Title: Letter Re: Costs of Facilities Within the the Starkey Wellfield and Supporting Documents/Water Production Facilities, Payment Schedule
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Title: Letter Re: Costs of Facilities Within the the Starkey Wellfield and Supporting Documents/Water Production Facilities, Payment Schedule
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Language: English
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Spatial Coverage: North America -- United States of America -- Florida
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Abstract: Jake Varn Collection - Letter Re: Costs of Facilities Within the the Starkey Wellfield and Supporting Documents/Water Production Facilities, Payment Schedule
General Note: Box 28, Folder 2 ( West Coast Regional Water Supply Authority Agreements - 1976-1982 ), Item 9
Funding: Digitized by the Legal Technology Institute in the Levin College of Law at the University of Florida.
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Bibliographic ID: WL00004693
Volume ID: VID00001
Source Institution: Levin College of Law, University of Florida
Holding Location: Levin College of Law, University of Florida
Rights Management: All rights reserved by the source institution and holding location.

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WATER PRODUCTION FACILITIES


PAYMENT SCHEDULE


Total Depreciated Replacement Costs 1

From Construction Fund 2
Direct Costs:
Engineering Fees
Other Direct Costs


Indirect Costs:
Net Interest Cost During Construction
Bond Discount
Bond Issuance Costs
From Operations and Maintenance Fund 2
Costs of Original Project
Less: Amount Included In Total
Depreciated Replacement Cost

Improvements Subsequent to Project Completion

Facility Costs To Be Considered Under Payment Schedule


$ 500,419


39,301
1,768

24,678
6,609
5,172


3,402
2,492


910

21,273


$ 600,130


Payment Period to be 16 years (192 equal monthly payments) commencing October 1982.

Interest Rate at 5% 2

Monthly Payment $ 4,547.07.














1 CH2M Hill Letter of 2/22/82
2 Alexander Grant and Company Statement of 2/12/82


EXHIBIT "D"






CH2M
B HILL P WIE
H Lengineers B 98
planners FEB 21982
economists
scientists

22 February 1982



Mr. John Gallagher
City Manager
City of New Port Richey
320 East Main Street
New Port Richey, FL 33552
Re: Starkey Well Field Facilities Replacement Cost
Dear John:
In our letter to you of September 2, 1981, we included
information relative to the four construction projects
associated with the Starkey Well Field facilities and their
construction cost and time of construction.
At our recent meeting with Mr. Heath of the West Coast
Regional Water Supply Authority, the request was made of
CH2M HILL that we provide an engineering estimate of the
replacement cost for these facilities and to depreciate
these costs based on standard engineering practices.
The facilities basically fall into three categories with
associated depreciation time periods. These are:
1. Wells Projected life 100 years
2. Pipelines Projected life 50 years
3. Associated Well Field Equipment, including pumps,
motors, etc. Estimated life 25 years

To arrive at the estimated replacement values for the above
mentioned projects, we have utilized the Engineering News
Record (ENR) construction cost index and cross checked this
factor with our own construction cost estimates based on
recent project experience. The ENR index for 1972 (the
earliest project completion) was 1,761. The ENR index for
November, 1981 was 3,716. Utilizing this increase percentage,
we have estimated the following as replacement costs for the
subject projects:


Clearwaler Olffic
Ba, dilr I ec(uito CLniel. Suile 430. 1454 L. S.Hight,. 19. Sulh. Cleartai.e. Flourdd 33516 81.1 531-.454






. Mr. John Gallagher
22 February 1982 .
Page Two CH2MS'1HILL



1. Project No. 121-71-06 (6" test well) installed
mid 1972. Original construction cost $2,492.
Replacement cost $5,258.

2. Project No. 121-71-01 (3 12" production wells
and 2 6" observation wells) installed mid
1974. Original construction cost $54,843. Replace-
ment cost $102,885.
3. Project No. 121-73-04 (Pumps, Piping and Appur-
tenances for three production wells) installed
in late 1974. Original construction cost $119,988.
Replacement cost $218,377.
4. Project No. 121-71-02 (Main transmission lines -
30") installed late 1973. Original construction
cost $145,299. Replacement cost $281,154.
In depreciating the above replacement cost figures, we
utilized the straight line method with the following results:

1. Project No. 121-71-06 -- Depreciated replacement
cost $4,758.
2. Project No. 121-71-01 -- Depreciated replacement
cost $95,168.

3. Project No. 121-73-04 -- Depreciated replacement
cost $43,570 for the pipeline portion (8"), and
$120,754 for the equipment, including pumps, etc.
portion.

4. Project No. 121-71-02 -- Depreciated replacement
cost $236,169.

The total of the above depreciated replacement costs amounts
to $500,419.

Should you have any questions concerning our above procedures,
please don't hesitate to give me a call.

Very truly yours,



J. Jackson Suddath, Jr.

'cc: ,ene Heath








Alexander Grannt MAR 1 o1982 L
A COMPANY MEMBER FIRM
CERTIFIED PUBLIC ACCOUNTANTS GRANT THORNTON INTERNATIOt








Honorable Chairman and Members of the
Board of Directors
Southwest Florida Water Management District

Honorable Mayor and Members of the City Council
City of New Port Richey, Florida

Honorable Chairman and Members of the
Board of Directors
West Coast Regional Water Supply Authority

We have applied certain agreed-upon procedures, as dis-
cussed below, with respect to the Costs of Facilities Within the
Starkey Wellfield as of February 12, 1982, set forth in the accom-
panying Summary of Costs of Facilities Within the Starkey Wellfield
and supporting exhibits. The agreed-upon procedures were applied
solely to assist you in connection with the proposed Water Transfer
and Management Agreement for Starkey Wellfield. It is understood
that this report is solely for your information and is not to be
referred to or distributed to anyone not a member of management of
the signatories to the proposed Water Transfer and Management Agree-
ment for Starkey Wellfield. The agreed-upon procedures we performed
are as follows:

A. Payments to Contractors

We examined the final draw requests from contractors to support
the costs of items detailed in Exhibit I. The items detailed in
Exhibit I represent the components physically constructed within
the geographic property line of the Starkey Wellfield. The
determination of which components were physically constructed
within the geographic property line were provided to us by man-
agement of the City of New Port Richey, Florida. We have relied
solely on their representation and have performed no procedures
to verify the accuracy of such information.


POST OFFICE BOX 3068 TAMPA. FLORIDA 33601 (813) 229-7201






B. Engineering Fees


1. We examined the invoices from Black, Crow & Eidness, Inc.
(now CH2M Hill, Southeast, Inc.) to support direct engineering
fees for design and construction of the facilities. Such in-
voices related directly to specific contracts.' Such direct
engineering fees were allocated to the Starkey Wellfield by the
City on the basis of payments to the contractor for items within
the wellfield to total payments to the contractor. We recalcu-
lated such allocation for arithmetic accuracy.

2. We examined the invoices from Black, Crow & Eidness, Inc. to
support indirect engineering fees for services not specifically
related to any individual contractor. Such fees were allocated
to the Starkey Wellfield by the City on the basis of total pay-
ments to contractors for items within the wellfield to total
payments to contractors for the entire project. We recalculated
such allocation for arithmetic accuracy.


C. Other Direct Costs

We examined vendor invoices in support of other direct costs as
presented by the City in Exhibit III.

D. Net Interest Cost During Construction

1. We compared interest payments during the construction period
(defined by the City as the period from November 21, 1972 to
June 30, 1975) as presented by the City in Exhibit IV to the
debt service schedule for the $1,650,000 principal amount of
Water and Sewer Revenue Certificates, Series 1972. We compared
the amount of accrued interest collected from the purchaser at
closing of the above Revenue Certificates to the closing docu-
ments. We recalculated the accrued interest for the period
March 1, 1975 to June 30, 1975.

2. We compared interest earnings in the City's construction
fund as presented in Exhibit IV to the City's general ledger
for the respective periods. The City deposited $178,230 of
revenue certificate proceeds into its debt service sinking
fund. Such amount was commingled with other funds. The City,
for purposes of this report, has assumed such funds earned 5%
simple interest during this period. We recalculated the
interest earnings on the $178,230 at a 5% simple interest rate
for the construction period defined by the City.

3. We recalculated the allocation of net interest costs during
construction to the Starkey Wellfield costs. Such allocation
was made by the City on the basis of total direct costs allo-
cated to the Starkey Wellfield to total direct costs of the
entire project.






E. Bond Discount

1. We compared the $33,000 bond discount to the closing docu-
ments for the $1,650,000 Water and Sewer Revenue Certificates,
Series 1972.

2. We recalculated the allocation of bond discount to the
Starkey Wellfield Costs. Such allocation was made by the City
on the basis of total direct costs allocated to the Starkey
Wellfield to total direct costs of the entire project.

F. Bond Issuance Costs

1. We examined invoices in support of bond issuance costs pre-
sented by the City in Exhibit V.

2. We calculated the allocation of bond issuance costs to the
Starkey Wellfield Costs. Such allocation was made by the City
on the basis of total direct costs allocated to the Starkey
Wellfield to total direct costs of the entire project.

G. Original Project Costs from O & M Fund

We examined vendor invoices in support of original project cost
paid from the operations and maintenance fund as presented by
the City in Exhibit VI.

H. Improvements Subsequent to Project Completion

We examined vendor invoices in support of improvements purchased
subsequent to the completion of the Starkey Wellfield as
presented by the City in Exhibit VII.


Because the above procedures do not constitute an examina-
tion made in accordance with generally accepted auditing standards,
we do not express an opinion on the Summary of Costs of Facilities
Within the Starkey Wellfield and supporting exhibits. In connection
with the procedures referred to above, no matters came to our atten-
tion that caused us to believe that the amounts presented by the
City might require adjustment. Had we performed additional proce-
dures or had we made an examination of the financial statements in
accordance with generally accepted auditing standards, other matters
might have come to our attention that would have been reported tc
you. This report relates only to the items specified above and does
not extend to any financial statements of the City of New Port
Richey, Florida, taken as a whole.




Tampa, Florida
February 12, 1982






City of New Port Richey, Florida


SUMMARY OF COSTS OF FACILITIES WITHIN STARKEY WELLFIELD

February 12, 1982


From Construction Fund
Direct costs
Payments to contractors
Acquisition of land
right of way
Engineering fees
Other direct costs
Total direct costs

Indirect costs
Net interest cost
during construction
Bond discount
Bond issuance costs
Total indirect costs


Total Project
W.S. FLA 227
Expenditures

$1,612,163.30

9,587.55
158,097.35
23,736.66
1,803,584.86


123,225.22
33,000.00
25,826.09
182,051.31


Costs of original project
from Construction Fund $1,985,636.17

From Operations and Main-
tenance Fund
Costs of original project
from Operations and
Maintenance Fund

Improvements subsequent to
project completion


Exhibit I


Exhibit II
Exhibit III



Exhibit IV

Exhibit V


Exhibit VI


Exhibit VII


TOTAL COST OF FACILITIES
WITHIN STARKEY WELLFIELD


Starkey
Wellfield
Costs


$320,130.95


39,300.96
1,768.39
361,200.30


24,678.06
6,608.84
5,172.13
36,459.03


397,659.33




3,402.01


21,272.65


$422.333.99






EXHIBIT I


City of New Port Richey, Florida

PAYMENTS TO CONTRACTORS FOR FACILITIES
WITHIN STARKEY WELLFIELD INITIAL CONSTRUCTION


A. O. DUNLOP AND SON


Project No. 121-71-01-Part I
3 Water Supply Wells Drilling,
casing and test pumping (Wells
W-l, W-2 and W-4)

Project No. 121-71-01-Part II
2 Observation and Monitor Wells -
Drilling, casing and test pumping

Total A. O. Dunlop and Son


$40,940.50



13,903.00


$ 54,843.5C


SMITH-SWEGER, INC.


Project No. 121-71-02
30" Ductile iron pipe 13,290 L.F.
@ $26/L.F.; 3,525 L.F. from wells
to property line
12" Cast iron pipe Well #3 333 L.F.
@ $13/L.F.
8" Cast iron pipe Well #3 25 L.P.
@ $10/L.F.
Restrained joints 30" 5 @ $500 ea.;
2 within wellfield property line
30" Butterfly valve/box
8" Gate valve/box 5 @ $300 ea.
2" Air release valve complete 9 @
$400 ea.; 2 within wellfield property
6" Blow-off outlet and assembly
6" C.I. pipe for blow-offs 15 @ $5 ea.
Stabalize roadway and shoulders 9,569
L.F. @ $1/L.F.; 3,525 L.F. within
wellfield property line
Timber bridge for access road
Polyethylene encasement for 30" water
main 2,400 L.F. @ $.60
Remove and replace unstable or organic
material with suitable backfill material
246 C.Y. @ $5/C.Y.
Various fittings complete with reaction
blocking 10.3 tons @ $3,000 per ton;
engineer estimate 50% within wellfield


91,650.00

4,329.00

250.00

1,000.00
4,400.00
1,500.00

800.00
2,100.00
75.00


3,525.00
18,000.00

1,440.00


1,230.00


15,000.00


Total Smith-Sweger, Inc.


145,299.0(







City of New Port Richey, Florida


PAYMENTS TO CONTRACTORS FOR FACILITIES
WITHIN STARKEY WELLFIELD INITIAL CONSTRUCTION


MERIDITH CORPORATION


EXHIBIT I
(Continued)


Project #121-73-04
3 Deep well vertical turbine pumps,
700 g.p.m., complete with electric
motor, discharge piping, meter and
appurtenances
Furnish and install valves, meter and
appurtenances on Well #3
Furnish and install metallic well house
for each well unit including slab 4 @
$4,700 ea.
Furnish and install electrical power
system for three new wells and move
electrical system for Well #3 to new
well house
8" Ductile iron pipe 2,995 L.F. @
$8.60/L.F.
8" Mech. joint gate valve and box 3 ea.
@ $300/ea.
Furnish and install ductile iron fittings
complete with reaction blocking .055
tons @ $1,510/ton
Construct transformer pads 4 @ $200/ea.
Furnish and install 2" air release valve
and enclosure 2 @ $555 ea.
Furnish and install buried wellfield
control cable in common ditch with
junction boxes. 9,924 feet @ $2.10/ft.


$28,101.00

4,728.00


18,800.00


18,869.00

25,757.00

900.00


83.05
800.00

1,110.00


20,840.40


Total Meridith Corporation

TOTAL PAYMENTS TO CONTRACTORS
FOR FACILITIES WITHIN
STARKEY WELLFIELD


119,988.45



$320.130.95





EXHIBIT II


City of New Port Richey, Florida

ENGINEERING FEES ALLOCATED TO
CONSTRUCTION OF FACILITIES WITHIN STARKEY WELLFIELD


Direct
Engineering Fees


Total
Contract
Price


Within
Starkey
Wellfield


Total
Engineering
Fee


Engineering
Fee
Allocated


Contractor


Contract 121-71-01
A.O. Dunlop and
Son $ 54,843.50

Contract 121-71-02
Smith-Sweger,
Inc. 677,219.00


Contract 121-71-03
Christopher Con-
struction
Company

Contract 121-71-01
Boyce Company

Contract 121-73-04
Meridith Corpora-


tion


$ 54,843.50



145,299.00


575,385.30


184,727.05


119,988.45


Total direct
cost $1612,163.30


119,988.45


$320,130.95


$ 12,970.99



45,230.22


44,626.15


14,568.26


13,295.86


130,691.48


$12,970.99



9,704.25


13,295.86


35,971.10


Indirect
Engineering Fees


Engineering report for water and sewer
system improvements


Rate study


Miscellaneous consulting

Total indirect engineering fees to
be allocated

Allocation of indirect engineering
fees $320,130.95/$1,612,163.30

Other
Engineering Fees

PL 660 Grant application including
environmental assessment

TOTAL


5,053.47

2,670.54


9,045.03


16,769.04


3,329.86


10,636.83

$158,097.35 $39,300.96


119,988.45







EXHIBIT III


City of New Port Richey, Florida

OTHER DIRECT COSTS OF FACILITIES
WITHIN STARKEY WELLFIELD


Payee

Aripeka Limerock

Florida Crushed Stone

Florida Power Corporation

Southern Culvert


Description

Material for access road

Material for access road

Testing wells

140 L.F. 16 ga. Galvanized
drainage pipe


TOTAL


Amount

$ 244.51

304.40

224.09


995.39

$1.768.39






EXHIBIT IV


City of New Port Richey, Florida

NET INTEREST COSTS DURING CONSTRUCTION PERIOD



Construction Period November 21, 1972 (Sale of Revenue Bonds) to
June 30, 1975 (Wellfield placed in service).


Gross interest cost on bonds for that period
Accrued interest collected at closing $(25,792.94)
Interest payment March 1, 1973 43,390.00
Interest payment September 1, 1973 43,390.00
Interest payment March 1, 1974 43,390.00
Interest payment September 1, 1974 42,608.75
Interest payment March 1, 1975 42,608.75
Accrued interest to June 30, 1975 27,885.00

Total gross interest cost


$217,479.5(


Interest earnings on unexpended bond proceeds
Construction Fund
November 21, 1972 to September 30, 1973
October 1, 1973 to September 30, 1974
October 1, 1974 to June 30, 1975

Revenue Fund $178,230 of Bond proceeds
were deposited in reserve fund at closing
November 21, 1972 to September 30, 1973
October 1, 1973 to September 30, 1974
October 1, 1974 to June 30, 1975


47,245.03
21,244.05
2,528.22



7,641.92
8,911.50
6,683.62


NET INTEREST COSTS DURING
CONSTRUCTION PERIOD


(71,017.3(





(23,237.0,

$123.225.2:







EXHIBIT V


City of New Port Richey, Florida

BOND ISSUANCE COSTS


Payee


Purpose of Expenditures


Brinks
Moody's Investors
J. S. Baillie
Reynolds Securities
First National Bank
New Port Richey Press
St. Petersburg Times
New Port Richey Press
Water and Sewer Revenue
Fund
First National Bank
E. Miller Newton
Allgood, McPherson & Cobb
Mudge, Rose, Guthrie &
Alexander


Transport bonds
Bond fee
Accounting
Consultant fee
Handling fees
Public Notice
Public Notice
Public Notice

Advertising
Handling fees
Escrow fees
Legal service


Bond Counsel


TOTAL


Amount

$ 102.68
850.00
750.00
14,486.29
332.00
18.90
48.85
8.40


17.06
176.50
17.30
5,500.00


3,518.11

$25,826.09






EXHIBIT VI


City of New Port Richey, Florida

COSTS OF ORIGINAL PROJECT FROM
OPERATIONS AND MAINTENANCE FUND


Contractor

- A. O. Dunlop and Son
Project No. 121-71-06

Black, Crow & Eidness
Project No. 121-71-06


Description

6" Test well drilling
and installation

Engineering fees for 6"
test well


TOTAL


Cost


$2,492.0C


910.01

$3.402.01


"' -- .._, ..._






EXHIBIT VII


City of New Port Richey, Florida

IMPROVEMENTS SUBSEQUENT TO PROJECT COMPLETION


Date

Well #1

1/13/77

1/13/77

8/30/78
1/17/79
2/26/79
8/ 8/79

8/16/79

Well #2

3/12/80


Well #3

6/28/79
4/27/79
11/15/79


Improvement Description


1-Ford Industrial Diesel power unit,
Model 192
1-Amarillo Model C20 Gear drive and
drive shaft
Pull and reinstall 20 H.P. pump and motor
Repairs to Well #1 as per quote 10/12/78
Repair pump shaft
Remove and rebuild 20 H.P. Worthington
pump
Repair to shaft


Repair 10H-75 2-stage bowl and replace
worn parts


Rebuild 100 H.P. electric motor
Pull and rebuild 12 MB 6-stage pump
Rewind 100 H.P. electric motor


TOTAL


Cost


$ 3,859.70

1,915.00
600.00
5,283.80
394.05

2,355.00
192.60


1,943.72


873.95
2,558.33
1,296.50

$21,272.65




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