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HomeMy WebLinkAboutPolicy Extensionr_660 0 General Development Utilities, Inc. The Honorable Pat Flood Mayor, City of Sebastian Post Office Box 127 Sebastian, Florida 32958 Dear Pat, RECEIVED MAY 2 9 t99i May 26, 1981 Q. P. Mozlan Executive vice President I,am pleased that we had a chance to talk last week, away from the formalities of our normal meetings at workshops and City Council meetings. I hope you accomplished all of your objectives while you were down here. I am enclosing the copy of our Service Availability and Main Extension Policy which we discussed very briefly. As I mentioned to you, we plan to ask the City to permit us to change the cost figures contained in Sections 3.0 and 8.0 which would permit us to collect a larger, one-time connection charge from. new customers. As of yet, the numbers have not been computed, and I would anticipate we will be in a position to talk to you by the end of June. As you are aware, the connection charges will not affect any existing customer and will apply only to new connections. In the beginning, virtually all of the increased cost will be borne by General Develop- ment Corporation. The raising of the connection charges is recorded on the utility's books as Contributions -in -Aid of Construction, which are a deduction from the earnings base. As a deduction from the earnings base they will help to keep the monthly rates from rising higher than they could. In addition, the higher the Contributions -in -Aid of Construction, the lower the ultimate selling price will be to the City when it exercises its option to purchase. When we discuss this matter with you later in June, I will provide you with additional data and substantiation. Should you desire any information in the interim, please don't hesitate to call me. Regards, 4��: G. P. Mozian GPM:ic Enclosure cc: W. L. Allen M. E. Broom C. Morris 1111 South Bayshore Drive, Miami, Florida 33131, Telephone 306 350 1331 A General Development Subsidiary GENERAL, DEVELOPMENT UTILITIES, INC. SERVICE AVAILABILITY AND MAIN EXTENSION POLICY I EFFECTIVE IN THE FOLLOWING DIVISIONS NORTH PORT VERO SEBASTIAN PORT LABELLE , INL. GENERAL DEVELOPMENT UTILITIES, INC. SERVICE AVAILABILITY AND MAIN EXTENSION POLICY Harold E. Schmidt. President GENERAL DE•VELOPAIENT UTILITIES, INC. ORIGINAL SHEET NO. 2.0 INDEX Rule No. Sheet No. 1.0 General Policy 2.0 ............................ Availability 3.0 3.0 ......... .... Main Extension and Connection (Plant 3.0 Capacity) Charges ................ 3.0 4.0 Gallons Per Day, Water and Sewer -De Characteristics.................. 5.0 ..... ..... Preparation of Developer �Agreements..... 4.0 6.0 Water and Sewer Capacity Allocations 4.0 7.0 ' .����� Water Service Only - Sewer Service Only*..** 5.0 8.0 Water Meter Installation Fees ............. 5.0 9.0 Action by Governmental Authority 6.0 10.0 .......... Transfer of Contributed Property - Bills 11.0 ofSale ............... ........ ......... InspectionFees ..� 6.0 12.0 Inspection of Plumber's Hook -Up........... 'Adjustment 8.0 13.0 . Provisions ..................... .............. 8.0 14.0 Prior Policy ........................... Extensions Outside utside Territory 8.0 16.0 .............. Distribution and Collection Systems Constriction 9.0 17.0 ... ................ ... Inspections 9.0 18.0 ...................... -Refundable Advances 10.0 19.0 Guaranteed Revenue Agreement 10.0 11.0 20.0 ... Reserve Capacity Charge ......... ........ 11.0 Exhibit ,'At' .... ........... ................. 12.0 •� Harold E. Schmidt, President GENERAL DEVELOPMENT UTILITIES, INC. ORIGINAL SHEET NO. 3.0 1.0 GENERAL POLICY. General Development Utilities, Inc., a Florida corporation, hereinafter referred to as Utility, adopts and incorpor- ates herein by reference Part IX, Rules and Regulations for Service Availability for Water and Sewer Systems, of the Florida Public Service Commission, promulgated under CoM- mission Order No. 6397. Utility will make available ser- vice and extensions of service under said Rules, subject to matters of economic feasibility, as defined in Rule No. 25-10.121 of the said Commission Rules and Regulations. This.Policy shall not apply to developer's agreements entered into between Utility and contributors which reflect Policies implemented and contracts entered into prior to the adoption of Part IX, Rules and Regulations, of the Florida Public Service Commission. (25-10.120, F.A.C.) The word "person" as used in Rule 25-10.121(5), F.A.C., shall mean and include "political subdivision" as defined in subsection 1.01(9), Florida Statutes. 2.0 AVAILABILITY. The provisions of this Policy are available to contribu- tors throughout the territory subject only to matters of economic feasibilty. -(For Rules governing service out- side the territory, see Paragraph 15.0 of this Policy.) (For reference to prior policies, see Paragraph 14.0 of this Policy.) (See Section 367.121(1)(d), Florida Stat- utes.) 3.0 MAIN EXTENSION AND CONNECTION (PLANT CAPACITY) CHARGES. The following is the charge being made by Utility to con- tributors (including the Parent Company) upon approval of the Public Service Commission or other governmental agency having jurisdiction of this Policy, where water or sewer service is available or agreed to be made available, in the territory. "On-site" or "off-site" water distribution and sewage collection lines and facilities are included in these charges and provisions. - Charges to contributors pursuant to this Policy are calcu- lated on a cost based upon the estimated demand of the con- tributors'_proposed installation, upon the transmission and treatment facilities of the Utility, and is computed by multiplying the following rates by the daily rated gal- lons of demand set forth in Exhibit A, as modified by Paragraph 6.0 of this Policy. Connection (plant capacity) charges are stated per gallon demand for water and sewer service. (Continued to Sheet No. Harold E. Schmidt, .�. President GENERAL DEVELOPMENT UTILITIES, INC. ORIGINAL SHEET NO. 4.0 (Continued from Sheet No. 3.0) Connection (plant capacity) I,'ater: $0.36 / Sewer: $0.36 Extension charges are stated at the charge per foot measured along front of the property to be served. Main Extension Charge Water: $2.19 Sewer: $6.54 -� 3.01 Main extension charges for service to customers outside Utility's certificated service area will be negotiated. (a) Such customers may be required to advance the full cost of on-site and off-site mains, subject to refund of -portions thereof in excess of the contributor's hydraulic share. (b) In addition to payment of the above, connection (plant capacity) charges will be required to support excess plant capacity dedicated to the contributor.. 4.0 GALLONS PER DAY, WATER AND SEWER DErL4ND CHARACTERISTICS. In Exhibit A, attached hereto,.is a list of daily rated gallons of demands for various occupancies which will be �\ used in computing Connection (plant capacity) and Main Extension Charges. In the instance of common facilities for multiple dwelling units such as irrigation, laundering, recreation facilities, and commercial and commercial/resi- dential facilities, determination of connection (plant capacity) and main extension charges will be based upon the use characteristic defined by engineering data supplied by the prospective contributor, as accepted by Utility. (25-10.121(11), F.A.C.) 5.0 PREPARATION OF DEVELOPER AGREEMENTS. Utility may require that the contributor, in addition to the fees and charges set forth herein, bear the cost of preparation of developer agreement by independent counsel or persons qualified to draft and prepare such agreements. Said charges shall not exceed that amount normally to be contemplated for such service. (25-10.1371F.A.C.; 25-10.139, F.A.C.) -- 6.0 NATER AND SEIVER CAPACITY ALLOCATIONS. I:Upon payment by the contributor and its proper execution of an agreement for service availability pursuant to these rules, Utility will reserve and will allocate to the _ - (Continued to Sheet No. 5.0) } Harold E. Schmidt, President GENERAL DEVELOPMENT UTILITIES, INC. ORIGINAL SHEET NO. 5.0 (Continued from Sheet. No. 4.0) contributor the portion of water and seiner plant and off- site line capacity as set forth in the agreement. If, for example, the contributor shall calculate demand of 3S0 gallons of water per day per single family residence, that capacity will be built or reserved for the contribu- tor. Utility will not be obligated to provide capacity or service in excess of that allocation and may require con- sumers to curtail use which exceeds such allocated capacity. In those areas where the experience of Utility has demon- strated that the demand characteristics of customers of the community exceed those daily rated gallons of demand set forth in Exhibit A, Utility shall require that the con- tributor pay those fees and make the necessary commitments based on the actual and experienced demand, and not the average demand. Thus, when Utility shall demonstrate to the developer that its records and experience show, for example, that a single-family residence of the type which the contributor proposes to build in the specific community places demand during certain times of the year equal to 600 gallons of water per day, then the charges per gallons de- mand set forth in Paragraph 3.0 of this Policy shall be multiplied by 600 gallons. In no event shall Utility be required to build or accept plans, specifications, fees, charges or agreements predicated upon demand for water service of less than 350 gallons per single-family resi- dential equivalent or sewer service or less than 350 gallons per residential equivalent per day. (25-10.121(13), F.A.C.) 7.0 WATER SERVICE ONLY - SEWER SERVICE ONLY. In any instance where either water or sewer service only is furnished without the companion service, then the con- nection (plant capacity) charge shall be computed for that service only. 8.0 WATER METER INSTALLATION FEES. Meter Size Charge Maximum Water Use Demand 5/8" x 3/4" $ 75.00 20 gallons per minute log 115.00 50 gallons per minute 1-1/2" 190.00 100 gallons per minute 2" -- 265.00 160 gallons per minute (Continued to Sheet No. 6.0) ' Harold E. Schmidt, President GENERAL DEVELOPMENT UTILITIES, INC ORIGINAL SHEET NO. 6.0 (Continued from Sheet No. 5.0) Utility will not be obligated to furnish water in ex- cess of "Maximum Water Use Demand." Recommended Maximum Rate for continuous operation will be 1/3 of the Maximum Rate listed. Meters over 2 inches in size are charged upon the estimated actual cost of installation. Where actual charges differ • from estimates, the difference will be refunded by Utility if the total cost was less than the estimate, or paid by the contributor prior to initiation of water service if the actual cost exceedsthe estimated cost. The contribu- tor will be furnished a copy of the invoice at the time of installation. 9.0 ACTION BY GOVERNMENTAL AUTHORITY. 10.0 Requirements by appropriate governmental authorities to limit or curtail utility services, such as irrigation moratoriums, may restrict the use of utility services in addition to the maximum water use demand set forth in Paragraph 8.0 of this Policy. Contributors and customers obtain reservation for service or the service itself sub- ject to notice of this limitation. TRANSFER OF CONTRIBUTED PROPERTY - BILLS OF SALE. Utility reserves the right to construct all facilities for providing water and sewer service to the point of connec- tion. If Utility determines that it will accept such facilities constructed by others, the following rules will apply : Each contributor, (developer) who has constructed portions of a water distribution and sewage collection system shall convey -such component parts of the water distribution and sewage collection system to Utility by bill of sale, in form satisfactory to Utility's attorney, together with such evidence as may be required by Utility that the water and/or sewer systems proposed to be transferred to Utility are free of all liens and encumbrances. Any facilities .in the category of consumer's connections of the customer's side of the connection point shall not be transferred to -Utility and shall remain the property of individual customers, their successors or assigns. (Continued to Sheet No. 7.0) _ Harold E. Schmidt, President GENERAL DEVELOPMENT UTILITIES, INC. ORIGINAL SHEET NO. 7.0 • (Continued from Sheet No. 6.0) Utility shall not be required to accept title to any com- ponent part of the water distribution or sewage collection system until Utility's engineer has approved the construc- tion of said lines, accepted the tests to determine that such construction is in accordance with the criteria established by Utility, and thereafter evidenced its accep- tance of such lines for Utility's ownership, operation, and maintenance. Contributor shall maintain accurate cost records estab- lishi�ng the construction costs of all utility facilities constructed by contributor. Such cost information shall be furnished to Utility concurrently with the bill of sale, and such cost information shall be•a prerequisite for the acceptance by Utility of the portion of the water distribu- tion and sewage collection system constructed by the con- tributor. Utility reserves the right to refuse connection and to deny the commencement of service to any contributor seeking to be connected to portions of the water distribution and sewage collection system until such time as the provisions of this section have been fully met. With respect to a development which constitutes a "single unit" such as a mobile home park, a shopping center, or apartment complex, Utility's obligation for service and maintenance of lines and facilities located wholly within such developments, and not in public rights of way, shall _ extend solely to repair and/or replacement of the lines or .facilities, and Utility will not be liable in any manner for damages, replacement or repairs to Surface areas. 11.0 INSPECTION FEES Any engineering plans or designs for, or construction of facilities by a contributor (developer) which are to be- come a part of Utility's system, will be subject to review and inspection by -Utility. For this service, Utility may charge an inspection fee based upon the actual cost to Utility of inspection of facilities constructed -by contribu- tors or independent contractors for connection with the facilities of Utility. Such inspection fee shall be paid by the contributor in -addition to all other charges above stated, as a condition precedent to service. Harold E. Schmidt, President GENERAL DEVELOPMENT UTILITIES, INC. ORIGINAL SHEET NO. 8.0 12*0 INSPECTION OF PLUMBER'S HOOK-UP. It shall be the responsibility of the contributor or its plumbing contractor to connect contributor's plumbing in- stallation with the water or sewer system. Utility re- serves the right to inspect all such connections to be assured that the same are properly made in accordance with Utility's rules governing such connections, and that the connection, as made, is free from infiltration. The contributor shall notify Utility of any proposed inter- connection with the facilities of Utility, and connection may be made without the presence of Utility's inspector. However, such connection shall remain open until inspec- tion by Utility and until notice of the approval of such connection is furnished to the developer in accordance with the practices and procedures of Utility. Any connec- tion covered without the benefit of inspection will result in the contributor being required to reopen the connection for subsequent inspection. If Utility fails to inspect the -connection within 48 hours after notice that the same is ready to inspect, the connection shall be deemed approved by Utility. 13.0 ADJUSTMENT PROVISIONS. Governmental Authority: The charges set forth in this Policy are subject to adjustment by appropriate action of the governmental agency having jurisdiction of this Policy, either upon the initiative of the governmental agency or by request of Utility. (25-10.141, F.A.C.) 14.0 PRIOR POLICY. Prior to the adoption of this Policy,Utility had, by virtue of its obligations, established other policies which will remain. in effect until the obligations pursuant to those policies have been fulfilled. Under a previous program, Utility constructs water facilities at its own cost cover- ing approximately 51,775 lots to which water service would be extended by Utility within sixty days after the building permit has been obtained and notification of commencement of construction has been given to Utility. The cost of such water facilities is to be borne solely by Utility as an investment. The only charge to the customer would be a meter installation fee. Utility made a commitment to provide setaer service to approximately 4,341 lots, and facilities will be installed as an investment of Utility (Continued to Sheet No. 9.0) Is Harold E. Schmidt President GENERAL DE1'ELOP?,ENT UTILITIES, INC. ORIGINAL SHEET NO. 9.0 (Continued from Sheet No. 8.0) �- to those lots. These commitments by Utility were based upon contracts made in the past and are not available to prospective customers or contributors. A list showing the lots to which service will be made available, as an invest- ment by Utility, is available in Utility's office, and may be examined by any customer or prospective customer during the regular business hours of Utility's office. (25-10.120 F.A.C.) , 15.0 EXTENSION OUTSIDE TERRITORY. Providing service outside Utility's territory involves formal notice and formal proceedings before the Florida Public Service Commission and, therefore, entails engineer- ing, administrative and legal expenses in addition to costs incurred by Utility in providing service within its ter- ritory. Utility will, therefore, not be obligated to provide its services outside the territory unless the con- tributor agrees, in advance, to defray those additional expenses and pay to Utility the estimated costs thereof. The advance payment will be adjusted to conform with actual expenses after the proceedings have been concluded. Utility will further make such extensions outside the ter- ritory only if the net income to be derived from prospec- tive consumers within the area to be served by the proposed extension will provide a fair return on Utility's in- vestment in the proposed extension, transmission, and treatment facilities involved. Utility will not extend its facilities under circumstances where the extensions will cause service to existing customers to suffer either as a result of reduction of capacity to provide its service to customers, or the diminishment of the economic capability Of Utility to meet its financial commitments. (See Section 367.0"1; 367.121(2), Florida Statutes) 16.0 DISTRIBUTION AND COLLECTION SYSTEMS CONSTRUCTION. If any on-site distribution and collection systems are con- structed by the contributor as set forth in Paragraph 10.0 herein, Utility shall establish specifications based upon good engineering and public utility practices, and the con- tributor shall not less than thirty (30) days prior to com- mencing construction, furnish Utility with a complete copy of the plans and specifications of the proposed on-site collection and distribution system. Utility shall have twenty -(20) days in which to determine the acceptability . of the plans and specifications furnished to it by the con- tributor. If Utility shall object to the plans and specifica- tions or any part thereof, the contributor shall defer the commencement of construction pending the resolution of Utility's objections. (25-10.127, F.A.C.) Harold E. Schmidt, President GENERAL DEVELOPMENT UTILITIES, INC. ORIGINAL SHEET NO. 10.0 ~ 17:0 INSPECTIONS. Utility shall have, at all times during the construction, the right to inspect the construction of the on-site dis- tribution and/or collection systems being built by the con- tributor, or his agents or employees, as set forth in Paragraph 11.0 of this Policy and receive payment of fees referred to therein. 18.0 REFUNDABLE ADVANCES. Utility may require, in addition to the charges set forth herein, a refundable advance by a contributor to tempor- arily defray the cost of any off-site extension of water and/or sewer mains, pumping stations, and other facilities necessary to connect the developer's property with the then proper point of interconnection with Utility's exist- ing water and sewer facilities, in size needed to provide service to the subject property. The contributor may -be required to advance to Utility additional main extension charges based upon the anticipated hydraulic load require- ments of the undeveloped property in order that such off- site facilities may be constructed to serve the developer's property and be in accordance with Utility's master plan for service to the immediate surrounding area. Charges paid by the contributor over and above the contributor's hydraulic share of the off-site facilities, shall be re- funded to the developer in accordance with the terms and conditions of a refunding agreement which Utility will execute with the contributor. The refund agreement will provide for a plan of refund based upon connection of other properties to the extent of their hydraulic share with other properties that will be served by the off-site facilities and styled at the expense of "the contributor. Notwithstanding the provisions of this Section, Utility may limit the life of the refund agreement to a term of at least seven years, after which time 'a portion of the re- fund not made to the contributor by the terms and condi- tions of the refund agreement will be retained by Utility, and such refund agreement will be cancelled. In no event shall a contributor recover an amount greater than the dif- ference between the capitalized cost of such off-site improvements and the developer's own hydraulic share of such improvement. Utility will not include any interest upon the refund of the developer's advance_ (25-10.121(20), F.A.C.) Harold E. Schmidt, President r, GENERAL DEVELOPMENT UTILITIES, INC. ORIGINAL SHEET NO. 11.0 19.0 GUARANTEED REVENUE AGREEMENT. If authorized by the Commission pursuant to Order and under such terms and conditions as may be authorized under said Commission Order, Utility may establish a policy of requiring, as a condition precedent to service, that the contributor (developer) enter into a guaranteed revenue agreement, as defined in Commission Rule No. 25-10.121(12). 20.0 RESERVE CAPACITY CHARGE. Pursuant to Section 25-10.134 and 25-10.138, Florida Administrative Code, Utility may enter into an agreement with a contributor requiring contributor to pay a minimum guaranteed connection charge. If contributor wishes to insure that there will be available sufficient plant capa- city at various planned stages of development and if Utility agrees to reserve such capacity for contributor, the contributor will be required to pay applicable fixed costs including depreciation, property tax, insurance and inter- est costs on plant capacity reserved for the period of the reservation. 4. Harold E. Schmidt President r TIES, INC. EXHIBIT "A" ORIGINAL SI7LhT NO. 12.0 SCHEDULE OF DAILY RATED GALLOKAGE FOR VARIOUS OCCUPANCY Types of Building Usages Apartments....................................... Bars and Cocktail Lounges ........................ Boarding Schools (student and staff) ............. Bowling Alleys (toilet wastes only, per lane).... Country Clubs (per member) ....................... Day Schools (students and staff) ................. Drive-in Theatres (per car space) ................ Factories (with showers) .......................... Factories (no showers) ........................... Hospitals (with laundry) ......................... Hospitals (no laundry) ............................ Hotelsand Motels ................................ Laundromats ........ MobileHome Parks ................ ............... Movie Theatres, Auditoriums, Churches (per seat). NursingHomes .................................... Office Buildings ........................... ..... Public Institutions (other than those listed herein). •............................. Restaurants(perseat)........................... Single Family Residential Eater: 3/4" x 5/8" meter..... ................. 1" meter ............................... 1-1/2" meter ........................... Sewer:........ ................................. Townhouse Residences (3)....•.•....... ... Stadiums, Frontons, Ball Parks, etc. (per seat).. Stores (without kitchen wastes) ................... Speculative Buildings .:.......... :.............. 'Warehouses ....................................... (1) gpcd - gallons per capita per day 250 gpd S gpcd (1) 75 gpcd 100 gpd (2) 2S gpcd 10 gpcd 5 gpd 30 gpcd 10 gpd/100 sq. ft. 250 gpd/bed 200 gpd/bed 200 gpd/rm. or unit 225 gpd/wash. urachi 300 gpd/trailer 3 gpd 150 gpd/100 sq. st. 10 gpd/100 sq. ft. 75 gpcd 50 gpcd 350 gpd 600 gpd 1150 gpd 350 gpd 250 gpd 3 gpd 5 gpd/100 sq. ft. 30 gpd plus 10 gpd/ 100 sq. ft. 30 gpd plus 10 gpd/ 1000 sq. ft. j (2) GPD - gallons per day (3) Condominiums shall be rated in accordance with the type (apartments, townhouses, etc.) NOTE: Sewage gallonage refers to sanitary sewage flow on unit basis for average daily flow in gallons per day. 0 Harold E. Schmidt, President