BOYNTON BEACH UTILITIES CONVERSION PROJECT 1/15/2017 1

Transcription

1 1/15/2017 1

2 INTRODUCTION WHY THE SECOND PRESENTATION AND VOTE? PROJECT BACKGROUND AND ORGANIZATION PROJECT TEAM AND DUTIES SCOPE OF PROJECT MAJOR POINTS OF THE PURCHASE AGREEMENT IMPACT TO THE TBE MAINTENANCE BUDGET IMPACT TO INDIVIDUAL SHAREHOLDER/OWN/RESIDENT BENEFITS 1/15/2017 2

3 WHY THE SECOND PRESENTATION AND VOTE? TBE s Declaration and Bylaws require a secrete ballot. TBE s Declaration and Bylaws defines the TBE s utility service as a common expense ; BBU conversion will utilized individual meters and issue individual usage bills. An amendment to our documents is required. The changes created a serious delay and the delay has an impact to our FY2017 budget. Many residents did not have an opportunity to attend the Dec. 13 th presentation and we need their vote! 1/15/2017 3

4 Background - From First Presentation: TBE sent letter of intent to BBU to do a feasibility study - completed BBU evaluated the business plan for servicing TBE - completed Shareholders/Owners vote on proposal Part of the annual vote If approved, get legal review of purchase contract BBU will present proposal to Boynton Beach City management If approved get time line from BBU 1/15/2017 4

5 TBE HOA President TBE Project Coordinator BBU Project Coordinator BBU Customer Service Mgr. TBE Financial Impact FR2017 Budget Impact Maintenance Fee Impact Homeowner s Impact Potential Salvage impact TBE Hardware Conversion Shutdown of water system Conversion of wastewater system Installation of meters and clean-out boxes Identification of Equipment salvage Coordinate BBU upgrades TBE Communications Complete and simple transparency Interface between TBE residents and BBU Customer Service Questions and Answers 1/15/2017 5

6 TBE HOA President J. Cyrilla TBE Project Coordinator M. Michele BBU Project Coordinator M. Low BBU Customer Service Mgr. Barb Conboy Financial Impact TBE Board Mbr F. Duguay TBE Resident P. Roberts C. Morin J. Langevin TBE Office P. O Connor TBE Hardware Conversion TBE Board Mbr B. Cullison TBE Resident tba TBE Communications TBE Board Mbr S. Davis TBE Resident R. Bauer 1/15/2017 6

7 SCOPE OF PROJECT SELL TBE s POTABLE WATER PIPES TO BBU SELL TBE s WASTEWATER PIPES AND UP-LIFT STATION TO BBU TRANSFER ALL EXISTING EASMENTS, LICENSES, PERMITS FOR UTILITY SERVICES TO BBU CONVERT EXISTING TBE s WELLS TO IRRIGATION SERVICE SALVAGE TBE s POTABLE WATER TREATMENT EQUIPMENT AND SUPPLIES 1/15/2017 7

8 MAJOR POINTS OF THE PURCHASE AGREEMENT BBU will purchase all TBE s potable pipes (mainlines and service lines). BBU will purchase all TBE S wastewater pipes (mainlines and service lines) and up-lift station. TBE will sell the above assets to BBU in As Is condition. TBE will transfer all legal easements, permits and licenses to BBU. All shareholders/owners/residents will be required to pay a $100 deposit which is refundable after 24 consecutive monthly consumption bills paid on time. All shareholders/owners will be required to pay a $275 connection fee. 1/15/2017 8

9 MAJOR POINTS OF THE PURCHASE AGREEMENT CONT D The connection fee will pay for Your new meter A new valve between the main line and the new meter An additional valve installed between the new meter and the individual home A wastewater clean out box between the home and the main line will be installed. BBU will own the meter and the valve between the meter and the main line. Shareholders/owners will own the valve between the meter and the home. NO ANNEXATION to the City of Boynton Beach will be required. Shareholders/owners will interface directly with BBU s 24x7x365 Customer Service Center after conversion is complete. The rate for water consumption will be at BBU s published rate schedule. All maintenance, repair, replacement and upgrades of the pipe lines will be the responsibility of BBU. 1/15/2017 9

10 IMPACT TO THE TBE MAINTENANCE BUDGET Operating expenses for potable water and wastewater which is estimated at $149,000 per year, this will be reduced. TBE avoids planned capital investments estimated at $20,000. New expenses for TBE: Club house potable water consumption Office potable water consumption Maintenance building potable water consumption. Our project expenses/income All connection fees, club house, office, maintenance building Capital expenses for irrigation conversion Salvage income from selling existing water treatment equipment and supplies. 1/15/

11 IMPACT TO INDIVIDUAL SHAREHOLDER/OWNER/RESIDENT A signed service agreement between each shareholder/owner and BBU will be required. If a shareholder/owner/resident returns a completed application prior to the sale, the $100 refundable deposit will be waived. If an application is not received, the deposit will be required prior to the water service being initiated by BBU. The $275 connection fee will be a part of the FY2017 budget and maintenance fee. The connection fee to be paid to BBU by TBE will be paid quarterly starting 90 days after conversion. The individual monthly potable water/wastewater consumption bill from BBU; estimated to be $53/mo... The monthly estimated household consumption is 3300 gals of water. The estimated monthly minimum rate for part time residents will be $38/mo... 1/15/

12 PROPOSED FY2017 MAINTENANCE BUDGET Use the FY2015 excess cash of $16,748 to help pay FY2017 first quarter expenses for potable water and wastewater management. Reduce maintenance cost by reducing all line items associated with potable water and wastewater treatment for FY2017 ; an estimated total of $110,000. Adjust other line items using a guideline of 2.0% COLA and/or 2.0% inflation rate. Add two new line items:. TBE/BBU Connection Fees: payable once a quarter beginning 90 day after conversion; no individual connection fees. = $88,000. TBE water consumption (Club house, Office, Maintenance Bldg.). = $4,000 1/15/

13 Maintenance fee impact: BUDGET ANNUALLY QUARTERLY MONTHLY FY2016 $488,800 $1,528 $382 $127 FY2017 $429,878 $1,343 $336 $112 FY estimated $341,878 $1,068 $267 $89 1/15/

14 BENEFITS Reduced maintenance budget and maintenance fees. 24x7x365 customer service providing maintenance, repairs, replacements and upgrades without additional cost or assessments. Additional help to identify water leaks by constant monitoring. Additional fire protection as upgrades are installed and additional hydrants are installed Avoid additional capital expenses for potable water and wastewater treatment. As an example we have identified 6 weak spots in our wastewater system. Last repair cost us in excess of $8,000 for one repair. Extended, it would cost us $48,000 to repair our weak spots requiring a special assessments to Shareholder/Owners. Avoid any new governmental regulations, rules and requirements causing a need for specialized employees who command high salaries. Each shareholder/owner/resident will pay for their own water consumption. You will no longer subsidize your neighbor s water habits. We will see contracted and promised upgrades over time to our community. The upgrades could include 6 pipes, greater water pressure, additional fire protection, consistent water quality We can focus on retirement. No need to worry about the quality of water, water and sewer maintenance and future costly repair assessments. 1/15/

15 Royal Manor and their utility service is owned by a property manager with residents RENTING their lots. TBE residents OWN their lot. Our contract was crafted differently due to the ownership status. Additionally, the basic condition of the utility service for Royal Manor was in different state of repair, whereas TBE's aging pipe network is eroding. Royal Manor is within the city limits and has been paying city taxes for some time. TBE is outside the city limits and does not and will not be subject to paying any city taxes. The number of residents renting in Royal Manor is considerably higher than the 320 residents that TBE houses. You can verify these details by calling the property management company at Royal Manor. It was our understanding that Royal Manor refunded a portion of their monthly rent due to the selling of their water system to BBU. However, later, they imposed an increase to their lot rental. Royal Manor residents now pay an increased lot rental fee in addition to a monthly water bill. TBE is submitting a FY-2017 budget with a REDUCTION in HOA fees by $15/month for the first year and an estimate of another $23/month REDUCTION in HOA fees FY These reductions are the result of the BBU project. 1/15/

16 The printed communication notice mentions our water pump having a value above and beyond the current proposed selling price. In FY2016 TBE had to replace the water pump for potable water. The cost of the pump was over $8,000. What the writer did not understand is that TBE is ONLY SELLING THE PIPE WORKS for the water service and the wastewater manager. We are NOT SELLING ANY SUPPLIES, EQUIPMENT OR REAL ESTATE TO BBU. The purchase price of $10 is there as "Consideration" necessary for the sole purpose of creating a binding contract between TBE and BBU. Our contract ENSURES a) continued maintenance, repair, enhancements and 24/7/365 customer service, b) NO ANNEXATION is required for the purpose of providing utility service, c) cost of initial connection of TBE s infrastructure to BBU infrastructure is at BBU's COST, d) The individual $100 deposit (required by ALL utilities) is waived if we sign a service agreement prior to conversion and e) Resident's connection fee of $275total, includes a homeowner s valve and will be added into the current monthly HOA fee so it's paid over a 12 month period. 1/15/

17 The estimated bill from BBU will be $53/mo. based on 3300 gals of usage. Whereas it is true that our water bill from BBU will be somewhat higher than our current cost from TBE at $38/month ($149,000/320/12), the incremental cost will act as an insurance policy against ALL collapsing pipes, pump breakdowns, expenses for testing water regularly, supplies for treating our water and over all piece of mind that our water will be there when we need it and want it. 1/15/

18 1/15/