Oviedo CRA approves interlocal agreement and budget reallocations to move Connector Road project forward

The Oviedo Community Redevelopment Agency on Feb. 17 approved an interlocal agreement with the City of Oviedo to advance construction of the Oviedo Connector Road, reallocate $840,000 in CRA funds to the roadway and pedestrian bridge, and use sewer impact fee (wastewater capital recovery) funds to pay for an upsized sewer lift station.

The vote followed a staff presentation and extended discussion about bids that came in above the CRA’s budget, how the lift station work qualifies for wastewater capital recovery charges, and the cost of a pedestrian bridge that will connect the road to Solari Park.

Why it matters: The decision lets the city proceed with construction procurement and shifts funding across accounts so the road and park connection can be built while the sewer capacity upgrade is paid from the sewer impact fee fund. Board members questioned whether moving pipe and relocation work should remain CRA-funded and pressed staff on whether the financing raised legal or rate concerns for existing sewer customers.

Staff summary and funding changes

Mr. Cobb, a CRA staff member, told the board that earlier design and preliminary agreements cover route and cost estimates and that the most recent bids were higher than the CRA budget. He said staff found money in the City’s sewer impact fee account because the lift station portion upsizes system capacity and therefore is eligible for wastewater capital recovery charges. He described the recommended approach as moving the lift-station expense into the sewer impact fee fund and reallocating previously allocated CRA dollars into the roadway and pedestrian-bridge components.

Cobb said the staff package also included a budget amendment recognizing roughly $40,000 in interest income and a $2,300 intra-project accounting move for the Wood Street project. To close a remaining shortfall on the Connector Road project, staff proposed reallocating about $55,734 from other CRA projects (Franklin Street) in addition to the $840,000 reallocation to fully fund the road and bridge.

Discussion: who pays, and why costs rose

Board members and city officials asked detailed questions about eligibility, cost drivers and scope. Councilman Ott asked for an explanation of “wastewater capital recovery charges,” and staff clarified these are charges developers pay to secure sewer capacity and are treated like an impact fee for capacity expansion.

Mayor Slade asked whether existing users would see rate increases; Slade was told existing customers would not be affected in the way that would raise rates: "Nobody who's already in the system would be impacted by whatever money is gonna be coming out of the 409 fund; this is not gonna cause anybody's rates to be raised," the staff response indicated during the discussion.

Board member Slattery pressed on overall cost, saying, "I cannot believe this road costs $4,800,000. It's not even a mile," and questioned the roughly $401,000 price for the pedestrian bridge. Staff and other members explained the bridge includes decking, landscaping, pavers and park elements to match the nearby Solari Park and must meet FEMA regulatory-floodway elevation requirements where it crosses the creek. Staff also noted a 10% contingency is included and said they would closely monitor the contingency and return unused contingency funds to the CRA.

On whether relocation of the lift station and moving sewer pipe could be split between funding sources, staff and a technical advisor (Wyatt, staff member) explained the construction is treated as a single integrated project: the lift station cannot simply be built "on the same side" and then expanded in place, and the new lift-station equipment qualifies as a capacity expansion eligible for the sewer impact fee fund. Board members sought, but did not require, a formal amendment to parse relocation costs between CRA and fund 409.

Board action and immediate next steps

After discussion the board voted to adopt the interlocal agreement that recognizes the City will manage procurement and construction while the CRA funds the roadway and bridge and the sewer impact fee fund pays for the upsized lift station. The motion passed (voice vote).

Staff indicated the city will proceed to award construction contracts and that CRA staff will reallocate budgets as presented. A budget amendment to recognize interest income and move the remaining Franklin Street funds into the Connector Road project was also approved earlier in the meeting.

Votes at a glance

- Election of chair and vice chair: Dave Axel was re-elected chair (4 votes to 3 for the alternative nominee); Deputy Mayor Tooker was appointed vice chair by acclamation after nomination and second. - Approval of minutes (Nov. 18, 2024 regular session): motion passed by voice vote. - Resolution (budget amendment recognizing interest income and intra-project adjustments, referenced in the staff memo as part of the packet): motion passed by voice vote; staff cited recognition of approximately $40,000 in interest income and a $2,300 intra-project move for Wood Street. - Resolution (interlocal agreement and associated budget reallocations for Oviedo Connector Road and related projects): motion passed by voice vote; staff will reallocate $840,000 into the Connector Road and bridge and move lift station costs to the sewer impact fee fund, with an additional $55,734 moved from Franklin Street to close the shortfall.

What remains pending

Staff said construction procurement is next and the city will manage contract award and construction administration under the interlocal agreement. The board asked staff to monitor the 10% contingency closely and return unused contingency to CRA funds when possible. A possible CRA meeting is scheduled for March 17, 2025 if additional items arise.

(Reporting note: quotations and attributions come from the Feb. 17 hearing transcript of the Oviedo Community Redevelopment Agency Governing Board.)