Interoffice Memorandum
DATE: February 27, 2025
TO: Mayor Jerry L. Demings and County Commissioners
THROUGH: N/A
FROM: Ed Torres, M.S., P.E., LEED AP, Director, Utilities
CONTACT: Tim Armstrong, Deputy Director, Fiscal and Operational Support Division
PHONE: 407-254-9745
DIVISION: Fiscal and Operational Support Division
ACTION REQUESTED:
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Pluris Wedgefield Update. (Fiscal and Operational Support Division)
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PROJECT: N/A
PURPOSE: The Wedgefield subdivision in east Orange County, developed in 1962, is served by two distinct water systems. Some areas rely on well and septic systems, while approximately 1,800 properties receive centralized water and sewer services. Since inception, these centralized systems have been privately owned and operated. Currently, Pluris Wedgefield, LLC (Pluris) manages these utility systems under the regulatory oversight of the Florida Public Service Commission (PSC) and the Florida Department of Environmental Protection.
Over time, residents have raised concerns about water quality, pricing, and customer service. In late 2016, the Wedgefield homeowners’ associations requested that Orange County consider acquiring the Pluris water and wastewater systems. In response, the Board authorized the Utilities Department to competitively solicit professional consultant services to conduct an opinion of value. The first three phases of this effort have been completed, including an appraisal by Hartman Consultants, LLC and a facilities assessment by Utilities staff. These findings were presented to the Board during a work session on July 30, 2024.
On October 8, 2024, a subsequent presentation to the Board reviewed the progress since the July session and introduced a potential acquisition option via the Florida Governmental Utility Authority (FGUA). After a Board vote to authorize FGUA to engage in their due diligence for a potential acquisition failed, the Board directed staff to enter negotiations with Pluris for the purchase of their system. Starting on October 18, 2024, staff requested meetings on four separate occasions with Pluris to initiate these negotiations; however, Pluris insisted on receiving a formal offer from the County before agreeing to a meeting.
Board feedback and direction during the July 20 and October 8, 2024, meetings were clear and consistent outlining that no funding scenario in which Orange County is a partner would occur without fair contribution by the affected property owners. There was no Board support for subsidizing acquisition through rate increases to current Orange County Utilities customers or through the general fund.
On November 27, 2024, staff extended a good faith offer of $8 million based on recent book values and depreciation reported by Pluris to the PSC. This offer was deemed more than fair considering the $58 million in capital investment required to upgrade the system to County standards based on the prior facilities assessment. Pluris responded with a counteroffer of $20.5 million on February 4, 2025.
On February 11, 2025, the County increased its offer to $10 million, the maximum purchase price previously identified by the Wedgefield community. Pluris countered on February 13, 2025, with a proposal of $19.5 million. Before formally updating the Board on these negotiations, staff will engage with the Wedgefield community to review the negotiation results and confirm the community’s final financial commitment prior to MSBU balloting overseen by the Comptroller. Once these community discussions are complete, staff will return to the Board to present the findings and seek further Board direction. This item is for informational purposes only. Board action is not required at this time.
BUDGET: N/A