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Home My WebLink AboutDocumentation_Regular_Tab 13_3/10/2022Agenda Item #13. d Regular Council L STAFF MEMO Meeting: Regular Council - Mar 10 2022 Staff Contact: Matthew Hammond, Utilities Department: Utilities Director ORDINANCE NO. 08-22, FIRST READING, AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, FLORIDA, AMENDING THE VILLAGE OF TEQUESTA CODE OF ORDINANCES AT CHAPTER 74. UTILITIES, ARTICLE II. WATER SERVICE, DIVISION 2. RATES AND CHARGES. BY ADDING TWO ENTIRELY NEW SECTIONS 74-83. "CONNECTION FEE PAYMENT PLAN"; TO ALLOW A CONNECTION FEE FINANCING AGREEMENT BETWEEN A PROPERTY OWNER AND THE VILLAGE; AND 74-84. "VOLUNTARY ANNEXATION CONSENT"; TO REQUIRE PROPERTIES LOCATED OUTSIDE THE MUNICIPAL BOUNDARIES OF THE VILLAGE WHICH ARE SERVED BY THE VILLAGE'S WATER UTILITY, TO CONSENT TO VOLUNTARY ANNEXATION INTO THE VILLAGE WHEN SUCH ANNEXATION IS AVAILABLE; PROVIDING THAT EACH AND EVERY OTHER SECTION AND SUBSECTION OF CHAPTER 74. UTILITIES. SHALL REMAIN IN FULL FORCE AND EFFECT AS PREVIOUSLY ADOPTED; PROVIDING A CONFLICTS CLAUSE, A SEVERABILITY CLAUSE AND AUTHORITY TO CODIFY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. SUMMARY: Village of Tequesta serves potable water to residents and businesses within the Village municipal boundary, the Town of Jupiter Inlet Colony and portions of unincorporated Palm Beach and Martin Counties. Due to geographical and political boundaries, the portions of unincorporated Palm Beach County served potable water by the Village of Tequesta are enclosed in enclaves noncontiguous to the remainder of the County. Utility service is a tool used by other municipalities within Florida to encourage properties owners within enclaves to annex into the adjacent municipality for the benefit of the community as a whole. Proposed Ordinance 07-22 will require property owners within unincorporated Palm Beach County who desire to establish a new water service or improve their existing water service (e.g. upsize or downsize service size) to voluntarily annex into the Village of Tequesta or, if voluntary annexation is unavailable at the time, record an irrevocable consent to voluntary annexation when voluntary annexation becomes available. The Village will have the right to accept or not accept the voluntary annexations at its discretion. Additionally, Ordinance 07-22 will establish Section 74-83. — Connection Fee Payment Plan — to the Village Code allowing for single-family properties the option to finance water service connection fees over a period of up to 60 months (5 years) at an annual percentage rate which is the greater of one (1) percent over the 10-year Treasury Note three-month simple moving average at the time of application or five (5) percent. Financed Connection Fees would be billed monthly on the water service bill and be subject to the same payment terms and penalties. Standard templates for Voluntary Annexation and Connection Fee Financing will be prepared by the Village attorney and included with . Page 283 of 290 Agenda Item #13. This document and any attachments may be reproduced upon request in an alternative format by completing our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561-768-0443. BUDGETED AMOUNT: N/A AVAILABLE AMOUNT: N/A EXPENDITURE AMOUNT: N/A Additional Budgetary Information: Funding Source(s): N/A N/A POTENTIAL MOTION /DIRECTION REQUESTED: Approve Ordinance 08-22 Proposed Ordinance 08-22 - Voluntary Annexation Payment Plan Page 284 of 290 Agenda Item #13. ORDINANCE NO. 08-22 AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, FLORIDA, AMENDING THE VILLAGE OF TEQUESTA CODE OF ORDINANCES AT CHAPTER 74. UTILITIES, ARTICLE II. WATER SERVICE, DIVISION 2. RATES AND CHARGES. BY ADDING TWO ENTIRELY NEW SECTIONS 74-83. "CONNECTION FEE PAYMENT PLAN"; TO ALLOW A CONNECTION FEE FINANCING AGREEMENT BETWEEN A PROPERTY OWNER AND THE VILLAGE; AND 74-84. "VOLUNTARY ANNEXATION CONSENT"; TO REQUIRE PROPERTIES LOCATED OUTSIDE THE MUNICIPAL BOUNDARIES OF THE VILLAGE WHICH ARE SERVED BY THE VILLAGE'S WATER UTILITY, TO CONSENT TO VOLUNTARY ANNEXATION INTO THE VILLAGE WHEN SUCH ANNEXATION IS AVAILABLE; PROVIDING THAT EACH AND EVERY OTHER SECTION AND SUBSECTION OF CHAPTER 74. UTILITIES. SHALL REMAIN IN FULL FORCE AND EFFECT AS PREVIOUSLY ADOPTED; PROVIDING A CONFLICTS CLAUSE, A SEVERABILITY CLAUSE AND AUTHORITY TO CODIFY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. WHEREAS, the Village of Tequesta provides water utility service and desires to offer a payment plan to property owners who connect to the Village's water utility; and WHEREAS, the Village Council desires to amend the Village's code of ordinances to allow for such a payment plan for property owners connecting to the Village's water utility; and WHEREAS, the Village of Tequesta provides water utility service to properties located outside the municipal boundaries of the Village, and from time to time adds additional such properties to its water service area; and WHEREAS, the Village Council of the Village of Tequesta has determined that it is in the best interest of the Village of Tequesta to voluntarily annex those properties within the Village's water service area but outside the Village's municipal boundaries, when such voluntary annexation is available; and WHEREAS, the Village Council desires to amend the Village's code of ordinances to require such voluntary annexation. NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS: 1 Page 285 of 290 Agenda Item #13. Section 1: Chapter 74. Utilities. of the Code of Ordinances of the Village of Tequesta is hereby amended at Article 11. Water Service. by creating an entirely new Section 74-83. "Connection Fee Payment Plan" to allow for a connection fee financing agreement between a property owner and the Village; and an entirely new Section 74-84. "Voluntary Annexation Consent" to require properties located outside the municipal boundaries of the Village which are served by the Village's water utility, to consent to voluntary annexation into the Village when such annexation is available; providing that Section 74-83 and 74-84 shall hereafter read as follows: Sec. 74-83. — Connection Fee Payment Plan For single-family property owners desiring to connect to the Village's water system or for single- family property owners required to connect to the Village's water system, the property owner may make application for an installment plan, not -to -exceed sixty (60) months at an annual percentage rate which is the greater of one (1) percent over the 10-year Treasury Note three- month simple moving_ age at the time of application or five (5) percent, subject to the utility director's or designee's _ approval. The installment plan shall include those connection char _ e authorized by the utility director or designee. The property owner shall agree to all terms and conditions in the installment plan agreement. When the installment plan agreement is approved by the utility director or designee, the agreement shall be recorded in the official records for Palm Beach County and shall become a lien upon the property superior to all liens. titles and claims except federal and state taxes and shall remain in full force and effect until the installment plan is paid in full. During the term of the installment plan, the property owner must maintain all utility accounts for the subject property in his or her name. A new account for the property shall not be opened until the installment plan is paid in full. Failure to pay any amount due under the installment plan shall result in a late fee and may result in discontinuance of utility service to the property. Sec. 74-84 - Voluntary Annexation Consent. For those properties within unincorporated portions of Palm Beach County inside the Village's water service area, or which desire to join the Village's water service area, the Village shall require voluntary annexation or if voluntary annexation is unavailable at the time, recorded irrevocable consent to voluntary annexation which legally encumbers the subject property, when 2 Page 286 of 290 Agenda Item #13. voluntary annexation becomes available, as a condition precedent to providing or improving notable water service thereto. The Village is not required to annex property in order to provide water utility service. If the Village chooses to annex the subject property, annexation will be in accordance with Florida law and at a time convenient to the Village. Annexation will not be required as a condition of continuing existing service to existing customers, however voluntary annexation consent will be required for property owners who improve their potable water service (e..uupsize or downsize service size), and will be required as a condition precedent to serving new customers. Utility service to residential and commercial tenants shall not be provided until the property owner(s) comply with this section. The Village Council may grant exceptions to the requirements of this section. Section 2: Each and every other section and subsection of Chapter 74. Utilities. shall remain in full force and effect as previously enacted. Section 3: All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. Section 4: Should any Section or provision of this Ordinance or any portion thereof, any paragraph, sentence or word be declared by a Court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder of this Ordinance. Section 5: Specific authority is hereby granted to codify this Ordinance. Section 6: This Ordinance shall become effective immediately upon passage. 3 Page 287 of 290