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Resolution 2017-123 RESOLUTION NO.2017- 1 2 3 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AS THE GOVERNING BOARD OF COLLIER COUNTY, A POLITICAL SUBDIVISION OF THE STATE OF FLORIDA AND ACTING AS THE EX-OFFICIO GOVERNING BOARD OF THE COLLIER COUNTY WATER-SEWER DISTRICT NOTIFYING THE GOVERNING BOARD OF THE FLORIDA GOVERNMENTAL UTILITY AUTHORITY OF THE COUNTY'S INTENT TO INITIATE THE PROCESS FOR TRANSFER OF THE GOLDEN GATE WATER AND WASTEWATER UTILITY SYSTEM TO THE COUNTY; AND PROVIDING FOR APPLICABILITY AND AN EFFECTIVE DATE. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY,FLORIDA,AS FOLLOWS: SECTION 1. AUTHORITY. Pursuant to Chapter 125, Florida Statutes, the Board of County Commissioners (the "Board") of Collier County, Florida(the "County") has all the powers of local self- government including the power to acquire, own, improve, operate, maintain, and dispose of water and wastewater utility facilities. SECTION 2. COUNTY RIGHT TO ACQUIRE THE WATER AND WASTEWATER SYSTEM KNOWN AS THE GOLDEN GATE SYSTEM FROM THE FLORIDA GOVERNMENTAL UTILITY AUTHORITY. County staff has concluded preliminary financial and technical due diligence relating to the potential transfer to the Collier County Water-Sewer District ("District") of the water and wastewater systems serving the Golden Gate area (the "Golden Gate System") which are currently owned by the Florida Governmental Utility Authority ("FGUA"). The FGUA is a utility authority created pursuant to section 163.01(7)(g)(1), Florida Statutes (the "Utility Authority Law"). The Utility Authority Law authorizes two or more counties, cities or special districts in Florida to create a utility authority by interlocal agreement for the purpose of acquiring, owning, managing and operating water and wastewater systems anywhere in Florida. The Utility Authority Law requires any utility authority created pursuant to its terms to notify and obtain consent from the governing body of any county, city or special district (the "Host Government") before the utility authority may acquire a utility system which is located within the boundaries of the Host Government. By Resolution 99-169/Resolution CWS-99-1 issued March 9, 1999, the County, as the Host Government for the Golden Gate System, approved an interlocal agreement with the FGUA authorizing the FGUA to acquire the Golden Gate System (the "FGUA Interlocal Agreement"). Section 1 of the FGUA Interlocal Agreement reserves to the County the right to acquire all, but not less than all, of the Golden Gate System from the FGUA, specifically providing as follows: "The terms and provisions of such acquisition shall be established pursuant to a utility acquisition agreement between the Authority and the District, subject to the terms and conditions of the Interlocal Agreement and the Indenture. Notwithstanding the foregoing and unless otherwise agreed to by the Authority and the District, the purchase price for the Golden Gate Utility System shall be the amount required to repay the Bonds and any additional obligations of the Authority related with the Golden Gate Utility System. The District further agrees to negotiate with the Authority for the payment of a pro-rata share of any reasonable, verified Authority expenses at the time of acquisition by the District. The District shall also pay all verifiable expenses associated with the transfer of the Golden Gate Utility System by the Authority to the District." SECTION 3. STAFF RECOMMENDATION FOR COUNTY TO INITIATE PROCESS TO TRANSFER GOLDEN GATE SYSTEM TO THE COLLIER COUNTY WATER-SEWER DISTRICT. The preliminary financial and technical due diligence conducted by County staff indicate that it may be in the public interest for the County to exercise its rights under the FGUA Interlocal Agreement to acquire the Golden Gate System from the FGUA. Preliminary analyses indicate that the District's service area surrounds the Golden Gate System, application of District rates to current customers of the Golden Gate System would result in a decrease of monthly water and wastewater bills of nearly $40 a month, and there would be no material adverse impact on current customers of the District from the acquisition of the Golden Gate System. For these reasons and based upon the information provided in the preliminary financial and technical reports from the County's consultants, County staff recommends that the Board authorize staff by this Resolution to initiate the process for final due diligence and negotiation of the terms of transfer of the Golden Gate System from the FGUA, notify the FGUA board of the County's desire to initiate such process, and request that the FGUA provide County staff such documents and access to the Golden Gate System as will facilitate the final stages of due diligence and place its management and contractors on notice of the County's intent to initiate the transfer process. SECTION 4. NO DETERMINATION OF PUBLIC INTEREST FOR TRANSFER. This Resolution does not constitute a determination of public interest in the transfer of the Golden Gate System to the District. Florida law requires that after the conclusion of final due diligence by County staff, if the County determines that transfer of the Golden Gate System from the FGUA to the District has merit, public notice and a public hearing must be held for the County to consider certain factors identified in section 125.3401, Florida Statutes. After considering the required factors at such hearing, should the Board determine that acquisition of the Golden Gate System is in the public interest, an acquisition agreement would then be executed by the County and FGUA providing the terms of such transfer and transfer date. SECTION 5. APPROVAL OF NOTICE TO THE FGUA AND INITIATION OF FINAL DUE DILIGENCE ACTIVITIES AS EX OFFICIO GOVERNING BOARD OF THE COLLIER COUNTY WATER AND WASTEWATER DISTRICT. County staff is hereby authorized to take such steps as are necessary to notify the FGUA board of the contents of this Resolution, conclude final due diligence activities and negotiate terms relating to the potential acquisition of the Golden Gate System by the District, and request that notice be given to all current contractors and suppliers of the initiation of the acquisition process so that any FGUA contract or service termination obligations can be initiated. SECTION 6. APPLICABILITY AND EFFECTIVE DATE. This Resolution shall be liberally construed to affect the purposes hereof and shall take effect immediately upon its adoption. 2 Ca ' PASSED AND DULY ADOPTED at the meeting of the Board of County Commissioners of Collier County, Florida, acting as the Ex-Officio Board of the Collier County Water-Sewer District on the2 144'xlay of June, 2017. BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA;AS THE GOVERNING BODY OF COLLIER COUNTY AND EX-OFFICIO BOARD OF THE COLLIER ' COUNTY W T EWER DISTRICT Q_#_zet....- „;.• JaPri Penny Taylor airman AnESY: flwIe�ir E.BR ��Rk P ,.,rt as to Cfitatrnaap's zfnrts1re mkt,. 3 11 ATTEST: DWIGHT E. BR , erk BY: Deputy Clerk ppro -d as to F an Legality: i cott R.Teach Deputy County Attorney (01- 0