The Peachtree City Council on Nov. 5 unanimously adopted an intergovernmental water franchise agreement with Fayette County outlining the various responsibilities of each party. Fayette County will provide $2 million to bring the Lake Peachtree spillway to Category 1 status and will credit the city $1 million for future dredging. The county will operate the dam and spillway and the city will have responsibility for the dam, spillway and lake.
For the county’s part, the commission will take up the issue of the intergovernmental franchise agreement on Nov. 12.
Interim City Manager Jon Rorie at the outset of his presentation provided a overview of the multiple agreements between the city and county that span nearly 50 years. Rorie said the representatives of the city and county, along with public works staff, engineers and representatives from the Ga. Environmental Protection Divison (EPD) and Safe Dams have been meeting on the issues for nearly two years.
Providing highlights of the agreement, Rorie said the intergovernmental agreement combines the existing documents into one agreement that extends to 2035.
A facet of the agreement deals with what will likely become the re-categorization of the dam and spillway from a Category 2 to a Category 1 given new regulations expected to come from EPD. The agreement assigns all responsibility and liability for the dam, spillway, banks and bottom of Lake Peachtree to Peachtree City, with a county contribution of $2 million for a new spillway to bring it to Category 1 status and with the city to refund $1 million if a new spillway is not completed within four years from the date of the county payment.
Councilman Eric Imker during the discussion questioned whether the funds needed to bring the spillway and dam to Category 1 standards might be more costly than anticipated.
Rorie responding to a question on cost said the $7 million figure being suggested in some areas was outrageous, adding that the $2 million figure might not be correct based on design aspects. With the $2 million from the county it could take another $500,000 to $1 million to accomplish the upgrade the dam and spillway to Category 1, he said.
As for future dredging, the city assumes responsibility though the agreement establishes a joint funding partnership where the county credits the city with $1 million toward the next dredging and splits the remaining dredging costs with the city at 50 percent each.
The agreement states that the county will continue to operate the dam and spillway at no cost to the city and will establish the Lake Peachtree water level at 784.4 feet above sea level.
The agreement continues to allow the county to withdraw up to 4.5 million gallons per day from Lake Peachtree while eliminating the Loghouse Well agreement, saving the county operation and maintenance costs but providing water to city-owned facilities at the commercial wholesale water rate. The city will assume maintenance and operation of the well once the county brings it up to full operational condition.
Imker, who made the lion’s share of comments during the discussion, said the good news is on how the city might recover the cost of an estimated worse case of $500,000 to upgrade to a Category 1 dam and spillway and $1 million for future dredging and maintenance over the next 20 years.
“How do we get the $1.5 million?” Imker asked.
Imker said the city recently saved $1 million in the stormwater fund, leaving an estimated $500,000 needed. Given that the county will no longer be responsible for maintaining the lake, those savings could be set aside in a separate fund.
The Peachtree City population accounts for approximately one-third of the county and contributes approximately 60 percent of water revenues, given that many in the unincorporated areas are on well water, Imker said.
With that, Imker cited the example that if the city’s water rate was reduced by 10-cents those funds could be put into a fund that could come back to the city at a rate of $1 million every 10 years.
“This is not in the contract but I think it should be done,” Imker said, noting that such an amount would cover the city’s future dredging and maintenance costs.
If the county declines, Imker suggested that a small amount be added to city water customers’ bills to cover the cost or the millage rate could be increase slightly to raise the $100,000 per year.
Though he later voted in favor of the motion to adopt the water franchise agreement, Imker said he was conflicted about “voting tonight or delaying it” to give citizens a chance to review the document.
While staff and the council, through matters in executive session, were aware of the issues and discussion, Imker thought it would be prudent to give citizens time to digest the issue prior to a vote. That said, Imker noted that the council was elected to do their job and has studied the issues for more than a year and is probably most qualified to make a decision on the matter.
“If the county (at the Nov. 12 commission meeting) wants a change they’ll do it and we will renegotiate,” said Councilman Terry Ernst just before the vote.
The remaining members of the council in their comments said they believed a vote should be taken, with Councilwoman Kim Learnard saying that public comments could be made after the vote since a motion and second had occurred. The majority of the council believed a vote should be taken. The vote to adopt the water franchise agreement was unanimous.
County Commissioner Steve Brown after the vote told the council a new agreement is needed, though he would have asked to have the issue tabled.
