Florida Governmental Utility Authority

Board Agenda Item

Thursday, February 19, 2009

 

SM 4 Status Update on the Lehigh Acres Utility Expansion Project – Mandatory 

Wastewater Connections

__________________________________________________________________ 

Summary 

As part of the analysis of future utility expansion in Lehigh Acres, a number of properties 

have been identified as being located adjacent to existing FGUA wastewater facilities, which 

places them within the guidelines for mandatory connection under Chapter 381.00655, 

Florida Statutes. 

Attached you will find a staff report which includes a set of proposed policies to guide 

mandatory wastewater connections in all FGUA systems, and a proposed connection 

program for the identified 166 residential connections in Lehigh Acres. There are also 

commercial properties that will fall under the mandatory connection criteria. However, staff is 

still identifying these locations, and these properties will be brought to the Board for separate 

consideration in the near future. 

The proposed Lehigh Acres residential connection program includes the following provisions: 

• Properties must connect within 365 days of formal notice of service availability; 

• Properties must connect within 90 days if the septic system is in need of repair or 

replacement; 

• Estimated costs ranging from $5,130 (typical case) to $15,130, including costs to 

abandon the septic system and connect from right-of-way to clean-out; 

• Financing/payment options which include 2-year interest free, 5-year interest free 

(hardship only), and a 15-year with interest option, as well as the lump sum payment 

option; 

• Preliminary discussion of how the FGUA may fund/finance the project; and 

• A proposed project schedule. 

Recommendation 

This is an information item only. It is anticipated that the proposed mandatory connection 

program will be presented for action at the March Board meeting. 

Budget Impact 

Project Number: Previous Balance: $ 0.00 

 Fund Number: Project Cost: $ 0.00 

 GSG Admin. Fee: $ 0.00 

 Remaining Balance: $ 0.00 
 2

FGUA Agenda Item 

February 19, 2009 

Lehigh Acres Mandatory Wastewater Connection Program 

 

 

Background 

In order to fully understand the immediate policy decisions facing the FGUA Board related to 

mandatory wastewater connections in Lehigh Acres, it is important to understand the 

background of the development of the community and how the development patterns have 

impacted the provision of utility services. More importantly, the Board should understand the 

scope of the future challenges of providing utility services to the community and the difficult 

policy decisions that will be necessary. 

 

The following are some key points related to the history and growth of Lehigh Acres that will 

help place the utility challenges into the proper context: 

• Lehigh Acres was developed as a residential platted lands community with over 130,000 

platted lots covering approximately 95 square miles. It is estimated that only 30% of this 

area is developed today. 

• Lehigh Acres has grown rapidly with the current population approaching 80,000, and 

with a build-out population estimated to be over 300,000. 

• Central water and wastewater services, provided by the FGUA, are available to only a 

small portion of the properties in Lehigh Acres, with approximately 30% currently served 

by public water service and approximately 15% served by central wastewater service. 

• Much of the recent growth in the community is served by private potable water wells and 

septic systems. As an example, in 2006 alone there were over 6,500 new private well 

permits in Lehigh Acres, while the FGUA has added only ~2,000 new water customers 

since acquiring the system in 2003. 

• The Florida Department of Health estimates that over 25,000 septic tanks have been 

permitted in Lehigh Acres. 

• There is a growing concern about the potential environmental problems related to 

declining aquifer levels and potential contamination of groundwater supplies as the 

community grows. 

There has been a community planning effort (Lehigh Acres Comprehensive Planning Study) 

under way for the past couple of years that has evaluated numerous community issues and 

has issued a report that clearly recognizes the need to expand central water and sewer 

services. The major challenge facing the FGUA will involve a) developing a rational plan to 

expand water and wastewater services to the community in conjunction with the goals and 

objectives of the planning study, and b) identifying funding sources to implement such a 

plan. The timing of the plan will also be critical due to the current economic conditions and 

the economic health of local property owners. Staff suggests that the Board consider a series 

of discussions/workshops later in 2009 to begin the discussion to develop a plan for the 

larger issue of water and wastewater service expansion in Lehigh Acres. 
 3

Mandatory Wastewater Connections 

 

With regard to the immediate issue of mandatory wastewater connections, during 2008 staff 

developed a preliminary connection program to discuss with the Board of Directors in early 

2009. In January, the staff made a presentation to the Lee County Board of County 

Commissioners to update them on the activities of the FGUA. At this meeting it was 

communicated very clearly that the Board of County Commissioners expects the FGUA to 

actively enforce mandatory connection to the wastewater system. Since the meeting with the 

Lee County Board of County Commissioners, FGUA staff has: 

o Verified the residential properties subject to mandatory connection laws; 

o Provided preliminary courtesy notices to the affected property owners; 

o Refined the estimated costs to the affected homeowners; 

o Developed financing options to assist the homeowners; 

o Inquired with Lee County Human Services regarding potential CDBG eligibility for 

homeowners; 

o Reviewed all pertinent Lee County policies & procedures; 

o Prepared draft policies and connection program recommendations for FGUA Board 

discussion in February. 

It is important to note that staff has only included residential properties in the initial 

implementation phase of the program. Field work is currently underway to identify the 

commercial properties that would meet the statutory definition for mandatory connection, 

and a recommended expansion to the program to include the applicable commercial 

properties will be presented to the Board in the near future. 

Recommended Policies for Mandatory Wastewater Connections 

Since the FGUA does not currently have adopted policies regarding mandatory connections, 

staff has prepared a set of policies (see Exhibit A) for the Board’s review and consideration. 

These policies would serve as the guidelines for mandatory connections in all FGUA systems. 

These policies are consistent with the requirements of Florida Statutes and address such 

issues as: 

 

o Criteria for defining the properties subject to mandatory connection; 

o Time allowed for property owners to connect after receiving formal notice of availability; 

and 

o Requirements for notifying property owners of service availability. 

Proposed Lehigh Acres Mandatory Wastewater Connection Program 

Residential Properties Affected and Timeframe for Connecting

The current number of residential properties subject to mandatory wastewater connection 

requirements in Lehigh Acres is 166. These properties are detailed in Exhibit B and the 

geographic distribution is shown on Exhibit C. Pursuant to Florida law, the properties will 

have 365 days from the date of formal notification of service availability to connect to the 

system. If a property has a septic system in need of repair, the connection must be made 

within 90 days of notice of availability. 
 4

Estimated Costs for Homeowner

Table 1 outlines the estimated costs of connection to the homeowner, including the various 

FGUA fees and charges, as well as the “private property” costs of abandonment of the septic 

tank and connection from the right-of-way to the clean-out. The table shows a wide range of 

potential costs to the homeowner. This is primarily due to the uncertainty related to the 

wastewater lateral installations. The FGUA fee for wastewater lateral installations is the 

actual cost of installation, with a minimum charge of $700. Severn-Trent staff, as well as 

local plumbers that staff has spoken to, believe that most of the subject properties already 

have the laterals installed. In those cases, the costs should approximate those outlined as 

“Minimum Costs/Charges” in the table below. However, if the lateral is not installed, the 

costs will be higher, and depending upon the characteristics of the lot and location of the 

sewer line, the lateral installation could cost as much as $10,000. 

Table 1 

Lehigh Acres Single Family Estimated Wastewater Connection Costs 

Description

Minimum 

Costs/Charges

Maximum 

Costs/Charges

Capacity Impact Fee $2,840 $2,840 

Wastewater Service Deposit $80 $80 

* Wastewater Lateral Installation $0 $10,000 

Wastewater Lateral Inspection $90 $90 

Service Initiation Fee $20 $20 

 

Total Estimated FGUA Connection Charges $3,030 $13,030 

** Estimated private property costs; (including

septic tank abandonment and installation and

connection of pipe from right-of-way to the clean

out) 

$2,100 $2,100 

Total Estimated Costs to Homeowner $5,130 $15,130 

* Indications are that most of the sewer laterals are already installed for the properties in question. If a lateral 

installation is required, there is an additional lateral installation fee which is the actual cost of the installation with 

a minimum fee of $700/ERU. In certain circumstances this cost could be as much as $10,000. 

** Estimate is based upon sample properties with estimates provided by licensed plumbers. 

Financing/Payment Options

As shown in the previous section, the costs of connecting to the FGUA system are not 

insignificant and are likely to represent a substantial financial burden for many of the 

affected property owners, especially in today’s economic environment. Staff has prepared 

the proposed financing/payment options in an attempt to outline a range of alternatives that 

will provide short-term and long-term alternatives, as well as address the statutory 

requirements for financing options that must be afforded to property owners mandated to 

connect to public wastewater systems. It is also important to note that staff is recommending 

that the multi-year financing options include the opportunity for the homeowner to finance 

the total cost of connecting to the wastewater system, including the costs associated with 

the septic tank abandonment and pipe connection costs. To address these “on-site” costs, it 
 5

is anticipated that the homeowner would be responsible to select the vendor from a list 

supplied by the FGUA for completion of the work. The homeowner would then present the bill 

for the work to the FGUA for payment or reimbursement. This amount would then be included 

in the total amount to be financed by the FGUA under the selected financing option. 

Table 2 below provides a breakdown of the financing/payment options and the estimated 

payments associated with each option. 

Table 2 

Lehigh Acres Mandatory Wastewater Connection Financing/Payment Options 

Financing/Payment Option Minimum Estimated Cost Maximum estimated 

Cost

Cash Payment 

(one-time lump sum) $5,130 $15,130 

2-Year Interest Free 

(monthly payments) $213.74/month $630.40/month 

5-Year Interest Free (hardship only;

monthly payments) $85.50/month $252.16/month 

15-years with Interest 

(Annual assessment) $587.31/year $1,732.23/year 

Note: 15-year option includes interest at 6.45% and estimated assessment administration costs. 

1. Cash Payment Option – Under this alternative, the homeowner would pay the appropriate 

fees/charges to the FGUA in a lump sum payment, and would contract with and pay the 

vendors necessary to complete the abandonment of the septic tank and complete the 

connection from the right-of-way to the clean-out. 

2. 2-Years Interest-Free Option – Section 381.00655(1) (a), Florida Statutes requires that 

“the owner shall have the option of pre-paying the amortized value of required 

connection charges in equal monthly installments over a period not to exceed 2 years 

from the date of initial notification”. Under this alternative, the homeowner would pay 24 

equal monthly installments to the FGUA on an interest free basis. This option would be 

available to any affected property owner under this program. 

3. 5-Years Interest-Free Option – Section 381.00655(2)(a), Florida Statutes states that 

“any connection fee charged...may be paid without interest in monthly installments, over 

a period of time not to exceed 5 years from the date the sewerage system becomes 

available if it determines that the owner has demonstrated a financial hardship”. The 

statutory language does not mandate that this option be provided or that it be set at the 

maximum period of 5 years. However, in light of the severity of the economic downturn in 

southwest Florida, staff felt it was prudent to extend this option at the maximum level 

authorized by the Florida Statutes. Under this alternative, the homeowner would pay 60 

equal monthly installments to the FGUA on an interest free basis. This option would be 
 6

available only to affected property owners that would qualify as a financial hardship. It is 

staff’s recommendation that “financial hardship” be defined to include homeowners who 

can demonstrate that they are on one or more public assistance programs at the time 

that connection is made. 

4. 15-Years with Interest – This option is intended to provide affected property owners with 

a long-term financing option for the mandatory connection costs. It is contemplated that 

under this option the FGUA would place an assessment on the affected property and 

would collect the assessment annually through the tax bill process for 15 years. The 

assessment would include all of the connection costs, as well as applicable interest 

charges and assessment-related administrative costs. This option would be available to 

any affected property owner under this program. 

FGUA Project Budget/Financing Plan

It is estimated that the total amount of the connection costs related to the subject 166 

residential properties will total between $850,000 and $1,700,000, depending primarily 

upon the number of laterals that will need to be installed. Preliminarily, staff believes that the 

FGUA financial plan for this project should be structured generally as follows: 

o Under the 2-year and 5-year interest-free options, the fees/charges owed to the FGUA 

would simply be collected on a monthly basis over a 24 or 60 month period. For items 

that require actual capital expenditure to complete the connection (lateral installation, 

abandonment of septic tank, and connection from right-of-way to clean-out), the FGUA 

would utilize either existing reserve funds or the 2007 Line of Credit. 

o Under the 15-year option, the entire amount of the connection costs would be 

“borrowed”, utilizing either existing lines of credit, or establishing a new credit 

mechanism, and the applicable fees/charges would be paid into appropriate FGUA 

accounts. The debt-related costs incurred by the FGUA would be passed along to the 

homeowner connecting to the system and placed as an assessment on the annual 

property tax bill. 

Staff is in the process of establishing a more definitive financial plan and will be exploring 

other credit options, including internal financing options, re-prioritization of existing budget 

and CIP, and discussions with lending institutions. Staff would anticipate a more definitive 

program to be presented to the Board at the March meeting. 

General Project Schedule

February 2009 FGUA Board information item on proposed connection program 

March 2009 FGUA approval of the program 

March-April 2009 Finalize recommended vendors and financing arrangements 

April 2009 Public meetings in Lehigh to explain the program details 

April 2009 Formal notice to affected property owners 

May-June 2009 Begin connecting those who would like to connect 

 immediately 

July 2009 Deadline to connect for those with non-functioning septic systems 

April 2010 Deadline for all other residential connections
i

Florida Governmental Utility Authority 

Wastewater System Mandatory Connection Policies

1. Purpose and intent

It is the purpose and intent of these policies to guide the FGUA in its actions to apply and 

enforce both state and local regulations requiring mandatory connection to the applicable 

FGUA wastewater system. 

2. Definitions.

a. Abandon shall mean the abandonment of existing Onsite Sewage Treatment 

and Disposal System (“OSTDS”) according to Section 64E-6.011, Florida 

Administrative Code. 

b. Available shall refer to that portion of the applicable FGUA Utility System (the 

“Utility’) that is capable of being connected to the plumbing of a residential 

subdivision lot, a single or multi-family residence, or an Establishment, 

provided that: 

i. The Utility is not under a Florida Department of Environmental 

Protection moratorium. 

ii. The Utility has adequate permitted capacity to accept the sewage to be 

generated by the residence or Establishment. 

iii. For a residential subdivision lot, a single-family residence, or an 

establishment, any of which has an estimated sewage flow of 1,000 

gallons per day or less, a gravity sewer line to maintain gravity flow from 

the property's drain to the sewer line, or a low pressure or vacuum 

sewage collection line in those areas approved for low pressure or 

vacuum sewage collection, exists in a public easement or right-of-way 

that abuts the property line of the lot, residence, or establishment.

iv. For an establishment with an estimated sewage flow exceeding 1,000 

gallons per day, a sewer line, force main, or lift station exists in a public 

easement or right-of-way that abuts the property of the establishment 

or is within 50 feet of the property line of the establishment as 

accessed via existing rights-of-way or easements. 

v. For proposed residential subdivisions with more than 50 lots, for 

proposed commercial subdivisions with more than 5 lots, and for areas 

zoned or used for an industrial or manufacturing purpose or its 

equivalent, a sewerage system exists within one-fourth mile of the 

Exhibit A 
ii

development as measured and accessed via existing easements or 

rights-of-way. 

vi. For repairs or modifications within areas zoned or used for an industrial 

or manufacturing purpose or its equivalent, a sewerage system exists 

within 500 feet of an establishment's or residence's sewer stub-out as 

measured and accessed via existing rights-of-way or easements. 

c. Board of Directors or Board shall mean the Board of Directors of the FGUA. 

d. Connection Charges shall generally mean all applicable Utility-imposed fees 

and charges associated with a new service connection, pursuant to the 

adopted applicable FGUA fee schedule. 

e. Establishment shall mean a building or buildings other than a single or 

multifamily residence. 

f. On-Site Sewage Treatment and Disposal System (“OSTDS”) shall mean a 

system subject to Department of Health rule 64E-6, Florida Administrative 

Code, that contains a standard subsurface, filled, or mound drain field system; 

a septic tank, an aerobic treatment unit; a laundry wastewater system; a 

grease interceptor; a dosing tank; a solids or effluent pump; a waterless, 

incinerating, or organic waste-composting toilet; or a sanitary pit privy. 

g. Utility shall mean any real property, attachments, fixtures, treatment plants, 

pumping stations, intercepting sewers, mains, laterals, vacuum lines, pressure 

lines, appurtenances, easements, rights or other real or personal property of 

the applicable Florida Governmental Utility Authority (FGUA) System, used in 

connection with the collection, treatment, purification, or disposal of sewage 

and sewage effluent and residue. 

3. Mandatory Connection to the FGUA System.

a. OSTDS owners shall connect to the Utility when service is available within the 

following time periods: 

i. If the OSTDS is properly functioning, the OSTDS owner must connect to 

the Utility within 365 days after receiving written notification that the 

Utility is available for connection. 

ii. If the OSTDS needs repair or modification to function in a sanitary 

manner or to comply with the requirements of the Florida Department 

of Health, the OSTDS owner must connect to the Utility within ninety 

(90) days after receiving written notification that the Utility is available. 

b. The property owner shall pay the specified connection charges in effect at the 

time of connection to the system. 

Exhibit A 
iii

c. Prior to formal notification of the property owners of the availability of utility 

service, the FGUA shall establish financing and payment options to be made 

available to the property owners subject to these mandatory connection 

policies. At a minimum, these options shall be consistent with the 

requirements outlined in Sections 381.00655 (1) (a) and 381.00655 (2) (a), 

Florida Statutes. 

d. At his/her own expense, the property owner shall properly abandon any 

existing OSTDS, in accordance with guidelines established by the Florida 

Department of Health, within ninety (90) calendar days of connection to the 

Utility. 

4. Notification to Property Owners. 

a. Within 90 days of wastewater service becoming available to properties, the 

FGUA shall provide written notification by certified mail or hand delivery to the 

affected property owners. 

b. This notice shall inform the property owner(s) of the availability of utility 

services, the timeframe in which the connection to the Utility must be 

completed, consistent with the requirements of section 3 above, and shall 

provide an FGUA contact name and phone number regarding where to receive 

further information and guidance. 

c. The notice shall include information pertaining to the estimated costs of 

connecting to the Utility and an explanation of financing alternatives that are 

available. 

5. Administrative Extension of Mandatory Connection Timeframes

a. The Systems Manager of the FGUA may, with the approval of the Department 

of Health, administratively extend the mandatory connection timeframe 

requirements as follows: 

i. Up to a 365 day extension if the wastewater system does not have 

sufficient capacity to serve the additional demand; or 

ii. Up to a 90 day extension if the OSTDS needs repair or modification (see 

Section 3(a)(ii) above), and connection to the wastewater system 

imposes an undue financial hardship if made within the time period 

specified in these policies. 

iii. In order to qualify for undue financial hardship, the property owner 

must furnish evidence that they are receiving public financial 

assistance, as determined by the FGUA, at the time of the requirement 

to connect. 

Exhibit A 
iv

6. Enforcement.

The FGUA shall utilize legally available enforcement mechanisms to ensure compliance 

with state and local mandatory connection requirements. 

Exhibit A 
Item No. 

1 2360 5th St E

2 2820 5th St W

3 2908 5th St W

4 2914 5th St W

5 3002 5th St W

6 3004 5th St W

7 2701 6th St W

8 2817 6th St W

9 2812 7th ST W

10 2814 7th ST W

11 2821 7th ST W

12 706 Altair Ave

13 722 Altair Ave

14 729 Altair Ave

15 218 Ambury St

16 218 Ancona St

17 222 Ancona St

18 1466 Archer

19 726 Ardson Ln

20 728 Ardson Ln

21 750 Arpage Ct

22 717 Arundel Cir

23 721 Arundel Cir

24 723 Arundel Cir

25 725 Arundel Cir

26 733 Arundel Cir

27 735 Arundel Cir

28 739 Arundel Cir

29 741 Arundel Cir

30 743 Arundel Cir

31 745 Arundel Cir

32 750 Arundel Cir

33 755 Arundel Cir

34 761 Arundel Cir

35 764 Arundel Cir

36 766 Arundel Cir

37 768 Arundel Cir

38 219 Aydin Ct

39 221 Aydin Ct

40 202 Bougainvillea E

41 309 Bougainvillea E

42 545/547 Charwood Ave

43 108 Connecticut Rd

44 110 Connecticut Rd

45 114 Connecticut Rd

46 1645 County Club Pkwy

47 1649 County Club Pkwy

48 1683 County Club Pkwy

49 100 Dania Cir

50 224 David Ave

51 230 David Ave

52 234 David Ave

53 246 David Ave

54 250 David Ave

55 104 Davis Rd

56 2402 Del Ray Pl

57 708 Fargo Dr

58 709 Fargo Dr

59 711 Fargo Dr

60 716 Fargo Dr

61 719 Fargo Dr

62 720 Fargo Dr

63 722 Fargo Dr

64 724 Fargo Dr

65 726 Fargo Dr

66 728 Fargo Dr

Site Address

Lehigh Acres System Potential Wastewater Customer Parcels 1/23/09

Page 1 of 3

Exhibit B
Item No. Site Address

Lehigh Acres System Potential Wastewater Customer Parcels 1/23/09

67 731 Fargo Dr

68 732 Fargo Dr

69 736 Fargo Dr

70 740 Fargo Dr

71 409 Glenn Ave

72 1802 Golfside Village

73 27 Greenwood Ave

74 209 Highland Ave

75 213 Highland Ave

76 217 Highland Ave

77 221 Highland Ave

78 807 Hoosier St

79 609 Joel Blvd

80 617 Joel Blvd

81 619 Joel Blvd

82 623/625 Joel Blvd

83 703 Joel Blvd

84 705 Joel Blvd

85 707 Joel Blvd

86 715 Joel Blvd

87 719 Joel Blvd

88 210 Jersey Rd E

89 402 Jersey Rd E

90 401 Joel Blvd

91 403 Joel Blvd

92 1102 Kanza Ct

93 206 Kingston

94 730 Long Lines Ln

95 243 Maison Grande Ave

96 301 Maple Ave N

97 303 Maple Ave N

98 114 Mckinley Ave

99 302 North Ave

100 304 North Ave

101 306 North Ave

102 308 North Ave

103 310 North Ave

104 312 North Ave

105 314 North Ave

106 316 North Ave

107 318 North Ave

108 320 North Ave

109 217 Oregon Way

110 50 Ortona 

111 60 Ortona 

112 70 Ortona 

113 308 Penn Rd E

114 403 Penn Rd E

115 407 Penn Rd E

116 210 Recherche St

117 106 Riviera St

118 111 Riviera St

119 809 Rondelan Cir

120 810 Rondelan Cir

121 811 Rondelan Cir

122 812 Rondelan Cir

123 704 Rue Labeau Cir

124 705 Rue Labeau Cir

125 707 Rue Labeau Cir

126 708 Rue Labeau Cir

127 709 Rue Labeau Cir

128 711 Rue Labeau Cir

129 715 Rue Labeau Cir

Page 2 of 3

Exhibit B
Item No. Site Address

Lehigh Acres System Potential Wastewater Customer Parcels 1/23/09

130 717 Rue Labeau Cir

131 718 Rue Labeau Cir

132 719 Rue Labeau Cir

133 721 Rue Labeau Cir

134 723 Rue Labeau Cir

135 826 Rue Labeau Cir

136 844 Rue Labeau Cir

137 219 Rue Labonne Rd

138 231 Rue Labonne Rd

139 118 Sebring 

140 541 Thomas Sherwin Ave

141 707 Zebu Pl

142 708 Zebu Pl

143 711 Zebu Pl

144 712 Zebu Pl

145 705 Zemil Ct

146 712 Zendor Ave

147 716 Zendor Ave

148 123 Zenith Cir

149 124 Zenith Cir

150 125 Zenith Cir

151 126 Zenith Cir

152 136 Zenith Cir

153 137 Zenith Cir

154 141 Zenith Cir

155 151 Zenith Cir

156 159 Zenith Cir

157 161 Zenith Cir

158 162 Zenith Cir

159 163 Zenith Cir

160 715 Zephyr Ave

161 712 Zeppelin Pl

162 719 Zeppelin Pl

163 124 Zobora Cir

164 128 Zobora Cir

165 132 Zobora Cir

166 142 Zobora Cir

Page 3 of 3

Exhibit B
Lehigh Acres

Interactive Map Viewer

Florida Government Utility Authority

280 Wekiva Springs Road, Suite 2000Longwood, Florida 32779

1 inch equals 5,099.868987 feet μ

Exhibit C