PEACE RIVER MANASOTA REGIONAL WATER SUPPLY AUTHORITY BOARD OF DIRECTORS MEETING SUMMARY AGENDA February 2, 2018 @ 9:30a.m. Peace River Facility Water Quality and Training Facility 8998 SW County Rd. 769, Arcadia, Florida ALL MEETINGS ARE OPEN TO THE PUBLIC Commissioner Alan Maio, Sarasota County, Chairman Commissioner Elton Langford, DeSoto County, Vice Chairman Commissioner Ken Doherty, Charlotte County Commissioner Priscilla Trace, Manatee County CALL TO ORDER INVOCATION Commissioner Elton Langford PLEDGE OF ALLEGIANCE Led by the Board WELCOME GUESTS PUBLIC COMMENTS Open to the Public - Three (3) minute time limit per person. Anyone wishing to address the Board on any agenda item or non-agenda issue should complete a request to speak card and hand it to the recording clerk. ELECTION OF OFFICERS RESOLUTIONS/PRESENTATIONS 1. Employee Service Recognition - Gary Molnar Retirement Gary Molnar came to work at the Peace River Facility in 1991 shortly after the acquisition by the Authority. Gary holds a B Water Treatment plant Operator s license and currently is in the position of Operations Specialists at the Peace River Facility. The Authority wishes to recognize Gary for his 26 years of dedicated service to the agency upon his retirement this March. 2. 2017 Drinking Water Plant Operations Excellence Award presented by Florida DEP Each year the Florida Department of Environmental Protection (DEP) presents awards to drinking water facilities around the state that demonstrate excellence in operation, maintenance, innovative treatment or other special achievements. These awards are presented to recognize facilities that demonstrate a special commitment to excellence in management through dedicated professionalism. Awards are presented to one facility in each of the DEP s six districts. This year, the DEP has selected the Peace River Facility to receive their 2017 Drinking Water Plant Operations Excellence Award in recognition of outstanding treatment plant operation, maintenance and compliance.
CONSENT AGENDA 1. Minutes of December 6, 2017 Board of Directors Meeting Motion to approve minutes of December 6, 2017 Board of Directors meeting. Draft minutes of the December 6, 2017 Board of Directors meeting are provided for Board approval. 2. Year-End Financial Status and Semi-Annual Investment Reports for FY 2017 Motion to receive and file Year-End Financial Status Report for FY 2017. a. Receive and File Year-End Financial Status Report for FY 2017 Motion to receive and file Semi-Annual Investment Report [September 30, 2017]. Year-end Financial Status Report for FY 2017 is provided for the Board to receive and file. b. Receive and File Semi-Annual Investment Report [September 30, 2017] Semi-Annual Investment Report [September 30, 2017] is provided for the Board to receive and file. 3. Transfer Funds from General Fund to Utility Reserve Fund in the amount of $1,000,000 Motion to approve the transfer of $1,000,000 from the General Fund to the Utility Reserve Fund. Per the Authority s Budget Policies [February 6, 2013], the Authority is to maintain an uncommitted Utility Reserve Fund with a minimum balance equivalent to 180 days of the total operations and maintenance expenditures as reflected in the annual budget. The Approved FY18 Budget included total operation and maintenance expenses of $18,409,900, of which 180 days worth of the total expenditures is $9,204,950. As of December 31, 2017, the Utility Reserve Fund totaled $8,331,010. Adequate funds currently exist in the General Fund (Operations) to transfer the additional required funds to the Utility Reserve Fund. 4. Property Insurance Renewal for Authority Facilities Motion to renew Peace River Facility Property Insurance with Starr Tech/ACE for an annual premium of $232,559 for the upcoming year (March 1, 2018 thru March 1, 2019). The Authority s property insurance expires on March 1, 2018. Bids were received from firms for property insurance for the upcoming year. The Authority s independent insurance consultant, Brown & Brown - Public Risk Insurance Agency, reviewed the quotes and recommends renewal with the Starr Tech/ACE. The annual premium for the upcoming year (March 1, 2018 thru March 1, 2018) is $232,559 which is a 9.78% increase from last year s premium of $211,833. The increase of 9.78% over the previous year premium is reportedly due to a shift in the market price for insurance following significant property losses associated with the 2017 hurricane season. 2 P age
Funds are available in the FY 2018 budget for property insurance. Staff recommends approval of property insurance renewal with Starr Tech/ACE for an annual premium of $232,559. 5. Resolution 2018-01 Resolution Establishing Per Diem and Travel Expenses Motion to approve Resolution 2018-01 Resolution Establishing Per Diem & Travel Expenses The Authority s existing Resolution Establishing Per Diem and Travel Expenses (Resolution 2005-09) was adopted in 2005. A replacement of that resolution is proposed that would conform with per diem and travel expense rates for federal employees, as published by the U.S. Government Services Administration (GSA) and the Internal Revenue Service (IRS), which update per diem and mileage rates annually. Meal allowance rates as published by the GSA are based on the location of the work activity. Charlotte, Manatee and Sarasota Counties have adopted similar per diem policy based on the GSA. 6. Peace River Manasota Regional Water Supply Authority Statement of Organization and Operation Motion to repeal and replace the Authority s Statement of Organization and Operation (Board approved: September 1, 2010 document) with the Peace River Manasota Regional Water Supply Authority Statement of Organization and Operation February 2, 2018 document. Agencies are required to adopt a written statement of organization pursuant to section 120.53(4), Florida Statutes. The Authority Board last adopted the Authority s Statement of Organization and Operation on September 1, 2010. The document has been updated to reflect current elements of the agency including the name of the Agency Clerk. General Counsel recommends the Board repeal and replace the existing document with the updated Statement of Organization and Operation in accordance with state statutes. 7. Regional Integrated Loop System Phase 1 Interconnect [U.S. 17 to Punta Gorda] Purchase and Sale Agreement for Permanent and Temporary Easements with B. Smith Motion to approve and authorize execution of the purchase and sale agreement and associated easement agreements for permanent non-exclusive waterline and temporary construction located on parcels 402420300005 and 402320300006 in Charlotte County required for the Regional Integrated Loop System Phase 1 Interconnect at a purchase price of $35,420 plus payment of up to $4,000 for closing costs. Negotiations have resulted in a Purchase and Sale Agreement for a 0.682-acre permanent non-exclusive waterline easement and 2.47-acre temporary construction easement located on Parcels IDs 402420300005 and 402320300006 in Charlotte County. The easements are required for construction of the Phase 1 Interconnect project. The easements are located on the south side of Shell Creek, west of the Hendrickson dam on Shell Creek, in Section 20, Township 40 South, Range 24 East, in Charlotte County. Negotiated purchase price was $35,420 plus up to $4,000 in closing costs and is supported by Brokers estimate. Budget Action: None; funds available in Project budget. 3 P age
8. Cooperative Funding Agreement 18CF0000854 for Partially Treated Water Aquifer Storage and Recovery Project at the Peace River Facility Motion: To approve and authorize the Executive Director to execute Cooperative Funding Agreement 18CF0000854 for the Partially Treated Water ASR Project at the Peace River Facility. The Partially Treated Aquifer Storage and Recovery Project is in the Authority s 5-year CIP and has been ongoing since FY 2016. The project began as a desk-top study and has now progressed through a yearlong pilot testing stage (testing completed in early January 2018). Data from the pilot test are under evaluation now. This project will, if feasible, provide for storage of partially treated water (filtered) from the reservoir system, rather than fully treated drinking water for storage in the ASR system yielding significant operational cost savings and improving the overall effectiveness of the ASR system at the Peace River Facility. SWFWMD has approved the Authority s request for co-funding of the project beginning in FY 2018. The attached agreement (18CF0000854) from SWFWMD co-funds work on the project at a 50% level beginning on October 1, 2017 and extending through projected the 30% design stage and 3 rd party review of the project estimated for completion in May 2019. Available SWFWMD funding during this timeframe is $120,500. Pending an Authority Board determination to move forward with the project at the 30% design stage, and completion of third party review, the District would be requested to provide funds for the remainder of the project and amend the co-funding agreement accordingly. REGULAR AGENDA 1. Water Supply Conditions - Staff Presentation Water Supply Conditions at the Peace River Facility as of January 18, 2018. Water Supply Quantity: Excellent Treated Water Quality: Excellent January Water Demand January River Withdrawals Storage Volume: Reservoirs ASR Total 26.77 MGD 29.98 MGD 6.81 BG 6.92 BG 13.73 BG 4 P age
2. Peace River Manasota Regional Water Supply Authority FY 2017 Financial Statements and Independent Audit Report - Presentation Motion to receive and file Peace River Manasota Regional Water Supply Authority FY 2017 Financial Statements and Independent Audit Report as submitted by Purvis Gray & Company, pending the changes related to GASB 68. The firm of Purvis Gray & Company completed the annual audit of the Authority s financial records for the fiscal year ending September 30, 2017. There were no matters involving the internal control over financial reporting or significant deficiencies in operation noted in the audit that would be considered a material weakness. Staff recommends the Board receive and file the audited financial statements of the Authority for period ending September 30, 2017, pending the changes related to GASB 68. 3. Peace River Facility Water Use Permit Modification/Renewal Update Additional water supply project are planned at the Peace River Facility to meet future water needs in the region. Many of those projects rely on additional water availability from the Peace River, and that availability is controlled through a Water Use Permit (WUP) issued by the Southwest Florida Water Management District (SWFWMD). On October 2, 2017 the Authority submitted a Water Use Permit (WUP) Application to SWFWMD requesting the following modifications and renewal components: Increase allowable maximum day withdrawal from current 120 MGD to 258 MGD Remove average day and peak month delivery quantity limitations from the face of the permit Issue permit for a term of 50 years Staff will update the Board on the application progress. 4. Budget Process for FY 2018 information and discussion and no action is required. Staff will present the process and schedule for the preparation of the budget for FY 2019 for Board consideration and direction. Schedule for FY 2019 Budget Date February 2, 2018 April 4, 2018 May 30, 2018 July 25, 2018 Event Authority Board Meeting Budget Process Authority Board Meeting Adopt FY 2019 Tentative Budget Authority Board Meeting Authority Board Meeting Public Hearing and adoption of FY 2019 Budget 5 P age
5. 5-Year Capital Improvements Program and 20-Year Capital Needs Assessment Update Maintaining and expanding the regional water supply system to meet current and future needs in the Authority s 4-county service area will require a significant investment in water infrastructure over the next 20 years. The Authority s Strategic Plan recognizes that need and recommended development of a formal capital projects planning program. Per Board direction, projects planned within the upcoming 5 year horizon will comprise the Capital Improvements Program (CIP) and projects in the 6-20 year horizon will fall under the framework of a Capital Needs Assessment. Current planning projections beginning with Fiscal Year 2019 reflect the following: 5 Year CIP (FY 2019 FY 2023) o Total Projects: $94.8 Million o Projected Grants: $50.1 Million o Breakdown by Type of Project 76% Transmission Projects 23% Source Water Projects 1% Other Projects 20 Year Needs Assessment (FY 2019 FY 2038) note: inclusive of 5 Year CIP o Total Projects: $523 Million o Projected Grants: $251 Million o Breakdown by Type of Project 47% Transmission Projects 53% Source Water Projects The 5-Year CIP and 20-Year Needs Assessment are proposed to be included with the Authority s future budgets, beginning in FY 2019 and will also support efforts to obtain cooperative funding from SWFWMD and the State for regional projects. Authority staff will present the draft 20-Year Needs Assessment and 5 Year CIP to the Board for comment and direction. As we begin the FY 2019 budgeting process, these plans will be refined and proposed for adoption with the tentative FY 2019 budget in April. 6. Interlocal Agreements for FY 2019 Co-Funding Projects Staff Presentation The Southwest Florida Water Management District cooperative funding policy gives funding priority to projects submitted by Regional Water Supply Authorities/Entities. While that policy provides an advantage for regional projects, all projects submitted for SWFWMD co-funding must demonstrate that they have a local funding match to receive consideration for SWFWMD funding. For Authority projects that match can be from Authority CIP funds, or from contributions by one or more of the Authority s Customers or Partners. The demonstration of that local funding match if provided by an Authority Customer/Partner is through inclusion of the project(s) in the Authority s CIP for the funding year, and execution of an Interlocal Agreement between the Authority and the Customers/Partners that commits an appropriate level of Customer/Partner funding (usually 50% of the estimated project cost). Three projects submitted by the Authority for SWFWMD FY 2019 co-funding will require a local match from the requesting Customer - Charlotte County. This includes the following projects: Regional Integrated Loop System Phase 4 Segment 1 6 P age
Regional Integrated Loop System Phase 2B Interconnect Bachman Regional Pumping and Storage Facility The interlocal agreements for these projects are in development now and are required to be executed and submitted to SWFWMD in early April (2018) in order for the projects to be considered for funding in FY 2019. Staff will briefly review the projects and the structure of the proposed interlocal agreements, (similar in form to the attached Regional Integrated Loop Phase 3B Interconnect Interlocal Agreement) in anticipation of presenting final Interlocal Agreements for Board consideration on April 4 th. 7. Regional Integrated Loop System Phase 1 Interconnect [U.S. 17 to Punta Gorda] Staff Presentation Motion to approve Resolution 2018-02; A Resolution Determining the Necessity to Construct a Transmission Pipeline and Appurtenant Facilities Connecting The Terminus of the Peace River Manasota Regional Water Supply Authority Delivery System, On U.S. 17, Near the DeSoto/Charlotte County Line To The City of Punta Gorda Shell Creek Water Treatment Plant On South Washington Loop Road In Charlotte County ( Regional Integrated Loop System, Phase 1 ) Motion to approve Resolution 2018-03; A Resolution Authorizing the Acquisition of Certain Real Property Located Within Charlotte and DeSoto Counties, Florida, To Be Used For The Public Purpose Of Constructing, Operating, and Maintaining the Transmission Pipeline And Appurtenant Facilities On U.S. 17 Near the DeSoto County/Charlotte County Line, To The City of Punta Gorda Shell Creek Water Treatment Plant On South Washington Loop Road In Charlotte County ( Regional Integrated Loop System, Phase 1 ) a. Phase 1 Interconnect Project Update This project will interconnect the Regional system along U.S 17 in DeSoto County with the City of Punta Gorda s Shell Creek Water Treatment Plant. Staff will review the project and progress to-date. b. Resolution 2018-02 Phase 1 Interconnect Alignment This is a resolution affirming the need for the project and the recommended alignment. Staff will review the alignment, project benefits and need. c. Resolution 2018-03 Necessity for Acquisition of Certain Properties Along the Phase 1 Alignment This is a resolution authorizing acquisition of certain easements required for construction and operation of the project. Staff will discuss the required easements. Budget Action: None (Project funded by State and SWFWMD grants and City of Punta Gorda funds) 7 P age
GENERAL COUNSEL S REPORT 1. Conservation Rate Revision General Counsel will provide draft revision to the Conservation Rate methodology EXECUTIVE DIRECTOR S REPORT Staff will provide updates on the following issues. 1. Legislative Update 2. Orange Hammock Ranch Update 3. Strategic Plan Implementation - Update ROUTINE STATUS REPORTS 1. Hydrologic Conditions Report 2. Check Registers for November and December 2017 3. Regional Integrated Loop System Phase 3B Interconnect [S.R. 681 to Clark Road] 4. Partially Treated Water Aquifer Storage & Recovery Project 5. ASR Operating Permit Renewal 6. Peace River Basin Report BOARD MEMBER COMMENTS PUBLIC COMMENTS Open to the Public Three (3) minute time limit per person. Anyone wishing to address the Board on any issue should complete a request to speak card and hand to the recording secretary. ANNOUNCEMENTS Next Authority Board Meeting Authority Board Workshop Wednesday, April 4, 2018 @ 9:30a.m. Wednesday, April 4, 2018 @ 10:30a.m. Charlotte County Administration Center Charlotte County Administration Center Commission Chambers, Room 119 Building B, Room #106-B 18500 Murdock Circle, Port Charlotte, Florida 18500 Murdock Circle, Port Charlotte, Florida Future Authority Board Meetings May 30, 2018 @ 9:30 a.m. - Manatee County Administrative Center, Bradenton, Florida July 25, 2018 @ 9:30 a.m. - Sarasota County Administration Center, Sarasota, Florida ADJOURNMENT 8 P age