Loading...
Agenda 04/26/2016 Item #16C 2 4/26/2016 16.C.2. EXECUTIVE SUMMARY Recommendation to approve a Certification of Financial Responsibility, as required by the Florida Department of Environmental Protection, for the renewal of the operating permits for the deep injection well systems at the South County Regional Water Treatment Plant. OBJECTIVE: To certify unconditionally to the Florida Department of Environmental Protection (FDEP) the county's obligation to perform plugging and abandonment of the deep injection well system at the South County Regional Water Treatment Plant (SCRWTP) pursuant to Chapter 62-528 Florida administrative code. CONSIDERATIONS: The SCRWTP provides drinking water to customers throughout the service area. The purpose of the deep injection wells is to dispose of the concentrate flow produced by the reverse osmosis(RO)water treatment process,and the odor control blowdown flow produced by the RO and lime softening processes. The permit,which expires August 8, 2016, is for both existing injection wells, IW-1 and IW-2, located at the SCRWTP. Location Date of permit Date of permit Permit No. issuance Expiration SCRWTP -3851 Utilities Drive, August 9,2011 August 8,2016 173528-005-006 Naples,FL 34117 UO/1I Well Numbers IW-1/IW-2/DZMW-1 The permit renewal application to be submitted requires that the county complete and execute a Certification of Financial Responsibility form(copy attached). This form certifies that the county will be unconditionally obligated to have the financial resources necessary to close,plug, and abandon the Class I injection wells and related monitoring wells. The current plugging and abandonment cost estimate is $518,100. In the event that the injection well system fails to meet permit conditions, or the well is no longer required for its intended use,then plugging and abandonment become necessary. This action is consistent with previous Board of County Commissioners decisions to approve similar requests for the deep injection well system at the SCRWTP, most recently on May 10, 2011, as Agenda Item 16C1. FISCAL IMPACT: The actual expenditure of funds is not anticipated and would only be required if an injection well was to be abandoned. Funds to cover these costs, if needed,are maintained in the Reserves for Contingency line item in the County Water/Sewer Fund(408),which is funded through user fees. LEGAL CONSIDERATIONS: This item is approved as to form and legality, and requires majority vote for Board approval.—SRT GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with executing this document. RECOMMENDATION: That the Board of County Commissioners, Ex-officio the Governing Board of the Collier County Water-Sewer District, approves and authorizes the Chair to execute the Certification of Financial Responsibility form Prepared By: Alicia Abbott,Project Manager,Public Utilities Planning and Project Management Attachments: Attachment 1 Certification of Financial Responsibility form Attachment 2 Cost Estimate Attachment 3 Local Government Guarantee Letter Packet Page -1014- 4/26/2016 16.C.2. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.C.16.C.2. Item Summary: Recommendation to approve a Certification of Financial Responsibility, as required by the Florida Department of Environmental Protection,for the renewal of the operating permits for the deep injection well systems at the South County Regional Water Treatment Plant. Meeting Date: 4/26/2016 Prepared By Name: AbbottAlicia Title: Project Manager,Public Utilities Engineering 4/1/2016 10:36:01 AM Submitted by Title: Project Manager,Public Utilities Engineering Name: AbbottAlicia 4/1/2016 10:36:03 AM Approved By Name: HapkeMargie Title:Recycling Coordinator, Solid&Hazardous Waste Management Date: 4/1/2016 11:37:24 AM Name: Steve Messner Title: Division Director-Water,Water Date: 4/1/2016 12:27:56 PM Name: randy lewis Title: Plant Manager,Water Date: 4/1/2016 12:33:22 PM Name: Oscar Martinez Title:Project Manager,Principal,Public Utilities Engineering Date: 4/1/2016 1:13:06 PM Packet Page-1015- 4/26/2016 16.C.2. Name: ChmelikTom Title: Division Director-Public Utilities Eng,Public Utilities Engineering Date: 4/1/2016 3:14:47 PM Name: Joseph Bellone Title: Division Director-Operations Support,Utilities Finance Operations Date: 4/4/2016 9:26:02 AM Name: YilmazGeorge Title: Department Head-Public Utilities,Public Utilities Department Date: 4/4/2016 2:41:46 PM Name: TeachScott Title: Deputy County Attorney, County Attorney Date: 4/5/2016 8:11:42 AM Name: KlatzkowJeff Title: County Attorney, Date: 4/5/2016 10:14:32 AM Name: FinnEd Title: Management/Budget Analyst, Senior, Office of Management&Budget Date: 4/18/2016 12:29:43 PM Name: CasalanguidaNick Title: Deputy County Manager, County Managers Office Date: 4/18/2016 1:20:31 PM Packet Page -1016- 4/26/2016 16.C.2. CERTIFICATION OF FINANCIAL RESPONSIBILITY FOR LOCAL GOVERNMENT The Collier County Board of Commissioners ,a unit of local government of the State of Florida,hereby certifies that it has unconditionally obligated itself to have the financial resources necessary to close,plug,and abandon its underground injection well(s) and related monitoring wells, as required by Chapter 62-528,Florida Administrative Code. It is further understood that the cost estimate to conduct plugging and abandonment, established on March 28,2016 , shall be updated thirty(30)months after the date of permit issuance and this obligation shall incorporate accumulated inflation costs. An increase exceeding 10 percent compared with the amount stated below shall require submission of an updated certification form. Injection Wells and Monitoring Wells Covered By This Agreement: (attach additional sheet if necessary) South County Regional Water Treatment Plant Facility Name: Facility Address: 3851 Utilities Drive, Naples, FL Facility Contact: Steve Messner Phone Number: (239) 252-6937 Latitude/Longitude of Injection Well(s): 26e Ogg 52��I 4U 5U Current Permit Number: 173528-005-006-U0/11 Current Plugging and Abandonment Cost Estimate: $518,100 (total for all injection and monitoring wells) It is hereby understood that the cancellation of this certification may not take place without the prior written consent of the Secretary of the Florida Department of Environmental Protection. NOTARY: See Next Page (Signature) Attest: DWIGHT E. BROCK BOARD OF COUNTY COMMISSIONERS Court of Courts COLLIER COUNTY, FLORIDA (Print Name) By: By: Deputy Clerk Donna Fiala, Chairman (Title) _ Dated: (Seal) A,•,•ve n legality: (Date) iv Scott Teach Deputy County Attorney 1 Packet Page -1017- 141) 4/26/2016 16.C.2. Notary Form State of Florida County of: Collier Sworn to(or affirmed)and subscribed before me this day of by (Name of person making statement) Personally known to me OR Produced the following identification Notary Signature Print, Type,or Stamp Commissioned Name of Notary Public Apply Seal of Notary Public below-State of Florida 2 0'1° Packet Page 4018- 4/26/2016 16.C.2. Schlumberger Water Services USA Inc. 1567 Hayley Lane,Suite 202 Schlumberger Fort Myers,Florida 33907 Phone:+1 239 481 6494 Water Fax:+1 239 481 6393 Services March 28, 2016 Ms.Alicia Abbott, Senior Project Manager Collier County, Florida Public Utilities Planning and Project Management 3339 Tamiami Trail East,Suite 303 Naples, FL 34112 Re: Collier County Public Utilities Division—South Collier Regional Water Treatment Plant(SCRWTP) Deep Injection Wells—Plug and Abandonment Cost Estimate Dear Ms.Abbott: At your request,Schlumberger Water Services(SWS)has prepared this cost estimate for the plugging and abandonment of the injection wells at the SCRWTP. Collier County owns and operates two Class I deep injection wells at the SCRWTP. The injection well system consists of two deep injection wells(IW-1 and IW- 2)and one dual-zone monitor well(DZMW-1). Each of the three wells would need to be filled with cement to complete the abandonment process. The open hole sections of the injection wells would be filled with gravel prior to grouting the injection well casings. The estimate provided is based on a previous cost estimate for plugging and abandonment of the injection well system prepared during 2011 and review of recent bids for injection well work in South Florida. Please feel free to call me if you have any questions or if you require additional information. Sincerely, William S. Manahan,P.E. Vice President/Operations Manager Schlumberger Water Services WSM/Inl Attachment Packet Page -1019- 4/26/2016 16.C.2. Schlumberger Water Services Plug and Abandonment Cost Estimate Collier SCRWTP Deep Injection Well System Mobilization/Demobilization $ 135,000 Pad retrofits $ 24,500 Mechanical Integrity tests on IW-1 and IW-2 $ 80,000 Suppress artesian flow of wells IW-1 and IW-2 and remove wellheads $ 22,500 Fill open holes of injection wells with gravel to approximately 10 feet below $ 15,000 bottom of 14.48-inch ID fiberglass tubing(estimated 3,615 ft3 @$4.00/ft3) Fill remaining open holes and casings with cement $ 75,000 (estimated 5,347 ft3 @$14.00/ft3) Install cement basket/plug at bottom of 6 5/8"OD DZMW-1 casing and fill $ 30,000 6 5/8"and 16"casings with cement(estimated 1,850 ft3 @$1 4/ft3) Clean up site and dispose of materials $ 50.000 Subtotal for IW-1,IW-2,and DZMW-1 plug and abandonment $ 431,750 Contingency @ 20% $ 86.350 Total Estimated Cost for SCRWTP Injection Well System Abandonment $ 518,100 Packet Page -1020- 4/26/2016 16.C.2. Office of the County Attorney Jeffrey A. Klatzkow Deputy Counts Attorney•Scott R.T each Managing Assistant County Attorney•I leidi F.Ashton Cieko* *Boa a c rnfed Cary,c unr N and r() 1 oosemmert I County Attorney: •Jennifer A.Belpedio Colleen M.Greene Kevin L.Noell Emily R.Pepin Scott A.Stone April 1,2016 Florida Department of Environmental Protection 2600 Blair Stone Road M.S. 3500 Tallahassee,Florida 32399 Re: Local Government Guarantee as required by Rule 62-528.435(9) Florida Administrative Code pertaining to Application to renew South County Regional Water Treatment Plant Deep Injection Well(IW-2) Dear Sir/Madam: This letter is to attest that Collier County is a"Local government entity" as defined in §218.502, Florida Statutes, and as such is subject to Part V of Chapter 218, Florida Statutes. Collier County is a political subdivision of the State of Florida, pursuant to Article VIII, Section 1, Florida Constitution and § 7.11, Florida Statutes. Collier County is a "non-charter" County, pursuant to Article VIII, Section 1 (e), Florida Constitution. If you have any questions,please do not hesitate to call me. Thank you. Sincerely yours, • Scott R. Teach Deputy County Attorney 04-COA-01026/1632 3299 East Tamiami Trail,Suite Soo • Naples Florida 34ii2-5749 • (239)252-8400 • FAX:(239)'2-52-b300 Packet Page -1021-