Agenda Item 9AAGENDA ITEM # 9A
SEPTEMBER 12, 2011
September 6, 2011
MEMORANDUM
TO: The Honorable Mayor
and Members of the Commission
FROM: Jim Hans g
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SUBJECT: City Man er's Report
Emer2ency Repair of Sewer Main between Willow Cove Court and Mimosa Cove Court Emergency
purchase orders to Gruhn May Inc. (the City's annual contractor) were approved on August 22 and 23,
2011 due to a collapsed sewer main running in an easement between Willow Cove Court and Mimosa
Cove Court. This is an old cast iron main that failed in the same way as the cast iron main on Selva
Marina Drive recently. The top of the entire 160 foot length of pipe deteriorated and caved in. Failure of
the pipe at this location creates sewer backups in the entire upstream area, including Admirals Walk and a
part of the Cypress Cove Subdivision.
This sewer main is very deep and runs in an easement between homes. A total of $10,000 was approved
on August 22 for bypass pumping. Upon determining that the entire main was collapsed, an additional
$70,053.00 was approved to replace the sewer main itself. This is being reported to the City Commission
because it exceeds the limit for City Manager approval of normal purchases.
State SRF Funding for Remaining Portions of Wastewater Project The City has received notice from
the State Department of Environmental Protection, Division of Water Facilities Funding, that the previous
agreement for SRF funding for the wastewater plant improvements will be amended to include an
additional $2,440,816 related to the sludge and odor control upgrades s at the wastewater plant. This
means that the interest rate for borrowing these funds will be considerably lower than under conventional
bank financing. As reported in the recent budget workshops, the lower interest rates for other portions of
the wastewater project, along with the bids coming in considerably under budget, will result in future debt
payments well under previous estimates. Ultimately, this translates into lower rates for water and sewer
service to Atlantic Beach customers.
AGENDA ITEM # 9A
SEPTEMBER 12, 2011
Florida Department of Gower noor r
Governor
Environmental Protection Jennifer Carroll
Lt. Governor
Bob Martinez Center
2600 Blair Stone Road Herschel T. Vinyard Jr.
Tallahassee, Florida 32399 -2400 Secretaiy
August 25, 2011
Mr. Nelson Van Liere
Finance Director
City of Atlantic Beach
800 Seminole Road
Atlantic Beach, Florida 32233
Re: WW160700 - Atlantic Beach
Treatment & Transmission Facilities (Upgrade WWTP #1 & Abandon WWTP #2)
Dear Mr. Van Liere:
Enclosed are three original copies of proposed Amendment 1 to your State Revolving Fund
loan agreement. The amendment provides an additional $2,440,816 for this project.
Please have the appropriate officials sign and seal the enclosed three copies and return them to
us within three weeks at 2600 Blair Stone Road, Mail Station 3505, Tallahassee, Florida,
32399 -2400. We will arrange for the Deputy Division Director to sign the documents and mail a
fully executed original to you. If the signed amendments are not received by us before
October 1, 2011, this additional loan amount may be subject to a higher interest rate. If you
have any questions regarding this amendment, please call Lekenyia Beal at (850) 245 -8358.
Sincerely,
/,, /<
Robert E. Holmden, P.E., Chief
Bureau of Water Facilities Funding
RH /lb
cc: Jim Hanson - City of Atlantic Beach
Donna Kaluzniak - City of Atlantic Beach
Ilflvlv dep.srale.fl. us