By Steve Plunkett
Gulf Stream has taken a $52,333 step toward flipping from Delray Beach to Boynton Beach for its drinking water.
Even without a formal agreement, town commissioners authorized spending that amount to pay for the engineering costs of extending a main water line from Seacrest Boulevard east along Gulfstream Boulevard almost to the FEC railway tracks.
Boynton Beach city commissioners approved a contract with their consulting engineers for the work on May 23. A second phase will cover the pipe from the railroad tracks to a connection point at Gulf Stream’s Place Au Soleil neighborhood.
Assistant Town Attorney Trey Nazzaro said Boynton Beach estimates both phases will cost Gulf Stream $1.8 million “with a wonderful swing of $1.3 to $2.3 million anticipated.”
The town will also have to pay a $400,000 “capacity facility fee,” he said.
Boynton Beach and Gulf Stream traded draft agreements about two months ago for a 25-year pact on drinking water. Boynton Beach already was the town’s backup supplier in case Delray Beach’s water system had a problem.
Delray has been the main supplier since at least 1976.
Boynton Beach officials drew up the details for the extra engineering work and then obtained a quote from consulting engineers Calvin, Giordano and Associates Inc.
“So, based on all those efforts, it’s pretty clear that they want to bring us on as a customer and generate some additional revenue,” Nazzaro said. “And then of course there will be cost savings to the town over time with some immediate benefits,” including higher water pressure at the tap.
Boynton is offering a rate of $3.75 per 1,000 gallons of water, slightly less than the $3.81 per 1,000 that Delray Beach is currently charging. But Delray plans to raise its rates to $4.49 in October and $5.20 the following year.
Delray, which is designing a new water plant, told Gulf Stream in April that it will stop providing the town with drinking water in June 2025.
Calvin, Giordano said the first phase of the work to connect Boynton Beach and Gulf Stream would be complete in July or August 2025, with the second phase being finished by the end of 2025.
“Countless hours have gone into these discussions with both Delray Beach and Boynton Beach officials, and once the timing becomes more certain, I know we can work amicably on a transition plan with both cities,” Nazzaro said.
The work will be done in conjunction with a road project on Gulfstream Boulevard, which separates Boynton Beach and Delray Beach. Both cities are sharing the cost of improving the road.
Town Manager Greg Dunham said he has begun discussions with Seacoast Bank on borrowing money to pay for the water main extension as well as an expected $5 million shortfall on Gulf Stream’s road and drainage improvement project.
The Florida League of Cities, which could link the town with low-interest loans, recommended he contact local banks first to see what rates are available.
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