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County Administrator's Report 11. 16.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning the First Amendment to the Memorandum of Agreement Between Escambia County, the Emerald Coast Utilities Authority, and the Creekwood Homeowners' Association of Pensacola, Inc., Relating to a Wastewater System Improvement Project - Joy Jones, P.E., Engineering Department Director
That the Board authorize the Chairman to sign the First Amendment to the Memorandum of Agreement between Escambia County, the Emerald Coast Utilities Authority (ECUA), and the Creekwood Homeowners' Association of Pensacola, Inc., relating to a Wastewater System Improvement Project to increase the Agreement from $624,875, to an allowable increased amount of $687,362.50 (10%).
[Budgetary Impact: In order to fund the project before collecting Municipal Services Benefit Unit (MSBU) assessments from property owners, an inter-fund loan from Local Option Sales Tax (LOST) III Fund 352 to the MSBU Fund 177 was approved by the Board, meeting in regular session on December 6, 2018, in the amount of the original project estimate of $624,875. At the regular Board meeting on June 20, 2019, the Budget Office is bringing forward a Supplemental Budget Amendment to increase this loan by $62,488. Escambia County agrees to reimburse ECUA, via the established Interfund loan, for project costs up to $687,362.50]
This project is located in Commission District 5. |
| BACKGROUND: |
As a result of multiple sewer overflows with the Creekwood Subdivision Lift Station in the past, the Emerald Coast Utilities Authority (ECUA) and the Creekwood Subdivision Homeowners' Association (HOA), identified a need to make repairs to the existing system and to repair/construct a new sanitary sewer lift station.
Escambia County, ECUA, and the HOA are working in partnership, via a Memorandum of Agreement (MOA), approved by the BCC on December 14, 2017. This MOA established a maximum amount of $625,000 for the design and repair/construction including re-engineering and reconstructing a sanitary sewer lift station facility in the Creekwood Subdivision.
Escambia County established a Municipal Services Benefit Unit (MSBU) at the May 25, 2017, BCC meeting for $624,875. Via an interfund loan, approved by the Board on December 6, 2018, the County is advancing the funds necessary to design and repair/construct including re-engineering and reconstructing a sanitary sewer lift station facility in the Creekwood Subdivision.
The approved MSBU stated, “The actual assessment may vary as much as 10% more than the amounts described above without the need to re-petition affected property owners.” This would allow the total cost of the project to increase to $687,362.50 without any modification to the petition or the established MSBU. This could take the estimated cost per lot from $469.08 (with capitalized interest) to $515.07 (with capitalized interest).
During construction and following the required interior cleaning procedure, it was found that the condition of the existing lift station wet well was in a heightened state of disrepair compared to initial estimations. Over the years, hydrogen sulfide (H2S) gas (a by-product from wastewater) has eroded the concrete wet well in multiple locations, ultimately allowing groundwater to enter the structure. The correction of this structural issue, and further preparation of the inner wall of the wet well for the application of an H2S resistant coating, has caused the need for additional, costly bypass pumping time. With the repairs currently underway, the estimated additional cost, due to the condition of the wet well, is approximately $53,000.
Though the MSBU does not require any modifications, the Budget Office is bringing forward, at this meeting, a Supplemental Budget Amendment to increase the interfund loan to $687,362.50, and the MOA will require an approved increase from $625,000 to $687,362.50. |
| BUDGETARY IMPACT: |
| In order to fund the project before collecting Municipal Services Benefit Unit (MSBU) assessments from property owners, an inter-fund loan from Local Option Sales Tax (LOST) III Fund 352 to the MSBU Fund 177 was approved by the Board, meeting in regular session on December 6, 2018, in the amount of the original project estimate of $624,875. At the regular Board meeting on June 20, 2019, the Budget Office is bringing forward a Supplemental Budget Amendment to increase this loan by $62,488. Escambia County agrees to reimburse ECUA, via the established Interfund loan, for project costs up to $687,362.50. |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| The Amendment to the Memorandum of Agreement has been approved by the County Attorney’s Office. |
| PERSONNEL: |
| No additional personnel will be required. |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| N/A |
| IMPLEMENTATION/COORDINATION: |
| Escambia County staff will continue to work with ECUA and the HOA. |
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