Submitted By: Rusella Bowes-Johnson
Presentation By: Sean Lanier
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Department: Water & Sewer
STAFF RECOMMENDATION (Motion Ready):
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Introduce Ordinance 2025-26 concerning Chapter 70 of the Code of Ordinances to amend Sections/Subsections 70-301(d)(4), 70-321(b), 70-391, 70-411(a), 70-413, 70-414, 70-417(b) and (c), and adding Sections/Subsections 70-301(d)(5), 70-418 and 70-419
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
In January of 2021, City Council adopted a rate study for water, wastewater and reclaimed water (collectively, Water Utiltity/Utilities) which implemented rates and charges for those services provided by the City of Ocala to its customers. The associated rates and charges were codified at Chapter 70, Code of Ordinances, City of Ocala Florida. Among the provisions of the adopted rate study in 2021 was a “built-in” rate adjustment for future years, ending in 2025. The last update occurred on October 1, 2024.
Following authorization by Council on January 16, 2024, staff engaged Raftelis Financial Consultants, Inc. (Raftelis) to perform a new rate study to develop a revised financial forecast for the future of the City of Ocala’s Water Utilities and to determine what current and future rate adjustments are necessary to ensure that City Water Utilities are adequately funded to align with that financial forecast, including system operations and maintenance as well as funding for capital expenditures, upgrades and expansions.
In addition to the review of the Water Utility rates, staff also asked Raftelis to consider and review miscellaneous utility charges, including, but not necessarily limited to, connection charges, temporary water service charges and meter test fees. In order to support Raftelis’ review of these charges, staff developed a job cost workbook which itemized each cost or service on a per-job basis considering the necessary staff, equipment, materials and supplies for each service.
The result was the development by Raftelis of a series of proposed changes to the charges assessed by the City of Ocala for the Water Utility services provided to our customers. The changes include both adjustments to existing charges and the implementation of new charges for services that have previously been provided without an ability to recoup the costs incurred by the City.
A copy of the proposed ordinance with changes identified (redline) and a clean copy of the proposed ordinance are included in the attachments to this agenda item.
These proposed changes were presented to the Utility Advisory Board on April 16, 2025, and to City Council at a workshop on April 29, 2025.
Following those presentations and in consideration of feedback provided by the Utility Advisory Board and City Council, this ordinance was developed to implement the proposed changes.
FINDINGS AND CONCLUSIONS:
Staff concludes as follows:
1. The City of Ocala Utility Rate and System Development Fee Study, prepared by Raftelis Financial Consultants, Inc. represents a fair and accurate review of the future financial needs of the City of Ocala’s water, wastewater and reclaimed water utility service needs, including the need to recover the current and future direct costs of labor, equipment, materials and supplies related to the provision of water utility services to the City of Ocala’s customers and provides reasonable and necessary rate adjustments and charge implementations to meet those future service needs;
2. The Raftelis rate study and the changes to the charges and fees assessed to water utility service customers of the City of Ocala recommended therein - and as outlined in this ordinance - are appropriate and sufficient to address the costs incurred by the City for the services provided to water utility service customers both now and for the duration of the study review period;
3. The Raftelis rate study and the changes to the charges and fees assessed to water utility service customers of the City of Ocala recommended therein - and as outlined in this ordinance - are appropriate and sufficient to allow the City of Ocala to meet the operational and capital needs - including staffing, the development of new facilities and the materials and supplies necessary for both - of its water utility service customers both now and for the duration of the study review period;
4. The adoption and imposition of the charges and fees contained in the Raftelis study - and as outlined in this ordinance - shifts the burden of these costs from the entire body of water utility service customers to the actual customers responsible for the provision of the services;
5. Adoption of this ordinance and the imposition of the charges and fees outlined therein serves a public purpose; and
6. Adoption of this ordinance and the imposition of the charges and fees outlined therein is in the best interest of and protects the health, safety and welfare of the City of Ocala, Florida and its citizens.
FISCAL IMPACT:
Based on the identified costs to provide miscellaneous utility services, the proposed fee adjustments will provide additional funding to offset the direct expenses to support customer-specific requests.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
The ordinance has been reviewed by the City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with changes
• Deny
• Table
ORDINANCE 2025-XX
AN ORDINANCE OF THE CITY OF OCALA, FLORIDA CONCERNING AND AMENDING CHAPTER 70, ENTITLED “UTILITIES,” OF THE CODE OF ORDINANCES, CITY OF OCALA, FLORIDA; AMENDING SUBSECTION 70-301(d)(4), TO PROVIDE FOR REVISED FEES TO BE CHARGED FOR TESTING INDUSTRIAL WASTEWATER SERVICES; ADDING SUBSECTION 70-301(d)(5), ENTITLED “INDUSTRIAL PERMIT FEES,” TO PROVIDE FOR A FEE TO BE CHARGED FOR PROCESSING INDUSTRIAL PERMITS; AMENDING SUBSECTION 70-321(b), ENTITLED “APPLICABILITY; AMOUNT,” TO PROVIDE FOR REVISED FEES TO BE CHARGED FOR TESTING INDUSTRIAL WASTEWATER SERVICES; AMENDING SECTION 70-391 ENTITLED “DEFINITIONS,” TO PROVIDE FOR THE DEFINITION OF TAMPERING; AMENDING SUBSECTION 70-411(a), ENTITLED “CONNECTION CHARGES - CHARGE FOR SETTING METER,” TO PROVIDE FOR REVISED SCHEDULES FOR RESIDENTIAL AND COMMERCIAL SEWAGE RATE CHARGES AND EFFECTIVE DATES TO BE SET BY SEPARATE CITY COUNCIL RESOLUTION; AMENDING SECTION 70-413, ENTITLED “TEMPORARY WATER SERVICE,” TO PROVIDE FOR REVISED DEPOSITS FOR HYDRANT METERS OR JUMPER METERS; AMENDING SECTION 70-414, ENTITLED “CHARGE FOR TESTING WATER METERS,” TO PROVIDE FOR REVISED FEES TO BE CHARGED FOR TESTING WATER METERS AT A CUSTOMER’S REQUEST; AMENDING SUBSECTIONS 70-417(b) AND (c), ENTITLED “LEAKS; NEW LANDSCAPING,” TO PROVIDE FOR FURTHER CLARIFICATION ON WATER LEAK REIMBURSEMENT; ADDING SECTION 70-418, ENTITLED “DAMAGING, TAMPERING WITH OR PREVENTING ACCESS TO EQUIPMENT OR FACILITIES OF THE WATER SYSTEM,” PROVIDING FOR FINES AND COSTS TO BE ASSESSED AGAINST UTILITY CUSTOMERS WHO TAMPER WITH THE WATER SYSTEM EQUIPMENT AND CURB STOPS; ADDING SECTION 70-419, ENTITLED “MISCELLANEOUS CHARGES,” TO PROVIDE FEES AND CHARGES FOR (1) CUSTOMER REQUESTED MAINTENANCE, (2) DISCONNECT/RECONNECT, (3) WATER METER MANUAL RE-READS, (4) CUSTOMER REQUESTED SITE VISITS, (5) WATER METER DISCONNECTION FOR NON-PAYMENT, (6) WATER METER AND/OR VALVE TAMPERING FEES, AND (7) DEMOLITION PERMIT FEES; PROVIDING FOR SEVERABILITY OF ORDINANCE PROVISIONS; REPEALING INCONSISTENT AND/OR CONFLICTING PROVISIONS; PROVIDING DIRECTION TO STAFF; PROVIDING DIRECTION TO THE CODIFIER; PROVIDING FOR MODIFICATIONS ARISING FROM CONSIDERATION AT A PUBLIC HEARING; AND PROVIDING AN EFFECTIVE DATE.
Section 1. That Subsection 70-301(d)(4) of the Code of Ordinances, City of Ocala, Florida, is hereby amended to read as follows:
(4) Laboratory charges. If the sewage sample tested exceeds any table 2 concentration, charges shall be applied as follows:
a. The cost for collecting, transporting, and analyzing sewage samples for industrial users on a recurring monthly sampling program shall be $40.00 per month.
b. The cost for collecting, transporting, and analyzing sewage samples for ESF users on a recurring quarterly sampling program shall be $40.00 per month.
Section 2. That Subsection 70-301(d)(5) of the Code of Ordinances, City of Ocala, Florida, is hereby added to read as follows:
(5) Industrial Permitting Fees. The industrial permitting fees shall be as follows:
Section 3. That Subsection 70-321(b) of the Code of Ordinances, City of Ocala, Florida, is hereby amended to read as follows:
(b) The service charge shall be the sum of:
(1) The cost for collecting and transporting sewage samples for customers shall be $40.00 per sample event.
(2) The cost of all required sample analysis shall equal the arithmetic average of the current analysis cost as charged by three commercial state-certified laboratories.
Section 4. That Section 70-391 of the Code of Ordinances, City of Ocala, Florida, is hereby amended to read as follows:
The following words, terms, and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Individual means any person, firm, corporation, or other legal entity, whether public or private.
Jumper meter means a temporary water meter connection for measuring water use for water main construction and/or testing purposes.
Multiunit means any residential, commercial, industrial, agricultural, recreational, governmental, or public building or structure which services more than one resident, tenant, business, corporation, or enterprise.
Tampering means unauthorized connection, entrance to facilities, breaking meter seals, cutting of meter wiring, manipulation of metering device, shutting on and off curb stop, connecting to fire hydrant without a City issued hydrant meter, or installation of a device to bypass metering devices which shall subject the customer to immediate discontinuance of service, prosecution under the laws of the state, reimbursement of the utility for all extra expense incurred on the account and an additional deposit will be required before service is restored.
Water means water taken from any connection to the city's potable water distribution system.
Section 5. That Subsection 70-411(a) of the Code of Ordinances, City of Ocala, Florida, is hereby amended to read as follows:
Sec. 70-411. Connection charges.
(a) Charge for setting meter. The charge for setting water meters connected to the city water distribution system shall be in accordance with the following schedule, which shall remain in effect until such rates are changed by the City Council through a separate authorizing Resolution:
Section 6. That Section 70-413 of the Code of Ordinances, City of Ocala, Florida, is hereby amended to read as follows:
Sec. 70-413. - Temporary water service.
The charge for temporary water service, together with the regulations pertaining thereto, shall be in accordance with the following:
(a) The customer shall be fully responsible for the meter during that time the water meter is in the custody of the customer. Any cost incurred in replacing or repair of the subject water meter shall be deducted from the amount of the deposit.
(b) A deposit shall be made in accordance with the following schedule prior to receiving custody of the temporary water meter. This deposit shall be refunded, less the cost of repairing or replacing the meter, if applicable, less the amount due on the final monthly bill.
(c) The monthly bill for temporary water service shall be based upon the following:
(1) For 5/8-inch hydrant meter or jumper meter the monthly charge shall be based upon a base rate of $125.00 per month plus a consumption rate equal to the Commercial/Industrial non-irrigation charge per 100 cubic feet outlined in section 70-416.
(2) For a three-inch hydrant meter or a jumper meter the monthly charge shall be based upon a base rate of $175.00 per month plus a consumption rate equal to the Commercial/Industrial non-irrigation charge per 100 cubic feet outlined in section 70-416.
Section 7. That Section 70-414 of the Code of Ordinances, City of Ocala, Florida, is hereby amended to read as follows:
Sec. 70-414. - Charge for testing water meters.
A fee in the amount of Actual Cost, which amount shall remain in effect until such fee is changed by city council through separate authorizing Resolution, shall be charged for testing water meters at a customer's request if said meter has been tested during the previous 12 months. If the meter is found to be rendering a high reading, resulting in an overcharge to the customer, the fee will be refunded. Charges or credits will be applied to the normal utility billing and are due and payable as are other charges upon receipt of the bill.
Section 8. That Subsections 70-417(b) and (c) of the Code of Ordinances, City of Ocala, Florida, are hereby amended to read as follows:
Sec. 70-417. - Leaks; new landscaping.
(b) Leaks.
(1) This subsection applies to excessive residential or commercial water usage caused by a leak in a water line on the customer's property that occurred before the leak was detected and repaired.
(2) In order to qualify for the adjustment set forth herein:
a. The customer must identify the leak, properly repair it, and provide the director with adequate proof of repair;
b. The excessive water usage must be more than 50 percent of the highest usage for the preceding 12 months;
c. In order to discourage repeated patch repairs of the water line when the line should have been replaced, a customer shall be eligible for only one adjustment at a particular location; and
d. Residential adjustments would be applied to the water usage portion of the utility bill, while commercial adjustments would be applied to the sewer portion of the utility bill.
(3) Rates.
a. The period for the adjustment will not exceed 45 days before the customer notifies the director of the leak. Maximum credit shall be limited to the three most recent consecutive billing cycles.
b. The adjustment will be based on the average monthly water usage during the previous 12 months as follows:
(1) Such average usage will be billed using the normal rate schedule; and
(2) For residential, the remaining consumption will be billed at the rate for 0-1,400 cubic feet of water usage set forth in subsection 70-416(a)(1)a.
c. The adjustment will be based on the average monthly sewer usage during the previous 12 months as follows:
(1) Such average usage will be billed using the normal rate schedule; and
(2) For commercial, adjustment will not be made if the customer is under 5,000 cubic feet of consumption. Credit will only apply to the sewer portion of the utility bill. Billing will be based on subsection 70-416(a)(1)a.
(c) New landscaping.
(1) This subsection:
a. Applies where new landscaping is planted in connection with the construction of a new building or where an existing building is renovated at a cost greater than fifty percent of its appraised value (i.e., not for re-landscaping or for landscaping at other existing buildings); and
b. Shall govern until the construction has received its certificate of occupancy, and in no event longer than 12 months.
(2) In order to qualify for the adjustment set forth herein, the contractor must utilize best irrigation practices in the design and construction of the irrigation system for the most efficient use of water.
(3) The water consumption charge shall be no greater than the rate established for 2,001 - 5,000 cubic feet of water usage set forth in subsection 70-416(a)(1)a.
Section 9. That Section 70-418 of the Code of Ordinances, City of Ocala, Florida, is hereby added to read as follows:
Sec. 70-418. - Damaging, tampering with, or preventing access to equipment or facilities of the water system.
(a) Tampering with water system. Unauthorized connections to or tampering with utility meters, meter seals, fire hydrant, valves, lines, mains, laterals, or metering equipment, or indications or evidence thereof, shall subject the customer to a fine as indicated in Miscellaneous Charges, replacement costs of damaged equipment, and to liability for reimbursement to the utility of all extra expenses incurred as a result thereof, and to discontinuance of service until such indebtedness has been paid in full.
(b) Tampering with curb stop. Unauthorized tampering with curb stop, or indications or evidence thereof, shall subject the customer to a fine as indicated in Miscellaneous Charges, replacement costs of damaged equipment, and to liability for reimbursement to the utility of all extra expenses incurred as a result thereof, and to discontinuance of service until such indebtedness has been paid in full. Florida Certified Plumbers or Contractors must contact the Water and Sewer Department prior to shutting on or off the curb stop. The homeowner will be required to install a shut-off valve 12-18 inches from the meter on the customer’s property.
Section 10. That Section 70-419 of the Code of Ordinances, City of Ocala, Florida, is hereby added to read as follows:
Sec. 70-419. - Miscellaneous Charges.
Miscellaneous Charges. The miscellaneous charges shall be as follows:
Section 11. Severability Clause: Should any provision or section of this ordinance be held by a court of competent jurisdiction to be unconstitutional or invalid, such decision shall not affect the validity of this ordinance as a whole, or any part thereof, other than the part so declared to be unconstitutional or invalid.
Section 12. All ordinances or parts of ordinances in conflict herewith are hereby repealed.
Section 13. Direction to Staff.
The City Council of the City of Ocala, Florida directs staff to take any and all steps necessary to effectuate the adoption and implementation of this ordinance; and all other matters as provided for above and herein as well as to ensure the orderly and effective administration and implementation of the intent of this ordinance and the specific matters outlined herein.
Section 14. Direction to the Codifier.
It is the intention of the City Council of the City of Ocala, Florida that (1) this ordinance shall become and be made a part of the Code of Ordinances, City of Ocala, Florida, (2) the sections and paragraphs of this ordinance may be renumbered or relettered in order to accomplish said intention; (3) terms or headings not affecting the intent of this ordinance may be changed to further accomplish said intention; and (4) any scrivener’s error(s) contained herein which do not affect the intent of this ordinance be corrected with the authorization of the City Manager or their designee and without the need for additional public hearings or consideration by the City Council.
Section 15. Modifications Arising from Consideration at a Public Hearing.
It is the intention of the City Council of the City of Ocala, Florida that (1) the provisions of this ordinance may be modified as a result of its consideration by the City Council of matters that may arise during the public hearing(s) at which this ordinance is considered; and (2) any such modifications shall be incorporated into the final version of this ordinance.
Section 16. This ordinance shall be effective on October 1, 2025.
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs Kristen M. Dreyer
City Clerk President, Ocala City Council
Approved/Denied by me as Mayor of the City of Ocala, Florida, on __________________, 2025.
By: __________________________________
Ben Marciano
Mayor
Approved as to form and legality:
By: _________________________________
William E. Sexton
City Attorney
Ordinance No: 2025-XX
Introduced: Click or tap to enter a date.
Adopted: Click or tap to enter a date.
Legal Ad No: Click or tap here to enter text.