Resolution 1997-454RESOLUTION NO. 97- 45~,
A RESOLUTION OF COLLIER COUNTY,
FLORIDa,, OPPOSING ENACTMENT INTO LAW
OF PROPOSED FLORIDA HOUSE BILL NUMBER
3185, WHICH BILL INTENDS TO ARBITRARILY
REQUIRE THAT CUSTOMERS OF MANY
INVESTOR OWNED WATER AND
WASTEWATER UTILITIES WILL HAVE TO PAY
COSTS OF CAPITAL IMPROVEMENTS THAT
SHOULD BE PAID FOR BY THE UTILITY'S
FUTURE CUSTOMERS, AND WHICH BILL
WILL OVER TIME REQUIRE THAT UTILITY
CUSTOMERS MUST PAY FOR MANY
ENVIRONMENTAL COMPLIANCE COSTS THAT
SHOULD BE CHARGED TO THE UTILITY'S
STOCKHOLDERS
WHEREAS, House Bill 3185 (HB 3185) has been proposed recently for
enactment into law by action of the Florida Legislature; and
WHEREAS, proposed HB 3185 applies to the Florida Public Service
Commission and to all Florida counties that now regulate, or hereafter will
regulate, the rates of investor owned water and wastewater utilities; and
WHEREAS, a primary purpose of proposed HB 3185 is to have
"considered" for inclusion into a utility's rate base as "used and useful in the
public service" utility property, including land acquired or facilities constructed or
to be constructed if such property is needed to serve customers five (5) years (or
more than 5 years in some cases) after the expected date of the final order issued
in the respective rate increase application proceeding; and
WHEREAS, another primary purpose of proposed HB 3185 is to charge the
utility's customers the full amount of "environmental compliance costs" which
costs include, but are not limited to, all reasonable expenses and fair return on any
prudent investment incurred by the utility in complying with the requirements or
conditions contained in any permitting, enforcement, or similar decisions of any
federal, state, or local governmental agency with environmental compliance
jurisdiction; and
WHEREAS, proposed HB 3185 unnecessarily and arbitrarily restricts
each county's now existing discretion to consider the merits of approving or
disapproving the utility's appropriate "margin reserve" and in determining what
"environmental compliance costs" should be paid by the utility's customers and
which should be charged to the utility's stockholders.
8 E-I
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that:
The Board of County Commissioners of Collier County, Florida,
opposes passage of proposed HB 3185.
The Board of County Commissioners of Collier County, Florida,
requests that its local Legislative Delegation actively oppose
enactment into law of proposed HB 3185.
The Florida Association of Counties may utilize this Resolution as it
deems appropriate to oppose enactment into law of proposed HB
3185 and any substantially similar Senate Bill(s).
THIS RESOLUTION ADOPTED after motion, second and majority vote in
favor of adoption this /4~ day of_/01~(t/Aqt~_tt/t ., 1997.
A~'T. EST:
4)WIGHT E B~,,.,CK, CLERK
Approved as to fo~
and legal sufficiency:
~omas C. Palmer
Assistant CounW Attorney
BOARD OF COUNTY COMMISSIONERS
COLLIF;,K COUNTY, FLO~DA /
' q~imodyp' LTffancock, Chairman