Fort Walton Beach Council agenda — 06-12-2007 workshop agenda — reading text

aTYOFFORTWALTONBEACH City Council Workshop Agenda - June 12, 2007 - 5: 30 P.M. City Council Chambers 107 Miracle Strip Parkway, SE Fort Walton Beach, FL 32548 CALL TO ORDER PLEDGE OF ALLEGIANCE Mayor Anderson APPROVAL OF AGENDA 1. General Public on items of City business. ( No Backup) 2. Review of Utility System Revenue Bond, Series 2005; general overview of related projects and expenditures. ( Requested by Council Member Pullen) ( Utilities Director) ( See Backup) ( See Additional Materials Folder in City Clerk' s Office.) 3. Discussion to determine the City Council' s interest in accepting the offer of a two- story, four bedroom home in Fort Walton Beach to use to help shelter the homeless, particularly women with children. Council Member Garvie) (See Backup) 4. Briefing on the upcoming Hurricane Season, the City' s Comprehensive Emergency Management Plan CEMP) and its Continuity of Operations Plan ( COOP). ( Fire Chief) (No Backup). ADJOURN Any person who decides to appeal any decision made with respect to any matter at this meeting will need a record of the proceedings, and for such purpose may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. (FS286.0105). The City of Fort Walton Beach adheres to the American with Disabilities Act and will make reasonable modifications for access to this meeting upon request. Please call City Clerk Helen Spencer at 850-833-9509 to make a request. For Hearing Impaired dial the City Hall TDD #850- 833- 9925 or 1- 800- 955- 8771 ( TDD) or 1- 800-955-8770 (Voice). Requests must be received at least 48 hours in advance of the meeting in order to allow the City time to provide requested service.  CITY COUNCIL WORKSHOP June 12, 2007 Workshop Agenda Review of Utility System Revenue Bond, Series 2005; general overview of related projects and expenditures Utilities Director) Agenda Item Number: WA- 2  CITY OF FORT WALTON BEACH MEMORANDUM To: Joyce Shanahan, City Manager From: John Hofstad, Utilities Director Date: June 5, 2007 Subject: Overview of Projects - Series 2005 Utility System Revenue Bonds Background: The City of Fort Walton Beach owns and operates water and sewer facilities for the benefit of its citizens and to support economic growth in southern Okaloosa County. The City began development of its water and sewer infrastructure in the early 1950s to service the needs of a small and centralized population hub along Santa Rosa Sound. As the area grew and corporate limits expanded, the demand for additional infrastructure increased. Today, the City's water and sewer department services the demand of over 20,000 people in a distribution network bounded by Hurlburt Field Air Force Base to the west, Santa Rosa Sound to the south, Choctawhatchee Bay to the east, and unincorporated areas of Okaloosa County to the north. During a Workshop held on June 9, 2004, Staff discussed with Council the need for various water and sewer capital improvements. These improvements ranged from water distribution and storage upgrades to wastewater treatment plant design work and upgrades. While growth projections limit our need to expand water production and increase sewage treatment capacity, we must continue to plan for future needs and address the concerns of an aging infrastructure. Realizing this need, City Council endorsed Staff's recommendations and requested additional information from Staff as to a funding methodology and timetable for implementation. The Staff reports provided Council on June 9, 2004 and November 9, 2004 outlined the major water and sewer needed in order to upgrade our facilities to today' s standards and to meet capital projects the needs of customers for the next 30- 40 years. In summary, these projects included: Water Transmission and Storage - This project includes the construction of two new elevated water storage tanks and the installation of a new 18" water transmission main linking the Golf Club area to the southern area of the City south of Cinco Bayou. The estimated cost for this element of the planned improvements is approximately $ 3, 647, 900. Wastewater Treatment Plant Upgrades - This project includes the design and construction of a new secondary treatment process at the wastewater facility along with various improvements to the ancillary processes at this facility. The revised estimated cost for this element of the planned improvements is approximately $ 5, 142,600. The total anticipated cost for these improvements including facility planning, engineering and design work, and construction is 8, 790, 500. In addition to these projects, the on- going CIPs approximately $ for 2 IN' Water Line Replacement ( CIP 5056) and Sewer Line Rehabilitation ( CIP 5032) were added to the list of long-term debt financing. The added cost for these two major projects requiring programs was $ 1, 025,000, bringing the total estimated amount for all improvements to $9, 815, 500. During the regularly scheduled Council meeting held on November 9, 2004, Staff presented to Council for adoption Resolution 04- 33. By unanimous vote, Council adopted this resolution thereby declaring the City's intention to design, acquire, construct, and equip certain capital improvements and to finance such capital improvements with the proceeds of tax- exempt obligations. On April 12, 2005, Council formally approved Ordinance 1633 on second reading, granting the authority entered the bond market in early 2005 by necessary to secure long-term debt financing. The City issuing $ 10, 910, 000 in " Utility System Revenue Bonds, Series 2005" to obtain funding for the proposed capital improvement projects. Discussion: The followin table summarizes how the bond roceeds were initiall dis ersed: Total Bond Issuance 10,910, 000. 00 less: Original Issue Discount 149,525. 60) Bond Insurance 61, 062. 37) Underwriter Discount 61, 864. 55) Total Expendable Proceeds 10, 637, 547.48 less: Additional per Bond Summary 722. 48) Cost of Issuance 97, 000. 00) Reserve 24, 325. 00) Remaining Balance for Projects 9, 815, 500. 00 Once the funds became available on May 5, 2005, Staff began the process of implementing all of the construction programs previously identified. The narratives below detail each of the various projects and their current status: Water - Elevated Storage Tanks During the June 30, 2005 City Council Meeting, Council awarded construction of two new elevated water storage tanks to CB& I Constructors in the amount of $1, 969, 800, which exceeded the 2005 initial project estimate by $ 154,800. By mid- summer 2006, CB& I completed construction of one new 500, 000 elevated gallon tank in the downtown area and one new 750,000 gallon tank on storage the City' s Golf Club at a total cost of $1, 952,644. The fmal payout for this project included a savings of $17, 156 from the original contract. Included in this element of the projects list was the demolition of two existing 100, 000 gallon elevated water storage tanks. These tanks were rendered obsolete with the completion of the two new tanks and needed to be removed from the system. Staff received Council authorization for this project during the 8, 2006 City Council Meeting. The project was awarded to Iseler August Demolition at the not to exceed cost of $64, 700. Due to further reductions in the final scope of 2 work, Staff was able to complete the entire project for $44,700, or $20,000 less than the original award amount. ( note: The original 2005 project estimate did not include a budget for the removal of the two existing tanks. At the time the project list was developed in February 2005, there was a strong market for used steel water storage tanks. Based on staff's discussions with our consultants at the time, demolition contractors would remove tanks at no cost for the salvage their salvage value. By the time the project was bid, this market no longer existed and contractors were charging a fee for demolition). Water - 18" Water Transmission Main During the April 11, 2006 City Council Meeting, Council awarded installation of approximately 15, 000 linear feet of 18" water transmission main to connect the northern area of the City in the vicinity of the Golf Club with the southern end of the City in the vicinity of Memorial Parkway. The project was awarded to Hemphill Construction Company in the amount of $2, 723, 645, which exceeded the 2005 initial project estimate by $890, 745. To date, this project is substantially complete with Staff having conducted the fmal walk-through in late May. Staff is in the process of reviewing the final invoice for the project and anticipates an overall project savings of approximately $100, 000. Wastewater - Engineering and Design Phase During the June 14, 2005 City Council Meeting, Council approved awarding professional engineering services to Brown & Caldwell (B&C)consulting engineers for design services related to the renovation of the City's 4.5 million gallon per day wastewater treatment facility. Council further authorized staff to negotiate a fee for this service with B& C not to exceed the budgeted amount of 840, 700. The contract for this service was executed in November for the not-to- exceed amount of 769, 139. 70 for an initial savings of $71, 560.30 from the approved not-to- exceed amount. ( note: staff does anticipate increases in the design cost due to additional engineering requirements resulting from the possibility of potential failures with equipment not originally forecast for replacement. This will be brought before Council for approval as a change order at a later date). Staff anticipates fmal design plans and specifications for this project by mid-June. Wastewater - WWTP Construction Renovations Although fmal design plans are due to be submitted later this month, the construction phase of the project will likely be placed on hold until such time as the facility's permitting issues are resolved. The facility' s operating permit is being held at this time by the FDEP pending the outcome of an Administrative Law Hearing resulting from a complaint ftIed by a resident south of the treatment facility related to stonnwater flooding in April 2005. The FDEP indicated that they will not issue a construction permit for this work until this issue is resolved. Staff anticipates a resolution to this