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Item I4BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meetin-It, Date: October 18, 20061KeN, Vest Dir ision: BOCC-District 5 Bulk Item: Yes No x Department: Comm. Patton Staff Contact Person: Donna Hanson AGENDA ITEM WORDING: Approval of a resolution of the Key Largo Wastewater Treatment District requesting the Monroe County Board of County Commissioners to forgive a $914,285 loan. ITEM BACKGROUND: See resolution, 9/19/06 memo from General Manager Charles Fishburn, and Original Loan Agreement attached. PREVIOUS RELEVANT BOCC ACTION: CONTRACT/AGREEMENT CHANGES: STAFF RECOMMENDATIONS: 'I'OTAI_ COST: $914,285 BUDGETED: Yes No COST TO COUNTY: SOURCE OF FUNDS: REVENUE PRODUCING: )'es — No AMOUNT PER MONTH Year APPROVED BY: County Att_y QMB Purchasin Risk Management DOCUMENTATION: Included x Not Required ❑ISPOSITION: Kc,,-ised S. AGENDA ITEM # RESOLUTION NO. 43-09-06 A RESOLUTION OFTHE KEY LARGO WASTEWATER TREATMENT DISTRICT, REQUESTING THE MONROE COUNTY BOARD OF COUNTY COMMISSIONERS TO FORGIVE A S914,285 LOAN WIAERI AS the 11strict and the County entered into a lozui agreement dated December �, 2005, raid %%1JER1 AS the loan agreement provides for payment b- the District to �N•ionroe Count% o1' 10 equal installments ot'S91 A82.50: and WHEREAS! the loan agreement further provides in Paragraph 3(b) that all payments made by the District to the County will be placed in a special fund and returned to the District for v,astewater and collection projects located within, or serving the residents of, the Key Largo Wastewater] reatnient District: and WI IEREAS_ the District agrees to expend amounts equal to all sums that would have been repaid to the County for the purposes provided in Paragraph 3(b) of the loan agreement; and \k'HERE.AS, forgiveness of the loan subject to the conditions below is consistent with the intent of the Ioan agreement and in the best interests of the L'otin ty: NOVA', THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE KEY LARGO WASTEWATER TREATMENT DISTRICT THAT THE DISTRICT HEREBY REQUESTS THAT MONROE COUNTY FORGIVE THE LOAN DESCRIBED IN THE LOAN AGREEMENT, ON TERMS AND CONDITIONS TO BE AGREED BETWEEN THE DISTRICTAND THE COUNTY AND INCORPORATED INTO A COUNTY RIISOLU`rION. PASSED AND ADOPTED this 20 day of Septenil-)er, 2006. KEY LARGO WASTEWATER TREATMCNT DISTRICT GOVERNING BOARD I*'C i A 1-he foregoing RESOLU'l [ON was offered by ComIissioner Tobi Ti who moved its approval. The motion was seconded by Commissionel- Brooks and being put to a vote the. result ,kas as I' llows: AYE NAY Chairman Claude Bullock Commissioner Clary Bauman Commissioner Charles Brooks Commissioner Andrew Tobin Commissioner Norman Higgins I he Chairman thereupon declared Resolution No. 43-09-06 duly passed and adopted the 20"' clay of September. 2006. KF Y LARGO WAS E WATFR l'Rl- ATMEN I- DIS"IRIC'T Chairman Claude Bullock ATTEST: Carol \'4�,;J�rk S11AL. = Approved to as to form and legal sutiiciericy / `? District Counsel_ Thomas N7. Dd lon t. Carol Walker, complete true` IY !Opt this Is a docu t 1+Ctia a' .4f g{l orlgfnaf 4 21DO day of Carol Walker, SM5 Cterk - f��� �17 Ps 2 P.D. Sox 491 Key Largo, FL 33037 Phone: 305 453-5804 Fax: 305-453-5007 Memo TCK BOCC )�, -'� r Rversc Charles F. Fishbum, General Man r Date: September 19, M Rae Agenda Item i.1. Funding of Key Largo Wastewater Treatment District mitigation fees PROPOSAL This is a proposal for creative measures to fund the Key Largo Wastewater Treatment District obligation to pay $423,797.56 to the Monroe County Environmental Land Management Restoration Fund. This payment is required under the County Land Development Regulations in connection with clearing of an additional land final) 1.6 acres of High Duality hammock at the Dis7ws MM 100.5 central wastewater treatment plant site. The Monroe County Environmental Land Management Restoration Fund benefits all of the citizens of Monroe County. Funding of Mis obligation can be accomplished with wt impact to the County budget. The funding could be accomplished by forging the County's ri&interest Ivan to the District. CENTRAL WASTEWATER TREATMENT PLANT BACKGRGUND The MM 100.5 site was purchased by the County and transferred to the District for use as a central wastewater treatment plant The total area of iris site is 21 acres. Therefore, under the applicable land development regulations, only 4.2 acres may be developed, and the remainder must be conserved as open space. This site was the subject of an environmental assessment in 2000 (two years prior to the District's forrnation) which resulted In a decision to clear and develop initially only 2.6 acres. Pursuant to the land devebprnent regulations in effect at the time, the Disf7ict was required to pay $295,000 irft the Monroe County Environmental Land Management Restoration Fund. The County funded this payment. Afthough the District considered the initial daar ng of 2.6 acres to be inadequate for full development of central wastewater treatrnerrt facilities, the District accepted the decision to limit clearing to that amount in order to avoid delays in oonsirucctbri of the initial project, which serves Key Largo Trailer Village, Key Largo Park, and Sunset Waterways, all adjacent to the plant. PLANNED TREATMENT PLANT EXPANSION In the past two years, the District has advanced its planning prooess sufficiently to identify an additional 1_6 acres for plant expansion. Notably, the District expects that this expansion will allow development of a central wastewater treat Trent plant sufficiently sized to serve the entire District. The District does not expect any further clearing to be required at any time in the future. The study by Dr. Phil Frank of Consulting Engineering A Science, Inc., included in your agenda Package, calculated the required fee at $423,796.56. These funds, along with the original payment of $295,000, will be used for habitat restoration that benefits all of Monroe County, and not just the District. These funds represent the lion's share of monies in the Monroe County Environmental Land Management Restoration Fund Restoration Fund PAST COUNTY cQNTRi18uTIONs Grants and Loan forgiven The District recognizes and appreciates the contributions made by Monroe County in the past to help the Distridt become established. These contributions include a $20 MAW grant in 2005, forgiveness of a $100,000 loan in 2006, and other funds. Interest Fme Loan One aspect of the funding to date was a no -interest loan of $914,285 to the District under the 2003 Interbcai Agreement. The ban agreement provides for repayment to begin in 2008, at the fate of $91,428.501year. The loan agreement provides, in part: The County agrees to establish a special fund for the receipt and deposit of the moneys paid by the District to the County pursuant to subparagraph 3{a) of this ban agreement The County agrees to return the moneys deposited in that fund for wastewater treatment and collection Projects kcated within, or serving the residents of, the Key Largo Wastewater Treatment District The moneys so deposited shall be spent for District wastewater projects pursuant to interkx;al agreemen4s] entered into between the parties. In effect, this is a grant to the District, with an intermediate step oonsisting of the Distfict paying the funds to the County and the County returning the funds to the District This intermediate step probably made sense when the District was raw and unproven. However, now that the District has demonstrated its ability to construct and operate the system, this step is unnecessary. The District suggests that the ban should be forgiven. Forgiving the loan would benefit the County by avoiding the administrative chores attendant to establishing a separate fund and establishing interiocal agreements. It would benefit the District by eliminating the encumbrance on future funds. 0 Page 2 LOAN AGREEMENT KEY LARGO WASTEWATER TREATMENT DISTRICT THIS LOAN AGREEMENT is entered into by and between Monroe County, a political subdivision of the State of Florida (the County) and the Key Largo Wastewater Treatment District, an independent special district (the District), pursuant to Sec. 2.03(A)(2) of an interlocal agreement between the parties effective February 26, 2003 (the interlocal agreement). A copy of the interlocal agreement, together with all its exhibits, is attached as Exhibit A and made a part hereof 1. On or before January 30, 2005, the County shall transfer to the District the sum of $731,428 and shall request the Florida Keys Aqueduct Authority (FKAA) to transfer to the District the sum of $182,857 (which sum the County had previously transferred to the FKAA for the purposes described in paragraph 2 of this loan agreement), 2. a) The District agrees to establish a special fund to be called the Key Largo Trailer Village Project Fund (the Fund) and to deposit therein the money described in Paragraph 1 of this loan agreement. Money in the Fund may only be used to pay the costs of constructing the Key Largo Trailer Village central wastewater treatment and collection system (the Project) that are authorized as appropriate matching expenditures in the DCA/FEMA grant for the Project. A copy of the DCA/FEMA grant is attached to this loan. agreement as Exhibit B. b) The District shall make disbursements or payments from the Fund only for the costs authorized in subparagraph 2(a) of this loan agreement, The District shall prepare and keep the records of such disbursements and payments according to generally accepted governmental accounting principles consistently applied and shall retain those records for a period of five years from the date of the completion of the Project. The records must be made available upon request to an auditor employed by The County Clerk or the State of Florida. If the auditor determines any funds may have been spent for unauthorized purposes, the auditor shall meet with District staff to confirm the purpose of the expenditure. If after meeting with District staff, the auditor determines that any of the funds transferred to the District under this loan agreement were expended for purposes not authorized by this loan agreement or the DCA/FEMA grant, then the District shall, within 30 days of the auditor's determination, return the amount determined by the auditor to have been improperly spent together with interest, calculated at the rate set forth in Sec. 55.03(1), FS, commencing on the date the auditor determined the funds were expended for a purpose not authorized by this loan agreement or the DCA/FEMA grant. This subparagraph controls over and amends any inconsistent language in the interlocal agreement Sec. 2.03(A)(2). c) Moneys transferred to the District under this loan agreement for deposit in the Fund must be deposited and secured in the same manner as Public funds are authorized to be deposited and secured by the laws of the State of Florida. Any interest paid on moneys deposited in the Fund will Belong to the District. 3. a) Beginning on July 1, 2008, and on each July 1s` thereafter through July 1, 2018, the District shall pay to the County $91,428.50 for repayment of the funds transferred to the District pursuant to paragraph 1 of this loan agreement If the District has not collected a sufficient amount of funds to cover the loan repayment amounts each July 1*` until the loan is repaid in full, the District shall have the right to request the County to renegotiate the terms of this Agreement relating to repayment of the funds. The parties agree that the $91,428.50 is entirely a return of principal and that the County may not demand, or seek to charge, the District any interest on the funds transferred to the District pursuant to this loan agreement. The only exception to this no interest provision is the interest payable on funds determined to have been spent for a purpose not authorized by this loan agreement. b) The County agrees to establish a special fund for the receipt and deposit of the moneys paid by the District to the County pursuant to Subparagraph 3(a) of this loan agreement. The County agrees to return the moneys deposited in that fund for wastewater treatment and collection projects located within, or serving the residents of, the Key Largo Wastewater Treatment District. The moneys so deposited shall be spent for District wastewater projects pursuant to interlocal agreement(s) entered into between the parties. 4. The requirement of each party that moneys be deposited and accounted for in a special fund may be satisfied by deposit in a single non-exclusive bank account or investment pool provided that adequate accounting records are maintained to reflect and control the restricted allocation of the moneys on deposit. 5. This loan agreement is not intended to, and does not give rise to, legal or beneficial rights an behalf of any third parties. The contractors, subcontractors, subsubcontraetors, materialrnen and tort claimants of the District, or any other third party, claiming or demanding damages, liability, payment, or other demand on account of an act, acts or omission or omissions of the District, its officers, employees, or agents, must seek the relief demanded or claimed from the District only. 6. The parties agree that prior to the time the first repayment amount is due to the County, as stated in paragraph 3 herein, the parties shall revisit and reconsider this Agreement to determine whether the terms and conditions of the repayment schedule should be amended. 7. All writings required by this loan agreement (including the payment of moneys) shall be sent to: Monroe CoQilty County Administrator Gato Building 1100 Simonton Street Key West, FL 33040 Di rl General Manager PO Box 491 Key Largo, FL 33037 by certified mail, return receipt requested, or by a national courier service such as Federal Express. The above addresses may be changed by written notification. 8. This written loan agreement is the parties' final mutual understanding. It supersedes any prior negotiations or agreements, whether written (in any format) or oral, and may only be amended by a writing signed by both parties. 9. This loan agreement will take effect on the signature date of the last party to execute the agreement. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the dates written below. (SEAL) ATTEST; DANNY L. KOLHAGE, CLERK 4nepotjjtvy Cierk Date Diecekher 15.2005 _ (SEAL) Attest' B y Date 3ConKLWWD4 MONROE COUNTY ATTORNEY APP 0V I D AS TO FORM! JOHN R. COLLINS COUNTY aoRNEY Dele, p_ _______.- 3 BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA 91-j arrr�°rarr ,d� J Mayor Dixie M. Spehar KEY LARGO WASTEWATER TREATMENT DISTRICT By Chairman i United States Department of the Interior FISH AND WILDLIFE SERVICE South Florida Ecological Services Office 1339 20'" Street Vero Beach, Florida 32960 October 10, 2006 Claude Bullock Chairman, Key Largo Wastewater Treatment District Post Office Box 491 Key Largo, Florida 33037 Service federal Activity Code: 41420-06-FA-1604 Service Consultation Code: 41420-2000-T-0736 Applicant: Key Largo Wastewater Treatment District Date Received: September 22, 2006 County: Monroe Thank you for your request for technical assistance with the Fish and Wildlife Service (Service) on the proposed addition to the Key Largo Wastewater Treatment Plant. You propose to contract a new facility, additional access, and additional accessories on about 1.6 acres. The project is located at Mile Marker 100.5, on the Island of Key Largo, Monroe County, Florida. Site Description The 21-acre parcel is occupied in part by an existing wastewater treatment facility. About 18.4 acres of the parcel are undeveloped and vegetated with tropical hardwood hammock plant species. A vegetation survey you submitted lists over 50 native plant species on the property, including several State -listed species. Hammock quality is generally high quality. The property is bounded to the west by U.S. Highway 1. Effects Analysis The native species documented on the lot include wild coffee (Psychotria nervosa), wild time (Zanthoxylum fagara), torchwood (Amyris elemifera), and yellowroot (Morinda royoc), all species preferred by the federally endangered Schaus swallowtail butterfly (Heraclides aristademus ponceanus) for breeding and feeding. The site is shown on the Service's Geographic Information System database as being part of a larger hammock identified as potential for the Schaus swallowtail butterfly, the Stock Island tree snail (Orthalfcus reses reses), and the eastern indigo snake (Drymarchon corals couperi). Continuity with additional potential or known habitat is an important factor in evaluating the suitability of habitat for a species and impacts of proposed projects. At the Service's request, surveys for presence or absence of the t t/r�1i d the Schaus swallowtail butterfly were conducted. No evidence of the I Usk OCT 16 20M TAKE PRIDE' INAMERICA` KEY LARQo wAg�ATER It T TREATMENT DISTRICT 4 Claude Bullock Page 2 Schaus swallowtail butterflys or Stock Island tree snails were found within or adjacent to the proposed construction footprint. A small mammal study did not reveal the presence of any protected small mammal species on the property. To mitigate any potential deleterious effects to protected species, you propose three actions. You propose to land -clear native vegetation on the proposed site and have a supervising biologist knowledgeable of tree snails on -site during clearing to identify any protected tree snails, and, if any are found, relocate them according to a relocation protocol you submitted to the Service for review. Eastern indigo snake protection measures will be employed during construction. You intend to contribute $424,000 to the Monroe County Environmental Land Management and Restoration Fund (MCELMRF) to provide financial resources for the restoration of hardwood hammock habitat on the island of Key Largo. This figure is based on the estimated cost of restoring an area equal or greater than 1.6 acres and brings the total fiords available for hardwood hammock restoration as a result of the two project phases to $719,000. The Service recommends the $424,000 be transferred to the MCELMRF prior to onset of clearing and construction. The Service has agreed the funds may be used cooperatively with the Florida Department of Environmental Protection (FDEP) to restore tropical hardwood hammock on the island of Key Largo. To ensure long-term preservation of the remaining hardwood hammock habitat, you propose to transfer title of 16.8 acres of the remaining adjacent tropical hardwood hammock habitat to the FDEP. If FDEP is unwilling to accept the property, the Monroe County Land Authority would be the secondary recipient. You propose a deed of conservation easement be placed on the property with Monroe County and the Service as co -grantees. The Service recommends the removal of trash and debris on the remainder of the property prior to title conveyance. Determination The Service believes the project as submitted, including on -site conservation measures, monetary contributions for restoration, and land title transfer, has sufficient measures to minimize any adverse impacts to the Stock Island tree snail and the Schaus Swallowtail butterfly. The Service further believes relocation of any protected tree snails, according to the plan submitted, will not result in take in the form of harm or harassment of this species. The Service recommends title transfer of the remaining property and monetary contribution occur as soon as practicable and the Service is notified in writing of the date of the transfer and the grantee. The Service commends the Key Largo Wastewater Treatment District (District) on its commitment to protect the unique and sensitive environment of the Florida Keys and believes this project should serve as an exemplary action for future public service projects in Monroe County. The results obtained could not have been achieved without the District's early and close coordination with the Service. We look forward to continuing working closely with the District, Monroe County Land Authority, and FDEP to ensure restoration and preservation of native habitat. Claude Bi lock Page 3 Please note: Service review of this project in no way implies compliance with other Federal, State, county, or municipal regulations. It is the applicant's responsibility to ensure the project meets all applicable regulations. If modifications are made to the project, if additional information involving potential effects to listed species becomes available, if a new species is listed, or if designated critical habitat may be adversely affected by the project, reinitiation of technical assistance may be necessary. Thank you for your assistance in protecting the environment of the Florida Keys. Please direct any questions or related correspondence to Winston Hobgood at the address above or contact him by telephone at 772-562-3909, extension 306. Sincerely yours, V& Paul Souza Field Supervisor South Florida Ecological Services Office cc: Florida Department of Community Affairs, Marathon, Florida (Robin Branda) FWC, West. Palm Beach, Florida (Ricardo Zambara) Monroe Cmunty Land Authority, Marathon, Florida (Mark Rosch) FDEP, Key Largo, Florida (Pat Wells)