Resolution 1996-473
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RESOLUTION NO. 96-..fl.L
OCT 1 5 1996
A RESOLUTION REQUESTING THAT THE COLLIER
COUNTY WATER AND WASTEWATER AUTHORITY
RECONSIDER AN APPLICATION BY EAGLE CREEK
UTILITY, II, INC. FOR A 1995 INDEXED RATE INCREASE
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WHEREAS, Collier County Ordinance No. 96-6, Subsection 1-18(1),
provides that for good cause the Board of County Commissioners has power and
authority to intervene at any time into any proceedings of the Collier County
Water and Wastewater Authority (Authority); and
WHEREAS, a unique situation regarding Eagle Creek Utility, 11, Inc.
(Eagle Creek) has occurred that cannot occur again regarding Eagle Creek or any
other utility regulated by the Authority; and
WHEREAS, through no fault of the County or of the Authority, Eagle
Creek lost its opportunity to acquire an indexed rate increase for calendar year
1995 from the Florida Public Service Commission (FPSC) because Eagle Creek
applied to the FPSC for that 1995 indexed rate increase after Collier County
acquired Chapter 367, Florida Statutes, jurisdiction over Eagle Creek on February
27,1996, and
WHEREAS, pursuant to subsection 367.171(5), Florida Statutes, the FPSC
rejected Eagle Creek's application for its requested 1995 indexed rate increases
because Collier County assumed Chapter 367, Florida Statutes, jurisdiction over
Eagle Creek prior to the Eagle Creek filing its application with the FPSC; and
WHEREAS, Eagle Creek could have filed its application for a 1995
indexed rate increase with the FPSC more than eleven (II) months before it
finally filed its application with the FPSC; and
WHEREAS, subsection 1-6(1)(2) of Collier County Ordinance 96-6
provides that "A utility may not... increase its rates by application of a price
index other then a price index authorized by the Authority at the time cf the
filing."; and
WHEREAS, the Authority never adopted an indexed rate for calendar year
1995 because there was no apparent reason or need to do so, therefore, there never
has been a calendar year 1995 indexed rate authorized by the Authority that could
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OCT 1 51996
possibly apply to Eagle Creek's request to the Authority for a 1995 indexed rate
increase; and
WHEREAS, except for this unique situation, there would be no rcason for
the Authority to adopt an indexed rate for calendar year 1995; and
WHEREAS, although Eagle Creek's predicament regarding its failure to
acquire a 1995 indexed rate increase from the FPSC or from the Authority
apparently could have been avoided by the exercise of more diligence by Eagle
Creek, and recognizing that Eagle Creek has its right to apply at any time to the
Authority for a general rate increase, a majority of the Board believes, and
therefore hereby requests, that the Authority reconsider Eagle Creek's application
for a 1995 indexed rate increase; and, if necessary to fulfill that request, adopt an
indexed rate increase percentage for calendar year 1995; and
WHEREAS, the power hereby asserted by the Board over the Authority is
not in violation of Ordinance No. 96-6, and can be exercised without amending
that Ordinance.
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NOW, THEREFORE, BY IT RESOLVED BY THE BOARD OF
COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA that:
I. The Collier County Water and Wastewater Authority is hereby requested to
reconsider Eagle Creek's application for a calendar year 1995 indexed rate
increase.
2. After not taking into account the lateness of Eagle Creek's original filing
with the Authority for its requested 1995 calendar year indexed rate increase, if
the evidence presented to the Authority proves that Eagle Creek is otherwise
entitled to a 1995 indexed rate increase and would have been granted had Eagle
Creek's original application be filed in a timely manner, the Authority shall adopt,
for application only to Eagle Creek in this instance, an indexed rate for calendar
year 1995.
3. Like all rate increases, any 1995 indexed rate increase that may be granted
by the Authority to Eagle Creek shall be prospective only and shall apply only to
rate revenues collected from customers after Eagle Creek's completion of the
notice to customers procedures required by subsection 1-6(1)(6) Ordinance No. 96-
6 and the Supplemental Rules of the Board.
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OCT 1 51996
This Rcsolution adopted this & day of
~ ,1996,
after motion, second and majority vote in favor of adoption.
.... ATTEST: ..... .
'~:DWIGHTE':BRO~K, CLERK
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'I,." ",.'""",.'
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
Approved as to Form and
Legal Sufficiency:
~~.r. Q~
Thomas C. Palmer
Assistant County Attorney
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