VII (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
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° • 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
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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
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