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BCC Minutes 08/14/1979 S Naples, Florida, August 14, 1979 lET IT BE REMEMBERED, that the Board of Coun~ Commissioners in and for the County of Collier, and also acting as the Governing Board(s) of such special districts as have been created according to law and having conducted business herein, met on this date at 1:30 P.M. in Conference Session in Building "F" of the Courthouse Complex with the following members present: CHAIRMAN: David C. Brown VICE-CHAIRMAN: Clifford Wenzel John A. Pistor C.R. "Russ" Wimer Thomas P. Archer ALSO PRESENT: William J. Reagan, Clerk; Harold L. Hall, Chief Deputy Clerk/Fiscal Officer; Edna Brenneman, Deputy Clerk; Irving Berzon. Utility Director; and Robert Best. Budget Analyst. AGENDA 1. County Master Water Plan 2. Utility Division - Budgets Review PRESENTATION OF ALTERNATIVE ANALYSIS BY CONSULTANTS (CH2M HILL) RE WATER SUPPLY. TREATMENT AND DISTRIBUTION SYSTEM STUDY OF WESTERN COLLIER COUNTY (COUNTY MASTER WATER PLAN) - REPORT AND RECOfotlENDATION TENTATIVELY ACCEPTED; OFFICIAl. DETERMI- NATION TO BE HADE AUGUST 21, 1979 PENDING REPORT RE FISCAL FEASIBILITY OF RECOMMENDED ALTERNATIVE Utility Director Irving Berzon explained that under an agreement with the City of Naples the County is committed to developing a water utility system, part of which includes the construction of a water transmission facility. raw water supply. treatment plant. and the like. by 1982, with construction to begin by 1981. He said that a number of consulting contracts were awarded. i.e. appraisal of the Marco Island Utilities. Isle of Capri Utilities. and the development of a Master Water Plan, the latter being addressed during the Workshop Session this date. Following the presentation by the consultant. Mr. Berzol! said that he would report on the recommended alternative as contained in the letter dated August 13. 1979 from the consultants. CH2M Hill, Inc. 60C~ 041 ~ACE 6GB August 14, 1979 Consu~~'nt Ted Smallwoo~, C~2M Hill, stated that the study program set up was to develop the water resources that were available and from that to develop alternatives for systems that could be developed for the providing of potable water to the users in the western portion of Collier County. By referring to the Report entitled Presentation of Alternative Analy~is, iNA44907.80 dated August. 1979*, and the flipchart displayed, Mr. Smallwood .. reviewed each of the various alternatives, as follows: *Complete Report on file in office of Clerk of the Board. 1. Marco Island Area A. Alternative One Acquire existing Marco Utilities. Oev~lop new well field east of 951. south of 84; construct new raw water transmission facilitie to existing plant and expand existing plant to meet 1985 and 1990 demand requirements. B. Alternative Two Acquire existing Marco Util1ties. Expanc! existing 1 illle softening plant and improve raw water pumping facilities to meet 1985 demands construct new well field and reverse osmosis plant to supplement existing lime softening plant to meet 1990 d~nds. C. Alternative Three Acquire Marco Utilities. Expand existing plant to meet projected 1985 demand of 10.3 mgd; increase pumping rate at pit to 7 mgd; construct surface water intake and injection well on Golden Gate Canal; develop recharge well field and construct new 18" raw water main. 2. Isle of Capri Area A. Alternative One Acquire existing utilities. Expand well field to meet 1985 demand of 0.75 mgd; discard well field and treatment facilities and connect to regional plant in 1985. 3. East Naples Area A. Alternative One Develop well field east of 951 and south of S.R. 84. construct new treatment plant and transmission facilities. B. Alternative Two Purchase raw water from City of Naples and construct new 2.5 mgd plant and transmission facilities. August 14. 1979 C. Alternative Thr~ Construct surface water intake and injection well on Golden Gate Canal; develop recharge well field and construct new 2.5 mgd plant and transmission facilities. 4. Golden Gate Area A. Alternative One Acquire existing utilities. Expand existing plant to meet projected 1985 demand of 0.92 mgd; construct 1.5 mgd low pressure membrane treatment plant and well field to meet project 1990 demand of 2.0 mgd; construct new transmission facilities. 5. North Naples Area A. Alternative One Continue purchase of Treated Water from City of Naples; construct additional transmission and storage f~cilities to meet 1985 and 1990 demands and construct new well field and treatment plants to meet 1990 and beyond demand. B. Alternative Two Acquire existing 5 mgd stor!ge and repumping facilities and existing one mile of 12" main and 2 miles of J6" main from the City of Naples construct new 4.0 mgd well field and low pressure membrance softenin' treatment plant; construct 4 miles of 20" main, 2 miles of 16" main. and lis miles of 12" main to meet 1985 demand; construct 2.0 mgd well field and treatment plant expansion. lis miles of 12" main and a one million gallon reservoir and re-pumping facilities to meet 1990 demand. 6. Regional System A. Alternative One - Golden Gate. East Naples. Isle of Capri. Marco Isl. Acquire existing utilities. Construct necessary improvements and develop new raw water, treatment. storage. and transmission faciliti, to meet 1985 demands of 15 mgd and provide for expansion to meet 1990 demand of 20 mgd. B. Alternative Two - North Naples. East Naples, Golden Gate, Isle of Capri, Marco Island Continue purchase of treated water for North Naples area from the City of Naples; acquire existing utilities and construct necessary improvements; develop new raw water treatment. storage. and trans- mission facilities to meet 1985 demand of 15 mgd and"provide for expansion to meet 1990 demand of 26 mgd. Included in the Report for each of the alternatives was an Estimated Investmel Schedule for 1980 and, where applicable. for the years 1983 and 1987, together witl Dwelling Unit Projections for each of the areas including Demand Projections for both average and peak periods. It was pointed out by Mr. Smallwood that water re- liability factors were shown on the flipchart but not included in the Report. eoc~ 047 ~AGf 670 August 14, 1979 Each of the alternatives were reviewed with Mr. Smallwood responding to queries from the Board. including such matters as the Affect the delay in construction of the Henderson Creek Weir is having on the Marco Island area's water supply; the improvements being made to that area's utilities; the possibili1 that impact fees are not sufficient to pay for projected expansions of the systems; the wisdom of purchasing the Isle of Capri system and abandoning same in 1985, as proposed; also, the methodology used for computing future rates based on inflationary factors, the economic affect the alternatives presented could have on the City of Naples. utility system, and like matters. Responding to Commissioner Pistor's inquiry about the feasibility of using effluent for irrigation on Marco Island, Mr. Smallwood said that this could be a significant factor and should be further reviewed. Concluding his presentation. Mr. Smallwood reiterated the recommendations cont~ined ir. his letter of August 13, 1979, the first of which is for the Board of County Commissioners to adopt and implement Regional Alternative Two for develo~~ent, the primary benefits being as follows: 1. The initial cost per 1,000 gallons of water produced by the system compares favorably with the other alternatives. 2. The cost per 1,000 gallons, based upon present worth value, continues to improve and provide significant savings to the user over other alternatives. 3. The cost for expansion beyond 1990 demands compare favorably with other alternatives. 4. It provides for high degree of reliability for service. 5. It establishes a uniform County system for a developing community. 6. It provides a greater degree of security for bond purchasers. Mr. Smallwood also touched briefly on the other two alternatives being recommended which he said could be considered reasonably viable alternatives to the above-referenced recommendation; i.e. Regional System Alternative One, and a combination of Marco Island Alternative Three, East Naples (Isle of Capri) Alternative Two, Golden Gate Alternative One, and North Naples Alternative One. ~ August 14, 1979 Commissioner Wenzel expressed his desire to have an opinion from experts in the field of finance to determine if the proposed recommendation is fiscally sound for implementation. Chairman Brown requested that Mr. Berzon work with the County's bondsman in this regard and report back to the Board. Mr. Berzon advised that a report could be presented to the Board the fOllOWing week; howevel he said that it must be recognized that the recommendation contained in the Repol particularly for the acquisition of the utility, is based on a price which, at this time. is unconfirmed. Commissioner Wenzel requested that Mr. Berzon confirm whether or not the asking price, when determined. is fiscally sound; if not, further negotiations would be needed. Mr. Smallwood stated that the figure! in his Report are based on the appraisal study made by Hole, Montes and AssociatE for the acquisition of the Isle of Capri and Marco utility systems. In this regard. Mr. Smallwood said that the impact of the purchase price of the subject utilities will be much less on the feaSibility of the regional pla~ than it would be on an individual Marco system alone which is an issue that the Board will haVE to accept. lie added that the Board is dealing with a regional water system. providing water to all users in western Collier County on the same basis, becaUSE in the Board's viewpoint it is the most economical method. He continued by stati that if the Board adopts the regional concept, the purchase price of. for instanc $5,500.000 as opposed to, for instance. $7.500,000 will not make the regional concept economically unfeasible, noting that it may raise the price from $1.59 to $1.61 per 1.000 gallons; however. said Mr. Smallwood. it is not like raising the price on the Marco Utility ~ystem from $1.72 to $2.10 per 1,000 gallons. Prior to a definite action being taken on which alternative to accept. Mr. Berzon suggested that it would be in the Board's very best interests to defer suc action for at least a week to permit further review of the Report and recommendat and that a workshop session be scheduled for this purpose. Commissioner Archer moved that the subject Report be accepted and that an official determination re the recommendation be made during the Regular Session August 21. 1979. The motion was seconded by Commissioner Pistor and unanimously carried 5/0. BOC~ 047 PAGE 671 August 14, 1979 Mr. Berzon observed that the p,ogram is basically about two weeks behind on the original development schedule and if the aforementioned recommendation is accepted by the Board during the next Session. he would be requesting authorization to advertise for consultants, and also to take whatever steps are necessary to start bond validation proceedings for the entire system. He said that until the latter matter is resolved, there can be no further progress made. not even"" the design stage. When asked by the Chairman to comment. Fiscal Officer Harold Hall stated that he concurred with the action taken by the Board. He asked that, when the fiscal feasibility is being reviewed, consideration be given as to whether or not there should be one Chapter 153 Part 2 District or if the County should continue to deal with two as is being done in this area at the present time. He said that this matter is one of the items the fiscal consultant should consider. Chairman Brown directed that Mr. Hall meet with Hr. Serzon and the fiscal consultant~ when the fiscal feasibility of the proposed recommendation is being determined. UTILITY DIRECTOR REPORTS ON VARIOUS WATER AND SEWER DISTRICTS' INDEBETEDNESS TO GENERAL FUND - lEGAL OPINION RE REPAYMENT TO BE FORTHCOMING Utility Director Irving Berzon recalled that during the Board review of the Utility Division's budgets for FY 1979-80 there were questions raised about the status of the "debts" owed to the General Fund by the various Utility D1stricts. To respond to those questions, Mr. Berzon read in its entirety his letter dated August 14, 1979 to Chairman Brown which listed the categories of activities in the various Utility Divisions. together with the amounts currently owed to the General Fu.1d. The letter. as read by Mr. Berzon, concluded with his hope that the Board of County Commissioners. as Ex-Officio Governors of the various water and sewer districts. would concur with the findings contained therein and that the recom- mendations offered would be adopted. Mr. Berzon said that there is a question remaining as to whether or not there is a legal obligation (statutory requirement) of repaying the General Fund before September 30. 1979. He said that the matter has been referred to the County Attorney for his opinion which should be forthcoming within the next ten days. August 14, 1979 Clerk William Reagan stated that, from his point of view. the funds have to be paid back by September 30, 1979, unless County Attorney Pickworth can show some statutory authority which states that this is not necessary. Commissioner Archer inquired about the opinion of the Attorney General with regar to the matter. Mr. Reagan said that the Attorney General's opinion, 71-375, whfc was requested by his predecessor in 1971. although it addresses matters similar to what is being discussed, was directed more to whether the General Fund is allowed to loan money out. He said that of more concern is the time period on th loan. Mr. Reagan said that unless there is statutory authority provided. the matter wfll have to be taken to court to obtain a determination of the question that. although,certain statutes say funds can be loaned, there is no time period stipulated. He added that everything points to the fact that loans must be paid back within the same fiscal year, citing such sources as the Comptroller's office the Attornoy General's opinion. the County Commissio~er's manual~. and the SAC Association. for thfs assumption; however. there is no statutory authority statin. definitely that this has to be done. Following further brief dfsc~lssion. Mr. Reagan stated that both he and the Fiscal Officer want "everything to be in order" with the Board emphasizing that t' is their desire also. FY 1979-80 BUDGETS FOR COUNTY WATER-SEWER DISTRICT, IMHOKALEE WATER AND SEWER DISTRICT. AND MARCO WATER AND SEWER DISTRICT - REVIEWED AND TENTATIVELY APPROVED Commissioner Archer moved, seconded by Commissioner Wimer and unanimously carried 5/0. that the Budgets for the County Water-Sewer District. the Immokalee Water-Sewer District. and the Marco Water-Sewer District for FY 1979-80 be tentat approved. .. .. * * * * * * * * * * * * * .. .. The meeting was adjourned by order of the Chair - Time: 3:25 P.M.