500 san sebastian view - jacksonvilleapps2.coj.net/city_council_public_notices...recommendation or...
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21 West Church Street
Jacksonville, Florida 32202-3i39
JE/\
ELECTRIC
WATER
SEWER
September 27, 2019
St. Johns County ("SJC")Attn: Mr. Michael D. Wanchick
County Administrator, St. Johns County500 San Sebastian View
St. Augustine, FL 32084
Re: Interlocal Agreement ("Agreement") - Notice of Exclusive Purchase Event ("Notice")
Dear Mr. Wanchick,
Thank you for your letter dated August 27, 2019 stating SJC's staff will "recommend that the Boardof County Commissioners investigate and negotiate the purchase ofJEA assets . . . should suchaction be determined to be in the best interest of [SJC] residents and businesses." We are also inreceipt of your September 11, 2019, letter requesting an update on JEA's Invitation to Negotiate("ITN")timeline.
JEA has set October 7, 2019 as the deadline to submit responses to JEA's ITN #127-19. Ourevaluation team will meet and post a Notice of Intent to Negotiate on October 18, 2019. JEAexpects that it will take several months to negotiate with the various respondents. At theconclusion of the negotiation, the JEA Board will, in the Spring of 2020, either approve the ITNrecommendation or conclude the ITN with no change to JEA.
JEA understands SJC's desire to evaluate its option to purchase JEA assets in SJC. To that end,thefollowing letter and support documentation is intended to aid the SJC Board of CountyCommissioners' analysis of the impacts on SJC, its residents, and its businesses. The enclosed Cost-Benefit Analysis and below figures have been prepared by JEA and its consultants.
A SJC Board of County Commissioners decision to exercise its purchase option under theAgreement would:
Require SJC to more than double its debt load by adding over $340 million in debt (>$26 millionper year);
Increase water and sewer rates on JEA customers in SJC by over 15%;Deprive SJC JEA customers of over $34 million in utility rebates;Eliminate an immediate increase in tax base of over $300 million;Forego new revenues for SJC of over $4 million per year;Reduce SJC's current revenues by $3 million per year;Require SJC to increase its capital expenditures over $10 million per year;Increase the risk that SJC's Consumptive Use Permit (CUP) would be insufficient to meet thecounty's needs to serve residents and business while promoting economic growth; andEliminate over $600 million of new taxable property values over the next 30 years.
Regarding your request for additional information, please note that not all of the information yourequested is maintained in the ordinary course of business or readily available. JEA is working toassemble the requested information and will provide you all of the information that is available toassist you in making a decision. In addition, JEA is meeting with your staff on October 3 to discussthe materials requested in your letter of September 11.
September 27, 2019Page Two
Finally, please accept this letter as formal Notice of the ninety (90) day period upon which JEArequests SJC submit its decision on whether to: i) exercise a purchase option under the Agreement;or ii) waive any purchase option under the Agreement.
Please contact me if you have any questions.
Very trj^ily yours,
^/-/HCrschel T. Vinyard \/Chief Administrati^Office'
Enclosure
ec: St. Johns County Board of County CommissionersHon. Hunter S. Conrad, St. Johns County Clerk
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