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Agenda 06/26/2018 Item #16C 506/26/2018 EXECUTIVE SUMMARY Recommendation to advertise a Resolution expanding the Collier County Water-Sewer District’s Service Area to coincide with the unincorporated area permitted by Chapter 2003-353, Laws of Florida. _____________________________________________________________________________________ OBJECTIVE: Advertise a Resolution to expand the service area for the Collier County Water -Sewer District (“CCWSD”) in accordance with the guiding principles of the Integrated Water Resources Management Strategy adopted by the Board of County Commissioners (Board) on December 8, 2015, agenda item 16C4. CONSIDERATIONS: On November 3, 2015, the Department Heads from the Public Utilities Department and the Growth Management Department presented their joint Vision, Mission and Guiding Principles to the Board regarding long term water resource management strategies. The Board formally adopted the guiding principles, one of which is “CCWSD Special Act Boundaries will be the governing future service area,” effectively indicating expansion of the CCWSD service area. A resolution to expand the CCWSD service area is included as Attachment 1. The Resolution, including proposed expanded CCSWD maps, is Exhibit A. The item must be advertised once a week for two consecutive weeks in a newspaper of general circulation in Collier County. The Board is Ex-officio the Governing Board of the Collier County Water-Sewer District. As such, Chapter 2003-353, Laws of Florida, the Special Act that created the CCWSD, grants certain powers to the Board, including jurisdiction over service area boundaries. Section 3, states in part: (3) Any portion of the unincorporated area of Collier County, except the Immokalee Water and Sewer District, and the areas described in subsection (5), paragraphs A., B., C., and D., may be added to the boundaries of the Collier County Water-Sewer District by adoption of a resolution by the District Board. Paragraphs A., B., C., and D., describe the water and sewer service areas of the City of Naples, Marco Island Utilities, City of Golden Gate (acquired by the CCWSD on March 1, 2018) and Everglades City/Immokalee Water and Sewer District, respectively. Recent growth patterns in the northeast and southeast areas of the county have identified opportunities for expansion of economically feasible services. Water and sewer services for development located within the service area boundaries would be required to seek such service from the CCWSD. If the services were not available or the CCWSD could not serve the development in an economically feasible manner, the development would be free to seek services from other sources. While the expanded boundaries will encompass estate-zoned areas, the CCWSD will continue its policy of not extending services to estate-zoned properties. The special act was established in part to discourage multiple private utilities that often fall into disrepair and out of compliance. The experiences of integrating the Orange Tree Utility Company and acquiring the Golden Gate City Utility have shown the process to be cumbersome and expensive. By expanding the CCWSD boundaries as requested, potential developments such as Winchester Lakes and Hogan Island Village would be included in the CCWSD, while previously they were not. Below is a summary of development activity contained within the proposed jurisdictional boundary (See Attachment 2 - Map showing future development and Attachment 3 - Map showing current and proposed boundaries): 06/26/2018 Winchester Lakes has stated an interest in being served by the CCWSD. On May 11, 2017, the Ave Maria Utility Company requested expansion of its service area to serve Hogan Island Village. On June 2, 2017, the County Manager filed an objection to this request with the Director of the Collier County Utility Authority. Rural Lands West is contained within the Big Cypress Stewardship District (BCSD), and therefore has the right to provide its own water and wastewater services, in accordance with Section 3(1)(j) & (k) of Chapter 2004-423, Laws of Florida, in addition to the CCWSD’s express jurisdiction to provide service throughout all unincorporated areas of the County unless excepted from the CCWSD’s Special Act. As a sign of good faith, Rural Land’s representatives have unilaterally executed a proposed memorandum of understanding (MOU) (See Attachment 4) between the CCWSD and the BCSD demonstrating Rural Lands West’s intent to be served by the CCWSD. Based upon the Board’s direction on the requested expansion of the CCWSD’s boundaries, staff intends to bring the attached MOU back for the Board’s consideration later. The State Road 846 Land Trust is located within the current CCWSD service area. If these developments proceed to fruition, they would be served by the proposed Northeast Utility Facilities estimated to cost $188 million for 4 million gallons per day (MGD) of wastewater treatment and 5 MGD of water treatment. Attachment 2 shows the relative proximity of the State Road 846 Land Trust, Hogan Island Village, Winchester Lakes and Rural Lands West, enabling them to be served through water and wastewater transmission mains emanating from the Northeast Utility Facilities. Funding for the Northeast Utility Facilities to provide adequate capacity to serve would require additional debt through the issuance of a CCWSD Bond. A water and sewer impact fee rate study is currently underway to identify the impact to rates going forward to fund construction and additional debt service and will be brought to the Board for consideration at a later meeting. The resulting effective CCWSD boundaries will encompass the entire area of Collier County, except for the following areas served by: Paragraph A: The area served by the City of Naples Paragraph B: The area served by the City of Marco Island Paragraph D: The boundaries of Everglades City, the Immokalee Water and Sewer District and those areas authorized to be served as of the date of the Resolution by the Collier County Water - Sewer Regulatory Authority The Ave Maria Utility Company LLLP All conservation lands FISCAL IMPACT: The fiscal impact associated with this action will be approximately $2,800.00 to advertise the Resolution. All planning and future development must meet the vision, mission and guiding principles approved by the Board on November 3, 2015. In addition, any development within the boundaries defined by the Special Act will continue to meet the Board-approved Utility Standards Ordinance. A strategic water supply plan and concurrent updates to the Water and Wastewater Impact Fee Rate Studies and Master Plans will be initiated for growth-related infrastructure. Revenues from water and sewer impact fees collected upon connection to the CCWSD system as reservation of capacity would accrue in the respective Water and Sewer Impact Fee Funds (411 and 413 respectively), and Water, Sewer and IQ Water User Fees would continue to accrue in the Water-Sewer District Operating Fund (408). LEGAL CONSIDERATIONS: This item is approved as to form and legality, and requires majority vote for Board approval. -SRT 06/26/2018 GROWTH MANAGEMENT IMPACT: This item meets current Growth Management Plan standards to ensure the adequacy and availability of viable public facilities. RECOMMENDATION: That the Board, Ex-officio the Governing Board of the Collier County Water- Sewer District, direct the County Manager or his designee, to advertise the attached Resolution expanding the Collier County Water-Sewer District’s Service Area to coincide with the unincorporated area permitted by Chapter 2003-353, Laws of Florida, and to bring the Resolution to the Board for consideration after it has been lawfully advertised. Prepared By: Joe Bellone, Financial Operations Director, Public Utilities Department Tom Chmelik, Planning and Project Management Director, Public Utilities Department ATTACHMENT(S) 1. Boundary Expansion Water-Sewer District Resolution 2018 060618 (PDF) 2. Map Showing Future Development (PDF) 3. Map Showing Current and Proposed Boundaries (PDF) 4. Memorandum of Understanding (PDF) 5. Presentation (PDF) 6. Letter to Jeff Klatzkow (PDF) 06/26/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.5 Doc ID: 5944 Item Summary: *** This item was continued from the June 12, 2018 BCC meeting and is further continued to the July 10, 2018 BCC Meeting *** Recommendation to advertise a Re solution expanding the Collier County Water-Sewer District’s Service Area boundaries to coincide with the area permitted by Chapter 2003-353, Laws of Florida. Meeting Date: 06/26/2018 Prepared by: Title: Manager - Technical Systems Operations – Administrative Services Department Name: Michael Cox 06/13/2018 1:16 PM Submitted by: Title: Division Director - Public Utilities Eng – Public Utilities Planning and Project Management Name: Tom Chmelik 06/13/2018 1:16 PM Approved By: Review: Public Utilities Operations Support Michael Cox Additional Reviewer Skipped 06/13/2018 1:16 PM Water Michael Cox Additional Reviewer Skipped 06/13/2018 1:16 PM Wastewater Michael Cox Additional Reviewer Skipped 06/13/2018 1:16 PM Public Utilities Department Michael Cox Level 1 Division Reviewer Skipped 06/13/2018 1:16 PM County Attorney's Office Michael Cox Level 2 Attorney Review Skipped 06/13/2018 1:16 PM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 06/14/2018 9:16 AM Office of Management and Budget Michael Cox Level 3 OMB Gatekeeper Review Skipped 06/13/2018 1:16 PM County Attorney's Office Michael Cox Level 3 County Attorney's Office Review Skipped 06/13/2018 1:16 PM Budget and Management Office Ed Finn Additional Reviewer Completed 06/14/2018 8:47 AM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 06/14/2018 2:55 PM Board of County Commissioners MaryJo Brock Meeting Pending 06/26/2018 9:00 AM RESOLUTION NO. 2018- A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, A POLITICAL SUBDIVISION OF THE STATE OF FLORIDA, ACTING AS THE EX -OFFICIO GOVERNING BOARD OF THE COLLIER COUNTY WATER -SEWER DISTRICT; AMENDING THE SERVICE BOUNDARY AREA IN WHICH THE DISTRICT IS AUTHORIZED TO PROVIDE WATER, WASTEWATER AND RELATED SERVICES TO INCLUDE ALL UNINCORPORATED AREAS OF THE COUNTY NOT LYING WITHIN SERVICE AREAS GRANTED TO THIRD PARTIES BY THE WATER AND SEWER REGULATORY AUTHORITY OR AS OTHERWISE EXCEPTED BY THE SPECIAL ACT CREATING THE DISTRICT; AND PROVIDING FOR APPLICABILITY AND AN EFFECTIVE DATE. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AS THE EX -OFFICIO GOVERNING BOARD OF THE COLLIER COUNTY WATER -SEWER DISTRICT, AS FOLLOWS: SECTION 1. AUTHORITY. Pursuant to Chapter 125, Florida Statutes, the Board of County Commissioners (the "Board") of Collier County, Florida (the "County") has all the powers of local self-government to perform County functions and render services for County purposes in a manner not inconsistent with general law or with special law approved by vote of the electors. Such power includes, without limitation, the power to acquire, own, improve, operate, maintain, and dispose of water and wastewater utility facilities. SECTION 2. FINDINGS. It is hereby ascertained, determined and declared: (A) Chapter 125, Florida Statutes, grants the County the power, without limitation, to acquire, own, operate, maintain, improve, and dispose of water and wastewater utility facilities of the Collier County Water Sewer District ("CCWSD"), which powers the County exercises through the CCWSD. (B) The Board publicly advertised and held a public hearing on the expansion of the CCWSD's boundaries and interested persons had an opportunity to attend and participate in the hearing as required by Section 3(3) of the Charter created by the Special Act establishing the CCWSD, Chapter 2003-353, Laws of Florida (hereafter, the "Special Act"). (C) This expansion of the CCWSD boundary will allow the County to: (1) address and balance the impact of growth with the need to provide and plan for quality water production, treatment, storage, transmission and distribution, and wastewater collection, treatment and disposal facilities necessary to accommodate existing development and anticipated future growth in a manner concurrent with the demands for such facilities in the area, the requirements of state and federal mandates, and the demands of new development and the County's statutory responsibility to implement financially feasible comprehensive plans; (2) further develop a regional approach relative to the comprehensive supply, distribution, and treatment of water and the collection, treatment and disposal of wastewater in the County; (3) create economies of scale relative to operations, maintenance, customer service and management; (4) to more effectively and efficiently plan and fulfill its comprehensive planning requirements as provided by law and assure that high quality, cost efficient water and wastewater utility services are available to additional County residents; (5) expressly coincide with the actual boundaries provided for in the Special Act that created the CCWSD. SECTION 3. DETERMINATION OF PUBLIC USE AND BENEFIT. Based upon the above legislative findings incorporated herein, the Board expressly determines that the expansion of the CCWSD's boundaries to coincide with the actual boundaries provided for in the Special Act that created the CCWSD, and the provision of water and wastewater services through facilities owned by the CCWSD within that identified boundary, constitutes a paramount public purpose and is in the best interest of the health, safety, and welfare of the County and its inhabitants and affected ratepayers. SECTION 4. EXPANSION OF COUNTY WATER AND WASTEWATER SERVICE AREA. The area in which the County is authorized to exclusively provide water, wastewater and related services shall include all unincorporated areas of the County not lying within the below areas, which are excluded by Section 3(3) of the Special Act: 1) the Immokalee Water and Sewer District; 2) the City of Marco Island; 3) the City of Naples; 4) Everglades City; 5) the service area of the Ave Maria Utility Company, LLLP. Except for those five enumerated areas set forth above, the CCWSD's water and wastewater service areas shall include all remaining unincorporated areas of the County. See Exhibit "A," attached hereto and incorporated herein, which includes areas previously integrated into the CCWSD's boundaries by Resolution, including the City of Golden Gate and Orange Tree Utility Service areas. The County also is authorized to enter into such agreements with municipalities, towns, special districts or other governmental authorities or privately -owned utilities as may be necessary and N in the public interest to achieve the efficient, cost-effective and environmentally friendly provision of water, wastewater and related services to all areas of the County. SECTION 5. APPLICABILITY AND EFFECTIVE DATE. This Resolution shall be liberally construed to affect the purposes hereof and shall take effect immediately upon its adoption. PASSED AND DULY ADOPTED at the meeting of the Board of County Commissioners of Collier County, Florida, acting as the Ex -Officio Board of the Collier County Water -Sewer District and the Ex -Officio Board of the Collier County Water and Wastewater Authority on the day of , 2018. BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA, AS THE GOVERNING BODY OF COLLIER COUNTY AND EX -OFFICIO BOARD OF THE COLLIER COUNTY WATER -SEWER DISTRICT AND EX - OFFICIO BOARD OF THE COLLIER COUNTY WATER AND WASTEWATER AUTHORITY IC ' ATTEST: DWIGHT E. BROCK, Clerk BY: Deputy Clerk Approved as to form and legality: BY: Scott R. Teach Deputy County Attorney k] Andy Solis, Chairman Exhibit A COLLIER COUNTY WATER -SEWER DISTRICT PROPOSED WATER MAP F SR 82 -- - _— — --- - Lake Trafford RD Immokalee Water & Sewer District O a' W z }J Z O U Oil Well RD Immokalee RD Ave Maria, > z Vanderbilt Beach RD F E � Golden Gate BLVD W Big Cypress toz E O � ~ t- Z Green BLVD Jurisdictional Boundary Radio RD 175 Z Davis BLVQ City of Naples Existing Water Service Area �T ;, — Excluded from District per Special Act 0 Stewardship District Franchise Certificated Area and Stewardship District ® Community Development District ra�%ia 1. Not all areas within CCWSD will be served. 2. Service areas shown are approximate. (� 3. The jurisdictional boundary includes all developable land within the county that is contiguous with the existing CCWSD. City of Marco Islan] Port Of The Islands o -- ——������ Community Improvement District i" N � C 01-p L 0;* yo Everglades City 0 5 10 9 © Miles i Chokoloskee Municipal Service Taxing Unit January 2018 (Everglades City) COLLIER COUNTY WATER -SEWER DISTRICT Q PROPOSED WASTEWATER MAP sR8 ,2 Lake Trafford -RD e Water & Sewer District Elmm f/ ' -- -- - -- ` r rn w z J z O U b S N Oil Well RD H d Immokalee RD Ave Maria to > z Vanderbilt Beach RD � o - E ot Golden Gate BLVD W Big Cypress toz E O A � ~ z Green BLVD — f > i Jurisdictional Boundary! 'piaRadio RD 175 Z Davis BLV - -r City of Naples] Existing Wastewater Service Area Excluded from District per Special Act Stewardship District Franchise Certificated Area and Stewardship District y Community Development District Tadd 1. Not all areas within CCWSD will be served. 2. Service areas shown are approximate. 3. The jurisdictional boundary includes all developable land within the county that is contiguous with the existing CCWSD. City of Marco Island 4 O io tO tp C 0 0 5 10 Miles January 2018 Port Of The Islands Community Improvement District Everglades City 9 Chokoloskee Municipal s Service Taxing Unit (Everglades City) ^_^_ ^_ I75 SR 29SR 82 Immokale e RD Oil Well RD S 1st STLake Trafford RDCORKSCREW RDN 15th STWilson BLVD NW e s t c l o x S T E Main ST Jurisdi ctional B oundary Stewardship District (Interlocal agreement i n progress) Excluded from CCWSD per Spe cial A ct Fr anch ise Certificate d A rea and S tewardship Di strict Active Development Pla nne d Deve lopment RLSA 2025 RLSA 2050 Existing CCWSD Bou ndary ^_Regio nal Northe ast Utility Facilitie s ^_Sub-Region al E ast Utility Tre atment Plants ^_Sub-Region al Northea st Utility Trea tm ent Plants FUTURE DEVELOPMENTIN NORTHEAST COLLIER COUNTY Winche ster Lake s Vale ncia G ol f and Co untr y Club Ora nge Blossom Ranch Rura l Lan ds We st Ave M aria Immo kalee Water & Sewe r Distr ict SR 84 6 Land Tr ust Hogan Isl and Vi llage °0 2 41Miles April 2018 Twin Eagl es North Twin E agl es South I75 SR 29Tamiami TRL E Immokalee RD SR 82 Collier BLVDOil Well RD LIVINGSTON RDSan Marco RDTamiami TRL NDavis BLVD Radi o RD COUNTY LINE RDVanderbilt Beach RDVanderbilt DROLD 41S 1st ST9TH ST NGreen BLVD Golden Ga te BLVD W Lak e Trafford RDCORKSCREW RDBal d Eagl e DRC O P E L A N D A V E S S Co lli e r BL V DImmokale e Water & S ewer Distr ict Ave M aria Everglad es City City of Naples °0 5 10Miles Jurisdi ctional Boundary COLLIER COUNTY WATE R-S EWER DISTRICTPROPOSED WATER MAP Janu ary 2018 1 Big Cyp ress City of Marco Island Chokoloskee Municip alService Taxing Unit(Evergla des City) Port O f The Isl and sCommunity Impr ovement District 1. Not all areas within CCWSD wi ll be served.2. Servi ce areas shown are approximate.3. The juri sdictional boundar y includes all developable land w ithin t he county that is cont iguous with the existing CCWS D. Existing Wate r Service A rea Excluded from District per Spe ci al A ctStewardship District (Interlocal agreement i n progress) Fr anch ise Certificate d A rea and S tewardship Di strict Commun ity Develo pment District MEMORANDUM OF UNDERSTANDING BY AND AMONG THE COLLIER COUNTY WATER -SEWER DISTRICT, THE BIG CYPRESS STEWARDSHIP DISTRICT, COLLIER LAND HOLDINGS, LTD. AND CDC LAND INVESTMENTS, LLC PURPOSE This Memorandum of Understanding ("MOU") by and among the Board of County Commissioners of Collier County, Florida, acting ex officio as the governing board of the Collier County Water -Sewer District ("CCWSD"), the Board of Supervisors of the Big Cypress Stewardship District ("District"), and CDC Land Investments, LLC and Collier Land Holdings, Ltd. ("Landowners"), commits the parties to negotiate an interlocal agreement providing for the timely initiation of water and wastewater services by CCWSD to all of the lands and property within the political boundaries of the District as established by special act of the Florida Legislature. BACKGROUND Pursuant to authorization provided by special law of the Florida Legislature, CCWSD provides water and wastewater service in an economical and environmentally beneficial manner to much of the unincorporated area of Collier County. The District also was created by special law of the Florida Legislature which law provides authorization to the District to arrange for the provision of water and wastewater service within the District's boundaries, including lands owned by Landowners. Several years ago, CCWSD adopted its Sustainable Integrated Water Resource Management Strategy ("Water Resource Management Strategy") to provide long term economical and environmentally beneficial water and wastewater service within its service area and beyond; and CCWSD has been implementing such strategy ever since. A copy of the Water Resource Management Strategy is attached to this memorandum. CCWSD and the District have been negotiating an interlocal agreement pursuant to which CCWSD shall incorporate the lands and property within the District into CCWSD's service area to exclusively provide retail water and wastewater services in the same manner and pursuant to the same ordinances and policies as CCWSD currently provides service to all other customers located throughout the County. The entry of such an interlocal agreement is a further step toward the successful implementation of the Water Resource Management Strategy. GOALS OF THIS MEMORANDUM 1. To commit CCWSD, the District and Landowners to the prompt negotiation and signing of an interlocal agreement pursuant to which CCWSD exclusively shall provide water and wastewater services throughout the lands and property of the District. 2. To establish the parties' intent that facilities constructed pursuant to such interlocal agreement shall be consistent with current construction standards and policies of CCWSD. 3. To establish the parties' intent to have the necessary water and wastewater facilities constructed in a manner compliant with Florida law, and County and District ordinances and policies, as may apply to engineering, design and construction services, to achieve the timely construction of such facilities at the most economical cost. 4. To coordinate the expeditious achievement of the above goals so that current and future customers of CCWSD located both within and outside the District shall enjoy the economies of scale and other benefits of service from CCWSD at the most economically feasible rates possible. NOW, THEREFORE, the parties agree to negotiate an interlocal agreement which includes mutually satisfactory terms reflecting the following agreements between the parties: 1. The District shall construct mutually agreed upon water and wastewater treatment and related facilities pursuant to a design/build arrangement with CCWSD. These District constructed facilities will include: a .5 MGD water plant and .5 MGD wastewater plant with supporting wells, tanks, and pumps on a 16 acre utility site, which is designed for 4-6 years of absorption. The 16 acre site will accommodate a potential future CCWSD expansion up to 2 MGD water and wastewater. The Landowners has received an appraisal valuing the 16 acre utility site at $288,000($18,000/acre), and is a willing seller at the appraised value. The parties shall establish in the interlocal agreement the mutually agreed upon price for lands to be conveyed. The parties shall take such steps as are necessary to comply with Florida law, and CCWSD and District ordinances, rules, and/or policies, with regard to engineering, construction and other contracts and competitive procurement thereof, as maybe required. CCWSD shall own, operate, maintain, repair, replace and expand the treatment and related facilities after their completion as necessary to serve lands within the District, at CCWSD cost and pursuant to applicable CCWSD rates, charges and capital recovery policies as may apply to all CCWSD customers at such time. 2. CCWSD, the District and their designated representatives shall review, inspect and approve construction progress of treatment plants and related facilities at the following stages toward completion: 30%, 60%, 90% and 100%. CCWSD and the District shall mutually select and agree upon an independent entity to provide CEI Services, which entity shall be compensated by and subject to the direction of CCWSD. 3. All water and wastewater treatment and related facilities to be constructed pursuant to the interlocal agreement (including all horizontal and vertical infrastructure) shall be built in compliance with CCWSD standards, policies and requirements as identified by CCWSD. 4. At each of the 30%, 60%, 90% construction intervals and upon final completion of the treatment and related facilities, CCWSD shall provide cash reimbursement to the District equal to one hundred percent (100%) of the costs incurred by the District through such intervals. 5. The District shall construct and pay for water distribution and wastewater collection facilities and convey such facilities to CCWSD in the manner provided in applicable CCWSD policies and County ordinances including, but not limited to, Ordinance 2004-31, as may be amended from time to time (the "Utilities Standards Ordinance"). The District also shall provide CCWSD representatives the means and opportunity to inspect and test such facilities as provided in the Utilities Standards Ordinance. 6. The District and the CCWSD agree to use best efforts to reduce the current agricultural water use within the District by 10% at build -out. The District and CCWSD shall cooperate in the pursuit of such new or modified consumptive use permits (CUPs) as may be needed and in a time frame as shall be necessary to permit CCWSD to provide potable water production as contemplated in the interlocal agreement, subject to SFWMD approval 7. The residential units within Rural Lands West will pay $51.7MM for water and wastewater impact fees through build -out at the current rates, unless and until such impact fees are modified by the Board of County Commissioners. If the absorption rate of residential units within the District falls below 50% of the Projected Absorption Schedule (a copy of which is attached hereto), the District shall pre -purchase water and wastewater impact fees to make up the short fall below 50% of the Projected Absorption Schedule. These credits must be used within the District for residential units and CCWSD will reserve associated capacity to the lands within the District therefor. ►AMNIUkriWk Ir-MMI'Lll The conditions of this MOU become effective upon signing by both parties. This MOU will remain in effect until the contemplated interlocal agreement is signed by both parties, at which time this MOU shall have no further force and effect and only the terms included in the interlocal agreement shall apply. Any amendments to this MOU shall be in writing and executed in the same manner as this original MOU. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on this day of 2018. The Board of County Commissioners of Collier County, Florida ATTEST: Collier County Water -Sewer District By: ATTEST: Big Cypress Stewardship District We �" i "; us) By: Patrick L. Utter, President ATTEST: �� O VA�� Pr;E CDC Land Investments, LLC WON% F/7 1,01 By:.Patrick L. Utter, Vice President ATTEST: V o L(� --- 4A -k� Q'tk Collier Land Holdings, Ltd. By: Patrick L. Utter, as Vice President of Collier Enterprises, Inc. the General Partner of Collier Land Holdings Ltd. ATTEST: 4 O w N O N O O O N O O 0 0 0 0 0 0 0 In Vii O d_ 0 0 0 0 0 0 0 0 O A A � O N O N In 0 o p O p N N N O O O w � ONi N (n N A A m o A O w O O O O J N ONi In N � In N m tND O A 0 o w O O O Resolution to Expand the Collier County Water-Sewer District . Public Utilities Department June 26, 2018 Collier County | Florida Public Utilities Department Engineering and Project Management Division Objective Expand the service area for the Collier County Water-Sewer District (CCWSD) to ensure that future developments are served by the CCWSD. Eliminate/reduce the proliferation of package treatment plants as identified in the Special Act. Ensure that utility facilities are constructed to CCWSD standards. 2Public Utilities Department Engineering and Project Management Division Considerations Northeast growth indicates opportunities for utility expansion. Development within service area boundaries is required to seek utility services from the CCWSD. If the CCWSD cannot provide services, development may seek utility services from other sources. Integrating the Orange Tree Utility Company and acquiring the Golden Gate City Utility have shown the process to be cumbersome and expensive. The CCWSD will continue its policy of not extending services to estate-zoned properties. 3Public Utilities Department Engineering and Project Management Division Proposed Boundaries 4 NE Developments 5 Future Utility Facilities 6 Northeast Utility Facilities Conceptual Pipe Alignments 7 Pipe Alignments to -SR 846 Land Trust -Hogan Island Village -Rural Lands West -Winchester Lakes Conceptual Pipe Looping 8 Pipe Loops -Water -Wastewater Potential NE Developments Winchester Lakes has stated an interest in being served by the CCWSD. The Ave Maria Utility Company requested expansion of its service area in order to serve Hogan Island Village. Subsequently, the County Manager filed an objection to this request. Rural Lands West is contained within the Big Cypress Stewardship District (BCSD), and therefore has the right to provide its own water and wastewater services in addition to the CCWSD’s jurisdiction. A signed memorandum of understanding between the CCWSD and the BCSD could allow the CCWSD to serve Rural Lands West. The State Road 846 Land Trust is located within the current CCWSD service area. 9Public Utilities Department Engineering and Project Management Division Recommendation That the Board, Ex-officio the Governing Board of the Collier County Water-Sewer District, direct the County Manager or his designee, to advertise the attached Resolution expanding the Collier County Water-Sewer District’s Service Area to coincide with the unincorporated area permitted by Chapter 2003-353, Laws of Florida, and to bring the Resolution to the Board for consideration after it has been lawfully advertised. 10Public Utilities Department Engineering and Project Management Division SUNDSTROM e June 18, 2018 Jeffrey A. Klatkow, Esquire Collier County Attorney 3299 Tamiami Trail East, Suite 800 Naples, Florida 34112-5749 2548 BLAIRSTONE PINES DRIVE TALLAHASSEE, FLORIDA 32301 PHONE (850) 877-6555 FAX (850) 656-4029 www.sfflaw.com Re: Collier County Water and Sewer District, Service Area Boundary Expansion Our File No. 37077.04 Dear Jeff, Further to my discussion with County Manager, Leo Ochs, during the break of the BOCC agenda conference last Tuesday, our client, Barron Collier Companies, hereby affirms that it agrees to an eventual sale of the assets of Ave Maria Utility Company, LLLP ("AMUC") to Collier County at fair market value in exchange for the County's withdrawal of its objection to the expansion of the AMUC service area so as to include Barron Collier's Hogan Island. In that regard, I am attaching a copy of the Memorandum signed by Leo Ochs and Blake Gable on August 22, 2017, and the Term Sheet that AMUC prepared outlining the agreement between them. We understand that the appropriate County staff will meet with David Genson and his assistants at .Barron Collier over the next couple of weeks to determine if this process can be advanced. Barron Collier does not agree to the staff's earlier proposal that AMUC build the utility facilities necessary to serve Hogan Island and then transfer them to the County immediately after construction at original cost. Barron Collier intends to provide service to its Hogan Island project through its AMUC subsidiary, but is willing, as aforesaid, to agree in advance to sell the utility to the County at fair market value after or near the time of build out of the Hogan Island project. During our meeting last Tuesday, Assistant County Manager Nick Casalanguida indicated he would like to bring this matter back to the BOCC on June 26th. Unfortunately, that date does not work for our side, thus we request that this matter roll to the next available BOCC agenda on July loth. Jeffrey A. Matzkow, Esquire June 18, 2018 Page 2 Failing staff s willingness to abide by the original oral agreement between Leo Ochs and Blake Gable as memorialized in the attached Term Sheet, we respectfully request that either the proposed expansion of the Collier County Water and Sewer District be redrawn so as to exclude Hogan Island or that this matter be set for hearing in accordance with my letter to the BOCC of April 20 of this year (a copy of which is also attached for your ready reference). Should you have any questions or comments concerning the above, please do not hesitate to contact us. Sincerely, SUNDSTROM & MINDLIN, LLP William E. Sundstrom, P.A. For the Firm WES/brf Enclosures cc: David B. Genson, P.E. SUNDSTROM & MINDLIN, LLP 2548 Blairstone Pines Drive, Tallahassee, Florida 32301 Office of the County Manager MEMO Sent Via US Regular and Certified Mail Date: August 22, 2017 To: Chair, Collier County Utility Amthority 2800 North Horseshoe Drive Naples FL 34104 From: Leo E. Ochs, Jr. Blake Gable County Manager, Collier County CEO, Barron Collier Subject: Notice of Extension of Water and Wastewater Service fled by Ave Maria Utility Company Date of Notice: May 11, 2017 Objection by Collier County Please accept this memo as a request for a postponement of hearing from the Collier County Water Semler District (CCWSD) and Ave Maria Utility Company (AMUS to the notice of extension of Water and Wastewater Service area dated May 11, 2017. In the notice, AMU stated its intension to extend its service area into Sections 5-6 and 14-23, Township 47 South, Range 28 East, Collier County, Florida. Recent growth patterns in the northeast area of the county have identified Opportunities for the potential expansion ofthe current CCWSD boundary at the same time AMU is requesting their expansion. The CCWSD has discussed this concern with the AMU. Both parties have agreed to work cooperatively together over the next 90 days to explore a mutually beneficial solution- We would respectfully request that a hearing not be scheduled until such time that the CCWSD or AMU rkotifies you that we have completed our joint discussions and we can provide you an update on our positions. Respectfully, Loo E. Ochs, Jr. Blake Gable county Manager — Collier County CEO, Barron Collier Co. � cc: Jeff Matzkow, Collier County Attorney Nick:Casalanguida, Deputy County Manager G. George Yilmaz, Department Head, Public Utilities Department 1 1 1a, ILL Ave Maria Utility Company ("AMUC" or "Utility"), a wholly owned subsidiary of Barron Collier Companies ("Barron Collier"), has filed an application to extend its franchise certificated service areas so as to include Barron Collier's Hogan Island project. Collier County, Florida ("Collier County" or "the County") has protested that application, and baring settlement, the matter will be resolved either after public hearing and/or the full blown contested administrative proceeding. The principals for Barron Collier and Collier County have agreed that the County will withdraw its protest and allow AMUC to go forwarding providing that the County is entitled to an opportunity to purchase AMUC in the future at fair market value. The following constitutes an initial draft outline of the terms and conditions of a proposed Agreement between AMUC and Collier County by which AMUC would agree to sell, and Collier County would have the option to buy, AMUC's assets at specific times in the future. 1. Exhibit A would be a map of the exclusive service area of Ave Maria Utility Company, which would include the existing AMUC service area, Hogan Island and other Barron Collier properties in the area. Delineated within the corners of that map would be all of the lands available for eventual service by AMUC facilities, to the exclusion of any other provider. The Agreement between the parties would stipulate that upon execution, AMUC would apply to the Collier County Utility Authority for expansion of its certificate so as to include all of the territories within the boundaries of the subject map, and that the County would support the granting of that application. Said map may be amended from time to time as appropriate. 2. The Agreement would allow AMUC time to mature such that it would be in a position to construct all of the capacity needed for Barron Collier lands through buildout or at least have the majority of that capacity in place prior to closing. 3. The first option date for the County to buy AMUC would be 20 years out. The Agreement would provide that on every third anniversary after the 20th year, the County's buy option would renew, however if the County fails to exercise its option after the first option date, AMUC would be free to sell its assets to any other bona fide buyer. 4. When and if the County exercises its option to buy the Utility, the purchase price would be the then fair market value of the Utility's assets. The methodology for determining fair market value would be as follows: (a) Determine the gross revenues that the Utility would produce utilizing County rates and charges, indexed forward on an annual basis, if the County's tariff provides for same. (b) Subtract from gross revenues assumed operation and maintenance expenses at 45% and renewal and replacement at 5%, meaning that 50% of gross revenues would equal anticipated annual operating expenses, including R&R. By definition, "net revenues available for debt service" would equal 50% of the anticipated gross revenues from all sources to be derived by the County from operation of the utility system. (c) The "cash purchase price at closing" would then be defined as the amount of bonds to be sold by the hypothecation of the net available revenue against a 3o -year A rated revenue bond at 110 coverage, less 3% of the gross amount of the bonds to be reserved for cost of issuance. The interest rate used in the calculation of the "cash purchase price at closing" shall be the MMD "A Rated" scale as published on the date of such calculation. 5. This Agreement will reflect that AMUC will construct expensive and valuable utility plants, facilities, lines, etc. for use in the future, thus all or part of those facilities will not be generating revenue at the time of the sale. In order to properly compensate AMUC for that unused capacity, AMUC shall be entitled to "futures" payments as follows: (a) 75% of the cash connection charges paid by developers and others to the Collier County Water and Sewer District, or its successor, to be paid on an annual basis on or before the 15th day of February following the conclusion of the previous calendar year. Such futures payments shall be made until AMUC has recovered the full investment in land and facilities transferred to the County at the time of closing, or constructed post -closing as described in paragraph 2 above. (b) The bonding capacity of the new customers added to the system on an annual basis, paid annually for 10 years subsequent to closing, on or about the 15th day of February following the closing of the previous calendar year, and according to the same formula as outlined in Section 5 above involved in the determination of purchase price. 6. Attached to the Agreement between the parties would be a draft purchase and sale agreement, which would contain essentially all of the terms and conditions of the actual eventual purchase and sale. Ave Maria Utility Company\term sheet SUNDSTROM MIN LIN, LLP A t t o r n e y s I C o u n s e l o r s April 20, 2018 Andy Solis, Esquire Chairman, Collier County Board of County Commission 3299 Tamiami Trail East, Suite 303 Naples, Florida 34112 2548 BLAIRSTONE PINES DRIVE TALLAHASSEE, FLORIDA 32301 PHONE (850) 877-6555 FAX (850) 656-4029 www.sfflaw.com Re: Application of Ave Maria Utility Company, LLLP for an extension of its franchise certificate service area Our File No. 37oT7.oS Dear Chairman Solis, I am writing to you in your capacity as Chairman of the Board of County Commissioners, and thus as ex officio chairman of the Collier County Water and Wastewater Authority. By way of background, on May 9, 2017, our client, Ave Maria Utility Company, LLLP ("AMUC") filed notice of its intent to extend its water and wastewater service area so as to include additional lands in the Rural Stewardship Area of Collier County known as Hogan Village, a property owned by Barron Collier Companies which is also the owner of AMUC. On June 2, 2017, the Collier County Water Sewer District ("CCWSD") filed its objection to the extension of the AMUC water and wastewater service area, thus signaling the intention of the CCWSD to contest AMUC's request for the additional territory. On July 1o, our client perfected its application by filing the appropriate documents required by the rules of the Collier County Water and Wastewater Authority ("Authority"). On or about August 22, 2017, County Manager Leo Ochs, Jr. and Blake Gable, CEO of Barron Collier Companies, filed a joint request with the Authority for a go -day extension of time to determine whether or not the parties could "explore a mutually beneficially solution". The discussions between the parties proceeded slowly, in part due to the unwelcome visit of Hurricane Irma on September loth and 11th. Regardless, on January 17th, we requested that the Authority allow the parties until the end of February to continue their discussions with hopes that some sort of an amicable settlement could be reached. Our discussions have failed to produce a mutually acceptable resolution of the matter. We must, therefore, request that this matter be declared to be "at issue" and that the Authority refer this case to the Florida Division of Administrative Hearings ("DOAH") for the assignment of an Administrative Law Judge to conduct a formal hearing and to issue a recommended order in this matter. To the extent that the procedural rules of the Authority do not address any issue of practice or procedure, AMUC agrees that the hearing will be conducted in accordance with the Florida Rules of Civil Procedure rather than the Florida Administrative Procedure Act. Andy Solis, Esquire April 20, 2018 Page 2 The reason that we request this matter be assigned to DOAH is founded on basic principles of due process of law. In this case, the Board of County Commissioners, the CCWSD, and the Authority are all represented by the Collier County Attorney's Office. Hove=, in the name of fairness and justice, can: (a) the real party in interest, (b) the entity that will adjudicate this matter, as well as (c) the entity that is advocating against AMUC, be represented by the same lawyer? The answer to that question is clearly that it cannot be done. This matter requires assignment to an Administrative Law Judge, who has no connection to either party and thus is immune from the claim of bias and over the appointment of whom neither party has any influence, or the Authority needs to retain its own counsel to advise it, as it cannot presume to be a fair, impartial and disinterested arbiter of the facts while being advised by the County Attorney's Office. In fact, if the Authority were to hear this case, it may require that both the CCWSD and the Authority hire outside counsel to avoid impermissible conflicts of interest which would constitute a potentially serious violation of AMUC's rights. All of this can be avoided by simply referring the matter to DOAH for the assignment of an Administrative Law Judge to hear the case and issue a recommended order in this matter. It is a fundamental principle of law that "no man shall be a judge in his own case". Should you have any questions or comments concerning the above, please do not hesitate to contact us. Sincerely, SUNDSTROM & MINDLIN, LLP William E. Sundstrom, P.A. For the Firm WES/brf cc: Commissioner Donna Fiala, District 1 Commissioner Burt L. Saunders, Esq., District 3 Commissioner Penny Taylor, District 4 Commissioner William L. McDaniel, Jr., District 5 Leo E. Ochs, Jr., County Manager Jeffrey Klatzkow, County Attorney Kenneth Kovensky, Utility Authority Director Ave Maria/Extension of Service Area/Solis Andy SUNDsTRom & MINDLIN, LLP 2548 Blairstone Pines Drive, Tallahassee, Florida 32301