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Agenda 10/28/2008 Item #10C Agenda Item No. 10C October 28, 2008 Page 1 of 106 EXECUTIVE SUMMARY Recommendation to review and approve the proposed Collier County 2009 State Legislative Priorities which then will be discussed next at a joint Board of County Commissioners and Collier County Legislative Delegation Pre 2009 Legislative Session Workshop scheduled on November 14, 2008. OBJECTIVE: To review and approve the proposed list of Collier County 2009 State Legislative Priorities which will then be discussed jointly at the Roard of County Commissioners (BCC) and Collier County Legislative Delegation Prc 2009 Legislative Session Workshop scheduled on November 14, 2008 from 1 to 4 p.m. Following those deliberations, final endorsement will be scheduled at the regular meeting December 2, 2008. The BCC-approved slate of Collier County 2009 State Legislative Priorities will then be presented by BCC Chairman Tom Henning at the Collier County Legislative Delegation Public Hearing on December] 0, 2008 beginning at 2 p.m. in the Board of County Commissioners chambers on the third floor of the W. Harmon Turner Building, Administration Building F, 3301 East Tamiami Trail, Naples, Fl. - Also, upon Board of County Commissioners direction, County Manager Jim Mudd will direct staff to provide the Collier County 2009 State Legislative Priorities to the County's state lobbying firm, J. Keith Arnold and Associates, which will continue representing the County's interests in Tallahassce through the 2009 Legislative Session, as well as the Florida Association of Counties (F AC) and the six -county Southwest Florida Legislative Consortium. CONSIDERATION: To develop Collier County government's proposed legislative platform, the Board of County Commissioners and Collier County staff were asked for input and staff also reviewed the issues and summaries of the 2008 Legislative Session as provided by the County's governmental consultant, J. Keith Arnold and Associates, and the F AC. Staff also consulted with J. Keith Arnold and Associates, and other F AC members, County officials and staff at the F AC Confercnce in Clcarwater in September 2008, and reviewed upcoming issues and received updates and forecasts in recent F AC conference calls. - Once the BCC reviews the proposed list and identifics the list of Collier County 2009 State Legislative Priorities, that slate will next be discussed and deliberated by the BCC and the Collier County Legislative Delegation and/or the state legislators' staff representatives at a joint Pre 2009 Legislative Session Workshop on November 14,2008. Word was received on October 15 that the orientation for incoming freshmen House of Representatives members has been changed to November 12-14 in Tallahassee by the House Speaker. That means Represcntative-elect Tom Grady and Representative Matt Hudson (election dependent) who is Delegation Chainnan, \-vill not be in attendance in 1 Agenda Item NO.1 OC October 28, 2008 Page 2 of 106 person at the workshop. Staff is hopeful they can participate by telephone, their respective schedules permitting in Tallahassee. Calendars of state legislators, BCC meetings, boardroom commitments, etc., through November, as well as deadlines for legislative filings prior to the December 10th Delegation meeting make re-scheduling the workshop impossible at this late date, unfortunately. Senator-elect Garret Richter has confirmed his attendance. The following is a proposed list of Collier County 2009 State Legislative Priorities: Collier Countv 2009 State Legislative Priorities I. Property Insurance - Continue to monitor property insurance costs as another of the economic hardships burdening County citizens. II. Affordable Housing- Support removal of the cap on Sadowski Housing Trust Funds which would mean an additional hundreds of millions of dollars dedicated to affordable housing, depending on the amount of Documentary Stamp revenue collections. Support using this money to buy and fix up affordable foreclosure properties so they can return to the marketplace. III. Real Estate Transfer Fee - Support introducing a Local Option I Percent Real Estate Transfer Fee that would be subject to approval by the Board of County Commissioners. The provision was not filed as a bill for 2008. In the 2008 budget climate and interest by the State Legislature to limit local government revenues, the political reality in Tallahassee for a proposed fee was slim. '!be measure was introduced the previous year as a bill. but was tied to the elimination of impact fees for any local government implementing the transfer fee. IV. Impact Fees - Support maintaining home rule authority over administration of the County's existing impact fee program. In Fiscal Year 2008 impact fee collections totaled $45,892,730, which includes $28,738,664 in transportation impact fees. This is less than half of the Fiscal Year 2007 collections. The 2008 capital construction program - buildings, roads, capital projects, etc. - was $440,733,600. \Vhat is very important to realize is that impact fees pay a large part of the County's debt service. If they were to be frozen or discontinued in 2009, the County would need a ncw source of some $32 million annually to meet debt service obligations. According to F AC, impact fees will be a target in the 2009 Legislative Session and they fully cxpect that bills and amendments will be filed in 2009 limiting the home rule authority of local governments to administer impact fees. V. Revenue Enhancements- . Internet Sales Tax Collections - Support legislation that would revise the Florida tax code to make it more uniform with those of 22 other states so the Sunshine State can capture up to $2 billion in currcntly uncollected revenues from Internet and mail order sales. Florida's participation in the Streamlined Sales and ,<..-., 2 A;:)enda Item NO.1 DC October 28, 2008 Page 3 of 106 Use Tax Agreement would allow it to obtain revenue from 1,100 companies that voluntarily collect taxes for the participating states. . Dot.com The tourism industry position on Dot.coms is to have those companies collect and pay the sales and tourist development tax due on the total amount charged the visitor, not the net amount paid the hotel. Also, the industry believes if the collection and payment of the full amount is agreed to by the Dot.coms that the past amounts and penalties due should be waived or forgiven. The revenue lost to both the state and counties from the actual taxes due and what is currently received is significant. The last time Tourism staff checked with our County Tax Collector the estimate was $750,000 lost to Collier County. . Reduce the Number of Sales Tax Exemptions - The State of Florida currently exempts billions of dollars annually for various taxes on goods sold in the state. The State Legislature should at the least periodically review these exemptions for possible repeal considering the budget shortages faced by the state for the foreseeable future. The State is currently experiencing a $1.5 billion shortage in its $66 billion budgct and Gov. Crist has asked for 10 percent agency cuts. Projections have come out with an additional $2 to $3 billion shortage estimated on top of that in State's next year budget. The State's budget has decreased over the last two budget years by 15 percent. VI. Partial-Year Assessments - Currently real estate in Collier County is assessed annually on January 1. This means if you purchase your property after January 1 and make improvements during that year, those improvements are not recognized by the Property Appraiser until the following year. A more effective way to generate the revenues necessary to pay for the services provided would be to appraise property as additions or newly constructed homes are completed. Revenues generated from a partial- year assessment plan if implemented were estimated in Fiscal Year 2006 to be between $2 and $3 million for Collier County. During the legislative discussions on property tax reform during the 2008 Legislative Session there was a concerted effort to cap and cut local government ad valorem tax revenues. In this environment, the political will to successfully pass partial-year assessments, which would increase local ad valorem revenues, \vas non-existent. In 2009, the climate is expccted to be different and perhaps ripe for a partial-year assessment discussion. --, VII. Protect Home Rule - Support home rule authoritv of locall!overnments is an overall legislative theme more than it is a specific issue. In 2008 there were numerous bills on varied issues that attempted to erode the home rule authority of county governments. That legislation proposed in Tallahassee put advocates and lobbyists in a very defensive posture during the 2008 Legislative Session. Unfunded mandates, restrictions or moratoriums on local ordinances, and threatened lessening of BCC powers 3 ,A"genda Item NO.1 OC October 28, 2008 Page 4 of 106 put local governments in opposition to many bills put fOfVv'ard by their state representatives in the Florida Legislature. Major issues during 2008 that jeopardized home rule included aggregate mining preemption, fertilizer local ordinance preemption, public construction contracting preemption, impact fee reductions, growth management revisions and agricultural enclave zoning preemptions. Those actions helped to facilitate extraordinary cooperation and communication between County staff, lobbyists and F AC. All worked together to formulate strategies to defeat, amend, or compromise on the many bad bills aimed at local governments. There will most likely be an effort during the 2009 Legislative Session to pursue many of the same local rule/unfunded mandate legislation. Fertilizer ordinance legislation, aggregate mining, and the Clerk's bill were each defeated last year. Counties must monitor, identify, and implement strategies to defeat or reach a favorable compromise on these issues if and when they are introduced in 2009. ,c-. VIII. Unfunded Mandates - The economic downturn is being felt nationally, statewide and on the local level. Despite the fact that the State of Florida has a $1.5 billion current year shortage and estimated $2 to 2.5 billion shortfall in the upcoming year due to the housing slump, unfunded mandates imposed from Tallahassee on local governments continue to be an unwelcome burden, especially in the wake of the 2007 legislative tax reform and the January 2008 statewide referendum, knovvn as Amendment 1, which imposed a significant mandate on local government. Support: amending Florida's Constitution in unfunded mandate provision with implementing legislation providing for local governments increased protection, accountability, oversight, transparency and fiscal stewardship. (Similar to language in F AC Policy Statement) Specifically and recently regarding unfunded mandates, on October 16, the Agency for Health Care Administration (AHCA) has proposed increasing the county share of the state's Medicaid cost for nursing homes. This year's suggestion is to increase the county share from $55 a month per person to $202 per person, representing an unacceptable three-fold financial impact on Collier County. In Fiscal Year 2008, Collier County contributed toward the cost of care for an average of275 participants for $181,500. The Fiscal Year 2009 anticipated expense will be $666,600 if the increase is implemented. In addition, Collier County had 145 "re-bills" in Fiscal Year 2008 that will cost $378,144 in Fiscal Year 2009, up from $102,960. Total impact: $760,284. The $55 per patient per month is in statute and the change ACHA wants would require an act of the Florida Legislaturc. (See attached) IX. Revenue & Expenditure Caps (TABOR) - Oppose legislative or Constitutional restrictions on County authority to determine local tax burden or local financial commitments to services and quality of life. (F AC Policy Statement) This priority/statement is a precaution against future legislation like Constitutional Proposal 2, also known as TABOR, which was proposed by the Florida Taxation and Budget Reform Commission, but failed to get enough support to make the November ballot. If enacted, the cap on the annual growth ofasscssmcnts of non-homestead properties would have ,......."', 4 p,genda Item NO.1 OC October 28, 2008 Page 5 of 106 resultcd in reduced local government revenues and incvitably led to an increase in millage rates on all propcrties. In a recent F AC communique, the following information was provided: This week the National Federation of Independent Busincsses (NFIB) and other groups launched a campaign to amend Florida's constitution with TABOR. The petition drive will attempt to have the amendment on the November 2010 ballot. The amendment would require revenue caps on local governments increasing at CPI + population, requiring a voter referendum to override those caps. In response to the campaign launch, F AC s Chris Holley released the following statement: "T ABOR is a national movement to set revenue and spending caps on governments and place oversight of those caps in the hands of the electorate. And while the group launching today may have changed the name, the policy is the same. No matter how good it sounds in theory, in practice, TABOR stunts cconomic grow1h and slashes funding for critical services and infrastructure. Florida's local governments have reduced property taxes by $2.3 billion in 2007 and more than $24 billion over the next five years. The Florida Association of Counties would like to see a reduction in government not by imposing TABOR's arbitrary caps but by eliminating duplicative services; keeping power with the government closest to the people; and removing the state's ability to pass down unfunded mandates. I hope Florida can learn from Colorado's TABOR mistake. Despite the national scope of the TABOR movement and its initiatives in 25 states, Colorado is the only state in the nation that has TABOR. Voters there approved the constitutional amendment in 1992, and it had such a debilitating impact on the state's economy that they suspended the measure in 2005. TABOR would create many problems for Florida's economy and the way our government providcs services. Typically TABOR ties government revenue increases to the Consumer Price Index (CPI). The CPI is a tool of the federal government as an indicator of inflation and therefore, great pains are taken to keep this number low. When this numher rises to any degree then it also means that your cost of goods: milk, eggs and other necessitics havc riscn as well. Therefore, in a timc when the pcople can least afford it TABOR would require government revenucs to rise. CPT is not an indicator of the health and viability of our economy or your personal income and should not be the economic factor setting government gro\\1h." X. Transportation . Oppose raiding of the Transportation Trust Fund - The State Legislature will increasingly be looking for funds to supplement the General Revenue this session as the state deals with a projected $2 to $3 billion shortfall in 2009. .---.. . Indexing of Local Option Gas Tax - The state, over 13 years ago, authorized that the state motor fuel tax be annually indexed to the Consumer Price Index (CPI) to allow the purchasing powcr of the tax to be maintained as costs increased over time. However. they did not provide for the same indexing of the Local 5 P,genda Item ~,Jo. 10C October 28. 2008 Page 6 of 106 Option Gas Taxes imposed by the counties. As such, the buying power of the local tax has decreased as costs have increased. . Earlier Receipt of Crash Reports - Support including local traf1ic engineering agencies with police agencies in being able to receive crash reports without current 60-day wait. New statutes require that police agencies do not distribute crash reports for 60 days after a crash, except for a few very limited cases. This 60-day delay was determined by the Florida Highway Patrol (FHP) Gcneral Counsel to apply not only to the public, but also other police agencies and local transportation agencies. This means that if there are crashes. evcn fatal ones, our Traffic Operations office cannot receive copies of the crash report from the investigating police agency for 60 days. This hinders the County's safety investigations and attempts to mitigate what may be hazardous roadway situations, as much of the information that staff works with are witness reports and descriptions listed only in the on-site police crash reports. The vast majority of fatal crashes are investigated by the FlIP, and requiring a 60-day delay to be given the reports puts us 60 days late in possibly responding to a previously unknown traffic hazard. . Pass red light running camera enforcement - Support enforcement of red light running camera enforcement that would make it a moving violation, assign driver's license points, and notify insurers. The issue has been around for several years, failing to reach full passage because of strong opposition by kcy lawmakers. The bill would authorize local governments statewide to enact ordinances which establish electronic photo detection devises at specified intersections for the purpose of automatic detection of red light violators. . Modification to Section 339.135(4)(a)1, Florida Statutes to strengthen requirement for use of an allocation formula "to assure that no district or county is penalized for local efforts to improve the State Highway System." Specifically, to restrict the application of "other programs with quantitative needs assessment" and to secure more state and federal funds allocated to the counties by one-half population and one-half gas tax proceeds (statutory formula). As an alternative, the needs assessment used as a basis for allocation of fcderal and state funds need to be subjectcd to further reviews by local government and concurrence by counties through legislative oversight. For further clarification by Transportation stafr, Florida Statutes provide a distribution formula to provide a "Fair Share" of state and fedcral transportation funds to thc Districts and to the counties. This formula is known as the "Statutory Formula" and is 50 percent based on population and 50 percent based on gas tax as a por1ion of the state's population and gas tax collections. However, the statutes provide that certain funding (i.e. Interstate Construction) be allocated by needs assessment rather than the fonnula focus the funding in specific areas to cover high-cost statewide needs. .- 6 Agenda Item NO.1 OC October 28, 2008 Page 7 of 106 The Florida Department of Transportation (FDOT) has expanded the needs assessmcnt to include the Strategic lntcrmodal System (SIS), thereby further reducing the funds allocated by a fair share formula. The net result is that Collier County has been identified as 0.43 percent of the SIS needs through 2035 and are receiving few dollars from the reduced formula funding. Either Section 339.135(4)(a)1, Florida Statutes needs to be modified to rcduce the level of state and federal transportation funding that is distributed by needs assessment rather than formula, or the counties/MPO's need further review and input on the needs assessments that are being used to distribute the monies outside of an cquitable share formula. This issue parallels the state's fight to seek an equitable share Irate of return of the transportation funds sent to Washington. We need to demand that whilc statcwide or rcgional necds arc addresscd, sufficient returns are realized by each county to meet thcir needs. . Transportation Funding Tied to Seat Belt Use - During the 2008 Legislative Session HB 11 /SB 94 Safety Belt Law Enforcement was filed again in an effort to make Florida seatbelt enforcement a primary offense for drivers over the age of 18. The bills fell short in 2008 as they died on the floor calendar. Many of the same concerns surfaced again this year, primarily with the fcasibility to enforce the proposed law as a primary offense. Also during the 2008 Session, SB 1992 Highway Safety bill by Senator Baker passed and was signed by Governor Crist, Statute citation 316.614. This bill removed the exemption for seatbc1t usage for vehicles weighing over 5,000 pounds. By moving the exemption from 5,000 to 26,000 pounds, the new law captures most consumer pickup trucks, SUV's, and light trucks. According to the Department of Highway Safety, the weight exemption removal that did pass in the Baker bill last session, in conjunction with passage of a Safety Belt Law which has yet to happen, would clear the way to draw down the one- time federal funding of approximately $35 million. XI. Alligator Alley - Continue to oppose leasing of Alligator Alley to private entities. Recently in addition to Collier and Broward Boards of County Commissioners both passing Resolutions opposing the privatization of the Alley, they jointly signed a letter to the FDOT affirming their joint opposition and dccided also to join forces in a lawsuit against the state if they go forward with the plan to lease the Allcy to private interests. .....i...~. XII. Consultants Competitive Negotiation Act (CCNA) - Support legislative changes to CCI\'A that allow weighing multiple factors including qualifications and price before selecting the top firm and before commencing negotiations. The proposed change allows an altcrnative method with the first step still being to pre- qualify the top firms and the second stcp being getting price proposals from top firms that are pre-qualified. Amending thc CCNA gives local governments the ability to compare costs efficicnt1y with prices side by side from only the qualified finns, which 7 Agenda Item No. 10C October 28 2008 Page 8 of 106 also provides increased negotiation leverage on behalf of the taxpayer. The Collier County Purchasing Director has done extensive networking and outreach to his peers statewide and professional organizations as well as some legislators. Thus far he has received endorsements of the proposed CCNA legislation from the National Institute of Governmental Purchasing (NIGP), the Florida Association of Public Purchasing Officers (F APPO), the Florida Governmental Finance Officers Association (FGFOA), and numerous counties as a result of attending the F AC Conference in Clearwater in September. Thcre has been proposed a CCNA Policy Statement that will be part of the F AC 2009 Legislative Platform, as it was in 2008. ,- XIII. Growth Management & Real-time Concurrency - Support protecting the County's current transportation real-time concurrency program which is doing in Collier what it is designed to do. However, State Department of Community Affairs Secretary Tom Pelham said at the FAC Conference in September that he is recommending a mobility fees study in 2009 to be implemented in 2010 because according to Secretary Pelham, concurrency is not working. Yes, the issues of mobility fees and concurrency were discussed during the growth management debate last session. When Sen. Bennett filed Senate Bill 1966, also referred to as the "Economic Stimulus Act of 2008," County staff did an analysis that summarized: "No more real-time concurrency; forced into long-term concurrency.. . Roadway congestion becomes acceptable under this legislation; county may enter a period of inactive road construction analogous to 1990s and incur significant backlog." The proposed mobility fee study was in and out of the grov\lth management bill at several different points during the 2008 Legislative Session, but ultimately that growth management legislation fell apart in the final few days. XIV. Support Enforcement of Immigration Laws,..... County staff approached the Collier County Sheriffs Office who in turn has been responsive in working cooperatively with the BCC in addressing the issue of immigration and has proposed specific legislation pertaining to immigration law for the State of Florida. The Collier County Sheriffs Office legal counsel has two legislative recommendations they advise would be instrumental in helping protect the community and strengthen the County's stance on homeland security: . Changing the statutes defining ''felony'' and "misdemeanor" (F8 775.08) from the current language "...violation of Florida law" to "violation ofpublic law." This would allow for the arrest of a subject on immigration (or other federal offenses) based on the state's right as a sovereign and its related policing powers. Currently, the language limits state officials to crimes that are violation of Florida law...immigration, of course, is not a Florida Law. 111 the alternative, specific authority could be granted in F5 901 that would authorize state Peace Officers to arrest for immigration offenses without warrants based on Probable Cause. Tltis would allow deputies to make immigration arrests but would ,-" 8 ,A,qenda Item NO.1 OC , October 28, 2008 Page 9 of 1Q6 not allow for processing, transport, investigation, long-term detention, etc...simply the arrest and a call to ICE. . The second recommendation is in reference to the Florida Human Trafficking statute (FS 787.06). Currently, this statute makes it illegal to traffic persons with the knowledge or intent that those persons will be usedfor slavery or prostitution. We recommend that the law be changed to also punish those who receive compensation for trafficking individuals regardless if those trafficked persons are to be used for servitude. This would reflect the State of Florida's policing power to address the dangers involved in trafficking people regardless of what those people are going to be doing when they reach their destination. XV. Support Florida Governmental Utility Authority (FGUA) being under State Public Service Commission oversight (Commissioner Henning request) - FGUA was created by local agreement in accordance with Florida Statute 163.01 (7) (g) 1, which states: Notwithstanding any other provisions of this section, any separate legal entity created under this section, the membership of which is limited to municipalities and counties of the state, and which may include a special district in addition to a municipality or county or both, may acquire, own, construct, improve, operate, and manage public facilities, or finance facilities on behalf of any person, relating to a governmental function or purpose, including, but not limited to, wastewater facilities, water or alternative water supply facilities, and water reuse facilities, which may serve populations within or outside of the members of the entity. Notwithstanding s. 367.171 (7), any separatc legal cntity crcated under this paragraph is not subject to Public Service Commission jurisdiction. The separate legal entity may not provide utility services within the service arca of an existing utility system unless it has received the consent of the utility. (Statute attached) On February 27, 1996 the Board adopted Resolution No. 96-104, exercising the County's authority under Section 367.171 (1), Florida Statutes, to rescind any Florida Public Service Commission jurisdiction over privatc water and wastewater utilities within Collier County, thcreby assuming County jurisdiction over such private water and wastewater utilities. (Resolution attached) Additionally, an inter-local agreement bctween the FGUA and thc Collier County Water and Sewer District (BCC) dated April 11,2000 provides FGtJA with exclusivc consent to operate in the Golden Gate (City) service area. (See attached) ,......m.. An act of the Florida Legislature is what gave governments the ability to create an entity like FGUA, which currently includes only Collier and Lee counties. Citrus, Nassau, Polk and Sarasota counties were previously part of FGUA as welL. but those counties bought out thcir respective utilities. FGUA must have at least two counties to continue to exist. According to the FGUA Web site, the Board is made up of local government represcntatives from participating counties, for a total of three regular members and three alternates. Hovv'cver, per Rcsolution No. 99-169 (attached) signed by the BCC on March 9 Agenda Item NO.1 OC October 28. 2008 Page 10 of 106 9, 1999 there are no Collicr County representatives as members of the FGUA Board. In the BCe minutes of the March 9, 1999 meeting when the original inter-local agreement was approved, Commissioners affirmed they rctained rate oversight. (See attached) According to the Florida Public Service Commission (PSC) Web site, the PSC mission statement is "to facilitate the efficient provision of safe and reliable utility services at fair prices." During 2007 the PSC regulated five investor-owned electric companies, seven investor-owned natural gas utilities, and more than 160 investor-owncd water and/or wastewater utilities. The PSC also has regulatory authority over one rate-base-regulated telephone company and competitive market oversight for more than 1,250 telecommunications companies in the State of Florida. Whenever a jurisdictional rate-base-regulated gas, electric, telephone, water or wastewater company wants to change its rates, it must receive permission from the PSC. The PSC then investigates its request and sets new rate levels if thc requcst is valid. The PSC has the responsibility to set rates that are fair, just and reasonable. It is also required to set rates to allow utility investors an opportunity to earn a reasonable return on their investment. (See attached.) In 2003, the Florida Legislature passed SB 140 but it was vetoed by then-Governor Jeb Bush. The bill and accompanying Senate staff analysis contained language regarding PSC oversight and rate adjustments. (See attached.) Staff defers to the County Attorney's Office for specific legal and statutory requirements to move the FGlJA under Public Servicc Commission oversight if that is the course the BCC decides to pursue. FISCAL IMPACT: There is no immediate fiscal impact associated with this executive smnmary. GROWTH MANAGEMENT IMPACT: There is no immediate growth management impact associated with this executive summary. LEGAL CONSIDERATIONS: RECOMMENDATION: That the Board of County Commissioners approves the proposed list of Collier County 2009 State Legislative Priorities which then will be discussed next at a joint Board of County Commissioncrs and Collier County Legislative Delegation Pre 2009 Legislative Session Workshop scheduled on November 14,2008. Prepared by Debbie Wight, Assistant to the County Manager - 10 Page 1 of I Agenda Item NO.1 DC October 28, 2008 Page 11 of 106 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 10C Meeting Date: Recommendation to review and approve the proposed Collier County 2009 State Legislative Priorities which then will be discussed next at a JOint Board of County Commissioners and Collier County Legisiatlve Deiegatlon Pre-2009 Legislative Session Workshop scheduled on November 14. 2008 (Debbie Wight, Assistant to the County Manager) 10/28/20089:0000 AM Approved By ScottR. Teach Assistant County Attorney Date County Attorney County Attorney Office 10122/2008 2:47 PM Approved By James V. Mudd County Manager Date Board of County Commissioners County Manager's Office 10/22/2008 3:20 PM .---. file://C':\Arren08Test\Fxn01i\ 11 S-Ortohero/'i,?n?R %'O'>nnR\ 1 n o/;,?nrOI ;NTyo/'"nM AN ,<\.n 1 nn?nnnR Agenda Item ~~o. 10C October 28,2008 Page 12 of 106 Memorandum To: Marcy Krumbine, Director Housing and Human Services From: Terri Daniels, Accounting Supervisor Housing and Human Services Date: October 20, 2008 Subject: AHCA - Medicaid Nursing Home Rate Increase Please accept the memo as a response to the anticipated increase in the AHCA Medicaid Nursing Home County contribution. As was stated in the information received from the County Manager's Office, AHCA is seeking to increase the County's monthly contribution toward Medicaid Nursing Home from $55 to $202 per month for each Medicaid eligible Collier County resident admitted into a Nursing Home facility. In FY 08 Collier County contributed towards the cost for care for an average of 275 participants. In an effort to reduce costs, fiscal staff ensures that all participants listed on the AHCA invoices have a Collier County address. If residency for Collier County cannot be verified, the expense is disallowed on the invoice. However, AHCA will attempt to make every effort to confirm the address. Once AHCA provides County staff with an official certificate of residency verifying the participants Collier address, AHCA will "re-bill" the County for services retroactively. This can often result in additional expenses several months down the line. Many of the re-bills for FY08 extend as far back at 2005. However, there are many times AHCA is unable to verify the address, thus resulting in a savings for the County. Below is a table of the estimated impact for FY09 based on the increased rate. A unit of service is defined as one month of service for a participant in the facility. Also included in the table are "re-bills that were included for the year. FY08 was an unusually high year for re-bills. We do not have the data to substantiate whether the re-bills will continue at this level; therefore a liberal forecast is being provided 3,300 FY08 Actual Cost $181,500 FY09 Antici ated $666,600 Avg. Persons Per Month 275 Number of Units **Re-BiIIs** Number of Units FY08 Actual FY09 Impact to FY09 # of participants Cost Anticipated Budget 145 1,872 $102,960 $378,144 ($275,184) Total Impact 5,172 $284,460 $1,044,744 ($760,284) Agenda R~~rJoof OC October 28, 2008 Page 13 of i 06 wight_d From: Heather Wildermuth [hwildermuth@fl-counties.com] Sent: Thursday, October 16, 20081:17 PM To: facseemembers@lists.facsse.org Subject: AHCA's proposed cuts would hit contractors, counties Again this year AHCA has suggested increasing the County's share of the state's Medicaid cost for nursing homes. This year's suggestion is to increase our share from $55 a month per person to $202 per person (last year their suggestion was $189). See below: AHCA's proposed cuts would hit contractors, counties 10/16/2008 @ Florida Health News It's white-knuckle time in Tallahassee, as Gov. Charlie Crist's budget team looks through lists from state agencies of proposed savings that could be made in January to save up to 10 percent in spending, if necessary. For an overview of proposed cuts across government, see Bill Cotterell's story in the Eprt Myers News-Pre~~. For cuts specific, to health agencies, read on. The Agency for Health Care Administration proposed the following cuts, in order of priority: --An end to Senior Care, a nursing-home diversion pilot program. AHCA already announced an end to this in August, saying other programs have sprung up to make it unnecessary: $521,915. --Imposing penalties on nursing-home diversion contractors when their Medicaid clients decide to go into nursing homes, after all. In such cases, the contractors are being overpaid and have no incentive to find alternatives to nursing home care that would meet clients' needs, AHCA says. Savings: over $9 million. --Limit payment for certain mental-health and drug-abuses services to young people in state care to six days a week instead of seven. Savings: $4.3 million. --An increase in the amount counties would have to pay when their residents go into nursing homes; such fees are now capped at $55 a month per person, which would rise to $202 per person. The fees have not been increased since 1970; thus county contributions that began at more than 10 percent of the cost are now 1.5 percent. Savings: $65 million. --Elimination of 12 nurses from field offices who serve as quality of care monitors and rapid 10/21/2008 Agenda ft~ ~o?~ &c October 28, 2008 Page 14 of 1 06 response team members. Savings: $874,805 --Combining an adult day-care program with the Aged and Disabled Adult program, where such services are provided. Savings: $1.9 million. --Elimination of chiropractic services as a covered Medicaid benefit. Savings: $947,481. --Elimination of podiatry services as a covered benefit. Savings: $2.5 million. -Cutting off coverage of children under Medicaid at 18, removing coverage for 7,764 persons ages 19 and 20. Savings: $3 million. The rest of AHCA's proposed cuts can be found here. Proposed cuts from the Department of Health will be posted later today. 10/21/2008 Agenda Item No 1 DC October 28. 2008 Collier County Sheriff's.t Criminal Alien Task Force An OvelView of the 287(g) Program: Strategy, Outcomes and Benefits Sheriff Don Hunter CA TF Back>::;;!)!, " ..~,; !,,'~"~lY\: ~. ..... ' ." .:' ,,' -::: - ., " In January 2007, the CCSO determin~d~~~/~;,;, quarter of the jail population was conip'ri$~(l;Q~~. illegally-present foreign nationals. '<;,(..;:'.~4;'[; This was costing Collier County more than $9 million per year. -This does not include costs for judges, juries, prosecutors, public defenders, court costs, investigations, victim services, victim compensation, victim medical costs, etc. "/ l1!'" :~ '1 ~~~ ~~~ It was also determined that approximately 400k of total felony warrants and 600/0 of murder warrants were for illegally-present foreign nationals. Steps to 287(g) f'a;~"I)' .' "~/-<~~i{~- · Memorandum of Agreement ....j. " ...........".'.',.. - Section 287(g) of the INA requires a written MOAbe.:qr.. .' ...... betwe~n DH~ and ~qSO. Thi.s defines the pl;!rp()s~I,',>::;,.k'~","i4"i~~j'\':',i4; authonty, polley, training, required ICE supervlslonandlen9-!n;;>i,'("',' of agreement. '" "< ..'.... ." ; - CCSO entered into a MOA with ICE in June 2007 · Inspection of facility - CCSO Jail · Training of staff - members must attend an intensive month-long ICE training program - In September 2007, 27 CCSO members graduated - In August 2008, another 7 CCSO members graduated · From the 287(g) authority, the Sheriff's Office developed the Criminal Alien Task Force (CA TF) r",~'- ........_,,'., . Agenda Item No.1 OC October 28, 2008 CA TF straf, · CCSO designated members fromrv~t'I<? disciplines throughout the Agency t()):t~""<r" ICE training and certification '. :",;'~:;:i':':~2i;~~ · Members function under the Authority and direction provided by the MOA · Strategy outlines key concepts such as operational flexibility and clear understanding and communication Agency-wide and with ICE ; . ""If . _,~__~ CA TF Comp~:c:' J 11 'Ii ~ J ffi.' " J i J,:Ium~q I' .' ~ I ... if ',.,. " " 'l" i ~Srrfugglirilgl i I 'If " .\':U' >1 't~' t 'k ,if nl V'. ., P'" 'jl; +/ j A ~ f J/,." '.. , '" f!' It 'If' .j .,SpeclaIJ~ ~ "', f 5nr ..f- ,J.40.. +" t } , rpr:Cell,l~n~' , . 11 < r....Ji Ii- l. .~. 'J' 1/ '.' ea"rT}( l ,~ ' . '. "l! '/i' "J! f .".!,. j. :: t~[Jri~er'~ ~idenStd~ i' ), i:lrlwes'igal$>~?J( \1 ~; if ,". -!If ! " f' , ~\_~"o.-'~'~'.'''' \ ~\ / I 'It, ntellMenteA / ,I, ~. ~ r :il 'I~' 1 ! ~ I [1Vi~~tl~~~G)r,. rf ....~'.. ", .;.t.:':-. "........ ..l..:t;., . / // -- " JffQ~!tiY~'~ ~ , /\'Y~r~apt~, ~ i 6ureall r ,~ p. '~.,l'\ 'F, ~ r ~.'r.Ctimtnal/'Vf.. 1. r ;~J 1: ' 't. 1; Ii. ii ,~ ~'I n "~s~garC?rS; I ..,ft'j.fi~ I Agenda Item No. 10e October 28.2008 Page 20 ot106 Corrections Component and Process · CA TF members initiate contact with newly arrested and/or already detained inmates to determine legal status in the U.S. · Fingerprints and identification documents are used to search several databases, including the ICE Identification System · Subjects qualifying for detainers enter the detention and removal process · A deportation file (including arrest report, criminal history, detain order, etc) is sent to ICE · Upon final order from a Federal Immigration Judge, deportation orders are processed · Subject is removed from the country once all sentences have been served Jail Activity anqg~,,~', October 1, 2007 - Se tern CATF conduced a total of 4,914 inmate inteNk:t ':: ;,'.: ;/;,,:,cf.,Hi. determine legal status. Of those, nearly 70%W~f~, present foreign nationals " . Overstay LPR 2% EWI 57% Detainers Placed No. Entry without Inspection (EWI) 444 Re-entry 16% Final Orders A^^ 100 Re-entries 122 Legal Permanent Resident 28 Overstays (expired VISAs) 16 . Asylum 1 .~#>_,'t 'c" J:~lDetainers Placed 777 ...>;......i-..._'-',~~....:._,;.., ",,:,-..q '.'.. ,,,;.'. Jail Activity and.Q,:, October 1, 2007 - SePt.~:~'~'i":! Status of Detainees No. Removed from U,S. 438 Federal Custody 11% In CCSO Custody 178 ICE or U.S. Marshal Custody 87 Transfer to Other Facility 53 Posted Immigration Bond 12 Case Terminated 8 Total Cases 176 Note: two detainers placed on one individual for total of 777 cases. J ~ ~. )'~ \? Removed 56% t:'~~I"Criminal History - The total number of arrest charges for criminal aliens a.ined for removal by the jail is 5,067. This is an average of 6.5 arrest charges '"Ii.' !'\i.i" 1.1 felony and 4.8 misdemeanor arrest charges per criminal alien. ~''''A\I.;,.;..\_.''"' Agenda Item No, 1 DC October 28, 2008 ," .,......."'-.... , _.'~ ::;\,-/i- Jail Populati6~);~;; ~ ,,,; .-"~'-' :' :;r.~;'J?~i;;: , "'" ..:,.>.t/i Since program implementation in October 2827"',,.. decreased. When comparing levels to the sam~:rtiR, seen as much as 11-14 % reductions in recentmontn Average Daily Jail Population 2007-2008, Monthly Comparison 1,300 1 ,250 / 1,200 /' 1 ,150 /' 1,100 1,050 / 1,000 Jan 1,198 - -- 1,159 Feb Mar Apr I May Jun Jul Aug Sep ! i -- ------ ----- --'---.---- , 1,215 1,209 ! 1,209 1,245 1,282 1,271 1,263 -- .. - , - - - - -- - 1,202 1,192 1,214 1,170 1,107 1,099 1,128 - - ._----. _..,_m. -- -'----"- 1 ,209 1,180 Law Enforcemen~;,.C' · Phase 1: CA TF members identify violentcrimi(l'~.,.,,,., including gang members, violent felony offenderS;t':c~'..< criminals and sexual predators. The primarygO<;lki~<:"~Q violent criminal aliens representing the greatest thre~t:" residents in Collier County. ," , ", · Phase 2: CA TF members identify other felony criminal aliens, including those charged with identify theft, narcotics and fraud. · Phase 3: CA TF members concentrate on lower level crime, such as DUI and driving without a license. In addition, the CATF educates the community, particularly assisting local employers to assure they are hiring authorized workers. · In all phases, no arrest is made until the subject is approved by ICE. Removing the most serious and violent offenders, as outlined in Phase I, will always remain a priority. Investigations - Ph@~:;' CA F investigations section has apprehended andcjet~Ul.: violent, felony career criminals who otherwise wouldnotlja. identified. For example: .'" ..' Subject with multiple prior arrests for robbery, burglary, drug/cocaine: an firearm charges was apprehended by CATF and charged federally. He used a false birth certificate to obtain US 10, including a passport and driver's license. - Subject was previously arrested on multiple occasions for molesting children. He was apprehended by CA TF investigations before he could reoffend. - Subject had been previously deported and had a warrant in another state for rape of a child with a firearm. He is suspected of murdering his eight- month-old daughter and has been arrested by CA TF on immigration charges. - Subject is a documented MS-13 gang member previously deported from another state after a gang-related shooting. He traveled to Collier County and has been arrested and detained by CA TF on immigration charges. I nvesti ga ti 0 nsActivi!~!: October 30, 2007 -Oi~t . -::'~~'H';'"f'~ >. Detamed 57% CA TF Investigations has conducted Current .' 236 preliminary investigations. To 14% date, 169 have proceeded into formal investigations. Status of Detainees No. Detained 96 Approved 42 Current investigation 24 Appro-..ed 25% Pendina ICE Approval 7 Total Investigations 169 Prior Criminal History - The total number of prior arrest charges for :.;-;q~iminal aliens formally investigated by CATF is 1,391. This is an average of 8.;~arrest charges each - 2.7 felony and 5.5 misdemeanor arrest ~. ':arg~s per criminal alien. .' '~'-"~'."" The CA TF has identified and interviewed aliens from more than 50 countries, including: Albania Costa Rica Iran Argentina Cuba Israel Russia Australia Czech Republic Jamaica Scotland Bahamas Dominican Republic Jordan Slovakia Bangladesh Ecuador Kazakhstan South ,A.frica Belize EI Salvador Mexico St. Lucia Bolivia England Nicaragua Thailand Brazil Germany Nigeria Trindad & Tobago Bulgaria Guatemala Panama Turkey Canada Haiti Peru Turks & Caicos Chile Honduras Philippines Uruguay China Hungary Poland Venezuela Colombia India Romania Vietnam CA TF Bene · Promotes community safety · Reduces jail overcrowding · Reduces victimization · Improves intelligence gathering and identification · Provides necessary resources and support to pursue criminal investigations · Provides cost savings ;'J$ff'l~1t1i~'; ~,.. :::s." _.' u' r:: o U !:c r~'-' ~ ,::!cn",a it"'m "J r .......1 I i' 0 1 nr :.Jctcber 28 '')Quv Paoe ~)q , L ?~ ~ _ ,. of 1 U'o en en (]) C/) s..... (l.) ~ (j) C <( -c c CO c o -- +-' (j) Q) :::J a . Statutes & Constitution :View Statutes :->2008->ChOI63->Section 01 : flsenate.gov AgendcPl:lg~ Ntlf1l6t October 28, 2008 Page 30 of 106 Select Year: l~o.~.= ?l;.....' .. ~ The 2008 Florida Statutes Title XI COUNTY ORGANIZATION AND INTERGOVERNMENTAL RELATIONS Chapter 163 INTERGOVERNMENTAL PROGRAMS View Entire Chapter 163.01 Florida Interlocal Cooperation Act of 1969.-- (1) This section shall be known and may be cited as the "Florida Inter local Cooperation Act of 1969." (2) It is the purpose of this section to permit local governmental units to make the most efficient use of their powers by enabling them to cooperate with other localities on a basis of mutual advantage and thereby to provide services and facilities in a manner and pursuant to forms of governmental organization that will accord best with geographic, economic, population, and other factors influencing the needs and development of local communities. (3) As used in this section: (a) "Interlocal agreement" means an agreement entered into pursuant to this section. (b) "Public agency" means a political subdivision, agency, or officer of this state or of any state of the United States, including, but not limited to, state government, county, city, school district, single and multipurpose special district, single and multipurpose public authority, metropolitan or consolidated government, a separate legal entity or administrative entity created under subsection (7), an independently elected county officer, any agency of the United States Government, a federally recognized Native American tribe, and any similar entity of any other state of the United States. (c) "State" means a state of the United States. (d) "Electric project" means: 1. Any plant, works, system, facilities, and real property and personal property of any nature whatsoever, together with all parts thereof and appurtenances thereto, which is located within or without the state and which is used or useful in the generation, production, transmission, purchase, sale, exchange, or interchange of electric capaCity and energy, including facilities and property for the acquisition, extraction, conversion, transportation, storage, reprocessing, or disposal of fuel and other materials of any kind for any such purposes. 2. Any interest in, or right to, the use, services, output, or capacity of any such plant, works, system, or facilities. 3. Any study to determine the feasibility or costs of any of the foregoing, including, but not limited to, engineering, legal, financial, and other services necessary or appropriate to determine the legality and financial and engineering feasibility of any project referred to in subparagraph 1. or subparagraph 2. (e) "Person" means: 1. Any natural person; http://www.flsenate.gov/Statutes/index.cfm ?p=2&App _ mode=Display _ Statute&Search _'" 10/20/2008 Statutes & Constitution :View Statutes :->2008->Ch0163->Section 01 : flsenate.gov Agendffigfflt\lsQ8c October 28 2008 Page 31 of 106 2. The United States; any state; any municipality, political subdivision, or municipal corporation created by or pursuant to the laws of the United States or any state; or any board, corporation, or other entity or body declared by or pursuant to the laws of the United States or any state to be a department, agency, or instrumentality thereof; 3. Any corporation, not,for-profit corporation, firm, partnership, cooperative association, electric cooperative, or business trust of any nature whatsoever which is organized and existing under the laws of the United States or any state; or 4. Any foreign country; any political subdivision or governmental unit of a foreign country; or any corporation, not,for'profit corporation, firm, partnership, cooperative association, electric cooperative, or business trust of any nature whatsoever which is organized and existing under the laws of a foreign country or of a political subdivision or governmental unit thereof. (f) "Electric utility" has the same meaning as in s. 361.11 (2). (g) "Foreign public utility" means any person whose principal location or principal place of business is not located within this state; who owns, maintains, or operates facilities for the generation, transmission, or distribution of electrical energy; and who supplies electricity to retail or wholesale customers, or both, on a continuous, reliable, and dependable basis. "Foreign public utility" also means any affiliate or subsidiary of such person, the business of which is limited to the generation or transmission, or both, of electrical energy and activities reasonably incidental thereto. (h) "Local government liability pool" means a reciprocal insurer as defined in s. Q29.021 or any self-insurance program created pursuant to s. 768.28(16), formed and controlled by counties or municipalities of this state to provide liability insurance coverage for counties, municipalities, or other public agencies of this state, which pool may contract with other parties for the purpose of providing claims administration, processing, accounting, and other administrative facilities. (4) A public agency of this state may exercise jointly with any other public agency of the state, of any other state, or of the United States Government any power, privilege, or authority which such agencies share in common and which each might exercise separately. (5) A joint exercise of power pursuant to this section shall be made by contract in the form of an interlocal agreement, which may provide for: (a) The purpose of such interlocal agreement or the power to be exercised and the method by which the purpose will be accomplished or the manner in which the power will be exercised. (b) The duration of the interlocal agreement and the method by which it may be rescinded or terminated by any participating public agency prior to the stated date of termination. (c) The precise organization, composition, and nature of any separate legal or administrative entity created thereby with the powers designated thereto, if such entity may be legally created. (d) The manner in which the parties to an interlocal agreement will provide from their treasuries the financial support for the purpose set forth in the interlocal agreement; payments of public funds that may be made to defray the cost of such purpose; advances of public funds that may be made for the purposes set forth in the interlocal agreements and repayment thereof; and the personnel, equipment, or property of one or more of the parties to the agreement that may be used in lieu of other contributions or advances. (e) The manner in which funds may be paid to and disbursed by any separate legal or administrative entity created pursuant to the interlocal agreement. http://wwv.,'.flsenate.gov/Statutes/index.cfm ?p=2&App _ mode=Disp1ay _ Statute&Search _".. 10/20/2008 Statutes & Constitution :View Statutes :->2008->Ch0163->Section 01 : flsenate.gov Agendjfl:~m~8f Mt October 28, 2008 Page 32 of 106 (f) A method or formula for equitably providing for and allocating and financing the capital and operating costs, including payments to reserve funds authorized by law and payments of principal and interest on obligations. The method or formula shall be established by the participating parties to the interlocal agreement on a ratio of full valuation of real property, on the basis of the amount of services rendered or to be rendered or benefits received or conferred or to be received or conferred, or on any other equitable basis, including the levying of taxes or assessments to pay such costs on the entire area serviced by the parties to the interlocal agreement, subject to such Limitations as may be contained in the constitution and statutes of this state. (g) The manner of employing, engaging, compensating, transferring, or discharging necessary personnel, subject to the provisions of applicable civil service and merit systems. (h) The fixing and collecting of charges, rates, rents, or fees, where appropriate, and the making and promulgation of necessary rules and regulations and their enforcement by or with the assistance of the participating parties to the interlocal agreement. (i) The manner in which purchases shall be made and contracts entered into. (j) The acquisition, ownership, custody, operation, maintenance, lease, or sale of real or personal property. (k) The disposition, diversion, or distribution of any property acquired through the execution of such interlocal agreement. (I) The manner in which, after the completion of the purpose of the interlocal agreement, any surplus money shall be returned in proportion to the contributions made by the participating parties. (m) The acceptance of gifts, grants, assistance funds, or bequests. (n) The making of claims for federal or state aid payable to the individual or several participants on account of the execution of the interlocal agreement. (0) The manner of responding for any liabilities that might be incurred through performance of the interlocal agreement and insuring against any such liability. (p) The adjudication of disputes or disagreements, the effects of failure of participating parties to pay their shares of the costs and expenses, and the rights of the other participants in such cases. (q) The manner in which strict accountability of all funds shall be provided for and the manner in which reports, including an annual independent audit, of all receipts and disbursements shall be prepared and presented to each participating party to the interlocal agreement. (r) Any other necessary and proper matters agreed upon by the participating publiC agencies. (6) An interlocal agreement may provide for one or more parties to the agreement to administer or execute the agreement. One or more parties to the agreement may agree to provide all or a part of the services set forth in the agreement in the manner provided in the agreement. The parties may provide for the mutual exchange of services without payment of any contribution other than such services. The parties may provide for the use or maintenance of facilities or equipment of another party on a cost, reimbursement basis. (7)(a) An interlocal agreement may provide for a separate legal or administrative entity to administer or execute the agreement, which may be a commission, board, or council constituted pursuant to the agreement. http://v.'WW.flsenate.gov/Statutes/index.cfm?p=2&App _ mode=Display _ Statute&Search _'" 1 0/20/2008 Statutes & Constitution: View Statutes :-> 2008->ChO 163->Section 0 I : flsenate.gov .A.qendf~~R.1i3( 18c ~ October 28. 2008 Page 33 of 106 (b) A separate legal or administrative entity created by an interlocal agreement shall possess the common power specified in the agreement and may exercise it in the manner or according to the method provided in the agreement. The entity may, in addition to its other powers, be authorized in its own name to make and enter into contracts; to employ agencies or employees; to acquire, construct, manage, maintain, or operate buildings, works, or improvements; to acquire, hold, or dispose of property; and to incur debts, liabilities, or obligations which do not constitute the debts, liabilities, or obligations of any of the parties to the agreement. (c) No separate legal or administrative entity created by an interlocal agreement shall possess the power or authority to levy any type of tax within the boundaries of any governmental unit participating in the interlocal agreement, to issue any type of bond in its own name, or in any way to obligate financially a governmental unit participating in the interlocal agreement. However, any separate legal entity, the membership of which consists only of electric utilities as defined in s. 361.11 (2) and which is created for the purpose of exercising the powers granted by part II of chapter 361, the Joint Power Act, may, for the purpose of financing or refinancing the costs of an electric project, exercise all powers in connection with the authorization, issuance, and sale of bonds as are conferred by parts I, II, and III of chapter 159 or part II of chapter 166, or both. Any such entity may also issue bond anticipation notes, as provided by s. 215.431, in connection with the authorization, issuance, and sale of such bonds. All of the privileges, benefits, powers, and terms of parts I, II, and III of chapter 159 and part II of chapter 166, notwithstanding any limitations provided above, shall be fully applicable to such entity. In addition, the governing body of such legal entity may also authorize bonds to be issued and sold from time to time and delegate, to such officer, official, or agent of such legal entity as the governing body of such legal entity shall select, the power to determine the time; manner of sale, public or private; maturities; rate or rates of interest, which may be fixed or may vary at such time or times and in accordance with a specified formula or method of determination; and other terms and conditions as may be deemed appropriate by the officer, offidal, or agent so designated by the governing body of such legal entity. However, the amounts and maturities of such bonds and the interest rate or rates on such bonds shall be within the limits prescribed by the governing body of such legal entity in its resolution delegating to such officer, official, or agent the power to authorize the issuance and sale of such bonds. Bonds issued pursuant to this section may be validated as provided in chapter 75 and paragraph (15)(f). However, the complaint in any action to validate such bonds shall be filed only in the Circuit Court for Leon County. The notice required to be published by s. Zi.Q6 shall be published only in Leon County, and the complaint and order of the circuit court shall be served only on the State Attorney of the Second Judicial Circuit and on the state attorney of each circuit in which a public agency participating in the electric project lies. Notice of such proceedings shall be published in the manner and at the time required by s. 75.06 in Leon County and in each county in which any portion of any public agency participating in the electric project lies. (d) Notwithstanding the provisions of paragraph (c), any separate legal entity created pursuant to this section and controlled by the municipalities or counties of this state or by one or more municipality and one or more county of this state, the membership of which consists or is to consist of municipalities only, counties only, or one or more municipality and one or more county, may, for the purpose of financing or refinancing any capital projects, exercise all powers in connection with the authorization, issuance, and sale of bonds. Notwithstanding any limitations provided in this section, all of the privileges, benefits, powers, and terms of part I of chapter 125, part II of chapter 166, and part I of chapter 159 shall be fully applicable to such entity. Bonds issued by such entity shall be deemed issued on behalf of the counties or municipalities which enter into loan agreements with such entity as provided in this paragraph. Any loan agreement executed pursuant to a program of such entity shall be governed by the provisions of part I of chapter 159 or, in the case of counties, part I of chapter 125, or in the case of municipalities and charter counties, part II of chapter 166. Proceeds of bonds issued by such entity may be loaned to counties or municipalities of this state or a combination of municipalities and counties, whether or not such counties or municipalities are also members of the entity issuing the bonds. The issuance of bonds by such entity to fund a loan program to make loans to municipalities or counties or a combination of municipalities and counties with one another for capital projects to be identified subsequent to the issuance of the bonds to fund such loan programs is deemed to be a paramount public purpose. Any http://www.flsenate.gov/Statutes/index.cfm ?p=2&App _ mode=Display _ Statute & Search _'" 1 0/20/2008 Statutes & Constitution: View Statutes :-> 2008->ChO 163->Section 01 : flsenate.gov AgendcP~gffi~@f i6t October 28. 2008 Page 34 of 106 entity so created may also issue bond anticipation notes, as provided by s. 215.431, in connection with the authorization, issuance, and sale of such bonds. In addition, the governing body of such legal entity may also authorize bonds to be issued and sold from time to time and may delegate, to such officer, official, or agent of such legal entity as the governing body of such legal entity may select, the power to determine the time; manner of sale, public or private; maturities; rate or rates of interest, which may be fixed or may vary at such time or times and in accordance with a specified formula or method of determination; and other terms and conditions as may be deemed appropriate by the officer, official, or agent so designated by the governing body of such legal entity. However, the amounts and maturities of such bonds and the interest rate or rates of such bonds shall be within the limits prescribed by the governing body of such legal entity and its resolution delegating to such officer, official, or agent the power to authorize the issuance and sale of such bonds. A local government self-insurance fund established under this section may financially guarantee bonds or bond anticipation notes issued or loans made under this subsection. Bonds issued pursuant to this paragraph may be validated as provided in chapter 75. The complaint in any action to validate such bonds shall be filed only in the Circuit Court for Leon County. The notice required to be published by s. Z_~,06 shall be published only in Leon County, and the complaint and order of the circuit court shall be served only on the State Attorney of the Second Judicial Circuit and on the state attorney of each circuit in each county where the public agencies which were initially a party to the agreement are located. Notice of such proceedings shall be published in the manner and the time required by s. 75.06 in Leon County and in each county where the public agencies which were initially a party to the agreement are located. Obligations of any county or municipality pursuant to a loan agreement as described in this paragraph may be validated as provided in chapter 75. (e)1. Notwithstanding the provisions of paragraph (c), any separate legal entity, created pursuant to the provisions of this section and controlled by counties or municipalities of this state, the membership of which consists or is to consist only of public agencies of this state, may, for the purpose of financing the provision or acquisition of liability or property coverage contracts for or from one or more local government liability or property pools to provide liability or property coverage for counties, municipalities, or other public agencies of this state, exercise all powers in connection with the authorization, issuance, and sale of bonds. All of the privileges, benefits, powers, and terms of s. 125.Q1 relating to counties and s. 166.021 relating to municipalities shall be fully applicable to such entity and such entity shall be considered a unit of local government for all of the privileges, benefits, powers, and terms of part I of chapter 159. Bonds issued by such entity shall be deemed issued on behalf of counties, municipalities, or public agencies which enter into loan agreements with such entity as provided in this paragraph. Proceeds of bonds issued by such entity may be loaned to counties, municipalities, or other public agencies of this state, whether or not such counties, municipalities, or other public agencies are also members of the entity issuing the bonds, and such counties, municipalities, or other public agencies may in turn deposit such loan proceeds with a separate local government liability or property pool for purposes of providing or acquiring liability or property coverage contracts. 2. Counties or municipalities of this state are authorized pursuant to this section, in addition to the authority provided by s. 125.01, part II of chapter 166, and other applicable law, to issue bonds for the purpose of acquiring liability coverage contracts from a local government liability pool. Any individual county or municipality may, by entering into interlocal agreements with other counties, municipalities, or public agencies of this state, issue bonds on behalf of itself and other counties, municipalities, or other public agencies, for purposes of acquiring a liability coverage contract or contracts from a local government liability pool. Counties, municipalities, or other public agencies are also authorized to enter into loan agreements with any entity created pursuant to subparagraph 1., or with any county or municipality issuing bonds pursuant to this subparagraph, for the purpose of obtaining bond proceeds with which to acquire liability coverage contracts from a local government liability pool. No county, municipality, or other public agency shall at any time have more than one loan agreement outstanding for the purpose of obtaining bond proceeds with which to acquire liability coverage contracts from a local government liability pool. Obligations of any county, municipality, or other public agency of this state pursuant to a loan agreement as described above may be validated as provided in chapter 75. Prior to the issuance of any bonds pursuant to subparagraph 1. or this subparagraph for the purpose of acquiring liability coverage http://www.flsenate.gov/Statutes/index.cfm?p=2&App _ mode=Display _ Statute&Search _'" 1 0/20/2008 Statutes & Constitution :View Statutes :->2008->ChOI 63->Section 01 : flsenate.gov Agendf!:lcgR-i~Jrgf 16t October 28,2008 Page 35 of 106 contracts from a local government liability pool, the reciprocal insurer or the manager of any self- insurance program shall demonstrate to the satisfaction of the Office of Insurance Regulation of the Financial Services Commission that excess liability coverage for counties, municipalities, or other public agencies is reasonably unobtainable in the amounts provided by such pool or that the liability coverage obtained through acquiring contracts from a local government liability pool, after taking into account costs of issuance of bonds and any other administrative fees, is less expensive to counties, municipalities, or special districts than similar commercial coverage then reasonably available. 3. Any entity created pursuant to this section or any county or municipality may also issue bond anticipation notes, as provided by s. 215.431, in connection with the authorization, issuance, and sale of such bonds. In addition, the governing body of such legal entity or the governing body of such county or municipality may also authorize bonds to be issued and sold from time to time and may delegate, to such officer, official, or agent of such legal entity as the governing body of such legal entity may select, the power to determine the time; manner of sale, public or private; maturities; rate or rates of interest, which may be fixed or may vary at such time or times and in accordance with a specified formula or method of determination; and other terms and conditions as may be deemed appropriate by the officer, official, or agent so designated by the governing body of such legal entity. However, the amounts and maturities of such bonds and the interest rate or rates of such bonds shall be within the limits prescribed by the governing body of such legal entity and its resolution delegating to such officer, official, or agent the power to authorize the issuance and sale of such bonds. Any series of bonds issued pursuant to this paragraph for liability coverage shall mature no later than 7 years following the date of issuance. A series of bonds issued pursuant to this paragraph for property coverage shall mature no later than 30 years following the date of issuance. 4. Bonds issued pursuant to subparagraph 1. may be validated as provided in chapter 75. The complaint in any action to validate such bonds shall be filed only in the Circuit Court for Leon County. The notice required to be published by s. 75.06 shall be published in Leon County and in each county which is an owner of the entity issuing the bonds, or in which a member of the entity is located, and the complaint and order of the circuit court shall be served only on the State Attorney of the Second Judicial Circuit and on the state attorney of each circuit in each county or municipality which is an owner of the entity issuing the bonds or in which a member of the entity is located. 5. Bonds issued pursuant to subparagraph 2. may be validated as provided in chapter 75. The complaint in any action to validate such bonds shall be filed in the circuit court of the county or municipality which will issue the bonds. The notice required to be published by s. ?~06 shall be published only in the county where the complaint is filed, and the complaint and order of the circuit court shall be served only on the state attorney of the circuit in the county or municipality which will issue the bonds. 6. The participation by any county, municipality, or other public agency of this state in a local government liability pool shall not be deemed a waiver of immunity to the extent of liability coverage, nor shall any contract entered regarding such a local government liability pool be required to contain any provision for waiver. (f) Notwithstanding anything to the contrary, any separate legal entity, created pursuant to the provisions of this section, wholly owned by the municipalities or counties of this state, the membership of which consists or is to consist only of municipalities or counties of this state, may exercise the right and power of eminent domain, including the procedural powers under chapters 73 and 74, if such right and power is granted to such entity by the interlocal agreement creating the entity. (g) 1. Notwithstanding any other provisions of this section, any separate legal entity created under this section, the membership of which is limited to municipalities and counties of the state, and which may include a special district in addition to a municipality or county or both, may acquire, http://wwv.'.flsenate.gov/Statutes/index.cfm?p=2&App_ mode= Display _ Statute& Search _'" 1 0/20/2008 Statutes & Constitution :View Statutes :->2008->Ch0163->Section 01 : flsenate.gov Agendj!t~m Nsf Me October 28, 2008 Page 36 of 106 own, construct, improve, operate, and manage public facilities, or finance facilities on behalf of any person, relating to a governmental function or purpose, including, but not limited to, wastewater facilities, water or alternative water supply facilities, and water reuse facilities, which may serve populations within or outside of the members of the entity. Notwithstanding s. 367.171 (7), any separate legal entity created under this paragraph is not subject to Public Service Commission jurisdiction. The separate legal entity may not provide utility services within the service area of an existing utility system unless it has received the consent of the utility. 2. For purposes of this paragraph, the term: a. "Host government" means the governing body of the county, if the largest number of equivalent residential connections currently served by a system of the utility is located in the unincorporated area, or the governing body of a municipality, if the largest number of equivalent residential connections currently served by a system of the utility is located within that municipality's boundaries. b. "Separate legal entity" means any entity created by interlocal agreement the membership of which is limited to two or more special districts, municipalities, or counties of the state, but which entity is legally separate and apart from any of its member governments. c. "System" means a water or wastewater facility or group of such facilities owned by one entity or affiliate entities. d. "Utility" means a water or wastewater utility and includes every person, separate legal entity, lessee, trustee, or receiver owning, operating, managing, or controlling a system, or proposing construction of a system, who is providing, or proposes to provide, water or wastewater service to the public for compensation. 3. A separate legal entity that seeks to acquire any utility shall notify the host government in writing by certified mail about the contemplated acquisition not less than 30 days before any proposed transfer of ownership, use, or possession of any utility assets by such separate legal entity. The potential acquisition notice shall be provided to the legislative head of the governing body of the host government and to its chief administrative officer and shall provide the name and address of a contact person for the separate legal entity and information identified in s. 367.071 (4) (a) concerning the contemplated acquisition. 4.a. Within 3D days following receipt of the notice, the host government may adopt a resolution to become a member of the separate legal entity, adopt a resolution to approve the utility acquisition, or adopt a resolution to prohibit the utility acquisition by the separate legal entity if the host government determines that the proposed acquisition is not in the public interest. A resolution adopted by the host government which prohibits the acquisition may include conditions that would make the proposal acceptable to the host government. b. If a host government adopts a membership resolution, the separate legal entity shall accept the host government as a member on the same basis as its existing members before any transfer of ownership, use, or possession of the utility or the utility facilities. If a host government adopts a resolution to approve the utility acquisition, the separate legal entity may complete the acquisition. If a host government adopts a prohibition resolution, the separate legal entity may not acquire the utility within that host government's territory without the specific consent of the host government by future resolution. If a host government does not adopt a prohibition resolution or an approval resolution, the separate legal entity may proceed to acquire the utility after the 3D-day notice period without further notice. 5. After the acquisition or construction of any utility systems by a separate legal entity created under this paragraph, revenues or any other income may not be transferred or paid to a member of a separate legal entity, or to any other special district, county, or municipality, from user fees or http://www .flsenate.gov/Statutes/index.cfm ?p=2&App _ mode=Display _ Statute&Search _'" 10/20/2008 Statutes & Constitution :View Statutes :->2008->ChOI63->Section 01 : flsenate.gov AgenGjftgm~~8f Me October 28.2008 Page 37 of 106 other charges or revenues generated from customers that are not physically located within the jurisdictional or service delivery boundaries of the member, special district, county, or municipality receiving the transfer or payment. Any transfer or payment to a member, special district, or other local government must be solely from user fees or other charges or revenues generated from customers that are physically located within the jurisdictional or service delivery boundaries of the member, special district, or local government receiving the transfer of payment. 6. This section is an alternative provision otherwise provided by law as authorized in s. 4, Art. VIII of the State Constitution for any transfer of power as a result of an acquisition of a utility by a separate legal entity from a municipality, county, or special district. 7. The entity may finance or refinance the acquisition, construction, expansion, and improvement of such facilities relating to a governmental function or purpose through the issuance of its bonds, notes, or other obligations under this section or as otherwise authorized by law. The entity has all the powers provided by the interlocal agreement under which it is created or which are necessary to finance, own, operate, or manage the public facility, including, without limitation, the power to establish rates, charges, and fees for products or services provided by it, the power to levy special assessments, the power to sell or finance all or a portion of such facility, and the power to contract with a public or private entity to manage and operate such facilities or to provide or receive facilities, services, or products. Except as may be limited by the interlocal agreement under which the entity is created, all of the privileges, benefits, powers, and terms of s. 125.01, relating to counties, and s. 166.021, relating to municipalities, are fully applicable to the entity. However, neither the entity nor any of its members on behalf of the entity may exercise the power of eminent domain over the facilities or property of any existing water or wastewater plant utility system, nor may the entity acquire title to any water or wastewater plant utility facilities, other facilities, or property which was acquired by the use of eminent domain after the effective date of this act. Bonds, notes, and other obligations issued by the entity are issued on behalf of the public agencies that are members of the entity. 8. Any entity created under this section may also issue bond anticipation notes in connection with the authorization, issuance, and sale of bonds. The bonds may be issued as serial bonds or as term bonds or both. Any entity may issue capital appreciation bonds or variable rate bonds. Any bonds, notes, or other obligations must be authorized by resolution of the governing body of the entity and bear the date or dates; mature at the time or times, not exceeding 40 years from their respective dates; bear interest at the rate or rates; be payable at the time or times; be in the denomination; be in the form; carry the registration privileges; be executed in the manner; be payable from the sources and in the medium or payment and at the place; and be subject to the terms of redemption, including redemption prior to maturity, as the resolution may provide. If any officer whose signature, or a facsimile of whose signature, appears on any bonds, notes, or other obligations ceases to be an officer before the delivery of the bonds, notes, or other obligations, the signature or facsimile is valid and sufficient for all purposes as if he or she had remained in office until the delivery. The bonds, notes, or other obligations may be sold at public or private sale for such price as the governing body of the entity shall determine. Pending preparation of the definitive bonds, the entity may issue interim certificates, which shall be exchanged for the definitive bonds. The bonds may be secured by a form of credit enhancement, if any, as the entity deems appropriate. The bonds may be secured by an indenture of trust or trust agreement. In addition, the governing body of the legal entity may delegate, to an officer, official, or agent of the legal entity as the governing body of the legal entity may select, the power to determine the time; manner of sale, public or private; maturities; rate of interest, which may be fixed or may vary at the time and in accordance with a specified formula or method of determination; and other terms and conditions as may be deemed appropriate by the officer, official, or agent so designated by the governing body of the legal entity. However, the amount and maturity of the bonds, notes, or other obligations and the interest rate of the bonds, notes, or other obligations must be within the limits prescribed by the governing body of the legal entity and its resolution delegating to an officer, official, or agent the power to authorize the issuance and sale of the bonds, notes, or other obligations. http://www.flsenate.gov/Statutes/index.cfm?p=2&App _ mode=Display _ Statute & Search _'" 1 0/20/2008 Statutes & Constitution :View Statutes :->2008->Ch0163->Section 01 : flsenate.gov Agendfftifn~~8fMt October 28,2008 Page 38 of 106 9. Bonds, notes, or other obligations issued under this paragraph may be validated as provided in chapter 75. The complaint in any action to validate the bonds, notes, or other obligations must be filed only in the Circuit Court for Leon County. The notice required to be published by s. 75.06 must be published in Leon County and in each county that is a member of the entity issuing the bonds, notes, or other obligations, or in which a member of the entity is located, and the complaint and order of the circuit court must be served only on the State Attorney of the Second Judicial Circuit and on the state attorney of each circuit in each county that is a member of the entity issuing the bonds, notes, or other obligations or in which a member of the entity is located. Section 75.04(2) does not apply to a complaint for validation brought by the legal entity. 10. The accomplishment of the authorized purposes of a legal entity created under this paragraph is in all respects for the benefit of the people of the state, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions. Since the legal entity will perform essential governmental functions in accomplishing its purposes, the legal entity is not required to pay any taxes or assessments of any kind whatsoever upon any property acquired or used by it for such purposes or upon any revenues at any time received by it. The bonds, notes, and other obligations of an entity, their transfer, and the income therefrom, including any profits made on the sale thereof, are at all times free from taxation of any kind by the state or by any political subdivision or other agency or instrumentality thereof. The exemption granted in this subparagraph is not applicable to any tax imposed by chapter 220 on interest, income, or profits on debt obligations owned by corporations. (h)1. Notwithstanding the provisions of paragraph (c), any separate legal entity consisting of an alliance, as defined in s. 395.106(2)(a), created pursuant to this paragraph and controlled by and whose members consist of eligible entities comprised of special districts created pursuant to a special act and having the authority to own or operate one or more hospitals licensed in this state or hospitals licensed in this state that are owned, operated, or funded by a county or municipality, for the purpose of providing property insurance coverage as defined in s. 395.106(2)(b), for such eligible entities, may exercise all powers under this subsection in connection with borrowing funds for such purposes, including, without limitation, the authorization, issuance, and sale of bonds, notes, or other obligations of indebtedness, Borrowed funds, including, but not limited to, bonds issued by such alliance shall be deemed issued on behalf of such eligible entities that enter into loan agreements with such separate legal entity as provided in this paragraph. 2. Any such separate legal entity shall have all the powers that are provided by the interlocal agreement under which the entity is created or that are necessary to finance, operate, or manage the alliance's property insurance coverage program. Proceeds of bonds, notes, or other obligations issued by such an entity may be loaned to anyone or more eligible entities. Such eligible entities are authorized to enter into loan agreements with any separate legal entity created pursuant to this paragraph for the purpose of obtaining moneys with which to finance property insurance coverage or claims. Obligations of any eligible entity pursuant to a loan agreement as described in this paragraph may be validated as provided in chapter 75. 3. Any bonds, notes, or other obligations to be issued or incurred by a separate legal entity created pursuant to this paragraph shall be authorized by resolution of the governing body of such entity and bear the date or dates; mature at the time or times, not exceeding 30 years from their respective dates; bear interest at the rate or rates, which may be fixed or vary at such time or times and in accordance with a specified formula or method of determination; be payable at the time or times; be in the denomination; be in the form; carry the registration privileges; be executed in the manner; be payable from the sources and in the medium of payment and at the place; and be subject to redemption, including redemption prior to maturity, as the resolution may provide. The bonds, notes, or other obligations may be sold at public or private sale for such price as the governing body of the separate legal entity shall determine. The bonds may be secured by such credit enhancement, if any, as the governing body of the separate legal entity deems appropriate. The bonds may be secured by an indenture of trust or trust agreement. In addition, the governing body of the separate legal entity may delegate, to such officer or official of such entity as the governing body may select, the power to determine the time; manner of sale, public http://www .flsenate. gov /Statutes/index.cfm ?p=2&App _ mode= Display _ Statute&Search _'" 1 0/20/2008 Statutes & Constitution :View Statutes :->2008->ChOI63->Section 01 : flsenate.gov !-'.gemPc!lg@n1,~~f i6t October 28. 2008 Page 39 of 106 or private; maturities; rate or rates of interest, which may be fixed or may vary at such time or times and in accordance with a specified formula or method of determination; and other terms and conditions as may be deemed appropriate by the officer or official so designated by the governing body of such separate legal entity. However, the amounts and maturities of such bonds, the interest rate or rates, and the purchase price of such bonds shall be within the limits prescribed by the governing body of such separate legal entity in its resolution delegating to such officer or official the power to authorize the issuance and sale of such bonds. 4. Bonds issued pursuant to this paragraph may be validated as provided in chapter 75. The complaint in any action to validate such bonds shall be filed only in the Circuit Court for Leon County. The notice required to be published by s. 75.06 shall be published in Leon County and in each county in which an eligible entity that is a member of an alliance is located. The complaint and order of the circuit court shall be served only on the State Attorney of the Second Judicial Circuit and on the state attorney of each circuit in each county in which an eligible entity receiving bond proceeds is located. 5. The accomplishment of the authorized purposes of a separate legal entity created under this paragraph is deemed in all respects for the benefit, increase of the commerce and prosperity, and improvement of the health and living conditions of the people of this state. Inasmuch as the separate legal entity performs essential public functions in accomplishing its purposes, the separate legal entity is not required to pay any taxes or assessments of any kind upon any property acquired or used by the entity for such purposes or upon any revenues at any time received by the entity. The bonds, notes, and other obligations of such separate legal entity, the transfer of and income from such bonds, notes, and other obligations, including any profits made on the sale of such bonds, notes, and other obligations, are at all times free from taxation of any kind of the state or by any political subdivision or other agency or instrumentality of the state. The exemption granted in this paragraph does not apply to any tax imposed by chapter 220 on interest, income, or profits on debt obligations owned by corporations. 6. The participation by any eligible entity in an alliance or a separate legal entity created pursuant to this paragraph may not be deemed a waiver of immunity to the extent of liability or any other coverage, and a contract entered regarding such alliance is not required to contain any provision for waiver. (8) If the purpose set forth in an interlocal agreement is the acquisition, construction, or operation of a revenue-producing facility, the agreement may provide for the repayment or return to the parties of all or any part of the contributions, payments, or advances made by the parties pursuant to subsection (5) and for payment to the parties of any sum derived from the revenues of such facility. Payments, repayments, or returns shall be made at any time and in the manner specified in the agreement and may be made at any time on or prior to the rescission or termination of the agreement or completion of the purposes of the agreement. (9)(a) All of the privileges and immunities from liability; exemptions from laws, ordinances, and rules; and pensions and relief, disability, workers' compensation, and other benefits which apply to the activity of officers, agents, or employees of any public agents or employees of any public agency when performing their respective functions within the territorial limits for their respective agencies shall apply to the same degree and extent to the performance of such functions and duties of such officers, agents, or employees extraterritorially under the provisions of any such interlocal agreement. (b) An interlocal agreement does not relieve a public agency of any obligation or responsibility imposed upon it by law except to the extent of actual and timely performance thereof by one or more of the parties to the agreement or any legal or administrative entity created by the agreement, in which case the performance may be offered in satisfaction of the obligation or responsibility , (c) All of the privileges and immunities from liability and exemptions from laws, ordinances, and http://www.flsenate.gov/Statutes/index.cfm?p=2&App _ mode=Display _ Statute&Search _'" 1 0/20/2008 Statutes & Constitution :View Statutes :->2008->ChOI63->Section 01 : flsenate.gov Agemfaag@~ N€}f 1l6t October 28, 2008 Page 40 of 106 rules which apply to the municipalities and counties of this state apply to the same degree and extent to any separate legal entity, created pursuant to the provisions of this section, wholly owned by the municipalities or counties of this state, the membership of which consists or is to consist only of municipalities or counties of this state, unless the interlocal agreement creating such entity provides to the contrary. All of the privileges and immunities from liability; exemptions from laws, ordinances, and rules; and pension and relief, disability, and worker's compensation, and other benefits which apply to the activity of officers, agents, employees, or employees of agents of counties and municipalities of this state which are parties to an interlocal agreement creating a separate legal entity pursuant to the provisions of this section shall apply to the same degree and extent to the officers, agents, or employees of such entity unless the interlocal agreement creating such entity provides to the contrary. (10)(a) A public agency entering into an interlocal agreement may appropriate funds and sell, give, or otherwise supply any party designated to operate the joint or cooperative undertaking such personnel, services, facilities, property, franchises, or funds thereof as may be within its legal power to furnish. (b) A public agency entering into an interlocal agreement may receive grants-in-aid or other assistance funds from the United States Government or this state for use in carrying out the purposes of the interlocal agreement. (11) Prior to its effectiveness, an interlocal agreement and subsequent amendments thereto shall be filed with the clerk of the circuit court of each county where a party to the agreement is located. However, if the parties to the agreement are located in multiple counties and the agreement under subsection (7) provides for a separate legal entity or administrative entity to administer the agreement, the interlocal agreement and any amendments thereto may be filed with the clerk of the circuit court in the county where the legal or administrative entity maintains its principal place of business. (12) Any public agency entering into an agreement pursuant to this section may appropriate funds and may sell, lease, give, or otherwise supply the administrative joint board or other legal or administrative entity created to operate the joint or cooperative undertaking by providing such personnel or services therefor as may be within its legal power to furnish. (13) The powers and authority granted by this section shall be in addition and supplemental to those granted by any other general, local, or special law. Nothing contained herein shall be deemed to interfere with the application of any other law. (14) This section is intended to authorize the entry into contracts for the performance of service functions of public agencies, but shall not be deemed to authorize the delegation of the constitutional or statutory duties of state, county, or city officers. (15) Notwithstanding any other provision of this section or of any other law except s. 3.(>1.14, any public agency of this state which is an electric utility, or any separate legal entity created pursuant to the provisions of this section, the membership of which consists only of electric utilities, and which exercises or proposes to exercise the powers granted by part II of chapter 361, the Joint Power Act, may exercise any or all of the following powers: (a) Any such public agency or legal entity, or both, may plan, finance, acquire, construct, reconstruct, own, lease, operate, maintain, repair, improve, extend, or otherwise participate jointly in one or more electric projects, which are proposed, existing, or under construction and which are located or to be located within or without this state, with anyone or more of the following: 1. Any such legal entity; http://www.flsenate.gov/Statutes/index.cfm?p=2&App _ mode=Display _ S tatute& Search _'" 1 0/20/2008 Statutes & Constitution :View Statutes :->2008->ChOI63->Section 01 : flsenate.gov ,A,;JenJ>~g@r1,~~@06t October 28. 2008 Page 41 of 106 2. One or more electric utilities; 3. One or more foreign public utilities; or 4. Any other person, if the right to full possession and to all of the use, services, output, and capacity of any such electric project during the original estimated useful life thereof is vested, subject to creditors' rights, in anyone or more of such legal entities, electric utilities, or foreign public utilities, or in any combination thereof. Any such public agency or legal entity, or both, may act as agent or designate one or more persons, whether or not participating in an electric project, to act as its agent in connection with the planning, design, engineering, licensing, acquisition, construction, completion, management, control, operation, maintenance, repair, renewal, addition, replacement, improvement, modification, insuring, decommissioning, cleanup, retirement, or disposal, or all of the foregoing, of such electric project or electric projects. (b)1. In any case in which any such public agency or legal entity, or both, participate in an electric project with anyone or more of the following: a. Any such legal entity; b. One or more electric utilities; c. One or more foreign public utilities; or d. Any other person, and if the right to full possession and to all of the use, services, output, and capacity of any such electric project during the original estimated useful life thereof is vested, subject to creditors' rights, in anyone or more of such legal entities, electric utilities, or foreign public utilities, or in any combination thereof, such public agency or legal entity, or both, may enter into an agreement or agreements with respect to such electric project with the other person or persons participating therein, and such legal entity may enter into an agreement or agreements with one or more public agencies who are parties to the interlocal agreement creating such legal entity. Any such agreement may be for such period, including, but not limited to, an unspecified period, and may contain such other terms, conditions, and provisions, consistent with the provisions of this section, as the parties thereto shall determine. In connection with entry into and performance pursuant to any such agreement, with the selection of any person or persons with which any such public agency or legal entity, or both, may enter into any such agreement, and with the selection of any electric project to which such agreement may relate, no such public agency or legal entity shall be required to comply with any general, local, or special statute, including, but not limited to, the provisions of s. 287.055, or with any charter provision of any public agency, which would otherwise require public bidding, competitive negotiation, or both. 2. Any such agreement may include, but need not be limited to, any or all of the following: a. Provisions defining what constitutes a default thereunder and providing for the rights and remedies of the parties thereto upon the occurrence of such a default, including, without limitation, the right to discontinue the delivery of products or services to a defaulting party and requirements that the remaining parties not in default who are entitled to receive products or services from the same electric project may be required to pay for and use or otherwise dispose of, on a proportionate or other basis, all or some portion of the products and services which were to be purchased by the defaulting party. b. Provisions granting one or more of the parties the option to purchase the interest or interests of one or more other parties in the electric project upon such occurrences, and at such times and http://www.flsenate.gov/Statutes/index.cfm?p=2&App _ mode=Display _ Statute&Search _'" 1 0/20/2008 Statutes & Constitution :View Statutes :->2008->ChO1 63->Section 01 : flsenate.gov Agen&g~n1}JeftJC October 28, 2008 Page 42 of 106 pursuant to such terms and conditions, as the parties may agree, notwithstanding the limitations on options in the provisions of any law to the contrary. c. Provisions setting forth restraints on alienation of the interests of the parties in the electric project. d. Provisions for the planning, design, engineering, licensing, acquisition, construction, completion, management, control, operation, maintenance, repair, renewal, addition, replacement, improvement, modification, insuring, decommissioning, cleanup, retirement, or disposal, or all of the foregoing of such electric project by anyone or more of the parties to such agreement, which party or parties may be designated in or pursuant to such agreement as agent or agents on behalf of itself and one or more of the other parties thereto or by such other means as may be determined by the parties thereto. e. Provisions for a method or methods of determining and allocating among or between the parties the costs of planning, design, engineering, licensing, acquisition, construction, completion, management, control, operation, maintenance, repair, renewal, addition, replacement, improvement, modification, insuring, decommissioning, cleanup, retirement, or disposal, or all of the foregoing with respect to such electric project. f. Provisions that any such public agency or legal entity, or both, will not rescind, terminate, or amend any contract or agreement relating to such electric project without the consent of one or more persons with which such public agency or legal entity, or both, have entered into an agreement pursuant to this section or without the consent of one or more persons with whom any such public agency or legal entity, or both, have made a covenant or who are third-party beneficiaries of any such covenant. g. Provisions whereby any such public agency or legal entity, or both, are obligated to pay for the products and services of such electric project and the support of such electric project, including, without limitation, those activities set forth in sub-subparagraph d., without setoff or counterclaim and irrespective of whether such products or services are furnished, made available, or delivered to such public agency or legal entity, or both, or whether any electric project contemplated by such contract or agreement is completed, operable, or operating, and notwithstanding suspension, interruption, interference, reduction, or curtailment of the products and services of such electric project and notwithstanding the quality, or failure, of performance of anyone or more of the activities set forth in sub-subparagraph d. with respect to such electric project. h. Provisions that in the event of the failure or refusal of any such public agency or legal entity, or both, to perform punctually any specified covenant or obligation contained in or undertaken pursuant to any such agreement, anyone or more parties to such agreement or anyone or more persons who have been designated in such agreement as third-party beneficiaries of such covenant or obligation may enforce the performance of such public agency or legal entity by an action at law or in equity, including, but not limited to, specific performance or mandamus. i. Provisions obligating any such publiC agency or legal entity, or both, to indemnify, including, without limitation, indemnification against the imposition or collection of local, state, or federal taxes and interest or penalties related thereto, or payments made in lieu thereof, to hold harmless, or to waive claims or rights for recovery, including claims or rights for recovery based on sole negligence, gross negligence, any other type of negligence, or any other act or omission, intentional or otherwise, against one or more of the other parties to such agreement. Such provisions may define the class or classes of persons for whose acts, intentional or otherwise, a party shall not be responsible; and all of such provisions may be upon such terms and conditions as the parties thereto shall determine. j. Provisions obligating any such public agency or legal entity, or both, not to dissolve until all principal and interest payments for all bonds and other evidences of indebtedness issued by such public agency or legal entity, or both, have been paid or otherwise provided for and until all http://\\'WW.flsenate.gov/Statutes/index.cfm?p=2&App_ mode= Display _ Statute&Search _'" 1 0/20/2008 Statutes & Constitution :View Statutes :->2008->ChOI63->Section 01 : flsenate.gov Agenfi?~J,4J~f i&: October 28. 2008 Page 43 of 106 contractual obligations and duties of such public agency or legal entity have been fully performed or discharged, or both. k. Provisions obligating any such public agency or legal entity, or both, to establish, levy, and collect rents, rates, and other charges for the products and services provided by such legal entity or provided by the electric or other integrated utility system of such public agency, which rents, rates, and other charges shall be at least sufficient to meet the operation and maintenance expenses of such electric or integrated utility system; to comply with all covenants pertaining thereto contained in, and all other provisions of, any resolution, trust indenture, or other security agreement relating to any bonds or other evidences of indebtedness issued or to be issued by any such public agency or legal entity; to generate funds sufficient to fulfill the terms of all other contracts and agreements made by such public agency or legal entity, or both; and to pay all other amounts payable from or constituting a lien or charge on the revenues derived from the products and services of such legal entity or constituting a lien or charge on the revenues of the electric or other integrated utility system of such public agency. l. Provisions obligating such legal entity to enforce the covenants and obligations of each such public agency with which such legal entity has entered into a contract or agreement with respect to such electric project. m. Provisions obligating such legal entity not to permit any such public agency to withdraw from such legal entity until all contractual obligations and duties of such legal entity and of each such public agency with which it has entered into a contract or agreement with respect to such electric project have been fully performed, discharged, or both. n. Provisions obligating each such public agency which has entered into a contract or agreement with such legal entity with respect to an electric project not to withdraw from, or cause or participate in the dissolution of, such legal entity until all duties and obligations of such legal entity and of each such public agency arising from all contracts and agreements entered into by such public agency or legal entity, or both, have been fully performed, discharged, or both. o. Provisions obligating each such public agency which has entered into a contract or agreement with such legal entity or which has entered into a contract or agreement with any other person or persons with respect to such electric project to maintain its electric or other integrated utility system in good repair and operating condition until all duties and obligations of each such public agency and of each such legal entity arising out of all contracts and agreements with respect to such electric project entered into by each such public agency or legal entity, or both, have been fully performed, discharged, or both. 3. All actions taken by an agent designated in accordance with the provisions of any such agreement may, if so provided in the agreement, be made binding upon such public agency or legal entity, or both, without further action or approval by such public agency or legal entity, or both. Any agent or agents designated in any such agreement shall be governed by the laws and rules applicable to such agent as a separate entity and not by any laws or rules which may be applicable to any of the other participating parties and not otherwise applicable to the agent. (c) Any such legal entity may acquire services, output, capacity, energy, or any combination thereof only from: 1. An electric project in which it has an ownership interest; or 2. Any other source: a. To the extent of replacing the services, output, capacity, energy, or combination thereof of its share of an electric project when the output or capacity of such electric project is reduced or unavailable; or http://W\\<w.flsenate.gov/Statutes/index.cfm?p=2&App _ mode= Display _ Statute&Search_... 10/20/2008 Statutes & Constitution :View Statutes :->2008->Ch0163->Section 01 : flsenate.gov AgenJ1>e~rl1~ iGt October 28,2008 Page 44 of 106 b. At any time and in any amount for resale to any of its members as necessary to meet their retail load requirements. However, under sub'subparagraph 2.b., such legal entity may not purchase wholesale power for resale to any of its members from any electric utility as a result of any legal proceeding commenced by the legal entity or any of its members after January 1, 1982, before any state or federal court or administrative body, to the extent that such purchase or proceeding would involuntarily expand the responsibility of the electric utility to provide such wholesale power. (d) Any such legal entity may sell services, output, capacity, energy, or any combination thereof only to: 1. Its members to meet their retail load requirements; 2. Other electric utilities or foreign public utilities which have ownership interests in, or contractual arrangements which impose on such electric utilities or foreign public utilities obligations which are the economic equivalents of ownership interests in, the electric project from which such services, output, capacity, energy, or combination thereof is to be acquired; 3. Any other electric utility or foreign public utility to dispose of services, output, capacity, energy, or any combination thereof that is surplus to the requirements of such legal entity: a. If such surplus results from default by one or more of the members of such legal entity under a contract or contracts for the purchase of such services, output, capacity, energy, or combination thereof; and b. If the revenues from such contract or contracts are pledged as security for payment of bonds or other evidences of indebtedness issued by such legal entity or if such revenues are required by such legal entity to meet its obligations under any contract or agreement entered into by such legal entity pursuant to paragraph (b); 4. Any other electric utility or foreign public utility for a period not to exceed 5 years from the later to occur of the date of commercial operation of, or the date of acquisition by such legal entity of any ownership interest in or right to acquire services, output, capacity, energy, or any combination thereof from, the electric project from which such services, output, capacity, energy, or combination thereof is to be acquired, if: a. One or more members of such legal entity have contracted to purchase such services, output, capacity, energy, or combination thereof from such legal entity commencing upon the expiration of such period; and b. Such services, output, capacity, energy, or combination thereof, if acquired commencing at an earlier time, could have been reasonably predicted to create a surplus or surpluses in the electric system or systems of such member or members during such period, when added to services, output, capacity, energy, or any combination thereof available to such member or members during such period from facilities owned by such member or members or pursuant to one or more then- existing firm contractual obligations which are not terminable prior to the end of such period without payment of a penalty, or both; or 5. Any combination of the above. Nothing contained in this paragraph shall prevent such legal entity from selling the output of its ownership interest in any such electric project to any electric utility or foreign public utility as emergency, scheduled maintenance, or economy interchange service. (e) All obligations and covenants of any such public agency or legal entity, or both, contained in hrtp://www.fl senate. gov/Statutes/index.cfm?p=2&App _ mode=Display _ Statute&Search _'" 1 0/20/2008 Statutes & Constitution: View Statutes :->2008->ChOI63->Section 01 : flsenate.gov f\genl?@'~rtl&~j Hfc October 28. 2008 Page 45 of 106 any contract or agreement, which contract or agreement and obligations and covenants are authorized, permitted, or contemplated by this section, shall be the legal, valid, and binding obligations and covenants of the public agency or legal entity undertaking such obligations or making such covenants; and each such obligation or covenant shall be enforceable in accordance with its terms. (f) When contract payments by any such public agency contracting with any such legal entity or revenues of any such public agency contracting with any other person or persons with respect to an electric project are to be pledged as security for the payment of bonds or other evidences of indebtedness sought to be validated, the complaint for validation may make parties defendant to such action, in addition to the state and the taxpayers, property owners, and citizens of the county in which the complaint for validation is filed, including nonresidents owning property or subject to taxation therein: 1. Every public agency the contract payments of which are to be so pledged. 2. Any other person contracting with such public agency or legal entity, or both, in any manner relating to such electric project, and particularly with relation to any ownership or operation of any electric project; the supplying of electrical energy to such public agency or legal entity, or both; or the taking or purchase of electrical energy from the electric project. 3. The taxpayers, property owners, and citizens of each county or municipality in which each such public agency is located, including nonresidents owning property or subject to taxation therein, and the holders of any outstanding debt obligations of any such public agency or legal entity. All such parties who are made defendants and over whom the court acquires jurisdiction in such validation proceedings shall be required to show cause, if any exists, why such contract or agreement and the terms and conditions thereof should not be inquired into by the court, the validity of the terms thereof determined, and the matters and conditions which are imposed on the parties to such contract or agreement and all such undertakings thereof adjudicated to be valid and binding on the parties thereto. Notice of such proceedings shall be included in the notice of validation hearing required to be issued and published pursuant to the provisions of paragraph (7) (c); and a copy of the complaint in such proceedings, together with a copy of such notice, shall be served on each party defendant referred to in subparagraphs 1. and 2. who is made a defendant and over whom the court acquires jurisdiction in such validation proceedings. Any person resident of this state or any person not a resident of, or located ',\'ithin, this state, whether or not authorized to transact business in this state, who contracts with any such public agency or legal entity, or both, in any manner relating to such electric project, may intervene in the validation proceedings at or before the time set for the validation hearing and assert any ground or objection to the validity and binding effect of such contract or agreement on his or her own behalf and on behalf of any such public agency and of all citizens, residents, and property owners of the state. No appeal may be taken by any person who was not a party of record in such proceedings at the time the judgment appealed from was rendered. An adjudication as to the validity of any such contract or agreement from which no appeal has been taken within the time permitted by law from the date of entry of the judgment of validation or, if an appeal is filed, which is confirmed on appeal shall be forever conclusive and binding upon such legal entity and all such parties who are made defendants and over whom the court acquires jurisdiction in such validation proceedings. (g) Each such public agency or legal entity, or both, which contracts with any other person or persons with respect to the ownership or operation of any electric project, and each such public agency which contracts with any legal entity for the support of, or supply of, power from an electric project, is authorized to pledge to such other person or persons or such legal entity, or both, for the benefit of such electric project all or any portion of the revenues derived or to be derived: 1. In the case of any such public agency, from the ownership and operation of its electric or other integrated utility system; and http://WW\-\'.flsenate.gov/Statutes/index.cfm?p=2&App _ mode=Display _ Statute&Search _'" 1 0/20/2008 Statutes & Constitution :View Statutes :->2008->ChOI63->Section 01 : flsenate.gov Ageni@.~rliW l&c October 28, 2008 Page 46 of 106 2. In the case of a legal entity, from the provision of products and services by it; and to pledge to such other person or persons or such legal entity, or both, for the benefit of such electric project any securities, contract rights, and other property. Each such legal entity is also authorized to pledge to, or for the benefit of, the holders of any bonds, notes, or other evidences of indebtedness issued by such legal entity, as security for the payment thereof, any revenues, securities, contract rights, or other property. Any such pledge shall specify the priority and ranking of such pledge in respect of other pledges, if any, of the same revenues, securities, contract rights, or other property by such public agency or legal entity. Any pledge of revenues, securities, contract rights, or other property made by any such public agency or legal entity, or both, pursuant to this section shall be valid and binding from the date the pledge is made. The revenues, securities, contract rights, or other property so pledged and then held or thereafter received by such public agency or legal entity, or any fiduciary, or such other person or persons shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act; and the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, in contract, or otherwise against the public agency or legal entity making such pledge, without regard to whether such parties have notice thereof. The resolution, trust indenture, security agreement, or other instrument by which a pledge is created need not be filed or recorded in any manner. (h) Any such legal entity is authorized and empowered to sue and be sued in its own name. In the event that any such public agency or legal entity enters into a contract or an agreement with respect to an electric project located in another state, or owns an interest in an electric project located in another state, an action against such public agency or legal entity may be brought in the federal or state courts located in such state. (i) The provisions of this subsection shall be liberally construed to effect the purposes hereof. The powers conferred by the provisions of this subsection shall be in addition and supplementary to the powers conferred by the other provisions of this section, by any other general, local, or special law, or by any charter of any public agency. When the exercise of any power conferred on any public agency or any legal entity by the provisions of this subsection would conflict with any limitation or requirement upon such public agency or such legal entity contained in the other provisions of this section, in any other general, local, or special law, except s. 361.14, or in the charter of such public agency, such limitation or requirement shall be superseded by the provisions of this subsection for the purposes of the exercise of such power pursuant to the provisions of this subsection. (j) While any bonds or other evidences of indebtedness issued by any such public agency or any such legal entity pursuant to the authority granted by paragraph (7)(c) or other applicable law remain outstanding, or while any such public agency or any such legal entity has any undischarged duties or obligations under any contract or agreement, including, but not limited to, obligations to any operator or joint owner of any electric project, the powers, duties, or existence of such public agency or such legal entity or of its officers, employees, or agents shall not be diminished, impaired, or affected in any manner which will affect materially and adversely the interests and rights of the owners of such bonds or other evidences of indebtedness or the persons to whom such duties or obligations are owed under such contract or agreement. The provisions of this subsection shalt be for the benefit of the state, each such public agency, each such legal entity, every owner of the bonds of each such legal entity or public agency, and every other person to whom such public agency or such legal entity owes a duty or is obligated by contract or agreement; and, upon and after the earlier of the execution and delivery by any public agency or legal entity, pursuant to this section, of any contract or agreement to any person with respect to an electric project, or the issuance of such bonds or other evidences of indebtedness, the provisions of this subsection shall constitute an irrevocable contract by the state with the owners of the bonds or other evidences of indebtedness issued by such public agency or legal entity and with the other person or persons to whom any such public agency or legal entity owes a duty or is obligated by any such contract or agreement. http://www .flsenate.gov/Statutes/index.cfm?p=2&App _ mode=Display _ Statute&Search_... 10/20/2008 Statutes & Constitution :View Statutes :->2008->Ch0163->Section 01 : flsenate.gov Agerl~geJ:~,1f0f it9c October 28. 2008 Page 47 of 106 (k) The limitations on waiver in the provisions of s. 768.28 or any other law to the contrary notwithstanding, the Legislature, in accordance with s. 13, Art. X of the State Constitution, hereby declares that any such legal entity or any public agency of this state that participates in any electric project waives its sovereign immunity to: 1. All other persons participating therein; and 2. Any person in any manner contracting with a legal entity of which any such public agency is a member, with relation to: a. Ownership, operation, or any other activity set forth in sub-subparagraph (b)2.d. with relation to any electric project; or b. The supplying or purchasing of services, output, capacity, energy, or any combination thereof. (l) Notwithstanding the definition of "electric project" contained in paragraph (3)(d), or any other provision of this subsection or of part II of chapter 361 limiting the parties which may participate jointly in electric projects, any public agency of this state which is an electric utility, or any separate legal entity created pursuant to the provisions of this section, the membership of which consists only of electric utilities, and which exercises or proposes to exercise the powers granted by part II of chapter 361, may exercise any or all of the powers provided in this subsection jointly with any other person with respect to the acquisition, extraction, conversion, use, transportation, storage, reprocessing, disposal, or any combination thereof of any primary fuel or source thereof, as well as any other materials resulting therefrom, only when such primary fuel or source thereof is to be used for the generation of electrical energy in one or more electric projects by such legal entity, any member thereof, or any combination thereof; and, in connection therewith, any such public agency or legal entity shall be deemed to have all the additional powers, privileges, and rights provided in this subsection. (m) In the event that any public agency or any such legal entity, or both, should receive, in connection with its joint ownership or right to the services, output, capacity, or energy of an electric project, as defined in paragraph (3)(d), any material which is designated by the person supplying such material as proprietary confidential business information or which a court of competent jurisdiction has designated as confidential or secret shall be kept confidential and shall be exempt from the provisions of s. Jl2..07(1). As used in this paragraph, "proprietary confidential business information" includes, but is not limited to, trade secrets; internal auditing controls and reports of internal auditors; security measures, systems, or procedures; information concerning bids or other contractual data, the disclosure of which would impair the efforts of the utility to contract for services on favorable terms; employee personnel information unrelated to compensation, duties, qualifications, or responsibilities; and formulas, patterns, devices, combinations of devices, contract costs, or other information the disclosure of which would injure the affected entity in the marketplace. (16)(a) All of the additional powers and authority granted by chapter 82-53, Laws of Florida, to a public agency as defined in paragraph (3)(b), a legal entity created pursuant to the provisions of this section, or both, respecting agreements for participation in electric projects shall apply to any agreement in existence as of March 25, 1982, as well as to any such agreement entered into thereafter; but no additional limitation provided in chapter 82-53 upon any power or authority of any such public agency or legal entity, or both, respecting agreements for participation in electric projects shall apply to any such agreement entered into prior to March 25, 1982. (b) Chapter 82-53, Laws of Florida, shall be deemed to be enacted for the purpose of further implementing the provisions of s. 10(d), Art. VII of the State Constitution, as amended. (17) In any agreement entered into pursuant to this section, any public agency or separate legal entity created by interlocal agreement may, in its discretion, grant, sell, donate, dedicate, lease http://wwv.'.f1senate.gov/Statutes/index.cfm ?p=2&App _ mode= Display _ Statute&Search_... 10/20/2008 - ,,-. Statutes & Constitution :View Statutes :->2008->Ch0163->Section 01 : flsenate.gov AgeRe.g~dr9t ~.1Sloc October 28,2008 Page 48 of 106 or otherwise convey, title, easements or use rights in real property, including tax,reverted real property, title to which is in such public agency or separate legal entity, to any other public agency or separate legal entity created by interlocal agreement. Any public agency or separate legal entity created by interlocal agreement is authorized to grant such interests in real property or use rights without consideration when in its discretion it is determined to be in the public interest. Real property and interests in real property granted or conveyed to such public agency or separate legal entity shall be for the public purposes contemplated in the interloeal agreement and may be made subject to the condition that in the event that said real property or interest in real property is not so used, or if used and subsequently its use for such purpose is abandoned, the interest granted shall cease as to such public agency or separate legal entity and shall automaticalfy revert to the granting public agency or separate legal entity. History.--ss. 1, 2, ch. 69-42; ss. 11, 18, 35, ch. 69-106; s. 1, ch. 79-24; S5. 1, 2, eh. 79-31; s. 61, eh. 79-40; s. 68, ch. 81-259; ss. 1,7,8, ch. 82-53; s. 45, ch. 83-217; 5. 21, ch. 85-55; s. 1, ch. 87-9; s. 6, eh. 87-237; s. 46, eh. 88-130; ss. 33, 34, ch. 90-360; s. 83, ch. 91-45; s. 11, ch. 93-51; s. 896, eh. 95-147; s. 45, eh. 96-406; s. 19, ch. 97-236; s. 61, ch. 99-2; s. 23, ch. 99-251; s. 1, ch. 2001- 201; s. 72, eh. 2002,295; s. 156, ch. 2003-261; s. 10, eh. 2004-5; s. 1, eh. 2004-336; s. 6, eh. 2006- 218; s. 1, eh. 2006-220; s. 1, ch. 2007-1; 5.1, ch. 2007-90; s. 1, eh. 2008-43. Disclaimer: The information on this system is unverified. The joumals or printed biHs of the respective chambers should be consulted for official purposes. Copyright ~ 2000-2006 State of Florida. ~ ,.,-... http://www.f1senate.gov/Statutes/index.cfm?p=2&App _ mode=Display _ Statute&Search _'" 1 0/20/2008 RESCLUTIOH HO. 9i-~ -I \. ~. .;1. ..~~ /\C1en:;a It~m: ~~o. 10C ~ O::;t:::;ber 28 2D~i8 9 ~)f 1:16 A ~ESOLUTIOH 07 COLLIER COUHTY, 7LORIDA, PURSUANT TO SECTIO. 357.171, 7LOaIDA STATUTES, REBCINDING COLLIER COt1JtTY JtESOLt1'l'IOJl HO., 85-10t AHD EXCLUDING COLLIER COtJ'Jrl'Y nOH 'l'1IlI PIlOVIBIOlfB 01' CXAP'I'E1t 361, FLORIDA STATVTZS, AIm RZHOVI)JG JU1ISDICTIOH OJ' THE 'FLORIDA PUBLIC BUVICH COKKISSIOlf OVER PRIVA'l'B WA'l'ER AHD WASTEWA'l'ER UTILITIES IX COLLIER COUNTY AS PROVIDED BY CKAPTER 367, FLORIDA STATUTES. I.~~~: ..,:.;t, ... . ~...~. . ':I.~ :;Ji . ~.:~f '. ......~;.~... . ': .. - .~~:..~ '<rl':~. -"' "";~': :.....7.' .r:1'....... ,,~. >,"1.J '."~ WHEREAS, on April 16, 1985, the Board adopted Resolution No. 85-104 and thereby declared and effectuated that Collier county immediately become subject to all provisions of Chapter 367, Florida statutes, thereby establishing Chapter 367 jurisdiction ot the Florida Public Service commission over private water and wastewater utilities within Collier County; and WHEREAS, Section 367.171(1), Florida statutes, provides that a county, after ten (10) continuous years under Chapter 367, Florida statutes, jurisdiction of the Florida Public Service ~;'l~ . :;IJ '", :,.... ~)~.t"" I>~~ - r,,: .., "0"-" .t . .; "~,.:~ ':'..I:'~..'.~ ... - .. ;..~.; , .. ...~;. ' .,.;t:; ~" - .tY.,.~J: . p...;yi ,.~~ ..;....1<.::0.. ~.?S~ , ,.:;1: ":'h!PfJ "'~i/i~ 1:~~; ;: commission may, by resolution or ordinance, rescind any such . prior resolution or ordinance of that county which imposed' Florida Public Commission jurisdiction over such utilities, and thereby assume County jurisdiction over such private water and wastewater utilities; and WHEREAS, the interests of the citizens of Collier County will be better served presently and in the future if privata water and wastewater utilities are hereafter regulated locally by Collier county, a political SUbdivision of the State of Florida. 1. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Collier County, Florida, that: Section Pursuant to Florida 367.171, statutes, Resolution No. 85-104, which was adopted by Collier April 16, 1985, and which established Chapter 367, Statutes, jurisdiction of the Florida Public Service Commission _.~-- ...,.,w.... --~ .._~- t'.....i.'I"Q....1i:I collier ..-.....-- WQ.\-t:.L --~ 0111.1 utilities ioiilStewater within County, is hereby rescinded. fEB 2 7 ~nda Item:Nb'. r'l[)~'(,i';,' ' October 23 .~O~ "1i;i,..: 2. This Resolution expr,essly excludes Collier coun~~tf~JJ~,~~~"j:' < 1'f ' ','" ~ :.--.;.J _;, . t'i the provision of Chapter 367 I Florida statutes, except to the' ',; vary limitea extent proviaed otherwise in Section 367.171, " Florida statutes, and thereby immediately removes Chapter 367, 7lorida statutes, jurisdiction of the Florida Public Service c~is8ion over private water and wastewater utilities in Collier County as provided by law. .. 3. The Clerk to the Board shall, as soon as possible, notify the Florida Public service Commission of the adoption, of.' . this Resolution and shall mail a certified copy ot this ;: Resolution to the Office of Records and Reporting of the Florida '... . Public service Commission in Tallahassee, Florida. This Resolution odopted this P.7 doy of 64(."Z' 1996 after motion, second and majori;y vote favoring s e. - ., . t", . J ..... ,.;; : .~. ,ATTEST: "'1" :,.~',DW~~1tt': ~(' \~OCK, Clerk ,"": : . ,. . .. ".. ~, " ... ^. ...... I "" (' 1", ! ,:1:/ . '.:~',' "'.'~ \ '~+~;~I~; ',. ;j,:;..' : t._ J,," ,,::,' , ,:"~/I:, __~ ~ '." ' " ..;:'.: , ~:~ , "f. <C" . ~ I! .. '\ . ~. .J '~:~" y ~"'" ... " '4 ..:".. . ..,.. ..' ~:" ." . _, ., \ \,_' f ~!~, "... '.., .' ,.- -;1'. Appro\;e'd as to form and ,\3: legal sufficiency: ~'_., . .: "~ i "':" ~.' . ., .... '-..' BOARD OF COUNTY COMMISSIONERS .:- COLLIER COUNTY, FLORIDA '.: j', ~~... ~ C. NORRIS, Chairman . iMi!/A~i/ c~unty Attorney IIJ:I'IlonoltlO rx:wla'o/I ~ )-' ",-!,"" i'\aenda Item No. 10C ~ 01. bB28~. 008 1 9 -1 . 1 06 c , MEMORANDUM Date: April 12, 2000 To: "Bleu" Wallace, Director utility and Franchise Regulation Department From: Ellie Hoffman, Deputy Clerk Minutes & Records Department Re: Interlocal Agreement Regarding Collier County's Oversight of Rates, Fees and Charges of the Golden Gate utility System Enclosed for your use, please find one original document as referenced above, approved by the Board of County Commissioners on Tuesday, April 11, 2000, (Agenda Item #16Al). I am retaining one original for the record. If you should have any questions, please feel free to contact me at (8406). Thank you. Enclosure Agenda Item~o. 1 i 1Jc&ber 8. 20 J. If,9e of 10 INTERLOCAL AGREEMENT REGARDING COLLIER COUNTY'S OVERSIGHT OF RATES, FEES AND CHARGES OF THE GOLDEN GATE UTILITY SYSTEM ~ THIS INTERLOCAL AGREEMENT, dated as of ~ ll~ , J..999 (the "Rate Approval lnterlocal Agreement"), by and between the F ORiDA GOVERNMENTAL UTILITY AUTHORITY, a legal entity and public body created by interlocal agreement pursuant to section 163.01 (7)(g), Florida Statutes (the "Authority") and COLLIER COUNTY (the "COlU1ty"), each being a "public agency" under Part I of Chapter 163, Florida Statutes (the "lnterlocal Act"), as defined in subsection 163.0l(3)(b), Florida Statutes. WITNESSETH: WHEREAS, the Authority was established pursuant to an Interlocal Agreement, dated as of February 1, 1999 (the "Interlocal Agreement"), initially among Brevard County, Florida; Lee County, Florida; Polk County, Florida; and Sarasota County, Florida for the purpose of acquiring, owning, improving, operating and maintaining water and wastewater utility facilities; and WHEREAS, pursuant to the Interlocal Agreement, the Authority entered into an Agreement to purchase certain water and wastewater utility facilities owned or controlled by Avatar Holdings, Inc. and its subsidiaries ("Avatar") and such facilities included a water and wastewater utility system located in Collier County, Florida, more commonly known as the Golden Gate Utility System (the "Golden Gate Utility System"); and WHEREAS, the Authority and the County entered into an Interlocal Agreement Relating to the Acquisition of the Golden Gate Utility System dated March 1, 1999 (the "Acquisition Interlocal Agreement") that provided that the County would have the power to review and/or approve rates, fees and charges relating to the Golden Gate Utility System; and WHEREAS, the said Acquisition lnterlocal Agreement also provided that the County and the Authority would enter into a separate interlocal agreement with respect to the process to be followed in the review and approval by the County of rates, fees and charges of the Golden Gate Utility System, which interlocal agreement requirement shall be satisfied by the adoption of this Rate Approval Interlocal Agreement by both parties. NOW, THEREFORE, in consideration of the foregoing and the covenants contained herein, it is mutually agreed and understood by and between the County and the Authority as follows: ,4ge~1~~2~Nb~~ 1 .ru3f\ 106 SECTION 1. APPLICATION FOR REVIEW AND APPROVAL. (A) Unless the respective change is then mandated by law, the Authority shall submit to the County a request in writing, with accompanying documentation to substantiate any change as listed below, for review and/or approval at least sixty (60) days prior to the proposed effective date of the following actions: (1) Adjustment in water and/or wastewater rates, fees and charges; or (2) Changes in water and/or wastewater service area boundaries; or (3) Transfer of ownership of the utility system. Before making its decision on the respective matter, the Authority shall carefully consider any of the County's comments, but the Authority shall not be required to delay its decisions awaiting receipt of the County's comments nor obligated to modify its decisions based on the County's comments if doing so would cause the rates, fees or charges to be insufficient to comply fully with all covenants contained in applicable financing documents and provide a reasonable margin of safety over and above the requirements of such covenants. This Agreement gives to the County the right to make such comments, but imposes no duty upon the County to do so. (B) It is recognized that the Authority's rates, fees and charges are not based on the rate base/rate of return methodology cited in Collier County Ordinance No. 96-6, as amended, and that the Authority's rates, fees a..'1d charges presently are and at all times must be determined and established to provide funds which, with other funds available for such purposes, are at least sufficient at all times to pay the costs of operating, managing, expanding, improving and maintaining the utility system, including reserves for such purposes, and for replacement of necessary assets, payment of debt service pursuant to applicable bond covenant requirements and other state and federal laws and to provide a reasonable margin of safety over and above the total amount of such payments. SECTION 2. REGULATORY ASSESSMENT FEES. Regulatory Assessment Fees shall be remitted to the County pursuant to Collier County Ordinance No. 96-6, as amended, effective April 16, 1999. It is recognized that Florida Cities Water Company is responsible for Regulatory Assessment Fees through April 15, 1999, the closing date of sale of the Golden Gate Utility System to the Authority. SECTION 3. COUNTY ASSISTANCE WITH DISPUTES. The County shall assist the Authority or act as facilitator in addressing customer servicelbilling disputes and resolutions thereof. SECTION 4. AMENDMENTS AND TERM. This Rate Approval lnterlocal Agreement may be amended in writing at any time by an interlocal agreement between the Authority and the County and shall continue untillawfuliy terminated by the parties thereto. -2- Agelnd~~ Itee~~N~'2bOlC e of 10 " SECTION 5. RECORDING; EFFECTIVE DATE. (A) A copy of this Rate Approval Interlocal Agreement (and all future amendments hereto, if any) shall be filed in accordance with the provisions of the Interlocal Act and recorded by the County in the Public Records of Collier County, Florida. (B) This Rate Approval Interlocal Agreement shall become effective on the latter of (1) the dated date hereof or (2) the last date the last of the parties hereto executes this Rate Approval Interlocal Agreement and the filing requirements of Section SeA) hereof are satisfied. IN WITNESS WHEREOF, this Rate Approval Interlocal Agreement has been executed by and on behalf of the Authority and the County by their authorized officers or officials. ....~.. ;' ~l"" '1 ",:. ~ .b.,-. ,'.~""'. ......~ . M:te$f ~s'to, Cha 1r'11an' s . . ~tgr.~\tLirl,1! '~"<:~lj. Approved ~to IOrm ,and legal suffiCiency: f. ;MVIA p~ Thorn s C. Palmer Assistant County Attorney BOARD OF COUNTY COMMI~SIONERS COLLIER CO~NTIr F. Y'RI~., __ . {\. I ~/1~ I By. '#tv i~ ,~ --- J.~ 0 , CHAIRMAN ATTEST: . DWIGHT E. BROCK, CLERK r. "I' ATTEST: (.CT~~ FLORIDA GOVERNMENTAL UTILITY AUTHORITY By: ~1dt"^--'v1\... ~J.-.t.,-VV-C.1-4 CHAIRMAN Approved as to form an legro S7Z 000 . Pelham, Jr. Tal Counsel ~ -3- FGUA Home Home Customers Account Information Resources About Us Contact For up-to-date emergency Ir general information about your waterqstem, contact l'OUrCommunlty Service Representative > > Get the latest issae! O~ration5 Office ';'80 VVN.I'l/fJ [.;.pn'1g;.~ ~:.! 5L.1:~"2 20Ca 1(J11~Y.'flnd H ::? /,..q 877.....:15231.82 Executiwe Office ! .~n \.191":.;:):1 ~'~l -',:t": .su:~e 2SC- lriHfIt't1Sf>f;P fI .:;/;()B 8:;G..'89G '-747 ~ ....III~fiur' V'Hi~~' \.,\.K"~ fu';'Jlj"t'.x1 l~' ",'''(II.-\.:t.. ~u,o;'l' pr ~:-. ".~It'" ~~~J ....en .C:'l'-. ~\ \....- ~'Fi r. -:i _ ~('> Ag9nda~~ ~o~~~C October 28, 2008 r'age 55 of 106 I Systems I Records I RFPs & Bids I Development Info I Resources I Board I Customers I The FGUA: Your Water Source Welcome to the FIQrid<LG.o.\I.e.mmental.!.!lJllly..A.uJtlQdty (FGUA). We are committed to bringing our customers-including cities, counties and the water end-users-the best service and highest quality water in Florida. We provide drinking water and wastewater service and infrastructure to various counties in Florida. By joining the FGUA. these counties have pooled their resources to bring citizens the best of both worlds: private-sector functionality with public-sector commitment and experience. The main systems of the FGUA are .ciolden Gate and Lehigh Acres. Depending on where you live, your water and wastewater come from one of these systems. For up-to-date emergency & general information about your water system. contact your Community S.JtlYice R~.o.tati\!.e Lehigh Acres and Golden Gate Utility Systems Receive Grant The Flonda Governmental Utility Authority (FGUA) has been awarded a $17,500.00 Water Savings Incentive Program (WaterSIP) Grant from the South Florida Water Management District for Fiscal Year 12009. The FGUA will apply the grant to the Dead End Mains Automatic Flushing Program for Lehigh ; Acres and Golden Gate. Automatic flushing devices are used on water mains that terminate in a dead end. Without the deVice, the utility flushes the main using the closest fire hydrant to the end of the water line. This practice consumes substantial time and flushing must occur a few times a month. The automatic flushing devices use substantially iess water and staff time since they are programmed to flush a small amount of water each day to achieve tne desired chlorine residual level. The flushing program ensures customers receive high quality drinking water. The FGUA submitted the grant application in April. 2008. The South Florida Water Management Distnct notified FGUA they were awarded the grant in a letter dated August 22. 2008. This is the second grant that SFWMD has awarded FGUA. the first grant was for construction of a capital improvement project in Golden Gate. For more information about the Dead End Mains Automatic Flushing Program, please contact the FGUA Operations Office at 407,629-6900. Download handy emergency preparedness tip sheets Download our \l@terdi~R~!iQJl.ref..eIence3lL~J (adapted from materials by the Florida Deparlment of Health) Downioad a h.i3Ddy..sloJITIj)J:.ej:lara1iQO c..he..GklisJ (we adapted this checklist from \o\I'MN .hurrigl..n~.com) Make family preparations for the hurricane season I Download the comprehenSive State of Florida Family Preparedness Guide for free from the Florida Department of Health's website at www.qoh.st.i3te.fi..u~ Qli,:!sl1~~ for more information about the FGUA Systems. or choose from one of the links below: Syst~lT1~ OffiCial Records 1;).i9~ ~SOL!LCeS FGUA Board pI]H~.JdJJ>.tQmeL CenIM tlbout Us Cont9ill~LQl,L~ FGU.A. Newsletter - Current issue: Summgl (Veri'lOQJ http://www.fgua.com!contents/Home .asp 10/20/2008 Golden Gate Home Customers Account Information Resources About Us Contact .. Back forup-to-ute e_rgency" venenl information about ,our wat.rQltem, contact your Comm unity ServrC2 Rt>prl!Sl'ntatlw >:> Get the latest fUlle! Operations Office ;fosO l.'\'ckr...;j Sf)rr1'1f..s H:I 511;~C: 20CO L(lng',.,,~)(lrl r. L 3:.'/ /9 877__;'552.3'82 Ex&ctrtlwe Office 1 Cj(}f) Mahan [;h:C Su'::e 2::\0 'l;1l1nl',rH;f:,~r. 1"1- ~~~:?30h 856/8% 4747 .\ Itllltl'liUlI1'It'jl,eI t~vth.~!l<ldltli~1 1"..........""l...._...'l'Jl:f.~:....'"" ~~~J ....cn ~.,.. ~\\....- -,,.q~ o _ ~<"> Agendaft~gfNo~(&c October 28, 2008 Page 56 of 106 I Systems I Records I RFPs & Bids I Development Info I Resources I Board I Customers I .. Gat. \It_ SJ$MM The Goiden Gate System of the FGUA serves the Golden Gate community in Collier county, which is located in an unincorporated area between Green Blvd., the Golden Gate main canal, Santa Barbara Blvd., and Collier Blvd. (CR 951) (approximately eight miles east of Naples in Collier county). Golden Gate is a series of large subdivisions that cover just over four square miles of urban residential and light commercial property. Most of these are single-family homes. The Golden Gate System serves about half of the Golden Gate development with water services and provides a little less than half with wastewater services. The supply for Golden Gate water system comes from a series of shallow aqUifer wells that pump about 1.95 million gallons per day. The system also has a water treatment plant, three storage tanks, and approximately 40 miles of water lines that carry water back and forth from the facilities to homes and businesses. As of March 2007, the Golden Gate System served 3,936 water customers and 2625 wastewater customers. To keep your system current, the FGUA is updating the Golden Gate System's water and wastewater Master Plan. In addition to the existing Golden Gate facilities, the FGUA's Five-Year Capital Improvement Plan outlines over $15 million in improvements in the coming years. New improvement projects near you FGUA is in the last phases of pennltting approval for the construction of a wastewater deep injection well to help dispose of wastewater by-products. Once completed, this well at the Golden Gate Wastewater Plant site (Tropicana Blvd. & 32nd Ave.) will safely inject water waste nearly 3,500 feet underground-wel/ below drinking water sources. This common method of waste disposal is approved by all federal and state regulatory agencies. Customers may have noticed construction staging activities on the site, but construction isn't expected to begin until April. Public education and comment sessions begin soon. . 2007 budoet for the Golden Gate system . 2.QO~t for the Golden Gate system . \fIJat~Utu<ill\)' (Consumer Confidence) report for this system (updated in July each year) Golden Gate Community Services Representative: Dieudonne Thomas .E.rnalLG.olden Gate..Custom~ervice 407/629,6900 Telephone Community Services Manager: Yvette Hartsfield 407/629-6900 Telephone http://www.fgua.com!contents/GoldenGate.asp 10/20/2008 Board Home Customers Account Information Resources About Us Contact ... Back Forup-to-d.ate emergent)' & general Information about fOur water SJ'5t:e m, comact ynurCommunity ~ervt(l! Rl?presentative :>., Get the latest Issue! Olltl'atiorJs Office ;~B(~ Wl';kr1/;~ Sr_,n'lg:: H~! ~u:'!e 2C'(;'0 l (If''lfi''''i:J:1~111 ~/.. i'q 877: "5S2 30::.82 Emcutive Office ~ ;_')C:': "'lnl"-lln :':;;j .~.(,; 5~:-= 2C:.r:.': 1,::;IlM',rt~~'~1~ ;1. ~~:;~\()F. 8(":;'8%';'47 i~ ., mel;,.:tfl".,I.>>!.t ~ ;!l',..lr..;:, ;\,)Y.Kidl.......l 11~"'.~"'''' ...o;;~,..,..n~-":...X'" p?l~~J ~\"iE.D 5(-41': -0 _ ~(\ Agendal?~$ r~cP~ @C October :28. 2008 Page 57 of 106 I Systems I Records I RFPs & Bids I Development Info I Resources I Board I Customers I Board The FGUA Board: Putting You First The FGUA Board Members work hard to take care of your water needs. The Board is made up of local govemment representatives from participating counties, for a total of three regular members and three altemates. The FGUA's monthly Board meetings rotate between system locations throughout the year. Board members review and approve all FGUA business matters, from contract work plan authorizations to rate changes and long-terms plans. The System Manager and System Engineer attend each Board meeting, along with representatives from the FGUA's legal counsel. consu~ing engineers, and rate consultants. Each meeting includes a pUblic comment period for FGUA customers to ask questions and comment on issues that are important to them. All meetings are open to the public and we encourage you to attend the meeting dosest to you. Meeting schedules are set in advance, but dates and locations may change. Please be sure to check this web site at or give us a call at 877-552-FGUA (3482) before making travel plans. FGUA Board Members Lea Ann Thomas, Chairperson (Assistant County Manager, Polk County) Ms. Thomas received a BS from Aubum University, a Master of Education from Valdosta State University, and a Master of Public Administration from the University of Central Florida. She is a member of the Government Finance Officers Association (FGFOA) and the Florida City and County Management Association (FCCMA). She joined the Polk County Office of Management & Budget in 1989 as an Analyst and was promoted in t 995 to Director. In May 1997, she was promoted to the Assistant for Special Projects and is currentiy the Polk Assistant County Manager. Ms. Thomas began her tenure on the FGUA Board of Directors in 1 999. Brian Wheeler (Executive Director, TOHO Water Authority, Osceola County) Jim Lavender, Vice Chair (Public Works Director, Lee County) Mr. Lavender received his SA degree from Florida State University and began his career with Lee County in 1974. For the next 14 years. he held various positions with the county. In 1988, he was promoted to serve as the Construction and Design Department Director Mr. Lavender was appointed the Director of Public Works for Lee County in 2000. In this role, he assists the County Manager in implementing the policies and programs of the Board of County Commissioners as they relate to the departments of Transportation, Solid Waste, Utilities, Natural Resources, Construction and Design, and Facilities Management. Mr. Lavender Joined the FGUA Board of Directors in 2005. Robert Knight (Director of Water Resources, Citrus County) Charles C. Saddler (Town Manager, Town of Dundee) Michele Baker (Chief Assistant County Administrator, Pasco County) Shane Parker (County Engineer, Hendry County) Alternates Mike Johnson, Osceola County Douglas L. Meurer, PE, Lee County Bruce Kennedy, Pasco County Board Meetings . View a list of our ~QQQ meetin9.J>.ZQQ7 meet!Jl.9s, Dr uJli;Qmin9.2J!.MlD~eJmgJL . B!illI,L~L!b~.offjcialm.inutes from past meetings. . View the currenLf:~_UAS.tGlJegLc._Ei<!-". http://www.fgua.com!contents/Board.asp 10/20/2008 8 ': 3 RESOLUTIO~ ~O. 1)9- 169 RESOLUTIO~ :"0. C\\'S"l)9-_~ A Rr:SOLUTIO~ OF THE COI.I.lER COl.::\TY \YATER- SF"'("R DISTRICT I~ CO;\:\E('TIO:\ \\'1'1'11 TilE ACQUISITlO~ BY TilE FLORIDA (;()\'ER:\\lE~T,\1. L'TIUTY ,\l.:THORITY OF TilE GOLDI'::\' (;xn: LTlLlTY ~YSTE\t FRO;\1 A\'XL\I{ IIOLDI:\'(;S. 1\(',. ITS St'BSIDIARIES A:\'J) AFFlI.I.\TE E\TlTIES: '1.\1..:1\(; CERT:\Ii" :\CTIO~S I:\' (,O:\':\'1-:CTIO\ TIIElU:\\'rrll \\IIICII ARE :\'ECESS,\RY TO I'RESEI{\'F TilE DISTRICT'S OrTIO~. Bt'T :\'0 OBLlG:\TIO\ TO :\CQLJrRE TilE GOLDE:\' GATE lTILlTY SYSTE.\I OR TO :\SSU7\IE. AT A:"Y POI~T 1.'\ TIlE ITTLRE. I:\'DEIlTED:\'ESS OF THE AuTHORITY REL:\TU) TO SL'CII ACQL'ISlTIO:\ 0:\ PARITY A:\'D EQL\1. ST:\Tl;S \\Trll TilE DISTRICT'S SE:\'IOR I.JE:\' \\'XITR .\;\'1) SE\n:n RE\'E:\L'I': BO;\'DS: :\PPHO\'I:\(; "\.'\ I:\'TERLOC:\1. :\CREE\lE:\'T \\'1'1'11 TIlE FI.ORID,\ C;O\'I::R:'i\IF.:'.TAI. eTILlTY :\l.'TIIORITY: .\.'\1> PRO\'IDI:\C :\,,\ EFrECTI\'E DATE. WHEREAS. the Florid3 1.0c:l1 Go\'emment L'tility :\ulhnnly. a k~al cntity and puhlic hody org3nizeu and existing under thc laws oflhe Stale o( Flnrid;1 (lhe ":\lItlinrity"), was established pursuant 10 an Interlocal :\grecment d~lted as 01' Fchruary I, Jl)l)l), ;ll1lOllg Bn'::\'<Inl County. Florida. Ll'C Count)'. Florida. Polk ('OUllty, Flond;] :1111l S;lr;I~()t;1 t (lllllly. l:!orid:l rill' lhl: purpose of acquiJ'lng. ol\'ning. lrnpro\ing. nperating :lIld l11ainl:llnill.c' II ;tILT :lnd \\',tsll:wall:r utilily facilities: and \\'IIE.RE..\S.thc Authority has entcred Into an agrecl11cnt hI pUI'.::hase certain w;ller alld wastewater facilities. more cOl11l11only kIlO\\'Il;1S th~ (jpldcll (j:llC l..'lility Systcm (the "Coldcn Gate Utility Syst( .,,"). owned or controlled by :\\'al;lr Iloldings. llle. and its suhsidiaril.::s (":\ \':ltar"): and \\'IIERE..\S. thc BO:lrd arCounty CommisslOllcrs of('nlltcr ('oullty, Florid" (the "Collnty"). on hehalfofitsclrand as gO\'l'rning hody Oflhc C'llllll'r ('nunty Watcr-SC\\l..::r District (the "District"). dcsires to enter into an interlocal agreement (the "Interlm:al ..\grccmcnt") with the Authority relating to the aC4uisllinn of tile (;olden (,atc l'lillt: System: :'\O\\'. TIIEREFORE.. BE. IT RESOISE.D BY TlIE BOARD OF COUNTY CO\L\IISSIO:\ERS OF COI.LlER COU:"T's', FI.ORIDA. :$''1'1:,\(; 01" BEHALF OF ITSELF :\:'..-n AS THE EX-OFFICIO GO\'ER;";I~G BO:\Rl) OF TIlE COI.I.IER COUi'TY WATER-SEWER DISTRICT. as rollo\\s: SEeTIO:" I. FI:\DI:\'CS. 11 is herehy rutlnd and determll1.:d II1:\t: Agenda Item NO.1 OC Oetober 28, ~8 .~qe5~ of J 6 V' ~ ..J (:$ The AUlhority has II1fonncd thc Districllhat it intends to issue ils Llllily Ren:lluc Bonds (Golden Gate Litility Systcm). Series I C)1)C) (the "Bonds") for the Jlrilmry purpose of acqUIring thc Golden Gatc Utility System from/\v;1tar. (f3) Authority. :\t the present time. neither (he District nor the ('OUllty is a IIH:I11l1er oi"thc (Cl II is anticipated lhal the Authority will he ahle to Issue the Il()llds al lo\\' inlcrest rates. (D) The Authority has offered 10 structure thc BOllds with all optIon which I\'ill provide the Dislrict with the right. hut no ohlig3tion. to acquire the (Jolden Gatc Utility System through the assumption. at any Jloin! in the future. of the BC1IlJS Up011 the satisf;\Cliol1l1i' cerl:lin conditions set fllnh in an Indenture ofTrllst related tn such l3ol1ds (the "'ndCI111l1c"). at which roint in time the Bonus would hecomc indehtedness of the District all parity and equal statlls with the District's then outslanJing senior licn \\':ller and Sewer Re\'enue 130nds, and the (;olden Gate Ltility Systcm would then merge into the Distric('s W:Jter ;md Sc\\cr System. (E) Preser,ation of such ;ISSUrllrtiol1 right is dL'L'rllcd In Ill: in tilL' hl:s! il1krests or-tllc District :md the citizells o~thc COllllty. \\'ithout .~llch assumplion right. \\UL' Ihe Distrlcl 10 desire 10 aCljuire the Golden Gate Utility Systerll ill the future. thl: Districl wlluld han' to dl:ll:ase the Bonds tlJrnllgl1the rotenl ia I issuancc or indcl1lL'dncss in ;1 plllL'IIII:i11 y h I ~hl:r jilt cresl r:l(c environment. (F) 111 order to rrescr,e slIch assLlmption right. it is nccess;lry th:lllhe District 1;lke certain actions in cOl'nection with the ISSlI:Jnce oflhe Bonds (G) Thc District deems it nccessary to enter illlo Ihe IlllL:rl,x::d :\grl:l'llll:l1I \\ith the l\uthority relating to the acquisition of the Golden Gate Utili:y Systcm, SE.CTlO:\ 2. PRE.L1i\I1:\ARY OFFICL\L STATDIE:\T. Tile preparatiol1 alld distrihution of a Prcliminary Official Statcmel1l re);]ting to the Bonds and the assumption riglll or thc District is hercby approved and authorized. as is Ihc IIse thereorhy thc tJllllt:r\\'riler or \lnderwriters in conncction with the sale orthc t~onds ([he "l,'nderwriters") The distributioll (ll' the fin<ll Official St;r ~lllent relating to the Bonds is herehy aUlhori lcd, The Chairmall or the Board of County Commissioners of the County or the DIstrict IS hereby illlihori/el! to l:\l'cute and deli\'cr a ccnificJte of the COllIlty or the District which deems the Ini'ormation related to the County <lnd the District in the Preliminary Orricial Statement "1-ln;1j" \\ ithin the contemp!ation or Rule 15c2-12 ortlle Securities and Exchange Commission (thc "f\lIlc", SEeTIO:\ J. CO:'\T1:\LI:\G DISCLOSLRE. TI-,(' Diq;l>:t herehy CI1\Cl1illils a III I agrees that. in order 10 assist the Lndcn\Titcrs 111 complYing \\I\h tile cornin\lll1g l!lsclosurc requirements of the Rufc with respecl to the Bonds. it \\111 comply With ill1d C:lny o\ll ;111 o!'\he rrovisions ofa continuing disclosure cenllicate to he L'xcculed by thc District Jlriol" 10 the time the Authority delivers the Bonds to the Underwriters, as it may he amcnded '-rom timc to time in <lccordance wilh the lemlS thereor(thc "Continuing Disclosure CertIficatc"), The Chainnan is 2 Agenaa Item (\10. I October 28, 2008 pa~ 60 08103 hcrcby authl)ri/ed to execute and ddi\er sLlch Continuing Dis(I"SlIn: ('..:rlili(ale in slIhst;ll1li:1IIy the f0n11 provideJ in regJrd to the Dislrict's W:lter and Sewer l{ci'ul1ding r{C\'L'lllle l~l)lll'S, Scries )999:\. SECTIO:\ 4. APPRO\':\I. OF I:\TERI.OC\L "(;IU:E;\lE.YL 'J he.: flHm. terms .JIld provisions of the Intcrlocal Agreemcnt. suhmil1cJ at this meeting and allachc:d hcreto as hhihil A. he and the samc is hen:hy :lpproved, The Chainnan oCthe Bl);m!l)l' ('ollnly ('onlll1issillllClS (lhe "Board") an(~ ,..'-' ~'lcrk of the Board an: hcrL'hy a:lt!wri/ed ;lI1d dl~L'l'tL'd II) C\l'ClltL' ;1I1d deliver said Inlerloc;ll Agreement in the name ,1I1d nn hehalf nt' lhe DIstrICt, \\llh such lhan~L':;' amendments. modifications. omissions :Ind additions ;IS ;\PIHO\'L'd 11~' lilL' 1~":1rl1. F\CC\11illll 11:.- said Chaim1an shall he decmed to be conclllsil'e evidclKe o( appro', ,II or sllch (h;lngcs. amendments. modi lications. omissions and additions. SECTlO:\ 5. GL'\[R:\L At.:TIIORITY. The members o(thl'j3o;m/ of County Commissioncrs and the District's and the Counly's oflicers. altomeys and lllhcr ;lgcnls and employees arc IH:rchy authorized to perfOnll all aels and Ihin~s required o( thclll or dcsirahle or consistcnt with thc requircments hcreof for thc full. punctual and (I1JllpL:IC pCrfMlll:iIH:C or ;11101' thc ten11S. cmcnan{s and Jgreel11cnts cOlllained ill this Rl'sn!lIlll1n SECTlO:\ (j. EFFECTl\'[ DATE. Thi~ Rl'S\I!lltioll ~~1;l!! hCCOl11l' l'Ck-elile immediately upon its aooption. DCLY ADOPTF:D in RcgularSessiolllhis 'j-'C/..' oayof,\larell. I')l)'), COLLIER COL':\TY \\'..\TEH-SE\\'I':I{ DISTRICT (SEAL) ,. Alttst I~ to Cn'\j~,"', S1C)o1\6tun (>l'l1,y. ." I i .,J nv:___~_~.__n'_:'.::::~__,_,__ P A.\l EI.:\ S, .\1:\("1( II:, Chairwoman nl1ard of County C0l111l1issil1ners oi'Collier Cl1LJl1ty. Florid:!. aCl: ;lS the Ex-Orlicio Chair-Ioman of thl' (jmTrning Board of the ColliL'r COUllty \\'ak'r-Sc\\cr District ATTEST: -J~;: b.ehV~-/.7. D VIGHT E, BROCK. Clcrk 10 the Board of County Commissioners ofCollicr County, Florida, and as Ex.Offieio Clerk to the Go\'cming Board of the Collicr County Water-Se'\\'er District ~ .' i' --.., ~ "-.-..-, - QB ". 3 EXIIIUIT A lNTERLOCAL AGREEMENT RELATlj'I;(; TO TilE ACQUISITION OF THE GOLDEN GATE UTILITY SYSTEl\l Between FLORIDA GOVERNJ\IENTAL UTILITY AUTHORITY and COLUF:R COllNTY WATER-SEWER DISTRICT TIllS INTF:RLOCAL AGHEEl\lEJ"'iT, dated as of March J, I <)l)l) (lhc "fnterloc;J1 Agrccment"), by and bctween the FLORIDA GOVF:RNi\lENTAL UTILITY AUTHORITY, a legal cntity and pubJic body organi7.ed and existing undcr the laws of the Stale of Florida (the "Authority") and the COLLIER COUNTY WATF:R-SEWER DISTRICT (the "District"), each constituting a "public agency" undcr Pan! of Chapter 1 (,3. Florida Statutes (thc "lnterlocal Act"), WITNESSETH: WHEREAS, the Authority was established rursuant to an IntcrJocal Agrccment, daled ;JS of February 1, 1999 (the "lnterloeal Agrcement"), initially ;Jlllong 13rc\'an.l County, FlOrida; Lee County, Florida; Polk County, Florida; and Sarasota County. Florida for the purpose of acquiring, owning, improving, operating and maintaining water and W:lstcwatcr utility facilitics; and WHEREAS, pursuant to thc !ntcrloca\ Act, thc Authority has entered into an agrccment ~- October 28, ~08 ~aB 62 306 to purchase certain water and wastewater utility facilities ownctiJor controllcd hy Avatar Holdings, Inc. and its subsidiaries ("Avatar") and such utility facilitics include a water and wastewatcr utility !,ystcm locatcd in Collicr County, Florida (the "Counly") morc commonly known as the "Golden Gale" utility system ( the "Golden Gate Utility System"); and WHEREAS, the Authority will issue a serics of obligations known as thc "f1orida Governmental Utility Authority Utility Revenue Bonds (Goldcn Gatc Utility System), Scries 1999 (the "Bonds") for the principal purpose of acquiring thc Golden Gate Utility Systcm pursuant 10 an Indenture of Trust. dated as of March I, 1999 (lhc "Indenturc"), hy and bctwcen , the Authority and SunTrust, Central Florida, National Bank, a national hanking association; anti WHEREAS, the District has detennined that it docs not v,'ish to become a member of the Authority but would likc to prcserve certain options and abilitics concernillg the Golden Gate Utility System pursuant to the tenns and provisions hereinaf\er sct forth; NOW, THEREFORE. in consideration of thc forcgoing anti the covenants cOlltained herein, il is mutually agrced by and betwccn the District anti the Authority as follows: SECTION 1. ACQUISITION OF GOLDEN GATE UTILITY SYSTEl\l BY TilE DISTRICT. (A) The Po uthority hercby grants the District the right to acquire all. and Ilot less than all, of the assets, liabilities, obligations, and responsibilities relating to the Golden Gatc Utility System for so long as the Golden Gate Utility System is owned or controlled by the Authority, The tcnns and provisions of such acquisition shall be established rurs\lant to a utility acquisition agrecment between the Authority and the District. subject lo the temlS and conditions of the Interlocal Agreement and the Indenture. Notwithstanding the foregoing and unless otherwise 2 Agenaa Item NO..J., . Op!o~r 28, 2008 . Par-5 63 0306 agreed to by the Authority and the District, the purchase price for thc Goldcn Gate Utility Systcm shall be the amount required to repay the Bonds and any additional obligatiol1s of thc Authority relatcd with the Golden Gate Utility System. The District further agrccs 10 negotiate with the Authority for the payment of a pro-rata share of any reasonahle, verified Authority expenscs al the time of acquisition by the District. The District shall also pay all vcrifiablc expcnses associated with the transfer of the Golden Gate Utility System by the Authority \0 thc District. (8) Thc Authority herehy also grants the District the right to assume the Authori1y's obligations under the Bonds and the Indenture, all pursuant \0 the lemlS and conditions set forth in Article vIr of the Indenture. Any such assumption by the DIstrict shall take place simultaneously with thc transfer of the Golden Gatc Utility System from the Authority to the District. SECTION 2, OVERSIGHT OF RATES, FEES AJ\D CHARGES BY '1'111": COUNTY. The Authority hcreby agrees with the District Ihal the County, or the County's designee, shall havc thc rower to review and/or approve rates, fees amI charges relating to the Golden Gate Utility System in accordance with and to the exlent alloweu under Section 4.04 of the InterJocal Agreement. The County shall not have the powcr to approve any such rates, fces and charges in the event such rates, fees and charges have been established by the Authority in order to comply with covenants contained in thc Indenture, Thc County shall apply its ordinances and rules and regulations which pertain to watcr and wastcwater franchisl.: utilities in determining rates, fees and charges for the Golden Gatc Utility Syslem; however, the County and Authority acknowledge that certain rate-making principles are different for puhlic entities such as the Authority than for private entities, The County and the Authority shall enter into a separatc 3 l..l l) 0, L. Prje F4 of 1Lm' " r~ ~ .. interlocal agreemcnt with respect to the process to be followed in the review and approval of rates, fees and charges of the Golden Gate Utility System, Collier County Water Wastcwatcr Authority shall retain jurisdiction over customer complaints and olher related mal1crS so that the County shall retain its regulatory asscssment fees, SECTION 3. AMENDMENTS. This Interlocal Agreement may be amcnded In writing at any time by an interlocal agreement between the Authority and the District. SECTION 4. GENERAL PROVISIONS. (A) Except as specifically set forth herein. nothing herein shall hc deemed to authorize the delegation of any of the constitutional and statutory duties of the Sta:c of Florida, the Authority, the County. the District or any officers thereof, (B) A cory of this Interlocal Agreement shall bc filed In accordance with the provisions of the Interlocal Act. (C) l'cither the County nor the District shall in any manner be obligatcd to pay any debts, obligations or liabilities arising as a result orany actions oftne Authority, any Director, or any other agents, employees, officers, or officials of the Authority, except to the cxtcnt otherwise mutually agreed upon, and neither the Authority, the Directors, nor any other agents, employees, officers or officials of the Authority have any authority or power to othcT\\'ise obligate the County or the District in any manner. (D) In the event any provision of this Intcrlocal Agreement shall, for any reason, he determined invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, lhe other provisions of this lnterlocal Agreement shall remain in full force and effect. 4 _. .'_._~._......~...~ ...~~_._"_.___"'_" _... ~.~n_'_'_._u___ _....__......._.... RB 3 (E) This Interlocal Agreement shall be construed and go\'cmcd by the laws of the State of Florida. (F) Tlu;, llllerlocal Agreement shall be contingent upon delivery of thc Bonds by the Authority. SECTION 5. EFFECTIVE DATE. This Intcrlocal Agrcement shall become effcctivc on the latter of (a) the dated date hereof or (b) thc last date thc last of the parties herelo executes this lnterlocal Agreement and the filing requirements of Section 4(B) hereof are satisfied. IN WITNESS WHEREOF, this [ntcrlocal Agreement has been executcd by and on behalf of the Authority and the District by their authoriz.ed officcrs or officials ATTEST . ....l,\ u ,j' 4- . J' ~'. '~:~d~~~--; ;:p.1lZ Clerk, Board of County Commissioners " . ""'. of Collier Counry, Florida, and as EX- -:0 , ;/ Oillcio Clerk9f:the Governing Board of ~ ,:~ Collier Co~ti Water-Sewer District "I. ....\ -.' ~ . ~ttest'as~to'Ch&ira&n'S si~A~;onl~.' Approved as to Fonn and Legal Sufficiency: . ~ .',..... j II. ", FLORIDA GOVER1"1/J\1ENT AL UTILITY AUTHORITY By: Chairman ATTEST: Secretary- Trcasurer -End- 5 Agenda Item No, 1 DC October 28,2008 Page 66 of 106 March 9, 1999 CHAIRWOMAN MAC'KIE: April 20th in this room at 7:00. Item 18B3 RESOLUTION 99-169jCWS-99-1, APPROVING AN INTERLOCAL AGREEMENT BETWEEN FLORIDA GOVERNKENTAL UTILITY AUTHORITY AND COLLIER COUNTY RELATING TO THE POTENTIAL ACQUISITION OF THE GOLDEN GATE UTILITY SYSTEM - ADOPTED Next item is resolution for an interlocal agreement between the governmental -- that utility authority. COMMISSIONER CONSTANTINE: Move the item. COMMISSIONER NORRIS: Second. CHAIRWOMAN MAC'KIE: Discussion? All in favor, please say aye. Opposed? (No response.) CHAIRWOMAN MAC'KIE: Passes unanimously. MR. FERNANDEZ: Madam Chairwoman? COMMISSIONER BERRY: And I understand it's been addressed was the fact that we would be able to address the rates. MR. ILSCHNER: Yes. COMMISSIONER BERRY: Do you still maintain that? CHAIRWOMAN MAC'KIE: Never lose that. MR. ILSCHNER: Ed Ilschner, public works administration. Madam Chairwoman, that is correct. The water and sewer authority will have authority to review the rates that are charged by the Golden Gate utility system, and also will. receive their regulatory fees from that agency as well. Governmental utility authority. CHAIRWOMAN MAC'KIE: Mr. Fernandez? MR, FERNANDEZ: Madam Chairwoman, I just wanted to clarify for the record the intent of the motion is to adopt -- or to approve the interlocal agreement, the version that was handed to the commissioners this morning -- CHAIRWOMAN MAC'KIE: This morning. MR. FERNANDEZ: -- rather than the version that was in your packets. It addresses that point. And the language is much better in the more current agreement. COMMISSIONER CONSTANTINE: That is correct, CHAIRWOMAN MAC'KIE: And basically just keeping our options open with the crowd to participate. Page 56 ,Agenda Item NO.1 OC C4'J~~r ~8. ?~Q.a. r.;....& ~~~ RESOLUTION NO. 99- 169 RESOLUTION NO. CWS-99- 1 A RESOLUTION OF THE COLLIER COUNTY WATER- SEWER DISTRICT IN CONNECTION WITH THE ACQUISITION BY THE FLORIDA GOVERNMENTAL UTILITY AUTHORITY OF THE GOLDEN GATE UTILITY SYSTEM FROM AVATAR HOLDINGS, INC., ITS SUBSIDIARIES AND AFFILIATE ENT1TlliS; TAKING CERT AIN ACTIONS IN CONNECTION THEREWITH WHICH ARE NECESSARY TO PRESERVE THE DISTRICT'S OPTION, BUT NO OBLIGATION TO ACQUIRE THE GOLDEN GATE UTILITY SYSTEM OR TO ASSUME, AT ANY POINT IN THE FUTURE, INDEBTEDNESS OF THE AUTHORITY RELATED TO SUCH ACQUlSmON ON PARITY AND EQUAL STATUS WITH THE DISTRICT'S SENIOR LIEN WATER AND SEWER REVENUE BONDS; APPROVING AN INTERLOCAL AGREEMENT WITH THE FLORIDA GOVERNMENTAL UTILITY AUTHORITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Florida Local Government Utility Authority, a legal entity and public body organized and existing under the laws ofthe State of Florida (the "Authority"), was established pursuant to an Interlocal Agreement dated as of February 1, 1999, among Brevard County, Florida, Lee County, Florida, Polk County, Florida and Sarasota County, Florida for the purpose of acquiring, owning, improving, operating and maintaining water and wastewater utility facilities; and WHEREAS, the Authority has entered into an agreement to purchase certain water and wastewater facilities, more commonly known as the Golden Gate Utility System (the "Golden Gate Utility System"), owned or controlled by Avatar Holdings, Inc. and its subsidiaries (" Avatar"); and \VHEREAS, the Board of County Commissioners of Collier County, Florida (the "County"), on behalf of itself and as governing body of the Collier County Water-Sewer District (the "District"), desires to enter into an interlocal agreement (the "Interlocal Agreement") with the Authority relating to the acquisition of the Golden Gate Utility System; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, ACTING ON BEHALF OF ITSELF AND AS THE EX-OFFICIO GOVERNING BOARD OF THE COLLIER COUNTY WATER-SEWER DISTRICT, as follows: SECTION 1. FINDINGS. It is hereby found and determined that: Agenda Item NO.1 OC October 28, 2008 P.~091'99 (A) The Authority has informed the District that it intends to issue its Utility Revenue Bonds (Golden Gate Utility System), Series 1999 (the "Bonds") for the primary purpose of acquiring the Golden Gate Utility System from Avatar. (B) Authority. At the present time, neither the District nor the County is a member of the (C) It is anticipated that the Authority will be able to issue the Bonds at low interest rates. (D) The Authority has offered to structure the Bonds with an option which will provide the District with the right, but no obligation, to acquire the Golden Gate Utility System through the assumption, at any point in the future, of the Bonds upon the satisfaction of certain conditions set forth in an Indenture of Trust related to such Bonds (the "Indenture"), at which point in time the Bonds would become indebtedness of the District on parity and equal status with the District's then outstanding senior lien Water and Sewer Revenue Bonds, and the Golden Gate Utility System would then merge into the District's Water and Sewer System. (E) Preservation of such assumption right is deemed to be in the best interests of the District and the citizens of the County. Without such assumption right, were the District to desire to acquire the Golden Gate Utility System in the future, the District would have to defease the Bonds through the potential issuance of indebtedness in a potentially higher interest rate environment. (F) In order to preserve such assumption right, it is necessary that the District take certain actions in connection with the issuance ofthe Bonds. (G) The District deems it necessary to enter into the Interlocal Agreement with the Authority relating to the acquisition of the Golden Gate Utility System. SECTION 2. PRELIMINARY OFFICIAL STATEMENT. The preparation and distribution of a Preliminary Official Statement relating to the Bonds and the assumption right of the District is hereby approved and authorized, as is the use thereof by the underwriter or underwriters in connection with the sale of the Bonds (the "Underwriters"). The distribution of the final Official Statement relating to the Bonds is hereby authorized. The Chairman of the Board of County Commissioners of the County or the District is hereby authorized to execute and deliver a certificate of the County or the District which deems the information related to the County and the District in the Preliminary Official Statement "final" within the contemplation of Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"), SECTION 3. CONTINUING DISCLOSURE. The District hereby covenants and agrees that, in order to assist the Underwriters in complying with the continuing disclosure requirements of the Rule with respect to the Bonds, it will comply with and carry out all of the provisions of a continuing disclosure certificate to be executed by the District prior to the time the Authority delivers the Bonds to the Underwriters, as it may be amended from time to time in accordance with the terms thereof (the "Continuing Disclosure Certificate"), The Chairman is 2 f:.qenda Item NO.1 OC ~ October 28, 2008 Pa~ Of 90'999 hereby authorized to execute and deliver such Continuing Disclosure Certificate in substantially the form provided in regard to the District's Water and Sewer Refunding Revenue Bonds, Series 1999 A. SECTION 4. APPROVAL OF INTERLOCAL AGREEMENT. The form, terms and provisions of the Interlocal Agreement, submitted at this meeting and attached hereto as Exhibit A, be and the same is hereby approved. The Chairman of the Board of County Commissioners (the "Board") and the Clerk of the Board are hereby authorized and directed to execute and deliver said Interlocal Agreement in the name and on behalf of the District, with such changes, amendments, modifications, omissions and additions as approved by the Board. Execution by said Chairman shall be deemed to be conclusive evidence of approval of such ch~ges, amendments, modifications, omissions and additions, SECTION S. GENERAL AUTHORITY. The members of the Board of County Commissioners and the District's and the County's officers, attorneys and other agents and employees are hereby authorized to perform all acts and things required of them or desirable or consistent with the requirements hereof for the full, punctual and complete performance of all of the terms, covenants and agreements contained in this Resolution, SECTION 6. EFFECTIVE DATE. This Resolution shall become effective immediately upon its adoption. DULY ADOPTED in Regular Session this ~ day of March, 1999. COLLIER COUNTY WATER-SEWER DISTRICT (SEAL) ATTEST:. ',:~"'!, , ' .\.ll"'''l'!}" ~,. '" !)u ar.f~.n.' ';,< :,' '~'" ..,!~ ~,...-,..._~~..~.:..c/~.. ~:::~~..t~;.' ,.....,.....,....::<,.;,";t:',.\;;.~.:f'. ~.. ."'. '." .~ ...;. ~~"., -......JAP.~ ~., PHT E, BRO~,lerk to the =Board of County Co:rnm.issioners :Of Collier County,it$nda, and as Ex-Officio clerk'to t1Ie. ,G:6v~~g Board of the Couter C9Utl. .' :ty.,Water-Sewer District .. .~:_,c.... By: '.:' ": AMELA S, MAC'KIE ch' oman \: :",. ".. , .- - ......, ,...... . Board of COWlty Cornmissi ners of Collier"':.." ~ COWlty, Florida, and as tlik'Ex-Officio . : Chairwoman of the Goveri#.~h~Bo'~d ofth~ ':~ ./ Collier County Water-SewefPlstrict ',:', ;!t:> :,/' 1/.,,/ '.',:';!. ..-~ <.'......'_ ',\,,\\.. IJ~" lilt ~: : '. ~ \ \ ' Attest IS to 0.1"'.' s1gftature onl,. APPROVED AS TO FORM AND LEGAL SUFFICIENCY ~' A~ 4 OJ J1 David C Weige ~ County Attorney 3 Agenda Item No. 10C October 28, 2008 pa9ltAfto 1 ~61999 - EXHIBIT A INTERLOCAL AGREEMENT RELATING TO THE ACQUlSmON OF THE GOLDEN GATE UTILITY SYSTEM Between FLORIDA GOVERNMENTAL UTILITY AUmORITY and COLLIER COUNTY WATER-SEWER DISTRICT ,';oenda item ~Jo. 10C ~ October 28, 2008 Page 71 of 106 HAR 0 9 1P"" INTERLOCAL AGREEMENT RELATING TO THE ACQUISITION OF THE GOLDEN GATE UTILITY SYSTEM THIS INTERLOCAL AGREEMENT, dated as of March 1, 1999 (the "Interlocal Agreement"), by and between the FLORIDA GOVERNMENTAL UTILITY AUTHORITY, a legal entity and public body organized and existing under the laws of the State of Florida (the "Authority") and the COLLIER COUNTY WATER-SEWER DISTRICT (the "District"), each constituting a "public agency" under Part I of Chapter 163, Florida Statutes (the "Interlocal Act"). WIT N E SSE T H: WHEREAS, the Authority was established pursuant to an Interlocal Agreement, dated as of February I, 1999 (the "Interlocal Agreement"), initially among Brevard County, Florida; Lee County, Florida; Polk County, Florida; and Sarasota County, Florida for the purpose of acquiring, owning, improving, operating and maintaining water and wastewater utility facilities; and WHEREAS, pursuant to the Interlocal Act, the Authority has entered into an agreement to purchase certain water and wastewater utility facilities owned/or controlled by Avatar Holdings, Inc. and its subsidiaries (" Avatar") and such utility facilities include a water and wastewater utility system located in Collier County, Florida (the "County") more commonly known as the "Golden Gate" utility system ( the "Golden Gate Utility System"); and WHEREAS, the Authority will issue a series of obligations known as the "Florida Governmental Utility Authority Utility Revenue Bonds (Golden Gate Utility System), Series 1999 (the "Bonds") for the principal purpose of acquiring the Golden Gate Utility System Agenda Item No.1 OC OctofUD2a 2R0t999 Pag'e"r2~~Oo pursuant to an Indenture of Trust, dated as of March 1, 1999 (the If Indenturelf) , by and between the Authority and SunTrust, Central Florida, National Bank, a national banking association; and WHEREAS, the District bas determined that it does not wish to become a member of the Authority but would like to preserve certain options and abilities concerning the Golden Gate Utility System pursuant to the terms and provisions hereinafter set forth; NOW, THEREFORE, in consideration of the foregoing and the covenants contained herein, it is mutually agreed and understood by and between the District and the Authority as follows: SECTION 1. ACQUISITION OF GOLDEN GATE UTILITY SYSTEM BY THE DISTRICT. (A) Tbe Authority hereby grants the District the right to acquire all, but not less than all, of the assets, liabilities, obligations, and responsibilities relating to the Golden Gate Utility System for so long as the Golden Gate Utility System is owned or controlled by the Authority. The terms and provisions of such acquisition shall be established pursuant to a utility acquisition agreement between the Authority and the District, subject to the terms and conditions of the Interlocal Agreement and the Indenture. Notwithstanding the foregoing and unless otherwise agreed to by the Authority and the District, the purchase price for the Golden Gate Utility System shall be the amount required to repay the Bonds and any additional obligations of the Authority related with the Golden Gate Utility System. The District further agrees to negotiate with the Authority for the payment of a pro-rata share of any reasonable, verified Authority expenses at the time of acquisition. The District shall also pay all verifiable expenses associated with the transfer of the Golden Gate Utility System by the Authority to the District. (B) The Authority hereby also grants the District the right to assume the Authority's obligations under the Bonds and the Indenture (or any successor document thereto), ail pursuant 2 Agenda Item NO.1 OC Octola~ll;;.s 2008 Pa~ ll9Jt!999 to the terms and conditions set forth in Article VII of the Indenture. Any such assumption by the District shall take place simultaneously with the transfer of the Golden Gate Utility System from the Authority to the District. (C) Avatar has informed the Authority that it has determined any acquisition must be in lieu of condemnation and that its utility assets would not be for sale in the absence of a threat of condemnation. Therefore, the Golden Gate Utility System shall be deemed to be purchased for public purposes under threat and in lieu of eminent domain and condemnation by the District and/or the County as an alternative to the acquisition of the Golden Gate Utility System by the Authority, SECTION 2. OVERSIGHT OF RATES, FEES AND CHARGES BY THE COUNTY. The Authority hereby agrees with the District that the County, or the County's designee, shall have the power to review and/or approve rates, fees and charges relating to the Golden Gate Utility System in accordance with and to the extent allowed under Section 4.04 of the Interlocal Agreement. The County shall not have the power to approve any such rates, fees and charges in the event such rates, fees and charges have been established by the Authority in order to comply with the covenants contained in the Indenture (or any successor document thereto). The County shall apply its ordinances and rules and regulations which pertain to water and wastewater franchise utilities in determining rates, fees and charges for the Golden Gate Utility System; however, the County and Authority acknowledge that certain rate-making principles are different for public entities such as the Authority than for private entities. The County and the Authority shall enter into a separate interlocaI agreement with respect to the process to be followed in the review and approval of rates, fees and charges of the Golden Gate Utility System. 3 Agenda Item No. 10C OC~t$1f:6~9~~!99 SECfION 3. AMENDMENTS. This Interlocal Agreement may be amended in writing at any time by an interlocal agreement between the Authority and the District. SECTION 4. GENERAL PROVISIONS. (A) Except as specifically set forth herein, nothing herein shall be deemed to authorize the delegation of any of the constitutional and statutory duties of the State of Florida, the Authority, the County, the District or any officers thereof. (B) A copy of this Interlocal Agreement shall be filed m accordance with the provisions of the Interlocal Act. (C) Neither the County nor the District shall in any manner be obligated to pay any debts, obligations or liabilities arising as a result of any actions of the Authority, any Director, or any other agents, employees, officers, or officials of the Authority, except to the extent otherwise mutually agreed upon, and neither the Authority, the Directors, nor any other agents, employees, officers or officials of the Authority have any authority or power to otherwise obligate the County or the District in any manner. (0) In the event that any provision of this Interlocal Agreement shall, for any reason, be determined invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, the other provisions of this Interlocal Agreement shall remain in full force and effect. (E) This Interlocal Agreement shall be construed and governed by the laws of the State of Florida. (F) This lnterlocal Agreement shall be contingent upon delivery of the Bonds by the Authority, SECTION 5. EFFECTIVE DATE. This Interlocal Agreement shall become effective on the latter of (a) the dated date hereof or (b) the last date the last of the pa..-ties hereto executes 4 Agenda Item No, 10C October 28. 2008 PagEflfARfOC9 1999 this lnterlocal Agreement and the filing requirements of Section 4(B) hereof are satisfied. IN WITNESS WHEREOF, this Interlocal Agreement has been executed by and on behalf of the Authority and the District by their authorized officers or officials, COLLIER COUNTY WATER-SEWER DISTRICT (SEAL) f.\~ :""/11", \..... ,', "I ~.~ .. ',' ,. . JJS i .:.. 'I, , . '...L '.j-' 'I .~~ .......::l . ., (6,' ,~: ~<', '::;... By: .. J" .. ~~ ". ?~~ .~."~ B~dE;:C~~~:~~~i~~~t!~~o~'il;~~~::l County, Florida, and as th&~9mcio. i:,,:'$:;'!:.~ j ~..... 1-....... .'.1;.". l:fIIr..:-::s, ~ Chairwoman of the Govemn,.$.J:3oirJ~~~el$~~~~ Collier County Water-Sewer ~irG('()~:~~'t\:'"'. .. ':i:":'J':UJI :\~~\\. < ,. . t. A TT~1i~,:jlf' ., '~~"' '. "-.~..., J'lC>'. .....~',i ~- ~. ,- ""''': v"""I-~ .,,-...'" 't -,'" ~!"t~n~"'f'~'~~~' .....~. "~~"~ ~ ~~',. "::V-" ..<l. APPROVED AS TO FORM AND LEGAL SUFFICIENCY L-.J ~ti-~ David C. Weigel County Attorney '-. . ~i.b. ~GH'f K~~ J<.' erk to the :;~~Board of County ,~mmissioners t '~[.'~~~U~f,~o~n!i~~orida, and as Ex-Officio ..... ClerK...ofthe Gov~mg Board of the 'Co~}ier Cqih\ty,-W.. :)ater-Sewer District '~",!l::,~'~ , Attest 1$ to Chlir.an'S signature only_ FLORIDA GOVERNMENTAL UTILITY AUTHORITY By: Chairman ArrEST: Secretary- Treasurer h:ew/AgreementslI999/GUA interlocal 5 Welcome to the PSC Web Site The PSt (oDlmlnloners 11.11 The PSC's Role The Florida Public Service Commission is committed to making sure that Florida's consumers receive some of their most essential services - electric, natural gas, telephone, water, and wastewater - in a safe, affordable, and reliable manner, In doing so, the PSC exercises regulatory authority over utilities in one or more of three key areas: rate base/economic regulation; competitive market oversight; and monitoring of safety, reliability, and service, For more information on the services the Public Service Commission does and does not regulate, go to our brochure entitled When to Call the PSc. Customer Service Hearings Set for TEeO Rate Request Voew All News Rel~ I Available as RSS ClI ~S1 Pursuant to Section 668,6076, Florida Statutes, the Public Service Commission posts the following statement: Under FloTlda law, e-mail addresses are public records. If you do not want your e-mail address released in response to a public records request, do not send electronic mail to this entity, Instead, contact this office by phone or in writing, Hot Topics Get a Hurricane Plan Now! Have you ever wondered what all the wires and equipment on a utilitv pole are? What's on a Utility Pole? JJ. s....llel1ate EI1IT~C&mmitt~~Rt<y i~w_~ fIOJida's. Storm Bardening Initiatives Commissioner Edgar's Mav 13. 2008 testimony to the U,S. Senate Energy & Natural Resources Committee on the Impacts of Climate Change on the Reliability, Security, Economics, and Design of Critical Energy Infrastructure in Coastal Regions Energy Conservation House The PSC's Energy Conservation House is now available in both EI:Uili.:ill and ~.llih, Find energy savings by scanning through the items in the PSC's interactive Energy Conservation House. Here you will receive tips that may save you moncy. Electric Utilities' Ten- Year Site Plans Apply for Link-URElorid.!L!!.!Id Lifeline Q!):J1rt~ Customers of participating telecommunications providers can now apply for Link-Up and Lifeline Florida benefits on-line using the Euhlic Service CommissioQ~~,,-cure Qn-1ine. Application form (Version en Espanol esta disponible; Dokiman sa a an Kreyol tou), Transmission System Reliabilitv Report on Transmission Svstem Reliahilitv and R~3JlJm.sJ;-19_j:.D~I,gs:ll0- ContiQg.~.D.c.): Conditions in the State of Florid_!l (PDF Size = 3690KB) Elorida Disaster Recovery Fund _,:;,,; (~ Florida Disaster For further infonnation on making a donation to the Florida ~;....:.: RECOVERY FUND Disaster Recovery Fund click the following site: www,t1ahIJrrk<l.ne.funQm:g Storm Hardening AClivjti~1l http://www.psc.state.fl.us/ AgendaR~~No9~@C October 28, 2008 Page 76 of 106 PSC Homepage Navigation Menu Selected PSC Links . Overview and Key Facts . Mission Statement and Goals . StatemMlt of At:ency Organization and Ope@tiQ!!1l . jjj,ggl")' of the PSC . CQntact the PSC . Participate in cases . E-Filing Requirements . pubJicaciones en Espanol Commission Calendar Consumer Corner . En~_Conservation House . File your utility complaint ~)Jlline.., . Lifeline and Link-Up Florida . FCC's Natio!:lliLDo-Not-Cal] Regi~nc . Cpnsumer Tip of the Week . Ha~.~I1x-Ouestions? VisiUhe. Myfll!ri4a_CQnSllllJt<Lf AQ . Februarv Consumer Activitv Report (PDF file size ~ 270KB) Consumer Newsletter Enter your email address to sign up for, or remove yourself from, the PSC Consumer Newsletter: 1- d\Q~~~,"~ Visit the ConsumSL!;::1:~L~.;jJtl~ Page for archived issues. External Sites of Interest . PSC Nomjn;;l!!llLCmillCil . JoinLCQInmitteLQIlJ:SJ; Q~rsight Regulated Industries . Electric . J\ atural Gas . Telecommunications . Water and Wastewater 10121/2008 PSC Overview and Key Facts Agenda J?~~b9fGt October 28, 2008 Page 77 of 106 Overview and Key Facts The work of the Florida Public Service Commission is a balancing act. The Commission must balance the needs of a utility and its shareholders with the needs of consumers. Traditionally, the Commission achieved this goal by establishing exclusive utility service territories, regulating the rates and profits of a utility, and placing an affirmative obligation on the utility to provide service to all who requested it. For electric and water customers in the state, many of the Commission's traditional methods for achieving the balance continue today. Legislative action during the 1995 session to open up the local telephone market to increased competition, however, calls for the Commission to facilitate entry of new firms into the local telephone market, while at the same time ensuring that neither the new entrant nor the incumbent local exchange company is unfairly advantaged or disadvantaged. Section 364.01(4), F,S., calls for the Commission to exercise its jurisdiction to encourage and promote competition, The Commission's role in the increasingly competitive telephone industry remains one of balance. . jyhat Does_the P~SC Do? . YvTh~I)J2es the PSC Regulate? . How Are Y.J)ur Rate~Set? . How Are CommissioIler~Sek~l~d? . Pub!i~lDput . I~chnk1!LHearin~ . CommissioDJ1ecisions · How tQJ:'(}m<!~1J.h~ PSC What does the PSC Do? The Florida Public Service Commission is committed to making sure that Florida's consumers receive some of their most essential services -- electric, natural gas, telephone, water, and wastewater -- in a safe, affordable, and reliable manner. In doing so, the PSC exercises regulatory authority over utilities in one or more of three key areas: rate base/economic regulation; competitive market oversight; and monitoring of safety, reliability, and service issues. Who Docs the PSC Regulate'? During 2007, the PSC regulated five investor-o\vned electric companies, seven investor-ovvTIed natural gas utilities, and more than 160 investor-owned water and/or wastewater utilities. The PSC also has regulatory authority over one rate-base-reguJated telephone company and competitive market oversight for more than 1,250 telecommunications companies in the state of Florida. The number of certificated telecommunications companies or registered interexchange companies as of December 2007 were broken do\\'ll as follows: . 10 incumbent local exchange companies (ILECs) · 370 competitive local exchange companies (CLECs) · 576 interexchange companies (IXCs) http://www,psc.state.tl us/about! overview, aspx 10/21/2008 PSC Overview and Key Facts AgendaR@~NOOfac October 28, 2008 Page 78 of 106 . 233 pay telephone service companies (PATs) . 35 alternative access vendors (AA Vs) . 27 shared tenant service providers (STS) While the PSC does not regulate publicly owned, mWlicipal or cooperative utilities, it does have jurisdiction, with regard to rate structure, territorial bOWldaries, bulk power supply operations and planning, over 34 municipally owned electric systems and 18 rural electric cooperatives. The PSC also has jurisdiction, with regard to territorial boundaries and safety, over 27 mWlicipally owned natural gas utilities, and exercises safety authority over all electric and natural gas systems operating in the state. For information on services the PSC does and does not regulate, see our brochure entitled When to Call the PSc. How Are Your Rates Set? Whenever a jurisdictional rate-base-regulated gas, electric, telephone, water or wastewater company wants to change its rates, it must receive permission from the PSC. The PSC then investigates its request and sets new rate levels if the request is valid. The investigation is extensive, with many PSC staff members helping the Commission assess the company's request. The Public Service Commission has the responsibility to set rates that are fair, just and reasonable. It is also required to set rates to allow utility investors an opportWlity to earn a reasonable return on their investment. How Are Commissioners Selected? The Public Service Commission consists of five members selected for their knowledge and experience in one or more fields substantially related to the duties and functions of the Commission. These fields include economics, accoWlting, engineering, finance, natural resource conservation, energy, public affairs, and law. The Chairman is the chief administrative officer of the Commission, presiding at all hearings and conferences when present, setting Commission hearings, and performing those duties prescribed by law. In the Chairman's absence, the senior member of the Commission panel presides. The Chairman is elected by the Commission pursuant to law. The Governor appoints a Commissioner from nominees selected by the Public Service Commission Nominating Council. Commissioners must also be confirmed by the Florida Senate, Prior to 1979, three Commissioners were elected in a statewide election. The 1978 Legislature changed the Commission to a five-member appointed board. Public Input As part of its investigation in rate cases, the PSC often holds a customer hearing within the utility's service area, so that the Commissioners can hear from the public. Customers may comment or ask questions on the proposed rates or make any other statements relating to the utility's operations. The Public Counsel, who is appointed by the Florida Legislature, represents customers at rate case hearings. Technical Hearings http://www.psc.state.fl.us/about! overview ,aspx 10/21/2008 PSC Overview and Key Facts Agenda R~tJ:>pf OC October 28, 2008 Page 79 of 106 Following customer hearings, technical hearings similar to courtroom proceedings are held in which evidence is presented by expert witnesses in support of each viewpoint represented. Witnesses are cross-examined by the utility, intervenors, staff, and the Public Counsel's Office. This information is utilized by the Commission when it evaluates company requests. Commission Decisions The utility is required to justify all of its expenses for the operations of the utility. An expense that the Commission determines to be improper, imprudent, or unnecessary is disallowed and is excluded from the amount the utility is allowed to collect from customers. The Commission also looks at the amount utility stockholders have invested in utility plant and other facilities and allows a reasonable return on the investment necessary to provide good servlce. After all evidence is presented, the Commission reviews the record that has been developed and renders a decision. The decision it makes will determine the level of rates the company will be permitted to collect. Rates are calculated to generate revenues that allow a company the opportunity to earn the amount needed for the approved expenses plus the authorized return. However, there is no guarantee that the authorized return will be achieved. Once the final order is issued, the Commission's decision can be appealed to the state's appellate court system. How to Contact the PSC The Public Service Commission has staff who will assist you if you are unable to resolve a problem with your utility company. The PSC's Division of Regulatory Compliance and Consumer Assistance protects consumers from unjust utility practices and helps solve problems and answer questions. If you have a problem with your service, billing, or rates, first attempt to resolve it with the company. Then give that company adequate time to correct the problem, If you still need help, call the Division of Service, Safety & Consumer Assistance in Tallahassee. The consumer assistance number is 1-800-342-3552, or fax at 1-800-511-0809. Consumer assistance can also be obtained via E-mail at:~onta~J.@~.state.f1.us. Or write to the: Florida Public Service Commission, Division of Service, Safety & Consumer Assistance, 2540 Shumard Oak Boulevard, Tallahassee, Florida 32399-0850. An analyst will be glad to help you. Visit our Conta.ctInformalion page for directions to the PSC and more. Back to Ton http://www.psc.state.fl.us/about/ overview ,aspx 10/21/2008 Agenda Item No, 1 DC October 28, 2008 Page 80 of 106 When to Call The rlorlda Public Service Commission Many Floridians know that the state has a public utilities commission without really understanding what the agency does. Sometimes the responsibilities of the Florida Public Service Commission (PSC) can be confusing. To help consumers get action with their utility problems, this guide entitled "When to Call the Florida Public Service Commission" tells which utilities are regulated by the PSC. The guide also gives contact information for questions about or problems with non-regulated utilities. The PSC's professional staff helps consumers in solving various issues with their utility services. You can reach PSC Consumer Assistance at 1-800-342-3552, by email at: contact@psc.state.f1.us, or through the PSC Web site at www.f1oridapsc.com. flectric What the PSC J!eglllate~. Cont act the PSC LI Investor-owned electric companies such as Florida Power & Light Company, Florida Public Utilities Co" Gulf Power Co, Progress Energy, and Tampa Electric Co, o Rates and charges o Meter and billing accuracy o Electric lines up to the meter o Reliability of the electric service :J New construction safety code compliance fortransmis- sion and distribution o Territorial agreements and disputes o Need for certain power plants and transmission lines What the PSC Does Not 1!egulate o The level of rates and adequacy of services provided by municipally owned and rural cooperative electric utilities, except for safety oversight' o Electrical wiring inside the customer's building :::::J Taxes on the electric bill' LI Physical placement of transmission and distribution lines3 :::::J Damage claims o Rlghtofway' o Physical placement or relocation of utility poles. Natural (ias What the PSC Regulates, Contact the PSC :J Investor-owned natural gas companies such as Florida City Gas, Florida Division of Chesapeake Utilities Cor- poration, Florida Public Utilities Company, Indiantown Gas Company, Peoples Gas System, Sebring Gas Sys- tem, Inc" and St. Joe Natural Gas Company :J Basic service issues o Rates and charges LI Meter and biliing accuracy LI Pipeline safety issues including operations and construc- tion :J Territorial agreements and disputes What the PSC Does Not 1!egulate o Municipally owned natural gas utilities except for safety oversight3 [] Gas districts and authorities except for safety oversight o Liquid Propane (LP) Gas :J Taxes on the natural gas bill' o Damage claims n Gas pipeline siting' D House piping o Gas appliances n ~'IIIf'ltll~illlWlllllllt IIiIll!liiIrt lillll!lillJ!4Hllilllrnl;Hll\tIlWllI!'~lil\l.l;;ai""<!i,,;;;,,'H'~!>',;;,,;" '"i Agenda Item NO.1 OC October 28, 2008 Page 81 of 106 Water and Wastewater What 'ht' PSC Ut'RlIlates, Contact tilt' PSC c:J Investor-owned water and wastewater companies in 36 counties. c:J Rates and charges c:J Meter and billing accuracy c:J Certification and tenitory amendments c:J Quality of service What tht' PS(: Does Not I!eglllatt. c:J Municipally owned and county-owned water and waste- water utilities3 c:J Water treatment companies c:J Taxes on the water and wastewater bill" c:J Damage claims c:J Water clarity or pressure2 c:J Bulk sales of water or wastewater treatment c:J Water lines beyond the point of connection Telecommunications What the PSC I!egulater-., ('ontaci the PS(' 1"1 Ensure tariffed rates are charged for local telephone ser- vice and intrastate telephone calls c:J Ensure that incumbent telephone company rate in- creases comply with the statutes :l Service quality and reliability of I LECs, C LECs, and pay telephone providers 'J Network wiring up to and including the network interface device :l Telephone directory white page information such as poi- son control information 'J Distribution of telephone directories :1 Proper authorization of carrier change (slamming) 'J Cramming , Billing problems 'J Relay service ::J Pay telephone 0+ rate cap .., Pay per call disclosure :J Call aggregator (hotel) tent card Information and access to services 'J Shared tenant prOVider issues such as a tenant request- ing to be served directly by the LEC CJ Prepaid phone cards :J Number Portability What tilt' PS(' Doer-. Not I!eglllate C""J Wireless (cellular) telephone service' ::J Cable/Satellite television' ::J Interstate or intemational telephone service' ., Voice Over Intemet Protocol (VOIP) ::J Telephone wires on the customer's side of the interface box :J Rates for inside wire maintenance contracts :l Authorization of taxes on telephone bills. ::I Charges for pay-per-call (900 number) calls 'J Yellow Pages"'advertising ::J I ntemet service , Pay telephone rates for local calls ::J Solicitation calls7 ::J Harassing, threatening, or obscene calls. .., Damage claims :l DSL deployment c....,.....,..,....- ,- ,,::; ;l;\..~i:jj~:\,~t.'i;~.<.,~:~..;~.L_,,,,.:"'~..'.,:;.. " , . ;/.A~~s,,'~d:in:~!s TelE!co.rnmunications Section: __l_"" ,-- '.-,"_ '''\~''~b'''\ .. ,I.~EC lEC Cdm. ~titi.iieLoi$f~ . .' .. Com ~, '.. .."..",.angepany lncurntient lciCall:XchangeCompany . Local Exchange Compal'lY . 1. Federal Communications Commission Consumer & Governmental Affairs Bureau Consumer Complaints 44512'" Street, SW Washington, D, C. 20554 fccinfo@fcc,gov www.fcc,gov Toll Free: 1-888-CALL-FCC (1-888-225-5322) voice. 1-888- TELL- FCC (1-888-835-5322) TTY Consumer and Mediation Specialists are available Monday through Friday, 8 a,m, to 5:30 p,m, ET 2. Department of Environmental Protection Citizen Services 3900 Commonwealth Boulevard M,S. 49z Tallahassee, Florida 32399 850-245-2118 (phone); 850-245-2128 (fax) http.llwww.dep.state.fI.us 3. Contact your city or county commission to learn if it has juris. diction, 4. The PSC reviews the rate structure these utilities use to collect their costs, but has no jurisdiction over what costs are included in rates, Safety jurisdiction is limited to new construction and compliance with the National Electrical Safety Code. Contact the city utilities office or the Board of Directors of the Cooperative, 5, Contact the governmental entity that levied the tax, 6. To determine if you live in a jurisdictional county, check www.floridapsc.comorcaI/1-BOG-342-3552. 7. Florida Department of Agriculture and Consumer Services 2005 Apalachee Parkway Tallahassee, FL 32399-6500 1-B()()-435-7352 www.800helpfla.com 8, Contact your local law enforcement agency, 9. The PSC has the authority to require electric utilities to com- ply with safety and reliability regulations, Private electric utili- ties have the power of eminent domain to take property for just compensation to construct their facilities. Recourse for loss of property value as a result of the placement of electric facili- ties resides with the courts, Please note inquiries on services not regulated by the PSC and not footnoted should be initially forwarded to the service provider, ENROLLED 2003 Legislature Aoenda Item t'lio. 10C ~ October 28. 2008 Page 82 of 106 CS for CS for SB's 140, 998 & 1060 2nd Engrossed 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 An act relating to utilities; amending s. 163.01, F.S.; providing applicability of provisions relating to ownership and operation of utilities by entities composed of municipalities and counties; prescribing powers of counties and specified municipalities with respect to acquisition of water utilities and wastewater utilities by separate legal entities composed of municipalities and counties; authorizing the Public Service Commission to review the acquisition of a utility by two or more host governments; providing for a binding arbitration process under the Public Service Commission to resolve certain disputes relating to utility acquisition; authorizing the commission to adopt rules; requiring the Public Service Commission to establish rules that base CODING:Words std..ckel! are deletions; words underlined are additions. ,.'~i",lilUllIIl!lillllllllWiHl!lli;ttlii\lillijlffl;~~iiiO"llIlI_;jj#_";<i!l/!l;W"""""",':,"""~,,,,,,," 17 18 19 the acquisition price for a host government to acquire a utility on certain information; amending s. 120,52, F,S, i deleting an exception from the requirements of ch, 120, F.S., for an entity created under s. 163,01(7) (g)1., F.S.; amending s. 367.021, F,S,; excluding an entity created under s. 163.01(7) (g)1., F.S., from the definition of "governmental a\.ithority"; amending s, 367.071, F,S.; deleting a provision authorizing a utility to be sold or transferred prior to approval of the Public Service Commission with a contingency clause in the 20 21 22 23 24 25 26 27 28 29 30 31 1 Agenda Item NO.1 OC October 28, 2008 Page 83 of 106 ENROLLED 2003 Legislature CS for CS for SB's 140, 998 & 1060 2nd Engrossed 1 contract; providing severability; providing 2 effective dates. 3 4 Be It Enacted by the Legislature of the State of Florida: 5 6 Section 1. paragraph (g) of subsection (7) of section 7 163.01, Florida Statutes, is amended to read: 8 163.01 Florida Interlocal Cooperation Act of 1969.-- 9 (7) 10 (g)l. Notwithstanding any other provisions of this 11 section, any separate legal entity created under this section, 12 the membership of which is limited to municipalities and 13 counties of the state, may acquire, own, construct, improve, 14 operate, and manage public facilities, or finance facilities 15 on behalf of any person, relating to a governmental function 16 or purpose, including, but not limited to, wastewater 17 facilities, water or alternative water supply facilities, and 18 water reuse facilities, which may serve populations within or 19 outside of the members of the entity. Notwithstanding s. 20 367.171(7), any separate legal entity created under this 21 paragraph is not subject to Public Service Commission 22 jurisdiction, except when a host government specifically 23 requests binding arbitration services through the commission 24 under subparagraphs 4. and 5. and as is otherwise provided for 25 in general law. The separate legal entity and may not provide 26 utility services within the service area of an existing 27 utility system unless it has received the consent of the 28 utility. 29 2. For purposes of this paragraph, the term "utility" 30 means a water or wastewater utility and includes every person, 31 separate legal entity, lessee, trustee, or receiver owning, 2 CODING:Words stricker. are deletions; words underlined are additions. Aaenda item NO.1 OC ~ October 28, 2008 Page 84 of 106 ENROLLED 2003 Legislature CS for CS for SB's 140, 998 & 1060 2nd Engrossed 1 operating, managing, or controllinq a system, or proposing 2 construction of a system, who is providing, or proposes to 3 provide, water or wastewater service to the public for 4 compensation. For purposes of this paragraph, the term 5 "s stem" means each se arate water or wastewater facilitv 6 providing service. For purposes of this paragraph, the term 7 "host overnment" means either the of ::he 8 county, if the largest number of equivalent residential 9 connections currently served by a system of the utility is 10 located in the unincorporated area, or the governing body of a 11 municipality, if the largest number of equivalent residential 12 connections currently served by a system of the utility is 13 located within that municipality's boundaries. For purposes of 14 this paragraph, the term "separate legal entity" may mean any 15 entity created by interlocal agreement the membership of which 16 is limited to two or more municipalities or counties of the 17 state, but which entity is legally separate and apart from any 18 of its member governments, A separate legal entity that seeks 19 to acquire any utility must notify the host government in 20 writing by certified mail about the contemplated acquisition 21 not less than 90 days before any proposed transfer of 22 ownership, use, or possession of any utility assets by such 23 separate legal entity. The potential acquisition notice must 24 be provided to the legislative head of the qoverning body of 25 the host government and to its chief administrative officer 26 and must provide the name and address of a contact person for 27 the separate legal entity and information identified in s. 28 367.071 (4) (a) concerning the contemplated acquisition, 29 3. Within 90 days following receipt of the notice, the 30 host government may adopt a resolution to become a member of 31 the separate legal entity; adopt a resolution to approve the 3 CODING:Words stricken are deletions; words underlined are additions, Agenda Item NO.1 OC October 28, 2008 Page 85 of 106 ENROLLED 2003 Legislature CS for CS for SB's 140, 998 & 1060 2nd Engrossed 1 utility acquisition; adopt a resolution to prohibit the 2 utility acquisition by the separate legal entity if the host 3 government determines that the proposed acquisition is not in 4 the public interest; request in writing an automatic 45-day 5 extension of the 90-day period in order to allow sufficient 6 time for the host government to evaluate the proposed 7 acquisition; or take no action to agenda the proposed 8 acquisition for discussion at a public meeting, which shall be 9 construed as denial of the proposed acquisition. If a host 10 government adopts a prohibition resolution, the separate legal 11 entity may not acquire the utility within that host 12 government's territory without specific consent of the host 13 government by future resolution. If a host government adopts a 14 membership resolution, the separate legal entity must accept 15 the host government as a member before any transfer of 16 ownership, use, or possession of the utility or the utility 17 facilities on the same basis as its existing members. If a 18 host government does not adopt a prohibition resolution or an 19 approval resolution, does not provide a written request for an 20 extension of the 90-day notice period, and takes no action to 21 initiate judicial proceedings regarding the proposed 22 acquisition, the separate legal entity may proceed to acquire 23 the utility after the 90-day notice period without further 24 notice, except as otherwise agreed upon by the separate legal 25 entity and the host government. In utility acquisitions 26 involving two or more host governments, the Public Service 27 Commission shall consider whether the sale, assignment, or 28 transfer of the utility is in the public interest pursuant to 29 the provisions of s. 367.071(1). 30 4. In addition to the host government's right to 31 review as fair and reasonable the rates, charges, customer 4 CODING:Words stricker! are deletions; words underlined are additions. Agenja Item r..Jo. lOC October 28, 2008 Page 86 of 106 ENROLLED 2003 Legislature CS for CS for SB's 140, 998 & 1060 2nd Engrossed 1 classifications, and terms of service that will be in place at 2 the time of acquisition, the.;.host QiW6i;:I.~...tI!lae:'ba.-. the right to 3 review and approve as faiJlr,,;ana;,%:easonable' any later changes 4~sedd)y,:~the,sepa.rirt,'e:,,'legalent:i ty to the rates, charges, 5 customer'c:18.~ications, and terms of service, before 6 adopt'i"'Qn by th&separate' legal entity.' In acltU.t::i.Qn",,;the- host V government Mathe right to' review i~i~r~anv. changes to 8 the financing of such facilities wniCti'iria.j'; result in increased 9 costs to customers. Such rignecif"reVi:ettand approval by the 10 host government is. subject.ter<the;'obligaticn of the separate 11 legal erif:l'tyto estahl.ish:ratescana charges that comply with 12t:he..reqt'1i.~ts:<io~in any.. resolution or trust. U :ag:r;-.eement"':!te1~il:fngto::'tne' issuanoe of bonds to'"acquire,arid 14 ~,e;:thei;,affectedutili ty, and such, 'right does 'not. affect 15 the'ooligationof the separate legalf:eri.tity;;to:::._1::7'irates at a ~6 level..sufficient to pay debt servicft;;;,,QJ:1.its ..obl:igati'ons issued 17 in relation to the host governmentut't1:i.ty. .ZI1order to 1 B facilitate review of propo9ed:6~' by'Such host government, ~9 the separate legal entity":aro..t:~;.ftCSt:'ifythe bost government in 20 writ;:ing i:by"iCertified ..i l"ilbOiit~'~l:.tie proposed. changes . not .~ess 21 t1:Wi;'90:'da~~eore1':t}_lements anycmanges .Th$,.not~'Of 22 pX'oPOHa,ic~~es:; must be-provided to the 'leq~slati~~headof 23 the;-;~ingbody of each host g~ent and ,to its chief 24 admin1Strativeofficer and must provide. the name and address 25 of a contact person for the separate'legal entity and 26 information identified in.s:,:'361~.G8i:(2) (a) 1. as it applies to 27 publicly owned utilities about"t.he:. proposed changes. If after :2 8 review the host governmettt"be'tieVes that the proposed changes 29 are in the public interest, the host government may pass a 3 0 restilut1on-t1a.pproving fhf!proposed chcmges. If, after review, 31 th~'}bQstgovernlnent believes that the proposed 'changes are not 5 CODING:Words st:rickeb are deletions; words underlined are additions. Agenda Item No, 10C October 28, 2008 Page 87 of 106 ENROLLED 2003 Legislature CS for CS for SB'S 140, 998 & 1060 2nd Engrossed 11tt::the publie""iift'terest:.,""'the host government 1ftay enteXl into 2 negotiation with the separate legal,:~cf.ty eocr.eSo.1ve. those 3 COI'lCernB. If no~eemeat~::~hed 1t1thlh 30 dayS after the 4' bo&~~~. d:eGi~t10Rthat the proposed c.tw:1ges are 5 not,..'.1D;:,thepUbl1'c intereit, the ho.t."gQye~'i;_Y.:;;~t 'E) and, if requeete4, sball,~b!dti11'i'arli.Wt::ation services 7 through the Pu.bltb:.~rvice;,~~on to resolve the dispute 8 ,ft~.,:t.b.e'~aepa:r;:at.e,':1~~~;entity.Tbe commission shall develOp 9 and'at!QPtadmini.strative rules g~ the.,arbitration 1.,0 process and" ..stabl i sh1ng fMlIII;"fortbli..:X\iitpt:relit';;' r$$i:)l:ut ion 11 service, 12$?~J' '~':',the:;..cqQ;taition"'.or construction of any U uti.t~:sy.~:by a separate legal entity creft.'t.ed wi:DhV~ '14: subsection, re.venues or any other inec:Sin'e ma~~,be 15 transferred or paid to a member of a separate le9al'~ntity, or 16 to any other county or munic:i1p&1:i.1eY~' frcimuser fees or other 11 ~ges,;;or,..revenU~8i;9iIQ._t.ed'f:fi:llii' custOmetsthat are not 18 ~~l-f!;j;~dwfbhin: the jurf.dictlonal or servioe D. delivery bc>und&ties of the member, ;eomxty, or-~,murt.lcipa.lity 2lU reCeiving the transfer or Myment .'Anj':':tran.f'u:<,or':p&yttlent to 21 a member or other local ~errimen.e,';mu.t.'fbe' solely from user 22 fees or:othe.r chargeB"'..01".z:evenues generated from customers 23 ttiat.';;&re'";physically'lOCit$d within. the jurisdictionaI.;:ar 24'serV!ce~aell~l:3t boundaries of the tm!nIIber ork'lOcaJJ.government 25 receiving the transfer or .payment. 26 6. The host government is guaranteed the right to 27 acquire any utility or utility system that it hosts owned by 28 the separate legal entity. In those instances when the 29 separate legal entity and the host government cannot agree on 30 the terms and conditions of the acquisition, the host 31 government may request and, if requested, shall receive 6 CODING:Words stricken are deletions; words underlined are additions. Agenda Item NO.1 OC October 28. 2008 Page 88 of 106 ENROLLED 2003 Legislature CS for CS for SB's 140, 99B & 1060 2nd Engrossed 1 binding arbitration services through the Public Service 2 Commission to resolve the disputed acquisition terms. The 3 commission shall develop and adopt administrative rules 4 governing the arbitration process and establishing the fees 5 for these services. In developing and adopting its rules 6 governing the acquisition price for a given host government to 7 acquire the utility or utility system located within its 8 jurisdiction, the Public Service Commission shall, to the 9 greatest extent possible, base the acquisition price on the 10 same percentage to the total bonded indebtedness of the 11 separate legal entity upon acquiring the utility as the 12 acquired system's rate base was to the utility's total rate 13 base at the time transferred from a regulated utility to the 14 separate legal entity. This paragraph is an alternative 15 provision otherwise provided by law as authorized in s. 4, 16 Art. VIII of the State Constitution for any transfer of power 17 as a result of an acquisition of a utility by a separate legal 18 entity from a municipality, county, or special district. 19 7. The entity may finance or refinance the 20 acquisition, construction, expansion, and improvement of such 21 facilities relating to a governmental function or purpose 22 through the issuance of its bonds, notes, or other obligations 23 under this section or as otherwise authorized by law. Except 24 as limited by the terms and conditions of the utility 25 acquisition agreement, as approved by the applicable host 26 government, the entity has all the powers provided by the 27 interlocal agreement under which it is created or which are 28 necessary to finance. own, operate, or manage the public 29 facility, including, without limitation, the power to 30 establish rates, charges, and fees for products or services 31 provided by it, the power to levy special assessments, the 7 CODING:Words stricken are deletions; words underlined are additions. Agenda Item No, 1 DC October 28, 2008 Page 89 of 106 ENROLLED 2003 Legislature CS for CS for 8B's 140, 998 & 1060 2nd Engrossed 1 power to sell or finance all or a portion of such facility, 2 and the power to contract with a public or private entity to 3 manage and operate such facilities or to provide or receive 4 facilities, services, or products. Except as may be limited by 5 the interlocal agreement under which the entity is created, 6 all of the privileges, benefits, powers, and terms of s. 7 125.01, relating to counties, and s. 166.021, relating to 8 municipalities, are fully applicable to the entity. However, 9 neither the entity nor any of its members on behalf of the 10 entity may exercise the power of eminent domain over the 11 facilities or property of any existing water or wastewater 12 plant utility system, nor may the entity acquire title to any 13 water or wastewater plant utility facilities, other 14 facilities, or property which was acquired by the use of 15 eminent domain after the effective date of this act. Bonds, 16 notes, and other obligations issued by the entity are issued 17 on behalf of the public agencies that are members of the 18 entity. 19 8.27 Except as limited by the terms and conditions of 20 the utility acquisition agreement, as approved by the 21 applicable host government,any entity created under this 22 section may also issue bond anticipation notes in connection 23 with the authorization, issuance, and sale of bonds. The bonds 24 may be issued as serial bonds or as term bonds or both. Any 25 entity may issue capital appreciation bonds or variable rate 26 bonds. Any bonds, notes, or other obligations must be 27 authorized by resolution of the governing body of the entity 28 and bear the date or dates; mature at the time or times, not 29 exceeding 40 years from their respective dates, bear interest 30 at the rate or rates, be payable at the time or times; be in 31 the denomination; be in the form, carry the registration 8 CODING:Words st:ric:k{!:I< are deletions; words underlined are additions. Aaenda Item ~~o. 10C ~ October 28. 2008 Page 90 of 106 ENROLLED 2003 Legislature CS for CS for SB's 140, 998 & 1060 2nd Engrossed 1 privileges; be executed in the manner; be payable from the 2 sources and in the medium or payment and at the place; and be 3 subject to the terms of redemption, including redemption prior 4 to maturity, as the resolution may provide. If any officer 5 whose signature, or a facsimile of whose signature, appears on 6 any bonds, notes, or other obligations ceases to be an officer 7 before the delivery of the bonds, notes, or other obligations, 8 the signature or facsimile is valid and sufficient for all 9 purposes as if he or she had remained in office until the 10 delivery. The bonds, notes, or other obligations may be sold 11 at public or private sale for such price as the governing body 12 of the entity shall determine. Pending preparation of the 13 definitive bonds, the entity may issue interim certificates, 14 which shall be exchanged for the definitive bonds. The bonds 15 may be secured by a form of credit enhancement, if any, as the 16 entity deems appropriate, The bonds may be secured by an 17 indenture of trust or trust agreement. In addition, the 18 governing body of the legal entity may delegate, to an 19 officer, official, or agent of the legal entity as the 20 governing body of the legal entity may select, the power to 21 determine the time; manner of sale, public or private; 22 maturities; rate of interest, which may be fixed or may vary 23 at the time and in accordance with a specified formula or 24 method of determination; and other terms and conditions as may 25 be deemed appropriate by the officer, official, or agent so 26 designated by the governing body of the legal entity, However, 27 the amount and maturity of the bonds, notes, or other 28 obligations and the interest rate of the bonds, notes, or 29 other obligations must be within the limits prescribed by the 30 governing body of the legal entity and its resolution 31 delegating to an officer, official, or agent the power to 9 CODING:Words 5'::rL..kell are deletions; words underlined are additions. Agenda Item No, 10C October 28,2008 Page 91 of 106 ENROLLED 2003 Legislature CS for CS for S8's 140, 998 & 1060 2nd Engrossed 1 authorize the issuance and sale of the bonds, notes, or other 2 obligations, 3 ~~ Bonds, notes, or other obligations issued under 4 this paragraph subpa~agYa~l! 1.may be validated as provided in 5 chapter 75. The complaint in any action to validate the bonds. 6 notes, or other obligations must be filed only in the Circuit 7 Court for Leon County. The notice required to be published by 8 s, 75.06 must be published in Leon County and in each county 9 that is a member of the entity issuing the bonds, notes, or 10 other obligations, or in which a member of the entity is 11 located, and the complaint and order of the circuit court must 12 be served only on the State Attorney of the Second Judicial 13 Circuit and on the state attorney of each circuit in each 14 county that is a member of the entity issuing the bonds, 15 notes, or other obligations or in which a member of the entity 16 is located. Section 75.04(2) does not apply to a complaint for 17 validation brought by the legal entity. 18 10.~ The accomplishment of the authorized purposes of 19 a legal entity created under this paragraph is in all respects 20 for the benefit of the people of the state, for the increase 21 of their commerce and prosperity, and for the improvement of 22 their health and living conditions, Since the legal entity 23 will perform essential governmental functions in accomplishing 24 its purposes, the legal entity is not required to pay any 25 taxes or assessments of any kind whatsoever upon any property 26 acquired or used by it for such purposes or upon any revenues 27 at any time received by it. The bonds, notes, and other 28 obligations of an entity, their transfer and the income 29 therefrom, including any profits made on the sale thereof, are 30 at all times free from taxation of any kind by the state or by 31 any political subdivision or other agency or instrumentality 10 CODING:Words 5t~icken are deletions; words underlined are additions. ,';genda Item No, 10C October 28, 2008 Page 92 of 106 ENROLLED 2003 Legislature CS for CS for SB's 140, 998 & 1060 2nd Engrossed 1 thereof. The exemption granted in this subparagraph is not 2 applicable to any tax imposed by chapter 220 on interest, 3 income, or profits on debt obligations owned by corporations. 4 Section 2. Subsection (1) of section 120.52, Florida 5 Statutes, is amended to read: 6 120.52 Definitions.--As used in this act: 7 (1) "Agency" means: 8 (a) The Governor in the exercise of all executive 9 powers other than those derived from the constitution. 10 (b) Each: 11 1. State officer and state department, and each 12 departmental unit described in s. 20.04. 13 2. Authority, including a regional water supply 14 authority. 15 3. Board, 16 4. Commission, including the Commission on Ethics and 17 the Fish and wildlife Conservation Commission when acting 18 pursuant to statutory authority derived from the Legislature. 19 5. Regional planning agency. 20 6. Multicounty special district with a majority of its 21 governing board comprised of nonelected persons. 22 7. Educational units. 23 8. Entity described in chapters 163, 373, 380, and 582 24 and s. 186.504. 25 (c) Each other unit of government in the state, 26 including counties and municipalities, to the extent they are 27 expressly made subject to this act by general or special law 28 or existing judicial decisions. 29 30 This definition does not include any legal entity or agency 31 created in whole or in part pursuant to chapter 361, part II, 11 CODING:Words stLic~~ll are deletions; words underlined are additions. Agenda Item NO.1 OC October 28, 2008 Page 93 of 106 ENROLLED 2003 Legislature CS for CS for SB's 140, 998 & 1060 2nd Engrossed 1 an expressway authority pursuant to chapter 348, any legal or 2 administrative entity created by an interlocal agreement 3 pursuant to s. 163.01(7), except those created pursuant to s. 4 163.01(7) (g)1"unless any party to such agreement is 5 otherwise an agency as defined in this subsection, or any 6 multicounty special district with a majority of its governing 7 board comprised of elected persons; however, this definition 8 shall include a regional water supply authority. 9 Section 3. Subsection (7) of section 367.021, Florida 10 Statutes, is amended to read: 11 367.021 Definitions.--As used in this chapter, the 12 following words or terms shall have the meanings indicated: 13 (7) "Governmental authority" means a political 14 subdivision, as defined by s. 1.01(8), a regional water supply 15 authority created pursuant to s. 373.1962, or a nonprofit 16 corporation formed for the purpose of acting on behalf of a 17 political subdivision with respect to a water or wastewater 18 facility; however, this definition shall exclude a separate 19 legal entity created pursuant to s. 163.01(7) (g) 1. 20 Section 4. Subsections (1) and (4) of section 367.071, 21 Florida Statutes, are amended to read: 22 367.071 Sale, assignment, or transfer of certificate 23 of authorization, facilities, or control.-- 24 (1) ~ No utility may not sharr sell, assign, or 25 transfer its certificate of authorization, facilities or any 26 portion thereof, or majority organizational control without 27 determination and approval of the commission that the proposed 28 sale, assignment, or transfer is in the public interest and 29 that the buyer, assignee, or transferee will fulfill the 30 commitments, obligations, and representations of the utility. 31 IIoweve1:, a !:laIc., aS5ig!.[lleul, 01: tral<sfe.. of ":'ts ce:r:lificate of 12 CODING:Words stricke!. are deletions; words underlined are additions. Agenda Item NO.1 DC October 28 2008 Page 94 of 106 ENROLLED 2003 Legislature CS for CS for SB's 140, 998 & 1060 2nd Engrossed 1 Cl.ulLoJ: i~""L';'Ol., [c!l.c~l';'L';'eb 0.1. al.y f:JorL';'o." ;.l.c::.1.C::v[, 0.1. "I"") V.1.';' Ly 2 OI9Cl.ai",atiua""l euaL...ol ,,,ay oec.....!: pJ.ior to c:o",,"i,s6ior. Cl.f:Jf:Jlovd.l 3 if the contx<'act fox ,sale, a,sbigl.[,,<::;r.t I o~ t!:aa,sfer is ,,,ade 4 CO.L.lL~uge.l.J.L lwI..~vl.l. c.:OiHUli.w6':O~.L o..t:Jp..I...l...Jval ~ 5 (4) An application shall be disposed of as provided in 6 s. 367.045, except that: 7 (a) The sale of facilities, in whole or part, to a 8 governmental authority, as defined in s. 367.021(7) ,shall be 9 approved as a matter of right; however, the governmental 10 authority shall, prior to taking any official action, obtain 11 from the utility or commission with respect to the facilities 12 to be sold the most recent available income and expense 13 statement, balance sheet, and statement of rate base for 14 regulatory purposes and contributions-in-aid-of-construction. 15 Any request for rate relief pending before the commission at 16 the time of sale is deemed to have been withdrawn. Interim 17 rates, if previously approved by the commission, must be 18 discontinued, and any money collected pursuant to interim rate 19 relief must be refunded to the customers of the utility with 20 interest. 21 (b) When paragraph (a) does not apply, the commission 22 shall amend the certificate of authorization as necessary to 23 reflect the change resulting from the sale, assignment, or 24 transfer. 25 Section 5. If any provision of this act or the 26 application thereof to any person or circumstance is held 27 invalid, the invalidity does not affect other provisions or 28 applications of this act which can be given effect without the 29 invalid provision or application, and to this end the 30 provisions of this act are declared severable, 31 13 CODING:Words stxicle.r are deletions; words underlined are additions. Agenda Item No, 10C October 28, 2008 Page 95 of 106 ENROLLED 2003 Legislature CS for CS for S8's 140, 99B & 1060 2nd Engrossed 1 Section 6. Except as otherwise expressly provided in 2 this act, this act shall take effect upon becoming a law and 3 shall apply to all contracts pending on that date. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 14 CODING:Words 5t~ickell are deletions; words underlined are additions. .Agenda Item NO.1 OC October 28, 2008 Page 96 of 106 SENATE STAFF ANALYSIS AND ECONOMIC IMPACT STATEMENT (Ibis document is based on the provisions contained in the legislation as of the latest date listed below,) BilL: CS/SB's 140, 998 and 1060 SPONSOR: Senators Argenziano, Cowin, Constantine and others SUBJECT: Utilities DATE: March 17,2003 REVISED: ANALYST Herrin STAFF DIRECTOR Yeatman REFERENCE CP CU GO CM NR ATD AP RC ACTION Fav/Combined CS 1. 2. 3. 4. 5. 6. 7. 8. I. Summary: The committee substitute requires a separate legal entity created under s. 163.0] (7)(g)]., F .S., to provide written notice at least 90 days prior to the proposed acquisition of a utility or utility system to the host government. A "host government" is defined as the governing body of a county or municipality, depending upon where the majority of equivalent residential connections currently served are located, This committee substitute allows a host government within 90 days of receipt ofthe acquisition notice to adopt an approval resolution, adopt a prohibition resolution upon determining the acquisition is not in the public interest, or request in writing an automatic 45-day extension of time. Failure to agenda the proposed acquisition for discussion at a public meeting shall be construed as approval. Absent an approval or prohibition resolution from the host government, a written request for an extension of time or any action by the host government to initiate judicial proceedings, the separate legal entity may proceed with the acquisition. The host government may review and approve, as fair and reasonable, the rates, charges, customer classifications, and terms of service in place at the time of acquisition, This committee substitute also requires the Public Service Commission (PSC) to review the sale of a utility involving two or more host governments to determine if the sale is in the public interest. It also requires eaeh county regulating water and wastewater utility systems under s. 367.] 71, F .S., to eonsider whether the sale of utilities within its jurisdiction is in the public interest pursuant to county ordinances governing water and wastewater utility regulation, In addition, the committee substitute provides that a county with equivalent residential connections within its boundaries may review and approve, as fair and reasonable, later changes after the acquisition to rates, charges, customer classifications, and terms of service before BILL: CS/SB's 140, 998 and] 060T Agenda Item No, 10C October 28,2008 Page 97 of 106 Page 2 adoption by the separate legal entity. Such counties also have the right to review any changes in the financing of facilities that may result in increased costs to customers. The separate legal entity is required under this committee substitute to notify the county in writing 90 days prior to any later changes. A county, after receiving notice of the proposed changes, may pass a resolution approving the changes or enter into negotiations with the separate legal entity. If the parties are unable to reach agreement within 30 days, the PSC shall resolve the dispute through binding arbitration at the request of the county. In addition, the committee substitute allows a host government to acquire a utility within its boundaries from a separate legal entity and if the parties cannot reach agreement on terms and conditions of the acquisition, the host government may request binding arbitration through the PSC. The PSC is authorized to develop and adopt administrative rules governing the arbitration process and establishing fees for this dispute resolution service, as well as the resolution of disputes between the county and the separate legal entity regarding later changes to the rates, charges, and customer classifications. In developing its rules governing the acquisition price for a host government to acquire a utility, the commission is required, to the greatest extent possible, to base the acquisition price on the same percentage to the total bonded indebtedness of the separate legal entity upon acquiring the utility as the acquired system's rate base was to the utility's total rate base at the time it was transferred from a regulated utility to the separate legal entity . Further, the committee substitute provides that powers exercised by the entity under the terms of the interlocal agreement and the entity's issuance of bond anticipation notes may be limited by the terms and conditions ofthe utility acquisition agreement as approved by the applicable host government. This committee substitute deletes the exception for separate legal entities from the definition of "agency" as used in ch, ] 20, F ,S., the Administrative Procedure Act. Also, the committee substitute excludes a separate legal entity created under s. 163.01(7)(g)I., F.S., from the definition of "governmental authority" as used in ch. 367, F.S. The committee substitute deletes a provision in s, 367.07], F.S., that allows a utility to be sold or transferred contingent upon the approval of the PSc. Finally, the committee substitute provides a cross-reference in s. 367,071 (4), F.S., to the definition of "governmental authority" in s. 367.02] (7), F,S. This committee substitute substantially amends the following sections of the Florida Statutes: 163.01,120.52,367.02], and 367.071. II. Present Situation: The Florida Interlocal Cooperation Act of 1969 authorizes local governments to enter into interlocal agreements that allow these governmental entities to act more efficiently with regard to the provision of services and facilities. fn ]997, s. ]63.01, F.S., was amended to allow municipalities and counties to form a "separate legal entity" in order to: acquire, own, construct, improve, operate, and manage publie facilities, or finance facilities on behalf of any person, relating to a governmental function or purpose, including, but not limited to, wastewater facilities, water or alternative water supply BILL: CS/SB's 140,998 and 1060T ,t..genda Item r~o. 10C October 28, 2008 Page 98 of 106 Page 3 facilities, and water reuse facilities, which may serve populations within or outside of the members of the entity.! S, 163.0 1 (7)(g) 1., F.S., provides that a separate legal entity created under that paragraph is not subject to commission jurisdiction. However, s. 367.071 (4)(a), F.S., states that the sale of waste or wastewater facilities shall be approved, as a matter of right, by the Public Service Commission (PSC), After a separate legal entity has acquired a water utility, it is self-regulated with sole authority over rates and terms and conditions of service. State-imposed limitations on rates assessed to customers do not apply to a separate legal entity formed under s, 163.01, F.S., although the limitations apply to municipalities that own water utilities. Some local governments, not operating under s. 163,01, F .S., but operating as a governmental authority, own water utilities that serve customers within their territorial limits, Because government-owned utilities are self-regulated, they establish rates and terms of service for customers within their territorial boundaries. Customers residing outside the territorial limits of a local government may be assessed a surcharge of up to 50 percent of the rates, fees, and charges to customers residing in the local government's territorial boundaries. Private water utilities operate as monopolies because of the costs associated with construction and maintenance of infrastructure. A county has the discretion to regulate utility operations or subject the private water utility to the jurisdiction of the PSc.2 However, a county that retains jurisdiction over a private water utility must follow the same regulatory methodology as the commission.3 Any privately-owned utility that operates in more than one county is subject to the jurisdiction of the commission. The Office of the Public Counsel provides representation for customers in proceedings under s. 367,17] (8), F.S., before the commission and counties.41t is also important to note that a local government can aequire a privately-owned utility through direct negotiations or by exercising their power of eminent domain,5 The acquisition of a water utility by a separate legal entity may prove financially beneficial, assuming the utility is able to realize operating efficiencies and better meet capital expenditure needs.6 Because a separate legal entity is comprised of governmental authorities, the government-owned utility will enjoy some benefits that a privately owned utility would not. For example, the separate legal entity can issue tax-exempt bonds which reduces the cost of financing capital improvements, Tax-exempt bonds can be offered at lower interest rates and, therefore, reduces the associated debt financing costs by as much as 20 percent or more. These cost savings can be used either to meet outstanding capital expenditure requirements or passed on to customers in the form of reduced utility rates.7 J Ch. 97-236, L.O,F" codified as amended at s, ]63,01. F.S, c S. 367.17], Fla. Stat. (2002). The Department of Health and county health departments exercise regulatory authority over small water utilities serving fewer than 25 people, 3 S. 367.171(8), Fla, Stat. (2002), 4 S. 350.0611, Fla. Stat, (2002), The Public Counsel is appointed an attomey appointed by and serving at the pleasure of the Joint Legislative Auditing Committee. S, 350,061 (I), Fla. Stat. (2002), 5 Ss, 127.0!(])(a) and ]66.401(1), Fla. Stat. (2002), 6 OPPAGA, Special Examination, Report No, 02-67, at 4 (Dee, 2002) 7 See id BILL: CS/SB's 140, 998 and ] 060T Agenda Item No. 10C October 28, 2008 Page 99 of 106 Page 4 A separate legal entity may be exempt from certain state and local taxes. Section] 63,O](9)(c), F.S., provides that "all of the privileges and immunities from liability and exemptions from laws, ordinances, and rules which apply to the municipalities and counties ofthis state apply to the same degree and extent to any separate legal entity, created pursuant to the provisions of this section. . . ." However, the Ninth Judicial Circuit recently held that property owned by an entity created under s. 163.01, F.S" is subject to ad valorem taxation. This decision is on appeal. 8 A utility owned by a separate legal entity, unlike a privately-owned water utility, is also eligible for some federal and state fund programs. These programs assist water utilities with financing capital improvement needs necessary to meet environmental standards, the replacement of existing infrastructure, and the ability to increase capacity as needed to meet long-term growth , 9 requIrements. Efficiencies for utilities owned by a separate legal entity may also occur in the operation of these utilities, The 4,500 utilities providing water services in Florida confront similar challenges including increased regulatory requirements, a growth population, resource scarcity, and aging infrastructure,lO The economies of scale resulting from the consolidation of water utilities can provide lower prices and improved service for customers. Lower prices are achieved because of the larger customer base created by the consolidation of smaller water utilities which allows the owner of the utility to spread the costs associated with infrastructure, pumping, and treatment across a greater number of customers. Other operational efficiencies may include a centralized billing system and customer service. The separate local entity could also contract with a private company "to provide centralized operations and maintenance services for all utilities."t t Although the acquisition of a utility by a separate legal entity may have some economic advantages, there are also several possible disadvantages. There is a question as to whether the interests of customers residing outside the territorial limits of the local governments forming the separate legal entity will be fairly represented.12 Also, local governments may not be able to subsequently acquire a utility owned by a separate legal entity. The state and local governments may lose some tax revenues as a result of the acquisition. In addition, the separate legal entity may not consolidate operations effectively and will not realize the cost savings projected for these efficiencies. Even if the separate legal entity achieves cost savings through consolidation of operations, it is not clear those savings would be passed on to customers. 13 At the direction of the Joint Legislative Auditing Committee, the Offiee of Program Policy Analysis (OPPAGA) conducted a review of the Florida Governmental Utility Authority (FGUA), an intergovernmental authority or separate legal entity consisting of Citrus, Nassau, and Polk counties and created for the purpose of acquiring, financing, and operating water utilities,]4 8 See id 9 See id. at 5. One example ofa federal program is the Clean Water Act State Revolving Fund Program which provides low interest loans to government-owned utilities for water pollution control activities and facilities. 10 See id. at 5, II See id. at 6, 12 Customers of privately-owned utilities have representation through the regulatory process of the commission or the county. Customers of a government-owned utility, that reside within its territorial limits, have representation through their local government. 13 See id. at 4. 14 OPPAGA, Special Examination, Report No. 02-67, at 1 (Dec. 2002) BILL: CS/SB's 140, 998 and 1060T ,Agenda Item No, 10C October 28, 2008 Page 100 of 106 Page 5 OPPAGA's review of water utilities owned by an intergovernmental authority focused on the following issues: · The specific purpose of intergovernmental authorities as well as any public benefit derived therefrom; and · Whether intergovernmental authorities are sufficiently accountable to the public and customers; · Whether it would be sound public policy for the commission to have jurisdiction over an intergovernmental authority's services and rates; and · Alternative courses of action that would improve the accountability, efficieney, and economy of intergovernmental authorities. OPPAGA's review ofFGUA was prompted in part by its negotiations with Florida Water Services Corporation, a private entity with 156 utilities in 25 counties. IS Florida Water Services announced in September, 2002 that it would sell its utility systems to the Florida Water Services Authority, a separate legal entity comprised of the towns of Gulf Breeze and Milton, Florida,16 Numerous lawsuits were filed over the proposed acquisition and the PSC asserted jurisdiction to review whether the sale is in the public interest. The commission issued an order requiring Florida Water Services to file an application for approval of its proposed transfer to Florida Water Services Authority. I? Following issuance of the order, the commission sought and received temporary injunctive relief to delay the proposed sale pending further review by the commission, The First Distriet Court of Appeal refused to overturn the eommission's order delaying the sale.18 The intergovernmental authority, Florida Water Services Authority, announced its intention to finance and close the sale even if contrary to the commission's order. On March 7, 2003 in an order from the Circuit Court of the Second Judicial Circuit, the temporary injunction was continued.]9 Subsequently, Florida Water Services Corporation announced it would not sell its utility systems to the intergovernmental authority.2o Based on its review, OPPAGA recommended amending s. I 63,OI(7)(g)1., F,S., as follows to ensure that an intergovernmental authority is sufficiently accountable to the public and its customers: · Require the affirmative consent of the county or municipality where the majority of customers reside to be obtained as a condition of acquisition of a water utility by an intergovernmental authority. The requirement to obtain approval as a condition of purchase will provide greater accountability in these utility acquisitions because affected customers would be assured representation through their local government. · Authorize commission involvement over the rates and terms of service offered by a utility when agreement cannot be reached. The ability to request commission involvement in disputes over the rates and terms of service offered by a utility should be provided to any county with customers served by an intergovernmental authority. To ensure public participation, the administrative rulemaking process should be used to structure the process and determine the fee for dispute resolution services. 15 See id. !6 See Bridget Hall Grumet, Panhandle Towns Snap Up Utility Giant, St. Petersburg Times (Sept. 21, 2002), 17 See Florida Pub. Servo Comm'n, Order No. PSC-03-0193-FOF-WS (Feb. 7,2003). J8 See Carrie Johnson, Court Lets PSC Delay Water Deal, St. Petersburg Times (Feb. 14,2002). 19 See Florida Pub. Servo Comm'n V. Florida Water Servs, Corp., Order No, 20030022687 (Fla. 2nd Cir, Ct. Mar. 7,2003). 20 See Ludmilla Lelis, Utility Ends Dealto Sell to 2 S'mall Towns, Orlando Sentinel (Mar. 1],2003), BILL: CS/SB's 140, 998 and 1060T Agenda Item NO.1 OC October 28,2008 Page 101 of 106 Page 6 . Ensure that the county or municipality where the majority of customers reside is able to subsequently acquire utilities owned by an intergovernmental authority. In those instances when the authority and the county or municipality cannot agree on the terms and conditions of the acquisition, the applicable local government should be provided the right to redress through the commission. As with rates and terms of service disputes, the costs assessed to local governments should reflect the amount required to recover all associated costs, with the specific structure determined through the administrative rulemaking process. III. Effect of Proposed Changes: Section 1 of the committee substitute does the following: . Defines "utility" as a water or wastewater utility and includes every person, separate legal entity, lessee, trustee, or receiver owning, operating, managing, or controlling a system, or proposing construction of a system, who is providing, or proposes to provide, water or wastewater service to the public for compensation; . Defines "system" as each separate water or wastewater facility providing service. . Defines "host government" as the governing body of the county or municipality depending upon whether the largest number of equivalent residential connections currently served by the utility are located in an unincorporated area or within the municipality's boundaries; . Requires written notice via certified mail of a proposed acquisition of a utility by a separate lega] entity to be sent, not less than 90 days prior to any proposed transfer of ownership, to the legislative head of the governing body of the host government and to its chief administrative officer and to include the name and address of a contact person; . Provides that within 90 days after receiving notice of the proposed acquisition, the host government may adopt a resolution approving the acquisition; adopt a resolution prohibiting the acquisition based on a determination that the acquisition is not in the public interest; request in writing an automatic 45-day extension of the notice period to allow sufficient time for the host government to evaluate the proposed acquisition; or take no action to agenda discussion of the acquisition at a public meeting which shall be construed as approval: . Provides a separate legal entity, after the host government has adopted a resolution prohibiting the entity's acquisition ofa utility, may not acquire a utility within that host government's jurisdiction without its specific consent by future resolution; . Provides the separate legal entity may proceed with the acquisition after the 90-day notice period without further notice if the host government does not adopt an approval resolution or a prohibition resolution, make a written request for an extension oftime, or take action to initiate a judicial proceeding; . Requires the Public Service Commission (PSC) to review the sale of a utility involving two or more host governments to determine if the sale, assignment, or transfer of the utility is in the public interest; . Requires each county regulating water and wastewater utilities or systems under s. 367.17], F.S., to consider whether the sale of a utility or utility systems within its jurisdiction is in the public interest pursuant to county ordinances governing water and wastewater utility regulation; and BILL: CS/SB's 140, 998 and 1060T t\genda Item NO.1 OC October 28, 2008 Page 102 of 106 Page 7 · Provides a host government may review and approve, as fair and reasonable, the rates, charges, customer classifications, and terms of service in place at the time of acquisition. After the proposed acquisition is complete, the committee substitute requires the separate legal entity to send written notice via certified mail of later changes to any county with equivalent residential connections from that utility located within its boundaries not less than 90 days prior to implementation of those changes. The notice must be sent to the legislative head of the governing body of each affected county and to its chief administrative officer and include the name and address ofa contact person as well as information identified in s, 367.081(2)(a)1., F.S., as it applies to publicly-owned utilities. In response to the notice of proposed changes, the committee substitute allows a county to do the following: · Review and approve as fair and reasonable any later changes proposed by the separate legal entity to the rates, charges, customer classifications, and terms of service, before the changes are adopted by the separate legal entity; · Review and approve any ehanges to the financing of facilities which may result in increased costs to customers, although this review is subject to the entity's obligation to establish rates and charges that comply with requirements contained in a resolution or trust agreement relating to the issuance of bonds to aequire and improve the utility; · Allows the county to pass a resolution approving the changes; and · Allows the county, if it believes the proposed changes are not in the public interest to enter into negotiations with the separate legal entity and, if unable to reach agreement with 30 days, to request binding arbitration through the PSc. In addition, this section of the committee substitute allows a host government to acquire any utility or utility system within its boundaries that is owned by a separate legal entity and to request binding arbitration if the parties cannot reach agreement on the terms and conditions of the acquisition. The committee substitute also authorizes the PSC to develop and adopt administrative rules governing the arbitration process and establishing fees for this dispute resolution service, as well as for binding arbitration services when requested by an affected county concerning a dispute over a separate legal entity's proposed changes, after the acquisition of a utility, to the rates, charges, customer classifications, and terms of service. This committee substitute requires the PSC, in developing rules governing the acquisition price for a given host government to acquire a utility within its boundaries, to base the acquisition price, to the greatest extent possible, on the same percentage to the total bonded indebtedness of the separate legal entity upon acquiring the utility as the acquired system's rate base was to the utility's total rate base at the time transferred from a regulated utility to the separate legal entity. Also, the committee substitute provides that the amended paragraph operates as a general law, under s. 4, Article VIII of the State Constitution, allowing for the transfer of power as the result of an aequisition of a utility or utility system by a separate legal entity from a municipality, county, or special district. Finally, this section of the committee substitute provides that powers exercised by the entity under the terms of the interlocal agreement and the entity's issuance of bond anticipation notes may be limited by the terms and conditions of the utility acquisition agreement as approved by the host government, BILL: CS/SB's 140,998 and 1060T Agenda Item NO.1 OC October 28,2008 Page 103 of 106 Page 8 Section 2 of the committee substitute deletes the exception for a separate legal entity from the definition of "agency" for the purposes of ch, 120, F .S., the Administrative Procedure Act. Section 3 amends s. 367.021, F.S" to exclude a separate legal entity created under s, 163,OI(7)(g)1., F.S., from the definition of "governmental authority." Section 4 amends s. 367.071, F .S., to delete a provision that allows a utility to be sold or transferred prior to the approval of the PSC if the contract for sale is contingent upon PSC approval. Section 5 provides the committee substitute shall take effect upon becoming a law. IV. Constitutional Issues: A. Municipality/County Mandates Restrictions: None. B. Public Records/Open Meetings Issues: None. C. Trust Funds Restrictions: None. V. Economic Impact and Fiscal Note: A. Tax/Fee Issues: None. B. Private Sector Impact: A separate legal entity may provide customers with lower rates and more efficient service because of the economies of scale that result from the consolidation of water utilities. Presently, the entity is not required to pass along any savings achieved as the result of consolidation to its customers in the form of lower rates. C. Government Sector Impact: Ownership of the utility by a separate legal entity may provide some financial benefits for the local governments that form the authority. Member governments ofthe authority may benefit from increased net revenues achieved, in part, because of the savings realized from the issuance of tax-exempt bonds, possible exemption from some state and federal taxes, and being eligible for certain state and federal funding programs. However, the acquisition of a utility by a separate legal entity may also result in state and local governments losing some annual tax revenues. BILL: CS/SB's ] 40, 998 and] 060T Agenda Item NO.1 OC October 28. 2008 Page 104 of 106 Page 9 VI. Technical Deficiencies: None. VII. Related Issues: None. VIII. Amendments: None. This Senate staff analysis does not reflect the intent or official position of the bill's sponsor or the Florida Senate, Agenda Item No, 10C October 28, 2008 Page 105 of 106 Journal of the Senate Number 3-Special Session C Monday, July 21,2003 CONTENTS Proclamation .,.,.",....,.,.".,.'.,.,.,....',....,.. 23 Vetoed Bills ....,..,.....,.",.."..,.,..",..,....... 23 PROCLAMATION State of Florida Executive Office of the Governor Tallahassee TO THE HONORABLE MEMBERS OF THE FLORIDA SENATE AND THE FLORIDA HOUSE OF REPRESENTATIVES: WHEREAS, on June 27, 2003, I called a Special Session commencing at 12:00 p.m. on Wednesday, July 9, 2003, and extending through 11:59 p.m. on Wednesday, July 16, 2003; and WHEREAS, the purpose of this Special Session was to convene the Legislature for the sole and exclusive purpose of considering legislation relating to the recommendations of the Governor's Task Force on Healthcare Professional Liability Insurance, and issues related to medi- calliability reform; and WHEREAS, it is in the best interest of the people of the State of Florida to extend this Special Session; NOW, THEREFORE, I, Jeb Bush, Governor of the State of Florida, by virtue of the power and authority vested in me by Article III, Section 3(c)(1), Florida Constitution, do hereby proclaim as follows: The length of the Special Session originally called for July 9, 2003 is extended until 7:00 p,m. on Monday, July 21, 2003, The Proclamation of June 27, 2003 is incorporated herein by reference. IN TESTIMONY WHEREOF. I have hereunto set my hand and caused the Great Seal of the State of Florida to be affixed to this Proclamation extended the Legislature in Special Session at the Capitol, this 16th day of July, 2003. Jeb Bush GOVERNOR ATTEST: Glenda E. Hood SECRETARY OF STATE MESSAGES FROM THE GOVERNOR AND OTHER EXECUTIVE COMMUNICATIONS VETOED BILLS 2003 REGULAR SESSION The Honorable Glenda E. Hood Secretary of State July 15, 2003 Dear Secretary Hood: Senate Bill 140 addresses the acquisition of a water and wastewater utility by t'vvo or more local governnlents incorporated a:3 a ~efJarate legal entity serving populations outside of the jurisdiction of the founding member governments, The sponsor of this legislation has made a good faith attempt to address the issue of regulating and providing local control of interlocal govern- mental purchases of water and wastewater facilities. Clearly, the legis- lation is well intended, However, the bill goes beyond what is necessary to achieve this goal. As well, it creates significant regulatory uncertainty in the future, First, it is reasonable for host governments to be concerned by the lack of accountability of intergovernmental activities in providing utility ser- vices, In this regard though, the bill allows the host government to have incredible control over water and wastewater facilities in their area. Under this legislation, the host government would have rate setting ability, approval of sale and price, and regulatory jurisdiction over this entity. Unfortunately, this authority allows the host government with the ability, whether intentional or not, to lower the value of the facility prior to purchase, The Public Service Commission (PSC) currently has the jurisdiction and authority to determine if these transactions are in the public interest, Just as they regulate the purchase of a Florida facility by an out-of-state purchaser, so the PSC has the ability to regulate the purchase by an in- state interlocal entity. This ability was affirmed in a recent court hear- ing. Second, there are property rights concerns in the bill, The bill may jeopardize private property rights by imposing a less than adequate acquisition price and by conferring the right to acquire utilities from intergovernmental entities on host governments. Regulation is neces- sary in these matters to provide necessary safeguards and protections for consumers, but this bill has far reaching implications beyond the negation of one intergovernmental transaction. I share the concerns of the sponsor of the legislation. In general, I am troubled by the tax-exempt status of an interlocal governmental entity heing used to compete with the private sector, since they do not enjoy the same tax advantage. Government's role should be limited; extrajurisdic- tional purchases are contrary to this principle, Florida must have a comprehensive approach in order to provide for future water needs. Over tlw coming months, I plan to work with the sponsor of this bill, member, of the PSC, the Secretary of the Depart- ment of Environmental Protection, the Secretary of the Department of Community Affairs, local governments, and other stakeholders to ad- vance a comprehensive strategy for the regulation of an invaluable, limited resource, For these reasons, I do hereby veto Senate Bill 140. Sincerely, Jeb Bush, Governor The Honorable Glenda E. Hood Secretary of State July 14, 2003 Dear Secretary Hood: By the authority vested in me as Governor of Florida, under the provi- sions of Article III, Section 8, of the Constitution of Florida, I do hereby withhold my approval of Senate Bill 2042, enacted during the 35th Session ofthe Legislature of Florida convened under the Constitution of 1968. While I appreciate and support efforts by the Legislature to honor the late Senator George Kirkpatrick, establishing a state reserve around Rodman Reservoir undermines efforts to restore a more natural flow of water to the Ocklawaha River-once considered one of America's most beautiful and pristine waterways. In 2000, I endorsed a plan to partially restore the Ocklawaha River. I remain steadfast in that commitment, 23 24 JOURNAL OF THE SENATE Agenda Item r-Jo, 1 DC October 28. 20G8 P agwiuy cZl~:::eo03 Background The proposed state reserve encompasses 28,000 acres of state and fed- eralland, including Kirkpatrick Dam and Rodman Reservoir, Under a lease from the Board of Trustees of the Internal Improvement Trust Fund, the Department of Environmental Protection's Office of Green- ways and Trails manages the area as part of the Marjorie Harris Carr Cross Florida Greenway State Recreation and Conservation Area, The federal government, specifically the United States Forest Service, owns approximately one-third of the land beneath the Kirkpatrick Dam and about 550 acres of land under the 9,600-acre Rodman Reservoir, The Kirkpatrick Dam, formerly known as the Rodman Dam, was built by the Army Corps of Engineers as part of a comprehensive plan to construct the Cross Florida Barge Canal, a man-made waterway de- signed to cut across the state's peninsula and link the Atlantic Ocean with the Gulf of Mexico, Completed in 1968, the dam blocked a 16-mile stretch of the Ocklawaha River-flooding 7,500 acres of forest and land and creating the Rodman Reservoir in the process, Three years later, President Richard Nixon halted the project, and in 1990, President George Bush de-authorized construction of the canal. The following year Florida designated a 1I0-mile corridor within the defunct barge project for conservation and recreation. The Legislature required a management plan for the newly created Cross Florida Green- way that included final disposition for the canal works at Rodman Reser- voir. In 1992, the Governor and Cabinet approved a management plan to partially restore the Ocklawaha, The Legislature adopted the manage- ment plan, but required additional study of three other proposed op- tions-total retention of the reservoir, total restoration of the Ock- lawaha and partial retention of the reservoir. In 1995, the complete study echoed the earlier recommendation of partial restoration. In 2000, I directed the Department to proceed with partial restorat.ion, Applications for necessary state and federal permits were filed and re- main pending, Last year, Florida did not renew a special use permit with the Cnited States Forest Service for use of the national forest lands that include portions of F'..irkpatrick Dam, Rodman Hescrvoir and Eureka Lock and Dam. Under the terms of the permit, Florida was required to complete partial restoration of the Ocklawaha River by 2006, Benefits of Restoration Breaching the dam and releasing the water will reestablish the mean- dering route of the river, which gives rise to as many as 20 freshwater springs in the region, Restoration may bring back as many as 13 species of fish that once called the river home. Manatees will once again have unrestricted access to warm water springs. The banks of the Ocklawaha River will provide miles of habitat for the wildlife, such as the endan- gered Florida Black Bear. A free flowing river will continue to provide recreational opportunities, including fishing and paddling, that are critical to tourism and the local economy, Honoring a Great Public Servant To honor Senator Kirkpatrick, the Department of Environmental Pro- tection obtained approval from the Florida Historical Commission to name the Rodman Reservoir recreational area in Putnam County as the George Kirkpatrick State Reserve, The dam at the reservoir was named in honor of Senator Kirkpatrick in 2001. He served the people of Central Florida in the Legislature for two decades and establishing the George Kirkpatrick State Reserve would be a tribute to his life, his achieve- ments and his memory, I understand that Senator Kirkpatrick's family would prefer that re- naming the Rodman Reservoir recreational area as the George Kirkpat- rick State Reserve be accomplished through the Florida Senate. I want to assure the Kirkpatrick family that, at their request, renaming the reserve through the Florida Historical Commission remains a viable option. Sincerely, ,Jeb Bush, Governor The bills, together with the Governor's objections thereto, were referred to the Committee on Rules and Calendar, CORRECTION AND APPROVAL OF JOURNAL The Journal of July 11 was corrected and approved, ADJOURNMENT The Senate did not reconvene so the Special Session adjourned sine die at 7:00 p,m.. Monday, July 21.