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Item Bah �14 0 of onroe { BOARD OF COUNTY COMMISSIONERS �� Mayor Heather Carruthers, District 3 ,v ( (,„S Mayor Pro Tem George Neugent, District 2 -Me Florida Keys ) � �` �' �r Danny L. Kolhage, District I David Rice, District 4 "`"�"'` Sylvia J. Murphy, District 5 County Commission Meeting November 14, 2016 Agenda Item Summary #2363 BULK ITEM: No DEPARTMENT: Sustainability TIME APPROXIMATE: STAFF CONTACT: Rhonda Haag (305) 453-8774 9:00 a.m. AGENDA ITEM WORDING: Discussion and direction for the County's Canal Restoration Program, determining if and how to proceed with a plan to restore 300 impaired canals in Monroe County, of which 229 reside in unincorporated Monroe, and how to finance the various costs of implementing such a program. ITEM BACKGROUND: The County first moved forward with a Canal Restoration program in 2012, when the first phase of the Masterplan was approved as a result of a $100,000 grant from FDEP. The second phase of the Masterplan development followed soon after with a $100,000 grant from FDEP. The formal FKNMS Canal Advisory Subcommittee was formed and they began to hold regular public meetings and reviewed the submissions of information provided by AMEC as the Canal Masterplan was developed. Virtually every canal in the county, including all the municipalities, was visited and tested for water quality. Of the 502 canals visited, 300 were considered impaired and are not meeting State water quality standards. In early 2013 the BOCC made the bold move to move forward with $5 million in demonstration projects, and later that year approved the list of the top 15 worst canals in Monroe County. Amec was given approval in 2014 to move forward with the design of the demonstration projects. The original restoration projects were to improve the water quality on 6 canals in Key Largo, Big Pine Key, and Geiger Key. The objective of the pilot program was to test the efficacy of four different types of technologies (or combinations thereof) on the canals (backfilling, organic removal, air curtains, and culverts) and use the improved canals as a predictor for permitting ability, cost and water quality gains to be achieved. A fifth technology, pumping, was also considered, but due to the high cost of electricity to power the pumps, that technology and project in Eden Pines on Big Pine Key was temporarily set aside until additional research into alternative technologies could be conducted. (The report on alternative technologies for Eden Pine was recently provided). EPA provided a $300,000 grant to FIU to conduct pre and post water quality and benthic monitoring, so that an independent scientific evaluation could occur to evaluate the effectiveness of the demonstration projects. FIU has been conducting water quality research for decades in the nearshore waters of the Florida Keys. In January 2015 the first demonstration project began, the culvert connection between Geiger Key Canal 4470 and 4472, for the lump sum price of $199,641.59. Charlie Toppino and Sons were awarded the contract. A 24 inch by 38 inch reinforced concrete elliptical culvert was installed under the road to connect the two dead end canals. The culvert was totally submerged in the canal, to avoid transporting in seaweed from one canal to the other. The work completed 90 days later. The culvert was opened and residents noted an immediate increase in the clarity of the water, and an increase in the numbers of fish in the canal. Unfortunately that spring and summer brought heavy loading of seaweed worldwide, including into these canals, and residents complained and thought the culvert was the cause. The County temporarily plugged the culvert to evaluate the situation. In the meantime, FlU continued to test the waters, and their research showed an immediate improvement in the levels of oxygen when the culvert was opened and an immediate decline when it closed. Later that year, AMEC issued a report, which stated that the submerged culvert was not in any significant way contributing to the seaweed loading in the canals, and offered various options for moving forward. The County selected the option of opening the culvert, and Toppino removed the plug. Again, there was a large increase in the amount of flow through the culvert. Research has indicated a continued increase in the amount of oxygen in the canals. On March 2015 the second project began, the canal 429 Key Largo backfilling project for $1.36 million. A canal that was nearly 39 feet deep had little oxygen but large amounts of noxious hydrogen sulfide gas at its bottom depth. Adventure Environmental was selected as the contractor. Over 890 truckloads of clean fill were brought down from the mainland to fill the canal. The material was placed on a vacant lot and immediately transported by conveyor belt onto a barge in the canal, where it was carefully placed in the canal. A few short weeks later in July 2015 the project was completed, and the canal went from a depth of about 39 feet to 7.5 feet. This new depth allows full tidal flow through the water column. The monitoring results showed immediate oxygen improvement and homeowners were overjoyed at the immediate increase in the numbers of fish, manatee, and other marine life. Seagrass has already begun to grow in the 1 foot layer of sand that was added to the bottom of the canal to promote such growth. This project requires no operations and maintenance as no air curtain is needed. The placement of the canal is such that the prevailing winds do not bring in floating seaweed, as is common with so many other canals. In May 2015 the third and fourth projects began, the removal of organic muck from canal 4266 in Dr's Arm on Big Pine Key and canal 4290 on Avenue J in Big Pine Key. Huge amounts of seaweed had floated in over the past 50 years, choking the canals and causing an accumulation of 5 feet of decaying muck. This decaying organic material had used up the oxygen from the waters, and the residents were left with two of the poorest quality, most noxious smelling canals in the county. Some residents stated they couldn't rent or sell their homes on the canals. JND Thomas was hired for the $1.9 Million project, and the removal of muck by vacuum dredge began. The water filled muck was transported to what looked like a small city of various pieces of dewatering equipment, where it was processed and the solid organic material removed and the clean water returned to the canal. Not only were 108 truckloads of muck removed, but so were numerous loads of junk and debris that had accumulated at the bottom of the canal from the various storms over the years. An air curtain was then installed at the mouth of canal 4266 to keep out the floating seaweed that so heavily plagues the canals in the area. The homeowners original weed gate was reinstalled on canal 4290. After completion of both projects in mid-2016, immediate improvements were noted by the residents. They could once again enjoy sitting on the canal shores. Scientific improvements are slower to come, as nutrients from wastewater remain in the waters. A 5 foot wall of muck also remains at the mouth of the canals and extends into the bay. It is hopeful that these canals will improve over the next two years in water quality, seagrass growth and abundance of sea life. In April 2016 the fifth and sixth projects began, the installation of two air curtains on canals 4266 and 4287. The County entered into a contract with Earth Tech Enterprises, Inc. for $202,384 to remove an existing ineffective weed barrier system and install a new air curtain system on Canal 4266 (that had previously received a muck removal restoration technique), and to install a new air curtain system at Canal 4287 (located between Atlantis Drive and Hollerich Drive in Big Pine Key). Work began in April and concluded in June 2016. Thus far the air curtains have worked well at keeping out the floating seaweed and the water quality and seagrass is being tested by FIU. The amount of time since completion is not yet long enough to offer any scientific conclusion, although as stated, there is no longer floating seagrass choking these two canals. Also in April 2016 the seventh demonstration project began, a second culvert installation in Tropical Bay Estates on Big Pine Key. This project consisted of installing a submerged 60-inch circular reinforced concrete culvert connecting two segments of Canal 4277 located in Tropical Bay Estates, Big Pine Key. Work completed in June 2016, and monitoring efforts are underway. For canal 4277 in Eden Pines, a report has been recently received from AMEC that describes potential technologies that may be considered as alternates to the original pumping technology selected. The property owners on these restored canals have already and will continue to realize benefits as a result of the restoration work, including but not limited to improved water quality, gains in overall appearance of their property, increase in property values, and improved use of the canals for fishing, swimming and other recreational uses. Additional efforts are now needed to allow the County to continue the Canal Restoration Program. Nearly 300 impaired canals remain, 229 in unincorporated Monroe. Additional monitoring is needed to evaluate the technologies used in the original demonstration canals as well as potential new technologies in order to gauge their effectiveness and make cost predictions for the future. Testing of alternate technologies is important to determine if they are successful in restoring impaired canals at lower costs than the traditional technologies. In addition, continued demonstration projects will allow the County to determine how best to meet the requirements set forth in the Florida Keys Reasonable Assurance Document (FKRAD) and thus avoid the imposition of a total maximum daily load (TMDL) program. It has been 3 years since the BOCC first approved the demonstration projects. We are now at the juncture where answers are needed to fundamental questions regarding the future direction of the Canal Restoration Program. Following are seven questions and recommendations staff proposes to the BOCC for consideration: a. Shall Monroe County continue with the canal restoration program? Staff Recommendation: Approval. Staff has developed a conservative, incremental approach for moving forward with the restoration program. b. Shall the Operations and Maintenance costs for the existing completed demonstration projects he funded by an MSBU? Staff Recommendation: Approval. Staff has provided a Resolution for approval directing staff to set up an MSBU and collect special assessments for the O&M costs of the completed demonstration projects. c. Shall Monroe County use FYI Stewardship funds in the amount of $1.5 million for the canal restoration program? Staff Recommendation: Approval. Staff has provided a Resolution for approval directing that the FYI Stewardship funds be used for the canal restoration program. d. Shall Monroe County use the RESTORE funds for the canal restoration program? Staff Recommendation: Approval. Staff has provided a Resolution for approval directing that RESTORE funds be used for the canal restoration program. e. Shall Monroe County staff move forward with the 6 new demonstration projects at an estimated cost of $2 Million, using Stewardship and RESTORE funds? Staff Recommendation: Approval. Staff has presented a Resolution for approval directing staff to move forward with the 6 projects. f. Shall Monroe County evaluate use of an MSTU to fund program management costs estimated at $1 Million to pay for master program planning, effectiveness monitoring, empirical data collection on water connectivity, outreach, program administration, design of alternative technologies and design and construction of potential new restoration projects so that the FKRAD requirements can he met and a TMDL may he avoided? Staff Recommendation: Approval. Staff has presented a Resolution for approval directing staff to continue to research and evaluate moving forward with an MSTU for such purposes. g. Shall Monroe County staff continue with program planning so that an evaluation can he further developed for a more accurate cost of the entire program, currently estimated at $300M-$700M, and to develop methods for overall costs savings, effective restoration technologies, more accurate site and technology data, and to continue to apply for grants to help pay for a portion of such costs? Staff Recommendation: Approval. Staff has developed a conservative, incremental approach for moving forward with the restoration program. PREVIOUS RELEVANT BOCC ACTION: 03-21-12: Approval of a $100,000 Grant from FDEP to fund Phase 1 of the Canal Management Master Plan and also authorized execution of a task order with AMEC under the on -call professional engineering services contract to develop Phase 1. 09-19-12: Approval of a $100,000 EPA grant that funded Phase 2 of the Canal Master Plan. 03-20-13: Approval of $5 million for the canal restoration demonstration projects. 10-16-13: Approval of the top 15 canals, selection of 6 canals for the demonstration projects, and a 90 day limitation on the homeowner approval period. 05-21-14: Approval of a contract with AMEC to design the demonstration Canals. 10-10-14: Approval to enter into a contract for $199,641.59 with Charley Toppino and Sons, Inc. for the construction and installation of a culvert on Canal 4472 on Geiger Key, the 3rd ranked canal project in the Canal Management Master Plan. $78,291.00 is being funded through DEP Grant S0273. Approval requested to have the County fund the balance of the $121,350.59 construction cost 01-21-15: Approval to enter into an Agreement with Adventure Environmental, Inc. for $1,360,000.00 for construction of the canal backfilling demonstration project at Canal 429, Key Largo. 04-15-15: Approval to enter into a contract with JND Thomas for removing organic muck material from Canal 4266 in Doctor's Arm Big Pine Key and Canal 4290 on Avenue J in Big Pine Key, utilizing vacuum dredging, in an amount not to exceed $2,031,762. 01-20-16: Approval to enter into a contract with Earth Tech Enterprises, Inc. for $202,384 to remove an existing ineffective weed barrier system and install a new air curtain system on Canal 4266 (located in Doctor's Arm Big Pine Key); to demolish portions of an existing ineffective weed barrier and install a new air curtain system at on Canal 4287 (located between Atlantis Drive and Hollerich Drive in Big Pine Key). 01-20-16: Approval to enter into a contract with Douglas N. Higgins, Inc. for $423,957.00 for installation of a 60-inch circular concrete reinforced pipe culvert in order to increase the natural tidal flushing on canal 4277 in Tropical Bay Estates, Big Pine Key. 04-11-16: Canal BOCC Workshop 41 to discuss the need for a Canal Restoration Program, Regulatory Requirements, preliminary financing strategies, and need for a long term implementation and funding plan. 10-19-16: Discussed the options to 1) Stop all canal restoration efforts and terminate the program. Do not fund any Operations and Maintenance costs on completed canals or canals in -process of restoration and 2) Move forward with a discussion at a minimum of the financing options for the Demonstration Projects Operations and Maintenance costs. To pursue Option 2, it is necessary for staff to move forward a resolution that would be heard at the December 2016 BOCC regular meeting. 11-22-16: Authorize entering into a contract with Adventure Environmental, Inc. for $1,524,040 for the C83 canal restoration project in Key Largo, which includes muck removal, backfilling, and air curtain installation. CONTRACT/AGREEMENT CHANGES: Not Applicable STAFF RECOMMENDATION: Continue to move forward. DOCUMENTATION: FINANCIAL IMPACT: Effective Date: Not Applicable Expiration Date: Not Applicable REVIEWED BY: Rhonda Haag Completed 11/07/2016 10:00 AM Pedro Mercado Completed 11/07/2016 12:22 PM Budget and Finance Completed 11/07/2016 1:09 PM Maria Slavik Completed 11/07/2016 1:13 PM Kathy Peters Completed 11/07/2016 7:12 PM Board of County Commissioners Pending 11/14/2016 10:00 AM 11/11/2016 Discussion and direction for the County's Canal Restoration Program ■ Determining if and how to proceed with a plan to restore 300 impaired canals in Monroe County, of which 229 reside in unincorporated Monroe County, and How to finance the various costs of implementing such a program. 11/11/2016 Projects Committed In Process • Design/Permit, Homeowner Approvals. Construction Inspections $ 1,271,787 • Backfilling Project - Sexton Cove, Key Largo $ 1,360,000 • Culvert Installation - Geiger Mobile Homes, Geiger Key $ 121,000 ($100,000 additional paid by DEP) • Organic Removal - Drs. Arm & Ave J, Big Pine Key $ 1,901.804 • Culvert Installation - Tropical Bay, Big Pine Key (BPK) $ 373,957 (plus $50,000 additional paid by DEP) • Air Curtains w/2 years O&M - Drs. Arm & Atlantic Estates, BPK $ 303,084 • Monroe County Permitting Fees $ 33,445 • Organic Removal/Backfilling/Air Curtain/O&M - Rock Harbor, KL $1,559,040 • Air Curtain - Ave J, BPK ($50,000 additional to be paid by DEP) $ 50,000 • Master Plan Additional Assessment (plus $110,582 from EPA grant), $ 177029 • Canal Funding Mechanism Development , -,, $ 5,000 $5,365,078 $1,631,069 TOTAL COMMITTED AND IN PROCESS: $6,996,147 BUDGET REMAINING: $3,853 2 11/11/2016 1 . Culverts ■ The natural tidal flow immediately improved water clarity and increased fish populations Geiger Key #472 After Culvert Installation Geiger Key #472 Before Culvert Ph— po. by FN 11/11/2016 2. Backfilling ■ Return of sea life, revegetation of canal bottom Homeowner Quotes From Key Largo Backfilling Project: a. "The canal is coming alive! We've been seeing mullet, snapper, jacks, barracuda, manatees over the past month. Today another milestone; I heard a commotion in the canal and looked out to see a school of snapper chasing a shrimp. The shrimp was jumping for all it's worth trying to getaway. After four jumps a snapper finally ate it. Then a few minutes later I saw two more shrimp jumping out of the water trying to avoid the snapper. All this happened in broad daylight about noon. " b. "Today I snorkeled in the canal, and am happy to report that I could see the bottom, all over!! AND - fish. All sizes of snapper. Schools of finger mullet. Barracuda. " c. 'We have noticed lots of fish, big and small in our canal. The Manatees seem to like the more shallow water, 6 of them show up just about every day_" Canal #29 Before Backfilling 3. Organic Removal and Air Curtains ■ Immediate improvement in elimination of hydrogen sulfide odor and improved water clarity • Significant reduction in seaweed entrapment in canal ■ Removal of years of accumulated trash and debris Canal #29 After Backfilling Ph— W — by RU Homeowner Quotes From Doctors Arm Big Pine Key Organic Removal Project: a. 'We could not be more pleased with the results of the project. The canal, which was rated as one of the worst in the Keys, is now clean and has a new sand bottom which will encourage marine life growth and habitation. The canal cleaning results have been excellent, and restoration work on my lot was performed as promised." b. 'As owners of property on this canal since 1985, we are pleased to observe and report the significant improvement in both the water quality and quality of life that have occurred as a result of the completion of this project. I'm here to report, from someone who lives on this canal, that it worked, and it worked well. The air is no longer fouled with gasses from the canal, and we were able to sit outside, breath clearly, and even watch fish swim." 4 11/11/2016 Environment and Recreation a) Non -impaired "qood" canals can be used for recreation b) Fishable and swimmable 2. Tourist Economy a) Tourists want clean water on rental housinq b) Tourists want to use nearshore waters for water sports 3. Home Values a) Poor water quality affects home values b) Some homes in Biq Pine could not be rented or sold due to foul odor of canals 4. Health a) Canals that don't flush and have rotting seaweed may contain bacteria. viruses and noxious hydrogen sulfide and methane gases . The coral reef tract in the Florida Keys is the third largest barrier reef in the world, and the only livinq barrier reef adjacent to continental US 2. More than two million individuals per vear visit the Florida Kevs to enjoy water related activities, includinq snorkelinq, divinq, and fishing 3. These water related activities support 70% of tourism in the Florida Keys 4. The Florida Keys reef environment qenerates more than 70,000 jobs and $6 billion dollars in economic I activitv annually 61 11/11/2016 J. The Keys are considered the "fishinq capital of the world," generatinq hundreds of world records and billions of dollars of economic impact 14 7. Coral reef areas and seagrass beds provide critical nursery and feedinq habitat for many commercially and recreationally valuable fish and shellfish species, such as qrouper, snapper, stone crab, and spiny lobster Coral reef and seaqrass health is directlV linked to near shore marine water quality• Both corals and seagrasses thrive in areas where water is clear, low in nutrients. and hiqh in dissolved oxygen; }� lrr+er Keys -accumulated seaweed Sun nerland •trapped seaweed 2/3 of the canals have either "Poor" or "Fair" Water Quality Middle Keys - trapped seaweed Lack of flushing R 11/11/2016 Key Colony Beach Key Haven Currently only 1/3 of the canals have "Good" Water Quality Duck Key Conch Key Sugar Loaf . Demonstration Projects Operations & Maintenance ($86,960/year for the initial 7 projects) 2. Engineerinq services to continue master program planning efforts provide match for program and project grants ($350,000/vear) 3. Program Administration ($100,000) 4. Community Outreach ($30,000) 5. Effectiveness monitoring of existinq restorations for water qualitv and sea life ($100,000 - $300,000/year, will increase with more projects. Current EPA monitorinq grant funds run out in FY16) 6. Construction and testinq of alternative technologies that may reduce the costs of restoration ($30,000 - $350,000/year) %. Some number of new construction projects so that Reasonable Assurance requirements can be met and TMDL avoided • May include new projects potentially funded by homeowners, qrant match, Stewardshin RFSTORF ACT, and/or other sources (amount to be determined) 7 11/11/2016 13-58 privately owned,.., t - parcels per canal Air Organic Culvert Back- Culvert Air Curtain Removal fill Cleanout Curtain O&M 29 Sexton Cove Key Largo X $ 0 83 Rock Harbor Key Largo X X X $20,840 266 Doctors Arm Big Pine X X $20,840 277 Tropical Bay Big Pine X $1,800 287 Atlantic Estates Big Pine X $20,840 290 The Avenues Big Pine X X $20,840 472 Geiger Key Mobile Home X $1,800 Total Annual Estimated O&M Costs for Initial 7 Demonstration Projects: $86,960 Based upon estimated activities for 10 years Annual electric $6,000. $10,500 annual 6 maintenance visits. plus $4,340 annualized equipment replacement Costs based upon current demonstration contract rates and should be able to be reduced with economies of scale. Costs do not include administrative costs or effectiveness monitoring. New projects for Year 1 O&M will also incur additional maintenance of $7.000 per year. 1.1 11/11/2016 29 Sexton Cove Key Larg Backfillin $1,300,00 $0 83 Rock Harbor Key Largo ombinatio $1,500,00 $20,84 Air Curtain/Organic Removal/Backfilling (new) 266 Doctors Arm Big Pine (BPK) Air $1,300,000 $20,840 Curtain and Organic Removal BPn 277 Tropical Bay Estate�;� 287 Atlantic Estates BP A 290 The Avenues Big Pine Air Curtain $800,640 $20,840 and Organic Removal 472 Geiger Key Mobile Homes Culvert $199,000 $1,800 Total Annual Cost Year 3-10 for Initial 7 Demonstration Projects: $ 86,960 ' Based upon estimated activities for 10 years including air curtain equipment replacement. Annual electric $6,000, $10,500 annual 6 maintenance visits, $4,340 annualized equipment replacement. Costs based upon current demonstration contract rates and should be able to be reduced. Costs do not include administrative costs or effectiveness monitoring. New projects for Year 1 O&M will also incur additional maintenance of $7,000/year. 9 11/11/2016 How the program is implemented — economies of scale will lower cost (multiple projects at one time, group by technique and area) 2. Collection of additional site assessment data a) Corinq data may reduce organic thickness estimates b) New 2013 DEP Dissolved Oxygen standard and additional Reasonable Assurance assessment may chanqe # of impaired canals 3. Regulatory Mandates a) Current Comp Plan requires backfillinq after organic removal 4. Demonstration Project Effectiveness a) Determine which technoloqies are most effective b) Determine if combination technoloqies are needed 5. New Alternative Technologies - may siqnificantiv reduce costs a) Ability to permit 6. Operations and Maintenance costs - may reduce with economies of scale . Stop the canal restoration program, close out all projects ■ No O&M to be provided to existing projects 2. Fund only the O&M of the existing demonstration projects 3. Continue forward with program planning and matching funds for grants and RESTORE and creation of an MSTU to fund $1 million annually 4. Continue with some new restorations to be funded by the RESTORE and Stewardship Acts, grants and/or homeowner funds 5. Master planning for the entire canal restoration program to develop more accurate costs and an implementation plan 10 11 /11 /2016 2. Shall the Operations and Maintenance costs for the existing completed demonstration projects be funded by an MSBU? Staff Recommendation: Approval. Staff has provided a Resolution for approval directing staff to set up an MSBU and collect special assessments for the O&M costs of the completed demonstration projects. 11 11/11/2016 3. Shall Monroe County use FY17 Stewardship funds in the amount of $1.5 Million for the canal restoration program? Staff Recommendation: Approval. Staff has provided a Resolution for approval directing that the FYI Stewardship funds be used for the canal restoration program. 12 11/11/2016 J. Shall Monroe County staff move forward with the 6 new demonstration projects (4 in -situ aeration, 1 backfill, and the C83 combination) at an estimated cost of $2 Million, using Stewardship and RESTORE funds? Staff Recommendation: Approval. Staff has presented a Resolution for approval directing staff to move forward with the 6 projects. 6. Shall Monroe County evaluate use of an MSTU to fund program management costs estimated at $1 Million annually to pay for master program planning, effectiveness monitoring, data collection, outreach, program administration, design of alternative technologies and design and construction of potential new restoration projects so that the FKRAD requirements can be met and a TMDL may be avoided? Staff Recommendation: Approval. Staff has presented a Resolution for approval directing staff to continue to research and evaluate moving forward with an MSTU for such purposes. 13 11/11/2016 7. Shall Monroe County staff continue with program planning so that an evaluation can be further developed for a more accurate cost of the entire program, currently estimated at $300 Million - $700 Million, and to develop methods for overall cost savings, effective restoration technologies, more accurate site and technology data, and to continue to apply for grants to help pay for a portion of such costs? Staff Recommendation: Approval. Additional research and data must be developed before a comprehensive program implementation plan and the associated costs of such a plan can be presented and funding methods identified or recommended. 14