1995-07-11 Special MeetingCITY OF OKEECHOBEE
SPECIAL MEETING OF THE CITY COUNCIL
SUMMARY OF COUNCIL ACTION
A. Call Special Meeting to order on July 11, 1995 at 6:00 p.m.
B. Mayor and Council Attendance:
Mayor James E. Kirk
Councilmember Noel A. Chandler
Councilmember Michael G. O'Connor
Councilmember Robert Oliver
Councilmember Dowling R. Watford, Jr.
Staff Attendance:
City Attorney John R. Cook
City Administrator John J. Drago
City Clerk Bonnie S. Thomas
Deputy Clerk S. Lane Gamiotea
C. OPEN PUBLIC HEARING
Mayor Kirk called the Special Meeting to order on July 11, 1995 at 6:00 p.m.
Clerk Thomas called the roll:
Present
Present
Present
Present
Present
Present (entered chambers at 6:04 p.m.)
Present
Present
Present
Mayor Kirk requested a moment of silence for City Employee Police Detective Gene
O'Neil who underwent major surgery today.
Mayor Kirk opened the PUBLIC HEARING at 6:03 p.m.
1. a. Motion to adopt Resolution 95-7, determining that transfer Councilmember O'Connor moved to adopt Resolution No. 95-7, determining that
of the City water and wastewater utilities to the Okeechobee transferring the City's water and wastewater utilities to the Okeechobee Utilities
Utility Authority is in the public interest, pursuant to the Authority (OUA) is in the public interest, pursuant to the provisions of Section 180.301
provisions of Section 180.301, Florida Statutes - City Florida Statutes; seconded by Councilmember Oliver.
Attorney (Exhibit 1).
c. Public Comment. Mayor Kirk asked for public comments first to give the City Attorney time to get to the
meeting. There were no comments from the public.
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PAGE 1 OF 8
C. PUBLIC HEARING
b. Discussion
JULY 11, 1995 - SPECIAL MEETING - PAGE 2 OF 8
Councilmember Watford began the discussion stating that this is probably the most
important decision the City has ever made and that he finds it sad that there was no
one from the public here to comment on such an important issue. He then stated his
personal comments on this issue was: (1) The haste/hurry that we have gotten into all
of sudden to get this thing finalized. (2) The rate issue, explaining that he took his bill
and used the formula and the rates will go up. (3) Economies of Scale, he understands
as things get bigger, they cost more, but he did not think that there is going to be a
large amount of customers that hook up just because there is a utility authority now. (4)
Politics taken out of the water and sewer issues, not so, the politics will continue and
used the example of the latest issue with the Planning and Zoning Board. (5) The
amount of South Florida Water Management District's (SFWMD) involvement. (6) The
City will lose a very valuable source of income. (7) The lack of compromise on the OUA
Board and their staff has said that the County and Okeechobee Beach Water
Association (OBWA) feels the same way. (8) Uncomfortable with other disputes we
have recently come into with the County. (9) The effect on the City's budget. (10)
Franchise fee issue. He continued that he had been wrestling with all this and he did
not feel comfortable with all this right now and he did not know if it is within the best
interest of the City.
Mayor Kirk thanked Councilmember Watford for his comments and responded to some
of them. (1) the rates are going to be higher, and he did not think the City could keep
them down either. (2) Politics in the system, that is a way of life. (3) Debt service fee
higher, no different than the rates. (4) SFWMD, do not have a comment for that one.
(5) Lose a valuable asset, that is correct. (6) OUA Board will take a 4/5 vote on all
issues so that should give us some peace of mind. (7) It will affect the City's budget.
He continued further that he did not know if we proceed with keeping the system that
we could do much better with it. The City and County are going to have to get along
better and get over some issues. He wished he could tell everyone that this is in the
best interest for everyone one hundred percent. We will never have something that is
perfect, everyone will just have to vote what they feel.
(.0ri
JULY 11, 1995 - SPECIAL MEETING - PAGE 3 OF 8
C. PUBLIC HEARING
b. Discussion continued. Councilmember Oliver commented that he felt the City and the community had worked
on this issue long enough and that although what we have is not perfect, it is good
enough.
Mayor Kirk asked Engineer Gerald Hartman of Hartman and Associates concerning his
letter dated June 30, 1995 on the accounts, 517 and 536 when we "true up" what is left
over the City gets to keep? Engineer Hartman responded correct.
Discussion continued between the Council and Attorney Minton and Engineer Hartman
concerning capital projects, vehicles transferred by OBWA, use of City right of ways and
easements, annexation agreements, buy down rates, grant monies available from
SFWMD and the proposed wastewater expansion project for Treasure Island.
Attomey Cook advised that he would like to briefly review the document that has been
prepared. The documents you have, in the very front, page 1-1 has some background
information. Page 1-4, the relevant statutes 180.301, prior to the time before you vote
on the resolution each of the nine areas under that statute should have been addressed
that are on page 1-4. The package you have in front of you is laid out very nicely and
each one of those subparagraphs of the statute are addressed.
He briefly went over each one commencing on page 2-1, the statute requires the most
recent available income and expense statement for the utility be addressed and
following that page you have the Hartman documents that do in fact set forth the most
recent available income and expense statements.
Page 3-1, the second requirement of the statute is to set forth the most recent available
balance sheet for the utility, listing assets and liabilities and clearly showing the amount
of contribution -in -aid -of -construction and the accumulated depreciation thereon. Again
the various Hartman documents substantiate and set forth those figures that do appear
to comply with the statute.
C. PUBLIC HEARING
b. Discussion continued.
JULY 11, 1995 - SPECIAL MEETING - PAGE 4 OF 8
Page 4-1, the third requirement of the statue is a statement of the existing rate base of
the utility for regulatory purposes. This section states that since the City is exempt from
rate regulations it does not have an established rate base approved by an appropriate
regulatory entity.
Page 5-1, the fourth requirement is to address the physical condition of the utility
facilities being purchased or sold. And there based on Reese, Macon and Associates's
(RMA) documents, and there are exhibits attached to this document that do code and
cooperate these facts and figures, this refers to the RMA exhibit that sets forth the size
of the mains, the age of the plants, it has an opinion based on current information as
to the condition of the various facilities in the system and the age of it.
Page 6-1, the fifth requirement of the statute is the reasonableness of the purchase or
sales price and terms. We could discuss this all night, but in that section it sets forth the
various consideration that all parities considered. Of course here we are looking to what
is in the best interest of the City but they list all the various considerations and the pro's
and con's as to why the figures we relied upon are reasonable.
Page 7-1, the sixth requirement of the statute is to consider the impacts of the purchase
or sale on utility customers, both positive and negative. I believe that has been
discussed fully by this Council. The various pro's and con's as to that is set forth in
Chapter 7.
Page 8-1, subparagraph of the statute, any additional investment required and the ability
and willingness of the purchaser to make that investment, whether the purchaser is the
municipality or the entity purchasing the utility from the municipality, that would be the
authority of course. This section would address the current status of the system, any
required improvements, the proposals for future capital improvements by the authority,
potential sources of income, etc. and that section would need to demonstrate that the
authority is in the position to make the additional investments and the capital
improvements.
JULY 11, 1995 - SPECIAL MEETING - PAGE 5 OF 8
C. PUBLIC HEARING
b. Discussion continued. Page 9-1, the eighth requirement of the statute to consider the alternatives to the
purchase of sale and the potential impact on utility customers if the purchase or sale
is not made. This also lists the consideration pro and con in regards to that
consideration. I think this Council has fully discussed the alternatives available to the
City and they are honestly not good. We have discussed this before, if we do not enter
into the utility we are going to revert back to the lawsuit with OBWA, we are going to
fight over customer base territory, we are going to as a City face the possibility of
running the utility and making capital improvements without benefit of the OBWA
customers.
Page 10-1, the ninth requirement of the statute, the ability of the purchaser to provide
and maintain high quality and cost effective utility service, whether the purchaser is the
municipality or the entity purchasing the utility from the municipality. Again this will refer
to the authority, this is a fairly subjective area because the authority has not operated
and we are not exactly sure what is going to happen, however, as this section points
out the same staff and management and facilities will be used and the capital
improvements have been thought out and programmed into the master transfer
agreement and based upon that they believe the authority will have the ability to provide
the same quality of service to the customers.
The statute requires that those factors be considered, I believe that not necessarily al
this meeting but also prior ones, all of these issues have been discussed and the
procedure at this point would be to adopt the Resolution if the Council believes that
transfer of the utilities is in the public interest, once that is accomplished we would then
proceed onto considering the master transfer agreement.
(P�o
C. PUBLIC HEARING
1. d. Vote on Motion.
CLOSE PUBLIC HEARING
RECESS
D. NEW BUSINESS
JULY 11, 1995 - SPECIAL MEETING - PAGE 6 OF 8
Mayor Kirk asked if there was any additional discussion. There was none, he then
called for a vote to adopt Resolution No. 95-7 :
KIRK
CHANDLER
O'CONNOR
OLIVER
WATFORD
MOTION CARRIED.
Resolution No. 95-7 title reads as follows:
"A RESOLUTION OF THE CITY OF OKEECHOBEE DETERMINING THAT THE
PROPOSED TRANSFER OF THE CITY WATER AND WASTEWATER UTILITIES TO
THE OKEECHOBEE UTILITY AUTHORITY IS IN THE PUBLIC INTEREST, PURSUANT
TO THE PROVISIONS OF SECTION 180.301, FLORIDA STATUTES PROVIDING FOR
AN EFFECTIVE DATE."
Mayor Kirk closed the PUBLIC HEARING at 6:56 p.m.
Mayor Kirk recessed the meeting at 6:58 to allow the Code Enforcement Board to have
their regular scheduled meeting at 7:00 p.m. and reconvened the meeting at 7:40 p.m.
1. Motion to approve Master Transfer Agreement among the Councilmember O'Connor moved to approve the MasterTransfer Agreement among the
City of Okeechobee, Okeechobee County, Okeechobee City of Okeechobee, Okeechobee County, Okeechobee Beach Waster Association, Inc.,
Beach Waster Association, Inc., and the Okeechobee Utility and the Okeechobee Utility Authority; seconded by Councilmember Oliver.
Authority - City Attorney. III
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D. NEW BUSINESS
Approve Master Transfer Agreement continued.
2. Motion to approve Interlocal Agreement between
the City of Okeechobee and Okeechobee Utility
Authority concerning the provision of services
by the City and the use of City facilities by
the Okeechobee Utility Authority effective
October 1, 1995 - City Attorney.
JULY 11, 1995 - SPECIAL MEETING - PAGE 7 OF 8
Discussion was held between the Council and OUA Staff concerning dissolution, Council
revised the Master Transfer Agreement for the dissolution to be ten years, according
to Attorney Cook this was a cross reference that was not picked up by the OUA Staff.
Other issues discussed were the survey's for the Water Treatment Plants, obtaining a
perpetual easement for the old wastewater treatment plant, and that the Council wanted
documents in plenty of time to review them at the end of September.
Vote on motion to approve the Master Transfer Agreement is as follows:
KIRK
X
CHANDLER
X
O'CONNOR
X
OLIVER
X
WATFORD
X
MOTION CARRIED.
Council discussed a memorandum from Administrator Drago concerning the Interlocal
Agreement between the City and OUA for use of facilities and gasoline purchase.
Councilmember Oliver moved to approve the Interlocal Agreement between the City of
Okeechobee and the Okeechobee Utility Authority concerning the provision of services
by the City and the use of City facilities by the Okeechobee Utility Authority effective
October 1, 1995 with the changes as stipulated in the memorandum from Administrator
Drago to Council dated July 10, 1995; seconded by Councilmember Watford.
KIRK
X
CHANDLER
X
O'CONNOR
X
OLIVER
X
WATFORD
X
MOTION CARRIED.
ADJOURNMENT - Mayor Kirk
PLEASE TAKE NOTICE AND BE ADVISED that if a person decides
to appeal any decision made by the City Council with respect to any
matter considered at this meeting, he/she may need to insure that
a verbatim record of the proceeding is made, which record includes
the testimony and evidence upon which the appeal is be based. A
tape recording of this meeting is on file in the City Clerk's Office.
JarTYes E. Kirk
Mayor
ATTEST:
Bohnie'S; Thomas, CMC
City Clerk
JULY 11, 1995 - SPECIAL MEETING - PAGE 8 OF 8
There being no further items on the agenda, Mayor Kirk adjourned the meeting at 8:15
p.m.
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RESOLUTION 95-7
A RESOLUTION OF THE CITY OF O ECHOBEE
DETERMINING THAT THE PROPOSED TRANS ER CITY WATER AND WASTEWATER UTILIOF THE
TIE TO THE
OKEECHOBEE UTILITY AUTHORITY IS /N T E PUBLIC
INTEREST, PURSUANT TO THE IS
O SECTION
EFFECTIVE DAATETE1, FLORIDASTATUTES PROVIDING FOR AN
WI TNESSETH.
WHEREAS, on November 10, 1994, the Board of Co my Commissioners Okeechobee County, Florida (the "Coon of.
"City"), entered into an Interloca! Agreement and
the Okeechobee Of Okeechobee, Florida (the
("Interloca/ Agreement"), which is recorded at Official Records Book 360ti� a Ae thvrity
Public Records of Okeechobee County, Florida; and 9 1784,
WHEREAS, the creation of the Okeechobee Utility Author!
to provide for a unified system of water and wastewater service rrOkeec was intendedobee
and the areas currently served by OBWA, and provfde for the po ent/al of interconnects
With other publicly held systems, so as to ensure the continued rovision of a sake
healthy environment for the consumers of the utility system, an to protect the !i and
water supply capability of the Okeechobee County environment i such a manner s swill
give priority to encouraging conservation and reduction of adverse environmental effects
of excessive or improper withdrawals of
Proliferation of septic tanks, package water from concentra ed areas, as we// as
Plants, and improper waste ; ter disposaland
WHEREAS, OUA constitutes a separate legal entity, whic h has those powers
duties, and responsibilities set forth in the Interloca! Agreement; and
WHEREAS, on March 17, 1995, OUA and the City entere4y into an Operational
Agreement ("City Operational Agreement"); and
WHEREAS, on March 18, 1995, OUA and OBWA enters
rainto an Operational
Agreement ("OBWA Operational Agreement'), which was there re consented to b the
County on April 27, 1995; and y
WHEREAS, pursuant to the City Operational Agreement and OBWA Operational
Agreement, the City and OBWA have been authorized by OUA to continue the operation
of the City Utilities and OBWA Utfllty, within their respective service areas, until Closln
Pursuant to the terms and conditions of the City Operational Ag eement and OBWA
Operational Agreement, respectively; and
WHEREAS, upon completion of the transfer to OUA at Clos,
which comprise the City Utilities, County Utility, and OBWA Utility,
Obligations and liabilities of the City, County, and OBWA which reli
County Utility, and OBWA Utility, all as herelnafter provided; and
WHEREAS, the parties to the InterlocalAgreement have prev
Master Transfer Agreement shall provide that no transfer of assets i
or OBWA, shall occur prior to Closing, and that the transfer of assets
and OBWA to OUA shall occur simultaneously at Closing, which sh:
September 30, 1995, and
of all of the assets
1A shall assume all
to the City Utilities,
us►y agreed that the
m the County, City,
vm the County, City
occur on or before
WHEREAS, the Master Transfer Agreement shall be contingent upon the County
detemlining, after properly advertised public hearing, and after consideration of those
factors set forth in Section 125.3401, Florida Statutes (1993), that transfer of the OBWA
Utility from OBWA, through the County, to OUA would be in tt ie public interest; and
WHEREAS, the Master Transfer Agreement shall be contingent upon the City
determining, after properly advertised public hearing, and after consideration of those
factors set forth in Section 180.301, Florida Statutes (1993), that the transfer of the County
Utility to OUA and the City Utilities from the City to OUA would be in the public interes
and
WHEREAS, the Master Transfer agreement shall be contingent upon OUA
determining, after properly advertised public hearing, and after consideration of those
factors set forth in Section 189.423, Florida Statutes (1993), that transfer of the City
Utilities, County Utility, and OBWA Utility to OUA would be In the public interest; and
WHEREAS, Section 180.301, Florida Statutes, requires the City to hold a public
hearing prior to selling or transferring any City owned utility, an
WHEREAS, the City has held a properly advertised public Baring on July 11, 1995,
heard public comment, and considered a number of factorsinc the following: , uding, but not limited to
a• The most recent available income and expense statement for
the Utility; and
b. The most recent available balance sheet for the Utl ity, listing
assets and liabilities and clearly showing the arnount of
contributions -in -aid -of -construction and the accumulated
depreciation thereon; and
C. A statement of the existing rate base of the Utility for
regulatory purposes, and
d. The physical condition of the Utility facilities being p rchased
or sold, and
e. The reasonableness of the purchase or sales price and terms;
and
f The impacts of the purchase or sale on Utility customers, both
Positive and negative, and
9. Any additional investment required and the abi ty and
willingness of the purchaser to make that investment whether
the purchaser is the City or the entity purchasing the Utility
from the City; and
h. The alternatives to the purchase or sale and the p tential
impact on Utility customers if the purchase or sale is not
made; and
L The abil/ty of the purchaser to provide and maintail
quality and cost-effective Utilityservice, whetherthe pur
is the City or the entity purchasing the Utility from the
2
high -
City.
NOW, THEREFORE, be It resolved by the City Council off the City of Okeechobee
Florida, as follows:
1. The proposed transfer by the City of the City Water and Wastewater Utilities
to OUA is in the public interest, pursuant to the provisions of Section
180.301, Florida Statutes.
2. The City Attorney and the City Administrator are hi
reby directed to present
the Master TransferAgreement to the City Council r further action as soon
as possible.
3. This Resolution shall take effect Immediately upon
law. �ts adoption, pursuant to
DONE AND ADOPTED in special session this 11th day Of JUly, 1995.
BONNIE S. THOMAS, C.M.C.
City Clerk
3
CITY of OKEECHOBEE
MEMORANDUM
TO: Mayor and Council
DATE: J1 ly 10, 1995
FROM: John Drago
City Administrator SUBJECT: In OdOcal Agreement
Because of confusion surrounding the date of the Public He
P.m. The Public Hearing is scheduled for 6.00 meet at 7.00 p.m. P.M. The
Enclosed are a flew sets of documents for the public hearing
received. Below is a set of recommendadons for the propos
between the City and OUA. l don't think that the City shoe
purchasing, inventory and personnel activities. The accounting i
uses the same budgeting format and chart of accounts . If not t
their own accounting functions. On the Issue of the maintena
interlocal calls for the Finance City to fumish gasoline for the $9,150.0
Department tell me the cost of gasoline used by public
Years and this year. For 1992193 $10,180.00, 1993/94 $9,6
estimated e high 2.00. When you factor in the vehicle from Beac
going to be higher.
If the council decides to leave the interloca/ agreement as is;
OUA to pay for their gasoline separately.
MR—MS
The term of this agreement shall commence on October
September 30, 1996 Thereafter, subject to the "Notice" p
P&R9raph 5 below, this agreement shall be automatically rt
one year terms coinciding with the City's budget year, com
1 and ending on September 30 of the following year.
1
the agenda shows 7:00
Board is scheduled to
n July 11th, 1995 that I
d interloca/ agreement
d be Involved in their
fine as long as the OUA
en they should provide
ce bam, the proposed
annual flee. I had the
rtilitles for the past two
¢.00, and for 1994195
Water, the figures are
YOU should require
1, 1995 and end on
rovislons provided In
mewed for additional
mencing on October
2. USES AND SERVICES
a• Ofirce S ce - use of offr"ce space currently /o ated at 56 S. E. 3rd
Okeechobee. The olTice space shall Avenue,
phone lines, fax, and utilities. include the use of the copy machine,
Annual fee - $2 , 000
b. Financial Services - financial services shall include
other associated data processing functions. noel dell' accounting and
C. Maintenance Bum - use and access to the orient maintenance
utilized by Public Utilities located at barn
Such use 500 N.W. 11th Avenue, Okeechobee
shall also include half of the re
equipment and materials. Annual fee - $45, 001 al property for storage of
d Police Dis etch - use of police dispatch servi es after normal working
hours, weekends and holidays and of the City's nidio frequency to conduct
OUA operations. OUA will be responsible for ally FCC for violation of rules associated with the use by penalties levied by the
will also defend the City against the FCC Jf any violations of FCC rules
warrant either suspension or revocation of the Ci 's license. Annual five -
$15,000.
3. PAYMENT
OUA shall pay the City the total amount of the annual feeg listed above, with future
amendments, for the uses and services provided to OL A by the City under this
agreement, on a monthly basis beginning October 1, 1 S
4. MODIFICATION
OUA and the City shall have the right to mo
Providing either padify the terms of this agreement upon
party with sly (80) days prior written notice. In the event of an
modJfrcatfon, OUA's payment to the City shall thereafter be ncreased or decreased
by the prorated amount of the applicable annual fees for uses and services.
s• BILLINQ SERVICE CHARQES
OUA shall handle all billing and collection of funds for Ci OUA shall issue a consolidated bill for water, sewer ant
customer. In compensation for the above service, the City
eighty cents ($.80) per bill. OUA also agrees to disc
wastewater service to any City customer who fails to pay
the consolidated bill. Further, either parry may terminate
solid waste services.
garbage to each City
hall compensate OUA
7ntinue water and/or
le garbage portion of
118 provision separate
and apart from the remaining provisions of this agreem nt, upon ninety (90) days
written notice to the other party.
9. GOVERNING LAW AND VENUE
JJD:II
This agreement shall be governed by and construed in
of the State of Florida. In the event of any legal or equi
this agreement, the venue shall begin in Okeechobee
3
dance with the laws
action arising under
INTERLOCA�; �p�{�EMENT
THIS INTERLOCAL AGREEMENT made and entered into this
day of 1995, b
OKE CE HOBEE, FLORIDA Y and between the
(the',City,,),a Political subdivision of the CITY of
Florida and the OKEECHOBEE
Utility authority created b g State of
y interlocal a re m ntTY AUTHORITY, a
( "OUA ) .
W I T N E S S E T H:
WHEREAS the City, Okeechobee County, "Count � Florida
Y"), the Okeechobee Beach Water Association, Inc. '1 (") and OUA have entered into that certain Master Transfer A OBWA )
he
dated July 1995 '
Utility,, Pursuant to which the City Utilities, County
and OBWA Utility are to be transferred to OUA; and
WHEREAS, certain uses and services which are necessary to
the efficient operation of the City Utilities arE cu
through the City's General Fund; and rrently funded
WHEREAS, in order for OUA to operate the Utility Systems
after transfer to OUA, OVA desires that certain Uses and sere
currently funded through the City's General Fun continue ices
provided to OUA by the City pursuant to the terms and conditions be
of
this Interlocal Agreement; and
WHEREAS, the City is willing to prov
services to OUA, pursuant to the provisions of
NOW, THEREFORE, for and in consideratiq
and mutual covenants contained herein, the City
follows:
the date of Closi1. ng, The term of this Agreement 1
and continue through September 30 1d in 996 aster Tr8
the notice provisTherea
ions provided in Paragraph 5 elo%
shall be automatically renewed for additional
coinciding with the City's budget year commencing
ending on September 30 of the following year.
2• Uses and ices.
provide to OUA during the term of this Agrem nt th
and services:
a • Of f ice Stia A
currently located at City Hall,
Florida, as specifically describe Fee: $19,000.
029195 1:53pm
these uses and
s Agreement.
of the premises
,d OUA agree as
hall commence on
infer Agreement,
ter, subject to
, this Agreement
one year terms
)n October 1 and
2vy agrees to
following uses
Exclusive use Of hy.... v -
a
Office space
Okeechobee,
reto. Annual
b. CopY ervices and O�fi�o copy services and office equipment at EQuinMAnt, Use of
City 'Hall of approximate type and amount as currently used the same
b the City for the
operation of City Utilities. Annual Fee: $6,85 .
C. Financial Servic-es. Financial including payroll, accounting,services,
venfinancial services currentlyused rbyathe purchasing,
intory and any other
�' Providing utility
services. Annual Fee: $41,500.
d. Maintenance Barn. Use and ccess to the City
maintenance barn located at
Florida, together with use ofRle N
.:<}:<:k< Okeechobee,
same approximate volume as the amount umof an gasoline re the
consumed by the City in providing utility servi es.
currently
$9,150. y Annual Fee:
e• Police Dispatch, Use of police dispatch
services on weekends, holidays
$3 , 500 . :.{ Annual Fee:
f• Human Resource Services. Providing such human
resource services as requested by OUA, and the maintenance of all
OUA personnel records as requested by OUA. Annual Fee: $20,000.
3 • Payment , OUA shall pay the City tha total amount of
annual fees listed above for the uses and services provided to OUA
by the City under this Agreement, on a prorated monthly basis
beginning with the date of commencement of operation of the Utility
Systems by OUA.
4. Modifica 4-0. OUA shall have the right to modify
the terms of this Agreement to the extent of reducing the uses and
services to be provided by the City under this Agreement upon
providing the City with sixty (60) days prior written notice. In
the event the uses and services provided to OUA y the City been reduced pursuant to the provisions of this aragraph, OUA'rs
payments to the City shall thereafter be reduced by the prorated
amount of the applicable annual fees listed above
5• Termination.
Party, provided iUpon written noticeto the other
n accordance with Paragraph 12 below at least
ninety (90) days prior to the end of the then current term of this
Agreement, either party may terminate this Agreement effective upon
the termination of the then current term.
6. Billing Service r arae
billing fS. OUA sh
or City garbage collection and shall issu(
bill for water, sewer and garbage ("Bill,,) to each
garbage customer, and in compensation therefor, OU
the greater of fifty percent (50k) of the accountinc
to be included in each Bill, or seventy-nine cents i
6/29/95 1:53pm 2
all handle all
a consolidated
water, sewer or
N shall receive
service charge
$.79) per Bill.
Further, either party may *terminate this provision separate
apart from the remaining provisions of this Agr ement, upon ninety
(90) days prior written notice to the other party.
7• Attornevs' Fee In the event of any litigation
arising under this Agreement, the prevailing
litigation shall be entitled to recover all reasonable
rtattornin eys,
fees and court costs incurred in the
party. litigation from the other
8• Entire Agreement. This Agreement constitutes the
entire understanding between the parties hereto with respect to the
subject matter hereof, and except as provided under Paragraph 4
above, this Agreement may only be amended by a written instrument
executed by both parties.
9 • Gove_rnincx Law an Venue . This I
governed by and construed in accordance with the
of Florida. In the event of any legal or equital
under this Agreement, the venue of such action sh
ly within Okeechobee County, Florida, and the pa:
any other jurisdiction and venue.
10. Assignment. This Agreement may n
any party without the prior written consent of t
11. Waiver. No waiver of any pr
Agreement shall be valid unless in writing and si
or parties against whom the waiver is charged.
12. Notices. All notices, requests, c
communications hereunder shall be in writing
delivered or sent by registered or certified mail
addresses:
If to the City:
If to OUA:
However, either party may,
other party written notice of some other addresso to
cation to such party shall be sent, in which event
party shall be personally delivered or sent by
certified mail to that address. Notice shall be deer
6/29/95 1:53pm
3
Ireement shall be
laws of the State
le action arising
11 lie exclusive -
ties hereby waive
t be assigned by
e other party.
ision of this
ed by the party
emanas and other
and personally
to the following
ne, give to the
which communi-
otices to such
registered or
ed effectively
given hereunder when personally delive United States milred or, deposited in the
a, postage prepaid, registered or certified
return receipt requested.
13. Unenforc abi�it
this Agreement shall be held. invalid unenforceable, or ulrceablef any siosuch
invalidity or unenforceability shall not, if
validity or enforceability of any other Possible, affect the
Agreement shall, in that event, be construedlino llereofr asthis
the invalid or unenforceable provisions were omitted.
IN WITNESS WHEREOF, the parties have executed this
Agreement as of the day and year first above written.
ATTEST:
Clerk
ATTEST:
Secretary
F: %dsu\mdmlwld%OKfiECNOB.SA 1
6/29/95 1:53pm
CITY OF
By:
Mayor
, FLORIDA
APPROVED AS TO FOR[ AND
CORRECTNESS:
By:
City Attorney
OKEECHOBEE UTILITY A1UTj
By:
Chairman
APPROVED AS TO FORM AND
CORRECTNESS:
By:
Au
4
ty Att
•
HARTMAN &_
PRINCIPALS:
GhM12 Me lea W. Dnke P(;.PF. engineers, hydrogeologists, surveyors & manage em n G raid C. 1lartma'n PE.
Mark 1. Luke, P.I..&
Mark A. Rynning, PE.
Harold E. Schmidt, Jr., P.E.
August 2, 1995
Mr. L. C. Fortner, Jr.
Superintendent
Okeechobee Beach Water Association, Inc.
8840 Highway 78 West
Okeechobee, Florida 34974-9787
Subject: OUA Rates and Charges
Dear Mr. Fortner:
This correspondence is in response to your letter dated July
clarification of specific issues and charges pertaining to the p
We are currently drafting a Uniform Extension Policy (UEP)
rules and regulations concerting the systems, customers and a
until the draft is available for distrib t'
INC.
ASSOCIATES
William D. Musser, P.E.
Scat C. Quinlan, P.E.
Timothy A. Nochull, P.E.
Marco H. Rocca, C.M.C.
HAI #94-120.02
Reginald L. Tisdale, P.E.
John W. Vogt, P.E.
25, 1995. The letter asked for
opos d OUA rates and char e
u ion, prunininary answers to
addressed in the numeric order in which they were listed.
g s.
will provide the complete
ion of charges. However,
our specific questions are
1 O l tion: Meter fees of $500.00 is based on a standard residential connection. If a
customer requests a 5/8 inch meter to serve three units on the same lot, would the Capital
Connection Charge be $500.00 or would the customer be charged $500.00 per unit?
MU1: To clarify, the Meter Fee and Capital Connection Cl
distinct charges. The Meter Fee is designed to recover the cos
water meter (materials, labor, etc.). The number of units that v
is irrelevant with regard to the Meter Fee. Thus, for a customer
of a 5/8 inch meter to serve three units, the Meter Fee will be $!
Capital Connection Charges, however, are based on ERCs wl
to dwelling unit criteria, fixture units for non-residential, or i
(gpd) as requested by the customer. The Capital Connection C
account is calculated as the greater of the Capital Connectic
(1) the number of ERCs (ERCs are calculated based on 1 ERC
houses, 0.80 ERC for multi -family units, and 0.33 ERC for
residential fixture units; or (3) the requested average gallons P
(the average gpd for 1 ERC).
201 EAST PINE STREET - SUITE 1000 • ORLANDO, FL 3
TELEPHONE (407) 839-3955 • FAX (407) 839-3790
ORLANDO FORT MYERS
JACKSONVILLE
ge are two separate and
incurred for installing a
be served by the meter
questing the installation
:n are computed pursuant
pacity in gallons per day
irge for a master metered
Charge per ERC times:
)r single family detached
J park spaces); (2) non -
day divided by 250 gpd
TALLAHASSEE
L. C. Fortner, Jr.
August 2, 1995
Page 2
The Capital Connection Charge for your example (5/8 inch
be based on the number of units and the appropriate ERC
single family houses, the Capital Connection Charge would
factor X $500). However, if there were 2 mobile homes
Connection Charge would be $965 (2 multi -family units
$800; 1 RV unit X 0.33 ERC factor X $500 = $165; $800 +
However, if the request was for 25,000 gallons of water per
are being served, the Capital Connection Charge would
capacity. As will be addressed in the UEP, the basis for
250 gallons per day (gpd) per ERC. Therefore, the Capit
example would be $5,000 (25,000 gpd requested divided
$500/ERC).
2• Oue ion: What guidelines will be used to determine meter
Answer: On a general basis, all single family and 1 ERC
3/4" meter. Larger sized meters will be determined by i
criteria provided by the applicant. All meter sizes and i
approved by the utility. The guidelines for most applicatio;
appropriate American Water Works Association (AWWA)
circumstances may arise in which, for fire protection or i
certificate may be required.
meter serving 3 units) would
ictor. If the 3 units were all
be $1,500 (3 units X 1 ERC
nd 1 RV space, the Capital
0.80 ERC factor X $500 =
$165 = $965).
.y, even though only 3 units
en be based on requested
;rage daily consumption is
Connection Charge in this
250 gpd/ERC basis times
for a customer?
guests will utilize a 5/8" x
utility based on demand
tallations will have to be
will be as provided in the
ianual. However, criteria
er reasons, an engineer's
wastewater deposits to be paid by the customer. 143• O ion: The proposed rates and charges do not includean un
ow will the deposits be determined and
how much deposit will be required for new customers?
Answer: Deposits are addressed in the proposed UEP and
for single family and non-residential accounts are as follows
Water Deposit $ 70.00
Wastewater Deposit 80.04
Water and Wastewater Deposit $150.00
The deposits, in general, are based on the level of service risk
payment of a service. The estimated period of risk for a ml
approximately 70 days. We have assumed a risk factor of 3 mo;
bill for a single family customer utilizing 5,000 gallons of wa
: resolution. The deposits
5/8 inch meters:
associated with the non-
mth of utility service is
zths. The monthly water
'er per month is $24.35.
L. C. Fortner, Jr.
August 2, 1995
Page 3
This amount times the 3 mo
nth risk factor provides a required water deposit of $73.05.
For the purpose of administrative efficiency, this figure has been rounded to $70.00.
The deposit for wastewater is calculated in the same manner. A 5,000 gallon monthly
service bill of $27.44 adjusted for the 3 month risk factor computes to a deposit of
$82.32. Here again, the calculated figure has been rounded to $80.00 for administrative
purposes.
Deposits for other meter sizes and master meters will be calculated based on an ERC
multiple of the water and/or wastewater deposit for a 5/8-inch customer.
4. Q: What guidelines will be used to determine the type and size of the backflow
Prevention device required for a customer?
Auer: The backflow prevention devices are addressed in the proposed UEP. Sizing
will be a function of the demand criteria associated with the meter size and the appro-
priate device as required by the proposed UEP.
5• O ion: Will the OUA charge a fee for testing and/ r repairing the backflow
prevention devices? If so, how much?
Answer: If testing is requested by the customer or if repairs are required due to
tampering or damage caused by the customer, the customer will pay for the test and/or
repair at actual cost as determined by the Executive Director. If testing or repair is
performed as part of an on -going program, the Utility will bear a cost of such service.
6. O loll: For meters larger than 5/8 x 3/4 inch, will the charg s for Meter Fees, Capital
Connection Charges, backflow prevention be calculated using he ratio of the maximum
flow of the meters?
Answer: Generally, no. The charges will be based on ERCs or other criteria as specified
in the proposed UEP.
L. C. Fortner, Jr.
August 2, 1995
Page 4
?• Oues ion• How would the Meter Fee and Capital Connecti Charge be calculated on a
60-unit RV park?
Answer: The Meter Fee and Capital Connection Charge
calculated as follows for water:
Pursuant to proposed rate resolution, or if greater than
installation.
CabltaIII CnnnP�tipn h"rg (e Dater)
60 units X 0.33 ERC per unit factor for RV spaces X
plus the charges associated with any additional ERCs b
a 60-unit RV park will be
1 inch, actual cost of meter
per ERC = $9,900.00
served by the meter.
8. O c ion: What size meter (minimum) would be required for � 60-unit RV park?
ADZwer: The meter size for a 60-unit RV park will be
engineering principals, AWWA standards, and demand
customer.
We hope this helps to clarify the proposed OUA rates. However,
questions, please feel free to call.
Very truly yours,
Hartman & Associates, Inc
141,1;1,
Marco H. Rocca, C.M.C.
Finance Manager
MHR/DBP/kh/C4/Fortner2.mhr
cc: Kim Love, Acting Administrator, OUA
Jack Coker, Chairman, OUA
Michael Minton, Esq., Dean, Mead & Minton
Gerry Hartman, P.E., HAI
Daryll Parker, MBA, HAI
i on generally accepted
is as requested by the
you have any additional
0
RESOLUTION NO. 95-5
A RESOLUTION ADOPTING USER RATES AND CHARGES FOR OUA
COMMENCING FISCAL YEAR 1995-1996; PROVIDING FOR FILING OF
A COPY OF RATES WITH AUTHORITY CLERR; AND PROVIDING AN
EFFECTIVE DATE.
NOW, THEREFORE, BE IT RESOLVED by the Okeechobee Utility
Authority Board as follows:
I. After holding a properly advertised public hearing, the
Okeechobee Utility Authority Board hereby adopts the Schedule of
User Rates and Charges commencing Fiscal Year 1995-1996 as set
forth in Exhibit "A" attached hereto and incorporated herein by
this reference.
2. Copies of the Schedule of User Rates and Charges shall be
filed with the Authority's Clerk, and available for review during
normal working hours at the offices of Okeechobee Utility
Authority, pursuant to the provisions of Chapter 119, Florida
Statutes.
3. This Resolution shall be effective
adoption. immediately upon its
DONE AND ADOPTED in regular session by the Okeechobee Utility
Authority Board this 8th day of August, 1995.
ATTEST: OKEECHOBEE UTILITY AUTHORITY
Rine Love, Clerk By
Jack Coker, Ch irman
r1\ACC\n0c\0REEC808.R85
OWN
. EXHIBIT "A"
OKEECHOBEE UTILITY AUTE
WATER AND WASTEWATER RATE
A. WATER RATES, FEES AND CHARGES:
1. Meter Installation Fees:
Meter i .
5/8 x 3/4"
I"
Larger than 1 "
t
2. Bic' - Preven ion Feet:
MetMet-- =
3/4"
1"
Larger than 1 it
the
ULE
Fee
$ 500
$ 1,250
'ual cost as determined by
E ecutive Director
Fees
RP _ DC
$ 205 $ 60
$ 225 $ 70
Actualcost as determined by
the E ecutive Director
3. Water v t m lal �'onnp�tion hatQP•
Meter i - Charge
5/8" x 3/4° $ 50 per ERC
4. Rase eFacility charve
Single Family (individually metered dwelling units
including mobile homes and RVs)
Monthly Charge
3/4" $ 1 .07
1"
30.18
6 .35
2" +
9 .56
Multi -Family Monthly Charge
a. Master metered residential dwelling units
(including mobile homes, apartments, condos,etc.)
Per Dwelling Unit $ 9.66
b. Master metered R.V.
Per RV or RV Space (pad) 398
DBP/kh/Misc3/0UA-Fees.tab
HAI #94-120.01 1 of 8
080795
. � r
Zion -Residential_ (all other uses including hotels
Metes
and motels)
3/4" $
12.07 -
1"
30.18
1-1/2"
60.35
2"
96.56
3"
93.12 '
4"
01.75
6"
03.50
8"
65.60
5. otO on
Block I
Block 2
6. Block Allow n c
Single F�m_ly_
All Meter Sizes
Multi -Family
Per ERC
Non Residential
Meter i .
5/8"
1"
1-1/2"
2"
3"
4"
6"
811
A
$ 2.04
$ 3.08
ock 1
(Monthly
0-3,
0-3-
0-3
0-7
0- 15
0-24
0-48
0-75
0 - 15(
0-24(
B• WASTEWATER RATES, FEES AND CHARGES:
1 • Wastewater T ine F s;
Size of_Sewer ieryice
Fee
4"
8„ $ 306
$ 765
Line fees for connections larger than 6 inch shall be b ed.m
DBP/kh/Misc3/0UA-Fees.tab
HAI #94-120.01 2 of 8
Block 2
(Monthly Gallons)
Above 3,000
Above 3,000
Above - 3,000
Above - 7,500
Above - 15,000
Above - 24,000
Above - 48,000
Above - 75,000
Above - 150,000
Above - 240,000
080795
•
actual cost as determined by the Executive Directot.
DBP/kh/Misc3/0UA-Fees.tab
HAI #94-120.01 3 of 8
080795
0
2. wastewater Sv tem t r.)nne - --•
•a_.ii l-,il rBP•
meter i=
Charge
5/8" x 3/4" $
59 per ERC
3. Base Facility Charge
Smelt F milt/ (individually metered dwelling t
nits
including mobile homes and RV;)
Mo
thly Charge
$
12.24
lot
"
30.6061.20
1-1/2" r
2„
Multi-F mdx
97.92
a. Master metered residential dwelling units
(including mobile homes, apartments, condos, etc.)
Per Dwelling Unit $
9.79
b. Master metered R.V.
Per RV or RV Space (pad)
4.04 -
Non-Res'd ntial (all other uses including hotels and
Met---er--
otels)
3/4" $
2.24
lot
1-1/2"
0.60
2°
1.20
3„
7.92
4„ 195.84
6„ 306.00
612.00
8"
979.20
4.lonat:e Ate (All �l cc a nPr t nnn
ate
All usage
$ .04
5. maimed Water:
Rate
Volumetric charges for reclaimed water
shall be based upon metered consumption
per 1,000 gallons and billed monthly. $ .16
DBP/kh/Misc3/0UA-Fees.tab
HAI #94-120.01
4of8
080795
6 Rate
Septage charges per 1,000 gallons. $ 100
7• Industrial WactP pr•
To be determined on an individual basis according to volume
and characteristics of wastewater by special agreement.
S. High Strength Industrial tzlae+,.., ater Surcharop•
To be determined on an individual basis according to volume
and characteristics of wastewater by special agreement.
C• FIRE LINE CHARGES: r
1 • Sole Proprietary Fire Protection Systems
(Sprinkler Systems):
Size of Service:
4"
6"
8"
10"
2• Hydrant Meter:
The charges for temporary water service delivered
through a fire hydrant meter shall be as follows:
a. Set-up charge
b. Monthly service charge
c. Consumption Rate per 1,000 gallons "
d. Meter relocation (per move)
e. Removal of meter by other than OUA forces
f. Penalty for unauthorized taking of water from
hydrant, in addition to Consumption Rate
(Consumption to be estimated by the
Executive Director)
DBP/kh/Misc3/OUA-Fees.tab
HAI #94-120.01
5 of 8
35.00
70.00
50.00
00.00
00
2.00
5.00
080795
D. DEPOSITS FOR SERVICES (MINIMUM): Deposit
a. 5/8" x 3/4" meter:
Water service only
Wastewater service only
Water and wastewater service
Meter i .
1"
2"
3" r
4
6"
8"
E. SPECIAL SERVICE CHARGES, PER OCCURRENCE:
1. Turn on, except for new service.
2. Turn off at customer request.
3. Turn off for delinquency in payment of a bill
or failure to pay increased water deposit as
required.
4. Performance of any of above services after
regular office hours..
5. Final notices mailed to delinquent accounts.
6. Turn water off and remove meter at single
family customer request for more than 30 days
and less than 365 days in order to discontinue
monthly Base -Facility Charges.
a. 5/8" x 3/4" meter $
7. Install meter and turn water on within 365
days after disconnection was done at same
single family customer's request at which time
monthly Base Facility Charges will resume:
a. 5/8" x 3/4" meter $
DBP/kh/Misc3/OUA-Fees.tab
HAI #94-120.01
6 of 8
$ 70.00
$ 80.00
$ 150.00
Water
$ 175
$ 350
$ 560
$ 1,120
$ 1,750
$ 3,500
$ 5,600
10.00
10.00
10.00
30.00
per ERC
per ERC
Wastewater
$ 200
$ 400
$ 640
$ 1,280
$ 2,000
$ 4,000
$ 6,400
080795
• � N
8. Install meter and. turn water on for
'Same
anY
customer after 365 days where water was
fees for new water
and/or sewer service
discontinued and meter removed.
9. Meter reread at customer's request:
a. Standard scheduling
$ 20.00
b. By appointment
$ 30.00
c. No charge for discrepancy of 10,000
gallons or more
10. Testing water meter at customer's request:
a. Test result showing meter reads high (fast) I
lo charge
g
b. Test results showing meter reads
correctly or below (slow):
5/8" x 3/4" meter
$ 25
1" meter
$ 35
1-1/2" meter
$ 50
2" meter
$ 75
Above 2" meter Actual
cost as determined
11. Illegal turn -on or tam b
Pe�B with water meter;
Executive Director.
Per occurrence service line to be removed after
50.00
second occurrence at same location and same
occupant.
12. Reinstallation of service line after removed due Same
to illegal turn on or tampering
fees for new water
with service.
13. Developer or owner changing meter from one an
or sewer service
location to another without permission of OUA;
Per occurrence.
14. Destruction of meter and/or related equipment: $
50.00
Charge based upon actual replacement cost (labor and
administrative charge $100,
materials) plus a 15%
or whichever is greater;
per occurrence.
15. Returned check:
$15 or 5% of the amount of the check, whichever is greater,
applicable fees in the event service is discontinued
plus other
16. Account record history, requested by customer:
a. 12 months or less
$3•
b. Over 12 months
Per record
$2.5
per 1 /4 hour or fraction
17. Recording of easements, annexation u.....,JL
agreements, etc. $10 each page
DBP/kh/Misc3/0UA-Fees. tab
HAI #94-120.01 7 of 8
080795
•
18. Project plan review:
The Okeechobee Utility Authority will review all
of all proposed extensions
plans and specifications of
and/or developments aid
pay a one-time fee of $10.00 per page of drawing
owner or developer will
Project plans will not be
approved until full payment of the fee is received.
Project plans will not be approved until full aym
p
10.00 per page of drawing
nt of the fee is
19. Project Inspection:
received.
All projects must be inspected by the Okeechobee
Utility Authority and the
owner or developer shall pay fees at the rate of $
office hours and 1-1/2 times that rate after regular
0 per hour during regular
and paid before C.O. is approved.
office hours billed monthly
20. Miscellaneous charges for service not included above:
Actual cost of materials and labor required plus an
of 15% or $25, whichever is greater, to be determi
administrative charge
Director or his/her designee.
ied by the OUA Executive
21. Delinquent fee on activ unpaid accoun �� L.
/o °
per month on delinquent
22. Laboratory test by OUA: amount
due
The Okeechobee Utility Authority may perform laboratory
for a developer individual
testing
or at the following prices:
a. B.O.D.
r Test
$
b. Suspended solids
15.00
$
c. Chlorine residual
12.00
$
d. Fecal coliform
5.00
$
e. Total coliform
5.00
$
f. Chloride
5.00
g. Fluoride $
2.00
$
h. pH
0.00
$
i. Total dissolved solids
3.00
$
j. Dissolved oxygen $
6.00
k. Turbidity
.00
$
.00
The above testing will be done in the OUA's laboratory. Any
sent to a certified lab and the developer or individual will be b
the testing plus a 15% administrative charge. All samples mu
OUA laboratory in approved containers. If the OUA collects
testing in the field, then actual cost of labor plus a 15% admini
be added to the above fees.
DBP/kh/Misc3/0UA-Fees.tab
HAI #94-120.01 8 of 8
ther testing will be
led for the cost of
be delivered to the
mples or performs
trative charge will
080795
•
u
ECONOMIC, MARKETING AND MANAGEMENT CONSPLTANTS
July 10, 1995
Mayor James Kirk
City of Okeechobee
55 SE Third Avenue
Okeechobee, Florida 34974
Mayor Kirk,
I just received a copy of the June 30, 1995 letter from Hartman &
Associates, Inc. to Michael Minton today. I am distressed at the
contents of the letter, especially after the oral commitments made
by Mr. Hartman at the June 27, 1995 City Council meeting.
After review of the letter, it has become clear that the City of
Okeechobee will be substantially harmed by this agreement. Mr
Hartman stated that the Operating Account and the Bond Sinking Fund
are estimated by them to have a zero balance at the end of the
fiscal year. He also stated, based on questions from Councilman
Watford, that any funds remaining in the account will be retained
by the City. His letter of June 30 contradicts those claims.
z believe the City has two options if you wish to proceed with the
Authority. The first is to remove the Operating Account and the
Bond Sinking Fund from the transfer of assets. The second is to
increase the amount to be paid to Okeechobee to $4.6 million to
account for the true value of the system of $7 , 6 million as defined
in our report to you presented at the June 13, 1995 City Council
meeting.
If you have any questions, please call.
Very truly yours,
PMG Associates, Inc.
Philip M. Gonot
Vice President
3880 N. W. 2ND COURT • DEERFIELD BEACH, FLORIDA 33442 • (305) 427-5010
HARTMAN & ASSOCIATES, INC.
PRINCIPALS:
James E. Christopher, PE. engineers, hydrogeologists, surveyors & management consultants
Clurks W. Make. PG.
Gcnld C. Hartman, P E.
Mark I. Luke, P.L.S.
Mark A. Rynning, P.E.
Harold E. Schmidt, Jr., P.E.
June 30, 1995
C C f-/
ASSOCIATES
William D. Musscr, P.E.
Scott C. Quinlan, P.E.
Timothy A. Hochuli, P.E.
Marco H. Rocca, C.WC
Reginald L. Tisdale, P.E.
Jot,n W. Vogt, P.E.
HAI #94-120.01
Mr. Michael D. Minton, Esquire)
DeanMead & Minton"
1903 South 25th Street, Suite 200 l� .k
Fort Pierce, Florida 34947
Subject: Okeechobee Utility Authority
Dear Mr. Minton:
In order to assist in clarifying the cash settlement and terms of the transfer of the City
Utilities to OUA, we are providing herein our understanding of the approach to be used at
the time of transfer.
1. The City is to receive from OUA a $3,000,000.00 payment at losing. `��r it
2. The City shall transfer to OUA at Closing all of the cash, accounts receivable and
i�
accrued assets attributable to the following funds and accounts within the City Utility
Funds, which shall be not less than the corresponding amountslisted below:
a. Fund 517 Debt Service Reserve Fund $511,534.00
b. Fund 517 Debt Service Sinking Fund Accounts $495,388.00
C. All Customer Deposit Funds $387,247.00
3. The City shall transfer to OUA at Closing all accounts receivable, deposits, prepaid
expenses, and accrued assets as would normally exist and accumulate from the
operation of the City Utilities as of Closing.
4. The City shall transfer to OUA at Closing all of the Construction, Improvement, and
Renewal & Replacement Funds, which had a starting balance of $1,628,874.00 as of
October 1, 1994, reduced to their actual fund balances at Closing, with a minimum
balance of not less than $0, subject to a post Closing determination that all construction
projects undertaken by the City for the benefit of the City Utilities have either been
fully paid, or that sufficient funds remain in the above -referenced Funds to fully settle
all remaining contract liabilities, including any and all claims for retainage.
201 EAST PINE STREET • SUITE 1000 • ORLANDO, FL 3?801
TELEPHONE (407) 839-3955 • FAx (407) 839-3790
ORLANDO FORT MYERS JACKSONVILLE TALLAHASSEE
n
LJ
Mr. Michael D. Minton, Esquire
June 30, 1995
Page Two
5. The City shall retain the cash balance at Closing remaining in the Fund 536 Revenue
Fund, after all payments, transfers, settlements and other obligations of the Fund 536
Revenue Fund have been completely fulfilled, including satisfaction of any
outstanding requirements pursuant to City resolution or ordinances regarding the City
Utilities' debts through Closing. The intention of this paragraph is that after all
operating payables, other liabilities and funding requirements, including any
underfunded construction contracts, have been fully paid, the remaining cash balance
may be retained by the City.
Very truly yours,
Hartman & Associates,
Marco H. Rocca, C.M.C.
Finance Manager
MHR/kh/C3/Minton 14.mhr
cc: Jack Coker, Chairman, OUA
Kim Love, Interim Administrator, OUA
Mayor James E. Kirk, City of Okeechobee
George Long, County Administrator, Okeechobee County
L. C. Fortner, Superintendent, OBWA
Gerald C. Hartman, P.E., HAI
JUL-07-95 FRI 14:47 DEAN A MINTON FAX N01 4074 77 P,02/02
P. O. qOM 5757
"OFT PIFOCV., C•LOR,IOA 2409—Qsi7
YiA 151MAX
John Drago
City Administrator
55 SE Thud Avenue
Okeechobee, FL 34974
Dear John:
DEAN, MEAD & MINTON
ATTORNEYS ANO COUNSELORS AT LAW
IAOa SOUTH 2STM STNITT
SUITE 200
I VMI "MNCL, "LPPIOA 34547
July 7, 1995
Re: Chapter 180 Hearing/Okeechobee Utility
As you are aware, the City's Chapter 180 hearing is si
July 11 at 6:00 p.m. In light of the fact that we are required under I
materials for the Okeechobee Utility Authority Board meeting, fulfill
Section 189.423 of the Florida Statutes and since the requirements ur
identical to the requirements of Chapter 189, we have prepared as a
City Council members, a similar set of materials focusing on the tray
upon the City to constitute your Chapter 180 hearing materials. You
afternoon via telefax from Hartman & Associates, a draft of the Chal
copy of which will be telefaxed to John Cook. If you wish to utilize
July 11 meeting, please contact us Monday with any thoughts or com
that they may be finalized in time for presentation at the Tuesday eve
not hear from you to the contrary, we will have the documents finali;
for presentation at the public hearing.
With best regards, I remain,
MDM/dj
cc: John Cook, Esq. (via telefax)
Mayor James Kirk
Jack Coker
Kim Love
Gerald Hartman
r: 49xWmVI404dj.34
(407) 464.7700
(407) 562 7700
"AM (407) 404 •70?7
luled for Tuesday,
pter 189 to prepare
the conditions of
Chapter 180 are
-test' to you and the
:ion as it impacts
I be receiving this
180 materials, a
se materials for the
its you may have so
> meeting. If we do
in their current form
Ii04 w, M/�rn� COw, sTgw, EILC�C.OWOPT.+, C A 1N DII[VAND COVNT/
GAPOUANO & BOLAFTM, P. A. ` n (J AN, MCA01 $PICLVpQ.CLI CjOLOMAN & 60►O
"CA w$-moo M E A D 7" • w,*
07/07/95 18:27 0407 03790 HARTMAN ASSOC
0 (0 001/017
AIM HARTMAN & ASSOCIAiTES, INC.
Wfflengineers, hydrogeoiogists, surveyors do management consultants
201 EAST PINE STREET - &UITE 1000 - OR ANDO. FL $2801
TELEPHONE (407) 839-3955 - FAX (7) 039.3790
FAX (ADMIKAMLITY EN(1./NYDROa • (7) 539-3700
FAX (CIVR EN0J3URVEY/F1NANCV • (07) 481.8447
FACSIMILE TRANSMITTAL
TO: QtA24M:
CO ( DATE:
e
RE:
r
117E ARE SENDING YOU AGES, INCLUDING THIS OVER SHEET.
THESE PAGES ARE BEING TRANSMITTED AS INDICATED ELOW:
D AS REQUESTED
at -fop YOUR USE
�R YOUR COMMENTS
❑ FOR YOUR APPROVAL
HARD COPY:
[] WILL BE SENT VIA REGULAR MAIL
O WILL BE SENT VIA OVERNIGHT MIL
p WILL BE SENT BY FACSIMILE ONLY
MESSAGE:
IF THERE ARE QUESTIONS OR PROBLEMS WITH T�S TRANSMITTAL.
PLEASE CALL (407) 839--3955
f
.*K-CA%s
07/07/95 18:27 $407 03790 HARTMAN ASSOC 0 Z 002/017
DRAFT
CITY OF OKEECHOBEE
PUBLIC BRIEFING DOCUMENT
CHAPTER 180.301 FLORIDA STA
INVOLVING THE TRANSFER OF UTILITY SYS EM ASSETS
AND CERTAIN LIABILITIES FROM THE CITY OF KEECHOBEE
TO THE OKEECHOBEE UTILITY A
JULY 1996
TY
07/07/95 18:28 0407 0 3790 HARTMAN Assoc
Q003/017
Section
No.
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
11.0
BRIEFING DOCUMENT
CHAPTER 180.301 FLORIDA STA
TABLE OF CONTENTS
Title
Background and Chapter 180.301 Requirements
Income and Expense Statement
Balance Sheet
Statement of the Existing Rate Base
Physical Condition of the Facilities
Reasonableness of Purchase Price and Terms
Impacts of Transfer
Additional Investment Required
Alternatives to the Transfer
Statement of Quality Service
Statement of Public Interest
Appendix A — Reese, Macon & Associates, Inc. Transmittal
Appendix B Knepper & Willard, Inc. Letter
Appendix C — Okeechobee Beach Water Association Letter
Appendix D — General Purpose Financial Statements and Ac mpan3
Information, City of Okeechobee, September 0, 1994
Appendix E — Master Transfer Agreement and Related
Appendix F -- Hartman & Associates, Inc. Letter
Appendix G — Okeechobee Utility Authority Preliminary
Charges Dated May 9, 1995 and Revisions
r Rates and
-i-
07/07/95 18:28 0407 03790 HARTMAN ASSOC
Q 004/017
1.1
SECTION 1
BACKGROUND AND CHAPTER 180.301
GENERAL,
On November 10, 1994, the Board of County Commissioners of
"County") and the City Council of The City of Okeechobee ("City")
agreement to cooperatively form the Okeechobee Utility Authority ("(
OUA is to regionalize the water and wastewater services being pro,
customers in the affected service area. To accomplish this, the City
Beach Water Association ("OBWA") wilI each transfer the assets of th
wastewater systems to the OUA, which will then own and operate then
The description of the utilities in this section are based on data and d+
entities' staff and consulting engineers (see Appendices A, B and C).
IS - WHERE IS" transfer.
1.2 CITY OF OKEECHOBEE
1.2.1 j
The City owns and operates a water and wastewater utility which pri
generally illustrated on Maps I and 2. In addition, the City provides
to OBWA.
The City's utility consists of two water treatment plants, one wa;
disposal system, a water transmission and distribution system, and a
collection system. Service from these facilities are provided to ap
plus the bulk service account of OBWA.
Okeechobee County (the
entered into an interlocal
QUA"). The purpose of the
tided to the residents and
, County and Okeechobee
eir respective water and/or
i as a combined system.
provided by the
The transaction is an "AS
services to the areas
potable water service
treatment plant and
ter transmission and
:ely 4,420 accounts,
1-1
07/07/95 18:28 0407 803790 HARTMAN ASSOC
IZ 005/017
The surface water treatment, plant was constructed in 1926. The plant site contains
approximately 11 acres fronting S.R. 78 just west of U.S. 441. The plant has a permitted
capacity of 3.2 million gallons per day (MOD) with a record demand of between 1.5 to 1.8 MOD
in average daily flows, Maximum daily demand has been 2.5 MOD,
The groundwater treatment plant was constructed in 1994 on a 150- cre site. The plant has a
permitted capacity of 1.0 MOD with the ability to expand to 2.0 MOD. There are seven wells,
four of which are equipped with pumps.
The City's water transmission system consists of approximately 51
diameter from 6 inches to 24 inches. The distribution system also i
of pipeline ranging in size from 2 inches to 4 inches in diameter.
1.2.2 Wastewater
The City's wastewater treatment plant was constructed in 1984 and is
north of the City limits as illustrated on Map 2. The wastewater treatr
capacity of 0.60 MOD and experiences a current average daily flow c
disposed of by spray irrigation to areas at and adjacent to the site. Shu
spreading at the site.
of pipeline ranging in
5 a significant amount
located about three miles
lent plant has a permitted
f 0.50 MOD. Effluent is
lge is disposed of by land
The wastewater transmission system consists of approximately 128,50 linear feet of force main
ranging in size form 2 inches to 18 inches in diameter_ There are 44 lift stations equipped with
pumps ranging in size from 4 to 40 horsepower,
The collection systems consists of approximately 163,200 linear feet
1.3 OK.EECHOBEE COUNTY
1.3.1 Water
The County receives potable water treatment, transmission and distri
City for the services areas discussed herein. There are no County water
gravity sewers.
services from the
facilities.
1-2
07/07/95 18:29 0407 *3790 HARTMAN ASSOC
�J008/017
1.3.2 WLqcvY
In many areas adjacent to boundaries of the City, the County is
transmission, treatment and disposal services by the City. F
operates one 0.10 MOD wastewater package plant primarily ,
Tantie Recreational Area, represented as number 14 on Map 2.
1.4 OKEECHOBEE BEACH WATER ASSOCIATION (OBWA)
1.4.1 Water
OBWA purchases potable water from the City. OBWA has three
gallons per minute, located at the City's water treatment plant. OB Wj
water distribution system providing service to about 3,237 accounts,
areas of Okeechobee and in the Buckhead Ridge area of Glades Cou
Map 1. In addition, OBWA operates a 0.10 MGD water treatment
serves about 100 homes at King's Bay.
The water transmission system consists of two elevated storage i
75,000 gallons, and approximately 108,000 linear feet of pipeline
to 10 inches in diameter. In addition, there is a significant an
ranging in size from 2 inches to 6 inches in diameter.
1.5 CUSTOMER STATISTICS
Tables 1-1 and 1-2 provide a breakdown of customers and metered
billing records of the City and OBWA.
d wastewater collection,
, the County owns and
the needs of the Okee-
amps, each rated at 700
also owns and operates a
)th in the unincorporated
y generally illustrated on
ant at King's Bay, which
each with a capacity of
ig in size from 6 inches
of distribution pipeline
as obtained from the
1-3
07/07/95 18:29 0407 03790 HARTMAN ASSOC
QJ007/017
1.6 CHAPTER 180.301 REQUIREMENTS
This potential public acquisition of a utility is governed by Chap�er 180.301 of the Florida
Statutes which states:
"No municipality may purchase or sell a water, sewer, or wastewater reuse utility that
provides service to the public for compensation, until the governing body of the
municipality has held a public hearing on the purchase or sale and made a
determination that the purchase or We is in the public interest. In determining if the
purchase or We is in the public interest, the municipality shall consider, at a
minimum, the following-
(1)
The most recent available income and expense statement
or the utility;
(2)
The most recent available balance sheet for the utility,
listing assets and
liabilities and clearly showing the amount of contributions
-in -aid -of -
construction and the accumulated depreciation thereon;
(3)
A, statement of the existing rate base of the utility for regu
story purposes;
(4)
The physical condition of the utility facilities being purchased
or sold;
(5)
The reasonableness of the purchase or sales price and to
s;
(6)
The impacts of the purchase or sale on utility customers,
both positive and
negative;
(7)
Any additional investment required and the ability and
willingness of the
purchaser to make that investment, whether the purchaser
is the municipality
or the entity purchasing the utility from the municipality;
(8)
The alternatives to the purchase or sale and the potential
impact on utility
customers if the purchase or sale is not made; and
(9)
The ability of the purchaser to provide and maintain high
-quality and cost-
effective utility service, whether the purchaser is the municipality
or the entity
purchasing the utility from the municipality.
The municipality shall prepare a statement showing that purchase or sale is in the
public interest, including a summary of the purchaser's experience in water, sewer,
or wastewater reuse utility operation and a showing of financial ability to provide
the service, whether the purchaser is the municipality or the ent ty purchasing the
utility from the municipality,"
1-4
07/07/95
18:30 0407 03790
HARTMAN ASSOC
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1.7
THE TRANSFER TRANSACTION
The transfer transaction involves in general the following:
(1) The dedication by the County of the Okee-Tantie w
and clear, the transfer of the right to acquire the
assets, the elimination of the franchise fee by the
contributing $3,000,000 to the OUA.
(2) The dedication by the OBWA of all assets, land, ri
inventory, intangible and tangible items, easements a
OUA. The amount of depreciated original cost assets
closing is approximately $3,000,000; and
(3) The dedication by the City of its water and
associated assets complete as described in the
vater facilities free
WA facilities and
ty and the County
s, cash, contracts,
other items to the
I cash expected at
system and
such outstanding debt, debt reserve fund, sinking fund, customer deposits
and the remainder of the construction fund. The other .4 bal
reserving for other outstanding trade accounts payable,
City. A payment of $3;0009000 to the City by the (
generally offset the net transferred asset value exca
County and OBWA.
As a result of the above three (3) transfers, the original cost net asset
should approximate $9,000,000. It should be noted that the Sou
Management District (SFWMD) has provided grants to support the
OUA and may provide additional grant(s) for 1~ Y 1996. In addition, Ol
several grant applications as set forth in Section 7.3 herein.
1.8 EVIDENCE ON FILE OR AVAILABLE
This briefing document presents only a summary of the evidence on
Those files of the OBWA and its consultants, the City and its consultant!
its consultants, SFWMD, and the OUA and its consultants which are 1
included by reference either in the briefing document text or appendices.
ances, after
retained by the
is required to
19 that of the
le of the OUA
Florida Water
Tmation of the
has submitted
le or available.
the County and
1blic record are
1-S
07/07/95 18:30 0407 03790
HARTMAN ASSOC
0 009/017
Water
)Residential
City
County
OBWA
Subtotal
Multi -Family
City
County
OBWA
Subtotal
Commercial
City
County
OBWA
Subtotal
Combined Water
City
County
OBWA
Total
TABLE 1-1
OKEECHOBEE UTILITY AUTHORITY
CUSTOMER AND $ILLTNG STATIS ICS
MARCH 1994 THROUGH FEBRUARY 1995
1,621
2,007
3,157
6,785
1,621
7,213,076
2,007 1
2,924,000
3.161 1
9 524 400
6,789 3
9,661,476
120
557
11,489,000
88
756
32,472,000
0
0
0
208
1,313
53,961,000
411
660
61,257,000
173
'399
46,343,000
190
439
6
742 300
764
1,497
17
,342,300
2,152
2,268
3.337
7,757
2,838 17 ,959,076
3,162 18 .739,000
3,600 17 266 700
90599 53 9964,776
Flow Per
BRC Per Mo
4,998
4,274
2,887
3,801
3,215
3,579
0
3,42S
7,740
9,691
12,679
9,707
5,285
4,790
4,080
4,670
07/07/95 18:31 '0407 *3790
HARTMAN ASSOC
0 O10/O17
Wastewater
Residential
City
County
Subtotal
Multi -Family
City
County
Subtotal
Commercial
City
County
Subtotal
TABLE X-2
OKEECHOBEE UTILITY AUTHO ITY
CUSTOMER AND BILLING STATI TICS
MARCH 1994 THROUGH FEBRUAR 1995
Combined Wastewater
City
County
Bulk
Total
Meters
634
376
1,010
53
7
60
273
78
351
960
461
1,421
Flow
634
33,645,000
376
8 478 000
1,010
42,123,000
422
10,967,000
104
43071000
526
15,274,000
.472
46,574,000
249
36169000
'721
821,743,000
1,528
1,186,000
729
8,954,000
329
0 000 000
2,585
1
0,140,000
Flow Per
W Per Mo
4,422
1,879
r
2,166
3,451
2,420
8,223
12,129
9,570
14,811
17,459
7,604
51484
9111
0
07/07/95 18:33 V407 • 3790 HARTMAN ASSOC • 16013/017
SECTION 2
INCOME AND EXPENSE STATEMENT
2.1 CITY OF OKEECHOBEE
The most recent Income and Expense Statement for the City
September 30, 1994, and included herein as Table 2-1. Provided as
Purpose Financial Statements and Accompanying Information
September 30, 1994, which should be read in their entirety. Also i
unaudited revenue and expense reports as of the period ending April
or representations as to the accuracy of Table 2-1 A are made.
for the period ended
endix D is the General
Fiscal Year ended
ded as Table 2-1A are
1995. No verifications
2-1
07/07/95 18:33 '0407 • 3790 HARTMAN ASSOC • I', Z 014/017
TABLE 2-1
CITY OF OKEECHOBEE, FLORIDA
COMBINED STATEMENT OF REVENUE, EXPEND
CHANGES IN RETAINED EARNINGS/FUND IRA
PROPRIETARY FUND AND SIMILAR, TRUST
Year Ended September 30, 1994
Proprietary F
Fund.El!
EnterRrise
Operating Revenues:
Charges for Services $2,784,101 $
Contributions - 1
Investment Income 2
Total Operating Revenues 2,784,101
Operating Expenses:
Personal Services
727,008
Professional Services
278,449
Materials and Operating Supplies
309,737
Utilities
168,162
Insurance
65,394
Repairs and Maintenance
242,030
Administrative Supplies and Expense
17,688
Bad Debts
3,012
Depreciation
544,778
Benefit Payments
-
Contribution Refunds
-
General Fund Administrative Charge
100.000
Total Operating Expenses 2.455.258
Operating Income 329,843
53,7
29,'
2U
AND
,-
S
Totals
(Memorandum
4a1X)
- $2,784.101
7 194,447
3 201-243
3-247,491
727,008
88 332,237
308,737
168,162
65,394
242,030
17,688
3,012
544,778
01 29,501
102 21,502
100,000
_2.560.042
68 _442
The Notes to Combined Financial Statements
are an Integral Part of this Statement
07/07/95 18:34 V407 • 9790 HARTMAN ASSOC • II (1015/017
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07/07/95 18:35 '04073790 HARTMAN ASSOC • 018/017
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HARTMAN & ASSOCI
TES INC.
A& engineers, hydrogeologists, surveyors & mo
agement consultants
201 EAST PINE STREET - SUITE 1000 - 0
LANDO, FL 32801
TELEPHONE (407) 839-3955 • PAX(
07) 839-3790
FAX (ADMIN.MTri.ITY ENWHYDRO.) - (07)
639-3790
FAX (CIVIL ENWSURVEY/MANCE) • (
07) 481-5447
�FACSIMILE TRANSMITTAL-
-4
TO:fl M'
C� C' • - DATE.
RE:
12
WE ARE SENDING YOU AGES, INCLUDING THIS
COVER SHEET.
THESE PACES ARE BEING TRANSMITTED AS INDICATED
BELOW.
❑ AS REQUESTED
QJ-1:10R YOUR USE
CzYPro'R YOUR COMMENTS
O FOR YOUR APPROVAL
HARD COPY:
O WILL BE SENT VIA REGULAR MA
L
O WILL BE SENT VIA OVERNIGHT
MAIL
C] WILL .BE SENT BY FACSIMILE ONLY
MESSAGE:
r
--�
IF THERE ARE QUESTIONS OR PROBLEMS WITH�HIS TRANSMITTAL.
PLEASE CALL (�407) 839-395
r"-Ow
07/07/95 19:07 -040*9 9790 HARTMAN ASSOC • 0002/013
SECTION 3
BALANCE SHEET
3.1 CITY OF OKEECHOBEE
The most recent Balance Sheet for the City listing assets and liabili
September 30, 1994, included as Table 3-1. Provided as Appendi
Financial Statements and accompanying information for fiscal year
which in the notes provide the amount of contributed capital. Also i
unaudited balance sheet as of April 30, 1995. No verifications
accuracy of Table MA are made.
:s is for the period ending
D is the General Purpose
lded September 30, 1994,
:luded as Table 3-IA is an
representations as to the
3-1
07%07/93 19:07 '04070 3790 HARTMAN ASSOC •
Q 003; 013
TABLE 3 - 1
CITY OF OXEECHOBEE, FLORIDA
COMBINED BALANCE SHEETS -
ALL FUND TYPES AND ACCOUNT GRO PS
AAAM
Cash
Investments
Receivables:
Taxes
Accounts less Allowance of $40.572
Due from Other Government Agencies
Due from Other Funds
Inventory
Restricted Assets -
Cash
Investments
Accrued interest
Fixed Assets
unamortlxed Bond Expenses
Amount Aveelable in Debt Service Fund
Amount to be Provided for Retirement
of General Long Term Debt
TOTAL. ASSETS
1 I�..ANIma;S
AcMnts Payable
Accrued Liabilities
Accrued Interest
Payable from Restricted Assets:
Accounts Parable
Customer Deposits
Accrued Interest on Bonds Payable
Matured Bonds and Interest Coupons
Due to tither Funds
Deferred Revenue
Long Term Debt
TOTAL LtMIL,ITIES
FUND EQUITY
onMbuted Capital
Investment In General Fixed Assets
Retained Earrings:
Reserved for Revenue Bond
Retirement
Unreserved
Fund Salanees:
Reserved for.
Employees' Retirement
Debt Service
Inventory
Encumbrances
Unreserved
TOTAL FUND EQUITY
September 30,1994
Proprietary
Governmental Fund Types
Fund Types
Debt
General service
Enterprise
$1,440.343 $4,355
$710.670
Fiduciary
43T,039
3,434,566
$9.626
115 - '
106,832
255.117 -
153,17a
- - -
-
111,470 3,365 -
10.332
- - -
2,193
- 1,260,784 -
- 1,703.519 -
-
- 6,174 -
- 18,717,925 -
_
432.442 '
;1,803,004 $116,940 1.x3.0l0.63a
�.��
34,342 - 81,914
46,231 - 38.372
306,040
373.043
251,998
- 2,012 -
114,828
21.460 -
14.496,688 '
$256.050 $_ 2� 012 s18.548,075-
6,752,536
732,034
1,O5T,993
113,928
10,332 - -
25,680 - -
1,500.142
1.545,IS4 113,920 7.542,563
TOTAL LIABILITIES AND FUND
EQUITY $1,803.004 ;116,840 523,090.1;3a
The Notes to Combined Financial
605
Account Groups
--Generalenera
Total
Fixed
Long -Tenn
(Memorandum
Assets
Debt
Only)
-
3,454,588
_
361,949
.
163ATS
-
-
114.8I8
-
-
10,332
-
-
1,262.9?7
-
-
1.703,5t9
6,774
2,002.963
-
20,TS0,888
-
432,492
-
115,940
119,940
-
1.658,065
1.008,063
$2,062,963 51,7�4.005 $32.348,165
7,061 - - 6144,117
120,731 204,334
306.040
373,063
251,999
2.012
- 114,82E
_ 21,48(
- 1,663,274 16,15l.l6i
17,85 S1,784,005 _ S1T.590.80:
;S.T52,53�
2,062,963 - 2,052,26:
732,03
1,057,99
1 _ 3,403.74
10,31
35,61
- 1,500.1�
4 2,062.253 - $14,749.
6 2,062,863 ;1,7� $3
07/07/95 19:08 04070 3790 HARTMAN ASSOC •III 0004/013
TABLE 3-1
CITY OF OKEECHOBEE, FLORIDA
COKBINIED BALANCE SHEETS -
ALL FUND TYPES AND ACCOUNT GRO
Cash
investments
Receivables:
Taxes
Accounts lass Allowance of $49,672
Due from other Government Agencies
Due from Other Funds
Inventory
Restricted Assets -
Cash
Investments
Accrued interest
Fixed Assets
Unemortized Rand Expenses
Amount Available in Debt Service Fund
Amount to be Provided for Retirement
of General Lens -Term Debt
TOTAL ASSETS
Accounts Payable
Accrued usblllUes
Accrued Interest
payable from Restricted Assets:
Accounts Payable
Customer Deposits
Aeerued Interest on Bonds Payable
Matured Bonds and Interest Coupons
Due to other Funds
Deferred Revenue
Long -Term Debt
TOTAL LIABILITIES
Conk tD t9UdTCspTtal
investment In General Fixed Assets
Rstolned Earnings:
Reserved for Revenue Bond
Retirement
Unreserved
Fund Balances:
Reserved for.
employs", Retirement
Debt Service
Inventory
Encumbrances
Unreserved
TOTAL FUND EQUITY
September 30,1994
Proprietary
Governmental Fund Types
Fund Types _
Debt
General Service
Enterprise
$1,440,843 $4,333
f710,e79
Fiduciary
AM T s
Recount Groups
i Fin-9 -raT GeneralTotal
Mixed long Tenn
(Memorandum
mp oyee
Pension
Trust
Assets Debt
- -
Only)
iZ,i9Z,916
$37.039
3.454,566
- -
3,454,565
89.626
115
- - 99,741
- 361,942
104,432
- 255.117
-
153,175
-
111,470 3,350
-
11, 1110
32
- - 10,332
10,332
-
2,193
- 1.260,784
- 1.262,977
- - 1,703,519
- 1.703,511
- - 6,774
8,774
- 16.117,925
2.062,963 - 20,780.888
-
- 432.482
- _
- - 432.462
- 115.940 111,940
$4,342 81,944
4CZ31 - 38.372
20,969 -
306,040
373,063
251.998
2,012
114,810 -
21,480 - -
14.4� .
t256.6so 32.012 �f151546.075-
5,752,535
732,034
1.061,993
7
1.668,065 1,664,05!
$2,062,963 s1,7� 84�.0055 $32,�
$144,11'
120,731 204,23
20,96
_ 306,01
_ 373,0E
ZS1.9t
3,483, 44
- 113,928 - -
10,332 - -
35,680 - - -
1,500,142
1.546,154 113,128 7,542,563 3,453. 44
1.463,214 16,159,9'
$1,794,005 f1,. 7.596,8
$6.T52,t
2,052,90 - 21062;
732,1
_ LOST.
3,493.
113,
_ 10
35
1.500
2.062,963 f 14,749
TOTAL LIABILITIES AND FUND
Equity
$1.503.004 f115,940 523,090.638
- -
The Notes to Combined Financial Statem
=2,0�6. f1,1 s� 1 I
07/07/95 19:08 '0407.9 3790 - HARTMAN ASSOC .III Q 005/013
TABLE 3-1A
OF^C F. �P;.gi
BALANCE !!'4:_E S HEwT
'ERIO,D ; 95
z S E T S
C iRREC4T
BARNETT S}_
STATE. BOARD OF DM_ O C1R MAIN
4Q9:72?.,S
CD BARNETT-•0 S9£9426-E:95
1OVIQ00R^O
' �=C► 8_t-tRt4ETT-,�uv':S_93ui _53 :;T. __
- --•• 10� t C�.zO.
- OEPOSIT FUND -•- BARNETT SK
27 )248. ? 6
STATE 50ARD OF ADM DEP FUND
3601000400
PUB UTIL DEBT SEi:�J.
STATE BOARD OF ACM DEBT SV
=�7:33w•s:�£�
FIR=T UNION 895_ DEBT S C
E1i, 154.06
1?72 BOND COUPON MARINE NAT.
..-__,_.:'-=5.5G--
F RST UNION S1735- .EF REV :'2'
3 _ i , -� 1 y . 05
- PUS L iTIL XMPROYE i5: REPLACE
ST SOARD OF ADM INPROV a REF
•.�, �1'?._?i
._..___._...1?
W . W . COLLEC-1 I Oi l-BIG LAKE-5.174k-
>r ixa 07
• WA TFLEATPLT C—B Z8 L A%*E-5958
y W4W. TREAT-PLTCON--B=G LK 5.?7
r3,979s8'»
WATER C�TG'j•--��;5�—��t'rit's' Ci i�.��.r! �iG
S, 5,4.2.0'0
PETTY CASH
ACC -RUED I T ERES" REC.
6 i 77:. s'
WATER ANCE
-; DELINQUENT PENALTIES
3=�L 44
FIRE PfiO Tivt3 wEfiVI�;.
i, 307aEQ
AIR C=EPY SERVICE9'1
t iF.6. 92
A/R DEBT SVC
i.x, i64• 3 _
ti: R Ih3F 8: fiEFLfa�=E!*TENT -•
i',93.ia
RETURNED CHECI .S
_. E T UNC OLL . Ar-i-TS A REC,
43.) 710. �% •-
DUE
TOTAL CURRENT ASSETS
PLONT FROPE.R +Y & EQUIF ,.
7, 3E6, 563 90
- PLNITt PROFFT;T`s' c: EQUIP
`
ALLOW. FOR DEPRE. EicUIP • —
•_-_ r4, 57w, h00.6S-
.:OTHER ASSETS
CONSTRUCTION IN PROGREMS WAT ;:i,FOO:v0
0-7/07/95 19:09 1&407 9 3790 -- HARTMAN ASSOC Q 006/013
TABLE 3-1A (Continued)
CITY OF of E r-14QdEC-PilCl I�: U T TI_I TES _._.
ESALAI-ICE
CONSTRUCTION IN rrROGRE 5 WWT 4$J,57a.5i
r'GNST IN PRGG-LIFT STATION ..... : F., 661 44•6
TOTAL OTHER ASSETS
L•Z ' B I L, I T I E S
CURRENT LIABILITIES
ACCOUNTS PAYASL
' i� C OUNT
ACCOUNT PAYABLE WASTE WATER
4 .
DUE TO GEN FUNID--OAR`" AOE-
,��OR�JEC� INT PAYABLE
ACCSUFXI WADES PAYABLE
_ ! 39.^•_�93-
AccR VEG PAYROLL DEGUiwT I ONS
i j�r - : Ida - 14EALTH
ASCRE: EMP INS 411-CID
=94
ACRV Emp INS - CANCr-fi _ .�
_ . _.._ ..._ 574: 5-
��;.FcC+ - R 71REHENTL DEDUCT
73. `_ 5
tis .lRE�VF+'_lSI+OI. FAY
F. SiOfSa•2. —
i,rtEDIT~VNIVl �.. ._...
+.4 42—
e~ iTER DEPO•, T ='• PEPUNDS
387jwr"63 • -
DEFERRED REVENUE _ _
_ _ i 3,
- T OT -mL CURRENT UIAEI!_iTZE�T
my BOND P AYAP L.E i-7y c:
'= J't95 , 000.00 -
TZ SONP i1Y5 _i7UN
9i 1186. 00
12 �i'or"Ll TSSUE
Aci,"UM A-14ORT Z Cl I SCOUNT7-
A CUM AMORT q� ISSUANCE
_ :--- : 794173
_ .. i NAMO+RTI?ED 50NO GISCNT-67
66: 450. i'=--
[,JNAMORTIZa- SOND iS-5-•.S7
42, 4.02.3rr--
i?67 REVENJE BOND
4159S J 60 4 0 -
- -- 87 BOND GISC:.OUNT
141, 100 a 00
BONE, .OISCOUNT & ISSURAN"M CO
s60, 6�CS, -fii
89 BOND ISSUANCE
iGSJ oi5 z no
_. .. a.? MOO D I C', Iti T
� O 1 rJ :•6 . � _�
{: cc. AmoRT $1 COST
3"7) 33.Ia 11-
ACCUMUi ATED AMORT
8 SS 4 72
is �:*r: .'L•.%y%� -
01/07/95 19:09 '0407dbD 3790 HARTMAN ASSOC it _(0907/013
TABLE 3-1A (Continued)
OF OKEECHOSEE-PUBLIC LITILI TES
BALANCE SHEET
r-I 0 n. .. ....... .
-'ss-
19S? REVENUE BIQWND 4p6%G=-j0Q0^00-
M" TO RE,L�Bw IU •PO -
TOTAL OTHER LIABILITIC-715 71:?4�j 23? AS-
T 0 T JZI L L T T I T i Se: Elaq
E
NET WORTH
518 FR M.L7 -OTHER FUNEM _t4-1-
CURRENT YR FUND C-OUITY
PRIOR YSAR FUND UNDISTRIS
TOTAI, MET WORTH
;NI ET WORTH
TOTAL L -a I_lr
IA _11;E.S _AND EGUITY
117 ) 6 1? 0'42-
21:7861:714.48-
07/07/95 19:10 V4073790 HARTMAN ASSOC •, Q008/013
SECTION 4
STATEMENT OF THE E)USTING RATE ASE
4.1 GENERAL
Generally, the rate base of a utility company represents the deprecia ed cost of the utility plant
and facilities financed by the owners and used to provide service to the public. Specifically, the
rate base of a utility includes gross plant in service less depreciation and net contributed capital
and/or plant, allowance for working capital, materials, supplies and iriventory, and certain other
financial considerations. In determining the existing rate base, net pl int which is in service, but
not used or useful, or plant which is held for future use, is generally subtracted from the total
plant in order to arrive at the level of rate base required to provide service to the existing
customer base. Since the City is exempt from rate regulation, it does of have an established rate
base approved by the appropriate regulatory entity. Moreover, tht OUA is also expected to
be exempt from rate regulation by a separate entity. The existin rate base of the City is
unavailable.
4-1
0
•
07/07/95 19:10 0407 839 3790 HARTMAN ASSOC
SECTION 5
PHYSICAL CONDITION OF THE FA
5.1 CITY OF OKEECHOBEE
The following, prepared by the City's Engineers, provides
wastewater facilities and their condition. Please refer to A
provided by the City Engineers.
5.1.1 Water
The water system consists of a 3.2 MGD coagulation
fa 009/013
as to the water and
A and B for the letters
filtration, disinfection
facility using Lake Okeechobee as the source of supply. Significant portions of this plant were
constructed in 1926 and have operational and physical limitations, The system also includes a
1.0 MGD groundwater treatment plant. The groundwater treatment p ant was placed into service
in 1994 and operates properly. The plant is served by a well field rated at 2.2 MGD and
containing seven wells. Only four of the wells are equipped at this time. The treatment process
is manganese greensand for iron and color reduction.
The distribution system contains piping sized from 2 inches to 4 inches in diameter. A
significant amount of distribution improvements have been completed during the past two years.
This work has addressed improvement to the backbone conveyances stem. There continue to be
many localized areas where distribution 'improvements are required. n addition, the replacement
of asbestos cement piping and 2-inch galvanized piping is necessary.
Based upon general field observittions and the age and intended use f the facilities, the existing
water production, transmission, distribution and storage facilities vary in their ability to meet
system needs. The newer facilities, with proper maintenance and care, will continue to function
in a reliable, dependable mode. The older facilities require a firth p ogram with a timetable for
replacement and/or upgrade.
A summary of the condition of the water facilities is shown in Table $-I.
07/07/93 19:11 V4070 3790 HARTMAN ASSOC • 0 010/013
5.1.2 W—astewaler
The wastewater system for the City consists of the following
Wastewater Collection System:
Forcemains
Gravity Mains
Lift Stations:
Wastewater Treatment Plant:
4" and less
611
8"
10"
12"
18"
6" and less
814
10"
12"
15"
16'
57
0.6 MOD Contact Stabilization Activated Sludge Pac
(Marolf) with filtration and chlorination for use as in
citrvs groves at the Williamson Cattle Company prol
facility receives treated effluent from the Eckerd Yot
Center, which is filtered and reclaimed along with the
the City facility and pumped to the Williamson site.
water system is gated at 03 MOD, Residuals handlix
on -site with land application of liquid sludge.
Service is provided to residents and conu nercial establishments in
County, as well as within the City limits.
25,400 LF
47,600 LF
8,000 LF
19,400 LF
13,200 LF
14,900 LF
10,700 LF
111,900 LF
15,000 LF
18,500 LF
7,000 LF
100 LF
kage Plant
igation for
arty. The
th Development
effluent from
The reclaimed
�g is provided
unincorporated areas of the
5-2
0'1/07/95 19:11 0407& 3790 HARTMAN ASSOC •
Overall, the system is adequately maintained and provides reliabl
growth in the system is anticipated and an expansion program has b
the needs of the City and the surrounding area in an economical and e
A summary of the condition of the wastewater facilities is shown in
1011/013
sewer service; however,
n started that will satisfy
manner.
5-2.
5-3
07/07/95 19:12 '04073790 HARTMAN ASSOC •II 0012/013
TABLE 5-1
CITY OF OKEECHOBEE
PHYSICAL CONDITION OF WATER F.
1. Wells
A. (1) Age: 1 year
(2) Condition: Excellent
2. Raw Water Transmission System -
A. (1) Age: 1 year
(2) Condition: Excellent
3. Raw Water Transmission System -
A. (1) Age: 1 to 25 years
(2) Condition: Oood
4. GWTP
A. (1) Age: 1 year
(2) Condition! Excellent
5. SWTP
A. (1) Age: Ito 69 years
(2) Condition: Fair to Poor
6. Transmission System
A. (1) Age: Ito 50 years
(2) Condition: Fair to A'
V TP
Source: Reese, Macon & Associates, Inc. (See Appendix A)
5-4
07/07/95 19:12 '040*9 3790 HARTMAN ASSOC •
Z013/019
TABLE 5-2
CITY OF OKEECHOBEE
PHYSICAL CONDITION OF WASTEWATER
1. Wastewater Collection System
A. Sewer Mains
(1)
Age: Ito 36 years
(2)
Condition: Below A
B. Lift Stations
(1)
Age: Ito 30 years
(2)
Condition: Average
2. Wastewater Treatment Plant
A. (1) Age; 10 years
(2) Condition: Average
3. Effluent Disposal Facilities
A. On -Site System - 0.3 MOD
(1) Age: 10 years
(2) Condition: Poor
B. Off -Site System - 0.4 MGD
(1) Age: 4 years
(2) Condition: Excellent
Source: Knepper & Willard, Inc. (See
to Good
5-5
I y.
07/07/95 19:15
'040709 3790 HARTMAN ASSOC • II!
la001/o14
TO:
C►0 . Ua
RE:
HARTMAN & ASSOCf TES,
INC.
engineers, hydrogeologists, surveyors dt mo ogement consultants
201 EAST PINE STRUT - BUITE 100o - 09 AN00. FL 92901
TaVNONE (407) $39-3955 - FAX (1 07) 532.3790
FAX FAX CIVL EN ROE AnJUTY ��4NCE) - (07) 4e1-8447
FACSIMILE TRANSMITTAL
F,Rvx:
DATE:
v - --
WE ARE SENDING YOU AGES, INCLUDING THIS COVER SHEET'.
THESE PAGES ARE BEING TRANSMITTED AS INDICATE BELOW:
O AS REQUESTED
m.OR YOUR USE
3-IpR YOUR COMMENTS
0 FOR YOUR APPROVAL
HARD COPY:
MESSAGE:
O WILL BE SENT VIA REGULAR MIL
D WILL BE SENT VIA OVERNIGHT All
Q WILL BE SENT BY FACSIMILE O LY
,f.
i
IF THERE ARE QUESTIONS OR PROBLEMS
S WITH
THIS TRANSMITTAL,
PLEASE' CALL ( )
` 07,A07/95 19:16 V40709 3790 HARTMAN ASSOC
0 002/014
SECTION 6
REASONABLENESS OF PURCHASE PRICE AND TERMS
Presently, the OUA, the City, the County and OBWA are negotiatillig in good faith regarding the
terms of the transfer agreement. The transfer agreement consists of the following transfer of
assets in an "as is" and "where is" condition:
I - Real property and the property interests, subject to permitted exceptions.
2. The utility systems.
3. All accounts receivable.
4. All interest of the City and County in certificates, imXnunities, privileges, permits,
licenses, license rights, consents, grants, ordinances, interconnect agreements, and
interlocal agreements.
5. Items of tangible personal property.
6. All past and current customer records, billings, print, plans, engineering reports,
studies, etc.
7. All connection cbarges and net guaranteed revenues.
8. All developer agreements.
9. All unexpended accumulated funds and financial assets of the City, County, and
013WA utilities relating to utility systems, except as specifically noted in the
transfer agreement.
10. All third -patty warranties.
11. All legal rights accruing to the City, County, arid OBWA relating to the
ownership of the utility system,
12. All current City utility and OBWA employees shall be offered employment for a
minimum of one year.
6-1
-07/07/95 19:16 '04070 3790 HARTMAN ASSOC � IZ003/014
It is anticipated that the transfer agreement will be executed following the Chapter 84-84
hearings. The terms and conditions of the final draft of the transfer agreement (without exhibits)
are presented in the Appendix E.
The transfer agreement provides that upon transfer of all utility asse
receive compensation for excess net equity of $3,000,000; the Cow
amount of transferred equity, would contribute capital of $3,000,00
ferring its assets, would be on a parity with both the City and County.
The typical terms and conditions involved in a transaction include:
• Purchase Price, Stock or Warrants - Transferred Assets, Cash,
• Bill of Sale - Provided
• Satisfaction of Liens, Encumbrances or Title Problems to O
Provided
• Easement, Land Rights, or Other Utility Rights Transferred -
• Escrow as Appropriate to the Transaction - Renewal and Rep]
• Disclosure and Adjustments for Prepaid or Discounted Uncon
• Disclosure and Representations of Regulatory Conduct and C
• Transfer of Necessary Agreements - See Appendix E
• Transfer of Customer Deposits - Yes
• Latent Defect Escrow Consideration - No
• Transfers of all Records, Drawings, Report, Permits and Like
• Disposition of Accounts Receivable - Transferred
• Disposition of Vendor Invoices, Materials, Supplies - Vendoi
all Materials and Supplies Transferred
• Required Inventory of Consumables at Closing - Normal Bus
• Prorated Taxes and/or Franchise Fees - Not Applicable or Wa
• Prior Inspection of all Closing Documents and Scheduling of
• Consideration for Performance and Penalty or Resolution of 1
• Verification of Proper Authorization to Bind a Party - Repres
• Insurance and Indemnification Issues - Yes
• Conduct After Agreement and Before Closing - Provided
• Consideration and Adjustments for the Transfer of Account
Funds, Debt Instruments, Etc. - Yes - All Transferred
• Audit Procedures and True-up/Retainage Releases - Yes
is to OUA, the City would
ity, having only a minimal
); and OBWA, upon trans -
Purchase Price
in Free and Clear Title -
it Account Provided
Customers - Done
ice - Done
Documents - Yes
Costs Paid through Closing
riess Conduct
ved
?re -closing - Yes
[on -performance - No
nted
i, Capital Funds, Restricted
6-2
07/47/95 19:17 0407a 3790 HARTMAN ASSOC
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•
Warrantees or "As -is" Type of Transaction - As -is Transaction
•
Operational Staff and Other Employee Consideration - One
Year All Employees
•
Rolling Stock, Movable Equipment, Laboratory Equipment,
Tools and Accessories or
Appurtenances - All Transferred
•
Closing Date, Time, Place and Procedures - Appendix E
•
Disclosure and/or Dispensation of Litigation - Provided
•
Assistance in petitions of Transfer, No Objections, Contractual
Extent and Type of
Cooperation - Provided
•
Payments of Representative Fees and Costs - Each Pay Their
Own
•
Payment of Documentary Stamps, Recording Costs, Taxts
and Commissions - OUA
Pays
•
Payment of Title Search and Policy - OUA Pays
•
Procedure for Construction Work in Process - Prefunded by
ntity to Conclusion As -is
•
Other Cash Asset or Value Considerations - Provided
•
Transitional Billing, Management and Technical Servic
for Work , in Progress -
Provided
•
Other issues Specific to the Transaction - See Appendix E
From
the above typical terms and conditions, those items for
which we have additional
discussion include:
1.
Purchase Price - Depreciated original cost plus other cash
and assets less liabilities
assumed less a total net contribution of approximately $9,00
,000 in cash and other assets
was the purchase price. The OUA's purchase price results in
a net original cost balance of
approximately $9,000,000. This amount represents a sign
ficant capitalization by the
three transferring entities and the SFWMD.
F�
3.
Latent Defect Escrow - The transaction is on an "AS -IS" bas s and a latent defect escrow
is a t provided by the three transferring entities to the OUA.
Performance Penalty - This is a voluntary transaction by
public entity is paying its own costs.
There are ag performance penalties protecting the OUA in
standard recourse actions provided by general law.
transferring entities. Each
agreement other than those
6-3
07/07/95 19:17 *04079790 HARTMAN ASSOC � QJ005/014
4. Insurance and Indemnification - The OUA must secure its own insurance. The City is
being indemnified by OUA, except for known liabilities not disclosed.
5. Audit Procedures and True-up/Retainage releases - Accolinting of funds and balances
shall be made as per description in letter dated June 30, 1995, and included as
Appendix F.
Generally, given the context of the transaction and the good faith i
transfer agreement is recommended.
the agreed -upon
6-4
p7/1)7/95 19:18 0407 & 3790 HARTMAN ASSOC � 16006/014
SECTION 7
IMPACTS OF TRANSFER
7.1 GENERAL COMMENTS
Positive impacts on the City's customers resulting from the tr sfer of the City's water and
wastewater assets to the OUA can be summarized as follows:
1. The purchase will create a unified water and wastewater system derived by
combining the utility resources of the City, the County and OBWA which will
serve the needs of the land owners, residents wd customers located on the
southern portion of Okeechobee County plus part of northern Glades County.
Growth management and master planning efforts address and correct system
deficiencies in an effective and economical manner. As a result, the water and
wastewater services provided to the customers can be significantly improved.
2. Decisions concerning the water and wastewater fac'lities will be made by local
representatives of all customers who will be more a are and sensitive to the needs
of all customers.
3. The operation of the OUA water and wastewater system and the subsequent
expansion of operations will be under the control of the OUA, and not subject to
conflicting economic or political interests, thereby providing additional reliable
capacity.
4. The OUA will be able to better control and
impacts and provide surface, groundwater and
which will promote the public health, safety and 1
5. Economically, all customers will benefit from the
6. The OUA has the ability to obtain financial assist
County or OBWA. One such funding source is the
t negative environmental
environmental protection
of scale.
not available to the City,
7-1
07/.07/95 19:18 $4073790 HARTMAN ASSOC
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7• The ability to provide better water and wastewate I r service should attract more
commercial development, which will enhance and diversify the tax base of the
City and County.
8. All present utility employees will work for the
9. Elimination of the present litigation between the
10. Initial establishment of equalized rates.
11. Establishment of a uniform extension policy.
12. Provide additional revenue to the City and reduce
burden.
13. The OUA, as the owner of the system, would assume responsibility for operation,
maintenance and customer services which typici Ily involves problems and
complaints. The OUA would also assume the liab lities involved in ownership
and responsibility for rates and charges.
The negative impacts associated with the proposed transfer are as
1. The City no longer has sole management authority or
2. Future regulatory requirements and more stringent
in unforeseen costly future capital improvements.
3. Undisclosed latent defects could result in unforeseen
costs.
4. Transitional costs of the OUA and start-up costs.
7.2 CUSTOMER RATE IMPACTS
The customer rates for the City, County and OB WA, as well as the
compared and discussed in Appendix G. Generally, custoc
consumption of 3,000 gallons or less will realize a water rate savin,
realization.
can ultimately result
capital or operational
.d rates for the OUA, are
with a monthly water
7-2
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0407 839 3790 HARTMAN ASSOC
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As water consumption increases, those present City customers wi
average County water customer will realize a water rate savings.
OBWA customers may realize a savings or have a slight increase. ,
have a rate increase. The billing components for the water and v
into a base and consumptive rate as shown on the revised OUA ra
May 9, 1995 preliminary report. The recreational vehicle equival
ERC versus 0.55 ERC in the May 9, 1995 report. See Appendix G
7.3 CONTRIBUTIONS AND GRANTS
The OUA customer will benefit from the $3,000,000 County contr
of the OBWA and the contribution by the City, as well as the previ
The pending grant from the SFWMD, pending grant/loan from the
loan from the FDEP State Revolving Loan fund, and the possible B
may all benefit the OUA customer.
7.4 EXISTING CUSTOMER ALLOCABLE COST OF CAPIT
1 pay an increased rate. The
Depending upon usage, the
►11 wastewater customers will
astewater rates were blended
e schedule subsequent to the
:ncy rate is proposed at 0.33
br this information.
'iOn, the total contribution
grants from the SFWMD.
HA, pending low interest
a grant from the SFWMD
IMPROVEMENTS
The OUA will have more customers and a lower total water and wastewater five-year capital
improvement requirement than the City. Moreover, the OUA wi 1 have the contributions of
$3,000,000 from the County, the SFWMD grants, the OBWA cash and assets to further reduce
the existing customer allocable cost of capital improvements. Corn aratively, the per customer
burden of future capital improvements is less with the OUA.
07/07/95 19:19 V407 839 9790 HARTMAN ASSOC Q009/014
SECTION 8
ADDITIONAL INVESTMENT
8.1 GENERAL
This section addresses the additional investment required by the
1. Present or committed demands of the system;
2. Regulatory requirements; and/or
3. Correct system deficiencies.
In addition, in Subsection 8.3, an attempt is made to identify pxoj
OUA. Finally, other identified improvement projects are listed w
become available, yet are not required at this time. The FY 1996
master plan which will address fitture growth and proper facilities 1
8.2 REQUIRED IMPROVEMENT
A. System Demands
to meet;
worthy of funding by the
may be funded if sources
get includes an integrated
The April, 1995 "Suggested Water and Wastewater Prelimbiary Capital Improvements
Program" illustrated and confirmed that additional waste ter treatment and reuse
capacity is needed. The present facility has a capacity of 500,000 gpd. A proposed
wastewater treatment and reuse expansion of 700,000 gpd would provide 1,300,000 gpd
in total capacity. A phased expansion project has been discussed by the firm of Knepper
& Willard, Inc., as shown on the attached figure. In addition to the plant improvements,
consideration of the provision for two (2) new unlined porlds to increase the storage
capacity from approximately 20 MG to 90 MG, one new a ricultural filter and pump,
approximately three miles of reuse main, $100,000 of equip ent, and new traveling gun
07/07/95 19:20 0407.9 3790
NARTMAN ASSOC
10010/014
spray facilities and improvements in the sprayf eld would be accomplished. The plant
improvements were conceptually estimated at approximately $1.4 million. The reuse
system improvements were conceptually estimated at $0.8 million. The 1.3 MGD of
reuse is planned to be accomplished through reuse of the Williamson property, on -site
pond reuse and on -site irrigational reuse. Note that this project would involve an
amendment to the present Williamson contract to take an increased amount from the
Present 400,000 gpd to 900,000 gpd. The planning level Project cost estimate is $2.25
million. This project is anticipated to be funded from revenue bond proceeds or a portion
of the County's contribution.
B. Regulatory Requirements
There are no regulatory requirements in addition to the FY
programmed by the City. Over $1.6 million of committed
funded at the beginning of FY 1995 (October 1, 1994). One
relocation along S.R. 70 involving a budget of approximately
C. Required Corrections of System Deficiencies
There are no critical system deficiencies which would
safety and welfare.
8.3 RENEWAL, REPLACEMENT AND IMPROVEMENT
In addition to the projects described above, many renewal, r
projects have been identified. These projects are anticipated to be
following amounts for each of the next five fiscal years:
• Water Plants
Water Transmission
• Wastewater System
Water and Wastewater
$ 70,000/Year
200,000/Year
1 15,000 Year
$385,000/Year
1995 capital improvements
'ork and new projects were
Project was the water main
i 120,000.
impact the public health,
(FY 1996 - 2000)
tent and improvement
by rate revenues in the
$ 350,000 Total
11000,000 Total
57--5.00Q Total
$1,925,000 Total
8-2
07/017/95 19:20 V40709 3790
HARTMAN ASSOC � Q011/014
8.4 FY 1996 POTENTIAL SFWMD GRANT
Presently, it is reported that the OUA/SFWMD Cooperative Agret
District's top ranking. In September of 1995 the SFWMD Board
items included in the request are:
• Legal Costs
• Operations Costs
• Transitional and Start-up Costs
• Environmental Audit
• Rate Study
• Utility Master Plan and Analysis
• Preliminary Design Lake Okeechobee Package Plant Tie -ions
Total
Historically, the SFWMD has funded the OUA under Cot
Moreover, the SFWMD has provided, and will continue to provi
trative and surveying services to the OUA.
8.5 OTHER CAPITAL PROJECTS FOR FY 1996 - 1998
it request has received the
vote on this grant. Those
$ 60,000
40,000
100,000
30,000
20,000
190,000
$550,000
rative Agreement C-6134.
in -kind technical, adminis-
Based upon the preliminary analysis of the transfer agreement and the projected approximately
$20,080,000 Series 1995 OUA Revenue Bond Issue, the following remaining capital improve-
ment funding may be available:
1. Approximately $1,750,000 in bond proceeds following
expansion from 0.6 to 1.3 MGD.
2. Cash available from the OBWA system following transfer.
3. Cash available from the remainder of the City's
reserves.
funding of the WWTp
and connection fee fund
8-3
07/07/95
19:21 040V9 3790 HARTMAN ASSOC
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4
5.
Connection fee or other capital related charges paid by
Grant or low-cost interest loan funding subordinate to
funding.
The total identified projects for this period include:
• Water Groups 2, 3, 4 Not Previously Funded
• Water Group 1 + Bet -Fier Acres Feed
• Wastewater Transmission Not Previously Funded
• Scada/Instrumentation
Subtotal
• Water Mains Not Previously Funded
Lake Ok echo P rL-aow Plant T;e :.,
• Pump Stations and Transmission
• Other Improvements
• Wastewater Treatment Plant and Reuse
Subtotal
It is believed that the City/County and OBWA projects as listed a
from the remaining capital sources anticipated as items # 1 thro
Okeechobee Package Plant Tie-ins may have $110,000 funded as the
FY 1996. Grant and loan applications have and will be submitted to
and others to fund the construction activity. If funding is not ma
Okeechobee Package Plant Tie-in project may be delayed,
customers in the period.
Series 1995 bonds or other
$ 605,000
479,000
500,000
200 040
$1,784,000
$280,000
$2,500,000
500,000
1.250 000
$4,250,000
)ove could be fully funded
igh #4 above. The Lake
preliminary design in early
It FDEP, FmHA, SFWMD
le available, then the Lake
8-4
07/07/95 19:21 04070 3790
HARTMAN ASSOC Z 013/014
8.6 FUTURE CAPITAL INVESTMENTS
For FY 1999 and beyond there are anticipated to be soften g WTP improvements and
expansions, wellfield expansions, wastewater treatment and reuse expansions, and other utility
Projects conducted to meet anticipated customer growth, improve potable water quality, and
provide central sewerage service to the community. Depending upon the financial plan at the
time, another revenue bond issue may be programmed to fund the system
enhancement. Y growth and
8-5
@ 014/014
07/07/95 19:22 '0407 839 3790 HARTMAN ASSOC
0
I
li•�=- �Haa��i
�.
isms I
Is
07/07/95 19:26 V40*9 3790 HARTMAN ASSOC . Q 001/012
HARTMAN & ASSOCl TES, INC.
engineers, hydrogeologists, surveyors & ma ogement consultants
101 KAST PINE STREET - suITE 1000 • OR ANDo, FL sZ9o1
TELEPHONE (407) $39.3955 - FAX (4 7) 639.3790
FAX (ADMIKAIT)L1TY ENO./NYDROJ - (7) $39.3790
FAX (Oft EN(1.1SURYEY/MANCE) - (07) 481-e447
'ACSIMI'LE TRANSMI
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DATE:
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07/07/95 19:27 V4049 9790 HARTMAN ASSOC • Z 002/012
SECTION 9
ALTERNATIVES TO TIM
9.1 GENERAL COMMENTS
No in-depth analysis of alternatives to this transfer has been made. Conceptual and generalized
comments are shown below:
A. City of Okeechobee
There are several alternatives to the purchase of the City's water and wastewater facilities. These
include:
1. No sale.
2. Sale to an investor.
3. Sale to a not -for -profit entity.
If the OUA does not acquire the City's water and wastewater system, the City can either continue
to operate the facilities, or it could possibly sell to another party.
The "no sale" option would result in the following:
1. Limited services.
2. Continuation of existing management and operations p#actices.
3. Limited control over proper growth management and s stem development.
4. Limited control over environmental concerns and issues.
9-1
07/07/95 19:27 '0407 $39 3790 HARTMAN ASSOC Q 003/012
5. Continued service area disputes.
6. Non -economies of scale.
Many of the same items listed in the "no sale" option would be
investor" alternative. No outside investor has offered to buy the
If the City's water and wastewater facilities were sold to a not
disadvantages associated with above two options would accrue.
from a not -for -profit entity to buy the system.
9.2 RATE IMPACTS OF TRANSFER VERSUS NO
Since no rate studies have been available for the City/County and
FY 1996, the only comparison is to existing rates as shown in Appe
for the "sale to an
system.
it entity, many of the
has not been an offer
OBWA prospectively for
The rates of the OUA include funding for the capital improvements shown of (1) approximately
$4,000,000; (2) renewals and replacements in excess of $1,500,000 in five years; (3) use of
potential grant proceeds for additional projects to expand the system and enhance the
environmental conditions around Lake Okeechobee via the tying of the package wastewater
plants to the central OUA system; and (4) the use of other contributed cash for capital
improvements.
The proposed OUA rates and charges also consider an annual justment for inflation as
determined by the Florida Public Service Commission (FPSC) which or this year was 1.95%.
The existing rates for the City may not be sufficient to fund the
City's system.
No rate studies of other alternatives were made.
jected capital needs of the
07/07/95
19:28 '04073790 HARTHAN ASSOC •
SECTION 10
STATEMENT OF QUALITY SERVIC
Q 004/012
In order to provide and maintain high quality and cost effective util ty services, the OUA will
institute several utility management objectives. The OUA, throughout the transfer process, has
engaged the professional services of legal counsel and a recognized consulting engineering firm
to assist in the process. The OU.A, is continuing the employment to a current City and OB WA
operational and customer service staff operating the City and OBWA water and City wastewater
facilities, as well as providing customer service functions, in order to have a smooth transition at
the time of transfer. Moreover, the OUA has recognized the need to perform capital
improvements to the system in order to maintain service levels and has also has recognized the
need to fund such improvements from the issuance of utility revenue bonds and rates.
Since (1) the same staff and management and facilities will be use,
are programmed, and (3) as a result of reasons described herein, it is
have the ability to provide and maintain high quality and cost-efI'ectiv
10-1
, (2) capital improvements
)elieved that the OUA will
utility service.
07/07/95 19:28 V407W 9790 HARTMAN ASSOC • Q 005/012
SECTION 11
STATEMENT OF PUBLIC INTEREST
Based upon the foregoing, it is the recommendation to the City d
water and wastewater assets is in the public interest. The OUA has
transferred staff of each utility, and the financial ability to pro
customers of the transferred systems.
the transfer of the City's
s experience, utilizing the
e quality service to the
07/07/95 19:29 04070 3790 HARTMAN ASSOC • la006/012
APPENDIX A
REESE, MACON & ASSOCIATES, INC. TRANSMITTAL
07/07/95 19:29 0407& 3790 HARTMAN ASSOC • Q 007/012
APPENDIX B
KNEPPER & WILLARDo INC.
07/07/95 19:29 $4070 3790 HARTMAN ASSOC • I, R 008/012
APPENDIX C
BEACH WATER ASSOCIATION LETTER
NOTE: Audited Financial Statement for 1994 and
Financial Statement for period ending April 30, 995,
are contained in other Appendices within this
07/07/95 19:30 '04073790 HARTMAN ASSOC � [Moog/012
APPENDIX D
GENERAL PURPOSE FINANCIAL STA
ACCOMPANYING INFORMATION
AND
CITY OF OXEECHOBEE, SEPTEMBER 30,11994
07/07/95 19:30 *04071& 3790 HARTMAN ASSOC • la 010/012
APPENDIX E
MASTER TRANSFER AGREEMENT AND RELATED MATERIALS
07/07/95 19:30 0407 & 3790 HARTMAN ASSOC ` C6 011/012
APPENDIX F
HARTMAN & ASSOCIATES, INC.
07/07/95 19: 31 0407 3790 HARTMAN ASSOC
[a012/012
APPENDIX G
OKEECHOBEE UTILITY AUTHORITY
USER RATES AND CHARGES
DATED MAX 991995
AND
REVISIONS
U-117"