Item S1
jl
John M. Koenig, Sr.
Chairman
Key West
"
Florida Keys
Aqueduct Authority ~/d
Post Office Box 1239 d
1100 Kennedy Drive ~ ~
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Albert O. Appell
Vice-Chairman
Duck Key
.
Mary L. Rice
Secretary- Treasurer
Marathon
Linda B. Wheeler
Key West
Harry E. Cronin
Key Largo
Roger Braun
Executive Director
July 30, 2001
MEMORANDUM OF TRANSMITTAL
To:
From:
Subject:
James Roberts
Monroe County Administrator
).. '-__0")
Roger Braun i,i'7.:i~;,S~~""___
Executive Director
Requested BOCC Resolution for August 15/16/,2001 Agenda
Reimbursement Consideration, Key Largo Wastewater District
Ogden Contract Negotiations, Financing, & Rate Structure
Attached is the proposed Resolution for inclusion on the August 16/17 agenda. If there is
any wording revisions you wish to make, please contact me before your August 1 st
agenda deadline.
It is the direction of the FKAA Board of Directors that this outstanding matter be
officially reviewed and considered by the BOCC at their August meeting.
Your continued assistance in placing this Resolution on the agenda is appreciated.
/..SI
RESOLUTION NO. -2001
A RESOLUTION OF THE MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
(BOCC) AUTHORIZING PAYMENT TO THE FLORIDA KEYS AQUEDUCT AUTHORITY
(FKAA) FOR DIRECT FKAA EXPENSES INCURRED IN THE CONTRACT NEGOTIATIONS
WITH OGDEN WATER SYSTEMS, INC. TO DESIGN/BUILD/OPERATE A WASTEWATER
TREATMENT FACILITY IN KEY LARGO; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Monroe County has entered into a Memorandum of Understanding (as amended)
with the FKAA establishing shared responsibilities for the development of a wastewater utility in the
Keys; and
WHEREAS, Monroe County Resolution 035-2000 (January 19, 2000) determined that there is
a pressing need for central sewage infrastructure in the area (Key Largo) to be served in the Ogden
Water Systems, Inc. proposal; and
WHEREAS, Monroe County Resolution 093-2000 (February 17, 2000), requested FKAA to
enter into contract negotiations with Ogden Water Systems, Inc. based on their official submittal to
Monroe County to design/build/operate a wastewater treatment 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 with an Ogden cost proposal
expiration date of June 13, 2000; and
WHEREAS, Monroe County Resolution 197-2000 (May 17, 2000) approved FKAA Resolution
00-05, which created the Key Largo Wastewater District; and
WHEREAS, Monroe County Resolution 232-2000 (June 28, 2000) acknowledged that the
FKAA had met the intent of Monroe County Resolution 093-2000 with the FKAA's submitted
negotiated design/build contract and Operation and Maintenance Agreement for the Facilities;
executed Clean Water State Revolving Fund Loan Agreement between FKAA and FDEP in an
estimated loan amount of $76,388,000 to finance construction-related costs of the Facilities; and had
developed a rate structure within the financial requirements of the loan, legally defensible and within
federal reasonableness guidelines; and
WHEREAS, on July 5, 2000, the FKAA then executed the design/build contract and Operation
and Maintenance Agreement for the Facilities; and
WHEREAS, a subsequent independent investigation report (initiated in August 2000) by the
State Attorney for Monroe County caused the Monroe County Attorney and FKAA General Counsel
to conclude and agree that a declaratory judgment needed to be sought to determine the validity of
the executed design/build contract and Operation and Maintenance Agreement for the Facilities prior
to issuance of a Notice to Proceed; and
WHEREAS, May 16, 2001, the Circuit Court of the 16th Judicial Circuit of the State of Florida
ordered and adjudged that all actions taken by the BOCC and the TEP, as they relate to the selection
of Ogden and the execution of the Contract between Ogden and the FKAA are void ab initio.
Page 1 of 2
,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE
COUNTY, FLORIDA:
Section1. The BOCC acknowledges that the authorized expenditures of the FKAA in the
contract negotiations, securing project financing and establishment of a rate structure/customer base
for the Key Largo Wastewater District were incurred during the mutual effort to implement Monroe
County's Sanitary Wastewater Master Plan.
Section 2. The BOCC acknowledges that the FKAA had established a limited independent
loan to underwrite these expenses in anticipation of immediate reimbursement from construction
finance funding after execution of the design/build contract and Operation and Maintenance
Agreement for the Facilities and cannot by statute combine a water system with any sewer system for
purposes of financing.
Section 3. The BOCC shall reimburse the FKAA the authorized expenditures of
$423,927.39, per attached Exhibit A within forty-five (45) days of the passage of this resolution,
verification of expenditure documents by the County Clerk's office, and FKAA submission of
applicable documents to the County Administrator for future development of central sewer facilities in
the Key Largo Wastewater District.
Section 4. The BOCC recognizes the applicable expenditures in Exhibit A shall be
reimbursable wastewater project expenditures from the future implementation of wastewater facilities
in the Key Largo Wastewater District and such expenditures shall be collected. If the wastewater
facilities are designed, built and operated through the authority of the FKAA, then those authorized
reimbursed expenditures under Exhibit A shall be collected by the FKAA and paid to Monroe County.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida,
at a regular meeting of said Board held on the day of August, 2001.
Mayor George Neugent
Commissioner Charles "Sonny' McCoy
Commissioner Murray Nelson
Commissioner Dixie Spehar
Commissioner Nora Williams
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
(SEAL)
Attest: DANNY L. KOLHAGE, Clerk
By:
By:
Deputy Clerk
Mayor/Chairperson
Page 2 of 2
Florida Keys Aqueduct Authority
Schedule of Expenditures
Key Largo Project #4004-00
July 31, 2001
Personnel
Benefits
Facilities
Travel
Equipment
Supplies
Legal Services
Engineering- planning & design
Financial Services
Other Contractual Services
Miscellaneous
$79,896.98
20,647.89
15,300.00
8,047.80
2,517.99
246.37
205,297.91
76,621.14
54,781.03
816.31
13,271.65
PROJECT TOTAL
477,445.07
Paid - EPA Water Quality Grant
PROJECT TOTAL LESS GRANT
(75,272.67)
402,172.40
Interest (April 2000 - July 2001)
21,754.99
BALANCE DUE
$423,927.39
EXHIBIT A
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