1994/03/14TO:
FROM: "Utility Wor ing Group
March 14, 1994
PRESS RELEASE
Solving Okeechobee's water and sewer problems is urgent for
the welfare of the business community and homeowners.
Without cheaper water and expansion of both the water and
sewer systems economic growth of the community is stifled.
Okeechobee has one of the highest rates of unemployment in
the state as well as one of the lowest incomes per household.
Better sewer and water services to outlying commercial
districts where industry can locate will make it possible to
not only raise the standard of living but improve all other
services to the residents as well.
With economic benefits for Okeechobee in mind, the City,
County and Okeechobee Beach Water Association have joined
forces to find a solution to the water and sewer problems.
Representatives from each one of these entities are meeting
regularly, hoping to come to agreement on many of the issues
that have, up -to -now, caused disagreements and resistance
to change. But through the diligent efforts of Mayor Jim
Kirk, Chairman of the County Commission,Charles Harvey,
Director of Okeechobee Beach Water Association, Mr. Jack
Coker and Economic Council members, Mr. John Abney and
Mr.Frank Altobello, progress is being made. In the past two
meetings of the Utility Working Group (UWG), as they have
called this loosely formed task force, experts have been
called in to counsel the representatives in regards to ways
and means of resolving the water and sewer conflicts of the
past. They have offered suggestions on how to move forward
for the benefit of the entire community.
The UWG has listened to the experience of utility directors
who have gone through the struggle of forming a successful
utility authority in their communities even though they had
once faced opposition. Mr. James Chansler, Director of Public
Utilities for the City of Boca Raton, recommended the utility
authority be as non political as possible. He counseled that
levying an ad valorem tax was not the way to finance a
utility. Mr. Paul Van Buskirk, executive director of the Lee
County Regional Water Supply Authority, explained his
experience bringing together nine systems under one utility.
He distributed a map of existing and proposed facilities for
the Lee County Water Supply Authority and the interlocal
agreement used to create the authority. He stated its first
activity was to draft a master plan.
r
In a subsequent meeting, the members of UWG listened to the
counsel of Fred Bryant, a Tallahassee attorney who is well
versed in this subject. He outlined the different ways in
which partnerships or consolidation of the three utilites
could be legally approached. His analysis of our current
condition, as well as the analysis of a professional
engineer, Harold Bridges, Ph.D., of Jacksonville, who
determined some of the strengths and pitfalls facing
Okeechobee under the current system, has been formulated in a
letter to the UWG.
The general consensus seems to be that a utility authority
will eventually lessen the burdens of the users over time.
The group is currently awaiting an appraisal of the water and
sewer system that will enable them to bring more facts to the
table. The equity position seems to be an important issue to
the group Once the appraisal is complete, the finer
details of the proposal for the respective boards will be
easier to complete.
On March 16th, the UWG approved to have a rate analysis
performed by Dr. Bridges. The purpose of the proposed water
and sewer rates analysis is to provide the Okeechobee Utility
Working Group with an understanding of:
(1) water and sewer rates uniform for all customers which
would be required to maintain the existing revenue of
the system; and
(2) a five -year projection of system revenues,
expenses and debt service requirements. The rates
analysis will be made assuming two levels of
contribution ($2.0 million and $3.0 million) by the
County and the five -year projection will be made both
with and without a proposed $8.0 million wastewater
improvements project.
(3) Determine what city water rates will be with and
without Okeechobee Beach Water Association customers.
The study will then be submitted by the UWG to the City
Council at their regular meeting, April 19th, with Dr.
Bridges present to explain his findings.
Forming a utiliity authority has emerged as the optimum
method for creating the most advantageous system county -wide.
But the time consuming process could take up to a year.
Meanwhile, the task force facing a deadline for its
discussions at the end of the month have asked their
respective governmental entities and /or boards for extensions
to continue the talks, since it is just beginning to analyze
some workable solutions.