BY MARK SCHUMANN
In the early 1980s, when the county first considered connecting the unincorporated area of the south barrier island to its mainland water and sewer system, it was determined the cost could not be justified.
Explaining the county’s decision to forgo building a subaqueous crossing of the Indian River Lagoon, then county utility director Terry Pinto was quoted in a newspaper article saying, “We believe the most cost efficient method to serve the South Beach is to let the city do it.”
Some 30 years ago, the cost of boring under the lagoon to connect a relatively small number of customers to the county’s utility system was estimated at $7.5 million.
What the county chose to do instead was to enter into a 30-year franchise agreement with the city. With that agreement set to expire in 2017, the county put the city on notice that it intends to take over water and sewer service to the 3,000 customers on the south barrier island.
The sticking point is that the city and county also have a service territory agreement giving the city both the right and the responsibility to provide water and sewer service to the south barrier island in perpetuity. In order to clear that hurdle, the county has enlisted State Rep. Debbie Mayfield, who plans to introduce legislation that will make it easier for the county to seize the south barrier island service area.
In addition to the millions of dollars it will cost for a subaqueous crossing of the lagoon, the county will also have to pay to compensate the city for the utility infrastructure it installed and has maintained for some 30 years. One recent valuation set the price for the city’s water and sewer utility lines in the area at $10 million.
Even if that number could be negotiated down to perhaps $5 million, it is still going to require a total public investment of no less than $10 million for the county to become the water and sewer provider for the residents of the south barrier island.
With an upfront capital investment likely to amount to $4,000 or more per customer, it is hard to see the logic of the county wanting to take on service to the area.
Yes, it is true that the county’s over-built water and sewer system is only 40 percent utilized, leaving the county desperate for more customers. But the county’s need for more customers doesn’t justify asking all 27,000 of its current customers to share in the cost of a hostile takeover of the city’s south barrier island service area.
For the $10 million or more in public investment that would be required, there will be absolutely no offsetting advantage to existing county customers, or to the residents of the south barrier island.
Though the city’s and the county’s rate structures are different, they are essentially rate neutral. Low volume users pay more with the city, while high volume users pay more with the county.
Just the same, the city has offered to give its south barrier island customers county rates, and has offered to match county rates for the full term of any new franchise agreement.
If the issue for south barrier island customers is rates – if low volume users want to pay less and high volume user want to pay more – then county rates they can have, and without necessitating a completely irresponsible public investment of $10 million or more.
What is at play here is not so much a genuine desire on the part of the County Commission to see that south barrier island residents are able to sleep better at night knowing their utility rates are set by the county. Just as with the county’s attempted hostile takeover of the city’s water and sewer service to the Town of Indian River Shores, this move is being made in hopes the city will eventually have to sell its valuable water and sewer utility at a fire sale price.
Then, with the power plant site and the treatment plant site available for development, up may go a marina resort. Just last month Councilman Craig Fletcher told the Democratic Women’s Group that he would like to see there area development in this way.
Wonder what the motivation is for some who are pushing so hard for the sale of Vero Electric? It’s about development.
Wonder why the county wants its hands on the city’s water and sewer system? It’s about the county needing the city’s 17,000 customers to make less inefficient a county utility system that is way overbuilt.
Wonder why some are working to weaken the city financially by selling off both the electric system and the water and sewer system, so that it will eventually have to let itself be absorbed by the county? Again, it’s about development. More specifically, it is about future development opportunities along the Indian River Lagoon, development that will be more likely to receive approval with the county commission calling the shots on height restrictions and other development regulations.
The county recently mailed a questionnaire to south barrier island residents asking if they want to receive water and sewer service from the city or the county. Conveniently, that survey made no mention of the fact that the city has already agreed to match county rates over the full term of a new franchise agreement.
Nor did that survey say anything about the fact that switching the 3,000 south barrier island homes from city service to county service would require a public investment of $10 million or more.
