Exh 8BAGENDA ITEM 8B
JUNE 9, 2003
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETIlaTG
STAFF REPORT
AGENDA ITEM; Privatization of Naval Station Mayport - Submission of Proposal
SUBMITTED BYo Donna Kaluzniak,.CEP, Utility Director
- DATE: May 30, 2003
BACI~GI2OUND: The United States Navy has issued a Request for Proposals (RFP), to
include technical and price proposals for utility privatizations at several facilities in the southeast,
including the Naval Station at Mayport; ,Florida (including off-base housing}. The Navy's R>~P
encompasses all utilities-water, sewer, electric;. and gas,. but.-allows- proposers to submit
packages f®r certain utility combinations. The City ®f Atlantic Beach contracted with Gannett
pleming, Inc._ to assist in the preparation of technical and price proposals for the water and sewer
systems at NAVSTA Mayport. Proposals are due June 24, 2003.
The Economic/Price Proposal (Volume I) and Technical Proposal (Volume II) have been
prepared for submission to the Navy, with all cost information based upon the Navy's Technical.
Data Package as required by their RFP.
Volume I-Economic/Price Propdsal includes the ,following. information:
^ Total purchase price .for the entire system (including. Ribault Bay) _ $11 Million
^ Total Capital based on current- value (over a 50 year time period) = $31.5 Million.
^ Annual Operating & Maintenance Costs = $ 2:2 Million
^ Operating Margin= $388 Thousand/year
^ Navy's cost. for water and sewer $8.10/1 000 gallons
The capital program is designed to gradually bring the Navy's system up to Atlantic Beach
standards. Also included in this volume are the City's desired contract. terms and conditions,
which will protectthe City from liability..
Volume II-Technical Proposal includes:.
Evidence of the City's ability provide water and sewer services to the Navy
Proposed staffing plan, which includes 19 additional personnel
Transition plan
.Joint use advantages, including reuse and water interconnections
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AGENtDA ITEM 8B
JUNE 9, 2003
This phase of the privatization process will result in the Navy evaluating the proposals subnritted,
and establishing a competitive range comprised ofthe most highly rated proposals. Those firms
or agencies in the competitive range will then be invited into discussions on their proposals; and
final revisions can be made; and details of final terms and conditions determined.
BUDGET: Amid year budget adjustment. was approved to-fund the' cost for Gannett Fleming
to provide assistance in preparing the proposal in the.amount of $124,365. Sc®pe of work to be
completed by City staffwas estimated at approximately 254 hours, to have a value of$31,411.
No further expenditures are needed at this poinf in order to submit the proposal to the Navy.
RECOMMENDATION: Authorize the Mayor to sign the transmittal documents, and authorize
staffto submit the Ecanomic/Price.~roposal.(Volume I) and Techical Proposal (Volume II).for
Utility Privatization of Naval Station Mayport to-the U.S. Navy.
ATTACHMENTS: Economic/Price Proposal (Volume I} and Techical Proposal (Volume II}
For TJtili#y Privatizati®n of Naval Station Mayport are available in the. City Clerk's office.
VVED BY CITY MANAGERS
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