TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA
TITLE: Approve the Third Amended Peace River Regional Water Supply Authority Master Water Supply Contract and Approve and Authorize the Mayor to Execute the Written Notification of Additional Water Supply Contingent Upon Approval of a Financial Agreement between the City of North Port and West Villages Improvement District
Recommended Action
Approve the Third Amended Peace River Regional Water Supply Authority Master Water Supply Contract and approve and authorize the Mayor to execute the written notification of additional water supply contingent upon approval of a financial agreement between the City of North Port and West Villages Improvement District
Background Information
On October 5, 2005, the City of North Port signed the Peace River Manasota Regional Water Supply Authority (PRMRWSA) Master Water Supply Contract (MWSC). On April 28, 2008, the City of North Port approved Amendment 1 to the PRMRWSA MWSC, which allowed a reduction in future contractual obligations due to the then economic downturn. On June 8, 2015, the City of North Port approved Amendment 2 to the PRMRWSA MWSC, which resolved the dispute between the PRMRWSA and their customers regarding the rebuild of portions of the PRMRWSA plant built in 1991.
The Third Amendment to the PRMRWSA MWSC was discussed and reviewed by staff from all customers, including Sarasota County, Charlotte County, DeSoto County and the City of North Port as well as member, Manatee County. This amendment is being proposed to clean up some older, now irrelevant language, for instance, language related to projects that have been completed already and updating annual payment sections that have since been paid off, updating North Port and the PRMRWSA addresses, etc. Other changes include the Desoto payment allocation, water allocation, new water supply demands, and cost allocation percentages.
The Desoto payment was agreed upon and derived from the use of Desoto’s facilities and outlined in the MWSC section 16.7, which states that if the quantities of water allocated to the Authority under the Southwest Florida Water Management District water use permit are modified, or if additional entities become customers of the Authority, then the amount of the Desoto payment shall be re-addressed by all parties in the Contract. The PRMRWSA increased their water use permit from the original 32.7 million gallons per day (MGD) in 1996 to 80 MGD in 2019, therefore, that increase in the water permit contractually requires the Desoto payment to be re-addressed. The Authority was working with their board in early 2024 to get a consensus for a methodology for the Desoto payment. That change is outlined in Exhibit A.
The water allocation and new water supply, Exhibits B and C, respectively, outline the changes in water supply requested by each member or customer due to the new reservoir and Peace River plant expansion. The City of North Port’s request of an additional 2 MGD is contingent upon approval of a separate financial agreement between the City of North Port and West Villages Improvement District. Written notification must be sent to PRMRWSA by November 15, 2024, for the city to obtain the additional 2 MGD, as shown on page 40 of the agreement. If the agreement between the City of North Port and West Villages Improvement District is not approved, the written notification for the additional water supply will not be sent to PRMRWSA and Sarasota County will assume the additional capacity that the city does not take.
The Third Amended PRMRWSA MWSC has been reviewed by the City Attorney and is legally correct as to form.
Strategic Plan
Infrastructure and Facilities
Financial Impact
The Desoto Payment for the City of North Port will have a phased in approach to increased payments outlined in Exhibit A.
The additional 2 MGD of water supply will have no cost to the City of North Port, as the financial obligation will be met with an agreement between the City of North Port and West Villages Improvement District.
Procurement
N/A
Attachments:
1. Third Amendment to PRMRWSA Master Water Supply Contract
2. PRMRWSA Master Water Supply Contract
3. Amendment 1 to PRMRWSA Master Water Supply Contract
4. Amendment 2 to PRMRWSA Master Water Supply Contract
5. Letter of Commitment
Prepared by: Michelle Tipp, Utilities Business Manager
Department Director: Nancy Gallinaro, Utilities Director