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Agenda 07/14/2020 Item #16C 1 (Resolution - Major User Agmt. Amendment #1 for IQ Water Delivery)07/14/2020 EXECUTIVE SUMMARY Recommendation to approve: (1) Amendment No. 1 to the Major User Agreement for Delivery and Reuse of Irrigation Quality (“IQ”) Water enhancing the County's ability to add new customers when the IQ system’s capacity can sustain it; and (2) a Resolution authorizing the Chairman to sign the amendment as the executed versions are returned by Major User customers. OBJECTIVE: To obtain approval of: (1) Amendment No. 1 to IQ Water Major User Agreements; and (2) a Resolution authorizing the Chairman to sign the amendment as executed versions are returned by Major User customers. To allow Collier County to offer the full IQ Water Application Rate (“IQWAR”) Allocation to Bulk Service Customers, removing a constraint on the addition of new IQ customers. CONSIDERATIONS: On June 11, 2013, the Board approved a standardized format for the Major User Agreement for Delivery and Reuse of IQ Water (the “Agreement”) to be utilized by all the Major Users of the District’s IQ Water. The Agreements are scheduled to terminate on September 30, 2020, subject to being renewed for successive five-year terms upon the mutual agreement of the parties. In addition to extending the term for five years until September 30, 2025, Amendment No. 1 makes other changes. Current Bulk Service Customers’ Agreements include “Allocations” based upon the irrigable acres of their respective properties. The Allocations are the minimum amount, in gallons per day, the County agrees to deliver. These Allocations are a percentage of the full IQ Water Application Rate of 1- inch per acre per week. They were set at these amounts to match the delivery capacity of the IQ system in 2013. Based on experience over the past six years, staff has determined that the IQ system has the capacity to offer Bulk Service Customers Allocations equal to the full IQ Water Application Rate. Not all Bulk Service Customers will request the full Allocation, since the Allocation also serves as the minimum amount of IQ Water for which customers are billed, regardless of the amount delivered. Attachment 2 shows the current Allocations and the full Allocation for each Bulk Service Customer. This change does not affect Pressurized Service Customers. Making this offer of a full IQWAR removes the constraint in the existing Agreement to not add any new IQ customers, and will make it possible to add new customers when the IQ system’s capacity can sustain it. The Amendment also adds language addressing Major Users’ responsibilities to maintain and operate their IQ water distribution system in accordance with industry standards and provides recourse to the County in the event of repeated spills of IQ Water on the customer’s side of the Point of Delivery. The amendment clarifies Major Users’ responsibilities to perform cross-connection inspections every five years. The Amendment also updates position titles to reflect changes since inception of the current Agreement. Attached is a proposed Amendment No. 1 with standard language (the “Standard Amendment”) applicable to 21 of the Major Users because they are provided either Bulk or Pressurized service. Two other Major Users, the Glades Country Club, Inc. and Vineyards Utility, Inc., are provided with both Bulk and Pressurized service. Separate proposed Amendments for those two Major Users, which includes slightly different language to address their unique situations as both Bulk and Pressurized customers, are also attached for approval. Staff met with each of the Major Users during March 2020 to discuss the pr oposed Amendment, to seek input and answer any questions. In general, the meetings were positive and productive. No significant objections or concerns were raised as to the proposed Amendment during those meetings. 16.C.1 Packet Pg. 1473 07/14/2020 FISCAL IMPACT: Higher Allocations to Bulk Users will result in increased revenues for IQ Water. These increased revenues are estimated between $500,000 and $1,000,000 per year. The revenues will accrue to the Collier County Water-Sewer District Operating Fund (408). GROWTH MANAGEMENT IMPACT: This recommendation is consistent with current Growth Management Plan standards to ensure the adequacy and availability of viable public facilities. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. -SRT RECOMMENDATION: That the Board of County Commissioners, as the Ex-officio Governing Board of the Collier County Water-Sewer District approves: (1) Amendment No. 1 to the IQ Water Major User Agreement for Delivery and Reuse of Irrigation Quality (“IQ”) Water; (2) the attached Amendment No. 1 for Bulk and Pressurized Customers, Glades Country Club, Inc. and Vineyards Utility, Inc., and (3) a Resolution authorizing the Chairman to sign the Amendments as executed versions are returned by Major User customers. Prepared By: John H. Eick, P.E., Senior Project Manager, Engineering and Project Management Division ATTACHMENT(S) 1. Amendment No. 1 Major User Agreement (PDF) 2. Vineyards Amend No 1 (PDF) 3. Glades Amendment 1 (PDF) 4. Resolution (PDF) 5. Attach. 3 - Major Users (PDF) 16.C.1 Packet Pg. 1474 07/14/2020 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.1 Doc ID: 12392 Item Summary: Recommendation to approve: (1) Amendment No. 1 to the Major User Agreement for Delivery and Reuse of Irrigation Quality (“IQ”) Water enhancing the County's ability to add new customers when the IQ system’s capacity can sustain it; and (2) a Resolution authorizing the Chairman to sign the amendment as the executed versions are returned by Major User customers. Meeting Date: 07/14/2020 Prepared by: Title: Project Manager, Senior – Public Utilities Planning and Project Management Name: John Eick 05/15/2020 4:21 PM Submitted by: Title: Division Director - Public Utilities Eng – Public Utilities Planning and Project Management Name: Tom Chmelik 05/15/2020 4:21 PM Approved By: Review: Water Steve Messner Additional Reviewer Completed 05/18/2020 8:39 AM Public Utilities Planning and Project Management Tom Chmelik Additional Reviewer Completed 05/18/2020 9:01 AM Wastewater Beth Johnssen Additional Reviewer Completed 05/18/2020 11:30 AM Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 05/19/2020 4:04 PM Water Robert Kaine Additional Reviewer Completed 05/20/2020 1:32 PM Facilities Management Toni Mott Additional Reviewer Completed 05/22/2020 2:10 PM Public Utilities Department Drew Cody Level 1 Division Reviewer Completed 05/29/2020 3:20 PM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 06/01/2020 10:07 AM County Attorney's Office Scott Teach Level 2 Attorney Review Completed 06/09/2020 11:27 AM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 06/09/2020 11:34 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/09/2020 1:49 PM Budget and Management Office Ed Finn Additional Reviewer Completed 06/15/2020 9:22 AM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 06/15/2020 9:49 AM Board of County Commissioners MaryJo Brock Meeting Pending 07/14/2020 9:00 AM 16.C.1 Packet Pg. 1475 16.C.1.a Packet Pg. 1476 Attachment: Amendment No. 1 Major User Agreement (12392 : Extend IQ Major User Agreements) 16.C.1.a Packet Pg. 1477 Attachment: Amendment No. 1 Major User Agreement (12392 : Extend IQ Major User Agreements) 16.C.1.a Packet Pg. 1478 Attachment: Amendment No. 1 Major User Agreement (12392 : Extend IQ Major User Agreements) 16.C.1.a Packet Pg. 1479 Attachment: Amendment No. 1 Major User Agreement (12392 : Extend IQ Major User Agreements) 16.C.1.a Packet Pg. 1480 Attachment: Amendment No. 1 Major User Agreement (12392 : Extend IQ Major User Agreements) 16.C.1.a Packet Pg. 1481 Attachment: Amendment No. 1 Major User Agreement (12392 : Extend IQ Major User Agreements) 16.C.1.a Packet Pg. 1482 Attachment: Amendment No. 1 Major User Agreement (12392 : Extend IQ Major User Agreements) 16.C.1.a Packet Pg. 1483 Attachment: Amendment No. 1 Major User Agreement (12392 : Extend IQ Major User Agreements) 16.C.1.a Packet Pg. 1484 Attachment: Amendment No. 1 Major User Agreement (12392 : Extend IQ Major User Agreements) 16.C.1.a Packet Pg. 1485 Attachment: Amendment No. 1 Major User Agreement (12392 : Extend IQ Major User Agreements) 16.C.1.bPacket Pg. 1486Attachment: Vineyards Amend No 1 (12392 : Extend IQ Major User Agreements) 16.C.1.bPacket Pg. 1487Attachment: Vineyards Amend No 1 (12392 : Extend IQ Major User Agreements) 16.C.1.bPacket Pg. 1488Attachment: Vineyards Amend No 1 (12392 : Extend IQ Major User Agreements) 16.C.1.bPacket Pg. 1489Attachment: Vineyards Amend No 1 (12392 : Extend IQ Major User Agreements) 16.C.1.bPacket Pg. 1490Attachment: Vineyards Amend No 1 (12392 : Extend IQ Major User Agreements) 16.C.1.bPacket Pg. 1491Attachment: Vineyards Amend No 1 (12392 : Extend IQ Major User Agreements) 16.C.1.bPacket Pg. 1492Attachment: Vineyards Amend No 1 (12392 : Extend IQ Major User Agreements) 16.C.1.bPacket Pg. 1493Attachment: Vineyards Amend No 1 (12392 : Extend IQ Major User Agreements) 16.C.1.bPacket Pg. 1494Attachment: Vineyards Amend No 1 (12392 : Extend IQ Major User Agreements) 16.C.1.bPacket Pg. 1495Attachment: Vineyards Amend No 1 (12392 : Extend IQ Major User Agreements) 16.C.1.cPacket Pg. 1496Attachment: Glades Amendment 1 (12392 : Extend IQ Major User Agreements) 16.C.1.cPacket Pg. 1497Attachment: Glades Amendment 1 (12392 : Extend IQ Major User Agreements) 16.C.1.cPacket Pg. 1498Attachment: Glades Amendment 1 (12392 : Extend IQ Major User Agreements) 16.C.1.cPacket Pg. 1499Attachment: Glades Amendment 1 (12392 : Extend IQ Major User Agreements) 16.C.1.cPacket Pg. 1500Attachment: Glades Amendment 1 (12392 : Extend IQ Major User Agreements) 16.C.1.cPacket Pg. 1501Attachment: Glades Amendment 1 (12392 : Extend IQ Major User Agreements) 16.C.1.cPacket Pg. 1502Attachment: Glades Amendment 1 (12392 : Extend IQ Major User Agreements) 16.C.1.cPacket Pg. 1503Attachment: Glades Amendment 1 (12392 : Extend IQ Major User Agreements) 16.C.1.dPacket Pg. 1504Attachment: Resolution [Revision 1] (12392 : Extend IQ Major User Agreements) 16.C.1.dPacket Pg. 1505Attachment: Resolution [Revision 1] (12392 : Extend IQ Major User Agreements) Major Users Type of Service Current Allocation (gpd)Full Allocation (gpd) Audubon Golf and Country Club Bulk 405,679 788,000 Autumn Woods Community Association, Inc.Bulk 90,508 327,000 Collier County Parks and Recreation Department Bulk 165,869 322,000 Colliers Reserve Country Club, Inc.Bulk 206,080 536,000 Countryside Golf and Country Club Bulk 257,600 501,000 Foxfire Community Association Bulk 374,035 727,000 Glades Golf and Country Club Bulk and Pressurized 450,000 641,000 Hibiscus Golf Club Bulk 257,600 582,000 Imperial Golf Club Bulk 360,640 931,000 LaPlaya Golf Club Bulk 225,821 439,000 Lely Resort Golf and Country Club Bulk 618,240 1,397,000 Lely Community Development District Bulk 772,800 2,409,000 Riviera Golf Club Bulk 119,905 233,000 The Club Pelican Bay Bulk 257,600 621,000 Vineyards Bulk and Pressurized 700,000 1,956,000 Windstar on Naples Bay Bulk 199,842 388,000 5,462,219 12,798,000 Beachwalk Residents Association Pressurized Calusa Bay Pressurized Collier County Facilities Management Division Pressurized Lakewood Country Club of Naples Pressurized Lakewood Community Services Pressurized Royal Palm Country Club Pressurized Tarpon Cove Community Association Pressurized 78,000 Attachment 2--Summary of IQ Major Users 427,000 148,000 114,000 187,000 400,000 104,000 Bulk Users Pressurized Users Totals Anticipated Usage (gpd) 16.C.1.e Packet Pg. 1506 Attachment: Attach. 3 - Major Users (12392 : Extend IQ Major User Agreements)