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

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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

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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

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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

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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 plant expansion on Stock Island. Rates will also be adjusted by the annual inflation index. Water volume sales are also projected to minimally increase over current year levels. Operating expenses are budgeted slightly higher than the current year due mainly to the additional costs of operating the new wastewater system. Capital projects are focused on critical resiliency projects that strengthen the systems and increases reliability. Water projects are budgeted to be funded through reserves and an anticipated $50 million water bond issue. Wastewater projects will be funded by operating revenue and state appropriations.

Specific budget priorities and economic factors affecting the budget can be found in the introduction and overview section. Further information about the Authority can be found at our website, www.fkaa.com, or may be obtained by calling our contact center at (305) 296-2454.

We take pride in providing reliable water and wastewater services to the residents of and visitors to the Florida Keys in the most cost effective manner while providing quality workmanship and customer service. This budget was developed to support that mission.

Respectfully submitted,

Kirk Zuelch Executive Director

August 31, 2017

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

VISION, MISSION, VALUES AND GUIDING PRINCIPLES FOR FISCAL YEAR 2018

Vision Customer Satisfaction: We provide reliable, The Florida Keys Aqueduct Authority will be recognized responsive, and affordable services in line with our nationally as a leader in the provision of safe, reliable customer expectations. We value their opinions and water and wastewater services by seamlessly suggestions. integrating advanced technology to enhance the customer experience and maximize efficiencies while leading as well in environmental awareness and Product Quality: We produce safe, high quality potable resource protection. water and treated wastewater effluent in full compliance with regulatory and reliability Mission requirements and consistent with customer, public health, and ecological needs. The Florida Keys Aqueduct Authority is a nationally renowned and community oriented publicly owned utility that provides reliable, safe and efficient water and wastewater services in a fiscally and environmentally responsible manner with a highly trained, professional, and dedicated team of employees.

Values

To achieve our mission, the Authority is committed to the following values: ▪ Customer satisfaction ▪ Excellent water quality ▪ Community involvement ▪ Strong working relationships with Operational Optimization: We ensure ongoing, timely, municipal, county, state and federal cost-effective, reliable, and sustainable performance government agencies improvements in all facets of our operation. ▪ Employee development, communication and career growth Financial Viability: We understand the full life-cycle ▪ Well maintained, reliable and secure costs of the utility and maintain an effective balance systems between long-term debt, asset values, operations and maintenance expenditures, and operating revenues. We establish predictable rates that are equitable and Guiding Principles consistent with community expectations and In providing the highest quality water services to our acceptability, adequate to recover costs, provide for customers, we embrace the following ten attributes of reserves, maintain support from bond rating agencies, effectively managed water sector utilities as our and plan and invest for future needs. guiding principles.

▪ Cost effective services ▪ Protection of environmental resources ▪ Financial stability

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

VISION, MISSION, VALUES AND GUIDING PRINCIPLES- CONTINUED FOR FISCAL YEAR 2018

Infrastructure Stability: We maintain and enhance the vitality; and engender overall community involvement condition of all assets over the long-term at the lowest and improvement. possible life-cycle cost and acceptable risk consistent with customer, community, and regulator-supported Water Resource Adequacy: We ensure water service levels, and consistent with anticipated growth availability through long-term water supply and and system reliability goals. demand analysis, conservation, agency interaction, and public education. Employee and Leadership Development: We recruit and retain a workforce team that is competent, Stakeholder Understanding and Support: We actively motivated, adaptive, and safe-working. We encourage involve stakeholders in the decisions that will affect a participatory, collaborative organization culture them. We garner understanding and support from dedicated to continual learning and improvement. We community interests for service levels, rate structures, emphasize opportunities for professional and operating budgets, capital improvement programs and leadership development and strive to maintain an risk management decisions. integrated and well-coordinated senior leadership team. Strategic Goals, Initiatives and

Implementation Strategies

Our strategic goals define what we seek to accomplish to fulfill FKAA’s vision. They reflect the unique challenges that FKAA faces as provider of water services for the Florida Keys. These goals simultaneously address infrastructure needs, opportunities to enhance customer services, and responsibilities for stewardship of our environmental resources:

A. Develop a sustainable utility and related infrastructure B. Proactive public outreach and superior customer service Operational Resiliency: We ensure our leadership and C. Enhance employee communication staff work together to anticipate and avoid problems. and development We proactively identify, assess, establish tolerance D. Financial optimization levels for, and effectively manage a full range of E. Maximize energy efficiency business risks including legal, regulatory, financial, F. Optimize utility operations and environmental, safety, security, and natural disaster treatment related. Our approach to accomplishing these goals is framed Community Sustainability: Manage operations, by the institutional and legal position as a Special infrastructure, and investments to protect, restore, District of the State of Florida. and enhance the natural environment. We efficiently use water and energy resources; promote economic

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

OTHER PLANNING PROCESSES AND THEIR IMPACT ON THE BUDGET FOR FISCAL YEAR 2018

Type of Planning Budget Impacts Process Description of Process

Long range (3 to 10 years) Strategic goals, initiatives and Provides direction for allocation of Strategic Planning with objectives established implementation strategies are resources to meet predetermined for budget year reviewed with the Board as part of strategic goals and objectives the budget process and updated accordingly

Five-year operating plan to Finance staff works with all Provides for budget stability, planning and Financial Forecasting facilitate financial planning departments to determine key direction for future resource allocation forecast assumptions to project decision making major revenue sources and expenditures

Twenty-year plan includes Staff evaluates capital needs on an Provides for predicable funding level from Capital Improvement project listing by plan year ongoing basis and adjusts the plan year to year to allow adequate planning as needed for debt service requirements and Master Plan operating costs of new facilities and infrastructure improvements

Multi-year plan to replace Initiatives and technology gaps Allows for the funding of software and Information certain software identified in the plan have been equipment replacements, maintenance, applications and computer prioritized by year based on needs helpdesk support and network Technology Master equipment assessment with adjustments infrastructure replacement annually at Plan made as necessary established levels. Replacement decisions are determined considering changing software technology, economic issues, maintenance costs and downtime

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

PROFILE OF THE FLORIDA KEYS FOR FISCAL YEAR 2018

The Florida Keys are a chain- like cluster of about 1,700 islands in the southeast United States. They begin at the southeastern tip of the Florida peninsula, about 15 miles south of Miami, and extend in a gentle arc south to southwest to Key West, the southernmost city in the contiguous United States. The islands lie along the Florida Straits, dividing the Atlantic Ocean to the east from the Gulf of Mexico to the west, and defining one edge of Florida Bay. At the nearest point, the southern tip of Key West is just 89 miles from Cuba. The total land area is approximately 137 square miles and the county-wide population is about 73,000. Much of the population is concentrated in a few areas of much higher density, such as the city of Key West, which has 32% of the entire population of the Keys.

Early History

The Keys were originally inhabited by the Tequesta Native Americans and were later found and charted by Juan Ponce de Leon. “Key” is corrupted from the Spanish cayo, meaning small island. For many years, Key West was the largest town in Florida, and it grew prosperous from sponging, cigar making and salvaging ships that wrecked on the nearby reef. The isolated outpost was well located for trade with Cuba and the Bahamas, and was on the main trade route from New Orleans. Improved navigation led to new trade routes and fewer shipwrecks, and spongers and cigar-makers moved to other parts of Florida, leaving Key West in decline by the Great Depression. The economy rebounded with an expanded Navy presence and increased tourism in the years that followed.

Overseas Railway

The Keys were once accessible only by water. This changed with the completion of Henry Flagler's Overseas Railway in the early 1900s. Flagler, a major developer of Florida's Atlantic coast, extended his Florida East Coast Railway down to Key West with an ambitious series of over-sea railroad trestles. The Labor Day hurricane of 1935 ended the 23-year run of the Overseas Railway. The damaged tracks were never rebuilt, and the Overseas Highway replaced the railroad as the main transportation route from Miami to Key West.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

PROFILE OF THE FLORIDA KEYS-CONTINUED FOR FISCAL YEAR 2018

Seven Mile Bridge

One of the longest bridges in the country when it was built, the Seven Mile Bridge connects Knight’s Key (part of the city of Marathon in the Middle Keys) to Little Duck Key in the Lower Keys. The water transmission line is housed inside this bridge and crosses 42 other bridges before ending in Key West.

Natural Environment and Geology

The Keys are in the subtropics between 24 and 25 degrees’ north latitude. The climate and environment are closer to that of the Caribbean than the rest of Florida, though unlike the Caribbean’s volcanic islands, the Keys were built by plants and animals.

The Upper Keys islands are remnants of large coral reefs, which became fossilized and exposed as sea levels declined. The Lower Keys are composed of sandy-type accumulations of limestone grains produced by plants and marine organisms.

The natural habitats of the Keys are upland forests, inland wetlands and shoreline zones. Soil ranges from sand to marl to rich, decomposed leaf litter. In some places, “cap-rock” (the eroded surface of coral formations) covers the ground. Rain falling through leaf debris becomes acidic and dissolves holes in the limestone, where soil accumulates and trees root.

The climate is classified as tropical, and the Keys are the only frost-free place in Florida. There are two main seasons, hot, wet, and humid from about June through October, and somewhat drier and cooler weather from November through May. Many plants grow slowly or go dormant in the dry season. Some native trees are deciduous, and drop their leaves in the winter or with spring winds.

The Keys have distinctive plant and animal species, some found nowhere else in America, as the Keys define the northern extent of their ranges. The native flora of the Keys is diverse, including both temperate families, such as maple, pine and oak, growing at the southern end of their ranges, and tropical families, including mahogany, gumbo limbo, stoppers, Jamaican dogwood, and many others which grow only as far north as 25 or 26 degrees north latitude.

The Keys are also home to unique animal species, including the Key deer, protected by the National Key Deer Refuge, and the American crocodile. The waters surrounding the Keys are part of a protected area known as the Florida Keys National Marine Sanctuary.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

DEMOGRAPHIC AND ECONOMIC INFORMATION FOR FISCAL YEAR 2018

The information presented in the budget is best understood when it is considered from the broader perspective of the specific environment within which the Authority operates. The demographics presented here are the latest data available at the time of publication of this document.

Local Economy and Demand Trends

The primary industries in the Authority’s service area are related to tourism. Other industries include military operations and commercial fishing. Many residents are in the service area for only part of the year. The permanent year-round population of Monroe County is approximately 73,000 residents. The average functional population, defined as the sum of the permanent population and the peak seasonal population estimated by the Monroe County Growth Management Division to be approximately 155,000. Due to this difference in population, the Authority experiences monthly fluctuations in water consumption and wastewater flows depending on seasonal demands

Estimated Population

Males-41,065 Population-76,047 Female-36,416 53% 2016 47%

Resident Population, 76,047

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

DEMOGRAPHIC AND ECONOMIC INFORMATION-CONTINUED FOR FISCAL YEAR 2018

ESTIMATED POPULATION BY AGE

Total % of the Population

0-19 Years 13,172 17% 20-34 Years 13,172 17% 35-44 Years 10,072 13% 45 and over 41,065 53% Source: Key West Chamber of Commerce

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

DEMOGRAPHIC AND ECONOMIC INFORMATION-CONTINUED FOR FISCAL YEAR 2018

SOCIAL, ECONOMIC AND HOUSING CHARACTISTCS-2009-2016

Median age (years) Average household size Total visitors to the Median household 41.7 2.53 Keys in 2015 income $57,042 5,466,937 Per capita $34,020

Persons below the Total housing units Mean travel time to poverty level 52,913 work (minutes) 12.10% Median Single Family 18.80 Home Value $509,000

Fun Facts about the Florida Keys

o The Florida reef is one of the world’s largest reefs and it is 160 miles long. o Key West’s earlier Spanish name was Cayo Hueso. o Cuba is 90 miles from Key West (Miami is 164 miles away!) o Key Largo was mentioned in a famous song by the Beach Boys o The Queen Conch is a protected marine species and it is prohibited to catch o The Florida Keys are highly biodiverse due to the coral reefs and tropical climate o After 5 attempts Diana Nyad, 64, set a world record after swimming from Havana to Key West. She was the first person to do it without a shark cage.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

DEMOGRAPHIC AND ECONOMIC INFORMATION-CONTINUED FOR FISCAL YEAR 2018

Affiliation Monroe County Key West Democratic 17,166 6,699 Republican 20,181 3,514 Other 14,931 4,516 Totals 52,278 14,729 Source: www.keyselections.org/keywestchamberofcommerce

AVERAGE MONTHLY TEMPERATURES

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

DEMOGRAPHIC AND ECONOMIC INFORMATION-CONTINUED FOR FISCAL YEAR 2018

AVERAGE ANNUAL RAINFALL

ACTUAL ANNUAL RAINFALL

Key West International Miami International Airport Airport 2016 40.88 75.00 2015 38.92 47.22 2014 33.94 73.65 2013 44.43 60.58 2012 60.58 97.87 2011 35.07 50.56 2010 41.47 68.56 2009 32.40 51.14 2008 36.52 63.59 2007 36.54 59.27 Source: National Weather Service & Southeast Regional Climate Control

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

DEMOGRAPHIC AND ECONOMIC INFORMATION-CONTINUED FOR FISCAL YEAR 2018

WATER AVAILABILITY AND SALES

The Authority is permitted by the South Florida Water Management District (SFWMD) to withdraw its supply of water from the Biscayne Aquifer at the Authority’s well field in Florida City. The Authority’s water use permit was approved for a twenty-year term in 2008, allowing the Authority to withdraw an annual daily average of 17.79 million gallons per day (mgd) from the Biscayne Aquifer. The permit also allows for the Authority to withdraw up to 8 mgd from the brackish Floridian Aquifer for treatment through reverse osmosis. This withdrawal should support an additional 6 mgd of treated water supply.

Due to severe drought conditions that occur in South Florida from time to time, mandatory water use restrictions are now being imposed by the SFWMD. With permanent restrictions in place, reduced consumption level has remained consistent and is considered the “new normal” for budgeting purposes. As the economy improved in recent years, water use trended upward slightly.

The U.S. Navy remains the Authority’s largest water customer. The Navy’s presence in the lower keys and Key West remains strong due in part to the large amount of unrestricted air space available for pilot training. Hotels, resorts and government make up most of the Authority’s other top ten customers. Economic conditions have worsened, tourism and tourism-related development are slowing and hotels and resorts are using less water.

WORKFORCE ISSUES

The Authority’s linear geography requires sufficient staff in all areas to respond to operational and customer needs. This makes staff levels and staffing costs higher than in a centrally located system. Service personnel and customer service offices are maintained in three areas of the Keys in addition to the Authority’s administrative headquarters in Key West (southern end of the system) and its water treatment plant in Florida City (northern end of the system).

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

DEMOGRAPHIC AND ECONOMIC INFORMATION-CONTINUED FOR FISCAL YEAR 2018 WORKFORCE ISSUES-CONTINUED

The cost of living in Monroe County is quite a bit higher than most of the rest of the state, making it difficult to recruit and retain staff. Economic conditions have forced some employees to relocate. Therefore, overall compensation must be carefully considered each year in order to assure a sufficient workforce.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

SYSTEM OVERVIEW FOR FISCAL YEAR 2018

Service Area

System Overview

o 24 mgd lime softening water treatment plant o 10 Biscayne aquifer supply wells o 5 Floridian aquifer supply wells o 6 mgd brackish water reverse osmosis plant o 2 seawater reverse osmosis plants (3mgd total capacity) o 187 miles of steel and ductile iron transmission main (18”-36”) at up to 250 psi o 6 transmission booster and back pump stations o 43 bridge crossings o 49 mg capacity in 33 storage tanks o 690 miles of potable water distribution main at up to 55 psi o 26 pumping stations o 7 wastewater treatment plants o 195 miles of wastewater collection and force main lines o 14 approximate miles of reclaimed distribution water lines

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

PROFILE OF THE AUTHORITY FOR FISCAL YEAR 2018 HISTORY AND PURPOSE

In 1937, the legislature of the state of Florida created the Florida Keys Aqueduct Commission, the predecessor to the Florida Keys Aqueduct Authority (Authority). The Commission was charged with the responsibility of obtaining, supplying and distributing potable water to the Florida Keys. In 1970, the Authority was established by the state legislature to succeed the Commission. The Authority currently operates under Special Legislation 76-441, Laws of Florida, as amended, (Enabling Legislation).

The Authority is the sole provider of potable water for all the residents of the Florida Keys. The Authority also provides wastewater collection and treatment in certain areas of the Florida Keys. The Authority provides service to over 45,000 customers throughout the Florida Keys, which are a part of Monroe County. The reporting entity consists of the operations of the water and wastewater utility.

The Authority is governed by a five-member board of directors appointed by the Governor of the State of Florida from districts identical to the county commission districts in Monroe County. Members serve four-year terms. The Board employs an executive director who is the chief executive officer of the Authority.

THE AUTHORITY’S FACILITIES

The Authority has made significant improvements to the infrastructure of the water system over the years to accommodate increased demand. The initial phase of the transmission pipeline replacement was completed in the early 1980s. The Authority then established a long-range capital improvement master plan to address anticipated future water demands. This master plan was updated in 2006 in conjunction with the development of a strategic water supply plan that identifies future water supplies.

An overview of the Authority’s facilities follows.

Well fields The Authority draws its primary raw water supply from the Biscayne Aquifer through ten wells with screened depths of 20 to 60 feet. The well field is adjacent to the outskirts of the Everglades National Park and is within an environmentally protected pine rockland. The location of the well field, along with restrictions enforced by state and local regulatory agencies, contribute to the unusually high quality of the raw water, which meets all federal and state finished drinking water standards prior to any treatment.

Water production and treatment facilities The Authority’s primary water production facilities are a lime softening plant that treats water withdrawn from the Biscayne Aquifer and a reverse osmosis plant that treats brackish water from the deeper Floridian Aquifer. Water treated at these facilities is then blended and disinfected before entering the transmission line. The lime softening plant has a design capacity of 23.79 mgd. The water treatment process consists primarily of lime softening, filtration disinfections and fluoridation. The reverse osmosis plant has a design capacity of 6 mgd. Brackish water is forced through membranes to remove chlorides and impurities.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

PROFILE OF THE AUTHORITY, CONTINUED FOR FISCAL YEAR 2018

Water production and treatment facilities, continued to these treatment facilities are water storage tanks, high service pumping equipment emergency diesel generators, a control center for transmission telemetry and a state-certified water quality testing laboratory.

The Authority also maintains seawater reverse osmosis facilities in Stock Island and Marathon capable of producing 2 mgd and 1 mgd, respectively. These facilities were constructed primarily for emergency operations in the event of a major transmission main break.

Water transmission and distribution systems The Authority maintains approximately 187 miles of transmission main and approximately 690 miles of distribution lines. The transmission main ranges in size from 36 inches leaving the water treatment plant in Florida City to 18 inches at the end of the line in Key West and in areas with redundant lines. The Authority operates transmission pump stations at the water treatment plant in Florida City, Key Largo, Long Key, Marathon, Ramrod Key and Stock Island. These pump stations boost the water pressure to meet water demands throughout the service area and can also back pump in the event of a line break. The stations have pumps with electric variable speed drives as well as diesel engine drives for emergencies. The Authority also operates nineteen distribution pump stations located throughout the service area to maintain water pressure in the distribution system.

Wastewater treatment facilities The Authority owns and operates a .054 mgd wastewater treatment facility in Bay Point, a .27 mgd facility in Duck Key, a .066 mgd facility in Layton and a .20 mgd facility in Key Haven, Florida. Additionally, the Authority operates a .96 mgd facility in Cudjoe Key and a .33 mgd facility in Big Coppitt that are owned by Monroe County. The Authority and Monroe County are parties to a 99-year lease agreement that grants the Authority the right to operate and maintain county-owned wastewater systems, including setting rates sufficient to fund those operations. The Authority is nearing completion of the collection system for the Cudjoe system under this agreement. As the capital costs are being borne by Monroe County, they are not included in this budget. However, customer fees and operating expenses for the systems are budgeted in fiscal year 2018.

Wastewater transmission and collection systems The Authority’s wastewater collection systems are comprised gravity, low-pressure and vacuum systems. There are also transmission force mains that carry the effluent from the collection systems to the wastewater treatment facilities.

Reclaimed water distribution systems The Authority provides reclaimed water in certain areas that supplies non-potable irrigation water to residents and resort facilities. This reclaimed water is priced at a reduced rate to encourage customers to use it for non-potable uses rather than using potable water.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

PROFILE OF THE AUTHORITY, CONTINUED FOR FISCAL YEAR 2018

THE AUTHORITY’S OPERATIONS

The Authority serves over 50,000 water customers in a service area that includes all the Florida Keys. Due to the geography of the Florida Keys, operations crews and facilities must be located throughout the service area. In addition to operating the water system, these crews respond to line breaks and other service interruptions, perform scheduled preventive maintenance and leak surveys, and maintain facilities and structures.

The Authority’s service area for wastewater services includes all areas in unincorporated Monroe County except Ocean Reef, the Key Largo Wastewater Treatment District (Tavernier, Key Largo and Cross Key), and the area of Stock Island served by Key West Resort Utilities. The Authority also serves the City of Layton. The Authority currently serves approximately 10,500 wastewater customers.

Water quality assurance The water quality staff is responsible for water quality assurance for the Authority. In 1996, the Safe Drinking Water Act was approved in response to improvements to the regulatory process for the protection of public health based on sound science. This law regulates the drinking water quality standard setting process, operator certification, monitoring requirements, consumer confidence reports and source water protection. The Authority strives to ensure that the Florida Keys water supply meets the highest quality standards possible for safety, aesthetics and taste. The Authority employs staff that is certified in the treatment, testing, monitoring and distribution of the water supply. Water is tested regularly, both prior to and after treatment, to ensure that it complies with or surpasses all federal and state water quality requirements. An annual consumer confidence report is provided to Authority customers in July of each year.

Protection of the groundwater source from potential pollution is a very important water quality issue. The Authority has an ongoing agreement with the Dade County Department of Environmental Resource Management (DERM) to regulate and manage issues relating to the protection of the Authority’s well field. DERM monitors ground and surface water to establish water quality trends, enforces laws against illegal discharges, protects important aquifer recharge areas, and regulates underground storage tanks, liquid waste haulers and other hazardous waste

The Authority monitors a network of wells and structures for salt water intrusion monthly. This network includes seven Authority wells, six United States Geological Survey wells, and four SFWMD canal sites in the Florida Everglades. These seventeen sites provide valuable information on the location, movement and velocity of the saline/fresh water interface.

The Authority uses chloramines as its primary disinfecting agent. Chloramines, though not as strong as free chlorine, remain more stable and do not produce potentially harmful by-products. The Authority performs bacteriological testing on samples taken from approximately 90 sample sites throughout the system to ensure that appropriate disinfection is taking place.

In the state of Florida, water utilities are required to establish an ongoing cross-connection control program to detect and prevent cross-connections that may create a potential health hazard. A cross-connection is any physical connection between the water supply and any private piping arrangement that contains a foreign liquid or substance. To prevent potential backflow from such an arrangement, the Authority must either discontinue water service until the cross-connection is eliminated or require installation of an approved backflow prevention device.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

PROFILE OF THE AUTHORITY, CONTINUED FOR FISCAL YEAR 2018 AWARDS

Distinguished Budget Presentation Award The Government Finance Officers Association of the United States and Canada (GFOA) awarded the Distinguished Budget Presentation Award for Excellence in Budget Presentation for the fiscal year beginning October 1, 2016. This was the tenth year in a row that the Authority has achieved this prestigious award. The award represents a significant achievement by The Authority. It reflects the commitment of The Authority’s staff to meet the highest principles of governmental budgeting. To receive the award The Authority had to satisfy nationally recognized guidelines for effective budget presentation. A Distinguished Budget Presentation Award is valid for a period of one year only. We believe that our current budget and financial plan for the fiscal year ending September 2015 continues to meet the Distinguished Budget Presentation Award’s requirements and we have submitted it to the GFOA to determine its eligibility for another award.

Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Authority for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2015. This was the 25th consecutive year that the Authority has achieved this prestigious award. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and it has been submitted to the GFOA to determine its eligibility for another certificate.

Outstanding AquaSBR Plant Performance For the sixth year in a row, the Authority has been recognized for its outstanding performance in the operation of its wastewater treatment plants. Treating wastewater to the permit levels and maintaining constant nutrient levels year- round are the criteria used for this acknowledgment.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

PROFILE OF THE AUTHORITY, CONTINUED FOR FISCAL YEAR 2018

ACKNOWLEDGEMENTS

The preparation of the budget and financial plan for the year ending September 30, 2018 was made possible by the dedicated service of the entire staff of the Florida Keys Aqueduct Authority. Each participant has our sincere appreciation for the contributions made in support of this effort.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

PROFILE OF THE AUTHORITY, CONTINUED FOR FISCAL YEAR 2018

IMPORTANT MILESTONES IN THE AUTHORITY’S HISTORY

1937 State of Florida creates the Florida Keys Aqueduct Commission, the only water utility in Florida at the time that reported directly to the governor’s office.

1941 First water supply system is completed by the U.S. Navy and the Commission. Shortly thereafter, a water treatment plant is built at Florida City having an original capacity of 2.4 mgd.

Mid 40s-60s Water transmission and distribution systems are upgraded to meet rising demand, the Florida City WTP is expanded, booster pumping stations are strategically built along the Keys to Long Key pumping station 1960 boost water pressures, and storage tanks are built. By 1962, water system capacity is 6.5 mgd.

1966 A flash desalination facility is constructed to supplement water supply and pressure in Key West due to increased water demands that exceeded the pipeline capacity.

1974 State of Florida amends enabling legislation changing Florida Keys Aqueduct Commission to Florida Keys Aqueduct Authority.

1976 U.S. Navy sells the water system to the Authority for $2.1 million. The Authority board becomes elected rather than appointed by the governor.

1979 A 3 mgd reverse osmosis plant is built on Stock Island replacing the flash desalination facility to supplement water supply and pressure in Key West until the new, larger-diameter pipeline from Florida City becomes operational.

1982 New larger-diameter pipeline from Florida City to Key West is completed, financed through a loan from the Farmers Home Administration.

1989 J. Robert Dean Water Treatment Facility replaces original Navy plant in Florida City, having a design capacity of 22 mgd.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

PROFILE OF THE AUTHORITY, CONTINUED FOR FISCAL YEAR 2018

IMPORTANT MILESTONES IN THE AUTHORITY’S HISTORY, CONTINUED

1992 In August, Hurricane Andrew, one of the worst storms of the century, slams into the J. Robert Dean Water Treatment facility causing a considerable amount of damage. The rebuilding of the facility begins immediately after the hurricane passes. Despite the damage, the plant continues to provide disinfected potable water to the Florida Keys by operating on emergency back-up generation for 21 days.

1997 Reverse osmosis facility on Stock Island is renovated. The plant’s capacity is split between Stock Island (2 mgd) and Marathon (1 mgd) to provide potable water during emergencies.

2001 The lime-softening water plant is upgraded and expanded to provide more treatment and storage capacity.

2005 The Keys are impacted by four named hurricanes, culminating in October with Hurricane Wilma which caused extensive flooding throughout the Keys. The damages to the Authority from Wilma were substantial, yet water service was not interrupted.

2008 Hurricane Wilma The David C. Ritz Booster Pumping Station at Key Largo is placed into service to assure adequate water pressures are maintained in the transmission pipeline for the delivery of water to the Florida Keys.

2009 The Authority completed construction of a 6 mgd reverse osmosis plant adjacent to its lime softening plant in Florida City. This facility helps the Authority meet dry season permit limitations and reduces the strain placed on the Biscayne Aquifer. The Authority also placed in service the Big Coppitt Regional Wastewater system serving approximately 1,100 customers in the lower keys. Reverse osmosis expansion in 2011 Florida City South Florida experienced severe drought conditions, with one of the driest periods in 80 years. Water conservation efforts, along with the effects of an extended financial recession, resulted in a ten-year low in water demand.

2017 The Authority is nearing completion of a $200 million wastewater system to service the lower Keys. This system is the last major wastewater system necessary to complete advanced wastewater treatment throughout the Keys.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

BUDGET HIGHLIGHTS, ISSUES AND PRIORITIES FOR FISCAL YEAR 2018

KEY HIGHLIGHTS

The 2018 budget reflects the impacts of several important initiatives and internal factors as well as certain external factors. Some of the important initiatives and internal factors include:

• New operation of the Cudjoe Regional wastewater system • Sizable capital improvement plan • Contractual salary increases

Other budget impacts that are driven by external factors include the following:

• Potential curtailment of water use in light of new wastewater charges • Increasing costs of communications systems maintained by external partners • Uncertainty of employee health care costs for self-retained risk

These impacts, as well as other budget drivers, are discussed in more detail below. Other issues that may affect the budget that are not included in this draft are the potential commencement of a project partnership with the Department of Health for installation of onsite wastewater systems and a potential increase in power costs if the reverse osmosis plants are utilized.

OPERATING REVENUE

Utility operating revenue After several years of reduced consumption, water sales began to show signs of recovery in recent years. Water volume sales are budgeted to increase by about 1% over the current budget. The budget includes a 5% rate increase effective October 1, 2017 as well as the annual indexing for inflation.

Other revenue and capital contributions System development fees remain relatively insignificant, comprising only about 2% of overall revenue. Interest income is also minor, about 1% of total revenue.

OPERATING EXPENSES AND OPERATING CAPITAL OUTLAY

The total overall budgeted operating expenditures, including capital outlay for ongoing operations, are about 4.5% higher than those budgeted in the current year. Some of the significant budgeted expenditures are discussed below.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

BUDGET HIGHLIGHTS, ISSUES AND PRIORITIES, CONTINUED FOR FISCAL YEAR 2018 Personnel costs Salaries and benefits are budgeted at $26,606,600, or about 3.3% higher than the current budget. A cost of living salary adjustment of 2.0% is budgeted to go into effect for all employees on October 1, 2017 along with an average estimated merit increase of about 1.1%. This amount will vary based on actual performance results. Eight new positions were added in 2018. Three were wastewater personnel along with an additional engineer, a leak control technician, an IT specialist a meter and billing analyst and an asset management position. Positions for four customer service staff and a position for the assistant manager of engineering were deleted in the 2018 salary budget.

Other significant operating expense changes Other operating expenses Wastewater operating costs, such as materials and maintenance, chemicals and electricity are budgeted to increase, in part due to the new wastewater systems. The increase in outsourced operations is due in part to a project to refurbish the variable speed drives at Florida City by the Technical Services group. Other consulting and support services increased mainly due to the deep well integrity test at Florida City which occurs every five years. Other utilities and technical services increased due to increasing costs of fiber optic and telephone service.

Capital outlay Capital outlay is budgeted at $3,732,300, an increase of $37,600 over the current year. These costs are mainly for replacement of heavy equipment and vehicles, master tap upgrades as well as critical software and network components.

CAPITAL IMPROVEMENT PROJECTS The 2018 capital improvement plan is centered around projects that are critical to sustaining continued reliable operations. The 2018 portion of the plan calls for $38,733,000 in capital expenditures and includes costs to expand and refurbish the Authority’s seawater reverse osmosis plant on Stock Island to increase its capacity from 2 mgd to 4 mgd. Also included are projects to redirect wastewater flows in Key Haven and the US Navy base to newer centralized treatment plants that meet current treatment standards. The old plants will be demolished. See a detailed discussion of capital projects under the section entitled Capital and Debt.

CAPITAL FINANCING AND DEBT SERVICE The Authority may issue debt for constructing and maintaining the system’s infrastructure or for refunding previously issued debt by pledging the revenue of the individual systems. No legal debt limit exists. However, revenue must be sufficient to fund operations, service the debt payments and provide a “cushion” as defined in the bond covenants.

A new bond issue of approximately $50,000,000 to fund several key capital projects is included in the 2018 budget. Debt service is budgeted at approximately $10.1 million, an increase of about 12% due to the issuance of these new bonds. The finance team continually evaluates the cash requirements of the capital improvement plan and proposes financing alternatives to the Board for consideration throughout the budget year.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

HOW EACH DOLLAR OF THE 2018 BUDGET WILL BE SPENT

Capital Personnel Capital Debt Capital Projects Services Projects Service Equipment 40% 27% 18% 10% 5%

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Introduction and Overview

Organization Chart Financial Policies that Impact the Budget Budget Process

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Structure, Policy and Process

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Structure, Policy and Process

ORGANIZATION CHART FOR FISCAL YEAR 2018 Board of Directors

Internal/Compliance Auditor Executive Director General Counsel Tim Esquinaldo Kirk C. Zuelch Robert Feldman

Executive Department 5

Deputy Executive Director Deputy Executive Director Kent Nelson Kerry G. Shelby 8 Utility Operations Division Administration Division

Manager of Manager of Manager of Manager of Manager of Manager of Finance Human Customer Service Information Engineering Operations Denise Resources (combined with Technology Jolynn Reynolds Tom Morgan Preuss Karen Deputy Director) Paul Cales Rodriguez

Finance Human Customer Information Engineering Lower Keys 14 Resources Service Technology Services Operations 3 19 10 7 37

Purchasing & Field Services Contract Middle Keys Inventory 4 16 11 Management Operations 5 7 47

Billing Water Quality Upper Keys 6 35 6 Operations 20

Records Design Production & 4 6 Transmission 26

Construction Electrical & 30 Total approved positions 277 Crew Instrumentation 9 Controls 14

Data Management & Water Loss 145 8

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Structure, Policy and Process

CONTACT INFORMATION FOR FISCAL YEAR 2018

Executive Division

Kirk C. Zuelch, Executive Director . [email protected] . 305-295-2204 . Robert Feldman, General Counsel . [email protected] . 305-295-2201 . Tim Esquinaldo, Internal Auditor . [email protected] . 305-295-2206 .

Administration Division

Kerry G. Shelby, Deputy Executive Director of Administration . [email protected] . 305-295-2230 . Denise Preuss, Manager of Finance . [email protected] . 305-295-2233 . Karen Rodriquez, Manager of Human Resources . [email protected] . 305-295-2210 .

Paul Cales, Manager of Information Technology . [email protected] . 305-295-2121 .

Utility Operations Division

Kent Nelson, Deputy Executive Director of Utility Operations . [email protected] . 305-295-2140 . Tom Morgan, Manager of Operations . [email protected] . 305-295-6357 . Jolynn Reynolds, Manager of Engineering . [email protected] . 305-295-2141 .

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Structure, Policy and Process

FINANCIAL POLICIES THAT IMPACT THE BUDGET FOR FISCAL YEAR 2018

PERFORMANCE MEASURMENT POLICIES

The Authority will update its strategic plan that identifies the strategic initiatives each year as part of the budget process.

Annually, each department will develop departmental performance measures that support successful results in achieving its strategic initiatives. Goals should be related to core services of the department and should reflect customer needs. The measures should be a mix of different types, including effectiveness, efficiency, demand and workload.

Performance measures will be used as a basis for preparing the Authority’s budget. All budgeted amounts should be directly or indirectly linked to accomplishing the department’s and the Authority’s strategic initiatives.

PLANNING

The Authority will prepare and maintain an ongoing five-year financial plan. The plan will include projections of existing revenue and expenses as well as operating costs and revenue of future capital improvements included in the capital budget.

Interim Financial Reporting The Authority will prepare and distribute interim budget reports comparing actual versus budgeted revenue and expense activity. The Authority will establish and maintain accounting practices that can relate budget amounts to actual results.

Capital Improvement Policies The Authority will develop and maintain a multi-year plan for capital improvements. The Authority will enact an annual capital budget based on the multi-year capital improvement plan.

The Authority will develop the capital improvement budget along with the operating budget. Future operating costs associated with new capital improvements will be projected and included in operating budget forecasts.

The Authority will maintain all its assets at a level adequate to protect the Authority’s capital investment and to minimize future maintenance and replacement costs.

The Authority will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted to the Authority board for approval.

The Authority will determine the most favorable financing method for all new projects.

Debt Management Policies The Authority will continually review its outstanding debt to determine if and when the financial marketplace will afford the Authority the opportunity to lessen its debt service costs.

The Authority will confine long-term borrowing to capital improvements or projects that cannot be financed from current revenues.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Structure, Policy and Process

FINANCIAL POLICIES THAT IMPACT THE BUDGET, CONTINUED FOR FISCAL YEAR 2018

When the Authority finances capital projects by issuing bonds, it will pay back the bonds within a period not to exceed the estimated useful life of the project. The Authority will strive to have the final maturity of revenue bonds at, or below, thirty years.

The Authority will not use long-term debt proceeds for current operations.

The Authority will maintain good communications with bond rating agencies regarding its financial condition.

The Authority will follow a policy of full disclosure on every financial report and borrowing prospectus.

Revenue Policies The Authority will try to maintain a diversified and stable revenue system to shelter it from unforeseeable short- run fluctuations in any revenue source.

The Authority will estimate its annual revenue by an objective, analytical process, wherever practical. Each existing and potential revenue source will be re-examined annually.

Each year, the Authority will evaluate the full costs of activities supported by user fees to identify the impact of inflation and other cost increases.

The Authority will automatically revise user fees, at least annually, to adjust for the effects of inflation.

Investment Policies The Authority will adhere to the investment policies as adopted by its Board of Directors. These policies apply to the investment of short-term operating funds of the Authority in excess of those funds required to meet current expenditures. These policies do not apply to longer-term funds and proceeds from bond issues. Topics included in the investment policies are quite detailed and include information on:

• Investment objectives • Safety • Liquidity • Yield • Prudence and ethical standards • Authorized investments • Risk and diversification • Authorized investment institutions and dealers • Internal controls • Reporting

Working Capital The Authority will strive to maintain operating reserves in an amount greater than or equal to three months of basic operating expenses.

The Authority will strive to maintain a reserve of at least $9,000,000 for working capital in the event of a natural disaster or operating emergency.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Structure, Policy and Process

FINANCIAL POLICIES THAT IMPACT THE BUDGET, CONTINUED FOR FISCAL YEAR 2018

Surplus Policies It is the intent of the Authority to use all surpluses generated to accomplish these goals: • Meeting reserve policies • Avoidance of future debt • Capital replacement • Retirement or refinancing of existing debt • Cash payments for capital improvement program project

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Structure, Policy and Process

BUDGET PROCESS FOR FISCAL YEAR 2018 Budget Preparation The Authority begins the budgeting process in February of each year by updating its strategic initiatives and identifying specific goals to be accomplished during the upcoming budget year. Based on those initiatives, each department then prepares a preliminary summary of significant budget items and changes from the previous year, including staffing changes, major capital purchases, technology needs, capital projects and changes in debt service requirements. These summaries are reviewed with the board’s budget committee in a public workshop or board meeting to get preliminary feedback from the Board on the final development of the budget.

Acting on the input from the Board, staff then prepares a detailed draft budget for each cost center within the Authority. This draft budget is reviewed by the budget committee or the entire board in three public hearings, each of which will provide an opportunity for input from the public. The budget committee may schedule additional meetings during this process as necessary. A draft budget must be advertised in newspapers of general circulation in the Florida Keys no later than August 1st according to the Authority’s enabling legislation. At a public board meeting prior to September 1st, after all comments have been received from members of the public and the board, the board must adopt a final budget.

Budget Monitoring Compliance with the budget is monitored on a continuing basis. Monthly budget reports are prepared and distributed to the members of the board, the Authority’s staff and others to ensure ongoing analysis. The total budget may not be changed during the fiscal year without specific action by the board to do so. Any line item transfers must be approved by the Executive Director.

The Authority’s budget is designed to fund operations, capital expenditures and debt service. A balanced budget is one that provides current year sources that, along with past years’ reserves, are sufficient to fund the current year’s expenditures.

Budget Presentation The Authority’s operations are accounted for in an enterprise fund. The fund is budgeted on the accrual basis of accounting. Rates for water and wastewater service are established by the Board. The revenue generated by these rates is used to fund the Authority’s operations.

The budget summary is presented as budgeted sources and uses so that the reader can see all aspects of the budget in one place. Although the budget is prepared on the accrual basis, sources and uses are approximations of cash sources and uses. The budget summary shows the budgeted excess or shortfall of sources over uses that are available for reserves and the estimated ending reserve position. This reserve position differs from ending net position (which are presented in the five year financial plan). Ending net position is essentially the Authority’s net equity (assets less liabilities).

Budgeted expenditures are characterized as operating expenses, capital expenditures or debt service. Capital expenditures are those expenditures for assets costing over $1,500 and having a useful life of at least three years. Routine capital expenditures are assets purchased as a part of ongoing operations. Non-routine capital expenditures are referred to as capital improvement projects and are defined in the 20-year capital improvement master plan. Debt service includes the payment of principal and interest on outstanding debt issues which, in the Authority’s case, take the form of revenue bonds.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Structure, Policy and Process

BUDGET PROCESS, CONTINUED FOR FISCAL YEAR 2018 Budget Preparation Timeline

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Strategic Planning Board and customer input (informal) Staff input (informal) Update vision, mission and strategic goals Update policies, demographics and economics Develop goals and objectives Capital Improvements and Financing Plan Review project and priorities Estimate five- year operational impact Review plan and budget team Develop proposed financing strategy Review draft with Executive Director Operating Budget Update budget formats Update revenue assumptions and proposed rate changes Estimate impacts of salary increases, retirements, etc. Develop detailed cost center expenditure budgets Prepare roll-forward of staff and fleet Review budgets with budget team Review budget with Executive Director Five-Year Financial Plan Review and update sales and expenditure projections Project necessary borrowings for next five years Prepare schedule of necessary rates for five years Project debt service coverage based on projections Board and Public Input Budget committee workshops Public hearings Budget advertised Budget adoption

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Structure, Policy and Process

BUDGET PROCESS, CONTINUED FOR FISCAL YEAR 2018 Budget Calendar

January 2017 Dates for Preparation of the 2018 May 2017 S M T W T F S Budget S M T W T F S 1 2 3 4 5 6 7 Informal input from our May 24th budget 1 2 3 4 5 6 8 9 10 11 12 13 14 Board of Directors, staff workshop 7 8 9 10 11 12 13 and customer’s year 15 16 17 18 19 20 21 14 15 16 17 18 19 20 around. Prepare budget 22 23 24 25 26 27 28 sheets for distribution to 21 22 23 24 25 26 27 29 30 31 Departments. 28 29 30 31

February 2017 June 2017 S M T W T F S S M T W T F S 1 2 3 4 In February, June 28th budget public 1 2 3 5 6 7 8 9 10 11 Departments are hearing 4 5 6 7 8 9 10 working on their 12 13 14 15 16 17 18 budgets. 11 12 13 14 15 16 17 19 20 21 22 23 24 25 18 19 20 21 22 23 24 26 27 28 25 26 27 28 29 30 31

March 2017 July 2017 S M T W T F S S M T W T F S th nd 1 2 3 4 Week 3 budget meetings July 26 , 2 budget 1 with Deputy Executive public hearing Marathon 5 6 7 8 9 10 11 2 3 4 5 6 7 8 Director 12 13 14 15 16 17 18 9 10 11 12 13 14 15 19 20 21 22 23 24 25 Week 4 budget meetings 16 17 18 19 20 21 22 26 27 28 29 30 31 with Executive Director 23 24 25 26 27 28 29 30 31 April 2017 August 2017 S M T W T F S April 26th first budget S M T W T F S rd 1 workshop August 23 , 3rd and 1 2 3 4 5 final budget public 2 3 4 5 6 7 8 6 7 8 9 10 11 12 hearing Tavernier. 9 10 11 12 13 14 15 Budget adoption planned 13 14 15 16 17 18 19 16 17 18 19 20 21 22 for regular board 20 21 22 23 24 25 26 23 24 25 26 27 28 29 meeting agenda. 27 28 29 30 31 30

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Summaries

Summary of Budget Sources and Uses

Summary of Revenue Sources

Rate Structure

Operating Budget by Expenditure Type

Five-year Financial Plan

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Summaries

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Summaries

SUMMARY OF BUDGETED SOURCES AND USES FOR FISCAL YEAR 2018

2016 2017 budget 2018 budget Actual Water Wastewater Total Water Wastewater Total % Change Total budgeted sources of funds Utility operating revenue $ 59,809,589 $ 50,146,000 $ 8,951,000 $ 59,097,000 $ 53,917,000 $ 9,177,000 $ 63,094,000 6.8% Interest income 292,557 300,000 - 300,000 300,000 - 300,000 0.0% System development fees and other income 2,467,426 1,410,000 138,000 1,548,000 1,510,000 138,000 1,648,000 6.5% Special assessments and appropriations - - 5,000,000 5,000,000 - - - -100.0% Proceeds from issuance of debt, net of issue costs - - 10,000,000 10,000,000 50,000,000 - 50,000,000 400.0%

Total budgeted sources of funds 62,569,572 51,856,000 24,089,000 75,945,000 105,727,000 9,315,000 115,042,000 51.5%

Total budgeted uses of funds Operating expenditures (excluding depreciation) 45,717,723 38,538,500 8,372,100 46,910,600 41,649,500 7,470,200 49,119,700 4.7% Capital improvement projects 8,593,501 10,775,000 9,600,000 20,375,000 29,883,000 8,850,000 38,733,000 90.1% Debt service 10,418,115 8,281,000 767,000 9,048,000 9,229,000 861,000 10,090,000 11.5%

Total budgeted uses of funds 64,729,339 57,594,500 18,739,100 76,333,600 80,761,500 17,181,200 97,942,700 28.3%

Excess (deficit) sources over uses (2,159,767) (5,738,500) 5,349,900 (388,600) 24,965,500 (7,866,200) 17,099,300 Adjustments to cash basis from accrual 4,126,616 ------

Change in cash and investments 1,966,849 (5,738,500) 5,349,900 (388,600) 24,965,500 (7,866,200) 17,099,300 Beginning cash and investments 42,627,789 43,036,400 1,558,200 44,594,600 37,297,900 6,908,100 44,206,000 -0.9%

Ending cash and investments 44,594,638 37,297,900 6,908,100 44,206,000 62,263,400 (958,100) 61,305,300 38.7% Reserves and restricted cash and investments (29,320,000) (29,320,000) (72,000) (29,392,000) (33,250,000) (71,000) (33,321,000) 13.4%

Estimated ending unrestricted cash and investments $ 15,274,638 $ 7,977,900 $ 6,836,100 $ 14,814,000 $ 29,013,400 $ (1,029,100) $ 27,984,300 88.9%

SOURCES OF FUNDS USES OF FUNDS Proceeds from issuance of debt Debt service 34% 10%

Operating revenue 55%

System development Operating expenses charges Interest Income Capital (excluding 1% 0% improvement projects depreciation) 40% 50%

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Summaries

SUMMARY OF REVENUE SOURCES FOR FISCAL YEAR 2018

2016 2017 budget 2018 budget % change Increase / Actual Water Wastewater Total Water Wastewater Total from prior Decrease budget Number of locations in ww you 49,086 49,000 10,500 * 50,600 10,500 Estimated locations receiving monthly base charge had +3000

Volume Estimated gallons (000s) billed at retail rates 4,774,587 4,850,000 4,899,000 Estimated gallons (000s) billed to US Navy 274,413 249,000 251,000

Total estimated gallons(000s) sold 5,049,000 5,099,000 5,150,000

Operating revenue Fees for service Retail water rate revenue $ 42,577,821 $ 45,103,000 $ 45,103,000 $ 48,788,000 $ 48,788,000 $ 3,685,000 8.2% US Navy water rate revenue 1,048,332 1,001,000 1,001,000 1,083,000 1,083,000 82,000 8.2% US Navy distribution system charge 2,456,208 2,487,000 2,487,000 2,487,000 2,487,000 - 0.0% Retail reclaimed water rate revenue 55,919 55,000 55,000 59,000 59,000 4,000 7.3% Retail wastewater rate revenue 2,986,921 7,487,000 7,487,000 $ 7,713,000 7,713,000 226,000 3.0% US Navy wastewater revenue - 1,464,000 1,464,000 1,464,000 1,464,000 - 0.0%

Total fees for service 49,125,201 48,646,000 8,951,000 57,597,000 52,417,000 9,177,000 61,594,000 3,997,000 6.9% Other operating revenue 4,096,009 1,500,000 - 1,500,000 1,500,000 - 1,500,000 - 0.0%

Total operating revenue 53,221,210 50,146,000 8,951,000 59,097,000 53,917,000 9,177,000 63,094,000 3,997,000 6.8%

Non-operating revenue Interest income 294,360 300,000 - 300,000 300,000 - 300,000 - 0.0% Grant proceeds ------Charges to other utilities for billing services 380,193 390,000 - 390,000 390,000 - 390,000 - 0.0% Other income 433,370 120,000 - 120,000 120,000 - 120,000 - 0.0%

Total non-operating revenue 1,107,923 810,000 - 810,000 810,000 - 810,000 - 0.0%

Total budgeted revenue 54,329,133 50,956,000 8,951,000 59,907,000 54,727,000 9,177,000 63,904,000 3,997,000 6.7%

System development fees (including assessments) 1,074,959 900,000 138,000 1,038,000 1,000,000 138,000 1,138,000 100,000 9.6% State appropriation (Key Haven project) - - 5,000,000 5,000,000 - - - (5,000,000) 10.0%

Total revenue and system development fees $ 55,404,092 $ 51,856,000 $ 14,089,000 $ 65,945,000 $ 55,727,000 $ 9,315,000 $ 65,042,000 $ (903,000) -1.4%

* Total reflects existing customers and the number of new customers phased in throughout the year. General assumptions: Water volume sales increase 1.0% 1.0% Rate index increase 2.0% 2.0% Additional rate increase (decrease) 5.0% 0.0% Average interest rate (applied to average cash balance) 0.5% System development fee growth factor 0.0% 0.0%

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Summaries

RATE STRUCTURE FOR FISCAL YEAR 2018

The Authority’s current water rate structure is an inverted block structure intended to encourage conservation. The rates for monthly water service includes a monthly base facility charge that varies by meter size and serves as the minimum monthly bill, and a consumption charge based on metered water usage.

Wastewater rates are structured similar to the structure used for water with monthly base facility charges and flow charges based on water flow. Single family residential customers are capped at 10,000 gallons of water flow for wastewater billing purposes.

User charges are indexed annually on October 1 of each year to adjust for inflationary impacts on the cost of operations based on the Consumer Price Index for Miami-Ft. Lauderdale published by the US Bureau of Labor Statistics.

SUMMARY OF WATER, RECLAIMED AND WASTEWATER RATES

The following table summarizes the Authority’s existing rates for water and wastewater service and projected rates after annual indexing for inflation.

Rates in effect on After October 1, 2017 October 1, 2016 index and rate increase Potable Water Rates Base facilities charge ⅝-inch or ¾-inch $ 14.12 $ 15.06 1-inch 35.30 37.66 1½-inch 70.59 75.31 2-inch 112.94 120.48 3-inch 211.75 225.89 4-inch 350.37 373.77 6-inch 707.19 754.43 8-inch 1,129.30 1,204.74

Consumption charge [1] Block 1 $ 5.93 $ 6.33 Block 2 8.66 9.24 Block 3 9.71 10.36 Block 4 10.83 11.55 Block 5 11.89 12.68

Reclaimed Water Rates Consumption charge [1] Block 1 $ 2.97 $ 3.16 Block 2 4.33 4.62 Block 3 4.86 5.18 Block 4 5.42 5.78 Block 5 5.95 6.34

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Summaries

RATE STRUCTURE, CONTINUED FOR FISCAL YEAR 2018

Rates in effect on After October 1, 2017 October 1, 2016 index and rate increase

Wastewater Rates Base facilities charge ⅝-inch or ¾-inch $ 24.18 $ 24.57 1-inch 90.70 92.15 1½-inch 181.40 184.30 2-inch 290.25 294.89 3-inch 544.21 552.92 4-inch 907.00 921.51 6-inch 1,814.03 1,843.05 8-inch 2,486.89 2,526.68 Flow collection charge Residential (up to 10,000 gallons) $ 9.15 $ 9.30 Non-residential (all consumption) 9.15 9.30

Note: Block 1 for 5/8" meter customers, which includes the majority of FKAA customers, is 6,000 gallons. Consumption blocks for customers with larger meters increase based on meter equivalents.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Summaries

OPERATING EXPENDITURE BUDGET BY EXPENDITURE TYPE FOR FISCAL YEAR 2018

SCHEDULE OF BUDGETED EXPENDITURES

FOR THE YEAR ENDING SEPTEMBER 30, 2018 Total Company

BUDGETED 2018

% change from 2016 Budget 2016 Actual 2017 Budget Water Wastewater Total Increase /Decrease prior budget

Operating capital expenditures Additions to utility plant 4,625,500 $ 4,214,018 $ 3,694,700 $ 3,522,000 $ 210,300 $ 3,732,300 $ 37,600 1% Capitalized salaries 757,600 772,219 1,061,300 1,033,800 - 1,033,800 (27,500) -3% Capitalized overtime - 23,175 ------Total operating capital expenditures 5,383,100 5,009,412 4,756,000 4,555,800 210,300 4,766,100 10,100 0.2%

Operating expenses Personnel services Salaries 17,686,500 18,050,652 18,265,100 17,434,800 1,497,300 18,932,100 667,000 4% Overtime 507,400 551,532 507,300 333,600 150,000 483,600 (23,700) -5% Retirement 1,602,800 1,671,696 1,668,100 1,682,800 114,600 1,797,400 129,300 8% Payroll taxes 1,450,100 1,439,248 1,517,000 1,438,500 126,000 1,564,500 47,500 3% Employee health insurance 3,591,700 3,410,018 3,600,000 3,600,000 - 3,600,000 - 0% Other benefits 202,600 150,424 192,400 218,200 10,800 229,000 36,600 19% Total personnel services 25,041,100 25,273,570 25,749,900 24,707,900 1,898,700 26,606,600 856,700 3.3%

Other operating expenses Electricity 3,016,800 2,685,451 3,214,500 2,763,500 429,000 3,192,500 (22,000) -1% Fuel for power production 96,400 53,642 88,700 72,500 11,000 83,500 (5,200) -6% Chemicals 1,891,700 1,729,154 2,112,000 1,520,200 637,500 2,157,700 45,700 2% Maintenance and materials 3,575,900 4,053,661 3,716,900 3,451,600 524,300 3,975,900 259,000 7% Engineering services 195,000 216,385 140,000 290,000 - 290,000 150,000 107% Accounting and auditing services 75,000 62,720 82,000 89,500 - 89,500 7,500 9% Legal services 30,000 25,244 30,000 30,000 - 30,000 - 0% Outsourced operations 749,600 617,450 1,045,700 1,498,800 182,500 1,681,300 635,600 61% Other consulting and support services 1,356,400 1,168,545 1,523,500 1,579,700 - 1,579,700 56,200 4% Sludge removal 285,000 139,016 249,400 60,000 234,000 294,000 44,600 18% Rental of building - real property 33,500 18,499 19,000 8,000 6,000 14,000 (5,000) -26% Rent expense - equipment 70,200 58,074 75,800 55,600 7,400 63,000 (12,800) -17% Transportation expense 531,000 462,604 525,000 495,600 - 495,600 (29,400) -6% Insurance - vehicles 110,000 85,657 110,000 110,000 - 110,000 - 0% Insurance - general liabilities 125,300 104,562 125,000 137,000 - 137,000 12,000 10% Insurance - workers' compensation 254,000 198,757 254,000 270,000 - 270,000 16,000 6% Insurance - property and flood 1,120,000 969,171 993,300 993,300 - 993,300 - 0% Advertising 38,000 52,012 75,000 69,000 - 69,000 (6,000) -8% Bad debt expense 81,000 41,000 81,000 81,000 - 81,000 - 0% Office supplies 128,200 108,422 142,400 137,500 6,500 144,000 1,600 1% Other utilities and technical services 499,800 482,894 676,300 819,900 - 819,900 143,600 21% Postage 52,000 30,248 57,100 37,300 1,000 38,300 (18,800) -33% Travel 130,100 60,591 145,300 153,400 9,000 162,400 17,100 12% Training 158,300 99,639 148,500 140,900 12,500 153,400 4,900 3% Miscellaneous 182,600 170,223 161,200 160,000 3,000 163,000 1,800 1% Bank charges 425,000 494,314 455,000 520,000 - 520,000 65,000 14% Public information and outreach 107,800 47,483 145,800 129,000 - 129,000 (16,800) -12% Freight charges 15,000 8,882 12,300 10,000 - 10,000 (2,300) -19% Total other operating expenses 15,333,600 14,244,300 16,404,700 15,683,300 2,063,700 17,747,000 1,342,300 8.2%

Total operating budget $ 40,374,700 $ 39,517,870 $ 42,154,600 $ 40,391,200 $ 3,962,400 $ 44,353,600 $ 2,199,000 5.2% Allocation of administrative expenses $ (3,297,500) $ 3,297,500 $ -

Total operating expenses after allocation 40,374,700 39,517,870 42,154,600 37,093,700 7,259,900 44,353,600 2,199,000 5.2%

Total operating budget $ 45,757,800 $ 44,527,282 $ 46,910,600 $ 41,649,500 $ 7,470,200 $ 49,119,700 $ 2,209,100 4.7%

Operating expenditures added in 2018 budget for new initiatives (555,600)

Operating expenditures deleted in 2018 for discontinued operations -

Net comparative 2018 budget after adjustments for new and discontinued operations $ 48,564,100 $ 1,653,500 3.5% 46

Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Summaries

FIVE YEAR FINANCIAL PLAN FOR FISCAL YEAR 2018-2022

PROJECTED CHANGES IN NET POSITION

FOR FISCAL YEARS 2018 - 2022

2018 2019 2020 2021 2022 Projected operating results Operating revenue $ 63,094,000 $ 67,319,000 $ 69,015,000 $ 70,754,000 $ 72,539,000 Operating expenses (before depreciation) (44,353,600) (44,797,000) (45,245,000) (45,697,000) (46,154,000)

Net operating income (before depreciation) 18,740,400 22,522,000 23,770,000 25,057,000 26,385,000 Interest income 300,000 300,000 300,000 300,000 300,000 Other income 510,000 516,000 522,000 528,000 535,000 Interest expense (5,745,000) (7,038,000) (6,945,000) (6,844,000) (6,765,000)

Projected net income before depreciation 13,805,400 16,300,000 17,647,000 19,041,000 20,455,000 System development fees (including assessments) 1,138,000 1,138,000 1,138,000 1,138,000 1,138,000 State appropriations (Key Haven and East Long Key) - - - - -

Projected increase (decrease) in net position before depreciation 14,943,400 17,438,000 18,785,000 20,179,000 21,593,000 Projected beginning net position 145,600,000 145,143,400 147,181,400 150,566,400 155,345,400

Projected net position before depreciation 160,543,400 162,581,400 165,966,400 170,745,400 176,938,400 Estimated depreciation (15,400,000) (15,400,000) (15,400,000) (15,400,000) (15,400,000)

Projected ending net position after depreciation $ 145,143,400 $ 147,181,400 $ 150,566,400 $ 155,345,400 $ 161,538,400

PROJECTED SOURCES AND USES OF FUNDS

FOR FISCAL YEARS 2018 - 2022

2018 2019 2020 2021 2022 Total projected sources of funds Utility operating revenue $ 63,094,000 $ 67,319,000 $ 69,015,000 $ 70,754,000 $ 72,539,000 Interest income 300,000 300,000 300,000 300,000 300,000 System development fees and other income 1,648,000 1,654,000 1,660,000 1,666,000 1,673,000 Special assessments and appropriations - - - - - Proceeds from issuance of debt, net of issue costs 50,000,000 - - - -

Total projected sources of funds 115,042,000 69,273,000 70,975,000 72,720,000 74,512,000

Total projected uses of funds Operating expenditures (excluding depreciation) 49,119,700 44,797,000 45,245,000 45,697,000 46,154,000 Capital improvement projects 38,733,000 33,900,000 21,900,000 8,600,000 6,250,000 Debt service 10,090,000 11,293,000 11,200,000 11,299,000 11,260,000

Total projected uses of funds 97,942,700 89,990,000 78,345,000 65,596,000 63,664,000

Additions to (uses of) cash $ 17,099,300 $ (20,717,000) $ (7,370,000) $ 7,124,000 $ 10,848,000

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Summaries

FIVE YEAR FINANCIAL PLAN, CONTINUED FOR FISCAL YEARS 2018-2022

PROJECTED REVENUE AND CONTRIBUTIONS

FOR FISCAL YEARS 2018 - 2022 2018 2019 2020 2021 2022

Estimated gallons (000s) sold to customers at retail rates 4,899,000 4,948,000 4,997,000 5,047,000 5,097,000 Estimated gallons (000s) sold to US Navy 251,000 254,000 257,000 260,000 263,000

Total estimated sales gallons (000s) 5,150,000 5,202,000 5,254,000 5,307,000 5,360,000

Operating revenue Fees for service Retail water rate revenue $ 48,788,000 $ 52,568,000 $ 53,943,000 $ 55,354,000 $ 56,802,000 US Navy water rate revenue 1,083,000 1,167,000 1,198,000 1,229,000 1,261,000 US Navy distribution system charge 2,487,000 2,487,000 2,487,000 2,487,000 2,487,000 Retail reclaimed water rate revenue 59,000 64,000 66,000 68,000 70,000 Retail wastewater rate revenue 7,713,000 7,915,000 8,122,000 8,334,000 8,552,000 US Navy wastewater revenue 1,464,000 1,502,000 1,541,000 1,581,000 1,622,000

Total fees for service 61,594,000 65,703,000 67,357,000 69,053,000 70,794,000 Other operating revenue 1,500,000 1,616,000 1,658,000 1,701,000 1,745,000

Total operating revenue 63,094,000 67,319,000 69,015,000 70,754,000 72,539,000

Non-operating revenue Interest income 300,000 300,000 300,000 300,000 300,000 Grant proceeds - - - - - Charges to other utilities for billing services 390,000 396,000 402,000 408,000 415,000 Other income 120,000 120,000 120,000 120,000 120,000

Total non-operating revenue 810,000 816,000 822,000 828,000 835,000

Total budgeted revenue 63,904,000 68,135,000 69,837,000 71,582,000 73,374,000

System development fees (including assessments) 1,138,000 1,138,000 1,138,000 1,138,000 1,138,000 State appropriations - - - - -

Total revenue and contributions $ 65,042,000 $ 69,273,000 $ 70,975,000 $ 72,720,000 $ 74,512,000

Budget assumptions Water volume growth sales increase 1.0% 1.0% 1.0% 1.0% Rate index increase 1.6% 1.6% 1.6% 1.6% Additional water rate increase (decrease) 5.0% 0.0% 0.0% 0.0% Additional wastewater rate increase (decrease) 0.0% 0.0% 0.0% 0.0% Average interest rate (applied to average cash balance) 0.5% 0.5% 0.5% 0.5% System development fee growth factor 0.0% 0.0% 0.0% 0.0%

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Summaries

FIVE YEAR FINANCIAL PLAN, CONTINUED FOR FISCAL YEARS 2018-2022

FIVE YEAR CAPITAL IMPROVEMENT AND CAPITAL FINANCING PLAN

FOR FISCAL YEARS 2018 - 2022

Estimated five- year Description 2018 2019 2020 2021 2022 expenditures Water Projects Ongoing and critical projects Distribution pipe replacement/ water main extension 4,000,000 4,500,000 5,000,000 5,500,000 5,500,000 24,500,000 Transmission main improvements-C-905 Key Largo 8,000,000 8,000,000 Transmission main bridge crossing over C-111 Canal 1,800,000 1,800,000 Tranmission system replacement 2,000,000 2,000,000 2,000,000 6,000,000 Distribution 4mg storage tank improvements- Marathon 1,500,000 500,000 2,000,000 Service buildings - Marathon 1,000,000 1,000,000 2,000,000 Tranmission main replacement- Grassy Key, Islamorada 1,500,000 1,000,000 2,500,000 Transmission main underneath Snake Creek 1,000,000 5,000,000 6,000,000 Cathodic protection, metal piping, tanks 500,000 250,000 250,000 250,000 1,250,000 Valve replacement program- Key West 300,000 300,000 200,000 200,000 200,000 1,200,000 Control valves for distribution tanks 150,000 150,000 300,000 Gateway meter reading data collectors 333,000 335,000 335,000 1,003,000 System resiliency projects Pipe materials for near-term bridge failure 100,000 100,000 New seawater reverse osmosis plant - Stock Island 11,000,000 20,000,000 7,000,000 38,000,000 Transmission main under Niles channel 1,000,000 6,500,000 7,500,000 Navy projects Water mains, hydrants and meters - Sigsbee 550,000 550,000 550,000 550,000 2,200,000 Demo/Replace water storage tank- C69 Trumbo Point 550,000 550,000 Priority but non-critical projects Five million gallon water storage tank- Florida City 400,000 1,600,000 2,000,000 Field office - Ramrod Key 300,000 300,000 600,000 Florida City servers room 250,000 250,000 Fire suppression and protection for critical facilities 100,000 100,000 100,000 300,000 Hexametaphosphate feed system 250,000 200,000 450,000 Total water projects 29,883,000 31,135,000 30,235,000 9,000,000 8,250,000 108,503,000

Wastewater Projects Collection system improvements - Key Haven 4,000,000 4,000,000 Connection of Navy system to Big Coppitt 1,100,000 1,100,000 Big Coppitt plant expansion (for Navy) 3,000,000 2,000,000 5,000,000 Onsite wastewater program 500,000 270,000 770,000 Collection system R/R, system wide 250,000 250,000 500,000 500,000 500,000 2,000,000 Total wastewater projects 8,850,000 2,520,000 500,000 500,000 500,000 12,870,000

Total capital improvement projects $ 38,733,000 $ 33,655,000 $ 30,735,000 $ 9,500,000 $ 8,750,000 $ 121,373,000

Funding sources Funds from retail rates and cash on hand $ 20,983,000 $ 13,105,000 $ 23,185,000 $ 8,950,000 $ 8,200,000 $ 74,423,000 Navy water rates 1,650,000 550,000 550,000 550,000 550,000 3,850,000 State appropriations ------Bond proceeds 16,100,000 20,000,000 7,000,000 - - 43,100,000

Total $ 38,733,000 $ 33,655,000 $ 30,735,000 $ 9,500,000 $ 8,750,000 $ 121,373,000

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Summaries

FIVE YEAR FINANCIAL PLAN, CONTINUED FOR FISCAL YEARS 2018-2022 PROJECTED NEW DEBT ISSUES AND DEBT SERVICE

FOR FISCAL YEARS 2018 - 2022 2018 2019 2020 2021 2022 Bond issuance assumptions: Projected principal amount of new bonds issued $ 50,902,000 $ - $ - $ - $ - Available for construction fund $ 50,000,000 $ - $ - $ - $ - Estimated issue costs $ 902,000 Projected interest rate 4.16% Amortization period (years) 30

Projected Debt Service Principal Series 2008 water refunding and revenue bonds - - - - - Series 2012 wastewater revenue bonds 355,000 355,000 355,000 355,000 360,000 Series 2013A water refunding bonds 2,510,000 2,510,000 2,465,000 2,615,000 2,640,000 Series 2013B water revenue bonds 315,000 315,000 325,000 335,000 350,000 Series 2014A water revenue bonds 110,000 110,000 115,000 120,000 120,000 Series 2015A water refunding bonds - - - 245,000 245,000 Series 2015B water refunding bonds 835,000 835,000 855,000 640,000 630,000 Series 2016 wastewater bonds 220,000 130,000 140,000 145,000 150,000 Series 2018 water bonds - - - - -

Total principal 4,345,000 4,255,000 4,255,000 4,455,000 4,495,000 Interest Series 2008 water refunding and revenue bonds [1] 1,997,000 1,997,000 1,997,000 1,992,000 1,997,000 Series 2012 wastewater revenue bonds 117,000 117,000 108,000 97,000 86,000 Series 2013A water refunding bonds 169,000 169,000 128,000 86,000 43,000 Series 2013B water revenue bonds 232,000 232,000 221,000 210,000 210,000 Series 2014A water revenue bonds 81,000 81,000 77,000 73,000 68,000 Series 2015A water refunding bonds 1,340,000 1,340,000 1,340,000 1,340,000 1,340,000 Series 2015B water refunding bonds 414,000 414,000 393,000 372,000 355,000 Series 2017 wastewater bonds 169,000 437,000 430,000 423,000 415,000 Series 2018 water bonds 1,226,000 2,251,000 2,251,000 2,251,000 2,251,000

Total interest 5,745,000 7,038,000 6,945,000 6,844,000 6,765,000

Total projected debt service $ 10,090,000 $ 11,293,000 $ 11,200,000 $ 11,299,000 $ 11,260,000

[1] Includes ancillary costs of remarketing and letter of credit fees

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Summaries

FIVE YEAR FINANCIAL PLAN, CONTINUED FOR FISCAL YEARS 2018-2022 PROJECTED DEBT SERVICE COVERAGE

FOR FISCAL YEARS 2018 - 2022

Water Operations 2018 2019 2020 2021 2022 Funds available for debt service Operating revenue $ 53,917,000 $ 57,902,000 $ 59,352,000 $ 60,839,000 $ 62,365,000 Interest income 300,000 300,000 300,000 300,000 300,000 Other income 510,000 516,000 522,000 528,000 535,000 Less operating expenses (37,093,700) (37,683,200) (38,024,500) (38,368,200) (38,715,300)

Net funds available for debt coverage $ 17,633,300 $ 21,034,800 $ 22,149,500 $ 23,298,800 $ 24,484,700

Debt service requirements $ 9,229,000 $ 10,254,000 $ 10,167,000 $ 10,279,000 $ 10,249,000

Coverage factor (minimum of 1.10 required) 1.91 2.05 2.18 2.27 2.39

System development charges $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 Coverage factor with system development charges (minimum of 1.20) 2.02 2.15 2.28 2.36 2.49

Wastewater Operations 2018 2019 2020 2021 2022 Funds available for debt service Operating revenue $ 9,177,000 $ 9,417,000 $ 9,663,000 $ 9,915,000 $ 10,174,000 Interest income - - - - - Other income - - - - - Less operating expenses (7,259,900) (7,113,800) (7,220,500) (7,328,800) (7,438,700)

Net funds available for debt coverage $ 1,917,100 $ 2,303,200 $ 2,442,500 $ 2,586,200 $ 2,735,300

Debt service requirements $ 861,000 $ 472,000 $ 463,000 $ 452,000 $ 446,000

System development charges $ 138,000 $ 138,000 $ 138,000 $ 138,000 $ 138,000

Coverage factor with system development charges (minimum of 1.20) 2.39 5.17 5.57 6.03 6.44

Note: Wastewater bonds have no requirement to meet both 1.10 and 1.20 tests. Therefore, only the 1.20 result is shown.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Financial Summaries

FIVE YEAR FINANCIAL PLAN, CONTINUED FOR FISCAL YEARS 2018-2022 ESTIMATED RATE ADJUSTMENTS AND AVERAGE MONTHLY BILL

Potable water Estimated Average monthly bill percentage increase (for 4,500 gallons) Current Bill $ 40.81 Estimated October 1, 2017 7.00% $ 43.66 Estimated October 1, 2018 7.00% $ 46.72 Estimated October 1, 2019 1.00% $ 47.18 Estimated October 1, 2020 1.00% $ 47.66 Estimated October 1, 2021 1.00% $ 48.13

Reclaimed water Estimated Average monthly bill percentage increase (for 1,100 gallons) Current Bill $ 3.26 Estimated October 1, 2017 7.00% $ 3.49 Estimated October 1, 2018 7.00% $ 3.73 Estimated October 1, 2019 1.00% $ 3.77 Estimated October 1, 2020 1.00% $ 3.81 Estimated October 1, 2021 1.00% $ 3.85

Wastewater Estimated Average monthly bill percentage increase (for 4,500 gallons) Current Bill $ 65.36 Estimated October 1, 2017 2.00% $ 66.66 Estimated October 1, 2018 2.00% $ 68.00 Estimated October 1, 2019 1.00% $ 68.68 Estimated October 1, 2020 1.00% $ 69.36 Estimated October 1, 2021 1.00% $ 70.06

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

Capital Improvement Budget

Project Summaries

Capital Outlay Budget Detail

Capital Financing Plan Summary

Debt Service Requirements

Debt Service Coverage Analysis

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

CAPITAL IMPROVEMENT BUDGET FOR FISCAL YEAR 2018-2022

FOR FISCAL YEARS 2018 - 2022

Estimated five- year Description 2018 2019 2020 2021 2022 expenditures Water Projects Ongoing and critical projects Distribution pipe replacement/ water main extension 4,000,000 4,500,000 5,000,000 5,500,000 5,500,000 24,500,000 Transmission main improvements-C-905 Key Largo 8,000,000 8,000,000 Transmission main bridge crossing over C-111 Canal 1,800,000 1,800,000 Tranmission system replacement 2,000,000 2,000,000 2,000,000 6,000,000 Distribution 4mg storage tank improvements- Marathon 1,500,000 500,000 2,000,000 Service buildings - Marathon 1,000,000 1,000,000 2,000,000 Tranmission main replacement- Grassy Key, Islamorada 1,500,000 1,000,000 2,500,000 Transmission main underneath Snake Creek 1,000,000 5,000,000 6,000,000 Cathodic protection, metal piping, tanks 500,000 250,000 250,000 250,000 1,250,000 Valve replacement program- Key West 300,000 300,000 200,000 200,000 200,000 1,200,000 Control valves for distribution tanks 150,000 150,000 300,000 Gateway meter reading data collectors 333,000 335,000 335,000 1,003,000 System resiliency projects Pipe materials for near-term bridge failure 100,000 100,000 New seawater reverse osmosis plant - Stock Island 11,000,000 20,000,000 7,000,000 38,000,000 Transmission main under Niles channel 1,000,000 6,500,000 7,500,000 Navy projects Water mains, hydrants and meters - Sigsbee 550,000 550,000 550,000 550,000 2,200,000 Demo/Replace water storage tank- C69 Trumbo Point 550,000 550,000 Priority but non-critical projects Five million gallon water storage tank- Florida City 400,000 1,600,000 2,000,000 Field office - Ramrod Key 300,000 300,000 600,000 Florida City servers room 250,000 250,000 Fire suppression and protection for critical facilities 100,000 100,000 100,000 300,000 Hexametaphosphate feed system 250,000 200,000 450,000 Total water projects 29,883,000 31,135,000 30,235,000 9,000,000 8,250,000 108,503,000

Wastewater Projects Collection system improvements - Key Haven 4,000,000 4,000,000 Connection of Navy system to Big Coppitt 1,100,000 1,100,000 Big Coppitt plant expansion (for Navy) 3,000,000 2,000,000 5,000,000 Onsite wastewater program 500,000 270,000 770,000 Collection system R/R, system wide 250,000 250,000 500,000 500,000 500,000 2,000,000 Total wastewater projects 8,850,000 2,520,000 500,000 500,000 500,000 12,870,000

Total capital improvement projects $ 38,733,000 $ 33,655,000 $ 30,735,000 $ 9,500,000 $ 8,750,000 $ 121,373,000

Funding sources Funds from retail rates and cash on hand $ 20,983,000 $ 13,105,000 $ 23,185,000 $ 8,950,000 $ 8,200,000 $ 74,423,000 Navy water rates 1,650,000 550,000 550,000 550,000 550,000 3,850,000 State appropriations ------Bond proceeds 16,100,000 20,000,000 7,000,000 - - 43,100,000

Total $ 38,733,000 $ 33,655,000 $ 30,735,000 $ 9,500,000 $ 8,750,000 $ 121,373,000

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

PROJECT SUMMARIES FOR FISCAL YEAR 2018-2022

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

UPGRADED SEAWATER TREATMENT - STOCK ISLAND Water Supply and Treatment

Project Information

Location Stock Island Project Type Water Supply and Treatment Category Resiliency Project Number 1150-17 Design Engineer Carollo Project Manager Jolynn Reynolds Contractor Wharton Smith Start Date 2016 Completion Date 2020 Bond Funded Yes Facilities Master Plan Project Yes

Description/Justification:

The existing 2 Million Gallon per Day (MGD) Stock Island Reverse Osmosis(SIRO) is maintenance intensive, lacks reliability, and fails to meet production goals. To promote public health and safety, the goal of this project is develop a water production facility on Stock Island that will produce up to 4 MGD during emergency conditions, provide system reliability, new equipment, and membrane technology.

Status/Recent Developments:

Alternative Analysis is underway.

Financial Information:

Capital Funding: Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ 11,000,000 $ 20,000,000 $ 7,000,000 $ - $ - $ 38,000,000 - - - - - Total Costs $ 11,000,000 $ 20,000,000 $ 7,000,000 $ - $ - $ 38,000,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs ------Total Operating Costs $ - $ - $ - $ - $ - $ -

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

ONSITE WASTEWATER TREATMENT PROGRAM Wastewater Improvements

Project Information

Location Various locations Project Type Wastewater System Category Wastewater Improvements Project Number 4029-09 Design Engineer Various Consultants Project Manager Joshua Peele Contractor Various Contractors Start Date 2017 Completion Date 2019 Bond Funded No Facilities Master Plan Project Yes

Description/Justification:

The Authority and Environmental Protection Agency have collaborated through a grant program to address locations that are not feasible to connect to the central wastewater system. The Authority will design, permit, construct, and operate the onsite systems as part of the wastewater program.

Status/Recent Developments:

The first group of ten (10) onsite wastewater system are under construction.

Financial Information:

Capital Funding: Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ 500,000 $ 270,000 $ - $ - $ - $ 770,000 - - - - - Total Costs $ 500,000 $ 270,000 $ - $ - $ - $ 770,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs ------Total Operating Costs $ - $ - $ - $ - $ - $ -

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

METER READING DATA COLLECTORS Water System Improvements

Project Information

Location System-wide Project Type Water System Category Water System Improvments Project Number 2337-17 Design Engineer In-house Personel Project Manager Justin Dacey Contractor In-house Personel Start Date 2017 Completion Date 2019 Bond Funded No Facilities Master Plan Project Yes

Description/Justification:

The installation of the meter reading data collectors will provide real-time meter reading to enhance water loss recovery, improve response time for stuck meter, high consumption, etc., allow customers to "View My Meter" to identify leaks on the customer side, and enhance water conservation efforts.

Status/Recent Developments:

Plan in place for installation of collectors through remainder of 2017.

Financial Information:

Capital Funding: Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ 333,000 $ 335,000 $ 335,000 $ - $ 1,003,000 - - - - - Total Costs $ 333,000 $ 335,000 $ 335,000 $ - $ - $ 1,003,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs ------Total Operating Costs $ - $ - $ - $ - $ - $ -

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

TRANSMISSION MAIN ACROSS NILES CHANNEL Transmission System Resiliency

Project Information

Location Niles Channel Project Type Water Transmission System

Category Resiliency Project Number 1156-17 Design Engineer To be determined Project Manager Ray Shimokubo Contractor To be determined Start Date 2019 Completion Date 2020 Bond Funded No Facilities Master Plan Project Yes

Description/Justification:

The 24" water transmission main is an extremely critical part of FKAA's infrastructure. It runs inside the Niles Channel Bridge. To increase reliability and reduce system vulnerability, a parallel pipe is planned to be constructed via horizontal directional drilling below bridge which crosses the channel at this location.

Status/Recent Developments:

Financial Information:

Capital Funding: Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ - $ 1,000,000 $ 6,500,000 $ - $ - $ 7,500,000 - - - - - Total Costs $ - $ 1,000,000 $ 6,500,000 $ - $ - $ 7,500,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs ------Total Operating Costs $ - $ - $ - $ - $ - $ -

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

TRANSMISSION MAIN CROSSING - SNAKE CREEK Transmission Main Resiliency

Project Information

Location Snake Creek Project Type Water Transmission System Category Resiliency Project Number 1155-17 Design Engineer To Be Determined Project Manager Ray Shimokubo Contractor To Be Determined Start Date 2018 Completion Date 2019 Bond Funded No Facilities Master Plan Project Yes

Description/Justification:

The 30" water transmission main is an extremely critical part of FKAA's infrastructure. It crosses under the Snake Creek canal as a submerged pipeline section under the draw bridge; one of only two remaining under deep waterways on the entire transmission system. To increase reliability and reduce system vulnerability, a parallel pipe is planned to be constructed via horizontal directional drilling below the US1 draw bridge which crosses the channel at this location.

Status/Recent Developments:

Financial Information:

Capital Funding:

Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ - $ 1,000,000 $ 5,000,000 $ - $ - $ 6,000,000 - - - - - Total Costs $ - $ 1,000,000 $ 5,000,000 $ - $ - $ 6,000,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs - - (4,000) (4,000) (4,000) (12,000) Total Operating Costs $ - $ - $ (4,000) $ (4,000) $ (4,000) $ (12,000)

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

Control Valves for Tanks Storage Tanks

Project Information

Location Entire System Project Type Transmission System Category Water System Improvements Project Number 1146-16 Design Engineer In-house Project Manager Ray Shimokubo Contractor In-house Start Date 2016 Completion Date 2018 Bond Funded No Facilities Master Plan Project Yes

Description/Justification:

The objective of the Flow Control System is to pace the tarteted flow to each tank facility by modulating the actuated flow control valve based on the flow reported by the flow meter. The goal is to minimize extreme flow and pressure fluctuations that can often result in higher energy usage and unforeseen damage to the water infrastructure.

Status/Recent Developments:

Efforts to date with in-house staff has shown good results with flow regime.

Financial Information:

Capital Funding:

Five Year Plan

2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ 150,000 $ 150,000 $ - $ - $ - $ 300,000 - - - - - Total Costs $ 150,000 $ 150,000 $ - $ - $ - $ 300,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs (35,000) (35,000) (35,000) (35,000) (35,000) (175,000) Total Operating Costs $ (35,000) $ (35,000) $ (35,000) $ (35,000) $ (35,000) $ (175,000)

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

CATHODIC PROTECTION Transmission Main Protection

Project Information

Location Various Sections of Transmission Project Type Transmission System Category Renewal and Replacement Project Number 1151-17 Design Engineer CH2M Hill Project Manager Jim Brewster Contractor To Be Determined Start Date 2017 Completion Date 2021 Bond Funded No Facilities Master Plan Project Yes

Description/Justification:

The water transmission system includes 187 miles of high pressure pipe which is primarily made of metal. The steel pipe has a series of Cathodic Protection (CP) devices to keep the steel from corrosive deterioation. This CP system is in need of assessment and repair.

Status/Recent Developments:

CH2M Hill currently performing assessment and design of CP systems on FKAA's water transmission mains.

Financial Information:

Capital Funding: Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ 500,000 $ 250,000 $ 250,000 $ 250,000 $ - $ 1,250,000 - - - - - Total Costs $ 500,000 $ 250,000 $ 250,000 $ 250,000 $ - $ 1,250,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs ------Total Operating Costs $ - $ - $ - $ - $ - $ -

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

DISTRIBUTION REPLACEMENT Distribution System

Project Information

Location Various Project Type Distribution System Category Renewal and Replacement Project Number Various Design Engineer In-house Design Team Project Manager Several assignments to staff engineers Contractor In-house crew and several contractors Start Date Ongoing Completion Date Ongoing Bond Funded No Facilities Master Plan Project Yes

Description/Justification:

Replacement of several sections of pipes and ancillary components of the water distribution system throughout the entire service area that have reached the end of their useful life and are now prone to unpredictable failure. The five-year costs below include projects that may need to be accelerated due to Florida Department of Transportation and municipal wastewater projects that are scheduled to take place in same rights-of-way.

Status/Recent Developments:

Several distribution system upgrades are currently being designed and constructed for execution following careful evaluation of the cost benefit analysis and prioritization of projects.

Financial Information:

Capital Funding: Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ 4,000,000 $ 4,500,000 $5,000,000 $ 5,500,000 $ 5,500,000 $24,500,000 ------Total Costs $ 4,000,000 $ 4,500,000 $5,000,000 $ 5,500,000 $ 5,500,000 $24,500,000

Operating Impact: Annual Operating Costs (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Cost Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs ------Total Operating Costs $ - $ - $ - $ - $ - $ -

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

TRANSMISSION MAIN IMPROVEMENTS-C-905 KEY LARGO Transmission

Project Information

Location N. Key Largo Project Type Transmission System Category Renewal and Replacement Project Number 1152-17 Design Engineer In-house Project Manager Ray Shimokubo Contractor TBD Start Date 2017 Completion Date 2018 Bond Funded No Facilities Master Plan Project Yes

Description/Justification:

The transmission pipeline along C905 provides water to Ocean Reef and homes in the vicinity. Approximately 18,000 feet of 12"WM has become compromised from groundwater and bedding issues. Several breaks have occurred. Also, the hydraulics of this 12"WM are restrictive and need to be upsized for improved demand delivery.

The project is anticipated to be completed in two phases to allow work to begin as soon as funding and design work is complete.

Status/Recent Developments:

Phase one is under construction. Phase 2 is under design.

Financial Information:

Capital Funding:

Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ 8,000,000 $ - $ - $ - $ - $ 8,000,000

Total Costs $ 8,000,000 $ - $ - $ - $ - $ 8,000,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Cost Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs (5,000) (12,000) (12,000) (12,000) - Total Operating Costs $ (5,000) $ (12,000) $ (12,000) $ (12,000) $ - $ (41,000)

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

TRANSMISSION LINE BRIDGE CROSSING AT C-111 CANAL-18 MILE STRETCH Transmission Resiliency

Project Information

Location 18-mile stretch Project Type Transmission System Category Resiliency Project Number 1137-15 Design Engineer Aecom Project Manager Jolynn Reynolds Contractor None selected Start Date 2017 Completion Date 2018 Bond Funded No Facilities Master Plan Project Yes

Description/Justification:

The 36" water transmission main is an extremely critical part of FKAA's infrastructure. It crosses under the C-111 canal (lower peninsula) as a submerged pipeline section; one of only two remaining under deep waterways on the entire transmission system. To increase reliability and reduce system vulnerability, a parallel pipe is planned to be installed beneath the canal via Horizontal Directional Drilling method.

Status/Recent Developments:

This project is under design and permitting.

Financial Information:

Capital Funding: Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ 1,800,000 $ - $ - $ - $ - $ 1,800,000

Total Costs $ 1,800,000 $ - $ - $ - $ - $ 1,800,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Cost Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs - (2,000) (2,000) (2,000) (2,000) (8,000) Total Operating Costs $ - $ (2,000) $ (2,000) $ (2,000) $ (2,000) $ (8,000)

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

MARATHON SERVICE BUILDINGS Renewal & Replacement

Project Information

Location Marathon Project Type Vertical Building Category Renewal & Replacement Project Number 3211-16 Design Engineer To Be Determined Project Manager Marnie Walterson Contractor To Be Determined Start Date 2017 Completion Date 2019 Bond Funded No Facilities Master Plan Project Yes

Description/Justification:

Currently, FKAA has 15+ field and office staff located in small, out-dated structures on the 33rd Street campus. A new building is needed to improve working conditions and efficiencies of operations at this location. The building is also being planned to provide a welding shop, storage, a conference room and lunch room. This project will also include renovations and improvements to the Customer Service Building.

Status/Recent Developments:

Financial Information:

Capital Funding: Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ 1,000,000 $ 1,000,000 $ - $ - $ - $ 2,000,000 - - - - - Total Costs $ 1,000,000 $ 1,000,000 $ - $ - $ - $ 2,000,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Cost Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs - (10,000) (10,000) (15,000) - (35,000) Total Operating Costs $ - $ (10,000) $ (10,000) $ (15,000) $ - $ (35,000)

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

MARATHON 4 MG STORAGE TANK, DISTRIBUTION PUMP STATION IMPROVEMENTS Renewal & Replacement

Project Information

Location Marathon Booster Pump Station Project Type Water System Category Renewal and Replacement Project Number 1134-15 Design Engineer Mathews Consulting Project Manager Jolynn Reynolds NEED A PICTURE Contractor None Selected Start Date 2020 Completion Date 2021 Bond Funded No Facilities Master Plan Project Yes

Description/Justification:

There is an existing 3.0 Million Gallon (MG) concrete tank located at the Marathon Booster Pump Station that was built in 1974. The 3.0 MG tank is used for both distribution supply and emergency events that require back-pumping water from the tank to transmission pipeline. During the tank inspection in 2010, the tank was noted to be in fair condition with numerous settling cracks along with indications of leakage. Subsequently, repairs were made to the tank, but there are indications that leakage is still occurring. This proposed project will replace the 3MG tank with a 4 MG tank providing additional storage for distribution supply and emergency events and upgrade the distribution pump station.

Status/Recent Developments:

Final Design has been completed.

Financial Information:

Capital Funding: Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ - $ - $ 1,500,000 $ 500,000 $ - $ 2,000,000

Total Costs $ - $ - $ 1,500,000 $ 500,000 $ - $ 2,000,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Cost Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs ------Total Operating Costs $ - $ - $ - $ - $ - $ -

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

VALVE REPLACEMENT PROGRAM RENEWAL AND REPLACEMENT

Project Information

Location Entire System Project Type Water System Category Renewal and Replacement Project Number 2336-17 Design Engineer In-house Project Manager Tom Morgan Contractor In-house Start Date 2018 Completion Date 2022 Bond Funded No Facilities Master Plan Project Yes

Description/Justification:

The Authority has identified valves that are in need of replacement. This project will require the installation of new valves that will be used to isolate sections of main for repair of leaks, maintenance, and leak survey.

Status/Recent Developments:

Staff is evaluating Key West to prioritize 1st phase of valve installation program.

Financial Information:

Capital Funding: Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ 300,000 $ 300,000 $ 200,000 $ 200,000 $ 200,000 $ 1,200,000

Total Costs $ 300,000 $ 300,000 $ 200,000 $ 200,000 $ 200,000 $ 1,200,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Cost Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs ------Total Operating Costs $ - $ - $ - $ - $ - $ -

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

US NAVY SYSTEM UPGRADES Distribution System

Project Information

Location Navy properties in lower Keys Project Type Distribution System Category Renewal and Replacement Project Number 8000 series Design Engineer In-house Design Team/Consultants Project Manager Assignments to staff engineers Contractor In-house crew and others Start Date 2008 Completion Date Ongoing Funding Revenue from Navy contract Facilities Master Plan ProjectNo

Description/Justification:

The Authority entered into a contract in January 2008 to own and operate the Navy's water distribution systems in the Keys. Many of the lines are reaching end of life, water tanks need maintenance and valves and/or replacement other infrastructure is lacking. Revenue from the Navy includes funding for renewal and replacement that will be sufficient to fund the following upgrades through 2020.

Replace piping at Boca Chica Demolition and Replacement of the 0.5MG Trumbo Tank Replace piping at Sigsbee Park

Status/Recent Developments:

Ongoing through 2020

Financial Information:

Capital Funding: Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ - $ 550,000 $ 550,000 $ 550,000 $ 550,000 $ 2,200,000

Total Costs $ - $ 550,000 $ 550,000 $ 550,000 $ 550,000 $ 2,200,000

Operating Impact: Annual Operating Costs (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Cost Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs - - - - - Total Operating Costs $ - $ - $ - $ - $ - $ -

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

NAVY WW PRIVITIZATION-BIG COPPITT CONNECTION/EXPANSION Navy Improvements

Project Information

Location Boca Chica WWTP to Big Coppitt WWTP Project Type Wastewater System Category Wastewater System Improvements Project Number 4062-16 Design Engineer Chen-Moore & Associates Need picture Project Manager Ray Shimokubo Contractor Charley Toppino & Sons Start Date 2016 Completion Date 2017 Bond Funded No Facilities Master Plan Project Revenue from Navy

Description/Justification:

The Authority entered into a contract in 2015 to own and operate the Navy's Wastewater Treatment and Collection Systems in the Keys. In the inital years, the plan is to decommision the Boca Chica WWTP and transfer the flow to the existing Big Coppitt WW Reclamation Facility. Project will be funded through Navy Revenue.

Status/Recent Developments:

Information not available at time of publication

Financial Information:

Capital Funding: Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ 1,100,000 $ - $ - $ - $ - $ 1,100,000

Total Costs $ 1,100,000 $ - $ - $ - $ - $ 1,100,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Cost Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs ------Total Operating Costs $ - $ - $ - $ - $ - $ -

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

KEY HAVEN WASTEWATER SYSTEM IMPROVEMENTS COLLECTION AND TREATMENT

Project Information

Location Key Haven Collection/Transmission Project Type Wastewater System Category Renewal and Replacement/Extension Project Number 4058-15/4070-17 Design Engineer Various Consultants Project Manager Ray Shimokubo Contractor Various Contractors Start Date 2016 Completion Date 2018 Bond Funded Grant/Assessment Facilities Master Plan Project Yes

Description/Justification:

This project includes the replacement of the wastewater collection system on Key Haven and the conveyance of the wastewater from Key Haven to the Boca Chica equalization basin that is being constructed under a different project. This will allow the decommissioning fo the Key Haven Wastewater Treatment Plant.

Status/Recent Developments:

Project4058-15 is under construction and Project 4070-17 is under design.

Financial Information:

Capital Funding:

Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ 4,000,000 $ - $ - $ - $ - $ 4,000,000

Total Costs $ 4,000,000 $ - $ - $ - $ - $ 4,000,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Cost Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs ------Total Operating Costs $ - $ - $ - $ - $ - $ -

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

BIG COPPITT WASTEWATER RECLAMATION FACILITY EXPANSION Treatment and Reclaimed Water

Project Information

Location Big Coppitt WWTP Project Type Wastewater System Category WWTP Expansion Project Number 4069-17 Design Engineer Brown & Caldwell Project Manager Ray Shimokubo Contractor To be determined Start Date 2017 Completion Date 2018 Bond Funded No Facilities Master Plan Project Yes

Description/Justification:

The Big Coppitt Wastewater Reclamation Facility is being expanded to accommodate the wastewater flows from Boca Chica Wastewater Treatment Plant. This will allow the Boca Chica Wastewater Treatment Plant to be decommissioned and re-purposed as a equalization tank to receive wastewater flows from Key Haven collection/transmission system.

Status/Recent Developments:

This project is under design.

Financial Information:

Capital Funding: Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ 3,000,000 $ 2,000,000 $ - $ - $ - $ 5,000,000

Total Costs $ 3,000,000 $ 2,000,000 $ - $ - $ - $ 5,000,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Cost Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs ------Total Operating Costs $ - $ - $ - $ - $ - $ -

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

TRANSMISSION MAIN REPLACEMENT Renewal and Replacement

Project Information

Location Grassy Key Project Type Transmission System Category Renewal and Replacement Project Number 1154-17 Design Engineer To be determined Project Manager Jolynn Reynolds Contractor To be determined Start Date 2017 ` Completion Date 2018 Bond Funded No Facilities Master Plan ProjectYes

Description/Justification:

There have been several leaks on the transmission system in Grassy Key. An area of approximately 1 to 2- miles has been identified in Grassy Key for replacement.

Status/Recent Developments: Pipeline condition assessmentperfirmed to determin extent of replacement in Grassy Key.

Financial Information: Capital Funding: Five Year Plan 2018 2019 2020 2021 2022 Total Cost Capital Engineering & Construction Costs $ 1,500,000 $ 1,000,000 $ - $ - $ - $ 2,500,000

Total Costs $ 1,500,000 $ 1,000,000 $ - $ - $ - $ 2,500,000

Operating Impact: Annual Operating Cost (Savings) New Personnel (FTEs) 2018 2019 2020 2021 2022 Total Cost Personal Services Costs $ - $ - $ - $ - $ - $ - Other Operating Costs ------Total Operating Costs $ - $ - $ - $ - $ - $ -

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

CAPITAL OUTLAY BUDGET DETAIL FOR FISCAL YEAR 2018

Water cost Wastewater Amount Total centers cost centers Executive Division Executive 1011 Executive Office None $ - $ - 1012 Public Information None - - $ -

Administration Division Customer Service 3030 Customer Service Administration None - - 3031 Central Payment Processing None - - 3032 Customer Service-Key West None - - 3034 Customer Service-Marathon None - - 3035 Customer Service-Tavernier None - - 3037 Field Services-Key West None - - 3038 Field Services-Marathon None - - 3039 Field Services-Tavernier None - - - Finance 6010 Finance None - - 6020 Billing None - - 6030 Purchasing and Inventory None - - 6040 Records None - - - Human Resources 7010 Human Resources None - - - - - Information Technology 8010 Information Technology Virtual environment upgrade 100,000 Backup solutions 95,000 Microsoft Office upgrades 86,000 Camera system upgrade 60,000 Network switches (10) 50,000 Network management software 50,000 Servers (3) 45,000 Storage, disk enclosures (3) 45,000 GIS aerials (pictometry) 10,000 541,000 541,000 Utility Operations Division

Engineering 2021 General Engineering None - - 2022 Contract Management Schondstedt locater (Cudjoe) 2,000 Hydrant flow kit 1,800 Aries seeker sewer camera (replacement) 12,000 15,800 2023 Water Quality Backflow repair building 15,000 Vacuum pit cleaner (new) 18,000 33,000 2024 Design None - - 2025 Construction Crew Caterpillar 926M wheel loader (replacement) 167,000 Assorted construction MOT signs/barricades/cones 12,000 Repair/replace Rockland Key construction yard roof 80,000 259,000 2027 Water Data Management and Loss Division New meter installations 180,000 New leak detection equipment 4,000 Small meter 28,000 Large meter 50,000 Backflow meter change out program 76,000 338,000 645,800 Operations 4001 Operations Office Key West Hurricane shutters 29,000 29,000 4101 Operations Office Stock Island/lower keys Self contained breathing apparatus 8,400 8,400 4102 Distribution/Maintenance-Area I Sign board (replacement) 15,800 76 | P a g e Dump trailer (new) 14,000 29,800 4103 Distribution/Maintenance-Area II Tap 86 4" pipe and valve upgrade 14,000 Tap 94 4" pipe and valve upgrade 14,000 Tap 105 4" pipe and valve upgrade 14,000 Tap 126 4" pipe and valve upgrade 14,000 Tap 163 4" pipe and valve upgrade 14,000 Tap 184 4" pipe and valve upgrade 14,000 Tap 185 4" pipe and valve upgrade 14,000 Tap 230 4" pipe and valve upgrade 14,000 Tap 231 4" pipe and valve upgrade 14,000 Tap 57 3" pipe and valve upgrade 11,000 Tap 203 3" pipe and valve upgrade 11,000 Tap 216 3" pipe and valve upgrade 11,000 Backhoe trailer (replacement 872) 21,000 Vac trailer (new) 90,000 Trencher trailer (new) 8,500 Dump Trailer (new) 14,000 Hydraulic chainsaw (new) 4,500 Trencher (new) 92,000 Service truck air compressor (new) (3) 9,000 398,000 Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

CAPITAL OUTLAY BUDGET DETAIL, CONTINUED FOR FISCAL YEAR 2018

Operations 4001 Operations Office Key West Hurricane shutters 29,000 29,000 4101 Operations Office Stock Island/lower keys Self contained breathing apparatus 8,400 8,400 4102 Distribution/Maintenance-Area I Sign board (replacement) 15,800 Dump trailer (new) 14,000 29,800 4103 Distribution/Maintenance-Area II Tap 86 4" pipe and valve upgrade 14,000 Tap 94 4" pipe and valve upgrade 14,000 Tap 105 4" pipe and valve upgrade 14,000 Tap 126 4" pipe and valve upgrade 14,000 Tap 163 4" pipe and valve upgrade 14,000 Tap 184 4" pipe and valve upgrade 14,000 Tap 185 4" pipe and valve upgrade 14,000 Tap 230 4" pipe and valve upgrade 14,000 Tap 231 4" pipe and valve upgrade 14,000 Tap 57 3" pipe and valve upgrade 11,000 Tap 203 3" pipe and valve upgrade 11,000 Tap 216 3" pipe and valve upgrade 11,000 Backhoe trailer (replacement 872) 21,000 Vac trailer (new) 90,000 Trencher trailer (new) 8,500 Dump Trailer (new) 14,000 Hydraulic chainsaw (new) 4,500 Trencher (new) 92,000 Service truck air compressor (new) (3) 9,000 398,000 4104 Distribution Pump Station-Key West A/C unit (replacement) 10,000 10,000 4105 Distribution Pump Station-Stock Island Roof (electrical shop) 50,000 Control desk (new) 8,000 58,000 4108 Fleet Maintenance-lower keys Garage roof 75,000 Vehicles 460,000 535,000 4110 Stock Island Reverse Osmosis Plant None - - 4112 Bay Point Wastewater Treatment Plant LDO probe (new) (2) 3,700 Sumbersible mizer (replacement) (1) 7,200 10,900 4113 Bay Point Collection None - - 4114 Big Coppitt Wastewater Treatment LDO probe (new) (2) 3,700 Roots blower enclosures (new) (2) 15,800 Electrical valveactuator (replacement) (1) 5,000 Process blower enclosures (replacement) (2) 24,000 WAS pump (replacement) (1) 4,800 Hydroxide pump (replacement) (2) 18,000 71,300 4115 Big Coppitt Collection None - - 4116 Key Haven Wastewater Treatment None - - 4117 Key Haven Collection None - - 4118 Cudjoe Regional Wastewater Treatment Gas detector 4,000 4,000 4119 Cudjoe Regional Collection Power snakes (new) (2) 4,800 4,800 4120 Navy Wastewater System Pump (replacement) (3) 14,300 Pump (new) (spare) 17,300 31,600 4201 Operations Marathon/Middle keys None - - 4202 Distribution/Maintenance-Area III Air compressor (replacement) 2,800 Tap 63 2" valve upgrade 6,000 Tap 218 4" valve upgrade 10,600 Tap 100 2" pipe and valve upgrade 11,200 Tap 170 2" pipe and valve upgrade 11,200 Piping upgrade to Crawl Key and 69th street (2) 36,600 Tank access ladders (replacements) (4) 30,000 108,400 4203 Transmission Maintenance-Area III Arrow traffic management board (replacement) 5,800 Utility trailer (replacement) 3,300 Valves (replacement) (2) 66,000 Tap 68 2" pipe upgrade 3,500 Tap 180 2" pipe upgrade 3,500 Pedestrian guards (replacement) 10,000 Valve vacuum breaker (4) 15,200 107,300 4204 Transmission Pump Station-Marathon None - - 4205 Transmission Pump Station-Ramrod Fuel tank and cat walk (replacement) 77,000 A/C condensor and handler (Ramrod MCC room) 13,500 A/C condensor and handler (Ramrod pump office) 3,800 94,300 77 | P a g e

Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

CAPITAL OUTLAY BUDGET DETAIL, CONTINUED FOR FISCAL YEAR 2018

A/C condensor and handler (Ramrod MCC room) 13,500 A/C condensor and handler (Ramrod pump office) 3,800 94,300 4208 Fleet Maintenance-middle keys Vehicles 141,000 141,000 4210 Reverse Osmosis Plant-Marathon Overhead crane (replacement) 50,000 50,000 4213 Wastewater Treatment Plant-Duck Key None - - 4214 Wastewater Operations and Maintenance Liquid tight drying box 11,500 Dump trailer (new) 7,700 Non-potable tank trailer (new) 9,000 28,200 4216 Duck Key Collection Manhole repairs (4) 31,000 31,000 4301 Operations Key Largo and upper keys Gutters and installation, Tavernier Customer Service (new) 2,200 Tile, Tavernier Field Service Office (replacement) 4,200 6,400 4302 Distribution Maintenance Area IV Tank #1 vent, Islamorada (replacement) 6,000 Tank #2 vent, Islamorada (replacement) 8,600 Pipe locator 1,800 Tap 60 4" pipe and valve upgrade 14,000 Tap 61 4" pipe and valve upgrade 14,000 Tap 178 4" pipe and valve upgrade 14,000 Tap 209 4" pipe and valve upgrade 14,000 Tap 210 4" pipe and valve upgrade 14,000 Tap 48 3" pipe and valve upgrade 11,000 Tap 55 3" pipe and valve upgrade 11,000 Tap 199 3" pipe and valve upgrade 11,000 Tap 213 3" pipe and valve upgrade 11,000 Tap 31 2" pipe and valve upgrade 8,500 Tap 57 2" pipe and valve upgrade 8,500 Tap 111 2" pipe and valve upgrade 8,500 155,900 4303 Distribution Maintenance Area V Tank ladder, Ocean Reef (replacement) 21,300 Tanks vents, Ocean Reef (replacement) (3) 35,800 Tank vents, Rock Harbor (replacement) (1) 6,000 Tank vents, Tavernier (replacement) (1) 6,000 Pipe locator (new) 1,800 Tap 172 4" pipe and valve upgrade 14,000 Tap 173 4" pipe and valve upgrade 14,000 Tap 179 4" pipe and valve upgrade 14,000 Tap 206 4" pipe and valve upgrade 14,000 Tap 212 4" pipe and valve upgrade 14,000 Tap 225 4" pipe and valve upgrade 14,000 Tap 227 4" pipe and valve upgrade 14,000 Tap 228 4" pipe and valve upgrade 14,000 Tap 229 4" pipe and valve upgrade 14,000 Tap 236 4" pipe and valve upgrade 14,000 Tap 200 2" pipe and valve upgrade 8,500 219,400 4304 Transmission Maintenance Areas IV and V Arrow traffic management board (replacement) 4,400 Message board (new) 13,600 Plasma cutter (replacement) 3,200 Valve operator (replacement) 9,100 30,300 4308 Fleet Maintenance-upper keys Vehicle air conditioner reclaimer (replacement) 4,500 Vinyl curtain (new) 2,000 A/C installation (new) 13,200 Vehicles 226,000 245,700 4312 Wastewater Treatment Plant-Layton LDO probes (new) (2) 3,700 Influent EQ pump (replacement) 4,000 Jet motive (replacement) 9,500 WAS pump (replacement) (2) 4,800 22,000 4313 Layton Collection Lift station pump (spare) 4,700 State park grinder pump (spare) 1,800 6,500 5010 Water Treatment Plant-Florida City Decanter air dryer (replacement) 18,900 Chill water coil unit (replacement) 6,600 25,500 5020 Transmission Pump Station-Florida City Trash pumps (new) (2) 6,800 78 | P a g e Fire door 11,000 17,800 5030 Transmission Pump Station-Long Key None - - 5040 Transmission Pump Station-Key Largo Automatic gate, Long Key pump station (new) 5,600 5,600 5050 Florida City RO Plant None - 5060 Electrical and Instrumentation Controls Infrared camera 4,000 Flow meter 9,300 Pressure calibrator 12,000 Cudjoe wastewater well meter (replacement) (4) 21,600 Pipe bender 12,500 59,400 2,545,500

Total Capital Outlay $ 3,732,300 Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Capital and Debt

CAPITAL OUTLAY BUDGET DETAIL, CONTINUED FOR FISCAL YEAR 2018

5020 Transmission Pump Station-Florida City Trash pumps (new) (2) 6,800 Fire door 11,000 17,800 5030 Transmission Pump Station-Long Key None - - 5040 Transmission Pump Station-Key Largo Automatic gate, Long Key pump station (new) 5,600 5,600 5050 Florida City RO Plant None - 5060 Electrical and Instrumentation Controls Infrared camera 4,000 Flow meter 9,300 Pressure calibrator 12,000 Cudjoe wastewater well meter (replacement) (4) 21,600 Pipe bender 12,500 59,400 2,545,500

Total Capital Outlay $ 3,732,300

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CAPITAL FINANCING PLAN SUMMARY FOR FISCAL YEAR 2018 BACKGROUND

The Authority has developed a long-range capital financing plan that is intended to identify when bonds must be issued to fund capital projects. Since Monroe County will be funding all future capital costs relating to wastewater, this plan centers around the water system capital improvement plan.

The Authority’s ratings for water bonds are Aa3, A+, and AA- from Moody’s Investor Services, Standard and Poor’s, and Fitch Ratings, respectively. The Authority has no legal debt limits.

SUMMARY OF DEBT

Anticipated Budget Year Bond Issues No water bond issues are anticipated for the 2017 budget year. Water capital projects of about $10.8 million will be funded using available cash reserves revenue from a dedicated source such as assessments, state appropriations or, in the case of U.S. Navy projects, specific charges to that customer.

Wastewater projects owned by the Authority will be funded by a combination of existing cash reserves, state appropriations and the proceeds from a bond issue estimated to be around $10 million. The costs of completing the construction of the Cudjoe Regional wastewater system will be borne entirely by Monroe County.

Total projected outstanding debt at the end of budget year 2017 is estimated to be approximately $137 million and debt service is approximately $8.8 million.

EXISTING OUTSTANDING BOND ISSUES

Water Revenue and Revenue Refunding Bonds In October 2007, the Authority issued $53,975,000 in water revenue bonds with an average interest rate of 5.04%. Interest is payable on March 1 and September 1 of each year and principal is payable annually on September 1. The interest rates on the outstanding bonds range from 4.0% to 5.25%. The proceeds from these bonds were used to fund the Authority’s continuing capital improvement plan. In April, these bonds were advanced refunded by Series 2015A and 2015B bonds, with the proceeds escrowed to fund debt service on the Series 2007 bonds beginning in 2018.

In June 2008 the Authority issued $52,625,000 in water revenue refunding bonds. The 2008 bonds bear interest at a variable rate that is set each week when the bonds are remarketed (.07% at June 10, 2015). The proceeds from these bonds were used to refund Series 2006 bonds, which were insured by a failed bond insurer. The refunding was necessary in order to replace the bond insurer with a letter of credit. The interest rate swap that was entered into when the Series 2006 bonds were issued remains in place with the notional amount now tied to the Series 2008 bonds.

In July 2013, the Authority issued $19,900,000 in Series 2013A refunding revenue bonds to a bank. The proceeds from this issue were used to refund Series 2003 water revenue bonds. Interest is payable on March 1 and September 1 of each year and principal is payable annually on September 1. The bonds bear interest at a fixed rate of 1.64%. This issue resulted in an economic benefit to the Authority of about $2.6 million in savings.

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CAPITAL FINANCING PLAN SUMMARY, CONTINUED FOR FISCAL YEAR 2018

In November 2013, the Authority issued $7,700,000 in Series 2013B revenue bonds to a bank to partially fund water distribution line replacements that are being accelerated by wastewater line construction. In January 2014, the Authority issued $2,670,000 in Series 2014B bonds to the same bank to fully fund the project. Interest is payable on March 1 and September 1 of each year and principal is payable annually on September 1. Both series bear interest at a fixed rate of 3.52%.

In April 2015, the Authority issued $34,560,000 in Series 2015A bonds and $16,435,000 in Series 2015B bonds to advance-refund outstanding Series 2007 bonds maturing after 2018. The 2015A bonds have an effective interest rate of approximately 3.75% and the Series 2015B bonds bear interest at a rate of 2.52%.

Water revenue and revenue refunding bonds are issued under the Authority’s Resolution No. 03-12. The payment of the principal and interest on these bonds is collateralized by a pledge of and lien upon the net revenues derived from the operation of the Authority’s water utility and other monies including investments held in certain accounts established by the bond resolution. Under the bond resolution, the Authority will fix, establish, maintain and collect the water rates and revise the same from time to time, whenever necessary, that will always provide in each fiscal year, (a) net revenues adequate at all times to pay in each fiscal year at least one hundred ten percent (110%) of the annual debt service requirement becoming due in such fiscal year on each series of outstanding bonds and at least one hundred percent (100%) of any amounts required by the terms of the bond resolution to be deposited in the reserve account or reserve account insurance policy in such fiscal year, and (b) net revenues, together with impact fees deposited in the current account in the impact fees fund, adequate to pay at least one hundred twenty percent (120%) of the current annual debt service requirement becoming due in such fiscal year on the outstanding bonds. The rates will not be reduced to a level that would be insufficient to provide net revenues fully adequate for the purposes provided by the bond resolution.

Wastewater Revenue Bonds In September 2012, the Authority issued Series 2012 wastewater refunding revenue bonds to a bank in an amount of $5,635,000. The proceeds were used to refund Series 2001, 2004 and 2009 wastewater revenue bonds and bear interest at a fixed rate of 2.86% Principal payments are due annually on October 1 beginning on October 1, 2013 until 2029 at which time all outstanding principal is payable in full. Interest is payable on April 1 and October 1 of each year through 2029.

Wastewater revenue and revenue refunding bonds were issued under the Authority’s Resolution No. 00-20 adopted October 18, 2000 and Resolution No. 01-25 adopted September 19, 2001. The payment of the principal and interest on these bonds is collateralized by a pledge of and lien upon the net revenues derived from the operation of the Authority’s wastewater utility and other monies including investments held in certain accounts established by the bond resolution. Under the bond resolution, the Authority will fix, establish, maintain and collect the wastewater rates and revise the same from time to time, whenever necessary, that will always provide in each fiscal year, (a) net revenues adequate at all times to pay in each fiscal year at least one hundred ten percent (110%) of the annual debt service requirement becoming due in such fiscal year on each series of outstanding bonds or (b) net revenues, together with impact fees collected, adequate to pay at least one hundred twenty percent (120%) of the current annual debt service requirement becoming due in such fiscal year on the outstanding bonds. The rates will not be reduced to a level that would be insufficient to provide net revenues fully adequate for the purposes provided by the bond resolution.

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DEBT SERVICE REQUIREMENTS FOR FISCAL YEAR 2018

SUMMARY OF OUTSTANDING PRINCIPAL OF LONG TERM DEBT

Projected Projected outstanding 2018 proceeds 2018 budgeted outstanding principal, from issuance principal principal, 10/1/17 of debt payments 9/30/18 Series 2007 water revenue bonds $ 995,000 $ - $ - $ 995,000 Series 2008 water refunding and revenue bonds [1] 52,625,000 - - 52,625,000 Series 2012 wastewater revenue bonds 4,610,000 - 355,000 4,255,000 Series 2013A water refunding bonds 12,745,000 - 2,510,000 10,235,000 Series 2013B water revenue bonds 6,890,000 - 315,000 6,575,000 Series 2014A water revenue bonds 2,405,000 - 110,000 2,295,000 Series 2015A water refunding bonds 34,560,000 - - 34,560,000 Series 2015B water refunding bonds 16,435,000 835,000 835,000 16,435,000 Series 2016 wastewater revenue bonds 10,000,000 - 220,000 9,780,000 Series 2018 water revenue bonds [2] - 32,000,000 - 32,000,000

Total bonds $ 141,265,000 $ 32,835,000 $ 4,345,000 $ 169,755,000

SUMMARY OF DEBT SERVICE

Budgeted 2017 debt service Budgeted 2018 debt service Fixed / Variable Principal Interest Total Principal Interest Total

Series 2007 water revenue bonds Fixed $ 1,065,000 $ 53,000 $ 1,118,000 $ - $ - $ - Series 2008 water refunding and revenue bonds [1] Variable - 1,997,000 1,997,000 - 1,997,000 1,997,000 Series 2012 wastewater revenue bonds Fixed 350,000 127,000 477,000 355,000 117,000 472,000 Series 2013A water refunding bonds Fixed 2,465,000 210,000 2,675,000 2,510,000 169,000 2,679,000 Series 2013B water revenue bonds Fixed 305,000 243,000 548,000 315,000 232,000 547,000 Series 2014A water revenue bonds Fixed 105,000 84,000 189,000 110,000 81,000 191,000 Series 2015A water refunding bonds Fixed - 1,340,000 1,340,000 - 1,340,000 1,340,000 Series 2015B water revenue bonds Fixed - 414,000 414,000 835,000 414,000 1,249,000 Series 2016 wastewater revenue bonds Fixed 150,000 140,000 290,000 220,000 169,000 389,000 Series 2018 water revenue bonds Fixed - - - - 1,679,000 1,679,000

Total bonds $ 4,440,000 $ 4,608,000 $ 9,048,000 $ 4,345,000 $ 6,198,000 $ 10,543,000

[1] Includes ancillary costs of remarketing and letter of credit fees [2] Assumes delivery date of October 1, 2017

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DEBT SERVICE COVERAGE ANALYSIS FOR FISCAL YEAR 2018 PROJECTED DEBT SERVICE COVERAGE

Budgeted 2017 Budgeted 2018 Water Wastewater Water Wastewater

Revenue available for debt service Total operating revenue $ 50,146,000 $ 8,951,000 $ 51,353,000 $ 9,147,000 Interest income-revenue funds 300,000 - 300,000 - Other revenue available for debt service 510,000 - 510,000 -

Gross revenue as defined 50,956,000 8,951,000 52,163,000 9,147,000 Less operating expenses before depreciation (34,618,400) (7,536,200) (36,882,100) (7,218,900) . Net revenue as defined for 110% test (water only) 16,337,600 1,414,800 15,280,900 1,928,100 System development fees 900,000 138,000 1,000,000 138,000

Net revenue as defined for 120% test $ 17,237,600 $ 1,552,800 $ 16,280,900 $ 2,066,100

Debt service requirements Water bonds $ 8,281,000 $ - $ 9,682,000 $ - Wastewater bonds - 767,000 - 861,000

Total debt service requirements for fiscal year $ 8,281,000 $ 767,000 $ 9,682,000 $ 861,000 Debt service coverage 110% test (water only) 1.97 - 1.58 - Debt service coverage 120% test 2.08 2.02 1.68 2.40

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Executive Division summary

Administration Division summary

Customer Service Department summary

Finance Department summary

Human Resources Department summary Information Technology Department summary

Utility Operations Division summary

Engineering Department summary Operations Department summary

Position and fleet summary

Operating expenditure budget by functional unit

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EXECUTIVE DIVISION SUMMARY FOR FISCAL YEAR 2018

RESPONSIBILITIES AND BUDGET ISSUES

The Executive Department represents the Authority's executive branch of the organization, including the executive director, general counsel, internal auditor and support staff. The budget supports all external legal services, governmental liaison management audit costs and public information. Since the department employs a number of specialized, professional and senior level management positions, salaries are a substantial part of its budget.

DEPARTMENTS

• Executive • Public Information

KEY DEPARTMENT INDICATORS, CONTINUED

Budgeted Budgeted Actual 2016 2017 2018

Key department indicators

Number of full time department employees budgeted 8 8 8 Positions budgeted last year that are eliminated - - - Positions transferred in (out) - 1 1 Number of regular and special board meeting 14 14 14 Number of board workshop meetings 3 3 3 Number of board committee meetings 4 4 4 Number of public hearings 6 6 6

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EXECUTIVE DIVISION SUMMARY, CONTINUED FOR FISCAL YEAR 2018 Executive

2018 Budget 16%

Executive Office Public Information

84%

Division 2018 Budget Executive Office $ 1,365,200 Public Information 267,800

Total $ 1,633,000

Expenditure by Category $4,000,000 Actual 2016 $3,000,000

$2,000,000 2017 Budgeted

$1,000,000 2018 Budget

$- Personnel Services Other Operating Capital Outlay

Expenditure Actual 2016 2017 Budgeted 2018 Budget Personnel Services $ 1,084,681 $ 1,049,600 $ 1,119,200 Other Operating 382,790 523,600 513,800 Capital Outlay 626 120,000 - Total $ 1,468,097 $ 1,693,200 $ 1,633,000

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ADMINISTRATION DIVISION SUMMARY FOR FISCAL YEAR 2018

RESPONSIBILITIES AND BUDGET ISSUES

The Administration Division is responsible for the business-type activities of the organization, including finance, human resources, customer service and technical services. The managers of these departments report directly to the Deputy Executive Director in charge of administration. The budgets, goals and indicators for these departments are discussed on the following pages.

DEPARTMENTS • Finance Department • Information Technology Department • Human Resources Department • Customer Service Department

RESPONSIBILITIES AND BUDGET ISSUES

The Administration department consists of finance, accounts receivable, purchasing and inventory, billing and records retention department. The department’s budget supports contractual services for banking, investment services, financial and rate consultant fees and billing.

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CUSTOMER SERVICE DEPARTMENT SUMMARY FOR FISCAL YEAR 2018

RESPONSIBILITIES AND BUDGET ISSUES

The Customer Service Department is responsible to establish accounts, receive and process payments, research customer inquiries, administer the call center, collect meter readings for billing purposes, research unusual consumption situations and handle service calls for the customer. The department’s budget provides funding for meter reading data recorders to accurately capture consumption. The budget also supports salaries and benefits for adequate staff at three strategically located Area offices.

KEY DEPARTMENT INDICATORS

Budgeted Actual 2016 2017 Budget 2018 Key department indicators Number of full time department employees budgeted 40 39 35 New positions not in prior year's budget (3) - - Positions budgeted last year that are eliminated 3 1 (4) Positions transferred in (out) 2 - (1) Number of calls received from call center 115,000 107,000 85,000 Number of meters in service 49,000 49,000 52,000 Number of automated read meters 49,900 49,300 52,000 Number of data collection units 23 24 31 Number of delinquent service orders - 3,200 3,900 Number of high consumption investigations 7,500 6,000 7,000 New meter installations (not including replacements) 300 400 500 40,000 Total field service orders 53,700 38,000 Number of zero read investigations 3,900 4,000 3,000 Number of MIU's changes - 2,800 4,200

SUB-DEPARTMENTS

• Customer Service Administration • Field Services Key West and the Lower Keys • Customer Service Key West and the • Field Services Marathon and the Middle Keys Lower Keys • Customer Service Marathon and • Field Services Tavernier and the Upper Keys the Middle Keys • Customer Service Tavernier and the Upper Keys

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CUSTOMER SERVICE DEPARTMENT SUMMARY, CONTINUED FOR FISCAL YEAR 2018

DEPARTMENT GOALS, OBJECTIVES, AND PERFORMANCE MEASURES

Strategic goal supported Provide skilled customer service assistance by Proactive public outreach and superior customer service. providing training and certifications. i.e. Notary services, computer training, GPS training, etc. Provide efficient response to customers who request their consumption be analyzed Develop and expand services for the investigation of accounts with high consumption. Promote community involvement by employees participating in public service organizations. Optimize efficiency through the utilization of the Develop a sustainable utility and related infrastructure. Mobile Workforce Tool for distributing Service Fund and implement a cost-effective water conservation Orders. program.

Expand customer services by utilizing Neptune Financial optimization. Evaluate utilization of staff vs. handheld readers to optimize data extraction outsourcing around efficient use of IVR Payment efficiency. processing, bill-pay on line and e-mail billing.

Expand membership and participation in key Enhance employee communication plan. Develop strategic community organizations. plan to develop succession plan to ensure future staffing so Develop, implement and promote meaningful water training and leadership needs are met. conservation programs by participating in available grant opportunities.

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CUSTOMER SERVICE DEPARTMENT SUMMARY, CONTINUED FOR FISCAL YEAR 2018 Customer Service

2018 Budget

1%

Customer Service Administration 44% Customer Service 55% Field Services

Division 2018 Budget Customer Service Administration $ 33,000 Customer Service 1,090,100 Field Services 1,364,100

Total $ 2,487,200

Expenditure by Category $10,000,000 $8,000,000 $6,000,000 2017 Budgeted $4,000,000 2018 Budget $2,000,000 Actual 2016 $- Personnel Services Other Operating Capital Outlay

Expenditure Actual 2016 2017 Budgeted 2018 Budget Personnel Services $ 2,592,550 $ 2,626,200 $ 2,315,700 Other Operating 77,187 107,100 171,500 Capital Outlay 29,300 101,500 - Total $ 2,699,037 $ 2,834,800 $ 2,487,200

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FINANCE DEPARTMENT SUMMARY FOR FISCAL YEAR 2018

RESPONSIBILITIES AND BUDGET ISSUES

The Administration department consists of finance, accounts receivable, purchasing and inventory, billing and records retention department. The department’s budget supports contractual services for banking, investment services, financial and rate consultant fees and billing.

SUB-DEPARTMENTS

• Finance Department • Records Department • Billing Department • Purchasing and inventory

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FINANCE DEPARTMENT SUMMARY, CONTINUED FOR FISCAL YEAR 2018

KEY DEPARTMENT INDICATORS

Budgeted Actual 2016 2017 Budget 2018 Key department indicators Number of full time department employees budgeted 28 29 30 New positions not in prior year's budget - - - Positions transferred in (out) - - 1 Total bills/payments processed 594,841 590,000 600,000 Vendor payments 2,458 2,700 2,700 Customer deposit refunds 11,629 10,000 12,000 Number of purchase orders 1,600 1,650 1,670 Number of bids and RFps/RFQ's issued 23 20 20 Number of warehouses 5 5 5 Number of stock items 2,200 2,250 2,200

DEPARTMENT GOALS, OBJECTIVES, AND PERFORMANCE MEASURES

Strategic goal supported • Expand electronic interaction capabilities to enhance customer Proactive public outreach and superior customer experience and improve operational efficiencies, including service interactive voice recognition, e-bill, payment kiosk and auto-pay • Increase public awareness of excellent quality and value of tap Proactive public outreach and superior customer water service • Continue to monitor debt structure to identify possible Financial optimization opportunities for cost savings • Continue to monitor water and wastewater rates for sufficiency Financial optimization

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FINANCE DEPARTMENT SUMMARY, CONTINUED FOR FISCAL YEAR 2018

Finance

2018 Budget 8% Finance 11% Billing

Purchasing and Inventory 23% 58% Records

Division 2018 Budget Finance 2,239,700 Billing 883,700 Purchasing and Inventory 439,400 Records 320,600 Total $ 3,883,400

Expenditure by Category $10,000,000 $8,000,000 $6,000,000 Actual 2016 $4,000,000 2017 Budgeted $2,000,000 2018 Budget $- Personnel Services Other Operating Capital Outlay

Expenditure Actual 2016 2017 Budgeted 2018 Budget Personnel Services $ 2,413,424 $ 2,443,400 $ 2,679,900 Other Operating 1,054,802 1,119,100 1,203,500 Capital Outlay 29,974 - - Total $ 3,498,200 $ 3,562,500 $ 3,883,400

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HUMAN RESOURCES DEPARTMENT SUMMARY FOR FISCAL YEAR 2018

RESPONSIBILITIES AND BUDGET ISSUES

The Human Resources Department represents Human Resources and Risk Management. The budget supports all personnel related programs.

The Human Resources Department is the system administrator for the human resources software; which includes the core HR functions, benefits management, performance management, time and attendance, employee self- service and manager self-service. All Employee recruitment, selection, orientation and retention is administered by the Human Resources Department.

The Human Resources Department budgets for all employee’s benefits (i.e. health, dental, vision, life insurances, the wellness bonus, longevity, annual employee meeting, etc.), benefit consultants and all business insurance programs (i.e. property, flood, general liability, automobile liability, comprehensive crime, public officials, environmental/ pollution control, and fiduciary liability.

All Rick Management functions are administered through the Human Resource Department; including claims management of property and casualty, all liability and workers compensation insurance coverage's.

SUB-DEPARTMENTS

• Human Resources • Risk Management

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HUMAN RESOURCES DEPARTMENT SUMMARY, CONTINUED FOR FISCAL YEAR 2018

KEY DEPARTMENT INDICATORS

Key department indicators Budgeted Actual 2016 2017 Budget 2018 Number of full time department employees 4 4 4 Number of student positions for the agency 3 3 3 Positions budgeted last year that are eliminated 1 1 - Positions transferred in (out) 4 (1) - Job postings for the organization 37 45 40 Number of applications received 500 500 500 Number of new hires 23 20 - Number of resignations, retirements or terminations 17 20 - Number of grievances filed 3 3 3 Number of arbitrations filed - 2 2 Number of insurance claims (including workman's compensation and hurricane damage) 50 35 40 - -

DEPARTMENT GOALS, OBJECTIVES, AND PERFORMANCE MEASURES

Strategic goal supported Optimize the functionality of the new Human Enhance employee communication and development by Resources information system with improved giving employees the tools they need to stay on top of their technology. personal grown and development.

Train employees throughout the system on how to Enhance employee communication and development by use the many tools available to them within the new giving the employees the tools they need to stay on top of ADP HRIS. their personal benefits.

Implementing a new electronic performance Financial optimization by managing our insurance costs and management system. potential loss. Utilize the company property program in ADP to track Financial optimization by managing our company properly. FKAA property issued to each employee. Utilize more functionality of the automated Enhance employee communication and development by performance management dashboard. involving the Supervisors and employee in their own performance goals.

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HUMAN RESOURCES DEPARTMENT SUMMARY, CONTINUED FOR FISCAL YEAR 2018 Human Resources

2018 Budget

Human Resources

100%

Division 2018 Budget Human Resources $ 5,846,200

Total $ 5,846,200

Expenditure by Category $10,000,000

$8,000,000 Actual 2016

$6,000,000 2017 Budgeted $4,000,000 2018 Budget $2,000,000

$- Personnel Services Other Operating Capital Outlay

Expenditure Actual 2016 2017 Budgeted 2018 Budget Personnel Services $ 3,985,868 $ 4,189,100 $ 4,226,900 Other Operating 1,445,723 1,578,800 1,619,300 Capital Outlay - 120,000 - Total $ 5,431,591 $ 5,887,900 $ 5,846,200

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INFORMATION TECHNOLOGY DEPARTMENT SUMMARY, FOR FISCAL YEAR 2018

RESPONSIBILITIES AND BUDGET ISSUES

Information Technology is responsible for providing the technology direction and the delivery of proven technology products and services. Information Technology is responsible for planning, designing, acquiring, building, operating and maintaining technical infrastructure and for developing jointly with management, technology policies, strategies, standards, guidelines, and architectural direction. The technical architecture includes data, applications, hardware, software, networks, security and control systems. Information Technology is responsible for ensuring that technology is used to a competitive advantage in alignment with the goals of the mission as set by the Board of Directors.

As noted in last year’s budget issues, at this stage of implementing new infrastructure and programs we would be stretched on the manpower side of providing service. It is our belief that we are at this point and need to add one full-time position shortly so that critical activities will not suffer.

SUB-DEPARTMENTS

• Information Technology

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INFORMATION TECHNOLOGY DEPARTMENT SUMMARY, CONTINUED FOR FISCAL YEAR 2018

KEY DEPARTMENT INDICATORS

Actual 2016 Budgeted 2017 Budget 2018 Key department indicators Number of full time department employees 25 26 11 Positions budgeted last year that are eliminated - - - Positions transferred in (out) - - (15) Help desk requests 2,500 5,000 3,000 Number of work stations maintained 310 325 350 Number of servers maintained 110 110 115 Routers/switches maintained 90 95 100 PBX switches maintained 3 3 2 Telephones maintained (includes fax & cell) 455 455 175 Radios maintained 285 2,400 - PLCs maintained 195 510 - Printers 145 145 155

DEPARTMENT GOALS, OBJECTIVES, AND PERFORMANCE MEASURES

Strategic goal supported Keep everyone educated on the long-term cost of Develop a sustainable utility and related infrastructure implantation of all systems. Continue mobility initiative to improve efficiencies. Financial optimization Add redundancy to positions through formal and on Enhance employee communication and development the job training. plan Continue moving the Authority towards improved Develop sustainable strategies technologies Enhance network security to ensure utility safe Develop a defensible utility and related infrastructure. operations.

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INFORMATION TECHNOLOGY DEPARTMENT SUMMARY, CONTINUED FOR FISCAL YEAR 2018 Information Technology

2018 Budget

Information Technology

100%

Division 2018 Budget Information Technology $ 3,455,700

Total $ 3,455,700

Expenditure by Category $10,000,000 $8,000,000 $6,000,000 Actual 2016

$4,000,000 2017 Budgeted

$2,000,000 2018 Budget

$- Personnel Services Other Operating Capital Outlay

Expenditure Actual 2016 2017 Budgeted 2018 Budget Personnel Services $ 973,040 $ 850,700 $ 973,600 Other Operating 1,452,849 1,782,000 1,941,100 Capital Outlay 423,046 573,500 541,000 Total $ 2,848,935 $ 3,206,200 $ 3,455,700 102 | P a g e

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UTILITY OPERATIONS DIVISION SUMMARY FOR FISCAL YEAR 2018

RESPONSIBILITIES AND BUDGET ISSUES

The Utility Operations Division is responsible for the operational activities of the organization, including engineering department and the operations department. The managers of these departments report directly to the Deputy Executive Director in charge of utility operations. The budgets, goals and indicators for these departments discussed on the following pages.

DEPARTMENTS

• Engineering • Utility Operations

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ENGINEERING DEPARTMENT SUMMARY FOR FISCAL YEAR 2018

RESPONSIBILITIES AND BUDGET ISSUES

The Engineering Department consists of General Engineering, Contract Management, Water Quality, Project Design, and a separate division for the Engineering Construction Crew. The department’s budget supports the development of capital project plans, project inspection, distribution project design and finished water testing, reporting and compliance, and wastewater project design and management. The department’s budget also provides for grant application preparation and private project review for the determination of non-residential system development charges. The department reviews and coordinates potable water service and wastewater system availability for all new non-residential and multi-family residential development. The department is responsible for designing, coordination and implementing the Authority’s capital improvement budget, (located under the Capital Budget tab) and developing future initiatives to maintain and improve system operations and sustainability. The department is called upon to serve as an organizational “think-tank”, providing scientific and engineering resources and solutions to challenges company-wide. Future efforts will be concentrated on system renewal and replacement of aging assets and greenhouse footprint reduction.

SUB DEPARTMENTS

• General Engineering • Water Quality • Construction Crew • Contract Management • Design • Water Data Management & Loss Division

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Departmental Information

ENGINEERING DEPARTMENT SUMMARY, CONTINUED FOR FISCAL YEAR 2018

KEY DEPARTMENT INDICATORS

Actual 2016 Budgeted 2017 Budget 2018 Key department indicators Number of full time department employees budgeted 36 41 44 Positions budgeted last year that are eliminated - - - Positions transferred in (out) 2 2 3 Number of construction design projects underway 12 12 12 Number of construction projects underway 12 12 12 Number of general engineering task orders 5 5 10 Number of fixture reviews 210 170 220 Number of plan reviews 56 80 80 Feet of designed distribution 52,611 48,500 53,115 Number of Fire line/hydrant 36 100 60 Number of backflow inspections completed 465 115 120 Number of backflow prevention tests 10,782 12,505 6,510 Number of water quality samples 15,419 15,396 15,600 Feet of distribution pipe installed by in-house crew 18,000 15,000 25,000 Number of meter change outs 1,138 3,125 3,125 Number of meter tests 1,138 3,125 3,125 DEPARTMENT GOALS, OBJECTIVES, AND PERFORMANCE MEASURES

Strategic goal supported Complete wastewater system projects in Monroe Financial optimization through integration of workflow County. programs.

Recover lost revenue and reduce lost water to meet Work with South Florida Water Management District industry goals. on plants to prevent or mitigate saltwater intrusion.

Strengthen wellfield protection programs by Enhance and provide cost effective enforcing existing cooperative agreement with Miami-Dade Department of Environmental Resource Management and enhance in house testing and monitoring.

Engage experts to assist with assessment of the Insure financial efficiency of the Capital Improvements integrity of the utility system. Plan (CIP) delivery. Develop condition assessment of transmission system. Develop and integrated and dynamic master plan to Increase revenue, reduce water loss, and improve insure financial stability. asset management.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Departmental Information

ENGINEERING DEPARTMENT SUMMARY FOR FISCAL YEAR 2018

Engineering

2018 Budget 21% 31% General Engineering Contract Management 11% Water Quality Design 21% 16% Construction Crew

Division 2017 Budget General Engineering $ 1,402,500 Contract Management 712,300 Water Quality 980,900 Design 506,800 Construction Crew 957,700 Water Data Management and Loss 1,544,300 Total $ 6,104,500

Expenditure by Category $10,000,000

$8,000,000

$6,000,000 Actual 2016

$4,000,000 2017 Budgeted 2018 Budget $2,000,000

$- Personnel Services Other Operating Capital Outlay

Expenditure Actual 2016 2017 Budgeted 2018 Budget Personnel Services $ 2,569,874 $ 2,963,000 $ 2,949,200 Other Operating 935,628 1,138,300 1,475,700 Capital Outlay 1,112,223 1,640,400 1,679,600 Total $ 4,617,725 $ 5,741,700 $ 6,104,500

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Departmental Information

OPERATIONS DEPARTMENT SUMMARY FOR FISCAL YEAR 2018

RESPONSIBILITIES AND BUDGET ISSUES

The Operations department is charged with the operations and maintenance of the Authority's transmission, distribution, water treatment and source of supply facilities throughout the system as well as collection and treatment of wastewater. The department's budget provides funding to maintain crews in all parts of the Authority's 130 mile service area. The department is also responsible for the operation and maintenance of two seawater reverse osmosis plants, four wastewater treatment plants, fleet vehicles and heavy equipment. The department has several shift and standby workers due to the critical nature of their tasks. Minimum response time in the event of a major transmission break is critical. Salaries and benefits are the major driver of the department's budget, along with electricity (mainly for the water treatment plants and pump stations), chemicals and non-routine maintenance projects, such as painting of water tanks and tape wrapping of the transmission line

SUB-DEPARTMENTS • Operations Office-Key West • Big Coppitt Wastewater Treatment • Operations Office Lower Keys • Big Coppitt Collection • Distribution Maintenance-Area l • Key Haven Wastewater Treatment • Distribution Maintenance-Area II • Key Haven collection • Distribution Pump Station-Key West • Cudjoe Regional Wastewater Treatment • Distribution Pump Station-Stock Island • Cudjoe Regional Collection • Valve Shop • Navy Wastewater Systems • Fleet Maintenance-Lower Keys • Operations-Marathon, Middle Keys • Leak Survey-Lower Keys • Distribution/Maintenance Area lll • Stock Island Reverse Osmosis Plant • Transmission Maintenance-Area lll • Wastewater Treatment Plant-Bay Point • Transmission Pump Station-Marathon • Bay Point Collection • Transmission Pump Station-Ramrod

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Departmental Information

OPERATIONS DEPARTMENT SUMMARY, CONTINUED FOR FISCAL YEAR 2018

SUB-DEPARTMENTS, CONTINUED

• Fleet Maintenance-Middle Keys • Fleet Maintenance-Upper Keys • Reverse Osmosis Plant-Marathon • Wastewater Treatment Plant-Layton • Wastewater Treatment Plant-Duck Key • Layton Collection • Wastewater Operations and • Water Treatment-Main Office Maintenance • Duck Key Collection • Water Treatment Plant-Florida City • Operations-Upper Keys/Key Largo • Transmission Pump Station-Florida City • Distribution Maintenance Area lV • Transmission Pump Station-Long Key • Distribution Maintenance Area V • Transmission Pump Station-Key Largo • Transmission Maintenance Areas lV & • Florida City Reverse Osmosis Plant V • Electrical & Instrumentation Controls

KEY DEPARTMENT INDICATORS

Budgeted Actual 2016 2017 Budget 2018 Key department indicators Number of full time department employees 127 127 145 Positions budgeted last year that are eliminated - - - Positions transferred in (out) 3 3 18 Number of vehicles in the department - 207 Water treated (billions of gallons) 6,558 6,558 6,454 Transmission line maintained (in feet) 987,360 987,360 987,360 Distribution lines maintained (in feet) 3,643,200 3,643,200 3,643,200 Brackish water RO plants 1 1 1 Reclaimed water lines maintained (feet) 19,000 19,000 19,000 Seawater reverse osmosis plants operated 2 2 2 Wastewater treatment plants operated 7 7 7 Transmission booster pump stations operated 6 6 6 Distribution pump stations operated 20 20 20 Water storage tanks on line 34 34 34 Reclaimed water pump stations operated 2 2 2 Internal support service orders performed 100 100 100 Line locations performed 10,000 10,000 10,000 Water quality tests performed 82,050 82,050 82,050 Total fleet maintained 169 172 174

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Departmental Information

OPERATIONS DEPARTMENT SUMMARY, CONTINUED FOR FISCAL YEAR 2018

DEPARTMENT GOALS, OBJECTIVES, AND PERFORMANCE MEASURES

Strategic goal supported Continue to allocate staff resources to implement Develop a defensible utility and related infrastructure. Monroe County wastewater systems Implement new projects identified in the Navy Financial optimization-Develop a defensible utility and Wastewater contract. related infrastructure.

Expand internal resources and engage experts to Insure financial efficiency of capital projects. strengthen wellfield protection program. Engage experts to assist with assessment of the Improvements plan (CIP) delivery. Develop condition integrity of the transmission system. assessment of transmission system. Begin transmission valve replacement program.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Departmental Information

OPERATIONS DEPARTMENT SUMMARY, CONTINUED FOR FISCAL YEAR 2018 Operations

2018 Budget Administration 9% 5% Water Operations 16%

Wastewater Operations

Electrical and Instrumental 70% Controls

Division 2018 Budget Administration $ 1,238,900 Water Operations 17,975,600 Wastewater Operations 4,172,700 Electrical and Instrumental Controls 2,322,500

Total $ 25,709,700

Expenditure by Category $14,000,000 $12,000,000 $10,000,000 $8,000,000 Actual 2016 $6,000,000 2017 Budgeted $4,000,000 2018 Budget $2,000,000 $- Personnel Services Other Operating Capital Outlay

Expenditure Actual 2016 2017 Budgeted 2018 Budget Personnel Services $ 11,654,133 $ 11,627,900 $ 12,342,100 Other Operating 8,895,321 10,155,800 10,822,100 Capital Outlay 3,414,243 2,320,600 2,545,500 Total $ 23,963,697 $ 24,104,300 $ 25,709,700

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Departmental Information

POSITION AND FLEET SUMMARY FOR FISCAL YEAR 2018 Human Customer Information Positions Executive Finance Engineering Operations Total Resources Service Technology Budgeted positions in 2016 7 29 5 40 25 37 129 272 New positions Jorneyman Electrician 1 1 Data Analyst 1 1 WW Maintnenace Mechanic 2 2 Valve/Hydrant Tech B 1 1 Transferred positions Public Information 1 (1) - Water Demand Mgt/Loss program positions 4 (4) - Training Manager (1) 1 - Eliminated positions Contract Field Representative (1) (1) Field Office Clerical Assistant (1) (1) Customer Service Coordinator (1) (1) Budgeted positions in 2017 8 29 4 39 26 41 127 274 New positions Engineer 1 1 WW Maintnenace Mechanic C 3 3 Leak Control Tech B 1 1 Application Support Specalist 1 1 Meter Technician & Billing Analyst 1 1 Asset management system manager 1 1 Transferred positions Advanced Metering Specialist (1) 1 - GIS Tech Support Specialist (1) 1 - Technical Services Group (14) 14 - Eliminated positions Assistant Manager of Engineering (1) (1) Manager of Customer Service (1) (1) Customer Service Representative (1) (1) Field Representatives (2) (2) Budgeted positions in 2018 8 30 4 35 11 44 145 277

Human Customer Information Fleet Executive Finance Resources Service Technology Engineering Operations Total Budgeted vehicles in 2016 3 2 - 21 17 38 108 169 Added vehicles Trucks for new wastewater positions 2 2 Van for new electrician 1 1 Eliminated vehicles - None - Transferred vehicles - Spares moved to Cudjoe inspectors - Budgeted vehicles in 2017 3 2 - 21 18 38 110 172

Added vehicles - Bucket Truck 1 1 Dump truck 1 1 Eliminated vehicles - None - Transferred vehicles - GIS Tech Support Specialist (1) 1 - Electrical vehicles (15) 15 - Budgeted vehicles in 2018 3 2 - 21 2 39 127 174

BUDGETED POSITIONS BY DEPARTMENT BUDGETED VEHICLES BY DEPARTMENT Human Executive Executive Finance Finance Resources 3% 11% Human Resources 2% 1% 1% Customer Service 0% Information Customer Service 11% Technology 13% 1% Operations 52%

Information Technology 4% Engineering Operations 20% 65% Engineering 16% 112 | P a g e

Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Departmental Information

OPERATING EXPENDITURE BUDGET BY FUNCTIONAL UNIT FOR FISCAL YEAR 2018

Capitalized Change from Cost center Total department salaries and Total operating previous year budgets budget outlay budget budget Executive Division Executive Office $ 1,365,200 $ - Public Information 267,800 - Totals 1,633,000 - 1,633,000 3.8%

Finance Department Finance 2,239,700 - Billing 883,700 - Purchasing and Inventory 439,400 - Records 320,600 Totals 3,883,400 - 3,883,400 9.0%

Human Resources Department Human Resources 5,846,200 - Totals 5,846,200 - 5,846,200 1.4%

Customer Service Department Customer Service Administration 33,000 - Customer Service 1,090,100 - Field Services 1,364,100 - Totals 2,487,200 - 2,487,200 -9.0%

Information Technology Department Information Technology 3,455,700 (541,000) Totals 3,455,700 (541,000) 2,914,700 10.7%

Engineering Department General Engineering 1,402,500 (184,000) Contract Management 712,300 (449,200) Water Quality 980,900 (33,000) Design 506,800 (112,600) Construction Crew 957,700 (562,800) Water Data Management and Loss 1,544,300 (338,000) Totals 6,104,500 (1,679,600) 4,424,900 7.9%

Operations Department Operations Administration 1,238,900 (29,000) Water Operations 17,975,600 (2,246,800) Wastewater Operations 4,172,700 (210,300) Electrical and Instrumental Controls 2,322,500 (59,400)

Totals 25,709,700 (2,545,500) 23,164,200 6.3%

Grand Totals $ 49,119,700 $ (4,766,100) 44,353,600 5.2%

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Glossary

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Glossary

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Glossary

GLOSSARY OF TERMS AND ACRONYMS FOR FISCAL YEAR 2018

Accrual Basis of Accounting - The recording of expenses or charges incurred but not paid and revenue earned but not received within the same period. This method is intended to match revenue and expenses to the fullest extent possible, independent of the dates on which settlements of such items are made.

Amortization - The spreading of costs over a period of time, usually the life of an intangible asset or the term of a debt.

Annual Water Rate Index - The formula by which the Authority annually adjusts the base facility charge and the consumption charge to reflect inflationary increases in the cost of providing services.

Assessment – A charge or special assessment (sometimes characterized as a non-ad valorem assessment) imposed by the Authority to fund the capital cost of utility improvements or the operating cost of related services.

Authority – Represents the Florida Keys Aqueduct Authority, unless a different intent clearly appears from the context.

AWWA - The American Water Works Association, an international water association of which the Authority is a member.

Balanced Budget – A budget with revenues equal to expenditures.

Biscayne Aquifer – An underground aquifer that serves as the Authority’s primary water source.

Bond - An interest bearing certificate of debt; a written contract by the issuer to pay to the lender a fixed principal amount on a stated future date, and a series of interest payments (usually semiannually) during its life.

Capital Asset – An asset having a useful life in excess of one year, and costing $1,500 or more which includes additions, improvements, or replacements to buildings, facilities, land, and structures.

Capital Budget - The portion of the Budget devoted to the construction of new utility plant (additions, improvements, and replacements) and expenditures for the purchase or acquisition of existing utility plant facilities and capital assets.

Consumptive Use Permit – A permit issued by the South Florida Water Management District that regulates the amount of water that can be withdrawn from its water source.

Collection System – A system of pipes, manholes, pumps, etc. that collects wastewater and delivers it to a treatment plant.

Debt Service – The amounts necessary to pay principal, interest and other financing fees.

Depreciation - The specific allocation of the cost of a fixed asset due to usage or the passage of time. Depreciation is a non-cash expense and is not a budgeted expenditure. However, it must be considered in rate development to assure that the rates are sufficient to recover the cost of the asset.

DERM – Dade County Department of Environmental Resource Management, an agency that contracts with the Authority to monitor its wellfield for contaminates.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Glossary

GLOSSARY OF TERMS AND ACRONYMS, CONTINUED FOR FISCAL YEAR 2018

Enterprise Fund – A fund used to account for the business activities of a government. The Authority’s utility activities are accounted for in a single enterprise fund.

Expense – A use of financial resources to acquire goods or services consumed in a single year’s current operation.

Fiscal Year – A 12-month period that determines the time frame for the financial budget. At the end of the fiscal year, the financial position and results of operations are determined. The Authority’s fiscal year runs from October 1 through September 30.

FKAA or the Authority – Florida Keys Aqueduct Authority

Fleet – Any vehicle that requires a license for operation on a public highway, such as automobiles, trucks, vans, tractors, etc. Fleet does not refer to heavy equipment.

FSAWWA-The Florida section of the American Water Works Association, a state water association of which the Authority is a member

GAAP – Generally Accepted Accounting Principles

GFOA – Government Finance Officers Association

GIS – Geographic information system

MGD or mgd – Million gallons per day. Term usually used to define capacity of water and wastewater systems and their production.

Operating Expenses – Labor, materials and other expenses incurred for production, transmission and distribution of water, customer service, administrative overhead and other general expenses.

Potable Water – Water that meets all requirements and regulations for human consumption.

PSI-Pounds per square inch.

Reclaimed Water – Wastewater that has been treated and is available to reuse for irrigation or other non- potable purposes.

Revenue Bond – A bond that is payable from the revenue generated from the operation of the Utility. Any other revenue the Board of Directors decides to pledge can also secure a revenue bond.

Reverse Osmosis – A process through which chlorides are removed from ground water or sea water in order to treat it for potable purposes.

Service Area – The area within which water and wastewater service is provided. The Authority’s service area includes that section of Monroe County, Florida located in the Florida Keys.

SFWMD – The South Florida Water Management District, a water use regulator that issues the Authority’s consumptive use permit.

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Florida Keys Aqueduct Authority’s Budget and Financial Plan 2018 Glossary

GLOSSARY OF TERMS AND ACRONYMS, CONTINUED FOR FISCAL YEAR 2018

Strategic Planning – The process used to determine the Authority’s mission, vision, values, goals, objectives, roles and responsibilities, etc.

Transmission Force Mains – Pipes through with water is forcibly pumped under pressure to deliver it to distribution systems. The transmission line is usually under much higher pressure than a distribution line.

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BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY

AGENDA ITEM: TAB: CONSENT: D REGULAR: D

MEETING DATE: JULY 26, 2017 DIVISION: EXECUTIVE

AGENDA TITLE: Public Hearing for proposed revisions to FKAA Rules and Regulations, Chapter 48-208.004, Water Rules Fees and Charges.

ITEM BACKGROUND: Staff is proposing a revision to FKAA Rules and Regulations with a 5% increase to Water Fees and Fire Service Fees in Fiscal Year 2018 and a 5% increase in Fiscal Year 2019 for the purpose of funding the replacement of the Reverse Osmosis facility on Stock Island as well as transmission and distribution system upgrades.

- 48-208.004 Monthly Fees and Charges

See Summary Document attached.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: 5/25/2017: Board authorized Staff to hold Public Hearings on proposed rate increases to Chapter 48-208.004, Water Rules Fees and Charges.

STAFF RECOMMENDATION (MOTION): N/A

SUPPLEMENTAL INFORMATION: Summary Document Attached

DOCUMENTATION: Included: D To-Follow: D Not Required: D Cost to FKAA: $ _____ BUDGETED: YesD No D Cost to Others: $ _____ Total Cost: $ -----

DEPARTMENT:

Reviewed by: Internal Auditor: -_ff- ounsel: (1Tf Executive Director: &-:

BOARD ACTION:

Approved: D Tabled : D Disapproved: D Recommendation Revised : D

Comments: ------Date: ______Recording Clerk: ______FKAA SUMMARY DOCUMENT

PROPOSED REVISIONS TO FKAA RULES & REGULATIONS FOR WATER RATES

Proposed Revision Objective and Effect:

Chapter 48-208.004 Monthly Fees and Charges Proposed revision provides for a 5% increase to Water Fees and Fire Service Fees in Fiscal Year 201 8 and a 5% increase in Fiscal Year 2019 for the purpose of funding the replacement of the Reverse Osmosis faci lity on Stock Island as well as transmission and distribution system upgrades.

Proposed language is underlined in red and deleted language is shown with strike through. Sections which address proposed revisions are shown as follows:

WATER RULES, FEES AND CHARGES CHAPTER 48-208

48-208.004 MONTHLY FEES AND CHARGES

(1) Base Facility Charge (not billed to qualified Senior Citizens/100% Disabled American Veterans) Monthly After After Meter Size Charge 10/1/201 7 10/1/2018

%" or :X" $14.1 2 $15. 06 $16.07 l " ~ 37.66 40.17 1Y:z,, ~ 75.31 80.34 2" 11 2.94 120.48 128.53 3" 211.75 225.89 240.98 4" 350.37 373.77 398.74 6" 707.19 754.43 804.83 8" 1,129.30 1,204.74 1,285.2 1

(2) Number Retired (3) Fire Service Monthly Charge (Private Fire Protection Systems and fixtures) Fire Service Monthly Charge:

Minimum After After Line Size Charge 10/1/2017 10/1/2018

2" $10.38 $11.07 $11.81 3" +9-:4-7 20.77 22. 15 4" ~ 34.55 36.86 6" ~ 69.21 73.83 8" 103.78 11 0.7 1 11 8. 11 1O " 149.18 159. 15 169.78 12" 201.08 214.5 1 228.84 (c) Consumption Charges. 1. The Consumption Charge for potable purposes or other purposes, except actual fire fighting activities, as supplemental consumption to their premise service meter. When consumption on the Fire Protection Service System meter is due to actual fire fighting activities, the Customer will be billed based on Block One (I) Consumption Charges.

2. When consumption measured by a dual meter is not related to actual fire fighting activities, the customer will be billed a Base Facility Charge and a Consumption Charge based on the Meter size that would have been required to serve the property if it had been served by a single meter as determined by the Authority

(4) Consumption Charge

The monthly per thousand gallons charge for metered water consumption, billed in 100 gallon increments: Current After After Meter Size Consumption Block Charge 10/1/2017 10/1/2018

%" or o/4 " 1 0- 6,000 gallons ~ $6.33 $6.75 2 6,001 - 12,000 gallons ~ 9.24 9.86 3 12,001 - 30,000 gallons 9-:+l- 10.36 11.05 4 30,001 - 50,000 gallons ~ 11. 55 12.33 5 over 50,000 gallons +-h8-9 12.68 13.53

I" 1 0- 15,000 gallons ~ $6.33 $6.75 2 15,001 - 30,000 gallons ~ 9.24 9.86 3 30,001 - 75,000 gallons 9;R- 10.36 11.05 4 75 ,001 - 125,000 gallons ~ 11 .55 12.33 5 over 125,000 gallons ++49 12.68 13.53

1Yz' ' 1 0- 30,000 gallons ~ $6.33 $6.75 2 30,001 - 60,000 gallons ~ 9.24 9. 86 3 60,001 - 150,000 gallons 9;R- I 0.36 I 1.05 4 150,001 - 250,000 gallons ~ 11 .55 12.33 5 over 250,000 gallons +-h8-9 12.68 I 3.53

2" 1 0 - 48,000 gallons ~ $6.33 $6.75 2 48,001 - 96,000 gallons ~ 9.24 9.86 3 96,001 - 240,000 gallons 9;R- 10.36 11 .05 4 240,001 - 400,000 gallons ~ 11 .5 5 12.33 5 over 400,000 gallons ++-8-9 12.68 13.53

3" 1 0 - 90,000 gallons ~ $6.33 $6.75 2 90,001 - 180,000 gallons ~ 9.24 9.86 3 180,001 - 450,000 gallons 9;R- 10.36 11 .05 4 450,001 - 750,000 gallons ~ 11.55 12.33 5 over 750,000 gallons ++49 12.68 13.53 4" 1 0 - 150,000 gallons ~ $6.33 $6.75 2 150,001 - 300,000 gallons U6 9.24 9.86 3 300,001 - 750,000 gallons -9-:+-1- 10.36 11.05 4 750,001 - 1,250,000 gallons ~ 11 .55 12.33 5 over 1,250,000 gallons ++.-8-9 12.68 13.53

6" 1 0 - 300,000 gallons ~ $6.33 $6.75 2 300,001 - 600,000 gallons U6 9.24 9.86 3 600,001 - 1,500,000 gallons -9-:+-1- 10.36 11.05 4 1,500,001 - 2,500,000 gallons ~ 11.55 12.33 5 over 2,500,000 gallons ++.-8-9 12.68 13.53

8" 1 0 - 480,000 gallons ~ $6.33 $6.75 2 480,001 - 960,000 gallons U6 9.24 9.86 3 960,001 - 2,400,000 gallons -9-:+-1- 10.36 11.05 4 2,400,001 - 4,000,000 gallons ~ I I .55 12.33 5 over 4,000,000 gallons ++.-8-9 12.68 13.53 MINUTES OF REGULAR MEETING

OF THE

BOARD OF DIRECTORS

FLORIDA KEYS AQUEDUCT AUTHORITY

HELD ON

JUNE 28, 2017

FLORIDA KEYS AQUEDUCT AUTHORITY BOARDROOM 1100 KENNEDY DRIVE KEY WEST, FLORIDA 33040

10:00 A.M.

The following MEMBERS were present:

J. Robert Dean ...... Chairman Richard J. Toppino...... Vice-Chairman David C. Ritz ...... Secretary/Treasurer Antoinette M. Appell...... Member Cara Higgins ...... Member

Kirk C. Zuelch...... Executive Director Kerry G. Shelby ...... Deputy Executive Director Thomas G. Walker...... Deputy Executive Director Robert T. Feldman ...... General Counsel Timothy Esquinaldo ...... Internal Auditor

A LIST OF ATTENDANCE IS RETAINED WITH THE PERMANENT RECORD OF THIS MEETING. FKAA Board Minutes June 28, 2017 Page 2

REGULAR MEETING

The Regular Meeting was called to order by Chairman Dean at 10:00 a.m.

Ms. Coley presented the invocation and Chairman Dean led the Pledge of Allegiance.

EMPLOYEE AWARDS

Mr. Zuelch presented the Employee Awards as follows:

SERVICE AWARDS

George Blanco - Distribution System Operator A, Operations Department, Lower Keys - 10 Years of Service

Elishea Strickland - Operations Department Office Coordinator, Lower Keys- 10 Years of Service

Raquel Ladino - Customer Service Representative, Customer Service Department, Lower Keys- 10 Years of Service

EMPLOYEE OF THE QUARTER

Olivia Reyes - Delinquent Accounts Clerk

RETIREMENT

Tom Walker - Deputy Executive Director of Utility Operations

Chairman Dean closed the Regular Meeting at 10: 15 a.m.

PUBLIC HEARING #1 FOR PROPOSED BUDGET AND PUBLIC HEARING FOR PROPOSED WATER RATE INCREASE

Chairman Dean opened the Public Hearing at 10: 15 a.m.

Mr. Zuelch explained that the two (2) advertised Public Hearings are required by FKAA Legislation in all three (3) areas of the Keys for the proposed annual budget and any proposed rate increases.

Mr. Shelby advised that the proposed Budget anticipates a full year of revenue from the Cudjoe Regional Wastewater System; however, the proposed Budget may change based on the Board's decision to move forward with a new Stock Island reverse osmosis facility. He further advised that a 5% increase on October 1, 201 7 and October 1, 2018 to the water rates will be necessary to cover debt to fund a new reverse osmosis facility as well as transmission and distribution system upgrades, should the Board approve. FKAA Board Minutes June 28, 2017 Page 3

With there being no further discussion or questions from the public, the Public Hearing was closed at 10: 18 a.m.

REGULAR MEETING

Chairman Dean re-opened the Regular Meeting at 10: 18 a.m.

APPROVAL OF MINUTES

On motion of Mrs. Appell, seconded by Mr. Toppino, the Board unanimously approved the Minutes of a Regular Board Meeting held on May 25, 2017 as presented.

APPROVAL OF THE REGULAR AGENDA

On motion of Mrs. Higgins, seconded by Mr. Toppino, the Board unanimously approved the Agenda as presented.

CONSENT AGENDA WATER/WASTEWATER

On motion of Mr. Ritz, seconded by Mrs. Appell, the Board unanimously approved the following items by Consent:

1. OOC - 01 Approval of payment to Bryant, Miller & Olive for professional services rendered and expenses incurred for the month of May 2017 regarding the defense of declaratory judgment, Delaney & Kulikowsky v. Florida Keys Aqueduct Authority and Monroe County ($6,090.00 Monroe County)

2. OOC - 02 Approval of payment to Bryant, Miller & Olive for professional services rendered and expenses incurred for the month of December 2016 regarding Sands property and Florida Keys Aqueduct Authority pipeline in Islamorada, Florida ($2,155.00)

3. OOC - 03 Approval of payment to Allen, Norton & Blue, P.A. for professional services rendered and expenses incurred for the month of May 2017 ($427.50)

4. DUO - 01 Approval of an amendment to the contract with ACR for Phase 2 to expand the development and implementation of the water system database management services - Water Portals ($60,000.00)

5. DU0 - 02 Approval of the easement abandorunent described as Lot 2, Block 28 of Key West Realty Company's Subdivision as recorded in Plat Book 1, Page 43, of the Public Records of Monroe County, Florida FKAA Board Minutes June 28, 2017 Page 4

REGULAR AGENDA ITEMS

EXECUTIVE DEPARTMENT

E0-01. EXECUTIVE DIRECTOR'S REPORT

The Board accepted the Executive Director's Report with additional comments as presented.

Wastewater Systems Update

Mr. Zuelch reported on the following:

Construction is nearing completion on the Long Key collection system with notices to connect to be sent on July 1, 201 7. The deep well at the Cudjoe Regional Wastewater Facility was placed into operation on May 26, 2017 and the shallow wells placed into emergency mode. Construction of the Cudjoe Regional Wastewater System is substantially complete with approximately 4,000 customers currently connected. Reminder notices will be sent to those who have not yet connected. Staff is coordinating a completion ceremony for the Cudjoe Regional Wastewater System with Representative Holly Raschein with a tentative date of August 2017.

FKAA Consumer Confidence Report (Annual Water Quality Report)

Mr. Zuelch reported that as required by the State of Florida and Department of Environmental Protection, the Authority has prepared and made public the FKAA Consumer Confidence Report.

Hurricane Preparedness

Mr. Zuelch advised that the Authority has an Emergency Response Plan which covers hurricane preparedness. He further advised that Authority staff participates with all government entities in coordinating emergency action plans.

E0-02. APPROVAL OF THE EMPLOYMENT OF KENT NELSON, P.E. AS DEPUTY EXECUTIVE DIRECTOR OF OPERATIO NS

On recommendation of Mr. Zuelch and motion of Mrs. Higgins, seconded by Mrs. Appell, the Board approved the employment of Kent Nelson, P.E. as Deputy Executive Director of Operations. FKAA Board Minutes June 28, 2017 Page 5

DIVISION OF ADMINISTRATION

DOA-01. SUMMARY FINANCIAL INFORMATION OCTOBER 2016 THROUGH MAY 2017

Mr. Shelby reported that the Authority is at 70% of budgeted revenue. Approximately $5,500,000.00 has been expended on capital projects leaving approximately $11,500,000.00 in unrestricted cash reserves.

DOA-02. SUMMARY OF CONTRACTUAL COMMITMENTS THROUGH MAY 31, 2017

Mr. Shelby reported that contractual commitments total approximately $29,400,000.00 of which the Authority is responsible for approximately $13,000,000.00.

DIVISION OF UTILITY OPERATIONS

Mr. Toppino and Mrs. Higgins declared conflicts of interest and abstained from the vote on Item DUO - 02.

DU0-01. STATUS REPORT ON CUDJOE REGIONAL WASTEWATER PROJECT

Mr. Walker reported that since the first report given to the Board in July 2012, $183,000,000.00 has been expended on this project with approximately $15,000,000.00 remaining to complete.

DU0-02. APPROVAL OF CHANGE ORDER 16W FOR ADDITIONAL WORK AT VENTURE OUT SUBDIVISION OF THE CUDJOE REGIONAL WASTEWATER PROGRAM INNER ISLANDS PROJECT 4052-12 TO GIANNETTI CONTRACTING ($114,240.30 FKAA, $61,398.70 VENTURE OUT)

On recommendation of Mr. Walker and motion of Mr. Ritz, seconded by Mrs. Appell, the Board approved Change Order 16W for additional work at Venture Out Subdivision of the Cudjoe Regional Wastewater Program Inner Islands Project #4052-12 to Giannetti Contracting in the amount of $175,639.00.

DU0-03. APPROVAL OF AGREEMENT WITH DATA FLOW SYSTEMS, INC. (DFS) FOR A REMOTE MONITORING AND CONTROL SYSTEM FOR LIFT STATIONS IN THE CUDJOE REGIONAL WASTEWATER SYSTEM {$40,750.00 FKAA, 109,025.00 MONROE COUNTY)

On recommendation of Mr. Walker and motion of Mrs. Appell, seconded by Mr. Ritz, the Board approved an agreement with Data Flow Systems, Inc. (DFS), SOLE SOURCE provider, for a remote monitoring and control system for lift stations in the Cudjoe Regional Wastewater System for an estimated installation cost of $109,025.00 and annual service fees of $8,150.00. FKAA Board Minutes June 28, 2017 Page 6

DU0-04. APPROVAL OF AGREEMENT WITH F.J. NUGENT AND ASSOCIATES, INC. FOR A REMOTE MONITORING SYSTEM FOR GRINDER PUMP STATIONS IN THE CUDJOE AND LONG KEY WASTEWATER DISTRICTS ($105,300.00 FKAA, $176,000.00 MONROE COUNTY)

On recommendation of Mr. Walker and motion of Mr. Ritz, seconded by Mr. Toppino, the Board approved an agreement with F.J. Nugent and Associates, Inc., SOLE SOURCE provider of E/One Sentry Advisors, for a remote monitoring system for grinder pump stations in the Cudjoe and Long Key Wastewater Districts for an estimated installation cost of $176,000.00 and annual service fees of$21,060.00.

DUO-OS. APPROVAL OF CHANGE ORDER 2 FOR FLORIDA DESIGN CONTRACT #2309-15 TO REMOVE FROM SITE THE ONE MILLION GALLON CAPACITY STORAGE TANK AND PROVIDE OTHER PIPE SYSTEM IMPROVEMENTS AT THE J. ROBERT DEAN WATER TREATMENT FACILITY ($320,600.00)

On recommendation of Mr. Walker and motion of Mrs. Appell, seconded by Mrs. Higgins, the Board approved Change Order 2 for Florida Design Contract #2309-15 to remove from site the one million gallon capacity storage tank and provide other pipe system improvements at the J. Robert Dean Water Treatment Facility in the amount of $320,600.00.

DU0-06. APPROVAL OF AMENDMENT FOR CHEN MOORE AND ASSOCIATES TO PROVIDE ENGINEERING AND CONSTRUCTION PHASE SERVICES FOR PHASE 2 OF THE BOCA CHICANAS PUMP STATION AND FORCE MAIN PROJECT #4062-16 ($61,850.00)

On recommendation of Mr. Walker and motion of Mrs. Higgins, seconded by Toppino, the Board approved an amendment for Chen Moore and Associates to provide engineering and construction phase services for Phase 2 of the Boca Chica NAS Pump Station and Force Main in the amount of $61,850.00.

DU0-07. APPROVAL OF AN INTERLOCAL AGREEMENT AND PIGGYBACK CONTRACT WITH TEXAS EDUCATION SERVICE CENTER REGION 19 THROUGH ALLIED STATES COOPERATIVE (A STATE AGENCY) FOR TRENCHLESS TECHNOLOGY SERVICES AWARD ED TO MURPHY PIPELINE CONTRACTORS, INC., RFP #13-6903, FOR THE REPLACEMENT OF W ATERMAIN (NOT TO EXCEED $150,000.00)

On recommendation of Mr. Walker and motion of Mr. Toppino, seconded by Mrs. Appell, the Board approved an Interlocal Agreement and piggyback contract with Texas Education Service Center Region 19 through Allied States Cooperative (a State Agency) for Trenchless Technology Services awarded to Murphy Pipeline Contractors, Inc., RFP #13-6903, for replacement of watermain in the amount not to exceed $150,000.00.

DU0-08. CONSIDERATION TO PROCEED WITH CONSTRUCTION OF A NEW 4 MGD SEAWATER TREATMENT SYSTEM ON STOCK ISLAND PENDING BUDGET APPROVAL ($38,000,000.00 ESTIMATE) FKAA Board Minutes June 28, 2017 Page 7

No vote was taken on this Item. Staff will respond to questions from the Board at the July 26, 2017 Board Meeting.

BOARD OF DIRECTORS

BOD-01. APPROVAL OF INTERNAL AUDIT COMPLIANCE REPORTS FOR THE PERIOD FROM OCTOBER 1, 2015 TO SEPTEMBER 30, 2016 PRESENTED AT THE AUDIT COMMITTEE MEETING ON FEBRUARY 23, 2017 {SPONSOR: RICHARD J. TOPPINO, AUDIT COMMITTEE CHAIRMAN)

On motion of Mr. Toppino, seconded by Mrs. Appell, the Board approved the Internal Audit Compliance Reports for the period from October 1, 2015 to September 30, 2016 presented at the Audit Committee Meeting on February 23, 2017.

BOD-02. BOARD DISCUSSION

Mr. Toppino recommended a drop in price as a way to promote reclaimed water use and asked staff to provide the number of customers currently connected to reclaimed water. He also asked if the Navy has been contacted about reclaimed water connection.

ADJOURNMENT

With there being no further business, the meeting was adjourned at 11 :36 a.m.

***********************************************

FLORIDA KEYS AQUEDUCT AUTHORITY

By: ------Attest: ]. Robert Dean, Chairman

David C. Ritz, Secretary/Treasurer FKAA Board Minutes June 28, 2017 Page 8

ATTENDANCE

BOARD MEMBERS

J. Robert Dean Richard J. Toppino David C. Ritz Antoinette M. Appell Cara Higgins

FKAA STAFF

Kirk C. Zuelch Julie Cheon George Blanco Kerry G. Shelby Denise Preuss Elishea Strickland Thomas G. Walker Jerry Jarrett Raquel Ladino Robert T. Feldman Janet Coley Olivia Reyes Timothy Esquinaldo

MEMBERS OF THE PUBLIC

Lyle Munce - Carollo Engineers BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY

AGENDA ITEM: OOC- 0\ TAB: CONSENT: [X] REGULAR: D

MEETING DATE: July 26, 2017 DIVISION: OFFICE OF COUNSEL

AGENDA TITLE: Consideration to Approve Payment to Bryant, Miller & Olive for Professional Services Rendered and Expenses Incurred for the month of June 2017 Regarding Defense of declaratory judgement, Delaney & Kulikowsky v FKAA and Monroe County ($1,228.06 Monroe County)

ITEM BACKGROUND: This law firm, under primary consultation of Frederick J. Springer, is representing the Authority in the defense of a declaratory judgement, Delaney & Kulikowsky v FKAA and Monroe County. The cost of these legal services will be reimbursed to the Authority by Monroe County as part of the Cudjoe Regional Wastewater System Project.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS:

STAFF RECOMMENDATION (MOTION): The Board of Directors approve payment to Bryant, Miller & Olive for professional services rendered and expenses incurred for the month June 2017 regarding defense of declaratory judgement, Delaney & Kulikowsky v FKAA and Monroe County in the amount of $1,228.06.

SUPPLEMENTAL INFORMATION:

DOCUMENTATION: Included: To-Follow: D Not Required: D Cost to FKAA: $ - ---- BUDGETED: YesO No CJ Cost to Others: $ _ __1.:...._,2_28_.0_6_ $ --~-1,228.-06

Executive Director:~

BOARD ACTION:

Approved: D Tabled: D Disapproved: D Recommendation Revised: D

Comments:______

Date:______Recording Clerk:. ______Brxant - M1ller------Olive

Robert T. Feldman Invoice Date: July 10, 2017 General Counsel Invoice No. 64893 Florida Keys Aqueduct Authority Client No. 25047.022 1100 Kennedy Drive P.O. Box 1239 Key West, Florida 33040

For professional services rendered and expenses incurred regarding defense of declaratory judgment, Delaney & Kulikowsky vs. FKAA and Monroe County

Statement of Legal Services

Hours

06/02/2017 EWN Follow up with counsel for Dump the Pumps in an effort to 0.20 resolve objection to FKAA's subpoena for document production 06/05/2017 EWN Email correspondence with C. Hall and K. Hoyes regarding 0.20 scheduling plaintiffs deposition 06/07/2017 EWN Confer with opposing counsel regarding discovery issues 0.20 06/09/2017 EWN Prepare detailed conferral letter to opposing counsel regarding 2.90 deficiencies in plaintiff's response to FKAA's discovery requests; email correspondence with C. Hall regarding various discovery and strategy matters; being to prepare for deposition of plaintiff 06/23/2017 EWN Confer with opposing counsel regarding discovery matters 0.30 06/28/2017 EWN Research potential mediators; coordinate mediation; review 1.00 order setting pre-trial schedule

Current Services 4.80 $1,200.00 Total No Charge Hours 0.00

Net Fees after Billing Adjustment $1,200.00

Page: 1 Invoice Date: July 10, 2017 Invoice No. 64893 Florida Keys Aqueduct Authority Client No. 25047.022 Recapitulation Timekeeper ~ Rate To1fil Elizabeth W. Neiberger 4.80 $250.00 $1,200.00

Expenses Incurred Westlaw research 28.06

Thru 06/30/2017 $28.06

Payments 06/19/2017 Payment Check 54513 Invoice 64514 1,105.00 07/05/201 7 Payment Check 54825 Invoice 64769 6,090.00 7,195.00

Total Current Work 1,228.06 Previous Balance Due 0.00 Balance Due $1,228.06

Please Reference Client Number On Checks And Wire Transfers

Mail Checks to: 101 North Monroe Street, Suite 900 Tallahassee, FL 32301

Send wire transfers to Capital City Bank, ABA #063100688 for credit to Bryant Miller Olive, Account #2132834901 Thank you for your business

Page: 2 Westlaw Charge Calculation I I I 'For the Month of March 2017 I I I I I I I I Billable Amount Bill Total % Billable I Contract Amoun1I Total Arnoun1 Billable to Clients I 58,006.10 132,228.16 0.43871 52181 $ 2,2.89.04 I 1 I I I I I I - Bill amt oer clientl Bill Total % Billable !Contract Amount Total amount oe.r client I Client# I initials

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• lt-.Cl.lllll S 11'1'1.IC:\BI.F Ti\Xt:S 1000373 llJ(l z I 11 I BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY

AGENDA ITEM: DUO- 01 TAB: CONSENT: [K] REGULAR: D

MEETING DATE: JULY 26, 2017 DIVISION: UTILITY OPERATIONS

AGENDA TITLE: Consideration to approve the abandonment of right-of-way described as a portion of Severino Drive in lslamorada, 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.

ITEM BACKGROUND: The FKAA has meters located within the area of requested abandonment. The Customer agrees to grant an easement encompassing all utilities and all appurtenances.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: N/A

STAFF RECOMMENDATION (MOTION): Board approve the abandonment of right-of-way described as a portion of Severino Drive in lslamorada, 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.

SUPPLEMENTAL INFORMATION: Attached

DOCUMENTATION: Included: D To-Follow: D Not Required: D Cost to FKAA: $ _____ BUDGETED: Yes D No CJ Cost to Others: $ _____ Total Cost: $ ____ _

DEPARTMENT: DEPARTME TOR APPROVAL: ~. ci. DIVISION DIRECTOR APPROVAL: ______

Reviewed by: Internal Auditor: _ ____ General Counsel: Qzrr Executive Director:-¥-

BOARD ACTION:

Approved: D Tabled: o Disapproved: o Recommendation Revised: o

Comments:______

Date :. ______Recording Clerk:______Board Item July 26, 2017

No Objection to the abandonment of that portion of Right-of-way of Severino Drive in Islamorada, Florida as described below:

A Portion of Severino Drive, as shown on VENETIAN SHORES PLAT N0.3, according to the Plat thereof as recorded In Plat Book 5, at Page 48 of the Public Records of Monroe County, Florida, and being more particularly described as follows,

Commencing at the Intersection of the Southeasterly right of way line of said Severino Drive with the dividing line between Lots 14 and 15, Block 29 of said VENETIAN SHORES PLAT NO. 3; thence run S.68°05'30"W along the Southeasterly right of way line of Severino Drive for a distance of 15.65 'to the POINT OF BEGINNING of the portion of Severino Drive to be described; said point being the Point of Curvature of a circular curve concave to the Northeast and having for its elements a radius of 40 feet, a delta angle of282°38'08" and a chord bearing ofN.21 °54'30"W said point bears S.73°13'34"E from the center of said curve; thence run in a Southwesterly, Westerly, Northwesterly, Northerly, Northeasterly, Easterly and Southeasterty direction and along the arc of said curve for a distance of 197.32 Feet; thence run S.68°05'30"W along a Southwesterly projection of the Northwesterly right of way tangent line of Severino Drive for a distance of 31.22 feet; thence run S.21 °54'30"'E. for a distance of 50.00 feet; thence run N.68°05'30"E. along the Southwesterly extension of the Southeasterly right of way tangent line of Severino Drive for a distance of 31.22 feet back to the POINT OF BEGINNING. Containing 3,163.9 square feet. The FKAA has a meter in the requested abandonment area.

*Customer agrees to grant an easement encompassing all utilities and all appurtenances.

Applicant: James Bellizi 155 Severino Drive Islamorada, Florida 33036 SKETCH OF DESCRIPT ION ,... \... , c., ... ~ Curve nuMber 3 ~ r ~f>~~ ' "' Ro.dluss 40.00' ,, I ~,,,, \~ Delta. = 51•19•04• Arc• 35.8 3' C, ~a.go'~ -. To.n gent= 19.22' ·~~ ------~- Chor d= 34.64' 5•'3<;;... Ro.dlus= 40.00' \t" Cho r d Brg.= N.86' 14'58' 'J. ~~... Delt a. = 90•00•00• \ ... ..- Arc• 62.83' \~ To.ngent• 40.00' Chord= 56.57' Chord Brg.= N.23' 05' 30'E. i <' ( ' \ t~ ~'o\:, '? , Ro.dlus= 40.00' {,_ Delta.= 282·38' 08' Ar c = 197.32' To. ngent• - 32.03' Chord = 50.00' ~' Chord Brg.= N.21"54' 30' ',/, 0/< \ ,~(?\--o.;. ' 5•'30·-.J.;. ... ' s bf>·~ ";. ... Curve nuMber 1

Ro.dlus• 40.00' De lta.= 141 ' 19 '04' Arc• 98.6 6' To.nge nt= 113,96' Chor d= 75.49' Chord Br g.= S.8 7'25 '58 ' ',/,

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~ ---- C.,..C.r--th ....tt kw i!O •o 80 C, ?:?.!!J 7~~.{~i.~E= GRAPHIC SCAL E -~-?t!..'~ ---~,...... - ... DESCRIPTION1 NOTES• A Port ion of StPvff'lno Drive, o.s shown on VENETIAN StiORES PLAT NO. 3, I. This sketch wo.s Mo.de For the ' SPECIFIC accorcftng to t he Plat t her•of o.s r ecord•d In Plo:t: Book 5, <1t Po.ge PUR POSE' of defining o.nd describing a. 48 o f the Public Records of Monr oe Count y, F'torldo, ond being MOr e port ion o f Se ve r ino Drive r eferred to po.rtk:ulo.r ly desc r lb•d os f ollows, COMMENCING • t t he lnternc t lon of In the Descr iptio n h,.r,.on. This Is 'NOT tM Southeo.ste-rly rfght of wo.y line of' SClld Se v•r lno Dr ive with t he A BOUNDARY SURVEY'. dividing line betnen Lots 14 ond 15, Block 29 of so.Id VENETI AN SHORES PLAT NO. 31 t h•nce r un S.68·0S130'\I. o.long the Southeasterly right of 2. The bearing bo. u for t his s ke tch Is the 0 1 0 5 65 0 centerline o f Se verino Dr ive ha ving a. B:tr~~iNt fol•tv~~~ ~~~~· o~ ~e~e~1S:0°~ 7v, \ ~ btt ·d:~c~~:J, !~Ja ~olnt beo.r lng of N.68'05 '30' E. o.s derived froM being t he Point of Cur"vQtur e of o. clrculo. r curve conco.vt t o the the Plo. t of V•netlo.n Sho r es Plo. t No. 2. Northeo.st ond ho.vlng for It's e le Ments • ro.dlus of 40 feet , o. delta. 3. Additions or deletion s t o surve y Mo.ps or ongt4' of 282' 38'08' ond • chord beorlng of N.21 ' S4'30' 'J. s old point repor ts by othe r t ho.n t he s igning po.rt y ~o.r s S.7J •t3'34"E. f r oM t he c enter oF so.kl curve, thence- run In o or pa.rtle!. Is p l'"'o hlblted withou t writ t en Southw •s:t•r ly. \les ter ly, Northwest t,rly , Nort M ,.. ly, No ,..t h•ost:•rly, c onse nt o f the s igning p o.rty o r partie s . Eo.sterly ond Southeo.sterly dire ction o. nd along th, o. rc o~ s o.Id curYe for a dlsto.nce of 197.32 feet, t he nce run S.68' 05'30'\/. a. long a Southwes t erly proj ection of the Northwes terly right of way tangent lln• oF S,v, rlno Drive For o. dlstonce of 31.22 Feet1 t henc e run S.21'54'30' [ . for o dlsto.nce of SO.OD feet , thence r un N.68'05' 30'E. along the Southwest e rly e xtens ion of t ht Southeasterly right of' wo.y tangent line of S•ver-lno Drive for o. dlstonc• of 31.22 feet bock to the POINT OF BEGINNING. Containing 3,163.9 square fee t .

Phone: (305)853-0066 / Fox; (305)853-0233 88688 Ove"eos Hi hwo P.O. Box 6 19, Tove mior, fl. 33070 Client: Bel/izi Florido Certificate of Au thorizotion No. LB 7882 NOT VAi.JD I her.by c:.rtify that the auN ey her90n wo• pertonnMI under my dlr.ct WflliOUT iHE ~S;;.;.;ect;.;io.. n.... H__ ..:.,_ T,;.o _w.. ns.. h .. ip:... 6;.3;....;So;.;.;u.. th...... R..o .. n g~ e.... 3_ 7_.;;E..o .. sl "*i ~ of'ld I• ond con'.cl to the be.t of my kr,,owle,d9e ortd SIGNATURE ANO THE ORIGINAL Plantation Key Monroe Coonty, Florido FW$ED SEAL OF A fl.ORIDA Drofled: 6-1 2-17 Fieldbook No. 202 LICENSED SURVEYOR ANO MAPPER Drawing No. 14270A Drow n By: DSM Scale: 1" • 40' BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY

AGENDA ITEM: DUO- 0~ TAB: 3 CONSENT: [Xj REGULAR: D

MEETING DATE: JULY 26, 2017 DIVISION: UTILITY OPERATIONS

AGENDA TITLE: 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.

ITEM BACKGROUND: The FKAA has meters located within the area of requested abandonment. The Customer agrees to grant an easement encompassing all utilities and all appurtenances and if a gate is installed in the future, Customer agrees to install a key pad for gate access with FKAA accessible code.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: NIA

STAFF RECOMMENDATION (MOTION): Board 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, "a ll 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.

SUPPLEMENTAL INFORMATION: Attached

DOCUMENTATION: Included: D To-Follow: D Not Required: D Cost to FKAA: $ _____ BUDGETED: Yes D No CJ Cost to Others: $ _ ___ _ Total Cost: $ _ ____

DEPARTMENT: DEPARTM~ TORAPPROVAL: ~ .,• • IL

DIVISION DIRECTOR APPROVAL:

Reviewed by: Internal Auditor:-1J__ General Counsel: ffiru? Executive Director:-¥-

BOARD ACTION:

Approved: D Tabled: o Disapproved: D Recommendation Revised: D

Comments:.______

Date:.______Recording Clerk: ______Board Item July 26, 2017

No Objection to the abandonment of that portion of Right-of-way of Laurel Avenue in Stock Island, Florida as described below:

North Half (1/2) Laurel Avenue A portion of Laurel Avenue on Stock Island, Monroe County, Florida, and is adjacent to Block 23 and Block 32 according to the plat entitled "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, at Page 55, of Monroe County Official Records, being more particularly described by metes and bounds as follows:

Commence at the Northwest corner of 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, at Page 55, of Monroe County Official Records, thence North along the Northerly projection of the West line of Block 32 for a distance of 60.00 feet to the Southwest corner of Block 23 of said plat, said point being the Point of Beginning; thence East along the South line of said Block 23 for a distance of 310.00 feet to a point on the platted shoreline and right of way terminus as shown on said plat; thence along said shoreline in a Southeasterly direction for a distance of 35.05 feet more or less to a point on the centerline of Laurel Avenue; thence West along said centerline of Laurel Avenue for a distance of 335.00 feet back to the Northerly projection of the west line of said Block 32; thence North along said northerly projection for a distance of 30.00 feet back to the Point of Beginning. Said lands containing 9,675 square feet, more or less.

South Half (1/2) Laurel Avenue A portion of Laurel Avenue on Stock Island, Monroe County, Florida, and is adjacent to Block 23 and Block 32 according to the plat entitled "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, at Page 55, of Monroe County Official Records, being more particularly described by metes and bounds as follows:

Begin at the Northwest comer of 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, at Page 55, of Monroe County Official Records, thence North along the Northerly projection of the West line of Block 32 for a distance of 30.00 feet to a point on the centerline of Laurel Avenue; thence East along said centerline of Laurel Avenue for a distance of 335.00 feet to a point on the platted shoreline of said pl&t; thence along said shoreline in a Southeasterly direction for a distance of 35.00 feet more or less to a point on the North line of Block 32, said point also being 360.00 feet East of the Point of Beginning; thence West along said North line of Block 32 for a distance of 360.00 feet back to the Point of Beginning. Said lands containing 10,425 square feet, more or less.

· The FKAA has meters in the requested abandonment area.

*Customer agrees to grant an easement encompassing all utilities and all appurtenances. *If gate is installed in the future, customer agrees to install key pad for gate access with FKAA accessible code.

Applicant: Nick Batty, ESQ. Smith/Hawks Attorneys at Law 13 8 Simonton Street Key West, Florida 33040 BLOCK 23 MAP Of BOUNDARY SURVEY R.E. II 24otl0 LOTS I THRU 7. BOTH INCLUSIVE t LOTS I I THRU 2 I , BOTH INCLUSIVE BLOCK32 ' MCDONALD'S PLAT KEY \NEST, FLORJDA ~· .....

fAST 800.00

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·' _···c ·,.,_ ~-.:.·.. : ·+_ SPECIFIC PURPOSE SKETCH FOR ROAD ABANDONMENT IWAD ABAHDONMerT POB R.E. #00124080-000000 ~~,_ . _. A PORTION OF LAUREL AVENUE ,.. OIi.a. Z67), PG. 1909 SW CORNER OWNER: MURRAY MARINE & SERVICE, INC. I . · j I BOAT BASIN MALONEY SUBDIVISION ~PR::i;:ON D1'-Ml4 BLOCK 23 . . B C K 2 3 MARINA r ,j LO PLAT BOOK 1, PAGE 55 FND 3/4" IP NO ID 1 OFFSET PLAT 1 PA G E THE WEST UNE 0.3' N, 0.3' W BOOK 5 5 MONROE COUNTY, FL i ·:. :~:-,-.:;: .. :-; '. OF BLOCK32 I • \ 50\ITH UNE OF FND NAIL BlOCKD \ ·\ .r,,'ft EAST 310.00'(P) TO ROW TERMINUS 50.00' HOLE CANAL TO CHANNEL 50.00' \ ·-r-;:' 210.00' ~ 7J --.

'-_:,:,,..--PLATTED SHORELINE ROW TERMINUS(P) WEST 335.00'(C) .TO R_OWTERMINUS•. . __,,. ·-··----~ ~-'-·· -- - -·-- ..... - -'~ -- -- NORTH HALF(l/2) OF PAVEMENT LAUREL AVENUE FND 10' METAL SPIKE'. ENOS NORTH UNE OF BLOCK 32 ±9,675 SQ. Fr. OFFSET 10' WEST .,._,_~:=~-- ---t· ---- 50.00' so.oo· 1 •. s so.oo· SO.OD' 50.00' 60.00' 0 - --~ FND NAIL & DISK • R.E. #0Cl1245.{0-000000/ <:.~- LB #6884 OWNER.: WATERS EDG,E COLOJlY, INC. I' OFFSET 3.2' N. I B L O . c I K' 3 2 ·:i· ' . P L' AI.T B O O K j'l ' P A G. E I 5 5 ... ; SCALE: 1" = 40'

LEGAL DESCRIPTION OF PRO OSED ROAD ABANDONMENT - A portion of Laurel Avenue on Stodc Island, Monroe County, Florida, and Is adjacent to Block 23 and Block 32 acmrdlng to the plat entitled "All Lots !, 2, 3, 5, 6, section 35; Lot 2, Section 36; Lot 3, section 26; Lot 2, section 34; Stock Island, Township 67 South, BEARING BASE: ASSUMED PLAT Range 25 East• recorded In Plat Book I, at Page 55, of Monroe County Offldal Records, being more particularly described by metes and bounds as follows: ADDRESS : LAURELAVENUE,STOCKJSLAND,FL33040 Commence at the Northwest comer of Blodc 32, "All Lots I, 2, 3, 5, 6, Section 35; lot 2, Section 36; lot 3, section 26; Lot 2, section 34; Stodc Island, Township 67 South, Range 25 East" recorded in Plat Book I, at Page 55, of Monroe County Official Retx>nls, thena, North along the Northerly projection of the West Hne of Blo

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SCALE: · 1 ~~ 1"=40' 3:

LEGAL DESCRIPTION OF PROPOSED ROAD ABANDONMENT - A portion of Laurel Avenue on Stock Island, Monroe County, Rortda, and is adjacent to Block 23 and Block 32 according to the plat BEARING BASE: ASSUMED entitled "All Lots L, 2, 3, 5, 6, Section 35; Lot 2, Se<:tion 36; Lot 3, Section 26; lDt 2, Section 34; Stock Island, Township 67 South, Range 25 East· recorded in Plat Book 1, at Page 55, of Monroe County Official Records, being more particularly described by metes and ADDRESS: LAUREL AVENUE, STOCK ISLAND, FL 33040 bounds as rollows: Begin at the Northwest comer or Block 32, "All Lots 1, 2, 3, 5, 6, Section 35; Lot 2, Se<:tlon 36; Lot 3, Section 26; Lot 2, Section 34; Stock Island, Township 67 South, Range 25 East" recorded In Plat Book 1, at Page 55, or Monroe County Official Records, thence North PREPARED FOR: JOHN ISAKSEN = NEWLY DESCRIBED LEGAL along the Northeny projection of the West lfne or Block 32 for a distance of 30.00 reet to a point on the centerline of Laurel Avenue; ----- DATE: 02/21/17 thence East along said center1lne or Laurel Avenue ror a distance of 335.00 ~~~to a point on the platted shoreline orsaid plat; thence 1 along said shoreline In a Southeasterly direction for a distance or ~'f,CI)\~t 'r\ldA!/'Jr. jess to a point on the North fine or Block 32, said LEGEND FOR ABBREVIATJQNS point also being 360.00 reet East or the Point or Beginning; the11tli W!!-~ajo\i/J •?"id ,Nolt!) yne or Block 32 for a distance or360.00 reet CU' • CHAIN LINK Fl:NCE IP• IRON PIPE SHH • SANITARY MANHOlE back to the Point or Beginning. 5ald lands containing 10,425 ,squ~ie fee;.,mo<"P,\>' :ess,_ ·,. EOW • EOGE OF WATER IR • IRON ROD SV • SEWER VALVE FHA • FIREHYORANT PB = Pl.ATBOOK XX • PAGEXX TYP • TYPICAL 1••40' TNE 'UllJOHOF T'41S SfESS!OHAlSURVFtOIIAHO-l.0184.! ·~~ I. LEGAL DESCIUmONs THAT HAVE BEEN FURNISHED BY THE CLIENT OR HIS/HER REPRESENTATIVEH AVE NC11"BEEN RESEARCl!ED , •SkO" Al\:,·1 ~ . ~ 1 KK • • t , . 27iMDUSTR1Al.lf)ll),ST'E.8.8JGPUCEIDJ>O BY THE SURVEYORTO OETERM!NETHE ACCURACYOF THESE DESCRIPTIONS HOR HAVEAOJOINING PROPERTIES BEEN 1~':"" I ,R. J RESEARCHEO TO DETERMINE OVERLAPSOR H!AlVS. ""°"""" "'" ..,..,0 , , ~ OfF!CE (305) 872 • 1348 ...,.. .._, "°".+i.ici:...,iffi.;itoiissio.._..,;o,..,..... ' ' F~ (305)872-5622 170126108 ~ 2. THIS IS NOT A SURVEY. J. Robert Dean Chairman Florida Keys District 3 Aqueduct Authority Richard J. Toppino Vice-Chairman 1100 Kennedy Drive District 2 Key West, Florida 33040 Telephone (305) 296-2454 David C. Ritz www.fkaa.com Secretary/Treasurer District 5

Antoinette M. Appell District 4

Cara Higgins District 1

Kirk C. Zuelch Executive Director MEMORANDUM

TO: Board of Directors

FROM: Kirk C. Zuelch, Executive Director )~

DATE: July 19, 2017

SUBJECT: Executive Director's Report - Board of Directors Meeting July 26, 2017

Below is an outline of issues that I' II be di scussing in my Executive Director's report:

1. USGS 2016 Map Of Approximate Extent Of Saltwater Intrusion

The USGS has recently updated their map of approximate extent of saltwater intrusion at the base of the Biscayne Aquifer. The previously maps available were prepared in 2011. The report estimates that the salt front has advanced an average rate of 460 feet per year over the last six years. Attached to this repo1t is a copy of the USGS Map. muSGS science for a changing world

U.S. Department of the Interior Prepared 1n cooperation with Scientific Inve stigations Map 3380 U.S. Geological Survey Miami-Dade County Sheetl of 1

11()"'34 ao,30· 80'36" " 80'32" 80"28" 80°16" 80°1s· II0"'16"

EXPLANATION Naranja Wtollfi1I~ "' I J\ , /

25"30"

25°28"

J Florida City

Florida Keys Aqueduct Authority 25°26'

Evergladn l abor Camp ,. G-3166 ISO Land 0 25°24" Area 0

TPGW-1l e 15,200 25°22' --.. \ \ .\_~ - --- L------l._ \_ / /., .,

25°20'

25·18'

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AGENDA ITEM: DOA-01 CONSENT: D REGULAR: 0

MEETING DATE: July 27, 2017 DIVISION: Administration

AGENDA TITLE: Summary of financial information for October 2016 through June 2017.

ITEM BACKGROUND: Financial highlights Percentage of fiscal year elapsed 75.00% Percentage of budgeted revenue earned 79.90% Percentage of operating budget expended 69.40% Budget amendments year to date 2 Budget line item transfers year to date 17 Operating revenue increase (decrease) year over year 8.82% Operating expense (less depreciation) increase (decrease) year over year 3.22%

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS:

STAFF RECOMMENDATION (MOTION): Informational only

SUPPLEMENT AL INFORMATION:

DOCUMENTATION: Included: D To-Follow: D Not Required: D Cost to FKAA: $ BUDGETED: Yes 0 No CJ Cost to Others: $ Total Cost: $

DEPARTMENT: Finance DEPARTMENT DIRECTOR APPROVAL: bp.

DIVISION DIRECTOR APPROVAL:_-.1-r------A------

Reviewed by: Internal Auditor: --1.L-- General Couns . Executive Director:~

BOARD ACTION:

Approved: D Tabled: o Disapproved: D Recommendation Revised: o

Comments:______

Date: ______Recording Clerk:______FLORIDA KEYS AQUEDUCT AUTHORITY Financial Analysis June 30, 2017 Balance .meet summar / Increase (decrease) Increase (decreas e) Current month-end from last month from last year-end Cash, cash equivalents and investments $ 53,063,752 1.2% 21.7% Capital assets, net of depreciation 265,385,733 0.5% 0.0% Other assets 15,077,223 20.3% 22.8% Total assets 333,526,708 0.5% 3.6%

Deferred outflow of resources 41,540,012 0.00% -0.02%

Long-term debt (including current portion) 212,146,603 0.0% 4.8% Other liabilities 12,020,380 0.3% -27.9% Total liabilities 224,166,983 0.0% 1.6%

Deferred Inflow of resources 372,902 0.00% 0.00%

Net assets $ 150,526,835 1.1% 5.7%

Revenue and e "lens ,umnar/ Increase (decrease) Increase (decrease) from same month from year-to-date Month-to-date last year Year-to-date last year Net operating revenues $ 6,199,866 39.7% $ 47,148,468 8.8% Interest income 45,812 81.2% 269,171 14.6% Other income I 89,098 38.2% I 755,131 40.8% Total income 6,334,776 39.7% 48,172,770 9.0% Operating expenses (less depreciation) 4,131,066 4.7% 27,814,108 3.2% Depreciation 214,518 12.1 % 1,528,333 20.0% Interest expense (507,750) 8.3% 4,160,295 36.3% Other expenses (66,565) 175,015 Total expenses I 3,771,269 1.8% 33,677,751 2.2% Excess of revenues over expenses 2,563,507 14,495,019 System development fees and other contributions 1,399,540 486.4% 5,445,698 291 .3% Change in net assets $ 3,963,047 $ 19 940 717

Net Operating Revenues Capital Expenditures Last ten fiscal years

40,000,000 35,000,000

$4,500,000 30,000,000 25,000,000 $3,500,000 20,000,000 15,000,000 $2,500,000 10,000,000 5,000,000

2008 2009 2010 2011 2012 2013 2014 201 5 2016 2017

1 __ 2017 2018 _ 2015 - - Budgeted revenue I

Financi, ndic~to,- Current month-end Last month-end Last year-end Unrestricted net assets $ 13,116,807 $ 16,515,560 $ (1,644,680) Current cash and investments to current liabilities 2.9 3.0 1.3 # months operating expenses in cash and investments 3.7 5.4 2.7 Working capital (current assets Jess current llab111tles)to total assets 0.1 0.1 0.1 Net assets to total assets 0.5 0.4 0.4 Average rate of return on investments (year to date) 0.67% 0.76% 0.80% % of total annual budgeted revenue earned (year to date) 79.9% 69.4% 107.6% % of total annual budget expended (year to date) 69.4% 91.4% 97.1% Total capital expenditures (year-to-date) $ 7,860,968 $ 5,436,297 $ 9,271,149 i.J Total capital improvement commitments $ 11 ,544,331 $ 13,165,736 $ 12,286,705

7/1 8/2017 Fl orida Keys Aqueduct Authority

STATEMENT OF NET POSITION June 30, 2017

Assets Current assets Unrestricted current assets Cash and cash equivalents 19,017,618 Investments 20,638,595 Receivables: Accounts • customers 6,945,557 Accounts - other 2,218,329 Interest 212,393 Current portion of assessments 342,531 Material and supplies 2,165,786 Prepaid expenses and other current assets 964.969 Total unrestricted current assets 52 505 778 Restricted current assets Cash and cash equivalents 10,435,489 Investments Interest rate swap collateral Total restricted current assets 10,435,489

Total current asset s 62.941,267

Noncurrent assets Rest rict ed noncurrent assets Cash and cash equivalents 2,972,050 Investments Total restricted noncurrent assets 2,972,050

Capital assets Capital assets in service 490,372,928 Construction in progress 23,113,033 Less accumulated depreciation (248,100,228)

Capital assets, net of accumulated depreciation 265 385.733

Assessments receivable, net of current portion 2,227,658 Total noncurrent assets 270.585.441

Total assets 333,526,708

Deferred outflow of resources Accumulated change in fair value of hedging derivatives 15,386,110 Deferred amount on debt refund ings 2,536,711 Pension 8,105,141 Navy Wastewater 15.512.050 41,540,012

Liabilities Current liablilties Current liabilities payable from unrestricted assets Accounts payable 453,123 Accrued wages and benefits 657,069 Unearned receipts Other liabilities 2,844,318 Total current liabilities payable f rom unrestricted assets 3,954 510 Current liabilit ies payable from restricted assets

Customer deposits 2.972.n4 Interest payable 763,387 Advances from other governments 4.329,709 Current portion of credit due to US government 892,709 Current portion of bonds payable 4.35U26 Curent portion of compensated absen ses 296,110 Total current liabilities payable from restricted assets 13.607,515

Total current liabilities 17,562,025

Long-term liabilities Credit due to us government 28,992,065 Bonds payable 141.532.2(6 Derivative instrument. swap 15.386,110 Compensated absences 2,961,109 Net OPEB obligation 2,(40.173 Net pension liabilities 20.a34.900 212 ,146,603 Less current portion (5,541 645) Total long-tenn liabilities 206,604,958

Total liabilities 224,166,983

Deferred Inflow of resources Pension 372,902

Net position Invested in capital assets. net of related debt 128.296.293 Restricted: Debt service 4,845,635 Capha1project s 1,296.050 Other purposes 2,972,050 Unrestricted 13,116,807

Total net position $ 150,526,835

7117/2017 Florida Keys Aqueduct Authority

STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS For the nine months ending June 30, 2017

Month-to-date Year-to-date Increase Increase This :t'.ear Last :t'.ear (decrease) This :t'.ear Last :t'.ear (decrease) Operating revenue Metered revenue water: Residential $ 2,542,359 $ 2,111 ,641 $ 430,718 $ 19,996,311 $ 20,024,481 $ (28,170) Commercial 2,140,865 955,632 1,185,233 15,518,743 14,626,061 892,682 U.S. Navy 105,913 89,726 16,187 854,569 801 ,769 52,800 Other governmental 42 11,160 (11,118) 73,971 102,035 (28,064) Senior citizens 38,880 25,641 13,239 282,836 235,764 47,072 Reclaimed water 14,521 10,772 3,749 98,416 80,663 17,753 Metered revenue wastewater: Residential 560,902 390,736 170,166 4,323,074 2,568,218 1,754,856 Commercial 118,606 60,261 58,345 698,296 458,029 240,267 U.S. Navy 144,924 134,989 9,935 1,161,672 915,455 246,217 Other governmental 986 883 103 7,954 8,091 (137) Senior citizens 12,475 2,600 9,875 77 ,754 25,879 51 ,875

Total metered revenue 5,680,473 3,794,041 1,886,432 43,093,596 39,846,445 3,247,151 Other operating revenue 536,631 686,070 (1 49,439) 4,324,226 3,759,955 564,271

Total operating revenue 6,217,104 4,480,111 1,736,993 47,417,822 43,606,400 3,811,422 Less: abatements (17,238) (42,587) 25,349 (269,354) (277,521) 8,167

Net operating revenue 6,199,866 4,437,524 1,762,342 47,148,468 43,328,879 3,819,589

Operating expenses Source of supply 90,866 63,858 27,008 473,027 567,609 (94,582) Water treatment 480,058 330,211 149,847 2,742,969 2,711 ,322 31 ,647 Transmission 506,999 493,071 13,928 3,857,837 3,895,963 (38,126) Distribution 848,577 978,311 (129,734) 5,773,538 5,626,621 146,917 Customer accounts 382,043 425,553 (43,510) 2,592,236 2,600,321 (8,085) General and administration 1,708,202 1,577,180 131 ,022 11 ,370,452 10,978,907 391 ,545 Wastewater treatment 114,321 91 ,323 22,998 1,004,049 772,742 231 ,307 Wastewater collection 214,518 191 ,290 23,228 1,528,333 1,273,411 254,922 Depreciation 1,241,169 1,301,035 (59,866) 11 ,561,545 11 ,606,147 (44,602)

Total operating expenses 5,586,753 5,451,832 134,921 40,903,986 40,033,043 870,943

Utility operating income 613,113 (1 ,014,308) 1,627,421 6,244,482 3,295,836 2,948,646

Non-operating revenues (expenses) Interest income 45,812 25,280 20,532 269,171 234,966 34,205 Other income 43,286 39 ,190 4,096 485 ,960 381,848 104,112 Gain (loss) on disposal of assets and inventory 2,456 1,802 654 Inte rest expense (507,750) (468,866) (38,884) (4,160,295) (4,072,722) (87,573) Other financing fees 66,565 66,565 (151 ,548) (144,186) (7,362) Bond issuance costs (23,467) (23,467) Total non-operating revenues (expenses) (352,087) (404,396) 52,309 (3,577,723) (3,598,292) 20,569

Net income before contributions 261 ,026 (1,418,704) 1,679,730 2,666,759 (302,456) 2,969,215 Capital contributions 1,399,540 238,655 1,160,885 5,445,698 1,391 ,761 4,053,937

Change in net position $ 1,660,566 $ (1,180,049) $ 2,840,615 $ 8,112,457 $ 1,089,305 $ 7,023,152 Net position, beginning of period 148,866,269 142,414,378

Net position, end of period $ 150,526,835 $ 150,526,835

7/17/2017 Florida Keys Aqueduct Authority

SCHEDULE OF OPERATING EXPENSES For the nine months ending June 30, 2017

Month-to-date Year-to-date Increase Increase This ;tear Last ;tear (decrease) This ;tear Last ;tear (decrease)

Salaries $ 2,065,999 $ 2,105,641 $ (39,642) $ 13,308,780 $ 13,095,763 $ 213,017 Salaries (capitalized) Overtime 80,463 38,546 41 ,917 443,496 457,875 (1 4,379) Overtime (capitalized) Retirement 205,585 189,400 16,185 1,439,926 1,281 ,050 158,876 Payroll taxes 170,115 169,039 1,076 1,070,293 1,061 ,583 8,710 Employee health insurance 516,066 391,325 124,741 2,808,504 2,479,557 328,947 Other benefits 5,110 10,061 (4,951) 59,823 106,061 (46,238) Electricity 260,160 227,107 33,053 2,144,753 1,987,180 157,573 Fuel for power production 7,094 2,873 4,221 42,361 31,883 10,478 Chemicals 253,961 133,138 120,823 1,348,802 1,235,226 113,576 Maintenance and materials 292,863 301,516 (8,653) 2,722,475 2,835,190 (112,715) Maintenance and materials - construction 38,093 178,296 (1 40,203) 208,688 340,061 (131,373) Engineering services 5,790 11 ,416 (5,626) 16,343 140,343 (124,000) Accounting and auditing services 9,593 (9 ,593) 79,500 62,720 16,780 Legal services 3,843 3,843 16,868 20,148 (3,280) Other consulting and support services 116,813 80,373 36,440 879,158 687,523 191,635 Outsourced operations 54,005 17,1 46 36,859 501,874 334,794 167,080 Sludge removal 21,860 21 ,860 105,070 87,699 17,371 Rental of building - real property 1,540 1,560 (20) 13,856 13,90 1 (45) Rental expense • equipment 2,508 3,278 (770) 19,290 44,494 (25,204) Transportation expense 23,427 43,585 (20,158) 231,761 244,222 (1 2,461 ) Insurance-vehicle 6,526 6,966 (440) 58,309 62,011 (3,702) Vehicle repairs (net or insurance re imbursements) 13,094 13,424 (330) Insurance-general liabilities 8,563 10,139 (1 ,576) 76,487 74,147 2,340 General liability claimS(net of insurance reimbursements) 10,265 21 ,248 (10,983) Insurance-workers' compensation 22,346 16,563 5,783 201 ,112 149,068 52,044 Workers compensation (net of ins urance reimbursements) 24,708 17,005 7,703 Insurance-other 70,445 75,276 (4,831) 651 ,058 743,780 (92,722) Other claims and damages (2,854) (2 ,854) (10,939) (54,214) 43,275 Advertising 5,063 4,121 942 39,090 34,440 4,650 Bad debt expense 6,750 5,945 805 60,750 63,161 (2,41 1) Office supplies 3,705 4,909 (1,204) 55,868 71,233 (15,365) Bank charges 52,102 44,523 7,579 394, 123 355,509 38,614 Cashiers over/short (20) 59 (79) (73) 7 (80) Other utilities and technical services 42,523 41 ,376 1,147 347,086 353,131 (6,045) Postage 3,359 3,563 (204) 20,890 22,455 (1 ,565) Travel 2,251 7,344 (5 ,093) 36,909 41 ,512 (4,603) Training 925 15,425 (14,500) 24,556 50,446 (25,890) Miscellaneous 33,323 16,985 16,338 134,773 140,421 (5,648) Public Information and outreach 4,971 7,688 (2,71 7) 47,742 33,259 14,483 Misc. Freight 581 1,129 (548) 5,191 5,930 (739) Less: administrative overhead(ca pitalizedJ (40,270) (25,107) (15,163) (310,179) (318,351) 8,172

Total operating expenses before depreciation 4,345,584 4,150,797 194,787 29,342,441 28,426,895 915,546 Depreciation 1,241 ,169 1,301,035 (59,866) 11,561,545 11 ,606,147 (44,602)

Total operating expenses $ 5,586,753 $ 5,451 ,832 $ 134,921 $ 40,903,986 $ 40,033,042 $ 870,944

7/1712017 Florida Keys Aqueduct Authority

BUDGETARY COMPARISON SCHEDULE For the nine months ending June 30, 2017

Budgeted exeenditures Actual exeenditures % of budget Budget Original Adjusted Month-to-date Year-to-date exeended remaining Capital expenditures: Additions to capital assets $ 3,262,400 $ 3,654,300 $ 330,584 $ 2,475,085 67.7% $ 1,179,215 Salaries (capitalized) 1,061 ,300 1,061,300 89,906 474,306 45% 586,994 Overtime (capitalized) 3,286 44,599 na (44,599) Total Caeital Outla~ 4,323,700 4,715,600 423,776 2,993,990 1,721,610

Operating expenses: Personnel services Salaries 18,265,100 18,265,100 2,065,999 13,308,780 73% 4,956,320 Overtime 507,300 507,300 80,463 443,496 87% 63,804 Retirement 1,668,100 1,668,100 205,585 1,439,926 86% 228, 174 Payroll taxes 1,517,000 1,517,000 170,115 1,070,293 71% 446,707 Employee health insurance 3,600,000 3,600,000 516,066 2,808,504 78% 791 ,496 Other benefits 192,400 192,400 5,110 59,823 31% 132,577 Total eersonnel services 25,749,900 25,749,900 3,043,338 19,130,822 6,619,078

Other operating expenses Electricity 3,214,500 3,214,500 260,160 2,144,753 67% 1,069,747 Fuel for power production 88,700 88,700 7,094 42,361 48% 46,339 Chemicals 2,112,000 2,112,000 253,961 1,348,802 64% 763,198 Maintenance and materials 3,716,900 3,793,500 292,863 2,722,475 72% 1,071,025 Maintenance and materials - construction 38,093 38,093 208,688 na (208,688) Engineering services 140,000 140,000 5,790 16,343 12% 123,657 Accounting and auditing services 82,000 82,000 79,500 97% 2,500 Legal services 30,000 30,000 3,843 16,868 56% 13,132 Other consulting and support services 1,523,500 1,623,500 116,813 879,158 54% 744,342 Outsourced operations 1,045,700 1,045,700 54,005 501,874 48% 543,826 Sludge removal 249,400 249,400 21 ,860 105,070 42% 144,330 Rental of building - real property 16,000 16,000 1,540 13,856 87% 2,144 Rental expense - equipment 78,800 78,800 2,508 19,290 25% 59,510 Transportation expense 525,000 525,000 23,427 231,761 44% 293,239 Insurance-vehicle 110,000 110,000 6,526 58,309 53% 51,691 Vehicle repairs (net of insurance reimbursements) 13,094 na (13,094) Insurance-general liabilities 125,000 125,000 8,563 76,487 61% 48,513 General liability claims (net of insurance reimbursements) 10,265 na (10,265) Insurance-workers' compensation 254,000 254,000 22,346 201,112 79% 52,888 Workers compensation (net of insurance reimbursements) 24,708 na (24,708) Insurance-other 993,300 993,300 70,445 651 ,058 66% 342,242 Other claims and damages (2,854) (10,939) na 10,939 Advertising 75,000 75,000 5,063 39,090 52% 35,910 Bad debt expense 81 ,000 81,000 6 ,750 60,750 75% 20,250 Office supplies 142,400 143,900 3,705 55,868 39% 88,032 Bank charges 455,000 455,000 52,102 394,123 87% 60,877 Cashiers over/short (20) (20) (73) na 73 Other utilities and technical services 676,300 676,300 42,523 347,086 51% 329,214 Postage 57,100 57,100 3,359 20,890 37% 36,210 Travel 145,300 145,300 2,251 36,909 25% 108,391 Training 148,500 147,000 925 24,556 17% 122,444 Miscellaneous 161 ,200 161,200 33,323 134,773 84% 26,427 Public Information and outreach 145,800 115,800 4,971 47,742 41% 68,058 Misc. Freight 12,300 12,300 581 5,191 42% 7,109 Total other oeerating exeenses 16,442,773 16,551,300 1,342,516 10,521,798 6,029,502

Total operating expense budget 42,192,673 42,301,200 4,385,854 29,652,620 12,648,580

Total operating budget 46,516,373 47,016,800 4,809,630 32,646,610 14,370,190

4,809,630 32,s4s,s10 1 69.4%1 $ 14,370,190 Less: Capital expenditures (423,776) (2,993,990) Administrative overhead capitalized (40,270) (310,179) Add: Depreciation 1,241 ,169 11 ,561,545 Total actual operating expenses $ 5,586,753 $ 40,903,986 Florida Keys Aqueduct Authority Cash Summary June 30, 2017

Cash $ 32,425,155.90 Investments 20,638,595.44 Total cash and investments 53,063,751.34

Externally restricted by statute or covenant Debt service reserves (5,609,022.09) Monroe County funds advanced for wastewater construction (3,530,417.15) Grant match for on-site wastewater project (1,296,050.00)

Cash and investments at board's discretion 42,628,262.10

Board restrictions Contingency fund for unanticipated losses (2,982,531.81) Operating reserve (3 months of minimal operating expenses) (9,000,000.00)

Cash and investments after board restrictions 30,645,730.29

Other set asides Customer deposits (2,972,774.00) Reserve for self-retained health care claims (856,466.27)

Cash and investments available for capital projects 26,816,490.02 Capital project contract balances outstanding funded from reserves (11,544,331.22) Bond proceeds held for future projects (6,398,664.00)

Cash and investments available for future projects $ 8,873,494.80 Florida Keys Aqueduct Authority Capital Improvement Plan and Debt Service Budget to Actual Comparison May 31, 2017

Budgeted Rema ining costs Actual costs budget Capital Improvement Plan Distribution replacement 2,000,000 1,794,260 205,740 Transmission main improvements C-905 Key Largo 3,000,000 941,138 2,926,995 Transmission line bridge crossing at C-111 canal 1,800,000 73,005 1,324,961 Stock Island pump station improvements 900,000 475,039 424,961 Chlorination system improvements-Florida City 400,000 90,433 309,567 Pipe materail for near-term bridge failure 500,000 500,000 New seawater reverse osmosis plant-Stock Island 1,500,000 1,500,000 Water mains and meters-Boca Chica 550,000 1,478 548,522 Exhaust air treatment for large generators 125,000 125,000 Collection system improvements -Key Haven 4,400,000 3,294,303 1,105,697 Connection of Navy system to Big Coppitt and necessary expansion 4,800,000 331,818 4,468,182 Navy system upgrades for wastewater pumping systems 250,000 250,000 Florida City wastewater metering station (Miami-Dade) 150,000 150,000 Onsite Wastewater System Grant 184,503 (184,503) Wastewater SCADA 29,893 (29,893) J.Robert Dean WTP swim well 72,044 (72,044) Stock Island RO upgrades 377,544 (377,544) Marathon 4MG tank 1,059 (1,059) Key Haven Force Main 128,814 (128,814) Storage tank flow co ntrol 13,540 {13,540) Marathon customer service building 20,121 (20,121) Capitalized Salaries to be allocated 31,976 (31,976)

$ 20,375,000 $ 7,860,968 $ 12,980,131 Debt Service Interest expense $ 4,568,000 $ 3,652,545 $ 915,455 Principal payments 4,290,000 350,000 3,940,000

$ 8,858,000 $ 4,002,545 $ 4,855,455 Florida Keys Aqueduct Authority

BUDGET AMENDMENTS AND TRANSFERS For the year ending September 30, 2017

Original Budget Adjusted budget Amendments transfers budget Capital expenditures: Utility plant in service $3,262,400 $ 432,300 $ 34,600 $ 3,729,300 Salaries (capitalized) 1,061,300 1,061,300 Overtime (capitalized) Total operating capital expenditures 4,323,700 432,300 34,600 4,790,600

Operating expenses: Personnel services Salaries 18,265,100 (75,000) 18,190,100 Overtime 507,300 507,300 Retirement 1,668,100 1,668,100 payroll taxes 1,517,000 1,517,000 Insurance 3,600,000 3,600,000 Other 192,400 192,400 Total personnel services 25,749,900 (75,000) 25,674,900

Other operating expenses Electricty 3,214,500 3,214,500 Fuel for power production 88,700 88,700 Chemicals 2,112,000 2,112,000 Maintenance and materials 3,716,900 106,200 (29,600) 3,793,500 Engineering services 140,000 140,000 Accounting and auditing services 82,000 82,000 Legal services 30,000 30,000 outsourced operations 1,045,700 1,045,700 Other consulting and support services 1,523,500 100,000 1,623,500 Sl udge removal 249,400 249,400 Rent expense-building 16,000 (500) 15,500 Rent expense-eq uipment 78,800 3,500 82,300 Transportation expenses 525,000 (3,000) 522,000 Insurance - vehicle 110,000 110,000 Insurance - general liabilities 125,000 125,000 Insurance - workers' compensation 254,000 254,000 Insurance - property and flood 993,300 993,300 Advertising 75,000 4,000 79,000 Bad debt expense 81 ,000 81,000 Office supplies 142,400 3,700 146,100 Other utilities and technical services 676,300 676,300 Postage 57, 100 57,100 Travel 145,300 145,300 Training 148,500 (1,500) 147,000 Miscell aneous other 161,200 (1,400) 159,800 Bank charges 455,000 455,000 Public information and outreach 145,800 (34,800) 111,000 Miscellaneous-freight 12,300 12,300 Total other operating expenses 16,404,700 106,200 40,400 16,551,300 Total operating expense budget 42,154,600 106,200 (34,600) 42,226,200

Total operating budget $ 46,478,300 $ 538,500 $ - $ 47,016,800 prepared by Denise Preuss Florida Keys Aqueduct Authority

BUDGET AMENDMENTS For the year ending September 30, 2017

Date of Board Amendment# Approval Account Description and justification Amount

1/25/2017 1-4208-10100-99 Purchase Vac-Con cleaning truck 432,300 2 5/25/2017 1-4001-62001-10 Purchase -Hardware/Software CompassCom 106,200

Total amendments s 538,500

prepared by Denise Preuss Florida Keys Aqueduct Authority

BUDGET TRANSFERS For the year ending September 30, 2017

Account # Account description Oct Nov Dec Jan Feb Mar Apr Mav Jun Jul Aua Sep Total 10100 Utility plant in service $ (52,000' $ 86,600 $ 34,600 60101 Salaries (75,000] (75,000' 60102 Utility plant in service - 60103 Overtime - 60104 Overtime (capitalized) 60401 Retirement - 60402 I payroll taxes - 60403 Insurance - 60404 Other - 61500 Electrictv - 61600 Fuel for power production - 61800 Chemicals - 62001 Maintenance and materials (18,000' (11,600) {29,600' 63100 Enaineerina services - 63200 Accounting and auditing services - 63300 Legal services - 63400 Other consulting and support services 30,000 70,000 100,000 63500 outsourced operations - 63600 Sludge removal - 64100 Rent expense-building (500) 15001 64200 Rent expense-eauipment 3,500 3,500 65000 Transportation expenses (3,000) (3,000) 65601 Insurance - vehicle - 65701 Insurance - aeneral liabilities - 65801 Insurance - workers' compensation - 65901 Insurance - property and flood - 66000 Advertising 4,000 4,000 67000 Bad debt expense - 67501 Office supplies 1,500 (1,100' (1 ,500) 4,800 3,700 67502 Bank charqes - 67505 Other utilities and technical services - 67506 Postage - 67507 Travel - 67509 Trainina (1 ,500: (1 ,5001 67510 Miscellaneous other 1,100 (2,500 (1 ,400 67511 Community Relations - 67512 Water conservation and outreach (30,000) (4,800) 134,800! 67515 Miscellaneous-freiqht -

$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

prepared by Denise Preuss BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY

AGEN DA ITEM: DOA- O:l. CONSENT: D REGULAR: ~

MEETING DATE: July 26, 2017 DIVISION: Administration

AGENDA TITLE: Summary of contractual commitments through June 30, 2017.

ITEM BACKGROUND:

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: As requested by the Board of Directors, task order approvals by the Executive Director in the previous month are included in this report and highlighted in yellow.

STAFF RECOMMENDATION (MOTION): Informational only.

SUPPLEMENTAL INFORMATION:

DOCUMENTATION: Included: To-Follow: D Not Required: D Cost to FKAA: $ ------BUDGETED: Yes GJ NoD Cost to Others: Total Cost: :------Di gitally signed by d re U SS @ dpreuss@fkaa .com P ON: [email protected] DEPARTMENT: --Finance DEPARTMENT MANAGERr-/ APPROVAL: fkaa .cor:n ~~,.~~~017 0714 16,20,3s DIVISION DEPUTY EXECUTIVE DIRECTO.,ROVAL: L Rev""""d by: lnlemal Auditoc G°""" Cruise!: ~ Executive Directoc ¥

BOARD ACTION:

Approved: Tabled: Disapproved: 1 Recommendation Revised:

Comments:______

Date:______Recording Clerk:______f'lcrida, 1<.e:,t.$-'Aq~ Authority Summary of contractual commitments Friday, June 30, 2017 Awarded contract Amendments / Vendor name Contract # Project Approved Total paid to date Remaining Total FKAA Capital amount change orders commitment Commitments Water construction contracts 6/30/2017 J.A. LaRocco Enterprises 1094-08 Ocean Reef Transmission Replacement Board 3,225,656.30 883,566.00 2,342,090.30 2,342,090.30 Florida Design Contractors, Inc. 1141-15 Chlorination lmprovments Florida City Plant Board 106,900.00 104,762.00 2,138.00 2,138.00 NV5, Inc. 1145-16 Biscayne Aquifer Saline Water Monitoring Wells Board 93,935.00 4,000.00 61,505.00 36,430.00 36,430.00 Florida Design Contractors, Inc. 1157-17 Tank Demolition and Misc. Water System Improvements Board 320,600.00 320,600.00 320,600.00 Florida Design Contractors, lnc. 2309-15 Stock Island distribution and backpump improvements Board 1,298,000.00 106,900.00 1,346,322.03 58,577.97 58,577.97 Giannetti Contracting 2297-13 Cudjoe inner islandswater mains Board 1,568,100.00 3,218,981.97 4,112,343.22 674,738.75 674,738.75 Douglas N. Higgins, Inc. 2323-16 Key Haven Utility Improvements {B & C) Board 1,430,000.00 172,785.84 1,257,214.16 1,257,214.16 Charley Toppino and Sons, Inc. 2324-16 Key Haven Utility Improvements {D, E, & F) Board 800,000.00 438,468.44 361,531.56 361,531.56 Charley Toppino and Sons, Inc. 2327-17 United St White St to Whitedhead St Water Main Replacement Phase I Board 601,635.10 601,635.10 601,635.10 Tota l water construction contracts 5,654,955 .84 5,654,955 .84 Water project design contracts

CH2MHill CH4-15 Emergency operations plan for transmission main crossings Board 45,648.00 59,163.00 42,263.74 62,547.26 62,547.26 Engineering Svcs for the Assessments & Design of Cathodic Protection CH2MHill CH6-17 Board Systems on FKAA's Water Transmission Mains 211,964.00 211,964.00 211,964.00 Black and Veatch 1130-14 Water/revenue loss management Board 139,596.00 35,355.70 165,560.81 9,390.89 9,390.89 Atkins 1133-15 Marathon distribution system & integration hydraulic model support Exec. Dir. 21,580.00 31,820.00 47,754.04 5,645.96 5,645.96 AECOM 1137-15 C-111 transmission main crossing Board 204,545.00 195,506.37 9,038.63 9,038.63 TKW 1142-16 Replace portion of 12" water trans CR905 Board 64,670.00 54,610.00 92,265.62 27,014.38 27,014.38 Mathews Consulting 3224-16 Marathon distribution improvements Board 184,726.00 3,399.50 166,251.14 21,874.36 21,874.36 Water Science Associates 1130-14 Professional service agreement Exec. Dir. 45,000.00 170,000.00 209,532.71 5,467.29 5,467.29 Water Science Associates 1145-16 Modify swim data Board 29,500.00 58,000.00 72,800.00 14,700.00 14,700.00 Total water project and design contracts 367,642 .77 367,642 .77 Total water capital improvement commitments 6,022 ,598.61 6,022,598.61

Wastewater construction contracts 3rd Generation Plumbing Inc. 4029-09 Decentralized Wastewater Treatment Demostration Project Board 362,967.00 123,346.03 239,620.97 239,620.97 Wharton·Smith Inc. 4051-12 Cudjoe SWRF Board 21,872,000.00 1,306,464.00 22,897,439.53 281,024.47 Giannetti Contracting 4052-12 Cudjoe wastewater collection system inner islands Board 34,154,710.00 8,303,263.73 40,265,156.81 2,192,816.92 Layne Heavy Civil, Inc. 4053-12 Cudjoe design build outer islands Board 74,558,000.00 25,604,526.66 92,888,631.47 7,273,895.19 Douglas N. Higgins, Inc. 4058-15 ABC Key Haven Utility Improvements (A, B, C} Board 4,387,000.00 2,219,749.65 2,167,250.35 2,167,250.35 Charley Toppino and Sons, Inc. 4058-15 DEF Key Haven Utility Improvements (D, E, F) Board 1,966,744.00 884,090.87 1,082,653.13 1,082,653.13 Layne Heavy Civil, Inc. 4059-15 Long Key wastewater system Board 921,475.00 379,509.93 541,965.07 Layne Christensen Co. 4061-15 Cudjoe AWRF deep well injection Board 4,046,202.00 (344,513.68) 3,500,166.60 201,521.72 Charley Toppino and Sons, Inc. 4062-16 Boca Chica NAS Key West Pump Station and FM Extension Board 1,847,000.00 173,468.00 271,755.16 1,748,712.84 1,748,712.84 Key Honey Contracting LLC 4067-16 Middle Torch Key Extension to the CRWS Board 2,435,400.00 964,681.20 1,470,718.80 Key Honey Contracting LLC 4068-17 No Name Key Low Pressure Sewer System Board 2,092,400.00 2,092,400.00 Total wastewater construction projects 19,292,579 .46 5,238,237.29 Wastewater project design contracts Chen & Associates 4044-10 J.R. Dean WTP wastewater meter Exec. Dir. 24,974.00 10,986.00 30,113.81 5,846.19 5,846.19 Chen Moore 8032-16 Navy transmission Board 187,600.00 115,740.00 192,517.67 110,822.33 110,822.33 CH2MHill CHl0-12 Programming planning of Cudjoe Regional wastewater system Board 284,196.00 5,287,080.00 5,046,011.83 525,264.17 Mathews Consulting 4054-12 Engineer of record for Cudjoe inner islands Board 140,000.00 823,011.50 903,203.36 59,808.14 Wastewater Technologies 4029-09 Decentralized wastewater treatment demo Board 100,000.00 26,986.66 73,013.34 Mathews Consulting 4058-15 Key Haven Utility Improvements Board 135,181.00 70,164.50 65,016.50 65,016.50 Brown and Caldwell 4069-17 Big Coppitt WWTP Expansion Exec. Dir 34,745.00 34,745.00 34,745.00 Mathews Consulting 4070-17 Key Haven Force Main Board 194,281.80 127,216.50 67,065.30 67,065.30 Total wastewater project design contracts 941,580 .97 283,495.32 Total wastewater capital improvement commitments 20,234,160 .43 5,521,732. 61 Total contractual commitme nts $ 26,256,759 .04 $ 11,544,331 .22

Page 1 F'lori'da,K~!-Aqueduct-A«thcrlty Summary of contractual commitments Friday, June 30, 2017

Awarded task order Remaining task Vendor name Tast Order# Project Approved Amendments Total paid to date amount order Task orders I

CH2MHill 1-17 SCADArepair and upkeep Board 45,000.00 75,000.00 38,316.22 81,683.78 CH2MHill 2-17 General Engineering Services Exec. Dir. $20,000.00 20,000.00 ACR, LLC 1132-15 Water portals Board 60,000.00 60,000.00 53,000.00 67,000.00 CH2MHill 2-15 Engineering services Exec. Dir. 20,000.00 18,171.51 9,971.61 28,199.90 CH2MHill 2-16 SCADArepair and upkeep Board 45,000.00 45,000.00 84,123.78 5,876.22

CH2MHill 3-16 Modifications to Stock Island, Desai and backpump distribution stations Board 88,322.00 14,664.00 $13,295.40 CH2MHill 3-17 General technical electrical services Extc. Dir. $25,000.00 1,797.40 $23,202.60 CH2MHill 4-17 SCADASys tem Softwa re Updates Board $64,688.00 63,079.58 1,608.42 CH2MHill 5-15 Technical and programming service Exec. Dir. 24,492.00 14,353.39 10,138.61 Douglas N. Higgins, Inc. ITB-15-021 Utility service contract Board 500,000.00 276,060.52 223,939.48 Mathews Consulting 1793 Engineering services Board 50,000.00 48,633.32 1,366.68 Mead and Hunt 1101-09 Technical and strategic assistance for NAS Key West water Board 30,000.00 43,480.00 60,245.62 13,234.38 Mead and Hunt 4037-09 NAS Wastewater utility services Exec. Dir. 24,600.00 53,670.00 74,895.00 3,375.00 Raftelis 01-2015 Utility fin ancial consulting services Exec. Dir. 24,000.00 13,075.36 10,924.64 Raftelis 02-2014 System development charges Exec. Dir. 24,365.00 13,562.85 10,802.15 Raftelis 02-2016 Water Revenue Sufficiency Exec. Dir. 27,200.00 15,510.97 11,689.03 Raftelis 03-2016 Wastewater Revenue Sufficiency Exec. Dir. 18,900.00 - 10,415.48 8,484.52 Southeastern Investment Securities 01-16 General requirements Exec. Dir. 24,000.00 1,730.00 22,270.00

Total task orders $ ss1, o90 .s1 I

(U! f~I mon!h ~cklot>Otl\Of (h.l"Cft I),, f~ t

Page 3 BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY

AGENDA ITEM: DU0-01 CONSENT: D REGULAR: [Kl

MEETING DATE: July 26, 2017 DIVISION: UTILITY OPERATIONS

AGENDA TITLE: Status Report on Cudjoe Regional Wastewater Project.

ITEM BACKGROUND: The attached report provides the activities conducted over the past month and the upcoming activities planned and anticipated in the near future.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: The Board requested Staff to include this Report as part of the monthly Agenda package.

STAFF RECOMMENDATION (MOTION): NIA

SUPPLEMENTAL INFORMATION: Attached status report.

DOCUMENTATION: Included: To-Follow: D Not Required: D Cost to FKAA: $ _____ BUDGETED: Yes D NoD Cost to Others: $ _____ Total Cost: $ -----

DEPARTMENT: Engineering DEPART AGER APPROVAL: ~ . l: l. ,

DIVISION DIRECTOR APPROVAL: ______..,,.______Reviewed by: Internal Auditor: -;fl'-- General Counsel: ~.....,..,.,._,_*'" Executive Director:~

BOARD ACTION:

Approved: D Tabled: D Disapproved: D Recommendation Revised: o

Comments: ______

Date:______Recording Clerk:______CURRENT STATUS REPORT FOR CUDJOE REGIONAL WASTEWATER PROGRAM

(As of July 14, 2017)

• Inner Islands' Collection Scattered grinder stations to be completed on various islands. System Action: Close-out wastewater contract with Giannetti Contracting.

• Outer Islands' Collection Installation of grinder stations on all islands on-going. Chimney System Seals for manholes are being installed on all islands. Installation of Telemetry System to start next month.

Action: Complete remaining project work by end of this calendar year.

• Added Collection Areas Collection system work on Big/Middle Torch Keys continues this month with Big Torch Expansion under design. No Name Key collection system Notice to Proceed issued; work to commence this month.

Action: Continue collection system work on Torch Keys. Initiate construction on No Name Key.

• Advanced Wastewater Facility in full operation. Treatment Facility Action: Close-out construction contract with Layne Christensen.

• On-Site Systems Permits for several properties issued by FDOH for on-site systems on Torches and Lower Sugarloaf. Construction complete on 4 systems. Project for Pigeon Key and Veterans Park in design with joint effort from Monroe County.

Action: Initiate next set ofsystems for design, permitting, and construction.

ll Page ICudjoe WW Tracking Jun-17

Project balances as of 09/30/16 Year to Date Expenses Current Month Expenses Total Project Expenses to Date Contractors $ 153,435,523.91 $ 8,834,712.42 $ 509,040.39 $ 162,779,276.72 Engineers $ 5,883,170.02 $ 535,576.33 $ - $ 6,418,746.35 Labor $ 3,392,563.05 $ 473,102.09 $ 57,033.15 $ 3,922,698.29 Benefits $ 886,135.83 $ 143,610.27 $ 18,085.40 $ 1,047,831.50 Work orders $ 75,837.96 $ 272,404.92 $ 14,935.58 $ 363,178.46 Misc payments $ 69,917.00 $ - $ 69,917.00 Direct Purchases $ 7,406,814.94 $ 347,510.44 $ 27,055.51 $ 7,781 ,380.89 Legal Matters $ 644,196.44 $ 21,622.50 $ 7,195.00 $· 673,013.94 Consultants/Labs $ 193,579.13 $ 45,730.00 $ - $ 239,309.13 Permitting $ 14,635.04 $ - $ 14,635.04 Operational Overhead $ 245,272.00 $ 27,881.67 $ 2,666.26 $ 275,819.93 Utility $ 415,232.20 $ 7,710.01 $ - $ 422,942.21

$ 172,662,877.52 $ 10,709,860.65 $ 636,011.29 $ 184,008,749.46

!Total expenses date to Is 1s4,oos,149.46 1 BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY

AGENDA ITEM: DUO- OQ.. CONSENT: D REGULAR: ~

MEETING DATE: July 26, 2017 DIVISION: UTILITY OPERATIONS

AGENDA TITLE: Consideration to approve the purchase of AMI equipment for installation of Phase 1 data collectors from Sunstate Meter & Supply, Inc., sole source Neptune Distributor, in the amount not to exceed $370,000. ITEM BACKGROUND: .The purchase of the AMI equipment will allow the FKAA staff to implement the installation of Phase 1 data collectors under the CIP - Project 2337-17. The installation of the AMI equipment will provide real-time meter reading to enhance water loss recovery, improve response time for stuck meter, high consumption, and allow customers to "View My Meter" to identify leaks on the customer side, and enhance water conservation efforts

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: N/A

STAFF RECOMMENDATION (MOTION): Staff recommends that the Board of Directors approve the purchase of AMI equipment for installation of Phase 1 data collectors in the amount not to exceed $370,000.

SUPPLEMENTAL INFORMATION: See attached cost proposal and sole source letter.

DOCUMENTATION: Included: 0 To-Follow: D Not Required: D Cost to F KAA: $ 370,000 BUDGETED: Yes [KJ No CJ Cost to Others: $ Total Cost: $ ---~--370,000 DEPARTMENT: Engineering DEPARTMENT DIRECTOR APPROVAL: ~.c:il-

DIVISION DIRECTOR APPROVAL: ______~ ..,,.,...._--:-,:::::------Reviewed by: Internal Auditor: -fl- Executive Director: ] $)-,

BOARD ACTION:

Approved: D Tabled: o Disapproved: D Recommendation Revised: o

Comments: ______

Date: ______Recording Clerk: ______Sunstate Meter & Suool.Y, Inc. Quote #: 53268 Phone: (352) 332-7106 Fax: (3521332~5604 ***PROPOSAL*** Page: 1

Date: 06/21/2017 Customer: 100495 Salesman:Jay Meyers

Bill To: Ship To:

FLORIDA KEYS AQUEDUCT AUTH. FLORIDA KEYS AQUEDUCT AUTH. 1100 KENNEDY DR. 7000 FRONT STREET KEY WEST, FL 33040 STOCK ISLAND USA KEY WEST, FL 33040 USA

Expiration I Order Date I Gust PO# I Shipping Instructions Invoice I 0612112017 I ALLOW

Quantity UM Part#/Description Price Amount 24 EA 13458-000 $6,250.00 $150,000.00 R900 GATEWAY COLLECTOR (V4) CELLULAR BACKHAUL

750 EA RW2G1351320 $159.50 $119,625.00 5/8" R900i PIT GALLON ECODER W /STUBBY ANTENNA E-MAIL S/N & MIU#

1,000 EA 13586-200 $99.50 $99,500.00 R900 HIGH GAIN ANT. 6' CABLE DROP SHIP FROM NEPTUNE

Terms: Net 30 days Subtotal $369,125.00 Remit Payment to: Tax (Sales Tax Ex) $0.00 Sunstate Meter & Supply, Inc. Ship & Handling $0.00 14001 W. Newberry Road Less Deposit $0.00 Newberry, FL 32669-2710 Amount Due $369,125.00 Quoted by: ______June 21, 2017

Mr. Rick Kellough Florida Keys Aqueduct Authority

Dear Mr. Kellough,

Please note that Sunstate Meter and Supply, Inc., is the sole authorized Neptune Distributor with a resell supply agreement in the State of Florida.

The geographical area of responsibility assigned to them includes all Counties within the State of Florida.

Types: Classes of customers exclusively assigned are: Municipalities, private water companies, contractors, and plumbers.

Hence, our Distributor(s) are required to maintain a sufficient inventory of Neptune Water Metering Products to provide customer field servicing, including maintenance contracts.

Thank you in advance for your cooperation.

Sincerely,

Terry D. Gullett

Terry D. Gullett Senior Territory Manager Neptune Technology Group, Inc.

NEPTUNE TE CH N OLOGY GR OU P INC. 1600 Alabama Highway 229, Ta llassee, AL 36078 • 334.283 .6555 • www.neptunetg.com BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY

AGENDA ITEM: DUO- 03 CONSENT: D REGULAR: ~

MEETING DATE: July 26, 2017 DIVISION: UTILITY OPERATIONS

AGENDA TITLE: Consideration to approve the award of IFB-0008-17 to HD Supply Waterworks for the purchase of 4" C-900 pipe for water construction activities related to the Middle/Big Torch outreach area - Project# 2331- 17 by the FKAA Construction Crew in the amount not to exceed $83,000. ITEM BACKGROUND: On December 21, 2016 the FKAA Board of Directors accepted the Executive Director's Report, E0-01 , Potable Water to No Name Key and the Torch Keys. The FKAA Construction Crew has been assigned to install the water system in these areas. FKAA advertised IFB-0008-17, Purchase of 4" C-900 Pipe in the newspaper, website, and Demand Star. Three (3) bids were received. The lowest, responsible, responsive, and qualified bidder was HD Supply with a unit cost per linear foot of $2.22. Results are summarized below.

Bidder's Name Cost per Linear Foot Ferguson Waterworks $2.35 Fortiline Waterworks $2.45 HD Supply Waterworks $2.22

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: N/A STAFF RECOMMENDATION (MOTION): Staff recommends that the Board of Directors approve the award of I FB-0008-17 to HD Supply Waterworks for the purchase of 4" C-900 pipe for water construction activities related to the Middle/Big Torch outreach area by the FKAA Construction Crew in the amount not to exceed $83,000.

SUPPLEMENTAL INFORMATION: See attached. It is estimated that 37,000 linear feet of pipe will be required to complete the water system in the Torch Keys. Staff has confirmed with HD Supply that they will honor the $2.22 per linear foot cost of pipe with the increase in quantity of pipe for a total cost not to exceed $83,000.

DOCUMENTATION: Included: To-Follow: D Not Required: D Cost to FKAA: $ ____83_,_,_oo_o_ BUDGETED: Yes [KJ No CJ Cost to Others: $ Total Cost: $ ____83__,,_oo _o_

DEPARTMENT: Engineering DEPARTMENT DIRECTO APPROVAL:

DIVISION DIRECTOR APPROVAL: ______++ ------Reviewed by: Internal Auditor: -5-- General Counsel:--1,A--1...11-- Executive Director:~

BOARD ACTION:

Approved: D Tabled: o Disapproved: D Recommendation Revised: D

Comments: ______

Date: ______Recording Clerk:______J. Robert Dean Chairman District 3

Florida Keys Antoinette M. Appell p Vice-Chairman Aqueduct Authority District 4 1100 Kennedy Drive Key West, Florida 33040 d / David C. Ritz Telephone (305) 296-2454 ~ Secretary/Treasurer District 5 www.fkaa.com ~\\'i ~ e, Cara Higgins ~~\ sri:}., d'••• District 1 Richard J.Toppino ~v District 2 Kirk C. Zuelch Executive Director

MEMORANDUM

TO: Jolynn Reynolds, Manager of Engineering

FROM: Krystal Waldner, Purchasing Adm in

DATE: June 14, 2017

SUBJECT: FKAA-IFB-0008-17, Purchase of 4" C-900 Pipe

Subject bid opening was conducted on June 9, 2017. This bid was advertised once in one newspaper, as well as being published on the Authority's web site, and Demand Star. Three bids were received, which are as follows:

Vendor Total Price Ferguson Waterworks $42,300.00 Forti line $44,100.00 HD Supply $39,960.00

It is recommended that we award the bid to HD Supply as the lowest qualified bidder for this product. Please see the attached bid for your review. Please ensure that a purchase order is generated upon acceptance of the recommendation.

ACCEPTED:_~~~X~~~- UNACCEPTED: ______~Reason for Not

• Digitally signed by [email protected] JOreyn [email protected] DN: [email protected] Date:2017.07.1710:22:31 ·04'00' Accepting Bid: ------

General Counsel's Signature (If Bid Not Accepted): ______FLORIDA KEYS AQUEDUCT AUTHORITY BID OPENING SUMMARY

Bid number: FKAA-IFB-0008-17

Bid description: Purchase of 4" C-900 Pipe

Bid opening date: -"9c..:·J,_,,u,,_,n_:·1..,_7______rme: 4:00P.M.

Bid Bid Total Lump Sum Comments Bidder's Name sealed si ned Bid Price

Ferguson Waterworks

Fortiline Waterworks tit/ /00 · QD / / ft- T 11 HD Supply Waterworks v

Department Director or Designee

Purchasing and Inventory Control Manager/Designee

Buyer/Purchasing Administrator

Internal Auditor

Time bid opening adjourned Sign in Bid Sheet for: IFB-0008-17 Description: Purchase of 4" c-900 Pipe Date: Friday, June 09, 2017 Time: 4:00pm **Please Print Name and Company Name

Name Comoanv Name ,..- VA-y.:t:=I) J ACK!::o .J -f""4A--- Me.Lt nrl~ ~ llln., ,e1- l1c{J/J- ~ «NiAµ£) pcA-lr FLORIDA KEYS AQUEDUCT AUTHORITY INVITATION TO BID: COMMODITIES/SERVICES (BIDDERS ACKNOWLEDGMENT)

MAIL BIDS TO: FLORIDA KEYS AQUEDUCT AUTHORITY 7000 Front St. (Stock blaad) KEY WEST, FLORIDA 33040 (No USPS dtliveries, FedEx and UPS only.)

e 1 of 4 305 296-2454 PROJECT# FILE# BID #-FKAA-IFB-0008-17 BIDS WILL BE OPENED: June 8 , 2017 at 4:00pm BID mLE: Purchase of 4" C-900 Pipe. 7000 Front St. Key Wc:st, FL 33040 NO USPS Delivery, Fed Ex or UPS ONLY and may not be withdrawn within days after such date and time.

Delive Date Will Be 4T06W of Purchase Order.

NAME OF VENDOR: HD SUPPLY WATERWORKS MAILING DATE : 6/6/2017

MAILCNG ADDRESS: 18701 SW 108TH AVENUE

CITY-STA TE-ZIP: MIAMI, FL 33157 7 6-214- 229 TELEPHONE NUMBER:

I certify that this bid is made without prior understanding. agreement, or oMection with any corporation, firm, or person submitting a bid for the 5ame A aterials, supplies, or equipment and is in all respects fair and without collusion r fraud. I aaree to abide by all conditions of this bid and certify that I am uthorized to sign this bid for the bidder and that the bidder is in compliance 'th all requirements of the Invitation to Bid. including but not limited to, ertification requirements.

GENERAL CONDITIONS BIDDER: To insure acce lance of the bid follo'II' these iostnactloas

SEALED BIDS: This form must be executed and returned with one copy of all 3. BID OPENING: Shall be public, on the date and at the time specified on bid sheets, as well as all addenda acknowledged. The face of the envelope shall the bid form. All bids received after that time shall become the property contain, in addition to the above address, the date and time of the bid opening. ofthe Authority and remain unopened. It is the bidder's responsibility to and the bid number. Do not include more than one bid per envelope. All bids are assure his bid is delivered at the proper time and place of the bid subject to the conditions specified herein. Those that do not comply with these opening. Offer, by facsimile, telegram or telephone arc not acceptable. conditions are subject to rejection. 4. PRICES QUOTED: Deduct trade discounts and quote firm net prices. I. EXECUTION OF BID: All bids must contain a manual sigr,awre of an Unless otherwise specified, all prices quoted in this bid will remain firm authorized representative in the space provided above to be considered for a period of 60 days. Give both unit price and extended total. In case formal. The company name must also appear on each page of the bid M of a mistake in extensions, the unit price will take precedence. All prices required. F.O.B. destination (unless otherwise specified in special conditions). Prices and extensions should be typed or printed in ink. 2 NO BID: If not submitting a bid, respond by returning one copy of this form, marking it "NO BID", and e,cplain below the reason. Repeated failure a) TAXES: The FKAA docs not pay federal excise and state sales taxes. to quote without sufficient justification shall be ca.use for removal of a Do not include these items on invoices. The applicable tax exemption supplier's name from the bid mailing list NOTE: A bidder; to qualify as a number is shown on purchase orders. respondent, must submit a 'NO BID", and same must be received no later b) DISCOUNTS: Cash discounts for prompt payment shall not be than the stated bid opening date and hour. considered m determining the lowest net cost for proposal evaluation purposes. c) MlSTAKES : Bidders are expected to examine the specifications, REASON FOR "NO BID": delivery schedules, bid prices and extensions, and all instructions pertaining to supplies and services. Fwlure to do so will be at the bidder's risk. In case of mistake in the extension the unit price will govern. d) CONDlllON AND PACKAGING: It is understood and agreed that any item offered or shipped as a result of this bid shall be new (current production model at the time of this bid), unless otherwise specified. All containers shall be suitable for storage or shipment, and all prices shall include standard commercial packaging.

1 GENERAL CONDITIONS CONTINUED

4. (Continued) Discrepancies between the indicated sum of any column of fig,Jrcs and the e) SAFE1Y STANDARDS: Unless otherwise stipulated in the bid, all correct sum thereof will be resolved in favor of the correct sum. Within 60 manufactured items and fabricated assemblies shall comply with calendar days after the opening of Proposals, unless otherwise stated in the applicable requirements of Occupational Safety and Health Act and any Supplementary Conditions of the Documents, the FKAA will issue notice standards thereunder. that it intends to accept one of the proposals or will award the contract to t) BIDDER'S CONDITIONS: Any condi1ioos to be made as pan of the the lowest Base Bid. Acceptance of the Proposal by the FKAA will be by bid, should be submitted by letter with notes thereof on bid sheet for written Notice of Award, mailed or delivered to the oftice designated in the consideration. Proposal. ln the event of the failure of the lowest responsible and g) PAYMENT: The vendor shall be paid upon submission of properly responsive bidder to meet the requirements of the Bid, the FKAA may cenified invoices at the prices stipulated on the bid, after delivery and award the Contract to the next lowest responsible and responsive Bidder. accep1a11ce of the goods and/or services, less deductions if any, as Such award, if made by the FKAA will be made within 60 days after the provided. opening of Proposals. 5. EQUIVALENTS: Unless otherwise specified, any manufacturer's name, 11. ADVERTISING: In submitting a proposal, bidder agrees not to use the trade names, brand names, information and/or caialog numbers listed in a results there from as a part of any commercial advertising. specification arc for information and not to limit competition. Bid any 12. GOVERNMENTAL RES1RJCTIONS: ln the event any governmental brand which meet!I or exceeds the quality of specifications listed for any restrictions may be imposed which would necessitate alteration of the item. lf the bid is based on equivalent products, indicate on the bid form the material, quality, worlc:manship or performance of items offeml on this bid manufacturer's name and number and indicate any deviation from the prior to their delivery, it shall be the responsibility of the vendor co notify specifications as listed. Include fully descriptive literature on item(s). the FKAA at once, indicating in his letter the specific regulation 'Mlich Lacking any written indication of intent to quote an alternate brand or model required an alteration. The FKAA reserves the right to accept any such number, the bid will be considered as a quotation in complete compliance alteration, including any price adjustments, or to cancel the contract at no with the specifications listed in the form. The FlCAA reserves the right to funher expense to the FKAA. determine acceptance of item(s) as an approved equivalent. 13. ASSIGNMENT: Any purchase order issued pursuant to this bid invitation 6. NONCONFORMANCE TO CONTRACT CONDITIONS: Items may be and the monies which may become due are not assignable except with tested for compliance with specifications under the direction of the Florida prior written approval of the FKAA. Dcpanment of Agricultute and Consumer Services. Items delivered not 14. CONFLICT OF INTEREST: The aMrd hereunder is subject to Chapter conforming to specifications may be rejected and returned at vendor's 112, Florida Statutes, wherein it states, in part: " ...al l bidders must disclose expense. These items and items not delivered as per delivery date in bid with their bid the name of any officer, director, or agent \\dJo is also an and/or purchase order may be purchased on the open market. Any increase employee of the FKAA. All bidders must disclose the name of any in cost may be charged llgllinst the bidder. Any violation of these employee who owns directly or indirectly an interest of 5% or more in the stipulations may also result in the vendor's name being removed from the bidder's firm or any of its branches... " FKAA vendor list 15. LEGAL REQUIREMENTS : Applicable provision of all Federal, State, 7. SAMPLES: Samples of items, when required, muse be furnished free of county and local laws, and of all ordinances, rules, and regulations shall expense and, if not destroyed, will, upon request, be returned at the bidder's govern any and all claims and disputes which arise between person(s) expense. Request for the return of samples must be submitted by letter with submitting a bid response hereto an the FKAA, by and through its officers, notes thereof on bid sheet. Each individual sample must be labeled with employees and authorized representatives, or any other person, natural or bidder's name, bid number, and item number. Failure of bidder to either otherwise; and Incle of knov.~edge by any bidder shall not constitute a deliver required samples or to clearly identify samples as indicated may be cognizable defense against the legal effect thereof. reason for rejection of the bid. PATENTS & ROYAL TIES: The bidder without exception, shall 8. DELIVERY: Unless actual date of delivery is specified (or if specified indemnify and save harmless, the FICAA and its employees, from liability delivery cannot be met), show number of days required to make delivery of any nature or kind, including cost and expenses for or on ttcount of after receipt of purchase order in space provided. Delivery time may any copyrighted, patented, or unpatented invention, process, or article become a basis for making an award (see Special Conditions). Delivery manufactured or used in the performance of the cootract, including its use shall be within the normal working hours of the FKAA, Monday through by the FKAA the bidder uses any design, device, or materials covered by Friday, excluding holidays. Upon delivery the FKAA has five working days lette~. patent or copyright it is mutually agreed and understood without to inspect and approve the goods and services, unless bid specifications or exception that the bid prices shall include all royalties or cos. arising purchase order specify otherwise. Inspection and acceptance will be at from the use of such design, device, or materials in any way involved in destination unless otherwise provided. Title to/or risk of loss or damage to the work. all items shall be the responsibility of the successful bidder until acceptance 17. SER VICE AND W ARRAN1Y: Unless otherwise specified, the bidder by the FKAA unless loss or damage results from negligence by the FKAA. shall define any warranty service and replacements that will be provided. 9. INTERPRETATIONS/DISPUTES: Any questions concerning conditions 18. ELIGIBLE ENTITIES: Paragraph (2) (a), Section 287.133, Florida and specifications should be submitted to the buyer no later than five (5) Statutes provides that "A person or affiliate who has been placed on the days prior to the bid opening. Any person who is adversely affected by a convicted vendor list following a conviction for a public entity crime may decision or intended decision shall be subject to the FKAA's procedures for not submit a bid on a contract to provide any goods or services to a public Bid Protests (48-101.11 ). In case ofany doubt or difference of opinion as to entity, may not submit a bid on a contract with a public entity for the the items to be furnished hereunder, the decision of the FKAA shall be final construction or repair of a public building or public work, may not submit and binding on both panics. bids on leases of real property to public entity, may not be awarded or IO AW ARDS: The FKAA reserves the right to accept any Bid or combination perform work as a contractor, supplier, subcontractor, or consultant under of Bid alternates which, in the FKAA's judgement will best serve the a contract wiJh any public entity, and may not transact bus111css with any FKAA 's interest, reject any and all Bids, to \\oaive any and all informalities public entity in excess of the th reshold amount provided in Section and/or irregularities, and to negotiate contract terms with the Successful 287.017, for CATEGORY TWO for a period of(36) months from the date

Bidder, and the right co disregard all nonconforming, non-responsive, of being placed on the convicted vendor list. ff unbal1111ced or conditional Bids. The FKAA reserves the right to reject any 19. LIABILITY: The supplier shall hold and save the FKAA, its officers, one or all Bids, or any pan of any Bid, to waive nny informality in any Bid, agents, and employees harmless against claims by third panies resulting and to award the purchase in the best interest of the FKAA. Discrepancies from the vendor' s breach of contract or the vendor's negligence. in the multiplication of units of work and/or unit prices will be resolved in favor of the unit price.

~OTE: ANY AND ALL SPECIAL CONDITIONS AND SPECJFICATIONS ATT ACHED HERETO WHICH VARY FROM THESE GENERAL CONDITIONS SHALL HAVE PRECEDENCE.

2 FLORIDA KEYS AQUEDUCT AUTHORITY

IFB-0008-17

PURCHASE OF 4" C-900 PIPE

The Florida Keys Aqueduct Authority seeks to purchase 18,000 ft. of 4" C-900 Pipe as described below.

Pipe Description

PIPE, C-900, 4", DR-18 CLASS 150, BELL END with EPDM GASKET, COLOR: BLUE, (20 FT LENGTHS ONLY).

All bids must be firm for a period of2 months from the bid date.

All bids must be FOB destination to the address below:

FK.AA Lower Key Warehouse 7000 Front St. (Stock Island) Key West, FL 33040

A firm delivery date is required.

Questions and Clarifications

Questions regarding this bid should be directed in writing via email to David Jackson, Purchasing Manager at d [email protected].

Bid Requirements

Bids must be signed and clearly marked on the outside, "FKAA-IFB-0008-17 Purchase of 4" C-900 Pipe." Bids must be received no later than 4:00pm Thursday, June gth 2017. Any bids received after this time will remain unopened and become property of the Florida Keys Aqueduct Authority.

Bids should be sent via FedEx, UPS or Courier and addressed to:

FKAA Purchasing Department 7000 Front St. (Stock Island) Key West, FL 33040

***Be advised that the United States Postal Service does not deliver to this address. *** Bid Form

Please note that the quantity listed is not guaranteed and that the FKAA reserves the right to increase or decrease · the order as needed. Bid will be awarded based on the lowest "Total Price."

Pipe and Quantity Unit Cost

2.22/FOOT WITHEPDM Price per Foot:

39,960.000 INCLUDES FREIGHT Total Price (18,000 ft.):

The Governing Board of Directors of the Florida Keys Aqueduct Authority reserves the right to reject any and all bids, in whole or in part, to waive any irregularities or informalities in any bid, and to award to any party considered to be in the best interest of the Authority. • SUPPLY. WATERWORKS

Bid Proposal for 4" C900 DR18 BLUE

FLORIDA KEYS AQUEDUCT AUTH HD Supply Waterworks Bid Date: 06/01/2017 08:00 a.m. 18701 SW 108th Ave HD Supply Bid#: 336307 M iami, FL 33157 Phone: 786-573-3401 Fax: 786-573-3440

Seq# Qty Description Units Price Ext Price

30 18000 4 C900 DR18 PVC PIPE BLUE (G) WITH "EPDM" GASKETS MARKINGS PC235 FT 2.22 39,960.00 40 INCLUDES FREIGHT Sub Total 39,960.00 Tax 0.00 Total 39,960.00

06/06/2017 - 2:02 PM Actual taxes mav vary Page 1 of 2 TERMS ANQ CQtRDQNS OF SALE("Tenm"J 1. Al references In this document to "Sele(' shal indude HO Supply, Inc. and / or any parent, aubaidialy or afliate of HO Supply, Inc. Qnduding any division or the foregoing) whether or not perfoming any or•• of the scope hereunder or 1pecifocaly identified herein. AM references to "Buye(' shal indude all parent(s), subsidiaries and affiliate, of the entky placing the order. Buyer and Seller may be refemtd to Individually a, a "Party" and colectively as "Partlea".

2. Al sales to Buyer are subject to these Terms, which shaU prevai over any inconsistent terma of Buye(s purchase order or other document,. Additional or different tarrns and conditions in any way •Hering or modfying these Torma are exprellly objected to and 1hal not be binding upon Sehr unleu specificaly accepted in writing by Sole(s authorized repruentlllive. No modifocetion or atteretion of th.. e Tenm 1hal result by Sellel's shipment of goods folowing receipt of Buye(s purchase order, or other documents containing addltional. conflicting or inconllstent terma. There are no terms, conditions, understandings, or agreement, other than those stated herein. and al prior propo$11S and negotiations are merged herein. These Tenm are binding on the PartiH, their 1ucces10rs, and pelTTlitted anlgn1.

3. Prices on Seier -bsite, cataloga or In Seier quotH are subject to change without notice, and al such prices expire a nd become invalid If not eccepted within 1 o calendar days from the date of issue, unless otherwise noted by SeUer In writing. Price extensions if made are for Buye(s convenience only, and they, as wol as any mathematical stenographic or clerical errors. are not binding on Seier. Price• shown do not Include any ..1e1 , excise, or other governmental tax o r charge payable by Seier to any federal, lltate or local authority. Any taxes now or hereafter ~sed upon aales or shipment, wl be added to the purchase price, and Buyer shal reimburse Seier for any such tax or provide SeMor with an acceptable tax exemption ceMicate. AU prices and other terms provided to Buyer 1hal be kept confidential except to the extent a Party Is requintd by law to disclose the same.

4. Seier ahah not be l able for delay or derauH in delivery resulting from any cause beyond Sele(1 reasonable control, Including, but not '"1ted to, governmental action, strikes or other labor troubles, fire, damage or deslluction of goods, wars (declared or undeclared), acts of terrorism, manufacturers' 1hortage1, avaHabillty or tlme[iness of tran1porta1ion, materials, fuela, or supples, and acts of God (each a "Force Majeure Event"). Upon the occurrence of a Force Majeure Event: (a) the time for Selefs performance shaa be extended reaaonably anel the Partiaa shal adjust al affected dates accordingly; (b) the purchase price shd be adjusted for any increased colts to Solar ruu~ing from such Force Majeura Evant; and (c) Buyer shal not be entttled to any other remedy.

5. Seier is a reseler or goods only, and Hauch does not pro'iide any warrenty for the goods tt supples hereunder. Notwithstanding this A..ta limltaUon, Seier shel pan through to Buyer any transferable manufacture(s standard wamu,tlea with respect to gooda purchHed hereunder. BUYER Ar,.() PERSONS CLAIMING THROUGH BUYER SHALL SEEK RECOURSE EXCLUSIVELY FROM MANUFACTURERS IN COIINECTION WITH ANY DEFECTS IN OR FAILURES OF GOODS, AIIO THIS SHALL BE THE EXCLUSIVE RECO~SE OF BUYER AND PERSONS Ct.AIMING Tl-ROUGH BUYER FOR DEFECTIVE GOODS, 11\tiETHER THE CLAIM OF BUYER OR Tl£ PERSON CLAIMING THROUGH BUYER SHALL sour,,o IN COITTRACT, TORT, STRICT LIABILITY, PURSUANT TO STATUTE, OR FOR NEGLIGENCE. BUYER SHALL PASS THESE TERMS TO SUBSEQUENT BUYERS AND USERS OF GOODS. SELLER EXCLUDES ANO DISCLAIMS AL L OTHER EXPRESS ANO IMPLIED Wt.RRANTIES. INCLUDING, BUT NOT LIMITED TO, ALL IMPLIED \V\RRANTIES OF MERCHANTABILITY ANO FITNESS FOR A PAR'llCULAR PURPOSE. SELLER ASSUMES NO RESPONSIBILITY w-tATSOEVER FOR SELLER'S INTERPRETATION OF PLANS OR SPECIFICATIONS PROVIDED BY BUYER, AND BUYER'S ACCl:PTANCE AND USE OF GOODS SUPPLIED HEREUNDER SHALL BE PREMISED ON FINAL APPROVAL BY BUYER OR BY BUYER'S RELIANCE ON ARCHl'TECTS, ENGll'EERS, OR OTHER THRO PARTIES RATHER THAN ON SEU.ER'S INTERPRETATION. TO THE EXTENT NOT PROHIBl'TEO BY APPLICABLE LAW. IN NO EVENT, Wl-iETIER IN CONTRACT, Wt.RRANTY, INDEMNITY, TORT (lNCLUOING, BlJT NOT LIMITED TO, NEGLIGENCE), STRICT LIABILITY OR OTHER'MSE, ARISING DIRECTLY OR ll'OIRECTlY OUT OF THE PERFORMANCE OR BREACH OF THESE TERMS, SHAU SELLER BE LIABLE FOR (a) ANY INCIDENTAL. INDIRECT, PUNITIVE, SPECIAL, CONSEQUENTIAL OR SIMILAR DAMAGES SUCH AS LOSS OF USE, LOST PROATS, ATTOR/IEYS' FEES OR DELAY DAMAGES, EVEN IF SUCH DAMAGES 'NERE FORESEEABLE OR CAUSED BY SELLER'S BREACH OF THIS AGREEMENT, (b) ANY a.AIM THAT PROPERLY IS A CLAIM AGAINST THE MANUFAC~R. OR (c) ANY AMOUNT EXCEEDING Tl£ AMOUNT PAID TO SELLER FOR GOODS FURNISHED TO BUYER IJl.+IICH ARE THE SUBJECT OF SUCH CLAIM(S~ ALL CLAIMS MUST BE BROUGHT Wlll-ll N ONE YEAR OF ACCRUAL OF A CAUSE OF ACTION.

6. Buyer shaH Indemnify, defend, and hold Sei er kl otr.cers, directors, e~loyeea and aganll hamwss from any a nd all cost, (Including attomey1' and accountants' fees and expenses), labldies and damages resuttlng from or related to any third party (Including Buye(s e~yees) claim. COfl'4)1alnt and/or judgnwnt arislng from Buye(s use of any goods furnished hereunder. as wel as any negt gent, Intentional. ortortious act or on'111ion of Buyer or any material breach by Buyer or these Torma.

7. \r\hen goods are deivered to Buyer in Sele(• own vehiaes, the F.O.B. point shd be Buye(s designated delivery de. In •N other cases the F.O.B. point ahd be Sele(s store or warehouse and al responslbilty and costs of shipping and delvery beyond the applicable F.O.B. point shd be borne by Buyer. rtte and risk of loss shal pan to Buyer at the applicable F.O.B. point, which for goods not delvered in Selle(• own vehicles shal be when Seiter delvers the goods to the common carrier. Al claims for shortage of goods or for loss or damage to goods as to which Seller has the rilk of loss shal be waived unless Buyer, within 10 calendar day, after receipt of the short or damaged shipment, gives Seier written notice fully describing the alaged shortage or damage. Partial shipments are peffl'itted at Sele(1 discretion.

8. Any change in product specifications, quanOOes, destinations. shipping schedules, or any other aspect of Iha scope of goods must be agreed to in writing by Seier. and nwy resutt in a price and delivery adjustment by SeHer. No cradH for goods returned by Buyer shal be given without Sele(s written authoriu.tion. Al returns are subject to a restocking charge.

9. Unless otherwise agreed in writing, payment terms arw net 30 days from delivery. payable In United States of America ("U.S.") do.. rs. Notwithstanding the foregoing, al orders are subject to Selte(1 continuing approval of Buye(s credit. It Buye(s credit is not approved or becomes unsatisfactory to Sehr then Seier, In Hs sole discretion, may suspend or cancel performance, or require different payment tenns, including but not lrnled to cash on delivery or in advance of shipment. In addillon, Seier may in Hs discretion require an advance deposit of up to 100% of Sele(s selling price for any speclaly manufactured goods ordered by Buyer hereunder. Paynwnts due hereunder shan be made in the form of cash. cheell, or money order, or other tender approved In writing by Seller. Seier may, In its sole discretion, apply Buye(a payment against any open chargH. Past due accounts bear interest at the lesser of 1.5% per month or the maximum rate pelTTlitted by applcable law, continuing after Seier obtains Judgment against Buyer. Seier may exercise setoff or recoupment to apply to or satisfy Buye(s outstanding debt. Buyer shall have no right of setoff hereunder. the some being expreaaly waived hereby.

1 o . Buyer 1h11 not export or re.export, directly or indirectly, al or any part of the goods or related technology obtained from Seller under these Terms except In accordance with applicable export laws and regulations of the U.S. Further, a Buyer that Is a non-u.s . company or citizen lhal sin'ilarly imit any export or re-flxport activity to that which would be deemed complant with U.S. export laws and regulations if performed by a U.S. company or clizen.

11 . Buyer 1h1N pay SeHer al costs and expenses of collection. suit, or other legal action brought a, a resutt of the cormierc:ial relationship between them. lnduding, but not limted to, al actual attorneys' and paralegals' fees, and collection cost,, incumtd pre-sutt, through trial, on appeal. and in a ny adrrinlstretive or bankruptcy proceedings. Any cause of action that SeNer has against Buyer may be assigned without Buyefs consent to HO Supply, Inc. or to any affiiate, parent or subsidiary of HO Supply, Inc.

12. This Agreement, Buye(s account. and the buslne11 relationship between Buyer and SeUer sh.Ube governed by and construeel In accordance with the laws of Georgia without regard to conflicts or laws rules, and specifocely excluding the UN Convention on Contracts for the International Sale of Goods. The Partlea agree that any legal action arising under or related to this Agreement 1h11 be brought in Cobb County, Georgia, and any right to object to such venue o r to assert the inconvenience of such forum Is hereby waived.

13. If Buyer fais to comply with these Terms. SeUer may teminate or restrict any order Immediately upon notice to Buyer. Buyer certifies that It Is solvent and that It wl advise Seier irrrnedietely If it becomes in10lvent. Buyer agrees to send Seller written notice of any changes in the form of ownership of Buyefs business within 5 days of such changes. Buyer and Seier are Iha only intended beneflCiaries of thit doeunwnt, and there are no thkd party beneficiaries.

14. The invalidlty or unenforceablity of al or part or these Terms wil not affect the vaidtty or enforceabilty of the othertorms. The parties agree to replace any void or unenforceable term with a new lerm that achieves substantiaUy the same practical and econorlic effect and Is valid and enforceable.

15. The following provisions 1hal survive tem'ination, cancelation and COrl1)1eted performance of this Agreement as long as neces.. ry to alow the aggrieved party to fuly enforce such clauses: 5, 6 , 9, 10 , 11 and 12.

t-0 Supply Terms and Conditions of Sale - Rev A0807 FLORIDA KEYS AQUEDUCT AUTHORITY INVITATION TO BID: COMMODITIES/SERVICES (BIDDERS ACKNOWLEDGMENT)

MAIL BIDS TO: FLORIDA KEYS AQUEDUCT AUfHORITY 7000 Frcint St. (Stock Island) KEY WEST, t'LORIDA 33040 (No USPS dtliveries, FtdEx 1nd UPS only.)

l>a11c I of 4 (30S) 296-24S4 PROJECT# FI LE # BID #-FKAA-IFB-0008-17 BIDS WILL BE OPENED: June STI, 2017 at 4:00pm BID TITLE: Purchase of 4" C-900 Pipe. 7000 Front St Key West. FL 33040 NO USPS Delivery, Fed Ex or UPS ONL V and may not be withdra\\11 within days after such date and time.

Delivery Date Will Be 30 Davs Afier Rcceiot of Purchase Order.

NAME OF VENDOR: Fortiline, Inc. MAILING DA TE: 6/6/17 MAILING ADDRESS: 7025 Northwinds Dr., NW CERTIFlED OR CASHIER'S CHECK IS ATT ACHE D. CITY-STA TE-ZIP: Concord, NC 28027 WHEN REQUIRED. IN THE AMOUNT OF$

TELEPHONE NUMBER: 704-788-9800 FAX NUMBER. 704-788-9896 I - I certify that this bid is made without prior understanding. agreement, or .iJJ~ ..... · Am.~ ,t connection \\ith any corporation, firm, or person submitting a bid for the same Al!'thorized Signature (Manual) materials, supplies, or equipment and is in all respects fair and without collusion or fraud . I agree to abide by all conditions of this bid and certify that I am authorized to sign this bid for the bidder and that the bidder is in compliance Sheri Smith, Regional Bid Coordinator with all requirements of the Invitation to Bid, including but not limited to, Authorized Signature (Typed) und Tille ·ertitication requirements.

GENERAL CONDITIONS BIDDER: To iasutt acceotaace of the bid follow thae iastractiona

SEALED BLDS: This form must be ex.ecuted and returned with one copy of all 3. BID OPENING: Shall be public, on the date and nt the time specified on bid sheets, as well as nil addenda acknowledged. The face of the envelope shall the bid form. All bids received after that time shall become the property contain, in addition to the above address, the date and time of the bid opening, of the Authority and remain unopened. It is the bidder's respomibility to and the bid number. Do not include more than one bid per envelope. All bids are assure his bid is delivered al the proper time and place of the bid subject to the conditions specified here in. Those that do not comply with these opening. Olfers by facsimile, telegram or telephone are not acceptable. conditions arc subject to rejection. 4. PRJCES QUOTED: Deduct trade discounts and quote firm net prices. l. EXECUTION OF BID: All bids must contuin a man ual signature of an Unless otherwise spcci ficd. all prices quoted in this bid will remain firm authorized representative in the space provided above to be considered for a period of 60 days. Give both unit price and extended total In case formal. 1nc company nnme must also appear on C3Ch page of the bid as ofa mistake in extensions, the unit price will take precedence. All prices required. F.O.B destination (unless otherwise specified in special conditions). Prices and extensions should be typed or printed in ink. 2. NO BID: If not submitting a bid, respond by returning one copy of this form. marking it "NO BID', and explain below the reason. Repealed fa ilure a) TAXES: The FKAA does not pay federal excise and state sales taxes. to quote without sufficient justification shall be cause for removal of a Do not include these items on invoices. The applicable tax exemption supplier's name from the bid mailing hst. NOTE: A bidder; to qualify as a number is sh0\\1\ on purchase orders. respondent, must submit a "NO BID", and same must be received no later b) DISCOUNTS: Cash discounts for prompt payment shall not be than the stated bid opening date and hour: considered m detcnnming the lowest net cost for proposal evaluation purposes. c) MISTAKES: Bidders are expected to examine the spec1fications, REASON FOR ' NO BID": delivery schedules, bid prices and extensions, and all instructions penaining to supplies and services. Failure to do so will be at the bidder's risk. In case of mistake in the extension the unit price will govern. d) CONDITION AND PACKAGING: It is understood and agreed that any item offered or shipped as a result of this bid shall be new (current production model at the time of this bid), unless otherwise ,11eciticd. All containers shall be sun.able for storage or shipment, and all prices shall include standard commercial packaging.

Foniline. Inc. GENERAL CONDITIONS CONTINUED

4. (Continued) Discrepancies bct\,,~en the indicated sum of any column of figures and the e) SAFETY STANDARDS: Unless otherwise stipulated in the bid. all correct sum thereof will be resolved m fuvor of the correct sum. Within 60 manufactured items and tabricaied assemblies shall comply with calendar days after the opening of Proposals, unless otherwise stated in the applicable requirements of Occupational Safety and Health Act and any Supplementuy Cond11ions of the Documents, the FKAA wtll issue notice standards thereunder. lhat it intends to acccpl one of the proposals or will award the contract to f) BIDDER'S CONDmONS: Any conditions to be made as part of the the loWCSI Base Bid. Acceptance of lhc Proposal by the FKAA will be by bid. should be submitted by letter with notes thereof on bid sheet for "rincn Notice of Award, mailed or delivered to the office designated in the consideration. Proposal. ln the event of the fuilure of the lowest responsible and g) PAYMENT: '(be vendor shall be paid upon submission of properly responsive bidder to meet the requirements of the Bid. the FKAA may certified invoices at the prices stipulated on the bid, atler delivery and award the Contract to the next lowest responsible and responsive Bidder. acceplllnee of the goods and/or services. less deductions if any, as Such award, if made by the FKAA will be made within 60 days after the provided. opening of Proposals. 5. EQUIVALENTS: Unless otherwise specified, any manufacturer's name, 11. ADVERTISING: In submitting a proposal, bidder agrees not to use the trade names, brand names, information and/or catalog numbers listed in a results there from as a pan of any commercial advertising. specification are for information and not to limit competition. Bid any 12. GOVERNMENTAL RESTRICTIONS: In the event any governmental hrand which meets or exceeds the quality of specifications listed for any restrictions may be imposed which would necessitate alteration of the ncm. If the bid is based on equivalent products, indicate on the bid form the matenal. quality, worlcmanship or performance of items offered on this bid manufaeturet's name and number and mdicate any deviation from the prior to their delivery, it shall be the responsibility of the vendor to notify specifications llS listed. Include fully descriptive literature on item(s). the FKAA at once, indicating in his letter the specific regulation which Laclcing any wrillen indication of intent to quote an alternate brand or model required an alteration. The FKAA reserves the right to accept any such number, the bid will be considered as a quotation in complete compliance alteration, including any price adjustments, or to cancel the contrnet at no with the spec1fications listed in the form. The FKAA reserves the right to further expense to the FKAA. determine acceptance of item(s) as an approved equivalent. 13. ASSlGNMENT: Any purchase order issued pursuant to this bid invitation 6. NONCONFORMANCE TO CONTRACT CONDITIONS: Items may be and the monies which may become due are not assignable except with tested for compliance with specifications under the direction of the Florida prior written approval of the FKAA. Depanment of Agriculture and Consumer Services. Items delivered not 14. CONFLICT OF INTEREST. The award hereunder is subject to Chapter conforming to specifications may be rejected and returned at vendor' s 112, Florida Statutes, wherein it states, in part: " ...1111 bidders must discl05e expense. These items and items not delivered as per delivery date in bid \\ith their bid the name of any officer, director. or agent who is also an and/or purchase order may be purchased on the open market. Any increase employee of the FKAA All bidders must disclose the na me of any in cost may be charged against the bidder. Any violation of these employee who owns directly or indirectly an interest of 5% or more in the stipulations may also result in the vendor's name being removed from the bidder's firm or any of its branches ..." FKAA vendor list. 15. LEGAL REQUIREMENTS: Applicable provision of all Federal, State, 7. SAMPLES: Samples of items, when required, must be furnished free of county and local laws, and of 1111 ordinances, rules, and regulations shall expense and, if not destroyed, \,111, upon request, be returned at the bidder's govern any and all claims and disputes "hich arise between pcrson(s) expense. RL-qucst for the retum of samples must be submitted by letter w,th submitting a bid response hereto an the FKAA, by and lhrough its officers, notes thcrtof on bid sheet. Each individual sample must be labeled "1th employees and authorized representatives, or nny other person, natural or bidder's llllmC. bid number, and item number: Failure of bidder to either otherwise; and lack of knowledge by any bidder shall not constitute a deliver required samples or to clearly identify samples 115 indicated may be cognizuble defense against the legal effect thereof. reason for rejection of the bid. PATENTS & ROYALTIES: The bidder without exception, shall 8. DELIVERY: Unless actual date of delivery is specified (or if specified indemnify and save harmless, the FKAA and its employees, from liability delivery cannot be met), show number of days required to make delivery of any narurc or kind, including cost and expenses for or on account of after receipt of purchase order in space provided. Delivery time may any copyrighted, patented, or unpatented invention, process, or article become a basis for making an award (see Special Conditions). Delivery manufllCtwed or used in the pcrfonnance of the contract, including its we shall be within the nonnal working hours of the FKAA, Monday through by the FKAA the bidder uses any design, device, or materials covered by Friday, excluding holidays. Upon delivery the FKAA has five working days letters, patent or copyright it is mutually agreed and understood without to inspect IIIld approve the goods and services, unless bid specifications or exception that the bid prices shall include all royalties or cost arising purchase order spe<:1fy otherwise. Inspection and acccplllncc will be al from the use of such design. device, or materials in any way mvolved in destination mless otherwise provided. Tille to/or risk of loss or damage to the work. all items shall be the responsibility of the :successful bidder until acceptance 17. SERVICE AN D WARRANTY: Unless otherwise specified. the bidder by the FKAA unless loss or dam88e results From negligence by the FKAA. shall define any waJ'Tllnty service and replacements that will be provided. 9 INTERPRETATIONS/DISPUTES: Any questions concerning conditions 18. ELIGl8L6 ENTITTES: Paragraph (2) (a), Section 287.133, Florida and specilications should be submitted to the buyer no later than five (5) Statutes provides that "A person or affiliate who has been placed on the da~ prior to the bid opening. Any person who is adversely affected by a convicted vendor list foll owing a conviction for u public entity crime may decision or intended decision shall be subject to the FKAA's procedures for not submit a bid on a contract lo provide any goods or services to a public Did Protests (48-101.11 ). In case of 11ny doubt or difference of opinion as to entity. may not submit a bid on a contract with a pub Iic entity for the the items to be furnished hereunder, lhe decision of the FKAA shall be final construction or repair of a public building or public work, may not submit and binding on both parties. bids on leases of real property to publ ic entity. may not be awarded or 10 AW,\RDS: The FKAA reserves the right to accept any Bid or combination perform work as a contractor, supplier, subcontractor, or consultant under of Bid alternates which. in the FKAA's judgement will best serve the a conlract with any public entity. and may not transact business with any FKAA 's interest, reject any and all Bids. to waive any and 1111 informalities public entity in excess of the threshold amount provided in Section and/or irregularities, and 10 negotiate contract terms \\~th the Successful 287.017. for CATEGORY TWO for a period of(36) months from the date U1dder, and the right to disregard all nonconforming. non-responsive. of being placed on the convicted vendor hst." imhalanccd or conditional Bids. The FKAA reserves the right to reject any 19. LIABILITY: The supplier shall hold and save the FKAA, its officers, one or all Bids, or any part of any Bid, to waive any informali ty in any Bid, agents. and employees harmle$S against claims by third p1111ies resulting , , ' !-> a\\ard the purchase in the best interest of the FKAA. Discrepancies from the vendor's breach of contract or the vendor's negligence. in the multiplication of units of work and/or unit prices "ill be resolved m favor of the unit orice. l'iOTE: Ai'JY AND ALI . SPECIAL CONDITIONS A~D SPECIFICATIONS AIT ACHED HERETO WI IICH VARY FROM THESE GENERAL CONDITIONS SHALL HAVE PRECEDENCE.

2

Fortilinc lnc. Bid Form

Please note that the quantity listed is not guaranteed and that the FKAA reserves the right to increase or decrease the order as needed. Bid will be awarded based on the lowest "Total Price."

Pipe and Quantity Unit Cost

Price per Foot: $ 2.45

Total Price (18,000 ft.): $ 44,100.00

The Governing Board of Directors of the Florida Keys Aqueduct Authority reserves the right to reject any and all bids, in whole or in part, to waive any irregularities or informalities in any bid, and to award to any party considered to be in the best interest of the Authority.

Fonihnc. Inc. FLORIDA KEYS AQUEDUCT AUTHORITY

IFB-0008-17

PuRCHASE OF 4" C-900 PIPE

The Florida Keys Aqueduct Authority seeks to purchase 18,000 ft. of 4" C-900 Pipe as described below.

Pipe Description

PIPE, C-900, 4", DR-18 CLASS 150, BELL END with EPDM GASKET, COLOR: BLUE, (20 FT LENGTHS ONLY).

All bids must be firm for a period of 2 months from the bid date.

All bids must be FOB destination to the address below:

FKAA Lower Key Warehouse 7000 Front St. (Stock Island) Key West, FL 33040

A firm delivery date is required.

Questions and Clarifications

Questions regarding this bid should be directed in writing via email to David Jackson, Purchasing Manager at d jackson(ii).fkaa.com.

· Bid Requirements

Bids must be signed and clearly marked on the outside, ·'FKAA-LFB-0008-17 Purchase of 4" C-900 Pipe." Bids must be received no later than 4:00pm Thursday, June 8th 2017. Any bids received after this time will remain unopened and become property of the Florida Keys Aqueduct Authority.

Bids should be sent via FedEx, UPS or Courier and addressed to:

FKAA Purchasing Department 7000 Front St. (Stock Island) Key West, FL 33040

***Be advised that the United States Postal Service does not deliver to this address. ***

For1iline, Inc. FLORIDA KEYS AQUEDUCT AUTHORITY INVITATION TO BID: COMMODITIES/SERVICES (BIDDERS ACKNOWLEDGMENT)

MAIL BIDS TO: F LORIDA KEYS AQUEDUCT AUTHORIT Y 7000 Front St. (Stock Island) KEY \VF.ST, FLORIDA 33040 (No USPS deliveries, FedEx and UPS o nly.)

ba~ I or 4 (305) 296-2454 PROJECT# FlLE// BID #-FKAA-fFB-0008- 17 B IDS WILL BE OPENED: June 8", 2017 at 4 :00pm BID T ITLE: Purch11Se o f 4" C-900 Pipe. 7000 Front St. Key West, FL 33040 NO l'SPS Delivery, Fed Ex or UPS ONLY and may not be withdrawn within days after such date ond time.

Dcliverv Dnte Will nJuly 31st 2017 Days After Rcceiot of Purchase Order.

NAME OF VENDOR: Ferimon v,..rate rworks MAIL ING DATE: 5/3 1 /?()17

MAILING ADDRESS: 10810 SW 184 ST

c rrY-STATE-ZIP: CF.RTlflED OR CASHIER'S CHECK IS ATTACHED. Miami Fl 33 157 WHEN REOUIRED. IN THE AMOUNT OF S TELEPHONE NUMBER: 786-573-714/) FA,'fNb"1BER: YIS-9 iiA-0361 I certify that th is bid is made without prior understanding, agreement, o r y D11. J J_ 1 lL !connection with any corporation, finn, or person submitting a bid for the same Av B Signat~anusl - materials, supplies, or equipment and is in all respects fair and without collusion ~r fraud. I agree to abide by all conditions of this bid and certify that I am iau1hori:zed to sign this bid for the bidder and that the bidder is in compliance Iu an Castillo Sales with all requirements of the Invitation to Bid, including but not limited to, Authorized Signature (Typed) and Title lccrtilicution requirements.

GENERAL CONDITIONS BIDDE R: To insure acceptance of the bid follow these instructions

SEALED BIDS: This form must be c.xccutcd and n:tumcd w ith one copy of all 3. BID OPENING: Shall be public, o n the date and at the time specified on bid sheets, as well as all addenda acknowledged.. The face or the envelope shall the bid fonn. All bids received afler that time shull become the propcny contain, in addition Lo the above address, the date and time of the bid opening, o f the Authority and remain unopened. It ,s the bidder's responsibility to aod the bid number. Do not include more than one bid per envelope. All bids arc .1.Ssurc his bid is delivered at the proper time and place o f the bid subject to the condi1ions specified herein. Those that do not comply with these opening. Offers by fucsimile, telegram or telephone are not acceptable. conditions 3re subject to rtjcction. 4. PRICES QUOTED: Deduct tr•dc discounts and quote firm net prices. I. EXECUTION O F BID : J\11 bids must contain a munual signature of an Unless otherwise specified, all prices quoted in this bid will remain !inn autho rized representative in the space provided above to be considcrod for a period of 60 days. Give both uni, price and extended 101al. In case fonnat. The company name must also appear on each page of the bid as of a mistake in cxteosioni;, the unit price will take precedence. All prices required. F.O.B. dcstina1ion (unless otherwise specified in special conditions). Price.~ and extensions should be typed or primed in ink. 2. NO lilD: If not submitting a bid, rcspo~d by returning one copy of this rom1, marking it "NO BID", and explain below the rroson. Repeated failure a) TAXES: The FKAA does not po.y rcdernl excise and state sales taxes. 10 quote without sufficient justification shall be cause for removal of a Do no1 include these items on im·oices. The applicable tax cxemp1ion supplier's name from the bid mailing list. NOTE: A bidder; to qualify as a number is shown on purchase orders. respondcnl, must submit a "NO BID", and same must be received no later b) DISCO UNTS: Cash discouru for prompt payment shall not be than the stated bid opening dutc and ho ur: considered in determining 1hc lowes1 nc1 cost for proposal evaluation purposes. c) MISTAKES: Bidders are c.xpccic:d to examine the specifications, REASON FOR "NO BID": delivery schedules, bid prices and extensions, and all instructions pertaining to supplies and services. Failure to do so will be at 1he bidder's risk. In case of mistake in the extension the unit price will govern. d) CONDITION AND PACK.AG ING: It is understood and agreed that any item offered or shipped as a result o f this bid shall be new (cum:nt produclion model at 1he time of this bid), unless otherwise specified. All con1ainers shall be suitable for storage or shipmen!, and all prices shall include standard commercial pockagrng. GENERAL CONDlTlONS CONTl~UED

4. (Continued) Discrepancies between the iodicutcd sum of any cohnnn of figures and the c) SAFETY STANDARDS: Unless otherwise stipulated in the bid, 311 correct sum thc:rcof will be resolved in favor oflhe correct sum. Within 60 manufactured items and fabricated assemblies shall comply with calendar days after the opening of Proposals, unless otherwise stated in the applic:sble requirements of Occupational Safely ll.lld Hcaltlt Act and any Supplementary Conditions of the Documents, the fKAA will issue notice standards thereunder. that it intends Lo accept ooc of the propos:ils or will award the contract to 0 BIDDER'S CONDITIO~S: Any coooitions to be made as part of the the lowest 8:ISe Bid. Acceptance of the Proposal by the FKAA will be by bid, should be submilled by letter with notes thereof on btd sheet for written Notice of Award, mailed or delivered to the office dcsiannted in the consideration. Proposal. In the event of the failure of the lowest responsible end g) PAYM EITT: The vendor shall be paid upon submission of properly responsive bidder to meet the requirements of the Bid, the FKAA m3y certified invoices al the prices stipulated oo the bid, aClcr delivery and award the Contract to the nc,t lowest responsible 311d responsive Bidder. acceptance of the goods and/or scn,;ccs., [i0$S deductions If any, us Such award, if made by the FKAA will be made wi thin 60 days oiler the provided. opening of Proposals. 5. EQUIVALENTS: Unless othenvise specified, any ml!numcturet's name, 11. ADVERTISING: In submiuing o proposal, bidder agrees not 10 use the trade names, hrand no.mes, infonnation and/or catalog numbers listed in a results there from as a pan of any commercial ach·ertising. specification are for infonnation and nor to limit compe1ition. Bid any 12. GOVERNME!'ITAL RESTRICTIONS: In the: event any governmental brand which meets or exceeds the quality of specifications listed for ony restrictions may be imposal which would necessitate alteration of the item. If the bid is based on equivalent products, indicate on the bid form the material, quality, workmanship or pcrfonn4nce of items offcn:d on this bid manufacturer's name and number and indicate any deviation from the prior 10 their delivery, it shall be the responsibility of the vendor to notify specifications as listed. Include ful ly descriptive literature on itcm(s). the FKAA ar once, indicating in his letter the specific regulation which Lacking ony wri tlen indication of intent to quote an alternaie brand or model required an alteration. The FKAA reserves the right 10 accept any such number, the bid will be cous1dered as a quot:ition in complete complitince alteration, including any pnce adjustments, or to cancel the contr.1ct at no w11h the specifications listed in the fonn. The FKAA reserves the right 10 further expense to the FKAA. detcnnine acceptance of itcm(s) as on approved equiV!llent. 13. ASSIGNMENT: Any purchase order issued pursuant to this bid Invitation 6. NONCONFORMANCE TO CONTRACT CONDITIONS: Items may be and the monies which may become due arc not a.ssig11able except with tested for compliance with specifications under the direction of the Florida prior wriuen approval of the F.KAA. Department of Agriculture and Consumer Services. Items delivered not 14. CONFLICT OF INTER.EST: The award hereundlT is subject to Chapter confom11ng to specifications may be rtjec1ed and returned at vendor's 112, Florida Statutes, wherein il Sllltes, in port·" .all bid

NOTE: A~Y AND ALL SPECIAL CONDITIONS AND SPECIFICATIONS A1T ACHED HERETO WHICH VARY FROM THESE GENERAL CONDIT!ONS SIIALL HA VE PRECEDENCE.

2 FLORIDA KEYS AQUEDUCT AUTHORITY

IFB-0008-17

PURCHASE OF 4" C-900 PIPE

The Florida Keys Aqueduct Authority seeks to purchase 18,000 ft. of 4" C-900 Pipe as described below.

Pipe Description

PIPE, C-900, 4", DR-18 CLASS 150, BELL END with EPDM GASKET, COLOR: BLUE, (20 FT LENGTHS ONLY).

All bids must be firm for a period of 2 months from the bid date.

All bids must be FOB destination to the address below:

FKAA Lower Key Warehouse 7000 Front St. (Stock Island) Key West, FL 33040

A finn delivery date is required.

Questions and Clarifications

Questions regarding this bid should be directed in writing via email to David Jackson, Purchasing Manager at [email protected].

Bid Requirements

Bids must be signed and clearly marked on the outside, ·'FKAA-IFB-0008-17 Purchase of 4" C-900 Pipe." Bids must be received no later than 4:00pm Thursday, June 8111 2017. Any bids received after this time will remain unopened and become property of the Florida Keys Aqueduct Authority.

Bids should be sent via FedEx, UPS or Courier and addressed to:

FKAA Purchasing Department 7000 Front St. (Stock Island) Key West, FL 33040

***Be advised that the United States Postal Service does not deliver to this address. *** Bid Form

Please note that the quantity listed is not guaranteed and that the FKAA reserves the right to increase or decrease the order as needed. Bid will be awarded based on the lowest "Total Price."

Pipe and Quantity Unit Cost

Price per Foot: $ 2.35 FT

Total Price (18,000 ft.): $42,300.00

The Governing Board of Directors of the Florida Keys Aqueduct Authority reserves the right to reject any and all bids, in whole or in part, to waive any irregularities or informalities in any bid, and to award to any party considered to be in the best interest of the Authority. ~FERGUSON. FEI-MIAMI WATERWORKS #1216 Deliver To: 10810 S.W. 184TH ST. s=rom: Juan Castillo H Watenvorks MIAMI, FL 33157-6737 ~mments:

Phone: 786-573-7140 Fax: 305-969-0361

13:23:42 MAY 31 2017 Page 1 of 1 FEI-POMPANO BEACH, FL WW #125 Price Quotation Phone: 786-573-7140 Fax: 305-969-0361

Bid No: 8333877 Cust Phone: 305-296-2454 Bid Date: 05/31 /17 Terms: NET 10TH PAOX Quoted By: JC

Customer: FLORIDA KEYS AQUEDUCT AUTH Ship To: FLORIDA KEYS AQUEDUCT AUTH 1100 KENNEDY DR 1100 KENNEDY DR KEY WEST, FL 33040 KEY WEST, FL 33040

Cust PO#: FKAA Job Name: IFB-0008-17

Item Description Quantity Net Price UM Total DR18BPEP 4 C900 DR18 PVC EPDM GJ BLUE PIPE 18000 2.350 FT 42300.00

IF ORDER ASAP CAN HAVE BY END OF JULY I!!!!!!

Net Total: $42300.00 Tax: $0.00 Freight: $0.00 Total: $42300.00

Quoted prices are based upon receipt of the total quantity for immediate shipment (48 hours). SHIPMENTS BEYOND 48 HOURS SHALL BE AT THE PRICE IN EFFECT AT TIME OF SHIPMENT UNLESS NOTED OTHERWISE. QUOTES FOR PRODUCTS SHIPPED FOR RESALE ARE NOT FIRM UNLESS NOTED OTHERWISE.

CONTACT YOUR SALES REPRESENTATIVE IMMEDIATELY FOR ASSISTANCE WITH DBE/MBE/WBE/SMALL BUSINESS REQUIREMENTS.

Seller not responsible for delays, lack of product or increase of pricing due to causes beyond our control, and/or based upon Local, State and Federal laws governing type of products that can be sold or put into commerce. This Quote is offered contingent upon the Buyer's acceptance of Seller's terms and conditions, which are incorporated by reference and found either following this document, or on the web at http://wolseleyna.com/terms_conditionsSale.html. Govt Buyers: All items are open market unless noted otherwise.

LEAD LAW WARNING: It is illegal to install products that are not 'lead free· in accordance with US Federal or other applicable law in potable water systems anticjpated for human consumption. Products with ·NP in the description are NOT lead free and can only be installed in non-potable applications. Buyer is solely responsible for product selection. Jolynn Reynolds

From: David Jackson Sent: Friday, July 14, 2017 9:01 AM To: Bubba Osterhoudt; Jolynn Reynolds Cc: Olympia Newton Subject: FW: REGARDING FKAA-IFB-0008-17 Attachments: FKAA-IFB-0008-17 (900 BLUE.pdf; PIPE C 900 BID.PDF

Good Morning,

Attached is the award letter for the pipe bid as well as confirmation from HD that they will provide the full order at the bid price.

Thank you,

DAVID A. JACKSON Purchasing / Inventory Control Manager Florida Keys Aqueduct Authority Phone: 305-295-2244, F ax: 305-295-2248 Cell: S05-4•SS-O l 6S

From: Heimanson, Lisa S [mailto:Lisa [email protected]] Sent: Sunday, July 09, 2017 11:00 PM To: David Jackson Subject: REGARDING FKAA-IFB-0008-17

David, This is an official email with a copy of the original bid, (adding in the additional 18,000 feet at the same price)

This email serves as a confirmation that we will provide ALL the pipe at the original price of 2.22/FOOT. Thank you for the opportunity, and let me know if you need anything else. Thanks!

Account Manager [email protected] HD Waterworks - Miami 18701 SW 108th Ave Miami, FL 33157 (786) 573-3401 (786) 573-3440- Fax (786) 214-2229 -- Cell

1 Local Service, Nationwide

2 BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY

AGENDA ITEM: DUO- 04- CONSENT: D REGULAR: ~

MEETING DATE: July 26, 2017 DIVISION: UTILITY OPERATIONS

AGENDA TITLE: Consideration to approve the award of 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 - Project# 2331- 17 in the amount not to exceed $62,000. ITEM BACKGROUND: On December 21, 2016 the FKAA Board of Directors accepted the Executive Director's Report, E0-01, Potable Water to No Name Key and the Torch Keys. The FKAA Construction Crew has been assigned to install the water system in these areas. FKAA advertised IFB-00012-17, Purchase Rock and Fill in the newspaper, website, and Demand Star. Three bids were received. The lowest, responsible, responsive, and qualified bidder was Allied Trucking for a cost of $9,380 and $51 ,750 for DOT Crushed Rock and Pea Rock, respectively. Results are summarized below.

Bidder's Name Total Cost - Crushed Rock Total Cost - Pearock #89 Austin Tupler Trucking $11 ,900 $63,900 SDI Quarry, Inc. $11,400 $59,400 Allied Trucking of Florida $9,380 $51 ,750

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: NIA STAFF RECOMMENDATION (MOTION): Staff recommends that the Board of Directors approve the award of IFB-00012-17 for the purchase of rock for water construction activities related to the Middle/Big Torch outreach area in the amount not to exceed $62,000.

SUPPLEMENTAL INFORMATION: See attached. It is estimated that 400 tons of DOT Crushed Rock and 1,800 ton of Pearock #89 will be utilized to complete construction for a total cost of rock not to exceed $62,000. DOCUMENTATION: Included: 0 To-Follow: D Not Required: D Cost to FKAA: $ 62,000 BUDGETED: Yes [KJ No CJ Cost to Others: $ ------Total Cost: $ ___ ..:...62'-''..:...00-'-0'--

DEPARTMENT: _ En_g_in_e_e_ri_ng______DEPARTMENT DIRECTOR APPROVAL: ¢

DIVISION DIRECTOR APPROVAL: ______y~'------Reviewed by: Internal Auditor: _ ___ General Counsel: (]f(J:' Executive Director: ____

BOARD ACTION:

Approved: D Tabled: o Disapproved: D Recommendation Revised: D

Comments: ______

Date: ______Recording Clerk:______FLORIDA KEYS AQUEDUCT AUTHORITY BID OPENING SUMMARY

Bid number: FKAA-IFB-0012-17

Bid description: Purchase of Rock and Fill for Project 2331-17. Middle/Big Torch Water Main Upgrade.

Bid opening date: 13.Jul-17

Time: 4:00 P.M.

Bid Bid Total Cost Total Cost Total Cost Comments Bidder's Name sealed s· ned DOT Crushed Rock #89 / Pea Rock Flowable Fill

Austin Tupler Trucking, Inc. ls;3 q OD- DO µ(()g;d_. v II qot>-Ou I

Charley T opp(no & Sons, Inc. -zoi) I& DOD· Cc) / / l~//00· oo 70 I Du I

SDI Quarry, Inc. v' / 11 LJoo-~ 5Cft./00 f2D. l o 3, d

V 0, Q_Q 5" I 76 0 .oZ> )rlltecf T£aclcc~ trf'{(. c/ , 381.) I j1/o 73,·d..

Department Director or Designee

Purchasing and lnvento,y Control Manager/Oesignee

Buyer/Purchasing Administrator

Internal Auditor

Time bid opening adjourned Sign in Bid Sheet for: IFB-0012-17 Description: Purchase of Rocks and Fill for Project 2331-17 Date: Thursday, July 13, 2017 Time: 4:00pm **Please Print Name and Company Name

Name Companv Name

~.r:-~ ]I-I c..c. SC)µ fi:A.4

o1-. 11?7 pr(,. Nft."1'2> r f K r-1 f)

/4 ~~ 4 - ,~,A,N'Sj ~

~ b r:5&1ec Jt k(. (Jo Frc4A- I FLORIDA KEYS AQUEDUCT AUTHORITY INVITATION TO BID: COMMODITIES/SERVICES (BIDDERS ACKNOWLEDGMENT)

MAIL BIDS TO: FtORIDA KEYS AQUEDUCT AUTHORITY 7000 Front St. (Stock Island) KE\' WEST, FLORIDA 33040 (No USPS dtll\'liric.', FedEx and UPS onlr,}

•aae l of 4

Dclivcrv Dote Will Be Davs A Iler Reccint of Purchase Order.

NAME OF VENDOR: Jll/;(J 1,,,_,,,.~; ... - ,.J.. ~lur.-J. 1r· EMAIL ADDRESS: iQ,.. l11,.ye'1. JO i"ll..\J;t',1 Tk. (,/)n'> • MAlLINu ADDRESS: /()1 'I I Nw~flvt

CITY-STATE-ZIP:/Ji"' ~h CERTIFIED OR CASHIER'S C HECK IS A TTACHED. f~CA'("der1s. fl 330/8 WHEN REOUJRED. IN THE AMOUNT OPS TELEPHONE NUMBER: 401-~"t~ ,q441, EMAIL ADDRESS: '"~~z. ~o.11,·ed tk. w ..,-, . ~ ,;:_., I certify thar this bid is made without prior understanding, agreement, or 7 ~ !connection with auy corpon,tion, firm, or person submitting. • bid for the same Authorized Sigri!iture (Manu materials, supplies. or equipment and is in all respects fair and without collusion or fraud. T agree to abide by all conditions of 1his bid and certify that T am authori7.Cd ro sign 1his bid for the bidder and that the bidder is in compliance ,vi1h all requirements of the lnvitation lo Bid. including bu1 not limited to, Authorized Signature (Typed) and Title certification requirements.

GENERAL CONDITIONS BIDDER: To Insure acceotance of the bid follow these instructloa,

SEA LED BIDS: This form must be executed and returned with one copy of all 3. BID OPENINU: Shall be puhlic, on the date and at the time specified on bid sheets. as well as all addenda acknowledged. The face of the envelope shall the bid form. All hids received afier Iha! time shall become the property contain, in addition to the above address, the date and time o f the hid opcnins. of the Authority and remain unopened. lt is the bidder's responsibility to and Ilic bid number. Do not include more 1han one bid per envelope. All bids are a~sure his bid is delivered at the proper time and place of the bid s ubject to the conditions specified herein. Those that do not comply with 1hcse opening. Offers by focsimile, telegram or telephone ore not acceptable. conditions art subject lo rejection. 4. PRICES QUOTED: Deduct trade discount:, and quote firm net prices. l. EXECUTION OF BID: All bids must contain a manual signature of an Unless otherwise spccilicd, all prices quoted in this bid will remain firm nu1horized rcprcsentnlivc in the spocc provided above to be considered for n period of 60 days. G ive both uni I price and extended total. In case formal. The company name must also appear on each page of the bid ns of a mistake in extensions. the unit price will lake precedence. All prices required. F.O.B. destination (unless olhcrwise s1,eci1icd in special conditions). Prices and extensions should be typed or printed in ink. 2 . NO BID: If not submitting a bid, resrond by returning one copy of this form, marking i1 "NO OID". and cxpl:iin below the reason. Repealed failure aJ TAXES: The FKAA docs not pay federal excise ond stare sales taxes. to quote without sufficient j ustification shall be cause for removal of a Do not include these items on invoices. The applicable tax exemption supplier' s name from the bid mailing list. NOTE: /\ bidder: to qualify M o number is shown on purchase orders. respondent. must submit a "NO BID". and some mu.~t be received no later b) DISCOUNTS: Cash discounts for prompl payment shnll not be thon the stated bid opening dole and hour: considered in determining the lowest nc1 cost for proposal evaluation pnrroscs. cl MISTAKP.S: Bidders ore expected lo examine the spccilicatinns, REASON FOR "NO BID": delivery schedules, bid rrices and extensions. and all instmctions pertaining to supplies and services. Failure 10 do so will be at the bidder's risk. In case of mislnke in 1hc extension the unit price will govern: cl) CONDITION AND l'AC KAUlNG: It is understood and agreed that any item offered or shipped ns o result of this bid shall be new (current production model at the time of this bid). unless otherwise ~J>CCificd. All containers shall he suitnblc for storage or shirmcnt, and all prices shall include standard commercial packaging. GENERAL CONDITIONS CONTINUED

4. (Continued) Discrepancic~ between the indicated sum of any column of figures and the c) SAFETY STANDARDS: Unless otherwise sti puloted in 1he bid, all correct s um thereof will be resolved in favor of the correct sum. Within 60 monufoc1ured i1 em.s ond fabricated nssemblies s hall comply with calendar days after lhc opening of Pmposals. unless othcrwi~c stated in the applicable requirements of Occupational Safety and Health Act and any Supplementary Conditions of the Documents, the FKAA will isstte notice standanJs thereunder. that it intends to accept one of the pror osals or will award the contract to f) BIDDER'S CONDITIONS: Any conditions 10 he made as part o r the the lowest Base Bid. Acceptance of the Proposal by the FKAA will be by bid. should be submitted by letter with notes thereof on bid shcc1 for wriuen Notice of Award. mitilcd or delivered 10 lhc office designated in the considcrnlion. Proposal. In lhe event of the failure of the lowest responsible and gJ PAYMENT: The vendor •hall he r~id t1ron submis•ion of prorerly responsive hiddcr lo meet the requirements of the Did, the FKAA may certifi ed invoices al lhc prices stipulated on the bid, after delivery and award the Contract tn the next lowesl responsihlc and responsive Bidder. acceptance of lhc goods and/or services. less deductions if any. ns Such aw:ml. if made by the FKAA will be made within 60 days after the rmvided. opening of Proposals. 5. EQUIVALENTS: Unles.s olhcrwise srecified. any manufac1urer's name. 11. ADVERTISINU: In suhmilting a pmposnl, bidder agrees not to use the lrade names, brnnd names, informalion and/or calalog numbers listed in a results there fro m as a part of any commercial advertising. specification arc for informalion and no! lo limit compclilion. Bid ony 12. GOVERNMENTAL RESTRICTIONS: In the event any governmental brand which meets or exceeds the quolity of srecificolions listed for ony restrictions may he imposed which would necessitate aheratinn of the item. If the bid is based on eqnivalcnl products. indicate on the bid form the malerial, quality. workmanship or performance of items offered o n this bid manufncturer's name and number ond indicate any deviation from the prior to their delivery, it shall be the responsibility or the vendor to notify specifications as listed. Include fully descriptive literahtrc on itcm(s). the FKAA at once. indicating in his letter the specifi c regulation which Lacking any wrillen indication of intent to quote an alternate brand or model required an alteration. The FKAA reserves the righl to accept any such number, the bid will be considered 11.• a quotation in complete comr liancc alteration. including any price adjustments, or to cancel the contract at no with the specifications listed in the form. The FKAA reserves the right to further expense to the FKAA. determine acceptance of itcm(s) os an approved equivalent. 13. ASSIGNMENT: Any purchase order issued puMiuanl lo this bid in vitation 6. NONCONFORMANCE TO CONTRACT CONDITIONS: Items may be and the monic.~ which may become due ore not assisnable except with tested for compliance wilh ~pccifications under tho direction of the Fluridu r rior written approval of the FKAA. Department of Agriculture and Consumer Services. Items delivered not 14. CONFLICT OF INTEREST: The award hereunder is subject to Chapter conforming to specifications may be ~jcetcd and re turned at vendor's 11 2. Florida Statules. wherein it.stales, in J>art: " ... all bidders must disclose expense. These ilems and items not delivered as per delivery date in bid with their bid the name of any officer. director. or agcnl who is also nn and/or purchase order may be purchased on the open maricet. Any incrcuse employee of the FKAA. All bidders must disclose the name of •ny in cost may be charged against the bidder. Any violalion of these employee who owns directly or indirectly nn interest of 5% or more in the stipulations may also result in the vendor's nnmc being removed from the bidders fi rm or any of its branches. .. " FKAA vendor list. 15. LEGAL REQUIREMENTS: Aprlicablc provision of all Fcdcml. State, 7. SAMPLES: Samples of items, when required, must be furnished m:c of county and local laws. and of ull ordinances, rule.~. and regulations shall expense and, if not destroyed, will. upon request. be returned at the bidder's govem any and all claims and disputes which arise between pcrson(s) expense. Request for the remm of samples must be submitted by Jcucr with submitting a bid response hereto an the FKAA. by and through its officers, notes thereof on hid sheet. Each individual sample musl be labeled with employees and authnri,cd representatives. or any other person. natural or bidder's nume. hid number. and ilem number. Failure of bidder to either otherwise; und lack of knowledge hy any bidder shall not con.,titule a deliver required samples or to clearly identify samples as indicated may be cognizable defense against the legal effect thereof. reason for rejection of the bid. PA TENTS & ROYAL TIES: The bidder without exception. shall 8. DELIVERY: Unless actual date or delivery is specified (or if ~pccificd indemnify and save harmless, the FKAA and its employees. from linbilily delivery cannot he met), show number nf days required to make delivery or any nature or kind, including cost ond expenses for or o n account or after receipt of 11urchase order in space provided. Delivery time may any coryrightcd, patented. or unpatcnted invention, process. or article become a basis for making an award (see Special Conditions). Delivery manufactured or used in the performance of the contract, including its use •hall be within lhc normal working hours of the FKAA. Mondoy through by the FKAA the bidder uses any design, device. nr mnlcri.als oovcred by Friday, excluding holidays. Upon delivery the FKAA ha• five working days letters, patent or copyright it is mutually Db'l"Ced nnd understood without to inspect end approve the goods and services, un less bid spccifi e11tio11s or exception that the bid prices shall include all royalties or cost arising purchase order specify otherwise. Inspection and acceptance will he al from the use of such design, device, or materials in any way involved in desti nation unless 01hcrwise provided. Title lo/or risk of Joss or damage to the work. all items shall be lhe responsibility of the successful bidder until acceptance 17. SERVICE AND WARRANTY: Unless otherwise spccined, the bidder by the FKAA unless los~ or damage results from negligence by the FK.AA. shall defi ne any warranty service and replacements that will be provided. 9. INTERPR ETATIONS/DISPLJTES: Any question~ concerning conditions 18. ELIGlllLB l>NTITIES: rnnii;raph (21 (n), Section 287 .133, Florida and spcci fications should be submitted to the buyer no later than fi ve ( 5J Stntmcs provides that "A person or affiliate who has been placed on the dnys prior to the bid opening. Any person who is adversely affected by 3 convicted vendor list following a conviction for n puhlic entity crime may decision or intended decision sholl he subject to lhe FKAA ·s procedures for not submit a bid on n controct to provide any goods or service~ lo a public Bid Protests (48-101.11). ht case of anydouht or difference of opinion as tu entity. may not submil a bid on a contract with a ruhlic entity fur the the items to be furnished hereunder, the decision of the FKAA shall be final construction nr repair of a public building o r public work. may not submit and binding on both parties. bids on leases of real property 10 public entity, may not be awarded or 10 AWARDS: The FKAA reserves the right to accept any Bid or combination rcrfomt work as a contmclor, supplier, subcontractor. or con~ultant under of Bid ahcmatcs which. in the FKAA's j udgement will best serve the a cont rac1 with any public clllity. ond may not transact hu~incss with any FKAA ·s interest. ~jcct any and all Bids, to waive any and all infom1alitics public enlily in excess of the threshold :nnounl provided in Section and/or irrcgulnrities. nnd to negotiate contract terms with the Successful 287.017. for CATEGORY TWO for a period of (36) months from the date llidder. and the right to disregard all nonconforming. non-responsive. of being placed on the convicted vendor list." unbalanced or conditional Bids. The FKAA reserves the right lo reject any 19. LI ABILITY: The supplier shnll hold and save the l'KAA, its officers. nnc or all Bids. or any part of any Did. In waive any infonnalily in any Bid. ngcnt~. and employees harmless against cl~ims by third parties rcsulling nnd 10 award the purchase in the best interest of lhe FKAA. Discrepancies from the vendor's breach of contrncl or the vendor's negligence. in the multiplication of units of work and/or unit prices will be resolved in favor of the uni! price.

NOTE: ANY AND ALL SPECIAL CONDITIONS AN D SPECIFICATIONS ATrAC HED HERETO WHICH VARY FROM THESE GENERAi. CONDITIONS SHALL IIA VE PRECEDENCE.

2 Al J,·eJ. Tru~,.-' ~ FloV'>dA- FLORIDA KEYS AQUEDUCT AUTHORITY

IFB-00 J2-17

PURCHASE OF ROCK AND FILL FOR PROJECT 2331-17, MIDDLE/BIG TORCH WATER MAIN UPGRADE

The Florida Keys Aqueduct Authority seeks to purchase the following rock and fill as described below. The quantities listed below are estimates. The FKAA reserves the right to increase or decrease the quantities ordered as needed.

Qty. Product 400 tons DOT Crushed Rock 1,800 tons Pearock#89 100 yds. Flowable Fill 500 si -

All bids must be firm for a period of 3 months from the bid date.

All bids must be FOB destination to FKAA's jobsitc at MM 28, US Hwy. I.

Delivery must be made within 24 hours of call from FKAA representative.

An FKAA representative will call for delivery on an as needed basis.

Questions and Clarifications

Questions regarding this bid should be directed in writing via email to David Jackson, Purchasing Manager at djackson(a),fkaa.com.

Bid Requirements

Bids must be signed and clearly marked on the outside, "FKAA-IFB-0012-17 Purchase of Rock and Fill for Project 2331-17, Middle/Big Torch W~ter Main Upgrade." Bids must be received no later than 4:00pm Thursday, July I3 1h20 l7. Any bids received after this time will remain unopened and become property of the Florida Keys Aqueduct Authority.

Bids should be sent via FedEx., UPS or Courier and addressed to:

FKAA Purchasing Department 7000 Front St. (Stock Island) Key West, FL 33040

***Be advised that the United States Postal Service does not deliver to this address. *** Bid Form

Please note that the quantities listed arc not guaranteed and that the FKAA reserves the right to increase or decrease the order as needed. Bid will be awarded to the vendor with the lowest total cost for each product.

Total Cost DOT Crushed Rock:

Total Cost Pea Rock: f. s,, 750. 00

Total Cost Flowable Fill: -

The Governing Board of Directors of the Florida Keys Aqueduct Authority reserves the right to reject any and all bids, in whole or in part, to waive any irregularities or informalities in any bid, and to award to any party considered to be in the best interest of the Authority. BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY

AGENDA ITEM: DUO- OS' CONSENT: D REGULAR: [K)

MEETING DATE: July 26, 2017 DIVISION: UTILITY OPERATIONS

AGENDA TITLE: Consideration of approval to award Bid #IFB-FKAA-0010-17 to Airgas Specialty Products for a 1-Year Contract - Anhydrous Ammonia for use at the J. Robert Dean WTP at a cost of $0.74 per pound for a total amount of $71,040.

ITEM BACKGROUND: The Bid #IFB-FKAA-0010-17, Anhydrous Ammonia was posted on Demand Star, advertised, posted on the FKAA website, and forwarded to suppliers capable of providing the Authority with Anhydrous Ammonia to produce chloramines for disinfection at the J. Robert Dean WTP. On June 9, 2017, only one bid was received by Airgas Specialty Products. Staff has reviewed the bid documents submitted and found that Airgas Specialty Products to be the lowest responsive, responsible bidder at the unit price per pound of $0.74.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: NIA

STAFF RECOMMENDATION (MOTION): Staff recommends that the Board of Directors approve the award of Bid #IFB-0010-17 to Airgas Specialty Products for a 1-year Contract -Anhydrous Ammonia for use at the J. Robert Dean WTP at a cost of $0.74 per pound for a total amount of $71,040.

SUPPLEMENTAL INFORMATION: Staff has reviewed the bid documents and qualifications of the only and lowest responsive, responsible bidder, Airgas Specialty Products, at the cost of $0.74 per pound. The previous 1- year cost per pound was $0.75 with Tanner Industries. It is estimated that 96,000 pounds of ammonia will be utilized over the next 12 months at the J. Robert Dean WTP

DOCUMENTATION: Included: 0 To-Follow: D Not Required: D Cost to FKAA: $ 71 ,040 (est.) BUDGETED: Yes [KJ No CJ Cost to Others: $ Total Cost: $ 71,040 (est.)

DEPARTMENT: Engineering APPROVAL: ~ .(\L.

Executive Director:~

BOARD ACTION:

Approved: D Tabled: D Disapproved: D Recommendation Revised: D

Comments:------Date: ______Recording Clerk:______FLORIDA KEYS AQUEDUCT AUTHORITY INVITATION TO BID: COMMODITIES/SERVICES (BIDDERS ACKNOWLEDGMENT)

MAIL BIDS TO: FLORIDA KEYS AQ EOt:CT AUTHORITY 7000 Front St. (Stock b land) KEY WEST, FLORIDA 33040 (Tbcrt is no vSPS ddivtry to this addrtS$, l lPS and FtdEx only.)

I of 4 305) 296-2454 PROJECT# FILE # BID #-FKAA-IFB-0010-17 BIDS WILL BE OPENED: June 8 . 2017 at 4:OOpm 7000 Front St. BID TITLE: Purchase of Anhydrous Ammonia for the J. R. Dean Water Key West, FL 33040 (Stock Island) Treatment Plant, Florida City. FL 33034, I-year Conirnct.

and may not be wnhdrawn within (o 0 days after such date and time.

MAILING DA TE:

TELEPHONE NUMBER: t>eo-AW\W\t>A) A

I certify that this bid is made without prior understanding, agreement, or onncction with wiy corporation, finn, or person submitting a bid for the same materials. supplies. or equipment and is in all respects fair and without collusion or fraud. I agree to abide by all conditions of this bid and certify that I am authorized to sign this bid for the bidder and that the bidder is in compliance ~'iMft\~ ::ThemA5 ~I ~S with all requirements of the Invitation to Bid, including but not limited to, A~Signal ure (Typed) and Title of ertification requirements.

GENERAL CONDITIONS BIDDER: To insure atce lance ofthe bid follow lhese ins1ruc1ions

SF.ALED BIDS This form must be CKCCuted and returned \\~th one copy of all 3. BID OPENING: Shall be public, on the date and at the 11111e specified on bid sheets, as Wl!II as all addenda acknowledged. The face of the envelope shall the bid form . All bids received after that time shall become the property contain, in addillon to the above address, the date and time of the bid opening. of the Authority and remain unopened It is the bidder's responsibility to and the bid number. Do not include more than one bid per envelope. All bids are assure his bid is delivered at the proper time and place of the bid subject to the conditions specified herein. Those that do not comply with these opening. O!Ters by facsimile, telegram or telephone are not acceptable. conditions are subject to rejection 4. PRICES QUOTED: Deduct trade discounts and quote firm net prices. I. EXECUTION OF BID· All bids must contain a manual signature of an Unless otherwise specified, all prices quoted in this bid will remain firm authorized rcprcsenuit1vc in the space provided above to be considered for a period of 60 days. Give both unit price and extended totul. In case formal. lne company name must also appear on each page of the bid as of a mistake m extensions, the unit price will take precedence All prices required. F.O 8 . dest1nahon (unless otherwise specified in special cond itions). Prices and c>

Product must meet ANSI/ AWW A Standard 8305-15 (Revision of ANSI/ A WWA 8305-06), ANSI/NSF Standard 60, and the Florida Department of Environmental Protection Standards (Chapter 62-555) for additives and chemicals used for treating potable water.

The successful bidder must provide annual on-site training to FKAA personnel that meets the OSHA Process Safety Management and EPA Risk Management Plan requirements.

Percent by weight must meet the following: C-Grade 99.5% P-Grade 99.995%

Delivery shall be by bulk tank to the Florida Keys Aqueduct Authority, J. Robert Dean Water Treatment Plant, 35400 SW 192 Ave., Florida City.

Delivery will be scheduled by telephone call from Florida Keys Aqueduct Authority personnel to the shipper and shall be between the hours of 9:00AM and 4:00PM, Monday through Friday. Contract shall continue for one year from July I, 2017 through June 30, 2018.

Weight certification will be required. The driver must have in his possession a weight certificate from a certified weigher before a delivery will be accepted.

Delivery Schedule: Within seven (7) days after receipt of notice to deliver.

Proof of insurance required upon award of bid. (See attached insurance requirements.)

FKAA contact person: All questions should be addressed to David Jackson, Purchasing / Inventory Control Manager in writing via email to [email protected].

Quantity: Approximately 96,000 lbs. in a one year period.

Price per pound including delivery and total price including delivery.

$ 0 .7'1unit Price per pound Unit price per pound written out: Sf.tven±j -ti)L JY Cev'\+ .S

$ 11 0t/ D. OOrotal Price for the 1-Y ear Contract Period

Total Price for I-year contract, written out: Slvenbj ::OrJ ':fr :fh OJ'.>et.VJ ol ~'j d..o !lW'

Note: Prices will be firm for contract period, no escalation clause accepted.

3 " --- GENERAL CONDITIONS CONTINUED - ... 4. (Continued) Discrepancies between the indicated sum of any column of figures and the e) SAFETY STAN DARDS: Unless otherwise stipulated in the bid, all correct sum thereof will be resolved in favor of the correct sum. Within 60 manufactured items and fabricated assemblies shall comply with calendar days after the opening of Proposals, unless otherwise stated in the applicable requirements of Occupational Safety and Health Act and any Supplementary Conditions of the Documents. the FKAA will issue notice standards thereunder. that it intends to accept one of the proposals or will award the contract to f) BIDDER'S CONDITIONS: Any conditions to be made as part of the the lowest Base Bid. Acceptance of the Proposal by the FKAA will be by bid. should be submitted by letter with notes thereof on bid sheet for written Notice of Award, mailed or delivered to the office designated in the consideration. Proposal. In the event of the failure of the lowest responsible and g) PAYMENT: The vendor shall be paid upon submission of properly responsive bidder to meet the requirements of lhe Bid, the FKAA may certified invoices at the prices stipulated on the bid, after delivery and award the Contract to the next lowest responsible and responsive Bidder. acceptance of the goods and/or services, less deductions if any. as Such award. if made by the FKAA will be made with in 60 days after the provided. opening of Proposals. 5. EQUIVALENTS: Unless otherwise specified, any manufacturer's name, 11. ADVERTISING: In submitting a proposal, bidder agrees not to use the trade names, brand names, information and/or catalog numbers listed in a results there from as a pan of any commercial advertising. specification are for information and not to limit comperirion. Bid any 12. GOVERNMENTAL RESTRICTIONS: In the event any governmental brand which mccrs or exceeds the quality of specifi cations listed for any restrictions may be imposed which would necessitate alteration of the item. If the bid is based on equivalent products, indicate on the bid form the material, quality, workmanship or performance of items offered on this bid manufacturer's name and number and indicate any deviation from the prior to their delivery, it shall be the responsibility of the vendor to notify specifications as listed. Include fully descriptive literature on item(s). the FKAA at once. indicating in his letter the specific regulation which Lacking any written indication of intent to quote an alternate brand or model required an alteration. The FKAA reserves the right to accept any such number, the bid will be considered as a quotation in complete compliance alteration. including any price adjustments, or to cancel the contract at no with the specifications listed in the form. The FKAA reserves the right to further expense to the FKAA. determine acceptance of item(s) as an approved equivalent 13. ASSIGNMENT: Any purchase order issued pursuant to this bid invitation 6. NONCONFORMANCE TO CONTRACT CONDITIONS: !rems may be and the monies which may become due are not assignable except with tested for compliance with specifications under the direction of the Florida prior written approval of the FKAA. Department of Agriculture and Consumer Services. Items delivered not 14. CONFLICT OF INTEREST: The award hereunder is subject to Chapter conforming to specifications may be rejected and returned at vendor's 112, Florida Statutes. wherein it states, in pan: ·· ...all bidders must disclose expense. These items and items not delivered as per delivery date in bid with their bid the name of any officer, director, or agent who is also an and/or purchase order may be purchased on the open market. Any increase employee of the FKAA. All bidders must disclose the name of any in cost may be charged against the bidder. Any violation of these employee who owns directly or indirectly an interest of 5% or more in the stipulations may also result in the vendor's name being removed from the bidder's firn1 or any of its branches ... " FKAA vendor list. 15. LEGAL REQUIREMENTS: Applicable provision of all Federal, State, 7. SAMPLES: Samples of items, when required, must be furnished free of county and local laws, and of all ordinances, rules, and regulations shall expense and, if not destroyed, will, upon request, be returned at the bidder's govern any and all claims and disputes which arise between pcrson(s) expense. Request for the return of samples must be submitted by Jett.er with submitting a bid response hereto an the FKAA, by and through its officers. notes thereof on bid sheet. Each individual sample must be labeled with employees and authorized representatives, or any other person, natural or bidder's name, bid number, and item number. Failure of bidder to either otherwise: and lack of knowledge by any bidder shall not constitute a deliver required samples or to clearly identify samples as indicated may be cognizable dcrense against the legal effect thereof. reason for rejection of the bid. PATENTS & ROYALTIES: The bidder without exception, shall 8. DELIVERY: Unless actual date of delivery is specified (or if specified indemnify and save harmless, the FKAA and its employees, from liability delivery cannot be met). show number of days required to make delivery of any nature or kind, including cost and expenses for or on account of af\er receipt of purchase order in space provided. Delivery time may any copyrighted, patented, or unpatented invention, process, or article become a basis for making an award (see Special Conditions). Delivery manufactured or used in the performance of the contract, including its use shall be within the normal working hours of the FKAA, Monday through by the FKAA the bidder uses any design, device, or materials covered by Friday, excluding holidays. Upon delivery the FKAA has five working days letters. patcm or copyright it is mutually agn:ed and understood without to inspect and approve the goods and services, unless bid specifications or exception that the bid prices shall include all royalties or cost arising purchase order specify otherwise. Inspection nnd acceptance will be at from the use of such design, device, or materials in any way involved in destination unless otherwise provided. Title to/or risk of loss or damage to the work. all items shall be the responsibility of the successful bidder until acceptance 17. SERVICE AND WARRANTY: Unless otherwise specified, the bidder by the FKAA unless loss or damage results from negligence by the FKAA. shall define any warranty service and replacements that will be provided. 9. INTERPRETA TIONS/DJSPUTES: Any questions concerning conditions 18. ELIGIBLE ENTITIES: Paragraph (2) (a), Section 287.133, Florida and specifications should be submilled to the buyer no later than five (5) Statutes provides that .. A person or affiliate who ha~ been placed on the days prior to the bid opening. Any person who is adversely affected by a convicted vendor list following a conviction for a public entity crime may decision or intended decision shall be subject to the FKAA ·s procedures for nor submit a bid on a contract to provide any goods or services to a public Bid Protests (48-101.11 ). In case of any doubt or difference of opinion as to entity, may not submit a bid on a contract with a public entity for the the items lo be furnished hereunder, the decision of the FKAA shall be final construction or repair of a public building or public work, may not submit and binding on both parties. bids on leases of real property to public entity, may not be awarded or 10 AWARDS: The FKAA reserves the right to ucccpt any Bid or combination perform work as a contractor, supplier. subcontractor, or consultant under of Bid alternates which. in the FKAA ·s judgement will best serve the a contract with any public entity, and may not transact business with any FKAA's interest, reject any and all Bids. to waive any and all informalities public entity in excess of the threshold amount provided in Section and/or irregularities, and to negotiate contract terms with the Successful 287.017, for CATEGORY TWO for a period of (36) months from the date Bidder, and the right to disregard all nonconforn1ing, non-responsive_ of being placed on the convicted vendor lis1.•· unbalanced or conditional Bids. The FKAA reserves the right to reject any 19. LIABILITY: The supplier shall hold and save the FKAA, its officers, one or all Bids, or any part of any Bid, to waive any informality in any Bid, agents, and employees harn1less against claims by third parties resulting and to award the purchase in the best interest of the FKAA. Discrepancies from th o> .,.en~ l>reec~nt~ thc vendor's negligence. in the multiplication of units of work and/or unit prices will be resolved in favor of the unit price.

NOTE: ANY AND ALI. SPECIAL CONDITIONS AND SPECIFICATIONS ATTACHED HERETO WHICH VARY FROM THESE GENERAL CONDITIONS SHALL HAVE PRECEDENCE.

2 FLORIDA KEYS AQUEDUCT AUTHORITY BID OPENING SUMMARY

Bid number: _F_KAA_ _- I FB_ _-0_ 0__ 1~ 0_-1_7______

Bid description: Purchase of Ammonia 1-year Contract

Bid opening date: ..:9;..;-J;..:u""n'-·1'""'7______Time: ~4~:0~0~P~.M=·~ ------

Bid Bid Total Lump sum Comments Bidder's Name sealed si ned Bid Price

Airgas Specialty Products 7/, cJ/D·()D '1:!..,

Department Director or Deslgnee

Purchasing and Inventory Con1rol Manager/Designee ----- ====------

Buyer/Purchasing Administrator

Internal Auditor

Time bid opening adjourned J. Robert Dean Chairman Florida Keys p " District 3 Antoinette M. Appell Vice-Chairman e!t~!y~ri~ct Authority ~ p ~ District 4 Key West, Florida 33040 d~ David C. Ritz Telephone (305) 296-2454 ~ Secretary/Treasurer District 5 www.fkaa.com ~\\ <; ~ e> Cara Higgins ~'4\s&L},, ~-·· District 1 Richard J.Toppino ~v District 2 Kirk C. Zuelch Executive Director

MEMORANDUM

TO: Anthony Rosetti, Asst Manager of Production and Transmission

FROM: Krystal Waldner, Purchasing Admin

DATE: June 14, 2017

SUBJECT: FKAA-IFB-0010-17, Purchase of Anhydrous Ammonia

Subject bid opening was conducted on June 8, 2017. This bid was advertised once in one newspaper, as well as being published on the Authority's web site, and Demand Star. One bid was received, which was as follows:

Vendor Total Price

Airgas Specialty $71 ,040.00

It is recommended that we award the bid to Airgas Specialty as the lowest qualified bidder for this product. Please see the attached bid for your review. Please ensure that a purchase order is generated upon acceptance of the recommendation.

ACCEPTED:. ______UNACCEPTED:.______Reason for Not

u)~fJ~ Accepting Bid:------

General Counsel's Signature (If Bid Not Accepted): ______BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY

AGENDA ITEM: DUO- Olo CONSENT: D REGULAR: [KJ

MEETING DATE: July 26, 2017 DIVISION: UTI LITY OPERATIONS

AGENDA TITLE: Consideration to approve Contract Amendment 11 for Mathews Consulting to provide Engineer-of-Record and inspection services for the Cudjoe Regional Wastewater Collection System for an amount not to exceed $50,000.

ITEM BACKGROUND: Mathews Consulting performed the initial design work for the Inner Islands Collection, the Torch Keys and No Name Key. The County approved expansion of the central sewer system in north Big Torch. Therefore, Mathews Consulting will be performing additional design, permitting and engineering inspection services during construction to complete the Torch Keys and No Name Key projects.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: On May 25, 2017, the Board approved Mathews Consulting for Amendment 10 for Engineer-of-Record and inspection services for 3 months.

STAFF RECOMMENDATION (MOTION): Staff recommends the Board of Directors approve Contract Amendment 11 for Mathews Consulting to provide Engineer-of-Record and inspection services for the Cudjoe Regional Wastewater Collection System for an amount not to exceed of $50,000.

SUPPLEMENTAL INFORMATION: This work effort is within the scope and budget of the ILA between FKAA and Monroe County, and will be paid for with County funds. Proposed contract, scope and budget is attached.

DOCUMENTATION: Included: To-Follow: D Not Required: D BUDGETED: Yes [KJ Cost to FKAA: $ ----- NoO Cost to Others: Monroe $ 50,000 County Wastewater

Total Cost: $ ----'--50,000-

DEPARTMENT: Engineering DEPARTMEN RAPPROVAL: t-• 12. • ------'t.

BOARD ACTION:

Approved: D Tabled: D Disapproved: D Recommendation Revised: D

Comments: ______

Date:______Recording Clerk: ______EXHIBIT A PROJECT SCOPE AND BUDGET CONSTRUCTION ENGINEERING ASSISTANCE SERVICES CUDJOE REGIONAL WASTEWATER COLLECTION SYSTEM

AMENDMENT NO. 11

A. GENERAL DESCRIPTION

The project consists of the construction of a central wastewater collection and transmission system for the Cudjoe Regional System. The wastewater collection will be pumped to the new Cudjoe Key WWTP. The project is referred to as the "Cudjoe Regional Wastewater Collection System". The engineering work covered under this Contract will be for the following: • Construction Engineering Assistance for No Name Key LPSS. • Design Assistance for additional low pressure sewer system for Middle Torch/ Big Torch Key. • Permitting Assistance for low pressure sewer system for Middle Torch/ Big Torch Key • Construction Engineering Assistance for Middle Torch Key/Big Torch Key LPSS.

B. SCOPE OF SERVICES

CONSULTANT will provide professional engineering services to assist FKAA in additional design and construction of the projects. Mathews Consulting is the Design Engineer for the wastewater collection systems on Middle Torch/Big Torch Keys and No Name Key. The professional engineering services provided under this Contract will only include the following

NO NAME KEY LPSS

CONSULTANT recently completed the Design, Permitting and Bidding Services for the No Name Key LPSS. CONSULTANT shall continue to provide construction services for expanding the wastewater system to reach the No Name Key Area. The construction engineering services shall include the following subtasks:

1.2 Project Meetings

CONSULTANT shall attend pre-construction meeting and progress meetings as requested by FKAA.

1.3 Construction Clarifications

CONSULTANT shall respond in writing to FKAA's Request for Information (RFI) regarding the design documents as requested by FKAA. CONSULTANT shall issue interpretations and clarifications of the Contract Documents, along with associated support materials, as requested by FKAA. These interpretations will be rendered and a response prepared and submitted to the FKAA within two (2) to four ( 4) working days.

23 1.4 Coordination with FKAA & Program Manager

CONSULTANT shall coordinate engineering design questions for the project with FKAA via telephone and emails during the construction period on an as needed basis.

1.5 Periodic Field Inspections

CONSULTANT shall visit the project site periodically and witness some of the pressure tests. A field report shall be prepared for each inspection.

1.6 Coordination regarding Location of Low Pressure Grinder Pump Stations & coordination with Solar Requirements

CONSULTANT shall coordinate with FKAA and Homeowners for locations of low pressure sewer simplex lateral kit. This shall also include coordination with Homeowners regarding solar requirements for the houses that are not on the power grid.

1. 7 Certification of Construction Complete

CONSULTANT shall certify to FDEP based on visible project features, CONSULTANT's limited inspections and review of testing reports that the project was constructed in accordance with the plans and specifications submitted in the permit applications.

1.8 Substantial and Final Inspection

In conjunction with FKAA staff, make preliminary and final inspections and assist in the preparation of a "punch list" to achieve Substantial Completion.

MIDDLE TORCH KEY/ BIG TORCH KEY LPSS

CONSULTANT recently completed the Construction Drawings and Permitting for the Middle Torch Key / Big Torch Key LPSS. The County approved expansion of the central sewer system in north Big Torch. Therefore, PK.AA has requested that CONSULTANT provide additional design services, permitting services and limited construction services during FKAA's installation of the low pressure force main and appurtenances. The design, permitting and construction services shall include the following tasks:

1.9 Design Services

CONSULTANT shall provide civil, mechanical and electrical design for the additional houses in order to provide them with a low pressure sewer system. This shall include coordination with FKAA staff as required.

1.10 Permitting Assistance

Consultant shall modify the existing Middle Torch Key/Big Torch Key FDEP Permit for Constructing a Domestic Wastewater Collection/Transmission System for the additional houses.

24 C. FEES

The services provided under Task Group 1 and Reimbursable Expenses shall be performed under the Wage Cost Multiplier method of compensation as provided for in Method II of the Agreement. The hourly rates and reimbursable expenses shall be per our Agreement with FKAA.

Fee Table C u d.aoe R e210na. I W astewater C oII ection S,ystem

TASK DESCRIPTION Wage Cost Lump Sum Fee Fee($) ($)

Tasks 1.2 through 1.10 - Design, Permitting & Construction $40,000.00 Engineering Assistance

Reimbursable Expenses $10,000

FEE TOTAL $50,000.00 (Allowance)

To the extent possible the level of effort and the associated fee for services has been defined and any assumptions made noted herein. If the scope of services changes substantially due to unforeseen circumstances or at the request of the FKAA, the level of effort and associated fees for professional services will be adjusted by mutual agreement.

Assumptions:

1. The fees included are based on an Allowance of $50,000.00. Consultant shall inform FKAA when 75% of the Allowance has been billed. Any remaining Allowance at project completion will be returned to FKAA.

25 SIGNED:

ENGINEERING CORPORATION

Mathews Consulting, a Baxter & Woodman Company

David L. Mathews, Vice President

ACCEPTED:

FLORIDA KEYS AQUEDUCT AUTHORITY

Kirk Zuelch, Executive Director

END OF TASK ORDER

26 Revised BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY

AGENDA ITEM: DUO-07 CONSENT: D REGULAR: [KJ

MEETING DATE: July 26, 2017 DIVISION: UTILITY OPERATIONS

AGENDA TITLE: Consideration of recommendation to proceed with construction of a new seawater treatment system on Stock Island estimated amount not to exceed $38,000,000, pending budget approval.

ITEM BACKGROUND: The 2017 budget includes improvements to the Stock Island seawater treatment plant to provide added reliability for water supply in the keys, especially following major storm events. A study was recently conducted to evaluate options for providing emergency water supply from Stock Island. A recommendation from staffis attached, based upon this evaluation and historic events.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: On November 16, 2016, the Board engaged Wharton-Smith for Design-Build services relative to Stock Island Water Treatment Plant improvements; on December 21, 2016 the Board approved an Alternative Analysis Study.

STAFF RECOMMENDATION (MOTION): Board approve recommendation to proceed with construction of a new seawater treatment system on Stock Island estimated amount not to exceed $38,000,000, pending budget approval.

SUPPLEMENTAL INFORMATION: See attached staff recommendation

TATION: DOCUMEN Included: To-Follow: D Not Required: D $ Cost to FKAA: BUDGETED: YesD No CJ $ Cost to Others: $ Total Cost: ______

DEPARTMENT: Engineering DEPARTMENT DIRECTOR APPROVAL:

DIVISION DIRECTOR APPROVAL: ______Reviewed by: Internal Auditor: * General Counsel: &{r Executive Director:�

BOARD ACTION:

Approved: Tabled: Disapproved: Recommendation Revised:

Comments:______

Date: ______Recording Clerk:______BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY

AGENDA ITEM: DUO- 01 CONSENT: D REGULAR: [KJ

MEETING DATE: July 26, 2017 DIVISION: UTILITY OPERATIONS

AGENDA TITLE: Consideration of recommendation to proceed with construction of a new seawater treatment system on Stock Island, pending budget approval.

ITEM BACKGROUND: The 2017 budget includes improvements to the Stock Island seawater treatment plant to provide added reliability for water supply in the keys, especially following major storm events. A study was recently conducted to evaluate options for providing emergency water supply from Stock Island. A recommendation from staff is attached, based upon this evaluation and historic events.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: On November 16, 2016, the Board engaged Wharton-Smith for Design-Build services relative to Stock Island Water Treatment Plant improvements; on December 21, 2016 the Board approved an Alternative Analysis Study.

STAFF RECOMMENDATION (MOTION): Board approve recommendation to proceed with construction of a new seawater treatment system on Stock Island, pending budget approval. .

SUPPLEMENTAL INFORMATION: See attached staff recommendation

DOCUMENTATION: Included: To-Follow: D Not Required: D Cost to FKAA: $ BUDGETED: YesD No CJ Cost to Others: $ Total Cost: $ ______

DEPARTMENT: Engineering DEPARTMENT D ECTOR APPROVAL: ------

DIVISION DIRECTOR APPROVAL:, ______~ ------~ Reviewed by: Internal Auditor: -4j:- General Counsel: (Rf{f'

BOARD ACTION:

Approved: D Tabled: D Disapproved: o Recommendation Revised: D

Comments: ______

Date:,______Recording Clerk:, ______J. Robert Dean Chairman 0 Florida Keys District 3

Aqueduct Authority fa Richard J. Toppino 1100 Kennedy Drive Vice-Chairman Key West, Florida 33040 District 2 Telephone (305) 296-2454 www.fkaa.com David C. Ritz Secretary/Treasurer District 5

Antoinette M. Appell District 4

Cara Higgins District 1

Kirk C. Zuelch Executive Director RECOMMENDATION FOR SEAWATER TREATMENT IMPROVEMENTS AT STOCK ISLAND

TO: Board of Directors VIA: Kirk Zuefch, Executive Director FROM: Jolynn Reynolds, Manager of Engineering ~ , l. ·2..- · DATE: July 18, 2017

Our Capital Improvement Plan (CIP) currently includes a major line item project to improve emergency water supply for our customers. During the last Board meeting (May 25, 2017), we discussed various options for providing a more reliable system to treat seawater at the Stock Island facility. The options include treatment systems with added capacity and the existing facility with the same capacity. The design/builder for this project presented technical and cost information about these options and focused on the three more favorable alternatives for consideration.

The presentation was based upon a comprehensive alternative analysis conducted by the design/build team over the past six months and memorialized in five technical memoranda. All the data and reports are available, as needed, if the project moves into the final design phase. The three options mentioned are briefly described below.

Alternative 1 - provides a new 4 million gallons per day (MGD) reverse osmosis (RO) treatment housed in a new building. This option features all new process equipment and facilities, highest system reliability, robust controls, and nominal maintenance. This option allows the existing building to be repurposed for other workforce needs. The RO membranes can also be reused at the Marathon RO plant, for future cartridge replacement. These reusable features are important in the overall consideration, since they reflect approximately $8 million in asset value for operations.

Figure 1 - Alternative 1 and 2 concept view

1 JPage Alternative 2 - provides a new 4 MGD treatment building with a hybrid RO system; including 2MGD of all new equipment and 2 MGD of existing/new treatment equipment. While providing 4 MGD of supply capacity, the treatment will use two separate sets of RO membranes which will require additional operational control and maintenance. This option also allows repurposing of the existing building.

Alternative 3 - provides rehabilitation and upgrade of the existing 2 MGD treatment system. This option will replace the diesel engines, piping, and most equipment. The existing RO membranes, membrane cartridges and skids, however will be utilized in this option.

All three of these alternatives include new electric power supply. The supply will be furnished by new generators as part of the project. Figure 2 - Alternative 3 concept view Alternatives 1 and 2 allow for repurposing the existing building, resulting in an added credit value of approximately $6 million. There is a current need for equipment storage, warehousing materials and field office space in the lower keys; using the existing structure would save the cost of constructing a new building.

Each of the alternatives has attributes that will demonstrate major improvements to the existing treatment system at Stock Island. They have differences in anticipated performance and cost considerations from which to be judged for future needs. For assistance in selecting the best alternative for FKAA, a comparison of performance criteria is presented on Table 1 below to summarize the expected performance of each alternative relative to the other alternatives.

Table 1 - Summary of Alternative Systems' Comparison

••••• Re purpose Capital Costs • : Existing . : .: Membranes 1-New4 MGD Excellent •50 % ••Excellent Yes Yes $41 - 43 mil 2-Hybrid 4 MGD High 50% Good Good Yes No $36- 38 mil

3-Rehab 2 MGD Good 25% Fair Good No No $19 - 22 mil

*Capacity presented as a percentage of the average daily flow for the lower keys.

The above summary shows Alternative 1 to provide the best performance based on the given functional criteria. It also provides the best option of repurposing existing assets. This alternative is the highest capital cost option, yet will demonstrate the lowest operating costs. Alternative 2 provides a good level of service based on the comparison, yet at a level below that of Alternative 1. The capital expenditure is $5 million less than Alternative 1 and will provide the same capacity of 4 MGD when needed. However, the reutilization of existing RO skids with limited service life will need to be addressed in upcoming years.

2 jPage Alternative 3 will provide much better system performance than the existing system and a cost much less than Alternatives 1 and 2. However, the cost for rehabilitating is high and will only provide half the capacity anticipated to handle the anticipated emergency demands. Also, the service life of the existing RO skids is limited in comparison to Alternative 1 and 2. Historical evidence shows that major hurricanes have impacted the Florida Keys on a relatively high frequency and associated impacts to infrastructure have proven to be significant. Future damage to bridges and our transmission pipeline during one of these events could be catastrophic and require weeks or months to repair. Similar impacts to bridges and our associated bridge pipe could also be caused by a fuel truck or boat accident. If such damage occurred, FKAA should be prepared to deliver water to customers throughout the keys to the best of our ability. With the potential for such interruption to our transmission system, FKAA needs to have a reliable and sufficient emergency supply located in the lower keys. Although the existing system of Stock Island could be rehabilitated to provide a more reliable supply, it will not provide the anticipated 4 MGD demand for the customers in the lower keys. Based on this background, it is recommended that a 4 MGD option be implemented. Since the system will be built and operated primarily for emergency mode, the equipment will not be needed on a constant basis. Although maintenance and service duty will be critical to have the system ready at any time, it won't receive the same level of demand and fatigue as a full duty system. Therefore, Alternative 2 with a budget of $38 million is recommended for this project with the understanding that several other critical CIP projects also require funding at this time and capital cost evaluation of all projects is pivotal to prioritizing these projects and associated impacts to the budget.

This recommendation is conditioned on two factors: • Upon detailed design and negotiation, if the design-builder is able to deliver Alternative 1 for a not-to-exceed cost of $38 million, the FKAA would consider implementing Alternative 1 instead of Alternative 2.

• An approved FY 2018 budget with the CIP inclusive of this $38 million project.

3\ Page BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY

AGENDA ITEM: BOD-0 1 CONSENT: D REGULAR: [KJ

MEETING DATE: JULY 26, 2017 DIVISION: BOARD OF DIRECTORS

AGENDA TITLE: Board of Directors Discussion

ITEM BACKGROUND: The Board of Directors can bring up any subject they deem necessary to be discussed at this time.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: N/A

STAFF RECOMMENDATION (MOTION): N/A

SUPPLEMENTAL INFORMATION: N/A

DOCUMENTATION: Included: D To-Follow: D Not Required: D Cost to FKAA: $ BUDGETED: YesD NoD Cost to Others: $ Total Cost: $ -----

DEPARTMENT: Board of Directors DEPARTMENT DIRECTOR APPROVAL:

DIVISION DIRECTOR APPROVAL: /~

Reviewed by: Internal Auditor: ~ General Counsel: ~ Executive Director: f;J=

BOARD ACTION:

Approved: D Tabled: o Disapproved: D Recommendation Revised: D

Comments: ------Date: ______Recording Clerk:------