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BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
DATE: November 20, 2012
TO: Honorable Chairman and Members of the Board
FROM: Jeff Littrell
SUBJECT: Town of Shalimar Interlocal Agreement
DEPARTMENT: Water and Sewer
BCC DISTRICT: 2
STATEMENT OF ISSUE: OCWS staff requests BCC approval for the Chairman to execute an
Interlocal Agreement with the Town of Shalimar to continue OCWS' franchise rights and the
collection of taxes.
BACKGROUND: On the monthly water and sewer bills, it is typical for OCWS to bill for other
items such as garbage (refuse, landfill, and recycling) and taxes for Multiple Services Benefit
Units (MSBUs). We have approximately 500 customers within the limits of the Town of
Shalimar. For these customers, we also bill the Shalimar City Tax, which is collected by OCWS
and remitted to the Town of Shalimar. See the attached example bill. Based on prior Interlocal
Agreements (which have expired) and the Town of Shalimar Ordinances, this tax is 10% of the
water consumption part of the bill. Five percent is deducted from the tax amount collected from
the Shalimar customers, as an administrative fee (same as collected for other 3rd party billing),
and the rest is paid to the Town of Shalimar monthly. Quarterly Shalimar newsletters are also
attached to the bills, and the extra cost is paid for by the Town of Shalimar.
OCWS and the Town of Shalimar have been operating under an Interlocal Agreement, executed
in 1996, which expired in 2011. This 1996 Agreement mainly pertains to OCWS' franchise
rights within the Town of Shalimar. A new Interlocal Agreement is now being proposed to
continue the terms and conditions of our franchise area in Shalimar and clearly memorialize the
5% collection fee. This proposed Interlocal Agreement, along with the approved County
Contract Coordination form, is attached for your review and consideration.
OPTIONS: Approve or deny.
RECOMMENDATIONS: Staff recommends BCC approval for the Chairman to execute the
Interlocal Agreement with the Town of Shalimar to continue OCWS' franchise rights and the
collection of taxes.
RECOMMENDED BY:
APPROVED BY:
James D. Curry, County Administrator