Item C43 BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: January 21, 2015 Division: PWD/Engineering_
Bulk Item: Yes X No — Department: Wastewater
Staff Contact Person/Phone#: Wilson/ 8797
AGENDA ITEM WORDING: Approval of a 8"'Amendment to the Cudjoe Regional Interlocal
Agreement to increase funds by a total of$15 million to $185 million and updating the advanced
payment schedule. These changes are to become effective January 1, 2015.
ITEM BACKGROUND: Since September 20, 2006, the County and the FKAA have entered into an
interlocal. agreement (ILA) and amendments 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 CudJoe Regional
Wastewater System. There have been a number of amendments to provide added funding as the project
has progressed, been expanded and updated. This amendment provides an updated schedule of the
advanced funding to complete the project.
PREVIOUS RELEVANT BOCC ACTION: On September 20, 2006 the County and FKAA entered
into an ILA for the County to provide funding for administration, planning and construction of a
wastewater collection system. On April 16, 2008 Amendment I expanded the service area and
increased the initial design budget. On August 3, 2009 Amendment 2 expanded the project to include
onsite sewage treatment and disposal systems for areas not in the Master Plan and expanded the area.
On September 16, 2009 Amendment 3 revised the funding, On April 18, 2012 Amendment 4 provided
for an additional advance. On August 15, 2012 Amendment 5 provided an advance covering Oct. —
Dec. 2012. On October 17, 2012 Amendment 6 established a system to insure sufficient documentation
for expenditures to support uninterrupted construction of the project. On October 16, 2013, the
Commission approved FKAA Project #4053-12 Change Order #3 in the amount of$6,011.140.28 for
Outer Island collection & transmission system project changes; FKAA Project #4051-12 Change Order
#3 in the amount of$186,580.36 for changes at the treatment plant; and additional costs for the change
from gravity to grinder in certain geographic areas of the system. On November 20, 2013 the
Commission approved Amendment 7 incorporating the changes approved by the Commissioners on
October 16, 2013.
CONTRACT/AGREEMENT CHANGES: Provides updates to the forecasted funding needs
through 4 1h quarter 2016. Updates the advance payment schedule.
STAFF RECOMMENDATIONS: Approval
TOTAL COST: $15 million INDIRECT COST: N/A—BUDGETED: Yes X No
DIFFERENTIAL OF LOCAL PREFERENCE: —N/A— COST TO COUNTY: S15million
SOURCE OF FUNDS: Fund 312 + assessments REVENUE PRODUCING:Yes— No . X
AMOUNT PER MONTH Year
APPROVED BY: County Atty dMB/Purchasing Risk Management
DOCUMENTATION: Included X Not Required
DISPOSITION: AGENDA ITEM# Revised 7/09
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract with: FKAA Contract#
Effective Date: January 1,2015
Expiration Date: N/A
Contract Purpose/Description:
Eighth amendment to ILA dated 9-20-2006,to update forecasted funding needs for the
Cud'oe Project.
Contract Manager: Kevin Wilson 8797 En ineerin, 16
(Name) (Ext.)
� (Department/Stop#)
for BOCC meeting on 01-21-2015 Agenda Deadline: 01-06-2015
CONTRACT COSTS
Total Dollar Value of Contract: $ 15 million Current.Year Portion: $ 15 million
Budgeted?Yes® No❑ Account.Codes: - - -
Grant: $
County Mat �mm m ch: $ 0 - - - -
ADDITIONAL COSTS
Estimated Ongoing Costs:$ / For: _
Not included in dollar value ahovei e ,mstntenanace utilities, etc.)
g g Yr
" janitorial,salaries etc.
CONTRACT REVIEW
Changes :'Dates Out
Date In Needed - �'" ��e
Division Director Yes❑No
Risk Management MYes❑'No
0 M ./Purchasing { ��� Y ❑
County Attorney { " ' ^' 14Yes❑No 1 -22- loi
Comments:
OMB Form Revised 2/27/01 MCP#2
MONROE COUNTY
PUBLIC WORKS & ENGINEERING DIVISION
DATE: 5 January 2015
TO: BOCC CC: Administrator
s x'
FROM: Kevin G. WilsOn!I
SUBJECT: Cudjoe Sewer Funding ILA Amendment 8
Action Requested: Approval of Amendment#8 to the County-FKAA Interlocal Agreement for
funding of the Cudjoe regional sewer project. Amendment 8 raises the maximum funding to
$183.45 million an increase of$14.9 million from the most recent Amendment#7.
Basis for Recommended Action:
1. The attached summary shows the specific items funded by the Amendment.
2. Amendment#8 updates the spending profile.
3. Amendment#8 replaces fixed quarterly advances with quarterly advances to bring the
advance balance up to the expected spending for the coming quarter.
Background:
The items reflected in the attached summary include actual costs of some previously BOCC
approved items (actual costs of gravity conversions vs. estimated costs; provision of grinders for
non-residential properties, full width road overlays; additional force transmission main); added
unforeseeable costs (road repairs as part of restoration, legal challenges); funding for items that
may be required and/or approved by the BOCC (BPK Storage facility; deep well
design/permitting); and, a contingency fund to be spent only when needed and as change
orders are approved.
For background, the original budget established in 2012 was $147 million. The current ILA
budget forecast a maximum of$183.45 million. The added $36.45 million cost includes $14.9
million for gravity conversions of low pressure areas; additional paving of$11.8 million (in
addition to the $10.4 million in the original base bids); $3.7 million in contingency items which
may be required; and, an estimated $1.95 million in addition construction administration and
legal costs.
EIGHTH AMENDMENT TO
INTERLOCAL AGREEMENT
FOR THE
CtJDJOE REGIONAL WASTEWATER SYSTEM
THIS EIGHTH AMENDMENT TO INTERLOCAL AGREEMENT is entered into
this day of January 2015, 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
S ummerland/Cudj o e/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, 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 Chica 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
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
8th Amendment Cudjoe Regional ILA I
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
WHERFAS, 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 project, 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 May 29, 2014, the County received an updated draw schedule from the
FKAA, showing projected needs through the end of calendar year 2016 which brings the total to
$168,550,000.00; and
WHEREAS, the County has included additional gravity sewer conversions, roadwork,
commercial properties, equipment storage and associated construction management requirements
equaling an additional $14,900,000.00, bringing the revised total for the project to
$183,450,000.00; and
WHEREAS, it is the intention of the County to ensure the FKAA has sufficient funds to
support contractor payments while ensuring the amount of the advance balance ('float") is
regularly reviewed and used efficiently, so as to minimize County costs as it borrows the
necessary sums.
NOW THEREFORE, IN CONSIDERATION of the mutual consideration and
promises set forth below, the parties agree as follows:
1. 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, concerning the draw
schedule is removed and replaced with the following:
(A) The forecasted needs for the Cudjoe project are as follows:
1st quarter 2013 $ 4,786,903
2 nd quarter 2013 $ 5,248,098
3rd quarter 2013 $ 8,100,924
4(h quarter 2013 $ 10,420,141
I St quarter 2014 $ 15,057,579
2 nd quarter 2014 $ 17,097,910
3rd quarter 2014 $ 15,548,446
4th quarter 2014 $ 14,000,000
81h Amendment Cudjoe Regional ILA 2
I quarter 2015 $ 16,000,000
2"'quarter 201 $ 17,000,000
31d quarter 2015 $ 17,000,000
01 quarter 201 $ 15,000,000
I M quarter 2016 $ 12,000,000
21" quarter 2016 $ 8,000,000
3`d cliaarter 2016 $ 5,000,000
Ot quarter 2016 $ 3,190,000
Total $ 183,450,000
Upon presentation of proper invoices for completed work, the County shall advance
sufficient funds to FKAA to bring the advance level to the amount shown for each
subsequent quarter.
2. Subsection (B) 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:
(B) Administrative staff of the parties shall submit to their respective boards an
amendment to this Agreement when necessary.
3. All other provisions of the ILA dated September 20, 2006 for the
Summerland/Cudj oe/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, and
November 20, 2013 not inconsistent herewith shall remain in full force and effect,
4. This Agreement will take effect on theist day of January 2015.
IN WITNESS WHEREOF,the parties hereto have set their hands and seals the day and
year first above written.
(SEAL,)
AMY HEEAVILIN, CLERK BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By: ......_._.........................................._.. _. By: _..
Deputy Clerk Mayor/Chairperson
THE FLORIDA KEYS A4 1.1�C" IX F U]"11�C�:11� 11�"I"Y FKAA Board Approved: 12/17/2014
By: _
l li, Executive llirector
Kirk
1V+IQI�ROE COUNTY ATTORNEY
(SEAL) � ROVED AS IQRM:
c 'YNTIAI L. AL
ASSISTANT COUNTY TTCDR9�E`(
A,SSIST ,N
Clerk
8ih Amendment Cudjoe Regional ILA 3