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Utilities staff outlines reclaimed-water expansion; city will seek willing customers rather than mandate connections
Summary
Public utilities staff told council the city plans to expand reclaimed-water distribution to use excess capacity from wastewater plants and to pursue willing, high‑volume customers; staff said the city will not force connections under the current ordinance and outlined finance and construction options for future hookups.
City utilities staff on Wednesday outlined a multi‑year strategy to expand Fort Myers’ reclaimed‑water distribution to absorb excess treated effluent and create a lower‑cost irrigation option for high‑volume users.
Assistant Director Jason Chandra said the city will not force customers to connect under the current ordinance: "We are not going to force anyone to become customers of ours," he said. Instead, staff will target willing partners and high‑volume users and evaluate a city finance/construct/own approach that amortizes construction costs to customers over time.
Chandra said the city will invest heavily in its plants over the next five years — staff referenced roughly $400 million in planned utility investments to expand treatment and distribution capacity — and that the central facility expansion will create additional reclaimed‑water supply by about 2028. He said current reclaimed‑water rates are roughly $1.72 per 1,000 gallons (projected to approach $2/1,000 by 2028) and that the city currently distributes less than its average daily treatment capacity.
Options and tradeoffs: Staff offered two financing approaches: (1) city finance and construct the metering and pipeline and amortize the capital back to an individual customer (example: $1.5M capital for one large customer with annual repayment of roughly $120,000 at a 5% interest assumption), or (2) revise the ordinance and embed expansion costs into the reclaimed‑water rate to bond the improvements, which would increase per‑thousand‑gallon rates but allow broader up‑front financing.
Council questions focused on ensuring the city’s own uses are prioritized, interconnection costs to disconnected pipeline segments (e.g., MacGregor Boulevard and MLK lines), and the tradeoff between selling excess reclaimed water to Cape Coral under existing contract versus retaining more capacity for local customers.
Staff asked for direction to begin outreach to potential customers, run a survey of interested parties, and consider pilot finance models and outreach materials for homeowners associations and large users.
