TO: Lake County Water Authority Board of Trustees FROM: Michael J. Perry, Executive Director DATE: May 13, 2016 SUBJECT: Request from Kid’s Central for In-County Rental Rate ______________________________________________________________________________ Consent Item Request from Kid’s Central for In-County Rental Rate Staff has received a request from Kids Central for a Staff Appreciation and Family Fun Day at Hickory Point. Kids Central has rented the Hickory Point pavilion before. Their office is located in Ocala and therefore they do not qualify for in county rental fees. The out of county rental fee is $295; the in county rental fee is $220. For their previous June 2013, event they requested either free or reduced rates and the Board approved that they be charged the reduced in-county rates. In February 2015, the Board authorized staff to charge Kids Central the in-county rate of $220 for their April 25, 2015, Family Fun Picnic Event. Kids Central is requesting to again rent the pavilion at Hickory Point for their all day event

• Pavilion Rental Saturday, September 24, 2016, 9:00 am - 8:00 pm. • Attendance is expected to be 160 adults plus 100 children. • This is an appreciation day event for their employees and families. Kids Central is a not-

for-profit lead agency selected by the State of Florida to coordinate child protection services in Citrus, Hernando, Lake, Marion and Sumter Counties (Circuit 5).

• Activities for the families include a bounce house, carnival games, and a slide. They are again requesting that the Board allow the reduced in-county rental rate. Executive Director’s Recommendation: Authorize staff to charge Kids Central the in-county rate of $220 for their September 24, 2016 Family Fun Day Picnic Event.

TO: Lake County Water Authority Board of Trustees FROM: Linda Marino, Administrative Assistant DATE: May 13, 2016 SUBJECT: FY 2014-2015 Financial Audit Discussion Item FY 2014-2015 Financial Audit The Water Authority’s annual audit for FY 2014-2015 is enclosed for your review. Patricia Sykes-Amos of Greenlee Kurras Rice Brown Garner & Donofrio will present it to the Board. The management letter states there were no problems found and the auditing firm had no recommendations for improvement. The Government Accounting Standards Board Statement (GASB) # 68 was implemented with this audit. GASB’s new standards state that the unfunded portion of a pension liability meets the definition of a liability, and therefore should be reported on the financial statements of the sponsoring entity. This liability is reported as the net pension liability, and is measured as the total pension liability net of the pension plan’s net assets. GASB 68 changes the way government entities disclose pension information requiring entities participating in cost-sharing, multiple-employer defined pension plans, like the Authority’s participation in the Florida Retirement System, to record their portion of the net pension liability of the plan. Staff would like to thank Mr. Neil Kelly the Water Authority Secretary-Treasurer, Kristy Mullane, Chief Deputy Clerk, and their staff for all their efforts during this past year, and for a successful audit. Executive Director Recommendation: Accept the FY 2014-2015 audit from Greenlee Kurras Rice Brown Garner and Donofrio.

TO: Lake County Water Authority Board of Trustees FROM: Ron Hart, Water Resources Program Director DATE: May 11, 2016 SUBJECT: Palatlakaha Structures Modifications at M-5 and M-6 ______________________________________________________________________________ Discussion Item Palatlakaha Structures Modifications at M-5 and M-6 As part of Palatlakaha restoration, structures M-1 and M-4 were modified from operable twin taintor gates to fixed weirs (Figure 1). During the next phase, staff was authorized to execute a contract with Dredging & Marine Consultants (DMC) for the design and permitting of modifications to dams M-5 and M-6 (Figure 2). The contract was executed and the consultant completed the 60% design and proceeded with permitting. To date, the consultant has completed the 90% design and received the required permits from the Saint Johns River Water Management District (District). The consultant will present the permitted design for the Board’s review at our meeting (Drawings and Specifications are attached). In order to achieve the District’s required weir height and maintain discharge capacity, DMC was forced to utilize long weir lengths. These added lengths are expected to increase cost above the previous M-1 and M-4 project. In addition, construction prices have increased since the last two structures were out to bid. These two factors combined have resulted in an expected increase in cost of approximately $143,000.

Figure 2. M-6’s standard design with twin taintor gates and hoist mechanism.

Figure 1. M-4’s design with a fixed concrete weir.

TO: Lake County Water Authority Board of Trustees FROM: Sergio Duarte, Water Resources Project Manager DATE: May 10, 2016 SUBJECT: Award Bid 2016-03: Purchase of Alum Tank for the Nutrient Reduction Facility ______________________________________________________________________________ Discussion Item Award Bid 2016-03 for Purchase of Alum Storage Tank for the Nutrient Reduction Facility The Board authorized staff to release a bid for the purchase of a 316L stainless steel alum storage tank for the Nutrient Reduction Facility (NuRF) during the February 24, 2016 meeting, and to return with a recommendation to contract the tank construction with the lowest and most responsible bidder. The alum storage tank bid was released on Monday March 21, 2016 with a bid opening on April 21, 2016. The following bids were received and tabulated:

On April 21, 2016 staff received a bid via e-mail from Southern Tank and Manufacturing Co., Inc. that included: $36,625 for the tank with accessories / level indicator, $5,600 for the delivery, and a total of $42,225. The bid from Southern Tank and Manufacturing was not considered because it was not mailed in a “sealed envelope” as requested in the bid package.

At the February 24, 2016 Board meeting, staff discussed the expected life of several tank types, including multiple types of stainless steel, rubber-lined or epoxy-lined carbon steel, fiberglass reinforced plastic, and high density cross-linked polyethylene (see Table No. 1), as well as the cost analysis for each type of tank (Table No. 2): Table No. 1. Chemical Storage Tank Material Summary for a roofed location

Material Expected Life (years) Comments

Type 316L Stainless Steel (316L SS) 40-80

• Highest capital cost • Annual inspection suggested • Rarely used at municipal facilities

Type 304L Stainless Steel (304L SS) 25-30

• Highest capital cost • Annual inspection suggested • Rarely used at municipal facilities

Lined Carbon Steel (LCS) 15-20

• Annual inspection suggested • Not commonly used at municipal

facilities Fiberglass Reinforced Plastic (FRP) 10-15 • Susceptible to UV degradation

• Commonly used at municipal facilities

High-density X Polyethylene (HDXPE) 10-12

• Lowest capital cost • Susceptible to UV degradation • Commonly used at municipal facilities

Table No. 2. Tank Material Cost Comparison

Material Expected Life (years)

Estimated Constructed Cost Life Cycle Cost

316L Stainless Steel (316L SS) 40-80 $34,000 $425-$850/year

304L Stainless Steel (304L SS) 25-30 $34,000 $1133-$1360/year

Lined Carbon Steel (LCS) 15-20 $50,000 $2,500-$3,333/year

Fiberglass Reinforced Plastic (FRP) 10-15 $40,000 $2,600-$4,000/year

High Density X Polyethylene (HDXPE) 10-12 $30,000 $2,500-$3,000/year

Staff also discussed the lifespan of the existing High Density x Polyethylene (HDXPE) tanks at the NuRF with full sun exposure can be decreased from 10 -12 years to 6 -10 years, increasing the life cycle cost to $3,000-$5,000 per tank/year.

The bid submitted by the Dixie Tank Company for the manufacturing and delivery of a 316L SS alum storage tank at a cost of $37,750, has a life cycle cost of approx. $472 - $944 per tank/year. The life cycle cost of a 316L SS tank at $472-$944 per tank/year is five to six time cheaper than the life cycle cost per tank/year for the HDXPE tanks currently in service at the NuRF. The 316L SS tank also comes with the added bonus that it can be repaired (welded) and recycled at the end of its life, in contrast with the HDXPE tanks that cannot be repair and have to be disposed when damaged, making the SS tanks more environmentally friendly. The depreciation of a stainless steel tank at the end of its life will never reach zero because the stainless steel keeps its value as a metal suitable to be recycled. Carl Eric Johnson, Inc. (CEJCO) a distributor of PolyProcessing Company LLC., submitted to the LCWA a one-time quote of $20,517 for a new HDXPE tank ($16,667 tank cost + $3,850 for shipping) to help with the shorter duration and complaints on the quality and tank defects found at the NuRF. The reduced price from CEJCO for a new HDXPE tank with an average 8-year of life expectancy, would only provide a life cycle cost of $2,564 per tank/year that is still five times greater that the life cycle cost per tank/year for a stainless steel tank Based on the reduced life cycle cost of the stainless steel tanks, staff recommendation is to award the tank replacement contract to Dixie Tank Company; and to consider in the near future the replacement of all the HDXPE tanks that fail at NuRF with new 316L SS tanks. Executive Director’s Recommendation: Authorize Executive Director to execute a contract with Dixie Tank Company for an amount not to exceed $37,750 to manufacture & deliver a 316L stainless steel alum storage tank for the NuRF.

TO: Lake County Water Authority Board of Trustees FROM: Michael J. Perry, Executive Director DATE: May 13, 2016 SUBJECT: Status of Proposed Volleyball Fieldhouse at Hickory Point ______________________________________________________________________________ Discussion Item Status of Proposed Volleyball Fieldhouse at Hickory Point When the Water Authority entered into an agreement with the Lake County BCC to allow the creation of a Volleball facility at Hickory Point, the Water Authority Board was expecting a bathroom and perhaps a locker room/changing area to also be built. Water Authority staff attended a March 21, 2016 meeting of the Lake County Tourism Development Council where the issue of a proposed Volleyball Fieldhouse at Hickory Point was discussed. The fieldhouse was conceptually proposed as a 48’ x 83’ 3,984 sq. ft. building including bathrooms, locker rooms, showers, a concession and kitchen area, storage areas, training rooms and 4 meeting rooms. At this meeting County staff was authorized to begin the design phase within a $750,000 price range. Staff briefed the Water Authority Board about this potential fieldhouse during the Executive Director’s report at the Boards’s March 30th meeting. Staff provided a draft floorplan and the proposed location next to the existing volleyball courts. The Board discussed this issue at its April 27, 2016 meeting and expressed several concerns about the size of the proposed building, the need for additional area for stormater, sidewalks and parking areas. Vice-Chairman Dufresne suggested having a separate discussion with Commissioner Cadwell and the appropriate County staff. Chairman Cox, Vice-Chairman Dufresne and Trustees Clark and Maimone met with Commissioner Cadwell and Robert Chandler, the County’s Director of the Economic Growth Department to review the issue. Commissioner Cadwell noted that the County has not made a determination on what the size or floorplan of a proposed fieldhouse and that the draft being reviewed was done to show the type of features that reflected the conversation with the NCAA. The Board expressed concerns about the building floorplan being more than just bathroom and showers/changing rooms; the footprint of the building including the size, location, need for additional driveways and sidewalks and parking or loading areas adjacent to the building; Permitting Issues specifically that the current site plan must be revised, SJRWMD stormwater requirements and that the SJRWMD exemption only allows for a 24’ x 24’ restroom/locker room; the current leased area may not be large enough and a new lease might be required; parking and traffic into and around the park; and is there a benefit to the Water Authority.

The group walked the area near the volleyball courts site and discussed potential locations and to try to visualize the size of the proposed fieldhouse. Commissioner Cadwell stated that he will report to the BCC that we have met to discuss the issue and that the County will be meeting with building cost estimators and designers to prepare a design and location for continued discussion. When available, this information will be provided to the Water Authority Board for continued deliberation and discussion. Executive Director’s Recommendation: For information purposes only. No action required.

TO: Lake County Water Authority Board of Trustees FROM: Ron Hart, Water Resources Program Director DATE: May 12, 2016 SUBJECT: Lake Louisa Bathymetry ______________________________________________________________________________ Discussion Item Lake Louisa Bathymetry Providing information to the public on the way our lakes function is a continuing focus for our agency. The same information is also critical in determining our operation of structures that control water levels. The completion of the bathymetry on the southern end of the Clermont Chain provided additional critical information that helps further explain the reasons why these lakes have such a wide water level fluctuation range. In the areas south of the Clermont Chain, the United States Geological Survey (USGS) studies of the Green Swamp have shown that there is a direct connection of the surficial aquifer to the Floridan aquifer. In essence, the pressure of the Floridan is within 1 foot of the level of the surface aquifer. As water levels at the surface drop, there is almost an exact drop in the Floridan. This information has been determined by USGS from pinpoint well data that is sporadic with measurements few and far between. This data also indicates that the Hawthorn layer, a clay layer between the Floridan and surficial aquifer, is highly compromised with areas where this layer is completely absent or is mixed with sand. This condition allows the water to move freely between the two zones equilibrating pressures. USGS monitors the pressure of many Floridan aquifer wells. The combined measurements are interpolated to produce a potentiometric map (Figure 1). This map shows the high pressure area south of Lake County in north Polk County. From this

Figure 1. Potentiometric Map of South Lake County and the Green Swamp.

Louisa

high point, Floridan groundwater travels out in all directions with most of the water traveling across the steep slope to the east. As the water moves down the gradient, pressure is lost. By the time water reaches Lake Louisa, the Floridan pressure is usually between 85 to 94 feet. This means that if Lake Louisa surface water elevations are at 97 feet, there is a head pressure between 3 to 12 feet driving water down into the aquifer. As you continue to move further to the north the pressure of the Floridan continues to drop resulting in pressure differences as great as 20 feet. These large differences between the Floridan and Surficial aquifer pressures would cause major water losses in these lakes if the Hawthorn layer is missing or compromised with a mixture of sand. Because almost all the information known about the Hawthorne layer and the Floridan aquifer is based on the logs from deep drilled wells in uplands, little information is available describing the underlying geology beneath our wetlands and lakes. The best information available was from older bathymetric contour maps. These maps were generated by measuring lake bottom depths at many transects with areas between interpolated as an even gradient to the next transect. Staff has attached the old bathymetric map for Lake Louisa for comparison to the new (Figure 2)

Figure 2. Previously used Bathymetric Map for Lake Louisa.

Recently, staff has completed detailed bathymetric maps for the southern end of the Clermont Chain. The lakes mapped to date are lakes Louisa, Susan, Willamee, Hattie, Crescent, and Winona. Lake Louisa, the largest and southernmost lake on the chain, showed some remarkable underwater geology (Figure 3).

Figure 3. New Detailed Bathymetric Map for Lake Louisa.

The new detailed bathymetric map for Lake Louisa shows the bottom of the lake riddled with subsidence features. These underwater sinkholes indicate that the underlying Hawthorne formation maybe absent, mixed with sand, or have many sand pockets. Because this layer is absent or compromised with sand, surficial aquifer water readily enters the Floridan aquifer. Water flowing into Lake Louisa, via Big and Little Creeks, is highly acidic. This causes the water within the lake to regularly measure a pH of approximately 4. Because the lake is elevated above the Floridan aquifer pressure and is riddled with holes in its bottom, the acidic water drains down into the Florida and dissolves the underlining limestone. This continuing process continues to create new sinkholes or deepen the existing collapse features over a long period of time. To determine if any of the collapse features were just created, staff took the new bathymetric layer and overlaid it on the 2002 drought aerial photography (Figure 4).

Figure 4. The new Bathymetry overlaid on the Drought 2002 Aerial Photography.

Staff closely examined the shoreline areas as shown in Figure 5. The image shows that the newest sinkhole nearest to the shoreline were all present prior to 2002. None could clearly be identified as created after 2002. However staff is able to somewhat estimate their relative age by the amount of erosion to their side slopes. Those with steep side slopes should have been exposed to less erosion and be newer and those with rounded shallow slopes exposed to more erosion and would be much older. As it turns out, the sinkholes with the steepest slopes are located nearest the shoreline of the lake. These collapse features have almost perfect vertical walls. The combined knowledge of the lakes being elevated well above the Floridan aquifer along with the active drains in the bottom of Lake Louisa help to further explain some of the reasons why the water levels within the Clermont Chain drop during dry periods up to 3/8 of an inch per day. This loss across the chain is a remarkable 285 million gallons daily. These losses also reinforce the need to store as much water in the system as possible, when available, in order to maximize the time levels are within our regulatory range and hydrating wetlands. Executive Director Recommendation: For information purposes only. No action required.

Figure 5. 2002 Aerial Photography with the new Bathymetry overlaid and newer Sinkholes Identified.

New Sinkholes

TO: Lake County Water Authority Board of Trustees FROM: Michael J. Perry, Executive Director DATE: May 13, 2016 SUBJECT: Listing and Marketing of Old Office Building ______________________________________________________________________________ Discussion Item Listing and Marketing of Old Office Building Now that the new office has been completed and staff has moved into the new building, the Board has begun the disposition of the old building. At its December 16, 2015 meeting the Board authorized Mr. Walter Price to do the appraisal of the old office building. At the January 2016 regular Board meeting, staff provided the appraisal to the Board. At the Board’s February 2016 meeting, the Board took action to release a Request for Bid for the old building and established a minimum amount for the Bid. Staff adapted an example of a Request for Bid that was prepared by the City of Tallahassee. The Board reviewed the bid document at its March meeting and authorized staff to release the bid with a minimum bid and a due date for the bids of April 22, 2016. One bid was received and presented to the Board at its April 27, 2016 meeting. The bid was essentially a land swap and a small amout of cash. The Board rejected the bid and discussed options for listing and marketing the building. It was agreed that the building needed to be on the MLS to gain maximum sexposure and that would require that it be listed. A few agents and brokers have expressed an interest in listing the old building. Trustee Maimone offered to explore the topic with her broker and will report back the the Board. Executive Director’s Recommendation: Provide direction to staff regarding listing and marketing the old office building.

TO: Lake County Water Authority Board of Trustees FROM: Michael J. Perry, Executive Director DATE: May 12, 2016 SUBJECT: Status of Bourlay House ______________________________________________________________________________ Discussion Item Status of Bourlay House The Bourlay Historic Nature Park home was recently vacated. Staff has visited the house on several occasions since it has been vacated to make sure it is not being vandalized in any way In December, staff contacted a handyman/repair service to determine the repairs required, obtain an estimate for the repairs and prioritize the repairs based on safety, desired upgrades and aestheics in that order. Staff reported to the Board in December that the repaires were beyond the capability of a handyman and would require an electrician and plumber first. The Board directed staff to do the following:

• Immediately turn off the water to the house • Contact an electrician and plumber to inspect the house; and • Contact the City of Leesburg about the feasibility and cost of connecting to City water

and wastewater services. All electrical and plumbing issues known to date have been resolved. The hole in the ceiling due to the previous leak has been repaired. The downstairs bathroom shower has been re-tiled and is now useable. The staircase has been restored and the downstairs painting is complete. Work is still ongoing in the kitchen. The fllors have been refinished and the remaining tasks are to install the new cabinets and countertops and backsplash. Trustee Dufresne was successful in contacting the City of Leesburg to discuss the potential for connecting to City water service. The service is available, however a 2” water line would have to be run from the restroom area to the house. An alternative would be to install a water treatment system that includes removing iron. Staff will brief the board on the status of the project at the Board meeting, however the process for selecting a site resident could begin if the Board desires. Executive Director’s Recommendation: For information purposes only. No action required.