Agenda 03/19/2003 S COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA
March 19, 9:00 a.m.
SPECIAL MEETING
NOTICE: ALL PERSONS WISHING TO SPEAK ON ANY AGENDA ITEM
MUST REGISTER PRIOR TO SPEAKING. SPEAKERS MUST REGISTER
WITH THE COUNTY MANAGER PRIOR TO THE PRESENTATION OF THE
AGENDA ITEM TO BE ADDRESSED.
COLLIER COUNTY ORDINANCE NO. 99-22 REQUIRES THAT ALL
LOBBYISTS SHALL, BEFORE ENGAGING IN ANY LOBBYING ACTIVITIES
(INCLUDING, BUT NOT LIMITED TO, ADDRESSING THE BOARD OF
COUNTY COMMISSIONERS), REGISTER WITH THE CLERK TO THE
BOARD AT THE BOARD MINUTES AND RECORDS DEPARTMENT.
REQUESTS TO ADDRESS THE BOARD ON SUBJECTS WHICH ARE NOT ON
THIS AGENDA MUST BE SUBMITTED IN WRITING WITH EXPLANATION
TO THE COUNTY MANAGER AT LEAST 13 DAYS PRIOR TO THE DATE OF
THE MEETING AND WILL BE HEARD UNDER "PUBLIC PETITIONS".
ANY PERSON WHO DECIDES TO APPEAL A DECISION OF THIS BOARD
WILL NEED A RECORD OF THE PROCEEDINGS PERTAINING THERETO,
AND THEREFORE MAY NEED TO ENSURE THAT A VERBATIM RECORD
OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE
TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED.
ALL REGISTERED PUBLIC SPEAKERS WILL BE LIMITED TO FIVE (5)
MINUTES UNLESS THE TIME IS ADJUSTED BY THE CHAIRMAN.
IF YOU ARE A PERSON WITH A DISABILITY WHO NEEDS ANY
ACCOMMODATION IN ORDER TO PARTICIPATE IN THIS PROCEEDING,
YOU ARE ENTITLED, AT NO COST TO YOU, TO THE PROVISION OF
CERTAIN ASSISTANCE. PLEASE CONTACT THE COLLIER COUNTY
FACILITIES MANAGEMENT DEPARTMENT LOCATED AT 3301 EAST
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TAMIAMI TRAIL, NAPLES, FLORIDA, 34112, (239) 774-8380; ASSISTED
LISTENING DEVICES FOR THE HEARING IMPAIRED ARE AVAILABLE IN
THE COUNTY COMMISSIONERS' OFFICE.
1. INVOCATION AND PLEDGE OF ALLEGIANCE
..
THE BOARD TO CONSIDER MATTERS/RESOLUTION REGARDING
PROPOSED LEGISLATION IN THE CURRENT LEGISLATIVE SESSION
RELATING TO WATER & SEWER UTILITIES AND TO DETERMINE
ACTIONS, IF ANY, TO BE TAKEN, INCLUDING BUT NOT LIMITED TO,
USE OF OUTSIDE COUNSEL, LOBBYIST(S) FOR COLLIER COUNTY
AND DIRECTION BY THE BOARD.
ANY OTHER MATTERS PERTAINING TO THIS LEGISLATIVE CYCLE.
Governor sent letter to BCC regarding a 3/25 meeting to be held in Tallahassee
with the Governor regarding south golden Gate Estates Lands.
3. ADJOURN
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EXECUTIVE SUMMARY
ADOPT A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS TO
SUPPORT ENACTMENT INTO LAW OF FLORIDA SENATE BILL NUMBER
140 AND IDENTICAL FLORIDA HOUSE BILL NUMBER 963, WHICH
PROPOSED BILLS AMEND CHAPTER 163, FLORIDA STATUTES, TO
PROVIDE THAT NO GOVERNMENTAL ENTITY CREATED PURSUANT TO
CHAPTER 163, FLORIDA STATUTES, CAN ACQUIRE INVESTOR-OWNED
WATER OR WASTEWATER UTILITIES WITHOUT COMPLIANCE WITH
SPECIFIED REQUIREMENTS THAT PROVIDE ACCOUNTABILITY, DUE
DILIGENCE, FINDINGS BY A DISINTERESTED GOVERNMENTAL ENTITY
THAT EACH SUCH PROPOSED ACQUISITION IS IN THE PUBLIC INTEREST,
AND THAT EACH "HOST GOVERNMENT", INCLUDING COLLIER COUNTY,
MUST APPROVE EACH SUCH PROPOSED ACQUISITION WITH REGARD
TO EACH SUCH UTILITY SYSTEM LOCATED WITHIN THE BOUNDARIES OF
THE HOST GOVERNMENT; ALSO TO AUTHORIZE LOBBYING EFFORTS IN
TALLAHASSEE AS SPECIFIED HEREIN
OBJECTIVE: To authorize lobbying by Collier County's approved lobbyist with regard
to water/wastewater utility issues, Michael Twomey (in Tallahassee), to support
enactment into Florida law the currently proposed amendments to Chapter 163, Florida
Statutes, which proposed amendments are to add critically important safeguards to
protect interests of a water or wastewater utility's customers in the event an entity created
pursuant to Chapter 163, Florida Statutes, proposes to acquire a water or wastewater
utility, or both.
CONSIDERATIONS: Chapter 163, Florida Statutes, allows certain described
governmental entities to be formed by interlocal agreement for the purpose of acquiring
specified investor-owned utilities, including water and wastewater systems.
In 2002, pursuant to Chapter 163, Florida Statutes, the City of Milton and the City of
Gulf Breeze entered into an interlocal agreement to form an entity called "The Florida
Water Services Authority" (the "Authority") to purchase approximately one hundred and
fifty-two (152) water and/or wastewater systems that are located in twenty-six (26)
Florida counties. The seller of these 152 systems is the Florida Water Services
Corporation ("FWS"). Two of these 152 utility systems owned by FWS are located in
Collier County. The City of Milton and the City of Gulf Breeze are located in Santa Rosa
County (in Florida's panhandle). Neither of those two Cities is served by any FWS
system.
Many counties (including Collier County), municipalities (including the City of Marco
Island), and civic associations served by FWS have many serious concerns regarding this
proposed sales transaction because it is believed that the Authority would not be
accountable to the customers of these systems, or be accountable to any county, to any
other municipality, or to the Florida Public Commission, with regard to customer service
rates, charges, service availability, or any other regulatory oversight as currently
exercised by the Florida Public Service Commission or by agencies of counties that have
elected to be outside of the PSC's regulatory jurisdiction, one of which is Collier County.
Several lawsuits have been filed in various courts by local governments, by customer
groups, and by the Florida's Public Service Cormnission. Presently, the proposed sale
cannot proceed unless and until approved by the Florida Public Service Commission due
to issuance of a permanent injunction by the Florida Circuit Court in Leon County
(Tallahassee). Notwithstanding press releases recently issued by FWS that it is no longer
pursuing the sale to the Authority, FWS is appealing issuance of this injunction.
Florida Senators Argenziano and Cowin are sponsoring Florida Senate Bills number 140
(and Florida Senate Bill number 998), which Bills amend Chapter 163, Florida Statutes,
to close existing loopholes in Chapter 163, Florida Statutes, and to establish critically
needed additional safeguards. An identical bill has been filed in the House (House Bill
963). Staff is convinced that Chapter 163, Florida Statutes, must be amended to protect
interests of customers of water and wastewater systems that can be jeopardized under the
currently existing provisions in Chapter 163, Florida Statutes. Staff believe that
provisions need to be added to Chapter 163, Florida Statutes, to require accountability
fi.om every water and/or wastewater entity (or both) formed pursuant to Chapter 163,
including mandating meaningful due diligence procedures and to require that a neutral
governmental entity or agency make formal findings of fact and conclusions of law that
each such proposed acquisition pursuant to Chapter 163, Florida Statutes, is in the public
interest.
Staff believes that FWS and the Authority are lobbying to have Chapter 163, Florida
Statutes, amended to eliminate all existing judicial and administrative impediments to the
proposed sale, and to legalize the proposed sales transaction from FWS to the Authority.
Staff believes that any such amendments to Chapter 163, Florida Statutes will be
extremely detrimental to customers of these 152 utility systems. Staff believes that
Collier County should take all reasonable and immediate actions to prevent amendments
to Chapter 163, Florida Statutes, or any other general law of Florida, that retain the
existing loopholes in Chapter 163, Florida Statutes, or that weaken any interests of any
customers of any water or wastewater system that may be acquired by any entity created
pursuant to Chapter 163, Florida Statutes, including, especially, the two FWS systems in
Collier County. Staff recommends the immediate utilization of lobbying services of
Michael Twomey (in Tallahassee) to support enactment into Florida Law of Senate Bill
number 140, Florida Senate Bill number 998, and identical House Bill number 963 and to
counteract legislative efforts supported by FWS and/or the Authority to enact into Florida
law any amendment to any Florida Statute that threaten any interest of any of the
customers of the two FWS systems located in Collier County.
FISCAL IMPACT: Collier County's registered Lobbyist for water and wastewater
issues is Michael Twomey, of Tallahassee. Mike Twomey's contract with Collier County
provides that the County pay Mr. Twomey $150 per hour for services rendered, plus
documented out-of-pocket expenses. Although it is difficult to predict the amount of
effort that will be required to accomplish the County's desired results as specified herein,
it is anticipated that the costs of the contemplated lobbying efforts will not exceed
$15,000. Because of a lawsuit filed by FWS against the County and the Clerk regarding
alleged improper use of Utility Regulatory Assessment Fees to fund costs of litigation
and other efforts to retain the County's regulatory jurisdiction over the water and
wastewater utility systems that Collier County regulates, it is recommend that for the time
being the County's lobbying efforts be funded from the county's general fund. Staff
expects that the county will eventually be able to reimburse the general fund from the
Utility Regulation Trust Fund.
GROWTH MANAGEMENT IMPACT: Approval of these lobbying efforts will have
no impact on growth management.
RECOMMENDATION: That the Board adopt the attached Resolution to support
enactment of Florida Senate Bill number 140 and identical Florida House Bill number
963 into Florida's general law, and enactment of associated budget amendments if any,
and authorize lobbying efforts to defeat any proposed Florida legislation that will conflict
with the goals of the County as specified herein.
SUBMITTED BY:
REVIEWED BY:
D~, Wallace, Director
Utility & Franchise Regulation
Thomas C. l~almer
Date:
APPROVED~ A~ Date: ~:'-/?-O__~
Joseph K. Schmitt, Administrator
Community Development & Environmental Services Division
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RESOLUTION NO. 2003 - __
A RESOLUTION OF COLLIER COUNTY, FLORIDA, SUPPORTING
ENACTMENT INTO LAW AMENDATORY LANGUAGE TO SECTION 163.01,
FLORIDA STATUTES, AS CURRENTLY WRITTEN IN PROPOSED FLORIDA
SENATE BILL NUMBER 140 AND FLORIDA HOUSE BILL NUMBER 963,
WHICH RECOMMENDED BILLS PROVIDE NECESSARY
ACCOUNTABILITY, DUE DILIGENCE, AND THAT PUBLIC INTEREST
DETERMINATIONS BE MADE BY THE FLORIDA PUBLIC SERVICE
COMMISSION REGARDING ACQUISITION OF INVESTOR-OWNED WATER
AND WASTEWATER UTILITIES, AND, AS TO SUCH SYSTEMS WITHIN THE
BOUNDARIES OF THE HOST GOVERNMENT, MANDATE AFFIRMATIVE
CONCURRENCE OF ALL HOST GOVERNMENTAL ENTITIES PRIOR TO
COMPLETION OF EACH SUCH ACQUISITION.
WHEREAS, Senate Bill number 140 and House Bill number 963 are currently
being proposed for enactment into law by action of the Florida Legislature; and
WHEREAS, proposed amendatory text in SB140fHB963 add necessary
safeguards to Chapter 163, Florida Statutes, to ensure accountability, due diligence and
that prerequisite public interest determinations be made by the Florida Public Service
Commission regarding proposed acquisitions of investor-owned water and wastewater
utilities by every governmental entity created pursuant to Chapter 163, Florida Statutes,
and also regarding such utility systems within the boundaries of the host government,
requiring approval by each host governmental entity prior to effective completion of each
such proposed acquisition of those systems.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that:
The Board of County Commissioners of Collier County, Florida supports
adoption into Florida law proposed Senate Bill number 140 and proposed
House Bill number 963, which, if enacted, will amend Chapter 163, Florida
Statutes, in a manner acceptable to Collier County to protect customers of the
subject water and wastewater systems.
The Board of County Commissioners of Collier County, Florida, requests that
its local Legislative Delegation actively support enactment of proposed
Florida Senate Bill number 140 and Florida House Bill number 963.
The Florida Association of Counties may utilize this Resolution as it deems
appropriate to support enactment of proposed Senate Bill number 140 and
Florida House Bill number 963 to amend Chapter 163, Florida Statutes, to
protect customers of the subject water and wastewater utility systems.
THIS RESOLUTION ADOPTED after motion, second and majority vote in
favor of adoption this __ day of ,2003.
ATTEST:
DWIGHT E. BROCK, CLERK
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
By: By:
Deputy Clerk
TOM HENNING, Chairman
Approved as to form
and legal sufficiency:
Thomas C. Palmer
Assistant County Attorney