FROM: Donald J. Polmann, Director of Science and Engineering SUBJECT: Emergency Surplus Water Agreement with Hillsborough County - Approve

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1 AGENDA ITEM C1 DATE: August 4, 2008 TO: Gerald J. Seeber, General Manager FROM: Donald J. Polmann, Director of Science and Engineering SUBJECT: Emergency Surplus Water Agreement with Hillsborough County - Approve SUMMARY: The 2025 Capital Improvement Program identified the need for emergency interconnects with Member Governments. The Emergency Surplus Water Agreement will allow Hillsborough County to deliver water on an emergency basis to Tampa Bay Water. RECOMMENDATION: Approve the Emergency Surplus Water Agreement. COST/FUNDING SOURCE: $100 annually, plus $0.65 per 1000 gallons when activated / Uniform Water Rate. DISCUSSION: When necessary, convenient and/or cost-effective, Tampa Bay Water executes surplus water agreements with Member Governments. The Board-approved 2025 Capital Improvements Program identified the opportunity to install emergency connection piping at Member Government facilities rather than building more-costly alternatives that would be limited to emergency use. The maintenance, operation, and use of such connections necessitate the development of surplus agreements that identify responsibilities of the parties. The Emergency Surplus Water Agreement with Hillsborough County is the result of negotiations with the County for delivery of water that would be purchased from the County during emergency conditions. Water would be delivered through new piping that would be installed by Tampa Bay Water at Hillsborough County s Lake Park and Northwest Hillsborough facilities. The piping will connect the County s distribution system to Tampa Bay Water s finished transmission system. Plans at this time are to defer installation of an emergency connection at the County s Lithia facility. With the agreement executed, Tampa Bay Water will have the ability to include the new emergency connection piping in bid documents of projects that are already planned at or near the two Hillsborough County facilities. Including the emergency piping with ongoing work is a cost-effective way to install the piping. Staff recommends the Board approve the Emergency Surplus Water Agreement with Hillsborough County in substantially the same form as attached. The Agreement has been reviewed and approved as to form by the Tampa Bay Water General Counsel s Office. T:\Board Agenda\Approved\C.1. Emergency Surplus Water Agreement Agenda Item.Doc

2 Gerald J. Seeber August 4, 2008 Page 2 BACKGROUND: Surplus agreements are in place with the City of Tampa and New Port Richey for purchasing water on a regular basis. An agreement for emergency surplus water is being developed with the City of St. Petersburg that is planned for consideration by the Board later this year. In February 2006, the Board approved the 10-year, $31 million 2025 Capital Improvements Program. The program was developed through an analysis of the hydraulic capacity of the transmission system to meet average and maximum day demands by the year In addition, reliability during emergency conditions was evaluated. This program included a category of projects called Emergency Operations ; under that category there were two projects that involved Hillsborough County facilities. The two projects are the Lake Park and Northwest Hillsborough Yard Piping projects. The current estimate for the connecting piping is $2,750,000 and is planned to be funded through the Capital Improvement Fund. As negotiations with the County progressed, it was decided to also include the Lithia Water Treatment facility in the agreement. Currently, there is no planned work for Tampa Bay Water at the Lithia facility; should there be a project in the future at that site, the yard piping for emergency surplus water will be included as part of that work. Attachment T:\Board Agenda\Approved\C.1. Emergency Surplus Water Agreement Agenda Item.Doc

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9 To view the Attachment of Agenda Item C.1 Contact Tampa Bay Water Records Department at (727)

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