HomeMy WebLinkAboutCity of Tamarac Resolution R-2019-020TR # 13240
February 28, 2019
Page 1
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R - 2019-
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC,
FLORIDA, AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO ISSUE A
REFUND IN THE AMOUNT OF TWENTY THOUSAND SIXTY DOLLARS AND
NINETY-TWO CENTS ($20,060.92) TO MURAL DEVELOPMENT LLC WHICH
WAS BILLED INCORRECTLY FOR GUARANTEED REVENUE AND
SUBSEQUENTLY COLLECTED VIA A LOAN CLOSING; PROVIDING FOR
CONFLICTS; PROVIDING FOR SEVERABILITY AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the City of Tamarac received a request from Mural Development LLC to
refund net Guaranteed Revenue Fees mistakenly billed and collected via a loan closing in the
amount of twenty thousand sixty dollars and ninety-two cents ($20,060.92); and
WHEREAS, the Director of Financial Services recommends refunding a net amount of
twenty thousand sixty dollars and ninety-two cents ($20,060.92) to Mural Development LLC as
identified in the attached memo (without attachments), Exhibit 1 and proof of payment, Exhibit
2; and
WHEREAS, City Ordinance Sec. 6-36 Fee refunds, requires City Commission approval
on any refund exceeding one thousand dollars ($1,000.00) and
WHEREAS, the unexpended funds exist in the Utilities Fund; and
WHEREAS, the City Commission of the City of Tamarac deems it to be in the best
r
interests of the citizens and residents of the City of Tamarac to authorize the appropriate City
Officials to refund twenty thousand sixty dollars and ninety-two cents ($20,060.92) to Mural
Development LLC of mistakenly billed and collected Guaranteed Revenue.
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TR # 13240
February 28, 2019
Page 2
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
TAMARAC, FLORIDA THAT:
Section 1. The foregoing "WHEREAS" clauses are hereby ratified and confirmed as
being true and correct and are hereby made a specific part of this Resolution upon adoption
hereof. All Exhibits attached hereto are incorporated herein and made a specific part hereof.
Section 2. That the request to refund twenty thousand sixty dollars and ninety-two cents
($20,060.92) to Mural Development LLC of mistakenly charged and collected Guaranteed
Revenue is HEREBY APPROVED.
Section 3. All resolutions or parts of resolutions in conflict herewith are hereby repealed
to the extent of such conflict.
Section 4. If any clause, section, other part or application of this Resolution is held by
any court of competent jurisdiction to be unconstitutional or invalid, in part or application, it shall
not affect the validity of the remaining portions or applications of this Resolution.
Section 5. This Resolution shall become effective immediately upon its passage
and adoption.
The remainder of this page is intentionally left blank.
C
T R # 13240
February 28, 2019
Page 3
PASSED, ADOPTED AND APPROVED this day of Aid 2019
{
ATTEST: MIC ELLE J% OMEZ, MAYOR
PA TEUFEL, CUI CITY CLERK
Y RECORD OF COMMISSION VOTE:
I HEREBY CERTIFY that I have approved
this RESOLUTION s to form.
S UEL S. GOR CITY ATTORNEY
it
MAYOR GOMEZ
DIST 1:
COMM. BOLTON
DIST 2:
COMM. GELIN
DIST 3:
COMM. FISHMAN
DIST 4.
V/M PLACKO
w.J
CITY OF TAMARAC
INTEROFFICE MEMORANDUM
FINANCE DEPARTMENT
ADMINISTRATION DIVISION
TO: Michael C. Cernech
City Manager
r.
FROM: Mark C. Mason,''
Director of Financial Services
Recommendation:
DATE: February 27, 2018
RE: TR #13240 — Refund of Fees
for Mural Plaza
Exhibit 1
I recommend that TR #13240 authorizing a refund in the net amount of twenty thousand sixty dollars and
ninety-two cents ($20,060.92) to Mural Development, Inc. be placed on the March 27, 2019 regular agenda
for approval by the City Commission.
Issue:
Staff has received a request by Mural Development LLC for a return of Guaranteed Revenue incorrectly
charged and collected by the City in the net amount of twenty thousand sixty dollars and ninety-two cents
($20,060.92).
Background:
The City received inquiries from the owners of Mural Plaza in December 2018 regarding a payoff amount
provided by the City through a lien search as of November 30, 2018 resulting from a loan closing for Mural
Development LLC. The amount of the payoff was $28,105.56 (Attachment 1) and the owners of the
property wanted to understand what it represented.
After follow-up phone calls and discussions, staff met with the owner of Mural Plaza and his project
engineer to discuss what the $28,105.56 represented. After explaining that the payoff amount
represented Utility Guaranteed Revenue and the fact that much of the amount was billed in error, the
owner of Mural Plaza verbally requested a refund in the amount of $20,060.92 representing excess funds
paid through a payoff request over and above the amounts that should have been charged for Utility
Guaranteed Revenue.
Following are definitions of terms used in this memo relating to utilities and utility revenue:
Guaranteed Revenue: refers to a fee paid by a Developer to defray the cost to the City of
maintaining reserve water and sewer systems. The guaranteed revenue is equal to the
applicable monthly service availability charge for water and sewer.
Service Availability Charge: represents the amount necessary to recover the cost of being
connected to the water and system regardles of how much water or sewer is used. It covers
the cost of insuring the availability of the system to the users. This is also known as a Base
Facility Charge and is calculated based on the number of Equivalent Residential
Connections (ERCs) associated with meter size. As an example, a 5/8" meter is one ERC,
while a two-inch meter represents eight ERCs.
Contribution in Aid of Construction (CIAC) Charges: CIAC charges represent a contribution
of the cost of plant facilities and can only be used for or offset the cost of new construction
of the Utility System.
On March 14, 2007, the City Commission approved a Site Plan for Mural Plaza via Resolution R-2007-28.
On May 28, 2008, the City Commission approved a one-year extension for the Mural Plaza Site Plan. On
July 31, 2008, the City began billing Mural Plaza for Guaranteed Revenue however after an exhaustive
investigation of the city's records, no Water and Sewer Developers Agreement had been approved either
following the initial site plan nor after the site plan extension approval to warrant billing Mural
Development, Inc. for Guaranteed Revenue.
On January 14, 2015 the City Commission approved a new development site plan for the Mural Plaza
Shopping Center via Resolution R-2015-05 which is on file with the City Clerk's office. On May 25, 2016,
the City Commission approved a Water and Sewer Developer's Agreement (WSDA) with Mural
Development LLC which started the tolling for the billing of Guaranteed Revenues to be paid six months
following the payment of the Contribution in Aid of Construction (CIAC) Fees associated with the Mural
Development LLC WSDA. The CIAC Fees were paid on August 25, 2016 and Mural Development LLC
received a Certificate of Occupancy for the Mural Plaza Shopping Center on June 12, 2018. Since the City
was already billing a Guaranteed Revenue charge for water and sewer, a new billing for the number of
ERC's approved in the WSDA had not been generated.
Guaranteed Revenues are charged based on the number of ERC's that will service the Site. In the first
instance of billing in July 31, 2008, twelve (12) ERC's were used to develop the fee to charge for water and
sewer. Under the WSDA approved in May 2016, there were eighteen (18) water ERCs for two 1.5-inch
meters and one 2-inch meter, and eleven (11) ERCs for Wastewater comprising two 1.5-inch meters and
one dumpster ERC (Attachment 2).
Following is a chart of the Guaranteed Revenue that should have been charged monthly or portion thereof
based on the approved WSDA on May 25, 2016:
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Mural Plaza Shopping Center
Water and Sewer Developer's Agremement
Guaranteed Revenue Calculation
Equivalent Residential Connections
Total
Number
Guaranteed
of
Revenue
Usage Meters Meter Size
Water
Amount
Sewer
Amount
per Month
Building #1 1 1.5"
5
$ 72.45
5
$ 117.25
$ 189.70
Building #2 1 1.5"
5
$ 72.45
5
$ 117.25
$ 189.70
Dumpster 0 0
$ -
1
$ 23.45
$ 23.45
Irrigation 1 2"
8
$ 115.92
0
$ -
$ 115.92
$ 260.82
$ 257.95
$ 518.77
The following chart provides the Guaranteed Revenue that should have been billed pursuant to the WSDA
from February 25, 2017 through Certificate of Occupancy Date of June 12, 2018:
Period (2/22/17to 6/12/18) to be charged for Guaranteed Revenue:
2/25/17 - 2/28/17 10.7143% of one month $ 55.58
March 2017 - May 2018 15 Months $ 7,781.55
6/01/18- 6/12/18 40.0000% of one month $ 207.51
$ 8,044.64
The following provides the calculated refund to Mural Development LLC and represents the difference
between what was incorrectly charged, and subsequently collected as a payoff on a refinancing, for
Guaranteed Revenue and what should have been charged pursuant to the WSDA approved on May 26,
2015.
Calculation of Proposed Refund:
Amount paid for lien payoff at closing $ 28,105.56
Less Amount due for correct Guaranteed Revenue 8,044.64
Refund due to Mural Development, LLC $ 20,060.92
Based on the information presented, the investigation of events and the requirements by code and the
WSDA Agreement for Guaranteed Revenue between the City and Mural Development LLC, City staff
recommends the City Commission authorize the City Manager or designee to issue a refund to Mural
Development LLC following approval of TR # 13240.
Fiscal Impact:
The fiscal impact is $20,060,92.
3 of 3
f. Exhibit 2
CITY OF TAMARAC * CASH RECEIPTS
REPRINT
*** CUSTOMER RECEIPT ***
Oper: CYNTHIAN Type: OC Drawer: I
Date: 11/09/IB 02 Receipt no: 26339
Customer Location Name Amount
20 21 MURAL DEV LLC
AR ACCTS RECEIVABLE PAYMENTS
$2B105.56
MURAL DEVELOPMENT LLC
Tender detail
CK CHECK PAYMEN 120038 $28105.56
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Trans date; 11/08/18 Time: 13:52:54
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