ENGLEWOOD WATER DISTRICT MANDATORY WASTEWATER UTILITY CONNECTION POLICY

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1 ENGLEWOOD WATER DISTRICT MANDATORY WASTEWATER UTILITY CONNECTION POLICY RESOLUTION NO: C Section 1 Introduction 1.1 General The following (UCP) of the Englewood Water District (the District ) is applicable to all properties for which wastewater service is available within the District s service area, exclusive of service areas which are regulated by the Florida Public Service Commission and regulated or franchised by County government. Service is considered available as defined herein in Section 3. This policy will be applicable to both: Existing developments or dwelling units which currently have on-site wastewater facilities (e.g., septic tank) and service is not currently being provided by the District s wastewater utility system (discussed in Section 3); and Undeveloped or vacant parcels which will be developed in the future (discussed in Section 4). Section 2 - Definitions 2.1 Definitions For the purposes of this policy, the following definitions shall apply: 1. Abandon - shall mean the abandonment of an existing On-site Wastewater Treatment and Disposal System (OWTS) according to Chapter 64E-6, Section 64E-6.011, Florida Administrative Code, as amended and supplemented from time to time. 2. Applicant - shall mean the owner of the property, Residential Unit, or non-residential structure which has wastewater service available to the premises and is subject to the connection policies associated with the. 3. Available - means that the District s wastewater system is: i) capable of being connected to the plumbing of an establishment or residence; ii) is not under Florida Department of Environmental Protection moratorium; and iii) has adequate permitted wastewater treatment and disposal capacity to accept the sewage to be generated by the establishment or residence, all as meets the criteria as defined in Chapter (2), Florida Statutes, which may be modified from time to time and as of the date of the UCP, including the following 1 : 1 Florida Statutes 2000, Section Onsite sewage treatment and disposal. -1-

2 (1) For a residential subdivision lot, a single-family residence, or an establishment, any of which has an estimated sewage flow of 1,000 gallons per day or less, a gravity sewer line to maintain gravity flow from the property s drain to the sewer line, or a low pressure or vacuum sewage collection line in those areas approved for low pressure or vacuum sewage collection, exists in a public easement or right-of-way that abuts the property line of the lot, residence, or establishment. (2) For an establishment with an estimated sewage flow exceeding 1,000 gallons per day, a sewer line, force main, or lift station exists in a public easement or right-of-way that abuts the property of the establishment or is within 50 feet of the property line of the establishment as accessed via existing rights-of-way or easements. (3) For proposed residential subdivisions with more than 50 lots, for proposed commercial subdivisions with more than 5 lots, and for areas zoned or used for an industrial or manufacturing purpose or its equivalent, a sewerage system exists within one-fourth mile of the development as measured and accessed via existing easements or rights-of-way. (4) For repairs or modifications within areas zoned or used for an industrial or manufacturing purpose or its equivalent, a sewerage system exists within 500 feet of an establishment s or residence s sewer stub-out as measured and accessed via existing rights-of-way or easements. 4. Connection Period - means that period of time between the date of written notification by the District of the availability of service and the date of connection to the District s Wastewater Collection System, but not greater than 365 days after such notification, or 30 days after the failure of an OWTS. 5. Establishment - shall mean a building or buildings or non-residential structure other than a single-family or multi-family residence or unit. 6. Lot - means a parcel or tract of land described by reference to recorded plats or by metes and bounds, or the lease fractional part of subdivided lands having limited fixed boundaries or an assigned number, letter, or any other legal description by which it can be identified. 7. On-site wastewater treatment and disposal system (or OWTS) - means those systems or facilities as defined in Chapter (2), Florida Statutes, which may be modified from time to time and as of the date of the UCP, that contains a standard subsurface, filled, or mound drainfield system; an aerobic treatment unit; a graywater system tank; a laundry wastewater system tank; a septic tank; a grease interceptor; a dosing tank; a solids or effluent pump; a waterless, incinerating, or organic waste-composting toilet; or a sanitary pit privy that is installed or proposed to be installed beyond the building sewer on land of the owner or on other land to which the owner has the legal right to install a system, or a package sewage treatment facility that has entered into an agreement with the District to connect to the wastewater system once service is considered available as defined herein. -2-

3 8. Subdivision - means, for residential use, any tract or plot of land divided into two or more lots or parcels of which at least one is 1 acre or less in size for sale, lease, or rent. A subdivision for commercial or industrial use is any tract or plot of land divided into two or more lots or parcels of which at least one is 5 acres or less in size and which is for sale, lease, or rent. A subdivision shall be deemed to be proposed until such time as an application is submitted to the local government for subdivision approval or, in those areas where no local government subdivision approval is required, until such time as a plat of the subdivision is recorded. 2.2 All definitions contained in the District s Customer Rules and Regulations shall apply to the provisions of this. Section 3 - Service Available to Existing Developments 3.1 General Existing developments are defined as those Residential Units or non-residential structures where wastewater treatment and disposal service is provided through the utilization of a previously approved on-site wastewater treatment and disposal system (OWTS), such as a septic tank, or individual system package plant whereby the owners of such facility have entered into an agreement with the District to connect once wastewater service is deemed available. The use of the OWTS was previously approved by the Sarasota County/Charlotte County Health Department at the time of construction of the existing Residential Units or non-residential structures prior to the availability of central wastewater service. 3.2 Applicability The UCP will be applicable to all Residential Units and non-residential structures where sanitary wastewater service is available by the District but connection to the District s wastewater system has not occurred. Regardless of the effective date of this UCP, if written notification has been provided to an Applicant from the District requiring connection to the wastewater system, then the provisions of Section 3.3 shall apply based on the provisions of such written notification. 3.3 Connection All Residential Units and non-residential structures must connect to the District s wastewater collection system upon the earlier of the following conditions: 1. Within 30 days upon the failure of the OWTS; 2. As part of the construction of a modification to the Residential Unit or non-residential structure which would cause the existing OWTS to be insufficient to provide the necessary capacity to provide service, connection must be made prior to the issuance of the Certificate of Occupancy by the local government responsible for the permitting of such modification; or -3-

4 days after the date of mailing of written notification by the District of Service Availability. The District will provide written notification by first class mail to each property for which service is available. It is important to note that for purposes of this Policy, an existing, developed property will be considered connected to the central system at the expiration of the connection period or at the time of issuance of a Certificate of Occupancy per 3.3 (2) above; whether actual connection to the central system has been made or not, with all fees, charges (except monthly usage charges until physically connected) and obligations being incurred per this Policy and the current EWD Customer Rules and Regulations. 3.4 Customer Responsibility The owners of the existing Residential Units and non-residential structures will be responsible for all costs to connect to the District s central wastewater system. Such costs shall include, but are not limited to: i) the cost to construct the wastewater service lateral from the dwelling to the Point of Collection; and ii) abandonment and removal from service of the OWTS located on-site. The Point of Collection is defined as the point of connection between the District s wastewater collection lines and the facilities of the Customer necessary to connect the District s facilities to the Residential Unit or non-residential structure. The Point of Collection shall be located at the property line of the parcel which the dwelling for wastewater service is located or at some other location due to necessity as determined by the District. The District shall inspect the Customer connection at the Point of Collection for wastewater service prior to the provision of service. The District will not be responsible for any costs associated with the maintenance or replacement of the service lines or laterals located on the customer-side from the Point of Collection to the Residential Unit or non-residential structure. The Customer will be responsible for all rates, fees, charges, and deposits due to the District required for the provision of service as established from time to time by District Resolution and policy. The following is a summary of such rates, fees, charges and deposits to be paid for the provision of wastewater service. (a) Rates for Service: The monthly rates for wastewater service shall begin upon the earlier of: 1. Connection to the central wastewater system by the Customer as approved by the District; or days after the date of mailing of written notification by the District of Service Availability; and days after the failure of an OWTS. If after the sale of the property to a third party and written notification by the District of Service Availability has been previously provided to the prior owner, the remainder of the period from the date of the sale of the property to the end of the Connection Period determined as if the property was never sold. -4-

5 (b) If the Customer associated with an existing Residential Unit or non-residential structure does not pay for wastewater service after the expiration of the Connection Period, the District will collect such past due amounts in accordance to District Resolution, policy, and applicable law which could include, but not limited to, turn off of existing water service, removal of the water meter, and imposition of a property lien on parcel. Rates for service may be changed from time to time as determined and approved by the District with such changes being applicable to the existing Residential Unit or non-residential structure. (c) In addition to the payment of monthly rates for wastewater service, the Customer shall be responsible to the District for: i) the cost of installing the connection from the District wastewater collection line to the Point of Collection; and ii) any other charges for the connection to the District s system or the initiation of service as required by the District. The cost of installing the connection from the District wastewater collection line to the Point of Collection (the service lateral) will be included as a cost for determination of the Collection System Charge as discussed below. All charges and fees must be paid or financed prior to the provision of service. District charges and fees will be in addition to any costs incurred for the abandonment of the OWTS and the connection of the Residential Unit or non-residential structure to the Point of Collection which is the sole responsibility of the Customer. 3.5 Capital Charge (a) All new connections to the District s wastewater system must pay the prevailing System Plant Capacity Charge and Transmission System Charge (collectively, the Contribution Charge ) and corresponding Allowance for Funds Prudently Invested (AFPI) charges (collectively with the Contribution Charge, the Capital Charges ) for wastewater plant capacity in accordance with District Resolution or policy. The Capital Charge represents the fees charged to an Applicant for the allocable share of wastewater treatment and disposal capacity and the backbone transmission force main and gravity collection utility plant facilities or system constructed by the District for the benefit of the property (capacity allocation) and does not include the cost of the District collection system. The Capital Charge shall be determined based on District Resolution or policy and shall become due and payable at the time of Service Connection in accordance with the provisions per Section 3.3 above. The amount due shall be the prevailing Capital Charge rate, as adopted by District Resolution or policy, at the time when such fees are due and payable to the District. (b) The Applicant shall pay the Capital Charges assuming the following payment options: 1. The total amount due payable at the time of connection (see 3.3) to the wastewater system; or 2. The payment of not less than ten percent (10%) of the total amount due with the balance payable on an installment basis with level or constant payments which recognize: i) a payment term not to exceed sixty (60) monthly installments or other term as defined by the District associated with any financing terms related to such installments; and ii) the -5-

6 application of other costs associated with the financing of administering and collection of the installment payments from the Applicant as determined by the District. Notwithstanding the above, if an Applicant elects the installment method of Capital Charge payment, the Applicant can prepay the outstanding balance, including all interest payments and other financial charges due from such Applicant as determined by the District, at any time during the installment period. As a condition to ensure payment of the Capital Charge, the District will place a lien on the property for the amount of the Capital Charges due to the District. If the Applicant elects to finance the Capital Charges, the District may elect to utilize the Uniform Method of collection as provided by Chapter 197, Florida Statutes, as may be amended and supplemented from time to time, for the collection of installment payments of the fees, charges, or costs to be recovered from the Applicant pursuant to this section. (c) To the extent that the Applicant elects the installment method of capital charge payment and discontinues remittance of installments at any time during the payment process, the remaining balance will automatically become due and payable and the Applicant is subject to the District s policy for nonpayment for utility services, which will include application of a late payment penalty, discontinuance of service, and foreclosure of the lien. 3.6 Collection System Charge (a) In addition to the payment of the Capital Charges, the Applicant must pay the Collection System Charge. The Collection System Charge represents the allocable cost to the Applicant of the wastewater collection system, lift stations or vacuum stations, service laterals to the Point of Collection, and other attendant facilities necessary to collect wastewater from the Residential Unit or non-residential structure for delivery to the backbone transmission system (with the capital costs of such system being included as a component of the Capital Charges discussed previously). The Collection System Charge does not include any costs associated with the construction of the service line from the Point of Collection to the Applicant s premises. To the extent that the District financed the cost of the collection system extension and service to existing Residential Units or non-residential structures which results in service being available, the District will recover such costs for the extension of service from such properties. The District will compute a Collection System Charge that will represent a capital charge that shall become due and payable by the owners of the existing Residential Units or non-residential structure. Such charges will be in addition to the payment of the Capital Charge referenced in this UCP. (b) The District will impose a Collection System Charge based on the following extension parameters: 1. If the District financed the extension of the wastewater collection system by the establishment of a special assessment district or other similar benefit area and financed the extension predicated upon the receipt of specific charges or assessments applied to those -6-

7 parcels that benefit from such extension, the Collection System Charge will equate to the actual allocable capital cost for such benefit area as determined by the District; or 2. If wastewater collection facilities are available to existing Residential Units or nonresidential structures which were not initially contributed by a developer specifically to the District pursuant to the terms and conditions of a Developer s Agreement or in accordance with District policy and therefore were financed by the District, then the District will charge the prevailing Collection System Charge in accordance with District Resolution or policy. (c) The Applicant shall pay the Collection System Charge assuming the following payment options: 1. The total amount of the applicable Collection System Charge due is payable at the time of connection (see 3.3) to the wastewater system; 2. If the extension of the wastewater collection system was performed by the District whereby the District established a special assessment district or other similar benefit area and financed the extension by the issuance of special assessment bonds or other financing vehicle for the benefit of the properties, then payable on an installment basis recognizing: a) Level or constant payments which recognize a payment term of up to but not exceeding twenty (20) years or two hundred forty (240) monthly installments based on the terms of the District s financing requirements or policy as determined by the District; b) The application of the cost of financing, administration, billing and collection, and other costs and expenses directly related to the overall financing of the wastewater collection system improvements as determined by the District to allow for the full recovery of costs associated with the extension of service; and c) The District may elect to utilize the Uniform Method of Collection as provided by Chapter 197, Florida Statutes, as may be amended and supplemented from time to time, for the collection of installment payments of the fees, charges, or costs to be recovered from the Applicant pursuant to this section. 3. If the wastewater collection system was not extended as part of an established special assessment district or other similar benefit area but was financed by the District as part of general system operations and was not contributed to the District as part of a Developer Agreement, then payable on an installment basis recognizing: a) The payment of not less than ten percent (10%) of the Collection System Capital Charge as adopted by District Resolution or policy with the balance payable on an installment basis with level or constant payments which recognize a payment term not to exceed sixty (60) monthly installments; -7-

8 b) And the application of other costs of financing, administering and collection of the installment payments from the Applicant as determined by the District; and c) If the applicant elects to finance the Collection System Charge, the District may elect to utilize the Uniform Method of Collection as provided by Chapter 197, Florida Statutes, as may be amended and supplemented from time to time, for the collection of installment payments of the fees, charges, or costs to be recovered from the Applicant pursuant to this section. Notwithstanding the above, if an Applicant elects the installment method of Collection System Charge payment, the Applicant can prepay the outstanding balance, including all interest payments and other financial charges due from such Applicant as determined by the District, at any time during the installment period. As a condition to ensure payment of the Collection System Charge, the District will place a lien on the property for the amount of the Collection System Charge due to the District. (d) The Collection System Charge shall be determined by the District for each utility extension program service area whereby the program shall equate to a specific project which capital costs are financed by the District. The Collection System Charge shall include the cost of wastewater collection expenditures, including the cost of wastewater service lines from the wastewater collection lines to the Point of Collection to provide service to the existing Residential Unit or non-residential structure. The Collection System Charge shall not include the capital cost of wastewater backbone transmission, treatment, or disposal expenditures, which are a cost component recovered from the application of the Capital Charge. 3.7 Abandonment of On-site Facilities Upon connection by the Applicant to the District s wastewater system, the existing property must abandon its applicable OWTS package plant in accordance with local and state regulation. The Applicant will be responsible for the cost of abandonment of the OWTS that must be performed as a part of connection to the wastewater system. The District shall inspect the abandonment of the OWTS and no connection to the District s wastewater system will be allowed without proper inspection and approval by the District. 3.8 Owners of Multiple Platted Residential Parcels or Lots It is recognized that for those portions of the service area where extensions occur whereby vacant parcels have been platted and that there are owners of more than one (1) lot, the District will apply the Capital Charges and Collection System Charges relative to the anticipated potential characteristics associated with such service to such properties. For property owners that: i) have an existing Residential Unit on a platted parcel; and/or ii) a single vacant or undeveloped contiguous residentially zoned platted parcel, the District will not apply the connection charges to a contiguous vacant parcel if the owner of the property combines the parcels into a single property tax identification number. This will result in a single parcel for the particular Residential Unit. If service is extended by the District to a residential parcel and a property line -8-

9 from a previous plat is vacated, the District will make a determination of the amount of equivalent residential connections which could be served by such vacation recognizing the applicability of provisions discussed above. 3.9 Sale of Property (a) To the extent that an Applicant elects the installment method of payment of the Capital Charge and/or the Collection System Charge [not subject to collection pursuant to an assessment or other benefit district as referenced in Section 3.9(b)] and subsequently conveys, transfers, or refinances the property, the total amount of outstanding principal due on the Capital Charge and/or Collection System Charge will be due and payable in its entirety prior to providing service to the new customer. (b) If the payment of the Collection System Charge is being performed by an Applicant pursuant to the installment payment basis in an assessment or benefit district, the Applicant will not be required by the District to prepay the remaining balance of such assessment at the time the property is conveyed, transferred, or refinanced. The new owner will be required to pay the remainder of the Collection System Charge in accordance with the financing and payment policies associated with the assessment or benefit district and will not be allowed to modify any aspect of the payment requirements of the Collection System Charges due the District. (c) To the extent that service is available and the Applicant has elected not to connect to the wastewater system prior to the end of the designated connection period after service notification as prescribed in the UCP, or subsequently conveys or transfers the parcel, the new owner must connect to the wastewater system within the remainder of the designated connection period as dictated by the UCP. To the extent that service is available and the existing Residential Unit or non-residential structure has elected not to connect to the wastewater system after the expiration of the required connection period and subsequently conveys or transfers the parcel to a third party, the new customer must connect to the wastewater system within sixty (60) days. Section 4 - Undeveloped Lots 4.1 General An undeveloped unit is defined as a vacant platted parcel, which is included in the service area to which the District has provided wastewater service as part of its ongoing extension program. Since the property is undeveloped, no OWTS has been constructed or is available to serve the property. 4.2 Connection All Residential Units and non-residential structures subsequently constructed on the undeveloped parcel where service is available will be required to connect to the wastewater system. The development will not be permitted by the District to have an OWTS for wastewater treatment and disposal. The District will not provide the necessary documentation for the issuance of a certificate of occupancy by the applicable governmental agency for a development that has not -9-

10 connected to the existing wastewater service lines that were available at the time of building permit issue. 4.3 Customer / Developer Responsibility All applicable charges (Capital Charges, Collection System Charges, etc.) shall be paid by the Applicant at the time of execution of a service agreement with the District (Collection Systems financed by special assessment district or other similar benefit area are exempt for purposes of this paragraph). No Building Permit shall be issued by the applicable local governmental agency for this particular development unless both the Capital Charges and applicable Collection System Charges are paid in full in accordance with District policy. To the extent that a building permit is issued inadvertently by the applicable local governmental agency and the payment of the Capital Charges and Collection System Charges are considered outstanding by the District, the District will not provide the necessary documentation for the issuance of a certificate of occupancy by the applicable local governmental agency or for approval to operate new water/sewer systems by the Department of Environmental Protection until full payment of the Capital Charges and applicable Collection System Charges are received by the District from the Applicant. Section 5 - Parcels in Process of Development 5.1 General All applicable charges (Capital Charges, Collection System Charges, etc.) shall be paid by the Applicant at the time of execution of a service agreement with the District (Collection Systems financed by special assessment district or other similar benefit area are exempt for purposes of this paragraph). No Building Permit shall be issued by the applicable local governmental agency for this particular development unless both the Capital Charges and applicable Collection System Charges are paid in full in accordance with District policy. To the extent that a building permit is issued inadvertently by the applicable local governmental agency and the payment of the Capital Charges and Collection System Charges are considered outstanding by the District, the District will not provide the necessary documentation for the issuance of a certificate of occupancy by the applicable local governmental agency or for approval to operate new water/sewer systems by the Department of Environmental Protection until full payment of the Capital Charges and applicable Collection System Charges are received by the District from the Applicant. 5.2 Parcels in Process of Development (a) Parcels in the process of development are defined as those parcels where the Applicant has previously been issued a building permit from the applicable local governmental agency, that has not expired and a certificate of occupancy has not yet been issued by such applicable agency. With respect to the current development of a parcel, two specific development activities are recognized. These two development activities include: -10-

11 1. Development whereby no OWTS have been installed; and 2. Development whereby the OWTS have been installed. (b) The UCP for each of these development activities is different and are discussed below: 1. Developments With No On-site Waste Treatment Facilities Installed: Development in process which have not installed an OWTS, even if initially permitted by the applicable local governmental agency, shall not subsequently install such OWTS if service is or will be available at the time of substantial completion of such development. Section 4 of the UCP associated with undeveloped parcels or units as described above shall be applicable. To the extent that the applicable local governmental agency has issued a developer s agreement or building permit for a particular parcel and wastewater service subsequently becomes available prior to project initiation or substantial completion, any developer s agreement shall be considered by the District to be automatically revised on a mutual basis between both parties and connection to the District s wastewater system will be required. 2. Development with On-site Facilities Installed: Development in process that has installed an OWTS shall be considered as an existing development in accordance with the UCP. Therefore, the UCP associated with the existing development as described in Section 3 of the UCP shall be applicable as follows: 1. Connection: All development after the receipt of a certificate of occupancy shall have one (1) year to connect to the District s wastewater system unless a failure of the OWTS for wastewater service occurs, then connection will be required in accordance with Section Capital Charges: Capital Charges (previously defined as the Plant Capacity Charge and Transmission System Charge) and corresponding Allowance for Funds Prudently Invested (AFPI) charges (collectively, the Capital Charges ) will be due and payable on a basis consistent with service connection and will be in accordance with the prevailing rate as set by District Resolution or policy at the time of connection. The ability to pay the Capital Charges on an installment basis may be afforded to the Applicant pursuant to District policy as contained in Section Collection System Charge: The Collection System Charge will be due and payable on a basis consistent with service connection and will be in accordance with the rate established for the service area as set by the District as referenced in Section 3. The ability to pay the Collection System Charge on an installment basis will be afforded to the Applicant in accordance with the provisions of Section 3. All other provisions of the UCP for existing developments for the payment of the Collection System Charge shall be applicable. 4. Abandonment of On-site Facilities: The provisions of the responsibility of Abandoning the OWTS or other on-site facilities shall be the same as described for the existing development in Section

12 Section 6 - Exemptions 6.1 General This policy will not be applicable to those Applicants whom have the following characteristics: 1. Applicant Hardship Case: If the requirement for connection of a primary residential unit, which is classified as one (1) Equivalent Residential Connection, creates an economic hardship on the part of the property owner, and which has an OWTS which is functioning in accordance with State and local regulations, such property will be exempt from mandatory connection to the District s wastewater collection system during that time of economic hardship. Economic hardship is defined based on the eligibility criteria established by The Housing Corporation of Charlotte County (HCCC) for the administration of State Housing Initiative Partnership funds as it relates to homeowner rehabilitation assistance (which an Applicant must complete and submit to the HCCC annually for their review on behalf of the District). Economic Hardship shall be granted on an annual basis. Subsequent to the determination of the economic hardship status of an Applicant, if i) the OWTS fails or does not meet State and local regulations and must be upgraded or replaced; or ii) if the Applicant conveys or transfers the property, or the property is no longer Applicant s primary residence, the Applicant must connect to the District s wastewater collection system in accordance with Section 3 of the UCP. 2. Residential Acreage Exception: If a residential unit, which is classified as one (1) Equivalent Residential Connection, is located on a parcel of land of five (5) acres or more and has an OWTS which is functioning in accordance with State and local regulations, such property will be exempt from mandatory connection to the District s wastewater collection system. If the owner of such property has agreed by written notification to connect to the District s wastewater collection system or subdivides the property, then the provisions for connection as defined in Section 3.3 shall apply. All other classes of customers shall be subject to the UCP regardless of parcel size. 3. District Hardship Case: If the requirement for connection of a primary residence would create an economic hardship on behalf of the District, then the provisions of this UCP shall not apply. EFFECTIVE DATE: The of the Englewood Water District shall become effective January 1, Passed this 16th day of August 2001 (Resolution No A). Amended this 19 th day of December 2002 (Resolution No C). -12-

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