Withlacoochee River Basin Board Information and Budget Notebook Thursday, October 16, 2008 9:00 a.m. Withlacoochee River Brooksville Headquarters 2379 Broad Street Brooksville, Florida (352) 796-7211 WITHLACOOCHEE RIVER BASIN BOARD Ronald E. Oakley, Co-Chair Ex Officio Douglas B. Tharp, Co-Chair Ex Officio Patricia "Patsy" Nathe, Vice Chair Janey Baldwin, Secretary Jack Dennis, Member Paul Mazak, Member Bo Rooks, Member Seeth Trimpert, Member Committee Representatives: Basin Board Education Committee Primary: Patsy Nathe Alternate: Janey Baldwin Basin Board Land Resources Committee Primary: Bo Rooks Alternate: Jack Dennis Citrus/Hernando County Waterways Restoration Council Primary: Bo Rooks Alternates: Jack Dennis Janey Baldwin Withlacoochee River Basin Board Meeting Agenda Brooksville, Florida October 16, 2008 9:00 a.m. ITEM PRESENTER 1. Call to Order and Roll Call Ron Oakley/Annette Zielinski 2. Pledge of Allegiance to the American Flag Ron Oakley 3. Additions and Deletions to the Agenda Lou Kavouras 4. Oath of Office for Appointed/Re-Appointed Board Members Lou Kavouras 5. Consent Item: a. August 14, 2008, Meeting Minutes [See Exhibit 1] Lou Kavouras 6. Discussion Item: a. Fiscal Year 2009 Final Budget Adjustment for Ratification Linda Pilcher [See Exhibit 2] 7. Report: a. Report on Governing Board Activities Ron Oakley/Doug Tharp 8. Announcements: Lou Kavouras a. Basin Board Education Committee: Tuesday, November 4, 9:30 a.m., Tampa Service Office b. Partners in Watershed Education Awards: Wednesday, November 19, 2008, 9 a.m., Crowne Plaza Hotel, Tampa c. State of the Water Resources Workshop: Friday, November 21, 2008, 8 a.m., InterContinental Tampa Hotel d. Public Land Acquisition and Management Partnership Conference: December 3-5, 2008, Hyatt Regency Jacksonville Riverfront e. Basin Board Land Resources Committee: Wednesday, December 3, 2008, 5 p.m., during the Public Land Acquisition and Management Partnership Conference f. Next Basin Board Meeting: Thursday, December 11, 2008, 9 a.m., Brooksville Headquarters g. Other 9. Adjournment Ron Oakley ****THE ANNUAL PLANNING WORKSHOP WILL IMMEDIATELY FOLLOW THIS MEETING **** Information Items are located at the end of the Summary Agenda. If you have questions about this meeting, please call 1-800-423-1476 or 352-796-7211, x4610. SUMMARY AGENDA Withlacoochee River Basin Board Meeting Thursday, October 16, 2008 9:00 a.m. 1. Call to Order and Roll Call Presenters: Ronald E. Oakley, Chair Ex Officio Annette Zielinski, Senior Administrative Assistant Boards and Executive Services 2. Pledge of Allegiance to the American Flag Presenter: Ronald E. Oakley, Chair Ex Officio 3. Additions and Deletions to the Agenda Presenter: Lou Kavouras, Deputy Executive Director Outreach, Planning and Board Services 4. Oath of Office for Appointed/Re-Appointed Board Members Presenter: Lou Kavouras 5. Consent Item: a. August 14, 2008, Meeting Minutes Basin Board members were provided minutes of the August 14, 2008 meeting for review. Staff Recommendation: See Exhibit 1 Approve the August 14, 2008, meeting minutes, as presented. Presenter: Lou Kavouras 6. Discussion Item: a. Fiscal Year 2009 Final Budget Adjustment for Ratification Purpose To request ratification of the action taken by the Governing Board on September 30, 2008 to change the Basin's budget in response to direction received from Governor Charlie Crist in his budget approval letter. Background The District received a budget approval letter from Governor Charlie Crist dated September 16, 2008. Governor Crist indicated that he had reviewed and approved the District's annual budget for fiscal year (FY) 2009, with the exception of redirecting all water management districts' dollars proposed for salary increases to expedite projects. Summary Agenda October 16, 2008 Withlacoochee River Basin Board Page 2 of 6 He asked that emphasis be placed on expediting capital projects that are result oriented and implementable, while also meeting the planned long-term needs of the regions. Governor Crist directed that this measure be taken as a proactive strategy to promote economic stimulus for Florida. In response to Governor Crist's direction, the Governing Board at its meeting on September 30, 2008, approved the redirection of budgeted dollars that had been associated with proposed merit increases to a list of identified projects for inclusion in the final District budget that was adopted at the second and final public hearing held on September 30, 2008, at 5:01 p.m., with the individual projects selected to receive redirected Basin dollars to be ratified by the respective Basin Boards in October 2008. A list of projects to which the redirected budgeted funds were allocated by the Governing Board for the Basin Board's ratification and Governor Crist's letter are attached as exhibits for this item. For the Withlacoochee River Basin, the FY2009 budget adopted by this Basin included $29,481 for proposed merit increases: $17,414 funded from ad valorem based sources and $12,067 funded from the Save Our Rivers Program (State Water Management Lands Trust Fund). The Governing Board approved the allocation of the $17,414 in ad valorem based funding to the Dade City Reclaimed Water Project and the $12,067 in Save Our Rivers funding to the Green Swamp West project for additional costs related to the pavilion construction on District lands. These projects will be expedited during FY2009. Staff Recommendation: See Exhibit 2 To ratify the Governing Board's action to redirect $29,481 of budgeted dollars that had been allocated for proposed merit increases to the Dade City Reclaimed Water Project for $17,414 and to the Save Our Rivers Green Swamp West project for $12,067. Presenter: Linda R. Pilcher, Assistant Finance Director 7. Report: a. Report on Governing Board Activities Ron Oakley/Doug Tharp An update will be provided on key issues before the Governing Board. 8. Announcements Lou Kavouras a. Basin Board Education Committee: Tuesday, November 4, 9:30 a.m.,Tampa Service Office b. Partners in Watershed Education Awards: Wednesday, November 19, 2008, 9 a.m., Crowne Plaza Hotel, Tampa c. State of the Water Resources Workshop: Friday, November 21, 2008, 8 a.m., InterContinental Tampa Hotel d. Public Land Acquisition and Management Partnership Conference: December 3-5, 2008, Hyatt Regency Jacksonville Riverfront e. Basin Board Land Resources Committee: Wednesday, December 3, 2008, 5 p.m., during the Public Land Acquisition and Management Partnership Conference f. Next Basin Board Meeting: Thursday, December 11, 2008, 9 a.m., Brooksville Headquarters Summary Agenda October 16, 2008 Withlacoochee River Basin Board Page 3 of 6 g. Other 9. Adjournment Ron Oakley **Information Items** The item(s) listed below are for the Board's information, intended to keep the Board apprised of completed projects, cancelled projects, and projects that have executed contracts and are ready to begin. The item(s) do not require Board action at this time. Formal presentations are not planned, but staff will make presentations and/or answer questions at the next Board meeting, if requested. 1. Agreement with Fletcher Marine, Inc. for the Sale of Shell Material from the Lake Panasoffkee Restoration Project (This item was approved by the Governing Board at its September meeting) This is to inform the Withlacoochee River Basin Board of the Governing Board entering into an agreement with Fletcher Marine, Inc. (FMI) to allow FMI to sell a limited amount of shell material deposited at the upland spoil disposal area of the Lake Panasoffkee Restoration Project in order to compensate FMI for inflated fuel and energy costs incurred over the course of the Project. The Legislature passed Chapter 98-69, Laws of Florida, creating the Lake Panasoffkee Restoration Council (Council). The final restoration plan recommended by the Council in its 2003 Report to the Legislature is comprised of four steps. Step 1 of the plan, the Coleman Landing Pilot Dredging Project, was completed in December 2000. Steps 2 and 3 of the plan (the Project) constitute the full-scale in-lake restoration effort, and is scheduled to be complete in early October. Step 4, the cleanout of the residential canals along the western shoreline of Lake Panasoffkee was completed by Sumter County in June 2008. The District advertised the dredging contract for the Project in July 2003. Since the contract award in August 2003, fuel costs have dramatically escalated from $0.98 per gallon in August 2003 to as high as $4.16 in July 2008. In bidding the project, the District's dredging contractor estimated fuel costs would increase at a rate of ten percent a year over the life of the Project. Although compensation for inflated fuel costs is beyond the terms and conditions of the contract agreement, the Council did recommend, and the Withlacoochee River Basin Board and Governing Board did approve, a one time fuel adjustment in the amount of $322,932 for inflated fuel and energy costs up through April 2006. Since April 2006, FMI, the dredging subcontractor for the Project, has incurred an additional $1,086,989 in inflated fuel costs through September 16, 2008. In its 2007 Report to the Legislature, the Council indicated its desire to provide additional compensation for fuel costs to the contractor, and requested an additional $1,000,000 for fuel and energy adjustments in the State’s 2008 budget; however, funds were not appropriated. FMI is a subcontractor to Subaqueous Services, LLC, the prime contractor for the Project. The District contracted directly with FMI for compensation of inflated fuel and energy costs, rather than contracting with Subaqueous Services, LLC. This arrangement was agreeable to both Subaqueous Services, LLC and FMI. Summary Agenda October 16, 2008 Withlacoochee River Basin Board Page 4 of 6 The agreement allows FMI five years to sell shell material at a recognized $2.60 per cubic yard (in-place volume) of material sold. The agreement allows FMI to remove up to 461,538 cubic yards of shell material within the five year time frame.