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I
& II. Status of Miami River Federal Navigable Channel Maintenance
Dredging Project & Funding and Status of “Bank to Bank”
Maintenance Dredging Project & Funding –
Mr. Brodie Rich, United States Coast Guard (USCG) Bridge Branch, asked
MRC staff to make the following revisions to the Dredging Working Groups
July 19, 2006 meeting minutes: Page 4, Bullet 4: The NW 5th
Street Bridge will feature a 128-foot clear and unobstructed horizontal
clearance w/o fenders, 110-feet unobstructed horizontal clearance
between the fenders, and 150-foot horizontal clearance with spillways
for water conveyance; Mr. Rich added that the Army Corps of Engineers (ACOE),
rather than the Coast Guard Sector Miami, may require the USCG Bridge
Branch to require FDOT to remove their land in the federal navigable
channel as a portion of the USCG’s Bridge demolition and/or
construction permits. MRC
staff agreed to incorporate the aforementioned changes, and the Dredging
Working Group approved the revised July 19 meeting minutes.
Mr. Rene Perez,
Army Corps of Engineers (ACOE) Project Manager for the Miami River
Maintenance Dredging Project, stated the ACOE remains planning to award
acceptance section (AS) 7 of 15 in late September 2006, using the $3.5
million Fiscal Year (FY) ’06 federal appropriation.
Mr. Perez noted the contract provides 60 days to remobilize from
the award of the next acceptance section (late September to late
November), and recommence dredging in late November 2006, following the
hurricane season as requested by their contractors.
Mr. Perez noted the currently available FY ’06 federal cost
share is only sufficient to complete dredging within AS 7, and federal
FY ’07 commences
October 1, 2006
, when an additional $3.5 - $7 million may be appropriated by Congress
for the project, which is sufficient to dredge AS 8 of 15.
Mr. Perez noted the contractors estimate completion of one AS per
month, therefore under this scenario, the project would incur its second
of five allowable temporary demobilizations in January 2006, until any
additional federal cost share is potentially appropriated by Congress in
FY ’08, which commences on October 1, 2007.
Mr. Perez reported their contractor, (Weston Solutions and Bean
Environmental joint venture), recently requested the ACOE further
postpone awarding AS 7 until late March 2007, resulting in recommencing
dredging by late May 2007, in order to potentially capture FY ’06, FY
’07, and FY ‘08 federal appropriations to avoid an additional
temporary demobilization & remobilization by possibly avoiding any
potential future funding gaps. Mr.
Perez noted the ACOE dredging contract officer was checking regulations
which may impact the contractors request to delay awarding AS 7 until
late March 2006, and hadn’t made any decisions yet regarding the
request. Mr. Perez stated
the ACOE capability figure for the FY ’08 budget is $26 million, and
noted the dredging contract expires in April 2009, therefore FY ’07
($3.5 - $7 million) and FY ’08 are the last two opportunities to
secure the $26 million federal cost share balance due to complete the
project under the current contract.
Mr. Brett Bibeau,
MRC Managing Director, noted the Senate Energy and Water Bill’s $7
million line item for
Miami River
maintenance dredging is a single year record high for the project, and
thanked the Honorable Senators Nelson and
Martinez
for their continued support. In
addition, Mr. Bibeau thanked the City of
Miami
and
Miami-Dade
County
for including their respective cost share balances due to complete the
project in their draft FY ’07 budgets, which will be considered by the
City and
County
Commissions
in September 2006. Ms. Lucy
Perez, South Florida Water Management District (SFWMD), reported the
Florida Inland Navigation District (FIND), ranked the SFWMD’s
Miami River
maintenance dredging grant application as the top priority, resulting in
FIND awarding a $2.16 million grant, completing their pledged cost share
balance due to finish the project. The
Dredging subcommittee noted the final portions of the 31% local cost
share to complete the $80 million dollar Miami River maintenance
dredging project remains on track to be fully appropriated and available
no later than September 30, 2006.
Mr. Carlos
Espinosa, Director of the Miami-Dade County Department of Environmental
Resource Management (DERM), asked Mr. Perez whether the potential
postponement of awarding AS 7 after FY ’06 ends on
September 30, 2006
, would impact the currently available $3.5 million FY ’06
congressional appropriation for the project.
Mr. Perez replied if the currently available FY ’06 funding for
the project is not obligated by awarding AS 7 before the September 30
end of FY ’06, the funding may be subject to reprogramming to other
ACOE projects immaterial of the new rules, because the Miami River
dredging project is considered “operations and maintenance” versus
projects where public safety is at risk and lives at stake.
Mr. Espinosa
asked if the ACOE encumbered the FY ’06 appropriation via awarding AS
7 just before the
September 30, 2006
end of FY ’06, could they consider extending the 60 day timeline for
remobilization, because it is logical to postpone dredging in order to
tie in potential FY ’08 funding, in order to avoid additional
demobilization / remobilizations. Mr.
Perez noted since FY ’06 and FY ’07 federal appropriations would
only be sufficient for two months of dredging (AS 7-8), even if the
contractors request to postpone recommencing dredging to June 1, 2006,
the funding would be used by August 1, 2006 triggering the second
allowable temporary demobilization, several months before the potential
FY ’08 federal appropriation for the project may become available.
Mr. Perez added the $4.5 million federal appropriation for the
additional volume caused by Hurricane’s Katrina, Wilma, Rita ands
Ophelia will be expended throughout the remaining acceptance sections,
and can’t be used all at once. Mr.
Bibeau asked Mr. Perez how much of the $4.5 million hurricane
“supplemental” funding was used to remove the sunken vessels shown
in the pictures Mr. Perez provided during the Dredging subcommittee’s
July meeting, and Mr. Perez replied $100,000.
On behalf of
Weston Solutions, Mr. Mark Taylor noted the dredging contractors would
like to remobilize in order to complete as much of the remaining
dredging project as possible, without incurring additional temporary
demobilizations and remobilizations.
Mr. Taylor noted
the contractors therefore requested postponing awarding AS 7 until late
March 2007, in order to recommence dredging no earlier than
June 1, 2007
.
Mr. Buermann
asked Mr. Espinosa to provide a funding update of the project on behalf
of
Miami-Dade
County
, and Mr. Espinosa noted the County’s Budget Office is continuing to
explore providing local advanced funding, as well as investigate a
variety of funding options,
including seeking cost shares from the State of
Florida
, City of
Miami
, and FIND, for the local project sponsor to potentially provide a $26
million loan for the federal cost share balance due to complete the
project without additional temporary demobilizations and
remobilizations. Mr.
Espinosa noted all cost shares of the local project sponsor’s
potential loan of the federal cost share balance due would be repaid,
subject to future congressional appropriations.
Mr. Espinosa stated the County may seek a $13 million cost share
of the grand total $26 million loan from the State of Florida in FY
’07 (July 1, 2006 - June 31, 2007), in addition to the $800,000
difference between the County’s FY ’06 $4 million request and the
State’s $3.2 million FY ’06 appropriation.
Mr. Espinosa noted he had spoken to the new Miami City Manager
Pete Hernandez about participating in the potential local advanced
funding, whom seemed amenable to the possibility. Mr.
Espinosa stated the County would begin conducting high level meetings
with representatives of the additional local cost share partners to
discuss local advanced funding. Mr.
Espinosa added he had worked with the ACOE to determine the estimated
federal cost share balance due to complete the project is $26 million. Mr.
Bibeau explained the $26 million takes into account the lowest possible
level of FY ’07 funding, $3.5 million, yet if the FY ’07 Senate
Energy and Water Bill’s $7 million line item is approved in
conference, the estimated Federal cost share balance due to complete the
project becomes $22.5 million. The Dredging subcommittee noted if the
local advanced funding is made available by October 1, 2006; the project
would avoid any additional temporary demobilization / remobilizations,
and considering the estimated dredging rate of one acceptance section
per month, the remaining acceptance sections (AS 7-15) would be
completed by August 2007. The
Dredging subcommittee further noted the project’s benefits will not be
realized until dredging is completed to the mouth of the federal
navigable channel. Mr.
Buermann noted FY ’08 is the last fiscal year before the ACOE’s
5-year dredging contract expires, issuing a new contract would require
Congressional authorization, and any new contract would probably include
a significant increase to the price per cubic yard removed, set in the
current 2004 contract. Mr.
Espinosa stated everyone wants to complete the widely supported project,
and the $40 million spent thus far would be wasted if the project
isn’t completed. Mr.
Bibeau added the ACOE requested local private and public utility lines
crossing the Miami River be relocated to deeper depths beneath the
federal navigable channel, in anticipation of dredging, and relocating
the utilities has cost approximately $55 million thus far, which would
have been unnecessary if the dredging project is not completed.
Mr. Bibeau
provided the revised PowerPoint presentation to Mr. Espinosa and Ms.
Misty Brown, Miami-Dade County Intergovernmental Affairs, regarding the
project’s status, which incorporated the recommended revisions
discussed at previous Dredging subcommittee meetings. Mr.
Bibeau reported per the dredging subcommittee direction, the PowerPoint
presentation was used in recent individual briefings with the following
Honorable County Commissioners: Vice-Chair
Dennis Moss, Katy Sorenson, Jose “Pepe” Diaz, and staffs of
Commissioners Sallye Heyman, Carlos Gimenez, and Rebecca Seijas. Mr.
Bibeau noted Mr. Jose Fuentes, SFWMD, attended the briefings with
Commissioners Sorenson and Diaz. Mr.
Bibeau added the MRC scheduled a meeting with Commissioner Barbara
Jordan in September, and is attempting to schedule briefings with the
remaining
County
Commissioners
.
Mr. Bibeau
stated similar to the successful FY ’07 approach, the MRC recommended
project stakeholders write ACOE General Strock and Mr. Rob Portman,
Director of the President’s Office of Management and Budget (OMB), in
support of including the $26 million federal cost share balance due to
complete the project in their FY ’08 budget submittal to Congress,
which would increase the probability for Congress to appropriate the
amount. Mr. Bibeau noted the
ACOE is currently creating their FY ’08 budget recommendations, which
will be submitted to OMB early this fall.
Mr. Bibeau thanked everyone whom has already written the
recommended support letters, and distributed copies of the letters
including but not limited to: City and
County
Commissioners
, Greater Miami Chamber of Commerce (GMCC), South Florida Water
Management District (SFWMD), marine industrial businesses, Marine
Industries Association of South Florida, Marine Council, Miami River
Marine Group, and
Miami River
developers.
Mr. Bibeau
reported the MRC Executive Committee authorized his trip to
Washington
DC
on September 6-7, joining the GMCC advocacy group in support of
obtaining the federal cost share balance due to complete the project.
Mr. Bibeau added he planned to meet with representatives from the
ACOE and OMB during the September 6-7 trip to the Capital, in support of
including the estimated $26 million federal cost share balance due in
the Administration’s FY ’08 budget submittal.
Mr. Bibeau thanked Mr. Matt Leopold, Governor Bush’s Office of
Federal Intergovernmental Affairs, whom agreed to attend the meetings to
express the Governor’s continued support for the President to include
the $26 million Federal cost share balance due to complete the project
in the FY ’08 budget submittal. In
addition, Bibeau plans to meet with staff from the House and Senate
Energy and Water Committees, and Honorable Senators Nelson and
Martinez
, in support of obtaining their single year record high $7 million
congressional appropriation for the project during the FY ’07
conference. Mr. Bibeau
thanked the representatives of Miami-Dade County, the Greater Miami
Chamber of Commerce, and the MRC’s Federal Intergovernmental Affairs
consultant, Phil Bangert, Patton Boggs, whom will participate in the
upcoming DC meetings as well.
Mr. Bibeau asked
Mr. Espinosa for an update regarding the
County
Attorney
’s review of the local advanced funding Memorandum of Agreement (MOA),
which the ACOE originally provided the County for consideration prior to
the project’s first allowable temporary demobilization.
Mr. Bibeau noted the local advanced funding MOA guarantees the
federal cost share component of the provided local advanced funding will
be repaid, subject to continued future congressional appropriations.
Mr. Bibeau reported Congress has made multi-million dollar
appropriations for the project for the past 8 consecutive fiscal years,
adding up to over $31 million thus far.
Mr. Espinosa stated the County would further consider moving
forward with the potential local advanced funding MOA in September 2006,
after the Board of County Commissioners August recess. Mr.
Perez noted that if the Board of County Commissioners approves the MOA,
it would be transmitted to the ACOE for execution, before they would be
able to accept the funds to award dredging in future acceptance
sections.
III.
& IV. Update River Utility Crossings & Status of Removal of NW 5th
Street Bridge Prior to Dredging within that Acceptable Section - Ms.
Pat Hanson, ACOE, stated the ACOE continues to keep all private utility
companies and property owners on schedule in regards to water
lines/utility crossings. Mr.
Buermann asked if the rate at which the lines are relocated is
sufficient to allow the contractors to dredge without delays, and Ms.
Hanson replied yes, the utility relocation schedule is based on the
fastest potential timeline to complete the dredging project, without
factoring in any additional temporary demobilization and
remobilizations.
Mr. Rich asked
when the dredgers would arrive at the
NW 5th Street
Bridge, and Mr. Bibeau replied NW 5th Street Bridge is
located in AS 11, therefore the earliest case scenario would be
recommence dredging in late November 2006, at the estimated rate of
completing one acceptance section per month they would arrive in AS 11
is April 2007. Ms. Hanson
asked Mr. Jose Barrera, Florida Department of Transportation, if the NW
5 ST Bridge replacement project was fully funded, and Mr. Barrera
replied yes, there was a tight yet sufficient available budget to
complete the NW 5 ST Bridge project.
Mr. Barrera added the removal of the existing NW 5 ST Bridge is
scheduled for March 2007; therefore it would be removed before the
earliest possible date the Miami River Dredging contractors would arrive
in that vicinity. The MRC
dredging subcommittee thanked the FDOT.
Ms. Hanson
explained that the ACOE is unwilling to expend funds to dredge the FDOT
owned land and rock adjacent and beneath the
NW 5th Street
Bridge, because in part the volume is not included in the original
contract. Ms. Hanson stated
the ACOE will require the FDOT to remove their land improperly located
in the federal navigable, as a component of the ACOE’s permits
required for the FDOT’s replacement of the NW 5 ST Bridge.
Ms. Hanson noted the opportunity for the FDOT to contract
separately with the ACOE’s dredging contractors, which may lead to
FDOT cost savings because they would avoid the mobilization and
demobilization costs.
V.
New Business - Mr.
Bibeau distributed copies of the dredging project’s completed GMCC
2006-2007 Federal Legislative Proposal/Issue forms, which the MRC
submits annually in support of the local project sponsors Federal cost
share appropriation requests. Mr.
Bibeau thanked the GMCC for maintaining their “Priority” support for
completing the long awaited
Miami River
maintenance dredging project.
The Dredging
subcommittee confirmed the next regularly scheduled third Wednesday of
the month meeting for September 20, 2006, 10 am, 1407 NW 7 ST.
The meeting
adjourned.
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