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Duval Beaches Regional Sewer Utility v \ \.• INTERLOCAL AGREEMENT CREATING THE _t DUVAL BEACHES REGIONAL SEWER UTILITYN. Y THIS INTERLOCAL AGREEMENT, made this ((i kay of leg" , 1989, by and between the CITY OF ATLANTIC BEACH, THE CITY OF JACKSONVILLE BEACH, AND THE CITY OF NEPTUNE BEACH, all of the State of Florida; WITNESSETH : WHEREAS, the parties hereto share a common need for additonal sewage treatment and disposal facilities to serve their existing and projected populations; and WHEREAS, the parties have determined that the most practical, economical and efficient method•of providing sewage treatment and disposal facilities for the service areas described herein is to plan and provide for such facilities on a joint, regional; and WHEREAS, the parties hereto intend to join together in this Agreement for the joint exercise of common powers pursuant to Chapter 163, Part I, Florida Statutes (179) (the Florida Interlocal Cooperation Act of 1969); NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, it is agreed by the parties as follows: LKL-08/11/89-300D -1- • • ARTICLE I DEFINITIONS As used herein, the following terms shall have the following meanings unless the context clearly requires otherwise. All terms which denote the singular number shall include the plural number and vice-versa, and all terms which denote persons shall include natural persons, firms, associations, corporations and public bodies. "Atlantic Beach" shall mean the City of Atlantic Beach, Florida, a municipal corporation. "Capital Charges" shall mean the capital charges based upon debt service on the Sewer Revenue Bonds to be issued by Jacksonville Beach and allocated as provided for in Sections 7.04 and 10.04 hereof. "Collection Systems" shall mean the sewer systems within the service area of each Municipality (whether owned by the Municipality or a private company) which discharge Sewage into the Regional System, consisting of collection sewers, internal local pumping stations, and other sewer facilities used in the collection and treatment of Sewage or the transmission thereof to the Regional System at the Connection Points all as described in Exhibit A attached hereto. "Connection Points" shall mean the several locations at which the effluent pumping facilities are to be connected to the Regional System. "Consulting Engineer" shall mean, in respect of any Municipality, an engineer or engineering firm having experience and of favorable repute in the field of sanitary engineering and hired by the Municipality with whom the engineer consults. "Construction Plan" shall mean the time schedule required to construct the Project as provided for in Exhibit C. LKL-08/13/84-300D -2- "DER" shall mean the Department of Environmental Regulation of the State of Florida or its successor; "Domestic Sewage" shall mean the normal water-carried household and toilet waste from residences, commercial establishments, institutions, industries, and other users of the Regional System. "Duval County" shall mean Duval County, Florida, a political subdivision of the State. "EPA" shall mean the United States Environmental Protection Agency or its successor. "Facilities Plan" shall mean the plan approved by the Parties and developed in accordance with the Federal Act and the Regulations. "Federal Act" shall mean the Federal Water Pollution Control Act as amended and contained in the Clean Water Act of 1977 (Pub.L. 95-217), as amended from time to time. "Final Net Project Cost Estimates" shall mean the costs referred to in Section 6.01 hereof. "Fiscal Year" shall mean the twelve-month period beginning on October 1 and ending the following September 30, or such other period as may at the time be prescribed by law. • "Industrial Waste" shall mean any water carried solid, liquid, or gaseous substance - any form of energy ejected, escaping, or discharged in the course of any industrial, manufacturing, trade, or business process or in the course of the development, recovery, or processing of natural resources, as distinct from Domestic Sewage. "Jacksonville Beach" shall mean the City of Jacksonville Beach, Florida, a municipal corporation. LKL-08/13/84-300D -3- "Metering Station" shall mean a facility for the accurate measurement of the volume of Sewage flow from the Municipalities' effluent pumping facilities. In accordance with sound engineering principles, Metering Stations will be located at the Party's effluent pumping facility. "Municipalities" shall mean Atlantic Beach and/or Jacksonville Beach. "Neptune Beach" shall mean the City of Neptune Beach, Florida, a municipal corporation. "Net Project Cost" shall mean Project Costs less grants. "Operating Expenses" shall mean the total, for the fiscal period in question, of the costs and expenses of operating the Regional System, necessarily incurred in connection with the operations, administration and maintenance of such facilities and properly chargeable thereto under generally accepted accounting principles applied on a consistent basis. Without limiting the generality of the foregoing such costs and expenses shall include: salaries and wages of operating and supervisory personnel, chemicals, power, taxes, insurance premiums, supplies, and fees and expenses for engineering, legal and accounting services. "Party" or "Parties" shall mean Atlantic Beach, Jacksonville Beach, and Neptune Beach. "Project" shall mean the planning, design, financing, and construction of the Regional System in accordance with plans and specifications prepared by the Engineers, and the acquisition of necessary lands, rights-of-way, easements, or other entitlements. LKL-08/13/84-300D -4 "Project Costs"shall mean, in addition to the items set forth in the plans and specifications prepared by the Engineers: the cost of acquisition of any lands or interest therein or any other properties deemed necessary or convenient for the Project; engineering, legal, accounting, financial, and printing expense; expenses for estimates of costs and of revenues; expenses for plans, specifications and surveys; fees or fiscal agents, financial advisors or consultants; administrative expenses relating solely to the construction and acquisition of the Project; reimbursement to the Parties for any sums heretofore expended for the foregoing purposes; extraordinary repairs, and renewal or replacement; and financing expenses in connection with any temporary financing for the Project issued in anticipation of receipt of grant payments or Sewer Revenue Bond proceeds; and such other costs and expenses as may be necessary or incidental to the planning, designing, constructing, equipping, and financing of the Project. "Project Report" shall mean the report referred to in Section 4.02 hereof. "Regional Costs" shall mean the costs incurred for the post-step I planning, design and financing of the Regional System including, but not limited to: the cost of acquisition of any lands or interest therein or any other properties deemed necessary or convenient therefor; engineering, legal, accounting, financial, and printing expenses; expenses for estimates of costs and of revenues; expenses for plans, specifications and surveys; fees of fiscal agents, financial advisors or consultants; administrative expenses relating solely to the construction and acquisition thereof; reimbursement for any sums heretofore expended for the foregoing purposes; and such other costs and expenses as may be necessary or incidental to the planning, designing, constructing, equipping, and financing of such post-Step I undertakings. "Regional System" shall mean the effluent outfall and disposal facilities, together with all lands, rights-of-way, easements, and other entitlements necessary for LKL-08/13/84-300D -5 the construction or use thereof, including, without limiting the generality of the foregoing: all pipes, valves, meters, and other machinery and equipment appurtenant or incidental thereto or necessary therefor, and all other facilities necessary or desirable for the efficient and economical transmission, and disposal of effluent emanating from the Service Area and flowing into the Outfall, all as described in Exhibit A. "Regulations" shall mean all applicable federal and State laws and regulations promulgated from time to time. "Service Area" shall mean that area in Duval County, Florida, bounded on the east by the Atlantic Ocean, on the west by Intracoastal Waterway, on the north by the St. John's River, and on the south by the boundary line between Duval County, Florida, and St. John's County, Florida, as shown on Exhibit B attached hereto. "Sewage" shall mean Domestic Sewage and Industrial Waste. "State" shall mean the State of Florida. LKL-08/11/84-300D -6- ARTICLE II GENERAL AGREEMENT Section 2.01 Scope and Purpose of Agreement. It is the purpose and intent of this Agreement to provide an efficient, environmentally sound means of planning, designing, constructing, and operating the Regional System for the benefit of the residents of the Service Area on a regional basis and to provide a framework for the financing of the Regional System and the apportioning of costs associated with its planning, construction and operation. Section 2.02 Authorizations. Each Party represents and warrants that it has duly authorized the execution and delivery of this Agreement by all necessary legal action and agrees to take all further action reasonably required of it hereunder in a timely manner to the end that the design, construction, financing and operation of the Regional System may be accomplished expeditiously. a • LKL-08/11/84-300D -7- ARTICLE HI REGIONAL SYSTEM PLAN Section 3.01 Cooperation. The Parties, jointly and separately, agree to take every reasonable step to assist each other in obtaining from federal, state and other agencies such grant monies as may from time to time be available for the planning, design, construction, and operation of the Regional System. Each Party agrees to cooperate with the others in applying for such grants. LKL-08/11/84-300D -8- ARTICLE IV REGIONAL SYSTEM DESIGN Section 4.01 Plans and Specifications. The Municipalities and their Engineers shall complete plans and specifications for the Regional System in accordance with Exhibit D attached hereto and made a part hereof. Design efforts shall be accomplished with reasonable dispatch, all in accordance with sound engineering practices and with relevant requirements of all agencies having jurisdiction in the matter. Section 4.02 Project Report. Upon completion of design and any ancillary steps thereto required to be taken by each of the Parties, but prior to advertising for bids for construction of the Regional System, the Municipalities shall, with the aid of their Engineers, prepare and submit to all the Parties the Project Report on the Regional System setting forth: (a) The scope of the Project as contained in the final plans p ns and specifications; and (b) The estimated Project Costs and the estimated amount of grants and other monies, if any, reimburseable therefor. Section 4.03 Municipality Project Report Approvals. Each Party agrees that it will consider the Project Report in good faith and within 60 days of its receipt, notify the Municipalities whether it approves or disapproves the Project Report. If any Party intends to disapprove the Project Report, it shall notify the - Municipalities, and the Municipalities and their Engineers shall consider suggested modifications or initiate such modifications, acceptable to State and federal authorities and the Municipalities, as will make the Project feasible. When all the Parties shall have approved the Project Report, the financing, construction and operation of the Project shall proceed as hereinafter set forth. LKL-08/13/84-300D Such approvals (or disapprovals) shall be given not later than sixty (60) days after receipt of the Project Report; otherwise the Project Report shall be deemed approved by the Parties. Section 4.04 Approval of Net Estimated Costs. Approval of the Project Report shall be deemed approval of the estimated Net Project Costs. Section 4.05 Financing Obligations. If all the Parties shall not approve the Project Report, or if, for any other reason, the Project shall not be constructed, Regional Costs incurred by the Municipalities, including those temporarily financed by the issuance of bond anticipation notes, to the extent not reimbursed or payable from grant moneys, shall be paid by the Municipalities in the following proportions: 1. Atlantic Beach 2. Jacksonville Beach - aup 4.s,0 3. Neptune Beach /5-20 The method of funding the respective shares of such payment shall be determined by the Parties individually, but in any event, each Party agrees that it will provide funds in a timely fashion to pay its share thereof. • LKL-08/13/84-300D -10- • ARTICLE V CONSTRUCTION OF REGIONAL SYSTEM Section 5.01 Regional System. The Regional System shall be constructed by the Municipalities in accordance with the Construction Plan. Section 5.02 Regional System Sites. In accordance with the Construction Plan the Municipalities shall take such steps as may be required to acquire: (a) the easements, rights-of-way, or other entitlements required to construct the regional effluent disposal system; and (b) easements, rights-of-way or other entitlements required to permit construction and operation of force mains, interceptors, and each and every other required facility of the Regional System located within Duval County. Section 5.03 Construction. Subject to the provisions of Article VI, the Municipalities shall, in accordance with the Construction Plan, undertake the construction of the Regional System in accordance with the plans and specifications, the construction contracts, and all legal requirements, to be completed and placed in operation for the benefit of the Municipalities as expeditiously as possible. Each Party hereby grants to the Municipalities, their contractors, subcontractors, agents, and other representatives, and their successors and assigns, all easements, rights-of-way and other rights necessary and desirable in, along, over and under streets, roads, lanes, courts, public squares, alleys, and highways within its corporate area, in, along, over, or under which the Regional System or any part thereof will be constructed, together with free ingress, egress, and regress therein and thereto, for the purpose of constructing, replacing, repairing, altering, maintaining, and operating the Regional System. The Municipalities shall repair or restore or cause their contractors to repair or restore such streets, roads, lanes, courts, public cauares, alleys, and highways in accordance with the standards of the Parties and LKL-08/11/84-300D -11- the Florida Department of Transportation with respect to repair or restoration of comparably constructed State highways, and shall repair or restore other areas within the Regional System to as close to their original condition as possible. Section 5.04 General Right of Inspection. Each Party agrees that as to any facilities constructed by each of them under this Agreement, the other Parties and their agents or representatives, at their sole expense, shall be permitted at all reasonable times and from time to time during construction and thereafter, to inspect, examine and make tests regarding all aspects, including all records of construction, operation and maintenance, of such facilities. LKL-08/11/84-300D -12- 1 • f ARTICLE VI PLAN OF PERMANENT FINANCING Section 6.01 Advertisement for Construction Bids; Final Net Project Cost Estimates. Upon approval by the Parties of the Project Report and the final plans and specifications, after receipt of the Step grant offer, and in compliance with the Regulations, the Municipalities shall advertise for construction bids. The Municipalities shall receive the construction bids at the appointed time. Representatives from the Parties shall be invited to attend. Upon receipt of acceptable construction bids for the Regional System the Municipalities shall determine the Final Net Project Cost Estimates based upon a determination of the lowest responsible bidder for each of the contracts to be let in accordance with the Regulations. If such amount does not exceed the estimate approved by the Municipalities in the Project Report by more than 10%, no further approval of the Parties shall be required and the Municipalities shall be entitled to proceed, award of construction contracts, construction and operation of the Regional System, all in accordance with this Agreement, provided_ that the Municipalities shall not have determined unanimously to discontinue and terminate the Project. In the event that the Final Net Project Cost Estimates to be financed exceed by more than 10% the estimates contained in the Project Report, the Municipalities, before proceeding with the Project, shall first have obtained approvals from each Party. If such approval shall not have been received from any Party in writing within thirty (30) days from the date of the Final Net Project Cost Estimates, such Party's disapproval thereof shall be assumed. LK L-08/11/84-300 D -13- Section 6.02 Capital Cost Allocations. The initial capital cost allocations to the three parties to the Agreement will be based upon the initial reserved capacity allocations. The capital costs to be prorated will consist of: (a) Construction cost based upon the bid amounts. (b) Planning costs (engineering, financial, and technical). (c) Right-of-way and easements costs. Any deviation of estimated costs from actual costs will be prorated appropriately and reimbursements or additional payments will be executed in a timely manner. The line segments distinguished by usage are as follows: Individually Used Segments. Segment # (i). Jacksonville Beach to Neptune Beach tie-in. Segment # (ii). Neptune Beach to Atlantic Beach tie-in. Segment # (iii). Atlantic Beach to Atlantic Beach tie-in. Shared Segments. Segment # (iv). Neptune Beach tie-in to Atlantic Beach tie-in. Segment # (v). Atlantic Beach tie-in to the point of St. Johns River discharge. - (i) Individually Used Segments. Each party will be solely responsible for the design, construction, and costs for their individually used segments (i.e., the segments from their effluent pumping stations to the points of tie-in with shared segments of the line). (ii) Shared Segments. • Segment #(iv) - Neptune Beach Tie-in to Jacksonville Beach Tie-in. The City of Jacksonville Beach will be responsible for the timely design, construction, and placing in service of the portion of the System consisting of the LKL-08/11/84-300D -14- , transmission line from the point of tie-in by the City of Neptune Beach to the point of tie-in with that portion of the System shared by the three parties. The Cities of Jacksonville Beach and Neptune Beach will be responsible for their pro rata shares of capital costs based upon the initial capacity allocations as specified below. Each party will establish an appropriately and fully funded escrow account in the amount of its pro rata local share of capital costs prior to the letting of bids. During construction, Jacksonville Beach will draw down these escrow accounts based upon the pro rata capital percentages specified below, contractor's invoices, other legitimate capital costs as specified herein, and reflecting State funding participation, if applicable. The City of Neptune Beach will have the right to review and accept design drawings, specifications, and change orders in excess of 5% of the total capital cost for this portion of the System. The pro rata capital shares will be determined as the following percentages of the capital cost of this portion of the System: `h �(i- 6 - -) City of Jacksonville Beach - (4,68: ,626) times 100 = 83.33% 1(S /6 - 25-7o City of Neptune Beach - (938/5,626) times 100 = 16.67% In the event of State participation in the funding of this portion of the System, the two parties will cooperate in a timely manner in the development and submission of all appropriate documentation required to receive proper reimbursements from the State. Segment 4 (v) - Atlantic Beach Tie-in to St. Johns River Discharge. The City of Atlantic Beach will be responsible for the timely design, construction, and placing in service of the portion of the System consisting of the transmission line from the City of Atlantic Beach point of tie-in to the point of St. Johns River discharge. Each of the three parties will be responsible for its pro rata share of capital costs based upon the initial capacity reservations and as specified below. The pro rata local share of capital costs of the City of Atlantic Beach will be funded by a State `Y . LKL-08/11/84-300D .� -15- F'' • Bond Loan. The Cities of Jacksonville Beach and Neptune Beach will establish appropriately and fully funded escrow accounts in the amount of their pro rata local shares of capital costs prior to the letting of bids. During construction, the City of Atlantic Beach will proportionately draw down these accounts and the State Bond Loan principal based upon the pro rata capital percentages as specified below, Contractor's invoices, other legitimate capital costs as specified herein, and appropriately reflecting State funding participation. The Cities of Jacksonville Beach and Neptune Beach will have the right to review and accept design drawings, specifications, and change orders in excess of 5% of the total capital cost for this portion of the System. The pro rata capital shares will be determined as the following percentages of the capital cost of this portion of the System: 4,pwl9 City of Atlantic Beach - (2,778/8,404) times 100 = 33.06% 91°"" , G 55 trio, City of Jacksonville Beach - (4,688/8404) times 100 = 55.78% 9P.n . 1 .35'z 1.164, City of Neptune Beach - (938/18,404) times 100 = 11.16% In the event of State participation in the funding of this portion of the System, the three parties will cooperate as appropriate, and in a timely manner in the development and submission of all appropriate documentation required to receive proper reimbursements from the State. (iii) Future Changes in Reserved Capacity Allocations. The capital cost adjustments associated with any changes in initial capacity reservation, or subsequent increases thereof will be as follows: (a) Sale of a Portion of Capacity Reservation. The capital cost and terms thereof for any sale of initial reserved capacity, or a subsequent increase thereof, in a shared portion of the System among the parties to the Agreement will be by negotiation of the parties involved in the transaction .A".•• LKL-08/11/84-300D A -16- „ '` and with the approval of any remaining party. Such sale will be implemented by amendment to the Agreement. Such sale of reserved capacity does not alter the then existing total cumulative reserved capacity. (b) Increase of the Cumulative Capacity Reservation. Any increase in the cumulative initial capacity reservation, or a subsequent increase thereof, will cause a re-allocation of capacity reservations to the affected parties to the Agreement. Such re-allocation of capacity reservations gives to corresponding capital and operating cost impacts. Said capital and operating cost impacts will be based upon an evaluation as in,2(b), (ii) above by the Consulting Engineer with said evaluation being approved by all affected parties to the Agreement. The party, or parties, whose percentage(s) of the increased cumulative reserved capacity is larger than his percentage of the then existing cumulative reserved capacity will pay a capital and operating cost compensation to the party, or parties, whose percentage of increased cumulative reserved capacity decreases; the amount of compensation will be based upon the above referenced evaluation by the Consulting Engineer. Such increase and re- allocation of reserved capacities will be implemented by amendment to the Agreement. (c) Additional Tie-ins. - The capital cost and possible operating cost adjustments associated with any additional tie-in to any portions of the System will be by negotiation and based upon an evaluation as in 2(b), (ii) above by the Consulting Engineer with said evaluation being approved by all affected parties to the Agreement. LKL-08/11/84-300D -17- r . • ARTICLE VII • OPERATION OF REGIONAL, SYSTEM Section 7.01 Acceptance of Wastewater PartiesTreatmentgree that theyEffluent Plant_ The covenant and a will: (a) Accept treated sewage emanating from the Service discharged into the Regional System in Area which is and conditions set accordance with the limitations and other forth in this Agreement; terms (b) Maintain the Regional System or cause it to be maintained in good repair, order and working condition; (c) Continuously operate the Regional System or cause it to be operated an economical and efficient manner in accordance with soft Agreement, subject to temporary interruptions or curtailments of operations P er nditior ereasons this beyond the control of the Parties and subjectations for re govern to orders of mental agencies re u' DER, 9 iring to the PartiesEPA, or other discontinue operation of the outfall facilities; (d) From time to time, make all necessary and ordinary fepairs, renewals, System and undertake all improvements Y, the costs of allnecessary to maintain adequate service thereby, of which shall be O but this subparagraph shall not Operating E xpenses Regional S authorize expansion of the capacity pacit y of the Section 7.02 Capacity Allocations. (a) Maximum Initial Reserved Capacity. The three parties to the Agreement will be allocated as follows: maximum initial capacity reservations LKL-08/11/84-300D -18- • ( ` 20 fa • City of Atlantic Beach 2,778 GPM IT 4,vv/n60 2.0 MCr-0 (Now) 3123 ¢ City of Jacksonville Beach 4, PM = 6 A96D 415 t'ru O (IUOW) Zero i•f City of Neptune Beach b-,sg--.G.P44_,,r. 7.4-A160 o.9 M& D 8,404 GPM /Q /160 Section 7.03 Future Change in Capacity Allocations. (i) Sale of a Portion of Capacity Reservation. Each party will have the right at any time to sell a portion of its then existing reserved capacity to one of the other two parties with the concurrence of the third party, or to a combination of the other two parties. Such re-allocation of reserved capacity will not cause an increase in the total cumulative capacity reservations then existing. Such a change of capacity reservations will be implemented by amendment to the Agreement. (ii) Increase of Cumulative Capacity Reservation. Any increase in the cumulative initial capacity reservation of 8,404 GPM, or any subsequent increase thereof, will be based upon an engineering report by a Consulting Engineer evaluating the impact of the increase upon each of the three parties. Such impact will be based upon the adjusted allocation of the then existing capacity reservations in terms of pumping rates in gallons per minute and the corresponding " financial adjustments as specified in 3.) and 4.) herein. Such report will be commissioned and funded by the party, or parties, seeking to increase reserved capacity over the then existing reservation(s) and will be subject to review and formal approval by the remaining party or parties. Moreover, any increase in the cumulative initial capacity reservation, or subsequent cumulative capacity increases, will be made by amendment to the Agreement. LKL-08/11/84-300D -19- °. r_. : t1 (iii) Additional Tie-ins. Any additional tie-ins to any of the five segments (see Section 6.02) of the System will be subject to negotiation and written agreement by the three parties based upon an analysis by a Consulting Engineer of the financial and operational impact of such tie-in upon the three parties to this Agreement. Section 7.04 Permit Compliance. The Parties agree to comply with Chapter 17-6 FAC and DER and NPDES Permits. LKL-08/13/84-300D -20- ARTICLE VIII METERS AND CONNECTION POINTS Section 8.01 Meters. A recording flow meter and recording pressure gauge of types approved by all parties will be provided at each effluent pumping station. Each party will be responsible for the installation, funding, maintenance, and continuous service of the meter at its effluent pumping station. Each party agrees to share operating records as appropriate. Section 8.02 Connection Points. The Parties hereby approve the location of the Connection Points as shown on Exhibit C attached hereto. The cost of repairing, maintaining and replacing the meters and other measuring devices and related facilities initially installed as part of the Project shall be an Operating Expense of each Party. Section 8.03 Meter Readings. Each Party shall maintain complete and accurate records of all Regional System meter readings and make the same available to the other Parties upon request. Each Party shall furnish the other Parties quarterly reports of flow and pressure. Section 8.04 Missing Records. In the case of missing records due to faulty meter registration or otherwise, the Consulting Engineer for the Party shall estimate the volume of Sewage discharged for all purposes of this Agreement. Such estimates shall be based on an evaluation of past flow records as applied to present conditions. A copy of such estimated, together with calculations and past flow records upon which the same are based, shall be made available to each Party affected thereby. LKL-08/13/84-300D -21- Section 8.05 Meter Calibration. All meters measuring in Sewage flow into the Regional System or the pressure of the Regional System, either directly or indirectly, shall be calibrated no lessf System meters shall be an than semi-annually. The cost of calibration of the Regional Operating Expense of Party owning the meter. • -22- LKL-08/11/84-300D ARTICLE IX MAINTENANCE AND REPAIR CHARGES Section 9.01 Maintenance and Emergency Repair Contract. Maintenance and emergency repair contracts will be developed and executed with an appropriate contractor on a competitive bid basis. Section 9.02 Maintenance Contract. A maintenance contract will be developed along the following general lines and let for bids: (a) The provisions of the contract will be developed and approved by the Parties. (b) Atlantic Beach will advertise for and receive bids and award such with the concurrence of the Parties. (c) The maintenance contract will distinguish costs associated with the five segments of the line: Individually Used Segments. Segment # (1). Jacksonville Beach to Neptune Beach tie-in. Segment # (ii). Neptune Beach to Neptune Beach tie-in. Segment I (iii). Atlantic Beach to Atlantic Beach tie-in. Shared Segments. Segment I (iv). Neptune Beach tie-in to Atlantic Beach tie-in. Segment # (v). Atlantic Beach tie-in to the point of St. Johns River discharge. Maintenance contract costs corresponding to the individually used segments will be funded entirely by such users. Costs of Segment #(iv) will be prorated between the Cities of Jacksonville Beach and Neptune Beach based upon the applicable reserved capacity allocations. In the Event of a Change in reserved capacity allocation, the LKL-08/13/84-300D -23- appropriate proration of maintenance contract costs will be made based upon the relative time of operationof the System under the different reserved capacity allocations. (d) The contract will provide for the City of Jacksonville Beach to be billed by the contractor for costs associated with Segment n(iv); the City of Neptune Beach will be subsequently billed its pro rata share by the City of Jacksonville Beach. Similarly, the City of Atlantic Beach will be billed by the contractor for services associated with Segment #(v); the Cities of Jacksonville Beach and Neptune Beach will be subsequently billed their pro rata shares by the City of Atlantic Beach. (e) Each Party agrees to pay its pro rata share of the maintenance contract costs in a timely manner. Section 9.03 Annual Inspection. Specificatons for an annual inspection and report will be established. Such report, after approval by the three parties to the Agreement, will be the basis for the implementation of any necessary non-emergency maintenance requirements. The three parties to the Agreement agree to implement the recommendations of the approved report in a timely manner with costs apportioned as in 9.02 above or as per the cause of the need for repair. Such annual inspection will be performed by the contractor as a part of the responsibility of the maintenance contract of 9.02 above. Section 9.04 Emergency Repair Contract. An emergency repair contract will be developed by the three parties to the Agreement as a part of the maintenance contract. Such contract shall provide as follows: (a) Timely repair of any failure with response time specified. (b) Notification of any emergency repair requirement will be as follows: LKL-08/13/84-300D -24- Individually Used Segments. Segment #(i) - Jacksonville Beach. Segment #(ii) - Neptune Beach. Segment #(iii) - Atlantic Beach. Shared Segments. Segment #(iv) - Neptune Beach. Segment #(v) - Atlantic Beach. (c) Billing and cost responsibilities for emergency services will be as per the notification specification above with proration by the billed party based upon reserved capacity allocations as in 9.02 above or as per the cause of the need for repair. Emergency repair costs will be paid by the responsible party or parties in a timely • manner. (d) Specifications for maintenance of an adequate inventory of materials will be established. LKL-08/11/84-300D -25- ARTICLE X COLLECTION AND TREATMENT SYSTEMS Section 10.01 Collection and Treatment Systems Operation; Liability. Each Party may own, operate, maintain, and expand its own respective Collection and Treatment System, shall impose all rates, fees, and charges on users of its Collection and Treatment System, shall do all of its own billing and collection, pay all costs of operating, maintaining, and repairing its Collection and Treatment System, and shall individually and continuously operate its Collection and Treatment System and keep the same in proper repair and operating condition. Each Party owning or operating a Collection and Treatment System shall make all necessary renewals, replacements, and improvements thereto in order to maintain adequate service and shall comply with all present and future laws, rules, regulations, permits, orders, and requirements applicable thereto and lawfully made by DER, EPA, or other governmental body having jurisdiction thereof. Section 10.02 Connections. Each Party agrees that no person, firm, corporation, or Party shall install or make connections to its Collection and Treatment Systems which shall in any manner be connected with the Regional System without first obtaining a permit to do so from the Party having jurisdiction thereof. Section 10.03 Municipality Ordinances; Resolutions. Each Party shall adopt and enforce ordinances or resolutions, and keep the same in effect, requiring the issuance of sewer permits and establishing rules and regulations governing the construction and building of sewers, service laterals, connections, and other matters relating to the Collection and Treatment Systems, which shall conform to all require- ments of DER and EPA. LKL-08/13/84-300D -26- Section 10.04 Inflow/Infiltration. Each Party will ensure that its Collection and Treatment Systems, including any additions thereto, discharging directly or indirectly into the Regional System, will not be subject to excessive infiltration inflow. The Parties acknowledge and agree that inflow and infiltration studies of the existing Collection and Treatment Systems and corrective action with respect thereto may be required from time to time during the term hereof in order to protect the Regional System from excessive flows of surface or ground water. All Parties will cooperate in carrying out such tests, studies, inspections and other work as may be required in connection with such inflows or infiltration. Any Party required to correct infiltration problems in its Collection System shall pay the net cost thereof, after deducting any available federal or State aid, and shall complete the work in a timely manner. Section 10.05 No Direct Connections. Privately owned systems may not be connected directly to the Regional System. All such connections must be made indirectly through public sewers of the Collection Systems which are no Iess than eight (8) inches in diameter, are covered by a permit issued by DER, and are owned and maintained by one of the Parties. LKL-08/13/84-300D -27- ARTICLE XI MISCELLANEOUS PROVISIONS Section 11.01. Insurance. Each of the Parties shall maintain general liability insurance covering the construction and operation of their respective sewer facilities (Collection Systems and Treatment System) which shall be written in such amounts, have such named insured, cover such risks and contain such other terms as shall be recommended by their respective consulting Engineers or an independent insurance consultant satisfactory to the Parties and in accordance with any applicable indentures or leases. Each of the Parties shall also maintain fire and extended coverage insurance against loss or damage to the physical structures and other sewer facilities normally included in such policies, in such amounts as shall be recommended by their respective Consulting Engineers or such independent insurance consultant. Section 11.02 Fines. If any fines or other monetary penalties are imposed upon the Parties based upon their ownership and operation of the Regional System as a result of a violation of this Agreement by any other Party, including the Parties as operator of their Collection Systems, such other Party shall indemnify and reimburse the Municipalities for the amount thereof and any costs, including reasonable attorneys' fees, related thereto, provided that Jacksonville Beach shall have notified such other Party immediately upon learning of any investigation or proceeding which might result in such fines or penalties and allowed such other Party to join in the defense thereof at its cost and expense. In addition, any fines or other monetary penalties imposed upon the Parties in their operation of the Regional System not as a result of any violation of the Agreement by any Party shall be deemed an Operating Expense of the Regional System payable as an or";+:,,, n Ct'"I,ice Charge in accordance with each Party's proportionate share of such Service Charges. LKL-08/11/84-300D -28 • Section 11.03. Force Majeure. The performance by the Parties of this Agreement is subject to Force Majeure and is contingent upon strikes, accidents, acts of God, flood, regulations or restrictions imposed by any government agency, breakdowns of the Regional System, or other delays beyond the Parties' control, provided, however that nothing in this Section shall be deemed or construed to supercede or suspend payment obligations hereunder. • Section 11.04. Severability. Should any provision hereof for any reason be held illegal or invalid, no other provision of this Agreement shall be affected; and this Agreement shall then be construed and enforced as if such illegal or invalid provision had not been contained herein. Section 11.05. Headings. The headings in this Agreement are solely for convenience and shall have no effect on the Iegal interpretation of any provision hereof. Section 11.06. Waiver. The failure of any Party to insist upon strict performance of this Agreement or of any of the terms or conditions hereof shall not be construed as a waiver of any of its rights hereunder. Section 11.07. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be regarded for all purposes as an original, but such counterparts shall together constitute but one and the same instrument. Section 11.08. Notice. Each notice when required hereunder shall be deemed to have been given when mailed by U.S. Postal Service certified mail, postage prepaid; addressed as follows: 8`G0 S6mmalt �d (a) If to Atlantic Beach, , Atlantic Beach, Florida 32233. (b) If to Jacksonville Beach, 11 North 3rd Street, Jacksonville Beach, Florida 32250-1389. (c) If to Neptune Beach, 116 First Street, Neptune Beach, Florida 32233. LKL-08/11/84-300D -29- Section 11.9. Attachments, Appendices, Exhibits and Schedules. All exhibits, attachments, appendices and schedules which may, from time to time, be referred to in any duly executed amendment hereto are (and with respect to future amendments, shall be) by such reference incorporated herein and shall be deemed a part of this Agreement as fully as if set forth herein. The Exhibits attached hereto to the extent not completed at the time of execution hereof, shall conform substantially to the description thereof contained on each Exhibit page and may be supplied by the Parties. Section 11.10. Rights and Obligations Not Transferable. Except as provided in this Agreement, the rights and obligations of the Parties hereunder are not assignable and may not be transferred without the prior written consent of all the other Parties hereto, which will not be unreasonably withheld. Section 11.11. Effective Date of Agreement. This Agreement shall become effective after the enactment of appropriate enabling ordinances by the Parties authorizing its execution by appropriate officials of said Parties after due execution hereof by all the Parties, and after filing of an original of said Agreement with the Clerk of the Circuit Court for Duval County. Section 11.12. Term. The term of this Agreement shall be from the effective date referred to above and continuing for a period not less than the useful life Of the Regional System and any additions, alterations or modifications thereto. Section 11.13. Amendments. The Parties agree to negotiate in good faith such amendments to this Agreement or additional agreements as may be necessary to provide for capital improvements to the Regional System required to maintain adequate service. Any such amendments shall be made in accordance with the provisions of C:anter 163, Part I. Florida Statutes, and of this Agreement. :34-300p -30- Section 11.19. Governing Law. This Agreement shall be governed in all respects by the laws of the State of Florida. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed under their respective seals by their officers thereunto duly authorized as of the date first above written. ATLANTIC BEACH Attest: //:,7.4 '= • f ' . /.. City Clerk ' ' Mayor ��• By: ,(13- 11. ) !/r. City Manager / LIa-0S/13/84-300D -31- • • JACKSONVILLE BEACH / Attest: / (2iLG! By: /%• ! / / City Clerk G ) / Mayor' By: - City Manager NEPTUNE BEACH Attest: II:, E. ,�..�� .Y. �Lc. C,�...7 ,t i By City Clerk Mayor APPROVED AS TO FORM AND CORRECTNESS: r i *City Attorney of Atlantic Beach lc • CitAttor•riey of Neptune Beach City Attorney of Jacksonville Beach LN L-OS/13154-300D -32- MASTER EXHIBIT Exhibit A is the master Exhibit consiting of maps locating the facilities of the Regional System in sufficient detail to properly account for transmission lines to the outfall site. This Exhibit shall be consistent with the Facilities Plan and this Agreement. EXHIBIT A LKL-08/13/84-300D -33- SERVICE AREA EXHIBIT Exhibit B is a delineation of the Service Area as finally defined in the Facilities Plan with indications of any flows within the Service Area which will not be treated by the Regional System. Conversely, it will show if any flows outside the Service Area are to be included. This Exhibit shall be consistent with the Facilities Plan and this Agreement. • EXHIBIT B CONSTRUCTION PLAN Exhibit C is the time schedule for the construction of all aspects of the Regional System. The time schedule may be accompanied by maps indicating the various stages of construction. This Exhibit shall be consistent with this Agreement. • EXHIBIT C • DESIGN SCHEDULE Exhibit D consists of a design schedule for the Project. This Exhibit will also provide a bidding schedule and detail the Federal and State approvals required. This Exhibit shall be consistent with the Facilities Plan and this Agreement. • EXHIBIT D REGIONAL SYSTEM CAPACITIES Exhibit E allocates capacities between Atlantic Beach, Jacksonville Beach and Neptune Beach, respectively. • EXHIBIT E .ID n 7 J INTERLOCAL AGREEMENT CREATING THE DUVAL BEACHES REGIONAL SEWER UTILITY THIS INTERLOCAL AGREEMENT, made this (CI idny ofAfy j `!C74 1989, by and between the CITY OF ATLANTIC BEACH, THE CITY OF JACKSONVILLE BEACH, AND THE CITY OF NEPTUNE BEACH, all of the State of Florida; WITNESSETH : WHEREAS, the parties hereto share a common need for additonal sewage treatment and disposal facilities to serve their existing and projected populations; and WHEREAS, the parties have determined that the most practical, economical and efficient method of providing sewage treatment and disposal facilities for the service areas described herein is to plan and provide for such facilities on a joint, regional; and WHEREAS, the parties hereto intend to join together in this Agreement for the joint exercise of common powers pursuant to Chapter 163, Part I, Florida Statutes (179) (the Florida Interlocal Cooperation Act of 1969); NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, it is agreed by the parties as follows: • illfre LKL-08/11/89-300D -1- x z t? ARTICLE IX MAINTENANCE AND REPAIR CHARGES Section 9.01 Maintenance and Emergency Repair Contract. Maintenance and emergency repair contracts will be developed and executed with an appropriate contractor on a competitive bid basis. Section 9.02 Maintenance Contract. A maintenance contract will be developed along the following general lines and let for bids: (a) The provisions of the contract will be developed and approved by the Parties. (b) Atlantic Beach will advertise for and receive bids and award such with the concurrence of the Parties. (c) The maintenance contract will distinguish costs associated with the five segments of the line: Individually Used Segments. Segment # (i). Jacksonville Beach to Neptune Beach tie-in. Segment I (ii). Neptune Beach to Neptune Beach tie-in. Segment # (iii). Atlantic Beach to Atlantic Beach tie-in. Shared Segments. Segment (iv). Neptune Beach tie-in to Atlantic Beach tie-in. Segment I (v). Atlantic Beach tie-in to the point of St. Johns River discharge. Maintenance contract costs corresponding to the individually used segments will be funded entirely by such users. Costs of Segment #(iv) will be prorated between the Cities of Jacksonville Beach and Neptune Beach based upon the applicable reserved capacity allocations. In the Event of a Change in reserved capacity allocation, the LKL-08/13/84-300D -23- • appropriate proration of maintenance contract costs will be made based upon the relative time of operationof the System under the different reserved capacity allocations. • (d) The contract will provide for the City of Jacksonville Beach to be billed by the contractor for costs associated with Segment n(iv); the City of Neptune Beach will be subsequently billed its pro rata share by the City of Jacksonville Beach. Similarly, the City of Atlantic Beach will be billed by the contractor for services associated with Segment n(v); the Cities of Jacksonville Beach and Neptune Beach will be subsequently billed their pro rata shares by the City of Atlantic Beach. (e) Each Party agrees to pay its pro rata share of the maintenance contract costs in a timely manner. Section 9.03 Annual Inspection. Specificatons for an annual inspection and report will be established. Such report, after approval by the three parties to the Agreement, will be the basis for the implementation of any necessary non-emergency maintenance requirements. The three parties to the Agreement agree to implement the recommendations of the approved report in a timely manner with costs apportioned as in 9.02 above or as per the cause of the need for repair. Such annual inspection will be performed by the contractor as a part of the responsibility of the maintenance contract of 9.02 above. Section 9.04 Emergency Repair Contract. An emergency repair contract will be developed by the three parties to the Agreement as a part of the maintenance contract. Such contract shall provide as follows: (a) Timely repair of any failure with response time specified. (b) Notification of any emergency repair requirement will be as follows: LKL-08/13/84-300D -24- Individually Used Segments Segment #(i) - Jacksonville Beach. • Segment #(ii) - Neptune Beach. Segment #(iii) - Atlantic Beach. Shared Segments. Segment #(iv) - Neptune Beach. Segment #(v) - Atlantic Beach. (c) Billing and cost responsibilities for emergency services will be as per the notification specification above with proration by the billed party based upon reserved capacity allocations as in 9.02 above or as per the cause of the need for repair. Emergency repair costs will be paid by the responsible party or parties in a timely • manner. (d) Specifications for maintenance of an adequate inventory of materials will be established. 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Ns' I FOR THE LOCATIO - Memorandum CITY OF ATLANTIC BEACH To: Robert Kosoy, Public Works Director CC: Tim Townsend, Plant Division Director Harry McNally, Collection/Distribution Division Director Jim Jarboe, City Manager Alan Jensen, City Attorney Ron Elder, Asst. Public Works Director,Jacksonville Beach From: James G. Jacques, Assistant to the Public Works Director Date: May 28, 1997 Subject: t/Leak in 24" Effluent Discharge Force Main Located at Florida Boulevard,Neptune Beach City File: FDEP, Duval Beaches Regional Sewer Utility On May 27, 1997, Tim Townsend, Plant Division Director, was asked by Neptune Beach and Jacksonville Beach Public Works Departments to meet at the site of a break in the 24" Effluent Discharge Force Main. The force main apparently broke around April 1, 1997, during construction of the new box culvert being installed by the City of Jacksonville at the Hopkins Creek crossing with Florida Boulevard. During times of pumping, leakage can be seen underwater at Hopkins Creek. The force main at the Hopkins Creek crossing is quite deep,as shown in the attached copies of the old plans. When Tim left the site in the morning, the contractor BGCO,Jacksonville, Neptune Beach and Jacksonville Beach personnel were discussing the timing and funding for the repairs necessary to return the force main to normal service. After discussing the situation with Tim Townsend,Jim Jarboe and Alan Jensen, I called Ron Elder of Jacksonville Beach Public Works Department to learn of the latest information on the situation. I stated that as a member of the Interlocal Agreement for the Duval Beaches Regional Sewer Utility, we were concerned over liability for any potential FDEP fines. Mr. Elder said that a Mr. Brown of the City of Jacksonville Public Works had notified FDEP on April 1, 1997,of the spill of effluent into Hopkins Creek. Supposedly, FDEP said that since the spill was of treated effluent, there would be "no problem". Mr. Elder said he would check this statement and get back with me on May 28, 1997. Since we are concerned about any potential costs to Atlantic Beach, I checked our MEMORANDUM May 28, 1997 Page No. 2 files. The Interlocal Agreement says in Article IX for Maintenance and Repair Charges, that"Maintenance contract costs corresponding to the individually used segments will be funded entirely by such users." The segment of the force main is within Segment#(i), which is solely used by the City of Jacksonville Beach. See the attached portions of the Interlocal Agreement. On May 28, 1997, Keith Cromine of Ron Elder's staff called back to say the only FDEP contact he is aware of was made by Pam Morgan at the Jacksonville Beach WWTP on April 1, 1997,by telephone. He is not aware of any contact by Mr. Brown of Jacksonville to FDEP, but he would check. The Jacksonville Beach Public Works department is planning to write a letter to FDEP to relate the current status of the leak. Mr. Cromine indicated the leak is much larger than before, and they were working with Neptune Beach to prepare the area for work to repair the leak. I asked if there was anything Atlantic Beach could do such as adjusting our discharge times if possible. Mr. Cromine said they would handle the problem, and they would be isolating the break with control valves and try to work around the shutdown at the Jax Beach WWTP. We did assist Neptune Beach on May 27, 1997,by providing materials for Hydro-stop work on the nearby water main to allow excavation at the break site. As we know more, I will keep you and Mr. Jarboe informed.