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Item T01 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 18 December 2002 Division: Growth Management Bulk Item: Yes No~ Department Marine Resources AGENDA ITEM WORDING: Update briefing on wastewater management projects and issues. 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 as necessary . PREVIOUS RELEVANT BOCC ACTION: NA CONTRACT/AGREEMENT CHANGES: NA STAFF RECOMMENDATIONS; NA NA BUDGETED: Yes No TOTAL COST: COST TO COUNTY: NA REVENUE PRODUCING: Yes No NA AMOUNT Per Month Year DOCUMENTATION: Included-X- / APPROVED BY: County Atty NA DIVISION DIRECTOR APPROVAL: DISPOSITION: AGENDA ITEM NO.: 7/ r BC021230 111251022: I 5 PM Memorandum DeDartment or Marine Resources 2798 Overseas Highway, Suite 420 Marathon, Florida 33050 Voice: (305) 289 2507 FAX: (305) 289 2536 Email: garrc\I-gCl1n:c 11l1ll1llroCCl1UIl!\ -tl.COIll Board orCountv Commissioners Mayor Dixie Spehar, Dist I Mayor Pro Tern Murray Nelson, Dist. 5 Commissioner George Neugent. Dist 2 Commissioner Charles "Sonny" McCoy, Dist. 3 Commissioner David Rice, Dist. 4 DATE: 10 December, 2002 SUBJECT: Board of County Commissioners James L. Roberts, County Administrator iii )/-t JJ-. f. Staff Update Report (# 07-02) on Waste a er ~aster Plan Implementation Issues TO: FROM: The staff of the Florida Keys Aqueduct Authority will be on hand at the December Commission to update the Commission on progress to date. Attached for your review is the FKAA staff report for December. AVAILABLE FUNDS FOR WASTEWATER Update on Federal Funds - $100 M Congressional Authorization: Public Law 106-554 authorized the Army Corps of Engineers (ACOE) to "provide technical and financial assistance to carry out projects for the planning, design and construction of treatment works to improve water quality in the Florida Keys National Marine Sanctuary. Congress may appropriate up to 100 million dollars through previous authorization language. To date, through fiscal year 2002, $420,000 has been appropriated by Congress and received by the ACOE for document preparation. At both the County and state level, support has been given for the South Florida Water Management District to be designated as the non-federal sponsor for the project. They were confirmed as the local partner during the summer. Currently, the two agencies are developing a Project Cooperation Agreement (PCA) to coordinate wastewater efforts in the Keys. Over the course of the coming months, the ACOE will be developing a Program Implementation Guide and a Program Management Plan. Input from the Program Development Team will be taken as either document is created and the project comes to fruition. To begin the process, the Monroe County Intergovernmental Task Force held a meeting on September 23, 2002 on behalf of the ACOE and SFWMD. The Corps and District discussed plans to move forward with wastewater projects in the Keys. At this meeting it was determined that the Intergovernmental Task Force, since already in existence and representing all BC021231 12/10/0212:19 PM governments in Monroe County, would accept the role acting as the Program Development Team (PDT). The Board of Commissioners, at its regular meeting held on September 18, 2002 resolved to request that our Congressional delegation focus on moving any money appropriated under Public Law 106-554 to the Florida Department of Community Affairs for direct management and dissemination to wastewater projects in the Keys. The Intergovernmental Task Force met on October 4, 2002 to discuss the Commission's Resolution concerning the appropriation of federal dollars for wastewater. The Task Force voted unanimously to request that the County reconsider its resolution to allow a bifurcated approach, appreciating the actions of the Commission and the County's State Representative, but suggesting that the County continue to pursue funding under the current federal authorization. At its 16 October meeting, the Board adopted a revised Resolution, supporting the dual approach suggested by the Intergovernmental Task Force. Similar Resolutions have been adopted by each of the Cities. On behalf of the Task Force, World Wildlife Fund representatives spent the week of the 21st of October in Washington, D.C. discussing wastewater project appropriations with Key Congressional staffers. In furtherance of ACOE and SFWMD objectives, the Project Development Team met on November 22, 2002. Discussion focused on developing criteria for establishing priorities for the wastewater and stormwater projects that will be funded under the program. Jim Reynolds and David Fernandez agreed to redraft some of the "readiness to proceed" criteria which would allow the ACOE and the District to determine which projects amongst the County and municipalities were truly ready to begin construction. Future meetings of this group will occur at the beginning of the year. 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. On October 8th and 9th, FEMA held its Programmatic Environmental Assessment meetings in Key Largo and Marathon. The meetings were uneventful and from 7 to 10 individuals attended each. The audience raised a number of questions, most unrelated to the general Environmental Assessment. Questions about the new Key Largo Wastewater Board and the Conch Key wastewater project were the principle subjects of discussion. 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. No dates for these meetings have yet been set. 2 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. All of these documents should be available and out for responses by the end of the year. In the case of the Key Largo project, detailed designlbuild specifications will be sent out in early December. Response to the Request of Statements of Qualification will be provided for review by the new Key Largo Wastewater Utility Board. The Board will have sole responsibility for reviewing, accepting (or rejecting), and developing any contracts necessary once the responses are received. 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. The State has now determined that requests, through the County, for private utilities are eligible for grant dollars. Dick Smith, with the State, has initiated a request for additional information concerning North Key Largo and Key West Resort Utilities. Staff is working with the two Utilities to answer Dick's questions in a timely manner in order to meet the March 1, 2003 deadline. The County currently has an interlocal agreement with the FKAA to complete comprehensive design work for the Key Largo Park project area. The County has committed a total of $356,000 to the development of this project. A revision to the interlocal agreement is on the December Board agenda, which provides clarification on payment procedures for the Key Largo Park project. Development of each project is moving forward within the FKAA to have RFQs on the street for each by the middle to the end of December. Remaining Cesspool Elimination Funds: No Additional Updates at this time. From the November Report. 3 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 BOCC approved utilizing FDCA and County funds intended for cesspit removal at its September 21, 2002 meeting. Grant revisions to both FDCA grants for cesspit funding were also provided to the Board at its October 16, 2002 meeting. Both contract revisions were approved. The FDEP grant, if any FDEP funds remain, must be spent by July 2003. Staff has talked to both FDEP and the FDOH at about the transition process for using this money. FDOH will send out "last chance" letters to the remaining 36 applicants in the permitting process. If they do not adequately respond by the end of the year, the cesspit identification and elimination grant program will be terminated and the funds will be shifted through a grant contract revision to the Key Largo Wastewater project or elsewhere as appropriate. Based on the Commission's approval to shift the cesspit replacement grant funds to other projects, staff has focused on providing these funds to projects underway in Key Largo. Precisely how much of the state and remaining County funds will be necessary to fund these projects has not been determined to date. Some of the issues concerning the use of these funds will be presented to the new Key Largo Wastewater Board. Their response will be provided back to the Commission with additional staff reports before a final determination concerning the use of these funds is made. Other Grant Opportunities: Under House Bill 851 (FY 2002), the County developed a wastewater project proposal for the Key Largo area. Similarly, the FKAA submitted several different proposals, one for each of its current wastewater project areas. The Key Largo proposal and other FKAA proposals were submitted in the early part of November. Rick Casey of the Monroe County Housing Authority has been very hopeful of receiving a Community Development Block Grant (CDBG)for approximately $350,000. This request fell through in October, failing to meet the funding cut by 1 place. Mr. Casey will be able to resubmit a request in December of 2002 and hopes to receive an affirmative response in June of 2003. This is highly likely as agencies that already have a grant will not receive another. This puts the County in a strategic position to receive a grant in the upcoming round of grant approvals. The problem with this delay is that failure to receive that CDBT grant funds limits availability of funds to assist low and very low income households. 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 at Key Largo Park. 4 o Approval of staff recommendations for use of remaining FDEP, FDCA, and County funds remaining from cesspit replacement program. o Approval of a Resolution requesting that the State's Congressional delegation assess the feasibility of shifting any federal appropriations funds for wastewater in the Florida for management and dissemination by the Florida Department of Community Affairs. o Approval by the BOCC to provide an additional $156,000 to the FKAA for development of the state funded Key Largo Park wastewater project. o Approval of a revised Resolution to seek a dual path for funding wastewater projects, one through the existing federal authorization and the other through the efforts of the County's State Representative to have appropriations provided to a State Trust Fund administered by FDCA. o Submitted a project proposal for Key Largo under the auspices of House Bull 851. 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 additional recommendations for financial assistance programs. Significant Future Milestones/Actions: o Decision on financial assistance programs as recommended by staff. (Target Date: December Commission meeting] WASTEWATER GOVERNANCE Two issues now appear under the wastewater governance category of the monthly report: 1. 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. 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 at Key Largo Trailer Village and a designlbid/build project at Key Largo Park. The FKAA will provide 5 the documents to the newly elected Board of the Key Largo Wastewater Utility as the RSQs are completed and the new Board is prepared to receive them and take action. The Florida Keys Aqueduct Authority (FKAA) is faced with significant funding limitations during the development phase of wastewater projects currently underway until these projects are complete and are revenue generating. In order to address the start-up funding issue, the FKAA has proposed entering into a cooperative interlocal agreement with the County to develop a limited funding source for administration, planning, and development of wastewater projects. The funding source in this case would be a Municipal Service Taxing Unit (MSTU) authorized of County governments (not municipalities) under Section 125.01(1)(q), Florida Statutes. No referendum is required for levy by a County of ad-valorem taxes for the provision of municipal services with an MSTU. Revenues would be generated for a limited duration of four years and would be levied against all properties. Funding levels and millage would be justified in a four year budget for each project within an MSTU. At the time of required hook-up, developed properties would be required to pay hook-up fees, however, reduced by the amount paid by those properties under the MSTU. The Commission agreed to advertise MSTU ordinances for Conch Key, Marathon, Bay Point, and Big Coppitt for its December Baord meeting. In order for the MSTU to be effective for the coming tax bill (fall 2003), the MSTU ordinance must be passed before January 1, 2003 in accordance with Florida Statutes Chapter 125. Staff also 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. To date, staff has met with the new Board twice, once at its inaugural meeting on November 19, 2002 and again on December 4, 2002. Additional meetings are planned for December 16,2002 and January 15,2002. Agenda packages and minutes from the meetings which have been held are being provided to the Board of County Commissioners as they occur. Issues Addressed! Actions Taken o MSTUs advertised for Conch Key, Marathon, Bay Point, and Big Coppitt 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. o Need to consider the possibility of an MSTU for each of the wastewater project areas, including the City of Marthon. Recommended BOCC Action: 6 o Consideration of new agreement(s) with the FKAA establishing roles and responsibilities for wastewater services in unincorporated Monroe County prepared by the FKAA and County staffs. o Consideration of MSTU concept and approval for advertisement (including Key Largo potentially). 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: December or later Commission meeting] o Approval of an MSTU ordinance adopting four wastewater districts, Conch Key, Marathon, Baypoint, and Big Coppitt. (Target Date: December meeting] o Approval of an MSTU ordinance adopting a wastewater district for Key Largo if the Key Largo Wastewater Board requests such action and only after careful consideration of the Commission. (Target Date: January/February meeting] PROGRAMMATIC IMPLEMENTATION PLAN Update: No Additional Update at this time. Update from December. 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. 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 7 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. Sil!llificant Future Milestones/Actions: o Approval of programmatic implementation plan for the Sanitary Wastewater Master Plan [Target Date: January 2003 Commission meeting] FEMA UNMET NEEDS PROJECTS A. General The Programmatic Environmental Assessment (PEA) for all FEMA projects is completed and that public hearing dates were held on October 8, 2002 in Key Largo and October 9, 2002 in Marathon. 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 December or early 2003. 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. The Board approved the redistribution 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. This will help expanding the project area and in minimizing some costs. 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. As noted elsewhere in the report, the County has hosted the 8 initial meeting and one more with plans to meet with the Utility Board at least two more times in December and January. Staff is also meeting with the FKAA and the chair of the Utility Board to derme what options are available to get the Utility Board through the transition period involving the Key Largo Trailer Village and Key Largo Park projects with the attendant time lines for both. 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. o Approval of an additional $156,000 in funding for project development at Key Largo Park 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 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: December Commission meeting] C, Conch Key (MM 61) Update: The FKAA will prepare design criteria for the stand-alone project at Conch Key. The design criteria will be for either a designlbuild or designlbid/build type project. These design criteria documents should be ready by the end of December 2002. A typical site layout for the wastewater treatment plant and vacuum pump station is attached for your review. The Commission agreed at its October meeting to a transfer agreement with the FDOT for property on the north side of U.S. 1 on Conch Key. This property will be utilized for both the 9 treatment plant and vacuum pump station on the island. Completion of this acquisition effort should be complete by the end of the year. The County and the FKAA held an informal public meeting at Conch Key on December 3,2002 at the Conch Key Firehouse to discuss the direction and progress on the project and to take public input. In attendance were two Commissioners, Growth Management staff, FKAA staff, and representatives from Boyle Engineering. The meeting was successful. Approximately 25 individuals from the community attended. A number of questions were asked and answered to the satisfaction of the community. Staff agreed to keep the community informed and to advise them of future opportunities to discuss the project and offer comments. In particular, staff informed the community that FEMA would be holding Supplemental EA hearings concerning Conch in the near future. Staff also indicated that we would mail out notices to all property owners before the next meeting. 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. o Approval of an agreement with FDOT for the proposed wastewater treatment plant site on the north side of the Overseas Highway, Conch Key Decision not to move forward in acquiring property on the south side of the Overseas Highway, Conch Key. o Held informal workshops with the Conch Key community in early December 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. 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: Januaryr Commission meeting] 10 D. Baypoint (MM 15) Uodate: 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 purchase lots 11 and 12 of Bay Point Amended Plat Saddle bunch as directed by the Commission at the 16 October 2002 Board meeting. The Commissions' "due diligence" period ends on December 15, 2002 and therefore, acquisition should be complete by the end of the year. Surveys of lots 11 and 12 are complete including elevations and have been provided to the FKAA in order to allow them to begin detailed site engmeenng. County and FKAA staff held an informal community meeting at the Sugarloaf Firehouse on December 4, 2002 at 7:00 PM to discuss current progress on the project with Baypoint and Saddlebunch Keys' residents. Growth Management staff, FKAA personnel, and a representative from Boyle Engineering were in attendance. Approximately ten citizens from the Community were on hand to ask questions about the project. This meeting went well, however the prime focus of the citizens was the fact that the County agreed to purchase property on Bay Point as the treatment plant and vacuum pump station site instead of the Bluewater RV Park site. As at the Conch Key meeting, staff agreed to provide individual notice prior to the next meetings concerning the Bay Point area. Issues Addressed! Addressed Taken: o Selection by the BOCC of a site in Bluewater RV Park for location of a wastewater treatment plant. o Approval to purchase lots 11 and 12 of Baypoint Subdivision o Held informal workshops with the Bay Point community in early December 2002 Issues That Need to be Addressed: 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. Significant Future Milestones/Actions: o Approval of an amended joint resolution with the FKAA. [Target Date: January 2003 Commission meeting or later] 11 KEY WEST RESORT UTILITIES (STOCK ISLAND EXPANSION) Utxlate: A Resolution is on the Board agenda for December requesting that the KWRU initiate an upgrade of their wastewater facility to meet the A WT wastewater effiuent standard. In addition, the state has determined that funding appropriated under state budget line item 1765 a, may be used for private utilities. County staff is proceeding to assure that this project meets its March 1, 2003 deadlines in order to receive funding directed toward this project ($134,822). 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. o Acceptance of financial assistance program for economically disadvantaged households presented by staff. o Revision of financial assistance program to include mobile home park owners, allowijng multiple payments over a three year period. Issues That Need to be Addressed: o Need to request the Key West Resort Utility move forward on upgrading its plant to A WT. Recommended BOCC Action: 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 Approval of resolution requesting the Key West Resort Utility upgrade to A WT. [Target Date: December 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. Staff will submit a grant proposal to FDEP under the auspices of House Bill 851 (FY 2002). Issues Addressed! Addressed Taken: 12 o None to date 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. The Commission approved this same recommended approach at its October meeting. Work orders for the completion of the EP A grant application and processing and for the Decentralized Utility feasibility study. CH2MHill will provide all documentation and report to the Commission by early 2003. 13 Issues Addressed! Addressed Taken: o Approval of staff recommendations to move forward with the EP A decentralized grant program. 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. o Need to access the feasibility study and determine the future direction of the EPA decentralized wastewater project. Recommended BOCC Action: o Agreement to submit grant application to EP A. o Assessment of project feasibility for the EP A Decentralized Utility project. Significant Future Milestones/Actions: o Approval of EPA grant for Decentralized Utility funding. [Target Date: December 2002 Commission meeting} o Determination of project feasibility for the EP A Decentralized Utility project. [Target Date: January or February 2003 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 Revision of ordinance to change Duck Key and Conch Key to "hotspots." Resolutions 39- 2002 and 40-2002. Issues That Need to be Addressed: o None 14 Recommended BOCC Action: o None Significant Future Milestones/Actions: o 15 Attachment 1 FKAA December update 16 WASTEWATER REPORT - DECEMBER 2002 General Information: . The next BOCC meeting is scheduled for December 18th in Marathon, At the time this report was prepared only limited information was available regarding wastewater items on the BOCC agenda: 1) Report on issues with the Florida Keys Aqueduct Authority, FEMA and the State including project eligibility and funding. 2) Update briefing on wastewater management projects and issues, 3) Resolutions creating Municipal Service Taxing Units (MSTU) for the Bay Point, Conch Key, Big Coppitt and City of Marathon wastewater project areas. !Active Project~ Little Venice Phase II Expansion: . The project will serve approximately 280 EDU's on the gulf side of U,S, Highway One, generally east of the Marathon Airport, with construction funding from a State grant of$I,122,408. . Staff, Boyle Engineering and the FDEP are preparing the documentation required by the USEP A to advertise an amended Finding of No Significant Impact (FONSI) for the expanded project, . Boyle Engineering is finalizing the project design with completion scheduled for December 2cJh, . Staff has applied for $900,000 of funding under the State of Florida Water Projects Funding (WPF) grant program in an effort to obtain supplemental funding for the project, Marathon Central: 17 . The bond validation ruling issued on August 2<ft by the Monroe County Circuit Court has been appealed to the Florida Supreme Court, . Additional changes are complete to the designlbuild/operate request for proposals that have been requested by the FDEP in their role as lender under the State Revolving Fund (SRF) loan program, . Staff is preparing a Basis of Conceptual Design Report as a required deliverable under the Coastal Impact Assistance Program (ClAP) grant funding agreement with the FDEP. Conch Key: . Monroe County expects to finalize the transfer of surplus V,S, Highway One right-of-way from FDOT for a wastewater treatment plant and vacuum pump station on the gulf side of Conch Key, . Staff attended a community meeting held by Monroe County on December 3rd to discuss the upcoming project with the Conch Key property owners and residents, . Staff has completed a Basis of Conceptual Design Report to accompany the Supplemental Environmental Assessment (SEA) information required by FEMA to conduct a site-specific public workshop for the project. The site- specific workshop will be conducted in January or February, . Boyle Engineering is finalizing a revised Preliminary Design Report based on a stand-alone treatment plant to be located on Conch Key. . Staff has applied for $200,000 of funding under the State of Florida Water Projects Funding (WPF) grant program in an effort to obtain supplemental funding for the project, Kev Lareo Trailer Villaee: . Staff is finalizing a Basis of Conceptual Design Report to accompany the Supplemental Environmental Assessment (SEA) information required for FEMA to conduct a site-specific public workshop for the project. The site- specific workshop will be conducted by FEMA in January or February. . Boyle Engineering is finalizing a design-build request for proposals that will be complete by December 31st. The RFP will be advertised the first week of January, . Boyle Engineering is also finalizing a preliminary design report that will accompany the design-build request for proposals as a referenced document, 18 Key Lareo Park: . A workshop meeting will be held on December 1 ~ with the KL WTD to discuss federal and State grant funding issues and requirements, FEMA, DCA, DEP, Monroe County and the FKAA will participate in the workshop, . A grant funding agreement is being prepared by the FDEP and will be provided to the new KL WWTD Governing Board in December, . Boyle engineering continues work on the project with 100% RFP design documents scheduled for completion by January 24h, . County staff is evaluating the availability of other sources of state and county grant funding (Le" cesspit elimination funds), a portion of which will be applied toward construction of the Key Largo Park project, Bay Point: . Staff is preparing a Basis of Conceptual Design Report to accompany the Supplemental Environmental Assessment (SEA) information required for FEMA to conduct a site-specific public workshop for the project, The workshop will be conducted by FEMA in February or March, . Staff attended a community meeting held by Monroe County on December 4th to discuss the upcoming project with the Bay Point Key and Saddlebunch Key property owners and residents. . Boyle Engineering is preparing a Preliminary Design Report based on a stand-alone treatment plant to be located on Bay Point. . Staff has applied for $400,000 of funding under the State of Florida Water Projects Funding (WPF) grant program in an effort to obtain supplemental funding for the project. Bie Coppitt Key. Geieer Key and Rockland Key: . Lindahl, Browning, Ferrari and Hellstrom (LBFH) is preparing a task order scope of work to prepare a. wastewater facilities plan and cost of service 19 study to evaluate the most cost-effective approach for the greater Big Coppitt area to receive service, . Staffhas applied for $1,800,000 of funding under the State of Florida Water Projects Funding (WPF) grant program in an effort to initiate a wastewater project that will serve a portion of Big Coppitt Key, City of Lavton: · On behalf of the City, FKAA staff has submitted an application for $3,000,000 of funding under the State of Florida Water Projects Funding (WPF) grant program in an effort to initiate a wastewater project to serve Layton. 20 Monroe County and City of Marathon Wastewater Facilities MUNICIPAL SERVICES TAXING UNIT (prepared by the Florida Keyes Aqueduct Authority) 12/17/02 How the MSTU Revenues will be Utilized: The Municipal Services Taxing Unit (MSTU) proposed for Bay Point, Conch Key, and Big Coppitt in Unincorporated Monroe County (the "County") and the City of Marathon (the "City") will enable the Florida Keys Aqueduct Authority (the "Authority") to continue working with the City and County to plan the development of its future wastewater infrastructure. The revenue generated will be used to support the Authority's costs regarding salaries, contractual services, office space, transportation and other operating expenses directly related to the City and County wastewater planning activities. Without a source of revenue, the Authority cannot continue providing wastewater planning and development services. The level of effort expended by the Authority relative to wastewater planning will be directly related to the amount of MSTU revenue utilized in the various districts. Revenue generated from the City of Marathon will not be used to support wastewater planning efforts of the other MSTU's, Special Districts, or other incorporated or unincorporated areas of the County (other than Big Coppitt, Conch Key, or Bay Point). Likewise, revenue from other MSTU's, etc., will not be used to support the planning efforts for Marathon wastewater projects. Excess revenue remaining at the end of the four (4) year MSTU period will remain for the use of the Districts wastewater planning, or to offset construction costs of their project(s). The City and the Authority have created the Marathon Wastewater Task Force that is comprised of representatives from the City Council and Authority Board. The purpose of this Task Force is to keep the lines of communication open between the policy makers of the respective Council and Board and to meet "in the Sunshine" during public meetings to obtain public input. The Task Force will make recommendations to the Authority Board and City Council on what planning initiatives the Authority should undertake with the City. The Authority will not act unilaterally to undertake any project without the support and direction of the City Council. Similarly, the Authority works closely with County Staffin the Development of County waste water projects. The proposed millage rates are intended to generate sufficient revenue to enable the Authority to continue to provide planning and project development services to move City and County projects closer to design and construction. The best chance to obtain Federal funding is to be ready to spend it when it becomes available. To be ready requires that planning efforts continue in anticipation of future Federal grants, The Army Corps of Engineers is working with the South Florida Water Management District on a plan to fund 100 million dollars worth of wastewater projects. Projects throughout Monroe County that are planned and ready to go will receive these funds first. The amount of Federal grant funds that any project will receive is unknown at this time. There are several municipalities, other unincorporated areas of the County, and a Special District that will be competing for those funds when they become available. This is the type of planning effort that the MSTU revenue will allow the Authority to undertake with the City and County. lof2 , How the MSTU Budget Was Developed: The Florida Keys Aqueduct Authority estimates that its costs to operate as a wastewater utility, including staff, occupancy costs and contractual services will be approximately $1,032,000 in fiscal year 2004 (the first year proposed to be funded by tax revenues). This budget includes all planning and project development costs that the Authority can reasonably foresee incurring over the next four years, as well as a portion of the cost of specific project engineering and legal. These costs would be recovered initially from four taxing units: Marathon, Bay Point, Conch Key and Big Coppitt. Costs to be recovered from each district were allocated based on the taxable property value base in each district. To generate sufficient revenue to pay these costs, the millage rates are estimated to be .77 mills for Marathon and .70 mills for the remaining three districts. Costs can be broken down into six basic components: salaries and benefits, contracted general engineering services, contracted general legal services, contracted financial and other services, other operating expenses and specific engineering and legal for the Marathon and Big Coppitt systems. 1. Salaries and benefits ($492,000) includes the costs of all engineering, fmancial and administrative positions dedicated primarily to wastewater (three of which are currently filled) as well as allocations for all necessary upper management who spend a portion of their time on wastewater efforts, This total, including benefits, covers up to 9 full and part-time wastewater employees. 2, Contracted general engineering services ($21,000) are the costs of retaining an engineering firm to consult on general wastewater design, studies and planning matters throughout the year. These costs are generally not project-specific in nature and are therefore recovered from all areas. 3. Contracted general legal services ($72,000), similar to the engineering service described above, are general in nature and represent the cost of retaining general counsel for ongoing legal advice on an as- needed basis. 4, Contracted financial and other services ($108,000) include the costs of retaining rate consultants to perform rate analysis and project feasibility studies, financial advisors to assist in structuring and analyzing potential fmancing methods, and certified public accountants to audit the Authority's records. 5, Other operating expenses ($129,000) represent other basic costs of operations, such as rent, utilities, advertising, postage, automobile expenses and other costs. 6, Specific engineering and legal services for Marathon and Big Coppitt ($210,000) are to be paid solely out to those two taxing districts. These costs relate to specific analysis of various options for system design and construction for these two systems. 20f2 Ordinance Creating Conch Key MSTU MONROE COUNTY, FLORIDA ORDINANCE NO. AN ORDINANCE OF MONROE COUNTY, FLORIDA, CREATING THE CONCH KEY MUNICIPAL SERVICE TAXING UNIT LOCATED WITIDN THE UNINCORPORATED AREA OF MONROE COUNTY, FLORIDA, TO PROVIDE WASTEWATER AND RECLAIMED WATER SERVICES AND FACILITIES; DEFINING THE BOUNDARIES OF THE UNIT; AUTHORIZING THE BOARD TO ANNUALLY LEVY AD VALOREM TAXES WITIDN THE BOUNDARIES OF SUCH UNIT NOT TO EXCEED 0.70 MIL; AUTHORIZING THE USE OF THE TAX REVENUE FOR ENUMERATED PURPOSES; AND PROVIDING AN EFFECTIVE DATE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA THAT: SECTION 1. TITLE. This ordinance may be cited as the Conch Key Municipal Service Taxing Unit. SECTION 2, AUTHORITY AND PURPOSE. (A) This Ordinance is enacted under the authority of Article VIII, Section 1, Florida Constitution, and Sections 125.01 and 125.66, Florida Statutes. The Board of County Commissioners (the "Board") of Monroe County, Florida, has all powers of local self-government to perform county and municipal functions and to render services in a manner not inconsistent with general law and such power may be exercised by the enactment of county ordinances and resolutions. (B) Section 125.01(1)(q), Florida Statutes, provides specific legislative authorization for counties to establish a municipal service taxing unit for any part or all of the unincorporated areas within its boundaries, or within the municipal boundaries of an incorporated area upon consent of the governing body of such municipality, within which may be provided essential facilities and services. (C) The purpose of this Ordinance is to create a municipal service taxing unit to fund the provision of municipal services associated with the administration, planning and development of wastewater and reclaimed water projects within the municipal service )l.-/ Ordinance Creating Conch Key MSTU taxing unit as generally described in Section 3 of this Ordinance. This Ordinance shall be liberally construed to effect the purposes hereof. (D) This Ordinance is adopted to fulfill the obligation of the Board under an Interlocal Agreement by and between the Board and the Florida Keys Aqueduct Authority (the "Authority") to provide limited funding source for the reimbursement and provision of municipal services relating to administration, planning and development of wastewater and reclaimed water projects (the "Interlocal Agreement"). SECTION 3, CREATION OF MUNICIPAL SERVICE TAXING UNIT. (A) Pursuant to the provisions of section 125.01(1)(q), Florida Statutes, there is hereby created a municipal service taxing unit for that portion of the unincorporated areas of the County. Such municipal service taxing unit shall be known as the Conch Key Municipal Service Taxing Unit. All matters concerning such municipal service taxing unit shall be governed by the Board. (B) The boundaries of Conch Key Municipal Service Taxing Unit are more particularly described in Exhibit A hereto and same are incorporated by reference. (C) From time to time the Board may by resolution take any action not inconsistent with this Ordinance or any interlocal agreement to assist the Authority in funding the administration, planning and development of wastewater and reclaimed water projects within and benefiting the Conch Key Municipal Service Taxing Unit. SECTION 4. AUTHORIZATION OF AD VALOREM TAXES. (A) The Board is hereby authorized, in the manner and under the authority provided by section 125.01(1)(q) and (r), Florida Statutes, to levy and collect additional ad valorem taxes at a millage rate not to exceed 0.70 mil upon real and personal property within the Conch Key Municipal Service Taxing Unit commencing with County fiscal year 2003-2004. (B) The collection of ad valorem taxes as authorized herein shall cease after four (4) consecutive fiscal years and the Conch Key Municipal Service Taxing Unit shall terminate at the end of County fiscal year 2007-2008. SECTION 5, USE OF REVENUE; IMPLEMENTATION, (A) Revenues derived from ad valorem taxes levied within the Conch Key Municipal Service Taxing Unit pursuant to Section 4 shall be used solely to pay for and provide funding for administration, planning and development costs associated with and 2 Ordinance Creating Conch Key MSTU incurred in advancing of wastewater and reclaimed water projects within and benefiting the Conch Key Municipal Service Taxing Unit. (B) The Board shall adopt a budget for the Conch Key Municipal Service Taxing Unit for the fiscal year beginning October 1, 2003, and each year thereafter, at the same time and in the same manner as the County budget. Such budget shall contain all or such portions of the costs incurred and planned in conjunction with the funding of municipal services contracted to be provided by the Authority under any interlocal agreement. SECTION 6. SEVERABILITY, Should any provision of this Ordinance be declared by a court of competent jurisdiction to be invalid, the same shall not affect the validity of this Ordinance as a whole, or any part thereof, other than the part declared to be invalid. SECTION 7, CONFLICT WITH OTHER ORDINANCES, All ordinances or parts of ordinances in conflict with this Ordinance are hereby repealed to the extent of said conflict. SECTION 8, INCLUSION IN THE CODE OF ORDINANCES. The provisions of this Ordinance shall be included and incorporated in the Code of Ordinances of the County of Monroe, Florida, as an addition or amendment thereto, and shall be appropriately renumbered to conform to the uniform numbering system of the code. SECTION 9. EFFECTIVE DATE. (A) This Ordinance shall be filed with the Department of State prior to January 1, 2003. (B) After enactment by the Board, this Ordinance shall then take effect upon the filing with the Department of State as provided in Section 125.66(2), Florida Statutes. [Remainder of page intentionally left blank.] 3 Ordinance Creating Conch Key MSTU PASSED AND ADOPTED by the Board of County Commissioners, Monroe County, Florida at a regular meeting of said Board held on this _ day of December 2002. Mayor Charles "Sonny" McCoy Mayor Pro Tempore Dixie Spehar Commissioner George Nugent Commissioner Umberto "Bert" Jimenez Commissioner Murray Nelson BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA (SEAL) By: Mayor/Chairperson Danny Kolhage, Clerk By: Deputy Clerk 4 Ordinance Creating Conch Key MSTU EXHIBIT A CONCH KEY MUNICIPAL SERVICE TAXING UNIT AREA The area generally bounded on the west by Tom's Harbor Cut, on the east by the Long Key Channel, on the north by Florida Bay, and on the south by the Atlantic Ocean (between Mile Markers 62 and 63), Monroe County, Florida, less and except the island known as Duck Key. J:\BONDS\2002\4155,08 (MSTU)\Ordinances\Conch Key,doc A-I o Each property within a MSTU will be assessed an ad valorem tax that will underwrite FKAA's planning, engineering, and associated overhead costs for development of the wastewater system within the taxing district boundaries. o Each MSTU will be in place up for a maximum of four years, after which time sufficient revenues, rates, fees, and charges to users become available. o Each approved MSTU will be implemented at a later date through a project specific Interlocal Agreement between the County and FKAA. o The revenues collected per MSTU will only be spent on each area's pro-rata share of the FKAA's costs for planning, engineering, and associated overhead costs. o The County Commission will annually approve the budget and establish the milleage rate for each MSTU. o The revenues generated to support FKAA.'s development of these projects will write down the future costs for propenies required to hook-up when the wastewater facility becomes operational. o If the MSTUs are established, the FKAA. will require other cornrnitted funding sources, either from the County or grants. Page 2 of2 EXECUTIVE SUMMARY TO: Board of Directors of the Florida Keys Aqueduct Authority Board of County Commissioners, Monroe County, Florida CC: City Council, City of Marathon, Florida FROM: Jim Reynolds, Deputy Executive Director, Florida Keys Aquedlct Authority RE: Developing a Limited Funding Source to Pay for Initial Costs of Administration, Planning and Development of Wastewater and Reclaimed Water Projects DATE: November 4, 2002 OBJECTIVE To provide an overview and the necessary implementing documents for the timely creation a limited funding source, to pay for start-up costs for wastewater, reclaimed water projects. This executive summary discusses a funding arrangement by interlocal agreement between Monroe County and the Florida Keys Aqueduct Authority and is a follow-up to Bob Feldman's earlier memorandum to you. FKAA staff, in consultation with Monroe County and affected municipal officials, has developed a proposed interlocal agreement, a four-year budget and necessary implementing documents to create a series of municipal service taxing units which could fund start-up wastewater project costs in specific areas of Monroe County. These municipal service taxing units would only be in place for four (4) years with a limited millage autlDrization necessary to fund expected budgets for each area. The revenues collected in each area would also only be spent on each area's pro-rata portion of the FKAA four-year budget for administration, planning and project development. It is important to understand that the limited funding source proposed only creates limited start-up funding for four (4) years and is based upon ad valorem taxes on all properties in only the areas identified. The budgets do not pay for substantial final engineering, construction and other project costs which must be paid for by State and Federal grants and ultimately by rates, fees and charges (including non-ad valorem special assessments) imposed on the benefited end use over a twenty to twenty-five (20- 25) year period. Executive Summary November 4, 2002 Page 2 CONSIDERATIONS Community Challenge The FKAA provides potable water treatment and distribution throughout the Florida Keys and has embarked upon, with State and County encouragement, provision of central wastewater services, facilities and programs tlroughout Monroe County. The FKAA is faced with severe limitations in developing a viable initial funding source for wastewater and reclaimed water projects. Clearly the FKAA has the power to create water and wastewater utilities, impose rates, fees and charges, and issue revenue bonds for such projects. However, the initial administration, planning and development of these projects is problematic in that, notwithstanding the authorizations and powers available to the FKAA, it has no interim revenue source or "general fund" to underwrite these start-up costs. The FKAA is also faced with the problem that it has several potential projects throughout the Florida Keys which merit attention from an administration, planning and development standpoint. Finally, the FK.AA is prohibited by its charter from cross collateralizing such activities with water revenues. In other words, the FKAA is prohibited from funding administration, planning and development for wastewater and reclaimed water projects from its water utility revenues. Creating Limited Funding Source For Start-Up Costs In order to address this start-up funding issue, the FK.AA and Monroe County propose to enter into a cooperative interlocal agreement to develop a limited funding source for administration, planning and development of wastewater and reclaimed water projects. The limited funding source is the creation of several "municipal service taxing units" which can- be created only by a county for specifically identified service areas within both the unincorporated and incorporated areas of the county. Municipal service taxing units are authorized by Section 125.01(I)(q), Florida Statutes, and allows counties to levy additional taxes, within the limits fixed for municipal purposes, within such municipal service taxing units under the authority of the second sentence of Section 9(B), Article VII of the State Constitution. No referendum is required for levy by a county of ad-valorem taxes for the provision of municipal services within any municipal ~rvice taxing unit. Description Of A Municipal Service Taxing Unit (MSTU) A municipal service taxing unit is not constitutionally nor functionally a special district or separate local government. It is purely a mechanism by which a county can Executive Summary November 4, 2002 Page 3 fund a particular service from the levy of ad-valorem taxes, not countywide, but within a specific service area or portion of the county. A municipal service taxing unit is a tax equity tool available to a Board of County Commissioners to, in specific instances, assure that funds derived from any such levy are in fact used to supply the contemplated municipal services within the boundaries of the municipal service taxing unit area. To the extent that any municipal taxing service unit encompasses an incorporated area, the affected municipality would have to also consent by ordinance. Because the municipal service taxing unit would impose an ad- valorem levy, all properties, not just improved properties, would participate in sharing the initial costs of administering, planning and developing wastewater projects. This approach more broadly shares the costs of project development for which all property owners will benefit, but subsequently shifts the burden to improved property owners when the wastewater and reclaimed water utilities are put in place. When the proposed municipal service taxing unit service areas are not within the boundaries of existing special districts or other taxing authorities, the proposed interlocal agreement and ordinances creating the municipal service taxing units have to be adopted prior to the end of this calendar year in order to begin to generate revenues in November 2003. Interlocal Agreement Facilitating Funding Attached is an interlocal agreement between Monroe County and FKAA that provides that FKAA must identify specific budgets and commits FKAA to expend funds provided by the County (which will be collected from the municipal service taxing units) only on the budgets, or pro-rata portion thereof, for the municipal service taxing units' areas from which they were collected. The interlocal agreement provides the form of necessary ordinance to create each municipal service taxing unit and the form of any ordinance necessary for municipal consent. To develop the proposed funding source for the FKAA to administer, plan and develop wastewater and reclaimed water projects, the FKAA would identify the specific service areas or projects, determine taxable values and identify the necessary millage to fund administrative, planning and development costs. Pursuant to the interlocal agreement between the FKAA and the County, the FKAA is required to identify a four- year budget for each municipal service taxing unit or proposed wastewater service area. The municipal service taxing unit would generate funds which the County would pay over to the FKAA to fund this portion of the budget and the FKAA would be responsible Executive Summary November 4, 2002 Page 4 for expending such funds only in the municipal service taxing unit area from which they were collected. This process would only fP on for four years until each project had been fully developed and was yielding a revenue stream from the wastewater and or reclaimed water facilities which would support the necessary revenue bond financing. At that point the municipal service taxing unit would no longer be funded and will terminate. All monies collected would be monies that would otherwise need to be recovered in the form of a special assessment or through rates upon project completion. Accordingly, the ad valorem taxes imposed through the municipal service taxing unit regime in each area will offset the total project costs only for that area. Once any project is completed and begins to yield a monthly revenue stream, the interlocal agreement provides that taxes collected from each parcel thereafter would be credited to either the affected parcels' monthly account or otherwise reduce special assessments imposed on each affected parcel for each wastewater project. In no event would the municipal service taxing unit continue beyond the four-year period. Finally, because the interlocal agreement requires the determination of the millage amount necessary to fund the pro- forma four-year budget, the millage amount will not increase during the four year duration of the municipal service taxing unit. First Four Municipal Service Taxing Units Assuming the FKAA and Monroe County desire to create supplemental and start- up funding sources in the form of municipal service taxing units pursuant to the interlocal agreement, also attached are the first four proposed municipal service taxing ordinances. (1) Conch Key Municioal Service Taxing Unit. Pursuant to the interlocal agreement, the FKAA has developed its projected four-year budget to provide administration, planning and project development of wastewater and reclaimed water projects for the Conch Key area. The Conch Key area is identified in the attached ordinance. The imposition of 0.70 mil (also expressed as 70 cents per $1,000 of taxable value) by and through the Conch Key Municipal Service Taxing Unit will be required for Monroe County to annually fund at least $8,000 under the proposed budget required by the interlocal agreement. Pursuant to the interlocal agreement, all monies collected by Monroe County pursuant to the 0.70 mil imposed will be paid to FKAA each year as those ad valorem revenues are paid over to the County by the tax collector during the months of November through April. All monies received by FKAA from Monroe County under the interlocal agreement that are derived from the Conch Key Municipal Service Taxing Unit area are required to be expended by FKAA in providing municipal services (in the form of Executive Summary November 4, 2002 Page 5 administration, planning and project development) for the Conch Key Municipal Service Taxing Unit area. Overall such funds will lessen the cost of wastewater and reclaimed water assessments as they will buy down and pay for administration, planning and project development costs which otherwise would be recovered from future rates, fees or special assessments. Pursuant to the interlocal agreement, the Conch Key Municipal Service Taxing Unit area and the millage imposed will automatically terminate and cease after four years of revenue generation. Attached is the proposed four-year budget and ordinance creating the Conch Key Municipal Service Taxing Unit. The ordinance must be adopted prior to the end of 2002 in order to generate revenue beginning in November 2003. (2) Bav Point Municipal Service Taximz Unit. Pursuant to the interlocal agreement, the FKAA has developed its projected four-year budget to provide administration, planning and project development of wastewater and reclaimed water projects for the Bay Point area. The Bay Point area is identified in the attached ordinance. The imposition of 0.49 mil (also expressed as 49 cents per $1,000 of taxable value) by and through the Bay Point Municipal Service Taxing Unit will be required for Monroe County to annually fund at least $25,000 under the proposed budget required by the interlocal agreement. Pursuant to the interlocal agreement, all monies collected by Monroe County pursuant to the 0.49 mil imposed will be paid to FKAA each year as those ad valorem revenues are paid over to the County by the tax collector during the months of November through April. All monies received by FKAA from Monroe County under the interlocal agreement that are derived from the Bay Point Municipal Service Taxing Unit area are required to be expended by FKAA in providing municipal services (in the form of administration, planning and project development) for the Bay Point Municipal Service Taxing Unit area. Overall such funds will lessen the cost of wastewater and reclaimed water assessments as they will buy down and pay for administration, planning and project development costs which otherwise would be recovered from future rates, fees or special assessments. Pursuant to the interlocal agreement, the Bay Point Municipal Service Taxing Unit area and the millage imposed will automatically terminate and cease after four years of revenue generation. Attached is the proposed four-year budget and ordinance creating the Bay Point Municipal Service Taxing Unit. The ordinance must be adopted prior to the end of 2002 in order to generate revenue beginning in November 2003. Executive Summary November 4, 2002 Page 6 (3) Bil! CODDitt MuniciDal Service Taxing Unit. Pursuant to the interlocal agreement, the FKAA has developed its projected four-year budget to provide administration, planning and project development of wastewater and reclaimed water projects for the Big Coppitt area. The Big Coppitt area is identified in the attached ordinance. The imposition of 0.78 mil (also expressed as 78 cents per $1,000 of taxable value) by and through the Big Coppitt Municipal Service Taxing Unit will be required for Monroe County to annually fund at least $124,000 under the proposed budget required by the interlocal agreement. Pursuant to the interlocal agreement, all monies collected by Monroe County pursuant to the 0.78 mil imposed will be paid to FKAA each year as those ad valorem revenues are paid over to the County by the tax collector during the months of November through April. Executive Summary November 4, 2002 Page 7 All monies received by FKAA from Monroe County under the interlocal agreement that are derived from the Big Coppin Municipal Service Taxing Unit area are required to be expended by FKAA in providing municipal services (in the form of administration, planning and project development) for the Big Coppitt Municipal Service Taxing Unit area. Overall such funds will lessen the cost of wastewater and reclaimed water assessments as they will buy down and pay for administration, planning and project development costs which otherwise would be recovered from future rates, fees or special assessments. Pursuant to the interlocal agreement, the Big Coppitt Municipal Service Taxing Unit area and the millage imposed will automatically terminate and cease after four years of revenue generation. Attached is the proposed four-year budget and ordinance creating the Big Coppitt Municipal Service Taxing Unit. The ordinance must be adopted prior to the end of 2002 in order to generate revenue beginning in November 2003. (4) Marathon Municipal Service Taxing Unit. Pursuant to the interlocal agreement, the FKAA has developed its projected four-year budget to provide administration, planning and project development of wastewater and reclaimed water projects for the Marathon area. The Marathon area is identified in the attached ordinance. The imposition of 0.77 mil (also expressed as 77 cents per $1,000 of taxable value) by and through the Marathon Municipal Service Taxing Unit will be required for Monroe County to annually fund at least $875,000 under the proposed budget required by the interlocal agreement. Pursuant to the interlocal agreement, all monies collected by Monroe County pursuant to the 0.77 mil imposed will be paid to FKAA each year as those ad valorem revenues are paid over to the County by the tax collector during the months of November through April. All monies received by FKAA from Monroe County under the interlocal agreement that are derived from the Marathon Municipal Service Taxing Unit area are required to be expended by FKAA in providing municipal services (in the form of administration, planning and project development) for the Marathon Municipal Service Taxing Unit area. Overall such funds will lessen the cost of wastewater and reclaimed water assessments as they will buy down and pay for administration, planning and project development costs which otherwise would be recovered from future rates, fees or special assessments. Pursuant to the interlocal agreement, the Marathon Executive Summary November 4, 2002 Page 8 Municipal Service Taxing Unit area and the millage imposed will automatically terminate and cease after four years of revenue generation. Attached is the proposed four-year budget and ordinance creating the Marathon Municipal Service Taxing Unit and the consenting ordinance from the City of Marathon. So long as the Marathon Municipal Service Taxing Unit includes all of the incorporated area of Marathon this municipal service taxing unit could be created and consented to by ordinance as late as June. Otherwise, like the other newly created taxing units, the ordinances must be adopted prior to the end of 2002 in order to generate revenue beginning in November 2003. RECOMMENDA TIONS (1) Recommendation: That the Monroe County Board of Commissioners and the Board of Directors of the Florida Keys Aqueduct Authority enter into the interlocal agreement before the end of the calendar year. (2) Recommendation: Pursuant to the lnterlocal Agreement, the Monroe County Board of Commissioners adopt, prior to year end, ordinances establishing and creating: (A) Conch Key Municipal Service Taxing Unit (B) Bay Point Municipal Service Taxing Unit (C) Big Coppitt Municipal Service Taxing Unit (D) Marathon Municipal Service Taxing Unit* * The Ordinance establishing and consenting to the Marathon Municipal Service Taxing Unit also requires municipal consent by ordinance and is attached as well. Attachments: ( 1) proposed lnterlocal Agreement (2) proposed four year budget(s) (3) proposed ordinance creating Conch Key Municipal Service Taxing Unit (4) proposed ordinance creating Bay Point Municipal Service Taxing Unit (5) proposed ordinance creating Big Coppitt Municipal Service Taxing Unit (6) proposed ordinance creating Marathon Municipal Service Taxing Unit (7) proposed municipal ordinance consenting (Marathon only Attachments 1 and 3 through 7 Left out by intent Document 1 11/251023:09 PM ATTACHMENT (2) PROPOSED FOUR YEAR BUDGET(S) ---..---- - -- .....-- $ 1.017.311.719 114'110 $ 1.017.311.719 88'110 7.605 7.'110 Illg CllIlPitI 1~.899,67. 12'110 1~,899.67. 12'110 2.215 21'110 bay IIOIIlI 41,433.529 3'110 0'110 .31 4'110 conc:h key 10.975,338 1'110 0'110 80 1'110 1,21.,620.260 100'll0 1.162211.393 100'110 10.331 100'110 ..... - ..... 8Iloc8DIe__ 2lIU 2004 2005 20llI 2007 IIllIII baM _. --- I 4Il,2OO $ 492.000 $ 517.000 $ 543.000 $ 570,000 $ 2,122.000 --,---- t05.llllll 108.000 111.000 114,000 117.000 450,000 -- .,IlOO 21.000 22.000 23,000 24,000 90.000 __ Mid.... carwac::II* ....... 70,IlOO 72.000 74,000 76,000 78.000 300.000 ....~adiI._.....A...... t2l,1OG 129.000 132,000 135,000 138.000 534.000 mamhonlbig coppltt eng/lega' 205 lOG 210.000 215.000 220.000 226.000 871.000 I 1M.200 $ 1.032,000 $ 1.071.000 $ 1.111.000 $ 1.153,000 $..367,000 -~ 2004 2005 2OD6 2007 IIItaI ba.. c:oa. --- $ .'3.000 $ .34.000 $ 457,000 $ 479,000 $ 1.783.000 --.--....- 91,000 94.000 96,000 98.000 379,000 -- 17,000 18,000 19,000 20,000 74,000 ----- 60,000 62.000 64.000 66.000 252.000 DIMf' prqecI8CIfr_""" ...... 109,000 111,000 11..000 116.000 450.000 additional engineering and leva' 185,000 189.000 194.000 199.000 767.000 S 875.000 S 908.000 S 944.000 S 978.000 S 3.705.000 bIG CODDItt 2004 200S 2006 2007 IIllIII baM c:oa. --- S 59.000 S 62.000 S 65.000 S 68,000 S 254,000 ,... a1r'UClUrW:. fIne~ 8nd eudrt 13.000 13.000 14.000 14.000 54.000 - 3.000 3,000 3,000 3,000 12,000 eegat ena 0ftIr ~ MfWIM 9.000 9.000 9,000 9.000 36.000 .... prqM:I.om..~......, 15.000 16,000 16.000 17,000 64.000 additional engin..ring and legal 25.000 26.000 26.000 27.000 104.000 S 124.000 S 129.000 S 133.000 S 138.000 S 524.000 --in! 2004 2005 2006 2007 IIllIII ba.. coete --- S 15,000 S 16.000 S 16.000 S 17 ,000 S 64.000 --.---- 3,000 3.000 3.000 4.000 13,000 -- 1.000 1.000 1.000 1.000 4.000 ----- 2.000 2.000 2.000 2.000 8.000 .., 1I"CIfMI..6._~~, ..000 4.000 4.000 4,000 16.000 additional engineering and Iage' - - - S 25.000 S 26.000 S 26.000 S 28.000 S 105.000 conch kev 2004 200S 2006 2007 IIIlaI ba.. coe. --- S 5,000 S 5.000 $ 5.000 S 6.000 $ 21,000 __.fine___ 1.000 1.000 1,000 1.000 4,000 -- - --....,--~ ...... 1.000 1.000 1.000 1,000 ..000 --- 1.000 1.000 1.000 1.000 .,000 additional engineering and leva' - S 8.000 S 8.000 S 8.000 S 9.000 S 33.000 ORDINANCE NO._ AN ORDINANCE OF MONROE COUNTY. FLORIDA, CREATING THE CONCH KEY MUNICIPAL SERVICE TAXING UNIT LOCATED WITHIN THE UNINCORPORATED AREA OF MONROE COUNTY, FLORIDA, TO PROVIDE WASTEWATER AND RECLAIMED WATER SERVICES AND FACILITIES; DEFINING THE BOUNDARIES OF THE UNIT; AUTHORIZING THE BOARD TO ANNUALLY LEVY AD VALOREM TAXES WITHIN THE BOUNDARIES OF SUCH UNIT NOT TO EXCEED 0.70 MIL; AUTHORIZING THE USE OF THE TAX REVENUE FOR ENUMERATED PURPOSES; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY. FLORIDA THAT: SECTION I. TITLE. This ordinance may be cited as the Conch Key Municipal Service Taxing Unit. SECTION 2. AUTHORITY AND PURPOSE. (A) This Ordinance is enacted under the authority of Anicle VlIl, section 1, Florida Constitution, and sections 125.01 and 125.66. Florida Statutes. The Board of County Commissioners (the "Board") of Monroe County, Florida. has all powers of local self-govc:mment to perform county and municipal functions and to render services in a manner not inconsistent with general law and such power may be exercised by the enactment of county ordinances and resolutions. The: Board is the governing body of the unit. (B) Section 125.01 (1)(q), Florida Statutes, provides specific legislative authorization for counties to establish a municipal service taxing unit for any pan or all of the unincorporated arcas within its boundaries, or within the municipal boundaries of an incorporated area upon consent of the governing body of such municipality, within which may be provided essential facilities and services. (C) The purpose of this Ordinance is to create a municipal service taxing unit to fund the provision of municipal services associated with the administration, planning and development of wastewater and reclaimed water projects within the municipal service taxine unit as generally described in Section 3 of this Ordinance. This Ordinance shllll be liberally construed to effect the PUJl)Oses hereof. (D) The Board is authorized to enter into interlocal agreements with the FKAA to carry out the District. SECTION 3. CREA nON OF MUNICIPAL SERVICE TAXING UNIT. (A) Pursuant to the provisions of section 12S.01(l)(q), Florida Statutes, there is hereby created a municipal service taxing unit for that portion of the unincorporated areas of the County. Such mW1.icipal service taxing unit shall be known as the Conch Key Municipal Service Taxing Unit. (8) The boundaries of Conch Key Municipal Service Taxing Unit are more panicularly described in Exhibit A hereto and same are incorporated by reference. (C) From time to time the Board may by resolution take any action not inconsistent with this Ordinance or the lnterlocal Agreement to assist the Authority in funding the administration, planning and development of wastewater and reclaimed water projects within and benefiting the Conch Key Municipal Service Taxing Unit. SECTION 4. AUTHORIZATION OF AD VALOREM TAXES. (A.) The Board is hereby authorized, in the manner and ullckr the authority provided by section 12S.01(I)(q) and (r), Florida Statutes, to levy and collect additional ad valorem taxes at a millage rate not to exceed 0.10 mil upon real and personal propeny within the Conch Key Municipal Service Taxing Unit commencing with County fiscal year 2003-2004. (B) The collection of ad valorem taxes as authorized herein shall cease after four (4) consecutive fiscal years and the Conch Key Municipal Service Taxing Unit shall tenninate at the end ofCOWlty fiscal year 2007 -2008, SECTION s. USE OF REVENUE; IMPLEMENT A TION. (A) Revenues derived from ad valorem taXes levied within the Conch Key Municipal Service Taxing Unit pursuant 10 Section 4 shall be used solely to pay for and provide funding for administration, planning and development costs associated with and incurred in advancing of wastewater and reclaimed water projects within and benefiting the Conch Key MWlicipal Service Taxing Unit. (B) The Board shall adopt a budget for the Conch Key Municipal Service Taxing Unit for the fiscal year beginning October 1,2003, and each year thereafter. lit the same time and in the same manner as the County budget. Such budget shall contain all or such p<mions of the costs incurred and planned in conjWlction with the funding of municipal services contracted to be provided by the Authority under the Interlocal Agreement. SECTION 6. SEVERABILITY. conjunction with the funding of municipal services contracted to be provided by the Authority under the Intcrlocal AiRc:ment. SECTION 6. SEVERABILITY. Should any provision of this Ordinance be declared by a coun of competent jurisdiction to be invalid. the same sball not affect the validity of this Ordinance as a whole. or any part thereof. other than the pan declared to be invalid. SECTION 7. CONFLICT WITH OTHER ORDINANCES All ordinances or parts of ordinances 1 conflict with this ordinance arc hereby repealed to the extent of said conflict. SECTION 8. INCLUSION IN THE CODE OF ORDINANCES The provisions of this ordinance shall be included and incorporated in the Code of Ordinances of the County of Monroe, Florida, as an addition or amendment thereto. and shall be appropriately renumbered to conform to the uniform numbering system of the code. SECTION 9. EFFECTIVE DATE. (A) This Ordinance shall be filed with the Department of State prior to January 1.2003. (B) After enactment by the Board. this Ordinance shall then take effect upon the filing with the Department of State as provided in section 1~5.66(2), Florida Statutes. PASSED AND ADOPTED by the Board of County Commissioners, Monroe Coun~, Florida at a regular meeting of said Board held on this - day of Deceml>er 2002. Mayor Dixie Spehar Mayor Pro Tern Murray Nelson Commissioner "Sonny" McCoy Commissioner George Nugent Commissioner David P. Rice BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA (SEAL) By: Mayor/Chairperson Danny Kolhage, Clerk APPROVED AS TO FORM ___ ANp. u:t?.../ ~ SUFlJCIENSY.' I. // i/~ B Y\ -..LA -----t' ~ / ~. Attorney's Ofrk~ By: Deputy Clerk Ordinance Creating Marathon MSTU MONROE COUNTY, FLORIDA ORDINANCE NO. AN ORDINANCE OF MONROE COUNTY, FLORIDA, CREATING THE MARATHON MUNICIPAL SERVICE TAXING UNIT LOCATED WITHIN MONROE COUNTY, AND THE INCORPORATED AREA OF THE CITY OF MARATHON, FLORIDA, TO PROVIDE WASTEWATER AND RECLAIMED WATER SERVICES AND FACILITIES; DEFINING THE BOUNDARIES OF THE UNIT; AUTHORIZING THE BOARD TO ANNUALLY LEVY AD VALOREM TAXES WITHIN THE BOUNDARIES OF SUCH UNIT NOT TO EXCEED 0.77 MIL; AUTHORIZING THE USE OF THE TAX REVENUE FOR ENUMERATED PURPOSES; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA THAT: SECTION 1. TITLE. This ordinance may be cited as the Marathon Municipal Service Taxing Unit. SECTION 2. AUTHORITY AND PURPOSE. (A) This Ordinance is enacted under the authority of Article VIII, Section I, Florida Constitution, and Sections 125.01 and 125.66, Florida Statutes. The Board of County Commissioners (the "Board") of Monroe County, Florida, has all powers of local self-government to perform county and municipal functions and to render services in a manner not inconsistent with general law and such power may be exercised by the enactment of county ordinances and resolutions. (B) Section 125.01(1)(q), Florida Statutes, provides specific legislative authorization for counties to establish a municipal service taxing unit for any part or all of the unincorporated areas within its boundaries, or within the municipal boundaries of an incorporated area upon consent of the governing body of such municipality, within which may be provided essential facilities and services. (C) The purpose of this Ordinance is to create a municipal service taxing unit to fund the provision of municipal services associated with the administration, planning and 13 Ordinance Creating Marathon MSTU development of wastewater and reclaimed water projects within the municipal service taxing unit as generally described in Section 3 of this Ordinance. This Ordinance shall be liberally construed to effect the purposes hereof. (D) This Ordinance is adopted to fulfill the obligation of the Board under an Interlocal Agreement by and between the Board and the Florida Keys Aqueduct Authority (the "Authority") to provide limited funding source for the reimbursement and provision of municipal services relating to administration, planning and development of wastewater and reclaimed water projects (the "lnterlocal Agreement"). SECTION 3. CREATION OF MUNICIPAL SERVICE TAXING UNIT. (A) Pursuant to the provisions of section 125.01 (1)( q), Florida Statutes, there is hereby created a municipal service taxing unit for that portion of the County within the incorporated area of the City of Marathon. Such municipal service taxing unit shall be known as the Marathon Municipal Service Taxing Unit. All matters concerning such municipal service taxing unit shall be governed by the Board. (B) The boundaries of the Marathon Municipal Service Taxing Unit are also described in Exhibit A hereto and same are incorporated by reference. (C) From time to time the Board may by resolution take any action not inconsistent with this Ordinance or the Interlocal Agreement to assist the Authority in funding the administration, planning and development of wastewater and reclaimed water projects within and benefiting the Marathon Municipal Service Taxing Unit. SECTION 4. AUTHORIZATION OF AD VALOREM TAXES. (A) The Board is hereby authorized, in the manner and under the authority provided by section 125.01(1)(q) and (r), Florida Statutes, to levy and collect additional ad valorem taxes at a millage rate not to exceed 0.77 mil upon real and personal property within the Marathon Municipal Service Taxing Unit commencing with County fiscal year 2003-2004. The foregoing millage limitation shall not be increased without the City Council of the City of Marathon first adopting an ordinance consenting thereto. (B) The collection of ad valorem taxes as authorized herein shall cease after four (4) consecutive fiscal years and the Marathon Municipal Service Taxing Unit shall terminate at the end of County fiscal year 2007-2008. SECTION S. USE OF REVENUE; IMPLEMENTATION. (A) Revenues derived from ad valorem taxes levied within the Marathon Municipal Service Taxing Unit pursuant to Section 4 shall be used solely to pay for and 2 Ordinance Creating Marathon MSTU provide funding for administration, planning and development costs associated with and incurred in advancing of wastewater and reclaimed water projects within and benefiting the Marathon Municipal Service Taxing Unit. (B) The Board shall adopt a budget for the Marathon Municipal Service Taxing Unit for the fiscal year beginning October 1,2003, and each year thereafter, at the same time and in the same manner as the County budget. Such budget shall contain all or such portions of the costs incurred and planned in conjunction with the funding of municipal services contracted to be provided by the Authority under any interlocal agreement. SECTION 6. SEVERABILITY. Should any provision of this Ordinance be declared by a court of competent jurisdiction to be invalid, the same shall not affect the validity of this Ordinance as a whole, or any part thereof, other than the part declared to be invalid. SECTION 7. CONFLICT WITH OTHER ORDINANCES. All ordinances or parts of ordinances in conflict with this Ordinance are hereby repealed to the extent of said conflict. SECTION 8. INCLUSION IN THE CODE OF ORDINANCES. The provisions of this Ordinance shall be included and incorporated in the Code of Ordinances of the County of Monroe, Florida, as an addition or amendment thereto, and shall be appropriately renumbered to conform to the uniform numbering system of the code. SECTION 9. EFFECTIVE DATE. (A) The effectiveness of this Ordinance shall be subject to the City Council of the City of Marathon adopting an ordinance consenting to the inclusion of the incorporated areas of the City of Marathon within the boundaries of the Marathon Municipal Service Taxing Unit. (B) This Ordinance shall be filed with the Department of State prior to January 1,2003. (C) After enactment by the Board, this Ordinance shall be filed with the Department of State as provided in section 125.66(2), Florida Statutes. [Remainder of page intentionally left blank.] 3 Ordinance Creating Marathon MSTU PASSED AND ADOPTED by the Board of County Commissioners, Monroe County, Florida at a regular meeting of said Board held on this _ day of December 2002. Mayor Charles "Sonny" McCoy Mayor Pro Tempore Dixie Spehar Commissioner George Nugent Commissioner Umberto "Bert" Jimenez Commissioner Murray Nelson BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA (SEAL) By: Mayor/Charrperson Danny Kolhage, Clerk By: Deputy Clerk 4