Newberry Paves Way for Composting Facility

NEWBERRY ‒ The Newberry City Commission on June 24, 2024, unanimously approved a ground lease agreement with LifeSoils LLC for a 15-acre site. This partnership aims to address the disposal of biosolids generated by the City's wastewater treatment facility through an innovative composting process.

The City’s wastewater treatment facility produces two bi-products: treated effluent and biosolids. Currently, the treated effluent is managed by applying it to the ground via a sprinkler system, allowing it to percolate into the soil. Biosolids, on the other hand, are applied to the land to be absorbed by grass vegetation, which is subsequently harvested as hay. However, new regulations concerning biosolids disposal necessitate a change in the City's current practices. These new disposal options are often costly and could significantly increase wastewater rates for residents.

LifeSoils LLC has developed a process for biosolids disposal that transforms them into a high-quality soil amendment and enhancer. The City of Newberry and LifeSoils LLC are now partnering to establish a composting facility in North Central Florida. “Newberry’s available land, and its supply of both yard waste and biosolids, make us a good candidate for this partnership,” said City Manager Mike New.

The ground lease agreement stipulates a 30-year term, with the possibility of renewing the agreement up to three times for additional 10-year periods. Additionally, the agreement requires a 36-month notice for termination.

In the absence of Mayor Jordan Marlowe, Mayor Pro-Tem Mark Clark ran the June 24, 2024 City Commission meeting.

In other City businesses, the Commission also unanimously approved conveyance of 1.03 acres of land from Gary Weseman, Manager, Tanglewood Properties of Gainesville LLC to the City of Newberry. The property is being sold to the City for $10 and will be used for the construction of a water tower.

Lead Service Line Inventory

Engineer Katherine VanZant addressed the Commission to explain that the Department of Environmental Protection is implementing a program that tests water pipes to determine if the pipes are lead. VanZant congratulated the City of Newberry for already starting this evaluation program; something which she said has not been started in many Florida cities.

The results of the assessment will be due in October of this year. With a little more than 500 properties left for the City to assess, “Newberry will easily meet the October deadline,” said VanZant.

Wastewater Plant Funding

The City Commission unanimously approved a change to the originally-approved line of credit for the Wastewater Treatment Plant (WWTP).

The City is nearing the beginning of construction of the plant, which is funded through various grants and loans. The loans and grants are reimbursements, and after the payment is made, the City can request the reimbursement. This will require the City to float the cash between the payment and the reimbursement for 60 - 90 days. As the City does not have sufficient cash on hand, the City proposed entering into a construction line of credit to draw down funds to meet these cash requirements.

Staff engaged the City’s financial advisor (PFM) to prepare a request for proposals to provide the City with interim funding to pay costs related to utility projects eligible for State Revolving Fund reimbursement.

PFM distributed a request for proposals on March 6, to a list of local and regional financial institutions to identify the qualified financial institutions that could provide the City with a fixed (at draw) and/or variable rate line of credit at the lowest overall borrowing cost, according to certain conditions as determined by the City. On April 2, the City received two proposals from Seacoast Bank and Truist.

Staff recommended Seacoast Bank as the loan provider, and on April 22, 2024, the Commission adopted Resolution 2024-13 to enter into a loan agreement with Seacoast Bank.

After the Commission’s approval, the Florida Department of Environmental Protection (FDEP) requested that changes be made to the loan agreements. Negotiations resulted in lowering the line of credit from $20 million to $10 million and clarifying that system development fees are included as the pledged revenues and some other minor tweaks. Due to the change in the loan term the resolution must be brought back before the Commission for approval.

It is reported that Seacoast Bank has agreed to hold the terms the same as their original bid.

The next Newberry City Commission meeting will be held on July 8 at 7 p.m.

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