Item F7b
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date:
Bulk Item: Yes
February 17, 2000
No X
Division: Growth ManaJ:!;ement
Department: Marine Resources
AGENDA ITEM WORDING: Approval of resolution requesting the Florida Keys Aqueduct Authority to
enter into contract negotiations with the recommended firm to designlbuild/operate the Key Largo Wastewater
Treatment Facility.
ITEM BACKGROUND: Monroe County has entered into a Memorandum of Understanding with the Florida
Keys Aqueduct Authority, which is the designated sole provider of wastewater services for unincorporated
Monroe County. Therefore, as the wastewater authority for the County, the FKAA is the agency responsible for
entering into agreements with private entities for delivery of wastewater services on behalf of the County.
The proposed resolution asks FKAA to enter into the negotiations with the firm recommended by the BOCC
and includes policy guidelines that the BOCC may want to be incorporated into the contract that will effect the
costs of the proposed services to its citizens and the scope of the project. In addition, the resolution asks the
FKAA to work with the County Growth Management staff in selection and recommendation of candidate sites
for the siting of the wastewater treatment facilities.
PREVIOUS RELEVANT BOARD ACTION: The BOCC and FKAA entered into a Memorandum of
Understanding on May 22, 1998 establishing shared responsibilities for the development of a wastewater utility
and the Sanitary Wastewater Master Plan in the Keys.
STAFF RECOMMENDATION: Approval
\
TOTAL COST:
N/A
BUDGETED: Yes
No X
COST TO COUNTY:
N/A
APPROVED BY: County Attorney X OMB/Purchasing
N/ A Risk Management
N/A
DEPARTMENT DIRECTOR APPROVAL:
DIVISION DIRECTOR APPROVAL:
Timothy J. McGarry,
r of Growth Management
DOCUMENTATION: Included
X
To follow
Not required
DISPOSITION:
Agenda Item #:
;J- F7b
MEMORANDUM
TO: Board of County Commissioners
FROM: Timothy J. McGarry, Director of Growth Managem~
DATE: February 10, 2000
SUBJECT: Resolution Requesting FKAA to Negotiate a
Contract with the Firm of Ogden Water Systems, Inc.
Overview
If the Board of County Commissioners approved the firm of Ogden Water
Systems, Inc., in the previous agenda item, the Board will then be asked to
adopt a resolution requesting the Florida Keys Aqueduct Authority (FKAA) to
enter into contract negotiations with the firm to design/build/operate a
wastewater treatment system in Key Largo. The proposed resolution includes
specific concerns and issues that the Growth Management Division staff
recommends need to be addressed during the contract negotiations and project
construction.
It also requests that FKAA work with County staff to identify, evaluate, and
recommend candidate sites for location of the proposed wastewater treatment
facility. Final site selection approval will be made by the Board of County
Commissioners. FKAA is also requested to consult with the Board of County
Commissioners prior to contract negotiation to discuss proposed hook-up and
monthly fees and other financial aspects of the project.
The list of issues and concerns to be communicated to the FKAA in the
resolution is not intended to be all inclusive. The Board of County
Commissioners may want to make revisions, additions, and deletions as it
deems appropriate.
Background
With the approval of the firm of Ogden Water Systems, Inc., to enter into
negotiations with Florida Keys Aqueduct Authority (FKAA) to
design/build/operate a wastewater treatment system in Key Largo, the County
enters into the next phase of the process which is contract negotiation. As the
designated wastewater provider in the County, the Florida Keys Aqueduct
Authority is the agency that should negotiate a contract with the firm.
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The contract negotiations will be the critical phase of the design/build/operate
Request for Proposal process. Questions of construction/operation/maintenance
cost guarantees, property owner satisfaction, equipment warrantees,
operation/maintenance performance level guarantees, and other substantive
measures to protect the County's and FKAA's interests and will need to be
addressed in contract negotiation.
Significant concerns, such as optional project components, financing and debt
servicing of the project, connection and monthly user charges, site selection and
acquisition for wastewater treatment facilities, and other concerns of the Board of
County Commissioners should be addressed in contract negotiations or
communicated directly to FKAA.
Analysis
Much of the content, terms, and conditions of the contract to be negotiated will
be governed by the "General and Supplemental Administrative Conditions," to
which each responding firm agreed to when responding to the Request for
Proposals. However, these rules will not necessarily ensure all issues or policy
concerns of the Board of County Commissioners are necessarily addressed
during contract negotiations, particularly since approval of the contract will rest
with the Florida Keys Aqueduct Authority.
These issues and concerns should be communicated to the Florida Keys
Aqueduct Authority in the resolution requesting the FKAA to enter into
negotiations with Ogden Water Systems, Inc. The following is a discussion of
these same issues and concerns for consideration:
Critical Issues and Recommendations of TEP
The Technical Evaluation Panel has done a commendable job in identifying
specific critical issues and concerns that should be addressed in the contract
negotiation process. In addition, the complexities of negotiating a contract for a
large $59.8 million wastewater project and its construction oversight, requires, in
the opinion of both the TEP and Growth Management Division staff, enlisting
expert technical assistance to help in contract negotiations and construction
management.
Optional Project Component
OWS proposed a reuse option in its proposal, costing approximately $2.84
million, which was not included in the total project cost proposal of $59.8 million.1
1 This option involves the use of treated effluent (commonly called "gray" water) to irrigate
landscaped areas.
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The proposed reuse component is intended to serve commercial and public
lands along US Highway 1 by providing 1.6 million gallons per day of irrigation
water. The potential demand for reuse water, overall small costs of this
component compared to the entire system, and the environmental and economic
benefits of this option warrant further examination during contract negotiations.
Community Character Issues
The contract needs to incorporate opportunities for both public and County staff
input on community character and compatibility issues, such as site design,
exterior design of wastewater treatment facilities and the location of these
facilities. In addition, to help eliminate potential delays in getting the project
underway, the FKAA needs to work with County Growth Management staff in
identifying, evaluating, and recommending candidate sites (approximately 10
acres) for locating the wastewater treatment plant prior to contract execution.
The Board of County Commissioners should have final approval of the site
location for this facility.
Another important issue is the real need to provide for a public outreach program
that keeps the citizens informed and responds to citizen complaints and service
problems during the construction phase of the project, such as assistance in
finding on-site systems. This major project will be very disruptive in the lives of
Key Largo citizens and every effort must be made to keep this disruption at a
minimum.
Related to this issue is the need to ensure that the trenching of collection lines
and subsequent patching of County roads is closely coordinated with the
resurfacing program of the Division of Public Works. Some provision for this
coordination should be included in the contract.
Consultation with the BaCC
The Florida Keys Aqueduct Authority will have total responsibility for negotiating
the contract; however, further prior to contract negotiation, the FKAA should be
asked to come back before the Board of County Commissioners to go over
proposed connection fees, monthly customer rates, and other financial items to
receive comment from the Board. At this time, the Board of County
Commissioners would also be in a position to determine if public funds are
necessary to help write-down the capital costs of the project.
Recommendation
It is recommended that the BaCC adopt the proposed resolution, with any
revisions it may deem appropriate, requesting the Florida Keys Aqueduct
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authority to enter into contract negotiations with the firm of Ogden Water
Systems, Inc.
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RESOLUTION NO.
-2000
A RESOLUTION OF THE MONROE COUNTY BOARD
OF COUNTY COMMISSIONERS (BOCC) REQUESTING
THE FLORIDA KEYS AQUEDUCT AUTHORITY (FKAA)
TO ENTER INTO CONTRACT NEGOTIATIONS WITH
THE OGDEN WATER SYSTEMS, INC., TO
DESIGN/BUILD/OPERATE A WASTEWATER
TREATMENT FACILITY IN KEY LARGO AND
REQUESTING FKAA TO ADDRESS SPECIFIC
CONCERNS AND ISSUES IN ITS CONTRACT
NEGOTIATIONS, ENLIST OUTSIDE EXPERT
TECHNICAL ASSISTANCE FOR CONTRACT
NEGOTIATIONS AND CONSTRUCTION
MANAGEMENT, AND REPORT BACK TO THE BOCC
ON HOOK-UP AND MONTHLY USER FEES PRIOR TO
CONTRACT EXECUTION
WHEREAS, the Florida Keys Aqueduct Authority is the wastewater authority for
unincorporated Monroe County as established by a special act of the Florida Legislature
under Chapter 76-441, Laws of Florida; and,
WHEREAS, Monroe County and the Florida Keys Aqueduct Authority have
entered into various memoranda of understanding that describe the shared
responsibilities between the County and the Authority for the development of a
wastewater utility in the Keys; and,
WHEREAS, Monroe County is following a Request for Proposal (RFP) process
for the design/build or design/build/operate a wastewater treatment system in Key Largo;
and,
WHEREAS, a Technical Evaluation Panel composed of representatives from
various federal, state, and local agencies, was established to review the responses
received from firms in the RFP process and to make recommendations to the Monroe
County Board of Commissioners; and,
WHEREAS, the Technical Evaluation Panel has completed its assignment and
has provided Monroe County with its recommendations; and,
WHEREAS, the Monroe County Board of Comissioners has considered the
recommendations of the Technical Evaluation Panel and the County staff; and,
WHEREAS, after considering these recommendations, the Monroe County
Board of Commissioners has approved the firm of Ogden Water Systems, Inc., for
entering into contract negotiations with the Florida Keys Aqueduct Authority to
design/build/operate a wastewater treatment system in Key Largo; and,
WHEREAS, the Monroe County Board of Commissioners desires that the Florida
Keys Aqueduct Authority, as the wastewater authority for unincorporated Monroe
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County, enter into contract negotiations with Ogden Water Systems, Inc., to
design/build/operate a wastewater treatment system for Key Largo; and,
WHEREAS, the Monroe County Board of Commissioners has policy concerns
and issues and requests that the Florida Keys Aqueduct Authority address them in its
contract negotiations with Ogden Water Systems, Inc; and,
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS, MONROE COUNTY, FLORIDA THAT:
1. The Florida Keys Aqueduct Authority is requested to enter into contract
negotiations with Ogden Water Systems, Inc., to design/build/operate a
wastewater treatment system in Key Largo serving an area from Tavernier Creek
to approximately U.S. 1Mile Marker 106.
2. The Florida Keys Aqueduct Authority is requested to consider and pursue the
following concerns and issues in its negotiation of the contract with Ogden
Waster Systems, Inc:
· Critical Issues raised by the Technical Evaluation Panel in its
recommendations to Monroe County (attached as Exhibit 1); and,
· Adding the optional $2.84 million reuse option to the project; and,
· Providing for County Growth Management Division staff review
and citizen input on the exterior design and site location of the
wastewater treatment facilities and collection system; and,
· Providing for public outreach program to keep our citizens
informed and to manage any citizen complaints and service
problems during the construction phase of project.; and,
· Providing for coordination of construction activity with the County
Public Works Division staff and the County's road resurfacing
program.
3. We highly recommended that the Florida Aqueduct Authority, as recommended
by the Technical Evaluation Panel, seek expert technical assistance to assist it in
the contract negotiations and construction management.
4. The Florida Keys Aqueduct Authority is requested to return to the Board of
County Commissioners prior to execution of the contract to inform and consult
with the Board on proposed hook-up fees and monthly user rates for the
proposed Key Largo wastewater treatment system.
5. The Florida Keys Aqueduct Authority is requested to cooperate with the Growth
Management Division staff in the identification, evaluation, and selection of
candidate sites for the location of the wastewater treatment facility prior to
contract execution. The final site selection approval shall be made by the Board
of County Commissioners.
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PASSED AND ADOPTED by the Board of County Commissioners, Monroe
County, Florida at a regular meeting of said Board held on the 17th day of February,
AD., 2000.
Mayor Freeman
Mayor Pro Tem Neugent
Commissioner Harvey
Commissioner Reich
Commissioner Williams
BOARD OF COUNTY COMMISSIONERS
MONROE COUNTY, FLORIDA
BY:
MAYOR/CHAIRMAN
(SEAL)
A TIEST: DANNY L. KOLHAGE, CLERK
DEPUTY CLERK
BY:
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Exhibit 1
TEP Recommendations
Critical Issues to be addressed
General Critical Issues
1. Financial and performance guarantees and penalties.
2. Schedule for substantial construction completion for core service area and
remainder of project.
3. Schedule for site selection, evaluation of suitability of site, provision for
environmental mitigation, and cost responsibility for project delays and
other site complications.
4. Restoration of private property.
5. Street resurfacing beyond patching.
6. County responsibilities for work on private property.
7. Prohibition on installing any liT" for a future connection to the wastewater
collection system.
8. Extent of the excess (over existing need) design capacity.
9. Odor control at major lift stations and vacuum stations as well as the
treatment plant.
10. Service area boundaries regardless of EDU count.
11. Traffic-bearing vacuum pit lids.
12. Equipment and materials selection and approval process.
13. Contingency for alternative sludge disposal.
14. The proposals will remain valid for a period of 180 days from the date of
the cost opening. Cost proposals will expire on June 13, 2000.
15. County responsibilities for structuring the financing of the project.
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Exhibit 1 (Continued)
Specific Critical Issues
1. County's role in procuring equipment and material, if sales tax savings is
to be achieved.
2. County's responsibilities in procuring project sites.
3. Permitting of alternative disposal options (deep well versus "other").
4. Costs and responsibilities associated with effluent reuse, if that is to be
added to the base project.
5. Costs and responsibilities associated with affordable housing, if that is to
be added to the base project.
6. Existing collection sewers that are to be rehabilitated.
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Resolution of Support
for
Florida Keys Aqueduct Authority Negotiations with Top-Ranked Firm for
Key Largo Wastewater Treatment Facility
'"
With the following instructions: ~ ~
L fully vvc'lh:mtc allJ vUWSiJtl LI/v 1(, t1:Je 8"t~(I1r:- ~~ ~11.9~
I. Z Keep costs as close as possible to the proposed $2,500.00 per equivalent development unit
(EDU) hook-up fee and $35.00 per EDU monthly fee, recognizing that the Florida Keys
Aqueduct Authority (FKAA) will need to add their administrative costs.
2.1 A series of at least three (3) Publ ic ~ must be held in Key Largo prior to the signing of
the contract in order to keep the public apprized of developments in contractual negotiations and
community impacts (one of those meetings should be devoted to site selection, as detailed
below).
3.,..{ Possible sites for the wastewater treatment plant will be presented at a well-advertised public
meeting after Monroe County's Growth Management Department has submitted details of
possible sites and a list of pros and cons for each site to area newspapers("Ally proposed site
must be consistent with the Monroe County Comprehensive Plan. Site selection will be ..J"
determined utilizing the opinions and views of the citizens of Key Largo. _....... h~"':""'~
-to ..J4..'>o:..,....'\'- ~~'
'1.$. ~<'+QgtgriJy AIdress the critical issues and concerns raised by the Re st for Proposals
(RFP) "Technical Evaluation Panel" established by the U.S. Environm al Protection Agency in
partnership with the Florida Department of Environmental Protection. F/44A ~ ~~
~~~ ~ovrGo~~"",J.- - --~ -~Cor~:s-~r.# ~p 1,&" ~11J.
..5. jf. Include language withm tlie contrac~in ~BOCC's Resolution~?~u~port, and
. within all enabling ordinances to ensure that the decision to pursue cost effective wastewater
treatment upgrades to improve water quality must be consistent with the County's
Comprehensive Plan and Rate of Growth Ordinance (RaGa) by NOT leading to increased
growth through excessive design capacity of the wastewater management system or through
future expansion of the wastewater facility.
4~~