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Agenda 12/10/2024 Item #16A11 (Resolution authorizing the transfer of the facilities of the North Macro Utility Company Inc. to City of Marco Island and canceling Franchise Certificate 02S, pursuant to Ordinance No. 96-6)12/10/2024 Item # 16.A.11 ID# 2024-2029 Executive Summary Recommendation to adopt a resolution authorizing the transfer of the facilities of the North Marco Utility Company Inc. to The City of Marco Island and canceling Franchise Certificate 02S, pursuant to Ordinance No. 96-6, the Collier County Water and Wastewater Utilities Regulatory Ordinance. OBJECTIVE: To have the Board of County Commissioners ("Board") authorize the transfer and control of the facilities of the North Marco Utility Company Inc. to the City of Marco Island pursuant to Ordinance No. 96-6, the Collier County Water and Wastewater Utilities Regulatory Ordinance. CONSIDERATIONS: Section 367.171, Florida Statutes, authorizes the Board to regulate private water and sewer utilities in unincorporated Collier County to protect public health, safety, and welfare. Ordinance No. 96-6 states the Executive Director of the Collier County Water & Wastewater Authority ("Authority") makes recommendations to the Board concerning the regulation of utilities. The Collier County Water and Wastewater Authority, a quasi-judicial board, is a five-member authority that reviews utility rates and related matters regarding water and wastewater utilities. On August 13, 1996, the Board authorized the issuance of a Franchise Certificate 02S through the Authority to the North Marco Island Company, Inc. for the transmission of wastewater within the specified service area boundaries described in Resolution No. 96-361 for Marco Island, Florida. If the transfer is approved, the Board will cancel Franchise Certificate 02S (because the utility is being assumed by a governmental entity). On November 6, 2023, Michael A. McNees, City Manager of Marco Island, proposed and obtained approval from the City Council for Resolution 23-57, authorizing the North Marco Utility Company Inc. purchase for $1,800,000. On November 22, 2023, Craig Woodward, Owner of the North Marco Utility Company Inc., submitted an application to the Executive Director of the Collier County Water & Wastewater Authority requesting the utility transfer (and subsequent cancelation of Franchise Certificate 02S). The application was approved under Ordinance No. 96-6 Section 1-19 F: “An application shall be processed in the same manner as provided in Section 1-4 except that the sale or any other transfer of a Franchise Certificate or facility, in whole or in part, to any governmental agency shall, absent compelling reasons against, be approved as a matter of right.” FISCAL IMPACT: Due to the transfer of this privately held utility to the City of Marco Island, a governmental agency under Ordinance No. 96-6 Section 1-19.C., staff recommends the $2,500 application fee be waived. Additionally, the County will no longer receive approximately $8,000 annually in franchise fees. GROWTH MANAGEMENT IMPACT: No growth management impact is associated with this action. LEGAL CONSIDERATIONS: Pursuant to section 1-19.F. of Ord. No. 96-6, as amended, such transfers to Governmental Agencies, absent compelling reasons against, shall be approved as a matter of right. This item has been approved for form and legality and requires a majority vote for Board approval. - DDP RECOMMENDATIONS: To adopt a resolution authorizing the transfer of the facilities of the North Marco Utility Company Inc. to The City of Marco Island and canceling Franchise Certificate 02S, pursuant to Ordinance No. 96-6, the Collier County Water and Wastewater Utilities Regulatory Ordinance. Additionally, the County will no longer receive approximately $8,000 annually in franchise fees. PREPARED BY: Michael Stark, Division Director, Operations Support & Regulatory Management ATTACHMENTS: 1. North Marco Transfer - Final Order Resolution - 112724 2. North Marco Transfer - Application Page 4159 of 10663 12/10/2024 Item # 16.A.11 ID# 2024-2029 3. Resolution 1996-361 4. Marco Res No 23-57 Page 4160 of 10663 RESOLUTION NO. 2024 - A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, PROYIDING FOR A FINAL ORDER, PURSUANT TO SECTION I-19, COLLIER COUNTY ORDINANCE NO. 96-6,, AS AMENDED, APPROVING THE TRANSFER OF ALL WASTEWATER UTILITY FACILITIES OWNED AND OPERATED BY NORTH MARCO UTILITY CO., INC. TO THE CITY OF MARCO ISLAND AND CANCELLING FRANCHISE CERTIFICATE O2S. WHEREAS, Collier County Ord. No. 96-6, as amended, the Collier County Water and Wastewater Utilities Regulatory Ordinance ("Regulatory Ordinance"), established regulations for utilities providing utility service within Collier County; and WHEREAS, on August 13, 7996, Resolution No. 96-361, the Board of County Commissioners ("Board") granted North Marco Utility Co., Inc. Wastewater Certificate 02S for the provision of wastewater treatment service to Marco Island service areas; and WHEREAS, section l-19.F. of the Regulatory Ordinance provides a process for utilities under rate and service regulatory jurisdiction of the Collier County Water and Wastewater Authority to file applications for transfer of water and/or wastewater certificates, facilities, or control of said facilities to govemmental agencies; and WHEREAS, on November 22nd, 2023, North Marco Utility Co., Inc. ("Transferor") f,rled an application for transfer of the Marco Island wastewater systems; and WHEREAS, on December 10, 2024, the Board considered this Application during its regularly scheduled meeting for the purposes of receiving evidence and testimony regarding the Application for the transfer of facilities and control to the City of Marco Island, a municipal corporation; and WHEREAS, pursuant to section l-19.C. of the Regulatory Ordinance, the Board may waive application fees should the proposed transferee be a Governmental Agency; and WHEREAS, pursuant to section 1-19.F. of the Regulatory Ordinance, such transfers to Govemmental Agencies, absent compelling reasons against, shall be approved as a matter of right. NOW, THEREFORE, BE IT RE,SOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, thAt: l. The transfer of all wastewater utility facilities owned and operated by North Marco Utility Co., Inc. to the City of Marco Island is approved. 2. Franchise Certificate 02S is cancelled because the utility is being transferred to the City of Marco Island in accordance with the Regulatory Ordinance and Res. No. 96-361. [24-OPS-0 l 07 9 I 1906838t r]Page I of2 CAOPage 4161 of 10663 3. This action makes no change to any service area boundaries or to any rates or tariffs for either system. 4. This resolution shall be construed as a Final Order, pursuant to the Regulatory Ordinance, and shall become effective upon execution. This resolution adopted after motion, second, and majority vote favoring same, this 1Oth day of December 2024 ATTEST: CRYSTAL K. KINZEL, CLERK BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLOzuDA By: Chris Hall, ChairmanDeputy Clerk Approved as to form and legality: Derek D. Perry Assistant County Attorney [24-OPS-0 l 07 9 I 1906838 I tl Page2 of2 oPage 4162 of 10663 Page 4163 of 10663 Page 4164 of 10663 Page 4165 of 10663 Page 4166 of 10663 Page 4167 of 10663 AUG 1 3 1996 RESOLUTION NO. 96- 361 A RESOLUTION OF COLLIER COUNTY, FLORIDA, PURSUANT TO SECTION 1-4 (E), COLLIER COUNTY ORDINANCE NO. 96-6, GRANTING NORTH MARCO UTILITY COMPANY, INC. A GRANDFATHER CERTIFICATE FOR TIlE PROVISION OF WASTEWATER SERVICE IN SPECIFIC UNINCORPORATED AREAS OF COLLIER COUNTY CONSISTENT WITII TIlE CERTIFICATE PREVIOUSLY ISSUED BY THE FLORIDA PUBLIC SERVICE COMMISSION. WHEREAS, Resolution No. 96-104 excluded Collier County from the provisions of Chapter 367, Florida Statutes, thereby assuming certain subject matter jurisdiction over non-exempt water and wastewater utilities operating in unincorporated areas of Collier County; and WHEREAS, Ordinance No. 96-6 established the Collier County Water and Wastewater Authority (AUTHORlTY) and specific powers and duties; and WHEREAS, Ordinance No. 96-6 requires that each non-exempt water and wastewater utility operating in unincorporated Collier County must apply for Grandfather Service area Certificates from Collier County; and WHEREAS, North Marco Utility Company (UTILITY) has submitted its application for a Grandfather Certificate for provision of wastewater service; and WHEREAS, on July 22, 1996, the AUTHORlTY considered UTILITY'S application and issued its Preliminary Order No. 96-2 recommending that the Board of CountyCommissionersofCollierCounty (BOARD) grant UTILITY a Grandfather Certificate to provide wastewater service in specific unincorporated areas of the County, more particularly described at Attachment "B"; and WHEREAS, pursuant to Ordinance No. 96-6, only the BOARD may issue a Franchise Certificate to any utility operating in the unincorporated area of the County. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Collier County, Florida, that: 1. Pursuant to Section 1-4 (E), Ordinance 96-6, Certificate No. 02S is herebyissuedtoUTILITYfortheprovisionofwastewaterservicefortheservicearea described at "Attachment BH. 2. A duplicate original ofCertificale No. 02S is attached hereto as "Attachment A", COK 000 ,~.c 4~1 Page 4168 of 10663 AUG 1 3 1996 3. Certifioate No. 02S shall remain in force and effect until suspended, canceled or revoked by Resolution of the BOARD. This Resolution adopted this /3 day of 6/,/nl-:I'", 1996 after motion, second and majority vote favoring same. ATTEST: . DWIGHt E:BROCK, Clerk t " ..:' I. .' '.... J,~~/...... BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORlDA j-: 0""" 0.<.,,1\\ Approved as to form and legal sufficiency: rfM~ i. rJ Thomas C. Palmer Assistant County Attomey OOK 000 rAC,' 485 Page 4169 of 10663 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS CERTIFICATE NUMBER 02S Upon consideration ofthe l'e(ofd;lr'jf~~if~1fESOLVl:D that authority be and is hereby gra n led to.,.:{;dEifrif~iJ'i:i;, K:":%~( ii~11fJ!~i~{~: ijf!:;:'i~ti":::j,[:::.:.;/:....:j;.. ' c-'::'/.;::::;/. ry\>:::: AiIjO,..~. MAR. ~QUl1L1TYCOM PA...NYtINp, i " "'ir... ..".,.~, ',;;-:;~;:!:, ;:~:,Y'm:!/' ",:.:."., ,:.,.,. X< i..::::'" BIrttffU1\, :q):h, ,':': -,';-, >~t>.. Whose priiidpal aMr~$ ~; ff ' C;:::;-;";-',. A{-r~:;;,~<,~,./~, '~.tL:;>/.,}.,;~<,,<';': P.O. BOX 44 ie;:.:. ;:i';(' A i ",./. 13($k, I::P;~~~;:!' MARCO ISLAND, Fl"QRIpi\,}4134 f3;: lt~furi~.i;~7"'. WASTE~~~~l;ci~J,.~...f~l~~f~;:i~.i~ccord'~lftllfft~,IR1J!~~leg~efColller County O~~I,an~~;~~;.~~;~~pplelJlent~ Rules otlh~~g~~~~b)$l,!I!p"~lI)~Jllal Rules of the Cq!!l~p:::ounty }V~t~~~!l~~ast~,.ater Aut~9g!tjl\l!q1~t8R~OhiHcios of this COffim issiciilio'jhe ten-itorYdeScribedby the ResolulioriZ'rt"""9~ 11fl:"'h.nreml~~~~~~j;!;;:;~,,",,uL~b:' 'QI~tjon of this CoiDriiission." . ...... .... ". . .... . . ..........w'. .. 'W'!n ':::: i;:::;::;':;:,:::::> ,:: -oJ" ,:.; -.<t'.:iJ< '%_,\'\,,\J d~~~~~;g~ ;)!~;Z~~2!0i! "'!At;!~~~ I~~9~Y~~U~ '''' .... DATEp tB,~~QP'Ql1QN.. ... '.. n . DJ\.TEl>.:.i.:'/ "xx., "::>"::;N: 9~:~~Y1 "'., I~: f; ,..' ;~J,#gtPY~"'~ A~ST. Ii"" .?:{# "'/.';;:;''XC'<';::-'':x';'''''-'1~ ,"1' .... ..~'" "~ f:t;>>d'{!pt:::;}w.':':' 4-_:'~'~ti: htE~:;Broc~~'..;~~~. /' ~~ G/!. aUlI( of'.'.' ,.". 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