#6th Amendment 10/17/2012 DANNYL. KOLHAGE
CLERK OF THE CIRCUIT COURT
Od TE: November.5, 2012
6
TO: Elizabeth Wood. SeniorAdministrator
Server Projects y1�
FROM: Isabel C. DeSanlis,
At the October 17, 2012, Board of County Commissioner's meeting, the Board
approved the following:
Item 11 A* h Amendment to the Cudjoe Regional Interlocal Agreement to provide a
schedule of advances and method of maintaining accountability for same during the construction
of the project
Enclosed is a duplicate original of the above-mentioned for your handling.
Should you have any questions, please do not hesitate to contact this office.
cc: County Attorney
Finance
File J
4110 a
SIXTH AMENDMENT TO
INTERLOCAL AGREEMENT
FOR THE
CUDJOE REGIONAL WASTEWATER SYSTEM
THIS SIXTH AMENDMENT TO INTERLOCAL AGREEMENT is entered into this
15th day of August, 2012, pursuant to Sec. 163.01, FS., by and between Monroe County, a
political subdivision of the State of Florida, (County),and the Florida Keys Aqueduct Authority,
an independent special district,(FKAA).
WHEREAS, the County has committed by interlocal agreement dated September 6,
2005, and by Master Lease approved September 25, 2005, to seek funding through federal and
state grants and the issuance of revenue bonds backed by the pledge of infrastructure tax;and to
provide funding to the FKAA for the administration, planning and construction of wastewater
projects owned by Monroe County;and
WHEREAS, on September 20, 2006, the County and the FKAA entered into an
interlocal agreement (ILA) for the County to provide funding for administration, planning and
construction of a wastewater collection system, transmission main and method of treatment to
Advanced Wastewater Treatment (AWT) standards to serve the residents and business in the
Summerland/Cudjoe/Upper Sugarloaf Regional Wastewater System;and
WHEREAS, on April 16, 2008, the parties entered into an amendment to the
Summerland/CudjoelUpper Sugarloaf Regional Wastewater System ILA to expand the service
area to include Big Pine Key through Ramrod Key and Lower Sugarloaf and increase the initial
design budget by$4.5 million for a total budget of 57.5 million so that unincorporated Monroe
County projects could be ready to proceed and eligible for grant funding;and
WHEREAS, on August 3, 2009, the parties amended the agreement, naming the
amendment "INTERLOCAL AGREEMENT SECOND AMENDMENT FOR THE
(EXPANDED) CUDJOE REGIONAL WASTEWATER SYSTEM INCLUDING BIG PINE
KEY,RAMROD KEY, SUMMERLAND KEY,CUDJOE KEY,THE TORCH KEYS(LITTLE,
MIDDLE AND BIG), AND UPPER AND LOWER SUGARLOAF KEYS," in order to expand
the project to include Onsite Sewage treatment and Disposal Systems for areas not in the Master
Plan and to expand the areas encompassed by the original agreement,as amended,to include No
Name Key and certain specified parcels on Boca Chita Key;and
WHEREAS, on September 16, 2009, the parties amended the agreement, through a
document titled "SECOND AMENDMENT TO INTERLOCAL AGREEMENT FOR THE
CUDJOE REGIONAL WASTEWATER SYSTEM," to revise County funding for the project;
and
WHEREAS,on April 18,2012,the BOCC approved a Fourth Amendment to provide the
funding needed for bid preparation related to the Cudjoe Regional Wastewater System project
and
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WHEREAS, on August 15, 2012, the BOCC approved a Fifth Amendment to increase
funding by authorizing payment of an advance to the FKAA, no later than September 15,2012,
of the sum of nine hundred fifty thousand dollars($950,000)for planning,design and contracting
for the Cudjoe Regional Wastewater System project, bringing the total advances paid for the
third and fourth quarters of 2012 to one million four hundred fifty thousand dollars($1,450,000)
and leaving the remaining projected costs at one hundred forty-eight million five hundred fifty
thousand dollars($148,550,000);and
WHEREAS,the State has committed to providing Thirty Million Dollars ($30,000,000)
for funding of the Cudjoe Regional Wastewater System project contingent upon the execution of
contract(s)before March 1,2013;and
WHEREAS, the FKAA has been conducting competitive selection to award the
contract(s)for execution before that date;and
WHEREAS, the Cudjoe Regional Wastewater System project, once commenced, will
require huge outlays of cash, more rapidly than the County's pre-audit processes can
accommodate;and
WHEREAS,the FKAA has partnered with the County to do several wastewater projects
and, as a public entity, is committed to the same level of accountability for the expenditures on
the Cudjoe Regional Wastewater System project;and
WHEREAS, the parties need to prepare for the commencement of construction in a
manner that will assure the FKAA of constantly having sufficient fluids on hand to cover the
costs of constructing the Cudjoe Regional Wastewater System project;and
WHEREAS, accountability for the expenditures on the Cudjoe Regional Wastewater
System project in the absence of the pre-audits normally conducted for such projects necessitates
establishment of a system to insure that sufficient documentation to support the expenditures is
created and retained in a timely manner;and
WHEREAS, it is now necessary to establish a schedule of providing funding to the
FKAA for the Cudjoe Regional Wastewater System project to support uninterrupted construction
of the project and a system to assure accountability; now therefore
IN CONSIDERATION of the mutual consideration and premises set forth below, the
parties agree as follows:
1. Section 1, COUNTY FUNDING, of the Summedand/Cudjoe/Upper Sugarloaf Regional
Wastewater System interlocal agreement dated September 20, 2006 (ILA), as previously
amended on April 16, 2008, August 3, 2009, September 16, 2009, April 18, 2012, and August
15,2012,shall be amended by adding the following sub-sections(A),(B), (C),and(I)):
(A)Treatment Plant Project-Cudjoe Regional Wastewater System.The County shall
pay to the FKAA, after receipt of an invoice from FKAA for each quarter,quarterly
advances for the Cudjoe Regional Wastewater System Treatment Plant project
according to the following schedule:
Is'Quarter 2013 -$2,000,000
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2od Quarter 2013 -$2,000,000
3n°Quarter 2013 -$3,000,000
410 Quarter 2013-$3,000,000
1"Quarter 2014-$3,000,000
2nd Quarter 2014-$3,000,000
3n°Quarter 2014-$2,000,000
4a Quarter 2014-$1,550,000
Total: $19,550,000
(B)Inner Island Project-Cudjoe Regional Wastewater System.The County slug pay
to the FKAA, after receipt of an invoice from FKAA for each quarter, quarterly
advances for the Cudjoe Regional Wastewater System Inner Island project according
to the following schedule:
1"Quarts 2013 -$2,000,000
2vd Quarter 2013 -$2,500,000
3s Quarter 2013 -$4,000,000
4th Quarter 2013 -$6,000,000
1"Quarter 2014-$6,000,000
2"Quarter 2014-$6,000,000
3r°Quarter 2014-$4,000,000
4th Quarter 2014-$4,000,000
1"Quarter 2015-S3,000,000
2vd Quarter 2015-$2,000,000
Total: $39,500,000
(C)Outer Island Project - Cndjoe Regional Wastewater System. The County shall
pay to the FKAA, after receipt of an invoice from FKAA for each quarter, quarterly
advances for the Cudjoe Regional Wastewater System Outer Island project according
to the following schedule:
1°Quarter 2013 -$2,500,000
2n°Quarter 2013 -$5,000,000
3'd Quarter 2013 -$9,000,000
4th Quarter 2013 -$9,000,000
1"Quarter 2014-$9,000,000
2"Quarter 2014-$10,000,000
3n°Quarter 2014-$10,000,000
4i0 Quarter 2014-$10,000,000
1"Quarter 2015 -$9,000,000
2"Quarter 2015-$9,000,000
3nd Quarter 2015 -$4,000,000
4th Quarter 2015-$3,000,000
Total: $89,500,000
(D)Notwithstanding that the advances shown in subsections (A) through (C) above are
established based on the expected cash flow needs for each project,the total quarterly
advance may be applied by FKAA to any of the three Projects. The total quarterly
advances commencing for the first quarter of 2013 follows:
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I"Quarter 2013 -$6,500,000
200 Quarter 2013-$9,500,000
3rd Quarter 2013-$16,000,000
4th Quarter 2013-$18,000,000
'.. 1"Quarter 2014-$18,000,000
2°d Quarter 2014-$19,000,000
3rd Quarter 2014-$16,000,000
4u Quarter 2014-$15,550,000
1"Quarter 2015 -$12,000,000
2nd Quarter 2015-$11,000,000
3rd Quarter 2015-$4,000,000
4d1 Quarter 2015-$3,000,000
Total: $148,550,000
(E)As contracts are entered and/or cost estimates change sufficiently to affect the
feasibility of the scheduled draws, the schedules for subsections (A), (B), and (C)
shall be changed, only in writing approved by both parties. At least once every six
months, administrative staff of the parties shall meet to review the cash flow
schedules and revise the schedules and submit to their respective boards an
amendment to this agreement when necessary.
(F)The COUNTY's performance and obligation to pay under this Agreement is
contingent upon an annual appropriation by the Board of County Commissioners and
the approval of the Board members at the time of contract initiation and its duration.
The COUNTY shall make every effort to obtain all necessary funding from non-ad
valorem sources, and in no event shall this agreement be deemed in any way to be a
pledge of ad valorem taxes.
2. Section 2. PROJECT of the interlocal agreement dated September 20, 2006 (ILA), as
previously amended on April 16,2008,August 3,2009,September 16,2009,April 18,2012,and
August 15,2012,shall be amended to read:
The MI Project shall consist of a plant and method of treatment to Advanced Wastewater
Treatment standards sufficient to serve the needs of the Cudjoe Regional Wastewater
System, including the Inner Islands (Summerland, Cudjoe and Upper Sugarloaf) and
Outer Islands (Big Pine through Ramrod and Lower Sugarloaf), and a collection system
and transmission main to serve the Inner Islands and the Outer Islands.The full Project is
subdivided into the following sub-projects: Treatment Plant Project, Inner Island Project,
and Outer Island Project.
3. Section 3. EXPENDITURE OF FUNDS and shall be amended by adding the following
paragraph:
As of the effective date of this Sixth Amendment, FKAA shall submit all documentation
to support expenditure of funds advanced under Section 1, as amended in this Sixth
Amendment to establish the cash flow of advances identified in Section I, subsections
(A)and(B)as follows:
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Invoices with supporting documentation to substantiate the proper expenditure of
advance funds shall be submitted to the County Engineering department at least
monthly. The properly supported expenditures shall be applied against the cash
advances. The submission must be in a form satisfactory to the Clerk of the
BOCC. If the Engineering Department finds the documentation insufficient, the
Engineering Department shall inform the FKAA in writing of the shortcomings
and seek additional documentation. Upon receipt of documentation that the
Engineering Department deems sufficient, that department shall forward the
documentation to the Clerk to be applied against the advances extended to the
FKAA. For purposes of this paragraph, the FKAA Executive Director and the
County Administrator may designate specific personnel to act on behalf of the
FKAA and Engineering Department to address the accounting for expenditures of
advanced funds. If the Clerk determine that the submission is unacceptable either
of them shall return it to the FKAA in writing with a written description of the
deficiency/ies,copying the Engineering Department on any such writing.
4. Section 4.I ISCAL CONTROLS AND OUARTERLY REPORTS shall be amended to add
the following subsection(A):
(A) In addition to fiscal controls instituted by the FKAA and reports required above,
them shall be a special "accountability" system established for periodic submission and
�'1 review of documentation as the Project progresses, to insure that undue delays in
processing the documentation does not result in lost documentation or Sufficient
documentation that is discovered after the FKAA no longer has a contractual relationship
with the entity from which additional documentation is required. Although the FKAA
Executive Director, or his designee, and the County Administrator,or his designee, may
supplement the accountability system by mutual agreement and directives to their
respective personnel,the system shall involve,at the very least,the following:
(i) Regular submissions, no less frequently than monthly, of all accrued
expenditure documents since the prior submission to be applied against the cumulative
outstanding advances;and
(ii) Monthly meetings between FKAA staff responsible for the accumulation
of documentation and maintenance of the FKAA financial records, the County
Engineering Department, the County budget office, and the Clerk's finance department
personnel, for the purpose of: FKAA delivery of monthly records to County, cursory
review of the current submission, discussion regarding any omissions or errors in the
prior month's submission discovered during due diligence by the County in verifying that
the documentation supports the expenditure claimed.
(iv) Each monthly meeting for purposes of documentation review and
discussion shall have an agenda and shall include review of rejections of prior
submissions, including the prior month's submissions and any outstanding submissions
that have not been accepted and for which additional documentation is still needed to
support application of the expenditure against the advance.
(v) If there are any expenditures more than one year old and still deemed by
the County or its Clerk to be insufficiently documented , the patties shall set up a
special meeting process to address and correct the apparent errors and/or omissions so
that undue delay in resolution does not render it impossible to receive supporting
documentation from the FKAA's contractors.
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5. All other provisions of the ILA dated September 20, 2006 for the
Summerland/CudjoefUpper Sugarloaf Regional Wastewater System, as amended April 16,2008,
August 3, 2009, September 16, 2009, April 18, 2012, and August 15, 2012, not inconsistent
herewith shall remain in full force and effect.
4.This Agreement will take effect on the 17th day of October,2012.
IN WITNESS WHEREOF,the parties hereto have set their hands and seals the day and
year first above written.
(SEAL)
DANNY L.KOLHAGE,CLERK BOARD OF COUNTY COMMISSIONERS
`n/_ Walk
'�I�I OF MONK FLORIDA
Br-9D Wal 1. U By:
Deputy Clerk Mayor/
TIE FLOLA KEYS AQUEDUCT A RITY
By: 4. e
Kirk C. Zue xecutive Director
(SEAL) co -73
--
Clerk
a -
FKAA Board Approval: 10-24-2012
CO
MONROE COUNTY & '`'
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6th Amend Cudioe Regional ILA 6