Agenda 03/14/2017 Item #11D03/14/2017
EXECUTIVE SUMMARY
Recommendation to consider a request from the Florida Department of Environmental Protection
(FDEP) for Collier County to serve as a temporary receiver for the Everglades City Utilities system.
OBJECTIVE: To receive direction on the request from FDEP that Collier County consider serving as a
temporary receiver for the Everglades City Utilities (ECU).
CONSIDERATIONS: On February 21, 2017, FDEP met with staff to discuss the condition of the
ECU and to request that Collier County consider assisting in solving the problem. They
identified that the potable water facility has been included in the existing wastewater complaint
with the court, and that City management was amenable to work with FDEP on a plan to bring
the utility back into compliance.
FDEP noted that Collier County utilities has an exemplary record of delivering high quality
water and wastewater services and is the closest utility provider that could manage the combined
water/wastewater utility for the ECU. The concept of developing a temporary receivership
agreement was put on the table for further consideration. The receivership option could be a
provisional management vehicle until such time that a final solution is adopted. Ultimately, the
ECU may reach a point that it is able to take back the management. Alternatively, other
management structures via County Ordinance or Legislative action, considering the County
itself, or a third-party Government Utility Authority may be adopted to properly manage the
utility.
On March 3, 2017, Collier County received a letter from FDEP formally requesting assistance
and cooperation from Collier County Public Utilities (Attachment 1). The receivership concept
for a period of up to two years, would allow all interested parties time establish an entity that
would best serve the County’s and the City’s interests. The temporary nature of the receivership
may also allow for the solicitation and expenditure of available state funds for the rehabilitation
and replacement of the water and wastewater facility infrastructure. As a condition of accepting a
temporary receivership agreement, staff and the County Attorney would seek appropriate
indemnification and would identify a sufficient funding plan. At this time, staff is only seeking
Board approval to begin discussion with FDEP to refine the concept.
FISCAL IMPACT: Funds are available in the General Fund (001) for the initial legal ECU
receivership and general support up to $10,000 for special legal counsel expertise.
GROWTH MANAGEMENT IMPACT: None specific to this action.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved
as to form and legality, and requires majority vote for approval. -JAK
RECOMMENDATION: That the Board (1) Considers the FDEP request for Collier County to
serve as a temporary receiver, among other options, for the Everglades City Utilities; (2) directs
staff to work with FDEP and bring back appropriate action items in the near future for Board
action; (3) authorizes the County Attorney to retain special legal counsel to assist and provide
needed legal expertise in this process; and (4) encourages the City of Everglades City to work
11.D
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03/14/2017
cooperatively with FDEP and EPA to resolve the utility’s non-compliance.
Prepared By: G. George Yilmaz, Public Utilities Department Head
Joseph Bellone, Director, Financial Operations Support Division
ATTACHMENT(S)
1. FDEP Letter - Everglades CIty-3-3-17 (PDF)
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03/14/2017
COLLIER COUNTY
Board of County Commissioners
Item Number: 11.D
Doc ID: 2846
Item Summary: Recommendation to consider a request from the Florida Department of
Environmental Protection for Collier County to serve as a temporary receiver for the Everglades City
Utilities system. (George Yilmaz, Public Utilities Department Head)
Meeting Date: 03/14/2017
Prepared by:
Title: Division Director - Operations Support – Public Utilities Operations Support
Name: Joseph Bellone
03/06/2017 4:08 PM
Submitted by:
Title: Operations Analyst – Public Utilities Operations Support
Name: Heather Sweet
03/06/2017 4:08 PM
Approved By:
Review:
Public Utilities Department Joseph Bellone Level 1 Division Reviewer Skipped 03/06/2017 3:21 PM
Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 03/06/2017 4:10 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 03/06/2017 4:50 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 03/07/2017 9:41 AM
Budget and Management Office Mark Isackson Additional Reviewer Completed 03/07/2017 11:56 AM
Budget and Management Office Ed Finn Additional Reviewer Completed 03/07/2017 4:17 PM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 03/08/2017 1:19 PM
Board of County Commissioners MaryJo Brock Meeting Pending 03/14/2017 9:00 AM
11.D
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www.dep.state.fl.us
Florida Department of
Environmental Protection
South District
Post Office Box 2549
Fort Myers, Florida 33902-2549
SouthDistrict@dep.state.fl.us
Rick Scott Governor
Carlos Lopez-Cantera
Lt. Governor
Ryan E. Mathews
Interim Secretary
March 3, 2017
Mr. Leo E. Ochs, Jr. County Manager
County Manager’s Office
3299 Tamiami Trail East, Suite 202
Naples, FL 34112-5746
maryjobrock@colliergov.net
Re: Everglades City Utilities
Dear Mr. Ochs,
We appreciated the opportunity to discuss the referenced project with Collier County staff on
February 21. The Department shared that the potable water facility has been included in the
existing Waste Water treatment facility Complaint with the Court. We also explained the
funding limitations that have arisen from the non-compliance issues. Finally, we discussed paths
forward to ensure the affected citizens are provided safe and reliable water and wastewater
service.
The County has the opportunity to guide the future for the combined water/wastewater utility for
the City and surrounding unincorporated areas. The various options will take some time to vet,
but conditions at the facilities warrant a more expedited timetable for action. The Department is
working with the City to voluntarily turn over, through a current Court proceeding, the facilities
and assets to a receiver. A receiver could be a management entity (Special Board) created by
County Ordnance or Legislative action, the County itself, or a third-party Government Utility
Authority. The major concern for any receiver is the potential monetary liability involved with
the facility. The wastewater facility is under a Consent Order for essentially a complete
rebuilding effort.
11.D.a
Packet Pg. 287 Attachment: FDEP Letter - Everglades CIty-3-3-17 (2846 : Direction regarding Everglades City Utilities)
Mr. Leo E. Ochs, Jr. County Manager
March 3, 2017
Page 2 of 2
During our discussions, the concept of the County serving as temporary receiver evolved. This
could be the best option for several reasons. The Collier County Utilities department is of the
finest in the State, and is very capable of assuming an oversight management role quickly to
ensure continued service to the residents. As a temporary receiver for a period of up to two
years, a utility authority could be created that would best serve the County’s interests. The
temporary nature of the receivership may also allow for the solicitation and expenditure of
available state funds for the replacement of the wastewater facility infrastructure.
The Department requests the County consider serving as a temporary receiver for the Everglades
City Utilities by directing staff to vet this option with us to help the Commission determine if it
is an appropriate path forward.
Sincerely,
_________________________
Jon M. Iglehart
Director of
District Management
JMI/JC/isc
11.D.a
Packet Pg. 288 Attachment: FDEP Letter - Everglades CIty-3-3-17 (2846 : Direction regarding Everglades City Utilities)