To Advance or Not to Advance

One cost of advancing the Longboat Key beach project to 2011 from the scheduled year 2012, on a $45 million bond at 3%, is $1.3 million in yearly interest on the bond a year early.

So far the town manager’s sole reason for advancing the project is the Port Dolphin sand and the possible loss of up to $5 million in payments from the pipeline company, if Port Dolphin decides to construct the pipeline.

The following considerations should be part of the cost/benefit analysis of advancing the project one year.

1. The taxpayers will receive one less year of value for the current $26 million bond or $660,000.

2. The taxpayers will have one fewer years when they are not paying for a beach bond.

3. The taxpayers will pay $1.35 million dollars interest on the new bond one year early

4. Exactly how many cu/yds of sand from the Port Dolphin borrow-sites will be used on the proposed beach project? We should know this.

5. Is there a sand transportation differential between the sand coming from the north end of Anna Maria Island and the sand coming from the more distant Port Dolphin borrow-sites?

6. How is the town reimbursed by Port Dolphin, by the yard or as a lump sum? The town manager has stated that the town may receive up to $5 million so I expect there is some sort of yard/dollar formula.

7. The beach consultants say 2 of 5 sections of the beach on Longboat Key will receive the darker courser Port Dolphin sand. If the total project is 1.8 million yards of sand, then perhaps approximately 2/5ths of that amount will be taken from the Port Dolphin sites or 720,000 yards of sand.

8. By advancing the project by 1 year, to receive possible compensation form Port Dolphin, each yard of the 720,000 yards from Port Dolphin will have an added cost of $1.80 to cover the added early interest on the $45 million bond.

9. I estimate that the town has already spent over $500,000 fighting the Port Dolphin pipeline, so there is another $1.40 added on to the cost of each yard of sand coming from the Port Dolphin sites. These are only approximations and are not represented as actual amounts. However, we should know the actual figures before we move forward.

If the Port Dolphin sand does have hidden costs in the range of $3.20 per yard, is it worth advancing the beach project one year, even if we do recive some money from the pipeline company? Remember we will be getting one less year of life from the current beach bond which makes that taxpayer transaction 14% more costly, while at the same advancing payments on the next beach bond by one year.

The Longboat Pass inlet management study may produce findings that preclude needing as much sand as projected in the currently proposed beach project. Why encumber the residents with additional taxes that may not be required after the completion of the inlet study.

The interim sand placement at the north end alleviates the necessity to act this year as all the other beaches are performing on schedule for the original 2012 beach project.

If Port Dolphin is the sole reason being advanced as the driving factor in advancing the beach project by a year, I say we should know a lot more about what we will actually receive from Port Dolphin and then run a cost/benefit analysis. Uninformed decision-making usually has its problems.

The town and the taxpayers might save a lot of money if an alternative beach maintenance technology is evaluated and found to be effective in acquiring sand, at no cost through accretion, and then retaining the sand for extended periods of time.