CITY OF LAKE WORTH 7 North Dixie Highway Lake Worth, Florida Phone: Fax:

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1 CITY OF LAKE WORTH 7 North Dixie Highway Lake Worth, Florida Phone: Fax: ROLL CALL: 2. PLEDGE OF ALLEGIANCE: AGENDA-Revised CITY OF LAKE WORTH ELECTRIC UTILITY ADVISORY BOARD MEETING CITY HALL CONFERENCE ROOM WEDNESDAY, OCTOBER 07, :00 PM 3. AGENDA - Additions/Deletions/Reordering: 4. PRESENTATIONS: (there is no public comment on Presentation items) A. MR Valuation - Fair Market Valuation Presentation B. Outage Management System with KBS Technologies 5. BOARD COMMENTS A. Timeline Review Update 6. PUBLIC PARTICIPATION OF NON-AGENDAED ITEMS: 7. APPROVAL OF MINUTES: A. EUAB UNFINISHED BUSINESS: A. Update Long Range Plan Recovery B. Status of the Willdan Financial Services - Economic & Financial Valuation C. Status of RFP Engineering Services for Power Plant Specification 9. NEW BUSINESS: 10. BOARD LIASON REPORTS AND COMMENTS: 11. ADJOURNMENT:

2 Agenda Date: Regular Meeting or Work Session or Special Meeting the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. (F.S ) NOTE: ONE OR MORE MEMBERS OF ANY BOARD, AUTHORITY OR COMMISSION MAY ATTEND AND SPEAK AT ANY MEETING OF ANOTHER CITY BOARD, AUTHORITY OR COMMISSION.

3 Electric Timeline *** Dates are for illustration purposes only *** Rebuild / Upgrade Lake Worth Power Plant Sell Utility Wholesale Purchase Power (Neither Sell or Rebuild) Start Date: February 1, 2015 Start Date: June 1, 2014 Start Date: November 1, 2014 The wholesale power process must commence regardless of any offer decision (Assumes the City has executed the 2yr option) Step 1 RFQ to hire consultant to develop technical specifications 3 months Step 1 Draft RFQ to select evaluation firm 2 months Step 1 Exercise Extension Options with Orlando Utility Commission 2 months A. Value System - RFQ for Market Value B. Value System - RFQ for Economic Value Step 2 Draft RFP to develop technical specifications for generation scope 4 months Step 2 Issue RFQ's 2 months A. Analyze site and auxiliary requirements (utilities, fuel supply, access, neighborhood, environmental conditions) Step 3 Selection Process 3 months B. Identify required permits A. Appoint selection committee (building, emissions,environmental, existing use, transmission interconnection) B. Review Proposals C. Commission Workshop for review of scope and selection process C. Recommendations Step 2 Choose Consultant / Issue the RFQ to develop the scope of RFP 2 months D. Other issues i.e. - bid transperancy D. Contract Approval Step 3 Issue RFP 3 months Step 4 Valuation Process 6 months A. Perform Values B. Review Valuations with the EUAB and staff / Financial & Legal Step 5 City Commission Review and Discussion 3 months Step 3 Develop RFP to purchase power 12 months Step 4 Selection Process 6 months A. Presentation of Valuations to City Commission & EUAB A. Appoint selection committee B. City Commission Discussion B. Evaluate total ownership investment C. City Commission's Direction to Staff C. Financial Advisor review D. Legal Review Step 6 Draft RFP to solicit offers for possible sale 2 months Step 4 Issue the RFP and select the provider 3 months E. Analyze & Perform Rate Impact A. EUAB review RFP Step 7 Issue RFP for possible sale 6 months Critical Decision Period 6/1/16 Critical Decision Period 6/1/16 Critical Decision Period 6/1/16 Step 5 Contract 6 months Step 8 Evaluate offers for sale 9 months Step 5 Selection Process 3 months A. Technical Review A. Appoint selection committee A. Appoint selection committee B. Financial Review B. Financial Advisor Review B. Review Proposals C. Legal Review C. Legal Review C. Recommendations D. Analyze & Perform Rate Impact D. Contract Approval Step 6 Commission Approval of Contract and Financing Methodology 4 months A. Finance Step 9 City Commission Decision and Public Referendum (Assumes the City Commission votes to sell) 6 months B. Review with the City Financial Advisor Step 6 Approvals 6 months Step 7 Plant Construction 3 years Step 10 Legal requirements (Assumes a favorable purchaser) 3 years A. Send letter to exit FMPA - All Requirements Project Step 8 Open Plant 1 month B. Obtain regulatory approvals: FERC FPSC NERC SEC A. Determine best use of existing generators C. Satisfy bond obligations B. Determine associated system requirements D. Bond Council Approvals C. Present milestone reports E. Other possible legal requirements Step 11 Close of sale 12 months Relevant Dates * OUC power supply contract 2017 (January 1st) * OUC power supply contract 2019 (January 1st) 2 year options * Contingent Liability Stanton I Debt 2020/ Stanton II Debt assignment to Kissimmee Utility Authority [KUA] * St. Lucie Debt 2027 Total Estimated Time to Complete 5yrs 3 mons Total Estimated Time to Complete 7yrs 3 mons Total Estimated Time to Complete 2 yrs 4 mons Completion Date May 1, 2020 Completion Date September 1, 2021 Completion Date March 1, 2017 Electric System Timeline: Revised May 29,2014

4 MINUTES CITY OF LAKE WORTH ELECTRIC UTILITY ADVISORY BOARD MEETING September 2, :00 PM The meeting was called to order by Chairperson Lisa Maxwell on the above date at 6:00 PM in the City Hall Conference Room, located at 7 North Dixie Highway, Lake Worth, Florida. 1. ROLL CALL: Present were: Chairperson Lisa Maxwell and members, Sander Schrantz, Caroline Clore, Noah Tennyson and Ibrahim Chalhoub. Peggy Fisher was absent for the roll call but arrived at 6:03 pm. Walt Gill, the Assistant Electric Utility Director was present. Jack Borsch, the new Electric Utility Director for the City of Lake Worth and Board Liaison, was also present. 2. PLEDGE OF ALLEGIANCE: The pledge of allegiance was led by Noah Tennyson. 3. AGENDA Additions/Deletions/Reordering: There were no additions, deletions or reordering on the agenda. 4. PRESENTATIONS: A. Pole Inspection Update Sam Jackson, Line Foreman, presented the pole inspection update. The electric team took the initiative to conduct a pole investigation throughout the City. Sam Jackson explained the pole replacement process. He stated the City owns over 560 poles and 35% required immediate repair or replacement. By conducting this investigation, it allowed staff to become more familiar with the electric system, provide an upgrade to every pole on the circuit and a cost savings of $300,000 for the City. Staff expects the pole investigation to be completed by November 2015.

5 Pg. 2, Regular Meeting, 9/02/15 B. Top 3 bidders for the RFP Engineering Services for the Power Plant Specifications The City of Lake Worth, Florida is planning for the future construction and installation of an electric power plant at a City owned site adjacent to an existing power plant. The City sought proposals from qualified engineering firms to prepare specifications for a new power plant at the City of Lake Worth. The City will consider any type plant with capacities from 65MW to 150MW. It is anticipated that at a minimum, the Engineer will specify a desired heat rate, a required unit startup time, and a desired fuel source. Ten proposers responded to the City s request for proposal. On August 20, 2015, the selection committee reviewed and evaluated each proposer based on the evaluation criteria. David Mulvay, Power Plant Manager, Walt Gill, Assistant Electric Utility Director and Sander Schrantz, EUAB Member were a part of the selection committee. David Mulvay, Power Plant Manager, presented the top 3 out of the 10 proposers for the RFP The top 3 proposers were as follows: 1. Kiewit Engineering & Design Co. 2. Leidos Engineering, LLC 3. Power Burns and Roe Action: Vote: The motion was made by Sander Schrantz to recommend staff to move forward on the RFP process with the selection committee s top three proposers and commence negotiations with Kiewit Engineering. The motion was seconded by Caroline Clore. Unanimous C. Substation and Electric System Upgrade George Guirguis, Engineer, presented the substation and electric system upgrade. He discussed the long range plan recovery. He stated staff is exploring options to upgrade the system in two phases with all necessary safety codes in efforts to reduce budget costs.

6 Pg. 3, Regular Meeting, 9/2/15 D. Outage Management System Walt Gill, Assistant Electric Utility Director, presented the Outage Management System to the EUAB. The second phase to the OMS allows Lake Worth customers to track any City outages online or on a smartphone utilizing map information. An outage link will be on the City s website for the customers use. Walt Gill plans to unveil the upgraded outage management system to the City Commission and City staff over a couple of weeks. The EUAB critiqued the module and recommended staff to use estimated times and the time remaining of outages. 5. BOARD COMMENTS: A. Timeline Review EUAB discussed the timeline options: Rebuilding/ Upgrading the Tom G. Smith Power Plant, Sell the Electric Utility and Extend Contract with OUC. EUAB would like to give management and staff the opportunity to review the timeline before any modifications are made and follow up with the EUAB at the next meeting. B. Clarify purchase power sources: St. Lucie, Stanton and Orlando Utilities Commission The City has 3 purchase power contracts with FMPA for Stanton 1 Coal (11MW), St Lucie nuclear (22MW), and Orlando Utility Commission (33MW) and additional as required. A discussion ensued. C. Letter to extend OUC contracts 1 and 2 year options Staff provided a copy of the executed OUC extension letter for year 1 as per EUAB s request. D. Peggy Fisher provided the update on the September 1 st City Commission Meeting. Siemens Contract was approved which included the street lights, electric and water meters, and solar. E. Sander Schrantz commended Jack Borsch, Electric Utility Director, on taking the initiative to reach out to all of the EUAB members to meet one on one last month.

7 Pg. 4, Regular Meeting, 9/02/15 F. With the board s concurrence, Lisa Maxwell would like for staff to provide the City s kw per hour cost in comparison to FPL breaking out fuel charge, franchise fees and any other charges. It would be beneficial for the EUAB to have this detailed info for future discussions. In the future, Lisa Maxwell would like for the EUAB to attend various HOA meetings throughout the City and communicate the electric utility findings. Jack Borsch has discussed attending HOA meetings with staff and to start compiling a packet to distribute in HOA meetings. 6. PUBLIC PARTICIPATION OF NON-AGENDAED ITEMS: There was no public participation of non-agendaed items. 7. APPROVAL OF MINUTES: A. EUAB Minutes Action: Vote: The motion was made by Sander Schrantz to approve the minutes and seconded by Noah Tennyson. Unanimous 8. UNFINISHED BUSINESS: A. Status of the MRV Valuation- Fair Market Valuation Jack Borsch updated the EUAB with the status of the Fair Market Valuation of the electric utility system. The City has received the work product from MRV Valuation. The EUAB had an opportunity to review the final product. EUAB discussed how the electric fund transfer to the City s general fund impacted the value of the system. The EUAB would prefer for MRV to reconsider how the transfer is identified in the valuation. B. Status of the Willdan Financial Services Economic & Financial Valuation Jack Borsch updated the EUAB with the status of the Economic & Financial valuation of the electric utility system. The City has not received the work product from Willdan Financial Services. Willdan agreed to have a work product in 30 days.

8 Pg. 5, Regular Meeting, 9/2/15 C. Status of the Pole Replacement Contract with Osmose Utilities Services, Inc. to perform utility pole inspections. Staff will not move forward with the contract. Staff has elected to perform the pole inspections in house saving the City $300,000. D. Status of Roadway Illumination on Lake Worth Road Agreement with FDOT. FDOT will be paying the City to install lights along Lake Worth Road and Congress Avenue. Staff is awaiting a notice to proceed for the work from FDOT. The project completion time is estimated to be two months. 9. NEW BUSINESS: There was no new business items on the agenda. 10. BOARD LIAISON REPORTS AND COMMENTS: There were no board liaison reports and comments. 11. ADJOURNMENT: The meeting was adjourned at 8:20 pm. Lisa Maxwell, Chairperson ATTEST: Rossalind Breland, Executive Secretary Minutes Approved: October 7, 2015 A digital audio recording of this meeting will be available in the Office of the City Clerk.