TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA
TITLE: A Resolution of the City Commission of the City of North Port, Florida, Accepting the Conveyance of a Water Treatment Plant, Associated Warranties and Intangible Property, as Well as ±6.80 Acres of Real Property Located North of Manasota Beach Road and Described as a Tract of Land Lying in Section 9, Township 40 South, Range 20 East, Bearing Sarasota County Property Appraiser Parcel Identification Number 0809060100; Providing for Filing of Documents; Providing for Conflicts; Providing for Severability; and Providing an Effective Date.
Recommended Action
Approve Resolution No. 2023-R-38 as presented and authorize the City Manager and/or Mayor to execute all necessary documents as required by the contract and/or conveyance documents.
Background Information
On March 29, 2005, Fourth Quarter Properties, XXXII, L.L.C. entered into an Interim Utilities Agreement to reserve initial capacity for the development of the Thomas Ranch Project. Development ensued based on the City’s commitment to serve 5,600 ERCs of water permanently and 3,600 ERCs of wastewater on a temporary basis until the West Villages Improvement District (WVID) wastewater treatment plant could be built. On February 27, 2007, the Interim Utilities Agreement was replaced by the Amended and Restated Utility Agreement and contemplated a new wastewater treatment plant and water treatment plant to be constructed by the WVID and dedicated at no cost to the City. Several amendments to the agreement were approved between May 29, 2007, and September 13, 2010.
In 2014 Mattamy Sarasota, LLC purchased the property under the name Thomas Ranch Land Partners North Port, LLLP, subsequently becoming Manasota Beach Ranchlands, LLLP. To recognize the significant changes that have taken place and bring all terms current, the WVID, West Villages, LLLP and the City entered into the 2019 Amended and Restated Utilities Agreement, which was approved by Commission on September 10, 2019. Section 8 of the Agreement speaks to the construction of a Water Treatment Plant. Exhibit F in the Agreement provides for the initiation of plant operations and the conveyance of the plant to the City. Included in Exhibit F are the following related to plant operations: a plant transition plan that consists of a startup and testing period, training, and inspection of the plant, as well as the transfer of permits, title, and warranties.
Operations commenced at the plant in late March 2023. On May 3, 2023, the Florida Department of Health (FDOH) in Sarasota County issued the Southwest Water Treatment Plant Partial Certification; Permit #: 0208589-192-WC. The plant met Final Completion on May 23, 2023. Exhibit F, Section 3. C. 1-11 provides administrative items to be completed for the transfer of the plant from WVID to the City. All items in Exhibit F, in its entirety, have been completed, and the plant is now ready to be accepted by the City. Form 62-555.900 (8), Application for Transfer of a Public Water Supply Construction Permit to convert the system to the City’s Public Water Supply ID number has been submitted to Sarasota County Department of Health, however, per Florida Department of Environmental Protection (FDEP) rules, cannot be effective prior to the sale or legal transfer of ownership of the project.
The Resolution presented is legally correct as to form.
Strategic Plan
Quality of Life
Infrastructure & Facilities Integrity
Good Governance
Economic Development and Growth Management
Environmental Resiliency and Sustainability
Financial Impact
The SWWTP was designed, permitted, constructed and is now being dedicated to the City at no cost to the City, per the Developer Agreement requirements.
The operational impacts for this new facility were budgeted to start in FY 22/23. After the plant is conveyed to the City, all operational expenses associated with the plant will be borne by the City. For FY 22/23 $919,690 is budgeted for these expenses. Operational expenses include the following: laboratory testing, chemicals, lawn care service, communication services, other miscellaneous costs, as well as personnel costs. The Chief Operator, Water Treatment Plant Operator and two trainee positions that are already on staff with Utilities are being utilized to staff this new plant. No new positions are being requested.
Procurement
N/A
Attachments:
1. Resolution 2023-R-38
2. Exhibits to Resolution 2023-R-38
3. 2019 Amended and Restated Utilities Agreement
4. FDOH Notice of Partial Certification; Permit Number 0208589-192-WC
5. FDEP Form 62-555.900 (8) Application for Transfer of a Public Water Supply Construction Permit
Prepared by: Michelle Tipp, Utilities Business Manager
Department Director: Nancy Gallinaro, Utilities Director