TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion and Possible Action Related to Termination of the Warm Mineral Springs Site Management Agreement, as Amended, Between the City of North Port and National and State Park Concessions, Warm Mineral Springs, Inc.
Recommended Action
Discussion and possible action related to the termination of the Warm Mineral Springs Site Management Agreement, as amended, between the City of North Port and National and State Park Concessions, Warm Mineral Springs, Inc.
Background Information
The City of North Port and National and State Park Concessions, Warm Mineral Springs Inc, (NSPC) entered into a Site Management Agreement on September 26, 2014, for the management and operation of Warm Mineral Springs Park (WMSP). The Agreement was amended on May 26, 2015, with the term in effect through September 30, 2025.
As documented in section 6b of the Agreement, the Springs may be closed for severe weather, health, or structural related hazards in which human health or safety becomes a concern. In accordance with the City’s pre-storm safety preparations, WMSP was closed to the public on September 27, 2022, as a protective measure in advance of Hurricane Ian and has remained closed due to the post-storm hazards that threaten human health and safety. Pursuant to Section 6b of the Agreement, the City is not required to pay the management company while WMSP is closed for this reason.
As noted above and as a result of post-storm damage assessments and public safety concerns identified in and around the buildings and grounds, WMSP remains closed. Post-storm, the power has not yet been completely restored to WMSP. Following is an overview of the initial assessments conducted in coordination with the City’s Risk Management team, and with the assistance of a contracted Structural Engineer and Electrical Contractor:
Ø Admissions Building
While the building was deemed structurally sound, assessments documented no less than 2 feet of water intrusion into the building. The majority of the electrical outlets are within this 2-foot elevation and will require testing for safety once power is restored to the site. In addition, due to concerns related to poor air quality, inspection and testing was ordered with results currently pending.
Ø Spa Building
The spa building sustained significant roof and structural damage, along with water intrusion. The Structural Engineer has advised against further entry. An official report with these findings is forthcoming.
Ø Cyclorama
The cyclorama sustained significant roof damage and water intrusion. Staff is working in coordination with Sarasota County Historical Resources to develop a plan to preserve the murals and statues contained within this building.
Ø Grounds & Springs
A considerable amount of debris is strewn throughout the grounds with unknown hazards in the Springs. A licensed dive team will need to be contracted to investigate potential underwater hazards prior to allowing any public access to the water. Water quality testing is also necessary due to large amounts of stormwater runoff and is forthcoming. Furthermore, on October 18, 2022, the Environmental Protection Agency (EPA) was on site to conduct an inspection of the well pump and determined the Springs must be closed due a public safety issue and potential water quality concerns. Documentation from the EPA is forthcoming. Staff is in the process of securing the site with no trespassing signs and temporary fencing to support the closure.
Ø Electrical Service
Although Florida Power & Light (FPL) energized the transformer onsite at WMSP, there is currently no power to the site as the overhead lines to the main electrical box were damaged during the storm. The City could replace the overhead feed and ask FPL to energize those connections. However, the Electrical Contractor has advised against this course of action due to the following reason:
ü The main electrical system, the majority of which is still original to the (1959) building, has components which were within the area submerged by flood water. If energized, the system would likely not function as intended and could be hazardous. Due to the age and damage to the electrical system, repairs are not feasible. The system will require replacement and will need to be brought up to current edition of the Building Codes.
Ø Public Safety Issue
Based on the assessments conducted by the City’s Risk Management team, and the findings of the Structural Engineer and Electrical Contractor, staff requested that the City’s Building Official inspect all the buildings at the WMSP. The City’s Building Official inspected all the buildings at the WMSP and deemed all the buildings unusable by the public. Accordingly, the Building Official posted a placard of condemnation on the premises and ordered the structures to be closed so as not to be an attractive nuisance.
Ø Operations of Warm Mineral Springs Park Going Forward
Considering the findings and recommendations of the subject matter experts referenced above, along with the findings of the EPA, a temporary closure of WMSP is warranted until appropriate repairs and accommodations can be made. Due to the extent of the necessary repairs and replacements, it is estimated that closure may be prolonged. As such, staff recommends that termination of the existing Warm Mineral Springs Site Management Agreement between the City of North Port and National and State Park Concessions, Warm Mineral Springs, Inc. would be in the City’s best interest. During this period of closure, staff will continue to work through the P3 process as directed during the September 12, 2022, City Commission Special Meeting in an effort to develop strategic partnerships and programs to protect North Port’s heritage, historic buildings and unique environmental assets.
Strategic Plan
Quality of Life
Financial Impact
In accordance with section 6(b) of the Warm Mineral Springs Site Management Agreement, a pro-rated reduction in the monthly compensation to National & State Park Concession was implemented effective September 27, 2022, and will remain in effect for the duration that the facility is closed. The current monthly payment to NSPC is $50,582 (which is Consumer Price Index adjusted per the terms of the agreement for a maximum of 2% every two years) which is due on the fifteenth day of each following month of the management term. During Fiscal Year 2022, National and State Park Concessions received full payments for October 2021 through August 2022. The September 2022 payment was adjusted to reflect the 26 days WMSP was able to operate prior to the closure for Hurricane Ian, with no charge for the closed days, and a revised payment of $43,874 was issued for management services. The adopted Fiscal Year 2023 budget of $619,140 in account 125-3036-572-31-05 was approved for continuing management services. In addition, anticipated revenue for Fiscal Year 2023 is projected at $2,000,000.
Procurement
Not applicable.
Attachments:
1. Warm Mineral Springs Site Management Agreement
2. First Amendment Warm Mineral Springs Site Management Agreement
3. Draft City Commission Special Meeting Minutes 09-12-2022
Prepared by: Sandy Pfundheller, Director, Parks & Recreation Department
Department Director: Sandy Pfundheller, Director, Parks & Recreation, Department