Fort Walton Beach Council agenda — 06-09-09 regular — reading text

Pro -Forma for Utilities Fund Budget Projected FY 2008 -09 FY 2009 -10 FY 2010 -11 FY 2011 -12 FY 2012 -13 OPERATING REVENUES Water Service Fees - Residential 1, 687, 500 1, 569, 004 1, 616, 074 1, 664, 556 1, 714, 493 Water Service Fees - Commercial 882, 000 805, 773 829, 946 854, 844 880, 489 Sewer Service Fees - Residential 3, 115, 500 2, 929, 959 3, 017, 858 3, 108, 394 3, 201, 646 Sewer Service Fees - Commercial 1, 176, 000 1, 096, 390 1, 129, 282 1, 163, 160 1, 198, 055 Connection Fees & Hydrant Service 127, 200 127,200 127, 200 127,200 127, 200 Interest Income 250, 000 220,000 220, 000 230, 000 250, 000 Interest Income - Bond 120, 000 120, 000 80, 000 40,000 30, 000 TOTAL OPERATING REVENUES 7, 358, 200 6, 868, 326 7, 020, 360 7, 188, 154 7, 401, 883 OPERATING EXPENSES Personal Services (assumes 10% annual increase) 2, 465,417 2, 358,430 2, 496,626 2, 746, 289 3, 020, 917 Operating (assumes 3% annual increase) 1, 567, 511 1, 278, 402 1, 134, 948 1, 168, 996 1, 204, 066 WWTP Expense - Okaloosa County 1, 036, 360 2, 175,679 2, 256, 609 2, 340, 548 TOTAL OPERATING EXPENSES 4, 032, 928 4, 673, 192 5, 807, 253 6, 171, 894 6, 565, 531 OPERATING INCOME ( LOSS) 3, 325, 272 2, 195, 134 1, 213, 107 1, 016, 260 836, 352 Debt Coverage Ratio ( 1. 25 %) 6. 12 4. 19 2.43 2. 12 1. 78 NON -OPERATING REVENUES ( EXPENSES) Service Charges & Penalties 115, 000 115, 000 115, 000 115, 000 115, 000 Rental & Leases 14, 325 14, 755 15, 198 15, 654 16, 124 Special Assessments 1, 216 1, 216 1, 216 1, 216 1, 216 Gain ( Loss) on Disposal of Fixed Assets 1, 500 1, 500 1, 500 1, 500 1, 500 Other Revenue 10, 000 10, 000 10, 000 10, 000 10, 000 Interest expense 515,477) 496, 078) 472, 539) 451, 671) 442, 559) Grants & aid 398 398 398 398 398 Amortization 27, 571) 27, 571) 27, 571) 27, 571) 27, 571) Decommissioning 275,000) Depreciation 1, 049, 138) 1, 041, 597) 906, 566) 908, 154) 909, 741) TOTAL NON -OPERATING REVENUES EXPENSES) 1, 449,747) ( 1, 697, 377) 1. 9R:1_.11941 11 9414 RM 11 R' A ' A1 INCOME ( LOSS) BEFORE OPERATING TRANSFERS 1, 875,525 497,497, 757757 50, 258) 227, 367) ( 399, 281) Contributed Capital - Impact Fees 85,85, 000000 85, 000 85, 000 85,000 85,000 Transfers In 40,000 40, 000 40, 000 40,000 40,000 Transfer Out 1,1, 891,891, 000)000) 1,1, 474,474, 055)055) 1, 474,055) 1, 474,055) ( 1, 474, 055) TOTAL CONTRIBUTIONS AND TRANSFERS ( 1, 766,000) ( 1, 349, 055) ( 1, 349,055) ( 1, 3491055) ( 1, 349, 055) 24. 0% 19. 6% 19. 2% 18. 8% 18. 2% CHANGE IN NET ASSETS 109, 525 ( 851, 298) ( 1, 399, 313) ( 1, 576,422) ( 1, 748,336) NET ASSETS - BEGINNING OF YEAR $ 26, 536, 660 $ 26, 646, 185 $ 25,794, 887 $ 24, 395, 574 $ 22, 819, 152 NET ASSETS - END OF YEAR $ 26, 646, 185 $ 25,794, 887 $ 24, 395, 574 $ 22, 819, 152 $ 21, 070, 816 U:\ Finance \WWTP \Proforma Final 3/ 20/2009 8: 36 PM  WASTEWATER SERVICE INTERLOCAL AGREEMENT THIS WASTEWATER SERVICE INTERLOCAL AGREEMENT ( "Agreement") is made and entered into this day of , 2009, by and between OKALOOSA COUNTY, a political subdivision of the State of Florida ( " the County "), whose mailing address is 1804 Lewis Turner Boulevard, Suite 100, Ft. Walton Beach, Florida 32547 and the CITY OF FORT WALTON BEACH, a municipal corporation organized under the laws of the State of Florida ( "the City "), whose mailing address is 107 SW Miracle Strip Parkway, Florida 32548. WHEREAS, the City provides water, wastewater and reclaimed water services in its service area in Okaloosa County, Florida, as identified in Appendix " A" ( "City Service Area "); and WHEREAS, the County is constructing a 10 million gallon per day (` MGD ") Arbennie Pritchett Water Reclamation Facility and effluent disposal facility ( collectively, the " APWRF ") to receive and treat wastewater collected from areas currently served by the Okaloosa County Water and Sewer Department ( "County Service Area "); and WHEREAS, the APWRF is located on Eglin Air Force Base property at 250 WS Roberts Blvd., Fort Walton Beach, FL; and WHEREAS, the City currently owns and operates a 4. 50 MGD wastewater treatment plant and effluent disposal system, located on City -owned property at 1564 Percy L. Coleman Road, Fort Walton Beach, FL, a collection system, and reclaimed water system within the City Service Area; and WHEREAS, the City and the County acknowledge a responsibility to provide wastewater services to their respective service areas as efficiently as possible; and WHEREAS, the City and the County have negotiated a method for the County to provide wastewater treatment and disposal services and reclaimed water to existing and future customers within the City and County Service Areas; and WHEREAS, the current population and wastewater flow projections show demand for service within the City Service Area that can be accommodated by the APWRF; and WHEREAS, the Countypresently has available capacity and expansion capabilities at the APWRF that can be used to serve the immediate and foreseeable future demand in the City Service Area; and WHEREAS, the City Council has determined it to be in the best interest of the City for the County to provide wastewater treatment and disposal services and reclaimed water within the City Service Area; and 1-  WHEREAS, subject to the terms and conditions set forth below, the County desires to provide wastewater treatment and disposal services and reclaimed water to the City Service Area and the City desires to accept the wastewater treatment and disposal services and reclaimed water provided by the County. NOW, THEREFORE, in consideration of the foregoing and the mutual obligations set forth below, the parties, intending to be legally bound, agree as follows: SECTION 1. RECITALS. The recitals set forth above are true and accurate and are incorporated in this Agreement herein. SECTION 2. APPENDICES. The following Appendices are attached and incorporated by reference. Appendix A - City Service Area Map Appendix B - City Tertiary Treatment System Appendix C - List of Displaced City Employees and Positions Appendix D - Okaloosa County Rate Scenarios for Proposed Four Year Rate Plan Appendix E - City & County Population Projection from Comprehensive Plans Appendix F - Executive Summary of APWRF Specifications Appendix G - City & County Monthly and Annual Billing Cycles Appendix H - Current Inter -Utility Emergency Water Rate Schedule SECTION 3. EFFECTIVE DATE AND TERM OF AGREEMENT. This Agreement shall be effective on the date signed by the last party and shall remain in effect for a period of thirty ( 30) years. This Agreement shall be automatically extended for up to two additional terms for a period of ten ( 10) years for each extension term. Such extensions shall automatically take effect unless the parties give notice of termination pursuant to the terms of termination in Section 13 below. SECTION 4. MONTHLY RATES FOR WASTEWATER TREATMENT AND DISPOSAL SERVICE. A) On a monthly basis, the County shall bill the City and the City shall pay for the wastewater treatment and disposal services provided under this Agreement at a rate equal to $ 2.46 per each1, 000 gallons of wastewater flow as measured by a magnetic flow meter located at the point of connection at the City's discharge point into the County's influent main into the APWRF ( the " Base Charge "). Additionally, the City shall pay to the County the Sewer Readiness To Serve Fee, for one thirty inch ( 30 ") raw wastewater connection, which shall be equal to $ 3750. 00 per month ( the " Readiness to Serve Fee"). 2-  B) Beginning March 1, 2011 and each March 1st thereafter that this Agreement is in effect, the Base Charge and the Readiness to Serve Fee shall increase by an amount equal to 3% annually. The County shall not require the City to pay surcharges for the provision of its service outside of the County's service area, which includes the entire City Service Area and any other service area