HomeMy WebLinkAbout03-08-88 WS
MINUTES OF THE CITY COMMISSION WORKSHOP HELD ON MARCH 8, 1988
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The meeting was called to order by Mayor Ison at 6:35 p.m..
PRESENT: Mayor Ison, Commissioners Johnson, Dabbs, Bateman
and Hager, City Attorney Rosenthal, City Manager Ryan, City
Planner Wagner and City Clerk Catron.
ABSENT I None
DISCUSSION ON PROPOSED PRIVATIZATION OF WASTEWATER UTILITIES
Proposal by Florida Community S.rvic.. Corporation - J. Tanck
The representatives were not present at this time but were
expected momentarily.
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Presentation of Alt.rnativ.. - M. Walsh
Mark Walsh, of Post, Buckley Schuh, Jernigan, Inc., explained
to the Commission that they helped clients by locating firms
that would contract to build and operate sewer and water
systems. He stated they had been working with the City of
Margate, Florida in trying to get some idea of savings that
would be achieved by privatization. After an RFP was sent
out, 6 proposals were received and they indicated a savings
from 0 to 30~. He said that most of the companies do not
want to owrl the system, but warlt to be a "private arm"
running the system, much like a public works director. He
explained that the magnitude of savings depended on a
decision of timing and who can offer the best deal at the
time. Each factor of the contract, such as utility billing
- meter reading and customer service etc., would be
negotiated separately.
Comm i ss i c.rler
compare the
a 1 t errlat i ve.
Bateman stated that he would find it
two systems and felt we should find
hard to
another
Jim Clark, of M.tcalf & Eddy, stated that they had a $1.8
million dollar contract with Orange County and the City of
Orlando Jointly for the Water Conservation ProJect. He
explained that they receive a flat rate fee. A budget was
set up annually and it was reviewed monthly. If they were
able to come in under budget, they would receive 25~ of the
savings. He stated that his specialty was "contract ops" arid
the normal duration of a contract was for five years.
The Commission thanked Mr. Walsh and Mr. Clark for their
i nformat iorl.
.
Mr. Tanck was still not present, therefore the workshop
adJourned at 7:25 p.m.. Mayor Ison said they would take
care of the other business for the Special Session until Mr.
Tanck arrived.
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City Commis.ion Workshop
March 8, 1988
The Workshop was called back to order at 10:20 p.m.
Ison with all Commissioners still present.
by Mayor
PROPOSAL BY FLORIDA COMMUNITY SERVICES CORP. - J. Tanck
Jim Tanck, President of Florida Community Services, Corp.,
explained that their company was approved in 1985 as a 501-C
Corporation and could issue tax exempt debt utilizing
provisions under Internal Revenue Service regulations that
allowed a non profit company to issue tax exempt debt if they
had a government sponsor. They presently were working with
the City of Kissimmee to service the area south of
Kissimmee on Highway 192 and they would own and manage the
system, but lease it back to the city. The City of Kissimmee
preferred this lease arrangement but contract specifics would
depend on the governmental entity. Another of their proJects
was located in Walton County (in the Panhandle), the county
needed to provide a central sewer and water system and over
the past 2 1/2 years Florida Community Services had acquired
all the different companies and installed the central service
for the south county area. Walton County was the sponsor
and the system was financed through Florida Community
Services and leased to the county.
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Their proposal for the City of Dcoee was, through an
agreement with the City of Ccoee, to finance, develop and
operate a central water and wastewater system with the City
of Dcoee as the sponsor. As a sponsor, the City would
acquire the system, at no cost, upon retirement of the debt
used to finance the system; or the City could acquire the
system at any time during the bonded indebtedness by
assuming the obligations of the proJect and defeasing the
remaining indebtedness. The City would be responsible for
control of the proJect during the term of bonded indebtedness
and agree to accept the assets of the proJect upon defeasance
of the bonds. The Commission would need to decide how much
control they wanted over the system.
Mr. Tanck explained that they made money two ways; one was to
bring in individuals who were called developers by the IRS
(they could not benefit afterwards in any way) and were
successful in marketing bonds and the other was by management
of the system.
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Commissioner Dabbs asked the age of their company, if they
had other companies in Florida and the total amount of
bonding required for acquiring the water system. Mr. Tanck
stated that their company was three years old and they did
Y'lot represent any other companies in Florida other than those
mentioned, but they did represent Marino County, Alabama.
The amount of bonding required for the purchase of the Ocoee
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Page 3
City Commission Workshop
March 8, 1988
water and wastewater system was anticipated to be $7.5 to $8.
million dollars. When questioned about that amount, City
Manager Ryan stated that Mr. Tanck's figure did not include
the City's purchase of the Chicone Tract. Commissioner Dabbs
asked if they would be interested in acquiring only the
wastewater system, and Mr. Tanck said they would but he
recommended the City start combining the two systems.
Commissioner
employees of
d i fferey,t lYe
t his time.
Bateman questioned the status of the current
the wastewater system and what would be done
Mr. Tanck could not answer the question at
Mayor Ison stated that they needed to research what the best
avenue for the City would be and one where the citizens of
Ocoee would win. He asked if they could present something
More refined using our current rates, of course, at no cost
to the City. A workshop would be held when they were ready
to make a presentation.
The meeting adJourned at 11:20
p. m.. ::r L C- ^ ·
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MAYOR
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ATTEST:
CITY CLERK
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