TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA
TITLE: An Ordinance of the City of North Port, Florida, Regarding Water and Wastewater Utility Line Extension and Connection Charges, Creating an Early Connection Incentive, and Creating a Customer Connection Hardship Program; Amending the Code of the City of North Port, Florida, Section 78-31; Providing for Findings; Providing for Conflicts; Providing for Severability; Providing for Codification; and Providing an Effective Date.
Recommended Action
First Reading:
City Commission approve and continue Ordinance No. 2022-24 to second reading
Second Reading:
Adopt Ordinance No. 2022-24
Third Reading:
Adopt Ordinance No. 2022-24
Background Information
On July 26, 2022, GovRates, Inc. presented the completed 2022 Utility Rate Analysis Report where rates, fees, and charges were analyzed to ensure sufficiency in order to cover costs of providing the services. The analysis resulted in several recommended changes to the capacity fees, user rates, and miscellaneous fees. The City Commission gave direction for staff to move forward with the proposed changes as well as incorporate other changes discussed during the neighborhood expansion meetings.
Ordinance No. 2022-24 incorporates the following changes:
Ø A $15,000 Wastewater Line Extension Fee per Equivalent Residential Connection, which was confirmed to be sufficient and competitive
Ø Changing the Water Line Extension Fee from $43.75 per linear foot to $7,500 per Equivalent Residential Connection, which was confirmed to be sufficient and competitive
Ø Added a septic tank credit based on the previously adopted well credit
Ø Incorporated the early connection incentive for existing homeowners
Ø Added a not to exceed financing time period for the connection charges
Ø Incorporated a hardship program for qualifying homeowners
The Ordinance has been reviewed by legal for form and correctness.
Changes on Second Reading:
1) Changes made to line 187 include striking the word construction and adding the word incentive
2) Changes made to lines 187-195 to include the words “or replacement” where all instances state new well and/or septic tank
3) Scrivener’s error was corrected on line 254 to refer to updated code section 78-31(b)(3)e
Third Reading
This ordinance was scheduled for second reading on September 27, 2022 and advertised accordingly; that City Commission meeting was canceled due to Hurricane Ian and second reading was rescheduled on October 6, 2022. At the October 6, 2022 meeting, the City Commission voted to approve the ordinance. The next day, the City Attorney’s Office determined that the second reading was not properly advertised, as the advertisements specified a second reading date of September 27, 2022. The City Attorney’s Office advised that the ordinance be readvertised and scheduled for a third reading and adoption at the October 25, 2022 Commission meeting.
Strategic Plan
Good Governance
Financial Impact
There will be a negative financial impact if recommended changes are not instituted, such as the inability to complete necessary repair and replacement projects, maintain adequate debt coverage and/or maintain current level of service or the burden of the costs will fall on existing ratepayers.
Procurement
N/A
Attachments:
1. Ordinance - First Reading
2. Ordinance - Second Reading
3. Ordinance - Third Reading
Prepared by: Michelle Tipp, Utilities Business Manager
Department Director: Nancy Gallinaro, Utilities Director