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
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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
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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
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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
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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°
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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
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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
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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
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