Okaloosa County BOCC — September 1, 2015 — past Agenda Request from 02.05.2013

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: February 5, 2013 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Eglin AFB Utilities Privatization (UP) Proposal DEPARTMENT: Water and Sewer BCC DISTRICT: All STATEMENT OF ISSUE: OCWS is requesting BCC approval to submit a proposal for Eglin AFB Utilities Privatization (UP) and authorize the Chairman to sign the proposal/contract offer documents on behalf of Okaloosa County Water & Sewer. Eglin UP is for the potable water distribution system and the wastewater collection system. Please note that Eglin UP does not include wastewater treatment & disposal - OCWS has a separate, independent contract for the treatment & disposal of wastewater from Duke Field, Eglin Main Base, and Camp Rudder. A PowerPoint file is attached which gives a broad overview of Eglin AFB Utilities Privatization. BACKGROUND: In accordance with 10 U.S.C. §2688 - Utility Systems: Conveyance Authority, The Defense Energy Support Center (DESC) and/or Defense Logistics Agency (DLA) seek to identify and obtain information from responsible sources in connection with the privatization of the water distribution and wastewater collection systems at Eglin Air Force Base (AFB), Florida. Privatization is defined as the conveyance of a utility system to a municipal, private, regional, district, or cooperative utility company or other entity. The conveyance may - consist of all right, title, and interest of the United States in the utility system. The expected term of a contract is 50-years. ~ On June 7, 2011, the BCC gave direction to OCWS to pursue the above-mentioned Eglin AFB Utilities Privatization (UP), where OCWS would serve as the system owner (SO) and we would assemble a team, composed of a contract operations company and a program manager/engineering firm. On September 6, 2011, the BCC approved the selection of Environmental Services Group (ESG) for contract operations and The Constantine Group (TCG) for program management/engineering. This approval was based on a recommendation from a selection committee. Since then, OCWS has entered into Master Services Agreements (MSAS) with ESG and TCG. The purpose of these MSAs is to setup a contract that allows these two companies to work with OCWS to prepare the Eglin UP proposals after DLA issues the Request for Proposal (RFP). The proposals are very voluminous and complex - it is a tremendous amount of work to be done in a relatively short period of time. Four (4) volumes will be required for the water distribution system, and four (4) volumes will be required for the wastewater ~ collection system. In addition, two (2) more volumes are required to make a joint proposal for - both water and wastewater. All in all, the total proposal is about 12” thick. The MSAs for ESG and TCG stipulate that they will prepare the proposals for the County, at no cost to the County. If the County is successful and is selected for Eglin UP, ESG and TCG will enter into a 5-year contract with OCWS. There is a great amount of time and risk incurred by ESG and TCG, because there is the possibility that UP will not be awarded at all, due to the federal budget situation. It is also possible that the UP may be awarded to some other proposer. If/when the Eglin UP was to be awarded to the County, then ESG and TCG would still not be compensated for their work in putting together the proposal. At that time, the County would negotiate rates with ESG and TCG for a 5-year contract. If the County desires to utilize ESG and/or TCG beyond the 5-year period, the County has the option of nine 5-year renewals. Again, per the MSAs, under no scenario will ESG and/or TCG be compensated by the County for their work preparing the proposals. On Sept 28, 2012, DLA issued the RFP for privatization of the water distribution system and wastewater collection system of Eglin AFB. Since then, OCWS, ESG, TCG, and their sub- consultants - CDM-Smith, HDR, Veterans Consulting & Contracti