Approve Interlocal Agreement with FPUA and St. Lucie County creating a Fra Mar/Wagner MSBU to fund the cost of providing potable water to the neighborhood in unincorporated St. Lucie County.

Property owners along Fra Mar Place and Wagner Place requested potable water for their neighborhood through the county MSBU process. A Municipal Services Benefit Unit (MSBU) is a financing method wherein St. Lucie County establishes a special district to allow a group of citizens to fund a desired improvement, such as providing City water, by majority consensus (51% approval) of the property owners contained in the assessment area. This process allows the property owner to finance the amount of the assessment over a period of time, generally 10 to 15 years depending on the project cost and type of improvements. The assessment appears annually on the property tax bill as a non-ad valorem tax. The Fra Mar/Wagner MSBU includes 36 parcels, 31 of which are presently developed and predominantly duplexes along Fra Mar and Wagner Place between Oleander Avenue and North 7th Street. The total cost of the Fra Mar/Wagner MSBU is estimated to be $229,211.53. FPUA's contribution toward this project includes $57,899.45 (the total Capital Improvement Charge amount) as well as design, permitting, inspection and certification of the completed water project, estimated to be $16,500. The MSBU is a benefit to both the customers receiving improved service, and a benefit to the City and FPUA by facilitating the addition of 71 potential individual new water customers, at minimal expense.

Approve agreement.

Don't approve or modify.

Clay Lindstrom, Director of Utilities, FPUA

Linda W. Cox, City Clerk