HomeMy WebLinkAbout1995 08 08 - Acquisition of City of Sebastian Utility SystemIndian River Coun
BOARD OF COUNTY COMMISSIONERS
Department of Utility Services
Public Hearing Document
Florida Statutes Chapter 125.3401
August 8, 1995
Acquisition of City of Sebastian Utility System
ch125seb.doc
INDIAN RIVER COUNTY, FLORIDA
Public Hearing Document
August 8, 1995
City of Sebastian Utility System Acquisition
Date: July 28, 1995
To: James E. Chandler
County Administrator
Thru: Terrance G. Pint
Director of Utility Services
Prepared and / n
Staffed By: Harry E. Asher y�i/'�'
Assistant Director of Utility Services
Subject: Acquisition of City of Sebastian Utility System - Florida Statutes Chapter
125.3401 - Purchase or sale of water, sewer or wastewater reuse utility by
County.
Indian River County (County) has received an offer of sale from the City of Sebastian for its' utility system.
Before the County can purchase the utility system it must comply with Florida Statutes, Section 125.3401,
as follows:
Section 125.3401 - Purchase or sale of water. sewer or wastewater reuse utility by County.
No County may purchase or sell a water, sewer or wastewater reuse utility that provides service to the public
for compensation until the governing body of the County has held a public hearing on the purchase or sale
and made a determination that the purchase or sale is in the public interest. In determining if the purchase
or sale is in the public interest, the County shall consider, at a minimum, the following:
1. The most recent available income and expense statement for the utility.
2. The most recent available balance sheet for the utility listing assets and liabilities, and clearly
showing the amount of contributions in aid of construction and the accumulated depreciation thereon.
3. A statement of the existing rate base of the utility for regulatory purposes.
4. The physical conditions of the utility facilities being purchased or sold.
5. The reasonableness of the purchase or sales price and terms.
6. Impacts of the purchase or sale price on the utility customers.
7. Additional investment required.
8. The alternatives to the purchase or sale and the potential impact on utility customers.
9. Ability of the purchaser to provide and maintain high quality and cost-effective utility service.
CH125PRS.DOC
TABLE OF CONTENTS
CHAPTER 125.3401 REQUIREMENTS SECTION
THE MOST RECENT AVAILABLE INCOME AND EXPENSE STATEMENT I
THE MOST RECENT AVAILABLE BALANCE SHEET
2
STATEMENT OF EXISTING RATE BASE OF THE UTILITY 3
ANALYSIS OF PHYSICAL CONDITIONS OF THE UTILITY 4
STATEMENT OF THE REASONABLENESS OF THE PURCHASE 5
ANALYSIS OF THE IMPACT OF THE PURCHASE ON THE UTILITY 6
CUSTOMERS
ADDITIONAL INVESTMENT REQUIRED
H
ALTERNATIVES TO THE PURCHASE OR SALE AND THE POTENTIAL 8
IMPACT ON UTILITY CUSTOMERS
ABILITY OF THE PURCHASER TO PROVIDE AND MAINTAIN HIGH 9
QUALITY AND COST-EFFECTIVE UTILITY SERVICE
ADDITIONAL INFORMATION
PROPOSED INTERLOCAL AGREEMENT 10
CITY OF SEBASTIAN RESOLUTION NO. R-9542 11
SECTION 1
The most recent available income and expense .statement for the utility.
Audited Income and Expense Statement as of September 30, 1994 attached
UTILITIES FUND
CITY OF SEBASTIAN, FLORIDA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS
(ACCUMULATED DEFICIT)
YEAR ENDED SEPTEMBER 30, 1994
OPERATING REVENUES
Charges for services f 889,780
OPERATING EXPENSES
Personal services 208,868
Material, supplies and other
operating expenses 559,225
Depreciation 156,696
Amortization 6,087
TOTAL OPERATING EXPENSES 930,876
OPERATING LOSS (41,096)
NON-OPERATING REVENUES (EXPENSES)
Interest income 37,811
Interest expenses (203,840)
TOTAL NON-OPERATING REVENUES (EXPENSES) (166,029)
NET LOSS, BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE (207,125)
CUMULATIVE EFFECT OF ACCOUNTING CHANGE ON
YEARS PRIOR TO 1994 (33,455)
NET LOSS (240,580)
RETAINED EARNINGS, BEGINNING OF YEAR 32,355
ACCUMULATED DEFICIT, END OF YEAR (208,225)
The accompanying notes are an integral part of these statements.
-2-
Charles W. Hayman, Jr.
Roger W. Dobson
Barbara J. Oswalt
Honorable Mayor and
City of Sebastian
Sebastian, Florida
HOYMAN, DOBSON & COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
215 Baytree Drive, Suite 1, Melbourne, Florida 32940 (407) 255-0088 Fax (407) 259-8648
Independent Auditor's Report
Members of City Council
Eugene K. Bfeming
1homas L. Kirk
Karen E. Kirkland
We have audited the accompanying financial statements of the Utilities Fund of
City of Sebastian, Florida, as of and for the year ended September 30, 1994.
These financial statements are the responsibility of the City of Sebastian,
Florida's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
As discussed in Note 1, the financial statements present only the Utilities Fund
and are not intended to present fairly the financial position and results of
operations of the City of Sebastian, Florida, in conformity with generally
accepted accounting principles.
In our opinion, the financial statements referred to in the first paragraph
present fairly, in all material respects, the financial position of the Utilities
Fund of City of Sebastian, Florida, as of September 30, 1994, and the results of
its operations and cash flows for the year then ended in conformity with
generally accepted accounting principles.
Hayman, Dobson & Company, P.A.
March 29, 1995
American Institute of Certified Public Aecoun-tT i # Florida Institute of Certified Public Accountants
Private Companlas Practice Seclion of the A.I.C.P.A. k Accounting Firms Associated, Inc.
SECTION 2
The most recent available balance sheet for the utility, listing assets and I
liabilities, and clearly showing the amount of contributions in aid of
construction and the accumulated depreciation thereon.
Audited Balance Sheet as of September 30. 1994 attached
HOYMAN, DOBSON & COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
215 Baytree Drive, Suite 1, Melbourne, Florida 32940 (407) 255-0088 Fax (407) 259-8648
Charles W. Hoyman, Jr. Eugene K. Bjeming
Roger W. Dobson Thomas L Kirk
Barbara J. Oswalt Karen E. Kirkland
Independent Auditor's Report
Honorable Mayor and Members of City Council
City of Sebastian
Sebastian, Florida
We have audited the accompanying financial statements of the Utilities Fund of
City of Sebastian, Florida, as of and for the year ended September 30, 1994.
These financial statements are the responsibility of the City of Sebastian,
Florida's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
As discussed in Note 1, the financial statements present only the Utilities Fund
and are not intended to present fairly the financial position and results of
operations of the City of Sebastian, Florida, in conformity with generally
accepted accounting principles.
In our opinion, the financial statements referred to in the first paragraph
presellt fairly, in all material respects, the financial position of the Utilities
Fund of City of Sebastian, Florida, as of September 30, 1994, and the results of
its. operations and cash flows for the year then ended in conformity with
generally accepted accounting principles.
Hoyman, Dobson & Company, P.A.
March 29, 1995
American Institute of Certified Public AccountaNsi �, Florida Institute of Certified Public Accountants
Private Companies Practice Section of the A.I.CP.A. ♦ Accounting Firms Assodated, Inc.
UTILITIES FUND
CITY OF'SEBASTIAM, FLORIDA
BALANCE SHEET
SEPTEMBER 30, 1994
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 616,929
Investments 402,274
Accounts receivable 93,689
Inventory 91156
TOTAL CURRENT ASSETS 1,122,048
RESTRICTED ASSETS
Investments 356,294
OTHER ASSETS
Unamortized bond issue costs, less accumulated
amortization of $6,087 252,598
PROPERTY, PLANT AND EQUIPMENT, less
accumulated depreciation of $169,143 4,227,707
TOTAL ASSETS $5,958,647
LIABILITIES AND FUND EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 78,021
Due to other funds 130,000
Accrued compensated absences 6,196
TOTAL CURRENT LIABILITIES 214,217
LONG-TERM LIABILITIES
Bond payable, less unamortized
discount of $8,228 4,991,772
TOTAL LIABILITIES 5,205,989
FUND EQUITY
Contributed capital 960,883
Accumulated deficit:
Reserve for debt service 356,294
Unreserved (564,519)
TOTAL ACCUMULATED DEFICIT (208,225)
TOTAL FUND EQUITY 752,658
TOTAL LIABILITIES AND FUND EQUITY $5,958,647
The accompanying notes are an integral part of these statements.
-1-
SECTION 3
A statement of the existing Rate Base of the Utility for Regulatory purposes.
A statement of the existing Rate Base at the time of purchase from GDU is
attached
SECTION 3
The rate base of a utility company represents the depreciated cost q/Yhe plant
and facilities financed by the owners of a utility which is used to provide service to the
public. The rate base of a utility includes gross plant in service, less depreciation and
contributed capital and/or plant, and an allowance for working capital, materials, and
supplies and inventory.
City of Sebastian
Schedule of Year End Rate Base -Water System
as of September 30, 1995
Water Sewer Total
Description Rate Base (1) Rate Base (1) Rate Base (1)
Utility Plant In Service
Utility Land and Land Rights
Construction Work in Progress
Less:
Accumulated Depreciation
Contributions In Aid of Construction
Working Capital Allowance
TOTAL WATER RATE BASE(2)
$2,592,826 $1,550,144
$105,470 $148,410
$750,000
($81,509)
($304,327)
($54,723)
($380,421)
$4,142,970
$253,880
$750,000
($136,232)
($684,748)
$26,698 $19,077 $45,775
$3,089,158 $1,282,487 $4,371,645
(1) Amounts shown derived from the value per books of City of
Sebastian.
(2) Represents amount of utility investment for which a regulated
utility can earn a rate of return for rate making purposes.
SECTION 4
The physical conditions of the utility facilities being purchased or sold
A statement of the physical conditions of the utility facilities is attached
scbphy.doc
SECTION 4
WATER
The water distribution system consists of approximately 35 miles
of pipeline, 149 fire hydrants, and 1,910 water services. The pipelines
range in size from 2 to 16 inches in diameter and are constructed of
either polyvinyl chloride (PVC), asbestos cement (AC), or ductile iron
(DI). The water transmission and distribution system is considered to be
in average condition. Due to operational costs and necessary
improvements required to the water treatment plant the acquisition
evaluation was based on connection to County facilities and dismantling
of the water treatment plant.
It should be noted that there are maintenance items in the water
distribution system that will need to be addressed as follows: (1)
Replacement of galvanized service lines - estimated at approx. 150 (2)
Meter replacement and testing program (3) Fire hydrant maintenance
program (4) Valve maintenance program.
Wastewater
The wastewater collection and transmission system consists of
approximately 69,100 linear feet of gravity sewer and force mains
ranging in size from 3 to 12 inches in diameter, six (6) lift stations, and
200 manholes. Due to operational costs and necessary improvements
required to the wastewater treatment plant the acquisition evaluation
was based on connection to County facilities and dismantling of the
wastewater treatment plant.
An inspection of the wastewater system was conducted in
December, 1994 and again in July, 1995. The inspection included
manholes and lift stations in the Sebastian Highlands area. Random
manholes were inspected and found the system to be in good physical
condition, but in need of cleaning. Some lines were 60% to 75% full of
grit and grease. Each lift station was inspected and various problems
were noted. Cost estimates for the required renewal and replacement to
bring the stations up to County standards are included in the budget
requirements if the system is purchased. The wastewater collection
system will need to be televised to locate areas of inflow and infiltration.
The wastewater system is evaluated to be in poor to average condition.
07/26/1995 08:24 4077705478 IRC UTIL W 4077705478
INDIAN RIVER COUNTY
UTILITIES DEPARTMENT
INTEROFFICE MEMORANDUM
DATE: JULY 269 1995
TO: HARRY ASHER, ASSISTANT DTII (TIES DIRECTOR
FROM: TERRY SOUTHARD, WASTEWATER SUPERINTENDENT
SUBJECT: SEBASTIAN UTILITIES WASTEWATER SYSTEM
PAGE 02
A brief Inspection was performed on the Sebastian Highlands Wastewater System, in
December 1994, and Monday, July 24, 1995. This inspection Included inspection of
manholes and liftstations in the Sebastian Highlands area. Random manholes were
inspected and found the system to be in good physical condition, but in need of cleaning.
Some lines were 60% to 75% full of grit and grease. Cost of total cleaning and dumping
fees are:
$ 6,969.00
Each liftstation in the Highlands was Inspected along with the City Hall. Station #1 is dry
cantwet well station. The station upon inspection was 6" - 8" deep in sewage in the dry
pit section. One pump was still out for repair, but was due back from the shop this week.
This station is in need of immediate repair and changed over to submersible pumps. In
the event that the existing concrete in the wetwell is unusable, then we would need a
complete new station similar to Vero Shores. This would change the estimate of $35,000
estimate to near $60,000.
$ 35,000.00
Station #2 receives piggy -back flow from (4) four other stations and has a serious HZS
(Hydrogen Sulfide) problems. The concrete walls have deteriorated and this station is in
need of a fiberglass liner.
$ 8,000.00
The other (4) four stations appear to be in good physical condition, but all (6) six stations
In the Highlands and (1) one station at the City Hall will need generator receptacles.
$1,200.00
07/26/1995 08:24 4077705478 IRC UTIL W 4077705478 PAGE 03
The residential station at 813 Bailey Drive needs to be upgraded to a Rockrldge type
station.
$ 3,000.00
Ten of the eleven stations will require RTU's.
$ 52.400.00
The total cost for repairs are:
$106,669.00
If you have any questions or concerns, please do not hesitate to contact me.
City of Sebastian
I{earing Data
"THE PHYSICAL CONDITION OF THE UTILITY FACILITIES BEING PURCHASED
OR SOLD"
The water system consists of two water treatment plants, approximately 35 miles of pipe,
149 fire hydrants, and 1,910 water services. The largest system is the Sebastian Highlands
system which supplies water to Units 7, 9, 12, 14, 15 and portions of Units 3, 10, 11 , 16, and
17. The water treatment plant located at 170 Filbert Street was constructed in 1992. The
source of raw water supply is the shallow aerator and consists of two (2) raw water supply
wells each 100 feet deep. The plant is permitted as a 671,000 gallon per day treatment facility
ahhough the St. Johns River Water Management District has permitted the addition of a third
well for a total withdrawal of 190,000 gallons per day.
The treatment process at the Filbert Street plant consists of aeration, lime softening, filtration,
and disinfection. The finished water is stored in a 500,000 gallon ground storage tank. It is
pumped to the distribution system by high service pumps. Presently, the aerator is
functioning well but the screens on the aerator are being replaced. The precipitator for the
lime softening has been shut down for repairs. There is a restriction in the overflow pipe from
the precipitator to the filters which has not yet been removed. However, lime softening is not
an essential part of treatment required by the Department of Environmental Protection, since
it only provides treatment for hardness of water. The 400 and 600 gallon per minute high
service pumps are working well but the 250 gallon per minute pump does not work and must
be replaced. The plant has a 350ECW emergency diesel powered generator which provides
power for the entire plant when a power outage occurs. Enough water is usually produced
during an 8 hour shift to supply all of the needs of the 1659 customers on the system. The
plant can be considered to be in average to good condition.
The Sebastian Highlands water transmission and distribution system consists of over 31.3
mites (approximately 165,400 feet) of pipeline ranging in size from 2 to 16 inches in diameter
consisting of a combination of polyvinyl chloride (PVC), asbestos cement (AC), and ductile
iron (DI) pipe.
5.0
The following table summarizes die quality of water distribution and transmission pipe lines
for the Sebastian Highlands water system:
Pipe
Material
Diameter Size
Tyne
Linear Feet
16 -inch transmission
Ductile Iron
14,400
12 -inch transmission
Ductile Iron
25,826
10 -inch transmission
PVC (1)
1,700
8 -inch transmission
PVC (l)
7,780
6 -inch transmission
PVC (1)
2,200
6 -inch distribution
PVC or AC (2)
101,537
4 -inch distribution
AC (2)
10,500
3 -inch distribution
AC (2)
840
2 -inch distribution
AC (2)
600
Total
165,383
Notes: (1) PVC= Polyvinyl Chloride
(2) AC = Asbestos Cement
The. City has experienced no problems with transmission and distribution piping since it
purchased the system in December 1993. The pressure in the system is normally maintained
between 53 and 63 psi which meets the fire flow requirements of the City of Sebastian. The
water distribution system includes 133 fire hydrants throughout the service territory. Most
of the hydrants are in average to good condition.
There are 1,651 service connections to date, the majority of which are 3/4" polyethylene
service lines connected to 5/8" x 3/4" meters to serve residential houses. Larger service lines
provide water to the Pelican Ishmd Elementary School, Sebastian Lakes Condominiums, Food
Lion Supermarket, and the Sebastian Elementary School. The service lines are considered
in good to excellent condition with the exception being in Unit 9 where many of the services
areafvanized steel pipes which fail from time to time due to rusted connections over their
0
30 year ex• istence.
5.1
There are several different types of water meters within the system. Unfortunately, the City
does not have the personnel to test each one for accuracy so many of them could be reading
lower than they should be due to age which will normally slow down the meter. A majority
of the meter boxes need to have the dirt removed within which has accumulated and covered
the meter but majority of the meter boxes themselves are in good condition.
The Park Place / Palm Lake Club system consists of a 100,000 gallon per day water treatment
plant, two shallow raw water wells, approximately 3.3 miles of water main, and 16 lire
hydrants and 260 services. The water plant at 1000 Barber Street is a prefabricated steel
plant placed in service in 1985 which provides aeration and disinfection of the water. The
gallon ground storage tank and a 5,500 gallon hydropneumatic tank. The
plant has a 32.000
plant is fully automatic over a 24 hour period but does not have an emergency generator to
operate the plant during power outages. Basically, the plant is in very good to excellent
condition.
The water distribution system serves only the two mobile home park developments known
as Park Place and Palm Lake Club in the southeast portion of the City. The transmission and
distribution system consists of 17,315 linear feet of polyvinyl chloride (PVC) water main
ranging from 6" to 12" inches in diameter as summarized in the table below:
Pipe
Material
Te
w
linear Feet
Diameter Size
9,970
6 -inch
PVC
8 -inch
PVC
5,520
LO -inch
PVC
765
12 -inch
PVC
1 060 _
17,315
Total
The pipe in the distribution system is in excellent condition.
5.2
Due to improper restraint of a dead end line, there was only one failure which occurred in
1994 of an 8" water main. The 16 fire hydrants are in good to excellent condition.
There are approximately 260 service connections to date most of which are polybutylene.
The City has 0xperienced several failures of these service lines due to poor installation
procedures. These services are in fail: to good condition.
There seems to be an insufficient amount of shut off valves in the Park Place Mobile Home
park and insufficient amount of fire hydrants in the area of Heather Way and East and South
Derry Drives. Several blowoffs for dead end conditions appear to be under the pavement_
WASTE WATER SYSTEM
The Sebastian Highlands wastewater treatment plant consists of a 300,000 gallon per day
extended aeration activated sludge wastewater facility provided with screening aeration,
secondary clarification, filtration and chlorine disinfection. The plant, which is located at 810
Batley Drive, was built in 1982. Unfortunately, the wastewater plant percolation ponds are
limited to a permitted capacity of 142,000 gallon per day due to the eluent disposal
limitation. The sludge generated at this facility is treated utilizing an aerobic digestion
process. Liquid sludge is then hauled from the site by a private sludge hauling contractor and
disposed of on petmitted agricultural sites in St. Lucie County. The effluent disposal facilities
consist of three (3) percolation pond with a total disposal capacity of 0.142 NIGD.
5.3
I
The wastewater collection system consists of approximately 200 manholes, and 48,900 linear
feet of 8 diameter gravity sewer. The wastewater transmission system cousist of force
mains ranging in size From 2 to 8 inches in diameter and six (6) sewer lift stations. The
wastewater collection and transmission system, the treatment plant and effluent disposal
facilities are in average to above-aiterage condition. The lift stations are all duplex
submersible pump stations with the exception of Lift Station No. I which has a dry can / wet
Well combination. This station has recently been plagued with problems since the dry can was
inundated in early May. One pump is still not operational.
There is a small residential station at 813 Bailey Drive which has recently failed for the second
time this year. It is still not operational but repairs are in progress and it should be back on
line soon. Other stations that the City maintains are located at the Sebastian Elementary
School, Captain Hirami s, and at Sebastian City Hall. These stations are considered to be in
above average to excellent condition.
The Park Place/Pahn Lake Club wastewater system consists of 62 manholes, 15,390 linear
feet of 8" diameter PVC gravity sewer main, 80 linear feet of 4" diameter PVC force main,
and one sewage lift station. There are 260 customers connected via PVC sewer laterals to
lly terminates at the Indian River County Regional Lift
the wastewater system which eventua
Station north of Barber Street and east of the entrance to Park Place. The lift station a pumps
the sewage into a force main which runs south along US 1 and Old Dixie High y
to th
Countys wastewater treatment plant at Hobart Park The condition of the wastewater system
in Park Place and Palm Lake Club is considered to be excellent.
(utl-cond)
5.4
SECTION 5
The reasonableness of dee purchase or sales price and terms.
A statement as to the reasonableness of the purchse price and terms is attached
sebpurpr.doc
SECTION 5
The staff in its analysis of the purchase has reviewed all of the
documents utilized for the City's acquisition of the GDU utility system.
This included the engineering reports and the bond documents.
The purchase price as set forth in the offer of sale from the City of
Sebastian is $5,000,000.00, the amount of the bond indebtedness for the
utility system. The terms of the sale are as set forth in the Interlocal
Agreement (attached as part of this document).
The value of the Sebastian Utility System being received is as
follows:
Water and Wastewater Utility System
(Plant value less depreciation) $3,363,248
(Plant Purchased from GDU)
Indian River Drive Water Line 750,000
Fund Transfers 1,237,470
Total $5,350,718
The staff believes that the purchase price and terms of the
Interlocal Agreement are reasonable.
SECTION 6
Impacts of the purchase or sale price on the utility customers.
A statement as to the impact of the purchse price on the utility customers is
attached
SECTION 6
Impacts of lite purchase or sale price on the utility customers.
The current County utility customers would not be impacted by the
County's purchase of the City of Sebastian utility system. The debt
service for the acquisition cost and operation and maintenance
requirements will be supported with revenues generated from the existing
City customer base under current County uniform rates.
The current City of Sebastian utility customers would realize a
decrease in their monthly charges as follows:
5,000 Gals. Per Month 7,000 Gals. Per Month
Current City Charges $68.45 $82.97
Under County Rates $58.88 $70.52
Increase/(Decrease) ($9.57) ($12.45)
% Decrease - County Rates 13.98% 15.01%
In addition to the reduction in rates additional benefits to the City
of Sebastian utility customers would be as follows:
1. Improved quality of water.
2. Higher level of service.
3. More stable rate environment.
4. Ability to finance connection costs (impact fees).
UTILITY RATE COMPARISON
CITY OF SEBASTIAN VS. INDIAN RIVER COUNTY
RESIDENTIAL CUSTOMER - 5,000 GAL WATER & SEWER PER MONTH
RATES IN EFFECT AS OF JULY 1, 1995
BILLING BILLING
WATER RATE CITY UNDER CITY COUNTY UNDER COUNTY DIFFERENCE
RATES RATES RATES RATES DIFFERENCE
00 $2 00 $025 1111%
1 Charge
$2.25
$11.25
$2.25
$11.25
$2.
$9.20
$9.20 $2.05 18.22%
Facility Charge
10 Gal.(Per th.)
$2.51
$7.53
$1.75
$5.25 $2.28 30.28%
.7,000 Gal.(Per th.)
$2.65
$5.70
$2.15
$4.30 $1.40 24.56%
TOTAL WATER CHARGE $26.73 $20.75 $5.98 22.37%
SEWER RATE
Ing Charge $3.75
se Facility Charge $13.00
,000 Gal(Per th.) $3.75
TOTAL SEWER
WATER AND SEWER
my Surcharge (6%)
Tax (10%)
TOTAL BILL
BILL UNDER COUNTY RATES
Plus City Tax
TOTAL BILL
IMPACT FEE
WATER
SEWER
$3.75 $2.00
$13.00 $13.50
$18.75 $2.85
$35.50
$62.23
$6.22
$66.45
$68.45
CITY
$1,100
$1,650
$2.00 $1.75 46.67%
$13.50 ($0.50) -3.85%
$50.50 $11.73 18.85%I
$3.03
$53.53
$5.35
COUNTY
$1,570
$2,551
SEWER RATE
ing Charge $3.75
se Facility Charge $13.00
,000 Gal(Per th.) $3.75
TOTAL SEWER
WATER AND SEWER
my Surcharge (6%)
Tax (10%)
TOTAL BILL
BILL UNDER COUNTY RATES
Plus City Tax
TOTAL BILL
IMPACT FEE
WATER
SEWER
$3.75 $2.00 $2.00 $1.75 46.67%
$13.00 $13.50 $13.50 ($0.50) -3.85%
$43.00 $35.43 $7.57 17.60%1
$75.43 $60.48 $14.95 19.82%1
$7.54
-- $82.97--
$3.63
$64.11
$6.41
$82.97__ - _$70.52, _ $12.45 1
CITY COUNTY
$1,100 $1,570
$1,650 $2,551
UTILITY RATE COMPARISON
CITY OF SEBASTIAN VS. INDIAN RIVER COUNTY
RESIDENTIAL CUSTOMER - 7,000 GAL WATER & SEWER PER MONTH
RATES IN EFFECT AS OF JULY 1, 1995
BILLING BILLING
WATER RATE
CITY UNDER CITY COUNTY UNDER COUNTY DIFFEREN
RATES RATES RATES RATES
DIFFERENCE
Charge
$2.25 $2.25 $2.00 $2.00 $0.25
11.11%
Facility Charge
$11.25 $11.25 $9.20 $9.20 $2.05
$5.25 $2.28
18.22%
30.28%
)0 Gal.(Per th.)
-7,000Gal.(Perth.)
$2.51 $7.53 $1.75
$2.85 $11.40 $2.15 $8.60 $2.80
24.56%
TOTAL WATER CHARGE $32.43 $25.05 $7.38
22.76%
SEWER RATE
ing Charge $3.75
se Facility Charge $13.00
,000 Gal(Per th.) $3.75
TOTAL SEWER
WATER AND SEWER
my Surcharge (6%)
Tax (10%)
TOTAL BILL
BILL UNDER COUNTY RATES
Plus City Tax
TOTAL BILL
IMPACT FEE
WATER
SEWER
$3.75 $2.00 $2.00 $1.75 46.67%
$13.00 $13.50 $13.50 ($0.50) -3.85%
$43.00 $35.43 $7.57 17.60%1
$75.43 $60.48 $14.95 19.82%1
$7.54
-- $82.97--
$3.63
$64.11
$6.41
$82.97__ - _$70.52, _ $12.45 1
CITY COUNTY
$1,100 $1,570
$1,650 $2,551
City of Sebastian
Hearing Data
"THE IMPACTS OF THE PURCHASE OR SALE ON UTILITY CUSTOMERS, BOTH
POSITIVE AND NEGATIVE"
The major positive impacts of the proposed Agreement for the sale of the Sebastian Water
and Wastewater Utility System by the City of Sebastian to Indian River County are
summarized as follows:
1) The purchase will provide a uniform utility service fee structure for City of
Sebastian and Indian River County Utility customers.
2) Economy of scale will enable the County system to maintain a lower utility
rate structure.
3) The County will assume the municipal bond indebtedness, thus releasing the
current pledge of the City's one-half cent ('/z¢) sales tax to the Utility Debt
service.
4) The County will assume the task of operations and maintenance of the City
Utility System.
5) Because of the common utility customer rate, the operation, maintenance and
expansion of the customer service base provides a substantial financial
advantage to the City utility customers, particularly during periods of
financing.
6) Under the proposed County ownership, the City customer's water and
wastewater monthly fees and charges for service will be lower than the current
City fees and charges.
7) Future Capital Improvements required for the continued efficient operation of
the City of Sebastian Water and Wastewater System can be more economically
financed by the County.
8) The County has extensive experience in the operation and management of
water and wastewater systems and has the sufficient employee's to operate and
manage the City system.
7.0
The major negative impacts associated with the proposed utility sale are as follows:
1) The County will be the single authority for decisions relative to Capital costs.
2) The County will be responsible for resolving customer complaints rather than
the City of Sebastian.
3) Management policies that would be more beneficial to the City than the County
will be made by the County Utility Department.
4) The City customer will become a member of a larger organization and
personalized responses to questions will normally not be exclusively formatted
for the City customers.
7.1
SECTION 7
Additional in vestment required.
A statement as to the additonal investment required is attached
SECTION 7
Additional investment required
The investment to upgrade the water and wastewater systems
where required is well within the Countys ability, given the County's
past, present, and planned commitments to maintaining and expanding
service to meet effectively and efficiently the water and wastewater needs
of the County's utility service area.
The capital requirements for connection to the County facilities and
renewal and replacement requirements are attached.
The commitment contained in the Interlocal Agreement for the
expansion of the water and wastewater system to serve the areas of the
City of Sebastian not presently served are a very important consideration
to the future financial stability of the system.
tsebcon.wk4 - 7/26/95 SCHEDULE 2
INDIAN RIVER COUNTY
Department of Utility Services
Analysis of Acquisition of City of Sebastian Utilities
Capital Requirements for Connection to County Facilities
Sewer
Utilizing the existing 6" force main currently connected to the
force main near Reflections Development on US 1, would
require a regional lift station to be constructed at the wastewater
plant site - cost is as follows:
Lift Station $140,000
Force main relocations at plant site. $30,000
$170,000
10% engineering $17,000
10% contingency $17,000
Total $204,000
Remote Telementry Units for 10 lift stations @ 5,400. ea. $54,000
Renewal and Replacement(T. Southard Memo Attached) $72,200
Estimated demolition cost for Wastewater Plant $125,000
Total Sewer Connection Charges $455,200
Water
The following are the initial connections that are required to
supply water from the County facilities:
1. 16" connection CR510 North to existing 16" $213,534
Powerline Road
2. 8" connection at Reflections Development on US 1 $6,000
3. 12" connection at Sebastian Lakes Development on
SR 512
$94,000
4. Barber Street be in from US 1 - 12" line
$145,000
6. Master metering for all connection points.
$24,100
$482,634
10 % Engineering
$48,263
5% Contingency
$24,132
$555,029
Renewal and Replacement- Galvanized Lines
$25,000
(City of Sebastian memo attached)
Estimated Demolition/Removal of Water Plant
$100,000
Total Water Connection Charges
$680,029
Projected Engineering Services to Revise
Water, Wastewater, and Effluent Master Plans $50,000
Total Projected Capital Requirements for Connection to County Facilities $1,185,229
Page 1
SECTION 8
The alternatives to the purchase or sale and the potential impact on utility
customers.
A statement as to the alternatives to the purchase or sale and the potential
impact on utility customers is attached
SECTION 8
The alternatives to the purchase or sale and the potential impact on
utility customers.
The alternatives to the purchse of the City's utility system by the
County and the potential impact on (County) utility customers would be
as follows:
as follows:
1. No Sale and the City retain the utility system.
No Impact on the County utility customer.
The "no sale" option would impact the City utility customer
1. Higher rates to the current City customer.
2. Limited growth and expansion of the system.
SECTION 9
Ability of the purchaser to provide and maintain high quality and cost-
effective utility service.
A statement as to the County's ability to provide and maintain high quality
and cost-effective utility service is attached
SUCTION 9
Ability of the purchaser to provide and maintain high quality and
cost-effective utility service.
The County's finished water and wastewater treatmal regulatory ent at all f its
plants is in compliance with State and F toeCrov'de and maintain high
demonstrating the ability of the County p
levels of quality of service.
The cost of providing water and a production
rodwastewater and treatment facilities
considering the type and size of the p
and the level of treatment required to comply with State and Federal
regulatory agencies.
The County's sources of funding (water and wastewater impact
fees and bonds) demonstrate the effective use of capital in financing
improvements to the water and wastewater systems.