County Commission to weigh utilities purchase

PANAMA CITY — The long trek toward public purchase might soon be over for Bayside and Sandy Creek utility systems.

At Tuesday’s 9 a.m. county commission meeting, commissioners will don their regulatory hats to consider the purchase of both entities by nearby municipalities, Panama City Beach and Callaway, respectively.

So far, Bay County commissioners have pledged $350,000 toward the $1.125 million combined cost of both utilities. In addition to approving or denying the sale, commissioners also will consider Tuesday whether to waive $219,000 in regulatory fees collected by Utilities Inc. but still owed to the Utility Regulatory Authority. The application of the fees toward lowering the purchase price was critical to reaching a price agreement.

“I’m sure that if we don’t waive those fees, it would nix the deal,” said Commissioner Guy Tunnell, who has served as the County Commission’s liaison on the deal.

Waiving those fees comes with mixed emotions, Tunnell said. Though he said he wants to see the issue resolved for the sake of residents in both areas, letting Utilities Inc. off the hook isn’t easy.

“I think Utilities Inc., for whatever reason, was able to take advantage of us,” he said. “… Those are costs we absorbed.”

What does not appear to be on the agenda is a county contribution for the reduction of fees associated with the sale for Sandy Creek customers. While their base water bill will be lower after the purchase than it would have been if Utilities Inc. maintained control, Sandy Creek customers will be faced with impact and capital extension fees, which are expected to be $7,690 for a three-bedroom, two-bath home.

At a recent County Commission meeting Sandy Creek residents asked commissioners to intervene on their behalf to lower impact and capital extension fees.

Last week, Callaway commissioners agreed to match any money, up to $175,000, that Bay County agreed to put up to lower the fees and refund the money when a bond taken out to assist with the purchase comes due.

Tunnell said after the Callaway commission meeting he would like to see the fees on homeowners lowered.

Callaway also has agreed to pursue grants to reduce the cost of the project, and thus the fees for residents.

Water rates will remain the same for Bayside customers.