BY TRACY LEE TATE
Special to the Times
The City of Lake Butler is once again tightening its belt and trying to make the best of a bad financial situation.
The city is facing a major budget shortfall in the funds that had originally been reserved for the new state-of-the-art water treatment plant – a plan that has been in the works for several years – the problem is two-fold: the cost of labor and materials has increased drastically in the years since the plans were drawn up and, some of the money that was reserved for the project was spent on other city expenses by a former city manager.
Construction costs quadrupled
Mittauer Engineering is the company that produced the plans for the project and is to oversee it. Representatives of the company came to the regular July meeting of the Lake Butler Board of Commissioners on July 16, 2024, to report their findings as to the increased construction costs and possible cuts that will help reduce costs. John Pitrohovich and Greg Lang, both engineers from Mittauer, told the board that materials and labor costs have multiplied about four times what they were at the time the project was planned. First, they gave an update about the grant deadlines and then went on to report on where the city stands as to funding the project.
Lang reported that the city would need to apply for an extension on a grant that comes due in December (when the project was originally planned to be completed). Lang said his company would take care of the request and that it should be no problem. As to the change in funds needed to complete the project, he said the city was facing a large shortfall.
Capacity and costs cut
As to cuts in the original plans there were several recommended. The commission had already voted to omit the solar array originally planned to power the plant, with the engineers’ approval. Other recommendations for cuts included replacing the manifold and force main system and going back to the use of pump stations updated and with all new equipment. Also, they pointed out that the original plans called for a 1-million-gallon-per-day capacity, more than the city needs at present. The engineers recommended cutting the capacity back to where it is now with the old facility – 700,000 gallons per day. Cutting the capacity will reduce the size of the tank needing to be built and will also make the refurbishment and expansion of the spray field unnecessary at this time. Construction specs will be modified to make the plant expandable should future growth require it, although it will require an expansion of the spray field as well. The commission was advised to begin any future expansion plans as soon as they became aware that it would be needed.
“With basically the same capacity as you have now, the plant will be able to handle the load and will also be able to handle “shock loads” of runoff water in the case of severe storms.”
The city has a long-standing agreement with FDOC to provide wastewater handling and there are still about 12 years on the contract. City Attorney John Maines told the board that now would be a good time to put a cap on how much input of wastewater the prison would be allowed to send to the plant and asked the engineers if they had any means of determining the amount.
The board approved all of the suggested cuts, with the changes contingent on grant, permit and state regulations. Lang told them that, hopefully, the cuts would be enough to make the project feasible.
City Commissioner Joe Stephenson asked about the operating costs for the new plant and how they would compare to current costs.
Lang said that the big items were energy and the cost of workers, requiring three full-time operators. He was told that worker hours would increase from 6 to 16 hours per day, requiring three full-time operators. The city already has two, and a third is now working towards his certification. Lang noted that operators were usually paid between $60,000 and $80,000 per year, with benefits.
Other changes to be made will be in how the operating costs are paid. According to figures made when the original agreement was signed, the prisons provide about 2/3 of the wastewater handled by the plant. Another agreement, now ending, prevented increases in the fee for services, but the new agreement can reflect 2/3 of the new operating costs.
Timeline
The engineers said that, with all approvals in hand, the project could be put out for bids in early 2025. The grant deadline for those monies is Oct. 21, 2026, when the Federal portion of the grant funds will be disbursed ($15 million).
As to the planned new holding tank, the engineers recommend that the planned size be reduced, with the resulting cost being reduced 2.5%. The tanks are made of steel with a coating of glass fused to the inner surface. Mayor Melissa Hendrix said she would like to see the item put out for bids as well to see the actual cost of purchasing and installing the originally planned size of 150,000 gallons. Any or all bids can be rejected if they come in too high, and then a reduction in size may have to be considered. The cost of the tank will be paid with funds from a special legislative appropriation. Lang said it would take 60-90 days for the permitting of the tank project and then it can be put out for bids. It will take about six months to build, requiring the above-mentioned extension of the grant deadline.
Also in the works is the securing of a $11.25 million “forgiveness loan” from Florida’s Department of Environmental Protection. This loan has already been preapproved, pending the city’s documentation that they are financially able to repay the required $1.3 million portion of the “loan.” The term of the loan will be set at 20 years. Hendrix said she thought that the anticipated new payment agreement with FDOC should be sufficient to prove the city’s solvency.
