Agenda 07/26/2011 Item #16C47/26/2011 Item 16.C.4.
EXECUTIVE SUMMARY
Recommendation that the Collier County Water -Sewer District administer a program to refund utility
impact fees and Allowance for Funds Prudently Invested fees, as applicable, for properties not
connected to the utility infrastructure and located in areas within the utility's service district
boundaries that are currently exempt from the imposition of such fees.
OBJECTIVE: That the Collier County Water -Sewer District (CCWSD) administer a program to refund utility
impact fees and Allowance for Funds Prudently Invested (AFPI) fees, as applicable, for properties not connected
to the utility infrastructure and located in areas within the utility's service district boundaries that are currently
exempt from the imposition of such fees.
CONSIDERATIONS: The CCWSD established geographic areas within its service district boundaries that are
excluded from the imposition of water and/or sewer impact fees until such a time that a connection to the water
and/or sewer system is anticipated within a ten -year period. These geographic areas are known as exempt areas. In
the event a connection to the CCWSD system becomes immediately available to a particular property within an
exempt area, water and/or sewer impact fees are immediately applicable to that property.
On an annual basis, staff reviews the existing exempt areas map to determine those geographic areas the CCWSD
plans to provide with potable water and/or sewer services within the next ten years. The intent of the review is to
identify areas that could be added or removed from the exempt areas currently identified in the Collier County
Consolidated Impact Fee Ordinance (CIFO), Ordinance No. 2001 -13, codified as Section 74 -303 (C) 1 in the
Code of Laws and Ordinances "Limitation on Applicability." Exempt areas are identified by using information
from the most current Annual Update and Inventory Report (AUIR); the CCWSD master plans; and the current
location of in- ground infrastructure.
Over time, the exempt status for any given area may change. This may result in instances where a property paid
water and/or sewer impact fees, and AFPI fees, and is in an area that was exempted subsequent to the payment(s)
and is not now nor currently anticipated within ten years to be connected to the utility infrastructure. New
building permits are not assessed utility impact fees nor AFPI fees in the exempt areas unless they are making a
connection.
The CCWSD is recommending the implementation of an exempt area refund program to equalize the utility
impact and AFPI fee commitment for all property owners within an exempt area. Through the program,
properties previously required to pay utility impact fees, now that there is no longer an expectation that a
connection to water and/or sewer services will be available within the next ten years, would be eligible for an
immediate refund of the fees paid.
Under the proposed exempt area refund program, the exempt status of the property serves as the triggering event
to initiate the review process. A refund is provided as long as the property meets the following requirements (1)
there is record of payment, (2) there is not record of previous refund, (3) a connection to the utility infrastructure
has not occurred, (4) the property lies within an area that is exempt per the current CIFO at the time the refund
process is initiated, and (5) as a prerequisite to refund of payment, the property owner must sign a "Letter of
Conditions" indicating acceptance of the offer of refund and understanding of the resultant rights and
responsibilities. The "Letter of Conditions" will also give the property owner the option to decline the offer of
refund, and will explain the rights and responsibilities resultant from selecting that option.
The CCWSD will not require the current property owner to request the refund, but rather, the refund will be
initiated as an automatic process. The obligation for payment of impact fees and credit for impact fees paid shall
run with the land (CIFO, Section 74 -202 (g)); therefore, a property owner entitled to a utility impact fee refund
under this program will be given the option to receive the refund or allow the credit for fees paid to continue to
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7/26/2011 Item 16.C.4.
run with the land. A property owner may choose to receive a refund at any time unless/until the area is no longer
exempt or the time has elapsed per the CCWSD Special Act. Once the fees are refunded, the property has the
same rights and responsibilities as any other property that never paid the fees.
The CCWSD will review all exempt areas and perform an audit of available information. Due to the volume, the
CCWSD will implement the historical review in phases with the total historical review targeted for completion
within 24 months from Board approval of the program.
Any impact fee refund to a single property that exceeds $25,000 will be brought to the Board for approval in
compliance with Section 74 -202 (h) (5) of the CIFO which states that "All reimbursement requests totaling
$25,000 or more, cannot be approved administratively and must be submitted to board of county commissioners."
The proposed refund program is to supplement the refund options available to property owners under the CIFO
and CCWSD Special Act.
FISCAL IMPACT: A preliminary review of one group of exempt areas (23 sections) resulted in an amount of
$29,425 eligible to be refunded among five properties, if the program is approved. If these figures are
extrapolated to reflect the full review of 158 sections, if all other factors remain consistent, the exempt area refund
program may have a potential estimated fiscal impact of $202,000 in eligible refunds. The total fiscal impact will
not be known until the full review of all 158 sections is complete. Utility impact fee and AFPI refunds will be
paid from the funds into which they were received: Water Impact Fees 411, Wastewater Impact Fees 413, and
AFPI Fees 408. if refunds exceed budgeted amounts available for refund in any given year, funds are available to
supplement in Reserves.
GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan.
LEGAL CONSIDERATIONS: This item is legally sufficient for Board approval and requires a majority vote. -
JBW-
RECOMMENDATION: That the Collier County Water -Sewer District administer a program to refund utility
impact fees and Allowance for Funds Prudently Invested fees, as applicable, for properties not connected to the
utility infrastructure and located in areas within the utility's service district boundaries that are currently exempt
from the imposition of such fees.
PREPARED BY: Gilbert Moncivaiz, Impact Fee Coordinator, Public Utilities Division
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.C.4.
7/26/2011 Item 16.C.4.
Item Summary: Recommendation that the Collier County Water -Sewer District administer
a program to refund utility impact fees and Allowance for Funds Prudently Invested fees, as
applicable, for properties not connected to the utility infrastructure and located in areas within
the utility's service district boundaries that are currently exempt from the imposition of such
fees.
Meeting Date: 7/26/2011
Prepared By
Name: Gilbert Moncivaiz
Title: Impact Fee Coordinator,Utilities Finance Operation
7/1/2011 11:49:35 AM
Submitted by
Title: Impact Fee Coordinator,Utilities Finance Operation
Name: Gilbert Moncivaiz
7/1/2011 11:49:37 AM
Approved By
Name: HapkeMargie
Title: VALUE MISSING
Date: 7 /1/2011 3:09:42 PM
Name: WidesTom
Title: Director - Operations Support - PUD,Utilities Fina
Date: 7 /4/2011 9:31:54 AM
Name: PattersonAmy
Title: Manager - Impact Fees & EDC,Business Management &
Date: 7/7/2011 11:27:01 AM
r Name: WhiteJennifer
Title: Assistant County Attorney,County Attorney
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Date: 7/7/2011 12:03:43 PM
Name: Yi1mazGeorge
Title: Director - Wastewater,Wastewater
Date: 7/12/2011 11:00:45 AM
7/26/2011 Item 16.C.4.
Name: WhiteJennifer
Title: Assistant County Attomey,County Attorney
Date: 7/12/2011 1:03:35 PM
Name: KlatzkowJeff
Title: County Attorney,
Date: 7 /12/2011 3:20.24 PM
Name: UsherSusan
Title: Management/Budget Analyst, Senior,Office of Manage
Date: 7/18/2011 11:43:59 AM
Name: IsacksonMark
Title: Director -Corp Financial and Mgmt Svs,CMO
Date: 7/18/2011 6:46:00 PM
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7/26/2011 Item 16.C.4.
Sections for Red under the Collier County
Exempt Area Refund Program
July 2011
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