Interoffice Memorandum
DATE: August 20, 2024
TO: Mayor Jerry L. Demings and County Commissioners
THROUGH: N/A
FROM: Ed Torres, M.S., P. E., LEED AP, Director, Utilities
CONTACT: Andres Salcedo, P. E., Deputy Director, Utilities
PHONE: 407-254-9719
DIVISION: Fiscal and Operational Support Division
ACTION REQUESTED:
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Approval and execution of Interlocal Agreement (Orange County South Water Reclamation Facility Odor Control Project) by and between Orange County and Shingle Creek Transit and Utility Community Development District in the total payment obligation amount of $23,769,738. District 6. (Fiscal and Operational Support Division)
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PROJECT: N/A
PURPOSE: The South Water Reclamation Facility (SWRF) is the largest facility of its kind in Central Florida, with capacity to provide wastewater and reclaimed water service to a population of more than 500,000 people in south Orange County, including, among others, the I-Drive Activity Center, as well as other commercial activities on Sand Lake Road, the Tangelo Park Residential Community, and over 100,000 residences in south Orange County. Universal City Development Partners, Ltd. is developing the Epic Universe theme park immediately adjacent to SWRF and the theme park is currently under construction. On October 10, 2023, the Board approved the establishment of the Shingle Creek Transit and Utility Community Development District (CDD), which included an odor control project at the SWRF within its capital improvements program.
Orange County Utilities (OCU) capital improvements program includes over $24 million for an odor control project at the SWRF facility. The CDD desires to make additional system upgrades to SWRF to benefit the surrounding community with an additional budget of approximately $18 million. The County and the CDD recognize that by combining the components of the County’s improvements and the CDD’s improvements into a single odor control program (Odor Control Project), the SWRF odor control measures will be implemented more efficiently, cost effectively, and timely. This Interlocal Agreement provides the terms under which the CDD and the County will collaborate and share the cost of the Odor Control Project. The CDD will be responsible for the project oversight design and construction through a design-build contractor. OCU will own and operate the odor control facilities after construction is completed.
On May 2, 2024, a Temporary Access and License Agreement was entered into under the Major Economic Development Project Program that grants the CDD the necessary access to the SWRF and allowed the CDD to proceed at its own risk with the preliminary design and odor control measures associated with the Odor Control Project to meet the common goal of completing the project in 2025. In accordance with the Temporary Access and License Agreement, its original six-month term will now extend until the completion of the Odor Control Project and its acceptance by the County.
The Interlocal Agreement provides for the reimbursement of listed at-risk cost associated with purchases and contracts entered into or assigned to the CDD prior to the agreement execution, which were coordinated with County staff. The total estimated cost for the Odor Control Project is $41,733,860. The County’s portion of the Odor Control Project is $23,769,738, which includes $5,018,782 of contingency based on actual preliminary bids associated with design, equipment, materials, and construction contracts.
The County Attorney’s Office and Risk Management Division have reviewed the Agreement and find it acceptable as to form. Utilities Department staff recommends approval.
BUDGET: N/A