SUBJECT
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Public Hearing to consider the sale of the Waverly Utility System (water and wastewater) to the City of Lake Wales ($5,300,000.00 one-time revenue)
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DESCRIPTION
The County owns and operates a potable water supply, treatment, transmission, and distribution system, and a wastewater collection, transmission, treatment, and disposal system (collectively, the “Waverly Utility System”) located within the Waverly area of unincorporated Polk County within the East Regional Utility Service Area. The Waverly area is contiguous with the City of Lake Wales corporate limits. As of 2022 the Waverly Utility System served 562 residential potable water connections, 26 commercial water connections, 242 residential wastewater connection and 3 commercial wastewater connections.
The Waverly Utility System is essentially an enclave within the Lake Wales utility service area and is remote from other Polk County Utilities infrastructure. The City and the County utilities staffs agree that the City’s acquisition of system would be a more efficient use of those assets. In September 2024, the County commissioned and obtained a system valuation report from Raftelis Financial Consultants, Inc. After considering the report the County and City utility staffs began negotiating a purchase and sale agreement for the Waverly Utility System. The resulting proposed agreement (the “Waverly Utility Sales Agreement”) provides for the sale and transfer of all Waverly Utility System assets to the City of Lake Wales for the sum of five million three hundred thousand dollars ($5,300,000.00) with a closing to occur on or before March 13, 2026.
A sale of the Waverly Utility System requires the Board of County Commissioners to hold a public hearing on the proposed sale, then make a determination that the sale is in the public interest considering at a minimum the statutory factors reviewed on the memorandum attached to and made part of the attached proposed resolution (the “Resolution”) which states the Board’s findings and determinations regarding the sale, approves the sale, and delegates authority to the County Manager and the Real Estate Services Director to execute documents on behalf of the County which are necessary to close the transaction in accordance with the Waverly Utility Sales Agreement.
RECOMMENDATION
Following the public hearing find that the proposed Waverly Utility System sale is in the public interest, adopt the proposed Resolution, and approve the proposed Waverly Utility Sales Agreement
FISCAL IMPACT
Funds received will be deposited in the Utilities Operating Fund.
CONTACT INFORMATION
Tamara Richardson
Utilities Division Director
863-298-4246
Tom Norsworthy
Deputy County Attorney
863-534-6730