The URL can be used to link to this page

Home My WebLink AboutVII (B) Refinance of 1993 Utility Bond Issue and Proposed Projects to be Constructed with the Available Funds Agenda 2-18-2003 be�eu Lit, Item VII B VI S nor e'umm issionr rs S. Sk'ott A tndt rgri CL warn,. JL:. „. Danny Howell District I t�` Scott. Anderson, District 2 CID Al anaacr. ltu tv Johnson. Dr I itt :3 inn Gleason ia .� Nancy1. lancet District I MEMORANDUM DATE: January 10,2003 TO: The Honorable Mayor and Board of City Commissioners FROM: David A. Wheeler, P.E. Director of Public Works SUBJECT: Refinance of the 1993 Utility Bond Issue and Proposed Projects to be Constructed with the Available Funds Ocoee has received letters from Florida Department of Environmental Protection (FDEP) concerning the condition of the Jamela water treatment plant and elevated tank. In addition, the City's permit with FDEP on the wastewater system is limiting our disposal capacity because we do not have an adequate wet-weather disposal site. Continued expansion of the reuse system will also help the wastewater permit issue, but a wet-weather site would still be needed. The City's Consumptive Permit with St. Johns River Water Management District (SJRWMD) has been an ongoing issue for many years and the expansion of the reuse distribution system will help the City reach compliance. As with the Stormwater Loan and the General Obligation Bonds, the Finance and Public Works Department have looked at the 1993 Utility Bond Issue concerning refinancing to either lower debt service payments or extend the term of the bonds and gain extra capital, which could be used on projects to improve and enhance the City's utility systems. The refinancing of the Utility Bond Issue will allow the City to realize approximately $4,400,000 based on current interest rates. This refinanced money plus approximately $2,000,000 remaining in the 1997 Utility, will help the City resolve most of its outstanding regulatory issues with the FDEP, Water and Wastewater Programs, and the SJRWMD. Representatives of Professional Engineering Consultants, Inc. will make a presentation on the regulatory issues and the proposed projects. Staff recommends that the Mayor and City Commission authorize Staff to proceed on the projects listed in the presentation to get them designed and constructed to resolve the regulatory issues with FDEP and SJRWMD. Based upon the availability and magnitude of the funds from the refinancing of the bond issue, Staff recommends that the Mayor and City Commission authorize staff and First Southwest, Inc. to proceed with the refinancing of the bonds to gain as much money as the market will bear. City of Ococc •150 N Lakeshore Drive • Ocoee Florida 3476I phone:(407)905-3100 • far: (407)65642504 •wee ci ouncetl u,s ftG 111111 fiM4 )111M1 • eiMit et) i- . S'''' r:, (--, ,., ...• ,\O ii, .. - eillths 11111.11% a a** . n"::... . ,. . . .. . . y t.,21. .. M O,...••• ,. .:„:.... .. .. ciir ...._ . .. • • . /ram astir/ .. ..... ..: ,:•.;. ,,, =111 filit) . fillp fill1) i St rn 0 ° • Water & Sewer Utility Issues + Regulatory Agency Issues + Capital Improvement Needs + Funding Alternatives PEC Regulatory Issues : Wastewater System + Permit Limitations • Wastewater Treatment and Effluent Disposal Permit Renewed — September 2002 ( FLA010815 ) • 5 Year Permit • Valid Through August 30 , 2007 • Treatment — 3. 0 MGD • Effluent Disposal — 1 . 602 MGD PEC oNE Wastewater Treatment & - . � Disposal Permit ❖ Problem ■ Wastewater Flow Limited to 1 . 602 MGD Due to Effluent Disposal Issues Category 19111 Permitted Capacit On-Site Percolation Ponds jib 0.350 MGD Golf Course Irrigation Plus Pond 0.250 MGD 11111 Reclaimed Water System 0.752 MGD Wet Weather to Winter Garden 'Willi0250 MGD TOTAL inimpf 1 .602 MGD 4q. ■ Current Flow Averages 1 . 7 MGD • Adding 400 New Connections per Year ( 108 , 000 gallons per day) PEC Wastewater Treatment & Disposal Permit ❖ Immediate Needs ■ Create Additional Wet Weather Disposal (short-term) • 3 Days of Average Daily Flow: = 3 x 1 .7MG = 5. 1 +/- Million Gallons ■ Create Additional Effluent Disposal Through Expansion of Reuse System or Create New Percolation Ponds • Long-term Need to Create a Total of 3. 0 MGD of Effluent Disposal Plus up to 9 . 0 Million Gallons of Wet Weather Disposal PEC .. 4.... , Wastewater Treatment Disposal ❖ Step ( 1 ) ■ Wet Weather Disposal Capacity* Can Be Created by Joining Winter Garden and Apopka in Regional Reuse System Project Cost Total Cost map Ocoee's Portion of Cost Design $262 000 $87 340 ligumConstruction $3,000.000 $1 000 000III Annual O&Mdalimp $90 000 r $30.000 Ai 4 , Schedule Design completed May 2003 ---jim Construction July 2004 Start Up [September 2004 AMIMIIIIIIIIIIIII * Up to 9.0 MGD of Disposal and/or Wet Weather Disposal Page 6 PEC • Wastewater Treatment & Disposal Permit ❖ Step (2) ■ Expand City's Existing Reclaimed Water System (Northern Reclaimed Service Area — North of SR 50) iiiiSubdivision (Units) Disposal Capacity_ Cost Schedule 11 (9pd) (Construction) Reflections (159) 120.000 $500,000 jr-July 2004 • Waterside (149) 11111.110 70.000 $450,000 MA' July 2004 Silver Glen (246) 1111.111111M 135.000 gilaik S750,000 July 200',._ Reserve (92) 115,000 111100$500,000 July 2004 „ Vintage of Lake Lotta (N/A) MI 40,000 Mit $50.000 Dec. 2003 • West Oaks Towne Center (N/A) 40.000 $10.000 iiiiMpec. 2003 • Entrance Features (N/A) Alb 30,000 $40 000 Mec. 2003 TOTAL 550,000 gig $2,300,000 PEC _ „ Wastewater Treatment & Disposal Permit ❖ Step (3 ) ■ Winter Garden Currently Delivering 0 .654 MGD of Reclaimed Water to Golf Course (Actual Flow Dependent Upon Wet Weather Disposal Needs. A disposal capacity of 0. 750 MGD was dedicated to Winter Garden for irrigation at golf course by FDEP) : This agreement may need to be modified enabling Ocoee to have entire disposal capacity of golf course. PEC Southern Reclaimed Service Area ❖ South of SR 50 Along Maguire Road , City is Constructing a Reclaimed Pump Station to Receive Reclaimed Water from Consery II ❖ Will Provide Service to Brookstone, Key Isle, and Maguire Road Medians and Entrance Features ❖ Per Agreement, City Obligated to take +/- 4. 5 Million Gallons Per Week from Consery II by 2003 • Cost $1 .5 Million (estimated construction cost) • Schedule - April 2004 ■ Note: This will not help with disposal capacity at City existing wastewater plant but will help with consumptive use / water demand issues (CUP Permit). PEC ioghp , Water System •:• Problems • City is Exceeding Consumptive Use Permit (CUP) Conditions (item 16 of CUP dated 12/10/1996) for Withdrawal of Potable Water (Letter Dated 1 /22/2002) (Permit is Valid Through 12/10/2006) ■ Max Day Permit 7. 1 MGD ■ Max Day Actual 8.02 MGD ( 13% Above Permit) ■ Notice of Violation from FDEP Concerning Jamela Water Plant dated November 7. 2002 and November 12, 2002. • Jamela Water Plant is in Poor Condition and Needs to be Repaired, Replaced or Removed from Service. PEC (..) W Z. 4D O a) o Q -c • - O i o 5 0WN �U .� O Q) con (0 - = c c o U E a) c o ca -� -� — CD &') n c 73 .-.+ -0 a) o _C � U � a3 O oo � � � W � .� L z cL U) 4-0 (� E - O v, a) -D a) O o ' U N O E a, 4- co O � U �� = �, U) a� o CD O ;-z -o C -0 � CL -0 (132 0 -4.... E •z-," � � R o o a) an a) L- E o n ci c� eL U O > U CO o 0 c L_ o ou v E � a) • -0 a) U Q w5U) UU w � ° Dv O • w pl0' •� • • __ _ . -t . ame a a er an ... . .. 2 a .. . - Existing Elevated Storage Tank .- Remove Re s lace ost $200 000 "eplace $1 000 000 Plus • ':,100.000 Annual Maintenance '" schedule January 2005 anuary 2005 Replace Existing Pumps Cost $350 000 Schedule January 2005 Rehabilitate Existing Ground Storage Tank ("Crom" Tank) a L ost $100.000 ..chedule January 2005 otal $650 000 (Remove Elevated $1 .450.000 (Replace Elevate•_ ' Tank. Replace Pumps Tank. Replace Pumps. Rehabilitate Existing Ground Rehabilitate Existing Ground Storage Tank) Storage Tank) ,o"e_ ' us-a- IS,i i i rival maintenance cost. . PEC, . . , _ : Page 1 Priorityof N •:• Rehabilitate Jamela Water Plant ($650,000) •:• Participate in Regional Reclaimed Water system (Apopka, Winter Garden to Create Wet Weather and Effluent Disposal) ($1 , 100,000) • Wet Weather 9.0 MGD • Effluent Disposal 9.0 MGD •:• Expand Northern Reclaimed System to Create Additional Reclaimed Effluent Disposal (new subdivision) ($2,300,000) •: Expand Southern Reclaimed System (Consery II) to Assist with CUP Compliance (Maguire Road and Professional Parkway Corridor) ($2,540,000) (These projects are already designed and ready for bidding) PECPage 13, ....., . , Capital Needs. t ,........ - . .... ..... ... ., amela WTP Rehabilitation $650,00 popka Reclaimed Connection $1 ,100,000 I Expansion of Northern Reclaimed Service Area $2,300.00 * .. • Expansion of Southern Reclaimed Service Area * .. $2,000.00 Expansion of Reclaimed Watermain Along Professional Parkway $540,00 • Total 110$6,590,0_01 l 4 PEC Fund Balance / Sources Balance of Water and Sewer Bond Issue $2,000,000 :'Refinancing Funds • $4,400,000 otal $6,400,000 — s Page 15,. . _ PEC 4.410 Financing of Priority Needs ❖ Refinance Existing Bonds to Develop Capital Funding Source + Develop Inclined Water Rates to Implement Conservation + Develop Methods to : • Fund Operations and Maintenance • Replenish the Reserve Funds • Provide for Future Capital Improvements (Expenses are Increasing at a higher level than Revenues are Increasing) PEC Page