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HomeMy WebLinkAbout08.d EDB- GCS Interlocal Agreement for Interconnect EXECUTIVE SUMMARY AGENDA ITEM: Proposed Interlocal Agreement (IA) with The City of Green Cove Springs (GCS) for the Interconnection of Reclaimed Distribution Systems Date: October 30,2026 CCUA Staff seeks authorization to execute an IA with GCS for the design,bid, and construction of a main interconnecting the reclaimed systems of the two utility systems. The IA also details the financial arrangement for CCUA's purchase of GCS reclaimed water to serve CCUA customers. BACKGROUND: GCS produces reclaimed quality water at its Harbor Road Water Reclamation Facility (WRF). However, GCS has a limited reclaimed distribution system. CCUA has an extensive reclaimed distribution which beneficially reuses approximately 70%of this resource.With planned improvements and system expansion, CCUA expects to beneficially use 100% of the reclaimed water produced. With continued population growth, CCUA expects demand to exceed the amount of reclaimed water supply. In July of 2025,GCS approached CCUA about the possibility of interconnecting the GCS reclaimed system with CCUA's allowing CCUA to make beneficial use of the excess reclaimed water. The interconnection will help GCS comply with Florida's Zero Discharge mandate which requires utilities to eliminate surface water discharges by 2032. The interconnection will also allow CCUA to demonstrate continued commitment to the use of the lowest quality water source available to meet water demand, a condition of CCUA's Consumptive Use Permit. CCUA and GCS collaborated on an analysis of the potential interconnection. The analysis, reviewed by CCUA Staff, demonstrates that the GCS system can provide reclaimed water to a portion of CCUA's existing customers at an acceptable pressure and flow rate. The project is a 2,500 foot 12-inch main extension from Edgewater Landing to Traceland along Russell Rd. and County Road 315B. Approximately half of the main will be within the service areas of each service provider. The IA, therefore, stipulates that CCUA and GCS each fund half of the cost of design, bid, and construction. The estimated costs are $1,489,630 and CCUA's share of the cost will be $744,815. The construction cost, $1,313,000, is an engineer's estimate and CCUA will pay half of the actual costs. GCS was recently awarded an FDEP grant for $1,313,000, the full estimated construction cost. The funds will equally offset construction costs for both GCS and CCUA. After installation, CCUA will pay GCS for reclaimed water but is not obligated to purchase a minimum amount. Under the agreement, CCUA will pay GCS: • 80%of CCUA's Tier 1 residential flow rate for reclaimed usage • 80%of CCUA's base residential 12"meter charge The rates will adjust annually to reflect CCUA's current rates. GCS will own and maintain the meter and CCUA will review and verify calibration tests and results.GCS will be responsible for the maintenance and repair of all system equipment upstream of the meter (pumps, tanks, controls, etc.). CCUA staff analysis //DD (Author) //DP,JP(Review) //DD (Final) indicates that,with no grant money applied, CCUA will recoup the cost of design and construction within four to eight years depending on assumptions including customer growth,rate increases, and usage. BUDGET: Funding for this project is not in CCUA's 5-year capital program budget. There are sufficient funds in management reserves to cover the cost of design and construction. Over a twenty-year analysis,the project is projected to be net positive for CCUA. Additionally, FDEP grant funds will equally offset construction costs for both GCS and CCUA. CCNA: CCNA, F.S. s. 287.055, applies to the use of a consultant under a continuing contract. The estimated construction cost for the project does not exceed$7.5 million.GCS Staff negotiated the engineering services in the Interlocal Agreement in compliance with F.S. s.287.055. RECOMMENDATION: Staff respectfully requests Board of Supervisors' authorization to execute the attached Interlocal Agreement with the City of Green Cove Springs for the design and installation of the interconnection project described above as well as the ongoing purchase of reclaimed water from GCS. ATTACHMENTS: Interlocal Agreement //DD (Author) //DP,JP(Review) //DD (Final) INTERLOCAL AGREEMENT BETWEEN CLAY COUNTY UTILITY AUTHORITY AND THE CITY OF GREEN COVE SPRINGS, FLORIDA, FOR BULK RECLAIMED WATER INTERCONNECT AND SERVICE Parties and Effective Date This Interlocal Agreement("Agreement") is entered into pursuant to Section 163.01, Florida Statutes, by and between Clay County Utility Authority, an independent special district created by special act of the Florida Legislature ("CCUA"), and the City of Green Cove Springs, Florida, a Florida municipal corporation located in Clay County, Florida ("GCS") (each a "Party"and collectively the"Parties"), effective as of the date of the last Party's signature below(the"Effective Date"). Recitals The Parties acknowledge and agree as follows. 1. GCS owns and operates facilities for the treatment and distribution of reclaimed water, and CCUA owns and operates water,wastewater, and reclaimed water systems within Clay County, Florida. GCS treats reclaimed water and will serve as the selling and treating utility for a proposed interconnect, with CCUA as the purchasing and receiving utility. 2. The Parties desire to engineer, permit, construct, and operate a bulk reclaimed water interconnect to deliver treated reclaimed water from GCS to CCUA at a mutually defined Delivery Point near the intersection of CR315B and Russell Road in Clay County, Florida.The final As-Built Drawings will clearly define the entire Interconnect. 3. The Parties intend to share all costs associated with project engineering, to establish terms for bulk reclaimed water purchases by CCUA, and to coordinate ownership, operation, and maintenance of facilities constructed under this Agreement. 4. CCUA will purchase treated reclaimed water from GCS at a bulk rate established herein. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties agree as follows. Article 1. Definitions For purposes of this Agreement, the following terms have the meanings set forth below. 1 1.1 "Agreement" means this Interlocal Agreement, including all exhibits and any approved amendments. 1.2 "Applicable Law" means all federal, state, and local laws, rules, regulations, permits, orders, and approvals applicable to reclaimed water systems and the performance of this Agreement, including Florida law and applicable rules of FDEP and water management districts. 1.3"Bulk Rate" means the volumetric and base charge pricing for treated reclaimed water service from GCS to CCUA as set forth in Article 7. 1.4"Delivery Point" means the mutually agreed physical point at which GCS's facilities meter treated reclaimed water, located generally near the intersection of CR315B and Russell Road, with the precise location and configuration to be as depicted on Exhibit A, if attached, or otherwise as shown on the final As-Built Drawings approved by the Parties. 1.5 "Effective Date" means the date set forth above on which this Agreement becomes effective. 1.6 "Force Majeure" means an event beyond the reasonable control of the affected Party, which by exercise of due diligence the affected Party is unable to prevent or overcome, including but not limited to acts of God, flood, hurricane, lightning, fire, epidemic, war, terrorism, riot, civil disturbance, labor disputes, material shortages, governmental orders or restrictions, utility outages not caused by the Party, and failures or curtailments due to third-party suppliers. 1.7 "Interconnect" means the pipelines, valves, meters, appurtenances, and related facilities that connect GCS's reclaimed water system to CCUA's reclaimed water system for the purpose of delivering treated reclaimed water to CCUA. 1.8 "Metering" means the measurement equipment, devices, and associated appurtenances used to quantify flow and totalized volume of reclaimed water delivered at the Delivery Point. 1.9 "O&M" means operation and maintenance. 1.10 "Permits" means all permits, approvals, and authorizations from governmental authorities required to design, construct, own, operate, maintain, and deliver reclaimed water through the Interconnect. 1.11 "Project" means the planning, engineering, permitting, procurement, construction, testing, commissioning, and operation of the Interconnect and associated facilities. 1.12 "Reclaimed Water" or"Public Access Reclaimed Water" means treated effluent from a water reclamation facility, meeting Applicable Law for non-potable beneficial uses such as irrigation. Reclaimed Water shall comply with Chapter 62-610, Florida Administrative Code. 1.13 "Term" means the period stated in Article 10. 2 Article 2. Statutory Authority and Purpose 2.1 Authority. The Parties enter this Agreement pursuant to the Florida Interlocal Cooperation Act, Section 163.01, Florida Statutes, and pursuant to their respective enabling laws and charters. The Parties acknowledge this Agreement is consistent with their respective powers to provide and receive reclaimed water services. 2.2 Purpose. The purpose of this Agreement is to establish the terms and conditions under which GCS will sell, and CCUA will purchase, treated reclaimed water at bulk rates, and under which the Parties will design, construct, test, commission, operate, and maintain the Interconnect and associated facilities. Article 3. Scope of Project 3.1 Engineering and Design. GCS will serve as contracting and procuring utility for project engineering and design.The Parties will collaborate on the basis of design, hydraulic criteria, water quality objectives, materials, and standards of construction, as mutually agreed by the Parties in writing during design. 3.2 Permitting. GCS will lead permitting for facilities within its ownership and operational control; CCUA will support permitting needs, provide necessary data, and lead permitting for facilities it will own and operate. Each Party will timely apply for, obtain, and comply with all applicable Permits. Responsibility allocation for Permits shall be as set forth in this Section 3.2. 3.3 Construction and Installation. The Parties will coordinate procurement and construction in accordance with the Project design documents and good utility practice. Each Party will construct the facilities it will own, unless otherwise agreed.Work will comply with Applicable Law, safety standards, and good utility practice. 3.4 Testing and Commissioning. The Parties will cooperate in pressure testing, disinfection (as applicable to reclaimed systems), instrumentation verification, and performance testing, including meter accuracy testing and SCADA/alarm testing, all consistent with applicable regulations and manufacturer specifications. Commissioning protocols, acceptance criteria, and documentation requirements shall be as set forth in the O&M Manual. 3.5 Operations. Upon successful commissioning, the Parties will commence routine operations under Article 9. Article 4. Roles, Responsibilities, and Ownership 4.1 Ownership. Unless otherwise agreed in writing: 1. GCS will own facilities upstream of and including the GCS isolation valve at the Delivery Point. 2. CCUA will own facilities downstream of and including the CCUA isolation valve at the Delivery Point. 3. Ownership and maintenance responsibility for metering equipment will be as specified in Section 6.4. 3 4.2 Project Cost Sharing. The Parties will equally split the construction and engineering costs for the Project, with GCS administering procurement and contracting, and invoicing CCUA for its fifty percent share pursuant to Section 7.6. GCS has applied for various grants to assist in funding for the project. Any grant funds received by GCS will be shared equally with CCUA. 4.3 Access and Easements. Each Party will provide or obtain all property rights, easements, licenses, and access on property it owns or controls necessary for construction, operation, maintenance, and replacement of its facilities. For facilities crossing or located on third-party property, the Parties will coordinate to obtain required rights, with the responsible owner Party taking lead. Recording and maintenance of such rights will be at the cost of the responsible owner Party. 4.4 Coordination. The Parties will coordinate design reviews, construction schedules, outages, testing, and commissioning through project managers designated by each Party in writing. 4.5 Utilities and Power. Each Party will secure and pay for power and auxiliary utilities required to operate its owned facilities unless otherwise agreed in writing. Article 5.Water Quality; Regulatory Compliance; Sampling and Testing 5.1 Water Quality Standards. GCS shall deliver treated Reclaimed Water meeting Applicable Law(Chapter 62-610, F.A.C.)for non-potable reuse at the Delivery Point. 5.2 Compliance Obligations. Each Party shall operate and maintain its facilities in compliance with Applicable Law, including maintaining required monitoring, reporting, and recordkeeping. 5.3 Sampling and Testing. Routine sampling, frequency, methods, and locations shall be as required by Applicable Law and as set forth in the O&M Manual. GCS will perform effluent compliance sampling associated with its treatment facility permits. CCUA may perform independent sampling at or downstream of the Delivery Point. Each Party will share results relevant to inter-facility operations within five (5) business days of receipt. 5.4 Customer Uses. CCUA shall ensure that end uses of Reclaimed Water supplied by GCS comply with Applicable Law and any use-specific conditions. Article 6. Delivery, Metering, Measurement, and Reporting 6.1 Delivery. GCS will deliver Reclaimed Water to CCUA at the metering location (Delivery Point). Target pressures, flows, and operating ranges shall be established in the Operations and Maintenance Manual to be developed by the Parties upon completion of the design and construction (the"O&M Manual"). 6.2 Allocation and Curtailment. During planned or unplanned outages, or periods of limited supply, GCS may curtail deliveries based on consideration of system conditions, safety, 4 and regulatory compliance. GCS will make every reasonable effort to provide consistent service. 6.3 Interruptions. The Parties will provide advance written notice of planned interruptions ten (10) business days in advance, or as soon as practicable for emergency interruptions. Each Party will use reasonable efforts to minimize the duration and impact of interruptions. 6.4 Metering and Ownership. The Interconnect will include a 12" primary revenue-grade flow meter and totalizer at or immediately adjacent to the Delivery Point. Ownership, calibration responsibilities, meter class/specification, redundancy, and telemetry will be the responsibility of GCS. 6.5 Measurement. The Parties will rely on the primary metering for billing. Meter accuracy testing will occur at commissioning, at least annually thereafter, and upon reasonable request by either Party. If testing reveals inaccuracy beyond ±1.5%, billing adjustments for the affected period will be made using mutually agreed methods. GCS will provide annual calibration results to CCUA annually. 6.6 Reporting. GCS will provide monthly delivery reports (volume, peak flow, outages) within ten (10) days after month-end. CCUA will provide usage and distribution data reasonably requested for regulatory reporting within ten (10) days of request. Article 7. Pricing, Payment, and Audits 7.1 Bulk Rate Structure. Subject to Section 7.4, CCUA shall pay GCS a Bulk Rate for delivered Reclaimed Water equal to eighty percent(80%) of CCUA's then-current Residential Tier 1 (up to 15000 gallons per month) reclaimed water rate, adjusted as CCUA's reclaimed water rates are adjusted from time to time. 7.2 Base Charge. CCUA shall pay the applicable meter base charge at eighty percent (80%) of CCUA's then-current 12" reclaimed water meter base charge. 7.3 Indexing and Escalation. The volumetric Bulk Rate and base charge under Sections 7.1 and 7.2 shall adjust automatically concurrent with any CCUA reclaimed water rate and base charge adjustments adopted by CCUA, with the eighty percent (80%)factor applied to the then-current CCUA reclaimed water schedule. 7.4 Invoicing and Payment. GCS shall invoice monthly in arrears for volumetric deliveries and base charges. Payment is due within thirty(30) days of invoice date. Late payments accrue interest at the lesser of one percent (1%) per month or the maximum rate allowed by law. Disputed amounts must be identified within fifteen (15) days, with undisputed amounts paid when due. The Parties shall reconcile any billing disputes promptly. 7.5 Engineering Cost Share Billing. GCS shall invoice CCUA for fifty percent (50%) of engineering costs for the project actually incurred and paid by GCS, supported by documentation reasonably acceptable to CCUA, within thirty(30) days after GCS's payment to its engineer; CCUA shall pay within thirty(30) days of invoice. 5 7.6 Taxes and Fees. Each Party is responsible for its own taxes, fees, and assessments. If any tax is imposed on deliveries hereunder that cannot be lawfully exempted, the invoicing Party may pass through such tax as permitted by law. 7.7 Audit Rights. Each Party may audit the other Party's records relevant to charges under this Agreement no more than once per calendar year, upon thirty(30) days'written notice, during normal business hours. Overcharges or undercharges shall be corrected upon verification. Article 8. Capacity, Quantity, and Conditions Precedent 8.1 Capacity. The Interconnect's initial firm delivery capacity shall be 0.250 million gallons per day(MGD). The Parties shall cooperate to manage flows within design limits and to optimize reclaimed water utilization. 8.2 Minimum Purchase. No minimum purchase is required, but the Parties will work together to maximize the use of reclaimed water. 8.3 Conditions Precedent. The obligations to deliver and accept Reclaimed Water are conditioned upon: (a) receipt of all required Permits; (b) completion and acceptance of the Interconnect; (c) execution of necessary easements and access rights; and (d) satisfaction of any funding or procurement requirements of the Parties. Article 9. Operations, Maintenance, and Emergencies 9.1 O&M Responsibilities. Each Party shall operate and maintain its owned facilities in good working order, consistent with good utility practice, manufacturer recommendations, and the O&M Manual. 9.2 Telemetry and Communications. The Parties will coordinate telemetry, alarms, and data exchange as provided in the O&M Manual. Each Party will maintain reliable communications for outage notices and emergency coordination. 9.3 Emergency Repairs. In the event of an emergency threatening public health, safety, or environmental compliance, the affected Party shall take immediate action to stabilize conditions and promptly notify the other Party. The Parties shall cooperate to restore service as soon as practicable. Costs are borne by the owner of the failed facility, unless the emergency was caused by the other Party's negligence or willful misconduct. 9.4 Planned Maintenance. Each Party will schedule planned maintenance to minimize service impacts and will coordinate timing through the project managers. Article 10. Term and Termination 10.1 Term. The initial Term of this Agreement shall be ten (10)years from the Effective Date, unless earlier terminated as provided herein.Thereafter, this Agreement shall automatically renew for successive five (5)-year terms unless either Party provides written 6 notice of non-renewal at least one hundred eighty(180) days prior to the end of the then- current term. 10.2 Termination for Convenience. Either Party may terminate for convenience effective at the end of the then-current Term by providing written notice at least one hundred eighty (180) days before term expiration. 10.3 Termination for Cause. Either Party may terminate for material breach if the breach remains uncured sixty(60) days after written notice describing the breach, or, if not reasonably curable within sixty(60) days, if diligent cure is not commenced within such period and completed within one hundred twenty(120) days thereafter. 10.4 Effect of Termination. Upon termination, (a) all amounts due and owing remain payable; (b)the Parties shall cooperate in an orderly wind-down; and (c) ownership of facilities shall remain as of record unless otherwise agreed. Any disconnection work at the Delivery Point shall be coordinated and each Party shall restore its system to a safe condition at its own cost. Article 11. Insurance, Indemnification, and Liability 11.1 Insurance. Each Party shall maintain insurance or self-insurance customary for Florida public utilities of comparable size and risk, including coverage for general liability and workers' compensation, consistent with Florida law. Evidence of coverage shall be furnished upon request. 11.2 Indemnification. To the extent permitted by Florida law and subject to the limitations of Section 768.28, Florida Statutes, each Party shall be responsible for its own negligent acts or omissions and those of its officers, employees, and agents in connection with this Agreement, and shall not be liable for the acts or omissions of the other Party. Nothing herein shall be construed as a waiver of sovereign immunity or as consent to be sued beyond the limits set forth in Section 768.28, Florida Statutes. 11.3 Limitation of Liability. Neither Party shall be liable to the other for special, indirect, incidental, exemplary, punitive, or consequential damages, including loss of profits or revenues, arising out of or in connection with this Agreement. Article 12. Force Majeure 12.1 Suspension. A Party affected by a Force Majeure event shall be excused from performance to the extent and for the duration affected, provided it gives prompt notice describing the event, expected duration, and mitigation steps, and uses due diligence to remove the cause and resume performance. 12.2 Payment Obligations. Force Majeure shall not excuse timely payment for services already rendered and invoiced except to the extent invoicing is delayed by the Force Majeure event. 7 Article 13. Dispute Resolution 13.1 Informal Resolution. The Parties will first attempt in good faith to resolve disputes through negotiation between their project managers and, if unresolved, escalation to senior leadership designated by each Party in writing. 13.2 Mediation. If not resolved within thirty(30) days after escalation, either Party may request non-binding mediation with a mutually acceptable mediator in Clay County, Florida. Each Party shall bear its own costs and share mediator fees equally. 13.3 Litigation; Venue. If mediation is unsuccessful, either Party may seek relief in a court of competent jurisdiction. Governing law is Florida law, and venue lies exclusively in the state courts of Clay County, Florida. Article 14. Notices 14.1 Form; Delivery. All notices must be in writing and delivered by hand with receipt, certified mail(return receipt requested), reputable overnight courier, or verified government email addresses, to the following: 1. For CCUA: Executive Director, 3176 Old Jennings Rd., Middleburg, FL, 32068, Email: jjohnston@clayutility.org 2. With copy to: CCUA Attorney, 1543 Kingsley Ave., Bldg. 5, Orange Park, FL 32073, Email: grady@floridaelder.com 3. For GCS: City Manager, 321 Walnut Street, Green Cove Springs, Florida 32043, Email: mnull@greencovesprings.com. 4. With copy to: City Attorney, John W. Wallace, 321 Walnut Street, Green Cove Springs, Florida 32043, Email:jwallace@greencovesprings.com. 14.2 Effectiveness. Notices are effective upon receipt or refusal. Article 15. Public Records; Sunshine; Records Retention 15.1 Public Records. The Parties shall each comply with Florida's public records laws, including Chapter 119, Florida Statutes. Records made or received in connection with this Agreement shall be retained and produced in accordance with Applicable Law. 15.2 Sunshine. To the extent applicable, meetings of the Parties' boards or commissions addressing this Agreement shall comply with Florida's open meetings requirements. Article 16. Assignment; Amendment 16.1 Assignment. Neither Party may assign this Agreement or any rights or obligations hereunder without the prior written consent of the other Party,which consent shall not be unreasonably withheld, conditioned, or delayed; provided that assignment to a successor governmental utility is permitted upon thirty(30) days' notice. 8 16.2 Amendment.This Agreement may be amended only by a written instrument executed by both Parties. Article 17. Miscellaneous 17.1 Entire Agreement. This Agreement, including its exhibits, constitutes the entire agreement between the Parties regarding the subject matter and supersedes prior discussions and understandings. 17.2 Severability. If any provision is held invalid, the remaining provisions shall remain in full force and effect. 17.3 Waiver. No waiver shall be effective unless in writing and signed by the waiving Party. No waiver of any breach constitutes a waiver of any other or subsequent breach. 17.4 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which is an original and all of which together constitute one instrument. Electronic signatures are deemed originals. 17.5 Authority. Each individual executing this Agreement represents that they are duly authorized to bind their respective Party. 17.6 No Third-Party Beneficiaries. There are no third-party beneficiaries to this Agreement. 17.7 Filing; Recording. Prior to its effectiveness, this Agreement, and any subsequent amendment, shall be filed with the Clerk of the Circuit Court of Clay County, Florida, as required by Section 163.01(11), Florida Statutes. Article 18. Exhibits The following exhibit is incorporated by reference and made a part of this Agreement.The Parties acknowledge that Exhibit A, together with any additional exhibits (including technical specifications, project scope and schedule, rate schedules, points of contact, and forms of easements), may be finalized and attached by mutual written agreement as the Project progresses. The absence of any exhibit that has not yet been finalized shall not affect the validity or enforceability of this Agreement. In the event of any conflict between an attached exhibit and the body of this Agreement, or where a referenced exhibit has not been attached, the terms of the body of this Agreement shall govern. Exhibit A—Delivery Point and Site Plan (legal description, plan view, and metering location on or near Russell Road), to be attached when finalized. 9 Signatures IN WITNESS WHEREOF, the Parties have executed this Interlocal Agreement as of the Effective Date. City of Green Cove Springs, Florida By: Name: Darren Stutts Title: Mayor Date: Attest: Erin West, City Clerk Approved as to form: John W. Wallace, City Attorney Clay County Utility Authority By: Name: Jeremy D. Johnston, PE, MBA Title: Executive Director Date: Attest: Janice Loudermilk, Secretary Approved as to form: Grady H. Williams, Jr., CCUA Attorney 10 EXHIBIT A fp q(N.,,..........s...„. \141114w z l'7,041tp, ''''...:44.,,N4t\\\ \ ,4, roximate... ...„t,. ,,,... s . 4�1 ' , Dlivr Pint illbik �.�..,: �r e e y o k *. :::::,---..''',.::',.!. 4"..44‘.4r,--0,' '' 's;,.......,.. 4kt\Ne•:\4;\ 4,r- # fiw No Alob;-,z3,.;.,,.- ..141,, kr A, .---,,.40. laiii4,' dk z.*,-7,1 # es +/- 2,500 ft. \' =� \;.,,,,:;,l ���F 12" RWM414 dilift. v. S == 14‘ r .• lik, ... 1 ■■i .... •is�.� :..•, 4111 ru.I COUNT.Y-ROAD 315- '1. �, _'- 01 i jam'=i C,TAr ..I 1.1..1.. d i�llo ll J'A'