AGENDA MEMORANDUM

Meeting Date:           April 14, 2008

From:                          Raymond S. Sharp, Director, Environmental Services/Public Works

Subject:                      Resolution authorizing an Interlocal Agreement establishing a Water Alliance in Lake County

Staff Recommendation:

Staff recommends approval of establishing a Water Alliance in Lake County.

Analysis:

Each of the cities in Lake County, together with Lake County BCC entered into an interlocal agreement some time ago for the purpose of creating a county-wide Water Supply Plan.  That plan was accepted by the Water Supply Planning Alliance in December; effectively, that action ended the Water Supply Planning Alliance.

The various entities who participated in that interlocal agreement have continued to meet and have reached a consensus that there is considerable value to continuing action as a group.  They have proposed a new interlocal agreement to re-establish the Alliance with the same membership as before.  The Village Center Community Development District has participated informally throughout the prior process and has expressed their wish to join in the new Water Alliance; this interlocal includes that entity as a full voting member.

This interlocal agreement also establishes a small operating budget of $50,000 for the first year, apportioned proportionately among the members.  One of the first activities of the newly formed Water Alliance under this interlocal will be to adopt a line item budget for expenses, as well as to determine accounting procedures acceptable to the members.  Our share of this budget is $6,462.69.  The individual shares were developed by distributing 50% of the cost to all members equally (essentially, each vote pays equally) with the remaining 50% of the cost distributed on the basis of documented water usage for calendar year 2005 (so larger users pay proportionately more, smaller users are not burdened disproportionately).  This method of cost apportionment received a consensus approval.

Staff strongly supports the City of Leesburg’s continued participation in the interlocal agreement and recommends acceptance of the proposed budget amount contained in the interlocal agreement.  The allocation method is fair and equitable, and more than sufficient funding is available within the current adopted budget for the Water enterprise fund.

Options:

1.  Approve the interlocal agreement as presented; or,

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

The current adopted budget includes approximately $250,000 for our participation in an Alternative Water Supply Preliminary Design Report.  That activity has not yet come to pass, nor is it likely to begin within the current fiscal year.  This funding is therefore available for this purpose.  An additional amount of $15,000 was also included for water supply planning – this amount is also available.

Submission Date and Time:    4/9/2008 6:28 PM____

Department: Environmental Services Prepared by:  R. Sharp Attachments:         Yes X  No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No  X _________________________________            Revised 6/10/04

Reviewed by: Dept. Head RSS Finance  Dept. __________JB______                                    Deputy C.M. _________EFS_______                                          Submitted by: City Manager ___________________

Account No. 043-3021-533.31-30 Project No. _________________ WF No. ____________________ Budget  ____$371,756_________ Available ___$256,230_________

RESOLUTION NO._______________

A resolution of the City Commission of the City of Leesburg, Florida authorizing the Mayor and City Clerk to execute an interlocal agreement relating to the establishment of a Water Alliance in Lake County; and providing an effective date.

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

            THAT the Mayor and City Clerk are hereby authorized to execute an interlocal agreement establishing a Water Alliance in Lake County.

 THAT this resolution shall become effective immediately.

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the __14th___ day of _April__ 2008.

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk