Fort Walton Beach Council minutes — 10-12-1999 Joint — reading text

115 A joint meeting of the City Councils of the City of Fort Walton Beach, the City of Mary Esther, Florida, and the Okaloosa County Commission was held on Tuesday, October 12, 1999 at 9: 00 a.m. in the Water and Sewer Administration Building, I Lewis Turner Blvd, with the following members present: CITY OF FORT WALTON BEACH Mayor Glenda Glover COUNTY COMMISSION CITY OF MARY ESTHER Mayor Del Dunn Councilmen: Commissioners: Councilmen: Clay Camatban Nick Nicholson, Chairman Michael Thompson Janet Baggett Bill Harrison Russ Young Jim Dowling Kathie O'Dell Ronald Steams Jim Tucker Paula Riggs George Crews Dean Covey Ray Sansom Chuck Kelley Absent: Margie CoUins Don Abrams Also Present: City of Fort Walton Beach: Reid SilvetOOard, City Manager, Helen Spencer, City Oerk; Joyce Shanahan, Finance Director; Mark Van Ha1a, Public Works Director. County Commission: Chris Holley, County Manager; Jeff Littrell,Director Water & Sewer System. City of Mary Esther: John Lulue, City Manager; Laura Houchens, City Clerk. Commissioner Nicholson called the meeting to order and welcomed everyone. The purpose of the joint meeting is to discuss mutual concerns regarding water and sewer issues, and waste water tteatment Mr. Holley reported there have been conversations with the City on the sewer issue, a working paper from the City of Fort Walton Beach was received outlining some points and positions, and there was a meeting with DEP yesterday to discuss dual related issues. He reported regarding the water issue a draft Interlocal Agreement to route water to the Cities of Mary Esther and Fort Walton Beach and a response to that Agreement was received but there bas not been a meeting to go over some of the issues raised by the Cities such as the rate proposed for water by the County and the amount of water available. Mr. Littrell reported the staff of the City of Fort Walton Beach and Okaloosa County, along with a consultant engineer, met with DEP yesterday in Tallahassee to discuss DEPs questions and concerns about the proposed Interlocal Agreement for diversion of wastewater. o;,! if = ~' "" -=. """" ~ ~ \ I I: '" '" ~ * ~ ~ Mr. Littrell ~ e a swnmary of activities that have occurred since 1995 on the County' s efforts toward an alternative water supply development, and a brief update on the study of the Floridan Aquifer and the Central Sub-Region Working Group discussions of modeling requirements for Consumptive Use Permits. Commissioner Nicholson mentioned the County will build a pipeline and it needs to be determined how everyone will benefit or participate in that Mr. Silvetboard mentioned a couple of fundamenta1 issues that need to be addressed The Cities have been told that the water produced from the six wells that will be produ<: ed by the County is necessary to meet the CountYs demands dining the next 20 year period, and in addition it is to meet some of the demand the County win have as a result of the Water Management District requiring they reduce their withdrawal from wells in the south County area. It has always been the City's understanding that the corridor wells would be the wells that would supply water for users in the South County area, Fort Walton Beach and Mary Esther.  10-12- 99 116 IALT&RNAti. WA1USDl'fLY. C01'lT~ He said the fundamental issue is who " ill be the water supplier and he believed at the joint meeting a year ago the impression was given that the County Commission had not said they were going to be the water supplier, that they were open to discussion of that issue. He said subsequently they have run into a disagreement at staff level that the staff of Okaloosa County is saying the County Commission has made a determination they are going to be the water supplier, that any water placed into that pipeline would have to be produced by the County, that the County has no problem with supplying the Cities with however much water they need He said the issue of the County and Cities getting enough from the pipeline has really never been the issue or subject of disagreement He said the issue of whether or not the County is going to be the sole supplier of water has been a subject of disagreement because the City Council of Fort Walton Beach has never been formally advised of the fact that that is the position of the County Commission. There has never been a fundamental agreement that the County is going to be the water supplier and that Fort Walton Beach and Mary Esther would be purchasing water from the CoWlty under that type of an arrangement. He said that is one of the fIrst things that needs to be settled, is that the way it is, that the County is the supplier and the Cities and any other customers would be purchasing water from the County. He said that is one fundamental issue that needs to be put on the table and resolved. Commissioner Nicholson recalled when the discussions started there was concern, particularly from Mary Esther, there was a potential the water needs may be accelerated because of salt- water intrusion. He said he thinks the intent is to provide water to all the citizens of Okaloosa County and how that is developed will be a difficult process to go through to detennine. He said there has been mixed emotions on ownership from both the Cities and the County. He asked why it is important that the Cities have joint ownership. Mr. Lulue said both of the Cities have established infrastructures that have been there for quite a while, most of it is paid for and as such the cost of producing the water is relatively inexpensive, and there will be construction costs associated with the County, so that greatly increases the cost of their own infrastrocture in addition to paying for new infrastructure when they do not know now if they need the water. If they do need the water, their prima:ry concern is finding an alternate water supply and the cost to the City. Mr. Silverboard said their initial intent was to have some type of ownership in that expanded size of pipe and the concern is that the pipeline will be marginal. They were initially looking at the idea that the six wells around Crestview would meet the County' s needs and the Cities did not want to interfere with that in any way but that the corridor weUs, which is where the Cities would potentially get their water, the Cities felt they should have some say in that and suggested some sort of consortium be put together in terms of the development of those corridor wells, if and when they are needed. He said the biggest problem is no one knows when they will need the water, or if they will need the water in the south end. Mr. SilveIboard said the two fundamental issues are the pipeline and the supply of water. He said the pipeline issue is just making sure the pipeline is large enough but once that is settled it is where then do they get the water. He said the City has always understood the County is willing to have the City participate in the construction of the pipeline, and they can still work out the details of reserving capacity and ownership of the pipeline. He said the second part is exactly where does the water come from that is put into it. He said from his standpoint the County' s position has always been that any water that goes in it will be coming from the County, that the CoWlty has a responsibility to make sure that the quality of the water meets minimum quality standards, and the City did ask for a second option of just purchasing. He said the City never intended to abandon the approach of the City owning the pipeline, that has always been an option the City thinks they need to fully explore, discuss and compare that to the option of being a water customer and make a decision. Mr. Silverboard stated the County has a permit to build six wells, they need the water and need to proceed, they have most of the permission needed to put a pipeline from the north end down to the south end of the County. He said the Cities are concerned on a variety of standpoints. One, if the Cities choose not to join the County at this time in tenDS of ownership within that pipeline, then when the County does the design they place the pipeline within the easement granted by Eglin in such a way so that in the future if there needs to be additional pipelines that there is sufficient room within that easement to accommodate one or more additional pipelines. He understands it is expensive to do, but that expense would be borne by the customer at that point in time that it is needed, as opposed to the City's customers having to pay for fIve, ten, or fifteen years worth of cost without deriving any direct benefit from it if they do not need the water coming from that pipeline. He said it is an extremely complicated issue they have all been struggling with,and what they are really trying to do is fIguring out what is the best for their individual citizens, where can they gain some assurance that the City bas a plan for providing the water in the future when it is needed, and can it be provided in a relatively timely manner at the time it is needed. He believed what the two Cities need to know is, does the County have an interest that if an option for future water supply, for the water itself, in simply being the one that will sell the City water or does the County have an interest in forming a consortium, a partnership that, at the time when it awears that water is going to be needed, they will then develop the corridor wells jointly as a source for water. He said that is a fundamental question that needs to be addressed by all the elected bodies so that staff has some direction from that standpoint  10- 12- 99 117 m;i?~ UTI~~~}~ 7~;=:~ J~ f~ Mr. Holley stated that the managers are trying to put all the information together so the Councils can make the right decision that is in the best interest of their customers, and they do not want to go in any particular direction until they receive as much information as they can and evaluate it then give it to the Councils. He said that someone still has to operate the system. test it,