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 Funding Options for the New Police Department Headquarters Project.
Recommended Action
Discussion and possible direction regarding funding options for the New Police Department Headquarters Project.
Background Information
Ordinance 2025-03 was approved on second reading on February 11, 2025, which allowed the following referendum question to be placed on the May 13, 2025, North Port Special Election:
“To finance a new Police Department headquarters facility, shall the City of North Port be authorized to issue bonds in one or more series in a total aggregate principal amount not to exceed $115,000,000, maturing no later than 30 years from issuance, bearing interest at no more than the maximum lawful rate and payable from ad valorem property taxes levied in amounts sufficient to pay debt service on such bonds?”
The referendum was not successful; therefore, the City will be unable to issue bonds to finance the new Police Department Headquarters Project. If the bonds were approved by voters, the average North Port homeowner with an assessed property value of $246,400 would have seen an initial property tax increase of approximately $121.38 - about $10 a month or 33 cents a day. However, funding the development in a pay as you go model will likely result in higher impacts in order to accumulate the needed funds in a timely manner.
As discussed in previous City Commission meetings, outlined below, the current headquarters building is no longer meeting the needs of the North Port Police Department. Staff continues to seek alternative options for funding this project. In addition to evaluation of mileage rates to supply needed revenues, funding options for consideration are outlined in the attached memo and include:
• Certificates of Participation (COPS)
• Public Private Partnerships (P3)
• State Revolving Fund (SRF) Loans
• Bank Loans and Lines of Credit
• Increasing Fund Balance Reserves
• Pay-As-You-Go (Pay-Go) Financing
Summary of Previous Discussions Regarding the Need for New Police Department Headquarters
Ø January 6, 2025, during the City Commission Workshop, staff provided a presentation outlining the history of the North Port Police Department, current facility needs and population growth projections for the City Commission’s consideration for development of a referendum question.
Ø April 1, 2024, during the City Commission Special Meeting, the Commission reviewed funding options for the headquarters and provided direction to fund the design of the headquarters to 100% plans.
Ø March 7, 2024, during the City Commission Special Meeting, the Commission approved the following motions related to the New Police Department Headquarters Project:
Ø Motion: To direct the City Manager to proceed with the $122 million growth to 2065 plan.
Ø Motion: To direct the City Manager to work with the engineer firm for site, drainage, and construction plans for the headquarters at 100%.
Ø Motion: To direct the City Manager to continue preparing a funding plan for additional services to complete the site, drainage, and construction plan for the Police Department Headquarters at a cost not-to-exceed $4 million dollars.
Ø February 26, 2024, during the City Commission Workshop, the Commission discussed potential referendum language to amend Section 1.02(b) of the Charter of the City of North Port, Florida, Related to the City’s authority to issue general obligation and revenue bonds. At the conclusion of their discussion, the City Commission provided the following consensuses related to the new Police Department Headquarters Project:
Ø Consensus: To pursue the $122 million model for the North Police Department Station, subject to change pending future information being provided.
Ø Consensus: To direct staff to investigate permissive referendums and send to Charter Review Advisory Board and have legal review to be provided back to Commission.
Ø July 25, 2023, during the City Commission Regular Meeting, the Commission approved Resolution No. 2023-R-49, authorizing the purchase of land on Toledo Blade Boulevard for the new Police Department Headquarters. The purchase of the property was completed on August 2, 2023.
Ø March 2023 - June 2023: Pursuant to the Commission’s direction, staff proceeded to identify property and negotiated with the property owner for a purchase price.
Ø March 2, 2023, during the City Commission Special Meeting, the Commission discussed the development and construction of the Police Station Headquarters and the Emergency Operations Center (EOC) was presented to the Commission. At the conclusion of their discussion, the City Commission provided the following consensuses related to the Police Department Headquarters Project:
Ø Motion: Direct the City Manager to proceed with the facility needs of the North Port Police Station to expand at a new location to be determined.
Ø Motion: Direct the City Manager to authorize the identification and debate with identified property owner for a purchase price to be brought back to Commission.
Ø Motion: Authorize staff to work with the engineering firm Schenkel & Schultz to prepare a 30% site, drainage and construction plan including the EOC, contingent upon City Commission approval of the purchases of the property.
Ø Motion: Direct the City Manager to bring back all financing options for construction of the North Port Police Station and EOC.
Ø April 12, 2022, during the City Commission Regular Meeting, the Commission approved Agreement No. 2021-17 Professional Architectural and Engineering Services for City of North Port Police Department Facilities between the City of North Port and Schenkel & Shultz, Inc. in the amount of $235,410.00. The scope of services from Schenkel & Shultz included the architectural/engineering and construction administration services for the renovation of the existing Police Department Facility and design of the new EOC, 911, Evidence Facility. A new Police Department Facility and existing station to include the renovations/additions requirements will be determined throughout the design process based on available space and construction costs. It is the intent of the design team to work with the City in developing a needs assessment and staffing analysis for the entire agency first. Conceptual floor plan blocking diagrams and site blocking diagrams will be developed for new project site and existing building based on information developed in the analysis.
Ø September 20, 2021, Request for Proposal 2021-17 was issued requesting proposals from experienced and qualified firms for professional architectural design and engineering services for City of North Port Police Department Facilities. Three proposals were received October 21, 2021. Selection Committee meetings for telephone discussions with the firms and evaluation and ranking of proposals were held November 8, 2021. Of the three firms evaluated and ranked, Schenkel & Shultz, Inc was found to be the most qualified firm and it was recommended by the Selection Committee and Purchasing that the City move forward with negotiations with the selected firm. Negotiations were successfully concluded, and staff is now recommending the Award of Agreement No. 2021-17 to Schenkel and Shultz, Inc. as the most qualified proposer meeting the overall specifications of the City of North Port.
Ø June 22, 2021, during the City Commission Regular Meeting, the Commission reviewed CIP PD21PE to add costs of renovations and additions to the current Police Department Headquarters. At the conclusion of the discussion, the Commission approved the expansion of the scope for CIP PD21PE as read into the record by the City Manager.
Ø May 25, 2021, during the City Commission Regular Meeting, the Commission approved Ordinance No.2021-28. This Ordinance included CIP PD21PE to pursue other options to address both current and future space and staff needs of the Police Department and EOC.
Strategic Plan
Good Governance
Infrastructure & Facilities Integrity
Economic Development & Growth Management
Financial Impact
To be determined.
Procurement
Not applicable.
Attachments:
1. Ordinance No. 2025-03
2. Alternative Funding Options Memo
3. January 6, 2025 City Commission Workshop Minutes
4. April 1, 2024 City Commission Special Meeting Minutes
5. February 26, 2024 City Commission Workshop Minutes
6. July 25, 2023 City Commission Regular Meeting Minutes
7. March 2, 2023 City Commission Special Meeting Minutes
8. April 12, 2022 City Commission Regular Meeting Minutes
9. June 22, 2021 City Commission Regular Meeting Minutes
10. May 25, 2021 City Commission Regular Meeting Minutes
Prepared by: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
Department Director: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager