Placement: Consent Agenda
Action Requested: Motion / Vote
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Authorize the City Manager to Execute a Mitigation Credit Supply Agreement with Bluefield Ranch Environmental Mitigation Bank, LLC.
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Submitted By: Alaina Knofla, Acting Procurement Manager.
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Alaina Knofla, Acting Procurement Manager.
2. Parties: City of Port St. Lucie & Bluefield Ranch Environmental Mitigation Bank, LLC.
3. Purpose: To purchase environmental mitigation credits to address the wetlands at the Westport Wastewater Treatment Facility as part of the design to add the necessary reject water tanks.
4. New/Renewal/Modified: New.
5. Duration: One time purchase.
6. Benefits to Port St. Lucie: The reject tanks are an essential component of the Advanced Wastewater Treatment process planned at the Westport Wastewater Treatment Facility. Due to spatial constraints, the only viable location for the two 175-foot diameter storage tanks is within the current wetland area. Regulatory agencies mandate that the Utility Systems Department (“USD”) purchase mitigation credits to compensate for the land used, thereby preserving natural wetlands.
7. Cost to Port St. Lucie (Annual and Potential): Estimated expenditures are $93,500.00 for 0.34 mitigation credits.
Presentation Information: N/A.
Staff Recommendation: Move that the Council Authorize the City Manager to Execute a Mitigation Credit Supply Agreement with Bluefield Ranch Environmental Mitigation Bank, LLC. as the sole source provider.
Alternate Recommendations:
1. Move that the Council amend the recommendation and Authorize the City Manager to Execute a Mitigation Credit Supply Agreement with Bluefield Ranch Environmental Mitigation Bank, LLC.
2. Move that the Council reject the recommendation and provide staff direction.
Background: The Westport Wastewater Treatment Facility was previously in the process of an expansion to treat approximately 12 million gallons a day of wastewater. During phase one of that expansion, regulatory changes occurred through the Basin Management Action Plan (BMAP) that required the treated wastewater effluent to a higher standard. The USD evaluated the regulatory changes and assessed through a cost/benefit analysis the best course of action. It was decided rather than expanding, the treatment facility would under construction improvements to not only meet the current BMAP requirements, but to design and construct the infrastructure to meet Advanced Wastewater Treatment standards. Upon completion, these improvements will reduce the amount of nitrogen and phosphorus that exists in the WWTF effluent and reclaimed water that could make its way to the St. Lucie River.
Issues/Analysis: There is the possibility that the mitigation requirements may change due to factors not known at this time. If the mitigation requirement exceeds the number of mitigation credits purchased, the City may notify Bluefield of the increase and procure additional credits at the per credit price. Staff is asking Council to approve the agreement, including the possibility of expenditures beyond the expected $93,500.00.
Financial Information: The Utility Systems Department is purchasing 0.34 State Freshwater Forested Mitigation Credits at the per credit price of $275,000.00. Since the unit of credits being purchased is less than one (1), the total purchase price equates to $93,500.00.
Special Consideration: Bluefield Ranch Mitigation Bank is the sole provider of wetland mitigation banking services in the Port St. Lucie area. Mitigation banks are authorized with specific Mitigation Service Areas (MSA) from which clients can acquire credits. Currently, per the Florida Department of Environmental Protection (FDEP) Mitigation Banking Team, Bluefield Ranch Mitigation Bank is the exclusive provider of freshwater wetland credits in this region.
Location of Project: Westport Wastewater Treatment Facility.
Attachments:
1. Mitigation Agreement.
2. Sole Source Justification.
3. Recommendation of Award Memo.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 25245-02.
Legal Sufficiency Review:
Reviewed by Elizabeth L. Hertz, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.