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

demands of the Water Management District. Mr. Silverboard continued, saying it has always been the cities' understanding that the Florida wells will supply water in the south county in areas such as Fort Walton Beach and Mary Esther. Mr. Silverboard asked who is going to have the water October 12, 1999 - 2- Minute Book 43, Page 277 Board of County Commissioners Meeting  supply. He said there is a disagreement at staff level as staff is saying the county has made a determination they will be the water supplier and that the county has no problem furnishing water to the cities. staff is also saying that getting enough water from the pipeline has never been an issue. The problem is whether or not the county will be the sole supplier of water. The city of Fort Walton Beach has never been formally told the county will be the I water supplier and that Fort Walton Beach and Mary Esther will be purchasing water from the county under that type of arrangement. Mr. Silverboard said this is a fundamental issue that needs to be resolved. Mr. Nicholson said when the discussions began with RUA and the cities of Fort Walton Beach and Mary Esther there was potential that water requirements would be accelerated because of the possibility salt water intrusion to the city of Mary Esther' s of water supply. The intent was to provide water for all of Okaloosa County; however, how to go about this will be a difficult process as there are mixed emotions about ownership from both the cities and the county. Nicholson said his personal concern is to Mr. furnish water to all the cities that need water. He understands the difficulty the cities are having in making a decision without the modeling project being completed. By the same token, it is a roll of the dice on how one comes out on top and this could adversely affect everything. He said we could be told all the wells in south county will have to be moved further north. He wanted to know why is it important for the cities to have joint ownership. Mr. John Lulue, Mary Esther city Manager, said the cities already have infrastructure in place and the cost of producing water and new infrastructure is expensive. He understands the county and the cities have a problem. Mr. Nicholson said he understands if the city of Mary Esther continues to produce sufficient water, they are reluctant to do anything. He suggested the cities may have to provide another water source; however, he stressed they don' t know if they need the water. Mr. Lulue said if the water models were completed, they would know some of the answers. It may be determined Mary Esther will have to find an alternate water source. Mary Esther would then have to do some heavy talking. Purchase of water will cost Mary Esther up to $ 126, 000 per year. If the city wanted to purchase part of the capacity of the pipeline for $ 1. 5 Million, the annual payment would be $ 126, 000 and at the end of 20 years the City of Mary Esther would own something. If they don' t do that, they could pay $ 126, 000 and never own anything. His I biggest concern is that the capacity will not be there. owners. Mr. has Sansom taken said he has no Mr. Lulue said it will be counter- productive for the cities not to be joint knowledge that anybody from the county a position on the sUbject. He mentioned the Regional October 12, 1999 - 3- Minute Book 43, 278 Page Board of County Commissioners Meeting Sewer System in Niceville has representatives of ownership. He urged everyone to be aware that capacity needs change. Mr. Sansom said he does understand the cities' position in wanting to have some control. He stressed that decisions are made equally by the Board members. Mr. Silverboard advised it was the initial intent of the cities to have some type interest in the pipeline. He suggested the pipeline be built like a roadway. He said the City of Fort Walton Beach has researched 20- inch pipelines and 30- inch pipelines. He expressed concern that the pipeline be large enough. Mr. Silverboard said they were initially looking at the six wells around Crestview which would meet the county' s needs. He said the cities do not want to interfere with that. The cities are of the opinion they should have some authority over the corridor wells furnishing water to the cities. He suggested some sort of consortium be put together as no one knows if or when they will need water. Mr. Del Dunn, Mary Esther, said they have been told the county is going to own everything. Mr. Holley said following the workshop held in this meeting room, there was a difference inany direction that was opinion about given. In February 1999 he returned to the Board and asked for There discussion that the county never had a problem guidance. was with the cities purchasing a share in the lines. The concern was the cities could take from the Auburn System or the Crestview He wanted system or put water into the lines from other sources. to know at that time if the right direction, he was going in questioning how we quality would and if we were maintain that willing to discuss the purchase of capacity. Although there was no vote taken, he understood from that meeting that was the Board' s intent. An agreement was then prepared. Mr. Lulue said what he remembers about the first agreement was it said the cities could reserve capacity but purchasing capacity was not mentioned. Mr. Holley said he remembers that the county was facing having to spend a lot of money to buy a pipeline and they started going toward a bulk purchase. By going in that direction, there is a very low up- front expense with the cities having the ability to get water if it is needed. The cities then said they were not comfortable going in that direction. Mr. Silverboard said they are not trying to throw darts. He and John Lulue did oppose the first option and asked the county to provide an alternative whereby the cities could buy water from the county. There are two issues, one is the pipeline and the other is the supply of water. It is difficult to talk about one without the other. They want to make sure the pipeline is large enough and then want to know where the water will come from. Mr. Silverboard said he is of the opinion the county was always willing to talk. October 12, 1999 - 4- Minute Book 43, Page 279 Board of county Commissioners Meeting  He feels ownership of the pipeline can be worked out. Regarding where the water comes from, the county' s position is that any water that goes into the pipeline is coming from the county. The cities are asking for a second option. They have never abandoned the option of the cities owning the pipeline. They need to compare purchasing water with being an owner and he feels the details can be worked out. Mr. Silverboard said there are other options and I the cities are looking at the sand and gravel aquifer. He continued, saying the county has permits to drill six wells and they have most of the permission to install a pipeline from the north to the south. If the cities choose not to join the county in ownership of the pipeline, he would like for the county to place the pipeline so that it will accommodate one or more additional pipelines to meet any future needs. He said this will be expensive but pipeline space will be available if needed. The cities do not want to pay for something they may not need. This is an extremely complicated issue. They are trying to find out what is best for their system with a plan for the future should it be needed. Mr. Silverboard said the two cities need to know if there is an option. They want to know if the county has an interest in being the one to sell water from a consortium or partnership when it is needed. This is fundamental issue that needs addressing. Mr. clay Carnathan, Fort Walton Beach, said Mr. Littrell has indicated corridor wells will not be considered for 18 months at which time capacity needs will be determined. During all this time, corridor wells will be reserved for the use of the cities. He expressed the opinion it will be best if the three entities jointly go after the corridor permit. This will also give flexibility if Mary Esther' s situation changes drastically and Fort Walton Beach' s does not. This would allow some flexibility to drill those wells and bring them on line. He is not aware whether or not there is a water quality issue involved with mixing the water. That is something that allows the cities to use the infrastructure we have without having to go into full blown investment at this time. Mr. Dean Covey, Fort Walton Beach, said he received a DRI for the village of Seagrove over by Seaside. They were talking about depending on the pipeline. Mr. Holley said the model is a three- county modeling effort and each county has a different approach to meeting its water needs. Mr. Dunn referenced Mr. Silverboard' s statement about the pipeline I and allowing room for another pipeline. Mr. Dunn said we all live in the county. Mr. Holley said the discussions we are having are friendly and productive and we are trying to put all the information together. He does not want to go in any direction until all the items on the October 12, 1999 - 5- Minute Book 43, Page280 Board of County Commissioners Meeting table can be evaluated in order to make the best decision for the customers. Someone still has to operate the system and the details have to be worked out. It was the county' s preference that the system be operated by the county. Mrs. Riggs said