3/14/2019 Florida Governmental Utility Authority Questions Questions Presentation • Do all water purveyors have a CCC • Do all water purveyors have a CCC Program? Program? Chris Saliba Cross Connection Control Program Administration • Of those that do, how many water purveyors actively enforce CCC Programs in Florida? 1 2 3 Wrongfully Accused Wrongfully Accused Presentation Objectives • Larger utilities are not immune • Larger utilities are not immune • Describe Governmental Utility Authority (GUA) concept – Large public utility system in Florida struggled authorized under Florida Law – Lab was under FBI surveillance for weeks with E. coli outbreak in drinking water system • Explain unique “ Portabl e” statewide Florida – Further investigations reveled E. coli was not the – The backflow department identified a cross Governmental Utility Authority (FGUA) result of a cross connection at all and was in connection and presented it as a potential • Provide a poor water quality, private-to-public utility fact the result of recent modifications to the source of contamination purchase turnaround case study treatment process at the municipal drinking – Mayor publicly declared cross connection was • Helpful discussion and answer questions water facility the cause of the outbreak – Cross connection was eventually ruled out as cause of contamination 4 5 6 1
3/14/2019 The Governmental Utility Authority Principal Requirements to Florida GUA Principal Powers (GUA) Concept Form and Modify GUA • Acquire, construct, own, operate, manage, improve and expand public facilities • Separate utility authorities are authorized under • Two or more government entities • Provide for mandatory connections Section 163.01(7)(g)1, Florida Statutes • Interlocal agreement • Levy rates, fees and charges • The GUA is an innovative home rule mechanism • Consent of “host” governments to acquire • Acquire land and rights and interests for utility • GUA’s are governed by a locally-appointed Board • Appointment of Board Member (non-elected) • Apply for, receive, and accept State, Federal Grants • Participating local governments have control over the • Issue bonds and other indebtedness GUA but do not incur any liability for debt or operations • Impose, collect and enforce special assessments • The GUA is a multi-jurisdictional entity for utility ownership, operation and management 7 8 9 Potential Motivations for Joining Advantages of a GUA Advantages of a GUA (Cont.) or Creating a GUA • Enables local government to better influence service • Bargaining power and potential enhanced credit quality of current system(s) and maintain control (seat • Future system improvements financed on a tax- • Improve infrastructure, customer service and finances on Board of Directors) exempt basis • Alternative mechanism of public ownership • Places no burden on local government financial • Economies of scale resources • Provide critical utility resources to local governments • Dedicated attention to improving utility customer • Having independent bonding capacity; assets and debt • Maintain benefit of current or future equity in utility remain solely the responsibility of the GUA and would service systems not adversely affect the local government’s credit • Allows dedicated focus on utility issues • Increased transparency 10 11 12 2
3/14/2019 FGUA – A Successful GUA Political Advantage FGUA Characteristics • The Florida Governmental Utility Authority (FGUA) was formed • $87.5 million annual operating budget and $62.1 in 1999 through an interlocal agreement between Brevard, • Participating governments can structure inter- million CIP Lee, Polk and Sarasota Counties local agreement based on local policy preferences • No employees: Growth to almost $450 million in assets • – Regulate Rates – Fully contracted management services/owner’s • Over $300 million in improvements to facilities owned since – Approve CIP representative (Government Services Group, Inc.) the FGUA’s inception – Set service standards – Fully contracted operations, maintenance, customer • Successfully acquired, improved and transitioned systems to – Require extensive customer outreach service and billing (U.S. Water) Sarasota, Brevard, Citrus and Hillsborough Counties, as well – Local governments can acquire assets at any time as TOHO Water Authority – Contracted outside counsel Visit FGUA.com 13 14 15 FGUA Evolution Timeline FGUA Transaction History FGUA Evolution Timeline Transaction Year Purchase/Sale Utility / Utility System County / Counties 1999 Purchase Avatar Utilities (Florida Cities Water Brevard, Collier, Hillsborough, Lee, Co & Poinciana Utilities Osceola, Polk & Sarasota 2000 Sale Barefoot Bay Brevard 2002 Sale Sarasota Sarasota 2003 Purchase Florida Water Services Corporation Citrus, Lee Buy Buy Lindrick 2004 Sale Carrollwood Hillsborough Formation Sell Citrus Florida (Pasco) Avatar Water and Buy City of and North Purchase Services Poinciana Dunnellon 2007 Sale Citrus Citrus Fort Myers 1999 2003 2007 (Lee)2010 2018 2007 Sale Poinciana Osceola, Polk 2009 Purchase Aloha Utilities Pasco 2009 Purchase Consolidated Systems Pasco 2010 Purchase Lindrick Service Corporation Pasco 2000 2004 2009 2011 2013 2010 Purchase North Fort Myers Utilities Lee, Collier Barefoot Sell Buy Aloha and Buy Buy Aqua Bay Sale Carrollwood to Consolidated MacDill Utilities of 2011 Purchase MacDill AFB Systems Hillsborough To Brevard Hillsborough in Pasco System in Florida Tampa 2012 Purchase Mad Hatter Utilities Pasco 2013 Purchase Aqua Utilities Florida Alachua, Citrus, Hardee, Lake, Lee, Marion, Orange, Pasco, Polk, Seminole, Volusia, Putnam 2017 Sale Golden Gate Utilities Collier 2018 Purchase Dunnellon Utility Systems Marion 16 17 18 3
3/14/2019 Current FGUA Structure FGUA Footprint The Better Water – Aloha Story FGUA Aqua-Pasco Sub-System FGUA Aqua-Unified Sub-System Pre – 2013 FGUA System Expanded FGUA Aqua Unified System Expanded FGUA Aqua Lake Aqua System 19 20 21 Aloha Highlights, Aloha Highlights Environmental Problems Aloha Highlights, Environmental Problems • Aloha Utilities was founded in 1970 serving communities in and around New Port Richey, including the Trinity area • Aloha Utilities was being fined by the Southwest PASCO COUNTY • The system consists of 12,152 water and Florida Water Management District for over-pumping 11,809 wastewater customers in over 13 from its wells square miles • Customer’s serious water quality complaints, including black, foul odor and corrosive water became increasingly escalated for Aloha Utilities in the mid 1990’s Taken February 2009 22 23 24 4
3/14/2019 Aloha Highlights, Aloha Highlights, Aloha Highlights, The Customer Problem The Customer Problem Environmental Problems • The Committee for Better Water Now (CBWN) was • Highly galvanized, organized to take fight to formed as a customer advocacy group to seek County Commission, Public Service Commission resolution to water quality (PSC) and legislators • County government lacked regulatory authority • Resources of owner diminished effectiveness of fines by Southwest Florida Water Management District (SWFWMD) 25 26 27 FGUA and Pasco County The Intergovernmental Solution Aloha Highlights Aloha Milestones • Pasco County took lead to recruit a special purpose • Customers found PSC largely unresponsive • Comprehensive assessment of Aloha System (utility) unit of government to act on its behalf deficiencies performed and corrective capital plan • County and owner could not reach terms for county • Florida Governmental Utility Authority (FGUA) developed by FGUA with county involvement purchase became the County partner • Negotiations to acquire concluded with purchase • FGUA Interlocal Agreement & authorization of in February 2009 potential acquisition approved by the Pasco County • Organized customers advocated for purchase and Board of County Commissioners on 2/27/08 rate increases of 40% to acquire and to fix problems 28 29 30 5
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