Item O3
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: August 20, 2003
Division: Commissioner McCoy
Bulk Item Yes No ~
Deprurtment: Commissioner McCoy
AGENDA ITEM WORDING:
Approval of a Memorandum of Understanding between Monroe County and the
Florida Keys Aqueduct Authority in reference to Key West Resort Utilities
performing the engineering/survey for the Rocklanq, Big Coppitt and Geiger
Key wa~tp-water proiects and authorization for Mayor to execute same.
ITEM BACKGROUND:
As Liaison for wastewater issues (point person)., Commissioner McCoy has
worked on the establishment of the Memorandum of Understanding between
the County and the FKAA. -
PREVIOUS RELEVANT BOCC ACTION:
Appointment of Commissioner McCoy as point person on wastewater issues.
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATIONS:
Approval.
TOTAL COST:
BUDGETED: Yes
No
COST TO COUNTY:
SOURCE OF FUNDS:
REVENUE PRODUCING: Yes
No
AMOUNTPERMONTH_ Year
DOCUMENTATION:
Included X
APPROVED BY: County Atty JL OMB/Purchasing_
DIVISION DIRECTOR APPROVAL:
To Follow
Not Required_
DISPOSITION:
AGENDA ITEM # t!J.3
Revised 1/03
MEMORANDUM OF UNDERSTANDING
Of the Signatories
With a little over six years left to meet the State's sewering time mandate and the
need to best utilize decreasing available funds, this "Memorandum of Understanding" is
being used to expedite.
The Board of County Commissioners on January 15,2003 unanimously expressed
their desire to have Key West Resort Utilities perform the engineering/survey for the
Rockland, Big Coppitt and Geiger Key wastewater project.
On July 30, 2003, Florida Keys Aqueduct Authority issued a letter on the viability
of Key West Resort Utilities and supporting the most cost-effective solution and further
that the seven concerns contained in their letter be addressed.
The intent is to have Key West Resort Utilities proceed with the
engineering/survey with periodic reviews by Florida Keys Aqueduct Authority and the
County and at it's completion determine if the contract is to be awarded based on the Key
West Resort Utilities' estimates or if another method is to be used to award a contract.
The response and concerns of the July 30,2003 Florida Keys Aqueduct Authority letter
will be included in the "Contract to Build". The terms of the Florida Keys Aqueduct
Authority response will apply with the acronym "KW.R.U." or the successful bidder
being substituted in Items 2 through 5, which will include the substitution of the word
"shall".
Attachment A; the attached nine-page material is made a part for back-up
assistance.
MONROE COUNTY ATTORNEY
gP~. ROvfP ...ATl. 0 FOA~:
_()~-.I--::. (JJ_J./ oJ.
JOHN A. COLLINS
COUNTY A TIQRNEY ;;S
Date 17 ::--:/ / J ,Le 0 -
INDEX
Pa2e
1. Comparative Cost Analysis 1
2. Service Area Boundaries 2
3. F.K.A.A. Letter Requesting Guarantees 3-5
4. Response to F.K.A.A. Request 6
5. B.O.C.C. Resolution Granting Approval for 7
Engineering Survey
6. Background Information
8
7. Further Background Information
9
l1'tTA"l~M A
BIG COPPITT, ROCKLAND & GEIGER KEYS
COST ESTIMATE
JUNE 30, 2003
Collection Systems
$10,500,000
Wastewater Plant A WT &
Force Maint to South Stock Island
$ 4,250,000
Surveying, Engineering & Permitting
$ 1,000,000
Administration & Legal
$ 950.000
$16,700,000 _
SOURCES OF FUNDS
Area Customers 1100 x $2,700
$ .2,970,000
South Stock Island .Funds 1500 x $2100
$ 3,150,000
Balance of $6,000 Funds
($6,000,000 - $4,200,000 Cost SSI)
$ 1,800,000
KW Resort Utilities Contribution
(Plant & Force Main)
$ 4.250.000
$12,170,000
Funds to Complete
~ 4.530.000
Above are the numbers committed to by Key West Resort Utilities. In
contrast, the study and estimate by the engineering firm L.B.F.H.,
commissioned by F .K.A.A. for the project, was $22,108,153. Omissions in
their estimates include: foundation $500,000; bridge crossing $144,000;
engineering $981,000; two additional vacuum stations $1,300,000 for a total
of$24,889,153. In addition, there should also be an annu~l savings for
operations and maintenance in excess of $250,000
1.
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FIGURE 5-9
Sub-Regiona.~ Service
Area Boundaries
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Legend
Service Areas
I:J Big Coppitt Key
t:J Geiger Key
CJ RockJand Key
Study Area
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o Parcels
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.U'~a rKU"'~~A KEVS AQUEOUCT AUTH
10:3052883521
PAGE
2/4
Florida Keys '.-it':'!
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A d lAth. ~i(~f'.
que uc u orlty ,,;J~/"
Post Office 80lc 1239 p'~: ,~~~ <
1100 keanedy 0rIvt ., . ...,:: .... ._;. ';;jj~j'Jffi~"
Key West FIo'ida33041'1239.''-.~~~r '..' ".' .,' ~/~~:'
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- July 30. 2003
Commissioner Sonny McCoy
Momoc County Board of COWlty Commissioners
530 'Whitehead Stn:et
Key W~ PI 33040
Re: Big Coppin Key Wastewater Service Area
Dear Commissioner McCoy:
On Thursday, July 24th7 the FKAA Board of Directors ~ 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
1he position of the FKAA Board ofDircctors is to ensure that the most cost-effective wastewater
service system available is provided. If it is determined that KWRU is the most cost~ective
solution and there arc certain teehni~ financial, and public relations guarantees ~ the FKAA
Board would not object to KWRU expanding its franchise to Big Coppitt.
The FKAA Board would ~ guarantees for the following items prior to KWRU expanding its
franchise area:
1. A guaramced maximum capital cost
2. Adequate planned public input and public outreach
3. Completion of a pre-design facility report
4. rmancial 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)
lnfonnation regarding the estimated construction co~ and the fimding 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. (copy attached).
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. Thereforc~ unless
the county is committed to funding the balance of the Big Coppitt costs for KWRU, the FKAAmust
ensure that Big Coppitt remains eligible to benefit from Federal grants.
.3
~ 10:31 PRCM.FLA KEYS AQUEDUCT AUTH
ID'3052S83521
PAGE
3/4
Commissioner Sonny McCoy
July 30, 2003
Page 2
I look forward to meeting with you to discuss the above list in greater detail and to work towards a
successful, economical project.
Sincerely,
AUmoRIlY
Ijr
Cc: FKAA Board of Directors
Board of Monroe County Commissioners
Jim Roberts, County Administrator
Tim McGany. Director of Growth Management
George Garrett, Director of Marine Resources
If
....,.-. -......-......---.
. --lQ~ llQ'~2 FROM,F.LA KEYS AQUEDUCT AUTH 10,3062863521
,.,. KW RESORT UTILITIES -
~o. Box 2125 .
Key West, Florida 33045 I
Telephone C305} 294--9578
Mi~ile (30s) 294..1212
I,'
-
BIG COPPlIT, ROCKI..AND & GEIGER KEYS
COST ES'ilMAn:
JUNE3~3
-. .
. .. .
Collection System
WastewBtcI' Plant A wr
& Faroe Main. to South Stock lB1and
. $lO~7000
4~~OOO
1,OO(M)OO
9S~OOO
$16,700,000
SOVRCES OFFI1NDs
An::a Cnst"fl1a3 1100 X $2700
Sooth S10ck T!dsmd Famds 1500 X'S2100
$2$10,,000
5,150,000
BSlIJ~ of$6,OOO~ooo Fuads
($6,000,000 - $4,200,000 Q)st 881)
KW Resort Utilities Contribution
(Plant & FomeMain)
1,800,000
4,250,000
..
Funds to Complete
$J~170,OOO
$4,s30~OOO
Monthly rcsi~1tJ sewer fee cu:rrentIy is $35.89 and will be arteoded to above .
CDStomers.
D"...r "......LI
PAGE 4/4
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Jut s 0 2003
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To bring comfort to both the F.K.A.A. and the Board of County
Commissioners, the concerns of the Aqueduct Authority are hereby
addressed:
1. At a B.O.C.C. meeting on 1/15/2003, the Board unanimously granted
"conceptual approval to extend the contract between Monroe County and
Key West Resort Utilities to provide an engineering/survey for the
Rockland, Big Coppitt and Geiger Key wastewater project." The
arrangement is to have K.W.R.U. perform the engineering/survey and at
it's completion confirm their cost estimates to a contract.
2. K.W.R.U. will provide adequate public outreach and input, including
workshops, web page and a telephone hotline.
3. Utilizing the F.K.A.A. commissioned "Wastewater Feasibility Study" by
L.B.F.H. dated June 2003 and the provisions of Item I above, the
K.W.R.U. will guarantee the requisites of A.W.T. wastewater treatment
services to the expanded service area and the cost of expanding and
providing those services. .
4. K.W.R.U. will provide a summary of all proposed fees and charges.
5. K.W.R.U. will provide a funding commitment for A.W.T. wastewater
treatment and transmission facilities for the expanded service area.
6. The County will continue the process of providing the financing of the
System Development charges (hook-up fees) for the expanded service
Area.
7. The County has the primary responsibility for project balance funding.
V;
OJlJBI2003
2003/2 I
Bill Smith, representing Key West Reson Utilities addressed the Board. Alter discussion
motion was made by COnunissioner McCoy and seconded by COmmissioner Nelson &ranting
conceptual approval to extend the Contract between Monroe County and Key West Resan
Ulilitiee to ~ 1UI ~SUJvoy lOr th. Raoldand, . Big Coppin and Gager Key
~.prqjC(:t. Chief Assistant County Attorney Rob Wolfe, and Clerk of Court Danny L.
Kolhage addressed the Bmu-d. Ron caH vote Was unanimous.
W ASTEW A TER ISSUES
Karen K. Cabanas, Esq. of the firm Morgan and Hendrick referred the Board to her
Wrinen Growth Management Litigation Repon, dated January 13, 2003.
DIVIsION OF GROWTH MANAGEMENT
Mr. Wolfe disa.ssed with the Board a request by IsJamorada, VdJage ofIslands to rejoin
the Upper Keys Health Care Taxing District. This item Was referred to Stall'
COUNlY AlTORNEY
Mayor Spehar diSCUssed having Board workshops that WOuld not be televised and WOuld
not include public ioput. Mr. ColJins, Mr. Roberts, and Mr. KOlhage addressed the Board.
Mayor Spehar requested that at the February meeting of the BOard in Key Lqo there be a Board
workshop to begin at 9:00..... with the regular meeting at 10:00 a.m.
MISCELLANEOUS
There being no fiuther business to COm. before the Board, the meeting Was adjourned.
Danny L. Kolhage, Clerk
and ex-officio Clerk to the Board
of County COmmiSsioners
Monroe County, florida
4j.) Q. ,Q ~11.~
Isabel C. DeSantis, Dept:'ty Clerk
~
Big Coppitt Key, Geiger Key aDd Roeldaad Key
Preparation of the wastewater facilities plan and cost of service study for the system commenced
during the month. Lindahl, Browning, Femri and Hellstrom (LBFH) prepared a draft technical
memorandum outlining expected flows for the service area.
LBFH will continue with the facilities plan that will review and evaluate several treatment
options and plans to meet the completion date of May 15,2003.
Staffhas applied for $1,800.000 of grant 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 Dig Coppitt Key.
~
JAU.lIJ 2003 16:37
Th~ L~w Df/lces of SH!&E
nl ;.<;1.", ;""'.'> ~.;oi l
1<. 1U. 1{'E.S01<r 'U7"9.t.!.JT9EJ'
64'0 'ERSt JlDlftJ, CoIfIJ' 1f.1NNI
1<., ?V.~ '#0"" .J3040
'P~ J~.~4--J3J2. ~.JOJ-2.94-fZ/2.
JoZ4 F .4CS/MlLE:
J'S.292.J~"
lanuary 10, 2(0) .;j.
Mayor DLuc Spehar
MODroe County
Soo Whitcbcac! Street, Suite 102
Key Wes., Florida 33040
lIE: ail CoPPltt, (;eicel' a.d RocldaDd Keys
Dear Mayor Spehar:
I wish Ie acImc ,.. IIw lIlc X.W. Raort UIiIiti.. Cllpandou PnIJect 00 S_ Stoot
llland i. I!'>ina ........,y ",",I. w. had __ Ie have "'" ......, ..... by D-.b..- I.
200] but illGOb lib .... Will ha..1Ile J'IO.ioct dOac by 1... I, 2003. w.......IoI..... oJl1be
pipe .... volvo pils .. ... - by April J, 200), """ lbe ........ __ _... """"'-l be
oaJi.. by JUDe 1.2003. r... also plcaxd 10 .epwt IIw U. )lIojOCl i. 011 """'01. W.l1a..,
5380,000 ~ item .. 1be project. .... 10 IIli& date we baY. "'" -%AId ",y .......
w. SIC pl...cd with tho - of.... '"'Binoering .......,.....Ioolh of OUr -....
10 eddilieo we hev. "Pieced 4.800 1_ r... of eigln-inch fim:c IIIIfn for ... .....
-line 10 !he /101f ...... II tIIo 1Ili1l1y --'-'s _. a.c..'ly... have Iud
llppIOxiOlalcly )0 -. 3 1- ....- -"'llllcl reI_ cqvipm....,eorina "'the .......
of South Stcdt I....... r em -....,..... ... do. i.1ond ;. ..g.dy ......Iing lIlc _DB of...
job.
Bued - Iho: - aad in III. inraost or bopi... our lam _"..... ... SIC lQdy 10
- ..... tIoe - _... Of'" job, wbid. U !he -criog of ltis CoppiU, Geiger aad
RO<li:land ltcye, -tiOJl or -_ion Une fivm RDcIclaod lCey dowo to lbc X. W. R.....
Ulitity _ tIoe _... of!he 1<. W R-. Utility PI... fivm, .499 "'~d. to .m Dl.g.d. no;.,
pn,ject will be bvi). 10 adv..... ........- __ ... by vi.... .r "Pllldiog 10 Dig Coppin,
Gu.., Ii Rocklood Kcyo we "'ouJd ICCderato the _on of lbc "';'0/18 plant to A.W.T.
fivm 2007 to 200S to coincide Wilb lb. OJla>iDs with the addili... to lb, ~laal. ClUTcolly....
estimate then: are 1.120 ERe', co III... Keys, There..... number ofv..lllllo11 iD lhe.....
whim ....Id boos, fhe 1!.R.c. I. 'RJn>ximerery 1500 ERe', but w. .... ...... .. 10 !he
developabiJity of those lots.
T~~ .~ ~.e~!~T ~~I~~I__
9