florida keys aqueduct authority · 5/23/2018 · florida keys aqueduct authority board of...

Note: The Board of Directors does allow time for comments from the public, who have completed sign-in cards, on any Agenda Item or

any specific areas of concern. Individuals will be allotted 3 minutes to make presentation. Representatives from established groups will

be allotted 5 minutes to make presentation.

FLORIDA KEYS AQUEDUCT AUTHORITY

BOARD OF DIRECTORS’ MEETING

Open to the Public

Florida Keys Electric Cooperative, Inc.

Board Room

91630 Overseas Highway

Tavernier, Florida 33070

Wednesday, May 23, 2018

10:30 a.m.

REGULAR MEETING AGENDA

INVOCATION

PLEDGE OF ALLEGIANCE

EMPLOYEE OF THE QUARTER

Ryan Arnette 12 Years of Service

APPROVAL OF MINUTES: April 18, 2018 CIP Workshop

April 25, 2018 Regular Board Meeting

ADDITIONS/DELETIONS TO AGENDA

ACCEPTANCE OF AGENDA

CONSENT AGENDA ITEMS

OFFICE OF COUNSEL

1. OOC – 01. Consideration to approve payment to Allen, Norton & Blue, P.A. for April

2018 ($85.50)

FKAA Agenda – May 23, 2018

DIVISION OF UTILITY OPERATIONS

2. DUO – 01. Consideration to approve the purchase of four blower enclosures for the Big

Coppitt Wastewater Treatment Plant ($45,300.00)

3. DUO – 02. Consideration to approve a three-year contract renewal for Flowers Chemical

Laboratories ($137,500.00 estimate)

REGULAR AGENDA ITEMS

EXECUTIVE DEPARTMENT

EO – 01. Executive Director’s Report

•Drop Saver Poster Contest Winners

•FPL Update-Lee Hefty, Miami-Dade Director Division of

Environmental Resources Management (DERM)

OFFICE OF COUNSEL

OOC – 01. Consideration to approve a resolution 18-05 of the Florida Keys Aqueduct

Authority, establishing its intent to reimburse certain costs incurred relating to

water projects from proceeds of a future tax-exempt financing; authorizing the

Deputy Executive Director as the Authority’s Compliance Officer for purposes of

preparing policies and procedures for post issuance compliance with the internal

revenue code, as amended; providing certain other matters in connection

therewith; and providing an effective date

DIVISION OF ADMINISTRATION

DOA – 01. Summary of Financial Information for October 2017 through April 2018

DOA – 02. Summary of Contractual Commitments through April 30, 2018

DOA – 03. Consideration to approve a Budget Amendment for direct emergency repair

expenses of damage sustained during Hurricane Irma and the replacement of a 40-

ton AC Chiller for the J. Robert Dean Treatment Facility ($2,700,000.00)

DIVISION OF UTILITY OPERATIONS

DUO – 01. Review of the structural status of the existing Key West Administration Building,

and consideration to approve a site selection for the new Key West

Administration Building DUO – 02. Status Report on Wastewater Projects

DUO – 03. Consideration to approve contract with Black & Veatch Corporation to prepare a

planning level cost estimate for three (3) alternatives for Project # 1150-17 Stock

Island Reverse Osmosis upgrades ($45,726.00)

DUO – 04. Consideration to approve the award of IFB-0007-18 to Ferguson Waterworks for

FKAA Agenda – May 23, 2018

the purchase of pipe for water construction activities related to the College Road,

Stock Island Project #2328-17 by the Florida Keys Aqueduct Authority

Construction Crew (not to exceed $174,000.00)

DUO – 05. Consideration to approve the award of IFB-0008-18 to True Haul, LLC for the

purchase of DOT Crushed Rock and Pearock #89 (not to exceed $266,000.00)

and Charley Toppino & Sons, Inc. for the purchase of Flowable Fill (not to

exceed $187,000.00) for water construction activities related to the College Road,

Stock Island- Project #2328-17

DUO – 06. Consideration to award the Trumbo Point Tank and Pump Station Replacement,

Project #8034-17, to Charley Toppino and Sons, Inc. ($2,186,500.00)

DUO – 07. Consideration to approve services from Jones Edmunds & Associates to digitize

as-builts and perform Cogsdale GIS integration in the amount of $122,200.00

BOARD OF DIRECTORS

BOD – 01. Board of Directors Discussion

MINUTES OF A WORKSHOP

OF THE

BOARD OF DIRECTORS


HELD ON

April 18, 2018

CITY OF MARATHON COUNCIL CHAMBERS ROOM

9805 OVERSEAS HIGHWAY MARATHON, FLORIDA 33050

10:00 A.M.

The following MEMBERS were present:

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

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

A LIST OF ATTENDANCE IS RETAINED WITH THE PERMANENT RECORD OF THIS MEETING.

FKAA Board Minutes April 18,2018 Page 2

CIP WORKSHOP

Chairman Dean called the Meeting to order at 10:05 a.m.

Mr. Zuelch opened the Workshop stating that the objective for the Capital Improvement Plan (CIP) Workshop is to give the Board an update on projects that are underway and possible upcoming projects. Mr. Zuelch explained that the cost associated with these projects will be brought to the Board at the Budget Workshop that will be held in May.

Mr. Nelson explained the Presentation will focus on the operational needs and the methodology of project prioritization.

Mr. Nelson explained Maintenance Management and Capital Planning have a current disconnect due to not having an active maintenance management data-base where we can gather current maintenance information and use it effectively for capital planning. Mr. Nelson stated that City-Works will give us that ability and help us manage our assets more effectively.

Mr. Nelson reviewed the processes currently in place at the Florida Keys Aqueduct Authority (FKAA) and proposed to build on the existing strategy in an effort to optimize capital planning. Mr. Nelson stated that a new Master Plan exercise will be completed, adding that one should be done every two years. Mr. Nelson explained the importance of the life cycle analysis on assets with maintenance we can extend the life of the asset instead of replacing items.

Mr. Ritz inquired when the capital asset is acquired, if the life cycle cost is reviewed at that time. Mr. Nelson stated that it was.

Mr. Nelson reviewed a recent Transmission Break at mile marker 86 in lslamorada as an example of operational needs. Mr. Nelson reported that a rather insignificant spike in pressure caused the break. It appears tidal action had caused corrosion to weaken the pipe. Mr. Nelson added that there are other known areas in the transmission system where this is occurring, and likely more that are unknown.

Mr. Nelson advised that two major projects have been intentionally omitted from the CIP prioritization exercise, the Stock Island Reverse Osmosis Plant and the Key West Administration Building. Mr. Nelson explained that once there has been a discussion with the Board we will have a better sense of direction on how to incorporate these two projects into the CIP.

Mr. Nelson reported on current projects that are underway this year:

• C905 Project- Key Largo up to Ocean Reef • Design for Grassy Key-Islamorada Transmission Main • Ongoing work on Key Haven • Rehabilitation to the Stock Island R.O. Facility

FKAA Board Minutes April 18, 2018 Page 3

Mr. Shelby explained that there are many options to consider for funding. The pay as you go approach is one, which under our current operating rates would give us $5,000,000.00 to $6,000,000.00 a year to spend on capital over a 5-year period for an estimated $25,000,000.00 without borrowing or raising rates. Mr. Shelby further advised that a $50,000,000.00 borrowing target would result in two 4% to 5% rate increases per year for a 5-year window. Mr. Shelby suggested that once the projects have been prioritized and we have estimated costs we can address at that point which option for funding will work best. Mr. Shelby added that with the state of our infrastructure and the issues and projects that Mr. Nelson has presented to the Board it is going to be difficult to fund these projects without borrowing and raising rates.

Chairman Dean commented that the R.O. Plant, The Key West Administration Building and the Transmission Line are the top three areas of concern. Chairman Dean asked that Staff bring estimated cost associated with these projects to the Board for consideration. Mr. Zuelch advised that Staff will bring numbers to these projects at May's Workshop.

Attest:

ADJOURNMENT

A copy of the CIP Workshop Presentation may be found with the permanent record.

With there being no further discussion, the meeting was adjourned at 11 :29 p.m.

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


By: ____________ _ J. Robert Dean, Chairman

David C. Ritz, Secretary/Treasurer


BOARD MEMBERS

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

FKAASTAFF

Kirk C. Zuelch Kerry G. Shelby Kent Nelson Robert T. Feldman Timothy Esquinaldo Julie Cheon

ATTENDANCE

Maghan Barber Pam Albury Jerry Jarrett

MINUTES OF REGULAR MEETING

OF THE

BOARD OF DIRECTORS


HELD ON

APRii 25, 2018

KEYS ENERGY SERVICES BOARDROOM

1001 JAMES STREET KEY WEST, FLORIDA 33040

10:00 A.M.

The following MEMBERS were present:

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

Kirk C. Zuelch .. . ......... Executive Director Kerry G. Shelby ....... . .. . Deputy Executive Director Kent Nelson ........... . .. Deputy Executive Director Robert T. Feldman .. .. . . . .. General Counsel

A LIST OF ATTENDANCE IS RETAINED WITH THE PERMANENT RECORD OF THIS MEETING.


REGULAR MEETING

Chairman Dean called the Regular Meeting to order at 10:12 a.m.

Pam Albury presented the invocation and Chairman Dean led the Pledge of Allegiance.

EMPLOYEE AW ARDS

Service Awards

Mark Joiner - Stock Island Plant Operator, Operations Division, Lower Keys, 30 Years of Service

Melinda Rodriguez - Buyer, Administration Division, Lower Keys, 30 Years of Service

Patrick Barroso - Stock Island Plant Operator, Operations Division, Lower Keys, 25 Years of Service

Peter Gomez - Area Manager, Operations Division, Lower Keys, 25 Years of Service

Rudy Rivas - Field Representative, Customer Service Division, Lower Keys, 25 Years of Service

Bubba Osterhoudt - Construction Manager, Operations Division, Lower Keys, 25 Years of Service

Teri Veliz - Executive Assistant- Internal Auditor, Executive Division, Lower Keys, 20 Years of Service

Ronald Moore - Distribution System Operator C, Operations Division, Lower Keys, 15 Years of Service

David Jackson - Procurement and Inventory Manager, Administration Division, Lower Keys, 15 Years of Service

Dave Hoffman - Wastewater Treatment Plant Operator C, Operations Division, Middle Keys, 10 Years of Service

APPROVAL OF MINUTES

On motion of Mr. Ritz, seconded by Mrs. Higgins, the Board unanimously approved the Minutes of an Audit Committee Meeting held on March 27, 2018 and the Minutes of a Board Meeting held on March 28, 2018 as presented.


APPROVAL OF AGENDA

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

CONSENT AGENDA WATER/WASTEWATER

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

1. OOC - 01 Approval of payment to Allen, Norton & Blue for February 2018 ($85 .50)

2. OOC - 02 Approval of payment to Bryant, Miller & Olive for professional services rendered and expenses incurred for the month of March 2018 regarding claims against TKW Consulting Engineers for defective design of Cudjoe Regional Wastewater System (CRWS) solids processing facility ($120.00 Monroe County)

3. DOA - 01 Approval of an addendum to the purchasing policy for use when goods and services are being procured with federal funds.

4. DOA - 02 Approval of City-Works software support renewal at an annual cost ($45,000.00)

5. DOA - 03 Approval of changing the threshold for capital fixed assets ($1,500.00 to $5,000.00)

6. DU0 - 01 Approval to award Bid #:FKAA-IFB-0005-18 to West Florida Maintenance for painting of the Upper Keys Water Tanks ($96,000.00)

7. DU0 - 02 Approval to award Bid # :FKAA-IFB-0002-18 to Allied Universal for a I-Year Contract-Liquid Chlorine for use at the J. Robert Dean WTP at a cost of $0.3475 per pound ($208,500.00)

8. DUO - 03 Approval to award Bid # :FKAA-IFB-0004-18, for the purchase of a 10,000 gallon above ground diesel fuel storage tank at Ramrod Pump Station to Envirosafe ($43,700.00)

9. DUO - 04 Approval of abandonment of a portion of the Bow Road Public right of way and the unnamed 15 foot wide alleyway Public right of way, adjacent to Lots 27,28,29,30 and 31, Sugarloaf Townsite, according to the Plat thereof as recorded in Plat Book 3, Page 180, of the Public Records of Monroe County, Florida. The FKAA has no faci lities located within the area of requested abandonment

10. DUO - 05 Approval of Resolution # 18-04 delegating representatives of the Florida Keys Aqueduct Authority (FKAA) to sign State of Florida permit applications


REGULAR AGENDA ITEMS

EXECUTIVE DEPARTMENT

E0-01. EXECUTIVE DIRECTOR'S REPORT

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

Mr. Zuelch thanked Keys Energy Service for allowing us to utilize their Board Room.

Florida Power and Light Turkey Point Update

Mr. Zuelch advised the Board that Mr. Lee Hefty from the Division of Environmental Resources Management (DERM) is unable to attend today's meeting but will be attending May's Board Meeting.

Mr. Zuelch reported that the Florida Keys Aqueduct Authority received support from the Momoe County Commission and Representative Raschien whom all sent letters of concern to the Miami-Dade Commission.

Mr. Zuelch added that Florida Power Light (FPL) spoke at Ocean Reefrecently. Mr. Ritz reported that they presented a similar Presentation that had been shown at the Authority's previous meeting, adding that the only changes to the Presentation were errors that Mr. Nelson had pointed out to FPL. Chairman Dean thanked Mr. Ritz for staying in touch on the FPL issue. Mr. Ritz thanked staff for doing a great job.

Mr. Zuelch advised that due to the fires on Big Pine Key staff would like to give a rebate to the residents that had higher than normal water usage due to the fire. Mr. Zuelch explained that the amount over the residents normal bill would be rebated. The Board unanimously approved.

OFFICE OF COUNSEL

OOC-01. GENERAL COUNSEL'S REPORT

Florida Power and Light

Mr. Feldman advised the Board that he met with FPL Representatives and their Legal Counsel. He stated that the timing is not right to prepare an Amicus Brief for filing. He will keep the Board advised as the case proceeds in Federal Court.

Delaney and Kulikowsky vs. FKAA and Monroe County


Mr. Feldman advised that a hearing will be held on July 25, 2018 on both the Plaintiffs and Defendant's Motion to Summary Judgement before the Honorable Timothy J. Koenig for his consideration.

FKAA Cudjoe Regional Wastewater Treatment Plant

Mr. Feldman advised that TKW and its subcontractors Black and Veatch Corporations designed and supervised the construction of the Plant Centrifuge. The location of the Centrifuge is designed in such a manner that it can't be serviced or repaired due to its location. He further advised that a conference will be held on April 30, 2018 to review plans to correct the Centrifuge problem.

OOC-02. APPROVAL OF RESOLUTION #18-03, ADOPTING THE MONROE COUNTY 2015 LOCAL MITIGATION STRATEGY AS

REQUIRED BY STATE AND FEDERAL REGULATIONS TO QUALIFY FOR CERTAIN MITIGATION GRANT FUNDING

On recommendation of Mr. Feldman and motion of Mr. Ritz, seconded by Mrs. Appell, the Board approved Resolution # 18-03, adopting the Monroe County 2015 Local Mitigation Strategy as required by state and federal regulations to qualify for certain mitigation grant funding.

DIVISION OF ADMINISTRATION

DOA-01. SUMMARY OF FINANCIAL INFORMATION OCTOBER 2017 THROUGH MARCH 2018

Mr. Shelby reported on financials through March 31, 2018, stating that we are at midpoint of our year and at 48% of budget. He went on to say that we are behind in revenue, and have spent $3.5 Million on Capital Projects to date. Mr. Shelby added that the cash position is sti ll very healthy.

Mr. Toppino asked if any progress had been made in streamlining of the Authority's inventory, which had been discussed at a previous meeting. Mr. Shelby advised that since that meeting the Purchasing Supervisor prepared reports showing the inventory that has not been issued in the past 12 months, adding that staff will meet with Water and Wastewater Departments to review the reports and eliminate some of the items that are not used on a regular basis.

DOA-02. SUMMARY OF CONTRACTUAL COMMITMENTS THROUGH MARCH 31, 2018

Mr. Shelby reported that contractual commitments total approximately $14,500,000.00 of which the Authority is responsible for approximately $7,000,000.00.

DIVISION OF UTILITY OPERA TIO NS


DU0-01. STATUS REPORT WASTEWATER PROJECTS

Mr. Nelson presented an update on wastewater projects as follows:

Key Haven: 73% project completion Big Coppitt / Bay Point I Duck Key: 100% completion with ongoing connection installation Layton / Long Key: 98% project completion with ongoing connection installation Cudjoe Regional: 94% project completion with continued ongoing connections and grinder station installation, as well as punchlist items for the Outer Islands contract

DU0-02. APPROVAL OF CHANGE ORDER NUMBER 27 WHICH REPRESENTS A FINAL ACCOUNTING OF ALL CONTRACT COSTS FOR THE CUDJOE REGIONAL ADV AN CED WATER RECLAMATION FACILITY CONTRACT WITH WHARTON

SMITH, INC. {$1,000.00)

On recommendation of Mr. Nelson and motion of Mr. Ritz , seconded by Mrs. Higgins, the Board approved Change Order No. 27 which represents a final accounting of all contract costs for the Cudjoe Regional Advanced Water Reclamation Facility Contract with WhartonSmith, Inc. in the amount of $1,000.00.

DU0-03. APPROVAL OF CHANGE ORDER 2 FOR PROJECT #4062-16 BOCA CHICA NAVAL AIR STATION PUMP STATION AND FORCE MAIN EXTENSION TO

CHARLEY TOPPINO AND SONS, INC. FOR THE DEMOLITION AND REMOVAL FROM SITE THE NON-ESSENTIAL WASTEWATER TREATMENT PLANT INFRASTRUCTURE AND THE INSTALLATION OF MONORAIL SYSTEM,

MANUAL INFLUENT SCREEN, AND ELECTRICAL EQUIPMENT {$546,174.23)

On recommendation of Mr. Nelson and motion of Mrs. Appell, seconded by Mrs. Higgins, the Board approved Change Order 2 for Project #4062-16 Boca Chica Naval Air Station Pump Station and Force Main Extension to Charley Toppino and Sons, Inc. for the demolition and removal from site the non-essential wastewater treatment plant infrastructure and the installation of monorail system, manual influent screen, and electrical equipment in the amount of $546,174.23 .

Mr. Toppino declared a conflict of interest and abstained from the vote on Item DU0-03.

DU0-04. APPROVAL TO AW ARD C-905 TRANSMISSION WATER MAIN REPLACEMENT-PHASES llA & llB TO FERREIRA {$8,784,445.94)

On recommendation of Mr. Nelson and motion of Mr. Ritz, seconded by Mrs. Appell, the Board approved to award C-905 Transmission Water Main Replacement-Phases llA & llB to Ferreira in the amount of $8,784,445.94.



DUO-OS. APPROVAL OF THE CONTRACT CLOSEOUT OF PROJECT #2327-17-UNITED STREET WATERMAIN REPLACEMENT-PHASE 1 AND AUTHORIZE

FINAL PAYMENT TO CHARLEY TOPPINO AND SONS, INC. ($30,835.51)

On recommendation of Mr. Nelson and motion of Mrs. Higgins, seconded by Mrs. Appell, the Board approved the Contract closeout of Project #2327-17- United Street Watermain Replacement-Phase 1 and authorize final payment to Charley Toppino and Sons, Inc. in the amount of $30,835.51.


DU0-06. APPROVAL TO AWARD BID#:FKAA-IFB-0003-18, 2-YEAR CONTRACTGRANULAR/RICE QUICKLIME, TO LHOIST NORTH AMERICA ($3,639,500.00)

On recommendation of Mr. Nelson and motion of Mrs. Appell, seconded by Mr. Ritz, the Board approved to award Bid# : FKAA-IFB-0003-18, 2-Year Contract-Granular/Rice Quicklime, to Lhoist North America in the amount of $3,639,500.00.

Mrs. Appell asked how many days are the Authority's bids advertised. Mr. Shelby advised a minimum of 10 calendar days. Mr. Ritz suggested we check in with bidders to verify why they are not participating. Mr. Shelby added it could be length of time of the advertisement or where its being advertised that is affecting the response from participants, adding that staff will be reviewing both.

Attest:

BOARD OF DIRECTORS

BOD-01. BOARD OF DIRECTORS DISCUSSION

ADJOURNMENT

With there being no further business, the meeting was adjourned at 11 :01 p.m.

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


By: ______________ _ J. Robert Dean, Chairman

David C. Ritz, Secretary/Treasurer


BOARD MEMBERS

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

FKAA STAFF

Kirk C. Zuelch Kerry G. Shelby Kent Nelson Robert T. Feldman Brian Rodriguez Teri Veliz Ron Moore Jay Miller

ATTENDANCE

Julie Cheon Pam Albury Jerry Jarrett Maghan Barber Patrick Barroso Mark Joiner David Jackson Peter Gomez

Dana Vega Freddie Guieb Rudy Rivas Melinda Rodriguez Bubba Osterhoudt Jolynn Reynolds Dave Hoffman

BOARD OF DIRECTORS, FLORIDA KEYS AQUEDUCT AUTHORITY AGENDA ITEM SUMMARY

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

MEETING DATE: May 23, 2018 DIVISION: OFFICE OF COUNSEL

AGENDA TITLE: Consideration to Approve Payment to Allen, Norton & Blue, P.A. for April 2018 in the amount of $85.50.

ITEM BACKGROUND: Allen, Norton & Blue, P.A. handles all outside legal matters relative to personnel and Union Contract issues.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS:

STAFF RECOMMENDATION (MOTION): Board approve payment to Allen, Norton & Blue, P.A., Florida Keys Aqueduct Authority Labor Attorney, for services rendered in April 2018 in the amount of $85.50

SUPPLEMENTAL INFORMATION:

DOCUMENTATION: Included: D Not Required: D Cost to FKAA: $ ____ 85_.5_0_

To-Follow: D BUDGETED: YesD No CJ

Cost to Others: $ -----

Total Cost $ ___ ___:_85-'-.-'--50_

DEPARTMENT: DEPARTMENT DIRECTOR APPROVAL:

DIVISION DIRECTOR APPROVAL:.--->.(J3""==-"'~....::...._::........i...~~· -,1,. ;..,::~ ::.......;.._ ___________ _

Reviewed by: Internal Audftor. General Counsel: f;(f: Executive Direc!Dr.~

BOARD ACTION:

Approved: o Tabled: 0 Disapproved: o Recommendation Revised: o

Comments: -------------------------------Date:. _ __________ _ Recording Clerk: ____________ _

Florida Keys Aqueduct Authority Attn: Deanna Esquinaldo Executive Department email: [email protected] Key West, FL 33040

General Matters

0307 00000 WLH

Balance forward as of bill dated Payments received since last bill

Net balance forward

ALLEN, NORTON & BLUE, P.A. 121 M~ Avenue

Coral Gables, R. 33134-4599 (305) 445·7801 Fax (305) 442·1578

Tax l,D, #59-1287650

03/15/2018 05/02/2018

May 3, 2018

$85.50 $85.50 CR

$0.00

FOR PROFESSIONAL SERVICES RENDERED

Bill Number 132137 Billed through 04/30/2018

04/26/18 WLH Phone conference with Zuelch re: employee matter 0.30 hrs 90.00

TOTAL HOURS: 0.30 TOTAL FEES: $90.00

Shareholder, Wayne L. Helsby 0.30 300.00 $90.00

EXPENSES

MATTER BILUNG SUMMARY

PREPAID BALANCE

TOTAL FEES

TOTAL CHARGES FOR THIS BILL

PLUS BALANCE FORWARD

TOTAL BALANCE NOW DUE

$0.00

AGED ACCOUNTS RECEIVABLE

0-30 Days iMQ

30-60 Days $Q.QQ

60-90 Days iQ.QQ

90-120Days 1QJ!Q

----------------

$90.00 ----------------

$90.00

$0.00

---- ------------$90.00

120 + Days $Q..QQ


AGENDA ITEM: DU0- 0/ TAB: CONSENT: ~ REGULAR: D

MEETING DATE: 05/23/18 DIVISION: UTILITY OPERATIONS

AGENDA TITLE: Consideration to approve the purchase of four blower enclosures for the Big Coppitt Wastewater Treatment Plant (WWTP).

ITEM BACKGROUND: There are total of eight process blowers on the upper deck of the Big Coppitt WWTP exposed to extremely harsh conditions created by the weather and the surrounding quarry/concrete plant operations. As a result, the exterior steel cabinets of these blowers have significantly deteriorated, despite performance of routine maintenance. In response, staff have developed an annual program of replacing the existing steel blower enclosures with corrosion-resistant PVC enclosures. To date, two steel blower enclosures have been replaced and an additional four have been identified as needing replacement.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: Board previously approved the purchase of two blower enclosures for the Big Coppitt facility and one blower enclosure for the Duck Key facility.

STAFF RECOMMENDATION (MOTION): Approve the purchase of four (4) PVC blower enclosures for the Big Coppitt WWTP, in the estimated amount $45,300.00.

SUPPLEMENTAL INFORMATION: N/A

DOCUMENTATION: Included:

Cost to FKAA: $ 45,300.00 Cost to Others: $ N/A Total Cost: $ 45,300.00

DEPARTMENT: Wastewater Operations

0 To-Follow: D BUDGETED: Yes [KJ

DEPARTMENT DIRECTOR APPROVAL:

Not Required: D No CJ

L DIVISION DIRECTOR APPROVAL:_-:c:li'f"''ff-~~------------------,-

Executive Director:~ Reviewed by: Internal Auditor:----+-- General Counsel: ~p

BOARD ACTION:

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

Comments: _ _ _______________________________ _

Date: ___________ _ Recording Clerk: ___________ __ _

&ca EtfalNEEREO SYSTEMS

Odor Control Systems, Fume Scrubbers, Aerators,

Degasifiers, AMCA Certified Centrifugal Fans,

Exhaust Hoods, Duct & Fittings

PVC, Polypropylene, Dual Laminate, and FRP Ventilation Systems

CORPORA TE OFFICE AND MANUFACTURING

HEADQUARTERS LOCATED IN

NORTH CAROLINA

PO BOX 1287 I 44 Industrial Dr.

Forest City, NC 28043 (828) 245-9836

Fax (828) 245-1437 [email protected] www.KCHServices.com

"We Clean the World's Air and Water"

Page 1 of 3 Proposal Number D/32437 rev 1

Mr. Jay Miller Florida Keys Aqueduct Authority 3375 Overseas Highway Marathon, FL. 33050 Ph: 305-809-2623 Email: [email protected]

March 7, 2018

KCH Engineered Systems is pleased to provide the following proposal to su I 100% Non-Corrosive, Blower Enclosure:

Item

1.

2.

3.

Description

Big Coppit Key K-Large Blower Enclosures KCH Engineered Systems will supply (2) 69" x 63" x 72" tall blower enclosure fabricated from heavy duty PVC material which will be painted white. The unit will be supplied with a sloped top to prevent rain from settling and also be supplied with (4) eyebolts which will go in the top corners for lifting purposes. The perimeter will have a 1-1/2" flange around the entire bottom. Enclosures will include (2) doors with stainless steel hinges and handles. Including (2) 12" X 12" PVC fresh air louvers will be included.

TOTAL NET PRICE ..................................... .

Big Coppit Key Roots Blower Enclosures KCH Engineered Systems will supply (2) 58" x 44" x 48" tall blower enclosure fabricated from heavy duty PVC material which will be painted white. The unit will be supplied with a sloped top to prevent rain from settling and also be supplied with (4) eyebolts which will go in the top corners for lifting purposes. The perimeter will have a 1-1/2" flange around the entire bottom. Enclosures will include (2) doors with stainless steel hinges and handles. Including (2) 12" X 12" PVC fresh air louvers will be included.

TOTAL NET PRICE .................................... ..

FREIGHT TO THE FLORIDA KEYS

Total freight cost for (4) enclosures ................. .

Prices do not include installation.

Qty Total Net Price

2 $27,250.00

2 $14,553.00

1 $3,500.00

&ca E#GIIIEERED SYSTEMS





CORPORATE OFFICE AND MANUFACTURJNG


NORTH CAROLINA

PO BOX 1287 144 Industrial Dr.

Forest City, NC 28043 (828) 245-9836

Fax (828) 245-1437 [email protected]

www.KCHServices.com


PAYMENT TERMS: • 100% DUE NET 30 DAYS AFTER SHIPMENT

Page 2 of 3 Proposal Number D/3243 7 rev 1

• Any Engineering/Autocad Drawings, etc., will not commence until down dayment and written purchase order is received at KCH.

• LEAD TIME IS BASED ON RECEIPT OF WRITTEN PURCHASE ORDER AND APPROVAL OF DRAWINGS.

SHIPPING POINT - Forest City, NC - FREIGHT INCLUDED. F.O.B. POINT - Forest City, NC - FREIGHT INCLUDED. Note: *There will be a 3% charge on MasterCard and Visa transactions to cover the bankcard processing fees.

GENERAL NOTES: I. Infonnation contained in this quotation is considered confidential and proprietary and not to be used, copied and

distributed without the pennission ofKCH. It is to be returned to KCH immediately upon request. 2. Quote is good for 90 days.

KCH Contact -Dan Ching Municipal Sales Manager Email: [email protected] Ph# 828-7 48-7722

TERMS AND CONDITIONS By Acceptance of this Offer the Buyer Expressly Agrees:

Page 3 of 3 Proposal Number D/32437 rev 1

1. AGREEMENT. This offer is expressly limited to the acceptance of the exact terms and conditions contained herein and any acceptance by Buyer shall be deemed an acceptance of each and every said term and condition. This Offer contains a final and exclusive statement of the terms and conditions of the Contract between KCH Se<Vices, Inc. (hereinafter "KCH") and Buyer relative to this sale of products, materials and/or services described or referred to on the front side herecf. All prior under1akings, writings, and oral representations between the parties hereto shall be superseded by this Agreement. No prior dealings between the parties, no usage of trade, and no industry practice shall be relevant to supplement or explain any term used in this agreement. 2. ACCEPTANCE. This Offer may be accepted orally, in writing, or by Buye(s return of this document to KCH acknowledging acceptance. This offer shall expire on midnight on the thirtieth day after the date shown on front side herecf, unless it is sooner revoked by oral or written notice from KCH. Buyer understands and agrees that the goods are specially manufactured for Buyer, and are not suitable for sale to olhers in the ordinary coorse of KCH's business. 3. MODIFICATION. The terms and conditions contained herein can only be modified or waived by a separate written agreement signed by a duly authorized representative of KCH. 4. RESCISSION. This Agreement can only be rescinded by a separate written agreemenl signed by a duly authorized representative of KCH. 5. WAIVER. Waiver by KCH of any term, provision or condition hereof shall not be construed as a waiver of any other term, provision or condilion, nor shall waiver be deemed a waiver of subsequenl breach of the same term, condition or provision. 6. CONTINGENCIES. KCH shall not be held liable if prevented from performing any of ils obligations of the Agreement due to causes beyond its reasonable control, including, but not limited to, events such as fire, flood, drought, earthquake, acts of God, war, riot, strikes, differences \vith wori<men, lockouts, epidemics, quarantines, delays in transportation, shortage of vehicles, fuel, supplies. labor or materials, embargo, governmental orders or legal actions. 7. TAXES. Listed prices referred to on the fronl side hereof de nol include sales, purchase use, excise delivery, storage transportation, consumption or other taxes payable to any governmental authority in respect to the sale of KCH's products, materials and/or services. Instead, taxes are to be added to the listed purchase price of such products, materials and/or services and shall be fully paid by Buyer within thirty (30) days of demand by KCH. 8. DELIVERY AND SHIPMENT. Any indicated dates of delivery are approximate only. Upon Buyer's receipt of either the products, materials or services described or referred to on the front side hereof, F.O.B. carrier, all risk of loss, damage and other incidents of ownership shall immediately pass to Buyer. However, title to such products will be retained by KCH as security for Buyer's performance until payment in full is received. 9. DUTY TO INSPECT. Upon Buye(s receipt of products and materials, and upon complelion of KCH's workmanship, Buyer shall immediately inspect such products, materials and/or wori<manship. Notice of nonconforming products, materials and/orwori<manship shall be given to KCH within fourteen (14) days after Buyer's receipt of goods, unless workmanship is provided whereupon notice shall be given \vithin fourteen (14) days of completion of workmanship. Fai lure to provide notice \vithin fourteen (14) days after date of receipt of products, materials and/or wori<manship shall constitute a waiver of Buyer's remedies. 10. WARRANTY. KCH warrants to Buyer that, subject to Sections Nine (9) and Eleven (11) ooreof, and/or including any specifications so incorporated. KCH warrants all of its manufactured products against defects in material and workmanship for a period of one (1) year from the date the KCH product is received at custome(s premises. KCH \viii provide on a pass.through basis the standard manufaclurer's warranty on any components and/or equipment supplied by KCH. No additional warranties are extended by KCH. In no event \viii KCH be liable for removal or reinstallation of any defective parts without prior written consent. No allowance will be made for repairs or alterations unless specifically authorized in writing by KCH. Removal and reinstallation of defeclive parts sha ll be the responsibility of the Buyer. NO CLAIM WILL BE ALLOWED FOR DAMAGES OR DELAYS CAUSED BY DEFECTIVE MATERIALS, OR OPERA TtONS FAILURES INCLUDING DELAYS IN ANY EQUIPMENT, OR ANY CONSEQUENTIAL DAMAGE OR BUSINESS LOSS INCURRED BY BUYER. THIS WARRANTY DOES NOT APPLY TO OPERATIONAL WEAR AND TEAR, MISUSE, IMPROPER SERVICE, FIELD ALTERATIONS OF PRODUCTS, DAMAGE DUE TO LACK OF MAINTENANCE OR IMPROPER STORAGE, NEGLECT, ACCIDENT, SABOTAGE, OR FOR DAMAGE FROM USE UNINTENDED OR UNANTICIPATED BY KCH. KCH WARRANTY WILL BE VOID IF ANY OUTSTANDING/AND OR CHANGE ORDER INVOICES HAVE NOT BEEN PAID IN FULL KCH WARRANTY BEGINS UPON DELIVERY OF EQUIPMENT AT JOBSITE. 11. PERMISSIBLE VARIATIONS. Unless otherwise specified and agreed upon, all products, materials and/or workmanship shall be furnished subject to KCH's standard practices, tolerances and variations. KCH reserves the right to ship overages and underages of weight, length, size and/or quality in acoordanoe of KC H's standard practices. 12. LAWS, REGULATIONS, AND STANDARDS. KCH makes no representalion that its products, materials and/or workmanship conform(s) to local, state, federal, and/or foreign laws, ordinances, regulations and/or codes, or that the KCH products, materials and/or workmanship selected by Buyer \viii cause Buyer's operations to comply \vith any local, state, federal and/or fore ign laws ordinances, regulations and/or codes. It is the sote responsibility of the Buyer to select the appropriate KCH products, materials and/or services to meet with such requirements. Buyer understands that KCH does not provide advice or consultation. All KCH equipment is designed to meet the standards of S.P.I. and the American Conference of Governmental Industrial Hygienists; KCH makes no representation that its products and services conform to any other standards except as may be otherwise agreed in writing and signed by a duly authorized representative of KCH. 13. PERMITS. Buyer is solely responsible for obtaining any and all governmental permits, authorizations, documents, and/or any other related forms of any nature. 14. TERMS. Unless otherwise stated herein, the standard terms of paymenl are 50% payment due upon the parties' mutual assent to this agreement, 40% payment due before date of shipment and 10% payment due 30 days after date of sh ipment. Prices are quoted F.O.B. Forest City, North Carolina. Buye(s financial ability to satisfy its purchasing respons ibilities contained herein is at all times subject to the approval of KCH and KCH may at any time require payment in advance, or other security or guarantees that invoices will be promptly paid when due. If Buyer fails to comply \vith any terms of payment or requirements to secure payment, KCH reserves the right to \vithhold further delivery or to cancel the Agreement whereupon any unpaid amount shall beoome immediately due. Progressive billing on presentation of KCH invoices is possible on very large oontracts, with prior written approval by a duly au thorized representative of KCH. Should Buyer delay payment beyond terms defined in this Agreement, interest \viii be charged at the rate of 1.5% per month on any unpaid portion of the selling price. 15. LIMITATION OF DAMAGES. In the event of a breach of this Agreemenl by KCH, the rights of Buyer are limited to a recovery of the amount paid to KCH for said goods and services. KCH shall in no event be liable for incidental, oonsequential, special and/or punitive damages resulling from its breach of any terms of the Agreement; nor shall KCH be liable for improper selection of goods and/or services, or for matters concerning coonseling and/or advice. No action for breach of any of the provisions of this Agreement may be maintained by Buyer against KCH unless commenced within one (1) year of the date of the accrual of such cause of action. 16. ASSIGNMENT. This Agreement may not be assigned by Buyer without prior written consent from a duly authorized representative of KCH. 17. CHOICE OF LAW AND FORUM. This Agreement shall be governed and construed in accordance with the laws of the State of North Carolina. Any civil litigation arising out of, or relating to, th is Agreement shall be oommended and maintained in the State of North Carolina. 18. SURVIVABILITY. If any provision of this Agreement shall be invalid or unenforceable under any applicable law. such provisions shall not apply in such instance, but the remaining provisions shall be given their full effect in accordance \vith their terms. 19. INDEMNIFICATION. Buyer shall defend, indemnify and hold harmless KCH against any and all losses claims, demands, actions, damages, attorney's fees and costs, however characterized, including but not limited to those involving personal injury, wrongful death, toxic tort, environmental impairment, property damage or diminution or value, business damage or diminution of value, or any other liabilities of any nature as a result of KCH's products, materials, representations (both implicit and explicit) and/or services. if, and only if, Buyer is at least partially at fault for said liabilities. Buyer shall also defend, indemnify and hold harmless KCH against any and all losses claims, demands, actions, damages, attorney's fees and cosls, however characterized, including but not limited to those involving personal injury or wrongful death ciaims or actions maintained as a result of injuries sustained by Buyer's employee within the course of his or her employment, if, and only if, the Buyer and/or Buye(s employee is at least partially al laull for said personal injury or wrongful death. No claim of indemnification of any nature, including but not limited to, express contractual, implied contractual, tort-based, restatement-based and/or statutory, shall lie in favor of Buyer and against KCH unless stated in wnting and signed by a duly authorized representative of KCH. 20. DEFAULT. In the event Buyer shall default on any of its obligations under this Agreement, Buyer shall be liable to KCH for reasonable attorney's fees, consulting fees, litigation fees and court costs associated with enforcing this Agreement and KCH may at its option, and without incurring any liability, elect to terminate th is Agreement and shall have a right to all damages sustained including, but not limited to, loss of profits. 21 . SECURITY INTEREST. Unless and until the products and/or services are fully paid for, KCH reserves the security interest to secure the unpaid balance of the price and all other obligations of the Buyer to KCH, however arising. Buyer hereby grants KCH Power of Attorney to execute and file on behalf of Buyer all necessary financing statements and other similar documents required to perfect security interest granted herein. 22. INSOLVENCY AND BANKRUPTCY. If Buyer shall be insolvent, cease dcing business, be subject to any bankruptcy, insolvency or reorganization statute or laws, or consent to the appointment or a receiver, trustee, liquidator or similar official such action shall, at the election of KCH, be deemed a default under this Agreement. KCH may elect to cease performing and cancel this Agreement with respect to any products, materials and/or services not delivered or received pnor to election. The foregoing shall be v.thout prejudice to recovery by KCH of damages for work performed and for loss of profits, materials and products delivered. 23. SERVICE CHARGES. Unless stated in writing by a duly authorized representative of KCH, this Agreement does not include charges for service visits, repair estimates, repair visits, field analysis, field adjustments, troubleshooting, modifications and related services and any oot-of·pocket expenses associated with such work. 24. CANCELLATION CHARGES. Minimum cancellation charges are 15% of the purchase price of the order but in no case less than $500.00. In the case of cancellation of an order after acknov.1edgment, the following % of the original Contract amount is due: After acknowtedgment but prior to drawn submittal 15% After drawing approval and receipt of material 60% After acknowledgment and drawing submittal 20% After fabrication begins 85-95% After dra\ving approval and prior to material receipt 30% At completion of fabrication 100%


AGENDA ITEM: DU0- 0:;J TAB: 3 CONSENT: ~ REGULAR: D

MEETING DATE: 05/23/18 DIVISION: UTILITY OPERATIONS

AGENDA TITLE: Consideration to approve a three-year contract renewal for Flowers Chemical Laboratories, in the estimated amount $137,500.00 annually.

ITEM BACKGROUND: This contract renewal is the first of two, three-year contract renewals for Flowers Chemical Laboratories for wastewater treatment and water reclamation independent laboratory services, for all FKAA wastewater treatment facilities, as required by Florida Department of Environmental Protection (FDEP).

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: Board approved Agenda Item DU0-07 at the June 24th, 2015 Board meeting which awarded the initial contract, along with the possibility of two, three-year renewals for wastewater treatment and water reclamation laboratory services, to Flowers Chemical Laboratories.

STAFF RECOMMENDATION (MOTION): Approve the first of two, three-year laboratory analysis contract renewals with Flowers Chemical Laboratories, in the estimated amount $137,500.00 annually.

SUPPLEMENTAL INFORMATION: Flowers Chemical Laboratories has agreed to honor existing pricing for the next three years if the contract is renewed, and Wastewater Operations has enjoyed a professional working relationship with Flowers Chemical Laboratories for many years.

DOCUMENTATION: Included: 0 Cost to FKM: $ 137,500.00 Cost to Others: $ NIA Total Cost: $ 137,500.00

DEPARTMENT: Wastewater Operation

Reviewed by: Internal Auditor:--+---

BOARD ACTION:

Approved: D Tabled: D

To-Follow: D BUDGETED:

Not Required:

Yes [KJ D

No ~

DEPARTMENT DIRECTOR APPROVAL: l General Counsel: }< ff Executive Director:~

Disapproved: D Recommendation Revised: D

Comments: ________________________________ __ _

Date: _______ _____ _ Recording Clerk: ---------------

@ f°LOW~l?~ Ct-111:MICU. LWO~TOC?ll:S INC.

PO Box 150597, Altamonte Springs FL 32715-0597 Phone:407·33~5984 / Fax: 407·260-<; l 10 EB3018 (Main Lab) 571 NW Mercantile Pl. Suite 111, Pon St. Lucio FL 34986 Phone: 772-343-8006 / Fax: 772-343-8089 E86S62 (South Lab) PO Box 1200, Madison FL 32341 Phone:850-973·6878 / Fax: 850-973-6878 E82405 (North Lab) 3980 Overseas Hwy Suite 103, Marathon FL 33050 Phone: 305-743-8$98 / Fax: 30S-743·8598 E35834 (Keys Lab)

May 8, 2018

Jay Miller Florida Keys Aqueduct Authority 3375 Overseas Hwy Marathon, FL 33050

RE: CONTRACT RENEWAL #FKAA-IFB-00 10-15 WASTE WATER TREATMENT INDEPENDENT ANALYSIS & REPORTING SERVICES

Dear Mr. Miller,

On behalf of Flowers Chemical Laboratories, Inc., we are pleased to extend the existing contract pricing and terms for the next three years, as indicated in the above named contract.

We appreciate the opportunity to provide analytical and sampling services to the Florida Keys Aqueduct Authority and we look forward to our continued relationship.

Feel free to contact me at 407-339-5984 x212 [email protected].

Sincerely,

Flowers Chemical Laboratories, Inc., rJ~ww-June S. Flowers Quality Systems Director Secretary of FCL

Cc: John W. Lindsey Jr. , FCL Business Development Director

a.\fW

iKCH ENGINEERED SYSTEMS





CORPORATE OFFICE AND MANUFACTURING


NORTH CAROLINA

PO BOX 1287 144 Industrial Dr.

Forest City , NC 28043 (828) 245-9836

Fax (828) 245-1437 [email protected]

www.KCHServices.com


Date Here

To Whom It May Concern:

I am writing this letter to inform the necessary persons that TSCJacobs, Inc. of Tampa, FL is the exclusive representative in the state of Florida for KCH Engineered Systems municipal market products. They are the sole source in the state of Florida for all products designed and manufactured by KCH Engineered Systems for the municipal market. The product line includes KCH corrosion resistant fans and KCH air quality control and water treatment systems.

This exclusivity applies to all new equipment sales as well as start-up, testing, maintenance and repair services provided by Jacobs Air Water Systems (JAWS), a sister company to TSCJacobs. The companies can be reached at the following addresses:

TSC-Jacobs, Inc. 11021 Countryway Blvd Tampa, FL 33626 813-888-5556

Jacobs Air Water Systems 11023 Countryway Blvd Tampa, FL 33626

813-854-2354

W e look forward to a continued relationship and service. Should you have questions or need additional information, please do not hesitate to contact me.

Respectfully,

AJu~ KCH Services, Inc. Contact - Dan Ching Municipal Odor Control & W ater Treatment Systems Email : [email protected] Ph# 828-7 48-7722

All Equipment is designed to meet the standards ofS.P.I. and the American Conference of Governmental Industrial Hygienists.

ACCEPTANCE OF THIS ORDER IS LIMITED TO THE A TT ACHED TERM AND CONDITIONS. WHICH TERMS AND CONDITIONS ARE HEREBY MADE A PART OF.

TO:

FROM:

DATE:

SUBJECT:

Florida Keys Aqueduct Authority 1100 Kennedy Drive Key West, Florida 33040 Telephone (305) 296-2454 www.fkaa.com

Board of Directors

MEMORANDUM

Kirk C. Zuelch, Executive Director~

May 15, 20 18

Executive Director's Report - Board of Directors Meeting May 23, 2018

Below is an outline of issues that I' ll be discussing in my Executive Director's report:

1. Florida Section of the American Water Works Drop Savers Poster Contest

J. Robert Dean Chairman District 3

Richard J . Toppin< Vice-Chairman District 2

David C. Ritz Secretary/Treasur, District 5

Antoinette M. App, District 4

Cara Higgins District 1

Kirk C. Zuelch Executive Director

The Authority annually sponsors the Drop Savers Poster Contest for all Monroe County schools. The posters have a water conservation theme. We recognize division winners based on grade groups from the schools. We have invited the six overall Monroe County and State winners to our Board Meeting to recognize their achievements.

2. Florida Power and Light Update Mr. Lee Hefty, Miami-Dade County Director Division of Enviromnental Resources Management (DERM), will be updating the Board on the status of the Florida Power and Light Consent Order and answering any questions the Board has regarding the Miami-Dade/FPL Wastewater Reuse Agreement.

2018 WATER CONSERVATION POSTER CONTEST

Monroe County Division Winners Awards Presentation

American Water Works Association

AWWAAFlORIDA

Division 1 (K-1st Grade) Winner

Jasmine Lavryk Kindergarten, The Basilica School

Teacher: Nancy La Re

Division 2 (2nd_3rd Grade) Winner

Joe Melvin 2nd Grade, Big Pine Academy

Teacher: Sarah Butler

Division 3 (4th_5th Grade) Winner

Evelina Zaute 5th Grade, Horace O'Bryant School

Teacher: Ashlie Hood

I I \ "'~ .. JI

Division 4 ( 6th_gth G d ra e) Winner ~ta I

Angelina Bello 7th G d ra e, Key Largo School

Teacher: Kirsten Burns

Division 4 (6th_gth Grade) Runner Up

Makayla Dudley 7th Grade, Key Largo School

Teacher: Kirsten Burns

Save Wa.ter,

Su.\Je Life

F\:N}) Su~e

1nt WOVlCDc1

Division 5 (H igh School) Winner State First Place Winner

Mackenzie Emrich 11th Grade, Coral Shores High School

Teacher: Carmen Kelley SAVE WATER

The Division Winners were on display in each of FKAA's Customer Service Offices during National Drinking Water Week, May 7--13, 2017.

Tavernier Customer Service Team Sue Reich, Barbara Baker and Christi Meder

Key West Customer Service Team Back Row: Pam Oropeza, Amanda Blanco, Diancy Fundora, Raquel Ladino Middle Row: Ashley Roberts, Amanda Malott, Olivia Reyes Front: Ariel Sanchez

Marathon Customer Service Team Ashley Schindler, Sherry Alana, Yusi Bonachea


AGENDA ITEM: OOC- 6 / CONSENT: D REGULAR: [KJ

MEETING DATE: May 23, 2018 DIVISION: OFFICE OF COUNSEL

AGENDA TITLE: Consideration to approve a resolution 18-05 of the Florida Keys Aqueduct Authority, establishing its intent to reimburse certain costs incurred relating to water projects from proceeds of a future taxexempt financing; authorizing the Deputy Executive Director as the Authority's compliance officer for purposes of preparing policies and procedures for post issuance compliance with the internal revenue code, as amended; providing certain other matters in connection therewith; and providing an effective date.

ITEM BACKGROUND: The Authority issues new debt from time to time to finance capital projects. In order to provide for reimbursement for any capital costs incurred prior to the actual issuance of debt, the board must pass a resolution to assure compliance with rules and regulations regarding proceeds from the issuance of bonds. This resolution provides that compliance.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: The Board previously adopted a reimbursement resolution on ~pr;-/ .. ~ 201117.

STAFF RECOMMENDATION (MOTION): Approve a resolution of the Florida Keys Aqueduct Authority, establishing its intent to reimburse certain costs incurred relating to water projects from proceeds of a future taxexempt financing; authorizing the Deputy Executive Director as the Authority's compliance officer for purposes of preparing policies and procedures for post issuance compliance with the internal revenue code, as amended; providing certain other matters in connection therewith; and providing an effective date.


DOCUMENTATION: lnctuded: D Cost to FKAA: $ ------Cost to Others: $ _____ _ Total Cost: $ _ _ __ _

DEPARTMENT:


Not Required:

Yes D

D No CJ

,a=RECTOR APPROVAL:

DIVISION DIRECTOR APPROVAL:. _ _ ~ ..... ~=--'---"f ..... [;fa-~~---:...;;.._------------General Counsel: V)r£ Executive Director.~ Reviewed by: Internal Auditor. _ __ _

BOARD ACTION:

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

Comments:. _ _________ __________ ______________ _

Date:. ___ ____ _____ _ Recording Clerk:. _ _ ____________ _

RESOLUTION NO. 18-05

A RESOLUTION OF THE FLORIDA KEYS AQUEDUCT AUTHORITY, ESTABLISHING ITS INTENT TO REIMBURSE CERTAIN COSTS INCURRED RELATING TO WATER PROJECTS FROM PROCEEDS OF A FUTURE TAX-EXEMPT FINANCING; AUTHORIZING THE DEPUTY EXECUTIVE DIRECTOR AS THE AUTHORITY'S COMPLIANCE OFFICER FOR PURPOSES OF PREPARING POLICIES AND PROCEDURES FOR POST ISSUANCE COMPLIANCE WITH THE INTERNAL REVENUE CODE, AS AMENDED; PROVIDING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, the Board of Directors of the Florida Keys Aqueduct Authority (the "Issuer")

has determined that the future need exists to issue bonds in order to finance certain capital

improvements for the water system consisting of the water projects listed for the years 2018

through 2022 on the Issuer's 5-year Capital Improvement and Capital Financing Plan on file

with the Issuer ( collectively, the "Project"); and

WHEREAS, the Issuer desires to preserve its right to reimburse for eligible costs of any

Projects from the proceeds of future bond issues; and

WHEREAS, in order to maintain preferential tax status, tax-exempt bonds of the

Authority are subject to certain federal tax law requirements both upon issuance of the bonds

and on an ongoing basis for the life of the bond issue; and

WHEREAS, the ongoing nature of post-issuance tax compliance concerns requires

issuers such as the Authority to actively monitor compliance throughout the entire period

bonds remain outstanding; and

WHEREAS, the Internal Revenue Services (the "IRS") actively encourages issuers such as

the Authority of tax-exempt and tax-advantaged obligations to adopt effective post-issuance

compliance procedures;

NOW, 1HEREFORE, BE IT RESOLVED BY TI-IE BOARD OF DIRECTORS OF THE

FLORIDA KEYS AQUEDUCT AUTHORITY THAT:

SECTION 1. AUTHORITY. This Resolution (hereinafter called the "Resolution") is

adopted pursuant to the provisions of the Florida Constitution, Chapter 76-441, Laws of Florida,

as amended and supplemented, and other applicable provisions of law.

SECTION 2. DECLARATION OF INTENT. The Issuer hereby expresses its intention to

be reimbursed from proceeds of a future tax-exempt financing for all or a portion of

expenditures to be paid by the Issuer for the purpose of equipping, constructing and acquiring

the Project. Pending reimbursement, the Issuer expects to use funds on deposit in the Water

Revenue Fund and other funds on hand available to pay such costs including but not limited to

capital expenditures, costs of design and engineering, and other costs associated with the

Project. It is reasonably expected that the total amount of debt to be incurred by the Issuer with

respect to the Project will not exceed [$100,000,000]. This Resolution is intended to constitute a

"declaration of official intent" within the meaning of Section 1.150-2 of the Income Tax

Regulations (the "Regulations") with respect to the bonds to be issued to finance the Project.

SECTION 3. POST ISSUANCE COMPLIANCE. The Authority recognizes that the IRS

intends for issuers of tax-exempt bonds such as the Authority to take a more proactive role in

monitoring compliance with the Internal Revenue Code and Regulations after the issuance of

bonds. Therefore, in order to support the compliance initiatives described herein, the Authority

2

hereby authorizes the Deputy Executive Director to prepare, or cause to be prepared by Bond

Counsel, policies and procedures of the Authority for monitoring compliance with the Code

and Regulations (the "Compliance Policy"). By authorizing this Compliance Policy and by

requiring staff to adhere to the Compliance Policy, the Authority hereby formalizes the

appropriate procedures and documents existing practices for complying with the Code and

Regulations for its bonds.

SECTION 4. SEVERABILITY. If any one or more of the provisions of this Resolution

shall for any reason be held illegal or invalid, such illegality or invalidity shall not affect any

other provision of this Resolution, but this Resolution shall be construed and enforced as if such

illegal or invalid provision had not been contained therein.

SECTION 4. REPEALING CLAUSE. All resolutions or orders and parts thereof in

conflict herewith to the extent of such conflicts, are hereby superseded and repealed.

SECTION 5. EFFECTIVE DATE. This Resolution shall take effect immediately upon its

adoption this 23rd day of May, 2018.

(SEAL)

ATTEST:


By:. _ _________ ____ _

Title: J. Robert Dean, Chairman

By:. ___ ____ _ ____ ~

Title: David C. Ritz, Secretary/freasurer

3


AGENDA ITEM: DOA-01 CONSENT: D

DIVISION: Administration MEETING DATE: May 23, 2018

AGENDA TITLE: Summary of financial information for October 2017 through April 2018.

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


STAFF RECOMMENDATION (MOTION): Informational only


58.33% 58.10% 54.20%

9 2

-0.30% 19.00%

REGULAR: Ii]

DOCUMENTATION: Included: D To-Follow: D BUDGETED:

Not Required: D Cost to FKAA: Cost to Others:

$ $

Yes[!] No O Total Cost: $ _____ _

DEPARTMENT: Finance DEPARTMENT DIRECTOR APPROVAL:

Reviewed by: Internal Auditor: ___ _

DIVISION DIRECTOR APPROVAL:·---------.....+-------------

Executive Directoc~

BOARD ACTION:

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

Comments: ·--------- - ----- ---- --------- --- -

Date: ____ _____ __ _ Recording Clerk: _ ____________ _

FLORIDA KEYS AQUEDUCT AUTHORITY Financial Analysis

.'A.yri{ 30, 2018

Balance sheet summary

Cash, cash equivalents and investments Capital assets, net of depreciation Other assets Total assets

Deferred outflow of resources

Long-term debt (including current portion) Other liabilities Total liabilities

Deferred Inflow of resources

Net assets

Current month-end

$ 42,904,096 266,003,136

15,803,079 324,710,311

37,254,401

203,556,821 10,868,524

214,425,345

1,678,306

$ 145,861,061

Increase (decrease) from last month

3.9%

0.3%

7.2%

0.1%

0.00%

0.0%

-3.6%

-0.2%

0.00%

0.7%

Revenue and expense summary

Net operating revenues Interest income Other income Total income Operating expenses (less depreciation) Depreciation Interest expense Other expenses Total expenses Excess of revenues over expenses System development fees and other contributions Change in net assets

Month-to-date $ 5,810,538

80,990 755,641

6,647,169 3,689,808

186,805 (457,727)

75,541 3,494,427 3,152,742

211,665 $ 3,364,407

Net Operating Revenues $7,500,000 .. ------------------..

$6,500,000 11--------------------1

$2,500,000

$1,500,000 ._ __________________ ..

,l,l.s,/' .S- .~1~

Increase (decrease) from same month

last year 10.7%

690.8%

1285.7%

24.0%

21.3%

17.3%

-9.9%

4.5%

-61.0%

35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

$

$

Increase (decrease) from last year-end

-15.3%

-0.7%

15.6%

-2.1%

-0.02%

-0.3%

-33.8%

-3.7%

0.00%

0.8%

Year-to-date 35,759,948

373,031 1,400,662

37,533,641 23,553,221

2,566,224 3,240,089

150,033 29,509,567

8,024,074 2,049,573

10,073,647

: : : : : ·: ···:::?t//\/ .. . .. . . . .. . . . .. . . . . .. . . . . . . .. . . . . . .. . ..

: :: : :: ::: ::: ::; : ; : ; ~~ ~ ~ ~~~ ~ ~~ ~~~ ~~~ ~~~ ~~ ~ ~~~~~~~

:>t(\i::)it:it:i:i:)it:i ·.·.·.· .·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.· .. . .. .............. . . . . ............ . . .. .. . ....... . .... ...... .. . . . . . . . . . . . . . . . ...........

Increase (decrease) from year-to-date

last year -0.3%

112.0%

102.6%

2.0%

19.0%

124.4%

9809.4%

11.3%

-12.5%

Capital Expenditures Last ten fiscal years

<:f'o ~·if' ,;,•~ ')•~ #" #' t'

1 ~ _ ::18 _:_ 2017 --2016 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Financial indicators

W Unrestricted net assets • Current cash and investments to current liabilities

# months operating expenses in cash and investments Working capital (current assets less current llabllltles> to total assets Net assets to total assets Average rate of return on investments (year to date) % of total annual budgeted revenue earned (year to date) % of total annual budget expended (year to date)

W Total capital expenditures (year-to-date) ll Total capital improvement commitments

5/3/201 8

Current month-end

$ 9,653,844 2.4 3.9 0.1 0.4

1.35% 58.1% 54.2%

$ 5,162,256 $ 6,782,784

$

$ $

Last month-end Last ear-end 9,014,983 $ 9,746,645

2.4 2.1 4.6 2.3 0.1 0.1 0.4 0.4

1.31% 0.73% 48.5% 103.8% 45.9% 100.8%

3,409,352 $ 12,202,582 7,373,349 $ 8,374,324

Assets Current assets Unrestricted current assets Cash and cash equivalents Investments Recel\lables:

Accounts - customers Accounts - other Interest Current portion of assessments

Material and supplies Prepaid expenses and other current assets Total unrestricted current asset s Restricted current assets Cash and cash equivalents Investments Interest rate swap collateral

Tota l restricted current assets

Total current .asset s

Noncurrent assets Restricted noncurrent assets Cash and cash equivalents Investments Total restricted noncurrent assets

Capital assets Capital assets In service Construction in progress Less accumulated depreciation

STATEMENT OF NET POSITION April 30, 2018

Capital asset s, net of accumulat ed depreciation

Assessments receivable, net of current portion Total noncunont assets

Total assets

Deferred outflow of resources Accumulated change in fair value of hedging derivatives

Deferred amount on debt refundings

Pension

Navy Wastewater

Liabilities Current liablilties Current liabilrties payabkl from unrestricted assets Accounts payable Accrued wages and benefits Unearned receipts other liabilities Total current liabilities payabkl from unrestricted asset s Current liabilittes payable from restricted assets

Customer deposits Interest payable Advances from other governments Current portion of credit due to US government Current portion of bonds payable Curent portion of compensated absenses Total current liabilities payable from rest ricted assets

Total current liabilities

Long-term liabilities Credit due to US government Bonds payable Derivative instrument - swap Compensated absences Not OPEB obligation Net pension liabilities

Less current portion Total long-term liabilities

Total liabilities

Deferred Inflow of resources Pension

Net position Invested in capital assets, net of related debt Restricted: Debt service Capff:al projects Other purposes Unrestricted

Total net position $

Florldi Keys Aqueduct Authority

11 ,598,068 20,000,000

5,384,845 3,567,126

238,655 341,919

2,494,341 1.329 448

44,954,402

8,393,921

8 393 921

53,348 323

2,912,107

2,912,107

504,173,738 20,713,833

(258,884,435)

266,003 136

2 446,745 271 361,988

324,710,311

10,838,557

2,528,525

8,691 ,842

15.195,477

37,254,401

1,524,665 593,930

2,649 800 4 768,395

2,912,107 427,515

2,760,507 937,646

4,368,1 74

305, 216 11,711165

16,479 560

28,223,396 137,058,022

10,838,557 3,052,156 2 ,675 ,695

21,708,995 203,556,821

(5,611,036) 197 945 785

214,425,345

1,678,306

129,284,277

2,964,474 1,046,359 2,912,107 9,653,844

145,8611061

Florida Keys Aqueduct Authority

STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS For the seven months ending April 30, 2018

Month-to-date Year-to-date Increase Increase

This :tear Operating revenue

Last :tear (decrease) This :tear Last :tear (decrease)

Metered revenue water: Residential $ 2,668,100 $ 2,187,987 $ 480,113 $ 15,020,811 $ 15,326,557 $ (305,746) Commercial 1,798,991 1,718,004 80,987 11 ,569,276 11,715,994 (146,718) U.S. Navy 84,957 111 ,162 (26,205) 645,551 662,967 (17,416) Other governmental 1,146 (1,146) (30) 73,929 (73,959) Senior citizens 40,542 31,611 8,931 260,884 213,030 47,854 Reclaimed water 10,267 10,638 Metered revenue wastewater:

(371) 59,772 72,183 (12,411)

Residential 532,102 538,610 (6,508) 3,610,433 3,261,357 349,076 Commercial 79,580 82,390 (2,810) 526,155 499,901 26,254 U.S. Navy 122,114 155,283 (33,169) 908,916 891,280 17,636 Other governmental 503 737 (234) 3,630 5,957 (2,327) Senior citizens 15,467 11 ,378 4,089 89,737 54,985 34,752

Total metered revenue 5,352,623 4,848,946 503,677 32,695,135 32,778,140 (83,005) Other operating revenue 511,136 429,552 81,584 3,307,896 3,322,439 (14,543)

Total operating revenue 5,863,759 5,278,498 585,261 36,003,031 36,100,579 (97,548) Less: abatements (53,221) (29,685) (23,536) (243,083) (233,061) (10,022)

Net operating revenue 5,810,538 5,248,813 561,725 35,759,948 35,867,518 (107,570)

Operating expenses Source of supply 181 ,001 43,925 137,076 464,982 340,953 124,029 Water treatment 304,224 305,386 (1 ,162) 2,189,938 2,131,392 58,546 Transmission 548,714 462,459 86,255 3,203,169 2,941,653 261,516 Distribution 782,780 602,573 180,207 5,666,068 4,273,248 1,392,820 Customer accounts 314,253 275,378 38,875 1,966,540 1,943,829 22,711 General and administration 1,446,628 1,228,841 217,787 9,358,948 8,392,815 966,133 Wastewater treatment 112,208 117,537 (5,329) 703,576 781,695 (78, 119) Wastewater collection 186,805 159,222 27,583 2,566,224 1,143,469 1,422,755 Depreciation 1,424,761 1,816,882 (392,121) 8,787,863 9,035,066 (247,203)

Total operating expenses 5,301,374 5,012,203 289,171 34,907,308 30,984,120 3,923,188

Utility operating income 509,164 236,610 272,554 852,640 4,883,398 (4,030,758)

Non-operating revenues (expenses) Interest income 80,990 10,242 70,748 373,031 175,960 197,071 Other income 674,651 44,290 630,361 1,027,631 401 ,305 626,326 Gain (loss) on disposal of assets and inventory 9,294 9,294 243,375 2,456 240,919 Interest expense (457,727) (508,182) 50,455 (3,240,089) (3,169,455) (70,634) Other financing fees (75,541) (65,207) (10,334) (150,033) (216,863) 66,830 Bond issuance costs (23,467) 23,467 Amortization Total non-operating revenues (expenses) 231,667 (518,857) 750,524 (1,746,085) (2,830,064) 1,083,979

Net income before contributions 740,831 (282,247) 1,023,078 (893,445) 2,053,334 (2,946,779) Capital contributions 211 ,665 542,339 (330,674) 2,049,573 2,341,669 (292,096)

Change in net position $ 952,496 $ 260,092 $ 692,404 $ 1,156,128 $ 4,395,003 $ (3,238,875) Net position, beginning of period 144,908,565 144,704,933

Net position , end of period $ 145,861,061 $ 145,861,061

5/3/2018


SCHEDULE OF OPERATING EXPENSES For the seven months ending April 30, 2018

Month-to-date Year-to-date Increase Increase

This lear Last lear (decrease) This lear Lastlear (decrease)

Salaries $ 1,570,731 $ 1,400,195 $ Salaries (capitalized)

170,536 $ 10,484,984 $ 9,865,771 $ 619,2 13

Overtime 72,100 62,880 9,220 462,210 314,538 147,672 Overtime (capitalized) Retirement 154,240 138,962 15,278 1,231 ,085 1,021 ,587 209,498 Payroll taxes 126,005 115,516 10,489 827,662 787,464 40,198 Employee health insurance 340,982 325,080 15,902 2 ,269,468 2,092,359 177,109 Other benefits 15,058 6,041 9,017 73,143 44,898 28,245 Electricity 260,804 266,381 {5,577) 1,622,261 1,619,526 2,735 Fuel for power production 12,366 4,006 8,360 90,395 32,596 57,799 Chemicals 163,201 152,413 10,788 982,424 1,075,463 (93,039) Maintenance and materials 464,063 372,414 91 ,649 2,524,885 2,118,247 406,638 Maintenance and materials - construction 8,468 (37,986) 46,454 227,683 164,484 63,199 Emergency materials and suppies 24,862 24,862 2,293,442 2,293,442 Engineering services 11 ,212 2,130 9,082 46,472 10,328 36,144 Accounting and auditing services 14,829 (14,829) 88,489 79,500 8,989 Legal services 86 3,376 (3,290) 2,874 12,416 (9,542) Other consulting and support services 149,097 95,786 53,311 643,779 659,495 (15,716) Outsourced operations 88,915 47,863 41,052 347,879 359,042 (1 1,163) Sludge removal 17,019 19,866 (2 ,847) 61 ,572 74,838 (13,266) Rental of building - real property 1,328 {1 ,328) 4,638 10,565 (5,927) Rental expense - equipment 1,506 1,624 (118) 16,688 14,981 1,707 Transportation expense 49,510 6,415 43,095 234,145 168,356 65,789 Insurance-vehicle 5,585 6,526 (941) 38,927 45,257 (6,330) V ehicle repairs (net of insurance reimbursements) 25,000 25,000 {2,696) 7,086 (9,782) Insurance-general liabilities 9,363 8,563 800 67,177 59,361 7,816 General liability claims (net of insurance reimbursements) 25,000 25,000 25,979 10,265 15,714 Insurance-workers' compensation 23,946 22,346 1,600 167,624 156,420 11 ,204 Workers compensation (net of insurance reimbursements) 3,786 3,786 35,686 23,273 12,413 Insurance-other 86,211 69,893 16,318 520,122 509,952 10,170 Other c laims and damages 2,944 2,944 (231 ,532) (290) (231,242) Advertising 8,063 4,52 1 3,542 31 ,499 27,378 4,121 Bad debt expense 10,000 6,750 3,250 37,140 47,250 (10,110) Office supplies 7,407 9,391 (1 ,984) 45,878 45,669 209 Bank charges 60,925 37,649 23,276 324,015 291 ,303 32,7 12 Cashiers over/short (1) (1) 42 (53) 95 Other utilities and technical services 53,436 40,110 13,326 432,977 259,734 173,243 Postage 1,262 254 1,008 12,181 15,777 {3,596) Travel 13,514 3,047 10,467 39,876 30,559 9,317 Training 5,410 1,468 3,942 22,223 19,210 3,013 Miscellaneous 8,701 12,700 (3,999) 84,628 81 ,603 3,025 Public Information and outreach 2,581 8,352 (5,771 ) 12,604 29,069 (16,465) Misc. Freight 6 16 187 429 2 ,725 3,847 (1 ,122) Less: administrative overhead (capitalized) (7,361) (35,555) 28,194 (83 ,808) (240,070) 156,262

Total operating expenses before depreciation 3,876,6 13 3,195,32 1 681 ,292 26,119,445 21 ,949,054 4,170,391 Depreciation 1,424,761 1,816,882 (392,121 ) 8,787,863 9,035,066 (247,203)

Total operating expenses $ 5,301 ,374 $ 5,012,203 $ 289,171 $ 34,907,308 $ 30,984,120 $ 3,923,188

513/2018


BUDGETARY COMPARISON SCHEDULE For the seven months ending April 30, 2018

Budgeted exeenditures Actual exeenditures % of budget Budget Original Adjusted Month-to-date Year-to-date exeended remaining

Capital expenditures: Additions to capital assets $ 3,732,300 $ 4,361,000 $ 366,444 $ 1,521 ,361 34.9% $ 2,839,639 Salaries (capitalized) 1,033,800 1,033,800 59,581 311,379 30% 722,421 Overtime (capitalized) 8,607 19,537 na (19,537) Total Caeital Outlal 4,766,100 5,394,800 434,632 1,852,277 3,542,523

Operating expenses: Personnel services Salaries 18,932,100 18,932,100 1,570,731 10,484,984 55% 8,447,116 Overtime 483,600 483,600 72,100 462,210 96% 21,390 Retirement 1,797,400 1,797,400 154,240 1,231 ,085 69% 566,315 Payroll taxes 1,564,500 1,564,500 126,005 827,662 53% 736,838 Employee health insurance 3,600,000 3,600,000 340,982 2,269,468 63% 1,330,532 Other benefits 229,000 229,000 15,058 73,143 32% 155,857 Total eersonnel services 26,606,600 26,606,600 2,279,116 15,348,552 11,258,048

Other operating expenses Electricity 3,192,500 3,192,500 260,804 1,622,261 51% 1,570,239 Fuel for power production 83,500 83,500 12,366 90,395 108% (6,895) Chemicals 2,157,700 2,157,700 163,201 982,424 46% 1,175,276 Maintenance and materials 3,975,900 4,327,900 464,063 2,524,885 58% 1,803,015 Maintenance and materials - construction 8,468 227,683 na (227,683) Emergency materials and suppies 1,407,500 24,862 2,293,442 163% (885,942) Engineering services 290,000 290,000 11,212 46,472 16% 243,528 Accounting and auditing services 89,500 89,500 88,489 99% 1,011 Legal services 30,000 30,000 86 2,874 10% 27,126 Other consulting and support services 1,579,700 1,579,700 149,097 643,779 41% 935,921 Outsourced operations 1,681,300 1,896,300 88,915 347,879 18% 1,548,421 Sludge removal 294,000 294,000 17,019 61,572 21% 232,428 Rental of building - real property 14,000 10,400 4,638 45% 5,762 Rental expense - equipment 63,000 59,400 1,506 16,688 28% 42,712 Transportation expense 495,600 502,800 49,510 234,145 47% 268,655 Insurance-vehicle 110,000 110,000 5,585 38,927 35% 71,073 Vehicle repairs (net of insurance reimbursements) 25,000 (2 ,696) na 2,696 Insurance-general liabilities 137,000 137,000 9,363 67,177 49% 69,823 General liability claims (net of insurance reimbursements) 25,000 25,979 na (25,979) Insurance-workers' compensation 270,000 270,000 23,946 167,624 62% 102,376 Workers compensation (net of insurance reimbursements) 3,786 35,686 na (35,686) Insurance-other 993,300 993,300 86,211 520,122 52% 473,178 Other claims and damages 2,944 (231 ,532) na 231 ,532 Advertising 69,000 69,000 8,063 31 ,499 46% 37,501 Bad debt expense 81,000 81 ,000 10,000 37,140 46% 43,860 Office supplies 144,000 144,000 7,407 45,878 32% 98,122 Bank charges 520,000 520,000 60,925 324,015 62% 195,985 Cashiers over/short (1) 42 na (42) Other utilities and technical services 819,900 819,900 53,436 432,977 53% 386,923 Postage 38,300 38,300 1,262 12,181 32% 26,119 Travel 162,400 162,400 13,514 39,876 25% 122,524 Training 153,400 153,400 5,410 22,223 15% 131 ,177 Miscellaneous 163,000 163,000 8,701 84,628 52% 78,372 Public Information and outreach 129,000 129,000 2,581 12,604 10% 116,396 Misc. Frei9ht 10,000 10,000 616 2,725 27% 7,275 Total other oeeratlng exeenses 17,747,000 19,721,500 1,604,858 10,854,701 8,866,799

Total operating expense budget 44,353,600 46,328,100 3,883,974 26,203,253 20,124,847

Total operating budget 49,119,700 51,722,900 4,318,606 28,055,530 23,667,370

4,318,606 28,055,530 I 54.2%1 $ 23,667,370 Less: Capital expenditures (434,632) (1,852,277)

Administrative overhead capitalized (7,361) (83,808) Add: Depreciation 1,424,761 8,787,863 Total actual operating expenses

$ 5,301,374 $ 34,907,308

Florida Keys Aqueduct Authority Cash Summary April 30, 2018

Cash

Investments

Total cash and investments

Externally restricted by statute or covenant Debt service reserves

Monroe County funds advanced for wastewater construction

Grant match for on-site wastewater project

Bond proceeds held for future projects

Cash and investments at board's discretion

Board restrictions Contingency fund for unanticipated losses

Operating reserve (3 months of minimal operating expenses)

Cash and investments after board restrictions

Other set asides Customer deposits

Reserve for self-retained health care claims

Cash and investments available for capital projects Capital project contract balances outstanding funded from reserves

Cash and investments available for future projects

$

$

22,904,095.68

20,000,000.00

42,904,095.68

(4,564,812.72)

(3,374,912.31)

(1,296,050.00)

(2,070,253.00)

31,598,067.65

(2,982,531.81)

(9,000,000.00)

19,615,535.84

(2,912,107.00)

{1,050,282.34)

15,653,146.50 (6,782,783.94)

8,870,362.56


BUDGET AMENDMENTS AND TRANSFERS

For the year ending September 30, 2018

Original Budget Adjusted

budget Amendments transfers budget Capital expenditures: Utility plant in service $3,732,300 $ 614,700 $ 14,000 $ 4,361,000 Salaries (capitalized) 1,033,800 1,033,800 Overtime (caeitalized)

Total operating capital expenditures 4,766,100 614,700 14,000 5,394,800

Operating expenses: Personnel services

Salaries 18,932,100 18,932,100 Overtime 483,600 483,600 Retirement 1,797,400 1,797,400 payroll taxes 1,564,500 1,564,500 Insurance 3,600,000 3,600,000 Other 229,000 229,000 Total personnel services 26,606,600 26,606,600

Other operating expenses

Electricty 3,192,500 3,192,500 Fuel for power production 83,500 83,500 Chemicals 2,157,700 2,157,700 Maintenance and materials 3,975,900 366,000 (14,000) 4,327,900 Emergency materials and supplies 1,407,500 1,407,500 Engineering services 290,000 290,000 Accounting and auditing services 89,500 89,500 Legal services 30,000 30,000 outsourced operations 1,681 ,300 215,000 1,896,300 Other consulting and support services 1,579,700 1,579,700 Sludge removal 294,000 294,000 Rent expense-building 14,000 14,000 Rent expense-equipment 63,000 63,000 Transportation expenses 495,600 495,600 Insurance - vehicle 110,000 110,000 Insurance - general liabilities 137,000 137,000 Insurance - workers' compensation 270,000 270,000 Insurance - property and flood 993,300 993,300 Advertising 69,000 69,000 Bad debt expense 81 ,000 81,000 Office supplies 144,000 144,000 Other utilities and technical services 819,900 819,900 Postage 38,300 38,300 Travel 162,400 162,400 Training 153,400 153,400 Miscellaneous other 163,000 163,000 Bank charges 520,000 520,000 Public information and outreach 129,000 129,000 Miscellaneous-freight 10,000 10,000 Total other operating expenses 17,747,000 1,988,500 (14,000) 19,721,500

Total operating expense budget 44,353,600 1,988,500 (14,000) 46,328,100

Total operating budget $ 49,119,700 $ 2,603,200 $ - $ 51,722,900 prepared by Denise Preuss


BUDGET AMENDMENTS


Date of

Board

Amendment# Approval Account Description and justification Amount

11/15/2017 1-4108-10100-99 Purchase of new vehicles 345,000 11/15/2017 1-4208- 10100-99 Purchase of new vehicles 95,500

2 12/20/2017 1-4001-10100-99 Purchase of new gas fueling stations 33,600 2 12/20/2017 1-5060-10100-99 Purchase of new gas fueling stations 13,500 3 1/31/2018 1-4214-62003-14 Emergency Services & Repairs to Infrastructure 627,100 3 1/31/2018 1-4101-62003-08 Emergency Services & Repairs to Infrastructure 104,500 3 1/31/2018 1-5001-62003-04 Emergency Services & Repairs to Infrastructure 147,800 4 1/31/2018 1-4201-10100-99 Purchase of backhoe 87,300 5 1/31/2018 1-5060-10100-99 Emergency purchase of a Centrifuge Control System 39,800 6 1/31/2018 1-4101-62003-08 FlaWarn Mutual Aid Agreement provided after Hurricane Irma 170,700 7 2/28/2018 1-2021-63500-10 Purchase of e-builder, a web based cons! mngmt software 215,000 8 2/28/2018 1-4301-62003-08 Emergency Services & Repairs to Infrastructure 17,900 8 2/28/2018 1-4214-62003-14 Emergency Services & Repairs to Infrastructure 95,000 8 2/28/2018 1-2021-62003-10 Emergency Services & Repairs to Infrastructure 244,500 9 3/28/2018 1-2027-62001-08 Water Meter Interface units 366,000

Total amendments $ 2,603,200

prepared by Denise Preuss


BUDGET TRANSFERS


Account# Accountdescriotion Oct Nov Dec Jan Feb Mar Apr Mav Jun Jul Aua Seo Total 10100 Utilitv plant in service $ 7,000 $ 7,000 $ 14,000 60101 Salaries . 60102 Utilitv olant in service . 60103 Overtime . 60104 Overtime (caoitalized)

60401 Retirement . 60402 oavroll taxes . 60403 Insurance . 60404 Other . 61500 Electrictv . 61600 Fuel for cower oroduction . 61800 Chemicals . 62001 Maintenance and materials (7,000) (7,000l (14,0001 63100 Em:iineerina services . 63200 Accountina and auditina services . 63300 Leaal services . 63400 Other consultina and support services . 63500 outsourced ooerations . 63600 Sludae removal . 64100 Rent exoense-building . 64200 Rent expense-eauipment . 65000 Transoortation expenses . 65601 Insurance - vehicle . 65701 Insurance - aeneral liabilities . 65801 Insurance - workers' compensation . 65901 Insurance - orooertv and flood . 66000 Advertising . 67000 Bad debt expense . 67501 Office suoolies . 67502 Bank charges . 67505 Other utilities and technical services . 67506 Postaae . 67507 Travel . 67509 Trainina . 67510 Miscellaneous other . 67511 Communitv Relations . 67512 Water conservation and outreach . 67515 Miscellaneous-freiaht .

$ . $ - $ . $ . $ - $ - $ . $ - $ - $ - $ - $ - $ .

prepared by Denise Preuss

Florida Keys Aqueduct Authority Capital Improvement Plan and Debt Service Budget to Actual Comparison April 30, 2018

Capital Improvement Plan

Distribution replacement Transmission main improvements C-905 Key Largo Transmission main replacements-Grassy Key, lslamorada Cathodic protection, metal piping, tanks Valve replacement program-Key West Gateway meter reading data collectors Stock Island seawater reverse osmosis plant demo/replace water storage tanks-C69 Trumbo Point Collection system improvement-Key Haven Connection of Navy system to Big Coppitt Onsite wastewater program

Storage tank flow control Collection system R/R system wide Swim Well

Design of emergency operation plans Hurricane IRMA Fema projects Capital salaries to be allocated

Debt Service

Interest expense Principal payments

Remaining

Budgeted costs Actual costs budget

4,000,000 4,000,000

500,000 500,000 100,000 350,000 400,000 550,000

4,000,000 1,100,000

500,000

250,000

1,280,873 865,548

1,080 6,756

78,230

58,460 1,866,811

909,451

633 36,106

38,865 7,442

3,483 8,518

2,719,127 3,998,920

493,244 493,244

100,000 271,770

400,000 491,540

2,133,189 190,549 499,367 (36,106) 250,000 (38,865)

{7,442) (3,483} (8,518)

$ 16,250,000 $ 5,162,256 $ 11,946,536

$ 4,519,000 $ 4,345,000

3,240,089 $ 1,278,911

4,345,000

$ 8,864,000 $ 3,240,089 $ 5,623,911


AGENDA ITEM: DOA- O;;i.. CONSENT: D REGULAR: . ~

MEETING DATE: May 23, 2018 DIVISION: Administration

AGENDA TITLE:

Summary of contractual commitments through April 30, 2018.

ITEM BACKGROUND:


As requested by the Board of Directors, task order approvals by the Executive Director in the previous month are included in this report and highlighted in yellow.

STAFF RECOMMENDATION (MOTION):


DOCUMENTATION: Included: D Not Required: D Cost to FKAA: $

$

To-Follow: D BUDGETED: YesD No [:=J

Cost to Others: Total Cost: $ _ ___ _

DEPARTMENT: Finance DEPARTMENT MANAGER APPROVAL: Digitally signed by Kerry

K Sh lb Shelby erry e Y Date: 2018.05.03 16:09:38

DIVISION DEPUTY EXECUTIVE DIRECTOR APPROVAL: -o4·oo·

Reviewed by: Internal Auditor Geraa Cwnsel: ~ Executive Directo,r

BOARD ACTION:

Approved: n Tabled: ll Disapproved: D Recommendation Revised: D

Comments: ___________ ____ _ _ ___ ________ _ _ _

Date: ___________ _ Recording Clerk: ____ _ _ _____ _ _

flcrldov 1<.ey~Aquedu.ct-A~ Summary of contractual commitments Mo~• t,-~30, :WU

Vendor name Contract # Project Approved Awarded contract Amendments J Total paid to date

Remaining Total FKAA Capital amount change orders commitment Commitments

Water construction contracts S/3/2011

J.A. l.3Rocco Enterprises 1094-08 Ocean Reef Transmission Replacement Board 3,225,656.30 (79,930.54) 3,140,710.76 5,015.00 5,015.00 Florida Design Contractors, Inc. 1141-15 Chlorination lmprovments Florida City P1ant Board 106,900.00 104,762.00 2,138.00 2,138.00 NVS, Inc. 1145-16 Biscayne Aquifer Saline Water Monitoring Wells Board 93,935.00 6,400.00 98,385.00 1,950.00 1,950.00 Florida Design Contractors, Inc. 1157-17 Tank Demolition and Misc. Water System Improvements Board 320,600.00 119,871.90 200,728.10 200,728.10 Douglas N. Higgins, Inc. 2323-16 Key Haven Utility Improvement'!. (8 & CJ Board 1,430,000.00 769,245.98 660,754.02 660,754.02 Charley Toppino and Sons, Inc. 2324-16 Key Haven Utility Improvements (0, E, & F) Board 800,000.00 723,706.10 76,293.90 76,293.90 Charley T oppino and Sons, Inc. 2327•17 United St White St to Whitedhead St Water Main Replacement Phase I Board 527,921.24 (53,711.12) 443,374.61 30,835.51 30,835.51

Total water construction contracts 977,714.53 977,714.53

Water project design contracts

CH2MHill CH4-15 Emergency operations plan for transmission main crossings Board 45,648.00 59,163.00 49,706.08 55,104.92 55,104.92

CH2MHill CH6-17 Engineering Svcs for t he Assessments & Design of Cathodic Protection

Board Systems on FKAA's Water Trilnsmission Mains 211,964.00 119,202.20 92,761.80 92,761.80 Black and Veatch 1130-14 Water/revenue loss management Board 139,596.00 35,355.70 165,560.81 9,390.89 9,390.89 Atkins 1133·15 Marathon distribution system & integration hydraulic model support Exec. Dir. 21,580.00 31,820.00 47,754.04 5,645.96 5,645.96 AECOM 1137-15 C·lll t ransmission main crossing Board 204,545.00 200,248.34 4,296.66 4,296.66 Mathews Consulting 3224·16 Marathon distribution improvements Board 184,726.00 3,399.50 166,251.14 21,874.36 21,874.36 Water Science Associates 1130-14 Professional service agreement Exec. Dir. 45,000.00 200,485.00 244,519.59 965.41 965.41 Water Science Associates 1145-16 Modify swim data Board 29,500.00 58,000.00 87,325.00 175.00 175.00 Water Science Associates 1159-18 Services to plug and abandon three wells Exec. Dir. 29,700.00 29,700.00 29,700.00 Water Science Associates 1160-18 Hydrogeological services realted to Mechanical Integrity Testing Exec. Dir. 19,500.00 19,500.00 19,500.00 CSA Central INC 1161-18 Genral Engineering Services Exec. Dir. 25,000.00 25,000.00 25,000.00

Total water project and design contracts 264,415.00 264,415.00 Total water capital Improvement commitments 1,242, 129.53 1,242,129.53

Wastewater construction contracts

3rd Generation Plumbing Inc. 4029-09 Decentralized Wastewate r Treatment Oemostration Project Board 362,967.00 177,076.80 185,890.20 185,890.20 Whart on.Smith Inc. 4051-12 CudjoeSWRF Board 21,872,000.00 1,107,616.98 22,978,616.98 1,000.00 Layne Heavy Civil, Inc. 4053-12 Cudjoe design build outer islands Board 74,558,000.00 26,475,828.47 96,941,854.34 4,091,974.13 Douglas N. Higgins, Inc. 4058-15 ABC Key Haven Utility Improvements (A, B, C) Board 4,387,000.00 564,000.00 3,188,423.25 1,762,576.75 1,762,576.75 Charley T oppino and Sons, Inc. 4058-15 DEF Key Haven Utility Improvements (D, E, F) Board 1,966,744.00 215,999.84 1,294,527.26 888,216.58 888,216.58 Layne Heavy Civil, Inc. 4059-15 long Key wastewater system Board 921,475.00 379,509.93 541,965.07 Charley Toppino and Sons, Inc. 4062-16 8oc.a Chica NAS Key West Pump Station and FM Extension Board 1,847,000.00 719,642.23 1,814,944.59 751,697.64 751,697.64 Key Honey Contracting LLC 4067-16 Middle Torch Key Extension to the CRWS Board 2,435,400.00 30,742.00 2,059,621.20 406,520.80 Key Honey Contracting LLC 4068-17 No Name Key low Pressure Sewer System Board 2,092,400.00 654,777.54 1,437,622.46 Charley Toppino and Sons, Inc. 4070-17 Key Haven FM Transmission System Board 2,762,000.00 968,561.50 1,793,438.50 l , 793,438.50

Total wastewater construction projects 11,860, 902.13 5,381, 819.67

Wastewater project design contracts

Chen & Associates 4044·10 J.R. Dean WTP wast ewater meter Exec. Dir. 24,974.00 10,986.00 30,113.81 5,846.19 5,846.19 Chen Moore 4062·12 Navy transmission Board 187,600.00 115,740.00 235,082.67 68,257.33 68,257.33 CH2MHill CHl0-12 Programming pf.inning of Cudjoe Regional wastewater system Board 284,196.00 5,287,080.00 5,506,700.09 64,575.91 Mathews Consulting 4054-12 Engineer of record for Cudjoe inner islands Board 140,000.00 923,011.50 993,677.68 69,333.82 Wastewater Technologies 4029·09 Decentralized wastewater treatment demo Board 100,000.00 47,725.81 52,274.19 Mathews Consulting 4058-15 Key Haven Utility Improvements Board 135,181.00 123,792.73 11,388.27 11,388.27 Brown and Caldwell 4069-17 Big Coppitt WWTP Expansion Exec. Dir 34,745.00 $34,672.96 72.04 72.04 Mathews Consulting 4070-17 Key Haven Force Main Board 194,281.80 103,153.70 224,164.59 73,270.91 73,270.91 Total wastewater project design contracts 345,018.66 158,834.74 Total wastewater capital improvement commitments 12,205, 920.79 5,540, 654.41

Total contractu<II commttments s 13,448,050.32 s 6,782,783.94

.....

Florldctt Keyl-Aqueduct Autncr'(ty Summary of contractual commitments MO~AJ1. AprU 30, :u>:t!l

Vendor name TastOrder# Project Approved Awarded task order Amendments Total paid to date Remaining task

amount order

Task orders I

CH2MHill 1-17 SCADA repair and upkeep Board 45,000.00 75,000.00 106,107.45 13,892.55 CH2MHill 1-18 SCADA repair and upkeep Board 100,000.00 100,000.00 CH2MHill 2-17 General Engineering Services Exec. Dir . 20,000.00 11,373.80 8,626.20 ACR, LLC 1132-15 Water portals Board 60,000.00 60,000.00 111,000.00 9,000.00 CH2MHill 2-16 SCADA repair and upkeep Board 45,000.00 45,000.00 84,123.78 5,876.22 CH2MHill 3-17 General technical electrical services Exec. Dir. 25,000.00 13,424.40 11,575.60 CH2MHill S-15 Technical and programming service Exec. Dir. 24,492.00 - 14,353.39 10,138.61 Douglas N. Higgins, Inc. ITB-15-021 Utility service contract Board 500,000.00 276,060.52 223,939.48 Data Flow Systems Data Flow Syster Remote Monitoring and Control System for Lift Stations Board 149,775.00 - 31,471.16 118,303.84 FJ Nugent E-One/Sentry Remote Monitoring Systems for Grinder Pumps Board 281,300.00 - 108,000.00 173,300.00 Mathews Consulting 1793 Engineering services Board 50,000.00 - 48,633.32 1,366.68 Mead and Hunt 1101-09 Technical and strategic assistance for NAS Key West water Board 30,000.00 43,480.00 61,145.62 12,334.38 Mead and Hunt 4037-09 NAS Wastewater utility services Exec. Dir. 24,600.00 53,670.00 74,895.00 3,375.00 Raftelis 01-2015 Utility financial consulting services Exec. Dir. 24,000.00 - 13,075.36 10,924.64 Raftelis 02-2014 System development charges Exec. Dir. 24,365.00 13,562.85 10,802.15 Raftelis 02-2016 Water Revenue Sufficiency Exec. Dir. 27,200.00 24,263.47 2,936.53 Raftelis 03-2016 Wastewater Revenue Sufficiency Exec. Dir. 18,900.00 16,176.75 2,723.25 CH2MHill 05-18 SCADA Modification to Tank Fill Flow Controls Exec. Dir. 34,729.00 26,195.89 Mathews Consulting 1136-18 General Engineering Services Board 50,000.00 50,000.00 Carollo 1158-18 General Engineering Services Board 50,000.00 50,000.00 Southeastern Investment Securities 01-18 General requirements Exec. Dir. 20,000.00 7,000.00 13,000.00 Carollo 7002-03 Hurrican Irma Damage Assessment Assistance Exec. Dir. 34,430.00 65,417.00 1,721.50 Carollo 8034-17 Trumbo Tank and Pump Station Replacement Board 136,667.00 51,896.25 84,780.75 CH2MHill 7002-03 Mech/Electrical Damage Assesment Assistance Post Irma Board 210,537.84 90,032.60 Carollo 1154-17 Grassy Key 30 inch Water Transmission main replacement Board 49,792.00 49,792.00 Carollo 4053-12 Cudjoe Regional Wastewater System Exec. Dir. S,472.00 5,472.00 CH2MHill 7-18 Emergency Recovery Assistance Exec. Dir. 24,000.00 $24,000.00

Total task orders s 1,114, 109.87 I Ctir!ffll month.add,Oom; Of th.ances""' Uec\JIMDilKtot

Page 1


AGENDA ITEM: DOA- 03 CONSENT: [ .J REGULAR: [gj

MEETING DATE: May 23, 2018 DIVISION: Administration

AGENDA TITLE:

Consideration to approve a Budget Amendment in the amount of $2,700,000.00 for direct emergency repair expenses of damage sustained during Hurricane Irma and the replacement of a 40-ton AC Chiller for the J. Robert Dean Treatment Facility.

ITEM BACKGROUND:

On September 10, 2017 Hurricane Irma came through the Florida Keys causing damage to the Authority's distribution system and numerous FKAA buildings. Emergency repairs and purchases were made to resume operations. On February 2018, the WTP's main A/C Chiller began to fail. Attempts to repair the unit were unsuccessful and a replacement was necessary.


Board of Directors approved Budget Amendments for Emergency Services, Repairs and Purchases in the amount of $1,494,800.00.

STAFF RECOMMENDATION (MOTION):

Approve of Budget Amendment in the amount of $2,700,000.00.


See attached expense summary, Authorization for Emergency Purchase and quote from Biscayne Air.

DOCUMENTATION: Included: D Cost to FKAA: $ 2,700,000.00 Cost to Others: $ Total Cost: $ 2,700,000.00

DEPARTMENT: Finance


BOARD ACTION:

Approved: D Tabled: D

Comments:


Disapproved: D

Not Required: D YesD NoD

Recommendation Revised: D

---------------------------------Date: ___________ _ Recording Clerk:. _ _ ____ _______ _

Hurricane Irma Emergency Expenses Salaries, Taxes and Benefits

Emergency Materials and Supplies

Fuel for Power Production Roof Repairs - Ramrod Pump Station, Marathon Booster Station & Marathon Operations

J. Robert Dean Treatment Facility 40-ton AC Chiller FY 2018 Approved Emergency Budget Amendments

Requested Budget Amendment

$ $ $ $

1,331,997.00 2,680,353.00

50,000.00 74,875.00

$ 4,137,225.00

$ 57,575.00 $ (1,494,800.00)

$ 2,700,000.00


AGENDA ITEM: DUO- 01 CONSENT: D REGULAR: [KJ

MEETING DATE: May 23, 2018 DIVISION: UTILITY OPERATIONS

AGENDA TITLE: Review of the structural status of the existing Key West Administration Building, and consideration to approve a site selection for the new Key West Administration Building.

ITEM BACKGROUND: The attached presentation highlights the following: 1) Results of the second structural engineering assessment of the existing Key West Administration 2) Three options developed by our architect, Thomas E. Pope PA, with respect to the most viable sites for a new

Key West Administration Building. The advantages, disadvantages and approximate project costs are listed for each option.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: Award of space programming, planning and conceptual design for the new Key West Administration Building to Thomas E. Pope, PA in the amount of not to exceed $136,000.00 on March 28, 2018.

STAFF RECOMMENDATION (MOTION): Board of Directors to review of the structural status of the existing Key West Administration Building, and approve a site selection for the new Key West Administration Building.

SUPPLEMENTAL INFORMATION: Attached presentation.

DOCUMENTATION:

Cost to FKAA: Cost to Others: Total Cost:

Included:

$ $ $

0 To-Follow: D BUDGETED:

Not Required: D YesD No CJ

DEPARTMENT: Engineering I DEPARTMENT DIRECTOR APPROVAL: L DIVISION DIRECTOR APPROVAL: Jj ~~ Reviewed by: Internal Auditor: r- Ge~eral Counsel: _.£I£._ Executive Director:..¢-

I BOARD ACTION:

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

Comments:

Date: Recording Clerk:

SCOPE OF WORK • McCarthy and Associates, a Division of Pennoni has been retained to review

the findings of the previous reports, perform a l imited visual site visit to document structural damage, develop repair recommendations, review building code implications in repairing the structure and provide a summary report of our findings .

• Site observations were made during property visit on April 19, 2018 .

•

FK1\,\ KEY WEST ~

C O ~l D I T I O N A S S E S S M E N T 1Penno1Jil M CC ART H v & ,\ S SOC I ,\ T ES ~

REVIEW OF PREVIOUS REPAIR ATTEMPTS REPORTS PEER REVIEW OF CONDITION ASSESSMENTS

PEER REVIEW ASSESSMENTS . As part of our evaluat ion, we were provided documentation of completed

prior repairs and damage assessments done for this building. At least (3) major concret e restoration efforts were undertaken in approximately 1989, 2000 and 2011. The majority of the exterior exposed concrete columns and beams have been repaired in the past .

• Concrete testing approximately 20 years ago identified chloride levels has high as 12.9 Lb/ Cuyd. These levels exceed the al lowable recommended by ACI by 100%. Current levels are likely far higher. The high chloride levels and water intrusion through cracks in the concrete have contributed to the extensive degradation of the concrete .

• Issues with previous repa irs included continually reoccurring damages and limited concrete repairs due to accessibil ity issues .

• Two additional condition assessments completed in 2005 (Bender & Associates) and 2018 (Caro llo} were also provided for our review. Each condition assessment identified additional substantial damage to the concrete columns and beams that support the exterior of t he structure .

•

FKA,i KEY \VEST ~ CONDIT ON ASSESSMENT 1PennOf!Y MCCARTHY & /\SSOU1\TES ~

CONCLUSIONS • Extensive damage to the exterior concrete beams and columns that support the second floor and

roof deck of the building was identified. In response to th is, on April 26, 2018, we issued an urgent letter recommending protective measures at severa l locations that were found to be unstable .

• The concrete damage and spalling appears to be ongoing and has caused significant structu ral weakening of the building. Based on review of the previous repair attempts, it does not appear that the exterior curtain wall was removed during the repairs. Therefore, it is likely that there were damaged portions of the concrete beams and columns that were not adequately repaired .

• If further repairs are to be attempted, then the cost would likely exceed 50% of the building's fair market cost requiring the building to be upgraded to meet FEMA requirements. This would require the first floor of the building to be abandoned, flood proofed or elevated to be a minimum of 1 foot above the base flood elevation of 8 feet. Any of these options would be either highly cost prohibitive and/ or technically infeasible .

• The existing structure cannot be upgraded to meet the same requirements that a new building wou ld be required to meet to withstand the current Code requirements for wind loading or flood protection .

• Based on the extensive level of damage and lack of previous successful repair attempts, the building appears to be at the end of its useful life and warrants replacement.

•

FKA1\ KEV \VEST ~

CONDIT ON ASSESSMENT 1Penno1Jil MCCARTHY & ASSOCIATES ~

RECOMMENDATIONS • There exists a risk of a dangerous condition due to fa ll ing debris from the

loose and damaged sections of concrete that are present at the front entry. Therefore, temporary shoring is recommended to be installed to support a portion of the second floor above the conference room .

• The building will likely sustain additional damage during a high wind event such as a hurricane .

• It is recommended the bu ilding be evacuated duri ng a high wind event such as a hurricane .

• Based on the level of current damages and the previous unsuccessful repairs, the building appears to be at the end of its useful life .

•

FK/11\ KEV \VEST ~ coN01T ON 1,ssEssMENT 1PennoJJP tvCCARTHv & ASSOCIATES ~

PROJECT OBJECTIVE The new Florida Keys Aqueduct Authority Administration (FKAA) Bui lding

located in Key West is the result of a collaborative effort between Thomas E.

Pope, P.A., the consult ant team, and the FKAA Employees with the goa l of

providing a Program Statement and Pre-Design Study. The Program

Statement will outline the proposed functions within the building and the

space allocated for each, while the Pre-Design Study wi ll study the feasibi lity

of several sites located in Key West and Stock Island. There are two primary

objectives of this programming study. The first is to establ ish a new program

that address the current and future needs of dai ly operations and FKAA staff.

The second objective is to compare the existing faci lities operation with t he

proposed program .

•

l=K/1/1 KEY WEST PRQGqAMMING fHOMI\S E POPE PA

• • 0

•

CRITICAL GOALS

To improve the health, safety, and welfare of t he public users and bu ilding occupants.

To improve the customer and staff experience from parking to entering and navigating inside t he building.

To provide a hurricane proof building for FKAA staff to safely util ize as an operational center during and after a storm .

To provide a building substantially above the FEMA flood requirements.

•

eKA/\ KEV \VEST PROGRAMMING THOMAS E POPE, PA

•

PROJECT GOALS

To create a building that represents FKAA's image and is consistent with the Florida Keys cu lture .

To consolidate administration departments into one location for improved efficiency and communication. To create work spaces that promote efficiency between individuals, departments, and customers.

To provide a high-performance sustainable bu ilding with materials selected to minimize maintenance expenses over the lifeti me of the bu ilding .

• •

•

To emphasize energy efficiency, future maintainabil ity and flexib ility, and long-term durability.

To util ize modern technology and technological practices to improve how employees and the building operate.

To create work space environments t hat allow for acoustical privacy and daylighting.

SURVEY DATA

•

FKA/\ KEY WEST PROGRAMMING T H O M i\ S E P O P E P 1\

Only 19% of building occupants currently have access to a window in their workspace .

44% of bui lding occupants currently have access to a natural light in their workspace.

PROJECT PROGRAM EXISTING PROGRAM DEPARTM ENT

DEPARTMENT

Executive

f.r1<lmeenn<1

Operations

Info rmation T edmokv,v

AccountinGj

Human Resources

Records

PurchasmGj

B1lhn<1

Customer Service

Aux1harv .ind S uooort S oace

Total Pooulat 1011

Bulldtrl<l S f

•

FK1\/I KEV WEST PROGRAl'v MING Tf-tOMAS f POPE, PA

~ C, z 0 .:: <( ...J ::::l IL

2 9

23 4

9

13

4

3

-

6

17

88

AREA (Sf)

TOTAL AREAS

2,148

3,776

942

2,020

1,834

932 • 372

-708

2,533

10,335

25,600

PROPOSED PROGRAM DEPARTMENT AR.EA (Sf )

~ C,

"-z <J) <J) 0 ...J (i ~ ~ g z <(

ILI ::::l f-;- Cl ...J IL <(

0 !O ii: 1--DEPARTMENT IL ~ ~ 9 Execut ive 9 1,860 30% 2,418 Enct1neenna 25 3,920 25% 4,900 0 17erat1ons 5 880 25% 1,100 Information T echnoloav 8 1,550 25% 1,938 Account inct 12 1,640 25% 2,050 Human R.esources 4 870 25% 1,088 R.ecords 4 710 25% 888 Purchas,na 3 570 25% 713 81lhnct 6 830 25% 1,038 Cust omer Service 17 2,950 25% 3,688 Aux1harv t Sui,i,ort S i,ace 10,250 25% 12,788

Total P~•lation 93

M1n1mum Bulld1na S f 32,606 Des1G!n Factor 15% Maximum Bu1ldin,, Sf 37,496

Recommended Bu11din<! Sf 32,700

0

•

FK/\/1 KEY WEST SITE .I\NALVSIS THOMJ\S E POPE P1\

(

SITE ANALYSIS The Thomas E. Pope, PA consultant team examined severa l

sites throughout Key West and Stock Island, including the

existing site, neighboring parking site, and FKAA owned site in

Stock Island. Each site was ana lyzed to determine its

compatibility with the program data and square footages.

OBJECTIVE

EXISTING SITE KENNEDY DRIVE

Parking Analysis:

86 spaces requi red per City Parking Code

99 spaces for BB&T Easement

185 spaces required

I 133 spaces provided

Parking Summary:

52 space nonconformity exists on current site.

Any redevelopment will require deficiency to be addressed and meet

current City Parking Requirements.

•

FK/\1\ KEY WEST S I TE /\NALYS S T H O M ,\ s E p O p E p 1\

Site NT&

\

' ~ Study @

~

.l

~··-·C,•

7!>•ee>OF1WO &TOIOY l:K.IIWtlC, uml~P.AflKN:i

9f'ACD

\

J

EXISTING SITE I 1100 KENNEDY

OPTION 1

I ,, )

j)

C----:-

'i/ ~ ~

)

C----~

";, ii

)

C----

5) .. I

Parking Garage Height Diagram MTS

~ K /I /1 K E V \V E S T SITE ANALYS S THOMi\S E POPE, P/1

_..,_ ______________ _ Height Diagram

Site

.

Site EXISTING SITE! 1100 KENNEDY

OPTION 1 Land Development Code Notes:

• Building too small for proposed program requ irements. Requires Operations,

IT, Purchasing Departments to be offsite (Approx. 5,000 SF}

• Cannot increase building size because FAR does not allow a variance.

• Existing footprint is not optimal for natural lighting .

• Parking structure scale is larger than Administration Building .

•

Parking structure requires setback variance and height variance for elevator

tower.

Building will require height variance for elevator tower and any equipment

• placed on roof.

Although a height variance is required, it wil l not go to referendum. The

• variance process can move concurrently with the development review

process.

Parking Analysis:

86 spaces required per City Parking Code


185 spaces required

j 210 spaces provided

Cost Analysis:

Site Work:

Office Building:

Parking Garage:

Owner Costs:

Project Cost Estimate:

Programming Notes:

Purchasing, IT, Operations, and

Additional Conference Rooms not

included on site. (Approx. 5,000 SF)

$2,500,000

$11,700,000

$5,400,000

$4,100,000

$23,700,000

•

F K ,\ A K E Y \\/ E S T SITE ANALYSIS THOMAS E POPE P,\ *There will be additional costs for Program not

included on site.

"! '· C:·

1Et~SF1WO &~ORY l!l<JllDl>b ~ 12 ~.AIOKrNG

&l"ACaS

icc•-z •

EXISTING PARKING I 1010 KENNEDY

OPTION 2

FKA/\ KEV 1\/EST SITE /,N/1LYSIS

Parking Garage Height Diagram HTS

T H O M 1\ S E P O P E P ,'I

\l ii

\l 9

•,_ :, ,:

;. _, 9

::, "

Height Diagram

Site

t ~

t, t: .; a·,

IIT ?

,, -· 'i

-----


OPTIO N 2 Land Development Code Notes:

• Parking structure requires height, lot coverage, and impervious area

variance .

• Building wi ll requi re height variance for elevator tower and any

equipment placed on the roof .

• Although height varia nces are required, they will not go to

referendum. The variance process can move concurrently with the

development review process.

Parking Analysis:

105 spaces required per City Parking Code


207 spaces required

i 218 spaces provided

FK/1/\ KEY \VEST SITE /\Nt'\LYSIS T H O M 1\ S E P O P E . P 1\

Cost Analysis:

Site Work:

Office Building:

Parking Garage:

Owner Costs:


$2,500,000

$11,800,000

$5,400,000

$3,400,000

$23,100,000

Site NTS

FKAA SITE I STOCK ISLAND

OPTION 3

•

FKA/\ KEY \VEST SITE ;\NALYSIS T H O M 1\ S E P O P E P /\

L-1:1-.--...l

- ... ~,.__ ________ _

Height Diagram Site Study tlT$

FKAA SITE I STOCK ISLAND

OPTION 3 Programming Notes:

• Customer Service, Board Room, and part of Engineering not included

on site. {Approx. 4,000 SF)

Parking Analysis:

87 spaces required per County Parking Code

i 87 spaces required

Cost Analysis:

Site Work:

Office Building:

Parking Garage:

Owner Costs:


$2,300,000

$11,800,000

N/A

$2,700,000

$16,800,000

*There will be additional costs for Program not

included on site.

F K 1\ A K E Y W E S T SITE ANALYSIS T I-' 0 r-.,,i /\ S E P O P E P 1\

Site Study HTS

SITE COMPARISON

Cost Analysis:

Site Work:

Office Building:

Parking Garage:

Owner Costs:

Opt ion 1 I 1100 Kennedy

$2,500,000

$11,700,000

$5,400,000

$4,100,000

$23,700,000

Cost Analysis:

Site Work:

Office Building:

Parking Garage:

Owner Costs:

*Owner Costs Include:

NE Design and Const ruction Fees, Surveying, Decorating, Furnishings, Equipment, Art in Public Places,

Rent and Moving Expenses

Option 2 1 1010 Kennedy

$2,500,000

$11,800,000

$5,400,000

$3,400,000

Site Sludy

Cost Analysis:

Site Work:

Office Bui lding:

Parking Garage:

Owner Costs:

Option 3 I Stock Island

$2,300,000

$11,800,000

N/A

$2,700,000

Project Cost Estimate: *There will be additional costs for

Project Cost Estimate: $23, 100,000 Project Cost Estimate: $16,800,000

•

F K /1 A K E y W E S T Program not included on site.

S I T E A N A LY S I S (Approx. minimum project

T H O M I\ S E p O p E , p A budget tor s,ooo SF = $2,100,000)

*There will be additional costs for Program not included on

site. (Approx. minimum project budget for 4,000 SF=

$1,700,000)

EXISTING SITE I 1100 KE NNEDY

APPENDIX

•

FKAA KEY \VEST APPEND X THOM1\S E POPE, PA

ENGINEER INC.

JLLINCs

2nd Level NT5

Program Requiring Relocation NT5

1st Level NTS

ENGINEERING

ILLINC.

EX ECUTIVE

=G=r=o=u=n=d===L_ev_e_l _ __ ~ NT& '\l[j

~


APPENDIX

•

Fk/11\ KEY WEST APPENDIX THOMAS E POPE

OPERATIONS

3rd Level NT& p"

2nd Level HTS

1st Level NTS

-lei'- ~ ·

Ground Level ~ =HTS=========---- --\J.JY

I}(/

FKAA SITE I STOCK ISLAN~.__.....,

APPENDIX

•

F K /\ /\ K E v \.\ E S T APPE~iDIX T H O M 1\ S E . P O P E P ,\

L 4e>·-0 • L ,( r\

Program Requiring Relocation NT&

EXECUTIVE

Level NT&

.43 ' - 4

NT&

6 B IKE 5FACE5

2':l 5FACE5

Ground Level @ =====:::::::::::::==-----~ ~ NT& flJ

p RO G RA M M I N G

A p p

I l ~

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FKAA KEY \VEST APPEI\JDIX

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I~ I~ I~ 0 g 1;; OCC'J"AeU' AA.CM OTY II 11; ·- I 000 ,oo """'"- I 000 000 l°',Cl( 5 Pxa I -400 400 ,- I :ooo 2000 1/cn:gt Ora.4;v..ron I 3000 3000 MttW0!1..C~ • , o 1,0 J.ffl:tOl'Ookt. ' 100 100

""""°"'°""' . "o 000 Co~~ : 300 000 i!lo.Kdl'!~ I :ooo :000 . 10, 1:>e ''" I :.°!,~

•• .... 5 7 4.C:


AGENDA ITEM: DUO- O;;i._ CONSENT: D REGULAR: [KJ


AGENDA TITLE: Status Report for Wastewater Projects.

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

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: The Board requested staff to include this report as part of the monthly agenda package.

STAFF RECOMMENDATION (MOTION): N/A

SUPPLEMENTAL INFORMATION: Attached status report.

DOCUMENTATION: Included: D Cost to FKAA: $ Cost to Others: $ Total Cost: $

DEPARTMENT: Engineering


Not Required: D YesD No CJ

EPARTMENT DIRECTOR APPROVAL: L DIVISION DIRECTOR APPROVAL: _ ___....:::..,Jlf,IE.~---"'~----:--=-=-----------

General Counsel: g ff Executive Direct:&=-Reviewed by: Internal Auditor:-----+-

BOARD ACTION:


Comments: _______________________________ _

Date: _ __________ _ Recording Clerk: _____________ _

Florida Keys /) .. Aqueduct Authority /

I'.:! ~ ef ~e)\~~~.o···

~v CURRENT STATUS OF THE REGIONAL WASTEWATER PROJECT 23-MAY 2018

SUMMERLAND KEY

RA_~ROD KEY

LITTLE TORCH

KEY

2.

Work in the Central Sewer System is continuing with a focus on Key Haven and Cudjoe

• Key Haven (75% project completion)

- All lateral connections complete in Section A, MH testing complete in Sections Band C

- Trench restoration complete in Section D, E and F

• Big Coppitt/Bay Point/Duck Key (100% project completion)

- Continued ongoing connection installation

• Layton/Long Key {98% project completion)

- Continued ongoing connection installation

- Telemetry punchlist work nearing completion

• Cudjoe Regional {95% project completion)

- FDEP certification for Middle and Big Torches received and connection notices mailed to residents

Ongoing grinder station and connection installation throughout

Contract for AWRF closed out

• None

• Key Haven

- Continue lateral connections in Sections Band C; complete electrical work in Sections D, E and F

- Final pavement scheduled in June for Sections D, E and F and in July for Sections A, Band C

• Big Coppitt/Bay Point/Duck Key

- Continue ongoing connection installation

• Layton/Long Key

- Continue connection installation; complete punchlist for project closeout

• Cudjoe Regional

- Continue connection installation on No Name Key

- Continue grinder station, chimney seal and telemetry installation; closeout Outer Islands contract

- Start construction of Breezy Pines

3.

A total of 162 new connections were made last month all in Cudjoe Regional

System-Wide Central Sewer Connections

• Comected a Yet to be Connected

10.000

8,000

6.000

4,000

2,000

4,000

3,000

Central Sewer Connections by Region

Key Haven 81g Copptt Bay Po,nl Duck Key Layton/lol"f: Cu~e Key Reg,onol

• Comec-ted • Yet to be Comrcted

Central Sewer Connections in Cudjoe

Regional

2.000 ~ 2" I 1.000

11!11 ' .... .

• Comttted a Yet to be Connecte d

-

4.

Total project expenditures (as of April 30, 2018) are approaching $192M

(in $OOO's)

Contractors 169,015 I Direct Purchases

I

07,997 I

Engineers o 6,985 I

Labor 04,213 I

Benefits ij 1,137 I

Legal Matters ij 737 I

Work Orders '429 I

Utilities '424 I

Operational Overhead 1306 I

Consultants/Labs 1268 I

Misc. Payments I 76 I

Permitting I 1s 1-------------------------~·

Total Expenses 191,603 I


AGENDA ITEM: DUO- 03 CONSENT: D REGULAR: ~


AGENDA TITLE: Consideration to approve contract with Black & Veatch Corporation to prepare a planning level cost estimate for three (3) alternatives for Project# 1150-17 Stock Island Reverse Osmosis Upgrades in the amount of $45,726.

ITEM BACKGROUND: In 2016, the FKAA selected a design/build team to prepare a preliminary engineering and alternative analysis along with estimated cost for the different alternatives. In May 2017, an analysis of the different options for emergency water supply to the lower keys was presented. In June 2017, staff made a recommendation on the most favorable option. However, due to cost, the project was deferred.

This contract includes preparing cost estimates for three (3) alternatives:

• 2 MGD Capacity with new equipment but utilizing existing building and membranes • 2 MGD Capacity with new equipment, building, and membranes • 4 MGD Capacity with brand new equipment, membranes, and building

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

STAFF RECOMMENDATION (MOTION): Board approve contract with Black & Veatch Corporation to prepare a planning level cost estimate for three (3) alternatives for Project# 1150-17 Stock Island Reverse Osmosis Upgrades in the amount of $45,726.

SUPPLEMENTAL INFORMATION: See Attached.

DOCUMENTATION: Included:

Cost to FKAA: Cost to Others:

$ $

0 $45,726

Total Cost: $ ___ $~4_5,~7_26_



Not Required:

Yes [KJ


D No D

Reviewed by: Internal Auditor: ____ _ General Counsel: d<~f f Executive Director~

BOARD ACTION:

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

Comments: _________________________________ _

Date: ___________ _ Recording Clerk: --------------

CONTRACT FKAA PROJECT NO.

THIS AGREEMENT, made and entered into this day of ________ , by and between the Florida Keys Aqueduct Authority, hereinafter "FKAA", and _________ _ hereinafter referred to as "CONSULT ANT".

WHEREAS, the FKAA has provided notice of the desired professional services and carried out the proper selection process pursuant to and in accordance with CONSULT ANT's Competitive Negotiation Act, and;

WHEREAS, the FKAA represents that it is a Utility, organized under the State of Florida with the authority to engage CONS ULT ANT and accept the obligation for payment for the services desired, and;

WHEREAS, the FKAA desires to engage CONSULT ANT to perform certain professional services pertinent to such work in accordance with this AGREEMENT, and;

WHEREAS, CONSULT ANT shall provide such professional services in accordance with this AGREEMENT.

NOW, THEREFORE, in consideration of the premises and the mutual benefits which will accrue to the parties hereto in carrying out the terms of this AGREEMENT, it is mutually understood and agreed as follows:

I. DEFINITIONS; GENERAL CONDITIONS

A. THE SCOPE OF SERVICES is to be implemented as set forth by this AGREEMENT and by Exhibit A, Project Documentation as attached to this agreement that are made part hereof.

B. CONSTRUCTION COSTS shall be the total estimated cost to the FKAA of all elements of the project designed or specified by CONSULT ANT. Construction costs shall include the cost at current market rates of labor and materials furnished by the Contractor and equipment designed, specified, selected or specially provided for by CONSULT ANT, plus a reasonable allowance for the contractor' s overhead and profit. In addition, a reasonable allowance for contingencies shall be included for market conditions at the time of bidding and for changes in the work during construction. Construction costs does not include the compensation of CONSULT ANT or CONSULT ANTS subconsultants, the cost of the land, rights-of-way, financing or other costs which are the responsibility of the FKAA. CONSUL TANT shall use its best judgment as a design professional familiar with the construction industry in estimating the construction cost. FKAA acknowledges that construction cost estimates, financial analyses and feasibility projections are subject to many influences including, but not limited to, price of labor and materials, unknown or latent conditions of existing equipment or structures, and time or quality of performance by third parties. FKAA acknowledges that such influences may not be precisely forecasted and are beyond the control of CONSULT ANT and that actual costs incurred may vary substantially from the estimates prepared by CONSULT ANT. CONSULT ANT does not warrant or guarantee the accuracy of construction or development cost estimates.

C. PHASES: A phased approach may be utilized. The FKAA and CONSULT ANT shall have the right to negotiate the terms of each phase. In the event the parties cannot agree, the FKAA may select another CONSULT ANT or go out for additional proposals in order to complete the subsequent phase(s) of the project. This phased approach shall not waive the FKAA' s right to terminate this AGREEMENT during any phase of the project.

1

II. GENERAL DUTIES OF CONSULT ANT

A. The relationship of CONSULTANT to the FKAA will be that ofa professional CONSULTANT, and CONS ULT ANT will provide the professional and technical services required under this AGREEMENT in accordance with acceptable practices and ethical standards which may include, but are not limited to professional engineering services as identified in the attached Exhibit A, Proj ect Documentation. No employer/employee relationships shall be deemed to be established and CONSULT ANT, its agents, subcontractors, and employee shall be independent contractors at all times.

B. Professional and Technical Services. It shall be the responsibility of CONSULT ANT to work with the FKAA and appraise it of solutions to problems and the approach or technique to be used towards accomplishment of the FKAA's objectives as set forth in this AGREEMENT upon execution by both parties.

C. Exhibit A- 1 establishes a budget for the project. CONSULT ANT shall be responsible for providing, at no additional cost to the FKAA, completed designs, drawings, specifications, reports and other applicable services if the budget for the entire project is exceeded during and up to completion of the final design phase of the project; however, nothing contained herein shall require CONSULTANT to bear additional costs if the additional costs are a result of a change in the scope of services directed by the FKAA.

D. CONSUL TANT shall be responsible for the professional quality, technical accuracy, timely completion, compliance with regulations and rules, and the coordination with all appropriate agencies of all drawings, specifications, reports and other services furnished by CONSULT ANT. CONSULT ANT shall perform its services in accordance with generally accepted standards and practices customari ly utilized by competent engineering firms in effect at the time CONSULT ANT's services are rendered. CONSULT ANT shall, without additional compensation, correct or revise said error or omissions to the satisfaction of the FKAA. CONSULT ANT shall have no liability for defects in the services attributable to CONSULT ANT's reliance upon or use of data, design criteria, drawings, specifications, or other information furnished by FKAA or third parties.

E. Approval by the FKAA of drawings, designs, specifications, repo1ts and incidental professional services or materials furnished hereunder shall not in any way relieve CONSULT ANT of responsibility for the technical adequacy of its work. The FKAA's review, approval or acceptance of, or payment for, any of the services shall not be construed to operate as a waiver of any rights under this AGREEMENT or of any cause of action arising out of the performance of this AGREEMENT.

F. CONSUL TANT designates Ricardo Vieira, P.E., as its representative to act as liaison with the FKAA. The representative shall manage and coordinate FKAA projects and is hereby authorized to act on behalf of CONSULTANT to act on related matters with respect to performance of services for the FKAA in accordance with the AGREEMENT. Any change to name other person shall be requested in writing to the FKAA, and shall be approved by the FKAA.

G. CONSULTANT shall attend all meetings, as specified or as defined where the project is discussed, unless the FKAA's representative declares such attendance and participation is not necessary. In addition, CONSULT ANT shall attend all additional meetings as may be required to facilitate the project.

2

III. DUTIES OF CONSULT ANTS; STUDY AND REPORT PHASE THROUGH CONSTRUCTION PHASE AND RESIDENT PROJECT REPRESENTATIVE SERVICES PHASE - The following Duties of CONSULT ANT are separated into phases of the project that shall be performed by CONSULT ANT. The FK.AA may require additional requirements applicable to the project that will be specified in attached Exhibits. The FKAA must authorize the commencement of each phase of the work unless otherwise agreed upon.

A. Phase I - Study and Report Phase If the Study and Report Phase is authorized, the following requirements shall apply.

I. CONSUL TANT shall consult with the FKAA to clarify and define the FKAA's requirements for the Project and review available data.

2. CONSULTANT shall advise the FKAA as to the necessity of the FKAA's providing or obtaining from others, data or services.

3. CONSULTANT shall identify and analyze permit and approval requirements of all governmental authorities having jurisdiction to approve the design of the Project and participate in consultations with such authorities.

4. CONSULTANT shall provide analyses of the FKAA's needs, planning surveys, site evaluations and comparative studies of prospective sites and solutions.

5. CONSULTANT shall provide a general economic analysis of Owner's requirements applicable to variable alternatives.

6. CONSULT ANT shall prepare a Report contammg schematic layouts, sketches and conceptual design criteria with appropriate exhibits to indicate clearly the considerations involved (including applicable requirements of governmental authorities having jurisdictions as aforesaid) and the alternative solutions available to the FKAA and setting forth CONSULTANTS findings and recommendations. This Report will be accompanied by CONSULT ANTS pre-design opinion of probable costs for the Project, including, but not limited to the following which will be separately itemized: Construction Cost, allowance for engineering costs and contingencies allowances for such other items, such as charges of all other professionals and consultants, for the cost of land and rights-of-way, for compensation for or damages to properties, and for permit, review and/or approval fees by other governmental agencies, if required. CONSULT ANT shall also provide a preliminary evaluation of the FKAA's Project Schedule. The FKAA's Project Schedule and probable construction costs shall be evaluated and updated throughout subsequent phases of the work.

7. CONSULT ANT shall furnish the number of copies of the Study and Report documents as provided in this AGREEMENT and review them with the FKAA.

B. Phase II - Preliminary Design Phase

If the Preliminary Design Phase is authorized, the following requirements will apply:

I. CONSULT ANT, in consultation with the FKAA shall determine the general scope, extent and character of the Project.

2. Prepare Preliminary Design documents consisting of final design criteria, preliminary drawings, outline specifications and written descriptions of the Project.

3

3. Advise the FKAA if additional data or services are necessary and assist the FKAA m obtaining such data and services.

4. Furnish the specified number of copies of the above Preliminary Design documents as contained within the Project Documentation and present and review them with the FKAA.

5. CONSULTANT shall submit to the FKAA a preliminary estimate of construction costs based on current area, volume or other unit costs, which shall be updated throughout the design development phase.

6. CONSULT ANT shall prepare a development schedule, which shall include, but shall not be limited to, the review and approval times by all governmental agencies as may be required.

7. CONSULTANT shall make available all design calculations and associated Data, and participate in meetings in which Value Engineering Analysis of the project takes place, at such times and places as shall be determined by the FKAA.

C. Phase III - Final Design Phase

If the Final Design Phase is authorized, the following requirements shall apply:

I. CONSULT ANT shall prepare construction documents which shall include but not be limited to drawings and technical specifications, general and supplementary conditions, bid forms, invitations to bid, instructions to bidders, with technical criteria, descriptions and design data necessary for permitting by governmental authorities, and shall include any further adjustments in the scope or quality of the project or in the construction budget authorized by the FKAA.

2. CONSULT ANT shall in the preparation of construction documents, technical criteria, written descriptions and design data, take into account all currently prevailing codes and regulations governing construction in the Florida Keys and shall meet the requirements of all other agencies or governmental authorities having jurisdiction over the project.

3. CONSULTANT shall prepare a detailed opinion of probable cost that shall be reviewed by the FKAA prior to going out for bids.

4. CONSULT ANT shall provide the required documents and attend meetings as necessary, for the approval of governmental boards, agencies or authorities having jurisdiction over the project.

5. CONSUL TANT shall use front end bid documents provided by the FKAA including bidding forms, conditions of the contract, and form of AGREEMENT between the FKAA and CONTRACTOR.

6. CONSULTANT shall prepare all documents including design and plan revisions required for the approval of governmental authorities having jurisdiction over the project. Said approvals are required prior to the public notice for the Invitation to Bid and submission of application and therefore are the responsibility of CONSULT ANT.

a. CONSULT ANT shall provide the FKAA the number of copies of contract documents as specified in this AGREEMENT.

4

D. Phase IV - Bidding/Negotiation Phase

If the biding phase is authorized, the following requirements shall apply

I . CONSULT ANT shall assist the FKAA in obtaining bids or negotiated proposals, assist in awarding and preparing contracts for construction, attend pre-bid conferences, prepare addenda, provide written recommendation of award, assist in the compilation/preparation of contract documents, and after the award assist the FKAA in securing the required bonds and certificates of insurance, and in the review of the contract documents for completeness.

2. CONSULTANT shall attend the bid opening, prepare bid tabulation sheets and assist the FKAA in evaluating bids or proposals and in assembling and awarding contracts for construction, materials, equipment and services.

3. CONSULTANT shall issue addenda as appropriate to interpret, clarify or expand the Bidding Documents.

4. CONSULT ANT shall consult with and advise the FKAA as to the acceptability of subcontractors, suppliers and other persons and organizations proposed by the prime contractor(s) (herein called CONTRACTOR(S)) for those portions of the work as to which such acceptability is required by the Bidding Documents.

5. Consult with the FKAA concerning and determine the acceptability of substitute materials and equipment proposed by CONTRACTOR(S) when substitution prior to the award of contracts is allowed by the Bidding Documents.

E. Phase V - Construction Phase

If Contract Administration is authorized, the following requirements shall apply:

I. CONSULTANT shall provide administration of the contract for construction as set forth herein and as contained with the general conditions of the contract for construction.

2. CONSULT ANT shall be a representation of and shall advise and consult with the FKAA during construction and until final payment to the contractor is due. CONSULT ANT shall have authority to act on behalf of the FKAA only to the extent provided in this AGREEMENT and as provided in the contract for construction unless otherwise modified by written instrument.

3. CONS ULT ANT shall visit the site at regular intervals appropriate to the stage of construction or as otherwise agreed to by the FKAA and CONSULT ANT, in writing, to become generally fam iliar with the progress and quality of the work completed and shall determine in general if the work is being performed in a manner indicating that the work when completed wi ll be in accordance with the contract documents. CONSULT ANT shall keep the FKAA informed of the progress and quality of the work and shall provide certification to the FKAA of satisfactory completion of all phases of the work in compliance with the plans, specifications, and/or approved changes or modifications thereto.

4. CONSULTANT shall not have control over or charge of and shall not be responsible for construction means, methods, techniques, sequences or procedures of construction or for safety precautions and programs in connection with the work, since these are solely the

5

CONTRACTOR'S responsibility under the contract for construction. CONSULTANT shall make every reasonable effort to ensure that the CONTRACTOR completes the work in accordance with the current approved schedule and carries out the work in accordance with the contract documents. CONSULT ANT makes no warranty or guarantee with respect to the performance of a CONTRACTOR.

5. CONSULTANT based on observations and evaluations of CONTRACTOR'S applications for payment, shall review and certify the amounts due the CONTRACTOR within seven (7) days of receipt.

6. CONSULT ANTS certification for payment shall constitute a representation to the FKAA, based on CONSULT ANTS observations at the site as provided herein and on the data comprising the CONTRACTOR'S application for payment, that the work has progressed to the point indicated and that, to the best of CONSULT ANTS knowledge, information, and belief, the quality and quantity of work is in accordance with the contract documents. The foregoing representations are subject to an evaluation of the work for conformance with the contract documents, correctable prior to completion and to specific qualifications expressed by CONSULT ANT. The issuance of the certificate of payment shall further constitute a representation that CONSULTANT has made observations to review the quality or quantity of the work.

7. CONSULTANT shall recommend disapproval or rejection of CONTRACTOR'S WORK to the FKAA which does not conform to the contract documents. CONSULTANT will have authority to require additional inspection or testing of the work in accordance with the provisions of the contract documents, whether or not such work is fabricated, installed or completed.

8. CONSULT ANT shall review and approve or take other appropriate action upon CONTRACTOR'S submittals such as shop drawings, product data, and samples for the purpose of checking for conformance with information given and the design concept expressed in the contract documents. CONSULT ANT shall evaluate and determine the acceptability of substitute materials and equipment proposed by CONTRACTORS.

9. CONSULTANT shall prepare change orders and construction change directives with supporting documentation and data if deemed necessary by CONSULT ANT, for the FKAA's approval and execution in accordance with the contract documents, and may authorize minor changes in the work not involving an adjustment in the contract sum or an extension of the contract time which is consistent with the intent of the contract documents.

I 0. CONSULT ANT shall conduct inspections to determine the date or dates of substantial completion and the date of final completion, shall receive and forward to the FKAA for the FKAA's review and records, written warranties and related documents required by the contract documents and assembled by the CONTRACTOR and shall issue a final certificate for payment upon compliance with the requirements of the contract documents.

11. CONSULT ANT shall interpret matters concerning performance of the FKAA and CONTRACTOR under the requirements of the contract documents on written request of either the FKAA or CONTRACTOR. CONSULTANT'S response to such requests shall be made with reasonable promptness and within any time limits agreed upon.

12. Interpretations of CONSULT ANT shall be consistent with the intent of and reasonably inferable from the contract documents and shall be in writing or in the form of drawings.

6

When making such interpretations, CONSULT ANT shall endeavor to secure faithful performance by both the FKAA and the CONTRACTOR.

13 . The FKAA shall be the final arbiter on matters relating to aesthetics.

14. CONSULTANT shall render written interpretations within a reasonable time on all internal disputes between the FKAA and CONTRACTOR relating to the execution of the progress of the work as provided in the contract documents. CONSULT ANT'S interpretations on internal disputes are not binding on the FKAA and the FKAA may result to remedies afforded by this contract to resolve the issue.

15. CONS ULT ANT shall provide the number of sets of the construction documents to the CONTRACTOR as specified in this AGREEMENT

16. Upon completion of construction CONSULT ANT shall provide to the FKAA, three sets of record drawings, signed and sealed, plus one electronic set incorporating record conditions and other data furnished by CONTRACTOR(S) to CONSULTANT.

I 7. In company with the FKAA, CONSULT ANT shall visit the Project to observe any apparent defects in the complete construction, assist the FKAA in consultations and discussions with CONTRACTOR(S) concerning correction of such deficiencies, and make recommendations as to replacement or correction of defective work.

18. The presence or duties of CONSULT ANT's personnel at a construction site, whether as onsite representatives or otherwise, do not make CONSULT ANT or CONSULT ANT's personnel in any way responsible for those duties that belong to FKAA and/or the construction contractors or other entities, and do not relieve the construction contractors or any other entity of their obligations, duties, and responsibilities, including, but not limited to, all construction methods, means, techniques, sequences, and procedures necessary for coordinating and completing all portions of the construction work in accordance with the construction Contract Documents and any health or safety precautions required by such construction work.

19. CONSULTANT and CONSULTANT's personnel have no authority to exercise any control over any construction contractor or other entity or their employees in connection with their work or any health or safety precautions and have no duty for inspecting, noting, observing, correcting, or reporting on health or safety deficiencies of the construction contractor(s) or other entity or any other persons at the site except CONSULTANT's own personnel.

20. The presence of CONSULT ANT's personnel at a construction site is for the purpose of providing to FKAA a greater degree of confidence that the completed construction work will conform generally to the construction documents and that the integrity of the design concept as reflected in the construction documents has been implemented and preserved by the construction contractor(s). CONSULTANT neither guarantees the performance of the construction contractor(s) nor assumes responsibility for construction contractor's failure to perform work in accordance with the construction documents

F. Phase VI - Resident Project Representative Services Phase

If the Resident Project Representative Services Phase is authorized the following requirements

7

shall apply:

I. Resident Project Representative will be assigned to assist CONSULT ANT in carrying out his responsibilities to FKAA at the site. Resident Project Representative is CONSULT ANTS agent at site, will act as directed by and under the supervision of CONSULT ANT, and will confer with CONSULTANT regarding Resident Representative' s actions. Resident Representative's dealing in matters pertaining to the on-site work shall in general be with CONSULT ANT and CONTRACTOR keeping the FKAA advised as necessruy. Resident Project Representative's dealings with subcontractors shall only be through or with the full knowledge and approval of CONTRACTOR. Resident Project Representative shall generally communicate with the FKAA with the knowledge of and under the director of CONSULT ANT.

2. Resident Project Representative shall where applicable:

a. Review the progress schedule, schedule of Shop Drawing submittals and schedule of values prepared by CONTRACTOR and consult with CONSULTANT concerning its general acceptability.

b. Attend meetings with CONTRACTOR, such as preconstruction conferences, progress meetings, job conferences and other project-related meetings, and prepare and circulate copies of minutes thereof.

c. Working principally through CONTRACTOR'S superintendent, assist CONSULT ANT in serving as the FKAA's liaison with CONTRACTOR, when CONTRACTOR'S operations affect the FKAA's on-site operations.

d. Assist in obtaining from the FKAA additional detail s or information, when required for proper execution of the Work.

e. Record date of receipt of Shop Drawings and samples.

f. Receive samples which are furnished at the site by CONTRACTOR, and notify CONSULTANT of availability of samples for examination.

g. Advise CONSULTANT and CONTRACTOR for the commencement of any Work requiring a Shop Drawing if the submittal has not been approved by CONSULTANT.

h. Conduct on-site observations of the Work in progress to assist CONSUL TANT in determining if the Work is, in general, proceeding in accordance with the Contract Documents. CONSULTANT makes no warranty or guarantee with respect to the performance of a CONTRACTOR.

i. Report to CONSULTANT whenever Residential Proj ect Representative believes that any Work is unsatisfactory, faulty or defective or does not conform to the Contract Documents, or has been damaged, or does not meet the requirements of any inspection, test or approval required to be made; and advise CONSUL TANT of Work that Resident Project Representative believes should be uncovered for observation, or requires special testing, inspection or approval. Nothing herein shall relieve the CONTRACTOR or CONSULT ANT from the duties imposed by the contract.

j . Verify that tests, equipment and systems start-up, and operating and maintenance training

8

are conducted in the presence of appropriate personnel, and that CONTRACTOR maintains adequate records, thereof; and observe, record and report to CONSULTANT appropriate details relative to the test procedures and start-ups.

k. Accompany visiting inspectors representing public or other agencies having jurisdiction over the Project, record the results of these inspections and report to CONSULTANT.

I. Report to CONSULT ANT when clarifications and interpretations of the Contract Documents are needed and transmit to CONTRACTOR clarifications and interpretations as issued by CONSULTANT.

m. Consider and evaluate CONTRACTOR'S suggestions for modifications in Drawings or Specifications and report with Resident Project Representative's recommendations to CONSUL TANT. Transmit to CONTRACTOR decisions as issued by CONSULTANT.

n. Maintain at the job site orderly files for correspondence, reports of job conferences, Shop Drawings and samples, reproductions of original Contract Documents including all Work Directive Changes, Addenda, Change Orders, F ield Orders, additional Drawings issued subsequent to the execution of the Contract, CONSULTANT'S clarifications and interpretations of the Contract Documents, progress reports, and other Project related documents.

o. Keep a diary or log book, recording CONTRACTOR hours on the job site, weather conditions, data relative to questions of Work Directive Changes, Change Orders or changed conditions, list of job site visitors, daily activities, decisions, observations in general, and specific observations in more detail as in the case of observing test procedures; and send copies to CONSULTANT.

p. Record all names, addresses and telephone numbers of the CONTRACTOR, all subcontractors and major suppliers of material and equipment.

q. Furnish CONSULTANT periodic reports as required of progress of the Work of the CONTRACTOR' S compliance with the progress schedule and schedule of Shop drawing and sample submittals.

r. Consult with CONSULTANT in advance of schedule maj or tests, inspections or start of impmtant phases of the Work.

s. Draft proposed Change Orders and work Directive Changes, obtaining backup material from CONTRACTOR and recommend to CONSULTANT, Change Orders, Work Directive changes, and Fie ld Orders.

t. Report immediately to CONSULT ANT and the FKAA upon the occurrence of any accident.

u. Review applications for payment with CONTRACTOR for compliance with the established procedure for their submission and forward with recommendations to CONSULT ANT, noting particularly the relationship of the payment requested to the schedule of values, work completed and materials and equipment delivered at the site but not incorporated in the work.

v. During the course of the work, verify that certificates, maintenance and operation

9

manuals and other data required to be assembled and furnished by CONTRACTOR are applicable to the items actually installed and in accordance with the Contract Documents, and have this material delivered to CONSULT ANT for review and forwarding to FKAA prior to final payment for the work.

w. Before CONSULT ANT issues a Certificate of Substantial Completion, submit to CONTRACTOR a list of observed items requiring completion or correction.

x. Conduct final inspection in the company of CONSULT ANT, the FKAA and the CONTRACTOR and prepare a final list of items to be completed or corrected.

y. Observe that all items on final list have been completed or corrected and make recommendations to CONSULT ANT concerning acceptance.

3. The Resident Project Representative shall not:

a) Authorize any deviation from the Contract Documents or substitution of materials or equipment.

b) Exceed limitations of CONSULTANT'S authority as set fotth in the Contract Documents.

c) Undertake any of the responsibilities of CONTRACTOR, subcontractors, or CONTRACTOR'S superintendent.

d) Advise on, issue directions relative to or assume control over any aspect of the means, methods, techniques, sequences or procedures of construction unless such advice or directions are specifically required by the Contract Documents.

e) Advise on, issue directions regarding or assume control over safety precautions and programs in connection with the work.

f) Accept Shop Drawing or sample submittals from anyone other than CONTRACTOR.

g) Authorize the FKAA to occupy the Project in whole or in part.

h) Participate in specialized field or laboratory tests or inspections conducted by others except as specifically authorized by CONSULT ANT.

IV. DATA AND SERVICES TO BE PROVIDED BY THE FKAA

The FKAA shall provide the following:

A. Furnish or cause to be furnished such reports, studies, instruments, documents, and other information as CONSULTANT and FKAA mutually deem necessary and which are under control of the FKAA.

B. Pay for all legal advertisements incidental to obtaining bids or proposals from contractors.

C. The Executive Director or his designee shall act as the FKAA's representative with respect to the work to be performed under this AGREEMENT. The Executive Director or his designee shall have the authority to the extent authorized by the FKAA Board of Directors to exercise the rights

10

and responsibilities of the FKAA provided in this contract. Said authority may include but is not limited to: transmit instructions, stop work, receive information, interpret FKAA's policies and decisions with respect to materials, equipment, elements, and systems pe1tinent to the services covered by this AGREEMENT.

D. Pay all permit application fi ling fees.

E. Provide access to FKAA facilities.

V. TIME OF PERFORMANCE

A. CONSULT ANT will begin work promptly after issuance of a notice to proceed.

B. CONSULT ANT'S services called for under the AGREEMENT shall be completed in accordance with the schedule contained in the Project Documentation. If CONSULT ANT'S services are unreasonably delayed by the FKAA in excess of 180 days, the time of performance and compensation shall be renegotiated, provided, however, CONS ULT ANT as a condition precedent to renegotiation shall notify the FKAA within fifteen (15) calendar days from the end of the delay of CONSULT ANT'S proposed additional costs incurred by reason of said delay.

VI. AGREEMENT PERIOD

The period of service is from the date of execution of this AGREEMENT. This AGREEMENT will terminate at such time as the engineering services required by this AGREEMENT have been completed.

VII. COMPENSATION

A. The FKAA will compensate CONSULTANT for the services in accordance with a negotiated lump sum, or a not to exceed budgeted amount based on time charges which are based upon hourly rates, plus reimbursable expenses if compensation is based on Method II and other related costs as are specified in this AGREEMENT.

I . METHOD I - LUMP SUM

Wherever possible, the scope of services for Services, Projects or Programs shall be thoroughly defined and outlined prior to its authorization. The FKAA and CONSULT ANT shall mutually agree to a lump sum amount for services to be rendered and a detailed scope of services. Should the FKAA deem that a change in the scope of services is appropriate, then a decrease or increase in compensation shall be authorized in writing. In lump sum contracts, CONS ULT ANT shall submit the estimated man hours, wage rates and other actual unit costs supporting the compensation. CONSULT ANT shall submit a truth in negotiation ce1tificate stating that all data supporting the compensation is accurate, complete and current at the time of contracting.

2. METHOD II - TIME/CHARGES NOT TO EXCEED BUDGETED AMOUNT

When a service is to be compensated for a time charge/not to exceed basis, CONS ULT ANT will submit a not to exceed budget cost to the FKAA for prior approval based on actual time charges which shall not exceed established hourly rates as shown in Exhibit B attached hereto, plus reimbursable expenses and other related costs. The FKAA shall not be obligated to reimburse CONS ULT ANT for costs incurred in excess of the not to exceed cost amount.

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a. The FKAA agrees to pay CONSULT ANT compensation for services rendered based upon the established raw hourly salary rates as shown in Exhibit B for services rendered on FKAA projects multiplied by an overhead factor containing a ten percent (I 0%) profit, which shall not exceed 3.0. The overhead factor may be subject to audit. The schedule of hourly rates as set fo1th in Exhibit B is attached hereto and made a part hereof. The rates listed in Exhibit B may be adjusted upon AGREEMENT of the parties.

b. In addition, the FKAA shall pay for reimbursable expenses invoiced at the actual cost of expenditures incurred by CONSULT ANT if provided in this AGREEMENT as follows:

1. Transportation and subsistence when traveling in connection with the work required of this AGREEMENT shall be reimbursed in accordance with the FKAA Travel and Business Reimbursement Policy and Florida Statute; FS 112.061. The method of transportation shall be by the most efficient and economical means of travel ( considering time of the traveler, cost of transportation and per diem or subsistence required). Lodging of CONSULT ANT'S while on official FKAA business in Monroe County should be arranged and paid for directly by CONSULTANT. FKAA will reimburse lodging for hotels in comparable value to Hampton Inn, Holiday Inn, Fairfied Inn, etc. Mileage and per diem will be reimbursed in accordance with the FKAA Travel and Business Reimbursement Policy and F.S. 112.061.

2. Actual expense of reproductions of documents in excess of that stipulated in the Project Documentation.

3. Actual expenses of testing, laboratory services, and field equipment, postage, supplies incurred directly for the project, and CONSULT ANT'S standard project charges for special health and safety requirements of OSHA.

4. Actual expenses of overtime work requiring higher than regular rates, when authorized by the FKAA.

5. Express courier services shall only be utilized with the approval of the Director of Environmental Services or Director of Engineering.

6. T ravel expenses for CONSULTANT'S employees traveling to and from CONSULT ANT'S offices shall not be reimbursable unless the travel is required for meetings with FKAA personnel, or as otherwise approved by the Director of Environmental Services or Director of Engineering.

B. Subcontractual service shall be invoiced at the actual fees paid by CONSULT ANT, plus an additional ten percent (10%) of the cost of these services to compensate CONSULTANT, for the procuring and management of the subconsultant, and for the other financial and administrative costs. Subcontractual services shall be approved by the FKAA in writing prior to performance of the Subcontractual work.

C. Total Compensation (including, but not limited to compensation for subconsultants) for all services and expenses shall not exceed the budget cost listed in this AGREEMENT, without written approval.

D. If the FKAA determines that any price for services, however calculated, provided by CONSULT ANT, including profit, negotiated in connection with this AGREEMENT or any cost

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reimbursable under this AGREEMENT was increased by any significant sums because CONSULT ANT or any subcontractor furnished incomplete or inaccurate costs or pricing data, then such price or cost of profit shall be reduced accordingly and the AGREEMENT shall be reduced accordingly and the AGREEMENT shall be modified in writing to reflect such reduction.

VIII. PAYMENT

The FKAA agrees that it will use its best effort to pay CONSULT ANT within thi1ty (30) calendar days from presentation of CONSULT ANTS itemized report and invoice and approval of the FKAA's representative, unless additional time for processing is required for payments for basic services, Subcontractual services, and reimbursable expenses as defined in Section VII. CONSULT ANT shall submit monthly invoices, as required in this AGREEMENT, which shall include a report of work completed during the respective invoice period. Invoices shall be in a format consistent with those shown in Exhibit C. The report shall be adequate in detail to describe work progress (% completed for each task) and written summaries of work completed. No payment request shall exceed the value of work and services performed by CONSULT ANT under this AGREEMENT. If FKAA fails to pay any invoiced amounts when due, interest will accrue on each unpaid amount at the rate of one and one-half percent per month.

IX. MISCELLANEOUS PROVISIONS

A. Ownership of Documents

A set of reproducible mylar drawings and electronic documents in a format compatible with AutoCadd, Latest Edition, FKAA's computer system, shall be given to the FKAA. Details, design calculations, and all other documents and plans that result from CONS ULT ANT' S SERVICES under this AGREEMENT shall become and remain the property of the FKAA, including patent and copyright rights, whether the project is completed or not, and will be delivered to the FKAA upon demand. CONSULT ANT reserves the right to retain a copy of all such documents for record purposes. Where such documents are required to be filed with governmental agencies, CONSULT ANT will furnish copies to the FKAA upon request. The contract work is represented by hard copy documentation; software, is provided to the FKAA for convenience only. Nothing contained in this Agreement shall be construed as limiting or depriving CONSULT ANT of its rights to use its basic knowledge and skills to design or carry out other projects or work for itself or others, whether or not such other projects or work are similar to the work to be performed pursuant to this Agreement. At all times, CONSULT ANT shall retain all of its rights in and to its designs, specification. databases, models, know how, computer software, copyrights, trade and service marks, patents, trade secrets, and any other proprietary property developed or otherwise obtained by or for CONSULTANT independent of this Agreement and any modification thereof ("Pre-existing Intellectual Property"). Rights to intellectual property developed, utilized, or modified in the performance of the services shall remain the property of CONSULT ANT. CONSULT ANT hereby grants to FKAA an irrevocable, nonexclusive, royalty-free license to utilize CONSULT ANT's Pre-existing Intellectual Property provided to FKAA as part of the services.

B. Copies of Documents

CONSULTANT shall prepare sufficient copies of all documents necessary to obtain approval through the FKAA's processes, as well as other governmental authorities. See also Section III for additional requirements. The FKAA acknowledges that the materials cited in Paragraph IX and other data provided in connection with this AGREEMENT which are provided by

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CONSULT ANT are not intended for use in connection with any project other than the project for which such materials are prepared. Any use by the FKAA of such materials in connection with a project other than that for which such materials were prepared without prior written consent and adaption by CONSULT ANT shall be at the FKAA' s sole risk, and CONSULT ANT shall have no responsibility or liability therefore.

C. Insurance

Without limiting any of the other obligations or liabilities of CONSULT ANT, CONSULT ANT shall, at his own expense provide and maintain in force, until all of its services to be performed under this AGREEMENT have been completed and accepted by the FKAA (or for such duration as it otherwise specified hereinafter), the following insurance coverage:

1. Worker's Compensation Insurance to apply to all of CONSULTANT'S employees in compliance with the "Worker's Compensation Law" of the State of Florida and all applicable Federal Laws.

a. Employer's Liability with limits of $ I 00,000 per person, $500,000 per occurrence_and $ 100,000 per each disease.

2. Comprehensive General Liability with m1111mum limits of $ 1,000,000 per occurrence combined single limit for Bodily Injury Liability and Prope1ty Damage Liability. Coverage must be afforded on a fonn no more restrictive than the latest edition of the Comprehensive General Liability policy, without restrictive endorsements other than ISO Endorsement G L 21 06 (Engineers, Architects, or Surveyors Professional Liability exclusion), as Filed by the Insurance Services Office and must include:

a. Premises and/or Operatio ns

b. Independent Contractors

c. Products and Complete Operations - CONSULT ANTS shall maintain in force until at least three years after completion of all services required under this AGREEMENT, coverage for Products and Completed Operations, including Broad Form Property Damage.

d . Broad Form Property Damage

e. Contractual Coverage applicable to thi s specific AGREEMENT.

f. Personal Injury Coverage with minimum, limits of coverage equal to those required for Bodily Injury Liability.

g. Business Automobile Liability with minimum limits of $ 1,000,000 per occurrence combined single limit for Bodily Injury Liability and Property damage Liability. Coverage must be afforded on a form no more restrictive than the latest edition of the Business Automobile Liability policy, without restrictive endorsements, as filed by the Insurance Services Office and must include:

i. Owned Vehicles

11. Hired and Non-Owned Vehicles

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iii. Employer's Non-Ownership

3. Professional Liability Insurance with minimum limits of $1 ,000,000 per claim. Coverage shall be afforded on a form acceptable to the FKAA. CONSULT ANT shall maintain such professional liability insurance until at least one year after a Certificate of Occupancy is issued.

4. Prior to commencement of services, CONSULTANT shall provide to the FKAA Certificates of Insurance evidencing the insurance coverage specified in the foregoing Paragraphs. All policies covered within subparagraphs of section C shall be endorsed to provide the FKAA with thirty (30) days notice of cancellation and/or restriction (ten (I 0) days notice for cancellation due to non-payment of premium). The FKAA shall be named as an additional insured as to CONSULTANTS liability on policies referenced except Workers Compensation and Professional liabi lity.

5. If the initial insurance policies required by this AGREEMENT expire prior to the completion of the services, renewal Certificates of Insurance of policies shall be furnished thirty (30) days prior to the date of their expiration. For Notice of Cancellation and/or Restriction; the policies must be endorsed to provide the FKAA with thirty (30) days notice of cancellation and/or restriction (ten (10) days notice for cancellation due to non-payment of premium).

6. CONSULTANT'S insurance, including that applicable to the FKAA as an additional Insured, shall apply on a primary basis.

D. Litigation Services

It is understood and agreed that CONSULTANT'S services include reasonable assistance with litigation or dispute resolution arising from this AGREEMENT; provided that such services will not require CONSUTLANT to testify or participate as an expert witness in the litigation or dispute resolution. CONSULT ANTS participation shall include up to 20 hours of services related to litigation or dispute resolution. Any such services in excess of 20 hours shall be an additional service.

E. Authority to Contract

The FKAA represents that it is an Agency of the State of Florida with the authority to engage CONSULT ANT for professional services and to accept the obligation for payment for the services described in this Agreement.

F. Assignment

The FKAA and CONSUL TANT each binds itself and its successors, legal representatives, and assigns to the other party to this AGREEMENT and to the partners, successors, legal representatives, and assigns of such other party, in respect to all covenants of this AGREEMENT subject to budget considerations and requirements of law; and, neither the FKAA nor CONSULT ANT will assign or transfer their interest in this AGREEMENT without the written consent of the other.

G. Confidential Information

During all times that CONSULT ANT is employed on behalf of the FKAA and at all times subsequent to the date of this contract, all discussions between the FKAA and CONSULT ANT

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and all information developed or work products produced by CONSULT ANT during its employment and all matters relevant to the business of the FKAA not otherwise being a matter of public record shall be deemed to be confidential. All such information and work product shall be protected by CONSULT ANT and shall not be revealed to other persons without the express written permission of the FKAA, unless mandated by order of the court.

H. Non-Exclusive Contract

The FKAA reserves the right to award projects to other firms pursuant to the Florida Statutes Consultant's Competitive Negotiations Act during the period of service of CONSULT ANT. CONS ULT ANT agrees to cooperate with the FKAA and other firms in accomplishing work that may require joint efforts to accomplish the FKAA's goals. This cooperation, when requested by the FKAA, will include but not be limited to:

1. Sharing technical information developed under contract with the FKAA.

2. Joint meeting for project coordination.

3. Establish lines of communication.

I. Subconsultants

In the event CONSULT ANT, during the course of the work under this AGREEMENT requires the services of any subcontractors or other professional associates in connection with services covered by this AGREEMENT, CONSULT ANT must secure the prior written approval of the FKAA.

J. Notices

Whenever either party desires to give notice unto the other, it must be given by written notice, sent by registered United States mail, with return receipt requested, addressed to the party for whom it is intended at the place last written, as the place for giving of notice in compliance with the provisions of this paragraph. For the present, the parties designate the following as the representative places of giving notice to with:

Florida Keys Aqueduct Authority 1100 Kennedy Drive Key West, Florida 33040

CONSULTANT

Rafael E. Frias III 2855 North University Drive, Suite 2 10 Coral Springs, FL 33065

K. Attachments

Request for Qualifications is hereby incorporated w ithin and made an integral part of this AGREEMENT.

L. T ruth-In-Negotiation Certificate

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Signature of the AGREEMENT by CONSULT ANT shall act as the execution of a truth in negotiation certificate stating that wage rates and other factual unit costs supporting the compensation of this AGREEMENT are accurate, complete, and current. The original contract price and any additions thereto shall be adjusted to exclude any significant sums by which the FKAA determines the contract price was increased due to inaccurate, incomplete, or non-current wage rates and other factual unit costs.

M. Records

Records of all expenses relative to project shall be kept on a general recognized accounting basis and shall be available to the FKAA or its authorized representative at mutually convenient times.

N. Personnel

0.

P.

CONSULT ANT represents that it has or will secure at its own expense, qualified personnel required in performing the services under this AGREEMENT. All work shall be performed under the direction of a professional, registered under the State of Florida in the field for which he is responsible for performing such services. The project manager shall be approved by the FKAA. Key personnel will be identified for each project and expected to perform the work assignment as can reasonably be expected, and as approved by the FKAA.

Equal Opportunity Employment; Non-Discrimination

CONSULT ANT agrees that it will not discriminate against employees or applications for employment because of race, creed, color, religion, sex, age, handicapped status or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recrui tment advertising; lay-off or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. CONSULT ANT agrees to post in conspicuous places, avai lable to employees and applicants for employment, notices setting forth this non-discrimination clause. This provision applies to all CONSULTANT'S subcontractors and it is the responsibility of CONSULTANT to ensure subcontractor's compliance.

Prohibition Against Contingent Fees

CONSULT ANT warrants that he has not employed or retained any company or person, other than a bonafide employee working solely for CONSULT ANT, to solicit or secure this AGREEMENT, and that he has not paid or agreed to pay any persons, company, corporation, individual or firm, other than a bonafide employee working solely for CONSULT ANT any fee, commission, percentage, gift, or any other consideration, contingent upon or resulting from the award or making of this AGREEMENT.

Q. Termination

This AGREEMENT may be terminated by either party by seven (7) calendar days prior written notice, in the event of substantial failure to perform in accordance with the terms hereof by the other party through no fault of the terminating party. CONSULT ANT and the FKAA shall also have a right to terminate this AGREEMENT for convenience at any time by thirty (30) calendar days written notice to either one or the other. In the event the project described in this AGREEMENT, or the services of CONSULT ANT called for under this AGREEMENT, is or are suspended, canceled, or abandoned by the FKAA, CONSULT ANT shall be given five days prior

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written notice of such action and shall be compensated for the professional services provided and reimbursable expenses incurred up to the date of suspension, cancellation or abandonment. CONSULT ANT agrees to provide all documents to the FKAA (specifically those referenced within). Further, prior to CONSULTANT'S destruction of any of the above referenced documents, the FKAA shall be notified and allowed a reasonable period of time to gain access to and make copies of any such documents. Upon any termination of this AGREEMENT, CONSULT ANT agrees that it shall use its best efforts to work harmoniously with any successor who enters an AGREEMENT to provide services for the FKAA in order to provide for a smooth transition period.

R. Indemnification

CONSULT ANT will at all times indemnify, save and hold harmless and defend the FKAA, its officers, agents (the term agents shall not include the CONTRACTOR(s), any subcontractors, any materialman or others who have been retained by the FKAA or CONTRACTOR, or materialman to supply goods or services to the project) and employees, from and against liability, claim, demand, damage, loss, expense or cause of action and costs based upon third party claims (including attorney's fees at trail or appellate levels) relating to property damages and personal injury to the proportionate extent arising out of negligent action of CONSULTANT, its agents, servants or employees in the performance of services under this AGREEMENT. The indemnifications contained herein shall survive the expiration or earlier termination of this AGREEMENT

Nothing in this AGREEMENT shall be deemed to affect the rights, privileges and immunities of the FKAA as set forth in Florida Statutes 768.28.

S. Interest of CONSULT ANT

CONSULT ANT covenants that it presently has no interest and shall not acquire any interest, direct or indirect, in any Project to which this AGREEMENT pertains or any other interest which would conflict in any manner or degree with the performance of its service hereunder. CONSULTANT further covenants that in the performance of this AGREEMENT, no person having such interest shall be employed.

T. Prohibited Practices

CONSULTANT during the period of this AGREEMENT shall not hire, retain, or utilize for compensation any member, officer, or employee of FKAA or any person who, to the knowledge of CONSUL TANT, has a conflict of interest.

U. Compliance With Laws

I. CONSULT ANT shall comply with the applicable requirements of State, Federal and applicable County laws and all Codes of Ordinances of the local municipality as amended from time to time, and that exist at the time of building permit issuance.

2. For Projects involving work under Federal or State Grantors or Approving Agencies, the FKAA and CONSULT ANT shall review and approve the applicable required provisions or any other supplemental provisions as may be included.

V. Jurisdiction; Venue

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CONSULTANT hereby covenants, consents and yields to the jurisdiction of the State Courts of the l 61

" Judicial Circuit, in and for Monroe County, Florida. Any dispute between CONSULT ANT and the FKAA shall be governed by the laws of Florida with venue in the State Courts of the 16111 Judicial Circuit, in and for Monroe County, Florida.

W. Attorney's Fees

ln the event a suit is filed in court arising out of this AGREEMENT, the prevailing party shall be entitled to recover from the other pa1ty all costs incun-ed, including reasonable attorney's fees and costs on appeal.

X. Internal Dispute Between FKAA and Consultant

The Executive Director shall be the I decision maker regarding internal disputes between FKAA and CONSULTANT;provided that this will not limit or waive either Party's right to seek review ofor relief from such decision as stated in section IX.V.

Y. Project Scheduling

CONSULTANT shall provide scheduling to FKAA, within ten (10) days of the date of commencement as contained within this AGREEMENT. During the course of the work, CONSULT ANT shall provide monthly updates with a written description of any changes in the schedule.

Z. Extent of Agreement

T his AGREEMENT represents the entire integrated AGREEMENT between the FKAA and CONSULT ANT and supersedes all prior negotiations, representations or AGREEMENTS, written or oral. This AGREEMENT may not be amended, changed, modified, or otherwise altered in any way, at any time after the execution hereof, except by approval of the FKAA Board of Directors and CONSULT ANT.

AA. Audit and/or Access to Records

l . At all times during the period that the CONTRACT is in force and for a period of not less than three (3) years thereafter, the CONTRACTOR shall provide all authorized representatives of the FKAA with full access/audit to all its financial records that pertain to services performed and determination of amounts payable under the CONTRACT including access to appropriate individuals with knowledge of financial records and full access to all additional records, that pertain to services performed and determination of amounts payable under the CONTRACT, permitting such representatives to examine, audit and copy such records at the site at which they are located. Such access/audit shall include both announced and unannounced inspections and on-site audits.

2. Audits conducted under this provision shall be in accordance with generally accepted auditing standards and within established procedures and guidelines of the reviewing or auditing agency.

3. This right to access/audit clause applies to financial records pertaining to all contracts, all contract change orders, and all contract amendments . In addition, this right to access applies to all records pertaining to all contracts, additional work clause items and contract amendments.

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4. To the extent the records pertain directly to contract performance. If there is any indication that fraud, gross abuse or corrupt practices may be involved; or if the CONTRACT is terminated for default or for convenience.

5. If an audit, litigation, or other action involving the records is started before the end of the three (3) year period, the records must be retained until all issues arising out of the action are resolved or until the end of the three (3) year period, whichever is later.

BB. Limitation of Liability.

Neither party shall be liable to the other party for loss of profits or revenue; loss of use; loss of opp01tunity; loss of goodwill; cost of substitute facilities, goods or services; cost of capital; cost of replacement power; governmental and regulatory sanctions; and claims of customers for such damages; or for any special, consequential, incidental, indirect or exemplary damages whether a claim for any such loss arises out of breach of contract, warranty, tort (including negligence), strict liability, indemnity, or another theory. Except for an obligation to make payments, neither patty shall be in default to the extent any nonperformance is caused by a circumstance beyond such patty's reasonable control. The warranties, obligations, liabilities and remedies of the parties, as provided herein, are exclusive and in lieu of any others available at law or in equity. CONSULTANT's total aggregate liability under this Agreement shall not exceed the compensation received by CONSULT ANT under the Scope of Services. To the fullest extent allowed by law, releases from, and limitations of liability shall apply notwithstanding the breach of contract, tort including negligence, strict liability or other theory of legal liability of the party released or whose liability is limited. The benefit of such releases, waivers, or limitations of liability shall extend to the affiliates, successors, assigns and subcontractors of each party, and the directors, officers, partners, employees, and agents of such patties and their affiliates and successors and ass igns.

IN WITNESS WHEREOF, the FKAA has caused these presents to be executed in its name by its Executive Director, and attested and its official Seal to be hereunto affixed by its Records Clerk, and CONSULT ANT has hereunto set its hand and Seal the day and year first written above:


Date ---------Kirk C. Zuelch, Executive Director

Date ----------Reviewed by: Legal Counsel

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::E?~ Witness:__::~:;;,i---~~==:....:.. ·---=~=----Rafael E. Frias

Witness:~~

BOARD APPROVAL DATE: ------------

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CORPORATE ACKNOWLEDGMENT STATE OF FLORIDA

COUNTY OF MONROE

The foregoing instrument was acknowledgment before me this day of 20_, by (name of officer or agent title of officer of agent, of (name of corporation acknowledging), a (State or place of incorporation) corporation, on behalf of the corporation. He/She is (personally know to me) (or has produced identification) (type of identification) as identification and (did/did not) take an oath.

Signature of Person Taking Acknowledgment

Name of Acknowledger - Typed Printed or Stamped

22

ACKNOWLEDGMENT IF PARTNERSHIP STATE OF

COUNTY OF

The foregoing instrument was acknowledged before me this day of by (name of acknowledging partner or agent) of (name of partnership), a partnership. He/she is (personally know to me) (or has produced identification) (type or identification) (as identification) and (did/did not) take an oath.

Signature of Person Taking Acknowledgment

Name of Acknowledger - Typed Printed or Stamped

BOARD APPROVAL DATE _____________ (Required if under $ 10,000.00)

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~ . BLACK&VEATCH Florida Keys Aqueduct Authority (FKAA)

OPCC Stock Island RO Facility

Scope of Services

I. BACKGROUND

The Florida Keys Aqueduct Authority (AUTHORITY) operates four (4) water treatment facilities to meet

its water supply needs. Two water treatment pl ants at Florida City - one lime-softening (source:Biscayne

Aquifer) and one brackish RO (source: Floridan). Seawater from wells is desalted using RO membrane

technology at two emergency water supply plants, the Kermit H. Lewin Seawater Desalination Facility at

Stock Island and the Marathon Seawater Desa lination Facility at Marathon.

The Stock Island seawater RO facility was originally constructed in the early 1980s with a capacity of

three (3) mgd. Today, the Stock Island desalting facility has a nominal capacity of two (2) mgd, consisting

of four (4) parallel RO membrane trains.

The AUTHORITY is focusing on est ablishing a more resilient system by planning for improvements to

seawate r treatment systems, proactively reducing risk for more reliable supply. Part of said

improvements includes upgrades and expansion of the Kermit H. Lewin Seawater Desalination Facility,

and consideration of new building codes and st andards

AUTHORITY has requested Black & Veatch (CONSULTANT) under this Genera l Engineering Services

Contract Agreement, to develop Opinion of Probable Construction Costs (OPCC) for three (3)

altern atives for the Stock Island Reverse Osmosis Facility as follows;

1. 2MGD Capacity with new equipment but utilizing existing building and membranes 2. 2MGD Capacity with new equipment, building, and membranes 3. 4MGD Capacity with brand new equipment, membranes, and building

II. SCOPE OF SERVICES

Phase 100: Project Coordination Task 101 - Project Initiation Meeting

CONSULTANT will conduct a project initiation meeting at AUTHORITY'S office to clarify the

requirements for the project, review pertinent available data, review project staffing and

organization, present initial work plan, and present initial work schedule.

Task 102 - Project Controls and Team Coordin ation

CONSULTANT will perform general administrative duties associated with the Project, including

project set-up, resource management, progress monitoring, scheduling, QA/QC plan development

and updating, general correspondence, office administration, and invoicing.

1



Scope of Services

CONSULTANT will maintain an accurate project documentation and project cost accounting system

throughout the project to include the following:

• Maintain a project filing system throughout life of Project to use for storage and retrieval of Project documents.

• Prepare status reports and invoices for engineering services in format acceptable to AUTHORITY. Status reports will include a summary of work completed during the previous month.

CONSULTANT will update the project execution schedule based upon the AUTHORITY Notice to

Proceed date and distribute the updated schedule at the project initiation meeting. The project

schedule will identify the following information:

• Key project tasks and deliverables.

• Meetings.

CONSULTANT will review, update and submit to AUTHORITY updated Project schedule upon

completion of each Project Phase. Each updated schedule will track original target completion

dates.

Task 103 - Design and Cost Review Meetings

CONSULTANT will prepare for and conduct (via telephone) up to two (2) review meetings. These

meetings are to be held within a week after the submittal of the Draft and Final OPCC. CONSULTANT

will prepare and distribute meeting minutes.

Task 104 - Quality Assurance/Quality Control (QA/QC)

CONSULTANT will maintain continuous control over the quality of all work effort and project

deliverables. This will include oversight and review by the lead technical engineer(s), project

manager, and senior technical specialists. In addition to this overall level of quality assurance,

CONSULTANT will provide specific review and quality control throughout the project at key project

milestones.

Phase 100 Deliverables:

• Meeting minutes • Status reports with invoices

• Project schedule updates

2



Scope of Services

Phase 200: Data Evaluation CONSULTANT will review gathered Kermit H. Lewin Seawater Desa lination Facilities Rehabilitation &

Expansion TECHNICAL MEMORANDUMS from AUTHORITY. Additionally, as part of this t ask,

CONSULTANT will conduct a site visit accompanied by AUTHORITY's representative.

Phase 3 00: Development of Opinion of Probable Construction Costs (OPCC) CONSULTANT will prepare and submit a project OPCC for each of the 3 alternatives for the Stock

Island Reverse Osmosis Facility according to AACE International Recommended Practice No.17R-

97A. The OPCC will be organized through a project Work Breakdown Structure (WBS). The WBS will

be established to incorporate OWNER standard price schedule items for the project.

CONSUL TANT shall prepare the OPCCs as follows: Class 4 OPCC per t he Association for the

Advancement of Cost Consulting International (AACE) Recommended Practice No.17R-97 A, inclusive

of: preliminary quantity takeoff, equipment and unit cost estimates, and -30% to +50% expected

accuracy level. OPCC's will be presented in spreadsheet format.

Cost estimates presented by CONSULTANT will be accompanied by an Estimate Report, which will

consist of the basis of estimate, notes, clarifications, assumptions, inclusions, and exclusions made

in preparing the estimate.

Deliverables

• Draft OPCC and Estim ate Report • Final OPCC and Estimate Report

III. SCHEDULE

Task completion schedule is 8 weeks from Notice-to-Proceed as identified in the following summarized schedule of deliverables.

Phase Deliverable Description Completion in

Weeks after NTP

100 Project Coordination 8

200 Data Eva luation 2

300 Development of Opinion of Probable Construction 8 Costs (OPCC)

3



Scope of Services

IV. COMPENSATION

CONSULTANT agrees to provide the scope of services above in a Lump Sum amount of $44,126 (in

accordance with General Engineering Services Contract) for Phases 100 through 300 and Time &

Materials Expenses in the amount of $1,600. Invoices wil l be submitted monthly based on

CONSULTANT's percen( complete (Lump Sum). CONSULTANT will manage work hours between tasks

and employee classifications, and/or utilize other appropriate employee classifications, provided that

the work assignment total compensation is not exceeded.

The fees for the scope of work under this work order are listed in the following table.

Phase Description Method of Payment Amount

100 Project Coordination Lump Sump $5,663

200 Data Evaluation Lump Sump $3,508

300 Development of Opinion of Probable Constru ction Costs

Lump Sump $34,955 (OPCC)

Subtotal: Lump Sump $44,126

Reimbursable Expenses Time & Materials $1,600

Subtotal: Time & Materials $1,600

Project Total : $45,726

See attachments for the compensation breakdown.

V. ASSUMPTIONS Work described herein is based upon the assumptions listed below. If conditions differ from

those assumed in a manner that w ill affect schedule or Scope of Work, CONSULTANT shall

advise AUTHORITY in writing of the magnitude of the required adjustments. Changes in

completion schedule or compensation to CONSULTANT wi ll be negotiated with AUTHORITY.

1. CONSULTANT wil l be producing these alternative prices w ith our Design build group estimators

that are at risk estimators that will produce estimates that are comparable to the Design builder

that the owner is comparing to with extensive experience in the Florida Keys market place that

is truly unique to any market in the state of Florida due to the logistics' of doing work in the said

location that has distinct challenges to attach craft labor, house said labor, as well as difficulties

4



Scope of Services

in materials deliveries and such.

2. AUTHORITY will provide CONSUL TANT record drawings of all available existing facilities in the

project area.

3. CONSULTANT assumes that there are no contaminated soils or groundwater in the project area.

4. CONSULTANT assumes no wetlands are in the project area.

5. CONSULTANT assumes the project area is not on Sovereign Submerged Land.

VI. EXCLUSIONS 1. Design consultants are not responsible for engineering the aforementioned Stock Island

Reverse Osmosis Facility alternatives

2. CONSULTANT will not provide Value Engineering as part of the task

AUTHORIZATION


Date. _______ _

Kirk C. Zuelch, Executive Director

Date ________ _

Jolynn Reynolds, P.E., Manager of Engineering

BLACK & VEATCH CORPORATION

Date_---'-M'""'a""y"""S~1~2~01=8~--Ricardo Vieira, P.E.

Project Manager. Client Director, South Florida

5

li1J. BLACK&VEATCH Florida Keys Aqueduct Authority (FKAA)


Scope of Services

Attachment A Engineering Services Labor and Expense

6

I Exhibit A - Fee Summary by l ask Florida Keys Aqueduct Authority

~ - BLACK & VEATCH OPCC Stock Island RO Facility Project Task/Level of Effort Development Table

Re[!rese ntative level of Effort: This data is provided for inform ational purposes only, iind it is not intended t o be restrictive in the performance of the Work Scope.

Engineer 5 Enginel!!r 3 (Lead Analyst (Project Analyst Ensineer 5 (Cost Totaf B&V Pri ncipal (Senior technical technical Clerical Total Task Labor Expe nses Subconsultant Fee Total Task Cost

specialists) engineer) Control) (St aff Engineer) Est imator) Hours

!Task Description

100 Project Coordination

101 Project Initiation Meeting 2 2 2 2 8 Sl.217 $200 Sl.417 102 Project Controls and Team Coordinat ion 2 2 2 3 9 $1,297 $1,297 103 Design Review Meetings 2 4 2 2 10 $1,502 $1,502 104 Quality Assurance/ Quality Control (included in individual tasks) 2 4 2 8 $1,648 $1,648

Subtotal 8 4 10 2 4 7 35 $5,663 $200 $5,863 200 Data Evaluation

301 Data Evaluation 2 8 16 26 $3,508 $1,200 $4,708 Subtotal 2 a 16 26 $3,508 $1,200 $4,708

300 Oevelopment of Opinion of Probable Construction Costs (OPCC)

Draft Opinion of Probable Construction Cost 1 8 120 129 $25,937 $200 $26,137 Final Opinion of Probable Construction Cost 1 4 40 45 $9,017 $9,017

Su btotal 2 12 160 174 $34,955 $200 $35,155 ,-..ectTotal u 4 30 2 20 160 7 235 44U6 1600 45726 Billable: Rates $273.00 $ 204.39 $142.20 $114.00 $ll4.00 $204.39 $79.38

SCHEDULE OF HOURLY RATES EXHIBIT B - BLACK & VEATCH

Range of Hourly Raw Salary Rates

Employer Category Avg. Raw Rate

Average Hourly Raw Salary Rate Times 3.00 Multiplier

At 3.00 Mutt.

Professionals: Engineers, Architects, Planners, Economists, Scientists, Hydrologists, Hydrogeologists, Geologists

Engineer 9 Engineer 8 Engineer 7 Engineer 6 Engineer 5 Engineer 4 Engineer 3 Engineer 2 Engineer I Analyst Senior Analyst Consultant Manager Principal Director

$102.09 $ 98 .69 $ 96.22 $ 81.05 $ 68.13 $ 58.23 $ 47.40 $ 41.68 $ 39.97 $ 38.00 $ 48.00 $ 53.00 $ 75.00 $ 91.00 $117.00

$306.27 $296.07 $288.66 $243.15 $204.39 $174.69 $142.20 $125.04 $119.91 $114.00 $144.00 $ 159.00 $225.00 $273.00 $35 1.00

Technicians: Drafters, Graphic Artists, Computer, Surveyors, Cartographies, Construction Inspectors

Technician 5 Technician 4 Technician 3 Technician 2 Technician 1 Technical Aide

Project Manager

Office Support

Specification Processor Clerical/Office Support

Note: Rates applicable through Apri l 2018.

$ 58.23 $174.69 $ 49.69 $ 149.07 $ 45.78 $137.34 $ 37.75 $1 I 3.25 $ 34.69 $104.07 $ 29.21 $ 87.63

$ 94.16 $282.48

$ 33.02 $ 99.06

$ 26.46 $ 79.38


AGENDA ITEM: DUO- OY CONSENT: D REGULAR: ~


AGENDA TITLE: Consideration to approve the award of IFB-0007-18 to Ferguson Waterworks for the purchase of pipe for water construction activities related to the College Road, Stock Island Project# 2328-17 by the FKAA Construction Crew in the amount not to exceed $174,000.

ITEM BACKGROUND: The FKAA Construction Crew will be installing and upgrading the water system on College Road, Stock Island. FKAA advertised IFB-0007-18, Purchase of 10", 12" and 16" PVC Pipe in the newspaper, website, and Demand Star. Five (5) bids were received. The lowest, responsible, responsive, and qualified bidder was Ferguson Waterworks with a total cost of $173,934.40. Results are summarized below.

Bidder's Name

A&B Pipe

Ferguson Waterworks

Fortiline Waterworks

Core & Main

Total Price

Western Natural Gas Products

$194,224.00

$173,934.40

$200,560.00

$205,298.40

$279,660.00

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: Board approved Capita l Improvement Plan - Distribution as part of 2018 Budget.

STAFF RECOMMENDATION (MOTION): Staff recommends that the Board of Directors approve the award of IFB-0007-18 to Ferguson Waterworks for the purchase of pipe for water construction activities related to the College Road, Stock Island project by the FKAA Construction Crew in the amount not to exceed $174,000.

SUPPLEMENTAL INFORMATION: See attached. It is estimated that approximately 10,000 linear feet of pipe will be required to complete the water system on College Rd in Stock Island.

DOCUMENTATION: Included: CK] To-Follow: D Not Required: D Cost to FKAA: $

$ 173,934.40 BUDGETED: Yes [KJ No CJ

Cost to Others: Total Cost: $ __ 17_3~,9_34_._40_

DEPARTMENT: Engineering DEPARTMENT DIRECTOR APPROVAL:

DIVISION DIRECTOR APPROVAL:-=-::.1:.~~~--------:------------r.

General Counsel: £:(f Executive Director~ Reviewed by: Internal Auditor: ___ _

BOARD ACTION:


Comments: ___________ ______________________ _

Date: ___________ _ Recording Clerk: _______ ______ _

Florida Keys Aqueduct Authority 1100 Kennedy Drive Key West, Florida 33040 d Telephone (305) 296-2454 ~

www.fkaa.com ~\\ 'i ~ e, w~\i &Jblj)~ ,,, ..•

~£5)

MEMORANDUM

TO: Jolynn Reynolds, Manager of Engineering

FROM: Krystal Waldner, Purchasing Office Administrator

DATE: May 10, 2018

SUBJECT: FKAA-IFB-0007-18, Purchase of PVC Pipe

/

p

J. Robert Dean Chairman District 3

Antoinette M. Appell Vice-Chairman District4

David C. Ritz Secretary/Treasurer District 5


Richard J.Toppino District 2


Subject bid opening was conducted on May 10, 2018. This bid was advertised once in one newspaper, as well as being published on the Authority's website, and Demand Star. Five bids were received, which are as follows:

Vendor A&B Pipe Ferguson Waterworks Fortiline Waterworks Core&Main Western Natural Gas Products

Total Price $194,224.00 $173,934.40 $200,560.00 $205,298.40 $279,660.00

It is recommended that we award the bid to Ferguson Waterworks as the lowest qualified bidder for this product. Please see the attached bid for your review. Please ensure that a purchase order is generated upon acceptance of the recommendation.

X ACCEPTED: ____ ____ UNACCEPTED: ________ Reason for Not

Digitally signed by [email protected] j O reyn O Id s@fka a .c Om ON: [email protected]

Accepting Bid: _______ _________ o_a_te_: 2_0_1a_.o_s_., _o _16_:s_3:_19_-_o4_'o_o_· ____ _

General Counsel' s Signature (If Bid Not Accepted): ---------- - --- - -

FLORIDA KEYS AQUEDUCT AUTHORITY INVITATION TO BID: COMMODITIES/SERVICES

(BIDDERS ACKNOWLEDGMENT)

MAIL BIDS TO: FlORU)A KEYS AQUEDUCT AUTHORITY 7000 Front St. (Stock Island) KEY WEST. FLORIDA 33040 (No USPS dcti,·uits, FtdE.x and UPS only.)

bage I of 4 (305) 296-2454 PROJECT # flLE # BID #-fKAA-IFB-0001-18 BIDS WILL BE OPENED: May IO" , 2018 at 4:00pm BID TITLE: Purchase of 10", 12' ' and 16" PVC Pipe for Project 2328- 17

7000 Front St. Key West, FL 33040 1'0 USPS Dcli\'cry, fed Ex or UPS ONLY

;ind may not be withdrawn within days atler such datt and time. -· ..... Dcliverv Date Will Be ~Ll O:.ws Aft,;r Rcctipt of Purchase Order.

NAME orvENDOR: T~'{ln.A~\~ ~ /\x~\N:"1 .. 'c. \ MAILING DA 'IE: ~\ \ t\\\\ \~\\) \k'\ \ Yl\.\ \\ ~\

-MAIUNG ADDRl!SS:

CITY-STATE-ZlP: ""'--s A ,tv:., , ~ ~~\"1 CERTIFTED OR CASHfER'S CHECK JS ATTA.Cl-tEO. WHEN REOUJRED. IN THE AMOUNT OF S

TELEPHONE NUMBER: ~\':)\ - 't \K- \ \:)\ ·7 FAX Nl MBER: )\)" - G\ ~' - ~,~\ I certify that this bid is made without prior understanding, agreement, or PIY-

connection wirh any corporation, tinn, or person submitting a bid for rhc same Authori till Signature (Manual) materials, supplies, or equipment and is in all respects fair and without collusion

1:J~~ ~ ~~ ! \\~U \-:. I or fraud. \ ag1cc to abide by all condition; of rhis bid and certify that I arn

Sb'-\~ authorized to sign this bid for the bidder and that the bidder is in compliance with al\ rcqui~mi:ms of the Invitation to Bid, including but not limited to, Authorized Signature (Typed) and Title

C

certification requirements.

GENERAL CONDITIONS BIDDER: To insure acccntanc<: or the bid follow these in.,tructioos

SEALED BIDS: This fonn must be executed and rerumed with one copy of all 3 BrD OPE:,./ING: Shall be public, on tl,c date and at the time spccifo,d on bid sheets, as well as all addenda acknowledged. n,e face of \he envelope shall the bid fOllll. All bids received after that time sha ll bccorue the property contain, in addition ro the above address, the date and time of the bid opening, of the Authoriry and remain unopened. It is lhe bidder's responsibility to and the bid number. Do nm include more than one bid per envelope. All bids arc assUTc his bid is delivered at the proper time and pl~cc of the bid subject to tl1e conditions specified herein. Those that do not comply with these opening. Offers by facsimile, telegram or telephone are not acceptable. conditions arc subject to rejection.

4. PRICES QUOT ED: Deduct trade d iscounts and quote fim1 net prices. I. EXECUTION OF BfD: All bids must contain a manunl signature of an Unless ~dlc.rwisc specified, all prices quoted in this bid will rcn1ain fim1

authorized representative in the space provided ~bovc to be considered for a pcr:iod of 60 days. Give both unit price and extended total. In case fonnal. TI1e company name mu51 also appc11r on each page of the bid as of a mistake in cxtcnsioM, d,c uni\ price w ill take precedence. All prices required. F.O.B. destination (unless otherwise specifi ed in special conditions).

2. NO BID: lf Ml ~ubmittit1i a bid, respond b)I rciuming one copy of this Prices and extensions should be t)'!>cd or prin\cd in ink..

fo,m, marking it "NO BID". and explain below the reason. Repeated failure a) TAXES: The FKAA docs not 1>ny federal excise 11nd sutc sales taxes. to quote without sufficient just.ification shall be cau~e for removal of a Do not include these items on invoices. TI1c applicable tax exemption supplier's name from the bid mailing list. NOTE: ,\ bidder; to qualify as a number is sb0\'11 on purchase orders. respondent, must submit a "NO BID", and s.ame must be received no later b ) DISCOUNTS: Cash di,counts for prompt payment shall 001 be than the stated bid opening date and hour: considered in detem1ining the lowest net cost for proposnl ewluation

purposes. c) MISTAKES: Bidders are c,xpectcd to examine the specifications,

REASON FOR "NO BID": delivery schedules, bid prices and extensions, and all instructions pertaining 10 supplies and services. Failure to do so will be at the bid.de,:'$ risk. In case of mislolte in the extension the unit price will govern.

d) CONDITION AND l'A.CKAGCNG: 11 is understood and agreed chat any item offered or shipped aS a result of thi~ bid shall be new (current production model at llle time of this bid). uni~ otherwise specified. All containers shall be suitable for storage or shipment, and all prices shall include standard commercial packaging.

GENERAL CONDITIONS CONTINUED

4. (Continued) e) SAFETY STANDARDS: Unless otherwise slipulated in ll1c bid, all

manufacrured items ind fabricated assemblies shall comply wilh applicable requirements of Occupational Safety and Health Act and (lny standards thereunder.

0 BTDDER'S CONDITIONS: Any condilions to be mllde as part of Ute bid, should be submitted by letter with notes thereof on bid sheet for consideration.

g) \>ATh.fE),T: The vendor shall be paid upon submission of properly ceni fied in\loiccs al the prices stipol:ued on the bid, ~fter delivery nnd acceptance of the goods and.lor services, less deduclions if any, a,; provided.

5. EQUCV A.LENTS: U11l<:f>S otherwise specified, any manufacrurer's name, trade nomes, brand names, information and/or catalog numbers listed in a specification are for information and not to limit compC'!.ition. Bid any bractd which meets or exceeds lhe quality oi specifications listed for any item. If lhe bid is based on equivalent products, indicate on the bid fonn the manufacrurer's name and number and indicate any dcvialion from lhe specifications as lisled. IJJclude fully descriptive literature on i\em(s). Lacking any \\Tittcn indication of inlent to quote an alternate brand or model number, the bid will be considered as a quwtion in complete compliance with the specifications listed in lhe fo11!1. The FKAA reserves the right lo dctcnnine acceptance of ilcm(s) as an approved equivalent.

6. NONCONfORMANCE TO CONTRACT CONDITIONS: hems may be tested for compliance with spccificalions under the direction of the Florida Depanmc:1\1 of Agriculture and Consumer Services. Items delivered not confonning 10 specifications may be rejcclcd and returned at vendor's ci<pellsc. These items and items not delivered as per delivery date in bid and/or purchase order may be purchased on the open mnrkct. ACiy increase in cosl may be cnatgcd 11gainst \he bidder. N•y violation of these stipulations may also result in the vendor's name being removed from lhe FKAA vendor li5t.

7. SM! PLES: Samples of items, when required, muSI be furnished free of expense and, if not destroyed, will, upon rcque~t, be returned. at tl1e bidder's expense. Request for the ret\lITI of samples mu;t be submit!ed by lelter with notes thcr~of on bid sheet. Each individual sample must be labeled with bidder's name, bid number. md iletn number. failure of bidder to eilher deliver required ,arnples or to clearly identify samples as indicaled may be reason for rejection of the bid.

8. DELIVERY: Unless actual date of delivery is specified (or if specified delivery cannot be met), show number of days required to make deli\lery afier receipt of purchase order in space provided. Delivery lime may become a basis for m?-king an award (see Special Conditions). Deli\lery shall be wi1hin the normal working hours of the FKAA, Monday through Friday, excluding hol~ys. UPQn deli very \he 'FKAA has five working days lo inspect :md approve tbe goods and services, unless bid specifications or purchase order specify otherwise. fnspccLion and accept:ince will be a\ destination unless olherwise provided. Title 11:J!or risk of loss or damage to a ll items shall be the responsibility of the successful bidder until acccp\ancc by the FKAA unless loss or d!rnage results from negligence by the FKAA.

9. INTERPR£TATIONS/D1SPUTES: Any questions conceming conditions and specifications should be submilled to lhe buyer no later than five (5) days prior 10 the bid opening, Any person who is adversely affected by a decisioo or in\tnded decision shall be subject to the FKAA ·s procedures for Bid Protescs (48-10 1.1 l). fn case of any doubt or difference ofopinion a.Ho the items 10 be furnished hCTeunder, the dcci~ion of the 'FKAA shall be final and binding on both parties.

l O A WARDS: The FKA.A. ce$Crv<:& the right to accept any Bid or combination of Bid alternates which. in the FKAA 's judgement will best serve lhe FKAA ·s interest, reject any and all Bids, to wai'le any and a\l infonnalitics and/or irregularities, and to ucgotiatc contract terms with the Successful Bidder, and the right to disregard all nonconforming, I\On-rc:.pon,ivc, unbal:111ccd or conditional Bids. The FKAA reserves the right to reject any one or all Bids, or any part of any Bid, to W-Jivc any infonnality in any Bid, and lo award the purchase in lhc best intcrcsl of lhe FKAA. Discrepancies in lhe multiplicaliOn of units of work and/or unit prices will be resolved in favor of the unit price.

Diserepancies between lhe indicated sum of aoy column of figures and lhe concel sum thereof will be resolved in favor oflhc correct sum. Within 60 calendar days after the: opening of Proposals, unless otbenvise stated in the Supplementary Conditions of the Docurnems, the FJ<AA will issue notice that it intends lO accept one of the proposals or will award the contracl lo the lowcs1 'Base Bid. Acceptance of the Proposal by 1he FKAA will be by wrinen Nolice of Award, mailed or delivered to the office designated in 1he Pcoposa\. ln the event of the failure of the lowest responsible ond responsive bidder to med the requircmems of the Bid, the FKAA may award the Contract to the next \owe~t rc5ponsib\c and responsive Bidder. Such award, if made by the FKAA will be made within 60 days afier the opening of Proposals.

11 . ADVERTISING: In submit1ing a proposal, bidder agrees not to use the resul ts I.here from as a part of any commercial advertising.

12. GOVERNMENTAL RESTRICTIONS: lo 1he event any govemmcnlal restrictions may be imposed which would necessitate aJteralion of lhe material, quality, workmanship or performance of items offered on this bid prior to their delivery, it shall be lhe responsibility of the vendor to notify the FKAA at once, indicating in his letter the specific regula1ion which required an alteration. The FKAA reserves the right to accept any such alteration, including any price adjustments, or to cancel the contract al no further expense to the FKAA.

13. ASS!Gt-.'ME...'-H: Any purchase order issued pursuant to this bid invib1ion and ihe monies which may become due arc not assignable except ,~ith prior ",iu~n ap9roval .:iftnc FKAA.

14. CONFLICT OF INTEREST: The award hereunder is subject to Chapter 112, Florida Statutes, wherein it stales, in part: " ... all biddm mus\ disclo:1e with tl1eir bid lhe name of any officer, dil\.--ctor, or agent who is also an employee of the FKAA. All bidders musl disclose the name of any employee who owns directly or indirectly an interest of 5% or more in 1he bidder's firm or uny ofiis branc~s ... "

15 LEGAL REQUIREMENTS: Applicable provision of all Feder:il, State, county and local laws, and of all ordinances, rules, and regulations shall govern any und all claims and dispules which arise between pcrson(s) submitting a bid response hereto an the FKAA, by and through its officers, employee~ and aulhc,ri:zed representatives, or any other person, natural or othciwisc: and lack of knowledge by any bidder shall not constitule a cognizable ddcll.SC 1.gainst the legal effe~1 thereof. PATENTS & ROYALTIES: The bidder without exccprion, shall indemnify and save b.acmlcss, the FKAA and i~ employees, from liabili1y of nny natllJ'e or kind. including cost and expenses for or on account of any copyrighted, paterued, or unparcnted invention, pl'OCcss, or article manufaclured or used in the performance of the conlract, including its use by the FKAA lhe bidder uses any design, device, or materials cov<::rcd by leuers, palcnt or copyrighl it is mutually agreed and understood without excep1ion that the bid prices shall include all royalties or cost arisiug from the use of such design, device, or materials in any way involved in lhework.

\ 7. SER VICE AND WARRANTY: Unless olherwise specified. lhe bidder shall define any warranty service and replacements that will be provided.

18. EUGlBLE ENTITIES: 'Paragraph (2) (a), Seclion 287.133, Florida Starutes provides that "A person or affiliate who has been placed on lhe convicted vcndi:lc list following a co,wietion for a public enthy crime may not submit a bid on a conlract to provide any goods or services to ~ public entity, mny nol submit n bid on a con\t1et wi\h a public cnthy for lhe consuuction or repair of a public building or public work, mgy not submit bids on leases of real property to public entity. may not be awaidcd or perform work as a contractor, supplier, subconcraelor, or consultanl under a contract Y.ith any public entity, and may not transact busioess with any public entity in excess of the threshold amount provided in Sec1ion 287.017, for CATEGORY TWO fora period of (36) months from the date of being placed on the convicted vendor list "

19. UABIL!TY: The supplier shall hold :md save lhe FKAA, ils oflicers, agents, and employees hannlcss against claims by third parties resulting from the vcndor·s breach of contract or lhe vendor' s negligence.

NOTE: ANY AND ALI., SPECIAL CONOITJONS AND SPEClF!CATIONS A ITACHED HERETO WHICH VARY FROM THESE

GENERAL COND\TlONS SHALL HAVE PRECEDENCE.

2


IFB-0007-18

PliRCHASE OF PVC PIPE

The Florida Keys Aqueduct Authority seeks to purchase 1 o•·, 12", and 16" PVC pipe for project 2328-17 as specified in the desc1iptions below, no substituti.ons will be accepted:

PlPE DESCRIPTIONS - to•·. 12". and 16"

PIPE, C-900, 10", DR-18 CLASS l 50, BELL END WI EPDM GASKT, COLOR: BLUE, (20 FT LENGTHS ONLY).

PIPE, C-900, 12", DR-18 CLASS 150, BELL END W/ EPDM GASKET, COLOR: BLUE,(20 FT LENGTHS ONLY).

PIPE, C-905, 16", DR-18 CLASS 150, BELL END W/ EPDM GASKET, COLOR: BLUE, (20 FT. LENGTHS ONLY).

- All bids must be firm for a period of 6 months from the bid date.

All bids must be FOB destination to either of the addresses below:

Lower Key Warehouse 7000 Front St. (Stock Island) Key West, FL 33040

A firm delivery date is required.

Questions and Clarifications

Questions regarding this bid should be directed in writing via email to David Jackson, Purchasing Manager at [email protected].

Bid Requirements

Bids must be signed and clearly marked on the outside, "FKAA-IFB-0007-18 Purchase of PVC Pipe." Bids must be received no later than 4:00pm Thursday, May , 01

h 20, 8. Any bids received after this time will remain unopened and become property of the Florida Keys Aqueduct Authority.

Bids should be sent via FedEx, UPS or Courier and addressed to:

FKAA Purchasing Department 7000 Front St. (Stock Island) Key West, FL 33040

***Be advised that the United States Postal Service does not deliver to this address.***

Bid Form

Please note that the quantities listed are not guaranteed and that the FK.AA reserves the tight to increase or decrease the order as needed. Bid will be awarded based on the lowest "Total Extended Price."

Pipe Size and Estimated Quantity

IO inch (80')

I 2 inch (8000')

16 inch ( 1600')

Total Extended Price:

Unit Cost

The Governing Board of Directors of the Florida Keys Aqueduct Authority reserves the right to reject any and all bids, in whole or in part, to waive any irregularities or infonnalities in any bid, and to award to any party considered to be in the best interest of the Authority.

SECRETARIAL CERTIFICATE OF

AUTHORIZATION

The undersigned Assistant Secretary of Feq;,ruson Enterprises, Inc., a Virginia corporation

(the "Corporation,,), hereby certifies that: i) certain of the Corporation 's facilities in Florida are

doing business as Ferguson Waterworks, and ii) Drew Petanick is Municipal Salesman in

Florida, and iii) that the resolutions adopted by the Corporation's Board of Directors effective

July 31, 2014, duly autholize certain of the Corporation's officers, including the Assistant

Secretary, to designate, and I hereby do so designate Drew Pctonick as an authorized

representative of the Corporation to act for and on behalf of the Corporation to prepare and

submit bids and proposals to the Corporation's customers, to enter into contracts, agreements or

other documents, and to execute such documents and undertake all such acts as may be deemed

in the best interest of the Corporation, including the execution of bonds and in doing so, to

contractually bind the Corporation. Unless withdrawn sooner, this certification of authorization

shall be effective until July 31, 2018.

D d J 14 2017 ,,1 11 11 //1 1 ate : une , ,,,,, ~ r.NTf,911.,., ' ...._C) .. ...... '°~ .,., ' .... ~ ... co ... ·r. ,,, ~ ~ .··'Q)ni-0~··. ~ ~

I;/P,/_\~~ :: \ !:;;= , I : fl&,, ~

-;:. ••• /' ,C"')::: ,,. •, .si~ ,, ..... ~ t,.,'',.'-AL ,... ~

Commonwealth ofV1~~;·~j·; ,,,,, ' 'lf1)'11\\\\

FERGUSON ENTERPRISES, INC. /

.... , ··;-· . //./ // . >·~ / . I . , . /_~~~~l(/·1 By· <. ____ /f· -· .-- - .'A &if~4-

• l:, ~ ;s • " • 7 ;• .A

David N: Meeket, Assistant Secretary

City of Newport News )

My commission expires: August 31, 2020


AGENDA ITEM: DUO- OS" CONSENT: D REGULAR: ~


AGENDA TITLE: Consideration to approve the award of IFB-0008-18 to True Haul, LLC for the purchase of DOT Crushed Rock and Pearock #89 in the amount not to exceed $266,000, and Charley Toppino & Sons for the purchase of Flowable Fill in the amount not to exceed $187,000 for water construction activities related to the College Road, Stock Island - Project# 2328-17.

ITEM BACKGROUND: The FKAA Construction Crew will be installing the water system on College Road, Stock Island. FKAA advertised IFB-0008-18, Purchase Rock and Fill in the newspaper, website, and Demand Star. Four (4) bids were received. The lowest, responsible, responsive, and qualified bidder was True Haul, LLC for a total cost of $121,083.20 and $144,704.00 for DOT Crushed Rock and Pea Rock, respectively. Charley Toppino & Sons was the lowest, responsible, responsive, and qualified bidder for the Flowable Fill FF500 psi mix at a total cost of $186,756.00. Results are summarized below.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: Board approved Capital Improvement Plan - Distribution as part of 2018 Budget.

STAFF RECOMMENDATION (MOTION): Staff recommends that the Board of Directors approve the award of IFB-0008-18 to True Haul, LLC for the purchase of DOT Crushed Rock and Pearock #89 in the amount not to exceed $266,000, and Charley Toppino & Sons for the purchase of Flowable Fill in the amount not to exceed $187,000 for water construction activities related to the College Road, Stock Island - Project# 2328-17.

SUPPLEMENTAL INFORMATION: See attached. It is estimated that 4,256 tons of DOT Crushed Rock, 4,256 ton of Pearock #89 and 1, 182 yards of Flowable Fill will be utilized to complete construction for a total cost of rock

not to exceed $453,000.

DOCUMENTATION: Included: [KJ Cost to FKAA: $ 452,543.20 -----'---Cost to Others: $ Total Cost: $ 452,543.20 -------'---



BOARD ACTION:


Not Required:

Yes [KJ D

No CJ

EPARTMENT DIRECTOR APPROVAL: L Executive Director: ,~


Comments: _______________________________ _ _ _

Date: ___________ _ Recording Clerk: _____________ _


..

/

p

1100 Kennedy Drive Key West, Florida 33040 d Telephone (305) 296-2454 ~

www.fkaa.com ~\\ '\ ~ Q

~~\sDL}i~~-·· ~v

MEMORANDUM

TO: Jolynn Reynolds, Manager of Engineering

FROM: Krystal Waldner, Purchasing Office Administrator

DATE: Mayl0,2018

SUBJECT: FKAA-IFB-0008-18, Purchase of Rock and Fill for Project 2328-17, College Rd Stock Island

J. Robert Dean Chairman District3

Antoinette M. Appell Vice-Chairman District4

David C. Ritz Secretary/Treasurer District 5


Richard J.Toppino District2


Subject bid opening was conducted on May 10, 2018. Th is bid was advertised once in one newspaper, as well as being published on the Authority' s website, and Demand Star. Four bids were received, which are as follows:

Vendor SDI True Haul LLC Charley Toppi no & Sons Green Dream International

Total Price $32.50/34.50/NO BID $28.45/34.00/170.00 NO BID/NO BID/$158.00 $3 7 .08/$42. 75/$166.35

It is recommended that we award the bid to True Haul LLC and Charley Toppino & Sons as the lowest qualified bidders for the products. Please see the attached bid for your review. Please ensure that a purchase order is generated upon acceptance of the recommendation.

ACCEPTED: X UNACCEPTED: Reason for Not --------- ---------Digitally signed by [email protected]

j O reyn O Id s@fka a .c Om ON: [email protected] Accepting Bid: ________________ o_at_e:_2_0,_s_.o_s.1_0_1_6:s_9_:3_4_-o_4'o_o_· _ ____ _

General Counsel' s Signature (If Bid Not Accepted):


AGENDA ITEM: DUO- Q{p CONSENT: D REGULAR: ~


AGENDA TITLE: Consideration to award the Trumbo Point Tank and Pump Station Replacement, Project #8034-17, to Charley Toppino and Sons in the amount of$ 2,186,500.00.

ITEM BACKGROUND: This project generally consists of replacing a degraded underground potable water storage tank and pump station, located at the Trumbo Point Annex, with an aboveground glass-fused-to-steel tank and EFI pump station. Two (2) bids for this project were received on May 10, 2018. The lowest, responsive, qualified bidder is Charley Toppino and Sons in the amount of$ 2,186,500.00. This amount is lower than the Engineer's Estimate of $2,250,000.00 and is funded through Repair and Replacement contract with Navy.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: Board approved Capital Improvement Plan - Navy as part of 2018 Budget. Board approval of engineering services agreement with Carollo Engineers Inc. , in the amount not-to-exceed $136,677, on November 15, 2017.

STAFF RECOMMENDATION (MOTION): Approval by the Board of Directors to award the Trumbo Point Tank and Pump Station Replacement, Project #8034-17, to Charley Toppino and Sons in the amount of $2,186,500.00.

SUPPLEMENTAL INFORMATION: See attached contract, including scope of services.

DOCUMENTATION: Included: 0 To-Follow: D Not Required: D Cost to FKAA: $ 2,186,500.00 BUDGETED: Yes D No c=J Cost to Others: $ Total Cost: $ 2,186,500.00

DEPARTMENT: Engineering DEPARTMENT DIRECTOR APPROVAL:

DIVISION DIRECTOR APPROVAL:

Reviewed by: Internal Auditor: --+--- General Counsel: Q,Jf Executive Director:~

BOARD ACTION:


Comments: ----------------------------------Date: _ _ _________ _ Recording Clerk: _____________ _

FLORIDA KEYS AQUEDUCT AUTHORITY BID OPENING

DEMOLITION-REPLACEMENT OF 500,000 GALLON CISTERN TANK ON TRUMBO POINT ANNEX

FKAA PROJECT# 8034-17

DATE: 5/10/2018

TIME: 2:00pm

BIDDERS BID SEAL BID BOND ADDEN BID SIGNED TOTAL BID

DNHI ,/ J J J $ 1- , '3 Lf ~ , Ooo , o o W£t

.(;;ar=ello E1 ,gine~

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Charley Toppi no & Sons / ./ ./' J $ z. I \ <? (p Is 00 , 00

ENGINEER'~MATE /'l

.)_[)_ i--i, y; ~ oS\·W.l'•, ?e.. CL-e.... ())J~ .T/iWa '

P& ct Manager oal, ,udil?;rl,f I tit'J ~8~ A~ '/ Administrative and Contracts Supec:vism Purchasing ind In

I ntory Control M r. g


AGENDA ITEM: DUO- 07 CONSENT: D REGULAR: $J MEETING DATE: May 23, 2018 DIVISION: UTILITY OPERATIONS

AGENDA TITLE: Consideration to approve services from Jones Edmunds & Associates to digitize as-builts and perform Cogsdale GIS integration in the amount of $122,200.00.

ITEM BACKGROUND: Funds have been identified in the 2018 budget to bring our current as-builts up to date within our GIS system as part of the implementation efforts for Cityworks CMMS. In addition, Jones Edmunds & Associates will integrate the current meter layer with the current Cogsdale customer database.

PREVIOUS RELEVANT ACTION BY FKAA BOARD OF DIRECTORS: Jan. 25, 201 7 Board of Directors approved the proposed scope of work from Jones Edmunds & Associates for phase one of the installation and implementation of Cityworks Computerized Maintenance Management System in the amount of $198,500.00

STAFF RECOMMENDATION (MOTION): Board of Directors approve services from Jones Edmunds & Associates to digitize as-builts and perform Cogsdale GIS integration in the amount of $122,200.00.


DOCUMENTATION: Included: [KJ Cost to FKAA: Cost to Others: Total Cost:

$ 122,200.00 --~---$ -----$ _ _ 12_2-'-,2_0_0._00_


Not Required:

Yes [X] D

No CJ

DEPARTMENT: - -.>LJ=.=-"--L..- -------,ft1.-- DEPARTMENT DIRECTOR APPROVAL: ~

Reviewed by: Internal Auditor: ----1-- General Counsel: ~ f Execulive Director:9=,-

BOARD ACTION:

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

Comments: ___________________ _____________ _ _

Date: _ __________ _ Recording Clerk: ____________ _ _

SCOPE OF SERVICES JonesEdmund~ Digitize As-Builts and Cogsdale/GIS Integration

BACKGROUND

Jones Edmunds is pleased to present this Scope of Services for consideration by the Florida Keys Aqueduct Authority (FKAA) . Jones Edmunds is helping FKAA move their GIS to an enterprise platform and this scope details the steps needed to build out their GIS and work through a backlog of hard copy asset information. Jones Edmunds will also develop a process to update service locations in GIS with customer information from Cogsdale.

1 DIGITIZE AS-BUIL TS

Jones Edmunds will request a copy of the City's Cityworks and GIS databases. Jones Edmunds wi ll remotely perform a brief review of these data to prepare for the Cityworks PLL implementation.

The FKAA Design Group uses two tracking spreadsheets to track submitted projects. The spreadsheet to track contractor-submitted designs includes design projects and permit submittals ca lled Submitta l Tracking. The submitta ls from 2009 to the present have not been digitized into GIS. This includes the 24 projects listed in Appendix 1 totaling approximately 309 CAD sheets (Submitta l_Tracking.xls - 2/1/2018). In-house design projects are tracked in a separate spreadsheet called Drawing List. Projects dating from 2001, with the majority being from 2010 to the present, that were also not digitized into GIS. This includes the 44 projects listed in Appendix 2 totaling approximate ly 382 CAD sheets (Drawing No. List.xis - 2/1/2018) .

Overall, FKAA has 68 projects totaling over 691 CAD sheets that need to be digitized into the GIS database. The majority of these are digital pdf files that will need to be georeferenced before digitizing.

Jones Edmunds will rectify and digitize these 691 CAD sheets to migrate the asset information into FKAA's GIS.

FKAA Responsibility - Review GIS deliverables in a timely manner.

Deliverables - Jones Edmunds will digitize the pertinent asset information from the 691 CAD sheets into FKAA's new enterprise GIS database. Jones Edmunds will work with FKAA to determine an appropriate deliverable schedule.

2 COGSDALE / GIS INTEGRATION

Jones Edmunds will develop a process to update FKAA's Service Connection/Meter Layer with the current customer billing information from the Cogsdale customer database. We are

May 2018 1

Digit ize As-bui lts and Cogsdale / GIS Integration

proposing the following process, which we have performed for other Cogsdale clients. We will host a teleconference to discuss and finalize this process with FKAA before beginning.

• Existing records wi ll be updated with the customer information and the spatial information will be maintained.

• New accounts wi ll be geocoded to the center of the parcel .

• Any accounts that cannot be automatically geocoded will be assigned an XY location in the middle of the ocean for their address to be updated and manually geocoded or to manually place the point in the correct location.

Jones Edmunds will spend up to 50 hours on this task. If additional time is needed, Jones Edmunds will work with FKAA to prioritize this work under Task 3.

FKAA Responsibility - Pertinent FKAA staff will attend and participate in the process discussion.

Deliverables - Jones Edmunds will provide FKAA with documentation working process to update service locations and customer information from Cogsdale.

3 AS NEEDED ENTERPRISE SUPPORT

Jones Edmunds wi ll remotely provide ongoing support to FKAA. This task will cover add itional items requested by FKAA as the project progresses. Jones Edmunds wi ll provide up to 70 hours of as- needed support to FKAA, including up to one on-site visit.

ASSUMPTIONS

• FKAA will purchase all hardware and software to support the work for this project. FKAA will make the hardware and software (Cityworks Server, ArcGIS Server, SQL Server) for the project available to Jones Edmunds. Software and hardware costs are not included in this Scope of Services.

• FKAA will provide remote access to Jones Edmunds to complete the work outlined in this Scope of Work. The majority of the work on this project will be completed through remote access.

LUMP-SUM-FEE BREAKDOWN

Task 1: Digitize As-builts Task 2: Cogsdale/GIS Integration Task 3: As Needed Enterprise Support

Total

$98,000 $11,000 $13,200

$122,200

The Total Fee amount will be available under this Scope of Services. The billing for this project will be monthly on a lump-sum percent-complete basis by task and will not exceed the total fee listed.

May 201 8 2

Digitize As-builts and Cogsdale / GI S Integration

Appendix 1 Submittal Tracking Projects to Convert to GIS

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

Project Name

FIRE HYDRANT: K.L. Shopping Center, Tarpon Basin Drive 101350 Overseas (Gulf-side) MM 101.4 Re# 00086770000000

RECLAIMED WATER: Hawk's Cay Marina Utility Easement - NOT RECORDED

SEWER & RECLAIMED: U.S.1 to Rockland WWTP As-Builts

PLANS: Proposed P678 Aircraft Crash Rescue & Fire Headquarters Navy

WATER MAIN EXTENSION: Rock Harbor Club, 97652 Overseas, Key Largo

FIRELINE: 100760 Overseas Highway - Hibiscus Drive Commercial Building - David Thompson Re# 00523760-000000

FIRE HYDRANTS: Ocean Reef Marine Village - Ocean Reef Club Various Locations, #8 and #14 Marina Drive, Key Largo

WATER MAIN EXTENSION: JOBE Hangar - Marathon Airport 10094 Overseas (approximately 220 feet+/- northeast of 101st Street Ocean) Re# 00100881-000000

WATER MAIN EXTENSION: 15 Lakeview Drive, Lots 18, 19, and 20 Re# 00529150-000000, 00529160-000000, 00529170-000000

FIRE LINE/HYDRANT: Whale Harbor Restaurant Key 83413 Overseas Highway Re# 00403980-000100

MISC HYDRANTS AND VALVES 11-2-15

WATERMAIN EXTENSION: Stock Island Marina Village 7009 Shrimp Road

WATER MAIN EXTENSION: Truman Waterfront Park 35 East Quay Road

WATER MAIN RELOCATE: US# 1 (As-Builts - Field Notes) Along US Highway 1 - MM 31 (County Road to Industrial Road)

FIRE LINE-HYDRANT RELOCATION: Postcard Inn 84201 Overseas High Re# 00093650-000000

RECLAIMED: Duck Key Reclaimed Water Storage and Pumping Facility - Record

PLANS: City of Layton WWTP (Record) 67900 Overseas MM 67.9

PLANS: Duck Key WWTP Improvements (Bid Docs) Greenbriar Road Re# 00378380-000100

RECLAIMED WATER: Big Coppitt Key - Preliminary US# 1

May 2018 3

Digit ize As-builts and Cogsdale / GIS Integration

Project Name

20 PLANS: Big Coppitt Wastewater Col lection System Phasing Map Phase 1

21 AERIALS: Lower Keys Collection (Non-Central) Pre-Design

22 SURVEY: Lower Keys Collection (Non-Central) Pre-Design

PLANS : Kermit H. Lewin SIRO Improvements (Record) 23 7200 Front Street

Re# 00123610-000000

24 PLANS : K. W. Solid Waste Transfer Station 8-Inch Waterl ine (Record)

4 May 2018 Digit ize As-bu ilts and Cogsdale / GI S Integration

Appendix 2 Drawing List Projects to Convert to GIS

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

Project Name

Vacation Harbor, Sugarloaf Water Main Upgrade/Hydrants

Florida Keys Electric Cooperative (FKEC) Water Main Extension & Hydrants 91630 Overseas Highway Re# 00556440-000000

Tavernier, Bayridge and Snake Creek Water Distribution Upgrade

Summerland Key, USl

Summerland Cove Isle, Summerland Key

Second Avenue, Stock Island Water Main Upgrade

Russel and Knowles Street Water Main Upgrade

Tap #235, Feed Line, US1, Knights Key

Caymen Drive, Lower Sugarloaf Key - Water Main Extension

United and White Street Intersection Water Main Upgrade

Villa Mill Alley, Key West - Water Main Upgrade

United Street White to Whitehead

Patterson Avenue, 10th Street and 12th Street, Distribution System Upgrade, Key West

North Roosevelt Boulevard Phase 1 - Eisenhower to 4th Street

Sigsbee Road - Water Main Extension

Flagler White to Reynolds Water Main Upgrade

Flagler and White Street Intersection Water Main Upgrade

Flagler Water Main Replacement First to White Street

Elizabeth Street, Key West - Water Main Upgrade

Duncombe Street, Key West - Water Main Upgrade

D-S-U Key West - Sigsbee - Phase 3 (Farragut, Truxton, Dewey)

Truman Annex Phase 1 - Distribution Water Main Upgrade

6-Inch Water Main Replacement - Gilmore Circle - Sigsbee

Water main Upgrade - 14th Street (Northside Drive to North Roosevelt)

Key West - 14th Street - Distribution System Upgrade (aka Glynn Archer Drive)

D-S-U Sexton Cove Estates, Key Largo

Rock Harbor Pump Station Re-piping

Ocean Bay Drive Distribution System Upgrade

Chad's Deli - Water Main Relocate

Venture Out Water Main Upgrade, Cudjoe

South Street, Big Pine Key Water Main Upgrade

Eden Pines Colony Distribution Upgrade, Big Pine Key Viscaya As-Builts; also Field Notes

Water Main Extension - Beach Road, Big Pine Key - MM 31.6

14th Street and 21st Street, Big Pine Key Water Main Upgrade

Sewer Force Main Extension - North Layton Drive, City of Layton

Duck Key Wastewater / Hawk's Cay Easement, Phase 7

May 2018 5

Digit ize As -builts and Cogsdale / GI S Integration

Project Name

37 Duck Key Wastewater / Hawk's Cay Easement, Phases 4, 5, and 6

38 Duck Key Wastewater/ Hawk's Cay Easement, Phase 3

39 Duck Key Wastewater / Hawk's Cay Easement, Phases 1 and 2

40 Conch Key Distribution: Water and Wastewater System Improvements Phase 1

41 Baypoint Sewer Survey Data FKAA Bay Point Drawing

42 Shark Key Site Plan

43 Rockland Bridge Reclaimed Water Main

44 Water Main Upgrade and Reclaimed Water Rockland Key

6 May 2018 Digit ize As-builts and Cogsdale / GIS I ntegration


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

MEETING DATE: May 23, 2018 DIVISION: BOARD OF DIRECTORS

AGENDA TITLE: Board of Directors Discussion

ITEM BACKGROUND: The Board of Directors can bring up any subject they deem necessary to be discussed at this time.

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

STAFF RECOMMENDATION (MOTION): N/A

SUPPLEMENTAL INFORMATION: N/A

DOCUMENTATION: Included: D Cost to FKAA: $ Cost to Others: $ Total Cost: $

DEPARTMENT: Board of Directors


Not Required:

Yes D


D No D

DIVISION DIRECTOR APPROVAL: _ _ __________________ _

Reviewed by: Internal Auditor: ___ _ f)"T1:-

General Counsel: ~ Executive Directo~

BOARD ACTION:

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

Comments: ______________________________ _

Date: ___________ _ Recording Clerk: ____________ _