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Item T1 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 18 September 2002 Division: Growth Management Bulk Item: Yes No x Department" Marine Resources AGENDA ITEM WORDING: Update briefing on wastewater management projects and issues and the Florida Keys Aqueduct Authority. ITEM BACKGROUND: The County Administrator informed the BOCC at its June 20, 2002, regular meeting, that staff will provide briefing updates on the status of wastewater projects and issues to the BOCC on at least a monthly basis. In addition to an oral briefing, the staff will prepare a written update report intended for insertion in the Wastewater Project Book provided to the BOCC at the June meeting. A staff representative from the FKAA has also been asked to attend the meeting to provide the Commission with further updates on their projects, PREVIOUS RELEVANT BOCC ACTION: NA CONTRACT/AGREEMENT CHANGES: NA ST AFF RECOMMENDATIONS; NA TOTAL COST: NA BUDGETED: Yes No COST TO COUNTY: NA REVENUE PRODUCING: Yes No NA AMOUNT Per Month Year DOCUMENTATION: Included OMB/Purchasi~ NA .' '\ ..' ... r 1 . \1' Timothy MC~Y, Di~ctor of Growth Managem nt I To Follow Not Required --1L- Risk Management APPROVED BY: County Atty NA DIVISION DIRECTOR APPROVAL: DISPOSITION: AGENDA ITEM NO.: \\ BC020960 08/27/0212:24 PM Memorandum DeDartment of Marine Resources 2798 Overseas Highway, Suite 420 Marathon, Florida 33050 Voice: (305) 289 2507 FAX: (305) 289 2536 Email: garrettg@mail.state.tl.us or garrettgeo(whotmai I. com Board of County Commissioners Mayor Charles "Sonny" McCoy. Dist. 3 Mayor Pro Tern Dixie Spehar, Dist. I Commissioner George Neugent, Dist. 2 Commissioner Nora Williams, Dist. 4 Commissioner Murray Nelson, Dist. 5 DATE: 18 September, 2002 TO: Board of County Commissioners FROM: ~es L. Roberts, County AdminiS~ SUBJECT: Staff Update Report (# 04-02) on Wastewater Master Plan Implementation Issues AVAILABLE FUNDS FOR WASTEWATER Update on FEMA Funds: The County staff continues to work with FEMA and the FKAA to complete the FEMA projects at Key Largo, Conch Key and Baypoint. Receipt of FEMA funds depends on the completion of a series of stepwise commitments leading from public hearings through construction design and ultimately construction, FEMA also indicates that the local share of the project must be committed and contracted by September 2003. At this point, the first in a series of public hearings will take place concerning all three County FEMA projects on the 8th and 9th of October 2002, FEMA through the State Conflict Resolution Consortium, will host the meetings on the 8th at the Key Largo Library starting at 5 :00 and at the Marathon Government Center at the same time on the 9th, FEMA will present the Programmatic Environmental Assessment (EA) for the entire suite of FEMA Unmet Needs projects (including Islamorada). The public will be allowed to comment on the general scope of the FEMA project collectively and the general programmatic EA, they will not be allowed to speak to the details of any project individually. Preceding the meeting, staff will be meeting with FEMA, the Consortium, and the FKAA to complete a "dry run" on the proceedings on the 8th and 9th. Next in the progression of requirements will be Supplemental Environmental Assessment meetings which will allow the public to speak to specific issues concerning individual FEMA projects. In tandem with the FEMA public hearings, the FKAA continues to develop design criteria documents in preparation for putting each of these projects out to bid for design and construction. BC020961 09/12/027:49 AM T-I Update on FDEP State funding: State funding, in the amount of $ 11.8 million, was broken into three categories and may fund either wastewater or stormwater projects, First, $1.66 million was provided to qualifying projects in Key Largo, Islamorada, Marathon, and Key West. Second, $200,000 was provided both Layton and Key Colony Beach, Third, the remaining funds ($4.76 million) will be provided to qualifying projects in hotspot areas as identified in the Wastewater Master Plan. The County and municipalities have agreed in joint resolution to the equitable split of these funds. The County's share will be $1.112 million, Then, if there are any funds left over, additional projects will be considered in an additional round of funding, Initial project proposals for the first category of funds noted above were due to the Florida Department of Environmental Protection (FDEP) on August 19, 2002. Staff provided information to FDEP documenting projects at Key Largo Park ($1.66 M), North Key Largo Utility (NKLU - Ocean Reef Club) ($987,586), and Key West Resort Utility (KWRU) ($134,822), Comments on the project proposals have been made by FDEP for the Key Largo Park project and have been responded to by FKAA consulting engineers. Staff awaits comments from FDEP on the NKLU and KWRU projects. Recall from the August report, that there is a question as to whether the State funds may be utilized for private utility projects. This question has not been answered to date and must be before the projects may move forward, However, Representative Sorensen has addressed this matter in a letter to FDEP indicating that it was not his intent in the legislation, which provides the funds, to exclude private utilities from potential receipt of grant dollars. Staff will provide an answer to this question by the next BOCC meeting in October. Finally, at its August meeting the County agreed to provided up to $200,000 to reimburse the FKAA for services from its consulting engineer in preparation of documents for the state funding projects, notably Key Largo Park, Funds will be provided to the FKAA on a reimbursement basis. Remaining Cesspool Elimination Funds: In a separate report prepared for the September Board meeting, a complete assessment of the availability of the cesspit replacement funds is provided with recommendations for its redistribution to other projects, However, at a minimum $1,095,394 of state funds and $792,049 of County funds are projected to remain for redistribution. These figures are predicated on an assumption that 36 on-site system permits that are currently still in the system will apply for and receive grant funds for cesspit replacement. If this is not the case, then the availability of cesspit replacement funds for redistribution will be higher than projected. The Board is being requested to make a decision on the staff recommendations for redistribution of State and County funds for cesspit replacement. The State (both FDEP and FDCA) indicate that they would be amenable to any reasonable plan for this redistribution process and have already reviewed the proposal to the Board, Time extensions will be required for the FDCA grants. The FDEP grant, if any FDEP funds remain, must be spent by July 2003. 2 Issues Addressed! Actions Taken o Approval by the BOCC to provide funds to the FKAA in the amount of $200,000 to offset costs of preliminary engineering efforts to complete requirements to receive State funds Issues That Need to be Addressed o Need to adopt financial assistance criteria for economically disadvantaged households throughout the County. Recommended BOCC Action: o Consideration of staff recommendations for use of remaining FDEP, FDCA, and County funds remaining from cesspit replacement program. o Consideration of staff recommendations on financial assistance programs for wastewater projects, particularly for an investor-owned sewer system. o Consideration of additional recommendations for financial assistance programs. Significant Future Milestones/Actions: o Decision on redistribution of remaining FDEP, FDCA, and County funds for cesspit replacement. [Target Date: September Commission meeting} o Decision on financial assistance programs as recommended by staff. [Target Date: November Commission meeting} WASTEWATER GOVERNANCE Two issues now appear under the wastewater governance category of the monthly report: }, the continuing relationship and agreements between the County and the FKAA, and 2. the issue of transition agreements between the County and the new utility in Key Largo. Update: Currently County and FKAA staff are working well together, though more frequent communication is recommended, No work has been done to complete or revise current operating agreement between the two agencies. Staff believes that a new operating agreement will be ready for the November BOCC meeting, Staff continues to make preparations for the transition of the Key Largo FEMA project at Key Largo Trailer Village and the state funded project at Key Largo Park. It is the goal of each agency to complete all requirements for both projects up to and through the development of a Request for Statements of Qualifications (RSQ) for a designlbuild wastewater facility. The FKAA will provide the documents to the newly elected Board of the Key Largo Wastewater 3 Utility as the RSQs are completed and the new Board is prepared to receive them and take action. Staff remains concerned that, with the time deadlines facing the new Key Largo Board for both the FEMA and State projects, the new Wastewater Utility Board will have difficulty meeting these appointed deadlines. Staff believes that the County and the FKAA should stand ready to assist if requested, An additional concern is that the new Utility Board may not have the financial wherewithal to commit to and complete the two wastewater projects in Key Largo if the voters do not elect to provide funds through the Utility millage referendum. Issues That Need to be Addressed: o Need to prepare and approve new agreements between the FKAA and Monroe County spelling out the roles and responsibilities of the two organizations for each party for the provision of wastewater services and financial commitment and underwriting by the County. Recommended BOCC Action: o Consideration of new agreement(s) with the FKAA establishing roles and repsonasibilities for wastewater services in unincorporated Monroe County prepared by the FKAA and County staffs, Significant Future Milestones/Actions: o Execution of new agreement(s) with the FKAA spelling out the renewed relationship with the County including specific roles and responsibilities and financial commitment and underwriting by the County. [Target Date: October or later Commission meeting} PROGRAMMATIC IMPLEMENTATION PLAN Update: In conjunction with the FKAA staff, the County will move forward on the preparation of the programmatic implementation plan. Significant work has been completed by the BOCC in the past several months, but additional time investment is necessary on critical wastewater projects before completing the programmatic implementation plan, Staff anticipates having this item in front of the Board at its November meeting, Most importantly, the plan will outline a reasonable and achievable prioritized list of wastewater projects to move forward on, Issues Addressed! Action Taken: o Approval by BOCC of policies on "reasonable" connection fees and monthly service charges and public financial assistance to wastewater projects and economically disadvantage households. 4 Issues That Need to be Addressed: o Need for realistic programmatic implementation plan that establishes policies on reasonable connection fees and monthly charges; project and financing priorities; and a schedule for programming of wastewater projects based on available identified funding in accordance with the Sanitary Wastewater Master Plan. o Need to revise the Seven Year Work Program in the Monroe County Year 2010 Comprehensive Plan to reflect the results of the adopted programmatic implementation plan. Recommended BOCC Action: o Consideration of recommended draft programmatic implementation plan prepared by County and FKAA staff, Significant Future Milestones/Actions: o Approval of programmatic implementation plan for the Sanitary Wastewater Master Plan [Target Date: November Commission meeting] FEMA UNMET NEEDS PROJECTS A. General FEMA has notified FKAA and the County that the Programmatic Environmental Assessment (PEA) for all FEMA projects is completed and that public hearing dates have been set for October 8, 2002 in Key Largo and October 9, 2002 in Marathon, All staff meeting will be held in preparation for the October meetings on September 19, 2002. An informal public workshop will also be hosted by the FKAA on September 19, 2002 in Key Largo. This meeting will provide candidates for the new Utility Board an opportunity to understand the details of the FEMA project in Key Largo. Supplemental Environmental Assessment hearings will be held for each of the projects individually, Key Largo, Conch Key, and Baypoint later in the fall, Dates have not yet been set for these hearings. However, these meetings should start with the Conch Key project sometime in November, B. Key Largo Trailer Village (MM 101.5) and Key Largo Park (MM 100.5) Update: Staff continues to work in preparing documents for both the Key Largo Trailer Village FEMA project and the Key Largo Park State funded project. Staff believes that all necessary documents for initiating a Request for Statements of Qualification will be complete before the end of the year, Thus, the newly elected Key Largo Wastewater Utility Board can direct the projects from that point forward, Such preparations will include all documentation required to that point for both FEMA and FDEP, which provide separate funding for these projects. 5 Recommendations are being made at the September Board meeting to redistribute the State cesspit replacement funds to the Key Largo projects to assist in writing down some of the cost to homeowners and businesses as well as to expand the user base of these projects if possible. However, principal issues facing the Board of County Commissioners is the smooth and expedient transition of this process to the newly elected Utility Board. Staff believes that the newly elected Board will have a difficult time completing the transition in a timely manner without the assistance of the County and the FKAA. Meetings between the County, FKAA, and the State continue on this subject. Issues Addressed! Addressed Taken: o Approval by the BOCC assigning $1.66 million in available State funds to expand the Key Largo Trailer Village FEMA project to include Key Largo Park. o Approval of a resolution with the FKAA for the use of $1,66 million in FDEP funds to move forward toward constructing the Key Largo Park project and the designation of up to $200,000 in Fund 148 dollars to assist the FKAA in on-going engineering costs for the Key Largo project. Issues That Need to be Addressed: o Need to amend the joint resolution with FKAA (Resolution No, 093-02) to more accurately reflect transition of responsibilities and duties to the new wastewater utility board for the FEMA and State project commitments and for any commitments that the County has made to the FKAA, Recommended BOCC Action: o Consideration of an amended joint resolution ar agreement with the FKAA for the Key Largo Trailer Village on a transition plan and appropriate changes in County funding and underwriting commitments. Significant Future Milestones/Actions: o Approval of a joint resolution with the FKAA on the Key Largo Trailer Village project. [Target Date: November Commission meeting} C. Conch Key (MM 61) Update: Public works has completed a survey of the proposed Conch Key Wastewater Treatment Plan site in order to request transfer of the property from the Florida Department of Transportation to the County. This action is being coordinated by the Land Authority and should be in front of the Commission within by the November meeting, 6 The FKAA will prepare design criteria for the stand alone project at Conch Key. The design criteria will be for a designlbuild type project. These design criteria documents should be read by December 2002, The County and the FKAA will hold an informal public meeting at Conch Key to discuss the direction and progress on the project and to take public input. This meeting will be held in October 2002. Issues Addressed! Addressed Taken: o Approval by the BOCC of the selection of the stand-alone wastewater management option for Conch Key on June 20, 2002, Issues That Need to be Addressed: o Need to revise the joint resolution with the FKAA (Resolution No, 227-002) to reflect updated job responsibilities and commitments, Recommended BOCC Action: o Consideration of amended joint resolution or agreement with the FKAA for Conch Key on milestones to complete the project and on County funding and underwriting for the commitments for the project. o Need to accept transfer of property on the bayside of Conch Key from FDOT for placement of the proposed wastewater treatment plant, Significant Future Milestones/Actions: o Approval of a joint resolution on milestones to complete the Conch Key project and on County project funding and underwriting commitments. [Target Date: November Commission meeting} o Approval of transfer of property from FDOT to the County. [Target Date: November Commission meeting} D. Baypoint (MM 15) Update: Work on the development of design documents continues for the Baypoint FEMA project. FKAA will be finished with this work in preparation to send and evaluate responses to a Request for Statements of Qualification in the early part of the year. The land Authority is proceeding on efforts to appraise and acquire the selected wastewater treatment plant site at Bluewater RV Park. Staff is continuing to look at other options and will look at those at its meeting with the FKAA on September 19th, 7 Revisions to the County zoning regulations concerning allowed uses in RV Land Use districts is underway, The Planning Commission heard the proposed change to the RV District and several others on Tuesday September 10th, 2002 amending the regulations to all wastewater treatment facilities. In the future, components of public wastewater utilities, such as pump stations or treatment plants, may be allowed through a major conditional use approval. The BOCC will receive this amendment to the Land Development Regulations (LDRs) soon. Quite a number of individuals representing the property owners in Bluewater RV Park addressed the Planning Commission concerning the revision to the LDRs and are likely more specifically concerned about the potential location of this plant within their current Park boundaries, As requested by the BOCC, County and the FKAA staff will hold public forums on the Baypoint project in October, Issues Addressed! Addressed Taken: o Selection by the BOCC of a site in Bluewater RV Park for location of a wastewater treatment plant. Issues That Need to be Addressed: o Need to acquire the site for the wastewater treatment plant at Bluewater RV Park. o Need to revise the joint resolution with the FKAA concerning mutual responsibilities and commitments for the Baypoint FEMA project. Recommended BOCC Action: o Consideration of an amended joint resolution with the FKAA. o Consideration of an acquisition site through purchase or condemnation, Significant Future Milestones/Actions: o Acquisition of wastewater treatment plant site for the Baypoint project. [Target Date: October 2002 Commission meeting] o Approval of an amended joint resolution with the FKAA. [Target Date: October Commission meeting or later] KEY WEST RESORT UTILITIES (STOCK ISLAND EXPANSION) Update: The Commission requested that a recommendation be made concerning the determination of financial hardship for those required to hook-up to an investor-owned utility. The Commission will be asked to review recommendations made by staff at its September 2002 meeting, Discussions with the Monroe County Housing Authority indicate that the housing 8 Authority is willing to administer the grant program for hook-up fees and certain on-site improvements for those determined to have a financial hardship. In will use SHIP funds in this effort, In addition, the Housing Authority has been notified that it has been short-listed to receive Community Development Block Grant Funds (CDBG) in the amount of approximately $487,000, These funds will assist in making hook-up fees and on-site improvements for wastewater affordable to a larger number of individuals identified as meeting hardship criteria. Issues Addressed/Addressed Taken: o Approval by the BOCC on July 31, 2002, of a contract to make available to Key West Resort Utility $4.6 million in Fund 304 Infrastructure money to expand its collection to the remaining portions of south Stock Island. Issues That Need to be Addressed: o Need to develop a financial assistance program for economically disadvantaged households. o Need to request the Key West Resort Utility move forward on upgrading its plant to A WT. Recommended BOCC Action: o Consideration of financial assistance program developed by staff at the direction of the Board, o Consideration of a resolution requesting that Key West Resort Utility move forward on upgrading its wastewater treatment plant to meet A WT standards. Significant Future Milestones/Actions: o Acceptance of financial assistance program for economically disadvantaged households presented by staff. [Target Date: September Commission meeting} o Approval of resolution requesting the Key West Resort Utility upgrade to A WT, [Target Date: October 2002 Commission meeting} LOWER KEYS WASTEWATER (MM 7.0 TO MM 11.0) Update: The FKAA is initiating preliminary work to develop engineering design criteria for the Big Coppitt area. This will begin in detail in October. Information developed by the FKAA will be evaluated to determined what the best management options are for the area, A preferred approach will be presented to the Commission. Issues Addressed/Addressed Taken: o None to date 9 Issues That Need to be Addressed: o Need to determine the preferred wastewater management option for Big Coppitt, including preliminary system capital and operating costs, o Need to complete preliminary engineering and design on preferred wastewater management option. o Need to seek additional funding for the project as the next project in priority from the Sanitary Wastewater Master Plan, Recommended BOCC Action: o Consideration of recommendations of staff on preferred wastewater management options for Big Coppitt. o Consideration of a resolution requesting that Key West Resort Utility move forward on upgrading its wastewater treatment plant to meet A WT standards. o Direct staff to seek funding for the Big Coppitt wastewater project. Significant Future Milestones/Actions: o Consideration of project proposals for wastewater management options on Big Coppitt to determine the preferred wastewater management option. [Target Date: To be determined] o Acceptance of grant funds to further develop the Big Coppitt wastewater project. [Target Date: To be determined] EP A DECENTRALIZED WASTEWATER DEMONSTRATION PROGRAM Update: Staff has met with the Board of the FKAA and presented a preliminary proposal to move forward in acceptance of the EP A Decentralized wastewater grant. The FKAA Board agreed that it was worth pursuing the grant through the development of a feasibility analysis at which time the County and the FKAA would determine whether to move forward further on the project. This same preliminary proposal is before the Commission for its September meeting. Should the Commission agree to move forward with the project, CH2MHill would be requested to prepare grant application for the EP A funds and the feasibility analysis. CH2MHill would then prepare a Request for Statements of Qualification document to complete construction components of the project. Issues Addressed! Addressed Taken: o None to date: 10 Issues That Need to be Addressed: o Need to determine how the grant funds will be used and to prepare an application to receive the EP A decentralized utility grant award. o Need to complete a feasibility analysis to determine whether or not to move forward with the EP A decentralized Utility grant award, Recommended BaCC Action: o Consideration of options for acceptance of EP A funding and direction to County staff to prepare a grant application for receipt of the funds, Significant Future Milestones/Actions: o Decision on the on staff recommendations to move forward with the EP A decentralized grant program, [Target Date: September Commission meeting} OTHER ISSUES Update: Revision of the "coldspot" ordinance has placed areas like Duck Key and Conch Key in jeopardy of being required to provide engineered on-site wastewater systems prior to the availability of the centralize wastewater system anticipated for either area. This jeopardy would involve both new construction, additions, repair, or redevelopment. Issues Addressed/Addressed Taken: o None to date: Issues That Need to be Addressed: o Need to redraft the Coldspot ordinance, Chapter 15,5, to eliminate Condh Key and Duck Key as coldspot areas, Recommended BaCC Action: o Direct staff to revise the Coldspot ordinance to delete Conch Key and Duck Key from the Coldspot ordinance. Significant Future Milestones/Actions: o Approval of a revision to Chapter 15,5 to delete Conch Key and Duck Key from the Coldspot ordinance. [Target Date: October Commission meeting} 11