Fort Walton Beach Council agenda — 06-26-12 regular — reading text

0r e yy k k cr E9!E9!!. !. g.g. 22 kk- - kk rSkrSk \ \ii kk 77|77| kk mksmks k\  14. 3 City ENGINEERING Council of Fort Walton Beach 0 To: & UTILITY SERVICES MEMORANDUM Michael D. Beedie, Acting City Manager From: Michael Beedie, Engineering & Utility Services Director Date: June 26, 2012 Subject: Okaloosa County School Board MOA 1. BACKGROUND: 1. 1. In August 2008, City Council adopted Ordinance No. 1768 to establish a Stormwater Management Utility. Resolution 2008 -34 established the user fee of $ 3. 00 per Equivalent Residential Unit ( ERU). The Stormwater Management Utility began operating on October 1, 2008. 1. 2. In March 2010, City Council adopted Ordinance No. 1821 to revise the definitions of Residential and Commercial properties and to revise the basis for determining the Equivalent Residential Unit ( ERU) from 2, 700 square feet of impervious surface to 3, 200 square feet of impervious surface. 1. 3. In February 2012, City Council adopted Ordinance No. 1859 to revise the definition of the properties that are exempt from the Stormwater Utility user fees. 2. DISCUSSION: 2. 1. Section 10. 521. 04 of the Code of Ordinances, titled Stormwater Management Utility Exemptions, defines the following properties as being exempt from the Stormwater Utility user fees: " Public road rights -of w- ays, vacant lots or parcels, and undeveloped lots or parcels shall be classified as exempt from stormwater utility user fees. Governmental entities which by Chapter 553. 80 of the Florida Statutes are not subject to the City' s Stormwater Management requirements in the Land Development Code shall also be exempt from stormwater utility user fees ". 2. 2. The Okaloosa County School Board and other State agencies are not subject to the Land Development Code regulations, and are therefore, not subject to the Stormwater Utility user fees at the present time. 2. 3. A Memorandum of Agreement has been prepared by the School Board' s attorney in order to resolve the outstanding issue of paid and non -paid Stormwater Utility user fees. 3. FINANCIAL INFORMATION: 3. 1. Between October 2008 and October 2009, the School Board paid a total of $52,245. 25 to the City for the Stormwater Utility user fees. Starting in November 2009, the School Board ceased payment of the Stormwater Utility user fees up to the adoption of Ordinance 1859 based on ongoing lawsuits throughout the State of Florida concerning the validity of Stormwater Utility user fees towards School Boards. Packet Py..169  F143 City Council of Fort Walton Beach 0 To: ENGINEERING & UTILITY SERVICES MEMORANDUM Michael D. Beedie, Acting City Manager From: Michael Beedie, Engineering & Utility Services Director Date: June 26, 2012 Subject: Okaloosa County School Board MCA 4. RECOMMENDATION: 4. 1. Staff respectfully requests City Council authorization for the Mayor to execute a Memorandum of Agreement with the Okaloosa County School Board to resolve the issue of Stormwater Utility user fees. ATTACHMENTS: Memorandum of Agreement - Okaloosa County School Board ( PDF) Ordinance 1859 - Stormwater Management Utility ( PDF) SIGNATURE BLOCK Michael Beedie Skit ped 06/ 18/ 2012 4: 43 PM Finance Completed 06/ 19/ 2012 8: 20 AM 06/ 19/ 2012 8: 43 AM City Attorney Completed Carole Jones Completed 06/ 20/ 2012 8: 24 AM 06/ 20/ 2012 10: 19 AM City Manager Completed City Council Pending PackefP9. 170  14. 3. a MEMORANDUM OF AGREEMENT THIS MEMORANDUM OF AGREEMENT, is entered into effective the day of June 2012, by and between THE CITY OF FORT WALTON BEACH, FLORIDA, a Florida municipality ( hereinafter referred to as the " CITY ") whose address is 107 Miracle Strip Parkway, Fort Walton Beach, Florida 32548 and THE SCHOOL BOARD OF OKALOOSA COUNTY, FLORIDA, a Florida governmental corporate entity ( hereinafter referred to as the SCHOOL BOARD ") whose address is 120 Lowery Place, S. E., Fort Walton Beach, Florida 32548 to set forth the terms and conditions for a resolution of a dispute between the two agencies regarding stormwater utility user fee assessments that the CITY imposed under City Ordinance 1768 on properties within the CITY, including those owned by the SCHOOL BOARD. WITNESSETH: o0 m WHEREAS, The City Council of the CITY did adopt Ordinance 1768 which was p codified as Chapter 10. 521 of The Code of Ordinances of the CITY, which Ordinance implemented certain stormwater management requirements and standards within the CITY, m including the assessment of slomnwater utility user fees; and, vm WHEREAS, the SCHOOL BOARD did notify the CITY in November 2008, that it to objected to such fees against public school facilities and set forth its basis for challenging of the utility user fee requirements and documented that any further payment of such fees cs u made under protest and with a reservation of rights; and, by the SCHOOL BOARD were being A c WHEREAS, the CITY has now adopted Ordinance 1859 providing for additional t'o exemptions from the payment of stormwater utility user fees under Section 10. 521. 04; and, mma WHEREAS, the exemptions now include other governmental entities which under x O Chapter 553. 80 of the Florida Statutes, are not subject to the CITY' S stone water management requirements of its Land Development Code which includes the SCHOOL BOARD and therefore now exempts all School District property within the jurisdiction of the CITY from the E charges for stormwater utility user fees; and, m WHEREAS, the CITY and the SCHOOL BOARD have reached a resolution of the o E issues in dispute regarding the stormwater utility user fee requirements. a NOW, THEREFORE, the CITY and the SCHOOL BOARD, intending to be legally m bound, for and in consideration of the mutual covenants contained herein and other good and E valuable consideration, the receipt and sufficiency of which are hereby acknowledged, do hereby agree as follows: c aE 1. Through the adoption of Ordinance 1859, by the City Council of the City of Fort Walton Beach, Florida on February 28, 2012, Section 10. 521. 04 of Chapter 10. 521 of the Code of y5 Ordinances of the CITY was amended to expand the exemptions from the payment of Page 1 of 2 Packet Pg. 171  14. 3. a stormwater utility user fees and the SCHOOL BOARD now falls within the governmental entities that are exempt from the payment of stomiwater utility user fees to the CITY. 2. That in order to resolve the issues of both the stormwater utility user fees that were paid under protest, by the SCHOOL BOARD to the CITY from October 2008 through October 2009 in the total amount of $ 52,245. 25, and the stormwater utility user fees assessed by the CITY from November 2009 through the date of the adoption of Ordinance 1859, which were not paid by the SCHOOL BOARD, the SCHOOL BOARD agrees that all sums paid to the CITY for stormwater utility user fees shall be considered earned and retained by the CITY and CITY hereby waives the collection of any and all stormwater utility user fees that were not remitted to the CITY by the SCHOOL BOARD prior to the adoption of Ordinance 1859 and exempts the SCHOOL BOARD from any such payment obligations in the future. 3. Both the CITY and the SCHOOL BOARD believe it to be in the best interest of each w agency to amicably resolve this matter in order to avoid the potential expense of tax dollars that would be incurred in any litigation with each other over these issues. E N