Bruce C. Gilbert, Chairman

Mike Smith, Vice Chairman

Bruce C. Berry

S. Richard Brand

Ronald G. Harrington

Emery Olcott

John S. Sutfin

Steven Techet

Tom Martell

David C. Ritz, President

2010-2011 NKLUC

BOARD OF DIRECTORS

NOMINATIONS

The nominees for the

NKLUC

Board of Directors are:

Rick Brand - 3 year term

Martha Kavanaugh - 3 year term

Al Mast - 3 year term

Tom Martell – 1  year term

The election will be held on April 1, 2010 just prior to the Annual Meeting.

NKLUC Sewer Usage Charge to be Billed by FKAA

The North Key Largo Utility Corp (NKLUC), announced a billing procedure change for the yearly sanitary sewer usage charge.

In the past, NKLUC has billed residential, multi-family and marinas a flat, one-time yearly fee at the beginning of the year, due 20-30 days later. Commercial accounts were billed monthly based on water usage.

NKLUC recently reached an agreement to have the Florida Keys Aqueduct Authority (FKAA) perform its sewer billing. Therefore, before the end of December, single family homes, multi-family homes and marinas will get an FKAA water bill that will include payment due to FKAA. Commercial customers will get their first FKAA bill at the end of January. FKAA will then reimburse NKLUC. Nothing else has been changed. This billing change was made in order to streamline our billing process and cut costs. 

The NKLUC Board is pleased to report that the yearly sewer usage charge has not increased over last year’s charge.

                           Minutes of a Regular Meeting of the

Board of Directors of the

North Key Largo Utility Corp.

Pursuant to due notice, a regular meeting of the Board of Directors of the North Key Largo Utility Corp. was called to order on Friday, November 20, 2009 in the ORC Conference Room, Ocean Reef.

Those present and constituting a quorum were:

Bruce Gilbert, Chairman

Bruce Berry

Rick Brand

Emery Olcott

Ron Harrington

Steve Techet

Mike Smith

Leonard Wood, via phone

John Sutfin was absent.  Also in attendance were David C. Ritz, President; Paul Astbury, ORC President; Jeff Oeltjen, Vice President; Ford Franklin, Treasurer, and Susie Ptomey, Recording Secretary.  Guests were Peter Lorenz and Randy Holbrook.

A.       Call to Order

Mr. Gilbert called the meeting to order at 8:00 a.m.  These minutes are provided as a general account of the meeting and are not intended as a verbatim record; only motions and pertinent discussions are recorded herein.  Due notice of the time, date, and location of this meeting has been provided at the ORCA Office, the Ocean Reef Pak Mail, the ORCA Website and the Ocean Reef Tidings. 

B.       Approval of October 13, 2009 Regular Meeting Minutes

Upon motion duly made and seconded, the Minutes of the October 13, 2009 Minutes were unanimously approved. 

C.       October 2009 Financials

Ford Franklin gave a brief update of the financials.  After discussion, motion as made, seconded and passed unanimously to accept the financials as presented. 

D.         Annual Sewer Usage Charge Report

Jeff gave this update.  There are still 15 unpaid sewer bills.  Finance is continuing collections by phoning and sending late notices.

E.         Proposed 2010 budget

After discussion, motion was made, seconded and passed unanimously to approve the budget as presented with the stated sewer rates.

F.         Angler’s Club Agreement

After discussion, motion was made, seconded and passed unanimously to adopt the Angler’s Club Agreement as presented.

G.        FKAA Billing Agreement

After lengthy discussion, motion was made, seconded and passed unanimously to adopt the Agreement between the Florida Keys Aqueduct Authority (FKAA) and North Key Largo Utility Corporation (NKLUC) authorizing FKAA to invoice and collect NKLUC statements.

H.       WWTP Assessment Update

NKLUC has received 12% of the commercial assessments and 24% of the residential assessments.  This allows NKLUC to postpone tapping into the loan.

I.       WWTP Construction Update

Jeff Oeltjen reported on the WWTP construction.  The construction meetings are continuing every other Tuesday.

The project is 2 to 3 weeks behind schedule and on budget. 

The R/O building is 95% complete and should be complete mid December.

J.       New Business

K.         Next Board Meeting, December 16, 2009; 9:00 a.m.

L.      Adjournment - There being no further business, the meeting was adjourned at 8:30 a.m.

North Key Largo Utility

Advanced Treatment and Wastewater

Reuse Project

The Florida Department of Environmental Protection (FDEP) is requiring all wastewater treatment plants in Monroe County to be upgraded to meet advanced wastewater treatment (AWT) standards.  This requirement is aimed at protecting the marine ecosystem of the Florida Keys.

Sewer Plant Construction Begins

The North Key Largo Utility Corporation (NKLUC) Advanced Treatment and Wastewater Reuse Project has commenced.  The Demolition Permit has been obtained and the Notice to Proceed has been sent to the contractor.  Demolition will start at the beginning of August with construction taking place immediately thereafter. The project is projected to take one and 1/2 years to complete.

As previously reported, the Florida Department of Environmental Protection (FDEP) is requiring all wastewater treatment plants in Monroe County to be upgraded to meet advanced wastewater (AWT) standards.  This requirement is aimed at protecting the marine ecosystem of the Florida Keys. 

 Sewer Assessments Were Mailed in Early August

The North Key Largo Utility (NKLUC) Board of Directors have reviewed and approved the $14.5 million dollar project, financing and assessment methodology.

There are two options for paying the assessment:

 OPTION 1:  

A discounted (no interest included) lump sum one-time payment due September 30, 2009.

OPTION 2:

An annual payment (interest included) for ten years with the first payment due January 1, 2012.

If full payment is not received by September 30, 2009 your property will be included in the ten-year annual assessment payment option. 

NLKUC is committed to completing the project on time and on budget and continues to be a community leader in protecting the Keys environment. 

If you should have any questions related to the Sewer Plant construction upgrade, please contact Jeff Oeltjen at 305-367-7337

                 NORTH KEY LARGO UTILITY CORPORATION

                   ADVANCED TREATMENT AND WASTEWATER REUSE PROJECT UPDATE
 FEBRUARY 10, 2010

1.  Pay application # 8 processed for $482,000

 2. North Treatment Tank approximately 77% complete .See attached photo.

 3. Electrical Building approximately 29% complete.See attached photo.

 4.  Generator Building/ Blower Building approximately  44% complete.See attached photo. 
   

 5. Wastewater Reuse system is 20% complete

 6. Percentage of construction complete -  48%
     Percentage of construction time elapsed-   42%

     

   Please feel free to contact Jeff Oeltjen at 305-367-7337 with any questions or comments.

North Key Largo Utility Corporation

New Plant Facility and Assessment

Questions and Answers

Q.        What will this new plant facility do?

A.         The Florida Department of Environmental Protection is requiring all wastewater treatment plants in Monroe County to be upgraded to meet new wastewater standards.  These new standards require a substantial reduction of harmful constituents in our effluent.  This new treatment plant will meet these new requirements.  In addition, this new facility will allow us to re-use most of our effluent for irrigation purposes.

Q.        Do other communities in Monroe County have to meet these new standards?

A.         Yes, the standards apply equally to every community in Monroe County.

Q.        Are other communities in Monroe County complying to meet the new standards?

A.         Yes, all communities are in the process of complying or have already complied.

Q.        When does the Florida Department of Environmental Protection require compliance to these new standards?

A.         All communities in Monroe County are required to be in compliance by July 2010 unless they have made specific arrangements with the State.  Ocean Reef is currently negotiating with the State for an extension until September 30, 2011.  Since we have begun construction, we will be able to comply with the new completion date.

Q.        What will this project cost?

A.         The total cost of this new plant will be $14,500,000.  This cost includes design, oversight and all associated expenses.

Q.        How will this cost be split between residents and other commercial users such as the Club and ORCA?

A.         Based upon historic sewer usage, the residents will be charged 64.2% of the total and the commercial users will be charged 35.8%.

Q.        How much will each resident be charged and what options are available?

A.         First of all, each resident, whether living in a home, condo or Marina slip

will be charged the same amount.  Each resident will have two options: a lump sum payment of $4,500 or an annual payment of $600 for ten years.

Q.        When will this payment(s) be due?

A.         For those residents who choose the lump sum option, payment will be

required by September 30, 2009.  For those choosing the annual payment option, the first of ten annual payments in the amount of $600 will be due January 1, 2012.  This $600 payment includes principal and interest.

Q.        Can I change my mind and pay up front after September 30, 2009?

A.         Yes.  Simply pay the $4,500 plus accrued monthly interest.  If you decide to pay your assessment in full after September 30th, contact the NKLUC Office and they will let you know the exact amount due.

Q.        What if I elect the 10 year payment plan and subsequently sell my house during that period?

A.         The remaining balance is due when the property changes hands.

Q.        Can we apply for federal and state funding (stimulus money) to assist us

with this project?

A.         Yes, one reason the water re-use portion was incorporated was to make

our application for funding assistance more attractive.

Q.        If federal or state funding is granted, when will we know and how

will this affect the billing?

A.         Our government’s bureaucracy takes a long time so it is difficult to estimate when we will know.  Any state or federal funding received would be credited back to each of our customers based on the original percentage of participation.

• Total Lift stations: 37
• Miles of Sanitary Sewers: 30 + miles
• Gallons of Capacity: 550,000 gal per day
• RO Water Production: 1.6 million gal per day

Q What is the North Key Largo Utility Corporation (NKLUC)?

A: A Florida Corporation (not for profit) established to provide wastewater utility service for Ocean Reef.