HomeMy WebLinkAbout1983 09 13 City Commission Workshop Minutes
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WORKSHOP MEETING
CITY COMMISSION
CITY OF WINTER SPRINGS
SEPTEMBER 13, 1983
The Workshop Meeting was called to order by Mayor John V. Torcaso, at 7:00 p. m.
to discuss the acquisition of the North Orlando Water & Sewer Corporation.
Roll Call:
Mayor John V. Torcaso, present
Deputy Mayor Buck Adkins, present
City ~funager Richard Rozansky, present
City Attorney Tom Lang, present
Commissioners:
Jim Hartman, present
Inez Linville, present
William Jacobs, present
Leanne Grove, present
Also Present:
City Attorney Frank Kruppenbacher
Janelle Bronson, Attorney
Cal Conklin, City's Consulting Engineer
Bill Leedy of the Leedy Corporation
Attorney Tom Lang said they have come prepared to give the Commission a briefing
of where we are from a financial standpoint and an engineering standpoint, and make
some recommendations. Bill Leedy will give a summary of a letter he has prepared
with regard to the financial feasibility and Mr. Conklin will give a brief summary
of where we are from an engineering standpoint, and what we will have to do from an
engineering standpoint and what we will have to do to verify the physical assets
and approximate costs.
Mr. Bill Leedy, Leedy, Corp., reported that on August 17, 1983 the final rate schedule
was passed by the PSC, so we now have a full rate schedule that we can go by and
there are no interim rates. He said they have reviewed the reports of the water
and sewer systems operations over the last six years and they have made some projections
as to what the water and sewer system will do in the future based on what its done
over the last six or seven years. Mr. Leedy said they arrived at a total revenue
of approximately $1,184,000, this is for the first full year of operation that the
City would own this water and sewer system. Total expenses of approximately $621,000
and net revenues of approximately $563,000. Net revenues of that amount will support
a bond issue of $4,250,000. NOWSCO has been asking between $3,300,000 and $3,500,000.
Mr. Leedy explained that NOWSCO has suggested that the City would sell bonds and pay
them $2,800,000, and they would make up approximately $600,000, between now and the
end of the year or whenever we closed, in connection fees. They would in a sense,
prepay connection fees to themselves. So they would get a total of roughly $3,400,000
and that is the way they suggested doing it, which would be up to the Commission to
decide.
Mr. Conklin explained that he made an appraisal by three different methods to try
to insure that by this capitalized net income basis that the Leedy's have used, that
that is the lowest valuation that you would receive that the system would support.
Mr. Conklin said that of things that need to be done is coming up with a summary
engineering report that would be used in connection with the issuance of the bonds.
Mr. Conklin also discussed the South Seminole North Orange Wastewater Transmission
Authority. He feels we should continue to send representatives to talk to the
Authority to see what can be worked out. He said there are several alternatives:
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Workshop Meeting, City Commission, Sept. 13, 1983
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one is to get out completely, out of the Authority and get released from it. The
second thing is they would not enforce the hook-up to their system under any conditions
we are interested in or that if they did, it would only be done after a certain date
and we would be allowed to keep operating the existing sewage treatment plant
facilities here as long as they met state standards.
Mr. Conklin again stated the importance of pursuing the matter with the South
Seminole NOrth Orange County Wastewater Transmission Authority because they do have a
power, a permissive power, they do not have to do it under their legislative act to
require anybody in their whole service area to hook up and put their plant out of
existence, but since its permissive, its also in their power to not do it.
Then the matter of the physical inspection of the utility system, and Mr. Conklin
had a letter prepared for the Commission.
Attorney Lang asked for direction whether or not
with the negotiations. He asked that if someone
agenda and at the meeting to tell them to stop.
negotiations.
the Commission wants them to proceed
had objections that it be put on the
Otherwise they will proceed with the
Meeting was adjourned.
Respectfully submitted,
Mary T. Norton,
City Clerk