Okaloosa County BOCC — July 1, 2014 — reading text

order for the discontinuance of the routes to coincide with the end of the current Fiscal Year (September 30), the hearing must be held no later than July 30, with the July 15 meeting being the last regularly scheduled meeting of July. Notices of the revised fare and route eliminations and the implementation date will be placed in all public transit vehicles and published in the Northwest Florida Daily News. RECOMMENDATION: The Department of Growth Management recommends that the Board conduct a public hearing to receive public input regarding the proposed discontinuance of transit routes 1, 2, 3, 4, 5, 14, 20, 30, 32, and 33. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 266  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: July 1, 2014 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Eglin AFB Utilities Privatization - Update & Authorize Staff to Negotiate DEPARTMENT: Water and Sewer BCC DISTRICT: All STATEMENT OF ISSUE: OCWS is providing an update on Eglin AFB Utilities Privatization (UP) and requesting that the BCC authorize staff to negotiate the proposal/contract, which may result in OCWS bringing a final proposal and contract to the BCC in the future for approval and execution. Eglin UP is for the potable water distribution system and the wastewater collection system. Please note that Eglin UP does not include wastewater treatment & disposal - OCWS has a separate contract for the treatment & disposal of wastewater from Duke Field, Eglin Main Base, and Camp Rudder. BACKGROUND: For an overview of Eglin UP and Defense Logistic Agency's (DLA) Request for Proposal (RFP), see the attached BCC Agenda Request from 2/5/2013 and the accompanying PowerPoint slides. Per the 2/5/2013 BCC Meeting, the County submitted a proposal to DLA in March 2013. The proposal on the 50-year contract is approximately $14M/year (2014 dollars) for the ownership, operations, maintenance, capital projects (engineering, construction, etc.), management, and financing of UP. Since the submission of the proposal, the following events have occurred: - Defense Contract Audit Agency (DCAA) conducted an audit on OCWS in April 2013. - Defense Contract Management Agency (DCMA) conducted an audit on OCWS in July 2013. - DLA extended the Period of Validity on 1/17/2014 to 4/29/2014. - OCWS conducted a "UP Workshop" on 4/3/2014 with the County's UP Team - see attached agenda for attendees and discussion topics. - DLA extended the Period of Validity on 4/25/2014 to 10/31/2014. - DLA issued RFP Amendment 9 on 6/4/2014. This amendment revises some of the terms, conditions, and infrastructure inventory. - DLA issued three (3) Negotiation Messages on 6/4/2014 pertaining to: water only proposal, wastewater only proposal, water/wastewater combined proposal. In this correspondence, DLA notified Okaloosa County that "negotiations are hereby opened and are expected to last through October 1, 2014". At this time, DLA has not yet asked for a revised price/proposal, but they plan on going back and forth with negotiations between now and 10/1/2014. Some negotiations will be in writing while others will be face to face or by phone. In responding to DLA, it will be a fully coordinated effort. Responses will be drafted and closely coordinated with the following UP Team: County Administrator, the County legal team, OCWS senior leadership, Constantine Engineering (under contract for program manager/engineering), Environmental Services Group (under contract for Packet Pg. 267 contract operations), Burton & Associates (OCWS rate consultant), First Southwest Company (County Financial Advisor), and other County departments & constitutional offices - Purchasing, HR, Risk Management, Finance, and Contracts & Grants. Because of the expected substantial amount of back and forth effort, and knowing that time will be of the essence with each response, staff are requesting BCC authorization for staff to respond to DLA's requests and to negotiate the proposal. The current version of the terms and conditions of the contract are already established in DLA's RFP, as amended. Those terms and conditions will be revised per the exceptions we took in the County's proposal and per the negotiation process. The final proposal and contract will come back to the BCC in the future for approval and authorization for the Chairman to execute it. Throughout negotiations, OCWS staff will stay in close coordination with the other members of the UP Team as listed above. OPTIONS: Approve or deny. RECOMMENDATIONS: Staff recommends that the BCC authorize staff to negotiate the proposal/contract. Pending negotiations and the Federal Government's timetable, OCWS will bring a final proposal and contract back to the BCC in the future for approval and execution. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 268  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: February 5, 2013 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Eglin AFB Utilities Privatization (UP) Proposal DEPARTMENT: Water and Sewer BCC DISTRICT: All STATEMENT OF ISSUE: OCWS is requesting BCC approval to submit a proposal for Eglin AFB Utilities Privatization (UP) and authorize the Chairman to sign the proposal/contract offer documents on behalf of Okaloosa County Water & Sewer. Eglin UP is for the potable water distribution system and the wastewater collection system. Please note that Eglin UP does not include wastewater treatment & disposal - OCWS has a separate, independent contract for the treatment & disposal of wastewater from Duke Field, Eglin Main Base, and Camp Rudder. A PowerPoint file is attached which gives a broad overview of Eglin AFB Utilities Privatization. BACKGROUND: In accordance with 10 U.S.C. §2688 - Utility Systems: Conveyance Authority, The Defense Energy Support Center (DESC) and/or Defense Logistics Agency (DLA) seek to identify and obtain information from responsible sources in connection with the privatization of the water distribution and wastewater collection systems at Eglin Air Force Base (AFB), Florida. Privatization is defined as the conveyance of a utility system to a municipal, private, regional, district, or cooperative utility company or other entity. The conveyance may consist of all right, title, and interest of the United States in the utility system. The expected term of a contract is 50-years. On June 7, 2011, the BCC gave direction to OCWS to pursue the above-mentioned Eglin AFB Utilities Privatization (UP), where OCWS would serve as the system owner (SO) and we would assemble a team, composed of a contract operations company and a program manager/engineering firm. On September 6, 2011, the BCC approved the selection of Environmental Services Group (ESG) for contract operations and The Constantine Group (TCG) for program management/engineering. This approval was based on a recommendation from a selection committee. Since then, OCWS has entered into Master Services Agreements (MSAs) with ESG and TCG. The purpose of these MSAs is to setup a contract that allows these two companies to work with OCWS to prepare the Eglin UP proposals after DLA issues the Request for Proposal (RFP). The proposals are very voluminous and complex - it is a tremendous amount of work to be done in a relatively short period of time. Four (4) volumes will be required for the water distribution system, and four (4) volumes will be required for the wastewater collection system. In addition, two (2) more volumes are required to make a joint proposal for both water and wastewater. All in all, the total proposal is about 12” thick. The MSAs for ESG and TCG stipulate that they will prepare the proposals for the County, at no cost to the County. If the County is successful and is selected for Eglin UP, ESG and TCG will enter into a 5-year contract with OCWS. There is a great amount of time and risk incurred by ESG and TCG, because there is the possibility that UP will not be awarded at all, due to the federal budget situation. It is also possible that the UP may be awarded to some other proposer. If/when the Packet Pg. 269 Eglin UP was to be awarded to the County, then ESG and TCG would still not be compensated for their work in putting together the proposal. At that time, the County would negotiate rates with ESG and TCG for a 5-year contract. If the County desires to utilize ESG and/or TCG beyond the 5-year period, the County has the option of nine 5-year renewals. Again, per the MSAs, under no scenario will ESG and/or TCG be compensated by the County for their work preparing the proposals. On Sept 28, 2012, DLA issued the RFP for privatization of the water distribution system and wastewater collection system of Eglin AFB. Since then, OCWS, ESG, TCG, and their sub- consultants - CDM-Smith, HDR, Veterans Consulting & Contracting, and Gustin, Cothern, & Tucker - have been working diligently on a proposal, which is due to DLA on or before February 19. Of the 10 volumes being submitted, Volume 3 of the water and Volume 3 of the wastewater serve as the contract documentation. This contract documentation (Volume 3) is attached for your review. All the other volumes are specific to water and sewer. The infrastructure-related topics include information such as, but not limited to the following: information about OCWS, past performance documentation, references, transition plan, emergency response plan, service interruption plan, catastrophic loss plan, O&M/Quality Management Plan, Initial Systems Deficiency Corrections (ISDCs) plan, Initial Repair and Replacement (R&R) plan, 50-year CIP for R&R, and financial information. Volume 3 was prepared by HDR, who has been successfully awarded prior UP contracts at other Air Force bases, and input was provided by OCWS, TCG, and other County staff. Volume 3 has since been through the County Contract Review process and has been revised further with input from Purchasing, Risk Management, Legal, and Contracts & Grants. Because the legal documentation was so voluminous, Ms. Heather Encinosa (Nabors, Giblin & Nickerson) assisted Mr. Dowd with the legal review/input. Like HDR, Ms. Encinosa has prior UP experience at other Air Force bases. The County Contract Review coordination sheet is also attached for your review. The OCWS UP Team is now in the process of reviewing and printing the 10 volumes. OCWS is requesting that the BCC authorize the Chairman to sign the pertinent sections of the proposal/contract offer, on behalf of OCWS, at the appropriate time before Feb 19. Currently, there is still a lot of printing, binding, and collating to be done. Should the BCC approve this agenda item and authorize the Chairman to sign, OCWS would get the final documentation to the Chairman for signatures during the week of February 11. After the February 19 submittal, the future timeline is somewhat uncertain. It is possible that the Federal Government will further delay UP or place it on hold. If DLA does intend to move forward awarding a contract to OCWS, there would be negotiations and then OCWS would enter into a contract for a transition period, which is expected to be 6-9 months. During this period, the infrastructure would transition from being operated and