agenda - keys energy services€¦ · 08/07/2020 · 2700 block harris 11 1 0 1 100% 1$ 2,100 key...

AGENDA UTILITY BOARD OF THE CITY OF KEY WEST, FL

REGULAR MEETING - WEDNESDAY, JULY 8, 2020 – 5:00 P.M. 1001 JAMES STREET – KEYS ENERGY SERVICES BOARD ROOM

1. Pledge of Allegiance

2. Invocation 3. Mission and Vision

4. Roll Call

5. Set Agenda 6. Informational Items:

a) Department Staff Report – Front Street Distribution Project – Fred Culpepper, Director of Transmission & Distribution b) Power Supply Report – June 2020

c) Financial and Operational Indicators – May 2020 d) Quarterly Easement Report e) Schedule of Unit Price Purchase Orders Quarterly Report f) Federal Emergency Management Agency (FEMA) Quarterly Report g) Rate Workshop Update

7. Consent Agenda* a) Approve Minutes – Regular Utility Board Meeting – June 17, 2020 b) Approve Minutes – Utility Board Strategic Planning Workshop – June 10, 2020 c) Approve Minutes – Utility Board Rate Workshop – June 3, 2020 d) Approve Disbursement Report e) Approve Renewal of KEYS’ Self-Insured Health Benefits Plan with Cigna Corporation f) Approve Renewal of KEYS Dental Benefits Plan with Connecticut General Life Insurance Company (CGLIC) g) Approve Renewal of KEYS Vision Benefits Plan with Connecticut General Life Insurance Company (CGLIC) h) Approve Renewal of KEYS Basic Life, AD&D and Supplemental Life Insurance Benefits with Standard Insurance i) Approve Renewal of KEYS Long Term Disability Insurance Benefits with Standard Insurance

j) Approve Piggyback Contract with Commonwealth Associates, Inc. for Florida Keys 10-Year Transmission Planning Study k) Declare Stock and Non-Stock Substation Breakers and Stock Recloser as Surplus

8. Action Items a) Approve Amended Budget for Fiscal Year 2020 b) Approve KEYS Strategic Plan for 2021 c) Approve Emergency Pay Guidance Policy d) Approve Resolution No. 20-07 Amending Disaster Reserve and Mitigation Fund e) Approve Resolution No. 20-08 Establishing a Minimum Pension Contribution

9. Public Input / Other Business

10. Adjournment

* Item is considered to be routine and enacted by one motion with no separate discussion, unless requested by a Utility Board Member or citizen, in which event the item will be considered independently.

Peter Batty, Chair ● Mona Clark, Vice Chair Robert Barrios, Member ● Timothy Root, Member ● Steven Wells, Member

140.87

2020 June Peak 139.23

2019 Peak 145.2 2020 YTD Peak 139.23

Overall Peak (YR 2017) 148.7

SYSTEM LOAD STATISTIC

2019 June Peak

June 2020Utility Board Meeting

July 8th

10

21

0

2

0 0 0

46

0 0 0 0 0 0

02468

101214

Qu

an

tity

Of

Ou

tag

es

Transmission OutagesQuantity

2019 2020

3 35

2

12

1 01 3 5 2

7

26

44

8

1 29

30

23

0

10

20

30

40

50

Qu

an

tity

Of

Ou

tag

es

Distribution Feeder OutagesQuantity

2019 2020

4 5 54

6

18 1612

6 6 36

42

91

4 4 2 52 5

22

0

20

40

60

80

100

Qu

an

tity

Re

clo

se

rs

Distribution Feeder ReclosuresQuantity

2019 2020

84 3

4 5 10 5 34

4 15

34

55

17

51

111 2

37

51 54

84

60

0

20

40

60

80

100

Ou

tag

e m

inu

tes

SA

IDI

Distribution OutageAverage Duration Index

2019 2020

Transmission Significant Events

None this month

4

62

96

14

161175

0020406080

100120140160180200

Ou

tag

e M

inu

tes

SA

IDI

Transmission OutageAverage Duration Index

2019 2020

Distribution Significant Events

Feeders - 3

Date: 6/19/20 @ 9:04 pmFeeder: KDS 9Duration: 2 minsCustomers: 1,370 Cause: Manual Open - (Balloon)

Date: 6/24/20 @ 9:10 amFeeder: KDS 9 Duration: 5 minsCustomers: 1,526 Cause: Employee Error Keys

Date: 6/24/20 @ 9:10 amFeeder: WSS 7 Duration: 6 minsCustomers: 1,141 Cause: Employee Error Keys

Laterals - 153 - Equipment Failure 9 - Weather 1 - Vegetation 2 - Animal

Reclosures - 22 - Undetermined - Unconfirmed2 - Weather 1 - Balloon

X X

X X

X X

X X

X X

Budget

Provide Explanation Monitor

447,729,993

Acceptable Variance

Acceptable Variance Favorable

443,383,485

-20% -10% -5% 5% 20%

$7,174,871

Electric (kWh) Sales - YTD

Budget

Transmission O&M Expense

Budget

$1,935,545

10% 9%


Acceptable Variance


Acceptable Variance


Other Operating Revenue Administrative & General O&M Expense

Budget Budget


8% -8% -10%

$1,516,268 $8,409,546

-20% -15% -10% 10% 20%

21,888 $5,883,049



Acceptable Variance

Acceptable Variance Favorable Unfavorable

Acceptable Variance

9% 6% -6% -12%

$6,840,672 20,713

20% 15% 10% -10% -20% 12%

Distribution O&M Expense Past Due Customers - YTD

Last YearBudget

$4,984,484 ($2,885,803)



Acceptable Variance



Acceptable Variance

10% -10% -20%

($3,272,911) $5,580,949

20% 15% 10% -10% -20% 20% 15%

Non-Operating Revenue & (Expense)

Avg PCA ($16.96) is lower than budget of ($0) = ($7.6M); PCA undercollection $1.6M; $196K Energy & Demand.

3.02 $58,941,468

Favorable


Acceptable Variance

Acceptable Variance Favorable Provide Explanation Monitor

For the Eight Months Ended May 31, 2020Financial Indicators Utility Board of the City of Key West, Florida

Electric Revenue Debt Service Coverage Ratio

Budget Required by Bond Covenant

Budget

$32,719,453

20% 10% 10% -10% -20%

10% 20%

$65,613,562 1.25

-10% -9% -8% 8% 10% -20%

$26,398,268

UnfavorableAcceptable Variance


Purchased Power Expense - YTD

Inaccessible Facilities Relocation Project July - 2020

Status Update

Executive Summary

Construction All KEYS high voltage installation work is complete Removal of the old power lines are ongoing

Customer Interface

KEYS continues its aggressive outreach program via letters, on-site meetings, dedicated KEYS phone line, website and FAQ’s.

Current target zone with riser relocations are Fogarty, Staples, Patterson and Harris Avenues; along with Seidenberg and Flagler Avenues.

AT&T, Comcast & City Coordination KEYS continues coordination efforts with AT&T and Comcast on performing their transfers in

accordance with the City’s requirement of a two-year time frame. o Letters on the two-year time frame were sent to AT&T and Comcast in January 2013.

KEYS has made concerted efforts to have them relocate their facilities. City of Key West’s Staff is very helpful and supportive on resolving issues ranging from tree

trimming, ADA and pole location concerns on the City’s Rights-of-Ways. AT&T, Comcast & the City continue to work together to keep the project moving forward.

Riser Relocations – Key West

Relocation of risers is taking longer to perform than Staff expected Total of 213 meter relocations to date out of 252. There are 39 meters remaining to relocate. The average of the 156 meter rebates processed is $2,081. Thirty-eight customers have paid

more than the rebate cap of $2,100, with an average of $950 over the maximum.

Riser Relocations – Keys Total of three meters out of 51 relocated in the Keys to date. There are 48 meters remaining to

relocate. The average of the meter rebates processed is $2,100

Project Cost and Budget

Project overall funding is on track. There are no issues or concerns at this time. KEYS has processed over $264,000 in customer rebates

Current and Future Issues to Resolve

KEYS expressed concerns to AT&T and Comcast about their non-conformance to the City’s resolution of 24 months to transfer to the front

AT&T and Comcast relocation required to complete Prado Circle

Overall Project Summary/Status All KEYS high voltage installation work is complete. Customer risers continue to be relocated, but at a slower rate than expected. Local utilities are behind on the City’s two-year transfer requirement. There were four risers relocated this quarter. There were four rebates submitted this quarter.

Quarterly Total 3300/3400 Block Riveria & Flagler 42 15 0 15 100% 15 24,524$ 800 Block Waddel & Washington 55 9 0 9 100% 9 7,695$ 800 Block South & Washington 26 11 0 11 100% 11 30,270$ 2800/2900 Block Harris 48 9 0 9 100% 7 8,010$ 2800/2900 Block Fogarty 30 4 0 4 100% 4 7,240$ 2700 Block Harris 11 1 0 1 100% 1 2,100$ Key West Phase 1 Subtotal 212 49 0 49 100% 47 79,839$ 2400 Block Harris & Seidenberg 32 15 0 12 80% 4 7,797$ 2600 Block Flagler & Staples 23 21 1 16 76% 14 28,801$ 2600 Block Harris & Fogarty 29 13 0 7 54% 7 14,700$ 2500 Block Patterson & Fogarty 36 9 2 9 100% 9 17,477$ 2400 Block Patterson & Fogarty 50 15 0 15 100% 11 19,600$ 2300 Block Patterson & Fogarty 33 11 1 9 82% 3 5,934$ 2200 Block Patterson & Fogarty 18 10 0 8 80% 4 5,303$ 1900 Block Patterson & Fogarty 26 17 0 13 76% 13 23,250$ 2000 Block Patterson & Fogarty 42 18 0 14 78% 12 10,225$ 2100 Block Patterson & Fogarty 37 16 0 15 94% 8 8,260$ 1900 Block Patterson & Roosevelt 35 11 0 11 100% 9 9,240$ 2000 Block Patterson & Roosevelt 13 8 0 4 50% 4 6,111$ 2100 Block Patterson & Roosevelt 8 6 0 4 67% 2 4,068$ Key West Phase 2 Subtotal 382 170 4 137 81% 100 $160,7661200/1300 Block Johnson & Flagler 18 4 0 4 100% 3 6,180$ 3500 Block Flagler & Eagle (East) 14 6 0 3 50% 3 5,650$ 3500 Block Flagler & Eagle (West) 15 6 0 5 83% 2 3,525$ 1800 Block Harris & Seidenberg 27 5 0 5 100% 0 ‐$ 1700 Block Catherine & HOB 13 7 0 6 86% 0 ‐$ 1600 Block Catherine & HOB 11 4 0 3 75% 0 ‐$ 2600 Block Seidenberg & Harris 6 1 0 1 100% 1 2,100$ Key West Phase 3 Subtotal 104 33 0 27 82% 9 17,455$ Warner St ‐ Big Pine 6 0 0 0 100% 0 ‐$ Sandy Circle ‐ Big Pine 40 17 0 0 0% 0Poinciana Rd ‐ Big Pine 3 1 0 0 0% 0Hibiscus Ln, Coconut Hwy ‐ Big Pine 22 2 0 0 0% 05th Ave ‐ Big Pine 7 0 0 0 100% 0 ‐$ Eden Pines ‐ Big Pine 39 13 0 2 15% 2 4,200$ Caribe St ‐ Sugarloaf 1 0 0 0 100% 0 ‐$ Prado Circle, US 1 ‐ Big Coppitt 20 16 0 0 0% 0Balido St, Cross St ‐ Stock Island 35 2 0 1 50% 1 2,100$ Keys Subtotal 173 51 0 3 6% 3 6,300$ GRAND TOTAL 871 303 4 216 71% 159 264,360$

Inaccessible Easment Update July 2020

Meter Upgrades CompletedCustomers Affected

Meters needing to be

modified

Riser Upgrades Completed

Qty of Rebates Paid

Amount of Rebates

Inaccessible Easment Update July 2020

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Key West Phase 1 Subtotal



Keys Subtotal

Riser Upgrades Completed

Board Date Original Increases Revised RemainingApproval of PO (Decreases) PO Claims Value

Vendor Name PO # Date PO Amount to PO Amount on PO of PO Description of ServiceABB Enterprise 20-0522 03/11/20 03/18/20 99,303.00 - 99,303.00$ - 99,303.00$ 10 Year ABB Circuit Breaker MaintenanceAsplundh Tree Expert Co. 20-0059 04/22/15 09/30/19 285,921.64 - 285,921.64$ 156,540.03 129,381.61$ Tree Trimming Services

Breaker Maintenance Service 20-04502/19/2020 &

3/11/20 02/19/20 89,376.00 110,094.00 199,470.00$ 179,523.00 19,947.00$ HVB Circuit Breaker MaintenanceD & V Commercial A/C 20-0008 08/12/15 09/27/19 49,000.00$ -$ 49,000.00$ 20,149.45$ 28,850.55$ Air Conditioning ServicesDion Fuels, LLC 20-0079 04/27/16 09/30/19 41,280.05$ -$ 41,280.05$ 23,005.96$ 18,274.09$ Fuel for FleetsDiversified Services 20-0053 08/12/15 09/30/19 78,672.00 2,880.00 81,552.00$ 44,488.00 37,064.00$ Janitorial Services Eaton Corporation 20-0691 06/17/20 06/18/20 224,773.00 - 224,773.00$ - 224,773.00$ Purchase & Installation of Substation Ground & Test BreakersElectric Supply 20-0611 04/08/20 04/13/20 60,948.00 - 60,948.00$ - 60,948.00$ Purchase of TransformersFirst State Bank 20-0032 08/14/13 09/30/19 50,700.00 - 50,700.00$ 19,068.22 31,631.78$ Banking Services Fleets Analytics, LLC 20-0087 01/25/17 09/30/19 10,800.00 10,800.00$ 10,800.00 -$ Fleet Tracking Management SystemG&W Electric 20-0451 02/19/20 02/19/20 173,970.00 - 173,970.00$ - 173,970.00$ Purchase of Solid Dielectric Padmount SwitchesGrays Power Supply LLC 20-0608 04/08/20 04/14/20 4,533,910.54 4,533,910.54$ - 4,533,910.54$ Transmission Line Insulator Assembly ReplacementGresco 20-0610 04/08/20 04/13/20 49,721.00 - 49,721.00$ - 49,721.00$ Purchase of TransformersInfosend, Inc. 20-0092 04/10/13 10/02/19 127,500.00 - 127,500.00$ 75,521.17 51,978.83$ Utility Bill PrintKey Iron Works 20-0086 09/28/19 10/01/19 0.01 190,928.15 190,928.16$ 190,928.15 0.01$ Underground Trenching and Conduit ServicesMeasure X 20-0075 09/09/15 09/27/19 20,356.96 - 20,356.96$ 19,245.80 1,111.16$ Customer Service TrainingNesco, LLC 20-0607 04/08/20 04/13/20 188,912.00 - 188,912.00$ - 188,912.00$ Purchase of Mini Digger Derrick MachineOne Eleven Design 20-0756 06/17/20 06/18/20 151,356.58 - 151,356.58$ - 151,356.58$ Furniture PurchaseOsmose Utilities Services, Inc. 20-0758 06/17/20 06/18/20 473,494.69 - 473,494.69$ - 473,494.69$ Pole Inspections

P&G Power Co. 19-0372 1/9/19 & 8/14/19 01/10/19 1,232,486.00 231,125.05 1,463,611.05$ 1,092,049.79 371,561.26$ Insulator ReplacementS.D. Myers, Inc. 20-0061 07/08/15 10/15/19 14,630.00$ -$ 14,630.00$ 11,195.00$ 3,435.00$ Oil TestingSet Solutions, LLC 20-0759 06/17/20 06/18/20 11,900.00$ -$ 11,900.00$ -$ 11,900.00$ Substation Safety Training Management ServicesIrby Utilities 20-0609 04/08/20 04/13/20 15,680.00$ -$ 15,680.00$ -$ 15,680.00$ Purchase of TransformersSunshine Gasoline Distributors, Inc. 20-0071 09/25/19 11/19/19 80,424.00 - 80,424.00$ 37,422.71 43,001.29$ Purchase of Ultra Low Sulfur Fuel

Williams Industrial Services 19-0862 1/9/18 & 4/24/19 06/27/19 1,012,140.00 256,185.00 1,268,325.00$ 921,183.74 347,141.26$ Purchase & Installation of Back-up GeneratorsWEG Transformers USA 20-0455 02/19/20 02/20/20 1,830,433.00 - 1,830,433.00$ - 1,830,433.00$ Purchase of Power TransformersXerox Corporation 20-0214 11/13/19 11/22/19 24,949.23$ -$ 24,949.23$ 6,334.52$ 18,614.71$ Copier Lease

G:\BIDS & CONTRACTS\UNIT PRICE PO'S\FY20\[Schedule of Unit Price Purchase Orders - Qtr Ended 6-30-20.xlsx]Schedule

Utility Board of the City of Key WestSchedule of Open Unit Price Purchase Orders (PO)

as of June 30, 2020

Utility Board of the City of Key WestQuarterly FEMA ReportAs Of June 26, 2020

Disaster Name Hurricane Irma #4337Disaster Date Sept 2017

Description of Claim Category PW Original Claim $

FEMA Revised Claim $

% Deemed Eligible

Funds Received

% Reimbursed [1] Status

B 11718 1,203,590 163,730 14% 1,173,327 717% Reimbursed

E 24183 292,923 292,888 100% 262,599 90% Reimbursed

F 39448 49,311 48,310 98% 45,894 95% Reimbursed

B 11721 2,680,226 1,328,579 50% ‐ 0% DM‐ Do Not Appeal

F 39450 366,372 563,714 154% ‐ 0% DM‐ Do Not Appeal

F 24188 5,042,930 2,523,900 50% ‐ 0% DM‐ Appeals Commenced

B 11729 64,976 ‐ 0% ‐ 0% DM‐ Appeals Commenced

B 11725 14,306,328 79,587 1% 1,032,312 1297% Unknown

F 24190 13,413,128 20,893,612 156% ‐ 0% UnknownTotal 37,419,784 25,894,319 2,514,131

DAC Potential‐ max 5% 1,870,989 1,294,716 Grand Total 39,290,773 27,189,035

[1] Claim amounts reallocated by FEMA, reimbursements paid from original claim amounts[2] Determination Memo received 1/27/20 $2,222,886 ineligible; KEYS accepted no appeal[3] Determination Memo received 1/23/20 $196,057 ineligible, KEYS accepted no appeal[4] Determination Memo received 1/23/20 $2,519,030 ineligible; KEYS appeal in process[5] Determination Memo received 1/23/20 $37,241 ineligible; KEYS appeal in process

Base Camp ‐ 14 days [2]

Materials Issued from Inventory ‐ 1st 30 days

Insured Property DamageFKEC's #35484 temp repair pole ‐ erosion effects on transmission poles at Sea Oats Beach

FKEC's #35382 transmission restoration ‐ Marathon and Tavernier [3]

Transmission Lines 3 & 4 [4]

Force Account Labor & Equipment 9/4/17‐9/10/17 [5]

Contractor & Mutual Aid Restoration ‐ 1st 30 days

Contractor, Mutual Aid, Lodging & FA Labor Restoration

‐

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Reimbursed DM‐ Do Not Appeal DM‐ Appeals Commenced Unknown

FEMA Status of PW's

Original Claim $ FEMA Revised Claim $ Funds Received

PW 11718PW 24183 PW 39448

PW 11725PW 24190

PW 24188PW 11729

PW 11721PW 39450

Prepared by: Finance Dept.Date: 3/20/20

Agenda Item Summary Sheet Meeting Date: July 8, 2020

Proposer: Lynne E. Tejeda, General Manager & CEO Department: Executive Agenda Item #: 7a

AGENDA ITEM WORDING: Approve the Minutes of the Regular Utility Board Meeting– June 17, 2020 REQUESTED ACTION: Approve the Minutes of the Regular Utility Board Meeting– June 17, 2020

MINUTES FROM THE REGULAR MEETING OF THE UTILITY BOARD OF THE CITY OF KEY WEST, FLORIDA,

HELD AT 5:00 P.M. ON WEDNESDAY, JUNE 17, 2020 KEYS ENERGY SERVICES BOARD ROOM

1001 JAMES STREET, KEY WEST, FLORIDA

This meeting was held on a virtual platform due to COVID-19 required social distancing.

Due to technical difficulties audio commenced at 5:07 p.m.

1. Pledge of Allegiance

2. Invocation

3. Mission and Vision

4. Roll Call Present: Mr. Robert Barrios, Ms. Mona Clark, Mr. Timothy Root, Mr. Steven Wells, Chairman Peter Batty.

Also present at the meeting: Lynne Tejeda, General Manager/CEO; Jack Wetzler, Finance Director/CFO; Nathan Eden, Utility Board Attorney, Nick Batty, Legal & Regulatory Services Director; Fred Culpepper, Transmission & Distribution Director; Dan Sabino, Engineering & Control Center Director, Julio Torrado, HR & Communications Director; Joe Weldon, Generation Director; and Erica Zarate, Customer Services Director.

5. Set Agenda

Chairman Peter Batty congratulated, Mr. Tim Root (Seat C) and Mr. Pat Labrada (Seat E) on their recent election to the Utility Board.

6. Informational Items: a) Power Supply Report – May 2020

b) Generation Report – April 2020 /May 2020 c) Financial and Operational Indicators – April 2020 d) Rate Comparison Report – April 2020 e) Transmission & Distribution System 2019 Reliability Report

f) Discuss Amended Budget for the Fiscal Year 2020 g) Discuss Renewal of KEYS’ Self-Insured Health Benefits Plan with Cigna

Corporation h) Discuss Renewal of KEYS Dental Benefits Plan with Connecticut General Life

Insurance Company (CGLIC) i) Discuss Renewal of KEYS Vision Benefits Plan with Connecticut General Life

Insurance Company (CGLIC) j) Discuss Renewal of KEYS Long Term Disability Insurance Benefits with

Standard Insurance

Regular Utility Board Meeting Wednesday, June 17, 2020 Page 2

k) Discuss Renewal of KEYS Basic Life, AD&D and Supplemental Life Insurance Benefits with Standard Insurance

l) COVID-19 Update

The Utility Board agreed to an additional Agenda Item to Discuss/ Approve Extending COVID-19 Rate Relief for Keys Energy Customers.

Vote: Motion carried by unanimous roll call vote (summary: Yes = 5) Yes: Mr. Robert Barrios, Ms. Mona Clark, Mr. Timothy Root, Mr. Steven Wells, Chairman Peter Batty

Board Discussion

Motion: To Sunset COVID-19 Rate Relief June 30, 2020, Moved by Mr.

Steve Wells, Seconded by Mr. Timothy Root.

Vote: Motion failed (summary: Yes = 2, No = 3) Yes: Mr. Timothy Root, Mr. Steven Wells No: Mr. Robert Barrios, Ms. Mona Clark, Chairman Peter Batty

Motion: To Extend COVID-19 Rate Relief for Keys Energy Customers through July 2020 at ten percent and August 2020, at five percent, with COVID-19 Rate Relief to sunset on August 31, 2020, Moved by Mr. Robert Barrios, Seconded by Ms. Mona Clark


m) Transmission Coordination, Short Circuit and Arc Flash Study Update

n) City of Key West/ Florida Department of Transportation Traffic Lights

o) American Public Power Association National Conference 2020 Award

7. Consent Agenda* a) Approve Minutes – Utility Board COVID-19 Response Workshop – May 4, 2020

b) Approve Minutes – Regular Utility Board Meeting – May 13, 2020 c) Approve Disbursement Report d) Approve Piggyback Unit Price Contract with Set Solutions, LLC, for Substation Safety Management Training Services e) Award Unit Price Contracts for Helicopter Assessment and Inspections During Emergency Situations Bid #28-20 f) Award Unit Price Contracts for Local Lodging during Emergency Situations –

Bid #26-20


g) Award Piggyback Unit Price Contract for Purchase of Service Building and Ralph Garcia Steam Plant Furniture

Motion: To Approve Consent Agenda, Moved by Ms. Mona Clark, Seconded by Mr. Robert Barrios.


8. Action Items

a) Approve Resolutions 2020-05 and 2020-06 to Establish a 414(h) Retirement

Pick Up Plan

Motion: To Approve Resolutions 2020-05 and 2020-06 to Establish a 414(h) Retirement Pick Up Plan with Nationwide Financial Services, Inc. and Florida Municipal Pension Trust Fund, respectively, effective July 1, 2020, Moved by Ms. Mona Clark, Seconded by Mr. Steve Wells.

Board Discussion

Vote: Motion carried by unanimous roll call vote (summary: Yes = 5) Yes: Mr. Robert Barrios, Ms. Mona Clark, Mr. Timothy Root, Mr. Steven Wells, Chairman Peter Batty. b) Approve Renewal of Federal Flood Insurance Policy with Wright National Flood

Insurance Company through Gehring Group, Inc

Motion: To Approve renewal of Federal Flood Insurance with Wright National Flood Insurance Company through Gehring Group, Inc., at a total premium of $215,515.00 for the period June 14, 2020, through June 14, 2021, Moved by Mr. Steve Wells, Seconded by Ms. Mona Clark.

Board Discussion

Vote: Motion carried by unanimous roll call vote (summary: Yes = 5) Yes: Mr. Robert Barrios, Ms. Mona Clark, Mr. Timothy Root, Mr. Steven Wells, Chairman Peter Batty.


c) Award Unit Price Contract Bid 11-20 – Pole Inspection Services

Motion: To Award a Unit Price Contract pursuant to Bid 11-20 – Pole Inspection Services to Osmose Utilities Services, Inc. in the estimated amount of $473,494.69, Moved by Mr. Steve Wells, Seconded by Mr. Timothy Root.

Board Discussion


d) Award Sole Source Contract for Purchase and installation of Substation Ground

and Test Breakers

Motion: to Award Sole Source Unit Price Contract for Purchase and installation of Substation Ground and Test Breakers in the estimated amount of $258,498.00 to Eaton Corporation, Moved by Mr. Robert Barrios, Seconded by Mr. Steve Wells.


9. Public Input / Other Business

10. Adjournment

Motion: To Adjourn the Regular Utility Board Meeting of Wednesday, June 17, 2020, at 6:01 p.m., Moved by Chairman Peter Batty.

(All documents discussed are available upon request)

APPROVE:

_______________________________ Peter Batty, Chairman

ATTEST:

_________________________________ Lynne E. Tejeda, General Manager & CEO

/ed


Proposer: Lynne E. Tejeda, General Manager & CEO Department: Executive Agenda Item #: 7b

AGENDA ITEM WORDING: Approve the Minutes of the Utility Board Strategic Planning Workshop – June 10, 2020 REQUESTED ACTION: Approve the Minutes of the Utility Board Strategic Planning Workshop – June 10, 2020

MINUTES FROM THE STRATEGIC PLANNING WORKSHOP OF THE UTILITY BOARD OF THE CITY OF KEY WEST, FLORIDA, HELD AT 10:00 A.M. ON WEDNESDAY, JUNE 10, 2020 AT THE KEYS ENERGY SERVICES BOARD ROOM LOCATED AT 1001 JAMES STREET, KEY WEST, FLORIDA

The above referenced workshop of the Utility Board of the City of Key West, Florida, convened at 9:30 P.M., on the above date and location and was called to order by Chairman Batty.

Utility Board Members Present Peter Batty, Chairman

Mona Clark, Vice Chair Robert Barrios, Member Timothy Root, Member Steven Wells, Member

Staff Present

Lynne Tejeda, General Manager & CEO Jack Wetzler, Assistant General Manager & CFO Edee Delph, Executive Assistant to GM/CEO & UB Nick Batty, Legal & Regulatory Services Director Nathan Eden, Utility Board Attorney

Mrs. Tejeda thanked the Utility Board for their attendance and stated that the purpose of the Strategic Planning Workshop is for the Board to review and discuss KEYS current Mission, Vision, Values, Goals and Strategies for 2020-2022.

Mrs. Tejeda reviewed the current Mission and Vision. The consensus of the

Board was there would be no changes at this time. Mrs. Tejeda reviewed the current Values with the Board. The consensus of the

Board was there would be no changes at this time. Mrs. Tejeda provided and reviewed Goals, Strategies and Action Plans for

2020/2022, with the Board as listed below:

• Goal #1 – Continually improve the Customer Experience regarding Reliability and Service. Mrs. Tejeda reviewed the status of Action Plans for Goal #1. The Utility Board discussed the items below and directed staff to:

Warehouse

o Upon Completion of New Warehouse, name the Warehouse after KEYS Employee, Jorge Rodriguez, who lost his life while on duty at KEYS Stock Island Facility

2

o Receive Guaranteed Maximum Price (GMP) of Warehouse prior to commencing demolition

o All agreed strongly against having public access at KEYS Stock Island Facility

Customer Service o Continue Measure X Customer Service Training as it is meeting and exceeding

the Boards expectations. • Goal #2 - Provide the lowest reasonable rates to our customers in our challenging

environment. Mrs. Tejeda reviewed the status of Action Plans for Goal #2. The Utility Board discussed and directed staff to:

Tree Giveaway

o Schedule and Budget, Tree Giveaway for Fiscal Years 2021 and 2022, due to cancelation of this year’s event due to COVID-19.

Federal Emergency Management Agency (FEMA)

o FEMA Reimbursements should go to Storm Fund and not be used till audit is complete. Funds may be used for FEMA Clawback .

o Amend Board Resolution No. 818 restating how to use Storm Funds Pension

o Target 95% funding ratio pay up to 8% more than ARC without reaching 45% o Advise KEYS employees of the Board’s commitment to fund pension

• Goal #3 - Maintain a highly effective workforce and foster a positive working

environment.

New Strategy o Develop a Diversity, Inclusion and Social Justice Plan o Issue a statement to KEYS Customers addressing KEYS stance against

injustice, peace and values on the diversity of the Communities/KEYS Customers

COVID-19 o Complete an analysis on what was learned during this time, how to handle

and make changes in the future if needed

Emergency Pay o Create Emergency Pay Guidelines allowing General Manager/CEO to determine

pay practice during a State of Emergency and bring back to Board for approval. Emergency Pay Plan is to include the duration and a not-to-exceed amount

• Goal #4 – Reduce reliance on fossil fuels

The consensus of the Board was there would be no changes to Goal #4 at

this time.

3

Mrs. Tejeda discussed the Miscellaneous Items below:

Enabling Act Mrs. Tejeda reviewed possible changes to the Enabling Act with the Board. After

discussion the consensus of the Board was to proceed with changes to increase piggyback language to five years and include additional language on the process of how to sell the Utility.

Navy Contract

Mrs. Tejeda reviewed the background and current status of the Navy easements. After discussion the consensus of the Board was to proceed with easement

acquisitions in FY 2021, and to obtain survey/appraise for each location

Advanced Metering Infrastructure (AMI) Mrs. Tejeda reviewed advantages and disadvantages of a full AMI

Implementation.

After discussion the consensus of the Board was to include AMI as part of the Fiber Committee and have the Committee monitor AMI, participate in joint action agency AMI considerations and report or recommend to the Board next steps.

After discussion the Board directed Mrs. Tejeda to make appropriate changes as

discussed during the workshop and bring back before the Board at a regularly scheduled Utility Board meeting subsequent to this workshop for status updates and approval.

(All documents provided at the meeting are available upon request) ADJOURNMENT

The Strategic Planning Workshop of June 10, 2020, was adjourned by Chairman Batty at 3:33 P.M. APPROVE: _____________________________ Peter Batty, Chairman ATTEST: __________________________________________ Lynne E. Tejeda, General Manager/CEO & Secretary /ed


Proposer: Lynne E. Tejeda, General Manager & CEO Department: Executive Agenda Item #: 7c

AGENDA ITEM WORDING: Approve the Minutes of the Utility Board Rate Workshop – June 3, 2020 REQUESTED ACTION: Approve the Minutes of the Utility Board Rate Workshop – June 3, 2020

MINUTES FROM THE RATE WORKSHOP

OF THE UTILITY BOARD OF THE CITY OF KEY WEST, FLORIDA, HELD AT 1:30 P.M. ON WEDNESDAY, JUNE 3, 2020

KEYS ENERGY SERVICES BOARD ROOM

The above referenced workshop of the Utility Board of the City of Key West,

Florida, convened at 1:30 P.M., on the above date and location and was called to order by Chairman Batty.

This meeting was held on a virtual platform due to COVID-19 required social

distancing.

Utility Board Members Present Peter Batty, Chairman

Mona Clark, Vice Chair Robert Barrios, Member Timothy Root, Member Steven Wells, Member

Staff Present

Lynne Tejeda, General Manager & CEO Jack Wetzler, Assistant General Manager & CFO Nathan Eden, Board Attorney Edee Delph, Executive Assistant to GM/CEO & UB Nick Batty, Director of Legal & Regulatory Services Julio Torrado, HR & Communications Director Dan Sabino, Engineering & Control Center Director Erica Zarate, Customers Services Director Jessie, Perloff, Accounting & Analyst Supervisor Amy Haas, Accounting & Financial Analyst Jeanette Williams, Accounting & Financial Analyst

Others Present Pat Labrada, Utility Board Candidate (Seat E) Maxwell Bernt, Director of Energy Practice for NewGen Strategies and Solutions

Mrs. Tejeda introduced Mr. Maxwell (Max) Bernt, Director Energy Practice for

NewGen Strategies and Solutions. Mrs. Tejeda said that Mr. Bernt will present the findings of the Rate Study and provide the Board with Cost of Service considerations and Rate Design Options.

Mr. Bernt reviewed a power point presentation and provided the following information:

2

Avoided Cost Credit for Solar Customers • Avoided Cost: the incremental costs to an electric utility of electric

energy or capacity or both which, but for the purchase from the qualifying facility or qualifying facilities, such utility would generate itself or purchase from another source

• Explained Difference Between: o Traditional Net Metering o Stand by Service o Buy All Sell All o Bi-Directional

• Provide Excerpts from: o Florida Administrative Code: Rule 25-6.065 (Investor Owned

Utilities) o Florida Statute: 366.91

• Discussed various Calculation Methods for Avoided Cost Credit for Solar

Customers o Proxy Unit Methodology o Peaker Unit Methodology o IRP Based Avoided Cost Methodology

• Conclusion of Avoided Cost Credit for Solar Customers: o Bi-directional metering is becoming a more common approach

to net metering and provides a reasonable compromise between net metering and buy-all sell-all

o An avoided cost credit set to be the greater of the Proxy Unit approach and the Differential Revenue Requirement approach provides an easy to understand and defend methodology with protection for impacts related to declining PPA prices on member bill credits

The Board had some discussion on the various options presented and agreed to consider the proxy unit methodology for KEYS net metering program. They specifically stated that those customers currently grandfathered in should remain grandfathered. Residential Demand Pilot

• Background o In April 2019, KEYS started a Residential Demand study to learn

more about usage patterns of residential users o Installed or used demand meters already in the field on sample

of residential customers for demand load research (364 total accounts in sample)

o Data analysis based on data from May 2019 to Present • Residential Demand Conclusion

o Average KEYS load factor is lower than FP&L load research values used for COS (21% vs 24%)

3

o KEYS unique system does not mirror FP&L or other system with

available proxy data; AMI metering is required to get a truly accurate picture of KEYS cost structures

o High energy users (over 2,500kWh/month) all pay more than COS

o High demand users (over 20kW) generally, but not always, pay more than COS

o Current rates result in large energy users subsidizing low energy users. Higher customer charges or introduction of a demand charge would decrease intraclass subsidy but would result in a rate increase to low use customers.

The Board discussed the results of the pilot program and asked staff to continue exploring AMI options that could enable demand charges to residential and small commercial customers. Cost of Service • Revenue Requirement

o Identify cost to operate utility and determine rate revenue necessary to keep KEYS financially solvent.

• Cost of Service o Determination of cost to serve different customer classes,

identifying fixed and variable cost components within each class.

• Rate Design o Use the COS results, rate strategy document and policy to guide

rate design. Rates must fully recover all costs. • Cost of Service Process

o Test Yearly Revenue Requirement o Functionalize o Classify Allocate to Customers o Allocate to Customers

• Cost of Service Revenue Requirement o Test Year revenue requirement based on 2020-2024 projected

costs and revenues from budget/financial plan adopted by Board 9/11/2019

o Revenues at current rates forecasted to meeting revenue requirements through 2024

o Cost of Service Functionalization • Power Supply Report • Transmission • Distribution • Customer • Total Cost of Service

4

Rate Design Proposal / Summary of Options • Rate Design Model Components

o Determine Design Model Components o Evaluate Customer Impacts and Implementation Strategies o Set Final Rates

• Rate Design Objective o Ensure Utility revenue recovery is sufficient of five-year planning

period o Improve recovery of fixed vs. variable related cost o Provide Options for Rate Changes

Rate Design Scenarios • Scenario 1: No Change • Scenario 2: Improve fixed cost recovery

o Option A: Revenue neutral at average usage o Option B: Revenue neutral at regional comparison usage metrics

• Scenario 3: Aggressive improvement of fixed cost recovery o Option A: Revenue neutral at class average usage o Option B: Revenue neutral at regional comparison usage metrics

Rate Design Proposal

Mr. Bernt provided several rate design options for Residential, Small Commercial, Large Power for Churches, Large Commercial and Large Commercial-Primary Customers. The Board discussed all rate design options provided in the power point and the consensus of the Board was the following:

• Residential Option – Scenario 2a • Small Commercial Option – Scenario 2a and 2b • Large Commercial Option – Scenario 1a • Large Commercial Primary Option – Scenario 1a • Large Power for Churches Option– Scenario 1a

Chairman Batty asked if graduated customer charges would assist in providing

rates closer to the cost of service in the absence of demand rates. After some discussion, it was agreed that Mr. Bernt and staff would provide the Board with more information on graduated customer charges.

Mrs. Tejeda provided the Board with a summary of today’s meeting stating the

following:

Staff will come back to the Board for conceptual approval of Solar Rates and provide the Board with additional information regarding the proxy unit methodology.

Staff will come back to the Board with an informational item to discuss a graduated customer charge for the residential class.

5

A copy of the power point presentation and all documents discussed are

available upon request.

ADJOURNMENT

The Wednesday, June 3, 2020, Rate Structure Workshop was adjourned by Chairman Batty at 3:55 P.M. APPROVE: __________________________ Peter Batty, Chairman ATTEST: __________________________________________ Lynne E. Tejeda, General Manager/CEO & Secretary /ed

UTILITY BOARD OF THE CITY OF KEY WESTAGENDA ITEM SUMMARY SHEET

MEETING DATE: July 8, 2020

FROM: Jack Wetzler, Assistant General Manager & CFO

AGENDA ITEM #: 7d

PROPOSER: Lynne Tejeda, General Manager & CEO

AGENDA ITEM WORDING: Approve Disbursement Report

BRIEF BACKGROUND:

Payments are processed under Section 11 of Florida Statute 69-1191 and in accordance with Resolution No. 679 approved October 13, 1999. Staff has processed payments from the Operation & Maintenance Fund, from the Renewal

& Replacement Fund and the Construction Fund . Check Registers and listings are attached for review.

Type of DisbursementOperation &

Maintenance Fund:Renewal &

Replacement Fund:

Check Payments 61,395.01$ -$

EFT Payments 594,129.75 11,080.13

Wire/Debit Payments 4,873,846.42 -

Voids - issue date in prev report - -

- -

Total Disbursements 5,529,371.18$ 11,080.13$

STAFF RECOMMENDATION:

Approve the Disbursement Report for the Operation & Maintenance Fund, Renewal & Replacement Fund.

DISPOSITION:

Page 1 of 6

Ref # Date Amount Payee Purpose

O&M EFT Payments3765 06/19/20 380.80 AIRGAS USA SUBSTATION MATERIALS3766 06/19/20 845.00 ALMOND TREE INN ACCOMODATIONS3767 06/19/20 53,900.00 AMERICAN SUPERCONDUCTOR CORP CONTRACTED SERVICES3768 06/19/20 1,240.00 ANIXTER INC HURRICANE ITEM3769 06/19/20 2,757.20 ASPLUNDH TREE EXPERT CO TREE TRIMMING SERVICES3770 06/19/20 906.75 BARNES ALARM SYSTEMS INC SERVICES3771 06/19/20 1,245.23 BENEFITS WORKSHOP INSURANCE PAID BY EMPLOYEE3772 06/19/20 756.00 CSC INC SERVICES3773 06/19/20 23,148.33 DELL COMPUTER CORPORATION COMPUTER EQUIPMENT3774 06/19/20 5,801.00 DIVERSIFIED SERVICES CO SERVICES3775 06/19/20 356.00 ESTEX MFG CO SAFETY3776 06/19/20 5,833.00 GEHRING GROUP EMPLOYEE & RETIREE BENEFITS3777 06/19/20 1,800.00 HARRIS COMPUTER SYSTEMS COMP SOFTWARE/MAINTENANCE3778 06/19/20 740.00 KEY WEST TRANSFER STATION DISPOSAL & TREE TRIMMING 3779 06/19/20 1,340.58 MEASURE X SERVICES3780 06/19/20 576.00 PEPSI-COLA REFRESHMENT SVCS HURRICANE ITEM3781 06/19/20 739.35 PHSI FACILITIES SERVICES3782 06/19/20 8,400.00 SET SOLUTIONS, LLC. TRAINING3783 06/19/20 1,299.90 STUART C IRBY CO HURRICANE ITEM3784 06/19/20 771.30 SUN COMMUNICATIONS EQUIPMENT3785 06/19/20 117.46 SUNSHINE STATE ONE CALL CONTRACTED SERVICES3786 06/19/20 295.00 TYNDALE CO INC SAFETY3787 06/19/20 3,015.02 WASTE MANAGEMENT OF FL KEYS FACILITIES SERVICES3788 06/19/20 93.60 WESCO DISTRIBUTION HURRICANE ITEM3789 06/19/20 1,897.84 XEROX CORP RENTAL EXPENSE3790 06/19/20 215,515.00 GEHRING GROUP FLOOD INSURANCE3791 06/26/20 676.00 ALMOND TREE INN ACCOMODATIONS3792 06/26/20 326.70 BENEFITS WORKSHOP INSURANCE3793 06/26/20 10.00 CANCER FOUND OF THE FL KEYS PAYROLL SERVICES3794 06/26/20 14,025.00 GOVQA SERVICES3795 06/26/20 2,340.49 INFOSEND INC. CONTRACTED SERVICES3796 06/26/20 495.00 KEY WEST TRANSFER STATION DISPOSAL SERVICES3797 06/26/20 546.00 KEYS ARMORED EXPRESS INC SERVICES3798 06/26/20 177,138.89 KEYS PENSION FUND PAYROLL SERVICES3799 06/26/20 4,016.09 NATHAN EDEN LEGAL SERVICES3800 06/26/20 499.50 PHSI FACILITIES SERVICES3801 06/26/20 36.50 RECHTIEN INTERNATIONAL PARTS3802 06/26/20 2,954.42 STUART C IRBY CO DIST MAT/HURRICANE ITEM3803 06/26/20 17,922.00 TYNDALE CO INC APPAREL3804 06/26/20 146.00 UNITED WAY OF FLORIDA KEYS PAYROLL SERVICES3805 06/26/20 1,543.13 VESTA MODULAR RENTAL EXPENSE3806 06/26/20 5,828.60 WESCO DISTRIBUTION DIST MAT/HURRICANE ITEM3807 07/01/20 433.80 ALFRED A HALL MEDICARE REIMBURSEMENT3808 07/01/20 406.80 ALICIA COOK MEDICARE REIMBURSEMENT3809 07/01/20 424.80 ANGELA ABREU MEDICARE REIMBURSEMENT3810 07/01/20 433.80 BARBARA ARCHER MEDICARE REIMBURSEMENT

Utility Board of the City of Key WestDisbursement Report

For the Period June 13, 2020 to July 1, 2020

Page 2 of 6

3811 07/01/20 367.80 BARBARA COLLINS MEDICARE REIMBURSEMENT3812 07/01/20 433.80 BETTY ANUEZ MEDICARE REIMBURSEMENT3813 07/01/20 433.80 BEVERLY A RAY MEDICARE REIMBURSEMENT3814 07/01/20 433.80 CARL JANSEN MEDICARE REIMBURSEMENT3815 07/01/20 487.80 CHARLES PELLICIER MEDICARE REIMBURSEMENT3816 07/01/20 433.80 DANIEL JIMENEZ MEDICARE REIMBURSEMENT3817 07/01/20 433.80 DAVE GERSTENKORN MEDICARE REIMBURSEMENT3818 07/01/20 433.50 DAVIS YATES MEDICARE REIMBURSEMENT3819 07/01/20 433.80 EDNA SANTANA MEDICARE REIMBURSEMENT3820 07/01/20 433.80 EUGENE GUTIERREZ MEDICARE REIMBURSEMENT3821 07/01/20 433.80 FRANCIS STORY MEDICARE REIMBURSEMENT3822 07/01/20 433.80 FRANK HERNANDEZ MEDICARE REIMBURSEMENT3823 07/01/20 406.80 FREDRICK E FINDLEY MEDICARE REIMBURSEMENT3824 07/01/20 385.80 FULGENCIO BLANCO MEDICARE REIMBURSEMENT3825 07/01/20 433.80 GARY PINDER MEDICARE REIMBURSEMENT3826 07/01/20 433.80 GAYLE SWOFFORD MEDICARE REIMBURSEMENT3827 07/01/20 421.80 GAYLEN FREE MEDICARE REIMBURSEMENT3828 07/01/20 433.80 GLORIA CISNEROS MEDICARE REIMBURSEMENT3829 07/01/20 433.80 HARRY L. BETHEL SR MEDICARE REIMBURSEMENT3830 07/01/20 424.80 HARRY RUSSELL MEDICARE REIMBURSEMENT3831 07/01/20 415.80 HENRY BAZO MEDICARE REIMBURSEMENT3832 07/01/20 433.80 JACQUELYN F BETHEL MEDICARE REIMBURSEMENT3833 07/01/20 412.80 JAMES MCCLENDON MEDICARE REIMBURSEMENT3834 07/01/20 433.80 JAMES MENITE MEDICARE REIMBURSEMENT3835 07/01/20 367.80 JOHN ANUEZ MEDICARE REIMBURSEMENT3836 07/01/20 433.80 JOHN AVILA MEDICARE REIMBURSEMENT3837 07/01/20 433.80 JOHN KERR MEDICARE REIMBURSEMENT3838 07/01/20 394.80 JOHN PINS MEDICARE REIMBURSEMENT3839 07/01/20 433.80 JOHN ROBINSON MEDICARE REIMBURSEMENT3840 07/01/20 373.80 JOSE AVALOS MEDICARE REIMBURSEMENT3841 07/01/20 433.80 JOSE DIAZ MEDICARE REIMBURSEMENT3842 07/01/20 433.80 JOSEPH STONE MEDICARE REIMBURSEMENT3843 07/01/20 433.80 JUDITH WELLS MEDICARE REIMBURSEMENT3844 07/01/20 421.80 JULIO LOT MEDICARE REIMBURSEMENT3845 07/01/20 867.60 LAWRENCE THOMPSON MEDICARE REIMBURSEMENT3846 07/01/20 355.80 LAZARO ZERPA MEDICARE REIMBURSEMENT3847 07/01/20 867.60 LEO CAREY MEDICARE REIMBURSEMENT3848 07/01/20 427.80 LEONARD ALONZO MEDICARE REIMBURSEMENT3849 07/01/20 452.00 LEONARD CURRY JR MEDICARE REIMBURSEMENT3850 07/01/20 427.80 LUPE TORRES MEDICARE REIMBURSEMENT3851 07/01/20 433.80 MANUEL DOMENECH MEDICARE REIMBURSEMENT3852 07/01/20 433.80 MANUEL RODRIGUEZ MEDICARE REIMBURSEMENT3853 07/01/20 433.80 MARTY ARNOLD MEDICARE REIMBURSEMENT3854 07/01/20 430.80 MICHAEL CAREY MEDICARE REIMBURSEMENT3855 07/01/20 385.80 PAUL OVERTON MEDICARE REIMBURSEMENT3856 07/01/20 433.80 PAULETTE ESQUINALDO MEDICARE REIMBURSEMENT3857 07/01/20 433.80 RALPH BETANCOURT MEDICARE REIMBURSEMENT3858 07/01/20 485.40 RAMON GOMEZ JR MEDICARE REIMBURSEMENT3859 07/01/20 867.60 RAYMOND RODRIGUEZ MEDICARE REIMBURSEMENT3860 07/01/20 433.80 RICHARD CASTILLO MEDICARE REIMBURSEMENT3861 07/01/20 433.80 ROBERT BURCHETT MEDICARE REIMBURSEMENT3862 07/01/20 430.80 ROBERT R PADRON MEDICARE REIMBURSEMENT3863 07/01/20 433.80 ROBERT SREDNICKI MEDICARE REIMBURSEMENT

Page 3 of 6

3864 07/01/20 346.50 ROBERT WICKES MEDICARE REIMBURSEMENT3865 07/01/20 403.80 ROGER REWOLINSKI MEDICARE REIMBURSEMENT3866 07/01/20 421.80 ROSEMARIE KARASH MEDICARE REIMBURSEMENT3867 07/01/20 382.80 SIDNEY KERR MEDICARE REIMBURSEMENT3868 07/01/20 433.80 STANLEY T RZAD MEDICARE REIMBURSEMENT3869 07/01/20 430.80 STEVE PEREIRA MEDICARE REIMBURSEMENT3870 07/01/20 370.80 SUSAN PINDER MEDICARE REIMBURSEMENT3871 07/01/20 433.80 SUSANA PLOWMAN MEDICARE REIMBURSEMENT3872 07/01/20 433.80 SYLVIA ADAMS MEDICARE REIMBURSEMENT3873 07/01/20 512.67 TERRY ROBERTS MEDICARE REIMBURSEMENT3874 07/01/20 355.80 THOMAS GOMEZ MEDICARE REIMBURSEMENT3875 07/01/20 433.80 VILLIERS ESQUINALDO MEDICARE REIMBURSEMENT3876 07/01/20 433.80 WAYNE DAVILA MEDICARE REIMBURSEMENT3877 07/01/20 433.80 WILLIAM SAWYER MEDICARE REIMBURSEMENT3878 07/01/20 433.80 XIOMARA OROPEZA MEDICARE REIMBURSEMENT

Total O&M EFT 594,129.75$

OM Wire Payments6082 06/13/20 13,614.49 FIRST TENNESSEE PCARD TRANSACTIONS6083 06/16/20 44,233.68 CIGNA HEALTHCARE INSURANCE6084 06/23/20 92,888.45 FLORIDA KEYS ELECTRIC COOP O&M TRANSMISSION6085 06/23/20 53,841.32 CIGNA HEALTHCARE INSURANCE6086 06/26/20 335,226.69 ADP ACH NET PR PAYROLL SERVICES6087 06/26/20 53,751.95 ADP TAXES PAYROLL TAXES6088 06/26/20 1,368.73 ADP WAGE GARNISHMENT PAYROLL SERVICES6089 06/26/20 8,232.48 FL LEAGUE OF CITIES PAYROLL SERVICES6090 06/26/20 4,181,983.40 FLORIDA MUNICIPAL POWER AGENCY TRANSMISSION & GEN EXP6091 06/26/20 166.86 FL PREPAID COLLEGE PROGRAM PAYROLL SERVICES6092 06/26/20 8,838.72 NATIONWIDE RETIREMENT PAYROLL SERVICES6093 06/26/20 2,195.00 VOYA RETIREMENT INS & ANNUITY PAYROLL SERVICES6094 06/30/20 69,524.48 CIGNA HEALTHCARE INSURANCE6095 07/01/20 7,208.48 ADP ACH NET PR PAYROLL SERVICES6096 07/01/20 771.69 ADP TAXES PAYROLL TAXES

Total OM Wires 4,873,846.42$

Disbursements from the Operations & Maintenance Fund (Expenses):176660 06/19/20 6,257.38 ADP INC PAYROLL SERVICES176661 06/19/20 203.06 ALTEC INDUSTRIES INC VEHICLES, PARTS, SERVICES176662 06/19/20 3,424.04 AT&T TELEPHONE EXPENSE176663 06/19/20 4,137.47 AT&T TELEPHONE EXPENSE176664 06/19/20 6,896.58 AT&T TELEPHONE EXPENSE176665 06/19/20 750.00 BANK OF NEW YORK CORP TRUST BANKING SERVICES176666 06/19/20 1,578.64 CARQUEST AUTO PARTS/SUPPLIES176667 06/19/20 4,442.50 DINA COYLE DBA DINA DESIGNS PRINTING SERVICES176668 06/19/20 3,716.33 FIRST STATE BANK OF FL KEYS BANKING SERVICES176669 06/19/20 1,089.20 FKAA WATER-SEWER176670 06/19/20 3,292.97 FLORIDA KEYS ELECTRIC INC CONTRACTED SERVICES176671 06/19/20 2,542.20 GRESCO CAPSTONE UTIL SUPPLY INC HURRICANE ITEM176672 06/19/20 855.00 HASKINS PLUMBING FACILITIES SERVICES176673 06/19/20 349.65 JACK WETZLER CUSTODIAN PETTY CASH REIMBURSEMENT176674 06/19/20 1,705.00 PARTNER SOFTWARE COMP SOFTWARE/MAINTENANCE

Page 4 of 6

176675 06/19/20 532.00 POSTMASTER RENTAL EXPENSE176676 06/19/20 666.11 VERIZON WIRELESS TELEPHONE EXPENSE176777 06/19/20 2,500.00 GENERAL WIRELESS OPERATIONS CUSTOMER REFUND176678 06/26/20 1,197.23 ALTEC INDUSTRIES INC VEHICLES, PARTS, SERVICES176679 06/26/20 2,000.00 CHERRY BEKAERT & HOLLAND LLP CONTRACTED SERVICES176680 06/26/20 450.64 CIGNA BEHAVIORAL HEALTH INC EMPLOYEE & RETIREE BENEFITS176681 06/26/20 199.56 CINTAS CORPORATION UNIFORM SERVICES176682 06/26/20 3,855.30 FLORIDA KEYS MEDIA ADVERTISING176683 06/26/20 2,940.23 FLORIDA MUNICIPAL POWER AGENCY SAFETY TRAINING176684 06/26/20 2,400.00 GLOBAL RENTAL CO VEHICLES176685 06/26/20 678.00 KEY WEST CITIZEN ADVERTISING176686 06/26/20 460.00 KEY WEST URGENT CARE INC. SERVICES176687 06/26/20 479.92 TRAFFIC PARTS INC DISTRIBUTION MATERIALS176688 06/26/20 1,796.00 TRI STATE UTILITY PRODUCTS PARTS, REPAIRSTotal O&M 61,395.01$

RR PAYMENTS

Total R&R -$

RR EFT Payments200 06/19/20 340.13 FLORIDA KEYS ELECTRIC COOP CONTRACTED SERVICES201 06/19/20 10,740.00 SEL ENGINEERING SERVICES, INC. CONTRACTED SERVICES

Total R&R EFT 11,080.13$

Page 5 of 6

REFO&M Check

# Vendor NameReason

Code Check Date Check Amount

Total O&M CK $0.00

REF OM WIRE Vendor NameReason


Total O&M WR $0.00

REF OM EFT Vendor NameReason


Total OM EFT 0.00Total O&M $0.00

Vendor Name

REF RR Check #Reason


Total RR CK 0.00Vendor Name

REF RR EFT #Reason


Total RR EFT 0.00TOTAL RR $0.00

Reason Code:A Cust/Vendor did not receive, lost check or staledate, stop payment search performed and ck replaced B Wrong vendor entered into system and detected when matching check with invoiceC Customer service processed a work ticket requesting check to be voided (i.e. deposit

should have been transferred and not refunded, change of name, etc.)D Wrong amount E Printed check in error, should not be paid at this timeF Vouched in errorG Research performed on stale dated checks/Abandened PropertyH Other

Utility Board of the City of Key West, FLVoided Payment List

Utility Board Meeting July 8, 2020

Page 6 of 6


Proposer: Lynne E. Tejeda, General Manager & CEO Department: HR & Communications

Agenda Item: 7e

1 of 3

AGENDA ITEM WORDING: Approve Renewal of KEYS’ Self-Insured Health Benefits Plan with Cigna Corporation REQUESTED ACTION: Motion to approve renewal of KEYS’ Self-Insured Health Benefits Plan with Cigna Corporation for the period October 1, 2020, through September 30, 2021, utilizing the current plan design and premium schedule, increasing the Specific Stop Loss Deductible from $160,000 to $175,000, and reflecting a 0% premium increase DISCUSSION: KEYS has self-insured its health and dental benefits since October 1, 2003. CIGNA has been KEYS’ health insurance carrier since October 1, 2011, when they were selected through the competitive bidding process. For the 2017-18 plan year, Gehring Group released a request for proposals for both self-funded and fully-insured medical programs and Cigna was selected over Florida Blue and United Healthcare. Due to the current demographic makeup of KEYS’ plan (especially the large retiree population) no fully-insured proposals were received and several carriers declined to quote. Gehring Group monitors the program monthly and provides feedback to staff. Gehring Group has evaluated actual claims experience under the CIGNA program for the past 12 months: During that time the average claims cost per employee has decreased by approximately 3.2% based on utilization trends and market costs. After a review of current funding and projected costs a 0% increase is needed to cover the projected program expenses for plan year 2020-21. A current highlight of the schedule of benefits is shown below: __________ Calendar Year Deductible Individual $1,000/Family $3,000 Calendar Year Out of Pocket Limit Individual $5,000/Family $10,000 Coinsurance 30% Physician Office Visit $30 Copay Specialist Office Visit $45 Copay Diagnostic Services 30% Copay after Deductible Hospital Services 30% Copay after Deductible Prescription Drug Benefits $15 Copay – Generic $30 Copay – Brand $50 Copay – Non-Preferred Brand Mail Order Prescription Drug Benefit $30 Copay – Generic $60 Copay – Brand $100 Copay – Non-Preferred Brand Specialty Drugs 20% to a maximum of $200 As required under applicable health care regulations, all copays (including prescription drug copays) are now applied to the individual’s calendar year out-of-pocket limit, which is currently set at $5,000 per individual. Additionally, Gehring Group negotiated enhancements to KEYS pharmacy rebate contract, including increases in average wholesale pricing AWP discounts for 2020-21. Based on current utilization, rebates for 2020-21 are projected to exceed $95,000, which represents an increase of over $8,500 from current rebate projections.



Agenda Item: 7e

2 of 3

Gehring Group advised that the regional market trend for insurance premiums is an increase of between 9% - 12%. Gehring Group has projected a 3.2% premium decrease based on KEYS experience over the past year and actual/projected medical claims for the plan year. No change to current premiums is required to cover plan costs and KEYS plan utilization. As in previous years, KEYS and Gehring Group will monitor the plan and report back to the Utility Board if any mid-year funding changes are necessary.

FY21 Fixed Cost Guarantee Fee Per Employee Per Month (PEPM): #

Current FY 2020

Proposed FY 2021

Annual Cost

Administrative Services & Network Fees* 276 $44.96 $44.96 $148,908 Specific & Aggregate Stop Loss Coverage 276 $165.07 $159.69 $528,165 Patient Protection Affordable Care Act (PPACA)

404 Annual fee $1,010

Annual fee $1,010

$1,010

Total Fixed Costs Annually $678,083

FY21 Premium Schedule (0% Increase) Tier # Total Employer Employee Employee Only 82 $1,034.07 $1,034.07 $0.00 Employee + Spouse 10 $1,721.73 $1,034.07 $687.66 Employee + Child(ren) 28 $1,552.85 $1,034.07 $518.77 Employee + Family 16 $2,240.48 $1,034.07 $1,206.41 Retiree w/Medicare 65 $1,034.07 $1,034.07 $0.00 Retiree w/o Medicare 64 $1,034.07 $1,034.07 $0.00 Retiree + Spouse w/o Medicare 5 $1,721.73

$1,034.07 $687.66

Retiree + Spouse w/ Medicare 8 $1,532.34

$1,034.07 $498.27

ANNUAL FUNDING 278 $4,027,211 $3,449,658 $577,554 Retiree Only 0 $1,034.07 $0.00 $1,034.07 Retiree + Spouse 1 $1,721.73 $0.00 $1,721.73 Retiree + Child(ren) 0 $1,552.85 $0.00 $1,552.85 Retiree + Family 0 $2,240.48 $0.00 $2,240.48 ANNUAL RETIREE CONTRIBUTION (NO KEYS SUBSIDY)

1 $20,661 $0 $20,661



Agenda Item: 7e

3 of 3

SELF-INSURANCE FUNDING REQUIREMENTS: On September 8, 2010, the Utility Board established the “Self Insured Health Insurance Contingency Fund”, equal to four (4) months average activity plus one-half the value of any laser imposed by the reinsurance, to ensure that self-insurance funding is available and the reserve account is not depleted. In accordance with the approved funding policy, the FY21 Self-Insured Health Insurance Contingency Fund balance, based on expected annual medical claims plus fixed fees, has been set at $1,279,523. SUPPORTS STRATEGIC PLAN: Goal #3– Maintain a highly effective workforce and foster a positive working environment.FINANCIAL IMPACT:

Expected Annual Premium: $4,027,211 based on fixed costs and total expected claims.

Budgeted: Yes (included in Proposed FY21) $1,563,514 – Regular EE (Employer) $ 124,088 – Generation (FMPA) $1,762,055 – Retiree (Employer) $3,449,658 - Total $ 577,554– EE Responsibility

Source of Funds: O&M 1-XX-926100-60 Regular EE 580961-60 560961-60 903961-60 1-22-926105-60 Retiree

Keys Energy ServicesASO & Stop Loss EvaluationEffective Date: October 1, 2020FIXED COSTSMEDICAL ADMINISTRATIONRate GuaranteeRate

ANNUAL MEDICAL ADMINISTRATION 276DENTAL ADMINISTRATIONRate GuaranteeRate

ANNUAL DENTAL ADMINISTATION 171TOTAL ADMINISTRATIVE COSTS$ Increase / (Decrease)% Increase / (Decrease)SPECIFIC STOP LOSSSpecific DeductibleCovered BenefitsContract BasisAnnual Max ReimbursementComposite Rate

ANNUAL ISL ANNUAL PREMIUM 276AGGREGATE STOP LOSSClaims CorridorCovered BenefitsContract BasisAnnual Max ReimbursementComposite Rate

ANNUAL ASL PREMIUM 276TOTAL STOP LOSS ANNUAL PREMIUM 276$ Increase / (Decrease)% Increase / (Decrease)TOTAL FIXED COSTS$ Increase / (Decrease)% Increase / (Decrease)CLAIMS COSTSEXPECTED CLAIMS COSTS

Composite Rate ANNUAL EXPECTED CLAIMS COSTS 276$ Increase / (Decrease)% Increase / (Decrease)

$ Increase / (Decrease)% Increase / (Decrease)MAXIMUM CLAIMS COST

Composite Rate ANNUAL MAXIMUM CLAIMS COSTS 276$ Increase / (Decrease)% Increase / (Decrease)

$ Increase / (Decrease)% Increase / (Decrease)

$1,229.29$4,071,420‐$129,122‐3.1%

$4,753,930‐$147,669‐3.0%

$983.43$3,257,136‐$103,298‐3.1%

$3,939,646‐$121,845‐3.0%

$25,767$528,165‐$18,547‐3.4%

$682,510‐$18,547‐2.6%

$502,397

125%Medical & Prescription

PaidUnlimited$7.78

0.0%

$175,000 Medical & Prescription

12/36Unlimited$151.69

RenewalCigna

Through 9/30/2021$44.96

$148,908

Through 9/30/2021$2.65$5,438

$154,345$0

Through 9/30/2020

CignaCurrent

$148,908$44.96

$160,000

$2.65$5,438

Through 9/30/2020

$154,345N/AN/A

$155.65Unlimited12/36

Medical & Prescription

$515,513

$9.42Unlimited

PaidMedical & Prescription

125%

N/A$546,712$31,199

N/AN/A

TOTAL MAXIMUM & FIXED COSTS $4,901,600N/AN/A

$4,200,542$1,268.28

N/AN/A

$701,057N/A

$4,061,491N/AN/A

$3,360,434$1,014.62

TOTAL EXPECTED & FIXED COSTS

N/AN/A

Keys Energy Services Employee Benefits Executive Cost Summary Effective Date: October 1, 2020

Employer Employee Total Employer Employee Total

Medical 0% IncreaseEE or Retiree 207 $1,034.07 $0.00 $0.00 $1,034.07 0.0% $1,034.07 $0.00 $0.00 $1,034.07 0.0% $0.00

EE + Sp or R + Sp w/o MC 17 $1,034.07 $687.66 $343.83 $1,721.73 39.9% $1,034.07 $687.66 $343.83 $1,721.73 39.9% $0.00

R + Sp w/ MC 8 $1,034.07 $498.27 $249.14 $1,532.34 32.5% $1,034.07 $498.27 $249.14 $1,532.34 32.5% $0.00

Employee + Child(ren) 28 $1,034.07 $518.78 $259.39 $1,552.85 33.4% $1,034.07 $518.78 $259.39 $1,552.85 33.4% $0.00

Employee + Family 16 $1,034.07 $1,206.41 $603.21 $2,240.48 53.8% $1,034.07 $1,206.41 $603.21 $2,240.48 53.8% $0.00

Annual Medical Totals 276 $3,424,840 $594,057 $4,018,897 $3,424,840 $594,057 $4,018,897

$ Increase / Decrease N/A N/A N/A $0 $0 $0

% Increase / Decrease N/A N/A N/A 0.0% 0.0% 0.0%Dental 0% IncreaseEmployee 92 $0.00 $45.62 $22.81 $45.62 100.0% $0.00 $45.62 $22.81 $45.62 100.0% $0.00

Employee + Family 78 $0.00 $107.83 $53.92 $107.83 100.0% $0.00 $107.83 $53.92 $107.83 100.0% $0.00

Annual Dental Totals 170 $0 $151,293 $151,293 $0 $151,293 $151,293


% Increase / Decrease N/A N/A N/A 0.0% 0.0% 0.0%

Annual Totals $3,424,840 $745,351 $4,170,191 $3,424,840 $745,351 $4,170,191


% Increase / Decrease N/A N/A N/A 0.0% 0.0% 0.0%

Enrollm

ent

EE Per Pay (24)

EE % Prem

EE Per Pay (24)

EE % Prem

Current Renewal

EE Per Pay Increase



Agenda Item #: 7f

AGENDA ITEM WORDING: Approve Renewal of KEYS Dental Benefits Plan with Connecticut General Life Insurance Company (CGLIC)

REQUESTED ACTION: Motion to approve renewal of KEYS Self-Funded Dental Benefits Plan with Connecticut General Life Insurance Company (CGLIC), utilizing the In-Network and Out-of-Network Benefit and Premium Schedule, for the period October 1, 2020 through September 30, 2021

DISCUSSION: The current program utilizes Connecticut General Life Insurance Company (CGLIC), also known as “Cigna,” to administer its self-funded dental plan. In 2017 Gehring Group issued a request for proposals, resulting in a determination that Cigna was the most competitive and offered appropriate network discounting. The Cigna Dental Plan allows for a participant to utilize the In-Network benefit option or the Out-of-Network benefit option with no penalties. Both the In-Network and Out-of-Network benefits have employee cost share at the same level. If a participant utilizes and In-Network provider, which is limited in Monroe County, they will enjoy greater services as the network discounts are applied.

Based on a detailed review of claims experience for the dental program, Gehring Group is recommending that KEYS continue utilizing the Cigna Dental Plan as the carrier for the October 1, 2020 through September 30, 2021 plan year. This renewal requires no change to current plan funding as current funding adequately covers the cost of the program. A summary of benefits is listed below:

• Reimbursement level under both In/Out of Network at 95% Usual & Customary Rate Schedule (UCR)

• Network discounts - lower cost share when seeing a network provider • Access to nationwide network • $2,000 Annual Maximum Benefit • Deductible: Single $50; Family $100 (Deductible is waived for preventative services) • Preventative Services paid at 100% • Basic Services paid at 80% • Major Services paid at 60% • Child Orthodontia Services $1,500 maximum benefit

The self-insured dental program is an employee paid benefit and there is no cost to KEYS.

Premium Class Current Premium

Proposed Premium Eff. 10/1/20

Employee/Retiree Only $ 45.62 $ 45.62 Employee/Retiree & Fami $107.83 $107.83

SUPPORTS STRATEGIC PLAN: Goal #3 – Maintain a highly effective workforce and foster a positive working environment. FINANCIAL IMPACT:

Total Cost: $0.00 – this is an employee expense Budgeted: N/A

Source of Funds: N/A 1-00-242201 Dental Deductions

Keys Energy Services `Voluntary Dental Insurance Renewal EvaluationEffective Date: October 1, 2020

Plan Basics In‐Network Out‐of‐Network In‐Network Out‐of‐Network

Calendar Year Maximum

Deductibles

Single $50 $50 $50 $50

Family $100 $100 $100 $100

Deductible Waived for Preventative Services Yes Yes Yes Yes

Benefits

Preventative 100% 100% 100% 100%

Basic 80% 80% 80% 80%

Major 60% 60% 60% 60%

Out‐of‐Network Reimbursement Level

Orthodontia

Child Orthodontia 50% 50% 50% 50%

Orthodontia ‐ Lifetime Max

Waiting Period

Basic Restoration

Basic Other

Major Services

Endodontic & Periodontic Level

Orthodontia

Rate GuaranteeEmployee 93

Family 81

Monthly Premium

Annual Premium

$ Increase

% Increase

Current RenewalCigna Cigna

$2,000 $2,000

$1,500 $1,500

None None

95th Percentile of R&C 95th Percentile of R&C

None None

None None

Basic Basic

$45.62 $45.62

$107.83 $107.83

None None

9/30/2019 9/30/2020

N/A 0.0%

$12,977 $12,977

$155,723 $155,723

N/A $0



Agenda Item #: 7g

AGENDA ITEM WORDING: Approve Renewal of KEYS Vision Benefits Plan with Connecticut General Life Insurance Company (CGLIC)

REQUESTED ACTION: Motion to approve renewal of KEYS Vision Benefits Plan with Connecticut General Life Insurance Company (CGLIC), utilizing the In-Network and Out-of-Network Benefit and Premium Schedule, for the period October 1, 2020 through September 30, 2021

DISCUSSION: In 2017 Gehring Group issued a competitive request for bids and received multiple vision proposals through that process. Connecticut General Life Insurance Company (CGLIC), also known as “Cigna”, was selected as the carrier Vision Plan. The Cigna Vision Plan allows for a participant to utilize the In-Network or the Out-of-Network benefit option. If a participant utilizes an In-Network provider, which is limited in Monroe County, they will enjoy greater services as the network discounts are applied. If a participant utilizes an Out-of-Network provider, they will still enjoy benefits but a lower reimbursement level. Gehring Group is recommending that Keys Energy continue the vision program with Cigna and has negotiated guaranteed rates through September 30, 2022. This is a voluntary benefit and all premiums are paid by the employee. The Proposed Premium by Class is shown in the following table and shows no increase for the new plan year:

Premium Class Current Premium

Renewal Premium

Employee & Retiree Only $ 5.89 $ 5.89 Employee + Spouse $11.79 $11.79 Employee + Child(ren) $11.91 $11.91 Employee + Family $18.77 $18.77

SUPPORTS STRATEGIC PLAN: Goal #3 – Maintain a highly effective workforce and foster a positive working environment. FINANCIAL IMPACT:

Total Cost: $0.00 – this is an employee expense

Budgeted: N/A

Source of Funds: N/A 1-00-242011

Keys Energy ServicesVoluntary Vision Insurance Renewal EvaluationEffective Date: October 1, 2020

SCHEDULE OF BENEFITSIn‐Network Non‐Network

Exam Copay $10 Up to $45

Materials Copay $25 VariesFrequencyExam Copay

Lenses

FramesBenefits Payable Copay ReimbursementEye Exam $10 $45

Single Lenses $25 $32

Bifocal Lenses $25 $55

Trifocal Lenses $25 $65

Lenticular Lenses $25 $80Lenses and FramesContact Lenses (Elective) Up to $130 Up to $105

Contact Lenses (Medically Necessary) Paid in Full Up to $210

Frames Up to $150 Up to $83

Employee 83

Employee + Spouse 30

Employee + Child(ren) 10

Employee + Family 28

Monthly Premium 151

Annual Premium

$ Increase

% Increase

Current/RenewalCigna

9/30/2022

12 months

12 months

24 months

Rate Guarantee

$11.79

$11.91

$5.89

$18.77

N/A

$1,487

$17,847

N/A



Agenda Item #:7h

Page 1 of 2

AGENDA ITEM WORDING: Approve Renewal of KEYS Basic Life, AD&D and Supplemental Life Insurance Benefits with Standard Insurance REQUESTED ACTION: Motion to approve renewal of KEYS Basic Life, AD&D and Supplemental Life Insurance Benefits with Standard Insurance, in accordance with the Proposed Rate Schedule listed below, for the period October 1, 2020 through September 30, 2021 DISCUSSION: KEYS’ current Basic Life, AD&D and Supplemental Life Insurance Benefits have guaranteed rates until 2021. The benefits are unchanged from the current plan. Gehring Group is recommending that Standard be accepted as the carrier for Basic Life, AD&D and Supplemental Life Insurance for the plan year October 1, 2020 through September 30, 2021. Basic life insurance is provided to all Utility Board members, active employees, and retirees as described below and does not include an age reduction component. Active employees can purchase supplemental life insurance, which is subject to age reduction, for themselves and their spouses and children at the rates listed below: Class 1: Active Board Members - $50,000 policy Class 2: Active Members – 1x earnings in increments of $1,000, not to exceed $200,000 Class 3: Retired Members – The life amount in force prior to retirement reduced by 50%.

PROPOSED TERM/RATE Name of Carrier Standard Insurance Rate Guarantee 12-months

Basic Term Life Rate / $1,000 $0.570 AD&D Rate / $1,000 $0.035

Supplemental Employee & Dependent Life Rate / $1,000:

0-19 $0.12 20-24 $0.12 25-29 $0.12 30-34 $0.13 35-39 $0.17 40-44 $0.25 45-49 $0.44 50-54 $0.72 55-59 $1.13 60-64 $1.76 65-69 $3.16 70-74 $5.07 75> $8.00

Children – per Family $1.10 SUPPORTS STRATEGIC PLAN: Goal #3 – Maintain a highly effective workforce and foster a positive working environment.



Agenda Item #:7h

Page 2 of 2

FINANCIAL IMPACT:

Estimated Total Cost: $108,667 Budgeted: Yes $77,101 Regular EE $31,566 Retiree

Basic Term Life: $104,207 AD&D Insurance: $ 4,460

Source of Funds: O&M 1-XX-926100-60 1-30-580961-60 1-31-560961-60 1-40-903961-60 1-50-580961-60 1-60-580961-60

Keys Energy ServicesBasic Life and AD&D Insurance EvaluationEffective Date: October 1, 2020

Current/RenewalThe Standard

Life and AD&D Benefit:

Class 1:Active Board Members $50,000

Class 2:All other active Members

1x Earnings in increments of $1,000. Not to Exceed $200,000.

Class 3:Retired Members The amount in force at retirement, reduced by 50%

Features:

Accelerated Benefit 75% to $500,000

Waiver of Premium Included

Conversion Privilege Included

Age Reductions None

Rate Guarantee Period 9/30/2021

Basic Term Life Rate / $1,000 $0.570

AD&D Rate / $1,000 $0.035

Total Rate / $1,000 $0.605

Volume $13,340,000

Monthly Premium $8,071

Annual Premium $96,848

$ Increase / Decrease N/A

% Increase / Decrease N/A

Keys Energy ServicesSupplemental Life Insurance EvaluationEffective Date: October 1, 2020

Employee Formula

Guarantee Issue

Spouse Formula

Guarantee Issue

Child Formula

Guarantee Issue

Age Reduction

Rate Guarantee

Age Banded Age Bracket Rate/$1,0000‐29 $0.12030‐34 $0.13035‐39 $0.17040‐44 $0.25045‐49 $0.44050‐54 $0.72055‐59 $1.13060‐64 $1.76065‐69 $3.16070‐74 $5.07075+ $8.000

AD&D Rate $0.035Children rate ‐ per family Children $1.100

9/30/2021

Employee and Spouse rates

Up to 50% of EE amount. Not to exceed $5,000

$5,000

65% at Age 6550% at Age 70

35% at Age 75 and up

$150,000

Up to 50% of EE amount in increments of $10,000

$20,000

Up to 3x salary in increments of $1,000. Not to exceed $200,000

Current/Renewal

The Standard



Agenda Item #: 7i

AGENDA ITEM WORDING: Approve Renewal of KEYS Long Term Disability Insurance Benefits with Standard Insurance REQUESTED ACTION: Motion to approve renewal of KEYS Long Term Disability Insurance Benefits with Standard Insurance, in accordance with the Rate Schedule below, for the period October 1, 2020 through September 30, 2021 DISCUSSION: The current Long-Term Disability program with Standard has guaranteed rates until 2021. The benefits are unchanged from the current plan. Gehring Group is recommending that the Standard rates be accepted as the carrier for Long Term Disability Insurance for the plan year October 1, 2020 through September 30, 2021. Long Term Disability insurance provides active full-time employees, who deplete all their leave, and incur a catastrophic illness, with compensation protection during that time. A summary of the long term disability benefit is listed below:

• 50% of the first $6,000 of monthly pre-disability earnings. • Maximum monthly benefit - $3,000 • Elimination period – 60 days

PROPOSED

TERM/RATE CURRENT TERM/RATE

Name of Carrier Standard Insurance Standard Insurance Rate Guarantee 12-months 24-months Rate / $1,000 $0.335 $0.335

SUPPORTS STRATEGIC PLAN: Goal #3 – Maintain a highly effective workforce and foster a positive working environment FINANCIAL IMPACT:

Estimated Annual Cost: $33,785 Budgeted: Yes - $33,785 FY 21

Source of Funds: O&M 1-22-926112-60 LTD Insurance

Keys Energy ServicesLong Term Disability Insurance EvaluationEffective Date: October 1, 2020

Current/RenewalThe Standard

Core Benefit

All Eligible Employees Full Time ‐ 35 hours each week

Elimination Period 60 days

Monthly Benefit 50% of first $6,000 of monthly pre‐disability earnings

Maximum Monthly Benefit $3,000

Minimum Monthly Benefit $100

Own Occupation Period 24 Months

Duration of Benefit SSNRA

Mental Health Limitations 24 Months

Substance Abuse Limitations 24 Months

Pre‐Existing Condition Limitations 3/12

Survivor Benefit 3x monthly benefit

Rate Guarantee 9/30/2021

Rate / $100 $0.335

Estimated Volume $704,158

Monthly Premium $2,359

Annual Premium $28,307

$ Increase / Decrease N/A

% Increase / Decrease N/A


Proposer: Lynne E. Tejeda, General Manager & CEO Department: Engineering

Agenda Item #: 7j

AGENDA ITEM WORDING: Approve Piggyback Contract with Commonwealth Associates, Inc. for Florida Keys 10-Year Transmission Planning Study REQUESTED ACTION: Motion to Approve Piggyback Contract with Commonwealth Associates, Inc., for Florida Keys 10-Year Transmission Planning Study in the total amount of $36,666.67 DISCUSSION: Under its member services agreement, FMPA has arranged for Commonwealth Associates, Inc. to perform a 10-Year Transmission Planning Study for the Florida Keys transmission system. The intent of this study is to determine planning criteria violations, if any, for the electric system serving the Florida Keys, and to identify operational changes, investments, or small or large capital projects which would address any violations. The report will identify specific solutions for all potential remedies other than large capital projects, which will require additional in-depth alternative studies. The analysis will facilitate coordination with FKEC’s adjacent Transmission Provider (Florida Power and Light) under annual transmission planning processes outlined in current FERC tariffs. FMPA selected Commonwealth to perform this analysis based on a request for qualifications. The total cost of this project is not-to-exceed $110,000.00, split evenly between FMPA, FKEC and KEYS.1 SUPPORTS STRATEGIC PLAN: Goal #1 – Continually improve the Customer Experience regarding Reliability and Service; Strategy #3.1 – Strive for a SAIDI level that exceeds the Florida Municipal SAIDI average. FINANCIAL IMPACT: Total Cost: $73,333.34 ($36,666.67 to be reimbursed by FKEC)

Budgeted: Yes

Source of Funds: 1-30-923105-50-0000 ($36,666.67) 1-00-143200-00-0000 ($36,666.67)

1 FMPA will bill KEYS 2/3 of the total cost, and KEYS will obtain reimbursement for 1/3 of the total cost from FKEC.

June 25, 2020

Mrs. Lynne Tejeda

General Manager & CEO

Keys Energy Services

1001 James St.

Key West, FL 33040

Dear Mrs. Tejeda:

RE: Florida Keys 10 Year Transmission Planning Study with Commonwealth Engineers

This letter will confirm the agreement between the Florida Municipal Power Agency (“FMPA”) and Keys

Energy Services (KEYS), regarding a 10 Year Transmission Planning Study with Commonwealth

Engineers.

FMPA has previously entered into a Master Services Agreement (the “MSA”) between FMPA and

Commonwealth Associates, Inc. (Commonwealth), dated as of October 30, 2017. KEYS, Florida Keys

Electric Co-operative, and FMPA desire to engage Commonwealth, pursuant to the MSA, all three parties

with a 10-year transmission planning study based on the detailed model of the “KEYS” system. This will

be a joint study, since a portion of the Florida Keys transmission system is FMPA’s responsibility as a

Transmission Planner, while the other portion is the responsibility of FKEC and KEYS as joint owners of

those assets.

FMPA has made arrangements with Commonwealth to conduct a 10-year transmission planning study

based on the detailed model of the “Florida Keys” system. Commonwealth will perform the tasks listed

below (described in attached scope):

• Documentation and Validation of the Detailed model of the Florida Keys Electric System (includes all transmission facilities from FPL interconnection point south)

• A detailed ten-year planning study • An informal review of planning options for increasing the resiliency of the Florida Keys Electric

System and to review the feasibility of alternate means of providing power.

In January 2020, the FMPA Board of Directors adopted “Guidelines for Development of Member

Services,” which provides for allocation of FMPA staff time costs to an individual member in the event

that significant staff time is expected to be provided to such individual member (the “Guidelines”).

However, transmission planning for ARP members, particularly annual planning studies, is a core function

for FMPA staff which is excluded from these time estimates, and therefore FMPA’s staff time associated

with this effort is not chargeable.

The project has a total, not to exceed amount of $110,000, which includes estimated expenses for the

project. Therefore, the total billed to KEYS below incudes both FKEC and KEYS portions of the project

cost.

DocuSign Envelope ID: 50F94E2D-7CB8-434C-9F7C-0A917C92F479

Letter of Agreement: Florida Keys 10 Year Transmission Planning Study with Commonwealth Engineers

June 25, 2020

Page 2

RFS-CW-2020-03 – Total billed to KEYS: $73,333.34

FMPA: $36,666.66 (pays 1/3)

KEYS: $73,333.34 (pays 2/3)

Total Project Cost: $110,000.00

FMPA will provide a copy of Commonwealth invoices for KEYS’ review in accordance with the attached

scope of work. KEYS must promptly notify FMPA of any disputed amounts so that FMPA may, in turn,

dispute such amount with Commonwealth. FMPA will pay Commonwealth’s invoices directly to

Commonwealth in accordance with the terms of the MSA, and issue an invoice to KEYS for 2/3 of that

amount in accordance with the total project costs above. Such invoice will not include an amount for FMPA

staff time. KEYS hereby agrees to pay the invoice from FMPA within 30 days of receipt.

To acknowledge your agreement with the terms of this letter, please sign below as indicated in the signature

block and return one fully executed letter to me.

Sincerely,

Ken Rutter

Chief Operating Officer

ACCEPTED AND AGREED:

Keys Energy Services

________________________________________ __________________________

Lynne Tejeda Date

General Manager & CEO

DocuSign Envelope ID: 50F94E2D-7CB8-434C-9F7C-0A917C92F479

RFS CW-2020-03 Page 1 of 11

Commonwealth Confidential

ATTACHMENT A

REQUEST FOR SERVICES CW-2020-03 Pursuant to the terms and conditions of the Master Services Agreement executed and made effective as of the 3rd day of November 2017, by and between Florida Municipal Power Agency ("FMPA") and Commonwealth Associates, Inc. ("Consultant"), FMPA hereby requests Consultant to perform the following Services: A. Project Scope of Services: FMPA desires a 10-year transmission planning study based on the detailed model of the �

agenda - keys energy services€¦ · 08/07/2020 · 2700 block harris 11 1 0 1 100% 1$ 2,100 key...

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