TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve the 2024 Utilities Agreement - Water Supply Between the City of North Port, Wellen Park, LLLP, and West Villages Improvement District for the City to Provide Approximately 2 Million Gallons of Potable Water Per Day.
Recommended Action
Approve the 2024 Utilities Agreement - Water Supply between the City of North Port, Wellen Park, LLLP, and West Villages Improvement District for the City to Provide Approximately 2 Million Gallons of Potable Water Per Day.
Background Information
The current Agreement with Wellen Park, LLLP, and West Villages Improvement District is the 2019 Amended and Restated Utility Agreement dated September 10, 2019. This Agreement will remain in effect and only the details outlining the purchase of 2 million gallons per day (MGD) from the Peace River Manasota Regional Water Supply Authority (PRMRWSA) are included in this 2024 Utilities Agreement for Additional Water Supply.
The 2019 Agreement required Wellen Park, LLLP to design and construct a Water Treatment Plant expansion to provide additional water to meet the needs of the future development. This 2024 Agreement provides for obtaining 2 MGD for future Wellen Park development in lieu of construction of a Water Treatment Plant expansion. The Wellen Park Water Master Plan prepared by Kimley Horn and Associates, Inc., and last updated June 2023, provides projections for development in Wellen Park that show that additional water supply will be required by the year 2027.
At this time, additional water is planned to be available from the PRMRWSA to supply the additional water needed and a commitment must be made at this time.
On October 5, 2005, the City of North Port signed the PRMRWSA 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 as well as changed the City’s allocation of water to 2.865 MGD.
On October 22, 2024, the City Commission approved the Third Amendment to the PRMRWSA MWSC. The Third Amendment contained exhibits showing additional water supply being requested by each customer or member due to the new reservoir and Peace River plant expansion projects. Contained in the exhibits was the City of North Port’s request for an additional 2 MGD, which is contingent upon approval of this 2024 Utilities Agreement for Additional Water Supply between the City of North Port, Wellen Park, LLLP (“WP”), and West Villages Improvement District (the “District”)
WP owns real property located within the City of North Port, described as Exhibit A of the 2024 Utilities Agreement (the “Agreement”). The District is an independent special district created to, among other things, finance and construct certain potable water and wastewater facilities and other improvements within the area the District governs, described as Exhibit C of the Agreement. WP has approached the City requesting additional water supply to serve the properties within the district boundaries.
All costs associated with obtaining the additional water supply for WP will be borne by WP and the District including capital investment and finance costs as well as their proportionate share of operational costs. Once this 2024 Agreement with the District is approved by the Commission, the Agreement will be presented to the District board for their approval on November 14, 2024. Once all parties to the contract have agreed, written notification will be sent to PRMRWSA by the Contract deadline of November 15, 2024, for the City to obtain the additional 2 MGD.
The 2024 Utilities Agreement - Water Supply between the City of North Port, Wellen Park, LLLP, and West Villages Improvement District for the City to Provide Approximately 2 Million Gallons of Potable Water Per Day has been reviewed by the City Attorney and is legally correct as to form.
Strategic Plan
Infrastructure and Facilities
Financial Impact
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 this Agreement between the City of North Port, Wellen Park LLC, and West Villages Improvement District.
Procurement
Not applicable.
Attachments:
1. 2024 Utilities Agreement - Water Supply
2. 2019 Amended and Restated Utilities Agreement
Prepared by: Michelle Tipp, Utilities Business Manager
Department Director: Nancy Gallinaro, Utilities Director