution No.
98/99-10, 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 Authority's Middleburg Service
Area Development Policy, and any facilities extensions, connections and/or projects financed
thereunder, the provisions of this resolution shall control.
• Page 3 of 4 CCUA RESOLUTION NO. 98/99-10
• Section 3.
This Resolution No. 98/99-10 shall become effective immediately upon its adoption.
PASSED AND ADOPTED this 1st day of June, 1999.
CLAY COUNTY UTILITY AUTHORITY
By: W17/
R.H. Kart, airman
Board of Supervisors
ST:
• Secretary,Board of Supervisors
(Seal)
• Page 4 of 4 CCUA RESOLUTION NO. 98/99-10
•
• 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
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