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KEYS ENERGY SERVICES INVESTIGATES WHETHER TO SELL OR LEASE CUDJOE KEY PROPERTY TO FLORIDA KEYS AQUEDUCT AUTHORITY

01/20/2004 ~ The Utility Board approved the idea of either selling or leasing the Keys Energy Services’ (KEYS) Cudjoe Key Peaker site property to Florida Keys Aqueduct Authority (FKAA) for pump station/storage and future Waste Water Facilities.

During the regular Utility Board meeting Wednesday, the Utility Board directed KEYS staff to work with FKAA on developing the details of the transaction. Board members indicated a preference toward selling the property.

The 1.2 acre Cudjoe Key Diesel site has been the location of two high speed diesel generating units capable of producing 5 megawatts since 1966. The units are scheduled for retirement in 2006, and the utility does not see a future need for the site.

FKAA has an immediate need to obtain property for a water storage/distribution pump station in the Cudjoe Key area.

“Customers should benefit by the selling of this property that they helped originally purchase and have maintained over the years,” said Board chairman Robert Padron.

In other business, the Utility Board:

- Approved the emergency purchase of 69 Kilovolt (kV) cable for the White Street Substation from Electrical Supply of Tampa. The new 69 kV cable will replace the temporary overhead line put in place to reenergize the transmission loop around the City and maintain system reliability after the prior underground 69 kV cable failed.

- Awarded the purchase of Mechanical and Programmable Meters and Instrument Transformers to Utilicor and Wesco based on their bids being the lowest and/or best bids complying with specifications.

- Approved revisions to KEYS travel policy. Changes include: reimbursement of meals up to the amount set forth in the Governmental Services Administration (GSA) with appropriate receipts, reimbursement for use of privately owned vehicles utilitizing the IRS guidelines, and reasonable reimbursement for incidentals (i.e.: tips for porters, baggage carriers, etc.) not to exceed Florida Statutes.

- Approved a budget amendment to install a power transformer at the Key West Diesel Substation (Truman Annex).

The regular meeting of the Utility Board took place at 5:00 p.m., January 14th, in the Louis Carbonell Board Room of the William Arnold Service Building, 1001 James Street, Key West.

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