(A) (1) Except as provided in division (C) below, each owner or consumer who, acting on his own behalf or through authorized agents, makes application for a building permit for any new construction or any addition or alteration that results in additional reserve capacity necessary for the water treatment plant in accordance with the schedule below, shall incur and pay before issuance of any such permit, in addition to the tapping charge, a water reserve capacity charge. In the event a project is abandoned in whole or in part prior to the issuance of a certificate of occupancy, or a building permit expires, the city shall refund the water reserve capacity charge attributable to such abandoned or expired project or part thereof to the owner or consumer, except that the city shall be entitled to retain 25% of the water reserve capacity charge as an administrative fee. In the event such abandoned or expired project or part thereof is revived, the owner or consumer shall apply and pay for a new building permit and associated water reserve capacity charges in full. Provided however, that such payment of water reserve capacity charges other than provided in division (C) below may be made over a specified period of time as more specifically provided in paragraph (2) below.
(2) Water reserve capacity charges are to be paid, by the Owner or Consumer, in accordance with the payment procedure set forth below. However, if said Owner, Consumer or developer of new construction for which additional capacity is necessitated intends to convey or conveys the property prior to the completion of all payments under the agreement, the Owner, Consumer or developer shall pay all final amounts owing under the agreement prior to the conveyance. The water reserve capacity charges constitute a lien against the property, and the agreement shall provide for the City to record a claim of lien for said charges immediately upon execution of the agreement.
The Owner or Consumer shall be required to enter into an agreement with the City reflecting the terms of the payment arrangement. The Owner or Consumer shall have the option to pay in full the water reserve capacity charges or enter into a payment arrangement for 60 equal monthly payments, with the first payment due before issuance of any building permit. Whenever possible, each payment will be included on the utility bill for the property. The following parameters shall apply:
(a) Interest on the unpaid balance will accrue at a rate to be set in the formal agreement. The rate will be the higher of six per cent per year or two-thirds of the U.S. Prime Rate published in The Wall Street Journal on the third Tuesday of March, June, September and December. If the third Tuesday is a holiday, the City will use the Prime Rate published the next day. If more than one Prime Rate is published, the City may choose the highest rate. If The Wall Street Journal ceases publication or ceases to publish the Prime Rate, the City may use the Prime Rate published in any other newspaper of general circulation, or the City may substitute a similar reference rate at its sole discretion. A penalty of 12% per year will accrue on any delinquent balance.
(b) If utility service is discontinued pursuant to § 51.142 because of a default in payment of water reserve capacity charges, responsibility for payment for the period up to termination will continue, but there will be no further responsibility under the agreement if said agreement is to be permanent.
(c) If the payment arrangement is with a Customer who is not the property Owner, and the Customer is delinquent in payment, and the City has exhausted all reasonable efforts to bring the payments current, the property Owner will be given the option to enter into an agreement with the City to assume responsibility for
payment of the water reserve capacity charges. If the property Owner refuses to enter into such agreement, then the water reserve capacity for the property will be restored to the level that existed prior to the construction, addition or alteration that resulted in the assessment of the water reserve capacity charges.
(d) If a new Customer assumes responsibility for payments under an agreement that is current in payment, the new Customer must enter into a new agreement with the City.
(e) Credit for payments made under a previous agreement shall carry forward and be applied toward any new agreement concerning the same property entered into within five years of termination of the previous agreement. The previous agreement shall be considered terminated when the City determines that it has exhausted all reasonable efforts to bring delinquent payments current.
(3) Except as provided in subdivision (1) above with respect to abandoned and expired projects, there shall be no refunds of payments made for water reserve capacity charges.
(B) (1) The following have the definitions referenced herein:
(a) BUILDING. Any structure, either temporary or permanent, built for the support, shelter or enclosure of persons, chattels or property of any kind, or any other improvement, use, or structure which creates or increases the potential demand on the utility systems operated by the City of Hollywood Public Utilities Department. This term shall include trailers, mobile homes, or any vehicle serving in any way the function of a building. This term shall not include temporary construction sheds or trailers erected to assist in construction and maintained during the term of a Building Permit.
(b) BUILDING PERMIT. An official document or certificate issued by the authority having jurisdiction, authorizing the construction or siting of any building. For purposes of this section, the term BUILDING PERMIT shall also include a tie-down permit for any structure or building, such as a mobile home, that does not otherwise require a Building Permit in order to be occupied.
(2) The owner, agent or party responsible for any building within the city shall be subject to the payment of a water reserve capacity charge under this section upon the first occurrence of any of the following:
(a) Whenever any existing building, which has not previously paid reserve capacity charges under this section connects to the water utility system; or
(b) Whenever any existing building or applicable improvement which is connected to an interim system is connected, either directly or indirectly, to the water utility system; or
(c) Whenever a person applies for a Building Permit to alter an existing building or applicable improvement already connected to the city’s utility system, where such alteration increases the potential demand on the water utility system.
(3) Imposition.
(a) All development occuring within the city shall pay the applicable water reserve capacity charges in accordance with division (4) of this section.
(b) The applicable water reserve capacity charges shall be paid in addition to all other fees, charges and assessments due for the issuance of any Building Permit and is intended to provide funds to pay for the fair share portion of the water utility system necessitated by system growth and expansion.
(4) The water reserve capacity charge shall be established by resolution of the City Commission.
(5) Alterations, expansions, replacements and rehabilitations of existing non- residential buildings.
(a) Unless there is an increase in the meter size, there shall be no water reserve capacity fee due for:
1. An alteration or expansion of an existing building or improvement;
2. The construction of accessory buildings or improvements;
3. The replacement or rehabilitation of an existing building or improvement.
(b) The water reserve capacity charge for an alteration, expansion, replacement or rehabilitation of an existing non-residential building shall be equal to the charge set forth in Table 2 for the new meter size minus the charge set forth in Table 2 for previous meter size. Provided, however, if the meter size is reduced, no credit or refund shall be payable by the city.
(c) Whenever any person applies for a Building Permit to alter, expand or replace a Building or Improvement, even though the subject lands may receive interim service from an entity other than the city, the reserve capacity charges imposed shall be calculated on the entirety of the lands subject to the Building Permit.
(d) No refund or credit shall be afforded an owner or applicant in the event a diminution of use occurs after the water system reserve capacity fee has already been paid.
(C) In the event a property owner who, acting on his own behalf or through an authorized agent, obtains site plan and concurrency approval pursuant to Article 6, of the Hollywood Zoning and Land Development Regulations and Comprehensive Plan for a development that is determined to require in excess of .15 mgd of capacity in the water treatment plant, he may, within 90 days of the site plan approval, enter into a reservation agreement with the city that reserves the approved concurrency capacity specified in connection with the site plan approval. The property owner shall make full payment of all the water reserve capacity charges at the time of the reservation in cash or in cashier’s check. In the event any such property owner elects not to enter into a reservation agreement or in the event a development which has received site plan approval requires less than .15 mgd of capacity, then capacity will not be reserved and any such property owner shall pay all capacity charges in cash or by cashier’s check at the time of initial building permit issuance or in accordance with the scheduled time payment provisions as set forth in division (A) above.
(D) An approved reservation agreement shall not remain valid beyond the date that a site plan approval or extension thereof expires.
(E) A reservation agreement shall reserve capacity as set forth in such agreement for a particular property for which a reservation agreement has been approved and for which a reservation capacity charge has been paid as determined by the Director of the Department of Planning and Development Services. Reserve capacity will be determined on a first come- first serve basis; provided further, that no vested rights shall accrue to the property owner until the city makes its determination that capacity exists at the time the initial building permit is issued.
(F) In the event a project, for which a reservation agreement has been entered into and reserve capacity charges have been paid, is abandoned in whole or in part as defined in division (G) below, or a project is completed using less than all of the reserve capacity that has been paid for, the city shall, upon request by the owner or consumer, and may at its own option, refund the reserve capacity charge to the consumer. The amount of the reserve capacity charge to be refunded shall be the lesser of the reserve capacity charge paid to the city or 75% of the reserve capacity charge in effect at the time of the refund. The refund by the city of the reserve capacity charge as provided herein shall cancel the reservations in the city’s water treatment plant to which such a refund is applicable. In the event such abandoned or expired project is revived, the owner or consumer shall apply and pay for a new building permit and associated reserve capacity charge in full.
(G) For the purpose of division (F) above, a project will be determined to be abandoned in accordance with the following:
(1) If capacity has been reserved pursuant to division (A), a project shall be deemed to be abandoned if the building permit has expired and was not renewed within 90 days of expiration;
(2) If the capacity has been reserved pursuant to division (C), a project shall be deemed to be abandoned if the site plan approval, including any extensions thereto for the project has expired.
(H) Any controversies arising with respect to this section shall be determined by City Manager. The City Manager’s determination may be appealed to the City Commission where such determination can be demonstrated to be inconsistent with the provisions of this chapter.
(I) Condominiums are classed by type of development; apartment, townhouse, and the like.
(J) Irrigation is based on one-inch per week.
(K) All reserve capacity charges collected shall be deposited in the water and sewer enterprise fund and retained in a special account for water treatment plant reserve capacity. Moneys retained in said account shall be expended only for the purpose of extending, over- sizing, expanding, separating or constructing new additions to the water treatment plant and facilities.
(‘72 Code, § 36-4.1) (Ord. O-79- 17, passed 5-2-79; Am. Ord. O-89- 49, passed 8-9-89; Am. Ord. O-90- 33, passed 9-5-90; Am. Ord. O-90- 51, passed 11-7-90; Am. Ord. O-91-22, passed 4-17-91; Am. Ord. O-91-45, passed 7-24-91; Am. Ord. O-92-15, passed 3-18-92; Am. Ord. O-92-35, passed 7-15-92; Am. Ord. O-92-53, passed 10-21--92; Am. Ord. O-92-58, passed 11-4-92; Am. Ord. O-93-09, passed 3-3-93; Am. Ord. O-93-36, passed 9-1-93; Am. Ord. O-93-49, passed 10-20-93; Am. Ord. O-95-10, passed 2-15-95; Am. Ord. O-95-38, passed 7-19-95; Am. Ord. O-96-02, passed 1-17-96; Am. Ord. O-2005-04, passed 5-4- 05; Am. Ord. O-2009-14, passed 6-3-09; Am. Ord. O-2011-15, passed 5-4-11; Am. Ord. O-2019-18, passed 9-18-19)