Broward County Commission Regular Meeting


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AI-28581 26.       
Meeting Date: 03/28/2019  
Director's Name: Thomas Hutka
Department: Public Works Division: Water & Wastewater Administration

Information
Requested Action
MOTION TO APPROVE First Amendment to Agreement for Capacity Allocation in Phase 1 of the C-51 Reservoir between Broward County and Palm Beach Aggregates, LLC of six million gallons per day at a capital cost of $27,600,000 in order to extend Palm Beach Aggregates' deadline for funding and construction start to November 30, 2019; and authorize the Mayor and Clerk to execute same.

ACTION:  (T-10:30 AM)  Approved as amended with Yellow-Sheeted Additional Material, dated March 28, 2019, submitted at the request of the Office of the County Attorney.  (See Yellow-Sheeted Additional Material, 26(2) dated March 28, 2019, submitted at the request of Environmental Protection and Growth Management Department.)

VOTE: 8-0.  Commissioner Sharief was not present.

 
Why Action is Necessary
Board of County Commissioners' approval is required for amendments to agreements.
What Action Accomplishes
Modifies the deadline for Palm Beach Aggregates, LLC to obtain commitments and construction financing to move forward with Phase I construction of the C-51 reservoir.
Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
PUBLIC WORKS DEPARTMENT/WATER AND WASTEWATER SERVICES RECOMMENDS APPROVAL.

This item supports the County Commissioners' Value of "Encouraging investments in renewable energy, sustainable practices and environmental protection" with the goal to "increase water quality protection efforts and lead creative approaches to water storage and aquifer recharge, as well as diversification of water supplies, regionally."

On May 2, 2017 (Item No. 16), the Board of County Commissioners approved the Agreement for Capacity Allocation in Phase 1 of the C-51 Reservoir to purchase six million gallons per day of water storage at a capital cost of $27,600,000 The proposed C-51 Reservoir represents a multi-year collaboration between local governments, water suppliers, and water management agencies. This regional water resource project has the potential to deliver significant environmental and water supply benefits.

The original agreement had specific timelines for Palm Beach Aggregates to secure funding and commence construction for the C-51 reservoir. The original deadline was June 30, 2018. At this time, Palm Beach Aggregates, LLC has secured agreements with Broward County, Sunrise, Dania Beach and Hallandale Beach for a total commitment of 13 MGD. Palm Beach Aggregates continues to work toward finalizing construction financing so the project may commence, and has asked Broward County and each of the project participants to execute a new extension of the deadline for funding and construction to November 30, 2019.  A revised agreement with the new date of November 30, 2019 for the extension is being finalized and signature pages will be noted on the Wednesday Night Memo, prior to Board action.

This agenda item has been reviewed and approved to as form by the County Attorney's Office.
Source of Additional Information
Alan W. Garcia, PE, Director, Water and Wastewater Services, (954) 831-0704
Thomas J. Hutka, PE, Director, Public Works Department, (954) 357-6410

Fiscal Impact
Fiscal Impact/Cost Summary:
Financing 100% of the capacity purchase cost of $27,600,000 relates to an annual debt service of $2.1 million which reflects 4.5% or approximately $1.11 of current monthly water fees for a single family customer with 5,000 gallons per month consumption. Any change in water service fees for this expense would be offset by savings resulting from reductions in over-all water system expenditures.
Attachments
Exhibit 1 - C-51 Reservoir Capacity Allocation Phase 1 Agreement
Exhibit 2 - First Amendment to Capacity Allocation Agreement
Additional Material - Information
Additional Material - Information


    

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