Subject:
Title
Ordinance to sunset the Barefoot Bay Water & Sewer District at the end of 2029, while honoring any existing contractual obligations and commitments of the District.
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Fiscal Impact:
The final debt payments for the Barefoot Bay Water & Sewer District will be paid by December 1, 2029. Upon the dissolution of the Barefoot Bay Water & Sewer District, all district funds and all water and sewer accounts will be transferred to the Brevard County Utility Services Department.
Dept/Office:
Utility Services Department
Requested Action:
Recommendation
It is requested that the Board of County Commissioners hold a public hearing and consider adopting an ordinance providing for the dissolution of the Barefoot Bay Water & Sewer District, and the continuation and administration of the District’s existing contractual obligations.
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Summary Explanation and Background:
At the March 23, 1999, Board meeting, the Board of County Commissioners approved Ordinance 99-17, creating the Barefoot Bay Water and Sewer Utility District (the District), a dependent special district governed by the Board of County Commissioners, with the Brevard County Utility Services Department (the Department) responsible for district service operations. The outstanding debt associated with the District are the Revenue Bond Series 2009A and the Utility Refunding Revenue Note, Series 2018, with their last payments due by December 1, 2029, and October 1, 2029, respectively.
As a dependent special district, all revenue generated by the District must be spent on the District. Utility fees collected outside the District in the countywide system cannot be used within the District. The current District utility infrastructure is already operating beyond its intended useful life. The state’s enactment of new and additional environmental laws and regulations makes it increasingly difficult for the Department to operate the Barefoot Bay Water and Sewer Utility.
The existing Barefoot Bay water and wastewater treatment plant is over 50 years old and will not be able to meet new federal and state environmental requirements. As a result, the Department is designing a new water and wastewater treatment plant to serve not only Barefoot Bay, but also unincorporated Brevard County east of I-95 and south of Grant-Valkaria.
The District will have retired its debt and satisfied the purposes for which it was created by December 31, 2029, i.e., to provide and pay for a needed sewage disposal and water supply facility for the District. On December 31, 2029, upon dissolution of the District, the District’s utility service area will be merged into the Brevard County utility service area. Upon dissolution, all remaining revenue of the District will be transferred to Brevard County, and the user rates and fees for Barefoot Bay will be incorporated into those of the countywide system. The above-described regional advanced water and wastewater treatment plant, anticipated to be constructed by 2031, will serve Barefoot Bay and the additional areas previously mentioned, and all water, sewer, and reclaimed water systems will be owned and operated by the Brevard County Utility Services Department.
The proposed ordinance provides for the following:
1. The dissolution of the Barefoot Bay Water and Sewer Utility District as of December 31, 2029.
2. The continuation and administration of existing contractual obligations of the Barefoot Bay Water and Sewer Utility District. When all contractual obligations and commitments have been satisfied, any remaining surplus funds will be transferred to the Brevard County Utility Services Department.
3. Disposition of assets and liabilities of the Barefoot Bay Water and Sewer Utility District pursuant to Section 189.076, Florida Statutes.
4. The repeal of Chapter 98, Article VI, which includes Code sections 98-181 to 98-200, inclusive, of the Brevard County Code of Ordinances.
Clerk to the Board Instructions:
Upon approval by the Board, execution by the Chair, and attestation by the Clerk, file the ordinance with the Department of State as required by law within the 10-day deadline. Please return a copy of the executed ordinance with the Department of State’s official acknowledgment of filing to the County Attorney’s Office and the Utilities Department. Pursuant to Section 189.071, Florida Statutes, please forward a copy of this ordinance to the Special District Accountability Program at FloridaCommerce within thirty days of the effective date of this ordinance.