The Southwest Florida Water Management District Tuesday voted 7-4 to approve a settlement agreement with Tampa Bay Water that resolves a dispute over how much water a seawater desalination facility must produce. The agreement also promotes environmental restoration.
This agreement allows the District and Tampa Bay Water to move forward with its partnership to ensure a sustainable water supply for the Tampa Bay area and expedite environmental recovery in areas where water resources are stressed, said Heidi McCree, Governing Board chair.
The District had pledged up to $85 million toward the costs of a 25-million-gallon seawater desalination facility being built by Tampa Bay Water. The desalinated water is needed to allow for reductions in groundwater withdrawals from the central wellfield where pumping has negatively impacted the environment.
The District believed the agreement required the plant to be operated near capacity. Tampa Bay Water believed it had the flexibility to operate the facility at less than capacity. Negotiating teams composed of staff members and the chairs of each agency worked through a mediator to develop the agreement.
The agreement staggers District payments to Tampa Bay Water based on performance standards for the desalination facility:
*25 percent upon acceptance test
*25 percent after producing 25 million gallons per day (mgd) for four consecutive months
*50 percent after producing 12.5 mgd for 12 consecutive months
*Interest accrued (approximately $5 million) after producing 20 mgd for 12 consecutive months
The agreement also contains provisions that promote environmental restoration, including:
*Tampa Bay Water agrees to use its best efforts to keep central wellfield pumping at 90 million gallons per day during 2006 and 2007. The permit requires the central wellfield withdrawals to not exceed 90 mgd beginning in 2008;
*Tampa Bay Water will also provide 3 mgd to southern Hillsborough County to allow for reduced groundwater pumping in that stressed area.
The entire Partnership Agreement, including the amendments approved this week, expires on Dec. 31, 2010.