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06/13/1988CITY COMMISSION SPECIAL WORK SESSION A.W.T. SEWER UPGRADE AND SEWER RATES June 13, 1988 The City Commission of the City of Clearwater met at City Hall, Monday, June 13, 1988, at 10:40 A.M., with the following members present: Rita Garvey MayorCommissioner James Berfield ViceMayor/Commissioner Lee Regulski Commissioner Don Winner Commissioner William Nunamaker Commissioner Also present were: Ron H. Rabun City Manager Cynthia Goudeau City Clerk The Mayor called the meeting to order and the following items were discussed: The City Manager stated that the state has now passed legislation that will allow the City of Clearwater to upgrade its water pollution plants to advanced waste water treatment (AWT) and allow discharge into Tampa Bay. Prior to this time the City has not been allowed to do this. He also reported that he the Public Works Director, and City Attorney would be going to Atlanta to meet with the Environmental Protection Agency (EPA) regarding the July 1st deadline for the City to have AWT in place. Bill Baker, Public Works Director, provided background and a chronology regarding the attempts the City has made in the past to address the waste water requirements of both the State and Federal governments. He stated the City of Clearwater has diligently proceeded with everything that has been requested; however, they have been unable to meet the requirements as they have continued to change up until this point. He stated in 1987 the Florida Legislature passed the AWT law and Clearwater is now on track to accomplish that. He stated Dr. Ross has already done a study regarding the impact of AWT effluent on Tampa Bay and the discharge will actually upgrade the water. Concerns were expressed that permits should be pulled prior to the next legislative session and Mr. Baker responded that the City is preparing to do this. Joseph R. McFate, Planning and Urban Development Director, stated we tentatively have an agreement with Safety Harbor regarding their capacity at the Northeast Plant. He stated that Safety Harbor now has a one million gallon per day capacity and with the expansion will add three million more for a total of four. Safety Harbor will pay the cost for their additional capacity. Clearwater will loan them one million gallons of capacity until the upgrade of the plant is completed. He stated the bond issue is being structured to include the additional five million dollars for Safety Harbor's capacity and that the total plant will be upgraded to a fourteen million gallon per day capacity. In response to a question, it was indicated that staff is comfortable with the agreement but the two managers need to finalize the details. It is hoped the agreement will be on the Commission Meeting of July 7th for approval. Terry Jenning, Assistant Public Works Director, went over the permitting process that will be required. He stated that EPA will provide operational permits and those permits are close to being issued. The permit for the Marshall Street Plant has been issued. The Department of Environmental Regulation (DER) issues the construction permits. Conceptual plans were submitted to them in April. Marshall Street will probably be the first to be permitted and DER is still reviewing data for the other two. Steve Poe of William R. Hough and Company, stated they had looked at different options for the financing of this upgrade and are recommending the City issue its own bonds. Bond Counsel is currently preparing the ordinance that will be necessary for this. Part of this ordinance will also authorize the refunding of existing bonds and this will produce debt service savings. Projected closing on the bonds is November and the refunding would be thirty days prior to that. The ordinance will be before the Commission in July. Harry Wild of Briley, Wild and Associates, distributed an Executive Summary of the sewer rate study for the City of Clearwater, Florida. He stated it is assumed that the sewer system is a self supporting function and the rates must be increased to a level to provide coverage for currently outstanding bonds and the new bond issue. He stated the increases proposed are multiyear increases and the advanced wastewater treatment is scheduled to be in place at all three plants by October of 1990. In response to a question, it was indicated that the bonds will be for thirty years. Discussion ensued regarding whether or not there will be requirements in the future that may require even more expenditures. It was stated that there is no way of predicting this; however, if enhancements are required, the City will have to comply. John Dennis of Briley, Wild and Associates, reviewed the construction schedule for the three plants. He stated the final design is underway for all three and they hope to be able to accelerate the beginning of the project. He stated the East Plant will be the most expensive as some demolition is required. In response to questions, he indicated that there was no justification for additional plants and that full advantage of automation was taken. A question was raised regarding whether or not there were any funds available to assist the City in paying for these upgrades. It was stated there are no grant programs and that loan programs available have significant strings attached to them. It is to the City's advantage to issue their own bonds. The City Manager indicated a report regarding the water study will be released in the near future. The meeting adjourned at 11:52 a.m.