The complete process to acquire the Orangewood Lakes Services Inc. utility system is subject to several provisions of Florida law. A summary of the requirements and necessary City Council action items are included in the following Table 1.1. As City Council is aware, on February 5, 2019 during its regular meeting items one (1) thru five (5) were approved. In accordance with several provisions of Florida law, Resolution No. 2019-02 contained language for written objections to be filed from the public by February 12, 2019 to the City and heard by City Council within 30 days of the February 12, 2019 date. Item five (5) does not apply as no objections were received by the February 12, 2019 date.
If Resolution No. 2019-06 is approved, it accomplishes action items six (6) and seven (7).
TABLE 1.1
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Action Item
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Associated Ordinance or Resolution
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Date for Council Consideration
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1
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Approve Purchase and Sale Agreements pursuant to section 180.301, Florida Statutes
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Resolution No. 2019-01
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February 5, 2019
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2
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Propose extension of City’s utility system pursuant to section 180.03
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Resolution No. 2019-02
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February 5, 2019
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3
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Set Public Hearing for Authorization of Extension of Utility and Rate Increase Hearing
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Resolution No. 2019-02
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February 5, 2019
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4
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Consider Financing Reimbursement Resolution and RFP
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Resolution No. 2019-04
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February 5, 2019
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5
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Hold hearing on any objections filed pursuant to Resolution No. 2019-02
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N/A – No objections filed
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N/A
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6
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Allow public comment on rate increase
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Resolution No. 2019-06
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March 19, 2019
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7
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Authorize Extension of City’s utility system pursuant to section 180.04, Florida Statutes
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Resolution No. 2019-06
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March 19, 2019
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I. Notice of Utility Rate Increase
On February 15, 2019, the City mailed notices to all customers of the Orangewood Lakes Services Inc. utility system to inform them of the City’s utility rates, which will be applied to them if the City acquires the system. A copy of the form of the notice is attached as Attachment A. Current Orangewood Lakes Services Inc. residential 5/8 meter water base charge is $9.02 + $1.45 per thousand gallons used. For wastewater treatment a base charge of $24.83 + $5.66 per thousand gallons treated. In comparison the City’s water base charge is $12.89 + $4.27 per thousand gallons used. For wastewater treatment a base charge of $16.16 + $6.03 per thousand gallons treated.
The City Council should allow public comment on this notice and the rate increase to the customers of these systems prior to considering the resolution.
II. Extending the City’s Water Utility System – Sections 180.03 and 180.04, Florida Statutes
If the City purchases the Orangewood Lakes Services Inc. utility system, it is effectively extending its water utility system.
Extending the system is governed by two Florida Statutes: Section 180.03 and 180.04. Each statute requires a resolution.
The City Council adopted a resolution at its February 5, 2019 meeting satisfying section 180.03. This resolution is the second and final resolution to satisfy the requirements of section 180.04. A copy of this resolution is attached as Attachment B.
The full text of 180.04 is included as Attachment C and sets forth the matters required to be addressed in the resolution.
III. Condition Precedent to Closing
Under the purchase and sale agreements for the systems, the closing is conditioned upon satisfying the requirements of section 180.04.