Eglin AFB Community Partnership Initiative

1. Eglin AFBCommunity Partnership Initiative Gordy Fornell Lt. Gen. USAF ( retired) Chairman Mid-Bay Bridge Authority Board Niceville, Florida

2. Eglin Challenges • Eglin and other AF installations are facing new budget challenges to sustain and maintain infrastructure • Eglin is also facing new energy challenges and mandates to use renewable energy sources and reduce energy use • DOD installations and communities are exploring new ways to partner to sustain operations and maintain and attract new missions and operations • Eglin has a deferred substantial maintenance backlog

3. Eglin Partnerships • Eglin AFB has enjoyed a series of long and productive partnerships with local communities and State organizations that have helped to sustain the installation • New challenges present a need to renew and expand the use of public-private and public-public partnerships. • Eglin and community leaders are exploring new ways to enhance partnerships initiatives to the mutual benefit of the Air Force and the community

4. Eglin Partnerships • Air Armament Museum – Lease/MOU/MOA • Educational Partnerships – Education Contract • Mid-Bay Bridge Authority – Easement • Okaloosa County Regional Airport- EUL/JUA • Arbennie Pritchett Water Reclamation Facility – EUL • Emerald Breeze – Hotel EUL • U of Florida – Lease/EUL • Housing Privatization • Recycling Program – • Healthcare Services –

5. Eglin Examples- Models for the Future

6. Real Property Out Grants • Eglin Air Force Base has developed successful out grants with Community organizations that have generated over $30 Million of consideration back to Eglin in the past 5 years reducing costs to the installation.

7. VPS/Northwest Florida Regional Airport • The Northwest Florida Regional Airport (*VPS), is situated on Eglin and provides essential scheduled commercial air passenger service for a large portion of the Northwest Florida area • Operates under 25 year lease between Okaloosa County and USAF • Generates over $318,000 a year in in kind consideration for Eglin

8. Consideration • The lease is for 25 years for 130 acres and is for an annual base amount of $318,000 in 2008 a year and escalates at 3% a year. • Payments are made quarterly into account from which work is provided to Eglin. • A separate Joint Use Agreement allows commercial airlines to use runway and pay fees to maintain airfield

9. Arbennie Pritchett Water Reclamation Facility • Okaloosa County constructed a new 10 million gallon per day (mgd) water reclamation facility (WRF). • The new WRF was constructed on leased property located on Eglin Air Force Base that was being used by the Okaloosa County Water and Sewer Department (OCWS) for disposal of treated effluent from the previous operations. • A 30-year lease was negotiated between the County and the Air Force for 255 acres to allow the construction and operation of the new WRF

10. Types of consideration • A 30-year lease was negotiated between the County and the Air Force for 255 acres in • $325,000 a year in in-kind consideration is to be provided to Eglin AFB which escalates at 2 % a year and includes work such as : • Waterline maintenance • Other maintenance as required • $1. 95 Million to date since 2006

11. Unique Consideration • Funds $ 1.38 Million were used for Okaloosa County Water and Sewer to 'up-size' the force main from Cantonment Area for the 7th Special Forces to the county’s new Arbennie Pritchett Water Reclamation Facility in Fort Walton Beach • Enabled Eglin to tie both Dule Field and Camp Rudder into the county's system • Reduces costs for military utility ops • OCWS constructed w/in-house labor – lowered cost substantially

12. New EUL on Eglin Property • November 15, 2012 Groundbreaking for Emerald Breeze • A 50 year EUL signed with private firm for the 17 acre Eglin A-5 Test Site on Okaloosa Island • A $25 Million project to build a 152 room hotel benefiting Eglin and the community. • Air Force uses rooftop for radar equipment and receives consideration • Hotel offers discounts to military personnel

13. Mid Bay Bridge Authority Easement A Value Based Transaction • Eglin Air Force Base will realize over $30 million in payment in-kind from the Mid-Bay Bridge Authority for the use of Eglin property for a new connector road being constructed. • “The funding comes at a critical time and will help support construction/maintenance and repairs.” Vicki Preacher, 96th Civil Engineer Group Deputy

14. Consideration Projects • New runway lighting • Runway stripping and improvements • Fitness track • New fire suppression equipment • Fire station renovation • Okaloosa Darter Habitat Restoration • Solar thermal heating systems • Energy conservation projects

15. Unique Collaboration • $800,000 was used for an energy conservation project with Gulf Power the local energy company. • Controls retro-commissioning and chiller replacement benefited Eglin AFB by reducing energy costs

16. New Energy Initiatives • Need to meet new energy mandates are generating more energy partnerships • Eglin and utility providers have established a unique agreements to conserve energy to meet the energy mandates and save O&M dollars. • Over $13 Million in projects resulting in $1.4 million in annual savings and 30 % reduction in 2003 energy baseline. • More projects to follow using performance contracts with utility companies.

17. Utility Energy Service Contracts10 USC § 2913 • A comprehensive method to identify and complete energy conservation and management projects • Negotiate agreements with sole source with utility companies for cost effective programs to meet the needs of the military customer • Financing by utility company • Interest paid on the financed amount • Repaid with funds available for payment of utilities • President Obama in December 2011 called on agencies to award at least $2 billion worth of performance contracts over the next two years.

18. Opportunity to Refocus • Opportunity for Eglin and surrounding communities to reenergize partnership initiatives and build on our successes. • Team to concentrate efforts, establish partnerships with public-private partners • Maintain, sustain, improve installation and missions