- April 25, 2024
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A $10 million paving and re-paving project in the Marineland Acres area will proceed, even though it's not yet entirely clear how part of it — relocating the city of Palm Coast's utility lines, which supply the area's water — will be paid for.
Under Florida law, a utility provider must move their infrastructure at their own expense when it conflicts with a transportation project. Palm Coast does not want to do that, making what County Administrator Jerry Cameron referred to as an "equity argument": that moving the infrastructure using city utility money would burden all of the city's ratepayers with a project that only benefits a few.
Commissioner David Sullivan said, "I just can’t resist this question: So basically, what the Palm Coast utility is saying to us is, 'We don’t want to put any money into this project.'"
At a County Commission workshop Jan. 11, county commissioners agreed to look for more funding sources such as grants, but to also begin the project, which relies on state grant money that must be used within a certain time frame.
"Mr. Cameron phrased it as an 'equity argument.' I think that’s part of the issue before us today," Palm Coast City Manager Matt Morton said. "It’s also a fiduciary argument on behalf of the city. ... And I think lastly, thirdly, it’s operational argument; it's a business argument."
At the current utility rates, he said, it would take 60 years to make up the utility relocation's worst-case-scenario cost of $1.5 million.
Morton proposed three options: That the county and city look into cutting expenses and finding additional grant funding; that the city increase the utility rate for Marineland Acres from the current 125% of that paid by regular city utility customers, to 150%; or that a special tax district be established for Marineland Acres to pay for the work.
County Commissioner David Sullivan said the matter seemed to be a legal question. The city hadn't made a legal argument.
Commissioner Andy Dance noted that the residents of Marineland Acres wouldn't benefit in any immediate way from the utility relocation, which would only be replacing what they already have.
Morton mentioned wanting the project to become a zero-cost project.
Sullivan said, "I just can’t resist this question: So basically, what the Palm Coast utility is saying to us is, 'We don’t want to put any money into this project.'"
Morton said the utility is, in essence, a business, and the project isn't something the city had budgeted for.
"So, the answer's no," Sullivan said.
"Absolutely no, in lieu of the other solutions," Morton replied. "... Again, from my business and equity standpoint of managing the utility, I had to come in today and ask for those costs to be assigned to those receiving the benefit."
The commission voted 4-0, with Commissioner Greg Hansen absent, to initiate the project and look into cost savings and additional options for funding.
