Special Meeting

901 Ponce de Leon Blvd. Belleair, FL 33756 Town of Belleair Meeting Minutes Special Meeting 4:00 PM Town HallTuesday, May 2, 2023 Water Special Session Meeting called to order at 4:00 PM with Mayor Wilkinson presiding. PLEDGE OF ALLEGIANCE COMMISSIONER ROLL CALL Mayor Michael Wilkinson, Deputy Mayor Tom Kurey, Commissioner Tom Shelly, Commissioner Coleen Chaney, and Commissioner Thomas Nessler Present 5 - CITIZENS COMMENTS GENERAL AGENDA 23-0061 Discussion of Potable Water Options Mayor Wilkinson stated purpose of meeting is to discuss water options. Gay Lancaster-Town Manager-provided background information regarding system; SWFWMD funding to research options for RO; investigated county transfer options; letter to negotiate; recent Black and Veech feasibility study and Stantek analysis. Ms. Lancaster introduced Joel Brown -Interagency Water Manager for Pinellas County, David Brown Belleair Water Director and Greg Turman Water Operator. Ms. Lancaster also introduced Pick Talley- Water Consultant, former Director of Pinellas County Utilities-working as consultant to provide recommendations. Pick Talley-provided description of the Town's water supply; 1,559 connections serving 4,021 residents; 7 active wells, 2 potential well sites; 40.8 miles of pipeline in distribution system; spoke on consent order regarding TTHMs; read DEP and EPA directives regarding water systems containing TTHMs. Mr. Talley spoke on county's proposal for system transfer; county requires pipe replacement quickly which would cost over $13 million; in addition, the county is requesting $4,119,356 total for the acquisition which includes replacing the remaining pipe over the next 5 years; system has an appraised value of $3.5-$4.6 million; appears county does not want to purchase systems that utilize galvanized pipe. Mr. Talley spoke on Black and Veech desktop study; consequences of failure for pipes is low to med, meaning pipes are still good; utilization of an internally developed Page 1Town of Belleair Printed on 5/18/2023

May 2, 2023Special Meeting Meeting Minutes decision tree tool, however the town's historic rate of pipe failure is very low; staff inspections of 4 samples indicate they are in better than expected condition and not in need of immediate replacement; spoke on drivers for pipe replacement; sticking point is the requirement to replace all now when pipe is still good. Mr. Talley summarized county distribution system; spoke on Town's preferred goals; provided county's water rate projections, increases projected; provided examples of utility bill amounts. Ms. Lancaster spoke on funds in reserves; if system transfer were to occur, a surcharge could be imposed to help fund gap. Mr. Talley presented the second option, a wholesale purchase of county water; upgrades to be done, current operations of wells and treatment plant would be discontinued, net impact would be $1,180,000 to be funded by rate increase or reserves; estimated wholesale rate projections provided, broken down by tiers; important to conduct a thorough study of the water treatment plant prior to abandoning the supply; current technology available to treat and maintain control over water quality. Mr. Talley spoke on potential for a water exchange cooperative agreement with Clearwater; benefit to both cities; raw water could be increased and supplied to Clearwater to be treated then returned; option for private sale; appraiser valued system at $4.2 million , several private groups expressed interest; final option is a Florida Governmental Utility Authority (FGUA); created per statute; includes over 98 systems in 14 counties; ability to negotiate directly with authority. Brand Shank-resident-spoke on seeing pipes during road construction; disputes the condition of cast iron pipes. Ms. Lancaster stated recommendation is to enter a wholesale agreement with Pinellas County; upgrade interconnects; DEP consent order will go away; provides ability to maintain control and look into future options; SWFWMD standard is local sources first, encourages not to let the system go at this time; rate increase in either scenario; prudent to investigate options over time, new technology. Mayor Wilkinson asked for questions of the Commission; supports wholesale. Commissioner Chaney questioned Mr. Brown as to why field verification wasn't done by the county. Joel Brown spoke on field verification process; intensive and requires flushing and sanitization where break was done; best available information used for the study; addressed question regarding activation timeline of wholesale; pending interconnect upgrades and DEP acceptance, estimates 3-6 months. Ms. Lancaster spoke on the coupon samples that were done in areas identified as highest risk and were in remarkably good shape. Commissioner Shelly questioned if it is a good goal to use local water sources; Mr. Brown affirmed, spoke on Tampa Bay Water; comments on other municipalities and RO labor market. Deputy Mayor Kurey questioned Pick Talley analysis; Mr. Brown spoke on costs on everything in general, county looking at rate structure, spoke on RO water sensitivity, wholesale option provides ability to press pause and clear out DEP issues. Page 2Town of Belleair Printed on 5/18/2023

May 2, 2023Special Meeting Meeting Minutes Deputy Mayor Kurey questioned proposed rate structure for wholesale; Ms. Lancaster clarified average was used. Deputy Mayor Kurey questioned if a wholesale rate increase is being contemplated for 2024 and if it's included; Mr. Brown stated a 5% was proposed but not yet approved, Mr. Talley spoke on it; increase was included in projected amounts. Ms. Lancaster spoke on option to reduce rate increase impact; suggests using reserves to pursue replacement of pipes. Commissioner Shelly stated there was no increase on water rates last year. Commissioner Chaney spoke on initial savings with wholesale option; questioned staffing for water department under proposal; Ms. Lancaster addressed; maintenance is still needed. Commissioner Shelly moved to enter into a wholesale agreement with Pinellas County for the provision of potable water. Seconded by Commissioner Nessler. Aye: Mayor Wilkinson, Deputy Mayor Kurey, Commissioner Shelly, Commissioner Chaney, and Commissioner Nessler 5 - Commissioner Shelly moved to upgrade the two existing interconnects with the county at an estimated cost of $150,000. Seconded by Commissioner Chaney. Aye: Mayor Wilkinson, Deputy Mayor Kurey, Commissioner Shelly, Commissioner Chaney, and Commissioner Nessler 5 - ADJOURNMENT Mayor Wilkinson thanked staff and Mr. Talley. Commissioner Shelly spoke on Tampa Bay League of Cities bylaws. Commissioner Chaney had nothing further to discuss. Commissioner Nessler congratulated Mr. (Dave) Brown on his retirement. No Further Business; meeting adjourned in due form at 5:10 PM. Commissioner Shelly moved to adjourn. Seconded by Commissioner Nessler. Aye: Mayor Wilkinson, Deputy Mayor Kurey, Commissioner Shelly, Commissioner Chaney, and Commissioner Nessler 5 - _______________________________ TOWN CLERK APPROVED: _______________________________ MAYOR Page 3Town of Belleair Printed on 5/18/2023

Special Meeting

Town of Belleair

Meeting Agenda

901 Ponce de Leon Blvd.

Belleair, FL 33756

Town Hall4:00 PMTuesday, May 2, 2023

Water Special Session

Welcome. We are glad to have you join us. If you wish to speak, please wait to be recognized, then

step to the podium and state your name and address. We also ask that you please turn-off all cell

phones.

PLEDGE OF ALLEGIANCE

COMMISSIONER ROLL CALL

CITIZENS COMMENTS

(Discussion of items not on the agenda. Each speaker will be allowed 3 minutes to speak.)

GENERAL AGENDA

Discussion of Potable Water Options23-0061

Potable Water System May 2Attachments:

ADJOURNMENT

ANY PERSON WITH A DISABILITY REQUIRING REASONABLE ACCOMMODATIONS IN ORDER TO PARTICIPATE IN

THIS MEETING, SHOULD CALL (727) 588-3769 OR FAX A WRITTEN REQUEST TO (727) 588-3767.

Page 1 Printed on 4/27/2023