2006.01.19_TC_Minutes_Specialw
TOWN OF HIGHLAND BEACH
• MINUTES OF TOWN COMMISSION MEETING
SPECIAL MEETING
THURSDAY, JANUARY 19, 2006 200 P M
Mayor Harold R. Hagelmann called the Special Meeting to order in Commission
Chambers at 2:00 P.M., stating its purpose was as follows:
DISCUSSION ON THE FINANCING OF THE REVERSE OSMOSIS WATER
TREATMENT PLANT EXPANSION FROM 2.25 MGD TO 3.0 MGD, AND
CONSIDERATION OF A RESOLUTION SETTING THE BALLOT LANGUAGE
PERTAINING TO THE FINANCING OF THE EXPANSION TO BE VOTED ON BY
REFERENDUM ON TUESDAY, MARCH 14, 2006.
Town Clerk Doris Trinley called the roll. The Mayor, Vice Mayor Joseph J. Asselta, and
Commissioners Rachael Scala-Pistone, Miriam S. Zwick, and Jim Newill, CPA, were
present.
Also present were Town Attorney Thomas E. Sliney, Town Manager Dale S. Sugerman,
Bond Counsel Mark Raymond, as well as members of the general public.
After Roll Call the Pledge of Allegiance was given, followed by a minute of silence in
honor of the nation's service personnel.
Town Manager Dale S. Sugerman led discussion, advising that per the Palm Beach
County Health Department and the South Florida Water Management District, when a
water plant has reached 80% capacity, the next segment must be designed; when 90%
capacity is reached, construction must be underway to reach maximum capacity. It was
noted that the plant is running somewhere between 85-90% its capacity of 2.25 mgd,
with 2.91 mgd being the largest measured in 2005.
Mr. Sugerman also noted that the expansion of the reverse osmosis water treatment
plant would require voter approval to proceed, via referendum, because of cost
(estimated $3.8 million), which far exceeded the $350,000 funding limitation stated in the
Charter. However, Mr. Sugerman further noted that the actual cost -project, generator,
engineering, administration -would not be calculated until after the referendum had been
voted on in the March election.
Troy Lyn of Globaltech advised that the Town is in good position to get South Florida
Water Management's approval for more water, as it will be pulled from the deeper
Floridan Aquifer, rather than the more shallow Biscayne Aquifer.
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Minutes of Town Commission Special Meeting
January 19, 2006 Page 2 of
Some discussion took place regarding the prospects of buying water from either Boca
or Delray; however, Utilities Director Jack Lee explained that neither municipality
produced exactly the water our R.O. produced and, therefore, purchasing from either
would mean a "boil water" order for the Town.
Bond Counsel Mark Raymond reviewed the Resolution (No. 855) and the ballot language
contained therein (copy attached hereto and made part of these Minutes), noting that if
voters approved the referendum, only ad valorem monies could be used to secure a
bond issue. Attorney Sliney asked for an analysis of outstanding bond debt to ensure
that nothing was double-pledged.
Concluding discussion, VICE MAYOR ASSELTA/COMMISSIONER ZWICK made a
MOTION to go forward with a referendum to the people for approval of the
increased capacity of the R.O. plant with ballot language as follows:
May the Town of Highland Beach, Florida, proceed with a
project consisting of an expansion of the water treatment
plant at a cost which is in excess of $350,000.00 and which
is estimated to be $3,800,000.00?
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Roll Call met with unanimous favorable vote.
There being no further business to come before the Commission at this time, Mayor
Hagelmann adjourned the Special Meeting at 3:30 P.M. upon MOTION by VICE MAYOR
ASSELTA/COMMISSIONER SCALA-PISTONE.
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APPROVE:
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Vice Mayor
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Rachael Scala-Pistone, Commissioner
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Jim New I, A, Com issioner
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DATE: January 18, 2006
Office of the Town Manager
Interdepartmental Memo
TO: Honorable Mayor and Members of the Town Commission
Doris Trinley, Town Clerk
Tom Sliney, Town Attorney
FROM: Dale S. Sugerman, Town Manager
RE: Draft Resolution re: Referendum Election for the Proposed
Expansion of the Water Treatment Plant
Mark Raymond has forwarded on to me a draft resolution to be considered at the
Special Town Commission meeting scheduled for tomorrow afternoon at 2:00
pm. You will notice that the resolution provides for a notice of the referendum, as
well as outlines the appropriate ballot language. Of course, the cost associated
with the project needs to be filled into the blank.
You will recall from the Preliminary Engineering Design Report completed by
Globaltech in November of 2005, that the estimated cost of construction (less the
amount for the emergency generator) and engineering/administration fees
(calculated at 15% of construction) was $2,500,100.00 (with a range of -30% to
+50%). That being the case, the range on this construction project could be as
low as $1,750,070.00 (-30%) and as high as $3,750,150.00 (+50%). In the end,
some number has to go into the blank of the resolution.
The deadline for getting this resolution on the March 14th ballot is January 27th at
5:00 pm, so this is the last Commission meeting before that deadline. If this item
is to go on the ballot this spring, it must be decided upon at this meeting.
Both Mark Raymond, bond counse{, and Troy Lyn, project engineer will be in
attendance at the meeting.
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Dale S. Sugerman
Town Manager
cc: Jack Lee, Director of Public Works
Town of Highland Beach, Florida
Water and Wastewater Rate -Study
January 2006
Prepared by:
Camp Dresser & McKee Inc.
1601 Belvedere Road, Suite 211 South
West Palm Beach, Florida 33406
Phone: (561) 689-3336
Fax: (561) 689-9713
Project: 35095-46521-OO1,RT
Final Draft Report
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TABLE 4-3(a) '
TOWN OF HIGHLAND BEACH, FLORIDA
WATER AND WASTEWATER RATE STUDY
PROJECTION OF WATER SYSTEM CASH FLOW AND D/S COVERAGE W/ADDITIONAL DEBT
Fiscal Year
Budgeted. Projected
Description 2006 2007 2008 2009 2010
Operating Revenues:
Water Utility Revenues (1)
Fire Hydrant -Maintenance Fee (1)
Miscellaneous Revenues (1)
Total Operating Revenues
Total Operating Expenses (2)
Net Op. Revs. Avail. For D/S (3)
Debt Service Requirement:
Existing Debt Service (4)
Add'I. Debt Service -New Money (5)
Tota{ Debt Service
Debt Service Coverage (6)
$1,250,000 $1,250,000 $1,253,600 $1,257,200 $1,260,800
30,240 30,240 30,240 30,240 30,240
103, 800 103, 800 103, 800 103, 800 103, 800
$1,384,040 $1,384,040 $1,387,640 $1,391,240 $1,394,840
1,857,660 1,973,400 2,097,100 2,229,300. 2,370,600
($473,620) ($589,360) ($709,460) ($838,060) ($975,760)
$895,115 $895,115 $895,115 $895,115 $895,115
379,813 646,803 646,803 646,803 646,803
$1,274,928 $1,541,918 $1,541,918 $1,541,918 $1,541,918
(0.37) (0.38) (0.46) (0.54) (0.63)
Net Op. Revs. After D/S (7} ($1,748,548) ($2,131,278) ($2,251,378) ($2,379,978) ($2,517,678)
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ev.: (8) $1,477,035 $619,435 $619,435 $619,435 $619,435
Net Revenues Avail. For Capital (9) ($271,513) ($1,511,843} ($1,631,943) ($1,760,543) ($1,898,243)
Annual Capital Expenditures from Ops. (10) 108;300 138,268 140,316 142,426 144,599
Annual Surplus/(Deficit) (11) ($379,813) ($1,650,111) ($1,772,259) ($1 902 969) ($2 042 842)
Cum. % Rate Adj. to Eliminate Deficit (12) 30.4% 132.0% 141.4% 151.4% 162.0%
(1) Taken from Table 4-1(a).
(2) Taken from Table 3-1.
(3) Equals Total Operating Revenues minus Total Operating Expenses.
(4) Taken from Table 3-2.
(5) Full amortization beginning Fiscal Year 2006 assuming 20-year term, revenue bond
Assumes an interest rate of 4.56% with $75,000 issuance costs.
Amount financed equals Net Proceeds from Debt Issuance in Table 4-3(b).
(6) Equals Net Operating Revenues Available for Debt Service divided by Total Debt Service.
(7) Equals Net Operating Revenues Available for Debt Service minus Total Debt Service.
(8) Taken from Table 4-1(a). Excludes Connection Fees, which are applied to the capacity expansion projects.
(9) Equals Net Operating Revenues After Debt Service Plus: Other Sources -Non-Revenue.
(10) Taken from Table 3-3 as Total Capital Expenditures Funded from Operations.
(11) Equals Net Revenues Available for Capital minus Annual Capital Expenditures from Operations.
• (12) If a deficit occurs, equals negative value of deficit divided by Water Utility Revenues.
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TABLE 4-3(b)
TOWN OF HIGHLAND BEACH, FLORIDA
WATER AND WASTEWATER RATE STUDY
PROJECTED WATER SYSTEM SOURCES AND USES OF FUNDS
Fiscal Year
Estimated Pro~ected
Description 2006 2007 2008 2009 2010
SOURCES OF FUNDS
Beginning Balance of Funds on Hand (1)
Annual Surplus from Operations (2)
Proceeds from Debt Issuance (3)
G.F. Participation in New Generator (4)
Water System Connection Fees (5)
Interest Earnings on Construction Fund (6)
Total Sources of Funds
USES OF FUNDS
New Raw Water Well (7)
• RO WTP Train Modification (7)
New Generator @ Town Hall (7)
High Service Pumps (7)
Replace Old 8-Inch AC Main (7)
Engineering/Administration (7)
Total Uses of Funds
Ending Balance (8)
$200,000 $1,879,085 $2,405,507 $4,367 $80,204
0 0 0 0 0
4,840,000 3,380,000 0 0 0
128,700 128,700 0 0 0
0 0 75,000 75,000 75,000
20,585 42,422 23,860 837 2,354
$5,189,285 $5,430,207 $2,504,367 $80,204 $157,558
$828,750 $828,750 $0 $0 $0
285,000 0 0 0 0
858,000 858,000 0 0 0
1,000,500 0 0 0 0
0 1,000,000 2,500,000 0 0
337,950 337,950 0 0 0
$3,310,200 $3,024,700 $2,500,000 $0 $0
$1,879,085 $2,405,507 $4,367 $80,204 $157,558
(1) Provided by Town staff for Fiscal Year 2006. Thereafter, equals Ending Balance from previous year.
(2) Equals Annual Surplus from Table 4-3(a), but not less than $0.
(3) Amount plugged to eliminate deficits in all years, with debt service payments included in Table 4-3(a)
as Additional Debt Service -New Money. Assumes 20-year term revenue bond @ 4.56%.
(4) Assumed the General Fund will bear 15% of the cost of the new generator.
(5) Taken from Table 4-1(a).
(6) Equals Beginning Balance plus one half the difference between all other Sources of Funds and all Uses of
Funds, at an assumed interest rate of 2.00%.
(7) Taken from Table 3-3.
(8) Equal Total Sources of Fund minus Total Uses of Funds.
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Executive Summary
The RO WTP was permitted and constructed to produce a potable water flow of 2.25 mgd
with provisions to facilitate a future build out expansion to 3.0 mgd of potable water. Due to
increasing water demands, the Town would like to increase the capacity of the RO WTP to its
build out capacity of 3.0 mgd.
This Preliminary Engineering Design Report (Report) confirmed that an expansion of the RO
WTP to 3.0 mgd to meet existing and future buildout water demands is appropriate based on
available water demand information.
The Report also evaluated the RO WTP equipment and provides recommendations to increase
their capacities as required for the 3.0 mgd buildout condition. The following major
improvements are recommended for the RO WTP.
• Install a third raw water well and pump to provide additional raw water to the RO
WTP and to increase the reliability or firm capacity of the raw water system.
• Install a third cartridge filter to increase the reliability of the RO WTP pretreatment
capacity.
• Modify the existing RO trains to increase permeate capacity from 2.25 mgd to 3.0
mgd by the addition of more pressure vessels, membrane elements, and modification
of the existing turbochargers.
• Install a new 1750 kW emergency generator and automatic transfer switch to provide
. backup power for the RO WTP, high service pumps, Commission Chambers, Town
Hall, Post Office, Police Station, Fire Station, and new Library.
• Install new 400 kVA and 100 kVA transformers to combine electrical services for the
new backup generator.
• Install three new 100 horsepower (HP) high service pumps to replace two existing 40
HP high service pumps to increase the high service or distribution pumping capacity.
The estimated construction costs of the recommended improvements are listed in Table ES-1.
The estimated costs are order of magnitude estimates for planning purposes. Actual cost may
vary by plus 50% or minus 30% at this preliminary design level. The current economic
market conditions of rapidly increasing labor and building material costs also adds to the
unpredictability of the cost estimate.
Table ES-1- Summary of Estimated Costs for Recommended Improvements
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Item Im rovement Estimated Costs
aw Water Well nstall new well, submersible pump with variable $1,105,000
equency drive
Cartridge Filter nsta113rd cartridge filter and piping $86,000
O Train Modificatio stallation of RO pressure vessels, membrane $277,000
lements, associated piping and retrofit of existing
bo chargers.
ES-i
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Item Im rovement Estimated Costs
Generator nstallation of emergency generator, automatic $1,144,000
ansfer switch, two new transformer and
iscellaneous conduits, cables, manholes, and
isconnects.
igh Service Pumps stallation of 3 new 100 HP pumps, modification $667,000
o HSP room, modifications to pump suction and
ischarge piping.
Subtota $3,279,000
En ineerin Administration 15% $492,000
Tota $3,771,000
otes:
1. Estimated cost include construction, contractors' overhead profit at IS%, mobilization bonds/insurance at
8%, and contingency at 15%.
. More detailed cost breakdowns are provided in Attachment H
3. Estimated costs are order of magnitude estimates for planning purposes. Actual cost may vary by plus 50%
or minus 30%.
In order to construct the recommended improvements, the following bid packages are
recommended:
• • Raw Water Well Bid Package
• Generator Prepurchase Bid Package
• Cartridge Filter and RO Train Modifications Bid Package
• RO WTP Improvement Bid Package
The Raw Water Well Bid Package would include the drilling and construction of the well
only. This will allow a well drilling contractor to bid the job without a general contractor
markup. The Generator Prepurchase Bid Package will expedite the backup generator order
since the delivery time for a generator is 8 months or more from receipt of order. The
Cartridge Filter and RO Train Modification Bid Package will allow the RO WTP to increase
its treatment capacity to 3.0 mgd rather quickly as the modifications are fairly minor. Once
the South Florida Water Management District (SFWMD) Water Use Permit (WUP) has been
revised to 4.0 mgd, the RO WTP can produce 3 mgd with the existing two wells until the third
well becomes available. The additional treatment capacity should help shave peak demands
during the winter months. The RO WTP Improvement Bid Package should include the
installation of the raw water pipeline, raw water pump, prepurchased generator, automatic
transfer switch, transformers, and the modifications to the high service pumps (HSPs).
Proposed schedule for the improvements are provided in Table 4 of this report.
ES-2