County Commission votes to turn utilities over to Florida Governmental Utility Authority

The FGUA was able to quickly make substantial improvements at the Plantation Bay utility, according to the county administration.


Flagler County Administrator Jerry Cameron. Image from county meeting livestream
Flagler County Administrator Jerry Cameron. Image from county meeting livestream
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Flagler County will turn the troubled water utility at Plantation Bay, along with utility facilities that serve the Beverly Beach and Eagles Lake areas, over to the Florida Governmental Utility Authority.

The County Commission voted 5-0 at a July 13 special meeting to approve the transfer.

"We think the system’s in a much more stable place today than it was a year or so ago when we first got involved."

 

— KEVIN GRACE, FGUA assistant manager

The FGUA, according to the agreement the county approved, will pay the county an amount equal to the principal balance on the County Utility System Debt, currently projected to be $16,365,356 on Oct. 15, according to a county staff document. That money must be used to repay the debt.

"The utility issue in Flagler County has been a long and lamentable journey that we’ve attempted to get into the utility business without the necessary expertise, nor did we develop the expertise along the way," County Administrator Jerry Cameron said at the meeting. "... We contracted them [FGUA] to remediate water quality problems in Plantation Bay, and when we got them into there, within weeks, our water quality improved dramatically. They have been continuing upgrading various components of the system since, and I have full confidence that they are the answer to having a utility that provides reliable, continuous service to the residents."

As part of the agreement, Flagler County would receive a seat on the FGUA's board, which includes representatives from the communities in which it operates. That seat would go to the county administrator or his designee.

"We think the system’s in a much more stable place today than it was a year or so ago when we first got involved," FGUA Assistant Manager Kevin Grace told commissioners at the meeting. "There’s still a lot to be done, but I believe we’re on the right pace to get that accomplished."

FGUA has utilities in 13 counties, with approximately 120,000 customer connections, he said. 

Plantation Bay resident Jane Gentile-Youd, speaking during the meeting's public comment period, said she thought the sale was great, but asked if it would cause a rate increase.

Cameron said that a contract provision specifies that rates will remain the same for two years. 

 

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