SUBJECT
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Approve the Purchase Agreement with Collany LLC for the Acquisition of PRWC Southeast Wellfield Site 14 and Negotiated Settlement for Parcel 11000 Permanent and Temporary Construction Easements for the Southeast Wellfield Project (Action)
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DESCRIPTION
Following negotiations between the PRWC and the Collany LLC, the PRWC reached two separate agreements for the purchase of approximately 1.11 acres of land for the Southeast Wellfield Well Site 14 (fee simple) and 0.91 acres of transmission main (easements). The location map is attached as Exhibit A, the Purchase Agreement for Well Site 14 is attached as Exhibit B, and the Easement Agreement is attached as Exhibit C.
Pursuant to the negotiated cost, Collany LLC will receive $226,150 (no expert or attorney fees) for the well site and transmission main easements. The PRWC appraisal amount for the property and easements was a total of $130,850. Collany LLC initially countered at $325,000. After a series of cost exchanges, an agreement was reached at $226,150, which is $95,300 above the appraised values and $98,850 below the initial offer by the landowner. The increase in the amount of compensation provided to Collany LLC above the appraised value is considered appropriate given the additional items considered including the removal of mature trees and fencing along the transmission main easement. Additionally, two other factors must be considered in this acquisition:
1) The PRWC has resolved some of the permitting issues that restricted locations available to us for well sites in this area. Even so, Collany LLC is one of the few owners in this area that are willing to provide property for a well site to the PRWC;
2) The PRWC currently has a contractor (Florida Design Drilling) constructing production wells in this area and the timing is such that the well driller will need a new site to begin work on in December 2025. Acquisition of this property keeps the PRWC on schedule.
The PRWC will give permission to Collany LLC for driveway access over the transmission main upon review and approval of proposed plans. The Purchase Agreement has numerous benefits to the PRWC as outlined below:
1) The PRWC is able to acquire a raw water well site from a willing seller within the project schedule constraints and utilize Florida Design Drilling for well construction;
2) The eminent domain process and a potential jury trial will be avoided, which would have exposed the PRWC to an additional estimated $200,000-$250,000 in costs for both the wellsite and easements;
The close proximity of Well Site 14 to the Water Production Facility on the east side of Walk-in-Water Road provides cost savings to the PRWC.
RECOMMENDATION
Approve the Purchase Agreement with Collany, LLC for the acquisition of PRWC Southeast Wellfield Well Site 14 and permanent and temporary easements on PRWC parcel 11000.
FISCAL IMPACT
The Purchase Agreement provides that the PRWC will pay $226,150 (no attorney and expert fees) for PRWC well site 9 and PRWC Parcel 11000 PE and TCE. These costs are anticipated to be reimbursed through a Heartland Headwaters Protection and Sustainability Act grant. A total of $21,229,000 is budgeted for Southeast Wellfield Transmission Main land costs.
CONTACT INFORMATION
Eric DeHaven