9/8/1987 - Laserfiche WebLink

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BOOK 69 PAGE -307 CAMP DRESSER & McKEE INC. The county shall prepare a statement showing that the purchase or sale is in the public interest, including a summary of the purchaser's experience in water and sewer utility operation and a showing of financial ability to provide the service, whether the purchaser is the county or the entity purchasing the utility from the county. The first three items have been forwarded by the Bent Pine Uility Company to Indian River County for their review. The remaining items are addressed below. PHYSICAL CONDITION OF UTILITY FACILITY A draft valuation study was prepared on the Bent Pine Utility Company in August, 1987 and is attached. This study discusses the condition of the facilities based upon a physical inspection. Presently, the Bent Pine community is serviced by a 0.1 mgd Water Treatment Plant having a raw storage capacity of 25,000 gallons supplied by two wells with a combined capacity of 240 gpm. This system has been in operation since 1981. The distribution system consists of PVC piping ranging in diameter from 2 inches -to 12 inches, with 95.6 percent of the piping being of 6 inch or larger diameter. Existing water quality is discussed under Alternatives to the Purchase or Sale and Impact on Utility Customers. Wastewater is treated by a 0.0372 mgd Wastewater Treatment Plant. The treatment process is extended aeration, sludge digestion, settling, chlorination, and percolation/evaporation disposal of the effluent, with all tanks and chambers made of concrete. Wastewater from the community flows by gravity through 8 -inch diameter PVC pipe to one of the two lift stations. - s The valuation study of the utility found the physical condition of the water and wastewater facilities satisfactory considering the size and age of the system. However, unaccounted-for water for the Bent Pine Utility Company (BPUC) is high, ranging from 46.1 percent to 72.5 percent. Meter malfunctions, limited reliable current data for a seven-month period coupled with a lack of measurement for water quantity used in -flushing mains and wastewater treatment may contribute to the cause. Discussions with members of the BPUC have also referenced problems of unauthorized tapping into the water lines. A detailed study of the system would be advised to make a more accurate.projection of the apparent loss of water. Comparision of average daily flows of water out of the water system and into the wastewater system did not indicate any abnormal infiltration/inflow into the gravity wastewater system. REASONABLENESS OF THE PURCHASE OR SALES PRICE AND TERMS The terms of the purchase are a cash payment by the County of approximately $270,000 and $1,500 for each new connection, when and if connected, with a maximum limit of 150 new connections. The $270,000 represents the estimated value of the 18 plus acres of land owned by the utility, which title will be transferred to the County upon purchase. The $1,500 per connection will be paid to the County by the new customer upon connection. The County, in turn, would then transfer payment to the seller of Bent Pine Utility. This payment per connection represents recovery of the utility company's cost of the systems infrastructure. Payment for the land at the estimated purchase price is, in our opinion, a reasonable purchase, considering the appraised value and potential value associated with Indian River County's (IRC) use of the land. We have estimated the physical value of the utilty system, excluding land, to be about $1,000,000. This value represents the replacement cost less accumulated depreciation. Existing connections plus estimated new connecti.ons equal 200; hence, the physical value per connection is $5,000. 46