City of Groveland Minutes City Council Workshop Monday, April 29, 2024  The Groveland City Council held a workshop on Monday, April 29, 2024 in the E.L. Puryear Building located at 243 S. Lake Avenue, Groveland, FL 34736. Mayor Evelyn Wilson called the meeting to order at 6:04 p.m. with the following members present: Vice Mayor Mike Radzik, Council Members Barbara Gaines, Richard Skyzinski, and Dina Sweatt. City officials present were City Manager Mike Hein, City Clerk Virginia Wright, and Sergeant-At-Arms Chief Shawn Ramsey.  City Attorney Anita Geraci-Carver had an excused absence.  As an alternate option, the public was provided the opportunity to attend the April 29, 2024 City Council Workshop virtually in listen/watch mode only. A public notice with instructions to participate was posted to the City's website under "public notices" at www.groveland-f.gov. and  int the display board at City Hall.  AGENDA  1. Critical Utility Infrastructure Capital Planning (PowerPoint pages 2 -5 as attached to these minutes)  Transportation & Public Works Director T.J. Fish provided a PowerPoint overview as follows:  Presentation Overview  Groveland Utilities - Recent History 2018 - Present  Critical Capital Projects Grant and Loan Options Direction to Staff  City's Position with the State Revolving Fund Loan Program  Groveland Utilities - Recent History 2018 - Present  2018 - New City Manager 2019 - A New Approach 2020 - Utility Master Planning Begins  2021 - Completion of Facilities Plans of Existing Needs  2022 - Completion of the Utility Master Plan (UMP) and Design of Capital Projects 2023- Completion of Design Phase of Capital Projects/Raftelis Funding Study  2024- Transition into Construction Phase  2018 - New City Manager  City Manager Hired ay 2018 Multiple customer issues experienced  Council members concerned with water, wastewater, and reclaimed water utilities City Manager explores options to cost-effectively and expeditiously address the utility  concerns  1    APRIL 29, 2024 CITY COUNCIL WORKSHOP MINUTES  2019- A Change in Approach  City Council has option to sell the utilities, or to outsource the operations and City Council voted to adjust rates and impact fees per a 2017 study  management sewer rates  Rate increases were the first in 17 years for water rates and the first in seven years for City Council commits to outsourcing utilities operations and management and contracts  services with Woodard & Curran  Justin DiMello, Vice President of Woodard & Curran provided a PowerPoint presentation as  follows: (PowerPoint pages 6 - pages 22 as attached to these minutes).  2020 Utility Master Planning Begins  2021 Completion of Facilities Plans of Existing Needs  2022 Completion of the Utility Master Plan (UMP) and Design of Capital Projects 2022 Completion of the Design Phase of Capital Projects/Funding Strategy  2024 Transition into Construction Phase Critical Infrastructure Projects Critical Drinking Water Capital Projects Utilities Emergency Operations Center Critical Clean Water Capital Projects Villa City Wastewater Treatment Facility Identified 5-Year Capital Needs Summary  Leverage, Success  Tami Ray-Ross, National Fiscal Solutions Director with Woodard & Curran, provided a PowerPoint presentation as follows: (PowerPoint pages 23 - pages 26 as attached to these  minutes).  Financing Options Example SRF Loans  Strategy & Next Steps to Execute Growth will pay for growth  Staff moving forward with examining financial mechanisms and ways to complete Secure FDEP SRF Loan Awarded: November 2023 - Awaiting Rate Sufficiency Continue to leverage Local, State and Federal Alternative Financing (Grants) Mr. Fish reported the grants were paying for forty-three percent (43%) of the projects. He  projects on time under State requirements Secure FDEP SRF Loan: August 2024 Execute Critical Construction Contracts  reported staff has looked for every opportunity to ease costs.  A  2    APRIL 29, 2024 CITY COUNCIL WORKSHOP MINUTES  Council Member Gaines inquired about the replacement of aging pipes. She asked how often they would be reviewed for repair. Mr. Fish stated we went from no utility planning to a master plan within the span of five (5) years. From now on there would be regular updating of the Master Plan and systematic reviews for infrastructure. The Utility Master Plan would also be revisited Council Member Sweatt asked how often the new water meters would need to replaced. Mr. Fish stated the water meters need to be replaced every ten (10) years. The new company, Neptune, Council Member Skyzinski stated it is daunting to realize what the spending has added up to with all the projects. However, he stated the City has done sO wisely, expeditiously, and economically. Vice Mayor Radzik stated the presentation was great. He noted the plan has been worked on six to seven (6-7) years. Unfortunately, it has been known for almost nineteen to twenty (19 - 20) years the system needed help. Some councils would not raise the rates for water and sewer. It was too much conservatism with the known amount of housing coming onboard. Vice Mayor Radizik stated the City cannot annex any more residential homes. He asked where the fifty-five (55) forty-five (45) split came from. Ms. Ray-Ross stated it was based on demand as each project was analyzed for how much would be used for the existing customer base versus Vice Mayor Radzik inquired if the split was flexible. Ms. Ray-Ross stated it was an estimate. However, it was approved by the Department of Environmental Protection (DEP) as a part of the Vice Mayor Radzik asked if meters at the wells had been upgraded. Mr. Fish stated yes. He reported what had been learned along the way was that we can meter what comes from the ground as one set of data. The more meaningful meter data was what was treated and sent out too customers. That was the metric used to determine if we were collecting all the revenue back or Mayor Wilson stated one of the best days was when the City partnered with Woodard & Curran. She reported the funding that Woodard & Curran and staff were able to obtain is very helpful. Mayor Wilson felt the upgrades should have been done years ago. She thanked Woodard & City Manager Hein thanked Woodard & Curran. He noted all the information was not necessarily new. It was put together to relay the complexity of what would be implemented. The grants and SRF loan equate to over one hundred million dollars $100,000,000) in savings. Staff would be working over the next thirtyt toi forty-five days 30-45 days formulating a plan to ensure all guidelines were met. Mr. Hein stated the City's Partnership with Woodard & Curran has been instrumental  every five (5) years.  would be handling the replacements.  new growth.  planning process.  undercharging.  Curran for all of their efforts.  in the City's progress.  3    APRIL 29, 2024 CITY COUNCIL WORKSHOP MINUTES  ADJOURNMENT  Mayor Wilson adjourned the workshop at 6:48 p.m.  Groveland FLORIDA Citys with NaturalCharm  Cilom  Eoellyp  EvelyoWison, Mayor   Attest:  Virginia Wright, City Clerk  4    Groveland  FLORIDA Citywith Natural Charm  April 29, 2024  Critical Utility Infrastructure Capital Planning Department of Transportation & Public Works  Utilities * Streets * Fleet * Facilities * Solid Waste * Water Conservation * Engineering * Stormwater * Transportation *    Presentation Overview  Groveland Utilities - A Recent History 2018-  Present  Critical Capital Projects  Grant and Loan Options  City's Position with the State Revolving Fund  Loan Program  Direction to Staff  Woodard Curran    Groveland Utilities - A Recent History 2018-Present  2018 - New City Manager 2019 - A New Approach  2020 - Utility Master Planning Begins  2021 - Completion of Facilities Plans of Existing Needs  2022 - Completion of the Utility Master Plan (UMP) and Design of Capital  Projects  2023 - Completion of Design Phase of Capital Projects / Raftelis Funding Stud  2024 - Transition into Construction Phase  - vpars Curran    2018 - New City Manager  >City Manager hired May 2018  - Council members concerned with  CIPYOISKOVEFANDN  water, wastewater, and reclaimed water  utilities  Multiple customer issues experienced > City Manager explores options to cost- effectively and expeditiously address the  utility concerns  Woodard 4 Curran    2019 -A Change in Approach  City Council has option to sell the utilities, or to outsource the operations and management ( City Council voted to adjust rates and impact  fees per a 2017 study  Rate increases were the first in 17 years for water rates and the first in seven years for  sewer rates  - City Council commits to outsourcing utilities operations and management and contracts  services with Woodard & Curran  5 Woodard Curran    2020 - Utility Master Planning Begins  City Council approved grant and loan agreements with the FDEP to conduct facilities planning - PLANNING PHASE AI Request for Proposals (RFP) advertised for Utility Master  Plan - Woodard & Curran selected  An inventory of all facilities was conducted and an assessment of existing and future needs commenced Woodard & Curran completed the first year of 0&M services with a tremendous amount of repair and replacement projects while enduring the COVID-19  Pandemic  Woodard Curran    2021 - Completion of Facilities Plans of Existing Needs  DRINKING DRAFT WATER PLAN FACLITES  Drinking Water Facilities Plan approved by City Council and then by the Florida Department of Environmental Protection  (DEP)  DRAFT CLEANWATER FACILITIES PLAN Crwinuie  Clean Water Facilities Plan addressing wastewater and reclaimed water needs also approved by City Council and  then DEP  All capital projects within both facilities plans are recognized  by the State of Florida as Existing Needs  02257507 CF/CICroxsn mb2020  Woodard Curran    2021 - - Completion of Facilities Plans of Existing Needs  > - City Council executed SRF loan agreements with DEP to begin design of each capital project identified in the DEP-approved  facilities plans  City initiated an RFP for design services for  the capital projects  Halff Associates and Woodard & Curran were the two selected engineering firms to design  the capital projects  Woodard - Curran    2022- Completion of the Utility Master Plan (UMP) and  Design of Capital Projects  The Utility Master Plan (UMP) adopted by City Council May 2022 addressing existing and future needs Existing needs financial responsibility of the existing  Woodard UTILITY MASTER Curran PLAN Groveland FNAL  utility customer base (utility rates)  Future needs financial responsibility of new development  (investments or impact fees)  Task orders issued to Halff Associates and Woodard & Curran to design projects funded through SRF low- interest loan funding - DESIGN PHASE  023253 City  V Curran    2023 - Completion of the Design Phase of Capital  Projects / Funding Strategy   Design of multiple capital projects continued through the year with many projects completing the design phase in 2023  More complex capital projects design phases  extended into early 2024  Legislative appropriation grants totaling $11 million announced for Groveland and Mascotte for upgrade and expansion of the Sampey Wastewater Treatment Facility  Woodard Curran  10    2023 - Completion of the Design Phase of Capital  Projects / Funding Strategy  : SRF loan agreements approved by City Council to proceed into construction phase > City Staff and consultants commences work toward recommendation on updated utility rates and water and sewer impact  fees  Previous planning and design loans now able to be rolled into new construction loans through the SRF Program  Woodard - Curran  11    2024 - Transition into Construction Phase  - Execution of construction loans pending demonstration of debt service ability  DEP letter confirms pending execution of loan agreements when debt serviceability can be  demonstrated  During FLC, City officials visit DEP executive team in February 2024 - encouraged to move  forward with SRF program  : SAHFI announcement $45M in water and sewer grant funding, pending grant agreements  Woodard Curran  12    Critical Infrastructure Projects  The following projects have been planned, described and presented to City Council in the Facility Planning and Utility Master Planning efforts.  AND  vpaar Curran  13    Critical Drinking Water Capital Projects  Asbestos Water Main Replacement, Ph. 3 Replacing oldest pipe in Downtown area of Groveland  Estimated Construction Cost: $4M  Scheduled for Bidding & Construction: 2024  Funding Source: FDEP SRF Rate to Impact Fee Split: 100/0  Woodard Curran    Critical Drinking Water Capital Projects  Water Meter Replacement Project  Replacing oldest water meters with new advanced  technology  AM N S  Estimated Construction  Cost: $6M  -  Bidding Complete. Scheduled for Construction: 2024 A  Funding Source: FDEP SRF Rate to Impact Fee Split: 100/0  Wpotard Curran    Critical Drinking Water Capital Projects  Villa City Water Treatment Facility New Wells, Water Treatment Facility, Storage  Tank and Transmission Main Construction Cost: $17M Scheduled for Construction: 2024 Estimated Completion: 2025  New Lower Floridan Aquifer Wells required by SJRWMD Consumptive Use Permit  Funding Source: SJRWMD Cost Share / FDEP  LowE  SRF / SAHFI Grant  Rate to Impact Fee Split: 55/45  Woodard Curran  16    Utilities Emergency Operations Center  Facility Plans identified the need for central and upgraded Public Works facility Hardened Utilities Emergency Operations Center for critical utility and publics works  operations  Improved Vehicle Maintenance and Storage  Facility, Technology Protection Design: In Progress  Scheduled for Construction: 2025  Estimated Cost: $6M  S Shared Funding in CW and DW SRF  Woodard Curran  17    Critical Clean Water Capital Projects  Sunshine Reclaim System Upgrades  New Lower Floridan Aquifer Well to supplement Reclaim Demand  Construction Cost: $1M  In Progress. Estimated Completion: 2024  Funding Source: SJRWMD Cost Share / Impact Fees  Reclaim Pump Station Upgrade Construction Cost: $3M  Scheduled for Construction: 2024 Estimated Completion: 2025 Funding Source: FDEP SRF Rate to Impact Fee Split: 55/45  Woodard Curran  18    Critical Clean Water Capital Projects  Sampey Wastewater Treatment Facility  Upgrade  Expand Capacity and Replace Aged Assets (1980), also includes new mechanical headworks at Sunshine  WWTF  Construction Cost: $42M - $49M 2-year Construction Timeline Estimated Completion: 2026  Funding Source: FDEP SRF (Pending Council Action)  AR Curran    Villa City Wastewater Treatment Facility  Utility Master Plan identified the need for a new Wastewater Treatment Facility to replace Sunshine WWTF A - 2 MGD (6 MGD full buildout) A $70M Currently Budgeted  $750K Legislative Grant Secured $19.8M SAHFI Grant Pending Planning: May 2024 Design: 2025  Construction: 2026-2028  Woodard Curran  20    Identified 5-Year Capital Needs Summary  Summary System Revenues Water Impact Fees Sewer Impact Fees Grant  Budget $5,775,948 $20,404,805 $33,820,491 $10,473,379 $525,280 $177,000 $4,950,000 $131,827,061 $2,000,000 $3,620,465 $45,564,018 $259,138,447  Percent of Total 2.2% 7.8% 13% 4% 0.2% 0.1% 1.9% 51% 0.8% 1.4% 17.5%  Grant (SRF Principal Forgiveness) Capital Lease Mascotte  SRF Loan (Pending Council Action) Bank Loan 2023 Bank Loan New SAHFI Grant Total  G vpord Curran    Leverage. Success!  Low Interest SRF Loans Villa City Drinking Water Villa City Drinking Water Villa City Drinking Water Lead Service Line Replacement Stormwater Wastewater (Sunshine & Sampey) Grants Secured Lead Service Line Replacement Groveland LFA Wells at' Villa City Sunshine/Sampey Sunshine/Sampey Regional WWTP Vulnerability. Assessment Sampey WWTF Lower Floridan Reclaim Well at Sunshine Crystal Lake Waterside Pointe Stormwater Improvements  Planning and Design Phase 1&2 Planning and Design Planning Construction  DW350620 LS35064 SW35063 WW350612 WW35061 WW35065  1.50% 2.35% 1.42% 0.00% 0.54% 0.06% 0.54% 1.79% Total $254,800  $3,071,200.00 $8,310,100.00 $24,893,836.00 $265,200.00 $300,000.00 $1,964,079.00 $38,260,302.00 $201,300.00 $77,266,017.00  Phase 1 Construction (AMR & Abestos Line Replacement) DW350621 Phase 2 Construction Production/Treatment/Distrbution) DW350621  Wastewater Pre-Construction (Sunshine & Sampey) Planning and Design Wastewater Planning (things outside of original plan) Planning  Planning/Design (LCRR) Construction- Sunshine Planning Design Planning/Design-1 Regional WWTP Planning Construction Construction- Sunshine Construction- Crystal Lake PamincDeteyComsnucton  LS35064 36640-SIRWMD $2,251,240 WW350610 $260,800 WW350612 $1,891,707 LPA0298-WW $750,000 23PLN20-V.A. $150,000 WG121-WW $6,500,000 36638-SIRWMD $1,104,112 36995-SIRWMD $87,500 LPA0297- SW $950,000 Total  $14,200,159 Total Funding: $137,0  Future Grants Pending GROVELAND  DW WW SW Total  $25,740,000 $26,985,000 $24,370,000 $77,095,000  $25,740,000 $16,513,000 $3,310,000 $45,563,000  Woodard Curran  22    Financing Options Example:  City of Groveland Villa City Treatment Improvements CUSTOMERS (EDU) TOTAL PROJECT COST TOTAL ANNUAL OMR FINANCING USDA Rural Development LPA FDEP WG Grant SAHFI Grant SDCG Grant DOE Grant Local Funds (Cash, Tap Fees, Etc.) BOND SRF CWLoan USDA Market Loan WIFIA Total Financing ANNUAL DEBT Annual BOND Payment Annual SRF CW Payment Annual USDA Payment Annual LOAN Payment Annual WIFIA Payment USDAF Reserve ANNUAL DEBT & OMR Total BOND Payback Total SRF CW Payback Total USDA Payback Woodard Totall LOAN Payback &Curran Total WIFIA Payback "Blue font indicates formula cell.  Project:  Scenario Scenario Scenario Scenario 9200 9200 9200 9200 $_28,000,000 $28,000,000 $28,000,000 $28,000,000 $ 750,000 $ 750,000 $ 750,000 750,000  2 3 4  $ $ $ $  $ $ $ 9 9 $ $ $ $ $ $25,740,000 $ $ $ $ $28,000,000 $ 2,260,000 $ $ $ $28.000.000 S $ 28,000,000 $28, 000, 000 $28,000,000 $28,000,000  20 6.50% $ 28.000.000 $ 20 0.54% $ 40 2.30% $ 20 7.00% $ 35 2.40%s  $ 2,541,179 $ $ $ $ $ $  $ $1,480,733 $ 119,516 $ $ $ S $ $1,191,521 s $ $ 119,152 $ $ 3,291,179 $ 2,060,673 $ 2,230,733 $ 869,516  Total FDEP SRF Benefit- $21,208,9  Total Future Av. Mo. Cost Per Customer $ 29.81 $ 18.67 9 20.21 $ 7.88  $ 50,823,581 $ $  $29,614,670S 2,390,327  $41,703.243 $  23    Financing Options Example:  City of Groveland Sampey WWTF Upgrade/Expansion CUSTOMERS (EDU) TOTAL PROJECT COST TOTAL ANNUAL OMR FINANCING USDA Rural Development LPA FDEP WG Grant SAHFI Grant SDCG Grant DOE Grant Local Funds (Cash. Tap Fees. Etc.) BOND SRF CW Loan USDA Market Loan WIFIA Total Financing ANNUAL DEBT Annual BOND Payment Annual SRF CW Payment Annual USDA Payment Annual LOAN Payment Annual WIFIA Payment USDA Reserve ANNUAL DEBT& OMR Total Total BOND Payback Total SRF CW Payback Total USDA Payback Gws Total LOAN Payback Curran Total WIFIA Payback "Blue font indicates formula cell.  Project: Scenario Scenario Scenario 2 3 9200 9200 9200 $42.000.000 $42.000.000 $42.000.000 $ 1.250.000 s 1.250,000 Is 1,250.000  S $ $ $  S S S S S S S S S S S $ S S S $ 542.000.000 S $ S $42.000.000 s $ 42.000.000 $42.000.000 $42,000.000 $ 3.811.769 S S $ $ S 2.221,100 $ $ $ $ $ $ S $1.787.282 $ S S $ 5.061.769 s 3.037.282 S 3,471.100 S 76.235.372 $ $ $ $44,422.005 $ $ $ S $ S $ $62.554.865 $  20 6.50% $ 42.000.000 S 20 0.54%s 40 2.30%s 20 7.00% s 35 2.40% $  Total FDEP SRF Benefit -  $31,813,  Future AV. Mo. Cost Per Customer $ 45.85 $ 27.51 $ 31.44  24    SRF Loans  Jdo Gooda afternoon,  Securing the SRF Loans City does not currently qualify for borrowing Rate and Impact Fee adjustment required Failure to secure the SRF loans will put allof these critical construction projects  Subject: FW: Groveland' WW350613- Treatment and Transmission  ljust wantedt tof follow up on my previous email regarding the financials. Itc does not appear as if afford this loan. Havet there been any rate increases implemented recently that we are unaware  provide any resolutionsyordinances. Thanky you,  is  Scott McArthur Government Operations ConsultantI Division of Water Restoration Assistance State Revolving Fund Program SaoXsePssDtPonA Office: 850-245-2998  in jeopardy.  , Woodard &Curran  25    Strategy & Next Steps to Execute  Next Steps  - Growth will pay for Growth Staff moving forward with examining financial mechanisms and ways to complete projects on time under State requirements Secure FDEP SRF Loan Awarded: Nov. 2023  ONe BI  - Awaiting Rate Sufficiency Secure FDEP SRF Loan: August 2024 Execute Critical Construction Contracts  - Continue to Leverage Local, State and Federal Alternative Financing (Grants!)   Curran  26    Thank you!  Questions?  T.J. Fish, Director of Transportation & Public Works, City of Groveland  ish@grovelanc-t.gw  Justin deMello, Vice President, Woodard & Curran  demell@woodardcurran.com  Tami Ray-Ross, National Fiscal Solutions Leader, Woodard & Curran  ayCwpoarcuran.com  Woodard Curran  27