TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: An Ordinance of the City of North Port, Florida, Amending the Code of the City of North Port, Florida, Appendix A - City Fee Schedule; Amending City-Wide Fees; Utilities Fees; Providing for Findings; Providing for Conflicts; Providing for Severability; Providing for Codification; and Providing an Effective Date.
Recommended Action
Option 1: Continue Ordinance 2025-30 to second reading on October 14, 2025, as presented.
City Commission Options
Option 1: Continue Ordinance 2025-30 to second reading on October 14, 2025, as presented.
* Pros: Provides the Utilities Department the ability to recover the costs of providing utility services.
* Cons: The Utilities Department miscellaneous fees will be increased for certain services, which will impact utility customers for the identified services recommended to increase.
Option 2: Only retain some of the fees included in Ordinance No. 2025-30 and continue Ordinance 2025-30 to second reading on October 14, 2025, to include the changes made by the Commission during the first reading.
* Pros: The impact will be lessened to utility specific miscellaneous fees if only certain ones are adopted.
* Cons: Only the chosen adopted miscellaneous fees will recover the costs of providing the services, which will ultimately require subsidization by other fees and charges or a downgrade in level of service.
Option 3: Do not continue Ordinance No. 2025-30 to second reading on October 14, 2025, and keep the miscellaneous fees the same.
* Pros: There will be no financial changes to the miscellaneous fees, therefore, no financial impact to utility customers.
* Cons: The Utilities Department will not be able to recover the cost of providing the services, which will ultimately require subsidization by other fees and charges or a downgrade in level of service.
Background Information
The Utilities Department budgeted for a comprehensive rate analysis to be conducted during Fiscal Year 2025. As a best management practice, this study was performed by an independent third-party consultant with expertise in utility rate structures. Engaging an outside specialist helps ensure the long-term financial health of our water and wastewater systems, supports fair and equitable billing across all customer classes, and aligns our rate structure with future capital improvement needs and infrastructure planning.
Below is a timeline of events related to the procurement of this project:
> December 16, 2024: The Utilities Department issued RLI 2025-01 under Contract No. 2023-32 for Professional Services related to City Fees, Rates, Methodologies, and Assessments.
> January 20, 2025: Two (2) proposals were received by the solicited due date.
> January 31, 2025: The proposal evaluation and ranking meeting was held where GovRates, Inc. was selected to proceed with the formal rate analysis based on overall ranking.
The analysis reviewed a 10-year outlook encompassing staffing, operational costs, and capital planning. The evaluation considered recent significant cost increases across insurance, chemicals, fuel, electricity, construction, and supplies.
Following a comprehensive review of services provided by the Utilities Department, the rate analysis has recommended updates to certain miscellaneous fees to better reflect the actual cost of delivering these services. Most of the proposed adjustments are minimal, with the more notable increases related to meter installation fees.
These increases are primarily driven by the implementation of the Advanced Metering Infrastructure (AMI) project. The costs associated with the new AMI meters have been incorporated into the updated meter fees to ensure full cost recovery.
Additionally, a new fee is being proposed for endpoint replacements. As AMI meter installations have progressed, incidents of contractors inadvertently damaging endpoints during construction have increased. Currently, there is no mechanism to recoup the cost of these damages. The proposed endpoint change-out fee would allow the Utilities Department to recover those costs when such incidents occur.
Ordinance No. 2025-30 has been reviewed by the Interim City Attorney and is legally correct as to form.
The Business Impact Estimate has been posted through City Clerk on August 29, 2025, in accordance with Fla. Stat. ??166.041(4)(a) (2024).
Strategic Plan Pillar
Good Governance
Financial Impact
There will be a negative financial impact if recommended changes are not instituted. The cost of providing the services will be subsidized by other fees and charges and/or current level of service will not be maintained.
Procurement
Not applicable.
Attachments:
1. Ordinance No. 2025-30
2. Business Impact Estimate
Prepared by: Michelle Tipp, Utilities Business Manager
Department Director: Tricia Wisner, Interim Utilities Director