Okaloosa County BOCC — April 1, 2014

Agenda Okaloosa County Board of Commissioners Tuesday, April 1, 2014– 8:30 AM Crestview Courthouse I. Public Information Update 1. Public Information Officer PowerPoint. Page 5 II. County Administrator's Update III. Commissioner's Minute IV. Public Comments Related to Current Agenda V. Visitor 1. FL Dept. Of Health, Okaloosa requests Board consideration and approval of memorandum of agreements for emergency usage of Convention Center and Boardwalk. Page 12 VI. Public Hearing 1. Public Hearing on proposed issuance of Utilities System Revenue Bonds for Auburn Water System. Page 21 VII. Consent Agenda 1. [IS] Request approval of World Fiber Task Order 14 on Contract C10-1838-IS in the amount of $100,000.00. Page 128 2. [Airports] Request approval of Emerald Coast Aviation Amendment #6 for Emerald Coast Aviation to add provisions allowing it to mortgage its interest to obtain funding from a commercial lender. Page 132 3. [Airports] Request approval of Lease for Shoe Repair and Shine Concession at Northwest Florida Regional Airport. Page 137 4. [Airports] Request approval of the Verizon Wireless Site Access Agreement. Page 146 5. [Airports] Request approval of Hudson Group Amendment Number One. Page 157 Revised: 3/28/2014 9:42 AM Page 1 of 4 Regular Meeting (North) Agenda April 1, 2014 6. [Airports] Request approval of FDOT Grant Offer for Bob Sikes Aircraft Parking Apron. Page 168 7. [Airports] Request approval of an FDOT Grant Offer for Bob Sikes Airport Infrastructure. Page 199 8. [Airport] Request approval of the Request to Solicit Requests for Qualifications for the Eglin AFB ARFF Facility Construction Administration and the RFQ Review Committee. Page 230 9. [PW] Request approval of a Special Event Permit to utilize a portion of the Boardwalk parking lot on Okaloosa Island for a three day Blue Knights Motorcycle Rodeo to be held April 10 -12, 2014, sponsored by the Emerald Coast Blue Knights and the Okaloosa County Sheriff. Also consider a request by the sponsor for a waiver of the special event fees. Page 232 10. [PW] Request approval of a Special Event Permit to utilize County public beach on Okaloosa Island on Saturday, May 31, 2014 for a large wedding to be held from 6:00 to 8:00 p.m., sponsored by Island Sands Beach Weddings. Page 239 11. [PW] Request Approval of State Water Artificial Reef Permits. Page 241 12. [PW] Request approval of a Special Event Permit for Easter Sunrise Services to be held April 20, 2014 at John Beasley Park on Okaloosa Island, sponsored by The Lutheran Churches of the Emerald Coast. Also consider a request by the sponsor for a waiver of the special event fees. Page 353 13. [PW] Request Approval of Task Order TO46 Amendment - SCS Engineers. Page 356 14. [PW] Request approval of a Special Event Permit for an Easter Egg Hunt to be held April 19, 2014 at Ross Marler Park on Okaloosa Island, sponsored by Impact Life Church. Page 364 15. [PW] Request approval of a Special Event Permit to utilize County public beach at John Beasley Park on Saturday, May 10, 2014 for a large wedding to be held from 4:00 to 6:00 p.m. page 367 16. [PW] Request approval of and authorize the Chairman to execute a contract renewal with the Florida Department of Corrections for the use of inmate labor for the Roads Division. Page 369 17. [FM] Request BCC approval of the recommended members for the Selection Committee for the CM for the Sheriff's New Shalimar Building. Dist: all. Page 383 18. [Non-BCC] Public Defender's Office requests approval for transfer from reserve IT funds. Page 385 19. [Non-BCC] Request approval of and authorize the Chairman to execute a Proclamation declaring April 3, 2014 as "Exchange Club Child Abuse Prevention Day" in Okaloosa County. Page 398 Okaloosa County Board of Commissioners Page 2 Printed 3/28/2014 Regular Meeting (North) Agenda April 1, 2014 20. [Non-BCC] Request approval of Sheriff LETF requests for various education and crime reduction activities. Page 400 21. [RM] Request approval for Payment of actuarial services for GASB 45 Study. Page 415 22. [PS] Request authorization to begin contract coordination with Advanced Data Processing, Inc for EMS Billing Services. Page 417 23. [CAO] Approval of Budget Resolutions & Transfers. Page 419 24. [PUR] Seeking Board approval to utilize the State of Florida Contract for the purchase of one (1) 2014 85 HP Tractor from Triple D Equipment, Inc. . Page 424 25. [PUR] Seeking Board Approval to Purchase One (1) Front End Loader (4.75cy) RFB #34-14 for Public Works. Page 428 26. [PUR] Request approval from the Board to solicit a RFQ for Information Technology Services. Page 432 27. [PUR]Request approval to award Bid # RFB HD 32-14 for Minor Repairs and Additions to the Health Department Modular Building and request authorization for the Chairman to sign the contract. Page 434 28. [Fleet] Request approval for payment to Comdata and Mobark. Page 475 29. [TDD] Request approval of contracts with Horizons for 2013 & 2014 Burning Up the Beaches car shows. Page 487 VIII. Department Business A. John Hofstad/Public Works 1. Request approval of request submitted by Nature Lake of NW Florida, LLC for Nature Lake Phase 1 subdivision to enter into the 18-month warranty period. District: 1. Page 514 2. Request approval of a TRIP Agreement with FDOT for improvements to PJ Adams Parkway. Page 537 B. Ed Schroeder/Tourist Development 1. Request approval of revised Peter Mayer task order 112 for online banner ads and print media. Page 576 C. Kay Godwin/Human Resources Okaloosa County Board of Commissioners Page 3 Printed 3/28/2014 Regular Meeting (North) Agenda April 1, 2014 1. Request Approval of Recommended Policy Additions and Changes. Page 586 D. Zan Fedorak/Purchasing 1. Purchasing seeks authorization from the Board to auction ceiling tiles from the Shalimar Annex. Page 596 E. Elliot Kampert/Growth Management 1. Request approval of the final plat for Nature Lake Phase I. Page 597 F. Jeff Littrell/Water & Sewer 1. Request approval of and authorize the Chairman to execute Task Order 70 Revision 1 with Constantine Engineering for Professional Engineering Design and Construction Services for the East County Repump Station Project. District: 1 & 5. Page 609 2. Request approval of and authorize the Chairman to execute an agreement with Waste Management of Leon County, Inc. for the County to receive, treat, and dispose of landfill leachate. District: 3. Page 626 G. Donald Turner/Facility Maintenance 1. Request BCC approval of the negotiated contract for Design Services for the new Sheriff's Building in Shalimar. Dist: all. Page 642 IX. New Business 1. [CAO] Request consideration and staff direction concerning approval of Fiscal Year 2014 4th Quarter Calendars. District: All. Page 720 2. [BCC] Request consideration and approval of resolution addressing key elements of Robert's Rules of Order for BCC meeting decorum. Page 724 X. Public Comments Okaloosa County adheres to the Americans with Disabilities Act and will make reasonable accommodations for access to this meeting upon request. Please call the County Administrator’s Office at (850) 651-7515 to make a request. For Hearing Impaired, Dial 1-800-955-8771 (TDD), and 1-800-955-8770 (Voice). Requests must be received at least 48 hours in advance of the meeting in order for Okaloosa County to provide the requested service. Okaloosa County Board of Commissioners Page 4 Printed 3/28/2014  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Kathy Newby, Public Information Officer SUBJECT: Public Information Officer Presentation The Public Information Officer's PowerPoint presentation is attached. Packet Pg. 5  www.okaloosafl.com Please silence all pagers & cell phones for Board of County Commission Meeting. All visitors must speak into microphone for live broadcast & give name & address. Packet Pg. 6  Friends, family members, co-workers and employers to nominate the special women in our county who enrich their lives.  The nomination form and more information can be found at http://www.occsw.org/wallofhonor.htm.  For more information and a nomination form, contact Tammy Magee at 850.496.1142 or woh@occsw.org. Packet Pg. 7 The Okaloosa County General Aviation Airports (CEW &DTS) provide a combined total Annual Economic Impact of $542M. Direct Impacts: $5.4M Indirect Impacts: $2.3M Multiplier Impacts: $6.4M Total Employment: 750 Jobs Total Economic Activity: $502M Direct Impacts: $10.8M Indirect Impacts: $11.7M Multiplier Impacts: $17.5M Total Employment: 395 jobs Total Economic Activity: $40M Packet Pg. 8 •62 percent of American households own a pet; many travel with their family •Good for Therapy Dogs, Wounded Warrior Service Dogs and all travelers •No bones about it, the Airport welcomes the increasing number of furry passengers who visit the airport and we’re sure the dog park will help ‘keep those tails a waggin.’ L-R: Wounded Warrior with service animal; Angie & Dozer the Therapy Dog; Past Commissioner Elaine Tucker’s dog Rambo travels with her all the time from VPS! Packet Pg. 9 Packet Pg. 10 Packet Pg. 11  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board SUBJECT: Visitor - FL Dept. of Health, Okaloosa Florida Department of Health in Okaloosa County requests to present memorandum of agreements (MOA) to the Board for consideration and approval. These MOA pertains to use the Emerald Coast Convention Center and the Boardwalk on Okaloosa Island during public health emergencies. The attached documents have been approved and signed by the FDOH - Okaloosa legal team and the Director. Packet Pg. 12 Packet Pg. 13 Packet Pg. 14 Packet Pg. 15 Packet Pg. 16 Packet Pg. 17 Packet Pg. 18 Packet Pg. 19 Packet Pg. 20  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Rick Owen SUBJECT: Public Hearing - Issuance of Utilities System Revenuel Bonds DEPARTMENT: County Administrator BCC DISTRICT: STATEMENT OF ISSUE: Auburn Water District requests Board assistance in obtaining industrial bonds for Auburn Water Systems. BACKGROUND: Mr. Jason Grubbs from the Frazier Lanier Company presented a proposal to the Board at the February 18, 2014 BCC meeting for assistance in obtaining utility system revenue bonds for Auburn Water System. Along with approval of an inducement resolution, the Board gave direction to advertise a public hearing. A resolution approving the issuance of Utilities System Revenue Bonds is attached. OPTIONS: Approve/Disapprove the resolution. RECOMMENDATIONS: Staff recommends approval of the resolution. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 21  NGN Draft No.2 3/26/2014 019.14 BOND TRUST INDENTURE BETWEEN OKALOOSA COUNTY, FLORIDA, as Issuer AND __________________________, as Bond Trustee DATED AS OF APRIL 1, 2014 $___________ Okaloosa County, Florida Utilities System Revenue Bonds, Series 2014 (Auburn Water System, Inc. Project) Packet Pg. 22  TABLE OF CONTENTS Page ARTICLE I DEFINITIONS SECTION 1.1. DEFINITIONS ............................................................................................4 ARTICLE II THE BONDS SECTION 2.1. AUTHORIZED AMOUNT OF BONDS ..................................................14 SECTION 2.2. ISSUANCE OF SERIES 2014 BONDS; ADDITIONAL BONDS ..........14 SECTION 2.3. EXECUTION; LIMITED OBLIGATION; NO LIABILITY OF STATE .................................................................................................16 SECTION 2.4. AUTHENTICATION................................................................................16 SECTION 2.5. FORM OF BONDS AND TEMPORARY BONDS .................................17 SECTION 2.6. DELIVERY OF SERIES 2014 BONDS ...................................................17 SECTION 2.7. MUTILATED, LOST, STOLEN OR DESTROYED BONDS ................18 SECTION 2.8. TRANSFER AND EXCHANGE OF BONDS; PERSONS TREATED AS OWNERS ...................................................................18 SECTION 2.9. BOOK-ENTRY ONLY SYSTEM FOR THE BONDS ............................19 SECTION 2.10. SUCCESSOR SECURITIES DEPOSITORY; TRANSFERS OUTSIDE BOOK-ENTRY ONLY SYSTEM ....................................20 SECTION 2.11. PAYMENTS AND NOTICES TO CEDE & CO .....................................20 ARTICLE III APPLICATION OF BOND PROCEEDS AND REQUIRED FUND DEPOSITS SECTION 3.1. EXPENSE FUND......................................................................................21 SECTION 3.2. PROJECT FUND ......................................................................................21 SECTION 3.3. DEPOSIT OF BOND PROCEEDS...........................................................22 ARTICLE IV REVENUES AND FUNDS SECTION 4.1. SOURCE OF PAYMENT OF BONDS ....................................................24 SECTION 4.2. BOND SINKING FUND ..........................................................................24 SECTION 4.3. REDEMPTION FUND .............................................................................24 SECTION 4.4. INVESTMENT OF FUNDS; INCOME ...................................................24 SECTION 4.5. TRUST FUNDS ........................................................................................25 SECTION 4.6. EXCLUDED FUNDS; TRANSFERS TO REBATE FUND....................25 i Packet Pg. 23  ARTICLE V REDEMPTION OF BONDS SECTION 5.1. MANDATORY SINKING FUND REDEMPTIONS WITHOUT PREMIUM...........................................................................................26 SECTION 5.2. OPTIONAL REDEMPTION ....................................................................27 SECTION 5.3. PURCHASE IN LIEU OF REDEMPTION ..............................................28 SECTION 5.4. NOTICE OF REDEMPTION; CONDITIONAL NOTICE ......................28 SECTION 5.5. METHOD OF SELECTING BONDS IN CASE OF PARTIAL REDEMPTION....................................................................................29 SECTION 5.6. BONDS DUE AND PAYABLE ON REDEMPTION DATE; INTEREST CEASES TO ACCRUE ...................................................29 SECTION 5.7. CANCELLATION ....................................................................................29 ARTICLE VI GENERAL COVENANTS SECTION 6.1. PAYMENT OF PRINCIPAL, PREMIUM, IF ANY, AND INTEREST...........................................................................................30 SECTION 6.2. PERFORMANCE OF COVENANTS; LEGAL AUTHORIZATION.............................................................................30 SECTION 6.3. OWNERSHIP; INSTRUMENTS OF FURTHER ASSURANCE ...........30 SECTION 6.4. RECORDING AND FILING ....................................................................31 SECTION 6.5. BOOKS AND RECORDS ........................................................................31 SECTION 6.6. LIST OF BONDHOLDERS......................................................................31 SECTION 6.7. RIGHTS UNDER THE LOAN AGREEMENT .......................................31 SECTION 6.8. DESIGNATION OF ADDITIONAL PAYING AGENTS .......................31 SECTION 6.9. ARBITRAGE; COMPLIANCE WITH TAX EXEMPTION AGREEMENT.....................................................................................31 ARTICLE VII EVENTS OF DEFAULT AND REMEDIES SECTION 7.1. EVENTS OF DEFAULT ..........................................................................33 SECTION 7.2. ACCELERATION ....................................................................................34 SECTION 7.3. REMEDIES; RIGHTS OF BONDHOLDERS..........................................35 SECTION 7.4. DIRECTION OF PROCEEDINGS BY HOLDERS.................................35 SECTION 7.5. APPOINTMENT OF RECEIVERS ..........................................................36 SECTION 7.6. APPLICATION OF MONEYS.................................................................36 SECTION 7.7. REMEDIES VESTED IN BOND TRUSTEE...........................................37 SECTION 7.8. RIGHTS AND REMEDIES OF BONDHOLDERS .................................37 SECTION 7.9. TERMINATION OF PROCEEDINGS.....................................................38 SECTION 7.10. WAIVER OF EVENTS OF DEFAULT ...................................................38 SECTION 7.11. BORROWER'S RIGHTS OF POSSESSION AND USE OF PROPERTY.........................................................................................39 ii Packet Pg. 24 SECTION 7.12. WAIVER OF REDEMPTION; EFFECT OF SALE OF TRUST ESTATE...............................................................................................39 SECTION 7.13. NOTICE OF DEFAULT. ..........................................................................39 ARTICLE VIII THE BOND TRUSTEE SECTION 8.1. ACCEPTANCE OF THE TRUSTS ..........................................................40 SECTION 8.2. FEES, CHARGES AND EXPENSES OF BOND TRUSTEE AND ANY ADDITIONAL PAYING AGENT ............................................42 SECTION 8.3. NOTICE TO THE ISSUER AND BONDHOLDERS IF DEFAULT OCCURS ..........................................................................43 SECTION 8.4. INTERVENTION BY BOND TRUSTEE ................................................43 SECTION 8.5. SUCCESSOR BOND TRUSTEE .............................................................43 SECTION 8.6. BOND TRUSTEE REQUIRED; ELIGIBILITY ......................................43 SECTION 8.7. RESIGNATION BY THE BOND TRUSTEE ..........................................44 SECTION 8.8. REMOVAL OF THE BOND TRUSTEE .................................................44 SECTION 8.9. APPOINTMENT OF SUCCESSOR BOND TRUSTEE BY THE BONDHOLDERS; TEMPORARY BOND TRUSTEE ......................44 SECTION 8.10. CONCERNING ANY SUCCESSOR BOND TRUSTEES ......................45 SECTION 8.11. BOND TRUSTEE PROTECTED IN RELYING UPON RESOLUTION, ETC...........................................................................45 SECTION 8.12. SUCCESSOR BOND TRUSTEE AS BOND TRUSTEE OF FUNDS, PAYING AGENT AND BOND REGISTRAR ...................45 SECTION 8.13. PAYING AGENTS; APPOINTMENT AND ACCEPTANCE OF DUTIES; REMOVAL .........................................................................46 ARTICLE IX SUPPLEMENTAL INDENTURES SECTION 9.1. SUPPLEMENTAL INDENTURES NOT REQUIRING CONSENT OF BONDHOLDERS ......................................................47 SECTION 9.2. SUPPLEMENTAL INDENTURES REQUIRING CONSENT OF BONDHOLDERS................................................................................48 ARTICLE X AMENDMENTS, ETC. TO BORROWER'S DOCUMENTS SECTION 10.1. AMENDMENTS TO THE BORROWER'S DOCUMENTS NOT REQUIRING CONSENT ....................................................................50 SECTION 10.2. AMENDMENTS TO THE BORROWER'S DOCUMENTS REQUIRING CONSENT OF BONDHOLDERS ...............................50 iii Packet Pg. 25  ARTICLE XI SATISFACTION OF THIS BOND INDENTURE SECTION 11.1. DEFEASANCE .........................................................................................52 SECTION 11.2. LIABILITY OF ISSUER NOT DISCHARGED ......................................53 SECTION 11.3. SELECTION OF DEFEASED BONDS ...................................................53 SECTION 11.4. WHEN REFUNDING IS NOT PERMITTED..........................................53 ARTICLE XII MANNER OF EVIDENCING OWNERSHIP OF BONDS SECTION 12.1. PROOF OF OWNERSHIP........................................................................54 ARTICLE XIII MISCELLANEOUS SECTION 13.1. LIMITATION OF RIGHTS ......................................................................55 SECTION 13.2. UNCLAIMED MONEYS .........................................................................55 SECTION 13.3. SEVERABILITY ......................................................................................55 SECTION 13.4. NOTICES ..................................................................................................56 SECTION 13.5. ADDITIONAL NOTICES TO RATING AGENCIES .............................56 SECTION 13.6. COUNTERPARTS....................................................................................57 SECTION 13.7. APPLICABLE LAW.................................................................................57 SECTION 13.8. IMMUNITY OF OFFICERS, EMPLOYEES AND MEMBERS OF ISSUER..........................................................................................57 EXHIBIT A FORM OF BOND EXHIBIT B FORM OF REQUISITION FOR EXPENSE FUND AND PROJECT FUND iv Packet Pg. 26  BOND TRUST INDENTURE THIS BOND TRUST INDENTURE ("Bond Indenture") is dated as of April 1, 2014 and is between OKALOOSA COUNTY, FLORIDA, as issuer, and _________________________, a state banking corporation organized and existing under the laws of the State of ________, as bond trustee (the "Bond Trustee"). PRELIMINARY STATEMENT Okaloosa County, Florida, a political subdivision of the State of Florida (together with any successors, the "Issuer") has authorized the issuance of a series of revenue bonds consisting of $________ initial aggregate principal amount of its tax exempt Utilities System Revenue Bonds, Series 2014A (Auburn Water System, Inc. Project) (the "Series 2014A Bonds") and $________ initial aggregate principal amount of its taxable Utilities System Revenue Bonds, Series 2014B (Auburn Water System, Inc. Project) (the "Series 2014B Bonds," collectively, the "Series 2014 Bonds"). The Series 2014 Bonds, together with any Additional Bonds issued under this Bond Indenture, are referred to herein as the "Bonds." The Bonds will be issued pursuant to Chapter 159, Part II, Florida Statutes, as amended, and other applicable provisions of law (the "Act"), and this Bond Indenture. The proceeds derived from the sale of the Bonds will be loaned to Auburn Water System, Inc., a Florida non-profit corporation (together with its successors and assigns and any surviving, resulting or transferee corporation, the "Borrower"), pursuant to a Loan Agreement dated as of April 1, 2014 between the Borrower and the Issuer, and assigned by the Issuer to the Bond Trustee (as amended from time to time, the "Loan Agreement"). The Series 2014 Bonds are being issued to (i) finance all or a portion of the costs of acquiring, constructing, improving and equipping of improvements to the water utility system operated by the Borrower, (ii) refund certain outstanding indebtedness of the Borrower, and (iii) pay certain costs associated with the issuance of the Series 2014 Bonds. NOW, THEREFORE, THIS BOND INDENTURE WITNESSETH: That the Issuer in consideration of the premises and of the purchase of the Bonds and of other good and lawful consideration, the receipt of which is hereby acknowledged, and to secure the payment of the principal of, premium, if any, and interest on the Bonds and the performance and observance of all of the covenants and conditions herein and therein contained, has executed and delivered this Bond Indenture and has conveyed, granted, assigned, transferred, pledged, set over and confirmed and granted a security interest in and by these presents does hereby convey, grant, assign, transfer, pledge, set over and confirm and grant a security interest in, unto the Bond Trustee, its successor or successors and its or their assigns forever, with power of sale, all and singular the property, real and personal, hereinafter described (said property being herein sometimes referred to as the "trust estate") to wit: 1 Packet Pg. 27  GRANTING CLAUSES DIVISION I All right, title and interest of the Issuer in and to the funds created hereunder and all amounts held therein, including investment earnings; DIVISION II All right, title and interest of the Issuer in and to the Loan Agreement and the amounts payable to the Issuer under the Loan Agreement (excluding Unassigned Rights); DIVISION III Any and all other property of every kind and nature from time to time hereafter, by delivery or by writing of any kind, conveyed, pledged, assigned or transferred as and for additional security hereunder by the Issuer or the Borrower or by anyone in their behalf to the Bond Trustee, including, without limitation, any funds held by the Bond Trustee in any of the funds established hereunder as security for the Bonds; EXCEPTED PROPERTY There is, however, expressly excepted and excluded from the trust estate moneys held by the Bond Trustee in the Rebate Fund established pursuant to the Tax Exemption Agreement; TO HAVE AND TO HOLD, all and singular, the properties and the rights and privileges hereby conveyed, assigned and pledged by the Issuer or intended so to be, unto the Bond Trustee and its successors and assigns forever, in trust, nevertheless, with power of sale for the equal and pro rata benefit and security of each and every holder of the Bonds issued and to be issued hereunder, without preference, priority or distinction as to participation in the lien, benefit and protection hereof of one Bond over or from the others, by reason of priority in the issue or negotiation or maturity thereof, or for any other reason whatsoever, except as herein otherwise expressly provided, so that each and all of such Bonds shall have the same right, lien and privilege under this Bond Indenture and shall be equally secured hereby with the same effect as if the same had all been made, issued and negotiated simultaneously with the delivery hereof and were expressed to mature on one and the same date; PROVIDED, NEVERTHELESS, and these presents are upon the express condition, that if the Issuer or its successors or assigns shall well and truly pay or cause to be paid the principal of the Bonds with interest, according to the provisions set forth in such Bonds and each of them or shall provide for the payment or redemption of such Bonds by depositing or causing to be deposited with the Bond Trustee the entire amount of funds or securities required for payment or redemption thereof when and as authorized by the provisions hereof, and shall also pay or cause to be paid all other sums payable hereunder by the Issuer, then these presents and the estate and rights hereby granted shall cease, determine and become void, and thereupon the Bond Trustee, on payment of its lawful charges and disbursements then unpaid, on demand of the Issuer and upon the payment of the costs and expenses thereof, shall duly execute, 2 Packet Pg. 28 acknowledge and deliver to the Issuer such instruments of satisfaction or release as may be necessary or proper to discharge this Bond Indenture, including if appropriate any required discharge of record, and if necessary, shall grant, reassign and deliver to the Issuer, its successors or assigns, all and singular the property, rights, privileges and interests by it hereby granted, conveyed and assigned, and all substitutes therefor, or any part thereof, not previously disposed of or released as herein provided; otherwise this Bond Indenture shall be and remain in full force; AND IT IS HEREBY COVENANTED, DECLARED AND AGREED by and between the parties hereto that all Bonds are to be issued, authenticated and delivered, and that all the trust estate is to be held and applied, subject to the further covenants, conditions, releases, uses and trusts hereinafter set forth, and the Issuer, for itself and its successors, does hereby covenant and agree to and with the Bond Trustee and its respective successors in said trust, for the benefit of those who shall own the Bonds, or any of them, as follows: 3 Packet Pg. 29  ARTICLE I DEFINITIONS SECTION 1.1. DEFINITIONS. To the extent not defined herein, the terms used in this Bond Indenture shall have the same meanings as set forth in the Loan Agreement. All accounting terms not otherwise defined in the Loan Agreement or herein have the meanings assigned to them in accordance with generally accepted accounting principles then in effect. In addition to the words and terms elsewhere defined in this Bond Indenture or the Loan Agreement, the following words and terms as used in this Bond Indenture shall have the following meanings unless the context or use indicates another or different meaning or intent: "Act" has the meaning specified in the Preliminary Statement to this Bond Indenture. "Additional Bonds" means any bonds secured on parity with the Series 2014 Bonds issued pursuant to Section 2.2 hereof. "Authorized Denomination" means $5,000 and any integral multiple in excess thereof. "Bond Counsel" means Nabors, Giblin & Nickerson, P.A., or any other nationally recognized municipal bond counsel acceptable to the Issuer. "Bond Indenture" means this Bond Trust Indenture dated as of April 1, 2014, including the Exhibits hereto, from the Issuer to the Bond Trustee, as it may from time to time be amended or supplemented. "Bond Register" means the registration books of the Issuer kept by the Bond Trustee to evidence the registration and transfer of Bonds. "Bond Registrar" means the Bond Trustee as keeper of the Bond Register. "Bond Sinking Fund" means the fund by that name created in Section 4.4 hereof. "Bond Trustee" means ___________________, or any successor trustee under this Bond Indenture. "Bondholder," "holder" and "owner of the Bonds" means any registered owner of any Bond. "Bonds" means, collectively, the Series 2014 Bonds and any Additional Bonds. "Borrower" has the meaning specified in the Preliminary Statement to this Bond Indenture. "Borrower Bond" means any Bond which is registered in the name of the Borrower. "Borrower's Closing Certificate" means the Officer's Certificate of the Borrower dated the date of and delivered on the Closing Date. 4 Packet Pg. 30  "Borrower's Documents" means the Loan Agreement, the Official Statement, the Tax Exemption Agreement and all other documents to which the Borrower is a party related to the issuance of the Bonds. "Business Day" means a day which is not (a) a Saturday, Sunday or legal holiday or any other day on which banking institutions in the State or the State of New York are authorized by law to close, or (b) a day on which the New York Stock Exchange is closed. "Clerk" means the Clerk of the Circuit Court, ex officio Clerk of the Board of County Commissioners of Okaloosa County, Florida, as his or her designee. "Closing Date" means April ___, 2014, the date of the initial issuance and delivery of the Bonds. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to a Section of the Code herein shall be deemed to include the United States Treasury Regulations, including temporary or proposed regulations relating to such Section which are applicable to the Bonds or the use of the proceeds thereof. "Connection Fees" means the fees and charges, if any, which relate to acquiring, constructing, equipping or expanding the capacity of the System for the purpose of paying or reimbursing the equitable share of the capital cost relating to such acquisition, construction, expansion or equipping of capacity or expansion thereof in order to serve new users of the System, to the extent the same are lawfully levied, collected and pledged. "Connection Fees" include those fees and charges currently known under Florida law as "impact fees" but shall not include fees and charges imposed for the cost of physically hooking up or connecting to the System. "Consulting Engineers" shall mean any engineering firm of reputation for skill and experience with respect to the construction, maintenance and operation of facilities similar to the facilities that make up all or a portion of the System, which is duly licensed under the laws of the State of Florida and designated by the Borrower to perform the duties of the Consulting Engineers under the provisions hereof and of the Loan Agreement. "Debt Service" shall mean, at any time, the aggregate amount in the then applicable period of time of (1) interest required to be paid on the Outstanding Bonds during such period of time, except to the extent that such interest is to be paid from deposits in the Bond Sinking Fund or Project Fund made from Bond proceeds for such purpose, (2) principal of Outstanding Bonds maturing in such period of time, and (3) the Bond Sinking Fund redemption requirements scheduled to be paid during such period of time. "Debt Service Requirement" shall mean the aggregate amount of Debt Service on the Bonds for each applicable Fiscal Year. "Defaulted Interest" means interest on any Bond which is payable but not duly paid on the date due. "DTC" means The Depository Trust Company. 5 Packet Pg. 31  "DTC Participant" means those broker dealers, banks and other financial institutions reflected on the books of DTC. "Expense Fund" means the fund by that name created in Section 3.1 hereof. "Fitch" means Fitch Inc. d/b/a Fitch Ratings, its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, "Fitch" shall be deemed to refer to any other nationally recognized securities rating agency which has been designated by the Borrower by notice to the Issuer and the Bond Trustee. "Governing Body" means the board of directors, the board of trustees or similar group in which the right to exercise the powers of corporate directors or trustees is vested. "Government Obligations" means (a) United States Government Obligations, or (b) evidences of a direct ownership in future interest or principal payments on United States Government Obligations, which United States Government Obligations are held in book-entry form on the books of the Department of the Treasury. "Gross Revenues" means all accounts, receipts, revenues, payments, income and other moneys received by or on behalf of the Borrower from any source, whether or not in connection with the ownership or the operation of all or any part of the System, including, without limitation, all operating and nonoperating revenues, and all rights to receive the same whether in the form of accounts, accounts receivable, contract rights, chattel paper, instruments, general intangibles of the Borrower and the proceeds thereof, the proceeds of any insurance coverage on and condemnation awards in respect of the System or any gain on the sale or other Borrower disposition of property, all deposit accounts, securities accounts and securities entitlements; all of the foregoing, whether now existing or hereafter coming into existence and whether now owned or held or hereafter acquired by the Borrower; and including all gifts, grants, bequests, donations and contributions, except those heretofore or hereafter made, designated at the time of making by the donor or maker as being for certain specified purposes inconsistent with the application thereof to the payments due from the Borrower under the Loan Agreement and except any income derived therefrom to the extent required by such designation or restriction. Gross Revenues shall not include Connection Fees or proceeds of Bonds or other Indebtedness. "Immediate Notice" means notice by telephone, telex, telecopier or electronic mail to such telephone number, telex number or telecopier number or electronic mail address as the addressee shall have directed in writing, promptly followed by written notice by first class mail postage prepaid to such address as the addressee shall have directed in writing. "Independent Counsel" means an attorney duly admitted to practice law before the highest court of any state and, without limitation, may include independent legal counsel for the Issuer, the Borrower or the Bond Trustee. "Interest Payment Date" means ________ 1 and ________ 1 of each year, commencing _________ 1, 2014. 6 Packet Pg. 32  "Investment Earnings" shall mean all income and earnings derived from the investment of moneys in the funds and accounts established hereunder, other than the Rebate Fund. "Issuer" has the meaning specified in the Preliminary Statement to this Bond Indenture. "Issuer's Expenses" means the reasonable and necessary fees and expenses incurred by the Issuer with respect to this Bond Indenture, the Loan Agreement, the Purchase Contract, the Bonds or any property financed or refinanced with the proceeds of the Bonds, including any advances made by the Issuer, plus interest on those advances as provided by any of the applicable documents to which the Borrower is a party and those for any legal, accounting, financial or other experts reasonably retained by the Issuer, as well as any recording expenses, trustee's acceptance fees, escrow and title insurance costs, legal fees, bank fees, bond insurance and rating agency fees, printing expenses and other fees and fair and customary expenses incurred or to be incurred by or on behalf of the Issuer in connection with or as an incident to the issuance and sale of the Bonds. "Loan Agreement" has the meaning specified in the Preliminary Statement of this Bond Indenture. "Maturity Date" means the maturity date for each Bond assigned a specific serial or different term maturity date pursuant to Section 2.2 hereof. "Moody's" means Moody's Investors Service, Inc., a corporation organized and existing under the laws of the State of Delaware, its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, "Moody's" shall be deemed to refer to any other nationally recognized securities rating agency which has been designated by the Borrower by notice to the Bond Trustee and the Issuer. "Net Revenues" means Gross Revenues less Operating Expenses, each for the applicable period measured. "Officer's Certificate" means a certificate signed, in the case of a certificate delivered by a corporation, by the president, any vice president or any other officer authorized to sign by resolution of the Governing Body of such corporation or, in the case of a certificate delivered by any other Person, the chief executive, chief financial officer or general counsel of such other Person, in either case whose authority to execute such Officer's Certificate shall be evidenced to the satisfaction of the Bond Trustee. "Official Statement" means the Official Statement dated _________, 2014, prepared in connection with the issuance and sale of the Series 2014 Bonds. "Operating Expenses" means all expenses of the Borrower relating to the operation of the System, including, but not limited to, expenses and fees of the Bond Trustee, but excluding items that do not require the expenditure of cash (depreciation, amortization, etc.). "Opinion of Bond Counsel" means a written opinion of Bond Counsel in form and substance acceptable to the Issuer and the Bond Trustee, which opinion may be based on a ruling or rulings of the Internal Revenue Service. 7 Packet Pg. 33  "Outstanding Bonds" or "Bonds Outstanding" means all Bonds which have been duly authenticated and delivered by the Bond Trustee under this Bond Indenture, except: (a) Bonds canceled after purchase in the open market or because of payment at or redemption prior to maturity; (b) Bonds for the payment or redemption of which cash or Government Obligations shall have been theretofore deposited with the Bond Trustee (whether upon or prior to the maturity or redemption date of any such Bonds) in accordance with Article XI of this Bond Indenture; provided that if such Bonds are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given or arrangements satisfactory to the Bond Trustee shall have been made therefor, or waiver of such notice satisfactory in form to the Bond Trustee shall have been filed with the Bond Trustee; (c) Bonds in lieu of which others have been authenticated under Section 2.7 or 2.8 of this Bond Indenture; and (d) for the purpose of all consents, approvals, waivers and notices required to be obtained or given under this Bond Indenture, Bonds held or owned by the Borrower or any Person controlling, controlled by or under common control with the Borrower to the extent provided in Section 12.1 hereof. "Outstanding Parity Indebtedness" means the mortgage loan previously entered into by the Borrower dated May 24, 1995. "Parity Indebtedness" shall mean the Outstanding Parity Indebtedness and any Additional Indebtedness authorized to be issued pursuant to Section 5.12 of the Loan Agreement. "Paying Agent" means the Bond Trustee and the bank or banks, if any, designated pursuant to this Bond Indenture to receive and disburse the principal of and interest on the Bonds. "Person" means any natural person, firm, joint venture, association, partnership, business trust, corporation, limited liability company, public body, agency or political subdivision thereof or any other similar entity. "Principal Payment Date" means the date on which a principal payment, whether at maturity or pursuant to a mandatory sinking fund amortization, is due on the Bonds. "Project" means all personal and real property to be financed in whole or in part, and whether directly or indirectly, with the proceeds of the Bonds. "Project Fund" means the fund by that name created in Section 3.2 hereof. "Purchase Contract" means the Bond Purchase Agreement dated _________, 2014, among the Underwriter, the Issuer and the Borrower, providing for the sale of the Bonds. 8 Packet Pg. 34  "Qualified Investments" means any of the following, if and to the extent that the same are at the time legal for investment of funds of the Issuer: A. Direct obligations of the United States of America (including obligations issued or held in book-entry form on the books of the Department of the Treasury, and CATS and TIGRS) or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America. B. Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following federal agencies and provided such obligations are backed by the full faith and credit of the United States of America (stripped securities are only permitted if they have been stripped by the agency itself): 1. U.S. Export-Import Bank (Eximbank) Direct obligations or fully guaranteed certificates of beneficial ownership 2. Farmers Home Administration (FmHA) Certificates of beneficial ownership 3. Federal Financing Bank 4. Federal Housing Administration Debentures (FHA) 5. General Services Administration Participation certificates 6. Government National Mortgage Association (GNMA or "Ginnie Mae") GNMA - guaranteed mortgage-backed bonds GNMA - guaranteed pass-through obligations 7. U.S. Maritime Administration Guaranteed Title XI financing 8. U.S. Department of Housing and Urban Development (HUD) Project Notes Local Authority Bonds New Communities Debentures - U.S. government guaranteed debentures U.S. Public Housing Notes and Bonds - U.S. government guaranteed public housing notes and bonds C. Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following non-full faith and credit U.S. government agencies (stripped securities are only permitted if they have been stripped by the agency itself): 1. Federal Home Loan Bank System Senior debt obligations 9 Packet Pg. 35  2. Student Loan Marketing Association (SLMA or "Sallie Mae") Senior debt obligations 3. Resolution Funding Corp. (REFCORP) obligations 4. Farm Credit System Consolidated system-wide bonds and notes D. Money market funds which may be managed or advised by the Bond Trustee or affiliates registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933, and having a rating by Standard & Poor's of AAAm-G; AAA-m; or AA-m and if rated by Moody=s rated Aaa, Aa1 or Aa2 and that are invested only in Qualified Investments. E. Certificates of deposit secured at all times by collateral described in A. and/or B. above. Such certificates must be issued by commercial banks, savings and loan associations or mutual savings banks. The collateral must be held by a third party and the bondholders must have a perfected first security interest in the collateral. F. Certificates of deposit, savings accounts, deposit accounts or money market deposits which are fully insured by FDIC, including BIF and SAIF. G. Debt obligations of any U.S. corporation or trust, which obligations are rated by at least two nationally recognized rating agencies in one of the three highest rating categories, or commercial paper of same rated by at least two nationally recognized rating agencies in the highest rating category at the time of purchase (without incorporating refinements or gradation of rating category by numerical modifier or otherwise). H. Commercial paper rated, at the time of purchase, "Prime - 1" by Moody's and "A- 1" or better by S&P. I. Bonds or notes issued by any state or municipality which are rated by Moody's and S&P in one of the two highest rating categories at the time of purchase. J. Federal funds or bankers acceptances with a maximum term of one year of any bank which has an unsecured, uninsured and unguaranteed obligation rating of "Prime - 1" or "A3" or better by Moody's and "A-1" or "A" or better by S&P. K. Repurchase Agreements must follow the following criteria: 1. Repos must be between the municipal entity and a dealer bank or securities firm a. Primary dealers on the Federal Reserve reporting dealer list which are rated A or better by Standard & Poor's and Moody's, or b. Banks rated "A" or above by Standard & Poor's and Moody's. 10 Packet Pg. 36  2. The written repo contract must include the following: a. Securities which are acceptable for transfer are: (l) Direct U.S. governments, or (2) Federal agencies backed by the full faith and credit of the U.S. government (and FNMA & FHLMC) b. The term of the repo may be up to 30 days c. The collateral must be delivered to the municipal entity, trustee (if trustee is not supplying the collateral) or third party acting as agent for the trustee (if the trustee is supplying the collateral) before/simultaneous with payment (perfection by possession of certificated securities). d. Valuation of Collateral (l) The securities must be valued weekly, market-to-market at current market price plus accrued interest (a) The value of collateral must be equal to 104% of the amount of cash transferred by the municipal entity to the dealer bank or security firm under the repo plus accrued interest. If the value of securities held as collateral slips below 104% of the value of the cash transferred by municipality, then additional cash and/or acceptable securities must be transferred. If, however, the securities used as collateral are FNMA or FHLMC, then the value of collateral must equal 105%. 3. Legal opinion which must be delivered to the Borrower to the effect that the repo meets guidelines under state law for legal investment of public funds. Rating categories when referred to herein shall be without regard to gradations within such categories, such as "plus" or "minus." "Rating Agency" means, as applicable, Moody's, Standard & Poor's and Fitch, or their respective successors and assigns. "Rebate Fund" means the fund by that name created by the Tax Exemption Agreement. "Record Date" means the fifteenth day (whether or not a Business Day) next preceding an Interest Payment Date therefor. "Redemption Fund" means the fund by that name created in Section 4.3 hereof. 11 Packet Pg. 37  "Refunded Indebtedness" means the mortgage loans previously entered into by the Borrower dated November 12, 1992, September 1, 1997 and February 1, 2002, in the aggregate principal amount of $_________. "Representation Letter" means the Blanket Issuer Letter of Representations dated ___________, 2014, from the Issuer to DTC. "Series 2014 Bonds" means, collectively, the Series 2014A Bonds and Series 2014B Bonds. "Series 2014A Bonds" means the $__________ aggregate principal amount of Okaloosa County, Florida Utilities System Revenue Bonds, Series 2014A (Auburn Water System, Inc. Project) authorized to be issued by the Issuer pursuant to the terms and conditions of Section 2.2 hereof. "Series 2014B Bonds" means the $________ aggregate principal amount of Okaloosa County, Florida Utilities System Revenue Bonds, Series 2014B (Auburn Water System, Inc. Project) authorized to be issued by the Issuer pursuant to the terms and conditions of Section 2.2 hereof. "Special Record Date" means the date fixed by the Bond Trustee pursuant to Section 2.2 hereof for the payment of Defaulted Interest. "Standard & Poor's" or "S&P" means Standard & Poor's, a division of the McGraw- Hill Companies, Inc., a corporation organized and existing under the laws of the State of New York, its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, "Standard & Poor's" shall be deemed to refer to any other nationally recognized securities rating agency which has been designated by the Borrower by notice to the Bond Trustee and the Issuer. "State" means the State of Florida. "System" means the water production and distribution system operated by the Borrower. "Tax Exemption Agreement" means the Tax Exemption Agreement and Certificate relating to the Bonds dated April ___, 2014, between the Borrower and the Issuer. "Unassigned Rights" means the right of the Issuer to receive payment of its fees and expenses, the Issuer's right to indemnification in certain circumstances, the Issuer's right to execute and deliver supplements and amendments to the Loan Agreement and the Issuer's right to grant consents under the Loan Agreement. "Underwriter" means The Frazier Lanier Company. "United States Government Obligations" means direct obligations of, or obligations the payment of the principal of and interest on which are fully guaranteed by, the United States of America. 12 Packet Pg. 38  "Written Request" means with reference to the Issuer, a request in writing signed by the Chairman or Vice Chairman of the Board of County Commissioners of the Issuer and with reference to the Borrower means a request in writing signed by the President of the Borrower or any other officers designated in writing by the Issuer or the Borrower, as the case may be. "Written Requests" to requisition amounts deposited in the Expense Fund or Project Fund shall be in substantially the form of EXHIBIT B hereto. Words of the feminine gender shall be deemed and construed to include correlative words of the masculine and neuter genders. Unless the context shall otherwise indicate, words importing the singular number shall include the plural and vice versa. Headings of articles and sections herein and the table of contents hereof are solely for the convenience of reference, do not constitute a part hereof and shall not affect the meaning, construction or effect hereof. All references in this instrument to designated "Articles," "Sections" and other subdivisions are to the designated Articles, Sections and other subdivisions of this instrument as originally executed. The words "herein," "hereof" and "hereunder" and other words of similar import refer to this Bond Indenture as a whole and not to any particular Article, Section or other subdivision unless the context indicates otherwise. 13 Packet Pg. 39  ARTICLE II THE BONDS SECTION 2.1. AUTHORIZED AMOUNT OF BONDS. No Bonds may be issued under the provisions of this Bond Indenture except in accordance with this Article. The Series 2014 Bonds shall be issued in the initial aggregate principal amount of $_________. The Issuer may authorize (but shall not be required to), sell and deliver one or more series of Additional Bonds for the purposes provided herein upon satisfaction of the conditions and in the manner provided herein and in the Loan Agreement. SECTION 2.2. ISSUANCE OF SERIES 2014 BONDS; ADDITIONAL BONDS. (a) The Series 2014A Bonds shall be designated "Okaloosa County, Florida Utilities System Revenue Bonds, Series 2014A (Auburn Water System, Inc. Project)." The Series 2014B Bonds shall be designated "Okaloosa County, Florida Utilities System Revenue Bonds, Series 2014B (Auburn Water System, Inc. Project)." The Series 2014 Bonds shall be issuable as fully registered Bonds in Authorized Denominations. Unless the Issuer shall otherwise direct, the Series 2014 Bonds shall be numbered from R-1 upward, with appropriate series designations. Interest on the Series 2014 Bonds shall be payable on each Interest Payment Date applicable thereto. Each Series 2014 Bond shall be dated as of the most recent Interest Payment Date to which interest has been duly paid or provided for next preceding its date of issue, unless issued on an Interest Payment Date on which interest has been paid or provided for, in which event it shall be dated as of such Interest Payment Date or, if issued prior to the first Interest Payment Date on which interest is paid, it shall be dated the original date of issue. (b) The Series 2014A Bonds shall mature on _______ 1, in the years and in the principal amounts as follows, and bear interest at the rates per annum set forth below: Year Principal ( 1) Amount Interest Rate (c) The Series 2014B Bonds shall mature on ________, in the years and in the principal amounts as follows, and bear interest at the rates per annum set forth below: Year Principal ( 1) Amount Interest Rate (d) Interest on the Series 2014 Bonds shall be calculated on the basis of a 360 day year consisting of twelve (12), thirty (30) day months. 14 Packet Pg. 40  (e) The principal of and premium, if any, on the Series 2014 Bonds shall be payable upon presentation and surrender thereof at the designated corporate office of the Bond Trustee, or its successor in trust. Payment of principal of, premium, if any, and interest on the Series 2014 Bonds shall be payable in any currency of the United States of America which, at the respective dates of payment thereof, is legal tender for the payment of public and private debts. (f) Interest payments on a Series 2014 Bond (other than with respect to Defaulted Interest) shall be made to the registered owner thereof appearing on the Bond Register as of the close of business of the Bond Registrar on the Record Date; provided, however, that such payments shall be payable by check or draft of the Bond Trustee mailed on the Interest Payment Date to such registered owner at the address of such owner as it appears on the Bond Register or at such other address furnished in writing by such registered owner to the Bond Trustee or to any owner of $1,000,000 or more in aggregate principal amount of Series 2014 Bonds as of the close of business of the Bond Trustee on the Record Date for a particular Interest Payment Date, by wire transfer sent on the Interest Payment Date, to such owner. The foregoing notwithstanding, Defaulted Interest shall be payable as provided in (g) below. (g) Defaulted Interest with respect to any Series 2014 Bond shall cease to be payable to the holder of such Series 2014 Bond on the relevant Record Date and shall be payable to the holder in whose name such Series 2014 Bond is registered at the close of business on the Special Record Date for the payment of such Defaulted Interest, which Special Record Date shall be fixed in the following manner. The Borrower shall notify the Bond Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Series 2014 Bond and the date of the proposed payment (which date shall be such as will enable the Bond Trustee to comply with the second sentence hereafter), and shall deposit with the Bond Trustee at the time of such notice an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Bond Trustee for such deposit prior to the date of the proposed payment. Money deposited with the Bond Trustee shall be held in trust for the benefit of the holders of the Series 2014 Bonds entitled to such Defaulted Interest as provided in this Section. Following receipt of such funds, the Bond Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Bond Trustee of the notice of the proposed payment. The Bond Trustee shall promptly notify the Borrower of such Special Record Date and, in the name and at the expense of the Borrower, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, not less than 10 days prior to such Special Record Date, to each holder of a Bond at the address of such holder as it appears on the Bond Register. (h) At the request of the Borrower and upon compliance by the Borrower with the requirements of the Loan Agreement with respect to the issuance or incurrence of Additional Indebtedness, the Issuer may (but shall not be required to) issue Additional Bonds from time to time for any purpose or combination of purposes permitted under the Act or other laws of the State. Those Additional Bonds shall be on a parity with the Series 2014 Bonds and any Additional Bonds issued and outstanding at the time or thereafter under this Bond Indenture. The terms and conditions of such Additional Bonds shall be set forth in a Supplemental Indenture in accordance with Section 9.1 hereof. 15 Packet Pg. 41  SECTION 2.3. EXECUTION; LIMITED OBLIGATION; NO LIABILITY OF STATE. The Bonds shall be executed on behalf of the Issuer by the facsimile or manual signature of the Chairman or Vice Chairman of its Board of County Commissioners and the Clerk or a Deputy Clerk (or such other officer or official as may be designated by the Issuer) and shall have impressed or printed manually or by facsimile thereon the corporate seal of the Issuer. The facsimile signatures of said Persons shall have the same force and effect as if such Persons had manually signed each of said Bonds. In case any officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of such Bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such Person had remained in office until delivery. The principal of, premium, if any, and interest on the Bonds shall be special and limited obligations of the Issuer payable solely from amounts payable under the Loan Agreement (except for Unassigned Rights and except to the extent paid out of moneys attributable to Bond proceeds or the income from the temporary investment thereof and, under certain circumstances, proceeds from insurance and condemnation awards) and shall be a valid claim of the respective holders thereof only against the funds established under this Bond Indenture and other moneys held by the Bond Trustee for the benefit of the Bonds and the payments due or to become due upon or under the Loan Agreement (except for Unassigned Rights), all of which are hereby assigned and pledged hereunder for the equal and ratable payment of the Bonds and shall be used for no other purpose than to pay the principal of, premium, if any, and interest on the Bonds, except as may be otherwise expressly authorized in this Bond Indenture. The principal of, premium, if any, and interest on the Bonds do not constitute a debt or liability of the State or of any agency or political subdivision thereof, other than a special and limited obligation of the Issuer within the meaning of the Act, or a pledge of the faith and credit of the State or any agency or political subdivision thereof, but shall be payable solely from the funds pledged therefor in accordance with this Bond Indenture. The issuance of the Bonds under the provisions of the Act does not, directly, indirectly or contingently, obligate the Issuer, the State or any agency or political subdivision thereof to levy any form of taxation for the payment thereof or to make any appropriation for their payment and the Bonds and the interest payable thereon do not now and shall never constitute a debt of the Issuer, the State or any agency or political subdivision thereof within the meaning of the Constitution or the statutes of the State, and do not now and shall never constitute a charge against the credit or taxing power of the Issuer, the State or any agency or political subdivision thereof. Neither the Issuer, the State nor any political subdivision or agency thereof shall in any event be liable for the payment of the principal of, redemption premium, if any, or interest on the Bonds or for the performance of any pledge, obligation or agreement of any kind whatsoever which may be undertaken by the Borrower. No breach by the Issuer of any such pledge, obligation or agreement may impose any liability, pecuniary or otherwise, upon the State or any agency or political subdivision thereof or any charge upon its or their general credit or against its or their taxing power. SECTION 2.4. AUTHENTICATION. No Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Bond Indenture unless and until a certificate of authentication on such Bond substantially in the form set forth in EXHIBIT A shall 16 Packet Pg. 42 have been duly executed by the Bond Trustee, and such executed certificate of the Bond Trustee upon any such Bond shall be conclusive evidence that such Bond has been authenticated and delivered under this Bond Indenture. The Bond Trustee's certificate of authentication on any Bond shall be deemed to have been executed by it if signed by an authorized signatory of the Bond Trustee but it shall not be necessary that the same signatory sign the certificate of authentication on all of the Bonds issued hereunder. SECTION 2.5. FORM OF BONDS AND TEMPORARY BONDS. The Bonds shall be substantially in the form set forth in EXHIBIT A hereto with such appropriate variations, omissions and insertions as are permitted or required by this Bond Indenture or deemed necessary by the Bond Trustee, Bond Counsel and the Issuer. The Bonds may be initially issued in temporary form, exchangeable for definitive Bonds when ready for delivery. The temporary Bonds shall be of such denomination or denominations as may be determined by the Issuer, and may contain such reference to any of the provisions of this Bond Indenture as may be appropriate. Every temporary Bond shall be executed by the Issuer and be authenticated by the Bond Trustee upon the same conditions and in substantially the same manner as the definitive Bonds. If the Issuer issues temporary Bonds it will execute and furnish definitive Bonds without delay and thereupon the temporary Bonds may be surrendered for cancellation in exchange therefor at the designated corporate trust office of the Bond Trustee, and the Bond Trustee shall authenticate and deliver in exchange for such temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized denominations. Until so exchanged, the temporary Bonds shall be entitled to the same benefits under this Bond Indenture as definitive Bonds authenticated and delivered hereunder. SECTION 2.6. DELIVERY OF SERIES 2014 BONDS. Upon the execution and delivery of this Bond Indenture, the Issuer shall execute and deliver to the Bond Trustee and the Bond Trustee shall authenticate the Series 2014A Bonds to be issued in the initial aggregate principal amount of $________ and the Series 2014B Bonds in the initial aggregate principal amount of $________, and the Bond Trustee shall deliver them to the Purchaser through the DTC system as may be directed by the Underwriter. Prior to the delivery by the Bond Trustee of any of the Series 2014 Bonds, there shall be filed with or delivered to the Bond Trustee and the Issuer: (a) a copy, duly certified by the Chairman or Vice Chairman of the Board of County Commissioners or the Clerk or any Deputy Clerk of the Issuer, of the resolution(s) adopted and approved by the Issuer authorizing the execution and delivery of the Loan Agreement, the Tax Exemption Agreement, the Purchase Contract and this Bond Indenture and the issuance and sale of the Series 2014 Bonds; (b) a certified copy of a letter from the Division of Bond Finance of the State of Florida providing sufficient private activity bond allocation in the amount of the Series 2014A Bonds; (c) a copy, duly certified by the Secretary or other designee of the Borrower, of the resolutions adopted and approved by the Borrower authorizing the execution and delivery of the 17 Packet Pg. 43 Loan Agreement, the Official Statement, the Tax Exemption Agreement and other documents and certificates executed by the Borrower in connection with the issuance of the Series 2014 Bonds, and approving this Bond Indenture and the issuance and sale of the Series 2014 Bonds; (d) an original executed counterpart of this Bond Indenture, the Loan Agreement and the Tax Exemption Agreement; (e) a request and authorization to the Bond Trustee on behalf of the Issuer and signed by its Chairman or Vice Chairman of the Board of County Commissioners to authenticate and deliver the Series 2014 Bonds in an initial aggregate principal amount not exceeding $_________ to the Underwriter upon payment to the Bond Trustee, but for the account of the Issuer, of the net proceeds from the sale of the Series 2014 Bonds; and (f) such other closing documents and opinions of counsel as the Bond Trustee, the Issuer, counsel to the Issuer or Bond Counsel may reasonably specify. SECTION 2.7. MUTILATED, LOST, STOLEN OR DESTROYED BONDS. In the event any temporary or definitive Bond is mutilated, lost, stolen or destroyed, the Issuer may execute and the Bond Trustee may authenticate a new Bond of like form, date and denomination as that mutilated, lost, stolen or destroyed; provided that, in the case of any mutilated Bond, such mutilated Bond shall first be surrendered to the Issuer, and in the case of any lost, stolen or destroyed Bond, there shall be first furnished to the Issuer and the Bond Trustee evidence of such loss, theft or destruction satisfactory to the Issuer and the Bond Trustee, together with indemnity satisfactory to them. In the event any such Bond shall have matured, instead of issuing a duplicate Bond the Issuer may pay the same without surrender thereof. The Issuer and the Bond Trustee may charge the holder or owner of such Bond with their reasonable fees and expenses in this connection. SECTION 2.8. TRANSFER AND EXCHANGE OF BONDS; PERSONS TREATED AS OWNERS. The Issuer shall cause the Bond Register to be kept at the designated corporate trust office of the Bond Trustee, as Bond Registrar, which is hereby constituted and appointed the registrar of the Issuer. Upon surrender for transfer of any Bond at the designated corporate trust office of the Bond Trustee, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Bond Trustee and duly executed by, the registered owner or the attorney of such owner duly authorized in writing, the Issuer shall execute and the Bond Trustee shall authenticate, date and deliver in the name of the transferee or transferees a new Bond or Bonds of the same maturity of authorized denominations, for the same aggregate principal amount and of like tenor. Any Bond or Bonds may be exchanged at said office of the Bond Trustee for the same aggregate principal amount of Bond or Bonds of other authorized denominations and of like tenor. The execution by the Issuer of any Bond shall constitute full and due authorization of such Bond and the Bond Trustee shall thereby be authorized to authenticate, date and deliver such Bond. If any Bond is transferred or exchanged on the Bond Register by the Bond Trustee after notice of the optional redemption of such Bond has been given, the Bond Trustee shall attach a copy of such notice to the Bond issued in connection with such transfer or exchange. The Bond Trustee shall not be required to register the transfer of or exchange any Bond after the mailing of 18 Packet Pg. 44 notice calling such Bond or portion thereof for redemption has occurred as herein provided, or during the period of fifteen days next preceding the giving of notice calling any Bond or Bonds of the same maturity for redemption. The Person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for the purpose of receiving payment of or on account of principal thereof and premium, if any, thereon and interest due thereon and for all other purposes, and neither the Issuer nor the Bond Trustee shall be affected by any notice to the contrary, but such registration may be changed as herein provided. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. Any Bond surrendered for the purpose of payment or retirement or for exchange or transfer or for replacement pursuant to Section 2.7 or 2.8 hereof, shall be canceled upon surrender thereof to the Bond Trustee or any Paying Agent. Any such Bonds canceled by any Paying Agent other than the Bond Trustee shall be promptly transmitted by such Paying Agent to the Bond Trustee. Certification of Bonds canceled by the Bond Trustee and Bonds canceled by a Paying Agent other than the Bond Trustee which are transmitted to the Bond Trustee shall be made to the Issuer and to the Borrower. Canceled Bonds may be destroyed by the Bond Trustee unless instructions to the contrary are received from the Issuer or the Borrower. The Issuer and the Bond Trustee may charge each Bondholder requesting an exchange, change in registration or registration of transfer a sum not exceeding the actual cost of any tax, fee or other governmental charge required to be paid with respect to such exchange, registration or transfer, except in the case of the issuance of a definitive Bond for a temporary Bond and except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond surrendered for redemption. SECTION 2.9. BOOK-ENTRY ONLY SYSTEM FOR THE BONDS. The Bonds shall be initially issued in the form of a separate single fully registered Bond for each of the maturities. Upon initial issuance, the ownership of each such Bond shall be registered in the Bond Register in the name of Cede & Co., as nominee of DTC, and except as provided in Section 2.10 hereof, all of the Outstanding Bonds shall be registered in the Bond Register in the name of Cede & Co., as nominee of DTC. With respect to Bonds registered in the Bond Register in the name of Cede & Co., as nominee of DTC, the Issuer, the Bond Trustee and the Borrower shall have no responsibility or obligation to any DTC Participant or to any person on behalf of whom such a DTC Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the Issuer, the Bond Trustee and the Borrower shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant or any other Person, other than a Bondholder, as shown in the Bond Register, of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any DTC Participant or any other Person, other than a Bondholder, as shown in the Bond Register, of any amount with respect to principal of, premium, if any, or interest on the Bonds. Notwithstanding any other provision of this Bond Indenture to the contrary, the Issuer, the Bond Trustee and each Paying Agent, if any, shall be entitled to treat and consider the Person in whose name each Bond is registered in the 19 Packet Pg. 45 Bond Register as the absolute owner of such Bond for the purpose of payment of principal, premium, if any, and interest on such Bond, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Bond Trustee and each Paying Agent, if any, shall pay all principal of, premium, if any, and interest on the Bonds only to or upon the order of the respective Bondholders, as shown in the Bond Register as provided in this Bond Indenture, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to satisfy and discharge the Issuer's obligations fully with respect to payment of principal of, premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. No Person other than a Bondholder, as shown in the Bond Register, shall receive a Bond certificate evidencing the obligation of the Issuer to make payments of principal, premium, if any, and interest pursuant to this Bond Indenture. Upon delivery by DTC to the Bond Trustee of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Bond Indenture with respect to interest checks or drafts being mailed to the registered owner as of the close of business on the Record Date, the word "Cede & Co." in this Bond Indenture shall refer to such new nominee of DTC; and upon receipt of such a notice the Bond Trustee shall promptly deliver a copy thereof to each Paying Agent, if any. SECTION 2.10. SUCCESSOR SECURITIES DEPOSITORY; TRANSFERS OUTSIDE BOOK-ENTRY ONLY SYSTEM. In the event that the Issuer, the Borrower or the Bond Trustee determines that DTC is incapable of discharging its responsibilities described herein and in the Representation Letter or that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the Issuer or the Bond Trustee shall, with the consent of the Borrower (which consent shall not be unreasonably withheld), (i) appoint a successor securities depository, qualified to act as such under Section 17(a) of the Securities Exchange Act of 1934, as amended, notify DTC and DTC Participants of the appointment of such successor securities depository and transfer one or more separate Bond certificates to such successor securities depository, or (ii) notify DTC and DTC Participants of the availability through DTC of Bond certificates and transfer one or more separate Bond certificates to DTC Participants having Bonds credited to their DTC accounts. In such event, the Bonds shall no longer be restricted to being registered in the Bond Register in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names Bondholders transferring or exchanging Bonds shall designate, in accordance with the provisions of this Bond Indenture. The Bond Trustee shall give written notice to the Borrower of a determination to issue certificated bonds. SECTION 2.11. PAYMENTS AND NOTICES TO CEDE & CO. Notwithstanding any other provision of this Bond Indenture to the contrary, so long as any of the Bonds are registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on such Bonds and all notices with respect to such Bonds shall be made and given, respectively, in the manner provided in the Representation Letter. The Bond Trustee shall request in each notice sent to Cede & Co. pursuant to the terms of this Bond Indenture that Cede & Co. forward or cause to be forwarded such notice to the DTC Participants, but neither the Bond Trustee nor the Issuer shall be liable if the Bond Trustee fails to make such request or if Cede & Co. fails to honor such request. 20 Packet Pg. 46  ARTICLE III APPLICATION OF BOND PROCEEDS AND REQUIRED FUND DEPOSITS SECTION 3.1. EXPENSE FUND. A special fund is hereby established with the Bond Trustee and designated the "Expense Fund – Auburn Water System, Inc. Project" (hereinafter called the "Expense Fund") to the credit of which such deposits shall be made as are required by the provisions of Section 3.3 of this Bond Indenture. The monies in the Expense Fund shall be held by the Bond Trustee in trust and shall be applied to the payment of the costs of issuing the Bonds, including necessary incidental expenses and reimbursement to the Borrower for such costs and expenses paid by the Borrower in connection with issuing the Bonds and, pending such application, shall be subject to a lien and charge in favor of the holders of the Bonds for their security until paid out. After completion of payment of all costs of issuance of the Series 2014 Bonds, as certified by a Written Request of the Borrower to the Bond Trustee, and in any event no later than April 1, 2015, any surplus money in the Expense Fund shall be transferred to the Project Fund. Payments from the Expense Fund shall be made in accordance with the provisions of this paragraph. Before any such payment shall be made, there shall be filed with the Bond Trustee a Written Request of the Borrower substantially in the form attached hereto as EXHIBIT B, stating (i) the name of the person, firm or corporation to whom each such payment is due, (ii) the amount of each payment, and (iii) the purpose by general classification for which each obligation to be paid was incurred. Such Written Request shall be accompanied by written invoices for the matters referenced therein and if the purpose of the Written Request is to reimburse the Borrower for prior expenditures, proof of prior payment by the Borrower of such invoices. Upon receipt of each requisition the Bond Trustee shall pay the obligation set forth in such requisition out of money in the Expense Fund, and each such obligation shall be paid by wire transfer or by check signed by one or more officers or employees of the Bond Trustee designated for such purpose by the Bond Trustee. In making such payments the Bond Trustee may rely upon such Written Requests. SECTION 3.2. PROJECT FUND. A special fund is hereby established with the Bond Trustee and designated the "Project Fund – Auburn Water System, Inc. Project" (hereinafter called the "Project Fund"), to the credit of which such deposits shall be made as are required by the provisions of Section 3.3 of this Bond Indenture. Monies in the Project Fund shall be held by the Bond Trustee in trust and shall be applied to the payment of, and reimbursement to the Borrower for, costs and expenses in connection with the Project, and, pending such application, shall be subject to a lien and charge in favor of the holders of the Bonds for their security until paid out. After completion of the Project, as certified in a Written Request of the Borrower to the Bond Trustee, surplus money in the Project Fund shall be applied as directed in such Written Request as follows (and in the following order): (a) to pay the costs of new improvements or 21 Packet Pg. 47 equipment for the Borrower, but only upon receipt by the Bond Trustee of an Opinion of Bond Counsel that such payment will not adversely affect the validity of, or the exclusion from, gross income for federal income tax purposes of interest on the Series 2014A Bonds, (b) to the Bond Sinking Fund to pay interest coming due on the Bonds on the next two Interest Payment Dates, (c) upon receipt of an Opinion of Bond Counsel that such payment will not adversely affect the validity or exclusion from gross income for federal tax purposes of the interest on the Series 2014A Bonds, to the Bond Sinking Fund to pay the principal coming due on the Bonds on the next Principal Payment Date, and (d) to the Redemption Fund and held as a segregated subaccount therein to be used to purchase and retire Bonds at the Written Request of the Borrower or to redeem Bonds on their first optional redemption date, and such surplus money shall not be invested at a yield exceeding the yield on the Bonds. Payments from the Project Fund shall be made in accordance with the following provisions: before any such payment shall be made, there shall be filed with the Bond Trustee a Written Request of the Borrower substantially in the form attached hereto as EXHIBIT B, stating: (a) The name of the person, firm or corporation to whom each such payment is due; (b) The respective amounts to be paid; (c) The purpose by general classification for which each obligation to be paid was incurred; and (d) That obligations in the stated amounts have been incurred by the Borrower and are presently due and payable and that each item thereof is a necessary cost of the Project and is a proper charge against the Project Fund and has not been paid previously from the Project Fund. Such Written Request shall be accompanied by a summary of such invoices for the matters referenced therein and if the purpose of the Written Request is to reimburse the Borrower for prior expenditures, evidence of prior payment by the Borrower of such amounts. Upon receipt of each Written Request, the Bond Trustee shall pay the obligations set forth in such Written Request out of moneys in the Project Fund, and each such obligation shall be paid by check signed by the Bond Trustee or by wire transfer in accordance with the instructions provided by the Borrower. In making such payments, the Bond Trustee may conclusively rely upon such Written Request. SECTION 3.3. DEPOSIT OF BOND PROCEEDS. The Issuer, for and on behalf of the Borrower, shall deposit or cause to be deposited with the Bond Trustee all of the proceeds (net of discount, if any) loaned to the Borrower from the sale of the Series 2014 Bonds and the Bond Trustee shall deposit such proceeds as follows: (a) deposit $__________ of the Series 2014A Bond proceeds and $__________ of the Series 2014B Bond proceeds to the credit of the Bond Sinking Fund established pursuant to Section 4.2 hereof; and 22 Packet Pg. 48  (b) deposit $_________ of the Series 2014A Bond proceeds and $_________ of the Series 2014B Bond proceeds to the credit of the Expense Fund established pursuant to Section 3.1 hereof. (c) deposit the remainder of the Series 2014A Bond proceeds ($_________) to the credit of the Project Fund established pursuant to Section 3.2 hereof. (d) utilize the remainder of the Series 2014B Bond proceeds to retire the Refunded Indebtedness on the date hereof. 23 Packet Pg. 49  ARTICLE IV REVENUES AND FUNDS SECTION 4.1. SOURCE OF PAYMENT OF BONDS. The Bonds herein authorized and all payments to be made by the Issuer thereon and into the various Funds established under this Bond Indenture are not general obligations of the Issuer but are special limited obligations payable solely from amounts payable under the Loan Agreement pledged hereunder (it being understood that such pledged payments do not include the fees and expenses of the Issuer and amounts payable to the Issuer as indemnification under certain circumstances), and amounts on deposit in the Funds created hereunder (other than the Rebate Fund). SECTION 4.2. BOND SINKING FUND. The Issuer shall establish with the Bond Trustee and maintain so long as any of the Bonds are outstanding a separate account to be known as the "Bond Sinking Fund – Auburn Water System, Inc." (hereinafter called the "Bond Sinking Fund"). The Bond Sinking Fund shall be held by the Bond Trustee and shall be funded in accordance with Section 4.1 of the Loan Agreement. Except as provided in this paragraph, in Sections 7.6 or 8.2 hereof and as directed by the Borrower pursuant to the Tax Exemption Agreement, moneys in the Bond Sinking Fund shall be used solely for the payment of interest on and principal of the Bonds as the same shall become due and payable and to redeem the Bonds in accordance with the mandatory Bond Sinking Fund redemption schedule provided in Section 5.1 hereof. The Bond Trustee shall at all times maintain accurate records of deposits into the Bond Sinking Fund, and the sources and dates of such deposits. In lieu of such mandatory Bond Sinking Fund redemption the Bond Trustee may, at the written request of the Borrower, purchase an equal principal amount of Bonds with the same Maturity Date in the open market at prices not exceeding the principal amount of the Bonds being purchased plus accrued interest. In addition, the amount of Bonds to be redeemed on any date pursuant to the mandatory Bond Sinking Fund redemption schedule shall be reduced by the principal amount of Bonds with the same Maturity Date which are acquired by the Borrower and delivered to the Bond Trustee for cancellation. SECTION 4.3. REDEMPTION FUND. The Issuer shall establish with the Bond Trustee and maintain so long as any of the Bonds are outstanding a separate account to be known as the "Redemption Fund – Auburn Water System, Inc. Project" (the "Redemption Fund"). In the event of (i) prepayment by or on behalf of the Borrower under the Loan Agreement, (ii) receipt by the Bond Trustee of condemnation awards or insurance proceeds for purposes of redeeming Bonds, or (iii) deposit with the Bond Trustee by the Borrower or the Issuer of moneys from any other source for redeeming Bonds, except as otherwise provided in Section 4.2 of this Bond Indenture, such moneys shall be deposited in the Redemption Fund. Moneys on deposit in the Redemption Fund shall be used first to make up any deficiencies existing in the Bond Sinking Fund, and second for the purchase or redemption of Bonds in accordance with the provisions of Article V hereof. SECTION 4.4. INVESTMENT OF FUNDS; INCOME. (a) Moneys in the Bond Sinking Fund, Expense Fund, Project Fund and Redemption Fund shall be invested in Qualified Investments upon a Written Request of the Borrower filed with the Bond Trustee; provided, however, that moneys held in the Redemption Fund shall only 24 Packet Pg. 50 be invested in United States Government Obligations with a term not exceeding the earlier of 30 days from the date of investment of such moneys or the date such moneys are anticipated to be required. Absent a written request regarding investment instructions, the Bond Trustee shall invest the subject moneys in any investment vehicle described in item D of the term "Qualified Investments." Such investments shall be made so as to mature on or prior to the date or dates that moneys therefrom are anticipated to be required. The Bond Trustee, when authorized by the Borrower, may trade with itself in the purchase and sale of securities for such investments; provided, however, that in no case shall any investment be otherwise than in accordance with the investment limitations contained herein. The Bond Trustee shall not be liable or responsible for any loss resulting from any such investments. Any purchase or sale of securities may be accomplished through the Bond Trustee's bond department. (b) All income derived from the investment of moneys on deposit in the following funds shall be deposited as follows: (i) income derived from the investment of moneys on deposit in the Redemption Fund, Expense Fund and the Bond Sinking Fund shall be retained in such Funds; and (ii) income derived from the investment of moneys on deposit in the Project Fund (A) prior to the completion of the Project, shall be retained in the Project Fund, and (B) after completion of the Project, shall be applied in accordance with Section 3.2 hereof. SECTION 4.5. TRUST FUNDS. All moneys received by the Bond Trustee under the provisions of this Bond Indenture shall be trust funds under the terms hereof for the benefit of all Outstanding Bonds and shall not be subject to lien or attachment of any creditor of the Issuer or the Borrower. Such moneys shall be held in trust and applied in accordance with the provisions of this Bond Indenture. SECTION 4.6. EXCLUDED FUNDS; TRANSFERS TO REBATE FUND. The foregoing provisions of this Article IV notwithstanding, (i) the Rebate Fund shall not be considered a part of the "trust estate" created by this Bond Indenture, and (ii) the Bond Trustee shall be permitted to transfer moneys on deposit in any of the trust funds established under this Article IV to the Rebate Fund in accordance with the Written Request of the Borrower purported to be pursuant to the provisions of the Tax Exemption Agreement. 25 Packet Pg. 51  ARTICLE V REDEMPTION OF BONDS SECTION 5.1. MANDATORY SINKING FUND REDEMPTIONS WITHOUT PREMIUM. (a) The Series 2014A Bonds maturing on ________ 1, ______ shall be subject to mandatory redemption and payment prior to maturity in the principal amounts below at a redemption price equal to the principal amount thereof plus accrued interest to the redemption date, without premium. Pursuant to Section 4.2 of the Loan Agreement, the Borrower shall deposit in the Bond Sinking Fund a sum that, together with all amounts then on deposit in the Bond Sinking Fund and then available for the redemption of the Series 2014A Bonds, shall be sufficient to redeem (after credit as provided below) the following principal amounts of Series 2014A Bonds on the following sinking fund payment dates: _________1 Principal of the Year Amount $ *Final Maturity (b) The Series 2014B Bonds maturing on ________ 1, _____ shall be subject to mandatory redemption and payment prior to maturity in the principal amounts below at a redemption price equal to the principal amount thereof plus accrued interest to the redemption date, without premium. Pursuant to Section 4.2 of the Loan Agreement, the Borrower shall deposit in the Bond Sinking Fund a sum that, together with all amounts then on deposit in the Bond Sinking Fund and then available for the redemption of the Series 2014B Bonds shall be sufficient to redeem (after credit as provided below) the following principal amounts of Series 2014B Bonds on the following sinking fund payment dates: ________ 1 Principal of the Year Amount $ *Final Maturity (c) On or before the thirtieth (30th) day prior to any sinking fund payment date, the Bond Trustee shall proceed to select for redemption (by lot in such manner as the Bond Trustee 26 Packet Pg. 52 may determine), from all Outstanding Bonds subject to mandatory sinking fund redemption on such date, an aggregate principal amount of such Bonds equal to the amount required to be on deposit in the Bond Sinking Fund with respect to such Bonds on such sinking fund payment date, and shall call such Bonds or portions thereof in Authorized Denominations for redemption from the Bond Sinking Fund on such sinking fund payment date and give notice of such call. At the option of the Borrower, to be exercised by delivery of a Written Request of the Borrower to the Bond Trustee on or before the sixtieth (60th) day next preceding any sinking fund payment date, it may (i) deliver to the Bond Trustee for cancellation Bonds or portions thereof in Authorized Denominations of the maturity relating to such sinking fund payment date in any aggregate principal amount desired by the Borrower, or (ii) specify a principal amount of Bonds or portions thereof in Authorized Denominations or the maturity relating to such sinking fund payment date which prior to said date have been purchased or redeemed (otherwise than through the operation of the Bond Sinking Fund) and cancelled by the Bond Trustee at the request of the Borrower and not theretofore applied as a credit against any sinking fund payment. Each such Bond or portion thereof so delivered or previously redeemed shall be credited by the Bond Trustee at one hundred percent (100%) of the principal amount thereof against the obligation of the Issuer on such sinking fund payment date with respect to Bonds of such maturity. Any excess shall be credited against the next sinking fund payment relating to the Bonds of such maturity. In the event the Borrower shall avail itself of the provisions of clause (i) of the second sentence of this paragraph, the Written Request shall be accompanied by the Bonds or portions thereof to be cancelled. (d) The amount of mandatory Bond Sinking Fund redemption requirement shall be reduced by the amount of Bonds acquired and delivered in accordance with Section 4.3 hereof in satisfaction of such Bond Sinking Fund requirement. Payment or redemption of the Bonds through the Bond Sinking Fund shall be without premium. The Bonds shall be redeemed by the Bond Trustee pursuant to the provisions of this paragraph without any notice from or direction by the Issuer or the Borrower. Interest is payable upon mandatory Bond Sinking Fund redemptions as set forth in Section 4.2 hereof. SECTION 5.2. OPTIONAL REDEMPTION. (a) The Series 2014 Bonds are not redeemable at the option of the Borrower or the Issuer prior to _______ 1, _____. The Series 2014 Bonds may be redeemed in whole or in part at the option of the Issuer (upon the direction of the Borrower) on any date on or after _______ 1, ______ at the following redemption prices (expressed as a percentage of the principal amount to be redeemed) plus accrued interest to the date fixed for redemption during the periods set forth below: Redemption Period (Both Dates Inclusive) Redemption Price 27 Packet Pg. 53  (b) Any Series 2014 Bonds which are Borrower Bonds are subject to redemption in whole or in part (in an Authorized Denomination) prior to their Maturity Date at the option of the Borrower out of amounts deposited in the Redemption Fund by the Borrower, in whole or in part (and if in part, in an Authorized Denomination) on any Business Day while such Series 2014 Bonds are Borrower Bonds at a redemption price equal to 100% of the principal amount thereof plus accrued interest, if any, to the redemption date. SECTION 5.3. PURCHASE IN LIEU OF REDEMPTION. In lieu of an optional redemption and cancellation of Bonds, Bonds may be purchased by the Trustee on behalf of the Issuer at the direction of the Borrower for the premiums set forth in Section 5.2 hereof and either (i) cancelled, or (ii) remarketed. Notice and selection of Bonds being purchased pursuant to the provisions of this Section 5.3 shall be given/selected in the same manner as the notice and selection of Bonds called for optional redemption; provided, that the notice provided for in Section 5.4 hereof shall be modified as necessary to reflect a purchase in lieu of redemption. SECTION 5.4. NOTICE OF REDEMPTION; CONDITIONAL NOTICE. (a) Except as hereinafter provided, a copy of the notice of the call for any such redemption identifying the Bonds to be redeemed shall be given by first class mail, postage prepaid, to the registered owners of Bonds to be redeemed at their addresses as shown on the Bond Register not less than thirty (30) days or more than sixty (60) days prior to the redemption date. Except for mandatory Bond Sinking Fund redemptions, prior to the date that the redemption notice is first given as aforesaid, funds shall be placed with the Bond Trustee to pay the principal of such Bonds, any premium thereon and accrued interest thereon to the redemption date, or such notice shall state that any redemption is conditional on such funds being deposited with the Bond Trustee on the redemption date and that a failure to make such deposit shall not constitute an event of default hereunder. (b) Failure to give notice in the manner prescribed hereunder with respect to any Bond, or any defect in such notice, shall not affect the validity of the proceedings for redemption for any Bond with respect to which notice was properly given. Upon the happening of the above conditions and if sufficient moneys are on deposit with the Bond Trustee on the applicable redemption date to redeem the Bonds to be redeemed and to pay interest due thereon and premium, if any, the Bonds thus called shall not after the applicable redemption date bear interest, be protected by this Bond Indenture or be deemed to be outstanding under the provisions of this Bond Indenture. The Bond Trustee shall redeem, in the manner provided in this Article V, such an aggregate principal amount of such Bonds at the principal amount thereof plus accrued interest to the redemption date and unpaid thereon and premium, if any, as will exhaust as nearly as practicable such funds. At the direction of the Borrower, such funds may be invested in United States Government Obligations until needed for redemption payout. (c) Notwithstanding the foregoing, so long as Bonds are subject to the book-entry only system of registration, such notice shall only be sent to the corresponding securities depository (which shall initially be DTC) and such notice may be sent by means of facsimile or any other means acceptable to the securities depository. 28 Packet Pg. 54  (d) If any Bond is transferred or exchanged on the Bond Register by the Bond Registrar after notice has been given calling such Bond for redemption, the Bond Registrar will attach a copy of such notice to the Bond issued in connection with such transfer. SECTION 5.5. METHOD OF SELECTING BONDS IN CASE OF PARTIAL REDEMPTION. In the event that less than all of the Outstanding Bonds or portions thereof shall be redeemed, the maturities of the Bonds to be redeemed shall be designated by the Borrower and, if not so designated, the Bonds to be redeemed shall be redeemed in inverse order of maturity. If less than all Bonds or portions thereof of a single maturity are to be redeemed, they shall be selected by lot in such manner as the Bond Trustee may determine (subject to Section 5.1(d) hereof). In case a Bond is of a denomination larger than an Authorized Denomination, a portion of such Bond may be redeemed, but Bonds shall be redeemed only in the principal amount of an Authorized Denomination each or any integral multiple thereof. Upon surrender of any Bond for redemption in part only, the Issuer shall execute and the Bond Trustee shall authenticate and deliver to the owner thereof, at the expense of the Borrower, a new Bond or Bonds of the same maturity of Authorized Denominations in an aggregate principal amount equal to the unredeemed portion of the Bond surrendered. SECTION 5.6. BONDS DUE AND PAYABLE ON REDEMPTION DATE; INTEREST CEASES TO ACCRUE. Except as otherwise provided in Section 5.1 hereof, on or before the Business Day prior to the redemption date specified in the notice of redemption, an amount of money which together with all amounts then on deposit in the Bond Sinking Fund or Redemption Fund as appropriate and available for redemption of the Bonds shall be sufficient to redeem all Bonds called for redemption at the appropriate redemption price, including accrued interest to the date fixed for redemption, shall be paid to the Bond Trustee for deposit in the Bond Sinking Fund or Redemption Fund, as appropriate. On the redemption date the principal amount of each Bond to be redeemed, together with the accrued interest thereon to such date and redemption premium, if any, shall become due and payable; and from and after such date, notice having been given and the deposit having been made in accordance with the provisions of this Article V, then, notwithstanding that any Bonds called for redemption shall not have been surrendered, no further interest shall accrue on any such Bonds. From and after such date of redemption (such notice having been given and such deposit having been made), the Bonds to be redeemed shall not be deemed to be Outstanding hereunder, and the Issuer shall be under no further liability in respect thereof. SECTION 5.7. CANCELLATION. All Bonds which have been redeemed shall be cancelled and cremated or otherwise destroyed by the Bond Trustee and shall not be reissued and a counterpart of the certificate of cremation or other destruction evidencing such cremation or other destruction shall be furnished by the Bond Trustee to the Issuer and the Borrower; provided, however, that one or more new Bonds shall be issued for the unredeemed portion of any Bond without charge to the holder thereof. 29 Packet Pg. 55  ARTICLE VI GENERAL COVENANTS SECTION 6.1. PAYMENT OF PRINCIPAL, PREMIUM, IF ANY, AND INTEREST. Subject to the limited source of payment hereinafter referred to, the Issuer covenants that it will promptly pay the principal of, premium, if any, and interest on every Bond issued under this Bond Indenture at the place, on the dates and in the manner provided herein and in said Bond according to the true intent and meaning thereof. The principal of and interest and premium, if any, on the Bonds are payable solely from payments or prepayments by the Borrower under the Loan Agreement, which payments are hereby specifically assigned and pledged to the payment of the Bonds in the manner and to the extent herein specified, and nothing in the Bonds or in this Bond Indenture shall be considered as assigning or pledging any other funds or assets of the Issuer (except the moneys and the Loan Agreement pledged under this Bond Indenture). SECTION 6.2. PERFORMANCE OF COVENANTS; LEGAL AUTHORIZATION. The Issuer covenants that it will faithfully perform at all times any and all covenants, undertakings, stipulations and provisions contained in this Bond Indenture, in any and every Bond executed, authenticated and delivered hereunder and in all proceedings of its members pertaining thereto. The Issuer shall not be required to perform any undertaking or to execute any instrument pursuant to the provisions hereof until it shall have been requested to do so by the Borrower or the Bond Trustee, or shall have received the instrument to be executed and, at the option of the Issuer, shall have received from the party requesting such performance or execution assurance satisfactory to the Issuer that the Issuer shall be reimbursed for its reasonable expenses incurred or to be incurred in connection with such performance or execution. The Issuer represents that it is duly authorized under the Constitution and laws of the State to issue the Bonds authorized hereby, to execute this Bond Indenture, to assign the Loan Agreement and payments thereunder under this Bond Indenture in the manner and to the extent herein set forth; all action on its part for the issuance of the Bonds and the execution and delivery of this Bond Indenture has been taken; and the Bonds in the hands of the holders thereof as shown on the Bond Register are and will be valid and enforceable obligations of the Issuer according to the import thereof. SECTION 6.3. OWNERSHIP; INSTRUMENTS OF FURTHER ASSURANCE. The Issuer represents that the pledge and assignment of its interest in the Loan Agreement (other than the Unassigned Rights) to the Bond Trustee hereby made are valid. The Issuer covenants that it will defend, at the sole cost of the Borrower, its interest in the Loan Agreement and the assignment thereof to the Bond Trustee, for the benefit of the holders of the Bonds against the claims and demands of all Persons whomsoever. The Issuer covenants that, at the sole cost of the Borrower, it will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, such indentures supplemental hereto and such further acts, instruments and transfers as the Bond Trustee may reasonably require for the better assuring, transferring, conveying, pledging, assigning and confirming unto the Bond Trustee, the Loan Agreement and all payments thereon and thereunder pledged hereby to the payment of the principal of, premium, if any, and interest on the Bonds. 30 Packet Pg. 56  SECTION 6.4. RECORDING AND FILING. The Issuer covenants that, solely from additional amounts payable as provided in Section 4.8 of the Loan Agreement, it will cause, if necessary, this Bond Indenture and all supplements hereto and the Loan Agreement and all supplements thereto, and all related financing statements, to be kept, recorded and filed in such manner and in such places as may be required by law in order to preserve and protect fully the security of the holders of the Bonds and the rights of the Bond Trustee hereunder. SECTION 6.5. BOOKS AND RECORDS. The Issuer covenants that so long as any Bonds are outstanding and unpaid, to the extent of its financial dealings or transactions in relation to the Borrower and the amounts derived from the Loan Agreement pledged under this Bond Indenture, it will cause the Bond Trustee to keep, or cause to be kept, proper records and accounts and the Bond Trustee hereby agrees to keep such records and provide the same to the Issuer and Borrower upon reasonable request. Such records and accounts shall at all times be open for any lawful purpose to the inspection of such accountants or other agencies as the Bond Trustee may from time to time designate. SECTION 6.6. LIST OF BONDHOLDERS. The Bond Registrar will keep on file at its office the Bond Register, indicating the names and addresses of the holders of the Bonds and the serial numbers of such Bonds held by each of such holders. At reasonable times and under reasonable regulations established by the Bond Registrar, the Bond Register may be inspected and copied by the Borrower, the Issuer or by the authorized representative of any holder or holders of ten percent (10%) or more in outstanding principal amount of the Bonds, such ownership and the authority of any such designated representatives to be evidenced to the satisfaction of the Bond Registrar. SECTION 6.7. RIGHTS UNDER THE LOAN AGREEMENT. The Issuer agrees that the Bond Trustee in its own name or in the name of the Issuer may enforce all rights of the Issuer and all obligations of the Borrower under and pursuant to the Loan Agreement for and on behalf of the Bondholders (other than the Unassigned Rights), whether or not the Issuer is in default hereunder. SECTION 6.8. DESIGNATION OF ADDITIONAL PAYING AGENTS. The Issuer may, in its discretion (but only with the prior consent of the Borrower), cause the necessary arrangements to be made through the Bond Trustee and to be thereafter continued for the designation of alternate Paying Agents and for the making available of funds hereunder for the payment of such of the Bonds as shall be presented when due at the principal corporate trust office of the Bond Trustee, or its successor in trust hereunder, or at the principal corporate trust office of said alternate Paying Agents. SECTION 6.9. ARBITRAGE; COMPLIANCE WITH TAX EXEMPTION AGREEMENT. The Issuer covenants and agrees that it will not take any action or fail to take any action with respect to the investment of the proceeds of any Bonds issued under this Bond Indenture (regardless of the source thereof and whether or not held under this Bond Indenture) or with respect to the payments derived from the Loan Agreement or any other moneys regardless of source or where held which may, notwithstanding compliance with the other provisions of this Bond Indenture, the Loan Agreement and the Tax Exemption Agreement, result in constituting the Series 2014A Bonds "arbitrage bonds" within the meaning of such term as used in Section 31 Packet Pg. 57 148 of the Code. The Issuer further covenants and agrees that it will comply with and take all actions required by the Tax Exemption Agreement. 32 Packet Pg. 58  ARTICLE VII EVENTS OF DEFAULT AND REMEDIES SECTION 7.1. EVENTS OF DEFAULT. Each of the following events is hereby declared an "event of default:" (a) payment of any installment of interest on any of the Bonds (other than Borrower Bonds) shall not be made when the same shall become due and payable; or (b) payment of the principal of or the redemption premiums, if any, on any of the Bonds (other than Borrower Bonds) shall not be made when the same shall become due and payable, either at maturity, by proceedings for redemption or through failure to make any payment to any Fund hereunder or otherwise; or (c) the Issuer shall for any reason be rendered incapable of fulfilling its obligations hereunder; or (d) an order or decree shall be entered, appointing a receiver, receivers, custodian or custodians for any of the revenues of the Issuer, or approving a petition filed against the Issuer seeking reorganization of the Issuer under the federal bankruptcy laws or any other similar law or statute of the United States of America or any state thereof, or if any such order or decree, having been entered without the consent or acquiescence of the Issuer, shall not be vacated or discharged or stayed on appeal within sixty (60) days after the entry thereof; or (e) any proceeding shall be instituted, with the consent or acquiescence of the Issuer, or any plan shall be entered into by the Issuer, for the purpose of effecting a compromise between the Issuer and its creditors or for the purpose of adjusting the claims of such creditors pursuant to any federal or State statute now or hereafter enacted, if the claims of such creditors are under any circumstances payable from any part or all of the trust estate, including money derived by the Issuer under this Bond Indenture or the Loan Agreement (other than Unassigned Rights); or (f) the Issuer (i) files a petition in bankruptcy under the applicable title of the United States Code, as amended, (ii) makes an assignment for the benefit of its creditors, (iii) consents to the appointment of a receiver, custodian or trustee for itself or for the whole or any part of the trust estate, or (iv) is generally not paying its debts as such debts become due; or (g) (i) the Issuer is adjudged insolvent by a court of competent jurisdiction, (ii) on a petition in bankruptcy filed against the Issuer it is adjudged a bankrupt, or (iii) an order, judgment or decree is entered by any court of competent jurisdiction appointing, without the consent of the Issuer, a receiver, custodian or trustee of the Issuer or of the whole or any part of its property and any of the aforesaid adjudications, orders, judgments or decrees shall not be vacated or set aside or stayed within sixty (60) days from the date of entry thereof; or (h) the Issuer shall file a petition or answer seeking reorganization or any arrangement under the federal bankruptcy laws or any other applicable law or statute of the United States of America or any state thereof; or 33 Packet Pg. 59  (i) under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the Issuer or of the whole or any substantial part of its property, and such custody or control shall not be terminated within thirty (30) days from the date of assumption of such custody or control; or (j) any event of default under the Loan Agreement shall occur and such event of default shall be continuing from and after the date the Issuer (or the Bond Trustee, as assignee of the Issuer) is entitled under the Loan Agreement to declare all amounts under the Loan Agreement to be immediately due and payable; or (k) the Issuer shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Bonds or in this Bond Indenture or in any indenture supplemental hereto on the part of the Issuer to be performed, and such default shall continue for thirty (30) days after written notice specifying such default and requiring the same to be remedied shall have been given to the Issuer, the Bond Trustee and the Borrower by the Bond Trustee, which notice the Bond Trustee may give in its discretion and must give at the request of the owners of not less than ten percent (10%) in aggregate principal amount of the Bonds then Outstanding hereunder; provided, that, if such default cannot with due diligence and dispatch be wholly cured within thirty (30) days but can be wholly cured, the failure of the Issuer to remedy such default within such 30-day period shall not constitute a default hereunder if the Issuer shall immediately upon receipt of such notice commence with due diligence and dispatch the curing of such default and, having so commenced the curing of such default, shall thereafter prosecute and complete the same with due diligence and dispatch; or (l) the Issuer, the Borrower or the Bond Trustee shall default in the performance of any covenant, condition, agreement or provision of the Tax Exemption Agreement, and such default shall continue for a period of thirty (30) days after written notice specifying such default and requiring the same to be remedied shall have been given to the party in default; provided, that if such default cannot with due diligence and dispatch be wholly cured within thirty (30) days but can be wholly cured, the failure of the Issuer, the Borrower or the Bond Trustee to remedy such default within such 30-day period shall not constitute a default hereunder if any of the foregoing shall immediately upon receipt of such notice commence with due diligence and dispatch the curing of such default and, having so commenced the curing of such default, shall thereafter prosecute and complete the same with due diligence and dispatch. SECTION 7.2. ACCELERATION. Anything in this Bond Indenture to the contrary notwithstanding, (a) upon the occurrence of an event of default specified in subsection (c) through (l) of Section 7.1 hereof the Bond Trustee may, without any action on the part of the Bondholders, or (b) upon the occurrence of an event of default specified in subsection (c) through (l) of Section 7.1 hereof and the written request of the owners of not less than 51% in principal amount of the Bonds then outstanding hereunder (exclusive of Borrower Bonds and any Bonds the registered owner of which is the Issuer), and upon being indemnified to its satisfaction as provided in Section 8.1(l) hereof, the Bond Trustee shall, or (c) upon the occurrence and continuance of an event of default specified in subsection (a) or (b) of Section 7.1 hereof, the Bond Trustee shall, within each such case by notice in writing delivered to the Issuer and the Borrower, declare the entire principal amount of the Bonds then outstanding hereunder and the interest accrued thereon immediately due and payable, and the entire principal 34 Packet Pg. 60 and interest shall thereupon become and be immediately due and payable, subject, however, to the provisions of Section 7.10 hereof with respect to waivers of events of default. The Bond Trustee shall give notice thereof by first class mail, postage prepaid, to all owners of Outstanding Bonds; provided, however, that the giving of such notice shall not be considered a precondition to the Bond Trustee declaring the entire principal amount of the Bonds then outstanding and the interest accrued thereon immediately due and payable. The Bonds shall cease to accrue interest on the date of acceleration if they are paid on such date. SECTION 7.3. REMEDIES; RIGHTS OF BONDHOLDERS. (a) Upon the occurrence of any event of default the Bond Trustee may take whatever action at law or in equity it deems necessary or desirable (i) to collect any amounts then due under this Bond Indenture, the Bonds or the Loan Agreement, (ii) to enforce performance of any obligation, agreement or covenant of the Issuer under this Bond Indenture or the Bonds, of the Borrower under the Loan Agreement, of a guarantor under any guaranty given with respect to any Bond or of the grantor of any other collateral given to secure the payment of the Bonds, or (iii) to otherwise enforce any of its rights. (b) If an event of default shall have occurred, and if it shall have been requested to do so by the holders of fifty-one percent (51%) in aggregate principal amount of the Bonds outstanding, and shall have been indemnified as provided in 8.1(l) hereof, the Bond Trustee shall be obligated to exercise such one or more of the rights and powers conferred by this Section as the Bond Trustee shall deem most expedient in the interests of the holders of the Bonds; provided, however, that the Bond Trustee shall have the right to decline to comply with any such request if the Bond Trustee shall be advised by counsel (who may be its own counsel) that the action so requested may not lawfully be taken or the Bond Trustee in good faith shall determine that such action would be unjustly prejudicial to the holders of the Bonds not parties to such request or would subject the Bond Trustee to personal liability. (c) No remedy by the terms of this Bond Indenture conferred upon or reserved to the Bond Trustee (or to the holders of the Bonds) is intended to be exclusive of any other remedy, but each and every such remedy shall be cumulative and shall be in addition to any other remedy given to the Bond Trustee or to the holders of the Bonds hereunder now or hereafter existing at law or in equity or by statute. (d) No delay or omission to exercise any right or power accruing upon any default or event of default shall impair any such right or power or shall be construed to be a waiver of any such default or event of default, or acquiescence therein; and every such right and power may be exercised from time to time and as often as may be deemed expedient. (e) No waiver of any default or event of default, hereunder, whether by the Bond Trustee, the holders of the Bonds, shall extend to or shall affect any subsequent default or event of default or shall impair any rights or remedies consequent thereon. SECTION 7.4. DIRECTION OF PROCEEDINGS BY HOLDERS. The holders of not less than a majority in aggregate principal amount of the Bonds then outstanding shall have the right, at any time, by an instrument or instruments in writing executed and 35 Packet Pg. 61 delivered to the Bond Trustee, to direct the method and place of conducting all proceedings to be taken in connection with the enforcement of the terms and conditions of this Bond Indenture, including enforcement of the rights of the Issuer under the Loan Agreement (other than Unassigned Rights) or for the appointment of a receiver or any other proceedings hereunder; provided that such direction shall be in accordance with the provisions of law and of this Bond Indenture. SECTION 7.5. APPOINTMENT OF RECEIVERS. Upon the occurrence of an event of default, and upon the filing of a suit or other commencement of judicial proceedings to enforce the rights of the Bond Trustee and the holders of Bonds under this Bond Indenture, the Bond Trustee shall be entitled, as a matter of right, to the appointment of a receiver or receivers of the revenues, issues, payments and profits pledged hereby, pending such proceedings, with such powers as the court making such appointment shall confer. SECTION 7.6. APPLICATION OF MONEYS. (a) Subject to the provisions of Section 4.1 hereof, all moneys received by the Bond Trustee, by any receiver or by any Bondholder pursuant to any right given or action taken under the provisions of this Article VII shall, after payment of the costs and expenses of the proceedings resulting in the collection of such moneys and of the expenses, including legal fees and expenses, liabilities and advances incurred or made by the Bond Trustee, be deposited in the Bond Sinking Fund, and all moneys so deposited during the continuance of an event of default (other than moneys for the payment of Bonds which have previously matured or otherwise become payable prior to such event of default or for the payment of interest due prior to such event of default), together with all moneys in the Funds maintained by the Bond Trustee under Articles III and IV hereof, shall be applied as follows: (i) Unless the principal of all the Bonds shall have become or shall have been declared due and payable, all such moneys shall be applied: First: To the payment of amounts, if any, payable pursuant to the Tax Exemption Agreement for rebate; Second: To the payment to the Persons entitled thereto of all installments of interest then due on the Bonds, in the order of the maturity of the installments of such interest, and, if the amount available shall not be sufficient to pay in full any particular installment, then to the payment ratably, according to the amounts due on such installment, to the Persons entitled thereto, without any discrimination or privilege; and Third: To the payment to the Persons entitled thereto of the unpaid principal of any of the Bonds which shall have become due (other than the Bonds called for redemption for the payment of which moneys are held pursuant to the provisions of this Bond Indenture), and, if the amount available shall not be sufficient to pay in full the Bonds, then to the payment ratably, according to the amount of principal due to the Persons entitled thereto, without any discrimination or privilege. 36 Packet Pg. 62  (ii) If the principal of all the Bonds shall have become due or shall have been declared due and payable, all such moneys shall be applied: First: To the payment of amounts, if any, payable pursuant to the Tax Exemption Agreement for rebate; and Second: To the payment of the principal and interest then due and unpaid upon the Bonds, without preference or priority of principal over interest or of interest over any other installment of interest, or of any Bond over any other Bond, ratably, according to the amounts due respectively for principal and interest, to the Persons entitled thereto without any discrimination or privilege. (iii) If the principal of all the Bonds shall have been declared due and payable, and if such declaration shall thereafter have been rescinded and annulled under the provisions of this Article, then, subject to the provisions of paragraph (b) of this Section, in the event that the principal of all the Bonds shall later become due or be declared due and payable, the moneys shall be applied in accordance with the provisions of paragraph (a) of this Section. (b) Whenever moneys are to be applied by the Bond Trustee pursuant to the provisions of this Section, such moneys shall be applied by it at such times, and from time to time, as the Bond Trustee shall determine, having due regard for the amount of such moneys available for application and the likelihood of additional moneys becoming available for such application in the future. Whenever the Bond Trustee shall apply such moneys, it shall fix the date (which shall be an Interest Payment Date unless it shall deem another date more suitable) upon which such application is to be made and upon such date interest on the amounts of principal to be paid on such date shall cease to accrue. The Bond Trustee shall give notice of the deposit with it of any such moneys and of the fixing of any such date and of the Special Record Date in accordance with Section 2.2(g) hereof 10 days prior to the Special Record Date. The Bond Trustee shall not be required to make payment to the holder of any unpaid Bond until such Bond shall be presented to the Bond Trustee for appropriate endorsement or for cancellation if fully paid. (c) Whenever all Bonds and interest thereon have been paid under the provisions of this Section 7.6 and all expenses and charges of the Bond Trustee have been paid, any balance remaining shall be paid to the Persons entitled to receive the same and then to the Borrower. SECTION 7.7. REMEDIES VESTED IN BOND TRUSTEE. All rights of action, including the right to file proofs of claim under this Bond Indenture or under any of the Bonds, may be enforced by the Bond Trustee without the possession of any of the Bonds or the production thereof in any trial or other proceedings relating thereto, and any such suit or proceeding instituted by the Bond Trustee shall be brought in its name as Bond Trustee without the necessity of joining as plaintiffs or defendants any holders of the Bonds, and any recovery of judgment shall be for the equal benefit of the holders of the Outstanding Bonds. SECTION 7.8. RIGHTS AND REMEDIES OF BONDHOLDERS. No holder of any Bond shall have any right to institute any suit, action or proceedings in equity or at law for 37 Packet Pg. 63 the enforcement of this Bond Indenture or for the execution of any trust hereof or for the appointment of a receiver or any other remedy hereunder, unless a default shall have become an event of default and the holders of not less than twenty-five percent (25%) in aggregate principal amount of the Bonds then outstanding shall have made written request to the Bond Trustee and shall have offered it reasonable opportunity either to proceed to exercise the powers hereinbefore granted or to institute such action, suit or proceeding in its own name, and unless also they have offered to the Bond Trustee indemnity as provided in Section 8.1, and unless the Bond Trustee shall thereafter fail or refuse to exercise the power hereinbefore granted, or to institute such action, suit or proceeding in its own name; and such notification, request and offer of indemnity are hereby declared in every case at the option of the Bond Trustee to be conditions precedent to the execution of the powers and trusts of this Bond Indenture and to any action or cause of action for the enforcement of this Bond Indenture, or for the appointment of a receiver or for any other remedy hereunder; it being understood and intended that no one or more holders of the Bonds shall have any right in any manner whatsoever to affect, disturb or prejudice the lien of this Bond Indenture by its, his, her or their action or to enforce any right hereunder except in the manner herein provided, and that all proceedings at law or in equity shall be instituted, had and maintained in the manner herein provided and for the equal benefit of the holders of all Bonds outstanding. Nothing in this Bond Indenture contained shall, however, affect or impair the right of any Bondholder to enforce the payment of the principal of and interest on any Bond at and after the maturity thereof, or the obligation of the Issuer to pay the principal of and interest on each of the Bonds issued hereunder to the respective holders thereof at the time and place, from the source and in the manner herein and in said Bonds expressed. SECTION 7.9. TERMINATION OF PROCEEDINGS. In case the Bond Trustee shall have proceeded to enforce any right under this Bond Indenture by the appointment of a receiver, or otherwise, and such proceedings shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Bond Trustee, then and in every case the Issuer and the Bond Trustee shall, subject to any determination in such proceeding, be restored to their former positions and rights hereunder with respect to the property pledged and assigned hereunder, and all rights, remedies and powers of the Bond Trustee shall continue as if no such proceedings had been taken. SECTION 7.10. WAIVER OF EVENTS OF DEFAULT. The Bond Trustee may, except with respect to defaults described in (1) below, waive any event of default hereunder and its consequences and rescind any declaration of maturity of principal, and shall do so, (1) upon written request of the owners of at least a majority in aggregate principal amount of all the Bonds outstanding in respect of which default in the payment of principal when due (whether by mandatory redemption through the Bond Sinking Fund or at the dates of maturity specified therein) and/or interest when due exists, or (2) upon written request of the owners of at least fifty-one percent (51%) in aggregate principal amount of all the Bonds outstanding in the case of any other event of default. The foregoing notwithstanding, in no event shall there be waived (a) any event of default in the payment of the principal of any Outstanding Bonds when due whether by mandatory redemption through the Bond Sinking Fund or at the dates of maturity specified therein, or (b) any default in the payment when due of the interest on any such Bonds unless prior to such waiver or rescission all arrears of interest, with interest thereon (to the extent permitted by law) at the rate borne by the Bonds in respect of which such default shall have occurred on overdue installments of interest or all arrears of payments of principal when due 38 Packet Pg. 64 (other than as a result of acceleration), as the case may be, and all expenses of the Bond Trustee and any Paying Agent in connection with such default shall have been paid or provided for and in case of any such waiver or rescission or in case any proceeding taken by the Bond Trustee on account of any such default shall have been discontinued or abandoned or determined adversely, then and in every such case the Issuer, the Bond Trustee and the Bondholders shall, subject to any determination in such proceeding, be restored to their former positions and rights hereunder respectively, but no such waiver or rescission shall extend to any subsequent or other default, or impair any right consequent thereon. SECTION 7.11. BORROWER'S RIGHTS OF POSSESSION AND USE OF PROPERTY. So long as the Borrower is in full compliance with the terms and provisions of the Loan Agreement, it shall be suffered and permitted to possess, use and enjoy its property and appurtenances thereto free of claims hereunder of the Issuer or the Bond Trustee. SECTION 7.12. WAIVER OF REDEMPTION; EFFECT OF SALE OF TRUST ESTATE. The Issuer, to the extent permitted by law, shall not claim any rights under any stay, valuation, exemption or extension law, and hereby waives any right of redemption which it may have in respect of property of the Borrower. Upon the institution of any foreclosure proceedings or upon any sale of the property of the Borrower to satisfy amounts owing under the Loan Agreement, or any acceleration of the maturity of the principal of all Bonds then outstanding hereunder, if not previously due and payable, such Bonds shall become immediately due and payable. SECTION 7.13. NOTICE OF DEFAULT. In the event of any default hereunder, the Bond Trustee will promptly give written notice thereof to the Issuer and the Borrower, setting forth the nature of such default. 39 Packet Pg. 65  ARTICLE VIII THE BOND TRUSTEE SECTION 8.1. ACCEPTANCE OF THE TRUSTS. The Bond Trustee accepts and agrees to execute the trusts imposed upon it by this Bond Indenture, but only upon the terms and conditions set forth herein. The Bond Trustee, prior to the occurrence of an event of default and after the curing of all events of default which may have occurred, undertakes to perform such duties and only such duties as are specifically set forth in this Bond Indenture, and no implied covenants or obligations should be read into this Bond Indenture against the Bond Trustee. In case an event of default hereunder has occurred and is continuing, the Bond Trustee shall exercise such of the rights and powers vested in it by this Bond Indenture and shall use the same degree of care as a prudent person would exercise or use in the circumstances in the conduct of such person's own affairs. The Bond Trustee agrees to perform such trusts only upon and subject to the following expressed terms and conditions: (a) The Bond Trustee may execute any of the trusts or powers hereof and perform any of its duties by or through attorneys, agents, receivers or employees, and shall not be responsible for the misconduct or negligence of the same appointed in accordance with the standard specified above, and shall be entitled to advice of counsel concerning all matters of trusts hereof and duties hereunder, and may in all cases pay such reasonable compensation to any attorney, agent, receiver or employee retained or employed by it in connection herewith. The Bond Trustee may act upon the opinion or advice of an attorney, surveyor, engineer or accountant selected by it in the exercise of reasonable care or, if selected or retained by the Issuer, approved by the Bond Trustee in the exercise of such care. The Bond Trustee shall not be responsible for any loss or damage resulting from any action or inaction based on its good faith reliance upon such opinion or advice. (b) The Bond Trustee shall not be responsible for any recital herein, or in the Bonds (except with respect to the certificate of the Bond Trustee endorsed on the Bonds), or for the investment of moneys as herein provided (except that no investment shall be made except in accordance with Section 4.4 hereof), or for the recording or rerecording, filing or re-filing of this Bond Indenture, or any supplement or amendment thereto, or the filing of financing statements, or for the validity of the execution by the Issuer of this Bond Indenture, or of any supplemental indentures or instruments of further assurance, or for the sufficiency of the security for the Bonds issued hereunder or intended to be secured hereby, or for the value or title of the property herein conveyed or otherwise as to the maintenance of the security hereof. The Bond Trustee may (but shall be under no duty to) require of the Issuer and the Borrower full information and advice as to the performance of the covenants, conditions and agreements in the Loan Agreement and shall make its best efforts, but without any obligation, to advise the Issuer and the Borrower of any default known to the Bond Trustee. Except as otherwise provided in Section 8.4 hereof, the Bond Trustee shall have no obligation to perform any of the duties of the Issuer under the Loan Agreement. (c) The Bond Trustee shall not be accountable for the use or application by the Issuer or the Borrower of any of the Bonds or the proceeds thereof or for the use or application of any money paid over by the Bond Trustee in accordance with the provisions of this Bond Indenture 40 Packet Pg. 66 or for the use and application of money received by any Paying Agent (except when the Bond Trustee acts as Paying Agent). The Bond Trustee may become the owner of Bonds secured hereby with the same rights it would have if not Bond Trustee. (d) The Bond Trustee shall be protected in acting upon any notice, order, requisition, request, consent, certificate, order, opinion (including an opinion of Independent Counsel), affidavit, letter, telegram or other paper or document in good faith deemed by it to be genuine and correct and to have been signed or sent by the proper person or persons. The Bond Trustee shall be protected in relying upon any telephonic or other electronic communication deemed by it in good faith to be genuine and correct and to be from the proper person or persons whenever this Bond Indenture permits such telephonic or other electronic communication. Any action taken by the Bond Trustee pursuant to this Bond Indenture upon the request or authority or consent of any person who at the time of making such request or giving such authority or consent is the owner of any Bond, shall be conclusive and binding upon all future owners of the same Bond and upon Bonds issued in exchange therefor or in place thereof. (e) As to the existence or non-existence of any fact or as to the sufficiency of validity of any instrument, paper or proceedings, the Bond Trustee shall be entitled to rely upon a certificate signed on behalf of the Issuer by the Chairman or Vice Chairman of its Board of County Commissioners or its Clerk or Deputy Clerk as sufficient evidence of the facts therein contained and prior to the occurrence of a default of which the Bond Trustee has been notified as provided in subsection (g) of this Section, or of which by said subsection it is deemed to have notice, shall also be at liberty to accept a similar certificate to the effect that any particular dealing, transaction or action is necessary or expedient, but may at its discretion secure such further evidence deemed necessary or advisable, but shall in no case be bound to secure the same. The Bond Trustee may accept a certificate of the Clerk or Deputy Clerk of the Issuer under its seal to the effect that a resolution in the form therein set forth has been adopted by the Issuer as conclusive evidence that such resolution has been duly adopted, and is in full force and effect. (f) The permissive right of the Bond Trustee to do things enumerated in this Bond Indenture shall not be construed as a duty and the Bond Trustee shall not be answerable for other than its negligence or willful misconduct. (g) The Bond Trustee shall not be required to take notice or be deemed to have notice of any default hereunder except failure to cause to be made any of the payments to the Bond Trustee required to be made by Article IV unless the Bond Trustee shall be specifically notified in writing of such default by the Issuer or by the holders of at least fifty-one percent (51%) in aggregate principal amount of all Bonds then outstanding, and all notices or other instruments required by this Bond Indenture to be delivered to the Bond Trustee must, in order to be effective, be delivered at the designated corporate trust office of the Bond Trustee, and in the absence of such notice so delivered, the Bond Trustee may conclusively assume there is no default except as aforesaid. (h) The Bond Trustee shall not be personally liable for any debts contracted or for damages to persons or to personal property injured or damaged, or for salaries or nonfulfillment of contracts during any period in which it may be in possession of or managing any property. 41 Packet Pg. 67  (i) At any and all reasonable times, and upon reasonable prior notice, the Bond Trustee and its duly authorized agents, attorneys, experts, engineers, accountants and representatives shall have the right fully to inspect any and all of the System, including all books, papers and records of the Issuer pertaining to the System and the Bonds, and to take such memoranda from and in regard thereto as may be desired. (j) The Bond Trustee shall not be required to give any bond or surety in respect of the execution of the said trusts and powers or otherwise in respect of the premises. (k) Notwithstanding anything elsewhere in this Bond Indenture contained, the Bond Trustee shall have the right, but shall not be required, to demand, in respect of the authentication of any Bonds, the withdrawal of any cash, the release of any property, or any action whatsoever within the purview of this Bond Indenture, any showings, certificates, opinions, appraisals or other information, or corporate action or evidence thereof, in addition to that by the terms hereof required as a condition of such action by the Bond Trustee deemed desirable for the purpose of establishing the right of the Issuer to the authentication of any Bonds, the withdrawal of any cash, the release of any property or the taking of any other action by the Bond Trustee. (l) Before taking any action under Article VII other than making payments of principal, interest and purchase price on the Bonds as they become due, including causing an acceleration when required by this Bond Indenture, the Bond Trustee may require that a satisfactory indemnity bond be furnished for the reimbursement of all expenses (including reasonable attorneys fees) which it may incur and to protect it against all liability, except liability which is adjudicated to have resulted from its negligence or willful misconduct in connection with any action so taken. (m) All moneys received by the Bond Trustee or any Paying Agent shall, until used or applied or invested as provided in this Bond Indenture, be held in trust for the purposes for which they were received but need not be segregated from other funds except to the extent required by law or by this Bond Indenture. Neither the Bond Trustee nor any Paying Agent shall be under any liability for interest on any moneys received hereunder except as may be otherwise agreed upon. SECTION 8.2. FEES, CHARGES AND EXPENSES OF BOND TRUSTEE AND ANY ADDITIONAL PAYING AGENT. The Bond Trustee shall be entitled to payment and/or reimbursement for reasonable fees and for its services, including its services as Paying Agent and Bond Registrar, and all advances, counsel fees and other expenses reasonably and necessarily made or incurred by the Bond Trustee in connection with such services. Any additional Paying Agent shall be entitled to payment and reimbursement for its reasonable fees and charges as additional Paying Agent for the Bonds. Upon an event of default, but only upon an event of default, the Bond Trustee and any additional Paying Agent shall have a right of payment prior to payment on account of interest or principal of or premium, if any, on any Bond for the foregoing advances, fees, costs, and expenses incurred; provided that the Bond Trustee and any such Paying Agent shall not have a prior right to payment or claim therefor against (a) moneys held to pay redemption price, including premium, of the Bonds previously called for redemption, or (b) moneys or obligations deposited with or paid to the Bond Trustee for the 42 Packet Pg. 68 redemption or payment of Bonds which are deemed to have been paid in accordance with Article XI hereof. The Issuer shall require the Borrower, pursuant to the Loan Agreement, and the Borrower shall indemnify and hold harmless the Bond Trustee against any liabilities which the Bond Trustee may incur in the exercise and performance of its powers and duties hereunder and under any other agreement referred to herein which are not due to the Bond Trustee's negligence or willful misconduct, and for any reasonable fees and expenses of the Bond Trustee to the extent funds are not available under this Bond Indenture for the payment thereof. The rights of the Bond Trustee under this Section 8.2 shall survive the payment in full of the Bonds and the discharge of this Bond Indenture. When the Bond Trustee incurs expenses or renders services after an event of default specified in Section 7.1 occurs, the reasonable expenses and the compensation for services (including the reasonable fees and expenses of its agents and counsel) are intended to constitute expenses of administration under applicable bankruptcy law. SECTION 8.3. NOTICE TO THE ISSUER AND BONDHOLDERS IF DEFAULT OCCURS. If a default occurs of which the Bond Trustee is by subsection (g) of Section 8.1 hereof required to take notice or if notice of default be given as in said subsection (g) provided, then the Bond Trustee shall give written notice thereof by mail to the Issuer and the Borrower and the registered owners of all Bonds then outstanding as shown on the Bond Register. SECTION 8.4. INTERVENTION BY BOND TRUSTEE. In any judicial proceeding to which the Issuer or the Borrower is or are a party and which in the opinion of the Bond Trustee and its counsel has a substantial bearing on the interests of the registered owners of the Bonds, the Bond Trustee may intervene on behalf of the Bondholders and, subject to the provisions of Section 8.1(l), shall do so if requested in writing by the registered owners of at least fifty-one percent (51%) in aggregate principal amount of all Bonds then outstanding. The rights and obligations of the Bond Trustee under this Section are subject to the approval of a court of competent jurisdiction. SECTION 8.5. SUCCESSOR BOND TRUSTEE. Any corporation or association into which the Bond Trustee may be converted or merged, or with which it may be consolidated, or to which it may sell or transfer its corporate trust business and assets as a whole or substantially as a whole, or any corporation or association resulting from any such conversion, sale, merger, consolidation or transfer to which it is a party, provided such corporation or association is otherwise eligible under Section 8.6 hereof, shall be and become the successor Bond Trustee hereunder and vested with all of the title to the whole property of the trust estate and all the trusts, powers, discretions, immunities, privileges and all other matters as was its predecessor, without the execution or filing of any instrument or any further act, deed or conveyance on the part of any of the parties hereto, anything herein to the contrary notwithstanding. SECTION 8.6. BOND TRUSTEE REQUIRED; ELIGIBILITY. There shall at all times be a Bond Trustee hereunder which shall be a commercial bank or trust company 43 Packet Pg. 69 operating within the State organized under the laws of the United States of America or the State or another state, authorized to exercise corporate trust powers, subject to supervision or examination by federal or state authorities, and having a reported combined capital and surplus of not less than $50,000,000 or assets under administration of not less than $200,000,000. If at any time the Bond Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner provided in Section 8.7 hereof. No resignation or removal of the Bond Trustee and no appointment of a successor Bond Trustee shall become effective until the successor Bond Trustee has accepted its appointment under Section 8.10 hereof. SECTION 8.7. RESIGNATION BY THE BOND TRUSTEE. The Bond Trustee and any successor Bond Trustee may at any time resign from the trusts hereby created by giving written notice to the Issuer and the Borrower and by registered or certified mail to each registered owner of the Bonds then outstanding, as shown by the Bond Register. Such notice to the Issuer and the Borrower may be served personally or sent by registered or certified mail. SECTION 8.8. REMOVAL OF THE BOND TRUSTEE. The Bond Trustee may be removed at any time, by an instrument or concurrent instruments in writing delivered to the Bond Trustee and the Issuer, and signed by the registered owners of not less than a majority in aggregate principal amount of the Bonds then outstanding. So long as no event of default has occurred and is continuing under this Bond Indenture or the Loan Agreement and no event shall have occurred which with the passage of time or the giving of notice or both would become such an event of default under this Bond Indenture or the Loan Agreement, the Bond Trustee may also be removed at any time by an instrument in writing signed by the Issuer, upon the written request of the Borrower, and delivered to the Bond Trustee. The foregoing notwithstanding, the Bond Trustee may not be removed by the Issuer unless written notice of the delivery of such instrument or instruments signed by the Issuer is mailed to the owners of all Bonds outstanding under this Bond Indenture, which notice indicates the Bond Trustee will be removed for cause (including maintaining non-competitive fees) and replaced by the successor trustee named in such notice, such removal and replacement to become effective on the 90th day next succeeding the date of such notice, unless the owners of not less than 10% in aggregate principal amount of such Bonds then outstanding under this Bond Indenture shall object in writing to such removal and replacement. Such notice shall be mailed by first class mail, postage prepaid, to the owners of all such Bonds then outstanding at the address of such owners then shown on the Bond Register. SECTION 8.9. APPOINTMENT OF SUCCESSOR BOND TRUSTEE BY THE BONDHOLDERS; TEMPORARY BOND TRUSTEE. In case the Bond Trustee hereunder shall resign or be removed, or be dissolved, or shall be in the process of dissolution or liquidation, or otherwise becomes incapable of acting hereunder, or in case it shall be taken under the control of any public officer or officers, or of a receiver appointed by a court, a successor may be appointed by the owners of a majority in aggregate principal amount of the Bonds then outstanding by an instrument or concurrent instruments in writing signed by such registered owners, or by their attorneys in fact, duly authorized; provided, nevertheless, that in case of such vacancy the Issuer by an instrument executed and signed by its Clerk or Deputy Clerk, or other designated officer of the Issuer under its seal, may appoint a temporary Bond Trustee to fill such vacancy until a successor Bond Trustee shall be appointed by the 44 Packet Pg. 70 Bondholders in the manner above provided; and any such temporary Bond Trustee so appointed by the Issuer shall immediately and without further action be superseded by the successor Bond Trustee so appointed by such Bondholders. The Issuer agrees to follow the direction of the Borrower in appointing a temporary Bond Trustee unless the Issuer shall have a reasonable objection to the entity selected by the Borrower. If a successor Bond Trustee has not been appointed or has not accepted such appointment within thirty days of notice of resignation or removal of the Bond Trustee, the Bond Trustee may apply to a court of competent jurisdiction for the appointment of a successor Bond Trustee, and the costs, expenses and attorney's fees which are incurred in connection with such proceeding shall be paid as provided in Section 8.2 hereof. SECTION 8.10. CONCERNING ANY SUCCESSOR BOND TRUSTEES. Every successor Bond Trustee appointed hereunder shall execute, acknowledge and deliver to its predecessor and also to the Issuer an instrument in writing accepting such appointment hereunder, and thereupon such successor, without any further act, deed or conveyance, shall become fully vested with all the estates, properties, rights, powers, trusts, duties and obligations of its predecessor; but such predecessor shall, nevertheless, on the Written Request of the Issuer, or of its successor, execute and deliver an instrument transferring to such successor Bond Trustee all the estates, properties, rights, powers and trusts of such predecessor hereunder and under the Tax Exemption Agreement; and every predecessor Bond Trustee shall deliver all securities and moneys held by it as Bond Trustee hereunder to its successor. Should any instrument in writing from the Issuer be required by any successor Bond Trustee for more fully and certainly vesting in such successor the estate, rights, powers and duties hereby vested or intended to be vested in the predecessor, any and all such instruments in writing shall, on request, be executed, acknowledged and delivered by the Issuer. The resignation of any Bond Trustee and the instrument or instruments removing any Bond Trustee and appointing a successor hereunder, together with all other instruments provided for in this Article, shall be filed and/or recorded by the successor Bond Trustee in each recording office, if any, where this Bond Indenture shall have been filed and/or recorded. Notice of the appointment of any successor Bond Trustee hereunder shall be given by such successor Bond Trustee to each Rating Agency at such time maintaining a rating with respect to the Bonds pursuant to Section 13.5 hereof. SECTION 8.11. BOND TRUSTEE PROTECTED IN RELYING UPON RESOLUTION, ETC. The resolutions, opinions, certificates and other instruments provided for in this Bond Indenture may be accepted by the Bond Trustee as conclusive evidence of the facts and conclusions stated therein and shall be full warrant, protection and authority to the Bond Trustee for the withdrawal of cash hereunder, upon receipt of written consent from the registered owners of at least fifty-one percent (51%) in aggregate principal amount of all Bonds then Outstanding. SECTION 8.12. SUCCESSOR BOND TRUSTEE AS BOND TRUSTEE OF FUNDS, PAYING AGENT AND BOND REGISTRAR. In the event of a change in the office of the Bond Trustee, the predecessor Bond Trustee which has resigned or been removed shall cease to be Bond Trustee of the Bond Sinking Fund, Project Fund, Redemption Fund, Expense Fund and any other trust funds provided hereunder and shall cease to be the Bond Registrar and 45 Packet Pg. 71 Paying Agent for the principal of, premium, if any, and interest on the Bonds, and the successor Bond Trustee shall become such Bond Trustee, Bond Registrar and Paying Agent unless a separate Paying Agent or Agents are appointed by the Issuer in connection with the appointment of any successor Bond Trustee. SECTION 8.13. PAYING AGENTS; APPOINTMENT AND ACCEPTANCE OF DUTIES; REMOVAL. (a) The Bond Trustee is hereby designated and agrees to act as principal Paying Agent and as Bond Registrar for and in respect of the Bonds. (b) The Issuer may appoint one or more additional Paying Agents for the Bonds. Any such Paying Agent shall be a commercial bank with trust powers or trust company organized under the laws of the United States of America or one of the states thereof. Each Paying Agent other than the Bond Trustee shall signify its acceptance of the duties and obligations imposed upon it by this Bond Indenture by executing and delivering to the Issuer and the Bond Trustee a written acceptance thereof. The Issuer may remove any Paying Agent other than the Bond Trustee and any successors thereto, and appoint a successor or successors thereto; provided that any such Paying Agent designated by the Issuer shall continue to be a Paying Agent of the Issuer for the purpose of paying the principal of, premium, if any, and interest on the Bonds until the designation of a successor as such Paying Agent. Each Paying Agent is hereby authorized to pay or redeem Bonds when duly presented to it for payment or redemption, which Bonds shall thereafter be delivered to the Bond Trustee for cancellation. 46 Packet Pg. 72  ARTICLE IX SUPPLEMENTAL INDENTURES SECTION 9.1. SUPPLEMENTAL INDENTURES NOT REQUIRING CONSENT OF BONDHOLDERS. The Issuer and the Bond Trustee may, without the consent of, or notice to, any of the Bondholders, enter into an indenture or indentures supplemental to this Bond Indenture, as shall not be inconsistent with the terms and provisions hereof, for any one or more of the following purposes: (a) to cure any ambiguity or formal defect or omission in this Bond Indenture; (b) to grant to or confer upon the Bond Trustee for the benefit of the Bondholders any additional rights, remedies, powers or authority that may lawfully be granted to or conferred upon the Bondholders and the Bond Trustee, or either of them; (c) to assign and pledge under this Bond Indenture additional revenues, properties or collateral; (d) to evidence the appointment of a separate bond trustee or the succession of a new bond trustee hereunder; (e) to modify, amend or supplement this Bond Indenture or any indenture supplemental hereto in such manner as to permit the qualification of this Bond Indenture under the Trust Indenture Act of 1939, as then amended, or any similar federal statute hereafter in effect or to permit the qualification of the Bonds for sale under the securities laws of any state of the United States of America; (f) to modify, amend or supplement this Bond Indenture or any indenture supplemental hereto in such manner as to permit the issuance of coupon Bonds of any Series hereunder and to permit the exchange of Bonds from fully registered form to coupon form and vice versa; (g) to provide for the refunding or advance refunding of the Bonds, including the right to establish and administer an escrow fund and to take related action in connection therewith; (h) to modify, amend or supplement this Bond Indenture or any indenture supplemental hereto in such manner as to permit certificated Bonds; (i) to modify, amend or supplement this Bond Indenture or any indenture supplemental hereto in such manner as to permit continued compliance with the Tax Exemption Agreement; (j) to modify, amend or supplement the provisions hereof in any other way which the Bond Trustee has determined (which determination may be based on such opinions of Independent Counsel and factual certificates as the Bond Trustee deems necessary) does not materially adversely affect the rights or interests of any Bondholder. The Bond Trustee shall be 47 Packet Pg. 73 entitled to rely upon an opinion of Bond Counsel in reaching the determination pursuant to this paragraph (j); or (k) to make necessary or advisable amendments or additions in connection with the issuance of Additional Bonds in accordance herewith, or with the incurrence of Additional Indebtedness in accordance with the Loan Agreement, which do not adversely affect the interests of the Bondholders. The Issuer and the Bond Trustee may not enter into an indenture or indentures supplemental to this Bond Indenture pursuant to paragraph (f) of this Section 9.1 unless the Issuer and the Bond Trustee shall have received an Opinion of Bond Counsel to the effect that the issuance of coupon Bonds will not adversely affect the validity of such Bonds or any exemption from federal income tax to which the interest on the Bonds would otherwise be entitled. If at any time the Borrower shall request the Issuer and the Bond Trustee to consent to any amendment pursuant to subsection (i) above, the Bond Trustee shall cause notice of the proposed execution of such amendment, change or modification to the Bond Indenture to be given to each Rating Agency then maintaining a rating on the Bonds by first class mail, postage prepaid, at least 10 days prior to the execution of such amendment, change or modification to the Bond Indenture, which notice shall include a copy of the proposed amendment, change or modification. In addition, if at any time the Borrower shall request the Issuer and the Bond Trustee to consent to any amendment pursuant to this Section, the Bond Trustee shall cause a copy of such amendment, change or modification to be mailed to each Rating Agency then maintaining a rating on the Bonds upon the execution and delivery of such amendment, change or modification. SECTION 9.2. SUPPLEMENTAL INDENTURES REQUIRING CONSENT OF BONDHOLDERS. In addition to supplemental indentures covered by Section 9.1 hereof and subject to the terms and provisions contained in this Section, and not otherwise, the holders of not less than a majority in aggregate principal amount of the Bonds which are outstanding hereunder at the time of the execution of such indenture or supplemental indenture shall have the right, from time to time, anything contained in this Bond Indenture to the contrary notwithstanding, to consent to and approve the execution by the Issuer and the Bond Trustee of such other indenture or indentures supplemental hereto as shall be deemed necessary and desirable by the Issuer for the purpose of modifying, altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in this Bond Indenture or any supplemental indenture; provided, however, that nothing in this Section or in Section 9.1 hereof contained shall permit, or be construed as permitting, (a) an extension of the stated maturity or reduction in the principal amount of, or reduction in the rate or extension of the time of paying of interest on, or reduction of any premium payable on the redemption of, any Bonds, without the consent of the holders of such Bonds, (b) a reduction in the amount or extension of the time of any payment required to be made to or from the Bond Sinking Fund provided herein, without the consent of the holders of all the Bonds at the time outstanding, (c) a reduction in the aggregate principal amount of Bonds the holders of which are required to consent to any such supplemental indenture, without the consent of the holders of all the Bonds at the time outstanding, or (d) the 48 Packet Pg. 74 modification of the rights, duties or immunities of the Bond Trustee without the written consent of the Bond Trustee. If at any time the Issuer shall request the Bond Trustee to enter into any such supplemental indenture for any of the purposes of this Section, the Bond Trustee shall, upon being satisfactorily indemnified with respect to expenses, cause notice of the proposed execution of such supplemental indenture to be mailed by registered or certified mail to the registered owners of the Bonds at their addresses as the same shall appear on the Bond Register. Such notice shall briefly set forth the nature of the proposed supplemental indenture and shall state that copies thereof are on file at the designated corporate trust office of the Bond Trustee for inspection by all Bondholders. The Bond Trustee shall not, however, be subject to any liability to any Bondholder by reason of its failure to mail such notice, and any such failure shall not affect the validity of such supplemental indenture when consented to and approved as provided in this Section. If the holders of not less than a majority in aggregate principal amount of the Bonds which are outstanding hereunder at the time of the execution of any such supplemental indenture shall have consented to and approved the execution thereof as herein provided, no holder of any Bond shall have any right to object to any of the terms and provisions contained therein, or the operation thereof, or in any manner to question the propriety of the execution thereof, or to enjoin or restrain the Bond Trustee or the Issuer from executing the same or from taking any action pursuant to the provisions thereof. Upon the execution of any such supplemental indenture as in this Section permitted and provided, this Bond Indenture shall be and be deemed to be modified and amended in accordance therewith. If at any time the Borrower shall request the Issuer and the Bond Trustee to consent to any amendment, change or modification of this Bond Indenture pursuant to this Section 9.2, the Bond Trustee shall cause notice of the proposed execution of such amendment, change or modification to this Bond Indenture to be given to each Rating Agency maintaining a rating on the Bonds in the manner provided in Section 13.5 hereof at least 10 days prior to the execution of such amendment, change or modification to this Bond Indenture, which notice shall include a copy of the proposed amendment, change or modification to this Bond Indenture. 49 Packet Pg. 75  ARTICLE X AMENDMENTS, ETC. TO BORROWER'S DOCUMENTS SECTION 10.1. AMENDMENTS TO THE BORROWER'S DOCUMENTS NOT REQUIRING CONSENT. The Issuer, the Borrower and the Bond Trustee may, without the consent of or notice to the holders of the Bonds, consent to any amendment, change or modification of the Loan Agreement as may be required (i) by the provisions of the Loan Agreement and this Bond Indenture, (ii) for the purpose of curing any ambiguity or formal defect or omission, (iii) for the purpose of complying with the provisions of the Tax Exemption Agreement, (iv) to make necessary or advisable amendments or additions in connection with the issuance of Additional Indebtedness in accordance with the Loan Agreement; or (v) in connection with any other change therein which, in the judgment of the Bond Trustee (which judgment may be based on such opinions of Independent Counsel and factual certificates as the Bond Trustee deems necessary), does not materially adversely affect the rights of the Bond Trustee or the owners of the Bonds; provided, however, that nothing in this Section 10.1 shall permit, or be construed as permitting, any amendment, change or modification of the Loan Agreement that may result in anything described in the lettered clauses of Section 9.2 hereof, without the consent of each Bondholder affected. SECTION 10.2. AMENDMENTS TO THE BORROWER'S DOCUMENTS REQUIRING CONSENT OF BONDHOLDERS. Except for the amendments, changes or modifications as provided in Section 10.1 hereof, neither the Issuer nor the Bond Trustee shall consent to any other amendment, change or modification of the Loan Agreement without the written approval or consent of the holders of not less than a majority in aggregate principal amount of the Bonds which are outstanding hereunder at the time of execution of any such amendment, change or modification; provided, however, that no such amendment, change or modification shall ever affect the obligation of the Borrower to make payments under the Loan Agreement as they become due and payable. If at any time the Issuer or the Borrower shall request the consent of the Bond Trustee to any such proposed amendment, change or modification of the Loan Agreement, the Bond Trustee shall, upon being satisfactorily indemnified with respect to expenses, cause notice of such proposed amendment, change or modification to be mailed in the same manner as provided by Section 9.2 hereof with respect to supplemental indentures. Such notice shall briefly set forth the nature of such proposed amendment, change or modification and shall state that copies of the instrument embodying the same are on file at the principal office of the Bond Trustee for inspection by all Bondholders. The Bond Trustee shall not, however, be subject to any liability to any Bondholder by reason of its failure to mail such notice, and any such failure shall not affect the validity of such amendment, change or modification when consented to and approved as provided in this Section. If the holders of not less than a majority in aggregate principal amount of the Bonds outstanding hereunder at the time of the execution of any such amendment, change or modification shall have consented to and approved the execution thereof as herein provided, no holder of any Bond shall have any right to object to any of the terms and provisions contained therein, or the operation thereof, or in any manner to question the propriety of the execution thereof, or to enjoin or restrain the Bond Trustee or the Issuer from executing the same or from taking any action pursuant to the provisions thereof. 50 Packet Pg. 76  If at any time the Borrower shall request the Issuer and the Bond Trustee to consent to any amendment, change or modification of the Loan Agreement pursuant to this Section 10.2, the Bond Trustee shall cause notice of the proposed execution of such amendment, change or modification to the Loan Agreement to be given to each Rating Agency maintaining a rating on the Bonds in the manner provided in Section 13.5 hereof at least 10 days prior to the execution of such amendment, change or modification to the Loan Agreement, which notice shall include a copy of the proposed amendment, change or modification to the Loan Agreement. 51 Packet Pg. 77  ARTICLE XI SATISFACTION OF THIS BOND INDENTURE SECTION 11.1. DEFEASANCE. If the Issuer shall pay or provide for the payment of all or a portion of all Bonds outstanding (including, for the purpose of this Article, any Bonds held by the Borrower) in any one or more of the following ways: (a) by paying or causing to be paid the principal of (including redemption premium, if any) and interest on all or a portion of the Bonds outstanding (the portion, which may be all, being referred to as the "Paid Bonds"), as and when the same become due and payable; (b) by delivering to the Bond Trustee, for cancellation by it, the Paid Bonds; or (c) by depositing with the Bond Trustee, in trust, cash and/or Government Obligations which are not prepayable or callable prior to the date the moneys therefrom are anticipated to be required in such amount as will provide funds sufficient to pay (i) the principal of and redemption premium, if any, on such Paid Bonds due upon the maturity or redemption of such Paid Bonds, as the case may be; (ii) interest on such Paid Bonds as the same becomes due and payable until the maturity or redemption of such Paid Bonds; and (iii) all amounts, if any, due the Issuer and the Bond Trustee. (d) If the Issuer shall also pay or cause to be paid all other sums payable hereunder by the Issuer with respect to such Paid Bonds, then and in that case this Bond Indenture and the estate and rights granted hereunder shall cease, determine and become null and void as to the Paid Bonds, and thereupon the Bond Trustee shall, upon Written Request of the Issuer, and upon receipt by the Bond Trustee, of an Officer's Certificate of the Borrower and an opinion of Independent Counsel, each stating that in the opinion of the signers all conditions precedent to the satisfaction and discharge of this Bond Indenture with respect to the Paid Bonds have been complied with, forthwith execute proper instruments acknowledging satisfaction of and discharging this Bond Indenture and each related lien with respect to the Paid Bonds. The satisfaction and discharge of this Bond Indenture with respect to the Paid Bonds shall be without prejudice to the rights of the Bond Trustee to charge and be reimbursed by the Borrower for any expenditures which it may thereafter incur in connection herewith or with respect to any Bonds that may remain Outstanding. All moneys, funds, securities, or other property remaining on deposit in the Expense Fund, Bond Sinking Fund, Project Fund or Redemption Fund or in any other fund or investment under this Bond Indenture (other than said Government Obligations or other moneys deposited in trust as above provided and amounts held pursuant to Section 13.2 hereof) with respect to the Paid Bonds shall, upon the full satisfaction of this Bond Indenture with respect to such Paid Bonds, forthwith be transferred, paid over and distributed to the Issuer and the Borrower, as their respective interests may appear or, in the event all Bonds Outstanding are not paid, retained for the benefit of the remainder of the Outstanding Bonds. The Issuer or the Borrower may at any time surrender to the Bond Trustee for cancellation by it any Bonds previously authenticated and delivered which the Issuer or the 52 Packet Pg. 78 Borrower may have acquired in any manner whatsoever, and such Bonds, upon such surrender and cancellation, shall be deemed to be paid and retired. SECTION 11.2. LIABILITY OF ISSUER NOT DISCHARGED. Upon the deposit with the Bond Trustee, in trust, at or before maturity, of money or Government Obligations in the necessary amount to pay or redeem all Outstanding Bonds (whether upon or prior to maturity or the redemption date of such Bonds), provided that if such Bonds are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as in Article V herein provided, or provisions satisfactory to the Bond Trustee shall have been made for the giving of such notice, and compliance with the other payment requirements of Section 11.1, the Bond Indenture may be discharged in accordance with the provisions hereof with respect to the Paid Bonds, but the liability of the Issuer in respect of such Bonds shall continue provided that the holders thereof shall thereafter be entitled to payment only out of the moneys or Government Obligations deposited with the Bond Trustee as aforesaid. SECTION 11.3. SELECTION OF DEFEASED BONDS. If less than all Bonds of a series or maturity are defeased as provided in Section 11.1, the Bonds of such series and maturity to be paid from the trust shall be selected by the Bond Trustee by lot by such method as shall provide for the selection of portions (in Authorized Denominations) of the principal of Bonds of such series and maturity of a denomination larger than the smallest Authorized Denomination. Such selection shall be made within seven days after such trust is established. This selection process shall be in lieu of the selection process otherwise provided with respect to redemption of Bonds. After such selection is made, Bonds that are to be paid from such trust (including Bonds issued in exchange for such Bonds pursuant to the transfer or exchange provisions of this Bond Indenture) shall be identified by a separate CUSIP number or other designation satisfactory to the Trustee. The Trustee shall notify Holders whose Bonds (or portions thereof) have been selected for payment from such trust and shall direct such Bondholders to surrender their Bonds to the Trustee in exchange for Bonds with the appropriate designation. The selection of Bonds for payment from such trust pursuant to this Section shall be conclusive and binding on the Issuer, the Borrower and the Bondholders. SECTION 11.4. WHEN REFUNDING IS NOT PERMITTED. None of the Bonds outstanding hereunder may be refunded as aforesaid nor may this Bond Indenture be discharged if under any circumstances such refunding would result in the loss of any exemption for purposes of federal income taxation to which interest on such Bonds would otherwise be entitled. As a condition precedent to the refunding of any Bonds outstanding hereunder, the Bond Trustee shall receive an Opinion of Bond Counsel to the effect that any exclusion from gross income of interest on any Outstanding tax-exempt Bonds would not be adversely affected by such refunding. 53 Packet Pg. 79  ARTICLE XII MANNER OF EVIDENCING OWNERSHIP OF BONDS SECTION 12.1. PROOF OF OWNERSHIP. Any request, direction, consent or other instrument provided by this Bond Indenture to be signed and executed by the Bondholders may be in any number of concurrent writings of similar tenor and may be signed or executed by such Bondholders in person or by any agent appointed in writing. Proof of the execution of any such request, direction or other instrument or of the writing appointing any such agent and of the ownership of Bonds, if made in the following manner, shall be sufficient for any of the purposes of this Bond Indenture and shall be conclusive in favor of the Bond Trustee and the Issuer, with regard to any action taken by them, or either of them, under such request or other instrument, namely: (a) The fact and date of the execution by any person of any such writing may be proved by the certificate of any officer in any jurisdiction who by law has power to take acknowledgments in such jurisdiction, that the person signing such writing acknowledged before him the execution thereof, or by the affidavit of a witness of such execution; and (b) The ownership of Bonds and the amounts and numbers of such Bonds and the date of holding the same shall be proved by the Bond Register. Any action taken or suffered by the Bond Trustee pursuant to any provision of this Bond Indenture, upon the request or with the assent of any Person who at the time is the registered owner of any Bond or Bonds shall be conclusive and binding upon all future owners of the same Bond or Bonds. In determining whether the owners of the required principal amount of Bonds outstanding have taken any action under this Bond Indenture, Borrower Bonds (unless all Bonds which are then outstanding, determined without regard to this Section 12.1, are Borrower Bonds) shall be disregarded and deemed not to be outstanding, except that for the purpose of determining whether the Bond Trustee shall be protected in relying on any such action, only such Bonds which the Bond Trustee knows are so owned shall be so disregarded. Bonds so owned which have been pledged in good faith may be regarded as outstanding if the pledgee establishes to the satisfaction of the Bond Trustee the pledgee's right so to act with respect to such Bonds and that the pledgee is not any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Borrower. In case of a dispute as to such right, any decision by the Bond Trustee taken upon the advice of counsel shall be full protection to the Bond Trustee. 54 Packet Pg. 80  ARTICLE XIII MISCELLANEOUS SECTION 13.1. LIMITATION OF RIGHTS. With the exception of rights herein expressly conferred, nothing expressed or mentioned in or to be implied from this Bond Indenture or the Bonds is intended or shall be construed to give to any person or company other than the parties hereto and the holders of the Bonds, any legal or equitable right, remedy or claim under or in respect to this Bond Indenture or any covenants, conditions and provisions herein contained; this Bond Indenture and all of the covenants, conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of the parties hereto and the holders of the Bonds as herein provided. SECTION 13.2. UNCLAIMED MONEYS. Any moneys deposited with the Bond Trustee by the Issuer in accordance with the terms and covenants of this Bond Indenture, in order to redeem or pay any Bond in accordance with the provisions of this Bond Indenture, and remaining unclaimed by the registered owner of the Bond for six (6) years after the date fixed for redemption or of maturity, as the case may be, shall, if the Issuer is not at the time to the knowledge of the Bond Trustee in default with respect to any of the terms and conditions of this Bond Indenture, or in the Bonds contained, be repaid by the Bond Trustee to the Borrower; and thereafter the registered owner of the Bond shall be entitled to look only to the Borrower for payment thereof; provided, however, that the Bond Trustee, before being required to make any such repayment, shall, at the expense of the Borrower, mail to the registered owner thereof at its address, as the same shall last appear on the Bond Register, a notice to the effect that said moneys have not been so applied and that after the date named in said notice any unclaimed balance of said moneys then remaining shall be returned to the Borrower. If the Borrower makes arrangements satisfactory to the Issuer and the Bond Trustee to indemnify the Issuer and the Bond Trustee for any costs which they may incur due to the unavailability of moneys due to such investment, such moneys may be invested in accordance with Section 4.4 hereof. Investment income on any such unclaimed moneys received by the Bond Trustee shall be deposited as provided in Section 4.4 hereof until the final maturity or redemption date of the Bonds. Any such income generated after such date shall be deemed to be unclaimed moneys of the type referred to in the first sentence of this Section and shall be disposed of in accordance with such sentence. The Borrower, by approval of this Bond Indenture as evidenced by the Loan Agreement, covenants and agrees to indemnify and save the Issuer and the Bond Trustee harmless from any and all loss, costs, liability and expense suffered or incurred by the Issuer and the Bond Trustee by reason of having returned any such moneys to the Borrower as herein provided. SECTION 13.3. SEVERABILITY. If any provision of this Bond Indenture shall be held or deemed to be or shall, in fact, be inoperative or unenforceable as applied in any particular case in any jurisdiction or jurisdictions or in all jurisdictions, or in all cases because it conflicts with any other provision or provisions or any constitution or statute or rule of public policy, or for any other reason, such circumstances shall not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance, or of rendering any other provision or provisions herein contained invalid, inoperative, or unenforceable to any extent whatever. 55 Packet Pg. 81  The invalidity of any one or more phrases, sentences, clauses or Sections in this Bond Indenture contained, shall not affect the remaining portions of this Bond Indenture, or any part thereof. SECTION 13.4. NOTICES. Except as otherwise provided in this Bond Indenture, all notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when in writing and mailed by first class mail, postage prepaid, with proper address as indicated below. Any of such parties may, by written notice given by such party to the others, designate any address or addresses to which notices, certificates or other communications to them shall be sent when required as contemplated by this Bond Indenture. Until otherwise provided by the respective parties, all notices, certificates and communications to each of them shall be addressed as follows: To the Issuer: Okaloosa County, Florida 101 E. James Lee Boulevard Crestview, Florida 32536 Attention: Finance Director Telephone No.: 850/689-5000 x 3411 To the Borrower: Auburn Water System, Inc. 3097 Locke Lane Crestview, Florida 32536 Attention: President Telephone No.: 850/682-1258 To the Bond Trustee: ________________________ ________________________ ________________________ Attention: _______________ Telephone No.: ___________ The Bond Trustee shall give Immediate Notice to each owner of Bonds of any change in the addresses of the Bond Trustee. SECTION 13.5. ADDITIONAL NOTICES TO RATING AGENCIES. The Bond Trustee hereby agrees that if at any time (i) payment of principal and interest on the Bonds is accelerated pursuant to the provisions of Section 7.2 hereof, (ii) the Issuer, at the direction of the Borrower, shall redeem all or any portion of the Bonds outstanding hereunder prior to maturity, (iii) a successor Bond Trustee is appointed hereunder, (iv) the Bondholders shall consent to any amendment to this Bond Indenture, the Loan Agreement or shall waive any provision of this Bond Indenture or the Loan Agreement, or (v) the Issuer or the Borrower shall provide for the payment of all or any portion of the Bonds outstanding hereunder prior to maturity pursuant to Section 11.1 or 11.3 hereof, then, in each case, the Bond Trustee will promptly give notice of the occurrence of such event to each Rating Agency then maintaining a rating on the Bonds, which notice in the case of an event referred to in clause (iv) hereof shall include a copy of any such amendment or waiver. 56 Packet Pg. 82  SECTION 13.6. COUNTERPARTS. This Bond Indenture may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. SECTION 13.7. APPLICABLE LAW. This Bond Indenture shall be governed exclusively by the applicable laws of the State. SECTION 13.8. IMMUNITY OF OFFICERS, EMPLOYEES AND MEMBERS OF ISSUER. No recourse shall be had for the payment of the principal of or premium, if any, or interest on any of the Bonds or for any claim based thereon or upon any obligation, covenant or agreement in this Bond Indenture contained against any past, present or future officer, director, member, employee or agent of the Issuer or any incorporator, officer, director, member, trustee, employee or agent of any successor corporation or body politic or of the State or any agency or political subdivision thereof, as such, either directly or through the Issuer or any successor corporation or body politic or of the State or any agency or political subdivision thereof, under any rule of law or equity, statute or constitution, or by the enforcement of any assessment or penalty or otherwise, and all such liability of any such incorporators, officers, directors, trustees, members, employees or agents as such is hereby expressly waived and released as a condition of and consideration for the execution of this Bond Indenture and the issuance of such Bonds. 57 Packet Pg. 83  [SIGNATURE PAGE FOR THE BOND TRUST INDENTURE] IN WITNESS WHEREOF, the Issuer has caused this Bond Indenture to be signed in its name and on its behalf by the Chairman of its Board of County Commissioners and attested by its Clerk, and ___________________ to evidence its acceptance of the trusts, created by this Bond Indenture has caused these presents to be signed in its name and on its behalf by one of its Authorized Signatories all as of the day and year first above written. OKALOOSA COUNTY, FLORIDA, as Issuer (SEAL) By: Chairman, Board of County Commissioners ATTEST: By: Clerk _____________________________, as Bond Trustee By: Authorized Signatory 58 Packet Pg. 84  EXHIBIT A FORM OF BOND UNITED STATES OF AMERICA STATE OF FLORIDA OKALOOSA COUNTY, FLORIDA UTILITIES SYSTEM REVENUE BOND, SERIES _____ (AUBURN WATER SYSTEM, INC. PROJECT) R-___ $__________ INTEREST RATE MATURITY DATE DATED DATE CUSIP _______ 1, ____ _______ ___, ______ REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: Okaloosa County, Florida (the "Issuer"), a political subdivision of the State of Florida, for value received, hereby promises to pay in lawful money of the United States of America to the registered owner set forth above, or registered assigns, on the Maturity Date (as identified above), unless this Series ____ Bond shall be redeemable and shall have previously been called for redemption and payment of the redemption price made or provided for, but solely from amounts available under the Bond Indenture (hereinafter defined) and certain amounts payable under the Loan Agreement (hereinafter defined), which amounts and payments are pledged and assigned for the benefit and payment hereof pursuant to the Bond Indenture and not otherwise, the principal amount set forth above upon presentation and surrender thereof at the designated corporate trust office of __________________________, ________ , ________, as Bond Trustee, or its successor in trust under the Bond Indenture (as hereinafter defined) and to pay interest (computed as described herein and in the Bond Indenture) on such principal amount, but solely from said amounts available under the Bond Indenture and payable under the Loan Agreement, payable on each Interest Payment Date (as hereinafter defined) until payment of such principal amount, or provision therefor, shall have been made upon redemption or at maturity. Interest payments on this Bond (other than with respect to Defaulted Interest) shall be made to the registered owner hereof appearing on the Bond Register as of the close of business of the Bond Registrar on the Record Date. Interest on the Bonds shall, except as hereinafter provided, be paid by check or draft of the Bond Trustee mailed on the Interest Payment Date to such registered owner at the address of such owner as it appears on the Bond Register or at such other address furnished in writing by such registered owner to the Bond Trustee, or to any owner of $1,000,000 or more in aggregate principal amount of Bonds as of the close of business of the Bond Trustee on the Record Date for a particular Interest Payment Date, by wire transfer sent on A-1 Packet Pg. 85 the Interest Payment Date, to such owner. The foregoing notwithstanding, Defaulted Interest shall be payable as provided in the Bond Indenture. This Series ____ Bond is one of an authorized Series of Bonds issued under the hereinafter described Bond Indenture in the aggregate original principal amount of $__________ (the "Series ___ Bonds") for the purpose of loaning funds to Auburn Water System, Inc., a Florida non-profit corporation, (the "Borrower"), which will be used, together with certain other moneys, to (i) [finance all or a portion of the costs of acquiring and constructing improvements to the Borrower's existing water utility system], (ii) [refunding certain indebtedness of the Borrower], and (iii) pay certain expenses incurred in connection with the issuance of the Bonds, all as permitted under the Act. The proceeds derived from the sale of the Bonds will be loaned to the Borrower pursuant to a Loan Agreement dated as of April 1, 2014 between the Borrower and the Issuer (as amended from time to time, the "Loan Agreement"). The Series ______ Bonds, together with (i) the Issuer's Utility System Revenue Bonds, Series _____ and (ii) any Additional Bonds which may be issued on a parity therewith (collectively, the "Bonds") are issued under and equally and ratably secured by and entitled to the security of a Bond Trust Indenture dated as of April 1, 2014, (the "Bond Indenture") duly executed and delivered by the Issuer to _____________________ (the "Bond Trustee"), pursuant to which Bond Indenture, all of the right, title and interest of the Issuer in and to the Loan Agreement (excluding Unassigned Rights, as defined in the Bond Indenture) are assigned by the Issuer to the Bond Trustee as security for the Bonds. Under the terms of the Bond Indenture, all or any portion of the Bonds may be refunded through a deposit in escrow for the benefit of such refunded Bonds of cash or Government Obligations (as defined in the Bond Indenture) and become payable solely from such cash and Government Obligations. Reference is made to the Bond Indenture and the Loan Agreement and to all amendments thereto for the provisions, among others, with respect to the nature and extent of the security, the rights, duties and obligations of the Issuer and the Bond Trustee and the rights of the owners of the Bonds, and to all the provisions of which the owner hereof by the acceptance of this Series ____ Bond assents. NOTICE OF LIMITED OBLIGATION THIS SERIES ____ BOND AND SUCH OTHER BONDS OF THE SERIES OF WHICH IT FORMS A PART, AND THE INTEREST PAYABLE HEREON, DO NOT CONSTITUTE A DEBT OR LIABILITY OF THE STATE OF FLORIDA (THE "STATE") OR OF ANY POLITICAL SUBDIVISION OR AGENCY THEREOF OTHER THAN THE ISSUER, OR A PLEDGE OF THE FAITH AND CREDIT OF THE ISSUER, THE STATE OR ANY POLITICAL SUBDIVISION THEREOF BUT SHALL BE PAYABLE SOLELY FROM THE FUNDS PLEDGED THEREFOR IN ACCORDANCE WITH THE BOND INDENTURE. THE ISSUANCE OF THE BONDS UNDER THE PROVISIONS OF THE ACT DOES NOT, DIRECTLY, INDIRECTLY OR CONTINGENTLY, OBLIGATE THE STATE OR ANY POLITICAL SUBDIVISION OR AGENCY THEREOF TO LEVY ANY FORM OF TAXATION FOR THE PAYMENT THEREOF OR TO MAKE ANY APPROPRIATION FOR THEIR PAYMENT, AND THE BONDS AND THE INTEREST PAYABLE THEREON DO NOT NOW AND SHALL NEVER CONSTITUTE A DEBT OF THE ISSUER OF THE STATE WITHIN THE MEANING OF THE CONSTITUTION OR THE STATUTES OF THE STATE AND DO NOT NOW AND SHALL NEVER CONSTITUTE A CHARGE AGAINST THE A-2 Packet Pg. 86 CREDIT OR TAXING POWER OF THE ISSUER, THE STATE OR ANY POLITICAL SUBDIVISION OR AGENCY THEREOF. THE STATE SHALL NOT IN ANY EVENT BE LIABLE FOR THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE BONDS OR FOR THE PERFORMANCE OF ANY PLEDGE, OBLIGATION OR AGREEMENT OF ANY KIND WHATSOEVER WHICH MAY BE UNDERTAKEN BY THE ISSUER. THIS SERIES ____ BOND AND THE OTHER BONDS, AND THE INTEREST AND PREMIUM, IF ANY, PAYABLE HEREON AND THEREON, ARE LIMITED OBLIGATIONS OF THE ISSUER AND ARE PAYABLE SOLELY (i) FROM PAYMENTS OR PREPAYMENTS TO BE MADE UNDER THE LOAN AGREEMENT, (ii) FROM CERTAIN MONEYS HELD BY THE BOND TRUSTEE UNDER THE BOND INDENTURE, AND (iii) FROM THE INCOME FROM THE TEMPORARY INVESTMENT OF ANY OF THE FOREGOING. This Series ____ Bond is registered on the Bond Register and may be transferred by the registered owner hereof at the written request of such registered owner in person or by his duly authorized attorney, but only in the manner, subject to the limitations and upon the payment of the charges provided in the Bond Indenture, and upon surrender and cancellation of this Series ____ Bond. Upon such transfer, a new fully registered bond or bonds of the same Subseries and maturity and of authorized denominations for the same aggregate principal amount shall be issued to the transferee in exchange therefor. The person in whose name this Series ____ Bond is registered shall be deemed and regarded as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal, premium, if any, and interest due hereon and for all other purposes, and neither the Issuer nor the Bond Trustee shall be affected by any notice to the contrary. If any Bond is transferred or exchanged on the Bond Register by the Bond Trustee after notice of the optional redemption of such Bond has been given, the Bond Trustee shall attach a copy of such notice to the Bond issued in connection with such transfer or exchange. The Bonds are issuable only as registered Bonds in Authorized Denominations of $5,000 and any integral multiple in excess thereof. Redemption Mandatory Sinking Fund Redemptions Without Premium. The Bonds shall be subject to mandatory redemption and payment prior to maturity at a redemption price equal to the principal amount thereof plus accrued interest to the redemption date, without premium. Pursuant to Section 4.2 of the Loan Agreement, the Borrower shall deposit in the Bond Sinking Fund a sum that, together with all amounts then on deposit in the Bond Sinking Fund and then available for the redemption of the Bonds, shall be sufficient to redeem (after credit as provided below) the following principal amounts of Bonds on the following sinking fund payment dates: A-3 Packet Pg. 87  ________ 1 Principal of the Year Amount *Final Maturity On or before the thirtieth (30th) day prior to any sinking fund payment date, the Bond Trustee shall proceed to select for redemption (by lot in such manner as the Bond Trustee may determine), from all Outstanding Bonds subject to mandatory sinking fund redemption on such date, an aggregate principal amount of such Bonds equal to the amount required to be on deposit in the Bond Sinking Fund with respect to such Bonds on such sinking fund payment date, and shall call such Bonds or portions thereof in Authorized Denominations for redemption from the sinking fund on such sinking fund payment date and give notice of such call. At the option of the Borrower, to be exercised by delivery of a Written Request of the Borrower to the Bond Trustee on or before the sixtieth (60th) day next preceding any sinking fund payment date, it may (i) deliver to the Bond Trustee for cancellation Bonds or portions thereof in Authorized Denominations of the maturity relating to such sinking fund payment date in any aggregate principal amount desired by the Borrower, or (ii) specify a principal amount of Bonds or portions thereof in Authorized Denominations or the maturity relating to such sinking fund payment date which prior to said date have been purchased or redeemed (otherwise than through the operation of the Sinking Fund) and cancelled by the Bond Trustee at the request of the Borrower and not theretofore applied as a credit against any sinking fund payment. Each such Bond or portion thereof so delivered or previously redeemed shall be credited by the Bond Trustee at one hundred percent (100%) of the principal amount thereof against the obligation of the Issuer on such sinking fund payment date with respect to Bonds of such maturity. Any excess shall be credited against the next sinking fund payment relating to the Bonds of such maturity. In the event the Borrower shall avail itself of the provisions of clause (i) of the second sentence of this paragraph, the Written Request shall be accompanied by the Bonds or portions thereof to be cancelled. Optional Redemption. This Series ____ Bond is not redeemable at the option of the Borrower or the Issuer [prior to maturity] [prior to _______ 1, ____]. This Series ____ Bond may be redeemed in whole or in part at the option of the Issuer (upon the direction of the Borrower on any date on or after _______ 1, ____ at a redemption price equal to ____% of the principal amount redeemed plus accrued interest to the redemption date. Any Bonds which are Borrower Bonds are subject to redemption in whole or in part (in an Authorized Denomination) prior to their Maturity Date at the option of the Issuer upon direction of the Borrower out of amounts deposited in the Redemption Fund by the Borrower, in whole or in part (and if in part, in an Authorized Denomination) on any Business Day while such A-4 Packet Pg. 88 Bonds are Borrower Bonds at a redemption price equal to 100% of the principal amount thereof plus accrued interest, if any, to the redemption date. [INSERT ADDITIONAL REDEMPTION PROVISIONS] Purchase in Lieu of Redemption. In lieu of an optional redemption and cancellation of Bonds, Bonds may be purchased by the Borrower for its own account and either (i) cancelled, or (ii) remarketed. Notice and selection of Bonds being purchased pursuant to the provisions of Section 5.3 of the Bond Indenture shall be given/selected in the same manner as the notice and selection of Bonds called for optional redemption; provided, that the notice provided for in Section 5.4 of the Bond Indenture shall be modified as necessary to reflect a purchase in lieu of redemption. Notice of Redemption. Except as hereinafter provided, a copy of the notice of the call for any such redemption identifying the Bonds to be redeemed shall be given by first class mail, postage prepaid, to the registered owners of Bonds to be redeemed at their addresses as shown on the Bond Register not less than 30 days prior to the redemption date. Except for mandatory Bond Sinking Fund redemptions, prior to the date that the redemption notice is first given as aforesaid, funds shall be placed with the Bond Trustee to pay such Bonds, any premium thereon and accrued interest thereon to the redemption date, or such notice shall state that any redemption is conditional on such funds being deposited with the Bond Trustee on the redemption date and that a failure to make such deposit shall not constitute an event of default under the Bond Indenture. Failure to give notice in the manner prescribed hereunder with respect to any Bond, or any defect in such notice, shall not affect the validity of the proceedings for redemption for any Bond with respect to which notice was properly given. Upon the happening of the above conditions and if sufficient moneys are on deposit with the Bond Trustee on the applicable redemption date to redeem the Bonds to be redeemed and to pay interest due thereon and premium, if any, the Bonds thus called shall not after the applicable redemption date bear interest, be protected by the Bond Indenture or be deemed to be outstanding under the provisions of the Bond Indenture. The Bond Trustee shall redeem, in the manner provided in the Bond Indenture, such an aggregate principal amount of such Bonds at the principal amount thereof plus accrued interest to the redemption date and unpaid thereon and premium, if any, as will exhaust as nearly as practicable such funds. At the direction of the Borrower, such funds may be invested in United States Government Obligations until needed for redemption payout. If any Bond is transferred or exchanged on the Bond Register by the Bond Registrar after notice has been given calling such Bond for redemption, the Bond Registrar will attach a copy of such notice to the Bond issued in connection with such transfer. Selection of Bonds. In the event that less than all of the Outstanding Bonds or portions thereof shall be redeemed, the maturities of the Bonds to be redeemed shall be designated by the Borrower and, if not so designated, the Bonds to be redeemed shall be redeemed in inverse order of maturity. If less than all Bonds or portions thereof of a single maturity are to be redeemed, they shall be selected by lot in such manner as the Bond Trustee may determine pursuant to the Bond Indenture. A-5 Packet Pg. 89  In case a Bond is of a denomination larger than an Authorized Denomination, a portion of such Bond may be redeemed, but Bonds shall be redeemed only in the principal amount of an Authorized Denomination each or any integral multiple thereof. Upon surrender of any Bond for redemption in part only, the Issuer shall execute and the Bond Trustee shall authenticate and deliver to the owner thereof, at the expense of the Borrower, a new Bond or Bonds of the same maturity of Authorized Denominations in an aggregate principal amount equal to the unredeemed portion of the Bond surrendered. Except as otherwise provided in the Bond Indenture, on or before the Business Day prior to the redemption date specified in the notice of redemption, an amount of money which together with all amounts then on deposit in the Bond Sinking Fund or Redemption Fund, as appropriate and available for redemption of the Bonds shall be sufficient to redeem all Bonds called for redemption at the appropriate redemption price, including accrued interest to the date fixed for redemption, shall be paid to the Bond Trustee for deposit in the Bond Sinking Fund or Redemption Fund, as appropriate. On the redemption date the principal amount of each Bond to be redeemed, together with the accrued interest thereon to such date and redemption premium, if any, shall become due and payable; and from and after such date, notice having been given and the deposit having been made in accordance with the provisions of Article V of the Bond Indenture, then, notwithstanding that any Bonds called for redemption shall not have been surrendered, no further interest shall accrue on any such Bonds. From and after such date of redemption (such notice having been given and such deposit having been made), the Bonds to be redeemed shall not be deemed to be Outstanding, and the Issuer shall be under no further liability in respect thereof. All or any portion of the Bonds are subject to advance defeasance by depositing with the Bond Trustee cash and/or Government Obligations (as such term is defined in the Bond Indenture) in an amount, together with the income or increment to accrue thereon, without consideration of any reinvestment thereof, and any uninvested cash, sufficient to pay or redeem (when redeemable) and discharge the indebtedness on all Bonds outstanding under the Bond Indenture at or before their respective maturity dates. All or any portion of the Bonds are also subject to advance defeasance of the Bond Indenture by depositing with the Bond Trustee cash and/or Government Obligations (as such term is defined in the Bond Indenture) in an amount, without consideration of any income or increment to accrue thereon, sufficient to pay or redeem (when redeemable) and discharge the indebtedness on all or a portion of the Bonds outstanding under the Bond Indenture at or before their respective maturity dates, it being understood that the investment income on such Government Obligations may be used for any other purpose under the Act. Upon such payment or provision therefor, together with all other payments required under the Bond Indenture, the Bond Indenture may be discharged with respect to such Bonds in accordance with the provisions thereof, but the Issuer shall remain the obligor on such Bonds, although the owners thereof and the owner hereof shall be entitled to payment solely out of such cash and funds received from such Government Obligations deposited with the Bond Trustee. None of the Bonds outstanding under the Bond Indenture may be refunded as aforesaid nor may the Bond Indenture be discharged if under any circumstances such refunding would result in the loss of any exemption for purposes of federal income taxation to which interest on such Bonds would otherwise be entitled. As a condition precedent to the advance refunding of any Bonds outstanding hereunder, the Bond Trustee shall receive an Opinion of Bond Counsel to A-6 Packet Pg. 90 the effect that any exclusion from gross income of interest on such tax-exempt Bonds would not be adversely affected by reason of such refunding. The owner of this Series ____ Bond shall have no right to enforce the provisions of the Bond Indenture or to institute action to enforce the covenants therein, or to take any action with respect to any event of default under the Bond Indenture, or to institute, appear in or defend any suit or other proceedings with respect thereto, except as provided in the Bond Indenture. In certain events, on the conditions, in the manner and with the effect set forth in the Bond Indenture, the principal of all Bonds of all Series issued under the Bond Indenture and then outstanding may become or may be declared due and payable before the stated maturity thereof, together with interest accrued thereon. Modifications or alterations of the Bond Indenture, or of any supplements thereto, may be made only to the extent and in the circumstances permitted by the Bond Indenture. No recourse shall be had for the payment of the principal of or premium or interest on any of the Bonds or for any claim based thereon or upon any obligation, covenant or agreement in the Bond Indenture contained, against any past, present or future officer, director, member, employee or agent of the Issuer, or any incorporator, officer, director, member, trustee, employee or agent of any successor corporation or body politic, as such, either directly or through the Issuer or any successor corporation or body politic, under any rule of law or equity, statute or constitution or by the enforcement of any assessment or penalty or otherwise, and all such liability of any such incorporators, officers, directors, trustees, members, employees or agents, as such, is hereby expressly waived and released as a condition of and consideration for the execution of the Bond Indenture and the issuance of the Bonds. It is hereby certified that all conditions, acts and things required to exist, happen and be performed under the Act and under the Bond Indenture precedent to and in the issuance of this Series ____ Bond, exist, have happened and have been performed, and that the issuance, authentication and delivery of this Series ____ Bond have been duly authorized by a resolution of the Issuer duly adopted. This Series ____ Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Indenture until the certificate of authentication hereon shall have been duly executed by the Bond Trustee. A-7 Packet Pg. 91  IN WITNESS WHEREOF, as provided by the Act, the Issuer has caused this Series ____ Bond to be executed in its name and on its behalf by the manual or facsimile signature of the Chairman of its Board of County Commissioners and by the manual or facsimile signature of its Clerk, and its facsimile seal to be hereunto affixed, all as of the dated date specified above. OKALOOSA COUNTY, FLORIDA, as Issuer By: Chairman, Board of County Commissioners ATTEST: By: Clerk A-8 Packet Pg. 92  CERTIFICATE OF AUTHENTICATION This Series ____ Bond is one of the Bonds described in the within-mentioned Bond Indenture. Authentication Date: ________________ _____________________________, as Bond Trustee By: Authorized Signatory A-9 Packet Pg. 93  Unless this certificate is presented by an authorized representative of The Depository Trust Company to the Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or such other name as requested by the authorized representative of The Depository Trust Company and any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein. ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto Insert Social Security or Other Identifying Number of Assignee (Name and Address of Assignee) the within Bond and does hereby irrevocably constitute and appoint ________________ _____________________________, as attorneys to register the transfer of the said Bond on the books kept for registration thereof with full power of substitution in the premises. Dated: Signature Guaranteed: (Authorized Officer) signature must be NOTICE: The signature to this assignment guaranteed by an institution which is a must correspond with the name as it appears participant in the Securities Transfer Agent upon the face of the within Bond in every Medallion Program (STAMP) or similar particular, without alteration or enlargement or program. any change whatever. A-10 Packet Pg. 94  EXHIBIT B FORM OF REQUISITION FROM [EXPENSE FUND] [PROJECT FUND] REQUISITION NO. ___ Pursuant to Section [3.1/3.2] of the Bond Trust Indenture dated as of April 1, 2014 by and between ______________________, as bond trustee (the "Bond Trustee") and Okaloosa County, Florida (the "Issuer"), the undersigned __________ of Auburn Water System, Inc. (the "Borrower") hereby requests and authorizes the Bond Trustee to pay to the Borrower or to the person(s) listed on the Disbursement Schedule hereto, from the moneys deposited in the [Expense Fund/Project Fund], the aggregate sum of $__________ to pay such person(s) or to reimburse the Borrower for the advances, payments and expenditures made by it in connection with the items listed on the Disbursement Schedule. [INSERT INFORMATION REQUIRED BY SECTION 3.2 (paragraphs (a) through (c)) WITH RESPECT TO REQUISITIONS FROM THE PROJECT FUND]: In connection with the foregoing request and authorization, the undersigned hereby certifies that the obligations on the attached Disbursement Schedule have been incurred by the Borrower and are presently due and payable and that each item thereof is a necessary [cost of issuance/cost of the Project] and is a proper charge against the [Expense Fund/Project Fund] and has not been paid previously from the [Expense Fund/Project Fund]. This statement and all exhibits hereto, including the Disbursement Schedule, shall be conclusive evidence of the facts and statements set forth herein and shall constitute full warrant, protection and authority to the Bond Trustee for its actions taken pursuant hereto. Dated: __________, _____ AUBURN WATER SYSTEM, INC. By: Its: B-1 Packet Pg. 95  DISBURSEMENT SCHEDULE Payee Purpose Amount B-2 Packet Pg. 96  EXECUTION COPY RESOLUTION NO. ___ A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY, FLORIDA APPROVING THE ISSUANCE OF UTILITIES SYSTEM REVENUE BONDS, SERIES 2014 (AUBURN WATER SYSTEM, INC. PROJECT) BY THE COUNTY; RATIFYING A PUBLIC HEARING HELD WITH RESPECT THERETO; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Board of County Commissioners of Okaloosa County, Florida (the "Issuer") did on February 18, 2014 adopt its resolution (the "Inducement Resolution") evidencing its intent to proceed with the issuance of not exceeding $5,000,000 of its Utilities System Revenue Bonds, Series 2014 (Auburn Water System, Inc. Project) (the "Bonds"); and WHEREAS, the Issuer has conducted a public hearing with respect to the Bonds on the st 1 day of April, 2014, at 9:00 a.m., for the purpose of considering the issuance of the Bonds, said public hearing being in compliance with Section 147(f) of the Internal Revenue Code of 1986, as amended, and said public hearing disclosing no reason why the Bonds should not be issued; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY, FLORIDA, as follows: SECTION 1. The Issuer, pursuant to and in accordance with Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), hereby ratifies the holding of the public hearing referenced above and hereby approves the issuance of the Bonds for purposes of the Code, in accordance with the Inducement Resolution. Such approval does not make the Issuer liable or responsible for repayment of the Bonds, which will be secured by revenues derived from Auburn Water System, Inc., to which proceeds of the Bonds will be loaned, but is undertaken solely for purposes of the limited approval required under the Code. SECTION 2. This resolution shall take effect immediately upon adoption hereof. Packet Pg. 97  PASSED AND ADOPTED this 1st day of April, 2014. BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY, FLORIDA By: Chairman, Board of County Commissioners Attest: By: Clerk of the Circuit Court and ex officio Clerk, Board of County Commissioners Packet Pg. 98  NGN Draft No.2 3/26/2014 019.14 OKALOOSA COUNTY, FLORIDA and AUBURN WATER SYSTEM, INC. LOAN AGREEMENT DATED AS OF APRIL 1, 2014 The rights of Okaloosa County, Florida hereunder have been assigned to ___________________, as Bond Trustee under a Bond Trust Indenture dated as of April 1, 2014, except for certain unassigned rights described herein. Packet Pg. 99  TABLE OF CONTENTS Page ARTICLE I DEFINITIONS SECTION 1.1. DEFINITIONS ............................................................................................1 ARTICLE II REPRESENTATIONS SECTION 2.1. REPRESENTATIONS BY ISSUER...........................................................3 SECTION 2.2. REPRESENTATIONS AND WARRANTIES BY THE BORROWER ............................................................................................4 ARTICLE III ISSUANCE OF BONDS OF THE ISSUER SECTION 3.1. AGREEMENT TO ISSUE SERIES 2014 BONDS; PROCEEDS OF SERIES 2014 BONDS; ADDITIONAL BONDS ....................................5 SECTION 3.2. MAKING OF THE LOAN..........................................................................6 SECTION 3.3. PAYMENT OF BONDS .............................................................................6 SECTION 3.4 PLEDGE OF THIS LOAN AGREEMENT ................................................6 ARTICLE IV OBLIGATION PAYMENTS, FUND DEPOSITS, PREPAYMENTS AND OTHER PAYMENTS SECTION 4.1. PAYMENT OF PRINCIPAL, PREMIUM, IF ANY, AND INTEREST; PAYMENTS REQUIRED BY THE TAX EXEMPTION AGREEMENT ..................................................................7 SECTION 4.2. PAYMENTS IN RESPECT OF THE BONDS AND THIS LOAN AGREEMENT ..........................................................................................7 SECTION 4.3. CREDITS ON PRINCIPAL PAYMENTS .................................................7 SECTION 4.4. PREPAYMENT GENERALLY..................................................................7 SECTION 4.5. NOTICE OF PREPAYMENT.....................................................................7 SECTION 4.6. EFFECT OF PARTIAL PREPAYMENT ...................................................7 SECTION 4.7. AMORTIZATION SCHEDULES ..............................................................8 SECTION 4.8. ADDITIONAL PAYMENTS......................................................................8 SECTION 4.9. BORROWER'S OBLIGATIONS UNCONDITIONAL .............................8 ARTICLE V COVENANTS OF THE BORROWER SECTION 5.1. MAINTENANCE OF FACILITIES ...........................................................9 SECTION 5.2. COMPLIANCE WITH ORDERS AND ORDINANCES ..........................9 SECTION 5.3. SUFFICIENT REVENUES.........................................................................9 i Packet Pg. 100 SECTION 5.4. ISSUER'S RIGHT TO PERFORM THE BORROWER'S COVENANTS...........................................................................................9 SECTION 5.5. INDEMNITY ............................................................................................10 SECTION 5.6. NOTICE OF DEFAULT ...........................................................................11 SECTION 5.7. MAINTENANCE OF EXISTENCE .........................................................11 SECTION 5.8. FINANCIAL INFORMATION AND REPORTS ....................................11 SECTION 5.9. TAX EXEMPT BONDS ...........................................................................12 SECTION 5.10. INVESTMENTS AND ARBITRAGE......................................................12 SECTION 5.11. DISPOSITION OF PROJECT FUND AND EXPENSE FUND MONEYS................................................................................................12 SECTION 5.12. LIMITATIONS ON ADDITIONAL INDEBTEDNESS..........................12 SECTION 5.13. SUBORDINATED INDEBTEDNESS .....................................................14 SECTION 5.14. OPERATION AND MAINTENANCE ....................................................14 SECTION 5.15. ANNUAL BUDGET .................................................................................15 SECTION 5.16. RATES ......................................................................................................15 SECTION 5.17. BOOKS AND RECORDS ........................................................................15 SECTION 5.18. ANNUAL AUDIT.....................................................................................15 SECTION 5.19. NO MORTGAGE OR SALE OF THE SYSTEM ....................................15 SECTION 5.20. INSURANCE ............................................................................................16 SECTION 5.21. NO FREE SERVICE .................................................................................17 SECTION 5.22. NO IMPAIRMENT OF RIGHTS; NO COMPETING SYSTEM ............17 SECTION 5.23. ENFORCEMENT OF CHARGES............................................................17 SECTION 5.24. CONSULTING ENGINEERS ..................................................................17 ARTICLE VI EVENTS OF DEFAULT AND REMEDIES THEREFOR SECTION 6.1. EVENTS OF DEFAULT AND REMEDIES............................................18 SECTION 6.2. APPLICATION OF PROCEEDS OF REMEDIES ..................................19 SECTION 6.3. REMEDIES CUMULATIVE....................................................................20 SECTION 6.4. DELAY OR OMISSION NOT A WAIVER.............................................20 SECTION 6.5. REMEDIES SUBJECT TO PROVISIONS OF LAW ..............................20 ARTICLE VII SUPPLEMENTS AND AMENDMENTS TO THIS LOAN AGREEMENT SECTION 7.1. SUPPLEMENTS AND AMENDMENTS TO THIS LOAN AGREEMENT ........................................................................................20 ARTICLE VIII DEFEASANCE SECTION 8.1. DEFEASANCE .........................................................................................20 ARTICLE IX MISCELLANEOUS PROVISIONS SECTION 9.1 LOAN AGREEMENT FOR BENEFIT OF PARTIES HERETO ............21 ii Packet Pg. 101 SECTION 9.2. SEVERABILITY ......................................................................................21 SECTION 9.3. NOTICES ..................................................................................................21 SECTION 9.4. SUCCESSORS AND ASSIGNS...............................................................21 SECTION 9.5. COUNTERPARTS....................................................................................21 SECTION 9.6. GOVERNING LAW .................................................................................22 SECTION 9.7. IMMUNITY ..............................................................................................22 SECTION 9.8. OBLIGATIONS DUE ON SATURDAYS, SUNDAYS OR HOLIDAYS ............................................................................................22 SECTION 9.9. LIMITATION ON INTEREST.................................................................22 SCHEDULE A LOAN REPAYMENT SCHEDULE.......................................................A-1 iii Packet Pg. 102  LOAN AGREEMENT This is a LOAN AGREEMENT dated as of April 1, 2014 (the "Loan Agreement"), between AUBURN WATER SYSTEM, INC., a Florida non-profit corporation (the "Borrower") and OKALOOSA COUNTY, FLORIDA, a political subdivision of the State of Florida (the "Issuer"). PRELIMINARY STATEMENT The Borrower desires to obtain moneys which will be used, together with certain other moneys to, (i) finance all or a portion of the costs of improvements to the Borrower's existing water system, (ii) refinance certain outstanding indebtedness of the Borrower, and (iii) pay related expenses incurred in connection with the issuance of the Bonds (as hereinafter defined), all as permitted under the Act. Pursuant to the Act, the Issuer is obtaining funds to loan to the Borrower for the purposes aforesaid through the issuance and sale of its Utilities System Revenue Bonds, Series 2014A and 2014B (Auburn Water System, Inc. Project) in the initial aggregate principal amount of $________ (the "Series 2014 Bonds"), which will be issued under and secured by a Bond Trust Indenture dated as of April 1, 2014 (the "Bond Indenture") between the Issuer and _____________________, as bond trustee (the "Bond Trustee"). The Series 2014 Bonds, together with any Additional Bonds issued under the Bond Indenture, are referred to herein as the "Bonds." Pursuant to the Bond Indenture, the Issuer will pledge and assign certain of its rights under this Loan Agreement as part of the security for the Bonds. The Bonds will be payable out of the payments to be made by the Borrower provided for in this Loan Agreement. NOW THEREFORE, in consideration of the foregoing, the mutual covenants, conditions and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby expressly acknowledged, the Borrower and the Issuer hereby covenant and agree as follows: ARTICLE I DEFINITIONS SECTION 1.1. DEFINITIONS. The terms used in this Loan Agreement, unless the context requires otherwise, shall have the same meanings as set forth below or in the Bond Indenture. "Additional Indebtedness" means any Indebtedness incurred by the Borrower after the date of this Loan Agreement. "Annual Audit" means the annual audit prepared pursuant to the requirements of Section 5.18 hereof. "Bond Trustee's Prime Rate" means a fluctuating rate of interest equal to the prime rate established from time to time by the applicable department of the Bond Trustee or the largest commercial bank with which it is affiliated if it does not have a prime rate. The Bond Trustee's Packet Pg. 103 Prime Rate shall change simultaneously with any corresponding change or changes in the Bond Trustee's or such affiliated bank's prime rate. "Continuing Disclosure Agreement" means the Continuing Disclosure Agreement, dated as of April 1, 2014, between the Borrower and the Bond Trustee. "Derivative Agreement" means, without limitation, (i) any contract known as or referred to or which performs the function of an interest rate swap agreement, currency swap agreement, forward payment conversion agreement or futures contract related to Indebtedness; (ii) any contract providing for payments based on levels of, or charges or differences in, interest rates, currency exchange rates, or stock or other indices; (iii) any contract to exchange cash flows or payments or series of payments; (iv) any type of contract called, or designed to perform the function of, interest rate floors or caps, options, puts or calls, to hedge or minimize any type of financial risk, including, without limitation, payment, currency, rate or other financial risk; and (v) any other type of contract or arrangement that the Borrower determines is to be used, or is intended to be used, to manage or reduce the cost of Indebtedness, to convert any element of Indebtedness from one form to another, to maximize or increase investment return, to minimize investment return risk or to protect against any type of financial risk or uncertainty. "Derivative Indebtedness" means payments for which the Borrower shall have become obligated under a Derivative Agreement. "Derivative Period" means the period during which a Derivative Agreement is in effect. "Escrowed Interest" means amounts of interest on Indebtedness for which moneys or United States Government Obligations have been deposited in escrow, which deposit has been determined by an independent certified public accountant to be sufficient to pay such Escrowed Interest. "Escrowed Principal" means amounts of principal on Indebtedness for which moneys or United States Government Obligations have been deposited in escrow, which deposit has been determined by an independent certified public accountant to be sufficient to pay such Escrowed Principal. "Fiscal Year" means any 12-month period beginning on ________ 1 of any calendar year and ending on ________ 31 of such calendar year, or such other consecutive 12-month period selected by the Borrower as the fiscal year for the Borrower. "Funded Interest" means amounts irrevocably deposited in an escrow or other trust account to pay interest on Indebtedness and interest earned on amounts irrevocably deposited in an escrow or other trust account to the extent such interest earned is required to be applied to pay interest on such Indebtedness. "Indebtedness" means (i) all indebtedness of the Borrower for borrowed money, (ii) all installment sales, conditional sales and capital lease obligations incurred or assumed by the Borrower, and (iii) Derivative Indebtedness. "Maximum Annual Debt Service" means the highest Debt Service Requirement for any succeeding Fiscal Year. 2 Packet Pg. 104  "Required Information Recipient" means (i) the Bond Trustee, (ii) the initial holder of the Series 2014 Bonds, (iii) all nationally recognized municipal securities information repositories, (iv) any state information repository for the State identified by the Securities and Exchange Commission, and (v) all registered owners of $500,000 or more in principal amount of Bonds that request such reports in writing (which written request shall include a certification as to such ownership). "Subordinated Debt" means Indebtedness the payment of which is specifically subordinated to the payment of principal and interest on the Bonds or other Indebtedness incurred pursuant to the provisions of Sections 5.12(a), (b), (d), (f) or (g) hereof. All accounting terms not otherwise defined herein or in the Bond Indenture shall have the meanings assigned to them in accordance with generally accepted accounting principles in effect from time to time. All references in this instrument to designated "Articles," "Sections" and other subdivisions or subsections are to the designated Articles, Sections and other subdivisions of this instrument as originally executed. The words "herein," "hereof" and "hereunder" and other words of similar import refer to this Loan Agreement as a whole and not to any particular Article, Section or other subdivision unless the context indicates otherwise. ARTICLE II REPRESENTATIONS SECTION 2.1. REPRESENTATIONS BY ISSUER. The Issuer represents and warrants that: (a) it is a political subdivision organized and existing under the laws of the State, and will do or cause to be done all things within its power necessary to preserve its existence so long as any of the Bonds are Outstanding; (b) the Issuer has duly authorized the issuance, execution, delivery and performance of this Loan Agreement, the Bond Indenture and the other documents to which it is a party associated with the issuance of the Bonds, and has duly noticed and held the public hearing required by Section 147(f) of the Code and received sufficient private activity bond allocation required by the Code in connection with the issuance of the Series 2014A Bonds; (c) The Bonds are to be issued under and secured by the Bond Indenture pursuant to which the Issuer's interest in this Loan Agreement will be pledged and assigned to the Bond Trustee by outright assignment as security for payment of the principal of, premium, if any, and interest on the Bonds; (d) The Borrower has represented to the Issuer that the Project constitutes a "manufacturing facility" and a "project" within the meaning of the Act; (e) The Issuer has jurisdiction over the entire area in which the Project is to be located; (f) the Issuer has not pledged or assigned and will not pledge or assign its interest in this Loan Agreement, or any of the other documents associated with the issuance of the Bonds, 3 Packet Pg. 105 other than to secure the Bonds from time to time Outstanding as provided herein and in the Bond Indenture; and (g) each of the Issuer's representations, warranties and certifications contained in this Loan Agreement, the Tax Exemption Agreement and the Purchase Contract is true and correct in all material respects as of the date hereof. SECTION 2.2. REPRESENTATIONS AND WARRANTIES BY THE BORROWER. The Borrower makes the following representations and warranties as the basis for its covenants herein: (a) the Borrower is a non-profit corporation validly organized and existing under the laws of the State; (b) each of its representations, warranties and certifications contained in this Loan Agreement, the Tax Exemption Agreement and the Borrower's Closing Certificate is true and correct in all material respects as of the date hereof; (c) it reasonably expects to own all of the Project throughout the term of this Loan Agreement, it intends to use such facilities in connection with its operation of a water production, treatment and distribution system, and no Person other than the Borrower currently owns or will own or use any portion of the Project; (d) it is duly authorized under the laws of the State and all other applicable provisions of law and its articles of incorporation and by-laws to execute and deliver this Loan Agreement, the Tax Exemption Agreement and each of the other documents or instruments being delivered by the Borrower in connection with the issuance of the Bonds, that all action on its part necessary for the valid execution and delivery of this Loan Agreement, the Tax Exemption Agreement and each of the other documents or instruments to which the Borrower is a party related to the issuance of the Bonds (collectively the "Borrower's Documents") has been duly and effectively taken, and this Loan Agreement is a legal and valid obligation of the Borrower; (e) neither the execution and delivery of the Borrower's Documents, nor the consummation of the transactions contemplated hereby and thereby, nor the fulfillment of or compliance with the terms and conditions hereof or thereof conflicts with or results in a breach of the terms, conditions, or provisions of any agreement or instrument to which the Borrower is now a party or by which the Borrower is bound; (f) there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, known to be pending or threatened against or affecting the Borrower or any of its officers, nor to the best knowledge of the Borrower is there any basis therefor, wherein an unfavorable decision, ruling, or finding would materially adversely affect the transactions contemplated by the Borrower's Documents or which would adversely affect, in any way, the validity or enforceability of the Bonds, the Borrower's Documents, or any agreement or instrument to which the Borrower is a party, used or contemplated for use in the consummation of the transactions contemplated by the Borrower's Documents or the Bond Indenture; 4 Packet Pg. 106  (g) it has all material licenses and permits from all State, local and other governmental and regulatory agencies having jurisdiction required for the operation of its facilities; (h) The Tax Exemption Agreement executed and delivered by the Borrower concurrently with the issuance and delivery of the Series 2014 Bonds is true, accurate and complete in all material respects as of the date on which executed and delivered; (i) The Borrower agrees that neither it nor any related party to the Borrower (as defined in Treas. Reg. § 1.150-1(b)) will purchase any of the Series 2014A Bonds in an amount related to the obligation represented by this Loan Agreement, as described in Section 1.148-1(b) of the Code; (j) Any information that has been or will be supplied by the Borrower that has been or will be relied upon by the Issuer, the Bond Trustee and Bond Counsel with respect to the exclusion from gross income for federal income tax purposes of interest on the Series 2014A Bonds is true and correct; (k) The Project constitutes a "project," and a "manufacturing facility" within the meaning of the Act. All proceeds of the Bonds will be used to finance a "cost" within the meaning of the Act; (l) Based on current facts, estimates and circumstances, it is currently expected that the Project will not be sold or disposed of in a manner producing sale proceeds which, together with accumulated proceeds of the Series 2014 Bonds or earnings thereon, would be sufficient to enable the Borrower to retire substantially all of the Series 2014 Bonds prior to the maturity of the Series 2014 Bonds; (m) it has obtained all licenses and permits from all State, local and other governmental and regulatory agencies having jurisdiction required for the occupancy and operation of the Project which are currently obtainable, and the Borrower is not aware of any facts or circumstances which lead it to believe that all licenses and permits from all State, local and other governmental and regulatory agencies having jurisdiction required for the occupancy and operation of the Project which are not currently available will not be issued in due course; and (n) the Borrower has reviewed and is familiar with the terms and provisions of the Bond Indenture and will fully and faithfully perform all the duties and obligations which the Issuer has covenanted and agreed in the Bond Indenture to cause the Borrower to perform, and any duties and obligations which the Borrower is required in the Bond Indenture to perform. The foregoing shall not apply to any duty or undertaking of the Issuer which by its nature cannot be delegated or assigned. ARTICLE III ISSUANCE OF BONDS OF THE ISSUER SECTION 3.1. AGREEMENT TO ISSUE SERIES 2014 BONDS; PROCEEDS OF SERIES 2014 BONDS; ADDITIONAL BONDS. 5 Packet Pg. 107  (a) In order to provide funds to make the loan to the Borrower hereunder, the Issuer agrees to issue and sell the Series 2014 Bonds pursuant to the Purchase Contract. The Borrower agrees that the proceeds of the Bonds being loaned to the Borrower pursuant to this Loan Agreement shall be deposited with the Bond Trustee and applied as provided in the Bond Indenture. (b) Additional Bonds may be issued upon the terms and conditions provided herein and in Section 2.2 of the Bond Indenture to provide funds (i) to pay the cost of financing, refinancing, acquiring, providing, constructing, enlarging, remodeling, renovating, improving, furnishing or equipping and refinancing the acquiring, constructing, equipping or completing of the Project, (ii) to refund any Bonds theretofore issued and then Outstanding under the Bond Indenture or any other obligations that are permitted to be refunded pursuant to the Act, or (iii) for any combination of such purposes. (c) If the Borrower is not in default hereunder and otherwise meets the requirements for the issuance of Additional Bonds under the Bond Indenture, including any necessary consents thereunder, the Issuer agrees, on request of the Borrower, from time to time, to consider the issuance of the amount of Additional Bonds specified by the Borrower; provided that the terms of such Additional Bonds, the purchase price to be paid therefor and the manner in which the proceeds thereof are to be disbursed shall have been approved in writing by the Borrower, and provided further that the Borrower and the Issuer shall have entered into an amendment to this Loan Agreement to provide, among other things, for additional loan payments in an amount at least sufficient to pay principal of, premium, if any, and interest on the Additional Bonds when due. SECTION 3.2. MAKING OF THE LOAN. The Issuer hereby loans $________ to the Borrower and the Borrower accepts the loan from the Issuer on the terms and conditions provided in this Loan Agreement. The proceeds of such loan will be disbursed to the Borrower as provided in this Loan Agreement and the Bond Indenture. SECTION 3.3. PAYMENT OF BONDS. The Borrower agrees that the principal of and the interest and redemption premium, if any, on the Bonds shall be payable in accordance with the provisions of the Bond Indenture and SCHEDULE A to this Loan Agreement and that this Loan Agreement and payments to be made hereunder (excluding Unassigned Rights) shall be assigned and pledged to the Bond Trustee to secure the payment of the Bonds. The foregoing notwithstanding, the Borrower agrees that the moneys and securities, if any, on deposit in the Rebate Fund created by the Tax Exemption Agreement are not part of the "trust estate" and are not available to make payments of principal of, premium, if any, and interest on the Bonds. SECTION 3.4 PLEDGE OF THIS LOAN AGREEMENT. Except for Unassigned Rights, all of the Issuer's right, title and interest in this Loan Agreement (including the right to receive the payments to be made by the Borrower pursuant to this Loan Agreement) have been assigned to the Bond Trustee pursuant to the Bond Indenture. The Borrower consents to that assignment and agrees that the Bond Trustee may enforce any of the rights, privileges and remedies of the Issuer under this Loan Agreement, other than the Unassigned Rights. 6 Packet Pg. 108  ARTICLE IV OBLIGATION PAYMENTS, FUND DEPOSITS, PREPAYMENTS AND OTHER PAYMENTS SECTION 4.1. PAYMENT OF PRINCIPAL, PREMIUM, IF ANY, AND INTEREST; PAYMENTS REQUIRED BY THE TAX EXEMPTION AGREEMENT. The Borrower will duly and punctually pay the principal of, premium, if any, and interest on the Bonds in the manner set forth in SCHEDULE A to this Loan Agreement or in the Bond Indenture, according to the true intent and meaning thereof and hereof. Notwithstanding any schedule of payments set forth herein, the Borrower agrees to make payments upon the Bonds and be liable therefor at the times and in the amounts (including principal, interest and premium, if any) equal to the principal of, premium, if any, and interest on the Bonds from time to time outstanding, whether as regularly scheduled interest or principal payments, at maturity, by mandatory or optional redemption, acceleration or otherwise; provided, however, that the Borrower may be entitled to certain credits on such payments as permitted by Section 4.3 hereof. The Borrower also agrees to make any payments as required under the Tax Exemption Agreement. SECTION 4.2. PAYMENTS IN RESPECT OF THE BONDS AND THIS LOAN AGREEMENT. The Borrower covenants and agrees to make the deposits required under Section 4.2 of the Bond Indenture for the repayment of the loan of proceeds of the Bonds and other amounts payable hereunder and under the Bond Indenture. SECTION 4.3. CREDITS ON PRINCIPAL PAYMENTS. Notwithstanding any provision contained in this Loan Agreement or in the Bond Indenture to the contrary, the principal amount of Bonds of any maturity purchased by the Borrower and delivered to the Bond Trustee, or purchased by the Bond Trustee on behalf of the Borrower and canceled, shall be credited against the obligation of the Borrower to pay the principal of the Bonds due under this Loan Agreement equal to the principal amount of the Bonds so cancelled. SECTION 4.4. PREPAYMENT GENERALLY. No prepayment or purchase of the Bonds may be made except to the extent and in the manner expressly permitted by the Bond Indenture. Such prepayments or purchases shall be made by paying to the Bond Trustee an amount sufficient to redeem (when redeemable) or purchase all or a part of the Bonds, as the case may be, at the redemption or purchase prices specified therefor in the Bond Indenture in accordance with the Bond Indenture. Any prepayment or purchase pursuant to this Section shall include accrued interest and premium, if any, required for redemption or purchase of such Bonds as shall be purchased or redeemed by such prepayment. SECTION 4.5. NOTICE OF PREPAYMENT. The Borrower shall provide the Bond Trustee and the Issuer with a Written Request of any prepayment of and redemption or purchase of the Bonds not less than thirty-five (35) days prior to the prepayment date in described in Section 5.6 of the Bond Indenture, which Written Request shall designate the date of prepayment and the amount thereof and direct the redemption or purchase of Bonds in accordance with the terms of the Bond Indenture. SECTION 4.6. EFFECT OF PARTIAL PREPAYMENT. Upon any partial prepayment or purchase of the Bonds, each installment of interest which shall thereafter be 7 Packet Pg. 109 payable on the Bonds shall be reduced, taking into account the interest rate on the Bonds remaining outstanding after the redemption or purchase of Bonds from the proceeds of such partial prepayment and after the purchase and delivery and cancellation of Bonds described in Section 4.3 hereof. SECTION 4.7. AMORTIZATION SCHEDULES. On the date of any partial prepayment or purchase of the Bonds, the Borrower shall deliver to the Issuer and the Bond Trustee two copies of a new amortization schedule with respect to Bonds then outstanding setting forth the amount of the principal and interest installments to be paid after the date of such partial prepayment or purchase. SECTION 4.8. ADDITIONAL PAYMENTS. The Borrower agrees to pay directly all reasonable costs incurred by or on behalf of the Issuer or the Bond Trustee in connection with or incident to the issuance and sale of the Bonds which exceed the amount on deposit in the Expense Fund described in Section 3.1 of the Bond Indenture, including, without limitation, any commitment and other financing costs, recording expenses, trustee's acceptance fees and initial annual fees, legal fees, printing expenses, bond and issuer counsel fees and other fees and expenses. The Borrower agrees to pay or cause to be paid the following items to the following persons as additional payments under this Loan Agreement: (a) to the Bond Trustee, upon demand, an amount equal to all reasonable fees of the Bond Trustee for services rendered under the Bond Indenture and all fees and charges of any Paying Agent, registrar, counsel, accountant, consultant, engineer or other persons incurred in the performance of services under the Bond Indenture on request of the Bond Trustee for which the Bond Trustee and such other persons are entitled to payment or reimbursement, including, but not limited to, fees and expenses attributable to enforcement of remedies pursuant to Article VII of the Bond Indenture; (b) to the Issuer, within thirty (30) days of receipt of invoice, all reasonable fees and expenses incurred by the Issuer in relation to this Loan Agreement or the Bonds which are not otherwise required to be paid by the Borrower under the terms of this Loan Agreement; (c) to the Issuer or the Bond Trustee, as the case may be, the amount of all advances of funds made by either of them under the provisions of this Loan Agreement or an amount equal to all advances made by either of them under the Bond Indenture, with interest thereon at the Bond Trustee's Prime Rate from the date of each such advance; and (d) to the Bond Trustee, an amount equal to any deficiency in the amount required to be on deposit in any fund under the Bond Indenture caused by a decrease in the value of the investments therein. SECTION 4.9. BORROWER'S OBLIGATIONS UNCONDITIONAL. The Borrower agrees that its obligation to make the payments described in this Loan Agreement and to perform its obligations under this Loan Agreement are absolute and unconditional and are not subject to diminution by any defense (other than payment), by any right of set off, counterclaim 8 Packet Pg. 110 or abatement, by the happening or non-happening of any event or for any other reason whatsoever. ARTICLE V COVENANTS OF THE BORROWER SECTION 5.1. MAINTENANCE OF FACILITIES. The Borrower agrees that it will maintain and keep the property comprising the System to be maintained and kept in good repair, working order and condition except for ordinary wear and tear, and that it will make or cause to be made all necessary repairs and replacements, except with respect to such facilities as are obsolete or no longer useful or necessary to the Borrower's operations. SECTION 5.2. COMPLIANCE WITH ORDERS AND ORDINANCES. Subject to the following sentence, the Borrower will, at its sole cost and expense, comply with all present and future laws, ordinances, orders, decrees, rules, regulations and requirements of every duly constituted governmental authority, commission, association and court (collectively, a "Governmental Rule") of which the Borrower has notice and the violation of which would materially and adversely affect its property, plant and equipment or its use, occupancy, or condition. The Borrower is not required to comply with any Governmental Rule so long as the Borrower, in good faith and at its own cost and expense, is contesting the validity of the Governmental Rule or its applicability to the Borrower or is taking other appropriate action in an appropriate manner and by appropriate proceedings which operate during its pendency to prevent the sale, forfeiture, loss or loss of use and occupancy of its property, plant and equipment; provided, that no contest, action or proceeding may subject the Issuer or the Bond Trustee to any liability unless the Borrower had indemnified the Issuer or the Bond Trustee, as the case may be, to the satisfaction of the Issuer or the Bond Trustee. SECTION 5.3. SUFFICIENT REVENUES. Notwithstanding any other provision of the Borrower's Documents, the Borrower unconditionally agrees that it will pay pursuant to this Loan Agreement the full amount needed and at the times needed to enable the Issuer (or the Bond Trustee on its behalf) to make timely payment of the principal of (whether due upon maturity, redemption, acceleration or otherwise), premium, if any, and interest on the Bonds. SECTION 5.4. ISSUER'S RIGHT TO PERFORM THE BORROWER'S COVENANTS. If the Borrower fails to make any payment or perform any act required by any of the Borrower's Documents (unless the payment or performance is one which any of the Borrower's Documents permits the Borrower to contest and the Borrower is contesting it by diligently pursuing appropriate proceedings) then the Issuer or the Bond Trustee, upon not less than five (5) days' prior written notice to the Borrower, may (but is not obligated to) remedy the default for the account of the Borrower and make advances for that purpose. No remedy by the Issuer or the Bond Trustee operates to release the Borrower from its default. Any money advanced by the Issuer or the Bond Trustee in the discharge of an obligation of the Borrower under this Loan Agreement are additional obligations of the Borrower to the one making the advance, are due from the Borrower in immediately available funds on demand and bear interest at the Bond Trustee's Prime Rate from the date of the advance until paid. 9 Packet Pg. 111  SECTION 5.5. INDEMNITY. (a) The Borrower agrees to pay, and agrees to protect, indemnify and save the Issuer and the Bond Trustee harmless from and against any and all liabilities, losses, damages, costs, expenses (including reasonable attorneys' fees), causes of action, settlements, judgments or other obligations of any nature arising through any suits, claims, demands, actions or proceedings of any nature arising from, in connection with or as a result of: (i) any injury to or death of any person or damage to property in or upon the Project or resulting from or connected with the use, non-use, condition or occupancy of the Project or any part thereof; (ii) the violation of any agreement or condition of this Loan Agreement or the Tax Exemption Agreement, except by the Bond Trustee; (iii) the violation of any contract, agreement or restriction by the Borrower relating to its property, plant and equipment; (iv) the violation of any law, ordinance or regulation arising out of the ownership, occupancy or use of its property, plant and equipment or any part thereof; (v) the construction, acquisition, equipping and installation of the Project or the failure to construct, acquire, equip or install the Project; (vi) the issuance and sale of the Bonds or the execution, delivery and performance of the Borrower's Documents or the Bond Indenture; (vii) any act of the Borrower or any of its agents, contractors or licensees; and (viii) any statement or information concerning the Borrower, its officers and members or the property, plant and equipment of the Borrower contained in the Official Statement or any other prospectus furnished to purchasers of any securities that is untrue or incorrect in any material respect and any omission from the Official Statement or any prospectus of any statement or information which should be contained in it for the purpose for which it is to be used or which is necessary to make the statements in it concerning the Borrower, its officers and members or the property, plant and equipment of the Borrower not misleading in any material respect, if such other official statement or prospectus is approved in writing by the Borrower. Nothing contained in this Loan Agreement prohibits the Borrower from pursuing its remedies against the Issuer or the Bond Trustee for damages caused by the Issuer's gross negligence or willful acts or the Bond Trustee's negligent or willful acts. (b) The Borrower also agrees to indemnify and hold harmless the Bond Trustee against any loss, liability or expense incurred without negligence or bad faith on the part of the Bond Trustee arising out of or in connection with the acceptance or administration of the Bond Indenture, including the costs and expense of a defense against any claim or liability. (c) If any suit, claim, demand, action or proceeding is brought against the Issuer or the Bond Trustee with respect to which indemnity may be sought under this Section, the Issuer and the Bond Trustee, as the case may be, agree to promptly notify the Borrower in writing, and 10 Packet Pg. 112 the Borrower agrees to assume the defense of the suit, claim, demand, action or proceeding, including the employment of Independent Counsel and the payment of all expenses. Each of the Issuer and the Bond Trustee may, however, retain its own counsel and still be indemnified against the cost of employing counsel and all other expenses despite an assumption of the defense by the Borrower if the Issuer or the Bond Trustee believes in good faith that there are defenses available to it which are not available to the Borrower or which are adverse to or in conflict with those available to the Borrower and which the Issuer or the Bond Trustee believes in good faith cannot be effectively asserted by common counsel. The Issuer and the Bond Trustee always have the right to employ separate Independent Counsel but, subject to the preceding sentence, fees and expenses of its separate Independent Counsel must be paid by the Issuer or the Bond Trustee unless the Borrower and the Issuer or the Bond Trustee have mutually agreed to the employment of the Issuer's or the Bond Trustee's separate Independent Counsel. The Borrower is not liable for any settlement of a suit, claim, demand, action or proceeding effected without its written consent. If the suit, claim, demand, action or proceeding is settled with the consent of the Borrower or results in a final judgment for the plaintiff, the Borrower agrees to indemnify and hold harmless the Issuer and the Bond Trustee from and against any loss or liability by reason of the settlement or judgment. All amounts payable to or with respect to the Issuer under this Section shall be deemed to be fees and expenses of the Issuer for the purposes of the provisions hereof and of the Bond Indenture dealing with the assignment of the Issuer's rights hereunder. SECTION 5.6. NOTICE OF DEFAULT. The Borrower agrees to give to the Bond Trustee notice of any event which with the lapse of time or the giving of notice or both would be an event of default hereunder (a "default") within ten (10) days of the Borrower or any of its officers learning of the occurrence of the default. SECTION 5.7. MAINTENANCE OF EXISTENCE. The Borrower agrees that during the term of this Loan Agreement it will maintain its corporate existence as a provider of utility services pursuant to the Act and will be duly qualified to transact business in the State, will not dissolve, will not sell, lease, transfer or otherwise dispose of all or substantially all of its assets, will not receive from any other corporation by sale, lease, transfer or otherwise all or substantially all of its assets, will not consolidate with or merge into another corporation and will not permit one or more other corporations to consolidate with or merge into it. SECTION 5.8. FINANCIAL INFORMATION AND REPORTS. (a) The Borrower agrees to keep proper books of record and account in which full, true and correct entries will be made of all the Borrower's business and affairs in accordance with generally accepted accounting principles consistently maintained. (b) The Borrower agrees to comply with the continuing reporting requirements set forth in the Continuing Disclosure Agreement. (c) The Borrower agrees to provide such additional information as the Bond Trustee may reasonably request to determine whether the covenants, terms and provisions of this Loan Agreement have been complied with and for that purpose all pertinent books, documents and vouchers relating to the business, affairs and Project (other than patient and personnel records), 11 Packet Pg. 113 to the extent permitted by law, shall upon reasonable request of the Bond Trustee be open to inspection. SECTION 5.9. TAX EXEMPT BONDS. The Borrower and Issuer intend that the interest paid on the Series 2014A Bonds will be excluded from the gross income of the Owners of the Series 2014A Bonds for federal income tax purposes pursuant to Section 103 of the Code. The Borrower agrees that it will not take any action which would, or fail to take any action the omission of which would, adversely affect the validity of the Series 2014A Bonds or any exemption from federal income taxation to which interest on the Series 2014A Bonds would otherwise be entitled. SECTION 5.10. INVESTMENTS AND ARBITRAGE. Section 4.4 of the Bond Indenture provides that money on deposit in the Bond Indenture funds will be invested in Qualified Investments as directed by the Borrower. The Borrower agrees (i) to provide written investment instructions to the Bond Trustee as needed, (ii) that all of such investment instructions are subject to the provisions of the Tax Exemption Agreement and Section 6.9 of the Bond Indenture, and (iii) that it will not make or direct any use of any funds which will cause the Series 2014A Bonds to be "arbitrage bonds" within the meaning of such term as used in Section 148 of the Code ("Arbitrage Bonds"). The Borrower agrees for the benefit of the Owners of the Series 2014A Bonds that no use will be made of the proceeds derived from the issuance and sale of the Series 2014A Bonds which will cause the Series 2014A Bonds to be Arbitrage Bonds. SECTION 5.11. DISPOSITION OF PROJECT FUND AND EXPENSE FUND MONEYS. The Borrower agrees that if after payment by the Bond Trustee of all amounts requested pursuant to Written Requests theretofore tendered to the Bond Trustee under the provisions of Sections 3.1 and 3.2 of the Bond Indenture, there shall remain any moneys in the Expense Fund or Project Fund, such moneys shall be used or deposited as provided in Sections 3.1 and 3.2 of the Bond Indenture. SECTION 5.12. LIMITATIONS ON ADDITIONAL INDEBTEDNESS. The Borrower covenants and agrees that it will not incur any Additional Indebtedness if, after giving effect to all other Indebtedness incurred by the Borrower, such Indebtedness could not be incurred pursuant to this Section 5.12. Any Indebtedness may be incurred only in the manner and pursuant to the terms set forth in such subsections. (a) Except in the case of Additional Indebtedness issued for the purpose of refunding Outstanding Bonds, the Borrower shall certify that it is current in all deposits into the various funds and accounts established by the Bond Indenture and all payments theretofore required to have been deposited or made by it under the provisions hereof and of the Bond Indenture, and the Borrower is in compliance with the covenants and agreements of this Loan Agreement. (b) An independent certified public accountant shall certify to the Borrower that the amount of the Net Revenues (excluding Investment Earnings with respect to the Project Fund) received by the Borrower during the immediately preceding Fiscal Year or any 12 consecutive months selected by the Borrower of the 24 months immediately preceding the issuance of said Additional Indebtedness, adjusted as hereinafter provided, were equal to at least 125% of the Maximum Annual Debt Service of the Outstanding Bonds, any outstanding Indebtedness and the Additional Indebtedness then proposed to be issued. 12 Packet Pg. 114  (c) For the purpose of determining Debt Service under this Section 5.12, the interest rate on Additional Indebtedness that is proposed to be issued as variable rate shall be deemed to be the Bond Buyer Revenue Bond Index most recently published prior to the sale of such Additional Indebtedness. (d) For the purpose of determining Debt Service under this Section 5.12, the interest rate on outstanding variable rate Bonds or Indebtedness shall be deemed to be (1) if such variable rate Bonds or Indebtedness have been outstanding for at least 12 months prior to the date of sale of such Additional Indebtedness, the highest of (a) the actual rate of interest borne by such variable rate Bonds or Indebtedness on the date of sale, and (b) the average interest rate borne by such variable rate Bonds or Indebtedness during the 12-month period preceding the date of sale, or (2) if such variable rate Bonds or Indebtedness have not been Outstanding for at least 12 months prior to the date of sale of such Additional Indebtedness, the higher of (a) the actual rate of interest borne by the variable rate Bonds or Indebtedness on the date of sale, and (b) the Bond Buyer Revenue Bond Index most recently published prior to the sale of such Additional Indebtedness. (e) For the purpose of this Section 5.12, the phrase "immediately preceding Fiscal Year or any 12 consecutive months selected by the Borrower of the 24 months immediately preceding the issuance of said Additional Indebtedness" shall be sometimes referred to as "12 consecutive months" or the "12-month period." (f) The Net Revenues calculated pursuant to the foregoing Section 5.12(b) may be adjusted upon the written advice of the Consulting Engineers, at the option of the Borrower, as follows: (1) If the Borrower, prior to the issuance of the proposed Additional Indebtedness, shall have increased the rates, fees or other charges for the product, services or facilities of the System, the Net Revenues for the 12 consecutive months shall be adjusted to show the Net Revenues which would have been derived from the System in such 12 consecutive months as if such increased rates, fees or other charges for the product, services or facilities of the System had been in effect during all of such 12 consecutive months. (2) If the Borrower shall have acquired or has contracted to acquire any privately or publicly owned existing utility system that will become part of the System, the cost of which shall be paid from all or part of the proceeds of the issuance of the proposed Additional Indebtedness, then the Net Revenues derived from the System during the 12 consecutive months shall be increased by adding to the Net Revenues for said 12 consecutive months the Net Revenues which would have been derived from said existing utility system as if such existing utility system had been a part of the System during such 12 consecutive months. For the purposes of this paragraph, the Net Revenues derived from said existing utility system during such 12 consecutive months shall be adjusted to determine such Net Revenues by deducting the cost of operation and maintenance of said existing utility system from the gross revenues of said system. Such Net Revenues shall take into account any increase in rates imposed on customers of such utility system on or prior to the acquisition thereof by the Borrower. (3) If the Borrower, in connection with the issuance of Additional Indebtedness, shall enter into a contract (with a duration not less than the final maturity of such Additional 13 Packet Pg. 115 Indebtedness) with any public or private entity whereby the Borrower agrees to furnish services in connection with any utility system, then the Net Revenues of the System during the 12 consecutive months shall be increased by the least amount which said public or private entity shall guarantee to pay in any one year for the furnishing of said services by the Borrower, after deducting therefrom the proportion of operating expenses and repair, renewal and replacement cost attributable in such year to such services. (4) In the event the Borrower shall be constructing or acquiring additions, extensions or improvements to the System from the proceeds of such Additional Indebtedness and shall have established fees, rates or charges to be charged and collected from users of such facilities when service is rendered, such Net Revenues for the 12 consecutive months may be adjusted by adding thereto 100% of the Net Revenues estimated by the Consulting Engineers to be derived during the first 12 months of operation after completion of the construction or acquisition of said additions, extensions and improvements from the customers of the facilities to be financed by Additional Indebtedness, together with other funds on hand or lawfully obtained for such purpose; provided such customers must represent existing occupied structures that will be added to the System upon completion of the proposed additions, extensions or improvements. (5) If the Borrower shall add new customers subsequent to the commencement of the 12 consecutive months, the Consulting Engineers may adjust the Net Revenues to reflect the Net Revenues that would have been received by the Borrower if such customers had been in place for the entire 12 consecutive months. (g) In the event any Additional Indebtedness is issued for the purpose of refunding any Bonds then Outstanding or outstanding Indebtedness, the conditions of Section 5.12(b) shall not apply, provided that the issuance of such Additional Indebtedness shall result in a reduction of the aggregate debt service. The conditions of Section 5.12(b) shall apply to Additional Indebtedness issued to refund Subordinated Indebtedness and to Additional Indebtedness issued for refunding purposes which cannot meet the conditions of this paragraph. SECTION 5.13. SUBORDINATED INDEBTEDNESS. The Borrower may at any time or from time to time issue evidences of indebtedness which is not Additional Indebtedness payable in whole or in part out of Net Revenues and which may be secured by a pledge of Net Revenues; provided, however, that such pledge shall be, and shall be expressed to be, subordinated in all respects to the pledge of the Net Revenues created by this Loan Agreement and provided further that the issuance of such Subordinated Indebtedness shall be subject to any provisions contained in financing documents securing outstanding Subordinated Indebtedness to the extent such provisions impact on the ability of the Borrower to issue other Subordinated Indebtedness. The Borrower shall have the right to covenant with the holders from time to time of any Subordinated Indebtedness to add to the conditions, limitations and restrictions under which any Additional Indebtedness may be issued under the provisions of Section 5.12 hereof. The Borrower agrees to pay promptly any Subordinated Indebtedness as the same shall become due. SECTION 5.14. OPERATION AND MAINTENANCE. The Borrower will maintain or cause the System and all portions thereof to be maintained in good condition and will operate or cause to be operated the same in an efficient and economical manner, making or causing to be made such expenditures for equipment and for renewals, repairs and replacements 14 Packet Pg. 116 as may be proper for the economical operation and maintenance thereof. The Borrower may contract with a responsible Person which has experience in the operation of utility systems similar to the System for the operation and maintenance of the System. SECTION 5.15. ANNUAL BUDGET. The Borrower shall annually prepare and adopt, prior to the beginning of each Fiscal Year, an Annual Budget. No expenditure for Operating Expenses shall be made in any Fiscal Year in excess of the aggregate amount provided for Operating Expenses in the Annual Budget until the Governing Body shall have approved the increased expenditures. SECTION 5.16. RATES. The Borrower shall fix, establish, maintain and collect such rates, fees and charges for the product, services and facilities of the System, and revise the same from time to time, whenever necessary, so as always to provide in each Fiscal Year Net Revenues equal to at least 125% of the Debt Service Requirement becoming due in such Fiscal Year. Such rates, fees or other charges shall not be so reduced so as to be insufficient to provide adequate Net Revenues for the purposes provided therefor by this Loan Agreement. If, in any Fiscal Year, the Borrower shall fail to comply with the requirements contained in this Section 5.16, it shall promptly cause the Consulting Engineers to review its rates, fees, charges, income, Gross Revenues, Operating Expenses and methods of operation and to make written recommendations as to the methods by which the Borrower may seek to comply with the requirements set forth in this Section 5.16. The Borrower shall forthwith commence to implement such recommendations to the extent required so as to cause it to thereafter comply with said requirements. So long as the Borrower implements such recommendations within 120 days of the receipt thereof, the Borrower's failure to comply with this Section 5.16 shall not be considered an Event of Default under Section 6.1 hereof. SECTION 5.17. BOOKS AND RECORDS. The Borrower shall keep books, records and accounts of the revenues and operations of the System, which shall be kept separate and apart from all other books, records and accounts of the Borrower, and the Holders of any Bonds Outstanding or the duly authorized representatives thereof shall have the right at all reasonable times to inspect all books, records and accounts of the Borrower relating thereto. SECTION 5.18. ANNUAL AUDIT. The Borrower shall, immediately after the close of each Fiscal Year, cause the books, records and accounts relating to the System to be properly audited by a recognized independent firm of certified public accountants, and shall require such accountants to complete their report of such Annual Audit in accordance with applicable law. Each Annual Audit shall be in conformity with generally accepted accounting principles. SECTION 5.19. NO MORTGAGE OR SALE OF THE SYSTEM. Other than with respect to the Outstanding Parity Indebtedness, the Borrower irrevocably covenants, binds and obligates itself not to sell, lease, encumber or in any manner dispose of the System as a whole or any substantial part thereof (except as provided below) until all of the Bonds and all interest thereon shall have been paid in full or provision for payment has been made in accordance with the Bond Indenture. 15 Packet Pg. 117  The foregoing provision notwithstanding, the Borrower shall have and hereby reserves the right to sell, lease or otherwise dispose of any of the property comprising a part of the System in the following manner, if any one of the following conditions exist: (A) such property is not necessary for the operation of the System, (B) such property is not useful in the operation of the System, (C) such property is not profitable in the operation of the System, or (D) in the case of a lease of such property, such lease will be advantageous to the System and will not materially adversely affect the security for the Bondholders. Prior to any such sale, lease or other disposition of said property: (1) if the amount to be received therefor is not in excess of five percent (5%) of the market value of the gross plant of the System, an Officer's Certificate of the Borrower shall determine that one or more of the conditions for sale, lease or disposition of property provided for in the second paragraph of this Section 5.19 have been met; or (2) if the amount to be received from such sale, lease or other disposition of said property shall be in excess of five percent (5%) of the market value of the gross plant of the System, (a) the Borrower and the Consulting Engineers shall each first make a finding in writing determining that one or more of the conditions for sale, lease or other disposition of property provided for in the second paragraph of this Section 5.19 have been met, (b) the Governing Body shall, by resolution, duly adopt, approve and concur in the finding of the Officer's Certificate and the Consulting Engineers, and (c) the Borrower shall obtain an opinion of Bond Counsel to the effect that such sale, lease or other disposition is not in violation of the Act and will not adversely affect the federal tax exempt status of interest on the Bonds (other than the Series 2014B Bonds) or shall not otherwise affect the status of any Outstanding Bonds. Notwithstanding the foregoing provisions of this Section 5.19, the Borrower shall have the authority to sell for fair and reasonable consideration any land comprising a part of the System which is no longer necessary or useful in the operation of the System. The Borrower may make contracts or grant licenses for the operation of, or grant easements or other rights with respect to, any part of the System if such contract, license, easement or right does not, in the opinion of the Consulting Engineers, as evidenced by a certificate to that effect filed with the Borrower, impede or restrict the operation by the Borrower of the System, but any payments to the Borrower under or in connection with any such contract, license, easement or right in respect of the System or any part thereof shall constitute Gross Revenues. SECTION 5.20. INSURANCE. The Borrower will carry such insurance as is ordinarily carried by private or public entities owning and operating utilities similar to the System with a reputable insurance carrier or carriers, in such amounts as the Borrower shall determine to be sufficient, and such other insurance against loss or damage by fire, explosion, hurricane, tornado or other hazards and risks, and said property loss or damage insurance shall at all times be in an amount or amounts equal to the fair appraisal value of the buildings, properties, furniture, fixtures and equipment of the System, or such other amount or amounts as the Consulting Engineers or an insurance consultant who has a favorable reputation and experience and is qualified to survey risks and to recommend insurance coverage for Persons engaged in operations similar to the System, shall recommend or approve as sufficient. The Borrower may establish certain levels of insurance for which the Borrower may self- insure. Such levels of insurance shall be in amounts as recommended in writing by an insurance 16 Packet Pg. 118 consultant who has a favorable reputation and experience and is qualified to survey risks and to recommend insurance coverage for Persons engaged in operations similar to the System. The proceeds from property loss and casualty insurance shall, together with other available funds of the Borrower, be used to repair or replace the damaged portion of the System; provided, however, if the Issuer makes a determination in accordance with Section 5.19 hereof that such portion of the System is no longer necessary or useful in the operation of the System, such proceeds shall (1) if such proceeds equal or exceed $500,000, (a) be applied to the redemption or purchase of Bonds or (b) be deposited in irrevocable trust for the payment of Bonds in the manner set forth in the Bond Indenture, provided the Borrower has received an opinion of Bond Counsel to the effect that such deposit shall not adversely affect the exclusion, if any, from gross income of interest on the Outstanding Bonds for purposes of federal income taxation (other than the Series 2014B Bonds) and will not otherwise affect the status of any Outstanding Bonds, or (2) if such proceeds are less than $500,000, be used for lawful purposes of the System. SECTION 5.21. NO FREE SERVICE. The Borrower will not render or cause to be rendered any free services of any nature by its System, nor will any preferential rates be established for users of the same class; provided, however, the foregoing clause shall not be construed to prevent the Borrower from establishing various classes of users based on any factors deemed necessary or desirable by the Borrower. Different rates may be established for different classes. SECTION 5.22. NO IMPAIRMENT OF RIGHTS. The Borrower will not enter into any contract or contracts, nor take any action, the results of which might impair the rights of the Holders of the Bonds. SECTION 5.23. ENFORCEMENT OF CHARGES. The Borrower shall compel the prompt payment of rates, fees and charges imposed in connection with the System, and to that end will vigorously enforce all of the provisions of any requirement of the Borrower having to do with System connections and charges, and all of the rights and remedies permitted the Borrower under law, including the requirement for the making of a reasonable deposit by each user and the requirement for lawful disconnection of services for all premises delinquent in the payment of any duly invoiced bill. SECTION 5.24. CONSULTING ENGINEERS. The Borrower shall employ Consulting Engineers, whose duties shall be to make any certificates and perform any other acts required or permitted of the Consulting Engineers under this Loan Agreement, and also to review the construction and operation of the System, to make an inspection of the System at least once every three years, and to submit to the Borrower a report with recommendations as to the proper maintenance, repair and operation of the System, including recommendations for expansion and additions to the System to meet anticipated service demands, and an estimate of the amount of money necessary for such purposes. Copies of such reports, recommendations and estimates made as hereinabove provided shall be filed with the Borrower for inspection by Bondholders, if such inspection is requested. 17 Packet Pg. 119  ARTICLE VI EVENTS OF DEFAULT AND REMEDIES THEREFOR SECTION 6.1. EVENTS OF DEFAULT AND REMEDIES. The occurrence and continuance of any of the following events shall constitute an "event of default" hereunder: (a) failure by the Borrower to make any payment required by Section 4.1 or 4.2 hereof for the payment of the Bonds when the same shall become due and payable, whether upon a scheduled Interest Payment Date, at maturity, upon any date fixed for prepayment or purchase, by acceleration or otherwise; or (b) failure of the Borrower to comply with or perform any of the covenants, conditions, or provisions hereof or of the Tax Exemption Agreement or Continuing Disclosure Agreement and, except in case of a failure under Section 6.1(a) hereof which shall immediately constitute an event of default, to remedy such default within sixty (60) days after written notice thereof from the Issuer or the Bond Trustee, to the Borrower, the Issuer and the Bond Trustee; provided that, if such default cannot with due diligence and dispatch be wholly cured within 60 days but can be wholly cured, the failure of the Borrower to remedy such default within such 60- day period shall not constitute a default hereunder if the Borrower shall immediately upon receipt of such notice commence with due diligence and dispatch the curing of such default and, having so commenced the curing of such default, shall thereafter prosecute and complete the same with due diligence and dispatch; or (c) if any representation or warranty made by the Borrower herein or in any statement or certificate furnished to the Issuer, the Bond Trustee or the purchaser of any Bonds in connection with the sale of the Bonds or furnished by the Borrower pursuant hereto proves untrue in any material respect as of the date of the issuance or making thereof and shall not be made good within sixty (60) days after written notice thereof by the Issuer to the Borrower, or the Issuer, as the case may be; or (d) if the Borrower admits insolvency or bankruptcy or its inability to pay its debts as they mature, or is generally not paying its debts as such debts become due, or makes an assignment for the benefit of creditors or applies for or consents to the appointment of a trustee, custodian or receiver for the Borrower, or for the major part of its property; or (e) if a trustee, custodian or receiver is appointed for the Borrower or for the major part of its property and is not discharged within sixty (60) days after such appointment; or (f) if bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, proceedings under Title 11 of the United States Code, as amended, or other proceedings for relief under any bankruptcy law or similar law for the relief of debtors under federal or State law are instituted by or against the Borrower (other than bankruptcy proceedings instituted by the Borrower against third parties) and, if instituted against the Borrower, are not dismissed, stayed or otherwise nullified within 60 days after institution; or (g) if payment of any installment of interest or principal, or any premium, on any Bond shall not be made when the same shall become due and payable under the provisions of the Bond Indenture. 18 Packet Pg. 120  Upon the occurrence of an event of default, the Bond Trustee may, or upon receipt from the owners of at least 51% of the principal amount of the Bonds then Outstanding of a request to do so, shall, by written notice to the Borrower, declare all amounts due under this Loan Agreement to be immediately due and payable. Upon the occurrence of any event of default, the Bond Trustee as assignee of the Issuer, may take whatever action at law or in equity it deems necessary or desirable (i) to collect any amounts then due under this Loan Agreement, (ii) to enforce performance of any obligation, agreement or covenant of the Borrower under this Loan Agreement, or any other document to which the Borrower is a party associated with the issuance of the Bonds, or (iii) to otherwise enforce any of its rights. No waiver of any event of default extends to or affects any subsequent event of default or impairs any rights or remedies consequent thereon. The Borrower will give Immediate Notice to the Issuer and the Bond Trustee of any event of default. SECTION 6.2. APPLICATION OF PROCEEDS OF REMEDIES. The proceeds or avails resulting from the exercise of any such remedies, together with any other sums which then may be held by the Issuer (or the Bond Trustee, as assignee of the Issuer) under this Loan Agreement, whether under the provisions of this Article or otherwise, and which are available for such application shall be applied as follows: FIRST: To the payment of the costs and expenses of the exercise of such remedies, including reasonable compensation to the Issuer and the Bond Trustee, their agents, attorneys and counsel, and the expenses of any judicial proceedings wherein the same may be made, and of all fees, expenses, liabilities and advances made or incurred by any of them as permitted by this Loan Agreement, together with interest at the Bond Trustee's Prime Rate on such advances made by the Issuer, and to the payment of all taxes, assessments or claims prior to the claim of this Loan Agreement, except any taxes, assessments, liens or other charges, subject to which property may have been sold. SECOND: To the payment of any amounts then payable under the Tax Exemption Agreement. THIRD: To the payment of the whole amount then due, owing and unpaid on the Bonds for principal, interest and premium, if any, and in case such proceeds shall be insufficient to pay in full the whole amount so due, owing or unpaid on the Bonds, then ratably according to the aggregate of such principal and the accrued and unpaid interest and premium, if any, without preference or priority as between principal, interest or premium; such application to be made upon presentation of the Bonds and the notation thereon of the payment, if partially paid, or the surrender and cancellation thereof, if fully paid. FOURTH: To the payment of any other sums required to be paid by the Borrower pursuant to any provisions of this Loan Agreement. 19 Packet Pg. 121  FIFTH: To the payment of the surplus, if any, to the Borrower, its successors or assigns, upon the Written Request of the Borrower or to whomsoever may be lawfully entitled to receive the same upon its written request, or as any court of competent jurisdiction may direct. SECTION 6.3. REMEDIES CUMULATIVE. No remedy herein conferred upon or reserved to the Issuer (or the Bond Trustee, as assignee of the Issuer) is intended to be exclusive of any other remedy or remedies, and each and every such remedy shall be cumulative, and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute. SECTION 6.4. DELAY OR OMISSION NOT A WAIVER. No delay or omission of the Issuer to exercise any right or power accruing upon any event of default shall impair any such right or power, or shall be construed to be a waiver of any such event of default or an acquiescence therein; and every power and remedy given by this Loan Agreement to the Issuer (or the Bond Trustee as assignee of the Issuer) may be exercised from time to time and as often as may be deemed expedient by the Issuer (or the Bond Trustee as assignee of the Issuer). SECTION 6.5. REMEDIES SUBJECT TO PROVISIONS OF LAW. All rights, remedies and powers provided by this Article may be exercised only to the extent that the exercise thereof does not violate any applicable provision of the law of the State, and all the provisions of this Article are intended to be subject to all applicable mandatory provisions of the law of the State which may be controlling and to be limited to the extent necessary so that they will not render this Loan Agreement invalid or unenforceable under the provisions of any applicable law. ARTICLE VII SUPPLEMENTS AND AMENDMENTS TO THIS LOAN AGREEMENT SECTION 7.1. SUPPLEMENTS AND AMENDMENTS TO THIS LOAN AGREEMENT. This Loan Agreement may be supplemented and amended only as provided in Article X of the Bond Indenture. ARTICLE VIII DEFEASANCE SECTION 8.1. DEFEASANCE. If the Borrower shall pay and discharge or provide, in a manner satisfactory to the Issuer, for the payment and discharge of the whole amount of the principal of, premium, if any, and interest on the Bonds, in such manner as to render all Bonds issued no longer Outstanding, and shall pay or cause to be paid all other sums payable hereunder, and all sums payable under the Bond Indenture, or shall make arrangements satisfactory to the Issuer and the Bond Trustee for such payment and discharge, then and in that case all property, rights and interest hereby conveyed or assigned or pledged shall revert to the Borrower, and the estate, right, title and interest of the Issuer therein shall thereupon cease, terminate and become void; and this Loan Agreement, and the covenants of the Borrower contained herein, shall be discharged except as provided in Section 5.5, and the Issuer or the Bond Trustee, on behalf of the Issuer, in such case on demand of the Borrower and at its cost and 20 Packet Pg. 122 expense, shall execute and deliver to the Borrower a proper instrument or proper instruments acknowledging the satisfaction and termination of this Loan Agreement, and shall convey, assign and transfer or cause to be conveyed, assigned or transferred, and shall deliver or cause to be delivered, to the Borrower, all property, including money, then held by the Issuer other than moneys deposited with the Bond Trustee for the payment of the principal of and premium, if any, or interest on the Bonds. The Borrower agrees to pay all reasonable costs of the Issuer, its advisors and counsel in connection with any refunding of the Bonds, including, without limitation, the cost of having a bond rating reassigned to any Bonds which are to be advance refunded, if applicable. The Borrower also agrees that prior to advance refunding the Bonds it will make available to any rating agency which is maintaining a rating on the Bonds to be refunded such information as any such rating agency may require to reassign a bond rating to any Bonds which are be advance refunded. ARTICLE IX MISCELLANEOUS PROVISIONS SECTION 9.1 LOAN AGREEMENT FOR BENEFIT OF PARTIES HERETO. Except as provided in Section 5.5, nothing in this Loan Agreement, express or implied, is intended or shall be construed to confer upon, or to give to, any person other than the parties hereto, any right, remedy or claim under or by reason of this Loan Agreement or any covenant, condition or stipulation hereof; and the covenants, stipulations and agreements contained in this Loan Agreement are and shall be for the sole and exclusive benefit of the parties hereto, their successors and assigns. SECTION 9.2. SEVERABILITY. In the event any provision of this Loan Agreement is held invalid or unenforceable by any court of competent jurisdiction, the holding is not to invalidate or render unenforceable any other provision of this Loan Agreement. SECTION 9.3. NOTICES. All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when hand delivered or mailed by first class mail postage prepaid with proper address as indicated in the Bond Indenture. The Issuer, the Borrower and the Bond Trustee may, by written notice given by each to the others, designate any address or addresses to which notices, certificates or other communications to them shall be sent when required as contemplated by this Loan Agreement. SECTION 9.4. SUCCESSORS AND ASSIGNS. Whenever in this Loan Agreement any of the parties hereto is named or referred to, the successors and assigns of such party shall be deemed to be included and all the covenants, promises and agreements in this Loan Agreement contained by or on behalf of the Borrower, or by or on behalf of the Issuer, shall bind and inure to the benefit of the respective successors and assigns, whether so expressed or not. SECTION 9.5. COUNTERPARTS. This Loan Agreement is being executed in any number of counterparts, each of which is an original and all of which are identical. Each counterpart of this Loan Agreement is to be deemed an original hereof and all counterparts collectively are to be deemed but one instrument. 21 Packet Pg. 123  SECTION 9.6. GOVERNING LAW. It is the intention of the parties hereto that this Loan Agreement and the rights and obligations of the parties hereunder shall be governed by and construed and enforced in accordance with the laws of the State. SECTION 9.7. IMMUNITY. To the extent permitted by law, no recourse may be had for any claim based on this Loan Agreement or any agreement supplemental to this Loan Agreement, against any member, director, trustee or officer, past, present or future member, employee, director or agent of the Borrower, or any predecessor or successor corporation, as such, either directly or through the Borrower or any such predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability, whether at common law, in equity, by a constitution, statute or otherwise, of members, directors, trustees or officers, as such, being released as a condition of and consideration for the execution of this Loan Agreement. SECTION 9.8. OBLIGATIONS DUE ON SATURDAYS, SUNDAYS OR HOLIDAYS. If any date upon which an obligation of the Borrower or the Issuer is to be performed falls on a day which is not a Business Day, then the payment or fulfillment of the obligation may be made on the next succeeding Business Day with the same effect as if made on the date due. SECTION 9.9. LIMITATION ON INTEREST. No provision of this Loan Agreement is intended to require the payment or permit the collection of interest in excess of the maximum permitted by law. If any provision of this Loan Agreement requires payment of interest in an amount in excess of the maximum permitted by law, the Borrower is not obligated to pay any interest in excess of the amount permitted by law. This provision controls any provisions of this Loan Agreement inconsistent with it. 22 Packet Pg. 124  [SIGNATURE PAGE TO LOAN AGREEMENT] IN WITNESS WHEREOF, the Borrower and the Issuer have caused this Loan Agreement to be executed in their respective corporate names and have caused their respective corporate seals to be hereunto affixed and attested by their duly authorized officers, all as of the date first above written. OKALOOSA COUNTY, FLORIDA, as Issuer (SEAL) By: Chairman, Board of County Commissioners ATTEST: By: Clerk AUBURN WATER SYSTEM, INC., as Borrower By: President 23 Packet Pg. 125  SCHEDULE A LOAN REPAYMENT SCHEDULE LOAN APPLICABLE TO SERIES 2014 BONDS PAYMENT DATE PRINCIPAL INTEREST TOTAL A-1 Packet Pg. 126 Packet Pg. 127  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Don Vanderhoek SUBJECT: World Fiber Technologies, Inc. Task Order 14 DEPARTMENT: Information Systems BCC DISTRICT: All STATEMENT OF ISSUE: The Board is requested to approve World Fiber Technologies, Inc. Task Order 14 on Contract C10-1838-IS in the amount of $100,000.00 for maintenance/repair on the fiber optic system. BACKGROUND: The Board has an existing contract with World Fiber Technologies, Inc. for the maintenance and repair of the fiber optic system. This task order is necessary to provide for increased requests for fiber at new County locations. This task order has been through the Purchasing review process and funding is available in the Fiber Optic Telecommunications budget. OPTIONS: Approve/Disapprove RECOMMENDATIONS: Approve the Chairman to sign Task Order 14 with World Fiber Technologies, Inc. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 128  Okaloosa County Information Systems Fiber Optic Maintenance Contract Number C 1O-1838-IS Task Order 14 CONTRACT #: CJO-J838-IS TASK ORDER #: l i TASK ORDER AMOUNT: $ J00,00000 OFFERED BY CONSULTANT: World Fiber Technologies , Inc, FIRM'S NAME Mark L. Battle REPRESENTATIVE'S PRINTED NAME ~ ~tl~ President/CEO_ 03/06/2014 TITLE DATE RECOMMENDED FOR APPROVAL APPROVED BY OKALOOSA COUNTY (Department Director) (Per Purchasing Manual) • $25,000 or less approved by Purchasing Director • Between $25,001 and $50,000 approved by Purchasing Director and County Administrator • In excess of $50,000 approved by the Board, PURC ASING DIRECTOR pl~f:CrG>,,!, LNrt.'::n"\A"l'I(.,v S 'I.!:>fc.n'\j 11:2-114 r I TITLE DATE COUNTY ADMINISTRA OR ( applicable) CHAIRMAN (if applicable) DATE DATE Packet Pg. 129  Okaloosa County Information Systems Fiber Optic Maintenance Contract Number C 10- 1838-IS Task Order 14 This Task Order is issued pursuant to the Agreement for Maintenance for Okaloosa County Fiber Optic Network dated November 17 th , 2010, Between Okaloosa County, Florida and World Fiber Technologies, Inc., which is incorporated herein by this reference, with respect to Scope of Basic Services for Okaloosa County Infor,m ation Systems Fiber Optic Maintenance PURPOSE The purpose of this Task Order is to authorize and direct the CONTRACTOR (World Fiber Technol,ogies, Inc.) to proceed with necessary installation, testing or maintenance services for the Okaloosa County Information Systems Deoartment (OWNER). The activities that are included are described in "Scope of Services." SC OPE OF SERVIC ES The CONTRACTOR (World Fiber Technologies, Inc.) agrees to perform the technical and construction related services in accordance with contract ClO­ 1838-IS dated November 17th , 20 10 as requested and directed by the OWNER. 1. Emergency Response Level I, II, or III as necessary to react quickly to scheduled or unscheduled fiber optic outages. 2. Furnishing and installing 2" conduit, pull boxes, splice enclosures, fiber optic cable, terminations, splices and troubleshooting and any other related materials, equipment or labor to properly maintain or extend the county fiber optic network on an as-needed basis. 2 Packet Pg. 130  Okaloosa Coun ty Information Systems Fiber Optic Mainten ance C o ntract Number C 10-1838-IS Task Order 14 COMPENSATION PROVISIONS As compensation for providing the services under this Task Order, the OWNER shall pay the CONTRACTOR in accordance with the November 17th, 2010 agreement for the actual work completed and accepted by the OWNER. Invoicing must show specific quantities and grouped by each assigned task with sufficient detail to full,y report results, conclusions, and recommendations as required. Each invoice will also show total to date of all invoices under this task order. The Not to Exceed ~ NTE) amount for this task order ,is: _ _ $100,000.00_ __ PERIOD OF SERVICE The schedule for the services provided under this task order shall be in accordance with the November 17, 2010 Agreement and will remain in effect until the NTE amount is reached or otherwise terminated by the OWNER. AUTH ORIZED REPRESE NTATIVES The Authorized Representatives designated below are authorized to act with respect to this Task Order. Communications between the parties shall be through the Authorized Representatives: For OWNER: For CONTRACTOR: Dan Sambenedetto Jerry Neely dsambenedetto@co.okaloosa.fl.us jneely@worldfiber.com 1804 Lewis Turner Blvd Suite 402 4070 Nine McFanland Dr FWB, FL 32547 Alpharetta, GA 30004 850-651-7570, 850-200-5346 404-425-3340 3 Packet Pg. 131  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Sunil Harman SUBJECT: Emerald Coast Aviation Amendment #6 DEPARTMENT: Airport BCC DISTRICT: All STATEMENT OF ISSUE: Aero FX dba Emerald Coast Aviation entered into the original lease agreement on January 1, 2009 to conduct Fixed Base Operations (FBO) at the Bob Sikes Airport. Emerald Coast Aviation requests Amendment # 6 to obtain a mortgage. BACKGROUND: Emerald Coast Aviation requests to amend their Lease Agreement with Okaloosa County to add provisions which would allow Emerald Coast Aviation to mortgage its interest as a Lessee under the Lease so that Emerald Coast Aviation can obtain funding from a commercial lender to construct permanent improvements at their FBO location at the Bob Sikes Airport. OPTIONS: Approve, Reject or Table. RECOMMENDATIONS: It is Staff's recommendation that the Board approve Emerald Coast Aviation's request to obtain a mortgage as described above. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 132 Packet Pg. 133 Packet Pg. 134 Packet Pg. 135 Packet Pg. 136  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Sunil Harman SUBJECT: Lease for Shoe Repair and Shine Concession DEPARTMENT: Airport BCC DISTRICT: All STATEMENT OF ISSUE: A proposed Lease for Shoe Shine Concession at the Northwest Florida Regional Airport is being presented to the Board of County Commissioners for approval. BACKGROUND: Proposal was approved and accepted and lease was accomplished for Heel 2 Toe Shoe Repair to provide shoe repair and shine to passengers at the Airport. The lease will be for one three year term with an option to renew for one additional two year term. The contract and lease internal coordination sheet is attached along with their certificate of insurance. OPTIONS: Approve, Reject or Table. RECOMMENDATIONS: It is Staff's recommendation that the Board approve this Lease as described above. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 137 Packet Pg. 138 Packet Pg. 139 Packet Pg. 140 Packet Pg. 141 Packet Pg. 142 Packet Pg. 143 Packet Pg. 144 Packet Pg. 145  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Sunil Harman SUBJECT: Verizon Site Access Agreement DEPARTMENT: Airport BCC DISTRICT: All STATEMENT OF ISSUE: A proposed Verizon Wireless Site Access Agreement at the Northwest Florida Regional Airport is being presented to the Board of County Commissioners for approval. BACKGROUND: Verizon Wireless will be installing repeaters at the Airport and before the installation, Verizon Wireless will need access to Airport property to conduct radio tests, conduct physical structural and geotechnical testing, conduct environmental testing, establish wetland delineations, and conduct boundary and other surveys. Verizon Wireless' certificate of insurance is attached along with the contract and lease internal coordination sheet. OPTIONS: Approve, Reject or Table. RECOMMENDATIONS: It is Staff's recommendation that the Board approve the Verizon Wireless Site Access Agreement as described above. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 146 Packet Pg. 147 Packet Pg. 148 Packet Pg. 149 Packet Pg. 150 Packet Pg. 151 Packet Pg. 152 Packet Pg. 153 Packet Pg. 154 Packet Pg. 155 Packet Pg. 156  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Sunil Harman SUBJECT: Hudson Amendment Number One DEPARTMENT: Airport BCC DISTRICT: All STATEMENT OF ISSUE: A proposed Amendment Number One to Airport Management Services dba Hudson Group's Agreement at the Northwest Florida Regional Airport is being presented to the Board of County Commissioners for approval. BACKGROUND: Airport Management Services dba Hudson Group requested and was granted an additional 81 square feet in the concourse area holdroom between gates B5 and B6 for merchandise, food and beverage concession. Hudson Group's certificate of insurance is attached along with the Contract and Lease Internal Coordination Sheet. OPTIONS: Approve, Reject or Table. RECOMMENDATIONS: Staff recommends the Board approve this Amendment as described above. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 157 Packet Pg. 158 Packet Pg. 159 Packet Pg. 160 Packet Pg. 161 Packet Pg. 162 Packet Pg. 163 Packet Pg. 164 Packet Pg. 165 Packet Pg. 166 Packet Pg. 167  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Sunil Harman SUBJECT: [Airports] FDOT Grant for Bob Sikes Airport Aircraft Parking Apron DEPARTMENT: Airport BCC DISTRICT: All STATEMENT OF ISSUE: The Board of County Commissioners is requested to approve a grant offer to overlay the aircraft parking apron at Bob Sikes Airport. BACKGROUND: This Joint Participation Agreement (JPA) provides $97,500.00 (80%) of the estimated project cost of $121,875.00. The apron area and adjacent taxi lane condition has been rated as very serious to poor by the Florida Department Of Transportation (FDOT) inspection report of December 2013. This project will address the most serious areas in the first phase of reconstruction. Phase II and III will be addressed with future FDOT assistance. Federal Aviation Administration (FAA) eligibility for assistance will involve application for discretionary funding since Bob Sikes Airport is a General Aviation airport and only receives $150,000 a year of Federal grant entitlements. The total remaining estimate for bringing the remaining apron areas up to satisfactory/good rating is about $3 million. OPTIONS: Approve, table or disapprove RECOMMENDATIONS: The Airport staff recommends the Board approve this Joint Participation Agreement and authorize the Chairman to sign the required signature resolution. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 168 Packet Pg. 169 Packet Pg. 170 Packet Pg. 171 Packet Pg. 172 Packet Pg. 173 Packet Pg. 174 Packet Pg. 175 Packet Pg. 176 Packet Pg. 177 Packet Pg. 178 Packet Pg. 179 Packet Pg. 180 Packet Pg. 181 Packet Pg. 182 Packet Pg. 183 Packet Pg. 184 Packet Pg. 185 Packet Pg. 186 Packet Pg. 187 Packet Pg. 188 Packet Pg. 189 Packet Pg. 190 Packet Pg. 191 Packet Pg. 192 Packet Pg. 193 Packet Pg. 194 Packet Pg. 195 Packet Pg. 196 Packet Pg. 197 Packet Pg. 198  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Sunil Harman SUBJECT: [Airports] FDOT Grant for Bob Sikes Airport Infrastructure Upgrade DEPARTMENT: Airport BCC DISTRICT: All STATEMENT OF ISSUE: The Board of County Commissioners is requested to accept a Joint Participation agreement (JPA) from the Florida Department of Transportation to upgrade certain infrastructure needs at Bob Sikes Airport. BACKGROUND: This grant offer of $50,000.00 (80% of a $62,500 project) is to assist in the upgrade of Bob Sikes Airport, erosion control and infrastructure related to failed stormwater drainage pipe at the north end of the airfield. Erosion has been a consistent problem at Bob Sikes Airport over the years. The majority of the problems have been resolved with the recent significant rehabilitation of the runway and taxiway, but this problem is localized to the repair of a broken stormwater drainage pipe as stated in Exhibit "A" of the JPA. OPTIONS: Approve, disapprove or table RECOMMENDATIONS: The Airport staff recommends the Board approve this grant offer and authorize the Chairman to sign the attached Signature Resolution. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 199 Packet Pg. 200 Packet Pg. 201 Packet Pg. 202 Packet Pg. 203 Packet Pg. 204 Packet Pg. 205 Packet Pg. 206 Packet Pg. 207 Packet Pg. 208 Packet Pg. 209 Packet Pg. 210 Packet Pg. 211 Packet Pg. 212 Packet Pg. 213 Packet Pg. 214 Packet Pg. 215 Packet Pg. 216 Packet Pg. 217 Packet Pg. 218 Packet Pg. 219 Packet Pg. 220 Packet Pg. 221 Packet Pg. 222 Packet Pg. 223 Packet Pg. 224 Packet Pg. 225 Packet Pg. 226 Packet Pg. 227 Packet Pg. 228 Packet Pg. 229  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Sunil Harman SUBJECT: [Airports] Eglin AFB ARFF Facility-RFQ's & Review Committee for Constuction Administartion DEPARTMENT: Airport BCC DISTRICT: All STATEMENT OF ISSUE: The Board of County Commissioners is requested to approve the request to solicit Requests for Qualifications (RFQ) and proposals for construction, administration and inspection services for the Aircraft Rescue and Fire Fighting Station on Eglin AFB. Staff also requests approval of the following members as a Qualifications Review Committee: 1. Airports Director 2. Airports Deputy Director 3. EAFB Fire Chief 4. Purchasing Agent The County's Purchasing Department will coordinate the process and serve as a facilitator for any meetings of the review committee. BACKGROUND: The Board of County Commissioners approved the ARFF design on 4/16/13 and approved the construction award to Birkshire Inc. On 12/17/13. The Board of County Commissioners approved the Chairman to sign the construction contracts on 2/18/14. OPTIONS: Approve, Reject or Table RECOMMENDATIONS: Approve the request to solicit RFQ's for construction administration and inspection services for the Aircraft Rescue and Fire Fighting Station on Eglin AFB and appoint members to a review committee as described. RECOMMENDED BY: Packet Pg. 230 APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 231  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: John Hofstad SUBJECT: 2014 Emerald Coast Challenge Motorcycle Rodeo & Skills Training DEPARTMENT: Public Works BCC DISTRICT: Two STATEMENT OF ISSUE: The Emerald Coast Blue Knights and the Okaloosa County Sheriff are requesting the use of a portion of the parking lot at the Boardwalk for the 2014 Emerald Coast Challenge Motorcycle Rodeo. BACKGROUND: County Ordinance #13-07 (regulation of county recreational areas, including parks and beaches) addresses Special Events at county parks, beaches or recreational areas within Okaloosa County. A request has been received from the Okaloosa County Sheriff's Office to use a portion of the parking lot at the Boardwalk for the 2014 Emerald Coast Challenge Motorcycle Rodeo. The event will be held from Thursday, April 10th through Saturday, April 12th, 2014. Motorcycle riders from as far away as Michigan and Texas are anticipated to attend this event. Estimated attendance is from 40 to 60 people each day. All monies raised by this event will be presented to the Emerald Coast Children's Advocacy Center. As this is a charity event they have requested a waiver of any Special Event Permit fees. This request has been reviewed by Public Works, Public Safety, the Sheriff's Office and the leaseholder at the Boardwalk. OPTIONS: Approve / Disapprove request for a Special Event permit to host the 2014 Emerald Coast Challenge Motorcycle Rodeo on Okaloosa Island. RECOMMENDATIONS: Approve the request for a Special Event Permit to utilize a portion of the parking lot at the Boardwalk for the 2014 Emerald Coast Challenge Motorcycle Rodeo as submitted and consideration of the Board for the waiver of permit fees. RECOMMENDED BY: Packet Pg. 232 APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 233 Packet Pg. 234 Packet Pg. 235 Packet Pg. 236 Packet Pg. 237 Packet Pg. 238  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: John Hofstad SUBJECT: Special Event Permit - Brand / Parrish Wedding DEPARTMENT: Public Works BCC DISTRICT: 2 STATEMENT OF ISSUE: Island Sands Beach Weddings is requesting the use of County public beach behind Pelican Isle Condominiums for a large wedding. BACKGROUND: County Ordinance #13-07 (regulation of county recreational areas, including parks and beaches) addresses Special Events at county parks, beaches or recreational areas within Okaloosa County. A request has been received from Nicki Cox from Island Sands Beach Weddings for use of County public beach behind Pelican Isle Condominiums for a wedding with approximately 160 people in attendance. The wedding is to be held on Saturday, May 31, 2014 from 6:00 p.m. to 8:00 p.m. This request has been reviewed by Public Works, Public Safety and the Sheriff's Office. OPTIONS: Approve / Disapprove RECOMMENDATIONS: Approve the request for a Special Event Permit to utilize County public beach behind Pelican Isle Condominiums for the Brand / Parrish wedding, as submitted. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 239 Packet Pg. 240  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: John Hofstad SUBJECT: State Water Artificial Reef Permits DEPARTMENT: Public Works BCC DISTRICT: All STATEMENT OF ISSUE: The Okaloosa County Artificial Reef Program (OCARP) has received conditional approval of permits for four artificial reef deployment areas in State waters. These permits must be approved by the Board and submitted to US Army Corp of Engineers (Corps) District Engineer for final approval. The signature by the District Engineer validates the permits. BACKGROUND: Nearly three years ago, OCARP prepared and submitted joint permit applications for four artificial reef deployment areas; Fish Haven 13, Fish Haven 14, Fish Haven 15 and Fish Haven 16, to the Florida Department of Environmental Protection (FDEP) and Corps. The FDEP permit approvals were granted just over a month after their respective submission dates but the Corps approvals were not granted until the week of March 10, 2014. The FDEP permits expire 5 years after approval and the Corps permits have 10 year durations. If necessary, the FDEP permits can be extended if the deployment area construction is not completed within 5 years. Each of the four Fish Haven deployment area permits include 9 proposed reef sites and will be built out utilizing funding from Florida Fish and Wildlife (FWC) grants, Okaloosa County Tourist Development Department and Natural Resource Damage Assessment (NRDA). Materials for the reefs include prefabricated reef modules and donated materials from the US Air Force, City of Fort Walton Beach and Mid-Bay Bridge Authority. Construction of reefs within Fish Havens 13-16 is slated to commence in the summer of 2014 with the 2013 FWC Supplemental Grant project. This project utilizes US Air Force material to construct reefs at the center points of the newly permitted deployment areas. OPTIONS: Approve/Disapprove RECOMMENDATIONS: Staff recommends the Board authorize the Chairman to sign the permits. RECOMMENDED BY: Packet Pg. 241 APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 242  DEPARTMENT OF THE ARMY JACKSONVILLE DISTRICT CORPS OF ENGINEERS PENSACOLA REGULATORY OFFICE 41 NORTH JEFFERSON STREET, SUITE 301 PENSACOLA, FLORIDA 32502 REPLY TO ATTENTION OF March 10, 2014 Regulatory Division North Permits Branch Pensacola Permits Section SAJ-2011-03485 (SP-SWA) Okaloosa County Board of County Commissioners 1804 Lewis Turner Boulevard, Suite 100 Ft. Walton Beach, Florida 32547 Gentlemen: The U.S. Army Corps of Engineers (Corps) has completed the review and evaluation of your Department of the Army permit application, number SAJ-2011-03485. Our regulations require that you have an opportunity to review the terms and conditions prior to final signature by the Department of the Army. Enclosed is an unsigned Department of the Army permit instrument (permit). Please read carefully the Special Conditions beginning on page 3 of the permit. These were developed to apply specifically to your project. Water Quality Certification is also required prior to issuance of a permit. The Corps has received a copy of the State of Florida certification for your project. In accordance with General Condition 5 of the permit, any special conditions of the Water Quality Certification have been attached to the Department of the Army permit. Instructions for Objecting to Permit Terms and Conditions: This letter contains an initial proffered permit for your proposed project. If you object to certain terms and conditions contained within the permit, you may request that the permit be modified. Enclosed you will find a Notification of Administrative Appeal Options and Process fact sheet and Request for Appeal (RFA) form. If you choose to object to certain terms and conditions of the permit, you must follow the directions provided in Section 1, Part A and submit the completed RFA form to the letterhead address. In order for an RFA to be accepted by the Corps, the Corps must determine that it is complete, that it meets the criteria under 33 CFR Part 331.5, and that it has been received by the District office within 60 days of the date of the RFA. Should you decide to submit an RFA form, it must be received at the letterhead address by May 9, 2014. Instructions for Accepting Terms and Conditions and Finalizing Your Permit: It is not necessary to submit an RFA form to the District office, if you do not object to the decision in this letter. In this case, the permit must be signed by the applicant in the space provided on the signature page of the permit. In the case of corporations, Packet Pg. 243  -2- acceptance must be by an officer of that corporation authorized to sign on behalf of the corporation. The party responsible for assuring the work is done in accordance with the permit terms and conditions must sign the permit. Please type or print the name and title of the person signing below the signature and the date signed. SIGN (PAGE 9) AND RETURN THE ENTIRE PERMIT, INCLUDING ALL ATTACHMENTS, TO THE LETTERHEAD ADDRESS The permit will be signed by the District Engineer or his representative. The Corps will add the permit expiration date to the permit and return the permit to you. It is important to note that the permit is not valid until the District Engineer or his representative signs it. Please note U.S. Coast Guard regulations may require you as permittee to provide information for a Notice to the maritime community regarding your project. You should contact the Coast Guard Sector Mobile Waterways Management Branch (spw), 1500 15th Street, Mobile, AL 36615 or by phone at 251-441-5684 to determine if a Notice is necessary. Also any safety lights, signs and signals prescribed by the U.S. Coast Guard through their regulations or otherwise, must be installed and maintained at your expense as permittee on authorized facilities in navigable waters of the United States. To receive a U.S. Coast Guard Private Aids to Navigation marking determination, you are advised to contact the Eighth Coast Guard District (dpw), 500 Poydras St. Suite 1230, New Orleans, LA 70130, 504-671-2328 or via email to: D8oanPATON@uscg.mil prior to installation/construction of any fixed structures. For general information related to Private Aids to Navigation please visit the Eighth CG District web site at: http://www.uscg.mil/d8/waterways/PATON.Home.asp. Thank you for your cooperation with our permit program. The Corps’ Jacksonville District Regulatory Division is committed to improving service to our customers. We strive to perform our duty in a friendly and timely manner while working to preserve our environment. We invite you to complete our automated Customer Service Survey at http://corpsmapu.usace.army.mil/cm_apex/f?p=regulatory_survey. Please be aware this Internet address is case sensitive; and, you will need to enter it exactly as it appears above. Your input is appreciated – favorable or otherwise. If you have any questions concerning this application, you may contact Steve Andrews Jr. in writing at the letterhead address, by electronic mail at Packet Pg. 244 Packet Pg. 245 Packet Pg. 246 NOTIFICATION OF ADMINISTRATIVE APPEAL OPTIONS AND PROCESS AND REQUEST FOR APPEAL Applicant: Okaloosa County BOCC File Number: SAJ-2011-03485 Date: 10 March 2014 Attached is: See Section below X INITIAL PROFFERED PERMIT (Standard Permit or Letter of permission) A PROFFERED PERMIT (Standard Permit or Letter of permission) B PERMIT DENIAL C APPROVED JURISDICTIONAL DETERMINATION D PRELIMINARY JURISDICTIONAL DETERMINATION E SECTION I - The following identifies your rights and options regarding an administrative appeal of the above decision. Additional information may be found at http://www.usace.army.mil/CECW/Pages/reg_materials.aspx or Corps regulations at 33 CFR Part 331. A: INITIAL PROFFERED PERMIT: You may accept or object to the permit. • ACCEPT: If you received a Standard Permit, you may sign the permit document and return it to the district engineer for final authorization. If you received a Letter of Permission (LOP), you may accept the LOP and your work is authorized. Your signature on the Standard Permit or acceptance of the LOP means that you accept the permit in its entirety, and waive all rights to appeal the permit, including its terms and conditions, and approved jurisdictional determinations associated with the permit. • OBJECT: If you object to the permit (Standard or LOP) because of certain terms and conditions therein, you may request that the permit be modified accordingly. You must complete Section II of this form and return the form to the district engineer. Your objections must be received by the district engineer within 60 days of the date of this notice, or you will forfeit your right to appeal the permit in the future. Upon receipt of your letter, the district engineer will evaluate your objections and may: (a) modify the permit to address all of your concerns, (b) modify the permit to address some of your objections, or (c) not modify the permit having determined that the permit should be issued as previously written. After evaluating your objections, the district engineer will send you a proffered permit for your reconsideration, as indicated in Section B below. B: PROFFERED PERMIT: You may accept or appeal the permit • ACCEPT: If you received a Standard Permit, you may sign the permit document and return it to the district engineer for final authorization. If you received a Letter of Permission (LOP), you may accept the LOP and your work is authorized. Your signature on the Standard Permit or acceptance of the LOP means that you accept the permit in its entirety, and waive all rights to appeal the permit, including its terms and conditions, and approved jurisdictional determinations associated with the permit. • APPEAL: If you choose to decline the proffered permit (Standard or LOP) because of certain terms and conditions therein, you may appeal the declined permit under the Corps of Engineers Administrative Appeal Process by completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of this notice. C: PERMIT DENIAL: You may appeal the denial of a permit under the Corps of Engineers Administrative Appeal Process by completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of this notice. D: APPROVED JURISDICTIONAL DETERMINATION: You may accept or appeal the approved JD or provide new information. • ACCEPT: You do not need to notify the Corps to accept an approved JD. Failure to notify the Corps within 60 days of the date of this notice, means that you accept the approved JD in its entirety, and waive all rights to appeal the approved JD. • APPEAL: If you disagree with the approved JD, you may appeal the approved JD under the Corps of Engineers Administrative Appeal Process by completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of this notice. Packet Pg. 247 SECTION II - REQUEST FOR APPEAL or OBJECTIONS TO AN INITIAL PROFFERED PERMIT REASONS FOR APPEAL OR OBJECTIONS: (Describe your reasons for appealing the decision or your objections to an initial proffered permit in clear concise statements. You may attach additional information to this form to clarify where your reasons or objections are addressed in the administrative record.) ADDITIONAL INFORMATION: The appeal is limited to a review of the administrative record, the Corps memorandum for the record of the appeal conference or meeting, and any supplemental information that the review officer has determined is needed to clarify the administrative record. Neither the appellant nor the Corps may add new information or analyses to the record. However, you may provide additional information to clarify the location of information that is already in the administrative record. POINT OF CONTACT FOR QUESTIONS OR INFORMATION: If you have questions regarding this decision and/or the If you only have questions regarding the appeal process appeal process you may contact: you may also contact: for process: Project Manager as noted in letter Stuart Santos 904-232-2018 RIGHT OF ENTRY: Your signature below grants the right of entry to Corps of Engineers personnel, and any government consultants, to conduct investigations of the project site during the course of the appeal process. You will be provided a 15 day notice of any site investigation, and will have the opportunity to participate in all site investigations. Date: Telephone number: _______________________________ Signature of appellant or agent. Packet Pg. 248  DEPARTMENT OF THE ARMY PERMIT Permittee: Okaloosa County Board of County Commissioners 1804 Lewis Turner Boulevard, Suite 100 Ft. Walton Beach, Florida 32547 Permit No: SAJ-2011-03485 (SP-SWA) Issuing Office: U.S. Army Engineer District, Jacksonville NOTE: The term "you" and its derivatives, as used in this permit, means the permittee or any future transferee. The term "this office" refers to the appropriate district or division office of the Corps of Engineers having jurisdiction over the permitted activity or the appropriate official of that office acting under the authority of the commanding officer. You are authorized to perform work in accordance with the terms and conditions specified below. Project Description: The applicant proposes to establish an artificial reef area, which would be referred to as the “Fish Haven #13”. It would consist of a ¼ by ¼ mile deployment area, totaling 40 acres, which would provide enhanced habitat and recreational fishing and diving opportunities upon implementation of the project. Additionally, there would be a deployment buffer of 50 feet on each side. Material to be deployed would consist of clean concrete or rock and prefabricated structures that are a mixture of clean concrete and heavy gauge steel. The material to be deployed would have a maximum profile height of no more than 30 feet and would result in a minimum authorized depth of -33 feet at mean lower low water MLLW. The work described above is to be completed in accordance with the three (3) pages of drawings affixed at the end of this permit instrument. Project Location: The project site is located in the Gulf of Mexico, 2.43 nautical miles southwest of Destin pass, 3.06 nautical miles north of the East-West Safety Fairway and 1.93 nautical miles south of Okaloosa Island off of Okaloosa County, Florida. Latitude & Longitude: NE Site Corner: Latitude: 30.358333° North Longitude: 86.545833° West NW Site Corner: Latitude: 30.358333° North Longitude: 86.550016° West SE Site Corner: Latitude: 30.3547° North Longitude: 86.545833° West Packet Pg. 249 PERMIT NUMBER: SAJ-2011-03485 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 2 of 11 SW Site Corner: Latitude: 30.3547° North Longitude: 86.550016° West Permit Conditions General Conditions: 1. The time limit for completing the work authorized ends on March 10, 2024. If you find that you need more time to complete the authorized activity, submit your request for a time extension to this office for consideration at least one month before the above date is reached. 2. You must maintain the activity authorized by this permit in good condition and in conformance with the terms and conditions of this permit. You are not relieved of this requirement if you abandon the permitted activity, although you may make a good faith transfer to a third party in compliance with General Condition 4 below. Should you wish to cease to maintain the authorized activity or should you desire to abandon it without a good faith transfer, you must obtain a modification of this permit from this office, which may require restoration of the area. 3. If you discover any previously unknown historic or archeological remains while accomplishing the activity authorized by this permit, you must immediately notify this office of what you have found. We will initiate the Federal and State coordination required to determine if the remains warrant a recovery effort or if the site is eligible for listing in the National Register of Historic Places. 4. If you sell the property associated with this permit, you must obtain the signature and the mailing address of the new owner in the space provided and forward a copy of the permit to this office to validate the transfer of this authorization. 5. If a conditioned water quality certification has been issued for your project, you must comply with the conditions specified in the certification as special conditions to this permit. For your convenience, a copy of the certification is attached if it contains such conditions. 6. You must allow representatives from this office to inspect the authorized activity at any time deemed necessary to ensure that it is being or has been accomplished in accordance with the terms and conditions of your permit. Packet Pg. 250 PERMIT NUMBER: SAJ-2011-03485 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 3 of 11 Special Conditions: 1. Reporting Addresses: The Permittee shall reference this permit number, SAJ- 2011-03485 (SP-SWA), on all correspondence. Unless specifically notified to the contrary, the Permittee shall use the following addresses for transmitting correspondence to the referenced agencies: (a) U.S. Army Corps of Engineers, Regulatory Division, Enforcement Section 41 North Jefferson Street, Suite 301 Pensacola, Florida 32502 The Permittee shall reference this permit number, SAJ-2010-03163 (SP-SWA), on all submittals. Or email at: CESAJ-ComplyDocs@usace.army.mil (b) National Oceanic and Atmospheric Administration (NOAA), Marine Chart Division, Office of Coast Survey, N/CS26, Sta. 7317 1315 East-West Highway Silver Springs, MD, 20910-3282 Or email at: ocs.ndb@noaa.gov. (c) Commander, U.S. Coast Guard (USCG) 8th Coast Guard District Hale Boggs Federal Building 500 Poydras Street New Orleans, LA 70130 (d) Florida Fish and Wildlife Conservation Commission (FWC), Artificial Reef Program, 620 S. Meridian Street, Box 4B2 Tallahassee, FL 32399. Or email at: artificialreefdeployments@MyFWC.com 2. Initial Agency Notification: The Permittee shall provide to the Corps, NOAA and USCG written notification of the planned deployment start date at least two weeks prior to the initial deployment on the authorized artificial reef site. 3. Protection of Existing Resources: The Permittee shall not deploy artificial reef materials until an assessment of the bottom conditions have been accomplished by diver, submersible video camera, fathometer, depth/bottom sounder (e.g. “fish finder”), or side-scan sonar. The inspection of the deployment area may occur at the time of deployment, but no more than one year prior to deployment. The Permittee shall Packet Pg. 251 PERMIT NUMBER: SAJ-2011-03485 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 4 of 11 maintain a deployment buffer of at least 200 feet from any submerged beds of sea grasses, coral reefs, live bottom, areas supporting growth of sponges, sea fans, soft corals, and other sessile macroinvertebrates generally associated with rock outcrops, oyster reefs, scallop beds, clam beds, or areas where there are unique or unusual concentrations of bottom-dwelling marine organisms. If, during the inspection, evidence is observed of cultural/archaeological resources, such as sunken vessels, ballast, historic refuse piles, or careenage areas the Corps will be notified by the Permittee and the above referenced deployment buffer will be implemented. The Permittee shall maintain a record of the information gained during the inspection such that it can be provided upon request to the Corps. 4. Pre-Deployment Notification: No less than 14 days prior to deployment of material on an artificial reef, the Permittee shall transmit by electronic mail (“email”) a complete and signed “Florida Artificial Reef Materials Cargo Manifest and Pre-Deployment Notification” form, attached to this permit, to the Corps and FWC to allow inspection of the proposed reef materials as deemed necessary by the agencies. Inspection is allowable at the staging area. By signing the Pre-Deployment Notification the Permittee certifies that all materials are free from asphalt, petroleum, other hydrocarbons and toxic residues. The Permittee shall not deploy material if notified by the Corps or FWC that the material is questionable. The material needs to be evaluated before it is released for deployment. Any material that is deemed unacceptable for reef material will be disposed in an approved upland disposal site. Deployment of the material shall not occur until after the end of the 14-day inspection period. The Permittee shall ensure both a copy of the Corps permit and the signed “Florida Artificial Reef Materials Cargo Manifest and Pre-Deployment Notification Form” are maintained aboard the deployment vessel at all times during loading, transit, and deployment. 5. Post-Deployment Placement Report/As-Built Drawing: No less than 30 days after deployment at the reef site, the Permittee shall transmit by email to the Corps, FWC, and NOAA a complete and signed “Florida Artificial Reef Materials Placement Report and Post-Deployment Notification” form attached to this permit. Please note, the Corps requires the latitude and longitude to be accurate within 5 meters horizontal distance on the post-deployment report. Attach to the report, an as-built drawing that contains the approximate deployment configurations and the height of the material after placement. Depth shall be verified utilizing fathometer, depth sounder, or similar device accurate to within 1 meter. Also, include information on the condition of the material at the time of deployment. The report and drawing shall be limited to a few pages per deployment. Representative photographs and/or video, if available, are encouraged to be submitted. Packet Pg. 252 PERMIT NUMBER: SAJ-2011-03485 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 5 of 11 6. Ownership/Maintenance/Liability: By signing this permit, the Permittee certifies and acknowledges ownership of all artificial reef materials deployed on the reef, accepts responsibility for maintenance of the artificial reef, and possesses the ability to assume liability for all damages that may arise with respect to the artificial reef. 7. Assurance of Navigation and Maintenance: The Permittee understands and agrees that, if future operations by the United States require the removal, relocation, or other alteration, of the structures or work herein authorized, or if in the opinion of the Secretary of the Army or his authorized representative, said structure or work shall cause unreasonable obstruction to the free navigation of the navigable waters, the Permittee will be required, upon due notice from the Corps of Engineers, to remove, relocate, or alter the structural work or obstructions caused thereby, without expense to the United States. No claim shall be made against the United States on account of any such removal or alteration. 8. Sea Turtle, Smalltooth Sawfish and Sturgeon Conditions: The Permittee shall comply with the attached National Marine Fisheries Service’s “Sea Turtle and Smalltooth Sawfish Construction Conditions”, which also applies to sturgeon. 9. Manatee Conditions: The Permittee shall comply with the attached “Standard Manatee Conditions for In-Water Work – 2011.” 10. Protected Species Guidance: The Permittee shall comply with the attached “Vessel Strike Avoidance Measures and Injured or Dead Protected Species Reporting” guidance for marine turtles and marine mammals. 11. Self-Certification: Within 60 days of completion of the authorized work or at the expiration of the construction authorization of this permit, whichever occurs first, the Permittee shall complete the attached “Self-Certification Statement of Compliance” form and submit to the Corps. In the event that the completed work deviates, in any manner, from the authorized work, the Permittee shall describe, on the Self-Certification Form, the deviations between the work authorized by the permit and the work as constructed. Please note that the description of any deviations on the Self-Certification Form does not constitute approval of any deviations by the Corps. 12. Cultural Resources/Historic Properties: a. No structure or work shall adversely affect impact or disturb properties listed in the National Register of Historic Places (NRHP) or those eligible for inclusion in the NRHP. b. If during the ground disturbing activities and construction work within the permit area, there are archaeological/cultural materials encountered which were not the Packet Pg. 253 PERMIT NUMBER: SAJ-2011-03485 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 6 of 11 subject of a previous cultural resources assessment survey (and which shall include, but not be limited to: pottery, modified shell, flora, fauna, human remains, ceramics, stone tools or metal implements, dugout canoes, evidence of structures or any other physical remains that could be associated with Native American cultures or early colonial or American settlement), the Permittee shall immediately stop all work in the vicinity and notify the Corps. The Corps shall then notify the Florida State Historic Preservation Officer (SHPO) and the appropriate Tribal Historic Preservation Officer(s) (THPO(s)) to assess the significance of the discovery and devise appropriate actions. c. A cultural resources assessment may be required of the permit area, if deemed necessary by the SHPO, THPO(s), or Corps, in accordance with 36 CFR 800 or 33 CFR 325, Appendix C (5). Based, on the circumstances of the discovery, equity to all parties, and considerations of the public interest, the Corps may modify, suspend or revoke the permit in accordance with 33 CFR Part 325.7. Such activity shall not resume on non- federal lands without written authorization from the SHPO and the Corps. d. In the unlikely event that unmarked human remains are identified on non-federal lands, they will be treated in accordance with Section 872.05 Florida Statutes. All work in the vicinity shall immediately cease and the Permittee shall immediately notify the medical examiner, Corps, and State Archeologist. The Corps shall then notify the appropriate SHPO and THPO(s). Based, on the circumstances of the discovery, equity to all parties, and considerations of the public interest, the Corps may modify, suspend or revoke the permit in accordance with 33 CFR Part 325.7. Such activity shall not resume without written authorization from the State Archeologist, SHPO and the Corps. e. In the unlikely event that human remains are encountered on federal or tribal lands, or in situations where Archaeological Resources Protection Act of 1979, or Native American Graves Protection Repatriation Act of 1990 applies, all work in the vicinity shall immediately cease and the Permittee immediately notify the Corps. The Corps shall then notify the appropriate THPO(s) and SHPO. Based, on the circumstances of the discovery, equity to all parties, and considerations of the public interest, the Corps may modify, suspend or revoke the permit in accordance with 33 CFR Part 325.7. After such notification, project activities on federal lands shall not resume without written authorization from the Corps, and/or appropriate THPO(s), SHPO, and federal manager. After such notification, project activities on tribal lands shall not resume without written authorization from the appropriate THPO(s) and the Corps. Further Information: 1. Congressional Authorities: You have been authorized to undertake the activity described above pursuant to: Packet Pg. 254 PERMIT NUMBER: SAJ-2011-03485 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 7 of 11 (X) Section 10 of the Rivers and Harbors Act of 1899 (33 U.S.C. 403). (X) Section 404 of the Clean Water Act (33 U.S.C. 1344). ( ) Section 103 of the Marine Protection, Research and Sanctuaries Act of 1972 (33 U.S.C. 1413). 2. Limits of this authorization. a. This permit does not obviate the need to obtain other Federal, State, or local authorizations required by law. b. This permit does not grant any property rights or exclusive privileges. c. This permit does not authorize any injury to the property or rights of others. d. This permit does not authorize interference with any existing or proposed Federal projects. 3. Limits of Federal Liability. In issuing this permit, the Federal Government does not assume any liability for the following: a. Damages to the permitted project or uses thereof as a result of other permitted or unpermitted activities or from natural causes. b. Damages to the permitted project or uses thereof as a result of current or future activities undertaken by or on behalf of the United States in the public interest. c. Damages to persons, property, or to other permitted or unpermitted activities or structures caused by the activity authorized by this permit. d. Design or construction deficiencies associated with the permitted work. e. Damage claims associated with any future modification, suspension, or revocation of this permit. 4. Reliance on Applicant's Data: The determination of this office that issuance of this permit is not contrary to the public interest was made in reliance on the information you provided. Packet Pg. 255 PERMIT NUMBER: SAJ-2011-03485 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 8 of 11 5. Reevaluation of Permit Decision: This office may reevaluate its decision on this permit at any time the circumstances warrant. Circumstances that could require a reevaluation include, but are not limited to, the following: a. You fail to comply with the terms and conditions of this permit. b. The information provided by you in support of your permit application proves to have been false, incomplete, or inaccurate (see 4 above). c. Significant new information surfaces which this office did not consider in reaching the original public interest decision. Such a reevaluation may result in a determination that it is appropriate to use the suspension, modification, and revocation procedures contained in 33 CFR 325.7 or enforcement procedures such as those contained in 33 CFR 326.4 and 326.5. The referenced enforcement procedures provide for the issuance of an administrative order requiring you comply with the terms and conditions of your permit and for the initiation of legal action where appropriate. You will be required to pay for any corrective measures ordered by this office, and if you fail to comply with such directive, this office may in certain situations (such as those specified in 33 CFR 209.170) accomplish the corrective measures by contract or otherwise and bill you for the cost. 6. Extensions: General Condition 1 establishes a time limit for the completion of the activity authorized by this permit. Unless there are circumstances requiring either a prompt completion of the authorized activity or a reevaluation of the public interest decision, the Corps will normally give favorable consideration to a request for an extension of this time limit. Packet Pg. 256 PERMIT NUMBER: SAJ-2011-03485 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 9 of 11 Your signature below, as permittee, indicates that you accept and agree to comply with the terms and conditions of this permit. _______________________________________ ____________________ (PERMITTEE) (DATE) _______________________________________ (PERMITTEE NAME-PRINTED) This permit becomes effective when the Federal official, designated to act for the Secretary of the Army, has signed below. _______________________________________ ____________________ (DISTRICT ENGINEER) (DATE) Alan M. Dodd, Colonel, U.S. Army District Commander Packet Pg. 257 PERMIT NUMBER: SAJ-2011-03485 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 10 of 11 When the structures or work authorized by this permit are still in existence at the time the property is transferred, the terms and conditions of this permit will continue to be binding on the new owner(s) of the property. To validate the transfer of this permit and the associated liabilities associated with compliance with its terms and conditions, have the transferee sign and date below. _______________________________________ ____________________ (TRANSFEREE-SIGNATURE) (DATE) _______________________________________ (NAME-PRINTED) _______________________________________ (ADDRESS) ______________________________________________________ (CITY, STATE, AND ZIP CODE) Packet Pg. 258 PERMIT NUMBER: SAJ-2011-03485 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 11 of 11 Attachments to Department of the Army Permit Number SAJ-2011-03485 1. PERMIT DRAWINGS: Three (3) pages, dated 24 February 2014. 2. WATER QUALITY CERTIFICATION: Specific Conditions of the water quality permit/certification in accordance with General Condition number 5 on page 3 of this DA permit. Six (6) pages. 3. SEA TURTLE, SAWFISH AND STURGEON CONDITIONS: One (1) page. 4. MANATEE CONDITIONS: One (1) page. 5. VESSEL STRIKE AVOIDANCE MEASURES: Two (2) pages. 6. FLORIDA ARTIFICIAL REEF MATERIALS CARGO MANIFEST AND PRE- DEPLOYMENT NOTIFICATION FORM: 7. FLORIDA ARTIFICIAL REEF MATERIALS PLACEMENT REPORT AND POST- DEPLOYMENT NOTIFICATION FORM: 8. SELF-CERTIFICATION FORM: One (1) page. Packet Pg. 259 Packet Pg. 260 Packet Pg. 261 Packet Pg. 262  UNITED STATES DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration NATIONAL MARINE FISHERIES SERVICE Southeast Regional Office 263 13th Avenue South St. Petersburg, FL 33701 SEA TURTLE AND SMALLTOOTH SAWFISH CONSTRUCTION CONDITIONS The permittee shall comply with the following protected species construction conditions: a. The permittee shall instruct all personnel associated with the project of the potential presence of these species and the need to avoid collisions with sea turtles and smalltooth sawfish. All construction personnel are responsible for observing water-related activities for the presence of these species. b. The permittee shall advise all construction personnel that there are civil and criminal penalties for harming, harassing, or killing sea turtles or smalltooth sawfish, which are protected under the Endangered Species Act of 1973. c. Siltation barriers shall be made of material in which a sea turtle or smalltooth sawfish cannot become entangled, be properly secured, and be regularly monitored to avoid protected species entrapment. Barriers may not block sea turtle or smalltooth sawfish entry to or exit from designated critical habitat without prior agreement from the National Marine Fisheries Service’s Protected Resources Division, St. Petersburg, Florida. d. All vessels associated with the construction project shall operate at “no wake/idle” speeds at all times while in the construction area and while in water depths where the draft of the vessel provides less than a four-foot clearance from the bottom. All vessels will preferentially follow deep-water routes (e.g., marked channels) whenever possible. e. If a sea turtle or smalltooth sawfish is seen within 100 yards of the active daily construction/dredging operation or vessel movement, all appropriate precautions shall be implemented to ensure its protection. These precautions shall include cessation of operation of any moving equipment closer than 50 feet of a sea turtle or smalltooth sawfish. Operation of any mechanical construction equipment shall cease immediately if a sea turtle or smalltooth sawfish is seen within a 50-ft radius of the equipment. Activities may not resume until the protected species has departed the project area of its own volition. f. Any collision with and/or injury to a sea turtle or smalltooth sawfish shall be reported immediately to the National Marine Fisheries Service’s Protected Resources Division (727-824- 5312) and the local authorized sea turtle stranding/rescue organization. g. Any special construction conditions, required of your specific project, outside these general conditions, if applicable, will be addressed in the primary consultation. Revised: March 23, 2006 O:\forms\Sea Turtle and Smalltooth Sawfish Construction Conditions.doc Packet Pg. 263  STANDARD MANATEE CONDITIONS FOR IN-WATER WORK 2011 The permittee shall comply with the following conditions intended to protect manatees from direct project effects: a. All personnel associated with the project shall be instructed about the presence of manatees and manatee speed zones, and the need to avoid collisions with and injury to manatees. The permittee shall advise all construction personnel that there are civil and criminal penalties for harming, harassing, or killing manatees which are protected under the Marine Mammal Protection Act, the Endangered Species Act, and the Florida Manatee Sanctuary Act. b. All vessels associated with the construction project shall operate at "Idle Speed/No Wake” at all times while in the immediate area and while in water where the draft of the vessel provides less than a four-foot clearance from the bottom. All vessels will follow routes of deep water whenever possible. c. Siltation or turbidity barriers shall be made of material in which manatees cannot become entangled, shall be properly secured, and shall be regularly monitored to avoid manatee entanglement or entrapment. Barriers must not impede manatee movement. d. All on-site project personnel are responsible for observing water-related activities for the presence of manatee(s). All in-water operations, including vessels, must be shutdown if a manatee(s) comes within 50 feet of the operation. Activities will not resume until the manatee(s) has moved beyond the 50-foot radius of the project operation, or until 30 minutes elapses if the manatee(s) has not reappeared within 50 feet of the operation. Animals must not be herded away or harassed into leaving. e. Any collision with or injury to a manatee shall be reported immediately to the Florida Fish and Wildlife Conservation Commission (FWC) Hotline at 1-888-404-3922. Collision and/or injury should also be reported to the U.S. Fish and Wildlife Service in Jacksonville (1-904- 731-3336) for north Florida or Vero Beach (1-772-562-3909) for south Florida, and to FWC at ImperiledSpecies@myFWC.com Packet Pg. 264  Vessel Strike Avoidance Measures and Reporting for Mariners NOAA Fisheries Service, Southeast Region Background The National Marine Fisheries Service (NMFS) has determined that collisions with vessels can injure or kill protected species (e.g., endangered and threatened species, and marine mammals). The following standard measures should be implemented to reduce the risk associated with vessel strikes or disturbance of these protected species to discountable levels. NMFS should be contacted to identify any additional conservation and recovery issues of concern, and to assist in the development of measures that may be necessary. Protected Species Identification Training Vessel crews should use an Atlantic and Gulf of Mexico reference guide that helps identify protected species that might be encountered in U.S. waters of the Atlantic Ocean, including the Caribbean Sea, and Gulf of Mexico. Additional training should be provided regarding information and resources available regarding federal laws and regulations for protected species, ship strike information, critical habitat, migratory routes and seasonal abundance, and recent sightings of protected species. Vessel Strike Avoidance In order to avoid causing injury or death to marine mammals and sea turtles the following measures should be taken when consistent with safe navigation: 1. Vessel operators and crews should maintain a vigilant watch for marine mammals and sea turtles to avoid striking sighted protected species. 2. When whales are sighted, maintain a distance of 100 yards or greater between the whale and the vessel. 3. When sea turtles or small cetaceans are sighted, attempt to maintain a distance of 50 yards or greater between the animal and the vessel whenever possible. 4. When small cetaceans are sighted while a vessel is underway (e.g., bow-riding), attempt to remain parallel to the animal’s course. Avoid excessive speed or abrupt changes in direction until the cetacean has left the area. 5. Reduce vessel speed to 10 knots or less when mother/calf pairs, groups, or large assemblages of cetaceans are observed near an underway vessel, when safety permits. A single cetacean at the surface may indicate the presence of submerged animals in the vicinity; therefore, prudent precautionary measures should always be exercised. The vessel should attempt to route around the animals, maintaining a minimum distance of 100 yards whenever possible. NMFS Southeast Region Vessel Strike Avoidance Measures and Reporting for Mariners; revised February 2008. Packet Pg. 265  6. Whales may surface in unpredictable locations or approach slowly moving vessels. When an animal is sighted in the vessel’s path or in close proximity to a moving vessel and when safety permits, reduce speed and shift the engine to neutral. Do not engage the engines until the animals are clear of the area. Additional Requirements for the North Atlantic Right Whale 1. If a sighted whale is believed to be a North Atlantic right whale, federal regulation requires a minimum distance of 500 yards be maintained from the animal (50 CFR 224.103 (c)). 2. Vessels entering North Atlantic right whale critical habitat are required to report into the Mandatory Ship Reporting System. 3. Mariners should check with various communication media for general information regarding avoiding ship strikes and specific information regarding North Atlantic right whale sighting locations. These include NOAA weather radio, U.S. Coast Guard NAVTEX broadcasts, and Notices to Mariners. Commercial mariners calling on United States ports should view the most recent version of the NOAA/USCG produced training CD entitled “A Prudent Mariner’s Guide to Right Whale Protection” (contact the NMFS Southeast Region, Protected Resources Division for more information regarding the CD). 4. Injured, dead, or entangled right whales should be immediately reported to the U.S. Coast Guard via VHF Channel 16. Injured or Dead Protected Species Reporting Vessel crews should report sightings of any injured or dead protected species immediately, regardless of whether the injury or death is caused by your vessel. Report marine mammals to the Southeast U.S. Stranding Hotline: 877-433-8299 Report sea turtles to the NMFS Southeast Regional Office: 727-824-5312 If the injury or death of a marine mammal was caused by a collision with your vessel, responsible parties should remain available to assist the respective salvage and stranding network as needed. NMFS’ Southeast Regional Office should be immediately notified of the strike by email (takereport.nmfsser@noaa.gov) using the attached vessel strike reporting form. For additional information, please contact the Protected Resources Division at: NOAA Fisheries Service Southeast Regional Office th 263 13 Avenue South St. Petersburg, FL 33701 Tel: (727) 824-5312 Visit us on the web at http://sero.nmfs.noaa.gov NMFS Southeast Region Vessel Strike Avoidance Measures and Reporting for Mariners; revised February 2008. Packet Pg. 266  FLORIDA ARTIFICIAL REEF MATERIALS CARGO MANIFEST AND PRE-DEPLOYMENT NOTIFICATION (Issued pursuant to Ch. 379.249(6)(b), Florida Statutes) I, ______________________________________________ ______________________ ________________ Name of individual managing reef deployment (print) Signature Date whose address is __________________________________________________________, (____) _____ - _____ Street City State Zip Code Phone declare that I am staging and transporting the following artificial reef construction materials allowable pursuant to the U.S. Army Corps of Engineers Artificial Reef Permit referenced below and agree to comply with all permit conditions in the permit listed below and attached to this manifest. I understand this artificial reef site is open to public access and this authorization does not provide any rights or exclusive private use over those rights or uses to the general public. The address of the land based reef materials staging area is: ______________________________________ Transporting Vessel Registration Number: _____________________________________________________ Vessel Owner: _____________________________ Vessel Operator: ______________________________ The following items are to be deployed as reef material (attach additional sheets when more than four locations): MATERIAL TAG Descriptions of material ID NUMBER(S), GPS Coordinates if applicable (number of pieces, type, dimension, weight) degrees, minutes, decimal minutes (DD°MM.mmm’) Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ A copy of the below referenced permit(s) and all associated conditions is attached to this manifest and shall be carried on board the vessel during loading, storing, or transporting artificial reef material. -- OFFICIAL USE ONLY -- (TO BE COMPLETED BY PERMIT HOLDER, OR AUTHORIZED ARTIFICIAL REEF INSPECTOR) Permit Holder: ______________________________________________________________________________ Name of U.S. Department of the Army, Corps of Engineers (ACOE) Permit Holder ACOE permit number ________________________, permitted site name _______________________________ issued on _________________________________ and has an expiration date of ________________________. Local tracking number (if applicable): __________________________________________________________ _________________________________________________________ (Name of FWC authorized Artificial Reef Inspector, printed) _________________________________________________________ ________________ (Signature) Packet (Date) Pg. 267 Revised 4/23/07  EXPLANATION SHEET FOR THE ARTIFICIAL REEF MATERIALS CARGO MANIFEST FORM The attached artificial reef cargo manifest has been developed in compliance with subsection 379.249(6)(b), Florida Statutes, which states that: “It is unlawful for any person to: store, possess or transport on or across state waters any materials reasonably suited for artificial reef construction and stored in such a manner providing ready access for use and placement as an artificial reef, unless a valid cargo manifest issued by the commission or a commission-certified inspector is onboard the transporting vessel. The manifest will serve as authorization to use a valid permitted site or land-based staging area, which will validate that the type of artificial reef construction material being transported is permissible for use at the permitted site, and will describe and quantify the artificial reef material being transported. The manifest will also include the latitude and longitude coordinates of the proposed deployment location, the valid permit number, and the copy off the permit conditions for the permitted site. The manifest must be available for inspection by any authorized law enforcement officer or commission employee.” This requirement for a cargo manifest became part of the statutory revision of the artificial reef program statute Section 379.249 Florida Statutes (F.S.), modified during the 2000 State of Florida Legislature. The statutory language allows a “commission certified inspector” to complete and approve the artificial reef materials cargo manifest. Therefore, we are providing the attached cargo manifest form to all local coastal government artificial reef coordinators and eligible non-profit corporations who may physically construct artificial reefs with the approval of the permit holders. INSTRUCTIONS A separate cargo manifest form is to be completed for each load to be transported offshore (i.e., one manifest per voyage). The manifest is to list all, and only, the reef materials onboard. The top of the form is to be filled out by the reef builder with his/her contact information and the information about the proposed reef materials to be deployed written into the boxes. If several materials are identical but have different tag numbers, please write “SAME” in the box for the other materials. Also put “SAME” under additional coordinates if all materials are going to the same deployment site. The shaded portion of the form at the bottom is to be filled out by the materials inspector. The cargo manifest must be completed by an entity representing the holder of the applicable artificial reef permit to assure that all materials meet the requirements of the permit. Completion of the artificial reef materials cargo manifest is required for all construction activities. The requirement to complete this document is not intended to be an undue burden on entities wishing to legally construct artificial reefs within permitted sites, but is a tool to assist law enforcement personnel in preventing the illegal construction of artificial reefs without the knowledge of the permit holder or in areas outside of legally permitted sites. It is intended to allow law enforcement staff to determine whether or not a load of materials is legal under the permit conditions. Without a properly completed Cargo Manifest Form on board, reef builders will be returned to port pursuant to Chapter 379.249 (6) (b). It is not necessary to send a copy of the Cargo Manifest Form to the FWC artificial reef section in Tallahassee. Documentation of the reef building activity should be maintained by the entity issuing the manifest in the event of any FWC inquiries. Reminder: the placement of all public artificial reefs in state or adjacent federal waters requires the submittal of a Materials Placement Report to the FWC artificial reef program within 30 days of public reef deployment in accordance with s. 379.249 F.S. Packet Pg. 268  FLORIDA ARTIFICIAL REEF MATERIALS PLACEMENT REPORT AND POST-DEPLOYMENT NOTIFICATION To Be Completed For Each Deployment Location or Date of Deployment County or Municipality:_____________________________________ Date of Placement:_________________________ Grant No. FWC - ________________________________ U.S. Army Corps (if applicable) Permit No.: _______________________________ Total project cost: $___________ (Funding Source(s) and Amount(s): FWC $____________ Local $ __________ Other $________) Name of Permitted Location Name Reef Site: ________________________________ for This Deployment:________________________ ° Latitude:_____ ______.___ ___ ___’ North Longitude:______ °_______.___ ___ ___’ West Degrees minutes decimal minutes Degrees minutes decimal minutes GPS Brand:__________________ GPS Model number:___________ Geographical Location: ______________ at __________degrees from ___________________________________ (nautical miles) (bearing) (reference inlet) Water Depth:________ feet (minus) Max. Material Height: ________feet (equals) Actual Vertical Clearance: ______feet TYPE AND AMOUNT OF MATERIAL DEPLOYED AT THE LOCATION DESCRIBED ABOVE: (ATTACH A PHOTOGRAPH OF THE MATERIAL ON THE BARGE IMMEDIATELY PRIOR TO DEPLOYMENT) Primary Type of Material:____________________________________________ Number of Pieces:__________ Dimensions:________________________________________________________________________________ Secondary Type of Material:_________________________________________ Number of Pieces:__________ Dimensions:________________________________________________________________________________ How was tonnage calculated?(Check all that apply, attach additional sheets if necessary): Before & after barge draft calculation Known weight of individual pieces TOTAL TONNAGE FOR THIS DEPLOYMENT: _______________________ Trucking receipts I DO HEREBY CERTIFY THAT THE ABOVE INFORMATION IS TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE Observer’s Name: _________________________________ Title: _________________________________ (PLEASE PRINT) (PLEASE PRINT) Observer’s Signature: _______________________________ Date: __________________________________ Observer’s Remarks: __________________________________________________________________________ ___________________________________________________________________________________________ I DO HEREBY CERTIFY THAT THE ABOVE INFORMATION COMPLIES WITH THE ABOVE REFERENCED PERMIT CONDITIONS Permittee’s Staff Name: _________________________________ Title: __________________________________ (PLEASE PRINT) (PLEASE PRINT) Permittee’s Staff Signature: ______________________________ Date: _________________________________ Local Tracking number ______________ FWC Tracking number _______________ Entered by _________ on _________ Rev. 4/23/2007 FWC initials date Packet Pg. 269 Packet Pg. 270  SELF-CERTIFICATION STATEMENT OF COMPLIANCE Permit Number: SAJ-2011-03485 (SP-SWA) Permittee’s Name & Address (please print or type): __________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Telephone Number: ____________________________________________________________________ Location of the Work: __________________________________________________________________ _____________________________________________________________________________________ Date Work Started: __________________________ Date Work Completed: ______________________ Description of the Work (e.g. bank stabilization, residential or commercial filling, docks, dredging, etc.): _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Acreage or Square Feet of Impacts to Waters of the United States: _______________________________ Describe Mitigation completed (if applicable): ______________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Describe any Deviations from the Permit (attach drawing(s) depicting the deviations): _____________________________________________________________________________________ _____________________________________________________________________________________ I certify that all work, and mitigation (if applicable) was done in accordance with the limitations and conditions as described in the permit. Any deviations as described above are depicted on the attached drawing(s). ______________________________ Signature of Permittee ______________________________ Date Packet Pg. 271  DEPARTMENT OF THE ARMY JACKSONVILLE DISTRICT CORPS OF ENGINEERS PENSACOLA REGULATORY OFFICE 41 NORTH JEFFERSON STREET, SUITE 301 PENSACOLA, FLORIDA 32502 REPLY TO ATTENTION OF March 10, 2014 Regulatory Division North Permits Branch Pensacola Permits Section SAJ-2013-02668 (SP-SWA) Okaloosa County Board of County Commissioners 1804 Lewis Turner Boulevard, Suite 100 Ft. Walton Beach, Florida 32547 Gentlemen: The U.S. Army Corps of Engineers (Corps) has completed the review and evaluation of your Department of the Army permit application, number SAJ-2013-02668. Our regulations require that you have an opportunity to review the terms and conditions prior to final signature by the Department of the Army. Enclosed is an unsigned Department of the Army permit instrument (permit). Please read carefully the Special Conditions beginning on page 3 of the permit. These were developed to apply specifically to your project. Water Quality Certification is also required prior to issuance of a permit. The Corps has received a copy of the State of Florida certification for your project. In accordance with General Condition 5 of the permit, any special conditions of the Water Quality Certification have been attached to the Department of the Army permit. Instructions for Objecting to Permit Terms and Conditions: This letter contains an initial proffered permit for your proposed project. If you object to certain terms and conditions contained within the permit, you may request that the permit be modified. Enclosed you will find a Notification of Administrative Appeal Options and Process fact sheet and Request for Appeal (RFA) form. If you choose to object to certain terms and conditions of the permit, you must follow the directions provided in Section 1, Part A and submit the completed RFA form to the letterhead address. In order for an RFA to be accepted by the Corps, the Corps must determine that it is complete, that it meets the criteria under 33 CFR Part 331.5, and that it has been received by the District office within 60 days of the date of the RFA. Should you decide to submit an RFA form, it must be received at the letterhead address by May 9, 2014. Instructions for Accepting Terms and Conditions and Finalizing Your Permit: It is not necessary to submit an RFA form to the District office, if you do not object to the decision in this letter. In this case, the permit must be signed by the applicant in the space provided on the signature page of the permit. In the case of corporations, Packet Pg. 272  -2- acceptance must be by an officer of that corporation authorized to sign on behalf of the corporation. The party responsible for assuring the work is done in accordance with the permit terms and conditions must sign the permit. Please type or print the name and title of the person signing below the signature and the date signed. SIGN (PAGE 9) AND RETURN THE ENTIRE PERMIT, INCLUDING ALL ATTACHMENTS, TO THE LETTERHEAD ADDRESS The permit will be signed by the District Engineer or his representative. The Corps will add the permit expiration date to the permit and return the permit to you. It is important to note that the permit is not valid until the District Engineer or his representative signs it. Please note U.S. Coast Guard regulations may require you as permittee to provide information for a Notice to the maritime community regarding your project. You should contact the Coast Guard Sector Mobile Waterways Management Branch (spw), 1500 15th Street, Mobile, AL 36615 or by phone at 251-441-5684 to determine if a Notice is necessary. Also any safety lights, signs and signals prescribed by the U.S. Coast Guard through their regulations or otherwise, must be installed and maintained at your expense as permittee on authorized facilities in navigable waters of the United States. To receive a U.S. Coast Guard Private Aids to Navigation marking determination, you are advised to contact the Eighth Coast Guard District (dpw), 500 Poydras St. Suite 1230, New Orleans, LA 70130, 504-671-2328 or via email to: D8oanPATON@uscg.mil prior to installation/construction of any fixed structures. For general information related to Private Aids to Navigation please visit the Eighth CG District web site at: http://www.uscg.mil/d8/waterways/PATON.Home.asp. Thank you for your cooperation with our permit program. The Corps’ Jacksonville District Regulatory Division is committed to improving service to our customers. We strive to perform our duty in a friendly and timely manner while working to preserve our environment. We invite you to complete our automated Customer Service Survey at http://corpsmapu.usace.army.mil/cm_apex/f?p=regulatory_survey. Please be aware this Internet address is case sensitive; and, you will need to enter it exactly as it appears above. Your input is appreciated – favorable or otherwise. If you have any questions concerning this application, you may contact Steve Andrews Jr. in writing at the letterhead address, by electronic mail at Packet Pg. 273 Packet Pg. 274 NOTIFICATION OF ADMINISTRATIVE APPEAL OPTIONS AND PROCESS AND REQUEST FOR APPEAL Applicant: Okaloosa County BOCC File Number: SAJ-2013-02668 Date: 10 March 2014 Attached is: See Section below X INITIAL PROFFERED PERMIT (Standard Permit or Letter of permission) A PROFFERED PERMIT (Standard Permit or Letter of permission) B PERMIT DENIAL C APPROVED JURISDICTIONAL DETERMINATION D PRELIMINARY JURISDICTIONAL DETERMINATION E SECTION I - The following identifies your rights and options regarding an administrative appeal of the above decision. Additional information may be found at http://www.usace.army.mil/CECW/Pages/reg_materials.aspx or Corps regulations at 33 CFR Part 331. A: INITIAL PROFFERED PERMIT: You may accept or object to the permit. • ACCEPT: If you received a Standard Permit, you may sign the permit document and return it to the district engineer for final authorization. If you received a Letter of Permission (LOP), you may accept the LOP and your work is authorized. Your signature on the Standard Permit or acceptance of the LOP means that you accept the permit in its entirety, and waive all rights to appeal the permit, including its terms and conditions, and approved jurisdictional determinations associated with the permit. • OBJECT: If you object to the permit (Standard or LOP) because of certain terms and conditions therein, you may request that the permit be modified accordingly. You must complete Section II of this form and return the form to the district engineer. Your objections must be received by the district engineer within 60 days of the date of this notice, or you will forfeit your right to appeal the permit in the future. Upon receipt of your letter, the district engineer will evaluate your objections and may: (a) modify the permit to address all of your concerns, (b) modify the permit to address some of your objections, or (c) not modify the permit having determined that the permit should be issued as previously written. After evaluating your objections, the district engineer will send you a proffered permit for your reconsideration, as indicated in Section B below. B: PROFFERED PERMIT: You may accept or appeal the permit • ACCEPT: If you received a Standard Permit, you may sign the permit document and return it to the district engineer for final authorization. If you received a Letter of Permission (LOP), you may accept the LOP and your work is authorized. Your signature on the Standard Permit or acceptance of the LOP means that you accept the permit in its entirety, and waive all rights to appeal the permit, including its terms and conditions, and approved jurisdictional determinations associated with the permit. • APPEAL: If you choose to decline the proffered permit (Standard or LOP) because of certain terms and conditions therein, you may appeal the declined permit under the Corps of Engineers Administrative Appeal Process by completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of this notice. C: PERMIT DENIAL: You may appeal the denial of a permit under the Corps of Engineers Administrative Appeal Process by completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of this notice. D: APPROVED JURISDICTIONAL DETERMINATION: You may accept or appeal the approved JD or provide new information. • ACCEPT: You do not need to notify the Corps to accept an approved JD. Failure to notify the Corps within 60 days of the date of this notice, means that you accept the approved JD in its entirety, and waive all rights to appeal the approved JD. • APPEAL: If you disagree with the approved JD, you may appeal the approved JD under the Corps of Engineers Administrative Appeal Process by completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of this notice. Packet Pg. 275 SECTION II - REQUEST FOR APPEAL or OBJECTIONS TO AN INITIAL PROFFERED PERMIT REASONS FOR APPEAL OR OBJECTIONS: (Describe your reasons for appealing the decision or your objections to an initial proffered permit in clear concise statements. You may attach additional information to this form to clarify where your reasons or objections are addressed in the administrative record.) ADDITIONAL INFORMATION: The appeal is limited to a review of the administrative record, the Corps memorandum for the record of the appeal conference or meeting, and any supplemental information that the review officer has determined is needed to clarify the administrative record. Neither the appellant nor the Corps may add new information or analyses to the record. However, you may provide additional information to clarify the location of information that is already in the administrative record. POINT OF CONTACT FOR QUESTIONS OR INFORMATION: If you have questions regarding this decision and/or the If you only have questions regarding the appeal process appeal process you may contact: you may also contact: for process: Project Manager as noted in letter Stuart Santos 904-232-2018 RIGHT OF ENTRY: Your signature below grants the right of entry to Corps of Engineers personnel, and any government consultants, to conduct investigations of the project site during the course of the appeal process. You will be provided a 15 day notice of any site investigation, and will have the opportunity to participate in all site investigations. Date: Telephone number: _______________________________ Signature of appellant or agent. Packet Pg. 276  DEPARTMENT OF THE ARMY PERMIT Permittee: Okaloosa County Board of County Commissioners 1804 Lewis Turner Boulevard, Suite 100 Ft. Walton Beach, Florida 32547 Permit No: SAJ-2013-02668 (SP-SWA) Issuing Office: U.S. Army Engineer District, Jacksonville NOTE: The term "you" and its derivatives, as used in this permit, means the permittee or any future transferee. The term "this office" refers to the appropriate district or division office of the Corps of Engineers having jurisdiction over the permitted activity or the appropriate official of that office acting under the authority of the commanding officer. You are authorized to perform work in accordance with the terms and conditions specified below. Project Description: The applicant proposes to establish an artificial reef area, which would be referred to as the “Fish Haven #14”. It would consist of a ¼ by ¼ mile deployment area, totaling 40 acres, which would provide enhanced habitat and recreational fishing and diving opportunities upon implementation of the project. Additionally, there would be a deployment buffer of 50 feet on each side. Material to be deployed would consist of clean concrete or rock and prefabricated structures that are a mixture of clean concrete and heavy gauge steel. The material to be deployed would have a maximum profile height of no more than 30 feet and would result in a minimum authorized depth of -38 feet at mean lower low water MLLW. The applicant would implement a monitoring plan. The work described above is to be completed in accordance with the three (3) pages of drawings affixed at the end of this permit instrument. Project Location: The project site is located in the Gulf of Mexico, 5.66 nautical miles southwest of Destin pass, 2.71 nautical miles north of the East-West Safety Fairway and 2.59 nautical miles south of Okaloosa Island off of Okaloosa County, Florida. Latitude & Longitude: NE Site Corner: Latitude: 30.354166° North Longitude: 86.612483° West NW Site Corner: Latitude: 30.354166° North Longitude: 86.616666° West SE Site Corner: Latitude: 30.350533° North Packet Pg. 277 PERMIT NUMBER: SAJ-2013-02668 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 2 of 11 Longitude: 86.612483° West SW Site Corner: Latitude: 30.350533° North Longitude: 86.616666° West Permit Conditions General Conditions: 1. The time limit for completing the work authorized ends on March 10, 2024. If you find that you need more time to complete the authorized activity, submit your request for a time extension to this office for consideration at least one month before the above date is reached. 2. You must maintain the activity authorized by this permit in good condition and in conformance with the terms and conditions of this permit. You are not relieved of this requirement if you abandon the permitted activity, although you may make a good faith transfer to a third party in compliance with General Condition 4 below. Should you wish to cease to maintain the authorized activity or should you desire to abandon it without a good faith transfer, you must obtain a modification of this permit from this office, which may require restoration of the area. 3. If you discover any previously unknown historic or archeological remains while accomplishing the activity authorized by this permit, you must immediately notify this office of what you have found. We will initiate the Federal and State coordination required to determine if the remains warrant a recovery effort or if the site is eligible for listing in the National Register of Historic Places. 4. If you sell the property associated with this permit, you must obtain the signature and the mailing address of the new owner in the space provided and forward a copy of the permit to this office to validate the transfer of this authorization. 5. If a conditioned water quality certification has been issued for your project, you must comply with the conditions specified in the certification as special conditions to this permit. For your convenience, a copy of the certification is attached if it contains such conditions. 6. You must allow representatives from this office to inspect the authorized activity at any time deemed necessary to ensure that it is being or has been accomplished in accordance with the terms and conditions of your permit. Packet Pg. 278 PERMIT NUMBER: SAJ-2013-02668 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 3 of 11 Special Conditions: 1. Reporting Addresses: The Permittee shall reference this permit number, SAJ- 2013-02668 (SP-SWA), on all correspondence. Unless specifically notified to the contrary, the Permittee shall use the following addresses for transmitting correspondence to the referenced agencies: (a) U.S. Army Corps of Engineers, Regulatory Division, Enforcement Section 41 North Jefferson Street, Suite 301 Pensacola, Florida 32502 The Permittee shall reference this permit number, SAJ-2010-03163 (SP-SWA), on all submittals. Or email at: CESAJ-ComplyDocs@usace.army.mil (b) National Oceanic and Atmospheric Administration (NOAA), Marine Chart Division, Office of Coast Survey, N/CS26, Sta. 7317 1315 East-West Highway Silver Springs, MD, 20910-3282 Or email at: ocs.ndb@noaa.gov. (c) Commander, U.S. Coast Guard (USCG) 8th Coast Guard District Hale Boggs Federal Building 500 Poydras Street New Orleans, LA 70130 (d) Florida Fish and Wildlife Conservation Commission (FWC), Artificial Reef Program, 620 S. Meridian Street, Box 4B2 Tallahassee, FL 32399. Or email at: artificialreefdeployments@MyFWC.com 2. Initial Agency Notification: The Permittee shall provide to the Corps, NOAA and USCG written notification of the planned deployment start date at least two weeks prior to the initial deployment on the authorized artificial reef site. 3. Protection of Existing Resources: The Permittee shall not deploy artificial reef materials until an assessment of the bottom conditions have been accomplished by diver, submersible video camera, fathometer, depth/bottom sounder (e.g. “fish finder”), or side-scan sonar. The inspection of the deployment area may occur at the time of deployment, but no more than one year prior to deployment. The Permittee shall Packet Pg. 279 PERMIT NUMBER: SAJ-2013-02668 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 4 of 11 maintain a deployment buffer of at least 200 feet from any submerged beds of sea grasses, coral reefs, live bottom, areas supporting growth of sponges, sea fans, soft corals, and other sessile macroinvertebrates generally associated with rock outcrops, oyster reefs, scallop beds, clam beds, or areas where there are unique or unusual concentrations of bottom-dwelling marine organisms. If, during the inspection, evidence is observed of cultural/archaeological resources, such as sunken vessels, ballast, historic refuse piles, or careenage areas the Corps will be notified by the Permittee and the above referenced deployment buffer will be implemented. The Permittee shall maintain a record of the information gained during the inspection such that it can be provided upon request to the Corps. 4. Pre-Deployment Notification: No less than 14 days prior to deployment of material on an artificial reef, the Permittee shall transmit by electronic mail (“email”) a complete and signed “Florida Artificial Reef Materials Cargo Manifest and Pre-Deployment Notification” form, attached to this permit, to the Corps and FWC to allow inspection of the proposed reef materials as deemed necessary by the agencies. Inspection is allowable at the staging area. By signing the Pre-Deployment Notification the Permittee certifies that all materials are free from asphalt, petroleum, other hydrocarbons and toxic residues. The Permittee shall not deploy material if notified by the Corps or FWC that the material is questionable. The material needs to be evaluated before it is released for deployment. Any material that is deemed unacceptable for reef material will be disposed in an approved upland disposal site. Deployment of the material shall not occur until after the end of the 14-day inspection period. The Permittee shall ensure both a copy of the Corps permit and the signed “Florida Artificial Reef Materials Cargo Manifest and Pre-Deployment Notification Form” are maintained aboard the deployment vessel at all times during loading, transit, and deployment. 5. Post-Deployment Placement Report/As-Built Drawing: No less than 30 days after deployment at the reef site, the Permittee shall transmit by email to the Corps, FWC, and NOAA a complete and signed “Florida Artificial Reef Materials Placement Report and Post-Deployment Notification” form attached to this permit. Please note, the Corps requires the latitude and longitude to be accurate within 5 meters horizontal distance on the post-deployment report. Attach to the report, an as-built drawing that contains the approximate deployment configurations and the height of the material after placement. Depth shall be verified utilizing fathometer, depth sounder, or similar device accurate to within 1 meter. Also, include information on the condition of the material at the time of deployment. The report and drawing shall be limited to a few pages per deployment. Representative photographs and/or video, if available, are encouraged to be submitted. Packet Pg. 280 PERMIT NUMBER: SAJ-2013-02668 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 5 of 11 6. Ownership/Maintenance/Liability: By signing this permit, the Permittee certifies and acknowledges ownership of all artificial reef materials deployed on the reef, accepts responsibility for maintenance of the artificial reef, and possesses the ability to assume liability for all damages that may arise with respect to the artificial reef. 7. Assurance of Navigation and Maintenance: The Permittee understands and agrees that, if future operations by the United States require the removal, relocation, or other alteration, of the structures or work herein authorized, or if in the opinion of the Secretary of the Army or his authorized representative, said structure or work shall cause unreasonable obstruction to the free navigation of the navigable waters, the Permittee will be required, upon due notice from the Corps of Engineers, to remove, relocate, or alter the structural work or obstructions caused thereby, without expense to the United States. No claim shall be made against the United States on account of any such removal or alteration. 8. Sea Turtle, Smalltooth Sawfish and Sturgeon Conditions: The Permittee shall comply with the attached National Marine Fisheries Service’s “Sea Turtle and Smalltooth Sawfish Construction Conditions”, which also applies to sturgeon. 9. Manatee Conditions: The Permittee shall comply with the attached “Standard Manatee Conditions for In-Water Work – 2011.” 10. Protected Species Guidance: The Permittee shall comply with the attached “Vessel Strike Avoidance Measures and Injured or Dead Protected Species Reporting” guidance for marine turtles and marine mammals. 11. Self-Certification: Within 60 days of completion of the authorized work or at the expiration of the construction authorization of this permit, whichever occurs first, the Permittee shall complete the attached “Self-Certification Statement of Compliance” form and submit to the Corps. In the event that the completed work deviates, in any manner, from the authorized work, the Permittee shall describe, on the Self-Certification Form, the deviations between the work authorized by the permit and the work as constructed. Please note that the description of any deviations on the Self-Certification Form does not constitute approval of any deviations by the Corps. 12. Cultural Resources/Historic Properties: a. No structure or work shall adversely affect impact or disturb properties listed in the National Register of Historic Places (NRHP) or those eligible for inclusion in the NRHP. b. If during the ground disturbing activities and construction work within the permit area, there are archaeological/cultural materials encountered which were not the Packet Pg. 281 PERMIT NUMBER: SAJ-2013-02668 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 6 of 11 subject of a previous cultural resources assessment survey (and which shall include, but not be limited to: pottery, modified shell, flora, fauna, human remains, ceramics, stone tools or metal implements, dugout canoes, evidence of structures or any other physical remains that could be associated with Native American cultures or early colonial or American settlement), the Permittee shall immediately stop all work in the vicinity and notify the Corps. The Corps shall then notify the Florida State Historic Preservation Officer (SHPO) and the appropriate Tribal Historic Preservation Officer(s) (THPO(s)) to assess the significance of the discovery and devise appropriate actions. c. A cultural resources assessment may be required of the permit area, if deemed necessary by the SHPO, THPO(s), or Corps, in accordance with 36 CFR 800 or 33 CFR 325, Appendix C (5). Based, on the circumstances of the discovery, equity to all parties, and considerations of the public interest, the Corps may modify, suspend or revoke the permit in accordance with 33 CFR Part 325.7. Such activity shall not resume on non- federal lands without written authorization from the SHPO and the Corps. d. In the unlikely event that unmarked human remains are identified on non-federal lands, they will be treated in accordance with Section 872.05 Florida Statutes. All work in the vicinity shall immediately cease and the Permittee shall immediately notify the medical examiner, Corps, and State Archeologist. The Corps shall then notify the appropriate SHPO and THPO(s). Based, on the circumstances of the discovery, equity to all parties, and considerations of the public interest, the Corps may modify, suspend or revoke the permit in accordance with 33 CFR Part 325.7. Such activity shall not resume without written authorization from the State Archeologist, SHPO and the Corps. e. In the unlikely event that human remains are encountered on federal or tribal lands, or in situations where Archaeological Resources Protection Act of 1979, or Native American Graves Protection Repatriation Act of 1990 applies, all work in the vicinity shall immediately cease and the Permittee immediately notify the Corps. The Corps shall then notify the appropriate THPO(s) and SHPO. Based, on the circumstances of the discovery, equity to all parties, and considerations of the public interest, the Corps may modify, suspend or revoke the permit in accordance with 33 CFR Part 325.7. After such notification, project activities on federal lands shall not resume without written authorization from the Corps, and/or appropriate THPO(s), SHPO, and federal manager. After such notification, project activities on tribal lands shall not resume without written authorization from the appropriate THPO(s) and the Corps. Further Information: 1. Congressional Authorities: You have been authorized to undertake the activity described above pursuant to: Packet Pg. 282 PERMIT NUMBER: SAJ-2013-02668 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 7 of 11 (X) Section 10 of the Rivers and Harbors Act of 1899 (33 U.S.C. 403). (X) Section 404 of the Clean Water Act (33 U.S.C. 1344). ( ) Section 103 of the Marine Protection, Research and Sanctuaries Act of 1972 (33 U.S.C. 1413). 2. Limits of this authorization. a. This permit does not obviate the need to obtain other Federal, State, or local authorizations required by law. b. This permit does not grant any property rights or exclusive privileges. c. This permit does not authorize any injury to the property or rights of others. d. This permit does not authorize interference with any existing or proposed Federal projects. 3. Limits of Federal Liability. In issuing this permit, the Federal Government does not assume any liability for the following: a. Damages to the permitted project or uses thereof as a result of other permitted or unpermitted activities or from natural causes. b. Damages to the permitted project or uses thereof as a result of current or future activities undertaken by or on behalf of the United States in the public interest. c. Damages to persons, property, or to other permitted or unpermitted activities or structures caused by the activity authorized by this permit. d. Design or construction deficiencies associated with the permitted work. e. Damage claims associated with any future modification, suspension, or revocation of this permit. 4. Reliance on Applicant's Data: The determination of this office that issuance of this permit is not contrary to the public interest was made in reliance on the information you provided. Packet Pg. 283 PERMIT NUMBER: SAJ-2013-02668 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 8 of 11 5. Reevaluation of Permit Decision: This office may reevaluate its decision on this permit at any time the circumstances warrant. Circumstances that could require a reevaluation include, but are not limited to, the following: a. You fail to comply with the terms and conditions of this permit. b. The information provided by you in support of your permit application proves to have been false, incomplete, or inaccurate (see 4 above). c. Significant new information surfaces which this office did not consider in reaching the original public interest decision. Such a reevaluation may result in a determination that it is appropriate to use the suspension, modification, and revocation procedures contained in 33 CFR 325.7 or enforcement procedures such as those contained in 33 CFR 326.4 and 326.5. The referenced enforcement procedures provide for the issuance of an administrative order requiring you comply with the terms and conditions of your permit and for the initiation of legal action where appropriate. You will be required to pay for any corrective measures ordered by this office, and if you fail to comply with such directive, this office may in certain situations (such as those specified in 33 CFR 209.170) accomplish the corrective measures by contract or otherwise and bill you for the cost. 6. Extensions: General Condition 1 establishes a time limit for the completion of the activity authorized by this permit. Unless there are circumstances requiring either a prompt completion of the authorized activity or a reevaluation of the public interest decision, the Corps will normally give favorable consideration to a request for an extension of this time limit. Packet Pg. 284 PERMIT NUMBER: SAJ-2013-02668 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 9 of 11 Your signature below, as permittee, indicates that you accept and agree to comply with the terms and conditions of this permit. _______________________________________ ____________________ (PERMITTEE) (DATE) _______________________________________ (PERMITTEE NAME-PRINTED) This permit becomes effective when the Federal official, designated to act for the Secretary of the Army, has signed below. _______________________________________ ____________________ (DISTRICT ENGINEER) (DATE) Alan M. Dodd, Colonel, U.S. Army District Commander Packet Pg. 285 PERMIT NUMBER: SAJ-2013-02668 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 10 of 11 When the structures or work authorized by this permit are still in existence at the time the property is transferred, the terms and conditions of this permit will continue to be binding on the new owner(s) of the property. To validate the transfer of this permit and the associated liabilities associated with compliance with its terms and conditions, have the transferee sign and date below. _______________________________________ ____________________ (TRANSFEREE-SIGNATURE) (DATE) _______________________________________ (NAME-PRINTED) _______________________________________ (ADDRESS) ______________________________________________________ (CITY, STATE, AND ZIP CODE) Packet Pg. 286 PERMIT NUMBER: SAJ-2013-02668 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 11 of 11 Attachments to Department of the Army Permit Number SAJ-2013-02668 1. PERMIT DRAWINGS: Three (3) pages, dated 25 February 2014. 2. WATER QUALITY CERTIFICATION: Specific Conditions of the water quality permit/certification in accordance with General Condition number 5 on page 3 of this DA permit. Eight (8) pages. 3. SEA TURTLE, SAWFISH AND STURGEON CONDITIONS: One (1) page. 4. MANATEE CONDITIONS: One (1) page. 5. VESSEL STRIKE AVOIDANCE MEASURES: Two (2) pages. 6. FLORIDA ARTIFICIAL REEF MATERIALS CARGO MANIFEST AND PRE- DEPLOYMENT NOTIFICATION FORM: 7. FLORIDA ARTIFICIAL REEF MATERIALS PLACEMENT REPORT AND POST- DEPLOYMENT NOTIFICATION FORM: 8. SELF-CERTIFICATION FORM: One (1) page. Packet Pg. 287 Packet Pg. 288 Packet Pg. 289 Packet Pg. 290  UNITED STATES DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration NATIONAL MARINE FISHERIES SERVICE Southeast Regional Office 263 13th Avenue South St. Petersburg, FL 33701 SEA TURTLE AND SMALLTOOTH SAWFISH CONSTRUCTION CONDITIONS The permittee shall comply with the following protected species construction conditions: a. The permittee shall instruct all personnel associated with the project of the potential presence of these species and the need to avoid collisions with sea turtles and smalltooth sawfish. All construction personnel are responsible for observing water-related activities for the presence of these species. b. The permittee shall advise all construction personnel that there are civil and criminal penalties for harming, harassing, or killing sea turtles or smalltooth sawfish, which are protected under the Endangered Species Act of 1973. c. Siltation barriers shall be made of material in which a sea turtle or smalltooth sawfish cannot become entangled, be properly secured, and be regularly monitored to avoid protected species entrapment. Barriers may not block sea turtle or smalltooth sawfish entry to or exit from designated critical habitat without prior agreement from the National Marine Fisheries Service’s Protected Resources Division, St. Petersburg, Florida. d. All vessels associated with the construction project shall operate at “no wake/idle” speeds at all times while in the construction area and while in water depths where the draft of the vessel provides less than a four-foot clearance from the bottom. All vessels will preferentially follow deep-water routes (e.g., marked channels) whenever possible. e. If a sea turtle or smalltooth sawfish is seen within 100 yards of the active daily construction/dredging operation or vessel movement, all appropriate precautions shall be implemented to ensure its protection. These precautions shall include cessation of operation of any moving equipment closer than 50 feet of a sea turtle or smalltooth sawfish. Operation of any mechanical construction equipment shall cease immediately if a sea turtle or smalltooth sawfish is seen within a 50-ft radius of the equipment. Activities may not resume until the protected species has departed the project area of its own volition. f. Any collision with and/or injury to a sea turtle or smalltooth sawfish shall be reported immediately to the National Marine Fisheries Service’s Protected Resources Division (727-824- 5312) and the local authorized sea turtle stranding/rescue organization. g. Any special construction conditions, required of your specific project, outside these general conditions, if applicable, will be addressed in the primary consultation. Revised: March 23, 2006 O:\forms\Sea Turtle and Smalltooth Sawfish Construction Conditions.doc Packet Pg. 291  STANDARD MANATEE CONDITIONS FOR IN-WATER WORK 2011 The permittee shall comply with the following conditions intended to protect manatees from direct project effects: a. All personnel associated with the project shall be instructed about the presence of manatees and manatee speed zones, and the need to avoid collisions with and injury to manatees. The permittee shall advise all construction personnel that there are civil and criminal penalties for harming, harassing, or killing manatees which are protected under the Marine Mammal Protection Act, the Endangered Species Act, and the Florida Manatee Sanctuary Act. b. All vessels associated with the construction project shall operate at "Idle Speed/No Wake” at all times while in the immediate area and while in water where the draft of the vessel provides less than a four-foot clearance from the bottom. All vessels will follow routes of deep water whenever possible. c. Siltation or turbidity barriers shall be made of material in which manatees cannot become entangled, shall be properly secured, and shall be regularly monitored to avoid manatee entanglement or entrapment. Barriers must not impede manatee movement. d. All on-site project personnel are responsible for observing water-related activities for the presence of manatee(s). All in-water operations, including vessels, must be shutdown if a manatee(s) comes within 50 feet of the operation. Activities will not resume until the manatee(s) has moved beyond the 50-foot radius of the project operation, or until 30 minutes elapses if the manatee(s) has not reappeared within 50 feet of the operation. Animals must not be herded away or harassed into leaving. e. Any collision with or injury to a manatee shall be reported immediately to the Florida Fish and Wildlife Conservation Commission (FWC) Hotline at 1-888-404-3922. Collision and/or injury should also be reported to the U.S. Fish and Wildlife Service in Jacksonville (1-904- 731-3336) for north Florida or Vero Beach (1-772-562-3909) for south Florida, and to FWC at ImperiledSpecies@myFWC.com Packet Pg. 292  Vessel Strike Avoidance Measures and Reporting for Mariners NOAA Fisheries Service, Southeast Region Background The National Marine Fisheries Service (NMFS) has determined that collisions with vessels can injure or kill protected species (e.g., endangered and threatened species, and marine mammals). The following standard measures should be implemented to reduce the risk associated with vessel strikes or disturbance of these protected species to discountable levels. NMFS should be contacted to identify any additional conservation and recovery issues of concern, and to assist in the development of measures that may be necessary. Protected Species Identification Training Vessel crews should use an Atlantic and Gulf of Mexico reference guide that helps identify protected species that might be encountered in U.S. waters of the Atlantic Ocean, including the Caribbean Sea, and Gulf of Mexico. Additional training should be provided regarding information and resources available regarding federal laws and regulations for protected species, ship strike information, critical habitat, migratory routes and seasonal abundance, and recent sightings of protected species. Vessel Strike Avoidance In order to avoid causing injury or death to marine mammals and sea turtles the following measures should be taken when consistent with safe navigation: 1. Vessel operators and crews should maintain a vigilant watch for marine mammals and sea turtles to avoid striking sighted protected species. 2. When whales are sighted, maintain a distance of 100 yards or greater between the whale and the vessel. 3. When sea turtles or small cetaceans are sighted, attempt to maintain a distance of 50 yards or greater between the animal and the vessel whenever possible. 4. When small cetaceans are sighted while a vessel is underway (e.g., bow-riding), attempt to remain parallel to the animal’s course. Avoid excessive speed or abrupt changes in direction until the cetacean has left the area. 5. Reduce vessel speed to 10 knots or less when mother/calf pairs, groups, or large assemblages of cetaceans are observed near an underway vessel, when safety permits. A single cetacean at the surface may indicate the presence of submerged animals in the vicinity; therefore, prudent precautionary measures should always be exercised. The vessel should attempt to route around the animals, maintaining a minimum distance of 100 yards whenever possible. NMFS Southeast Region Vessel Strike Avoidance Measures and Reporting for Mariners; revised February 2008. Packet Pg. 293  6. Whales may surface in unpredictable locations or approach slowly moving vessels. When an animal is sighted in the vessel’s path or in close proximity to a moving vessel and when safety permits, reduce speed and shift the engine to neutral. Do not engage the engines until the animals are clear of the area. Additional Requirements for the North Atlantic Right Whale 1. If a sighted whale is believed to be a North Atlantic right whale, federal regulation requires a minimum distance of 500 yards be maintained from the animal (50 CFR 224.103 (c)). 2. Vessels entering North Atlantic right whale critical habitat are required to report into the Mandatory Ship Reporting System. 3. Mariners should check with various communication media for general information regarding avoiding ship strikes and specific information regarding North Atlantic right whale sighting locations. These include NOAA weather radio, U.S. Coast Guard NAVTEX broadcasts, and Notices to Mariners. Commercial mariners calling on United States ports should view the most recent version of the NOAA/USCG produced training CD entitled “A Prudent Mariner’s Guide to Right Whale Protection” (contact the NMFS Southeast Region, Protected Resources Division for more information regarding the CD). 4. Injured, dead, or entangled right whales should be immediately reported to the U.S. Coast Guard via VHF Channel 16. Injured or Dead Protected Species Reporting Vessel crews should report sightings of any injured or dead protected species immediately, regardless of whether the injury or death is caused by your vessel. Report marine mammals to the Southeast U.S. Stranding Hotline: 877-433-8299 Report sea turtles to the NMFS Southeast Regional Office: 727-824-5312 If the injury or death of a marine mammal was caused by a collision with your vessel, responsible parties should remain available to assist the respective salvage and stranding network as needed. NMFS’ Southeast Regional Office should be immediately notified of the strike by email (takereport.nmfsser@noaa.gov) using the attached vessel strike reporting form. For additional information, please contact the Protected Resources Division at: NOAA Fisheries Service Southeast Regional Office th 263 13 Avenue South St. Petersburg, FL 33701 Tel: (727) 824-5312 Visit us on the web at http://sero.nmfs.noaa.gov NMFS Southeast Region Vessel Strike Avoidance Measures and Reporting for Mariners; revised February 2008. Packet Pg. 294  FLORIDA ARTIFICIAL REEF MATERIALS CARGO MANIFEST AND PRE-DEPLOYMENT NOTIFICATION (Issued pursuant to Ch. 379.249(6)(b), Florida Statutes) I, ______________________________________________ ______________________ ________________ Name of individual managing reef deployment (print) Signature Date whose address is __________________________________________________________, (____) _____ - _____ Street City State Zip Code Phone declare that I am staging and transporting the following artificial reef construction materials allowable pursuant to the U.S. Army Corps of Engineers Artificial Reef Permit referenced below and agree to comply with all permit conditions in the permit listed below and attached to this manifest. I understand this artificial reef site is open to public access and this authorization does not provide any rights or exclusive private use over those rights or uses to the general public. The address of the land based reef materials staging area is: ______________________________________ Transporting Vessel Registration Number: _____________________________________________________ Vessel Owner: _____________________________ Vessel Operator: ______________________________ The following items are to be deployed as reef material (attach additional sheets when more than four locations): MATERIAL TAG Descriptions of material ID NUMBER(S), GPS Coordinates if applicable (number of pieces, type, dimension, weight) degrees, minutes, decimal minutes (DD°MM.mmm’) Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ A copy of the below referenced permit(s) and all associated conditions is attached to this manifest and shall be carried on board the vessel during loading, storing, or transporting artificial reef material. -- OFFICIAL USE ONLY -- (TO BE COMPLETED BY PERMIT HOLDER, OR AUTHORIZED ARTIFICIAL REEF INSPECTOR) Permit Holder: ______________________________________________________________________________ Name of U.S. Department of the Army, Corps of Engineers (ACOE) Permit Holder ACOE permit number ________________________, permitted site name _______________________________ issued on _________________________________ and has an expiration date of ________________________. Local tracking number (if applicable): __________________________________________________________ _________________________________________________________ (Name of FWC authorized Artificial Reef Inspector, printed) _________________________________________________________ ________________ (Signature) Packet (Date) Pg. 295 Revised 4/23/07  EXPLANATION SHEET FOR THE ARTIFICIAL REEF MATERIALS CARGO MANIFEST FORM The attached artificial reef cargo manifest has been developed in compliance with subsection 379.249(6)(b), Florida Statutes, which states that: “It is unlawful for any person to: store, possess or transport on or across state waters any materials reasonably suited for artificial reef construction and stored in such a manner providing ready access for use and placement as an artificial reef, unless a valid cargo manifest issued by the commission or a commission-certified inspector is onboard the transporting vessel. The manifest will serve as authorization to use a valid permitted site or land-based staging area, which will validate that the type of artificial reef construction material being transported is permissible for use at the permitted site, and will describe and quantify the artificial reef material being transported. The manifest will also include the latitude and longitude coordinates of the proposed deployment location, the valid permit number, and the copy off the permit conditions for the permitted site. The manifest must be available for inspection by any authorized law enforcement officer or commission employee.” This requirement for a cargo manifest became part of the statutory revision of the artificial reef program statute Section 379.249 Florida Statutes (F.S.), modified during the 2000 State of Florida Legislature. The statutory language allows a “commission certified inspector” to complete and approve the artificial reef materials cargo manifest. Therefore, we are providing the attached cargo manifest form to all local coastal government artificial reef coordinators and eligible non-profit corporations who may physically construct artificial reefs with the approval of the permit holders. INSTRUCTIONS A separate cargo manifest form is to be completed for each load to be transported offshore (i.e., one manifest per voyage). The manifest is to list all, and only, the reef materials onboard. The top of the form is to be filled out by the reef builder with his/her contact information and the information about the proposed reef materials to be deployed written into the boxes. If several materials are identical but have different tag numbers, please write “SAME” in the box for the other materials. Also put “SAME” under additional coordinates if all materials are going to the same deployment site. The shaded portion of the form at the bottom is to be filled out by the materials inspector. The cargo manifest must be completed by an entity representing the holder of the applicable artificial reef permit to assure that all materials meet the requirements of the permit. Completion of the artificial reef materials cargo manifest is required for all construction activities. The requirement to complete this document is not intended to be an undue burden on entities wishing to legally construct artificial reefs within permitted sites, but is a tool to assist law enforcement personnel in preventing the illegal construction of artificial reefs without the knowledge of the permit holder or in areas outside of legally permitted sites. It is intended to allow law enforcement staff to determine whether or not a load of materials is legal under the permit conditions. Without a properly completed Cargo Manifest Form on board, reef builders will be returned to port pursuant to Chapter 379.249 (6) (b). It is not necessary to send a copy of the Cargo Manifest Form to the FWC artificial reef section in Tallahassee. Documentation of the reef building activity should be maintained by the entity issuing the manifest in the event of any FWC inquiries. Reminder: the placement of all public artificial reefs in state or adjacent federal waters requires the submittal of a Materials Placement Report to the FWC artificial reef program within 30 days of public reef deployment in accordance with s. 379.249 F.S. Packet Pg. 296  FLORIDA ARTIFICIAL REEF MATERIALS PLACEMENT REPORT AND POST-DEPLOYMENT NOTIFICATION To Be Completed For Each Deployment Location or Date of Deployment County or Municipality:_____________________________________ Date of Placement:_________________________ Grant No. FWC - ________________________________ U.S. Army Corps (if applicable) Permit No.: _______________________________ Total project cost: $___________ (Funding Source(s) and Amount(s): FWC $____________ Local $ __________ Other $________) Name of Permitted Location Name Reef Site: ________________________________ for This Deployment:________________________ ° Latitude:_____ ______.___ ___ ___’ North Longitude:______ °_______.___ ___ ___’ West Degrees minutes decimal minutes Degrees minutes decimal minutes GPS Brand:__________________ GPS Model number:___________ Geographical Location: ______________ at __________degrees from ___________________________________ (nautical miles) (bearing) (reference inlet) Water Depth:________ feet (minus) Max. Material Height: ________feet (equals) Actual Vertical Clearance: ______feet TYPE AND AMOUNT OF MATERIAL DEPLOYED AT THE LOCATION DESCRIBED ABOVE: (ATTACH A PHOTOGRAPH OF THE MATERIAL ON THE BARGE IMMEDIATELY PRIOR TO DEPLOYMENT) Primary Type of Material:____________________________________________ Number of Pieces:__________ Dimensions:________________________________________________________________________________ Secondary Type of Material:_________________________________________ Number of Pieces:__________ Dimensions:________________________________________________________________________________ How was tonnage calculated?(Check all that apply, attach additional sheets if necessary): Before & after barge draft calculation Known weight of individual pieces TOTAL TONNAGE FOR THIS DEPLOYMENT: _______________________ Trucking receipts I DO HEREBY CERTIFY THAT THE ABOVE INFORMATION IS TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE Observer’s Name: _________________________________ Title: _________________________________ (PLEASE PRINT) (PLEASE PRINT) Observer’s Signature: _______________________________ Date: __________________________________ Observer’s Remarks: __________________________________________________________________________ ___________________________________________________________________________________________ I DO HEREBY CERTIFY THAT THE ABOVE INFORMATION COMPLIES WITH THE ABOVE REFERENCED PERMIT CONDITIONS Permittee’s Staff Name: _________________________________ Title: __________________________________ (PLEASE PRINT) (PLEASE PRINT) Permittee’s Staff Signature: ______________________________ Date: _________________________________ Local Tracking number ______________ FWC Tracking number _______________ Entered by _________ on _________ Rev. 4/23/2007 FWC initials date Packet Pg. 297  SELF-CERTIFICATION STATEMENT OF COMPLIANCE Permit Number: SAJ-2013-02668 (SP-SWA) Permittee’s Name & Address (please print or type): __________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Telephone Number: ____________________________________________________________________ Location of the Work: __________________________________________________________________ _____________________________________________________________________________________ Date Work Started: __________________________ Date Work Completed: ______________________ Description of the Work (e.g. bank stabilization, residential or commercial filling, docks, dredging, etc.): _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Acreage or Square Feet of Impacts to Waters of the United States: _______________________________ Describe Mitigation completed (if applicable): ______________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Describe any Deviations from the Permit (attach drawing(s) depicting the deviations): _____________________________________________________________________________________ _____________________________________________________________________________________ I certify that all work, and mitigation (if applicable) was done in accordance with the limitations and conditions as described in the permit. Any deviations as described above are depicted on the attached drawing(s). ______________________________ Signature of Permittee ______________________________ Date Packet Pg. 298  DEPARTMENT OF THE ARMY JACKSONVILLE DISTRICT CORPS OF ENGINEERS PENSACOLA REGULATORY OFFICE 41 NORTH JEFFERSON STREET, SUITE 301 PENSACOLA, FLORIDA 32502 REPLY TO ATTENTION OF March 10, 2014 Regulatory Division North Permits Branch Pensacola Permits Section SAJ-2012-03221 (SP-SWA) Okaloosa County Board of County Commissioners 1804 Lewis Turner Boulevard, Suite 100 Ft. Walton Beach, Florida 32547 Gentlemen: The U.S. Army Corps of Engineers (Corps) has completed the review and evaluation of your Department of the Army permit application, number SAJ-2012-03221. Our regulations require that you have an opportunity to review the terms and conditions prior to final signature by the Department of the Army. Enclosed is an unsigned Department of the Army permit instrument (permit). Please read carefully the Special Conditions beginning on page 3 of the permit. These were developed to apply specifically to your project. Water Quality Certification is also required prior to issuance of a permit. The Corps has received a copy of the State of Florida certification for your project. In accordance with General Condition 5 of the permit, any special conditions of the Water Quality Certification have been attached to the Department of the Army permit. Instructions for Objecting to Permit Terms and Conditions: This letter contains an initial proffered permit for your proposed project. If you object to certain terms and conditions contained within the permit, you may request that the permit be modified. Enclosed you will find a Notification of Administrative Appeal Options and Process fact sheet and Request for Appeal (RFA) form. If you choose to object to certain terms and conditions of the permit, you must follow the directions provided in Section 1, Part A and submit the completed RFA form to the letterhead address. In order for an RFA to be accepted by the Corps, the Corps must determine that it is complete, that it meets the criteria under 33 CFR Part 331.5, and that it has been received by the District office within 60 days of the date of the RFA. Should you decide to submit an RFA form, it must be received at the letterhead address by May 9, 2014. Instructions for Accepting Terms and Conditions and Finalizing Your Permit: It is not necessary to submit an RFA form to the District office, if you do not object to the decision in this letter. In this case, the permit must be signed by the applicant in the space provided on the signature page of the permit. In the case of corporations, Packet Pg. 299  -2- acceptance must be by an officer of that corporation authorized to sign on behalf of the corporation. The party responsible for assuring the work is done in accordance with the permit terms and conditions must sign the permit. Please type or print the name and title of the person signing below the signature and the date signed. SIGN (PAGE 9) AND RETURN THE ENTIRE PERMIT, INCLUDING ALL ATTACHMENTS, TO THE LETTERHEAD ADDRESS The permit will be signed by the District Engineer or his representative. The Corps will add the permit expiration date to the permit and return the permit to you. It is important to note that the permit is not valid until the District Engineer or his representative signs it. Please note U.S. Coast Guard regulations may require you as permittee to provide information for a Notice to the maritime community regarding your project. You should contact the Coast Guard Sector Mobile Waterways Management Branch (spw), 1500 15th Street, Mobile, AL 36615 or by phone at 251-441-5684 to determine if a Notice is necessary. Also any safety lights, signs and signals prescribed by the U.S. Coast Guard through their regulations or otherwise, must be installed and maintained at your expense as permittee on authorized facilities in navigable waters of the United States. To receive a U.S. Coast Guard Private Aids to Navigation marking determination, you are advised to contact the Eighth Coast Guard District (dpw), 500 Poydras St. Suite 1230, New Orleans, LA 70130, 504-671-2328 or via email to: D8oanPATON@uscg.mil prior to installation/construction of any fixed structures. For general information related to Private Aids to Navigation please visit the Eighth CG District web site at: http://www.uscg.mil/d8/waterways/PATON.Home.asp. Thank you for your cooperation with our permit program. The Corps’ Jacksonville District Regulatory Division is committed to improving service to our customers. We strive to perform our duty in a friendly and timely manner while working to preserve our environment. We invite you to complete our automated Customer Service Survey at http://corpsmapu.usace.army.mil/cm_apex/f?p=regulatory_survey. Please be aware this Internet address is case sensitive; and, you will need to enter it exactly as it appears above. Your input is appreciated – favorable or otherwise. If you have any questions concerning this application, you may contact Steve Andrews Jr. in writing at the letterhead address, by electronic mail at Packet Pg. 300 Packet Pg. 301 NOTIFICATION OF ADMINISTRATIVE APPEAL OPTIONS AND PROCESS AND REQUEST FOR APPEAL Applicant: Okaloosa County BOCC File Number: SAJ-2012-03221 Date: 10 March 2014 Attached is: See Section below X INITIAL PROFFERED PERMIT (Standard Permit or Letter of permission) A PROFFERED PERMIT (Standard Permit or Letter of permission) B PERMIT DENIAL C APPROVED JURISDICTIONAL DETERMINATION D PRELIMINARY JURISDICTIONAL DETERMINATION E SECTION I - The following identifies your rights and options regarding an administrative appeal of the above decision. Additional information may be found at http://www.usace.army.mil/CECW/Pages/reg_materials.aspx or Corps regulations at 33 CFR Part 331. A: INITIAL PROFFERED PERMIT: You may accept or object to the permit. • ACCEPT: If you received a Standard Permit, you may sign the permit document and return it to the district engineer for final authorization. If you received a Letter of Permission (LOP), you may accept the LOP and your work is authorized. Your signature on the Standard Permit or acceptance of the LOP means that you accept the permit in its entirety, and waive all rights to appeal the permit, including its terms and conditions, and approved jurisdictional determinations associated with the permit. • OBJECT: If you object to the permit (Standard or LOP) because of certain terms and conditions therein, you may request that the permit be modified accordingly. You must complete Section II of this form and return the form to the district engineer. Your objections must be received by the district engineer within 60 days of the date of this notice, or you will forfeit your right to appeal the permit in the future. Upon receipt of your letter, the district engineer will evaluate your objections and may: (a) modify the permit to address all of your concerns, (b) modify the permit to address some of your objections, or (c) not modify the permit having determined that the permit should be issued as previously written. After evaluating your objections, the district engineer will send you a proffered permit for your reconsideration, as indicated in Section B below. B: PROFFERED PERMIT: You may accept or appeal the permit • ACCEPT: If you received a Standard Permit, you may sign the permit document and return it to the district engineer for final authorization. If you received a Letter of Permission (LOP), you may accept the LOP and your work is authorized. Your signature on the Standard Permit or acceptance of the LOP means that you accept the permit in its entirety, and waive all rights to appeal the permit, including its terms and conditions, and approved jurisdictional determinations associated with the permit. • APPEAL: If you choose to decline the proffered permit (Standard or LOP) because of certain terms and conditions therein, you may appeal the declined permit under the Corps of Engineers Administrative Appeal Process by completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of this notice. C: PERMIT DENIAL: You may appeal the denial of a permit under the Corps of Engineers Administrative Appeal Process by completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of this notice. D: APPROVED JURISDICTIONAL DETERMINATION: You may accept or appeal the approved JD or provide new information. • ACCEPT: You do not need to notify the Corps to accept an approved JD. Failure to notify the Corps within 60 days of the date of this notice, means that you accept the approved JD in its entirety, and waive all rights to appeal the approved JD. • APPEAL: If you disagree with the approved JD, you may appeal the approved JD under the Corps of Engineers Administrative Appeal Process by completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of this notice. Packet Pg. 302 SECTION II - REQUEST FOR APPEAL or OBJECTIONS TO AN INITIAL PROFFERED PERMIT REASONS FOR APPEAL OR OBJECTIONS: (Describe your reasons for appealing the decision or your objections to an initial proffered permit in clear concise statements. You may attach additional information to this form to clarify where your reasons or objections are addressed in the administrative record.) ADDITIONAL INFORMATION: The appeal is limited to a review of the administrative record, the Corps memorandum for the record of the appeal conference or meeting, and any supplemental information that the review officer has determined is needed to clarify the administrative record. Neither the appellant nor the Corps may add new information or analyses to the record. However, you may provide additional information to clarify the location of information that is already in the administrative record. POINT OF CONTACT FOR QUESTIONS OR INFORMATION: If you have questions regarding this decision and/or the If you only have questions regarding the appeal process appeal process you may contact: you may also contact: for process: Project Manager as noted in letter Stuart Santos 904-232-2018 RIGHT OF ENTRY: Your signature below grants the right of entry to Corps of Engineers personnel, and any government consultants, to conduct investigations of the project site during the course of the appeal process. You will be provided a 15 day notice of any site investigation, and will have the opportunity to participate in all site investigations. Date: Telephone number: _______________________________ Signature of appellant or agent. Packet Pg. 303  DEPARTMENT OF THE ARMY PERMIT Permittee: Okaloosa County Board of County Commissioners 1804 Lewis Turner Boulevard, Suite 100 Ft. Walton Beach, Florida 32547 Permit No: SAJ-2012-03221 (SP-SWA) Issuing Office: U.S. Army Engineer District, Jacksonville NOTE: The term "you" and its derivatives, as used in this permit, means the permittee or any future transferee. The term "this office" refers to the appropriate district or division office of the Corps of Engineers having jurisdiction over the permitted activity or the appropriate official of that office acting under the authority of the commanding officer. You are authorized to perform work in accordance with the terms and conditions specified below. Project Description: The applicant proposes to establish an artificial reef area, which would be referred to as the “Fish Haven #15”. It would consist of a ¼ by ¼ mile deployment area, totaling 40 acres, which would provide enhanced habitat and recreational fishing and diving opportunities upon implementation of the project. Additionally, there would be a deployment buffer of 50 feet on each side. Material to be deployed would consist of clean concrete or rock and prefabricated structures that are a mixture of clean concrete and heavy gauge steel. The material to be deployed would have a maximum profile height of no more than 30 feet and would result in a minimum authorized depth of -38 feet at mean lower low water MLLW. The applicant would implement a monitoring plan. The work described above is to be completed in accordance with the three (3) pages of drawings affixed at the end of this permit instrument. Project Location: The project site is located in the Gulf of Mexico, 10.2 nautical miles southwest of Destin pass, 3.3 nautical miles north of the East-West Safety Fairway and 1.8 nautical miles south of Okaloosa Island off of Okaloosa County, Florida. Latitude & Longitude: NE Site Corner: Latitude: 30.3667° North Longitude: 86.7041° West NW Site Corner: Latitude: 30.3667° North Longitude: 86.7083° West SE Site Corner: Latitude: 30.3630° North Packet Pg. 304 PERMIT NUMBER: SAJ-2012-03221 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 2 of 11 Longitude: 86.7041° West SW Site Corner: Latitude: 30.3630° North Longitude: 86.7083° West Permit Conditions General Conditions: 1. The time limit for completing the work authorized ends on March 10, 2024. If you find that you need more time to complete the authorized activity, submit your request for a time extension to this office for consideration at least one month before the above date is reached. 2. You must maintain the activity authorized by this permit in good condition and in conformance with the terms and conditions of this permit. You are not relieved of this requirement if you abandon the permitted activity, although you may make a good faith transfer to a third party in compliance with General Condition 4 below. Should you wish to cease to maintain the authorized activity or should you desire to abandon it without a good faith transfer, you must obtain a modification of this permit from this office, which may require restoration of the area. 3. If you discover any previously unknown historic or archeological remains while accomplishing the activity authorized by this permit, you must immediately notify this office of what you have found. We will initiate the Federal and State coordination required to determine if the remains warrant a recovery effort or if the site is eligible for listing in the National Register of Historic Places. 4. If you sell the property associated with this permit, you must obtain the signature and the mailing address of the new owner in the space provided and forward a copy of the permit to this office to validate the transfer of this authorization. 5. If a conditioned water quality certification has been issued for your project, you must comply with the conditions specified in the certification as special conditions to this permit. For your convenience, a copy of the certification is attached if it contains such conditions. 6. You must allow representatives from this office to inspect the authorized activity at any time deemed necessary to ensure that it is being or has been accomplished in accordance with the terms and conditions of your permit. Packet Pg. 305 PERMIT NUMBER: SAJ-2012-03221 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 3 of 11 Special Conditions: 1. Reporting Addresses: The Permittee shall reference this permit number, SAJ- 2012-03221 (SP-SWA), on all correspondence. Unless specifically notified to the contrary, the Permittee shall use the following addresses for transmitting correspondence to the referenced agencies: (a) U.S. Army Corps of Engineers, Regulatory Division, Enforcement Section 41 North Jefferson Street, Suite 301 Pensacola, Florida 32502 The Permittee shall reference this permit number, SAJ-2010-03163 (SP-SWA), on all submittals. Or email at: CESAJ-ComplyDocs@usace.army.mil (b) National Oceanic and Atmospheric Administration (NOAA), Marine Chart Division, Office of Coast Survey, N/CS26, Sta. 7317 1315 East-West Highway Silver Springs, MD, 20910-3282 Or email at: ocs.ndb@noaa.gov. (c) Commander, U.S. Coast Guard (USCG) 8th Coast Guard District Hale Boggs Federal Building 500 Poydras Street New Orleans, LA 70130 (d) Florida Fish and Wildlife Conservation Commission (FWC), Artificial Reef Program, 620 S. Meridian Street, Box 4B2 Tallahassee, FL 32399. Or email at: artificialreefdeployments@MyFWC.com 2. Initial Agency Notification: The Permittee shall provide to the Corps, NOAA and USCG written notification of the planned deployment start date at least two weeks prior to the initial deployment on the authorized artificial reef site. 3. Protection of Existing Resources: The Permittee shall not deploy artificial reef materials until an assessment of the bottom conditions have been accomplished by diver, submersible video camera, fathometer, depth/bottom sounder (e.g. “fish finder”), or side-scan sonar. The inspection of the deployment area may occur at the time of deployment, but no more than one year prior to deployment. The Permittee shall Packet Pg. 306 PERMIT NUMBER: SAJ-2012-03221 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 4 of 11 maintain a deployment buffer of at least 200 feet from any submerged beds of sea grasses, coral reefs, live bottom, areas supporting growth of sponges, sea fans, soft corals, and other sessile macroinvertebrates generally associated with rock outcrops, oyster reefs, scallop beds, clam beds, or areas where there are unique or unusual concentrations of bottom-dwelling marine organisms. If, during the inspection, evidence is observed of cultural/archaeological resources, such as sunken vessels, ballast, historic refuse piles, or careenage areas the Corps will be notified by the Permittee and the above referenced deployment buffer will be implemented. The Permittee shall maintain a record of the information gained during the inspection such that it can be provided upon request to the Corps. 4. Pre-Deployment Notification: No less than 14 days prior to deployment of material on an artificial reef, the Permittee shall transmit by electronic mail (“email”) a complete and signed “Florida Artificial Reef Materials Cargo Manifest and Pre-Deployment Notification” form, attached to this permit, to the Corps and FWC to allow inspection of the proposed reef materials as deemed necessary by the agencies. Inspection is allowable at the staging area. By signing the Pre-Deployment Notification the Permittee certifies that all materials are free from asphalt, petroleum, other hydrocarbons and toxic residues. The Permittee shall not deploy material if notified by the Corps or FWC that the material is questionable. The material needs to be evaluated before it is released for deployment. Any material that is deemed unacceptable for reef material will be disposed in an approved upland disposal site. Deployment of the material shall not occur until after the end of the 14-day inspection period. The Permittee shall ensure both a copy of the Corps permit and the signed “Florida Artificial Reef Materials Cargo Manifest and Pre-Deployment Notification Form” are maintained aboard the deployment vessel at all times during loading, transit, and deployment. 5. Post-Deployment Placement Report/As-Built Drawing: No less than 30 days after deployment at the reef site, the Permittee shall transmit by email to the Corps, FWC, and NOAA a complete and signed “Florida Artificial Reef Materials Placement Report and Post-Deployment Notification” form attached to this permit. Please note, the Corps requires the latitude and longitude to be accurate within 5 meters horizontal distance on the post-deployment report. Attach to the report, an as-built drawing that contains the approximate deployment configurations and the height of the material after placement. Depth shall be verified utilizing fathometer, depth sounder, or similar device accurate to within 1 meter. Also, include information on the condition of the material at the time of deployment. The report and drawing shall be limited to a few pages per deployment. Representative photographs and/or video, if available, are encouraged to be submitted. Packet Pg. 307 PERMIT NUMBER: SAJ-2012-03221 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 5 of 11 6. Ownership/Maintenance/Liability: By signing this permit, the Permittee certifies and acknowledges ownership of all artificial reef materials deployed on the reef, accepts responsibility for maintenance of the artificial reef, and possesses the ability to assume liability for all damages that may arise with respect to the artificial reef. 7. Assurance of Navigation and Maintenance: The Permittee understands and agrees that, if future operations by the United States require the removal, relocation, or other alteration, of the structures or work herein authorized, or if in the opinion of the Secretary of the Army or his authorized representative, said structure or work shall cause unreasonable obstruction to the free navigation of the navigable waters, the Permittee will be required, upon due notice from the Corps of Engineers, to remove, relocate, or alter the structural work or obstructions caused thereby, without expense to the United States. No claim shall be made against the United States on account of any such removal or alteration. 8. Sea Turtle, Smalltooth Sawfish and Sturgeon Conditions: The Permittee shall comply with the attached National Marine Fisheries Service’s “Sea Turtle and Smalltooth Sawfish Construction Conditions”, which also applies to sturgeon. 9. Manatee Conditions: The Permittee shall comply with the attached “Standard Manatee Conditions for In-Water Work – 2011.” 10. Protected Species Guidance: The Permittee shall comply with the attached “Vessel Strike Avoidance Measures and Injured or Dead Protected Species Reporting” guidance for marine turtles and marine mammals. 11. Self-Certification: Within 60 days of completion of the authorized work or at the expiration of the construction authorization of this permit, whichever occurs first, the Permittee shall complete the attached “Self-Certification Statement of Compliance” form and submit to the Corps. In the event that the completed work deviates, in any manner, from the authorized work, the Permittee shall describe, on the Self-Certification Form, the deviations between the work authorized by the permit and the work as constructed. Please note that the description of any deviations on the Self-Certification Form does not constitute approval of any deviations by the Corps. 12. Cultural Resources/Historic Properties: a. No structure or work shall adversely affect impact or disturb properties listed in the National Register of Historic Places (NRHP) or those eligible for inclusion in the NRHP. b. If during the ground disturbing activities and construction work within the permit area, there are archaeological/cultural materials encountered which were not the Packet Pg. 308 PERMIT NUMBER: SAJ-2012-03221 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 6 of 11 subject of a previous cultural resources assessment survey (and which shall include, but not be limited to: pottery, modified shell, flora, fauna, human remains, ceramics, stone tools or metal implements, dugout canoes, evidence of structures or any other physical remains that could be associated with Native American cultures or early colonial or American settlement), the Permittee shall immediately stop all work in the vicinity and notify the Corps. The Corps shall then notify the Florida State Historic Preservation Officer (SHPO) and the appropriate Tribal Historic Preservation Officer(s) (THPO(s)) to assess the significance of the discovery and devise appropriate actions. c. A cultural resources assessment may be required of the permit area, if deemed necessary by the SHPO, THPO(s), or Corps, in accordance with 36 CFR 800 or 33 CFR 325, Appendix C (5). Based, on the circumstances of the discovery, equity to all parties, and considerations of the public interest, the Corps may modify, suspend or revoke the permit in accordance with 33 CFR Part 325.7. Such activity shall not resume on non- federal lands without written authorization from the SHPO and the Corps. d. In the unlikely event that unmarked human remains are identified on non-federal lands, they will be treated in accordance with Section 872.05 Florida Statutes. All work in the vicinity shall immediately cease and the Permittee shall immediately notify the medical examiner, Corps, and State Archeologist. The Corps shall then notify the appropriate SHPO and THPO(s). Based, on the circumstances of the discovery, equity to all parties, and considerations of the public interest, the Corps may modify, suspend or revoke the permit in accordance with 33 CFR Part 325.7. Such activity shall not resume without written authorization from the State Archeologist, SHPO and the Corps. e. In the unlikely event that human remains are encountered on federal or tribal lands, or in situations where Archaeological Resources Protection Act of 1979, or Native American Graves Protection Repatriation Act of 1990 applies, all work in the vicinity shall immediately cease and the Permittee immediately notify the Corps. The Corps shall then notify the appropriate THPO(s) and SHPO. Based, on the circumstances of the discovery, equity to all parties, and considerations of the public interest, the Corps may modify, suspend or revoke the permit in accordance with 33 CFR Part 325.7. After such notification, project activities on federal lands shall not resume without written authorization from the Corps, and/or appropriate THPO(s), SHPO, and federal manager. After such notification, project activities on tribal lands shall not resume without written authorization from the appropriate THPO(s) and the Corps. Further Information: 1. Congressional Authorities: You have been authorized to undertake the activity described above pursuant to: Packet Pg. 309 PERMIT NUMBER: SAJ-2012-03221 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 7 of 11 (X) Section 10 of the Rivers and Harbors Act of 1899 (33 U.S.C. 403). (X) Section 404 of the Clean Water Act (33 U.S.C. 1344). ( ) Section 103 of the Marine Protection, Research and Sanctuaries Act of 1972 (33 U.S.C. 1413). 2. Limits of this authorization. a. This permit does not obviate the need to obtain other Federal, State, or local authorizations required by law. b. This permit does not grant any property rights or exclusive privileges. c. This permit does not authorize any injury to the property or rights of others. d. This permit does not authorize interference with any existing or proposed Federal projects. 3. Limits of Federal Liability. In issuing this permit, the Federal Government does not assume any liability for the following: a. Damages to the permitted project or uses thereof as a result of other permitted or unpermitted activities or from natural causes. b. Damages to the permitted project or uses thereof as a result of current or future activities undertaken by or on behalf of the United States in the public interest. c. Damages to persons, property, or to other permitted or unpermitted activities or structures caused by the activity authorized by this permit. d. Design or construction deficiencies associated with the permitted work. e. Damage claims associated with any future modification, suspension, or revocation of this permit. 4. Reliance on Applicant's Data: The determination of this office that issuance of this permit is not contrary to the public interest was made in reliance on the information you provided. Packet Pg. 310 PERMIT NUMBER: SAJ-2012-03221 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 8 of 11 5. Reevaluation of Permit Decision: This office may reevaluate its decision on this permit at any time the circumstances warrant. Circumstances that could require a reevaluation include, but are not limited to, the following: a. You fail to comply with the terms and conditions of this permit. b. The information provided by you in support of your permit application proves to have been false, incomplete, or inaccurate (see 4 above). c. Significant new information surfaces which this office did not consider in reaching the original public interest decision. Such a reevaluation may result in a determination that it is appropriate to use the suspension, modification, and revocation procedures contained in 33 CFR 325.7 or enforcement procedures such as those contained in 33 CFR 326.4 and 326.5. The referenced enforcement procedures provide for the issuance of an administrative order requiring you comply with the terms and conditions of your permit and for the initiation of legal action where appropriate. You will be required to pay for any corrective measures ordered by this office, and if you fail to comply with such directive, this office may in certain situations (such as those specified in 33 CFR 209.170) accomplish the corrective measures by contract or otherwise and bill you for the cost. 6. Extensions: General Condition 1 establishes a time limit for the completion of the activity authorized by this permit. Unless there are circumstances requiring either a prompt completion of the authorized activity or a reevaluation of the public interest decision, the Corps will normally give favorable consideration to a request for an extension of this time limit. Packet Pg. 311 PERMIT NUMBER: SAJ-2012-03221 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 9 of 11 Your signature below, as permittee, indicates that you accept and agree to comply with the terms and conditions of this permit. _______________________________________ ____________________ (PERMITTEE) (DATE) _______________________________________ (PERMITTEE NAME-PRINTED) This permit becomes effective when the Federal official, designated to act for the Secretary of the Army, has signed below. _______________________________________ ____________________ (DISTRICT ENGINEER) (DATE) Alan M. Dodd, Colonel, U.S. Army District Commander Packet Pg. 312 PERMIT NUMBER: SAJ-2012-03221 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 10 of 11 When the structures or work authorized by this permit are still in existence at the time the property is transferred, the terms and conditions of this permit will continue to be binding on the new owner(s) of the property. To validate the transfer of this permit and the associated liabilities associated with compliance with its terms and conditions, have the transferee sign and date below. _______________________________________ ____________________ (TRANSFEREE-SIGNATURE) (DATE) _______________________________________ (NAME-PRINTED) _______________________________________ (ADDRESS) ______________________________________________________ (CITY, STATE, AND ZIP CODE) Packet Pg. 313 PERMIT NUMBER: SAJ-2012-03221 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 11 of 11 Attachments to Department of the Army Permit Number SAJ-2012-03221 1. PERMIT DRAWINGS: Three (3) pages, dated 25 February 2014. 2. WATER QUALITY CERTIFICATION: Specific Conditions of the water quality permit/certification in accordance with General Condition number 5 on page 3 of this DA permit. Six (6) pages. 3. SEA TURTLE, SAWFISH AND STURGEON CONDITIONS: One (1) page. 4. MANATEE CONDITIONS: One (1) page. 5. VESSEL STRIKE AVOIDANCE MEASURES: Two (2) pages. 6. FLORIDA ARTIFICIAL REEF MATERIALS CARGO MANIFEST AND PRE- DEPLOYMENT NOTIFICATION FORM: 7. FLORIDA ARTIFICIAL REEF MATERIALS PLACEMENT REPORT AND POST- DEPLOYMENT NOTIFICATION FORM: 8. SELF-CERTIFICATION FORM: One (1) page. Packet Pg. 314 Packet Pg. 315 Packet Pg. 316 Packet Pg. 317  UNITED STATES DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration NATIONAL MARINE FISHERIES SERVICE Southeast Regional Office 263 13th Avenue South St. Petersburg, FL 33701 SEA TURTLE AND SMALLTOOTH SAWFISH CONSTRUCTION CONDITIONS The permittee shall comply with the following protected species construction conditions: a. The permittee shall instruct all personnel associated with the project of the potential presence of these species and the need to avoid collisions with sea turtles and smalltooth sawfish. All construction personnel are responsible for observing water-related activities for the presence of these species. b. The permittee shall advise all construction personnel that there are civil and criminal penalties for harming, harassing, or killing sea turtles or smalltooth sawfish, which are protected under the Endangered Species Act of 1973. c. Siltation barriers shall be made of material in which a sea turtle or smalltooth sawfish cannot become entangled, be properly secured, and be regularly monitored to avoid protected species entrapment. Barriers may not block sea turtle or smalltooth sawfish entry to or exit from designated critical habitat without prior agreement from the National Marine Fisheries Service’s Protected Resources Division, St. Petersburg, Florida. d. All vessels associated with the construction project shall operate at “no wake/idle” speeds at all times while in the construction area and while in water depths where the draft of the vessel provides less than a four-foot clearance from the bottom. All vessels will preferentially follow deep-water routes (e.g., marked channels) whenever possible. e. If a sea turtle or smalltooth sawfish is seen within 100 yards of the active daily construction/dredging operation or vessel movement, all appropriate precautions shall be implemented to ensure its protection. These precautions shall include cessation of operation of any moving equipment closer than 50 feet of a sea turtle or smalltooth sawfish. Operation of any mechanical construction equipment shall cease immediately if a sea turtle or smalltooth sawfish is seen within a 50-ft radius of the equipment. Activities may not resume until the protected species has departed the project area of its own volition. f. Any collision with and/or injury to a sea turtle or smalltooth sawfish shall be reported immediately to the National Marine Fisheries Service’s Protected Resources Division (727-824- 5312) and the local authorized sea turtle stranding/rescue organization. g. Any special construction conditions, required of your specific project, outside these general conditions, if applicable, will be addressed in the primary consultation. Revised: March 23, 2006 O:\forms\Sea Turtle and Smalltooth Sawfish Construction Conditions.doc Packet Pg. 318  STANDARD MANATEE CONDITIONS FOR IN-WATER WORK 2011 The permittee shall comply with the following conditions intended to protect manatees from direct project effects: a. All personnel associated with the project shall be instructed about the presence of manatees and manatee speed zones, and the need to avoid collisions with and injury to manatees. The permittee shall advise all construction personnel that there are civil and criminal penalties for harming, harassing, or killing manatees which are protected under the Marine Mammal Protection Act, the Endangered Species Act, and the Florida Manatee Sanctuary Act. b. All vessels associated with the construction project shall operate at "Idle Speed/No Wake” at all times while in the immediate area and while in water where the draft of the vessel provides less than a four-foot clearance from the bottom. All vessels will follow routes of deep water whenever possible. c. Siltation or turbidity barriers shall be made of material in which manatees cannot become entangled, shall be properly secured, and shall be regularly monitored to avoid manatee entanglement or entrapment. Barriers must not impede manatee movement. d. All on-site project personnel are responsible for observing water-related activities for the presence of manatee(s). All in-water operations, including vessels, must be shutdown if a manatee(s) comes within 50 feet of the operation. Activities will not resume until the manatee(s) has moved beyond the 50-foot radius of the project operation, or until 30 minutes elapses if the manatee(s) has not reappeared within 50 feet of the operation. Animals must not be herded away or harassed into leaving. e. Any collision with or injury to a manatee shall be reported immediately to the Florida Fish and Wildlife Conservation Commission (FWC) Hotline at 1-888-404-3922. Collision and/or injury should also be reported to the U.S. Fish and Wildlife Service in Jacksonville (1-904- 731-3336) for north Florida or Vero Beach (1-772-562-3909) for south Florida, and to FWC at ImperiledSpecies@myFWC.com Packet Pg. 319  Vessel Strike Avoidance Measures and Reporting for Mariners NOAA Fisheries Service, Southeast Region Background The National Marine Fisheries Service (NMFS) has determined that collisions with vessels can injure or kill protected species (e.g., endangered and threatened species, and marine mammals). The following standard measures should be implemented to reduce the risk associated with vessel strikes or disturbance of these protected species to discountable levels. NMFS should be contacted to identify any additional conservation and recovery issues of concern, and to assist in the development of measures that may be necessary. Protected Species Identification Training Vessel crews should use an Atlantic and Gulf of Mexico reference guide that helps identify protected species that might be encountered in U.S. waters of the Atlantic Ocean, including the Caribbean Sea, and Gulf of Mexico. Additional training should be provided regarding information and resources available regarding federal laws and regulations for protected species, ship strike information, critical habitat, migratory routes and seasonal abundance, and recent sightings of protected species. Vessel Strike Avoidance In order to avoid causing injury or death to marine mammals and sea turtles the following measures should be taken when consistent with safe navigation: 1. Vessel operators and crews should maintain a vigilant watch for marine mammals and sea turtles to avoid striking sighted protected species. 2. When whales are sighted, maintain a distance of 100 yards or greater between the whale and the vessel. 3. When sea turtles or small cetaceans are sighted, attempt to maintain a distance of 50 yards or greater between the animal and the vessel whenever possible. 4. When small cetaceans are sighted while a vessel is underway (e.g., bow-riding), attempt to remain parallel to the animal’s course. Avoid excessive speed or abrupt changes in direction until the cetacean has left the area. 5. Reduce vessel speed to 10 knots or less when mother/calf pairs, groups, or large assemblages of cetaceans are observed near an underway vessel, when safety permits. A single cetacean at the surface may indicate the presence of submerged animals in the vicinity; therefore, prudent precautionary measures should always be exercised. The vessel should attempt to route around the animals, maintaining a minimum distance of 100 yards whenever possible. NMFS Southeast Region Vessel Strike Avoidance Measures and Reporting for Mariners; revised February 2008. Packet Pg. 320  6. Whales may surface in unpredictable locations or approach slowly moving vessels. When an animal is sighted in the vessel’s path or in close proximity to a moving vessel and when safety permits, reduce speed and shift the engine to neutral. Do not engage the engines until the animals are clear of the area. Additional Requirements for the North Atlantic Right Whale 1. If a sighted whale is believed to be a North Atlantic right whale, federal regulation requires a minimum distance of 500 yards be maintained from the animal (50 CFR 224.103 (c)). 2. Vessels entering North Atlantic right whale critical habitat are required to report into the Mandatory Ship Reporting System. 3. Mariners should check with various communication media for general information regarding avoiding ship strikes and specific information regarding North Atlantic right whale sighting locations. These include NOAA weather radio, U.S. Coast Guard NAVTEX broadcasts, and Notices to Mariners. Commercial mariners calling on United States ports should view the most recent version of the NOAA/USCG produced training CD entitled “A Prudent Mariner’s Guide to Right Whale Protection” (contact the NMFS Southeast Region, Protected Resources Division for more information regarding the CD). 4. Injured, dead, or entangled right whales should be immediately reported to the U.S. Coast Guard via VHF Channel 16. Injured or Dead Protected Species Reporting Vessel crews should report sightings of any injured or dead protected species immediately, regardless of whether the injury or death is caused by your vessel. Report marine mammals to the Southeast U.S. Stranding Hotline: 877-433-8299 Report sea turtles to the NMFS Southeast Regional Office: 727-824-5312 If the injury or death of a marine mammal was caused by a collision with your vessel, responsible parties should remain available to assist the respective salvage and stranding network as needed. NMFS’ Southeast Regional Office should be immediately notified of the strike by email (takereport.nmfsser@noaa.gov) using the attached vessel strike reporting form. For additional information, please contact the Protected Resources Division at: NOAA Fisheries Service Southeast Regional Office th 263 13 Avenue South St. Petersburg, FL 33701 Tel: (727) 824-5312 Visit us on the web at http://sero.nmfs.noaa.gov NMFS Southeast Region Vessel Strike Avoidance Measures and Reporting for Mariners; revised February 2008. Packet Pg. 321  FLORIDA ARTIFICIAL REEF MATERIALS CARGO MANIFEST AND PRE-DEPLOYMENT NOTIFICATION (Issued pursuant to Ch. 379.249(6)(b), Florida Statutes) I, ______________________________________________ ______________________ ________________ Name of individual managing reef deployment (print) Signature Date whose address is __________________________________________________________, (____) _____ - _____ Street City State Zip Code Phone declare that I am staging and transporting the following artificial reef construction materials allowable pursuant to the U.S. Army Corps of Engineers Artificial Reef Permit referenced below and agree to comply with all permit conditions in the permit listed below and attached to this manifest. I understand this artificial reef site is open to public access and this authorization does not provide any rights or exclusive private use over those rights or uses to the general public. The address of the land based reef materials staging area is: ______________________________________ Transporting Vessel Registration Number: _____________________________________________________ Vessel Owner: _____________________________ Vessel Operator: ______________________________ The following items are to be deployed as reef material (attach additional sheets when more than four locations): MATERIAL TAG Descriptions of material ID NUMBER(S), GPS Coordinates if applicable (number of pieces, type, dimension, weight) degrees, minutes, decimal minutes (DD°MM.mmm’) Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ A copy of the below referenced permit(s) and all associated conditions is attached to this manifest and shall be carried on board the vessel during loading, storing, or transporting artificial reef material. -- OFFICIAL USE ONLY -- (TO BE COMPLETED BY PERMIT HOLDER, OR AUTHORIZED ARTIFICIAL REEF INSPECTOR) Permit Holder: ______________________________________________________________________________ Name of U.S. Department of the Army, Corps of Engineers (ACOE) Permit Holder ACOE permit number ________________________, permitted site name _______________________________ issued on _________________________________ and has an expiration date of ________________________. Local tracking number (if applicable): __________________________________________________________ _________________________________________________________ (Name of FWC authorized Artificial Reef Inspector, printed) _________________________________________________________ ________________ (Signature) Packet (Date) Pg. 322 Revised 4/23/07  EXPLANATION SHEET FOR THE ARTIFICIAL REEF MATERIALS CARGO MANIFEST FORM The attached artificial reef cargo manifest has been developed in compliance with subsection 379.249(6)(b), Florida Statutes, which states that: “It is unlawful for any person to: store, possess or transport on or across state waters any materials reasonably suited for artificial reef construction and stored in such a manner providing ready access for use and placement as an artificial reef, unless a valid cargo manifest issued by the commission or a commission-certified inspector is onboard the transporting vessel. The manifest will serve as authorization to use a valid permitted site or land-based staging area, which will validate that the type of artificial reef construction material being transported is permissible for use at the permitted site, and will describe and quantify the artificial reef material being transported. The manifest will also include the latitude and longitude coordinates of the proposed deployment location, the valid permit number, and the copy off the permit conditions for the permitted site. The manifest must be available for inspection by any authorized law enforcement officer or commission employee.” This requirement for a cargo manifest became part of the statutory revision of the artificial reef program statute Section 379.249 Florida Statutes (F.S.), modified during the 2000 State of Florida Legislature. The statutory language allows a “commission certified inspector” to complete and approve the artificial reef materials cargo manifest. Therefore, we are providing the attached cargo manifest form to all local coastal government artificial reef coordinators and eligible non-profit corporations who may physically construct artificial reefs with the approval of the permit holders. INSTRUCTIONS A separate cargo manifest form is to be completed for each load to be transported offshore (i.e., one manifest per voyage). The manifest is to list all, and only, the reef materials onboard. The top of the form is to be filled out by the reef builder with his/her contact information and the information about the proposed reef materials to be deployed written into the boxes. If several materials are identical but have different tag numbers, please write “SAME” in the box for the other materials. Also put “SAME” under additional coordinates if all materials are going to the same deployment site. The shaded portion of the form at the bottom is to be filled out by the materials inspector. The cargo manifest must be completed by an entity representing the holder of the applicable artificial reef permit to assure that all materials meet the requirements of the permit. Completion of the artificial reef materials cargo manifest is required for all construction activities. The requirement to complete this document is not intended to be an undue burden on entities wishing to legally construct artificial reefs within permitted sites, but is a tool to assist law enforcement personnel in preventing the illegal construction of artificial reefs without the knowledge of the permit holder or in areas outside of legally permitted sites. It is intended to allow law enforcement staff to determine whether or not a load of materials is legal under the permit conditions. Without a properly completed Cargo Manifest Form on board, reef builders will be returned to port pursuant to Chapter 379.249 (6) (b). It is not necessary to send a copy of the Cargo Manifest Form to the FWC artificial reef section in Tallahassee. Documentation of the reef building activity should be maintained by the entity issuing the manifest in the event of any FWC inquiries. Reminder: the placement of all public artificial reefs in state or adjacent federal waters requires the submittal of a Materials Placement Report to the FWC artificial reef program within 30 days of public reef deployment in accordance with s. 379.249 F.S. Packet Pg. 323  FLORIDA ARTIFICIAL REEF MATERIALS PLACEMENT REPORT AND POST-DEPLOYMENT NOTIFICATION To Be Completed For Each Deployment Location or Date of Deployment County or Municipality:_____________________________________ Date of Placement:_________________________ Grant No. FWC - ________________________________ U.S. Army Corps (if applicable) Permit No.: _______________________________ Total project cost: $___________ (Funding Source(s) and Amount(s): FWC $____________ Local $ __________ Other $________) Name of Permitted Location Name Reef Site: ________________________________ for This Deployment:________________________ ° Latitude:_____ ______.___ ___ ___’ North Longitude:______ °_______.___ ___ ___’ West Degrees minutes decimal minutes Degrees minutes decimal minutes GPS Brand:__________________ GPS Model number:___________ Geographical Location: ______________ at __________degrees from ___________________________________ (nautical miles) (bearing) (reference inlet) Water Depth:________ feet (minus) Max. Material Height: ________feet (equals) Actual Vertical Clearance: ______feet TYPE AND AMOUNT OF MATERIAL DEPLOYED AT THE LOCATION DESCRIBED ABOVE: (ATTACH A PHOTOGRAPH OF THE MATERIAL ON THE BARGE IMMEDIATELY PRIOR TO DEPLOYMENT) Primary Type of Material:____________________________________________ Number of Pieces:__________ Dimensions:________________________________________________________________________________ Secondary Type of Material:_________________________________________ Number of Pieces:__________ Dimensions:________________________________________________________________________________ How was tonnage calculated?(Check all that apply, attach additional sheets if necessary): Before & after barge draft calculation Known weight of individual pieces TOTAL TONNAGE FOR THIS DEPLOYMENT: _______________________ Trucking receipts I DO HEREBY CERTIFY THAT THE ABOVE INFORMATION IS TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE Observer’s Name: _________________________________ Title: _________________________________ (PLEASE PRINT) (PLEASE PRINT) Observer’s Signature: _______________________________ Date: __________________________________ Observer’s Remarks: __________________________________________________________________________ ___________________________________________________________________________________________ I DO HEREBY CERTIFY THAT THE ABOVE INFORMATION COMPLIES WITH THE ABOVE REFERENCED PERMIT CONDITIONS Permittee’s Staff Name: _________________________________ Title: __________________________________ (PLEASE PRINT) (PLEASE PRINT) Permittee’s Staff Signature: ______________________________ Date: _________________________________ Local Tracking number ______________ FWC Tracking number _______________ Entered by _________ on _________ Rev. 4/23/2007 FWC initials date Packet Pg. 324  SELF-CERTIFICATION STATEMENT OF COMPLIANCE Permit Number: SAJ-2012-03221 (SP-SWA) Permittee’s Name & Address (please print or type): __________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Telephone Number: ____________________________________________________________________ Location of the Work: __________________________________________________________________ _____________________________________________________________________________________ Date Work Started: __________________________ Date Work Completed: ______________________ Description of the Work (e.g. bank stabilization, residential or commercial filling, docks, dredging, etc.): _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Acreage or Square Feet of Impacts to Waters of the United States: _______________________________ Describe Mitigation completed (if applicable): ______________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Describe any Deviations from the Permit (attach drawing(s) depicting the deviations): _____________________________________________________________________________________ _____________________________________________________________________________________ I certify that all work, and mitigation (if applicable) was done in accordance with the limitations and conditions as described in the permit. Any deviations as described above are depicted on the attached drawing(s). ______________________________ Signature of Permittee ______________________________ Date Packet Pg. 325  DEPARTMENT OF THE ARMY JACKSONVILLE DISTRICT CORPS OF ENGINEERS PENSACOLA REGULATORY OFFICE 41 NORTH JEFFERSON STREET, SUITE 301 PENSACOLA, FLORIDA 32502 REPLY TO ATTENTION OF March 10, 2014 Regulatory Division North Permits Branch Pensacola Permits Section SAJ-2012-03222 (SP-SWA) Okaloosa County Board of County Commissioners 1804 Lewis Turner Boulevard, Suite 100 Ft. Walton Beach, Florida 32547 Gentlemen: The U.S. Army Corps of Engineers (Corps) has completed the review and evaluation of your Department of the Army permit application, number SAJ-2012-03222. Our regulations require that you have an opportunity to review the terms and conditions prior to final signature by the Department of the Army. Enclosed is an unsigned Department of the Army permit instrument (permit). Please read carefully the Special Conditions beginning on page 3 of the permit. These were developed to apply specifically to your project. Water Quality Certification is also required prior to issuance of a permit. The Corps has received a copy of the State of Florida certification for your project. In accordance with General Condition 5 of the permit, any special conditions of the Water Quality Certification have been attached to the Department of the Army permit. Instructions for Objecting to Permit Terms and Conditions: This letter contains an initial proffered permit for your proposed project. If you object to certain terms and conditions contained within the permit, you may request that the permit be modified. Enclosed you will find a Notification of Administrative Appeal Options and Process fact sheet and Request for Appeal (RFA) form. If you choose to object to certain terms and conditions of the permit, you must follow the directions provided in Section 1, Part A and submit the completed RFA form to the letterhead address. In order for an RFA to be accepted by the Corps, the Corps must determine that it is complete, that it meets the criteria under 33 CFR Part 331.5, and that it has been received by the District office within 60 days of the date of the RFA. Should you decide to submit an RFA form, it must be received at the letterhead address by May 9, 2014. Instructions for Accepting Terms and Conditions and Finalizing Your Permit: It is not necessary to submit an RFA form to the District office, if you do not object to the decision in this letter. In this case, the permit must be signed by the applicant in the space provided on the signature page of the permit. In the case of corporations, Packet Pg. 326  -2- acceptance must be by an officer of that corporation authorized to sign on behalf of the corporation. The party responsible for assuring the work is done in accordance with the permit terms and conditions must sign the permit. Please type or print the name and title of the person signing below the signature and the date signed. SIGN (PAGE 9) AND RETURN THE ENTIRE PERMIT, INCLUDING ALL ATTACHMENTS, TO THE LETTERHEAD ADDRESS The permit will be signed by the District Engineer or his representative. The Corps will add the permit expiration date to the permit and return the permit to you. It is important to note that the permit is not valid until the District Engineer or his representative signs it. Please note U.S. Coast Guard regulations may require you as permittee to provide information for a Notice to the maritime community regarding your project. You should contact the Coast Guard Sector Mobile Waterways Management Branch (spw), 1500 15th Street, Mobile, AL 36615 or by phone at 251-441-5684 to determine if a Notice is necessary. Also any safety lights, signs and signals prescribed by the U.S. Coast Guard through their regulations or otherwise, must be installed and maintained at your expense as permittee on authorized facilities in navigable waters of the United States. To receive a U.S. Coast Guard Private Aids to Navigation marking determination, you are advised to contact the Eighth Coast Guard District (dpw), 500 Poydras St. Suite 1230, New Orleans, LA 70130, 504-671-2328 or via email to: D8oanPATON@uscg.mil prior to installation/construction of any fixed structures. For general information related to Private Aids to Navigation please visit the Eighth CG District web site at: http://www.uscg.mil/d8/waterways/PATON.Home.asp. Thank you for your cooperation with our permit program. The Corps’ Jacksonville District Regulatory Division is committed to improving service to our customers. We strive to perform our duty in a friendly and timely manner while working to preserve our environment. We invite you to complete our automated Customer Service Survey at http://corpsmapu.usace.army.mil/cm_apex/f?p=regulatory_survey. Please be aware this Internet address is case sensitive; and, you will need to enter it exactly as it appears above. Your input is appreciated – favorable or otherwise. If you have any questions concerning this application, you may contact Steve Andrews Jr. in writing at the letterhead address, by electronic mail at Packet Pg. 327 Packet Pg. 328 NOTIFICATION OF ADMINISTRATIVE APPEAL OPTIONS AND PROCESS AND REQUEST FOR APPEAL Applicant: Okaloosa County BOCC File Number: SAJ-2012-03222 Date: 10 March 2014 Attached is: See Section below X INITIAL PROFFERED PERMIT (Standard Permit or Letter of permission) A PROFFERED PERMIT (Standard Permit or Letter of permission) B PERMIT DENIAL C APPROVED JURISDICTIONAL DETERMINATION D PRELIMINARY JURISDICTIONAL DETERMINATION E SECTION I - The following identifies your rights and options regarding an administrative appeal of the above decision. Additional information may be found at http://www.usace.army.mil/CECW/Pages/reg_materials.aspx or Corps regulations at 33 CFR Part 331. A: INITIAL PROFFERED PERMIT: You may accept or object to the permit. • ACCEPT: If you received a Standard Permit, you may sign the permit document and return it to the district engineer for final authorization. If you received a Letter of Permission (LOP), you may accept the LOP and your work is authorized. Your signature on the Standard Permit or acceptance of the LOP means that you accept the permit in its entirety, and waive all rights to appeal the permit, including its terms and conditions, and approved jurisdictional determinations associated with the permit. • OBJECT: If you object to the permit (Standard or LOP) because of certain terms and conditions therein, you may request that the permit be modified accordingly. You must complete Section II of this form and return the form to the district engineer. Your objections must be received by the district engineer within 60 days of the date of this notice, or you will forfeit your right to appeal the permit in the future. Upon receipt of your letter, the district engineer will evaluate your objections and may: (a) modify the permit to address all of your concerns, (b) modify the permit to address some of your objections, or (c) not modify the permit having determined that the permit should be issued as previously written. After evaluating your objections, the district engineer will send you a proffered permit for your reconsideration, as indicated in Section B below. B: PROFFERED PERMIT: You may accept or appeal the permit • ACCEPT: If you received a Standard Permit, you may sign the permit document and return it to the district engineer for final authorization. If you received a Letter of Permission (LOP), you may accept the LOP and your work is authorized. Your signature on the Standard Permit or acceptance of the LOP means that you accept the permit in its entirety, and waive all rights to appeal the permit, including its terms and conditions, and approved jurisdictional determinations associated with the permit. • APPEAL: If you choose to decline the proffered permit (Standard or LOP) because of certain terms and conditions therein, you may appeal the declined permit under the Corps of Engineers Administrative Appeal Process by completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of this notice. C: PERMIT DENIAL: You may appeal the denial of a permit under the Corps of Engineers Administrative Appeal Process by completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of this notice. D: APPROVED JURISDICTIONAL DETERMINATION: You may accept or appeal the approved JD or provide new information. • ACCEPT: You do not need to notify the Corps to accept an approved JD. Failure to notify the Corps within 60 days of the date of this notice, means that you accept the approved JD in its entirety, and waive all rights to appeal the approved JD. • APPEAL: If you disagree with the approved JD, you may appeal the approved JD under the Corps of Engineers Administrative Appeal Process by completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of this notice. Packet Pg. 329 SECTION II - REQUEST FOR APPEAL or OBJECTIONS TO AN INITIAL PROFFERED PERMIT REASONS FOR APPEAL OR OBJECTIONS: (Describe your reasons for appealing the decision or your objections to an initial proffered permit in clear concise statements. You may attach additional information to this form to clarify where your reasons or objections are addressed in the administrative record.) ADDITIONAL INFORMATION: The appeal is limited to a review of the administrative record, the Corps memorandum for the record of the appeal conference or meeting, and any supplemental information that the review officer has determined is needed to clarify the administrative record. Neither the appellant nor the Corps may add new information or analyses to the record. However, you may provide additional information to clarify the location of information that is already in the administrative record. POINT OF CONTACT FOR QUESTIONS OR INFORMATION: If you have questions regarding this decision and/or the If you only have questions regarding the appeal process appeal process you may contact: you may also contact: for process: Project Manager as noted in letter Stuart Santos 904-232-2018 RIGHT OF ENTRY: Your signature below grants the right of entry to Corps of Engineers personnel, and any government consultants, to conduct investigations of the project site during the course of the appeal process. You will be provided a 15 day notice of any site investigation, and will have the opportunity to participate in all site investigations. Date: Telephone number: _______________________________ Signature of appellant or agent. Packet Pg. 330  DEPARTMENT OF THE ARMY PERMIT Permittee: Okaloosa County Board of County Commissioners 1804 Lewis Turner Boulevard, Suite 100 Ft. Walton Beach, Florida 32547 Permit No: SAJ-2012-03222 (SP-SWA) Issuing Office: U.S. Army Engineer District, Jacksonville NOTE: The term "you" and its derivatives, as used in this permit, means the permittee or any future transferee. The term "this office" refers to the appropriate district or division office of the Corps of Engineers having jurisdiction over the permitted activity or the appropriate official of that office acting under the authority of the commanding officer. You are authorized to perform work in accordance with the terms and conditions specified below. Project Description: The applicant proposes to establish an artificial reef area, which would be referred to as the “Fish Haven #16”. It would consist of a ¼ by ¼ mile deployment area, totaling 40 acres, which would provide enhanced habitat and recreational fishing and diving opportunities upon implementation of the project. Additionally, there would be a deployment buffer of 50 feet on each side. Material to be deployed would consist of clean concrete or rock and prefabricated structures that are a mixture of clean concrete and heavy gauge steel. The material to be deployed would have a maximum profile height of no more than 30 feet and would result in a minimum authorized depth of -38 feet at mean lower low water MLLW. The applicant would implement a monitoring plan. The work described above is to be completed in accordance with the three (3) pages of drawings affixed at the end of this permit instrument. Project Location: The project site is located in the Gulf of Mexico, 14.2 nautical miles southwest of Destin pass, 2.2 nautical miles north of the East-West Safety Fairway and 2.4 nautical miles south of Okaloosa Island off of Okaloosa County, Florida. Latitude & Longitude: NE Site Corner: Latitude: 30.3500° North Longitude: 86.7791° West NW Site Corner: Latitude: 30.3500° North Longitude: 86.7833° West SE Site Corner: Latitude: 30.3630° North Packet Pg. 331 PERMIT NUMBER: SAJ-2012-03222 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 2 of 11 Longitude: 86.7041° West SW Site Corner: Latitude: 30.3464° North Longitude: 86.7833° West Permit Conditions General Conditions: 1. The time limit for completing the work authorized ends on March 10, 2024. If you find that you need more time to complete the authorized activity, submit your request for a time extension to this office for consideration at least one month before the above date is reached. 2. You must maintain the activity authorized by this permit in good condition and in conformance with the terms and conditions of this permit. You are not relieved of this requirement if you abandon the permitted activity, although you may make a good faith transfer to a third party in compliance with General Condition 4 below. Should you wish to cease to maintain the authorized activity or should you desire to abandon it without a good faith transfer, you must obtain a modification of this permit from this office, which may require restoration of the area. 3. If you discover any previously unknown historic or archeological remains while accomplishing the activity authorized by this permit, you must immediately notify this office of what you have found. We will initiate the Federal and State coordination required to determine if the remains warrant a recovery effort or if the site is eligible for listing in the National Register of Historic Places. 4. If you sell the property associated with this permit, you must obtain the signature and the mailing address of the new owner in the space provided and forward a copy of the permit to this office to validate the transfer of this authorization. 5. If a conditioned water quality certification has been issued for your project, you must comply with the conditions specified in the certification as special conditions to this permit. For your convenience, a copy of the certification is attached if it contains such conditions. 6. You must allow representatives from this office to inspect the authorized activity at any time deemed necessary to ensure that it is being or has been accomplished in accordance with the terms and conditions of your permit. Packet Pg. 332 PERMIT NUMBER: SAJ-2012-03222 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 3 of 11 Special Conditions: 1. Reporting Addresses: The Permittee shall reference this permit number, SAJ- 2011-03485 (SP-SWA), on all correspondence. Unless specifically notified to the contrary, the Permittee shall use the following addresses for transmitting correspondence to the referenced agencies: (a) U.S. Army Corps of Engineers, Regulatory Division, Enforcement Section 41 North Jefferson Street, Suite 301 Pensacola, Florida 32502 The Permittee shall reference this permit number, SAJ-2010-03163 (SP-SWA), on all submittals. Or email at: CESAJ-ComplyDocs@usace.army.mil (b) National Oceanic and Atmospheric Administration (NOAA), Marine Chart Division, Office of Coast Survey, N/CS26, Sta. 7317 1315 East-West Highway Silver Springs, MD, 20910-3282 Or email at: ocs.ndb@noaa.gov. (c) Commander, U.S. Coast Guard (USCG) 8th Coast Guard District Hale Boggs Federal Building 500 Poydras Street New Orleans, LA 70130 (d) Florida Fish and Wildlife Conservation Commission (FWC), Artificial Reef Program, 620 S. Meridian Street, Box 4B2 Tallahassee, FL 32399. Or email at: artificialreefdeployments@MyFWC.com 2. Initial Agency Notification: The Permittee shall provide to the Corps, NOAA and USCG written notification of the planned deployment start date at least two weeks prior to the initial deployment on the authorized artificial reef site. 3. Protection of Existing Resources: The Permittee shall not deploy artificial reef materials until an assessment of the bottom conditions have been accomplished by diver, submersible video camera, fathometer, depth/bottom sounder (e.g. “fish finder”), or side-scan sonar. The inspection of the deployment area may occur at the time of Packet Pg. 333 PERMIT NUMBER: SAJ-2012-03222 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 4 of 11 deployment, but no more than one year prior to deployment. The Permittee shall maintain a deployment buffer of at least 200 feet from any submerged beds of sea grasses, coral reefs, live bottom, areas supporting growth of sponges, sea fans, soft corals, and other sessile macroinvertebrates generally associated with rock outcrops, oyster reefs, scallop beds, clam beds, or areas where there are unique or unusual concentrations of bottom-dwelling marine organisms. If, during the inspection, evidence is observed of cultural/archaeological resources, such as sunken vessels, ballast, historic refuse piles, or careenage areas the Corps will be notified by the Permittee and the above referenced deployment buffer will be implemented. The Permittee shall maintain a record of the information gained during the inspection such that it can be provided upon request to the Corps. 4. Pre-Deployment Notification: No less than 14 days prior to deployment of material on an artificial reef, the Permittee shall transmit by electronic mail (“email”) a complete and signed “Florida Artificial Reef Materials Cargo Manifest and Pre-Deployment Notification” form, attached to this permit, to the Corps and FWC to allow inspection of the proposed reef materials as deemed necessary by the agencies. Inspection is allowable at the staging area. By signing the Pre-Deployment Notification the Permittee certifies that all materials are free from asphalt, petroleum, other hydrocarbons and toxic residues. The Permittee shall not deploy material if notified by the Corps or FWC that the material is questionable. The material needs to be evaluated before it is released for deployment. Any material that is deemed unacceptable for reef material will be disposed in an approved upland disposal site. Deployment of the material shall not occur until after the end of the 14-day inspection period. The Permittee shall ensure both a copy of the Corps permit and the signed “Florida Artificial Reef Materials Cargo Manifest and Pre-Deployment Notification Form” are maintained aboard the deployment vessel at all times during loading, transit, and deployment. 5. Post-Deployment Placement Report/As-Built Drawing: No less than 30 days after deployment at the reef site, the Permittee shall transmit by email to the Corps, FWC, and NOAA a complete and signed “Florida Artificial Reef Materials Placement Report and Post-Deployment Notification” form attached to this permit. Please note, the Corps requires the latitude and longitude to be accurate within 5 meters horizontal distance on the post-deployment report. Attach to the report, an as-built drawing that contains the approximate deployment configurations and the height of the material after placement. Depth shall be verified utilizing fathometer, depth sounder, or similar device accurate to within 1 meter. Also, include information on the condition of the material at the time of deployment. The report and drawing shall be limited to a few pages per deployment. Representative photographs and/or video, if available, are encouraged to be submitted. Packet Pg. 334 PERMIT NUMBER: SAJ-2012-03222 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 5 of 11 6. Ownership/Maintenance/Liability: By signing this permit, the Permittee certifies and acknowledges ownership of all artificial reef materials deployed on the reef, accepts responsibility for maintenance of the artificial reef, and possesses the ability to assume liability for all damages that may arise with respect to the artificial reef. 7. Assurance of Navigation and Maintenance: The Permittee understands and agrees that, if future operations by the United States require the removal, relocation, or other alteration, of the structures or work herein authorized, or if in the opinion of the Secretary of the Army or his authorized representative, said structure or work shall cause unreasonable obstruction to the free navigation of the navigable waters, the Permittee will be required, upon due notice from the Corps of Engineers, to remove, relocate, or alter the structural work or obstructions caused thereby, without expense to the United States. No claim shall be made against the United States on account of any such removal or alteration. 8. Sea Turtle, Smalltooth Sawfish and Sturgeon Conditions: The Permittee shall comply with the attached National Marine Fisheries Service’s “Sea Turtle and Smalltooth Sawfish Construction Conditions”, which also applies to sturgeon. 9. Manatee Conditions: The Permittee shall comply with the attached “Standard Manatee Conditions for In-Water Work – 2011.” 10. Protected Species Guidance: The Permittee shall comply with the attached “Vessel Strike Avoidance Measures and Injured or Dead Protected Species Reporting” guidance for marine turtles and marine mammals. 11. Self-Certification: Within 60 days of completion of the authorized work or at the expiration of the construction authorization of this permit, whichever occurs first, the Permittee shall complete the attached “Self-Certification Statement of Compliance” form and submit to the Corps. In the event that the completed work deviates, in any manner, from the authorized work, the Permittee shall describe, on the Self-Certification Form, the deviations between the work authorized by the permit and the work as constructed. Please note that the description of any deviations on the Self-Certification Form does not constitute approval of any deviations by the Corps. 12. Cultural Resources/Historic Properties: a. No structure or work shall adversely affect impact or disturb properties listed in the National Register of Historic Places (NRHP) or those eligible for inclusion in the NRHP. Packet Pg. 335 PERMIT NUMBER: SAJ-2012-03222 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 6 of 11 b. If during the ground disturbing activities and construction work within the permit area, there are archaeological/cultural materials encountered which were not the subject of a previous cultural resources assessment survey (and which shall include, but not be limited to: pottery, modified shell, flora, fauna, human remains, ceramics, stone tools or metal implements, dugout canoes, evidence of structures or any other physical remains that could be associated with Native American cultures or early colonial or American settlement), the Permittee shall immediately stop all work in the vicinity and notify the Corps. The Corps shall then notify the Florida State Historic Preservation Officer (SHPO) and the appropriate Tribal Historic Preservation Officer(s) (THPO(s)) to assess the significance of the discovery and devise appropriate actions. c. A cultural resources assessment may be required of the permit area, if deemed necessary by the SHPO, THPO(s), or Corps, in accordance with 36 CFR 800 or 33 CFR 325, Appendix C (5). Based, on the circumstances of the discovery, equity to all parties, and considerations of the public interest, the Corps may modify, suspend or revoke the permit in accordance with 33 CFR Part 325.7. Such activity shall not resume on non- federal lands without written authorization from the SHPO and the Corps. d. In the unlikely event that unmarked human remains are identified on non-federal lands, they will be treated in accordance with Section 872.05 Florida Statutes. All work in the vicinity shall immediately cease and the Permittee shall immediately notify the medical examiner, Corps, and State Archeologist. The Corps shall then notify the appropriate SHPO and THPO(s). Based, on the circumstances of the discovery, equity to all parties, and considerations of the public interest, the Corps may modify, suspend or revoke the permit in accordance with 33 CFR Part 325.7. Such activity shall not resume without written authorization from the State Archeologist, SHPO and the Corps. e. In the unlikely event that human remains are encountered on federal or tribal lands, or in situations where Archaeological Resources Protection Act of 1979, or Native American Graves Protection Repatriation Act of 1990 applies, all work in the vicinity shall immediately cease and the Permittee immediately notify the Corps. The Corps shall then notify the appropriate THPO(s) and SHPO. Based, on the circumstances of the discovery, equity to all parties, and considerations of the public interest, the Corps may modify, suspend or revoke the permit in accordance with 33 CFR Part 325.7. After such notification, project activities on federal lands shall not resume without written authorization from the Corps, and/or appropriate THPO(s), SHPO, and federal manager. After such notification, project activities on tribal lands shall not resume without written authorization from the appropriate THPO(s) and the Corps. Further Information: Packet Pg. 336 PERMIT NUMBER: SAJ-2012-03222 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 7 of 11 1. Congressional Authorities: You have been authorized to undertake the activity described above pursuant to: (X) Section 10 of the Rivers and Harbors Act of 1899 (33 U.S.C. 403). (X) Section 404 of the Clean Water Act (33 U.S.C. 1344). ( ) Section 103 of the Marine Protection, Research and Sanctuaries Act of 1972 (33 U.S.C. 1413). 2. Limits of this authorization. a. This permit does not obviate the need to obtain other Federal, State, or local authorizations required by law. b. This permit does not grant any property rights or exclusive privileges. c. This permit does not authorize any injury to the property or rights of others. d. This permit does not authorize interference with any existing or proposed Federal projects. 3. Limits of Federal Liability. In issuing this permit, the Federal Government does not assume any liability for the following: a. Damages to the permitted project or uses thereof as a result of other permitted or unpermitted activities or from natural causes. b. Damages to the permitted project or uses thereof as a result of current or future activities undertaken by or on behalf of the United States in the public interest. c. Damages to persons, property, or to other permitted or unpermitted activities or structures caused by the activity authorized by this permit. d. Design or construction deficiencies associated with the permitted work. e. Damage claims associated with any future modification, suspension, or revocation of this permit. 4. Reliance on Applicant's Data: The determination of this office that issuance of this permit is not contrary to the public interest was made in reliance on the information you provided. Packet Pg. 337 PERMIT NUMBER: SAJ-2012-03222 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 8 of 11 5. Reevaluation of Permit Decision: This office may reevaluate its decision on this permit at any time the circumstances warrant. Circumstances that could require a reevaluation include, but are not limited to, the following: a. You fail to comply with the terms and conditions of this permit. b. The information provided by you in support of your permit application proves to have been false, incomplete, or inaccurate (see 4 above). c. Significant new information surfaces which this office did not consider in reaching the original public interest decision. Such a reevaluation may result in a determination that it is appropriate to use the suspension, modification, and revocation procedures contained in 33 CFR 325.7 or enforcement procedures such as those contained in 33 CFR 326.4 and 326.5. The referenced enforcement procedures provide for the issuance of an administrative order requiring you comply with the terms and conditions of your permit and for the initiation of legal action where appropriate. You will be required to pay for any corrective measures ordered by this office, and if you fail to comply with such directive, this office may in certain situations (such as those specified in 33 CFR 209.170) accomplish the corrective measures by contract or otherwise and bill you for the cost. 6. Extensions: General Condition 1 establishes a time limit for the completion of the activity authorized by this permit. Unless there are circumstances requiring either a prompt completion of the authorized activity or a reevaluation of the public interest decision, the Corps will normally give favorable consideration to a request for an extension of this time limit. Packet Pg. 338 PERMIT NUMBER: SAJ-2012-03222 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 9 of 11 Your signature below, as permittee, indicates that you accept and agree to comply with the terms and conditions of this permit. _______________________________________ ____________________ (PERMITTEE) (DATE) _______________________________________ (PERMITTEE NAME-PRINTED) This permit becomes effective when the Federal official, designated to act for the Secretary of the Army, has signed below. _______________________________________ ____________________ (DISTRICT ENGINEER) (DATE) Alan M. Dodd, Colonel, U.S. Army District Commander Packet Pg. 339 PERMIT NUMBER: SAJ-2012-03222 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 10 of 11 When the structures or work authorized by this permit are still in existence at the time the property is transferred, the terms and conditions of this permit will continue to be binding on the new owner(s) of the property. To validate the transfer of this permit and the associated liabilities associated with compliance with its terms and conditions, have the transferee sign and date below. _______________________________________ ____________________ (TRANSFEREE-SIGNATURE) (DATE) _______________________________________ (NAME-PRINTED) _______________________________________ (ADDRESS) ______________________________________________________ (CITY, STATE, AND ZIP CODE) Packet Pg. 340 PERMIT NUMBER: SAJ-2012-03222 (SP-SWA) PERMITTEE: Okaloosa County Board of County Commissioners PAGE 11 of 11 Attachments to Department of the Army Permit Number SAJ-2012-03222 1. PERMIT DRAWINGS: Three (3) pages, dated 24 February 2014. 2. WATER QUALITY CERTIFICATION: Specific Conditions of the water quality permit/certification in accordance with General Condition number 5 on page 3 of this DA permit. Six (6) pages. 3. SEA TURTLE, SAWFISH AND STURGEON CONDITIONS: One (1) page. 4. MANATEE CONDITIONS: One (1) page. 5. VESSEL STRIKE AVOIDANCE MEASURES: Two (2) pages. 6. FLORIDA ARTIFICIAL REEF MATERIALS CARGO MANIFEST AND PRE- DEPLOYMENT NOTIFICATION FORM: 7. FLORIDA ARTIFICIAL REEF MATERIALS PLACEMENT REPORT AND POST- DEPLOYMENT NOTIFICATION FORM: 8. SELF-CERTIFICATION FORM: One (1) page. Packet Pg. 341 Packet Pg. 342 Packet Pg. 343 Packet Pg. 344  UNITED STATES DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration NATIONAL MARINE FISHERIES SERVICE Southeast Regional Office 263 13th Avenue South St. Petersburg, FL 33701 SEA TURTLE AND SMALLTOOTH SAWFISH CONSTRUCTION CONDITIONS The permittee shall comply with the following protected species construction conditions: a. The permittee shall instruct all personnel associated with the project of the potential presence of these species and the need to avoid collisions with sea turtles and smalltooth sawfish. All construction personnel are responsible for observing water-related activities for the presence of these species. b. The permittee shall advise all construction personnel that there are civil and criminal penalties for harming, harassing, or killing sea turtles or smalltooth sawfish, which are protected under the Endangered Species Act of 1973. c. Siltation barriers shall be made of material in which a sea turtle or smalltooth sawfish cannot become entangled, be properly secured, and be regularly monitored to avoid protected species entrapment. Barriers may not block sea turtle or smalltooth sawfish entry to or exit from designated critical habitat without prior agreement from the National Marine Fisheries Service’s Protected Resources Division, St. Petersburg, Florida. d. All vessels associated with the construction project shall operate at “no wake/idle” speeds at all times while in the construction area and while in water depths where the draft of the vessel provides less than a four-foot clearance from the bottom. All vessels will preferentially follow deep-water routes (e.g., marked channels) whenever possible. e. If a sea turtle or smalltooth sawfish is seen within 100 yards of the active daily construction/dredging operation or vessel movement, all appropriate precautions shall be implemented to ensure its protection. These precautions shall include cessation of operation of any moving equipment closer than 50 feet of a sea turtle or smalltooth sawfish. Operation of any mechanical construction equipment shall cease immediately if a sea turtle or smalltooth sawfish is seen within a 50-ft radius of the equipment. Activities may not resume until the protected species has departed the project area of its own volition. f. Any collision with and/or injury to a sea turtle or smalltooth sawfish shall be reported immediately to the National Marine Fisheries Service’s Protected Resources Division (727-824- 5312) and the local authorized sea turtle stranding/rescue organization. g. Any special construction conditions, required of your specific project, outside these general conditions, if applicable, will be addressed in the primary consultation. Revised: March 23, 2006 O:\forms\Sea Turtle and Smalltooth Sawfish Construction Conditions.doc Packet Pg. 345  STANDARD MANATEE CONDITIONS FOR IN-WATER WORK 2011 The permittee shall comply with the following conditions intended to protect manatees from direct project effects: a. All personnel associated with the project shall be instructed about the presence of manatees and manatee speed zones, and the need to avoid collisions with and injury to manatees. The permittee shall advise all construction personnel that there are civil and criminal penalties for harming, harassing, or killing manatees which are protected under the Marine Mammal Protection Act, the Endangered Species Act, and the Florida Manatee Sanctuary Act. b. All vessels associated with the construction project shall operate at "Idle Speed/No Wake” at all times while in the immediate area and while in water where the draft of the vessel provides less than a four-foot clearance from the bottom. All vessels will follow routes of deep water whenever possible. c. Siltation or turbidity barriers shall be made of material in which manatees cannot become entangled, shall be properly secured, and shall be regularly monitored to avoid manatee entanglement or entrapment. Barriers must not impede manatee movement. d. All on-site project personnel are responsible for observing water-related activities for the presence of manatee(s). All in-water operations, including vessels, must be shutdown if a manatee(s) comes within 50 feet of the operation. Activities will not resume until the manatee(s) has moved beyond the 50-foot radius of the project operation, or until 30 minutes elapses if the manatee(s) has not reappeared within 50 feet of the operation. Animals must not be herded away or harassed into leaving. e. Any collision with or injury to a manatee shall be reported immediately to the Florida Fish and Wildlife Conservation Commission (FWC) Hotline at 1-888-404-3922. Collision and/or injury should also be reported to the U.S. Fish and Wildlife Service in Jacksonville (1-904- 731-3336) for north Florida or Vero Beach (1-772-562-3909) for south Florida, and to FWC at ImperiledSpecies@myFWC.com Packet Pg. 346  Vessel Strike Avoidance Measures and Reporting for Mariners NOAA Fisheries Service, Southeast Region Background The National Marine Fisheries Service (NMFS) has determined that collisions with vessels can injure or kill protected species (e.g., endangered and threatened species, and marine mammals). The following standard measures should be implemented to reduce the risk associated with vessel strikes or disturbance of these protected species to discountable levels. NMFS should be contacted to identify any additional conservation and recovery issues of concern, and to assist in the development of measures that may be necessary. Protected Species Identification Training Vessel crews should use an Atlantic and Gulf of Mexico reference guide that helps identify protected species that might be encountered in U.S. waters of the Atlantic Ocean, including the Caribbean Sea, and Gulf of Mexico. Additional training should be provided regarding information and resources available regarding federal laws and regulations for protected species, ship strike information, critical habitat, migratory routes and seasonal abundance, and recent sightings of protected species. Vessel Strike Avoidance In order to avoid causing injury or death to marine mammals and sea turtles the following measures should be taken when consistent with safe navigation: 1. Vessel operators and crews should maintain a vigilant watch for marine mammals and sea turtles to avoid striking sighted protected species. 2. When whales are sighted, maintain a distance of 100 yards or greater between the whale and the vessel. 3. When sea turtles or small cetaceans are sighted, attempt to maintain a distance of 50 yards or greater between the animal and the vessel whenever possible. 4. When small cetaceans are sighted while a vessel is underway (e.g., bow-riding), attempt to remain parallel to the animal’s course. Avoid excessive speed or abrupt changes in direction until the cetacean has left the area. 5. Reduce vessel speed to 10 knots or less when mother/calf pairs, groups, or large assemblages of cetaceans are observed near an underway vessel, when safety permits. A single cetacean at the surface may indicate the presence of submerged animals in the vicinity; therefore, prudent precautionary measures should always be exercised. The vessel should attempt to route around the animals, maintaining a minimum distance of 100 yards whenever possible. NMFS Southeast Region Vessel Strike Avoidance Measures and Reporting for Mariners; revised February 2008. Packet Pg. 347  6. Whales may surface in unpredictable locations or approach slowly moving vessels. When an animal is sighted in the vessel’s path or in close proximity to a moving vessel and when safety permits, reduce speed and shift the engine to neutral. Do not engage the engines until the animals are clear of the area. Additional Requirements for the North Atlantic Right Whale 1. If a sighted whale is believed to be a North Atlantic right whale, federal regulation requires a minimum distance of 500 yards be maintained from the animal (50 CFR 224.103 (c)). 2. Vessels entering North Atlantic right whale critical habitat are required to report into the Mandatory Ship Reporting System. 3. Mariners should check with various communication media for general information regarding avoiding ship strikes and specific information regarding North Atlantic right whale sighting locations. These include NOAA weather radio, U.S. Coast Guard NAVTEX broadcasts, and Notices to Mariners. Commercial mariners calling on United States ports should view the most recent version of the NOAA/USCG produced training CD entitled “A Prudent Mariner’s Guide to Right Whale Protection” (contact the NMFS Southeast Region, Protected Resources Division for more information regarding the CD). 4. Injured, dead, or entangled right whales should be immediately reported to the U.S. Coast Guard via VHF Channel 16. Injured or Dead Protected Species Reporting Vessel crews should report sightings of any injured or dead protected species immediately, regardless of whether the injury or death is caused by your vessel. Report marine mammals to the Southeast U.S. Stranding Hotline: 877-433-8299 Report sea turtles to the NMFS Southeast Regional Office: 727-824-5312 If the injury or death of a marine mammal was caused by a collision with your vessel, responsible parties should remain available to assist the respective salvage and stranding network as needed. NMFS’ Southeast Regional Office should be immediately notified of the strike by email (takereport.nmfsser@noaa.gov) using the attached vessel strike reporting form. For additional information, please contact the Protected Resources Division at: NOAA Fisheries Service Southeast Regional Office th 263 13 Avenue South St. Petersburg, FL 33701 Tel: (727) 824-5312 Visit us on the web at http://sero.nmfs.noaa.gov NMFS Southeast Region Vessel Strike Avoidance Measures and Reporting for Mariners; revised February 2008. Packet Pg. 348  FLORIDA ARTIFICIAL REEF MATERIALS CARGO MANIFEST AND PRE-DEPLOYMENT NOTIFICATION (Issued pursuant to Ch. 379.249(6)(b), Florida Statutes) I, ______________________________________________ ______________________ ________________ Name of individual managing reef deployment (print) Signature Date whose address is __________________________________________________________, (____) _____ - _____ Street City State Zip Code Phone declare that I am staging and transporting the following artificial reef construction materials allowable pursuant to the U.S. Army Corps of Engineers Artificial Reef Permit referenced below and agree to comply with all permit conditions in the permit listed below and attached to this manifest. I understand this artificial reef site is open to public access and this authorization does not provide any rights or exclusive private use over those rights or uses to the general public. The address of the land based reef materials staging area is: ______________________________________ Transporting Vessel Registration Number: _____________________________________________________ Vessel Owner: _____________________________ Vessel Operator: ______________________________ The following items are to be deployed as reef material (attach additional sheets when more than four locations): MATERIAL TAG Descriptions of material ID NUMBER(S), GPS Coordinates if applicable (number of pieces, type, dimension, weight) degrees, minutes, decimal minutes (DD°MM.mmm’) Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ Lat:_____°___.__ __ __’ Lon:____°___.__ __ __’ A copy of the below referenced permit(s) and all associated conditions is attached to this manifest and shall be carried on board the vessel during loading, storing, or transporting artificial reef material. -- OFFICIAL USE ONLY -- (TO BE COMPLETED BY PERMIT HOLDER, OR AUTHORIZED ARTIFICIAL REEF INSPECTOR) Permit Holder: ______________________________________________________________________________ Name of U.S. Department of the Army, Corps of Engineers (ACOE) Permit Holder ACOE permit number ________________________, permitted site name _______________________________ issued on _________________________________ and has an expiration date of ________________________. Local tracking number (if applicable): __________________________________________________________ _________________________________________________________ (Name of FWC authorized Artificial Reef Inspector, printed) _________________________________________________________ ________________ (Signature) Packet (Date) Pg. 349 Revised 4/23/07  EXPLANATION SHEET FOR THE ARTIFICIAL REEF MATERIALS CARGO MANIFEST FORM The attached artificial reef cargo manifest has been developed in compliance with subsection 379.249(6)(b), Florida Statutes, which states that: “It is unlawful for any person to: store, possess or transport on or across state waters any materials reasonably suited for artificial reef construction and stored in such a manner providing ready access for use and placement as an artificial reef, unless a valid cargo manifest issued by the commission or a commission-certified inspector is onboard the transporting vessel. The manifest will serve as authorization to use a valid permitted site or land-based staging area, which will validate that the type of artificial reef construction material being transported is permissible for use at the permitted site, and will describe and quantify the artificial reef material being transported. The manifest will also include the latitude and longitude coordinates of the proposed deployment location, the valid permit number, and the copy off the permit conditions for the permitted site. The manifest must be available for inspection by any authorized law enforcement officer or commission employee.” This requirement for a cargo manifest became part of the statutory revision of the artificial reef program statute Section 379.249 Florida Statutes (F.S.), modified during the 2000 State of Florida Legislature. The statutory language allows a “commission certified inspector” to complete and approve the artificial reef materials cargo manifest. Therefore, we are providing the attached cargo manifest form to all local coastal government artificial reef coordinators and eligible non-profit corporations who may physically construct artificial reefs with the approval of the permit holders. INSTRUCTIONS A separate cargo manifest form is to be completed for each load to be transported offshore (i.e., one manifest per voyage). The manifest is to list all, and only, the reef materials onboard. The top of the form is to be filled out by the reef builder with his/her contact information and the information about the proposed reef materials to be deployed written into the boxes. If several materials are identical but have different tag numbers, please write “SAME” in the box for the other materials. Also put “SAME” under additional coordinates if all materials are going to the same deployment site. The shaded portion of the form at the bottom is to be filled out by the materials inspector. The cargo manifest must be completed by an entity representing the holder of the applicable artificial reef permit to assure that all materials meet the requirements of the permit. Completion of the artificial reef materials cargo manifest is required for all construction activities. The requirement to complete this document is not intended to be an undue burden on entities wishing to legally construct artificial reefs within permitted sites, but is a tool to assist law enforcement personnel in preventing the illegal construction of artificial reefs without the knowledge of the permit holder or in areas outside of legally permitted sites. It is intended to allow law enforcement staff to determine whether or not a load of materials is legal under the permit conditions. Without a properly completed Cargo Manifest Form on board, reef builders will be returned to port pursuant to Chapter 379.249 (6) (b). It is not necessary to send a copy of the Cargo Manifest Form to the FWC artificial reef section in Tallahassee. Documentation of the reef building activity should be maintained by the entity issuing the manifest in the event of any FWC inquiries. Reminder: the placement of all public artificial reefs in state or adjacent federal waters requires the submittal of a Materials Placement Report to the FWC artificial reef program within 30 days of public reef deployment in accordance with s. 379.249 F.S. Packet Pg. 350  FLORIDA ARTIFICIAL REEF MATERIALS PLACEMENT REPORT AND POST-DEPLOYMENT NOTIFICATION To Be Completed For Each Deployment Location or Date of Deployment County or Municipality:_____________________________________ Date of Placement:_________________________ Grant No. FWC - ________________________________ U.S. Army Corps (if applicable) Permit No.: _______________________________ Total project cost: $___________ (Funding Source(s) and Amount(s): FWC $____________ Local $ __________ Other $________) Name of Permitted Location Name Reef Site: ________________________________ for This Deployment:________________________ ° Latitude:_____ ______.___ ___ ___’ North Longitude:______ °_______.___ ___ ___’ West Degrees minutes decimal minutes Degrees minutes decimal minutes GPS Brand:__________________ GPS Model number:___________ Geographical Location: ______________ at __________degrees from ___________________________________ (nautical miles) (bearing) (reference inlet) Water Depth:________ feet (minus) Max. Material Height: ________feet (equals) Actual Vertical Clearance: ______feet TYPE AND AMOUNT OF MATERIAL DEPLOYED AT THE LOCATION DESCRIBED ABOVE: (ATTACH A PHOTOGRAPH OF THE MATERIAL ON THE BARGE IMMEDIATELY PRIOR TO DEPLOYMENT) Primary Type of Material:____________________________________________ Number of Pieces:__________ Dimensions:________________________________________________________________________________ Secondary Type of Material:_________________________________________ Number of Pieces:__________ Dimensions:________________________________________________________________________________ How was tonnage calculated?(Check all that apply, attach additional sheets if necessary): Before & after barge draft calculation Known weight of individual pieces TOTAL TONNAGE FOR THIS DEPLOYMENT: _______________________ Trucking receipts I DO HEREBY CERTIFY THAT THE ABOVE INFORMATION IS TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE Observer’s Name: _________________________________ Title: _________________________________ (PLEASE PRINT) (PLEASE PRINT) Observer’s Signature: _______________________________ Date: __________________________________ Observer’s Remarks: __________________________________________________________________________ ___________________________________________________________________________________________ I DO HEREBY CERTIFY THAT THE ABOVE INFORMATION COMPLIES WITH THE ABOVE REFERENCED PERMIT CONDITIONS Permittee’s Staff Name: _________________________________ Title: __________________________________ (PLEASE PRINT) (PLEASE PRINT) Permittee’s Staff Signature: ______________________________ Date: _________________________________ Local Tracking number ______________ FWC Tracking number _______________ Entered by _________ on _________ Rev. 4/23/2007 FWC initials date Packet Pg. 351  SELF-CERTIFICATION STATEMENT OF COMPLIANCE Permit Number: SAJ-2012-03222 (SP-SWA) Permittee’s Name & Address (please print or type): __________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Telephone Number: ____________________________________________________________________ Location of the Work: __________________________________________________________________ _____________________________________________________________________________________ Date Work Started: __________________________ Date Work Completed: ______________________ Description of the Work (e.g. bank stabilization, residential or commercial filling, docks, dredging, etc.): _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Acreage or Square Feet of Impacts to Waters of the United States: _______________________________ Describe Mitigation completed (if applicable): ______________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ Describe any Deviations from the Permit (attach drawing(s) depicting the deviations): _____________________________________________________________________________________ _____________________________________________________________________________________ I certify that all work, and mitigation (if applicable) was done in accordance with the limitations and conditions as described in the permit. Any deviations as described above are depicted on the attached drawing(s). ______________________________ Signature of Permittee ______________________________ Date Packet Pg. 352  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: John Hofstad SUBJECT: Special Event Permit - Easter Sunrise Service 2014 DEPARTMENT: Public Works BCC DISTRICT: Two STATEMENT OF ISSUE: The Lutheran Churches of the Emerald Coast are requesting the use of John Beasley Park for Easter Sunrise Service. BACKGROUND: County Ordinance #13-07 (regulation of county recreational areas, including parks and beaches) addresses Special Events at county parks, beaches or recreational areas within Okaloosa County. A request has been received from the Good Shepherd Lutheran Church on behalf of The Lutheran Churches of the Emerald Coast area for use of John Beasley Park for its 40th annual Easter Sunrise Service on the beach. The service will be held on Sunday, April 20, 2014 at 6:00 a.m. Sponsors are requesting access at 4:30 a.m., worshipers should be clear by 7:00 a.m. and clean up complete by 7:30 a.m. The use of electrical power for a sound system will be provided at John Beasley Park. They have requested a waiver of any Special Event Permit fees. They have been granted a waiver each year since the permitting process began. OPTIONS: Approve / Disapprove RECOMMENDATIONS: Approve the request for a Special Event Permit and consideration of the Board for the waiver of permit fees. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 353 Packet Pg. 354 Packet Pg. 355  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: John Hofstad SUBJECT: Task Order TO46 Amendment - SCS Engineers DEPARTMENT: Public Works BCC DISTRICT: STATEMENT OF ISSUE: A Task Order Amendment (attached) is required to reflect a reduction in the cost of SCS Engineers proposed work in Board approved Task Order TO46 (contract C06-1353-PW). BACKGROUND: During routine review of an SCS Invoice, a discrepancy in between the invoice hourly rates and the proposed TO46 manpower and fee estimate was indicated. To rectify the discrepancy, the total TO amount would need to be reduced from $100,100 to $91,300. SCS Engineers invoices expensed to this Task Order to date have reflected the appropriate hourly rates. OPTIONS: Approve/Disapprove RECOMMENDATIONS: Staff recommends the Board authorize the Chairman to sign the Task Order Amendment. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 356 Packet Pg. 357 Packet Pg. 358 Packet Pg. 359 Packet Pg. 360 Packet Pg. 361 Packet Pg. 362 Packet Pg. 363  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: John Hofstad SUBJECT: Special Event Permit - Easter Egg Hunt DEPARTMENT: Public Works BCC DISTRICT: Two STATEMENT OF ISSUE: Impact Life Church is requesting the use of Ross Marler Park for an Easter Egg Hunt. BACKGROUND: County Ordinance #13-07 (regulation of county recreational areas, including parks and beaches) addresses Special Events at county parks, beaches or recreational areas within Okaloosa County. A request has been received from Impact Life Church for use of Ross Marler Park for an Easter Egg Hunt. The event will be held on Saturday, April 19, 2014 from 11:00 am to 12:15 pm. OPTIONS: Approve / Disapprove RECOMMENDATIONS: Approve the request for a Special Event Permit as submitted. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 364 Packet Pg. 365 Packet Pg. 366  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: John Hofstad SUBJECT: Special Event Permit - Davis / Upshaw Wedding DEPARTMENT: Public Works BCC DISTRICT: 2 STATEMENT OF ISSUE: Tammy Davis is requesting the use of County public beach at John Beasley Park for a large wedding. BACKGROUND: County Ordinance #13-07 (regulation of county recreational areas, including parks and beaches) addresses Special Events at county parks, beaches or recreational areas within Okaloosa County. A request has been received from Tammy Davis for use of County public beach at John Beasley Park for a wedding with approximately 120 people in attendance. The wedding is to be held on Saturday, May 10, 2014 from 4:00 p.m. to 6:00 p.m. This request has been reviewed by Public Works, Public Safety and the Sheriff's Office. OPTIONS: Approve / Disapprove RECOMMENDATIONS: Approve the request for a Special Event Permit to utilize County public beach at John Beasley Park for the Davis / Upshaw wedding, as submitted. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 367 Packet Pg. 368  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: John Hofstad SUBJECT: Contract Renewal with the Florida Department of Corrections (PW) DEPARTMENT: Public Works BCC DISTRICT: All Statement of Issue: Request approval of the work squad contract to have the Department of Corrections (DOC) provide two officers to supervise the county inmate work crew for the next year. The contract’s effective date is August 22, 2014. Background: Public Works has a budget line item approved to provide funds to the DOC so that they are able to provide 2 supervisors to monitor the activities of an inmate work crews who assists Public Works in road and stormwater tasks throughout the county under this contract. The annual cost for these crews is $114,994 ($57,497 per crew). This contract reflects a slight decrease in annual expense versus the previous contract ($1,014). This contract replaces contract number WS758 and will now be identified as WS909. Options: Approve/disapprove Recommendations: Approve contract renewal #WS909 with the Florida Department of Corrections and authorize Chairman to sign contract. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 369  RECEIVED MAR 05 2014 CONTRACT & LEASE INTERNAL COORDINATION SHEET Contract/Lease Number: Tracking Number: Contractor/Lessee Name: Fl— T0c_ Grant Funded: YES NOY Purpose iz_..6ter-t__ Date/Term\.s\% 14_ _ ' (2l5 Li)/)'Q I 1. ''GREATER THAN $50,000 Amount: ' I)ti I q 00 2. GREATER THAN $25,000 Department: 11 $25,000 OR LESS Dept. Monitor Nam1\56c Document has been reviewed and includes any attachments or exhibits. Purchasing Review P ment Pu or Designee Date: £ J) ! Risk Management Review Approved j r,~~ Date: 3&IIZI Risk Manager or designee / County Attorney Review proved as written: L( Date: torney Following Okaloosa County approval: I Contracts & Grants I Document has been received: Date: Contracts & Grants Manager Packet Pg. 370  CONTRACT # WS909 CONTRACT BETWEEN THE FLORIDA DEPARTMENT OF CORRECTIONS AND OKALOOSA COUNTY, BOARD OF COUNTY COMMISSIONERS This Contract is between the Florida Department of Corrections (“Department”) and Okaloosa County, Board of County Commissioners ("Agency") which are the parties hereto. WITNESSETH WHEREAS, Section 944.10(7) and Section 946.40, Florida Statutes and Rules 33-601.201 and 33-601.202, Florida Administrative Code, provide for the use of inmate labor in work programs; WHEREAS, inmate labor will be used for the purposes of providing services and performing work under the supervision of the Department’s staff; WHEREAS Okaloosa County, Board of County Commissioners is a qualified and willing participant with the Department to contract for an inmate work squad(s); and WHEREAS, the parties hereto find it to be in their best interests to enter into this Contract, and in recognition of the mutual benefits and considerations set forth, the parties hereto covenant and agree as follows: I. CONTRACT TERM/RENEWAL A. This Contract shall begin on August 22, 2014 or the last date of signature by all parties, whichever is later. This Contract shall end at midnight one (1) year(s) from the last date of signature by all parties or August 21, 2015, whichever is later. In the event this Contract is signed by the parties on different dates, the latter date shall control. B. Contract Renewal This Contract may be renewed, for one (1) additional one (1) year period after the initial Contract period upon the same terms and conditions contained herein. The Contract renewal is at the Agency’s initiative with the concurrence of the Department. The decision to exercise the option to renew should be made no later than sixty (60) days prior to the Contract expiration. Page 1 of 12 Master Document Revised 03/2013 Packet Pg. 371  CONTRACT # WS909 II. SCOPE OF CONTRACT A. Administrative Functions 1. Each party shall cooperate with the other in any litigation or claims against the other party as a result of unlawful acts committed by an inmate(s) performing services under this Contract between the parties. 2. Each party will retain responsibility for its personnel, and its fiscal and general administrative services to support this Contract. 3. Through their designated representatives, the parties shall collaborate on the development of policies and operational procedures for the effective management and operation of this Contract. B. Description of Services 1. Responsibilities of the Department a. Pursuant to Chapter 33-601.202(2)(a), F.A.C., supervision of the work squad(s) will be provided by the Department. The Department shall provide two (2) Correctional Work Squad Officer position(s) to supervise an inmate work squad(s). This Contract provides for two (2) Work Squad(s) of up to five (5) inmates. b. The Department shall ensure the availability of the work squad(s) except: when weather conditions are such that to check the squad(s) out would breach good security practices; when the absence of the Correctional Work Squad Officer is necessary for reasons of required participation in training or approved use of leave; when the Officer’s presence is required at the institution to assist with an emergency situation; when the officer is ill; or when the Correctional Work Squad Officer position is vacant. In the event a position becomes vacant, the Department shall make every effort to fill the position(s) within five (5) working days. c. For security and other reasons, the Department shall keep physical custody of the vehicles, trailers, and all tools, equipment, supplies, materials and personal work items (gloves, boots, hard hats, etc.) furnished by the Agency. (The Department shall maintain an inventory of all property, expendable and non-expendable, provided by the Agency, which is in the care, custody, and control of the Department.) A hand receipt shall be signed by the Department’s Work Squad Supervisor upon the issuance and return of non-expendable items. d. In the event of damage to property as a result of an accident charged to a Department employee or blatant acts of vandalism by inmates, or loss of tools and equipment, the Agency may request that the Department replace or repair to previous condition the damaged or lost property. e. The Department shall be reimbursed by the Agency for the Department’s costs associated with this Contract in accordance with Addendum A. Page 2 of 12 Master Document Revised 03/2013 Packet Pg. 372  CONTRACT # WS909 Once the Agency reimburses the Department for the costs reflected on Addendum A, Section II., these items will be placed on the Department’s property records, as appropriate, and upon the end or termination of this Contract such items will be transferred to the Agency. f. The Department shall, to the maximum extent possible, maintain stability in the inmate work force assigned to the work squad on a day-to-day basis in order to maximize the effectiveness of the work squad. g. The Department shall provide food and drinks for inmates’ lunches. h. The Department shall be responsible for the apprehension of an escapee and handling of problem inmates. The Department shall provide transportation from the work site to the correctional facility for inmates who refuse to work, become unable to work, or cause a disruption in the work schedule. i. The Department shall be responsible for administering all disciplinary action taken against an inmate for infractions committed while performing work under this Contract. j. The Department shall provide for medical treatment of ill or injured inmates and transportation of such inmates. k. The Department shall provide inmates with all personal items of clothing appropriate for the season of the year. l. The Department shall be responsible for driving the Correctional Work Squad Officer and the inmates to and from the work site. m. Both parties agree that the Department is making no representations as to the level of skills of the work squad. 2. Responsibilities of the Agency a. The Agency shall periodically provide the Department’s Contract Manager with a schedule of work to be accomplished under the terms of this Contract. Deviation from the established schedule shall be reported to, and coordinated with, the Department. b. If required, the Agency shall obtain licenses or permits for the work to be performed. The Agency shall provide supervision and guidance for projects that require a permit or which require technical assistance to complete the project. c. The Agency shall ensure that all projects utilizing inmates are authorized projects of the municipality, city, county, governmental Agency, or non-profit organization and that private contractors employed by the Agency do not use inmates as any part of their labor force. Page 3 of 12 Master Document Revised 03/2013 Packet Pg. 373  CONTRACT # WS909 d. The Agency shall retain ownership of any vehicles or equipment provided by the Agency for the work squad. The Agency shall maintain its own inventory of transportation, tools and equipment belonging to the Agency. e. The Agency shall provide vehicles for transportation of the work squads. 3. Communications Equipment It is the intent of this Contract that the Work Squad have and maintain communication with the institution at all times. A method of communication (radios, cellular phone, etc.), shall be provided at no cost to the Department. The Agency shall provide a primary method of communication that shall be approved by the Contract Manager in writing prior to assignment of the work squad. Depending upon the method of communication provided, the Contract Manager may require a secondary or back-up method of communication. All radio communication equipment owned or purchased by the Agency that is programmed to the Department’s radio frequency and used by the work squad(s), whether purchased by the Department or the Agency, shall be IMMEDIATELY deprogrammed by the Department at no cost to the Agency upon the end or termination of this Contract. Under no circumstances shall the Agency accept the return of radio communications equipment provided to the Department under this Contract until such time as the radio communications equipment has been deprogrammed by the Department. At the end or termination of this Contract, the Department's Contract Manager will contact the Department's Utility Systems/Communications Engineer in the Bureau of Field Support Services, Central Office, to effect the deprogramming of radio communications equipment provided by the Agency. a. Vehicle Mounted Radios: Vehicles provided by the Agency that are or that will be equipped with a mobile/vehicle mounted radio programmed to the Department's radio frequency(ies) will be retained by the Department to ensure security of the communication equipment except for short durations dictated by the need for vehicle and/or communications equipment maintenance and/or repair. The use of these vehicle(s) during the period covered by this Contract shall not be for any purpose other than as indicated in this Contract. b. Hand Held Radios: Hand held radios provided by the Agency that are or that will be programmed to the Department's radio frequency(ies) will be retained by the Department to ensure security of the communication equipment except for short durations dictated by the need for maintenance and/or repair. The use of any hand held radio(s) provided by the Agency that is programmed to a Department radio frequency utilized by the Agency during the period covered by this Contract shall not be for any purpose other than as indicated in this Contract. Page 4 of 12 Master Document Revised 03/2013 Packet Pg. 374  CONTRACT # WS909 c. Cellular Phones: Cellular phones may be utilized by the work squad officer as either a primary or secondary means of communication as approved by the Contract Manager. The Contract Manager shall designate whether the usage of a cellular phone is required on Addendum A. The cellular phone will be retained by the Department and upon the end or termination of this Contract, returned to the Agency. The use of the cellular phone is not authorized for any purposes other than as indicated in this Contract. 4. Other Equipment The Contract Manager shall determine if an enclosed trailer is required for the work squad to transport tools and equipment utilized in the performance of this Contract and shall notify the Agency when a trailer is necessary. The Contract Manager shall designate whether the usage of an enclosed trailer is required on Addendum A. If a trailer for the work squad is provided by the Agency at no cost to the Department, and the Department maintains the trailer when the squad is not working, the Agency shall provide an enclosed trailer that can be secured when not in use. All tools and equipment utilized by the work squad shall be secured in the trailer. Upon the end or termination of this Contract, the trailer will be returned to the Agency. III. COMPENSATION A. Payment to the Department 1. Total Operating Capital To Be Advanced By Agency, as delineated in Section IV., of Addendum A, shall be due and payable upon execution of the Contract. The Department will not proceed with the purchase until payment, in full, has been received and processed by the Department’s Bureau of Finance and Accounting. Delays in receipt of these funds may result in start-up postponement or interruption of the services provided by the Work Squad. 2. Total Costs To Be Billed To Agency By Contract, as delineated in Section VI., of Addendum A, will be made quarterly, in advance, with the first payment equaling one-fourth of the total amount, due within two (2) weeks after the effective date of the Contract. The second quarterly payment is due no later than the 20th day of the last month of the first Contract quarter. Payment for subsequent consecutive quarters shall be received no later than the 20th day of the last month of the preceding Contract quarter. 3. In the event the Correctional Work Squad Officer position becomes vacant and remains vacant for a period of more than five (5) working days, the next or subsequent billing will be adjusted by the Department for services not provided. 4. The Agency shall insure any vehicles owned by the Agency used under this Contract. 5. The rate of compensation shall remain in effect through the term of the Contract or subsequent to legislative change. In the event there is an increase/decrease in costs identified in Addendum A, this Contract shall be amended to adjust to such new rates. Page 5 of 12 Master Document Revised 03/2013 Packet Pg. 375  CONTRACT # WS909 B. Official Payee The name and address of the Department’s official payee to whom payment shall be made is as follows: Department of Corrections Bureau of Finance and Accounting Attn: Professional Accountant Supervisor Centerville Station Call Box 13600 Tallahassee, Florida 32317-3600 C. Submission of Invoice(s) The name, address and phone number of the Agency’s official representative to whom invoices shall be submitted to is as follows: Clay Simmons, Road Division Manager Okaloosa County, Board of County Commissioners 1759 South Ferdon Boulevard Crestview, Florida 32536 Telephone: (850) 689-5770 Fax: (850) 689-5786 E-mail: csimmons@co.okaloosa.fl.us IV. CONTRACT MANAGEMENT The Department will be responsible for the project management of this Contract. The Department has assigned the following named individuals, address and phone number as indicated, as Contract Manager and Contract Administrator for the Project. A. Department’s Contract Manager The Warden of the Correctional Institution represented in this Contract is designated Contract Manager for the Department and is responsible for enforcing performance of the Contract terms and conditions and shall serve as a liaison with the Agency. The position, address and telephone number of the Department’s Contract Manager for this Contract is: Warden Okaloosa Correctional Institution 3189 Little Silver Road Crestview, Florida 32539 Telephone: (850) 682-0931 B. Department’s Contract Administrator The Contract Administrator for the Department is responsible for maintaining a Contract file on this Contract service and will serve as a liaison with the Contract Manager for the Department. The address and telephone number of the Department’s Contract Administrator for this Contract is: Page 6 of 12 Master Document Revised 03/2013 Packet Pg. 376  CONTRACT # WS909 Operations Manager, Contract Administration Bureau of Contract Management and Monitoring 501 South Calhoun Street Tallahassee, FL 32399-2500 Phone: (850) 717-3681 Fax: (850) 488-7189 C. Agency’s Representative The name, address and telephone number of the representative of the Agency is: Clay Simmons, Road Division Manager Okaloosa County, Board of County Commissioners 1759 South Ferdon Boulevard Crestview, Florida 32536 Telephone: (850) 689-5770 Fax: (850) 689-5786 E-mail: csimmons@co.okaloosa.fl.us D. Changes to Designees In the event that different representatives are designated by either party after execution of this Contract, notice of the name and address of the new representatives will be rendered in writing to the other party and said notification attached to originals of this Contract. V. CONTRACT MODIFICATIONS Modifications to provisions of this Contract shall only be valid when they have been rendered in writing and duly signed by both parties. The parties agree to renegotiate this Contract if stated revisions of any applicable laws, regulations or increases/decreases in allocations make changes to this Contract necessary. VI. TERMINATION/CANCELLATION Termination at Will This Contract may be terminated by either party upon no less than thirty (30) calendar days notice, without cause, unless a lesser time is mutually agreed upon by both parties. Said notice shall be delivered by certified mail (return receipt requested), by other method of delivery whereby an original signature is obtained, or in-person with proof of delivery. In the event of termination, the Department will be paid for all costs incurred and hours worked up to the time of termination. The Department shall reimburse the Agency any advance payments, prorated as of last day worked. VII. CONDITIONS A. Records The Agency agrees to: (a) keep and maintain public records that would ordinarily and necessarily be required by the Department to perform the contracted services; (b) allow public access to records in accordance with the provisions of Chapter 119 and 945.10, Florida Statutes; (c) ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law; (d) meet all requirements for retaining public records and transfer to the Department, at no cost, all public records in the Agency’s possession upon Page 7 of 12 Master Document Revised 03/2013 Packet Pg. 377  CONTRACT # WS909 termination of the contract and destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. All records stored electronically must be provided to the Department in a format that is compatible with the Department’s information technology systems. The Agency’s failure to comply with this provision shall constitute sufficient cause for termination of this Contract. B. Annual Appropriation The Department’s performance under this Contract is contingent upon an annual appropriation by the legislature. It is also contingent upon receipt of payments as outlined in Addendum A and in Section III, COMPENSATION. C. Disputes Any dispute concerning performance of the Contract shall be resolved informally by the Contract Manager. Any dispute that can not be resolved informally shall be reduced to writing and delivered to the Assistant Secretary of Institutions. The Assistant Secretary of Institutions, shall decide the dispute, reduce the decision to writing, and deliver a copy to the Agency with a copy to the Contract Administrator and Contract Manager. D. Force Majeure Neither party shall be liable for loss or damage suffered as a result of any delay or failure in performance under this Contract or interruption of performance resulting directly or indirectly from acts of God, civil, or military authority, acts of public enemy, war, riots, civil disturbances, insurrections, accidents, fire, explosions, earthquakes, floods, water, wind, lightning, strikes, labor disputes, shortages of suitable parts, materials, labor, or transportation to the extent such events are beyond the reasonable control of the party claiming excuse from liability resulting there from. E. Severability The invalidity or unenforceability of any particular provision of this Contract shall not affect the other provisions hereof and this Contract shall be construed in all respects as if such invalid or unenforceable provision was omitted. F. Verbal Instructions No negotiations, decisions, or actions shall be initiated or executed by the Agency as a result of any discussions with any Department employee. Only those communications which are in writing from the Department’s administrative or project staff identified in Section IV, CONTRACT MANAGEMENT, of this Contract shall be considered as a duly authorized expression on behalf of the Department. Only communications from the Agency that are signed and in writing will be recognized by the Department as duly authorized expressions on behalf of the Agency. G. No Third Party Beneficiaries Except as otherwise expressly provided herein, neither this Contract, nor any amendment, addendum or exhibit attached hereto, nor term, provision or clause contained therein, shall be construed as being for the benefit of, or providing a benefit to, any party not a signatory hereto. Page 8 of 12 Master Document Revised 03/2013 Packet Pg. 378  CONTRACT # WS909 H. Prison Rape Elimination Act (PREA) The Agency will comply with the national standards to prevent, detect, and respond to prison rape under the Prison Rape Elimination Act (PREA), Federal Rule 28 C.F.R. Part 115. The Agency will also comply with all Department policies and procedures that relate to PREA. Waiver of breach of any provision of this Contract shall not be deemed to be a waiver of any other breach and shall not be construed to be a modification of the terms of this Contract. This Contract will be governed by and construed in accordance with the laws of the State of Florida. Any action hereon or in connection herewith shall be brought in Leon County, Florida. This Contract and Addendum A contain all of the terms and conditions agreed upon by the parties. IN WITNESS THEREOF, the parties hereto have caused this Contract to be executed by their undersigned officials as duly authorized. AGENCY: OKALOOSA COUNTY, BOARD OF COUNTY COMMISSIONERS SIGNED BY: NAME: TITLE: DATE: FEID #: DEPARTMENT OF CORRECTIONS Approved as to form and legality, subject to execution. SIGNED SIGNED BY: BY: NAME: Michael D. Crews NAME: Jennifer A. Parker TITLE: Secretary TITLE: General Counsel Department of Corrections Department of Corrections DATE: DATE: Page 9 of 12 Master Document Revised 03/2013 Packet Pg. 379  Addendum A Inmate Work Squad Detail of Costs for Okaloosa County, Board of County Commissioners Interagency Contract Number WS909 Effective August 22, 2014 ***ENTER MULTIPLIERS IN SHADED BOXES ONLY IF TO BE INVOICED TO AGENCY*** Per Officer Total Annual Cost Annual Cost I. CORRECTIONAL WORK SQUAD OFFICER SALARIES AND POSITION RELATED-EXPENSES TO BE REIMBURSED BY THE AGENCY: Officers Salary # Officers Multiplier 2 $ 54,194.00 ** $ 108,388.00 Salary Incentive Payment $ 1,128.00 $ 2,256.00 Repair and Maintenance $ 121.00 $ 242.00 State Personnel Assessment $ 354.00 $ 708.00 Training/Criminal Justice Standards $ 200.00 $ 400.00 Uniform Purchase $ 400.00 $ 800.00 Uniform Maintenance $ 350.00 $ 700.00 Training/Criminal Justice Standards * $ 2,225.00 TOTAL - To Be Billed By Contract To Agency $ 58,972.00 $ 113,494.00 *Cost limited to first year of contract as this is not a recurring personnel/position cost. ** Annual cost does not include overtime pay. IA. The Overtime Hourly Rate of Compensation for this Contract is $31.85, if applicable. (The Overtime Hourly Rate of Compensation shall include the average hourly rate of pay for a Correctional Officer and the average benefit package provided by the department, represented as time and one half for purposes of this Contract.) " Number Total Squads Annual Cost II. ADMINISTRATIVE COSTS TO BE REIMBURSED BY THE AGENCY: Costs include but may not be limited to the following: Rain coats, staff high visibility safety vest, inmate high visibility safety vest, fire extinguisher, first aid kit, personal protection kit, flex cuffs, warning signs, handcuffs, Igloo coolers, portable toilets, insect repellants, masks, vaccinations, and other administrative expenses. 2 $ 1,500.00 TOTAL - To Be Billed By Contract To Agency $ 1,500.00 III. ADDITIONAL AGENCY EXPENSES: Tools, equipment, materials and supplies not listed in Section II above are to be provided by the Agency. CELLULAR PHONE WITH SERVICE REQUIRED: YES X NO ENCLOSED TRAILER REQUIRED: YES NO X Addendum A Revised 06-02-03/01-12-04 Page 10 of 12 Packet Pg. 380  Addendum A Inmate Work Squad Detail of Costs for Okaloosa County, Board of County Commissioners Interagency Contract Number WS909 Effective August 22, 2014 Per Unit Number Total Bill To Provided Already IV. OPERATING CAPITAL TO BE ADVANCED BY AGENCY: Cost of Units Cost Agency By Agency Exists Hand Held Radio MACOM $4969.00 X 2 $ - X Vehicle Mounted Radio MACOM $5400.00 $ - TOTAL Operating Capital To Be Advanced By Agency $ - Total V. TOTAL COSTS TO BE ADVANCED BY AGENCY: Cost 1. Operating Capital - from Section IV. $0.00 2. Grand Total - To Be Advanced By Agency At Contract Signing: $0.00 VI. TOTAL COSTS TO BE BILLED TO AGENCY BY CONTRACT: Total Cost 1. Correctional Officer Salaries and Position-Related Expenses - from Section I. $113,494.00 2. Other Related Expenses and Security Supplies - from Section II. $1,500.00 3. Grand Total - To Be Billed To Agency By Contract: $114,994.00 VII. TOTAL OF ALL COSTS ASSOCIATED WITH CONTRACT: $114,994.00 (Total of Sections V. and VI.) VIII. OVERTIME COSTS: If the contracting Agency requests overtime for the work squad which is approved by the Department, the contracting Agency agrees to pay such costs and will be billed separately by the Department for the cost of overtime. Addendum A Revised 06-02-03/01-12-04 Page 11 of 12 Packet Pg. 381  Addendum A - INSTRUCTIONS Inmate Work Squad Detail of Costs for Okaloosa County, Board of County Commissioners Interagency Contract Number WS909 Effective August 22, 2014 Section I. Costs in this section are determined each fiscal year by the Budget and Management Evaluation Bureau and are fixed. By entering the number of Officers required for this contract, the spreadsheet will automatically calculate the "Total Annual Cost" column. If this Work Squad is beyond the first year of existence, enter a zero (0) in the "Total Annual Cost" column for "Training/Criminal Justice Standards" after you have entered the "# Officers Multiplier". Section II. Safety and environmental health procedures require safety measures such as the use of safety signs, vests, and clothing. The Department's procedure for Outside Work Squads requires that all Work Squad Officers be responsible for ensuring their squad is equipped with a first aid kit and a personal protection equipment (PPE) kit. Section II identifies such required equipment. A new squad must be sufficiently equipped and an on-going squad must be re-supplied when needed. Type in the number of squads used for this contract and the spreadsheet will automatically calculate the fixed annual expense of $750.00 per squad and place the total in Section VI. Section III. Check "Yes" or "No" to indicate whether a Cellular Phone with Service and/or an Enclosed Trailer is required by the Contract Manager. Section IV. The Department's procedure for Outside Work Squads requires that they have at least one (1) primary means of direct communication with the Institution’s Control Room. Communication via radio and/or cellular phone is appropriate. It is preferred that a backup, secondary means of communication also be available. It is the Agency's responsibility to provide them. If the Department purchases a radio(s), the Agency must fund the purchase at the time the Contract is signed. Check the box for the type of radio and fill in the Per Unit Cost for the type of radio, Number of Units, and Total Cost columns. Leave the Total Cost column blank if a radio(s) is not being purchased at this time. Check applicable boxes ("Bill to Agency", "Provided by Agency" and "Already Exists") for each radio. NOTE: All radio communication equipment owned or purchased by the Agency that is programmed to the Department's radio frequency and used by the work squad(s), whether purchased by the Department or the Agency, shall be IMMEDIATELY deprogrammed by the Department at no cost to the Agency upon the end or termination of this Contract. Section V. The total funds the Agency must provide at the time the contract is signed will be displayed here when the form is properly filled out. Section VI. The total funds the Agency will owe contractually, and pay in equal quarterly payments, will be displayed here. Section VII. The total funds associated with the Contract, to be paid by the Agency as indicated in Sections V. and VI., will be displayed here. Section VIII. Any agreement in this area will be billed separately as charges are incurred. Addendum A Revised 06-02-03/01-12-04 Page 12 of 12 Packet Pg. 382  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Don Turner SUBJECT: CM Selection Committee Members - SO New Building DEPARTMENT: Facility Maintenance BCC DISTRICT: All STATEMENT OF ISSUE: (FM) Request BCC approval of the recommended members for the Selection Committee for the CM for the Sheriff's New Shalimar Building BACKGROUND: At the February 4th, 2014 BCC meeting, the Board authorized advertising for a Construction Manager for the Sheriff's new Shalimar building. The RFQ has been completed after extensive internal reviews. The RFQ is in the hands of county Purchasing to be put out for proposals. Once the proposals are received, your authorized Selection Committee will review the responsive proposals and make a recommendation to the Board as to the firm that appears to be the most highly qualified. The recommended members of the Selection Committee for the CM for the Sheriff's new Shalimar building are: Ernie Padgett, County Administrator Maj. JD Peacock, Sheriff’s Office Donald Turner, Facilities Maintenance Director Jason Autrey, P.E., County Engineer Elliott Kampert, Growth Management Director RECOMMENDATIONS: (FM) Request BCC approval of the recommended members for the Selection Committee for the CM for the Sheriff's New Shalimar Building RECOMMENDED BY: APPROVED BY: Packet Pg. 383 Ernie Padgett, County Administrator Packet Pg. 384  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Cindy Pederson, Administrative Director, Public Defender SUBJECT: Public Defenders Office - Request for Reserve Funding A request submitted by the Public Defender's Office for reserve funding in the amount of $5,319.85 Is attached for review. Packet Pg. 385 From: Cindy Pedersen To: rosims@co.escambia.fl.us; Rick Owen Cc: Stephan Hall; david lambert Subject: Request for Okaloosa Reserve Funds Date: Friday, March 21, 2014 10:17:23 AM Attachments: Quotes for Reserve Funding Request.pdf Totals Summary - County IT Funds Reserve Request.docx Okaloosa County.docx Attached please find information prepared by my IT Director, David Lambert, regarding projects that are needed in the current year to maintain the integrity of our computer systems and programs. These expenditures will be divided among the four counties in the circuit. I am requesting that this item be placed on the agenda for the next BCC meeting. Please let me know when that meeting will be held. All expenditures will be in account 54601 Repairs/Maintenance. Stephan Hall, our Budget Manager with Escambia County, has been notified and I am copying him on this email. If any additional information is needed, please contact me or David Lambert. Thank you! Cindy Pedersen Finance and Accounting Director Public Defenders Office First Judicial Circuit 850-595-4100, ext. 223 _________________________________________________________________________ All e-mails sent to this address are archived and retained by the Public Defender's Office, First Judicial Circuit. _________________________________________________________________________ This e-mail may contain PRIVILEGED AND CONFIDENTIAL INFORMATION intended only for the use of the addressee(s) named above. If you are not the intended recipient of this e-mail, YOU ARE HEREBY NOTIFIED that any dissemination or copying of this material is strictly prohibited. Packet Pg. 386 Memo To: Whom it may concern From: David Lambert, Information Systems Director Date: March 7, 2014 Re: Okaloosa County, Public Defender’s Office county reserve IT funds request in the amount of $5,319.85 ____________________________________________________________________________________ Item 1: Viable Solutions, Inc. Platinum GroupWise Support Term 4/1/14 – 9/30/2014 $3997.50 Quote # VSI 02041401 to be divided equally among the four counties in our circuit (Escambia, Santa Rosa, Okaloosa, Walton) Cost $999.38 Description -Consolidate GroupWise Post Offices to single Post Office hosted in Main Office Location. -Migrate GroupWise System to new core server in our main office as a virtual Linux machine. -Upgrade to GroupWise version 12. -Install GroupWise Mobility Service on a virtual Linux machine to enable synchronization with mobile smart phones. -Install GroupWise WebAccess on a virtual Linux machine for better compatibility with newer web browsers and enhanced interface. -Install virtual Linux Machine as an eDirectory server. eDirectory is Required to run GroupWise and it’s best practice to run it on a server separate from the GroupWise installation. Justification This item was not included in our 2013-2014 budget request because of an indefinite project timeline. It has become an increasingly important project that we would like to move forward on. General Vendor support for our GroupWise e-mail system ends in June, 2014 with extended support ending in December, 2014. In addition, the physical server that GroupWise in installed on is no longer under warranty. We would prefer to complete this project prior to the 2014-2015 budget year. Packet Pg. 387 Item 2: Microsoft Windows Server 2012 Remote Desktop Services - Licenses Quote # 7695806 Cost $1,326.60 Description Microsoft Windows Server 2012 Remote Desktop Services (RDS) Licenses for all employees working in remote offices. RDS is needed to give employees working in remote offices and offsite the ability to connect to applications hosted in the main office such as the STAC database, Image server, File server, and GroupWise e-mail server in a more efficient manner. We have an out of warranty server currently running in Milton that is to be consolidated to the newer servers running in the Main Office. RDS will provide the remote users with a much faster response time when connected back to the main office servers. Justification This item was not included in our 2013-2014 budget request because of an indefinite project timeline. Iit has become an increasingly important project that we would like to move forward on and we would prefer to complete this project prior to the 2014-2015 budget year. Item 3: Network Communications Inc. General Server Support Hours $2100 Quote # 2472 to be divided equally among the four counties in our circuit (Escambia, Santa Rosa, Okaloosa, Walton) Cost $525 Description The general support hours will be used for several server support related tasks including: -Rebuilding a virtual machine file server that is not performing correctly. -Group policy design, implementation, and testing to facilitate our migration onto a Microsoft Windows network away from a soon to be unsupported Novell Netware network. - Server event log analysis and corrective measures for error events to ensure a healthy system Justification This item was not included in our 2013-2014 budget request because of an indefinite project timeline. However it has recently become needed and we would prefer to complete this project prior to the 2014- 2015 budget year. Item 4: Dell Extended Warranty service for production servers $9875.47 Quote # 1016337710631 to be divided equally among the four counties in our circuit (Escambia, Santa Rosa, Okaloosa, Walton) Cost $2468.87 Description Packet Pg. 388 Warranty service on our three core production servers will expire on 7/15/2014. This quote is to extend the warranty service out to 7/15/2018 which is considered end of life on these servers. Justification This item was not included in our 2013-2014 budget request because the servers were originally purchased with state funds. We are requesting these funds to prevent a lapse in warranty coverage. Packet Pg. 389 Packet Pg. 390 Packet Pg. 391 Packet Pg. 392 Packet Pg. 393 Packet Pg. 394 Packet Pg. 395 Packet Pg. 396 County IT Funds – Reserve Requests March 18, 2014 Escambia Viable Solutions Inc. GroupWise Support - $999.38 Network Communications Inc. - $525 Dell server warranty extensions - $2,468.87 Total: $3,993.25 Santa Rosa Viable Solutions Inc. GroupWise Support - $999.38 SHI - RDS Licenses $1,326.60 Network Communications Inc. - $525 Dell server warranty extensions - $2,468.87 Total: $5,319.85 Okaloosa Viable Solutions Inc. GroupWise Support - $999.38 SHI, RDS Licenses - $1,326.60 Network Communications Inc. -$525 Dell server warranty extensions - $2,468.87 Total: $5,319.85 Walton Viable Solutions Inc. GroupWise Support - $999.38 SHI – RDS Licenses $663.30 Network Communications Inc. - $525 Dell server warranty extensions - $2,468.87 Total: $4,656.55 Packet Pg. 397  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Kathy Newby SUBJECT: Proclamation for Child Abuse Prevention Day DEPARTMENT: County Administrator BCC DISTRICT: All BACKGROUND: The National Exchange Club develops and implements programs to help eliminate child abuse and strengthen families. These programs include: more than 100 Exchange Club Child Abuse Prevention Centers, Shaken Baby Syndrome Awareness, Time Out Teddy, Blue Ribbon Campaign, Fetal Alcohol Syndrome, and Kidcode. In addition, The Emerald Coast Exchange Club incorporated as a non-profit organization ten years ago to serve the Fort Walton Beach community. This service encompasses four pillars: 1) Child Abuse Prevention, 2) Americanism, 3) Community Service and 4) Youth Activities. RECOMMENDATION: Staff recommends approval of and authorize the Chairman to execute a Proclamation declaring April 3, 2014 as "Exchange Club Child Abuse Prevention Day" in Okaloosa County. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 398  P ROCLAMATION WHEREAS, child abuse is a serious and growing problem affecting more than 3.2 million of our nation's children annually; and community problem and finding solutions depends on involvement among people throughout the community, and WHEREAS, statistics of children who are abused and neglected escalate each year; and WHEREAS, the effects of child abuse are felt by whole communities and should be addressed by the entire community; and WHEREAS, effective child abuse prevention programs succeed because of partnerships created among social service agencies, schools, religious organizations, law enforcement agencies and the business community; and WHEREAS, youth-servicing prevention programs offer positive alternatives for young people and en- courage youth to develop strong ties to the community; and WHEREAS, all citizens should become more aware of child abuse and its prevention and should become involved in supporting parents to raise their children in a safe, nurturing environment; and WHEREAS, the Emerald Coast Exchange Club, through its support of parent aide programs, parenting classes, educational programs and community service activities, is assisting in making significant progress in stop- ping this crime against families and children. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Okaloosa County, Florida, that we do hereby proclaim April 3, 2014 as EXCHANGE CLUB CHILD ABUSE PREVENTION DAY In Okaloosa County, Florida and urges all citizen to use this time to better understand their role in recognizing and responding to child abuse. The new Florida Mandated Reporter law states “ Any person who knows or has reason- able cause to suspect a child or vulnerable adult is abused, abandoned, or neglected reporter may remain anony- mous” {Fla.Stat. 39.201(1)(b)}. And further congratulates the Emerald Coast Exchange Club for its continued com- mitment in helping families break free from the cycle of child abuse. DULY PASSED AND ADOPTED this 1st day of April, 2014. BOARD OF COMMISSIONERS OKALOOSA COUNTY, FLORIDA ATTEST: _________________________________ CHARLES K. WINDES, JR. CHAIRMAN ___________________________ DON W. HOWARD CLERK OF CIRCUIT COURT Packet Pg. 399  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Major J.D. Peacock, Sheriff's Office SUBJECT: Request Approval of LETF Disbursement [Non-BCC] The Sheriff is requesting the Board approve Law Enforcement Trust Fund disbursements for various activities in the following amounts: 1. Emerald Coast Children's Advocacy Center in the amount of $3,000; 2. Kappa Alpha Psi Fraternity Youth Super Day in the amount of $500; 3. Emerald Coast Crime Stoppers in the amount of $1,000; Mary Esther Green, Inc., $100 Total Disbursement Requested: $4,600 Packet Pg. 400 March 26, 2014 Agenda Request: LETF Disbursement Request, April 1, 2014 Agenda To: Mr. Ernie Padget, County Administrator From: Major J.D. Peacock, Administration Bureau Chief Re: State Law Enforcement Trust Fund Request board consideration of trust fund disbursement in support of: 1. Emerald Coast Children’s Advocacy Center, $3,000 2. Kappa Alpha Psi Fraternity, Youth Super Day, $500 3. Emerald Coast Crime Stoppers, $1,000 4. Mary Esther Green, Inc., $100 Total Disbursement Requested: $4,600 Packet Pg. 401 Packet Pg. 402 Packet Pg. 403 Packet Pg. 404 Packet Pg. 405 Packet Pg. 406 Packet Pg. 407 Packet Pg. 408 Packet Pg. 409 Packet Pg. 410 Packet Pg. 411 Packet Pg. 412 Packet Pg. 413 Packet Pg. 414  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Kay Godwin SUBJECT: Approval to Pay GASB 45 Actuarial Study DEPARTMENT: Human Resources BCC DISTRICT: ALL STATEMENT OF ISSUE: Request approval to pay the invoice for actuarial services from Milliman for the GASB 45 actuarial study. BACKGROUND: On April 9, 2008, the County entered into a contract with Milliman, an actuarial services company, to perform the GASB 45 actuarial study. The GASB 45 study estimates the county’s future liability for retiree health insurance. The contract calls for a fee of $16,000 for the initial study. No contract amount is specified for future years. The bill for the fiscal year ended September 30, 2013 is $3,500. This amount is less than the amount stated in the contract for the initial study; therefore, Finance will not pay for the services without formal BCC approval. OPTIONS: The commission may authorize payment of the Milliman invoice in the amount of $3500 or provide further direction. RECOMMENDATIONS: Risk Management recommends that the commission authorize payment of the invoice for services rendered. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 415 Packet Pg. 416  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Dino J. Villani SUBJECT: Contract Coordination for EMS Billing Services DEPARTMENT: Public Safety BCC DISTRICT: All STATEMENT OF ISSUE: Request Board approval to begin contract coordination for EMS billing services with Advanced Data Processing, Inc. (ADPI) / Intermedix. BACKGROUND & ANALYSIS: The purpose of the contract is to provide professional billing services for EMS. The scope of the contract includes, but is not limited to, patient care reporting, data sharing with key hospitals and reporting to the Florida Department of Health Bureau of EMS, compliance auditing, fee collection, insurance claims, and direct revenue payments. Proposals from six billing companies were submitted on March 7, 2014. The board approved selection committee met on March 24, 2014 to review and rank the proposals. The committee unanimously recommended that ADPI be awarded the contract. ADPI is the current billing contractor and has provided this service for Okaloosa County EMS since May 1999. Through the RFP process, the company proposed continuing and enhancing services at a substantial savings compared to the current contract. Currently, ADPI charges 8.58% of collections which includes Tough Book field computers for electronic patient care reporting. In this proposal they reduced their collections fee to 5.83% providing the same services for an approximately $118,000 annual savings. OPTIONS: Approve or Reject the request to begin the contract coordination process with ADPI. RECOMMENDATION: Staff recommends approving the request to begin the contract coordination process with ADPI. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 417 Packet Pg. 418  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: David Skarzynski, Budget Manager SUBJECT: Budget Resolutions & Transfers Resolution amending the Fiscal Year 2014 Budget, General Fund, which did not reflect adequate appropriations from Florida Department of State for state aid to libraries grant in the amount of $94,700. Resolution amending the Fiscal Year 2014 Budget, Airport Enterprise Fund, which did not reflect adequate appropriations from Florida Department of Transportation (FDOT) for constructing control tower at Destin-Fort Walton Beach Airport grant in the amount of $271,500. BT-14-31 E-911 Operations Fund in the amount of $615.117. Board of County Commissioners' approved purchase of E911 hardware equipment and software upgrade for Public Safety Answering Points in Okaloosa County using E-911 reserves at their March 18, 2014 meeting. BT-14-32 Airport Enterprise Fund in the amount of $67.875. Provide local match for Florida Department of Transportation (FDOT) for constructing control tower at Destin-Fort Walton Beach Airport. Packet Pg. 419  RESOLUTION NO. A RESOLUTION AMENDING THE FISCAL YEAR 2014 BUDGET GENERAL FUND WHEREAS, the Board of County Commissioners in the original budget did not reflect adequate appropriations from Florida Department of State for state aid to libraries grant, and WHEREAS, said additional revenue is evident, and WHEREAS, Section 129.06(2)(d), Florida Statutes provides that a County may, by resolution of the Board of County Commissioners at any time during the fiscal year, appropriate and expend funds received for a particular purpose from a source not anticipated in the original budget, and NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners of Okaloosa County, Florida that the budget for the General Fund be increased, additional receipts appropriated as follows: RECEIPTS DEPT-ACCOUNT AMOUNT Culture/Recreation - State 701471R-334700 $94,700 EXPENDITURES DEPT-ACCOUNT AMOUNT Salaries/Wages – Full-time 701471-512010 $29,724 FICA Taxes 701471-521000 $2,274 Retirement Contributions 701471-522000 $2,066 Life & Health 701471-523000 $9,047 Workers’ Compensation 701471-524000 $77 Rent/Lease – Fleet Vehicles 701471-544644 $500 Insurance - Other 701471-545990 $55 Repair/Maintenance - Equipment 701471-546640 $2,200 Repair/Maintenance – Technical Support 701471-546900 $15,000 Miscellaneous Charges 701471-549900 $17,357 Books/Pubs/Subs & Memberships 701471-554001 $15,400 Training/Education Expense 701471-555001 $1,000 Adopted this regular session the 1st day of April 2014. BOARD OF COUNTY COMMISSIONERS OKALOOSA COUNTY, FLORIDA ____________________________________ CHARLES K. WINDES, JR., CHAIRMAN ATTEST: DON W. HOWARD CLERK OF CIRCUIT COURT BY: ____________________________ Deputy Clerk Budget Amendment No. __________ Packet Pg. 420  RESOLUTION NO. A RESOLUTION AMENDING THE FISCAL YEAR 2014 BUDGET AIRPORT ENTERPRISE FUND WHEREAS, the Board of County Commissioners in the original budget did not reflect adequate appropriations from Florida Department of Transportation (FDOT) for constructing control tower at Destin-Fort Walton Beach Airport grant, and WHEREAS, said additional revenue is evident, and WHEREAS, Section 129.06(2)(d), Florida Statutes provides that a County may, by resolution of the Board of County Commissioners at any time during the fiscal year, appropriate and expend funds received for a particular purpose from a source not anticipated in the original budget, and NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners of Okaloosa County, Florida that the budget for the Airport Enterprise Fund be increased, additional receipts appropriated as follows: RECEIPTS DEPT-ACCOUNT AMOUNT Airport Development 741422R-344410 $271,500 EXPENDITURES DEPT-ACCOUNT AMOUNT Other Construction 741422-562490 $271,500 Adopted this regular session the 1st day of April 2014. BOARD OF COUNTY COMMISSIONERS OKALOOSA COUNTY, FLORIDA ____________________________________ CHARLES K. WINDES, JR., CHAIRMAN ATTEST: DON W. HOWARD CLERK OF CIRCUIT COURT BY: ____________________________ Deputy Clerk Budget Amendment No. __________ Packet Pg. 421  DON W. HOWARD CLERK OF THE CIRCUIT COURT, OKALOOSA COUNTY, FLORIDA ! 1 ! DATE: April1, 2014 I l ! ~~ SUBJECT: Budget Transfer~ E-911 Operations Fund I• TO: Board of County Commissioners l I Finance Director I l 1 Transfer From Department Account Amount Reserve/Cash Carryforward 1401 599010 $615,117 Il ! l! Computer Supplies Computer Software Transfer To Department 1401 1401 Account 552800 552801 Amount $205,039 $205,039 i Computers 1401 564203 $205,039 ~ "l J Il \)~ £J.J\2~:L~n ~\e.; 1 David L. Skarzynsk~dget Manager Budget Transfer: BT-14-31 l -l~ .! l Reference: Board of County Commissioners' approved purchase ofE911 hardware equipment l 1 ! and software upgrade for Public Safety Answering Points in Okaloosa County using E-911 'l reserves at their March 18, 2014 meeting. j l ll II 1 COURTHOUSE • 101 E. JAMES LEE BLVD. • CRESTVIEW, FLORIDA 32536-1359 • (850) 689-5000 REPLY To: BRACKIN BUILDING • 302 NORTH WILSON ST., SUITE 203 • CRESTVIEW, FLORIDA 32536 • (850) 689-5000 COURTHOUSE ANNEX • 1250 N. EGLIN PKWY • SHALIMAR, FLORIDA 32579 • (850) 651-7200 ANNEX EXTENSION • 1940 LEWIS TURNER BLVD • FT. WALTON BEACH, FLORIDA32547 • (850) 651-7200 \ .• , Visit us on the web at http://www.clerkofcourts.cc Packet Pg. 422  DON W. HOWARD CLERK OF THE CJRClJIT COURT, OKALOOSA COUNTY, FLORIDA DATE: April1, 2014 SUBJECT: Budget Transfer- Airport Enterprise Fund TO: Board of County Commissioners Finance Director Transfer From Department Account Amount Cash Balances 4100R 389010 $67,875 Reserve Future Capital Outlay 4299 599300 $67,875 Transfer To Department Account Amount Cash Match 741422R 389920 $67,875 Other Construction 741422 562490 $67,875 Budget Transfer: BT-14-32 Reference: Provide local match for Florida Department of Transportation (FDOT) for constructing control tower at Destin-Fort Walton Beach Airport. 1 ~ l j I ~ 1 ! '! COURTHOUSE • 101 E. JAMES LEE BLVD. • CRESTVIEW, FLORIDA 32536-1359 • (850) 689-5000 lj REPLY To: BRACKIN BUILDING • 302 NORTH WILSON ST., SUITE 203 • CRESTVIEW, FLORIDA 32536 e (850) 689-5000 1 l COURTHOUSE ANNEX • 1250 N. EGLIN PKWY • SHALIMAR, FLORIDA 32579 • (850) 651-7200 ANNEX EXTENSION • 1940 LEWIS TURNER BLVD • FT. wALTON BEACH, FLORIDA 3254 7 • (850) 651-7200 \ ~1 Visit us on the web at http://www.clerkofcourts.cc Packet Pg. 423  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Zan Fedorak SUBJECT: [PUR] Purchase One (1) 2014 85 HP Tractor from State of Florida Contract DEPARTMENT: Purchasing BCC DISTRICT: All STATEMENT OF ISSUE: Seeking Board approval to utilize the State of Florida Contract for the purchase of one (1) 2014 85 HP Tractor from Triple D Equipment, Inc for Public Works. BACKGROUND:The Public Works Department has requested to purchase one (1) 2014 85HP Tractor from the State of Florida Contract. The vendor is Triple D Equipment, Inc. (Deland,FL) with a total cost of $53,945.91. Funding is available in the Public Works FY14 budget account number 3202-564402. OPTIONS: Award/Reject purchase of one (1) 2014 85HP Tractor on State of Florida Contract from Triple D Equipment, Inc. RECOMMENDATIONS: Staff recommends approving purchase of one (1) 2014 85HP Tractor on State of Florida Contract from Triple D Equipment, Inc. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 424 Packet Pg. 425 Packet Pg. 426 Packet Pg. 427  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Zan Fedorak SUBJECT: [PUR] Seeking Board Approval to Purchase One (1) Front End Loader (4.75cy) DEPARTMENT: Purchasing BCC DISTRICT: All STATEMENT OF ISSUE: [PUR] Seeking Board approval to purchase one (1) Front End Loader (4.75cy) RFB #34-14. BACKGROUND: The Public Works Department has requested the purchase of a Front End Loader (4.75cy). Bids were opened on March 12, 2014 and eight (8) bids were received. Coastal Machinery Company (Pensacola, FL) submitted the lowest responsive bid meeting specifications for a total cost of $204,058.90. Funding is available in the Public Works FY14 budget account #3202-564402. OPTIONS: Approve/Deny purchase of one (1) EA 2014 Bobcat Loader Model #T870 from Coastal Machinery Company for $204,058.90. RECOMMENDATION: Staff recommends approving purchase of One (1) Front End Loader from Coastal Machinery Company for $204,058.90. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 428 Packet Pg. 429 Packet Pg. 430 Packet Pg. 431  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Zan Fedorak SUBJECT: [PUR] Requesting approval to solicit a Request for Qualifications (RFQ) for Information Technology S DEPARTMENT: Purchasing BCC DISTRICT: All STATEMENT OF ISSUE: Purchasing seeks approval from the Board to solicit a RFQ for Information Technology Services and to reject the previous RFQ process. BACKGROUND & ANALYSIS: On November 5, 2013 the Board approved for Purchasing to solicit a RFQ for Information Technology Services. At the conclusion of the RFQ process a wording issue was discovered in the RFQ documentation. To provide a fair opportunity for all vendors who had responded to the RFQ, it was determined that the RFQ process should be canceled and repeated with a modified document. Purchasing is seeking approval from the Board to move forward with a new solicitation process for the Information Technology Services and to reject the previous process. Approval is also being requested to approve the Selection Committee; Don Vanderhoek, Randy Sims, Donna Lawler and Dan Sambenedetto. Department background: The Information Systems Department is requesting qualifications from professional information technology firms for professional information technology services including, but not limited to, networking, networking equipment, fiber connections, design, Voice Over Internet Protocol (VoIP), routing, switching, administration, analysis, installation, security, storage, virtual environments and email. The nature of the service will be to provide ongoing support and coordination in order to enhance and ensure proper implementation of the aforementioned system components. OPTIONS: Approve/Disapprove to solicit a RFQ for Information Technology Services and to reject the previous process. RECOMMENDATION: Staff recommends approving to solicit a Request for Qualifications RFQ for Information Technology Services and to reject the previous process. RECOMMENDED BY: Packet Pg. 432 APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 433  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Zan Fedorak SUBJECT: [PUR] Requesting approval to award Bid for Minor Repairs and Additions to Health Depar DEPARTMENT: Purchasing BCC DISTRICT: All STATEMENT OF ISSUE: Requesting approval to award Bid # RFB HD 32-14 for minor repairs and additions to the Health Department Modular Building and request authorization for the Chairman to sign the contract. BACKGROUND: Bids were opened on March 5, 2014 to solicit a construction company to perform minor repairs and additions to the Health Department Modular Building and only one (1) bid was received. Jimmy Henderson II Construction (Fort Walton Beach, FL) was the only responsive bidder for a total cost of $91,800. Facility Maintenance will be providing guidance regarding any asbestos survey or abatement, if required. OPTIONS: Award/Reject the request to approve the bid submitted by Jimmy Henderson II Construction (Fort Walton Beach, FL) as the only responsive bidder for a total cost of $91,800 to perform minor repairs and additions to the Health Department Modular Building, and authorize the Chairman to sign the contract. RECOMMENDATION: Staff recommends approval to award bid to Jimmy Henderson II Construction (Fort Walton Beach, FL) as the only responsive bidder for a total cost of $91,800 to perform minor repairs and additions to the Health Department Modular Building and authorize the Chairman to sign the contract. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 434 Packet Pg. 435 Packet Pg. 436 Packet Pg. 437 Packet Pg. 438 Packet Pg. 439 Packet Pg. 440 Packet Pg. 441 Packet Pg. 442 Packet Pg. 443 Packet Pg. 444 Packet Pg. 445 Packet Pg. 446 Packet Pg. 447 Packet Pg. 448 Packet Pg. 449 Packet Pg. 450 Packet Pg. 451 Packet Pg. 452 Packet Pg. 453 Packet Pg. 454 Packet Pg. 455 Packet Pg. 456 Packet Pg. 457 Packet Pg. 458 Packet Pg. 459 Packet Pg. 460 Packet Pg. 461 Packet Pg. 462 Packet Pg. 463 Packet Pg. 464 Packet Pg. 465 Packet Pg. 466 Packet Pg. 467 Packet Pg. 468 Packet Pg. 469 Packet Pg. 470 Packet Pg. 471 Packet Pg. 472 Packet Pg. 473 Packet Pg. 474  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: John Vaughn SUBJECT: Outstanding Invoices DEPARTMENT: Fleet BCC DISTRICT: All STATEMENT OF ISSUE: Request approval to pay for four outstanding invoices. Three to Comdata (February 3, 2014 for $594.28, February 17, 2014 for $445.17 and March 3, 2014 for $58.23) for a total of $1,097.68, and another invoice to Mobark dated January 28, 2014 for $2,907.40. BACKGROUND: Historically these invoices have been paid by after-the-fact purchase orders. "After-the-fact" meaning the department submitted a requisition and authorized the purchase prior to a purchase order being issued. Finance no longer approves of this technique. Fleet Operations requests approval for direct payment of these four outstanding invoices. OPTIONS: Approve/Disapprove. RECOMMENDATIONS: Recommend approval of a direct payment for four outstanding invoices as outlined above. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 475 Packet Pg. 476 Packet Pg. 477 Packet Pg. 478 Packet Pg. 479 Packet Pg. 480 Packet Pg. 481 Packet Pg. 482 Packet Pg. 483 Packet Pg. 484 Packet Pg. 485 Packet Pg. 486  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Ed Schroeder SUBJECT: [TDD] Burning Up the Beaches Car Shows DEPARTMENT: Tourist Development Department BCC DISTRICT: STATEMENT OF ISSUE: Request approval of contracts with Horizons for 2013 & 2014 Burning Up The Beaches car shows. BACKGROUND: The previous Tourist Development Director, Dan O’Byrne, made a verbal commitment to L.A. Woodall to fund Horizons Foundation’s agreement with Masters Entertainment Group to produce a car show on location in Fort Walton Beach in 2013 and 2014 to be aired nationally on cable television. The two-year agreement totals $15,000. Legal counsel has advised that the County is under no obligation to honor a verbal agreement. However, there is documentation to show Horizons honored their end of the agreement and a DVD of the 30 minute 2013 television show has been provided to TDD staff. A contract for these services would have to be entered into between the County and Horizons for each year and payment issued via purchase order. The Tourist Development Council voted at its February 27, 2014 meeting to recommend honoring the verbal commitment to pay for the 2013 and 2014 event videos. Funding is available in the revised Strategic Marketing Plan approved by TDC on February 27 and BCC on March 18. OPTIONS: Approve or Disapprove RECOMMENDATION: Approve contracts with Horizons for the 2013 & 2014 Burning Up the Beach car shows. RECOMMENDED BY: APPROVED BY: Packet Pg. 487 Ernie Padgett, County Administrator Packet Pg. 488 Packet Pg. 489 Packet Pg. 490 Packet Pg. 491 Packet Pg. 492 Packet Pg. 493 Packet Pg. 494 Packet Pg. 495 Packet Pg. 496 Packet Pg. 497 Packet Pg. 498 Packet Pg. 499 Packet Pg. 500 Packet Pg. 501 Packet Pg. 502 Packet Pg. 503 Packet Pg. 504 Packet Pg. 505 Packet Pg. 506 Packet Pg. 507 Packet Pg. 508 Packet Pg. 509 Packet Pg. 510 Packet Pg. 511 Packet Pg. 512 Packet Pg. 513  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: John Hofstad SUBJECT: Nature Lake Phase I Warranty Period DEPARTMENT: Public Works BCC DISTRICT: 1 STATEMENT OF ISSUE: The developer has requested approval by the Board of County Commissioners for the Nature Lake Phase I subdivision to enter into the 18-month warranty period as required before acceptance into the County’s permanent maintenance system. BACKGROUND AND ANALYSIS: Plans for the Nature Lake subdivision project were approved for construction on December 5, 2012. The project consists of 160 single family residential lots to be developed in up to three (3) phases over a period of years. In order to address the traffic impact created by the proposed development, the Developer and the County entered into a Development Agreement on July 2013. As required in section 4.4(a) of the agreement, a turn lane from Lake Silver Road into the main entrance road of the development has been constructed as part of the phase I project. Nature Lake Phase I has been constructed, inspected, and found to be in substantial conformance with the approved plans. OPTIONS: Approve/Disapprove the Developer's Request. RECOMMENDATIONS: Approve acceptance of the work performed within the Nature Lake Phase I subdivision to enter into the 18-month warranty period and accept Irrevocable Standby Letter of Credit No. SB72258L Issued by Whitney Bank in the amount of Two Hundred Fifty Thousand Dollars ($250,000.00). RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 514 Packet Pg. 515 Packet Pg. 516 Packet Pg. 517 Packet Pg. 518 Packet Pg. 519 Packet Pg. 520 Packet Pg. 521 Packet Pg. 522 Packet Pg. 523 Packet Pg. 524 Packet Pg. 525 Packet Pg. 526 Packet Pg. 527 Packet Pg. 528 Packet Pg. 529 Packet Pg. 530 Packet Pg. 531 Packet Pg. 532 Packet Pg. 533 Packet Pg. 534 Packet Pg. 535  Memorandum TO: Edwin S. Sanguyo P.E., Public Works Engineer FROM: Don Phillips, Engineering Division DATE: March 7, 2014 SUBJECT: Nature Lake Phase 1 Inspection Report for 18-Month Warranty Period Nature Lake Phase 1 MAILING ADDRESS: LENGTH: Approx. Total: 7,368’ CG Olson, LLC 1241 Airport Rd. Suite C Destin, Fl. 32541 TELEPHONE: (850) 598-7400 FILE #81101 Irrevocable Standby Letter of Credit NO. SB72258L (Whitney Bank) Expiration Date: April 1, 2016 RIGHT OF WAY: 66 feet PAVEMENT WIDTH: 24.0 feet Passed STREET SIGNS: In place Passed SUB-GRADE DENSITY: Standard 98%, In place 99.15% avg. Passed BASE DENSITY: Standard 95.0%, In place 95.50% avg. Passed ASPHALT DENSITY: Standard 92%, In place ASPHALT THICKNESS ROADWAY: Standard 1.50”, In place 1.5/8” Passed ASPHALT THICKNESS CUL-DE-SAC: Standard 2.00”; In place 2.25% Passed GRASSING AND SHOULDERS: Roadside swales and shoulders are shaped and stabilized with seed & mulch. Sod is installed where additional stabilization is required. Sod shall replace seeded swales and shoulders as each lot is developed. DRAINAGE AND EASEMENTS: All drainage structures are in place. Retention areas are constructed and stabilized. Packet Pg. 536  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: John Hofstad SUBJECT: PJ Adams TRIP Agreement with FDOT DEPARTMENT: Public Works BCC DISTRICT: 3 STATEMENT OF ISSUE: In an effort to assist local jurisdictions with off-system roadway improvements, the Florida Department of Transportation (FDOT) utilizes the Transportation Regional Incentive Program (TRIP) as a way to dedicate funds. The attached TRIP agreement will allow the FDOT and County to partner up for a $4.4 million dollar project geared towards improvements on PJ Adams Parkway. In order to accept the funds from FDOT, the Board of County Commissioners must adopt a resolution supporting the project and authorize the chairman to execute the agreement. BACKGROUND: As part of the ongoing effort to make capacity improvements to PJ Adams Parkway, Public Works' staff has been working with FDOT staff to find ways to joint venture on project improvements. Through the TRIP program, FDOT has agreed to match $2.2 million dollars of county funds (for a project total of $4.4 million) to complete the full four lane design from SR 85 to Interstate 10 and to acquire right of way from SR 85 to Ashley Drive. The proposed four lane widening will follow the recommendations of the previously approved PD&E study for PJ Adams Parkway / Antioch Road. Due to the value of the proposed project, engineering design services and right of way acquisition assistance will be advertised and procured in accordance with County purchasing requirements that are consistent with State statutes. In anticipation of this agreement, Public Works has been programming funds over the past few years to serve as the program match. The $2.2 million match provided by Okaloosa County is currently available and budgeted. It is anticipated that once Okaloosa County is successful with this project that future TRIP agreements to further the right of way acquisition and construction will be made available from FDOT. OPTIONS: Approve/Dissapprove execution of the attached resolution supporting the TRIP agreement (Exhibit 2 of the agreement) by the Chairman and execution of the TRIP Agreement with FDOT for $2.2 million in match funds for improvements to PJ Adams Parkway. RECOMMENDATIONS: Approve execution of the attached resolution supporting the TRIP agreement (Exhibit 2 of the agreement) by the Chairman and execution of the TRIP Agreement with FDOT for $2.2 million in match funds for improvements to PJ Adams Parkway. Packet Pg. 537 RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 538 CONTRACT & LEASE INTERNAL COORDINATION SHEET / Contract/Lease Number: Tracking Number: 'J - Contractor/Lessee Name:______________________________ Grant Funded: YES Purpose 'T Date/Term: / (-q 1. 0 GREATER THAN $50,000 Amount: , LOQ CTtF. r 2. GREATER THAN $25,000 Department: 3. LII $25,000 OR LESS Dept. Monitor Name: / AA.ZFILQ_J Document has been reviewed and includes any attachments or exhibits. Purchasing Review ment requirements3pt: / Date: 3-3-1 4~ cm13 ~ Ap ;I r Risk Management Review Date: Risk nager or designee 4 County Attorney Review Date: Cou ty At tor neyJ * Following Okaloosa County approval: Contracts & Grants Document has been received: Date:________________________ Contracts & Grants Manager Packet Pg. 539 Packet Pg. 540 Packet Pg. 541 Packet Pg. 542 Packet Pg. 543 Packet Pg. 544 Packet Pg. 545 Packet Pg. 546 Packet Pg. 547 Packet Pg. 548 Packet Pg. 549 Packet Pg. 550 Packet Pg. 551 Packet Pg. 552 Packet Pg. 553 Packet Pg. 554 Packet Pg. 555 Packet Pg. 556 Packet Pg. 557 Packet Pg. 558 Packet Pg. 559 Packet Pg. 560 Packet Pg. 561 Packet Pg. 562 Packet Pg. 563 Packet Pg. 564 Packet Pg. 565 Packet Pg. 566 Packet Pg. 567 Packet Pg. 568 Packet Pg. 569 Packet Pg. 570 Packet Pg. 571 Packet Pg. 572 Packet Pg. 573 Packet Pg. 574 Packet Pg. 575  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Ed Schroeder SUBJECT: [TDD] Approval of Peter Mayer Task Order 112 (Revised) DEPARTMENT: Tourist Development Department BCC DISTRICT: STATEMENT OF ISSUE: Request approval for Chairman to sign revised Task Order 112 titled BP Media Pass Through Costs, contract C12-2007-TDC Peter A Mayer Advertising, in the amount of $191,255 for online banner ads to run on various national sites and print media. BACKGROUND: Task Order 112 was originally approved on November 19, 2013 for online media only in the amount of $191K. Of the $191K, $41K was designated for Leisureandtravel.com and Foodandwine.com. Placement on Leisureandtravel.com and Foodandwine.com was part of a Visit Florida Co-Op Program package deal including both online and print advertisement at a lump sum price of $41K. The package deal includes ½ page ads in the March 2014 issue of Travel + Leisure magazine and May 2014 issue of Food & Wine magazine as well as online ads on these websites during the months of March, April, and May 2014. Online exposure was not available without the print exposure. Purchasing Food & Wine exposure separately from Travel + Leisure exposure would have been more costly than the package deal. Essentially, the County purchased Travel + Leisure and Food & Wine could be considered as free or a bonus. Pursuant to Section E.700(2) of the Tourist Development Department Operations and Procedures Manual, no advancement of funds will be issued unless specifically approved by the Board. Pursuant to the State Chief Financial Officer’s Reference Guide for State Expenditures, advance payment may be made if the payment results in savings equal to or greater than the amount earned by investing the funds and paying later or if the payment is essential to the operations of the agency and the goods or services are available only if advance payment is made. Board approval of payment in advance is requested since BP funds must be expended prior to the online exposure ending in May and the Food & Wine magazine ad running in May. The overall cost of the task order is not changing. OPTIONS: Approve or Disapprove RECOMMENDATION: Approve Peter Mayer task order 112 titled BP Media Pass Through Costs as revised, as well as payment in advance. Packet Pg. 576 RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 577 Packet Pg. 578 Packet Pg. 579 Packet Pg. 580 Packet Pg. 581 Packet Pg. 582 Packet Pg. 583 Packet Pg. 584 Packet Pg. 585  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Kay Godwin SUBJECT: HR Policy Changes DEPARTMENT: Human Resources BCC DISTRICT: ALL STATEMENT OF ISSUE: Request Board approval of the addition of an anti-fraud policy and changes to other various policies within the Human Resources Policy Manual. BACKGROUND: Following the Auditor General findings, the Human Resources Department, with the assistance from the County’s external auditor, developed the proposed formal anti-fraud policy. This policy has been vetted through staff including department directors and legal counsel. The policy effectively formalizes the processes already in place for handling reports of fraud, and is intended to aid in the detection and prevention of fraud. Current training and new employee orientation programs include ethics, code of conduct, whistleblower reporting and protection, and the current policy on theft/pilfering. Further training will be conducted on warning signs of fraud and what employees should do if they suspect fraud is occurring, in addition to management’s and officials’ responsibilities should they receive a report of fraud. The other proposed changes to existing policies are relatively minor and primarily for clarification purposes. Policy changes are highlighted for quick identification in the attached document. Additions are underlined and deletions are in strikeout format. OPTIONS: Approve/Deny RECOMMENDATIONS: Staff recommends the Board approve the proposed changes to the Human Resources Policy Manual. RECOMMENDED BY: APPROVED BY: Packet Pg. 586 Ernie Padgett, County Administrator Packet Pg. 587 CHAPTER XXXII – BOARD OF COUNTY COMMISSIONERS ANTI-FRAUD POLICY Section A – Purpose The Okaloosa County Anti-Fraud Policy (“Policy”) is hereby established to facilitate the development of controls that will aid in the detection and prevention of fraud, waste and abuse of the County’s financial resources, property, information and other assets, as more fully described herein; provide for the investigation of suspected fraud, waste or abuse; and provide for consequences for engaging in any manner of fraud, waste or abuse. It is the intent of the County to promote consistent organizational behavior by providing guidelines and assigning responsibility for the development of controls and conduct of investigations involving allegations of fraud, waste or abuse. The County will not tolerate the commission or concealment of acts involving fraud, waste, or abuse. Allegations of such acts will be fully investigated, which may result in legal action if warranted. All employees are responsible for reporting suspected instances of fraud, waste, and abuse in accordance with this Policy. Section B – Scope of Policy This Policy applies to any suspected fraud, waste or abuse involving employees, elected officials, members of advisory boards, consultants, vendors, contractors, and/or any other parties or entities that have a business relationship with the County. Any investigative activity required will be conducted without regard to the suspected wrongdoer’s length of service, position, title, or relationship to the County or any elected official, consultant, vendor, contractor, or employee. Matters concerning an employee’s actions or conduct should be resolved by the management of that employee’s department and the Human Resources Department. If there is any question as to whether an action constitutes fraud, waste or abuse, please contact the Human Resources Director or County Administrator for guidance. Section C – Policy Management is responsible for the effectiveness and efficiency of County operations, including protection of County assets from fraud, waste and abuse. Management has the primary responsibility for the implementation of internal controls to deter and detect fraud. 1) Definitions a) Fraud: There are two basic categories of wrongdoing which would constitute fraud: (i) the intentional misstatement of financial information; and (ii) the misappropriation of assets (or theft). Fraud consists of an illegal act (the intentional wrongdoing) and/or the concealment of such act and deriving a benefit from such acts. b) Waste: Waste means the thoughtless or careless expenditure, consumption, mismanagement, use or squandering of resources owned or operated by the County to the detriment or potential detriment of the County. c) Abuse: Abuse means the excessive or improper use of something, or the use of something in a manner contrary to the natural or legal rules for its use; the intentional destruction, diversion, manipulation, misapplication, maltreatment, or misuse or resources owned or Packet Pg. 588  operated by the County. Not all instances of waste and abuse necessarily would constitute fraud but they could. Each member of management for the County and each department will be familiar with the types of improprieties that might occur within his/her area of responsibility and be alert for any indication of fraud, waste or abuse. 2) Actions Constituting Fraud, Waste or Abuse The terms fraud, waste and abuse include, but are not limited to: a) Any dishonest or fraudulent act; b) Misappropriation of funds, securities, equipment, supplies, or other assets; c) Impropriety in the handling or reporting of money or financial transactions; d) Profiteering as a result of insider knowledge of County activities; e) Forgery or alteration of documents (checks, contracts, purchase orders, invoices, etc.); f) Accepting or seeking anything of material value (more than $100) from contractors, vendors, or persons providing services/materials to the County; g) Destruction, removal, or inappropriate use of records, furniture, fixtures, vehicles and equipment; h) Misrepresentation of information on documents (employment history, timesheets, leave records, travel reimbursement requests, financial records, etc.); i) Serious abuse of County time such as unauthorized time away from work, falsification of work hours reported, or excessive use of County time for personal business; j) Authorizing or receiving payment for goods not received or services not performed; k) Vendor kickbacks; l) Misuse of authority for personal gain; m) Any computer related activity involving the alteration, destruction, forgery, or manipulation of data for fraudulent purposes; n) Inappropriate use of County provided electronic devices such as computers, tablets, cell phones, pagers, or email; o) Any violation of local, state and federal laws related to dishonest activities or fraud. 3) Reporting a) Any fraud, waste or abuse that is detected or suspected must be reported immediately to the Human Resources Director, the County Administrator, a County Commissioner, or the County Attorney. Packet Pg. 589  b) Anyone who receives a report of fraud, waste or abuse must immediately notify the Human Resources Director who shall coordinate all investigations with the County Administrator. c) Law Enforcement, external auditors and/or other professionals may also be involved as appropriate. d) The County also has a whistleblower policy that provides a confidential method to file complaints. The County website contains a whistleblower icon which provides reporting options to several members of management to include the Board of County Commissioners, Human Resources Department and the County Administrator. e) It shall be a violation of this Policy for any person to make a baseless allegation of fraud, waste or abuse that is made with reckless disregard for truth and that is intended to be disruptive or to cause harm to the County or another individual. Section D – Prohibition Against Retaliation No person who has acted in accordance with the requirements of this Policy shall be dismissed, or threatened with dismissal; disciplined, suspended or threatened with discipline or suspension; penalized, intimidated or coerced for reporting any suspected fraud, waste or abuse. This provision shall not be construed as an exemption from any other County policies, rules or regulations. Section E – Reporting Procedures Great care must be taken in the investigation of suspected fraud, waste or abuse, so as to avoid mistaken accusations or alerting suspected individuals that an investigation is under way. Anyone who discovers or suspects fraud, waste or abuse shall contact the Human Resources Director, the County Administrator, a County Commissioner, or the County Attorney immediately and should not attempt to personally conduct investigations or interviews/interrogations related to any suspected fraud, waste or abuse. The reporting individual may remain anonymous and file a complaint via the website icon. All inquiries concerning the activity under investigation from the suspected individual, his/her attorney or representative, or any other inquirer should be directed to the Human Resources Department. The proper response to any inquiries concerning the status of an investigation is: “I am not at liberty to discuss this matter.” Under no circumstances should any reference be made to “the allegation,” “the crime,” “the fraud,” “the forgery,” “the misappropriation,” or any other specific reference. The reporting individual should be informed of the following: 1) Do not contact the suspected individual in an effort to determine facts or demand restitution; 2) Do not discuss the case, facts, suspicions, or allegations with anyone unless specifically asked to do so by the County Administrator or Human Resources Director. Section F – Investigation Responsibilities The County Administrator and the Human Resources Department has the primary responsibility for conducting the preliminary investigation of all suspected acts as defined in the Policy. If the preliminary investigation or assessment of the situation indicates that fraud, waste or abuse may have occurred, senior management will involve law enforcement, the external auditors or other Packet Pg. 590 Certified Fraud Examiners (CFE), and/or other professionals as appropriate. These parties shall issue reports to appropriate designated personnel and, if appropriate, to the Board of County Commissioners. Decisions to prosecute or refer the investigation results to the appropriate law enforcement and/or regulatory agencies for independent investigation will be made in conjunction with the County Attorney, senior management, and the County Administrator as will final decisions on disposition of the matter. The County Administrator and Human Resources Department shall treat all information received confidentially to the extent permitted by law. Section G – Sanctions Employees found to have violated this Policy shall be subject to disciplinary action up to and including dismissal. The type of discipline administered will depend on the severity of the conduct as well as any other factors presented in the particular circumstances, and will be administered in accordance with prevailing County policy. The contractual or other business relationship of individuals or entities associated with the County found to have violated this Policy shall be subject to review, with the possible modification or termination of such contractual or business relationship. Section H – Authorization for Investigating Suspected Fraud, Waste or Abuse The County Administrator, Human Resources Director and their designees shall have: 1) Free and unrestricted access to all County records and premises, whether owned or rented; 2) The authority to examine, copy, and/or remove all or any portion of the contents of files, desks, cabinets, and other storage facilities on the premises without prior knowledge or consent of any individual who might use or have custody of any such items or facilities when it is within the scope of their investigation. Section I – Administration The Human Resources Director, with guidance from the County Administrator, is responsible for the administration, revision, interpretation, and application of this Policy. The Policy shall be reviewed periodically and revised as needed. Packet Pg. 591 CHAPTER II – DEFINITIONS 17) Executive Pay Band – A pay grade on the salary schedule created October 1, 2012 that combined grades 83 and 84 into one pay grade (executive pay band). 17)18) Exempt Employees – Executive, Professional, Administrative and Computer employees, as defined in the Fair Labor Standards Act, who are exempt from overtime. 18)19) Full-Time Employee – An employee who works on a continuing basis 3230 hours or more per week. 19)20) Grievance – A dispute alleging a violation of a policy, rule or procedure contained in the Human Resources Policy Manual. 20)21) Human Resources Director – The official designated to administer the human resources system for the County. 21)22) Intern – A college referred, degree-seeking student, desiring a temporary, paid or unpaid, work assignment within Okaloosa County government in order to gain practical experience within a particular field of study. 22)23) Lay-Off (Reduction in Force) – An appointing authority may separate an employee due to, but not limited to, lack of work, lack of funds or abolishment of the position. 23)24) Liaison Commissioner – Board of County Commissioners member appointed by the Board to facilitate mutual understanding between the Board and the Liaison Commissioner’s designated County department(s) by: 1) maintaining and communicating knowledge of department’s overall mission and 2) supporting department’s attainment of goals and mission through an awareness of budget, operations, and special projects. The Liaison Commissioner is not authorized to act on behalf of the Board of County Commissioners and does not act in a decision making or direction capacity unless at a duly advertised public meeting of the Board of County Commissioners. 24)25) Merit Increase – An increase in pay, in the pay range or grade, based on an employee’s job performance. 25)26) Minimum Qualification – Those minimum requirements as to education and experience that qualify an applicant to be considered for appointment. Additional requirements may also be indicated when necessary, such as licenses, certificates and others. 26)27) Non-Exempt Employees – Employees covered by the provisions of the Fair Labor Standards Act who are eligible for overtime. 27)28) On-Call Employees – Individuals who are hired for an indefinite period to meet staffing needs, but who normally work less than a 40 hour workweek. On-call employees are exempt from any benefit provisions except those prescribed by federal or state law, and their service is excluded from continuous service with the County. On-call employees are not eligible to apply for internal vacancies. 28)29) Overtime – Time in excess of 40 hours in a workweek except for certain correctional employees. Packet Pg. 592 29)30) Part-Time Employee – An employee who works on a continuing basis, but less than 30 hours per week. 30)31) Performance Evaluation – A method of evaluating each employee on a periodic basis as to his/her performance on the job. 31)32) Position – An office or post in a department of the County involving duties requiring the services of one (1) person. It can be part-time, full-time, temporary or regular, occupied or vacant. 32)33) Probationary Employee (Initial) – An employee serving the first six (6) months of their appointment. They must pass this period of observation and evaluation successfully. The initial probationary period will be a six (6) month period based on any continuous employment, whether it is full-time or part-time. 33)34) Probationary Employee (Extended) – An employee placed in an extended probationary period due to a disciplinary action, or documented work performance deficiencies. This period may not exceed 90 days past the initial six (6) month probationary period. Any employee placed on an extended probationary period will not be eligible to use annual leave and will not be eligible to be paid any annual leave if termination occurs prior to the end of the extended probationary period. 34)35) Probationary Employee (Promoted, Demoted or Reclassified) – An employee placed in a probationary status, at the discretion of the department director, due to a change in their job title or classification and shall be entitled to use any benefits to which they were entitled prior to the change. 35)36) Promotion – A change of an employee from a position in one class to a position of another class, having a higher minimum salary and carrying a greater scope of discretion and responsibility. 36)37) Reclassification – The assignment of an existing position from one class to a different class due to a significant change in their duties or responsibilities. 37)38) Red-Circle Rate Concept – The concept used that allows an employee to retain their present salary, that is above the maximum pay range for the position, as revised October 1990. 38)39) Regular Employee – Satisfactory completion of the probationary period by an employee results in that employee achieving regular status. 39)40) Resignation – The termination of an employee at his/her request. 40)41) Series – A number of classes related to each other in terms of work within the same occupational field, e.g., Clerk I, Clerk II, and Clerk III would constitute a clerical series. 41)42) Sexual Harassment – Unwelcome sexual advances, request for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when: Packet Pg. 593  a) Submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment; or b) Submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting the individual; or c) Such conduct has the purpose of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile or offensive working environment. 42)43) Suspension – An enforced leave of absence for either disciplinary purposes or pending investigation or charges against an employee. 43)44) Temporary Employee – An employee filling a temporary position for a special project or other work of a temporary nature that will not exist beyond six (6) consecutive calendar months and is not renewable. Upon approval of the County Administrator, temporary appointments may exceed six (6) months when needed to replace or supplement employees incapacitated by workers’ compensation injuries or fill lifeguard positions, on a seasonal basis. 44)45) Transfer (Lateral) – The movement of any one (1) employee from one (1) position to another having the same salary range and the same level of responsibility. 45)46) Vacancy – A position duly created and still existent but not occupied by an employee. CHAPTER IX – ATTENDANCE AND LEAVE Section Q – Compassionate Leave Pool 3) Participation/Maintenance l) The employee’s own illness does do not qualify for use of compassionate leave pool hours. Section R – Domestic Violence Leave 6) Written requests for domestic violence leave and biweekly timesheets or exception reports reflecting domestic violence leave are confidential and exempt from Statute 119.07 (1) and 24 (a), Article 1 of the State Constitution until one (1) year after the leave has been taken. This exemption may be repealed on October 2, 2013, unless reviewed and saved from repeal through reenactment by the Legislature. CHAPTER XXVII – UNIFORMS Section C – Taxation 1) Uniforms are non-taxable if they are: a) Required as a condition of employment; and b) Are not worn or adaptable to general usage as ordinary clothing. Packet Pg. 594  c) Examples of non-taxable uniforms are: i) EMS and Correctional Officer uniforms with clearly identifying County logos; ii) Garments in ANSII approved colors for safety conditions (florescent orange or safety green/chartreuse); iii) Shirts for field employees with identifying features such as prominent County logos and department names; and iv) Steel toed work bootsSafety shoes or boots. 2) Uniforms are taxable if the items of clothing are general in nature and can be worn away from the employee’s place of work and would not identify the employee as a County worker. a) Examples of taxable uniforms are: blue jeans; and non-steel toed work bootssafety shoes or boots. b) The taxable value of uniform items shall be determined by the Purchasing DirectorManager. 3) Uniform taxation rules apply to taxable items whether purchased or leased by the county. The method of payment, including credit card purchases, does not affect whether the items are taxable or not under IRS regulations. 4) Upon issuance of uniform items, the employee and their department representative will complete and sign a Uniforms Issuance, Return and Fringe Benefit Acknowledgement Form and return it to the Human Resources Department. For taxable items, the County will calculate the fringe benefit valuation using IRS regulations and show such amount as gross taxable wages on the employee’s next biweekly pay check. Uniform purchases will be subject to audit by the Purchasing and Finance Departments to ensure compliance with taxing requirements. Packet Pg. 595  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Zan Fedorak SUBJECT: [PUR] Seeking Board Approval to Auction Surplus Items – Ceiling Tiles DEPARTMENT: Purchasing BCC DISTRICT: All STATEMENT OF ISSUE: Purchasing seeks authorization from the Board to auction ceiling tiles from the Shalimar Annex. BACKGROUND & ANALYSIS: During the current auction process it was brought to our attention that bidders were interested in purchasing the ceiling tiles from within the Shalimar Annex. These tiles were not included on the previous surplus items lists which were presented for approval. Purchasing is seeking authorization from the Board to auction the ceiling tiles through our contracted auctioneer Global Enterprises (C14-2104-PUR). The auction of the tiles will be done with a quick turn-around to attempt to complete the auction and pick-up of all items as soon as possible to prepare the building for demolition. OPTIONS: Approve/Disapprove auction of surplus ceiling tiles from the Shalimar Annex through Global Enterprises. RECOMMENDATION: Staff recommends approving auction of surplus ceiling tiles from the Shalimar Annex through Global Enterprises. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 596  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Elliot Kampert SUBJECT: Nature Lake Phase I - Final Plat Approval DEPARTMENT: Growth Management BCC DISTRICT: One - Commissioner Harris STATEMENT OF ISSUE: To review the final plat for Nature Lake Phase I, a proposed 92 lot single family detached residential subdivision as submitted by David Smith with Innerlight Engineering Corporation on behalf of the property owner, CG Olson, LLC. The property is currently zoned Residential 1 (R 1) with the Future Land Use Map (FLUM) designation of Low Density Residential (LDR). The property is located north of Lake Silver Road, west of Dogwood Drive, Crestview and contains 107.63 acres more or less. BACKGROUND: Nature Lake Subdivision is a proposed three (3) phase residential development consisting of a 160 lot single family detached subdivision. As Auburn Water has only approved the first phase of development, the Development Order (DO) for Nature Lake Phase I was issued on February 4, 2013 for 92 lots. On July 2, 2013 the Board of County Commissioners and Nature Lake of NW Florida, LLC entered into a Development Agreement for Nature Lake which includes a specific condition (4.4(a)) that, prior to recording of the final plat for Phase I, the developer must design, construct and dedicate a deceleration/turn lane from Lake Silver road into the main entrance of the development. The Development Agreement has been recorded in the public records in OR Book 3107 Page 3784. OPTIONS: Approve/Disapprove the final plat. RECOMMENDATIONS: The proposed final plat is consistent with the Okaloosa County Comprehensive Plan and Land Development Code. The condition specified in Section 4.4 (a) of the Development Agreement pertaining to the right turn lane off of Lake Silver Road has been designed and constructed as part of the Phase I development. The said improvements will enter the County’s warranty period in conjunction with the BCC approval of the final plat on April 1, 2014. Staff recommends that the Board of County Commissioners approve the final plat as presented. RECOMMENDED BY: Packet Pg. 597 APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 598 Packet Pg. 599 Packet Pg. 600 Packet Pg. 601 Packet Pg. 602 Packet Pg. 603 Packet Pg. 604 Packet Pg. 605 Packet Pg. 606 Packet Pg. 607 Packet Pg. 608  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Constantine Task Order 70 Revision 1 DEPARTMENT: Water and Sewer BCC DISTRICT: 1&5 STATEMENT OF ISSUE: OCWS has requested the services of Constantine Engineering under Task Order 70 Revision 1 per the terms of Contract #C05-1154-WS. Revision 1 (attached) adds $12,800.00 to the current Task Order amount, for a new Task Order total of $164,300.00. BACKGROUND: Constantine Task Order 70, for $151,500, was approved by the BCC in February 2013. Task Order 70 directed Constantine to design, permit, and manage the construction of a new 4.2 MGD sewer repumping station. The project includes installing a new repump station to allow OCWS to divert the flow from the old Niceville Valparaiso Regional WWTF and pump all of the wastewater received from the East County Sewer Service Area via the Meigs-Seminole Pump Station to the Arbennie Pritchett Water Reclamation Facility (APWRF). For a more detailed background on Constantine Task Order 70, please see the attached past agenda request. This same background applies to Revision 1. As part of this project, a building will be constructed to house the above-ground pumps and electrical equipment, in a climate-controlled environment. When the scope of work was defined early on (before design began) and included with Task Order 70, staff did not know the type, size, or method of building construction. Our plan now is to put together bid documents to contract out the construction of this building, that would include a metal building (approximately 45' x 25'), the foundation, MEP (mechanical, electrical, and plumbing work non-associated with the pumps & panels), and other appurtenances. As bid documents are formulated, architectural services are needed to design this building and associated infrastructure. Revision 1 of Task Order 70 adds $12,800 in scope of work for architectural design services and associated support (permitting assistance, bid phase services, and services during construction). OPTIONS: Approve or deny. RECOMMENDATIONS: OCWS requests BCC approval to authorize the Chairman to execute Constantine Task Order 70 Revision 1, adding $12,800.00, for a total not to exceed amount of $164,300.00 on the Task Order. RECOMMENDED BY: Packet Pg. 609 APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 610  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: February 19, 2013 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Constantine Task Order 70 DEPARTMENT: Water and Sewer BCC DISTRICT: 1&5 STATEMENT OF ISSUE: The scope of services for this task order includes professional engineering and technical services required to design, permit, and manage the construction of a new 4.2 MGD sewer repumping station. The project includes installing a new repump station to allow OCWS to divert the flow from the old Niceville Valparaiso Regional WWTF and pump all of the wastewater received from the East County Sewer Service Area via the Meigs-Seminole Lift Station to the Arbennie Pritchett Water Reclamation Facility (APWRF). The Scope of Work for this task order has been developed and negotiated with Constantine Engineering per the terms of our Master Services Agreement to perform these services and requires approval by the Board of County Commissioners. Task Order 70 is attached for your review. BACKGROUND: In July of 2009, OCWS entered into a Memo of Understanding with Eglin Air Force Base (Eglin) to upgrade the 7th Special Forces Group (7SFG) force main in order to accommodate future wastewater flows from Duke Field, Camp Rudder, and Eglin Main Base. In September of 2012, OCWS entered into a contract with Eglin to treat the wastewater from Eglin Main Base and to construct the necessary infrastructure to transmit the wastewater. Included in this scope of work is for OCWS to design and construct a sewer pump station near the Main Base WWTP (at the Northwest Gate). This pump station will transmit wastewater from Eglin Main Base to the 7SFG force main, ultimately leading to APWRF. The new Main Base Lift Station will be owned and maintained by OCWS. Terms of the contract with Eglin allows conveyance of the wastewater from the East County/Bluewater Bay Service Area to the Main Base Lift Station. The cost to upsize this lift station to accommodate East County flows will be borne by OCWS. The agreement allows OCWS to reduce the total force main footage required to convey wastewater to the APWRF as well as the horsepower requirements needed for pumping. The benefit for Eglin is that it reduces the size of the easement needed for the force main and also eliminates a potential conflict with future planned runway construction. In April of 2012, OCWS entered into an interlocal agreement with the City of Niceville and City of Valparaiso to transfer its ownership and treatment capacity at the NVOC Regional Wastewater Treatment Facility. As part of this agreement, OCWS transferred its cost sharing responsibility of the NVOC facility, upon relocation of all of its flows from the East County/Bluewater Bay Service Area to the APWRF. As part of this relocation, OCWS would need to construct a new sanitary sewer force main and repumping station to convey its flows to the APWRF. The proposed East County Repump Station is shown as Phase 9 on the attached East County Master Sewer Plan (labeled as "Proposed College Blvd Lift Station"). The sanitary sewer force main is shown as Phase 10. Note that Eglin has agreed to the alternate route for Packet Pg. 611 Phase 10, constructing the force main into the Main Base Lift Station (Phase 5). OCWS has budgeted $4.5M in FY2012-2014 for the above-mentioned force main (Phase 10), repump station (Phase 9), and upsize to the Eglin Main Base Sewer Pump Station (Phase 5). This $4.5M is funded from the $15M 2012 bank loan. Similar to the approach chosen for the design of the 7SFG force main and sewer pump station, OCWS is proposing for Constantine Engineering to design the repump station and Polyengineering to design the force main. For a project this large and complex, we feel it is best for these two engineering firms to work together and review each other's work. Constantine's Task Order 70 is for the design and other professional services for the construction of a new 4.2 MGD East County Repump Station. The attached Engineering Scope of Services from Constantine Engineering includes the necessary work tasks to complete the scope of work for the design, permitting, and construction management associated with the new East County Repump Station. This Task Order 70 has been negotiated with Constantine Engineering for the necessary Scope of Services and is a not to exceed amount of $151,500.00. OPTIONS: Approve or deny. RECOMMENDATIONS: OCWS requests BCC approval to authorize the Chairman to execute Constantine Engineering Task Order 70, for a not to exceed amount of $151,500.00. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 612  Phase 1: Rocky Bayou 16" Force Main (FM) Phase 7: Replace Meigs-Seminole Lift Station Phase 2: Rocky Bayou 16" FM Phase 8: Hwy 20 12" FM Phase 3: Rocky Bayou 16" FM Phase 9: New College Blvd Lift Station LLY Phase 4: Rocky Bayou 16" FM Phase 10: NVOC 16" FM KE Phase 5: Eglin Main 20" FM & 2 Lift Stations Phase 10a: NVOC 16" FM Alternate Phase 6: Replace 10" FM at Canal with 16" FM WOLVERINE JACKSO N E Y EG LA R LL JC CO ER ROG S STIC VAL A ANDREW 5 Y8 HW ND BO Arbennie Pritcehtt WRF R TW O BE NR GE Proposed Eglin Main Lift Station LEWIS TURNER East County Master Sewer Plan - Page 1 . MAP PROJECTION: Lambert Conformal Conic Projection Stateplane : Flo ida Nor th (0903) NAD 1983(90), NAVD 1988. Existing Phase 3 Phase 6 Phase 9 StreetCenterlines PUBLIC RECORD: This map was created by Okaloosa County GIS and is in the public domain pur uant Phase 1 Phase 4 Phase 7 Phase 10 to Chapter 119 , Florida Statutes. DISCLAIMER: Phase 2 Phase 5 Phase 10a 1 inch = 2,500 feet Okaloosa County h reby expressly disclaims Phase 8 any liability for errors or omissions in these maps, indexes or legends. Packet Pg. 613  85 Y2 UNNAME D HW Proposed College Blvd Lift Station EN BOW DOIN COL LEG E ON N E LC DIANE GARD EVER G R EE CI 48TH E FA NVOC WWTP PARKV IE AS A HART 47TH CEDAR CA GR CH JA S O N E 46TH LY RR I LL CARIE EL FIR PAL M ST CHARLES E EV K OR W NIC K M EE JE D I S VAT LT M CR COOK FF O N A JO BI ND LEWI S GO LF CO URSE AD ON 3R D ER ER HN CAMPBELL AT PARK AM BO S W TE R SO LD TWA EV S Post Office SLift WEE Station MARION DEER CO AN N Existing 14" FM IN RT 2N (To be Abandoned after Phase 9) S K 85 (Hwy 20 & Palm Blvd- VIS BLO SSO M PA D EL Y WA FOREST LY A LL HWY to be abandoned after DPhase E9) 37TH FRIAR TUCK TIN W KE MARQ UET TE WA NG IS PO VA JUNIPER LA KR RHONDA RO A SPEN ELM RUCKEL AB ST WOLVERINE CREE K AN IT HELM S HIL JO NES CEDAR M C KILCULLEN AR E S TR O CE L ALLEN E T 32ND DE EN IOWA R B A C U TT A M S 31ST YS MU Y BALLY D R N IL WA LL VE HO L K RY L GO IL OH R MCEWEN 30TH GA VE GLENDALE LI TH I NO O E 29 RE BOX ER EDG E DYER 28TH M ROC WISE IS KY B BULLOCK IDE AT JO H PINE AY O DREW Rocky Bayou Lift Station 27TH T N SI U MS S LS JA C K SO STIC MAG NO 26TH (To be Abandoned after Phase 9) STEPHEN HIL N L IA HUN KAREN QUINCE BAILEY D KE L FAIRW O O VAL A WHITE JA MARKE T REEVES NT NA 25TH TERESA NORDBERG ME TING LINCOLN BE ED REDWOO D CA S JUDITH DU UN 23RD E AC CHIC H CHRISTY AN IS EDG EWATER RE SEM IN WASHING TON 22ND NC N DR D 22ND D PAL M TO N A PINE HI EW OKALOO SA AN 21ST R 23R BAYO U A AGO NUTMEG Y8 5 20TH RILEY P D KUMQ UAT O LE JUNIPER GLEN 20TH LINDEN HW PINE Phase 1: Rocky Bayou 16" Force Main (FM) MAPLE Phase 7: E ReplaceMEI Meigs-Seminole Lift Station 18TH 19TH Y FIN IEW BA GS LE DG CK E E TV T TEE BISCAYNE E S A LS Phase 2: Rocky Bayou 16" FM NS Phase 8: Hwy 20 12" FM 17TH HARDING WE AN SU VAL PARAISO SAILBOAT SL VIRGI NIA CORAL SYCAMO RE UNION EY OU NELSON POINT OS VINE MICHIG AN Phase 9: New College Blvd Lift Station MAPLE LINDEN BAY Phase 3: Rocky Bayou 16" FM OAK PINE ROSE P OAK SHO RES ST PA RE RA 13TH R AN LANCASTER Y FLORIDA TT KV BAYSHO RE Phase 10: NVOC 16" FM DR AN Phase 4: Rocky Bayou 16" FM IE EMM ETT SHADOW GRAN D 11TH W EW REDBUD PA D E S LM N IDA COON NORTHRIDGE JOHN SIMS MISSI SSIPPI S ID LA AR Phase 5: Eglin Main 20" FM & 2 Lift Stations R Phase 10a: NVOC 16" FM Alternate E N IS V WAT E M K IEW AD PAR 7TH PIN OAK IL N 10 ED Y LO RE LL E AY B LU E Phase 6: Replace 10" FM at Canal with 16"H FM COUG AR TURT W W BAY KE AN W LE SIC Replacement of JASM INE DOLPHIN PO IN G NM I I LY HW MERMeigs-Seminole Lift Station H RANG E LA LD BLUE PINE TAL A LAKESID O I A C HAN PR B ER M U D Y 20 TS T CL UB CA YACH HICKORY CHOCTAWHATCHEE LID CEDAR C ER PINE LA O A WI N E R TT D CIL WA IB T PU R B D AU EA East County Master Sewer Plan - Page 2 . N MAP PROJECTION: Lambert Conformal Conic Projection Stateplane : Flo ida Nor th (0903) NAD 1983(90), NAVD 1988. Existing Phase 3 Phase 6 Phase 9 StreetCenterlines PUBLIC RECORD: This map was created by Okaloosa County GIS and is in the public domain pur uant Phase 1 Phase 4 Phase 7 Phase 10 to Chapter 119 , Florida Statutes. DISCLAIMER: Phase 2 Phase 5 Phase 10a 1 inch = 2,500 feet Okaloosa County h reby expressly disclaims Phase 8 any liability for errors or omissions in these maps, indexes or legends. Packet Pg. 614 Packet Pg. 615 Packet Pg. 616 Packet Pg. 617 Packet Pg. 618 Packet Pg. 619 Packet Pg. 620 Packet Pg. 621 Packet Pg. 622 Packet Pg. 623 Packet Pg. 624 Packet Pg. 625  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: [WS] Waste Management's Springhill Landfill - Agreement for Leachate DEPARTMENT: Water and Sewer BCC DISTRICT: 3 STATEMENT OF ISSUE: OCWS staff requests BCC approval for the Chairman to execute an agreement with Waste Management of Leon County, Inc. for the County to receive, treat, and dispose of landfill leachate. BACKGROUND: Waste Management's Springhill Landfill is a Class I landfill located at 4954 Hwy. 273, Campbellton, Florida. The landfill generates a byproduct from its underdrain system. This byproduct is commonly known as leachate. Waste Management of Leon County, Inc. currently provides a service to the landfill to receive, transport, and dispose of the leachate. This product must be disposed of in such a way that complies with relative local, state, and federal regulations. The Arbennie Pritchett Water Reclamation Facility (APWRF) is capable of receiving (at the digester), treating, and disposing of this leachate, at a capacity not to exceed 19,500 gallons per day. The County's charge to Waste Management for this leachate is $0.10 per gallon. This charge takes into consideration the risk to the plant and our incremental cost increase of treating and disposing of the leachate. Therefore, staff wishes to enter into an agreement with Waste Management of Leon County, Inc. for OCWS to receive, treat, and dispose of the Springhill Landfill leachate. This agreement provides a valuable service to the landfill by complying with all relative local, state, and federal regulations, and provides a safe and reliable means of disposal that serves the interest of both parties as well as the health and safety of the public. For OCWS, the agreement provides revenue. The agreement is attached for your review, along with the County Contract Review Coordination Sheet and their Certificate of Insurance. OPTIONS: Approve or deny. RECOMMENDATIONS: Staff recommends BCC approval for the Chairman to execute the agreement with Waste Management of Leon County, Inc. for the County to receive, treat, and dispose of landfill leachate. RECOMMENDED BY: Packet Pg. 626 APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 627 Packet Pg. 628 Packet Pg. 629 Packet Pg. 630 Packet Pg. 631  CONTRACT & LEASE INTERNAL COORDINATION SHEET Contract/Lease Number: Tracking Number:_____________ U)z43t Contractor/Lessee Name: ._ a(- Grant Funded: YES NO7 PurposeQa4J1iQ Date/Term !1I3I)1l:1. 1.LI GREATER THAN $50,000 Amount: 1(i /_- j9J. 2. GREATER THAN $25,000 Department: Cos . LII $25,000 OR LESS Dept. Monitor Name:(?,tXa....L IWCA-tI 11&'_/ Document has been reviewed and includes any attach ts or exhibits. Purchasing Review Risk Management Review APPrnve te 7 ,4Je$ Date: Ih 4 Riskanager or designee County Attorney Review proved as written- D a te: 4\Lf "Tlft~rw Following Okaloosa County approval: I Contracts & Grants I Document has been received: Date: Contracts & Grants Manager Packet Pg. 632 Joanne Kublik From: Zan Fedorak Sent: Tuesday, March 18, 2014 4:27 PM To: Joanne Kublik Subject: FW: Waste Management/Spinghill Agreement - follow-up on Contract Review Attachments: County Contract Review Coordination Sheet.pdf; Okaloosa Co WWTP_DRAFT Disposal Agreement_OCWS Revisions.docx Has this been forwarded to legal other than by this email? If not, we may need to make Greg aware. Thanks Zan From: Mark Wise Sent: Wednesday, March 12, 2014 3:24 PM To: John Dowd; Gary Real; Joanne Kublik; Jack Allen; Zan Fedorak Cc: Darren L. Alford; Kimberly Kilpatrick; Jeff Littrell Subject: Waste Management/Spinghill Agreement - follow-up on Contract Review Contract Review Team, We received the signed Coordination Sheet (attached) on 12/16/2013 for this proposed contract with Waste Management, to set a price for them to pay us to take their leachate from their Springhill landfill. After that approval, we sent the agreement to them to execute, but heard nothing for months. In the past week or so, they have come back to us to execute the agreement, but requested we revise some language in the agreement. They simply wanted us to define some terms better. We have therefore tweaked some of the technical language and updated the contact info for Waste Management. As this is wastewater/technical info, I doubt it pertains to Purchasing, Risk Management, and Legal, BUT I want to send it back to you for review just in case. Please review the highlighted changes in the attached MS Word version, and let us know if you have any objections or comments by Friday March 21. We will then prepare the agenda request for the Apr 1 BCC meeting. As always, please call me if you want to discuss. Thanks, Mark Wise, P.E. Deputy Director Okaloosa County Water & Sewer (850) 685-0297 Please note: Due to Florida's very broad public records laws, most written communications to or from County employees regarding County business are public records, available to the public and media upon request. Therefore, this written e-mail communication, including your e-mail address, may be subject to public disclosure. From: Darren L. Alford Sent: Wednesday, March 12, 2014 9:01 AM To: Joanne Kublik Cc: Mark Wise Subject: FW: Waste Management (Spinghill) Joanne, Packet Pg. 633 Concerning the attached documents for the Springhill contract, I never received a reply from Springhill until recently. Before that we speculated they were no longer interested. However, they have recently petitioned for renewal. They made necessary revisions to the original contract( Waste Management Leachate clean updated) and in doing this, we also noticed areas of the contract needing modification. The latest contract is attached, which we(OCWS) and Springhill has agreed upon. Please look at the latest contract (Okaloosa Co WWTP DRAFT disposal Agreement OCWS Revision) and confirm our revisions/modifications are legit. We will probably need to take it through the review process again. Thank you for your consideration in this, and if I can provide additional info, let me know. From: Darren L. Alford Sent: Wednesday, December 18, 2013 1:48 PM To: khinson@wm.com Cc: Mark Wise; Jeff Littrell Subject: FW: Waste Management (Spinghill) Mr. Hinson, In order for Okaloosa County to continue receiving leachate from the Springhill landfill, either on a consistent or intermediate basis, the attached documentation needs to be reviewed and completed by Waste Management for a 2nd contract extension one year term. As stated below by our Deputy Director, If you are still interested, please execute 3 originals and return. Thank you for your consideration, Darren Alford Wastewater Operations Manager Okaloosa County Water & Sewer (850)651-7133 From: Mark Wise Sent: Tuesday, December 17, 2013 5:33 PM To: Darren L. Alford Cc: Jeff Littrell Subject: Waste Management (Spinghill) Darren, County Contract Review is complete on the Waste Management contract. Please email them 3 copies of the attached MS Word doc, and have them execute 3 originals IF they are even still interested. Thanks, Mark Wise, P.E. Deputy Director Okaloosa County Water & Sewer (850) 651-7502 Packet Pg. 634 Please note: Due to Florida's very broad public records laws, most written communications to or from County employees regarding County business are public records, available to the public and media upon request. Therefore, this written e-mail communication, including your e-mail address, may be subject to public disclosure. Packet Pg. 635  " RECEtVD DEC iO CONTRACT & LEASE INTERNAL COORDINATIONIHEET Coñfrac$/lease Number Trocking Number LQ Contractor/Lessee Name J4 1)C41 Grni ffinded YEL.. Nook éyrpq5e Li4 1Ma d1eflrm iJ4*±- J84I 1 0 cREAER ThiAN $50000 AmbJP.1f 44Pd- 2 0 GREATER THAN $25000 Deportment 3 Li $25,000 OR LESS D$t tonftor Nane J4f-# ocument has been reviewed ond (nJudes any aftoc - Y cP n or exhibits, Purchasing Review or sigri e. Risk Management RevieW Approv as w n Date • ny AI!Rmey Review •• •. V We cooity , Aftomey, - - Foilowtng Okaloosa County approval , £ Grants Document has b9en recelveØ' H •,. : •: Packet Pg. 636  AGREEMENT FOR WASTE WATER DISPOSAL AND TREATMENT Okaloosa County Water and Sewer (COUNTY) takes pridc in the operation of our Wastewater Treatment aEi44ies The County wishes to enter into an agreement to receive-ad-treat, and dispose landfill leachate from Waste Managementof Leon County, Inc.-'s Springhill Regional Landfill (CONTRACTOR). The scope of which is as follows: PREMISES UPON WHICH CONTRACT SERVICES ARE TO BE PERFORMED The County COUNTY agrees to allow Wete-Ma+egeReRtCONTRACTOR to deliver up to 19,500 gallons of leachate per day to the Arbennie Pritchett Water Reclamation Facility (APWRF), Monday through Friday (5 days per week, between 7am - 3pm) for treatment and disposal. Wiste -M-a+gcmcntCONTRACTOR is required to comply with all the provisions of Okaloosa County Ordinance No. 12-14 hereinafter called "Water and Sewer Ordinance". Terms of Contract. The CONTRACTOR shall pay the COUNTY ten cents ($0.10) per gallon for treatment and disposal of the leachate. The CONTRACTOR will discharge the leachate at the point designated by the COUNTY, located at the APWRF in Fort Walton Beach, Florida, after visual inspection and ph testing of each load by the COUNTY. Jhe CONTRACTOR will provide the COUNTY on a civarterly basis, or as [Formatted: Font color: Park Red often as the Waste Management operating permit issued by the Florida Dept. of Environmental Protection requires, the analytical report of analysis required to be performed on the leachate. The term of this Agreement shall be for one (1) year commencing with an effective date of January 1, 2014 and ending December 31, 2014. This Agreement -shall automatically renew for additional periods of one (1) year unless either party gives at least ninety (90) days written notice to the other party of its intent to terminate the Agreement prior to the expiration of the then current term. Jhe APWRF is a biological Formatted: Font color: Park Red nutrient removal process which operates, under a controlled environment to maintain a consistent Formatted: Font color: Park Red balance of microorganism Any introduction of pollutant(s) or toxin(s)which could harm the biological -( Formatted: Font color: Park Red process and put the APWRF out of compliance with its' operating permit is considered "plant upset". • [Formatted: Font color: Park Red Therefore, the Okaloosa County Water and ScwcrCOUNTY reserves the right to reject leachate or to revise the conditions of this contract in the event that such changes are needed to correct "plant upset" or "pass through" of pollutant determinedpbscrved by the COUNTY. The terms and conditions of this -. -{ Formatted: Font color: Park Red - -. contract may be subject to modification by the COUNTY during the terms agreed upon, should the -1 Formatted: Font color: Park Red COUNTY deem it necessary e.c-for the benefit of the APWRF3ny reason. - 1_Formatted: Font color: Park Red - "Plant upset" and "pasthrouh"rcciuire ci car definition and context incc each of thcsc conditions - - ( Formatted: Font color: Blue allow the County to modify the contract terms. The blanket provision of "modification by the County for any reason" is very broad. In each case there should be some advance notification defined (ie. 10 or 15 days) of the County's desire to change the terms. Termination of Contract by COUNTY. The COUNTY may terminate this contract at any time by giving the CONTRACTOR thirty (30) days notice in writing of such termination. Packet Pg. 637 Termination of Contract by CONTRACTOR. The CONTRACTOR may likewise terminate this contract for cause by giving the COUNTY thirty (30) days notice in writing for cause and allowing the COUNTY to correct any deficiency within thirty (30) days. Special Provisions Independent Contractor Status. It is understood and agreed that the CONTRACTOR is an Independent Contractor in the legal sense of that term. The CONTRACTOR shall obtain and maintain all workers compensation insurance necessary, abide by all governmental regulations and laws, obtain all permits and licenses required by law and shall provide all of the tools and equipment at the CONTRACTOR'S own expense needed to perform this contract. Insurance. CONTRACTOR agrees to provide workers' compensation, unemployment insurance, public liability insurance, auto insurance, and any other insurance required by law. Okaloosa County Board of County Commissioners shall be listed as coinsured on the same insurance certificate. The COUNTY will not be responsible for the-pdamage to any of the CONTRACTORS' equipment while performing during the performance of this contract. Definitions. When used in this contract, the following words and terms have the meanings as follows: "The CONTRACTOR" or "CONTRACTOR" shall mean Waste Management, of Leon County, Inc. —Springhill "The COUNTY" or "COUNTY" shall mean the Water and Sewer Department of the Okaloosa County Board of County Commissioners. Interpretation and Construction of Contract. This contract shall be construed according to the laws of the State of Florida. The captions and titles appearing before the various parts of this contract and paragraphs thereof shall not be controlling in and shall not affect the construction of this contract. Prohibition if Subcontracted Services. Contractor is to perform all services as required under this agreement without entering into subcontracted services with any third party without prior approval of authorized COUNTY official. Authorized official shall be the Director of Water and Sewer or other County employee as designated. Assignment Prohibited. This contract may not be assigned by either party without the written consent of the other party. Indemnity by Contractor. The CONTRACTOR shall indemnify the COUNTY and hold it harmless against all claims for personal injury and property damage caused by the CONTRACTOR in the performance of this contract. The CONTRACTOR shall maintain appropriate insurance coverage to insure this provision. Packet Pg. 638 Representatives. The authorized representative of the County COUNTY shall be: Darren Alford Okaloosa County Water & Sewer 250 Roberts Blvd., Ft. Walton Beach, FL 32547 E-Mail: dlalford@co.okaloosa.fl.us 350-651-7133 The authorized representative for W&te-Mngcmcntthe CONTRACTOR shall be: Kevin Hinon Calvin Wilkinson Waste Management of .Lepp iin1y Inc. 4945 Hwy 273 Campbellton, F132426FL 32426 E-mail: khinson@wm.com cwilkinson@wm.com 850-263-5946 350 263 7100e9S0, 350 253 4195 All notices required by this agreement shall be written to the representative listed above with a courtesy copy to the following: Jack Allen Contracts and Leases Coordinator Okaloosa County Purchasing Department 602-C North Pearl Street Packet Pg. 639  Crestview Fl 32536 850-689-5960/850-689-5998 (FAX) E-Mail: iallen@co.okaloosa.fl.us IN WITNESS WHEREOF, the Chairman of the Board of County Commissioners, by authority vested in him, has hereunto subscribed his name on behalf of the County of Okaloosa, Florida, the Owner, and the said Jeff Macy David Myhan has hereto fixed signature, the day and year above written. WITNESS: Waste Management of Leon County, Inc. CONTRACTOR BY Kevin Hincon David Myhan, Area Vice President STATE OF FLORIDA COUNTY OF OKALOOSA This contract is accepted this day of ,2014 and is effective upon execution. ATTEST: COUNTY OF OKALOOSA, FLORIDA BY Gary Stanford Charles K. Windes, Jr., Chairman Deputy Clerk of Court Packet Pg. 640  DATE (MM/DD/YYYY) CERTIFICATE OF LIABILITY INSURANCE 1/1/2015 3/24/2014 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). CONTACT PRODUCER LOCKTON COMPANIES, LLC NAME: 5847 SAN FELIPE, SUITE 320 PHONE (A/C, No, Ext): FAX (A/C, No): HOUSTON TX 77057 E-MAIL 866-260-3538 ADDRESS: INSURER(S) AFFORDING COVERAGE NAIC # INSURER A : ACE American Insurance Company 22667 INSURED WASTE MANAGEMENT HOLDINGS, INC. & ALL AFFILIATED, INSURER B : Indemnity Insurance Co of North America 43575 1300299 RELATED & SUBSIDIARY COMPANIES INCLUDING: INSURER C : ACE Property & Casualty Insurance Co 20699 SPRINGHILL REGIONAL LANDFILL 4945 HIGHWAY 273 INSURER D : CAMPBELLTON FL 32426 INSURER E : INSURER F : COVERAGES FLCAMPBE CERTIFICATE NUMBER: 12847635 REVISION NUMBER: XXXXXXX THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDL SUBR POLICY EFF POLICY EXP LTR TYPE OF INSURANCE INSR WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) LIMITS A GENERAL LIABILITY Y Y HDO G2732924A 1/1/2014 1/1/2015 EACH OCCURRENCE 5,000,000 $ DAMAGE TO RENTED X COMMERCIAL GENERAL LIABILITY PREMISES (Ea occurrence) 5,000,000 $ CLAIMS-MADE X OCCUR MED EXP (Any one person) $ XXXXXXX X XCU INCLUDED PERSONAL & ADV INJURY $ 5,000,000 X ISO FORM CG 00011207 GENERAL AGGREGATE $ 6,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ 6,000,000 PRO- POLICY X JECT X LOC $ COMBINED SINGLE LIMIT A AUTOMOBILE LIABILITY Y Y MMT H08816025 1/1/2014 1/1/2015 (Ea accident) $ 1,000,000 X ANY AUTO BODILY INJURY (Per person) $ XXXXXXX X ALL OWNED AUTOS SCHEDULED AUTOS BODILY INJURY (Per accident) $ XXXXXXX X HIRED AUTOS X NON-OWNED AUTOS PROPERTY DAMAGE (Per accident) $ XXXXXXX X MCS-90 $ XXXXXXX C X UMBRELLA LIAB X OCCUR Y Y XOO G27054961 1/1/2014 1/1/2015 EACH OCCURRENCE $ 15,000,000 EXCESS LIAB CLAIMS-MADE AGGREGATE $ 15,000,000 DED RETENTION $ $ XXXXXXX WORKERS COMPENSATION WC STATU- OTH- B AND EMPLOYERS' LIABILITY Y/N Y WLR C47876345 (AOS) 1/1/2014 1/1/2015 X TORY LIMITS ER A WLR C47876357 (AZ,CA&MA) 1/1/2014 1/1/2015 ANY PROPRIETOR/PARTNER/EXECUTIVE E.L. EACH ACCIDENT $ 3,000,000 A OFFICER/MEMBER EXCLUDED? N N/A SCF C47876369 (WI) 1/1/2014 1/1/2015 $ 3,000,000 (Mandatory in NH) E.L. DISEASE - EA EMPLOYEE If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ 3,000,000 A EXCESS AUTO Y Y XSA H08816013 1/1/2014 1/1/2015 COMBINED SINGLE LIMIT LIABILITY $9,000,000 (EACH ACCIDENT) DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES /(Attach ACORD 101, Additional Remarks Schedule, if more space is required) BLANKET WAIVER OF SUBROGATION IS GRANTED IN FAVOR OF CERTIFICATE HOLDER ON ALL POLICIES WHERE AND TO THE EXTENT REQUIRED BY WRITTEN CONTRACT WHERE PERMISSIBLE BY LAW. CERTIFICATE HOLDER IS NAMED AS AN ADDITIONAL INSURED (EXCEPT FOR WORKERS’ COMP/EL) WHERE AND TO THE EXTENT REQUIRED BY WRITTEN CONTRACT. CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. 12847635 AUTHORIZED REPRESENTATIVE COUNTY OF OKALOOSA, FLORIDA 302 N. WILSON ST. - SUITE 302 CRESTVIEW FL 32536 ACORD 25 (2010/05) © 1988-2010 ACORD CORPORATION. All rights reserved The ACORD name and logo are registered marks of ACORD Packet Pg. 641  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Don Turner SUBJECT: SO New Building - Design Services Contract DEPARTMENT: Facility Maintenance BCC DISTRICT: All STATEMENT OF ISSUE: Request BCC approval of the negotiated contract for Design Services for the new Sheriff's Building in Shalimar. BACKGROUND: On December 17th, 2013, the Board authorized advertising an RFQ for design services for the Sheriff's proposed new building in Shalimar. The proposal period ended and the proposals received by County Purchasing were distributed to the members of the Selection Committee. The Selection Committee members met on February 11, 2014 and selected DAG as the top choice from among those submitting proposal. At the BCC meeting held on February 18th, 2014 the Board authorized staff to enter into negotiations with DAG for the Design Service Contract on the proposed new Sheriff's building. Negotiations were conducted and DAG agreed to perform all required Design Services (draft contract attached) for the sum of $80,000. RECOMMENDATIONS: (FM) Request BCC approval of the negotiated contract for Design Services in the amount of $80,000 for the new Sheriff's Building in Shalimar. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 642 Packet Pg. 643 Packet Pg. 644 Packet Pg. 645 Packet Pg. 646 Packet Pg. 647 Packet Pg. 648 Packet Pg. 649 Packet Pg. 650 Packet Pg. 651 Packet Pg. 652 Packet Pg. 653 Packet Pg. 654 Packet Pg. 655 Packet Pg. 656 Packet Pg. 657 Packet Pg. 658 Packet Pg. 659 Packet Pg. 660 Packet Pg. 661 Packet Pg. 662 Packet Pg. 663 Packet Pg. 664 Packet Pg. 665 Packet Pg. 666 Packet Pg. 667 Packet Pg. 668 Packet Pg. 669 Packet Pg. 670 Packet Pg. 671 Packet Pg. 672 Packet Pg. 673 Packet Pg. 674 Packet Pg. 675 Packet Pg. 676 Packet Pg. 677 Packet Pg. 678 Packet Pg. 679 Packet Pg. 680 Packet Pg. 681 Packet Pg. 682 Packet Pg. 683 Packet Pg. 684 Packet Pg. 685 Packet Pg. 686 Packet Pg. 687 Packet Pg. 688 Packet Pg. 689 Packet Pg. 690 Packet Pg. 691 Packet Pg. 692 Packet Pg. 693 Packet Pg. 694 Packet Pg. 695 Packet Pg. 696 Packet Pg. 697 Packet Pg. 698 Packet Pg. 699 Packet Pg. 700 Packet Pg. 701 Packet Pg. 702 Packet Pg. 703 Packet Pg. 704 Packet Pg. 705 Packet Pg. 706 Packet Pg. 707 Packet Pg. 708 Packet Pg. 709 Packet Pg. 710 Packet Pg. 711 Packet Pg. 712 Packet Pg. 713 Packet Pg. 714 Packet Pg. 715 Packet Pg. 716 Packet Pg. 717 Packet Pg. 718 Packet Pg. 719  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Roland Sims SUBJECT: Approval of Fiscal Year 2014 4th Quarter Calendars DEPARTMENT: County Administrator BCC DISTRICT: All STATEMENT OF ISSUE: In order for Public Hearings, Workshops and Employee Award presentations to be scheduled for the 4th Quarter of FY 2014, meeting schedules need to be approved and published. BACKGROUND: The attached calendars for 4th Quarter of FY 2014 (July - September) were prepared by County Administrator’s staff in March 2014. OPTIONS: Approve the attached calendars as presented or direct staff to add or change topics and/or meeting dates as needed. RECOMMENDATIONS: Approve the attached calendars. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 720  Board of County Commissioners Meetings & Workshops July 2014 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY 1 2 3 4 5 BCC Meeting Independence 6:00 p.m., Crestview Day Holiday Courthouse 6 7 8 9 10 11 12 13 14 15 16 17 18 19 BCC Meeting 8:30 a.m., W&S Bldg. Fort Walton Beach 20 21 22 23 24 25 26 27 28 29 30 31 Packet Pg. 721  Board of County Commissioners Meetings & Workshops August 2014 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY 1 2 3 4 5 6 7 8 9 BCC Meeting 8:30 a.m., Crestview Courthouse 10 11 12 13 14 15 16 17 18 19 20 21 22 23 BCC Meeting 6:00 p.m., W&S Bldg. Fort Walton Beach 24 25 26 27 28 29 30 31 Packet Pg. 722  Board of County Commissioners Meetings & Workshops Sept 2014 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY 1 2 3 4 5 6 Labor Day BCC Meeting Holiday 6:00 p.m., Crestview Courthouse 7 8 9 10 11 12 13 14 15 16 17 18 19 20 BCC Meeting 8:30 a.m., W&S Bldg. Fort Walton Beach 21 22 23 24 25 26 27 28 29 30 Packet Pg. 723  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Rick Owen SUBJECT: Rules of Procedure for BCC meetings DEPARTMENT: County Administrator BCC DISTRICT: All STATEMENT OF ISSUE: The Board needs to give consideration to and approve the attached resolution pertaining to rules of procedure for BCC meetings. BACKGROUND: Staff and the County legal team have developed a resolution to address rules of procedure for meetings of the Okaloosa County Board of County Commissioners as requested. RECOMMENDATION: Staff recommends approval of the resolution addressing rules of procedure for BCC meetings. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 724  RESOLUTION NO. 2014-__ A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY, FLORIDA, ADOPTING RULES OF PROCEDURE FOR MEETINGS OF THE OKALOOSA COUNTY BOARD OF COUNTY COMMISSIONERS; AND PROVIDING FOR AN EFFECTIVE DATE. NOW THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Okaloosa County, Florida, as follows: SECTION 1: PURPOSE. The purpose of these Rules of Procedure (“Rules”) is to provide for the smooth and orderly functioning of the business of the Board of County Commissioners (“Board”) and to provide a basis for resolving questions of procedure when they arise. SECTION 2: APPLICABILITY. These Rules shall govern all official meetings of the Board. The members of the Board, County staff, and the public shall adhere to these Rules. SECTION 3: RULES OF ORDER. To the extent they are not in conflict with these Rules, Roberts Rules of Order Revised shall serve as a guide to official meetings of the Board. Accordingly, no action taken by the Board shall be deemed void or invalid because of the failure to adhere to Roberts Rules of Order Revised. SECTION 4: PRESIDING OFFICER. The Chairman shall preside at all meetings of the Board. In the absence of the Chairman, the Vice-Chairman shall preside. In the absence of the Chairman and Vice-Chairman, a presiding officer shall be selected by a majority vote of those Commissioners present. The presiding officer of the Board shall have the following functions: a. Opening the meeting and calling the meeting the order, having ascertained that a quorum is present. b. Announce the business to come before the Board, in accordance with the prescribed order of business. c. Recognizing Commissioners to speak. d. Recognizing members of the public or staff to speak. e. Deciding all questions of order. f. Preserving decorum and order, an in case of disturbance or disorderly conduct in the Commission Chambers, may cause the same to be cleared or cause any disruptive individual to be removed in order to maintain and preserve decorum and civility. 1 Packet Pg. 725  g. Adjourning meetings when there is a sudden emergency affecting the safety of the Board and others. The decision of the presiding officer shall stand unless reversed by a majority vote of the members present after the proper motion has been made and seconded to reverse such a decision. SECTION 5: RULES OF DEBATE. a. Decorum. 1. Every Commissioner desiring to speak should address the Chairman, and upon said recognition by the Chairman, should confine discussion to the question under debate. 2. Commissioners shall refrain from: attacking another individual’s motives; speaking adversely on a prior motion not pending; speaking while another Commissioner is speaking; speaking against their own motions; and generally disturbing the Board. 3. A Commissioner once recognized should not be interrupted when speaking unless the Commissioner is being called to order. The Commissioner should then cease speaking until the question of order is determined, without debate, by the Chairman. If in order, said Commissioner shall be at liberty to proceed. 4. A Commissioner shall be deemed to have yielded the floor when he/she has finished speaking. Commissioners may claim the floor only when recognized by the Chairman. b. Motions. 1. A motion and a second to the motion shall precede any action on an agenda item. A second merely implies that the Commissioner agrees that the motion should come before the Board and not that he/she necessarily favors the motion. 2. Types of Motions: a. Main Motion: brings a matter before the Board. b. Divide the Question: divides a motion into two or more separate motions. c. Amend: modifies the main motion, in whole or in part. d. Postpone to a Certain Time: state the time the motion or agenda item will be resumed. e. Postpone Indefinitely: disposes of a question without bringing it to a direct vote. 2 Packet Pg. 726  f. Close Debate: closes debate on the motion (same as “calling the question”) 3. Steps in handling a motion: a. Any Commissioner wishing to make a motion shall address the Chairman. Once recognized, the Commissioner shall state the motion. b. Another Commissioner may second the motion. c. The Chairman restates the motion, thus placing it before the Board for consideration. d. Discussion ensues. e. The Chairman takes and announces the vote. 4. If the Chairman wishes to put forth or second a motion, he/she shall relinquish the Chair to the Vice-Chairman until the main motion, on which he/she spoke, has been disposed. 5. An amendment to a motion must be germane, that is, it must relate to the substance of the main motion. An amendment may not introduce an independent question, and an amendment may not serve as the equivalent of rejecting the original motion. c. Debate. 1. Every Commissioner has the right to speak on every motion before it is finally acted upon. 2. All discussion must be confined to the immediately pending question and to whether or not it should be adopted. 3. No Commissioner may speak twice on the same motion as long as any other Commissioner who has not spoken on the motion desires to do so. SECTION 6: VOTING. a. Voting. Unless otherwise directed by the Chairman, all votes shall be taken by voice or by electronic vote, if available. b. Tabulating the Vote. The Chairman shall tabulate the votes and announce the results. 3 Packet Pg. 727  c. Duty to Vote. Every Commissioner must vote, unless they publicly stated that they are abstaining from voting due to a conflict of interest pursuant to Section 112.3143, Florida Statutes. If any Commissioner declines to vote “aye” or “nay” by voice or electronic vote, his/her silence or inaction shall be counted as an “aye” vote. d. Changing Vote. Any Commissioner may change his/her vote before the next item is called for consideration, or before a recess or adjournment is called, whichever occurs first, but not thereafter. e. Majority Vote; Supermajority Vote; Tie Vote. The passage of any motion, policy, ordinance or resolution shall require the affirmative vote of at least the majority of the Board who are present and eligible to vote. If a supermajority vote is required by Florida Statutes, this shall require the affirmative vote of a majority plus one member who are present and eligible to vote. SECTION 7: PERIODIC REVIEW. The Board shall periodically review these Rules and adopt any amendments deemed necessary. Amendments to these Rules shall be approved and adopted by the Board in the form of a resolution. SECTION 8: EFFECTIVE DATE These Rules shall become effective immediately upon adoption by the Board and shall supersede all other rules previously adopted by the Board. ADOPTED this ____ day of __________ 2014. BOARD OF COUNTY COMMISSIONERS OKALOOSA COUNTY, FLORIDA By: ______________________________ KELLY WINDES, CHAIRMAN ATTEST: By: ________________________________ Deputy Clerk 4 Packet Pg. 728