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Agenda 11/14/2017 Item # 9B11/14/2017 EXECUTIVE SUMMARY Recommendation to approve a Resolution declaring the acquisition of the assets of the Florida Governmental Utility Authority serving the Golden Gate community in Collier County, Florida, by the Collier County Water-Sewer District, and implementation of county rates is in the public interest; to establish rates and charges; to modify the service area of the Collier County Water - Sewer District and authorize the Chair to execute a Utility System Transition Agreement. OBJECTIVE: To hold a public hearing, pursuant to Florida Statute 124.3041, to enable the Board of County Commissioners, as Ex-officio the Government Board of the Water-Sewer District, to determine that the acquisition of the utility serving Golden Gate City from the Florida Governmental Utility Authority (FGUA) and the implementation of Collier County Water -Sewer District (CCWSD) rates and charges is in the public interest. The Staff Report (Attachment 1) finds the acquisition to be in the public interest. CONSIDERATIONS: At the June 27, 2017 Board of County Commissioners (Board) meeting, item 11D, staff was authorized to initiate the final due diligence process to acquire the utility serving Golden Gate City from FGUA. One of the steps in that process is to hold a public hearing, in accordance with Florida Statutes, to determine if the acquisition, and the implementation of CCWSD rates and charges, is in the public interest. On June 27, staff cited three areas of concern that will be addressed with the acquisition: 1. Public Health - with the expansion of the potable water distribution system to the residents in Golden Gate City, potable water wells can be eliminated, thus reducing the health threat of septic systems in close proximity to drinking water wells. 2. Public Safety - installation of fire hydrants on the expanded water distribution system will provide added fire protection throughout Golden Gate City 3. Environmental Health - to be addressed in the longer term to provide wastewater service to properties abutting the canal systems. The Resolution (Attachment 2) Exhibit A addresses the criteria mandated for consideration by the Board with respect to the acquisition as detailed in the report prepared by the Public Resources Management Group (PRMG). The report concludes that the acquisition is in the public interest. The Utility System Transition Agreement (Attachment 3) establishes the terms, conditions and process for transitioning the ownership of the Golden Gate System from the FGUA to the CCWSD in an expeditious manner. Staff plans to continue to operate the wastewater plant as a sub-regional plant, which will require staffing this Class B treatment facility with six (6) FTE’s. However, due to the proximity of the South County Regional Water Treatment Plant, staff intends to interconnect the Golden Gate City potable water system with the CCWSD potable water system on or about the transfer date not operate the existing FGUA water treatment plant. Plans to construct the interconnects are already underway. To operate and maintain the acquired infrastructure, which includes 47 miles of water mains, 291 hydrants, 328 control valves, 55 miles of sewer mains, 28 lift stations and 437 manholes, staff recommends eight (8) FTE’s which includes 3 field crews of two each, one (1) Crew Leader and one (1) Instrumentation/Electrical Technician. Currently, the FGUA employees 11 dedicated staff and eight (8) shared staff through contractual arrangements. The current FGUA utility service area will be absorbed into and thereby expand the Collier County Water-Sewer District’s water and sewer service area upon the acquisition date. 11/14/2017 FINANCE COMMITTEE RECOMMENDATION: The Finance Committee met on October 3, 2017 and recommended that the Series 2010, Series 2012 and Series 2015 Senior Lien Bonds of the Golden Gate System in the cumulative amount of $34,960,000 be refinanced and restructured to achieve the greatest net present value (NPV) savings to the water/sewer district as opposed to simply assuming the debt. This NPV savings based upon a planning interest rate of 2.3% would realize NPV interest savings of $3,397,000 over the life of the restructured issue. The specific level of savings will not be known until receipt of the bids. In addition, committee members recommended taking cash from the utility transfer and pay off one Sun Trust loan totaling $2,265,100 and two State Revolving Fund (SRF) loans in the amount of $1,433,653. FISCAL IMPACT: The estimated cost of the legal advertisement for this public hearing is $1,890. Funds are available in the Collier County Water-Sewer District Operating Fund (408). An estimate of the financial impact to the existing CCWSD FY18 budget for the period March 1 to September 30, 2018 is anticipated to be revenue centric and is summarized in the following table. A budget amendment is required. The Capital Improvement Plan (CIP) includes the estimated expenditures identified in the Technical Feasibility Report for the collection and distribution system rehabilitation, the generator capacity evaluation study and minor upgrades to the wastewater treatment plant. Subsequent years CIP will include, but are not limited to, AC pipe replacements as necessary and future expansion of the potable water system, including fire hydrants. ($000's)Annual Estimate FY18 Est Impact Revenue Water $3,329.5 $2,085.7 Wastewater $2,512.3 $1,649.5 Miscellaneous $233.6 $136.2 Total Revenue $6,075.4 $3,871.5 FY18 CCWSD Revenue Budget $163,906.1 Amended FY18 CCWSD Budget $167,777.6 Operating Expense Salaries & Benefits $965.4 $563.1 Operating $1,408.3 $915.0 Permit Renewals $247.6 $247.6 Bad Debt Write-Off $152.6 $152.6 Capital Outlay (Year 1)$262.1 $262.1 Total Operating Expense $3,036.1 $2,140.5 Transfers To Debt Service $2,298.9 $1,341.0 To CIP (Year 1)$290.0 $390.0 Total Transfers $2,588.9 $1,731.0 Total Operating Budget $3,871.5 FY18 CCWSD Budget $163,906.1 Revised CCWSD Budget $167,777.6 11/14/2017 LEGAL CONSIDERATIONS: This item is approved as to form and legality, and requires majority vote for Board approval. -SRT GROWTH MANAGEMENT IMPACT: This project meets current Growth Management Plan standards to ensure the adequacy and availability of viable public facilities. RECOMMENDATION: That the Board of County Commissioners, Ex-officio the Governing Board of the Collier County Water-Sewer District, (1) finds the acquisition of the FGUA utility serving the Golden Gate community is the public interest; (2) approves implementation of current county rates and charges; (3) approves staffing the acquired utility with 14 FTE’s; (4) approves the necessary budget amendments; (5) approves expanding the CCWSD service area to include the FGUA utility service area; an d, (6) authorize the Chair to execute a Resolution and Utility System Transition Agreement for the acquisition. Prepared by: Joe Bellone, Director, Financial Operation Support Division ATTACHMENT(S) 1. Legal Ad - Agenda ID 3557 (PDF) 2. Attachment 1 - Staff Report (PDF) 3. Attachment 2 - Resolution 2017 (Stamped by CAO) (PDF) 4. [Linked] Attachment 3 - Transition Agreement (Stamped by CAO) (PDF) 5. Attachment 4 - PFM's Plan of Finance Memo (PDF) 6. [Linked] Attachment 5 - FY2016 FGUA Consolidated Annual Financial Report (CAFR) (PDF) 7. [Linked] Appendix K - Transition Agreement_Vocisano Letter (PDF) 8. [Linked] PRMG CCWSD Briefing Doc 125 Public Interest Hearing 11_07_2017 (PDF) 11/14/2017 COLLIER COUNTY Board of County Commissioners Item Number: 9.B Doc ID: 3557 Item Summary: Recommendation to approve a Resolution declaring the acquisition of the assets of the Florida Governmental Utility Authority serving the Golden Gate community in Collier County, Florida, by the Collier County Water-Sewer District, and implementation of county rates is in the public interest; to establish rates and charges; and to modify the service area of the Collier County Water -Sewer District. Meeting Date: 11/14/2017 Prepared by: Title: – Public Utilities Department Name: Heather Bustos 08/02/2017 1:31 PM Submitted by: Title: Department Head - Public Utilities – Public Utilities Department Name: George Yilmaz 08/02/2017 1:31 PM Approved By: Review: Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 11/07/2017 7:43 AM Public Utilities Department Heather Bustos Level 1 Division Reviewer Completed 11/07/2017 8:31 AM Water Beth Johnssen Additional Reviewer Completed 11/07/2017 8:38 AM Public Utilities Planning and Project Management Tom Chmelik Additional Reviewer Completed 11/07/2017 9:04 AM Wastewater Steve Messner Additional Reviewer Completed 11/07/2017 9:13 AM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 11/07/2017 11:16 AM County Attorney's Office Scott Teach Level 2 Attorney Review Completed 11/07/2017 12:01 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 11/07/2017 1:12 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 11/07/2017 4:14 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 11/08/2017 11:36 AM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 11/08/2017 12:14 PM Board of County Commissioners MaryJo Brock Meeting Pending 11/14/2017 9:00 AM NAPLESNEWS.COM I WEDNESDAY, NOVEMBER 1, 2017 1 19A� NOTICE OF PUBLIC HEARING TO DETERMINE WHETHER THE ACQUISITION OF THE ASSETS OF THE FLORIDA GOVERNMENTAL UTILITY AUTHORITY SERVING THE GOLDEN GATE COMMUNITY LOCATED IN COLLIER COUNTY, FLORIDA, BY THE COLLIER COUNTY WATER -SEWER DISTRICT, AND IMPLEMENTATION OF COUNTY RATES IS IN THE PUBLIC INTEREST; TO ESTABLISH RATES AND CHARGES AND MODIFY THE SERVICE AREA OF THE COLLIER COUNTY WATER -SEWER DISTRICT. The Board of County Commissioners of Collier County, Florida, as the governing body of Collier County and Ex -Officio the governing board of the Collier County Water -Sewer District and the Collier County Water and Sewer Regulatory Authority announces a public hearing to which all interested persons are invited. Such public hearing will be held to determine whether the acquisition by the Collier County Water -Sewer District of the water and wastewater assets currently owned by the Florida Governmental Utility Authority serving the Golden Gate Community ("Golden Gate System") located in Collier County, Florida, and the implementation of County water and wastewater rates and charges is in the public interest. The Board also will consider modification of the service j area of the District to include the area known as Golden Gate currently served by the Florida Governmental Utility Authority. The public hearing will be on November 14, 2017 at the Board of County Commissioners Chambers at the Collier County Government Center, 3299 Tamiami Trail East, 3rd Floor, Naples, Florida 34112. The meeting will commence at 9:00 A.M. The rates and charges which will be effective for services provided on the date the County acquires ownership of the Golden Gate System are as follows Water Service Effective Date Residential, Multi -family and Commercial 10/1/2017 Monthly Base Charge FGUA CCWSD 5/8" $27.48 $21.80 3/4" 41.23 21.80 1 " 68.72 48.13 1-1/4 60.95 1-1/211 137.41 91.76 2" 219.87 144.04 3" 439.76 266.26 4" 687.13 440.78 6" 1,374.26 877.07 8" 21198.81 11400.60 10" 2,534.90 12" 3,423.75 Water Service Effective Date Residential 10/1/2017 Volume Charge (per 1,000 gall, o * FGUA CCWSD 3/4" Block 1: 0 - 61000 $6.21 3/4" Block 2: 79000 - 102000 6.82 3/4" Block 3: 119000 - 209000 7.76 3/4" Block 4: 21,000 and above 9.69 3/4" Block 1: 0 - 5,000 $2.99 3/4" Block 2: 69000 - 101000 4.51 3/4" Block 3:11,000 - 20,000 5.99 3/4" Block 4: 21,000 - 30,000 7.48 3/4" Block 5: 319000 - 50,000 8.97 3/4" Block 6: 51,000 and above 11.96 Water Service Effective Date Multi -Family and Commercial 10/1/2017 Volume Charge (per 1.000 gallons FGUA CCWSD All consumption $6.49 per residential Wastewater Service Effective Date Residential, Multi -family and Commercial 10/1/2017 Monthly Base Charge FGUA CCWSD 5/8" $35.85 $33.31 3/4" 53.77 33.31 1 " 89.61 75.74 „ 1-1/4 'Fy'FY S'�.L t� Q� �{.. y 2 y 3' �4/ ��a fG. :tri 4 ,� 97.10 n'GJ::i:::1^.S.7LYO0.`�.y.41�ii:{YnWyCi0.0[ 1-1/2" 179.21 146.55 2" 286.73 231.57 3" 537.63 429.82 4" 896.07 712.76 6" 19792.12 10420.43 8" 2,867.40 2,269.92 10„ SN;, N�,y R",�} 40069.67 �'b'$ { rKl �t. Y � 9 12"61031.93 'rf ryY a S r Wastewater Service Effective Date Residential 10/1/2017 Volume Charge (per 1.000 gallons) FGUA CCWSD 3/4" Block 1: 0 - 6,000$716 i. Ig 3/4" Block 1: 0 - 15,000$4.69 .k ggt ,..vYwr.a.co`'wc4fE, ;,',.-.:w t .,..:•.,,:; :;: t<,.:. -i -:>'.-x.:0.4•: ,;: Wastewater Service Effective Date Multi -Family and Commercial 10/1/2017 Volume Charge (per 1,000 gallons� FGUA CCWSD All consumption $8.59 $4.69 All remaining rates and charges authorized by Collier County Ordinance No. 2001-73 and Resolution Number 2017-168, as amended, also shall be applied by the Collie_ r County Water -Sewer District upon assuming ownership of the Golden Gate System from the Florida Governmental Utility Authority. All residents of the County including customers of the Florida Governmental Utility Authority and the Collier County Water -Sewer District, affected property owners, tenants or occupants, and all other interested persons, shall have an, opportunity to be heard. All such persons shall also be entitled to file written comments with the County. If a person decides to appeal any decision made by the County with respect to any matter considered at the hearing, such person will need a record of the proceedings and may need to ensure that a verbatim record is made, including the testimony and evidence upon which the appeal is to be made. In accordance with the Americans with Disabilities Act, persons needing special accommodations or an interpreter to participate in this proceeding should contact the Collier County Facilities Management Division located at 3335 East Tamiami Trail, Suite 1, Naples, Florida 34112-5356 at least three business days prior to the date of the meeting. If you have any questions, please contact the Facilities Management Division Director at (239) 252-8380. BOARD OF COUNTY COMMISSIONERS AS THE EX -OFFICIO GOVERNING BOARD OF COLLIER COUNTY WATER -SEWER DISTRICT COLLIER COUNTY, FLORIDA PENNY TAYLOR, CHAIRMAN DWIGHT E. BROCK, CLERK By: Teresa Cannon Deputy Clerk (SEAL) November 1, 2017 ND -1803297 1 STAFF REPORT PURSUANT TO SECTION 125.3401, FLORIDA STATUTES TO: Board of County Commissioners Collier County, Florida FROM: Dr. George Yilmaz DATE: October 26, 2017 RE: Public Hearing and Resolution Considering the Acquisition of the Water and Wastewater Utility Assets of the Florida Governmental Utility Authority Golden Gate System and Establishing Rates RECOMMENDATION: Staff of the Collier County Water-Sewer District ("CCWSD") of Collier County, Florida ("County") hereby presents the Board of County Commissioners (“Board”) with this report addressing a proposed Utility System Transition Agreement ("Transition Agreement") with the Florida Governmental Utility Authority ("FGUA"). The Transition Agreement contains the proposed terms of the conveyance to CCWSD of the water and wastewater utility facilities comprising the Golden Gate System currently owned by FGUA (the “Golden Gate System”). If the Board desires to proceed with this transaction under the presented terms, the Board must adopt Resolution No. 2017-___ which (a) approves the terms of the Transition Agreement and related transfer documents being presented with this Report (collectively, the Transition Agreement and transfer documents will hereafter be referred to as the “Transfer Documents”), (b) directs and authorizes the transition into CCWSD of the real and personal property described in the Transition Agreement comprising the Golden Gate System, (c) establishes the new water and wastewater rates and charges as the same rates and charges applied by CCWSD to its existing customers, (d) modifies the existing CCWSD service area to include the Golden Gate System service area and (e) terminates any pre- existing authorization from the Collier County Water-Sewer Regulatory Authority to FGUA to own and operate the Golden Gate System. BRIEF HISTORY OF FGUA GOLDEN GATE SYSTEM AND COUNTY TRANSITION EFFORTS Collier County has been contemplating the transition of the FGUA System into the CCSWD since 1999 when the owner of the water and wastewater utility then serving the Golden Gate area decided to sell all of the water and wastewater systems it owned, which at that time included the Golden Gate System, to the Florida Governmental Utility Authority. Pursuant to the Florida law applicable to government utility authorities, the FGUA notified Collier County of the potential to purchase the Golden Gate System. The FGUA sought the County’s consent to such a purchase. By resolution 199-09 (the “Consent Resolution”), the Board of County Commissioners approved an interlocal agreement with the FGUA (the “Interlocal 2 Agreement”) which consented to the FGUA’s purchase but also retained to the County the right to purchase the Golden Gate System. The Interlocal Agreement further established that in the event the County elected to assume ownership of the Golden Gate System from the FGUA, the purchase price would be an amount equal to the then-outstanding balance of the debt incurred by FGUA to acquire and improve the Golden Gate System together with the assumption by the County of any other FGUA obligations related to such System which may exist at the time of the County’s election to purchase. Copies of the Consent Resolution and Interlocal Agreement are provided in Appendix A to this Report. Since the Interlocal Agreement was signed, the FGUA closed on the purchase of the Golden Gate System and has operated, maintained and improved the System since 1999. The current financial status and other information pertinent to the Board’s decision whether to pursue the transition of the Golden Gate System into CCWSD at this time is provided later in this Report and in the appendices hereto. On November 3, 2015, CCWSD presented, and the Board approved, the County’s “Sustainable Integrated Water Resource Management Plan.” Transition of the FGUA’s Golden Gate System into CCWSD is another important step, in addition to the recent Orange Tree Utility System integration, toward fulfillment of such plan. As the Board reiterated recently when authorizing the integration of the Orange Tree Utility System into CCWSD, ever since the County began purchasing private water and wastewater utilities, the County has recognized that the proliferation of small water and wastewater systems may not be conducive to the most cost effective and efficient provision of water and wastewater service. Where efficient and effective service is not available, the utility owner, customers, and the environment may suffer. Recognizing the benefits and efficiencies of economies of scale as a utility system grows as well as other benefits from CCWSD ownership of utility systems in the County, on June 27, 2017, the Board adopted Resolution 2017- 123 authorizing County staff to work toward the potential transition of the FGUA System into CCWSD pursuant to the terms of the Interlocal Agreement. CCWSD has proceeded to conduct the negotiation and due diligence processes relating to the Golden Gate System in a manner consistent with applicable County ordinances and the Interlocal Agreement since that time. CCWSD retained financial, legal and engineering experts skilled in the utility acquisition process to assist the County in the transition process. Public Resources Management Group (“PRMG”), the CCWSD financial experts, and the engineering firm, Stantec Consulting Services, Inc., have presented CCWSD with several reports regarding the Golden Gate System (the “PRMG Report” and “Stantec Report”, respectively). PRMG and Stantec support County Staff’s recommendation that the Golden Gate System be transitioned into CCWSD at this time. In addition, CCWSD, by and through Stantec, has evaluated the Golden Gate System’s compliance with local, state and federal laws, rules and permits, including environmental impact analyses as deemed appropriate, and confirmed that the Golden Gate water and wastewater systems are currently in substantial compliance and capable of CCWSD operation on a cost-effective basis. Follow up investigations subsequent to Hurricane Irma revealed that the Golden Gate System had not been materially adversely affected from the hurricanes and thus Staff’s recommendation to proceed with the transition has not been altered. The Transfer Documents provide the terms of the conveyance of the FGUA System to the County in the manner and timeframes contemplated in such documents. Requirements of Florida Law Public Hearing Requirement Pursuant to Chapter 125, Florida Statutes, the County has the power to acquire, operate, construct, own, and manage water and/or wastewater utility facilities. In accordance with these and similar powers, 3 County Staff has negotiated the terms of the proposed Transition Agreement and Transfer Documents which provide for the transition of the Golden Gate System into CCWSD in a manner consistent with the Interlocal Agreement and applicable County ordinances. To provide for the public interest and welfare, section 125.3401, Florida Statutes requires the Board to address and balance numerous factors, listed below, when considering the proposed transition of the Golden Gate System into CCWSD. The CCWSD acquisition team has spent many hours in the investigation of this potential transition, conducting due diligence and negotiating terms with the FGUA to ensure the seamless transition of the FGUA’s Golden Gate System and customers into CCWSD. The following information, together with, and summarizing, the more detailed financial and engineering information presented by PRMG and Stantec is provided for the Board’s consideration in determining if the recommended action is in the public interest: (1) The most recent available income and expense statement for the utility. This information is provided in pertinent portions of the most recent Comprehensive Annual Financial Report of the FGUA relating to the Golden Gate System (the "CAFR") for the period ending December 31, 2016. Copies of pertinent pages of the CAFR are attached in the PRMG Report as Table 2-1. (2) The most recent available balance sheet for the utility, listing assets and liabilities and clearly showing the amount of contributions-in-aid-of-construction and the accumulated depreciation thereon. This information is included in the Financial Section of the CAFR referred to above, copies of pertinent pages are provided in Table 3-1 of the PRMG Report. (3) A statement of the existing rate base of the utility for regulatory purposes. As a governmental authority, the FGUA does not maintain “rate base” information. Rate base is a ratemaking financial concept which applies only to private or “investor-owned” utilities. Rate base considers such concepts as “used and useful” plant in service which do not apply to utility systems owned and operated by government-owned utilities such as CCWSD and FGUA. The FGUA Golden Gate System thus does not have a recorded “rate base” and has not recorded rate base information since the System was last owned by a private owner in 1999 prior to purchase by the FGUA. (4) The physical condition of the utility facilities being purchased, sold or subject to a wastewater facility privatization contract. Stantec conducted a regulatory compliance review of the FGUA System operations, which CCWSD has reviewed and continues to follow up on. According to the Stantec Report, the Golden Gate wastewater system is “in good condition and limited improvements are needed to maintain wastewater service to existing customers.” The Golden Gate water system is experiencing problems with unaccounted for water and low water treatment recovery rates from the existing treatment process which, absent a CCWSD acquisition or interconnect with the CCWSD water system, would require significant capital expenditures by FGUA to improve water quality and assist the System to operate more effectively. As reported below in this Staff recommendation and report, CCWSD and its engineers recommend that an interconnect of the Golden Gate System with the CCWSD water system be completed as soon as possible after the Transfer Date to remedy these issues. The Transition Agreement 4 provides for this expeditious completion of the required interconnect so water quality and water system operation, generally, should improve soon after CCWSD takes ownership of the Golden Gate System. Representatives of CCWSD and its experts also periodically have performed on-site visits to inspect the FGUA Golden Gate System. CCWSD will need to incorporate the FGUA Golden Gate System into its geographical information system ("G.I.S.") should the Board approved the proposed transition. The Transition Agreement, if approved, provides CCWSD and its representatives continued access to the FGUA System prior to the date title to the FGUA System is to be transferred to CCWSD. CCWSD shall utilize the period between the Board's approval of the Transition Agreement and the day that ownership of the Golden Gate System is transferred to CCWSD (the "Transfer Date") to continue to analyze and monitor system operations and familiarize CCWSD personnel with specific operations protocols to insure smooth transition of System operations to CCWSD. The Transition Agreement further provides the County the ability to continue utilization of FGUA contracts or contractors subsequent to the Transfer Date should the County so desire. Finally, CCWSD has secured from FGUA in the Transition Agreement representations confirming substantial compliance of the Golden Gate System with applicable local, state and federal laws, rules and permits and identifying a single real property related issue which CCWSD is addressing. (5) The reasonableness of the contract price and terms. The proposed conveyance of the Golden Gate System and transition of the Golden Gate System into CCWSD is to be completed pursuant to the terms of the Transition Agreement and Transfer Documents, and applicable County ordinances, with the purchase price payable by the County equal to the outstanding debt and other obligations of FGUA related solely to the Golden Gate System. The FGUA has acquired other utility systems located in a number of other Florida counties, some of which systems previously have been transitioned into ownership by the county or city in which such systems were located. The proposed transition of the Golden Gate System into CCWSD would occur in a manner and upon such terms which are similar to the transitions of FGUA systems to other local governments in the past. In addition, the terms of the Transition Agreement reflect and incorporate the guidance, rights and obligations provided to CCWSD and the County through the Interlocal Agreement and County ordinances. Pursuant to the Interlocal Agreement, CCWSD will assume ownership of all assets and associated rights of the Golden Gate System used to provide service in the existing FGUA Golden Gate service area. Deeds, easements, a bill of sale and FGUA records and documents pertaining to the Golden Gate System will be provided by FGUA to the County to enable CCWSD to provide service to current customers as well as future customer growth. Liabilities: The FGUA will convey to the County all rights and ownership associated with the Golden Gate System, including all cash (both restricted and unrestricted), rights to revenue, and title to all property. The FGUA bonds do not permit any FGUA system to be responsible for the liabilities of any other FGUA system. Thus, upon conveyance of the Golden Gate System to CCWSD, CCWSD shall be responsible for satisfying any liabilities associated with the Golden Gate System arising out of any occurrence or event which occurred prior to, as well as subsequent to, the Transfer Date. Since CCWSD will assume the risks 5 related to past FGUA non-compliance with applicable laws, permits and rules, CCWSD would be assuming a risk not ordinarily assumed in a utility system transfer situation. Therefore, CCWSD has conducted thorough due diligence of the Golden Gate System, including consultation with regulatory authorities, to best be able to assess the potential scope of such a risk. CCWSD and its experts have determined that risks associated with CCWSD’s assumption of pre-Transfer Date liabilities should not materially adversely affect CCWSD’s ability to operate the Golden Gate System after the Transfer Date so as to comply with the financial, operating and engineering projections of CCWSD’s experts, as identified in the PRMG Report. Transfer Date: March 1, 2017 Title Insurance: FGUA shall provide the County with deeds to the four (4) parcels of property owned by FGUA in fee title, including the parcel upon which the primary water and wastewater facilities, including the water and wastewater treatment plants (the “Treatment Plants Parcel”) are located. Existing easements in favor of FGUA shall be assigned to CCWSD and the Transition Agreement provides that new deeds and easements shall be granted to CCWSD by FGUA as may be required by CCWSD so that CCWSD possesses rights of use and access to all assets used by FGUA to operate the Golden Gate System being integrated into CCWSD. CCWSD will identify property and easements for which title insurance will be secured as well as the amount of title insurance required. The FGUA will possess no rights to such property or easements subsequent to the Transfer Date. To date, CCWSD due diligence and FGUA disclosures have identified one known potential encumbrance or liability related to real and personal property to be conveyed to CCWSD under the Transition Agreement. This issue relates to an access easement to Golden Gate System water facilities and related facilities (antanaeantennae). CCWSD staff and experts are addressing the issues with the expectation that resolution may be achieved prior to the Transfer Date. At the present time, the issues identified would not appear to be materially adverse to CCWSD operation of the Golden Gate System in the manner currently contemplated by CCWSD. Litigation and Regulatory Matters: FGUA represents to the County that there is no pending litigation or material regulatory matter relating to the Golden Gate System and that FGUA has no knowledge of facts which would suggest litigation or a regulatory matter of an enforcement nature may arise based upon any known act or omission of the FGUA or its contractors. As explained previously in this Report, due to the unique structure of the FGUA, should a regulatory matter arise subsequent to the Transfer Date, CCWSD would be liable for rectifying such matter regardless of whether the act or omission giving rise to such matter occurred prior to the Transfer Date. (6) The impacts of the purchase and sale on utility customers, both positive and negative. It is expected that the impact and consequences of acquiring the Golden Gate System from the FGUA on both ratepayers and landowners will be positive in nature. The area served by the Golden Gate System is surrounded by CCWSD’s service area and facilities. To improve the quality of water and wastewater service from the level of service currently being provided by FGUA and generally to comport with the mission of CCWSD to provide safe, sufficient and economical water and wastewater utility service, the following is proposed by CCWSD: 6 (a) Acceptance of conveyance of the FGUA System by the County pursuant to the terms of the Transfer Documents presented to the Board; (b) Upon the Transfer Date, CCWSD shall charge former FGUA customers the same rates, fees and charges currently authorized by the Board to be charged to customers of CCWSD. The County’s monthly water and wastewater rates represent approximately a 25% decrease in the monthly bill for former FGUA customers using an average of 6,000 gallons of water per monthly billing period. (c) CCWSD has initiated steps to interconnect the existing water system serving the Golden Gate community to CCWSD’s water system soon after the Transfer Date. Water quality is anticipated to improve, and capital expenditures previously anticipated to be made by the FGUA to expand its water treatment facilities and improve the quality of water it was serving will be prevented. (d) Upon the Transfer Date, CCWSD will possess the financial ability to provide water and wastewater services to not only the areas currently served by FGUA, but potentially areas within the Golden Gate service area which are not yet receiving central water and wastewater service from the FGUA. (e) After the transition of the FGUA System into CCWSD, CCWSD will continue to possess more than sufficient financial ability to meet all identified capital needs, renewal and replacement, operations, management and adequate contingencies for operating the Golden Gate System. (7) Any additional investment required and the ability and willingness of CCWSD to make that investment. The transition of the FGUA System into CCWSD represents yet another significant step forward in fulfilling the County’s Sustainable Integrated Water Resource Management Plan. The Golden Gate System currently serves approximately 3,640 water and 2,300 wastewater connections. CCWSD, together with Stantec, have conducted extensive engineering and operations due diligence. The transition of the FGUA System into CCWSD will advance CCWSD’s ability to provide service in the Northeast service area. CCWSD will be able to serve the Northeast service area through existing and to be constructed facilities, as well as provide interconnections between the Golden Gate System and existing CCWSD in- ground infrastructure. The Transition Agreement identifies capital projects which will be completed prior to the Transfer Date by FGUA, as well as those projects which may be initiated by FGUA prior to the Transfer Date but which would remain in process as of such date. CCWSD shall assume responsibility to complete any FGUA Transition Projects not completed as of the Transfer Date. Any warranties associated with completed projects or projects in process on the Transfer Date shall be conveyed to CCWSD by FGUA. Also, CCWSD has identified certain capital projects and improvements which CCWSD shall initiate if the Board approves the Transition Agreement which CCWSD anticipates will allow CCWSD to improve service in the Golden Gate community as of the Transfer Date. Perhaps most significantly, CCWSD and FGUA shall initiate construction of facilities necessary to interconnect the Golden Gate System water facilities to CCWSD’s water system in three locations (approximate cost $1.5 million) on or shortly after the Transfer Date. It is anticipated that completion of the interconnects upon CCWSD taking ownership of the Golden Gate System will improve water quality, resolve current quality issues currently being experienced by FGUA (i.e., lead and copper), reduce water system operating costs and eliminate the need to invest larger sums which FGUA had been contemplating making in other capital projects to address the water issues. 7 (8) The alternatives to the purchase and the potential impact on utility customers if the purchase is not made. It is in the public interest that long-range planning, management, financing, maintenance, upkeep, and operations of water and wastewater utilities be coordinated by the County through the CCWSD. The transition of the Golden Gate System into CCWSD is another step toward achieving this goal. This transition initiative meets current growth management plan standards to ensure the adequacy and availability of viable public facilities, including goals established in the most recent Sustainable Integrated Water Resource Management Plan. CCWSD is unable to identify any negative consequence on current customers of the Golden Gate System from the proposed transition. Customer rates will immediately decrease upon the Transfer Date. Future rate increases will be lower than customers otherwise would have experienced under continued FGUA ownership as CCWSD offers significant economies of scale, lower financing costs (tax exempt debt at better rating), and the ability to manage costs and investments for the long term. Under FGUA ownership, the utility has been managed for the shorter term as the FGUA knew of CCWSD’s option to assume responsibility for serving the Golden Gate service area and acquiring the Golden Gate System. Water quality and the efficiency of water system operations should improve soon after the Transfer Date upon completion of the interconnection of the Golden Gate System to the CCWSD water system. As the Golden Gate Interlocal Agreement provides the County with the right to acquire the Golden Gate System at any time, another private utility likely would not purchase the Golden Gate System from the FGUA since such owner would be bound by the terms of the Interlocal Agreement. The sale of the Golden Gate System to a private utility would appear to be foreclosed; and it is doubtful that a private utility could bestow on current customers of the Golden Gate System the many benefits expected to be derived from the CCWSD acquisition. Based on the foregoing, FGUA customers will benefit from the proposed transition of the Golden Gate System into CCWSD. (9) The ability of the County to provide and maintain high-quality and cost-effective utility service. As indicated previously in this Report, transition of the Golden Gate System into CCWSD is an important step toward fulfilling the Sustainable Integrated Water Resource Management Plan approved by the Board on November 3, 2015. CCWSD, PRMG and Stantec have conducted extensive due diligence and analyzed the operations and capital needs and cash flow projected to be experienced by CCWSD upon successful transition of the Golden Gate System into CCWSD. CCWSD will achieve economies of scale and other efficiencies (i.e., from abandoning the current water treatment plants) when the Golden Gate System is operated in conjunction with CCWSD’s existing utility operations. CCWSD’s ability to provide and maintain high-quality and cost-effective utility service for the Golden Gate System is best demonstrated in the AAA ratings currently bestowed by Fitch rating agency upon CCWSD’s existing water and wastewater bonds, a testament to the sound utility policies and practices employed by CCWSD. Also, customers of the Golden Gate System should benefit from CCWSD’s superior bond ratings thus providing access to lower cost public financing than previously available under FGUA ownership. CCWSD’s superior bond ratings should lower capital costs for system expansions, interconnects and other improvements. CCWSD’s decades of experience acquiring, operating, and improving water and wastewater systems is sufficient justification for customers of the Golden Gate System to be confident that they will be well served by CCWSD. 8 Other Material Facts Other material facts concerning the Golden Gate System for the Board’s consideration and approval include (a) approval of the incorporation of the Golden Gate service area into CCWSD’s service area; (b) termination of any authorization to operate the Golden Gate System previously issued to FGUA by the Collier County Water and Sewer Regulatory Authority; and (c) the potential impact of reduced monthly rates to be charged to former FGUA customers after the proposed transition. (a) The special law passed by the Florida Legislature to create the CCWSD (Chapter 2003-353, Laws of Florida, to be referred to in this Report as the "Special Act") excludes from CCWSD’s service area the areas currently served by the FGUA’s Golden Gate System. Upon transition of the Golden Gate System to CCWSD, CCWSD will assume responsibility to provide water and wastewater services to this area. The resolution proposed for Board consideration includes a finding that it is in the public interest for the Golden Gate System to be transitioned from FGUA to CCWSD ownership together with the expansion of CCWSD’s service area to include those areas in the Golden Gate community currently served by the FGUA as well as areas in which the FGUA previously was authorized to provide service but are as yet unserved. (b) Pursuant to the terms of the Golden Gate Interlocal Agreement, and subsequent agreements, the County’s Water and Sewer Regulatory Authority (the “Regulatory Authority”) has possessed certain regulatory authority over FGUA operations in the County since 1999. The resolution presented to the Board provides for the Board, acting as the ex officio board of the Regulatory Authority, to recognize (i) the transition of the Golden Gate System to CCWSD, (ii) the expansion of CCWSD’s service area to include all areas in which the FGUA previously was authorized to provide water and wastewater service, and (iii) the termination of any authorization previously granted to FGUA to provide water and wastewater services in such area. (c) Service Rates Under FGUA versus CCWSD Ownership. FGUA over the years has filed rate increase requests with the Authority to recover its investments in the Golden Gate System and its cost of operating the System. As of this date, the monthly service rates charged by FGUA for water and wastewater service are approximately twenty-five percent (25%) higher than the corresponding rates charged by CCWSD. Upon completion of the recommended transition of the Golden Gate System into CCWSD, CCWSD proposes that the rates charged to customers previously served by FGUA be equal to CCWSD rates in accordance with section seventeen of the Special Act, which prohibits discrimination in the fees, rates and charges for users in the same class which possess the same service characteristics. Charging CCWSD rates initially is likely to reduce the operating income from the Golden Gate System from levels currently being obtained by the FGUA as monthly service revenue will be reduced. The revenue reduction is anticipated to be offset by reductions in certain operating costs currently projected by CCWSD. It also is unknown whether significantly reduced monthly customer bills will encourage customers to use more water which would produce higher revenue than currently projected by the County’s expert. In addition, CCWSD contemplates offering additional service in areas not currently served by FGUA, which service would generate additional revenue and have associated public health, safety and environmental benefits. Considering all pertinent factors, CCWSD believes that the cost and revenue projections presented to the Board by the County’s financial expert, PRMG, as well as the projected investments in capital projects to be made by CCWSD subsequent to the Transfer 9 Date, are reasonable and conservative projections which may be relied upon by the Board when considering the proposed acquisition. Determination of Public Interest Upon consideration of the above factors, it is recommended that the Board of County Commissioners find that the transition of the FGUA System into CCWSD pursuant to the terms of the Transition Agreement and Transfer Documents is in the public interest; that the transfer of the water and wastewater assets of FGUA to CCWSD be approved as of right; that the rates charged by CCWSD to customers served by the Golden Gate System as of the Transfer Date be those rates currently in effect for CCWSD customers in the same customer class; that CCWSD be authorized to continue to operate the Golden Gate System pursuant to the terms of such operations, equipment or other service agreements as CCWSD determines should be assigned to CCWSD as of the Transfer Date; that the CCWSD service area include the service area previously served by FGUA; and that any authorization by the Regulatory Authority previously granted to FGUA to provide water and wastewater service in the Golden Gate community be terminated. RESOLUTION NO. 2017- A RESOLUTION OF THE BOARD OF COUNTY COMISSIONERS OF COLLIER COUNTY, FLORIDA, AS THE GOVERNING BOARD OF COLLIER COUNTY, FLORIDA, AND EX - OFFICIO AS THE GOVERNING BOARD OF THE COLLIER COUNTY WATER -SEWER DISTRICT AND EX -OFFICIO AS THE GOVERNING BOARD OF THE COLLIER COUNTY WATER AND SEWER REGULATORY AUTHORITY DIRECTING AND AUTHORIZING THE ACQUISITION OF THE REAL AND PERSONAL PROPERTY OWNED OR UTILIZED BY THE FLORIDA GOVERNMENTAL UTILITY AUTHORITY TO PROVIDE WATER AND WASTEWATER SERVICES IN COLLIER COUNTY, FLORIDA, IN THE GOLDEN GATE COMMUNITY; PROVIDING FOR FINDINGS OF PUBLIC PURPOSE AND NECESSITY; PROVIDING THAT THE ACQUISITION IS IN THE PUBLIC INTEREST IN CONFORMANCE WITH SECTION 125.3401, FLORIDA STATUTES; PROVIDING AUTHORITY TO COMPLETE THE ACQUISITION; PROVIDING FOR TERMINATION OF AUTHORITY OF THE FLORIDA GOVERNMENTAL UTILITY AUTHORITY TO PROVIDE SERVICE AND INCLUSION OF SERVICE AREA IN THE COLLIER COUNTY WATER - SEWER DISTRICT SERVICE AREA; AND PROVIDING FOR APPLICABLIITY AND AN EFFECTIVE DATE. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AND EX -OFFICIO AS THE GOVERNING BOARD OF THE COLLIER COUNTY WATER -SEWER DISTRICT AND EX -OFFICIO AS THE GOVERNING BOARD OF THE COLLIER COUNTY WATER AND SEWER REGULATORY AUTHORITY as follows: SECTION 1. AUTHORITY. Pursuant to Chapter 125, Florida Statutes, and Chapter 2003-353, Laws of Florida, the Board of County Commissioners (the "Board") of Collier County, Florida, and ex -officio as the governing board of the Collier County Water -Sewer District (collectively, the "County") has all of the powers of local self-government to perform County functions and render services for County purposes. Such power includes the authority to provide water and wastewater utility services and to acquire facilities to provide such services within the County. SECTION 2. FINDINGS. It is hereby ascertained, determined and declared: A. The Florida Governmental Utility Authority (the "FGUA") owns and operates a potable water treatment and distribution system and a wastewater collection, treatment and disposal system within Collier County (collectively, the "Golden Gate System"). The Golden Gate System is operated pursuant to Section 163.01(7), Florida Statutes, and the First Amended and Restated Interlocal Agreement Relating to Establishment of the Florida Governmental Utility Authority dated December 1, 2000, as it may be amended (the "FGUA Interlocal"). 1 Prior to its acquisition by the FGUA in 1999, the Golden Gate System was operated by an investor-owned private water and wastewater utility company owned by Avatar Holdings, Inc. ("Avatar"). B. The FGUA acquired the Golden Gate System from Avatar with consent of the County based upon the terms of an interlocal agreement between the FGUA and the County approved by County Resolution No. 99-169/Resolution CWS -99-1 issued on March 9, 1999 (the "Golden Gate Interlocal Agreement"). Section 1 of the Golden Gate Interlocal Agreement reserves to the County the right to acquire all, but not less than all, of the Golden Gate System from the FGUA. C. Section 1(A) of the Golden Gate Interlocal Agreement further provides as follows: "The terms and provisions of such acquisition shall be established pursuant to a utility acquisition agreement between the [FGUA] and the [County], subject to the terms and conditions of the Interlocal Agreement and the Indenture. Notwithstanding the foregoing and unless otherwise agreed to by the [FGUA] and the [County], the purchase price for the Golden Gate Utility System shall be the amount required to repay the Bonds and any additional obligations of the [FGUA] related with the Golden Gate Utility System. The [County] further agrees to negotiate with the [FGUA] for the payment of a pro -rata share of any reasonable, verified [FGUA] expenses at the time of acquisition by the [County]. The [County] shall also pay all verifiable expenses associated with the transfer of the Golden Gate Utility System by the [FGUA] to the [County]." D. Section 1(B) of the Golden Gate Interlocal Agreement provides as follows: "The [FGUA] hereby also grants the [County] the right to assume the [FGUA's] obligations under the Bonds and the Indenture (or any successor document thereto), all pursuant to the terms and conditions set forth in Article VII of the Indenture. Any such assumption by the [County] shall take place simultaneously with the transfer of the Golden Gate Utility System from the [FGUA] to the [County]." E. To provide for the public interest and welfare, the Board generally is required to address and balance the impacts of growth with the need to provide and plan water production, treatment and distribution facilities and wastewater collection, treatment, disposal and reuse facilities which are necessary to accommodate existing development and anticipated future growth in a manner concurrent with the demand for such facilities. F. Transition of the Golden Gate System to the Collier County Water -Sewer District is consistent with the intergovernmental coordination element of the Collier County Growth Management Plant as such transition represents a cooperative effort between the limited purpose special district, the FGUA, and Collier County in the planning and provision of potable water, reclaimed water and the treatment of wastewater generated by existing and future residents and businesses in the County. Since the Golden Gate Interlocal Agreement was entered by FGUA and the County in 1999, the County has monitored the operation and improvement by FGUA of the Golden Gate System in contemplation of the eventual transition of such System to the Collier County Water -Sewer District. The Golden Gate System currently is surrounded by the Collier County Water -Sewer District's service area. 2 G. Public ownership and control of existing water and wastewater utility systems, including the Golden Gate System, will provide the opportunity for the County to: (1) further develop a regional approach to the comprehensive supply, distribution and treatment of water and the collection, treatment and disposal of wastewater; (2) seek economies of scale resulting from the unified and regional provision of utility services by local government; (3) ensure that current and future users of the Golden Gate System and other County facilities are provided with cost efficient services at reasonable rates by local government; (4) ensure that the operation and maintenance of water and wastewater facilities is done in a proactive and environmentally responsible manner; (5) stabilize rates over the long term, reduce inefficient expansion and extension of service capacities, and avoid the proliferation of smaller treatment facilities and sites; (6) assure the appropriate expansion and interconnection of existing facilities and the construction of future facilities in a coordinated, uniform and non-discriminatory manner; (7) promote the protection and environmentally sensitive utilization of water supplies, surface water and groundwater resources in the County and surrounding areas; and (8) accomplish a greater public use and increased public benefit which will result from the ownership, operation and control of the Golden Gate System by the County. H. The provision of water and wastewater services is a major component of infrastructure coordination. The public ownership and control of the Golden Gate System will enable the County to more effectively and efficiently plan and fulfill the County's responsibilities under Florida Statutes to assure that high quality, cost efficient water and wastewater utility services needed to support new development are available concurrent with the impact of such development. The acquisition of the Golden Gate System is consistent with the County's comprehensive plan. I. Based upon the foregoing, the Board expressly finds that the provision of water and wastewater utility services in the Golden Gate community by the County constitutes a public purpose and is in the best interests of the health, safety and welfare of the County and its inhabitants. Further, the Board expressly finds that the acquisition and integration of the Golden Gate System into the Collier County Water -Sewer District is necessary for the fulfillment of the public purpose of providing a County -owned and operated water and wastewater utility, and will provide a greater public use and increased public benefit than the existing use. SECTION 3. PUBLIC INTEREST DETERMINATION OF PURCHASE. In conformance with section 125.3401, Florida Statutes, and Chapter 2003-353, Laws of Florida, the Board has considered the report presented during the hearing from CCWSD staff and retained financial, engineering and legal experts (attached as Exhibit "A" hereto) addressing the following criteria mandated for consideration by the Board with respect to the acquisition of the Golden Gate System: A. The most recently available income and expense statement of the Golden Gate System; 3 B. The most recently available balance sheet for the Golden Gate System listing the assets and liabilities and showing the amount of contributions -in -aid -of construction and the accumulated depreciation thereon; C. A statement of the existing rate base of the Golden Gate System for regulatory purposes; D. The physical condition of the Golden Gate System; E. The reasonableness of the amount to be paid and the terms of the Transition Agreement; F. The impacts of the contemplated acquisition on utility customers served by the Golden Gate System as well as utility customers served by the County, both positive and negative; G. Any additional investment required and the ability and willingness of the County to make that investment; H. The alternatives to the contemplated acquisition and the potential impact on utility customers if the Golden Gate System is not acquired; I. The ability of the County to provide and maintain high quality and cost-effective utility service; and J. A statement prepared by staff of the Collier County Water -Sewer District, together with reports from financial and engineering experts, showing that: (1) the acquisition of the Golden Gate System is in the public interest, including a summary of the County's experience in utility operation; and (2) the County has the financial ability to provide, now and in the future, high quality and cost-effective utility services to the Golden Gate community. The Staff Report concludes with a recommendation that the Board find the acquisition of the Golden Gate System by the County to be in the public interest based upon an analysis of these criteria. SECTION 4. EXERCISE OF RIGHT TO PURCHASE. The Board hereby exercises its right to acquire the Golden Gate System from the FGUA and states its commitment to cause the Collier County Water -Sewer District (the "District") to issue Bonds and otherwise render to FGUA such payments as are necessary to refund all of FGUA's existing Series 2010 Bonds, Series 2012 Bonds and Series 2015 Bonds. The County currently intends to refund and redeem FGUA's existing SRF Loans and SunTrust Loan with cash but reserves the right to refund/redeem such Loans through the issuance of other debt of the District. SECTION 5. AUTHORITY TO COMPLETE PURCHASE AND SALE. A Transition Agreement by and between the Florida Governmental Utility Authority, Collier County, Florida, and the Collier County Water -Sewer District (the "Transition Agreement") is attached as Exhibit "B" to this Resolution. The Board hereby approves the form thereof and the Board hereby authorizes and directs the Chair, or the Chair's designee, to execute the Transition Agreement on behalf of the Board in substantially the form of the Transition Agreement attached hereto as Exhibit `B" and to deliver executed copies of the Transition Agreement to the FGUA. The Board further authorizes the Chair, the Chair's designee, members of the Board, officers, attorneys and other agents or employees of the County to do all acts and things required of them by this Resolution and the a Transition Agreement, for the full punctual and complete performance of all of the terms, covenants and agreements contained in this Resolution and the Transition Agreement, and each member of the Board, officers, attorneys and other agents or employees of the County is hereby authorized and directed to execute and deliver any and all papers and instruments, asset closing documents, bonds and bond documents, and to do and cause to be done all acts and things necessary or proper for carrying out the transactions contemplated by this Resolution and/or the Transition Agreement. SECTION 6. APPROVAL OF TRANSITION AS EX OFFICIO GOVERNING BOARD OF THE COLLIER COUNTY WATER AND SEWER AUTHORITY. The transition of the assets of the Golden Gate System into the Collier County Water -Sewer District pursuant to the Transition Agreement, having been duly noticed and a hearing held, is hereby found to be in the public interest and approved as of right pursuant to section 134-369(f) of the Code of Laws and Ordinances of Collier County, Florida. Any certificate or agreement previously issued to, or entered with, the FGUA by the Collier County Water and Sewer Authority is terminated effective on the date of the completion of the transition of the Golden Gate System into the Collier County Water -Sewer District and the service area of the FGUA related to the Golden Gate System shall become part of the service area of the Collier County Water -Sewer District on such date. SECTION 7. APPLICABILITY AND EFFECTIVE DATE. This Resolution shall be liberally construed to affect the purposes hereof and shall take effect immediately upon its adoption. 5 PASSED AND DULY ADOPTED at the meeting of the Board of County Commissioners of Collier County, Florida, and acting as the Ex -Officio Board of the Collier County Water -Sewer District and Ex -Officio Board of the Collier County Water and Sewer Regulatory Authority on the 14th day of November, 2017. ATTEST: BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AS THE GOVERNING BODY OF COLLIER COUNTY AND EX -OFFICIO BOARD OF THE COLLIER COUNTY WATER -SEWER DISTRICT AND EX - OFFICIO BOARD OF THE COLLIER COUNTY WATER AND SEWER REGULATORY AUTHORITY By: ,Deputy Clerk Penny Taylor, Chair Approved as to form and legality: Scott R. Teach Deputy County Attorney 6 UTILITY SYSTEM TRANSITION AGREEMENT BY AND BETWEEN THE COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS, AS THE GOVERNING BOARD OF COLLIER COUNTY, FLORIDA, AND EX -OFFICIO AS THE GOVERNING BOARD OF THE COLLIER COUNTY WATER -SEWER DISTRICT G1►11� THE FLORIDA GOVERNMENTAL UTILITY AUTHORITY Date: November 14, 2417 TABLE OF CONTENTS ARTICLE I DEFINITIONS AND CONSTRUCTION SECTION 1.01, DEFINITIONS SECTION 1.02 CONSTRUCTION AND INTERPRETATION SECTION 1.03 SECTION HEADINGS ARTICLE II REPRESENTATIONS SECTION 2.01 REPRESENTATIONS OF THE FGUA SECTION 2.02 REPRESENTATIONS OF THE CC WSD ARTICLE III CONVEYANCE OF THE GOLDEN GATE SYSTEM SECTION 3.01 AGREEMENT TO ACQUIRE SECTION 3.02 TRANSFER, ASSIGNMENT AND ASSUMPTION SECTION 3.03 ACCOUNTS RECEIVABLE; CUSTOMER DEPOSITS SECTION 3.04 STATUS OF TITLE SECTION 3.05 TRANSFER DATE SECTION 3.05 BOND PROCEEDS AND FGUA FUNDS SECTION 3.07 OUTSTANDING REGULATORY COMPLIANCE ISSUES SECTION 3.08 TRANSFER OF PERMITS SECTION 3.09 RISK OF LOSS SECTION 3.10 FGUA DISCLOSURE OF OBLIGATIONS SECTION 3.11 FURTHER ASSURANCES SECTION 3.12 DUE DILIGENCE ACCESS RIGHTS ARTICLE IV TRANSITION PROJECTS SECTION 4.01 FGUA TRANSITION PROJECTS SECTION 4.02 CCWSD TRANSITION PROJECTS SECTION 4.03 ASSUMPTION OF WORK IN PROCESS ARTICLE V GENERAL PROVISIONS SECTION 5.01 INTERLOCAL AGREEMENT PROVISIONS SECTION 5.02 TERM OF AGREEMENT SECTION 5.03 DISPUTE RESOLUTION SECTION 5,04 AMENDMENTS AND WAIVERS SECTION 5.05 NOTICES SECTION 5.06 SEVERABILITY SECTION 5.07 EXECUTION IN COUNTERPARTS SECTION 5.08 APPLICABLE LAW AND VENUE SECTION 5.09 THIRD PARTIES SECTION 5.10 ENTIRE AGREEMENT APPENDIX "A" - CCWSD TRANSITION PROJECTS APPENDIX "B" - FGUA TRANSITION PROJECTS APPENDIX "C" - REAL PROPERTY, EASEMENTS AND INTANGIBLE RIGHTS APPENDIX "D" -- WARRANTIES FOR CONSTRUCTION IN PROCESS APPENDIX "E" - PERMITS APPENDIX "F" - INVENTORY OF EQUIPMENT APPENDIX "G" - ESTIMATED INVENTORY LEVELS - PARTS, CHEMICALS, AND RESIDUALS APPENDIX "H" - OPERATING AND VENDOR CONTRACTS APPENDIX "I" - AGREEMENTS ENCUMBERING THE SYSTEM APPENDIX "J" - INSURANCE POLICIES APPENDIX "K" - REAL PROPERTY CLAIMS OR DISPUTES APPENDIX "L" - REGULATORY COMPLIANCE UTILITY SYSTEM TRANSITION AGREEMENT This Utility System Transition Agreement is made and entered into this day of , 2417, by and between the Collier County Board of County Commissioners, as the governing board of Collier County, Florida, and ex -officio as the governing board of the Collier County Water -Sewer District, a political subdivision of the State of Florida and a body corporate and politic created by special law, as codified in Chapter 2003-353, Laws of Florida (collectively, "CCWSD"), and the Florida Governmental Utility Authority, a public body and legal entity created by interlocal agreement pursuant to section 163.01(7)(g), Florida Statutes ("FGUA"). WHEREAS, pursuant to section 163.41(7), Florida Statutes, and the First Amended and Restated Interlocal Agreement Relating to Establishment of the Florida Governmental Utility Authority dated December I, 2040, as it may be amended ("FGUA Interlocal"), the Board of Directors of the FGUA has all the powers to carry out the purposes of the FGUA Interlocal, including the authority to sell or otherwise dispose of the FGUA's water and wastewater utility facilities and systems; and WHEREAS, the CCWSD and the FGUA entered an interlocal agreement dated as of March 1, 1999 (the "Golden Gate Interlocal Agreement"), pursuant to which the County acting through the CCWSD authorized the FGUA to purchase certain water and wastewater systems serving the Golden Gate community (the "Golden Gate System") from Avatar Holdings, Inc. conditioned upon, among other things, the CCWSD retaining the right to acquire the Golden Gate System from the FGUA at a time of the CC WSD's choosing; and WHEREAS, pursuant to Section 1 of the Golden Gate Interlocal Agreement, the CCWSD has the right to acquire the Golden Gate System, and on June 27, 2017, the County's Board of County Commissioners, acting ex -officio. as the governing board of the CCWSD, passed Resolution 2017-123 indicating the CCWSD's desire to make such acquisition and instructing the CCWSD staff to initiate final due diligence and negotiate the terms of this Transition Agreement to complete such acquisition; and WHEREAS, on or about November 14, 2017, said Board of County Commissioners acting ex -officio as the governing board of the CCWSD, by Resolution 2017- , indicated its unequivocal intent to exercise its right to acquire the Golden Gate System and to issue the CCWSD Bonds; and WHEREAS, the FGUA has issued certain revenue bonds and incurred other indebtedness which the Golden Gate Interlocal Agreement and Indenture of Trust provides shall constitute the purchase price to be paid by the CCWSD for the Golden Gate System; and WHEREAS, the CCWSD and the FGUA desire to enter into this Transition Agreement to provide for conveyance of the Golden Gate System from the FGUA to the CCWSD and the disposition of existing FGUA assets and liabilities related to the Golden Gate System; NOW, THEREFORE, for and in consideration of the mutual premises set forth above and the covenants, obligations, duties and benefits herein set forth, the CCWSD and the FGUA agree as follows: ARTICLE I DEFINITIONS AND CONSTRUCTION SECTION 1.01. DEFINITIONS. As used in this Transition Agreement, the following terms shall have the meanings as defined herein unless the context requires otherwise: "Bond Counsel" means such attorney or firm of attorneys, of nationally recognized standing in matters pertaining to the federal tax exemption of interest on obligations issued by state and political subdivisions, and duly admitted to practice law before the highest court of any state of the United States of America. "CCWSD Bonds" means the debt obligations of the CCWSD to be issued pursuant to the Senior Lien Bond Resolution to finance all or a portion of the costs of acquisition of the Golden Gate System. "CCWSD Transition Projects" means those projects identified by the CCWSD to be funded and completed by the CCWSD, as identified in Appendix "A". "CCWSD's senior lien utility debt" means the CCWSD's Water and Sewer Refunding Revenue Bond, Series 2009, Water and Sewer Refunding Revenue Bond, Series 2013, Water and Sewer Refunding Revenue Bond, Series 2015, and Water and Sewer Refunding Revenue Bonds, Series 2016, all of which are outstanding under the Senior Lien Bond Resolution. "CCWSD Utility Resolution" means such CCWSD resolution or resolutions, collectively, as may be issued by the Board of County Commissioners of Collier County, Florida, acting ex - officio as the governing board of the Collier County Water -Sewer District related to the conveyance of the Golden Gate System from the FGUA to the CCWSD. "Clerk" shall mean the Clerk to the Collier County Board of County Commissioners, and such other person as may be duly authorized to act on his or her behalf. "FGUA" means the Florida Governmental Utility Authority created by the FGUA Interlocal. "FGUA Bonds" means: the FGUA Utility Refunding Revenue Bonds (Golden Gate Utility System), Series 2010; FGUA Utility Refunding Revenue Bonds (Golden Gate Utility System), Series 2012; and the FGUA Utility Refunding Revenue Bonds (Golden Gate System), Series 2015 Bonds; as well as the subordinate debt in the form of the 2006 State Revolving Fund loan and the 2016 SunTrust Bank loan related to the Siemens Energy Project. "FGUA Interlocal" means the First Amended and Restated Interlocal Agreement Relating to Establishment of the Florida Governmental Utility Authority among Citrus County, Nassau County, Polk County and Sarasota County dated December 1, 2000, as amended and supplemented, and any successor instrument thereof. 2 "FGUA Transition Projects" means those projects identified by the CCWSD and the FGUA initiated prior to the Transfer Date and to be completed by the FGUA as identified in Appendix "B" "Golden Gate System" means the FGUA's water and wastewater utility system located in Collier County, Florida, including all of the potable water supply, treatment, storage, and distribution systems and wastewater collection, transmission and disposal systems, including developer agreements and other service agreements, customer, operations, engineering and property records and documents related thereto, or copies thereof. "Indenture of Trust" means that certain Indenture of Trust by and between the FGUA and SunTrust Bank, Central Florida, National Association, Trustee, for the Florida Governmental Utility Authority Utility Revenue Bonds (Golden Gate Utility System), dated as of April 1, 1999 and any supplemental indentures issued pursuant thereto. "Management Services Agreement" means that certain Amended and Restated Management Services Agreement dated November 21, 2013, as amended by that certain Amendment to Amended and Restated Management Services Agreement, dated October 16, 2014, by and between the FGUA and Government Services Group, Inc. "Operations, Maintenance, Customer Service and Billing Agreement" means the Amended and Restated General Terms and Conditions Agreement, slated December 19, 2013, as amended, together with the Golden Gate System Compensation Agreement, dated March 17, 2011, each by and between the FGUA and US Water/Wade Trim, LLC, and all amendments thereto. "Plans and Specifications" means the design pians and specifications for implementation and construction of the Transition Projects. "Senior Lien Bond Resolution" means Resolution No. CWS -85-5, adopted by the CCWSD on July 30, 1985, as amended and restated by Resolution No. CWS -85-13, adopted by the CCWSD on December 26, 1985, as amended and supplemented. "Siemens Energy Project" means the FGUA project undertaken pursuant to that certain Guaranteed Energy Water and Wastewater Performance Savings Contract, dated July 25, 2016, by and between the Florida Governmental Utility Authority and Siemens Industry, Inc. "System Manager" means Government Services Group, Inc., as Manager under the terms of the Management Services Agreement. "System Operator" means U.S. Water/Wade Trim, LLC, as Contractor under the terms of the Operations, Maintenance, Customer Service and Billing Agreement. "Transition Agreement" means this Utility System Transition Agreement, including any amendments and supplements hereto executed and delivered in accordance with the terms hereof. 3 "Transaction Cost" means the costs, fees and expenses incurred by the FGUA in connection with the CCWSD's acquisition of the Golden Gate System, including but not limited to: (A) the verifiable fees and disbursement of Bond Counsel; (B) the verifiable fees and disbursements of the FGUA's financial advisor; (C) the verifiable fees and disbursements of the FGUA's utility and general counsel; (D) the verifiable fees and disbursements of the System Manager and System Operator; and (E) any other verifiable costs of a similar nature incurred by the FGUA in connection with the transition of the Golden Gate System to the CCWSD. "Transfer Date" means the date for transfer of the Golden Gate System from the FGUA to the CCWSD established in Section 3.05 of this Transition Agreement. "Transition Projects" means, collectively, the FGUA Transition Projects and the CCWSD Transition Projects. "Trustee" means Wells Fargo Bank Minnesota, N.A., 6th Street & Marquette Avenue MAC N9303-121, Minneapolis, Minnesota, 55479. SECTION 1.02. CONSTRUCTION AND INTERPRETATION. (A) Words importing the singular number shall include the plural in each case and vice versa, and words importing persons shall include firms and corporations. The terms "herein", "hereunder", "hereby", "hereto", "hereof', and any similar terms, shall refer to this Transition Agreement; the term "heretofore" shall mean before the date that this Transition Agreement is executed; and the term "hereafter" shall mean after the date this Transition Agreement is executed. (B) Each recital, covenant, agreement, representation and warranty made by a party herein shall be deemed to have been material and to have been relied on by the other parties to this Transition Agreement. All parties have participated in the drafting and preparation of this Transition Agreement, and the provisions hereof shall not be construed for or against either party by reason of authorship. SECTION 1.03. SECTION HEADINGS. Any headings preceding the texts of the several articles, sections or appendices in this Transition Agreement and any table of contents or marginal notes appended to copies hereof, shall be solely for the convenience of reference and small neither constitute a part of this Transition Agreement nor affect its meaning, construction or effect. ARTICLE II REPRESENTATIONS SECTION 2.01. REPRESENTATIONS OF THE FGUA. The FGUA makes the following representations as the basis for the undertaking on the part of the CCWSD herein contained: (A) The FGUA is a public body and legal entity created by interlocal agreement pursuant to section 163.01(7)(8), Florida Statutes. 4 (B) The FGUA has full power and authority to enter into the transactions contemplated by this Transition Agreement and to carry out its obligations hereunder. (C) The FGUA is not in default under any provisions of the laws of the State material to the performance of its obligations under this Transition Agreement. (D) The FGUA has duly authorized the execution and delivery of this Transition Agreement, and assuming the due authorization, execution and delivery by the CCWSD, this Transition Agreement constitutes a valid and legally binding obligation of the FGUA, enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by any applicable bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting creditors' rights generally, or by the exercise of judicial discretion in accordance with general principles of equity. (E) To the FGUA's knowledge, the authorization, execution and delivery of this Transition Agreement and compliance by the FGUA with the provisions of this Transition Agreement will not conflict with or constitute a material breach of, or default under, any existing law, court or administrative regulation, decree, order or any provision of the Constitution or laws of the State relating to the FGUA or its affairs, or any ordinance, resolution, agreement, mortgage, lease or other instrument to which the FGUA is subject or by which it is bound. (F) To the FGUA's knowledge, there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body pending or, to the best knowledge of the FGUA, threatened against or affecting the FGUA, wherein an unfavorable decision, ruling or finding would materially adversely affect the transactions contemplated hereby or which in any way would materially adversely affect the validity of this Transition Agreement or any agreement or instrument to which the FGUA is a party and which is used or contemplated for use in the consummation of the transactions contemplated hereby. (G) Appendix "C", attached hereto, is a schedule identifying all real property, easements and other intangible rights of the FGUA relating to the Golden Gate System. (H) Appendix "D", attached hereto, is a schedule of all existing third -party warranties that relate to completed or in -process construction. (1) Appendix "E", attached hereto, is a schedule of all current or active permits applications or other documents, together with effective dates and any expiration dates which authorize the operation of the Golden Gate System by all applicable governmental authorities. (J) Appendix "F", attached hereto, is the inventory of the equipment owned by the FGUA and used in connection with the operation of the Golden Gate System. (K) Appendix "G", attached hereto, is an estimate of inventory levels for chemicals, miscellaneous parts, and wastewater residuals used in the regular operation of the Golden Gate System that are owned by the FGUA and expected to be in the possession of the System Operator on the Transfer Date. 5 P Appendix "H", attached hereto, is a schedule of all operating and vendor contracts affecting the Golden Gate System. (M) Appendix "I", attached hereto, is a schedule of all other agreements entered into between the FGUA, its predecessors, or third parties which would reasonably be considered to be an encumbrance upon the Golden Gate System, including without limitation, any leasehold agreements or oral agreements, if any. (N) Appendix "J", attached hereto, is a schedule of any and all insurance policies currently enforceable that cover the FGUA as they may relate to the Golden Gate System specifying the name and address of each carrier, the policy number and the type of coverage provided. (G) Appendix "K", attached hereto, is a description of matters that may give rise to potential claims or disputes with respect to real property or personal property interests necessary to operate the Golden Gate System which are being conveyed to the CCWSD pursuant to this Transition Agreement. (P) Appendix "L", attached hereto, is a description of the regulatory compliance issues that are outstanding on the date of this Transition Agreement. (Q) Except those matters identified in Section 3.07 hereof, the FGUA has been neither cited nor notified, and is not, after due inquiry, aware of any violation of any governmental rule, regulations, permitting condition, or other governmental requirement of any type or nature applicable to the ownership, maintenance, construction or operation of the Golden Gate System, nor is the FGUA aware of any conditions which by reason of the passing of time or the giving of notice by the appropriate governmental agency would constitute such a violation. (R) To the best of the FGUA's knowledge and belief, and except as identified in this Transition Agreement or otherwise disclosed to the CCWSD, the real property and easements to be conveyed to the CCWSD hereunder are in compliance with, and the FGUA has not violated, in connection with its ownership, use, maintenance, or operation of the Golden Gate System, applicable federal, state, county, or local environmental laws relating to pollution or protection of the environment, including but not limited to, the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, and the Resource Conservation and Recovery Act. (S) The FGUA has not authorized the placing or depositing of hazardous substances on the real property and easements to be conveyed to the County except, if at all, in accordance with applicable law, and the FGUA has no actual knowledge of any hazardous substance having been, or currently being, placed or deposited on the real property and easements except in a lawful manner. (T) There are no facts actually known to the FGUA materially affecting the physical condition or operation of the Golden Gate System which are not readily observable or which have not been disclosed or provided to the CCWSD in connection with this transaction or otherwise. 0 SECTION 2.02. REPRESENTATIONS OF THE CCWSD. The County makes the following representations as the basis for the undertakings on the part of the FGUA herein contained: (A) The CCWSD is a political subdivision of the State of FIorida and body corporate and politic duly organized and validly existing pursuant to special acts of the Florida Legislature, as codified and reenacted in Chapter 2003-353, Laws of Florida. (B) The CCWSD has full power and authority to enter into the transactions contemplated by this Transition Agreement, to issue the CCWSD Bonds, and to carry out its obligations hereunder and thereunder. (C) The CCWSD is not in default under any provisions of the laws of the State material to the performance of its obligations under this Transition Agreement. (D) The CCWSD has duly authorized the execution and delivery of this Transition Agreement, and assuming the due authorization, execution and delivery by the FGUA, this Transition Agreement constitutes a valid and legally binding obligation of the CCWSD, enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by any applicable bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting creditors' rights generally, or by the exercise of judicial discretion in accordance with general principles of equity. (E) To the CCWSD's knowledge, the authorization, execution and delivery of this Transition Agreement and the compliance by the CCWSD with the provisions hereof will not conflict with or constitute a material breach of, or default under, any existing law, court or administrative regulation, decree, order or any provision of the Constitution or laws of the State relating to the CCWSD or its affairs, or any ordinance, resolution, agreement, mortgage, lease or other instrument to which the CCWSD is subject or by which it is bound. (F) To the CCWSD's knowledge, there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body pending or, to the best knowledge of the CCWSD, threatened against or affecting the CCWSD, wherein an unfavorable decision, ruling or finding would materially adversely affect the transactions contemplated hereby or issuance of the CCWSD Bonds, or which, in any way would materially adversely affect the validity of the CCWSD Bonds, this Transition Agreement or any agreement or instrument to which the CCWSD is a party and which is used or contemplated for use in the consummation of the transactions contemplated hereby, ARTICLE III CONVEYANCE OF THE GOLDEN GATE SYSTEM SECTION 3.01 AGREEMENT TO ACQUIRE. (A) The CCWSD hereby notifies the FGUA of its intent to acquire the Golden Gate System and issue the CC W SD Bonds on the Transfer Date, as required by Section 7.01(C) of the Indenture of Trust; provided however, that the CCWSD shall provide notice to the Trustee not W1 less than 60 days prior to the Transfer Date, as required by Section 7.01(C) of the Indenture of Trust, unless a shorter notice is approved by the Trustee. (B) Conveyance of the Golden Gate System to the CCWSD is expressly conditioned upon compliance with all requirements of the Indenture of Trust, the CCWSD Bonds, and the Golden Gate Interlocal Agreement in substance and form satisfactory to the Trustee and Bond Counsel, including but not limited to performance of the following acts and provisions of the following documents to the Trustee and the FGUA; 1. A certified copy of the CCWSD Utility Resolution of the Board of County Commissioners acting ex officio as the governing board of the CCWSD authorizing and approving the transition of the Golden Gate System from FGUA to CCWSD ownership and all acts necessary and proper to such transition and stating the CCWSD's unqualified commitment to issue the CCWSD Bonds, which shaII be parity obligations with senior lien utility debt, or stating the CCWSD's unqualified commitment to take such other action acceptable to Trustee to defease or redeem the FGUA Bonds. 2. A copy of the notice provided to the Trustee of the CCWSD's intent to issue the CCWSD Bonds, which notice shall be provided not less than 60 days prior to the Transfer Date, unless a shorter notice is approved by the Trustee. 3. A copy of the notice provided by the CCWSD to Assured Guaranty Municipal Corp. that the CCWSD Bonds shall be issued and the Golden Gate System shall be acquired by the CCWSD. 4. The CCWSD Bonds, which shall be issued pursuant to the provisions of the Senior Lien Bond Resolution on parity with the CCWSD's senior lien utility debt. 5. An opinion of Bond Counsel selected by the CCWSD to the effect that the CCWSD Bonds are valid, binding and legal obligations of the CCWSD (subject to bankruptcy and other standard exceptions) and shall be treated as "Bonds" under the Senior Lien Bond Resolution and shall be secured and be payable from the Pledged Funds (as defined in the Senior Lien Bond Resolution) on parity with the CCWSD's senior lien utility debt. 6. An opinion of Bond Counsel to the effect that (a) the Senior Lien Bond Resolution has been duly adopted or enacted, as the case may be, and is valid and enforceable in accordance with its terms, and (b) any condition precedent to the CCWSD acquiring, owning and operating the Golden Gate System has been satisfied. T All documents necessary in the reasonable opinion of counsel to the FGUA for the CCWSD and the County to hold harmless the FGUA from any actions relating to the Golden Gate System which occur either prior to or subsequent to the Transfer Date. 8. An agreement between the FGUA and the CCWSD for the CCWSD to pay (a) fees owing in regard to the operation and for management of the Golden Gate System or the operation of the FGUA as may be identified as remaining unpaid as of the Transfer Date and agreed to by the parties, and (b) all verifiable costs and expenses of the FGUA, the Trustee and 8 Assured Guaranty Municipal Corp. incurred as a result of the CCWSD's acquisition of the Golden Gate System as may remain unpaid on the Transfer Date. 9. A tax compliance agreement, satisfactory in the reasonable opi n ion of Bond Counsel, executed by an authorized officer of the CCWSD. 10. Documents transferring to the CCWSD title to the Golden Gate System and all associated assets and property, including the moneys in the funds and accounts held under the Indenture of Trust, other than the Rebate Fund (as defined in the Indenture of Trust). 11. A certificate executed by an authorized officer of the FGUA addressed to the Trustee stating that the CCWSD Bonds have been issued by the CCWSD and the Golden Gate System has been transferred to the CCWSD. 12. An agreement of the County, in form and substance satisfactory to the CCWSD, Bond Counsel and counsel to the FGUA in their respective reasonable judgment, to provide all continuing disclosure required by applicable securities law. 13. Evidence that any public hearing required by State law for the CCWSD to acquire the Golden Gate System has been held and the acquisition by the CCWSD of the Golden Gate System has been duly authorized. 14. Evidence that any public hearing required by State law for the FGUA to transfer the Golden Gate System has been hell and the transfer by the FGUA of the Golden Gate System has been duly authorized. 15. Directions from the CCWSD to the Trustee as to the transfer of moneys in the funds and accounts held under the Indenture, including any "Reserve Account Insurance Policy" or "Reserve Account Letter of Credit" (each as defined in the Indenture of Trust). 15. The CCWSD's agreement to the standard package of Assured Guaranty Municipal Corp., except to the extent it is inapplicable to the CCWSD Bonds or is in conflict with provisions of the CCWSD Senior Lien Bond Resolution. 17. A certificate signed by authorized representatives of the FGUA and the CCWSD acknowledging and attesting to the accuracy of the representations in Article II hereof as of the Transfer Date, (C) The CCWSD agrees to pay all Transaction Costs incurred by the FGUA and all verifiable expenses incurred by the Trustee and Assured Guaranty Municipal Corp. in connection with the CCWSD's acquisition of the Golden Gate System. Such amounts shall be paid notwithstanding any failure by the CCWSD to comply with the requirements of the Indenture of Trust and/or the Golden Gate Interlocal Agreement, or to otherwise complete its acquisition of the Golden Gate System unless the FGUA by its material breach fails to perform its obligations hereunder. (D) From the Transfer Date, the CCWSD agrees to assume all duties and responsibilities for operation and management of the Golden Gate System that until the Transfer 0 Date were duties and responsibilities of the System Operator and the System Manager under, respectively, the Operations, Maintenance, Customer Service and Billing Agreement and the Management Services Agreement. The FGUA agrees to pay any money's owing for operation and management costs and expenses related to the Golden Gate System, including those arising out of the Operations, Maintenance, Customer Service and BiIIing Agreement and the Management Services Agreement, that accrue prior to the Transfer Date and that are not Transaction Costs. (E) The CCWSD agrees to undertake all rights and responsibilities under the Operations, Maintenance, Customer Service and Billing Agreement for services rendered to the Golden Gate System, if any, after the Transfer Date. The FGUA agrees to pay any moneys owing for operation costs and expenses related to the Golden Gate System, including the Operations and Billing Agreement and Management Services Agreement, that accrue prior to the Transfer Date, that are not Transaction Costs. On the Transfer Date, the FGUA shall assign, and the CCWSD shall assume, all rights, duties and obligations under the Operations, Maintenance, Customer Service and Billing Agreement, and the FGUA and System Operator shall each be relieved of any duty or obligation to the other with respect to the Golden Gate System, arising from said agreement. (F) On the Transfer Date, the CCWSD shall pay the System Manager the equivalent of the monthly installments, or prorated portions thereof, for the unexpired period between the Transfer Date and May 13, 2018, the end of the six-month notice period provided in the Management Services Agreement, for the following services: the Basic Services (as defined in the Management Services Agreement); and the Capital Projects Administrative Services (as defined in the Management Services Agreement. No other payments shall be due the FGUA System Manager, other than Transaction Costs as provided for in this Transition Agreement. Upon payment of the fees for services as provided for in this Section 3.01(F), the FGUA and the System Manager shall execute such documents as are necessary to terminate the Management Services Agreement and the rights, remedies, duties and obligations of the parties thereunder, as of the Transfer Date. (G) The FGUA will retain in its General Fund SEVENTEEN THOUSAND SEVEN HUNDRED SIXTY-SIX AND 901100 DOLLARS ($17,766.90) from the Golden Gate Enterprise Fund at the time of transfer to the CCWSD to pay for the known costs related to Fiscal Year 2017 and Fiscal Year 2018 audit expenses. SECTION 3.02. TRANSFER, ASSIGNMENT AND ASSUMPTION. (A) On the Transfer Date, the FGUA shall transfer, assign and convey to the CCWSD all of its rights, remedies, powers, title and interest in the Golden Gate System in the following manner: 1. By special warranty deed, all of its real property identified in Appendix "C" which property includes all real property acquired by the FGUA on the date of its initial acquisition of the Golden Gate System and any other real property subsequently acquired by the 10 FGUA for and used in connection with the Golden Gate System, together with all appurtenances thereto. 2. By assignment and assumption agreement all of its rights, privileges, easements, licenses, prescriptive rights, rights of way, rights of use of public and private roads, highways, streets, railroads, or other areas owned or used by the FGUA in connection with the construction, reconstruction, installation, expansion, maintenance and operation of the Golden Gate System, including but not limited to the "easements and licenses" identified in Appendix "C", together with, and to the extent transferrable, a tacking of time periods of CCWSD ownership in addition to FGUA or predecessor ownership time periods for determining any prescriptive easement or adverse possession claim or claims. 3. By bill of sale, all of its water and wastewater treatment plants, including water supplies, wells, fire hydrants, backflow prevention devices, collection, transmission, and distribution system piping, pumping, and effluent disposal facilities of every kind and description whatsoever that are used in connection with the operation of the Golden Gate System, including, without limitation, all trade fixtures, leasehold improvements, lift stations, pumps, generators, controls, tanks, distribution, collection or transmission pipes or facilities, valves, meters, meter assemblies, meter reading devices, service connections, and all other physical facilities, appurtenances and property installations used in the operation of the Golden Gate system. 4. By bill of sale, all of its personal property used in connection with the operation of the Golden Gate System, including but not limited to all movable equipment identified in Appendix "F" and all miscellaneous parts, chemicals, fuel, and residual sludge identified in Appendix "G" actually held on the Transfer Date for use in connection with the operation of the Golden Gate System. Appendix "G" is an estimate of the inventory of said items expected to be on hand on the Transfer Date. On the Transfer Date, the actual inventory levels may differ from the estimates set forth in Appendix "G" due to use by the FGUA in the normal course of business. Two (2) days prior to the Transfer Date, the FGUA and the System Operator shall conduct a final inventory review of such items that are actually in the possession of the System Operator and which shall be conveyed to the CCWSD on the Transfer Date. The inventory of items identified in Appendix "G" shall not be unnecessarily depleted. 5. By bill of sale, all of its rights, remedies, powers, title or interest arising in the FGUA Transition Projects identified in Appendix `B" that are still in process as of the Transfer Date pursuant to Section 4.03(B) hereof; all cash, deposits, prepaid expenses and funds and accounts held under the Indenture of Trust, or otherwise maintained in connection with the Golden Gate System, except as provided in Section 3.01(G) of this Transition Agreement. b. By transfer, assignment and assumption agreement, the FGUA shall transfer and assign and the CCWSD shall accept and assume the ownership, rights, privileges, duties, obligations and responsibilities of the FGUA pursuant to; all of the FGUA's permits and governmental approvals obtained in connection with the operation of the Golden Gate System and described in Appendix "E"; all of the operating and vendor contracts affecting the Golden Gate System identified in Appendix "H"; all of the agreements entered into between the FGUA, 11 its predecessors, or third parties that would reasonably be considered to be an encumbrance upon the Golden Gate System that are identified in Appendix "I"; all rights and warranties, including but not limited to those identified in Appendix "D", that the FGUA possesses and that remain in effect as of the Transfer Date against any parties who provided services related to the FGUA Golden Gate System, including those for the FGUA Transition Projects under contract with the FGUA and from all contractors, subcontractors and material suppliers, including for work in process, and for any FGUA Transition Project, to the extent they are assignable; and all claims, including such insurance claims existing as of the Transfer Date such as weather related claims, or causes of action arising out of the FGUA's ownership and operation of the Golden Gate System, reserving to the FGUA the right to subsequently prosecute any claims against parties that relate to damages or expenses sustained by the FGUA that are independent of damages or expenses sustained by the CCWSD. (B) On the Transfer Date, all rights of the FGUA to own and operate the Golden Gate System shall be terminated in accordance with this Transition Agreement and with Resolution 2017- of the Board of County Commissioners of Collier County, Florida, acting ex -officio as the governing board of the Collier County Water -Sewer District, dated November 14, 2017. (C) On the Transfer Date, the FGUA agrees to deliver to CCWSD at CCWSD's reasonable request, to the extent consistent with the requirements set forth in this Transition Agreement, and as allowable by the facts as they are on the Transfer Date, such affidavits as are customary for the deletion of standardized title insurance exceptions contained in a title insurance commitment obtained by CCWSD to insure the real property interests identified in this Transition Agreement. (D) Following the Transfer Date, the FGUA's obligation or responsibility to act or serve as a provider of water or wastewater services as owner of the Golden Gate System will terminate and the CCWSD will assume the obligation and responsibility to provide water and wastewater services as a governmentally owned and controlled service provider within the area previously served by the FGUA. SECTION 3.03. ACCOUNTS RECEIVABLE; CUSTOMER DEPOSITS. (A) The FGUA and the CCWSD agree to cooperate to ensure an orderly transition of all FGUA customers with respect to billing and customer service activities including, but not limited to, working together to achieve a compatible format for transfer of customer data. (B) The parties agree that on and after the Transfer Date, the CCWSD will be entitled to all customer billings not previously collected by the FGUA with respect to water and wastewater collection and treatment services previously rendered by the FGUA, including uncollected revenue from the last FGUA billing period before the Transfer Date, and all subsequent billing periods after the Transfer Date. (C) The CCWSD and the FGUA agree that customer confusion concerning the transition of the Golden Gate System to CCWSD ownership will be reduced if the customers receive their initial bill for services rendered by the CCWSD (the "Initial Bill") in the same 12 billing cycle previously used by the FGUA. To avoid customers receiving two bills, one from the FGUA and one from the CCWSD, for services rendered during the final billing cycle under FGUA ownership, the CCWSD and the FGUA agree that the CCWSD shall initially read customer meters on the date or dates indicated by the FGUA's established billing cycle and the CCWSD shall render the associated bill as the CCWSD's initial bill to customers (the "Initial Bili"). The CCWSD shall retain all revenue received from the Initial Bill and shall be liable for payment of any unpaid fees and costs incurred by the FGUA through the Transfer Date in its provision of water and wastewater service to customers served by the Golden Gate System, as provided by section 3.01(D) of this Transition Agreement. (D) 4n the Transfer Date, the FGUA shall transfer to the CCWSD a sum of money equivalent to the dollar amount of customer deposits held by the FGUA for the Golden Gate System. As the CCWSD does not collect and retain customer deposits, the CCWSD will assume the obligation to return said customer deposits to those customers of the Golden Gate System that had paid them. (E) If the FGUA receives a payment after the Transfer Date from a former customer of the Golden Gate System, such payment shall be delivered to the CCWSD within seven (7) business days of the FGUA's receipt of such payment, without any right of setoff. SECTION 3.04. STATUS OF TITLE. (A) With the express knowledge of the CCWSD and the approval of the Board of County Commissioners of Collier County, the FGUA acquired the Golden Gate System from the prior owner without any warranties, assurances, or a prior survey of all existing real property interests. The CCWSD hereby acknowledges that the FGUA cannot provide warranties or assurances regarding FGUA property interests received with the original purchase of the Golden Gate System; however, the FGUA represents to the CCWSD that, except for those matters already disclosed to CCWSD and described in Appendix "K", it has not been notified of any claims or disputes with respect to real property or personal property interests necessary to operate the Golden Gate System which are being conveyed to the CCWSD pursuant to this Transition Agreement, and that the FGUA shall convey fee simple title to the real property by special warranty deed. (B) The FGUA shall provide the CCWSD with copies of any surveys of the FGUA's real property interests used in connection with the operation of the Golden Gate System that are in its possession within ten (10) days of the full execution of this Transition Agreement. The CCWSD shall have the option to order a new or updated boundary survey of any or all real property being insured by a title insurance policy hereunder. Such new surveys shall be at the CCWSD's expense and shall meet the minimum Florida standards for boundary surveys. Any such surveys shall (A) be received not less than thirty (30) days prior to the Transfer Date and updated thereafter as required by the title insurer; (B) be satisfactory and sufficient for the title insurer to delete the standard exceptions of title insurance coverage concerning encroachments, overlays, boundary line disputes or any other adverse matter which would be disclosed by an accurate survey; (C) be certified as of the then current date to the CCWSD, the FGUA, the title 13 insurance company, the title agent, or any other parties requested by the CCWSD and the title agent; and (D) show the location of all improvements and easements. Regarding material adverse matters (i.e., matters that materially interfere with the present use of the real property) disclosed by such surveys and disclosed to the FGUA, the FGUA will use its reasonable best efforts to assist the CCWSD in resolving such matters and assist in removing exclusions to coverage on the title insurance commitment. Costs incurred by the FGUA in providing such assistance are Transaction Costs as defined in this Transition Agreement. (C) The CCWSD shall, if it elects to do so, within thirty (30) days from the execution of this Transition Agreement obtain at its expense a title insurance commitment or commitments for the real property and other material easement interests as may be identified by the CCWSD from a Florida licensed title insurer of its choosing. Any such commitment shall, upon compliance with requirements set forth therein, commit the title insurer to issue a policy under an ALTA form owner's title insurance policy (the "Title Policy"). The CCWSD shall, within five (5) days of receiving the jacketed and signed commitment, deliver a copy of same to the FGUA. Prior to the Transfer Date, the FGUA will use its reasonable best efforts to assist the CCWSD in resolving any title defects that affect marketability or insurability of title to the interests in real property to be conveyed to the CCWSD. Costs incurred by the FGUA in providing such assistance are Transaction Costs as defined in this Transition Agreement. (D) The estate or interests to be insured by the Title Policy shall consist of all real property and any easements identified to the insurer by the CCWSD, and which are necessary for operation of the Golden Gate System. (E) All charges and costs for the issuance of the owner's title insurance commitments and policy(ies) shall be paid by the CCWSD. SECTION 3.05. TRANSFER DATE. The CCWSD and the FGUA acknowledge the FGUA's contractual obligation to provide its operations and management services contractors a 180 -day notice of contract cancellation, and having provided for the payment of said contractors through the final day of the effectiveness of said contracts and termination thereof, hereby establish the Transfer Date as March 1, 2418. Subject to the consent of the Trustee, the CCWSD and the FGUA may mutually agree in writing as provided in Section 5.04 hereof to an alternative Transfer Date. SECTION 3.06. BUND PROCEEDS AND FGUA FUNDS. At least twenty (20) days before the Transfer Date, the CCWSD shall provide directions to the Trustee as to the transfer of moneys in the funds of accounts held under the Indenture as provided for in section 3.01 (B)(15) hereof. SECTION 3.07. OUTSTANDING REGULATORY COMPLIANCE ISSUES. The CCWSD acknowledges the following regulatory compliance issues that are outstanding on the date of this Transition Agreement, and that are described in greater detail in Appendix "L" attached hereto: 14 (A) Florida Department of Environmental Protection Administrative Order AO - 20150616 -SD directing the FGUA to correct specified deficiencies; (B) Florida Department of Environmental Protection September 1, 2015, notice regarding WWTP Class I Injection System monitoring data; (C) Florida Department of Environmental Protection October 30, 2015, letter initiating Lead and Copper Rule semi-annual monitoring plan. (D) The CCWSD shall have the opportunity to participate in all negotiations with any relevant governmental regulatory body concerning all required corrective actions and monetary penalties associated with all regulatory compliance issues. The CCWSD agrees that on the Transfer Date, the CCWSD will assume all of the FGUA's obligations with regard to regulatory compliance, including but not limited to, the fulfillment of any condition imposed by a regulatory agency and the payment of any fines, costs and penalties. SECTION 3.08. TRANSFER OF PERMITS. Within ten (10) days after the execution of this Transition Agreement, the CCWSD and the FGUA shall commence requisite action to notify the requisite governmental regulatory agencies of the forthcoming transfer of the permits and governmental approvals identified in Appendix "E" from the FGUA to the CCWSD. Both parties shall timely cooperate and provide all necessary assistance in the transfer of such permits and approvals after conveyance of the Golden Gate System on the Transfer Date. Upon the Transfer Date, the CCWSD shall assume all obligations under the permits and governmental approvals necessary for the continued operation of the Golden Gate System. SECTION 3.09. RISK OF LUSS. At all times prior to and through the Transfer Date, the FGUA shall maintain adequate fire and extended insurance coverage for the cost of any repairs to or replacement of the Golden Gate System that may be required by casualty damage. The risk of loss prior to the Transfer Date shall remain with the FGUA. The risk of loss shall pass to the CCWSD upon the Transfer Date. SECTION 3.10. FGUA DISCLOSURE OBLIGATIONS. The FGUA shall comply with any FGUA disclosure obligations as may be required by the FGUA Bonds and the Indenture of Trust in such manner and time to permit the closing of the transaction contemplated in this Transition Agreement on or before the Transfer Date. SECTION 3.11. FURTHER ASSURANCES. SECTION 3.11. FURTHER ASSURANCES. The FGUA shall, after the Transfer Date, upon reasonable request of the CCWSD, undertake such actions as may reasonably be required to perform any of the FGUA's obligations as set forth in this Transition Agreement, and execute, assign, acknowledge and deliver, or cause to be executed, assigned, acknowledged and delivered, all such further documents, deeds, easements, assignments, transfers, powers of attorney and assurances that are in the ownership or control of the FGUA and as may be reasonably required to perform any of the FGUA's obligations which are being transferred to the CCWSD as set forth in this Transition Agreement. Verifiable costs incurred by the FGUA in fulfilling such request of the CCWSD, or in providing at the request of CCWSD additional information or assistance after the Transfer 15 Date relating to the Golden Gate System, shall be deemed Transaction Costs, and shall be paid by the CCWSD. SECTION 3.12. DUE DILIGENCE ACCESS RIGHTS. The FGUA and the CCWSD have cooperated in the CCWSD's conduct of due diligence activities through the date of execution of this Transition Agreement, from and after the date of execution of this Transition Agreement by both parties, and at all times prior to the Transfer Date, and the parties agree that the CCWSD shall have the right, at any reasonable times during normal business hours with one (1) day's prior notice to the FGUA, to enter upon the FGUA's property to inspect the Golden Gate System, to familiarize itself with day-to-day operations including access to billing hardware and software, to review the operational practices of the FGUA and the System Operator, to coordinate with the FGUA the necessary transition activities, and to ensure compliance with any and all federal and state regulatory requirements; provided, however, that such access shall not be had or done in any manner so as to unreasonably interfere with the normal conduct of the Golden Gate System. Any additional costs to the FGUA or costs from CCWSD's damage to the Golden Gate System arising out of CCWSD's exercise of its rights of access under this Section 3.12 shall be deemed Transaction Costs payable to the FGUA as set forth in this Transition Agreement. MI-AI[QanoMA TRANSITION PROJECTS SECTION 4.01. FGUA TRANSITION PROJECTS. (A) Subject to the provisions of Section 4.03 below, the FGUA will be responsible for carrying out the FGUA Transition Projects in accordance with their respective Plans and Specifications, including but not limited to (1) the selection of such professionals and consultants as it deems necessary or advisable, and coordinating those consultants and those professionals in the efforts necessary to obtain the appropriate permits, licenses and approvals for the FGUA Transition Projects, and (2) hiring contractors for the FGUA Transition Projects. (B) The FGUA shall obtain all necessary approvals from governmental agencies requisite to construction of the FGUA Transition Projects and will make all reasonable efforts to complete the FGUA Transition Projects prior to the Transfer Date. (C) Engineers engaged by the FGUA shall supervise construction of the FGUA Transition Projects to ensure compliance with the Plans and Specifications and accepted civil engineering practices. The CCWSD shall have the right, but not the obligation, to make inspections and conduct testing of the construction work performed by or for the FGUA on the FGUA Transition Projects. Such inspections and testing shall not be construed to constitute any guarantee on the part of the CCWSD as to materials or workmanship, nor shall they relieve the FGUA of the responsibility for the proper construction of the FGUA Transition Projects in accordance with the Plans and Specifications. 16 SECTION 4.02. CCWSD TRANSITION PROJECTS. Following the Transfer Date, the CCWSD will be responsible for completing the CCWSD Transition Projects in accordance with their respective Plans and Specifications, including but not limited to (A) the selection of such professionals and consultants as the CCWSD deems necessary or advisable, and coordinating those consultants and those professionals in the efforts necessary to obtain the appropriate permits, licenses and approvals for the CCWSD Transition Projects, (2) obtaining necessary approvals from governmental agencies requisite to construction of the CCWSD Transition Projects, and (3) hiring contractors to construct the CCWSD Transition Projects. SECTION 4.03. ASSUMPTION OF WORK IN PROCESS. (A) Within thirty (30) days after execution of this Transition Agreement by the last party to sign, the FGUA and the CCWSD shall hold a project status conference to determine which FGUA Transition Projects, if any, will not be completed prior to the Transfer Date. No less than five (5) days before the Transfer Date, the parties shall hold an additional status conference to update the status of the Transition Projects and to reconcile the accounts for such projects. (B) In the event any FGUA Transition Project has not been completed by the Transfer Date, on the Transfer Date the FGUA shall assign in writing to the CCWSD and the CCWSD shall assume all of the FGUA's rights and obligations with regard to the construction contracts, subcontracts and material supply agreements for the FGUA Transition Projects that are not completed on the Transfer Date. Such assignment shall reserve to the FGUA the right to subsequently prosecute any claims against parties that may arise as a result of any claims, actions, losses, damages or expenses sustained by the FGUA arising out of the planning, design and construction of the FGUA Transition Project; provided however, that the CCWSD also shall have the right to prosecute any such claims. ARTICLE V GENERAL PROVISIONS SECTION 5.01. INTERLOCAL AGREEMENT PROVISIONS. Portions of this Transition Agreement may constitute a joint exercise of power, privilege or authority by and between the County, the CCWSD and the FGUA and may be deemed to be an "interlocal agreement" within the meaning of the Florida Interlocal Cooperation Act of 1969, as amended. In recognition thereof, this Transition Agreement shall be filed with the Clerk of the Circuit Court of Collier County. SECTION 5.02. TERM OF AGREEMENT. The term of this Transition Agreement shall commence upon approval and execution by the parties and shall terminate upon conveyance of the Golden Gate System to the CCWSD; provided however, that Article II and Sections 3.0I(C), 3.01(D), 3.01(G), 3,03, 3.08, 3.11, 3.12 and 4.02 hereof will not be terminated and shall remain in full force and effect until the obligations of the parties thereunder have been fully performed. 17 SECTION 5.43. DISPUTE RESOLUTION. The parties agree to resolve any dispute related to the interpretation or performance of this Transition Agreement in the manner provided in Chapter 164, Florida Statutes. SECTION 5.04. AMENDMENTS AND WAIVERS. No amendment, supplement, modification or waiver of this Transition Agreement shall be binding unless executed in writing by all parties hereto. No waiver of any of the provisions of this Transition Agreement shall be deemed or shall constitute a waiver of any other provision of this Transition Agreement, whether or not similar, unless otherwise expressly provided. Each such amendment, supplement, modification or waiver of this Transition Agreement shall be filed with the Clerk of the Circuit Court of Collier County. SECTION 5.05. NOTICES. All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when hand delivered or mailed by registered or certified mail, postage prepaid, to the parties at the following addresses: FGUA: Florida Governmental Utility Authority c/o Government Services Group, Inc. Attn: Stephen M. Spratt 280 Wekiva Springs Road Protegrity Plaza, Suite 2070 Longwood, Florida 32779-6026 With a copy to: Nabors, Giblin & Nickerson, P.A. Attn: Heather J. Encinosa 1500 Mahan Drive, Suite 200 Tallahassee, Florida 32308 CCWSD: Collier County Public Utilities Division Attn: Dr. George Yilmaz, Administrator 3301 East Tamiami Trail Naples, Florida 34112 With a copy to: Collier County Attorney Attn: Jeffrey A. Klatzkow, Esq. 3299 East Tamiami Trail, Suite 800 Naples, Florida 34112 18 Either of the parties may, by notice in writing given to the others, designate any further or different addresses to which subsequent notices, certificates or other communications shall be sent. Any notice shall be deemed given on the date such notice is delivered by hand, electronic mail or facsimile transmission, or three days after the date mailed. SECTION 5.06. SEVERABILITY. In the event any provision of this Transition Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. SECTION 5.07. EXECUTION IN COUNTERPARTS. This Transition Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. SECTION 5.08. APPLICABLE LAW AND VENUE. This Transition Agreement shall be governed by and construed in accordance with the laws of the State of Florida. Venue for any action or proceeding to construe or enforce the provisions of this Transition Agreement shall be in the Circuit Court in and for Collier County, Florida. SECTION 5.09. THIRD PARTIES. Nothing in this Transition Agreement is intended to inure to the benefit of any third party. SECTION 5.10. ENTIRE AGREEMENT. This Transition Agreement constitutes the entire agreement among the parties pertaining to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions of the parties, whether oral or written, pertaining to the transaction contemplated herein, except the Golden Gate Interlocal Agreement and any agreements related thereto which shall remain in effect through the Transfer Date should the transaction contemplated in this Transition Agreement fail to close or otherwise be delayed. There are no warranties, representations or other agreements among the parties in connection with the subject matter hereof, except as specifically set forth herein. (Signatures on fallowing pages) IN WITNESS WHEREOF, the Board of County Commissioners of Collier County, as the governing board of Collier County, Florida, and ex -officio as the governing hoard of the Collier County Water -Sewer District, has caused this Utility System Transition Agreement to be executed and delivered this day of , 2017. BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, as the governing board of Collier County, Florida, and ex -officio as the governing board of the COLLIER COUNTY WATER -SEWER DISTRICT By: ATTEST: DWIGHT E. BROCK, Clerk Deputy Clerk Approved as to form and legality: Scott R. Teach Deputy County Attorney 20 Penny Taylor, Chairman IN WITNESS WHEREOF, the Florida Governmental Utility Authority has caused this Utility System Transition Agreement to be executed and delivered this day of .2017. ATTEST: Secretary -Treasurer 21 FLORIDA GOVERNMENTAL UTILITY AUTHORITY By: Lea Ann Thomas, Chair CCWSD TRANSITION PROJECTS Project Name: Golden Gate LS 4 Collection System Repairs Project No.: GGP09 Engineer: Source, Inc. Engineer WA: SI 17-01 and PO #20170255 Contractor: TSD Status: Currently the Engineer, Source, Inc., has completed the draft bid docs. The draft bid docs need to be reviewed and finalized before the project is advertised for bid. The lift station 44 collection system has severe defects which need to be corrected. This project includes the rehabilitation of the collection system via liners, point repairs, lateral repairs, testing and sealing, and cleaning & televising. Project Name: Golden Gate WWTP DIW & MW Tracer Plan Project No.: NIA — Operational Expense Engineer: CDM Smith, Inc. Engineer WA; CDM 17-01 and PO #20170285 Contractor: TBD, sampling anticipated to be performed by the operator, Status: The Florida Department of Environmental Protection requested that the FGUA further investigate the use of tracers as a method to determine the potential hydraulic connection between the Golden Gate Class I Injection Well and the lower monitoring zones in the on-site dual zone monitoring well. This concern originates from a notice received by FDEP, dated September 1, 2015. The FGUA engaged CDM Smith, Inc. to prepare a written tracer plan for the evaluation of any potential hydraulic connection. As of 8/24/2017 discussions have been held with FDEP regarding the draft tracer plan and based on these discussions the written tracer plan is being finalized. Upon finalization of the tracer plan, a 5-12 month evaluation 1 sampling period will be performed and based on the results, direction of any future work (if any) will be determined. Project Name: Guaranteed Energy, Water and Wastewater Performance Savings Contract (GG) Project No.: FGUA PD# 20160353, Siemens Project Number 440P-162921 Engineer: Siemens Industry, Inc. Engineer WA: N/A Contractor: Siemens Industry, Inc. Status: This project consists of three Facility Improvement Measures (FIM's): Lighting improvements at the Golden Gate Booster Pump Station, replacing two of the three blowers at the Golden Gate Wastewater Treatment Plant with Neuros high speed turbo blowers, and Advanced Metering Infrastructure (AMI) upgrades. The lighting improvements are currently being scheduled by the Contractor, the Neuros blowers have been delivered (the pre -construction meeting for this FIM is currently scheduled for 912912017), and the AMI upgrades are in - progress. Although this project is anticipated to be substantially complete prior to Collier County acquiring the Golden Gate system, Collier County will be responsible for the annual payments to Siemens Industry, Inc. that are associated with the Performance Assurance Service Program (PASP) as discussed in Schedule C, Article 2 of the Contract once the acquisition has occurred. The PASP is necessary to maintain the savings guarantee provided by the Contract. APPENDIX "B" FGUA TRANSITION PROJECTS Contractor FGUA WA FGUA Project Description Comments JOB COMPLETION No Na. DATE USWWT 17-58 GGPO1 LS 418 PUMP ill COMPLETE, 11/7/2016 REPLACEMENT PENDING INVOICE USWWT 17.63 GGPOI LS #19 REPLACE PUMP #2 COMPLETE, 11/7/2016 PENDING INVOICE USWWT 17.59 TBD GG LS #1 PUMP #2 COMPLETE, 12/13/2016 REPLACEMENT PENDING INVOICE USWWT 17-137 GGP01 GG - LS 913 Pump#1 COMPLETE, 1/5/2017 Replacement PENDING INVOICE GOLDEN GATE - SUPPORT USWWT 17-200 TBD NEW HYDRANT INSTALL COMPLETE, 4/5/2017 PENDING INVOICE AT 12285 COLLIER BLVD REPAIR FORCE MAIN BREAK (3RD PARTY) AT COMPLETE, 5/9/2017 USWWT TBD TBD 4916 GOLDEN GATE PENDING INVOICE PKWY REPAIR FORCE MAIN USWWT 17.222 TBD BREAK AT WHISTLER'S COMPLETE, 5/12/2017 PENDING INVOICE GREEN APARTMENTS GG RO WASTE STREAM USWWT TBD TBD ANALYSIS FOR DIW COMPLETE, 5/15/2017 PENDING INVOICE PERMIT RENEWAL GOLDEN GATE 10 INCH USWWT TBD TBD WM BREAK AT 3000 COMPLETE, 5/22/2017 PENDING INVOICE TROPICANA PKWY GG REHAB PUMPS AT USWWT 17.19 GG P03 GREEN BLVD BOOSTER COMPLETE, 5/23/2017 PENDING INVOICE STATION USWWT TBD TBD 10 INCH WM BREAK AT COMPLETE, 5/28/2017 270144TH ST SW PENDING INVOICE GOLDEN GATE 6 INCH USWWT 17-201 TBD WM BREAK AT 5460 COMPLETE, 5/29/2017 LAUREL RIDGE LANE ON PENDING INVOICE GREEN BLVD. FGUA WA FGUA Project JOB COMPLETION Contractor Description Comments No No. DATE E&D REHAB OF TREATMENT Contracting N/A GG P07 UNIT NO. 1 GOLDEN CLOSEOUT IN 5/12/2017 Services GATE WWTP PROGRESS GG REPLACE FAILED USWWT 17-135 GGP02 PLANT #1 HYDRO COMPLETE, 6/23/2017 PENDING INVOICE RANGER FLOW METER REPLACE DIW ANNULUS USWWT 17-136 GGP02 PRESSURE TANK AND AIR COMPLETE, 7/13/2017 PENDING INVOICE COMPRESSOR USWWT 17-07 GGP02 GG WWTP REPLACE COMPLETE, 9/10/2017 CLARIFIER DRIVE #2 PENDING INVOICE SIEMENS METER USWWT 17-24 GG POS CHANGEOVT RELATED COMPLETE, 8/16/2017 PENDING INVOICE WORK USWWT 17-224 TBD CATWALKANDPLANT#1 COMPLETE, 8/18/2017 WELDING REPAIRS PENDING INVOICE GG WTPTVAND REHAB USWWT 17.127 GG P03 IN PROGRESS TBD WELLS 1, 3, 4 Tv WELL 97A, #5, 48, #10 USWWT 17-186 TBD IN PROGRESS TBD AND #11 FOR DAMAGE GOLDEN GATE - CORE DRAIN HOLE FOR OLD USWWT 17-210 TBD IN PROGRESS TBD SULFURICTANK CONTAINMENT GOLDEN GATE - INSTALL USWWT 17-243 TBD DISCONNECTS FOR HIGH IN PROGRESS TBD SERVICE PUMPS AT WTP GG WWTP INSTALL DIW USWWT 17.47 GGPO2 BACKUP GENERATOR IN PROGRESS TBD AND ATS GOLDEN GATE - DIW USWWT TBD TBD IN PROGRESS TBD PUMP #2 FAILURE GG MEMBRANE USWWT TBD TBD IN PROGRESS TBD ELEMENT DAMAGE APPENDIX "C" REAL PROPERTY, EASEMENTS AND INTANGIBLE RIGHTS Real Property Parcel 1 Water Treatment Plant Site 4751 Green Blvd. Parcel ID No. 37920040003 Book 2536, Page 900 Tract 1, GOLDEN GATE ESTATES, UNIT 26, a Subdivision, according to the Map or Plat thereof on file and recorded in the Office of the Clerk of the Circuit Court, recorded in Plat Book 7, Pages 15 and 15, Public Records of Collier County, Florida; LESS AND EXCEPT that parcel of land conveyed to South Florida Management District described in Quit Claim Deed recorded in Official Records Book 1604, Page 800. Parcel 2 Wastewater Treatment Plant Site 4931 32nd Ave. SW Parcel ID No. 36450440006 Book 2536, Page 0900 and Book 2536, Page 0948 All of Blocks 255, 257 and 258, Unit 7, Golden Gate, a Subdivision, according to the Map or Plat thereof on file and recorded in the Office of the Clerk of the Circuit Court, recorded in Plat Book 5, page 135, Public Records of Collier County, Florida. Parcel 3 Wastewater Treatment Plant Site 4300 Golden Gate Pkwy. Parcel ID No. 36560120009 Book 2536, Page 0900 A parcel of land in Collier County, Florida, more particularly described as follows and being a part of the Plat of Tract A of GOLDEN GATE UNIT 8, PART 2, as recorded in Plat Book 9, Page 111, of the Public Records of Collier County, Florida, more particularly described as follows: COMMENCING at the Northwest corner of Tract A; thence running South a distance of 649.27 feet along the West boundary of said Tract A; thence running East 336.31 feet to a point, said point being also described as the POINT OF BEGINNING; thence run North 89° 54' 21" East, a distance of 333.15 feet to a point; thence run North 0° 09' 03" East a distance of 75.04 feet to a point; thence run North 23° 43' 43" East a distance of 104.18 feet to a point; thence run North 47° 07' 42" West a distance of 196.55 feet to a point; thence run South 89° 44' 56" West a distance of 184.50 feet to a point; thence run South 50° 09' 46" West a distance of 14.20 feet to a point; thence run South 11 ° 04' 09" West a distance of 113.36 feet to a point; thence run South 3° 45' 30" West a distance of 183.92 feet to the POINT OF BEGINNING. Parcel 4 Lift Station 4475 23rd Ave. SW Parcel ID No. 35774000004 Book 2536, Page 900 The South 35 feet of the West 35 feet of Lot 1, Block 59, UNIT 2, GOLDEN GATE SUBDIVISION, according to the Map or Plat thereof on file and recorded in the Office of the Clerk of the Circuit Court, recorded in Plat Book 5, Pages 65 thru 77, the Public Records of Collier County, Florida. Note: Any information in this Appendix related to the real property in addition to the actual legal descriptions is provided for informational purposes only. To the extent that the additional information describes land different from the actual legal description, the actual legal description shall control. Easements and Licenses 1. That certain UTILITY EASEMENT dated June 12, 2001, by Collier County to the Florida Governmental Utility Authority, recorded in Official Records Book 2931, Page 1895 of the Public Records of Collier County, Florida. 2. That certain EASEMENT dated July 12, 2002, by Wayne Ruben and Benderson Development Company, Inc., to the Florida Governmental Utility Authority, recorded in Official Records Book 3109, Page 2916 of the Public Records of Collier County, Florida. 3. That certain UTILITY EASEMENT dated March 20, 2003, by Collier County to the Florida Governmental Utility Authority, recorded in Official Records Book 3399, Page 2351 of the Public Records of Collier County, Florida. 4. That certain FIRELINE AND HYDRANT UTILITY EASEMENT dated November 20, 2003 by the District School Board of Collier County, Florida, to the Florida Governmental Utility Authority, recorded in Official Records Book 3491, Page 3483 of the Public Records of Collier County, Florida. 5. That certain UTILITY EASEMENT dated June 23, 2005, by the District School Board of Collier County, Florida, to the Florida Governmental Utility Authority, recorded in Official Records Book 4112, Page 0766 of the Public Records of Collier County, Florida. 6. That certain UTILITY EASEMENT dated June 23, 2005, by the District School Board of Collier County, Florida, to the Florida Governmental Utility Authority, recorded in Official Records Book 4112, Page 0775 of the Public Records of Collier County, Florida. 7. That certain RIGHT-OF-WAY AND EASEMENT dated December 1, 1983, by Avatar Properties, Inc., to Avatar Utilities, Inc., recorded in Official Records Book 1052, Page 1631 of the Public Records of Collier County, Florida, as assigned by that certain ASSIGNMENT OF EASEMENT dated October 27, 2006, by and between Avatar Utilities, Inc., and the Florida Governmental Utility Authority, recorded in Official Records Book 4141, Page 1638 of the Public Records of Collier County, Florida. 8. That certain UTILITY EASEMENT dated March 20, 2008, by the District School Board of Collier County to the Florida Governmental Utility Authority, recorded in Official Records Book 4380, Page 0387 of the Public Records of Collier County, Florida. 9. That certain UTILITY EASEMENT dated May 20, 2008, by Collier County to the Florida Governmental Utility Authority, recorded in Official Records Book 4380, Page 0395 of the Public Records of Collier County, Florida. 10. That certain UTILITY EASEMENT dated June 25, 2008, by Win -Golden Gate Ltd., to the Florida Governmental Utility Authority, recorded in Official Records Book 4386, Page 2934 of the Public Records of Collier County, Florida. 11. That certain UTILITY EASEMENT dated October 17, 2008, by Jose M. Saco and Yvette L. Saco (Husband and Wife) to the Florida Governmental Utility Authority, recorded in Official Records Book 4432, Page 3171 of the Public Records of Collier County, Florida. 12. That certain UTILITY EASEMENT dated November 6, 2009, by Golden Gate Country Club Owners representative to the Florida Governmental Utility Authority, recorded in Official Records Book 4508, Page 1308 of the Public Records of Collier County, Florida. 13. That certain UTILITY EASEMENT dated November 16, 2010, by Diocese of Venice to the Florida Governmental Utility Authority, recorded in Official Records Book 4644, Page 1265 of the Public Records of Collier County, Florida. 14, That certain UTILITY EASEMENT dated April 7, 2011, by West Coast Development Corporation of Naples, Inc., to the Florida Governmental Utility Authority, recorded in Official Records Book 4688, Page 383 of the Public Records of Collier County, Florida. 15. That certain UTILITY EASEMENT dated October 31, 2013, by David Lawrence Mental Health Center, Inc., to the Florida Governmental Utility Authority, recorded in Official Records Book 5006, Page 3212 of the Public Records of Collier County, Florida. 16. That certain UTILITY FACILITES AND/OR UTILITIES EASEMENT(S) SUBORDINATION dated February 22, 2008, by U.S. Bank National Association, successor in interest to SunTrust Bank, Trustee, in favor of the Florida Governmental Utility Authority, recorded in Official Records Book 4335, Page 0409 of the Public Records of Collier County, Florida. 17. That certain SUBORDINATION OF MORTGAGE AND SECURITY DOCUMENTS dated May 6, 2011, by Stonegate Bank and Florida Governmental Utility Authority, recorded in Official Records Book 4801, Page 1583 of the Public Records of Collier County, Florida. 18. That certain UTILITY FACILITIES WARRANTY DEED dated June 23, 2005, between the District School Board of Collier County, Florida, and the Florida Governmental Utility Authority, recorded in Official Records Book 4112, Page 0769 of the Public Records of Collier County, Florida. 19. That certain UTILITY FACILITIES WARRANTY DEED dated June 23, 2005, between the District School Board of Collier County, Florida, and the Florida Governmental Utility Authority, recorded in Official Records Book 4112, Page 0772 of the Public Records of Collier County, Florida. 20. That certain UTILITY EASEMENT dated January 15, 1987, between Avatar Properties Inc., and Avatar Utilities Inc. of Florida, recorded in Official Records Book 1251, Page 0790 of the Public Records of Collier County, Florida. 21. That certain NON-EXCLUSIVE & PERPETUAL WATER PIPELINE EASEMENT GRANT dated May 14, 1990, between Barnett Bank of Naples and Florida Cities Water Company, recorded in Official Records Book 1577, Page 0534 of the Public Records of Collier County, Florida. 22. Easements created in that certain QUIT -CLAIM DEED dated February 25, 1985, by and between Domenic D'Agostino, Mario Vocisano, Salvatore Forlani, and Robert Vocisano, a Florida general partnership, and Avatar Utilities, Inc. of Florida, recorded in Official Records Book 1131, Page 1230 of the Public Records of Collier County, Florida. 23. That certain EXCLUSIVE AND PERPETUAL WASTEWATER FORCE MAIN EASEMENT GRANT dated August 11, 1998, between the David Lawrence Foundation for Mental Health, Inc., and Florida Cities Water Company, recorded in Official Records Book 2462, Page 0189 of the Public Records of Collier County, Florida, and re-recorded in Official Records Book 2500, Page 0411 of the Public Records of Collier County, Florida. 24. That certain EXCLUSIVE AND PERPETUAL WASTEWATER PUMPING STATION EASEMENT GRANT dated August 11, 1998, between the David Lawrence Foundation for Mental Health, Inc., and Florida Cities Water Company, recorded in Official Records Book 2462, Page 0199 of the Public Records of Collier County, Florida, and re-recorded in Official Records Book 2500, Page 0421 of the Public Records of Collier County, Florida. 25. That certain GRANT OF EASEMENT dated April 10, 1984, between Ron Flavis and Harry C. Good, as grantors, and Avatar Utilities of Florida, Inc., as grantee, recorded in Official Records Book 1078, Page 1190 of the Public Records of Collier County, Florida. 26. That certain RIGHT-OF-WAY WATER PIPELINE EASEMENT GRANT dated August 21, 1995, between Avatar Properties Inc., and Florida Cities Water Company, recorded in Official Records Book 2096, Page 2196 of the Public Records of Collier County, Florida. 27. The reservation of rights in that certain RIGHT-OF-WAY AND EASEMENT dated September 17, 1984, between Avatar Properties Inc., as grantor, and Florida Power & Light Corporation, as grantee, recorded in Official Records Book 1102, Page 0252 of the Public Records of Collier County, Florida. 28. That certain unrecorded UTILITY EASEMENT — GOLDEN GATE ELEMENTARY dated June 21, 2001, by The School Board of Collier County, Florida, as grantor, to the Florida Governmental Utility Authority, as grantee. 29. That certain GRANT OF EASEMENT dated September 27, 1982, by Golden Gate Plaza., Ltd., as grantor, to Avatar Utilities, Inc., as grantee, recorded in Official Records Book 0994, Page 1743 of the Public Records of Collier County, Florida. 30. That certain EXCLUSIVE AND PERPETUAL UTILITY EASEMENT GRANT dated September 13, 1999, between Golden Gate Shopping Center Company, and Florida Cities Water Company, recorded in Official Records Book 1561, Page 0421 of the Public Records of Collier County, Florida. 31. That certain EXCLUSIVE AND PERPETUAL UTILITY EASEMENT GRANT dated September 13, 1989, between Golden Gate Shopping Center Company, and Florida Cities Water Company, recorded in Official Records Book 1561, Page 0417 of the Public Records of Collier County, Florida. 32. That certain EXCLUSIVE & PERPETUAL WATER PIPELINE EASEMENT GRANT dated November 21, 1989, between Naples -Green Blvd. Joint Venture and Avatar Utilities Inc. of Florida, recorded in Official Records Book 1491, Page 1368 of the Public Records of Collier County, Florida. 33. That certain EXCLUSIVE & PERPETUAL GRAVITY SEWER MAIN EASEMENT GRANT dated November 21, 1989, between Naples -Green Blvd. Joint Venture and Avatar Utilities Inc. of Florida, recorded in Official Records Book 1491, Page 1351 of the Public Records of Collier County, Florida. 34. That certain unrecorded EASEMENT VACATION dated July 9, 1980, by GAC Utilities Inc. of Florida, in favor of John W. Payne. 35. That certain EXCLUSIVE & PERPETUAL WASTEWATER FORCE MAIN EASEMENT GRANT dated April 6, 1989, between The School Board of Collier County, Florida, and Florida Cities Water Company, recorded in Official Records Book 1452, Page 1435 of the Public Records of Collier County, Florida. 36. That certain EXCLUSIVE AND PERPETUAL WASTEWATER PUMPING STATION EASEMENT GRANT dated April 6, 1989, between The School Board of Collier County, Florida, and Avatar Utilities Inc., of Florida, recorded in Official Records Book 1452, Page 1430 of the Public Records of Collier County, Florida. 37. That certain unrecorded UTILITY EASEMENT dated .Tune 17, 1999, by John J. Nevins, as Bishop of the Diocese of Venice, grantor, to the Florida Governmental Utility Authority, grantee. 38. All other easements, licenses, rights of ingress and egress, right-of-way utilizations and other access rights of any kind used in the operation of the Golden Gate System owned or possessed by the FGUA, whether recorded or unrecorded. APPENDIX "D" WARRANTIES FOR CONSTRUCTION IN PROGRESS USwW FG UA FG UA Emergency7 Wd Amount Purchase JO8 WARRANTY Contractor Tracking WA System Project Description Estimated Submitted Order No Comments COMPLETION END DATE No. No No. / Approved DATE Amount EXTEND8INCH USWWT 2570-217 16-305 GG GGP01 FM AT CR -951 N/A 20160412 COMPLETE 9/15/2016 9/15/2017 AND PINE 9,373.70 RIDGE ROAD GREEN BLVD USWWT 2570.198 16-232 GG GGP03 BOOSTER N/A 20160375 COMPLETE 9/21/2016 9/21/2017 STATION GST 59,503.90 REPAIRS GG WWiP DRAIN AND USWWT 2570-189 16-248 GG GGP07 CLEAN PLANT N/A 20160369 COMPLETE 9/27/2016 9/27/2017 59,471.09 1#2 INCLUDING DIFFUSERS GOLDEN GATE WTP LIGHTNING STRIKE USWWT 2590-576 16-342 GG OP EX DAMAGED N/A COMPLETE 10/10/2016 10/10/2017 NETWORK 7,000.00 6,964.99 CARD FOR TRAIN #1 AND TUA FLOW METER DISPLAY GG W WTP USWWT 2570.223 17-41 GG OP EX LIGHTNING 20170106 COMPLETE 10/10/2016 10/10/2017 STRIKE 10,000.00 116.44 DAMAGE GG W WTP DIW USWWT 2570-227 17-39 GG OP EX MW INTEGRITY N/A 20170093 COMPLETE 10/28/2016 10/28/2017 19,926.54 TEST 20170182COMPLETE, LS#18 PUMP renumber USWWT 2570-216 17-58 GG GGP01 #1 16,000.00 12,364.54 ed PENDING 11/7/2016 11/7/2017 REPLACEMENT INVOICE 20170226 20170184 COMPLETE, USWWT 2570-226 17-63 GG GGP01 LS #19 REPLACE renumber PENDING 11/7/2016 11/7/2017 PUMP #2 15,000.00 12,888.18 ed INVOICE 20170227 GG LIFT STATION PUMP USWWT 2570-103 16-08 GG GGPOI REPLACEMENTS N/A 20160068 COMPLETE 12/8/2016 12/8/2017 AND 14,054.84 IMPROVEMENT S GG LS #1 PUMP COMPLETE, USWWT 2570.230 17.59 GG TBD #2 TED PENDING 12/13/2016 12/13/2017 REPLACEMENT 22,000.00 21,803.12 INVOICE GG - LS #13 COMPLETE, USWWT 2570-232 17-137 GG GGP01 Pump #1 20170287 PENDING 1/5/2017 1/5/2018 Replacement 10,000.00 10,838.18 INVOICE USWWT FGUA FGUA EmergencyAmount WO I Purchase I JOB WARRANTY Contractor Tracking WA System Project Description Estimated Submitted Order No Comments COMPLETION END DATE No. No No. / Approved DATE Amount USWWT 2570.197 16-193 GG GGP03 WTP CAUSTIC N/A 20160296 COMPLETE 1/6/2017 1/6/2018 FEED SYSTEM 67,788.32 GG WTP HSP #2 USWWT 2570-209 16.277 GG GGP03 DISCHARGE N/A 20160397 COMPLETE 1/10/2017 1/10/2018 2,305.68 VALVE INSTALL AN USWWT 2570-221 17.12 GG GGP03 ARV ON HSP N/A 20170100 COMPLETE 1/10/2017 1/10/2018 DISCHARGE 1,224.95 PI PE GG INSTALL ETHERNET USWWT 2570-218 17-08 GG GGP03 SURGE N/A 3,715.23 20170117 COMPLETE 1/13/2017 1/13/2018 PROTECTION AT WTP INSTALL SODIUM USWWT 2570-215 16-286 GG GGP03 HYDROXIDE N/A 20160415 COMPLETE 1/16/2017 1/16/2018 32,822.17 FEED SYSTEM CONTROL REPLACE WWTP USWWT 2570-190 17-36 GG GGP02 CHLORINE N/A 20170105 COMPLETE 1/20/2017 1/20/2018 PUMP SKID 25,125.40 ANDCHLORINE PUMP #3 GOLDEN GATE BAC-T TESTING USWWT 2570.234 17-167 GG OPERFORTANK N/A 20170289 COMPLETE 1/25/2017 1/25/2018 fNSPECTIONS 660.46 AT GOLDEN GATE REPLACE TUA USWWT 2570-203 17-125 GG GGP03 DRIVE UNIT AT 20170265 COMPLETE 1/27/2017 1/27/2018 THE GOLDEN 10,000.00 25,124.72 GATE WTP GG REPLACE CHECK VALVE USWWT 2570-210 17-04 GG GGP03 FOR PUMP#1 N/A 20170116 COMPLETE 2/3/2017 2/3/2018 AT GREEN BLVD 8,866.87 BOOSTER STATION REPLACE GREEN BLVD USWWT 2570-219 17-09 GG GGP03 BOOSTER N/A 20170099 COMPLETE 2/3/2017 2/3/2018 STATION PUMP 38,530.26 ISOLATION VALVES DISPOSE OF OLD BULK USWWT 2570-231 17.148 GG OF, EX SULFURICACID 20170257 COMPLETE 2/21/2017 2/21/2018 (H2504)AT 10,000.00 13,986.28 GOLDEN GATE WTP WELL #5 USWWT 2570-235 17-114 GG GGP03 REPLACE N/A 20170193 COMPLETE 3/9/2017 3/9/2018 ISOLATION AND 3,901.66 CHECK VALVE USWWT FG UA FGUEmergency A Amount 106 W0 Purchase WARRANTY Contractor Tracking WA System Project Description Estimated Submitted Order No Comments COMPLETION END DATE No. No No. Amount / Approved DATE GG REPLACE #1 USWWT 2570.220 17-13 GG GGP03 LIME SLURRY N/A 16,917.54 20170101 COMPLETE 3/21/2017 3/21/2018 PUMP GOLDEN GATE - SUPPORT NEW COMPLETE, USWWT 2570.245 17.200 GG TBO HYDRANT N/A TBD PENDING 4/5/2017 4/5/2018 INSTALL AT 1,500.59 INVOICE 12285 COLLIER BLVU WTP IPS PUMP USWWT 2570.238 17-131 GG GGP03 #2 N/A 7,505.58 20170247 COMPLETE 4/12/2017 4/12/2018 REPLACEMENT REPAIR FORCE MAIN BREAK COMPLETE, USWWT 2510.03 TBD GG TBD (3RD PARTY) AT 10 ODQ OD TBD PENDING 5/9/2017 5/9/2018 4916 GOLDEN INVOICE GATE PKWY REPAIR FORCE MAIN BREAK AT COMPLETE, USWWT 2570-250 17-222 GG TBD WHISTLER'S 10,000.00 6,740.66 TBD PENDING 5/12/2017 5/12/2018 GREEN INVOICE APARTMENTS GG RO WASTE STREAM COMPLETE, USWWT 2570.249 TBD GG TBD ANALYSIS FOR TBD TBD TBD PENDING 5/15/2017 5/15/2018 DIW PERMIT INVOICE RENEWAL INSTALLPH USWWT 2570-222 17-66 GG MONITORING N/A 20170185 COMPLETE 5/16/2017 5/16/2018 AT FINISHED 6,979.93 WATER GOLDEN GATE 10 INCH WM COMPLETE, USWWT 2570-254 TBD GG TSD BREAK AT 3000 TBD TBD PENDING 5/22/2017 5/22/2018 TROPICANAINVOICE 51000,00 PKWY GG REHAB PUMPS AT COMPLETE, USWWT 2570.211 17-19 GG GGPO3 GREEN BLVD N/A 55,993.17 20170118 PENDING 5/23/2017 5/23/2018 BOOSTER INVOICE STATION 10 INCH WM COMPLETE, USWWT 2570 -XX TBD GG TBD BREAK AT 2701 TBD TBD PENDING 5/28/2017 5/28/2018 44TH ST SW 10,000.00 INVOICE GOLDEN GATE 6INCH WM COMPLETE, USWWT 2570-255 17-201 GG TBD BREAK AT 546D TBD PENDING 5/29/2017 5/29/2018 LAUREL RIDGE 15,000.00 6,687.51 INVOICE LANE ON GREEN BLVD. GOLDEN GATE WWTP - UPGRADETHE USWWT 2570.246 17.165 GG GGP02 DIFFUSER N/A 20170288 COMPLETE 6/12/2017 6/12/2018 9,865.29 SOCKS & INSTALL30 NEW USWWT FGUA FGUA Emergency WO Amount Purchase JOB WARRANTY Contractor Tracking WA System Project Description Estimated Submitted Order No Comments COMPLETION END DATE No. No No. / Approved DATE Amount DIFFUSERS FOR PLANT#1 REHAB OF E&D TREATMENT CLOSEOUT Contracting N/A N/A GG GG P07 UNIT NO. 1 N/A 1,044,075.0 20170167 IN 6/12/2017 6/12/2018 Services GOLDEN GATE 0 PROGRESS WWTP GG REPLACE FAILED PLANT COMPLETE, USWWT 2570.236 17-135 GG GGP02 #1 HYDRO N/A 20170198 PENDING 6/23/2017 6/23/2018 RANGER FLOWINVOICE 4,800,39 METER GG WWTP DRAIN AND USWWT 2570.186 16-247 GG GGP07 CLEAN PLANT N/A 20160370 COMPLETE 6/26/2017 6/26/2018 97,217.92 #1 FOR PLANT REHAB WORK REPLACE DIW ANNULUS COMPLETE, USWWT 2570-239 17-136 GG GGP02 PRESSURE N/A 20170199 PENDING 7/13/2017 7/13/2018 TANK AND AIR 18,475.84 INVOICE COMPRESSOR GG WWTP COMPLETE, USWWT 2570.205 17-07 GG GGP02 REPLACE N/A 20170124 PENDING 8/10/2017 8/10/2018 CLARIFIER 34,575.19 INVOICE DRIVE #2 SIEMENS COMPLETE, USWWT 17-24 GG GGP05 METER N/A 20170042 PENDING 8/16/2017 8/16/2018 CHANGEOUT 22,424,71 INVOICE RELATED WORK CATWALKANb COMPLETE, USWWT 2570.259 17-224 GG TBD PLANT #1 N/A TBD PENDING 8/18/2017 8/18/2018 WELDING 25,926.99 REPAIRS INVOICE GG WTP TV IN USWWT 2570-225 17-127 GG GGP03 AND REHAB N/A 48,016.19 20170195 PROGRESS TBD TBC) WELLS 1, 3, 4 TV WELL #2A, USWWT 2570.252 17.186 GG TBD #5, #8' #10 N/A TBD IN TBD TBD AND#11 FOR 41,468.82 PROGRESS DAMAGE GOLDEN GATE - CORE DRAIN IN USWWT 2570-253 17-210 GG TSD HOLE FOR OLD N/A 1,288.69 TBD PROGRESS TBD TBD SULFURIC TANK CONTAINMENT GOLDEN GATE - INSTALL USWWT 2570.260 17.243 GG TBD DISCONNECTS N/A TBD IN TBD TBD FOR HIGH 37,489.86 PROGRESS SERVICE PUMPS AT WTP GG WWTP INSTALL DIW IN USWWT 2570-201 17-47 GG GGP02 BACKUP N/A 61,538.69 20170119 PROGRESS TBD TBD GENERATOR AND ATS USWWT FGU FGUA EmergencyA Amount JOB WO Purchase WARRANTY Contractor Tracking WA System Project Description Submitted Comments COMPLETION No. Na No. Estimated J Approved Order Na DATE END DATE Amount GUARANTEED ENERGY, WATER AND SIEMENS N/A N/A GG WASTEWATER N/A 1,040,387.0 20160353 TBD TBD PROGRESS PERFORMANCE 0 SAVINGS CONTRACT GOLDEN GATE - USWWT 2570-261 TBD GG TBD DIW PUMP tit TBD TBD 7PROGIRESSTBD TBD 20,D00.00 FAILURE GG MEMBRANE USWWT 2570-240 TBD GG TBO ELEMENT TBD TBD TBD TBD 70000.D0 PROGRESS DAMAGE APPENDIX "E" ' u1NVI WA TER Florida Department of Environmental Protection Public Water System ID No. 5110117 South Florida Water Management District Water Use Permit No. 11-00148-W (Issued March 1, 2010 —Expires March 10, 2030) WASTEWATER Florida Department of Environmental Protection Domestic Wastewater Facility Permit No. FLA 142140 (Issued June 16, 2015 — Expires June 15, 2020) CLASS I INJEC TION S YS TEM Florida Department of Environmental Protection IW -1 Operation Permit No. 253889-003-UOII I (Issued July 16, 2012 — Expired July 15, 2017 — Renewal application pending) APPENDIX "F" INVENTORY OF EQUIPMENT FGUA OWNED EQUIPMENT IN GOLDEN GATE NO. ITEM YEAR MAKE CONDITION 1 John Deere Tractor with mower & pull behind disc John Deere Good 2 Portable Generator Good 3 Toro Lawn Mower 2017 Toro 3000 series Z master 25.5HP Excellent 4 Wrich Trash Pump Marrow Poor 5 Lab Incubator @ WWTP Fisher Scientific Good 6 Lab Oven @ WWTP Blue M Good 7 Weigh scales @ WWTP Fisher Scientific Good 8 Microscope Micromaster Good 9 SCBA equipment @ WTP Raco Average, haven't been certified and no longer in use 10 5CBA equipment @ WTP Scott Average, haven't been certified and no longer in use 11 3- Power Data Loggers M @ WWTP Good APPENDIX "G" ESTIMATED INVENTORY LEVELS — PARTS, CHEMICALS, AND RESIDUALS Miscellaneous Parts Location Name/Description Category Size Qty Golden Gate comp. x male coupling Brass parts 314" 1 Golden Gate comp. x male coupling Brass parts l" i Golden Gate comp x female coupling Brass parts 1" l Golden Gate 3" nipple Brass parts 314" 1 Golden Gate 6" nipple Brass parts 314" 1 Golden Gate 12" nipple Brass parts 314" 1 Golden Gate comp. x comp. coupling Brass parts 1" 2 Golden Gate comp. x com . coupling Brass parts 2" 2 Golden Gate meterspud Brass parts 1" 2 Golden Gate meterspanner Brass parts 314" 2 Golden Gate meterspanner Brass parts 1 " 2 Golden Gate corp. stop Brass parts 314" 2 Golden Gate corp. stop Brass parts 1" 2 Golden Gate meter yoke Brass parts l" 2 Golden Gate 3" nipple Brass parts 1-112" 2 Golden Gate fern x fem valve Brass parts i" 4 Golden Gate meter yoke Brass parts 314" 4 Golden Gate comp. x com . coupling Brass parts 314" 5 Golden Gate meterspud Brass parts 314" 6 Golden Gate fem x fem valve i Brass parts 314" 6 Golden Gate comp. x comp. valve Brass parts 314" 10 Golden Gate comp. x comp. valve Brass parts 1" 10 Golden Gate wrap around repair bands Misc Parts 12" 2 Golden Gate tapping saddle Misc Parts 12" 2 Golden Gate wrap around repair bands Mise Parts 4" 2 Golden Gate hi -max I Misc Parts 10" 2 Location Name/Description Category Size Qty Golden Gate tapping saddle Misc Parts 4" 2 Golden Gate tapping saddle Mise Parts 101? 2 Golden Gate mechanical sleeve Misc Parts 8" 2 Golden Gate me a lug Misc Parts 8" 2 Golden Gate flange Misc Parts 6" 2 Golden Gate flange Misc Parts 8" 2 Golden Gate flange Misc Parts lo" 2 Golden Gate meter boxes double wllid Misc Parts 2 Golden Gate wrap around repair bands Misc Parts 2" 3 Golden Gate wrap around repair bands Misc Parts 1 o" 3 Golden Gate tapping saddle Misc Parts fi" 3 Golden Gate valve box Misc Parts 3 Golden Gate wrap around repair bands Mise Parts 6" 4 Golden Gate hi -max Misc Parts 6" 4 Golden Gate hi -max Misc Parts 8" 4 Golden Gate wrap around repair bands Misc Parts $" 5 Golden Gate tappina saddle Misc Parts 8" 6 Golden Gate valve box lid Misc Parts 8 Golden Gate meter boxes (single wllid Misc Parts 12 Golden Gate Green Paint Misc Parts 16 Golden Gate Blue Paint Misc Parts 18 Golden Gate Green Flags Misc Parts 300 Golden Gate Blue Flags Misc Parts 1500 Golden Gate slip x slip coupling PVC Parts 1-112" 1 Golden Gate Female adapter PVC Parts 2" 1 Golden Gate male adapter PVC Parts 314" 1 Golden Gate male adapter PVC Parts 1" 1 Golden Gate slip x slip 45 PVC Parts 2" 2 Golden Gate union PVC Parts 314" 2 Golden Gate union PVC Parts ]-112" 2 Golden Gate comp. coupling PVC Parts 2" 2 Location Name[Descriptiort Category Size Qty Golden Gate comp, coupling PVC Parts 3" 2 Golden Gate comp. coupling PVC Parts 4" 2 Golden Gate comp. coupling PVC Parts 1" 3 Golden Gate slip x slip coupling PVC Parts 3" 4 Golden Gate slip x slip coupling PVC Parts 6" 4 Golden Gate slip x slip 45 PVC Parts 1-1/2" 4 Golden Gate slip cap PVC Parts 2" 5 Golden Gate slip x slip coupling PVC Parts 4" 6 Golden Gate 12" nipple- PVC Parts 1-112" 6 Golden Gate slip x slip x slip "T" PVC Parts 2" 6 Golden Gate female adapter PVC Parts 1" 7 Golden Gate female adapt r PVC Parts 314" 10 Golden Gate slip x slip 45 PVC Parts 1" 10 Golden Gate slip x slip 90 PVC Parts 1" 10 Golden Gate slip x slip 90 PVC Parts 3" 10 Golden Gate female cap PVC Parts 1-112" 10 Golden Gate slip cap PVC Parts 1-112" 10 Golden Gate slip x slip x slip "T" PVC Parts 314" 10 Golden Gate slip x slip coupiing PVC Parts 2" 12 Golden Gate male adapter PVC Parts 2" 12 Golden Gate 6" nipple PVC Parts 1-112" 12 Golden Gate slip x slip coupling PVC Parts 314" 15 Golden Gate slip x slip coupling PVC Parts 1" 15 Golden Gate slip x slip 45 PVC Parts 314" 15 Golden Gate slip x slip 90 PVC Parts 314" 15 Golden Gate slip x slip 90 PVC Parts 2" 15 Golden Gate slip x slip x slip "T" PVC Parts 1-112" 15 EXISTING CHEMICALS, DIESEL AND OTHER BULK PRODUCTS - TARGET LEVELS FOR COLLIER COUNTY TRANSITION PROJECT: Golden Gate WTP PROJECT: Golden Gate Booster Station INVENTORY ITEM Units GROSS SIZE OF STORAGE CONTAINER (GALLONS/FT) TARGET LEVELS FOR TRANSITION PERCENT OF STORAGE Diesel Fuel - Plant Generator Gallons 2,000 1,000 50.00% Sodium Hypochlorite Bleach Gallons 4,000 2,000 50.00% H drofluosilisic Acid Gallons 325 163 50.00% Pebble Lime Pounds 75,000 37,500 50.00% Ammonium Sulfate Gallons 1,050 525 50.00% Caustic Soda Gallons 1,550 775 50.00% Lime Sludge Gallons 125,000 62,500 50.00% PROJECT: Golden Gate Booster Station Total PROJECT: Golden Gate WWTP GROSS SIZE INVENTORY ITEM Units OF STORAGE TARGET PERCENT OF INVENTORY ITEM Units CONTAINER LEVELS FOR STORAGE (GALLONS/FT) TRANSITION Diesel Fuel - Generator Gallons 1,000 500 50.00% Total PROJECT: Golden Gate WWTP GROSS SIZE INVENTORY ITEM Units OF STORAGE TARGET LEVELS FOR PERCENT OF CONTAINER STORAGE GALLONS/FT TRANSITION Diesel Fuel - Plant Generator Gallons 2,005 1,003 50.00% Diesel Fuel - DIW Generator Gallons 545 273 50.00% Sodium Hypochlorite Bleach Gallons 2,363 1,182 50.00% Sludge Gallons 300,000 150,000 50.00% APPENDIX "H" OPERATING AND VENDOR CONTRACTS I. U.S. Water/Wade-Trim; Amended and Restated General Terms and Conditions Agreement; December 2013. 2. U.S. Water/Wade-Trim; Amendment to Amended and Restated General Terms and Conditions Agreement; February 2014. 3. U.S. Water/Wade-Trim; Compensation Agreement for Operations and Maintenance and Customer Service and Billing for Golden Gate; March 2011. 4. U.S. Water/Wade-Trim; Amendment to Compensation Agreement for Operations and Maintenance and Customer Service and Billing for Golden Gate; March 2016. 5. Government Services Group; Amended and Restated Management Services Agreement; November 2013. 6. Government Services Group; Amendment to Amended and Restated Management Services Agreement; October 2014. APPENDIX 6(11" AGREEMENTS ENCUMBERING THE SYSTEM 1. That certain Agreement Between Collier County and the Florida Governmental Utility Authority for Provision of Wastewater Service for FPL Service Center and Retail Service, dated January 10, 2017, by the Board of County Commissioners of Collier County as the governing body of Collier County and Ex -Officio as the Governing Board of the Collier County Water -Sewer District, and the Florida Governmental Utility Authority, recorded in Official Records Book 5353, Page 2584 of the public records of Collier County, Florida. 2. That certain Agreement for Wastewater Service for Brooks Village Commercial Development on the Southwest Corner of County Road 951 & Pine Ridge Road Collier County, Florida, dated January 18, 2007 by the Board of County Commissioners of Collier County, Florida, as the governing body of Collier County and Ex -Officio as the Governing Board of the Collier County Water -Sewer District, and the Florida Governmental Utility Authority. 3. That certain Guaranteed Energy Water and Wastewater Performance Savings Contract, dated July 25, 2016, by and between the Florida Governmental Utility Authority and Siemens Industry, Inc. 4. That certain Parkway Promenade Lease, dated June 1, 2016, between Richardson Holdings of Naples, LLC, and Florida Governmental Utility Authority. Lessor's consent is required for assignment of the lease. 5. That certain Utility Infrastructure Conveyance and Service Agreement, dated March 15, 2007, by and between the Florida Governmental Utility Authority and Sembler Family Partnership #41, Ltd., recorded in Official Records Book 4223, Page 4135, of the public records of Collier County, Florida. 6. That certain Utility Infrastructure Conveyance and Service Agreement, dated September 19, 2007, by and between the Florida Governmental Utility Authority and Park East Development, Ltd., recorded in Official Records Book 4416, Page 1313, of the public records of Collier County, Florida. 7. That certain Utility Infrastructure Conveyance and Service Agreement, dated September 20, 2007, by and between the Florida Governmental Utility Authority and Win -Golden Gate, Ltd., recorded in Official Records Book 4302, Page 2643, of the public records of Collier County, Florida. 8. That certain Utility Infrastructure Conveyance and Service Agreement, dated April 17, 2008, by and between the Florida Governmental Utility Authority and The District School Board of Collier County, recorded in Official Records Book 4357, Page 1528, of the public records of Collier County, Florida. 9. That certain Water and Wastewater Utility Infrastructure Conveyance and Service Agreement, dated May 15, 2008, by and between the Florida Governmental Utility Authority and Collier County, recorded in Official Records Book 4368, Page 0591, of the public records of Collier County, Florida. 10. That certain Utility Infrastructure Conveyance and Service Agreement, dated June 13, 2008, by and between the Florida Governmental Utility Authority and Naples Parkway Community Church of God, recorded in Official Records Book 4380, Page 0376, of the public records of Collier County, Florida. 11. That certain Utility Infrastructure Conveyance and Service Agreement, dated September 18, 2008, by and between the Florida Governmental Utility Authority and Jose Saco and Yvette Saco, husband and wife, recorded in Official Records Book 4398, Page 1284, of the public records of Collier County, Florida. 12. That certain Utility Infrastructure Conveyance and Service Agreement, dated December 12, 2008, by and between the Florida Governmental Utility Authority and West Coast Development Corporation of Naples, Inc., recorded in Official Records Book 4416, Page 1303, of the public records of Collier County, Florida, 13. That certain Utility Infrastructure Conveyance and Service Agreement, dated September 17, 2009, by and between the Florida Governmental Utility Authority and Diocese of Venice, recorded in Official Records Book 4497, Page 2737, of the public records of Collier County, Florida, 14. That certain Utility Infrastructure Conveyance and Service Agreement, dated March 18, 2010, by and between the Florida Governmental Utility Authority and Messiah Lutheran Church Inc. of Golden Gate, recorded in Official Records Book 4549, Page 1548, of the public records of Collier County, Florida. 15. That certain Utility Infrastructure Conveyance and Service Agreement, dated December 17, 2009, by and between the Florida Governmental Utility Authority and C&E Love, Inc., recorded in Official Records Book 4527, Page 0105, of the public records of Collier County, Florida. 16. That certain Utility Infrastructure Conveyance and Service Agreement, dated August 19, 2010, by and between the Florida Governmental Utility Authority and Diocese of Venice, recorded in Official Records Book 4606, Page 0730, of the public records of Collier County, Florida. 17. That certain Utility Infrastructure Conveyance and Service Agreement, dated August 19, 2010, by and between the Florida Governmental Utility Authority and David Lawrence Foundation for Mental Health, Inc., recorded in Official Records Book 4606, Page 0719, of the public records of Collier County, Florida, 18. That certain Utility Infrastructure Conveyance and Service Agreement, dated April 21, 2011, by and between the Florida Governmental Utility Authority and Naples Bridge Center, Inc., recorded in Official Records Book 4679, Page 0967, of the public records of Collier County, Florida. 19. That certain Utility Infrastructure Conveyance and Service Agreement, dated July 21, 2011, by and between the Florida Governmental Utility Authority and Corporation of the Presiding Bishop of the Church of Jesus Christ of Latter -Day Saints, recorded in Official Records Book 4711, Page 3387, of the public records of Collier County, Florida. 20. That certain Utility Infrastructure Conveyance and Service Agreement, dated May 19, 2011, by and between the Florida Governmental Utility Authority and Grace Place for Children and Families, Inc., recorded in Official Records Book 4688, Page 0367, of the public records of Collier County, Florida. 21. That certain Utility Infrastructure Conveyance and Service Agreement, dated October 18, 2012, by and between the Florida Governmental Utility Authority and Reel Interest Property Group d/b/a. RIPG, recorded in Official Records Book 4857, Page 0577, of the public records of Collier County, Florida. 22. That certain Utility Infrastructure Conveyance and Service Agreement, dated February 14, 2413, by and between the Florida Governmental Utility Authority and CLIS Holding Group, LLC, recorded in Official Records Book 4895, Page 1757, of the public records of Collier County, Florida. 23. That certain Utility Infrastructure Conveyance and Service Agreement, dated December 19, 2413, by and between the Florida Governmental Utility Authority and Ministerio Internacional El Rey Jesus/Naples, Inc., recorded in Official Records Book 5006, Page 3223, of the public records of Collier County, Florida. 24. That certain Utility Infrastructure Conveyance and Service Agreement, dated December 8, 2014, by and between the Florida Governmental Utility Authority and Kelvin Donarine, a married man, and Anand Deonarine, a married man, recorded in Official Records Book 5116, Page 0835, of the public records of Collier County, Florida. 25. That certain Utility Infrastructure Conveyance and Service Agreement, dated October 7, 2014, by and between the Florida Governmental Utility Authority and Naples Christian Academy Association, Inc., recorded in Official Records Book 5087, Page 0699, of the public records of Collier County, Florida. 26. That certain Utility Infrastructure Conveyance and Service Agreement, dated August 8, 2416, by and between the Florida Governmental Utility Authority and Black River Rock, LLC, recorded in Official Records Book 5311, Page 0434, of the public records of Collier County, Florida. 27. That certain Utility Infrastructure Conveyance and Service Agreement, dated October 11, 2016, by and between the Florida Governmental Utility Authority and Palmetto Naples - Golden Gate Parkway, LLC, recorded in Official Records Book 5330, Page 3573, of the public records of Collier County, Florida. 28. That certain Utility Infrastructure Conveyance and Service Agreement, dated September 29, 2016, by and between the Florida Governmental Utility Authority and Naples Bridge Center, Inc., recorded in Official Records Book 5324, Page 2619, of the public records of Collier County, Florida. 29. That certain Water and Sewer Utility Infrastructure Conveyance and Service Agreement, dated April 19, 2001, by and between the Florida Governmental Utility Authority and District School Board of Collier County. 30. That certain Water and Sewer Utility Infrastructure Conveyance and Service Agreement, dated July 19, 2001, by and between the Florida Governmental Utility Authority and Worthwile Development III, Ltd. 31. That certain Water Utility Infrastructure Conveyance and Service Agreement, dated February 21, 2003, by and between the Florida Governmental Utility Authority and Collier County, recorded in Official Records Book 3399, Page 2355, of the public records of Collier County, Florida. 32. That certain Covenant to Cooperate, dated April 7, 1999, by and between the Florida Governmental Utility Authority and Avatar Utilities, Inc., recorded in Official Records Book 2536, Page 0917 of the public records of Collier County, Florida. 33. That certain Transfer, Assignment and Assumption Agreement (Golden Gate System — Collier County), dated April 7, 1999, by and between the Florida Governmental Utility Authority and Florida Cities Water Company, recorded in Official Records Book 2536, Page 0921 of the public records of Collier County, Florida. 34. That certain Subordination of Utility Interests, dated January 30, 2015, by and between Collier County and the Florida Governmental Utility Authority, recorded in Official Records Book 5117, Page 0015 of the public records of Collier County, Florida. APPENDIX ".I" INSURANCE POLICIES Florida Govermental utility Authority Carrier Name Carrier Address policy Number Type of Coverage Provided Property, Inland Marine, General 400 Horsham Rd, P.Q. Box Liability, Professional Liability, Arch Insurance Company 1957 Horsham PA 19044 GWPKGD212700 Employee Benefits Liability, Automobile Liability Arch Insurance Company 400 Horsham Rd, P.O. Box GWFXS0212700 Excess Liability 1957 Horsham PA 19044 3655 North Point Pkwy., Maxum Indemnity Company Suite 50OAlpharetta, 602955401 Excess Flood Georgia 30005 Indian Harbor insurance Company 505 Eagleview Blvd Suite PEC003886901 Pollution 100 Exton PA 19341 APPENDIX "x'° REAL PROPERTY CLAIMS OR DISPUTES [Attach letter with exhibits thereto — Vocisano & Romer letter 09.27.1 o.pdfJ APPENDIX "L" REGULATORY COMPLIANCE Golden Gate Wastewater Treatment Plant - Administrative Order (Golden Gates As part of the recent renewal in 2015 of the Golden Gate WWTP Operating Permit, FDEP included an Administrative Order AO -20150616 -SD to complete certain deficient items. For ease of reference the status of each item is noted next to the required completion date. Required Improvement Action Req'd Compl. Current Status Date Provide the Department a revised and accurate Process Flow Diagram that includes the demineralization concentrate line 713 1/2015 Completed within required date to the effluent PS In accordance with the table contained in Section 6 on page 27 of the revised O&M Performance Report, the permittee shall conduct inspections for rust, and evaluate and catalog 12/31/2015 Completed within required date the areas of urgency for repair T permittee shall complete repair to the rusted parts 6/30/2016 Project was bid Fall 2016. NTPhe cataloged for urgency pursuant to item III. 1.2 of this AO- Extended to was issued January l6, 2017 and 20150616 -SD. as of 8/24/2017 the prosect is 8/1/2017 substantially complete The permittee shall install and calibrate a flow measuring Installation has been completed device to accurately measure the flow from the effluent 1/31/2016 for a V -Notch Weir Box to pump station to the to the percolation ponds R-601. measure accurate flow to the ponds. * Regarding the blending of demineralization concentrate with reclaimed water: the permittee shall either obtain a variance Petition for Variance Relief was which grants relief from Rule 62-610.865, F.A.C., or shall submitted in November 2015. fully comply with Rule 62-610.865, F.A.C., which requires Questions were received from an engineering report, evaluation of vegetation tolerance, the FDEP in December 2015 and additional parameter limits, an enforceable blending ratio, 6/30/2016 responses submitted. On June 2, continuous monitoring equipment, and other specific 2416, FDEP issued "Final Order requirements. (The Department understands that blending Granting Petition for Variance concentrate with reclaimed water is done very infrequently from Rule 62-610.865, F.A.C." and that the FGUA might choose to petition for variance This item now completed, relief from strict application of rule requirements.) * The FGUA is also proceeding with installation of an Emergency Generator for the injection pump station which would complement the measuring device and pay for itself by savings in chemicals. As of 8/24/2017 all items associated with the administrative order have been completed. Notification and closeout of the administrative order should be completed sometime in September 2017. Golden Gate Wastewater Treatment Plantes Dual Zone Monitoring Well A notice was received from the FDEP dated September 1, 2015 regarding concerns with monitoring data from the FGUA Golden Gate WTP and the WWTP CIass I Injection System. Data from the zones being monitored indicate that similar water quality parameters exist in zones that previously had been different. FDEP's concerns relate to possible malfunctioning of the well such that it cannot reliably monitor for fluid movement, and or that fluid movement may be occurring. FGUA Consultant CDM Smith conducted a field study and prepared a technical evaluation dated December 16, 2016. Video inspection indicated no mechanical defects in the well and no corrective actions are recommended to the dual zone monitoring well. The evaluation also concluded that it is highly unlikely that operating pressures would initiate fracturing in the confining zone above the injection interval. It is possible that natural leakance is occurring between the monitored intervals. The evaluation recommends that geochemical evaluation of the monitor zone water quality data be conducted, involving sampling of the comingled waste stream and tracing parameters such as phosphorus and radionuclides. Work authorization No. CDM 17-01 was issued to CDM Smith to prepare a written tracer study for the evaluation of the potential hydraulic connection between the Class I Injection Well and the lower monitoring zones in the on-site dual zone monitoring well. As of 8/24/2017 the draft written tracer study has been completed by CDM and discussions have been held with FDEP regarding the plan. Direction was given by FDEP and the final tracer plan is being prepared. Upon completion of the written tracer plan there will be a 6-12 month evaluation/sampling period. It is possible that upon conclusion of the tracer study, there may be no clear indication as to the cause of the water quality issues. It is uncertain what requirements, if any, the FDEP may impose on the facility, but it could include a new replacement monitor well, or that high level disinfection be implemented at the wastewater plant. Golden Gate Water Treatment Plant — Water Quality The Golden Gate WTP and water system strives to keep water quality within acceptable limits to meet all lead and copper rule requirements. As background, corrosion has exceeded certain allowable limits and as a result the FGUA was required to perform more frequent lead and copper sampling and monitoring. In addition, a corrosion control system is required to be implemented to address the water quality issues. As background, the FGUA completed a Water Quality Analysis project in 2013 with FGUA consultant Tetra Tech that recommended various chemical process modifications to address water quality issues at the plant. The FGUA initiated a chemical conversion project for disinfection that involved switching from anhydrous ammonia to ammonium sulfate. The work was accomplished with contract operator US Water Services 1 Wade Trim through Work Authorization USWWT #16-44 and was completed and put into operation in October 2015. The FGUA further evaluated water quality related to results from its sampling and monitoring plan required by the lead and copper rule. With the assistance of the Florida Rural Water Association, the FGUA subsequently prepared and implemented a corrosion control treatment project in 2016 through Work Authorization USWWT #'s 16-193 and 16-286. The work included a new chemical feed system for sodium hydroxide which was completed in January 2017 and is currently in operation. Additional lead and copper sampling will continue to be imposed on the system until a track record of staying within allowable limits has been established PfM 255 Alhambra Circle 305 446-6992 Suite 404 305 448-7131 fax Coral Gables, FL www pfm com 33134 October 19, 2017 Memorandum — Plan of Finance To: Collier County, Florida From: PFM Financial Advisors LLC Re: Updated Memorandum -- Acquisition of Golden Gate Utility, Plan of Finance Please consider this updated memorandum discussing two scenarios to refinance and restructure all of the Golden Gate Utility Authority senior lien debt obligations. The primary update to this memorandum, in addition to providing for current market interest rates, is the consideration to refinance all three of the existing bonds, rather than refinancing portions and assuming other portions. It is our understanding upon reviewing the available documentation and discussions with the County's bond counsel that the GGUA bonds and loans were issued with the appropriate disclosures and mechanism to be acquired in their entirety by the County. In the simplest terms, in order to effectuate the acquisition the County would issue a bond (covenant) to the GGUA assuming the payment responsibility for the outstanding debt, however the bonds and loans themselves would remain as -is (no change in investor holdings). The outstanding GGUA debt is as follows: • Series 2010 Bonds, outstanding principal amount of $6,315,000 ■ Series 2012 Bonds, outstanding principal amount of $16,040,000 • Series 2015 Bonds, outstanding principal amount of $12,605,000 • 2016 SunTrust Loan, outstanding principal amount of $2,265,100 • Two (2) SRF Loans, combined outstanding principal amount of $1,433,653.28 For purposes of this memorandum, we have considered a consolidated alternative which contemplates refinancing and restructuring 100% of the senior obligations (the series 2010, 2012, and 2015 bonds). As such the County's Utility can realize overall Net Present Value Savings by virtue of reducing the interest rate on the debt, and shortening the final maturities on the GGUA bonds to better align with the County Utility's overall debt structure. In order to provide some context for the sensitivity to market conditions, we also performed the same analysis with the assumption that actual interest rates on the refinancing were 25 basis points (0.25%) higher at the time of execution. The results indicate that the restructuring transaction, inclusive of refinancing all three existing series' of bonds, would produce positive Net Present Value Savings ranging from 9.7% using current market rates, or 6.8% after adding 25bps to current market indications. Similarly as discussed previously, restructuring the GGUA debt to shorten the final term will result in dis-savings in the early years ranging from $340,000 to $2.08 million when compared to the existincl GGUA debt schedules. It's important to note however that the County is not beholden to the prior term issued by GGUA, and should evaluate the transaction from the standpoint of the Utility's own ability to service the additional debt over this shorter term. To that point, please review schedule 2 and 3 on the following pages which aggregate the County's total annual debt commitments after acquisition of the GGUA. A summary of the results of the analysis is also provided in Table 1 below. We look forward to continuing the dialogue with the County and refining the plan of finance based on market conditions at the time of acquisition. Please contact us should you have any questions or desire any additional analysis. PfM TABLE 1: REFINANCING RESULTS October 19, 2017 Page 2 of 4 collier county Acquisition OT volaen vate ututtybystem - upaatea Market .. -t Structure Refinance / Defease GGU Debt (todays rates) Refunded Series' Series 2010, Series 2012, Series 2015 rinancling rlan Current Market +25 Refinance / Defease GGU Debt (today's rates +25 bps) Series 2010, Series 2012, Series 2015 Dated / Delivery Date December 20, 2017 December 20, 2017 Total GGU Par Amount (Refinanced) 41,040,000 41,090,000 Total Aggregated Par Amount (GGU + County Senior Debt) 109,969,968 110,019,968 True Interest Cost (%) 2.30% 2.55% Net Debt Service Reserve De os it 2,3 1,491,143 1,541,794 Aggregate Average Annual Debt Service 8,169,051 8,209,571 Aggregate Ma)amum Annual Debt Senice 10,662,700 10,716,723 Net Revenues of the County WSD (2016 CAFR)4 40,982,058 40,982,058 Debt Service Coverage (125% Required) Final Maturity 384% July 1, 20291July 382% 1, 2029 (1) Assumes that cash is used to detease portions of L31JU aebt (2) Golden Gate Utility's Series 2010 Bonds have a cash reserve of $631,500 that can be contributed to the County's reserve i (3) All reserve deposits w ill be funded by bond proceeds (4) Net Revenues in calculation do not include impact fees of approximately $13.6M in FY 2016. 2018 ($340,000) ($385,000) 2019-2022 (880, 000) (950, 000) 2023-2028 (2,080,000) (2,145, 000) 2029 (700, 000) (750, 000) 2030-2035 2,765,000 2,765,000 2036-2040 1,480,000 1,480,000 Total Gross Savings ($ 8,690,000 7,960,000 Net Present Value Savings $ 3,397,0001 2,375,000 Net Present Value Savinqs (%) 9.72%1 6.80% ri7 0 It M t- M M f- O r N Ln N M O O O O O O O M O (n CO W W N LO r't C) w m w a a 0 0 C) 0 C) � M r M M O 14, N 'T M W L[) L1) O O w L1) O LC) 00 N _ a U LC') M N O CA f-- CO � CO CM In 0 Oi M M N Ll) O O M w M O O lq:r m't (O C N C7 CM N f- f-- 00 M co N 00 00 N CO O LO LO 'T -'T � � � � 4 N O O O O O G L(•) Llj Ln (M N 7 M 1" f` r- f` 1-: 1- O U) N N N N r T T r r r r r LL) a) N Q ) CO a� H � Y N 00 N O N O CO -t O N co CO N (O CO CO M N (O O O LO T 00 M 00 � CO (O O f� T 00 r M + p O' C 00 - Ln O r m r f- r N V- O CO (O O O O M� N W M N G1 p C r r- N N ti f- r- N CO O lC) (A N NC) O O O 00 CO 00 00 CO LO V N CO NC J r r r r m N U 7 O h m fl- 00 Ln O 0 O LO 0 0 0 0 0 0 0 0 0 LO T IT O IT fl- fl T f,- N W O O O O O O O O O (0 ` (U O (O r ti IT M U') CO Ln '-T O 0 r- 0 0 0 LO Ln O LO 0) 1 M 1I W M 1 (A f- N C� CA CO -f N CA CA CM NI�i CO r N r Ln r O O r 0 0 (O It IT Iq CM LO O O O O O O It Iq"t r T r T V O N C/i N cri O O O O r` f- r- r- P- r- O f- t� r- r` f- i- P. 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";I V V V V V V V V V O U c 1` 1` N N N N N N N N N (V (V P--1- 1- 1` 1`00 CO _ 0 a) 0 co ({} O N � C d N 00 co N M N M r O r V 00 f� LO c •cr T O CA O O O O3 M M O N J M M M Y N N N N tt O � a) m N N r- � CA M c O � O T O3 O r- M 000 N J T T T T Ld Y m c C � a) m U) 00 � Cl M M M M M M N N N N N N N N N N M M M M t O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N N r r r T T T T T T T T T T T T T r r T T T T T ti r.- 1` 1` 1` t- 1` 1` ti 2016 FLORIDA GOVERNMENTAL UTILITY AUTHORITY For the Fiscal Year Ended September 30 Annual Financial ReportCOMPREHENSIVE FLORIDA GOVERNMENTAL UTILITY AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Prepared by: Finance Department David DiLena, CPA, Chief Financial Officer FLORIDA GOVERNMENTAL UTILITY AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 - i - TABLE OF CONTENTS Page Number(s) INTRODUCTORY SECTION Letter of Transmittal 1 − 25 Certificate of Achievement for Excellence in Financial Reporting 26 Organization Chart 27 List of Principal Officials 28 FINANCIAL SECTION Independent Auditors’ Report 29 − 30 Management’s Discussion and Analysis 31 − 43 Basic Financial Statements Statement of Net Position 44 − 45 Statement of Revenues, Expenditures, and Changes in Net Position 46 − 47 Statement of Cash Flows 48 − 49 Notes to Financial Statements 50 − 68 STATISTICAL SECTION Net Position by Component 70 Changes in Net Position 71 Summary of Ten Largest Single Water Users 72 Ratios of Outstanding Debt by Fund Type 73 Pledged Revenue Coverage 74 − 75 Demographic and Economic Statistics 76 − 77 Principal Employers 78 Operating Indicators by Function 79 Capital Asset Statistics by Function 80 − 82 OTHER REPORTS Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 83 − 84 Introductory SectionTAB1 - 1 - March 10, 2017 Chairman and Members, Board of Directors Florida Governmental Utility Authority 1500 Mahan Drive, Suite 250 Tallahassee, FL 32308 Florida State law requires that all units of local government publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, the Comprehensive Annual Financial Report of the Florida Governmental Utility Authority (FGUA) for the fiscal year ended September 30, 2016 is hereby submitted. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the management of the FGUA. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the FGUA. All disclosures necessary to enable the reader to gain an understanding of the FGUA’s financial activities have been included. The Florida Governmental Utility Authority’s financial statements have been audited by James Moore & Co. P.L., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Florida Governmental Utility Authority for the fiscal year ended September 30, 2016, are free of material misstatement. The independent audit involved examining on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based on the audit, that there was a reasonable basis for rendering an unqualified (“clean”) opinion that the Florida Governmental Utility Authority’s financial statements for the Fiscal Year ended September 30, 2016, are fairly presented in conformance with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Florida Governmental Utility Authority’s MD&A can be found immediately following the report of the independent auditors. FGUA Operations Office Government Services Group, Inc. 280 Wekiva Springs Rd., Ste 2070 Longwood, FL 32779-6026 (877) 552-3482 Toll Free (407) 629-6900 Tel (407) 629-6963 Fax - 2 - Profile of the Government The FGUA exists as a legal entity and public body pursuant to Chapters 125, 163 and 166, Florida Statutes, and a First Amended and Restated Interlocal Agreement dated as of December 1, 2000, as restated, amended and supplemented from time to time (the “Interlocal Agreement”) by and among Citrus County, Nassau County, Polk County and Sarasota County, each a local government located in the State of Florida. Sarasota County and Nassau County have since terminated their membership in the Authority. Osceola County joined as a member in 2003 and has since terminated its membership in the Authority. Lee County joined as a member on October 18, 2005, Pasco County joined as a member on February 27, 2008, Hendry County joined as a member on February 21, 2008, and Marion County joined as a member on November 21, 2013. The Town of Dundee joined as a member on June 12, 2007 and has since terminated membership in the Authority. Desoto County joined as a member on February 19, 2009 and terminated its membership in November 2015. Citrus County, Hendry County, Lee County, Pasco County, Polk County and Marion County are the current counties who are Members in the FGUA. The purpose of the FGUA is to enable its members to make the most efficient use of their common power to acquire, own, improve, operate, and maintain water and wastewater facilities; however, Authority membership is not a prerequisite to the acquisition of property within any particular jurisdiction. The FGUA does not have any employees. All services are provided on a contractual basis predicated on the management and operational needs of the FGUA. Overall management (including executive oversight, administration, financial management, capital planning, and construction contract supervision) is provided by Government Services Group, Inc. Daily operations, maintenance, customer service, and billing services are provided by US Water/Wade Trim, with the exception of services at MacDill AFB Utility System which are provided by US Water Services Corporation. The FGUA began its operational and fiscal activities on the date of acquisition of five water and wastewater systems on April 15, 1999. These systems were acquired from Florida Cities Water Company and Poinciana Utilities, Inc., units of Avatar Properties, Inc. A sixth system located in Lee County was part of the acquisition discussions, but was directly purchased by Lee County on April 15, 1999. The Barefoot Bay Utility System was transferred to Brevard County in February 2000. The Sarasota Utility System was transferred to Sarasota County on August 8, 2002. On December 5, 2003, the FGUA completed the purchase of two additional utility systems from Florida Water Services Corporation, the Citrus County Utility System and the Lehigh Acres Utility System (Lee County). On March 31, 2004, the FGUA sold its Carrollwood Utility System water production wells to the Tampa Bay Water Authority and its water distribution system and wastewater collection system to Hillsborough County, ending its ownership in the Carrollwood Utility System. Continuing with the FGUA’s purpose to transition utility activities from the private sector to public ownership and operation, the Citrus Utility System was transitioned to Citrus County on February 15, 2007. Shortly thereafter, on April 30, 2007, the Poinciana Utility System was transitioned to the Tohopekaliga Water Authority. On February 27, 2009, the FGUA purchased the Aloha Utilities Inc. water and wastewater systems (Aloha Gardens and Seven Springs), collectively called the FGUA Pasco Utility Systems. On December 23, 2009, the FGUA acquired the Consolidated Utility Systems. On March 10, 2010, the FGUA acquired the Lindrick Utility System and on July 29, 2010, the FGUA acquired the North Fort Myers Utility System. On June 17, 2010, the Authority accepted and approved a contract with the United States Government for the acquisition of the water and wastewater utility facilities at MacDill Air Force Base (AFB). The effective date of this acquisition was March 1, 2011, after the transition period which ended February 28, 2011. On June 28, 2012, the FGUA acquired the Mad Hatter and Paradise Lakes Utility Systems which are located in Pasco County, and combined them into the FGUA’s Consolidated Utility Systems enterprise - 3 - fund. On March 28, 2013, the FGUA acquired certain water and wastewater utility assets owned by Aqua Utilities Florida, Inc. and Crystal River Utilities, Inc. located in Pasco, Lake, Alachua, Citrus, Hardee, Lee, Marion, Orange, Polk, Seminole, Volusia and Putnam Counties, Florida. These system were separated into three separate enterprise funds; Lake Aqua Utility System, Pasco Aqua Utility System, and Unified Aqua Utility System. As of September 30, 2016, the FGUA consisted of ten separate water and wastewater systems located in fourteen counties in Florida. Each of the systems is accounted for as a separate enterprise fund of the FGUA. One enterprise fund continues to be maintained for the Barefoot Bay System to account for the Revenue Bond Payable used to acquire the system and Revenue Bond Receivable used by Brevard County to pay for their purchase of the system from the FGUA. There is also a Non-System Specific enterprise fund for the other minor contractual services provided by the FGUA. GOLDEN GATE UTILITY SYSTEM SERVICE AREA Golden Gate is located north and east of I-75 between the Golden Gate main canal and CR 951, approximately four miles east of the City of Naples in western Collier County. Golden Gate occupies just more than four square miles of developed urban residential and light-commercial property. The majority of properties are single-family residential. Commercial development consists of support services to the surrounding residents. The Collier County Water-Sewer District surrounds the Golden Gate system on all sides. Approximately half of Golden Gate is served with public water service, while less than half of Golden Gate is served by central sewer. Those residents who are currently not connected use private wells and septic tanks. The oldest water and sewer lines were installed in 1964. Half of the southeast quarter of Golden Gate is comprised of a golf course, to which water and sewer service is provided and on which a water treatment plant is located. The remaining area in the southeast quarter is served with water and sewer. The FGUA continues to expand the water service area since additional water treatment capacity is available. SYSTEM OPERATIONS Water Treatment The original water plant, constructed in 1965 and 1966, was a metal lime-softening treatment plant. This facility was expanded in 1989 to a lime-softening plant capacity of 1.224 MGD. In July 2000, a 0.25-MGD reverse osmosis (RO) system was put on line at the existing water treatment plant site. In 2004, a 0.250 MGD - RO system was put on line for a total treatment capacity of 1.70 MGD. In 2006 a phase 3 - RO system of 0.300 MGD was put on line. In 2009 TUB was converted from a 0.504 MGD lime softening unit into a raw water blend. The total production capacity of the Golden Gate system is now 2.099 MGD (0.720 MGD lime softening, 0.504 MGD raw blend and 0.875 MGD RO). All WTP expansion is contingent upon system growth. - 4 - As shown in Table 1, plant flows averaged 1.516 MGD in fiscal year 2016 – 72% of the plant capacity Table1 – Golden Gate Water Treatment Plant Flows WTP Permitted Capacity (MGD) Average Daily Flow (MGD) % Capacity Golden Gate – WUP Limit (Water Table Aquifer) Golden Gate – Treatment Capacity 2.060 2.099 1.772 (raw) 1.516 86% 72% Wastewater Treatment The wastewater treatment plant, which is located next to the Golden Gate canal, is a 1.50 MGD annual average daily flow conventional activated sludge domestic WWTP with effluent disposal to on-site percolation ponds and a deep injection well. The original plant was constructed in 1966 with a capacity of 0.3 MGD and was upgraded to 0.4 MGD in the 1980s and then again in 1995 to 0.95 MGD and in 2009 to its current capacity of 1.50 MGD AADF & 1.80 MGD TMADF. The annual average daily flow was 1.104 MGD in fiscal year 2016 – 74% of the plant capacity. The permit to operate the DIW was issued in fiscal year 2012. The DIW and associated dedicated RO brine concentrate line are currently in service. The RO brine concentrate bypasses the WWTP and is sent directly down the DIW. Table 2 – Golden Gate Wastewater Treatment Plant Flows WWTP Permitted Capacity (MGD) TMADF Three Month ADF (MGD) Permitted Capacity (MGD) AADF Average Daily Flow (MGD) % Capacity Totals 1.80 1.368 1.50 1.104 74% The utility system served a total of 3,684 water customers and 2,297 wastewater customers in fiscal year 2016. LEHIGH ACRES UTILITY SYSTEM SERVICE AREA Lehigh Acres is in the eastern portion of Lee County, Florida, located east of State Road 82 and south of State Road 80. Fort Myers is the largest population center located due west of Lehigh Acres. Lehigh Acres occupies approximately 94.9 square miles of developed residential and light commercial property. The majority of properties are zoned single family residential. Duplex residential and light commercial properties are located along the main roadways. Originally designed as a retirement community, Lehigh Acres has grown in population to over 86,784 full and seasonal residents according to the 2010 US Census. Less than 50 percent of Lehigh Acres is served by public water service, with 38 percent served by central wastewater service. The Florida - 5 - Governmental Utility Authority has utility service primarily along three major roadway corridors, Lee Boulevard running east and west, Homestead Road running southwest and Joel Boulevard running north and south. Both old and new planned neighborhoods are scattered along these roadways and typically have water and wastewater service. SYSTEM OPERATIONS Water Treatment The FGUA operates one (1) 3.10 MGD lime softening water treatment plant (WTP No. 1) that includes thirteen (13) raw water wells that supply all water to the Lehigh Acres Utility System. This supply can be supplemented if needed by an interconnect with the City of Fort Myers. There are two (2) onsite storage tanks, one (1) 1.0 million gallon and one (1) 0.5 million gallon ground storage tanks and two (2) offsite storage tanks including one (1) elevated tank with a capacity of 0.25 million gallons and one (1) ground storage tank with a capacity of 0.5 million gallons. Due to high levels of total dissolved solids from the wells associated with WTP No. 2 FGUA completed the conversion of WTP No. 2 to a Booster Station in FY 2013. WTP No. 2 includes a 2.0 MG onsite storage tank. WTP No. 2 now receives all water from WTP No. 1, Chlorine and Ammonia residuals are adjusted at WTP No. 2 to ensure adequate treatment is provided for the water that is sent to the Southern portion of the Lehigh Acres service area. Eventually when growth resumes in Lehigh Acres, WTP No. 2 will be modified to include Reverse Osmosis Treatment. Plans call for WTP No. 2 to eventually be expanded to 10.0 MGD and will provide for all future growth in Lehigh Acres. For the time being until growth resumes WTP No. 2 will be operated as a booster station. Table 3– Lehigh Acres Water Treatment Plant Flows Permitted Capacity (MGD) Average Daily Flow (MGD) % Capacity WUP Limit Treatment Capacity 3.150 3.100 2.249 2.249 71% 73% Conversion of WTP No. 2 to a booster station was completed in fiscal year 2013 and the permitted treatment capacity was reduced from 4.10 to 3.10 MGD. This treatment capacity can be supplemented if needed via the City of Fort Myers interconnect. Wastewater Treatment The FGUA operates one wastewater treatment plant (WWTP) with a permitted capacity of 3.0 MGD AADF & 4.30 MGD TMADF. The WWTP also includes a deep injection well (DIW) with a permitted disposal capacity of 18.6 MGD which will allow for all future expansions of the WWTP. The plant is comprised of two (2) separate plants which include contact stabilization and activated sludge process plants. The Zenon membrane plant was demolished during FY 2015 as part of the Headworks Capital Improvement Project. The WWTP produces public access quality reclaimed water that is used for irrigation on three area golf courses. During periods of wet weather the effluent is diverted to extensive onsite ponds for storage, percolation and evaporation. The DIW is also used for effluent disposal during wet weather. - 6 - Table 4– Lehigh Acres Wastewater Treatment Plant Flows Permitted Capacity (MGD) TMADF Three Month ADF (MGD) Permitted Capacity (MGD) AADF Average Daily Flow (MGD) % Capacity AADF WWTP 4.30 2.392 3.00 2.16 72% The customer service center provided utility billing and other services to 12,643 water customers and 10,421 wastewater customers in 2016. PASCO UTILITY SYSTEM – ALOHA GARDENS & SEVEN SPRINGS SERVICE AREA The physical facilities of the Pasco Utility System are located in two distinct service areas, the Aloha Gardens service area and the Seven Springs service area. The Pasco Utility systems are located in Pasco County, immediately north of Pinellas and Hillsborough Counties, with the Aloha Gardens service area west of U.S. Highway 19 and the Seven Springs service area to the east of U.S. Highway 19. The Aloha Gardens water system consists of three water treatment plants, plants 1, 3 and 8; although at present only WTP No. 8 is in service. The Aloha Gardens system receives additional water purchased from Pasco County through three interconnects with the County Utility system. Wastewater from the Aloha Gardens service area is sent to Pasco County for treatment through a bulk service agreement. Since the Aloha Gardens service area is built out, the agreement is sufficient for future wastewater treatment needs of this area. The Seven Springs water system consists of one centralized WTP with a permitted treatment capacity of 2.90 MGD and includes 7 permitted wells. The Seven Springs water system is also interconnected with Pasco County and is required to purchase all water needed above the 2.289 MGD AADF WUP limitation. The Seven Springs wastewater treatment plant is permitted at 2.50 MGD and is currently operating within its permitted capacity. Aloha Gardens Water Treatment The Aloha Gardens water system consists of one active WTP (#8). The Aloha Gardens system receives additional water purchased from Pasco County through three interconnects with the County Utility system. As shown in Table 5, Aloha Gardens flows averaged 0.424 MGD in FY 2016. The majority of water used in the Aloha Gardens service area was purchased from Pasco County due to water quality issues with the existing wells. . - 7 - Table 5– Aloha Gardens Water Treatment Plant Flows WTP No. 8 Permitted Capacity (MGD) Average Daily Flow (MGD) % Capacity Aloha Gardens WUP Purchased Water (Pasco Interconnect) 0.136 N/A 0.070 0.354 0.424 51% N/A Aloha Gardens Wastewater Treatment All wastewater from the Aloha Gardens service area is sent to Pasco County for treatment through a bulk service agreement. Seven Springs Water Treatment The Seven Springs water system previously consisted of seven small water treatment plants. In FY 2011 the Centralized Mitchell Rd. WTP, Pasco County Interconnect, and Raw Water Transmission Main projects were completed. The system is now served by the centralized Mitchell Rd. WTP with additional water beyond the 2.289 MGD AADF WUP limitation being purchased from Pasco County. During fiscal year 2014 the Seven Springs WUP withdrawal limit was increased from 2.04 to 2.289 MGD AADF. As shown in Table 6, the Seven Springs utility system averaged 2.609 MGD in 2016. FGUA maximized use of its withdrawal capacity and utilized the interconnects with Pasco County for all additional flows beyond its WUP limit. Table 6 – Seven Springs Water Treatment Plant Flows WTP Permitted Capacity (MGD) Average Daily Flow (MGD) % Capacity Permitted Raw Water Withdrawal Purchased Water (Pasco Interconnect) 2.289 N/A 2.388 0.221 2.609 104% N/A Seven Springs Wastewater Treatment The wastewater treatment plant is a 2.5 million gallon per day (MGD), annual average daily flow (AADF), Type I modified conventional activated sludge domestic wastewater treatment facility consisting of: one mechanical screening and grit removal both with manual bypass, one splitter box, and one equalization tank of 500,000 gallons total volume. After the equalization tank, flow is split into three trains. The existing Train 3 consists of two aeration tanks of 227,000 gallons total volume, one clarifier of 105,500 gallons total volume and 1,531 square feet total square area. Trains 1 and 2 from the newly constructed plant consists of one aeration basin of 650,000 gallons each for a total of 1.3 million gallons (MG) total volume, three clarifiers of 191,000 gallons each and surface area of 1963 square feet each for a total of 573,000 gallons and 5,889 square feet total surface area. - 8 - Combined flow from Trains 1, 2, and 3 is routed into an intermediate pumping station and from there to the one seven-cell declining rate filter of 3.4 MG and one automatic backwash filter of 4.1 MG. Both filters have a total capacity of 7.5 MG. From the filters, effluent flows via gravity to the two-bay, baffled chlorine contact chamber of 47,752 gallons total with each bay for a total volume of 95,505 gallons. After disinfection, effluent flows by gravity either to the reuse pumping station or to the reject holding tank or to the North Part IV pond, depending on its quality. Part III effluent flows to the reuse pumping station for distribution throughout the Seven Springs Service Area. Non-Part III effluent flows to the lined reject pond of 1.6 MG and/or to the reject holding tanks of 0.7 MG total volume for a total reject volume of 2.3 MG. Waste Activated Sludge (WAS) flows to seven biosolids holding tanks for a total volume of 1.195 MG. Chlorination is provided by a liquid chlorine feed system with an existing gaseous chlorine system to serve as back-up. Two power generation units are provided which together are of sufficient capacity to supply emergency power to all essential plant units as required for Class I Reliability. The annual average daily flow was 1.573 MGD in fiscal year 2016. Current flows are within the plant’s permitted capacity of 2.50 MGD. Table 7 – Seven Springs Wastewater Treatment Plant Flows WWTP Permitted Capacity (MGD) Average Daily Flow (MGD) % Capacity Totals 2.5 1.573 63% The Pasco Utility System served a total of 18,069 water customers and 15,328 wastewater customers in fiscal year 2016. CONSOLIDATED UTILITY SYSTEM SERVICE AREA The Consolidated Utility System was originally comprised of 6 small service areas: Anclote, Angus Valley, Colonial Manor, Dixie Groves, Virginia City and Westwood. The Mad Hatter and Paradise Lakes Utility systems were acquired on May 17, 2012 and were combined with the Consolidated Utility Systems. The Consolidated Utility System is now comprised of 13 small service areas and includes the areas previously mentioned above as well as: Carpenter’s Run, Cypress Cove, Foxwood Lakes, Linda Lakes, Paradise Lakes, Turtle Lakes and Twin Palms. Anclote The Anclote water system is located in Pasco County, approximately 3 miles north of Tarpon Springs, approximately ½ mile south of the Pinellas/Pasco line, west of US Highway 19. The service area encompasses approximately 964 acres, extending both in Pasco and Pinellas Counties. The system consists of single and multi-family homes, mobile home parks, light commercial shops and public schools. Treatment - All water is purchased from the city of Tarpon Springs. - 9 - Angus Valley The Angus Valley water system is located approximately 23 miles east of New Port Richey on SR 54, ½ mile west of I-75 in the Angus Valley subdivision approximately 1.3 miles west of Wesley Chapel on Dayflower Boulevard west of Old Pasco Rd and ½ mile north of SR 54. Treatment - Water is withdrawn from two (2) production wells in the Floridian Aquifer. There are two (2) hydropneumatic tanks both with capacities of 5,000 gallons. Chlorine is injected for disinfection. Colonial Manor The Colonial Manor water system is located in Pasco County, approximately 1 mile southwest of the city of Elfers, ½ mile east of US Highway 19, in the subdivision off of Mogg Rd. The service area encompasses approximately 162.4 acres consisting of residential, light commercial and office spaces. Treatment - All water is purchased from Pasco County. Dixie Groves The Dixie Groves water system is located in Holiday which is in the western portion of Pasco County, 3 miles south of New Port Richey, and one mile east of the intersection of US Highway 19 and County Rd. 595. The service area encompasses approximately 42 acres consisting of residential, light commercial and office spaces. Treatment - Water is withdrawn from two (2) production wells in the Floridian Aquifer. There are two (2) hydropneumatic tanks with capacities of 1,500 and 3,000 gallons. Chlorine is injected for disinfection. Virginia City The Virginia City water system is located in New Port Richey, on Thys Road, in Pasco County, approximately 2.5 miles east of US Highway 19 on the north side of SR 54. Treatment – Water is withdrawn from one (1) production well in the Floridian Aquifer. There is one (1) hydropneumatic tank with a capacity of 5,000 gallons. Chlorine and Ammonia are injected for disinfection via chloramination. Westwood The Westwood water system is located in southwestern Pasco County, north of Tarpon Springs, ½ mile west of US Highway 19. The Westwood service area encompasses approximately 182 acres. The system consists of mostly single family residential units. Treatment - Water is withdrawn from one (1) production well in the Floridian Aquifer. There is one (1) hydropneumatic tank with a capacity of 10,000 gallons. Chlorine is injected for disinfection. There is also an emergency interconnect with Pasco County Utilities. Prior to utilization of the interconnect all Westwood customers are notified and the well is inactivated due to Pasco County Utilities utilizing chloramination for disinfection. - 10 - Mad Hatter Utility Systems The Mad Hatter utility systems are located along State Road 54 (SR 54) near the intersection of US 41 in the south-central portion of Pasco County, Florida. The Mad Hatter systems are summarized below. Carpenters Run Treatment - The Carpenter’s Run WTP consists of two water supply wells, two (2) 10,000 gallon hydropneumatic tanks, a diesel drive back up for one (1) of the wells, and a gas chlorination system for disinfection. All Mad Hatter water systems with the exception of Paradise Lakes and Linda Lakes are permitted as a basin under Water Use Permit No. 590.011 for 1.0 MGD annual average daily flow. All wastewater is sent to Pasco County via an interconnect for treatment. Cypress Cove Treatment - The Cypress Cove WTP consists of two (2) water supply wells, a gas chlorination system for disinfection, a polyphosphate chemical system, and two (2) 10,000 gallon hydropneumatic tanks. All Mad Hatter water systems with the exception of Paradise Lakes and Linda Lakes are permitted as a basin under Water Use Permit No. 590.011 for 1.0 MGD annual average daily flow. All wastewater is sent to Pasco County via an interconnect for treatment. Foxwood Lakes Treatment - The Foxwood Lakes WTP consists of one water supply well with a diesel engine drive back up, a gas chlorination system for disinfection, one (1) 10,000 gallon hydropneumatic tank. All Mad Hatter water systems with the exception of Paradise Lakes and Linda Lakes are permitted as a basin under Water Use Permit No. 590.011 for 1.0 MGD annual average daily flow. All wastewater is sent to Pasco County via an interconnect for treatment. Linda Lakes Treatment - The Linda Lakes WTP consists of one water supply well, treatment via liquid chlorine, and one (1) 5,000 gallon hydropneumatic tank. Due to the small size of this well a Water Use Permit is not required. This system is not part of Water Use Permit No. 590.011 The Linda Lakes service area also includes a small WWTP permitted to treat 20,000 gallons per day. The WWTP consists of a mechanical bar screen and grit removal system, four aeration basins, clarifier, chlorine contact chamber, digester and rapid infiltration basin. Paradise Lakes Treatment - The Paradise Lakes WTP consists of two wells, a 10,000 gallon hydropneumatic tank, a gas chlorination system for disinfection and an 8kW propane generator. This system is permitted for 77,000 annual average daily under Water Use Permit No. 6223. All wastewater is sent to Pasco County via an interconnect for treatment. - 11 - Turtle Lakes Treatment - The Turtle Lakes WTP consists of two water supply wells, gas chlorination system for disinfection, and one (1) 20,000 gallon hydropneumatic tank. All Mad Hatter water systems with the exception of Paradise Lakes and Linda Lakes are permitted as a basin under Water Use Permit No. 590.011 for 1.0 MGD annual average daily flow. All wastewater is sent to Pasco County via an interconnect for treatment. Twin Palms Treatment - Abandonment of the Twin Palms water supply well was completed in FY 2015. This well was abandoned due to sand intrusion. Water is no longer produced at this site. Twin Palms receives it water supply from the Carpenters Run and Turtle Lakes WTPs. All wastewater is sent to Pasco County via an interconnect for treatment. SYSTEM OPERATIONS As shown in Table 8, all Consolidated System plant flows were under capacity leaving room for growth if needed. Table 8 – Consolidated System Flows WTP Permitted Capacity (MGD) Average Daily Flow (MGD) % Capacity Anclote (Water purchased from Tarpon Springs) Angus Valley (2 wells) – WUP Limit Colonial Manor (Water purchased from Pasco) Dixie Groves (2 wells) – WUP Limit Virginia City (1 well and interconnect) – WUP Limit Westwood (1 well and Interconnect) – WUP Limit Carpenters Run * Cypress Cove * Foxwood Lakes * Turtle Lakes * Paradise Lakes – WUP Limit Linda Lakes N/A 0.145 N/A 0.0536 0.083 0.029 1.000 0.077 N/A 0.054 0.114 0.095 0.034 0.057 0.015 0.515 0.159 0.000 0.175 0.053 0.012 N/A 79% N/A 63% 69% 52% 85% 69% N/A * These systems are combined and Permitted as a basin under the WUP. WWTP Permitted Capacity (MGD) TMADF Three Month Average Daily Flow (MGD) Average Daily Flow (MGD) % Capacity TMADF Totals 0.020 0.037 0.020 185% The Consolidated Utility System served a total of 6,474 water customers and 3,337 wastewater customers in fiscal year 2016. - 12 - LINDRICK UTILITY SYSTEM SERVICE AREA The Lindrick service area is comprised of approximately 3.24 square miles and consists of a population of approximately 4,600 people. The majority of the Lindrick service area is located west of US-19 on Florida’s Gulf of Mexico coastline. Lindrick’s water supply comes from the Floridan Aquifer. The water system serves its customers with eight permitted supply wells under Southwest Florida Water Management District (SWFWMD) water use permit number 2978.013. The majority of customers served are residential. Flows from the 19 lift stations in the Lindrick wastewater collection system are sent to the City of New Port Richey wastewater treatment plant under a bulk wastewater service agreement. The current agreement is in effect until July 1, 2021, and allows up to 700,000 gallons per day of treatment capacity. Under the terms of the agreement with the City of New Port Richey, the Lindrick system must maintain the chloride levels below 600 mg/l and use its best efforts to achieve chloride levels of 400 mg/l. Chloride levels in the Lindrick wastewater system fluctuated between 317 milligrams per liter (mg/L) and 1,542 mg/L during FY 2016. In FY 2011 FGUA initiated a project to identify problem areas in the collection system and then to rehabilitate any pipes or facilities that might contribute to brackish ground water or salt water introduction into the collection system. This project was completed in FY 2014 / FY2015 and the chloride levels were 455 mg/L and 432 mg/L in 2014 and 2015, respectively. However, in FY 2016 chloride levels have begun to increase again and chloride levels averaged 736 mg/L which exceeded the agreement limits with the city of New Port Richey. FGUA initiated additional collection system repairs along Leeward Way, of which repairs carried forward into FY 2017. Due to the proximity of the Lindrick system with the Gulf of Mexico this issue will likely continue for the length of the agreement with the city of New Port Richey. Water Treatment The Lindrick system organized in 1960 to serve the Gulf Harbor Development and was acquired by the Lindrick Service Corporation in 1965. In November 2002 Lindrick Service Corporation began purchasing water from Pasco Reserve Corp. to supplement its water supply. Subsequently on November 9, 2009 ownership of the Lindrick Utility System and Pasco Reserve well field / transmission lines was transferred to the FGUA. The Lindrick system consists of six (6) permitted production wells (No. 2, 3, 4, 5, 6, 8). Wells No. 1 and 7 are currently out of service. Well No. 1 includes a 10,000 gallon hydropneumatic tank, Well No. 4 includes a 6,000 gallon hydropneumatic tank, and Well No. 5 includes a 5,000 gallon hydropneumatic tank. Water from all wells is conveyed to a centralized treatment system located at Well No. 1. Ammonium Sulfate and Liquid Chlorine is injected for disinfection. As shown in Table 9, plant flows averaged 0.569 MGD in fiscal year 2016 – 65% of the permitted raw water withdrawals. - 13 - Table 9 – Lindrick Water Treatment Plant Flows WTP Permitted Capacity (MGD) Average Daily Flow (MGD) % Capacity Lindrick WTPs – WUP Limit Lindrick WTPs – Treatment Capacity 0.870 1.944 0.566 0.566 65% 29% Wastewater Treatment The Lindrick wastewater collection system serves a population of approximately 4,600 people and consists of approximately 550 manholes, 137,500 feet of gravity sewer and nineteen (19) lift stations. Lift station No. 17 is a triplex station with three pumps and all other stations are dual pump submersible type. The wastewater from the Lindrick area is pumped to the old Lindrick WWTP which has been converted to a “Master Lift Station” (No. 17). From the master lift station it is sent to the City of New Port Richey WWTP for treatment and disposal under a Bulk Wastewater Treatment Agreement which allows up to 700,000 GPD of treatment capacity. The bulk wastewater agreement was reduced from 850,000 GPD to the current 700,000 GPD in fiscal year 2013. The current ADF being sent to the City of New Port Richey is within the Bulk Wastewater Treatment Agreement and should provide enough capacity into the 10 year planning period. Table 10 – Lindrick Wastewater Collection System Flows WWTP Bulk Service Agreement (MGD) Average Daily Flow (MGD) % Capacity Totals 0.700 0.466 67% The Lindrick Utility System served a total of 3,089 water customers and 2,586 wastewater customers in FY 2016. NORTH FORT MYERS UTILITY SYSTEM SERVICE AREA The North Fort Myers service area was initially organized by North Fort Myers Utility, Inc. on January 23, 1978, to provide central sewer service to Old Bridge Park, a mobile home community. Since then it has expanded its service area to include a large portion of the unincorporated area north of the Caloosahatchee River in Lee County, FL. On June 17, 2010, North Fort Myers Utility, Inc. sold the North Fort Myers Utility system to the Florida Governmental Utility Authority. The service area also includes two small water systems, Pine Lakes and Lake Fairways both located in Lee County, in North Fort Myers, at 10200 Pine Lakes Boulevard and 19371 North Tamiami Trail, respectively. The water distribution system is comprised of approximately 128,175 LF of 2” through 8” water mains serving approximately 1,841 residential units. Both communities are built out and future development or expansion is not expected. - 14 - SYSTEM OPERATIONS Water Treatment The water distribution system consists of two separate systems: Pine Lakes and Lake Fairways. Both Pine Lakes and Lake Fairways systems are built out with no future development expected. The Pine Lakes water system is supplied by Lee County through a master meter. The master meter is located on U.S. 41. The Lake Fairways water system consists of two production wells in the Mid Hawthorn Aquifer which send the raw water to a centralized water treatment plant located inside the community. Raw water is sent to a tray aeration unit mounted on the roof of the ground storage tank which removes hydrogen sulfide and small amounts of ferrous iron. Liquid chlorine is used for disinfection. Treated water is stored in two (2) storage tanks located at the treatment plant. There is a 200,000 gallon concrete ground storage tank and a 7,500 gallon hydropneumatic tank. The Lake Fairways WTP current WUP limit is 37 MG annually (0.101 MGD). During fiscal year 2016, 30.295 MG (0.083 MGD) was withdrawn from the aquifer which is within the WUP limit. As shown in Table 11, plant flows averaged 0.083 MGD in 2016 – 82% of the plants permitted water use capacity. Table 11 – North Fort Myers Water Treatment Plant Flows WTP Permitted Capacity (MGD) Average Daily Flow (MGD) % Capacity Lake Fairways – WUP limit Lake Fairways – Treatment Capacity 0.101 0.200 0.083 0.083 82% 42% Wastewater Treatment The North Fort Myers system is served by two separate collection and treatment facilities, the Del Prado WWTP and the Lake Fairways WWTP. The Del Prado WWTP is located in Northern Lee County in North Fort Myers, at 4100 Del Prado Boulevard, approximately 1.6 miles east of Tamiami Trail (US 41) and serves approximately 42,000 people. The treatment plant was recently expanded to 4.25 MGD annual average daily flow and 4.80 MGD three month average daily flow. The plant is an extended aeration process domestic wastewater treatment facility and includes an influent mechanical screen, a by-pass bar screen, grit removal system, two EQ tanks, two oxidation ditches, two clarifiers, a chemical feed system, two traveling bridge filters, a chlorine contact chamber, a reject chlorine contact chamber, two digesters, a rotary drum thickener with polymer feed system, a lime silo, two sludge holding tanks and a 1.0 MG reuse storage tank. There is also a 4.87 MGD deep injection well located at the WWTP. The Lake Fairways WWTP is an extended aeration process domestic WWTP with a permitted capacity of 0.300 MGD AADF. The facility consists of an influent screen, one surge tank, two aeration basins, two clarifiers, one digester and a clear well. The facility includes a public access reuse system which is used to irrigate the Pine Lakes golf course. The annual average daily flow for fiscal year 2016 was 3.665 MGD for the Del Prado WWTP. The current plant flow is within the plant’s permitted capacity of 4.25 MGD. These flows have increased as a result of the Waterway Estates interconnect coming online. The Lake Fairways WWTP is also operating well within its permitted capacity. - 15 - Table 12– North Fort Myers Wastewater Treatment Plant Flows WWTP Permitted Capacity (MGD) TMADF Three Month ADF (MGD) Permitted Capacity (MGD) AADF Average Daily Flow (MGD) % Capacity AADF Del Prado WWTP Lake Fairways WWTP 4.80 N/A 4.00 N/A 4.250 0.300 3.665 0.150 86% 50% The utility system served a total of 1,855 water customers and 11,963 wastewater customers in fiscal year 2016. MACDILL AIR FORCE BASE UTILTIY SYSTEM SERVICE AREA The MacDill Air Force Base (AFB) is located eight miles south of downtown Tampa on the Southwestern tip of the interbay Peninsula on the west coast of Florida. The AFB privatized utilities in 2011 and ownership of all water and wastewater system assets transferred to the FGUA. The FGUA now has the primary responsibility in operating and maintaining the system. The MacDill AFB water system serves a population of approximately 12,800. The MacDill AFB purchases treated water from the City of Tampa Water Department through three interconnections. The MacDill AFB water system consists of treatment facilities, water storage tanks, and the transmission/distribution system, along with associated pumps, valves and appurtenances. Flows currently average 0.762 MGD. The MacDill AFB wastewater system consists of collection facilities, lift stations, force mains, treatment facilities, an effluent disposal system and a biosolids disposal system. The wastewater treatment facility is permitted for 1.20 MGD AADF and is a conventional activated sludge system. The facility was originally constructed in 1952 and has been upgraded 6 times since 1952. The available wastewater treatment and disposal capacities for MacDill AFB are considered adequate to meet present and future demands. Flows currently average around 0.549 MGD. SYSTEM OPERATIONS MacDill AFB Water Treatment Treated water is purchased from the City of Tampa Water Department (CTWD), which utilizes the Hillsborough River as its primary water source. CTWD treatment includes coagulation, flocculation, sedimentation, pH stabilization, disinfection, fluoridation, filtration, and final disinfection with chlorine and ammonia. Water is conveyed to the AFB through three interconnects with CTWD. Each of the three interconnects is equipped with a 6 inch water meter and backflow prevention device. The water system is well designed with multiple supply points, effective system looping, and sufficient storage capacity. The system utilizes sodium hypochlorite and ammonia to boost disinfection at the AFB. As shown in Table 13, the MacDill plant flows averaged 0.762 MGD for fiscal year 2016. - 16 - Table 13 – MacDill AFB ADF WTP Permitted Capacity (MGD) Average Daily Flow (MGD) % Capacity All Water Purchased from CTWD N/A 0.762 N/A Wastewater Treatment The wastewater treatment plant is a 1.20 MGD annual average daily flow (AADF) conventional activated sludge system with mechanical bar screen, grit removal, flow equalization basin, pump station, fine bubble aeration basin, clarifiers, sand filters, chlorine contact basin and effluent pumping. Current plant flow is approximately 0.549 MGD or 46% of the total plant capacity. Treated effluent is sent to the north pond to supply two golf courses for irrigation. The golf courses include about 320 acres of land on the base. The annual average daily flow was 0.549 MGD. The current plant flow is within the plant’s permitted capacity of 1.20 MGD. Table 14 – MacDill AFB Wastewater Treatment Plant Flows WWTP Permitted Capacity (MGD) Average Daily Flow (MGD) % Capacity Totals 1.20 0.549 46% LAKE AQUA UTILITY SYSTEM SERVICE AREA FGUA currently owns and operates twenty-five (25) water treatment plants (WTPs) and seven (7) wastewater treatment facilities (WWTFs) in Lake County, Florida consisting of both residential and commercial customers. SYSTEM OPERATIONS Water Treatment The water treatment systems provide potable drinking water to approximately 5,040 customers. Most of the water systems are relatively small, with 16 of the 25 systems serving 200 connections or less. Nine of the water treatment systems serve a customer base that ranges from 200 to 400 connections. The largest system in the group (Silver Lake Estates Water Treatment Plant) has a treatment capacity of 0.629 million gallons per day (MGD). Each water treatment system utilizes one or two water supply wells, most of which are permitted by the Florida Department of Environmental Protection and have a Consumptive Use Permit (CUP) from the St. Johns River Water Management District (SJRWMD). - 17 - As shown in Table 15, all Lake System plant flows were under capacity with the exception of Haines Creek. Table 15 – Lake Aqua System Flows WTP Permitted Capacity (MGD) Average Daily Flow (MGD) % Capacity 48 Estates – Plant Design Capacity Carlton Village – WUP Limit East Lake Harris Est. – WUP Limit Fairways at Mt. Plymouth – WUP Limit Fern Terrace – WUP Limit Friendly Center Grand Terrace– WUP Limit Haines Creek– WUP Limit Hobby Hills– WUP Limit Holiday Haven - Interconnect Imperial Terrace King's Cove– WUP Limit Morningview– WUP Limit Palms MHP– WUP Limit Picciola– WUP Limit Piney Woods & Spring Lk Manor-WUP Quail Ridge– WUP Limit Ravenswood– WUP Limit Silver Lake Estates – WUP Limit Skycrest – WUP Limit Stone Mountain– WUP Limit Summit Chase– WUP Limit Valencia Terrace– WUP Limit Venetian Village– WUP Limit Western Shores – Interconnect w/ Silver Lakes Estates 0.0570 0.1175 0.0329 0.232 0.0484 N/A 0.0409 0.0061 0.0270 N/A 0.0300 0.1360 0.0134 0.0215 0.0517 0.0663 0.0274 0.0170 0.6290 0.0277 0.0137 0.0581 0.1166 0.0475 N/A 0.015 0.053 0.019 0.084 0.020 0.001 0.016 0.012 0.011 0.011 0.014 0.039 0.007 0.012 0.029 0.030 0.015 0.007 0.364 0.017 0.001 0.037 0.045 0.024 26% 45% 58% 36% 41% N/A 39% 197% 41% N/A 47% 29% 52% 56% 56% 45% 55% 41% 58% 61% 7% 64% 39% 51% N/A Wastewater Treatment The seven (7) WWTFs serve a total of 1,243 customers in Lake County. These facilities range in size from 20,000 to 80,000 gallons per day. Process treatment at each facility consists of extended aeration treatment for domestic wastewater using chlorine disinfection for final treatment prior to effluent discharge. Effluent disposal usually consists of rapid infiltration basins or permitted reuse facilities using sprayfields. - 18 - As shown in Table 16, all Lake Aqua System WWTP flows were under capacity leaving room for growth if needed. Table 16 – Lake Aqua Wastewater Treatment Plant Flows WWTP Permitted Capacity (MGD) AADF Average Daily Flow (MGD) % Capacity Fairways at Mt. Plymouth Holiday Haven King's Cove Morningview Summit Chase Valencia Terrace Venetian Village 0.075 0.025 0.055 0.020 0.054 0.080 0.036 0.034 0.014 0.026 0.005 0.018 0.029 0.026 45% 56% 47% 25% 33% 36% 72% The Lake Aqua Utility System served a total of 5,040 water customer accounts and 1,243 wastewater customer accounts as of September 30, 2016. PASCO AQUA UTILITY SYSTEM SERVICE AREA The FGUA Pasco Aqua Utility System is comprised of three potable water systems that serve approximately 3,272 connections, primarily residential. Two of these systems, Jasmine Lakes and Zephyr Shores have their own water treatment plants (WTPs) while the third system, Palm Terrace, purchases water from Pasco County Utilities and requires no additional treatment before distribution to its customers. FGUA uses both treated groundwater and purchased water to serve its customers in the Pasco Aqua Utility System. Jasmine Lakes The Jasmine Lakes Water Treatment Plant (WTP) is located at 7612 Pineapple Lane in Port Richey. Four (4) groundwater supply wells, referenced as the Oak Hill and Hickory Hill wells, provide the source of water for the Jasmine Lakes WTP. Jasmine Lakes WTP has four groundwater wells that pump water into a 500,000 gallon, concrete ground storage tank for raw water storage. The raw water is treated by chlorination after it is pumped from the ground storage tank and receives disinfection contact time in a 20,000 gallon hydropneumatic tank prior to entering the distribution system. The hydropneumatic tank does not contain air, so it is acting solely as a contact tank. The Jasmine Lakes WWTF is a Type II extended aeration domestic wastewater treatment facility located at 1000 Holly Lane in Port Richey. The WWTF has a capacity of 370,000 gallons per day (gpd) permitted on the basis of a three-month rolling average daily flow (3MRAF). It is limited to 308,000 gpd annual average daily flow (AADF) however due to limited effluent disposal. - 19 - Palm Terrace Palm Terrace Gardens is located north of the Jasmine Lakes utility system in Port Richey, and is a consecutive system that purchases all of its water from Pasco County Utilities. The Palm Terrace Gardens WWTF is located at 116 Arbordale Drive in New Port Richey, and has a permitted AADF capacity of 130,000 gallons per day (gpd). The facility is permitted in terms of annual average daily flow (AADF) and is a Type II, extended aeration domestic wastewater treatment facility. Zephyr Shores The Zephyr Shores water treatment plant is located at 35235 State Road 54 in Zephyrhills. The WTP is served by two (2) water supply wells that are located on the plant site. Zephyr Shores WTP has two wells that pump water into a hydropneumatic tank. The system was recently converted to chloramines and the emergency interconnect with Pasco County was rehabilitated. The Zephyr Shores wastewater system is a collection system only. Wastewater is sent to Pasco County Utilities for treatment. SYSTEM OPERATIONS As shown in Table 17, all Pasco Aqua System plant flows were under capacity with the exception of Zephyr Shores which was at 118% of its WUP limit. Table 17 – Pasco Aqua System Flows WTP Permitted Capacity (MGD) Average Daily Flow (MGD) % Capacity Jasmine Lakes – WUP Limit Palm Terrace - Interconnect Zephyr Shores – WUP Limit 0.318 N/A 0.028 0.212 0.132 0.033 67% N/A 118% Table 18 – Pasco Aqua Wastewater Treatment Plant Flows WWTP Permitted Capacity (MGD) AADF Average Daily Flow (MGD) % Capacity Jasmine Lakes Palm Terrace Zephyr Shores - Interconnect 0.308 0.130 N/A 0.204 0.104 N/A 66% 80% N/A The Pasco Aqua Utility System served a total of 3,272 water customer accounts and 3,106 wastewater customer accounts as of September 30, 2016. - 20 - UNIFIED AQUA UTILITY SYSTEM SERVICE AREA The FGUA owns and operates 43 water treatment systems and 12 wastewater systems located throughout various Florida counties which include Alachua, Citrus, Hardee, Lee, Marion, Orange, Polk, Putnam, Seminole, and Volusia Counties. These facilities are collectively referred to as the Unified Systems. SYSTEM OPERATIONS Water Treatment Permitted capacities for the water treatment systems range from a minimum of 21,096 gpd (Putnam County) to a maximum of 541,589 gpd (Seminole County). Twelve (12) of the water systems do not have consumptive use permits due either to the smaller size of their system or because the facility purchases water from a neighboring utility. Most of the water facilities are relatively small with 31 systems serving 200 connections or less. Seven (7) of the water treatment systems serve between 200 and 400 connections while the largest system in the group (Seminole County - Chuluota) has a permitted capacity of 0.542 million gallons per day (MGD) and serves 1,410 connections. Each water treatment system utilizes one or two water supply wells, most which are permitted by the Florida Department of Environmental Protection and have a Consumptive Use Permit (CUP) from one of the Florida Water Management Districts (WMDs). As shown in Table 19, all Unified System plant flows were under capacity with the exception of the Twin Rivers WTP which is slightly over capacity. Table 19 – Unified System Flows WTP Permitted Capacity (MGD) Average Daily Flow (MGD) % Capacity Arredondo Estates – WUP Limit Beecher's Point - Interconnect Belleair - Interconnect Belleview Hills & JA - Interconnect Belleview Hills Est. - WUP Limit Breeze Hill – WUP Limit Castle Lake Chappell Hills Chuluota– WUP Limit Fairfax Hills Gibsonia– WUP Limit Harmony Homes– WUP Limit Hawk's Point– WUP Limit Hermit's Cove/St. John's Highlands Interlachen/P.M. – WUP Limit 0.068 0.025 N/A N/A 0.092 0.054 0.167 0.065 0.540 0.100 0.075 0.023 0.042 0.130 0.056 0.032 0.009 0.045 0.017 0.050 0.007 0.012 0.006 0.426 0.012 0.035 0.010 0.019 0.030 0.030 47% 36% N/A N/A 54% 13% 7% 9% 79% 12% 47% 43% 45% 23% 54% - 21 - Jungle Den - Interconnect Kenwood North Lake Gibson– WUP Limit Marion Hills Meadows, The Ocala Oaks– WUP Limit Orange Hill & Surgar Creek– WUP Limit Palm Port – WUP Limit Peace River Pine Valley Pomona Park Ridge Meadows River Grove Rosalie Oaks Saratoga Harbor Welaka Silver Lake Oaks Tangerine– WUP Limit Tomoka View– WUP Limit Twin Rivers– WUP Limit Village Water - Interconnect West Citrus West View Woodberry Forest - Interconnect Wootens N/A 0.115 0.243 0.036 0.160 0.286 0.071 0.021 0.129 0.044 0.170 0.130 0.030 0.125 0.158 0.086 0.032 0.127 0.053 0.022 N/A 0.072 0.050 N/A 0.036 0.005 0.006 0.127 0.005 0.008 0.132 0.038 0.010 0.023 0.007 0.023 0.007 0.018 0.007 0.003 0.013 0.005 0.073 0.037 0.023 0.081 0.009 0.006 0.015 0.002 N/A 5% 52% 14% 5% 46% 54% 48% 18% 16% 14% 5% 60% 6% 2% 15% 16% 57% 70% 105% N/A 13% 12% N/A 6% Wastewater Treatment The twelve wastewater systems range in size from 12,000 to 264,000 gpd. The collections systems which serve these facilities include approximately 166,000 linear feet of gravity mains and force mains in addition to associated pump stations. Two of the wastewater systems (Lake Gibson and Beecher’s Point) pump flows to a neighboring utility for treatment and disposal. The remaining ten systems in the group have treatment facilities consisting of extended aeration process treatment for domestic wastewater using chlorine disinfection for final treatment prior to effluent discharge. Depending on the facility, effluent disposal consists of using permitted reuse facilities comprised of rapid infiltration basins, percolation ponds, holding ponds and sprayfields spray irrigation (golf course), or through an existing reclaimed water agreement (City of Oviedo). As shown in Table 20, all Unified System plant flows were under capacity with the exception of the Village Water WWTP which is slightly over capacity. - 22 - Table 20 – Unified Wastewater Treatment Plant Flows WWTP Permitted Capacity (MGD) AADF Permitted Capacity (MGD) TMADF Three Month Average Daily Flow (MGD) Average Daily Flow (MGD) % Capacity Beecher's Point Breeze Hill Chuluota Fl. Cent. Comm. Pk. ** Jungle Den Lake Gibson* Palm Port Park Manor Peace River Rosalie Oaks Silver Lake Oaks South Seas Village Water 0.014 N/A 0.150 0.095 0.021 N/A 0.030 0.015 N/A N/A 0.012 0.264 0.045 N/A 0.040 N/A N/A N/A N/A N/A N/A 0.040 0.040 N/A N/A 0.075 N/A 0.029 N/A N/A N/A N/A N/A N/A 0.037 0.033 N/A N/A 0.053 0.008 0.021 0.119 0.027 0.015 N/A 0.013 0.008 0.032 0.028 0.005 0.145 0.048 57% 73% 79% 28% 71% N/A 43% 53% 93% 83% 42% 55% 107% *Lake Gibson is an Interconnected System ** Florida Central Commerce Park WWTP decommissioned in Sept 2016 and interconnected with the city of Longwood. The Unified Aqua Utility System served a total of 7,699 water customer accounts and 1,992 wastewater customer accounts as of September 30, 2016. Economic Condition The information presented in the financial statement is perhaps best understood when it is considered from the broader perspective of the specific environment within which the FGUA utility systems are located. Both the Lehigh Acres system and the North Fort Myers system are located in Lee County, which had been one of the fastest growing regions in the nation until the downturn in the housing market. According to data from the Florida Legislature Office of Economic and Demographic Research, Lee County’s population was anticipated to increase from 618,754 in 2010 to 680,539 in 2016, an increase of 10.0%. The increase in the number of housing units permitted in Lee County increased from 4,095 in 2014 to 6,879 in 2015, an increase of 67.99%. The unemployment rate continued to decline from the peak of 12.6% in 2010 to 5.0% in 2015. Recent foreclosure information suggests that the housing market is slowly improving, but significant recovery may take a number of years. Personal bankruptcy filings improved from 2.29 per 1,000 of population in 2015 to 1.58 per 1,000 of population as of September 30, 2016. The two Lee County systems have a significant amount of undeveloped land for future growth and expansion. - 23 - The Golden Gate System is located in Collier County. There is limited potential for new residential and commercial growth with the Golden Gate service area. According to data from the Florida Legislature Office of Economic and Demographic Research, Collier County’s population was anticipated to increase from 321,500 in 2010 to 350,202 in 2016, an increase of 8.9%. The increase in the number of housing units permitted in Collier County increased from 3,310 in 2014 to 4,060 in 2015, an increase of 12.47%. The unemployment rate continued to decline from the peak of 11.6% in 2010 to 5.2% in 2015. Personal bankruptcy filings improved from 2.68 per 1,000 of population in 2015 to 1.37 per 1,000 of population as of September 30, 2016. The Pasco, Lindrick, Consolidated and Pasco Aqua Utility Systems are located in Pasco County. According to data from the Florida Legislature Office of Economic and Demographic Research, Pasco County’s population is anticipated to increase from 464,697 in 2010 to 495,868 in 2016, an increase of 6.7%. The number of housing units permitted in Pasco County decreased from 2,785 in 2014 to 2,639 in 2015, a decrease of (5.2%). The unemployment rate continued to decline from the peak of 11.9% in 2010 to 5.8% in 2015. Personal bankruptcy filings continued to improve from 2.72 per 1,000 of population in 2015 to 2.37 per 1,000 of population as of September 30, 2016. Again, recent data suggests an improvement in market conditions. Portions of the FGUA service areas in Pasco County (Seven Springs) have significant potential for future growth and development, while others have limited growth opportunities. The Lake Aqua Utility Systems are located in Lake County. The FGUA service area within Lake County is largely built out and has limited growth opportunities. According to data from the Florida Legislature Office of Economic and Demographic Research, Lake County’s population is anticipated to increase from 297,047 in 2010 to 323,985 in 2016, an increase of 9.1%. The number of housing units permitted in Lake County increased from 2,488 in 2014 to 2,778 in 2015, an increase of 11.7%. The unemployment rate continued to decline from the peak of 11.8% in 2010 to 5.4% in 2015. Personal bankruptcy filings continued to improve from 3.07 per 1,000 of population in 2015 to 2.45 per 1,000 of population as of September 30, 2016. The Unified Aqua Utility System is spread throughout 10 different Florida Counties. A majority of the customers are located within Seminole County and Polk County. According to released data from the Florida Legislature Office of Economic and Demographic Research, Florida’s population is anticipated to increase by 311,405 from 2015 to 2020. The number of housing units permitted in Florida is back in positive territory, showing continued strong growth throughout the State. The unemployment rate continued to decline from the peak of 10.5% in 2010 to 4.9% as of September 30, 2015. Internal Control In developing and evaluating the FGUA’s accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (a) the cost of a control should not exceed the benefits likely to be derived there from; and (b) the evaluation of costs and benefits requires estimates and judgments by management. We believe all internal control evaluations occur within the above framework and that the FGUA’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. - 24 - Budgetary Control The FGUA maintains a system of budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Board. The level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated amount) is at the fund level. The FGUA also maintains an encumbrance system as one method of maintaining budgetary control. Encumbered amounts lapse at year end; however, outstanding encumbrances are re-appropriated as part of the following year’s budget. The budget process begins in the spring, when the staff develops proposed capital projects and operating budgets, with input from the Capital Program and Operations Managers and the Contract Operator. A planning retreat by the Board of Directors and senior staff is conducted in February or March of each year and is used to establish or update long-range system goals. Detailed budgets are presented by staff to the Systems Manager in late May. The System Manager’s budget is forwarded to the Board of Directors in June. Any adjustments to the budget, to include public hearings for any necessary rate changes, are typically conducted in August and September. The Board of Directors approves the final budget at a public hearing in September for the new fiscal year that begins October 1. As demonstrated by the statements and schedules included in the financial section of this report, the FGUA meets its responsibility for sound financial management. Factors Affecting Financial Condition Capital Improvement Program – The FGUA has adopted a five-year Capital Improvement Program (CIP) for the years 2017 to 2021, which outlines additions and improvements to its utility systems. The FGUA reviews and updates this five-year plan annually, authorizing appropriations for those projects scheduled to be started during the ensuing fiscal year. The cost of all new projects for fiscal year 2017 is approximately $18.9 million, and is estimated to total $60.0 million for the fiscal years 2017 – 2021. The CIP for each system is segregated into five major program areas, as follows: Wastewater Collection – This program calls for improvements to existing wastewater lines as well as the addition of new lines as the customer base increases. This program also calls for renewal of the existing system by repairing lines that allow infiltration/inflow and the rehabilitation of lift stations. Wastewater Treatment Facilities/Disposal – This program seeks to increase existing capacity as well as upgrade existing facilities. The objectives of this program are to promote reuse of reclaimed water, protect the environment, ensure that treatment capacity is available for growth, and ensure that facilities are in compliance with regulations of the United States Environmental Protection Agency and the State of Florida Department of Environmental Protection. Water Treatment Facilities (Water Production/Treatment) – This program ensures that the FGUA is able to deliver water to its customers during peak periods by expanding current production capabilities. This program also includes a comprehensive renewal program which provides for maintenance of water tanks, well pump facilities, well power systems, and filtration equipment. Water Distribution – This program calls for improvements to existing water lines as well as the addition of new lines as the customer base increases. - 25 - Meters – In order to maintain accurate water usage data for appropriate billing and reporting, the FGUA replaces meters each year. Most residential meters are replaced at ten years of age. Larger meters need to be replaced more frequently. General Projects – Specific project cost centers are created for special large projects as needed. The successful implementation of FGUA’s Capital Improvement Program calls for a portion of funding to be provided through existing balances of construction funds from bonds, with the remaining amounts to be funded from operating revenues and impact fees. Financial Policies In January 2009, the FGUA Board approved a Net Asset (Working Capital) Policy in order to maintain and improve financial stability and manage its financial resources for its various enterprise funds to: (1) provide sufficient cash flow for daily financial needs, (2) secure and maintain the highest possible investment grade bond ratings, (3) position properly for significant economic downturns or revenue shortfalls, and (4) provide funds for unforeseen expenditures related to emergencies. The FGUA’s investment policy is designed to minimize credit and market risk while maintaining a competitive yield on its investments. As of the end of the Fiscal Year all deposits were entirely covered by either federal depository insurance or pooled collateral held by the State Treasurer pursuant to Chapter 280, Florida Statutes. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a fourteenth consecutive Certificate of Achievement for Excellence in Financial Reporting to the Florida Governmental Utility Authority for its Comprehensive Annual Financial Report for the fiscal year ending September 30, 2015. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report could not have been accomplished without the efficient and dedicated services of the financial staff. Appreciation is expressed to all those who assisted and contributed to its preparation and to the Board for its interest and support in planning and conducting the operations of the FGUA in a responsible manner. Respectfully submitted, ____________________________ ______________________________ Stephen M. Spratt, System Manager David M. DiLena, CPA, Chief Financial Officer - 26 - certificate - 27 - FGUA ORGANIZATION CHART Board of Directors General Counsel System Manager Utility Counsel Capital Projects Manager Chief Financial Officer Community Services Manager Operations Manager Contract Operators Consulting Engineers Rate Consultants Community Service Representatives - 28 - List of Principal Officials Board Members Name Local Government Title Lea Ann Thomas, Chair Polk County Deputy County Manager Marjorie Craig (Alternate) Polk County Utilities Director James Cheek, P.E., Vice Chair Citrus County Director of Water Resources Department Christina Malmberg (Alternate) Citrus County Water Resources Department C.B. Flip Mellinger Pasco County Assistant County Administrator Robert J. Sigmond (Alternate) Pasco County Fiscal and Business Services Director Doug Muerer, P.E. Lee County Assistant County Manager, Public Works Pam Keyes, P.E. (Alternate) Lee County Utilities Director Shane Parker, P.E., Vice Chair Hendry County County Engineer Angel Roussel, P.E. Marion County Director of Marion County Utilities Brian Moree (Alternate) Marion County Assistant County Administrator Systems Manager Government Services Group, Inc. Stephen Spratt, Vice President David M. DiLena, CPA, Chief Financial Officer General Counsel Pennington, P.A. John C. Pelham Utility Counsel Nabors, Giblin & Nickerson, P.A. Heather Encinosa Bond Counsel Nabors, Giblin & Nickerson, P.A. Chris Traber Rate Consultant Public Resources Management Group, Inc. Robert J. Ori, President Financial Advisor Ford & Associates, Inc. Jon Ford Financial SectionTAB 2 - 29 - INDEPENDENT AUDITORS’ REPORT To the Board of Directors, Florida Governmental Utility Authority: Report on the Financial Statements We have audited the accompanying financial statements of the business-type activities and each major fund of Florida Governmental Utility Authority (the Authority), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements The Authority’s management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. - 30 - Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the business-type activities and each major fund of the Authority, as of September 30, 2016 , and the respective changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Authority’s basic financial statements. The introductory and statistical sections are presented for the purposes of additional analysis and are not a required part of the basic financial statements. The introductory section and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 10, 2017, on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance. Daytona Beach, Florida March 10, 2017 - 31 - FLORIDA GOVERNMENTAL UTILITY AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2016 As management of the Florida Governmental Utility Authority (FGUA), we offer readers of the FGUA’s financial statements this narrative overview and analysis of the financial activities for the fiscal year ending September 30, 2016. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. FINANCIAL HIGHLIGHTS he assets and deferred outflows of the FGUA exceeded its liabilities and deferred inflows at the close of fiscal year 2016 by $78,486,941 as the chart to the right indicates. Of this amount, $52,844,021 may be used to meet the FGUA’s ongoing obligations to citizens and creditors (Unrestricted Net Position). This is an increase of $10,428,714 or 25% in unrestricted net position from the prior year. GUA’s total net position increased by $14 million in fiscal year 2016. As the chart on the next page indicates, all systems net positions increased as follows: • The MacDill AFB Utility System contributed $4.6 million or 32.6% of the increase in total net position, primarily thanks to capital grants. • The Consolidated Utility System contributed $1.7 million or 12.4% of the increase in total net position. • The Golden Gate Utility System contributed $1.7 million or 12% of the increase in total net position. • The Lehigh Utility System contributed $1.5 million or 11% of the increase in total net position, primarily because of cost saving from bond refunding. • The Lake Aqua, Pasco Aqua, and Unified Aqua Utility Systems contributed a combined $1.5 million or 10.5% of the increase in total net position. • The North Fort Myers Utility System contributed $1.5 million or 10.4% of the increase in total net position. • The Pasco Utility System contributed $1.2 million or 8.4% of the increase in total net position. • The Lindrick Utility System contributed $322,996 or 2.3% of the increase in total net position. • The Authority has one non-specific fund that pre-pays expenses, and then is reimbursed by the appropriate enterprise funds upon determination of a reasonable allocation basis. It also pays for the rare non-allocable expenses for minor contractual services provided to the Authority. This fund had an increase in net position of $57,484, which increased the FGUA total net position by 0.4%. T F FLORIDA GOVERNMENTAL UTILITY AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2016 (continued) - 32 - Increase (decrease) in Net Position by System for the Year Ending September 30, 2016 he net decrease in total debt as of September 30, 2016 was $15,670,608. As the chart on the next page indicates, the Lehigh Utility system had the greatest decrease in debt ($15.6 million). The proceeds from the Lehigh Series 2014 Refunding Revenue Bonds ($19.6 million) were placed into an Escrow Deposit Agreement with Wells Fargo Bank on October 8, 2014 (FY 2015), and were paid out to the series 2005 bondholders on October 1, 2015 (FY 2016). The Barefoot Bay Utility System is treated like a custodial fund, where FGUA records the outstanding debt, along with the restricted assets secured to pay the debt as it becomes due. In fiscal year 2016, principal payments reduced the debt in this system by $530,000. While most of the utility systems experienced a decrease in total debt, Golden Gate, Lehigh, North Fort Myers, Lindrick and Consolidated Utilities took on debt to fund an energy savings program. These five utility systems are currently installing more efficient equipment. The savings from more efficient equipment is expected to be more than adequate to repay the additional debt. More information can be found in Note 7 of the Financial Section. T FLORIDA GOVERNMENTAL UTILITY AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2016 (continued) - 33 - OVERVIEW OF THE FINANCIAL STATEMENTS his discussion and analysis is intended to serve as an introduction to the Florida Governmental Utility Authority’s (FGUA) basic financial statements. Since the FGUA is a special-purpose government involved solely in the provision of water and wastewater services to its customers on a fee basis, all funds are accounted for in Proprietary Funds, specifically eleven enterprise funds. Therefore, there are no government-wide financial statements, as they would be redundant to the fund financial statements. This report contains fund financial statements and notes to the financial statements. The report also contains other supplementary information in addition to the basic financial statements themselves. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The FGUA, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All funds of the FGUA are proprietary funds, with one fund set up for each geographically separate utility system operated by the FGUA. Proprietary Funds The FGUA operates only one type of proprietary fund, and a separate enterprise fund is maintained for each utility system. Enterprise funds are used to report business-type functions, which recover all or a significant portion of their costs through user fees and charges. T FLORIDA GOVERNMENTAL UTILITY AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2016 (continued) - 34 - The proprietary fund financial statements are comprised of a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows. The Statement of Net Position presents information on the FGUA’s assets, deferred outflows of resources, liabilities, deferred inflows of resources and net position. The Statement of Revenues, Expenses and Changes in Net Position presents information on the revenues received, the expenses incurred, and the positive or negative results of the individual utility system’s increase or decrease in net position, presented on an accrual basis. The Statement of Cash flows provides information on the cash flows of each utility system, based on operations, financing activities, capital uses, and investment activities and a supplemental schedule of noncash activities. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the financial statements. Other Information In addition to the basic financial statements and accompanying notes, this report also presents supplementary information concerning its compliance with the funding of outstanding debt issues. This information, known as Coverage Ratios, is provided as part of the information contained in the Statistical Section of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS Net position may serve over time as a useful indicator of a government’s financial position. In the case of the Florida Governmental Utility Authority, the assets and deferred outflows exceeded the liabilities and deferred inflows by $78 million at the close of fiscal year 2016. See the condensed Statement of Net Position on the table on the next page. • Net investment in capital assets (e.g. land, buildings, and equipment) is presented net of any depreciation and the outstanding balances of any bond or other borrowings that are attributed to the acquisition, construction, or improvements of those assets. These assets are used to provide services to our customers, and consequently, these assets are not available for future spending (restricted). Net investment in capital assets ended the year with a deficit balance of $16,569,953 which is a $741,920 decrease from the prior year deficit balance of $17,311,873. The deficit decreased because more capital assets were added than depreciation was expensed, and because more capital asset-related debt was paid off than was incurred. • Net Position Restricted for Capital Projects ended the year with a balance of $12,586,073, which is an increase of $1.8 million. This is the balance in the Renewal and Replacement fund and the Water Capacity and Wastewater Capacity funds. These funds are restricted impact fees and by bond covenants to be used only for the purchase or construction of capital assets to renew and expand the utilities’ assets. • Net Position Restricted for Debt Service ended the year with a balance of $29,626,800 which is an increase of $1,052,615 as compared to the prior year. Restricted for Debt Service represents resources reserved for payment of the debt service (principal and interest) on external debt; consequently, these assets are not available for other uses. • Net Position Unrestricted ended the year with a balance of $52,844,021 which is an increase of $10.4 million or 24.6% as compared to the prior year and is available for other budgetary uses of the FGUA. FLORIDA GOVERNMENTAL UTILITY AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2016 (continued) - 35 - Florida Governmental Utility Authority Condensed Statement of Net Position 2016 2015 Current & Other Assets 256,835,496$ 259,816,084$ Capital Assets 276,902,826 277,163,602 Assets 533,738,322 536,979,686 Deferred loss on bond refunding 670,562 384,214 Deferred Outflows 670,562 384,214 Assets & Deferred Outflows 534,408,884$ 537,363,900$ Long Term Liabilities 422,546,779$ 418,245,036$ Other Liabilities 33,375,164 54,655,783 Total Liabilities 455,921,943 472,900,819 Net Position Net investment in Capital Assets (16,569,953) (17,311,873) Restricted for Capital Projects 12,586,073 10,785,462 Restrcited for Debt Service 29,626,800 28,574,185 Unrestricted 52,844,021 42,415,307 Total Net Position 78,486,941$ 64,463,081$ In the past year, assets decreased by $3 million or 0.60%. The cash in from the additional $15 million from SunTrust for the Energy Savings program offset the $19 million that was paid to defease the Lehigh 2005 Series bonds. The remainder of the decrease in assets is the interrelation between the increase in operating income, debt service payments, and deprecation. Deferred Outflows increased by $286,348 as the FGUA began amortizing a loss on the advance refunding of the Lehigh Series 2005 bonds. Total liabilities decreased by $17 million or 3.6%. Short term liabilities decreased most significantly because of the $19 million refunding of the Lehigh 2005 bonds in October 2015. Despite the issuance in $15 million in new debt for the Energy Savings program, long term liabilities increased only $4.3 million, because the FGUA pays approximately $10 million a year in principal. The increase in net position of $14 million represents the degree to which revenues have exceeded expenses in the past year combined with the decrease in debt. The refundings of Golden Gate and Lehigh bonds over the past three years has resulted in significantly lower interest expense. See chart on the next page. Operating revenues increased 4.46% which was adequate to cover the 3.45% increase in operating expenses. The increase in operating revenues is partially due to rate increases which varied by system between 1.7% to 3.2%. Additionally, one of the most significant changes was the adoption of an inactive charge effective October 1, 2015 on the Aqua system rates. This effectively spreads base fees more fairly across all connections, and is practiced in all the other FGUA utilities. FLORIDA GOVERNMENTAL UTILITY AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2016 (continued) - 36 - Operating expenses increased 3.45%. Nearly 90% of the FGUA’s operating expenses are set in multi-year contracts which increase annually on an agreed-up consumer price index. For the fiscal year ending September 30, 2016, all of the FGUA utility systems’ net positions increased. The FGUA continues to maintain a financially healthy system. The unrestricted cash balance increased by 24% from $39.4 million at FYE 2015 to $49.1 million at FYE 2016, showing a financially healthy utility system with good liquidity. Florida Governmental Utility Authority Condensed Statement of Revenues, Expenses, and Changes in Net Position 2016 2015 Operating revenues Water and wastewater revenues 80,618,152$ 76,532,418$ Other operating revenues 2,892,330 3,413,729 Operating expenses (40,562,861) (39,211,592) Operating income before depreciation and amortization 42,947,621 40,734,555 Depreciation and amortization (18,737,495) (18,191,389) Operating income 24,210,126 22,543,166 Non-Operating revenues (expenses) Investment revenue, net 754,268 709,064 Operating grants 292,386 - Miscellaneous non-operating revenues 295,944 270,238 Interest expense, net (17,468,033) (18,562,920) Debt issuance cost (153,398) (621,419) Income (loss) before capital contributions 7,931,293 4,338,129 Recoverable portion of purchase price (MacDill) 1,528,480 1,523,016 Capital contributions and grants 4,564,087 4,222,335 Change in net position 14,023,860 10,083,480 Total net position - beginning 64,463,081 54,379,601 Total net position - end of year 78,486,941$ 64,463,081$ SIGNIFICANT CAPITAL ASSET AND LONG TERM DEBT ACTIVITY The fiscal year ending September 30, 2016 represents the seventeenth full fiscal year of the FGUA’s operations. During this period, the following significant events occurred: Capital Assets uring FY 2016, the FGUA’s net capital assets remained nearly unchanged, with renewals and capital additions near equal to depreciation. The MacDill AFB Utility System accounted for $3.5 million of the increase in net capital assets during the year thanks to federally-funded capital asset grants. On the other hand, Lehigh and North Fort Myers saw decreases in capital asset values of $2.9 million and $1.1 million respectively, while large capital projects were awaiting bid results or were put on hold by regulatory agencies. The remaining systems showed small increases or decreases in net capital assets. Of the $277 million recorded for Capital Assets (net of depreciation), $6 million represent costs incurred for capital projects that are under construction, but not yet completed as of September 30, 2016. Additional information on the FGUA’s capital assets can be found in Note 6 of the Financial Section. D FLORIDA GOVERNMENTAL UTILITY AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2016 (continued) - 37 - Debt Administration n September 30, 2016, the FGUA had outstanding debt in the amount of $430 million in the form of revenue bonds, state revolving loans, seller financed notes and a capital lease. This is a decrease of $15 million from the prior year’s debt balance of $445 million. The FGUA tends to pay down $10 million a year in principal. In addition, during 2016, the FGUA issued an additional $15 million in debt while also advance refunding nearly $20 million. Half of the outstanding debt issues are fully insured via municipal bond insurance policies issued by Ambac Assurance Corporation and Assured Guaranty. The remaining issuances have reserve accounts with a September 30, 2016 fair market value of $16.8 million. The FGUA maintains a debt coverage ratio of 1.1 or better (net operating income to debt service) for each of its utilities. The following chart shows the actual coverage compared to the required coverage for the past ten years for debt secured by pledged water and wastewater revenues. The FGUA is prohibited by Chapter 163, Florida Statutes from imposing property taxes. In addition, it is further prohibited from issuance of general obligation debt. It is, however, authorized to impose special assessments upon property owners, whose property will benefit from water and wastewater system improvements. Refer to Note 7 and the Statistical Section for more information on the FGUA’s Long Term Debt and Coverage Ratios for each utility system. O FLORIDA GOVERNMENTAL UTILITY AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2016 (continued) - 38 - FACTORS EXPECTED TO HAVE AN ECONOMIC IMPACT ON FUTURE OPERATIONS Future Growth in Customers ue to continued economic conditions, customer growth within each utility system continues to be low. There was positive overall utility growth for fiscal year 2016. The net addition of 2,360 active connections to our records is mostly due to changing the inactive account base fee policy for the Aqua systems. In addition, just over 2,000 re-use irrigation customers in the Pasco systems were accidentally classified as “sewer” customers, and were re-classified to water customers. The changes in customer counts in 2016 were verified through further billing and meter audits. We predict the rate of future growth will continue to be relatively flat. Management monitors growth closely as it has an impact on the infrastructure needs of the Utility Systems and requires prudent long term capital planning. The FGUA will continue to meet system demands by managing the capital improvement projects in accordance with the FGUA capital improvement plan that is adopted each September with the FGUA operating budget. (Further information on customer growth for the past ten years can be found in the Statistical Section). FINANCIAL INFORMATION Operations core function of the FGUA is to use the collective power of local governments, performing as board members, to acquire, improve, operate, and maintain water and wastewater facilities. Local governments hold the option to acquire any FGUA utility system within its jurisdiction. This makes the FGUA a unique local government. The financial statements can fluctuate significantly as the FGUA acquires utility systems or transitions them over to the local government. There are also years that have small to moderate fluctuations when there are no acquisitions or transitions, and the financial activities are only reflective of traditional operational activities. There are no major differences in FY 2016 operations as compared to FY 2015 operations. Generally, revenues and expenses increased modestly. The new debt that was issued was more than offset by defeasance of other debt. The impacts of acquisitions and transitions are reflected throughout this narrative as explanations for the large variances from prior years; however, there were no acquisitions or sales of utility systems neither in FY 2016 nor in FY 2015. As a result, many of the explanations for the variances may seem redundant; however, each utility system of the FGUA operates independently. It is important, therefore, for the reader to understand that while the FGUA system, as a whole, may have been impacted by a transition activity in prior years; the explanations for the individual operations of the utility systems are more reflective of the traditional governmental utility operation. D A FLORIDA GOVERNMENTAL UTILITY AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2016 (continued) - 39 - perating revenues (excluding the General Fund) increased $3.6 million or 4.5% from $79.9 million in FY 2015 to $83.4 million in FY 2016. • The Golden Gate Utility System realized an increase in operating revenues of $222,647 or 2.9% as compared to the prior year. This increase was primarily the result of a Consumer Price Index increase in rates (1.7%) as well as a 1% increase in the number of connections. • The Lehigh Acres Utility System realized an increase in operating revenues of $477,453 or 3.4% as compared to the prior year. This increase was primarily the result of a Consumer Price Index increase in rates as well as a 1.3% increase in the number of connections and a slight increase in user consumption. • The Pasco Utility System realized an increase in operating revenues of $694,846 or 3.8% as compared to the prior year. This increase was primarily the result of prior years’ rate increases, a slight increase in users, and a general increase in consumption. • The Consolidated Utility System realized an increase in operating revenues of $354,769 or 6.2% as compared to the prior year. This increase was primarily the result of an increase in rates of 3.2% at the beginning of the year, a nearly 1% increase in the number of connections, and a general increase in consumption. • The Lindrick Utility System realized an increase in operating revenues of $47,283 or 1.1% as compared to the prior year. This increase was primarily the result of a Consumer Price Index increase in rates at the beginning of the year. • The North Fort Myers Utility System realized an increase in operating revenues of $522,777 or 4.6% as compared to the prior year. This increase was primarily the result of a Consumer Price Index increase in rates at the beginning of the year, as well as an increase in bulk wastewater usage by Lee County. • The MacDill AFB Utility System operating revenues increased $68,289, or 1.5%, as compared to the prior year. This increase is the result of a Consumer Price Index increase from the Federal Government effective March 1 of each year. • The Lake Aqua, Pasco Aqua, and Unified Aqua Utility Systems contributed an additional $1,174,168 in operating revenues. This increase was primarily the result of a rate structure change put into effect at the beginning of the year to charge inactive account base fees to all connections. Operating Revenues by System for the Year Ending September 30 O FLORIDA GOVERNMENTAL UTILITY AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2016 (continued) - 40 - perating expenses (excluding the General Fund and depreciation and amortization) increased by $1,347,425, or 3.44% from $39 million in FY 2015 to $40.5 million in FY 2016. Most of the FGUA’s operating expenses are fixed on multi-year contracts with an agreed-upon Consumer Price Index increase. • The Golden Gate Utility System realized a small increase in operating expenses of $51,441 or 1.7%. Lower electricity and regulatory expenses offset the annual contract inflationary increases (approximately 3%). • The Lehigh Acres Utility System realized an increase in operating expenses of $470,228 or 7.6% as the result of increased costs of chemicals, electricity, and security monitoring. In addition, customer service office rent was temporarily higher while the FGUA coordinated a move into a less expensive location. • The Pasco Utility System realized an increase in operating expenses of $527,468 or 5.7%. The increase is primarily attributed to an increase in purchased water, as well as an increase in additional operating and maintenance expenses. • The Consolidated Utility System realized a decrease in operating expenses of $124,995 or -4.7%. This decrease is related to lower purchased wastewater services during the year. • The Lindrick Utility System realized an increase in operating expenses of $27,364 or 1.2%. This increase was the result of a general inflationary increase in operating expenses. • The North Fort Myers Utility System realized a small increase in operating expenses of $54,675 or 1.0%. Lower electricity and additional maintenance costs offset the annual contract inflationary increases. • The MacDill AFB Utility System realized an increase in operating expenses of $10,731 or 0.4%, which is mostly explained by the 1.5% economic price index increase in effect for the first half of FY 2016, and the subsequent -0.5% economic price index increase in effect for the latter half of the fiscal year. • The Aqua Pasco, Aqua Lake and Aqua Unified Utility Systems contributed to the FGUA’s increase in operating expenses by $330,512 or 4.1%. The operations and maintenance contracts increased by 3% (inflation). The remaining 1% increase was related to additional maintenance and regulatory expenses. Operating Expenses by System for the Year Ending September 30 (excluding depreciation and amortization) O FLORIDA GOVERNMENTAL UTILITY AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2016 (continued) - 41 - perating income is the net of operating revenue against operating expenses. All of the FGUA utilities experienced an increase in operating income in FY 2016. Operating income (excluding the General Fund and depreciation and amortization expense) increased by $2.2 million or 5.4% from $40.7 million in FY 2015 to $42.9 million in FY 2016. See the chart below for a comparison of FY 2015 to FY 2016 operating income by utility system. The two utility systems with the most significant increases in operating income were the Consolidated Utility System ($479,764 or 15.7% increase) and the Unified Aqua Utility System ($588,022 or 25.6% increase). The Consolidated Utility System’s expenses were lower than anticipated and continue to reap the benefits of rate increases above consumer price index levels. The Unified Aqua Utility System increase is nearly entirely related to the inactive account base fee restructure. The third utility with a significant operating income increase is the North Fort Myers System. North Fort Myers operating income increased $468,102 or 8% over FY 2015. As explained above in the revenue section North Fort Myers has experienced a significant increase in sales of bulk wastewater treatment services to Lee County. Operating Income by System for the Year Ending September 30 (excluding depreciation and amortization) O FLORIDA GOVERNMENTAL UTILITY AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2016 (continued) - 42 - CUSTOMERS he following chart depicts the change in water and wastewater billed customers over the last two years. The increases and decreases in customer numbers for all systems were primarily the outcome of continued internal meter audits. The change in Pasco Systems is related to a reclassification of re-use irrigation water customers from wastewater to water customers. The increase in the Aqua systems is due to a policy change related to base fee charges. All the FGUA systems charge base fees as long as there is a connection to a home that must be maintained, whether the home is occupied or vacant. The Aqua systems did not have this fee in their rate schedule until October 1, 2015. This resulted in an increase of nearly 1,800 accounts, which adds to the stability of the systems and improves the utilities’ ability to spread the cost of the treatment plants more fairly across connected premises. 6/30/2016 6/30/2015 Growth Percent Growth 6/30/2016 6/30/2015 Growth Percent Growth System Golden Gate 3,684 3,646 38 1.04% 2,297 2,274 23 1.01% Lehigh Acres 12,643 12,489 154 1.23% 10,421 10,278 143 1.39% Pasco Systems 18,069 15,958 2,111 13.23% 15,328 17,344 (2,016) -11.62% Consolidated Systems 6,474 6,416 58 0.90% 3,337 3,308 29 0.88% Lindrick Utility System 3,089 3,074 15 0.49% 2,586 2,572 14 0.54% North Fort Myers System 1,855 1,843 12 0.65% 11,963 11,954 9 0.08% MacDill AFB 1 1 0 0.00% 1 1 0 0.00% Lake Aqua System 5,040 4,630 410 8.86% 1,243 1,160 83 7.16% Pasco Aqua System 3,272 2,851 421 14.77% 3,106 2,696 410 15.21% Unified Aqua System 7,699 7,338 361 4.92% 1,992 1,907 85 4.46% Totals 61,826 58,246 3,580 6.15% 52,274 53,494 (1,220) -2.28% Note: Reflects active customers on June 30 Water Customers Wastewater Customers T FLORIDA GOVERNMENTAL UTILITY AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2016 (continued) - 43 - he following chart shows the change in the number of customers over the past ten years. While the individual utilities have traditionally experienced relatively flat growth in the customer base, acquisitions of new systems and transitioning of exiting systems may be reflected in the changes shown below. The last disposition of any FGUA utility systems was the transition of the Poinciana and Citrus utility systems in 2007. In 2009, the FGUA acquired the Pasco utility systems. In 2010, the FGUA acquired the Consolidated, Lindrick, and North Fort Myers utility systems. In 2013, the FGUA acquired the Lake Aqua, Pasco Aqua, and Unified Aqua utility systems. The number of utility systems and the size of the customer base of each system for a given year affect the upward and downward changes over this ten year period. Refer to the Statistical Section for additional information. MOST RECENT 10 YEARS OF FGUA CUSTOMERS REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the Florida Governmental Utility Authority’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the FGUA Office of the Chief Financial Officer, 280 Wekiva Springs Road, Suite 2070, Longwood, FL 32779. T Non-System Golden Gate Lehigh Barefoot Bay Pasco Specific Utility System Utility System Utility System Utility System ASSETS Current assets Cash and cash equivalents 457,120$ 6,797,569$ 12,356,970$ -$ 8,862,301$ Restricted assets: Cash and cash equivalents - 1,838,640 3,332,954 6,827,499 Bonds receivable - - - 555,000 - Interest receivable - - - 276,194 - Accounts receivable, net - 1,166,278 2,293,815 - 2,398,000 Due from other governments - - - - - Prepaid items 17,944 224,819 349,607 - 24,022 Total current assets 475,064 10,027,306 18,333,346 831,194 18,111,822 Non-current assets Restricted assets: Cash and cash equivalents - 4,519,136 10,924,302 - 7,138,599 Investments - - - - 1,943,315 Bonds receivable - - - 10,405,000 - Special assessment receivable - - 354,561 - - Intangible right-of-use agreement - - - - - Land - 500,040 2,557,284 - 1,637,519 Utility plants 63,876 46,716,195 115,178,422 - 59,915,624 Construction in process - 385,883 2,344,673 - 351,894 Accumulated depreciation (11,540) (22,558,111) (50,558,856) - (12,826,975) Excess of cost over fair value of acquired assets, net - 5,654,054 1,894,555 - 41,155,334 Total non-current assets 52,336 35,217,197 82,694,941 10,405,000 99,315,310 Total Assets 527,400$ 45,244,503$ 101,028,287$ 11,236,194$ 117,427,132$ DEFERRED OUTFLOWS OF RESOURCES Deferred loss on bond refunding -$ 362,407$ 308,155$ -$ -$ LIABILITIES Current liabilities Accounts payable 75,853$ 443,130$ 848,080$ -$ 1,021,027$ Customer deposits - 590,373 1,234,501 - 1,554,285 Liabilities payable from current restricted assets: Accounts payable - 236,760 73,585 - 382,822 Interest payable - 388,650 1,359,369 276,194 3,534,677 Current portion of long-term debt - 1,213,230 1,900,000 555,000 2,910,000 Total current liabilities 75,853 2,872,143 5,415,535 831,194 9,402,811 Non-current liabilities Non-current portion of long-term debt - 39,658,828 71,037,932 10,405,000 112,578,264 Total Liabilities 75,853$ 42,530,971$ 76,453,467$ 11,236,194$ 121,981,075$ NET POSITION Net investment in capital assets 52,336$ (7,311,519)$ 5,455,959$ -$ (24,462,687)$ Restricted for: Capital projects - 2,285,134 3,017,185 - 818,977 Debt service - 947,161 3,137,459 - 10,380,756 Unrestricted 399,211 7,155,163 13,272,372 - 8,709,011 Total Net Position 451,547$ 3,075,939$ 24,882,975$ -$ (4,553,943)$ FLORIDA GOVERNMENTAL UTILITY AUTHORITY STATEMENT OF NET POSITION SEPTEMBER 30, 2016 The accompanying notes to financial statements are an integral part of this statement. - 44 - Consolidated Lindrick N. Fort Myers MacDill AFB Lake Aqua Pasco Aqua Unified Aqua Utility Systems Utility System Utility System Utility System Utility System Utility System Utility System Total 5,765,238$ 2,278,935$ 5,171,645$ 1,607,456$ 1,093,318$ 2,128,776$ 2,587,991$ 49,107,319$ 911,381 1,602,663 3,527,328 1,461,159 813,174 915,687 1,499,154 22,729,639 - - - - - - - 555,000 - - - - - - - 276,194 754,793 547,132 1,238,625 1,846,244 485,942 543,328 1,047,649 12,321,806 - - - - 32,057 - - 32,057 19,842 10,086 43,392 7,271 52,557 27,583 65,486 842,609 7,451,254 4,438,816 9,980,990 4,922,130 2,477,048 3,615,374 5,200,280 85,864,624 8,017,062 4,254,501 5,099,172 2,505,352 1,172,858 1,938,945 1,930,111 47,500,038 - 425,932 1,064,830 - - - - 3,434,077 - - - - - - - 10,405,000 - - - - - - - 354,561 - 3,273,200 - - - - - 3,273,200 241,706 49,504 345,610 - 227,084 177,465 1,663,935 7,400,147 8,407,919 5,748,215 62,897,076 39,171,601 7,754,255 6,415,918 21,943,934 374,213,035 162,284 95,593 184,756 2,144,899 34,708 27,290 366,452 6,098,432 (1,300,558) (929,346) (11,262,723) (5,102,405) (1,508,388) (1,088,857) (3,661,028) (110,808,787) 11,297,056 13,007,746 13,926,752 - 7,695,140 10,193,380 1,179,978 106,003,995 26,825,469 25,925,345 72,255,473 38,719,447 15,375,657 17,664,141 23,423,382 447,873,698 34,276,723$ 30,364,161$ 82,236,463$ 43,641,577$ 17,852,705$ 21,279,515$ 28,623,662$ 533,738,322$ -$ -$ -$ -$ -$ -$ -$ 670,562$ 272,784$ 250,086$ 594,578$ 335,530$ 214,620$ 177,813$ 570,843$ 4,804,344$ 315,357 152,688 409,253 5,500 186,454 252,820 308,756 5,009,987 156,560 59,411 286,994 793,426 78,608 94,705 421,726 2,584,597 519,221 870,519 1,946,134 - 369,566 415,982 502,428 10,182,740 235,600 672,733 1,294,200 667,733 365,000 405,000 575,000 10,793,496 1,499,522 2,005,437 4,531,159 1,802,189 1,214,248 1,346,320 2,378,753 33,375,164 28,739,823 25,314,818 59,260,640 14,162,932 17,115,360 18,943,097 25,330,085 422,546,779 30,239,345$ 27,320,255$ 63,791,799$ 15,965,121$ 18,329,608$ 20,289,417$ 27,708,838$ 455,921,943$ (5,417,731)$ (2,208,283)$ 6,469,226$ 21,383,430$ (3,275,400)$ (3,188,069)$ (4,067,215)$ (16,569,953)$ 787,063 687,816 1,490,940 3,173,085 60,379 265,494 - 12,586,073 2,716,314 2,130,994 5,034,667 - 1,475,318 1,643,619 2,160,512 29,626,800 5,951,732 2,433,379 5,449,831 3,119,941 1,262,800 2,269,054 2,821,527 52,844,021 4,037,378$ 3,043,906$ 18,444,664$ 27,676,456$ (476,903)$ 990,098$ 914,824$ 78,486,941$ The accompanying notes to financial statements are an integral part of this statement. - 45 - Non-System Golden Gate Lehigh Barefoot Bay Pasco Specific Utility System Utility System Utility System Utility System Operating revenues Water and wastewater revenues -$ 7,683,446$ 13,679,328$ -$ 18,497,206$ Other operating revenues 78,500 247,559 679,369 - 556,931 Total operating revenues 78,500 7,931,005 14,358,697 - 19,054,137 Operating expenses Operating and management services - 2,575,174 6,159,237 - 9,188,433 Other operating expenses 15,217 420,278 513,181 - 598,094 Depreciation and amortization 10,757 2,007,727 4,512,803 - 4,001,181 Total operating expenses 25,974 5,003,179 11,185,221 - 13,787,708 Operating income 52,526 2,927,826 3,173,476 - 5,266,429 Nonoperating revenues (expenses) Investment income 548 15,131 25,161 552,388 69,935 Miscellaneous income - 6,260 8,456 - 130,109 Build America Bond interest subsidies - - - - 2,306,024 Operating grants - - - - 286,270 Interest expense - (1,402,480) (2,282,566) (552,388) (7,065,942) Debt issuance costs - (23,410) (65,227) - - Total nonoperating revenues (expenses) 548 (1,404,499) (2,314,176) - (4,273,604) Income (loss) before capital contributions 53,074 1,523,327 859,300 - 992,825 Capital contributions Capital grants - - - - - Recoverable portion of system purchase price - - - - - Impact fees and developer contributions 4,409 154,468 678,993 - 189,936 Total capital contributions 4,409 154,468 678,993 - 189,936 Increase (decrease) in net position 57,483 1,677,795 1,538,293 - 1,182,761 Net position, beginning of year 394,064 1,398,144 23,344,682 - (5,736,704) Net position, end of year 451,547$ 3,075,939$ 24,882,975$ -$ (4,553,943)$ FLORIDA GOVERNMENTAL UTILITY AUTHORITY STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2016 The accompanying notes to financial statements are an integral part of this statement. - 46 - Consolidated Lindrick N. Fort Myers MacDill AFB Lake Aqua Pasco Aqua Unified Aqua Utility Systems Utility System Utility System Utility System Utility System Utility System Utility System Total 5,756,838$ 4,386,122$ 11,624,025$ 4,587,124$ 3,593,194$ 3,653,712$ 7,157,157$ 80,618,152$ 297,365 124,976 155,177 67,664 151,117 193,461 340,211 2,892,330 6,054,203 4,511,098 11,779,202 4,654,788 3,744,311 3,847,173 7,497,368 83,510,482 2,304,786 2,089,691 4,867,793 2,257,207 1,964,884 1,537,078 4,198,853 37,143,136 205,484 129,478 556,941 220,101 204,510 138,779 417,662 3,419,725 763,989 774,071 2,678,362 1,355,675 745,010 713,237 1,174,683 18,737,495 3,274,259 2,993,240 8,103,096 3,832,983 2,914,404 2,389,094 5,791,198 59,300,356 2,779,944 1,517,858 3,676,106 821,805 829,907 1,458,079 1,706,170 24,210,126 15,848 17,420 39,676 - 3,837 6,560 7,764 754,268 773 386 24,477 122,893 - 1,093 1,497 295,944 - 567,927 1,190,214 - - - - 4,064,165 - 6,116 - - - - - 292,386 (1,114,479) (1,772,556) (3,900,445) (885,734) (741,561) (832,403) (981,644) (21,532,198) (31,654) (21,746) (11,361) - - - - (153,398) (1,129,512) (1,202,453) (2,657,439) (762,841) (737,724) (824,750) (972,383) (16,278,833) 1,650,432 315,405 1,018,667 58,964 92,183 633,329 733,787 7,931,293 - - - 2,977,457 - - - 2,977,457 - - - 1,528,480 - - - 1,528,480 91,008 7,590 443,006 - 2,800 1,300 13,120 1,586,630 91,008 7,590 443,006 4,505,937 2,800 1,300 13,120 6,092,567 1,741,440 322,995 1,461,673 4,564,901 94,983 634,629 746,907 14,023,860 2,295,938 2,720,911 16,982,991 23,111,555 (571,886) 355,469 167,917 64,463,081 4,037,378$ 3,043,906$ 18,444,664$ 27,676,456$ (476,903)$ 990,098$ 914,824$ 78,486,941$ The accompanying notes to financial statements are an integral part of this statement. - 47 - Non-System Golden Gate Lehigh Barefoot Bay Pasco Specific Utility System Utility System Utility System Utility System Cash flows from operating activities Cash received from customers, including customer deposits 38,126$ 7,922,757$ 14,266,625$ -$ 19,227,351$ Cash received from rental activities - 6,260 8,456 - 130,109 Cash payments for contractual and other services (3,430) (2,935,512) (6,595,283) - (9,878,876) Net cash provided by (used in) operating activities 34,696 4,993,505 7,679,798 - 9,478,584 Cash flows from capital and related financing activities Proceeds from issuance of bonds and loans - 2,271,100 6,705,500 - - Debt issuance costs - (23,410) (65,227) - - Principal paid on revenue bond and assessment note maturities - (1,167,059) (22,190,000) (530,000) (2,845,000) Interest paid on revenue bonds and assessment note - (1,593,180) (3,234,153) (538,476) (7,119,712) Build America Bond subsidy receipts on revenue bonds - - - - 2,306,024 Payments to acquire and construct plant property (40,371) (1,495,411) (2,213,333) - (1,190,101) Capital grants - - - - 286,270 Impact fees and other capital contributions 4,409 90,758 596,597 - 53,061 Net cash provided by (used in) capital and related financing activities (35,962) (1,917,202) (20,400,616) (1,068,476) (8,509,458) Cash flows from investing activities Proceeds from bond maturities - - - 530,000 - Sales (purchases) of investments - - - - 1,719,607 Interest received 548 15,131 25,161 538,476 69,935 Net cash provided by (used in) investing activities 548 15,131 25,161 1,068,476 1,789,542 Net increase (decrease) in cash and cash equivalents (718) 3,091,434 (12,695,657) - 2,758,668 Cash and cash equivalents, beginning of year 457,838 10,063,911 39,309,883 - 20,069,731 Cash and cash equivalents, end of year 457,120$ 13,155,345$ 26,614,226$ -$ 22,828,399$ Reconciliation of operating income to net cash provided by (used in) operating activities Cash flows from operating activities Operating income 52,526$ 2,927,826$ 3,173,476$ -$ 5,266,429$ Adjustments to reconcile operating income to net cash provided by operating activities: Miscellaneous nonoperating income - 6,260 8,456 - 130,109 Depreciation and amortization expense 10,757 2,007,727 4,512,803 - 4,001,181 Changes in assets and liabilities Decrease (Increase) in accounts receivable - (65,593) (161,020) - 62,225 Decrease (Increase) in prepaid expenses 11,787 2,787 8,326 - (19,987) Increase (Decrease) in accounts payable and accrued expenses (40,374) 57,153 68,809 - (72,362) Increase (Decrease) in customer deposits payable - 57,345 68,948 - 110,989 Total adjustments (17,830) 2,065,679 4,506,322 - 4,212,155 Net cash provided by (used in) operating activities 34,696$ 4,993,505$ 7,679,798$ -$ 9,478,584$ Supplemental schedule of noncash investing, capital, and financing activities Amortization of excess of cost over fair value of acquired assets -$ 452,324$ 264,357$ -$ 1,835,926$ Amortization of deferred loss on refunding - 21,807 - - - Bond discount (premium) amortization - (193,083) (146,051) - 12,804 Plant property contributed by developers - 63,710 82,396 - 136,875 FLORIDA GOVERNMENTAL UTILITY AUTHORITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2016 The accompanying notes to financial statements are an integral part of this statement. - 48 - Consolidated Lindrick N. Fort Myers MacDill AFB Lake Aqua Pasco Aqua Unified Aqua Utility Systems Utility System Utility System Utility System Utility System Utility System Utility System Total 6,023,948$ 4,624,548$ 11,902,470$ 4,172,359$ 3,698,940$ 3,817,773$ 7,345,450$ 83,040,347$ 773 386 24,477 122,893 - 1,093 1,497 295,944 (2,602,818) (2,188,606) (5,551,996) (2,551,088) (2,160,326) (1,746,864) (4,664,239) (40,879,038) 3,421,903 2,436,328 6,374,951 1,744,164 1,538,614 2,072,002 2,682,708 42,457,253 3,145,300 2,094,600 994,500 160,206 32,057 - - 15,403,263 (31,654) (21,746) (11,361) - - - - (153,398) (220,000) (641,547) (1,230,000) (624,521) (360,000) (395,000) (565,000) (30,768,127) (1,119,790) (1,791,581) (3,914,530) (903,959) (743,081) (836,225) (1,010,507) (22,805,194) - 567,927 1,190,214 - - - - 4,064,165 (544,330) (399,197) (790,961) (5,032,237) (381,701) (410,572) (1,466,835) (13,965,049) - 6,116 - - - - - 292,386 55,500 7,590 325,310 4,505,937 2,800 1,300 12,500 5,655,762 1,285,026 (177,838) (3,436,828) (1,894,574) (1,449,925) (1,640,497) (3,029,842) (42,276,192) - - - - - - - 530,000 - 375,234 938,085 - - - - 3,032,926 15,848 17,420 39,676 - 3,837 6,560 7,764 740,356 15,848 392,654 977,761 - 3,837 6,560 7,764 4,303,282 4,722,777 2,651,144 3,915,884 (150,410) 92,526 438,065 (339,370) 4,484,343 9,970,904 5,484,955 9,882,261 5,724,377 2,986,824 4,545,343 6,356,626 114,852,653 14,693,681$ 8,136,099$ 13,798,145$ 5,573,967$ 3,079,350$ 4,983,408$ 6,017,256$ 119,336,996$ 2,779,944$ 1,517,858$ 3,676,106$ 821,805$ 829,907$ 1,458,079$ 1,706,170$ 24,210,126$ 773 386 24,477 122,893 - 1,093 1,497 295,944 763,989 774,071 2,678,362 1,355,675 745,010 713,237 1,174,683 18,737,495 (76,330) 89,195 82,427 (482,929) (91,545) (83,332) (209,070) (935,972) (3,424) (4,221) (21,216) 13,728 (3,644) (9,542) (8,311) (33,717) (89,124) 34,784 (106,046) (87,508) 12,712 (61,465) (39,413) (322,834) 46,075 24,255 40,841 500 46,174 53,932 57,152 506,211 641,959 918,470 2,698,845 922,359 708,707 613,923 976,538 18,247,127 3,421,903$ 2,436,328$ 6,374,951$ 1,744,164$ 1,538,614$ 2,072,002$ 2,682,708$ 42,457,253$ 445,782$ 555,491$ 584,339$ -$ 290,383$ 384,656$ 44,527$ 4,857,785$ - - - - - - - 21,807 549 - 12,307 - 3,143 1,007 3,577 (305,747) 35,508 - 117,696 - - - (620) 435,565 The accompanying notes to financial statements are an integral part of this statement. - 49 - FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 50 - (1) Summary of Significant Accounting Policies: (a) Reporting entity⎯The Florida Governmental Utility Authority (the “Authority”) was formed as a legal entity and public body pursuant to Chapters 125, 166 and 163, Florida Statutes and an Interlocal Agreement dated February 1, 1999 (the "Interlocal Agreement") initially by and between Brevard County, Lee County, Polk County, and Sarasota County (the "Authority Members"), each a local government located in the State of Florida. The Interlocal Agreement was amended and restated on December 1, 2000, by and between Citrus County, Nassau County, Polk County, and Sarasota County. Sarasota County was a member of the Interlocal Agreement, but withdrew effective August 29, 2002, after assuming ownership of the Authority's assets and liabilities related to the Sarasota Utility System. On January 16, 2003, Osceola County was accepted as a member. Osceola County has since terminated its membership and the Poinciana Utility System assets and liabilities were transferred to the Tohopekaliga Water Authority on April 30, 2007. The Citrus Utility System was transitioned to Citrus County on February 15, 2007. On October 15, 2005 Lee County rejoined the Authority subsequent to the purchase of the Lehigh Acres System. The Town of Dundee joined as a member on June 12, 2007 and subsequently withdrew on January 21, 2010. Hendry County joined as a member on February 21, 2008. Pasco County joined as a member on February 27, 2008. DeSoto County joined as a member on January 13, 2009, and terminated its membership on November 12, 2015. The purpose of the Authority is to enable the Authority Members to make the most efficient use of their common power to acquire, own, improve, operate, and maintain water and wastewater facilities. It is not expected that the Authority will have any employees. All services will be provided on a contractual basis. The Authority has adopted Governmental Accounting Standards Board (GASB) Statement No. 61, The Financial Reporting Entity: Omnibus, for the purpose of evaluating its financial statements. Based on the criteria in Statement No. 61, the Authority has determined that there are no other units that meet the criteria for inclusion in the Authority's financial statements. (b) Measurement focus, basis of accounting, and financial statement presentation⎯The accounting systems of the Authority are organized on the basis of funds, each of which is considered an accounting entity having a self-balancing set of accounts for recording its assets, deferred outflows, liabilities, deferred inflows, net position, revenues, and expenses. Since the Authority is a special purpose government involved solely in the provision of water and wastewater services to its customers on a fee basis, all funds are accounted for in Proprietary Funds. The focus of proprietary fund measurement is the determination of net income, financial position, and cash flows. The proprietary funds are used to account for operations: (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenue earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Authority operates ten utility systems (Golden Gate, Lehigh Acres, Pasco, Consolidated, Lindrick, North Fort Myers, MacDill AFB, Lake Aqua, Pasco Aqua, Unified Aqua) in ten separate funds. The Authority has one non-system specific fund that handles the administration of the interlocal agreements and also has a fund (Barefoot Bay) that services outstanding bonds from former utility systems the Authority operated years ago. All funds are considered major funds. The Authority utilizes the accrual basis of accounting in accordance with the GASB Codification. FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 51 - (1) Summary of Significant Accounting Policies: (Continued) (c) Cash and cash equivalents⎯Cash and cash equivalents consists of cash on hand and on deposit in banks and money market accounts. Investments with a maturity of three months or less when purchased are considered to be cash equivalents. (d) Investments⎯Investments are carried at fair value. (e) Accounts receivable⎯The Authority's accounts receivable consists of amounts due from consumers. The Utility Systems perform credit evaluations on their consumers and generally require collateral deposits from them. (f) Restricted assets and reserves⎯Certain assets are required to be segregated from other assets due to various bond indenture agreements. These assets are legally restricted for specific purposes such as debt service, construction, and renewals and replacements. The remaining excess of restricted assets over liabilities is reflected as restricted net position. (g) Property and plant⎯Property and plant are recorded at cost less accumulated depreciation, except contributed assets which are recorded at fair value on the date of contribution. Expenditures of $5,000 or more are capitalized. Construction period interest cost, net of interest earned on the unexpended proceeds of tax-exempt borrowings, is capitalized as part of the asset cost. Depreciation, on a straight-line basis, is charged over estimated useful lives ranging from 5 to 35 years. (h) Intangibles⎯The excess cost over fair value of acquired assets is being amortized, on a straight-line basis, over the approximate life of the related assets purchased, ranging from 20 to 30 years. The right-of-use capacity agreement for the Lindrick Utility System has an indefinite life. (i) Bond discounts and premiums⎯Bond discounts and premiums are deferred and amortized over the term of the bonds using the effective interest method. (j) Revenue recognition⎯Operating revenue consists primarily of charges for services, which are billed to customers for water, wastewater, and reclaimed water service. Billings are included in revenue as meters are read on a cycle basis throughout each month. Unbilled revenues are accrued based on estimated consumption of the most recent billing. For the MacDill AFB system, all water and wastewater revenues are earned based on the terms set forth in a formal agreement between the Authority and the Federal government. (k) Net position flow assumption⎯Sometimes the Authority will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to determine amounts reported as restricted and unrestricted net position, it is the Authority’s policy to consider restricted net position to have been used before unrestricted net position is applied. FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 52 - (1) Summary of Significant Accounting Policies: (Continued) (l) Capital grants, contributions, and impact fees⎯Impact fees are imposed by the Utility Systems to acquire, construct, equip, or expand the capacity of the water and/or wastewater facilities in order to serve new users of the facilities and new development within the service area of the Utility Systems. Impact fees revenue is recognized when the related connection services are performed. Capital contributions represent contributions of certain water distribution and wastewater collection systems. Such contributions are recognized as revenue in the period they are received. The recoverable portion of system purchase price is earned in the MacDill AFB System based on the terms set forth in the agreement with the Federal government. Capital grants represent funding from state and Federal agencies to support capital asset construction. (m) Operating and nonoperating revenues and expenses⎯Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with principal ongoing operations. The Authority's principal operating revenues are charges for water and sewer services. Operating expenses include the costs to maintain and repair the water and sewer treatment plants, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. (n) Deferred outflows/inflows of resources⎯In addition to assets, the statement of financial position will, if required, report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. It is the deferred loss on refunding. A deferred loss on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position will, if required, report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Authority has no items that qualify for reporting in this category. (o) Use of estimates⎯The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. (p) Risk management⎯The Authority participates in various insurance programs for property and casualty losses. Coverage includes property, general liability, and public officials insurance. Environmental impairment insurance for potential spills is maintained with a third party insurance carrier. Settled claims have not exceeded insurance coverage during the last three fiscal years. FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 53 - (2) Purchase and Transition of Utility Systems: In recent years, the Authority has periodically engaged in acquiring new utility systems, most recently acquiring the Lake Aqua, Pasco Aqua, and Unified Aqua systems in fiscal year 2013. No such acquisitions or transitions occurred during the year ended September 30, 2016. (3) Sale of Utility Systems: (a) Barefoot Bay utility system⎯Effective February 2, 2000, Barefoot Bay Water and Sewer District (the “District”), a component unit of Brevard County, Florida, acquired all the assets and assumed all operating liabilities of the Barefoot Bay Utility System at net book value. This transaction resulted in a gain of approximately $250,000, equal to the accumulated deficit of the Barefoot Bay Utility System at the sale date. In payment for the Barefoot Bay Utility System, the District issued Barefoot Bay Water and Sewer District Utility Revenue Bonds Series 2000 (the “Series 2000 Bonds”) in the amount of $17,135,000. The respective interest rates and maturities of the Series 2000 Bonds are identical to the Florida Governmental Utility Authority Utility System Revenue Bonds (Barefoot Bay Utility System), Series 1999 Bonds issued at the acquisition of the Barefoot Bay Utility System by the Authority and which remain outstanding. The trust estate as defined in the Series 2000 Bonds trust indenture secures the Series 2000 Bonds. This trust estate has replaced the net revenues of the Barefoot Bay Utility System as the pledged revenue source securing the Series 1999 Bonds. The Series 2000 Bonds are included in restricted assets in the combined Statement of Net Position of the Authority. FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 54 - (4) Deposits and Investments: (a) Deposits⎯At September 30, 2016, the Authority held cash on deposit with various financial institutions. In addition to insurance provided by the Federal Depository Insurance Corporation, deposits are held in banking institutions approved by the State Treasurer of the State of Florida to hold public funds. Under Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the State Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or another banking institution eligible collateral. In the event of failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. The Authority's deposits at year end are considered insured for custodial credit risk purposes. (b) Investments⎯The Authority measures and records its investments using fair value measurement guidelines established by GASB Statement No. 72. These guidelines recognize a three-tiered fair value hierarchy, as follows: Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs. At September 30, 2016, the Authority's investments consisted of the following, all of which were valued using Level 2 inputs from the above hierarchy: Types of Investments Maturities Credit Quality (Moody’s) Fair Value Municipal bonds receivable 14.00 N/A $ 10,960,000 Municipal bonds 2.79 Aa3 3,434,077 Total investments $ 14,394,077 (c) Custodial credit risk⎯For an investment, custodial credit is the risk that, in the event of the failure of the counterparty, the Authority will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. In order to manage the custodial credit risk, the Authority's investment policy specifies certain requirements to pre-qualify financial institutions and brokers/dealers and an annual review of the institutions used. (d) Credit risk⎯Credit risk is the risk that an issuer or other counter party to an investment will not fulfill its obligations. The Authority does have a formal investment policy that limits its investments to high quality investments to control credit risk, which requires diversification of investments, limited investments in securities with higher credit risks, investing in securities with varying maturities, and continuously investing a portion of the portfolio in readily available funds such as local government investment pools or money market funds. In addition, Certificates of deposit and other evidences of deposit at qualified depositories, bankers' acceptances, and commercial paper, rated in the highest tier (e.g., A-I, P-I, F-I or D-1 or higher) by a nationally recognized rating agency. The municipal bonds receivable and money market mutual funds do not have credit quality ratings. The municipal bonds receivable are insured by a financial guaranty insurance policy. (e) Interest rate risk⎯Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Authority has a formal investment policy that, except for special situations, limits investment maturities to instruments maturing within three years from purchase as a means of managing exposure to fair value losses arising from increasing interest rates. At September 30, 2016, the Plan’s municipal bonds had a weighted average duration of 2.79 years. FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 55 - (5) Accounts Receivable: Receivables at September 30, 2016, consist of the following: Non-System Specific Golden Gate Utility System Lehigh Utility System Pasco Utility System Billed customer receivables $ - $ 727,116 $ 1,672,678 $ 1,785,909 Unbilled customer receivables - 570,105 1,001,025 949,500 Special assessments - current - - 45,370 - Other receivables - - 35,902 13,605 Gross accounts receivable - 1,297,221 2,754,975 2,749,014 Less: Allowance for uncollectables - (130,943) (461,160) (351,014) Net total receivables $ - $ 1,166,278 $ 2,293,815 $ 2,398,000 Consolidated Utility System Lindrick Utility System N. Ft. Myers Utility System MacDill AFB Utility System Billed customer receivables $489,095 $ 378,429 $ 542,023 $ 1,826,861 Unbilled customer receivables 446,708 292,936 776,093 - Special assessments - current --- - Other receivables - 1,738 2,016 19,383 Gross accounts receivable 935,803 673,103 1,320,132 1,846,244 Less: Allowance for uncollectables (181,010) (125,971) (81,507) - Net total receivables $ 754,793 $ 547,132 $ 1,238,625 $ 1,846,244 Lake Aqua Utility System Pasco Aqua Utility System Unified Aqua Utility System Total Billed customer receivables $393,725 $ 451,125 $ 810,329 $ 9,077,290 Unbilled customer receivables 167,008 245,529 403,547 4,852,451 Special assessments - current --- 45,370 Other receivables 5,130 264 4,452 82,490 Gross accounts receivable 565,863 696,918 1,218,328 14,057,601 Less: Allowance for uncollectables (79,921) (153,590) (170,679) (1,735,795) Net total receivables $ 485,942 $ 543,328 $ 1,047,649 $ 12,321,806 FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 56 - (6) Capital Assets: Changes in the Authority's capital assets for the year ended September 30, 2016, were as follows: Balance October 1, 2015 Increases Decreases Balance September 30, 2016 Capital assets not being depreciated: Land $ 7,399,827 $ 320 $ - $ 7,400,147 Construction in progress 14,318,516 12,981,552 (21,201,636) 6,098,432 Total capital assets not being depreciated 21,718,343 12,981,872 (21,201,636) 13,498,579 Capital assets being depreciated: Utility plants 352,426,750 21,838,701 (52,416) 374,213,035 Accumulated depreciation (96,981,493) (13,879,710) 52,416 (110,808,787) Total capital assets being depreciated, net 255,445,257 7,958,991 - 263,404,248 Capital Assets, net $ 277,163,600 $ 20,940,863 $ (21,201,636) $ 276,902,827 Excess of cost over fair value of acquired assets $ 143,089,977 $ - $ - $ 143,089,977 Accumulated amortization (32,228,197) (4,857,785) - (37,085,982) Excess of cost over fair value of acquired assets, net 110,861,780 (4,857,785)- 106,003,995 Right of use intangible 3,273,200 - - 3,273,200 Intangible Assets, net $ 114,134,980 $ (4,857,785)$ - $ 109,277,195 Total interest expense incurred by the Authority during the current fiscal year was $22,216,770. Of this amount, $92,479 was capitalized and included as part of the cost of construction in progress. (7) Bonds and Notes Payable: (a) Revenue bonds and notes payable at September 30, 2016, are comprised of the following: Golden Gate Utility System $12,605,000 Series 2015 Serial Bonds, interest due semi-annually on January 1 and July 1 commencing July 1, 2015, principal payments due annually July 1, 2030 through 2035; interest rates ranging from 3.25% to 4.00%; secured by pledged water and wastewater revenues $ 12,605,000 $17,095,000 Series 2012 Serial Bonds, interest due semi-annually on January 1 and July 1 commencing July 1, 2013, principal payments due annually July 1, 2013 through 2029; interest rates ranging from 2.00% to 5.00%; secured by pledged water and wastewater revenues 13,885,000 $3,180,000 3.125% Series 2012 Term Bonds interest due semi-annually on January 1 and July 1 commencing July 1, 2013, principal payments due annually July 1, 2025 through 2029; secured by pledged water and wastewater revenues 3,180,000 $6,315,000 5.50% Series 2010 Term Bonds interest due semi-annually on January 1 and July 1 commencing July 1, 2011, principal payments due annually July 1, 2036 through 2040; secured by pledged water and wastewater revenues 6,315,000 FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 57 - (7) Bonds and Notes Payable: (Continued) $1,546,461 Loan Agreement CS12090902P—The Golden Gate Utility System was approved for preconstruction and construction loans by the Florida Department of Environmental Protection under the Clean Water State Revolving Loan Fund Program in the amount of $1,546,461 at an interest rate of 2.96%. The funds were used for wastewater system improvements. According to the loan agreement, 40 semi-annual payments of principal and interest are due beginning on October 15, 2004, currently in the amount of $52,237; secured by pledged water and wastewater revenues. This loan is junior and subordinate in all regards in right of payment and security to the Golden Gate Utility System Series 2015, Series 2010, and Series 2012 Bonds $ 739,328 $1,855,921 Loan Agreement DW1127010—The Golden Gate Utility System was approved for a construction loan by the Florida Department of Environmental Protection under the Drinking Water State Revolving Loan Fund Program in the amount of $1,395,175 at an interest rate of 2.86%. Amendment 1 to the loan increased the loan amount to $1,855,921 at an average interest rate of 2.85%. The funds were used for system improvements. According to the loan agreement, 40 semi-annual payments of principal and interest are due beginning on February 15, 2005, currently in the amount of $61,648; secured by pledged water and wastewater revenues. This loan is junior and subordinate in all regards in right of payment and security to the Golden Gate Utility System Series 2015, Series 2010, and Series 2012 Bonds 876,555 $2,271,100 Loan Agreement with SunTrust Equipment Finance & Leasing Corp. — The Golden Gate Utility System was approved for a preconstruction and construction loan with SunTrust Equipment Finance & Leasing Corp. in the amount of $2,271,100 at an interest rate of 2.30%. The funds are used pursuant to a Guaranteed Energy, Water and Wastewater Performance Savings Contract with Siemens for system improvements. According to the loan agreement, monthly payments of interest only are due August 25, 2016 and monthly payments of principal and interest are due beginning on August 25, 2017 through 2032. This loan is junior and subordinate in all regards in right of payment and security to the Golden Gate Utility System 2,271,100 Lehigh Acres Utility System $16,480,000 Series 2014 Serial Bonds, interest due semi-annually on April 1 and October 1 commencing April 1, 2015, principal payments due annually October 1, 2016 through 2032; interest rates ranging from 2.00% to 5.00%; secured by pledged water and wastewater revenues 16,480,000 $4,145,000 3.625% Series 2014 Term Bonds, interest due semi-annually on April 1 and October 1 commencing April 1, 2015, mandatory redemption of principal payments due annually October 1, 2033 through 2035; secured by pledged water and wastewater revenues 4,145,000 $20,465,000 Series 2012 Serial Bonds, interest due semi-annually on April 1 and October 1 commencing April 1, 2013, principal payments due annually October 1, 2015 through 2028; interest rates ranging from 2.75% to 5.00%; secured by pledged water and wastewater revenues 19,365,000 $10,615,000 5.00% Series 2012 Term Bonds interest due semi-annually on April 1 and October 1 commencing April 1, 2013, principal payments due annually October 1, 2029 through 2033; secured by pledged water and wastewater revenues 10,615,000 FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 58 - (7) Bonds and Notes Payable: (Continued) $12,535,000 5.25% Series 2010 Term Bonds interest due semi-annually on April 1 and October 1 commencing April 1, 2011, principal payments due annually October 1, 2034 through 2040; secured by pledged water and wastewater revenues $ 12,535,000 $6,705,500 Loan Agreement with SunTrust Equipment Finance & Leasing Corp. — The Lehigh Acres Utility System was approved for a preconstruction and construction loan with SunTrust Equipment Finance & Leasing Corp. in the amount of $6,705,500 at an interest rate of 2.30%. The funds are used pursuant to a Guaranteed Energy, Water and Wastewater Performance Savings Contract with Siemens for system improvements. According to the loan agreement, monthly payments of interest only are due August 25, 2016 and monthly payments of principal and interest are due beginning on August 25, 2017 through 2032. This loan is junior and subordinate in all regards in right of payment and security to the Lehigh Acres Utility System 6,705,500 Barefoot Bay Utility System $3,715,000 5.25% Series 1999 Term Bonds due October 1, 2018, subject to mandatory sinking fund requirements in varying annual principal amounts beginning October 1, 2012; secured by matching bond receivable with identical terms 1,755,000 $9,205,000 5.00% Series 1999 Term Bonds due October 1, 2029, subject to mandatory sinking fund requirements in varying annual principal amounts beginning October 1, 2019; secured by matching bond receivable with identical terms 9,205,000 Pasco Utility System $20,920,000 Series 2010B Serial Bonds interest due semi-annually on April 1 and October 1 commencing April 1, 2011, principal payments due annually October 1, 2013 through 2020; interest at rates ranging from 2.746% to 5.022%; secured by pledged water and wastewater revenues 15,385,000 $18,150,000 5.72% Series 2010B Term Bonds interest due semi-annually on April 1 and October 1 commencing April 1, 2011, principal payments due annually October 1, 2021 through 2025; secured by pledged water and wastewater revenues 18,150,000 $21,955,000 6.348% Series 2010B Term Bonds interest due semi-annually on April 1 and October 1 commencing April 1, 2011, principal payments due annually October 1, 2026 through 2030; secured by pledged water and wastewater revenues 21,955,000 $60,120,000 6.548% Series 2010B Term Bonds interest due semi-annually on April 1 and October 1 commencing April 1, 2011, principal payments due annually October 1, 2031 through 2040; secured by pledged water and wastewater revenues 60,120,000 Consolidated Utility System $1,815,000 Series 2012A Serial Bonds, interest due semi-annually on April 1 and October 1 commencing October 1, 2012, principal payments due annually October 1, 2013 through 2025; interest at rates ranging from 2.00% to 3.75%; secured by pledged water and wastewater revenues 1,695,000 $6,995,000 4.00% Series 2012A Term Bonds, interest due semi-annually on April 1 and October 1 commencing October 1, 2012, principal payments due annually October 1, 2026 through 2032; secured by pledged water and wastewater revenues 6,995,000 FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 59 - (7) Bonds and Notes Payable: (Continued) $4,250,000 5.00% Series 2012A Term Bonds, interest due semi-annually on April 1 and October 1 commencing October 1, 2012, principal payments due annually October 1, 2033 through 2037; secured by pledged water and wastewater revenues $ 4,250,000 $4,000,000 5.00% Series 2012A Term Bonds, interest due semi-annually on April 1 and October 1 commencing October 1, 2012, principal payments due annually October 1, 2038 through 2042; secured by pledged water and wastewater revenues 4,000,000 $3,580,000 4.25% Series 2012A Term Bonds, interest due semi-annually on April 1 and October 1 commencing October 1, 2012, principal payments due annually October 1, 2038 through 2042; secured by pledged water and wastewater revenues 3,580,000 $705,000 Series 2012B Serial Bonds, interest due semi-annually on April 1 and October 1 commencing October 1, 2012, principal payments due annually October 1, 2013 through 2016; interest at rates ranging from 2.00% to 2.80%; secured by pledged water and wastewater revenues 165,000 $5,000,000 4.00% Series 2012 Subordinate Bond, interest due semi-annually on June 1 and December 1 commencing December 1, 2012, principal payments of $1,000,000 due annually June 1, 2020 through 2024; seller-financed agreement is secured by pledged water and wastewater revenues 5,000,000 \$3,145,300 Loan Agreement with SunTrust Equipment Finance & Leasing Corp. — The Consolidated Utility System was approved for a preconstruction and construction loan with SunTrust Equipment Finance & Leasing Corp. in the amount of $3,145,300 at an interest rate of 2.30%. The funds are used pursuant to a Guaranteed Energy, Water and Wastewater Performance Savings Contract with Siemens for system improvements. According to the loan agreement, monthly payments of interest only are due August 25, 2016 and monthly payments of principal and interest are due beginning on August 25, 2017 through 2032. This loan is junior and subordinate in all regards in right of payment and security to the Consolidated Utility System 3,145,300 Lindrick Utility System $1,729,413 Bulk Wastewater Treatment Agreement in form of capital lease with the City of New Port Richey as amended effective October 1, 2012, due in monthly installments of $16,107 through October 1, 2022, comprised of principal and interest at a rate of 2.25% 1,097,951 $4,585,000 6.641% Series 2010 Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2010, principal payments due annually October 1, 2011 through 2020; secured by pledged water and wastewater revenues 2,715,000 $3,375,000 7.141% Series 2010 Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2010, principal payments due annually October 1, 2021 through 2025; secured by pledged water and wastewater revenues 3,375,000 $4,255,000 7.630% Series 2010 Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2010, principal payments due annually October 1, 2026 through 2030; secured by pledged water and wastewater revenues 4,255,000 FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 60 - (7) Bonds and Notes Payable: (Continued) $5,445,000 7.880% Series 2010 Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2010, principal payments due annually October 1, 2031 through 2035; secured by pledged water and wastewater revenues $ 5,445,000 $7,005,000 8.080% Series 2010 Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2010, principal payments due annually October 1, 2036 through 2040; secured by pledged water and wastewater revenues 7,005,000 $2,094,600 Loan Agreement with SunTrust Equipment Finance & Leasing Corp. — The Lindrick Utility System was approved for a preconstruction and construction loan with SunTrust Equipment Finance & Leasing Corp. in the amount of $2,094,600 at an interest rate of 2.30%. The funds are used pursuant to a Guaranteed Energy, Water and Wastewater Performance Savings Contract with Siemens for system improvements. According to the loan agreement, monthly payments of interest only are due August 25, 2016 and monthly payments of principal and interest are due beginning on August 25, 2017 through 2032. This loan is junior and subordinate in all regards in right of payment and security to the Lindrick Utility System 2,094,600 North Fort Myers Utility System $9,965,000 Series 2010A Serial Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2010, principal payments due annually October 1, 2013 through 2020; interest at rates ranging from 2.50% to 3.75%; secured by pledged water and wastewater revenues 7,125,000 $9,175,000 6.584% Series 2010B Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2010, principal payments due annually October 1, 2021 through 2025; secured by pledged water and wastewater revenues 9,175,000 $11,365,000 6.884% Series 2010B Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2010, principal payments due annually October 1, 2026 through 2030; secured by pledged water and wastewater revenues 11,365,000 $31,935,000 7.084% Series 2010B Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2010, principal payments due annually October 1, 2031 through 2040; secured by pledged water and wastewater revenues 31,935,000 $994,500 Loan Agreement with SunTrust Equipment Finance & Leasing Corp. — The North Fort Myers Utility System was approved for a preconstruction and construction loan with SunTrust Equipment Finance & Leasing Corp. in the amount of $994,500 at an interest rate of 2.30%. The funds are used pursuant to a Guaranteed Energy, Water and Wastewater Performance Savings Contract with Siemens for system improvements. According to the loan agreement, monthly payments of interest only are due August 25, 2016 and monthly payments of principal and interest are due beginning on August 25, 2017 through 2032. This loan is junior and subordinate in all regards in right of payment and security to the North Fort Myers Utility System 994,500 MacDill AFB Utility System $17,715,314 6.00% seller-financed purchase price liability due in monthly installments of $128,284, recorded as offset against utility service charges, March 1, 2011 through February 1, 2031; secured by utility plant, infrastructure, and equipment 14,830,665 FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 61 - (7) Bonds and Notes Payable: (Continued) Lake Aqua Utility System $3,310,000 Series 2013A Serial Bonds interest due semi-annually on April 1 and October 1 commencing October 1 2013, principal payments due annually October 1, 2014 through 2023; interest at rates ranging from 2.00% to 3.375%; secured by pledged water and wastewater revenues $ 2,995,000 $5,525,000 4.25% Series 2013A Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2013, principal payments due annually October 1, 2024 through 2033; secured by pledged water and wastewater revenues 5,525,000 $5,615,000 5.00% Series 2013A Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2013, principal payments due annually October 1, 2034 through 2040; secured by pledged water and wastewater revenues 5,615,000 $3,045,000 4.50% Series 2013A Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2013, principal payments due annually October 1, 2041 through 2043; secured by pledged water and wastewater revenues 3,045,000 $595,000 2.35% Series 2013B Serial Bonds interest due semi-annually on April 1 and October 1 commencing October 1 2013, principal payments due annually October 1, 2014 through 2016; secured by pledged water and wastewater revenues 200,000 $35,000 Loan Agreement WW011200—The Lake Aqua Utility System was approved for preconstruction and construction loans by the Florida Department of Environmental Protection under the Clean Water State Revolving Loan Fund Program in the amount of $35,000 at an interest rate of 1.50%. The funds were used for wastewater system improvements. According to the loan agreement, 40 semi-annual payments of principal and interest are due beginning on July 15, 2018, currently in the amount of $1,048; secured by pledged water and wastewater revenues. This loan is junior and subordinate in all regards in right of payment and security to the Lake Aqua Utility System Series 2013 Bonds 32,057 Pasco Aqua Utility System $3,860,000 Series 2013A Serial Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2013, principal payments due annually October 1, 2014 through 2023; interest at rates ranging from 2.00% to 3.50%; secured by pledged water and wastewater revenues 3,385,000 $6,165,000 4.25% Series 2013A Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2013, principal payments due annually October 1, 2024 through 2033; secured by pledged water and wastewater revenues 6,165,000 $6,260,000 5.00% Series 2013A Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2013, principal payments due annually October 1, 2034 through 2040; secured by pledged water and wastewater revenues 6,260,000 $3,390,000 4.50% Series 2013A Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2013, principal payments due annually October 1, 2041 through 2043; secured by pledged water and wastewater revenues 3,390,000 $465,000 2.40% Series 2013B Serial Bonds interest due semi-annually on April 1 and October 1 commencing October 1 2013, principal payments due annually October 1, 2014 to October 1, 2016; secured by pledged water and wastewater revenues 160,000 FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 62 - (7) Bonds and Notes Payable: (Continued) Unified Aqua Utility System $6,370,000 Series 2013A Serial Bonds interest due semi-annually on April 1 and October 1 commencing October 1 2013, principal payments due annually October 1, 2014 through 2025; interest at rates ranging from 2.00% to 4.00%; secured by pledged water and wastewater revenues $ 6,080,000 $2,390,000 3.75% Series 2013A Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2013, principal payments due annually October 1, 2026 through 2028; secured by pledged water and wastewater revenues 2,390,000 $4,640,000 4.00% Series 2013A Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2013, principal payments due annually October 1, 2029 through 2033; secured by pledged water and wastewater revenues 4,640,000 $12,665,000 4.25% Series 2013A Term Bonds interest due semi-annually on April 1 and October 1 commencing October 1, 2013, principal payments due annually October 1, 2034 through 2043; secured by pledged water and wastewater revenues 12,665,000 $1,260,000 2.00% Series 2013B Serial Bonds interest due semi-annually on April 1 and October 1 commencing October 1 2013, principal payments due annually October 1, 2014 through 2016; secured by pledged water and wastewater revenues 430,000 Bonds and notes payable at September 30, 2016 429,507,556 Add: unamortized bond premiums, net of unamortized bond discounts 3,832,719 Less: current portion of bonds and notes payable (10,793,496) Long-term bonds and notes payable at September 30, 2016, net $ 422,546,779 For the above debt instruments secured by pledged water and wastewater revenues, amounts pledged consist of the respective system’s operating revenues for the course of the long-term debt payments. The debt instruments were issued to purchase the utility systems and to fund various capital improvements. The amounts and terms of the commitments are clearly stated in the detailed descriptions above for each debt instrument. FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 63 - (7) Bonds and Notes Payable: (Continued) Below is a table comparing the current year’s pledged revenue (including revenue from the sale of water and wastewater, meter tapping, service charges, miscellaneous operating revenue, and any amounts contributed from capitalized interest and rate stabilization accounts) to the current year’s principal and interest (net of Build America Bond subsidies received) required debt service. Further details may be found in the Pledged Revenue Coverage tables in the Statistical Section. Name of System Water, Wastewater and Other Revenue Debt Service Principal Interest Golden Gate $ 7,902,396 $ 1,167,059 $ 1,584,474 Lehigh Acres 14,342,314 1,880,000 2,718,738 Pasco 19,254,181 2,910,000 4,763,331 Consolidated 5,870,824 615,000 1,105,108 Lindrick 4,528,904 500,000 1,173,112 North Fort Myers 11,743,355 1,290,000 2,702,054 Lake Aqua 3,748,148 365,000 739,132 Pasco Aqua 3,854,826 405,000 831,968 Unified Aqua 7,506,629 575,000 1,004,857 Totals $ 78,751,577 $ 9,707,059 $ 16,622,774 (b) Changes in bonds and notes payable⎯Activity in bonds and notes payable for the year ended September 30, 2016, was as follows: Beginning Balance Additions Reductions Ending Balance Due Within One Year Secured by pledged water and wastewater revenues Bonds 410,030,000$ -$ (29,270,000)$ 380,760,000$ 9,175,000$ Seller-Financed Notes 5,000,000 - - 5,000,000 - State Revolving Loans 1,792,943 32,057 (177,059) 1,647,940 182,230 Subtotal Debt Secured by Pledged Water & Wastewater Revenues 416,822,943$ 32,057$ (29,447,059)$ 387,407,940$ 9,357,230$ Secured by other (county bonds, assets) Bonds 11,490,000 - (530,000) 10,960,000 555,000 Capital Leases 1,264,498 - (166,547) 1,097,951 170,333 Seller-Financed Notes 15,294,981 160,206 (624,521) 14,830,667 667,733 Notes Payable - 15,211,000 - 15,211,000 43,200 Subtotal other debt 28,049,479 15,371,206 (1,321,068) 42,099,618 1,436,266 444,872,422$ 15,403,263$ (30,768,127)$ 429,507,558$ 10,793,496$ FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 64 - (7) Bonds and Notes Payable: (Continued) (c) Debt service requirements to maturity are as follows at September 30, 2016: Barefoot Bay Utility System September 30 Principal Interest Total Debt Service 2017 $ 555,000 $ 552,387 1,107,387 2018 585,000 523,250 1,108,250 2019 615,000 492,537 1,107,537 2020 650,000 460,250 1,110,250 2021 680,000 427,750 1,107,750 2022 – 2026 3,950,000 1,593,000 5,543,000 2027 – 2030 3,925,000 502,750 4,427,750 Totals $ 10,960,000 $ 4,551,924 $ 15,511,924 Golden Gate Utility System September 30 Principal Interest Total Debt Service 2017 $ 1,213,230 $ 1,591,934 $ 2,805,164 2018 1,296,552 1,545,097 2,841,649 2019 1,360,429 1,495,728 2,856,157 2020 1,437,566 1,433,097 2,870,663 2021 1,480,968 1,402,110 2,883,078 2022 – 2026 8,126,938 6,028,415 14,155,353 2027 – 2031 9,698,100 4,610,769 14,308,869 2032 – 2036 10,073,200 2,695,732 12,768,932 2037 – 2040 5,185,000 731,775 5,916,775 Totals $ 39,871,983 $ 21,534,657 $ 61,406,640 Lehigh Utility System September 30 Principal Interest Total Debt Service 2017 $ 1,900,000 $ 2,872,946 $ 4,772,946 2018 2,074,800 2,803,367 4,878,167 2019 2,193,900 2,722,055 4,915,955 2020 2,309,000 2,652,578 4,961,578 2021 2,426,400 2,579,478 5,005,878 2022 – 2026 14,338,900 11,226,463 25,565,363 2027 – 2031 18,144,400 8,343,462 26,487,862 2032 – 2036 14,868,100 4,704,000 19,572,100 2037 – 2041 11,590,000 1,887,376 13,477,376 Totals $ 69,845,500 $ 39,791,725 $ 109,637,225 FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 65 - (7) Bonds and Notes Payable: (Continued) Pasco Utility System September 30 Principal Interest Total Debt Service 2017 $ 2,910,000 $ 7,069,355 $ 9,979,355 2018 2,985,000 6,953,886 9,938,886 2019 3,070,000 6,824,994 9,894,994 2020 3,160,000 6,684,633 9,844,633 2021 3,260,000 6,532,258 9,792,258 2022 – 2026 18,150,000 29,842,135 47,992,135 2027 – 2031 21,955,000 23,976,441 45,931,441 2032 – 2036 26,940,000 16,301,574 43,241,574 2037 – 2041 33,180,000 6,698,603 39,878,603 Totals $ 115,610,000 $ 110,883,879 $ 226,493,879 Consolidated Utility System September 30 Principal Interest Total Debt Service 2017 $ 235,600 $ 1,177,440 $ 1,413,040 2018 157,400 1,170,710 1,328,110 2019 183,100 1,166,912 1,350,012 2020 1,207,300 1,162,314 2,369,614 2021 1,174,500 1,116,865 2,291,365 2022 – 2026 5,168,000 4,920,921 10,088,921 2027 – 2031 6,337,300 3,990,197 10,327,497 2032 – 2036 4,922,100 2,845,363 7,767,463 2037 – 2041 6,195,000 1,707,475 7,902,475 2042 – 2043 3,250,000 228,475 3,478,475 Totals $ 28,830,300 $ 19,486,672 $ 48,316,972 Lindrick Utility System September 30 Principal Interest Total Debt Service 2017 $ 672,733 $ 1,812,166 $ 2,484,899 2018 712,005 1,774,881 2,486,886 2019 756,966 1,735,755 2,492,721 2020 804,916 1,694,756 2,499,672 2021 855,358 1,651,541 2,506,899 2022 – 2026 4,215,973 7,533,117 11,749,090 2027 – 2031 5,519,600 6,058,906 11,578,506 2032 – 2036 5,445,000 4,159,376 9,604,376 2037 – 2041 7,005,000 1,756,188 8,761,188 Totals $ 25,987,551 $ 28,176,686 $ 54,164,237 FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 66 - (7) Bonds and Notes Payable: (Continued) North Fort Myers Utility System September 30 Principal Interest Total Debt Service 2017 $ 1,294,200 $ 3,915,137 $ 5,209,337 2018 1,382,400 3,876,066 5,258,466 2019 1,453,400 3,831,334 5,284,734 2020 1,534,400 3,782,578 5,316,978 2021 1,610,500 3,727,415 5,337,915 2022 – 2026 9,479,800 17,167,792 26,647,592 2027 – 2031 11,824,300 13,763,468 25,587,768 2032 – 2036 14,255,500 9,394,235 23,649,735 2037 – 2041 17,760,000 3,887,344 21,647,344 Totals $ 60,594,500 $ 63,345,369 $ 123,939,869 MacDill AFB Utility System September 30 Principal Interest Total Debt Service 2017 $ 667,733 $ 871,675 $ 1,539,408 2018 708,918 830,491 1,539,409 2019 752,642 786,767 1,539,409 2020 799,063 740,346 1,539,409 2021 848,348 691,061 1,539,409 2022 – 2026 5,094,208 2,602,837 7,697,045 2027 – 2031 5,959,753 839,304 6,799,057 Totals $ 14,830,665 $ 7,362,481 $ 22,193,146 Lake Aqua Utility System September 30 Principal Interest Total Debt Service 2017 $ 365,000 $ 739,131 $ 1,101,131 2018 407,057 731,131 1,138,188 2019 385,000 723,631 1,108,631 2020 390,000 715,450 1,105,450 2021 400,000 705,700 1,105,700 2022 – 2026 2,210,000 3,328,226 5,538,226 2027 – 2031 2,690,000 2,846,226 5,536,226 2032 – 2036 3,320,000 2,218,426 5,538,426 2037 – 2041 4,200,000 1,335,625 5,535,625 2042 – 2044 3,045,000 278,100 3,323,100 Totals $ 17,412,057 $ 13,621,646 $ 31,033,703 FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 67 - (7) Bonds and Notes Payable: (Continued) Pasco Aqua Utility System September 30 Principal Interest Total Debt Service 2017 $ 405,000 $ 831,965 $ 1,236,965 2018 410,000 823,225 1,233,225 2019 425,000 810,925 1,235,925 2020 435,000 798,175 1,233,175 2021 445,000 787,300 1,232,300 2022 – 2026 2,460,000 3,712,476 6,172476 2027 – 2031 3,000,000 3,173,501 6,173,501 2032 – 2036 3,705,000 2,472,850 6,177,850 2037 – 2041 4,685,000 1,488,000 6,173,000 2042 – 2044 3,390,000 309,600 3,699,600 Totals $ 19,360,000 $ 15,208,017 $ 34,568,017 Unified Aqua Utility System September 30 Principal Interest Total Debt Service 2017 $ 575,000 $ 1,004,856 $ 1,579,856 2018 590,000 993,356 1,583,356 2019 605,000 975,656 1,580,656 2020 620,000 962,800 1,582,800 2021 630,000 948,850 1,578,850 2022 – 2026 3,490,000 4,412,062 7,902,062 2027 – 2031 4,135,000 3,766,427 7,901,427 2032 – 2036 5,025,000 2,881,702 7,906,702 2037 – 2041 6,170,000 1,736,126 7,906,126 2042 – 2044 4,365,000 376,126 4,741,126 Totals $ 26,205,000 $ 18,057,961 $ 44,262,961 (8) Commitments and Contingencies: (a) U.S. Water/Wade Trim, LLC⎯Contracted to perform water treatment, water distribution, wastewater treatment, wastewater disposal and control, and other related services for all utility systems of the Authority. With the exception of Golden Gate and Lehigh Acres, both of which had contract effective dates of October 1, 2011, the contract terms started on the effective date of the acquisitions of each system, and expire on varying dates from September 30, 2018, to September 30, 2020. U.S. Water receives an annual fixed fee for services provided to the systems of $23,905,395, paid in monthly installments. Fees in future years are adjusted as defined in the Operations and Billing Contract. The Operations and Billing Contract also provides for additional payments to U.S. Water for renewals and replacements and for capital improvements. Such additional payments are to be at U.S. Water’s cost plus a specified profit percentage. Total amounts paid to U.S. Water for the year ended September 30, 2016 for all services were $34,465,012. At September 30, 2016, amounts payable to U.S. Water totaled $5,317,832. FLORIDA GOVERNMENTAL UTILITY AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016 - 68 - (8) Commitments and Contingencies: (Continued) (b) Government Services Group, Inc.⎯In order to execute the powers of the Authority pursuant to the Interlocal Agreement and the responsibilities of the Authority, the Authority retained Government Services Group, Inc. (GSG), a private contractor, for the overall management of the Authority. The Management Services Agreement between the Authority and GSG defines the general functions GSG will carry out and expires September 30, 2020, with the exception of the agreement defining functions relating to the MacDill AFB System, which expires September 30, 2021. The Authority has the option to extend the term of the Management Services Agreement. GSG receives an annual base fixed fee for general administrative services provided to the Authority of $3,618,877, as well as an annual based fixed fee for capital improvement program administrative fees of $1,236,290. Additional payments are made for other services approved by the Authority's Board of Directors. Total amounts paid to GSG for the year ended September 30, 2016 were $5,994,030. At September 30, 2016, amounts payable to GSG totaled $215,918. (c) North Fort Myers System contingent payments⎯As part of the purchase agreement for the North Fort Myers System, the Authority agreed to pay the seller 50% of impact fees collected for a period of 20 years from the closing date in June 2010 or until $25 million has been paid to the seller, whichever occurs first. As of September 30, 2016, $568,350 has been incurred in accordance with this agreement, $93,977 of which was incurred during the year ended September 30, 2016. The Authority also entered into a settlement with a developer of a specific subdivision whereby the developer is entitled to $635 per lot (less a 2.0% handling fee) which impact fees are paid. Total amounts incurred under this agreement at September 30, 2016, were $72,044, $5,686 which was incurred during the year ended September 30, 2016. (d) Contracts⎯Commitments on outstanding contracts for improvements and maintenance of the Utility Systems totaled $20,709,541 at September 30, 2016. (e) Other pending litigation⎯The Utility Systems are contingently liable with respect to regulatory inquiries and other claims incidental to the ordinary course of its operations. In the opinion of management, based on the advice of legal counsel, the ultimate disposition of these regulatory inquiries and claims will not have a material adverse effect on the financial position or results of operations of the Utility Systems. (9) Related Party Transactions: Prior to December 31, 2001, Government Services Group, Inc. (GSG) was partially owned by Nabors, Giblin & Nickerson, P.A., (NGN) which is serving as Bond Counsel with respect to the Authority’s bond issues and Special Authority Counsel of each of the Utility Systems. This direct interest ended through a buyout of NGN shares by GSG. Statistical SectionTAB 3 - 69 - STATISTICAL SECTION This part of the Florida Governmental Utility Authority’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health. In some instances, data is not available for all years. In future financial statements, we will add the current year plus continue to report on the years reflected in these schedules until a full ten years of data is presented. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time Net Position by Component 70 Changes in Net Position 71 Summary of Ten Largest Single Water Users 72 Debt Capacity These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Ratios of Outstanding Debt by Fund Type 73 Pledged Revenue Coverage 74 – 75 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. Demographic and Economic Statistics 76 – 77 Principal Employers 78 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. Operating Indicators by Function 79 Capital Asset Statistics by Function 80 – 82 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. Description2007 2008 2009 2010 2011 2012 2013 2014 2015 2016(Restated)Primary GovernmentBusiness-type activitiesNet Investment in Capital Assets 16,432,401$ 17,914,712$ 13,992,783$ 4,939,605$ (14,035,110)$ (6,533,854)$ (17,013,072)$ (17,843,579)$ (17,311,873)$ (16,569,953)$ Restricted for capital projects 5,091,960 2,973,351 4,629,009 13,652,745 11,925,265 6,330,759 8,110,836 9,906,166 10,785,462 12,586,073 Restricted for debt service 1,924,309 2,250,265 2,574,639 3,978,362 19,055,348 21,685,846 26,687,847 28,105,157 28,574,185 29,626,800 Unrestricted 3,724,891 5,523,306 6,047,544 8,122,236 13,476,660 17,814,769 27,229,511 34,211,857 42,415,307 52,844,021 Total Business Type Activities Net Position 27,173,561$ 28,661,634$ 27,243,975$ 30,692,948$ 30,422,163$ 39,297,520$ 45,015,122$ 54,379,601$ 64,463,081$ 78,486,941$ Total Primary Government Net Position 27,173,561$ 28,661,634$ 27,243,975$ 30,692,948$ 30,422,163$ 39,297,520$ 45,015,122$ 54,379,601$ 64,463,081$ 78,486,941$ The Florida Governmental Utility Authority has no governmental activities. All funds are accounted for in enterprise funds.Note: Implementation of Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities. Florida Governmental Utility AuthorityNet Position by ComponentLast Ten Fiscal Years(accrual basis of accounting)(amounts expressed in whole dollars)- 70 - FISCAL YEARDescription 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016RestatedOperating RevenuesWater and wastewater revenue (1) 28,467,322$ 15,660,843$ 25,321,022$ 34,618,769$ 50,615,714$ 55,545,185$ 66,319,456$ 72,578,666$ 76,532,418$ 80,618,152$ Other operating revenues 683,818 212,766 73,952 106,801 97,369 214,781 2,690,929 3,112,652 3,413,729 2,892,330 Special assessments 74,773 86,195 39,759 362 - - - - - - Total operating revenues 29,225,913$ 15,959,804$ 25,434,733$ 34,725,932$ 50,713,083$ 55,759,966$ 69,010,386$ 75,691,318$ 79,946,147$ 83,510,482$ Operating ExpensesOperating and management services 10,525,349$ 6,533,699$ 10,064,112$ 15,281,545$ 20,497,628$ 22,778,812$ 31,489,919$ 35,783,063$ 36,224,092$ 37,143,136$ Other operating expenses 3,788,543 2,841,753 3,985,936 3,222,587 4,062,030 4,374,611 3,193,505 3,372,047 2,987,500 3,419,725 Depreciation and amortization (2) 6,852,093 4,638,000 7,843,407 10,617,680 14,516,388 13,552,276 16,291,959 17,836,854 18,191,389 18,737,495 Total Operating expenses 21,165,985$ 14,013,452$ 21,893,455$ 29,121,812$ 39,076,046$ 40,705,699$ 50,975,383$ 56,991,965$ 57,402,981$ 59,300,356$ Operating income (loss) 8,059,928$ 1,946,352$ 3,541,278$ 5,604,120$ 11,637,037$ 15,054,267$ 18,035,003$ 18,699,353$ 22,543,166$ 24,210,126$ Nonoperating revenues (expenses)Miscellaneous (rental, investment, scrap)13,100,362$ 2,998,645$ 2,005,572$ 2,058,884$ 214,315$ -$ 153,394$ 1,136,507$ 979,302$ 1,050,212$ Operating grants- - - - - - - - - 292,386 Interest expense (net) (7,860,464) (5,154,598) (8,319,821) (11,380,492) (14,250,220) (15,605,019) (17,693,700) (18,120,059) (18,562,920) (17,468,033) Debt issuance costs - - - - - (508,069) (2,870,865) - (621,419) (153,398) Loss on sale of system (transfer of net assets) (3, 4) (80,868,281) - - - - - - - - - Total nonoperating revenues (expenses) (75,628,383)$ (2,155,953)$ (6,314,249)$ (9,321,608)$ (14,035,905)$ (16,113,088)$ (20,411,171)$ (16,983,552)$ (18,205,037)$ (16,278,833)$ Income (loss) before capital contributions (67,568,455)$ (209,601)$ (2,772,971)$ (3,717,488)$ (2,398,868)$ (1,058,821)$ (2,376,169)$ 1,715,801$ 4,338,129$ 7,931,293$ Capital contributionsCapital grants -$ 110,058$ 17,500$ -$ 10,715,974$ 7,220,049$ 4,172,288$ 3,653,010$ 2,916,079$ 2,977,457$ Recoverable portion of purchase price - - - - 888,426 1,523,016 1,523,016 1,523,016 1,523,016 1,528,480 Impact fees and Developer contributions 3,795,748 1,587,616 1,337,812 7,166,457 776,181 1,191,113 2,398,466 2,472,649 1,306,256 1,586,630 Total capital contributions 3,795,748$ 1,697,674$ 1,355,312$ 7,166,457$ 12,380,581$ 9,934,178$ 8,093,771$ 7,648,674$ 5,745,351$ 6,092,567$ Increase (decrease) in net position (63,772,707)$ 1,488,073$ (1,417,659)$ 3,448,969$ 9,981,713$ 8,875,357$ 5,717,602$ 9,364,475$ 10,083,480$ 14,023,860$ Net position, beginning of year90,946,268 27,173,561 28,661,634 27,243,975 20,440,450 30,422,163 39,297,520 45,015,122 54,379,601 64,463,081 Net position, end of year 27,173,561$ 28,661,634$ 27,243,975$ 30,692,948$ 30,422,163$ 39,297,520$ 45,015,122$ 54,379,601$ 64,463,081$ 78,486,941$ Notes: (1) Water and wastewater revenue is net of bad debt. (2) Depreciation and amortization for system assets and goodwill. (3) The Loss on sale of system amount under the Expenses section represents the net asset value of those systems that transitioned from FGUA ownship. (4) During fiscal year 2007 the Poinciana and Citrus Utility systems were tranfered to their local governmental authorities.Florida Governmental Utility AuthorityChanges in Net PositionLast Ten Fiscal Years(accrual basis of accounting)(amounts expressed in whole dollars)- 71 - System Sales Revenue % of Total Sales Revenue System Sales Revenue % of Total Sales Revenue GOLDEN GATE CONSOLIDATED PACIFICA NAPLES LLC 377,168$ 5.06% PARADISE LAKES CONDO. ASSOC. 232,162$ 3.98% PAR ONE HOMEOWNERS 274,610 3.69% ALTA TERRA BELLA, LP 58,884 1.01% CORAL PALMS NAPLES APT LLC 261,610 3.51% NORTH BAY S.R. 54 FACILITY 45,141 0.77% 4300 ATOLL COURT LLC 109,257 1.47% THE FOUNTAINS AT PARADISE LAKES 30,629 0.53% RANIERI (QUALITY INN) 78,700 1.06% WALMART STORES EAST, LP 28,168 0.48% TILDEN FUNDAMENTAL PL APTS 54,877 0.74% DENHAM OAKS ELEMENTARY 27,335 0.47% BENCHMARK WAVERLEY PLACE 53,075 0.71% TRINITY INVESTMENT GROUP 21,384 0.37% WAVA, INC 52,493 0.70% GULFSIDE ELEMENTARY 20,356 0.35% NAPLES COIN LAUNDRY, INC 51,946 0.70% FMC LAND O' LAKES, LLC 16,878 0.29% PIKUS PROPERTY MGMT, LLC 50,492 0.68% TERRA BELLA HOMEOWNERS 16,691 0.29% TOTAL $ 1,364,228 18.32% TOTAL $ 497,628 8.54% LEHIGH ACRES LINDRICK LEHIGH REGIONAL MED CENTER 128,526$ 0.95% GULF HARBOR CONDOS 319,845$ 7.11% WALMART STORES 87,998 0.65% NEW PORT COLONY 124,992 2.78% SUNSHINE VILLAS 69,478 0.51% LANDINGS OF ST ANDREWS 95,179 2.12% PHOENIX ASSOCIATES OF NAPLES 63,741 0.47% SEAVIEW PLACE CONDOMINIUMS 87,461 1.94% HOPE HOSPICE 48,424 0.36% LANDINGS AT SEA FOREST 72,640 1.61% FOUNTAIN CREST RETIREMENT 44,816 0.33% SEA CASTLE CONDO 47,829 1.06% TORTUGA PRESERVE ELEMENTARY 42,113 0.31% HARBOR VILLAS CONDO 47,284 1.05% EAST LEE COUNTY HIGH SCHOOL 41,286 0.30% MARINERS WAY OF NPR 41,846 0.93% LEHIGH ELEMENTARY SCHOOL 39,208 0.29% WINDWARD COVE CONDO 39,008 0.87% LEHIGH HIGH SCHOOL 36,859 0.27% HEATHER COVE 29,461 0.65% TOTAL $ 602,449 4.44%TOTAL $ 905,545 20.12% PASCO NFMU PALMS AT WYNDTREE 171,278$ 0.93% LEE COUNTY BOCC - UTILITIES 1,694,977$ 16.88% PARK AT BARRINGTON, LLC 161,500 0.87% BUCCANEER ESTATES 434,113 3.73% CRP HOLDINGS CSS LLC 103,728 0.56% ISLAND VISTA ESTATES LLC 294,052 2.53% BCM TRINITY, LLC 98,639 0.53% MHC WINDMILL VILLAGE 258,265 2.22% DISTRICT SCHOOL BOARD PASCO 98,415 0.53% SIX LAKES COUNTRY CLUB IN 220,642 1.90% TANDEM HEALTH CARE 93,992 0.51% THE HERITAGE 194,102 1.67% EASTLAKE REHAB&CARE CENTER LLC 87,288 0.47% PIONEER VILLAGE 136,979 1.18% PARK AT ASHLEY PLACE LP 75,932 0.41% SERENDIPITY MOBIL HOME PARK 133,239 1.14% HOLIDAY HOTEL AND RESORT LLC 74,225 0.40% CITY OF CAPE CORAL 103,563 0.89% WAL-MART STORE, INC. 66,197 0.36% FOUNTAIN VIEW RV 68,040 0.58% TOTAL $ 1,031,194 5.57%TOTAL $ 3,537,972 32.72% PASCO AQUA LAKE AQUA SYBRA INC #1310 12,512$ 0.33% S CHASE HOMEOWNERS ASSOC. 24,704$ 0.69% SUNSHINE INVESTMENT 8,791 0.23% MHC OPERATING LP 17,874 0.50% AMERICAN CONDOMINIUM PARKS, INC 8,409 0.22% BILL BRYAN CHRYSLERPLYMOUTH 16,045 0.45% FLORIDA VILLAGE SQUARE 6,467 0.17% JACOBSON 15,693 0.44% AAA 6,433 0.17% MUNN SALES SERVICE INC 8,059 0.22% SERGIOS REST 6,132 0.16% TRAN 6,361 0.18% ROBINSON 3,914 0.10% S CHASE HOMEOWNERS ASSN 4,686 0.13% JASMINE LAKES CIVIC ASSN 3,891 0.10% GORDON 4,532 0.13% LAND TRUST FOR 7731 JUDITH 3,746 0.10% CIRCLE K STORES INC. 4,320 0.12% HOPKINS 2,965 0.08% L'HOMMEDIEU 4,120 0.11% TOTAL $ 63,260 1.66%TOTAL $ 106,394 2.97% UNIFIED AQUA SOUTH SEAS RESORT 381,524$ 5.36% BFI WASTE SYSTEMS OF N A 267,294 3.76% FLA REFUSE SERVICE INC 124,990 1.76% BEACH VILLAS III CONDO 52,326 0.74% SUNSET BEACH VILLAS 48,669 0.68% LAND'S END VILLAGE 41,757 0.59% BAYSIDE VILLAS CONDO 36,542 0.51% TENNIS VILLAS 33,628 0.47% RIVERBEND CONDO ASSN 30,448 0.43% UNITED PARCEL SERVICE 30,326 0.43% TOTAL $ 1,047,504 14.73% Florida Governmental Utility Authority Summary of Top Ten Customers (Based on Sales Revenue) September 30, 2016 - 72 - Fiscal Year Water & Wastewater Revenue Bonds (1) Other Debt (2) Capital Leases Total Primary Government Percentage of Personal Income Per Utility Customer 2007 145,239,428 - - 145,239,428 na 1,519 2008 143,294,162 - - 143,294,162 na 4,865 2009 252,014,267 - - 252,014,267 na 4,295 2010 318,184,200 9,564,794 - 327,748,994 na 4,117 2011 343,764,200 3,003,105 - 346,767,305 na 4,316 2012 343,625,000 7,644,540 - 351,269,540 na 4,030 2013 435,550,000 7,282,125 1,586,568 444,418,693 na 4,097 2014 397,170,000 6,964,979 1,427,343 405,562,322 na 3,639 2015 410,030,000 6,792,943 1,264,498 418,087,441 na 3,742 2016 380,760,000 21,858,940 1,097,951 403,716,891 na 3,538 Notes: (2) Other Debt includes State Revolving Loan Fund (SRF) debt, the SunTrust Energy Project debt, and Seller-Financed Notes. The MacDill AFB Seller-Financed note is excluded because it is fully-subsidized, the note is not secured by revenues, and because the AFB is considered one customer, which would skew the "per utility customer" ratio. See Note 7 for MacDill debt balance. (1) This amount excludes the Barefoot Bay bonds as the FGUA acts as a pass-through agent only. See Note 7 for Barefoot Bay bonds balance. Florida Governmental Utility Authority Ratios of Outstanding Debt by Type Last Ten Fiscal Years (amounts expressed in whole dollars) Business-Type Activities - 73 - Debt Secured by Pledged Revenue Fiscal Year Name of System Principal Interest (3) Coverage Principal Interest Coverage 2007 Golden Gate 6,498,238 2,823,225 3,675,013 801,652 1,947,323 1.34 74,773 54,866 14,272 1.08 Lehigh Acres 12,070,977 5,047,070 7,023,907 1,170,000 3,003,803 1.68 - - - - Total $18,569,215 $7,870,295 $10,698,920 $1,971,652 $4,951,126 1.55 $74,773 $54,866 $14,272 1.08 2008 Golden Gate 6,066,118 3,172,185 2,893,933 795,642 1,918,578 1.07 86,195 59,240 8,255 1.28 Lehigh Acres 10,707,788 6,020,572 4,687,216 1,305,000 2,970,503 1.10 - - - - Total $16,773,906 $9,192,757 $7,581,149 $2,100,642 $4,889,081 1.08 $86,195 $59,240 $8,255 1.28 2009 Golden Gate 5,704,070 3,079,882 2,624,188 829,749 1,360,084 1.20 39,759 90,145 3,513 0.42 Lehigh Acres 10,594,737 6,337,683 4,257,054 1,335,000 2,192,343 1.21 - - - - Pasco Systems (4) 9,258,799 4,612,090 4,646,709 - 2,909,619 1.60 - - - - Total $25,557,606 $14,029,655 $11,527,951 $2,164,749 $6,462,046 1.34 $39,759 $90,145 $3,513 0.42 2010 Golden Gate 6,141,890 2,877,879 3,264,011 864,474 1,874,800 1.19 - - - - Lehigh Acres 10,200,210 5,428,303 4,771,907 1,380,000 2,970,455 1.10 - - - - Pasco Systems 14,494,924 4,612,090 9,882,834 - 4,930,583 2.00 - - - - Consolidated (5) 656,710 425,806 230,904 - 176,400 1.31 - - - - Lindrick (5) 2,020,189 1,137,864 882,325 - 676,921 1.30 - - - - North Fort Myers (5) 1,174,236 674,730 499,506 - 401,866 1.24 - - - - Total $34,688,159 $15,156,672 $19,531,487 $2,244,474 $11,031,026 1.47 - - - - 2011 Golden Gate 6,745,712 3,112,442 3,633,270 897,072 2,145,828 1.19 - - - - Lehigh Acres 11,888,187 6,051,218 5,836,969 1,415,000 3,439,336 1.20 - - - - Pasco Systems 16,366,387 7,524,066 8,842,321 - 7,178,225 1.23 - - - - Consolidated 823,093 538,282 284,811 - 227,976 1.25 - - - - Lindrick 4,232,463 1,632,076 2,600,387 - 1,865,225 1.39 - - - - North Fort Myers 8,333,037 3,718,003 4,615,034 - 3,726,984 1.24 - - - - Total $48,388,879 $22,576,087 $25,812,792 $2,312,072 $18,583,574 1.24 - - - - 2012 Golden Gate 6,621,557 2,884,461 3,737,096 936,561 2,124,023 1.22 - - - - Lehigh Acres 11,608,382 5,480,600 6,127,782 1,465,000 3,477,651 1.24 - - - - Pasco Systems 16,516,475 9,321,853 7,194,622 - 4,785,891 1.50 - - - - Consolidated 1,976,950 977,353 999,597 - 453,053 2.21 - - - - Lindrick 3,868,309 1,992,190 1,876,119 250,000 1,201,605 1.29 - - - - North Fort Myers 7,614,567 4,125,609 3,488,958 200,004 2,720,739 1.19 - - - - Total $48,206,240 $24,782,066 $23,424,174 $2,851,565 $14,762,962 1.33 - - - - 2013 Golden Gate 6,646,052 2,966,733 3,679,319 1,072,412 1,910,268 1.23 - - - - Lehigh Acres 12,782,792 6,039,445 6,743,347 590,000 3,612,996 1.60 - - - - Pasco Systems 17,738,116 10,044,662 7,693,454 1,375,000 4,881,691 1.23 - - - - Consolidated 4,545,813 2,524,771 2,021,042 220,000 1,120,726 1.51 - - - - Lindrick 4,484,435 2,100,149 2,384,286 380,000 1,216,054 1.49 - - - - North Fort Myers 8,908,982 4,876,976 4,032,006 750,000 2,759,660 1.15 - - - - Lake Aqua 1,642,755 979,501 663,254 - 383,646 1.73 - - - - Pasco Aqua 1,577,468 745,693 831,775 - 431,466 1.93 - - - - Unified Aqua 3,326,669 2,157,780 1,168,889 - 522,189 2.24 - - - - Total $61,653,082 $32,435,710 $29,217,372 $4,387,412 $16,838,696 1.38 - - - - Water, Wastewater and Other Revenue (1) Less: Operating Expenses (2) Net Available Revenue Debt ServiceDebt Service Special Assessment Special Assessment Bonds Florida Governmental Utility Authority Pledged-Revenue Coverage Last Ten Fiscal Years (amounts expressed in whole dollars) - 74 - Fiscal Year Name of System Principal Interest (3) Coverage Principal Interest Coverage 2014 Golden Gate 7,284,315 2,828,956 4,455,359 918,750 1,184,472 2.12 - - - - Lehigh Acres 13,070,967 6,299,583 6,771,384 1,645,000 2,954,708 1.47 - - - - Pasco Systems 17,662,991 9,648,352 8,014,639 2,310,000 4,890,205 1.11 - - - - Consolidated 5,465,375 2,562,348 2,903,027 220,000 915,208 2.56 - - - - Lindrick 4,397,096 2,159,740 2,237,356 455,000 1,217,251 1.34 - - - - North Fort Myers 9,500,526 5,122,877 4,377,649 1,009,991 2,773,115 1.16 - - - - Lake Aqua 3,427,822 2,036,859 1,390,963 350,000 754,714 1.26 - - - - Pasco Aqua 3,293,298 1,490,673 1,802,625 385,000 848,785 1.46 - - - - Unified Aqua 6,859,074 4,456,241 2,402,833 555,000 1,027,256 1.52 - - - - Total $70,961,464 $36,605,629 $34,355,835 $7,848,741 $16,565,713 1.41 - - - - 2015 Golden Gate 7,659,678 2,944,005 4,715,673 1,117,036 1,627,298 1.72 - - - - Lehigh Acres 13,847,202 6,202,193 7,645,009 1,100,000 2,675,193 2.03 - - - - Pasco Systems 18,582,004 9,259,062 9,322,942 2,845,000 4,843,739 1.21 - - - - Consolidated 5,700,323 2,635,265 3,065,058 495,000 1,110,358 1.91 - - - - Lindrick 4,482,545 2,191,805 2,290,740 475,000 1,197,469 1.37 - - - - North Fort Myers 11,326,192 5,370,059 5,956,133 1,230,000 2,745,340 1.50 - - - - Lake Aqua 3,512,793 2,040,588 1,472,205 360,000 747,032 1.33 - - - - Pasco Aqua 3,475,577 1,456,076 2,019,501 395,000 840,486 1.63 - - - - Unified Aqua 6,929,384 4,634,578 2,294,806 565,000 1,016,157 1.45 - - - - Total $75,515,698 $36,733,631 $38,782,067 $8,582,036 $16,803,072 1.53 - - - - 2016 Golden Gate 7,902,396 2,995,452 4,906,944 1,167,059 1,584,474 1.78 - - - - Lehigh Acres 14,342,314 6,672,418 7,669,896 1,880,000 2,718,738 1.67 - - - - Pasco Systems 19,254,181 9,786,527 9,467,654 2,910,000 4,763,331 1.23 - - - - Consolidated 5,870,824 2,510,270 3,360,554 615,000 1,105,108 1.95 - - - - Lindrick 4,528,904 2,219,169 2,309,735 500,000 1,173,112 1.38 - - - - North Fort Myers 11,743,355 5,424,734 6,318,621 1,290,000 2,702,054 1.58 - - - - Lake Aqua 3,748,148 2,169,394 1,578,754 365,000 739,132 1.43 - - - - Pasco Aqua 3,854,826 1,675,857 2,178,969 405,000 831,968 1.76 - - - - Unified Aqua 7,506,629 4,616,515 2,890,114 575,000 1,004,857 1.83 - - - - Total $78,751,577 $38,070,336 $40,681,241 $9,707,059 $16,622,774 1.55 - - - - CHECK $38,070,336 Notes: (2) Excludes depreciation and amortization expenses. (3) Netted against Build America Bond subsidies received. Debt Service Special Assessment Debt Service (5) The FGUA purchased the Consolidated Systems, the Lindrick Utility Systems and the North Fort Myers Utility Systems during FY 2010 and Issued debt for $5,124,000, $24,665,000, and $62,440,000 respectively for these aquisitions. (1) Includes operating revenues, investment income, and miscellaneous income. Also includes funds from Rate Stabilization accounts in accordance with Bond documents. Excludes water and wastewater impact fee revenue and special assessments. (4) The Pasco Systems includes the Aloha Gardens and Seven Springs service areas. This system was purchased on February 27, 2009 and issued $106,710,000 in debt for the acquistion. Water, Wastewater and Other Revenue (1) Less: Operating Expenses (2) Net Available Revenue Pledged-Revenue Coverage (continued) Last Ten Fiscal Years (amounts expressed in whole dollars) Special Assessment Bonds Debt Secured by Water/Wastewater Revenue Florida Governmental Utility Authority - 75 - Estimated population served Per Capita Personal Income Median Age School Enrollment Unemployment Rate 2007 Golden Gate 22,970 54,337 62.4 42,775 2.7 Lehigh Acres 585,608 35,411 43.7 78,775 2.7 Total 608,578 2008 Golden Gate 23,101 71,033 62.4 42,062 5.1 Lehigh Acres 615,741 39,410 43.2 80,526 5.2 Total 638,842 2009 Golden Gate 22,556 79,315 63.0 41,666 8.2 Lehigh Acres 623,725 41,864 42.7 79,457 9.2 Pasco Systems 439,702 27,628 41.6 62,530 12.5 Total 1,085,983 2010 Golden Gate 21,651 76,708 62.5 42,786 10.0 Lehigh Acres 615,124 41,954 42.7 80,161 13.9 Pasco Systems 437,500 29,113 45.6 66,994 13.2 Consolidated Systems See Pasco System 29,113 45.6 66,994 13.2 Lindrick Systems See Pasco System 29,113 45.6 66,994 13.2 NFMU Systems See Lehigh System 41,954 43 80,161 13.9 Total 1,074,275 2011 Golden Gate 22,390 75,910 63.8 42,098 12.4 Lehigh Acres 622,900 38,653 42.8 81,929 13.5 Pasco Systems 464,697 29,113 45.6 66,994 13.2 Consolidated Systems See Pasco System 29,113 45.6 66,994 13.2 Lindrick Systems See Pasco System 29,113 45.6 66,994 13.2 NFMU Systems See Lehigh System 38,653 34.4 81,929 13.5 Total 1,109,987 2012 Golden Gate 19,537 74,862 63.9 42,430 10.3 Lehigh Acres 625,310 30,363 45.6 83,771 11.2 Pasco Systems 464,697 29,236 43.6 67,337 11.7 Consolidated Systems See Pasco System 29,236 43.6 67,337 11.7 Lindrick Systems See Pasco System 29,236 43.6 67,337 11.7 NFMU Systems See Lehigh System 30,363 45.6 83,771 11.2 Total 1,109,544 2013 Golden Gate 19,939 82,316 64.2 44,346 10.0 Lehigh Acres 631,330 43,022 45.7 85,581 8.7 Pasco Systems 468,562 30,424 43.6 66,497 9.7 Consolidated Systems See Pasco System 30,424 43.6 66,497 9.7 Lindrick Systems See Pasco System 30,424 43.6 66,497 9.7 NFMU Systems See Lehigh System 43,022 45.7 85,581 8.7 Lake Aqua 301,019 33,846 46.2 40,753 8.9 Pasco Aqua See Pasco System 30,424 43.6 66,497 9.7 Unified Aqua 360,308 33,520 42.2 57,023 8.0 Total 1,781,158 Florida Governmental Utility Authority Demographic and Economic Statistics Last Ten Fiscal Years - 76 - Estimated population served Per Capita Personal Income Median Age School Enrollment Unemployment Rate Florida Governmental Utility Authority Demographic and Economic Statistics Last Ten Fiscal Years 2014 Golden Gate 20,115 83,798 64.3 44,881 7.2 Lehigh Acres 638,029 40,248 45.6 87,215 7.2 Pasco Systems 473,566 33,228 43.6 67,374 7.8 Consolidated Systems See Pasco System 33,228 43.6 67,374 7.8 Lindrick Systems See Pasco System 33,228 43.6 67,374 7.8 NFMU Systems See Lehigh System 40,248 45.6 87,215 7.2 Lake Aqua 303,186 34,442 46.2 40,753 6.9 Pasco Aqua See Pasco System 33,228 43.6 67,374 7.8 Unified Aqua 522,512 33,579 38.6 79,938 6.9 Total 1,957,408 2015 Golden Gate 20,537 80,156 64.0 44,415 5.9 Lehigh Acres 643,367 43,169 45.7 90,887 6.1 Pasco Systems 479,340 32,711 43.8 66,904 6.7 Consolidated Systems See Pasco System 32,711 43.8 66,904 6.7 Lindrick Systems See Pasco System 32,711 43.8 66,904 6.7 NFMU Systems See Lehigh System 43,169 45.7 90,887 6.1 Lake Aqua 315,690 35,786 na na 6.3 Pasco Aqua See Pasco System 32,711 43.8 66,904 6.7 Unified Aqua 465,905 37,636 36.7 69,392 6.6 Total 1,924,839 2016 (1) Golden Gate 20,968 84,721 64.0 45,995 4.9 (2) Lehigh Acres 665,845 48,453 46.2 92,780 5.1 (3) Pasco Systems 487,588 33,795 44.1 70,169 6.0 (3) Consolidated Systems See Pasco System 33,795 44.1 70,169 6.0 (3) Lindrick Systems See Pasco System 33,795 44.1 70,169 6.0 (2) NFMU Systems See Lehigh System 48,453 46.2 92,780 5.1 (4) Lake Aqua 325,875 37,698 46.8 (7) 42,000 5.2 (3) Pasco Aqua See Pasco System 33,795 44.1 70,169 6.0 (5) Unified Aqua 472,387 36,512 38.1 (6) 68,879 5.5 Total 1,972,663 Data Sources: (1) City of Naples FY2015 CAFR. Information for Golden Gate System is not specific to the service area. Information reflects the City of Naples data. (2) Lee County FY2015 CAFR. Information for Lehigh Acres and NFMU System data is not specific to the service area. Information reflects the Lee County data. (3) Pasco County FY2015 CAFR. Information for Pasco, Consolidated, Lindrick and Aqua Pasco data is not specific to the service area. Information reflects the Pasco County data. (4) Lake County FY2015 CAFR, U.S. Census and Office of Economic and Development Research. Information for Aqua Lake data is not specific to the service area. Information reflects the Lake County data. (5) Seminole, Marion, and Polk County FY2015 CAFRs. Information for Aqua Unified data is not specific to the service area. Information reflects the average Seminole County, Marion County, and Polk County data. (6) Seminole County FY2015 CAFR. Median Aga information available for Seminole County only. (7) School Enrollment data provided from Lake County School Board - 77 - Employer Employees Rank Percentage of total County Employment Employees Rank Percentage of total County Employment Employees Rank Percentage of total County Employment Employees Rank Percentage of total County Employment Golden Gate (1) Collier County School District 7,041 1 25.4% 5,365 1 21.1% 5,288 1 20.8% 5,374 1 22.2% NCH Healthcare System 7,000 2 25.2% 4,000 2 15.7% 4,000 2 15.7% 3,007 2 12.4% Publix Supermarket 6,968 3 25.1% 2,214 7 8.7% 800 7 3.1% 2,214 3 9.1% Collier County Government 1,600 4 5.8% 1,946 3 7.6% 2,157 3 8.5% 2,121 4 8.8% Marriott Corporation, Inc. (Ritz Carlton) 1,100 5 4.0% 800 6 3.1% 1,100 6 4.3% 743 6 3.1% The Country Club of Naples 1,050 6 3.8% Collier County Sheriff's Office 1,029 7 3.7% 1,367 4 5.4% 1,867 4 7.3% 1,387 5 5.7% The Moorings 754 8 2.7% 730 10 2.9% 730 10 2.9% 730 8 3.0% Naples Grande Beach Resort 700 9 2.5% Fifth-Third Bank 500 10 1.8% 733 9 2.9% 733 9 2.9% 733 7 3.0% Waldorf Astoria (Naples Grande Beach) 760 8 3.0% 760 8 3.0% 605 9 2.5% Allen Systems Group 1,200 5 4.7% 1,300 5 5.1% Barron Collier Partnership 600 10 2.5% Estimated Other Employers N/A 6,325 24.9% 6,684 26.3% 6,684 27.6% Total 27,742 100.0%25,440 100.0%25,419 100.0%24,198 100.0% Lehigh Acres and North Fort Myers (2) Lee Memorial Health System 10,900 1 3.5% 10,500 1 3.7% 10,425 1 3.8% 10,249 1 3.7% Lee County School District 10,600 2 3.4% 10,000 2 3.5% 10,333 2 3.8% 9,394 2 3.4% Publix Super Markets 5,007 3 1.6% 5,297 3 1.9% 4,404 3 1.6% 4,362 3 1.6% Lee County Government 2,584 4 0.8% 2,528 4 0.9% 2,358 4 0.9% 2,538 4 0.9% Wal-Mart 2,507 5 0.8% 2,075 5 0.7% 1,967 5 0.7% 1,967 5 0.7% Home Depot 1,783 6 0.6% City of Cape Coral 1,654 7 0.5% 1,654 7 0.6% 1,197 9 0.4% 1,197 9 0.4% Chico's FAS, Inc 1,642 8 0.5% 1,703 6 0.6% 1,703 6 0.6% 1,253 8 0.5% Lee County Sheriff's Office 1,585 9 0.5% 1,508 8 0.5% 1,535 7 0.6% 1,585 6 0.6% U.S. Postal Service 1,477 10 0.5% 1,477 8 0.5% 1,291 7 0.5% Florida Gulf Coast University 1,490 9 0.5% ShellPoint Retirement Community 1,000 10 0.4% Target 1,100 10 0.4% 1,100 10 0.4% Estimated Other Employers 269,514 87.2% 244,842 86.6% 237,930 86.7% 240,151 87.3% Total 309,253 100.0%282,597 100.0%274,429 100.0%275,087 100.0% Pasco, Consolidated, Lindrick and Pasco Aqua Utility Systems (3) Pasco County School District 9,713 1 4.9% 9,278 1 5.2% 9,289 1 4.8% 9,289 1 4.7% Pasco County Government 2,730 2 1.4%2,627 3 1.5% 2,026 5 1.0% 2,000 3 1.0% HCA Health Services of Florida (Regional Medical Center Bayonet Point, Medical Center of Trinity fka Community Hospital) 2,597 3 1.3% 2,646 2 1.5% 2,502 3 1.3% 2,086 6, 8 1.1% State of Florida Government 1,211 4 0.6%1,218 5 0.7% 1,262 7 0.6% 1,296 5 0.7% Pasco County Sheriff 1,189 5 0.6%1,336 4 0.7% 1,319 6 0.7% 1,300 4 0.7% Morton Plant North Bay Hospital 873 6 0.4%873 8 0.5% 831 10 0.4% 777 10 0.4% Florida Hospital Zephyrhills 847 7 0.4%950 7 0.5% 1,000 9 0.5% 1,050 7 0.5% Florida Hospital Wesley Chapel 750 8 0.4% Saint Leo University 726 9 0.4% Federal Government 724 10 0.4%729 10 0.4% WalMart Supercenters 766 9 0.4% 2,531 2 1.3% 2,050 2 1.0% Physicians Injury Medical Center 2,200 4 1.1% Florida Medical Clinic 1,193 6 0.7% 1,066 8 0.5% 909 9 0.5% Estimated Other Employers 178,080 89.3% 158,517 88.0% 171,307 87.7% 176,929 89.5% Total 199,440 100.0%180,133 100.0%195,333 100.0%197,686 100.0% Lake Aqua Utility System (4) Lake County Public Schools 5,435 1 4.1% 5,435 1 4.3% 6,796 1 5.5% 4,353 1 3.6% Leesburg Regional Medical 1,826 2 1.4% 1,826 2 1.4% 2,299 2 1.9% 2,093 2 1.8% Lake County Government 1,782 3 1.3% 1,501 3 1.2% 1,411 5 1.1% 1,817 4 1.5% Florida Hospital Waterman 1,482 4 1.1% 1,482 4 1.2% 1,500 3 1.2% 1,400 5 1.2% Southlake Hospital 1,143 5 0.9% 1,143 5 0.9% 1,500 4 1.2% Villages of Lake-Sumter, Inc. 1,120 6 0.8% 1,120 6 0.9% 1,120 6 0.9% 2,022 3 1.7% Lake Port Square 500 7 0.4% 500 7 0.4% 400 9 0.3% Lifestream Behavioral Company 500 7 0.4% 500 7 0.4% Dura-Stress, Inc. 425 8 0.3% 425 8 0.3% Hewitt Contracting Company 370 9 0.3% 370 9 0.3% Southeast Modular Manufacturing 325 10 0.2% 325 10 0.3% Lake Medical Imaging 500 7 0.4% Ranye Components 400 10 0.3% Embarq 811 6 0.7% Casmin Incorporated 800 7 0.7% G&T Conveyor Company, Inc.550 8 0.5% Bailey Industries 509 9 0.4% Accent 500 10 0.4% Estimated Other Employers 119,063 88.9% 113,042 88.5% 107,413 87.1% 104,733 87.6% Total 133,971 100.0%127,669 100.0%123,339 100.0%119,588 100.0% Unified Aqua Utility System (5) Polk County School Board 13,135 1 2.0% 13,121 1 2.1% 13,800 1 2.2% 13,800 1 2.2% Publix Supermarkets (Polk & Marion) 11,737 2 1.8% 12,030 2 1.9% 10,470 2 1.7% 9,800 2 1.5% Walmart (Polk & Marion) 8,608 3 1.3% 7,470 4 1.2% 5,100 5 0.8% 5,100 5 0.8% Seminole County Public Schools 7,687 4 1.2% 7,751 3 1.2% 7,952 3 1.3% 7,220 3 1.1% Marion County Public Schools 6,070 5 0.9% 6,071 6 1.0% 6,071 4 1.0% 6,071 4 0.9% Lakeland Regional Medical Center 4,499 6 0.7% 4,500 8 0.7% 4,500 7 0.7% 4,500 7 0.7% Polk County Government 4,472 7 0.7% 4,500 7 0.7% 4,500 6 0.7% 4,500 6 0.7% Orlando Sanford International Airport 3,500 8 0.5% 3,500 10 0.6% AT&T (Seminole + Marion) 3,063 9 0.5% 4,063 9 0.6% Munroe Regional Medical Center 2,648 10 0.4% 2,648 10 0.4% 2,648 9 0.4% State of Florida (Polk + Marion) 6,900 5 1.1% 4,300 8 0.7% 4,300 8 0.7% Mosiac 3,000 9 0.5% State of Florida (Marion County)2,600 10 0.4% Estimated Other Employers 584,445 89.9% 556,200 88.8% 563,765 90.0% 578,855 90.5% Total 649,864 100.0%626,106 100.0%626,106 100.0%639,394 100.0% (1) City of Naples FY2015 CAFR Note: Employer Statistical Information is not available for the specific service area. Information presented is for the whole City of Naples. (2) Lee County FY2015 CAFR Note: Employer Statistical Information is not available for the specific service area. Information provided is for all of Lee County. (3) Pasco County FY2015 CAFR Note: Information for Pasco Systems is presented for all of Pasco County. This information is relevant for the Pasco, Consolidated, Lindrick and Aqua Pasco Utlity Systems. (4) Lake County FY2015 CAFR Note: Employer Statistical Information is not available for the specific service area. Information provided is for all of Lake County. (5) Seminole County FY2015 CAFR, Polk County FY2015 CAFR, and Marion County FY2015 CAFR Note: Employer Statistical Information is not available for the specific service area. Information provided is for all of Seminole County and Polk County. N/A = Not provided or available Florida Governmental Utility Authority Principal Employers Last Four Fiscal Years 2013201420152016 - 78 - Function 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Water Citrus (1)New Connections 105 - - - - - - - - - Average Daily Flow (mgpd)*5.775 - - - - - - - - - Poinciana (2)New Connections 284 - - - - - - - - - Average Daily Flow (mgpd)*7.850 - - - - - - - - - Golden Gate New Connections 55 (1) (299) 13 13 (78) 68 (46) 6 38 Average Daily Flow (mgpd)*1.446 1.411 1.341 1.38 1.427 1.626 1.284 1.374 1.54 1.516 Lehigh Acres New Connections 267 125 56 60 46 (488) 3 67 41 154 Average Daily Flow (mgpd)*2.437 2.162 2.07 2.105 2.199 2.203 2.01 2.051 2.249 2.27 Pasco (3)New Connections - - 15,196 (192) 236 446 213 102 (43) 2,111 Average Daily Flow (mgpd)*- - 4.006 3.28 3.009 3.283 3.119 2.996 2.879 3.018 Consolidated (4)New Connections - - - 2,358 20 3,596 122 267 53 58 Average Daily Flow (mgpd)*- - - 0.382 0.360 1.285 1.202 1.081 1.181 1.283 Lindrick New Connections - - - 2,766 59 (7) 10 250 (4) 15 Average Daily Flow (mgpd)*- - - 0.704 0.658 0.630 0.653 0.597 0.569 0.566 MacDill AFB New Connections - - - 1 - - - - - - Average Daily Flow (mgpd)*- - - - 1.200 0.977 0.988 0.903 0.856 0.762 North Fort Myers (6)New Connections - - - 1,839 10 - - (8) 2 12 Average Daily Flow (mgpd)*- - - 0.131 0.077 0.0825 0.086 0.094 0.091 0.083 Lake Aqua New Connections - - - - - - 4,778 20 (168) 410 Average Daily Flow (mgpd)*- - - - - - 0.832 0.793 0.778 0.853 Pasco Aqua New Connections - - - - - - 2,886 (63) 28 421 Average Daily Flow (mgpd)*- - - - - - 0.237 0.337 0.373 0.377 Unified Aqua New Connections - - - - - - 7,106 183 49 361 Average Daily Flow (mgpd)*- - - - - - 1.483 1.470 1.492 1.432 Total New Connections 711 124 14,953 6,845 384 3,469 15,186 772 (36) 3,580 Average Daily Flow (mgpd)*17.508 3.573 7.417 7.982 8.930 10.087 11.894 11.696 12.008 12.160 Wastewater Citrus (1)New Connections 65 - - - - - - - - - Average Daily Flow (mgpd)*0.556 - - - - - - - - - Poinciana (2)New Connections 661 - - - - - - - - - Average Daily Flow (mgpd)*5.240 - - - - - - - - - Golden Gate New Connections 12 (7) (319) 1 - (20) 30 (31) (11) 23 Average Daily Flow (mgpd)*1.209 1.204 1.105 1.025 0.863 1.113 1.171 1.08 1.113 1.104 Lehigh Acres New Connections 138 77 27 89 45 (135) (18) 36 74 143 Average Daily Flow (mgpd)*1.602 1.764 1.674 2.044 1.429 1.446 2.002 1.707 1.92 2.156 Pasco (3)New Connections - - 14,555 (153) 178 420 237 1,917 190 (2,016) Average Daily Flow (mgpd)*- - 1.345 1.670 1.750 1.891 1.747 1.596 1.674 1.574 Consolidated (7)New Connections - - - - - 3,037 70 214 (13) 29 Average Daily Flow (mgpd)*- - - - - 0.018 0.014 0.017 0.021 0.02 Lindrick New Connections - - - 2,508 42 (9) 27 9 (5) 14 Average Daily Flow (mgpd)*++- - - - - - - - - - MacDill AFB New Connections - - - 1 - - - - - - Average Daily Flow (mgpd)*- - - - 0.600 0.413 0.421 0.465 0.577 0.549 North Fort Myers (5)New Connections - - - 11,650 86 46 46 29 97 9 Average Daily Flow (mgpd)*- - - 2.097 1.963 1.867 2.983 2.711 3.148 3.815 Lake Aqua New Connections - - - - - - 1,164 (2) (2) 83 Average Daily Flow (mgpd)*- - - - - - 0.125 0.147 0.154 0.152 Pasco Aqua New Connections - - - - - - 2,742 (77) 31 410 Average Daily Flow (mgpd)*- - - - - - 0.261 0.282 0.347 0.308 Unified Aqua New Connections - - - - - - 1,824 114 (31) 85 Average Daily Flow (mgpd)*- - - - - - 0.446 0.495 0.463 0.421 Total New Connections 876 70 14,263 14,096 351 3,339 6,122 2,209 330 (1,220) Average Daily Flow (mgpd)*8.607 2.968 4.124 6.836 6.605 6.748 9.170 8.501 9.417 10.099 Notes:* mgpd = Million gallons per day + Wastewater treatment provided by Hillsborough County, Florida ++Wastewater treatment provided by City of New Port Richey (0.700 MGD) +++Wastewater treatment provided by Pasco county, Florida (1) The Citrus System was transitioned to Citrus County on February 15, 2007. (2) The Poinciana System was transitioned to the Tohopekaliga Water Authority on April 30, 2007. (3) The Aloha Gardens and Seven Springs service areas are combined for Financial reporting purposes and called the Pasco Utility Systems. (4) The Consolidated System is comprised of thirteen small service areas. (5) The North Fort Myers wastewater treatment is comprised of 2 treatment plants. (6) Flows reported for Lk Fairways only (7) Flows reported for Linda Lakes WWTP only Fiscal Year Florida Governmental Utility Authority Operating Indicators by Function Last Ten Fiscal Years - 79 - Function 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016WaterCitrus** Number of customer accounts 13,080 - - - - - - - - - Water mains (miles) 448 - - - - - - - - - Water treatment plant capacity (mgpd)* 18.098 - - - - - - - - - Poinciana*** Number of customer accounts 23,828 - - - - - - - - - Water mains (miles) 240 - - - - - - - - - Water treatment plant capacity (mgpd)* 13.378 - - - - - - - - - Golden Gate Number of customer accounts 3,970 3,969 3,670 3,683 3,696 3,618 3,686 3,640 3,646 3,684 Water mains (miles) 42 42 44 44 44 44 44 44 44 44 Water treatment plant capacity (mgpd)* 2.099 2.099 2.099 2.099 2.099 2.099 2.099 2.099 2.099 2.099 Lehigh Acres Number of customer accounts 12,579 12,704 12,760 12,820 12,866 12,378 12,381 12,448 12,489 12,643 Water mains (miles) 195 195 196 196 196 196 196 196 196 196 Water treatment plant capacity (mgpd)* 3.100 4.100 4.100 4.100 4.100 4.100 3.100 3.100 3.100 3.100 Pasco Systems Number of customer accounts - - 15,196 15,004 15,240 15,686 15,899 16,001 15,958 18,069 Water mains (miles) - - 144 144 144 144 144 144 144 144 Water treatment plant capacity (mgpd)*++++ - - 3.125 3.125 2.900 2.900 2.900 2.900 2.900 2.900 Consolidated Number of customer accounts - - - 2,358 2,378 5,974 6,096 6,363 6,416 6,474 Water mains (miles) - - - 24 24 36 36 36 36 36 Water treatment plant capacity (mgpd)* - - - 0.550 0.550 1.627 1.627 1.430 1.388 1.388 Lindrick Number of customer accounts - - - 2,766 2,825 2,818 2,828 3,078 3,074 3,089 Water mains (miles) - - - - - - - - - - Water treatment plant capacity (mgpd)*+++++ - - - 0.870 0.870 0.870 0.870 0.870 0.870 0.870 MacDill AFB Number of customer accounts - - - 1 1 1 1 1 1 1 Water mains (miles) - - - - 94 94 94 94 94 94 Water treatment plant capacity (mgpd)+ - - - - 5.000 5.000 5.000 5.000 5.000 5.000 North Fort Myers Number of customer accounts - - - 1,839 1,849 1,849 1,849 1,841 1,843 1,855 Water mains (miles) - - - 24 24 24 24 24 24 24 Water treatment plant capacity (mgpd)* - - - 0.101 0.101 0.101 0.101 0.101 0.101 0.101 Lake Aqua Number of customer accounts - - - - - - 4,778 4,798 4,630 5,040 Water mains (miles) - - - - - - - - - - Water treatment plant capacity (mgpd)* - - - - - - 1.693 1.693 1.697 1.818 Pasco Aqua Number of customer accounts - - - - - - 2,886 2,823 2,851 3,272 Water mains (miles) - - - - - - - - - - Water treatment plant capacity (mgpd)* - - - - - - 0.328 0.347 0.347 0.347 Unified Aqua Number of customer accounts - - - - - - 7,106 7,289 7,338 7,699 Water mains (miles) - - - - - - - - - - Water treatment plant capacity (mgpd)* - - - - - - 3.929 3.929 3.927 3.651 TotalNumber of customer accounts 53,457 16,673 31,626 38,471 38,855 42,324 57,510 58,282 58,246 61,826Water mains (miles) 925.0 237.0 384.3 432.0 526.4 538.4 538.4 538.0 538.0 538.0Water treatment plant capacity (mgpd)* 36.675 6.199 9.324 10.845 15.620 16.697 21.647 21.469 21.429 21.274Florida Governmental Utility AuthorityCapital Asset Statistics by FunctionLast Ten Fiscal Years- 80 - Function 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016WastewaterCitrus** Number of customer accounts 5,678 - - - - - - - - - Force mains (miles) 17 - - - - - - - - - Gravity sewer mains (miles) 111 - - - - - - - - - Wastewater treatment plant capacity (mgpd)* 0.975 - - - - - - - - - Poinciana*** Number of customer accounts 23,737 - - - - - - - - - Force mains (miles) 38 - - - - - - - - - Gravity sewer mains (miles) 169 - - - - - - - - - Wastewater treatment plant capacity (mgpd)* 5.550 - - - - - - - - - Golden Gate Number of customer accounts 2,631 2,624 2,305 2,306 2,306 2,286 2,316 2,285 2,274 2,297 Force mains (miles) 14 14 14 14 14 14 14 14 14 14 Gravity sewer mains (miles) 23 23 23 23 23 23 23 23 23 23 Wastewater treatment plant capacity (mgpd)* 0.950 0.950 0.950 1.250 1.250 1.500 1.500 1.500 1.500 1.500 Lehigh Acres Number of customer accounts 10,083 10,160 10,187 10,276 10,321 10,186 10,168 10,204 10,278 10,421 Force mains (miles) 49 49 49 49 49 49 49 49 49 49 Gravity sewer mains (miles) 103 103 103 103 103 103 103 103 103 103 Wastewater treatment plant capacity (mgpd)* 2.500 2.500 2.300 2.300 2.300 3.500 3.500 3.000 3.000 3.000 Pasco Systems Number of customer accounts - - 14,555 14,402 14,580 15,000 15,237 17,154 17,344 15,328 Force mains (miles) - - - - - - - - - - Gravity sewer mains (miles) - - - - - - - - - - Wastewater treatment plant capacity (mgpd)* - - 2.100 2.100 2.100 2.100 2.500 2.500 2.500 2.500 Consolidated Number of customer accounts - - - - - 3,037 3,107 3,321 3,308 3,337 Force mains (miles) - - - - - - - - - - Gravity sewer mains (miles) - - - - - 20 20 20 20 20 Wastewater treatment plant capacity (mgpd)* - - - - - 0.020 0.020 0.020 0.020 0.020 Lindrick Number of customer accounts - - - 2,508 2,550 2,541 2,568 2,577 2,572 2,586 Force mains (miles) - - - - - - - - - - Gravity sewer mains (miles) - - - 26 26 26 26 26 26 26 Wastewater treatment plant capacity (mgpd)*++ - - - 0.85 0.85 0.850 0.700 0.700 0.700 0.700 MacDill AFB Number of customer accounts - - - 1 1 1 1 1 1 1 Force mains (miles) - - - - 10.830 10.830 10.830 10.830 10.830 10.830 Gravity sewer mains (miles) - - - - 23.040 23.040 23.040 23.040 23.040 23.040 Wastewater treatment plant capacity (mgpd)* - - - - 1.200 1.200 1.200 1.200 1.200 1.200 North Fort Myers Number of customer accounts - - - 11,650 11,736 11,782 11,828 11,857 11,954 11,963 Force mains (miles) - - - - - - - - - - Gravity sewer mains (miles) - - - - - - - - - - Wastewater treatment plant capacity (mgpd)*+++ - - - 3.800 3.800 4.550 4.550 4.550 4.550 4.550 Lake Aqua Number of customer accounts - - - - - - 1,164 1,162 1,160 1,243 Force mains (miles) - - - - - - - - - - Gravity sewer mains (miles) - - - - - - - - - - Wastewater treatment plant capacity (mgpd)* - - - - - - 0.345 0.345 0.345 0.345 Florida Governmental Utility AuthorityCapital Asset Statistics by Function (continued)Last Ten Fiscal Years- 81 - Function 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Pasco Aqua Number of customer accounts - - - - - - 2,742 2,665 2,696 3,106 Force mains (miles) - - - - - - - - - - Gravity sewer mains (miles) - - - - - - - - - - Wastewater treatment plant capacity (mgpd)* - - - - - - 0.438 0.438 0.438 0.438 Unified Aqua Number of customer accounts - - - - - - 1,824 1,938 1,907 1,992 Force mains (miles) - - - - - - - - - - Gravity sewer mains (miles) - - - - - - - - - - Wastewater treatment plant capacity (mgpd)* - - - - - - 0.741 0.741 0.724 0.766 TotalNumber of customer accounts 42,129 12,784 27,047 41,143 41,494 44,833 50,955 53,164 53,494 52,274Force mains (miles) 118.0 63.0 63.0 63.0 73.8 73.8 73.8 73.8 73.8 73.8 Gravity sewer mains (miles) 406.0 126.0 126.0 152.0 175.0 195.0 195.0 195.0 195.0 195.0 Wastewater treatment plant capacity (mgpd)* 9.975 3.450 5.350 10.300 11.500 13.720 15.494 14.994 14.977 15.019 Notes: * mgpd = Million gallons per day** The Citrus System was transitioned to Citrus County on February 15, 2007.***The Poinciana System was transitioned to the Tohopekaliga Water Authority on April 30, 2007.+ Water treatment provided by Hillsborough County, Florida++ Wastewater treatment provided by City of New Port Richey (0.700 MGD)+++ (2) WWTP's Lk Fairways (0.30 MGD) & Del Prado (4.25 MGD)++++ Seven Springs Mithcell WTP design capacity (2.90 MGD) does not include Aloha GardensLast Ten Fiscal YearsFlorida Governmental Utility AuthorityCapital Asset Statistics by Function (continued)- 82 - Other ReportsTAB 4 - 83 - INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors, Florida Governmental Utility Authority: We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the business-type activities and each major fund of Florida Governmental Utility Authority (the Authority) as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements, and have issued our report thereon dated March 10, 2017. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Authority’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Authority’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. - 84 - Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Daytona Beach, Florida March 10 , 2017 Pennington Moore Wilkinson Bell DmbarP.A. ATTORNEYS AT LAW WVew.pellnIllgiolilaly C0111 September 27, 2010 Robert Vocisano Sharon Romer Quality Inn Golf Resort 4100 Golden Gate Pkwy Naples, FL 34116 Mr. Vocisano and Ms. Romer: Frederick L. Busack Attorney at Law (813)639-9599 frcd@penningtonlaw.com penningtonlaw.com Tarek and I appreciated you taking the time to meet with us. We also appreciate the cooperative relationship that has developed between the FGUA, its local service provider and the golf course resort owners and operators. As you suggested in the meeting, we have been investigating the title encumbrances and fee conveyances on the golf course property and found a number of problems. The great news is that it doesn't appear that anything is too difficult to remedy. Attached as Exhibit A, you will find a complete summary of our title search. We have also prepared a couple of maps to assist you with identifying the issues. The first map, attached as Exhibit B, illustrates the locations of the fee parcels and utility easements on the golf course, and the second map, attached as Exhibit C, illustrates the location of an access easement that was apparently originally intended to provide access to the water plant parcel, the adjacent maintenance area and the parcel with the large antenna located on it. Attached as Exhibit D are copies of all the documents identified in the title summary. By referencing the first map (Exhibit B), the most significant problem that we see is that, due to numerous conveyances of the water plant parcel, and apparent mistakes in the legal description, the FGUA finds itself in the strange position of owning two water plant parcels. The primary reason for this strange situation is the apparent error in the legal description used in the quitclaim deed recorded at Official Records Book 1131, Page 1230 of the Public Records of Collier County, Florida. By referencing the second map (Exhibit C), it seems pretty obvious that the access easement to the water plant is in the wrong location and should be properly located and corrected to reflect the access that all parties actually use. The terms of this easement are somewhat unusual in that it appears to give the FGUA the right to license others to use this access easement -- which is apparently exactly what the FGUA's predecessors did. It is this license that allows the owners of the parcel that contains 2701 North Rocky Point Drive, Suite 900 Tampa, FL 33607 (813) 639-9599 (813) 639-1488 Fax TALLAHASSEE TAMPA CLEARWATER Letter to Vocisano and Romer September 27, 2010 Page 2 the antenna (identified on the first map as the "Cable Parcel") to access their fee parcel. A license, by definition, can be revoked at will by the grantor of the license. Consequently, this is a somewhat precarious title state for the antenna parcel fee owners as this is their only access to their fee parcel. Additionally, the terms of the license are rather onerous on the antenna fee parcel owners as they have the sole responsibility to indemnify the FGUA for any damage that may occur to the access. For example, the hurricane damage that you pointed out in our meeting and in your prior correspondence would be the complete responsibility of the antenna parcel fee owners under the terms of the license. As you pointed out, this is probably not equitable, nor what the parties likely intended - but the license terms remain. One item that is not shown on the map is a utility easement that we discussed in our meeting. It is recorded at Official Records Book 4508, Page 1308. As we indicated in our meeting, this easement was recorded in the public records without the FGUA's knowledge or approval. It was apparently conveyed to the FGUA to contain a small portion of recently installed pipeline that extends outside the 30' -wide utility easement between the water plant parcel and the lots on the west side of the golf course. The portion of pipeline that lies outside the granted utility easement need not have been contained within this additional encumbrance. Instead, since the portion of the pipeline lying outside the utility easement lies under the driveway within the existing access easement, it would have been a simple matter to make the access easement into an access and utility easement when the revised legal description is completed. This would have completely eliminated the need for this additional encumbrance. While there are other smaller title defects outlined in the title summary below, these seem to be the major problems. However, it may be possible to further clear the title on the golf course, because it appears that the FGUA may no longer need the easement lying across the golf course property and extending up the east side of the property, so long as the FGUA can get another easement closer to the water plant parcel. It may be possible to have this easement located partially within the second water plant parcel illustrated on the map, with a small fee parcel reserved for the well itself, and extend northward along the cart path to the original water plant parcel. Naturally, we would wish to work with you on this to be sure that it does not interfere with your golf operations. To assist us all with developing a summary solution to this rather lengthy set of title issues, we have taken a stab at outlining a proposed global resolution: Proposed Resolution 1. The golf course fee owners, the antenna parcel fee owners and the FGUA will evenly split the cost to have the antenna parcel and the three associated appurtenant easements and the water plant parcel and two associated appurtenant utility easements Letter to Vocisano and Romer September 27, 2010 Page 3 surveyed to create correct legal descriptions that all three parties can agree upon. The surveys will be certified to all three parties. The surveyor will also make sure the associated appurtenant easements properly connect to the revised fee parcel descriptions. 2. The golf course owners, the antenna parcel owners and the FGUA will evenly split the cost to have a replacement access and utility easement surveyed. The easement should be located about 10' west of the existing concrete drive and abut the antenna fee parcel and the water plant parcel on the east side of the corrected easement, then extend along and adjacent to the water plant parcel south boundary. 3. The FGUA attorney will prepare corrective deeds to adopt the new legal descriptions for the fee parcels and draft two new non-exclusive access and utility easements to replace the current access easement and access license and incorporate the new legal descriptions. The access and utility easement for the antenna parcel will terminate at the antenna parcel's southern boundary while the FGUA's access and utility easement will include this same area as well as the area extending along the west boundary of the water plant parcel and along the south boundary of the water plant parcel. The FGUA attorney will also prepare a bill of sale to the golf course fee owners for any pipelines or appurtenances that may lie within the exclusive easement to the east of the water plant parcel that will also be vacated. 4. The FGUA will vacate the current access easement and the exclusive easement east of the water plant parcel and record these vacation instruments in the pubic record along with the bill of sale conveying any pipeline or appurtenances in the vacated exclusive easement to the golf course fee owners. 5. The FGUA will revoke the access license to the antenna parcel fee owners and record the revocation in the public record. 6. The parties will record the corrective deeds for the antenna parcel and three associated appurtenant easements and the water plant parcel and two associated appurtenant utility easements. 7. The parties will record the new replacement access and utility easements. 8. The FGUA will quitclaim its interest in the second water plant parcel created by the quitclaim deed recorded at OR 1131, PG 1230 to the golf course fee owners. 9. The parties will equally split the attorney cost that the FGUA incurs to repair the title for everyone. 10. The parties will develop an agreement to deal with maintenance and damage Letter to Vocisano and Romer September 27, 2010 Page 4 to the access road moving forward and resolve any other issues between them, including, but not limited to tree trimming, planting restrictions and set backs and any other issues that any of the three parties feel should be included in an agreement between the parties. Please let us know when you will be available to meet to continue the resolution of these issues. It would probably be advisable for all three parties to meet next time so we can all see and understand the issues and the proposed resolutions. To that end, we would appreciate any information you may have on the proper contact persons for the current antenna parcel fee owners. As we indicated in our meeting, we also welcome any additional title information that you may have uncovered in your internal records search that could add to the title summary we have assembled to date. We look forward to working with you to resolve these problems and continue our cooperative relationship moving forward. Sincerely, f' Frederick L. Busack, Esq. Pennington, Moore, Wilkinson, Bell & Dunbar, P.A. pLB/lb EXHIBIT A Title Search Summary 9/23/63 PB 5, PG 60 - Gulf American Land Corporation plats Golden Gate Unit 1. This is where the access easement from Golden Gate Parkway to the water plant site will be located on a parcel identified as Tract B in this plat. 8/29/66 OR 221, PG 410 - Gulf American Land Corporation conveys in fee the future site of the Best Western to Golden Gate Inn, Inc. 4/3/69 PB 91) PG 107A - Golden Gate Golf and Country Club, Inc. and Gulf American Corporation plat Golden Gate Unit 8, Part 2. This is where the water plant will eventually be built on a parcel identified as Tract A in this plat. 1/8/73 OR 530, PG 916 - This is the deed from GAC Properties Inc. and Golden Gate Golf and Country Club, Inc. to GAC Utilities, Inc. conveying the water plant site in fee and two 30' -wide utility easements that intersect the fee parcel. Notes: 1) The legal description of the fee parcel does not close. 2) The legal descriptions of the two 30' -wide utility easements appear to be correct. 4/30/73 OR 530, PG 922 - This grants a 30' -wide easement "for road purposes" to the utility, its assigns, successors, agents and, strangely, its "licensees." This appears to be interpreted to allow the utility to license others to use this easement. Notes: 1) This seems intended to abut the entire west side of the water plant site and extend around to an entrance contemplated on the southern boundary of the water plant parcel. 2) On the Relative Access Easement Location map, this easement is denoted in orange. Note that it does not appear to line up properly with the actual location of the water plant parcel. 3) This easement does not mention use for utility purposes so although the pipeline that was improperly placed apparently lies within this easement, it could be argued that this may not be an allowed use of the easement rights conveyed. There may also be a gap between the easement and the fee parcel. 6/18/73 OR 5385 PG 353 - This is the deed from Golden Gate Golf & Country Club to Gulf Communicators, Inc. for the fee parcel that contains the large antenna, adjacent to the north boundary of the water plant parcel. ll/l/73 OR 585, PG 85 - Golden Gate Golf and Country Club, Inc. grants numerous drainage and power easements to GAC Properties Inc. that will encumber the eventual water plant parcel and subsequent utility easements and access easements. 11/1/73 OR 585, PG 92 - GAC Properties Inc. reserves the same easements outlined in the previous instrument to itself and its assigns or grantees. 5/8/74 OR 589, PG 760 - This is purportedly a corrective deed to correct the legal description in the fee portion of the deed recorded at OR 530, PG 916, but the corrective description of the fee parcel does not close and is therefore a nullity. 6/10/75 OR 622, PG 787 - This is the corrective -corrective deed! It is intended to correct the erroneous legal description used in the corrective deed recorded at OR 589, PG 760 -- which itself was intended to correct the erroneous description used in the first deed recorded at OR 530, PG 916. Notes: 1) This creates the legal description of the plant and the two utility easements. 2) The easement on the west side of the plant begins between Lots 13 and 14, Block 281 of the Golden Gate Unit 8, Part 2 subdivision recorded at PB 9, PG 111. 12/20/82 OR 2848, PG 2969 (recorded as part of the Assignment of Interests from Florida Cities Water Company to the FGUA which begins at OR 2848, PG 2958) - Frank J. Callahan, Norman S. Edelcup and Juanita Rivera, being directors of Golden Gate Golf & Country Club, Inc., a dissolved Florida Corporation, quitclaimed their interest in Tract A, GOLDEN GATE, Unit 8, Part 2, as recorded in PB 9, PG 107A to Domenic D'Agostino, Frank D'Agostino, Marion (sic) Vocisano and Robert Vocisano. Note: 1) This deed specifically excepts the area previously conveyed to Gulf Communications, Inc. by the warranty deed recorded at OR 538, PG 353, but nothing else. 4/12/83 OR 1086, PG 181 - Frank D'Agostino quitclaims his interests in Tracts A and B, GOLDEN GATE, Unit 1, as recorded in PB 5, PG 62 and Tract A, GOLDEN GATE, Unit 8, Part 2 as recorded in PB 9, PG 107A (among other parcels) to Robert Vocisano, Mario Vocisano, Dominic D'Agostino and Salvatore Forlani, who are identified as a Florida general partnership also known as Golden Gate Inn. Note: 1) This deed specifically excepts the area previously conveyed to Gulf Communications, Inc. by the warranty deed recorded at OR 538, PG 353 as well as the areas purportedly previously conveyed to GAC Utilities, Inc. by the deeds recorded at OR 530, PG 916 and OR 589, PG 760 but makes no mention of the corrective -corrective deed recorded at OR 622, PG 787. 4112183 OR 1086, PG 182 - Sam Montello quitclaims his interests in Tracts A and B, GOLDEN GATE, Unit 1, as recorded in PB 5, PG 62 and Tract A, GOLDEN GATE, Unit 8, Part 2 as recorded in PB 9, PG 107A (among other parcels) to Robert Vocisano, Mario Vocisano, Dominic D'Agostino and Salvatore Forlani, who are identified as a Florida general partnership also known as Golden Gate Inn, Note: 1) This deed specifically excepts the area previously conveyed to Gulf Communications, Inc. by the warranty deed recorded at OR 538, PG 353 as well as the areas purportedly previously conveyed to GAC Utilities, Inc. by the deeds recorded at OR 530, PG 916 and OR 589, PG 760 but makes no mention of the corrective -corrective deed recorded at OR 622, PG 787. 3/30/84 OR 1077, PG 772 - American Cablevision Services, Inc., f/k/a Gulf Communicators Inc. conveys the antenna fee parcel and guy and power line easements described in the document recorded at OR 538, PG 353 to Florida Cablevision Management Corp. Note: 1) The description confirms the existence of the access easement recorded at OR 530, PG 922 that is located adjacent to the fee parcel. 3/30/84 OR 1077, PG 774 - This is a license agreement from Avatar Utilities, Inc. (AUI) to Florida Cablevisions Management Corp. (FCMC). This appears to be a license from the non-exclusive easement holder (AUI) to another entity (FCMC). This is usually not possible unless the easement is a perpetual, exclusive easement, but this seems to have been contemplated by the parties as indicated in the easement grant noted in the instrument recorded at OR 530, PG 922. Notes: 1) This is very important as this appears to be the only basis by which the cable company can access its fee parcel. 2) There is an indemnification in this license whereby the licensee agrees to pay "for any and all liability for personal injuries, property damage, or for loss of life or property resulting from, or in any way connected with, the condition or use of the premises covered by this License, except for personal injuries, property damages, or loss of life or property caused solely by negligence of Licensor." 3) This indemnification would seem to leave the FGUA without any responsibility to pay for repair of the road resulting from hurricanes. 2/25/85 OR 1131, PG 1230 - This is a quitclaim deed from Domenic D'Agostino, Mario Vocisano, Salvatore Forlani and Robert Vocisano, who are identified as a Florida General Partnership, to Avatar Utilities, Inc. for the water plant parcel and the two connecting utility easements. The legal description for the water parcel does NOT use the correct description found in the corrective -corrective deed recorded at OR 622, PG 787. It uses a different call distance from the point of commencement that is 685 feet south of the original description. However, the description docs apparently close. This therefore amounts to the conveyance of a second water treatment parcel located to the south of the original described parcel. Note: 1) In addition to the first call distance from the point of commencement, this legal description varies slightly in the remainder of the legal description from that recorded at OR 622, PG 787. It will have to be determined by a surveyor which is actually correct. 12/31/86 OR 1241, PG 2343 - Dominic D'Agostino and Salvatore Forlani quitclaim their interests in Tracts A and B, GOLDEN GATE, Unit 1, as recorded in PB 5, PG 62 and Tract A, GOLDEN GATE, Unit 8, Part 2 as recorded in PB 9, PG 107A (among other parcels) to Robert Vocisano and Mario Vocisano, a Florida general partnership known as Golden Gate Inn. Notes: l) This deed specifically excepts the area previously conveyed to Gulf Communications, Inc. by the warranty deed recorded at OR 538, PG 353 as well as the areas purportedly previously conveyed to GAC Utilities, Inc. by the deeds recorded at OR 530, PG 916 and OR 589, PG 760 but makes no mention of the corrective -corrective deed recorded at OR 622, PG 787. 2) This deed also specifically excepts the properly deeded to Avatar Utilities, Inc. as recorded at OR 1131, PG 1230. 1/15/87 OR 1251, PG 790 - Avatar Properties Inc. grants a 10' -wide utility easement to Avatar Utilities Inc. along the south side of Lot 14, Block 281 of Golden Gate Unit 8, Part 2. This increases the 6' -wide public utility easement that was dedicated pursuant to the plat another 4' and specifically names the utility company as the grantee. 3/17/87 OR 1270, PG 2130 - Dennis Getman records an affidavit that indicates that Avatar Utilities Inc. has merged with Florida Cities Water Company. 3/23189 OR 1434, PG 238 - Golden Gate Inn / Robert Vocisano grants an easement to Florida Power & Light Company to presumably allow power service to the water plant parcel. Notes: 1) The legal description does not connect to the actual water plant parcel. Instead it connects to the quitclaimed parcel recorded at OR 1131, PG 1230. 2) The grantor does not appear to be the owner of the fee where the easement was granted since the easement granted actually lies within the second water plant parcel conveyed to the utility pursuant to the quitclaim deed recorded at OR 1131, PG 1230. 8/23/96 Not recorded - On or about this date, Mike Acosta, a Vice President for Florida Cities Water Company, signed an "Agreement to Purchase an Easement" document that had previously been executed by Robert Vocisano and Mario Vocisano. Notes: 1) This is essentially a purchase and sale document. 2) The sale apparently was completed as evidenced by the recording of the easement below. 3) Paragraph 21(a) indicates that this agreement is not to be recorded. This paragraph also provides that the contract shall bind the successors to the parties. This would suggest that the provisions of the contract may have been intended as a restrictive covenant that runs with the land, but the absence of these specific words and the restriction against recording the document seem to contradict this interpretation. 4) Paragraph 21(b) seems to contemplate an ongoing payment of property taxes over the 1.55 acres that are encumbered by the easement. The payment is apparently intended to be the taxes for the fee value of the encumbered lands even though the interest being sold is only an easement. 5) if the document is deemed a restrictive covenant, it does not apply to the FGUA. (See Ryan v. ManalaRan, 414 So. 2d 193 (Fla. 1982). 6) Despite the claim that the contract binds successors, the FGUA is not in privity of contract for terms that it did not assume. There is no mention of the contract in the Utility System Asset Acquisition Agreement. 7) Even if the FGUA is somehow deemed to stand in the shoes of the Buyer in this contract, the sole remedy for the Buyer's breach according to paragraph 15 is the Seller keeping the deposit as liquidated damages. 8) Paragraph 16 has a prevailing party clause in case of litigation. 9/11/96 OR 2228, PG 1331 - This is an exclusive easement for the well located near the 1 st tee and Collier Blvd. (a/k/a S.R. 858 on the plats and C.R. 951 in a number of conveyance documents) and the pipeline that connects it to the water treatment plant. Notes: 1) This expires automatically if abandoned, but abandonment is not defined. 2) This can be used for more than 1 well. 3) There seems to be a belief that the FGUA is to pay for taxes related to this. There is no such provision in this instrument - only the unrecorded purchase and sale agreement described above. 4) This parcel does NOT abut the right-of-way so legal access, including power lines, is only currently possible via the water treatment plant parcel which would probably be detrimental to the golf course if the FGUA were to use the easement for power lines. 4/7!99 OR 2536, PG 900 - This is the Special Warranty Deed whereby Florida Cities Water Company conveyed the water plant parcel, and all other Golden Gate fee parcels, to the FGUA. The legal description of the water plant matches the legal description in the corrective -corrective deed recorded at OR 622, PG 727. 11/6/09 OR 4508, PG 1308 - Someone, without the knowledge or consent of the FGUA, records a utility easement from "Golden Gate Country Club owned representative" to the FGUA for an area that supposedly contains the pipeline improperly installed outside the FGUA's existing utility easement. Note: l) This does not appear to be the proper name of the grantor. 2) It does not appear to be signed by the grantor, but is instead filled in with a printed name. However, Sharon Romer, the notary who notarized the document, who is also the General Manager/Comptroller of the property, indicated that this was indeed the person's signature (apparently the superintendent of the property at the time) and that the owner had authorized the execution of the document. 3) We do no know whether the easement described in this document actually contains the pipeline that was installed outside the FGUA's existing utility easement. Summary of Title Problems for the Fee Owners that the FGUA can Help Resolve 1. The access easement recorded at OR 534, PG 922 encumbers significant land that is not used by the FGUA or any other party for access. It is therefore an unnecessary title encumbrance that can be removed if a correct combined access and utility easement is substituted. 2. The quitclaim deed recorded at OR 113 1, PG 1230 granted the FGUA a second water plant parcel. This significantly encumbers the golf course owners' property and the FGUA could quitclaim its interest in this second water plant parcel back to the owners to remove this problem. 3. There is considerable doubt about the actual legal description of the water treatment plant parcel since it has been conveyed a number of times and the legal descriptions in these instruments were not consistent. The FGUA and the owners could get a survey to properly describe the water plant parcel, its associated appurtenant utility easements and the new combined access and utility easement running north and south to the parcel. Corrective documents could then be prepared and recorded that would resolve the title problems for good. Due to the doubt in the water plant parcel description, it is likely the adjacent fee parcel on which the antenna is located is also defective. To make sure all parties are protected, both fee parcels should be surveyed with the surveyor certifying the survey to all three parties. 4. If the FGUA no longer needs the easement to Well #9 and a replacement easement closer to the water plant parcel could be obtained, the FGUA could vacate this long easement across the golf course and provide a bill of sale to the owners for any pipelines or appurtenances that might be in the easement. 5. The FGUA is the grantor of a license to the owners of the antenna parcel so that these owners can access their parcel. The ability to grant the license is indicated in the easement grant to the FGUA's predecessor in interest recorded at OR 530, PG 922. The FGUA could revoke this license at any time and leave the owners of the antenna parcel without access, but it has not done so because the license also provides that the owners of the antenna parcel will indemnify the FGUA for any damage that occurs in the access easement. Consequently, the golf course fee owners are obligated to look solely to the owners of the antenna fee parcel for any damages that may result from hurricane damage or other maladies. The FGUA could consider some more equitable solution to these problems for the two other fee owners. 7. Without the FGUA's acceptance or knowledge, someone recorded an easement over the golf course fee owners' property that was executed by the golf course owners' previous superintendent that creates an encumbrance on the golf course fee owners" property that is not consistent with other easement encumbrances on the property. The FGUA could vacate this easement if it is replaced by the combined access and utility easement outlined above. Summary of Title Problems for the FGUA that the Fee Owners can Help Resolve 1. The access easement granted pursuant to the instrument recorded at OR 530, PG 922 does not reflect the actual location of the road used to access the plant. The owners could convey a new combined access and utility easement along the actual location of the access driveway, also assuring that the corrected easement would abut the antenna parcel and the water plant parcel. 2. One of the FGUA's contractors installed a pipeline that strayed outside the utility easement into the access easement for a few feet. The owners could replace the faulty access easement with a combined access and utility easement in exchange for all the other title resolutions outlined above. Y i3 Yt41, M� N� • ~ I s 3, . :. SCALE � `S MINOR r�f I. u ✓hr..v MIYrq o EXHIBIT C �i/L97i ti.�r M�! •r' y bM11Y::dam s I E. iff[�nt L.a ;o,i /aO O iro HJ SCALE EXHIBIT D Rader and Asgoclates PLAT BML-L-PAWA-� Miami, Florida GOLDEN GATE Unit 1 A WWVISIOK OF PWnOKS OF SECTIONS 22 jV TWP495.RaL.24E. COLLIER COUNTY. FLORIDA. bu,'m���h`"�l�.�;yxF� �� :��I��`�,�' � ""sem in 'Wbv G IL UNT I Z190in. S'iF 2 Rader andAsgociales PLAT BOOK-'— PAM GOLDEN GATE Minfti, Florida Unit I p- 11 LDW =n—' r I I d tn!— GIEET P. OI! Rader orldates GOLDEN GATE PLaT> � Miami, hFlorida --� Unit 1 6 I II a -'---jL ----� All .�y TROCf --` # , 9¢aT 7 OF 5 Ander and Afsaelalci GOLDEN GATE°T BOOKs-U - Niaml, Florida --- Unit 1 .�t.a � M •M I — � www � y I I• 9 • - %4— ;—aiiE!_ •r•.rlr. � aaK -moi � �l • t U" • �,,,�� r� ,, I•i4— III `• i *KET 4 or 1 Rader wd Aiwclilea GOLDEN GATE SAT �°°�� �a Mumi, Florid■ ®-�- Unit 1 71 La r 4 } i m !v AV u i 1 U 11 y P3 1 MF6—,n'6-P►�wA'Y_- — u I nil lndentrim ,lode this 29th da►or August . A.D, to iE r ErI­ GULF AMERICA" WO COP L%'r1ohi1 a rlorida oatporatlonr party of the first Pari And r.OLD6N GAIL 1NN, INC., a F1oriJ■ eorpo-stleer, party of the rreped P•rt. +rhw lost an" sddrrr Is: Golden Gate Latates, Naples. rlorida. Wlt_%.tth. That Ibe saIA rant y or the fiat pan. for and in eanod •-tion of [he som of TEN IIWJ,AP.S AQP OTHER VALTABIX CO\Sl0F1'ZATIONS ra It In hand plld br the MM or the x tond P:'rt, the rrcelpL .thereof Jr hcrelr?' Ecknnn'ledned, has Resoird, ha Ataiard tied fold to she sold part y of the .eeon., part, its suceossormnd -ions. rc,,fr, the follow•I is drstptB�i Fla. FIt ale. 11109 lad bo - In the C..nly or Collier ___---DEGINNING At the Northamat corner o! Oloek 1, GOLDEN GATE, UNIT 1, an recorded in Plat Sock S. pave 42, of tho Public '•� p,• Records of Collier County, rlorida: thence along the Laat line of said Block 1, South 460 feet? thenen Meat, leo fact) erg thence North, 75 feetf thence Went, ]]0 feetl thence Eauth - - 75 feet, thence Mask 140 leek to the Wept lIoe of maid cr Block if thence along the 5fast line of amid BIOCU 1, Horth 460 feet to the South line of Golden Gate Perkwayt thoPce along the South line of Golden Gate Parkway That, X,Ys• +c �� part Block 650 feet to the Place of leginnirg, being par _-- 1 of ■aid GOLDEN GA?L, UNIT I.------------- _ And The sold part y or the flat parr does 1, ,y felly warrent lith• to said lead; Mode••' ellI dcfvad [be same a[alad (h[ raxfot dalm of It persons a'bemretecr. i;� In W;IMM Wharf the said pari y of the first Part has caused thele p' v.-te to be slgnod In Its -ante by its duly authorized officer, and;lthr:eorperfta meal to be affixed, the day and year above written. s. nml, so[.J find detircred In tyr rr•••rrs �+tart X10 - •..... GVLF AMRRICAN CORPORATION Is�:lj „.._..___...._�._.....—__.._ BYs.1.._�.._..-....ata•K"rYtiei'aa� _.-�. rLORIOA a,.r.,.. qou + •.+M,� r^` -�� �P ~ Side sf {..Drat coahrr. ,Losw 6rr.rr •1 DAM rerm..n r, scop M M pww rr,l 1 Horthy Ccrtity that an this day persen111Y •P►N^ta brfare ret'. sn offker duly sw tharlred to nflnamtter.albs and sake leknn111edg; tau, N. Y. CARMINE, JR., Am Vice President w CULF AMERICAN ;.AND CORPORAT=oNr a Florida ecrp- oration is me welt Roawn to be the pwrem described In and who ereeat.d the fcrel:oins dyed. and aetnow9edl[e4 before an that he rtecuted the "me finetY and roluutarllr fsr:'the p' pura lhereln expre-H as such officer duly authorized and afflilGvd_ -f•, thereto the corparete ee . L� rA,T) ds K Q ;a.n. t91�. With.. by hand and seat this � _ / _ ✓ � l[y conlntccion aspires: rnnotary Public (Notari ` Urf N6SI[ siorr .r ne[Ra a UKr N Ceva ::Ar.� t ::ate" L N. niJ.--- '�"•'-"� •']J(WbyFICIS or tauot4 VmOA, etolvN rd NICNOt1 j41` - IALG., oua.wae IYR[m. rLoiniph .. � sat -t.'.r � •� - }� .___ f_:1 � `���-r �-:'- padRl and ARWeltl61 GILT' 11 fla7 !Opts- AIRmt. Flor{da v1'J Vd/J�LME i..1' U ` IS - [na �. I..re a •r. r.» Ore swa Vi..,Ra N H.y i1" b. �I-as �M- CuG,ID��3 GI�li 3 15iaW�FWitl C .i � � 1 GGMIAT G�T D, Unit ry Part R.&f a" A."Cialu GOLD11K Unit@ Port? 9. e 312102 530 AE916 i i r' 7 WARRANTY DEED TNIs INDENTURE, Pada, this Ith day of January, A.D. 1973 BETWEEN GAC PROPERTIES INC, a Florida corporation existing Under the lama of the State of Florida, having its principal place of business in the County of Dade and state of Florida and GULDEN GATE GOLF AND COUNTRY CLUB, INC, a k•larida corporation existing under the laws of the State of Florida,' having its principal place of business in the County of Collier and State of Florida, and lawfully authorized to transact business in the State oL r1orida, parties o: the first part, and GAC UTILITxk:S INC., past nr1"+ra nnx B+N:. Ca•ie Cotnl. Florida 339011 a corporation existing under tiro Imre of the State of rlorida, having its principal place of business in the County of Leo and State of Plorida, and laxfully authorized to transact buaincas In the State of Florida, party of the second part, That the said parties of tha first part, for and in consideration of the sun of SIS^ -Y PIF- HUNDRED ($6,500) DOLLARS to it in hand paid by the said party of the second part, the receipt whereof is hereby acknowledged, has granted, bargained and .;old to the said party of the second Part, its successors and assigns forever, the following described land situate, lying and being in the County of Collier and State of Florida, to -wit: FEE SIRPLE TITLE TO THE FOLLOWING REAL ESTATE A parcel of land in Collier County, Florida, more particularly described as follows and being a paYt of the Plot of Tract A Of Golden Gate Unit 6, Part 2, as racordod in Plat Book 9 at Page 111 of the Public Records of Collier County, Florida, more particularly described as follows: Commencing At the Northwest corner of Tract A, thence running South a distance of 649.17 feet along the sleet boundary of said Tract A; thence running East 336.31 feet to a point, said point being also described as the Point of Beginning; thence run North e9" 54. 21" East, a distance of 333.15 feet to a pointe thence run North 0. 09' 03^ East, a distance of 75.04 feat to a point; thence run North 47. 07' 421 West, a distance of 196.55 feet to a point, thence run South 89. 44' 56' Nest, a distance of 184.50 fact to a point; thence run South 50. 091 46" west, a distance of 14.20 feat to A point; thence run South 116 04' 09" West, a distance .of 113.36 feat to ■ pointl thence run South 3. 45' 30" Rest, a distance of 183.92 feet to the Point of Beginning. UTILITY EASEMNT 'i, 530 lAuS17 An easement for utility lines 30 feet in width, being 15 feet equally on each side of the center line thereof, more particularly described as follows, Said line conaencing at the Northeast corner of Tract B of Unit 1 of Golden Gate Subdivision, recorded in Plat Bock 5 at Page 61 of the Public Racords of Collier County, Florida, and thence running Nest 96.15 feet to the Point Of Beginning and the center line of the easement herein deacribedt thenca run South Q* 02' 46" East fox a distance of 1029.80 feet to a Point; said point being the Southerly terAinetion of the easement herein described. UTILITY EASERENT An easement for utility lines located in Tract A of Golden Gate Unit, 0, Part 2, aeCDrd]n4S to the plat thereof, recorded in Plat Bcok 9 at Pace 111 Of the Public Records of CCllior County, Florida, more particularly described as !allows; A strip of land 30 feet in width, being 15 feet equally on each side of the center line Lnoreof, and such ease - Ment connencinn at the Southeast•corner of Lot 14, Block 261 of said Unit 8, Part 2 of Golden Gate Subdivision; and thence xunninc South B4" 19' 21" East along said c+„se-.c^: canto. l:rc for a distauec of 318.51 scot to the point of Easterly termination of amid 30 foot ease- ment heretofore described. L[. WITNESS NMER&OF, the said parties of the first part have caused these presents to be signed in its name by its proper officers, and its corporate seal to be affixed, attested by its Secretary, the day and year above written. GAC PROVERTIES ;NC. .Attes•ten_ By f I r. secretary , vice Preax nt Signed, sealed and delivered in•thw presence of us; etteatt' kl r Secreta 53gnedsa8led and delivered 'in til@•Qiesance of us STARE OP FLORIDA, COUNTY OF f GOLDEN GATE GOLF A COUNTRY CLUB, IN, By r. (U- (1 ht� t r vice Presidont 7Fr; 44LRA�:j COLMA topigV.% i;pA Her 30 & 13 AH 173 HAL T. SCOTT e 194 Couwii i10RM1 ?"�s+4�'4x5#lft,M.1. :c Kr.�.x •.L+ - 4 -,ti .i 53111AA18 I HMMOY CUrny, that on this�th day of January, A.D. 1973, before me Personally appeared Rab L. Heintraub and Gretchen Mielke , Vice President and Secretary of GAC PROPERTIES INC. and Robart L. Weintraub and Gratchan Mielke �. Yice Prasident and Secretary of GOLDEN GATE GOLF AND COUNTRY CLUB, INC., corporation■ under the laws of the State of Florida„ to Me known to be the parsons who signed the foregoing inatruloent as such officers and NevsrallY acknowledged the execution thereof to be their free Act and deed as such officers for the uses I' and purposes therain mentiopad and that they affixed thereto the official seal of said corporation, and that the said instrument is the act and dead of said carporation. "TVFSS my hand and official seal at Fliami in the County of Dade and State of Florida the day and year last aforaaaid. This Instrument Nae Prepared `• By: Notary public Robert L. Weintraub Attorney At Law 79BO 13iSCaynC Boulevard I „ I�I»i FL am 4.L�r•.:: VINCEA UZ ��•••••� :•iami, Plorida 33136 a^, `y FLONl;�A` •_'•~;ins_ �F; luas•'n r ; 0 7 15 = Hfu:1 � I.ji3 L� ;• y . . . . . . . . . . . . . tial., Y tln4M M,rf. �N •� �CCWC�i9,r�h, ll0ab4 ����" „_'•"•.i✓MJ"F�wi:�•�b'`G.•L��� � .""'.iii.-�:i.<� f 3121os 1 1 530 ..,-922 r_rrnarr nr rwcrMruT THIS INDENTURE, made and entered into on this day of April., 1973, by and between GOLDEN GATE GOLF AND COUNTRY CLUB, INC., Golden Gate Drive, Golden Gate, Florida and GAC PROPERTIES INC., 7860 Biscayne Boulevard, Miami, Florida, hereinafter called "Grantors"; and GAC UTILITIES INC., 825 South Bayshore Drive, Miami, Florida, hereinafter called "Grantee". Grantors being owners of the premises described below, in consideration of the payment of Ten ($10.00) Dollars and other good and valuable consideratior the adequacy and receipt of which is hereby acknowledged, grant. give and convey to GAC UP)LiTIES INC., its licensees, agent&, successors, and assigns an easement for road purposes on the property hereinafter described as follows: A 3D' easement in Golden Gate Subdivision, Unit 1, Plat Book 3, Page 61 and Onit 8, Part 2, Plat Book 9, Page 107A, more fully described as that part from a point at the Northeast corner of Lot 27, Block 261 Golden Gate Unit 08, Part 2 as shown on a Plat recorded among the land Records of Collier County, Florida in PlLt Book 9, Page 111, said point being on the South right of way line of Golden Gate Parkway as shown on said Plat, thence run along the said South right of way line East 282.20 feet for a POINT OF BECINNING and running thence from said POINT OF BEGINNING, along the center -line of a 30 foot road easement now described the following courses and distances. 5 460 37' 06" E, 40.91 fuer, thence along the arc of a curve to the right, whose radius is 209.00 feat (chord bearing 9 2 42' 57" E 112.60 feet) an are distance of 186.97 feet, thence S 0 16' 49" W 99-94 feat, thence along the are of a curve to the right whose radius is 423.47 feet (chord bearing 5 Bb 01' 27" W 114.12 feet) an arc distance of 114.117 feet, thence 5 120 11' 29" W 120.23 feet, thence along the arc of a curve to the left, whose radius is 328.55 feet (chord bearing S 00 20' 58" E 142.68 feet) an are distance of 143.83 feet, thence S 120 54' 55" E 99.68 feet, thence along the arc of a curve to the righ9 whose. radius is 562.68 feet (chard bearing 8 1 IDI 33" E 229.05 feet) an arc distance of 230.56 feet, thence S 120 51' 43" W 149.59 feet, thence along the are of a curve to the left, whose radius is 416.87 feet (chord bearing S 40 12t 42" W 125.41 feet) an ara distance of 125.89 feet, thence atony the arc of a curve to the left, whose radius is 51.00 feet (chord bearing 5 470 57' 33" E 7D.24 feet) an are distance of 77.48 feet thence N 080 31' 15" E 38.55 feet, thence along the arc of a curve to the left whose radius In 188.00 feet (chord bearing N 776 01' 42" 6 74.92 feet) an are distance of 75.42 feet, thence along the arc of it 7}ur Im uumenr Wu P -Pared Bye eve to the left, whose radius is 60.26 feet (chord bearing N 430 36' 09" E 45.02 feet) an arc Robcrt L Worttfaub distance of 46.26 feet to the POINT OF ENDING. Attwney At Caw 7680 Dtaeaync D—Icvard Miami. Flnd4a 33139 a� 53G <<4E923 To have and to hold said easement of right of way hereby granted unto Grantee. IN WITNESS WHEREOF, the undersigned have signed and sealed this Agreement on the 30th day of April, 1973. CORDO? -%TE SEAL CORPOitAti 'BEAI, S±AT-E OF FLORIDA, j "COUNTY OF MDE ) GOLDEN GATE GOLF ANI; COUNTRY CLUB, INC. D GAC-RUP=M'TES INC, I HEREBY CERTM that on this day, before me, an officer duly authorized in the State aforesaid and in the County aforesaid to take acknowledgments, personally appeared and Hobert L. Weintraub to me known to be the persons described in and who executed the foregoing instrument and they acknowledged before me that they executed the same. WITNESS my hand and official seal in the County and State last aforesaid this 30tb day of Aril A.D. 1973. Ron i du 9.,1.ML G61FJra i %MRgftI W Q �� DKuhTNTP,nY FLORI A �Ln Chi iiia c,n. ,uy�rn -00.5 5 WINK .oats STATE nP FLCRIDAI 8' DOCUMENTARY STAMP TAXI �� c pF!'1 Uy ALVFNUE -0200.301 a 105� Notary hiblic : z; BE.ou,- J =Fo.9dL ., 135 :64!l.P11r' 'r 'IN.% Mar 30 81 w nN '13 "LM. 01 "Cb1T MAT Cat"ER COUNTY.FLOAIDA 11-W L oftl.o ■o" 0EY/ �1 �9llN• C:OUM It 1—DA ��G�4[l 1, fWt1 �6• o a � 1 i ��• $ u" �p 1 rri 1 ,Vj x TIGG'i .; %lk'� -6671' yy� a 1xv CA y' ' i, 5 u �7•� �� n V� riV -P Z E _ ti L •L' I ' q 41; M T 1 1 n; Y• a *3Nl{8T�4'Itl'E ti i ti i MS. ', i hzt Zb 4' 543 i U) 5 BB' 59'54'7f L6'1_17' a2ia'\ t 1 _HAST 510.0' t11 w a eno SLK ? Opp fl jl^ p:q �i1�1 7 v o ! r rel ae cL1j Z� 8 za Jug �f In A `1 1.yel ' —� in W H .W 4io.a• z6t.ea• F -PARKWAY HO tfTilRM 70 h� ' ,....:w°:r�,..��..�, 316,146 hao,+_v's roll. "Y, 39ttrrnn#Li 7rrb ;.[� 53.5 . 353 ehi6 �Jni►rninrr, Ar.rr,fhis 1Nth d.,.f .lure .A.1) N73. OF11iUOLDEN GArr, GOLF 1, COl•\TAS ('1,011, .. rdrpd..ri,n r+risfin f andrr rhr loin of rhr Si.rr rJ Flv; idn . A.rwaA iu principal purr .f Arciaru in rA, C,w.IY of Collier frrd wrr of Florida , .ad .rrh—i:,.l m tarn... bwiarrr is the S+.rr of F4r,14, parer n1 ph, Rrra parf. ani GULF COAIhiUXiCATORS, INC. , 1320 Lafayette Streer, Cape Lural, Fluvida 33904 ■ rr.rp,v.rion rnfr+n} r.drr rhr Id— df fAr Se.ir of Florida , A—i-A ill p.Lripd Marr of bili— ;. eAr C—y.1 Lee and Sam.f Florida , sad !�,•Jrf[Y .urhorixnl rv, rr.rwe bwirw in rhr Sr.fr nJ flaridr, p.ny nJ rhr sm.,,l plat. A'1TYF_i4}711- Thar eAr -id p.rrY .f eAr Ji.v ran. Jar rod is raarrdrr.rinn .1 rhr err. of TEN AND NOJ100 ($10, 00) f/d4ri rn it .n h..A paid h, rhr said parer 1 she .roof prrr..hr rrrripr .•A—j u h—kv arl.n. dMjjrd. has jr—rd. Aopinrd rad rdd so fhr said prriv of rho errand pv+, i. srrrrrn,rrs mad a ,ijal rhr f..ffrnrinA dr.•rihM lad nfr.ir, irinR and hr+nfr in +Ar C—tv df Call, e r rad Srrrr..J FforiA, rr..rir: See Exhibit "A", attached hereto and made a part hereof• Lk 5 10 ;!s,U� rT�' = ,�'1_`•'•f'J.•:�•_ °L °� 5' COLS i Ar "CWT COURT / A CRY!!i1',fL4A101 ISTATE vF FL DOLUMENlARY/.�, STAMP TAXI _ per,—w utviriu. l e .. re=mt•�u`\/\1�°0.30 And eAr -;d p.ry of rir Jrr.e pari dar. hrrrat hill r.rr®f eAr rifle l„.ai f y,rl..ad riG drfs.rd rhr tsar.pint flet L.rfr!.J.;r.. of rf! p'—' ,r}1nr,r.,.,,•r, ThSs Instrument Was Prepared By' Herbert L. ]'diner WAC Properties inc., 7680 8lacayne Blvd., Nivel, rla. 09 J— A, .w P—ly ..j 1h, Par P-1 L. C. -a th— pr—', f. L- ..Mrd . .d ;J. ­Pr"fr M.1 8n br morard bv m S ­rt. . A.- Ay and (1qJ.DT;N.c,ATE. 1�OLE C L) V.X 1 R1' r I.L. It, A. pr—, of v.r de gorl(fg. th.f ar rA,6 lkith dv .1 June I— pp -,r.1 Robert L. Weintraub ViCe ;ATE GOLF k COUNTRY CLUB i... ej ride . 1. ­ fi.— fi, hr IA,, p--.. h,. J- - "h nftrrn and --*fir YJ­44r4pj 1h, yh-­1 j. J, jh­ Jrr_( _d r,- I— thr 6.r. e f ih-IM -U1-1 "d I"J III. -Y fhr and (hat ihr -.f iwom­o . fh,- —t -J MiAml Dade ..dSw, .1 Florida of On is YI oil 538 1, 1 355 4 )�t t tl t 1 rt 41� "nr•` :7 G11 iw,.,uu•rr, Ir.. Tnlr /r Y11,T Ik+crlrtlon 3rR1a ata /•fat, carn.r F,�rr 1. 731.50 1•el S..rT r ]14.11 r•I[ 4•r M IYr M[ahnllt a•n+i al Tra+E 'R' .( GIJrn Gts ]•'+. [•f ar•a, l:nit F, fart S. a• ah rm a a llrS [Trrasl N[HY1 In liu 6«A 1, 111.1 1P7-711. 01 Iha IAIIR 1N +1 Llllar cr4nl/•aharr[rF• a i.r17+ Sl'1�1n•i11]114 lrf •l�F•141J • rriala Ir}nn1 rr 4u 1l- .1 In <••+ R+••4•an u• o F d C•n M1Sr LLIT LLIT a<Y•lh•.l] ,Iwa tT1 us +f . nrY• tY [M Irfl Mwla fa•twl 1. II1.FF fes[ Faf char• r•lrll 1 1' 31 or 1•r a. r[llnraa •[ 13.31 lf•r 1+!•rrr nueYr ]i rack• :l. 11' 44' EL' L. R7. ]! fr•I a [ra Yr a.cler /: lhrvla 7- 11• l]• 1144 [. 114 J9 fwl 1• a•rr1 auAra 3: thf+•s 5. ht Jl•7r^ ■• Ia, a{ f•rt t. fYhr1 •a+{u L1 taa•a• 3. Sb• PL' Jf' 1J.I9 Y. M[ la a•rws[ •+•Yrr 1 TJ lh• !•ut a[ MRI -L4 . U.—.: A •lr[I •f ]rl li frr[ rl/[. 1 ffrl r arrY HJa •1 lk1 J++l•r]lar nsear[tr1 a1 f•If. 1. rea4a •+ . laiaa w llnl ]•[ •I [AI IMre /rur11M IMI tutrk }4.11 I—(]� rrrn• r erJrr J. NIA 1L.1 L. .31.11 fn[ 7••lh snA 112.1] !nt ul[ N rrtr 'ar[hn•e e•ry,•r a[ Tran Ellen Gu Y aery a+ eaW—, r/M Ia Illi +ea{ I, tun Ip)•i]2, hll![ Aalar{• of p•151N GW+11. Il•rllrf lf'Iakr Fr F. WSp' Q' Y, r100.11 }n[. Sl.JFMT fnl Ir[•m,: a�K +, .{Id I. RIlu at + lain• m l lti tri al Uu r[n1 Yn<SIY•1 Irrr rrarr w41 1• I{+.IL /rat 1w1Y an[ t71.1J fir[ Leri +f In• [YISY.erl rsnar el TrArl•a^, Calt L I. r. 7. sf GIIn Ota S„ea lvlarnn, •• r rFrk la tl+t lark 5, }mow 1p1 -]It, },61le FrrrrJ/ •1 Gl]Irf Cwn[T• Ilarllu }r[I rr f. ]7' 61' al` L.T1ll. )i flet• R+L1' 4ar+ralt r lr •r l+M ]] Inf •Ha. L 1•N r aria 1111 dn era rrl lar l••rrl{Il .. Id lr,: i+Ila u . uuc [• • I rh• C.lal 1[. •1 r a r•+r r.".rens W lnelMN rl In ul rrll-.-ir.rJr++twr r•w rlr. fall I11n�Lr1aR 111.11 Ir•l I�F4 oP 1.4.11 fu[ [I+[ all rIT 'i rllrv. •t rn,M• Yl ir+•r - M'•t.�rJn c tri aim, l•[r t, }err 3. as •k•.n . [4•r Ylf rrr r In tit[ •-r.. +. 1'•rn i l;, e't ! 11.• I •t+ry TJii[rr ,• a• +1 Lrlll Rr 3••+•rrIl•r lJs. wt ♦ri R • al• ' !••[ • t r 1 1: T.•nr .. T7' 11' 10' Y. 111.+P r•Ir as W Yla[ firs al]na.l T•ur ^A' eo-l^lr'r Wk Elr A s! Iw[n11� 11— M- lou a, Pul 1,,0.1h• 1 a•MT ••rill• l•1[ Uw ••f••+ n •l N,. a, wl• -fir •-• fl r•IlIr Tr Lr+Ir11. 1[71. �.ra Iv arw4rlr �' n I , Irr dl+ a+R +,IIIM •1 lra yw 4w Lu1, Tlar f:, '. 4, r+, +r,/ a r1•• rr1 ' }atff•If 5. 15:! .. e a t •1• I .�5. 1wrllu Y k•Klw Irrwrr _/s,�'}' � • H Py rMa .aLM I, Irrn1�)I� •r R+aw a4[ r: 344408 ii 58 ►ur 9 �N 1S cONVEYANGE k' OF DRAINAGE AND POWER LINE EASEMENTS TIIIS INDENTURE nand and entered Into this ]rt day of November. 1977• by and between Golden Ga to Golf and Country Club, Inc.. Grantor and GAC Preperti e■ Inc, 7f1SO Biscayne Boulevard, Miami, Florida, Grantee. Grantor, hrraby In consideration of the payment of $10.00, the racalpt of r which rs hereby acknowledged. grants, gives and conveys to GAC Props. -.i" Inc .i1 of its totcrest, ownership and title to the drainage easeinanta and parer line surveyy.�l1 and dnwrription mlements that 11 awns as contained and found In the�pla tTvhtch a attached hereto as ]Crhlbtt l and made part hereof, which le located In Colller County, Florida. IN WITNESS WHEREOF• the undersigned have elgned and sealed this I Ell"i"ent. on Lha date h rat above written. • GOLDEN GATS GOLF AND COUNTRY r, ,(Corporate Seal) CLUB, INC. __�.t1 �1�',t By .%.......lac. .� 7 Saccretary Tice President p�. CL t � s� li'�m t;QkT1.TLU4'il �[/� •�'�� .-- An i 1 12 WN f'{` MWGARETT,SCOTI 'r ccx CLf t rtMCstl L4Uie CtiYnY.fL� STATE OF FLORIDA } } COUNTY OF DADE } I HEREBY CERTIFY that on this day, before me, an officer duly authorized In the Stale aforesaid and In the County aforesaid to take acknowledgernants, Personally appeared Charles Dully, III and Gretchen Walks Vire president and 9eeretery tmpectivaly to me known to be the parsons described in and who exacuted the foregoing Instrument and they acknowledged balers me that [hay executed the same. WITNZSS mr hand and official Masi in the County and State last Aforesaid Lbi■ l._L der of 4)1 o, _L� A• D. 1973. `I::'" :,� •� e Instrument vai Prepared by: ✓Norbert L, Fehner Notary IR ,71 GAC properties Inc. 7ERO Biscayne Blvd. 10011. Mite, ttATt d n Loa btymprat��on exrt 'Armic 19, 1971 tris ttnuv. tMPAM >: tNs[LetLettt Miami, Florida 31138 19apts ni 585 na 86 f JOHNSON ENGINZERINS, INC. rive. rnaN44tna woo "mo aunvrrons tic 585 w 87 DLSCRfyr1OCS DPAV;ACE E:S2'-=TS '[1iX011Cii COLOES GSI COLT COL'g5_ JM Col. -SM d.0 PDOPE3SS LOfa7ED L\ 5ICI']0:: 7: 4 27, ., 49 S., R. 26 E. COLLIER COLYSY, T XIDA Pareela of land to be used for drainage eaaenanta, varying in vidtha, meancc-ing through property now or iamerly, of Cold"a Care GoLt and Country C1cb,'Ine. located in Sections 22 i 11, Township 49 South, Range 26 East, Collier Ccm w, deride, the aaotarlina of said •aae- mars Lc1ng raadrilted ae f"Il res: True the aeurhaaat corner of Lot 12 In Ileck 272 as theta an "Plat of Golden Coca, Unit 9, Part V as racorded in Plat Bonk 5 at pages 147 throtgh 131 of the public records of Calller County, Florida, run 8 Be' 24' 16" t for 17.57 fast to the Point of Beginning of arta of the herein described centerlines. Trow said Point of 6agSr inR run along the cAntarlins of a Drninahe faaeccor ly:r.- 35 'ecr each side of said center)Lr.a, Cha folleving courses and Gia Tar, cos, Y 00' 03' 04" R for 336.63 fact to Point 1, N 11' 05' 20" V for 163.59 feet to Point 2, N 1. 74' 44" E for 540.10 to Point 3, S 21' 33' 44" E for 261.73 feet to Polar. 4, W 6' 13' 36" I for LIa.19 fear to Point 5, N 19' 47' - 26" V for 127,77 fees to Paint 6, 7f 42' 54' 28" W for 133.05 feet to Point 7, S a7' 15' 4r' V for 156.55 feet to Poiat S. N 50' 40' 32" V for 213.15 fast ro Paloc 9, K 53' 23' 17" V for AM IN feet to Polat 10 and N P 33' 44" 4 for 15 Inc to the so"tberly e of the division lies batveen lots 40 and 41 as. shown on "Plot of Golden coca, Unit B, Part 2" u recorded in Plat look 9 at peen 107 through 112 of said pub Lie records and the and of oald , taacerlin■. Degla At the above mentioned Polar 7 and r® along cba cantor - line of an ataeaent lying 33 feat each aide of raid canurlina N 37' 04' 32' V far 168,60 feat cc Point 11; thence continue along a centarllne of on &amount lyiag 19 feet each aide of thA • ....•`• follwing daacribed centerline, N IV 54' 34" L for 190.24 feat "'- to03 Point 12, N oo' ' 34" V for 234.06 fear to Polar 13, s 39' 14` 59" V for 165.98 fent to Point 14 and a paint of arra; &.02 to continue nlong told contarline, along the are of a curve to tho right having +i radius of 202,17 feat, an arc length of i31.33 fast and a central angle of 37' 13' 26" to a point of tangancy and Point L51 thou continue along said to tsrllne N I' 01' 32" L' rr ici- a":,=� •`..:.:. JOKNSCNI ENOMEMNIM INC. 'arsIilPTZONS r Arafaage asaanenn in I1L ��J Golden Gare, continued -2- Pw Ba 171.41 tale ra Point 16, N IS' 57' 24" E far 153,32 feet to Point 17, A 75' 47' 35" W for 233.64 feet to Polar 16 and X2fe'S S'G L•'E �yr 94.03 fear to the nortboasrarly and of the division line batwe:en Lots 21 and 22, as shown on the aforesaid plat of Galden Care Unit 6. Part 2. Begin at the above menrloadd Point 11 and run along the canterliaa Of 4n ealenent lying 19 feat each Bids of said cenrarlint the fallawinb cowries and U5tances, 9 51' 26' 1L" L for 291.06 feet to Paint 19, 9 31' 06' 14" E for 93.97 feat to Point 20, N 21' 40' 08" E for 325.31 fast to Point 21, V 10' 24' 30" E for 125.62 fast to Point 22, 8 00' 03' 12" E lot 2066.61 feet to Paint 23, N 11' 27' 4d" W for 71.79 fast to +oiar 24, X 22' I6' 44" W for 226,65 feat to Point 25, Y 2. 04' 34" W far 158.30 to Point I6, and C 1' 16' 24" t for 130.03 tett to chs end of said centorlina or the touthar17 r,ght-of--,�,y line of Golden Gate Parkway lying 17.09 fast, me zaaoured al—S acid sautt.erl- righr- of-way line, test of the nartheaat corner of Tract 1 u 4h-V� OR "F'ar of Golden Cate, Unit 1, pert 1" an retarded in Plat Nook 9 me ;rias 1CD through 1D1 of Raid public records. Basin tt the above rvtntioned Point 16 and run along tho cmunrer- line of an aastaant lying 19 fast Bath Bide of the !ollowins described tonterline, % 79' OS' A for 21.67 feet to the end of .aid c.oterlim. and the east line of the aforesaid Tract 1. 34.73 feat, as camoured along said aaat line, from the northeast tar- mr of said Tratc 1, ea sham w said Plat of Oaldan Carl, L';tit 1, Part 1. Press the above aantiandd Polar 10 run i 33' 23' 11" E for 313.73 fear, rc the Point of beginning of the eeatarlina of an esi=anc lyleg 19 fear each Bide of the following described centerline, 7rm said Paint of eegirninb run 5 36' 36' 41" W for '13.69 foot; Mitten MID SOUTH for 128 fast to the norcher17 and of the division. lint between Lots 21 and 21, as shown on the eforoseld "Plot of ,t�'Fir190rY EN6wEERWG. INC. DESGLIMOSS ,�j[ 585 cast 89 Drainage eaanerht■ in raided Cato, continued -3- Co1donCate, Unit 8, Psrt V. login at a Point at the northerly and of the divialoo Tina bemoan Lots 3$ and 36, as sham 09, the afarcraid"Plat of Golden Cate, Veit E, Part land run along the c4ntarlina of an eamaosat lying 35 fast cacb aide of the following Lacribad Ceorarlina, X 18' 29' 38" E for 70.28 fast co Paint 27, N 5' 01' 03" E for 345.03 fest rd a point of Curve and ro the ■auah- arly and of a eastetlins of a drat -nage easanent lying 23 fast each aide of the following described centerline; thence run along Cha are of a curve to chs It ft, having s radius of 698.09 feat, an are .length of 201.23 fact and a am tral &n1le of 17' 05' 32" to r point of tangency and Point 19; thence rmo AIMS the can- tarline of ineaseeant lying 3S fact each aide of the following described centerline, Y L2' 04' 27" V for 207.49 fast to Point 13 and a point of curve: chance rots along the ate of a curve to the left having a radius of $28.89 feat, en are Is.Za of 120.37 feet and a central angle of 13' 02' 24' to a paint of Congency and Paint 3L, F 23. 06' 31" V for Lb1.49 fast to Point 32, S 33' 31' 53' V for 141,89 fast to Point 33, S 40' 08' 35" V for 226.44 feet 'o Point 34, S 25' 29' 15 V far 55.06 fete to Point 35- N 6'29' 021E for 4:6.42 feet to Point 36, 3 00' 47' 46" V for 91.34 feat to Paint 37, X 12' 01' 2O" V for 171.94 fast to Point 38, V 9' 16' 30" E for 369.91 feet to Paint 39, X 9' 25' 08" V for 547,53 feet to P"int 40, 1 7' 37, 34" V for 163,71 feat to Polat 41, N 7' 31' 17" F for 367.92 feat to Paint 62, 11 a'431 48" V for 1L2.90 lost to Point 43, X 34' 25' 30" V far 7742 font to Point 44 and X 69' 36' 23" V for 133.33 font to the ■outhorly ri:ht- of-voy line of Callon Care Pat'Yuay and the and of said centerline, said point lying 180.24 feet, ad oeaaurad slang maid southerly tight -of -wry linin, LUT of tha northeittorly totter of Lot 27, Block III &s shout, an "Plat of Colden Gard, I:nic a, Part 2", as raoetded in Plat bolt i at pages 107 through M. Train the &buys mantitmad Point 27 run 11 5' 01' 03' E for 116.26 feet to the Point of Beginning of a drainaga emczent lying 19 feat an mach aide of the following doatrlbed contarlino. Prom'aafd Point of Daginning row N W D6' L' for 141.4& fact, V 35' 49' 49" V 420.12 fast and 1 67' 00' V 10.00 feat to the and of said centerline and the mortheastoily end of the division 314& barvean lar* B and 9 In Hack 3a0 as shown on the afnruaid ,plat of Golden Gate, Unit a, Part 2". JOHNSON ENLi11NEERINO. WC. nESCRIPTIOSB 0raiuZe easeeents in IFF QF 585 pa 9Q Golden Gate, continued -4- Begin at the abwa cautioned Point 40 and :un along the eartar- line of on ease.-6ent lying 19 fact •orb aide of the following de- scribed eancavline i 81' 09' 49" 9 for 172,'8 Let to a point of curve; thanca run along th¢ are of a carve to the left having a radius of 115.99 fact, an are length of 15,.43 fact and a central angle of 66' 44' 3i" ea a point o1 tangency; Monte ret E 16' 24' 55" V for 118.63 feat ca the aaiterly and of the division Lina between la u 15 and 16 in Block 281 as shown on the aforesaid "Plat of'Colien Cate, Unit 8, Part 2". Fees the above mentioned Poir.c 33 run X 6' 29' 02" E for 778.32 fact to the Point of B¢6inniag o; a draina8a aiasmant 17in1 35 tut on each aide of the loll—ins desetibad centerline. From said paint at teginning run 1; 72' 13' 09" E for 219.98 foat to Point 45, F 72' 13' 13" E for 31-59 fast ca Peinc 46, S 49' 16' 53" E for 122.03 fact to Painc 47, X 33' 21' 53" 8 for 7].65 !a Paint 41, g 7' 37' 07" E for 49.03 to Paint e9, R 7' 33' 39" V for 103.12 to Paint 90 ani a point of curve; theme run along Cho are of a curve co the right having a .adi uc of 109.70 fact far an arc length of 105.92 :get ant a central angle of 55' 19' 12" to ■ point of taa.gcnty and Point 51; thence run Y 47' 25' 1]" L for 120.32 fast to point 52, K 39' 2E' 43" E for 169.10 Gat to Point 31, S 29' 27' 25" 1 245.02 fait to Paint 34, X 40' 36' 51" E for 49.76 to paint 55; thanca eentinwa X 86'59' 39" E far 267.17 fact, w 62' 15, 59" 9 for 114.92 fast, X 27' 09' 20" E for 210,93 fact, X 30' 46' 59" E for 148.86 fast to ■ point of curia; thanca run along the etc of a curve to the right having a radius of 211.63 feat for an are length Of 303.77 fact having a caurral mgla of al' 23' 10" to a point or tsatency; thence run 5 86' 49' 53" 1: for 137.02 feat and X 00' 37' 39" 4 for 175.92 rut to the southerly right-of-way line of Galion Cats 7arkuay and the end of sold centerline, oaid'paint lying MT 31 feet of the northwest cc roar of said Tract 1, Coldan Gate Unit 1, Parc 1. JOFINBON lNpINEER1Np, INC, Litt 58 P,W si DtSa[MIO%S Ormineje Eaaatenta in Coldam Gate, a"tineed -•3- login a the above ean:Sona4 Poiat 55 and ran F 00' 12' 39" k for 59.13 Leat along the. eanterUna of an ■maannt lying 20 feet arch aide of said cantarline mad madiag at the aourherly and of the division lane baween Lots 11 and l2 in aloha 2 ea chant an the aforesaid'Plat of Coldee "to, licit 1, Part 2". Sc=in as the above nencione6 Paint 47 and run alone the center- line of 1 drainage easeoaet lying 25 feet each aide of the tol- lwning deseri6ed ctncerlina. N 47' 16' 03" C far 66.91 feet to Point 56; thence ran S 76' 39. 11" g for 152.56 faec, X 6!' 2e' 33" E fat 250,69 =eat, S 23' DO' L for 26.10 face to the and of said canterlina at the nartharly end of the div±tion lana be- eveen Lori 6 and 9 u shown on rho af0raaaid "Plat of Caldan Cate, Unit 6, Part 2". Frac the above mnrianed Point 76 run N 76' 39' 31" E for 75.19 feet to the Point of HCg—niag of the eeararlina of a drainale easeaant 17iat 10 feat eath side of the folleatiaj described cancarLiae. From said Paint of Heli .Hina run S 11' 00' C for 34,16 feat t0 the and of said centerliee tying at the northtrly end of the division 111Me batve•n lata 4 and 5 As shavn an the aforementioned Piet of Caldan Coca, Onit b, Part 2, no/de F A3 E Y FL -TAMP A l �.R w COCUME iARY $TAhAP 1A%i. y OCU tiTEkll 74 "K: :� � FLORiga\ SLIR[Ax = :0a55 no/de F A3 E Y FL -TAMP A l �.R w COCUME iARY $TAhAP 1A%i. y OCU tiTEkll 74 "K: RESERVATIONSor 99 ry C ryy DRAINAGE. AND POWER LINE EASEMENTS lif Sail fig 344410 THIS INDENTURE made and axecuted this lot day of Navember 1477, by GAC Properties Inc. 711'0 Biscayne Boulevard. Mlaml. Florida. GAC Properties Inc by this Instrument hereby exprassly reserves to Itself, Its assigns or Itranteas all 01 its interest. ownership and title to the drainage easements and -eowar line essementa that It owns as contained and found In the ■urvsy and description platA`whieh is attached hereto am Exhibit I and made part hareol, which Is lorsted to Collier County, Florida. IN WITNESS WHEREOF, the undersigned have signed and atalod this Easement on the date first above written. .1: rparste e9l) GAC PROPERTIES INC 1 1 •'AYr' urtSetr rag _1 Vice Presidant anCutg`iciiigty OIL' Itillislur.rLO i r » rx STV STATE OF FLORIDA MA1161i1C7 T. SCOTT [al As qr ;�Erpll COW 1 rntut cnu�tr,rt os COUNTY OF DADE 1 I HEREBY CERTIFY that on thlo day. before me. an officer duly authorised in the State aforasald and In the County aforesaid to take aeknowledgaments, personally appeared Robert L. Weintraub, Vice President and GmTohen Nialke, Aset. Secratin to me known to be the persons described in and who executed the foregoing Inatrumaot and they acknowledged before me that they executed the same. W1TN£Smy hand and afileLal seal In the County and Stato Iash'YT01t'eeaid thlaLday o[ iX GrK I!/I� A. D. 1973. 7'hi Lutruwmt res Prepared by, Na (fit ydeCf. ✓Herbert L. Fehnee ttt'�oo� eYf,M FAC Properties int. ,r to, n—• :•••'•`�. m 7866 Biscayne Blvd. flfamt, Florida 33135 11C 585 rAg 93 f� im JOHNSON ENGINEERING, INC. CIVIL 9PM14CCRM a D 6ANO ■VRYCY0142 Vit 585 PvA 94 MCKI rloxl D31UXAGE iNTot W GOLDEN CA7g COLT COME AC COL'= CLV1 `gOPFRl'f LaCATED IX SECTION 22 L 27, T. 49 S., R. 26 E. COLLIER Comr. FUMMA Parcels of land to be used for drainage sasanenta, varying in vidths, aaandering through property nuh or formerly of Golden Cate "If and - Covntnclub,'Inc. located in Became 12 L 27, Twnahip 49 South, Range 26Sasc, Collier cowry, Florida, the eaotcrliea of said c" - nan" Lting describtd as follows: From the southeast corner of Lot 21 in Block 172 as shown Do 'Ziac of Golden Gat., Unit B, Part 1" OR recorded in Plat Beak 5 at pigen L47 through 151 of the public records of Collier County, Florida, run N Be* 24' Ib" E for 17.57 feat to the Point of Beginning of ons of the herein described cancerlinea_ Proem said Point of 2erinning run along the eentarline of a Lrnin2ga Easaunt lyi rs 35 •net tach aide of maid ear.ecrlt", ;he :aliwina cauraea and distances, V 00' 05' 04" W for 336.62 fee: to Point 1, H 11' 06' 20" W for 165.59 foot to Painc 2, N 1' 24' 44" X for :80,10 to Point 3, E 21' 55' 44" S for 262.73 feet to Point 4, W d' 13' 56" t for 118,19 feat to point 5, 11 19' 47' I6" W for 127_77 feat to ?dint 6, N 42' SU 21" W for L53.05 feet to Point 7, S 17' 13' 43" W for 156.55 feet to Point 1, R 50' 40' 3:' W for 215.15 fact to Point 9, R 53' 23' 17" W for 678,58 foot to Point 10 and A 1. 35' 4411 W for 15 feat to the southerly enj of the division Blas between Lata 40 add 41 As shMn on "Plat of cold" care. Unit 1, Part 1" u recorded in Plat look 9 at poles 107 through 112 of said panne retards and the and of said ' tontsrl.ina. login at the above saarlanad Point 7 and Elio along the canter - ILEA of so teawat lying 35 feet each side of said centerline R 27' 04' 3I" W for 166.60 feat Ds Feint 11, chants continue slang a asnrarlina of An easmmc lying 19 feet each efde of the �':'���f•`• foilaaing described centarline, If 12' 54' 34" B for 190.24 feet to Point 12, X 00' 03' 34" W for 234.06 feet to PoiAt 13, X 39' _•, 14' 5 1" W for 165.!6 free to point 14 and a point of carv*, t.oaca •• Ceatinaa along sold tehrarlina, along the are of a curve cc the lair ...... right baring a radius of 202.17 feat, an are Seatch of 131.35 w. feat amid a central angle of 37' l3' 26" to a point o: tangency �"�"—•�hAMW4 sad Point 15; thence eaadaum along said eanctrlin■ X V 01' 32" V r�r. s.tr�rr /aY 1251I-Yrvlrl r1,�1, JOIN ISON ENOIMERWO, 1NC. DESCMPTIONS Drainage ea mmnta fo8 Golden Gate, cootinueJ -2' Ot 585 P1<G[ 95 479.42 fact to Paint 16, N /S' 37' 24" 1 for 453.52 !aac to Paint 17, N 75' 47' 35" V _`or 253.04 fact to Paint 16 and X 36'S6'il"E'or 94.03 feet to the northeasterly and of the division Line batwean Lots 21 and 22, as ehavn an the afaressid plat of Golden Gats Onic 6, Part 2. Felin at rhe above vsattonad point 11. and run slang the eentarlina of an madegsnt lying 19 Ease each aide of said can urlins the faIlo�,ng aauraae and distances, N 51' 26' 11" t for 293.06 fact to Pain: 19, X 31' 06, 14" E for 95.97 fear to pniat 20, N 21' 40' 00" E far 326.32 feat to Paint 21,N 10' 34' 50" E for 125.62 fact to Point 22, N 00' 03' 32" E far 2006.01 face to Point 23, X 11' 17' 46" V far 77.79 fact to Point 24, \ 22' 26' 44" V for 226.61 feet to paint 25, N 2' 04' 54" Y for 158.30 ra paint 26, and H 1' 16' 24" E for 130.03 fees to the and of said centsrlina at the mouth Orly right-of-way ling of Goldan Cate Psrkvay lying 37.09 feet, an eesau=sd along said <outhotly -Ilht- of-nq line, mast o: thenortheast corner o1 Tract 1 as mt,ara o¢ "Plat of Goldan Gate, Ilett 1, part 1" me recorded in Plat look 9 ae pexis 100 through 101 of said public rscards. Begin At the above naationad paint 26 and rum dionB the eaater- line of so aaagaaee lying 19 feet each side of the :allouring described canierlina, N 79' 05' V.far 21.67 faac to the and of said untar2lwa and thm seat line o9 the afarnsaid Tvaee 1.34.75 [, as ocasurad along amid east line, from the narthaamc car- atoar of amid Tract 1, ss aboun an said plat of Coldea Esta, Unit 1, Part 1. Frog the above eantlanad Point 10 run S 53' 23' 17' E for 513.73 feat m Lbs Point o1 Beginning of the eanteriina of me awa=ent lying 19 feet each aid& of the following described coaesrlina, rraa mail Point of BoIinning .run B 36' 36' 43" R for 113.63 fact-, Chance run SO1'10 for 120 faac to the northerly and of Or, division line be can ]eta 21 and 22, es show an the aforesaid "Plat of JOPLNAON FRGMlRING, INC. DESCLIMar3 IRC 585 rw 96 Ztainage maaoento in 0oldta Cate, watinund -3- Golden Gsta, Uolt 6, Part 1". gagin at a Point me the northerly and of the division line between Luca 33 and 36, as ■how an the afaruald"Plat of Coldaa Cate, Unit 6, }Art 1'; and run along chs centerline of an sesaoent ly1r.S 35 feet each side of tho following daacribad ranterlina, 3 18 29' 36" E far 70.26 fast to Point 27, % S' 01' OS" E for 346.03 laic to a point of curve and to the meuth- arly and of a centarlina of a drainage adamant lying 25 feet each aide at the fellwing described centerl'_nc; thence run along the aro of ■ curve to the left, having a radium of 698.09 feet, an are lenstb of 206.23 teat and a central angle of 17' OS' 32- w a point of taaganty and Point 29; thence run slang chi can- tarlina of an etzent lyial 35 fast each aide of the fallowing du eribad can ,Ifna, Y 12' 04' 27" V for 207.49 feat to Paint 30 and a point of eurv4l chance run Almz4 the are of a curve ca the left having ■ radiva of 328.69 fate, as Are ion -,ch of 120.37 feet and ■ central sngla of 13' 021 24" ca a point of tangency and Paint 31, Y 23' 06' Sl" V for 187,69 faer to Peine 32, N 33' $11 55" V far 144,69 feat to Point 33, ; 40' 06' 33" V for 226.44 feet to Point 14, % 23' 29' 13" V for 3S.04 feat to Point 15, N 6'2P' 0F'C fori4f.42 fast to Point 36, X 00' 47' 46" W for 91,34 feet to Polar. 37, N 12' 04' 20" % for 171.94 feat to Point 36, N 9' 36' SO" E for 369.91 feet to Point 39, \ 9. 25' 03" 1' for 143.52 fact to Point 40, V 7' 57' 34" V for 161.71 feet to Pains 41, N 7' 51' 12" E for 367.92 fiat to Paint 42, N 1'431 ir' A for 112.90 feet to Point 43, R 34' 231 36" V for 77.!1 fact to Paint 44 And N 6P' 31' 23" R for 133.33 !eat m the southerly ri;ht- atway line of Goldin Gate Parkvay and the and of maid centerliaa, sold point lying 160.24 fact, as oeesurad along maid southerly right-of-way Una, L. ST of the northeasterly corner of 'at 27, block 281 se dhoun me "Plat o! Ooldeg Cate, Unit 6, ?art 2", as recorded in Plat awit 9 me pages 107 through 112. Prow the Above aentivned Point 21 rue F S' 011 OS" C for 126.26 feat ca the ?oLAc of Beginning of a drafadga aaaaxat lying 19 fast on oath alfa of the following deathbed cootarllno. From maid Point of Doginning run x 37' 06' R for 143.46 foot, N 25' 491 49" V 420.12 feat and f 67' 0O' V 10.00 (dot to the end of said cantarline And Che narthenaterly mod of the divis Lan Una hatwan Leta 6 and 9 in Block 280 me shown an the Aforesaid "Plat of Golden Gata, Volt 1, Part V. .IWSN3LIN ENNNEEfatNO. WC. IRF. 585 Pa 97 DUCKIFTE061 Dniease emaaeentm in .olden Cate, odd timed -4' Lwin ac the above centidead Point 40 ane run along the certar- Una of an easement lying 19 fast each midn of thefollowing de- scribed cantarline S 83' 09' 49" '. for 172.�rd feet to A point a! curve, thence run along the Are of a eurva to the loft havir.0 a radium of 135.99 fret, on are length of 176.43 face sad a central Angle of 66' 4a' 34" to a point of tangency; thence riuo 5 16' 24' 35" W for 118.85 fest to the easterly and of tha diviiien line batvean Lots 0 mod 16 in aleck 261 es shwa w the aforesaid "Plce of .olden Cat&, unit 1, Part 2". Frac tha above nanrioagd Point 33 ran N 6' 29' 02" E for 278.32 feet On the Point of Eeginning of a drainage eam smnt lying 15 feet on aitch aide of the falls irng described centerline. Free maid Point o: Ecgin.'ang run 6 12' 11' 19" E for 219.96 'mac to Point 45, N 72. 11' 13" E far 32.59 feet to Point 44, X 49' 16' 33" E for 121.05 fact to Paint 47. 9 33' 21' 53" E for 73.65 ca rdint 48, N 7' 37' 07" E for 49.05 to joint 49, X 7' 51' 59" V for 105.12 to Paint 50 o.d A �a:nt of curve; thttidm run along the are of a eurva to chit rCIht having a radluo of 109.70 fcet for an are length of 105.92 feet And a central engla of 55' 19' 12" to a Point of —r.Eency mad fdinc Slh thence rum N 4]' 23' 13" E for 120.52 fast to Po:n: 52, N 39' 26' 43' E for 169.10 feat to Point 53, K 29' 27' 25" E 245,02 feat ra Point 54, X 40' 36' 51" L for 49.78 to Paint 5$: 01eaca eentinue N 86'39' 59" E for 267.17 fait, K 62' 15, 59" E far 114.92 feet, .: 27' 09' 20" E for 220.95 fast, K 10' 46' SS" E for 149.66 fat► to a Paint of c%rv&r; thence run along the are of a tutee to the right having a radium of 212.65 feet for ad arc length of 303.77 fast having a central angla of 12' 23' IW' to a point of tonCency; rpnce cud S 86' 49' 53" E for 137.02. feat and A 00' S7' 39" W r 175.92 fact to the southerly right-of-way lint of 6n111eY Glee PATWAy and the and of maid cet.rarline, aaid'paiar lying WEST 31 face of the oorrhuut eaenar of said Tract 1, Golden Gare Unit 1, Part 1. .IOriNsom EN9tNCEf NCL INC. DESCRIPTIONS Grainaga EaasFatlto in Golden Cats, eantinued -5- 1'585 Ru 9% lagln at the above renclenad Point SS and run 'w 00' 12' 39" W for 59.13 feet ■Seng the eanterline of an elaa.:an: 171ag 10 fast each aide of said Cogcarline and anding at tha ■ovtherly and of the division '- ".c between Lots 11 and 12 in Block 2 As shown on the afareeaic Plat Of Colden Cate. Unit 1, Part2 a. login at the above asatim.d Paint 47 end run along chs canrer- line of R dralrtnge eusoant lying 15 feet each aide of the fel- laving deceriEad centerline, H 97" 16' 03" E for 66.91 feat ca Pain: 56; [hens run N 76' 39' 31" E for 151.56 feat, N 65' 24' 33" E for 250.69 flat, S 23' 00' 1 far 26.10 fast CO the end n1 acid tanterlina at the northerly end of the division line be - ween Lata a and 9 as chart on the aforesaid "Plat of Colden Gate, Unit a, Parc 2'. iraa the above mentioned Point 56 run S 76" 39' 31" 1: far 75.19 feet to the Point o1 beginning o1 the cenrarlioe of a drainage aueaat lying 20 flat lath gide of the Following dastribed centerline. It= raid Point o1 Scginning ran E 23' 00' E for 34.16 rest to the and of laid centerline lying at the northerly and of %he, division line between foots 4 ane. S as ahoun as c?.e aferatentioned Plat of Coldtn Cate, Unit ,:, Put 2. Docummay "' S ATS vF F� DRIO.q S < SURTAX= 1-$ ae"tN1Fgt iraMP TAi'1 FLOAI A • •.2 0 wit F � sa � ill•t71 � � �. 3 ��1 .y� g01%as we w. . tttn : ;3.1a;38J I I IRK]X'T IYI' ._RR.i:i•+ 111.1:1 t, F)O C r r h:L illt� ICDI:\'TNRC, A1,ule• [hi. 4L1i 41.1 •+I `1 't• t 11 111:11 IflM. IN t,.%C PRtim.KTim, 1;Y', a ll•.1141•r .-.o;Inr•tl'iun r. ,.till: andrr ti • I -m „1 the- Kra tr tit I htrJr6,. 1mvir,•• Itik vrinr•indl pl.n"• ni Itlr4tllt", in tier OILLItty "1 II -II .Ind tita t, .II I'I 111.141.1 .uul Ie. Bill 1 CN ia1T1; 1,011X 1") COUNTRY 1':,111, I\t', I'l,.rid.l ulwitill'aLl.n, rrl•ttlny, rmdrr tl, 1;" of thr• Ctatt of ]t..pRl•t, baring it. rriurifarl :.Llr•r "I M1,11ll'Kl; 1n Lin V.dolt • 0,1111-1. dile] "rats. ,11 t hwRla, and la, lullw autt•livizr•d t•1 tr.IIIKa.'t Ilu+Ittrlls In Itn• +tett• ill I I."•Ida. 1-irtir, ,11 tlso I,r•+t .art. .uvl ',1;111: IITII,IT IC" 1St- '% ­t n',.w rinx 411M. Vale.- t'.,I•.,I. I'lnr-ida iMlfl. d i—rpuratinn •, matin• „ d. 1• Cly ]e]4+ ,. I*. �t ,Ir , I1,.r'i41.1, Imvfl ` 1 tx .•1,111 :I ­ 1 .1 arl ..I 1>11�i11. , e',n,rt• Lr, .21141 stilt'. 9,1 1 ,...�.)..• .1141 r.u.lull5 au t, .• ,1 •.. 'r..•+ti u•I Ino i+••- in Of. - •E•' •. •I•.r [41.1, u.rrl •. ., ,.... .�.n�., ..; f\C5:1'TII: :I .II L. ti.I•I p.n•[io•. „' ]til ..r•.t par[. 111%i41w•al .••u it , +2t +I Vr', 1141 lll•Vl RJ:)ISr•, ifM) t• e].1 1R' I • : r It Land t•.1 r l - .I • ..d v .alrl \ .,I It . 11111141 n.Pr. t, 1 ' . r" ' . I .1 1 . r !1. I. 1-11"WJ•'t.:• it. 11,1, traiiE-1. trim ninoel -` .mtl ,,,]J tlu• tie] hl ll.11•[ ." ,r.•, , w: p.1rC, its t:urr.+•.anrc i •.J .t��••. Inr.•w r. t!• ••.1 J•. d••rt•ihr41 l.uit1 Ii ttt•Its. ]vinyl .me] 1. it: • if- tLo Cnuntr I..l I i• r' .)id +t,tl'r 1.1 I']nl'iel-I, Cn-wit: I I I 'I?11.11: TITLI, TIP Till; ITIJ.IIIh1CI: MV, I:STr1T1: 1 p.u•r•rl ••I land In l',.lI i• -r I•"11etr, I I.a•iOil , fill rr IMI' tII'll lai'ly d.•�rr+i 1..41 . 0 .11.,W% .11141 I., Im: .1 p.irt •.1 [hl• Plat •II Tr.lrt A Iden ;.1t 111,1t N. Part .n. rr•r.'t•tG•d In filar rin,rl. 1f jet 1•�r•+• III ..t Ilu• hililh• ltm"LI•1.n ,., 1'.,11it•r Cnunry. 11m-ldd, a,r,rp I.wlWell. .n•lt dosrrli,rsl .14 :fitlliw,: 1'•,r..arnt'i'tR at Lrll Y•.:'thwovt I'nt•1111y ill Tr u•L d, thunev rntimhit Knuth a di -tam... it Will, 47 Prot .11r !-, Lhe West I' wularY III -iald TI'.11'I A. 1'61.1)'x• mum In--- Cage Iif. ,11 '•III t„ .I Jill lilt. -141 o.,nrt brinK algin kiv­riUrd ila 1Lr PIP lilt ul 6r0rutiul:: thtyn'r mm North ­)" ,ll' 21" Lw -t, a di4lanrr ill 111.15 II•rt to if point: thenct' nm \'-.rill W O4' 01" 14i*t, a dit;Lnllrr ul MINI lot't to a fro Fnt: tlloncl• rl)l vurtli 117" n7• 112" tiort, thl•nar run Vwth tin Ili' Ili' I:aYt• a dtfitalLCe nl lr]II.IR loot to o Wnlnt: a (listanr•• III i`)6 54 I'rt•t to it 1)rint: thrncr• laut,Snuth If')" fill' Y.` Wost, Jt diyt.uicc ill 184,511 root I - .1 pnlnt: tl. !o. rill, +uutl• .11" 114' 4h" h—L, .t di%tunrx• ill 111•,4) Im-t rit .I onillt: thmer run Knuth l 011" W)" Sf1•'1L, I distranae oI 113.16 lrr•t tit ;1 Ilulnt: thenar run 5Wuth V 4S' ill" Wost, a diAtaner ill' 1R3,72 Irrt to the Point ill Dr•giniiing. j'fURatt r. tlY7r. r-,Pf ;1 X,11 IS 2 s1, P�I'jIj "Cl. I^ .jr9T1 76I , TIIATY 4.1ANINT .Lt .•.I, mo -[It I,tr dtiI it I ':•, . t' .. v in ,.•:dtlL. ',I l i •..tit 1;1 ltl l : -n, [•aoh aid, -11 I1•• ,-till',• I lor• till w+.+. . , u u•I rrul oviv [lour. l•tl+nd -w [I,I1tIwx: +eid line rn nrr,u•in•, ar rill, 9urtl,r.trt — i; --v rl1 if .ICt it 'If' Unit 1 0l rir+illIM 1.,rtr tiuiILIiviyerll. rrr.a•drd ill Pint Iln•,{, i ;.t 1'nlGr w nr tilt, HlhLit• Rl'r.1^14 til Collier County, flor[d:,, .Ind tluner rtual"m Uvr t I+R.1% lr,•t to he 1'=I,nr til Rr•4lnnlnra nrnl tl:• 16r•,•trr I iur of Ll.v onam,en[ I.t•r, L, drsrrlbed: thr[tre• vul, ,.41mth lie I12' 4+I" I:act I.Ir rt 'iititallee if lll;,",.YII rrrt to .I p„tnt; Raid lInilot hrioL rile Southerly Lrnrinutiuu til rill' rosl,ment hrr. it dt-CI'ibetl. rTILITS 1;A41_%fr.M' to] ra.rr.I'rt tnl••t[tility Iltiv.- 1•.r•,[ra In Tract A •,' r:.+ldra Glitr I'.,it p 11.,rt 1, atO.,.[•(I:n,, t•, t1" flat thrr—I'L r,•r•n•dr•J ill Plat 11••••k .It i'ar;r 111 ,.1 til. IYIilI i,• R.Y•,ordc .,I I:.,l, I• r {'nunt�', I'lorida, •'.,rrr• I+.n•tiruiarly dr4rriL,•LI ,rte l.,l[ows• trip ..I L,md v- '.•. t in wi[Itl• hr•in•• li It•r•i t[p,111p .n. ranch •[itl,n, I'•. r.[•l•I• 11nr tl..re•,•1, .nu[ +ur', ra�r- .nt C-744W)II.: it CL•+ '••[1t11ed•rY rrtLgtr•l' ..I Lnr 111, ]Hoch `;I ❑1 sajil Init. }. fart . .,I I:..I d.10 ...rt olnl iv 1,tj (ill - .,till [heave r7u,,.i7d R4tt l"' :1 !.t �: .,ingV v71d ..-�rrtt r, r.Crr i•n .t ell •'Ln•.• .. •a'. ,1 I,•nl to, u,.i,.t .. I .[+Illi[ [• r• ln:It i•••: , 1 itt ...t r;la,•- .,t lu•r,l.,t..rr ,s•..•r•i',J. r' . dr•,I . • ,.,, t., , rrr•t•[ i•. .1. . ...t •..r nI I,•,• to r, r[.r , rr.•1 �t..I-- I: drl'd d.rt,-tl ll..' 411 11.11 ..r .t.n....... l•,T� .till{ rrr•.rdrd u. nR H....{, •,iP, It :til! RI':I . . •aid rar•L;rr ,.r [I • ,r••S cart .,e.­I.•.d J.-N[•I •. ",•.d in l'.t,., I.e il• arlgvr •. r.•r,, oild ir4 I•,no.,l•.,l - ..I p. I.,. ,[,.'t['tl. al;r.lr+I Lv {tt -.. v, I..l- . it" day .tial .i ,I..•:, .. •iL[„n Attesa: u� • ' Srul•rtar, airnod. i••uIvd nud .:. I:v,•t•..1 in Hit- prrfii'ucr til u.: GW 1•RlIPLICTIL, t, I:f1L111:1 GAL WIIX A 1'I11'`TRY CL110, IVC, 47� Arisri•. �` n. G .dsti Scor art . c.• :. n - 94M'etf' Sealed and drlIveml • ih•2114 t•Q&CIice of us: STATE Or i Li1RIDAt 1 — 5S9 1119 I "':Me" I:I:RTl1Y, tlt:lt '141 tl.i.. RON din• nl fl.n' A V. l47ll, hrlurr m•' pt1'Fm1al1)• apur.•••,d Na,lu'I'[ [.. KI•intr.ad+ reasl .lunni 1•1 Rl vrt'... VLrr Prr.[d.•nl .Ind Yt•t•r.•Lnry nl ;Al'•I'J11'1.RT 11:� IV. and tiidn'-a A. 9nrr+l nul Oil tett Y. Slime (rn V;,•. Prrxillrl.t and dv.lr.tnnt S"rr;'u•,• ..1 •AtLGi:4 CATI: 1plld xvf1 L:PI'Xl"]tl Cld'N, llA:., r.•ty+. oath+ns nntl.•r Ll•. !.tt,•. ••I there %L,ttr .,I l hwitl,a• tel mt• L.• Ir rlrr pr[ -'t. -ns rd:.+ Who •st¢nrd till. I'nrt;;nllsV ilttitra[- ,n'ut a% •.1106 .•1 • iveras anti svrvral It ael•n,ncll'tlgvd tla• . r.q•I1t1,111 Lherrvrl r•• lie L it Irrl' .tc[ •Ir+•I tired 11% 9111211 ulf i.'rl" !.n• Lhr u•cry .11411 ..1wr.• -. tl+e•t•r[n Trnti'+nt d anr! Olar thea a! 1 irrd lLI•rrh. LI -1- nLri..l ..l .+ said r..t'p.,...t;•nl. .11W that Lhr •,.rd .n.Irtr- enrttL iLI,r .u•I mIII drrtl ..f •.:1.11 r.ru., rat 1''1t L,'lT NI -= .+v Hand .and "111r;.1I "..I1 ar )li•ri , f}4mty „1. a .t tte nJ l l• ,:j L, 11, .I.,t :nitl Ir I Ill a L.Jv v•. nl V-61 io Thin In••Irt. .I+L tr.., I'rty.,.r..i •. , We: N.dn•rl L. B. ,ul r•tnh hr U,I'n. V .Lt 6.1ti IIInt I I•V lu•d :{.• a f Gam•-•tl vJi11�C��TR�] =. ,� STATE 4F K+� tN,o., �• ''❑ tut I rfL rDotDo•Ctn_MREENYrIMAWAY���•••���F•••j{{ TAMP TAX' SUR MJ�: II � U 0. 5 S r "+ .l x uuL•l� ' � � Q "3 0 i ' • so.,..e.. 0.14140.` •'r• + rrorr n r 'K s K. .V{ Can RECT1vF.-CORRKCIIVK k4ARRANfY DF.F:IS 386= iff 622 rw 787 TIIIS IN DENT RE, m,iir this 10th dray of June. A.U. 1'175 between t;AC: PROPERTIES INC. a Florida corporation existing tinder thr laws •if :hr titrate of Florida. having ,lis principal place of Wilinton m I%c 0-ftly ,.f !tv!r and State of Flnrula and GOLIIEN GATE GOLF AND COUNTRY C'IJ'It, INC:., a Florida corporation existing under the Iowa of the State at Florida, having its principal place of business In the County of Collier and State of Florida, and lawfully aathornxed to transact. business in the Stats of Florida. parties of thr first part, and GAC IITILITIFS INC.. Past affirm Box 040, Cape Coral. Florida 33904, s corporation existing under :he lewd Of the State of 171+mant, hawng eta principal Pldee of bMutnees In the Cminty or i.re sort s wir or Florida. and law• fully euthnrieed to transact business to the State of Florida. party of the second pa rt. W:TNESSETrf: That the said •parhea of thr It rat part, for and in consideration of the sum of S1XTy TIME HUNDRED 156, 5001 DOLLARS to it In hand paid by the said party of the errand part, the rscaipl whereof is hereby ■eknowladgcd, has granted, bargained and sold in the said party of the second part, its ■uctoraerp and aulgn■ forever, the full. Eng doecrthad land altuaie, lying and being in the County of Celher and State of Florida, to -wit: FEE SIMPLE TITLE TO TIIE FOLLOWING REAL ESTATE A Parcel of land In Collier County, FJorlda, mora particularly described an follows and been= a part of the Fist of Tract A of Golden Gate :fall 0, Park 2 as recorded In Plat Dealt 9 sl Page 111 of Shit Public Records of Collier County, Florlda, more particularly described ar follows: L Commencing at the Northw.et ccrner of Tract A. thence running South a distance of 649.27 feet slang the West bnundery of paid Tract A; thence running East 336.31 loot to a point, paid point rr rte— being also described as the Point of Beginning; thence run North P+,.+ 090 54' 21" Past, a distance of 333. 15 feet to a point: thence run ow V � 'ts.: North 0"09' 03" East, a distance of 75.04 feel tea point- thence . rue North 230 431 43" East, a distant; of 104. Ig feet to o point! o '• �-ih thence run North 470 07' 42.' West, a distance of 196. 55 feet to a point; thence run South 090 441 56" Was 1, a distance of 164. 50 _ � rue r r feet to a point; thence South 500 09 46' West, a distance of of 14, 20 feet to a point; thence run South 110 04.1 09" Wept, a ' y dlslanes of 11 S. 36 feet to t point. thence run South 30 45' 3011 West, a dratanea of 103.92 (tat to the Point of Begenning. L P'TII.ITY EASEMENT 111 622 rw 788 An riternirnl for Wilily llnra in Irri in atdth, briny 19 Irri rvp,ally .,n cath rule of the center line lhrrvnl, more lurtuuhriy dest fitted al I1*11aw+r Said lint cartmencut( at the Nnrtheas, corner or Trot t it nr Pott l of Crider G.ile Subthvlaion, rccordci in P]at hook S at Pepe 61 of the Public Nv-rd. of IrAllier f nuniy, Flnnrla, and thence running Wcst 66.14 feet to the 1%onf of Beginning and the center tin& of the eamenient heroin dear -heli: thence run South 00 021 44" &at far a distance of 1O29.80 feat In a paint: said point boing the Southerly termination of the Mae- nwitl herein described. III ILITY EASEMENT An aasernend far utility lines located in Tract A of Golden Gtle Unit 11, Part 1, according to the Plot thereof. retarded in Plat find'I mal Page 1I I of the HPhlic l;ernrds of Cfillier Lnunty. Flo rids, more varta.ula rly ddar ribed a fellows! A strip of land 30 feel in width, being 15 foot equally on each ride of the tsntar line thereof, Red ■uen amaeniank cammerictny at the Southeast corner of Lot 14, Black 261 of maid Unit U. Part 2 of Golden Geta Subdivisl1w. and thence ninning South IWO 19' 21" Ectal along said aefetl 911t center line for a distance of lig. 51 feet to the point of F.yatbrly tertuinalion nr maid 10 fanl ease- ment hereto:arc dcerrihrA" This decd iR given 10 correct the description of ire Pimple title to eertnin real estate as shorn in a o-arrallty deed doted the 8Eh day of January 1973 and retarded to OR Bonk 510• Page 916-918, and in a corrective warranty deed dated the 6th day of hfay 1974 and retarded in OR Bavk 509, Page 760-762• IN wlTNFSS WHEREOF. the said parties of the first part have caused these presents to be signed in its name by its proper officers, and its corparata ecal to be affixed, ntlasted by its Secretary, the day and year above written. GAC PROPERT1&S,)NCia1j .Z i Attest : is .. / t...• /• • Ely— Secrets ry Vice YSecretaryVice Signed, Sealed and delivered `�F_"•'•, In the presence Of mast Attest• �` F• i` —� Asa ata Secretary Signed; Seeled and delivered to npres ence of un GOLDEN GATL OQL1 3I16OUNTRY CLUB, INC. ' y i P " STATIC OF FLOAIf1A 622 au 789 COON rY OF OA inr I HEREBY CERTIFY, this on thin ]Uth day o] tune, A U. lnTti, hefnra me persnnAlly ap,..rarad ]inhrri L. Wainimuh Anil .luan,l.t R ern,. vire Pram+dant and Secretary or GAC PROPERTIES INC An•I Sidney A. SnrM erd kl,ltnn M. Shapira Vice Preaidrnl and AAautant Secretary of GOLDEN (.A'1 E 001.1' AVI) COUNTRY CLVII. IN%... corporalinns ander the laa•, of the Stele of Fly-tdi, to me known to be the persane who signed the foreRa,sip instrument os nu,. ofucera and ii—m—lty —Itn—ledred thr reoa,ilnin tltrreaf In he Ike, r fee.- i. t and need as such nff.,ere f„r the tin -e .and purposes therein menllnnad and that they affixed thereto the official seal of said curp,arauoe, and Ih1t the said ,natremant is the act and dead of a?,d corparatian. WITNESS my hand and official seal at Miami in the County of Dada And State of Fiorida the day and yea. I►at aforesaid. N7[ar�y, lP4alsl i c Thla Inalruinetil wpl Pro e,red B•• Idttf't n4lr� `••i:41 p ) • Itr caitutst tanra• rratl ... t§+s •. aafpn fs” taALiut tsdittws tn•�tllttldtA . Samuel iL Mnaiger .•t5 Attorney At Law = . P. O. Box 523000 Miami, Florida 33152 DQCUMEh[rAR FLORt A'llFiIiiX= t � cL0.55 nnrn Wln TE or FLO RR DO UC MEN7A6rf .� 57 1 :F Lt i.or (stmt =" 00,•30,1 :l L iii5 a. ;o.. crr wn ,eaa w -OR; 2848 PG; 2969 QUIT CLAIM DEED BY TRUSTEES OF DISSOLVED CORPORATION THIS INDENTURE made this I0th day of December 1982, between FRANK J. CALLAHAN, =ffi=n4qtM NOAHM S. EDBLCUP and JUANITA RIVERA, of Dade County, Florida, being the Directors of Golden Gate Golf .& Country Club, Inc., a dissolved Florida corpora- tion, at the time of its diasolution and as such as Trustees of the property of such dissolved corporation for the benefit of the stockholders, hereinafter referred to as 'First Party", and DOMINIC D'AGOSTiNO, FRANK W AGOSTINO, MARION VOCISANO and ROBERT VOCISANO, a Florida General Partnership, hereinafter referred to as 'Second Party". WITNESSETH, that the said parties of the First Part for and in consideration of the sum of TEN DOLLARS ($10.00) and other good and valuable consideration to them in hand paid by the said Second Party, the receipt whereof is hereby acknowledged, have granted, bargained and sold to the said Second Party, their heirs and assigns forever, the following described land situated lying and being in the County of Collier, State of Florida, to wit. Tract A, GOLDEN GATE, Unit 0, Part 2, as recorded in Plat Book 9, pages 107-A through 112, Public Records of Collier County, Florida, LESS that certain parcel previously conveyed to Gulf Communicators, Inc., by warranty deed dated June le, 1973, and recorded at O.R. Book 538, pages 353-35$, Public Recorda of Collier County, Florida. TO HAVE AND HOLD the same together with all and Singular the appurtenances thereunto belonging or in anywise appertaining, and all the estate, right, title, interest and claim whatsoever of the said party of the First Part, -either in law or equity, to the only proper use, and benefit of the said Second Party forever. IN WITNESS WHEREOF, the said party of the Firat part has hereunto set their hende and &sale the day and year first above written. Signed, sealed and delivered in presence of; r r r ' RKANS. •AELCU ANI A VERA OR: 2848 PG: 2970 being the Directors of Golden Gate Golf i Country Club, Inc., a dissolved corporation at the Lima of its dissolution and as such as trustees of the property of Such dissolved corporation for the benefit of the stockholders. STATE OF FLORIDA COUNTY OF DADS I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the State aforesaid and in the County aforesaid to take acknowledgments, personally appeared PRANK J. CALLANAN, X)RUMOC191. MRM; NORMAN S. EDELCUP and JUANITA RIVERA, of Golden - Gate Golf 6 Country Club, Inc., to me known to be the persons described in and who executed the foregoing instrument and they acknowledged before me that they executed the same. WITNESS my hand and official seal in the County and State last aforesaid thim 20thday of December , 1982, M!' Commies ion fixpiree: No � �` � � h Ma I STATE OF FLORIDA OR: 2849 PG: 2971 tilt COUNTY OF A F F I D A V I T COMES NOW, JUANITA I. RIVERA, after being duly sworn, deposes and says: I. That she Use a director of Golden Gate Golf i Country Club, Inc., a Florida corporation at the time of its dissolution which was December 1, 1977. 2. That the following individuals were shown in the records of the Florida Secretary of State's office as directors of the corpor{►tiOn at the time it was dissolved: a. Frank J. Callahan b. David Aughes c. Norman S. Sdalcup d. Juanita Rivera 3. That the following individuals who executed the Quit - Claim Deed were, in fact, a majority of the directors existing at the time the corporation was dissolved: a. Frank J. Callahan b. Norman S. Edelcub c. JuanitaRivera 4. That David Hughes was deceased in December of 1976. S. Affiant further sayeth not. Dated: 20th day of December , 1982. J. Director Sworn to and aubscribed before me this 20th day of December - 1982 by Juanits I. Rivera Rotary Pubj1c My Commission Expires: " l/e1'r,6 }{fC OAS"" N.. RAMCO FORK 0 iNT -a:�,L /�,,r` p� *� %% 1983 11& 1LkW'0aw aI[sly D. FRANK D'AGDSTINO jtnf pa y. r. BolbertotePorlani e,�aiFloridaaganernlipa�lership, a/k/a s Golden Gate inn .a1,.rapw.jfka.idreuM 4100 Golden Gate Parkway cr Naples, Florida 33999 to WEtRjSS9thr TJ[d dw:nid Jim nnrly, fwo*d 1a m,pl'rollon of the am "16 10-00 U 1. ha.d p.td by Ike rd second pally. 161-igl rukmraf Is h"Ay a� doer hnr6y r.aJa, ra- 1and quil•clpin+,..M the said serand WY fo awr, n11;La rfC11l, rifle. lnlwor, r(.in .nd dd,..nd ..m ahtdn "a' /tnt FQI7 hu M end b ", relfsufna do: Lr l kr, ph" r narol .16"dtu.u. lye p .nd "C.,W rho C..Aly.l Collier Smm.j Florida >e+erle rr Block 1, GOLDEN GATE, Unit No. 1, as recorded in Plat Book 5, Pago 62 Public Records of collier county, Florida; and Tracts A and B, GOLDEN GATk, Unit No. 1, an recorded in Plat Book 5, Page 62, Public Records of Collier county, Plorida; and Tract A, GOLDEN GATE, Unit 9, Part 1, se recorded in Plat Book 5, Par tsy r 147-151, public Record,• of Collier County, Florida, and H ~ Tract A, GOT,= GATE, Unit 9r Part 2, ■e recorded in Plat Book 9, pas o 107-A through 112;P ablic ecsds-4l_Colliar County, Plorida; USE tf certain parcel P..I. y f C01mNnicetors, Inc, by WO deed dated dune 11, 7]yr Book 538, pages 353-355, rb Public ROCOrde of tmty, t ALM LE58 that oertai7 c parcel Previoaa ed to UAC Utili Tnc., by warranty deade dated Jamtary 1 , and May 9, 1974, reborded at OR Hook 530, pages 916-919, and a t 519, P e 76 tebpectively, Public Re- cords of Coll aror TOGero me ETHER wit a t n e •htantil and appurtenances belt Ing or in an i a 1 v 70 HAVE AND a 'v SUBJECT TO: I C a 1 t f, ' a a as a ntis_of record., ' let e Hing lewar bjact to exiatin r a d,in-favoz of Sarasota �� a al Bavings a • 5�o-aticn. ]p )We Wd 140 Aw rnprtlen mehsfi7. d1yuM L6 .vr••rl �v thenunta bslu,a;nQ w f* anywl.r .sal off (ha "I.10.�* i,i1'W1. bra, equity .ori e1.1m .6 1 - of lir sod ilei wy, err. 1,amrjU and LA -1 .j the s.ri ' 9ti I If► Ulm vhmf, 71. .,d , W A- ;..cr,M r+n dcy cij P� r;w .baa. urrltimc. Signed, s a (an d C[ d !A p,..r»er _. .»• .Fri D'Agoa no 6TA7i OF FLOV ILL . C]UWW DF C=rL'R 1 Rewr rsa71ry ow a. w, +•►, �. ac •• n_ &* •d" M O. Far d -mW mW I. AR dr..y -b-mW . nM..rl�Idra•.•rL rrr+r�r r�.d FRANK DIAGOBTMO 4, d *i Qa,u4 w hmtP •. kwkmm d he • , :.,.,� r"ae. he --Brad 11. . r•' "- - }ky1i q Lsl d final d M ,►r CwMy al Sr l.q at ler i.} .1 i It� A. 11 se �' Recarvad $—. �s-fil4tary c Doe mantory Sfamp lox Collier Ccunly,F.'mdc .-.,..�' 1Ai;Lam J wo an, lark eOI WT 191L1C STCTS DI' iC0r1101 0 9MMIZZ11:20 FAMINES An 79 1086 byK %6i�I,tctua.7rr�>apomfby. 4 egepaG lam uk36u Ipi. Oe9. AAw T+. ►nl..� vm wro°'.A bl 7jdaplr4 Flal ]74� r 1 I= M, on as I W nw NAMCO FORM a U6 Quit -661a 11rK &...w ,il. �vr x •! MAN NDNlSLLO D 13 C5 CD ;m1 1" pwry.l. Hobert Vociuwwl Mario Vociseno, Dominic D'Agoatino, and 9alvrtors Porlani, a Florida general partnership, a/k/a GO dOn Gat- Inn ,h. P. dfkr dw ,-,4200 Golden Get. parkway Kaplan, Florida 33999 ./r.ad pwixl Il�liwayrx�>•yr��,lrr �I✓�i. � i � �+�w [. r�.� .M..wr'i i�r �litnesstlh, Tkat Iia raid 1ka pnriy, 1.r r.d in eondder.1ton of lir rum of i 10. go Gal In Land pWd by ilia Edd rm d p.r1y. Mo mrefpl wh—j Is A -.&y .n4nwd,da.r, Jw kmAy ,.,.t,a, r.rn irmr and gedl.d.lnr mala lie said are.nd poix forever, all Ila rinlrt, alfa, inte.al. Balm ma dom-d ,.itch lir old fral party hm !R mrd 1. IAO j.pomfav dw-,d,ed lat. p1m a yorsel -f 1--d, dk lr., lxtaa ref Lo" b Iia County of Collier Sf.t..f Florida.f.001,Block 1, GOLDEN GATE, Unit Mo. 1, as recorded in FlaBook Sr page 62, public Records of Colier county, Florida; and Tracts A and B, GOLDEN GATE, [snit Me. 1, an recorded in plat Book 5, page 62, Public Reeorde of Collier County, Florida; and Tract A, GOLDEN CATS, Unit 9, part 1, as recorded in Plat Hook 5, paV4 147-151, public Records of Collier County, Florida; and Tract A, GOLDEN GATE, Unit 9r Fast 2, an recorded in plat Book 9, pag� 107-A through 112, Public R Collier county, r1orids; LWAI th certain parcel previous °� eommunicatore, Inc., by Warranty deed dated J 14, ded at OR Hock 539, pages 353-353, Public Roc a 011ier Ca i rida; AND ALSO LMS that Partain parcel pr conveyed to GA t i.ties, Inc., by warranty deeds datAd Janu 1973, and May 9, 19 , ar# recorded at OR Boot 530, pages 16 t OR Book 569r age 7ta0, respectively, Public Records f 11 coup , a. .TOGETHER With 11 a ten r eredi aments'.and.appurtenances belonging or a t slnd. TO HAVE AND T HO he ne n ever. SUSJr4T T0: ant a V la m e .r -ti i it n r i a eaa a ts_ p£ record; e t f rd; !� 45t'Z ning laws g `ei jest to existing �Ftg ge.4'1E var oY Saraaeta Federal 7�Savin--sr\a�I j-,oan Assaciation 70 Nut AIW iM1Y Ad .tmo Irw16e, vai of 41�dft'- lir .ppmlnrrrrn IMwwla ' b.lonaft a banx,utr. nd off Am nl.re, g, l , ,leach, Ila,, equtly ad da ,, a". wr.r .116 .old flat palx, . in ip,y, r u.r, b.nefn Rend hA..j of Lho -d ,nand F•rry for rr. ` (fir C ll I ]n ubmWDL[ilfl, Tho said f101 lu fvrf aia.a rate. S[prrcd, , V .n de it ed In p,era,.ts all arms 4x riealoe. CPUNTY OF COLLIER Am wl nal WOW Ir"a wnnrb Ike 1v red yaw 1 HALLIM CQTI►Y du me t1d. day. Vlne r, a. .mm ddr -"led u tk. L,.w .rrmld a.L b dr a,r.a 4--m to wk..d..rNidprrea, nrr+4 4am,d BAN MONTELLO r sr k...n m he t4 puma doa�ribw M marl .ha araa.d dw ImrL•VL kwrerd pad a.isee.Nd.d .•• U16m m. ,krf efee." sk same. ... 1azTYrdt rr kLW aad ankh l r.l I. ,ka Or.etr +e/ Law Lal r .I • ' Doclancntory Slump Tax Cegkr Ccuntyr Flarlda il0A1DA Willi J. RpOgon, krk r ptNll[ SUNT gT0.A else illffAiS p►7 ;9 'I •...,..,'-. b: . , t�!'t'L� �y Tu�evl'r 4L1$TK lam' ' Y1ul fah,aorwr pwreord jl � .. , Rrutearr go= TTA AAA"m Healm l,.lda 33M qWA 1I L o - e O co cm REPORT TO ADDRESS REQUIREMENTS OF CHAPTER 125.3401, FLORIDA STATUTES ACQUISITION OF THE FLORIDA GOVERNMENTAL UTILITY AUTHORITY – GOLDEN GATE UTILITY SYSTEM By COLLIER COUNTY WATER-SEWER DISTRICT, FLORIDA November 7, 2017 Prepared By Public Resources Management Group, Inc. Utility, Rate, Financial, and Management Consultants K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing -i- REPORT TO ADDRESS REQUIREMENTS OF CHAPTER 125.3401, FLORIDA STATUTES ACQUISITION OF THE FLORIDA GOVERNMENTAL UTILITY AUTHORITY – GOLDEN GATE UTILITY SYSTEM TABLE OF CONTENTS Section No. Title Page No. 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 Introduction and Background .......................................................................... 1-1  1.1 Introduction ....................................................................................... 1-1  1.2 Background of Golden Gate System ................................................. 1-1  1.2 Requirements of Chapter 125.3401, Florida Statutes ....................... 1-3  Income and Expense Statements ..................................................................... 2-1  Balance Sheet ................................................................................................... 3-1  Statement of Existing Rate Base ...................................................................... 4-1  Physical Condition of the Utility Facilities ..................................................... 5-1  Reasonableness of Purchase Price and Terms ................................................. 6-1  Impacts of Purchase ......................................................................................... 7-1  Additional Investment Required ...................................................................... 8-1  Alternatives to the Purchase ............................................................................ 9-1  Statement of Quality Service .......................................................................... 10-1  Statement of Public Interest ............................................................................ 11-1 Appendix A: Executive Summary of Technical Feasibility Report K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing -ii- REPORT TO ADDRESS REQUIREMENTS OF CHAPTER 125.3401, FLORIDA STATUTES ACQUISITION OF THE FLORIDA GOVERNMENTAL UTILITY AUTHORITY – GOLDEN GATE UTILITY SYSTEM LIST OF TABLES Table No. Description 2-1 Available Income and Expense Statement for Golden Gate System – Statement of Revenues, Expenses, and Changes in Net Position per Fiscal Year 2016 Comprehensive Annual Financial Report for FGUA 3-1 Available Balance Sheet for Golden Gate System – Statement of Net Position per Fiscal Year 2016 Comprehensive Annual Financial Report for FGUA 6-1 Development of Time-Adjusted Acquistion Prices 6-2 Development of Implied Purchase Price Based on Time-Adjusted Comparable Sales 7-1 Bill Comparison – Fiscal Year 2017 FGUA Golden Gate System Rates vs. CCWSD Rates SECTION 1 INTRODUCTION AND BACKGROUND K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 1-1 SECTION 1 INTRODUCTION AND BACKGROUND 1.1 INTRODUCTION At the June 27, 2017 meeting of the Board of County Commissioners (the "BOCC") of Collier County (the "County"), the BOCC authorized the staff of the Collier County Water-Sewer District (the "District" or the "CCWSD") to initiate the final due diligence process for the District's acquisition of the Golden Gate water and wastewater utility system (the "Golden Gate System") currently owned and operated by the Florida Governmental Utility Authority ("FGUA"). One of the steps in the process is to hold a public hearing, in accordance with Florida Statutes, to determine if the acquisition is in the public interest. 1.2 BACKGROUND OF GOLDEN GATE SYSTEM General FGUA currently owns and operates the Golden Gate System, which is solely located within unincorporated County in an area west of the City of Naples. The service area of the Golden Gate System occupies approximately four square miles and is comprised primarily of single- family and multi-family residential, light commercial, and undeveloped properties. The majority of the developed properties are single-family homes while the limited commercial development consists of support facilities to the surrounding residents. The Golden Gate System provides service to approximately 3,681 water accounts and 2,303 wastewater accounts. A portion of the service area remains undeveloped (vacant properties) or unserved (private onsite potable water wells and wastewater disposal systems). The Golden Gate water system includes nine raw water supply wells, one water treatment plant incorporating both lime softening and reverse osmosis ("RO") water treatment processes with a total plant capacity of 2.099 million gallons per day ("MGD") expressed on a maximum daily basis, two water storage tanks, nearly 45 miles of water transmission and distribution lines ranging in size from 3/4-inch to 12-inches in diameter, and other appurtenances such as service lines, hydrants, and meters to deliver potable water to the retail water customers served by the FGUA (the "Golden Gate Water System"). The wastewater system includes one wastewater treatment plant with a capacity of 1.80 MGD expressed on a maximum three-contiguous month basis, over 21 miles of gravity sewer lines, 28 lift stations, more than 16 miles of force mains, and other appurtenances such as manholes and sewer laterals (the "Golden Gate Wastewater System"). The rates for the Golden Gate System are currently adopted by the FGUA Board of Directors (the "FGUA Board"). Under the "Interlocal Agreement Relating to the Acquisition of the Golden Gate System" between the FGUA and the CCWSD dated March 1, 1999, the County has the power to review and/or approve rates, fees, and charges relating to the Golden Gate System, but does not have the authority to deny any rates, fees, and charges established by the FGUA Board K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 1-2 to comply with financial covenants contained in the Trust Indenture[1] that authorized the issuance of the existing bonds for the Golden Gate System. The County's Operation and Regulatory Management Division currently collects regulatory fees equal to two-percent (2%) of gross utility revenues from the Golden Gate System. Since the FGUA is a public utility and the FGUA Board supports the acquisition of the Golden Gate System by the County, the ownership transfer is viewed as a cooperative and beneficial venture for both entities as well as residents served by the utility. Accordingly, the County has initiated the acquisition process of the Golden Gate System and has prepared this report in support of such process. Acquisition of the Golden Gate System This transaction would allow for the Golden Gate System to be integrated with the District's existing regional water and wastewater system (the "District System") and would allow the Golden Gate System to be regulated by and to be under the management oversight of the BOCC as part of the overall District System. The transaction is anticipated to provide the following benefits assuming the consolidation of the Golden Gate System into the District System: 1. The County anticipates charging the current District rates to the Golden Gate System customers, which will result in a reduction in the monthly bills for utility service to such customers. The existing Golden Gate System monthly user rates are currently higher than those of the CCWSD. If the County were to acquire the Golden Gate System and charge the CCWSD rates to the Golden Gate System customers, the customers currently served by the Golden Gate System could recognize overall savings of about 25% on their monthly water and wastewater bills (based on a comparison of Fiscal Year 2017 rates) – assuming no change in monthly usage. 2. The recognition of operational synergies and cost savings anticipated to be experienced through the elimination of duplicative costs currently existing with the operation of the individual systems, which, in part, would support the anticipated reduction in Golden Gate System rates for the long-term benefit of the Golden Gate System customers. 3. Any future financing required to meet increasing regulations and capital improvements within the Golden Gate System service area could possibly be secured at lower interest rates given the CCWSD's strong (AAA) credit rating providing for the long-term benefit of the Golden Gate customers. 4. The transaction would allow for the continuity of service (going concern) on a regional basis. Although there would be an immediate reduction in several financial metrics of the CCWSD, the acquisition is not anticipated to have a significant impact on the existing customers currently [1] Represents Indenture of Trust between the Authority and the Trustee, dated as of April 1, 1999, as amended and supplemented from time to time, which authorized the issuance of certain utility revenue bonds by the FGUA for the Golden Gate System to finance the initial acquisition of the System and additional capital improvements (the "Trust Indenture"). K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 1-3 being served by the District and is not expected to result in a reduction to the credit rating of the CCWSD from a financial standpoint. The transaction should not compromise the ability of the County System net revenues to meet the rate covenants as delineated in Resolution No. CWS-85-5 adopted on July 30, 1985 as amended, restated, and supplemented from time to time (the "Bond Resolution") which authorized the issuance of the outstanding utility revenue bonds for the District System. 1.2 REQUIREMENTS OF CHAPTER 125.3401, FLORIDA STATUTES Any potential utility transaction that results in the transfer of utility ownership from one entity to another is governed by Section 125.3401 of the Florida Statutes that states: 125.3401 Purchase, sale, or privatization of water, sewer, or wastewater reuse utility by county. No county may purchase or sell a water, sewer, or wastewater reuse utility that provides service to the public for compensation, or enter into a wastewater facility privatization contract for a wastewater facility, until the governing body of the county has held a public hearing on the purchase, sale, or wastewater facility privatization contract and made a determination that the purchase, sale, or wastewater facility privatization contract is in the public interest. In determining if the purchase, sale, or wastewater facility privatization contract is in the public interest, the county shall consider, at a minimum, the following: 1. The most recent available income and expense statement for the utility. 2. The most recent available balance sheet for the utility, listing assets and liabilities and clearly showing the amount of contributions-in-aid-of-construction and the accumulated depreciation thereon. 3. A statement of the existing rate base of the utility for regulatory purposes. 4. The physical condition of the utility facilities being purchased, sold, or subject to a wastewater facility privatization contract. 5. The reasonableness of the purchase, sales, or wastewater facility privatization contract price and terms. 6. The impacts of the purchase, sale, or wastewater facility privatization contract on utility customers, both positive and negative. 7. a. Any additional investment required and the ability and willingness of the purchaser, or the private firm under a wastewater facility privatization contract, to make that investment, whether the purchaser is the county or the entity purchasing the utility from the County. b. In the case of a wastewater facility privatization contract, the terms and conditions on which the private firm will provide capital investment and financing or a combination thereof for contemplated capital replacements, additions, expansions, and repairs. The county shall give significant weight to these criteria. K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 1-4 8. The alternatives to the purchase, sale, or wastewater facility privatization contract, and the potential impact on utility customers if the purchase, sale, or wastewater facility privatization contract is not made. 9. a. The ability of the purchaser or the private firm under a wastewater facility privatization contract to provide and maintain high-quality and cost-effective utility service, whether the purchaser is the county or the entity purchasing the utility from the County. b. In the case of a wastewater facility privatization contract, the county shall give significant weight to the technical expertise and experience of the private firm in carrying out the obligations specified in the wastewater facility privatization contract. 10. All moneys paid by a private firm to a county pursuant to a wastewater facility privatization contract shall be used for the purpose of reducing or offsetting property taxes, wastewater service rates, or debt reduction or making infrastructure improvements or capital asset expenditures or other public purpose; provided, however, nothing herein shall preclude the county from using all or part of the moneys for the purpose of the county's qualification for relief from the repayment of federal grant awards associated with the wastewater system as may be required by federal law or regulation. The county shall prepare a statement showing that the purchase, sale or wastewater facility privatization contract is in the public interest, including a summary of the purchaser's experience in water, sewer and wastewater reuse utility operation and a showing of the financial ability to provide the service, whether the purchaser is the county or the entity purchasing the utility from the county. The remainder of this document provides a summary of the above considerations. (Remainder of page intentionally left blank) SECTION 2 INCOME AND EXPENSE STATEMENTS K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 2-1 SECTION 2 INCOME AND EXPENSE STATEMENTS 125.3401(1) The most recent available income and expense statement for the Utility. The most recent income and expense statement for the Golden Gate System is contained in the FGUA's Comprehensive Annual Financial Report for the Fiscal Year ending September 30, 2016 (the most recently completed and audited fiscal year for the Golden Gate System) and is contained at the end of this section as Table 2-1: Statement of Revenues, Expenses, and Changes in Net Position. The most recent historical operating results were considered by the County in its evaluation of the Golden Gate System. As can be seen in Table 2-1, the current revenues of the Golden Gate System, which are based on the existing Golden Gate System rates, are sufficient to i) fund the reported or identified operating expenses of such system; and ii) produce Net Revenues that provide for a strong debt coverage ratio and provide funds for additional capital reinvestment. (Remainder of page intentionally left blank) TABLE 2-1 FLORIDA GOVERNMENTAL UTILITY AUTHORITY STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2016 Golden Gate Utility System Operating Revenues: Water and Wastewater Revenues $7,683,446 Other Operating Revenues 247,559 Total Operating Revenues $7,931,005 Operating Expenses: Operating and Management Services $2,575,174 Other Operating Expenses 420,278 Depreciation and Amortization 2,007,727 Total Operating Expenses $5,003,179 Operating Income $2,927,826 Non-Operating Revenues (Expenses): Investment Income $15,131 Miscellaneous Income 6,260 Build America Bond Interest Subsidies - Operating Grants - Interest Expense (1,402,480) Debt Issuance Costs (23,410) Total Non-Operating Revenues (Expenses) ($1,404,499) Income (Loss) before Capital Contributions $1,523,327 Capital Contributions: Capital Grants $- Recoverable Portion of System Purchase Price - Impact Fees and Developer Contributions 154,468 Total Capital Contributions $154,468 Increase (Decrease) in Net Position $1,677,795 Net Position, Beginning of Year $1,398,144 Net Position, End of Year $3,075,939 Supplemental Information: 1. Net Revenues (without Impact Fees) $4,956,944 Net Revenue Margin 62.3% 2. Annual Debt Service – Senior Debt $2,523,763 Debt Service Coverage – Senior Debt 1.96 Annual Debt Service – All Debt $2,760,240 Debt Service Coverage – All Debt 1.80 __________ The accompanying notes to financial statements included in the FGUA Comprehensive Annual Financial Report are an integral part of this statement. SECTION 3 BALANCE SHEET K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 3-1 SECTION 3 BALANCE SHEET 125.3401(2) The most recent available balance sheet for the utility, listing assets and liabilities and clearly showing the amount of contributions-in-aid-of-construction and accumulated depreciation thereon. The most recent balance sheet for the Golden Gate System is contained in the FGUA's Comprehensive Annual Financial Report for the Fiscal Year ending September 30, 2016 (the most recently completed and audited fiscal year for the Golden Gate System) and is contained at the end of this section as Table 3-1: Statement of Net Position. The most recent historical operating results were considered by the County in its evaluation of the System. As can be seen in Table 3-1, the original gross utility plant investment based on the original cost of when such plant was placed into service or incurred as part of the construction of asset additions was reported by the FGUA to be $47,602,118 for the Golden Gate System (includes $46,716,195 in utility plant plus utility land or property of $500,040 and $385,883 in construction in progress for projects that were currently underway during the Fiscal Year 2016). The net plant in service (total gross utility plant less accumulated depreciation of $22,558,111) as reported by the FGUA for the Fiscal Year 2016 was $25,044,007. It should be noted that the estimated net replacement cost of the utility plant-in-service (predicated on today's construction cost values) is expected to be higher than the original installed costs of such facilities. In order to finance the original acquisition of the Golden Gate System in 1999 by the FGUA and to construct additional improvements, replacements, and betterments to the Golden Gate System, the FGUA has issued senior and subordinate lien debt. The senior lien debt represents indebtedness issued pursuant to the Trust Indenture (reference Section 1) which has a first lien pledge on the Net Revenues (Gross Revenues less the payment of Operating Expenses) and Connection (Impact) Fees of the Golden Gate System and the subordinate lien debt consists of low interest Drinking Water and Clean Water State Revolving Fund loans administered through the Florida Department of Environmental Protection and a Loan Agreement with SunTrust Equipment Finance & Leasing Corp. As reported in the Fiscal Year 2016 Comprehensive Annual Financial Report for the FGUA, the total bonds and notes payable as of September 30, 2016 was $39,871,983 and as of September 1, 2017 the total bonds and notes payable is estimated to be $38,658,753 (reference Section 6 for a summary of the outstanding debt). Upon acquisition of the Golden Gate System by the County, and in accordance with the "Interlocal Agreement Relating to the Acquisition of the Golden Gate System" between the FGUA and the CCWSD dated March 1, 1999, the Golden Gate System's outstanding debt and any additional obligations of the FGUA as it relates to the Golden Gate System will either be repaid as part of the terms of the acquisition or may be assumed by the County (no longer a liability of the FGUA) and become a debt of the District System. (Remainder of page intentionally left blank) TABLE 3-1 FLORIDA GOVERNMENTAL UTILITY AUTHORITY STATEMENT OF NET POSITION SEPTEMBER 30, 2016 Golden Gate Utility System Assets: Current Assets Cash and Cash Equivalents $6,797,569 Restricted Assets: Cash and Cash Equivalents 1,838,640 Bonds Receivable - Interest Receivable - Accounts Receivable, Net 1,166,278 Due from Other Governments - Prepaid Items 224,819 Total Current Assets $10,027,306 Non-Current Assets Restricted Assets: Cash and Cash Equivalents $4,519,136 Investments - Bonds Receivable - Special Assessment Receivable - Intangible Right-of-Use Agreement - Land 500,040 Utility Plant 46,716,195 Construction-in-Process 385,883 Accumulated Depreciation (22,558,111) Excess of Cost Over Fair Value of Acquired Assets, Net 5,654,054 Total Non-Current Assets $35,217,197 Total Assets $45,244,503 Deferred Outflows of Resources: Deferred Loss on Bond Refunding $362,407 Liabilities: Current Liabilities Accounts Payable $443,130 Customer Deposits 590,373 Liabilities Payable from Current Restricted Assets: Accounts Payable 236,760 Interest Payable 388,650 Current Portion of Long-Term Debt 1,213,230 Total Current Liabilities $2,872,143 Non-Current Liabilities Non-Current Portion of Long-Term Debt $39,658,828 Total Liabilities $42,530,971 __________ Table continued on following page. TABLE 3-1 (cont'd.) FLORIDA GOVERNMENTAL UTILITY AUTHORITY STATEMENT OF NET POSITION SEPTEMBER 30, 2016 Golden Gate Utility System Net Position: Net Investment in Capital Assets ($7,311,519) Restricted for: Capital Projects 2,285,134 Debt Service 947,161 Unrestricted 7,155,163 Total Net Position $3,075,939 __________ The accompanying notes to financial statements included in the FGUA Comprehensive Annual Financial Report are an integral part of this statement. SECTION 4 STATEMENT OF EXISTING RATE BASE K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 4-1 SECTION 4 STATEMENT OF EXISTING RATE BASE 125.3401(3) A statement of the existing rate base of the utility for regulatory purposes. Generally speaking, the rate base of a utility company represents the depreciated cost to the utility company of the plant and facilities financed by the owners of the utility, which is used to provide utility service to the public. Specifically, the rate base of a utility includes gross plant in service, less accumulated depreciation and net contributed capital and/or plant, an allowance for working capital, materials and supplies inventory, and certain other financial considerations. The concept of rate base essentially deals with the establishment of rates for a privately-owned utility. Since the FGUA is a publically-owned, not-for-profit entity, rate base calculations for the Golden Gate System are not readily applicable. However, since the concept of rate base links to utility plant-in-service, reference is made to Section 3, which provides a discussion of the Golden Gate System net utility plant-in-service. (Remainder of page intentionally left blank) SECTION 5 PHYSICAL CONDITION OF THE UTILITY FACILITIES K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 5-1 SECTION 5 PHYSICAL CONDITION OF THE UTILITY FACILITIES 125.3401(4) The physical condition of the utility facilities being purchased or sold. The County retained an engineering firm, Stantec Consulting Services, Inc. ("Stantec"), to evaluate the technical feasibility of the County's acquisition of the FGUA Golden Gate System and identify / evaluate opportunities to: i) address safe and reliable drinking water and wastewater service delivery; ii) provide water service to residents at best value rates; iii) make a long-term investment improving viability in the Golden Gate System; and iv) provide a long- term strategy to address environmental impacts. Based on their review of available information (e.g., available reports, permits, operational data) and on-site inspections of the water and wastewater treatment facilities, findings and conclusions are presented in the "Technical Feasibility Study for Acquisition of FGUA Water and Wastewater Assets in Golden Gate" (the "Technical Feasibility Study") report dated June 13, 2017. A copy of the executive summary for the Technical Feasibility Study is included in Appendix A of this report. At the request of the County, AECOM Technical Services, Inc. ("AECOM") as the consulting engineer for the District's master plan is currently performing due diligence activities to evaluate and document the physical condition of the FGUA treatment facilities and the capacity of the facilities to provide safe and reliable potable water and wastewater service to meet existing and future customer needs. As a part of this effort, AECOM reviewed existing engineering and operational reports to gain an understanding of the condition and regulatory compliance of the potable water and wastewater facilities. In addition, interviews with FGUA and CCWSD operational staff and due diligence site inspections of the FGUA Golden Gate Utility System potable water and wastewater treatment facilities were completed. A brief summary of the findings from the due diligence site inspections is provided below. AECOM is in general agreement with the conclusions and findings presented in the "Technical Feasibility Study for Acquisition of FGUA Water and Wastewater Assets in Golden Gate" report, which are summarized as follows: 1. The existing wastewater treatment plant is in good condition and limited short-term improvements are needed to maintain wastewater service to existing customers. Improvements were made recently to the following components of the wastewater treatment plant: a. In June 2016, a flow metering device designed to accurately measure the flow from the effluent pump station to the percolation ponds was installed as directed by the Florida Department of Environmental Protection ("FDEP"). b. In June 2017, repairs (cleaning and coating) to address corrosion at the facility (including digester steel tanks in package plant 1) were completed to be in compliance with FDEP regulations. K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 5-2 c. In August 2017, two (2) new positive displacement blowers and associated piping were installed to service the aeration units. d. In September 2017, deep injection well system improvements including a 250 kilowatt generator and deep injection well pad were installed. 2. The existing wastewater collection system is in good condition. Pump station rehabilitations are recommended for long term use to meet the Collier County Water-Sewer District standards. Future expansion of the wastewater collection system to areas presently served by private onsite wastewater treatment systems is recommended to be evaluated. 3. The existing lime softening water treatment facility is in poor condition and further evaluation of the structural integrity of the existing tankage is required, should it be retained in service. The existing reverse osmosis treatment facility is in generally good condition. However, raw water improvements are needed to increase the efficiency of the membrane filters. The source water for the plant has elevated concentrations of dissolved iron and organics causing reverse osmosis ("RO") membrane filter fouling issues. Poor water quality leads to increased maintenance and inefficient operation. Therefore, the raw water wells are currently being refurbished to address issues related to dissolved iron and organics. 4. The existing water distribution system is in need of upgrades to address areas where frequent water main breaks are occurring, which are considered to be a result of improper construction methods at the time original development. This will require additional capital investment to improve the condition of the water distribution system. A meter replacement program has been completed recently and Automated Metering Infrastructure ("AMI") installation is currently underway. The County's preliminary plan based on the findings discussed above is to decommission the water treatment plant facilities and interconnect the Golden Gate potable water system with the CCWSD potable water system shortly after acquisition and to remove both the reverse osmosis and lime softening plants from service, with a goal of providing safe drinking water and adequate fire protection (fire hydrants) throughout the service area. Additionally, the County plans to continue to perform ongoing renewals and replacements (capital re-investment) on the water distribution system in a systematic manner to improve the overall long-term service capability. The County’s plan based on the findings discussed above is to continue the operation of the Golden Gate wastewater treatment and collection systems in the near-term. SECTION 6 REASONABLENESS OF PURCHASE PRICE AND TERMS K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 6-1 SECTION 6 REASONABLENESS OF PURCHASE PRICE AND TERMS 125.3401(5) The reasonableness of purchase or sales price and terms. Based on the review of the utility assets and utility service area (customers and revenues) which would convey to the District from the FGUA as a result of the transaction, and the proposed acquisition payment terms as previously established by agreement between the District and the FGUA, the County is of the general opinion of the following: 1. In accordance with the "Interlocal Agreement Relating to the Acquisition of the Golden Gate System" between the FGUA and the CCWSD dated March 1, 1999 (the "Acquisition Agreement"), the CCWSD may acquire the Golden Gate System for a purchase price equal to the amount required to repay the Golden Gate System's outstanding bonds and any additional obligations of the FGUA. The CCWSD must also pay a pro-rata share of all reasonable and verifiable expenses associated with the transfer of the Golden Gate System by the FGUA to the CCWSD. As of October 1, 2017, the outstanding aggregate principal amount of debt for the Golden Gate System is anticipated to total $38,658,753, consisting of: ● Utility Refunding Revenue Bonds, Series 2010 Bonds, outstanding principal amount of $6,315,000; ● Utility Refunding Revenue Bonds, Series 2012 Bonds, outstanding principal amount of $16,040,000; ● Utility Refunding Revenue Bonds, Series 2015 Bonds, outstanding principal amount of $12,605,000; ● Clean Water State Revolving Fund Loan – Loan Agreement CS12090902P, outstanding principal amount of $656,137; ● Drinking Water State Revolving Fund Loan – Loan Agreement DW1127010, outstanding principal amount of $777,516; and ● SunTrust Equipment Finance & Leasing Corp. loan pursuant to a Guaranteed Energy, Water and Wastewater Performance Savings Contract with Siemens, outstanding principal amount of $2,265,100. Upon acquisition, the outstanding aggregate principal amount of bonds on the day of the Golden Gate System transfer will be determined and may be slightly different from the amount indicated above. 2. All cash balances remaining after the payment of any liabilities (not associated with the outstanding utility debt shown above) will be transferred to the County. Based on financial K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 6-2 information provided by the FGUA and in support of the financial statements reported in the Fiscal Year 2106 FGUA Comprehensive Annual Financial Report, the total amount of cash and cash equivalents was $13,155,345 (reference Table 3-1 in Section 3) of which the estimated amount of unrestricted funds (funds available for any system purpose, not restricted to payment of debt service, specific capital projects, or customer deposits) was $6,205,853. Additionally, it is estimated that there are $2,285,135 in net capital-related funds (the Renewal and Replacement Fund and the Water and Wastewater Connection Fee Funds) that may be available for the financing of future capital projects. There is a debt service reserve established for the Utility Refunding Revenue Bonds, Series 2010 Bonds in the amount of $631,782, which is anticipated to be available to be applied towards the financing of the cost of the acquisition by the District. Finally, as of September 30, 2016, there were unspent bond proceeds, which would be available to be applied towards the repayment of the outstanding Golden Gate System the financing of the cost of the acquisition by the District or that may be applied to the financing of capital projects in the amount of $335,015. The net immediate financial cost associated with the acquisition to the County is estimated at $29,500,968 as shown below: Amount Total Estimated Bonds Outstanding $38,658,753 Plus: Allowance for Transition Costs 300,000 Less: Estimated Fund Deposit Transfers: Unrestricted Reserves / Rate Stabilization Fund ($6,205,853) Renewal & Replacement / Connection Fee Funds (2,285,135) Series 2010 Bonds – Debt Service Reserve Fund (631,782) Series 2010 Bonds – Construction Fund (335,015) Net Amount of Transaction $29,500,968 Net Utility Plant Investment (9/30/2016) (Section 3) $25,044,007 As can be seen above, the net amount of the transaction approximates the net utility plant in service (original installed cost), a fact which promotes the reasonableness of the transaction. In order to evaluate the reasonableness of the purchase price, a comparison of the sale price per net utility plant investment for this transaction with a survey of 42 other transactions for which information was readily available to PRMG was performed and is included in Tables 6-1 and 6-2 at the end of this section. The purchase price was considered comparable to the average price paid per net utility plant investment for the transactions surveyed as shown below. (Remainder of page intentionally left blank) K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 6-3 Amount Total Estimated Bonds Outstanding $38,658,753 Net Amount of Transaction $29,500,968 Comparable Sales Analysis: Net Amount of Transaction $29,500,968 Average Price to Net Investment Ratio of Surveyed Utilities [*] 136.10% Implied Price Based on Net Investment [*] $40,151,405 ________ [*] Amount derived from the average Price to Net Investment Ratio based on a survey of 42 other transactions as shown in Table 6-2 at the end of this section. Since the purchase price is specified in the Acquisition Agreement between two publicly-owned, not-for-profit entities and essentially represents the assumption of Golden Gate System debt liability by the County (essentially is for assets in service) which, when recognizing the available funds that would be transferred to the County, approaches the reported net utility plant investment of the Golden Gate System, the County considers the purchase price to be reasonable. (Remainder of page intentionally left blank) Page 1 of 6Table 6-1Collier County Water-Sewer DistrictDevelopment of Time-Adjusted Acquisition PricesTime AdjustedLineYear Acquisition Adjustment PurchaseNo. Name of Utility (Seller) Name of Purchaser Purchased Price Factor [1] Price1 Clay Utilities Co., d/b/a South Broward Utility, Inc. City of Sunrise 1997 $12,300,000 16.42% $14,319,2502 Ortega Utility Company JEA (Duval County) 1998 7,180,000 15.76% 8,311,568 3 AquaSource Utilities, Inc. (Rotonda System) Charlotte County 1998 20,300,000 15.76% 23,499,280 4 IBSCO, Inc. Martin County 1998 695,000 [2] 15.76% 804,532 5 Gulf Utility Company Gulf Environmental Services Inc. 1998 43,000,000 15.76% 49,776,800 6 Florida Cities Water Company - Poinciana Utilities, Inc. Florida Governmental Utility Authority 1999 25,216,737 15.19% 29,048,000 7 Florida Cities Water Company - Sarasota System Florida Governmental Utility Authority 1999 12,493,568 15.19% 14,391,757 8 Julington Creek Plantation (JCP) Utilities JEA 1999 18,856,162 15.19% 21,721,041 9 Fisherman's Cove Utilities Martin County 1999 1,000,000 15.19% 1,151,933 10 Spruce Creek South Utilities, Inc. Florida Water Services, Inc. 2000 8,500,480 [3] 14.27% 9,713,215 11 Pinelake Village Martin County 2000 160,000 14.27% 182,827 12 Regency Utilities Inc. JEA 2001 7,718,000 14.79% 8,859,492 13 Decca Utilities Marion County 2001 11,915,000 [4] 14.79% 13,677,229 14 Florida Water Services, Inc. - Fox Run, Leliani Heights, and Fisherman's Haven (bundled purchase)Martin County 2003 2,350,000 11.93% 2,630,277 15 Florida Water Services, Inc. - Beacon Hills, Woodmere, Palm Valley, Remington Forest (bundled purchase)JEA (Duval County) 2003 25,000,000 11.93% 27,981,667 16 Florida Water Services - Marco Island and Marco Shores Systems (bundled purchase)City of Marco Island 2003 85,313,143 [5] 11.93% 95,488,157 17 Florida Water Services Corporation - Citrus Florida Governmental Utility Authority 2003 16,548,337 11.93% 18,522,002 18 Florida Water Services Corporation - Lehigh Florida Governmental Utility Authority 2003 34,596,839 [6] 11.93% 38,723,088 Report to Address Requirements of Chapter 125.3401, Florida Statutes9/18/2017; 1:58 PM Page 2 of 6Table 6-1Collier County Water-Sewer DistrictDevelopment of Time-Adjusted Acquisition PricesTime AdjustedLineYear Acquisition Adjustment PurchaseNo. Name of Utility (Seller) Name of Purchaser Purchased Price Factor [1] PriceReport to Address Requirements of Chapter 125.3401, Florida Statutes19 Florida Water Services Corporation -Nassau Nassau County 2003 17,200,000 11.93% 19,251,387 20 Florida Water Services Corporation -Groveland City of Groveland 2003 3,000,000 11.93% 3,357,800 21 Florida Water Services Corporation -Toho Tohopekaliga Water Authority 2003 38,070,835 11.93% 42,611,417 22 Florida Water Services Corporation Hillsborough County 2003 14,600,000 11.93% 16,341,293 23 Florida Water Services Corporation -Marion Marion County 2003 22,350,000 11.93% 25,015,610 24 East Pasco Utilities Pasco County 2003 2,850,000 11.93% 3,189,910 25 Ocean City Utilities, Inc. Flagler County 2004 1,127,582 4.09% 1,173,700 26 Forest Hills Utilities Pasco County 2004 3,745,000 4.09% 3,898,171 27 Burkim Enterprises, Inc. System Serving Snug Harbor Brevard County 2005 1,595,000 1.03% 1,611,482 28 St. Johns Service Company St. Johns County 2006 26,800,000 0.16% 26,841,987 29 Intercoastal Utilities, Inc. St. Johns County 2007 24,500,000 0.18% 24,544,100 30 Indian Trail Improvement District Palm Beach County 2008 4,875,000 [7] -3.53% 4,703,075 31 Laniger Enterprises of America, Inc. Martin County 2008 1,400,000 -3.53% 1,350,627 32 Miles Grant and Utilities Inc. of Hutchinson Island Martin County 2009 7,500,000 -1.47% 7,389,500 33 Lindrick Service Corporation and Pasco Reserve Inc. Florida Governmental Utility Authority 2009 16,800,000 -1.47% 16,552,480 34 Wedgefield Utilities Inc. Pluris, LLC 2009 7,300,000 -1.47% 7,192,447 35 North Fort Myers Utility, Inc Florida Governmental Utility Authority 2010 55,000,000 [8] -2.37% 53,696,500 36 On Top of the World System Bay Laurel Center Community Development District 2010 34,000,000 -2.37% 33,194,200 37 Rainbow Springs Utilities, L.C. City of Dunnellon 2011 5,950,000 -1.86% 5,839,528 9/18/2017; 1:58 PM Page 3 of 6Table 6-1Collier County Water-Sewer DistrictDevelopment of Time-Adjusted Acquisition PricesTime AdjustedLineYear Acquisition Adjustment PurchaseNo. Name of Utility (Seller) Name of Purchaser Purchased Price Factor [1] PriceReport to Address Requirements of Chapter 125.3401, Florida Statutes38 Mad Hatter Utility Inc. Florida Governmental Utility Authority2012 14,000,000 -1.45% 13,796,533 39 Unified Utility System Florida Governmental Utility Authority 2013 18,061,440 -1.08% 17,866,376 40 Lake County Florida Governmental Utility Authority 2013 14,574,201 -1.08% 14,416,800 41 Pasco County Florida Governmental Utility Authority 2013 16,364,359 -1.08% 16,187,624 42 Dolomite Utilities Corp. Sarosota County 2013 36,800,000 -1.08% 36,402,560 Footnotes start on following page.9/18/2017; 1:58 PM Page 4 of 6Table 6-1 Collier County Water-Sewer DistrictReport to Address Requirements of Chapter 125.3401, Florida StatutesDevelopment of Time-Adjusted Acquisition PricesFootnotes:[1] Adjustment to reflect inflationary effects upon purchase price less an allowance for depreciation of fixed assets. Inflation was based on construction cost index as published by the Engineering News-Record (ENR). Index factors assume annual average as published by ENR and are summarized as follows:ENR Less AdjustedConstruction Percent Depreciation PercentFiscal Year Cost Index Change Allowance [*] Change1991 4889 115.38% 83.33% 32.05%1992 5059 108.14% 80.00% 28.14%1993 5310 98.31% 76.67% 21.64%1994 5439 93.60% 73.33% 20.27%1995 5524 90.62% 70.00% 20.62%1996 5744 83.32% 66.67% 16.65%1997 5858 79.75% 63.33% 16.42%1998 5991 75.76% 60.00% 15.76%1999 6127 71.86% 56.67% 15.19%2000 6283 67.60% 53.33% 14.27%2001 6390 64.79% 50.00% 14.79%2002 6563 60.44% 46.67% 13.77%2003 6782 55.26% 43.33% 11.93%2004 7308 44.09% 40.00% 4.09%2005 7647 37.70% 36.67% 1.03%2006 7888 33.49% 33.33% 0.16%2007 8089 30.18% 30.00% 0.18%2008 8551 23.14% 26.67% -3.53%2009 8641 21.86% 23.33% -1.47%2010 8952 17.63% 20.00% -2.37%2011 9172 14.81% 16.67% -1.86%2012 9412 11.88% 13.33% -1.45%2013 9668 8.92% 10.00% -1.08%2014 9936 5.98% 6.67% -0.69%2015 10152 3.72% 3.33% 0.39%2016 10530 0.00% 0.00% 0.00%[*] Assumptions For Depreciation: Fixed Asset Lifespan (years): 30 Annual Deprecation (%): 3.33%9/18/2017; 3:18 PM Page 5 of 6Table 6-1 Collier County Water-Sewer DistrictReport to Address Requirements of Chapter 125.3401, Florida StatutesDevelopment of Time-Adjusted Acquisition PricesFootnotes:[2] Purchase price included the requirement of the Seller to construct an interconnect to connect the purchased assets to the County system. Net purchase price determined asfollows:Amount Cash at Closing 873,670$ Cost of Interconnect Required of Seller (178,670) Net Purchase Price 695,000$ [3] Purchase price included: i) cash payment at closing; ii) future payments for growth through 2005; and iii) a cash payment once a certain number of ERCs have been connected. Estimated purchase price determined as follows:Amount Notes Cash at Closing 5,500,480$ Present Value of Futures Payments 1,500,000 Assume 200 ERCs at $1500 per ERC, discounted at 6% Present Value of Future Cash Payment 1,500,000 At 200 ERCs per year, reach 3,300 ERCs in year 17 Assumed Purchase Price of Utility 8,500,480$ [4] Marion County entered into agreement with Decca to make future payments past closing based on each new additional ERC that is connected to the Utility System. MarionCounty is required to pay Decca $500 per ERC (for all system ERCs) and make subsequent reimbursement payments of no less than $300,000.00 per annum to an aggregatemaximum of $3,000,000.00.[5] Acquisition price does not include amount due from buyer to seller for accounts receivables. Calculation is as follows:Amount Cash at Closing 86,613,143$ Accounts Receivable (1,300,000) Net Purchase Price 85,313,143$ 9/18/2017; 3:18 PM Page 6 of 6Table 6-1 Collier County Water-Sewer DistrictReport to Address Requirements of Chapter 125.3401, Florida StatutesDevelopment of Time-Adjusted Acquisition PricesFootnotes:[6] Acquisition price does not include amount due from buyer to seller for accounts receivables. Calculation is as follows:Amount Cash at Closing 35,433,538$ Accounts Receivable (836,699) Net Purchase Price 34,596,839$ [7] The acquisition price is comprised of three components as follows:AmountUtility System 318,380$ Stabilization of Certain Roadways for Infrastructure 1,400,000 Relinquishment of Existing and Future Service Area Rights 3,156,620 Total 4,875,000$ [8] i) A cash payment of $55 million at closing; and ii) an amount of up to $25 million ("Future Payments") payable at the rate of fifty percent (50%) of the connection fee collected by Purchaser for each new ERC added to the Utility System within the next 20 years from theClosing Date.9/18/2017; 3:18 PM Page 1 of 3Table 6-2Collier County Water-Sewer DistrictDevelopment of Implied Purchase Price Based on Time-Adjusted Comparable SalesAdjusted Net UtilityLineSystem Purchase Plant-in-Service Percent ofNo. Name of Utility (Seller) Name of Purchaser Type Price [1] Total Total1 Clay Utilities Co., d/b/a South Broward Utility, Inc. City of Sunrise W/S $14,319,250 $12,746,698 112.34%2 Ortega Utility Company JEA (Duval County) W/S 8,311,568 4,355,815 190.82%3 AquaSource Utilities, Inc. (Rotonda System) Charlotte County W/S 23,499,280 10,332,712 227.43%4 IBSCO, Inc. Martin County W/S 804,532 352,845 228.01%5 Gulf Utility Company Gulf Environmental Services Inc. W/S 49,776,800 26,784,446 185.84%6 Florida Cities Water Company - Poinciana Utilities, Inc. Florida Governmental Utility Authority W/S 29,048,000 37,185,988 78.12%7 Florida Cities Water Company - Sarasota System [3] Florida Governmental Utility Authority W/S 14,391,757 12,575,308 114.44%8 Julington Creek Plantation (JCP) Utilities JEA W/S 21,721,041 13,835,775 156.99%9 Fisherman's Cove Utilities Martin County W/S 1,151,933 412,194 279.46%10 Spruce Creek South Utilities, Inc. Florida Water Services, Inc. W/S 9,713,215 7,580,080 128.14%11 Pinelake Village Martin County W/S 182,827 372,979 49.02%12 Regency Utilities Inc. JEA W/S 8,859,492 2,581,005 343.26%13 Decca Utilities Marion County W/S 13,677,229 6,693,094 204.35%14 Florida Water Services, Inc. - Fox Run, Leliani Heights, and Fisherman's Haven (bundled purchase) Martin County W/S 2,630,277 1,552,129 169.46%15 Florida Water Services, Inc. - Beacon Hills, Woodmere, Palm Valley, Remington Forest (bundled purchase) JEA (Duval County) W/S 27,981,667 15,653,669 178.75%16 Florida Water Services - Marco Island and Marco Shores Systems (bundled purchase) City of Marco Island W/S 95,488,157 75,461,250 126.54%17 Florida Water Services Corporation - Citrus Florida Governmental Utility Authority W/S 18,522,002 27,278,462 67.90%Report to Address Requirements of Chapter 125.3401, Florida Statutes9/18/2017; 2:01 PM Page 2 of 3Table 6-2Collier County Water-Sewer DistrictDevelopment of Implied Purchase Price Based on Time-Adjusted Comparable SalesAdjusted Net UtilityLineSystem Purchase Plant-in-Service Percent ofNo. Name of Utility (Seller) Name of Purchaser Type Price [1] Total TotalReport to Address Requirements of Chapter 125.3401, Florida Statutes18 Florida Water Services Corporation - Lehigh Florida Governmental Utility Authority W/S 38,723,088 39,016,133 99.25%19 Florida Water Services Corporation -Nassau Nassau County W/S 19,251,387 8,611,443 223.56%20 Florida Water Services Corporation -Groveland City of Groveland W/S 3,357,800 1,334,141 251.68%21 Florida Water Services Corporation -Toho Tohopekaliga Water Authority W/S 42,611,417 19,132,634 222.72%22 Florida Water Services Corporation Hillsborough County W/S 16,341,293 4,385,897 372.59%23 Florida Water Services Corporation -Marion Marion County W/S 25,015,610 25,358,654 98.65%24 East Pasco Utilities Pasco County W/S 3,189,910 513,398 621.33% 25 Ocean City Utilities, Inc. Flagler County W/S 1,173,700 548,770213.88%26 Forest Hills Utilities Pasco County W/S 3,898,171 589,460 661.31% 27 Burkim Enterprises, Inc. System Serving Snug Harbor Brevard County W/S 1,611,482 400,398 402.47% 28 St. Johns Service Company St. Johns County W/S 26,841,987 17,197,310 156.08% 29 Intercoastal Utilities, Inc. St. Johns County W/S 24,544,100 17,336,163 141.58% 30 Indian Trail Improvement District [5] Palm Beach County W/S 4,703,075 3,698,738 127.15% 31 Laniger Enterprises of America, Inc. Martin County W/S 1,350,627 776,750 173.88%32 Miles Grant and Utilities Inc. of Hutchinson Island Martin County W/S 7,389,500 5,850,055 126.32% 33 Lindrick Service Corporation and Pasco Reserve Inc. Florida Governmental Utility Authority W/S 16,552,480 2,874,035 575.93%34 Wedgefield Utilities Inc. Pluris, LLC W/S 7,192,447 9,840,867 73.09%35 North Fort Myers Utility, Inc Florida Governmental Utility Authority W/S 53,696,500 34,952,139 153.63%36 On Top of the World System Bay Laurel Center Community Development District W/S 33,194,200 34,000,000 97.63%9/18/2017; 2:01 PM Page 3 of 3Table 6-2Collier County Water-Sewer DistrictDevelopment of Implied Purchase Price Based on Time-Adjusted Comparable SalesAdjusted Net UtilityLineSystem Purchase Plant-in-Service Percent ofNo. Name of Utility (Seller) Name of Purchaser Type Price [1] Total TotalReport to Address Requirements of Chapter 125.3401, Florida Statutes37 Rainbow Springs Utilities, L.C. City of Dunnellon W/S 5,839,528 2,627,247 222.27%38 Mad Hatter Utility Inc. Florida Governmental Utility Authority W/S 13,796,533 15,157,892 91.02%39 Unified Utility System Florida Governmental Utility Authority W/S 17,866,376 27,596,645 64.74%40 Lake County Florida Governmental Utility Authority W/S 14,416,800 8,882,275 162.31%41 Pasco County Florida Governmental Utility Authority W/S 16,187,624 5,591,136 289.52%42 Dolomite Utilities Corp. Sarosota County W/S 36,402,560 27,566,220 132.05%43Average Price to Net Investment Ratio136.10%44Evaluation - Net Investment$29,500,96845Impliied Purchase Price$40,151,4059/18/2017; 2:01 PM SECTION 7 IMPACTS OF PURCHASE K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 7-1 SECTION 7 IMPACTS OF PURCHASE 125.3401(6) The impacts of the purchase or sale on utility customers, both positive and negative. There are numerous positive impacts on the utility customers resulting from the acquisition of the water and wastewater utility assets of the Golden Gate System by the District, which are summarized as follows: 1. The Golden Gate System under District ownership will become a part of a large regional utility system. Correspondingly, the ability to finance ongoing infrastructure re-investment needs, the ability to meet increasing regulations on the cost of providing service, and the overall consistency in the management of utility systems located in unincorporated Collier County should result in long-term benefits to the Golden Gate System ratepayers. Additionally, over time the Golden Gate System will receive benefit associated with lower unit costs for utility service (operations and financing of capital needs) due to the overall economies of scale that generally result for regional utilities such as the County (ability to allocate costs over a large customer base, etc.). 2. It is anticipated by the County that upon the acquisition of the Golden Gate System, the rates for monthly utility service will be adjusted to be consistent with the current District rates. The current District rates for both water and wastewater service are lower than the current Golden Gate System rates which will result in a positive impact in the form of rate relief for the existing Golden Gate System customers. Depending on the directions of the Board of County Commissioners, the benefits received by the Golden Gate customers could be significant. Approximately 89% of Golden Gate System water customers and 87% of wastewater customers are classified as residential customers who receive service through a 5/8-inch meter (the smallest meter size in service, which is typically used for providing service to individually-metered single-family residential service customers). Table 7-1 at the end of this section presents a bill comparison of the current Golden Gate System rates to the current CCWSD rates at different usage levels. The combined monthly residential water and wastewater bill comparison as shown on Table 7-1 represents rates as of August 2017 and is summarized on a consolidated basis in the table below: (Remainder of page intentionally left blank) K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 7-2 Combined Monthly Residential Bill – Fiscal Year 2017 FGUA Golden Gate System Rates to CCWSD Rates [*] Monthly Bill Under Bill Under Change % of Bills Use (Gal.) FGUA Rates CCWSD Rates Amount % Rendered 0 $63.33 $53.56 ($9.77) -15.4% 4.6% 1,000 76.70 61.03 (15.67) -20.4% 9.8% 2,000 90.07 68.50 (21.57) -23.9% 19.8% 3,000 103.44 75.97 (27.47) -26.6% 33.0% 4,000 116.81 83.44 (33.37) -28.6% 47.4% 5,000 130.18 90.91 (39.27) -30.2% 61.0% 6,000 143.55 99.85 (43.70) -30.4% 72.0% 7,000 150.37 108.79 (41.58) -27.7% 80.1% 8,000 157.19 117.73 (39.46) -25.1% 86.0% 9,000 164.01 126.67 (37.34) -22.8% 90.0% 10,000 170.83 135.61 (35.22) -20.6% 92.6% 11,000 178.59 145.99 (32.60) -18.3% 94.4% 12,000 186.35 156.37 (29.98) -16.1% 95.7% 13,000 194.11 166.75 (27.36) -14.1% 96.7% 14,000 201.87 177.13 (24.74) -12.3% 97.4% 15,000 209.63 187.51 (22.12) -10.6% 97.9% 16,000 217.39 193.33 (24.06) -11.1% 98.3% 17,000 225.15 199.15 (26.00) -11.5% 98.6% 18,000 232.91 204.97 (27.94) -12.0% 98.9% 19,000 240.67 210.79 (29.88) -12.4% 99.1% 20,000 248.43 216.61 (31.82) -12.8% 99.2% = Estimated Average Residential Water Usage for single-family residential customer in the FGUA Golden Gate System service area. ________ [*] Amounts derived from Table 7-1; reflects residential service on a combined water and wastewater utility service basis. 3. Another positive impact of the County's acquiring the Golden Gate System relates to the County's plans for capital investment in the Golden Gate System. As discussed in further detail in Section 8 of this report, the CCWSD plans to interconnect the Golden Gate water system to the CCWSD's regional potable water system with a goal of: i) removing water treatment facilities from service to provide for improved water resource management and delivery and the overall regionalization of water service; and ii) providing 100% fire hydrant coverage to greater than 90% of residences in the primary Golden Gate System service area. A longer-term goal (within 10 to 20 years after acquisition) is to i) make the necessary investments to extend regional wastewater service to residences and commercial properties currently being served by on-site disposal systems (i.e., septic tanks) to promote the long-term environmental needs of the County and to assure that all wastewater customers have access to the treatment and disposal needs that meets the then effective regulations; and ii) interconnect the wastewater systems as the Golden Gate System wastewater treatment facility begins to reach their estimated useful service life. 4. Management policies would be more beneficial to the Golden Gate System under District ownership since there will be common and consistent construction standards, extension policies, fees for new development, customer service and accounting policies, and other standards applied to new and existing customers of the Golden Gate System (all policies and fees will be consistent with other County policies and fees). K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 7-3 5. Do to the regional nature of the District System and the more favorable ability to finance utility infrastructure, the District should be able to better control and correct any current or future regulatory environmental impacts and provide surface, groundwater, and other environmental protection which will promote the public health, safety, and welfare of the public. 6. Customers of the Golden Gate System should receive improved local representation relative to customer service, rate regulatory issues, and overall system operations since those customers will be served and represented by the BOCC. The negative impacts associated with the proposed utility acquisition are the following: 1. A negative impact associated with the proposed utility acquisition is that, as owner of the Golden Gate System, the County will have to assume responsibility for operations and maintenance of the system and ensure that any capital deficiencies are corrected in order to meet County operating standards. The County will be required to assume all the future liabilities involved in ownership of the Golden Gate System, if any, and responsibility for the application of rates and charges. 2. The addition of the Golden Gate System and the attendant additional debt in order to finance the acquisition of such system will have a near-term negative fiscal affect to the current financial position of the District System. Although it is anticipated that there would be a reduction in several financial metrics of the District System (e.g., net revenue margin relationship, debt service coverage, etc.), the acquisition of the Golden Gate System is not anticipated to have a significant impact on the existing customers currently being served by the District or to result in an immediate reduction to the credit rating of the District from a financial standpoint. The transaction will not compromise the ability of the District Net Revenues to meet the rate covenants as delineated in the Bond Resolution which authorized the issuance of the Districts outstanding utility revenue bonds (senior lien). (Remainder of page intentionally left blank) Page 1 of 3 WATER BILL Line No. 1 Base Rate $27.48 Base Rate $21.19 Rate per kgal Rate per kgal 2 0 to 6,000 gallons $6.21 0 to 5,000 gallons $2.91 3 6,001 to 10,000 gallons 6.82 6,000 to 10,000 gallons 4.38 4 10,001 to 20,000 gallons 7.76 11,000 to 20,000 gallons 5.82 5 Over 20,000 gallons 9.69 21,000 to 30,000 gallons 7.27 6 31,000 to 50,000 gallons 8.72 7 Over 50,000 gallons 11.62 Existing New Monthly Use Water Monthly Use Water % of Bills (gal) Bill (gal) Bill Amount % Rendered 8 0 $27.48 0 $21.19 ($6.29) -22.9% 4.6% 9 1,000 33.69 1,000 24.10 (9.59) -28.5% 9.8% 10 2,000 39.90 2,000 27.01 (12.89) -32.3% 19.8% 11 3,000 46.11 3,000 29.92 (16.19) -35.1% 33.0% 12 4,000 52.32 4,000 32.83 (19.49) -37.3% 47.4% 13 5,000 58.53 5,000 35.74 (22.79) -38.9% 61.0% 14 6,000 64.74 6,000 40.12 (24.62) -38.0% 72.0% 15 7,000 71.56 7,000 44.50 (27.06) -37.8% 80.1% 16 8,000 78.38 8,000 48.88 (29.50) -37.6% 86.0% 17 9,000 85.20 9,000 53.26 (31.94) -37.5% 90.0% 18 10,000 92.02 10,000 57.64 (34.38) -37.4% 92.6% 19 11,000 99.78 11,000 63.46 (36.32) -36.4% 94.4% 20 12,000 107.54 12,000 69.28 (38.26) -35.6% 95.7% 21 13,000 115.30 13,000 75.10 (40.20) -34.9% 96.7% 22 14,000 123.06 14,000 80.92 (42.14) -34.2% 97.4% 23 15,000 130.82 15,000 86.74 (44.08) -33.7% 97.9% 24 16,000 138.58 16,000 92.56 (46.02) -33.2% 98.3% 25 17,000 146.34 17,000 98.38 (47.96) -32.8% 98.6% 26 18,000 154.10 18,000 104.20 (49.90) -32.4% 98.9% 27 19,000 161.86 19,000 110.02 (51.84) -32.0% 99.1% 28 20,000 169.62 20,000 115.84 (53.78) -31.7% 99.2% 29 25,000 218.07 25,000 152.19 (65.88) -30.2% 99.6% 30 30,000 266.52 30,000 188.54 (77.98) -29.3% 99.7% 31 35,000 314.97 35,000 232.14 (82.83) -26.3% 99.8% 32 40,000 363.42 40,000 275.74 (87.68) -24.1% 99.9% 33 45,000 411.87 45,000 319.34 (92.53) -22.5% 99.9% 34 50,000 460.32 50,000 362.94 (97.38) -21.2% 99.9% Table 7-1 Collier County Water-Sewer District Report to Address Requirements of Chapter 125.3401, Florida Statutes Bill Comparison - Fiscal Year 2017 FGUA Golden Gate System Rates vs. CCWSD Rates Approximately 89% of FGUA Golden Gate Water Customers and 87% of Wastewater Customers are 5/8" Meter Residential Customers Change Existing FGUA Golden Gate System Monthly Water Rates Collier County Water-Sewer District Monthly Water Rates 9/18/2017; 2:52 PM Page 2 of 3 Table 7-1 Collier County Water-Sewer District Report to Address Requirements of Chapter 125.3401, Florida Statutes Bill Comparison - Fiscal Year 2017 FGUA Golden Gate System Rates vs. CCWSD Rates Approximately 89% of FGUA Golden Gate Water Customers and 87% of Wastewater Customers are 5/8" Meter Residential Customers WASTEWATER BILL Line No. 35 Base Rate $35.85 Base Rate $32.37 Rate per kgal Rate per kgal 36 All Billed Consumption $7.16 All Billed Consumption $4.56 (capped at 6,000 gallons) (capped at 15,000 gallons) Existing New Monthly Use Wastewater Monthly Use Wastewater % of Bills (gal) Bill (gal) Bill Amount % Rendered 37 0 $35.85 0 $32.37 ($3.48) -9.7% 4.6% 38 1,000 43.01 1,000 36.93 (6.08) -14.1% 9.8% 39 2,000 50.17 2,000 41.49 (8.68) -17.3% 19.8% 40 3,000 57.33 3,000 46.05 (11.28) -19.7% 33.0% 41 4,000 64.49 4,000 50.61 (13.88) -21.5% 47.4% 42 5,000 71.65 5,000 55.17 (16.48) -23.0% 61.0% 43 6,000 78.81 6,000 59.73 (19.08) -24.2% 72.0% 44 7,000 78.81 7,000 64.29 (14.52) -18.4% 80.1% 45 8,000 78.81 8,000 68.85 (9.96) -12.6% 86.0% 46 9,000 78.81 9,000 73.41 (5.40) -6.9% 90.0% 47 10,000 78.81 10,000 77.97 (0.84) -1.1% 92.6% 48 11,000 78.81 11,000 82.53 3.72 4.7% 94.4% 49 12,000 78.81 12,000 87.09 8.28 10.5% 95.7% 50 13,000 78.81 13,000 91.65 12.84 16.3% 96.7% 51 14,000 78.81 14,000 96.21 17.40 22.1% 97.4% 52 15,000 78.81 15,000 100.77 21.96 27.9% 97.9% 53 16,000 78.81 16,000 100.77 21.96 27.9% 98.3% 54 17,000 78.81 17,000 100.77 21.96 27.9% 98.6% 55 18,000 78.81 18,000 100.77 21.96 27.9% 98.9% 56 19,000 78.81 19,000 100.77 21.96 27.9% 99.1% 57 20,000 78.81 20,000 100.77 21.96 27.9% 99.2% 58 25,000 78.81 25,000 100.77 21.96 27.9% 99.6% 59 30,000 78.81 30,000 100.77 21.96 27.9% 99.7% 60 35,000 78.81 35,000 100.77 21.96 27.9% 99.8% 61 40,000 78.81 40,000 100.77 21.96 27.9% 99.9% 62 45,000 78.81 45,000 100.77 21.96 27.9% 99.9% 63 50,000 78.81 50,000 100.77 21.96 27.9% 99.9% Existing FGUA Golden Gate System Monthly Wastewater Rates Collier County Water-Sewer District Monthly Wastewater Rates Change 9/18/2017; 2:52 PM Page 3 of 3 Table 7-1 Collier County Water-Sewer District Report to Address Requirements of Chapter 125.3401, Florida Statutes Bill Comparison - Fiscal Year 2017 FGUA Golden Gate System Rates vs. CCWSD Rates Approximately 89% of FGUA Golden Gate Water Customers and 87% of Wastewater Customers are 5/8" Meter Residential Customers COMBINED BILL Existing New Line Monthly Use Combined Monthly Use Combined % of Bills No.(gal) Bill (gal) Bill Amount % Rendered 64 0 $63.33 0 $53.56 ($9.77) -15.4% 4.6% 65 1,000 76.70 1,000 61.03 (15.67) -20.4% 9.8% 66 2,000 90.07 2,000 68.50 (21.57) -23.9% 19.8% 67 3,000 103.44 3,000 75.97 (27.47) -26.6% 33.0% 68 4,000 116.81 4,000 83.44 (33.37) -28.6% 47.4% 69 5,000 130.18 5,000 90.91 (39.27) -30.2% 61.0% 70 6,000 143.55 6,000 99.85 (43.70) -30.4% 72.0% 71 7,000 150.37 7,000 108.79 (41.58) -27.7% 80.1% 72 8,000 157.19 8,000 117.73 (39.46) -25.1% 86.0% 73 9,000 164.01 9,000 126.67 (37.34) -22.8% 90.0% 74 10,000 170.83 10,000 135.61 (35.22) -20.6% 92.6% 75 11,000 178.59 11,000 145.99 (32.60) -18.3% 94.4% 76 12,000 186.35 12,000 156.37 (29.98) -16.1% 95.7% 77 13,000 194.11 13,000 166.75 (27.36) -14.1% 96.7% 78 14,000 201.87 14,000 177.13 (24.74) -12.3% 97.4% 79 15,000 209.63 15,000 187.51 (22.12) -10.6% 97.9% 80 16,000 217.39 16,000 193.33 (24.06) -11.1% 98.3% 81 17,000 225.15 17,000 199.15 (26.00) -11.5% 98.6% 82 18,000 232.91 18,000 204.97 (27.94) -12.0% 98.9% 83 19,000 240.67 19,000 210.79 (29.88) -12.4% 99.1% 84 20,000 248.43 20,000 216.61 (31.82) -12.8% 99.2% 85 25,000 296.88 25,000 252.96 (43.92) -14.8% 99.6% 86 30,000 345.33 30,000 289.31 (56.02) -16.2% 99.7% 87 35,000 393.78 35,000 332.91 (60.87) -15.5% 99.8% 88 40,000 442.23 40,000 376.51 (65.72) -14.9% 99.9% 89 45,000 490.68 45,000 420.11 (70.57) -14.4% 99.9% 90 50,000 539.13 50,000 463.71 (75.42) -14.0% 99.9% Change 9/18/2017; 2:52 PM SECTION 8 ADDITIONAL INVESTMENT REQUIRED K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 8-1 SECTION 8 ADDITIONAL INVESTMENT REQUIRED 125.3401(7) Any additional investment required and the ability and willingness of the County to make that investment. As documented in Section 5 regarding the current physical condition of the Golden Gate System, it was determined that the wastewater treatment facility and collection system are in generally good condition. However, continued capital investment is required to maintain the wastewater treatment facilities and the collection system. Initial upgrades were recommended in the Technical Feasibility Study report dated June 13, 2017. The Technical Feasibility Study includes the following near-term improvements and evaluations for the wastewater system: Estimated Costs for Golden Gate Wastewater Treatment and Collection System Near-Term Improvements and Evaluations [1] Project Amount Replace Hatches / Handrails and Address Corrosion at Headworks $95,000 Address Corrosion at Facilities 60,000 Repair Pump Mount and Remove Corrosion / Coat Piping at the Deep Injection Well Pump Station 25,000 Evaluate Generator Capacity 10,000 Perform Wastewater Collection System Rehabilitation Study 100,000 Total Cost $290,000 ________ [1] Amounts shown are contained in Technical Feasibility Study report; reference Appendix A at the end of this report for a copy of the executive summary to the Technical Feasibility Study. AECOM concurs with the $190,000 earmarked for near-term wastewater treatment plant upgrades given the recent improvements made. However, it is recommended that the $100,000 identified for Wastewater Collection System Rehabilitation Study be increased so that a Sanitary Sewer Assessment can be completed to identify deficiencies in the collection system and to develop a prioritized list of improvements to be implemented as part of a capital improvement program. The Sanitary Sewer Assessment is recommended to include field investigative work such as television inspection and manhole inspections. Therefore, preliminary costs for this assessment are estimated to be approximately $300,000 to $400,000, which would increase the budget for the Collection System Rehabilitation Study to $400,000. Consequently, the recommended implementation cost for near term improvements is $590,000. AECOM observed that the FGUA potable water distribution system is in need of upgrades. Also, the lime softening water treatment facility is in poor condition, requiring further evaluation of the structural integrity of the existing tankage. The RO system is in need of upgrades to improve efficiencies, which ultimately require refurbishment and expansion of the raw water supplies. Similar observations were noted in the Technical Feasibility Study along with recommended near-term improvements to interconnect the FGUA potable water service area with the CCWSD potable water service area. The interconnection proposed in the Technical Feasibility Study included new piping from the CCWSD potable water main located at the K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 8-2 intersection of Collier Boulevard and Green Boulevard to the existing FGUA potable water storage tank and booster pump station (located on Green Boulevard), along with the addition of a 2 million-gallon (MG) potable water storage tank and expansion of the existing booster pump station. The Technical Feasibility Study also recommended near-term projects to complete a detailed evaluation of the FGUA Water Treatment Plant, an evaluation of the potable water production well performance, and a water distribution system rehabilitation study. The costs of these near-term improvements are summarized below: Estimated Costs for Golden Gate Water Treatment and Distribution System Near-Term Improvements and Evaluations [1] Project Amount CONNECT TO CCWSD POTABLE WATER SYSTEM Engineering $467,000 2 Million-Gallon Tank at Booster Site 1,700,000 Booster Station Expansion 750,000 Tie-In to 36-Inch 30,000 Canal Crossing 500,000 State Road 951 Horizontal Directional Drill 750,000 16-Inch PVC 864,000 Connect to FGUA System 30,000 Instrumentation and Control Systems Upgrades 50,000 Subtotal $5,141,000 ADDITIONAL IMPROVEMENTS Evaluate Potable Water Production Well Performance $45,000 Perform Detailed Water Treatment Plant Evaluation 75,000 Perform Water Distribution System Rehabilitation Study 100,000 Subtotal $220,000 Total Cost $5,361,000 ________ [1] Amounts shown are contained in Technical Feasibility Study report; reference Appendix A at the end of this report for a copy of the executive summary to the Technical Feasibility Study. AECOM is in agreement with the conclusion provided in the Technical Feasibility Report that upgrades are needed to the potable water distribution system, and the FGUA potable water system is recommended to be interconnected with the CCWSD potable water system. However, AECOM recommends that the plan to interconnect the systems be modified to include three interconnection points and the decommissioning of the Water Treatment Plant, a plan currently being evaluated by CCWSD staff. The FGUA potable water service area is contiguous with the CCWSD potable water service area and it is located in close proximity to the South County Regional Water Treatment Facility. Therefore, decommissioning the FGUA Water Treatment Plant facilities in lieu of planning to make the necessary upgrades to the RO system and raw water supplies is recommended after the two potable water service areas are interconnected. The CCWSD is currently developing construction plans to interconnect the CCWSD potable water system to the FGUA system in three locations. AECOM has reviewed 60% design plans to interconnect the potable water systems (three locations) and the opinion of probable K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 8-3 construction cost that has been developed and concurs with the preliminary plans and associated probable construction cost of $1.1 million. However, AECOM recommends that additional hydraulic modeling of the potable water system be completed to verify that the system is able to meet the current CCWSD level of service standards associated with available pressure, potable water storage, and domestic and fire protection demands. AECOM anticipates the cost of this modeling would be approximately $150,000. AECOM also recommends that $100,000 should be put in place to address piping upgrades along with the $100,000 earmarked in the Technical Feasibility Report for a Water Distribution System Rehabilitation Study. The purpose of the Study is to complete a detailed assessment of the water distribution system in order to identify deficiencies, planned improvements with construction costs, and a prioritization of improvements to facilitate capital planning. The total cost for recommended near-term improvements and evaluations for the water system would be $1.45 million. The County staff is currently evaluating options associated with decommissioning or reusing the existing facilities, and there will be additional costs depending upon the option ultimately selected. The Technical Feasibility Study report also provided estimated costs for future improvements to be implemented within a ten-year period to increase reliable potable water service and provide 100% fire hydrant coverage to greater than 90% of residences in the primary service area. The budgetary cost estimate for these "Phase 2 Improvements" is $21,212,250. Finally, the Technical Feasibility Study report provided cost estimates for long-term improvements to provide increased wastewater service to residences and commercial properties currently on septic tanks that could be implemented between 10 and 20 years after acquisition. The budgetary cost estimate for these "Phase 3 Improvements" is $26,348,000. The implementation costs for Phase 2 and Phase 3 Improvements are currently under review by AECOM. The County has the financial capacity and expertise to finance and manage the additional capital investment as noted herein for near-term improvements and as delineated in the Technical Feasibility Report for future improvements. (Remainder of page intentionally left blank) SECTION 9 ALTERNATIVES TO THE PURCHASE K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 9-1 SECTION 9 ALTERNATIVES TO THE PURCHASE 125.3401(8) The alternatives to the purchase or sale and potential impact on utility customers if the purchase or sale is not made. If the Golden Gate System were not purchased by the County, the system would most likely continue to be operated by FGUA since there exists an existing agreement granting the District the right to purchase the utility and such utility is located within the service territory of the District (is not located in any municipality or outside the boundaries of the District). The existing Golden Gate System would continue to be managed by the FGUA and the customers would continue to pay monthly user rates as established by the FGUA, which are currently higher than the rates charged by the District. The capital improvements identified in Technical Feasibility Study or as identified by the FGUA to address the utility plant issues would still need to be funded, which could affect monthly service rates in the future if debt financing is required to fund the improvements. While it is possible that an outside investor may offer to purchase the Golden Gate System, it is unlikely that private ownership would provide the same level of benefits to the customers as provided under FGUA or County ownership nor it is anticipated that the County would assign the right to purchase the Golden Gate System to a private investor or utility. (Remainder of page intentionally left blank) SECTION 10 STATEMENT OF QUALITY SERVICE K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 10-1 SECTION 10 STATEMENT OF QUALITY SERVICE 125.3401(9) The ability of the purchaser to provide and maintain high-quality and cost-effective utility service, whether the purchaser is the County or the entity purchasing the utility from the County. The District, which surrounds the utility service area of the Golden Gate System, has consistently operated in a prudent and efficient manner the District System, a large regional public water and wastewater utility system in Florida. The District has consistently complied with all regulations required by various regulatory agencies and rate covenants dictated by financing institutions and has continuously provided and maintained high-quality and cost-effective utility services. In addition, the District has maintained a renewal and replacement fund / capital improvement fund for the ongoing capital re-investment / replacement of the utility plant components within the District system to ensure that the District System continues to provide the adopted level of service to its customers. The District is rated "AAA" by Fitch Ratings and "Aa1" by Moody's Investors Service, Inc., and these high credit ratings represent a positive reflection on the management of the District. The District has consistently met the financial and rate covenants outlined in the Bond Resolution, which authorized the issuance of the outstanding utility revenue bonds for the funding of capital expenditures. Based on the foregoing, the management of the District is of the opinion that it will be able to continually provide and maintain the high-quality and cost-effective utility service required to meet the level of service standards of the utility. (Remainder of page intentionally left blank) SECTION 11 STATEMENT OF PUBLIC INTEREST K:\DC1125-45\Rpt\Chapter 125 Report\Briefing Doc 125 Hearing 11-1 SECTION 11 STATEMENT OF PUBLIC INTEREST Statement of Public Interest. Based upon the foregoing, the County is of the opinion that the purchase of the Golden Gate System is in the public interest and that the County has the technical experience and the financial capability to provide high-quality, long-term, and sustainable water and wastewater service to the customers of such system. (Remainder of page intentionally left blank) APPENDIX A EXECUTIVE SUMMARY OF TECHNICAL FEASIBILITY REPORT