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Item O1 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 20 August 2003 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 a 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 and to provide the Commission with further updates on their projects as necessary. PREVIOUS RELEVANT BOCC ACTION: NA CONTRACT/AGREEMENT CHANGES: NA STAFF RECOMMENDATIONS; NA TOTAL COST: NA BUDGETED: Yes No COST TO COUNTY: NA SOURCE OF FUNDS: REVENUE PRODUCING: Yes No ~ AMOUNT Per Month Year APPROVED BY: County Atty NA Risk Management DIVISION DIRECTOR APPROVAL: DOCUMENTATION: Included~ To Follow _ Not Required DISPOSITION: AGENDA ITEM NO.: 0/ BC030830 07/31/039:46 AM Memorandum DeDartment of Marine Resources 2798 Overseas Highway, Suite 420 Marathon, Florida 33050 Voice: (305) 289 2507 FAX: (305) 289 2536 Email: garrett-george(iflmonroeCOUl1ly-tl.COI11 Board of Co un tv Commissioners Mayor Dixie Spehar, Dist I Mayor Pro Tern Murray Nelson, Dist. 5 Commissioner George Neugent, Disl 2 Commissioner Charles "Sonny" McCoy, Dist. 3 Commissioner David Rice, Dist. 4 DATE: 6 August, 2003 TO: Board of County Commissioners George Garrett, Director of Marine Resources ~ Staff Update Report (# 08-03) on wastewate/ Master Plan Implementation Issues FROM: SUBJECT: The following subject matter has now been provided with a brief "background" statement followed by "update" information. The updates will be current to the month since the last BOCC meeting and monthly staff report. Achievements, since they are beginning to add up, have been moved to the end of the staff report as, Attachment 3. The staff of the Florida Keys Aqueduct Authority will be on hand at the August Commission meeting to update the Board on progress to date. The FKAA staff report for August is attached for review (Attachment 1). AVAILABLE FUNDS FOR WASTEWATER Federal Funds - $100 M Congressional Authorization: Background: 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. Update: Congresswoman Ileana Ross-Lehtinen indicates that as much as $1.65 M in funds have been provided in the FY 03-04 Congressional appropriations bill. Relevant bills must pass before both Houses of Congress before funds may become available. The Commission should watch this process. FEMA Funds: Background: In response to damages and losses which occurred as a result of Hurricane Georges, Congress enacted Public Law 106-31, Emergency Supplemental Appropriations Act for Fiscal Year 1999 to fund long term disaster recovery projects in Florida counties BC030831.doc 07/30/03 II :37 AM whose needs were unmet through primary disaster relief funds. Monroe County requested that a substantial amount of the funds made available to it, be utilized for wastewater improvement projects. There are four FEMA wastewater projects in the County, Key Largo Trailer Village, Conch Key, Baypoint, and one project in Islamorada. These projects must be complete by the end of September 2005. Update: FEMA held its Supplemental Environmental Assessment hearing for Conch Key on 15 July 2003. The meeting was attended by approximately 15 individuals. Citizens asked a number of questions about timing and cost, but were generally supportive of the project. Questions arose about the option of providing treatment at the Hawk's Cay site instead of providing a stand-alone facility at Conch Key. FDEP State funding: Background: Pursuant to Specific Appropriation 1765A of the 2002 - 2003 General Appropriations Act (Chapter 2002-334, Laws of Florida), funding in the amount of $ 11.8 million was provided was broken into three categories and may fund either wastewater or stormwater projects. o First, $1.66 million was provided to qualifying projects in Key Largo, Islamorada, Marathon, and Key West. o Second, $200,000 was provided both Layton and Key Colony Beach. o 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 a 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. Update: No additional update this month. All state funded projects are underway or complete. Remaining Cesspool Elimination Funds: Background: Under the Cesspool Identification and Elimination Program (CIEA), funds were provided through four contracts to Monroe County to be used as grants to property owners assist in the cost of upgrading cesspools to approved on-site wastewater nutrient reduction systems (OWNRS). Two to the contracts were utilized to completion and have helped to eliminate cesspools in all areas defined as "Coldspots." These contracts provided approximately $1,000,000 in cesspool replacement grant funds. As the CIEA program is complete in the Coldspot areas at this time, it has been the direction of the Commission to shift remaining funds to other projects where cesspools must be replaced. The remaining contract funds amount to $1,225,600. Update: No additional update this month Other Grant Opportunities: 2 Background: 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. Update: No additional update this month Background: Rick Casey of the Monroe County Housing Authority had been very hopeful of receiving a Community Development Block Grant (CDBG) for approximately $350,000. This request fell through in October but apparently was revitalized in January when one of those agencies awarded funds failed to qualify in the final review. As the County was next in line, apparently the County will be receiving a share of the current grant funds. Staff understands that the amount is substantially more than originally requested, approximately $637,500. Update: Since the April meeting, Mark Bell of Rick Casey's staff at the Housing Authority is beginning a process to contact all property owners on Stack Island to determine their interest and eligibility for CDBG funds. This will happen in the next few weeks as we enter July. It was not accomplished in June. An application for Knucklehead's Restaurant is being developed, in order to go after the additional CDBG funds noted in the BOCC's June wastewater report. The Commission supported a resolution which will allow staff to complete the application process. In addition to the resolution, the CDBG funding application process will require that we hold two public hearings prior to submittal. Mark Bell of the Housing Authority will be responsible for holding the meetings. They area projected to be held at the end of July to early August with the second following at the end of August to early September. The application will be filed in early September and the grant will be awarded approximately three months later, sometime in December. This is a non-competitive grant. Therefore, with a completed and validated application, the County should receive the funding. Receipt ofthis funding will fall in line with the completion of the bid process through the FKAA for construction of the overall Baypoint project. Receipt of the funds will allow Knucklehead's to offset their costs for the initial construction of an on-site wastewater system and then a shift to the Baypoint system. Remaining funds will be utilized to reduce the user cost of connection to the Baypoint wastewater system. Issues That Need to be Addressed o Need to adopt financial assistance criteria for economically disadvantaged households throughout the County. o Need to develop a financial assistance program and the means assessment (placement on tax bill) for all areas served by investor-owned utilities sponsored with funding by the County. Recommended BOCC Action: 3 o Consideration of wastewater assessment ordinance to allow financing of wastewater connection fees through an assessment to be placed on the tax bill.. Significant Future Milestones/Actions: o Decision on wastewater assessment ordinance as recommended by staff. [Target Date: July Commission meetings) o Must hold two public hearings in support of the Knucklehead's CDBG application [Target Date: July-August) WASTEWATER GOVERNANCE FKAA: Background: The FKAA is the County's wastewater authority within unincorporated areas of the County and outside of other wastewater jurisdictions such as the KWRU or KL WTD. The County is working with the FKAA on projects on Conch Key, Baypoint, and Big Coppitt. Update: At the July Commission meeting, the Board gave approved Commissioner McCoy as the new wastewater liaison. He will be working with the FKAA to coordinate on-going and future projects. In particular the Commissioner will be working with the FKAA to determine the best approach to initiating the construction of wastewater facilities on Big Coppitt, Rockland and Geiger Keys. One option involves KW Resort Utility increasing its jurisdictional boundaries to include this area. KW Resort Utility has provided a one page document which provides a general quote assessment for the project and the relative commitment of the parties, KW Resort Utility and the County. FKAA has met with Commissioner McCoy and has provided the attached letter (Attachment 2 A) in response to the possibility that KW Resort Utility would expand their boundaries, therefore requiring the FKAA to relinquish theirs. Discussion regarding this issue are on-gomg. In addition to the issues concerning Big Coppitt, the FKAA has also provided a response (Attachment 2 B) on two other issues raised by Commissioner McCoy at the last BOCC meeting. The first issue involves the possibility of using and expanding the Bluewater RV Park wastewater plant for wastewater improvements in the Baypoint / Saddlebunch Shores area. The second issue involves the possibility of using the Hawk's Cay treatment plant to treat the Conch Key wastewater flow instead of constructing a stand-alone plant on Conch Key. Key Largo Wastewater Treatment District: Background: With its creation in June of 2002 and the election of Board member is November of 2002, the Key Largo Wastewater Treatment District (KL WTD) is currently an independent Utility District. They will need County and FKAA assistance in a transition process over the first six months to one year. 4 Update: No additional update this month Issues That Need to be Addressed: o None at this time Recommended BOCC Action: o None at this time Significant Future Milestones/Actions: o None at this time Inter-governmental Task Force: Background: The Inter-governmental Task Force provides a mechanism for coordinated activities between the County and its municipalities when seeking state and/or federal grant funding for wastewater or stormwater projects in the Florida Keys. Update: The Task Force met on July, 31 2003 introducing Commissioner McCoy as the new liaison to the Task Force from the County. Issues surrounding the funding formula for State and federal funding occupied a significant amount of the time during the meeting. PROGRAMMATIC IMPLEMENTATION PLAN Background: Staff has indicated that it will work to provide a long-range implementation program for wastewater projects. To a limited extent this has happened through the capital budget process and through the efforts on-going with the ACOE to develop projects under the congressional $100M authorization. An integration of all of these components remains to be completed. Update: No additional update this month 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: 5 o Consideration of recommended draft programmatic implementation plan prepared by County and FK.AA staff. Significant Future Milestones/Actions: o Approval of programmatic implementation plan for the Sanitary Wastewater Master Plan [Target Date: July 2003 Commission meeting} FEMA UNMET NEEDS PROJECTS A. General Background: In response to damages and losses which occurred as a result of Hurricane Georges, Congress enacted Public Law 106-31, Emergency Supplemental Appropriations Act for Fiscal Year 1999 to fund long term disaster recovery projects in Florida counties whose needs were unmet through primary disaster relief funds. Monroe County requested that a substantial amount of the funds made available to it, be utilized for wastewater improvement projects. There are four FEMA wastewater projects in the County, Key Largo Trailer Village, Conch Key, Baypoint, and one project in Islamorada. These projects must be complete by the end of September 2005. Update: No additional update this month Issues That Need to be Addressed: o Complete FEMA Supplemental Environmental Assessment hearings Recommended BOCC Action: o None at this time Significant Future Milestones/Actions: o None at this time B. Key Largo Trailer Village (MM 100 +/-) Background: After reduction in the size of the Key Largo wastewater project, staff returned to the original FEMA project list for Key Largo. Key Largo Trailer Village was selected as a prime site in need of wastewater improvements under the guidelines of the FEMA Unmet Needs congressional appropriation. It is a very low-lying area with a large number of unknown wastewater systems. 6 Update: Supplemental Environmental Assessment was held on July 15th. This will lead to the award of phase IT money for the Key Largo Trailer Village project (construction dollars). The Key Largo Wastewater Treatment District will manage phase II dollars entirely. The FKAA will no longer participate upon receipt of these funds. All construction contracts for this project are now signed and upon completion of the FEMA hearings, construction will begin. Issues That Need to be Addressed: o Complete FEMA Supplemental Environmental Assessment hearings. Recommended BOCC Action: o None at this time Significant Future Milestones/Actions: o Completion ofPEMA hearings [Target Date: June/July 2003 KLWTD meetings] C. Conch Key (MM 61) Background: Conch Key was selected as a prime site in need of wastewater improvements under the guidelines of the FEMA Unmet Needs congressional appropriation. It is a very low-lying area with a large number of unknown wastewater systems. Update: FEMA supplemental environmental assessment hearing was held on the 15th of July, completing the FEMA process for Conch Key. Upon completion, phase II construction funds will be provided to the FKAA to complete construction of the project. Some additional staff discussion have ensued concerning the relative costs of construction of the wastewater treatment plant at Conch Key versus the alternative of transmitting the effluent to the plant at Hawk's Cay. At least one meeting with representatives of the Hawk's Cay not-for-profit wastewater corporation has also occurred. Further discussion of this alternative MAY occur if the new comparisons warrant discussion. Issues That Need to be Addressed: o Complete FEMA Supplemental Environmental Assessment hearings. o Complete Project construction bid process and initiate construction contracts Recommended BOCC Action: o None at this time 7 Significant Future Milestones/Actions: o Completion ofFEMA hearings [Target Date: July 2003} o Initiation of construction contracts [Target Date: August-September 2003} D. Baypoint (MM 15) Background: Baypoint was selected as a prime site in need of wastewater improvements under the guidelines of the FEMA Unmet Needs congressional appropriation. It is a very low-lying area with a large number of unknown wastewater systems. Update: FEMA supplemental environmental assessment hearings will be held before the end of August, completing the FEMA process for Baypoint. Upon completion, phase II construction funds will be provided to the FKAA to complete construction of the project. An application for Knucklehead's Restaurant is being developed, in order to go after the additional CDBG funds noted in the BOCC's June wastewater report. The Commission supported a resolution which will allow staff to complete the application process. In addition to the resolution, the CDBG funding application process will require that we hold two public hearings prior to submittal. Mark Bell of the Housing Authority will be responsible for holding the meetings. They area projected to be held at the end of July to early August with the second following at the end of August to early September. The application will be filed in early September and the grant will be awarded approximately three months later, sometime in December. This is a non-competitive grant. Therefore, with a completed and validated application, the County should receive the funding. Receipt of this funding will fall in line with the completion of the bid process through the FKAA for construction of the overall Baypoint project. Receipt of the funds will allow Knucklehead's to offset their costs for the initial construction of an on-site wastewater system and then a shift to the Baypoint system. Remaining funds will be utilized to reduce the user cost of connection to the Baypoint wastewater system. Issues That Need to be Addressed: o Complete FEMA Supplemental Environmental Assessment hearings. o Complete Project construction bid process and initiate construction contracts o Complete Knucklehead's CDBG grant application Recommended BOCC Action: o None at this time Significant Future Milestones/Actions: o Completion ofFEMA hearings [Target Date: July 2003} 8 o Initiation of construction contracts [Target Date: August-September 2003] o Completion of Knucklehead's CDBG grant application [Target Date: early September 2003] KEY WEST RESORT UTILITIES (STOCK ISLAND EXPANSION) Background: In July of 2002, the Commission approved a contract to complete wastewater improvements on south Stock Island through the Key West Resort Utility (KWRU). In December the Commission approved a Resolution requesting that the KWRU begin a process to design and construct improvements to their plant to meet A WT nutrient standards. In January, the Commission heard from a number of property owners concerned about the connection requirements and agreements with KWRU. Staff has been working on those issues with KWRU from that time. Update: On July 15, 2003 KW Resort Utiltiy official opened the new phase of its wastewater facility serving the east side of Stock Island. In attendance at the opening were a number of the County Commissioners. As the wastewater facility began operation, letters went out to property owners asking them to make preparations to connect to the utility. A number of contracts have already been signed. At the July Commission meeting two Ordinances passed, A Uniform Connection Policy Ordinance and a Connection Assessment Ordinance. Through the first, the requirements for connection are more clearly defined for both the utility and the property owner. The Commission requested that this Ordinance be revised to allow the Utility to carry out activities within private streets associated with private residential condominium associations (individually owned and taxed properties) if such associations would grant appropriate easements to the Associations' private streets. Staff is working on a change to the Uniform Connection Ordinance which would provide for this option. The Commission also passed the Assessment Ordinance, which will allow property owners to have their connection fees assessed on their annual tax bill over a 20 year assessment period. This will require a change to the KW Resort Utility contract allowing them to collect only 5 percent of the connection fee at time of connection should the property request the assessment option. It will also require determining the precise approach and staffing requirements to carry out the assessment. Currently the County does not carry out the certification of tax assessment rolls and will need to determine who will do this under the Ordinance. Issues That Need to be Addressed: o Determination of process for carrying out the Connection Assessment Ordinance o Change to Uniform Connection Policy to allow sewer work in private residential communities with individually owned properties and private streets. 9 Recommended BOCC Action: o None at this time Significant Future Milestones/Actions: o Determination and implementation of process for carrying out the Connection Assessment Ordinance. o Change to Uniform Connection Policy to allow sewer work In private residential communities with individually owned properties and private streets. LOWER KEYS WASTEWATER (MM 7.0 TO MM 11.0) Background: Big Coppitt has been the focus of the Commission as the next wastewater project to be undertaken. Update: The FKAA has initiated and completed work to develop engineering design criteria for the Big Coppitt area. A final draft report on the effort is available and has been sent under separate cover to the Commission and others by the FKAA. The findings of the Big Coppitt feasibility study will be discussed at the July joint County/FKAA Board meeting. In general, the report looks at three options for providing sewer facilities in the Big Coppitt, Rockland, Geiger Key area - a single plant on Stock Island (presumed to be placed at KWRU), a single plant at Rockland Key, or three sub-regional plants located within the service area. The relative cost of the alternatives favored the placement of a wastewater treatment plant on Rockland Key with accompanying collection and disposal systems. 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 seek additional funding for the project as the next project in priority from the Sanitary Wastewater Master Plan. o Need to determine whether it is most cost effective for the FKAA to relinquish its wastewater authority on Big Coppitt to potentially allow KW Resort Utility to expand its role into the area. Recommended BOCC Action: o Direct staff to seek funding for the Big Coppitt wastewater project. Significant Future Milestones/Actions: 10 o Determination of the desired wastewater authority (FKAA or KW Resort Utility) for providing wastewater service on Big Coppitt, Rockland, and Geiger Keys. o Consideration of project proposals for wastewater management options on Big Coppitt to determine the preferred wastewater management option. [Target Date: July 2003 HOCC meeting] o Acceptance of grant funds to further develop the Big Coppitt wastewater project. [Target Date: To be determined) OTHER ISSUES Background: From time to time other issues will arise concerning wastewater which do not conform to the format in the rest of the monthly report. They will be placed in this section Update: None since the March 2003 BOCC meeting. Issues That Need to be Addressed: o None at this time Recommended BOCC Action: o None at this time Significant Future Milestones/Actions: o None at this time 11 Attachment 1 FKAA August 2003 12 Florida Keys Aqueduct Authority Wastewater Report July - August 2003 Little Venice Wastewater System The contractor continued with the construction of the originally bid wastewater system. . Vacuum Collection System . The pipeline construction on US 1 has recommenced and a change order to avoid the obstructions in the pipeline route was submitted by DEe. . Advanced Wastewater Treatment (A WT) Plant · Vacuum and pump station concrete foundation is now complete. · Preparation of the filter and common wall tank foundations has been completed. A pre-construction conference was held on 22 July 2003 for the Little Venice Expanded contract. City of Marathon . FKAA and the City met to discuss moving forward with a design build operate RFP for the central system, and phased system. Conch Key . FEMA's public meeting was held on 15 July 2003. . The wastewater system design continued during the month. Bay Point . The wastewater systern design continued during the month. Key Largo Trailer Village and Key Largo Park No activity by FK.AA. 13 Attachment 2A and 2B FKAA Correspondence 14 JUL-30-03 11,02 FROM,FLA KEYS AQUEDUCT AUTH 10,3052863521 PAGE 2/4 Florida Keys Aqueduct Authority POSt Ottice !ox 1239 11 00 Kennedy Drive Key West. Florida 33041.1239 TelephOne (30S) 296.2454 , . ;(/I!":~ .:iF~. . . J 4.;,.'(.. . ....'-:i:;j~:: . . :~/~~ ~. . .~..;;il~':i\',$I.~,'~'.- . 4\1 :~~l:'h-'W" ~:.. '. . "~."'I..e'''''.. . ,,~i~*'" ,,{~)~.; ~:. ' ".~.\':' ~~:~.... .. ..w'$.~~~r . . ..;,:t<iFf/: ~ .)':!l~:J"" St-.- .... t;1tf'II ,J..'" ~ if":~. . J " . Commissioner Sonny McCoy Monroe County Board of County Commissioners 530 Whitehead Street Key W~ Fl 33040 Re: Big Coppitt Key Wastewater Service Area Dear ComlTll~oner McCoy: On Thursday, July 24th. the FKAA Board of Directors met and discussed the concept of Key West Resort Utilities expanding its pSC regulated franchise area on Stock Island to include the Big Coppitt wastewater service area. The position of the FKAA Board ofDirectoIS is to ensure that the most cost-effective wastewater service system available is provided. If it is determined that KWRU is the most cost-effective solution and there are certain technical, financial, and public relations guarantees met, the FKAA Board would not object to KWRU expanding its franchise to Big Coppitt. The FKAA Board would need guarantees for the following items prior to KWRU expanding its franchise area: 1. A guaranteed maximum capital cost 2. Adequate planned public input and public outreach 3. Completion of a pre-design facility report 4. Financial plan indicating all proposed fees and charges 5. Funding commitment by KWRU (approx. $4,250.000.00) 6. 20 year financing of System Development Charges (hook-up fees) 7. Funding commitment by BOCC of project balance (currently estimated at $9,480,000.00) Information regarding the estimated construction COS4 and the funding commitments required of KWRU and Monroe County to make it a viable project was obtained from an estimate prepared by KWRU dated June 30,2003. (copyattached)- It is the understanding of the FKAA that a privately owned utility franchise may not be eligible to receive any of the pending $100 million federal grant when it becomes available. Therefore, unless the county is committed to funding the balance of the Big Coppitt costs for KWRU, the FKAA must ensure that Big Coppitt remains eligible to benefit from Federal grants. ~U~-~~-03 ll'~~ rROM,r~A ~L%~ ......\.oIULUU\...1. ......U.l.M .&.u; ~llU~'..:U:)w::t;..!.l PAGE 3/4 Commissioner Sonny McCoy July 30, 2003 Page 2 1 look forward to meeting with you to discuss the above list in greater detail and to work towards a successful, economical project. Sincerely, AUTHORITY /jr cc: FK.AA Board of Directors Board of Monroe County Conunissioners Jim Roberts. County Administrator Tim McGarry, Director of Growth Management George Garrett. Director of Marine Resources JUL-30-03 11 02 : FROM:FLA KEYS AQUEDUCT AUTH .1 D, 30b~!:::tb3521 KW RESORT UTILITIES RO. Box 2125 . Key West, Florida 33045 : Telephone (305) 29+9578 Facsimile (305) 294..1212 . BIG COPPlTf, ROCKLAND & GEIGER KEYS COST FSJ1MATE JUNE 30,2003 t1 -~ . Collection S)'Btem W~PlaDtAwr & Force Main to South stock Island Surv~ EngineeJing & pemUtting Administration & Legal " SOURCES OF FUNDS .AIea Customers 1100 X $2700 south StoCk islAnd Fonds 1500 X'$21 00 Balance of$6"OOO~OOO Ftmds ($6,000:>000 - $4,200,000 Cost SSl) KW Resort Utilities ContIibution (pbm1 & Force Main) ., Funds to Complete $10,SQO,OOO 4,250,,000 1,000:0000 950,000 $16,700,000 $2,970,000 1,150,000 1,800,000 4,250,000 $1:2,110,000 $4~530,OOO Monthly residential sewer fee currently is $35.89 and will be ex:tended to above customers. PAGE 4/4 ~ . ~ '. .'. . AUG-08-03 08.27 FROM.FLA KEYS AQUEDUCT AUTH ID:3052l:1b~b21 PAGE 2/3 Florida Keys Aqueduct Authority August 4, 2003 Commissioner Charles ..Sormy" McCoy Monroe County Board of County Commissioners 530 Whitehead Street Key West, FI 33040 Re: Bay Point and Conch Key Wastewater Service Areas Dear Commissioner McCoy: Upon your appoin1ment as the County~s Wastewater Liaison at the July meeting of the BOCC, you expressed an. interest in the FKAA taking another look at the Bluewater Trailer Park wastewater treatment plant as an alternative for the Bay Point project Although the BOCC chose the site for the Bay Point wastewater plant. we understand yom preferred option would be to use Bluewater's existing plant instead of constructing a new plant on Bay Point. Please be advised that the design for the Bay Point project is well underway. Although the FKAA is not against exploring the possibility and feasibility of using the Bluewater Plant. doing so may adversely affect the project schedule and add cost to the design of the project. There is concern that the Bluewater's existing plant may not have sufficient capacity. We would be happy to meet with . you to discuss this issue further at your earliest convenience. During the BOCC meeting you also conveyed how important it is to try to use existing wastewater plants when necessary~ especially when there is an opportunity for wastewater reuse. A good example of this is the potential of treating Big Coppitt wastewater at the Key West Resort Utility trea1me:nt plant. Another good example would be the treatment of Conch Key sewage at the existing Hawk~s Cay facility that uses reclaimed wastewater to inigate around the resort. The FK.AA Board of Directors recently gave staff direction to give consideration to the Hawk~ s Cay wastewater treatment plant as an alternative to treating Conch Key wastewater. We have had many Conch Key residents express their dismay that a sewage plant would be constructed near the entrance to their island and have requested the- FKAA reconsider the Hawk's Cay option_ AUG-08-03 08.28 FROM,FLA KEYS AQUEDUCT AUTH ID.3052883521 PAGE 3/3 Commi~oner Sonny McCoy August 4~ 2003 Page 2 Hawk's Cay presents an opportunity for a more economical solution than constructing a stand- alone plant on Conch Key_ We have determined that there is sufficient capacity at the Hawk~s Cay plant, however we are still investigating what the monthly charge would be. It is the intent of the FKAA to bid the project with a stand-alone facility on Conch Key with a bid alternate to constnlct a pipeline to the Hawk~s Cay facility and ultimately choose the most cost-effective option. The Bluewater Trailer park option for Bay Point and the Hawk's Cay option for Conch Key are already approved by FEMA. FEMA bas indicated that these other options may be pursued as long as the project schedules are not delayed further. I look forward to meeting with you to discuss these issues further.i Sincerely, fjr cc: FK.AA Board of Directors Board of Monroe County Commissioners Jim Roberts, COWlty Administrator Attachment 3 List of Achievements 15 AVAILABLE FUNDS FOR WASTEWATER Issues Addressed! Actions Taken a 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. a Approval of staff recommendations for use of remaining FDEP, FDCA, and County funds remaining from cesspit replacement program. a 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. a Approval by the BOCC to provide an additional $156,000 to the FKAA for development of the state funded Key Largo Park wastewater project. a 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. a Submitted a project proposal for Key Largo under the auspices of House Bull 851. a Attendance or the Board at a meeting with Ileana Ros-Lehtinen's staff to discuss approaches federal wastewater funding. a Meeting held with Ileana Ros-Lehtinen's office regarding the most appropriate mechanism to obtain the $ 100 million appropriation. Indication was that the current approach is the best. a Introduction of House Bill 0101 which would create a wastewater / stormwater trust fund to be administered through FDCA. a Contracts approved and signed to move forward on acquiring state funds for North Key Largo Utility and Key West Resort Utility. a County staff provided appropriations requests to Senator Graham and Nelson's offices. The amount ofthe requested funds was $3,000,000 to initiate priority projects in the coming year. a The Commission supported a resolution allowing staff to submit a CDBG grant for Baypoint, using Knucklehead's Restaurant as the focus for receiving the grant. WASTEWATER GOVERNANCE Issues Addressed! Actions Taken o MSTUs advertised and adopted for Conch Key, Marathon, Bay Point, and Big Coppitt o A District Manager (Management Firm - GSG/Robert Sheets), a District Engineer (Boyle Engineering) were hired, and number of Key Resolutions (Rates & Fees and Request for MSTU), were passed by the Key Largo Wastewater Utility District. o Transition agreement approved between the County, FKAA, and the Key Largo Wastewater Utility Board. o MSTU advertised and approved in May at the BOCC meeting for the Key Largo Wastewater Treatment District. o MSTUs (Excepting Big Coppitt approved for assessment) - June / July 2003 o Commissioner McCoy made Wastewater Liaison - July 2003 16 PROGRAMMATIC IMPLEMENTATION PLAN 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. FEMA UNMET NEEDS PROJECTS E. Key Largo Trailer Village (MM 101.5) and Key Largo Park (MM 100.5) 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 proj ect. o Approval of an additional $156,000 in funding for project development at Key Largo Park. o Approval of a revision to the Inter-local Agreement with FKAA to allow direct payment to Boyle Engineering for engineering services on Key Largo Park. o Approval of a joint transition agreement with the FKAA and the Wastewater District on the Key Largo Trailer Village project. o Transition process between the County, FKAA, KL WTD, and FEMA for project management completed. o Project construction bid process and award!signature of construction contracts complete. F. Conch Key (MM 61) 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 o 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 o Held additional workshops (FKAA) with the Conch Key Community in May 2003 G. Baypoint (MM 15) Issues Addressed! Addressed Taken: 17 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 o Baypoint lots 11 and 12 purchased and in County ownership o Held additional workshops (FKAA) with the Baypoint Community in May 2003 KEY WEST RESORT UTILITIES (STOCK ISLAND EXPANSION) 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, allowing multiple payments over a three year period. o Approval of a Resolution for Key West Resort Utility move forward on upgrading its plant to AWT. o Approval of a contract for receipt of state monies to assist in construction on Stock Island. o Funding for contract could not be provided - KWRU could not meet technical requirements under state bid procedure - funds shifted to KL WTD o Connection fees and associated costs through KWRU for connection to the Utility reviewed o Establishment of a Uniform Wastewater Connection policy for Key West Resort Utilities and the rest of the Keys under FKAA and KL WTD authority - what properties are served to what degree, and at who's expense. o Establishment of a tax assessment ordinance which provides the means to finance connection fees for those interested over a protracted period of time (20 years) LOWER KEYS WASTEWATER (MM 7.0 TO MM 11.0) Issues Addressed! Addressed Taken: o Requested $2,000,000 from House Bill 851 funding program. o Approved sending out an RFQ for Engineering services to complete surveYIng, aerial photography, and engineering design work. o BOCC Agreed to hold off on RFQ pending completion of the Big Coppitt feasibility study o Consideration of recommendations of staff on preferred wastewater management options for Big Coppitt. EP A DECENTRALIZED WASTEWATER DEMONSTRATION PROGRAM Issues Addressed! Addressed Taken: 18 o Approval of staff recommendations to move forward with the EP A decentralized grant program. o BOCC agrees to turn down funding and shift match funds to assist in reducing costs as Conch Key and Baypoint OTHER ISSUES Issues Addressed! Addressed Taken: o Revision of ordinance to change Duck Key and Conch Key to "hotspots." Resolutions 39- 2002 and 40-2002. 19