Agenda Item 8A - MOACITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM II 8t\
JUL Y 14.20 14
AGENDA ITEM: Memorandum o f Agreeme nt Betwee n Cit y of Atl anti c Bea ch and No rth
Fl orid a Utility Co ordin ation Group (N FUC G)
SUBMITTED BY: Donna Kalu zni ak., Utility Dire cto~
DATE: June 13,2014
BACKGROUND: Th e St. John s Ri ver Water Manage ment Di stri ct (S JRWMD ) has bee n
und ert akin g a wa ter suppl y pl annin g process, al ong with st ud ies o r minimum tl ows and leve ls
(MFLs) for are a lakes and sprin gs. The Su wa nn ee R ive r Wate r Mana gem e nt Di stric t (S RWMD ) has
also been workin g on th e ir wa ter s uppl y is s ues. SRWMD is in th e process of setting MfLs for area
rivers and springs. MFL s are adopted by th e Wat er Manage ment Di stri cts to prevent harm to th e
wa ter reso urces o r ec ology o f an ar ea that co uld res ult fr om pe rmitted wa ter withdrawals .
To accompli s h th is wor k, th e Dis tric ts use g rowth proj ecti ons, groundwater a nd reso ur ce mode li ng
and oth er com p lex technical meth ods to de te rmin e futu re groun dwate r ava il ab ilit y and imp ac ts of
withdra wal s. Res ult s of th e Di stri cts' Wa ter Sup ply Plans and MFLs ca n have a hu ge imp ac t on t bc
Cit y's futur e wat er infras tru ctur e and cos t.
T he City Co mmi ss io n prev ious ly approved a n agree ment wi th th e NFUCG on Jun e 8, 2009 and
upd ated the ag ree ment in Dece mb er 20 11 . Thi s is a furth er upd ate to the ag re ement to enco mpass
current iss ues a nd proj ec ts.
Th e North Fl orida Utility Coordin ati on Group (N FUCG) is co mp osed of eig ht utiliti es in No rth eas t
Florid a. To ge ther, we se rve ove r a milli on peop le:
J F:A
Cit y of Atl anti c Beach
Cit y of Ne ptun e Beach
Cit y of Jac kso nvill e Beach
Cla y Co unt y Ut ilit y Auth o rit y
Cit y of Gain es vi ll e
Town o f Ora nge Park
St. John s Co unt y
T hese utiliti es form ed th e NFUCG in ord er to speak as one vo ice to the Wate r Ma nageme nt Di stri cts.
T he group also shares th e cos t for e nginee ring and lega l as sistance to dete rmin e the most acc ur ate
and reliabl e groundwat er reso urce projections an d to rev iew poli cy activities.
All water utiliti es p lace protection of our water resour ces at the hi ghe st leve l. Yet water utiliti es have
the add ed res ponsibilit y of pro vidin g th e mo st cos t-effec ti ve pr odu ct to our customers.
AG I\NDA ITEM # 8A
J ULY 14 ,20 14
In order to me et these objectives , the group hired techni ca l expe11s to wo rk with th e Water
Management Distri cts on th e Water Suppl y Plan, MFLs a nd other wate r i ss ues. The NFUCG a lso
engaged lega l expe rt s to adv ise us on po licy and reg ulatory issues .
JEA is des ignated to administer the contracts, usin g their existing continu ing engineering and legal
con tracts. Cos ts are reimbursed by th e membe r uti liti es based on propo rtional ann ual average daily
Oows. Atlantic Beach's reimbursement will be 1.36% of th e tota l cost.
BUDGET: The tota l annu al cost for co nsult an ts is es tim ated at $835 ,000 for FY 14 and $700,000 pe r
yea r for FY 15 throug h FY 17. At lant ic Beach's reimbursement porti on wo uld equate to $11,375 for
FY14, and $9,536/year over th e next 3 years. Fun ds arc ava il ab le in the Water Fund in t he
Professio nal Serv ices Account No. 400-5502-533-3 100 ror th e current year and requested for th e
coming years .
REC OMM ENDAT IO N: Approve th e Memo ra ndum o r Ag reemen t between J EA, the C it y of
At lant ic Beac h, Ci ty ofNeptune Bea ch , Cit y of Jackso nvill e Beach , Clay Co unty Util ity Aut hority,
C ity of Ga in esv ill e, Town of Orange Park and St. John s Cou nty to Assess Groundwater Reso urce
S ustainability in No rth east Flor ida and a uth ori ze th e Cit y Manager to s ign th e Agreement.
ATTACHMENTS : I .
2.
NFUCG Sunm1ary of Activ iti es and Accomplishments
Memo randum of Agreement
REV IEWED BY CITY MANAGER:_/1._.:.....•__;~:.._~=>o<::...::;;....;..._~-~---'-· --------
2
North Florida Utilities Coordination Group
Summary of Activities and Accomplishments as of June 2014
Rulemaking Participation
AGENDA ITEM# 8A
JULY 14, 2014
• Participated in several Rule-Making processes, including the statewide Consumptive Use
Permit Consistency Rule (CUPCON), which was passed by SJRWMD Board on 6/10/14.
Educational Assistance
• We educated stakeholders and both Water Management Districts on utility concerns,
such as the need for long range planning to fund major capital projects-and the need
for certainty with regard to the sustainable availability of water for our customers.
SJRWMD Water Supply Plan
• Policy review and technical analysis regarding the proposed Water Supply Plan that
includes the entire Northeast Florida Region as a Water Resource Caution Area.
Minimum Flows and Levels (MFLs)
• Clay/Putnam County MFLs-We participated in numerous Technical Group, Modeling
Group, Implementation Workgroup and Stakeholder committee meetings. Our
engineers provided technical and modeling work to:
o Demonstrate the importance of long-term climatic cycles on water levels and
MFLs
o Provide more scientifically defensible MFLs
o Develop low cost, feasible solutions
• Lower Santa Fe and ltchetucknee Rivers MFLs-Concurrently, NFUCG and our
consultants have been working with the Suwannee River Water Management District
(SWRMD) along with SJRWMD and the Department of Environmental Protection (DEP)
on MFLs for the Lower Santa Fe River and ltchetucknee Rivers and other springs. Similar
to our work with the Clay/Putnam MFLs, we have participated in numerous meetings,
conducted engineering work and provided information and presentations.
o NFUCG hired a consultant to conduct an MFL Economic Analysis of SRWMD's
proposed prevention/recovery strategy.
o We provided critical review of the Lower Santa Fe River MFLs and helped DEP
develop a feasible Recovery Strategy, with estimated compliance costs
o Quantified the benefits of Public Supply conservation in North Florida
• North Florida Regional Supply Partnership-provided engineering, technical and legal
services related to a joint Groundwater Flow Model for the two Water Management
Districts. Included work on MFL Prevention/Recovery Strategy.
AGENDA ITEM # SA
JULY 14,2014
• North Florida/Southeast Georgia Model Development-we helped charter the next
generation groundwater model for North Florida and Southeast Georgia. We provided
technical review on models showing the effect of withdrawals from the Floridan Aquifer
in Southeast Georgia, which impact the North Florida region.
Looking Ahead 2015 through 2017
The NFUCG will continue to work with the two Water Management Districts technically as well
as providing policy and legal review of potential regulations. Some of the planned items include:
• Reevaluation of the Clay-Putnam MFLs and Prevention Plan
• Completion of the North Florida Southeast Georgia Groundwater Model
• Technical work on the North Florida Regional Water Supply Partnership Water Supply
Plan
o Demand Projections
o Water Resources Assessment
o Strategies and Project Evaluations
o Apportionment
• Technical review of SRWMD's Union/Bradford County Lake MFLs
• Reevaluation of Lower Santa Fe River MFL and Recovery Strategy
• Springs and Outstanding Florida Water Legislation-technical and legal reviews
2
MEMORANDUM OF AGREEMENT
BETWEEN
AGENDA ITEM# 8A
JULY 14,2014
CITY OF ATLANTIC BEACH, CLAY COUNTY UTILITY AUTHORITY, CITY OF
GAINESVILLE, CITY OF JACKSONVILLE BEACH, JEA, CITY OF NEPTUNE
BEACH, TOWN OF ORANGE PARK, AND ST. JOHNS COUNTY
TO ASSESS GROUNDWATER RESOURCE SUSTAINABILITY IN NORTHEAST
FLORIDA
WHEREAS, the St. Johns River Water Management District (SJRWMD) and the
Suwannee River Water Management District (SRWMD) are undertaking and continuing water
supply planning processes using growth projections, groundwater and resource impact models,
and other technical tools that will affect local governments and utilities throughout the region
and specifically developing MFL Prevention and Recovery Plans that local govemments and
utilities may be a pmiicipant; and
WHEREAS, the City of Atlantic Beach, Clay County Utility Authority, City of
Gainesville, City of Jacksonville Beach, JEA, City of Neptune Beach, Town of Orange Park, and
St. Johns County (hereinafter referred to as "OWNERS"), desire to jointly and collaboratively
evaluate regional long-term sustainability of groundwater resources to meet future public water
supply needs relative to the St. Johns River Water Management District's (SJRWMD) and
Suwannee River Water Management District's (SRWMD) water supply planning processes; and
WHEREAS, the OWNERS support protecting and sustaining the natural systems and
groundwater resources; and
WHEREAS, the OWNERS have a responsibility to provide cost effective public water
supply alternatives; and
WHEREAS, it is more efficient for the OWNERS to cost share in this effmi and to avoid
duplication of effort; and
WHEREAS, the OWNERS need to engage engineering consultants and legal suppmi
services and desire to designate JEA to administer these contracts; and
WHEREAS, pursuant to Section 21.04(t) of the City of Jacksonville Charter, JEA is
authorized to provide the services described herein; and
WHEREAS, the OWNERS have agreed to enter into this agreement (the "Agreement")
for the purpose of setting forth the terms and conditions which will govern their mutual
obligations in furtherance of the foregoing Recitals; and
WHEREAS, the OWNERS, and the City of Green Cove Springs had previously entered
into that certain Memorandum of Agreement Between City of Atlantic Beach, Clay County
Utility Authority, City of Gainesville, City of Green Cove Springs, City of Jacksonville Beach,
JEA, City of Neptune Beach, Town of Orange Park, and St. Johns County to Assess
Groundwater Resource Sustainability in Northeast Florida (the "2011 MOA"). The 2011 MOA
Page 1 of14
AGENDA ITEM# SA
JULY 14, 2014
was to terminate on September 30, 2014. Upon execution of this Agreement the 2011 MOA
shall terminate as of the Effective Date of this Agreement and the parties shall be bound only by
this Agreement and not the 2011 MOA.
NOW, THEREFORE, the OWNERS and JEA agree as follows:
1. The foregoing Recitals are true and correct and are incorporated herein by this
reference to the same.
2. Services. JEA hereby agrees to administer consultant and legal services contracts
for the OWNERS as described in the Scope of Services (the "Scopes"), which will be attached as
consultant Exhibit A hereto, after being approved and finalized by JEA and all OWNERS, and
which shall become a part hereof when attached hereto. The OWNERS and JEA understand that
Exhibit A may be modified and/or additional Scopes may be added at a future date, in
accordance with the provisions set forth in paragraphs 4, 6 and 8 herein. In the role of
administrator ofthe consultant and legal contracts, JEA will (1) act as the primary contact for the
contracts, (2) will relay the prioritization of tasks as set by the OWNERS, (3) coordinate
progress meetings and other activities relating to project status and (4) pay the invoices
submitted by the consultants, subject to the reimbursement of the costs by the other OWNERS,
in the percentages as set forth in paragraph 6 herein.
3. Limitations. Prioritization of tasks included in the Scopes and overall direction
to consultant and legal service providers will be dete1mined jointly by the OWNERS. Decisions
will require at least 5/8 (0.625) majority vote of the OWNERS before JEA directs consultants
accordingly. Each OWNER will have one vote. JEA will coordinate regular progress meetings
for conference calls and meetings with consultant and legal service providers to provide
OWNERS with project status updates and obtain OWNER votes, as needed.
4. Costs. OWNERS shall be limited to an overall, combined total cost not to exceed
$2,935,000 over the term of this Agreement (the "Total Costs Amount"). These costs are
anticipated to be incurred at approximately $835,000 for Fiscal Year 2014 and $700,000 per year
for the following full three (3) years of the Agreement (Fiscal Years 2015, 2016 and 2017).
Exhibit A contains a draft scope of services for these activities. This scope will be updated and
adjusted as needed by the committee. Decisions to add additional services within the Scopes,
but subject to and limited by the Total Costs Amount, will require at least a majority vote of the
OWNERS. The addition of Scopes above the Total Costs Amount will require written
modification of this Agreement and the approval of the OWNERS by at least a 5/8 (0.625)
majority vote. In the event that additional Scopes above the Total Costs Amount are so
approved, any dissenting OWNER may elect to withdraw from this Agreement in accordance
with the requirements of paragraph 1 0 hereof.
5. Effective Date. The Effective Date of this Agreement shall be July 11,2014.
6. Reimbursement of Expenses. OWNERS will reimburse JEA on up to a monthly
basis and within 30 days of invoicing by JEA in consideration of this Agreement based on actual
costs incurred during the preceding period. Costs to each OWNER will be paid proportionally to
Page 2 of 14
AGENDA ITEM# 8A
JULY 14,2014
each utility's 2012/2013 total annual average daily flow for the duration of this Agreement, as
follows:
Table 1: Revised Total FY 2014 Cost
2012-2013 Reimbursement Total FY2014
Owner AADF {MGD) {%) Cost
City of Atlantic Beach 2.08 1.36 $ 11,375.53
Clay County Utility Authority 10.91 7.15 $ 59,708.50
City of Gainesville 22.45 14.72 $ 122,880.60
City of Jacksonville Beach 2.39 1.57 $ 13,072.47
JEA 101.87 66.77 $ 557,518.37
City of Neptune Beach 0.91 0.59 $ 4,953.85
Town of Orange Park 0.90 0.59 $ 4,910.22
St. Johns County 11.07 7.26 $ 60,580.47
Total 152.57 100 $ 835,000
Note: FY14 total cost includes $500,000 from 2011 MOA + $335,000 from this
modification
Table 2: Total FY 2015-FY 2017 Cost
2012-2013 Reimbursement
Owner AADF {MGD) {%) Annual Cost
City of Atlantic Beach 2.08 1.36 $ 9,536.37
Clay County Utility Authority 10.91 7.15 $ 50,055.03
City of Gainesville 22.45 14.72 $ 103,013.67
City of Jacksonville Beach 2.39 1.57 $ 10,958.96
JEA 101.87 66.77 $ 467,380.67
City of Neptune Beach 0.91 0.59 $ 4,152.93
Town of Orange Park 0.90 0.59 $ 4,116.35
St. Johns County 11.07 7.26 $ 50,786.02
Total 152.57 100 $ 700,000
Table 3: Total Cost
FY2015 -FY2017
Owner FY2014 Cost Cost Total Cost
City of Atlantic Beach $ 11,375.53 $ 28,609.11 $ 39,984.64
Clay County Utility Authority $ 59,708.50 $ 150,165.09 $ 209,873.58
City of Gainesville $ 122,880.60 $ 309,041.02 $ 431,921.62
City of Jacksonville Beach $ 13,072.47 $ 32,876.87 $ 45,949.33
JEA $ 557,518.37 $ 1,402,142.01 $ 1,959,660.39
City of Neptune Beach $ 4,953.85 $ 12,458.78 $ 17,412.63
Town of Orange Park $ 4,910.22 $ 12,349.05 $ 17,259.26
St. Johns County $ 60,580.47 $ 152,358.07 $ 212,938.54
Total $ 835,000 $ 2,100,000 $ 2,935,000
Page 3 of 14
Total FY2015-
FY2017 Cost
$ 28,609.11
$ 150,165.09
$ 309,041.02
$ 32,876.87
$ 1,402,142.01
$ 12,458.78
$ 12,349.05
$ 152,358.07
$ 2,100,000
AG ENDA ITEM II SA
JULY I ll , 20 14
JEA will no t charge OWNER S any additi ona l fees fo r co ntract adminis trati o n. If any OWNER
fa il s to re imbu rse JEA for its perce nta ge sha re, interes t s hall be assessed at the rate of 8% per
year. rfa n OWN ER fail s to pay it s pe rcen tage share fo r two (2) co nsec ut ive mont hs, thi s MOA
shall be vo id as betwee n J EA and such Defa ultin g OWN ER. Defa ulti ng OWNER shall
th erea ft e r cease to be a part of t he OWN E RS gro up , and shall not be e ntitl ed t o atte n d any
meetin gs , have any vo te on matters, and obt ain any informati on o r report s prepar ed by
co nsult a nts. Th e Defa ultin g O WN ER s hall con tinu e to be li ab le to J EA fo r pay ment o f it s
perce ntage share o f th e costs in c ur re d, p lu s accru ed interest. If an OW NE R cl efa ull s or sep a rates
from the g roup in acco rd ance with paragraph 10, J EA sh a ll re-a ll ocate th e re imbursement
percent ages set fo rth above, and eac h O WNE R sha ll th ereafte r be responsibl e for the r evised
percent age o r th e fees.
l n li eu o f cos t reim burse ment, JEA may all ow OWN ERS to prov id e in-kin d ser vices, on a case-
by-case bas is, a nd as un an im ous ly ag ree d by OWNE RS when sa id in-k ind serv ices have or will
direc tl y s upp ort and offset cos ts of the Scopes within th e limit ati ons of th e To ta l Cos ts A mo unt
in parag raph 4 above and any appr oved ad dit io nal se rvices .
7. Notification. Co rr es po ndence to J EA, project ad ministr ation qu es ti ons , a nd
pay ment, as we ll as any ot her no tice, sha ll be di rec ted as fo ll ows:
Paul Ste in brecher, PE
JE A
2 1 W. C hurch St. T-8
Jackso nville , f lo rid a 322 02
(904) 665-5653
s tei pk @ jea .com
No tices to a nd fr om th e o th er OWN ERS and vo ti ng s hall be made by th e foll ow in g indi viduals,
o r a des ignee o f eac h res pec ti ve OWN ER, at th e addres ses show n:
Donn a Kalu zniak
Utilit y Directo r
C it y o r At lanti c Beach
902 Ass is i Lane
Atl anti c Beac h, Fl orid a 32233
(9 04 ) 270-2535
<.lka l u~.:niak(@.coab.u s
Tom Morri s
Exec uti ve Director
Clay Co unt y Utility Aut hor ity
3 176 O ld .Jennin gs Roa d
Middl eburg, Florid a 32068
(904) 272-5999
tm orr is@c lavut ilitv.o rg
Ma rk F. Gree nwoo d
Plants Di vis ion Supe rv isor
City of Ne ptune Beach
201 0 Fores t A ve nu e
Nep tun e Beach, Florid a 32266(9 04 ) 270-
2423
mgrcenwooct@nent un e-bea ch.com
Chuck Pav lo s
Publi c Work s Dir ec tor
Tow n of Orange Park
2042 Park A ve nu e
Ora nge Pa rk , Flori da 32 073
(904) 264 -7 411
cpav los @tow non .com
Page 4 of 14
TyEdwards
Public Works Dire ctor
City of Jac ksonv ill e Beach
1460A Shetter A ve nu e
Jackso nville Beac h, Florida 32250
(904) 24 7-62 19
tedwardsl@ iax bc hn .nct
Ronald Herget
Assistant General Manager,
Water/Wastewate r Systems
Cit y of Ga in esv ille
301 SE 4th Avenue
Ga ine sv ille, Florida 3260 I
(904) 393-16 12
hern.e trg@g ru .co m
Bill Young
Uti li ty Di rec tor
St. Johns Cou nty
1205 SR 16
St. Aug ustin e, F lo ri da 32084
(904) 209-2700
bvo un g@.s ictl.us
AGENDA ITEM 1/ Rt\
JUL Y 14 ,20 14
8. Mo dific at ion. T hi s Agreement may be mod i lied only upon mutua l, written
agree men t signed by a ll of t he OWNERS.
9. A dditionnl Parties as OWNERS. OWNERS may be added to th e Agreemen t in
the future. Dec is ions to add addit ional OWNERS will require at least a 5/8 (0 .625) majority vote
of the OWNERS. If an OWNER is added, JEA shall re-a llo ca te th e reimbursement pe rcentages
se t forth in pa rag rap h 6 above, an d each OWNER sha ll thereafte r be respons i ble for th e rev ised
perce nt age of th e fees. OWNERS may a lso agree to a ll ow part icipation of other entiti es in thi s
co ll abo rative effort with out becoming an OWNER and at no cos t, but onl y afte r unanim ous
agree men t by OWNERS.
10. Separation. Any OWNER may with draw fr om thi s Agreeme nt before
term ination by giving not less than 30 days' written notice to all OWNERS. In the event of
withdrawa l, the wi thdraw in g OWNER shall be respo ns ible for it s share or a ll services up to the
date of termin ation p lus its re maining sha re of active pha se(s) of work bein g pe rformed und e r the
Scopes. Payment in f-u ll for th e rema in ing balance sha ll be du e within thirty (30) da ys of
separa tion . The withdrawing OWNER will not be respons ib le for cos ts assoc iated with any
ph ases of th e Scopes not ye t s tart ed and future cos ts for p hases not ye t started will be
red istri buted among th e remaini ng OWNERS wit hin th e limita ti ons of th e Annual Cost and
To tal Cost Amou nt OWNER a llo cati on described above.
11. Exec ut ion. Thi s Agreement may be executed in multip le counterpart s, each of
which shal l be co nsi dered an origina l documen t for a ll purposes .
12. Term ination. T hi s Ag ree ment s ha ll tennin ate on Septe mb er 3 0, 20 17 or upo n
the co mple ti o n of the Scopes, wh ichever s ha ll fir st occu r, unl ess terminated earli er by th e
procedures set for th herein. In the event of te rmination before comp letion of the Scopes, the
OWNERS sh all be respo nsible for the ir re spec ti ve shares of se rvices performed to th e date of
termin ation , and no compensation prev iously paid fo r services pe rformed in acco rdance with thi s
Agreement sha ll be refund able by JEA.
Page 5 of 14
Signature Pages Follow:
AGREED TO on this 11th day of July, 2014
AGENDA ITEM# SA
JULY 14,2014
Memorandum of Agreement to assess groundwater resource sustainability in Northeast
Florida
Page 6 of 14
DATE: CITY OF ATLANTIC BEACH
Nelson VanLiere
City Manager
City of Atlantic Beach
800 Seminole Rd.
Atlantic Beach, Florida 32233
Page 7 of 14
AGENDA ITEM# 8A
JULY 14, 2014