Laserfiche WebLink
connected with the public sewer facilities of the sewer system of the county or franchised private utility <br />system upon approval of the department, and use such facilities within sixty (60) days following notification <br />to do so by the department. All such connections shall be made in accordance with the rules and regulations <br />which shall be adopted from time to time by the county. No connection of existing structures will be required <br />to be made unless capacity is available." <br />The BCC should consider whether this ordinance applies to those parcels that have an active and working <br />septic tank, yet would be able to connect to a newly constructed centralized system. The COS has the <br />following: <br />COS Ordinance Section 102.33 -Connection required. 'The owner of improved real property wherein either <br />sewer collection service or water distribution service, or both services, becomes available, shall cause the <br />connections of such available services to the improvements on the premises within 30 days of receipt of <br />notification that the utility has installed the necessary meters. The city council may extend this 30 -day period <br />for good cause upon written request by the owner." <br />According to Florida Statutes Title XXIX, Chapter 381.00655: (1)(a) The owner of a properly functioning <br />onsite sewage treatment and disposal system, excluding an approved onsite graywater system, must connect <br />the system or the building's plumbing to an available publicly owned or investor-owned sewerage system <br />within 365 days after written notification by the owner of the publicly owned or investor-owned sewerage <br />system that the system is available for connection. <br />Note: There are some exceptions to this connection requirement under 381.0655 (2)(a -c). See Attachment 3 <br />for the statute language. <br />This policy would be a new approach in dealing with existing structures from what has been practiced in the <br />past. The upside to the new approach would be a policy that could allow a utility to thoughtfully prepare <br />projects, pursue additional grants and more realistically budget a project based on a set of known variables <br />in order to determine costs, financing options and funding solutions. The down side of a new approach will <br />be those property owners that do not have the financial wherewithal to pay for these improvements, or the <br />perception that their local government is forcing restrictive obligations onto them. <br />FINANCING: <br />Currently, any utility assessment project can be financed at a 5% annual interest rate. This rate is set by the <br />BCC each January. Staff would propose two options for Board consideration: 1) a reduction of the annual <br />interest rate and 2) a sliding scale cost subsidy. <br />The annual interest rate of 5% for assessment projects has been in place for several years and was reduced <br />during the great recession time period. The reduction was to assist property owners who may have been <br />affected by the economic downturn. An additional reduction for just the Phase 1 S2S project from a 5% to a <br />2% annual interest rate is proposed so that borrowing costs to the property owners is as low as possible <br />while still allowing the utility to cover nominal administrative and financial service costs needed to service <br />these loans. For comparative purposes, staff looked at the State of Florida revolving fund program. A State <br />Revolving Fund (SRF) is a fund administered by a U.S. state for the purpose of providing low-interest loans <br />for investments 'in water and sanitation infrastructure (e.g., sewage treatment, stormwater management <br />facilities, drinking water treatment), as well as for the implementation of nonpoint source pollution control <br />and estuary protection projects. SRF receives its initial capital from federal grants and state contributions. <br />The current rate is just below 2%, therefore an interest rate of 2% was utilized in the calculations. <br />The sliding scale impact free cost subsidy could be used to help entice property owners to connect sooner. <br />Such a program may take place over a five-year period. Below is a hypothetical scenario whereby all of the <br />subsidy funds would be available to qualified property owners in the first year. As time goes by, funding <br />Page 6 of 8 <br />P139 <br />