TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion and Possible Direction Regarding the Public Private Partnership (P3) Conceptual Proposal Related to the Police Department Headquarters Facility, Solid Waste Transfer Station, and Wastewater Treatment Facility.
Recommended Action
Discussion and possible direction regarding the Public Private Partnership (P3) Conceptual Proposal related to the Police Department Headquarters Facility, Solid Waste Transfer Station, and Wastewater Treatment Facility.
Background Information
The following provides a chronological order of events regarding the proposed referendum questions and potential funding options for the Police Department Headquarters Facility, Solid Waste Transfer Station, and Wastewater Treatment Facility:
Ø February 11, 2025: During the City Commission Regular Meeting, the Commission approved the following Ordinances outlining proposed referendum questions for the May 13, 2025, Special Election:
ü Ordinance No. 2025-03: To finance a new Police Department Headquarters Facility, shall the City of North Port be authorized to issue bonds in one or more series in a total aggregate principal amount not to exceed $115,000,000, maturing no later than 30 years from issuance, bearing interest at no more than the maximum lawful rate and payable from ad valorem property taxes levied in amounts sufficient to pay debt service on such bonds?
ü Ordinance No. 2025-04: To finance a new Solid Waste Transfer Station, shall the City of North Port be authorized to issue bonds in one or more series in a total aggregate principal amount not to exceed $14,000,000, maturing no later than 30 years from issuance, bearing interest at no more than the maximum lawful rate and payable from the revenues of the City’s Solid Waste District?
ü Ordinance No. 2025-05: To finance capital improvements to the City’s Wastewater Treatment Facility located on Pan American Boulevard, shall the City of North Port be authorized to issue bonds in one or more series in a total aggregate principal amount not to exceed $17,000,000, maturing no later than 30 years from issuance, bearing interest at no more than the maximum lawful rate and payable from the revenues of the City’s water and sewer utility system?
The referendum questions were not successful; therefore, the City will not be able to issue debt related to these projects.
Ø May 27, 2025: During the City Commission Regular Meeting, alternative options were provided for funding these capital projects. The Commission made the following motions:
ü Agenda Item 25-2306: To explore Certificates of Participation (COPS), Public Private Partnerships (P3), State Revolving Fund (SRF) Loans, Bank Loans and Lines of Credit, Increasing Fund Balance Reserves, and Pay-As-You-Go (Pay-Go) Financing for the New Police Department Headquarters Project, and to bring back the findings and recommendations for further discussion and possible action at a future meeting.
ü Agenda Item 25-2307: To explore Certificates of Participation (COPS), Public Private Partnerships (P3), and a possible solid waste fee increase to pay for that COPS agreement and to bring it back to Commission future discussion at a future meeting.
ü Agenda Item 25-2308: To explore Certificates of Participation (COPS), Public Private Partnerships (P3), including west villages option, State Revolving Fund (SRF) Loans, and increasing fund balance reserves for this project.
Per the Code of the City of North Port, Florida, the procurement of P3 Agreements must follow the provisions of Section 2-420, Public-Private Partnerships (P3). A private entity seeking review of a P3 Conceptual Proposal must submit the proposal to the City’s Finance Department along with a review fee. The Finance Department forwards the proposal to the City Manager’s Office for review and consideration. The P3 conceptual proposal must contain information sufficient to inform the City about the overall character of the proposed P3 qualifying project, the general experience of the private entity, and the general strategies to ensure successful project delivery.
The City of North Port has received an Unsolicited P3 Conceptual Proposal from Florida Development Solutions, LLC (FDS), accompanied by the required $15,000 review fee. The proposal encompasses three infrastructure projects: Police Department Headquarters, Wastewater Facility Expansion & Renovation, and Solid Waste Transfer Station.
Following initial review, the City Manager has determined that the Unsolicited P3 Conceptual Proposal meets the Code requirements for Commission consideration and is suitable for presentation to determine whether to proceed with substantive review.
The City Commission is requested to decide regarding the P3 Conceptual Proposal. The Commission has two (2) available options:
Ø Option 1: Rejection Without Substantive Review Should the Commission elect to reject the P3 conceptual proposal without conducting substantive review, the City will return the $15,000 proposal review fee to Florida Development Solutions, LLC.
Ø Option 2: Acceptance for Substantive Review Should the Commission accept the P3 conceptual proposal for substantive review, the City Manager will provide written notification to the private entity regarding the anticipated timeframe required for the City to complete comprehensive review of the unsolicited P3 conceptual proposal.
Strategic Plan
Good Governance
Financial Impact
Not applicable.
Procurement
Not applicable.
Attachments:
1. FDS P3 Proposal
2. North Port City Code Sec. 2-402 and Sec. 2-420
Prepared by: Tiffany Fowler, Accountant III
Department Director: Irina Kukharenko, CPA, Interim Finance Director