03-05-85 v MINUTES OF THE COMMITTEE MEETING ON BUCCANEER UTILITIES
HELD AT THE CITY HALL ON MARCH 5, 1985 AT 4:00 P.M.
Mayor Howell called the meeting to order at 4:00 p.m. Those present were Mayor
Howell, Commissioners Gulliford and Van Ness; City Manager Fellows; City
Attorney, Claude Mullis, and representatives of Touche Ross Accounting Firm ,
Gee and Jensen Engineering firm, and Buccaneer Service Company.
The consultants from Touche Ross and Gee and Jensen presented tentative reports
which showed Buccaneer Utility Co. to be in excellent condition from both an
engineering and financial point of view.
Messrs. Richard W. Gordon and Wayne Middleton of Touche Ross presented a fore-
casted statement of revenue and expenses for the six years ending December 31,
1990. (Copy of which is attached hereto and made a part hereof.) Projections
were based on 1985 actual existing connections and those connections which there
are signed developer agreements for that is anticipated through the end of 1985.
By the end of 1985, the projected connections would be 2,492. The years
1986 through 1990 reflected additional connections that were projected and were
primarily additions to existing developments that were already under
construction or in place at the time. By the end of 1990, the projected
connections were 5,407. The water and sewer revenues were city of Atlantic Beach
tariff revenues at one and one-half times those rates as all of the connections
are outside the city limits of Atlantic Beach. The revenues and expenses were
not adjusted upward for any cost of living escalators.
Following a general discussion on the statement including the 400,000 GPD sewer
tanks projected as captial outlays in 1986 and 1988, the Committee was given
an amortization chart showing amounts of annual payment to amortize $1,000,000
over 20, 15, and 10 year terms for their perusal. The final conclusion was that
sufficient funds could be generated to meet the company's operating expenses,
working capital needs, debt service and other financial requirements during the
forecast years.
Mr. Mullis introduced Mr. Mark Rocca,of Gee and Jensen Engineering Co. Mr. Rocca
stated they had one of their wastewater specialists physically tour the site.
He looked at all of the major equipment in place, reviewed company records, etc.
Their report was not ready for presentation. Mr. Rocca stated they had initially
found that the Buccaneer Service Company's equipment in place was in excellent
condition for a utility of that type, they had excellent maintenance records and
procedures, and all equipment had been kept up as should be. There were no sig-
nificant problems including any regulatory bodies. The majority of the assests
were determined to be fairly new having being constructed since 1982. The values
were estimated based on three different methods. Their findings were the
replacement costs at the present time and projected to the end of 1985 would be
somewhat higher than 3.9 million dollars and will be itemized in the report as
to the water system facilities, the wastewater system facilities, the general
plant which included the administrative offices, the inventories provided and
the land if it is provided to Gee and Jensen by that time. Also, the basis for
their projections for the assets they feel Buccaneer will be obtaining between
February 26th and the end of 1985.
Mr. Rocca further reported they had reviewed Buccaneer's current and projected
PAGE TWO
MINUTES
MARCH 5, 1985
capacities. Their engineers again took all the available information and went
out and developed the system capacities. There are a set of wells at the Mayport
plant and a set of wells at the Assisi Lane plant. They found those capacities
to be .43mgd for the Mayport wells & .2mgd for the Assisi Lane wells. They also
included their water withdrawal permit quantity which was .309 mgg. The disposal
at the St. Johns River outfall was also evaluated, based as it sits today
without any other equipment attached to it, they found it to be able to handle
in excess of .432mgd. He concluded by saying their report should be out by the
end of the week and would provide the Committee a copy at that time.
Mayor Howell thanked the consultants for coming and as soon as all the reports
were received another meeting would be called.
The Mayor declared the meeting adjourned at 5:15 p.m.
/// /5.`. / /7 / .
W' H. e 1
Mayor/Presiding Officer
ATTEST:
Adelaide R. Tucker
City Clerk
CITY OF
r*14#atic Vaid - 941ida
716 OCEAN BOULEVARD
--- P.O.BOX 25
ATLANTIC BEACH,FLORIDA 32233
{ lift ; 4 TELEPHONE(904)249-2395
CITY OF ATLANTIC BEACH
PUBLIC NOTICE
The Committee on the Buccaneer Utilities will tour the facilities of
Buccaneer Service Company on Tuesday, March 5, 1985 at 2:00 P.M.
Immediately following the tour, a Special Meeting of the Committee will
be held in the City Hall, 716 Ocean Blvd. , Atlantic Beach, Florida.
Posted 3/1/85
City Hall
Copies mailed to:
Beaches Leader
Sun Times
Times-Union