[1. Call to Order]
[00:00:02]
CAN. GO AHEAD AND CALL TO ORDER THE MEETING OF THE WATER AND WASTEWATER STUDY. WE'LL START OUT WITH ROLL CALL. MR. MCEWEN, COUNCIL MEMBER SMITH HERE. COUNCIL MEMBER LARUSSO, PRESENT.
COUNCIL MEMBER. BASSETT. COUNCIL MEMBER. HANLEY. COUNCIL MEMBER. KENNEDY. VICE MAYOR.
[3. Presentation of water and sewer impact fee study and extraordinary circumstances.]
NEWMAN. MAYOR. ALFREY AND I AM HERE. ITEM THREE PRESENTATION OF WATER AND SEWER IMPACT FEE STUDY AND EXTRAORDINARY CIRCUMSTANCES. REPORTING ON THIS. MR. ROSS MCGANN. HOW ARE YOU DOING, SIR? GOOD EVENING, MAYOR AND COUNCIL. JUST LIKE LAST TIME, WE'RE GOING TO DO THE SAME GENERAL PRESENTATION, BUT MORE OF AN ABBREVIATED VERSION SINCE WE HAVE SEEN THIS INFORMATION, BUT FOR THE BENEFIT OF THE PUBLIC, WE WOULD LIKE TO JUST MAKE SURE THAT WE'VE GONE OVER AND MET THE REQUIREMENTS, AS REQUIRED BY STATUTE, TO DISCUSS THESE EXTRAORDINARY CIRCUMSTANCES. AND WITH THAT, I'M GOING TO GO AHEAD AND INTRODUCE TREVOR MCCARTHY. HE'S REF TELLUS FINANCIAL CONSULTANTS. HE'S OUR REPRESENTATIVE AND HE'S BEEN WORKING THROUGH US WITH THE PROCESS. THANKS, ROSS. TREVOR MCCARTHY AGAIN. FOR THE RECORD, I'M A MANAGER WITH REF TELLUS. I'M GOING TO GO THROUGH THE BRIEFLY GO THROUGH THE RESULTS OF THE IMPACT FEE STUDY AGAIN AND THEN ALSO TOUCH ON THE EXTRAORDINARY CIRCUMSTANCES THAT STAFF AND I BELIEVE, WARRANT A MORE EXPEDIENT IMPLEMENTATION OF THE IMPACT FEES AS ALLOWED BY FLORIDA STATUTE. SO WHAT WHAT OUR IMPACT FEES. THESE ARE FEES PAID BY NEW DEVELOPMENT THAT CREATE DEMAND FOR WATER AND WASTEWATER SYSTEM CAPACITY.THEY'RE FEES USED TO PAY FOR CAPITAL PROJECTS OR DEBT SERVICE COSTS ASSOCIATED WITH GROWTH RELATED FACILITIES. AND, YOU KNOW, REALLY, THESE FEES HELP AVOID BURDENING EXISTING RATEPAYERS WITH COSTS THAT ARE RELATED TO OR ASSOCIATED WITH NEW PRIVATE DEVELOPMENT. SO IT'S THAT CONCEPT OF GROWTH PAYING FOR GROWTH. WHEN WE DEVELOP IMPACT FEES FOR FOR WATER AND WASTEWATER UTILITIES, THERE ARE THREE MAJOR COMPONENTS. THOSE COMPONENTS ARE THE EXISTING AND FUTURE CAPITAL INVESTMENT IN THE FACILITIES, THE EXISTING AND PLANNED TREATMENT CAPACITY, AND THE LEVEL OF SERVICE WHICH IN THIS CASE IS 240 GALLONS PER DAY PER EQUIVALENT RESIDENTIAL CONNECTION. SO WE WE WE COMBINE THIS CALCULATION TO GET AN IMPACT FEE PER IRC. AND THAT'S WHAT WE'LL SHOW YOU ON THE NEXT SLIDE. THESE ARE THE PROPOSED IMPACT FEES COMPARED TO THE EXISTING IMPACT FEES. WE'RE RECOMMENDING A A WATER IMPACT FEE OF $2,755, WASTEWATER IMPACT FEE OF $4,165, FOR A TOTAL OF $6,920. AGAIN, THIS IS THIS WOULD BE A FEE FOR A DEVELOPER OF A OF A SINGLE FAMILY HOME. SO THIS IS ONE ERK OF CREATED A COMPARISON OF DIFFERENT DEVELOPMENT TYPES ON THE NEXT SLIDE HERE. SO YOU CAN GET SO YOU CAN GET AN UNDERSTANDING OF WHAT DIFFERENT DEVELOPMENTS MAY PAY. THIS IS HYPOTHETIC HYPOTHETICAL. I HAD TO GO OUT ON A LIMB ON SOME OF THESE ASSUMPTIONS. SO OBVIOUSLY A LOT OF THIS IS IS VERY SPECIFIC TO THE THE DIFFERENT TYPE OF DEVELOPMENT OCCURRING.
SINGLE FAMILY HOME IS RELATIVELY SIMPLE. AGAIN, THAT'S ONE ERK THEY WOULD PAY A DEVELOPER WOULD PAY $6,920. A RETAIL STORE. SO LET ME BACK UP A LITTLE BIT. SO FOR COMMERCIAL DEVELOPMENT, THE THE CITY USES WHAT I'LL, WHAT I'LL CALL A, A BUSINESS ATTRIBUTES APPROACH TO DETERMINE THE IRC'S ATTRIBUTABLE REALLY TRYING TO ESTIMATE DEMAND FOR THESE DIFFERENT DEVELOPMENT TYPES. SO FOR A FOR A RETAIL STORE, IT'S BASED ON THE NUMBER OF RESTROOMS THE RETAIL STORE HAS. SO IF THE RETAIL STORE HAS TWO RESTROOMS IT WOULD BE TWO URCS IF FEE OF $13,840 A RESTAURANT. THOSE IMPACT FEES ARE DETERMINED BASED ON THE NUMBER OF SEATS. SO AT 80 SEATS IT'D BE 80 SEATS OR $55,360. INDUSTRIAL BUILDINGS. THERE WAS A MENTION OF INDUSTRIAL BUILDINGS DURING THE LAST MEETING, SO WE'VE GOT TWO DIFFERENT CLASSIFICATIONS IN YOUR CODE, THOSE WITHOUT SHOWERS ON SITE AND THOSE WITH SHOWERS ON SITE. SO THEY HAVE A DIFFERENT IRC. BASIS PER. BUT BUT THEY'RE BOTH BASED ON EMPLOYEE. THE NUMBER OF EMPLOYEES EMPLOYED AT THAT INDUSTRIAL BUILDING. SO WITH THESE TWO EXAMPLES YOU GET IRC'S OF BETWEEN 4 AND 9.36 IRC'S. IF IT'S AN 80 EMPLOYEE INDUSTRIAL BUILDING AND YOU'D SEE A FEE OF 20,680 TO $64,771. I HAVE A QUESTION BEFORE YOU MOVE FORWARD. YES, SIR. I DON'T SEE MULTIFAMILY UNITS ON THIS CHART. SO MULTIFAMILY UNITS,
[00:05:06]
HOW WOULD THAT FIT INTO THESE FIVE CATEGORIES? YEAH, SURE. SO MULTIFAMILY UNITS PAY A FRACTION OF ONE IRC. AND SO A DEVELOPER WANTS TO COME IN AND DO 285 UNITS. WHAT'S IT GOING TO COST. RIGHT. SO IT WOULD BE AND I APOLOGIZE I DON'T HAVE A CALCULATOR ON ME, BUT IT'D BE 285 TIMES 0.583. SO IT'S IT'S A MULTIFAMILY UNIT IS 0.583 OF AN IRC. OKAY. SO IT'D BE 285. DO YOU HAVE THAT NUMBER OR DO I HAVE TO DO THE MATH? I'LL DO IT. THANK YOU. OKAY. 583. YES TIMES 6925 SPOKE OUT OF TURN, BUT THAT WOULD BE $1,149,792.60. SO TELL ME WHAT THAT MEANS IN IMPACT FEES. THAT'S THE THAT'S THE NUMBER. THAT'S THE NUMBER. THAT'S THE NUMBER OKAY. THANK YOU. OKAY. SO I ALSO WANT TO MENTION, YOU KNOW, AS FAR AS THE INCREASE IN THE, IN THE, IN THE FEE FOR A SINGLE FAMILY, FOR ONE IRC, THAT INCREASE IS $3,170. THE TYPICAL SINGLE FAMILY HOME IN MELBOURNE COST $375,000. THIS INCREASE IN THE FEE IS LESS THAN 1% OF. OF THE COST OF THAT TYPICAL SALE PRICE OF THOSE HOMES. I'M NOT GOING TO PRETEND TO KNOW WHAT IT COSTS TO DEVELOP, YOU KNOW, SOME OF THESE OTHER ITEMS THAT WE HAVE HERE. BUT I WOULD LOOK AT IT IN THAT CONTEXT. WHAT IS THE WHAT IS THE INCREASE OF THE FEE COMPARED TO, YOU KNOW, THE ACTUAL COST TO DEVELOP EACH ONE OF THESE ITEMS? I ALSO WANTED TO MENTION THAT THE THE THAT THE EFFECTIVE DATE IS CURRENTLY PROPOSED AS MARCH 9TH, 2026. THIS IS 90 DAYS AFTER THE SCHEDULED SECOND READING. THIS IS 90 DAYS BASED ON FLORIDA STATUTE. AND SO AS FAR AS WHO WOULD BE SUBJECT TO THE NEW IMPACT FEES, IT WOULD BE THOSE ISSUED A BUILDING PERMIT ON OR AFTER THAT EFFECTIVE DATE. SO TO GET THE CURRENT FEE YOU HAVE UNTIL BEFORE MARCH 9TH TO SUBMIT A BUILDING PERMIT. OTHERWISE YOU'RE SUBJECT TO THE NEW FEES. AND NEXT WE HAVE A COMPARISON OF IMPACT FEES AMONG OTHER REGIONAL UTILITIES. AND YOU CAN SEE OUR SURVEY AVERAGE IS $4,970. AND WE ARE PROPOSING COMBINED IMPACT FEES OF $6,920 FOR THE CITY OF MELBOURNE.THERE'S A LOT OF DIFFERENT REASONS WHY IMPACT FEES DIFFER AMONG UTILITIES, POPULATION DENSITY, DIFFERENT TREATMENT TYPES. IS THE COMMUNITY IN A GROWTH PHASE VERSUS A MATURE PHASE? SO LOTS OF DIFFERENT REASONS WHY FEES DIFFER. WE DON'T KNOW WHEN EACH ONE OF THESE UTILITIES HAVE HAVE UPDATED THEIR FEES. HOWEVER, I DO KNOW THAT SAINT LUCIE COUNTY AND PORT SAINT LUCIE ARE SOME OF THE MOST RECENT FEES HERE, AND THEY ARE AT THE FAR RIGHT, NOT SUGGESTING THAT OTHERS WILL BE AT THAT LEVEL, BUT I DO KNOW THAT THOSE ARE RELATIVELY RECENT. SOME FEES THAT WE DO KNOW THAT HAVE BEEN ADOPTED STATEWIDE OUTSIDE OF THE REGION ARE SHOWN HERE ON THIS NEXT GRAPHIC. AND ON A COMBINED BASIS, THESE FEES AVERAGE ABOUT $9,000 PER IRRC SO ALMOST 2000 MORE THAN $2,000 OVER WHERE WE'RE PROPOSING TAKING MELBOURNE'S FEE ON A COMBINED BASIS. WATER AND WASTEWATER. SO NEXT I'D LIKE TO DISCUSS IMPLEMENTATION AND THE PHASING REQUIREMENTS. SO FLORIDA STATUTE HAS HAS NEW PHASING LIMITATIONS ON INCREASING IMPACT FEES. WE ARE PROPOSING TAKING THESE IMPACT. WE'RE PRO EXCUSE ME WE ARE PROPOSING INCREASING BOTH THE WATER AND WASTEWATER IMPACT FEES OVER 50%, WHICH ACCORDING TO FLORIDA STATUTE MEANS THAT YOU'D HAVE TO IMPLEMENT NO MORE THAN A 50% INCREASE AND THAT WOULD HAVE TO BE PHASED IN OVER FOUR YEARS. HOWEVER, THEY ALSO ALLOW FOR THE CITY TO MAKE A FINDING OF EXTRAORDINARY CIRCUMSTANCES. AND THAT'S WHAT WE'RE GOING TO ASK. THAT'S WHAT WE'RE ASKING YOU FOR. AND WORKING WITH STAFF, WE'VE IDENTIFIED SEVERAL FACTORS WE BELIEVE TO BE EXTRAORDINARY CIRCUMSTANCES THAT NECESSITATE A MORE EXPEDIENT INCREASE. AND I'M GOING TO TAKE YOU THROUGH THOSE SEVERAL FACTORS. NOW. QUESTION.
YES. THANK YOU. THE FOUR YEAR IMPLEMENT IMPLEMENTATION IS THAT IS THAT QUARTERED? I MEAN,
[00:10:05]
SO 25%, 25%, 25%, IT WOULD BE DOLLAR AMOUNTS IS TYPICALLY HOW I SEE IT DONE. AND YEAH, IT'D BE IT'D BE FOUR EQUAL INSTALLMENTS DOLLAR AMOUNT INCREASES. SO IT'S NOT JUST A HUGE DUMP THEN. CORRECT. CORRECT. THANK YOU. SO SO THAT WOULD BE THE THAT WOULD BE THE STANDARD PROCESS WHERE WE'RE ASKING WE'RE ASKING COUNCIL WHETHER OR NOT THERE ARE EXTRAORDINARY CIRCUMSTANCES TO BYPASS THAT USUAL PHASE IN PROCESS TO IMPLEMENT.UNDERSTAND. OKAY. BUT I DIDN'T KNOW WHERE HE WAS GOING WITH WITH THE FOUR YEAR SO IMPLEMENTATION. SO I JUST WANTED TO KNOW IF THAT FOUR YEAR IF THAT IF A DEVELOPER WAS PART OF THAT, IF THERE'S A QUARTER QUARTER, QUARTER, QUARTER, THAT'S ALL. MAYBE I'M OFF BASE ON ON MY QUESTION, BUT THAT'S WHAT POPPED INTO MY HEAD. OKAY. PLEASE. THANK YOU, THANK YOU. SO ON THE EXTRAORDINARY CIRCUMSTANCES, THE FIRST FACTOR IS SIGNIFICANT INFLATION, THE COST OF CONSTRUCTION. AN EXAMPLE OF THIS IS THE THE WATER PLANT CAPACITY HAS INCREASED. THE NEW WATER PLANT CAPACITY HAS INCREASED SIGNIFICANTLY FROM TO TO ALMOST $17 PER GALLON COMPARED COMPARED TO $5.87 PER GALLON. THIS IS JUST ONE EXAMPLE. FINAL BIDS HAVE SIGNIFICANTLY EXCEEDED INITIAL ESTIMATES. MANY OF THESE ARE WELL OVER 70% INCREASES IN COST, AND THIS IS SEEN IN THE IN THE CURRENT CIP OF FOR THE UTILITY OF OVER $500 MILLION, COMPARED TO $300 MILLION IN 2023. SO WE'RE SEEING SIGNIFICANT INCREASES IN INFLATION FOR CONSTRUCTION COSTS. AND NEXT IS CUSTOMER GROWTH. WE'VE GOT INFORMATION THAT SUGGESTS OVER 5000 NEW RESIDENTIAL UNITS OF GROWTH MAY CONNECT OVER THE NEXT FIVE YEARS. THIS IS THREE TIMES THE CITY'S TEN YEAR HISTORICAL GROWTH RATE IN EQUIVALENT RESIDENTIAL CONNECTIONS. SO NEXT, THE THE THE IMPACT FEES ARE A PLEDGED REVENUE FOR THE REPAYMENT OF THE UTILITY REVENUE BONDS. AND THE CITY PLANS TO ISSUE ABOUT $290 MILLION IN DEBT OVER THE NEXT FIVE YEARS TO FUND MANY OF THESE GROWTH RELATED CAPITAL PROJECTS. SO THESE IMPACT FEES OFFSET WHAT OTHERWISE WOULD BE FUNDED FROM EXISTING CUSTOMERS.
AND AND HISTORICALLY, THE CITY HAS USED THE IMPACT FEES, THE WATER AND WASTEWATER IMPACT FEES TO PAY FOR THAT EXPANSION EXPANSION RELATED DEBT ON AN ANNUAL BASIS, WHICH WE THINK IS A IS A GOOD USE OF THOSE IMPACT FEES. AND THIS THIS NEXT CHART HERE IS JUST A CALCULATION OF THE OPPORTUNITY COST ASSOCIATED WITH IF YOU PHASED IN THE FEES VERSUS IF YOU IMPLEMENT THEM AT THE FULL FEE LEVEL ON APRIL 1ST. AND THAT OVER FIVE YEARS IS WORTH ABOUT $9.8 MILLION. SO IN OTHER WORDS, A PHASED A PHASED IN APPROACH WOULD SHIFT APPROXIMATELY $10 MILLION FROM DEVELOPMENT TO EXISTING RATEPAYERS. SO FOR THESE REASONS, WE'RE RECOMMENDING THAT THE CITY COUNCIL ADOPT THE PROPOSED WATER AND WASTEWATER IMPACT FEES WITH A FINDING OF EXTRAORDINARY CIRCUMSTANCES. IF IF IT'S NOT IN AGREEMENT ABOUT THE EXTRAORDINARY CIRCUMSTANCES, AND YOU DON'T MAKE A FINDING OF THAT, YOU CAN ADOPT THE FEES UP TO 50% AND IMPLEMENT THEM OVER FOUR YEARS. HOWEVER, WE DO RECOMMEND AND I RECOMMEND THE OF A FINDING OF EXTRAORDINARY CIRCUMSTANCES. AND THE FEES ARE PROPOSED TO BECOME EFFECTIVE 90 DAYS FROM THE ADOPTION OF THE ORDINANCE OR ON MARCH 9TH, 2026. AND THAT CONCLUDES MY PRESENTATION, AND I'M HAPPY TO TAKE ANY QUESTIONS, ANY ANY QUESTIONS, MAYOR. GOOD SIR. SO I HAVE A PROCESS QUESTION MORE THAN ANYTHING ELSE. SO THE AND THEN ALSO IF YOU COULD GO BACK TO THAT CHART THAT HAS WHERE WE'RE AT, WHERE THE PROPOSED IS AND ALL THAT STUFF, THAT'LL HELP TOO. SO I'LL START WITH THE, YOU KNOW, I THINK HE PASSED IT. YEAH I THINK IT'S THAT ONE. RIGHT. YEAH. SO SO YOU HAVE YOUR PROPOSED HERE AND THE CURRENT PROCESS IS IT'S ONLY 25 TO 50% IS WHAT WE CAN DO. AND THIS ALLOWS US TO EXCEED THAT. THAT'S MY UNDERSTANDING OF WHAT'S GOING ON. CORRECT. YEAH. YES. AND SO WHAT WOULD IT BE IF WE WENT TO THE MAXIMUM AMOUNT I DIDN'T SEE ON HERE? IF WE HAD THE TWO STEP IT WHAT THAT WOULD LOOK LIKE OR SEVERAL STEP LIKE, WOULD THE MAXIMUM AMOUNT BE IF IT'S 50% MORE IT WOULD BE WHAT, 1003, 70, 50. IT'S LIKE WHAT, 1007 50 OR SOMETHING LIKE THAT ADDITIONAL EACH YEAR, GIVE OR TAKE. DOES THAT SOUND ABOUT RIGHT? SORRY.
ONE SECOND. AND AGAIN I SHOULD HAVE BROUGHT MY CALCULATOR I APOLOGIZE. YEP. YOU'RE FINE.
[00:15:04]
I'M JUST TRYING TO FIGURE OUT IF IT WOULD PUT US. TO WHAT? TO WHAT DEGREE? BECAUSE WOULD THIS BE A TWO YEAR THING TO GET TO THAT AMOUNT OR IS IT A ONE TIME? OH YEAH. THANK YOU. I HAVE THE CALCULATOR I APPRECIATE IT. HERE ON THE SECOND ROW HERE. THANK YOU RUSS. ON THE SECOND ROW HERE YOU HAVE THE INCREASES IN THE FEE. THIS IS THE COMBINED FEE AT A PHASED IN APPROACH. SO IT WOULD BE 4000 TO 18 AND WE WOULDN'T BE ABLE. SO WE'D HAVE TO DO IT FOR I'M JUST TRYING TO SEE IN COMPARABLE TO OUR, TO OUR NEIGHBORING COMMUNITIES. JUST SO TO GIVE YOU AN IDEA OF WHERE IT'S AT. SO IT'S 4200, 4000, 600, 5000, 156. AND SO IF WE GO BACK TO THE NEXT ONE, SO FROM THAT CHART, YEAR FOUR WOULD BE 5625. THAT'S WHERE IT WOULD CAP AT. BUT SO BASICALLY IT WOULD TAKE THREE YEARS TO GET OVER THE AVERAGE SURVEY. THAT'S THAT'S WHAT I'M TRYING TO GET. HOW MANY YEARS WOULD IT TAKE US TO GET OVER THE AVERAGE. AND THEN HOW MANY WOULD IT TAKE US TO GET TO WHERE IT'S AT NOW BASICALLY IS THE IS THE IDEAL AND WHERE DOES THAT COMPARE? BECAUSE APPARENTLY IF WE DID IT IN PHASES, WE'RE ONLY GOING TO GET UP TO AROUND WHERE BREVARD COUNTY CURRENTLY IS AT, GIVE OR TAKE. THIS IS ALL ROUGH NUMBERS.THE NEXT YEAR WE'RE GOING TO GET UP AROUND THE FORT PIERCE UTILITIES AUTHORITY. LET'S SAY THIRD YEAR WILL BE AROUND CITY OF ORMOND BEACH, AND THEN FOURTH YEAR WE GET TO WHERE WE'RE AT. THAT'S RIGHT. WELL NO. NO. WELL, BUT I'M SAYING COMPARATIVELY TO WHERE WE'RE AT.
SO THAT'S THAT'S THE DEAL THERE. NOW NUMBER TWO, MY QUESTION IS IF THE WAY THAT THIS PROCESS WORKS, IS IT JUST A HEARING AND A MAJORITY VOTE, OR DO YOU NEED BASICALLY LIKE TWO THIRDS? I DON'T RECALL WHAT THE VOTING THRESHOLD IS FOR THIS PARTICULAR MOTION. SO AND AND DOESN'T HAVE TO BE AT THIS WORKSHOP BECAUSE WORKSHOPS. BUT BUT FOR THE ORDINANCE THAT'S ON THE REGULAR AGENDA SCHEDULED FOR THIS EVENING, APPROVAL WOULD REQUIRE A TWO THIRDS MAJORITY VOTE. AND IF FOR WHATEVER REASON, WE WEREN'T TAKING THIS ACTION TONIGHT AND ON DECEMBER 9TH, WE'D BE INTO 2026 AND WE'D BE AT A UNANIMOUS VOTE EVEN TO GO FOR THE 50% INCREASE, I BELIEVE, BEYOND JANUARY 1ST. YEAH, YEAH, I THINK SO. RIGHT. AND THEN ALSO REMEMBER THAT IN IN EITHER SCENARIO THAT WE'RE TALKING ABOUT, WHETHER IT'S FINDING OF EXTRAORDINARY CIRCUMSTANCES AND AN INCREASE BEYOND THIS 50% MAX OR FOR INTO JANUARY. AND WE'RE DOING A PHASED IN APPROACH AT AT THE 50% MAX. THERE WOULD THEN BE A CAP ON US ON OUR ABILITY TO DO FUTURE IMPACT FEES. RIGHT. I THINK IT'S A 4 OR 5 YEAR FOR A FOR A FOUR YEAR CAP ON THAT. RIGHT. AND SO WE'D BE WE'D BE WAITING ANOTHER FOUR YEARS TO BE IN THE NEXT CYCLE.
SO SO WHETHER WE ADOPT AT 20, 69, 20 PER ERC TONIGHT AND ON THE NINTH, THAT'S GOING TO GET LOCKED IN FOR THE FOR THE NEXT FOUR YEARS. IF I MAY CUT IN. WELL, ACTUALLY, IF YOU DON'T MIND, I JUST HAVE A QUICK QUESTION. SO CAN YOU GO BACK AGAIN TO WHAT YOU JUST SAID ABOUT IT NOT BEING, IF WE DON'T DO THIS TONIGHT, WE'RE GOING TO BE SCREWED IN 2020. PART OF THE REASON THAT THAT WE EVEN ASKED COUNCIL TO HOLD THESE WORKSHOPS WAS WE HAD REALIZED THAT THERE IS AN IMPENDING CHANGE IN THE LAW IN IN CHAPTER 163 RELATING TO IMPACT FEES AND AS AS OF JANUARY 1ST, 2026, OUR EFFECTIVELY OUR OPPORTUNITY TO EVEN CONSIDER THESE EXTRAORDINARY CIRCUMSTANCES TO GO ABOVE 50% IS GOING TO BE LIMITED. TOGETHER WITH IT WOULD REQUIRE A UNANIMOUS VOTE AND SO ON AND SO FORTH. AND SO WE RECOGNIZE THERE'S A VERY SMALL WINDOW OF TIME THAT WE CURRENTLY HAVE TO CONSIDER. YOU KNOW, WE HAVE AN INCREASED RATE SINCE 2012. THERE ARE ALL THESE OTHER, YOU KNOW, THESE THESE INFLATIONARY COSTS, THESE GROWTH THINGS THAT WE'RE EXPECTING ARE, ARE PUTTING FINANCIAL BURDEN ON, YOU KNOW, GROWTH FACTORS FOR WATER AND WASTEWATER PRODUCTION AND TREATMENT. AND SO IF IF COUNCIL FINDS IT APPROPRIATE, WE HAVE BEFORE JANUARY 1ST, 2026 TO FIND THESE EXTRAORDINARY CIRCUMSTANCES AND BY TWO THIRDS VOTE, APPROVE AN INCREASE BEYOND THOSE THOSE PHASE IN LIMITATIONS TO INCREASE THESE IMPACT FEES TO THE NUMBER THAT'S, THAT'S BEING PROPOSED FOR FOR COMBINED IF WE GO IF WE IF WE DO NOT TAKE THAT ACTION TONIGHT IN DECEMBER 9TH, WE'LL BE INTO 2026. AND OUR OPTIONS WILL BE WILL BE MORE LIMITED IN IN HOW WE CAN INCREASE OVER TIME AND WHAT THE THE APPROVAL PROCESS WILL LOOK FOR LIKE FOR THAT. BUT BUT AGAIN RIGHT. AND
[00:20:04]
I THINK THAT THAT OTHER CHART TREVOR IF YOU GO BACK TO THE OTHER SLIDE. NO I'M SORRY THE THE ONE THAT SHOWED THE PHASE IN. YEAH. THE RIGHT. IF WE IF WE IF WE ARE NOT TAKING ACTION PURSUANT TO BASICALLY THAT THIRD THIRD ROW. RIGHT. THE 6900 NUMBER. AND WE'RE LOOKING MORE AT THE, THE SECOND ROW. THAT'S THAT THOSE THOSE ARE BASICALLY OUR IF IF COUNCIL'S IF COUNCIL'S NOT INTERESTED IN ROW THREE THE MAXIMUM WE'D BE EVEN ABLE TO TO CONSIDER IN THE FUTURE IS GOING TO BE THAT SECOND ROW. MY MY STATING THAT CORRECTLY. YEAH THAT'S RIGHT THANKS ADAM. OF COURSE. AND THEN TO FOLLOW UP ON THAT. SO AND THAT'S WHY I WANT TO MAKE SURE AGAIN I THINK IT UNDERLIES THE, THE, THE URGENCY OF THIS ADAM, WHICH IS WOULD WE WOULD WE IF WE DON'T DO THIS, COULD WE NOT. I WANT, I WANT TO UNDERSTAND HOW WE'RE LOCKED IN, SO TO SPEAK, BECAUSE WOULD WE NOT BE ABLE TO DO 50% TODAY INSTEAD OF THE NOT GOING BEYOND THAT, THAT YOU WOULD. OKAY, OKAY. IT SOUNDED THIS IS I WANTED TO CONFIRM IT SOUNDED LIKE WE COULDN'T DO THE 50% TODAY OR IN DECEMBER. IF YOU IF YOU DID THE 50% TODAY, IT WOULD STILL BE THE TWO THIRDS VOTE. IF WE'RE DOING THAT IN 2026, I BELIEVE IT WOULD BE A UNANIMOUS VOTE. YEAH. RIGHT. RIGHT, RIGHT. THAT THAT WOULD BE THAT WOULD BE THE CHANGE IN THE LAW AS TO THE PHASE AS TO THE PHASE IN APPROACH. SO WE HAVE SO FOR THE PHASE IN, WE'D STILL HAVE TO DO A UNANIMOUS VOTE. THAT'S WHAT YOU'RE SAYING. THAT'S WHAT I'M TRYING TO CONFIRM HERE. BECAUSE THAT'S NOT NOT IF NOT IF YOU WERE GIVING US DIRECTION TO AGAIN AT THE REGULAR MEETING FOR THE FOR THE ORDINANCE THAT'S PROPOSING THE WATER. IF, IF THERE WAS DIRECTION OF WE DON'T LIKE THIS ORDINANCE, WE WANT TO MODIFY IT TO DO THE FOUR YEAR PHASE IN APPROACH.THAT ONE TODAY AND DECEMBER 9TH, I'M ALMOST SURE. AND I CAN I CAN DOUBLE CHECK, BUT I'M ALMOST SURE THAT'S STILL A2A TWO THIRDS VOTE AS OF TODAY. WHEREAS IF WE GO INTO JANUARY AND CONSIDER THAT 50% PHASE IN, IT WOULD BE A UNANIMOUS VOTE, THAT THAT'S A CHANGE. CHANGE IN THE LAW FROM THE FROM THE STATE STATUTE, EFFECTIVE JANUARY 1ST. SO AND I'M JUST TRYING TO MAKE SURE THAT IT'S TALLAHASSEE RULE. YEAH. AND I'M JUST TRYING TO MAKE SURE THAT THE PHASE I WAS GETTING A LITTLE CROSSED OVER WHEN YOU AND COUNCILMAN LARUSSO WERE TALKING BECAUSE IT SOUNDED AS THOUGH WE WERE GOING TO LOSE THE OPPORTUNITY TO EVEN DO OUR PHASED IN PROGRAM. AND THAT'S WHAT I WANTED TO MAKE SURE, BECAUSE I WAS LIKE, I'M CONSIDERING BOTH EQUALLY, AND I WANT TO MAKE SURE WE'RE NOT LOSING THAT OPPORTUNITY IN ANY WAY, SHAPE OR FORM. DON'T LOSE THE OPPORTUNITY. BUT THE THE REQUIREMENTS FOR APPROVAL OF EVEN THE PHASE IN MAY VERY WELL CHANGE. BY DANIEL. I MEAN, FOR ALL INTENTS AND PURPOSES, THEY'RE TRYING TO MAKE IT MORE DIFFICULT TO RAISE IMPACT FEES. I GET THAT A GOOD MAN. SO WHAT KEEPS RESONATING WITH ME IS THIS BOTTOM ROW. HERE IS THE MONEY THAT WE'D BE LOSING IF WE DON'T DO THIS. AND WHERE IS THAT GOING TO COME FROM? AND THAT'S WHAT KEEPS RESONATING WITH ME, BECAUSE THAT'S GOING TO GO TO OUR RESIDENTS. SO THE GENERAL WATER. RIGHT? RIGHT. SO I'M IN FULL SUPPORT OF I'M VOTING FOR THIS TONIGHT. YEAH. OKAY. HOLD ON. YOU HAD SOMETHING. I'M SORRY. ANYBODY ELSE? NO, MA'AM. I'M GOOD. OKAY. SO. ALL RIGHT, I'M MOVING ON TO ITEM FOUR. PUBLIC COMMENTS. WE
[5. Discussion of extraordinary circumstances necessitating the need to exceed the phase-in limitations for water and sewer impact fees.]
HAVE NO PUBLIC COMMENTS. I'LL MOVE TO A5. GOOD, GOOD. FORGIVE ME. I THINK WE ALSO DID FIVE ESSENTIALLY HERE UNDER THREE. YEAH. THAT'S WHAT IT SOUNDED LIKE. YEAH. SO WE HAVE ANYTHING LEFT ON THAT? NO. AT THIS POINT THERE IS NO ACTION BEING REQUESTED OF COUNCIL. THIS IS THE INFORMATIVE PORTION OF WHAT STATUTE REQUIRES FOR US TO EVEN CONSIDER THIS WHEN WE REACH THE IMPACT FEE ITEM LATER THIS EVENING WILL BE WHEN WE HAVE TO GO THROUGH THE MORE FORMALIZED PROCESS OF READING THE ORDINANCE AND ANY OTHER CONSIDERATIONS COUNCIL WANTS TO HAVE ON THAT. THAT'S INCLUDED TONIGHT, RIGHT? THAT'LL BE TONIGHT. FIRST READING OKAY.ANYTHING ELSE. SO WE'RE GOOD OKAY THEN IT'S GOING TO BE ITEM SIX ADJOURNMENT. SO WE'LL ADJOURN AND WE'LL WE'LL START WITH TEN MINUTES. NO THE THE
* This transcript was compiled from uncorrected Closed Captioning.