JOINT CITY/ ADVISORY COMMITTEE
MEETING MINUTES
October 17, 2007
ATTENDEES
Commissioner Michael McLean, Seminole County, Chairman
Commissioner Gary Brender, City of Lake Mary
Marty Chan, PBAS Representative
Commissioner David Gilmore, City of Winter Springs
Mayor Bob Goff, City of Casselberry
Commissioner Carlton Henley, Seminole County
Kim Hengehold, Oviedo C of C
Commissioner Randy Jones, City of Sanford
Mayor Linda Kuhn, City of Sanford
Hank Lander, Casselberry C of C
Mayor John Maingot, City of Longwood
Tom Marin, Seminole C of C
Jonathon Moore, Seminole C of C
Councilman Dominic Persampiere, City of Oviedo
ABSENT
Commissioner Susan Doerner, City of Casselberry, Vice-Chairman
Commissioner Jon Batman, City of Altamonte Springs
Mayor John Bush, City of Winter Springs
David Gierach, Sanford C of C
Steve Glazier, Winter Springs Business
Mayor Thom Greene, City of Lake Mary
Mayor Russ Hauck, City of Altamonte Springs
Commissioner Brian Sackett, City of Longwood
Mayor Tom Walters, City of Oviedo
The meeting was called to order by Chairman McLean at 3:10 pm.
1. Approval of Minutes
Motion to approve August 15, 2007 minutes by Commissioner Carlton Henley. Second by Mayor John Maingot. Motion passed unanimously.
(Note: Tom Marin was present at the August 15, 2007 meeting. He was inadvertently listed as absent.)
Chairman McLean gave the committee an update on the Mosquito Control Program.
3. Surface Water Treatment Plant Presentation - Matt Alvarez, CH2MHill
Matt Alvarez showed a power point presentation providing an overview of the Seminole County Regional Water Treatment Facility at Yankee Lake. The following four items involving the development of the facility were discussed:
Facility Review:
This property is a very unique property strategically located between Seminole, Lake and Volusia County and additionally has more than 50 acres of land. Seminole County is intending to leverage this location for a regional facility project to become the region’s first supplier of treated drinking water from the St. Johns River. Seminole County plans to leverage this location with project cooperators and partners. Contracts and financial commitments are to be in place by spring. The importance of this property is the unique opportunity for this facility to reach a capacity of 75 million gallons of water a day (MGD). Initial estimates are that a 75 million MGD plant could produce 1,000 gallons of potable water for about $3.50. The cost of a 25 million MGD plant would be closer to $5.00 for 1,000 gallons.
Commissioner McLean said it would be fair to say there are not many alternative sites that have this size and this strategic location. Mr. Alvarez agreed.
Mayor Maingot asked if the St. Johns River was the main source of water for intake and asked about the initial consumption. Mr. Alvarez said yes it the main source, but there are proposed dual uses, not just potable water treatment. The St. Johns River Water Management District is currently finalizing their minimum withdrawal levels for initial consumption.
Phase 1:
Phase 1 is a reclaim, augmentation plant that will be rated at 10 MGD to use for irrigation and offset groundwater use for irrigation. It also includes the base infrastructure for potable capacity of up to 25 MGD.
Phase 2:
Phase 2 has an expansion for up to 75 MGD and is anticipated to be primarily potable water. It will include filtration, membranes and sludge handling.
Ms. Chan asked from a population standpoint, what the numbers are that will be able to be serviced. Mr. Alvarez said he couldn’t quote specific population numbers but the demands that are coming in from potential partners are through 2035.
Project Status:
The County needs augmentation water soon for its retrofit program in the northwest service area. Those pipes are going in the ground now through the County’s CIP program. The design for Phase 1 is complete; there was a pre-bid on September 5th and the bids are due in October 24th. This is the only project in the area moving forward with significant SB 444 grant funds. There is $7.5M signed and secured in grant funds for this facility and we anticipate this number to grow as regional partners come on board.
Phase 1 Bid Estimate:
Treatment Plant $29,437,273
Intake/RWPS $6,419,335
Raw Water Pipeline $22,171,599
Total $58,028,207
There is approximately $28M in regional river intake infrastructure for the potable treatment facility.
Mayor Goff asked of the $58M, how much is for reclaimed water. Mr. Alvarez said the $58M first phase would include some infrastructure for the potable water system but would primarily service reclaimed water needs.
Mayor Goff asked what the service area for reclaimed water is. Mr. Alvarez said that would be dependent upon the next phase. Currently the first phase of reclaim would be for the northwest service area of Seminole County. Mayor Goff felt that Phase 1 is aimed at solving the County’s problem, not a regional problem.
Mr. Alvarez said the choices that were made for Phase 1 and Phase 2 have made this more of a regional concept. Phase 1 is primarily for the County’s need for reclaimed water for the northwest service area and the County will also need some increment for potable water in the future as well. However, what has been decided is to leverage this site to make it available for multiple uses and partners to grow the economy of facility and produce water treatment for everybody.
Ms. Chan asked if the existing facility is going to be leveled and a new treatment facility installed. Mr. Alvarez said no, the existing facility would be expanded to make it larger.
Mayor Maingot asked if the membranes can be cleaned with the backwash system or if they have to be replaced. Mr. Alvarez said they will be cleaned on a regular basis. The data being used for this design showed the membranes would last up to five years with regular cleanings and the micro-filters would last longer than that.
Chairman McLean said that Phase 1 would deal with the immediate needs of the County and Phase 2 would develop a more regional concept to help our partners with the capacity they are going to need in the future.
Mr. Alvarez went over a chart which showed the total costs per Kgal and explained how the unit cost product went down significantly as the facility size increases. He again emphasized the significance of having this site centrally located with so much area for expansion.
Chairman McLean agreed and stated that according to the experts it is not a matter of whether we are going to have water but how much we are going to have to pay for it. This facility gives all the partners the opportunity to save money in the delivery of both reclaimed and potable water.
Commissioner Gilmore asked if there was any potential use for ozone. Mr. Alvarez said probably not. Ozone further south is a very good option for Commissioner Gilmore asked if there was any potential use for ozone. Mr. Alvarez said probably not. Ozone is a very good option for disinfection, taste, and odor control south of State Road 520 because south of 520 the river water is fresh and a better application for ozone.
Contract Development:
The County is currently hosting bi-weekly meetings for this collaborative process to develop deal structure. The process will be transparent and open to all potential capacity partners. The goal is have a primary deal structure by the first part of 2008 and signed agreements by Spring 2008. This will allow facility start-up as early as 2011-2012.
Letters of Intent:
The Letters of Intent are the facilitator of this collaborative process. These are non-binding and a starting place for demands and scenario development. If a contract basis and cost of water to capacity partners is going to be developed, you can not model the financial elements of that and determine the cost of water without knowing how big the facility is going to be. These letters will provide demands, points of delivery and the need for a rate development process. The County targeted getting these letters in by October 1st to start framing the financial model and rate development process and knowing what the ultimate size would be.
Mr. Alvarez went over the list of signatories indicative of project viability. He said that right now there are a dozen or so signatories for potable water with a total of approximately 54.5 MGD.
Schedule for next steps:
The near-term meeting schedule is for October 18th and November 1st. These meetings will finalize governance issues, capacity rights, payment, and water rate development methodology.
Mr. Alvarez said by November/December all the letters of intent should be in and then we will begin to look at treatment technology and plant sizing.
In December and the first part of 2008, the financial analysis and the development of the rate calculation methodology will be done. The final rate will then be part of the terms and conditions of the contract which will be converted to an executable contract partnership by Spring 2008.
Mayor Goff asked if partners will be paying for water in 2008 that will be delivered after 2012. Mr. Alvarez said that would depend upon the financial terms of the contract but there will be some payments made before 2011 because the facility would need to be built. The amount that will be paid and when it will be paid will be determined over these next series of meetings.
Mayor Goff asked if the partners were expected to pay 100% of the financing for the $58M up front. Mr. Alvarez said the majority of Phase 1 is currently financed through bond money from the County. What is being talked about right now in terms of these capacity payments is not the $58M but the actual cost for Phase 2 which will be between $200-$400M. This deal structure is currently being worked on; not the $58M.
Commissioner McLean asked what type of “seat at the table” a capacity partner has as opposed to others. Mr. Alvarez said that what is being proposed is that capacity partners will play a part in the facility and the facility decisions.
Commissioner McLean asked about the challenges from some of the municipalities that are not ready to commit formally at this point. Mr. Alvarez stated there are a few who want to see what the decision process and the rate calculation methodology will be. It is important to note this is not something that is going to be mandated; it is being developed collaboratively with the group.
Mayor Goff said the major question out there is where the profits will go.
Commissioner Brender asked if it was correct to assume that if you are technically an equity partner you would share in the profit or the loss accordingly. Mr. Alvarez said that capturing the cost of the facility, the cost of operations, and the County investment of the property and infrastructure, there will be a weighted rate of return that will be negotiated over the next few weeks.
Cindy Coto, County Manager, said that Seminole County operates its water and sewer program as a separate Enterprise Fund which is completely self-sufficient and none of the dollars go into the General Fund. Any profit that is made is reinvested back into the system.
Mr. Lander asked if there is an agreement for a set amount of time once the capacity partners buy in. Mr. Alvarez said that right now the financing term is a 25 year bond so the contract period would be for 30 years.
Mr. Lander asked if there is any fear that a private company or enterprise would come in after 10 years and offer a rate cut to the Cities. He said this has happened with other services in other counties. Mr. Alvarez said it is not likely that another large facility could be built on the river, close by, that can obtain the needed withdrawal permits. However, the concept is valid enough that there are withdrawal penalties in the deal structure so partners can not just pull out.
Commissioner Gilmore inquired about augmentation water partners. Mr. Alvarez said the first phase of Phase 1 is for 10 MGD and that will primarily serve most of the County’s needs for augmentation. There is a potential in Phase 1 for 5MGD expansion for other parties. There has been discussion of converting it to potable since all the demands that have come in to-date have been for potable water.
Commissioner Brender asked if St. Johns has looked into the environmental impacts concerning the withdrawal of 100M gallons a day. Mr. Alvarez said that on the St. Johns website there is documentation of the process that is used statewide as to how the withdrawal levels are set.
Mayor Goff asked what the rights of the partners will be after the 30 years. Mr. Alvarez said that is another question that will be discussed at the meetings.
The meetings will be held every 1st and 4th Thursday from 1:00pm - 4:00pm at the Seminole Community College Economic Development Building, located at 1055 AAA Drive, Heathrow, Florida.
5. Update on the Matrix Fire/EMS Efficiency and Effectiveness Study Report & the efforts to date of the subcommittee – Tad Stone, Public Safety Director
Chairman McLean gave a summary of the four items discussed at the last Joint City/County Advisory Meeting regarding the Matrix Fire/EMS Study:
Mr. Tad Stone, Public Safety Director, said the fire chiefs have met twice as a group in the last two months and have another meeting scheduled for Tuesday, October 23rd. They will be able to deliver their report to the Joint City/County Advisory Committee for the December meeting.
Chairman McLean requested the report be finalized by the end of November since there will not be a December meeting. Mr. Stone said that he felt that it could be pulled together by November.
Chairman McLean expressed his appreciation to Oviedo Mayor Tom Walters for serving on this committee since his term will be up in a few weeks.
Commissioner Henley asked the elected officials to let the legislature in Tallahassee know the impact that will be created by the lost revenue of tax cuts. He said he did not know if the County could continue to provide a number of the free services to the cities.
Mayor Maingot said the cities will have to take a very serious look at the services that are being provided.
The next meeting will be held on Wednesday, November 28th at 3:00 pm at the County Services Building, 1101 East First Street, Room 1028 (BCC Chambers), Sanford, FL.
Being no further business, the meeting was adjourned at 4:25 pm.