Official Minutes of MARION COUNTY BOARD OF COUNTY COMMISSIONERS January 31, 2012 The Marion County Board of County Commissioners met in a workshop session at 10:01 a.m. on Tuesday, January 31, 2012 in the Growth Management Training Room located at 2710 East Silver Springs Boulevard. Upon roll call the following members were present: Chairman Charlie Stone, District 5; Vice-Chair Kathy Bryant, District 2; Commissioner Mike Amsden, District 1; Commissioner Stan McClain, District 3; and Commissioner Carl Zalak, District 4. Also present were Clerk David R. Ellspermann, County Attorney Matthew G. Minter and County Administrator Lee Niblock. Upon roll call the following members of the Ocala City Council were present: Council President Suzy Heinbockel, Councilman Daniel Owen, Councilman John McLeod, Council President Pro Tem Mary S. Rich and Mayor Kent Guinn. Also present were City Manager Matt Brower and Assistant City Attorney Jimmy Gooding. The meeting opened with the Pledge of Allegiance to the Flag of our Country. Contracts & Agreements/Municipalities/Projects & Programs/Utilities – Staff presented a 1 page agenda and a 13 page handout entitled, “Working Together For Our Citizens And Our Future!” to follow along with the PowerPoint presentation. Chairman Stone advised that one of the common concerns faced by citizens in both the City of Ocala and Marion County was water and sewer issues. He noted Utilities Director Flip Mellinger along with Jeff Halcomb, Water and Sewer Director, City of Ocala, would be addressing the PowerPoint presentation. Mr. Halcomb advised that he and Mr. Mellinger had met several times to determine the best way to work together to resolve water and sewer issues, now and in the future. He referred to page 2 of the handout, which provided a map of both utility system territories throughout Marion County. Mr. Halcomb noted the blue portion in the center of the map was the water and sewer service area for the City of Ocala and the surrounding purple and green areas were utility systems owned by Marion County Utilities. Mr. Mellinger noted the Silver Springs Shores service area extended all the way out to Forest High School. He commented on the Silver Springs Regional service area, which was primarily isolated with approximately 540 customers. Mr. Mellinger advised that a proposal was being designed that would extend Marion County service lines across the northern portion of the City to support a development located on Highway 441 and CR 326 (Ocala Meadow Farms). He stated the project would bring the sewer line over to the Silver Springs Regional Plant and provide a force main back to the project’s golf course. Mr. Mellinger commented on the County’s water service area directly across from the Irish Acres subdivision, as well as the utility service area near I75 and CR 326. Mr. Halcomb addressed capacity levels for both the City and County water and wastewater systems (page 3). He advised that the City’s Water Reclamation Facility No. 2 had a permitted capacity of 6.5 million gallons per day (mgd), noting the current flow Book Q, Page 427

January 31, 2012 was 2.93 mgd. Mr. Halcomb stated Water Reclamation Facility No. 1 had a permitted capacity of 2.46 mgd with a current flow of 0.743 mgd and Water Reclamation Facility No. 3 had a permitted capacity of 4.0 mgd and a current flow of 2.05 mgd. Mr. Mellinger advised that the County’s Silver Springs Regional Wastewater Treatment Facility had a permitted capacity of 0.045 mgd or approximately 600,000 gallons per day (gpd) and a current flow of 0.13 mgd (130,000 gpd). He stated the Ocala Meadow Farms project was the driving force in regard to the need to establish a cooperative effort with the City of Ocala. Mr. Mellinger addressed the cost (approximately $5.5 million) to upgrade and construct a force main from the Ocala Meadow Farms project to the Silver Springs Regional Wastewater Treatment Facility. Mr. Halcomb advised that due to the economy and the lack of growth previously projected, there was capacity available at both utility systems. He referred to page 4, which provided an option (Silver Springs Phase 1A) that allowed for City and County utility systems to work together to provide services to residents in that area. Mr. Halcomb advised that the option would require the installation of an 8 inch force main from the existing County lift station to an existing City lift station at an estimated cost of $325,000. He noted the option would allow the County to avoid spending $5.5 million to upgrade that facility. Mr. Mellinger advised that there were also several package plants in the area that the County was working toward taking offline. He addressed the total maximum daily load (TMDL) process that would start in Silver Springs and Silver River, which would apply loading to certain wastewater plants, driving the need to either upgrade those plants or connect to a central utility in order to go offline. Commissioner Bryant commented on the spray field located by the Silver Springs plant and questioned where that effluent would go if the proposed project was approved. Mr. Halcomb stated the flow would go to the City’s Water Reclamation Facility No. 2 to be treated and then on to the Ocala Municipal Golf Course, Shocker Park, Jervey Gantt Park, etc. He noted the City also sent approximately 2,000,000 gallons of flow to the City’s spray field in Belleview. Commissioner Bryant questioned what the new capacity would be at the Silver Springs Regional Wastewater Treatment Facility if the County expended the $5.5 million on upgrades. Mr. Mellinger stated the upgrades would have allowed for the full 600,000 gallon capacity and would have become an advanced wastewater treatment plant. Commissioner McClain questioned the matrix used to determined what size force main would be needed. Mr. Halcomb stated an engineering standard was utilized, noting an 8 inch force main could handle up to 1,000,000 gallons of flow. Mr. Halcomb referred to the diagram on page 5 (Ocala Meadows Phase 1B), which would require the installation of a force and reuse main from existing City facilities to the proposed site at an estimated cost of $1.32 million. He provided a brief overview of the proposal, noting wastewater would be brought back to a lift station near the Evergreen subdivision. Mr. Mellinger noted the developer would pay a portion of the cost of the force main. Commissioner Bryant expressed concern that the developer had spent a considerable amount of time and money preparing the project’s surveying and master plan to determine how the development would hook into the County’s system and questioned if what was being proposed now would delay their project. Mr. Mellinger advised that what was being proposed, initially, would be a wholesale agreement with the City to buy capacity through Equivalent Residential Connections (ERC’s), noting the Page 428, Book Q

January 31, 2012 County would pay a wholesale/bulk rate on the sewer service. He noted the citizens in that area would be County utility customers and the County would still maintain the system. Mr. Mellinger stated the next phase would be a financial analysis that would review what had to transpire so that both the City and County remained financially whole. He commented on the rate model, which projected growth in the service areas as well as future revenue. In response to Commissioner Bryant, Mr. Mellinger stated the City’s rate was lower than County rates, noting the agreement would have a positive impact on County rates over time. Commissioner Bryant questioned if there would be a surcharge from the City for County customers that would make the current rate increase. Mr. Halcomb advised that the City rate would not be higher than the Marion County rate. He noted the developer would still tie into the pipeline at the same place. Mr. Halcomb referred to page 6, noting the circles represented 5 mile areas that surrounded wastewater plants. He advised that the areas in pink represented populated areas that offered potential options where the City and County could work together to provide services without investing a great deal more money into infrastructure (i.e., Golden Ocala). Mr. Mellinger noted that although the County still had capacity within its current systems, much of it had already been set aside for new development. Mr. Halcomb commented on the On Top of the World subdivision (page 8), noting the City was working on an agreement to supply the subdivision with reclaimed water, and in return, the development would provide the City with potable drinking water. He advised of several other opportunities to work with developers and private utility owners (Bahia Oaks, Roosevelt Village, etc.) in order to tie in with City lines (pages 9 and 10). Mr. Halcomb stated page 11 provided an example of City/County water and sewer rate schedules. Mr. Halcomb addressed the challenges faced not only by City and County utility systems, but by private systems as well, which included rate modifications, compliance with TMDL process, degradation of plants and pump stations, Operations and Maintenance (O&M) costs, etc. (page 12). Mr. Mellinger advised that the Florida Governmental Utility Authority (FGUA) had been approached by several private utilities within the County regarding potential acquisition of their systems. Mr. Halcomb addressed the need for an economy of scale through local partnerships with private systems that would be both economically and environmentally beneficial to the citizens of Marion County. Commissioner Amsden thanked Mr. Halcomb and Mr. Mellinger for working together to develop a long term solution that was not only in the best interest of the environment, but citizens as well. Chairman Stone commented on the County purchasing capacity at a bulk rate and questioned if there would be a sliding scale according to the amount of flow volume needed or which treatment facility was utilized. Mr. Halcomb stated it would be based on the cost per thousand gallons no matter which plant was utilized. Commissioner Bryant concurred with Commissioner Amsden in regard to working together with the City of Ocala, noting the partnership would be in the best interest of all Marion County citizens. Commissioner Zalak thanked staff from both utility departments as well as the members of Ocala City Council for their leadership in allowing staff to work together. Upon call for public comment, Butch Verrando, SW 138th Terrace, Dunnellon, questioned whether staff would be monitoring the nitrate levels in Silver Springs. Mr. Book Q, Page 429

January 31, 2012 Mellinger advised that the TMDL process would monitor nitrate levels. Mr. Verrando questioned what actions would be taken if there was no reduction in the nitrate levels. Mr. Mellinger stated the TMDL process would also review other contributing factors (fertilizers, septic systems, etc.). Mr. Halcomb noted educating citizens was the most important factor in regard to reducing nitrate levels. Brian Creekbaum, NE 31st Terrace, opined the City of Ocala’s obligation was to its citizens first and questioned how the City’s utility system customers would benefit from this joint venture and how would it relate to annexation. Mr. Halcomb stated by accepting flow from the County the City would receive revenue that would help to stabilize the rates for City of Ocala utility customers. Mr. Creekbaum questioned the term of the agreement with the County regarding the allocation of capacity. Mr. Halcomb advised that a typical agreement would be for a 20 year term, but noted, as with any agreement, it could be amended if necessary. In response to Mr. Creekbaum, City Manager Matt Brower stated by working with the County in this way, the City would not have to invest any more money in capital for treatment facilities. In regard to annexation, Mr. Brower advised that when people decided to annex, they considered existing service levels, value and cost of those services, etc., and usually wanted to annex into the municipality that could provide the lifestyle and standard of living that they choose, at a price they were willing to pay. Commissioner Amsden opined what was being proposed today would not affect annexation, noting the County would be purchasing and controlling the capacity to service those areas. Jason Buckwheat, SW 102nd Place, commented on County residents who would receive capacity provided by the City of Ocala and questioned if those citizens would be allowed to have input with Ocala City Council. Mr. Halcomb stated the City/County interaction would be through the agreement. Commissioner Amsden advised that the Board of County Commissioners (BCC) would still represent citizens who lived outside the City limits. Mayor Guinn concurred, noting the City would be selling a commodity to the County who would supply that service to its utility customers. Commissioner Zalak stated working together with the City would help stabilize rates for utility customers. Councilman Owen noted working together would help reduce capital needs in the future. Barbara Schwartz, NE 17th Street Circle, advised that all citizens received their water from the aquifer, noting she supported staffs efforts to work together. She questioned the effect nitrates had on drinking water. Mr. Halcomb stated the current drinking level standard was 10 milligrams per liter. He noted drinking water samples were monitored regularly and currently showed less than 1 milligram of nitrate per liter. Councilman McLeod out at 10:57 a.m. Matt Baker, SE 39th Circle, construction manager for the Ocala Meadows project, questioned the timeframe for staff to move forward with the proposal. He noted any decisions made today could have an effect on the construction project timeline. Councilman McLeod returned at 10:58 a.m. In response to Mr. Baker, Mr. Halcomb advised that once direction was provided by the Boards, staff could meet with Mr. Baker and provide all of the information he needed. Mr. Mellinger opined that by working together with the City, the timeline for availability of water and sewer to the Ocala Meadows project would be shorter than originally estimated. Page 430, Book Q

January 31, 2012 David Tillman, SE 16th Avenue, advised that he had recently met with Blake Guillory, Executive Director, Southwest Florida Water Management District (SWFWMD). He noted SWFWMD was looking at municipalities and government entities that were working together to create more alliances to save water, lower capital improvement costs, etc. Mr. Tillman opined that developing these types of programs would increase the chances for SWFWMD/State funding for future projects. Councilman Owen commented on the importance of coming together as a County to protect its resources and noted if the community did not address the issues the State could step in. Commissioner McClain advised that the County had already entered into an agreement in regard to the TMDL process for the Silver Springs Basin. He stated the County had also addressed nitrate loading at the Silver Springs plant. Commissioner Bryant stated both Boards were advocating for local control. Commissioner Amsden recommended that staff continue to expedite the terms of the proposed agreement by working with City staff, administrators and legal departments and to bring back a proposal as soon as possible for Board consideration. It was the general consensus of the BCC to concur. Chairman Stone requested staff bring the proposal back by the second regularly scheduled BCC meeting in February. Councilman Owen noted both Boards had the ability to call special meetings should the proposal be drafted at an earlier date. Mayor Guinn thanked staff for their hard work. City Council President Heinbockel advised that it was also the consensus of the Ocala City Council to direct staff to work with the County on the proposal. There being no further business to come before the Board, the meeting thereupon adjourned at 11:08 a.m.

________________________________ Charlie Stone, Chairman Attest:

_______________________________ David R. Ellspermann, Clerk Adopted by the Board of County Commissioners on Tuesday, February 21, 2012.

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