CITY OF DEERFIELD BEACH
CITY COMMISSION WORKSHOP MINUTES
Thursday, June 29, 2006 at 7:15 PM
PRESENT: Commissioner
Steve Gonot
Commissioner Sylvia Poitier
Commissioner Martin Popelsky
Vice Mayor Pam Militello
Mayor Capellini - absent
ALSO PRESENT: Ada
Graham-Johnson, Interim City Manager
Samantha Gillyard, Acting City
Clerk
ITEM 1 TAPE
1, COUNT 002
DISCUSSION
REGARDING THE WATER TREATMENT PROJECT
Carl Peter, Director
of Public Works and Environmental Services, stated that there have been several
recent changes in the Federal Law impacting water quality. The South Florida Water Management District
(SFWMD) is also changing their requirements and limitations. This change includes
the Governor’s decision to lower Lake Okeechobee, due to the dike conditions
effect to the water supply in South Florida.
He stated that Wayne Miller,
Chief Water Operator, and members of Camp Dresser and McKee, were in attendance
to address these regulations, and what steps the City would take to provide
water in the future.
Mr. Miller stated
that due to the continued expansion and construction at the treatment plants,
the City has not competed against other systems; if under construction,
competing is not allowed. He stated that
the City’s water quality is the best around and stood out during the last
hurricane. While others suffered, the
PWES team worked hard to maintain water service.
Mr. Miller referenced
the PowerPoint presentation created by the PWES department. He stated that under the Clean Water Act, the
Federal Government continues to enforce strict regulations relating to the
City’s source water. Adhering to these regulations has made it
very difficult to treat the water; therefore, continually advancing technology
is required.
Secondly, due to the
growing population and the SFMWD’s restoration of the Everglades, water is
becoming scarce. He stated that cheap
water would no longer be available.
Thirdly, the original plant was built in 1960 and the equipment needs to
be completely overhauled, which is not cost effective; thus, another avenue
needs to be explored.
Mr. Miller stated
that other options include installing a new well field, building an additional
plant, and remodeling the east plant, as it is no longer effective as a
treatment facility; these factors are driving the costs.
Continuing, Mr. Miller stated the SFWMD controls the
water used by the City. In 2004, the
City renewed the water permit. Since the
City is growing, the SFWMD allocated an increase over the previous permit. Also, the Everglades Restoration Act was
passed and new parameters were implemented, realizing that only a certain
amount of water would be limited to each municipality from the regional system;
Deerfield Beach was the first City this was applied to SFWMD supplied
additional water however, there was a caveat involved. Within three (3) years, an alternative source
had to be found for the additional water, because the SFWMD would take back the
additional allocation.
In response to Vice
Mayor Militello’s question, Mr. Miller replied that the SFWMD would take the
water back in September 2007.
Commissioner Popelsky
asked if the additional source meant drilling additional wells.
Mr. Miller stated
that drilling wells would be feasible, as existing treatment could still be
utilized. Unfortunately, the City cannot
pull additional water from the Biscayne Aquifer;
for the entire district, it is referred to as the Surficical Aquifer, which is
between 20 - 150 feet below.
Additionally, he stated that the Floridan Aquifer is at a further depth
and is brackish water, which requires different treatment. He stated that this water might be utilized
to offset the allocation, along with any needed for the future.
Commissioner Popelsky
asked if Mr. Miller has a system that he can treat the brackish water for use.
Mr. Miller replied that that is another issue. When the changes are made, there will be
three (3) different types of treatment processes at the West Water Treatment
Plant. Each process will undergo various
treatments, pressures and chemicals, and will go into a common blending
well. This blending well is also where
the operatives treat the water for public consumption.
In response to
Commissioner Poitier’s question, Mr. Miller replied that there are two (2)
existing well fields, one (1) is the original well field, which was installed
over a period of time throughout the 60's and 70's, which is along 2nd
Avenue, one (1) block east of Martin Luther King, Jr. Boulevard.
Continuing, Mr.
Miller stated that because Deerfield Beach is a coastal city, and there is a
concern for salt water intrusion. The
City is limited to how much water can be pulled from the well field, as
hydrostatic pressure must be maintained.
Further, if too much water is drained, there must be something to fill
the vacuum, which can be achieved through natural recharge, freshwater, or
brackish water entering. He stated that
reports are sent to the District to assure proper maintenance.
Mr. Miller stated
that the second well field was built in the late 70's, early 80's, and runs
along railway corridor between Goolsby up to SW 10th Street. The proposed new well field will be located
along SW 10th Street, on the west side.
He stated that the location is being coordinated with Vince Kendrick,
Director of Parks and Recreation, as both have an interest in the
location.
Additionally, Mr.
Miller stated that he is involved in the Regional Regulatory departments, such
as SFWMD, as they control the water. He
stated if not involved, the City is vulnerable to their decisions.
Commissioner Poitier
asked if water could be used from canals.
Mr. Miller replied
no. However, the District states that it
is important to take advantage of wastewater by product, by returning it to the
canal system. The County is trying to
establish a policy in South Florida where there is no longer a one-time use of
water. Either the water has to be
recovered through reuse on wastewater or other alternatives. The project that is being developed at the RO
(reverse osmosis) plant, will utilize reject water from the nano, up to a 50%
blend and recycle through the RO and blend it with Floridan water. Then, the City can receive credit for
re-cleaning, due to re-cleaning a certain percentage of waste. Every city in Miami-Dade and Broward County
is facing the same battle; an innovative approach is necessary to reuse the
water. Wastewater plants need to be
polished, if placement is in the secondary canal system, it must also be
polished. Also, if being utilized for irrigation,
the regulations are not as stringent.
Commissioner Popelsky
asked what population the projections are based on.
Mr. Miller replied
that Planning and Growth Management supplied the figures however, there are two
(2) figures that the City must focus on.
There is a comprehensive plan that deals with the total population. For water, Public Works only deals with
people physically connected to the City; thus, a population figure of 52,000 is
fairly stable.
Commissioner Popelsky
asked if the County is still servicing the individuals in the annexed area.
Mr. Miller replied
yes.
Commissioner Gonot
stated that those residents would probably remain with the County for a while.
Commissioner Popelsky
stated that since the City is considering additional wells, there must be
consideration for growth.
Mr. Miller stated
that everything that is being set up is based on 20 to 25 years from now.
Commissioner Poitier
stated that she has never seen a City annex an area and the area be serviced by
the County.
Mr. Miller stated
that the only way to service the annexed residents would be to acquire system
2, on 48th Street.
In response to Vice
Mayor Militello’s question, Mr. Miller stated that he is unsure whether the
City would have to take over the service of annexed residents.
Mr. Miller stated
that there has been discussion of the County overtaking the smaller cities;
however, he does think that will be possible, since the County receives revenue
from providing raw water.
Commissioner Poitier
stated that the water from Stanley Terrace smells like untreated well water.
Mr. Miller stated
that there could be several reasons for this.
He stated that the volume of water being utilized is less than what was
anticipated. If enough water does not
run through the lines, there could be settling of calcium carbonate or lime
softening in the old systems. Lime
softening is a thin crust, brownish in color that forms around the pipes. When the lines are flushed, everything is
agitated and the water might be brown or have an odor. He also provided other reasons for the water
to be in this condition.
In response to
Commissioner Poitier’s question, Mr. Miller stated that he would have personnel
go to Stanley Terrace and test the water going to the building. If the water to the building is fine, then it
is an internal problem. If the water to
the building has a problem, then that is a distribution issue which the City
must address.
Continuing, Mr.
Miller referred to the PowerPoint presentation.
He stated that most of the requirements being proposed is tied to
limiting the water the City has available for recharge. If the City experienced a drought, when pulling
water out of the ground, the wells recharge slower and the amount of volume
becomes less, which could lead to damaging the well. The SFWMD will release more water to fill up
secondary canals and other canals, which helps recharge the well fields. Unfortunately, that will not be available;
thus, an alternative water supply is needed.
The additional aquifer that the City is seeking would not be impacted by
those conditions.
Vice Mayor Militello
asked what time frame would be needed to complete this.
Mr. Miller replied
that the City is approximately 99% complete on the design and have hopes of
beginning the bid on the RO process next month.
The well fields will be complete maybe January 2007.
Commissioner Poitier
asked if this plant was a budgeted item.
Commissioner Popelsky
asked if the funds that are allocated in the budget are based on the upcoming
years.
Mr. Peter stated that
it is shown in the capital improvement plan each year, but then allocated as
required.
Additionally, Mr.
Peter stated that in the capital improvement plan, it shows that the City is
expected to receive funding through a State Revolving Fund or Enterprise Fund.
Mr. Miller stated
that these projects have been in the Capital Improvement Plan for a while and
some were shown last year. It
illustrates that by a certain year, the City will have to find funding for the
project.
Commissioner Popelsky
made reference to various sources that could fund the plant and wells. He stated that the plant might cost $10
million.
Mr. Miller replied
that the plant is priced at $9 million.
The well field is approximately $2 million. He stated that this is a $12 million bond
issue that will have to be funded.
Referring to the
PowerPoint presentation
Mr. Miller stated
that the City is running close to its permitted uses, in terms of demand versus
production. Even if none of the issues
surfaced, the City would have to find additional water. Since the only place the water can be
obtained is the Floridan aquifer, a plant must be built to treat that type of
water, as it is very brackish.
Commissioner Popelsky
asked if Mr. Miller had any location for the plant.
Mr. Miller replied
that it would be located south of the current membrane building, where there is
a retention area that would have to be moved.
He stated that although it is a tight fit, it would be sufficient. Right now, the City is allotted 12.6 to pull
from the ground and currently averages 12.1.
By 2007, the District will reduce the City to 12.2; nonetheless, the
City’s projections do not increase much, but because of the reduction, we are
exceeding what is allowed to pull from the ground.
Continuing, Mr.
Miller stated that the City of Deerfield Beach has been very proactive above
other cities in Broward County. He
further stated that he has a very good working relationship with the District,
and if they are aware that the plant is under construction, they will allow the
City to have water until the plant is complete.
Then a time frame would be provided for completion of the plant.
Vice Mayor Militello
stated that there should be conservation efforts in place, with. regard to
sprinkling
Mr. Miller stated
that there has been a 5% reduction in City sprinkling.
Vice Mayor Militello
stated that the City should be proactive in helping the environment and
conserve water.
Commissioner Popelsky
asked if homeowner associations and golf courses use lake water.
Mr. Peter stated that
they draw from canals now.
Commissioner Popelsky
asked if there are any codes that address water conservation when something new
is being built.
Gerald Ferguson,
Director of Planning and Growth Management, replied that he is not aware of
anything that addresses water conservation.
Discussion pursued
regarding water conservation for homeowner associations and golf courses.
Vice Mayor Militello
stated that a water conservation method should be implemented now and people
will not find it a burden to water their lawn after 7 PM.
Mr. Peter stated that
there is an Ordinance in place for drought conditions, but should be revised so
that it is year round.
Referring to the
PowerPoint presentation
Mr. Miller referenced
the slide named Historical Biscayne Well Demand, which illustrates the average
withdrawal based on current permit and the average withdrawal based on the new
permit. He stated that at least six (6)
months out of the year, the City is close to or exceeding what is allowed.
Regional Water
Supply Issues – Mr. Miller stated
that the SFWMD would lower the level that the lakes are kept at, which means
there is less water to be sent out during a drought condition.
Continuing, he stated
that the governing board adapted policies last month to control the water, and
urged cities to drought protect themselves.
City Water
Facilities Planned Improvements –
Mr. Miller stated that the planned improvements will take place at the West
site. The deep well was approved at the
last Commission Meeting; the RO Plant will be addressed around August.
Proposed Well
Field Improvements – Mr. Miller
stated that the new well field will come later and it is a mixed well
field. There will be two (2) Biscayne
wells being utilized because the four (4) existing wells have been used for
over 30 years and are almost obsolete.
Additionally, much money is spent in maintaining them. He stated that by installing two (2)
additional wells, the wells can be rehabilitated and regain the capacity that
they originally had.
Commissioner Popelsky
asked if there is a return on selling bottled water.
Mr. Peter stated that
it does not add up and is mostly for public relations.
Mr. Miller stated
that Publix’s bottled water comes from the City. He stated that they polish it to their
specifications and they moved to Deerfield Beach because of the quality of
water.
Construction Cost
Escalation – Mr. Miller stated that
the cost of construction has increased over the past years.
Larry Adams, Camper
Dresser & McKee, stated that the predicted costs are premised on
construction costs escalating.
Forecasted
Five-Year Capital Expenditures – Mr.
Adams stated that essentially, these are the estimates of the projects that
have been identified, to include, but not limited to: Membrane Concentrate Pump
Station; Deep Injection Well; West WTP Expansion, etc.
Additionally, he
stated that the State Revolving Loan Program would finance the Membrane
Concentrate Pump Station and the Deep Injection Well.
Further, he stated
that an anticipated revenue bond would take care of the West WTP Expansion, the
well field, the well water main, the Floridan Well, the re-pump, and the
wastewater sewer improvements. He stated
that a revenue bond and connection fees would handle essentially 80% of the
projects.
Continuing, Mr. Adams
stated that there are miscellaneous capital projects that will be funded from
the net revenues of the water and sewer rates.
Projected Rate
Increases Needed through 2010 – Mr.
Adams stated that there is a need for a water and sewer rate increase of 7%
beginning in Fiscal Year 2007. He stated
that a single-family homeowner who uses 7,000 gallons per month would increase
from $45.12 to $48.28 per month. An
additional rate increase is forecasted for 2008, which is identified as a 7%
overall increase to water and sewer rates.
By the end of 2008, it will be a charge of $51.66 for 7,000 gallons.
Comparison of
Water & Sewer Rates – Mr. Adams
referenced the table, provided by Broward County, and stated that Deerfield
Beach is at the top of the bottom third for water and sewer rates. The increases that have been identified will
place the City between Tamarac and Dania Beach.
He stated that every city in Broward County will have to take action and
predicts that all the rates will be increasing in the near future.
Commissioner Gonot
asked what would the impact of increasing rates at 3% incrementally be.
Mr. Adams stated that
they have a rate model and can experiment with the figures. Further, he stated that there would be a 15%
rate increase overall, but there are options as to how it is achieved.
Continuing, Mr. Adams
stated that the City has a rate stabilization fund that is in force and the
projections show the fund being depleted in 2008, but can review the model and
see where the shortfalls may be.
Additionally, Mr.
Adams stated that Century Village was increased because of the acquisition of
the sewer system in 2004, but the last rate increase was 3.5 years ago. He stated that the City is doing a good job
of funding the improvements.
Mr. Miller stated
that now is the time to address the situation, with respect to a varying rate
plan.
In response to
Commissioner Poitier’s question, Mr. Adams replied that the rate is based on
volume charges (inverted block rate).
After 6,000 gallons, the charge increases.
Dennis Girisgen, City
Engineer, stated that the charges go from $1.70 to $1.90, then $2.21 after
12,000 gallons.
Commissioner Popelsky
asked if the charges would be kept similar to the industry.
Mr. Adams replied
that if the 7% increase is placed in volume charges, then the volume charges
would increase approximately 12% and the base facility charge would remain the
same. Additionally, he stated that the
current rate structure incurs during conservation, because the larger users pay
more per 1,000 gallons.
In response to
Commissioner Popelsky’s question, Mr. Adams replied that the rate volume for
condominiums are similar to single family homes, but the base rate is lower, as
the average demand is lower than a single family residential.
Mr. Adams stated that
the City would needs to move forward with the bond issue. Since these projects have not been out for
bid, the City needs to find a way to protect itself in this environment, due to
the increased construction costs.
Vice Mayor Militello
stated that the infrastructure needs to be taken care of and asked Mr. Adams
exactly what is needed, without shaving the cost now and then requesting
additional funds later on. She said that
this would hurt the City in the long run.
Mr. Adams stated that
there could be a possibility of grant money being available for part of the
project from the SFWMD, which will be pursued.
If this works out, it will reduce the cost for the City.
Commissioner Gonot
stated that he does not mind smoothing the increases along over five (5) years
and paying on the high side, and hopefully, all the increases are not
needed. Additionally, he stated that if
the cost of service were running under the rate of inflation, people would be
better able to accept the increase versus a 7% increase.
Commissioner Popelsky
suggested estimating the building costs during the years that the projects will
be constructed, so that true value is established.
In response to
Commissioner Poitier’s question, Mr. Miller stated that the City has grant
writers, but he has been working with the District. When it is time to write the grant, he will
use the assistance of the Grant Writer.
Further, he stated that this is the first time the District has offered
grants, as they realize their policies cause cities to face a financial impact.
Mr. Adams stated that
CDM would assist the City in pursuing a grant.
Commissioner Poitier
stated that once this avenue is encroached upon, the City would know how much
is needed for a revenue bond.
Vice Mayor Militello
asked how much the City could possibly receive through the grant.
Mr. Miller replied
that the grant would give 40% of the project, up to $1 million.
Mr. Adams stated that
the City can ask the legislature for special consideration, which CDM will
assist with as well.
Vice Mayor Militello
asked if there are grants for cities trying to implement conservation laws.
Mr. Adams stated that
a grant was provided in the amount of $25,000, which was related to recycling
the nanofiltration concentrate.
Commissioner Poitier
asked what actions will be taken between now and September 30, 2006.
Mr. Wayne stated that
he would finish the design with the consulting engineers on the plant, and then
place for bid. Once the figures are
received, the Commission will be informed.
ADJOURNMENT:
There being no
further business, the meeting was adjourned at 8:30 PM.
___________________________________
ALBERT
R. CAPELLINI, P.E., MAYOR
ATTEST:
______________________________________
SAMANTHA GILLYARD, ACTING CITY CLERK
