Okaloosa County BOCC — May 20, 2014 — Action Item Printout — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: May 20, 2014 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Future Water Supply Land Acquisition Program Update DEPARTMENT: Water and Sewer BCC DISTRICT: All STATEMENT OF ISSUE: Staff is providing an overall update to the Board on land acquisition related to future water supply planning. OCWS is requesting approval from by the Board to move forward with the Shoal River Reservoir Land Acquisition with funds freed up by grant funding that has been obtained. BACKGROUND: On December 3, 2013, staff provided the Board with an overall update on future water supply planning efforts and obtained permission to move forward with the Shoal River Buffer Land Acquisition. That Agenda Request, along with supporting documentation is attached, for your review. Since that approval, staff has been hard at work with the many moving parts. Progress has been made on the following: 1) identified the parcels to purchase, 2) obtained an asking price from the seller, 3) coordinated with other agencies such as Eglin AFB, AFCEC (Air Force Civil Engineering Center), Northwest Florida Water Management District (NWFWMD) , and Enterprise Florida Inc., 4) retained attorney (Nabors, Giblin, Nickerson) and worked closely with them on items like the Restrictive Use Easement, and 5) secured agreements for fourth phases of REPI (Readiness & Environmental Protection Integration) and DIG (Defense Infrastructure Grants). We are now moving forward with surveying (with in-house crews), environmental work, and appraisals. Because the actual purchase acreage is dependent upon available funding, appraised values, and negotiations, we are having more land appraised than what may actually be purchased. Upon completion of the initial appraisal, staff will negotiate with the property owner and bring back a contract to the BCC for approval and execution. If/when we are under contract, the appraisal would be updated to the exact acreage we intend to close on. At the May 5, 2014 meeting, the Board approved a Grant Agreement with the NWFWMD for the Mid-County Elevated Tank #4 project, related to water supply in our Mid County Service Area (unincorporated Crestview). Because of this grant funding, there is now additional money available in the Water & Sewer 5-year Capital Improvement Plan (CIP). Staff is recommending to utilize the funding freed up by the grant, along with other DIG funding, to move forward with the Shoal River Reservoir Land Acquisition. Please note that the above-mentioned update in the first two paragraphs is for the Shoal River Buffer Land Acquisition; where the primary purpose is buffering for the Eglin Mission and the secondary purpose is watershed protection and potential wetlands mitigation. On this proposed Shoal River Reservoir Land Acquisition, the primary purpose is future water supply, and a secondary purpose is buffering. The Shoal River Reservoir Land Acquisition involves purchasing land from multiple property owners for the future construction of a reservoir, surface water treatment plant, roadways, pipelines, and other related infrastructure. Nabors, Giblin, Nickerson has been retained as the real estate attorney to manage the closing and ensure all local and state requirements are met. The following are the recommended steps to move forward with the Shoal River Reservoir Land Acquisition: - Obtain asking prices from property owners. - Obtain land appraisals in conformance with State Statutes. If the purchase price is expected to be over $500,000 for a parcel, 2 appraisals are required per F.S. 125.355. - Staff to negotiate with property owners and sign Option contracts (each contract will be brought back to BCC for approval & execution). - During contract period, survey would continue along with title work, title insurance, addressing any liens and encumbrances such as utility easements and mineral rights, and other due diligence. - Coordinate funding from REPI and DIG grants and OCWS sources. - Closing. Note that property purchased under the Shoal River Buffer Land Acquisition project will have a Restrictive Use Easement on it, but land purchased under this Shoal River Reservoir Land Acquisition project will not have a Restrictive Use Easement on it. - Staff will also negotiate with multiple property owners for easements related to utilities or access. If any payments are required for these easements, they will be brought to the BCC individually for approval. In moving forward with this process, OCWS assumes the financial risk of any expenses, should we not close on the property. These expenses are minimal compared to the benefit and value of the land to be purchased. Regarding the multiple property owners, staff may bring multiple "Option to Purchase Real Estate" contracts to the BCC for approval and execution at different times; however, we plan to close on all properties on the same day. Please note that, because we may be beginning the early stages of negotiating a land purchase, the dollars, acreage, and property owner names are not being publicly disclosed at this time. This process is very similar to the process the State goes through when purchasing land. OPTIONS: Approve or deny. RECOMMENDATIONS: OCWS staff recommends BCC approval for OCWS staff to move forward with the Shoal River Reservoir Land Acquisition activities as outlined above. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator