Board members of Riviera Beach’s Utility Special District took a significant step on Wednesday night. They decided to commence the process of selling $400 million in revenue bonds to finance the construction of a new water treatment facility. This decision comes as the existing 66-year-old plant has long surpassed its useful life and has faced numerous issues.

Riviera Beach's Utility District Takes Bold Step in Water Treatment

Procedural Vote but Crucial for the City

The 4-1 vote, with Board Member Tradrick McCoy objecting due to concerns about the city's debt policy, was a procedural yet highly important milestone. The city has been looking to replace its aging water treatment plant for decades, and this vote marks the beginning of a significant undertaking.

As the Florida Department of Health and the Palm Beach County Office of Inspector General issued damning reports highlighting violations of re-testing, reporting, and transparency rules, there were doubts about whether the utility board members would be willing to start the bond process. However, ultimately, they chose to keep the project moving forward.

Cost of the New Plant Has Soared

In May 2019, board members authorized the sale of $115 million in revenue bonds for a new water treatment plant. But since then, the cost estimates have skyrocketed to $400 million. Finance Director Randy Sherman informed board members that they will have another chance in April to decide whether to sell the bonds and determine the required bond amount.

The increase in costs is attributed to construction costs and inflation. Board Member Glen Spiritis emphasized that by taking the time to reach this point, the price of the water plant has likely gone up by over $100 million, perhaps even $150 million. He is glad to see the project moving forward and looks forward to a new water plant in 2027.

Multiple Funding Sources Considered

While the bonds will be backed by water and sewer revenue and likely lead to a significant increase in rates, the city is also exploring state and federal assistance to offset costs. Development impact fees may also be used to reduce the bond money needed for the new facility.

A new rate study is expected to be completed by the end of the month or early December, and board members will be able to consider a new rate structure in January. The city's water customers have already seen higher rates due to the need for a new water treatment facility and to address issues with the current plant.

Inspector General's Report and Its Impact

Since January, water has been the most pressing topic in Riviera Beach. The utility's late reporting of a positive E. coli test and its failure to properly re-test samples drew harsh criticism from the Florida Department of Health and the Palm Beach County Office of Inspector General.

The OIG report revealed that the utility's former compliance director altered test results, allowing some wells to remain in service. A special meeting to discuss the report has not been scheduled yet. The city has already paid about $80,000 in fines and fees, and residents may face additional costs. The utility is taking steps to improve water quality and testing procedures, including having staff sign a pledge and considering requiring sample collectors to wear cameras.

Mayor's Criticism of the City Manager

Mayor Ronnie Felder made his dissatisfaction with City Manager Jonathan Evans clear on Wednesday night. He believes the city manager should be held accountable for the problems of the water utility.

Felder emphasized that when an organization is led and people are in place but things go wrong, the leader is responsible. Despite not having the authority to make a motion, Felder has played a significant role in calling for the OIG investigation and urging residents not to drink the water.

Utility Board Member's Defense of the City Manager

Utility board member Shirley Lanier criticized the mayor's position on drinking water and defended Evans. She pointed out that while no one is perfect, Evans has overseen various development and infrastructure projects during his time as city manager.

She commended the efforts to move the city forward and address the water issues. The water woes in Riviera Beach have presented additional challenges for Evans, who has had a complex tenure as city manager.