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Home My WebLink About18-041RESOLUTION NO. 18-041 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF ST. LUCIE COUNTY, FLORIDA, PURSUANT TO CHAPTER 171, PART II, FLORIDA STATUTES, THE INTERLOCAL SERVICE BOUNDARY AGREEMENT ACT, RESPONDING TO AN INITIATING RESOLUTION OF THE CITY OF FORT PIERCE AND SETTING OUT IN ACCORDANCE WITH SECTION 171.203(5), FLORIDA STATUTES, CERTAIN ISSUES FOR NEGOTIATION AND DISCUSSION WHEREAS, Part II, Chapter 171, Florida Statutes, entitled the "Interlocal Service Boundary Agreement Act" ("Act") provides an alternative to Part I of said chapter for local governments regarding the annexation of unincorporated territory into municipalities and the provisions of services related to such annexed territory; and WHEREAS, the St. Lucie County Board of County Commissioners (`Board") has been provided notice of the adoption by the City of Fort Pierce, Florida, City Commission ("FP") of Resolution No. 18-1102, adopting and initiating resolution pursuant to the Act, and inviting the Board to commence the negotiations process under the Act to enter into an Interlocal service boundary agreement to address issues concerning planning, annexation and service delivery for the area identified in the resolution; and WHEREAS, FP and the County have been jointly undertaking a review of the revitalization of Downtown Fort Pierce and central and northern St. Lucie County. An important component part of that review has been exploration of the relocation of the Ft. Pierce Utility Authority ("FPUA") island sewer treatment facility to improve resiliency, and to promote the redevelopment of the island property together with the waterfront areas of FP; and WHEREAS, concurrently with this review, the FPUA and the St. Lucie County Water and Sewer Utility District ("SLC Utility") have been jointly undertaking a review of the opportunities to create a regional utility authority for central/northern St. Lucie County to promote the regional development of water, sewer and reclaimed water supplies and treatment facilities, and to better manage and provide cost effective public infrastructure growth in central/northern St. Lucie County, with the ultimate goal of providing the most cost effective and efficient utility service for the public at the lowest possible cost; and WHEREAS, the County suggests combining the efforts outlined above to take best advantage for the public of the synergies of creating a central/northern St. Lucie County Interlocal utility authority to accomplish these multiple goals in the public interest; and WHEREAS, the County recognizes the importance to the economic health of the City and public health and welfare of residents in the unincorporated County areas abutting the municipal boundaries of FP for the thoughtful implementation of FP's long term municipal annexation program, and accordingly the County suggests that parties explore the implementation of a regional authority that would preserve and protect the FPUA annexation agreement program; and WHEREAS, the Board also desires to discuss with the City the issues of the City's overall annexation plans, the potential for community involvement and input regarding future annexations and responsibility for roads and drainage within future annexation areas; and WHEREAS, it is the intent of the Board to respond to FP's initiating resolution to provide the Board with the opportunity to participate in the negotiation process under the Act. NOW, THEREFORE, BE 1T RESOLVED by the Board of County Commissioners of St. Lucie County, Florida: A. The Board hereby adopts this responding resolution pursuant to the Act, to commence discussions and negotiations pursuant to the Act so as to enter into an Interlocal Service Boundary Agreement addressing the area and the issues set forth in FP Resolution No. 18-1102, as well as the issues identified in Exhibits A and B attached to this Resolution. B. The Board directs the County Administrator or his designee to provide a copy of this Resolution by United States Certified Mail to the City Manager of the City of Fort Pierce, as the Chief Administrative Officer. C. This resolution shall be effective on the date of its adoption. After motion and second the vote on this resolution was as follows: Commissioner Frannie Hutchinson, Chair AYE Commissioner Linda Bartz, Vice Chair AYE Commissioner Chris Dzadovsky AYE Commissioner Anthony Bonna AYE Commissioner Cathy Townsend AYE PASSED AND DULY ADOPTED this 20th day of March 2018. ATTEST: BOARD OF CO f TY COM ST. L IE COUNTY, FLOR Y: Chair APPROVED�AS TO FORM CORRECTNESS3 A _ _ /1 A BY: County Atto ERS EXHIBIT "A" The Board desires to discuss with the City the following issues: A. The City's overall annexation plans. B. The potential for community input and involvement in the City's future annexation plans. C. Responsibility for roads and drainage within future annexation areas. EXHIBIT `B" Creation of Regional Water and Sewer Treatment Authority for North/Central SLC A. Fort Pierce/FPUA and SLCWSD create a section 163.01, F.S. interlocal entity to provide North/Central County regional water and reclaimed water supply and treatment and sewer treatment and disposal facilities. B. Fort Pierce/FPUA and SLC appoint governing Board of Regional Authority. C. Regional Authority authorized to provide water and reclaimed water supply and treatment, and sewer treatment and disposal utility service to FPUA and SLC Utility for retail utility service. D. Regional Authority directed to acquire and operate the regional water and reclaimed water supply and treatment and sewer treatment and disposal facilities, but not provide retail service, which remains under control of FPUA and SLC Utility within their respective service territories. F. Regional Authority authorized to issue debt to acquire existing FPUA and SLC utility water and reclaimed water supply and treatment and sewer treatment and disposal facilities in amount sufficient to defease the FPUA and SLC Utility outstanding water and sewer system debt, and sufficient to fund relocation of FPUA island sewer treatment facility to SLC mainland utility site, to fund redirection of sewer flow to new sewer treatment facility, and to fund other regional infrastructure requirements. F. Regional Authority board passes through actual cost for regional utility services to FPUA and SLC Utility; FPUA and SLC Utility continue to collect retail rates from customers and retain net revenues, which allows FPUA to continue to fund annual transfers to City of Fort Pierce. G. Regional Authority authorized to contract with FPUA and SLC Utility to operate and maintain retail utility facilities on cost pass-through basis. 11. FPUA and St. Lucie County Utilities retain retail customers/water distribution and wastewater collection systems A. FPUA retains control over existing and future service area customer relationship. 1. FPUA retains annexation agreement requirement for new customers within FPUA service territory. 2. FPUA sets rates and charges for retail customers. 3. FPUA sets service policies for current/future customers. B. SLC Utilities retains control over existing and future service area customer relationship. 1. SLC sets rates and charges for retail customers. 2. SLC sets service policies for current/future customers. III. Transfer of Treatment Systems A. FPUA transfers utility facilities to Regional Authority (water supply, water treatment plant, water storage and plumbing facilities, major water transmission mains, island sewer plant, major force mains, major pump stations, effluent and Biosolids disposal facilities). B. SLCWSD transfers utility facilities to Regional Authority (water supply, water treatment plants, water storage and pumping facilities, major water transmission mains, sewer plants, major force mains, major pump stations, effluent and Biosolids disposal facilities). IV. Redevelopment of Island Sewer Plant Site A. Upon completion of a new mainland sewer treatment facility, the City of Fort Pierce and SLC jointly collaborate on redevelopment of the island sewer plant site. V. Debt Issuance by Authority A. As the Regional Authority is independent of either FPUA or SLC Utility, the Regional Authority can effectively restructure and extend existing utility debt to achieve debt service savings sufficient to fund the acquisition/capital infrastructure program without the requirement of increasing retail customer rates to fund the acquisition and initial capital program. VI. Economies of Scale A. Regional Authority can achieve operations economies of scale, reduce duplicate treatment facility construction; reduce operating expenses through modernization of facilities and technology upgrades, and optimize use of available capacities in current facilities. Regional Authority can provide funding mechanisms forequitable 5 year right -sizing transition plan for existing employees (through normal employee attrition and out -bonding incentive packages. VII. Future opportunity to include PSL Utility in Regional Authority