Week 3, March 13, 2017

Weekly Executive Summary Street Resurfacing and Natural Gas Improvements Resurfacing Completion (Group 9) Milling: 27.84% Paving: 27.49% Contract Time: 15.57% Total Contract Complete: 23.94% City Blocks-Milling: 55.5 of 182.5 City Blocks-Paving: 42.0 of 182.5 County Blocks-Milling: 7.0 of 8.0 County Blocks-Paving: 4.0 of 8.0 Resurfacing Completion (Group 7) Milling: 00.00% Paving: 00.00% Contract Time: 04.16% Total Contract Complete: 00.00% City Blocks-Milling: 0.0 of 114.0 City Blocks-Paving: 0.0 of 114.0 Section 1: Dashboard Resurfacing Program Group 7(Downtown): Roads, Inc. Group 8 (Central): Midsouth Paving Group 9 (West): Midsouth Paving Natural Gas Improvements Section 1A (Downtown-W): Raw Construction Section 2A (South Palafox): Raw Construction Resurfacing Completion (Group 8) Start Date: TBD Milling: 00.00% Paving: 00.00% Contract Time: 00.00% Total Contract Complete: 00.00% City Blocks-Milling: 0.0 of 154.0 City Blocks-Paving: 0.o of 154.0 County Blocks-Milling: 0.0 of 3.25 County Blocks-Paving: 0.0 of 3.25 Natural Gas Completion Section 1A: 5.00% Section 2A: 5.00% Date: 03/13/2017

Weekly Executive Summary Street Resurfacing and Natural Gas Improvements Section 2: Talking Points C Where is milling and resurfacing work underway?  Is the milling and resurfacing program on-schedule? Construction crews are working in west Pensacola (Group 9) to mill and resurface city streets. Plans are for work to begin downtown (Group 7) the week of March 13. Yes. After three weeks, the milling and resurfacing work is on-schedule.   How much milling and resurfacing work is planned? The notice to proceed for work in the central portion of the city (Group 8) is pending. About 1800 city blocks will be milled and resurfaced. That equates to approximately 119 miles. None of the streets in the program have been resurfaced in the last 10 years. How long will work continue in west Pensacola and downtown? Work on both the 120-day contracts started this month. Pending time that could be added for inclement weather or other legitimate delays, work in both groups should conclude this summer. Date: 03/13/2017

Weekly Executive Summary Street Resurfacing and Natural Gas Improvements Section 2: Talking Points C Are there any impacts associated with resurfacing activities? Why is street resurfacing important? City tax payers have a significant investment in the local transportation infrastructure.  Proper maintenance is needed to safeguard this investment. With any construction program of this magnitude and complexity there will be impacts. For street resurfacing, these impacts include:   Construction vehicle traffic. The asphalt used to pave our streets and roadways is a durable material, but over time, large trucks and heavy traffic exact a tremendous toll. The daily stress of traffic causes surface cracks in the asphalt pavement. Water seeping through these cracks accelerates the deterioration of the roadway. Noise. Dust from the milling work. Temporary street closures and the need for detours. Sidewalks blocked by construction. On-street parking restrictions. This results in unsightly cracked and crumbling streetscapes that degrade the appearance of our city. In addition, daily commutes turn into bumpy tests of endurance that cause excessive wear-and-tear on our vehicles. Eventually, the street’s underlying foundation can be damaged to the point that expensive repairs and re-construction are needed. Are there other impacts? Though rare, utilities are sometimes impacted during milling operations. On Fri., March 10, a water line break occurred near the corner of North M and West Gonzalez Streets. ECUA crews were dispatched to repair the break. Date: 03/13/2017

Weekly Executive Summary Street Resurfacing and Natural Gas Improvements Section 2: Talking Points C How does this program protect the taxpayer’s investment in local transportation infrastructure? To date, zero vehicles have been relocated. However, it is important for property owners to move their vehicles before resurfacing work begins on their street. They’re being notified by mail in advance of the work, then by information left on their door 24-48 hours before work begins on their street. Cars that remain parked on the street when it is time for milling work to begin will be relocated. Milling and resurfacing removes old, deteriorated, and cracking asphalt and replaces it with new, fresh layers that protect the rock and soil foundation of the roadway. What is the status of the natural gas infrastructure improvement program? Delaying milling and resurfacing work inevitably results in the need for more extensive roadway repairs and re-construction that can cost three times as much (or more) than milling and resurfacing. Work began last week in the South Palafox and Downtown West sectors (see the map Section 5 of this report).   How many cars have been relocated in advance of milling and resurfacing? What is being done to improve the natural gas distribution system? Approximately 46-miles of underground, cast-iron pipes are being replaced with corrosion-resistant polyethylene pipes. Date: 03/13/2017

C Date: 03/13/2017 Section 2: Talking Points Why is this being done? Yes. The work requires disconnecting customers from the existing system and immediately re-connecting them to the new one. Pensacola Energy will be available for customers who need assistance in re-igniting pilot lights or other actions needed to re-establish service. Assistance will be provided free of charge. Customers should call Pensacola Energy at (850) 474-5300 for assistance. The cast-iron pipes represent an aging component of the city’s natural gas distribution system. Replacing these pipes with new, polyethylene pipes will reduce maintenance costs and improve the overall performance of the system.   Do vehicles need to be moved in advance of natural gas system work? What does the work entail? Construction crews are boring and digging in the city-owned right-of-way to install the new pipes. Once enough of the new main is installed the crews will begin connecting customers to it. Yes, vehicles parked on the city-owned right-of-way must be moved before work begins. Residents and tenants are being notified approximately 24-48 hours before work is scheduled to begin on their street. Will there be any interruption of service? Date: 03/13/2017

Weekly Executive Summary Street Resurfacing and Natural Gas Improvements Section 3A: Street Resurfacing Photos A “before” picture on North V Street, between West Cervantes and West Strong Streets. Milling underway on North V Street, between West Cervantes and West Strong Streets. Date: 03/13/2017

Weekly Executive Summary Street Resurfacing and Natural Gas Improvements Section 3A: Street Resurfacing Photos (continued) New pavement going down on North V Street, between West Cervantes and West Strong Streets. New asphalt applied on North V Street. In two to four weeks the pavement markings will be applied. Date: 03/13/2017

Weekly Executive Summary Street Resurfacing and Natural Gas Improvements Section 3B: Natural Gas System Improvements Photos Boring on A Street, between Wright and Gregory Streets. Boring on north side of Government Street, near Baylen Street. Date: 03/13/2017

Weekly Executive Summary Street Resurfacing and Natural Gas Improvements Section 3B: Natural Gas System Improvements Photos (continued) Future tie-in pit near a residential property on North A Street. Tie-in pit installation on Government Street, near Baylen Street. Date: 03/13/2017

Weekly Executive Summary Street Resurfacing and Natural Gas Improvements Section 4: Street Resurfacing Underway Date: 03/13/2017

Weekly Executive Summary Street Resurfacing and Natural Gas Improvements Work began March 6 Section 5: Natural Gas Improvements Map Date: 03/13/2017

C Date: 03/13/2017 Section 6: Public Information Narrative More than 1800 city blocks (119 miles) of Pensacola streets are being milled and resurfaced, and approximately 46-miles of aging natural gas lines replaced in the city’s $30-million infrastructure improvement program. Traffic congestion. Noise, vibration, and dust. Temporary street closures and short-term detours. Blocked sidewalks. On-street parking restrictions. To date, more than 56-thousand square yards of pavement has been milled and more than thee-thousand tons of new asphalt placed. Property owners and tenants in impacted areas are being notified by mail. Then, approximately 24-48 hours before work is planned on a specific street, construction personnel are distributing information door-to-door. It is important that property owners remove vehicles parked on the street or on the city-owned right-of-way so that work can begin. Milling and resurfacing is focused in west Pensacola, with work on downtown city streets slated to begin later this week. Work in both areas will continue until this summer. At the same time, Pensacola Energy crews are at work in the Downtown West and South Palafox areas of the city replacing aging, cast-iron natural gas lines with new, corrosion-resistant polyethylene pipes. Information about the resurfacing work is available by calling the city’s engineering consultant, Atkins, Inc., at (850) 380-9188. Information on the natural gas system improvements is available by calling Pensacola Energy at (850) 474-5300. At times, the street resurfacing and natural gas improvements may result in impacts that include:   Date: 03/13/2017