☐ Consent Agenda ☐Quasi-Judicial Public Hearing
☒ Regular Business 3:00 pm
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DEPARTMENT: Utilities
SUBMITTED BY: Jeannine Tatum
PRESENTED BY: Greg Harris
TITLE & DESCRIPTION:
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Approval of Funding Agreement with CSWR-Florida Utility Operating Company, LLC to cover the County’s costs related to a potential bulk potable water program for the County to serve certain real property in Charlotte County with bulk potable water.
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REQUESTED MOTION:
Motion to approve the Funding Agreement with CSWR
SUMMARY:
CSWR-Florida Utility Operating Company, LLC (“CSWR”) has requested that the County provide bulk potable water to CSWR’s service area in Charlotte County. The County, in turn, has requested that CSWR cover the County’s costs to analyze and potentially implement the request for service. The proposed agreement provides that CSWR will deposit a sum of $60,000 with the County as a deposit, which the County can draw upon to cover the County’s legal and professional service costs associated with preparing the requisite legal documents, rate studies, and technical reviews.
BACKGROUND:
CSWR is water utility company regulated by the Florida Public Service Commission (PSC), and has a service area within Charlotte County that is adjacent to the County. CSWR’s service area is depicted in Exhibit A.
The County receives its water supply from the Peace River/Manasota Regional Water Supply Authority (“PRMRWSA”), a regional water supply authority created and existing pursuant to Florida Statutes, pursuant to a Master Water Supply Contract between PRMRWSA and the County, which water is treated and then serviced throughout the County through the County’s utility department and its water treatment plant and infrastructure.
PulteGroup, Inc. (“Pulte”), is a private developer that desire to develop certain real properties in Charlotte County, Florida, as set forth in Exhibit A (the “Property”), which Property is proposed to be developed with up to 4,000 residential dwelling units and 2,000,000 ft.2 of non-residential improvements in a development called MeadowVue (the “Development Project”).
The Development Project is within Charlotte County’s jurisdictional limits, and further within CSWR’s service area for water utility services. In addition to the Development Project, CSWR anticipates additional development it would serve through a future bulk water agreement with the County. The estimated development timeline is attached as Exhibit B.
The County has the current capacity to provide an initial amount of .816 million gallons per day to CSWR, and if ultimately approved by a separate bulk water agreement, the County would need to increase capacity in the future, at the cost of CSWR, to service continued development up to 2 million gallons per day.
Of note, while Charlotte County is also a member of PRMRWSA and receives its water supply through said Authority, Charlotte County does not have adequate capacity to supply water to the Development Project or CSWR’s request. Therefore, Pulte and CSWR have requested that the County provide wholesale potable water to CSWR to service the property.
Currently, the County does not have a bulk water rate established, nor does it currently possess the infrastructure necessary to provide wholesale potable water services to the Property. Therefore, the County and CSWR contemplate entering into a certain “Bulk Water Purchase Agreement,” which, if approved, the County would be required to provide wholesale potable water to the area of Charlotte County where the Property is located (the “Bulk Water Agreement”).
In order for the County to provide wholesale potable water services (the “County Services”) to the property, the County and CSWR propose to provide a financially feasible plan for the provision of the County Services to the Property (the “Utility Plan”), and the COUNTY and its contracted management, operations, and legal team have the expertise required to work with CSWR in developing and managing, the Utility Plan for the provision of said County Services.
Through the proposed Funding Agreement, CSWR has agreed to provide the necessary funding to the County to effectuate the development and management of the Utility Plan. Specifically, the proposed agreement provides that CSWR will deposit a sum of $60,000 with the County as a deposit, which the County can draw upon to cover the County’s legal and professional service costs associated with preparing the requisite legal documents, rate studies, and technical reviews.
FUNDS:
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