Item T04
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: July 18, 2002
Division:County Administrator/Growth Management
Bulk Item: Yes
No X
Department: N/ A
AGENDA ITEM WORDING:
Approval of a resolution supporting a conceptual agreement proposed by Key West Resort Utilities,
Inc., to provide wastewater services to south Stock Island and directing the County Attorney to prepare
a contract and authorize the Mayor to execute same subject to legal, financial, and risk management
reVIew.
ITEM BACKGROUND:
The Key West Resort Utilities, Inc. presented a proposal on June 5, 2002, to the Board of County
Commissioners to provide wastewater services from its existing wastewater treatment facility on Stock
Island to serve south Stock Island. At the BOCC's regularly scheduled June 20, 2002, meeting,
Commissioner Nelson provided Commissioners and staff with a proposal modifying the one provided
previously by Key West Resort Utilities, Inc. The BOCC directed the staff to meet with Key West
Utilities, Inc. and come back to the Board with recommendations in July.
PREVIOUS RELEVANT BOCC ACTION:
On June 20,2002, the BOCC directed staff to come back with recommendations on Key West Resort
Utilities, Inc. proposal.
CONTRACT/AGREEMENT CHANGES:
N/A
ST AFF RECOMMENDATIONS:
Approval
TOT AL COST:
N/A
BUDGETED: Yes: N/A No:
COST TO COUNTY: N/ A
REVENUE PRODUCING: Yes
No X AMOUNT PER MONTH
Year
DIVISION DIRECTOR APPROVAL:
isk Management _
APPROVED BY: County Atty ~ OMB/Purchasing
rry, AICP
Not Required_
DOCUMENTATION:
Included
To Follow X
AGENDA ITEM # 7Y'
DISPOSITION:
AGENDA ITEM WITH LATE DOCUMENTATION
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AGENDA ITEM NUMBER
SOUTH STOCK ISLAND
Key West Resort Utilities has proposed to extend its collection system through
south Stock Island. In order to do that, the Public Service Commission regulated
company is seeking an agreement with Monroe County in reference to funding that could
be utilized to achieve the goal. Rather than contribute directly to the construction costs
identified, as a result of a private bid process by Key West Resort Utilities, which may
not be in compliance with Florida Law, the County would agree to assist in the
reservation of plant capacity by providing an amount of $2,700 per equivalent dwelling
uni t.
As instructed, the staff has negotiated with Key West Resort Utilities and below is
a conceptual outline of the proposal. Following the conceptual outline are the questions
that the Board of County Commissioners needs to consider. If the BOCC approves the
outline, the staff will work to prepare a detailed contract hopefully for an addition to the
July 24,2002 budget meeting.
SUGGESTED CONCEPTUAL OUTLINE
1. Monroe County agrees to pay Key West Resort Utilities $4.6 million for reservation
of plant capacity for south Stock Island expansion.
2. Key West Resort Utilities agrees to build wastewater collection infrastructure for
south Stock Island within 16 months of contract date.
3. Since the purchased reserved plant capacity is not useful to Monroe County (or
citizens) until the collection infrastructure is built, Monroe County will make progress
payments to Key West Resort Utilities out of the agreed upon $4.6 million as the
infrastructure is built.
4. Once the infrastructure is completed, Key West Resort Utilities will pay to Monroe
County $2,100 collected from new customers connecting to the system. Those funds
~4
would return to the 304 account. Key West Resort Utilities will retain $600 of each
fee to upgrade the plant to advanced wastewater treatment.
In order for this proposal to move forward, the Board of County Commissioners
needs to vote to authorize the staff to prepare a contract based upon the conceptual
outline.
In addition, the Board of County Commissioners must determine the source of
funding for the $4.6 million. At present, during fiscal year 2002, the infrastructure sales
tax fund (304) has approximately $1.8 million remaining in the wastewater line. As of
October 1, 2002 (fiscal year 2003), an additional $2 million is available. As of October
1, 2003 (fiscal year 2004), there is an additional $2 million available in the wastewater
line. In the past, these sums have been considered to be for supporting a project in the
Lower Keys, including Big Coppitt, Rockland, and Geiger Key.
In order to sign the contract when it is prepared, the BOCC will need to have
identified funding. There will be a discussion on today's agenda with the County's
financial advisors concerning the possibility of capital financing for a variety of projects.
If the BOCC agrees with that approach, that may free up some funds for wastewater a
few months into the future.