Agenda 05/10/2011 Item #16C1
5/10/2011 Item 16.C.1.
EXECUTIVE SUMMARY
Approve a Florida Department of Environmental Protection Certification of Financial
Responsibility Form for the South County Regional Water Treatment Plant Injection
Well, IW-2.
OBJECTIVE: The public purpose of this project is to provide a reliable disposal system for
concentrate from the reverse osmosis water treatment system at the South County Regional
Water Treatment Plant (SCR WTP). The SCR WTP provides drinking water to customers
throughout the service area, This action is to cenify unconditionally to the Florida
Depanment ofEnviromnental Protection (FDEP) the Collier County Water-Sewer District's
obligation to perform plugging and abandonment of the injection system pursuant to Chapter
62-528, F.A.C,
CONSIDERATIONS: The permit for the existing injection well, IW -2, located at the
SCRWTP expires on July 16,20] 1, The pemlit renewal application includes the renewal of
the Class I Injection Well permit, and a request to modify the pennit to allow for major
repairs to the well. The permit application was submitted to FDEP, and requires that the
Collier County Water-Sewer District complete and execute a Certification of Financial
Responsibility fonn (copy attached). This fonn certifies that the Collier County Water-
Sewer District will be unconditionally obi igated to have the iinancial resources necessary to
close, plug. and abandon the Class 1 injection well and related monitoring wells. The current
plugging and abandonment cost estimate is $731.578. In the event that the injection well
system fails to meet permit conditions, or this well is no longer required for its intended use,
then plugging and abandonment will become necessary.
FISCAL IMPACT: There is no fiscal impact associated with this action.
LEGAL CONSIDERATIONS: This item has becn reviewed and approved by the County
Attomey's Office and is legally sufficient for Board action. This item requires a majority
vote.-JBW.
GROWTH MANAGEMENT IMPACT: This project meets current Growth Management
Plan standards to ensure the adequacy and availability of viable public facilities.
RECOMMENDATIONS: That the Board of County Commissioners. as Ex-officio the
Goveming Board of the Collier County Water-Sewer District approve and authorize the
Chairman to execute the Certification of Financial Responsibility form.
Prepared by: Alicia Abbott, Project Manager, Public Utilities Planning and Projcct
Management
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5/10/2011 Item 16.C.1.
COLLIER COUNTY
Board of County Commissioners
Item Number:
16.C.1.
Item Summary: Approve a Florida Department of Environmental Protection Certification
of Financial Responsibility Form for the South County Regional Water Treatment Plant Injection
Well,IW-2,
Meeting Date: 5/10/2011
Prepared By
Name: AbbottAlicia
Title: Project Manager,Public Utilities Engineering
4/19/2011 4:53:39 PM
Submitted by
Title: Project Managcr.Public Utilities Engineering
Name: AbbottAlicia
4/19/2011 4:53:42 PM
Approved By
Name: HapkeMargie
Title: VALUE MISSING
Date: 4/211201 I I :07:55 PM
Name: Steve Messner
Title: Plant Manager.Water
Date: 4/21/20112:26:25 PM
Name: WidesTom
Title: Director - Operations Support - PUD.Utilities Fina
Date: 4/21/2011 3:50:09 PM
Name: SunyakMark
Title: Project Manager, Principal, Public Utilities Engineering
Date: 4/22/2011 8:56:43 AM
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5/10/2011/tem 16.C.1.
Name: SunyakMark
Title: Project Manager. Principal'public Utilities Engineering
Date: 4/22/2011 9:09:06 AM
Name: Paul Mattausch
Title: Director - Water. Water
Date: 4/22/2011 3:31 :51 PM
Name: DeLonyJim
Title: Administrator - Public Utilities,
Date: 4/22/2011 3:38: 16 PM
Name: WhiteJennifer
Title: Assistant County Attorney,County Attorney
Date: 4/22/20]] 3:52:10 PM
Name: GreenwaldRandy
Title: Management/Budget AnalySI,Office of Management & B
Date: 4/25/2011 11:13:53 AM
Name: KlatzkowJeff
Title: County Attorney.
Date: 4/28/2011 1: 12:46 PM
Name: OchsLeo
Title: County Manager
Date: 5/1/2011 11:12:31 AM
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5/10/2011 Item 16.C.1.
LA YNE CHRISTENSEN COMPANY
5061 Luckett Road, Fort rvlycrs, FL 33905. Phone: 239-275-1029. Fax; 239<275-1025
\\',\ \\ ,LtYlh:'i:I1!'j:,t~'ll~,l'll.Clllll
February 7. 2011
I "fA ELECTRONIC MAlL AND US. ,\/;111.
COM
Attn.: Doug Wells. Environmental Scientist
12501 World Plaza Lane, Bldg. 51
1'011 Myers, FL 33907-3991
Re.: Collier Country South County Regional Water Treatment Plant Deep Injection Well System
Updated Plug and Abandonment Cost Estimatc
Dear Doug:
In response to your February l>l e-mail, we arc providing the attached updated cost estimate for the
plugging and abandonmcnt of the Collier COLlntry South County Regional Watcr Treatmcnt Plant Deep
Injection Well System.
This estimate is based upon current labor rates and matcrial costs. It is based upon the well diagrams
and abandonment plan that you provided, Wc hope you find this estimate to be helpful and look
lixward to being of assistance in the fLlture.
Respecthll1y.
Layne Christensen Company
,;.;'p-'
Chris Bannon.
Project ['v1anage!"
~,r.P-' @
"'I11!JIU![
De\,(l/oping frUlt'r J?e~~)[{r('es S'ince 1882
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5/10/2011 Item 16.C.1.
LA YNE CHRISTENSEN COMPANY
5U6] Luckett Road. ForI Myers. FL 3:;905. PhonC" 2:;9<:~75-]0.29. Fa:\:: 2:;9.275-]025
\'. \\ I.:, :1':i.'I1:':'L'II',~'II.','r)j! I
February 7.2011
Plug and Abandonment Cost Estimate for
Collier Country South County Regional \Vater Treatment Plant
Deep Injection Well System (lW-l, [W-2 and DZMW)
Suppress artesian flow of IW-l 1Il1dl\\-2 usin!,' mud. remove wellheads
$ 21,500
$ 120.000
$ 70.000
$ 20.000
'I; 60J)OO
); 60.000
Pad retro-li ts
M obiJ ization-demobilizat i on
Ivlechanical integrity tests llflW -I and IW-2
Cut ]incr ahOl'e 1 X' cement grout seal. remOlc 20" steel liner fh1111 IW-l
Unseat packer if possible and remove 20" steel liner li'Oln ]W-2 and
Fill open holes orlW-l and ]W-2 with grJ\'c1 to appro"imatcly 10' belm\"
bottom orcaeh 24" easine (estimated ~.615 ft' $3.50/n')
$ 12.652
FiIJ remaining 1 (f oj opcn holes and] 00% of 24"' casings or lW-l and IW-2
with neat cemenl (estimated] 4.60X n' 'ii' 'I; I 2.UU!t)')
'I; 175.296
IllstalJ cement bllskct!plllgat bottom of6-5/X" OD ])!~'IW-l c"sing lmd ljJl
the 6-5/8" and ]6" DLM\\' casings \\ith neat cement (estimated
l.850 n' $120U/1\')
'I; 25.20U
Clean up site. dispose of tubings and packer
\; 4~UOO
Subtotall,'r lW-l and DZldW-1 I,fo:; lmd libariljonlllent
'I; (,U9.64X
_"(J~;'h C(}llliJl;~cJl('.I'
S 121.930
Total Estimated Cost for IW and M\V Plug aIllI Abandonment
S 731,578
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5/10/2011 Item 16.C.1.
CERTIFICATION OF FINANCIAL RESPONSIBILITY
The Collier County Board of Commissioners, a unit of local government of
the State of Florida, hereby certifies that it has unconditionally
oblig-ated itself to have the financial resources necessary to close,
plug, and abandon its Class I 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 February 7, 2011, shall be
reviewed on an annual basis and this obligation shall incorporate
accumulated inflation costs, An annual adjustment exceeding 10 percent
in anyone year shall require submission of an updated certification
form.
List of Injection Wells Covered By This Agreement:
well list the following information)
(for each injection
Facility Name:
South County Regional Water Treatment plant
Facility Address:
3851 Utilities Drive, Naples, FL
Facility Contact:
Steve ~"lessner
Phone Number:
(239) 252-6937
Latitude/Longitude of Injection Well:
26"09'52'N / 81"CO'5S"W
DEP/EPA Identification Number: FLS 173528-003 & OOC-DO
Current Plugging and Abandonment Cost Estimate: $731,578
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.
ATTEST:
Date:
Dwight E. Brock, Clerk
BOARD OF COUNTY COMMISSIONERS,
COLLIER COUNTY, FLORIDA
By:
By:
Fred W. Coyle, Chairman
,Deputy Clerk
STATE OF FLORIDA)
COUNTY OF COLLIER)
Acknowledged before me this _day of 2011, by Fred W. Coyle,
known to me to be the Chairman of the Board of County Commissioners of
Collier County, Florida.
By:
Approved as to form and Notary Public
legal sufficiency:
By: Jenni~r"::2i~
Assistant County Atton P k
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5/10/2011 Item 16.C.1.
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tir:>>;:;;7J"f( 1%\
i'gl (;',l,0:~"'4. If,VI
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Office of the County Attorney
Jeffrey A. Klatzkow
Deputy County Attorney' Scott R. Teach
Section Chiefs. Heidi F. Ashton~Cicko<< Jacqueline W. Hubbard* "'Boanl Cer1if,cd City. County and l..oc61 Government Law
Assistant County Attorneys. C..olleen M. Greene Jennifer B. White Steven T. Williams Jeff E. Wright
April 20, 2011
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 defmed in S 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 I,
Florida Constitution and S 7.1 I, Florida Swtutes. 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,
~-blr0~
Jemlifer B. White
Assistant County Attorney
JBW/sh
] 1~PUI:;>00253(6
3299 East Tamiami Trail, Suite 800 . Naples Florida 34112<>749 . (239) 252~8400 . FAX: (239) 252-6300
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5/10/2011 Item 16.C.1.
Local Government Guarantee
A unit of local government of the State of Florida may demonstrate financial
responsibility as required in Rule 62-528,435(9), FAC., by submitting all of the
following information:
1. The local government must submit a letter from its attorney attesting to the
permittee meeting the definition of a local government as defined in Chapter 218,
Florida Statutes (F.S.). The attorney must also attest to the local government's
coverage under Chapter 218, Part V, F.S., Financial Emergencies. A copy of
Chapter 218, Part V, F,S., is provided with this attachment.
If the permittee is unable to obtain a letter from its attorney regarding its status as a
local government, an alternate demonstration of financial responsibility must be
submitted to the FDEP. The alternatives suggested by the FDEP are:
a. Surety Bond
b. Letter of Credit
c. Trust Fund
d. Financial Test
2. The local government must submit a Certification of Financial Responsibility which
certifies unconditionally the obligation of the local government to perform plugging
and abandonment of its injection system(s) pursuant to Chapter 62-528, FAC. The
certification form provides information on the location of the injection system(s)
guaranteed by the local government with the related cost estimates for plugging and
abandonment.
The certification allows for an annual cost increase of 10 percent without
submission of an updated certification form. Cancellation of the agreement may not
take place without the written consent of the FDEP Secretary. (10% increase
applies only within a permit cycle - financial responsibility must address full amount
when renewing or reissuing a permit)
The person signing the Certification on behalf of the local government must be an
individual authorized to bind the local government to such an agreement. The
signing of this agreement must be notarized to complete the processing of the
"Certification of Financial Responsibility" form. The wording of the certification form
is provided with this attachment.
3. A copy of the financial statements (for the local government) for the latest
completed fiscal year must accompany items 1 and 2 above to complete the
financial package for review by the FDEP. If the Department finds through its
review of the financial statements that the financial strength of the unit of local
government is questionable, the Department may notify the permittee of its
intentions to deny the financial package as submitted. The permittee would then be
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required to submit an alternate financial demonstration to meet the requirements of
Rule 62-528.435(9), FAC.
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Pluf!fdnf! and Abandonment Plan/Cost Determination - In order to demonstrate fmancial
responsibility a permittee or applicant must submit a detailed plugging and abandonment (P&A)
plan to the Department for approval. The P&A plan should contain the following information;
1. A step-by-step plugging plan indicating where cement and other fillers (if any) will be
placed.
2. A drawing showing the well construction and proposed placement of plugging materials.
Appropriate depths should be indicated on this drawing.
3. Calculations showing the derivation of the volume of cement and other fillers (if any)
needed to plug the well according to the plan prepared in Items I and 2 above. Separate
calculations should be made for each well.
4. Calculations showing the derivation of the total cost for plugging each well. Costs should
be itemized for each well (i.e. cement cost, mobilization cost, etc.). Financial responsibility
must be demonstrated for the sum of the total costs for all injection and associated monitor
wells at a facility.
Timinf! of Demonstrations - Department rules require that financial responsibility be
demonstrated at the time of permitting and maintained. A demonstration of financial
responsibility will be required for each construction and operation permit application, Also, at
any time during a permit cycle, if updated plugging and abandonment costs exceed the initial
financial certification amount by ten percent or more, then a redemonstration shall be submitted
to the Department. Updated plugging and abandonment cost estimates should be provided to the
Department at the midpoint of the permit cycle. Permittees which utilize a UIC Financial Test
shall redemonstrate annually, and forward the latest annual report or financial statcment.
Financial responsibility is required for Class I injection wells, and any monitor well which
penetrates to a depth below the underground source of drinking water.
Summary - Department UIC rules require that a permittee for a Class I injection well
demonstrate and maintain financial responsibility. To do this, the applicant or permittee must
first develop a plugging and abandonment plan and determine the cost associated with
implementing this plan should it become necessary. These costs should be updated during the
midpoint of the permit cycle and if the cost is ten percent or more above the amount of the
previous financial responsibility demonstration is based, then a redemonstration must be made to
the Department. Once the costs have been determined, several methods are available to
demonstrate financial responsibility. Each method is described in the Department's guidelines
for demonstrating financial responsibility.
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5/10/2011 Item 16.C.1.
CHAPTER 218
FINANCIAL MATTERS PERTAINING TO POLITICAL SUBDIVISIONS
PART V
FINANCIAL EMERGENCIES
218.50 Short title.-Sections 218.50-218.504 shall be known as the "Local
Government Financial Emergencies Act."
History.--s, 8, ch, 79-183.
218.501 Purposes.--The purposes of ss. 218.50-218.504 are:
(1) To preserve and protect the fiscal solvency of local governmental entities.
(2) To assist local governmental entities in providing essential services without
interruption and in meeting their financial obligations.
(3) To assist local governmental entities through the improvement of local
financial management procedures.
History.-s. 8, ch. 79-183; s, 25, ch. 96-324.
218.502 Definition.--As used in ss. 218.50-218.504, the term "local
governmental entity" means a county, municipality, or special district.
History.--s. 8, ch, 79-183; s. 26, ch. 96-324.
218,503 Determination of financial emergency,--
(1) A local governmental entity is in a state of financial emergency when any of
the following conditions occurs:
(a) Failure within the same fiscal year in which due to pay short-term loans from
banks or failure to make bond debt service payments when due.
(b) Failure to transfer at the appropriate time, due to lack of funds:
1. Taxes withheld on the income of employees; or
2. Employer and employee contributions for:
a. Federal social security; or
b. Any pension, retirement, or benefit plan of an employee.
(c) Failure for one pay period to pay, due to lack of funds:
1. Wages and salaries owed to employees; or
2. Retirement benefits owed to former employees.
(d) An unreserved or total fund balance or retained earnings deficit for which
sufficient resources of the local governmental entity are not available to cover the deficit
for 2 successive years.
(e) Noncompliance of the local government retirement system with actuarial
conditions provided by law.
(2) A local governmental entity shall notify the Governor and the Legislative
Auditing Cornmittee when one or more of the conditions specified in subsection (1) have
occurred or will occur if action is not taken to assist the local governmental entity. In
addition, any state agency must, within 30 days after the identification of the financial
emergency, notify the Governor and the Legislative Auditing Committee when one or
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more of the conditions specified in subsection (1) have occurred or will occur if action is
not taken to assist a local governmental entity.
(3) Upon notification that one or more ofthe conditions in subsection (1) exist,
the Governor or his or her designee shall contact the local governmental entity to
detennine what actions have been taken by the local governmental entity to resolve the
financial emergency. The Governor has the authority to implement measures as set
forth in ss. 218.50-218.504 to resolve the financial emergency. Such measures may
include, but are not limited to:
(a) Requiring approval of the local governmental entity's budget by the Governor.
(b) Authorizing a state loan to the local governmental entity and providing for
repayment of same.
(c) Prohibiting a local govemmental entity from issuing bonds, notes, certificates
of indebtedness, or any other fonn of debt until such time as it is no longer subject to
this section.
(d) Making such inspections and reviews of records, information, reports, and
assets of the local governmental entity, in which inspections and reviews the
appropriate local officials shall cooperate.
(e) Consulting with the officials of the local governmental entity and the
appropriate state agency regarding any steps necessary to bring the books of account,
accounting systems, financial procedures, and reports into compliance with state
requirements.
(f) Providing technical assistance to the local governmental entity.
(g)
1. Establishing a financial emergencies board to oversee the activities of the local
governmental entity. The board, if established, shall be appointed by the Governor. The
Governor shall select a chair and such other officers as are necessary. The board shall
adopt such rules as are necessary for conducting board business. The board rnay:
a. Make such reviews of records, reports, and assets of the local governmental
entity as are needed.
b. Consult with the officials of the local governmental entity and appropriate state
officials regarding any steps necessary to bring the books of account, accounting
systems, financial procedures, and reports of the local governmental entity into
compliance with state requirements.
. c. Review the operations, management, efficiency, productivity, and financing of
functions and operations of the local governmental entity,
2, The recommendations and reports made by the board must be submitted to
the Governor for appropriate action.
(h) Requiring and approving a plan, to be prepared by the appropriate state
agency in conjunction with the local governmental entity, prescribing actions that will
cause the local governmental entity to no longer be subject to this section. The plan
must include, but need not be limited to:
1. Provision for payment in full of all payments due or to come due on debt
obligations, pension payments, and all payments and charges imposed or mandated by
federal or state law and for all judgments and past due accounts, as priority items of
expenditures,
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5/10/2011 Item 16.C.1.
2. Establishment of a basis of priority budgeting or zero-based budgeting, so as
to eliminate low-priority items that are not affordable.
3, The prohibition of a level of operations which can be sustained only with
nonrecurring revenues.
(4) During the financial emergency period, the local governmental entity may not
seek application of laws under the bankruptcy provisions of the United States
Constitution except with the prior approval of the Governor.
History.--s, 8, ch. 79-183; s. 54, ch. 89-169; s.1180, ch. 95-147; s. 27, ch. 96-324; s.
29, ch. 97-96.
218.504 Cessation of state action,-- The Governor has the authority to
terminate all state actions pursuant to ss. 218.50-218.504. Cessation of state action
must not occur until the Governor has determined that:
(1) The local governmental entity:
(a) Has established and is operating an effective financial accounting and
reporting system.
(b) Has corrected or eliminated the fiscal emergency conditions outlined in s.
218.503.
(2) No new fiscal emergency conditions exist.
History.--s, 8, ch. 79-183; s. 28, ch. 96-324.
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