Issue Statement:  The Central Region Large User Wastewater Agreement was set to expire on December 31, 2021. The City of Fort Lauderdale sent an updated agreement for review by all Large Users, but comments and revisions were not fully completed and approved by December 31.  An amendment to extend the Agreement for 90 days (until March 31, 2022) was requested.  The extension was approved in December 2021.  The City of Fort Lauderdale has sent the updated agreement for approval by all large users.

Recommended Action:  Adopt a resolution approving the Large User Wastewater Agreement with the City of Fort Lauderdale.

Background: The City of Oakland Park has been part of the Broward County Central Region Large User Wastewater System since its creation in 1982. The Central Region is operated by the City of Fort Lauderdale. The Large User Agreement between the Cities of Fort Lauderdale and Oakland Park provides for payments and annual rate setting criteria for the operational, replacement and repair, and capital improvement funding as defined in a 20-year schedule.

The current Agreement expires March 31, 2022. The City of Fort Lauderdale supplied the Central Region Large Users with a new draft Agreement in October 2021. Large User parties include Oakland Park, Wilton Manors, and portions of Davie, Port Everglades and Lauderdale-by-the-Sea. Fort Lauderdale is also part of the Large User Agreement and operates the Central Region Wastewater System. The System includes wastewater treatment and regional pumping and conveyance systems.

Fort Lauderdale has completed a new Wastewater Large User Agreement. The new agreement is generally consistent with the previous agreement regarding operating and maintenance costs, capital improvements and rate setting. Some highlights of the agreement include:

• The new agreement is proposed to be a 20-year agreement versus the current 30-year agreement getting ready to expire. The agreement does allow for an extension for an additional 20 years.
  
• Rate setting is the same and fully supported by City staff. 
• Updates of the annual wastewater flow allocations for Oakland Park for the duration of the agreement.
• The new agreement continues to include potential financial penalties (surcharges) for exceeding hourly and daily flows. This is a continued incentive for the City to remain aggressive in the Inflow and Infiltration (I/I) reduction program. Reducing I/I will significantly reduce flows thereby reducing  costs.
• Continues the required annual 20-year replacement cost report to project out future capital costs.
• Adds language requiring an annual audit of the Central Region Fund.  Previously the Central Region Fund was included in Fort Lauderdale’s annual audit. This requirement will give the Fund a more thorough financial review.
• Adds language regarding notifications regarding violations by either City regarding wastewater flows and/or treatment.

This new agreement has no additional financial impact over that of the existing agreement.  Currently, Oakland Park pays the City of Fort Lauderdale approximately $4,500,000 annually for wastewater treatment and transmission for which funds are included in the annual operating budget of the Water and Sewer Fund. 

The City Commission adopt a resolution authorizing the proper City Officials to execute a new Wastewater Large User Agreement with the City of Fort Lauderdale.