Backup Documents 02/23/2021 Item #11D Commission Update NESA and GGC Feb 26 2021
CCWSD utility phased implementation strategy
golden gate city
northeast regional utilities
Funding Needs
Public Utilities Department
Update February 23, 2021
Good morning Commissioners, for the record…Joe Bellone, Director Utilities Finance
Thank you for the opportunity to discuss the utility’s continued expansion plans
Just a few reminders before we get going, the Special Act of FL Legislature Section 1 determined that:
extensive growth poses public health and water supply concerns
There is a need to eliminate proliferation of package treatment plants
The BCC has the responsibility to provide water and sewer services
First, we’ll look at plans for the former FGUA Golden Gate Utility Service area
Following that, I’ll provide an update on what’s in progress in the northeast service area, including construction on the northeast regional utility site, and what’s next
Page 234
1
GOlden Gate city
Public Utilities Department
Update January 2021
Let’s begin with plans for expanded service in the Golden Gate utility service area
Page 235
2
Guiding principles
At acquisition of the Golden Gate Utility System:
Public Health – move residents from drinking wells adjacent to septic systems to public water supply
Public Safety – provide fire protection throughout the city through installation of fire hydrants
Environmental - move residents along waterways with septic systems to public sewer system
Transmission Mains are the initial steps to build the backbone to provide sufficient water to achieve the first two objectives
Expansion of the wastewater treatment plant by 4 MGD will provide sufficient capacity to meet future demand from area growth (golf course development, Activity Center 9 and within Golden
Gate City service expansion)
3
As you can see, the CCWSD is proceeding in accordance with the guiding principles established for the acquisition of this utility:
The two potable water transmission mains will provide sufficient capacity to deliver drinking water which enables the utility to expand the distribution system to currently unserved
areas in GGC…initially fire hydrants can be placed strategically along this main (packet page 248)
The existing wastewater treatment plant is at 86% capacity.
Current and planned construction in the adjacent area, including any housing and/or Veteran’s services on the Golf Course as well as
in activity center 9 including the Sports Complex, the Sheriff’s evidence facility at the GOBP (and any other agency operations), Uline, Great Wolf Park, etc.
Page 236
3
Next Steps FY2021 - FY2022
Potable Water
Complete design of potable transmission mains by summer 2021
Proposals for transmission main construction (fall 2021)
Contract award late 2021, with construction starting 2022
Total estimated cost $18 million
Wastewater Treatment
GG Central WRF expansion to add 4 mgd of capacity (design 60% complete)
Will serve golf course development/Activity Center 9 and eventual service expansion within Golden Gate City
FDEP requires High Level Disinfection treatment at this site (BCC approved TetraTech EOR 4-28-20 item 16C13)
Total estimated cost $70 million ($65 million EOR estimate + CEI)
Total Golden Gate estimated cost $88 million
4
As of today, our engineers are working to complete design work for the potable water transmission mains and capacity expansion to add 4 MGD of wastewater treatment capable of producing
irrigation quality water for irrigation
To move forward to actual construction, funding of approximately $88 million will be necessary, there is a more information about that later in the presentation
Page 237
4
Northeast expansion
Public Utilities Department
Update January 2021
Now, we’ll discuss expansion of our next regional utility facilities to augment capacity of our existing interconnected water and wastewater treatment facilities
Page 238
5
Approved customer
base includes Hyde Park
Village and Rivergrass
Village
Finalizing Interlocal
Agreements/DCA with
IRRV, Longwater and
Belmar Villages for BCC
review/approval in 2021
Awaiting Letter from Hogan Island Village for request for utility services
6
Note that the CCWSD purchased the northeast utility site (216.19 acres) in June of 2003, anticipating the need for regional expansion
The Board approved expansion of the Water-Sewer District’s service boundary at an advertised public hearing on September 18, 2018, with the understanding that growth was coming and
additional capacity was necessary
Expansion of the service area was predicated on the provision of the Special Act which grants power to the Board to provide water and sewer services to prevent the proliferation of package
treatment plants throughout the county
Thus far, Hyde Park and Rivergrass have been approved, and the CCWSD has been requested to provide water and wastewater services to Longwater, Bellmar and the Immokalee Road Rural Village,
all located in the northeast regional service area
We anticipate providing service to Hogan Island Village as well, though a formal request has not yet been received
Since utility infrastructure must be built in advance of the actual demand, all developers and land owners have been or will be providing impact fee payments in advance to mitigate some
of the utility’s risk
Page 239
6
Status of Work To Date
Segment 1: 36” water main on 39th Ave NE is 100% complete
Segment 2: Pipelines under BCIRP are 100% complete
Segment 3: Transmission pipelines are 100% complete
Segment 4: Pipelines along 41st Avenue are 80% complete, roadway paving completed and inspected December 2020
Segment 5a: Pipelines to IRRV not started
Segment 5b: Pipelines to Hogan Island Village not started (1)
Utility Plant Site: interim wastewater treatment plant, two storage tanks and water pump stations substantial completion in September 2021
Total cost $76 million funded by the Series 2019 Bond
(1) Potential to serve HIV through IRVV under review
7
As you can see on this page, work is progressing.
This initial utility infrastructure identified here was bonded in 2019, at which time both Fitch and Moody’s rating agencies rewarded the CCWSD with a AAA rating, citing a strong financial
profile, a healthy debt profile, and continuation of residential and commercial development at its current vigorous pace.
If you haven’t been to the northeast utility site lately, situated adjacent to the Big Corkscrew Island Regional Park, I urge you to do so, it’s pretty impressive.
Page 240
7
Next Steps FY2021 - FY2022
Construct wells/raw water mains in developer easements (Orange Blossom Ranch/IRRV)
Construct two Class 1 Deep Injection Wells and Monitoring Well on NE utility site (10/21 – 7/22)
Design updates to 4 mgd Northeast Water Reclamation Facility
Construct Water and WW transmission mains to Oil Well Road (through BCIRP Phase 2 before Fall 2021)
Design and construct water and wastewater transmission mains and water storage tank to interconnect Bellmar with Rivergrass/Longwater (function of market demand)
Total Northeast estimated cost $48.1 million
Note that installing a landscape buffer around the utility site early on will enhance residents experience when large scale construction takes place
8
In preparation for future operation of regional utility plants on the northeast site, several elements of the infrastructure must be constructed in advance to operate such production
and treatment plants:
Raw water wells provide the “raw materials” to the potable water treatment process
Deep injection wells provide for disposal of concentrate from the RO treatment process as well as one disposal method for effluent that does not meet irrigation quality water standards
Transmission mains that will be buried under Phase 2 of the BCIRP must be constructed prior to the start of park construction
Total estimated funding need of $48 million (detail on packet page 243)
Page 241
8
funding needs
Public Utilities Department
Update January 2021
Now, we’ll talk dollars and cents, but mostly dollars
Page 242
9
Estimated Funding Needs
10
The largest and more significant funding need today if for potable water transmission mains and wastewater treatment capacity expansion in Golden Gate City: $88M
Construction of the underlying necessary utility infrastructure associated with the northeast utility: $48 million
Future Funding Needs identified in this chart and its timing will be determined by market demands
Page 243
10
Plan of Finance
Preliminary discussion with OMB/PFM/Bond Counsel 12/15/20
Update BCC on utility plans 2/23/21
Funding needs FY21 – FY22 total $136 million (impact fee eligible)
Schedule
2/23/21: Board endorses FY21-FY22 plan
Feb 2021: Finance Committee Meeting to discuss financing options
March – May 2021: Conduct Bond Feasibility Report (Raftelis/AECOM)
June 2021: Accept Bids (Pricing/Award Bid)
July 2021: Closing
11
So, how best to structure the debt to fund these requirements:
Mr. Isackson will convene a Finance Committee Meeting (members include OMB staff, the Clerk of Courts and her Finance Director, Mr. Klatzkow, GMD Finance Director and myself)
Also attending will be Bond Council from Nabors Giblin as well as the County’s Financial Advisors (PFM)
PFM will develop a preliminary plan of finance
I will request a Bond Feasibility Report (both financial and engineering components) with Raftelis
Go to the market, accept bids with an anticipated closing sometime this summer (goal is approval at the July Board meeting)
Page 244
11
OTHER FINANCIAL CONSIDERATIONS
Interlocal Agreements/Developer Contribution Agreements require advance water and sewer impact fee payments to share the risk of expansion construction in the northeast with rate payers:
Hyde Park paid $1,674,000 in August 2020
Rivergrass advance impact fee payment of $1,674,000 due upon resolution of legal challenge
Longwater - $2,343,600 due 30 days after SRA approval
Belmar - $4,352,400 due 30 days after SRA approval
Advanced impact fee credits can only be used at 50% for each building permit, thus ensuring a continued revenue stream
Ordinance 2019-48 (Impact Fee) increased cmbined water and wastewater fees by 27.2% effective March30, 2020 to fund expansion (next impact fee update due 2022)
12
For informational purposes, I’ve included on this slide highlights of advance impact fee payments either already paid, approved, or in process to mitigate the utility's risk of building
infrastructure in advance of demand
To ensure a continued revenue stream, developers will only be allowed to use 50% of the impact fee paid in advance against impact fees due at time of CO
Recall that you approved water and sewer impact fee rate increases of just over 27% effective in March 2020 in anticipation of these expansion needs during the 10-year impact fee rate
study 2019 to 2029 which included all treatment and production facilities.
Impact Fee Rate Studies are done at least once every three years, or sooner of business conditions change significantly before that
Page 245
12
recommendations
Approve the Utility Plans for Golden Gate City wastewater plant expansion and construction of potable water transmission mains
Endorse the Utility Plans for NE expansion
Direct the County Manager, or his designees, to explore financing plans and begin a Bond Feasibility Report
Explore financing plans with Finance Committee, PFM and Bond Counsel
Develop a Bond Feasibility Report with Raftelis and AECOM
13
Commissioners, we’re asking you today to endorse these plans, and direct staff to explore a plan of finance and bring a bond approval to you later this fiscal year.
One last critical piece of good news: Fitch recently completed its surveillance of the CCWSD in early February, included in that report is the anticipated approval of this $136 million
loan.
The Result: On February 11, 2021 Fitch released its report, reaffirmed its AAA rating, Stable Outlook, for the CCWSD, citing:
Robust liquidity position,
Disciplined rate setting, AND
Growth expected to support a sustained low leverage liquidity position
And with that, I can answer any questions you might have.
Page 246
13
appendix
14
14
Golden Gate Potable Water Transmission Mains
15
The large potable water transmission mains to be completed in phases
15
Golden Gate WAsteWater Treatment plant
Golden Gate City WWTP
16
Note there is plenty of room for expansion on the current treatment site
16
Deep injection wells
17
Timeline calls for construction to begin by the end of this calendar year
17
Landscape buffer
Type A looking South toward site
Type B looking north toward utility site
18
The rendering of the landscape buffer is NOT a part of this funding request, but just to point out for you that the earlier the plantings are completed, the longer they have to grow
before the final regional production and treatment facilities are constructed and put into operation.
18