HomeMy WebLinkAboutItem VI (A) First Reading of Ordinance No. 96-03, relating to Stormwater Utility Fee Increase - Second Reading and Public Hearing Scheduled/or March 19, 1996 AGENDA 3-5-96
Item VI A
MEMORANDUM
DATE: February 27, 1996
TO: The Honorable Mayor and Board of City Commi ers
FROM: Montye E. Beamer, Director
Administrative Services
SUBJECT: Stormwater Utility Fee Increase
Ordinance 96-03
On December 14, 1995 (City Commission Work Session), Professional Engineering Consultants
issued the Stormwater Utility Feasibility Study dated December 13, 1995. At the February 6,
1996 Commission meeting the project list was updated to add areas recommended by Mayor
Vandergrift. During the work session and the commission meeting, the financing alternatives
were discussed along with the necessity to increase the equivalent residential unit (ERU) charge
from $3.00 per month per ERU to $4.50 per month per ERU in April, 1996 and to $5.00 per
month per ERU in October, 1998. These increases would pay for financing Phases I and II of the
Capital Improvement Program as outlined in the attached engineer's report (at a total of
$3,630,674, including engineering and design services), the current maintenance program,
operating expenses and National Pollutant Discharge Elimination System (NPDES) permit
compliance.
Ordinance 96-03 represents the changes to the scheduled rates, incorporates the required
NPDES wording, and removes the fee adjustments which are not applicable.
There are two circumstances about which the City Commission needs to be apprised. First, the
Request for Proposal (RFP) for "Bank Qualified" Financing of the Stormwater Utility
Improvements for the City was advertised on February 18,1996. To date RFP's have been mailed
to: First Union National Bank of Florida; SunTrust National Bank of Central Florida;
NationsBank; AmSouth Bank of Florida; South Trust Bank; Barnett Bank of Central Florida;
Marion Bass Securities Corporation; Signet Leasing & Financial Corp.; Riverside Leasing Co.;
and Commercial & Municipal Capital, LLC. The opening is scheduled for March 12,1996.
Secondly, in Orange County a group led by Jim Thomas will be requesting the Orange County
Board of County Commissioners to (1) implement their stormwater utility which was voted in
some three years ago for retrofit and land purchases and (2) place on the ballot a 1/2 cent sales
tax referendum for such stormwater projects. The utility would yield approximately twelve (12)
million dollars while the 1/2 cent would gross approximately fifty (50) million dollars. Should
the half-cent sales tax referendum pass, the group would look to the County to rescind its utility.
However, no formal discussions have occurred with any Orange County cities as to how such an
additional tax would affect each city, how the projects would be determined or how the
Countywide proceeds would be distributed. Jim Thomas is now aware of the need for
communication with the cities as well as the need for municipal involvement.
Staff recommends (1) the increase in the stormwater utility fee to $4.50 per month per ERU
effective April 1, 1996 and $5.00 per month per ERU effective October 1, 1998 for the
Stormwater Utility Improvements; (2) the approval of Ordinance 96- 03 ; and, (3) the
authorization for the Mayor and City Clerk to execute.
MEB/jbw
ATTACHMENT 1
ENGINEER'S REPORT
BACKGROUND OE-249
The City of Ocoee, Florida is a residential community in western Orange County, Florida
and was incorporated in 1925. The City is bounded on the west by the City of Winter Garden
and on the south by the City of Windemere. The City of Ocoee is the second largest city in land
area in Orange County and the fastest growing city in Orange County. The City of Ocoee has
a land area of approximately 20.5 square miles and a population of 19,500. The average annual
household income as estimated by the West Orange Chamber of Commerce is $35,000 and the
median age of an Ocoee resident is 36 years old.
STORMWATER UTILITY
The City initiated a Stormwater Utility effective October, 1991. The Stormwater Utility
is based on an equivalent residential unit (ERU) of 2,054 square feet. The Stormwater Utility
is authorized by Chapter 150 of the Code of the City of Ocoee. The Stormwater Utility
authorizes the establishment of a program of user charges and fees for stormwater management
services. The collected stormwater utility fees are kept separate from all other revenue and
placed into the proprietary fund known as the Stormwater Management Fund. Such fund is be
used for the purpose of paying the capital cost of stormwater management facilities, operation
and maintenance of the stormwater facilities, debt service and the cost of stormwater facility
administration including a prorata charge for general city government as in effect for other city
utilities.
The Stormwater Utility currently has 13,333 ERUs and future growth projections are
shown in Table 1. The current monthly charge for the Stormwater Utility is 3.00 per ERU per
month. Based on a review of the stormwater management system future requirements for capital
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improvements, 0 & M and NPDES permit requirements, the City Commission has authorized
the advertisement of an ordinance for the purpose of increasing the monthly stormwater utility
fee. The recommended increase is $4.50 per ERU per month effective April, 1996 and $5.00
per ERU per month effective October 1998. The revenue projections shown in Table 1 include
the projected rate increases.
TABLE 1 - STORMWATER UTILITY REVENUE PROJECTIONS
YEAR ERU REVENUE
FY95/96 13,333 $600,000
FY96/97 15,315 $826,508
FY97/98 15,963 $862,013
FY98/99 16,313 $978,792
FY99/20 16,663 $999,792
The City uses the Stormwater Utility revenue to pay for operating expenses, maintenance
programs, NPDES permit compliance and projected future debt service payments. Projected
future expenditures are described in Table 2.
TABLE 2 - STORMWATER UTILITY EXPENSES
YEAR OPERATING MAINTENANCE NPDES TOTAL
EXPENSE PROGRAM PROGRAM
FY95/96 $400,000 $110,000 $172,000 $682,000
FY96/97 $412,000 $110,000 $92,000 $614,000
FY97/98 $424,360 $110,000 $124,000 $658,360
FY98/99 $437,091 $110,000 $135,000 $682,091
FY99/20 $450,204 $110,000 $131,000 $691,204
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STORMWATER CAPITAL IMPROVEMENT PROGRAM
During the wet seasons of 1994 and 1995, the City experienced above average rainfall
and had numerous complaints related to drainage problem areas. The 1994 and 1995 estimated
rainfall for the City was approximately 20 inches higher than the annual average rainfall.
The City of Ocoee authorized Professional Engineering Consultants, Inc. to prepare an
Engineering Report concerning the City's stormwater drainage problem areas. This report was
completed and presented to the City Commission in December 1995. The Engineering Report
is a summary of PEC's investigation into the drainage related problems identified by the City
staff. The report includes a description of each drainage problem, possible solutions and
associated capital costs for the recommended solutions.
Tables 3A and 3B are a description of the recommended Phase I and Phase II Stormwater
Capital Improvement Programs, respectively. The Capital Improvement Program is divided into
two (2) phases. The cost estimates for each project includes engineering and design services and
a fifteen percent contingency.
TABLE 3A - PHASE I CAPITAL IMPROVEMENT PROGRAM
Problem Area General Location Estimated
No. (and Description) Cost
1 Dovetail Court (Coventry Subdivision) $100,086
(install underdrains)
2a Pioneer Key II Mobile Home Park $320,128
(upgrade outfall pipes)
3 Flewelling Drive/Russell Drive Intersection $55,762
(install inlets and exfiltration system)
4 Kimball Drive (install ribbon curb) $16,660
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TABLE 3A - PHASE I CAPITAL IMPROVEMENT PROGRAM
Problem Area General Location Estimated
No. (and Description) Cost
6 Coventry Subdivision $249,900
(install roadway underdrains)
9 Sawmill Subdivision-Southwest Pond $198,156
(install an outfall system)
11 Forest Oaks Subdivision (install an outfall system) $257,595
16a Pioneer Key I Mobile Home Park $64,820
(upgrade outfall pipes)
17 Ocoee Hills Road/Pinewood Lane Intersection $41,286
(replace exfiltration system)
18 Bluford Avenue/Orlando Avenue Intersection $57,596
(install inlets and exfiltration system)
19 Sawmill Subdivision (install roadway underdrains) $241,850
20 Little Spring Hill/Northern Durango Intersection $62,646
(replace damaged storm sewer pipes)
21 Windswept Court (Highlands of Ocoee) $11,414
(install interceptor inlet and pipe)
23 Sullivan/Silver Star Ditch (install inlets and pipes) $30,657
25 Franklin Street Area (install inlets and pipes) $44,806
26 Lakeview Village (replace inlet) $45,074
27 Nancy Ann Terrace (replace damaged storm sewer pipes) $27,905
28 Miscellaneous Drainage and Roadway Improvements $117,953
(includes 59 individual projects throughout the City of
Ocoee)
29 Doreen Avenue/Lady Avenue Intersection $8,464
(roadside swales)
31 Prairie Lakes Boulevard (Forest Oaks Subdivision) $27,440
(install underdrains)
Phase I Total $1,980,198
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TABLE 3B - PHASE II CAPITAL IMPROVEMENT PROGRAM
Problem Area General Location Estimated
No. (and Description) Cost
2b Pioneer Key II Mobile Home Park $680,013
(stormwater pond)
5 Center Street Ditch $163,987
(install pipes and stormwater pond)
10 Apopka-Vineland Road Unnamed Lake $464,142
(install an outfall system)
16b Pioneer Key I Mobile Home Park $242,514
(stormwater Pond)
24 Lakeshore Drive - City Hall (reconstruct the road and $103,928
install a storm sewer system)
Phase II Total $1,654,584
TOTAL COST $3,634,782
CONCLUSIONS
Based on PEC's review of the City of Ocoee's stormwater system, review of studies
performed by PEC and other Engineering Consultants and our recent site visits to the stormwater
system, to the best of our knowledge and belief, PEC concludes the following:
1. The stormwater system is generally in good condition and has been maintained
in accordance with standard industry practices, and provides generally good,
reliable and cost-effective flood protection to the customers of the Stormwater
Utility.
2. The City's stormwater management system is operated in substantial compliance
with current Federal, State and Local requirements. The City will be
implementing the recently issued Federal NPDES permit conditions in the near
future.
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3. The Stormwater Capital Improvements Program is necessary. The projects
contained in the Capital Improvements Program are technically sound and
conform to proven industry accepted engineering practice.
4. It is reasonable to assume that all required regulatory permits and/or
governmental approvals will be obtained in a timely manner for regulatory
compliance and will be obtained prior to the construction of the proposed Capital
Improvement Program.
5. The growth estimates are reasonable and the estimates of revenue and expenses
are reasonable and conservative.
6. Proceeds from this financing will be sufficient for design, construction and
implementation of the Stormwater Capital Improvements Program.
7. The useful life of the Stormwater Capital Improvements Program is in excess of
the proposed stormwater financing.
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ORDINANCE NO. 96-03
AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA
RELATING TO STORMWATER UTILITY FEES;
AMENDING SECTIONS 150-6, 150-7(F),150-8 AND 150-10(A)
OF CHAPTER 150 OF THE OCOEE CITY CODE;
REVISING THE SCHEDULE OF RATES, COMMENCING
ON APRIL 1, 1996, FROM $3.00 TO $4.50 PER MONTH
PER ERU AND, COMMENCING ON OCTOBER 1, 1998, TO
$5.00 PER MONTH PER ERU; PROVIDING FOR ANNUAL
REVIEWS OF THE SCHEDULE OF RATES TO
COMMENCE IN 1999; REVISING THE PROCEDURE FOR
UPDATING AND AMORTIZING THE BILLING FOR THE
STORMWATER UTILITY FEE; PROVIDING FOR THE
REVIEW AND ESTABLISHMENT OF NECESSARY
PROGRAMS FOR COMPLIANCE WITH THE NPDES
SYSTEM; DELETING CERTAIN PROVISIONS RELATING
TO ADJUSTMENT REQUESTS; PROVIDING FOR
SEVERABILITY; PROVIDING FOR CODIFICATION;
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Ocoee received and reviewed
the Stormwater Utility Feasibility Study prepared by Professional Engineering Consultants, Inc.,
dated December 13, 1995; and
WHEREAS, the City Commission has conducted an advertised public hearing
regarding the proposed amendments to the Stormwater Management Utility System Chapter; and
WHEREAS, the City Commission desires to amend the Stormwater Management
Utility System Chapter based upon the Stormwater Utility Feasibility Study prepared by
Professional Engineering Consultants, Inc., dated December 13, 1995.
NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF
THE CITY OF OCOEE, FLORIDA, AS FOLLOWS:
SECTION 1. Authority. The City Commission of the City of Ocoee has the
authority to adopt this Ordinance pursuant to Article VIII of the Constitution of the State of
Florida and Chapters 403 and 166, Florida Statutes.
SECTION 2. Revision to Section 150-6 relating to Schedule of Rates.
Section 150-6 of Chapter 150 of the Code of Ordinances of the City of Ocoee, Florida, is hereby
amended to read as follows:
§ 150-6. Schedule of rates.
The stormwater utility fee shall be charged at the rate of twee four dollars
and fifty cents ($3.) ($4.50) per month for each ERU. Effective October 1,
1998, the stormwater utility fee shall be charged at a rate of five dollars ($5.00)
per month for each ERU. The number of ERU's applicable to each developed
lot or parcel shall be calculated in accordance with the provisions of § 150-5
hereof. Commencing in 1999 and each year thereafter, Tthe City Commission
shall annually review the rates established by this section in order to make such
revisions as are necessary to reasonably cover the cost of providing stormwater
management services.
SECTION 3. Revision to Section 150-7(F) Relating to Billing. Section 150-
7(F) of Chapter 150 of the Code of Ordinances of the City of Ocoee, Florida, is hereby amended
to read as follows:
F. The city may backbit' update the billing for the stormwater
utility fee to the owner, tenant or occupant of developed
property whenever the City Engineer determines that such
owner, tenant or occupant has been underbilled or has not been
sent a bill for stormwater utility fees as provided by this
chapter; provided, however, that the city may not backbit' bill
for any period greater than twelve (12) months from the date
the City Engineer or his designee notifies such owner, tenant or
occupant of such underbilling or nonbilling. In any event, the
owner, tenant or occupant may extend amortize the payments
of the .. - , - .. - . • • . . - amount due up to
the same period for which the city issued the backbill updated
bill not to exceed twelve (12) months.
SECTION 4. Revision to Section 150-8 Relating to Powers and Duties of
City Engineer. Section 150-8 of Chapter 150 of the Code of Ordinances of the City of Ocoee,
Florida, is hereby amended to read as follows:
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§ 150-8. City Engineer; Director of Public Works; powers and duties.
A. The City Engineer shall have the following powers, duties and
responsibilities with respect to this chapter and the city's
stormwater management system:
(1) To administer and enforce this chapter and any other
appropriate stormwater related ordinance and support
regulations in the operation, maintenance, alteration,
repair and replacement of stormwater management
systems, facilities and devices.
(2) To plan and execute the city's stormwater management
program, except for the performance of routine
maintenance and minor improvements to the stormwater
management system.
(3) To plan, design and acquire rights-of-way and easement
for and construct capital projects as approved and funded
by the City Commission.
(4) To research, develop and refine experimental and
prototypical stormwater management systems, facilities,
devices and techniques.
(5) To inspect public and private systems so as to assure
performance and compliance with all applicable
stormwater codes and regulations.
(6) To review and approve all new development permits and
all drawings, submittals and site plans, both public and
private, for stormwater management systems, devices and
facilities for adequacy, sufficiency and consistency with all
applicable codes and regulations.
(7) To prepare a Master Stormwater Management Plan.
(8) To keep accurate records of all persons using the services
and facilities of the stormwater management system of the
city and to make changes in accordance with the rates and
charges established by this chapter.
(9) To determine the impervious area of nonresidential
property based on data supplied by the County Property
Appraiser, or if such information is unavailable, then
based on such other data as may be available, including
but not limited to data provided by the property owner,
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tenant or developer, and to update and revise such
determinations based on any additions to the impervious
area as approved through the building permit process.
(10) To charge and collect stormwater utility fees, fines and
penalties; conduct periodic rate studies so as to maintain
an efficient and equitable rate structure; and ensure a
prudent and stable financial base from which to operate.
(11) To advise the City Manager or, consistent with the
Charter, other appropriate city officials on matters
concerning stormwater management.
(12) To promulgate rules, practices and procedures necessary
for efficient and effective management of the utilitt
stormwater management system.
(13) . . •• . •• . .. . . . - . . , - • -
- - ' - ; - . • . - - • •- . To review and
provide necessary programs for compliance with the
NPDES(National Pollutant Discharge Elimination System)
municipal separate storm sewer system (MS4) permit
requirements for the city.
B. The Director of Public Works shall have the following powers,
duties and responsibilities with respect to this chapter and the
city's stormwater management system:
(1) To plan and execute the performance of routine
maintenance and minor improvements to the city's
stormwater management system.
(2) To perform acts incidental and/or necessary to the efficient
and effective operation of the utiles stormwater
management system.
SECTION 5. Revision to Section 150-10(A)Relating to Adjustment of Fees.
Section 150-10(A) of Chapter 150 of the Code of Ordinances of the City of Ocoee, Florida, is
hereby amended to read as follows:
§ 150-10. Adjustment of fees.
A. Requests for adjustment of the stormwater utility fee shall be
submitted to the City Engineer, who is hereby given the
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authority to develop and administer the procedures and
standards for the adjustment of fees as established herein. All
requests with respect to nonresidential property shall be judged
on the basis of the amount of impervious area on the site. No
credit shall be given for the installation of facilities required by
the city or county development codes or state water
management district stormwater rules. The following
procedures shall apply to all adjustment requests of the
stormwater utility fee:
(1) Any owner, tenant or occupant who has paid his
stormwater utility fee and who believes his stormwater
utility fee to be incorrect may, subject to the limitations
set forth in this chapter, submit an adjustment request to
the City Engineer.
(2) Adjustment requests for the stormwater utility fees paid
by an owner, tenant or occupant making the request shall
be in writing and shall set forth, in detail, the grounds
upon which relief is sought.
exceed one (1) year.
herein.
f3 The owner, tenant or occupant requesting the adjustment
may be required, at his own cost, to provide supplemental
information to the City Engineer, including but not limited
to an independent fee calculation, survey data including
the impervious areas, approved by a registered
professional land surveyor and engineering reports
approved by a professional engineer. Failure to provide
such information may result in the denial of the adjustment
request.
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(4) {6} Adjustments to the stormwater fee will be made upon the
granting of the adjustment request, in writing, by the City
Engineer. Denials of adjustment requests shall be made,
in writing, by the City Engineer.
WORDS UNDERLINED ARE ADDITIONS; WORDS IN TYPE ARE DELETIONS.
SECTION 6. Severability. If any section,subsection,sentence, clause,phrase
or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of
competent jurisdiction, such portion shall be deemed a separate, distinct and independent
provision and such holding shall not affect the validity of the remaining portion hereto.
SECTION 7. Codification. It is the intention of the City Commission of the
City that the provisions of this ordinance shall become and be made a part of the Code of
Ordinances of the City; and that sections of this ordinance may be renumbered or relettered and
the word "ordinance" may be changed to "chapter", "section", "article", or such other
appropriate word or phrase in order to accomplish such intentions; and regardless of whether
such inclusion in the code is accomplished, sections of this ordinance may be renumbered or
relettered and the correction of typographical errors which do not affect the intent may be
authorized by the City Manager, without need of public hearing, by filing a corrected or
recodified copy of same with the City Clerk.
SECTION 8. Effective Date. This Ordinance shall become effective on
April 1, 1996.
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PASSED AND ADOPTED this day of , 1996.
APPROVED:
ATTEST: CITY OF OCOEE, FLORIDA
Jean Grafton, City Clerk S. Scott Vandergrift, Mayor
(SEAL)
ADVERTISED March 7 , 1996
READ FIRST TIME March 5 , 1996
READ SECOND TIME AND ADOPTED
, 1996,
UNDER AGENDA ITEM NO.
FOR USE AND RELIANCE ONLY BY
THE CITY OF OCOEE, FLORIDA
APPROVED AS TO FORM AND LEGALITY
this day of , 1996.
FOLEY & LARDNER
By:
City Attorney
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