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03-26-98 vMINUTES OF THE SPECIAL CALLED MEETING OF ATLANTIC BEACH CITY COMMISSION HELD IN COMMISSION CHAMBERS AT 2:00 PM ON THURSDAY, MARCH 26, 1998. PRESENT: Suzanne Shaughnessy, Mayor Mike Borno, Commissioner John Meserve, Commissioner Also: Jim Jarboe, City Manager Bob Kosoy, Public Works Director Alan Jensen, City Attorney(Arrived 3:00 PM) Harry McNally, Utility Plant Division Dir. (Buccaneer) Maureen King, City Clerk The meeting was called to order by Mayor Shaughnessy. The Mayor explained the meeting was held for the purpose of consulting with Jerry Wickliff, owner of Wickliff Companies, an Atlanta based corporation which builds wastewater treatment plants, regarding the proposed Buccaneer Wastewater Treatment Plant Expansion. Mr. Wickliff indicated he had spent about two hours reviewing documents provided by the Mayor and while this did not provide adequate time to do an in depth study, he felt that he could at least offer an unbiased opinion since his firm was located in Georgia and did not conduct any business in Florida. Mr. Wickliff's comments are summarized as follows: Felt the engineers had done a good job and he could see no fallacies in their recommendations. He felt the design presented by the engineers offered the most efficient, cost effective design. Inquired regarding the population figures used - It appeared the population figures were based on a 1990 study and felt it would be prudent to review current population changes. Indicated that the new design called for an entirely different type of treatment process and since he did not know what the engineers were asked to design, he was unable to offer an opinion as to whether the design met the requirements of the request for proposals (RFP). Bob Kosoy read an excerpt from the RFP outlining the requirements of the job. Pointed out the existing plant was twenty years old and had problems with corrosion, but appeared to be performing satisfactorily. As an alternative, he suggested the existing surge tank could be converted to another extended air plant which would provide an additional 300,000 gallons per day for a total capacity of approximately 1.6 million gallons per day (MGD). Page Two Minutes - Special Called Meeting March 26, 1998 Suggested the head works could be replaced and enclosed within a building which would take care of odor problems. Felt one advantage of staying with an extended air treatment was that this process involved fewer moving parts, and thus, could result in a lower power bill. This would require new head works, new influent pump station, new bar screen and new grit chamber. He estimated the cost for these changes and add-ons at $600,000 to $900,000. However, if another tank was built, the cost could be as much as the current Eder Engineers' proposed expansion. Mr. Wickliff indicated he had no information regarding the Atlantic Beach plant and could not respond to a letter from Alan Potter, which he had received just prior to the meeting. At this point, Mayor Shaughnessy summarized Mr. WicklifYs comments: possibly staying with an extended aeration process because of cost effectiveness; also this process has fewer moving parts which could result in lower maintenance and lower power bill. She summarized some of the expected growth in the Buccaneer area, i.e., connecting Mayport Village, expansion of the Navy housing. Mr. Wickliff pointed out additional pre-treatment measures may be required if fish processing plants in Mayport were connected. Commissioner Meserve pointed out that none of the engineers interviewed during the selection process, had suggested rehabilitating and upgrading the existing plant. He felt the design engineers should be given an opportunity to address this issue. City Manager Jarboe indicated he had discussed with the Jacksonville Electric Authority(JEA) the possibility of their purchasing the plant. Discussion then ensued regarding whether it would be better for the city to try to sell the plant as is, or to continue with the proposed expansion in the hope that this would make the plant for attractive to a prospective buyer. Discussion ensued regarding the feasibility of linking the Atlantic Beach and Buccaneer wastewater treatment plants but Mr. Wickliff indicated he could not offer any opinion on this matter since he had no information on the Atlantic Beach plant. The City Manager felt the city should consider all options but expressed concern that linking the plants may make the sale of the Buccaneer plant more difficult. He indicated that two apartment complexes and a hotel were in the planning stages, and growth related to the Wonderwood Expressway and the additional flow from the village of Mayport, and possibly the expansion of Navy housing would have a direct impact on the Buccaneer system. With respect to linking the two plants, Mr. Wickliff pointed out that many other factors would have to be considered such as peak flows, the size of the force mains, would additional pump stations be required, were easements readily available? etc., before the city could link the two sewer plants. Page Three Minutes - Special Called Meeting March 26, 1998 Mayor Shaughnessy inquired whether Mr. Wickliff felt the city could recoup the funds expended to expand the plant if the city should decide to sell Buccaneer. Mr. Wickliff indicated that utility plants were selling in Georgia for five to seven times their annual revenues and he felt the city could recoup the cost of the expansion if the plant was sold. He also pointed out that EPA was continually becoming more strict regarding the quality of effluent and this could result in additional treatment costs to the city in the future. Discussion ensued regarding whether the city needed to expand the plant by 600,000 GPD now or whether a refurbishing of the plant and increase the capacity by about 300,000 GPD would be adequate. In the meantime the plant could be sold and additional expansion would become a moot point. Jack Meadors, of Meadors Construction Company, the apparent low bidder on the Buccaneer wastewater treatment plant expansion, pointed out that the effluent to the Atlantic Beach plant was primarily residential and he felt the city may have problems with regulatory agencies if industrial effluent was introduced. He felt that the added capacity at the Buccaneer plant would make the plant more attractive to a prospective buyer and he pointed out that there was very little price spread between the bids received which, he felt, indicated the city had received good bid prices for the project. Alan Potter, 374 Second Street, suggested the possibility of only refurbishing the old plant, building a master lift and then building an identical plant of concrete or steel across the street on Regulus Drive, which he felt would be a cost saving to the city. Commissioner Borno confirmed that the city owned sufficient land to expand the Buccaneer plant; he confirmed that the SBR provided a more rapid treatment without the construction of additional tank capacity; he confirmed that the effluent from the Buccaneer plant was a high quality; he confirmed that while under normal conditions the plant appeared to have available capacity, during peak periods, the plant had operated at 100% of capacity. Commissioner Borno inquired whether the effluent could be sold for reuse and Mr. Wickliff indicated that effluent that meets certain standards can be reused. The Mayor asked Mr. Wickliff to explain the guarantee his company gives with new plants. Mr. Wickliff indicated that his plants must meet reuse quality standards for thirty consecutive days, and in addition, he also provides a cash performance bond in the amount of the equipment in the job. In response to the Mayor's enquiry it was pointed out the city required a 100% payment and performance bond in the Buccaneer expansion project. Page Four Minutes - Special Called Meeting March 26, 1998 Commissioner Meserve felt that since Mr. Wickliff had indicated that the design which had been presented by the engineers was the most cost effective and efficient system for the expansion, the apparent question to be resolved was whether the city wanted the extra 300,000 GPD capacity. Alan Potter asked Mr. Wickliff to estimate the cost of constructing an identical 600,000 GPD plant across the street from the Buccaneer plant; Mr. Wickliff responded that he felt the cost would be similar to the design being proposed. Mr. Wickliff left the meeting at this time (3:12 PM). Commissioner Meserve inquired why the engineers had recommended a fiberglass grit chamber and Mr. May of Eder Engineers, responded that much of the metal throughout the existing plant was severely corroded and could be removed and would not need to be replaced with the SBR process. The tanks, however, were in fairly good condition. He indicated that fiberglass is used throughout the industry and the fiberglass liner would protect the metal. He indicated they had looked at proven equipment and felt that the SBR process would give the city more flexibility in the treatment process. Commissioner Meserve also asked Mr. May to comment on the operation requirements of the different types of treatment processes. Mr. May responded that with the advances and reliability of electronics the SBR process is more easily maintained today than earlier SBR systems and he felt that the Fluidyne system was one of the best. Commissioner Meserve inquired regarding the cost of power to operate the plant and Mr. May responded that he felt the SBR plant was an efficient plant and should be no more expensive to operate than an aeration system. Commissioner Meserve left the meeting at this time (3:45 PM). Discussion ensued regarding on-going maintenance which would be required and it was pointed out that the existing tanks were from fourteen to twenty-one years old and some maintenance would always be required. Mayor Shaughnessy indicated that she had not questioned whether the engineering was good, but whether there were alternatives which had not been considered. She also felt that it may be possible to over-improve the plant and not be able to recoup the funds if the property is sold. Discussion ensued regarding the possible acquisition of the plant by the JEA and the Mayor indicated she felt the sale of the plant to the JEA would not be driven by the condition of the plant but that JEA was more interested in acquiring the service area. Page Five Minutes - Special Called Meeting March 26, 1998 There being no further discussion, the Mayor declared the meeting adjourned at 3:55 PM. da-Zo144.44.-e—\5 SUZANNE SHAU SSY U Mayor/Presidm: •fficer ATTEST: th1NH Certified Municipal Cler