Fort Walton Beach Council agenda — 12-24-2010 Regular — reading text

design treatment capacity was applied for concentrate disposal for facilities that have an existing deep injection well, as they were assumed to be able to construct an additional deep injection well for RO concentrate disposal. All other facilities included a $ 3. 10 per gallon capital cost for a brine concentrator, as these facilities were assumed to not have access to a deep injection well. Lastly, the estimated increase in annual operating costs was calculated as follows: 1. 00 per 1, 000 -gallons treated for AWT and MF /RO treatment, and $ 3. 00 per 1, 000 gallons for facilities that must treat RO concentrate with a brine concentrator. Applying the " dollar" per gallon unit capital costs to the FDEP database provided a lump sum capital expenditure for the state of $24.4 to $ 50. 7 billion dollars. This cost was converted to an annual debt payment over an Carollo Engineers 9 Packet Pg. 1' 18  14.1. c assumed 30 years with 5% interest, which amounts $ 1. 6 to $ 3. 3 billion dollars plus an additional 0. 4 to $ 1. 3 billion dollars per year in increased operating costs. Much of the increase in operating costs can be attributed to power consumption. We anticipate that the addition of these facilities will increase overall power demand by almost 26 million megawatt- hours /year. The estimated increase in connected electrical load requires about 5 percent of the total power generation capacity in Florida. Moreover, based on data published by the Department of Energy on CO2 emissions by power plants, the additional power consumption will increase CO2 emissions in Florida by over 17. 4 million tons per year. These costs would be passed along to customers through increased wastewater rates. To estimate the increase in rates, facility upgrade costs and population information were used to calculate the average monthly cost per household. On average, rates would increase by an average of $673 to 726 per year per household. Sample of Utilities A sampling of utilities was conducted to support the general effort of analyzing the cost impacts to all of the Florida utilities described in the " Big Picture" approach. These utilities have based their estimated capital costs on various technical alternatives to meet the NNC rule that range from the addition of RO, to implementing 100% reuse via infrastructure improvements, to deep well injection of effluent for aquifer recharge. The utilities sampled have wastewater treatment facilities that range in size from 6 to 42 mgd, and are located in various areas of the state. Each utility reported their present average monthly residential customer wastewater charge and a preliminary estimate; of the anticipated increase in rates to meet the proposed NNC. These cCL percentages were translated to approximate rate increases. Table 4 summarizes the results of this analysis. The average rate increase reported across these 8 utilities ($ 618 /yr) compares well with v the independent conceptual statewide estimate prepared by the independent engineer z 673 /month to $ 726 /month). _ 4) E s ca Q Carollo Engineers 10 Packet Pg. 119  14.1. c Table 4 Summary of Estimated Capital Costs and Increases in Sewer Rates for Eight Florida Utilities to Construct Facilities to Meet Proposed Numeric Nutrient Criteria. Capital Cost Yearly Sewer Rate Increase per Household STATE OF FLORIDA' 24,400,000, 000- 673 -$726 0002 50, 700, 000, Bay County 429000, 000 684. 44 Broward County 4251000, 000 793. 32 Destin Water 3450001000 581. 16 Escambia County 27550001000 590. 88 Hollywood 37090001000 995. 88 Jacksonville 2, 0009000, 000 815. 04 City3 Cross 5, 8005000 336. 48 Walton3 South 1690005000 147. 00 Notes: 1. Estimated average costs for the State of Florida including annual O &M expenses and are shown for comparative purposes. 2. The low end of the range provides the probable opinion of cost assuming only plants with surface water discharges will be required to meet numeric nutrient criteria while the high end of the range assume that all plants will need to meet numeric nutrient criteria. 3. Assumes 2. 5 persons per connection and 150 gpcd. CONCLUSIONS Implementation of the proposed numeric nutrient criteria will initiate widespread and dramatic changes in the way Florida wastewater utilities treat and reuse reclaimed water. The necessary changes will likely require decades to fully implement. The major impacts expected for Florida consumers include the following: 1. Wastewater utility rates can be expected to at least double for those utilities required to meet the proposed NNC criteria. 2. The total municipal wastewater treatment cost to the people of the State of Florida will range from $47. 6 to $ 98. 7 billion dollars over the next 30 years. The actual cost within this anticipated range will depend upon how many utilities would be required -- besides those discharging directly to surface water streams -- to meet these criteria. 3. Energy requirements for treatment could increase by almost 26 million megawatt- hours /year. 4. Emission of CO2 and other greenhouse gases could increase by over 17. 4 million tons per year of CO2. Carollo Engineers 11 Packet Pg. 12t  14.2 City Council of Fort Walton Beach ENGINEERING SERVICES MEMORANDUM To: Robert T. Mearns, City Manager From: Michael Beedie, City Engineer Date: December 14, 2010 Subject: Code; Enforcement Settlement at 651 Powell Drive 1. BACKGROUND: 1. 1. On Thanksgiving weekend of 2007, a house fire destroyed a majority of the single family residence at 651 Powell Drive leaving it uninhabitable. 1. 2. On June 27, 2008, a courtesy notice was sent to the property notifying the owner of the Code violations and desired corrections. 1. 3. On February 11, 2009, the Code Enforcement Board issued an Order I to correct the violations, including an administrative fee of $325. 00 and a compliance date of March 13, 2009. 1. 4. On April 8, 2009, the Code Enforcement Board issued an Order II imposing another administrative fee of $325. 00 and a fine in the amount of $250.00 per day beginning on the required compliance date of March 13, 2009. 1. 5. On September 24, 2009, a letter of intent to foreclose was sent by Code Enforcement Attorney Joseph D. Lorenz on behalf of the City of Fort Walton Beach to the owner(s). 1. 6. On February 10, 2010, the City notified the owner' s representative that the fines were no longer accruing. However, a total of $650. 00 in administrative fees and $ 83, 250. 00 in fines had accrued. 1. 7. At the June 22, 20105 City Council meeting staff provided an update of the status of the property and determined that continual monitoring of it would be conducted to insure continued compliance with the Code. There was no action required by Council. 1. 8. At the present time, there are no active Code Enforcement cases for 651 Powell Drive. 2. DISCUSSION: 2. 1 The property owner's attorney, Mr. Douglas A. Hutcheson, requested via e -mail to be placed on the December 14, 2010, City Council agenda for discussion of the outstanding Code Enforcement fees and fines at 651 Powell Drive. 3. FINANCIAL INFORMATION: 3. 1. As stated at the June 22, 20101 City Council meeting, the existing fees and fines on the property located at 651 Powell Drive are $ 650. 00 for administrative fees and $ 83, 250 for assessed fines. Packet Pg. 121  14.2 City Council of Fort Walton Beach ENGINEERING SERVICES MEMORANDUM To: Robert T. Mearns, City Manager From: Michael Beedie, City Engineer Date: December 14, 2010 Subject: Code Enforcement Settlement at 651 Powell Drive 4. RECOMMENDATION: 4. 1. Staff recommends that Chapter 1. 05. 08 of the City Code, Code Enforcement Order Mitigation Schedule, be followed: Mitigation Schedule. A schedule of suggested mitigation percentages, as approved by the City Council and amended by resolution if needed, that shall be considered during review of an application for release of an order imposing a fine or release of lien, and that may ensure an equitable, expeditious, and effective method of gaining compliance with the code. The following is the city' s suggested mitigation percentage schedule: Fine Amount % of Fine Amount to be Paid 0 to $ 20, 000 20% of