HomeMy WebLinkAbout390-Urban Service ~AN SERVICE AREA AND UTILITY SERVICE AREA 'E~'£~S~A'MMMm~T
day of ~~ , 1990 by and between Seminole County,
a political subdivision of th~ State of Florida, whose address is
Seminole County Services building, 1101 East First Street, Sanford,
Florida 32771, hereinafter referred to as "County"; and the City
of Sanford, a Florida municipal corporation, whose address is P.O.
Box 1778, Sanford, Florida 32772, hereinafter referred to as
"Sanford".
WITNESSETH:
WHEREAS, on 12th day of June, 1989 the Board of County
Commissioners and the Sanford City Commission, meeting in Joint
Worksession, agreed to a number of considerations affecting both
Sanford and County, including Transportation Impact Fees, first
response fire service, establishment of a City of Sanford Urban
Service Area, County agreement with future annexation limits for
Sanford, and water and wastewater service area-boundaries for the
County and Sanford in the Sanford Urban Area; and
WHEREAS, water and wastewater service boundaries require more
specific definition; and
WHEREAS, it is in the interest of both County and Sanford to
define utility service areas to facilitate long range planning and
achieve best economy of utility system development; and
WHEREAS, it is desirable to create a procedure for providing
for interim utility service to properties within one utility
provider's service area, but which may be more exped~sl
~ u r a ty com~an~ known as
~ake ~onroe Utilities and a portion of the Otility's certified area
lies within the utility service area contemplated within this
Agreement;
WHEREAS, Sanford and County have agreed that Sanford shall
reimburse County for ~ro rata share of the purchase price County
incurred in the acquisition of ~ake ~onroe Utilities based upon the
~.~ce Area addressed within this Agreement.
NOW~ THEREFORE, in consideration of the premises, mutual
covenants, and agreements and promises contained herein, the
parties do hereby covenant and agree as follows:
SECTION 1. The foregoing recitals are true and correct, and
form a material part of this Agreement upon which the parties have
relied.
SECTION 2. DEFINITIONS. Parties agree that in construing
'this agreement the following words, phrases and terms shall have
the following meanings unless the context indicates otherwise:
2.1 "AGREEMENT" means this Utility Service Area
Establishment agreement as it may from time to time be modified.
2.2 "COLLECTION FACILITIES" means those facilities located
within the Sanford Utility Service Area, operated and maintainedby
Sanford and used to collect wastewater and transmit it to County's
transmission and treatment facilities located outside of the
Sanford Wastewater Service Area as depicted on Exhibit C.
2.3 "COUNTY WASTEWATER SYSTEM" means those transmission
facilities and County plant from which Sanford is receiving
wastewater service capacity on a wholesale basis, and which are
operated and maintained by the County.
2.4 "COUNTYWATER SYSTEM" means those transmission facilities
and County plant from which Sanford is receiving water service
capacity on a wholesale basis, and which are operated and
maintained by County.
5.5 "DISTRIBUTION FACILITIES" means those facilities operated
and maintained by Sanford to receive potable water from County's
transmission facilities at point(s) of connection along the water
service area boundaries as depicted on Exhibit B.
2.6 "GPD" means gallons per day on an average annual basis.
2.7 "POINT OF CONNECTION" is the location(s) where Sanford
Distribution or Collection Facilities connect to County Water
Transmission Facilities or Wastewater Transmission Facilities.
2.8 "SANFORD WATER UTILITY SERVICE AREA" shall be that area
depicted on Exhibits A and B wherein properties shall be ultimately
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provided retail water service by City of Sanford in accordance with
the terms of this Agreement. County shall have the rights to
provide retail water service to all surrounding properties not
included in the City Water Utility Service Area.
2.9 "SANFORD WASTEWATER UTILITY SERVICE AREA" shall be that
area as shown on Exhibits A and C where in properties will be
ultimately provided retail wastewater service by Sanford in
accordance with the terms of this agreement. County shall have the
right to provide retail wastewater service to all surrounding
properties not included in the Sanford Wastewater Utility Service
Area.
2.10 "SANFORD UTILITY SERVICE AREA" includes the presently
incorporated area of City of Sanford and those portions of
presently unincorporated Seminole County surrounding Sanford as
depicted on Exhibit A, as further detailed in Exhibits B and C. In
cases of apparent conflict between Exhibit A and Exhibits B or C,
Exhibit B or C shall prevail.
2.11 "WATER SERVICE CAPACITY" means the rate of potable water
flow measured in GPD which Sanford wishes to buy from the County
and which County agrees to produce from its water system.
2.12 "WASTEWATER SERVICE CAPACITY" means the amount of
wastewater flow measured in GPD, which Sanford wishes to buy from
County and which County agrees to accept at its wastewater system
in accordance with the terms of this agreement.
2.13 "WASTEWATER TRANSMISSION FACILITIES" means those lines,
pipes, lift stations, meters and appurtenant equipment used by
County to transmit wastewater from the Sanford collection
facilities to the head works of the County plant.
2.14 "WATER TRANSMISSION FACILITIES" means those lines, pipes,
water mains, meters and appurtenant equipment used by County to
transmit potable water from the County plant to the point(s) of
connection with the Sanford distribution facilities. These
point(s) of connection will be located at the water service area
boundaries as shown on Exhibit B.
SECTION 3. PURPOSE. The purpose of this Agreement is to
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establish water and wastewater utility service areas that are
planned to be ultimately served by Sanford. This Agreement also
provides for interim wholesale utility service to Sanford by County
for those areas where County can more expeditiously meet near term
requests for utility service for property which is located within
the designated Sanford Water or Wastewater Utility Service Area.
Under this Agreement, County shall sell wholesale water service
capacity and/or wastewater service capacity to Sanford for those
properties located within the Sanford Utility Service Area; and
Sanford shall purchase and receive from County, wholesale water
and/or wastewater service capacity for interim service for these
properties. Sanford shall, in turn, serve utility customers in its
utility service areas on a retail basis.
SECTION 4. TERM. This Agreement shall be effective when
executed by all parties hereto. Those parts of the Agreement
relative to wholesale utility sales/service shall continue in full
force and effect for five (5) years, unless extended by mutual
agreement of both parties to this Agreement. Those parts of the
Agreement relative to Utility Service Area establishment shall not
be affected by the five (5) year term established for utility
wholesale sales and shall continue in full force and effect
indefinitely, except as provided for elsewhere in this Agreement.
Within said five (5) year period, Sanford shall have the option to
undertake construction of its own water transmission facilities and
wastewater collection facilities to serve those customers initially
being servedby the County on a wholesale basis, pursuant to this
Agreement. At the completion of the five (5) year term, should it
be determined that Sanford is unable to assume direct retail
service to said customers, customers shall become direct customers
of the County. Any future customers requesting service who would
be served from lines acquired by the County in accordance with
Sections 6.1 and 6.2 shall also become retail customers of the
County. Notwithstanding the foregoing, the parties agree that
Sanford, at its sole option, may terminate the Utility Wholesale
sales part of this Agreement without cause bygiving not less than
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60 days written notice of its election to do so, to the County.
SECTION 5. REIMBURSEMENT FOR LAKE MONROE SERVICE AREA.
~anford and the County acknowledge that the Lake Monroe Utilities
Service Area consists of 1614 acres. The proposed Sanford Water
Service Area includes 308 of those acres, the proposed Sanford
Wastewater Service Area includes 201 of those acres. Sanford
further agrees to pay to the County the sum of One Hundred Eighty-
Five Thousand, Seven Hundred Twenty Dollars ($185,720) within 45
days of execution of this Agreement. Said sum shall be a
reimbursement to the County for the cost of those portions of the
Lake Monroe Utility Service Area now being conveyed by the County
to Sanford by this Agreement. Further, said sum is calculated as
detailed in Exhibit D of this Agreement. Should any of the service
area hereby acquired by Sanford, ultimately return to Seminole
County in accordance with other sections of this Agreement, Sanford
shall receive an appropriate refund based on acreage returned to
County and the calculation used in this Section.
SECTION 6. WATER AND WASTEWATER SERVICE CAPACITY.
6.1 Provision of Water Service Capacity. It is the intent of
the parties that Sanford will have the ability and shall assume
full water service for all customers included within the Sanford
Water Utility Service Area. Initially, retail water service may be
through wholesale purchase of water capacity from County, under
this Agreement. Should Sanford be unable to assume direct water
service for retail customers within the Sanford Water Utility
Service Area, not involving wholesale procurement from County
within a five (5) year period, County shall become the retail water
service provider for those retail customers. If, at the end of the
specified five year period, Sanford is not yet directly serving all
such customers, but has a FDER construction permit and is actively
constructing, or has a binding contract for construction of
necessary facilities to provide direct service, an additional six
(6) months shall be allowed for facility completion and
commencement of direct service. If Sanford does not assume said
direct water service, applicable water impact fees collected during
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~he term of this Agreement shall be remitted to County and
associated distribution lines and appurtenant facilities shall be
deeded to the County by Sanford at no cost to the County. Said
remittance of impact fees and dedication of lines shall occur
within 45 days from the expiration of the Utility Sales portion of
this Agreement.
6°2 Provision of Wastewater Service capacity. It is the
intent of the parties that Sanford will have the ability and shall
assume full wastewater service for all customers included in the
Sanf0rd Wastewater Utility Service Area. Initially, retail
wastewater service may be through wholesale purchase of wastewater
capacity from County, under this Agreement. Should Sanford be
unable to assume direct wastewater service for retail customers
within the Sanford Wastewater Utility Service area, not involving
wholesale procurement from County within a five (5) year period,
County shall become the retail wastewater service provider for
those retail customers. If at the end of the specified five year
period, Sanford is not yet directly serving all such customers, but
has a FDER construction permit and is actively constructing, or has
a binding contract for construction of necessary facilities to
provide direct service, an additional six (6) months shall be
allowed for completion and commencement of direct service. If
Sanford does not assume such direct wastewater service, applicable
wastewater impact fees collected during the term of this Agreement
shall be remitted to County and associated collection lines and
appurtenant features shall be deeded to the County bySanford at no
cost to the County. Said remittance of impact fees and dedication
of lines and equipment shall occur within forth-five (45) days from
the expiration of this Agreement.
6.3 RESERVATION OF CAPACITY. The County intends to reserve
both water and wastewater capacity for Sanford for proposed
development of those properties within Exhibits B and C,
respectively. Therefore, should Sanford be unable to meet its
obligation to provide direct retail service for either water or
wastewater service, both the wholesale water and wholesale
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wastewater parts of this Agreement shall be considered in default.
6.4 CONNECTION TO TRANSMISSION FACILITIES. Sanford, its
successors or assigns, shall connect or cause to be connected, the
water distribution facilities to the water transmission facilities
at the point(s) of connection established on Exhibit B in the case
of water service, and shall connect or cause to be connected, the
collection system to the County Wastewater Transmission facilities
at point(s) of connection to be identified as Exhibit C in the case
of wastewater service. Operation, maintenance and replacement of
all pipes, fittings, valves and appurtenances including the
transmission facilities up to the point of connection into the
County distribution/transmission systems and water/wastewater plant
providing capacity shall be the responsibility of County.
Operation, maintenance and replacement of the distribution/
collection system(s) and master water meters shall be the
responsibility of Sanford.
6.5 IMPACT FEES. Prior to commencement of service and prior
to issuance of any building permits, Sanford shall collect an
impact fee established bySanford for each unit to be served bythe
County water and/or wastewater transmission and treatment
facilities. Said impact fee(s) collected shall be placed in an
interest bearing escrow account. The escrow agent to receive and
administer said escrow account shall be mutually agreed upon by
County and Sanford.
The terms of the escrow shall be that if within five (5) years
from the date of execution hereof, Sanford is able to assume direct
service for any retail customers initially served hereunder, said
fees for those new connections shall be released from escrow to
Sanford, except that 3.33% of the escrow, plus accrued interest,
shall be released to County for each calendar year and prorated for
any portion thereof that wholesale water and/or wastewater service
was provided for that property under this Agreement. Release of
impact fees to Sanford shall be based upon Sanford's demonstration
that construction of a water/wastewater transmission facility(s)
which shall result in provision of service by Sanford to retail
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customers contemplated and being served under this Agreement has
occurred. Such demonstration shall include an approved Department
of Environmental Regulation permit for construction of said
system(s), executed contracts for the construction of the system
and any necessary disconnection from County transmission facilities
within six (6) months. The County acknowledges that Sanford may
not utilize a contractor for said work and may utilize City forces
or developer commitments for said construction; in such cases an
executed contract will not be required and identified sources of
funds adequate to pay the cost of the system. Upon commencement of
construction, escrowed funds shall be released as costs of
construction are incurred. Draws against the escrow shall be no
more frequent than monthly and must include copies of corresponding
contractor's invoices together with certification of Sanford's
consulting engineers that work covered by the invoices has been
performed in accordance with all requirements. In any case, upon
completion of construction and provision of direct services by
Sanford to certain customers pursuant to this Agreement, the
balance of escrow for those customers less fees previously paid or
due to County, as addressed above, shall be paid to Sanford.
Should it be determined that at the end of five (5) years or as
further specified in Sections 6.1 and 6.2 that Sanford is unable to
service directly any retail customers served under this Agreement,
said fees together with all accrued interest, less escrow fees,
shall be paid to County.
Sanford shall be solely responsible for collection of required
impact fees, service deposits, connection costs and tap fees, and
for monthly billing and their distribution as set forth in the
Agreement. Customers provided retail water and/or wastewater
service under this Agreement shall be retail customers of Sanford.
6.6 METERING
(a) Sanford shall furnish and install or cause to be
furnished and installed, master water metering equipment for each
point of connection under this Agreement as depicted in Exhibit B.
This metering equipment shall be considered to meter all water
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flowing from the County transmission facilities to the distribution
facilities. The metering equipment shall remain the property of
Sanford, and Sanford shall be responsible for the operation and
maintenance, and replacement. County shall have the right to
review and approve the type of meter and meter installation in each
case. County approval shall not be unreasonably withheld. County
shall also have the right to read the meter(s) and the right of
access thereto for billing purposes.
(b) The metering equipment shall be of standard make and
type, installed in a readily accessible location and shall record
flow with an error not to exceed plus or minus five-percent (5%) of
full scale reading, suitable for billing purposes. Sanford shall
test the meters for accuracy at regular intervals consistent with
testing within the remainder of the Sanford Water Utility Service
Area. Sanford shall provide County with test results. If either
party desires more frequent meter checks, work shall be at that
party's expense. Results shall be provided to the other party in
adjustments of charge if any shall be specified. Bills shall be
adjusted for meter error in excess of 5% of full scale readings.
In calculating such billing adjustments, it will be assumed that
the meter in accuracy existed for one-half of the entire time
interval between meter accuracy checks by either party. The
billing adjustment shall be made at the same rate established in
accordance with Section 6.8 hereof but the volume used in the
billing calculation shall be adjusted as described herein. Either
party may test the meter more frequently at his expense. If errors
are found, adjustments shall be made as specified above.
(c) Applicable charges for wastewater shall be based on
the total amount of metered water consumption for all master meters
served under this Agreement. Charges for wastewater service shall
be calculated as follows:
Total wastewater flow =
Total metered 300 gpd/sewer ERC ~ of permitted sewer ERC's
Water consumption 350 gpd/water ERC ~ of permitted water ERC's
In order to reasonably account for potable water used for
irrigation and therefore not resulting in wastewater flow, Sanford
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,nay accumulate monthly data showing dedicated irrigation meter
consumption and billings, and in the case of single family
dwellings, capped monthly sewer charges (12,000 gallons per month)
'where the retail water charge/consumption exceeds the sewer charge
cap. This data shall be utilized to determine an appropriate
wastewater credit based on the prior month's wastewater charge.
The credit shall be the product of the current County wastewater
treatment charge and the number of thousands of gallons shown by
Sanford retail billing data to have passed through retail
irrigation meters or, in the case of single family residences,
monthly retail water consumption that exceeded the 12,000 gallons
per month sewer service charge cap.
It shall be the responsibility of County to perform the
wholesale charge calculation each month and to bill Sanford for
wastewater service based upon such calculation. Calculation of any
credit for irrigation use of water shall be the responsibility of
Sanford. The County and Sanford reserve the right to review the
data used in these calculations at any time, upon request.
6.7 SERVICE STANDARDS. The parties hereto do mutually agree
that after connection of distribution facilities to the
transmission facilities as provided herein, County will
continuously provide at point(s) of connection, at its cost and
expense, but in accordance with other provisions of this Agreement,
water service and/or sewer service capacity sufficient to meet the
peak average daily domestic wastewater treatment, and water service
demand plus fire flow, in a manner to conform with all applicable
governmental requirements. Upon connection of the distribution
facilities to the transmission facilities, any customers that have
or will connect to the distribution facilities shall be customers
of Sanford and shall pay Sanford's rates, impact fees, connection
charges and deposits for water and/or wastewater service.
6.8 WHOLESALE WATER AND WASTEWATER USER CHARGES.
(a) THE WHOLESALE WATER USER CHARGES. County agrees to
provide potable water for use by Sanford in accordance with the
terms and conditions of this Agreement at a wholesale charge of
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$0.67 per thousand gallons of potable water. The charge shall be
adjusted from time to time by the County based on increased cost.
This charge shall at all times be the minimum charge madeby County
to any other wholesale purchaser of water service within the
County. The adjusted charge shall become effective on approval of
the Board of County Commissioners of Seminole County, Florida and
Sanford shall thereafter pay said charge as adjusted. County
agrees to bill Sanford monthly for water which passes through the
master meter(s) monthly for properties served under this Agreement.
Sanford agrees to provide consumption data on a monthly basis to
facilitate wholesale billing and to pay County for all potable
water consumption which passes through the master meters at the
above mentioned rate, and agrees to make payments to County within
30 days from the date of County's bill. The City and County agree
to negotiate in good faith to determine billable quantities of
water in case of distribution system breaks or leaks within the
City Water Utility Service Area. In recognition of joint benefit
for fire fighting within the incorporated and unincorporated
portions of the Water Utilities Service Area, and the First
Response Agreement, Sanford and the County agree to negotiate
equitable billing adjustments for water and related wastewater
charges in cases of significant fire flow requirements.
(b) WHOLESALE WASTEWATER USER CHARGES. County agrees to
provide transmission, treatment and disposal of Sanford's
wastewater in accordance with the terms and conditions for a charge
of $1.82 per thousand gallons of retail wastewater treatment
billed. The charge shall be adjusted from time to time by the
County based on increased costs. The wholesale wastewater charge
under this Agreement shall not exceed the lowest wholesale charge
to any other wholesale customer bythe County. The adjusted charge
shall become effected on the approval of the Board of County
Commissioners of Seminole County, Florida and Sanford shall
thereafter pay said charge as adjusted. The County agrees to bill
Sanford monthly based on the total number of gallons of potable
water billed in accordance with Section 6.6 (c) of this Agreement.
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S~nford agrees to pay for all wastewater transmitted from the
collection facilities, thusly determined, at the above mentioned
rate and agrees to make payment to County within 30 days from the
date of County's bill. Any applicable wastewater charge credits
for the previous month, as addressed in Section 6.6 (c) shall be
deducted from the bill.
SECTION 7. CHANGE OF RATES. In event County, during the term
of this Agreement, shall propose any new rate schedule or amended
rate schedule applicable to wholesale service furnished, County
shall forward a copy of such rate schedule or amended rate schedule
prior to the effective date thereof, and substitute such rate
schedule or amended rate schedule for the rate schedule then in
effect hereunder for such wholesale service, commencing with the
next billing period after the effective date.
SECTION 8. USE OF RIGHT-OF-WAY. Water transmission lines and
wastewater collection and transmission lines are frequently
installed in street/road rights-of-way (ROW) owned by County or
Sanford. County and Sanford agree to cooperate in permitting the
installation and maintenance of water and wastewater lines of the
other party, within owned rights-of-way. Such permitting and fees
shall be in accordance with established procedures. Approval shall
not be unreasonably delayed or withheld.
SECTION 9. DEFAULT. Any party to this Agreement, in the
event of or act of default by the other(s), shall have all remedies
available to it under the laws of the State of Florida including,
but not limited to, injunction to prevent default or specific
performance to enforce this Agreement. Each party agrees to pay
all reasonable costs and attorney fees for the other parties not in
default, provided that such costs and attorney fees are payable
under this Section only if suit is filed that results in an
adjudicated default. The rights of parties shall be considered
accumulative and shall not be waived now or in the future by the
exercise of any rights or remedies provided under the terms of this
Agreement and authorized by law.
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SECTION 10. NOTICES. Any notice required or allowed to be
delivered hereunder shall be in writing and be deemed delivered
when (a) hand delivered to the official hereinafter designated, or
(b) upon receipt of such notice when deposited in the United States
mail, postage prepaid, certified mail, return receipt requested,
addressed to a party at the address set forth opposite the party~s
name below, or at such other address as the party shall have
specified by written notice to the other party delivered in
accordance herewith.
SANFORD City Manager
City of Sanford
Post Office Box 1778
Sanford, Florida 32772
With a copy to: Director of Engineering and Planning
and
City Attorney
COUNTY Seminole County Director of
Environmental Services
Post Office Box 2469
Sanford, Florida 32771
With a copy to: Seminole County Attorney
Seminole County Services Bldg.
1101 East First Street
Sanford, Florida 32771
SECTION 11. SEVERABILITY. If any part of this Agreement
is found invalid or unenforceable by any court, such invalidity
or unenforceability shall not affect the other parts of this
Agreement if the rights and obligations of the parties contained
herein are not materially prejudiced and if the intentions of the
parties can continue to be effected. To that end, this Agreement
is declared severable.
SECTION 12. TIME OF THE ESSENCE. Time is hereby declared of
the essence to the lawful performance of the duties and obligations
contained in this Agreement.
SECTION 13. APPLICABLE LAW. This Agreement and the
provisions contained herein shall be construed, controlled and
interpreted according to the laws of the State of Florida.
SECTION 14. CONDITION PRECEDENT. The County and Sanford
propose to enter into this Agreement which provides for two types
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of service: Wholesale Water Service and Wholesale Wastewater
Service. Provision and obtaining of either of these services is
contingent upon providing and/or obtaining the other, as
applicable. Failure to provide either of the utility services
constitutes default of this Agreement, however, this failure shall
in no way abrogate the Agreement with regard to Urban Service Area
and future annexation area boundaries as depicted on Exhibit A.
This instrument supersedes all previous discussions,
understandings, and agreements between the parties relating to the
subject matter of this Agreement. Amendments to and waivers of the
provisions herein shall be made by the parties in writing by formal
amendment.
IN WITNESS HEREOF, the parties have hereunder executed this
Agreement on the date and year first above written.
ATTEST: BOARD OF COUNTY COMMISSIONERS
M Sandra S Glenn, Chairman
Commissioners of Seminole 8El I ~
county, Florida Date:
For use and reliance As authorized for execution
of Seminole County only. by the Board of County
Approved as to form and Commissioners at their
legal sufficiency. regular meeting.
C~ Attorney
Date,
For the use and reliance
of' Ci't.y~ 0f.'Sanford only.
Approved 'as to form and
lcle~c
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EXHIBIT C-I (' ( ~ (
SANFORD WASTE WATER SEP, VI:CE AREA
' d s.-, LEGEND
f"'777 SANFORD SEWER
SERVICE BOUND~
i ..-.~. ,,. <. _
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TO LAKE
"' JESSUP
EXHIBIT D-
LAKE MONROE UTILITIES ANALYSIS SANFORD PORTION
I. Net cost of LMU service area
Purchase Price $1,593,200
Less: Land value 100,000
Equipment 200,000
Net Purchase Price $1,293,200
II. Per cent of total service area that Sanford wants to
acquire.
A. Water portion 308 acres Sewer portion 201 acres
308/1614 201/1614
= 19.08% = 12.45%
B. Percentage split of service area acquired by water
and sewer. This is based on the relative value of
connection fees on a per gallon basis.
Water c/f $2.83 per gallon
Sewer c/f 7.00
$9.83
Water 2.83/9.83
= 28.79%
Sewer 7.00/9.83
= 71.21%
Net purchase price $1,293,200 broken down into water and
sewer portions
Portion applicable to water = 1,293,200 Adjusted for rounding
for entire service area 28.79
$ 372,305 $372,305 water
Portion applicable to sewer = 1,293,200
for entire service area 71.21%
$ 920,888 $920,895 sewer
$1,293,200
C. Calculation of cost of water service area to be
acquired by Sanford
$372,305
19.08%
$ 71,036
Sewer Service Area $920,895
12.45%
$114,684
Total cost of service area to be acquired by Sanford w/o
debt service
$ 71,036
114,684
$185,720