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City Manager Rejects RYAM Ethanol Plant Application; Fernandina Beach Commissioners Adopt New Water & Wastewater Capacity Fees

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By Michael Hernandez, 02-04-25

FERNANDINA BEACH, FLORIDA—City Manager Sarah Campbell sent an email response Feb. 4 rejecting the RYAM bioethanol plant application which can be appealed if done within 30 days. “We have no clear indication what RYAM will do, if they will pursue an appeal process,” said Campbell during her closing comments at the Fernandina Beach City Commissioners meeting. Her comments generated applause from the crowd.

Commissioners Consider New Water & Wastewater Capacity Fees

The Fernandina Beach City Commissioners considered adopting new water and wastewater capacity fees (Agenda 8.1) that would raise more money for replacement costs of these systems during a first reading of a highly debated ordinance that was passed 3-2 with Vice Mayor Darron Ayscue and Commissioner Tim Poynter voting no. The two options presented were: 1) keeping the costs as they are; or 2) raising capacity fees. City staff recommended that the additional capacity fees be assessed.

Fernandina Beach has four categories or water revenues: rates (monthly charges for services used); capacity fees (one time capacity buy-in); connection charges (placement of new water meter or sewer stub-out) and other fees (late charges, turn offs, etc.).

Capacity Fees are one-time charges assessed for new connections to reimburse utility systems for capital, fixed costs needed to provide capacity to be used; fixed costs for water and wastewater service (this includes wells, treatment plants, storage tanks, pumps, pipes, etc.); utility capital expenses, not operations.

A presentation made to the commissioners asked the question: “How shall we pay for growth?” A second question asked: “Should existing utility rate payers support system expansion to accommodate growth?” Capacity fees “are designed to make it possible for new customers to pay for their proportion of the system and capacity they use up that has been provided in the system for them.”

The argument for new customers to pick up this cost is based on the idea that new development pays its own way which then minimizes debt or reduces the need for future debt while maintaining an appropriate level of retained earnings and cash reserves to meet capital needs.

The staff presentation stated: “Florida statues requires communities to maintain adequate levels of service for public facilities and to anticipate and prepare for growth. It takes many years to build capacity into a system. It’s impossible to provide it at the same time the new growth happens. In addition, water and wastewater utilities must maintain infrastructure in good operating condition, requires adequate funding and continual repair and replacement just to keep up with normal usage and aging.”

Currently, 36 percent of the water treatment plant is being used. One hundred percent capacity would allow for 20,227 more service connections. Some 51 percent of the wastewater treatment plant is being used. Some 7,012 more service connections would raise capacity to 80 percent. The new capacity fees could raise up to $51 million in capacity fees.

City staff made the recommendation to raise capacity fees based on a massive study of other Florida rural cities done over seven years involving over 1,000 studies which have never faced a legal challenge. City staff also reported 650 septic tanks in the city.

Capacity Fees Commissioner Comments:

Vice Mayor Ayscue: No. “In 2003, the city brought forth a bond for a $33 million system that is worth $19 million. A study projected that by 2020 we were going to have a population of 29,601 and that our water usage would be 6.58 million gallons per day. Well, last year, we had water usage of 3.2 million gallons per day and the population of 29,601 is never going to happen.  We have zero growth.  We have had 70 residential permits issued in the last two years. It is 100 percent fallacy to think we are going to reach capacity.”

Commissioner Poynter: No. “We were not charging what we should have been charging. I see these new fees as punitive. We’re trying to take up a whole lot of (poor) past management and move forward. The city has not put in a new pipe. I am not supportive of these fees. We should leave them as they are. What is fair, is to have everyone contribute to these costs, not just new people.”

Commissioner Tuten: Yes. “We absolutely need to do this. We need to plan for the future replacement of our equipment with capacity fees. Perhaps we didn’t collect enough money these past years but we need to collect (it) now. We have to make sure we have no failing systems or we need $30 million for repairs.”

Capacity Fee Public Comments:

Browning S.: No. “I don’t live in the city but I work in Fernandina Beach. Do not raise these fees. This is unfair to new development.”

Austin N. (Northeast Florida Water Association): No. “A project in 2018 would have cost $31,000 but with these new fees the same project would have costed $95,000 or $64,000 more in fees. This will kill redevelopment.”

Richard D.: Yes. “Fees are going up for a lot of reasons. The city (must not) kick (the can) down the road. Evidence shows this is the way to go.”

Sheila C.: Yes. “We must remedy the past because we did not do it I the past. We have larger projects (coming).”

Julie F.: Yes. “One commission even reduced these fees which was a grave misjustice that hurt the people who live here and caused economic harm and produced pain. Our job is to provide for the people who live here now. People come here because they want to come here, if their finances can afford to come here. Yes, working class people have a hard time to be on the island but this is not going to change in the future. If it is worth coming here, it is worth the cost.”

Commissioners Authorize $2.385 Million for Amelia River Waterfront Park

Kimley-Horn Structural Engineering make seawall design and construction presentation during workshop.

The Fernandina Beach City Commissioners authorized (Agenda 7.1) an amount not to exceed $2.385 million for construction of the Amelia River Waterfront Park. Vice Mayor Darron Ayscue said, “I am in favor of flex space. People want parking there.”

Waterfront Park Public Comments:

Jenny M.: “I would ask that a waterfront playground be included. I enjoy our wonderful town. I grew up here. I have little kids growing up in our city. I hope we can get this playground downtown.”

Lawrence P. “I’m going to read you excerpts from the comprehensive plan. The city shall protect lowlands, shoreline and water front…commercial and recreational usage…Fernandina Beach is the birthplace of modern shrimping industry. While I don’t care for the pavilion or playground, we need to embrace our commercial fishing and crabbing industry.”

Other Commission Actions:

  • Nassau Humane Society Executive Director Chantal Scherer presented Simon, the dog of the month (Agenda 4.1). There are 150 animals in the shelter.
An artist rendering of luxury garage.
  • Chase Edwards of The Paddock Club Amelia Island, Inc. made a presentation of a luxury garage development at the airport (Agenda 4.2) on non-aeronautical property on three acres of land. The units would be 1,200 square feet (25 x 50 feet). This project would most likely not be supported by the commissioners due to the number of trees that would be removed from the airport property.
  • Approved (5-0) a proposal from Instituform Technologies LLC (Agenda 6.1) not to exceed $245,000 for the rehabilitation of portions of the city’s sewer system and stormwater system.
  • Approved (5-0) allocating just under $50,000 (Agenda 6.2) to replace the Fernandina Beach Golf Club driving range netting.
  • Approved (3-2) renewal of banking services agreement with First Federal Bank for a three-year term. No votes came from Vice Mayor Ayscue and Commissioners Tuten.
  • Approved (4-1) Sea La Vie subdivision for nine total home sites located at S. 13th Street on 1.29 acres of land (Agenda 7.3). The no vote came from Commissioner Minshew.
  • Passed annexation (Agenda 7.4) of 2144 Rayon Road on .17 acres of land (5-0).
  • Passed annexation (Agenda 7.5) of 1438 Cashen Drive on .34 acres of land

(5-0).

  • Approved grant application (Agenda 7.6) not to exceed $450,000 for waterways assistance program for Fernandina Harbor Marina maintenance dredging (5-0).
  • Approved grant application (Agenda 7.7) for replacement Fernandina Harbor Marina pump out boat that will total $152,00 but most of the money will come from the sale of the current boat (5-0).
  • Approved the Moran Development Group, LLC for repair 60 linear feet of storm drain line in the Isle De Mai subdivision (Agenda 7.8). Passed 5-0.
  • Approved Frank Miller to the Airport Advisory Commission (Agenda 9.1) by 5-0 vote.
  • Left an opening on the Historic District Council (Agenda 9.2) rather than appoint Amanda Peeples. Motion failed 3-2 with only Commissioner Tuten and Mayor Auntun voting yes.
  • Appointed John Anderson (Agenda 9.3) to the Marna Advisory Board (5-0).

Other Public Comments (Agenda 5.0):

Pete S.: “I would like to commend the hunger packing done at the recreation center. In (90 minutes), 41,000 meals were packed.”

Christine S.: Questioned selective code enforcement./Kevin A: Spoke on golf cart usage./Paul L.: Spoke on how to eliminate suicides.

Former Mayor Robin L.: “I am proud to stand with Fernandina Beach Pride which has raised $23,000 for student scholarships in our community.”

Kelly Y.: “I am advocating against the sexualization of children. Amelia Island Pride is disgraceful and against Florida obscenity laws.”

Ms. Yates later sent this to Citizens Journal:

Kelley Yates presents her objections to PRIDE events at 2-4-25 Fernandina Beach Commission meeting..

https://www.facebook.com/classy.conservatives.2024/posts/pfbid0w6EswfE91hc8nSKqV5vbiuqZcisHRoPse8G2P1GCyV3mQPfJEH2GAJNBPV2sMhNYl

Commissioner Contacts:

Commissioner Joyce M. Tuten/Seat 1 (904) 206-6676 (Term Expires 2028).

Commissioner Genece Minshew/Seat 2 (904) 780-4188 (Term Expires 2028).

Commissioner Tim Poynter/Seat 3 (904) 415-6533 (Term Expires 2028).

Mayor James Antun/Seat 4 (516) 547-5309 (Term Expires 2026).

Vice Mayor Darron Ayscue/Seat 5 (904) 780-4480 (Term Expires 2026):.

Regular Meeting Agenda (3 Pages/Agenda Packet: 408 Pages)

https://www.fbfl.us/867/Agendas

Watch: 3 hours, 17 minutes

https://www.fbfl.us/814/City-Commission-Meeting-Videos

Special Workshop (53 minutes): Seawall Design and Construction (Kimley-Horn Structural Engineering):

Kimley-Horn Structural Engineering stated the city’s plan to pull the wall out of wetlands which means that the seawall is no longer under the management of the Army Corp of Engineers and replace the dock with two floating docks. At issue is to get with all property holders and the railroad to finish the design.

Surveying is still needed by field teams.  Private property lease agreements are needed as well as additional permits and bid packages will also be needed. Costs have not been fully determined but 90 percent of the design has been completed.

Seawall Concerns raised by Commissioners:

Mayor James Antun: “What is the cost of bid and time still needed. We need to know more about project management.”

Tim Poynter: “We still have no resiliency wall to protect the city.”

Genece Minshew: “We have paid you $560,000 and what have we gotten? We need to tell you what is needed even through the permitting process determines whether we hire somebody. Everyone’s intentions are good but this is a competency that the city staff does not have. We need basic project management.”

Joyce M. Tuten: “Will you please push back on us, if it is not going to work or is challenging.”

Vice Mayor Darron Ayscue: “I will support seaward construction.”

Public Comments:

Mac M.: “I like this presentation focused on segment one that fits within the timeline.”

Michael S.: “It looks like this will protect us from a king tide; but at what point will a storm reach the wall? How much protection are we buying? When does the wall get breached if it is a Category One storm? A big storm is going around the wall or over the top of the wall.”

Sheila C.: “With all these large (city) projects where is the structural engineering for the project? We need to have an in-house manager.  We need a certified project manager especially at these price tags.”


Michael Hernandez, from California, is co-founder of the Citizens Journal—Ventura County’s online news service. He is a former Southern California daily newspaper journalist and religion and news editor. Mr. Hernandez can be contacted at [email protected] and is editor of the weekly “Stories Speak Volumes.”

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