$5.5 million utility purchase approved


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  • | 5:00 a.m. February 7, 2013
  • Palm Coast Observer
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Before Flagler County officials approved an interlocal agreement with the city of Bunnell to purchase and manage the Plantation Bay utility, they said they knew they were paying too much for a system in disrepair.

“I’ve been opposed to (this purchase) basically because it’s a bad deal,” said County Commissioner Barbara Revels. “However, these people need to have better water, so with all kinds of reservations about this, and knowing it’s a bad deal, I’m going to support the motion.”

Other commissioners voiced similar concerns before voting Wednesday night to move forward with the $5.5 million purchase, which carries an anticipated $7.6 million of additional expense to rehabilitate the utility. 

The motion passed 4-1, with Commissioner George Hanns casting the dissenting vote — but not before saying he knew that morally, purchasing the utility was the right thing to do, but that he couldn’t support the motion as a commissioner after spending years dealing with the utility’s current owner.

The vote came after a four-hour joint workshop of the Flagler County Board of county Commissioners and the Bunnell City Commission. Bunnell also voted in favor of the interlocal agreement.

The current owner of the Plantation Bay utility has not maintained it. It has been likened to a house of cards: unstable, and ready to fall at any time. Residents complain of yellow bathwater, and engineers say the entire system could fail at any time, rendering more than 1,600 people waterless.

Flagler County and Bunnell will buy the utility and restore it through an interlocal agreement. The plan is to revive the utility, and the costs will be shouldered by Plantation Bay utility customers through rate increases.

The proposed rate changes would increase rates for Plantation Bay customers by 30%.

Water service currently has a base charge of $11.62 per month, with a usage charge of $3.34 per 1,000 gallons. The recommended increase would be a $15.11 base charge, with a usage charge of $4.34 per 1,000 gallons.

Current wastewater charges have a base rate of $18.95 per month, with a usage charge of $3.66 per 1,000 gallons. The recommended increase would be a $24.64 base charge, with a usage charge of $4.76 per 1,000 gallons.

An average customer using 4,000 gallons of water each month could expect a total increase of $17.58 per month for water and sewer.

Officials said the rates could decrease if the customer base were broadened as the vacant lots in the DRI are filled.

The Plantation Bay utility has a service area that straddles the Flagler and Volusia County lines. Most of its customers live in Volusia County. Flagler County has been trying to acquire the Plantation Bay utility for more than a decade. 

The $5.5 million purchase price is a decrease from the utility owner’s original asking price of $9 million.

As engineers presented their proposed improvements to the utility, Flagler County and Bunnell officials expressed concerns over the cost.

“At the end of the day, these people have to have drinkable water and sewer service,” County Commissioner Nate McLaughlin said. “But at the same time, the numbers are very bothersome to me when compared to the state of the system.”

Engineers attributed the state of the utility to poor maintenance. 

County and Bunnell officials ultimately decided that the utility needed immediate attention. The interlocal agreement between Bunnell and Flagler County will make both municipalities equal partners in running the utility.

The Board of County Commissioners and the Bunnell City Commission will both serve as representatives for the utility, and will need to reach agreement before any rate changes or other changes could be made in the future.

Jane Gentile-Youd, a resident of Plantation Bay, spoke during public comment to express appreciation for the two governmental bodies for addressing the water problem in her community. But, she urged them to reconsider the spike in utility costs for residents.

“Please understand that it’s unfair for us to pay for repairs that are not our fault to begin with,” she said. “And think of what can happen if our rates are raised that much: You’re going to have fewer sales in Plantation Bay.”

Now that the interlocal agreement has been established, county and Bunnell staff will move forward with the utility acquisition immediately.

 

 

 

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