Re Wholesale Water Contract

							                                         BOARD OF COUNTY COMMISSIONERS
                                                 840 West 11 th Street
                                             Panama City, Florida 32401
                                              Telephone: (850) 248-8140
                                                 Fax: (850) 248-8153

                                                     December 2, 2009
BOARD OF COUNTY

 COMMISSIONERS
           Honorable Scott Clemons
  www.co.bay.fl.U5        City of Panama City
                          P.O. Box 1880
                          Panama City, FI 32402

                          Re: Wholesale Water Contract

                          Dear Mayor Clemons:
 POST OFFICE BOX 1818

 PANAMA CITY, FL 32402

                          At our December 1, 2009 meeting, the Bay County Commission
                          appointed me to serve as the County's liaison with Panama City for all
                          water related issues.

                          In response to your December 1, 2009, correspondence to Chairman
   COMMISSIONERS:

                          Dozier and in anticipation of future discussions I offer the following:

     MIKE NELSON
            1.	 Bay County submitted a draft contract to Panama City on October
      DISTRICT I

                                 3, 2007, and received the City's response June 28, 2008. Your
                                 criticism of our slow review time appears unfair and indicates you
   GEORGE B. GAINER

      DISTRICT II

                                 have been misinformed.
                             2.	 The 2007 and 2009 wholesale water rates were developed with
   WILLIAM T. DOZIER

                                 the full knowledge and participation of Panama City
      DISTRICT III
              representatives, as well as the other wholesale customers.
                             3.	 You advised former Chairman Girvin of your intention to begin to
    JERRY L. GIRVIN
             withhold "disputed funds" in January 2010 if no progress on
      DISTRICT IV
               contract issues was realized. I can only wonder why you
                                 accelerated the date two months to November.
     MIKE THOMAS
            4.	 County Commission and staff calendars indicate that County and
      DISTRICT V

                                 Panama City staff have met no less than five times since October
                                 2007 to discuss water issues. You attended some of these
                                 meetings in person. In fact, our staff met twice this November
                                 and made progress on contract and water service issues.
    EDWIN L. SMITH
          5.	 Bay County absolutely objects to Panama City withholding water
   COUNTY MANAGER

                                 payments and rejects your apparent unilateral decision to put a
                                 sixty day deadline on paying the City's water bill. Personally, I
                                 would feel better if you would run this by the City Commission first
                                 as I did with the County Commission.
           6.	 Panama City's withholding payments of its water bill imposes a
               severe burden on Bay County's ability to produce water for our
               rate-paying customers. It also puts a serious strain on or ability to
               resolve this and other matters in a civil and co-operative spirit.

    Scott, we have a mutual responsibility to the County and the City (of
    which we are both residents) to resolve this issue, as well as future
    matters without involving outside lawyers and lawsuits. Taxpayers should
    not have to sue taxpayers.

    To resolve this dispute, I am prepared to provide all pertinent data used
    to establish the water rate or any other action my Board has endorsed.

    Please feel free to call me anytime. I know it's the holiday season, but I
    feel these issues are serious and need to be resolved now. I am at your
    disposal and willing to meet with you at your earliest convenience.
    Please contact Gina Gainey at 248-8142 to make an appointment.


/



    George Gainer
    County Commissioner Dist. 2

    cc:	      County Commission
              Panama City Commission
              County Manager
              City Manager