AGENDA MEMORANDUM

 

 

Meeting Date:           June 14, 2010

 

From:                          Betty M. Richardson, City Clerk

 

Subject:                      Ordinance adopting an extension of the current four-year deadline for developers to obtain reimbursements for installation of electric infrastructure

 

 

Staff Recommendation:

Staff recommends approval of the ordinance approving an extension of the four year deadline for developers to obtain reimbursements for installation of electric infrastructure in subdivisions.

 

Analysis:

In 1982, the Commission approved an ordinance allowing developers to place a surety-bond, cash bond, or letter of credit for two years for the cost of the overhead installation, if the electric lines were placed underground. The developers had two years to fill their subdivisions with active electric meters in order to receive credit from the chosen instrument.  In 1984, the Commission recognized the two year period was not realistically long enough for developers to fill the subdivisions and extended the time for the developers to receive refunds to four years.   These instruments are on file at the City and at the end of the four year period, the City Clerk draws on the instrument for any lots covered that do not have normal flow of electricity through the meters.

 

Because of the economic times in our area, staff would like to extend the time for developers to be able to receive refunds for an additional two years for those instruments terminating on or before December 31, 2011.  Real estate is not moving as quickly as in more affluent times, which no one could have predicted when several subdivisions were started.  This action will extend the time for developers to be able to recoup more of their funds as home sales increase.

 

Options:

1.  Approve the Ordinance to extend the time to refund Developers by two years for those whose  instruments terminate on or before December 31, 2011; or

2.  Such alternative action as the Commission may deem appropriate

 

Fiscal Impact

None.  The additional time allows for developers to complete their development projects.  Under the current terms of the agreements, funds held in escrow would be forfeited to the City at the end of the contract period. 

 

 


Submission Date and Time:    6/9/2010 2:07 PM____

 

Department: ______________________

Prepared by:  br_________________                     

Attachments:      Yes____   No _____

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. ________JB________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________


 

 

ORDINANCE NO.                         ___

 

AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, AMENDING §25 – 474 OF THE CODE OF ORDINANCES PERTAINING TO INSTALLATION OF THE ELECTRICAL DISTRIBUTION SYSTEM IN SUBDIVISIONS AND NEW DEVELOPMENTS; PROVIDING FOR AN EXTENSION OF THE CURRENT FOUR YEAR DEADLINE TO OBTAIN REIMBURSEMENTS FOR THE DIFFERENCE IN COST BETWEEN OVERHEAD AND UNDERGROUND SERVICE IF THE DEVELOPER PAYS UP FRONT FOR THE COST OF INSTALLING THE INFRASTRUCTURE; PROVIDING FOR AN EXTENSION OF THE CURRENT FOUR YEAR DEADLINE FOR THE CITY TO DRAW DOWN ON ANY BOND, CASH DEPOSIT, OR LETTER OF CREDIT PLACED WITH THE CITY AS ASSURANCE OF FUTURE PAYMENT WHERE THE DEVELOPER DOES NOT PAY THE COST OF INSTALLING THE INFRASTRUCTURE UP FRONT; LIMITING THE BENEFITS OF THE EXTENSIONS HEREIN CREATED TO THOSE DEVELOPMENTS IN WHICH THE CURRENT DEADLINE WILL EXPIRE ON OR BEFORE DECEMBER 31, 2011; REPEALING CONFLICTING ORDINANCES; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE;

 

BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA:

 

SECTION I.

 

§25 – 474 of the Code of Ordinances of the City of Leesburg, Florida, is hereby amended to read as set forth below (provisions deleted from the existing ordinance are shown in strikethrough and provisions added hereby to the existing ordinance are shown in double underline):

 

Sec. 25-474.  Installation of electrical distribution system.

 

(a)   Whenever a real estate owner, promoter or developer, private or corporate, desires to develop a plot or tract of land, an apartment, a condominium, an office, housing units of two (2) or more units or other physical facility either by contracting a building or buildings of two (2) or more units thereon, or by subdividing the realty, within the electrical distribution area of the city, the city will install the electrical distribution system within the subdivision, tract or plot of land, an apartment, a condominium or office or housing units of two (2) or more units only upon the payment by the developer to the city of the total estimated cost of the installation of the electrical distribution system within the tract or plot of land, an apartment, a condominium, a subdivision or office or housing units or two (2) or more units, whether such system be underground or overhead.

 

(b)   The real estate owner, promoter or developer shall be reimbursed for the installation cost as residences or other buildings are built and occupied and the electricity is permanently turned on for the residences or other buildings solely for a permanent occupant for each unit, who dealt at arms length with the owner, promoter or developer. Reimbursement to the real estate owner, developer or promoter shall not be made until the city shall be assured that the normal flow of electricity to each unit shall be at a rate of kilowatt hours which shall average the approximate flow to similar units occupied for at least one (1) year and then receiving electricity from the city. The rate of reimbursement for each unit shall be determined by dividing the total number of installed meters into the sums paid by the real estate owner, developer or promoter of the city. If one (1) home or building is built in two (2) or more units, then the owner, developer or promoter shall be reimbursed accordingly. A unit is defined as a compartment, office, apartment or house as the case may be.

 

(c)   The reimbursement will be for the cost of the distribution system for overhead only, with the understanding that the real estate owner, developer or promoter shall pay for the cost difference between underground and overhead service. Reimbursements will be limited to a period of four (4) years following payment of the installation cost of the system by the real estate owner, developer or promoter, to the city. The city commission may elect to waive the four-year limitation for a period of up to forty-five (45) one hundred and eighty (180) days, upon application by the real estate owner, developer, or promoter, if the city, at its discretion, determines that conditions beyond the control of the developer delayed the requirements for reimbursement under this section. Furthermore, as to any development or project for which the four (4) year deadline herein established to claim the reimbursement expires on or before December 31, 2011, such deadline shall be extended automatically for a period of two (2) years after the current deadline, without action by the City Commission, provided however that this extension provision shall terminate on January 1, 2012 and shall not be available for any development or project as to which the current four year deadline expires on or after that date.

 

(d)   The city will install at its cost service lines and poles from the distribution line to the masthead and will not require contribution from the owner of the home desiring electric services unless such service line, in the sole opinion and discretion of the city, requires more than one (1) electrical pole, in which event the person requesting such service shall pay for the cost of such additional poles and installation thereof.

 

(e)   In lieu of the payment required by subsection (a) of this section, the city may, at its option, by contract approved by the city commission, allow the developer to post a bond acceptable to the city, either surety or cash, or a letter of credit acceptable to the city, which bond or letter of credit will be conditioned to pay the sums required under subsection (a) of this section less any rebates which would have been made under the terms of this article, and which bond or letter of credit will be payable four (4) years from the date same is given. Upon the payment thereof, the developer, or surety, as the case may be, will be entitled to the pro rata reimbursement as contemplated by this article. Furthermore, as to any development or project for which the four (4) year deadline to draw on the bond or letter of credit expires on or before December 31, 2011, such deadline shall be extended automatically for a period of two (2) years after the current deadline, without action by the City Commission, contingent on the developer placing with the City an acceptable replacement bond, cash deposit or letter of credit payable on or before two (2) years from the expiration of the deadline to draw on the initial bond or letter of credit, and provided further that this extension provision shall terminate on January 1, 2012 and shall not be available for any development or project as to which the current four year deadline expires on or after that date.

 

 

SECTION II.

 

All ordinances or part of ordinances which are in conflict with this Ordinance are hereby repealed, to the extent necessary to alleviate the conflict, but shall continue in effect insofar as they are not in conflict herewith, unless repeal of the conflicting portion destroys the overall intent and effect of any of the conflicting ordinance, in which case those ordinances so affected shall be hereby repealed in their entirety.

 

SECTION III.

 

If any portion of this Ordinance is declared invalid or unenforceable, and to the extent that it is possible to do so without destroying the overall intent and effect of this Ordinance, the portion deemed invalid or unenforceable shall be severed herefrom and the remainder of the ordinance shall continue in full force and effect as if it were enacted without including the portion found to be invalid or unenforceable.

 

SECTION IV.

 

This Ordinance shall become effective upon its passage and adoption according to law.

 

PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held on the                   day of                                                 , 2010.

 

 

 

                                                                                    THE CITY OF LEESBURG, FLORIDA

 

 

 

                                                                                    BY:                                                                 

                                                                                                MAYOR

 

 

 

Attest:                                                                        

            CITY CLERK