HomeMy WebLinkAboutEDB CGS Request to Adjust SA Final EXECUTIVE SUMMARY
AGENDA ITEM:
Request from the City of Green Cove Springs to amend the service area identified in the Interlocal
Agreement with the Clay County Utility Authority(CCUA)
Date: September 2, 2022
BACKGROUND:
The City of Green Cove Springs(the City)sent a proposed addendum to the Interlocal Agreement between
the City and CCUA. The City's proposed addendum would amend the Interlocal Agreement's service area
boundaries. The City's amended service area boundary would include areas within the Bayard
Conservation Area and an area north of State Road(SR) 16. The conservation area is currently owned by
the St. Johns River Water Management District(SJRWMD). Within the conservation area,there are three
(3) parcels that are privately owned. All four (4) parcels, the three (3) within the conservation area plus
ca
the one (1) area north of SR16, could potentially develop and require utility services in the future.
c
a Staff reviewed the request from the City and we do not see a reasonable way for CCUA to serve these
o properties in the future. We could not justify a plat facility east of the City within the conservation area.
c CCUA would need to run infrastructure either to or through the City to serve these properties. Staff
c" prepared a simple calculation which indicated roughly$40M in infrastructure would be needed for CCUA
ce to serve these properties. Based on our calculations, staff considers the costs for CCUA to serve these
properties prohibitive.
The City operates and maintains utility infrastructure that is much closer to these subject properties. Based
upon the prohibitive costs to CCUA and the proximity of the City's utility infrastructure to these
properties, staff supports the City's request to amend the Interlocal Agreement with revised service area
boundaries.
RECOMMENDATION:
Staff respectfully requests the Board of Supervisors approve the City's request to amend the Interlocal
Agreement with revised service area boundaries.
Attachments
Third Addendum to the Interlocal Agreement
City of Green Cove Springs Service Area Map
CCUA Service Area and Infrastructure Map
Interlocal Agreement Between the City of Green Cove Springs and the Clay County Utility Authority
//JDJ(Author)
//GW(Review)
//JDJ(Final)
Executive Summary Addendum No.3 CGS and CCUA Interlocal Agreement
Page 1
THIRD ADDENDUM TO THAT CERTAIN
INTERLOCAL AGREEMENT BETWEEN
THE CITY OF GREEN COVE SPRINGS,FLORIDA AND
THE CLAY COUNTY UTILITY AUTHORITY
THIS THIRD ADDENDUM to that certain Interlocal Agreement by and between the City of
Green Cove Springs, Florida a municipal corporation, whose address is 321 Walnut Street, Green
Cove Springs, Florida 32043 (City) and the Clay County Utility Authority,whose address is 3176
Old Jennings Road,Middleburg,Florida 32068-3907(Authority)is made and entered into as of the
date shown below for the last signatory hereof.
WITNESSETH
WHEREAS, on March 17, 1998, the City of Green Cove Springs, Florida (City) and the
Clay County Utility Authority (Authority) entered into an Interlocal Agreement relative to the
provision by the City of bulk water and wastewater utility capacity to the Authority so as to enable
the Authority to provide service to customers within its service area for which it did not,at the time,
have the requisite plant capacity to provide such service on its own. A copy of said Interlocal
Agreement is attached hereto and incorporated herein by specific reference; and
WHEREAS,on August 7,2018,the parties entered into a First Addendum to said Interlocal
Agreement relative to rates and charges to be paid by the Authority to the City for such services. A
copy of said First Addendum is attached hereto and incorporated herein by specific reference; and
WHEREAS, on May 2, 2021 the parties entered into the Second Addendum to said
Interlocal Agreement whereas the City agrees to make temporary water and wastewater
treatment plant capacity available to the Authority by which it may provide retail service to the
Rookery(formerly Ayrshire)Project on a temporary basis until such time as the Authority has
treatment plant capacity of its own to service such Project,at which time the Authority will cease
Page 1 of 3
taking interim treatment capacity from the City and provide such capacity to the said Ayrshire
Project on a permanent basis.
WHEREAS,the City and Authority, in reviewing and planning the limits of the water and
sewer service territory have determined certain parcels inside the Authority's service territory are
only practical for the city to serve.
NOW, THEREFORE, for and in consideration of the recitals and the covenants,
representations,warranties and agreements herein contained, and intending to be legally bound, the
parties hereto agree as follows:
1. The Authority, pursuant to the terms and conditions of the Interlocal Agreement and
the First Addendum and Second Addendum thereto referenced hereinabove, agrees to amend their
service territory per the boundaries established in Attachment"A".
2. Attachment"A"is a map showing the City's current service territory outlined in blue,
the area proposed to be transferred to the City's service territory outlined in red,the St. Johns River
Water Management District(SJRWMD)parcels shaded in green, and the private parcels within the
transferred area shaded in pink. In order to clearly delineate the transferred territory the boundary
of the SJRWMD parcel and the St. Johns River were utilized.
Page 2 of 3
DONE AND EXECUTED on the dates indicated below in Clay County,Florida.
CITY OF GREEN COVE SPRINGS,
a municipal corporation of the State of Florida.
Date:
By:
Daniel M. Johnson
Mayor
Attest:
Erin West, Clerk
APPROVED AS TO FORM:
James Arnold,III
City Attorney
CLAY COUNTY UTILITY AUTHORITY
Date:
By:
Wendell Davis
Chairman
Attest:
Janice Loudermilk
Clerk
APPROVED AS TO FORM:
Grady H. Williams,Jr., Esq.
Page 3 of 3
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INTERLOCAL AGREEMENT
BETWEEN THE CITY OF GREEN COVE SPRINGS, FLORIDA
AND THE CLAY COUNTY UTILITY AUTHORITY
The parties hereto, the City of Green Cove Springs, Florida (hereinafter "City") and the
Clay County Utility Authority (hereinafter "Authority") do hereby enter into this Interlocal
Agreement pursuant to Section 163.01, Florida Statutes, on the date shown for execution hereof
below, providing as follows:
1. Description Of The Parties And Purpose Of The Agreetve —
1.0 The City is a duly established municipal corporation located in Clay County,
Florida. Pursuant to authority granted it by its charter and by Chapter 180, Florida Statutes,
the City provides water and wastewater utility services from facilities owned by the City. The
Authority is an independent special district created by the Florida Legislature (Chapter 94-491,
to Laws of Florida).
1.2 The Authority does not presently have water or sewer utility facilities in the
unincorporated areas surrounding the City south of Black Creek, and the parties intend through
this agreement to describe the terms under which the City will provide such services to defined,
unincorporated areas of Clay County and the terms under which the Authority will utilize
portions of the City's water and wastewater capacities to serve its customers outside the defined
unincorporated area to be served by the City.
2. Service Area Designations:
2.0 Service Areas--Attached hereto as Exhibit "A" is a map depicting and describing
a water and wastewater utility service area (hereinafter "service area") to be served by the City.
The City has the exclusive right to provide water and wastewater utility service to the area so
designated on the map in addition to honoring two written agreements (Quigley House and Clay
County Landfill) to provide service outside the service area in existence on the effective date of
this agreement. The Authority has the exclusive right to provide water and wastewater utility
service to all areas in unincorporated Clay County outside the service area.
2.1 Annexation--The City will not require as a pre-condition to connection to City
facilities for any landowner within the service area designated in Exhibit "A", that the landowner
consent to annexation of the land into the City. This shall not, however, preclude the City,
wherever a landowner otherwise conses•,tsM.to.annexation, or'where the City proceeds in
accordance with Chapter 171, Florida Statutes, from annexing such lands into the City.
2.2 Franchise Fees--No party to this agreement shall be required to pay any franchise
fees to another in connection with the provision of water and wastewater utility services in the
service areas designated herein.
0 3. Terms Under Which City Will Provide Water And Sewer Services In Its Service
Area:
3.0 Committment to Serve--The City will provide water and wastewater utility
service to customers in the service area in accordance with the City's policy for extension of
such services.
3.1 Maintaining Necessary Permitted Capacity--The City will maintain permitted
system capacity as necessary to serve customers in the service area.
3.2 Comparative Rates--Without restriction to its legal authority and responsibility
for meeting debt service requirements in support of bonds issued by the City for construction
and improvement of its facilities, the City intends that the water and wastewater rates to be
2
charged to customers in the service area designated in Exhibit "A" shall be no more than
twenty-five percent (25%) higher than rates charged for comparable water or wastewater utility
services to customers located inside the corporate boundaries of the City, excluding the City's
ten percent (10%) tax on water revenues. Under any circumstances, should bond requirements
• necessitate any rate increases for customers in the service area greater than the 25% provided
for in this paragraph, then such increase will be matched by the same percentage rate increase
to customers located inside the corporate boundaries of the City.
3.3 Environmental and Conservation Considerations--The pass--hereto agree to
comply with the policies of the regulatory agencies with jurisdiction and the Clay County
Commission regarding environmental protection and reuse where applicable and to the extent
feasible in connection with future expansion of facilities.
4. Bulk Services To Be Provided By City To Authority For Connections Outside Service
Area:
to
4.0 The parties agree that it would be mutually beneficial for the City to enable the
Authority to utilize presently unused capacity in its water and wastewater facilities to provide
service to anticipated Authority customers outside the City's service area. This section sets forth
the terms under which the Authority will be enabled to use the City's facilities for this purpose.
4.1 The City will reserve water and wastewater capacity for use by the Authority in
the total amount of 200 Equivalent Residential Connections (hereinafter ERC's) each of water
and wastewater capacity. An ERC equates to 350 gallons of water or wastewater service
capacity. This capacity will be allocated in 100 ERC increments to each of the City's two water
and wastewater plants. No advance payment will be due from the Authority to the City for
3
reservation of such capacity. Subject to capacity availability, allocation of ERCs between plants
may be modified as appropriate through letter agreement between the parties .
4.2 When the Authority has made use of at least seventy-five percent (75%) of the
ERC's provided for in the preceding paragraph, the Authority shall have the option of reserving
• an additional 200 ERCs, also in 100 ERC increments to each of the City's plants. Said option
must be exercised by written request from the Authority to the City. No advance payment will
be due from the Authority for exercise of the option to use these additional ERC's. Should the
Authority need additional ERCs beyond the.-A. --provided for in this paragraph and the
preceeding paragraph prior to the end of ten years following execution of this agreement it shall
request same in writing to the City, specifying the number needed. The City will notify the
Authority in writing of the available capacity for use by the Authority as well as the term for
which such capacity may be used.
to 4.3 If, at the end of ten years following execution of this agreement, the Authority
has not connected all of the ERC's reserved by them in conformance with paragraphs 4.1 and
4.2 above but wishes to secure some portion or all of the unused ERC's, it may make advance
payment to the City for as many remaining unused ERC's as it wishes to secure. The payment
shall be equal to the City's then existing connection fee per ERC secured. Subject to the
availability of service capacity, should the Authority anticipate a future need for additional ERCs
beyond the ten year period provided for in this paragraph, and which it has not secured, the City
will in good faith negotiate appropriate extensions or modifications to the provisions of this
agreement regarding use of City facitlities
4.4 Connection locations for Authority ERC's must be approved by the City. No
4
minimum number of ERC's will be required per connection. The City and the Authority will
work together to identify proposed connection points for the Authority's ERC's using accepted
engineering practices.
4.5 The Authority shall bear all costs associated with extending lines needed for
. providing service to its ERC's.
4.6 The Authority will remit to the City the City's then existing connection fee for
the applicable service upon connection to the City's facilities. The connection fee charged shall
be equal to the fee charged equivalent property owners inside the City for connection to City
facilities at the time of connection.
4.7 The Authority may surrender all or any portion of the ERC's provided by the
City's facilities pursuant to this agreement only after giving the City a minimum two year
advance written notice of its intent to do so. For any ERC's withdrawn by the Authority from
to the City's facilities, more than two years, but less than ten years following initial connection
thereto, the City shall refund to the Authority, without interest, an amount equal to ten percent
(10%) of the connection fee paid at the time of connection, for each year less than ten years the
ERC is connected to the City's facilities, up to a maximum of eighty percent (80%). For any
Authority ERCs which remain connected to City facilities for 10 years or more, no refund will
be made of any portion of the connection. For purposes of calculating any refund due and
payable under this paragraph, the calendar year in which the connection fee is paid shall be
considered year one and the tenth successive calendar year shall be considered the tenth year.
Any refund paid shall be for the remaining full calendar years of that withdrawn ERC
connection.
5
4.8 The Authority shall install a meter at each main connection to the City's facilities,
however, the City will charge the Authority based on flow from individual meters at each ERC.
The Authority may apply for an exemption from the requirement for meters at main connections
where individual circumstances warrant such an exemption. All lines with fire hydrants must
• have a flow meter connection to City facilities.
4.9 The City will consider requests by the Authority for exemption or variance from
City requirements regarding installation of backflow prevention and/or cross connection control
devices. Such requests should be submitted at the time actual plans are developed for specific
connections to City facilities or actual connections are proposed by the Authority. Upon receipt
of such requests from the Authority, the City will consult with the Florida Department of
Environmental Protection(DEP) regarding the request. Provided DEP has no objection to such
requests, such requests will ordinarily be granted.
to 4.10 The Authority will pay a bulk rate for water and wastewater services received
from the City equal to eighty percent (80%) of the rate the City charges customers within the
corporate boundaries of the City for equivalent water or wastewater services excluding the ten
percent(10%) tax on water service charged to customers inside the City's corporate boundaries.
The City shall bill the Authority monthly or quarterly at the City's option, with said bill being
due and payable within thirty days of submission of same to the Authority. Failure to pay
entitles the City to disconnect any services not paid for consistent with the City's adopted
policies or ordinances regarding disconnections for non-payment.
4.11 Nothing herein shall preclude the City from increasing its rates for water or
wastewater services as long as any such increases are made in accordance with law, however,
6
in no event may the rate charged by the City to the Authority exceed eighty percent (80%) of
the rates charged for similar services to similar customers within the City's corporate
boundaries.
4.12 No substance other than domestic wastewater may be placed into the wastewater
system by the Authority's ERC's. If the Authority proposes to connect ERC's which will
introduce anything other than domestic wastewater into the City's wastewater system, it must
first obtain permission from the City and meet any pre-treatment conditions required by the City.
The City will not impose any pre-treatment requirements more onerous than those imposed on
similar customers within the City's service area. Should the City determine that an ERC of the
Authority which is connected to the City's facilities poses a threat of harm to the City's facilities
or its compliance with any regulatory requirements, the City may decline or discontinue service
to that connection.
to 5. Notice:
Any notices required or allowed to be delivered hereunder shall be in writing and shall
be deemed delivered when: (1) personally served on the official hereinafter designated; or (2)
upon receipt of such notice when deposited in the United States Mail, postage prepaid, certified
mail, return receipt requested, addressed to a party at the address set forth with the parry's name
below, or at such address as the party shall have specified by written notice to the other party
delivered in accordance herewith:
City of Green Cove Springs:
City Manager
229 Walnut Street
Green Cove Springs, Florida 32043
7
City of Green Cove Springs:
City Attorney:
L.J. Arnold, III, Esq.
P.O. Box 1570
Green Cove Springs, FL 32043-1570
Clay County Utility Authority:
Executive Director
782 Foxridge Center Drive
Orange Park, Florida 32065
Clay County Utility Authority:
CCUA Attorney:
Grady H. Williams, Jr., Esq.
1279 Kingsley Ave.,.Suite 117
Orange Park, FL 32073
6. Costs and Attorneys Fees:
Should either party be required to enforce the terms of this agreement in a court of law,
to the prevailing party shall be entitled to recover from the non-prevailing party all legal costs
incurred, including reasonable attorneys fees.
DONE AND EXECUTED on the dates indicated below in Clay County, Florida.
CITY OF GREEN COVE SPRINGS,
a municipal corporation of
I' l9.q g the State of Florida
Date
Ma or
Attest:
8
CLAY COUNTY UTILITY AUTHORITY
a Special District created
pursuant to Chapter 94-491,
Laws of Florida
Date A, x aft 14( t 1
air
t1Ett:� CI?
Approved as ,to form: , Approv as to form:
•
L. J. Arhold III G .ady I-I Williams, Jr.
City Attorney Clay County Utility Authority
Green Cove Springs, Florida
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ACAD FILE NAME
GCS4A1.DWG
SHEET NO.
OF