Title
MOTION TO ADOPT PROPOSED RESOLUTION NO. 2025-R-46.
PROPOSED RESOLUTION NO. 2025-R-46 IS A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF PEMBROKE PINES, FLORIDA; APPROVING THE POTABLE WATER AND WASTEWATER SERVICES AGREEMENT WITH THE TOWN OF SOUTHWEST RANCHES; AUTHORIZING THE CITY MANAGER TO EXECUTE THE POTABLE WATER AND WASTEWATER SERVICES AGREEMENT WITH THE TOWN OF SOUTHWEST RANCHES; APPROVING PENDING TRANSFER OF THE POTABLE WATER AND WASTEWATER SERVICES AGREEMENT; PROVIDING FOR RECORDATION; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE.
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. The Town of Southwest Ranches has requested approval of a Potable Water and Wastewater Service Agreement to a property more particularly identified by the following folio Nos: 5139-02-04-0490; 5139-02-04-0500; and 5139-02-04-0510, comprising approximately 24.36 Acres. The site plan to be constructed is estimated to have approximately 123 equivalent residential connections of demand for water and wastewater service, totaling a maximum amount not to exceed 37,000 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 the applicant. 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. Providing the Town of Southwest Ranches applies for the necessary engineering permit to extend and connect water and sewer service to the City of Pembroke Pines' nearest infrastructure, Southwest Ranches can maintain adequate on-site and off-site infrastructure to properly convey potable water to and discharge wastewater from the proposed site.
4. The City of Pembroke Pines will charge the Town of Southwest Ranches 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 34,812 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 34,812 gallons per day ÷ 300 gallons per day (1 ERC) = 116.04 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: 116.04 ERC x $3,593.65 = $417,007.14
Sewer Connection: 116.04 ERC x $4,287.18 = $497,484.36
For an estimated revenue of $914,491.50 for the initial first year connection.
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.
5. The City Commission's approval of the Agreement is contingent upon approval of the same by the Southwest Ranches Town Council.
6. The Town has disclosed to the City that the Property is presently under contract with FRP SWR LLC, a Delaware Limited Liability Company (the "Contract Purchaser"), and that the Town intends to assign the Agreement to the Contract Purchaser upon recordation of a deed to the Contract Purchaser.
7. In consideration of the anticipated end of due diligence period for the Contract Purchaser of the property, the accompanying Resolution provides for the City Commission's approval of the Town's assignment of all rights, duties, obligations, and terms of the Agreement to the Contract Purchaser upon recordation of a deed transferring ownership of the Property from the Town to the Contract Purchaser.
8. Staff recommends commission approval of the Potable Water and Wastewater Service Agreement with the Town of Southwest Ranches and the proposed assignment of the Agreement to the Contract Purchaser.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: Developer must build infrastructure extension and connection - no cost to City.
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:
|
|
Current FY |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Revenues |
$914,491.50 |
$9,142.92 |
$9,417.21 |
$9,699.72 |
$9,990.72 |
|
Expenditures |
$410.09 |
$422.39 |
$435.06 |
$448.11 |
$461.55 |
|
Net Revenues |
$914,081.41 |
$8,720.53 |
$8,982.15 |
$9,251.61 |
$9,529.17 |
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