Title
MOTION TO ADOPT PROPOSED RESOLUTION NO. 2026-R-03.
PROPOSED RESOLUTION NO. 2026-R-03 IS A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF PEMBROKE PINES, FLORIDA; APPROVING THE POTABLE WATER AND WASTEWATER SERVICES AGREEMENT WITH BERGERON SW RANCHES US 27, LLC, AND BERGERON US 27, LLC; AUTHORIZING THE CITY MANAGER TO EXECUTE THE POTABLE WATER AND WASTEWATER SERVICES AGREEMENT WITH BERGERON SW RANCHES US 27, LLC, AND BERGERON US 27, LLC; PROVIDING FOR RECORDATION; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE.
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. Bergeron SW Ranches US 27, LLC, and Bergeron US 27, LLC, (“Bergeron”) own approximately 55.8 acres of contiguous real property located between Stirling Road to the south, U.S. Highway 27 to the west, and south of the C-11 Canal north of Griffin Road, in the Town of Southwest Ranches (the “Property”). The site plan to be constructed shall be constructed in phases and is estimated to have approximately 79 equivalent residential connections of demand for water and wastewater service, totaling a maximum amount not to exceed 23,628 gallons per day demand.
2. The City of Pembroke Pines owns infrastructure that has adequate capacity to provide this service based on the calculated demands as reported by Bergeron. The City of Pembroke Pines’ infrastructure near this facility, includes Wastewater Lift Station No. 195 (at 20311 Sheridan Street), and a 12-inch and 16-inch diameter water main.
3. Provided Bergeron applies for the necessary engineering permits to extend and connect water and sewer service to the City of Pembroke Pines' nearest infrastructure, Bergeron can maintain adequate on-site and off-site infrastructure to properly convey potable water to, and discharge wastewater from the Property.
4. The City of Pembroke Pines will charge Bergeron a Water Connection Charge and a Sewer Connection Charge to provide Potable Water and Wastewater Services. The charges are calculated for an estimated demand of 23,628 gallons of water per day. Given that the average residential connection consumes 300 gallons of potable water and generates 300 gallons of sewer water per day, the Equivalent Residential Connection (ERC) is equal to 23,628 gallons per day ÷ 300 gallons per day (1 ERC) = 78.76 ERCs.
The cost to provide Potable Water is $3,593.65 per ERC and the cost to provide Sewer Connection is $4,287.18 per ERC. Thereby the charges per service are as follows:
Potable Water: 78.76 ERC x $3,593.65 = $283,035.87
Sewer Connection: 78.76 ERC x $4,287.18 = $337,658.30
For an estimated revenue of $620,694.17 for the initial first year connection.
5. The Town amended its Future Land Use Element through its adoption of Ordinance No. 2024-010 to require that all lands within the Town designated US Highway 27 Business, including the Property, be connected to, or be the subject of, a binding agreement providing for the connection to a municipal water and sewer system prior to the issuance of any permit for the construction of any building or roofed structure.
Moving forward from the initial first year connection charges, the agreement will transition to generating revenue base on monthly service charges for Potable Water and Sewer connections.
6. Staff recommends commission approves the Potable Water and Wastewater Service Agreement with Bergeron SW Ranches US 27, LLC, and Bergeron US 27, LLC.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: Not Applicable
b) Amount budgeted for this item in Account No: Not Applicable
c) Source of funding for difference, if not fully budgeted: Not Applicable
d) 5 year projection of the operational cost of the project:
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|
Current FY |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Revenues |
$620,694.17 |
$12,912.44 |
$13,299.81 |
$13,698.81 |
$14,109.77 |
|
Expenditures |
|
|
|
|
|
|
Net Revenues |
|
|
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Revenues from connection fees will be deposited into the following accounts: 471-000-6021-389803 (Sewer Connection - West) and 471-000-6031-389805 (Water Connection - West).
e) Detail of additional staff requirements: Not Applicable
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable