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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. Rene Perez, Army Corps of Engineers (ACOE), requested MRC staff revise page 1 of the April 18, 2007 meeting minutes as followed: “Mr. Espinosa added the draft “Contributed Funds Agreement,” which would allow the locals to provide funding on behalf of the federal cost-share balance due, with no guarantee of repayment, was being reviewed by the County’s Law Department.” The GSC approved the revised minutes.

Mr. Perez noted the ACOE received the Florida Department of Environmental Protection’s executed modified and extended water quality certificate for the Miami River maintenance dredging project on May 15.  Mr. Perez stated he expected the ACOE contracting division to award dredging in the projects acceptance sections 7 & 8, using the currently available $7 million federal cost share, which consists of the remaining $3.5 million appropriation from Fiscal Year (FY) 2006 and the $3.5 million included in the FY ’07 CR.  Chair Buermann asked if the project was in any danger of losing any federal dollars previously appropriated, and Mr. Perez replied no.

Mr. Perez stated the ACOE’s Jacksonville District sent the Board of County Commissioners approved “Local Advance Funding (LAF) Agreement” to the South Atlantic Division, which forwarded it to ACOE Headquarters in DC.  Mr. Perez stated he had provided two rounds of additional information requested by ACOE Headquarters related to the LAF, and believes they have all of the information necessary to approve the agreement.  Mr. Kelly noted he believed the LAF had already been forwarded to the Assistant Secretary of the Army (ASA) Woodley for final signature.  Mr. Kelly added the Senate & House were expecting to receive the required ACOE’s notification of the LAF agreement before the next AS is awarded.  Mr. Perez noted it is not his understanding that the LAF had been approved and forwarded to ASA Woodley yet, and clarified that on May 8 the ACOE provided the required notification regarding the LAF to Congress. 

Mr. Bibeau asked if the DSC April 2007 minutes had accurately reflected the LAF agreement approval process.  Mr. Perez agreed, restating the ACOE’s Jacksonville District sent the agreement to the South Atlantic Division, which forwarded it to ACOE Headquarters in DC for approval, followed by transmittal to the County for the Mayor’s signature, and subsequently returning the signed agreement for Assistant Secretary of the Army (ASA) Woodley’s final signature, before the proffered previously appropriated local cost share may be spent faster than the pledged federal cost share balance due to complete the project.   Mr. Bibeau asked for the estimated timeline for the County to approve the agreement, and Mr. Espinosa stated the agreement will be presented to a Board of County Commissioners subcommittee in June, followed by the full Board in July.  Mr. Bibeau suggested all the project’s partners encourage the ACOE to expedite the process of executing the LAF Agreement, followed by the Contributing Funding Agreement, which is the only means to use the this additional currently appropriated local funding to continue dredging beyond AS 8, and hopefully avoid a costly potential second temporary demobilization in October.

Mr. Carlos Espinosa , Director of the Miami-Dade County Department of Environmental Resource Management (DERM), stated the FL legislature recently appropriated $5 million towards the federal cost share balance due, and an additional $800,000 to complete the State’s originally pledged local cost share for the project.  Mr. Espinosa suggested the South Florida Water Management District administer this $5.8 million in ST appropriations for the project, because they are accessible at the local level and attend the MRC meetings.  Mr. Evan Skornick , SFWMD, replied that the ST’s previous appropriations for the project have been administered by the Florida Department of Environmental Protection (FDEP), but agreed to look into that possibility.  Mr. Buermann stated if DERM would like the SFWMD to administer the new ST $5.8 million appropriation, and it is in the best interest of the project, then the SFWMD should accept that responsibility.  Mr. Perez noted the “Contributed Funds Agreement” will also be forwarded to ACOE HQ and ASA Woodley for approval in a similar fashion to the process followed by the “Local Advanced Funding Agreement”.

Mr. Bibeau asked Mr. Skornick for the status of the Florida Inland Navigation District (FIND) grants.  Mr. Skornick provided the following update:

• Fiscal Year 2005 FIND grant – In September 2006 FIND approved their one allowable one-year extension, which expires in September 2007 and there is nothing we can do about this regulation, therefore if the FY ’05 FIND grant funding is not encumbered via their receipt of a funding demand letter by September 1, 2007, the funding will no longer be available for this project.  The FY ’05 FIND grant funding will provide a cost share through AS 8. 
• Fiscal Year 2006 FIND grant – expires in October 2007, therefore in July 2007 the SFWMD will request the following two amendments to the existing contract:
1. the one allowable one year extension from FIND, which would make the new final expiration October 2008
2. allowing the FIND funding to be expended via the Local Advanced Funding (LAF) Agreement ahead of the federal cost share balance due
• Fiscal Year 2007 FIND grant - expires in October 2008.  In July 2007 the SFWMD will request the following two amendments to the existing contract:
1. the one allowable one year extension from FIND, which would make the new final expiration October 2009
2. allowing the FIND funding to be expended via the Local Advanced Funding (LAF) Agreement ahead of the federal cost share balance due

Mr. Bibeau distributed the MRC DSC’s updated Miami River maintenance dredging project funding summary, and DERM’s “Miami River Dredging project – Cost sharing projections 2006” spreadsheet.  Mr. Perez stated that $1.8 million of the $4.5 million appropriated for the project in the FY ’05 supplemental bill will be used towards the federal cost share to award AS 7 & 8.  Mr. Bibeau noted if the remaining $2.7 million is spent evenly between the remaining 9 acceptance sections, an estimated $385,714 would be available per section, rather than the $500,000 calculated on the provided summary, due to the ACOE using $1.8 million of the $4.5 million supplemental appropriation towards Acceptance Sections 7 & 8.  Mr. Bibeau noted the grand total currently appropriated and unexpended funding for the project is over $31 million. The MRC DSC concurred the currently appropriated $31 million plus an estimated $6 million federal FY ’08 appropriation, would provide sufficient funding to dredge acceptance section 7-12 of 15.  Mr. Perez clarified that the final demobilization line item ($1.13 million) was already encumbered.  Mr. Bibeau therefore noted the MRC DSC dredging funding summary should be further revised by reducing what the expected federal cost share balance due to complete the project would be upon reaching Acceptance Section 12 becomes $9 million to dredge the final three acceptance sections (AS 13-15).

Mr. Bibeau thanked the FL Legislature for their recent $5.8 million in appropriations for the project, including the sponsors, Honorable Representative David Rivera and Honorable Senator Alex Diaz de La Portilla.  Mr. Bibeau thanked the Greater Miami Chamber of Commerce for including the Miami River maintenance dredging project as one of their priority goals for years.  Mr. Bibeau added as in previous years he would be participating in the 2007 Greater Miami Chamber of Commerce Goals Conference, which will be held on Friday, June 1, 2007-Saturday , June 2, 2007 , Biltmore Hotel, Coral Gables . Mr. Bibeau noted he had registered for the June 1 “Double Session: The Advocacy Group-Local, State, Federal & Global Issues,” as well as the Saturday, June 2 “ New World Center (Downtown Miami)” & “Transportation, Infrastructure & Regionalism” workshops to recommend the GMCC maintain their strong support for the project.

Mr. Bibeau noted MRC staff has recently launched its annual Miami River Dredging support letter campaign.  Mr. Bibeau noted draft dredging support letters respectfully requesting the federal cost-share balance due, addressed to the Honorable Senator Nelson, Honorable Senator Martinez, Honorable Senate Energy and Water Chair and Ranking Members Reid and Dominici, Honorable House Energy and Water Chair and Ranking Members Visclosky and Hobson, Honorable Rep. Ros-Lehtinen, Honorable Rep. Debbie Wasserman Schultz, Honorable Rep. Kendrick Meek, Honorable Rep. Mario Diaz Balart, Honorable Rep. Lincoln Diaz-Balart, General Strock and OMB Director Portman, were provided to staff of the County Commissioners, City Commissioners, marine industrial businesses and GMCC.  Mr. Bibeau thanked Dr. Fran Bohnsack, Miami River Marine Group, Miami-Dade County Commissioner Carlos Gimenez and Miami City Commissioner Joe Sanchez for quickly mailing their river dredging support letters to the aforementioned parties.

Chair Eric Buermann asked if the support letter campaign for the dredging project is a worthwhile effort on behalf of the MRC, and Mr. Sean McGraw, Weston Solutions, noted he believed the letter writing creates visibility and awareness for the project. Mr. Pat Kelly, Weston Solutions, confirmed their effectiveness.

III. Update River Utility Crossings – The dredging subcommittee noted the ACOE’s request for utilities to be relocated deeper beneath the federal navigable channel in preparation for dredging is continuing on schedule.      

IV. Status of Removal of NW 5^th Street Bridge Prior to Dredging within that Acceptance Section – Mr. Bibeau noted Mr. Orin Black , Marilyn Properties (owner of parcels immediately north and south of the NW 5 ST Bridge’s west side), was unable to attend today’s dredging meeting, but sent an e-mail expressing gratitude to the County for issuing his shoreline permit so that at his cost he may reconstruct the seawall, removing the portion  located in the federal navigable channel, before dredging arrives in that section of the river.   Mr. Bibeau noted Mr. Black is expecting to receive final executed permits from DERM this week, and will then go to the City for approval, since they own a small portion of the area which will be removed from the federal navigable channel during the project.  Mr. Bibeau added Mr. Black hopes to begin work in about 2 months.

Mr. Bibeau thanked the Florida Department of Transportation (FDOT) for removing the spans of the NW 5^th Street Bridge prior to dredging.  Mr. Bibeau stated the project seems to be removing a significant portion of the FDOT land built in the federal navigable channel as well.

V. New Business – Mr. Pat Kelly, Weston Solutions, expressed dissatisfaction with the costly procedure involved with demobilization, and therefore preferred to remobilize only one last time to complete the dredging project.  Mr. Kelly noted the Joint-Venture has submitted a request to the ACOE to request an increase to the total contract costs, due to increased sediments/rock found in AS 1-6.  Mr. Kelly stated although their contract expires in April 2009 (7 months into FY ’09), there is a clause in the contract requiring no awards of additional Acceptance Sections later than the last day of FY ’08, September 30, 2008.  Therefore, FY ’08 is the last opportunity to secure the $26 million federal cost share balance due to complete the project.  Kelly stated since the President only budgeted $4.5 million for the project in FY ’08, a best case scenario congressional appropriation would be an estimated $6 million.  Mr. Kelly estimated if remobilized now, they would complete dredging AS 7-12 by May 2008 and since all the available funding would be expended, they would incur their second demobilization, and since no further federal fiscal years would be available, the contract would then expire prior to the remobilization to dredge the final three acceptance sections.  Mr. Kelly added the JV venture contract expires on September 30, 2008 , and can not be extended due to the prohibition on continuing contracts found in section 108 of the 2006 appropriations act.  Therefore, Mr. Kelly stated the only remaining option to complete the project without a contract amendment would be for the State, County, FIND, SFWMD, and or City to collectively appropriate the grand total $9-12 million federal cost share balance due in their respective upcoming budgets, prior to September 30, 2008, when the ACOE is not allowed under their contract to award further acceptance sections.

Mr. Kelly stated a modification to the contract would be considered only if it was agreed that the JV would remobilize only one last time. Mr. Kelly recommended ending the contract on May 1, 2008 until the remaining federal dollars have been received.  Mr. Buermann asked if the time extension would include an increased cost per cubic yard dredged from the river, and Mr. Kelly replied the time extension amendment to their existing contract may also include an increased cost per cubic yard removed. 

Though he expressed sympathy for the contractor’s situation, Chair Buermann stated that the MRC must operate under the best interests of completing the project and the tax payers.  The DSC members noted the contract is with the ACOE, which is the only agency with the authority to decide when to remobilize their dredging contractors.  Furthermore, the DSC noted as reported earlier in the meeting, millions in FIND grant awards would be jeopardized if the project remains demobilized.  Chair Buermann noted the DSC will continue working together to obtain the remaining cost-share balance due to complete the project before the current contract expires in April 2009, which would result in further delays, and any new contract would most likely include an increased price per cubic yard dredged than the existing price, which was set when the current contract was executed in 2004.  Futhermore, dredging AS 1-6 produced leftover funding, which is anticipated as dredging continues.  Mr. Buermann stated the MRC and locals recognize that Mr. Kelly’s estimation that Congress will be unable to appropriate their entire $26 million in this contract’s final FY ’08 cycle is accurate.  Therefore, Mr. Buermann noted for over a year the locals have been working towards providing the federal cost share balance due to complete the project under the current contract, without any guarantee of future federal appropriations after the project is done to repay this additional local cost share.  This effort will hopefully avoid further demobilizations, in order to save tax payer funding by completing the project at the lowest cost possible, rather than incurring additional unnecessary demobilization costs, delays, and potentially contract cost increases per cubic yard removed.

Mr. Bibeau asked for the County’s status in applying for the federal grant opportunities for the project identified by the MRC, and Mr. Espinosa stated he would provide a status on the County’s applications to the federal grants during the June MRC DSC meeting.  Mr. Bibeau distributed a Miami Today article entitled “State contributes $5 million for river dredging.”

The Dredging subcommittee confirmed the next meeting for June 22, 2007 , 10 am , since Mr. Bibeau will be out of town during the regularly scheduled third Wednesday of the month meeting.

The meeting adjourned.

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