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HomeMy WebLinkAbout06-07-88 WS e RINUTE~ OF THE CITY CORRI5~ION WORK~HOP HELD JUNE 07. 1988 The workshop was called to order at 6:12 p.m. by Mayor Ison. PRE8ENT: Mayor Ison, COMMiasioners Johnson (arrived at 6:16 p...), Dabbs, BateMan (arrived at 6:15p.m.), and Hager, City Attorneys Rosenthal and Woodson, Consulting Engineer Kelley, City Kanager Ryan, City Engineer Finch and City Clerk Catron. A88ENT: None DISCU~~ION REGARDING PROPO~AL BY FLORIDA CORRUNITY ~ERVICES e Jim Tanck, President of Florida COMmunity Services. explained that on Karch 8, 1988, they had preaented their proposal to the City regarding providing for a central water and wastewater syst... Th. Com.ission had requesed they present a revised propoaal based upon updated information. They had only preaented a propoaal for the central wastewater system becauae they had only received inforMation regarding the sewer bond issue. Mr. Tanck said they were a not-for-profit corporation recognized by the Internal Revenue Service. They propoaed to issue tax-exempt bonds for the purpose of acquiring existing sewer facilities in the service area, as well as expansions and improvements to those facilities. This included providing capacity for additional 1200 ERU's for 1988/89 and adding 1.5 million gallon sewage treatment and disposal. They felt this would eliminate the capacity deficiency that existed with the sewer system. He also said they needed an advance registration program as the back bone of the syatem would be paid for by developer's connection fees. They would offer to charge S1650 per ERU with a minimum purchaae of 50 ERU's for a 90 day period only. Mr. Tanck detailed their proposed construction program as follows: Build a new 1.5 mgd expansion site on the Chicone Tract; Provide 1.5 agd expansion of effluent disposal capacity at the Chicone Tract and the West (PVU *5) site; Force Main and pumping station from A.D. Mims to Chicone Tract and West aite; and Comparison of planned improvements - City had planned 1.0 agd and FCS planned 1.5 mdg expansion. e The proposed moniea would be $12,150,000 and would be financed with bonds, reserve funds, capacity sales revenue, bond issue funda and interest on construction. The City would sponaor the proJect - agree to accept the assets once bonds were defeaaed. lease the syatea from FCS and own the system when the bonds were defeased. Florida Community Services would issue the bonds - undertake construction program, lease completed syste. to the City and undertake additional construction if wanted by the City. The City could have the option of managing the system or have FCS manage the syatem. Mr. Tanck felt the advantages to the syst.m were as follows: the City would become "debt free II 1 . Page 2 Ci~y Coaai..ion Work.hop Jun. 07, 1988 again, debt, not be and it res could not aake a pro~it and would issue tax exempt all decisions would be aade by the City, rates would increased, they would provide the necessary capacity would les.en the burden on City Sta~~. Commis.ioner Dabbs asked, based on the figures they used, if the dollars to custoaers would amortize the indebtedness to customera. Mr. Tanck stated that it would. Commissioner Dabbs also aaked about their administration fee which was to not exceed $30,000.00. They did not include a proJect management fee which Mr. Tanck stated would be approximately $1,000 to 81,500 per month. Commi.sioner Dabbs stated that he liked the concept and wanted Mr. Tanck to get any other information that he needed. e Mayor Ison stated that he had a problem with the "numbers" presented and did not feel they had enough conclusive information to say that the rates would not increase. He stated that they needed to talk with Stanley Cohen, our financial advisor for the sewer system. He also discussed their proposal to aove the plant site froa A. D. Mims site. Mr. Tanck stated that they felt it should be aoved. Mr. Tanck stated that he needed additional inforaation. City Manager Ryan said that he had received all the documents from the closing of Prima Vista Utilities and did now know what additional inforaation was needed. Coamissioner Bat.man stated that he liked the approach but he felt Mr. Tanck needed aore information on the dollars in order to present them with a concrete proposal and he could not make a decision on what had been presented tonight. Commissioner Johnson questioned Mr. Tanck's reference in his letter of May 9, 1988 that Mrs. Resnik had said that all the inforaation was not available. Mr. Tanck stated that he had been given all inforaation except the value of the water system. Attorney Rosenthal aade aeveral comments and expressed several areas of concern they should address. They would be paying some feea they had already spent during the acquisition of Prima Vista Utilities and cautioned them to look at re-incurring costs again. Commissioner Dabbs stated that he had spoken about this issue before and felt it should have been handled prior to the consummation of the purchase of PVU. Even though he could foraee aome double coats, he felt it worthwhile to pursue this proposal and would like to have the numbers crunched. e Attorney Rosenthal suggested they needed an independent 2 a Peg. 3 C1~y Co..iaaion Workahop Jun. 07, 1988 analysis. City Manager Ryan stated that they needed back up data as the figures pre.ented did not substantiate the data presented and they had not been able to get the data frOM Florida Community Services. Coa.i..ioner Bate.an suggested that any requests for inforaation be .ade in writing with a copy furnished to the COllai..ion. Mayor Iaon stated that he had a lot of infor.ation regarding the acquisition of PVU and would be more than happy to share it with Mr. Tanck and offered to aeet him in the City Mananger'. Conference Roo. in City Hall. Mr. Tanck stated that he would get with City Manager Ryan and Mayor leon to get the inforaation he needed. DISCUSSION REGARDING "ASTER WATER STUDY Eng. Kelley . Conaulting Engineer Kelley reported that in addition to land use and utilitie., he had planned for 4 fire flows. He had looked at the production need., the aost efficient use in the long run, aake aaxiaua use of existing facilities, propose new plan for Kiaaiaa.e Water Plant Site and Plan for the area south of Highway 50. The proposed costs were as follows: Kiaaiaaee - 81.1 .illion; Ja..la $600,000; Forest Oaks- $700,000; south plant .1.5 .illion and the backbone water aain - $4.1 aillion. This was a total systea cost of approxi.ately 8a aillion. He reco.aended the following phaaing: Pha.e I - Priority Kiasi.aee Ave. Water Plant: Phase II Ja..la Plant Iaprove.ents; Phase III - Forest Oak. I.prove.ent. and Pha.e IV - Iaolation connections. At this tiae, he felt the 8750.00 tap fee for water was adequate. He .aid he had spoken with Stanley Cohen and RCA and hoped to have the .ewer capacity sale within the next 30 to 45 days. City Manager Ryan aaked Mr. Kelley how he had propoaed to .erve Adair - Mosely Eatates by taking Jaaela off line. Mr. Kelley stated that he had planned for that area. The workshop adJourned at 7:30 p.Il.. to n ~ --~~-~~---- MAYOR ATTEST: . CITY CLERK 3 ...