07-1845 Authorizing Execution of Amendment VII to Interlocal Agreement with Orlando

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CITY MANAGER MEMORANDUM To: The Honorable Mayor Goff and City Commissioners From: Barbara Lipscomb, City Manager fi✓ Date: November 19, 2007 Subject: Resolution 07-1845 - Amendment VII to the Interlocal Agreement between the City of Casselberry and the City of Orlando Regarding the Iron Bridge Regional Wastewater Treatment Facility Introduction: This agenda item requests City Commission approval of Amendment VII to the Interlocal Agreement between the City of Casselberry and the City of Orlando regarding the Iron Bridge Regional Water Reclamation Facility. Background: In January, 1977 the City of Casselberry entered in an Intergovernmental Agreement with the City of Orlando and other participants for interest in the regional wastewater treatment facility commonly known as the Iron Bridge Facility (Iron Bridge). Under the terms of the agreement, the City was responsible for funding a proportional share of the Iron Bridge construction cost required to reserve wastewater treatment for the City's usage. An addendum to this agreement was executed in November, 1978 and although it expired on April 1, 2007, City staff and the City of Orlando agreed to extend the operation of Iron Bridge until a new agreement could be drafted. Discussion: Because the City does not currently have the capacity to treat all of the wastewater generated by its utility service area, it is paramount that the close professional relationship with the City of Orlando continues. Amendment VII to the original Interlocal Agreement provides for a total capacity of 3.3950 MGD, (up nearly 21% due to the City's increased capacity over several years). The potential capacity from Iron Bridge combined with the City's Water Reclamation Facility will be sufficient enough to not only provide adequate service to the complete utility service area, but will also allow for future growth and revitalization. Term: Unless terminated sooner as otherwise provided in the Amendment, the Amendment shall be in effect through and including March 31, 2037 ("Initial Term"). Thereafter, this Amendment shall automatically renew for additional five (5) year terms. The fees assessed for discharge to Iron Bridge are based on proportionate shares. The City's share in the facility is 8.49%, (down from 11.72% in previous years). The rate charged for treatment and transmission of the City's sewage will be based on five fee components: (1) operation and maintenance, (2) administrative costs, (3) high strength waste surcharge criteria, (4) hydraulic peaking, and (5) industrial cost recovery.