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Florida Keys P E! FLORIDA KEYS AQUEDUCT AUTHORITY BOARD OF DIRECTORS’ MEETING Open to the Public Florida Keys Mosquito Control District 503 107th Street Marathon, Florida 33050 Wednesday, July 26, 2017 10:30 a.m. PUBLIC HEARINGS Presentation on Proposed Budget for Fiscal Year 2018 and Proposed Water Rate Increase REGULAR MEETING AGENDA INVOCATION PLEDGE OF ALLEGIANCE EMPLOYEE AWARDS Juan Lopez – 15 Years of Service Aaron Sipe – 10 Years of Service EMPLOYEE OF THE YEAR Natalie Allen RETIREMENT Mark Theobald APPROVAL OF MINUTES June 28, 2017 Board Meeting ADDITIONS/DELETIONS TO AGENDA ACCEPTANCE OF AGENDA Note: The Board of Directors does allow time for comments from the public, who have completed sign-in cards, on any Agenda Item or any specific areas of concern. Individuals will be allotted 3 minutes to make presentation. Representatives from established groups will be allotted 5 minutes to make presentation. FKAA Agenda – July 26, 2017 Page 2 CONSENT AGENDA ITEMS OFFICE OF COUNSEL 1. OOC – 01 Consideration to approve payment to Bryant, Miller & Olive for professional services rendered and expenses incurred for the month of May 2017 regarding defense of declaratory judgment, Delaney & Kulikowsky vs. Florida Keys Aqueduct Authority and Monroe County ($1,228.06 Monroe County) DIVISION OF UTILITY OPERATIONS 2. DUO – 01 Consideration to approve the abandonment of right-of-way described as a portion of Severino Drive in Islamorada, Florida as shown on Venetian Shores Plat No. 3 according to Plat thereof as recorded in Plat Book 5, Page 48 of the Public Records of Monroe County, Florida 3. DUO – 02 Consideration to approve the abandonment of right-of-way described as a portion of Laurel Avenue in Stock Island, Florida as described at Block 23 and Block 32, “all lots 1, 2, 3, 5, 6, Section 35; Lot 2, Section 36; Lot 3 Section 26; Lot 2, Section 34; Stock Island, Township 67 South, Range 25 East recorded in Plat Book 1, Page 55 of the Public Records of Monroe County, Florida REGULAR AGENDA ITEMS EXECUTIVE DEPARTMENT EO – 01 Executive Director’s Report DIVISION OF ADMINISTRATION DOA – 01 Summary of Financial Information for October 2016 through June 2017 DOA – 02 Summary of Contractual Commitments through June 30, 2017 DIVISION OF UTILITY OPERATIONS DUO – 01 Status Report on Cudjoe Regional Wastewater Project DUO – 02 Consideration to approve the purchase of AMI equipment for installation of Phase 1 data collectors from Sunstate Meter & Supply, Inc., SOLE SOURCE Neptune distributor (not to exceed $370,000.00) DUO – 03 Consideration to approve the award of IFB-0008-17 to HD Supply Waterworks for the purchase of a 4” C-900 pipe for water construction activities related to the Middle/Big Torch outreach area, FKAA Project #2331-17, by the FKAA Construction Crew (not to exceed $83,000.00) FKAA Agenda – July 26, 2017 Page 3 DUO – 04 Consideration to approve the award of Bid #IFB-00012-17 to Allied Trucking of Florida for the purchase of rock for water construction activities related to the Middle/Big Torch outreach area, FKAA Project #2331-17 (not to exceed $62,000.00) DUO – 05 Consideration to approve the award of Bid #IFB-FKAA-0010-17 to Airgas Specialty Products for a 1-Year Contract – Anhydrous Ammonia for use at the J. Robert Dean Water Treatment Plant ($71,040.00) DUO – 06 Consideration to approve Contract Amendment 11 for Mathews Consulting to provide Engineer-of-Record and inspection services for the Cudjoe Regional Wastewater Collection System (not to exceed $50,000.00 Monroe County) DUO – 07 Consideration of recommendation to proceed with construction of a new seawater treatment system on Stock Island, pending budget approval BOARD OF DIRECTORS BOD – 01 Board of Directors Discussion BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY AGENDA ITEM: DOA- TAB: CONSENT: D REGULAR: D MEETING DATE: July 26, 2017 D1v 1s 10 N: Administration AGENDA TITLE: Public Hearing #2 for proposed 2018 Budget. ITEM BACKGROUND: Three Public Hearings are required prior to Budget adoption in August 2017. PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: STAFF RECOMMENDATION (MOTION): SUPPLEMENTAL INFORMATION: Proposed 2018 Budget document attached. DOCUMENTATION: Included: D To-Follow: D Not Required: D Cost to FKAA: $ _____ BUDGETED: Yes D No D Cost to Others: $ _____ Total Cost: $ _____ DEPARTMENT: DEPARTMENT MANAGER APPROVAL: Digitally signed by Kerry Kerry Shelby ~~~~~~01701.111s,2301 DIVISION DEPUTY EXECUTIVE DIRECT'if:'PROVAL: - -Moo Revie\Ned by: Internal Auditor: ' General Counsel: QT r Executive Director:~ BOARD ACTION: Approved: Tabled: Disapproved: 1 Recommendation Revised: , Comments: _____________________ __________ Date: ___________ Recording Clerk: _ _ _ _ _________ Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Prepared by Kerry G. Shelby Deputy Executive Director and Chief Financial Officer Assisted by The Department of Finance 1100 Kennedy Drive Key West, FL 33040 Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview 2 | P a g e Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview FLORIDA KEYS AQUEDUCT AUTHORITY TABLE OF CONTENTS INTRODUCTORY AND OVERVIEW 3 Table of Contents 5 Board of Directors 6 Message from the Executive Director 7 Vision, Mission, Values and Guiding Principals 8 Strategic Goals, Initiatives and Implementation Strategies 9 Other Planning Processes and their Impact on the Budget 10 Profile of the Florida Keys 12 Demographic and Economic Information 19 System Overview 20 Profile of the Authority 27 Budget Highlights, Issues and Priorities 29 How Each Dollar of the 2018 Budget Will Be Spent FINANCIAL STRUCTURE, POLICY AND PROCESS 32 Organization Chart 33 Contact Information 34 Financial Policies that Impact the Budget 37 Budget Process FINANCIAL SUMMARIES 42 Summary of Budgeted Sources and Uses 43 Summary of Revenue Sources 44 Rate Structure 46 Operating Expenditure Budget by Expenditure Type Five Year Financial Plan 47 Projected Changes in Net Position 47 Projected Sources and Uses of Funds 48 Projected Revenue and Contributions 49 Five Year Capital Improvement and Capital Financing Plan 50 Projected New Debt Issues and Debt Service 51 Projected Debt Service Coverage 52 Estimated Rate Adjustments and Average Monthly Bill 3 | P a g e Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview CAPITAL AND DEBT 56 Capital Improvement Budget 57 Project Summaries 76 Capital Outlay Budget Detail 80 Capital Financing Plan Summary 82 Debt Service Requirements 82 Summary of Outstanding Principal of Long Term Debt 82 Summary of Debt Service 83 Debt Service Coverage Analysis DEPARTMENTAL INFORMATION 86 Executive Division Summary 88 Administration Division Summary 89 Customer Service Department Summary 92 Finance Department Summary 96 Human Resources Department Summary 100 Information Technology Department Summary 104 Utilities Operations Division Summary 105 Engineering Department Summary 108 Operations Department Summary 112 Position and Fleet Summary 113 Operating Expenditure Budget by Functional Unit GLOSSARY 116 Glossary of Terms and Acronyms 4 | P a g e Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview FLORIDA KEYS AQUEDUCT AUTHORITY 2018 BOARD OF DIRECTORS J. ROBERT DEAN CHAIRMAN District 3- Current term expires December 31, 2016 Owner and Director, Dean-Lopez Funeral Home RICHARD J. TOPPINO VICE CHAIRMAN District 2- Current term expires December 31, 2018 Treasurer, Charley Toppino & Sons, Inc. Vice President, Monroe Concrete Products, Inc. DAVID C. RITZ SECRETARY/ TREASURER District 5- Current term expires December 31, 2016 President, Ocean Reef Community Association ANTOINETTE M. APPELL BOARD MEMBER District 4- Current term expires December 31, 2016 Highly Qualified Paraprofessional with the Monroe County School District CARA HIGGINS BOARD MEMBER District 1- Current term expires December 31, 2018 Partner Horan & Higgins LLP 5 | P a g e Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview MESSAGE FROM THE EXECUTIVE DIRECTOR KIRK ZUELCH On behalf of the Board of Directors and staff of the Florida Keys Aqueduct Authority, we are pleased to present our annual budget for the fiscal year ending September 30, 2018, as adopted by the Board of Directors on August 23, 2017, and the related five-year financial plan and capital financing plan. The document is organized into five main sections. First is an introductory overview of the organization followed by a summary of our financial structure, policies and budget process. The next three sections provide financial summaries, the capital budget and debt and a detailed discussion of the operating budgets for each of our departments. This budget will remain in effect through September 30, 2018 and may only be amended through specific action of the Board. In accordance with our enabling legislation, actual expenditures for the fiscal year may not exceed the final budgeted expenditures as amended. Operating revenue is budgeted higher than the current year due mainly to the addition of new wastewater customers being served by the new Cudjoe Regional Wastewater System and a projected 5% water rate increase to fund debt service on new bonds that will be issued to fund the reverse osmosis
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