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 Funding Options for the Solid Waste Transfer Station Project (SW22TS).
Recommended Action
Option 1: Direct the City Manager to prioritize funding options for the Solid Waste Transfer Station (SW22TS), giving first consideration to the Pay As You Go approach utilizing Non-Ad Valorem Assessments, followed by Certificates of Participation (COPs) and to reject the Public-Private Partnership (P3) option in accordance with the Code of the City of North Port, Florida, Section 2-420, Public-Private Partnerships (P3), subsection (7)b.
City Commission Options
Option 1: Direct the City Manager to prioritize funding options for the Solid Waste Transfer Station (SW22TS), giving first consideration to the Pay As You Go approach utilizing Non-Ad Valorem Assessments, followed by Certificates of Participation (COPs) and to reject the Public-Private Partnership (P3) option in accordance with the Code of the City of North Port, Florida, Section 2-420, Public-Private Partnerships (P3), subsection (7)b.
• Pros: Provides clear direction to staff from the City Commission on prioritization of funding options.
• Cons: Results in the rejection of the proposed Public-Private Partnership (P3) option and Certificate of Participation.
Option 2: The City Commission provides an alternate ranking list of funding options for the Solid Waste Transfer Station Project (SW22TS).
• Pros: Staff’s continued work to identify funding for this project will align with the Commission’s ranking of funding options.
• Cons: Alternative funding option ranking may result in higher overall project cost.
Background Information
The following provides a chronological order of events regarding the Solid Waste Transfer Station Project:
Ø May 27, 2025: During the City Commission Regular Meeting, funding options for the Solid Waste Transfer Station Project were discussed. At the conclusion of their discussion, the Commission approved the following motions:
1. Motion: To direct the City Manager to explore the use of Certificates of Participation (COPS), along with a potential solid waste fee increase to support the funding of the COPS Agreement, and to bring the findings back to the Commission for discussion at a future meeting.
2. Motion: To amend the original motion to add Public-Private Partnerships (P3) to the motion.
Ø July 8, 2025: During the City Commission Regular Meeting, the Commission considered an Unsolicited Public-Private Partnership (P3) Conceptual Proposal submitted by Florida Development Solutions, LLC. The proposal encompassed the following three capital projects:
ü Police Department Headquarters Facility
ü Solid Waste Transfer Station
ü Wastewater Treatment Facility.
At the conclusion of their discussion regarding the Solid Waste Transfer Station, the Commission approved the following motion:
1. Motion: To direct the City Manager to work with bond counsel, PFM and staff to bring back details for the Solid Waste Transfer Station Project including the cost, pros, and cons and comparing the P3 process with the City conducting their own COP process.
Ø July 22, 2025: During the City Commission Regular Meeting, the Commission approved the following motions regarding the Unsolicited Public Private Partnership (P3) Conceptual Proposal related to the Solid Waste Transfer Station:
1. Motion: To accept the P3 conceptual proposal for the transfer station for substantive review and direct the City Manager to provide written notification to the private entity outlining the anticipated timeframe for the City to complete its comprehensive review of the unsolicited proposal.
2. Motion: To direct the City Manager to work with staff to complete a realistic assessment of the timeframe and costs for the City of North Port to put together its own COPS process regarding the Solid Waste Transfer Station.
In response to Commission direction, staff has completed a review of the P3 proposal and other possible funding alternatives, including Non-Ad Valorem Assessments and COPs, for the Solid Waste Transfer Station (SW22TS). The following provides staff’s findings and recommendations:
1. P3 Option: The P3 option results in the highest cost and involves a potential land transfer. Upon review, staff does not recommend this option. The Code of the City of North Port, Florida, Section 2-420, Public-Private Partnerships (P3), subsection (7) states:
“Upon completing its review of the P3 conceptual proposal, the city will notify the private entity in writing of the city's position regarding the proposed project. The city manager may:
a) Decide not to pursue the proposed project;
b) Decide to pursue the proposed project or a similar project, using other procurement methods (which, if open to private companies, the private entity may compete if otherwise qualified); or
c) Decide to continue considering the proposed project under the P3 statute and request that the private entity submit an unsolicited P3 detailed proposal. Such a request does not constitute a formal P3 solicitation, and a responsive proposal is subject to section 2-420(c).”
2. Self-Funded Option: The self-funded option via Non-Ad Valorem Assessments is a pay-as-you-go financing approach that utilizes revenues or accumulated cash to fund projects, avoiding debt entirely. This method relies on the implementation of Non-Ad Valorem Assessments at rates that allow the Solid Waste District to save funding to complete the project in a timely manner. While it reduces financial risk by avoiding borrowing costs, it does require significant use of City funds.
3. Certificates of Participation (COPs): As part of staff’s review of funding alternatives and with the assistance of PFM, COPs was evaluated. COPs are a form of lease-financing that allows the City to fund facility development without issuing traditional voter-approved bonds. The City enters a Lease-Purchase Agreement with a financing entity, and investors buy shares of the lease payment. The City makes annual appropriation and gains ownership of the facility once the lease is fully paid. This option utilizes outside financing which would free up District funds, however it results in a higher project cost due to interest and, since this is a new process for the City, may take longer to establish than the pay-as-you-go option.
Strategic Plan Pillar
Infrastructure and Facilities
Financial Impact
Not applicable.
Procurement
Not applicable.
Attachments:
1. Presentation
2. FDS P3 Proposal
3. Alternative Funding Options Memo
Prepared by: Garrett Woods, CPWP-M, Senior Business Manager
Department Director: Chuck Speake, Public Works Director