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Item O4BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 15 October 2003 Division: Growth Management Bulk Item: Yes No X 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 X AMOUNT Per Month Year APPROVED BY: County Atty NA O DIVISION DIRECTOR APPROVAL: DOCUMENTATION: DISPOSITION: Risk Management Timothy McG rY—,Dir`6cf of Grow t Man 11ht Included X To Follow Not Require AGENDA ITEM NO.: ` BC031060 09/25/03 4:32 PM Memorandum Department of Marine Resources 2798 Overseas Highway, Suite 420 Marathon, Florida 33050 Voice: (305) 289 2507 FAX: (305) 289 2536 Email: ag rrett-george(c-L)monroecounty-fl com DATE: 6 October, 2003 TO: Board of County Commissioners FROM: George Garrett, Director of Marine Resources Board of County Commissioners Mayor Dixie Spehar, Dist. 1 Mayor Pro Tern Murray Nelson, Dist. 5 Commissioner George Neugent, Dist. 2 Commissioner Charles -Sonny- McCoy, Dist. 3 Commissioner David Rice, Dist. 4 SUBJECT: Staff Update Report (# 10-03) on Wastewater Master Plan Implementation Issues 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 2. The staff of the Florida Keys Aqueduct Authority will be on hand at the October Commission meeting to update the Board on progress to date. The FKAA staff report for September 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: Approximately $1.0 M is still in the Senate Appropriations package under the Florida Keys Water Quality Improvements Act of 2000 Authorization. However, the House has made no recommended appropriation. As Congress comes to a close it will be important to track this potential funding and to ensure that the Senate approves the $ 1.0 M and that the House adjusts to match the Senate version in conference this fall (October). The State is putting together information concerning current funding commitments and future needs towards a concerted effort to lobby appropriate congressional delegates. Apparently several members of the Cabinet have become extremely interested as well and may assist in solidifying funding proposals for this year, or with luck, in bringing in additional commitments. BC031061 10/06/03 2:17 PM 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 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: All projects are moving forward. No specific report this month. 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: FEMA has provided its Draft Final Supplemental Environmental Assessment documents for Baypoint and Key Largo. With the finalization of these efforts and pending public hearings on Baypoint, bid documents for both Conch Key and Baypoint should go out with the next month. 2 Other Grant Opportunities: 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: At the request of the Mayor and the concurrence of the Commission at the October 151h meeting, CDBG funds will be utilized exclusively on Stock Island. Based on currently staff estimates, the potential number of low and very low income applicants for assistance on paying connection fees and in making on -site improvements will exceed the funds allocated at this point. Thus, the commitment of these funds on Stock Island is appropriate. In addition, the other three projects currently underway (Baypoint, Conch Key, and Key Largo) will not require commitment of funds for approximately another 18 months. Thus there is no current conflict in funding priorities between projects. 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 in the October / November time frame with the second following at the end of November. The application will be filed in early November and the grant will be awarded approximately three months later, sometime in February. 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 None at this time 3 Recommended BOCC Action: o None at this time. Significant Future Milestones/Actions: o Must hold two public hearings in support of the Knucklehead's CDBG application [Target Date: October / November] WASTEWATER GOVERNANCE 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 KLWTD. The County is working with the FKAA on projects on Conch Key, Baypoint, and Big Coppitt. Update: The FKAA has bee requested by the Commission to move forward on an additional project in Big Coppitt. They will produce a Request for Bids on a design / build project for Rockland, Big Coppitt, and Geiger Key. In addition, the FKAA has indicted in a letter to the County wastewater liaison, that they would be willing to step in for the Public Service Commission in its oversight of KW Resort Utility should the County request it. 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 (KLWTD) 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. 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: 0 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 County has placed and item on the October agenda related to its funding percentage for federal funds under the Florida Keys Water Quality Improvement Act of 2000. The item would separate funds received through Congress into Key Largo projects and project in other unincorporated portions of the County. The percentage, based on the number of remaining EDUs to be provided service is 51.5 % (Key Largo) VS 48.5 % (other Unincorporated areas). 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: o Consideration of recommended draft programmatic implementation plan prepared by County and FKAA staff. Significant Future Milestones/Actions: o Approval of programmatic implementation plan for the Sanitary Wastewater Master Plan [Target Date: July 2003 Commission meeting] FEMA UNMET NEEDS PROJECTS 5 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. Update: Supplemental Environmental Assessment was held on July 15`h. This will lead to the award of phase II 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. G9 Recommended BOCC Action: o None at this time Significant Future Milestones/Actions: o Completion of FEMA 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: No additional update at this time. Issues That Need to be Addressed: o Complete Project construction bid process and initiate construction contracts Recommended BOCC Action: o None at this time Significant Future Milestones/Actions: o Initiation of construction contracts [Target Date: 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: No additional update at this time. 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: 7 o None at this time Significant Future Milestones/Actions: o Completion of FEMA hearings [Target Date: September 2003] o Initiation of construction contracts [Target Date: September 20031 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 AWT 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: Since the September meeting of the Board, the County Administrator has initiated a process to complete a financial and engineering audit of the work completed by KW Resort Utilities to date. Preliminary information concerning this audit will be presented to the Commission by the auditing firm, URS — Greiner at the October meeting. In addition, an number of additional meetings have been held between the Stock Island Community Association and the individual Commissioners or KW Resort Utility. Though a substantial amount of focus is being placed on this project, until the audit is complete, no substantive decisions can be mad about future direction or cost (if any) to complete the project Issues That Need to be Addressed: o Determination of process for carrying out the Connection Assessment Ordinance o Revision of amendment to the KW Resort Utility contract for administering the connection fees on those wishing to take advantage of the Assessment process Recommended BOCC Action: o Approval of revisions to the KW Resort Utility Contract Significant Future Milestones/Actions: o Determination and implementation of process for carrying out the Connection Assessment Ordinance. o Approval of revisions to the KW Resort Utility Contract [Target Date: September 10, 2003] 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: At its September meeting the BOCC requested that the FKAA complete an RFP for a design / build project on Rockland, Big Coppitt, and Geiger Keys. The County committed $40,000 to the effort which should be complete by the end of the year. Or the early part of 2004. Once reviewed by the Board, the FKAA will be requested to send out the RFP. 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: 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: October -November 2003 BOCC 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 9 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 10 Attachment 1 FKAA September 2003 11 Florida Keys Aqueduct Authority Wastewater Report September — October 2003 Little Venice Wastewater System The contractor continued with the construction of the originally bid wastewater system. • Vacuum Collection System ■ The pipeline construction crossing US 1 has was completed . • Advanced Wastewater Treatment (AWT) Plant ■ Concrete foundation work is ongoing. ■ Preparation of the filter and common wall tank foundations has been completed. ■ Equipment has been delivered and is being installed. Preconstruction activities have been ongoing for the Little Venice Expanded contract. Construction to start up in mid September. City of Marathon FKAA and the City met to discuss the moving forward with a design build operate RFP for the central system. Conch Key The wastewater system design continued during the month. Bay Point The wastewater system design continued during the month. Key Largo Trailer Village and Key Largo Park No activity by FKAA. 12 Attachment 2 List of Achievements 13 AVAILABLE FUNDS FOR WASTEWATER 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. 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. o Attendance or the Board at a meeting with Ileana Ros-Lehtinen's staff to discuss approaches federal wastewater funding. o 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. o Introduction of House Bill 0101 which would create a wastewater / stormwater trust fund to be administered through FDCA. o Contracts approved and signed to move forward on acquiring state funds for North Key Largo Utility and Key West Resort Utility. o County staff provided appropriations requests to Senator Graham and Nelson's offices. The amount of the requested funds was $3,000,000 to initiate priority projects in the coming year. o 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. o The BOCC approved a wastewater assessment ordinance (placement on tax bill) for all areas served by investor -owned utilities sponsored with funding by the County. 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. 14 o MSTUs (Excepting Big Coppitt approved for assessment) — June / July 2003 o Commissioner McCoy made Wastewater Liaison — July 2003 0 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 project. 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, KLWTD, 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 0 Completion of FEMA hearings 15 G. Baypoint (MM 15) 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 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 KLWTD 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 KLWTD 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) o URS — Greiner hjas begun an effort to complete an independent audit of the KW Resort Utility effort. 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. 16 o FKAA has been requested by the BOCC to complete an RFP for completion of a design / build project on Rockland / Big Coppitt / and Geiger Keys EPA DECENTRALIZED WASTEWATER DEMONSTRATION PROGRAM Issues Addressed/Addressed Taken: o Approval of staff recommendations to move forward with the EPA 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. 17 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 15 October 2003 Division: Growth Management Bulk Item: Yes No X 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 X AMOUNT Per Month Year APPROVED BY: County Atty NA O�JB/PurchasiA__ NA Risk Manaeement NA DIVISION DIRECTOR APPROVAL: Timothy Mcq#y, Dir®tor of Growth Mtagelt / DOCUMENTATION: Included To Follow X Not Required ��// DISPOSITION: AGENDA ITEM NO.: BC031060.doc 09/25/03 4:32 PM AGENDA ITEM WITH LATE DOCUMENTATION DIVISION G LQ- 0tV-\ SUBJECT 00 CGXt DATE ITEM WILL BE AVAILABLE [n -L S AGENDA ITEM NUMBER Oct 15 03 12:15p FROM : JERRY WILKINSON Comm. David Rice FAX NO. : 1 305 852 1620 (305) 289-6306 Oct. 15 2003 11:30AM P1 p.2 0, JERRY WILKINSON 38 East Beach Road Tavernier, Florida 33070 jcrry 142(o terranova.net October 14, 2003 Commissioner Dixie Spehar Commissioner George Neugent Commissioner Sonny McCoy Commissioner. David Rice Commissioner Murray Nelson 0 CT 15 2003 Honorable Commissioners: I realize that politics seem to require that everything be divided into political area shares. I guess this means that the municipalities simply have to be divided into proportional shares; however, I am of the opinion that effective use offends (economies of scale) dictate there should be no division of funds. Wastewater construction is no different than any other construction project in that there can be terrific savings in combining numbers of units. It is extremely expensive to construct small projects. Presently Key Largo is looking at a cost of about $18,000 per EDU for 700 EDU's where Ogden previously contracted for about $6,700 per EDU for•the total 13.300 SDI] Key Largo project. The premium paid for a low economy of scale also carries forth to the small treatment customer's monthly payment of Operation and Management costs. A considerable portion of these monthly costs are fixed costs and are proportionally much greater when only a few customers share the costs. This is one reason why Miami -Dade can offer sewer for as low as $20 per month. Presently, small projects like Key Largo's (700 EDU's) are running at about $18,000 per EDU when construction, management and grant administration are summed. At $ 18,000 per EDU, the $100,000,000 will only connect 5,555 connections. On the other hand -and granted that $6,700 is no longer a valid number; $100,000,000 will connect 12,500 1OU's at $8,000 per EDU's. I strongly encourage and recommend that the total funds be used in their most cost efficient manner, i.e. one combined contiguous project - one contracrOr, one engineer and one construction/ administrative manager. In no manner do I suggest, imply or recommend that Key Lugo be this project. Key Largo is the closest to the mainland and the farthest down stream of the coral reef; therefore, should be last. Key Largo nutrient laden waters have already passed most of the coral reef. By the way, according to Volume 11, Appendix C, Exhibit C-3, the island of Key Largo when totaled and Ocean Rccf subtracted, the KLWTD has 13,377 EDU's, And not the estimated 9,279 EDU's as stated in the proposed resolution; however, the maximum, best use and timely use of public funds should be achieved above all. spectfully, rry, Wil inson 305-852-1620 www.keyshistory.org OJ Oct 15 03 12:15p Comm. David Rice (305) 289-6306 Page 1 of 2 p.3 Lundstrom-Tamara From: Andrew Tobin [Tobinlaw@Terranova.net] Sent: Wednesday, October 15, 2003 11:04 AM To: Commissioner Neugent; Commissioner Spehar, Commissioner Rice; Commissioner Nelson; Commissioner McCoy Subject: Fw: Funding Formula — Original Message — From: Andrew Tobin To: Commissioner Neugent ; Commissioner Spehar ; Commissioner Rice; Commissioner Nelson; Commissioner McCoy Cc: Robert Sheets ; Kolhage Dan ; RobertsLJ.im ; parrett,_George ; Andy_Tobin ; Charles. Brooks _(E-mail) ;Chris Beaty ; Gary Bauman ; Jerry Wilkinson Sent: Tuesday, October 14, 2003 2,16 PM Subject: Funding Formula Hon. BOCC Commissioners; I must take issue with the proposed revised funding formula, whereby future appropriations will be allocated 51.5% to KLWWTD, and 48.5% to the remaining unincorporated areas of Monroe County. While the mathematical formula seems fair based on EDU's, it does not square with the reality of operating a new wastewater special district for the simple reason that our District inherited a project (Key Largo Trailer Village/Key Largo Park) with a total of 700 EDUs which is too small to be self supporting. Couple. that with negligent design and delays by Boyle, transition delays with the County/FKAA, impossible grant fund deadlines, federalized grant requirements, i.e, environmental surveys, low and very low income requirements, and the complete lack of engineering and contrator's experience in meeting AWT standards on small systems, and you have a recipe for FAILURE. To sum it up, I am not comfortable starting something without having a plan as to how the District and more importantly its customers (your constituents) will survive with such a small customer base, and without any idea when or if money will become available. The County's proposed revised funding formula contributes to my discomfort. Please understand that until such time as the WW District's customer base is at least 2,500 EDUs we will continue to be a DEPENDENT District, which means that the District will have to rely on the County to make up the difference between revenues and operating costs. The same holds true for expanding the system as we have no experience in obtaining separate funds, and have no desire to compete with Monroe County and Key West for grant funds, presuming that such funds are ever made available. Therefore, I would like to suggest that the SOCC modify the RESOLUTION to reflect reality (ours of course), to wit a) the new funding allocation will not become effective until the Key Largo WW Treatment District becomes self supporting; and b) the BOCC recognizes its continuing obligation to support the District financially until the District has a minimum of 2,500 EDUs. Your support for this amendment will help me to decide whether to go forward with our project or pull the plug now before we start something that we can't finish. Please understand that this is not the official policy of the WW Treatment District, it is my position only. Respectfully yours. 10/15/2003 Oct 15 03 12:16p Comm. David Rice (305) 289-6306 p.4 Page 2 of 2 Andrew Tobin, Chairman cc: All County Commissioners; All District Commissioners; County Clerk, County Manager, County Attorney, District Manager 10/15/2003