HomeMy WebLinkAboutDocumentation_Regular_Tab 5B_6/22/1989 •
VILLAGE OF ' E UESTA
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Post Office Box 3273 • 3s 7 Tequesta Drive
• Tequesta, Florida 33469-0273 • (407) 575-6200
FAX: (407) 575-6203
MEMQ RikI TIaLJM :
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TO: Village Council 2 '
FROM: Wendy K. Harrison, A inistrative. Asst. to the
Village Manager
DATE: June 16, 1989
SUBJECT: Ten Year Plan for Water Department
Please find attached two items: a Memorandum from Richard
Staudinger, Gee & Jenson, in regard to the meeting of June 9,
1989 of the Finance and Administration Committee, and the
Minutes of that meeting.
As noted in Gee & Jenson's Memorandum, staff analysis of
the original recommendations of the Committee resulted in a
recommendation of a plan modified to include Reverse Osmosis in
1994 instead of in 1996. This hybrid plan has been designated
Plan 2-M (Modified) . Mr. Staudinger will be present at the
Village Council meeting on June 22nd to present the details of
Plan 2-M.
As was discussed during the Committee Meeting, an
application is currently pending before the South Florida Water
Management District to increase the Village's withdrawal of raw
water. The response of SFWMD to this application will either
confirm Plan 2-M or force further revision. We expect to
receive the District's decision on the application in September,
and to thereafter bring an updated Ten Year Plan configuration
before the Village Council.
Also during the meeting of the Committee, the adequacy of
current rates charged to customers was questioned. To clarify
the situation, please find below a summary analysis of current
water revenues from sales:
Base rates charged to customers average
per thousand gallons $ .75
Consumption charged per thousand gallons $1.05
Total average charged per thousand gallons $1.80
Memorandum to Village Council
RE: Ten Year Plan
June 16, 1989
Page 2 -
As you can see, the base rate makes up a significant
portion of revenue from water sales. In the months analyzed,
base rates made up 42% of the revenue from sales. This ratio
varies depending on total sales. The average revenue per
thousand gallons compares to average cost per thousand gallons
of $.99 operating only, and $1.61 including operating and debt
service.
It seems that a brief discussion of our rate structure is
in order. Unlike public utilities or other companies which
operate on a Return-on-Assets basis, the Village's Water
Department is an enterprise fund and therefore operates on a
Debt Service Coverage basis. The Indenture Agreement for the
Village's 1985 Series Water Bonds specifies that the annual net
income (Operating Revenues minus Operating Expenses) must always
remain at at least 1.25 times the annual expenditures required
for Debt Service. This ratio drives the Village's water rates.
For FY 89 the ratio is estimated at 1.79; however, we are
estimating only a 1.36 ratio for FY 90 which is the reasoning
behind consideration for reviewing charges for water in
September of this year. I hope that this is helpful.
WKH/mk
Attachments
cc: Thomas G. Bradford, Village Manager
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GEE &JENSON
Eng'newt-ArchNecU-
Plannera,Inc.
June 15, 1989
Wendy Harrison
Village of Tequesta
357 Tequesta Drive
P.O. Box 3273
Tequesta, FL 33458
Re: 10 Year Water Plan And Workshop Meeting
With Finance and Administration Committee
Dear Wendy:
On Friday june 9, 1989 at the workshop meeting of the Finance &
Administration Committee of the Village Council of Tequesta, a
detailed discussion of the long term water supply and treatment
needs of the Tequesta service area took place. Four separate
scenarios geared toward meeting the present and future demand in
the service area for treated water were outlined. After much
discussion the Committee voted to recommend scenario number 2 ,
with the understanding that circumstances such as permitting
requirements and ground water shortages may push the Village .
toward scenario 4 .
- Scenario 2 can be summarized as follows:
Continue finished water purchases from Jupiter through the
contract term (2007) , expand the surface water plant (filters)
with three (3) additional production wells, then implement a
reverse osmosis system in 1996.
. Scenario 4 can be summarized as follows:
. Continue finished water purchases from Jupiter through the
contract term (2007) and do no more surface water plant
expansions. Implement a reverse osmosis system immediately.
The primary topic of discussion as the workshop cbncerned how
long Tequesta can continue to expand the surfical aquifer well
system and expand the filter treatment plant system. Lack of raw
water available from the surfical aquifer or mandated limitations •
:or restrictions on permitted withdrawals, or the cost of locating
. additional surfical wells in remote locations were all concerns
discussed at the .workshop that may require the Village to adopt a
modified 10 year plan somewhere between scenarios 2 and 4 .
One Harvard Circle • P O.Box 24600 • West Palm Beach,Florida 33416.4600 407/683-3301 • Telex 513472 G&J WPl3
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As anticipated by Committee members, as staff detailed the
• Capital Improvement Plan for the water department after the
workshop session, a modified version' of Scenario 2 was determined
to be necessary. Staff arrived at the modified scenario 2
primarily based on the very large cost associated with a third
surfical aquifer production well ($1.5 million) . • •
Therefore, the plap. to be presented to the Village• Council at the
meeting of June 22 , 1989 is a hybrid of plan 2 that implements a
• reverse osmosis system in 1994 instead of 1996. I will attend
. the Council meeting to present the proposed plan to Council and
• answer questions on the technical details of the plan as
requested by Mr. Bradford.
. Attached for distribution to the council members prior to the
meeting is a graph depicting demand and treatment' capacity for
plan 2M (modified) , a graph depicting volume (in millions of
gallons per day, MGD) of the treatment plant system by source of
supply and a table outlining the timing and cost of facilities
for the plan over•. the next ten years.
Very truly yours,
. . %--Jr4.AA-CA4 41 .41A.t04..A.."
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W. Richard Staudinger, P.E. 47-7
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89-037
cc: Tom Hall .
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GEE&JENSON Engineers,Archilecls,Planners,Inc. .
VILLAGE OF 7EOIESTA 10 YR WATER PLAN
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CAPITAL IMPROVEMENT PLAN 2 MODIFIED
SURFICIAL RID MROUND REM SER. COST 1M
YEAR WELLS WELLS RIO TREATMENT TREATMENT STORAGE PUMPS (9PM) $1,000s
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1990 124 1 RPM $364.0
1990 3.0 MSD MS57.0
1990 1200 $60.0
1991 425 (SIU) $139.0
1991 1.3 MAD (3 FILT.) 4413.0
1991 426,S RNM $330.5
1991 R/0 TEST 4100.0
1992 R/O ENE. $300.0
1993 R/0 1,2,3 11,960.0
1993 3.0 (DE9 4.0) $2,727.5
1994 3.0 (DES 4.0) 31,562.5
1996 2.0 MOD 4450.0
1996 2000 1100.0
TOTAL COST (1989 11 $9,062.5
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VILLAGE OF TEQUESTA
• .•• _�' -� Post Office Box 3273 • 357 Tequesta Drive
. .....No. Tequesta, Florida 33469-0273 • (407) 575-6200
n _ FAX: (407) 575-6203
M , i•
FINANCE & ADMINISTRATION
COMMITTEE MEETING
FRIDAY, JUNE 9 , 1989
I . CALL TO ORDER AND ROLL CALL
The Finance & Administration Committee of the Village Council held
a Committee Meeting on Friday, June 9 , 1989 , in the Village Hall ,
357 Tequesta Drive, Tequesta, Florida. The meeting was called to
order at 3 : 00 P.M. by Chairman Earl L. Collings . Finance &
Administration Committee members present were : Mayor Joseph N.
Capretta. Staff members present were : Bill C. Kascavelis , Finance
Director/Village Clerk; Thomas G. Bradford, Village Manager; Wendy
K. Harrison, Administrative Assistant to Village Manager; Tom Hall ,
Village Water Department. Also present was Richard Staudinger, of
Gee & Jenson Engineering firm.
II . APPROVAL OF. AGENDA
The Agenda was approved as submitted.
III . DISCUSSION OF A PROPOSED TEQUESTA TEN-YEAR WATER PLAN, Richard
Staudinger, P.E. , Gee & Jenson
Mr. Staudinger presented a letter dated June 6 , 1989 , with graphics
attached, of four options for a ten-year water plan generated by
Gee & Jenson. It was pointed out that the Village is presently
withdrawing more water than the 2 . 7gd maximum per day permitted.
Mr. Staudinger informed the Committee that a flagrant violation
could lead to legal action taken by the South Florida Water
Management District. Yet, the issue remains : the demand is greater
than the supply. An application has been submitted to the South
Florida Water Management District for increasing the Village 's
permitted withdrawal from the surficial aquifer. A response/permit
should be received from the South Florida Water Management District
by September, 1989 . Gee & Jenson submitted a cost analysis of
possible water sources and treatments over the next ten years . Of
the four alternatives presented by Gee & Jenson, the Committee
decided alternative #2 was perhaps the best solution. Alternative
#2 was : "Continue Jupiter water purchases through contract term,
expand surface water plant with new Wells 24, .25 and 26 , then
4
Finance & Administration Committee Meeting Minutes
June 9, 1989
Page 2
implement a reverse osmosis system in 1996 , " giving a better
cushion for capacity ahead of demand. Adopting alternative #2
would allow the water plan for the Village to be South Florida
driven, and if alternative #4 , which scheduled reverse osmosis in
1993-1994 , had to be adopted later in the plan, it could easily be
done .
Mayor Capretta pointed out that decision dates are needed to back
up this plan. He suggested a common-sense slide presentation
showing a stair-step, 15-minute ten-year plan be demonstrated to
the Council and the community
In summarizing the meeting, Chairman Collings listed the
conclusions as follows :
1 ) Stop expanding the Village ' s water service area;
2 ) Maximize the use of shallow wells into the surficial aquifer ;
3 ) Continue to explore options and technology for brine
disposal ;
4 ) Long-term planning for reverse osmosis ; and
5 ) Adopt Plan 2 with a firm decision to be made in September,
1989 , in light of South Florida Water Management District ' s
response .
IV. ANY OTHER MATTERS
No other matters were discussed.
V. ADJOURNMENT.
There being no other matters before the Committee, the meeting was
adjourned at 5 : 45 P.M.
Respectfully submitted,
Fran Bitters
Recording Secretary
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Date pr ved:
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ATTEST: /K7
arl L. Collings
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Chairman