TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Approve Resoluion 2020-R-07. A Resolution of the City of North Port, Florida, Authorizing the City Commission to Accept the Transfer of Ownership via Special Deed, to Accept the Transfer of Ownership to Personal Property Related to the Wastewater Treatment Plant via a Bill of Sale, Authorizing the Mayor to Execute the Acknowledgement of Acquisition of Certain Infrastructure Improvements and Acknowledgement of Assignment of Warranties Between the City, WVID, and Garney Companies, Inc., Authorizing the Mayor to Execute the Acknowledgement of Acquisition of Certain Infrastructure Improvements and Acknowledgement of Assignment of Warranties Between the City, WVID, and Youngquist Brothers, Inc. Providing for Filing of Documents, Providing for Conflicts, Providing for Severability; and Providing an Effective Date.
Recommended Action
Approve Resolution 2020-R-07 of the City of North Port, Florida, Authorizing the City Commission to accept the transfer of ownership via Special Deed, to accept the transfer of ownership to personal property related to the wastewater treatment plant via a Bill of Sale, Authorizing the Mayor to execute the Acknowledgement of Acquisition of Certain Infrastructure Improvements and Acknowledgement of Assignment of Warranties between the City, WVID, and Garney Companies, Inc., Authorizing the Mayor to execute the Acknowledgement of Acquisition of Certain Infrastructure Improvements and Acknowledgement of Assignment of Warranties between the City, WVID, and Youngquist Brothers, Inc. Providing for Filing of Documents, Providing for Conflicts, Providing for Severability; and Providing an Effective Date.
Background Information
On March 29, 2005, Fourth Quarter Properties, XXXII, L.L.C. entered into an Interim Utilities Agreement to reserve initial capacity for 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 7 of the Agreement speaks to the construction of a Wastewater Treatment Plant by March 31, 2020. 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 includes a startup and testing period, training, inspection of the plant, as well as the transfer of operational permits and warranties. Operations commenced at the plant in late November 2019, with the plant meeting all water quality parameters in the permit in December 2019. 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. The permit transfer was issued by FDEP on February 28, 2020. The permit includes an Administrative Order due to the lack of an additional source of discharge besides the deep injection well. The WVID has applied for the reclaimed water permit for their property and a draft permit was sent to them on February 28, 2020. The Administrative Order lists the expected issuance date for the reuse permit by April 2020, and the Administrative Order will then be satisfied.
The Resolution presented is legally correct as to form.
Strategic Plan
This agreement supports the following goals of the Strategic Plan:
Health & Public Safety
Create and sustain a safe and healthy environment for residents and visitors of North Port
Infrastructure
Develop and maintain the City’s roads, bridges, storm water drainage, and water ways with creative infrastructure funding mechanisms; promote multimodal transportation opportunities throughout the City
Economic Development & Job Creation
Support a vibrant and diversified economy to create local jobs and attract private investments
Efficient & Effective Government
Develop and promote City governance that fosters trust and utilizes departmental strengths and innovative philosophies to facilitate effective and efficient provision of all City services
Financial Impact
To date, the City has collected $11,150,937 in wastewater capacity fees. Utilities will no longer be collecting wastewater capacity fees within the District boundary. As required by the existing agreement, the wastewater capacity fees collected over the years from the WVID are to be returned to the WVID in a phased approach over a five-year period once the new wastewater treatment plant has been dedicated to the City. In accordance with Section 7.1 (c) 1. of the agreement, the first payment of approximately $8,484,131 is due within 120 days of the City’s acceptance of the Wastewater Treatment Plant, with an additional estimated payment between $100,000 and $500,000 within the fiscal year. In addition, the FY21-24 Capital Improvement Plan will incorporate future anticipated payments of $480,000, $450,000 and $150,000 in the next three fiscal years with the final payment of approximately $1,070,937 in FY23/24. As usual, the CIP will be updated annually based on actuals collected and available funding.
The operational impacts for this new facility were budgeted to start in FY 19/20. After the plant is conveyed to the City, all operational expenses associated with the plant will be borne by the City. For FY 19/20 $629,997 is budgeted for these expenses. Operational expenses include the following: laboratory testing, chemicals, biosolids hauling, lawn care service, communication services, other miscellaneous costs, as well as personnel costs. The Chief Operator and Wastewater Treatment Plant Operator positions that are already on staff with Utilities are being utilized to staff this new plant. No new positions are being requested.
Procurement
Attachments:
1. Resolution 2020-R-07
2. Exhibits to Resolution 2020-R-07
3. 2019 Amended and Restated Utilities Agreement
4. FDEP Notice of Permit Issuance including Permit Number FLA984841-003 and Administrative Order AO-FLA984841-003
Prepared by: Michelle Tipp, Utilities Business Manager
Department Director: Richard Newkirk, Utilities Director