agenda - keys energy services · agenda utility board of the city of key west, fl regular meeting...

AGENDA UTILITY BOARD OF THE CITY OF KEY WEST, FL

REGULAR MEETING 5:00 P.M. WEDNESDAY, JANUARY 23, 2013

1. Pledge of Allegiance

2. Invocation 3. Roll Call 4. Set Agenda 5. Recognition and Presentation: a) KEYS Outstanding Employee of the 1st Quarter Wayne Davila 6. Informational Items: a) Generation Report December b) Quarterly Safety Report c) Self Insurance Health Plan Florida Statute 112.08 Filing for September 30, 2012 d) Audit Committee Report

7. Consent Agenda* a) Approve Minutes Regular Utility Board Meeting January 9, 2013 b) Approve Disbursements Report c) Request for Excused Absence for Peter Batty from the January 9, 2013 Regular Utility Board Meeting 8. Action Items: a) Approve Revisions to the Pension Investment Policy Statement b) Approve Financial Audit and Comprehensive Annual Financial Report (CAFR) for Fiscal Year Ended September 30, 2012 c) Approve the Payment to the City of Key West for the Fiscal Year Ended September 30, 2012

d) Approve Work Order #001 and Guaranteed Maximum Price Amendment For Biltmore Construction Company to act as Construction Manager at Risk for the T&D Building Construction at Stock Island and Approve Budget Amendment #13-03 e) Approve Change Order #3 to Waste Management for Waste and Recycling Disposal Fees 9. 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.

Monthly Generation Report December 2012

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

CT1 CT2 CT3 CT4 MSD1 MSD2

Unit Availability

Goal - 92%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

CT1 CT2 CT3 CT4 MSD1 MSD2

Unit First Start Reliability

Goal - 100%Goal - 100%

Generation Unit Capacity vs System Peak Load for December 2012

05

101520253035404550556065707580859095

100105110115120125130135140145

Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12

Meg

awat

ts [M

Ws]

MWs Available

CT4

CT3

CT2

CT1

MSD 2

MSD 1

Capacity

Load

Capacity

Load

Quarterly Safety Report Goal: Maintain a safe system for employeesOctober 1, 2012 Thru December 31, 2012

Informal

Formal w/ Consultant

Specialized Classes

Dept. Safety mtgs. 218

MEAG (T&D Training) 22MEAG (Underground) - T&D 138Hazardous Materials 100

KEYS Employee

100

50

100

150

200

250

300

Man

Hou

rs

MeetingandTrainingSessions

1

2

2

3

Num

berofEvents

Incidents&Accidents

Employees Contractors

Reportable Injuries 2Non Reportable Injuries 0Near Misses 0Property Damage 0Contractor's Safety Issues 0

Prepared By: Management Services Robert Barrios, Safety & RIsk Officer 1/17/2013

Informal Formalw/Consultant SpecializedClasses

HazardousMaterials 100

MEAG(Underground) T&D 138

MEAG(T&DTraining) 22

Dept.Safetymtgs. 218

218 22

138

100

0

50

100

150

200

250

300

Man

Hou

rs

MeetingandTrainingSessions

ReportableInjuries

NonReportableInjuries

NearMissesPropertyDamage

Contractor'sSafetyIssues

Contractors

KEYSEmployees 2 0 0 0 0

2 0 0 0 00

1

1

2

2

3

Num

berofEvents

Incidents&Accidents

OFFICE OF INSURANCE REGULATION

KEVIN M. MCCARTY COMMISSIONER

STEVEN OSTLUND CHIEF ACTUARY LIFE & HEALTH PRODUCT REVIEW 200 EAST GAINES STREET TALLAHASSEE, FLORIDA 32399-0328 (850) 413-3152 FAX (850) 922-3866

website: www.floir.com [email protected]

Affirmative Action / Equal Opportunity Employer

FINANCIAL SERVICES

COMMISSION

RICK SCOTT

GOVERNOR

JEFF ATWATER

CHIEF FINANCIAL OFFICER

PAM BONDI

ATTORNEY GENERAL

ADAM PUTNAM

COMMISSIONER OF

AGRICULTURE

via email: [email protected]

December 19, 2012

Ms. Alison L. Pool

Senior Consulting Actuary

Key West, City Of, Utility Board of

17757 US Highway 19n

Suite 310

Clearwater, FL 33764

Dear Ms. Pool:

The Office of Insurance Regulation has reviewed your annual report for the above referenced plan for plan year

ending 9/30/2012, including the statement as to the plans actuarial soundness. Since the liabilities and assets appear

to produce adequate positive surplus, your filing is ACCEPTED as being in compliance with the requirements of

Section 112.08, F.S. We look forward to receiving your plan year 9/30/2013 report by 12/31/2013.

Thank you for filing the required information.

Feel free to contact me if you have any questions.

Sincerely,

Steven Ostlund

Chief Actuary

[email protected]

(850) 413-5014

SO/bb

RE: KEY WEST, CITY OF, UTILITY BOARD OF

FILE LOG NUMBER: SIP 12-20249

PLEASE REFER TO THIS FILE NUMBER WHEN CORRESPONDING

Agenda Item Summary Sheet Meeting Date: January 23, 2013

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

AGENDA ITEM WORDING:

Approve the Minutes of the Regular Utility Board Meeting January 9, 2013

REQUESTED ACTION:

Approve the Minutes of the Regular Utility Board Meeting January 9, 2013

FINANCIAL IMPACT: Total Cost: N/A Budgeted: N/A

MINUTES FROM A REGULAR MEETING OF THE UTILITY BOARD OF THE CITY OF KEY WEST, FLORIDA, HELD AT 5:00 P.M. ON WEDNESDAY, JANUARY 9, 2013 AT THE WILLIAM ARNOLD SERVICE BUILDING LOCATED AT 1001 JAMES STREET, KEY WEST, FLORIDA

1. Pledge of Allegiance

2. Invocation

3. Roll Call Present: Mr. Barry Barroso, Mr. Charles Bradford, Ms. Mona Clark, Chairman Hernandez. Absent: Mr. Peter Batty. Also present at the meeting:

Lynne Tejeda, General Manager & CEO; Nathan Eden, Board Attorney; Jack Wetzler, Assistant General Manager & CFO; David Price, Transmission/ Distribution Director; Dale Finigan, Engineering/ Control Center Director; Alex Tejeda, Customer Services Director; Eddie Garcia, Generation Director; Suzanne Greager, Management Services Director and Stan Rzad, Compliance Administrator 4. Set Agenda

Motion: Motion to Add Action Item 7a - Approve Contingency Fee Agreement and Authority to Represent between the Utility Board of the City of Key West and Davis & Whitlock, P.C., Friedman, Dazzio, Zulanas & Bowling P.C., Jackson, Fikes, Hood & Brakefield and Richard M. Klitenick, P.A. Moved by Mr. Charles Bradford, Seconded by Ms. Mona Clark. Motion passed unanimously. 5. Informational Items: a) Power Supply Report December b) Rate Comparison Report November

6. Consent Agenda* a) Approve Minutes Regular Utility Board Meeting December 12, 2012 b) Approve Minutes Utility Board Smart Grid Workshop December 12, 2012 c) Approve Disbursements Report d) Declare Non Stock Items as Surplus Motion: To Approve Consent Agenda, Moved by Mr. Charles Bradford, Seconded by Mr. Barry Barroso. Motion passed unanimously.

Regular Utility Board Meeting Wednesday, January 9, 2013 Page 2 7. Action Item a) Approve Contingency Fee Agreement and Authority to Represent between the Utility Board of the City of Key West and Davis & Whitlock, P.C., Friedman, Dazzio, Zulanas & Bowling P.C., Jackson, Fikes, Hood & Brakefield and Richard M. Klitenick, P.A. Motion: To Approve Contingency Fee Agreement and Authority to Represent between the Utility Board of the City of Key West and Davis & Whitlock, P.C., Friedman, Dazzio, Zulanas & Bowling P.C., Jackson, Fikes, Hood & Brakefield and Richard M. Klitenick, P.A. Moved by Ms. Mona Clark, Seconded by Mr. Charles Bradford. Vote: Motion passed (summary: Yes = 3, No = 0, Abstain = 1). Yes: Mr. Charles Bradford, Ms. Mona Clark, Chairman Hernandez. Abstain: Mr. Barry Barroso. 8. Other Business Speaker- Neil Mellies Speaker- Harry Bethel Sr.

9. Adjournment Motion: To Adjourn the Regular Utility Board Meeting of January 9, 2013 at 5:35p.m. Moved by Ms. Mona Clark

APPROVE:

___________________________

Lou Hernandez, Chairman ATTEST: __________________________________________ Lynne E. Tejeda, General Manager/CEO & Secretary /ed

UTILITY BOARD OF THE CITY OF KEY WESTAGENDA ITEM SUMMARY SHEET

MEETING DATE: January 23, 2013

FROM: Jack Wetzler, Assistant General Manager & CFO

AGENDA ITEM #: 7b

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: Construction Fund:

Check Payments 372,515.55$ 119,427.74$ -$

Electronic Payments 796,417.25 - -

Voided Checks (65.40) -

To Be Paid List - - -

Total Disbursements 1,168,867.40$ 119,427.74$ -$

STAFF RECOMMENDATION:

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

DISPOSITION:

1 of 8

Ref # Date Amount Payee PurposeOM Wire Payments

2760 01/04/13 285,814.34 ADP ACH NET PR NET PAYROLL2761 01/04/13 66,785.48 ADP TAXES PAYROLL TAXES2762 01/04/13 570.28 ADP WAGE GARNISHMENT NET PAYROLL2763 01/04/13 4,782.40 FL LEAGUE OF CITIES DEFERRED COMPENSATION2764 01/04/13 435.79 FL PREPAID COLLEGE PROGRAM EMPLOYEE DEDUCTIONS2765 01/04/13 1,338.07 ING DEFERRED COMPENSATION DEFERRED COMPENSATION2766 01/04/13 9,891.83 NATIONWIDE RETIRE SOLUTIONS DEFERRED COMPENSATION2767 01/09/13 3,913.33 BENEFITS WORKSHOP EMPLOYEE & RETIREE BENEFITS2768 01/09/13 39,143.92 CIGNA HEALTHCARE EMPLOYEE & RETIREE BENEFITS2769 01/09/13 33,235.42 CIGNA HEALTHCARE EMPLOYEE & RETIREE BENEFITS2770 01/10/13 1,203.74 BENEFITS WORKSHOP EMPLOYEE & RETIREE BENEFITS2771 01/10/13 12,841.24 FIRST TENNESSEE P CARD PURCHASE2772 01/14/13 181,803.34 DEPARTMENT OF REVENUE SALES TAX EXPENSE2773 01/14/13 154,658.07 DEPARTMENT OF REVENUE GROSS RECEIPTS TAX

Total O&M Wires 796,417.25

Disbursements from the Renewal & Replacement Fund (Capital Projects):

Utility Board of the City of Key WestDisbursement Report

For the Periods January 4 to January 17, 2013

p ( p j )10405 01/10/13 47,905.74 TRI-STATE UTILITY PRODUCTS ELECTRICAL SUPPLIES10406 01/17/13 19,348.00 ELECTRIC SUPPLY INC LINE MATERIAL10407 01/17/13 52,174.00 WESCO DISTRIBUTING LINE MATERIAL

Total R&R 119,427.74

Disbursements from the Construction Fund-

Total CF

Disbursements from the Operations & Maintenance Fund (Expenses):143312 01/04/13 300.10 ALLAN D MERRILL CUSTOMER REFUND143313 01/04/13 17.99 ARTHUR MORRIS JR CUSTOMER REFUND143314 01/04/13 0.13 BANYAN COURT DEVELOPMENT LLC CUSTOMER REFUND143315 01/04/13 98.23 BECKY LEE HIGGINS CUSTOMER REFUND143316 01/04/13 63.18 CABANA REALTY INC CUSTOMER REFUND143317 01/04/13 2,028.62 CENTENNIAL BANK CUSTOMER REFUND143318 01/04/13 108.77 CLINTON RICE COLEMAN CUSTOMER REFUND143319 01/04/13 46.98 CONSUELO PEREZ FAHEY CUSTOMER REFUND143320 01/04/13 94.71 D SHIRLEE EZMIRLY CUSTOMER REFUND143321 01/04/13 65.00 EGLANTINA FONSECA BEIRO CUSTOMER REFUND143322 01/04/13 272.31 FIRST AMERICAN TITLE INS CO CUSTOMER REFUND143323 01/04/13 34.13 GIOVANNI CAMPANILE CUSTOMER REFUND143324 01/04/13 85.88 ISLAND HOME BUILDERS INC CUSTOMER REFUND143325 01/04/13 78.16 JASON BROCK LITTLETON CUSTOMER REFUND143326 01/04/13 29.57 JASON WALTER COLEY CUSTOMER REFUND143327 01/04/13 70.93 JEFFREY EARL ROSSER CUSTOMER REFUND143328 01/04/13 116.81 JEFFREY OWEN KUBITSKEY CUSTOMER REFUND143329 01/04/13 62.37 JONATHAN S FISHER CUSTOMER REFUND143330 01/04/13 105.39 JOSEPH V FISHER CUSTOMER REFUND

2 of 8

Ref # Date Amount Payee Purpose



143331 01/04/13 14.23 JUAN PABLO CEBALLO UBIERA CUSTOMER REFUND143332 01/04/13 39.73 KANDICE KILLMON CUSTOMER REFUND143333 01/04/13 6.10 KENDALL AUSTIN WILLIAMSON CUSTOMER REFUND143334 01/04/13 81.01 KEY NORWEST LLC CUSTOMER REFUND143335 01/04/13 87.02 KEY WEST PLAYERS CUSTOMER REFUND143336 01/04/13 99.06 KEYS ISLAND PROPERTIES LLC CUSTOMER REFUND143337 01/04/13 86.23 KEYS ISLAND PROPERTIES LLC CUSTOMER REFUND143338 01/04/13 53.46 MARC DOUGLAS DOCTORS CUSTOMER REFUND143339 01/04/13 99.50 MICHAEL BAIER CUSTOMER REFUND143340 01/04/13 272.15 MICHAEL DAMIEN KAVANAUGH CUSTOMER REFUND143341 01/04/13 7.95 MICHEAL ROBERT DEMAURO CUSTOMER REFUND143342 01/04/13 94.12 NATHAN WADE SEALS CUSTOMER REFUND143343 01/04/13 59.61 NEW STOCK ISLAND DEVELOPMENT CUSTOMER REFUND143344 01/04/13 115.32 NEW STOCK ISLAND DEVELOPMENT CUSTOMER REFUND143345 01/04/13 118.24 NEW STOCK ISLAND DEVELOPMENT CUSTOMER REFUND143346 01/04/13 108.19 NEW STOCK ISLAND DEVELOPMENT CUSTOMER REFUND143347 01/04/13 75.51 NEW STOCK ISLAND DEVELOPMENT CUSTOMER REFUND143348 01/04/13 97.26 NEW STOCK ISLAND DEVELOPMENT CUSTOMER REFUND143349 01/04/13 118.51 NEW STOCK ISLAND DEVELOPMENT CUSTOMER REFUND143350 01/04/13 118.51 NEW STOCK ISLAND DEVELOPMENT CUSTOMER REFUND143351 01/04/13 118.37 NEW STOCK ISLAND DEVELOPMENT CUSTOMER REFUND143352 01/04/13 74.36 NEW STOCK ISLAND DEVELOPMENT CUSTOMER REFUND143353 01/04/13 117.97 NEW STOCK ISLAND DEVELOPMENT CUSTOMER REFUND143354 01/04/13 393.51 NEW STOCK ISLAND DEVELOPMENT CUSTOMER REFUND143355 01/04/13 386.46 NEW STOCK ISLAND PROPERTIES CUSTOMER REFUND143356 01/04/13 545.53 NEW STOCK ISLAND PROPERTIES CUSTOMER REFUND143357 01/04/13 1,849.06 NEW STOCK ISLAND PROPERTIES CUSTOMER REFUND143358 01/04/13 100.59 RACHELLE J BAUER-HANLEY CUSTOMER REFUND143359 01/04/13 72.40 REGINA B WILLSON CUSTOMER REFUND143360 01/04/13 10,329.90 REMAX SOUTHERNMOST CUSTOMER REFUND143361 01/04/13 34.74 RUTH R WILLIAMS CUSTOMER REFUND143362 01/04/13 220.97 SO FL COUNCIL BOY SCOUTS CUSTOMER REFUND143363 01/04/13 87.04 STEPHEN ALBERT BAKOS CUSTOMER REFUND143364 01/04/13 25.96 STEPHEN LINDER CUSTOMER REFUND143365 01/04/13 72.45 THOMAS A LOCKYEAR II CUSTOMER REFUND143366 01/04/13 117.88 TIIU PEHRSON CUSTOMER REFUND143367 01/04/13 5.25 TRACY S DAVIS CUSTOMER REFUND143368 01/04/13 45.46 WILHELMUS J DE RUIJTER CUSTOMER REFUND143369 01/04/13 25.00 CANCER FOUNDN OF THE FL KEYS DONATION143370 01/04/13 281.72 COLONIAL INS PREMIUM PROCESS INSURANCE PAID BY EMPLOYEE143371 01/04/13 2,037.08 IBEW LOCAL 1990 EMPLOYEE DEDUCTIONS143372 01/04/13 126,524.74 KEYS PENSION FUND UTILITY BOARD CONTRIBUTION143373 01/04/13 119.00 UNITED WAY OF MONROE COUNTY EMPLOYEE DEDUCTIONS143374 01/04/13 299.70 ALFRED A HALL MEDICARE ADJUSTMENT143375 01/04/13 299.70 ALICIA COOK MEDICARE ADJUSTMENT143376 01/04/13 299.70 ANDRES TABAG MEDICARE ADJUSTMENT143377 01/04/13 299.70 BARBARA COLLINS MEDICARE ADJUSTMENT143378 01/04/13 299.70 BARBARA MESSER MEDICARE ADJUSTMENT143379 01/04/13 299.70 BETTY ANUEZ MEDICARE ADJUSTMENT

3 of 8




143380 01/04/13 299.70 CARL JANSEN MEDICARE ADJUSTMENT143381 01/04/13 299.70 CHARLES M FRAGA MEDICARE ADJUSTMENT143382 01/04/13 299.70 CHARLES PELLICIER MEDICARE ADJUSTMENT143383 01/04/13 299.70 DAVE GERSTENKORN MEDICARE ADJUSTMENT143384 01/04/13 359.70 DAVIS YATES MEDICARE ADJUSTMENT143385 01/04/13 245.70 EDDIE LEOPARD MEDICARE ADJUSTMENT143386 01/04/13 299.70 ELAINE CAREY MEDICARE ADJUSTMENT143387 01/04/13 329.70 ELOISE WAGONER MEDICARE ADJUSTMENT143388 01/04/13 299.70 EUGENE GUTIERREZ MEDICARE ADJUSTMENT143389 01/04/13 289.20 EVELIO ALMEDA MEDICARE ADJUSTMENT143390 01/04/13 299.70 FRANK HERNANDEZ MEDICARE ADJUSTMENT143391 01/04/13 299.70 FREDRICK FINDLEY MEDICARE ADJUSTMENT143392 01/04/13 299.70 FULGENCIO BLANCO MEDICARE ADJUSTMENT143393 01/04/13 299.70 GARY PINDER MEDICARE ADJUSTMENT143394 01/04/13 299.70 GAYLE SWOFFORD MEDICARE ADJUSTMENT143395 01/04/13 299.70 GLORIA CISNEROS MEDICARE ADJUSTMENT143396 01/04/13 299.70 HARRY L. BETHEL SR MEDICARE ADJUSTMENT143397 01/04/13 299.70 HARRY RUSSELL MEDICARE ADJUSTMENT143398 01/04/13 299.70 HENRY BAZO MEDICARE ADJUSTMENT143399 01/04/13 299.70 JAMES MENITE MEDICARE ADJUSTMENT143400 01/04/13 299.70 JAMES NOLAND MEDICARE ADJUSTMENT143401 01/04/13 299.70 JOHN ANUEZ MEDICARE ADJUSTMENT143402 01/04/13 299.70 JOHN AVILA MEDICARE ADJUSTMENT143403 01/04/13 299.70 JOHN CEREZO MEDICARE ADJUSTMENT143404 01/04/13 299.70 JOHN KAMINSKI MEDICARE ADJUSTMENT143405 01/04/13 299.70 JOHN ROBINSON MEDICARE ADJUSTMENT143406 01/04/13 299.70 JOSE AVALOS MEDICARE ADJUSTMENT143407 01/04/13 389.70 JOSE DIAZ MEDICARE ADJUSTMENT143408 01/04/13 331.50 JOSEPH STONE MEDICARE ADJUSTMENT143409 01/04/13 299.70 JUDITH WELLS MEDICARE ADJUSTMENT143410 01/04/13 299.70 JULIO LOT MEDICARE ADJUSTMENT143411 01/04/13 419.70 LAWRENCE THOMPSON MEDICARE ADJUSTMENT143412 01/04/13 299.70 LAZARO ZERPA MEDICARE ADJUSTMENT143413 01/04/13 419.70 LEO CAREY MEDICARE ADJUSTMENT143414 01/04/13 299.70 LEONARD ALONZO MEDICARE ADJUSTMENT143415 01/04/13 299.70 LEONARD CURRY JR MEDICARE ADJUSTMENT143416 01/04/13 299.70 LUPE TORRES MEDICARE ADJUSTMENT143417 01/04/13 299.70 MANUEL DOMENECH MEDICARE ADJUSTMENT143418 01/04/13 299.70 MANUEL RODRIGUEZ MEDICARE ADJUSTMENT143419 01/04/13 299.70 MARTY ARNOLD MEDICARE ADJUSTMENT143420 01/04/13 299.70 OCTAVIO ALPIZAR MEDICARE ADJUSTMENT143421 01/04/13 299.70 OSCAR FRAGA JR MEDICARE ADJUSTMENT143422 01/04/13 299.70 PAUL OVERTON MEDICARE ADJUSTMENT143423 01/04/13 299.70 PAULETTE ESQUINALDO MEDICARE ADJUSTMENT143424 01/04/13 299.70 RALPH BETANCOURT MEDICARE ADJUSTMENT143425 01/04/13 299.70 RAMON GOMEZ JR MEDICARE ADJUSTMENT143426 01/04/13 299.70 RAYMOND RODRIGUEZ MEDICARE ADJUSTMENT143427 01/04/13 299.70 ROBERT CRUZ MEDICARE ADJUSTMENT143428 01/04/13 299.70 ROBERT PADRON MEDICARE ADJUSTMENT

4 of 8




143429 01/04/13 278.70 ROBERT WALLACE MEDICARE ADJUSTMENT143430 01/04/13 299.70 SHARON RODRIGUEZ MEDICARE ADJUSTMENT143431 01/04/13 299.70 SIDNEY KERR MEDICARE ADJUSTMENT143432 01/04/13 299.70 SUSAN PINDER MEDICARE ADJUSTMENT143433 01/04/13 299.70 TERRY ROBERTS MEDICARE ADJUSTMENT143434 01/04/13 290.70 THOMAS GOMEZ MEDICARE ADJUSTMENT143435 01/04/13 299.70 THOMAS KELLY MEDICARE ADJUSTMENT143436 01/04/13 299.70 THOMAS OSACAR MEDICARE ADJUSTMENT143437 01/04/13 299.70 TOMMY J MARIUCCI MEDICARE ADJUSTMENT143438 01/04/13 299.70 VILLIERS ESQUINALDO MEDICARE ADJUSTMENT143439 01/04/13 299.70 VONSEL PARKER MEDICARE ADJUSTMENT143440 01/04/13 299.70 WILLIAM SAWYER MEDICARE ADJUSTMENT143441 01/04/13 299.70 XIOMARA OROPEZA MEDICARE ADJUSTMENT143442 01/10/13 4,783.29 ADP INC PAYROLL SERVICES143443 01/10/13 77.22 ADP SCREENING & SELECTION SVC BACKGROUND CHECK SERVICES143444 01/10/13 15,360.00 ASPLUNDH TREE EXPERT CO TREE TRIMMING SERVICES143445 01/10/13 1,631.18 AT&T CELLULAR TELEPHONE143446 01/10/13 84.00 BARNES ALARMS EQUIPMENT143447 01/10/13 17,848.22 BURNS & MCDONNELL SERVICES,143448 01/10/13 113.05 CAMDENS DADDYS TOOLS TOOLS143449 01/10/13 373.98 CIGNA BEHAVIORAL HEALTH INC INSURANCE143450 01/10/13 280.84 CINTAS CORPORATION LOC 017 UNIFORM SERVICES143451 01/10/13 1,108.72 CLEAR CHANNEL ADVERTISING143452 01/10/13 130.62 CONNEY SAFETY SUPPLIES143453 01/10/13 441.10 COOKE COMMUNICATIONS LLC ADVERTISING143454 01/10/13 1,065.71 D&V COMMERCIAL A/C AIR CONDITIONING SERVICES143455 01/10/13 3,551.00 DIVERSIFIED SERVICES CO JANITORIAL SERVICES143456 01/10/13 380.00 DOC TO YOUR DOOR CLINIC SERVICES143457 01/10/13 3,238.43 FIRST STATE BANK OF FL KEYS BANKING SERVICES143458 01/10/13 38.41 FL KEYS AQUEDUCT AUTHORITY WATER143459 01/10/13 1,713.60 GRESCO/CAPSTONE UTILITY SUPPLY INCLINE MATERIAL143460 01/10/13 85.00 HASKINS PLUMBING FACILITIES SERVICES143461 01/10/13 195.00 HD SUPPLY UTILITIES LTD EQUIPMENT143462 01/10/13 4,898.49 IRON MOUNTAIN STORAGE143463 01/10/13 134.10 JACK WETZLER CUSTODIAN PETTY CASH FUND REIMB143464 01/10/13 271.22 JUAN MENENDEZ PERSONAL COMPUTER LOAN143465 01/10/13 1,289.00 JUAN MENENDEZ REIMBURSEMENT143466 01/10/13 170.00 KEY WEST AWARDS, INC PROMOTIONAL ITEMS143467 01/10/13 160.75 KW CHEMICAL & PAPER SUPPLY SUPPLIES143468 01/10/13 495.00 KEY WEST TRANSFER STATION DISPOSAL SERVICES143469 01/10/13 61.45 LANDS END CORPORATE SALES MATERIALS143470 01/10/13 1,343.50 NAPA AUTO PARTS AUTO PARTS/SUPPLIES143471 01/10/13 339.00 NATHAN EDEN PA LEGAL SERVICES143472 01/10/13 23.16 PALMETTO FORD TRUCK SALES INC VEHICLES, PARTS, SERVICES143473 01/10/13 294.55 RIVERSIDE MANUFACTURING CO APPAREL143474 01/10/13 10,330.31 STANDARD INSURANCE COMPANY EMPLOYEE & RETIREE BENEFITS143475 01/10/13 1,860.00 STERLING PLANET GREEN POWER143476 01/10/13 175.93 STRUNKS ACE HARDWARE SUPPLIES143477 01/10/13 86.84 SUNSHINE STATE ONE CALL SERVICES

5 of 8




143478 01/10/13 14.00 T SHIRT FACTORY ADVERTISING143479 01/10/13 100.00 TECHNOLOGY IN TODAYS SOCIETY SERVICES143480 01/10/13 156.00 TERMINIX PROCESSING CENTER FACILITIES SERVICES143481 01/10/13 60.00 TOTAL TESTING SERVICES143482 01/10/13 250.95 TYNDALE CO INC APPAREL143483 01/10/13 129.00 UNITED WAY OF MONROE COUNTY EMPLOYEE DEDUCTIONS143484 01/10/13 90.00 VISITING NURSE ASSOCIATION MEDICAL SERVICES143485 01/10/13 924.00 GAMMA BROADCASTING LLC WCNK ADVERTISING143486 01/10/13 593.75 WIIS - FM 107.1 RADIO PROMOTIONAL ITEMS143487 01/10/13 1,005.00 GAMMA BROADCASTING LLC WWUS ADVERTISING143488 01/10/13 576.00 XEROX CORPORATION SERVICES143489 01/10/13 934.01 XEROX CORPORATION SUPPLIES143490 01/10/13 10,134.21 WINDSTREAM COMMUNICATIONS COMPUTER SOFTWARE/MAINT143491 01/14/13 32.24 ERLING A BLANDON GUTIERREZ CUSTOMER REISSUE143492 01/14/13 1,923.00 HELEN DWYER ELECTRICAL REBATE143493 01/14/13 795.41 SOUTHERNMOST HOMES INC MISCELLANEOUS143494 01/17/13 296.25 AIRGAS SOUTH SAFETY SUPPLIES143495 01/17/13 4,651.90 AT&T SERVICES143496 01/17/13 3,244.72 AT&T SERVICES,143497 01/17/13 807.52 BANNER TIRE OF KW INC AUTO PARTS/SUPPLIES143498 01/17/13 1,463.49 BARRETT AND COMPANY OFFICE SUPPLIES143499 01/17/13 99.37 BUCCANEER ROPE CO OF FL. INC. SAFETY SUPPLIES143500 01/17/13 60.30 CAR PARTS AUTO AUTO PARTS/SUPPLIES143501 01/17/13 54,077.00 CEKRA INC FACILITIES SERVICES143502 01/17/13 279.72 CINTAS CORPORATION LOC 017 UNIFORM SERVICES143503 01/17/13 2,324.22 COLLECTOR SOLUTIONS INC SERVICES143504 01/17/13 184.34 COMCAST CABLE SERVICES143505 01/17/13 517.12 DUNCAN FORD LINCOLN MERCURY VEHICLES143506 01/17/13 156.10 DYNA SYSTEMS SUPPLIES143507 01/17/13 90.00 EDWARD GARCIA REIMBURSEMENT143508 01/17/13 650.00 FLORIDA GARAGE DOOR PLANT EQUIPMENT143509 01/17/13 359.33 FL KEYS AQUEDUCT AUTHORITY WATER143510 01/17/13 5,000.00 GEHRING GROUP CONSULTING SERVICES143511 01/17/13 1,235.00 KEY WEST TRANSFER STATION DISPOSAL SERVICES143512 01/17/13 819.00 KEYS RADIO GROUP ADVERTISING143513 01/17/13 4,667.33 LEWIS, LONGMAN & WALKER, P.A. LEGAL SERVICES143514 01/17/13 1,645.55 LOW KEY JANITORIAL SUPPLIES143515 01/17/13 3,028.50 NATHAN EDEN LEGAL SERVICES143516 01/17/13 107.45 NEWMAN EQUIPMENT INC EQUIPMENT REPAIRS143517 01/17/13 85.43 PALMETTO FORD TRUCK SALES INC VEHICLES, PARTS, SERVICES143518 01/17/13 365.55 STRUNKS ACE HARDWARE SUPPLIES143519 01/17/13 1,400.00 SYSTEM OPERATIONS SUCCESS SERVICES143520 01/17/13 2,101.08 THYSSENKRUPP ELEVATOR SERVICES143521 01/17/13 3,792.00 TPFL, INC. ELECTRICAL SUPPLIES143522 01/17/13 1,097.13 TRAK ENGINEERING INC LABOR, SERVICE, MATERIAL143523 01/17/13 346.15 TYNDALE CO INC APPAREL143524 01/17/13 76.44 WEST MARINE/ PORT SUPPLY APPAREL143525 01/17/13 910.00 WKYZ RADIO - KEY MEDIA CO. INC. ADVERTISING143526 01/17/13 480.00 WXKW BUTLER BROADCAST ADVERTISING

6 of 8




143527 01/17/13 386.00 XEROX CORPORATION SUPPLIES143528 01/17/13 5,112.50 AMERICAN FAMILY LIFE ASSUR CO INSURANCE PAID BY EMPLOYEE143529 01/17/13 8,008.27 AT&T SERVICES143530 01/17/13 687.24 CONNEY SAFETY SUPPLIES

TOTAL O&M 372,515.55

7 of 8

REFO&M

Check # Vendor NameReason

Code Check Date Check Amount1 135297 ERLING A BLANDON GUTIERREZ A 03/14/11 32.242 143125 AMI C CAMPBELL C 12/14/12 33.163456789

1011121314151617181920

Total O&M 65.40

REFCF Check

# Vendor NameReason

Code Check Date Check Amount1

Total for CF $0.00

REFWIRE

Check # Vendor NameReason

Code Check Date Check Amount12

Total for WIRE $0.00TOTAL FOR O&M, CF and WIRE $65.40

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 checksH Other

Utility Board Meeting 01/23/13Voided Payment List

Utility Board of the City of Key West, FL

8 of 8


Proposer: Peter Batty, Board Member Department: Managers Agenda Item #: 7c


Request for Excused Absence for Peter Batty from the January 9, 2013 Regular Utility Board Meeting.

REQUESTED ACTION:

Approve Request for Excused Absence for Peter Batty from the January 9, 2013 Regular Utility Board Meeting.

FINANCIAL IMPACT: Total Cost: N/A Budgeted: N/A


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

Agenda Item #: 8a


Approve Revisions to the Pension Investment Policy Statement

REQUESTED ACTION:

Motion to Approve Revisions to the Pension Investment Policy Statement

DISCUSSION:

During the Regular Pension Board Meeting held on December 13, 2012, The Board of Trustees approved revisions to the Pension Investment Policy Statement per the attached Pension Investment Policy Statement. In order to follow the recommended Delineation of Duties, staff recommends that the Utility Board approve the Revisions to the Pension Investment Policy Statement.

The Changes are as follows:

Page 2, II Target Allocations, Asset Class, Broad Market Fixed Income, Target from 25% to 20%; Range from 20%-40% to 20%-30%.

Page 2, II Target Allocations, added Asset Class Global Bonds, Target 5%; Range 0%-10%; Benchmark Index - Citigroup World Bond.

Page 2, III Investment Performance Objectives, A. Total Portfolio Performance, 1. Barclays Capital US Intermediate Aggregate Bond Index, from 25% to 20%; added Citigroup World Bond Index - 5%.

FINANCIAL IMPACT: Total Cost: N/A Budgeted: Source of Funds:

ADOPTED December 2012 Page 1

Formatted: Not Highlight

RETIREMENT SYSTEM FOR GENERAL EMPLOYEES OF THE

UTILITY BOARD OF THE CITY OF KEY WEST, FLORIDA

Investment Policy Statement

I. PURPOSE OF INVESTMENT POLICY STATEMENT

The Pension Board of Trustees (the Board) maintains that an important determinant of future investment returns is the expression and periodic review of the Retirement System for General Employees of the Utility Board of the City of Key West, Florida (the Plan) investment objectives. To that end, the Board has adopted this statement of Investment Policy and directs that it apply to all assets under their control.

In fulfilling their fiduciary responsibility, the Board recognizes that the Plan is an essential vehicle for providing income benefits to retired participants or their beneficiaries. The Board also recognizes that the obligations of the Plan are long-term and that investment policy should be made with a view toward performance and return over a number of years. The general investment objective is to obtain a reasonable total rate of return - defined as interest and dividend income plus realized and unrealized capital gains or losses - commensurate with the Prudent Investor Rule and any other applicable ordinances and statutes.

Reasonable consistency of return and protection of assets against the inroads of inflation are paramount. However, interest rate fluctuations and volatility of securities markets make it necessary to judge results within the context of several years rather than over short periods of five years or less.

The Board will employ investment professionals to oversee and invest the assets of the Plan. Within the parameters allowed in this document and their agreements with the Board, the investment management professionals shall have investment discretion over their mandates, including security selection, sector weightings and investment style.

The Board, in performing their investment duties, shall comply with the fiduciary standards set forth in Employee Retirement Income Security Act of 1974 (ERISA) at 29 U.S.C. s. 1104(a) (1) (A) (C). In case of conflict with other provisions of law authorizing investments, the investment and fiduciary standards set forth in this section shall prevail.



II. TARGET ALLOCATIONS

In order to provide for a diversified portfolio, the Board has engaged investment professional(s) to manage and administer the fund. The Investment Managers are responsible for the assets and allocation of their mandate only and may be provided an addendum to this policy with their specific performance objectives and investment criteria. The Board has established the following asset allocation targets for the total fund:

Asset Class Target Range Benchmark Index Domestic Equity 45% 40% - 65% Russell 3000 International Equity 15% 5% - 20% MSCI-ACW ex. US Broad Market Fixed Income 2025% 20% - 3040% Barclays Intermediate

Aggregate TIPS* 5% 0% - 10% Barclays TIPS Global Bonds* 5% 0%-10% Citigroup World Bond Real Estate* 10% 0% - 15% NCREIF NFI-ODCE

*Benchmark will default to broad market fixed income if these portfolios are not funded. Targets and ranges above are based on market value of total Plan assets.

The Investment Consultant will monitor the aggregate asset allocation of the portfolio, and will rebalance to the target asset allocation based on market conditions. If at the end of any calendar quarter, the allocation of an asset class falls outside of its allowable range, barring extenuating circumstances such as pending cash flows or allocation levels viewed as temporary, the asset allocation will be rebalanced into the allowable range. To the extent possible, contributions and withdrawals from the portfolio will be executed proportionally based on the most current market values available and with reasonable notice provided to the Investment Managers. The Board does not intend to exercise short-term changes to the target allocation.

III. INVESTMENT PERFORMANCE OBJECTIVES

The following performance measures will be used as objective criteria for evaluating the effectiveness of the Investment Managers.

A. Total Portfolio Performance

1. The performance of the total portfolio will be measured for rolling three (3) and five (5)

year periods. The performance of the portfolio will be compared to the return of the policy indexes comprised of 45% Russell 3000 Index, 15% MSCI-All Country World x U.S. Index, 2025% Barclays Capital U.S. Intermediate Aggregate Bond Index, 5% Barclays TIPS Index, 5% Citigroup World Bond Index and 10% NCREIF Fund Index Open End Diversified Core Equity (NFI-ODCE) Index.

2. On a relative basis, it is expected that the total portfolio performance will rank in the top

40th percentile of the appropriate peer universe over three (3) and five (5) year time periods.



3. On an absolute basis, the objective is that the return of the total portfolio will equal or

exceed the actuarial earnings assumption (8%), and provide inflation protection by meeting Consumer Price Index plus 3%. This absolute return objective will be evaluated in the context of the prevailing market conditions.

B. Equity Performance

The combined equity portion of the portfolio, defined as common stocks and convertible bonds, is expected to perform at a rate at least equal to the 75% Russell 3000 Index and 25% MSCI-All Country World x U.S. Index. Individual components of the equity portfolio will be compared to the specific benchmarks defined in each Investment Manager addendum. All portfolios are expected to rank in the top 40th

percentile of the appropriate peer universe over three (3) and five (5) year time periods.

C. Fixed Income Performance

The overall objective of the fixed income portion of the portfolio is to add stability and liquidity to the total portfolio. The fixed income portion of the portfolio is expected to perform at a rate at least equal to the Barclays Capital U.S. Intermediate Aggregate Bond Index. All portfolios are expected to rank in the top 40th


D. Treasury Inflation Protection Security (TIPS) Performance

The overall objective of the TIPS portion of the portfolio, if utilized, is to provide inflation protection while adding stability to the total portfolio. If TIPS are utilized the strategy is expected to approximate the structure and performance of the Barclays Capital U.S Treasury TIPS Index.

E. Real Estate Performance

The overall objective of the real estate portion of the portfolio, if utilized, is to add diversification and another stable income stream to the total fund. The real estate portion of the portfolio, defined as core, open ended private real estate, is expected to perform at a rate at least equal to the NCREIF NFI-ODCE Index and rank in the top 40th


F. Alternative and Other Asset Performance

The overall objective of the alternative and/or other asset portion of the portfolio, if utilized, is to reduce the overall volatility of the portfolio and enhance returns. This portion of the portfolio will be measured against an appropriate benchmark, which will be outlined in the Investment Manager addendum at the time of investment.



IV. INVESTMENT GUIDELINES

A. Authorized Investments The fund shall be invested and reinvested in such securities or real or personal property, wherever situated and of whatsoever kind, as may be approved by the Trustees, including but not limited to stocks, common or preferred, bonds and mortgages (including those of the Utility Board of the City of Key West, Florida) and other evidences of indebtedness or ownership, although the same may not be of the character permitted for investment by fiduciaries under the laws of the State of Florida. The Trustees, through their agents or otherwise, may retain in cash and keep unproductive of income such amount of the fund as they may deem advisable, having due regard for the cash requirements of the System. In making investments and reinvestments, as authorized by the provisions of the System, the Trustees or such person, persons, agency or entity acting pursuant to authority granted by the Trustee shall exercise the judgment and care under the circumstances then prevailing which men of ordinary prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their own funds, considering the probable income there from as well as the probable safety of their capital, subject to the following guidelines and limitations:

1. Equities:

a. Must be traded on a national exchange or electronic network; and b. Not more than 5% of the Plans assets, at the time of purchase, shall be invested in

the common stock, capital stock or convertible stock of any one issuing company, nor shall the aggregate investment in any one issuing company exceed 5% of the outstanding capital stock of the company; and

2. Fixed Income:

a. Eighty (80%) percent fixed income investments shall have a minimum rating of

investment grade or higher as reported by a major credit rating service; and

b. The value of bonds issued by any single corporation shall not exceed 3% of the total fund; and

3. Money Market:

a. The money market fund or STIF options provided by the Plans Custodian; and b. Have a minimum rating of A1/P1, or its equivalent, by a major credit rating

service.

4. Pooled Funds:

Investments made by the Board may include pooled funds. For purposes of this policy pooled funds may include, but are not limited to, mutual funds, commingled funds,



exchange-traded funds, limited partnerships and private equity. Pooled funds may be governed by separate documents which may include investments not expressly permitted in this Investment Policy Statement. In the event of investment by the Plan into a pooled fund, the prospectus or governing policy of that pooled fund, as updated from time to time, shall be treated as an addendum to this Investment Policy Statement. The Investment Consultant shall periodically review with the Board any material changes in the prospectus or governing policy of a pooled fund.

B. Trading Parameters

When feasible and appropriate, all securities shall be competitively bid. Except as otherwise required by law, the most economically advantageous bid shall be selected. Commissions paid for purchase of securities must meet the prevailing best-execution rates. The responsibility of monitoring best price and execution of trades placed by each Investment Manager on behalf of the Plan will be governed by the Portfolio Management Agreement between the Plan and the Investment Managers.

C. Limitations

1. Investments in corporate common stock and convertible bonds shall not exceed seventy-five percent (75%) of the market value of Plan assets.

2. Foreign securities (regardless of asset class) shall not exceed twenty-five percent (25%)

of the market value of Plan assets. For the purposes of this Investment Policy Statement, foreign securities are defined as bonds, stocks, or other evidences of indebtedness issued or guaranteed by a company that is not organized under the laws of the United States, any state or organized territory of the United States, or the District of Columbia.

3. All equity and fixed income securities must be readily marketable. Commingled funds

must be independently appraised at least annually.

D. Absolute Restrictions

No investments shall be permitted in;

1. Any investment not specifically allowed as part of this policy.

2. Illiquid investments, as described in Chapter 215.47, Florida Statutes.



V. COMMUNICATIONS

A. On a monthly basis, the Custodian shall supply an accounting statement that will include a summary of all receipts and disbursements and the cost and the market value of all assets.

B. On a quarterly basis, the Investment Managers shall provide a written report affirming

compliance with the security restrictions of Section IV (as well as any provisions outlined in the Investment Managers addendum). In addition, the Investment Managers shall deliver a report each quarter detailing the Plan's performance, forecast of the market and economy, portfolio analysis and current assets of the Plan. Written reports shall be delivered to the Board within 30 days of the end of the quarter. A copy of the written report shall be submitted to the person designated by the City, and shall be available for public inspection. The Investment Managers will provide immediate written and telephone notice to the Board of any significant market related or non-market related event, specifically including, but not limited to, any deviation from the standards set forth in Section IV or their Investment Manager addendum.

C. If an Investment Manager owns investments, that complied with section IV at the time of

purchase, which subsequently exceed the applicable limit or do not satisfy the applicable investment standard, such excess or noncompliant investments may be continued until it is economically feasible to dispose of such investment in accordance with the prudent man standard of care, but no additional investment may be made unless authorized by law or ordinance. In addition, an action plan outlining the investment hold or sell strategy shall be provided to the Board immediately.

D. The Investment Consultant shall evaluate and report on a quarterly basis the rate of return

net of investment fees and relative performance of the Plan.

E. The Board will meet periodically to review the Investment Consultant performance report. The Board will meet with the Investment Manager and appropriate outside consultants to discuss performance results, economic outlook, investment strategy and tactics and other pertinent matters affecting the Plan on a periodic basis.

F. At least annually, the Board shall provide the Investment Managers with projected

disbursement needs of the Plan so that the investment portfolio can be structured in such a manner as to provide sufficient liquidity to pay obligations as they come due. To this end the Investment Managers should, to the extent possible, attempt to match investment maturities with known cash needs and anticipated cash-flow requirements.

VI. COMPLIANCE

A. It is the direction of the Board that the Plan assets are held by a third party Custodian, and that all securities purchased by, and all collateral obtained by the Plan shall be properly designated as Plan assets. No withdrawal of assets, in whole or in part, shall be made from safekeeping except by an authorized member of the Board or their designee. Securities transactions between a broker-dealer and the Custodian involving purchase or sale of



securities by transfer of money or securities must be made on a "delivery vs. payment" basis to insure that the Custodian will have the security or money in hand at conclusion of the transaction.

B. The investment policy shall require all approved institutions and dealers transacting

repurchase agreements to execute and perform as stated in the Master Repurchase Agreement. All repurchase agreement transactions shall adhere to the requirements of the Master Repurchase Agreement.

C. At the direction of the Board operations of the Plan shall be reviewed by independent

certified public accountants as part of any financial audit periodically required. Compliance with the Boards internal controls shall be verified. These controls have been designed to prevent losses of assets that might arise from fraud, error, or misrepresentation by third parties or imprudent actions by the Board or employees of the Plan sponsor, to the extent possible.

D. Each member of the Board shall participate in a continuing education program relating to

investments and the Boards responsibilities to the Plan. It is suggested that this education process begin during each Board members first term.

E. With each actuarial valuation, the Board shall determine the total expected annual rate of

return for the current year, for each of the next several years and for the long term thereafter. This determination shall be filed promptly with the Department of Management Services, the Plans sponsor and the consulting actuary.

F. The proxy votes must be exercised for the exclusive benefit of the participants of the Plan.

Each Investment Manager shall provide the Board with a copy of their proxy voting policy for approval. On a regular basis, at least annually, each manager shall report a record of their proxy vote.

VII. CRITERIA FOR INVESTMENT MANAGER REVIEW

The Board wishes to adopt standards by which judgments of the ongoing performance of an Investment Manager may be made. If, at any time, any three (3) of the following is breached, the Investment Manager may be warned of the Board's serious concern for the Plan's continued safety and performance. If any five (5) of these are violated the Investment Consultant may recommend an Investment Manager evaluation for that mandate.

Four (4) consecutive quarters of relative under-performance versus the benchmark. Three (3) year trailing return below the top 40th

Five (5) year trailing return below the top 40

percentile within the appropriate peer group and under performance versus the benchmark.

th

Three (3) year downside volatility greater than the index (greater than 100), as measured by down market capture ratio.

percentile and under performance versus the benchmark.



Five (5) year downside volatility greater than the index (greater than 100), as measured by down market capture ratio.

Style consistency or purity drift from the mandate. Management turnover in portfolio team or senior management. Investment process change, including varying the index or benchmark. Failure to adhere to the Investment Policy Statement, Investment Manager Addendum

or other compliance issues.

Investigation of the firm by the Securities and Exchange Commission (SEC) or other regulatory agency.

Significant asset flows into or out of the company or strategy. Merger or sale of firm. Fee increases outside of the competitive range. Servicing issues key personnel stop servicing the account without proper

notification.

Failure to attain a 60% vote of confidence by the Board.

Nothing in this section shall limit or diminish the Boards right to terminate the Investment Manager at any time for any reason.

VIII. APPLICABLE CITY ORDINANCES

If at any time this document is found to be in conflict with the City Ordinances or applicable Florida Statutes, the Ordinances and Statutes shall prevail.

IX. REVIEW AND AMENDMENTS

It is the Boards intention to review this document at least annually subsequent to the actuarial report and to amend this statement to reflect any changes in philosophy, objectives, or guidelines. In this regard, the Investment Manager's interest in consistency in these matters is recognized and will be taken into account when changes are being considered. If, at any time, the Investment Manager feels that the specific objectives defined herein cannot be met, or the guidelines constrict performance, the Board should be notified in writing. By initialing and continuing acceptance of this Investment Policy Statement, the Investment Managers concur with the provisions of this document. By signing this document, the Chairman attests that this policy has been recommended by the Investment Consultant, reviewed by the Plans legal counsel for compliance with applicable law, and approved by the Board.



X. FILING OF THE INVESTMENT POLICY

Upon adoption by the Board, the Investment Policy Statement shall be promptly filed with the Florida Department of Management Services, the City, and the Plans actuary. The effective date of the Investment Policy Statement shall be the 31

days following the filing date with the City.

RETIREMENT SYSTEM FOR GENERAL EMPLOYEES OF THE UTILITY BOARD OF THE CITY OF KEY WEST

_______________________ __________ Chairman, Board of Trustees Date


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

Agenda Item #: 8b


Approve Financial Audit and Comprehensive Annual Financial Report (CAFR) for Fiscal Year Ended September 30, 2012.

REQUESTED ACTION:

Motion to approve Financial Audit and Comprehensive Annual Financial Report (CAFR) for Fiscal Year Ended September 30, 2012.

DISCUSSION:

Per Bond Resolution #532, Article V, Covenants, Section 5.01 (H), Annual Audit, the Utility Board shall also, at least once a year, within one hundred and eight (180) days after the close of the fiscal year, cause the financial statements of the Board to be audited by the accountant. A copy of such annual audit shall regularly be furnished to any Credit Facility and to any Registered Owner of any Bonds. Additional details for this requirement are provided in said Bond Resolution.

The Audit Committee reviewed the draft Audit and CAFR and presented a Committee Report during this meeting.

FINANCIAL IMPACT: Total Cost: NA Budgeted: Source of Funds:

Comprehensive Annual Financial Report

Utility Board of the

City of Key West, Florida

For the Fiscal Year Ended September 30, 2012

UTILITY BOARD OF THE CITY OF KEY WEST, FLORIDA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2012

JACK WETZLER LYNNE E. TEJEDA ASSISTANT GENERAL MANAGER & GENERAL MANAGER & CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER PEGGY WALLS CINDY McVEIGH ASSISTANT FINANCE DIRECTOR SUPERVISOR of ACCOUNTING

1

PageINTRODUCTORY SECTION

Letter of Transmittal iGFOA Certificate of Achievement for Excellence in Financial Reporting ixOfficials and Employees x

FINANCIAL SECTIONIndependent Auditor's Report 1Management's Discussion and Analysis 3Financial Statements:

Balance Sheet 11Statement of Revenues, Expenses and Changes in Net Assets 13Statements of Cash Flow 14Notes to the Financial Statements 16

Required Supplementary Information 35Schedule of Revenues Earned 36Schedule of Revenues and Expenditures - Budget to Actual 37

STATISTICAL SECTIONStatistical Section Description 38Financial Trends - Condensed Balance Sheets - Last 10 Fiscal Years 39Financial Trends - Changes in Net Assets - Last 10 Fiscal Years 41Financial Trends - Net Assets by Component - Last 10 Fiscal Years 44Revenue Capacity - Revenues by Type of Customer - Last 10 Fiscal Years 45Revenue Capacity - Actual Number of Customers Billed (September) - Last 10 Fiscal Years 46Revenue Capacity - kWh Sales by Type of Customer - Last 10 Fiscal Years 47Revenue Capacity - Rate Analysis - Residential & Commercial - Last 10 Fiscal Years 48Debt Capacity - Computation of Debt Service Coverage - Last 10 Fiscal Years 49Debt Capacity - Principal Payments Payable for all Debt Issues Through 2032 50Demographic and Economic Information - Last 10 Fiscal Years 51Demographic and Economic Information - Monroe County Major Employers 52Operating Information - Operating Expenses - Last 10 Fiscal Years 53Operating Information - Energy Sources - Last 10 Fiscal Years 54Operating Information - Generating Capacity - Last 10 Fiscal Years 55Operating Information - Employee Information - Last 10 Fiscal Years 56Operating Information - Ten Highest Consumption Locations 57

COMPLIANCE SECTIONReport on Internal Control Over Financial Reporting and on Compliance and Other MattersBased on an Audit of Financial Statements Performed in Accordance with GovernmentAuditing Standards 58

UTILITY BOARD OF THE CITY OF KEY WEST

Comprehensive Annual Financial Report

For the Fiscal Year Ended September 30, 2012

TABLE OF CONTENTS

i

January 23, 2013 To the Chairman and Members of the Utility Board of the City of Key West, Florida The Comprehensive Annual Financial Report (CAFR) of the Utility Board of the City of Key West, Florida (the Board) d/b/a Keys Energy Services (KEYS), for the Fiscal Year ended September 30, 2012, is submitted herewith, pursuant to and by the authority of Chapter 69-1191, Laws of Florida, as amended, and Resolution No. 532 of the Utility Board, Article V, Section 5.01 (H), adopted November 13, 1985, as amended and supplemented. The CAFR was compiled by the staff of the Finance Department with the close cooperation of our independent auditor and represents the official report of the Utilitys financial operations and conditions to the citizens, the Board, management personnel, rating agencies, bond holders and other interested parties. Responsibility for both the accuracy of the presented data as well as the completeness and fairness of the presentation, including all disclosures, rests with the Board. We believe that the data as presented is accurate in all material respects, that the data is presented in a manner designed to fairly set forth the financial position and results of operations of the Board and that all disclosures necessary to enable the reader to gain maximum understanding of the Boards financial affairs have been included. Resolution No. 532 of the Board, Article V, Section 5.01 (H), adopted November 13, 1985, as amended and supplemented requires an annual audit by independent certified public accountants. For Fiscal Years 2012 and 2011 the Utility Board selected the accounting firm of Oropeza & Parks, CPAs. The auditors report on the financial statements is included in the Financial Section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Managements Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Boards MD&A can be found immediately following the report of the independent auditors. The Board realizes its role, as a public power entity, has never been more important. The present organization was created by provisions of Chapter 69-1191, Laws of Florida (1969), as amended, to manage, operate, and maintain the electric utility serving the citizens of the City of Key West and the Lower Florida Keys. The Board consists of five members who are elected by the registered voters of the City of Key West every four years.

(305) 295-1000 1001 James Street

PO Box 6100 Key West, FL 33040-6100

www.KeysEnergy.com

U T I L I T Y B O A R D O F T H E C I T Y O F K E Y W E S T

ii

Reliable Public Power Provider In FY12, KEYS was one of 176 of the nations more than 2,000 public power utilities to earn Reliable Public Power Provider (RP3) recognition from the American Public Power Association (APPA) for providing consumers with the highest degree of reliable and safe electric service. The RP3 recognizes public power utilities that demonstrate proficiency in four key disciplines: reliability, safety, training, and system improvement. Criteria within each category are based on sound business practices and represent a utility-wide commitment to safe and reliable delivery of electricity. This is the seventh year that the RP3 award had been offered. APPA is the national organization representing more than 2,000 not-for-profit, community-and state-owned electric utilities. It is located in Washington, D.C. KEYS customers also enjoyed enhanced reliability and efficiency thanks to recently completed electrical improvements. The major improvement the installation of static var compensation unitscompleted on May 18th was the first phase of a two-year project to enhance the unique electric system that connects the Florida Keys to the mainland. Benefits include: Increasing access to reliable, affordable electricity imported from the mainland; modernizing electric system technology; reducing the need to run local power generation; and enhancing reliability of electric service. Phase one of the project was completed on time and under budget, and included state-of-the art equipment additions at KEYS Big Pine Key and Stock Island substations to monitor and control voltage. Phase two includes upgrades to Florida Keys Electric Cooperatives (FKEC) Islamorada substation. This project is a joint effort between KEYS, FKEC, and FMPA, the wholesale power provider for KEYS. All three utilities are sharing the cost of the $12-million project. Green Champions In FY12 KEYS dedicated a 44.8 kilowatt (kW) solar photovoltaic system at its Stock Island Generation Facility as well as a Wind Demonstration Project at its Cudjoe Key Electrical Substation on U.S. Highway 1 (MM 23, Oceanside). The projects were funded in part by a Clean Energy Grant KEYS was awarded from the State of Florida totaling $770,000. The grant was made possible by the American Recovery and Reinvestment Act and the United States Department of Energy. For the construction of the solar array system which cost $241,056, KEYS worked with OneWorld Sustainable, Inc. who furnished and installed the system through a competitive bid process. Originally, a 34 kW was slated to be installed, however, the bids came in under the $265,000 grant budget and KEYS was able to obtain approval from the Florida Energy and Climate Commission for increasing the size of the array in order to use more of the allocated funds. The array is installed on the roof of KEYS purchasing section which overlooks Safe Harbor in Stock Island. Energy generated from the system will help offset the energy used within the purchasing section offices. The system is grid tied and does not have a battery back-up for energy storage. For the construction of the Wind Demonstration Project which cost $62,600, KEYS worked with Florida Keys-based Sea, Air, Land Technologies (SALT) who furnished and installed the turbines through a competitive bid process. Originally one turbine was going to be installed at KEYS Stock Island Generation Facility and the other at the Cudjoe Key Electrical Substation. However, in order to determine if varying heights affected output, both were installed at the Cudjoe site so that all other factors could be considered equal. One turbine is installed at a height of 57-feet, with the total height of the installation being 63-feet from the ground to the tip of the highest blade. The second turbine is installed at a height of 30-feet, with the total height of the installation being 35-feet from the ground to the tip of the highest blade. The diameter of each turbine from blade tip to blade tip is 12-feet. The maximum output for each turbine is 2,400 watts and can be achieved at a wind speed of 29 miles-per-hour (mph). The minimum wind speed required for the turbines to rotate is eight mph, below this the turbines will not rotate.

iii

Energy generated from the turbines will help offset the energy used within the substation for cooling and lighting equipment. The system is grid tied and does not have a battery back-up for energy storage. The projects join a 26 kW solar array KEYS installed in 2010 on the Florida Keys Eco-Discovery Center, in partnership with FMPA and NOAAs Florida Keys National Marine Sanctuary. Additionally, the 14 municipal utilities that own FMPAs All-Requirements Project, which includes KEYS, increased their solar generating capacity by nearly 30-percent as a result of renewable projects other FMPA cities deployed that are similar to those spearheaded by KEYS. To help customers grow their green efforts KEYS donated ten Kill-A-Watt electricity monitors to the Key West and Big Pine Key public libraries. The monitors are available for checkout to Lower Florida Keys residents to be used to measure the amount of electricity different appliances use within their home. Appliances can be plugged directly into the monitors to measure their energy usage and efficiency.

Entity Definition

Enabling Legislation Pursuant to the provisions of Chapter 69-1191, Laws of Florida, Special Act of 1969, as amended and supplemented, Section 11, the said Utility Board shall have full and complete power and exclusive authority to fix rates and charges for electricity and charges or prices for any other real and personal property, products and services, materials and commodities, by-products of and from all or any of its activities or operations, furnished or sold by said Utility Board, and to provide for the collection of the same. Bond Resolution Pursuant to the provisions of the Original Bond Resolution, 532, adopted on November 13, 1985, as amended and supplemented, Article V, Section 5.01, (B), the Board covenants to fix, establish, revise from time to time whenever necessary, maintain and collect always such fees, rates, rentals and other charges for the use of the product, services and facilities of the Utility which will always provide Revenues in each Fiscal Year sufficient to pay, and out of such funds pay, 100% of all Operating Expenses of the Utility in such year and all reserve or other payments herein required, and 125% of the Debt Service Requirement in such Fiscal Year on the Bonds. Such rates, fees, rentals or other charges shall not be reduced so as to be insufficient to provide Revenues for such purposes. The Board further covenants and agrees that the Board will annually within thirty (30) days after adoption of the budget revise such fees, rates, rentals and other charges for the use of the product, services and facilities of the Utility to the extent necessary. The Florida Public Service Commission (FPSC) Since KEYS is a public utility the FPSC has rate structure jurisdiction. No rules and regulations, or schedules of rates and charges, or modifications or revisions of the same, shall be effective until filed with and approved by the FPSC as provided by law. Upon acceptable showing by any utility, the FPSC may waive or modify, as to that utility, the provisions of any rule, except when such provisions are fixed by Statute. No deviation from these rules shall be permitted unless authorized in writing by the FPSC. Each utility shall file with the FPSC tariffs applicable to all territory served by it, showing all rates, classifications, and charges for service subject to the jurisdiction of the FPSC, furnished by the utility, and all rules and regulations relating thereto. A letter of transmittal shall be accompanied by various items in connection with each service classification in which any change is proposed. Where the change involves a rate or charge and the electric utility elects to make a cost study, the utility shall file a cost information statement containing a summary of the cost study performed. After acceptance, one stamped copy will be returned to the utility, which shall be the notice to the utility that the filing has been accepted and approved.

iv

Florida Municipal Power Agency (FMPA) The Utility is a member of, and receives all of its power needs from FMPAs All-Requirements Project. Each member appoints one representative to FMPAs Board of Directors, which governs the Agencys activities. The governance of rates charged to members includes the All-Requirements Project Committee (one vote per member) and the FMPA Board of Directors (a members vote is weighted based on the Member Citys net energy for load). Basis of Accounting The financial statements are prepared on the basis of generally accepted accounting principles using the Federal Energy Regulatory Commission (FERC) chart of accounts, which are peculiar to utilities. Revenues are recognized in the period earned and expenses are recognized in the period incurred. Budgetary control is maintained through the use of monthly financial reports and the use of purchase orders, work orders, and miscellaneous cash disbursements and approval procedures. Property, Plant and Equipment is stated at cost, which includes costs of contract work, labor, materials, allocated indirect charges, and capitalized interest. Major renewals and betterments are capitalized while minor replacements and repairs are expensed as incurred. Internal Accounting Controls In developing and maintaining the accounting system, consideration is given by the administration as to the adequacy of internal controls. Internal controls are designed to provide reasonable, but not absolute, assurance as to the safeguarding of assets against loss from unauthorized use or disposition; the reliability of financial records for preparing financial statements in conformity with generally accepted accounting principles; and maintaining accountability for assets. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the evaluation of costs and benefits requires estimates and judgments by management. The first level of control comes directly from the Enabling Act (69-1161). Section 17 requires that the Utility Board hire an independent certified public accountant to complete an annual audit. The second level of control comes from the covenants made by the Utility Board to the bondholders. Among other requirements, the Utility Board must keep accounts in accordance with generally accepted accounting principles and file audited annual financial statements with the Auditor General of the State of Florida within 180 days after the close of its fiscal year. As an additional level of control the Utility Board has established an audit committee consisting of two board members. Budgetary Control In accordance with the Enabling Legislation, the Board holds public hearings and subsequently adopts an annual budget for operating expenses and capital outlay prior to October 1 of the fiscal year. Actual revenues and expenses are compared to the budget on a line item basis (which is the legal level of control) within cost centers, and an Analysis of Variances Report is prepared and submitted to the Board quarterly as required by bond indentures. During the year, staff can make amendments within the operating budget or the capital budget that do not change the total budget for those categories, provided that the change is within the same limitations established by Resolution adopted by the Board. The Board approves all other budget changes. Supplemental appropriations were necessary and the Board in accordance with Utility Board policies amended the budgetary data presented herein. Budget appropriations lapse at each fiscal year-end, except for the Capital Budget. The budget is adopted on a basis consistent with KEYS accrual basis of accounting.

v

Rates for Service The following table compares average monthly charges for electric service among selected utilities in Florida for the fiscal year ended September 30, 2012.

Residential Commercial 1,000 kWh 30KW - 6,000 kWh

Keys Energy Services 135.00$ 807.42$ Bushnell 134.08$ 848.40$ Fort Meade 131.50$ 813.41$ Fort Pierce 128.67$ 840.72$

Other Municipal Green Cove Springs 124.70$ 836.20$ Utilities and Havana 124.99$ 719.94$ Cooperatives Jacksonville Beach 124.91$ 728.46$

in Lake Worth 130.55$ 1,035.88$ Florida Leesburg 125.69$ 779.03$

Starke 125.67$ 850.94$ Vero Beach 126.17$ 805.33$ FL Keys Electric Coop 124.55$ 863.85$

Investor-Owned FL Power & Light 97.89$ 674.67$ Utilities in Progress Energy 127.32$ 706.10$ Florida Tampa Electric Co 110.48$ 649.61$

Source: Florida Municipal Electric Association, Inc. Tallahassee, Florida

COMPARISON OF AVERAGE MONTHLY ELECTRIC BILLS

$90.00

$105.00

$120.00

$135.00

Key

s En

ergy

Se

rvic

es

Bush

nell

Fort

Mea

de

Fort

Pie

rce

Gre

en C

ove

Sprin

gs

Hav

ana

Jack

sonv

ille

Beac

h

Lake

Wo

rth

Lees

burg

Star

ke

Ver

o Be

ach

FL K

eys

Elec

tric

Coo

p

FL P

ower

&

Lig

ht

Pro

gres

s En

erg

y

Tam

pa

Elec

tric

Co

Residential 1,000 kWh

$500.00

$750.00

$1,000.00

$1,250.00

Key

s En

erg

y Se

rvic

es

Bus

hnel

l

Fort

Mea

de

Fort

Pie

rce

Gre

en C

ove

Sp

ring

s

Hav

ana

Jack

sonv

ille

Bea

ch

Lake

Wo

rth

Lees

burg

Star

ke

Ver

o B

each

FL K

eys

Elec

tric

C

oo

p

FL P

ow

er &

Li

ght

Pro

gre

ss

Ener

gy

Tam

pa

Elec

tric

C

o

Commercial 30 KW - 6,000 kWh

vi

Customer Statistics At fiscal year-end 2012, the Utilitys total customer base was 30,197 or 86 more customers than the FY2011 level of 30,111. The number of residential customers increased 41 to 24,660. The number of commercial customers increased 160 to 4,203. The average monthly residential consumption of 1,111 kWh was higher than the FY2011 level by 1 kWh. The average monthly commercial consumption of 6,219 kWh was lower than the FY2011 level by 116 kWh. The consumption for the military decreased 1.1 million kWh. Peak Demand (60 minute net) decreased to 137.8 MW from the FY2011 peak of 140.2 MW. Load Factor was 61.6% in FY2012 compared to 60.9% in FY2011.

0

5,000

10,000

15,000

20,000

25,000

Residential Commercial Miltary City & Other Accounts

Comparison of Number of Customers

2012 2011

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Residential Commercial Miltary City & Other Accounts

Comparison of MWh Sold

2012 2011

Purchased Power The Board voted on July 7, 1997 and amended January 1, 2011, to participate in the FMPA True All-Requirements Project (TARP) whereby the Board will purchase their bulk power supply requirements, in excess of certain excluded resources, from the ARP. The Board began operations as a project participant effective April 1, 1998. The Board has previously entered into several purchased power arrangements including (i) the FMPA Tri-City Project (Stanton 1); (ii) the FMPA Stanton 2 Project, and (iii) long-term purchase agreement from Florida Power & Light Company (FPL). As a member of the ARP, the Boards resources and costs under these three contracts have been assigned to FMPA. Other power resources include the sale of power to Florida Keys Electric Cooperative Association, Inc. (FKEC) and interchange service arrangements with other Florida utilities, customers with renewable generating facilities, and with power marketers. All of the power purchases listed above require transmission over the FKEC transmission system. On January 1, 1992, this became a jointly owned system between KEYS and FKEC and is covered by a Long-Term Joint Investment Transmission Agreement. Please see Notes to Financial Statements for further information. Transmission Facilities KEYS is connected to the mainland Florida transmission network through a 61-mile long, 138 kV transmission line jointly owned by KEYS and FKEC which allows interconnection between the two at FKECs Marathon Substation. The 138 kV transmission line extends northeast along U.S. 1 through FKECs service territory and ties in with FPL at the Monroe-Dade County line. The Boards solely-owned portion of the 138 kV line extends from Marathon Key, in the FKEC service territory, to the Stock Island (U.S. 1) Substation. Along this route, the line loops in and out of the Boards Big Pine and Big Coppitt substations.

vii

Pursuant to the current transmission agreement with FKEC, the Board constructed and jointly owns with FKEC a second 138 kV transmission line, which extends 21 miles from the Tavernier Substation in the FKEC service territory to the Monroe-Dade County line, where it ties into the FPL 138 kV transmission line. The two transmission lines provide greater reliability and increased import capability to KEYS. With the additional segment of 138 kV line the firm MW transfer allocation for KEYS over the Transmission Line is approximately 120 MW. Currently, the transfer capability of the transmission line is approximately 300 MW. KEYS local transmission facilities consist of seven-69 kV lines (14.9 miles) in Key West/Stock Island and four-138 kV lines (51.2 miles) from Key West to Marathon. Distribution is supplied from the 69/138 kV system to KEYS nine distribution substations. Distribution Facilities KEYS distribution system comprises approximately 230 miles of three-phase equivalent 13.8 kV lines from nine distribution substations. Switching for the 13.8 kV distribution system is provided by 13.8 kV metal-clad switchgear. Distribution at 13.8 kV is provided via substation power transformers with varying capacities. There are numerous sectionalizing and isolation switches on the 13.8 kV distribution systems. Additionally, transformer vaults are used on the distribution systems to step down from distribution voltage to utilization voltage at hotels and other large loads. Local Generation Facilities On January 1, 2011, the Board transferred ownership of its three generating units to FMPA with a total synchronized rating of 32 MW. This included a combustion turbine (CT) unit and two medium speed diesel units. Three peaking diesel units located at Stock Island were decommissioned. The other three combustion turbines at Stock Island also owned by FMPA have a combined synchronized ratings are 76 MW. These units contribute to the total synchronized rating of 109 MW. The units all operate with No. 2 oil. Debt Administration The principal amount of Long Term Debt, net of the current portion, was $58.6 million at September 30, 2012 compared to $66.0 million at September 30, 2011. All outstanding debt had fixed interest rates. Total revenue bond debt was comprised of three refunding bond issues 1991, 2000 and 2001, and one revenue bond issue 2006. All issues are rated AAA by Standard & Poors (S&P) and insured by AMBAC Indemnity Corporation. Long Term Financial Planning Long-term financial planning includes monitoring KEYS electric rates while providing quality service for its rate payers. On December 15, 2010 the Board approved and signed the Revised, Amended, and Restated Capacity and Energy Sales Contract which took effect on January 1, 2011 and will remain in effect until October 1, 2024. Under the terms of this contract FMPA took over operational control and ownership of risk for KEYS Stock Island generating units as well as all operation and maintenance costs and capital expenditures. FMPA has hired KEYS as its agent to be responsible for operating and maintaining the generating units. This will save KEYS $2.5 million per year in capital and Operation and Maintenance costs for the first ten years. Change in Accounting Method On June 30, 2011, KEYS changed its method of recording capital asset retirements from Federal Energy Regulatory Commission (FERC) to Generally Accepted Accounting Principles (GAAP). This change is discussed more fully in Note 1 Summary of Significant Accounting Policies.

viii

Certificate of Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Utility Board of the City of Key West for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2011. This was the 20th consecutive year that the Board has achieved this prestigious national award. In order to be awarded a Certificate of Achievement, a government unit must publish an easy to read 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 conform to the Certificate of Achievement Programs requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgments We extend our personal thanks to the dedicated efforts of the Finance Department and efforts of the many other employees from throughout the Company who spent many hours preparing, revising and finalizing this document. We are grateful to Oropeza & Parks, CPAs whose professional skill and integrity have allowed us to present a report that meets the highest standards of financial reporting. Finally, we would like to thank the members of the Board for their interest and support in planning and conducting the operations of the Utility in a responsible and progressive manner. Respectfully submitted,

x

Utility Board of the City of Key West, Florida Chairman Lou Hernandez has served on the Utility Board since 1997. He is the Executive Director of HELPLINE, Inc., a crisis intervention and information referral telephone hotline in Monroe County. Upon graduation from Texas A&M University, Mr. Hernandez was commissioned by the U.S. Army and served as an Infantry Officer in Vietnam. After completing his Armed Services commitment, Mr. Hernandez secured a Federal internship with the US Department of Transportation in the Human Resources Development area. He worked with several Federal agencies, completing his career in Washington as the Director of Training and Employee Development with the General Services Administration. He moved to Key West in 1983 and has worked in the home renovation business and as a counselor at FTPA and the Public Health Department. Mr. Hernandez has served on the Florida Municipal Power Agencys Board of Directors since 2007, and served as its Secretary in 2009 through 2012. Mr. Hernandez has served as president of the Old Island Restoration Foundation, Chairman of the Historic Architectural Review Commission, Chairman of the Monroe County Democratic Party, Secretary/Treasurer of the Key West Redevelopment Land Agency, a Director of the Private Industry Council of Dade/Monroe, member of the Key West AIDS Memorial Board of Directors, president of the Key West Business Guild, and served as Chairman of the Citizen's Review Board of the City of Key West. Vice Chairman Peter Batty has served on the Utility Board since 2005. He is a Florida Licensed Real Estate Broker and has lived in the Florida Keys since 1989. On November 18, 2000, he was ordained as a Permanent Deacon to the Archdiocese of Miami. Mr. Batty received his Bachelor of Science degree from Eastern Michigan University and his Masters degree from St. Thomas University. Mr. Batty is a board member of the Star of the Sea Foundation and former member of the Florida Keys Community College Board and former Vice President of the Wesley House Family Services Board of Directors. Mr. Batty was born in Salisbury, England, and immigrated to the United States in 1955. He and his wife Ellen have raised four children in the Florida Keys.

Mr. Barry L. Barroso, Jr. has served on the Utility Board since 2011. He was born and raised in Key West and has owned Certified Lower Keys Plumbing, Inc. since 1995. Mr. Barroso is a graduate of Mary Immaculate and is a Florida State Certified Master Plumber. He has served on the Key West Planning Board (2006-2009), Key West Board of Adjustments (2007-2009), and the Florida Keys Community College Advisory Board (2010). Mr. Barroso and his wife Ieva have four children and live in Key West.

Mr. Charles A. Bradford Jr. has served on the Utility Board since 2006. He works for Capital Bank and has worked in the Banking and Finance industry for 35 years. Mr. Bradford received his Bachelor's degree in Banking and Finance from the University of North Florida and has certifications in Consumer Lending, Cash Flow analysis, and Accounting. He is a member of St. Paul's Episcopal Church, and Arcturus, and serves on a number of other boards in Key West. In addition, Mr. Bradford is past chair of the Key West Chamber of Commerce and former member of KEYS' Advisory Committee. Mr. Bradford has lived in the Florida Keys since 1980. Ms. Mona C. Clark has served on the Utility Board since 2004 and holds the distinction of being the first female Board member in the Utility's history. She is a retired educator and administrator for the Monroe County School District, where she worked for over 35 years. Ms. Clark received her Bachelor of Science in Education degree from Florida A & M University and her Masters of Education/Leadership degree from the University of South Florida. Ms. Clark serves as Chair of the Mayor's Revolving Loan Fund for the City of Key West and Chair of the Citizen's Advisory Task Force for the Florida Keys Housing Authority. Ms. Clark also served on the Florida Keys Community College Board of Trustees from 1993 to 2001, serving as Board Chair from 1999 to 2001. Additionally, Ms. Clark is a Board member of Womankind, member of the Dr. Martin Luther King, Jr. Scholarship and Birthday Celebration Committee, Mentor for the Take Stock in Children program, a 7th grade CCD teacher at St. Marys Star of the Sea Church, past Sponsor/Director of Tomorrow's Leaders Today, past Secretary for the Wesley House Family Services Board of Directors, and past Treasurer and Vice President of the local branch of the N.A.A.C.P.

xi

Organizational Chart Fiscal Year Ended September 30, 2012

Fleets and Facilities

Management Services Suzanne Greager, Director

Human Resources & Training Risk Management

Engineering & Control Dale Finigan, Director

Engineering Control Room

Executive Assistant to the General Manager & Utility Board

Edee Delph

Transmission & Distribution

David Price, Director

Executive Assistant to the Assistant General Manager &

Chief Financial Officer Kim Free

Utility Board Lou Hernandez, Chairman Peter Batty, Vice Chairman Charles Bradford, Member

Mona Clark, Member Barry Barroso, Member

Assistant General Manager & Chief Financial Officer

Jack Wetzler

Finance Peggy Walls, Asst. Finance Director

Accounting Purchasing and Warehouse

General Manager & Chief Executive Officer

Lynne Tejeda

Customer Services Alex Tejeda, Director

Customer Services Meter Services

Generation Edward Garcia, Director

General Counsel Nathan E. Eden

Information Services

Communications/Marketing

Rate Payers

Advisory Committee

Keys Energy Services Employees as of September 30, 2012

xii

John Albury

Matthew Alfonso

Frank Arencibia

Heather Arencibia

Marcos Arencibia

Pedro Arencibia

Melissa Aull

Eric Balbuena

Deborah Barnett

Robert Barrios

Julio J. Barroso

James Barry

Terry Beeman

Tony Bethel

Mayra Bethel

Jennifer Bevis-Pindur

Laurel Bogoeff

Alan Bradley

Karla Bravo

Kris Bremer

Lynda Bringle

Eric Cyrus Brown

Sandra Brown

Robert Burchett

Harry Carey

Julissa Caridad

Walter Cashwell

George Castellon

Michael Commander

David Cottar

David Cottar Jr.

Kevin Crockett

Fred Culpepper

Jamie Curry

Wayne Davila

Maria De La Torre

Daniel Delice

Edee Delph

Joseph Diaz

Patty Dixon

Michael Domenech

William Duran

Cassie Dziatlik

Manuel Estevez

Michael Euliss

John Fallon

Albert Fernandez

Dale Finigan *

Elizabeth Franco

Kim Free

Daniel Garcia Jr*

Daniel Garcia III

Eddie Garcia

Frankie Garcia

Mark Garcia

Mimi Gartenmayer

Roger George

Edward Giesler

Zahny Gonzalez

Tennille Grassi

Thomas Grassi

Suzanne Greager

Michael Griffin

Sabrina Hall

Susan Ham

Brittani Harden*

Kevin Hawthorne

Randy Huss

Ana Kerr

Sean Kipp

Phil Klausing

Harold Knowles

Victor Linares

Jacek Majewski

Herschell Major

Laurence Marius

James McClendon

Cindy McVeigh

Neil Mellies

Ony Mendez

Amber Menendez

Juan Menendez

Robert Mesa

Armando Mira III

Horace Mobley

Sharon Moore

James Newton

Griff Niekerk

Catherine Nix

Patrick Nolan

Gricel Owen

Allen Palka

Jeff Partington

Don Paxson

Catherine Peace

Chasity Perez

Dina Perez

Jerry Pita

Eva Pope

David Price

Alberto Pumar

Martha Ramas

Beverly Ray

Alvaro Rodriguez

Amanda Rodriguez

David Rodriguez

Armando Rojas

Matthew

agenda - keys energy services · agenda utility board of the city of key west, fl regular meeting...

Documents