Money transfers, paperwork completed, finalizing water utility purchase

Money transfers cleared seamlessly on Thursday, and city officials merged staff with pre-existing Florida Water Services staff working out of the Cypress Gardens building on North Collier Boulevard.

"Everything's completed and finalized," City Manager Bill Moss said Sunday evening. "Susie (Schultz) was working out of (the Florida Building) on Thursday and Friday."

Last month, in preparation for the $85.3 million city acquisition of Florida Water's Marco, Marco Shores and Capri assets, Moss appointed Schultz office manager for the operation. She is the former Public Works Department executive secretary.

Jacob Rohrich, the six-year manager of Florida Water's local assets, will run the utility for the city.

Moss and Marco Council Chairman Mike Minozzi were in Orlando on Tuesday and Wednesday last week to clear up paperwork, and the money transfers were completed Thursday.

City Council members will approve a series of measures at tonight's meeting to get city-run operations under way, including a budget amendment.

Here's what's on the table for council approval:

-- Second reading of an ordinance establishing regulations and procedures for operation of the water and wastewater utility.

-- A resolution to adopt the new 150-page Marco Utilities Department Manual of Standards and Specifications.

-- Award of a $766,758 contract to MWH Americas Inc. to design a utility master plan.

"While substantial in cost, the thorough evaluation and analysis of the water, wastewater and reuse system will determine how to best allocate the $35 million (capital improvement plan) to ensure prudent allocation of the investment," Moss wrote in a memo to council members. "The analysis and report will allow City Council to select the best utility policies for the future of Marco Island, among many alternatives."

The contract outlines MWH Americas' commitment to perform 30 separate tasks for the city, Moss wrote.

They include:

-- Establishing a business plan for the city's new utility.

With an aggressive timetable, and completion set for June 15, 2004, MWH will integrate ideas from staff, council and residents about how to design an effective business plan, Moss wrote.

"The final plan will result in some of the following specific objectives," Moss wrote.

They are:

-- Determining customer expectations and needs by use of scientific surveys;

-- Setting measurable quality-of-service guidelines, such as quality compliance, water pressure, interruption rates, sewer stoppages, line breaks, response time to problems and overall customer satisfaction;

-- Identifying work necessary to bring existing water systems up to customer expectations and needs as well as assuring compliance with all regulatory and environmental requirements;

-- Identifying solutions to meet shortfall in existing water supply by April 2004;

-- Comparing alternative wastewater collection system, their advantages, disadvantages, and cost and select alternatives by April 2004 with completion of islandwide construction in 2006;

-- Expanding the existing reclaimed water system to maximize available effluent for irrigation by 2006;

-- Identifying an end date and plan for the use of reclaimed water for all of the island's irrigation needs; and

-- Evaluating alternatives for water sources, such as surface lakes, wells and bulk purchase from other utility systems.

City Council members will be asked to approve a $118,927,547 budget amendment to incorporate utility operation into the city's 2004 fiscal budget.

The water utility became part of municipal services on Thursday and needs an operation budget approved by council, said Finance Director Bill Harrison.

Harrison broke down the $118,927,547 figure as follows.

-- The sources and uses of the $102,791,300 general revenue bond issue, and

-- An 11-month operating budget of $16,136,247.

"The operating budget for the utility has been developed by using a combination of resources from Public Resources Management Group, our financial consultants, budget and expenditure data received from Florida Water, and the work of our staff," Harrison wrote in a memo to council. "Due to the major uncertainties in taking over this major operation, we have budgeted both revenues and expenditures conservatively and provided substantial contingency funds for this year."

Prior to completing the sale last week, Marco has spent the better part of a decade trying to work out some kind of deal over its water supply.

After resuming talks with Marco officials in April, Florida Water agreed to terms on July 23, and, on July 24, announced the deal to sell its utility on Marco, Capri and Marco Shores for $85.3 million.