Okaloosa County BOCC — October 7, 2014 — reading text

are always project specific. Diverting a large number of dollars into the rate model in lieu of the revenue from the scheduled FY2015 rate adjustment is problematic. In the past, when we have received a large grant for a project that was already in our Capital Improvement Program (CIP) budget, we found an unbudgeted urgently needed project on which to spend the previously budgeted funds "freed up" by the grant. Example; when the Northwest Florida Water Management District awarded OCWS a $1.25 million grant for the Bob Sikes elevated tank, we informed the BCC that we plan to allocate the freed up funds to buy land for the Shoal River offline reservoir. We believe that it is crucial that we always use grant opportunities to increase the funding for addressing our critical aging infrastructure issues. The intent of grants for capital projects is not to divert funds from infrastructure projects to O&M expenses. Our strong recommendation to the members of the BCC and the County Administrator is that windfall grant opportunities for Water & Sewer be used for critical aging infrastructure projects. OPTIONS: Take no action or direct staff otherwise. RECOMMENDATIONS: Staff strongly recommends that no action be taken - that the current five year rate plan should be kept in place as scheduled through October 1, 2015. RECOMMENDED BY: Packet Pg. 321 APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 322  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: October 7, 2014 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Gravity Sewer Rehab - FDEP Grant Agreement DEPARTMENT: Water and Sewer BCC DISTRICT: 2&4 STATEMENT OF ISSUE: Staff requests that the Board of County Commissioners (BCC) approve and authorize the Chairman to execute the Grant Agreement between the County and the Florida Department of Environmental Protection (FDEP) for $450,000 of state appropriations to go towards gravity sewer rehab. BACKGROUND: This past February, Okaloosa County submitted three water & sewer projects via the County lobbyist (Cardenas Partners) for state appropriations. The requests were as follows: 1. Okaloosa Island/Wright Area Gravity Sewer Rehabilitation Project - $450,000 2. Okaloosa Island Water Supply Project - $600,000 3. Lake Pippin Area Sanitary Sewer Improvement Project - $2,000,000 This past June, staff received great news that all three requests had been funded, as listed above, for the state FY2014-2015 budget year. We also received notice that the state appropriations would be administered through the Florida Department of Environmental Protection's (FDEP) grant program. Since June, OCWS staff has been working with FDEP staff to firm up Project Work Plans and resulting Grant Agreement on each project. OCWS staff has also been coordinating the grant agreements with other County staff, including the Clerk of the Court. As we are working with various FDEP personnel with variable timing, staff will be coming to you with three separate FDEP Grant Agreements, one for each of the above-mentioned projects. For these grant agreements, a match is not required, and eligible expenses can be retroactive back to 7/1/2014, provided that they meet the Scope of Work and satisfy other terms and conditions of the grant agreement. For your review and approval is the first of three FDEP grant agreements - the Okaloosa Island/Wright Area Gravity Sewer Rehabilitation Project, for $450,000. The agreement, titled "State Financial Assistance Agreement, Okaloosa County, DEP Agreement No. LP46040", is attached, along with the County Contract Review Coordination Sheet. As shown in Attachment A, the "Project Work Plan", all $450,000 will be spent on construction dollars (Task 1). The project will include relining gravity sewer lines with cured-in-place pipe or in some cases, where the condition dictates, point repairs will be installed in lieu of complete relining from manhole to manhole. Problem manholes that have been identified as in poor structural condition will be completely relined, including the re-establishment of structural integrity as needed. The work will be done by utilizing two existing County Contracts; both are unit-price maintenance contracts. Contract #C12-1955-WS, with Insituform, will be utilized for work associated with pipelines. Contract #C13-2066-WS, with Gulf Coast Underground, will be utilized for work Packet Pg. 323 associated with manholes. OPTIONS: Approve or deny. RECOMMENDATIONS: Staff recommends BCC approval for the Chairman to execute the Grant Agreement with FDEP for $450,000 of state appropriations funding to go towards gravity sewer rehab. Staff requests also that the BCC authorize the Chairman to execute any future grant documents, including modifications to the grant agreement that don't change the total dollar amount. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 324 Packet Pg. 325  RICK SCOTT FLORIDA DEPARTMENT OF GOVERNOR ENVIRONMENTAL PROTECTION CARLOS LOPEZ-CANTERA BOB MARTINEZ CENTER LT. GOVERNOR 2600 BLAIRSTONE ROAD TALLAHASSEE, FLORIDA 32399-2400 HERSCHEL T. VINYARD JR. SECRETARY September 18, 2014 Mr. Mark Wise Deputy Director Okaloosa County Board of County Commissioners 1804 Lewis Turner Boulevard, Suite 300 Ft. Walton Beach, Florida 32547 Re: LP46040 - Okaloosa County Okaloosa Island/Wright Area Gravity Sewer Rehabilitation Dear Mr. Wise: Attached are the proposed grant agreement and attachments for the County’s wastewater improvement project. Please have the Chairman sign two copies, and return them to us within three weeks at 2600 Blair Stone Road, MS 3505, Tallahassee, Florida, 32399-2400. We will arrange for the documents to be signed and mail a fully executed original to the County. If you have any questions, please call Sandy Waters at (850) 245-8382. Sincerely, Angela Knecht, Program Administrator State Revolving Fund Management AK/sw Attachments cc: Marcella Eubanks - Okaloosa County Clerk of Circuit Court Kimberly Kilpatrick - Okaloosa County Board of County Commissioners Honorable Charles Windes, Jr. - Okaloosa County Board of County Commissioners www.dep.state.fl.us Packet Pg. 326  STATE FINANCIAL ASSISTANCE AGREEMENT OKALOOSA COUNTY DEP AGREEMENT NO. LP46040 STATE OF FLORIDA GRANT ASSISTANCE PURSUANT TO LINE ITEM 1668A OF THE 2014-2015 GENERAL APPROPRIATIONS ACT THIS AGREEMENT is entered into between the STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION, whose address is 2600 Blair Stone Road, MS 3505, Tallahassee, Florida 32399-2400 (hereinafter referred to as the “Department”) and OKALOOSA COUNTY, whose address is 1804 Lewis Turner Blvd., Suite 206, Ft. Walton Beach, Florida 32547 (hereinafter referred to as “Grantee”), a local government under the laws of the State of Florida, to provide funds for the Okaloosa Island/Wright Area Gravity Sewer Rehabilitation project. Collectively, the Department and the Grantee shall be referred to as “Parties” or individually as a “Party”. In consideration of the mutual benefits to be derived from this Agreement, the Department and the Grantee do hereby agree as follows: 1. The Grantee does hereby agree to perform in accordance with the terms and conditions set forth in this Agreement, Attachment A (Project Work Plan), and all attachments and exhibits named and attached hereto, which are incorporated by reference. 2. This Agreement shall be effective on July 1, 2014 and end no later than June 30, 2016, inclusive. The Grantee shall be eligible for reimbursement for work performed on or after the effective date through the expiration date of this Agreement. This Agreement may be amended to provide for additional services if additional funding is made available by the Legislature. 3. A. As consideration for the services satisfactorily rendered by the Grantee under the terms of this Agreement, the Department shall pay the Grantee on a cost reimbursement basis an amount not to exceed $450,000 toward the total estimated project cost of $450,000. The parties hereto understand and agree that this Agreement does not require a match on the part of the Grantee. If the Grantee finds, after receipt of competitive bids, that the work described in Attachment A cannot be accomplished for the current estimated project cost, the parties hereto agree to modify the Project Work Plan described in Attachment A, by amendment of this Agreement, to provide for the work that can be accomplished for the funding identified above. B. Prior written approval from the Department’s Grant Manager shall be required for changes between deliverable budget categories not to exceed 10% of the total deliverable budget amount. The Department Grant Manager will transmit a copy of the written approval and revised budget to the Department Contracts Disbursements Office for inclusion in the Agreement file. Changes that exceed 10% of the total approved deliverable budget will require a formal change order to the Agreement. Changes that Revised 7/14 DEP Agreement No. LP46040, Page 1 of 11 Packet Pg. 327  transfer funds from one deliverable to another or that increase or decrease the total deliverable funding amount will require a formal amendment to the Agreement. C. The Grantee shall request reimbursement for all eligible project costs upon receipt and acceptance of the deliverable(s) identified in Attachment A, utilizing a properly completed Disbursement Request Package (provided as Attachment B). All bills for amounts due under this Agreement shall be submitted in detail sufficient for a proper pre- audit and post-audit thereof. A final Disbursement Request Package must be submitted to the Department no later than September 30, 2016, to assure the availability of funds for payment. The Disbursement Request Package must include: (1) A completed Disbursement Request Form submitted by the Grantee’s Grant Manager. Such requests must be accompanied by sufficiently itemized summaries of the materials, labor, or services to identify the nature of the work performed; the amount expended for such work; and the person providing the service or performing the work and proof of payment of the invoices; and, (2) A certification signed by the Grantee’s Grant Manager as to the current cost of the Project; that the materials,