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HomeMy WebLinkAboutR-2006-102 Settlement agreement between City of Dania Beach and City of Hollywood regarding wastewater effluent meter RESOLUTION NO. 2006-102 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AUTHORIZING THE PROPER CITY OFFICIALS TO EXECUTE A SETTLEMENT AGREEMENT BETWEEN THE CITY OF DANIA BEACH AND THE CITY OF HOLLYWOOD FOR PAYMENT OF $461,313 TO DANIA BEACH IN SETTLEMENT OF A DISPUTE REGARDING THE WASTEWATER EFFLUENT METER, AND PAYMENT OF $448,687 TO DANIA BEACH REPRESENTING DANIA BEACH'S SHARE OF THE DEBT SERVICE RESERVE, FOR A COMBINED TOTAL OF $910,000, AND CONDITIONAL PERMISSION TO BE GRANTED TO DANIA BEACH TO DISCHARGE MEMBRANE CONCENTRATE FROM THE PROPOSED DANIA BEACH MEMBRANE SOFTENING (NANOFILTRATION) WATER TREATMENT PLANT INTO THE SEWER SYSTEM; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH,FLORIDA: Section 1. That the proper City officials are authorized to execute the attached Settlement Agreement between the City of Dania Beach and the City of Hollywood for payment of$461,313 to Dania Beach in settlement of a dispute regarding the wastewater effluent meter, and payment of $448,687 to Dania Beach representing Dania Beach's share of the debt service reserve, for a combined total of$910,000, and conditional permission to be granted to Dania Beach to discharge membrane concentrate from the proposed Dania Beach Membrane Softening (nanofiltration) Water Treatment Plant into the sewer system. Section 2. That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. . Section 3. That this Resolution shall. be in force and take effect immediately upon its passage and adoption. PASSED AND ADOPTED on June 13, 2006. PATRICIA FLURY MAYOR—COMMISSIONER ATTEST: LOUISE STILSON, CMC CITY CLERK APPROVED-AS TO FO AND CORRECTNESS: BY: � THOM AS"J': ANSBRO CITY ATTORNEY 2 RESOLUTION #2006-102 =' m CITY OF DAN IA BEACH Agenda Item# — Agenda Request Database Date of Commission Meeting: 6/13/2006 Adopt Resolution ® Adopt Ordinance(1st Reading) ❑ Adopt Ordinance (2nd Reading) ❑ Award Bid/RFP ❑ Presentation ❑ Continued from: Requested Action {Idenfity appropriate Acts©n or Motion) a 5 y..,.. a<.., �, . .r �` . ¢n« . .�... ... ..... .. ...E, „ s -` Adopt resolution U4Ihy ACtIOn 1S Necessary t _ •..<.,�__ x, .,,a��,� �',....�_ ._. ,yam , >. .��.s� _°�:..., ,,.�,. .z .�a�?" �;�>., , ,.._ �'_.. ...,,,�,��� _, n.,.,., . . ;s To allow City officials to sign an agreement with the City of Hollywood allowing settlement of a dispute over the Wastewater Effluent Meter charges under the "Large Users" agreement; providing for other monetary reimbursement and conditional approval for the City, granting the City permission to discharge "membrane concentrate"from our proposed Membrane Softening (Nanofiltration) Plant. ra x r & d!lhat Action Accomphshes� � 9 .�� . .. �. . ,, n �. ..,._ .... . �R To settle overcharges of the effluent meter under the large user agreement, other monetary reimbursement and address the discharge of concentrates from the proposed Plant upgrade. Purchasing R"uests�ONLY Dept: 1400 City Attorney Acct#: Amt: Fund: General: ❑ Water: ❑ Sewer: ❑ Stormwater: ❑ Grants: ❑ Capital: ❑ Summary Explanation/Background ' H _ :r, �, .� .. ._ .. __ . ..u. .. . The foregoing have been ongoing issues that need to be settled between the City of Dania Beach and the City of Hollywood. Fiscal Impact/Cost Summary - z3 None Exh�bitsAttached ' r � h ry A, 4L a Resolution Memo Copy of Hollywood Resolution Copy of Settlement Agreement Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4 Exhibit 5 Exhibit 6 Exhibit 7 Exhibit 8 *, Authorizetl Signatures �� f ' w . 'z � __ . Submitted by Leo Williams Date 06/06/06 Department Director Dominic Orlando Date 06/06/06 HR Director Date Finance Director Patricia Varney Date 06/06/06 City Attorney Thomas J. Ansbro Date 06/06/06 City Manager Ivan Pato Date 06/06/06 City Clerk Use z j � �� Commission Action: Approved: ❑ Denied: ❑ Continued to: ❑ ilk's City of Dania Beach Department of Public Services y_ 100 West Dania Beach Blvd Dania Beach,FL 33004 (954)924-3741 ') 1•�d.._...w,� ,.rr .., ,,,. ,, .... • (954)-923-1109(fax) MEMORANDUM To: Mayor Patricia Flury Vice Mayor Robert Anton Commissioner Anne Castro Commissioner John Bertino Commissioner C. K. McElyea FROM: Ivan Pato, City Manager VIA: Dominic Orlando, P.E. Director of Public Services BY: Leo Williams, Public Services Superintendent LW Date: June 5, 2006 Staff is recommending that the Commission at the June 13, 2006 meeting authorize City Officials to execute a settlement agreement with the City of Hollywood regarding a dispute over wastewater effluent meter charges and other monetary adjustments, by payment from Hollywood to Dania Beach of the sum of$910,000.00. The agreement will also grant the City conditional permission to discharge membrane concentrate(Nanofiltration) from the proposed Dania Beach membrane Softening Water Treatment Plant into the sewer system. t 7�47�,51 1 tJ7 061'12/2006 16:07 9549231109 CITY OF DANIA BEACH PAGE 01/03 ,L t-ejrJO 1 UI ILITIES ADM IN 954 9674450 To SSS43231109 P. 01 O L L l/ 9FLd A cow C MUT A,LgO AlbertPemz,PE, Director (954)967.4455 Public utilities Mach 28, 2006 Dominic F, Orlando, P.B. Public Services Director City of Dania Bleach I00 W Dania Beech Blvd. Dania Beach, Fl 330W Re: Dania Beach's Request to Discharge Concentrate to the City of Hollywood Wastewater System . Dear I*. Orlando: The City of Hollywood has reviewed your request for the discharge of nanofiltration concentrate into the Hollywood wastewater system. In your letter you requested the issuance of an industrial wastewater permit at no cost, and also requested the waiving of surcharges for discharging the concentrate generated by the City of Dania Beach nanofiltration plant. We recoize that Dania gn Beach is a Large User of the Hollywood wastewater systern, and is therefore bound by the terms and conditions of the Lager User Agreement. The Large User greent provisions to address this request, and therefore should be used as t as for evaluatingProvides equate request. Accordingly, we feel that the issuance of an industrial permit is not required sice the Large User Agreement sufficiently addresses said request. Based on the foregoing considerations, Hollywood f the City oBeach to discharge nanofiltration concentrate into of Hollywood will allow The City of Dania please note that ywood wastewater system. However, approval of this request will be exclusively based on meeting the fo conditions during the application for permitting of the wastewatlowing Crer system for the project. The conditions below shall be made part of the wastewater permit accordingly. 1- The Biscayne aquifer shall be the exclusive source of raw water supply used. The use of Floridan aquifer water(with higher chlorides and MS levels) is not allowed. 2. The approval shall be limited to the proposed maximum concentrate flow of0.2 mgd. PUSLIC U17I Fr1r9 ADMINISTRATION /P,O. Box 229345 /FIollywood, Florida 33022-9045 / Fax (954) 967-4450 "Aa EgUAI ()pPortunity and Service Provider .LCep,ye 06/12/2006 16: 07 9549231109 CITY OF DANIA BEACH PAGE 02/03 r rc u I 1 L I T I ES ADM 1 N 954 9674450 TO 39549231109 P . O2 manic F. Orlando, PR Public Services Director City of Dania Beach March 28, 2006 Page 2 3. It is hereby established that Hollywood's obligations are limited to its commitrnetts under the Large User Agreement. There shall be no implied or explicit inference that Hollywood is committing to provide capacity assmnce required to maintain uninterrupted operation of its Dania Beach's water treatment system. Such capacity assurance may come by way of a concentrate disposal well. However, the City 4f )Drama Beach has chosen not to build a concentrate disposal WCIL and in lieu use the wasWwatcf system for discharge of their nanofiltration concentrate. 4. Dania Beach shall demonstrate its ability to provide full backup water supply or MainWn operations without the proposed nagoEltration facility in the event the City,$ ability to accept concentrate is temporarily interrupted. 5. Approval hinges on the position that the proposed flow will not be re-Classified as an industrial contribution by regulators in the future and thereby impact tt'estment requirements. Tunis Beach shall agree to equitably reimburse the City for any costs incurred to address future potential Changes in the regulatory classification of this flow. 6. An indemnification clause shall be exercised between the City of'Hollywood and the City of Dania Beach to hold the City of Hollywood harmless against any claims or actions resulting from Dania Beach's inability to maintain uninterrupted water system operation as a result of any possible problen13 experienced by the Hollywood wasterovater system that would preclude Darda Beach from discharging concentrate into the Hollywood wastewater system. The City of Hollywood would like to also put on the table for your consideration an alternative which we feel may provide a more cost effective solution to the expansion of your treatment facility. As you know, the City of Hollywood already operates a membrane facility which has e'er the years provided our residents with water of exceptional quality- The City of Hollywood would like to extend an o&r to sell you water from our system at a wholesale rate. We feel that this altemative will allow you to meet your City's goals at a cost which is significantly less than what you would otherwise have to pay if you have to undergo a costly plant expansion. Additionally, the City Of Hollywood will be willing to pay for the required modifications at our e)dsting points of connection with D�a .Beach to ens re en-sure that we cam rneet the additional water demands. 06/12/2006 16: 07 9549231109 CITY OF DANIA BEACH PAGE 03/03 "' `- LG100 13 ; 4u r-N UI ILITI�S ADMIN . 954 9674450 TO 99549231109 P . 03 DomWc IF. Orlando, P.B. Public Services Diwtor City of Dania Beach ch 23, 2006 Page If YOU h$ve any questions or require additional information, please do not hesitate to contact me at your earl{ Coco. S' P.E. motor of lic UtiWes C: ato, Dania Bah City Manager Pa V=ey, Dania Beach Finance Dbvaor Fred Blocttscber, Pb,D, PTJMPS/FAU Cameron Benson, Piollywood City ManaW Dan Abbott;Hollywood City Attorney Carlos Garcia, Hollywood Financial SeMees Director RESOLUTION NO. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF HOLLYWOOD, FLORIDA, AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO EXECUTE THE ATTACHED SETTLEMENT AGREEMENT BETWEEN THE CITY OF DANIA BEACH AND THE CITY OF HOLLYWOOD FOR PAYMENT OF $461,313 TO DANIA BEACH IN SETTLEMENT OF A DISPUTE REGARDNG THE WASTEWATER EFFLUENT METER, PAYMENT OF $448,687 TO DANIA BEACH REPRESENTING DANIA BEACH'S SHARE OF THE DEBT SERVICE RESERVE, AND CONDITIONAL PERMISSION TO DISCHARGE MEMBRANE CONCENTRATE FROM THE PROPOSED DANIA BEACH MEMBRANE SOFTENING (NANOFILTRATION) WATER TREATMENT PLANT INTO THE SEWER SYSTEM. WHEREAS, the City of Hollywood has Agreements known as "Large User Agreements" with other local governments for the treatment of wastewater, and these local governments are referred to as "Large Users"; and • WHEREAS, the City of Dania Beach is one of the Large Users; and WHEREAS, disputes exist between the Large Users and the City of Hollywood concerning the accuracy of the readings of the effluent meter used to determine the amount of flow of wastewater; and WHEREAS, the Hollywood City staff made contingent offers to each of the Large Users to settle the disputes, contingent upon a plan to refinance the 1993 debt of the utility system and through the means of an "Interest Rate Swap," in order to obtain sufficient resources to make payment on such offers; and WHEREAS, the City of Pembroke Pines took legal action against the City of Hollywood in its dispute over this issue, and the legal action precluded the City of Hollywood from being able to proceed with the refinancing; and WHEREAS, the City of Hollywood requested the City of Pembroke Pines send a letter indicating their agreement to the refinancing so that the City of Hollywood could refinance the bonds and obtain the resources through the Interest Rate Swap; and WHEREAS, by the time the City of Pembroke Pines sent such letter, the bond market had changed substantially and the resources available from the Interest Rate Swap would no longer have been sufficient to fund the settlement offers; and 1 WHEREAS, the City of Hollywood developed an alternative plan to obtain resources to make new settlement offers by replacing the Debt Service Reserve with a Surety Bond, thereby freeing up approximately $9 million; and WHEREAS, by Resolution Number R-2003-388, the City Commission of the City of Hollywood authorized the execution of a Joint Stipulation of Settlement between the City of Pembroke Pines and the City of Hollywood in settlement of their dispute over this issue; and WHEREAS, the City Manager of the City of Hollywood has made a settlement offer to the City of Dania Beach, and the City of Dania Beach has accepted the settlement offer; and WHEREAS, the amount of the settlement offer agreed to on the effluent meter issue, subject to approval of the City Commission, is $461,313; and WHEREAS, the City of Dania Beach is entitled to receive its portion of the Debt Service Reserve, calculated to be in the amount of$448,687; and WHEREAS, the City of Dania Beach plans to build a membrane softening (nanofiltration) water treatment plant and has requested permission from the City of Hollywood to discharge the concentrate flow from the plant into the sewer system; and • WHEREAS, the Public Utilities Director recommends the approval of this request, subject to the conditions stipulated in his letter dated March 28, 2006; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF HOLLYWOOD, FLORIDA: Section 1: That it hereby approves and authorizes the execution, by the appropriate City officials, of the attached Settlement Agreement between the City of Dania Beach and the City of Hollywood, together with such nonmaterial changes as may be subsequently agreed to by the City Manager and approved as to form and legality by the City Attorney. Section 2: That this resolution shall be in full force and effect immediately upon its passage and adoption. PASSED AND ADOPTED this day of , 2006. ATTEST: MARA GIULIANTI, MAYOR PATRICIA A. CERNY, MMC CITY CLERK 2 RESOLUTION APPROVING SETTLEMENT OF THREE UTILITIES MATTERS WITH DANIA BEACH APPROVED AS TO FORM & LEGALITY for the use and reliance of the City of Hollywood, Florida only: DANIEL L. ABBOTT, CITY ATTORNEY • 3 • GENERAL RELEASE OF ALL CLAIMS IN CONSIDERATION of payment in the amount of $910,000 and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in accordance with and by the authority of CITY OF DANIA BEACH RESOLUTION NO. 2006- 102, the CITY OF DANIA BEACH ("Releasor"), its successors, assigns, officers, agents, employees and attorneys, do hereby remise, release, acquit, satisfy, and forever discharge the CITY OF HOLLYWOOD ("Releasee"), its successors, assigns, officers, agents, employees and attorneys, of and from any and all manner of action or actions, cause and causes of action, suits, debts, dues, sums of money, damages, judgments, executions, claims, attorneys fees and costs and demands whatsoever, in law and equity, known or unknown, which Releasor, its officers, agents, employees or attorneys, ever had or now have, or which RELEASOR, its successors or assigns hereafter can, shall or may have in the future against Releasee, its successors, assigns, officers, agents, employees or attorneys, for, upon or by reason of any matter, cause or thing whatsoever, which pertains in any way to (i) any claim that Releasor was overcharged in connection with the provision of wastewater treatment services performed by Releasee pursuant to the LARGE USER AGREEMENT between Releasor and Releasee and (ii) any claim that Releasor is entitled to funds, either directly or indirectly, from the Regional Wastewater System Debt Service Reserve. IN WITNESS WHEREOF, we have hereunto set our hands and seal this 2006. CITY OF DANIA BEACH n ATTEST: By: Patricia Flury, Mayor Louise Stilson, CMC City Clerk Approved as to form & legality Thomas J. nsl�ro,'Jr. City Attq ey SETTLEMENT AGREEMENT • The City of Dania Beach ("DANIA BEACH"), Florida, a Florida municipal corporation, and the City of Hollywood ("HOLLYWOOD"), Florida, a Florida municipal corporation, hereby stipulate and agree as follows: 1. Within 30 days of this Agreement being fully executed, HOLLYWOOD will pay to DANIA BEACH the sum of $448,687, representing DANIA BEACH'S share of the eliminated $9 Million debt service reserve for the HOLLYWOOD Regional Wastewater Treatment Plant. 2. Within 30 days of this Agreement being fully executed, HOLLYWOOD will pay to DANIA BEACH the sum of$461,313, as compensation for the alleged under-recording by the effluent meter at the HOLLYWOOD Regional Wastewater Treatment Plant, which meter is and was indirectly used to charge DANIA BEACH for wastewater treatment services. 3. Pursuant to paragraphs 1 and 2 above, HOLLYWOOD will pay to DANIA BEACH the total sum of$910,000. 4. From this point forward, the effluent meter at the Wastewater Treatment Plant will be deemed a "large user meter" for purposes of making adjustments for meter inaccuracies pursuant to the Large User Agreement between HOLLYWOOD and DANIA BEACH. 5. DANIA BEACH shall execute the Release attached to this Agreement. 6. DANIA BEACH plans to build a membrane softening (nano frltration) water treatment plant and has requested permission from HOLLYWOOD to discharge the concentrate flow from the plant into the sewer system. HOLLYWOOD agrees to permit the discharge of membrane concentrate generated from the proposed DANIA BEACH membrane softening (nanofiltration) water treatment plant, subject to the conditions stipulated in the letter from • ,, Albert L. Perez, Public Utilities Director, dated March 28, 2006. CITY OF HOLLYWOOD, FLORIDA CITY OF DANIA,BEA32H,.FLORIDA By: By: `IVAN PATO Title: Title: CITY MANAGER STATE OF FLORIDA COUNTY OF BROWARD The foregoing instrument was acknowledged before me this _ day of 2006, by as of the City of Hollywood, Florida. Notary Public - State of Florida Print Name: Commission No.: Personally Known OR Produced Identification Type of Identification Produced My commission expires: STATE OF FLORIDA COUNTY OF BROWARD The foregoing instrument was acknowledged before me this Xf day of J L)41 2006, by . , t(( ,_ P41-D as G 17-1 /�� ; ;�� of the City of Dania Beach, Florida. \\�00��gE STILSp�ii,,�� c°�°any 10 20�9�; --C✓Ll/.l1 C1X� -* '* Notary Public - State of Florida y'. #D D49�� h:e Print Name: .<''i)rat. S77C ScR,� �y-.?61drySondedO�c � Commission No.: 1� '� �c' `"L / r i�oeUC,S1 F\`N\�`� Personally Known 'd vroduced Identification Type of Identification roduced My commission expires: • 2