Ocoee staff warn county changes to reclaimed-water terms could force big spending or steep rate increases

City Manager Cedric Shadrick told the Ocoee City Commission on March 4 that Orange County plans to change terms for wholesale reclaimed water purchases in a way that could significantly raise the city’s costs and require new storage and treatment infrastructure.

Shadrick said the city currently buys about 2,100,000 gallons per day of wholesale reclaimed water from Orange County at 61 cents per gallon. He said county conditions to keep a lower rate would require one-day storage and a 2,100,000-gallon backup tank to supplement peak flows — and that without those structures the city’s wholesale cost could rise to $1.57 per gallon by Oct. 1. "In order for us to meet the county's demand for a backup supply, we will be required to build, construct and permit a well ... the cost on the infrastructure needed to meet their backup demands, is the startup was between 4 and a half and 5,000,000," Shadrick said.

Why it matters: the reclaimed-water program currently helps offset operating costs for irrigation customers and is part of the city’s conservation strategy. Shadrick said the proceeds from reclaimed-water sales "help pay for the operations and maintenance of the reclaim program," and that a sudden wholesale price increase would materially affect the utility’s fund balance and customer rates.

Commissioners and staff discussed options being explored. Shadrick said staff has asked Orange County for more time because design and permitting cannot be done by the Oct. 1 deadline, and said the county’s new terms also raise permitting questions — including another consumptive-use permit from "St. John's," as discussed in the meeting. He added that staff had contacted nearby Winter Garden about surplus alternative supply and that other short-term policy approaches (such as temporary watering restrictions) had been rejected by the county.

Resident Chris Adkins addressed the commission in public comment, pointing the commission to an earlier city plan: "The city of Ocoee did a reclaimed water feasibility and capacity plan in 02/2015," he said, and urged commissioners to consider reclaimed-water demand from planned developments when weighing responses.

Shadrick said staff would return with options and additional briefings. "We will be bringing back some options based on our continued discussions about this matter," he said.

Ending: City staff said they will continue negotiations with Orange County, vet possible temporary supply agreements and report back to the commission with options and recommended next steps prior to the county’s Oct. 1 deadline.