PEACE RIVER MANASOTA REGIONAL WATER SUPPLY AUTHORITY BOARD OF DIRECTORS MEETING. SUMMARY AGENDA December 5, 9:30 a.m. [AMENDED 12/03/18]
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1 PEACE RIVER MANASOTA REGIONAL WATER SUPPLY AUTHORITY BOARD OF DIRECTORS MEETING SUMMARY AGENDA December 5, 9:30 a.m. [AMENDED 12/03/18] Charlotte County Administration Center Commission Chambers, Room Murdock Circle, Port Charlotte, Florida CALL TO ORDER INVOCATION Commissioner Elton Langford PLEDGE OF ALLEGIANCE Led by the Board WELCOME GUESTS ALL MEETINGS ARE OPEN TO THE PUBLIC Commissioner Alan Maio, Sarasota County, Chairman Commissioner Elton A. Langford, DeSoto County, Vice Chairman Commissioner Ken Doherty, Charlotte County Commissioner Pricilla Trace, Manatee County 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. RESOLUTIONS/PRESENTATIONS 1. Employee Service Recognition The Authority s employees are its most valuable resources. Employee service recognition provides the Board with the opportunity to personally recognize and thank our dedicated employees who have achieved significant milestones in longevity with the Authority. The Authority is pleased to recognize the following employees for their years of service upon their retirement from the Authority. We wish them well and thank them for their contribution to the success of the Authority. Employee Position Years of Service Tom Dobbs Construction Manager 18+ Linda Burke Administrative Secretary II 11+
2 CONSENT AGENDA 1. Minutes of October 3, 2018 Board of Directors Meeting Motion to approve minutes of October 3, 2018 Board of Directors meeting. Draft minutes of the October 3, 2018 Board of Directors meeting are provided for Board approval. 2. Minutes of October 3, 2018 Board Workshop Motion to approve minutes of October 3, 2018 Board of Directors workshop. Draft minutes of the October 3, 2018 Board of Directors workshop are provided for Board approval. 3. Board of Directors Meeting Schedule for Calendar Year 2019 Motion to approve Board of Directors meeting schedule for calendar year As an independent special district under Chapter 189, F.S., the Authority is required to file an annual meeting schedule with the local governing authority or authorities. The proposed meeting schedule for calendar year 2019 has been coordinated with each of the Board members office. Authority Board of Director s meetings are typically scheduled for the first Wednesday of the month on a bi-monthly schedule. Note that due to conflicts the following meeting dates have been scheduled in exception. June Board meeting date moved (to late May) to avoid BOCC meeting conflict. August Board meeting moved (to late July) to accommodate BOCC vacation schedules. Upon approval the schedule will be sent to each county clerk and county commission chairman. Courtesy copies will also be provided to the Southwest Florida Water Management District and to the City of North Port. The meeting schedule is also posted on the Authority s website at 4. Salary Survey Market Analysis Motion to accept Salary Survey Market Analysis (The Archer Company, October 2018) and Authority Pay Plan revisions recommended. According to policy adopted in the Authority s Pay Plan, the Authority is to conduct a formal Classification and Compensation study at least once every 3-5 years and localized salary surveys are performed in the interim years by Authority staff. The last formal Classification and Compensation Study was performed by Evergreen Solutions in 2013 and the study was ratified by the Board in April In accordance with policy, Authority staff contracted with The Archer Company in May 2018 to perform a Salary Survey Market Analysis. The primary mechanism for assessing market equity is a salary survey of the organizations job classifications compared to a group of market peers. Eight (8) market peers in the geographic area from Tampa to Fort Myers provided data for the survey. Data from the Economic Research Institute (ERI) provided private sector data. Based on Archer s analysis, the Authority s current pay grades are overall competitive in the primary market for which the Authority competes for talent and overall, the Authority s actual pay rates are close to the average range midpoints in the market. Recommendations are contained in the Salary Survey Market Analysis to maintain the competitive environment enjoyed by the Authority and to correct its standing in the market where inequity is identified. The Archer Company recommends the Authority administer a 2.5% adjustment to the pay ranges and has 2 P a g e
3 recommended six (6) pay grade reclassifications in order to bring the Authority s average actual salaries in line with the market. Staff recommends that the Board accept and implement the recommendations in the Salary Survey Market Analysis as submitted by The Archer Company. 5. Authority Procurement Policy Revisions Motion to approve Authority Procurement Policy Revisions and give the Executive Director the authority to make technical corrections as approved by General Counsel. Procurement Policy revisions are proposed based on changes to state statutes. Revisions are also proposed to update Chapter (b) and Chapter (c) consistent with member government policy thresholds. 6. Declaration of Surplus Motion to approve Declaration of Surplus as listed, authorize the Executive Director to arrange for the public sale through auction of said materials and dispose of any materials left unsold. In accordance with the Authority s Procurement Policy, supplies may be declared surplus by the Board if they are no longer of use to the Authority including obsolete supplies, scrap materials, and nonexpendable supplies that have completed their useful life cycle. Supplies declared surplus will be offered through online public auction, recycling, donation to other government agencies and/or nonprofit organizations, or disposal if there are no offers for purchase or donation. 7. Interlocal Agreement for Phase 1 Interconnect Between Peace River Manasota Regional Water Supply Authority and the City of Punta Gorda - Amendment 1 Motion to approve Interlocal Agreement for Phase 1 Interconnect Between Peace River Manasota Regional Water Supply Authority and the City of Punta Gorda Amendment 1. In December 2015, the Authority and the City of Punta Gorda entered into an Interlocal Agreement (IA) to fund and construct the Phase 1 Regional Interconnect. The Agreement includes up to a $2,000,000 contribution from the City to Phase 1 and authorization to utilize $4,000,000 in state funding allocated to the City for the Phase 1 Interconnect Project. The current IA expires on December 31, Amendment 1 would extend the IA until December 31, 2021 providing adequate time for completion of the Phase 1 Regional Interconnect and the City s Reverse Osmosis facility. 3 P a g e
4 8. Closed Door Attorney Client Session Motion to conduct Closed Door Attorney Client Session pursuant to Section (8), Florida Statutes, on December 5, 11:30 a.m. (or as soon thereafter) to be convened in Charlotte County Administrative Conference Room (5 th Floor) to discuss settlement negotiations and/or strategy related to litigation expenditures covering the DOAH hearing captioned Polk Regional Water Cooperative (Case No ), Polk County (Case No ), City of Bartow (Case No ), City of Ft. Meade (Case No ), City of Lakeland (Case No ), City of Wauchula (Case No ) and City of Winter Haven (Case No ) vs. Peace River Manasota Regional Water Supply Authority and Southwest Florida Water Management District. Based on the seven petitions requesting formal administrative hearings that have been filed with the Southwest Florida Water Management District associated with the issuance of the Authority s Water Use Permit , Mr. Manson advised the Board of Directors at their October 5, 2018 meeting that a closed door attorney-client session is needed to discuss settlement negotiations and/or strategy related to litigation expenditures. The closed door attorney-client session will be attended by the following: Board members Maio, Langford, Doherty and Trace, Executive Director Patrick Lehman, General Counsel Douglas Manson, and a court reporter. REGULAR AGENDA 1. Water Supply Conditions Richard Anderson, System Operations Manager Status Report. This item is presented for the Board s information and no action is required. Water Supply Conditions at the Peace River Facility as of November 15, Water Supply Quantity: Excellent Treated Water Quality: Excellent November Water Demand November River Withdrawals Storage Volume: Reservoirs ASR Total MGD MGD 6.71 BG 7.81 BG G 4 P a g e
5 2. Regional Integrated Loop System Phase 1 Interconnect Project [U.S. 17 to Punta Gorda] Ford Ritz, Project Manager Motion to approve and authorize Executive Director to execute construction contract for the Regional Integrated Loop System Phase 1 Interconnect Project to Reynolds Construction, LLC for an amount not-to-exceed $8,228,000. a. Construction Contract with Reynolds Construction, LLC. Motion to approve and authorize Executive Director to execute Work Order No. 3 Construction Phase Services with King Engineering Associates Inc. for the Regional Integrated Loop System Phase 1 Interconnect Project for an amount not-to-exceed $897,470. Motion to approve 4 Stipulated Order of Taking and Final Judgement(s) which collectively provide 3 temporary construction and 3 permanent utility easements necessary for the Phase 1 Regional Interconnect with a collective cost of $171, In accordance with the Procurement Policy and Board prequalification of bidders, bids were solicited for the Regional Integrated Loop System Phase 1 Interconnect Project on October 4, The engineer s cost estimate was $10,556,000. Five bids were received on November 7, 2018 ranging from a low of $8,228,000 to a high of $10,806,100. Staff recommends award of the contract to Reynolds Construction, LLC. The bid includes an Owner s Allowance of $500,000 to be used, as may be needed, at the discretion of the Executive Director. The project is scheduled for completion in spring b. Work Order for Construction Phase Services with King Engineering Associates Inc. Work Order No. 3 for Construction Phase Services has been negotiated with King Engineering Associates Inc. for a cost of $ 897,470 which includes a 5% Owner s Allowance of $ 42,737 for use by the Executive Director in the event of out-of-scope work. Staff recommends award of the work order to King Engineering Associates, Inc. c. Approval of Property Settlement Actions Four (4) Stipulated Order of Taking and Final Judgement(s) have been negotiated on remaining properties needed for construction of the Phase 1 Regional Interconnect project. These will result in three (3) temporary construction easements and three (3) permanent utility easements at a cost of $171, The included instruments are finalized with respect to cost but are subject to final review by counsel as to terms and conditions. Staff recommends Board approval of these settlement actions as to cost with authorization for counsel to proceed for property acquisition. 5 P a g e
6 3. Lakewood Ranch Administrative Office Building Acquisition Ann Lee, Finance & Administration Manager Motion to approve acquisition of the Lakewood Ranch Administrative Office building for $2,125,000, which includes total escrow deposits of $125,000, and authorize Chairman to execute documents and bank note upon review and approval by Legal Counsel. Staff has negotiated a proposed acquisition of the current Administrative Office Building that the Authority now rents. The purchase price negotiated is for the appraised value of the building and includes escrow deposits totaling $125,000 ($25,000 upon contract execution and $100,000 upon the expiration of the 45 day inspection period). Acquisition of the building in lieu of continuing to rent has a payback period of roughly twelve (12) years. Staff recommends approval of the purchase and authorizing the Chairman to execute documents upon legal counsel review and approval of purchase documents and bank note with PNC Bank. 4. Legislative Priorities for 2019 Diane Salz, Legislative Consultant Motion to adopt Legislative Priorities for Diane Salz, legislative consultant to the Authority, will present draft legislative priorities for the upcoming 2019 legislative session for Board consideration. These legislative priorities will be presented to each of the Authority members respective County Delegation meetings. 5. Environmental Stewardship Programs Staff Presentation Mike Coates, Deputy Director Status Report. This item is presented for the Board s information and no action is required. The Authority s Peace River Basin environmental stewardship efforts have been ongoing for decades. Our HydroBiological Monitoring Program (HBMP) is the longest running and most comprehensive environmental monitoring program on the Peace River, continuously collecting data since The Horse Creek Stewardship Program (HCSP), which began in 2003, is a collaborative effort between the Authority and Mosaic to monitor conditions on Horse Creek to ensure that mining activities in the upper reaches of the Horse Creek basin don t adversely affect the system and impair the drinking water resource. Environmental management and monitoring efforts are ongoing on RV Griffin Reserve. Staff will make a presentation on these monitoring programs which are integral to the Authority s environmental stewardship efforts and overall management of our water supply. 6 P a g e
7 6. Rate Consultant Presentation and Board Discussion Mike Coates, Deputy Director Board Discussion and staff direction. No action is required. The Authority s 5-Year CIP, and 20-Year Capital Needs Assessment identify over $525M in new capital projects to meet regional water supply and interconnectivity needs in the next 20 years. The Authority s current capital project funding structure is examined and various funding alternatives are evaluated and presented by Stantec (the Authority s rate consultant) for Board discussion and direction. Budget Action None RECESS BOARD OF DIRECTORS MEETING Board of Directors meeting will recess for a closed-door attorney-client session. RECONVENE BOARD OF DIRECTORS MEETING GENERAL COUNSEL S REPORT Douglas Manson, General Counsel Motion to schedule Special Board Meeting to consider the proposed Peace River Cooperation Agreement settlement with Polk Regional Water Cooperative, et al for December 19, 9:30 a.m. at the Southwest Florida Water Management District Sarasota Service Office, 6750 Fruitville Road, Sarasota, Florida. EXECUTIVE DIRECTOR S REPORT Patrick Lehman, Executive Director Status Report. This item is presented for the Board s information and no action is required. CHAIRMAN S REPORT Commissioner Alan Maio, Chairman Motion to approve Amendment to Employment Agreement for Executive Director effective October 1, Authority policy provides that the chairman shall review the evaluation forms completed and submitted by each Board member and develop any appropriate recommendations which shall be presented for consideration by the Board. All Board members performance evaluations were presented at the last Board meeting and all were favorable of the Executive Director s performance. ROUTINE STATUS REPORTS 1. Hydrologic Conditions Report 2. Check Registers for September and October Regional Integrated Loop System Phase 3B Interconnect [S.R. 681 to Clark Road] 7 P a g e
8 4. Regional Integrated Loop System Phase 1 Interconnect [U.S. 17 to Punta Gorda] 5. Partially Treated Water Aquifer Storage & Recovery 6. Peace River Facility ASR Operating Permit Renewal 7. Water Supply Master Plan 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 agenda item or non-agenda issue should complete a request to speak card and hand it to the recording clerk. ANNOUNCEMENTS Next Authority Board Meeting Wednesday, February 6, 9:30 a.m. Peace River Facility & Water Quality/Training Facility 8998 SW County Road 769 (Kings Highway), Arcadia, Florida ADJOURNMENT Visit the Board Meetings page of our website to access the Agenda Packet 8 P a g e
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