Okaloosa County BOCC — August 24, 2013 — Action Item Printout — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: August 20, 2013 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Emerald Breeze Development Agreement (Lift Station Cost Share) DEPARTMENT: Water and Sewer BCC DISTRICT: 2 STATEMENT OF ISSUE: OCWS staff requests BCC approval and execution of the Emerald Breeze Development Agreement. The agreement is to cost-share the construction of a proposed lift station on the Emerald Breeze property - an Enhanced Use Lease (EUL) parcel on Okaloosa Island, owned by Eglin AFB, leased by Emerald Breeze Resort Group, LLC. The agreement is attached for your review, along with the County Contract Review coordination form. BACKGROUND: The Emerald Breeze Project obtained a Development Order from the County on September 12, 2012, to construct two hotels and one restaurant on Eglin's EUL parcel. The Developer was planning on constructing a small, private lift station on the property that would take the wastewater flows from this development and pump it into OCWS sewer system. Whenever a Developer is in the planning/designing stages of a new system, staff takes the approach of looking at the lift station from a regional perspective - to analyze other potential flows (current and future) that could possibly come to the lift station. In this instance, we happen to have a problem with our existing 10" gravity sewer main on the north side of Highway 98 - the line is at or right near capacity during peak flow periods. We believe the solution to this problem is to divert some of our existing wastewater flows (from the Sheraton, Boardwalk, and Gulfarium) away from this 10" line and into the new Emerald Breeze lift station. Staff has worked with the developer and his engineer to come up with a new design of the lift station and a cost-share agreement that would upsize the lift station to accommodate the additional flow (estimated at 61,000 gallons per day). The lift station would be located in the same location as shown in the Development Order (on the Emerald Breeze EUL). We estimate the lift station to cost approximately $160,000. Here is a summary of the agreement: - The Developer would hire a contractor for $94,573 to construct the concrete wet well, junction manhole, and associated piping. - OCWS would reimburse the developer $12,716. The difference ($81,857) between these two numbers is the amount the developer had in his contract to construct the small, private lift station. - OCWS would procure and install the following items: pumps, plumbing, valving, panels, and other electrical/SCADA work. OCWS would also do the slab work and site work. By cost-sharing the work in this manner, we estimate the cost percentage that OCWS and the developer each spend will approximately equal the percentage of projected flow coming into the lift station. The lift station will be constructed to OCWS standards. The lift station and force main would be owned, maintained, and operated by OCWS. OCWS will obtain an easement from both Eglin and the developer for the lift station and force main. OCWS will also be constructing some gravity sewer to connect this lift station to the property to the east. In summary, we feel that spending approximately $80,000 on the lift station and $40,000 on the gravity sewer piping will increase capacity in the existing 10" gravity sewer line for the long- term future. Other land development projects will be able to connect to this 10" main, and by doing this project now, it should prevent us from spending well over $500,000 in the future for a project to replace this gravity main. This agreement is a rare win-win-win-win - for the County, the developer, Eglin AFB, and the public/customers. In addition to this cost-share agreement, the Developer has paid $337K in Capacity Expansion Charges for the first hotel (more to come), and the project will generate a good bit of monthly revenue, which will pay for operations of the lift station and force main in the long-term. OPTIONS: Approve or deny. RECOMMENDATIONS: OCWS requests BCC approval to authorize the Chairman to execute the Emerald Breeze Development Agreement for the cost-share of a proposed lift station. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator