HomeMy WebLinkAboutIII (F) Authorization to Transfer Funds from Reserve Contingency in the Water/Waste Water to Cover Overrun in Florida Central Railroad Permits Agenda 9-17-2002
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Mayor ,she Art, Cmnmiasionore Item III F
S.Scott A andergrifi. A$.,a� w diti - Danny Howell, District 1
Scott Anderson, District 2
( hamper �� J7 Rusty Johnson,District 3
Jim Gleason 'AI (/ Nancy I Parker. District d
MEMORANDUM
DATE: September 10, 2002
TO: The Honorable Mayor and Board of City Commissioners
FROM: David A. Wheeler, P.E.
Assistant City Engineer/Ujtilities Director
SUBJECT: Authorization to Transfer of Funds
from
Reserve for Contingency in the Water/Wastewater Fund
to cover
Overrun in Florida Central Raiiroaa Ferrniis
In 2000, the Florida Central Railroad raised its yearly right-of-way crossing fees and also
staffing charging fees for crossing that had not previously been invoiced for in past years. The
original yearly fees had been of varying amounts from no cost to $400 per year for each water,
sewer, stormwater, and road crossing. The new fees are $800 per crossing. There are twenty-
five pipeline crossings for the water and sewer systems, four pipeline crossings for the
stormwater system, and seven road crossings.
The City, through Foley & Lardner, attempted to negotiate with the Florida Central Railroad
about this issue in regards to the increase and for starting on others that had been at no cost
over the past eighteen months. Foley & Lardner advised the City, that the Florida Central
Railroad crossings are granted by licenses and that those licenses terminable at will allow for
the charging of fees as determined by the railroad and that they have the right to terminate
those licenses and require the City to remove its facilities. Unfortunately, the City is not in an
advantageous position with these licenses, therefore until something changes the City should
pay the fees.
The City has been paying Florida Central Railroad for the crossing fees for which there has
been no question of the fees. The road crossing fees were covered from the General Fund and
the stormwater crossing fees were covered under the Stormwater Utility Fund from operating
accounts. However the Water and Wastewater Utility Fund operating accounts were unable to
cover the extra expense for the fees for all the crossings that were in question for the past three
years. The amount of the fees is $13,600. The Reserve for Contingency in the Water and
Wastewater Fund has over $59,000 in it at this time.
Staff recommends that the Mayor and City Commission authorize the transfer of $13,600 from
the Reserve for Contingency in the Water and Wastewater Fund with $10,400 going into the
Water Operating account and $3,200 going into the Wastewater Operating account to pay for
the Florida Central Railroad yearly crossing fees.
City of Ocoee• 150 N Lakeshore Drive •Ocoee Florida 34761 �!
phonic (407)905-3100 • fax (407)656 3504•www ci.ococenus
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