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Item K1County of Monroe <r BOARD OF COUNTY COMMISSIONERS � Mayor David Rice, District 4 IleOI1da Keys ��x t t 0. Mayor Pro Tem Sylvia J. Murphy, District 5 Danny L. Kolhage, District I P f,< George Neugent, District 2 a Heather Carruthers, District 3 County Commission Meeting April 19, 2018 Agenda Item Number: K.1 Agenda Item Summary #4053 BULK ITEM: Yes DEPARTMENT: Waste Water TIME APPROXIMATE: STAFF CONTACT: Kevin Wilson (305) 292 -4441 no AGENDA ITEM WORDING: Approval of 11th amendment to the Cudjoe regional wastewater system ILA with FKAA increasing the amount of the ILA project amount by $7.2 million to a total of $203.7 million ITEM BACKGROUND: At its March 2018 meeting the BOCC reviewed some additional costs of the project as detailed in the FKAA request letter dated 6 FEB 2018. This is the ILA amendment authorizing the increase in project authorization to cover those projected additional costs. At the same meeting, the BOCC authorized staff to request an increase in the Clean Water State Revolving Fund (SRF) loan in the same amount to provide the funds for these items. PREVIOUS RELEVANT BOCC ACTION: At its March regular meeting the BOCC directed staff to proceed with the amendment and to request an increase in the SRF authorization. There have been 10 previous amendments to the ILA which was first approved on 20 SEP 2018. CONTRACT /AGREEMENT CHANGES: Amendment 11 to ILA STAFF RECOMMENDATION: Approval DOCUMENTATION: ILA 11th Amendment -FKAA signed FINANCIAL IMPACT: Effective Date: 19 April 2018 Expiration Date: N/A Total Dollar Value of Contract: $203.7 million Total Cost to County: $203.7 million Current Year Portion: Budgeted: Yes Source of Funds: Infrastructure sales tax; user assessments; grants; CPI: N/A Indirect Costs: Staff time Estimated Ongoing Costs Not Included in above dollar amounts: N/A Revenue Producing: No Grant: County Match: Insurance Required: N/A Additional Details: If yes, amount: Increases debt service in FY19 REVIEWED BY: Kevin Wilson Cynthia Hall Budget and Finance Kathy Peters Board of County Commissioners Completed 03/31/2018 11:41 AM Completed 04/02/2018 1:40 PM Completed 04/02/2018 2:00 PM Completed 04/03/2018 1:33 PM Pending 04/19/2018 9:00 AM ELEVENTH AMENDMENT TOINTERLOCAL AGREEMENT FOR THE ..STEWATER SYSTE] THIS ELEVENTH AMENDMENT TO INTERLOCAL AGREEMENT is entered into this 28th day of March 2018, pursuant to Sec. 163.01, F.S-, 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/Cudjoe/Upper 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 $7.5 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, Cl.JDJOE 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 Chica Key; and WHEREAS, on September 16, 2009, the parties amended the agreement, through a document titled "SECOND AMENDMENT TO INTERLOCAI., AGREEMENT FOR THE (JJDJOE 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 WHEREAS, on August 15, 2012, the BOCC approved a Fifth Amendment in order to increase funding by authorizing payment of an advance to the FKAA, no later than September 15, 2012, for the sum of nine hundred fifty thousand dollars ($950,000) for planning, design and contracting for the Cudjoe Regional Wastewater System project, bring the total advance paid for the third and fourth quarters of 2012 to one million four hundred fifty thousand dollars ($1,450,000) and leaving remaining projected costs at one hundred forty-eight million five hundred fifty thousand dollars ($148,550,000); and WHEREAS, on October 17, 2012, the BOCC approved a Sixth Amendment to the ILA, which added sub-sections (A), (B), (C) and (D) to Section I of the ILA in order to specify a schedule for quarterly advance payments for the treatment plant, inner island prctiect, and outer island project beginning with the first quarter of 2013 and ending with the fourth quarter of 2015; and WHEREAS, on November 20, 2013, the Board of County Commissioners approved a Seventh Amendment to the ILA, in order to incorporate changes approved by the Board of County Commissioners at its October 16, 2013 meeting, specifically, FKAA Project # 4053-12 Change Order #3 for the Outer Island Collection & Transmission System, FKAA Project #4051- 12 Change Order #3 for the Cudjoe Regional Treatment Plant, and a design change from grinder pumps to gravity system for certain designated properties within the Cudjoe Regional Wastewater System Inner Islands and Outer; and WHEREAS, on January 21, 2015, the Board of County Commissioners approved an Eighth Amendment to the ILA in order to modify the draw schedule from the FKAA, to address revised projected needs through the end of calendar year 2016; and WHEREAS, on April 15, 2015, the Board of County Commissioners approved a Ninth Amendment to the ILA, in order to add $7.1 million for design and construction of a deep injection well at the Cudjoe Regional Wastewater Treatment Plant; and WHEREAS, on June 10, 2015, the Board of County Commissioners approved expansion of the Cudjoe Regional Wastewater System to include forty-two (42) additional properties on No Name Key, fifty-seven (57) additional properties on Middle and Big Torches, and 35 other additional properties throughout the CRWS, requiring an increase in construction cost of $3.446 million; and WHEREAS, on November 17, 2015, the Board of County Commissioners approved a policy whereby properties whose connections were not included in the project's design should have connections provided to their property line at project expense; and WHEREAS, the cost for these additional properties through June 30, 2015 was $2.51 million which is included within this amendment; and WHEREAS, on January 20, 2016, the Board of County Commissioners approved a Tenth Amendment to the ILA, in order to revise the advance schedule and add $5.95 million of additional funding for project changes authorized by the BOCC, namely, addition of expansion areas and adoption of a policy to provide connection points for newly developed properties; and WHEREAS, FKAA is projecting an additional $7.167 million in additional expenses as the Cudjoe Regional project nears completion, for construction at a Big Pine Key building used for wastewater staff, additional charges for telemetry (electronic signals, sent for monitoring from collection and transmission lines, pumps and lift stations to the system) not included in the original design or construction estimate; additional properties added into the system in the Torches and No Name Key and Breezy Pines RV park; and $1.2 million for future design and construction of an additional "relief' pipeline, required as a result of additional properties added into the system. I I d ' Amendment Cudjoe Regional ILA 2 NOW THEREFORE, IN CONSIDERATION of the mutual consideration and premises set forth Wow, the parties agree as follows: Sub-section (A) in Section 1, COUNTY FUNDING, of the Summerland/Cudjoe/Upper Sugarloaf Regional Wastewater System interlocal agreement dated September 20, 2006 (ILA), as amended, is removed and replaced with the following: (A) The remaining forecasted needs for the Cudjoe project are as follows. Thru 4 th Qtr 2017 $193,204,7 i Quarter 2018 $ 2,685,0 2 nd Quarter 2018 $ 2,680,00 P Quarter 2018 $ 2,100,0 i t 4 th Quarter 2018 $ 1150010 1 1" Quarter 2:019 $ 6 1,531,8 Total $203,701,6 0 The County shall advance sufficient funds to FKAA to ensure that the advance level is sufficient to cover the amount shown for each subsequent quarter and that the FKAA has sufficient cash on hand to cover expected expenditures. The amount advanced shall be determined by the County Administrator and the Executive Director or their designees for a given quarter. The advance payment shall be made on the first day of the subject calendar quarter or as may be mutually agreed by the Executive Director and the County Administrator or their respective designees. Should FKAA payment requirements exceed the forecast levels, the County Administrator or his designee and Executive Director or designee may agree to modify the quarterly advance totals shown above to meet revised forecasted needs, however, the total will not be revised without BOCC approval. 2. All other provisions of the ILA dated September 20, 2006 for the Summerland/Cudjoe/Upper Sugarloaf Regional Wastewater System, as amended April 16, 2008, August 3, 2009, September 16, 2009, April 18, 2012, August 15, 2012, October 17, 2012, November 20, 2013, April 15, 2015, and January 20 2016 not inconsistent herewith shall remain in full force and effect. 11"' Amendment CudJoe Regional ILA 3 IN WITNESS WHEREOF, the parties hereto have set their hands and scals the day and year f above written. rki - I X ZAL Y I t By: Deputy Clerk Clerk By: Mayor/Chairperson THE FLORIDA KEYS AQUEDUCT AUTHORITY By: ' — CLZuu�;h, — ix�cutive & o I P Amendment Cudjoe Regional ILA 4