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HomeMy WebLinkAbout08-26-85 WS e MINUTES OF THE CITY COMMISSION WORKSHOP HELD AUGUST 26, 1985 PRESENT: Mayor Ison, Comm. Hager, Comm. Bateman, Comm. Cox (came in at 7:30 p.m.) and Comm. Rodgers (came in at 7:31 p.m.), City Atty. Hayman, City Manager Griffin, and Deputy Clerk Louloudis. ABSENT: None. CALL TO ORDER Mayor Ison called the Workshop to order at 7:17 p.m.. DISCUSSION OF PROPOSED ORDINANCE TO INCREASE WATER RATES e Mayor Ison asked Mr. Griffin to give a summary of the proposed rates. Mr. Griffin stated currently the rates are $4.00 per 5,000 gallons of water, the Ordinance if passed will increase that rate to $5.00 per 5,000 gallons of water. The proposed Ordinance will also increase the present fifty cents per thousand gallons after the minimum to seventy five cents per thousand gallons after the minimum. Mr. Griffin stated approximately 35 to 40% of the bills are the minimum amount. Mr. Bruce Beatty, 311 Hormigas and Mr. Gene Dickerson stated they did not want the rates to increase but they beleived in the concept of each department paying its own way, supporting itself. Mr. Griffin stated the Kissimmee plant needs a filter system installed. Mr. John Cockrell stated the Jamela plant has a problem with the irrigation demand during a drought. Mr. Cockrell also stated that replacing water lines is an on-going maintenance problem. DISCUSSION ON PRIMA VISTA UTILITY COMPANY e Mayor Ison stated the negotiations with Prima Vista have been going on for the last year to year and a half, and now they have come to a point where the City and Prima Vista mutually agree on the report supplied to the Commission. Basically, Prima Vista is asking for 1.5 million is cash, and the proposed purchase price is 3,150,000.00. Mayor Ison stated Prima Vista has agreed to the City of Ocoee paying them a certain percentage of the monies the City would collect from hook up fees, therefore they would be participating in the financing. Mayor Ison stated the conditions of the agreement. 1. The system would consist of the assets discussed, plus the construction of the 1.0 mgd plant expansion at the Prima Vista no. 2. The permitting and construction of the 1.0 mgd expansion would be done in two phases: a. 750,000 gpd permitting and expansion, then b. 250,000 permitting and expansion. 2. The current owners of Prima Vista would purchase 2,500 connections prior to the City purchasing the wastewater system. There would be no time limit on the use of these connections, but these connections will be tied to specific parcels of land. They would have the right to sell the connections in conjunction 1 e e e CITY COMMISSION WORKSHOP AUGUST 26, 1985 PAGE 2 with the land but would give the City the right of first refusal at the then current connection fee being charged by the City. They would reserve 500 additional unit (at no reservation fee) to be provided by the City upon request at the prevailing connection fee charge at the time of purchase, and after the completion of the 250,000 gpd second phase expansion of P.V. 12. 3. Prima Vista will provide temporary operators at cost for a period of time. 4. P. V. U. requests that first consideration for sale of connections by the City would be given to those who have requested capacity from P. V. while negotiations with the City have taken place. Mayor Ison reported that the force main to hwy 50 is complete and the lift station is 90% complete, and it will provide 330 connections. The revenue would come into the City at the time of closing. Mayor Ison asked for some direction, and added there were technical differences to be settled. Atty. Hayman advised the Commission of some statuatory prerequisites the City must beware of. Comm. Bateman thought we needed to look at the cost of maintenance and operation vs. the revenues. Comm. Bateman had doubted whether the City would come out ahead. Mr. Kelley presented a map colored to depict the primary service area, and the expansion site. Mr. Kelley stated there may be sites outside of City limits who want sewer services. In essence, the City must decide how much the plant is worth and make an offer. Mr. Kelley stated a comprehensive summary is being prepared, for the Commission. Mayor Ison asked if there was any information the Commissioners would like to see in the report, or any questions they have. Mr. Kelley is going to try to show the monthly revenues coming in, and the projected operations expense. Mr. Kelley stated sewer is substantially more complex than water because of DER regulations. The City will need an individual who has administrative and management background to deal with DER, PSC, and elected officials. Comm. Cox asked why they were permitted only for one year, was the plant in poor condition. Mr. Hull stated the maximum length of a permit was five years, but he could not explain DER's actions of a one year permit. Mr. Kelley stated Prima Vista is not a conventional municipal plant but there are thousands in the State operated in a satisfactory manner. Mr. Bruce Beatty, 311 Hormigas, stated the study showing the plant may not be up to speed is accurate. Comm. Rodgers commented that he wants to make sure everything is up front with Prima Vista. Mr. Beatty found the report lacking in financial and technical information. Mr. Beatty stated based on figures he received from a report dated August 22, 85, Prima Vista was loosing 20% per year, and he could not project any income for Prima Vista. Mr. Beatty said part of the reason he has fought the rates is because of the inconsistency of data Prima Vista has supplied. Mr. Beatty stated Prima Vista owes Flagship bank in excess of 1 million e e tit CITY COMMISSION WORKSHOP AUGUST 26, 1985 PAGE 3 dollars, plus 12 % interest. Mr. Beatty estimated the citizens have already contributed approximately $300,000 to $400,000, and he would be upset if the City buys the plant twice. Mayor Ison requested the item be put on the agenda for the next regular meeting, and the Commission could go from there. Mayor Ison stated the City could do one of three things. 1. Build our own facility, starting with no revenues. 2. Make some kind of acquisition with Prima Vista, keeping in mind the City is growing and the finance plan is good. 3. Do nothing, which is what we have been doing. Mr. Beatty stated the quality of service Prima Vista has supplied has been satisfactory. Mr. Beatty did not see how the City could break even, according to his projections. Instead of doing nothing, the City could promote and encourage Prima Vista. Comm. Cox would like to see the City controlling its own destiny, and he stated he spoke to 88 citizens who were in favor of the City purchasing Prima Vista. Comm. Cox felt it would behoove the City to pursue the purchase as quickly as possible. Mayor Ison stated he could not say the City will be able to reduce the present rates, if the City purchases the plant. Prima Vista would like to settle this as soon as possible. The meeting adjourned at 8:41 P.?zL (2 /Lv MAYOR ISON ATTEST: ~:l{)~~ DUTY CLERK ULOUDIS ...