City Commission Workshop Meeting

City Hall City of Eustis, Florida 10 North Grove Street Post Office Drawer 68 Eustis, FL 32727-0068 Meeting Minutes- Final* City Commission Workshop Tuesday, October 23, 2018 5:00PM City Hall CALL TO ORDER: Mayor Morin - 5:01 p.m. ACKNOWLEDGEMENT OF QUORUM AND PROPER NOTICE Present: 5- Marie Aliberti; Linda Bob; Carla Gnann-Thompson; Michael L. Holland; and Robert Morin Also in attendance: Umatilla Mayor Mary Johnson; Umatilla City Councilmembers Laura Wright, Brian Butler, Eric Olson, Scott Purvis, and Katherine Adams; Umatilla City Manager Scott Blankenship and Umatilla City Clerk Karen Howard . I. Workshop Item 18-0267 Joint Workshop of the City of Eustis and the City of Umatilla regarding joint sewer line project Scott Blankenship, Umatilla City Manager, explained the issues involving Umatilla's wastewater treatment system and the suggestion that Umatilla contract with the City of Eustis for wastewater treatment. He provided a history of the system construction, expansion in the 1980's, limited capacity for growth and no redundancy as required by state statute. He then reviewed the various alternatives as follows: 1) Alternative 1 - expansion of wastewater treatment plant with an estimated cost of $12,200,000; and 2) Alternative 2- interconnect with City of Eustis with an estimated cost of $5,900,000. Ron Neibert, Eustis City Manager, commented on the City's available capacity. He noted that, if approved, the agreement would require the City to begin planning for its next expansion based on DEP regulations. He explained the City has sufficient physical capacity to cover the recent Florida Foods agreement, the agreement with Umatilla, and a 400 to 500 unit subdivision that may be planned for the area. He further explained how the existing plant could be expanded. He then reviewed the basics of the agreement as follows: 1) Eustis will upgrade the Umatilla line at the City Limits to support economic development along Route 19; 2) Eustis will assume ownership and maintenance of the line from the City Limits; 3) Capital costs, except for upsizing, will be paid by Umatilla; 4) Eustis will generate approximately $310,000 per year in new water/sewer revenue, which will allow the City to expand the plant; and 5) Umatilla will pay pro-rated impact fees on new units over 150,000 gallons per day. II. Commission Discussion Eustis Commissioner Gnann- Thompson asked the reason for the route with Michael Scullion, BESH, explaining they are following SR 19 to allow for future development and with Mr. Neibert explaining they are following the existing right-of-way otherwise they would have to pay for easements. Umatilla Councilmember Scott Purvis agreed with the reasoning for the route. Eustis Mayor Morin noted that part of the area is unincorporated and questioned whether or not there would be any objections from Lake County with Mr. Neibert responding it will be along a state road, not county. City of Eustis, Florida Page 1 Printed on 111912018 City Commission Workshop Meeting Minutes - Final October 23, 2018 Mayor Morin then questioned what are the benefits to Eustis with Mr Neibert responding the City will receive an additional $310,000 in new revenue each year and a sewer line along SR 19 where there is property both within the City Limits and within the JPA which will allow the City to provide them sewer service and, hopefully, spur some economic growth. Mr Neibert indicated that it is a 30 year agreement and with the anticipated improvements to the Eustis plant they will be able to handle any Eustis growth as well as Umatilla's. Mayor Morin asked if the revenues can be used for other purposes with Mr Neibert explaining that those funds must be allocated to water and sewer He cited the recent increase in the amount of transfer to the General Fund to cover administrative costs generated by the Water/Sewer Fund. Mayor Morin commented on how the funds will be used to enhance the system and protect the environment. He confirmed where there is unincorporated properties and questioned whether or not water lines could also be run with Mr Neibert explaining Umatilla has their own consumptive use permit. Mr Blankenship explained that once staff receives direction from the Council they want to proceed as quickly as possible. Mr Scullion stated they should begin design in February with construction to begin by the end of 2019. Mr Neibert estimated the project would require two years or less. Umatilla Councilmember Wright stated she did have questions but would prefer to discuss them in their own meeting. She added that it is a good opportunity for both cities and thanked the Eustis Commission for considering the agreement. Umatilla Councilmember Adams questioned Eustis' capacity with Mr Neibert stating that the City's plant has more than sufficient capacity to handle the obligation but the City is already planning an additional expansion. Councilmember Wright further questioned Eustis' ability to meet Umatilla's needs as well as its own needs with Mr Neibert stating that Eustis is signing an agreement to provide up to 300,000 gallons per day capacity and Eustis will meet that obligation. Mr Blankenship noted that the 300,000 is twice Umatilla's current requirement. He emphasized that they do not want to do anything that will put either City at risk. He noted Umatilla City Attorney Kevin Stone has been at all oftheir meetings and stated both he and Umatilla's engineers were involved in drafting the agreement. He explained that the agreement protects Umatilla's services for 30 to 40 years out and can be amended at will. Mr Neibert explained what DEP will look at in reviewing the expansion plans and stated what is contracted will more than handle future growth for Umatilla. He stated that, by the time Umatilla needs more capacity, Eustis' expansion will be online. He further explained that Eustis has sufficient existing capacity to cover the agreement plus another 400 unit subdivision. He concluded stating that the agreement works to both cities' advantage. Following further discussion, Umatilla Council President Wright asked the Umatilla Councilmembers to state their comments with Councilmember Olson stating it is a win/win situation for both cities. Mayor Morin asked for a consensus of the Eustis Commission to bring forward a formal agreement for consideration. The Eustis Commission discussed the benefit to both cities and the benefit to the region in seeing the cities work together City of Eustis, Florida Page2 Printed on 111912018 City Commission Workshop Meeting Minutes - Final October 23, 2018 Mr Blankenship reported that both city attorneys are in agreement that the contract is good for both cities. Counci/member Johnson stated that part of the fear is having to rely on another entity with Mr Neibert and Mr Blankenship responding that it is common for cities to join together to provide cost effective utilities and there are a number of other cities that rely on other agencies to provide some of their services. Umatilla Councilmember Butler asked if the agreement could include reclaimed water with Mr Blankenship stating that is not included at this time but that discussion could be held in the future to see if the cost is feasible . III. Public Input Rep. Jennifer Sullivan commented positively on the cities working together to resolve their problems. She stated she looks forward to being a part of their future conversations and what state funding could be included. She further commented on the need for them to look at the total cost, not just upfront costs. IV. Commission Direction Laura Wright, Council President, asked for the Umatilla Council's comments with Councilmember Purvis expressing support, Councilmember Adams expressing support for Umatilla having its own sewer plant, Councilmember Butler expressing support and noting the benefit to both cities and Counci/member Wright noting there are still some questions but concurring that it will be beneficial. CONSENSUS: It was a consensus of the Eustis City Commission for staff to bring forward a formal agreement for consideration. V. Adjournment-5:36p.m. City Clerk *These minutes reflect the actions taken and portions of the discussion during the meeting. To review the entire discussion concerning any agenda item, go to www.eustis.org and click on the video for the meeting in question. A DVD of the entire meeting or CD of the entire audio recording or verbatim transcript of the meeting can be obtained from the office of the City Clerk for a fee. City of Eustis, Florida Page3 Printed on 111912018