Questions arise over FKAA ties, ILAs and Conflicts of Interest amid Veliz Application for Interim District V Commission Seat
FKAA chief lists no conflicts in bid for interim commission seat, but multiple interlocal agreements — and a 20-year records request — highlight deep links between the utility and the city.
Florida Keys Aqueduct Authority Executive Director Greg Veliz’ application seeking appointment to the District V interim City Commission seat on Tuesday — is drawing renewed scrutiny of the city’s relationship with FKAA and Veliz’s long public career inside Key West city government.
Veliz, who previously served as assistant city manager and later city manager before leaving for FKAA, reported no conflicts of interest in his application. Critics within both the city and FKAA say that given his dual role as FKAA executive director and former city official, he should have disclosed potential conflicts in the interest of transparency.
“The fact that he doesn’t see agreements between the City and FKAA as potential conflicts is a problem,” said one long-time resident of District V.
Public records show the Aqueduct Authority and the City of Key West are currently bound by multiple interlocal agreements, covering a variety of issues.
These are the most recent, readily available ILAs, but Above the Fold has filed a formal Florida Sunshine Law request seeking all interlocal agreements between the two agencies from the past 20 years — including those negotiated or executed during Veliz’s tenure inside City Hall. The request also seeks related amendments, renewals and exhibits to establish the full operational and financial scope of FKAA’s ties to the city.
Current FKAA/City of Key West ILAs
Fleming / Eaton Street Utility Transfer (2023): Decommissioned City sewer force main swapped for FKAA water line.
White Street Resurfacing (2024): Cost-sharing for full street resurfacing between Fleming & Newton Streets.
Eaton Street Infrastructure Improvements (2024): Coordination with FKAA, Monroe County & City for street/utility projects.
Newton Street Asphalt Paving (2024): Cost-share and coordination for paving between White & Eisenhower Drive.
FKAA Utility Billing Agreement (Ongoing): FKAA bills city utility services per agreement.
Note: These are the most recent, publicly available ILAs. A full 20-year set, including agreements executed while Veliz served as assistant city manager and city manager, has been requested from the City of Key West via a Florida Sunshine Law records request.
What Are Interlocal Agreements — and Why They Matter
In Florida, a municipalities and a separate public agency like FKAA can enter into interlocal agreements (ILAs) to share resources, responsibilities, or funding for public services. These agreements outline who does what, who pays for it, and how projects are managed.
Infrastructure and Utilities: FKAA provides water and wastewater services, some of which overlap with city operations. ILAs define which agency maintains pipes, treatment plants, and pumping stations.
Shared Projects: Road repaving, reclaimed water delivery, and capital improvements often require both entities to cooperate — and ILAs spell out cost-sharing and timelines.
Transparency and Accountability: When a City Commissioner also has ties to FKAA — like Veliz — ILAs matter. Any vote touching city resources, utilities, or budgets may intersect with FKAA operations and interests.
But his candidacy arrives as the city confronts its most serious public-trust crisis since the Bum Farto era, prompting concern among some residents about appointing the executive director of a major utility with broad regulatory and financial overlap with the city.
FKAA Interlocal Agreements and Transparency Questions
As FKAA executive director, Veliz oversees a utility with formal agreements linking the city and FKAA across infrastructure, funding and regulatory responsibilities.
While only the most recent agreements are readily available, they illustrate close collaboration between the City and FKAA leadership.
Transparency Concerns
Critics say that because of Veliz’s dual role as FKAA executive director and former city official, he should have disclosed potential conflicts. Any commission vote involving FKAA could intersect with agreements he now oversees and should require recusal. The City has been grappling with concerns about transparency following the release of a scathing grand jury report released last year.
A relationship that some insiders might see as “convenient,” outsiders could see as corrupt.
Upcoming Commission Action:
The City Commission is scheduled to select an interim commissioner tomorrow. The meeting begins at 9 a.m. tomorrow at City Hall, 1300 White Street, with an afternoon session set for 5 p.m. The proceedings will be live-streamed on the city’s website. Members of the public can also register comments in advance via eComment.