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HomeMy WebLinkAboutDocumentation_Regular_Tab 09D_06/10/2004 ` • . RESOLUTION NO. 00/00 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AWARDING A BID PROPOSAL TO INTERCOUNTY ENGINEERING,INC., OF POMPANO BEACH FLORIDA, IN THE AMOUNT OF $377,502.00, FOR THE INSTALLATION OF THE WATER MAIN, IN THE TROPIC VISTA SUBDIVISION WITH FUNDING COMING FROM A SPECIAL ASSESSMENT BY MARTIN COUNTY AND AUTHORIZING THE VILLAGE MANAGER TO EXECUTE THE APPLICABLE PROPOSAL ON BEHALF OF THE VILLAGE. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS: Section 1. Consideration to award a bid proposal to Intercounty Engineering, Inc., of Pompano Beach Florida, in the amount of $377,502.00, for the installation of the water main in the Tropic Vista subdivision, attached hereto as Exhibit "A" and incorporated by reference as a pa�t of this Resolution is hereby approved and the Village Manager of the Village of Tequesta is authorized to execute the same on behalf of the Village. THE FOREGOING RESOLUTION WAS OFFERED by Councilmember , who moved its adoption. The motion was seconded by Councilmember , and upon being put to a vote, the vote was as follows: FOR ADOPTION AGAINST ADOPTION The Mayor thereupon declared the Resolution duly passed and adopted this 8th day of March, A.D, 2001. MAYOR OF TEQUESTA Pat Watkins ATTEST: Mary Miles Village Clerk Resolution\wynn&Sons.SeabrookRd. VILLAGE OF TEQUESTA VILLAGE COUNCIL MEETING AGENDA COVER/MEMORANDUM Date Prepared: June 3, 2004 Meeting Date: June 10, 2004 CLASSIFICATION: NEW BUSINESS Subject/Agenda Item/Summary: See attached AWARD CONTRACT: Intercounty Engineering, Inc. Tropic Vista Water main Installation STAFF RECOMMENDATION TO [X] APPROVE [] DENY Reviewed by: Costs: Attachments: Advertised: (please list) $377,502.00 Summary of project Date: April 25, 2004 Engineers Paper: Funding Source: recommendation to Palm Beach Post [ ] Operating award Bid [X] Other (explain) [ ] Not required Bid Proposal Martin County Affected Parties: Assessment Map of Area [ ] Notified (explain) Budget Acct. # Copy of Invitation to Bid Bid Tabulation [ ] None [ ] Not Re uired Submitted by: Originating Village Manager Council Action: Department: Approval: Russell K. White [ ] Approved Utilities [ ] Approved wlconditions: [ ] Denied [ ] Tabled to: T � -- ----- _..__— P G�` � s� �� : � TEQUESTA UTILITIES � `� � �� : ,��� ...h-_: o� DEPARTMENT MEMORANDUM ��, 4=',� ��' �y Co TO: MICHAEL R. COUZZO, VILLAGE MANAGER FROM: RUSSELL K. WHITE, PUBLIC SERVICES MANAGER SUBJECT: TROPIC VISTA / BID AWARD DATE: JANLTARY 6, 2004 The following is a brief summary of the above referenced subject: Low bid for the water main installation was received from Intercounty Construction, Inc. for the amount of $490, 628.00. By buying the material ourselves, using the alternate bid specified in the bid proposals we will save approximately $59,628.00. Therefore, I am recommending we award the bid to Intercounty for $377,502.00. The funding for this project will come from a special assessment by Martin County. The total installation cost to be added into the total assessment by Martin County will be $431,000.00. Please feel free to call me with any questions or concerns relative to this matter. Jun-04-04 01:04P P.O1 �ARCADIS REESE MA�ON & ASSQCIATES Ree3e, Macon and AssOCIatES,1tK. Infra.str��cru��, br�ildirig.,, �nvrronmPnt, c:omm��nrc:�:ttii�ns 6ais[akewonhRoad Suite 3D7 Lake Worth Florida 33463•2907 Mr, Russeli White Te) 561 A33 3226 Village of Tec�uCSia P.�. �OX 32�.� Fex 561 433 8011 www.arcadi�-us.cpm Tcyucsla, r'L 334G9 Subject: Tropic Vista Water llistribution System llear Mr. White: o��e: On May i 3, 2004 eight (8) bids were received �n the above referenced prujec.t. 'rhe ��e 4, Z004 bid was structured with a base bici and alternate bid items. The altecnate bid items de�ined unit custs f�r the "installatian pnly" of rn�jor con�ponents, with the Village ��o�Q C. Jcnsen, P.E. purchasing the materia] sep�t'at�ly. Nvr this project, it is recotnnu:nded that the Village purcha5e thc material separately, thereby xealicing a savings of $59,628 pfyone: based upon thc apparent low bidders costs. (561) 433-3226 The eight (8) hids are summarized below Email: AllCrnate tjenSettQ,�rcadis-us.COm �:ontractor Base Bid Bid item Total *Bid" Our ref: Intercounty Enbinccring $490 ,628.(}0 $158,658.00 $377,502.00 RF0003166.U001 B&R Unilcr�ound C:on�. $S 16,397.OU $156,11 S.OQ $448,625.00 Fe1ix Associates $591,442.a2 $224,219.66 $SZ2,64T.37 AKA Services $637,090.00 $z80,165.0U $549,565.00 Johnsan-Aavis $638,195.00 $264,39.1.00 $565,161.00 Olney Earihwnrks $647,392.9G $ I 37,277.45 $SG3,739_53 Chaz �quipment $653,730.00 $322,679.00 $581,884.44 Foster Marine Cuntr. $672,809.00 $2b6,581.00 $55'7,9$1.00 * Cost.r derivErd frvm subtracttng th� i�slullutivn/inaterta! cn.cts frvm the base. bid arrd uddin� r.ri the alternate hid ttem, installation only. The Engineer's cstimate for the overall proj�.ct was $520,000. W� havc investigated the qu�li �c�ti�ns of the apparent low bidder, lntercounty Enb'ineering, inc We havc; found #h�ir ('cmtractor's qualificatians to be in conformancc with the speeifiealion requiremeni5. 'Thc Contractor has had significant ex}�erienec with this type of wurk. We havc also contaeted numerous references and hdvc found the reaction to this firm to be universally positive. Part of �� biggPr picture J�n-04-04 01:04P p A,RCAD�S REESF MACQN !� ASSOCIATES Mr, Russcll Whitc Junc 4, 2004 We therefore recommend award ofthis cantract to, intercounty Engineerin�, Inc;. for their luw tot�l bid amuunt vf $377,502.00. This award amount impiements the alternate bid iic;m, th4-reby requiring the Village to }�urehase separacely the material at an approximatc cust of $ 53,a98.00 Sh�uld you have any questions or wish to discuss further, please call. VCIy tilll)' yUUIS, Reese, Macon and Associates, Inc. � ��. Thomas C. sc:n, .E. Page: G:�F1WP601[ORRCSP�TCriujOr•o�•i66'rraplcYStelowBid 6•I.Oa.dos 2�2 JUN-04-04 09-28 FROM: VILLAGE OF TEQUESTA ID- 5615756203 PAGE i - ! �' PxOPOSAL �Q= V�ILLAGE OF 2�QUESxA �,0. B(3X 3273 357 T'EQU�STA DR�VE TEQUESTA, FLORII7A 33469 FROM : �T-'C1"{��' 1' C�.�i �''\� .� ��fl S 1�.0 �� �'n� � �``' C' ' (�ereinafter x�efexred �o as �zdder) Gen�lemen: The undersigned, as Bidder, proposes to fur��.sh all, �abor, materia1s � ee�uipmex�t, services, and inc�.denkals n�ec�ssary ta perform all work �n accozdan�e with �.h� Cox�tract DQGUments e�t�,��, � V.��.Zage of xequesta Tropic Vista, W�t�r Dis�ributian Systetn,R 8ldder has also r�Ge�,ved mddez�da nv�be�$ ��hrau h �n�cluded their provisiona ia this progasal. �idd� � now sub�i s fol�,awing az�d hereby agxee� ; 1• The on�.y person (s) ix�teres�ed in tYiis bid, ar Agreemen�, as principal a=e i�amed here�.n; rhat the bic� is made without connect.ion with any orher perspn, campany, or parties makx�,g a b�.d; and th�t �,t i,s ,�n aX1 re�rp���� �a�r and i�t good faith withou� col�usian o� fraud, or other ixlegal practices. 2• �� kloYd Bid apezi unk�l an Ag�ae�rtent ha� be�st executed bettve�n the vi�lage and ��,e accepted �idder, or v�ti7, one, hundred tweaty (12�) ca�endar da�s �f�er tihe bid o,�en#,ag date, ahiahe�rer ig ehozter, �. To enter inta and execute an Agreemen� on �he basis of this prop4sal, within twe��y {�p) Ga��ndar days after the no�.ice of award o� the Contract is f ssued . To fux�i�h th� 10 0� Pex�oxmance 8ond and ].00�C Payrt►ent Bond in acCOrclanc� with the Cont�act Documents. Faixure to �xecu�e the CoritraCt and �urnish said �onds w�thin twenty(20) days shall �ause bid secu�ity to be forfeited, not as pena�,ty, but as fixed and liquidated damages faz co�ts and exP�nses �,ncurred, payable ix�to th� fu�nds of the Vi21ag�. 4. Tp staxt work within ter� {10) ca�,eridar d�ys oE th� Date of Commencemen� as est�blished in the Not:Ece tv Pzoceed. work sha��, be compl�ted within the number af Galendar days specifa,ed in Axticle 3 of the Coz�stzuction Agr�ement. .� . In thc ev�ent vt mt�ltiplicat3an, add�.�ian, oz c�,erical er�rc�r� on the Praposal Fc�rms, the Vi�lage maY carxect these er�ors La claxi�y the Bid�. The info�mation which �cesults in the lowest cpst zo �he V,�Ilage w.�3.1 be cvnsidex�d cozxect, and �hexefore utilized. AbI)�ND[JM NO. 1 P-1 JUN-04-04 09:2B FROM= VILLAGE OF TEQUESTA ID: 5615756203 PAGE 2 •.ny• 7 � • (.1q cT{':/,l1' K� . ():i v�l�age of xoquesta Tropic v���r tc��o� J�istriburian Syete� L1nik Price Bid 5�h�duXe A. �Rt7p�C vzS�A 1. PVC Pipe d_ H-inrh 2480 Lg $ --26.8a $.�.�'(a,�bf!�o b. 6 4720 L�' S�/•7v $ 1d,�,yty,, � . � . I . �'ipG a. 8-iacb 260 LF $ 3b-70 $_�.5"yZ. b. 6-inch 350 LF $ �(e^f3D $ g,b�r8. 3. valvts w/ Sox d. 8•3.nch 7 EA $ s/.b:,uo $�6�,.60a6.,, -�-�..,_ b. �' inGh 1 '� ,�7.�� ��l� od $ �j a, Qwvs 9. Tapping Sleev�� & Valveg �. 8" ac 8" l EA S`�,_,,,� o� $�;.33(� a c �.-w b. S" x 6* 4 �A $�,��c+., $�d�o.�. ��._ . s. n.z. �ictin�s �oao i.ss $� $ �_�,�, 6. Fire Eydra�nt Assembly 11 EA $�..�5'O.dQ S���-S�•,�� 7. Sar�pl e pQint 12 EA $•�,�O.vo $_ �, Z9D, Q p 8. Main Conn�rtiori I�OB LS $ , ZGQ, 9. Al2' R�IGRt�i' V��vE� 1 EA $��e $, �./�d� A,DL7�IJAUM NO. � P • � d3 -i66 JUN-�4-b4 b�:25 FRUM: VILLAG� UY TEQUESTA ID= 5615756203 PAGE 3 _ .�y— i il fi� c�:.' : �. f � I' . (74 village of Tequestrs Txopfc vieta Kater Distributiozt 6yatem Unit Frice Bid Schedule � Item Estiimdted Estimated ��,.,,.Ges�r�nkia� �uanti Ur� t r�ce Amou �Y �._ '�-....., ��.�. 10. Ter .�nd w/ �.0. 1 �A $ ��Q, $ ��CJ• r�+ 11. Road Restoxatian a. AsF�h�►1 t Replacement 650 SY $ Z/•uo $ bSQ.,,p b. Overlay p1�Cemer�t 95Q SY $/b.ao $/S, ?�ao. o0 .� ,,,_� � �2. �xiveway Restvz'ata,can a. Conczeta 1950 SY' $ Z�•� �� y�0, 70p• �e Y�_ Aupha].t 1350 SY $__ /t..�'O $! /5 ��?,S.00 �. ROGk/Stva� �QD SY $�Z, BQ $��a eo c3. k�avex Brf ck 300 SY $'!�O• 84 $/Z, 2�t�1. o0 �� 13 .' SC�d a. F'lor�tam 6000 SY $ � 09 $�'{, �YO. o . b. �ahia 3�00 SY $� d0 $//� 5'2p.,, �� .,.�."..,� P 14. Sc�xVlcC�s a- 1" Cvrp Stap 167 � $,57,, S 9.�Y9.�o . b. 1" Curb Stop 167 EA, S �lo..o ; 7 6,Z.e ..�,.�..� t. a^ x 1" Saddl e 4 7 EA S O•oo $_ _ 4�. Z.�O. o0 d. �° x 1'� SadB,�e 120 EA 5 8..o ;' _/l� e. .. �' PolY 9 S 00 LF $ 0• 8� y_ .3, 9/O• o,r f. Caswng (Directic+na�, sore) 75 F.x► $ Zy,�.�► $ t,g, .�z�.,,� ADDEN�7UM N0. 2 p` � 03-166 JUN-04-04 09=29 FROM: VILLAGE OF TEQUESTA ID= 5615756203 PAGE 4 Y311ag4 O� �equeet� Tzopic �i�ta wnter �iaksibuGioa Sy�tem Uni� Price Bid Schedule 15. ExisGing WM Abandonment a . S . E . �omewood Ave ( 6 ■ ) � JO� LS $� .� � o0 b. S. �. Fearnley Dr (4"j 1 JOB LS S_.c�. co c, S. E. Barus Dr ( 4" j 1 JOH L� $.__ ����, o0 . d. S.�, Robert U� (4") 1 J0� LS � L �an o � e. S.E. Bryan� Dr (4") 1 JOB LS $ g�p,� 1S. Sanitary Sew�r Lateral lModifications a. S. 8. Homewood Ave � � ��� p �, $� o � b. S. E. Fearnl�y Ave 3 E�y S�� a $ 9�� yo c. S.�. Baztts Dx 9� EA $.�� $__ i�tb. Wa d. S. E. Robert Dr 4 EA, �.�py.oe $ I, � r�. ,�,, --�---��--- �..,._ e. S.E. Hrya�,t Dr 4 EA $�D�! °� $ �, zi�-. f . S . E . Doherty S� � EA $ -�QV- vo $ /, z/v � �a ToTAL �AS� HYD (ICems 1 thru �.6I $ '�90 bZg• � ADDENDVM NO. 1 P-4 JUN-04-04 09=29 FROM: VILLAGE OF TEQUESTA ID- 5615756203 PAGE 6 The �ollawing is a campleke list o� thQ subcontractor� to b� us�d if the un�ersiyne� �s awarded the Cpntrac� for Ghis p��7���• T�e subco�traGtors perfarming more than $10,000 work (equi�m�nt and labor) on thi� project must b� �ist�d below. Subcont��ctaxs �amed below may noC be chang�d by the Contractox. The Owner may requ�sC a charig� under the texms o� applicabze �ections of th� G�neral Gonditions. ��e pt �Qrk Name and Addr�ss of Subcontractox ... �OT �i✓ s' ��rlx'r.,�� ,S / -s`/b�/N�✓t �'s ./� . d � �`G y~ � 3si ��.�v�:� .�a��/� �,r�r����c Ms.%t, /�9x .l� / ", i � `��.�,: �.."`_,....; .� f !s '���rrptFa •�r�/��'r,,c,, l"'-y "C'�/!-C/•i��/ Yl��7 l7r?°t��fLCr� 1j' ���.,�eers�J�+i1 �6� [7�e 7 Jl r �YP� i // D I �, ` ry � � � •�sPI / �. .�J 7 f `�� � i?"�'� � ,�,v�. ��' dl,� �io'7 �c�tr�i�.e/' � ., �� T ,�,� s {-„ r �' �'� �' �� � ��Z' � . �ated this �� •—, day oF g � . ( th) fyear) �i. • '� � , . . Contractor: 1'(1�2t'Cp��I'1�� ��; h�r: C1c� �tiC... . , � . �� CORPp�,.ATF �� Addres�: 1� oLS Nt�,.'� \$ S�r��� ` � �AL ;' � : , . �v� �y�t1t:7 '�e ��1 , G �... 3� 4�Jt�,°1 .� � — �"UC ��� O � . By: �'��.c� e. c c c� '�ta �t�.� ��-� �'1'� a.vt` �' c�. .� e 5, C'c5 i c�. � r��C' ��. �c�a. . � 'r��; d c�, �� S��n.'��r�.� nn�a�nuri Nn . a. mo�.a�cz � �• �'�ie_� p- s P �h �_ F'o►��,�� -�'st��ryy JUN-04-04 09:29 FROM: VILLAGE OF TEQUESTA ID: 5615756203 PAGE 7 �� , � TRENC� SAF�TY AC� � (90-96, Laws o� FlArida) Bidd�r acknow��g�s th�t includ�d in the app�opr�ate bid it�ms t of th� pxopnsal and in the �o�al Bid �ric� are rvs�s for � cAmplyin� with the Floxida Tzench Safety Act (90-96, Laws a� Flflx�da) effective Ockv�er 1, 199p. The bidder furth�z id�nkifies the costs ot �uch comp��anc� to be summarized be��w: Treneh Sa�ety Un�t of Measuze Measure �nit U�it Exrended �b s ri i n LF � ,� an t Co�„� Cos A. �� �.�t� �'11�'Jt�.�C �-� "� .� 20 �. C� Q. /' s, ' � _ � c. �. � � ' ��T� $ 0. � Tf a�plf.cable, the Con�x�ctpr certif�.es that ail tr�nch �xcava�ion done within his eontzol .�n exc�ss o� five �eeG 3n depth shall be in accoxdance with the F�.orida Department of Trans�ortat�,an's S�ecia�, �xovis�.ons Art�,cle �.25�1 and sub- a r t i c�, e 12 �S - 4.1 ('�I EXt�iV�7,'ICN SA,FF'a'.y � AN� g�, SP�TAL,- �RII�� k�Cf�1V�,CCN) . �'ai],ure to �omplete th� �bove may xesult 3n the bid being d�cZa�ed non.-respor�aive. Contractox agr�es that the abov� sa��ty cpmp3.�anc�s and cosCs aze included itt his b�.d pack�ge. . .- gnatur o 'dd�ng Contracto ���`�' , � `�'� � � E' � � �1�'S, �{�.�iC�1E(1� � �1'� �.� � �'� �.'1�e c'� .�r `� c. , . � � � , TSA-1 03 • 16fi JUN-04-04 09_29 FROM= VILLAGE OF TEQUE5TA ID: 5615756203 PAGE 5 vil�aga of Tec�ue�ta Tsopia viat� water Dir�tribu��.om Syetem Unit Price Bid S�hedul� Item Estimat�d Estirnated I�'O.D•G+SC��p _inn d �.t 93� nt v ni� pri�g Amount ��. ALT�;i2NAT� BI� YTTM (MI�,T�RZAL INSTAI,x,ATZON ONI��') 1. �VC I�ipe a. 8-inch ?500 L� $ J(�, yp �� . o p b. 6-inch 5240 LF $__�f�! qp $�.�,.�(„p.oa . ------�-�--_ 2. D.�. Pip� a. e-;lnch ' 510 I,�' $ �� no $ 7lyd oc ^.-- � b, 5-�in�h 7'00 L�' $ /� $��d�� 3. VaZves w/ Box a. 8 7 EA $ `��O.uo $ �,O/O. b. 6-3.nch �� x � $ ��Q $� 4. Fi�'e Fiydrari� il EI� $ u�"/!/. oo $.S" Assetabl.�` - �� •G�/a �F 5. Sexvices a. lp Corp Stop �67 '£A $ z�,oc $�pQd?, b. 1� Curb Stop Z�� � s p T �._,. �.,�.;_�v� ��_ �ODO ' CO c. 8" x 1" Saddle 4 7 F„� $�� � / zzL . �, o d. G" x 1" Saddle 120 EA $__ Zb.�.a �. 3,lzD. 0 0 � �. 1 Poly 4600 LF $ 4•'!�� $__ �i��/Q,nD 6. Tapping s�.eeves & Valves a. 8" x 8" 1 FA $ /O, p $ y/O.on b. 8" ac 6" 3 EA /�/� 5�--�:�,,0 S^`;�! �i�O. VO .A.1�DE2JDUM NO. 1 P-S HPr-Lb-U4 U/t�bA P.O1 € . R"! f°� IL��I � � � � INVITATION TQ BID � VILLXIGE OF TEQUESTA TROP2C VTSTA WATER DISTRIBUTION SYSTEM Sealed proposal� will be received by the undersigned at th� Village of Tequesta, Publa.c Works Facility, 1o�ated at 136 Sridge Road, Tequesta, FL 33469, until 3 p.m. on May �.3, 2004, at;which time and p�.ac� they will be publicly opened and read aloud. Receip� of a bid a.n any other village office does not eaCisfy tha.s requirement. The wvrk for wh�ch this proposal i� to be submitted consis�s of construc�ion o� a water distribution system to s�rvice 108 existing singl� family resi.dences . Al1 work performed shall be in accorciance with Ghe Contract bdcuments pertaining thereto, which may be examined at the office of ARCADIS Reese, Macon and Associates, Ync., 6415 Lake Worth Road, Ste. 307, Lake Worth, �'lorida 33463. One copy o� the Contract Documents, including blank bid fprms, may be obtained at the office of ARGAbIS Reese, Macan and Associates, Inc., upon payment of $50.00, which amount w�.11 not be refunded. A certified ar cashier�s check on a national or state bank or a bid bond in a sum x�ot l�ss �han five percent (5�) of the amount of the base bid price, made payable to �he Vil�.age of Tequesta, Florida, sha�.l accompany each proposal as a guarante� that the bidder will not withdraw fr4m the competition after the opening of proposals. In the event that the cantract is awarded to the bidder, he will enter into the contract and furnish and pay f�r the required performance and paymen� bonds. Failing to do so may result in �he Own.�r rekazning the bid deposit fvr liquidated damages. Proposals shal]. be prepared, addressed and submitted in compliance wi�h detailed instructions as set �orth in the Tnstruct�ons ta Bidders. The perfQrmance and payment bonds in th� �ull amount of the Cdn�,xact price sha7.l be writ�en by a surety company, acceptable to the Owner, licensed to do business in th� Srate of F1Qrida lYeted in the Department of Treasury F�deral Reg.ister. Al1 bonds (bid, performance, payment) shall be countezsigned by a Florida resident agent. sux�ty shall have a rating ot "A+�� or ^A" by Best�s Ratina Guide. The Owner reserves the r�.ght ta reject any ar alI pr�posals with or without cause, to wa�.ve �echnical errors and infdrmalities, or �o accept the propoeal which in his judgem�x�t be�t serves the owner. Owner: village of Tequesta Published pn; April 2S, 2004 � � • � Post-IT` Fax Note 7671 Date ��� ����,�► � To KUSS�.V From - r� .� � C�� 1Dcpl. Co. :. _ _ _ _ ._ . � _ _ _ _ _..._.� _ _ _. __. .._. - � F'ilt;ne I! ... .. . . ... I'hone F - fax 11 Fax A � � _ Reese, Macon & Associates, Inc. ' � � � �c� �sr� , £ . �, ; ,, j �. . I..:� ,I.S� w' � , � � z� �r�� ' �' ���������� �� �� �� � ;�� � °�� , t����s� �a `�,.� �'���� � � : . ° � �.. • . . � , '� v � � � '� A . E �, v� � +�. i ; � xs � , m �' - �.w�t ti y �, °,63.. s ����t �.,,r �� ����4:'� . . , . . . r,. . ' _.. . . ... . � ,,. ,,,,'; � ..�., i , '. .:::u �.w �zr� .� .:. • � � . , _ , <. , .s� ��� ; s., a� BID OPENING: 1VIAY MAY 13,2004 TIME: 3:00 �'.M. ADDENDUM ADDENDUM ADDENDUM BID CONTRACTOR NO. 1 N0.2 NO. 3 BOND BASE LUMP SUM BID PRICE Chaz E ui ment Co. � X ✓ X / X � � S3 '� 3p , 0 O Olne Earthworks, Inc. .( X X f X✓ L -� 3 � � Intercoun En ineerin , Inc. J X ,/ X ✓ )( ,� ��0 �o Z� . o a Foster Marine Contractors . )( X x✓ �, � � o� �� B&B Under round X✓ X � X ✓, �(�C � �, �. 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COUIVTY LII� RQAQ _ -- - -_ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ n f --e�.oac oeslau� �NO. a� �r�x) ---`- oasrn+c w�TCn wn+ U -- �a�o�n w�ren ��w � rnaPOS�o rrcoau�r DlDIC�7E5 PROP05EU ASSE591ENT Iw PR01'OSED OATE VALVE A" Ifr vROaosm m�niu �o w/ a.owar (t9185)� �ooRESS Ha '' R�1� TROPIC VISTA ,�t� �m �m ,�. ���+�n«�5 WATER SERVICE ASSESSMENT II1D[CATES iHAT ADOPE55 a cuvm,nr san�m er Reese, 1[acon and Aseociates, Inc. Aw �v OF lEIXESTA 841b Lake �orth Road, 3ulte 9oa� AREA Lake �orth, FL 33483 Tel. (681) 435-9220 IIIDICATES lritT ADOItE55 Certiflcate No. 4767 HAS 11A7FA YA7! IN FRONT ��T� ���r Desfgned By Drawn By Check 8y Approved By Date: Scale: Job Number: Sheet No. oate B A rov. Revislon Descri tnn T.C.J. T.S. FEB. 2003 1"= 200' 03-106.4 � of 1 I�.D. B acku will be rovided 1� p under s e arate c over next p week. PUBLIC BRIEFING DOCUMENT CHAPTER 180.301 FLORIDA STATUTES , � � ��� r ti __ -.:.5�"r• � ���..� t' �-. � �l�h, � � . ��.s, t ; � c �' y �: r ' � .; _� �`� �,� � �;' �� a �� � � ACQUISITION OF THE R4LLING HILLS WATER FA�ILITIES OF THE JUPITER-MARTIN WATER ASSUCIATES, INC. UTILITY SYSTEM Prepared for VILLAGE OF TEQUESTA, FLORIDA June 2004 , _ r_ � ,.. �.i PUBLIC BRIEFING DOCUMENT CHAPTER 180.301, FLORIDA STATUTES ACQUISITION OF THE ROLLING HILLS WATER FACILITIES TABLE OF CONTENTS Section No. Title Pa�e 1.0 BACKGROtJND 1-1 1.1 System Background 1-1 1.2 180.301 Statement 1-2 2.0 INCOME AND EXPENSE STATEMENTS 2-1 3.0 BALANCE SHEETS 3-1 4.0 STATEMENT OF EXISTING RATE BASE 4-1 5.0 PHYSICAL CONDITION OF THE UTILITY FACILTIIES 5-1 6.0 REASONABLENESS OF PURCHASE PRICE AND TERMS 6-1 7.0 IMPACTS OF PURCHASE 7-1 8.0 ADDITIONAL INVESTMENT REQUIRED 8-1 9.0 ALTERNATIVES TO THE PURCHASE 9-1 10.0 STATEMENT OF QUALITY SERVICE 10-1 11.0 STATEMENT OF PUBLIC INTEREST 11-1 K:\1056-021Rpts�Briefwg Document�BrietTOC.doc 1 PUBLIC BRIEFING DOCUMENT CHAPTER 180.301, FLORIDA STATUTES ACQUISITION OF THE ROLLING HILLS WATER FACILITIES LIST OF TABLES No. Title Table 2-1 Estimate of Net Contribution Margin of Acquired Service Area Table 3-1 Estimate of Net Replacement Cost of Acquired Service Area Facilities Table 6-1 Comparable Sales Analysis — Rolling Hills Service Area K:\1056-02Utpfs\Briefmg Document�BriefTOC.doc 11 SECTION 1 BACKGROUND 1.1 System Background The utility system owned by the Jupiter-Martin Water Associates, Inc. (JMWA), a Florida Non- profit carporation, is a privately owned water utility system which provides water service in south Martin County (the "County"). JMWA owns and operates a water distribution system which provides service within the corporate limits of the Town of Jupiter Island (the "Town") and to the Rolling Hills subdivision and surrounding properties within unincorporated Martin County. With respect to the acquisition of the JMWA by the Village of Tequesta (the "Village"), only the Rolling Hills subdivision and those properties located within unincorporated Martin County (the "Acquired Service Area") are being purchased by the Village. Those properties located within the Town are to be acquired by the Town coincident with the acquisition of the Acquired Service Area by the Village. The Acquired Service Area presently serves approximately 46 residential accounts. The JMWA water facilities located in the Acquired Service Area consists of a water distribution system; all potable water requirements are provided by the Village on a wholesale or bulk basis pursuant to the Water Service Agreement dated January 10, 1983 between the Village and JMWA (the "Water Agreement"). It should be noted that the Village provides the potable water requirements to all of the service area that comprises the JMWA Water System and was scheduled to terminate on June 1, 2007. The Acquired Service Area includes approximately 4,7001inear feet of 4-inch, 6-inch, and 8-inch water distribution mains and road crossings, 8 fire hydrants, and other appurtances associated with the water distribution system including associated water service lines and meters to the 46 individual water customers. The rates for the JMWA system, including the Acquired Service Area, are not regulated by the County, the Town, or the Florida Public Service Commission (FPSC) but by the owners of the corporation. The rates for service are based, in part, on the cost of bulk service from the Village adjusted for costs associated with its retail distribution system. This transaction would allow for the Acquired Service Area to be integrated with the Village's existing water system and would allow the Acquired Service Area to be regulated by the Village Council. The transaction would provide benefit to the constituents of the development due to i) the availability of long-term, reliable water supply; ii) availability of ability to provide operations under a municipally operated system, including ability to finance future improvements to such system; and iii) would allow for the continuity of service (going concern). The transaction will not affect the existing customers of the Village's utility system since the Acquired Service Area will be a retail customer of the Acquired Service Area and will not be subject to receiving service from any other provider once the term of the Water Agreement ends. As such, the transaction should not compromise the ability of the Village's utility system to meet the financial requirements. K:\1056-02\ Rpt\BriefDoc\Briefmg Document.doc I-1 1Z Requirements of Chapter 180.301, Florida Statutes Any potential utility transaction that results in the transfer of utility ownership from one entity to another is governed by Section 180.301 of the Florida Statutes that state: 180.301 Purchase, sale, or privatization of water, sewer, or wastewater reuse utility by municipality. No municipality may purchase or sell a water, sewer, or wastewater reuse utility that provides service to the public for compensation, or enter into a wastewater facility privatization contract for a wastewater facility until the governing body of the municipality has held a public hearing on the purchase, sale, or wastewater facility privatization contract and made a determination that the purchase, sale, or wastewater facility privatization contract is in the public interest. In determining if the purchase, sale, or wastewater facility privatization contract is in the public interest, the municipality shall consider, at a minimum, the following: (1) The most recent available income and expense statement for the utility; (2) The most recent available balance sheet for the utility, listing assets and liabilities and clearly showing the amount of contributions-in-aid-of-construction and the accumulated depreciation thereon; (3) A statement of the existing rate base of the utility for regulatory purposes; (4) The physical condition of the utility facilities being purchased, sold, or subject to a wastewater facility privatization contract; (5) The reasonableness of the purchase, sales, or wastewater facility privatization contract price and terms; (6) The impacts of the purchase, sale, or wastewater facility privatization contract on utility customers, both positive and negative; (7) (a) Any additional investment required and the ability and willingness of the purchaser, or the private firm under a wastewater facility privatization contract, to make that investment, whether the purchaser is the municipality or the entity purchasing the utility from the county; (b) In the case of a wastewater facility privatization contract, the terms and conditions on which the private firm will provide capital investment and financing or a combination thereof for contemplated capital replacements, additions, expansions, and repairs. The municipality shall give significant weight to these criteria. (8) The alternatives to the purchase, sale, or wastewater facility privatization contract, and the potential impact on utility customers if the purchase, sale, or wastewater facility privatization contract is not made; and K:\1056-02\ Rpt\BriefDoc\Briefmg Document.doc 1-2 (9) (a) The ability of the purchaser or the private firm under a wastewater facility privatization contract to provide and maintain high-quality and cost-effective utility service, whether the purchaser is the county or the entity purchasing the utility from the county. (b) In the case of a wastewater facility privatization contract, the county shall give significant weight to the technical expertise and experience of the private firm in carrying out the obligations specified in the wastewater facility privatization contract. (10) All moneys paid by a private firm to a municipality pursuant to a wastewater facility privatization contract shall be used for the purpose of reducing or offsetting property taxes, wastewater service rates, or debt reduction or making infrastructure improvements or capital asset expenditures or other public purpose; provided, however, nothing herein shall preclude the municipality from using all or part of the moneys for the purpose of the municipality's qualification for relief from the repayment of federal grant awards associated with the wastewater system as may be required by federal law or regulation. The municipality shall prepare a statement showing that the purchase, sale or wastewater facility privatization contract is in the public interest, including a summary of the purchaser's experience in water, sewer and wastewater reuse utility operation and a showing of the financial ability to provide the service, whether the purchaser is the county or the entity purchasing the utility from the municipality. The remainder of this document provides a summary of the above considerations. K:\1056-02\ Rpt\BriefDoc\Briefmg Document.doc 1-3 SECTION 2 INCOME AND EXPENSE 5TATEMENTS 180.30(1) The most recent available income and expense statement for the Utilitv. Based on discussions with JMWA, no financial information regarding the operations of the JMWA system was provided. Additionally, the utility does not segregate the operations of the utility area by specific service area (i.e. — the area to be purchased by the Town and the Acquired Service Area to be purchased by the Village) and, therefore, no statement of income and expenses for the Acquired Service Area was provided to the Village. Furthermore, the operations of the JMWA utility system are not subject to regulation by the FPSC which would require the annual filing of an Income and Expense Statement. However, information regarding the customers served and the revenues derived from the operations of the Acquired Service Area was available to the Village since the bills for bulk service provided by the Village are based on the number of ineters or accounts served by JMWA. Based on previous analyses performed by the Village, it is estimated that the net contribution to the Village's Water System from the Acquired Service Area is as follows: Table 2-1 Estimate of Net Contribution Margin of Acquired Service Area Annual Amount Estimated Sales Revenue $15,074 Ditect Cost of Water Supply [lJ 5.979 Net Contribution Margin to System [2] 0 483 [1] Amounts represent allocated cost of the Village's water production and treatment expenses, billing and a contingency allowance for the estimated water sales to the Acqu'ued Service Area. [2] Amount represents net revenues available for other system expenses and capital improvements not considered as a ditect cost of service. It should be noted that the Village currently receives such revenues from the Acquired Service Area pursuant to bulk service being provided pursuant to the Water Agreement. However, the acquisition of the Acquired Service Area will allow the Village to continue to receive such contributions beyond the current termination date of the Water Agreement since the Village would now be the retail provider of potable water service. K:\1056-OZ\ Rpt\BriefDoc\Briefmg Document.doc 2-1 SECTION 3 BALANCE SHEETS 180.301(2) The most recent available balance sheet for the utilitv, listin,� assets and liabilities and clearlv showin� the amount of contributions-in-aid-of-construction and accumulated det�reciation thereon. As previously mentioned in Section 2, no financial information regarding the JMWA operations was provided and the utility does not individually segregate the operations of the Acquired Service Area. As sucY�, na Balance Sheet or Statement of Financial Position is available for the specific operations of the JMWA System or the Acquired Service Area system . Presented on Table 3-1 is an estimate of the net plant in service for the water facilities located within the Acquired Service Area as provided by JMWA, which is considered by the Village to be subject to acquisition. Since the water production and treatrnent facilities will continue to be provided by the Village's regional facilities, no applicable utility assets is shown for the Acquired Service Area (only a water distribution system and corresponding customer base being acquired). The estimate of the net plant in service value of the remaining assets was based on i) the facilities in service within the Acquired Service Area based on an inventory of facilities provided by JMWA; ii) estimates of the current replacement cost and average service life of such facilities; and iii) other information as provided by the Village and its engineering consultants. The estimate of the net plant in service for the Acquired Service Area system is considered to be the estimated net replacement cost of the applicable utility plant facilities as of the Fiscal Year 2002. As shown on Table 3-1, the estimated net replacement cost of the Acquired Service Area water facilities is approximately $68,300. As can be seen on Table 3-1, the facilities comprise of a water distribution system and do not include any water production and treatment facilities. Table 3-1 Esrimate of Net Replacement Cost of Acquired Service Area Facilities [1] Estimated Replacement Cost Replacement Cost Less Depreciarion Water Distribution Mains $92,945 $57,6Q3 Valves and Valve Boxes 7,176 968 Fittings 13,986 8,580 Hydrants 17,780 1,185 Service Connections 31,100 Total Estimated Facility Costs 16 336 [lJ Amounts based on information provided by Village Consulting Engineers; amounts reflect 2002 analysis and costs_ K:\1056-02\ Rpt\Briefl�ce\Briefmg Doeument.doc 3-1 SECTION 4 STATEMENT OF EXISTING RATE BASE 180 301(3) A statement of the existing rate base o the utilit� for re�ulatorv nurnoses. Generally speaking, the rate base of a utility company represents the depreciated cost to the utility company of the plant and facilities financed by the owners of the utility which is used to provide service to the public. Specifically, rate base of a utility includes gross plant in service, less accumulated depreciation and net contributed capital and/or plant, an allowance for working capital, materials and supplies inventory, and certain other financial considerations. The concept of rate base essentially deals with the establishment of rates for a privately-owned utility which is usually regulated by the Florida Public Service Commission (for private utilities operated in Martin County). The rate base represents the level of equity investment of the utility system by the owners of such private utility for which they are allowed to earn a rate of return. The JMWA is a non-profit corporation and is not regulated by the FPSC. It is the Village's understanding that such corporation has not set rates based on a rate-making approach which would include a rate of return on its equity in the system. As such, establishment of rates for the JMWA system does not recognize the provision of a return on rate base. Finally, because JMWA does not separately account for the individual operations of the Acquired Service Area, the components of the rate base are not readily available. Therefore, this statement is not applicable for this transaction. As previously mentioned in Section 3 of this Briefing Document, the estimated net replacement cost of the utility plant located within the Acquired Service Area subject to acquisition by the Village was estimated by the Village's Consulting Engineers to be approximately $68,336. K:11056-02\ Rpt\BriefDoc\Briefmg Dacument.doc 4-1 SECTION 5 PHYSICAL CONDITION OF THE UTILITY FACILITIES 180.301(4) The nhvsical condition of the utility facilities beingpurchased or sold. As part of the evaluation of the JMWA system, the Village's Consulting Engineer performed i) a site inspection of the above ground assets; and ii) reviewed the Fixed Asset inventory and facility information as provided by JMWA. With respect to the water distribution system, the overall condition of the current facilities was considered as being good to average which is expected based on the age of the facilities. K:\1056-02\ Rpt\Briefl�oc\Briefmg Document.doc -1 SECTION 6 REASONABLENESS OF PURCHASE PRICE AND TERMS 180 301(S) The reasonableness of purchase or sales price and terms. Based on the review of the utility assets which would convey to the Village from the seller of the Acquired Service Area system as a result of the transaction, and the proposed acquisition payment terms of the seller, the Village is of the general opinion of the following: 1. The acquisition price as negotiated with the owners of the JMWA system for the utility water assets that comprise the Acquired Service Area facilities of $40,000 is a reasonable proposal. This transaction price was based on i) an analysis of the net present value of the future cash flow of the Acquired Service Area based upon a) the application of the existing Village utility rates and b) the estimated direct costs to operate the Acquired Service Area system (reference Section 2 of this Briefing Document for the discussion on the Income and Expense Statement of such service area); and ii) the net replacement cost analysis performed by the Village's Consulting Engineers (reference Section 3 of this Briefing Document for the Discussion of the Balance Sheet of such service area). 2. In addition to the review of the Acquired Service Area acquisition price based on the net present value of the contribution margin of the utility and the estimate of the net replacement cost of the assets to be acquired, a comparison of the purchase price to other recent utility transactions was also prepared. As shown on Table 6-1, the asset price is comparable with the amounts paid for other water utility systems by other local governments. This relationship is summarized below: Amount Purchase Price of Acquired Service Area $40,000 Assumed ERCs Served 46 Average Purchase Price per ERC $869.57 Average Purchase Price per ERC of other Utility Transactions [l] $1,824.19 Implied Purchase Price [2] 83 13 [ 1] Derived from page 3 of 3 from Table 6-1; represents average rate for all utility transactions surveyed. [2] Calculated based on ERCs of the Acquired Service Area multiplied by the Average Purchase Price of the other Utility transactions. K:11056-02\ Rpt\BrieII)oc\Briefmg Document.doc 6-1 3. The estimated net replacement cost of the acquired water utility plant facilities located within the Acquired Service Area was estimated by the Consulting Engineer to approximate $68,336 under current facility conditions (reference is made to Section 3 of Briefing Document). The estimate of the net replacement cost of the applicable service area assets is greater than the purchase price, which further supports the overall reasonableness of the amount to be paid far the utility assets. K:\1056-02\ Rpt\Briefl�oc\Briefmg Document.doc 6-2 Table bt Page 1 of 3 Village of Sequeeta Companbk Saks Malysis -Ra➢iogADls Service Area Comoarrbk Salea Anahsis - Develooment of Time-Adiusted Purchase Pr_icea L'mc Ycer Purchaxc Timc Adj. Adjuxtcd No. NamcofUtility(Scllcr) NamcofPurohascr Porchaacd Pricc Faclor(1) PurchencPr. i FbridaCiticsWat�Comymny-YoircianaUtiliticx,tnc. FloridaCwvcmmcntalUtilityAuttwrity 1999 S 25,216,737 10.N5% S 27,952,753 2 Florida Citics Watcr Company - Saravota Systcm Florida Crovcmmcntal Utility Autbority 1949 12,493,568 10.R5% 13,Et49,120 3 Spracc Crcek Sootl� U�ilitiev, Inc. Florida Watcr Senriccs, Tnc. 2000 7,321,236 (2) 731 % 7.R56,41R 4 FloridaCilicxWatcrCompany-North/SOUthFtMycrx LccCounty 1999 12R,859,IX3 10.R5% i42,FS4Q464 5 FloridaPublicUtiliticxCompany CityofFetnindinaBcach 2003 lA,3S5,070 (3) 0.00% 7A355,070 6 OrtcgaU[ilityCompany JEA(DuvalCounty) 199R 7,150.000 13.SS% A,152,A90 7 AquaSourcc Utiliticx, Inc. (Rotonda Sys[cm) Charlottc Counry 199R 2Q300,000 13.i5 % 23,050,650 8 Unitcd Watcr of F{orida, Tnc. IEA (Duval County) � 2001 219,690,000 5.95 % 232,030500 9 BSW_In¢ MartinCounry 1998 695,000 (4) 1355% 7R9,I73 FIO/IA8 W81�T SCNICCR� Inc. - Fox Run, Lcliani Hcighta, 10 and Fixhrnnank Havrn (bnndlcd purchasc) Manin Counry 2003 2350,000 0.00'/ 2,150,000 Florida Wata Scrviccx, Inc. - Bcecon Hillx, Woodmcrc, � ll Palm Vallcy, Rcmington Forest (bundlcd purchaec) JEA (Duval County) 2001 25,000,000 0.00% 2i 12 Florida Watcr Scrviccx - Palm Coast Sys[em Ciry of Paim Coaxt 2007 82,772,934 (5) 0.00 % 82,772,934 13 Florida Wata Scrvicc.v - Spring Hill Sy�cm Hcmando Coonty 2003 75574,025 (5) 0.00'/ 35.5?4,025 Florida Watcr Scrviccs - Marco Ixland m�d 14 Marco Shotcv Syslcmx (bundicd p�rchaac) City ofMazco island 2003 A5,313,143 (5) 0.00°/a R5,719,143 IS Florida Watcr Scrviccx - Citras Florida Govcm�ricntal Utility Authority 2003 16,OSR,337 0.00'� 16,058,337 16 FloridaWatttScroiccx-Lchigh FlorideCro�•cmmcnt�lUtilityAuthoriry 2003 34S03,i3A � 0.00% 34,50357R (1) AdjuMmcnt �o rcftcct inflationary cffcctx u�an purchasc �micc; bavcd on conxlrvction cost indcx ac ryub�ishcd by Ihc Enginecring Ncwx Raord. Indc�c facto`x asxumc thc changc from Junc I st of cach ycar (midycer convcntion) and wcrc dctmnincd ac fol lows: Pcrccnt Fiacal Ycar Indc�c Changc 199A SR95 IJ.55% 1999 60�9 10.8�% 2000 6238 7.71 % 2001 631A 5.95% 2002 6532 2.4%% 2003 6694 0.00% (2) Purchaxc pricc includcd: i) cavh paytnrnt at closing; ii) futurca paymcnts for growth through 2005; and iii) a cash �raymrnt oncc a ccrtain nvtnbcr of ERCa havc 6cen conncetcd. Extimated �mrchanc pricc dctcrtnincd as follom: Amonnt Natc.a Cach at Glaving S 5,500,4R0 Prcxcnt Valuc of Funires Paymcnis 1 hcxumc 200 ERCs at $I500 per ERC, dixcauntcd at 6% Pravi.�nt Valuc of Futurc Cash Paymcnt 557,047 At 200 ERCx per ycay rcach 3300 ERCx in ycar 17 A.4sumcdPurchascPriccofUfility S 7,721,296 (3) Purchaac pricc includcd: i) caqh paymcnt at clwving, ii) fuNrcfl �reymcn�x for growth throagh 2005; m�d iii) a caxh paymrnt oncc a ccrtain numbcr of b'RCs havc bccn . connatcd. Eatimatcd purchasc pricc dacrmined av follo�vs: Amount Notc.c Cash at Claving S 18,950,000 Proxcn[ Valac of Futures Paymrnis 2,212,796 h4xumc 300 ERCs at S 1500 per ERC for 6 ycazs, diccoumcd at 6% Pruwcnt Valuc of Final FuNres Paymcn[ 3,192274 Diffcrcncc bctwccn 57,500,000 and paymcnts to datc, diwountcd at b% h4xumcd Purchasc Pricc of Utility S 24,355.070 (4) Purchase price included the requirertw�rt of the Scller m constract an interconncei ro connect the purchaxed asxetx W the County .ryx[em. Net purehave price dCICRf1I11Cd 8.4 fO��ON4: Amount Cash at Cloxing S R73,670 Coxtoflntcrconncc[RcquircdoPScllcr (i7A,670) NetPurchavcPricc S 695,00�.0 " (5) Purcha9e prnding and undcr ncgotiatian bctwccn paRics; BRIOUIlI4 iCFlCCI I1G91 CYIIIf13I`�9 Of Y8IC4 PfICC I18RCA OIl ncgotiations with trenxaction anticipatcd a occur on or bcfore Dcccmbcr l, 2003. Table 6-1 Page 2 of 3 VUlege of Tequdh Comprnble Salm Anelyele • RdHng Flille SerWce Amr Comnenble Sake AnaMl� - AllocrHon of Adineted Porcha�e Price � Line Syxtcm Adjuntcd NNi741ityPlentinScrvicc(2) PcrccntofTorel AllocetcdPurc6axcPricc No. NamcofUtiliry(Shccr) NamcofPurchxncr 7 c PumheacPr.(1) Wetcr Wentcweta Total Wxtcr Wnatcwamr Wetcr Wantcaptcr I Flmida Citica WatcrComryairy-Poinciam Urilificn, Ina Flotide GovcrmncnRil Utiliry Aathaity W/S S 27,952,753 S 11,4R7,925 S 25,69R,OC3 $ 37,IR5,9RR SO.R9% 69.11% S R,hi4,605 S 19,31R,14R 2 Florida Ci6a+ Watcr Compeny - Seraxom S}retcm . Florida Ciovcmmcntal Utility Anthariry W/S 13,R49,120 3,56/,75b 9,224,9I9 12,792,fi75 27.A9% 72.11% 1,RC2,520 9,9R6,fi01 3 Spmcc Crock South Utilidae, inc. Floride Watcr Serviccx, Inc. W/S 7,RSb,4l8 3,RQ3,R21 3,776,259 7,SRO,ORO 50.18"/0 49.R2% 1,442,351 3,9I4,Ob7 4 FloridaCi6cxWnlcrCom�mtry•NortNSouthFt.Mycne i.ccCaunty W(S 142,R40,404 50,253,690 27,C�59,515 77,913,205 64.50°h 35.50"/e 92,{12,Ofi1 50,70$S44 5 FloridePublicUtilificxCompany CityofFcminditmTicech W 24,355,070 11,199,ISR - 11,199,ISR 100.00% O.00h 24,355,070 - b OrtcgnUtilityComrmny JEA(DuvalCounry) W/S 8,152,R90 I,R37,616 2,S1Q099 4,347,7I5 42.29% 57.73% 3,44C,227 4,70�,4C3 7 AquaSo�acc Utilitice, fnc. (Rotonde Syxtcm) Charlotto County W/S 23,050,650 6,OR3,OA8 SS30,R97 11,6I3,9A5 52.3R% 47.62°h I2,073,930 10,97C�,720 R UnitcdWatcrofFlorida,ina JF.A(DuvalCounty) W/S 232,030,500 65,472,77R 92,902,565 ISR,�95,343 4i.34% SR.(�'/0 95,921,409 11C,I09,091 9 IDSCO,i�. MartinCounty W/S 7R9,I77 147,743 205,102 352,R45 41.87"/e SR.13k 330,427 45R,T4fi Floride Wata Scrvicav, inc. - Fox Rnn Ldiani Hcightr 10 andFinhctman'eHavcn(bundicdpiachaxc) MarlinCounry W/S 2,350,000 ROA,012 744,117 I,552,129 52.Ofi% 47.94h 1,223,410 I,I2C�,590 Flmida Watcr Scrviccia, Inc. - Dcecon Hills, Woodmcrc, � I 1 Palm Vellcy, RcmingWn Fomnt (bundlcd purchaec) JEA (Duval County) W!S 25,000,000 8,32R,753 7,324,916 IS,fi53,C�li9 53.21% 4F.79"/0 13 11,69'l,500 12 FloridaWatcrScrviccx.PelmCoextSyatcm CityofPalmCoset W/S R2,772,934 40,IR3,812 42,2R5,349 R2,4b9,ib1 4R.T3"/e SI.27% 40,335,251 42,437,CAt3 !3 Florida Watcr SrniccF - Spring Hill Syxtcm Hcmando County W/S 35,574,025 16,266,695 12,752,2I2 29,OIR,907 56.00^/e 43.94% 19,942,79R IS,fi31,227 FloriAe Wetcr Scrviccx • Mamo telend xnd 14 MarcoShorcxSyxtcmx(bvndlcdpurchaxc) CityofMarcolsland W/S R5,313,147 SS,R24,C37 19Ci3b,6t3 75,4G1,250 73.48% 2C.02% b3,tl4,C�'i3 22,{9R,4R0 IS Florida Watcr Scrvicca - Citrue Florida C3ovcrntnrntal Utility Authotity W/S I6,OSR,937 18,SG2,59lr 8,715,AbC 27,27R,4fi2 C�,4.05% 31.95% 10,927,69R 5,13q639 16 Florida Watcr Scrvicrn � Lchigh Florids Oovcmmrntal Utility Avtharity W/S 34,503,51R 16,912,279 22 39,016,193 43.35^/0 56.65"/e I4,957,2R4 19,546.254 (I) AmouMx ehoa�n dcrivcd from Tabic 6-1, Pagc I of 3. (2) Baxcd on infmmation publinhcd by thc rcxpcGivc u[iliticx in thc Am�nal Rqartx nubmitted to thc rcgulxtory egc�y and othcr evailaWc finencisl information. Tabk 6-1 Pugc 3 oP 3 Villegc of Tcqucsta Comparubk Srles Malyais - Roiling Ailla Scrvlcc Arex Comoarabk Salca Anulvsis - Devclooment of [m�licd Purchesc Prfcc • ERC Basis Line Water System No. Name of Utiliry (Seller) Name ofPurchayer Alloc. Price ( l) ERCs (2) PricelERC Implicd Pricc Bsacd on ERCs (MeMr Equlvalcuts) Scrved 1 Florida Citie.v Water Company -Poinciann Utilities, inc. Florida Govemmentel Utility Autharity S 8,634,605 6,461 $ 1,336.42 2 Ftorida Citiea Water Campany - Sarasota Syntem FloridaGovernmenml Utility Autfiority $ 3,862,520 7,SR2 $ 509.43 3 Spmce Cccek South Utilities, Inc. Florida Water Secvices, lnc. $ 3,942,351 4,594 $ 858.15 4 Floridu Cities Water Company - North/South Ft. Myen Lee County $ 92,132,Ofi l 28,213 $ 3,2b5.59 5 Floricia Public Utilities Company City of Femindins Beach $ 24,355,070 8,216 $ 2,96438 6 Ortega Utility Cmnpany JEA (Duval County) $ 3,446,227 2,465 $ 1,398.0( 7 AquaSoum UtiliUes, Ina (Rotonda System) Charlotte County $ 12,073,930 3,6R5 $ 3,276.51 R United Wazer ofFlarida, Inc. 1EA (Duval County) $ 95,921,409 53,929 $ 1,778.68 9[BSCO,Inc. MartinCounty $ 330,427 352 $ 93R.71 10 Florida Wam Servicxs, inc. - Fox Run, Leliani Heigtus, and Fishecman's Haven (bundled purcha�e) Martin County $ 1,223,410 660 $ 1,853.65 11 Florida Wuter Servicey, inc. -Beacon Hills, Woodmere, 12 Palm Valley, Remis�ton Fareat (bundled pumhaye) JEA (Duval County) $ 13,302,500 6,42b $ 2,070.! 1 13 Florida Water Secvicea - Pahn Coest System City of Pahn Coast $ 40,335,251 27,464 $ 1,46R.1�(i 14 Flaridu Warer Service.v - Spring Hill System Hemando County $ 19,942,798 34,622 $ 576.02 Flarida Wnter Services - Marco islend and 15 Marco Shorea Syatems (bundled purchave) City of Mnrco tsland $ 63,! 14,1�1i3 16,160 $ 3,905,61 16 Florid+x Water Servicea - Citrus Florida Govemmental Udlity Autharity $ I0,92�,69R I 1,Cr4R $ 938.16 17 Flarida Water Setvices - Lehigh Florida Govemmentai Udlity Authoriry $ 14,957,2R4 l L,460 $ 1,305.17 18 Average Price per ERC $ 1,824.19 19 Roiling Hilly Service Area - ERCa (meter equivalenta) 46 20 implied Purchase Price per Utiliry System Companent $ 83,913 ( l) Amounts shown derived from Table (r l, Page 2 of 3. � (2) Based on informadon published by the respecdve utilities in the Mnual Reports submitted to the regulazory agency and other available financial informatioa SECTION 7 IMPACTS OF PURCHASE I80 301(6) The impacts of the purchase or sale on utilitv customers, both positive and ne�ative. There are numerous positive impacts on the utility customers resulting from the purchase of the Acquired Service Area water distribution system assets and are summarized as follows: 1. Public utility system ownership is expected to ensure better system management (performance of ongoing maintenance according to adopted standards, improved funds management [funding for future repairs and asset replacement], local rate regulation, etc.). The Acquired Service Area represents a very small operating business unit. Based on the relative size of both the JMWA system and the Acquired Service Area, it may be difficult for JIVIWA to fund needed improvements and meet system needs, generally resulting in deferred system maintenance. Under Village ownership, such maintenance and management policies will become part of the overall program of the Village's existing utility system. The regulatory agencies are limited in how far it can govern how a private or small non-profit utility is operated and maintained. If acquired, however, all standards can be upheld by the Village, ensuring better long-term service to the Acquired Service Area. 2. As a result of the acquisition of the Acquired Service Area by the Village, it is expected that the customers within the service area will become retail customers of the Village. It is expeeted that the Village's current retail rate structure will be applied to the customers of the Acquired Service Area once the purchase is effectuated. Upon acquisition, the customers of such service area may experience a rate decrease of approximately 10%. With regard to the existing customers of the Village, we do not anticipate that the purchase ofthe Acquired Service Area will cause the rates for the Village to be increased. 3. Management policies would be more beneficial to the service area under Village ownership. If the Village acquires the system, improvements can be made utilizing financing and the need for profit in rate collection eliminated. The Village aperates the utility as a separate enterprise fund, whereby the revenues of the utility fully support the operations of the utility (no general government ta.x monies are used for its purchase or operation). The negative impacts associated with the proposed service area acquisition are the following: l. The Village will be responsible for the maintaining the facilities that comprise the Acquired Service Area. Although no deficiencies are anticipated by the Village (reference Section 8 of this Briefing Document), any immediate improvements to such system will need to be funded by the Village which could have a short-term financial effect on utility operations. K:\1056-02\ Rpt\BrieIDoc\Briefmg Document.doc 7-1 SECTION 8 ADDITIONAL INVESTMENT REQUIRED 180.301(7) Any additional investment required and the ability and wzllin�ness of the Villa�e to make that investment. Currently the additional investment required for the Acquired Service Area is anticipated by the Village to be immaterial. Specifically, the only immediate capital requirements or needs identified is associated with the decomrnissioning of the master water meter, estimated at a cost of less than $1,000. It is expected that the current utility staff will perform the necessary improvements required to decommission the master water meter. Furthermore, it is currently anticipated that after the acquisition of the Acquired Service Area water distribution system, such utility service area will only warrant normal additional investments (e.g.- ongoing renewals and replacements associated with normal operations) in order for the assets purchased to reach the useful or expectant service life. K:\1056-02\ Rpt\BrieII�ce\Brie£mg Document.doc g-1 SECTION 9 ALTERNATIVES TO TAE PURCHASE I80 301(8) The alternatives to the purchase or sale and potential impact on utilitv customers if the purchase or sale is not made._ There are several alternatives to the purchase of the Acquired Service Area water distribution facilities by the Village. These include: 1. No purchase. 2. Purchase by an investor. 3. Purchase by a non-profit entity. If the Village does not acquire the Acquired Service Area water distribution facilities, the owner can either continue to operate the facilities or sell to another party. 1. The "no purchase" option results in the following: a) The Village would continue to provide bulk water service to JMWA which is anticipated to end on June l, 20Q7. JMWA would have to negotiate another bulk service agreement with a water provider (not necessarily the Village) or sell the utility to another party. b) Uncertainty regarding long-term issues such as the ability to effectively finance the cost of utility operations and ongoing renewals and replacements of system assets. c} Continuation of existing management and operations practices. 2. To the best of our knowledge, no outside investor has offered to buy the JMWA system in a fashion that would elicit a sale. The characteristics of the system do not adequately lend itself ta a purchase by a private entity. Issues such as i) the lack of service area growth (service area generally built-out); ii) the size and type of the customer base served; and iii) the inability to expand the service territory since the Town and Village essentially surrounds this service area generally would, in most likelihood, make this transaction unamactive to a private utility or outside investor. 3. The "purchase by a non-profit entity" option is not viable due to the fact that no non-profit entity has offered to buy the system. Additionally, the issues discussed above relative to reasons why the purchase of the JMWA system by a private investor appear to be unreasonable would also be applicable here. Additionally, the Town has negotiated the purchase of the JMWA facilities if the Acquired Service Area is purchased by the Village (simultaneous transaction). It is the Village's understanding that the Town desires to be the sole provider of water service for all customers located in the Town's corporate limits that is currently not served by another local government and the Town does not wish to purchase the Acquired Service Area assets (difficulty to provide service). As such, unless the Village purchases the Acquired Service Area, it is doubtful that another non-profit entity would purchase the JMWA system. K:\1056-02\ Rpt\BriefDoc\Briefmg Document.doe 9-1 SECTION 10 STATEMENT OF QUALITY SERVICE 180 301(9) The abilitv of the purchaser to provide and maintain hi�h-qualitv and cost-effective utilitv service whether the purchaser is the Village or the entit�purchasing the utilitv from the Villa e. In order to provide and maintain high quality and cost effective utility services, the Village will institute several utility management objectives. The Village, throughout the acquisition process, has engaged the professional services of a well recognized consulting engineering �rm to assist in technical areas. The Village currently operates a public water utility system in the area adjacent to the Acquired Service Area and has consistently complied with all regulations required by various regulatory agencies and covenants dictated by financing institutions. The Village has continuously provided and maintained high quality and cost effective utility services, and has kept rates for such service consistent for many years (only application of price index on cost of operations has been performed by the Village). In addition, a renewal and replacement fund exists for the ongoing replacement of the utility plant components within the system to ensure the system continues to provide the adopted level of service to its customers. Finally, the Village has consistently met the financial and rate covenants outlined in the Bond Resolution which authorized the issuance of utility revenue bonds for the funding of capital expenditures of the Village's water system. Based on the foregoing, the management of the Village's utility system is of the opinion that the Village will be able to continually provide and maintain high quality and cost effective utility service required to meet the level of service standards of the utility. K:\1056-02\ Rpt\BriefDoc\Briefmg Dacument.doc 1 �-1 SECTION 11 STATEMENT OF PUBLIC INTEREST Statement ofPublic Interest. Based upon the foregoing, the purchase of Acquired Service Area water distribution system is in the public interest and the Village has the experience and the financial ability to provide the highest quality of service to the customers. K:\1056-OZ\ Rpt\BriefDce\Briefmg Document.doc 11-1