Lake Placid utility leaders outline 1MGD wastewater plant, grant uses and hookup policy amid cost, capacity debates
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Summary
Town staff described a $40 million DEP grant for a new 1 million gallon per day wastewater plant, plans to close and pipe previous plants to the new facility, rising construction costs, and a debate about whether to reserve plant capacity for existing lakefront homes or to sell capacity to developers.
Town staff and the Lake Placid regional utility presented the town’s wastewater project plan and funding history at the May 5 meeting, describing construction of a new 1 million-gallon-per-day (MGD) wastewater treatment plant funded by a $40 million grant from the Florida Department of Environmental Protection and outlining priorities for use of the plant’s capacity.
The presenter said the original grant application and resolution committed the town to use the money to upgrade treatment (advanced wastewater treatment tied to Basin Management Action Plan, BMAP, requirements), close two smaller plants (Tomoka and a County Road 29 plant) and collect sewer connections around the lakes to reduce septic impact. Staff described significant cost increases: initial plant cost estimates in early studies (roughly $15–$18 million) later rose to about $33 million, a change driven in part by nationwide supply and construction price increases. The grant agreement was amended to preserve the plant construction and allow further study of collection options after cost estimates changed.
Staff described grant-funded work already underway: the County Road 29 connection is under construction and will tie to a Conference Center lift station; the town intends to pipe and treat flows from Tomoka and County Road 29 at the new plant. Staff said the original grant included the design for collection lines to serve roughly 1,600 existing homes, but that expensive collection costs and the wide range of technical options (gravity, low-pressure or vacuum systems) mean the town will use engineering studies to determine the feasible approach for each neighborhood.
Key financial and technical details discussed: - Grant amount referenced: $40,000,000 (DEP) - New plant capacity: 1,000,000 gallons per day (1 MGD) - Current system: older plants and small plants (present capacity described as tens of thousands of gallons per day) and the Conference Center lift station capacity noted as a component of the system - Early plant cost estimate: $15–$18 million; later estimate: ~$33 million - Current system development charge (existing): $3,200 per connection; staff discussed a possible system development charge for new connections in the $10,000–$15,000 range (staff said $15,000 as a preferred target) - Example on-site advanced septic costs mentioned in public comment ranged from about $11,000 to $17,000 per system depending on site conditions
Staff and some board members recommended reserving the new plant’s capacity principally to serve existing homes around the lakes and to use grant funds to reduce connection costs for current residents rather than monetizing capacity by selling large blocks to new outside development. A council member’s alternate view — that selling capacity to developers could raise millions for the utility — was noted but staff said the grant agreement and the town’s commitments to DEP make selling a substantial share of capacity outside the plan area inadvisable without further review and explicit council approval.
Public comment reiterated multiple themes: long timelines to deliver collection lines, the high cost of hookups for homeowners, differences in neighborhood willingness to connect, and the political sensitivity of requiring or charging for hookups in lower-income areas. Staff said additional engineering analyses are needed — including the all-in cost comparison of gravity vs. low-pressure collection systems for specific neighborhoods and the lifetime maintenance costs of low-pressure pumps — before making connection policy decisions.
Staff asked the board to prioritize collection-line projects (examples: Green Dragon north, South Town, Conference Center north and Catfish Creek to serve canal systems) and to continue seeking state and federal grants to reduce connection costs to residents. No formal policy vote on hookup pricing or on monetizing capacity occurred at the meeting; staff will seek grants and return with engineering recommendations and proposed system development charges.
