Contents. Executive Summary...ES-1

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2 Contents Section Page Executive Summary...ES-1 1 Introduction Purpose of a Strategic 20-Year Master Plan Background Service Area and Customer Base Report Organization Population and Water Demand Forecast Summary Introduction Projected Population Permanent Population Seasonal Population Functional Population Historic Water Production Swimming Pool Construction Permits Current Homeowner Versus Former Homeowner Water Use Projected Finished Water Demand Peak Hour Demands Demand by Service Type Demand by Service Type Unmetered Water Conclusions Water Supply System Water Supply Wells Raw Water Quality Biscayne Aquifer Floridan Aquifer Additional Raw Water Facilities Water Supply Permitting Saline Water Intrusion Wastewater Reuse Feasibility of Implementing Wastewater Reuse Water Supply Recommendations Aquifer Storage and Recovery GNV DOC/ WB DFB II

3 CONTENTS, CONTINUED Section Page Low-Pressure Reverse Osmosis Desalination Wastewater Reuse Water Supply Summary Construction Cost Estimates for the Water Supply System Water Treatment System J. Robert Dean Water Treatment Plant General Description Treatment Facilities Summary Kermit H. Lewin Seawater Desalination Facility at Stock Island Marathon RO Emergency Facility, Marathon, Florida Drinking Water Standards and Water Quality General Recent Drinking Water Regulatory Changes Water Quality Data Conclusion Evaluation of Water Treatment Facilities Water Demand and Treatment Capacity J. Robert Dean Water Treatment Plant Kermit H. Lewin RO Seawater Desalination Facility, Stock Island, Florida Marathon Island RO Seawater Desalination Facility, Marathon Island, Florida Water Treatment System Recommendations J. Robert Dean Water Treatment Plant, Florida City, Florida New LPRO Facility at the J. Robert Dean Water Treatment Plant, Florida City, Florida Kermit H. Lewin RO Emergency Facility, Stock Island, Florida Marathon RO Desalination Facility, Marathon, Florida Proposed Ocean Reef RO Facility, Ocean Reef, Florida Construction Cost Estimates for the Water Treatment System New LPRO Facility at the J. Robert Dean Water Treatment Plant, Florida City, Florida Kermit H. Lewin RO Desalination Facility, Stock Island, Florida Marathon RO Desalination Facility, Marathon, Florida Ocean Reef LPRO Treatment Plant, Ocean Reef, Florida Water Transmission System Existing Transmission System Evaluation of Existing Transmission System Transmission System Mains Transmission System Booster Pump Stations and Storage Facilities GNV DOC/ WB DFB III

4 CONTENTS, CONTINUED Section Page 5.3 Transmission System Recommendations Transmission System Mains Transmission System Pump Stations and Storage Facilities Construction Cost Estimates for the Transmission System Water Distribution System Existing Distribution Systems Evaluation of Distribution Systems Distribution Piping Distribution Pump Stations and Storage Facilities Recommended Improvements and Upgrades to Distribution Systems Distribution Piping Existing Distribution Pump Stations and Storage Facilities Proposed Distribution Pump Stations and Storage Facilities Construction Cost Estimates for the Distribution System Capital Improvement Program Year Water System Infrastructure Program Year Water System Capital Improvement Program Mission Year Water System Capital Improvement Program Goals and Objectives Water Infrastructure System Major System Upgrades Basis of Project Cost Estimates Strategic Financial Plan Capital Improvement Funding Strategy Existing Debt and Bond Covenants Five-Year Capital Improvement Funding Twenty-Year Capital Improvement Funding Works Cited Appendix A B C D E F Justification for Projected Per Capita Water Demand in the FKAA Service Area Drinking Water Regulations Update Proposed Water Facilities Improvements Transmission System Capital Cost Estimates Distribution System Capital Cost Estimates Wastewater Reuse Background Information GNV DOC/ WB DFB IV

5 CONTENTS, CONTINUED Exhibit Page 1-1 FKAA Existing Water Facilities Sources of Population Projection Data Monroe County Historic and Projected Population Projections Year Historic and Projected Percent Changes in Functional Population Historic Raw Water Production Historic Finished Water Production Year Historic Percent Changes in Functional Population, Raw Water Demand, and Per Capita Water Demand Annual Swimming Pool Construction Permits Issued by Monroe County FKAA Service Area Projected Population and Finished Water Demands Graphic Representation of FKAA Service Area Projected Population and Finished Water Demands Projected Peak Hour Demands Average Monthly Water Use by Category, million gallons, October 2003 September Graphic Summary of Average Monthly Water Use by Category, million gallons, October 2003 September U.S. Navy Water Usage from 1996 to Raw Water Wells and Pipelines, J. Robert Dean Water Treatment Plant FKAA Water Supply Wells Average Biscayne Aquifer Water Quality, Average Monthly Biscayne Aquifer Raw Water Quality Floridan Aquifer Raw Water Quality and Pumpage Water Use Permitting Water Supply Construction Cost Opinion WTP Flows (Average Monthly) Maximum Daily Month Treated Flows for the Period from January 2000 to June Existing Process Flow Schematic, J. Robert Dean WTP Existing Facilities at J. Robert Dean WTP Lime Dose (Monthly Average) IDSE and Stage 2 Compliance Dates Typical Treatment Facility Water Quality Data and Associated Water FDEP Standards Yearly Average Values: J. Robert Dean Water Treatment Plant Water Treatment Capacities To Meet Maximum Day Demands Preliminary Design Water Quality at J. Robert Dean WTP Process Flow Diagram Preliminary Mass Balance (Phase 1) Preliminary Mass Balance (Phase 2) Preliminary Major Equipment List and Design Criteria Summary J. Robert Dean WTP Phase I and Phase II RO Facility Construction Cost Opinion GNV DOC/ WB DFB V

6 CONTENTS, CONTINUED Exhibit Page 4-16 Kermit H. Lewin RO Desalination WTP Membrane Replacement and Plant Upgrades, Stock Island Construction Cost Opinion Marathon RO Desalination WTP Membrane Replacement and Plant Upgrades, Marathon, Construction Cost Opinion Characteristics of Transmission System Booster Pump Stations and Storage Facilities Construction and Total Project Cost Estimates for Proposed Transmission Main Improvement Projects Approximate Maximum Flow Through Various Size Taps Characteristics of Distribution Pump Stations and Storage Facilities Distribution Pump Station System Sizing Criteria Fire Protection Parameters for Selected Distribution Systems throughout the Keys Distribution System Pumping Capacity and Storage Requirements for Selected Distribution Systems throughout the Keys Approximate Site Size Required for Distribution Pump Stations with Various Size Ground Storage Tanks Construction and Total Project Cost Estimates for Proposed Distribution Pipeline Improvements Construction and Total Project Cost Estimates of Proposed Distribution Pump Station System Improvements and for Proposed New Distribution Pump Station Systems Year Water Infrastructure Capital Improvement - Order of Magnitude Cost Summary Year Water Infrastructure Capital Improvement - Detailed Cost Summary Existing Water Revenue Bonds Five-Year Capital Improvement Funding Plan Five-Year Capital Funding Sources Issuance of Additional Revenue Bonds Estimated Future Aggregate Debt Service Projected Water Rate Adjustments Projected Debt Service Coverage GNV DOC/ WB DFB VI

7 Executive Summary The Florida Keys Aqueduct Authority (FKAA) faces ever-increasing water demands from population growth in the Florida Keys, more stringent environmental protection requirements, and higher customer service expectations. To help address these issues for a 20-year period (from 2006 through 2025), FKAA has prepared this comprehensive strategic Master Plan. The purpose of the Master Plan is to provide FKAA with guidance and recommendations on water system capital improvements and expansion programs through This Master Plan includes recommendations for new facilities or upgrades to existing facilities in water treatment, water supply, transmission, water storage, pumping stations, and distribution. In addition, the Master Plan includes a capital improvement program and a financial analysis to help prioritize and sequence the improvements to have as minimal impact on water rates as possible. The goals and objectives of this strategic plan are focused around the following: Improve water supply and treatment reliability Optimize existing and future treatment to meet current and future regulatory limits Evaluate and implement alternative water supplies: Floridan aquifer, seawater, aquifer storage and recovery (ASR), and reuse Improve transmission and distribution infrastructure Additional storage capacity for distribution systems Replace small-diameter galvanized mains Provide more interconnects between distribution system and transmission main Loop distribution piping where possible Reduce system water losses Provide a long-range financial plan Identify long-term financing options Phase and develop cash flow and investment program Incorporate impact of increased operations and maintenance (O&M) and debt service Quantify impact on rates GNV DOC/ WB DFB ES-1

8 EXECUTIVE SUMMARY Service Area and Customer Base The service area of FKAA includes all of Monroe County plus that area in Miami-Dade County within 1 mile of the transmission pipeline. The service area includes a mix of commercial, industrial, and residential zonings that typify the land uses of a suburban area. Minimal service exists in Miami-Dade County, consisting of service to only a ranger station just outside of the treatment plant. FKAA does not expect that the distribution facilities of the System will be significantly expanded in Miami-Dade County. The Florida Keys are comprised of a chain of more than 800 individual islands located at the southern tip of Florida. FKAA is the only potable water purveyor within the Florida Keys. There are no other competing utilities. However, FKAA is presently precluded by its rules from serving anyone in certain environmentally sensitive areas. Excluded areas are limited to National Wildlife Refuges and certain hardwood hammock lands. Additionally, FKAA is under contract with the U.S. Department of Defense (DoD) to provide up to 2.4 million gallons per day (mgd) of potable water to DoD facilities located at Key West, Boca Chica, and throughout the Keys. Population and Water Demand Forecast FKAA serves three distinct populations: permanent residents, seasonal residents (those residing in the Keys for 6 months or less), and day visitors. The term functional population is a concept that incorporates these three elements of population. Because of the unique nature of the Keys, which has an economy based on seasonal tourism, it is appropriate to use one population number that incorporates these three separate population components. For this Plan, the functional population value is used in all per capita calculations and estimates. There are approximately 3.6 people per customer account within FKAA s service area using functional population as the basis. Population projections developed by the Monroe County Planning Department (MCPD) indicate that the permanent population for the GNV DOC/ WB DFB ES-2

9 EXECUTIVE SUMMARY Florida Keys in 2005 was 81,701, and the seasonal population was 73,737. The term functional population is a concept that incorporates permanent residents, seasonal residents, and day visitors. The functional population for Monroe County in the year 2005 was 155,438. By 2025, Monroe County is expected to have a permanent population of 84,603, a seasonal population of 75,071, and a functional population of 159,674. Projected Water Demand The maximum day projected finished water demands in the FKAA service area are expected to increase from mgd in 2005 to mgd in 2010, mgd in 2015, mgd in 2020, and mgd in Projected maximum-day and peak hour demand were also calculated using peaking factors of 1.25 and 1.35, respectively. Water Supply Recommendations Because of recent regulatory trends, it is unlikely that FKAA will be able to rely on the Biscayne Aquifer, its historical source of potable water, to meet its future needs for additional water. The South Florida Water Management District s (SFWMD s) Lower East Coast (LEC) Regional Water Supply Plan (RWSP) (SFWMD, 2005) advocates the use of the Floridan aquifer as an alternative water supply, either for ASR or for direct withdrawals for blending or reverse osmosis (RO). GNV DOC/ WB DFB ES-3

10 EXECUTIVE SUMMARY Water Supply Summary FKAA s projected 2025 average-day finished water demand is mgd, and the projected 2025 maximum-day finished water demand is mgd. Assuming that Biscayne Aquifer withdrawals are limited to 17.0 mgd during the dry season, 6 mgd can be provided by a new Low Pressure Reverse Osmosis (LPRO) water treatment plant (WTP) at Florida City, and 1 mgd of Floridan aquifer water can be blended at Florida City, which totals approximately 24 mgd. The additional treatment capacity to meet the mgd projected demand would need to come from additional LPRO at Florida City, seawater desalination facilities in the lower Keys and Ocean Reef, or potentially subsidized wastewater reuse. Construction cost estimates for Floridan aquifer supply wells and deep injection well (DIW) for FKAA s cost share of the Ocean Reef 4.5-mgd RO WTP facility are included in the construction cost estimate for water treatment provided in Section 4. FKAA should continue its plans to construct its ASR system as a shortterm solution to comply with a consent order with SFWMD. ASR can provide a short-term bridge to provide FKAA with additional water until an LPRO WTP utilizing the Floridan aquifer as a supply well for the LPRO treatment system is constructed. The ASR well will be constructed with a stainless-steel casing so as to minimize the likelihood of GNV DOC/ WB DFB ES-4

11 EXECUTIVE SUMMARY deterioration should it be used to withdraw brackish water on a longterm basis. The total estimated cost for the water supply improvement is $11,575,000. This includes $10,575,000 to design and construct five Floridan aquifer supply wells for the new 6-mgd LPRO WTP (Phase I and Phase II) at the J. Robert Dean WTP. In addition, $1 million is already allocated to the ongoing ASR well (cost per FKAA for FY 2007 only). The detailed cost breakdown and discussion can be found in Section 3. Water Treatment System Recommendations New Water Treatment Facilities LPRO Facility at the J. Robert Dean Water Treatment Plant, Florida City To meet increased demand, FKAA is proposing to expand capacity by installing new LPRO capacity at the J. Robert Dean WTP site. A Preliminary Design Report for a brackish water RO expansion at the J. Robert Dean Water Treatment Plant has been completed by CH2M HILL on January 19, Revision 1 of the Preliminary Design Report was completed on August 28, The design includes a building to accommodate four RO trains, which when installed would produce a maximum total of mgd finished water. This includes an RO permeate flow of 6 mgd combined with a maximum Floridan bypass blend flow of mgd. Phase I will include three trains totaling 4.5 mgd of capacity of the LPRO WTP, which will meet the projected demands for 2009 through With the installation of the fourth train as Phase II of the project, bringing the new plant to a total of mgd (maximum), projected demands for 2013 through 2018 will be met. Meeting the projected maximum day water demand of 2018 and beyond will require either utilizing finished water storage or an expansion of the facilities at Florida City or elsewhere. One DIW for the proposed RO desalting plant s concentrate disposal will be required. The DIW is currently under design with a disposal capacity adequate for 6 mgd of RO capacity. The estimated cost for Phase I (4.5 mgd) is $25,223,399, with Phase II adding another 1.5 mgd of capacity at a cost of $1,836,400. The total project cost (both phases) for a new 6 mgd capacity WTP is $27,059,799. Detailed costs and discussions can be found in Section 4. Proposed Ocean Reef RO Facility, Ocean Reef, Florida FKAA is also considering construction of an LPRO brackish water plant at Ocean Reef to offset the costs to replace or expand the 65,000 feet of GNV DOC/ WB DFB ES-5

12 EXECUTIVE SUMMARY transmission main from Key Largo to Ocean Reef. The capacity of the facility is expected to be approximately 4.5 mgd, which will provide irrigation and potable water supply to the Ocean Reef community. Approximately 1.5 mgd of the capacity will be utilized to offset current FKAA demands and will reduce the capacity needs at the Florida City Dean WTP by 1.5 mgd. The benefits of a facility would be the elimination of the high capital costs to replace the 65,000-foot transmission pipeline, elimination of booster pumping costs at the new Key Largo Pump Station, high quality water for one of FKAA s better customers, and a joint public/private project that benefits both Ocean Reef and FKAA. The cost share for FKAA is estimated to be $8,350,000 (per FKAA). Existing Water Treatment Facilities Upgrades J. Robert Dean Water Treatment Plant, Florida City, Florida Overall, the lime-softening WTP is in good condition, and no major repairs are anticipated in the future. Minor improvement items include: Add extra filter anthracite media to compensate for media loss and maintain filter performance. Investigate visible surface cracks on the recently installed 5 million gallon (MG) storage tank onsite. The cracks are probably superficial in nature. An investigation is pending by Crom, the tank manufacturer. Evaluate seepage problems and discoloration on the outside of the sludge thickener tank. Repairs may be needed. Add two new chlorinators to the existing chlorinator facility for use under the following circumstances: One chlorinator will be dedicated to feed chlorine to the new clearwell and paced to maintain a desirable chlorine concentration based on total RO permeate flow. The second chlorinator will be dedicated to feed chlorine to the scrubber system recirculation line to maintain the desired ORP set point. The second chlorinator will be dedicated to feed chlorine to the scrubber system recirculation line to maintain the desired ORP set point. Kermit H. Lewin RO Emergency Facility, Stock Island, Florida The following improvement items are proposed at the Kermit H. Lewin RO facility to increase production capacity to 2.5 mgd: Retrofit two trains with existing DuPont permeators with Toyobo modules GNV DOC/ WB DFB ES-6

13 EXECUTIVE SUMMARY Install new carbon dioxide storage and feed system for raw water Replace existing feed piping (downstream of the feed throttling valve), the concentrate piping, and permeate piping Install a limited-size bypass line around the energy recovery units to lessen the concentrate backpressure Refurbish and seal the clearwell under the degasifiers Install an elevated walkway and platform on the north side of the building connecting the second story stairway platform to the diesel fuel storage tank system The estimated cost for these improvements is $3,817,566. A detailed cost breakdown and discussion can be found in Section 4. Marathon RO Desalination Facility, Marathon, Florida The following improvement items are proposed at the Marathon RO emergency facility to provide 1.25 mgd of production capacity: Retrofit two trains with existing DuPont permeators with Toyobo modules Install new carbon dioxide storage and feed system for raw water Replace existing feed piping (downstream of the feed throttling valve), the concentrate piping, and permeate piping Refurbish and seal the clearwell under the degasifiers Upgrade components that are affected by corrosion The estimated cost for these improvements is $2,659,003. A detailed cost breakdown and discussion can be found in Section 4. The locations of all water treatment improvements including new facilities are shown in Appendix C. Transmission System Recommendations FKAA has a unique water system that extends some 130 miles from Florida City to Key West and is only approximately 3 miles wide at its widest point. The water transmission system begins at the high-service pumps at the J. Robert Dean WTP in Florida City. This plant pumps water into the transmission main at an operating pressure of 250 pounds per square inch (psi) to transmit water through the entire Keys service area. The proposed improvements for the different components of the transmission system are briefly described below. GNV DOC/ WB DFB ES-7

14 EXECUTIVE SUMMARY Transmission System Mains Improvements Jewfish Creek Bridge 36-Inch Transmission Main Relocation C-111 Canal Bridge 36-Inch Transmission Main Relocation Other U.S. 1 8-Mile Stretch Highway Improvements that may Impact 36-Inch Transmission Main 12-Inch Ocean Reef Transmission Main (22,000 feet of the main to be replaced) 36-Inch Transmission Main, Key Largo, MM 93 to MM Inch Transmission, MM Phase II Cathodic Protection System Improvements Transmission Main Improvements, North Roosevelt Boulevard Highway Improvements Transmission System Pump Stations and Storage Facilities High-Service Pumping and Storage Facilities at the J. Robert Dean WTP Key Largo Booster Pump Station Plantation Key Booster Pump Station Marathon Booster Pump Station and Storage Facilities The locations of these improvements including new facilities are shown in Appendix C. The total estimated cost for all transmission system mains, booster pump stations, and storage facilities is $58,899,034. Detailed cost estimates and project descriptions can be found in Section 5. Distribution Systems Recommendations The proposed improvements for the distribution system includes distribution main, pumping stations, and storage facilities. When these improvements are initiated, this will be the first time since the early 1980s that any new distribution system tankage has been built. The proposed distribution pump station pump sizes and storage volumes and all distribution system piping sizes were determined without verification through hydraulic modeling. Before final design of any system begins, the system component sizes should be verified through hydraulic modeling. The recommended improvements to both existing and new facilities are briefly described below. GNV DOC/ WB DFB ES-8

15 EXECUTIVE SUMMARY Distribution Piping Replace Old Galvanized Mains Upsize Small-Diameter Mains to 4-Inch Minimum Install Additional Tap on Little Torch Key Cudjoe Key-Additional Distribution Main Header to Interconnect System Taps Improvements to Existing Distribution Pump Stations and Storage Facilities Ocean Reef 1 MG of storage, plus standby power Rock Harbor Replace and upsize pump and increase storage by 1 MG Tavernier Upsize pump station and increase storage by 1 MG Islamorada Install a distribution main header Crawl Key, Marathon 1 MG of additional storage and two new pumps. Vaca Cut, Marathon Install new 0.5 MG storage tank 33rd Street, Marathon Replace existing pump station and 0.5 MG storage Summerland Key Replace pump station and 0.5 MG storage tank Stock Island Distribution Pump Station - Replace Pump station Proposed New Distribution Pump Stations and Storage Facilities Lake Surprise, between Adams Cut and Lake Surprise New pump station and 0.75 MG storage tank Plantation Key New pump station and 1.0 MG storage tank Lower Matecumbe Key New pump station and 0.5 MG storage tank Duck Key/Grassy Key - New pump station and 0.75 MG storage tank Ramrod Key - New pump station and 0.5 MG storage tank Cudjoe Key (under design; two feet and one 1.0 MG storage tank) Lower Sugarloaf Key - New pump station and 0.5 MG storage tank The locations of these improvements including new facilities are shown in Appendix C. The total estimated cost for all distribution main upgrades is $47,500,000. For the pump station and storage facilities upgrades, the GNV DOC/ WB DFB ES-9

16 EXECUTIVE SUMMARY estimated cost is $33,546,000. Detailed cost estimates and project descriptions can be found in Section Year Water Infrastructure Order-of-Magnitude Cost Summary Capital Improvement Program FKAA s Water Infrastructure Capital Improvement Program (CIP) involves upgrades to existing facilities as well as proposed new infrastructure for FKAA s Water System through the investment of approximately $208.6 million (in 2006 dollars) in capital improvements. This cost estimate includes project construction costs for improvements over a 20-year period and also includes additional cost for contingency and consulting/administrative/legal costs. The CIP identifies many short-term and long-term improvements to the water transmission system, raw water supply system, the water storage and distribution system, and the WTPs. Upgrades to the Water System will increase capacity, and improve flows and pressures to meet anticipated water demands. Significant upgrades to the WTPs are planned to improve the reliability and quality of FKAA s drinking water. A specific goal is to provide high quality water that continues to meets regulatory standards to the entire service area. Major improvements to the water system include a new Floridan aquifer wellfield that will serve a new LPRO treatment facility at the J Robert Dean WTP in Florida City, multiple rehabilitation or upgrade projects at both the Kermit H. Lewin Desalination WTP and the Marathon Desalination WTP facility to increase reliability and capacity to meet emergency and peak day flows, and various transmission/ distribution line replacements, distribution pump station upgrades, and additional water storage tank capacity to improve storage and delivery GNV DOC/ WB DFB ES-10

17 EXECUTIVE SUMMARY capacity of the system. Detailed cost estimates and listing of the entire CIP can be found in Section 7. Financial Strategy Funding for the Capital Improvement Program outlined in Section 7 will be accommodated by various sources of revenue available from the Water System together with potential grants from either the SFWMD, the State of Florida, and/or federal grant programs. It is expected that the majority of the funding will arise from leveraging the water revenues from the rate payers as a source of repayment on long term bond issues utilizing sound financial practices and financing tools to protect the financial integrity of the system as well as reduce interest costs thereby having the least impact upon ratepayers. The projects outlined in Section 7 will be detailed in a rolling 5-year capital funding program, which will be presented to the FKAA Governing Board annually as part of the budget process. FKAA will maintain the integrity of the existing System s credit ratings in the bond market by maintaining or improving the ratings that currently exist on the outstanding bonds. Implicit in maintaining the System s bond ratings is strict adherence to the bond covenants under FKAA s Master Bond Resolution. The overall capital improvement funding strategy will strive to minimize and spread out on an intergenerational basis the impact of rate adjustments required to amortize the proposed bond issues with a fair allocation of costs to current and future beneficiaries or users. More than 40 percent of the 20-year capital improvements are scheduled within the next 5 years (that is, by Fiscal Year 2011). Because financial forecasting is less reliable beyond a 5-year period, a detailed funding analysis has not been completed past Fiscal Year As future projects GNV DOC/ WB DFB ES-11

18 EXECUTIVE SUMMARY move within the 5-year planning horizon, specific capital strategies will be developed. Such capital funding will likely include additional borrowing as well as cash funding from rates. The underlying objective will be to continue to fund necessary capital improvements, minimize future water rate adjustments, and maintain the creditworthiness of the FKAA Water System. Five-Year Capital Funding Sources Funding Source Five-Year Amount % of Total Operating Reserves $8,774, % System Development Charges $5,062, % Series 2006 Bonds Remaining Funds $23,162, % Series 2007 Bonds $53,368, % Series 2009 Bonds $25,539, % Grants $500, % Total 1 $116,405, % Note: 1 Project amounts obtained from the Water Master Plan as of September 2006, with adjustments obtained from FKAA staff regarding FY2006 project carryovers as of October A detailed discussion and financing plan can be found in Section 8. GNV DOC/ WB DFB ES-12

19 SECTION 1 Introduction 1.1 Purpose of a Strategic 20-Year Master Plan The Florida Keys Aqueduct Authority (FKAA) faces ever-increasing water demands from population growth in the Florida Keys, more stringent environmental protection requirements, and higher customer service expectations. To help address these issues for a 20-year period (from 2006 through 2025), FKAA has prepared this comprehensive strategic Master Plan that includes a list of Capital Improvement Projects (CIP) during this 20-year planning period. Specific strategic goals and objectives for this plan were defined early on in the Master Plan process and included: Developing a long-range strategic facilities plan Improving system reliability Providing financial forecasting tool Developing cash flow and investment program in conjunction with phasing all CIP plans Developing long-term financing plan to match CIP Determining rate impact of increased operations and maintenance (O&M) and debt service Optimizing water treatment (reverse osmosis [RO], lime softening, raw) to meet future compliance issues and water quality goals Meeting future water supply needs by using alternative water supplies: Biscayne, seawater, Floridan aquifer, aquifer storage and recovery (ASR) Improving production reliability of J. Robert Dean WTP Improving reliability of all desalination facilities Improving storage capabilities throughout the Keys Eliminating all galvanized water mains Connecting Distribution Systems along U.S. 1 to interconnect with more taps where possible Reducing as much as possible the dependency of taps as the primary means of maintaining distribution system pressures, particularly for the larger, more concentrated distribution systems WPB DOC/ WD DFB

20 SECTION 1 - INTRODUCTION Looping all distribution where possible Increasing storage to reduce difficulty in maintaining needed water levels Address Regulatory Requirements: Water treatment Disinfectant/Disinfection By-product (D/ DBP) Rule Permitting - Future Biscayne water use allocation from the South Florida Water Management District (SFWMD) Reduce system water losses (as much as 12 percent at present) Clearly develop strategy on transmission vs. distribution operation From these strategic goals and objectives, the Master Plan was created to provide FKAA with guidance and recommendations on strategic water system capital improvements and expansion programs through This Master Plan includes recommendations for new facilities or upgrades to existing facilities in water treatment, water supply, transmission, water storage, pumping stations, and distribution. In addition, the Master Plan includes a capital improvement program and a financial analysis to help prioritize and sequence the improvements to have as minimal impact on water rates as possible. 1.2 Background FKAA was created in 1937 by the State of Florida to be the sole provider of potable water for all of the residents of the Florida Keys. FKAA presently serves more than 44,000 customers within Monroe County. Potable water is transported to the Keys through a 130-mile-long transmission pipeline, with an additional 649 miles of distribution pipelines that deliver water to the customer s property. In 1998 and 2002, FKAA s Enabling Legislation was amended to redefine the primary purpose of FKAA to include collecting, treating, and disposing of wastewater in certain areas of the Florida Keys. FKAA s activities relating to provision of wastewater services are accounted for separately from the water service and are not included in this document. However, this Master Plan document does take into consideration the impact of wastewater reuse and the need to consider reuse to offset increased water demand and its impact on per capita cost. 1.3 Service Area and Customer Base The service area of FKAA includes all of Monroe County plus that area in Miami-Dade County within 1 mile of the transmission pipeline. The FKAA existing Water System overview is presented in Exhibit 1-1, which shows transmission mains, pumping facilities, ground storage tanks, and water treatment facilities. The service area includes a mix of commercial, industrial, and residential zonings that typify the land uses of a suburban area. Minimal service exists in Miami-Dade County, consisting of service to only a ranger station just outside of the treatment plant. FKAA does not expect that the distribution facilities of the System will be significantly expanded in Miami-Dade County per FKAA Statute Provision of Water Service Within Miami-Dade County. WPB DOC/ WD DFB

21 N SYSTEM MAP "= 8 MILES FLORIDA CITY SYSTEM MAP 8 OCEAN REEF SYSTEM MAP 7 KEY LARGO SYSTEM MAP 6 TAVERNIER SYSTEM MAP 5 UPPER MATECUMBE KEY SYSTEM MAP 2 SYSTEM MAP 3 SYSTEM MAP 4 SYSTEM MAP 1 MARATHON BIG PINE KEY RAMROD KEY KEY WEST ROCKLAND KEY EXHIBIT 1-1 SYSTEM MAP KEY PLAN (EXISTING WATER FACILITIES) FLORIDA KEYS AQUEDUCT AUTHORITY WATER SYSTEM CAPITAL IMPROVEMENT MASTER PLAN 00nc101f_ dgn 22-FEB-2006

22 2.0 MGD R.O. PLANT

23 N "= 1 MILE EXISTING 18" WATER TRANSMISSION MAIN OVERSEAS HWY / U.S. 1 EXISTING 18" WATER TRANSMISSION MAIN MATCHLINE - SEE SYSTEM MAP 1 SUMMERLAND KEY MATCHLINE - SEE SYSTEM MAP 3 DISTRIBUTION PUMP STATION DIST.2 MG RAMROD KEY EXISTING 24" WATER TRANSMISSION MAIN BOOSTER PUMP STATION EXISTING 24" WATER TRANSMISSION MAIN EXHIBIT 1-1 SYSTEM MAP 2 (EXISTING WATER FACILITIES) FLORIDA KEYS AQUEDUCT AUTHORITY WATER SYSTEM CAPITAL IMPROVEMENT MASTER PLAN 00nc102f_ dgn 14-MAR-2006

24 NO NAME KEY 1.0 MGD R.O. PLANT VACA KEY GRASSY KEY

25 N EXISTING 30" WATER TRANSMISSION MAIN EXISTING 30" WATER TRANSMISSION MAIN "= 1 MILE MATCHLINE - SEE SYSTEM MAP 5 MATCHLINE - SEE SYSTEM MAP 4 EXISTING 18" WATER TRANSMISSION MAIN EXISTING 18" WATER TRANSMISSION MAIN EXISTING 30" WATER TRANSMISSION MAIN BOOSTER PUMP STATION LONG KEY EXHIBIT 1-1 SYSTEM MAP 5 EXISTING 18" WATER TRANSMISSION MAIN (EXISTING WATER FACILITIES) FLORIDA KEYS AQUEDUCT AUTHORITY WATER SYSTEM CAPITAL IMPROVEMENT MASTER PLAN N 1"= 1 MILE TAVERNIER MATCHLINE - SEE SYSTEM MAP 7 MATCHLINE - SEE SYSTEM MAP 6 ISLAMORADA DISTRIBUTION PUMP STATION DIST.5 MG DISTRIBUTION DIST DIST EXISTING 18" WATER TRANSMISSION MAIN PUMP STATION 1 MG EXISTING 30" WATER TRANSMISSION MAIN.5 MG EXHIBIT 1-1 SYSTEM MAP 6 FLORIDA KEYS AQUEDUCT AUTHORITY EXISTING 18" WATER TRANSMISSION MAIN (EXISTING WATER FACILITIES) WATER SYSTEM CAPITAL IMPROVEMENT MASTER PLAN 00nc101f_ dgn 14-MAR-2006

26 KEY LARGO BOOSTER PUMP STATION 12 TRANSMISSION MAIN 12 TRANSMISSION MAIN

27

28 SECTION 1 - INTRODUCTION FKAA is the only potable water purveyor within the Florida Keys. There are no other competing utilities. However, FKAA is presently precluded by its rules from serving anyone in certain environmentally sensitive areas. Excluded areas are limited to National Wildlife Refuges and certain hardwood hammock lands. Additionally, FKAA is under contract with the U.S. Department of Defense (DoD) to provide up to 2.4 million gallons per day (mgd) of potable water to DoD facilities located at Key West, Boca Chica, and throughout the Keys. 1.4 Report Organization The Master Plan includes nine sections, which are organized as follows: Executive Summary, presents key issues and final capital improvement recommendations including a 20-year financial strategy (2006 through 2025). Section 1, Introduction, presents a brief purpose of the Master Plan and a summary of existing water infrastructure. Section 2, Population and Water Demand Forecast Summary, presents population and water demand forecasts for the planning period ( ). Section 3, Water Supply System, describes FKAA s water supply system, and presents recommendations for water supply options to meet projected demands. Section 4, Water Treatment System, discusses the current facilities for water treatment and the impact of current or anticipated drinking water standards. This section also presents recommendations for water treatment options to meet projected demands. Section 5, Water Transmission System, describes FKAA s current transmission main and booster pump station system and recommended improvements. Section 6, Water Distribution System, presents a discussion of the FKAA distribution mains, ground storage, and pumping system network and proposed improvements. Section 7, Capital Improvement Program, presents a detailed layout of proposed improvements and new projects. Section 8, Strategic Financial Plan, presents a 20-year financial strategic model. Section 9, Works Cited, provides complete references for documents cited in this Master Plan. Appendix A, Justification for Projected Per Capita Water Demand in the FKAA Service Area Appendix B, Drinking Water Regulations Update Appendix C, Proposed Water Facilities Improvements Appendix D, Transmission System Capital Cost Estimates Appendix E, Distribution System Capital Cost Estimates Appendix F, Wastewater Reuse Background Information WPB DOC/ WD DFB

29 SECTION 2 Population and Water Demand Forecast Summary 2.1 Introduction The development of accurate population projections and water use demands for the Florida Keys is challenging because of the high number of seasonal residents (those residing in the Keys for 6 months or less), and day visitors (from cruise ships docking in Key West or visitors from the mainland). The population projections developed by the Monroe County Planning Department (MCPD) and used in the U.S. Army Corps of Engineers (USACE) Florida Keys Carrying Capacity Study (USACE, 2003) are used as the basis for the majority of population projections developed by other agencies, and were also used for this analysis. The MCPD permanent and seasonal population projections were used to develop a functional population (permanent plus seasonal) for FKAA s service area through The projected population was then multiplied by FKAA s projected per capita demand to project customer demand in the service area. The per capita demand is projected to increase as the changing demographics of the Keys result in higher individual water use (for example, redevelopment of existing property usually involves some level of irrigation or other water-consuming amenities where none previously existed). 2.2 Projected Population Permanent Population The MCPD permanent population projections include the most appropriate and applicable information and are viewed as the basis of future projections in this Plan. From 1990 through 1995, the permanent population of Monroe County increased from 78,856 to 79,200 (0.4 percent); from 1995 through 2000, it increased from 79,200 to 79,589 (0.5 percent); and from 2000 through 2005, it increased from 79,589 to 81,701 (2.7 percent). GNV DOC/ WB DFB

30 SECTION 2 - POPULATION AND WATER DEMAND FORECAST SUMMARY The MCPD data in the USACE Carrying Capacity Study (USACE, 2003) project a permanent population of 79,589 for 2000; 81,701 in 2005; 83,400 in 2010; 83,799 in 2015; 84,200 in 2020; and 84,603 in Exhibit 2-1 summarizes the MCPD permanent population projections. The permanent population is projected to grow at an overall average rate of 1.2 percent for each 5-year period from 2005 through 2025, with a higher rate (2.1 percent from 2005 to 2010) and a lower rate (0.5 percent) thereafter as Monroe County nears build-out Seasonal Population The MCPD seasonal population projections in the USACE Carrying Capacity Study (USACE, 2003) also were used to project the seasonal population for Monroe County. Although there are no exact counts of the seasonal population, the MCPD developed historical seasonal population projections for 1990, 1995, and The MCPD projected that the 1990 seasonal population of 70,493 increased by 1.1 percent to a 1995 population of 71,266, and further increased by 3.1 percent to a 2000 seasonal population of 73,491.The MCPD continues these seasonal population projections in 5-year increments starting with a seasonal population of 73,737 in 2005; 74,533 in 2010; 74,712 in 2015; 74,891 in 2020; and 75,071 in The seasonal population is projected to increase at an overall average rate of 0.4 percent for each 5-year period from 2005 through 2025, with a 1.1 percent increase between 2005 and 2010 and a 0.24 percent increase from 2010 through Functional Population The term functional population is a concept that incorporates three elements of population: permanent residents, seasonal visitors, and day visitors. Because of the unique nature of the Keys, which has an economy based on seasonal tourism, it is appropriate to use one population number that incorporates these three separate population components. In 2004 and 2005, CH2M HILL developed population projections for the FKAA service area. The population projections were based on those developed by the Monroe County Planning Department, and combined the permanent population with the seasonal population to form a functional population that was used to estimate water demand. As part of this effort, CH2M HILL contacted the agencies or municipalities listed in Exhibit 2-1 to determine if they could provide data that could be used to develop population projections for the FKAA service area. Ultimately, it was decided to use the functional population projections developed by Monroe County. Exhibit 2-2 presents the MCPD permanent, seasonal, and functional populations between 1990 and For this Plan, the functional population value is used in all per capita calculations and estimates. There are approximately 3.6 people per customer account within FKAA s service area using functional population as the basis. Exhibit 2-3 summarizes the percent change in the functional population in 5-year intervals, starting in GNV DOC/ WB DFB

31 SECTION 2 - POPULATION AND WATER DEMAND FORECAST SUMMARY EXHIBIT 2-1 Sources of Population Projection Data Agency or Municipality Type of Data Contact Person Data Source Comments University of Florida Bureau of Economic and Business Research (BEBR) Permanent Population Projections N/A 2003 Annual Report Projections for the entire state of Florida by county from 2000 through Monroe County Planning Department Permanent and Seasonal Population Projections N/A 2004 Comprehensive Plan and Facilities Capacity Assessment Seasonal and permanent population projections were based off 1990 US Census and updated with the 2000 US Census numbers for the entire county. Monroe County Tourist Development Council (TDC) Hotel, Cruise Ship, and Airline Data Jessica Mazzola, Director of Market Research Three Penny Revenue Report, Call Counts, Trend Report and Airline Passenger Data Report FY 2004 The most detailed seasonal data, but did not account for the day trip visitor. Islamorada Permanent Population Projections Patrick Small, Principal Planner 2003 Comprehensive Plan Developed based on the US Census. Key Colony Beach Permanent and Seasonal Population Projections Clyde Burnett, Mayor 1992 Comprehensive Plan Developed based on the US Census. Key West Permanent and Seasonal Population Projections Ty Symrowski, City Planner 1994 Comprehensive Plan Developed based on the US Census. Layton Permanent and Seasonal Population Projections Norm Anderson, City Council N/A Developed based on the US Census. Marathon Permanent and Seasonal Population Projections Katie Parker, Planner 2003 Comprehensive Plan Developed based on the US Census. U.S. Census Permanent Population Estimates N/A 2000 Census Estimates Permanent population estimates for 2000 by county. South Florida Water Management District (SFWMD) Population and Water Demand Projections N/A Lower East Coast Regional Water Supply Plan (LEC RWSP) (2003) Draft data from November U.S. Army Corps of Engineers (USACE) Permanent and Seasonal Population Projections N/A Carrying Capacity Study (2003) Included constraints on growth and environmental factors. Note: N/A = not applicable GNV DOC/ WB DFB

32 SECTION 2 - POPULATION AND WATER DEMAND FORECAST SUMMARY EXHIBIT 2-2 Monroe County Historic and Projected Population Projections Year Permanent Population Seasonal Population Functional Population (Permanent + Seasonal + Day Visitors) ,856 70, , ,925 70, , ,994 70, , ,062 70, , ,131 71, , ,200 71, , ,278 71, , ,356 71, , ,433 71, , ,511 71, , ,589 73, , ,011 73, , ,434 73, , ,856 73, , ,279 73, , ,701 73, , ,041 73, , ,381 74, , ,720 74, , ,060 74, , ,400 74, , ,480 74, , ,560 74, , ,639 74, , ,719 74, , ,799 74, , ,879 74, , ,959 74, , ,040 74, , ,120 74, , ,200 74, , ,281 74, , ,361 74, , ,442 74, , ,522 75, , ,603 75, ,674 GNV DOC/ WB DFB

33 SECTION 2 - POPULATION AND WATER DEMAND FORECAST SUMMARY EXHIBIT Year Historic and Projected Percent Changes in Functional Population Percent Change in 5-Year Period Functional Population % % 2.3 Historic Water Production CH2M HILL reviewed the raw water pumpage records from the FKAA s Florida City wellfield from 1990 through These data, obtained from the FKAA s previous water use permit (WUP) applications, Monthly Operating Reports (MORs), and Monthly Production Reports (MPRs), are summarized in Exhibit 2-4. Exhibit 2-5 summarizes the same data for finished water; however, because of limited continuous annual historic data, a summary from 2000 to 2005 is presented. Unlike population growth, which increased less than 2 percent for each 5-year period from 1990 through 2005 (Exhibit 2-3), the average-day raw water demand for the FKAA service area increased much more rapidly. From 1990 to 1995, the average-day raw water demand for the service area increased from mgd to mgd, an increase of 16.7 percent. From 1995 to 2000, the average-day demand increased by 21.2 percent, from mgd to mgd. From 2000 to 2005, average-day demand increased by only 4.0 percent, from mgd to mgd. As seen in Exhibits 2-4 and 2-5, the 2000 drought with water restrictions resulted in significantly lower demands in 2001 (the year in which water restrictions were fully implemented). It is also possible that reduction in travel following the September 11, 2001, terrorist attacks resulted in less tourism. GNV DOC/ WB DFB

34 SECTION 2 - POPULATION AND WATER DEMAND FORECAST SUMMARY EXHIBIT 2-4 Historic Raw Water Production Year Annual Demand (MG) Average Daily Demand (mgd) Max Day Demand (mgd) Average Monthly Demand (MG) Per Capita Demand (gpcd) , , , , , , , , , , , , , , , , Notes: MG=million gallons mgd=million gallons per day gpcd=gallons per capita per day per capita=functional population EXHIBIT 2-5 Historic Finished Water Production Year Annual Demand (MG) Average Daily Demand (mgd) Max Day Demand (mgd) Average Monthly Demand (MG) Per Capita Demand (gpcd) , a 5, , , , , Notes: a 2001 maximum day for historic finished water was higher than maximum day for raw water (Exhibit 2-3) because of higher pumpage from storage tanks at Florida City during peak hours. MG=million gallons mgd=million gallons per day gpcd=gallons per capita per day per capita=functional population GNV DOC/ WB DFB