Broward County Commission Regular Meeting


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AI-29075 9.       
Meeting Date: 06/04/2019  
Director's Name: Thomas Hutka
Department: Public Works Division: Water & Wastewater Administration

Information
Requested Action
MOTION TO APPROVE Second Amendment to the Large User Wastewater Agreement between Broward County and Parkland Utilities, Inc, to increase their reserve capacity in the North Regional Wastewater System; effective upon execution and authorize the Mayor and Clerk to execute same. (Commission District 3)

ACTION:  (T-11:16 AM)  Approved.

VOTE:  8-0.  Commissioner Sharief was not present.
Why Action is Necessary
Board of County Commissioner's approval is necessary to approve an amendment to an interlocal agreement.
What Action Accomplishes
Modifies the amount of system capacity the Parkland Utilities, Inc has reserved in the North Regional Wastewater System.
Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
PUBLIC WORKS DEPARTMENT/WATER AND WASTEWATER SERVICES RECOMMENDS APPROVAL.
 
Broward County owns and operates the North Regional Wastewater Treatment Plant and related transmission system collectively known as the North Regional Wastewater System. On June 14, 1998 (Item No.13), the Board of County Commissioners approved the Large User Agreement with Parkland Utilities, Inc. for the provision of wastewater transmission, treatment and disposal of all wastewater collected within their defined service area (Exhibit 1). Under the Agreement, the large user reserves a defined treatment and transmission capacity in the system to meet their projected customer average annual daily flow demands in million gallons per day (MGD)  for wastewater service (referred to as reserve capacity) to cover estimated demands currently through 2035. On November 10, 2009, the Board of County Commissioners approved the first amendment to the Large User Wastewater Agreement (Exhibit 2) to adjust Parkland Utilities, Inc's reserve capacity. Recently, Parkland Utilities, Inc. contacted the County and requested to incrementally purchase an additional 0.1164 MGD total reserve capacity over the next four years (Exhibit 3). Since there is excess capacity in the North Regional Wastewater Treatment Plant, this reserve increase can be offered without reducing reserve capacity for any other large user.

Per Section 5.3 of the Large User Agreement (Exhibit 1), when there is a change in reserve capacity that affects the large users’ proportionate share of the total reserve capacity, a “square one adjustment” is performed. The square one adjustment is defined as the pro-rata adjustment of costs associated with the additional principal, interest and bond coverage charges attributed to the additional amount of reserve capacity. For the square one adjustment, staff calculates what a large user would have paid in debt service charges since the inception of the system using their new pro-rata share of reserve capacity. This is then compared to what they have paid based upon their previous pro-rata share of reserve capacity to determine their net "square one adjustment" payment. Depending on the exact timing of the phased requests for the total increase in reserve capacity of 0.1164 MGD, the square one adjustment is estimated to be approximately $612,000 (Exhibit 4).

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

Fiscal Impact
Fiscal Impact/Cost Summary:
Depending on the exact dates of the phased increase in the reserve capacity, the County will receive approximately $612,000 from Parkland Utilities, Inc. for the square one allocation payment.
Attachments
Exhibit 1 - Parkland Utilities Large User Wastewater Agreement
Exhibit 2 - 1st Amendment - Parkland Utilities Large User Wastewater Agreement
Exhibit 3 - Proposed 2nd Amendment to LU WW Agreement
Exhibit 4 - Square One Adjustment Estimate


    

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