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Winter Haven staff outline two new water production plants and funding path
Summary
City staff on May 26 presented designs and funding plans for two new water production facilities — a 6 MGD Pollard Road plant (expandable to 8 MGD) and a 1 MGD Cypress Wood plant (expandable to 2 MGD) — tied to growth, PRWC timelines and a future bond issuance; staff flagged rate-study work and legislative changes to nonresident surcharges.
City of Winter Haven staff on Tuesday detailed plans for two water production facilities meant to increase local supply and meet projected demand.
City manager Stavrez and project lead Mark Bombard presented the Pollard Road Water Production Facility, described as an initial 6 million gallons per day (MGD) plant expandable to 8 MGD, and the Cypress Wood Water Production Facility, planned at 1 MGD expandable to 2 MGD. Staff said the Pollard Road facility will replace the Winterset Gardens treatment plant and is sited to support industrial and commercial demand along Logistics Parkway and State Road 60.
"The plant will be originally a 6 MGD capacity with additional 2 to bring it to 8," Mark Bombard said, summarizing design and well plans. Bombard added the Pollard Road site will have three wells initially, with additional wells possible later.
Staff told commissioners the projects are time-sensitive because they are coordinated with the PRWC alternative water supply (AWS) schedule and associated deadlines. "We're gonna have some early out packages, to get the CMAR started before the design is 100% complete, to bring this project in on time," Bombard said.
The city summarized the proposed procurement and funding approach: both projects will be constructed via a construction manager at risk (CMAR) arrangement (Wharton Smith awarded through a competitive process), while design and engineering work will be performed separately (Atkins Reas for Pollard Road; Wright-Pierce for Cypress Wood). Professional services fees presented to the commission included a not-to-exceed $8,900,000 scope for Pollard Road (including CEI and 4th Street improvements) and a not-to-exceed $4,690,000 scope for Cypress Wood.
Staff also explained a cap tied to design fees: the Pollard Road contract language limits engineering fees to no more than 11% of the CMAR 30% cost estimate. "If the fee for design exceeds 11% of the CMAR's 30% cost estimate," staff said, the city retains the ability to renegotiate the fee under the contract terms.
On financing, staff said a water and sewer bond issuance is anticipated within the next six to 12 months to help fund these and other utility projects. Stavrez described a broad debt estimate discussed internally in the $100–110 million range to address multiple utility capital needs, but he did not present a final financing plan.
Commissioners pressed staff on rate impacts and a recent state law change affecting nonresident surcharges. Stavrez said recent legislation removed the automatic nonresident surcharge (historically 25%) for customers outside the city limits; as a result, the city has asked Raftelus to perform a new rate study. "Your ability to apply that surcharge is temporary, and you have to revisit that on a regular basis," Stavrez said, and staff indicated an implementation target of Jan. 1, 2027 for any rate changes, subject to the study and required notices.
Staff said the combination of connection fees, rate revenues and planned borrowing will be used to support construction and debt service, and that the city will continue to time bond sales to market conditions.
Next steps: the design task orders will come to the full commission on Tuesday for consideration, and staff will return with the Raftelus rate study and specific financing recommendations as those analyses are completed.
