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HomeMy WebLinkAbout09-10-85 SS . CITY COMMISSION SPECIAL SESSION SEPTEMBER 10, 1985 Meeting called to order at 8:03 p.m.. Mayor Ison, Commissioners Cox, Bateman, Hager, City Manager Griffin, and City Clerk Catron present. Comm. Rodgers and City Attorney Kruppenbacher absent. DISCUSSION A. Prima Vista Utilities . Mayor Ison reported to the Commissioners the results of his phone conversation with Norm Rossman, Prima Vista Utilities and Tom Lang, City Attorney reference the counter offer the Commission directed him to make. Prima Vista's response is: 1. Purchase price $3.15 millionj 2. They will come down to 2,150 connections providing we define connections as: 1BR/1BA Apt/Motel utilizing 150 gal/day as 1 ERUj 2BR/2BA Apt/Motel utilizing 200 gal/day as 1 ERU and SFD utilizing 300 gal/day as 1 ERUj and based on those definitions would go for the 85/15% breakdown as we sell the ERU's to recoup revenue to pay back the down payment - then go back to 90/10%j and 3. On selling outright with no taps - they will not sell without the provision for taps. Mayor Ison said they have exchanged letters backing up the verbal communications, and he asked the Commissioners for their thoughts on the counter proposal. . Commissioner Batemasn stated that we may be faced with both plants on A. D. Mims road not percolating at 1.75 million gallons per day and their request for 2,150 ERU's is about 150 strong. He sees nothing wrong with 85/15 for the entire payment of the system. He feels this counter proposal shows their desire to work in good faith. He then asked Engineer Kelley what it would take to get so-called plant #2 to produce gallons we need for on-going sewer system. Engineer Kelley stated they base their position on effluent disposal and Jammal has not drilled any holes/had access to the 40 acres, referred to as the West property. Their very preliminary position - the two sites combined would perhaps yield effluent of 1.4 mgd, was 1.75 mgd to be permitted, anything above the 1.75 mgd would require more land for effluent disposal and we would have to plan for financing. Engineer Kelley, prior to the meeting, presented a Preliminary Technical Report on the evaluation of proposed purchase of Prima Vista Utilities. On page 5 of the report they had projected a cost of $400,000.00 for improvements to the West property but based on the capacity of effluent disposal (950,000 mgd), Prima Vista's estimate of 1.75 mgd needs to be taken with a grain of salt. The $400,000.00 does not include the force main that would have to be built to service Highway 50. There are two different scenarios in computing his figures. There are also other things that have an effect such as sale of connections and monthly service rates. 1 . CITY COMMISSION SPECIAL SESSION SEPTEMBER 10, 1985 PAGE 2 Mayor Ison asked if the price is $3.15 million with $1.5 million down providing PV with 2,000 connections, with the balance of $1.65 million does this give us a chance to have what we need to pay for and level out on this system. Engineer Kelley referred to his report Page 5, item D's 7 & 9 in which he quotes a price of $3.55 million using total available connections of 3,333, and working with the payback at 90/10%, this does not include the force main to Highway 50. The City would require 2800 connections using the 90/10, and the estimated total availability of 3,333 this would only leave 533 for PV owners. Kelley questioned how PV was counting their ERU's - he stated he had not seen it done that way. Mayor Ison stated we needed to get a realistic schedule from them and bring back "apples to apples" comparison. He asked if he should request PV come back with flaws. Commissioner Cox stated that they should refer to page 7 of the report - recommendations made by Kelley. Mayor Ison stated they may not want to do anything tonight as they need a chance to evaluate the report submitted by PEC. . Commissioner Bateman asked if we were saying that we are running the sewer facility for Prima Vista. Mayor Ison did some figuring and came up with a total of $5.5 million using the $3.15 million purchase price, $400,000.00 for force main and $1.5 million for acquiring site 3 - he referred to page 3 item 2 of the report and asked what we would accomplish using table 3 of the report. Kelley stated the City would be in business sooner if they purchased rather than build their own facility. Comm. Cox asked to refer to page 7 of the report and page 6 items 10 & 11 - if you say the total price is $5.5 million and pay the $3.6 million you have to figure the difference. He stated that he has always objected to "giving" away connections. Mayor Ison stated that subject to reading the report - there are three alternatives: 1. continue to negotiate PV purchase 2. empower Tom Kelley and City Manager to look into the feasibility of expanding Industrial Park plant and 3. allow PV to go on and serve the City and negotiate a franchise. . Comm. Hager expressed concern over the force main and possible high surge and peaks. Mayor Ison asked if they could go to a small modular plant and be close to the $1.5 million previously discussed for force main - take the industrial plant at .5 mgd and go off site somewhere to .6 mgd effluent disposal. Engineer Kelley ~ 2 . CITY COMMISSION SPECIAL SESSION SEPTEMBER 10, 1985 PAGE 3 stated he would have to run the numbers and they would have to go North of Ocoee. Mayor Ison asked the Commissioners if they were in agreement, he would like to ask the engineer to work a scenario by Tuesday night, Commissioners agreed. Comm. Bateman would like to be able to service the Highway 50 corridor. Mayor Ison said he would like to look into: being able to service Highway 50 with 100 commercial and make a small modular addition (200,000 to 250,000) to the Industrial plant - for commercial business only. Then take effluent site - maximum one million gallons - meet with the county and other agencies to work out an interlocal agreement for the time being, and then work on the long range. Mr. Kelley stated, putting aside the legal issue and mother nature, it is a matter of effluent disposal. Mayor Ison said he would communicate with Mr. Rossman that the Commission met and received Mr. Kelley's report and generally see a downward trend in connections and need to read and study the report before any further recommendations are made. . The Mayor and Commissioners would like to see a report on the possible expansion of the Industrial Park Plant. City Manager Griffin stated that he had received a phone call from a developer that is interested in acquiring 50,000 gallons sewer capacity in the Industrial Park. The Mayor and Commission told Mr. Kelley that it was a good report. B. Peach/Moxie Update. . Engineer Kelley reported that all of the easements had been signed, there is some related processing such as getting the permitting from Orange County. One of the main problems is that since Burnt Tree has been approved they are ready to start building and he would like to give the contractor the go ahead to proceed, but he cannot assume the liability that would be involved, the Commission would have to do that. He asked the Commission for approval to go ahead and tell the contractor to proceed conditioned upon receiving the permit. He stated he was nervous about the time schedule and wants to proceed. The liability involved would be if the contractor was ready to proceed and the permitting was not complete. Mr. Kelley stated he expected to receive the permit within the next 10 days. Comm. Cox moved to have Mr. Kelley get the contractor going subject to the permit from Orange County and no work to begin until that time, Comm. Bateman seconded. Comm. Hager asked for clarity - he said all they would be doing was lining up men and equipment. Mr. Kelley stated _..~- . . . CITY COMMISSION SPECIAL SESSION SEPTEMBER 10, 1985 PAGE 4 that was the case. Motion approved unanimously. City Manager Griffin said the grand opening for Geneva Park was Saturday, September 14, 1985 and asked the Commissioners to let him know if they plan on Meeting adjourned at 9:25 p.m. at~d2L lR L MAYOR ISON ATTESTj ~k4/~ CITY CLERK CATRON 4