Miami-Dade Legislative Item
File Number: 101760
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File Number: 101760 File Type: Resolution Status: Adopted
Version: 0 Reference: R-813-10 Control: Board of County Commissioners
File Name: JPA WITH FLORIDA POWER & LIGHT COMPANY Introduced: 7/1/2010
Requester: Water & Sewer Department Cost: Final Action: 7/20/2010
Agenda Date: 7/20/2010 Agenda Item Number: 8R1A
Notes: waiver request to 7/20/10 BCC Mtg. Title: RESOLUTION APPROVING JOINT PARTICIPATION AGREEMENT WITH FLORIDA POWER AND LIGHT COMPANY FOR THE DEVELOPMENT OF A RECLAIMED WATER PROJECT WHICH INCLUDES A MATERIAL AND LABOR CAP OF $78 MILLION WITH A FOUR PERCENT ANNUAL ESCALATION FOR A PIPELINE TO THE TURKEY POINT FACILITY; AND AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO EXECUTE SAME AND TO EXERCISE ALL PROVISIONS CONTAINED THEREIN
Indexes: JOINT PARTICIPATION AGREEMENT
Sponsors: NONE
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed


Legislative History

Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail

Board of County Commissioners 7/20/2010 8R1A Adopted P
REPORT: Upon discussing with County staff the provisions of the foregoing proposed resolution, Commissioner Sorenson moved to have the item deferred in order to meet with County staff and have her concerns addressed. The motion failed due to a lack of a second. Commissioner Sorenson commented she was not in favor of the Turkey Point Nuclear Plant expansion, and she noted the department should develop a secondary implementation plan for the reuse of reclaimed water in the event Florida Power & Light (FP&L) was unable to have permits approved. Chairman Moss noted for the record that FP&L needed to comply with all zoning mandates as well as any other necessary requirements in order to proceed with the project of reusing reclaimed water. After all of Commissioner Sorenson’s concerns were addressed, the Board proceeded to vote on the foregoing proposed resolution as presented.

County Manager 7/13/2010 Time Sensitive 7/20/2010
REPORT: This item needs to be heard at the July 20,2010 Board meeting because it will assist WASD to meet the reclaimed water use requirements as stipulated in the County's 20 Year Plan.

Government Operations Committee 7/13/2010 3E Forwarded to the BCC by the BCC Chairperson with a favorable recommendation P
REPORT: Assistant County Attorney Geri Bonzon-Keenan read the foregoing proposed resolution into the record. Commissioner Diaz noted he strongly supported this resolution because it would support the environment and help the County meet the water re-use requirements. In response to Chairman Gimenez’ question regarding whether this was a water re-use project, Mr. Piper noted it was and that it would satisfy more than half of the water re-use requirements imposed on the County. Hearing no further comments or questions, the Committee proceeded to vote on the foregoing proposed resolution as presented. Mr. Piper requested this resolution be waived to the next BCC meeting. NOTE: Chairman Gimenez submitted a memorandum dated July13, 2010, requesting the Board of County Commissioners (BCC) Chairman Moss to waive the Board's rules and procedures and allow this proposed resolution to be heard at the July 20, 2010 BCC meeting.

County Attorney 7/2/2010 Assigned Henry N. Gillman 7/2/2010

County Manager 7/1/2010 Referred Government Operations Committee 7/13/2010

County Manager 7/1/2010 Assigned County Attorney 9/9/2010
REPORT: WASD (Henry Gillman assisted) - GOC 7/13/2010 - Attachment: JPA

County Manager 7/1/2010 Assigned Howard Piper 7/1/2010

Legislative Text


TITLE
RESOLUTION APPROVING JOINT PARTICIPATION AGREEMENT WITH FLORIDA POWER AND LIGHT COMPANY FOR THE DEVELOPMENT OF A RECLAIMED WATER PROJECT WHICH INCLUDES A MATERIAL AND LABOR CAP OF $78 MILLION WITH A FOUR PERCENT ANNUAL ESCALATION FOR A PIPELINE TO THE TURKEY POINT FACILITY; AND AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO EXECUTE SAME AND TO EXERCISE ALL PROVISIONS CONTAINED THEREIN

BODY
WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board approves a Joint Participation Agreement with Florida Power and Light Company for the development of a reclaimed water project with a material and labor cap of $78 million with a four percent annual escalation for a pipeline to the Turkey Point Facility; in substantially the form attached hereto and made a part hereof; and authorizing the County Mayor or County Mayor�s designee to execute same and to exercise all provisions contained therein.

HEADER
Date:

To: Honorable Chairman Dennis C. Moss
and Members, Board of County Commissioners

From: George M. Burgess
County Manager

Subject: Resolution Authorizing Execution of a Joint Participation Agreement with
Florida Power & Light Company to Develop a Reclaimed Water System to Serve
the Company�s Turkey Point Facility

STAFF RECOMMENDATION
RECOMMENDATION

It is recommended that the Board of County Commissioners (Board) approve the attached resolution authorizing execution of a Joint Participation Agreement (JPA) between Miami-Dade County and Florida Power & Light Company (FP&L) for development of a reclaimed water project to serve FP&L�s Turkey Point power generation facility. The project will help the County fulfill its reuse requirements at a lower cost than alternative approaches and will also assist FP&L in meeting the growing regional electricity demands. The system will only be constructed if FP&L receives the appropriate permits to construct two new nuclear power generation units at Turkey Point. If these units are not constructed, there is no fiscal impact to the County.

SCOPE

The County�s 20-Year Water Use Permit (WUP) issued by the South Florida Water Management District (SFWMD) in November 2007, required that Water and Sewer Department (WASD) reuse at least 170 million gallons per day (MGD) of reclaimed water. This requirement presented an opportunity for WASD and FP&L to work together as FP&L developed new power generation facilities. FPL requires a reliable primary source of water for the operation of the two proposed nuclear power plants. Other options for securing these large amounts of cooling water could present significant permitting and water supply concerns. Both parties jointly determined that using 90 MGD of WASD reclaimed water is the most feasible and economical alternative to meet FP&L�s cooling water needs while simultaneously satisfying a more than half the reuse volume contained in the WUP.

The South District Wastewater Treatment Plant (SDWWTP), located in District 8, will be the source for the reclaimed water to be used at the Turkey Point Facility. The agenda item will have a countywide impact with respect to its environmental and economic benefits.

FISCAL IMPACT/FUNDING SOURCE

This agreement represents a significant cost savings to the County within the overall context of reuse mandates. It should be noted that FP&L costs to design, procure and manage the construction of the pipeline plus construction of additional treatment facilities to reduce nutrient content of the reclaimed water before it is used for cooling are estimated to exceed $400 million for this project. Other options for the County to satisfy WUP requirements, such as ground water replenishment could cost the County at least $300 million more than the option to provide reclaimed water to FP&L.

The system will only be constructed if FP&L receives the appropriate permits to construct two new nuclear power generation units at Turkey Point. If these units are not constructed, there is no fiscal impact to the County. If the project proceeds, the County�s responsibility is to pay the actual cost (on a reimbursement basis) of materials and labor to construct approximately nine miles of pipeline and associated systems to deliver the water from the SDWWTP to Turkey Point. The amount payable by the County is capped at an amount not to exceed the January 1, 2010 estimate of $78 million plus a maximum escalation of 4% per year, until FP&L is reimbursed for all material and labor costs and the pipeline is conveyed to the County. Any labor and materials costs exceeding the cap will be the responsibility of FP&L. FP&L contribution to the project is to provide all of the funding for the design, permitting, procurement, environmental mitigation, and construction management of the pipeline plus funding additional treatment of the reclaimed water after it reaches the FP&L site. Additionally, FP&L will pay the maintenance and replacement cost of the pipeline plus the operational costs of pumping reclaimed water to Turkey Point.

There will be no impact on the County�s current budget. The funding source for the County portion of this project will be future Water and Sewer Department (WASD) revenue bonds.

TRACK RECORD/MONITOR

This project will be monitored by WASD�s Deputy Director for Capital Improvements and Regulatory Compliance.

MANAGER'S BACKGROUND
BACKGROUND

The attached JPA allocates up to 90 million gallon per day (MGD) of reclaimed water treated with high level disinfectants to cool FP&L�s existing gas powered plant and the two proposed nuclear power units. Additional reclaimed water requirements are included in the Wastewater Masterplan and the Ocean Outfall statute administered by the Florida Department of Environmental Protection (FDEP), and WASD has been coordinating all of these requirements to find the most cost-effective combination of projects to optimize water supply and reuse mandates. To that end, WASD has been working very closely with FP&L staff since early 2008 to evaluate water supply alternatives to meet FP&L�s cooling needs at the Turkey Point Facility.

The SDWWTP is currently being upgraded to enhance waste water treatment processes to meet the high level disinfection requirements mandated in an existing consent order with the Florida Department of Environmental Protection. Therefore, the County does not need to design and construct additional treatment facilities at the treatment plant to provide reclaimed water to FP&L. The County�s only obligation under this JPA is the cost of materials and labor for the nine miles of pipeline from the SDWWTP to Turkey Point and the ancillary facilities at the treatment plant to deliver the water to the pipeline.

The attached JPA includes a draft of a �Reclaimed Water Service Agreement� addressing the specific responsibilities for the design and construction of the pipeline, Exhibit I of the JPA. The draft agreement also details the obligations of each party once the project is operational and a description of the compensation methodology. The County will enter into the �Reclaimed Water Service Agreement� once FP&L receives the permits for the two proposed nuclear plants. If FP&L does not receive the required local, state and federal regulatory approvals for the nuclear plants or a decision is made by FP&L not to continue with the project, the �Reclaimed Water Service Agreement� will not be executed and the JPA will expire. If the �Reclaimed Water Service Agreement� is executed, it will succeed the JPA as the operative agreement between the County and FP&L. After the �Reclaimed Water Service Agreement� goes into effect, maintenance and replacement costs over the life of the pipeline will be paid by FP&L including operation and maintenance expenses for the transmission of the reclaimed water. Either party can terminate the agreement with appropriate notice.

Construction of the reclaimed water pipeline and associated systems will be completed only if FP&L receives the permits for the two new nuclear plants. FP&L will be responsible for the design, engineering, permitting, and construction management of the pipeline, as well as any mitigation fees associated with environmental permitting. FP&L will also construct additional facilities at Turkey Point to reduce nutrient levels in the reclaimed water. At the completion of construction, which is expected to be in 2021, the pipeline will be conveyed to the County. At the time of conveyance, the County will reimburse FP&L for material and labor costs for the pipeline. The County will then own, operate and maintain the pipeline and be responsible for all aspects of security.


The proposed project detailed in the JPA is mutually beneficial to the County and FP&L in fulfilling their respective utility obligations. The concept of providing reclaimed water to support the growing demand for electricity has been endorsed by both the Florida Department of Environmental Protection and the South Florida Water Management District. In addition, the proposed project will generate both construction and other long term jobs in south Florida.



____________________________
Assistant County Manager



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