The URL can be used to link to this page

Home My WebLink About1993 04 30 - Request for an IncreaseHOPPING BOYD GREEN & SAMS ATTORNEYS AND COUNSELORS CARLOS ALVAREZ 123 SOUTH CALHOUN STREET JAMES S. ALVES JONATHAN S. FOX BRIAN H. B18EAU POST OFFICE BOX 6526 KATHLEEN BLIZZARD GARY K. HUNTER, JR. ELIZABETH C. BOWMAN TALLAHASSEE, FLORIDA 32314 WILLIAM L. BOYD, W (904) 222-7500 RICHARD S. BRIGHTMAN ANGELA R. MORRISON PETER C. CUNNINGHAM FAX (904) 224-8551 RALPH A. DEMEO LAURA BOYD PEARCE THOMAS M. DEROSE FAX (904) 681-2964 WILLIAM H. GREEN MICHAEL P. PETROVICH WADE L. HOPPING DOUGLAS S. ROBERTS FRANK E. MATTHEWS JULIE B., ROME RICHARD D. NELSON KRISTIN C. RUSIN WILLIAM D. PRESTON CECELIA C. SMITH CAROLYN S. RAEPPLE GARY P. SAMS April 30, 1993 ROBERT A SMITH W, Roo CHERYL G. STUART Honorable Lonnie Powell rs T:ti Cityof Sebastiany.,f, P.O. sox 780127 MANi Sebastian, Florida 32978 Re: General Development Utilities, Inc. -- Request for an Increase in Water and Sewer Rates, Carrying Cost Recovery Charges, and Service Availability Charges for the Sebastian Highlands Division Dear Mayor Powell: Pursuant to Section 3 of Ordinances 0-81-8 and 0-81-9, dated May 11, 1981 (the water and sewer franchises), General Development Utilities, Inc. (GDU) hereby gives notice to the City Council of the City of Sebastian that the Company deems its necessary to amend its charges for water and sewer services provided within its franchise area in the City of Sebastian. The present rates are insufficient, and under the franchise agreement the Company is entitled to increased rates that are just, reasonable and compensatory, and will provide the Company with a fair and reasonable rate of return on its investment in property used and useful in the public service. .The current and proposed water and sewer rates are attached hereto and made a part hereof as Exhibit I. Comprehensive data supporting the proposed rates, and the proposed increases in the Company's deposits, connection charges, and reconnection charges, is attached hereto as Exhibits I through IV. The Company is also requesting authority to implement a "carrying cost recovery charge" to help defray the carrying costs of water and sewer facilities held for future use. The CCRC is recovered from new customers at the time they C. ALLEN CULP, JR. JONATHAN S. FOX JAMES C. GOOOLETT GARY K. HUNTER, JR. DALANA W. JOHNSON RICHARD W. MOORE ANGELA R. MORRISON MARISEL N. NICHOLSON LAURA BOYD PEARCE GARY V. PERKO MICHAEL P. PETROVICH DOUGLAS S. ROBERTS JULIE B., ROME KRISTIN C. RUSIN CECELIA C. SMITH .-.- {�QUNSEL W, Roo tl, AFFR ZO15'43 Honorable Lonnie Powell rs T:ti Cityof Sebastiany.,f, P.O. sox 780127 MANi Sebastian, Florida 32978 Re: General Development Utilities, Inc. -- Request for an Increase in Water and Sewer Rates, Carrying Cost Recovery Charges, and Service Availability Charges for the Sebastian Highlands Division Dear Mayor Powell: Pursuant to Section 3 of Ordinances 0-81-8 and 0-81-9, dated May 11, 1981 (the water and sewer franchises), General Development Utilities, Inc. (GDU) hereby gives notice to the City Council of the City of Sebastian that the Company deems its necessary to amend its charges for water and sewer services provided within its franchise area in the City of Sebastian. The present rates are insufficient, and under the franchise agreement the Company is entitled to increased rates that are just, reasonable and compensatory, and will provide the Company with a fair and reasonable rate of return on its investment in property used and useful in the public service. .The current and proposed water and sewer rates are attached hereto and made a part hereof as Exhibit I. Comprehensive data supporting the proposed rates, and the proposed increases in the Company's deposits, connection charges, and reconnection charges, is attached hereto as Exhibits I through IV. The Company is also requesting authority to implement a "carrying cost recovery charge" to help defray the carrying costs of water and sewer facilities held for future use. The CCRC is recovered from new customers at the time they Honorable Lonnie Powell April 30, 1993 Page 2 connect to the system. Exhibit V contains more detail on the proposed CCRC. Finally, the Company seeks to modify its Service Availability/Main Extension Charges to more accurately reflect current costs. These charges will be incurred only by new customers as they connect to the system. Exhibit VI contains the present and proposed charges, together with supporting detail. GDU hereby requests that the proposed revisions to the monthly rates and other charges be noticed for public hearing at the earliest opportunity, but in any event no later than 60 days from the date of this notice, as required by the franchise ordinances. As you know, the City has made an offer to GDU to purchase the Sebastian Highlands system. GDU is concerned about the conflict of interest that would occur if the City Council were to consider the rate request at the same time it is pursuing acquisition of the system. To mitigate this conflict of interest, GDU requests that the City obtain the services of an independent hearing officer from the State of Florida Division of Administrative Hearings to conduct the public hearings on the rate request and to enter a recommended order, based on the evidence, for consideration and final action by the City Council. The use of such a hearing officer is expressly permitted by Section 120,.65(9), Florida Statutes. To facilitate the City making arrangements for the use of an independent hearing officer, GDU is enclosing a proposed form of "Hearing Officer Agreement." This is modeled after an agreement used by Seminole County to obtain an independent hearing officer in connection with a public evidentiary hearing conducted pursuant to Chapter 190, Florida Statutes. Copies of correspondence concerning this application should be sent to the undersigned attorneys for GDU, and to: Honorable Lonnie Powell April 30, 1993 Page 3 Charles E. Fancher, Jr. President General Development Utilities, Inc. 2601 South Bayshore Drive Miami, FL 33133-5461 Sincerely, 6'6� Richard M on Cheryl Stuart Attorneys for GDU RDM/mee Enclosures cc: Vice Mayor Frank Oberbeck Councilmember Norma Damp Councilmember Robert Freeland Councilmember Carolyn Corum Robb McClary, City Manager Charles Nash, City Attorney 19WA HEARING OFFICER AGREEMENT THIS AGREEMENT is made and entered into this day of 1993, by and between the CITY OF SEBASTIAN, a municipal corporation, acting by and through its City Council, whose address is hereinafter referred to as the "CITY," and the STATE OF FLORIDA, DIVISION OF ADMINISTRATIVE HEARINGS, whose address is The DeSoto Building, 1230 Apalachee Parkway, Tallahassee, Florida 32399- 1550, hereinafter referred to as the "DIVISION." W I T N E S S E T H: WHEREAS, the CITY has received a notice and application seeking approval of a rate increase by General Development Utilities, Inc. ("GDU") pursuant to Section 3 of Ordinances 0-81-8 and 0-81-9 of the City of Sebastian (the "Franchise Ordinances"), and the CITY has determined to conduct the evidentiary public hearing regarding such notice as provided for in the Franchise Ordinances, utilizing the services of a Hearing Officer; and WHEREAS, the DIVISION has the capability to provide Hearing Officer services to the CITY; and WHEREAS, it has been determined by the CITY and the DIVISION that a contractual arrangement for the provision of a Hearing Officer is available for the above -stated purpose under the authority of Section 120.65(9), Florida Statutes; -1- NOW, THEREFORE, the parties hereto for and in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, do hereby agree as follows: SECTION 1. SERVICES. The DIVISION agrees to make available to the CITY a Hearing Officer to conduct an evidentiary public hearing and to promulgate Recommended Findings of Fact and Conclusions of Law concerning the appropriate rate relief, if any, to be granted to CDU pursuant to the factors specified in the Franchise Ordinances and the body of law governing the rates and charges of public utilities. SECTION 2. COMPENSATION DIVISION the sum of The CITY agrees to compensate the Dollars ($ ) per hour for a Hearing Officer's services in preparing for, travelling to, and conducting the evidentiary hearing, and for preparing the Recommended Findings of Fact and Conclusions of Law. Additionally, the CITY agrees to pay the actual travel expenses of the Hearing Officer in accordance with the provisions of Chapter 112, Florida Statutes. The DIVISION agrees, if possible, to arrange the travel schedule of the Hearing Officer in such a manner that he or she can accomplish other work during the trip, and, in such event, travel expenses and travel time will be pro -rated for services to the CITY. At the conclusion of the hearing, the DIVISION agrees to provide the CITY with an itemized statement of the charges and costs described herein for prompt reimbursement. -2- SECTION 3. PROCEDURES. The CITY, in order to request the services of a Hearing Officer from the DIVISION, shall initiate a letter to the Director, Division of Administrative Hearings (Attn: Jim York) requesting the services of a Hearing Officer and shall include with such request a copy of the notice and application for rate increase, and supporting documentation, and any other material relevant to the proceedings. The DIVISION agrees to make every effort to assign a Hearing Officer within ten (10) days of its receipt of the letter initiating such request. The hearing will be scheduled to commence on 1993, at , and to continue, if necessary, from day to day until concluded. In order to maximize the opportunity for public input, the hearing shall be adjourned after the conclusion of the afternoon session on the first day of hearing, and an evening session shall be scheduled to begin at p.m. on that date. The CITY recognizes that the Hearing Officer will incur overnight travel expenses and that the hearing may require more than a single day. The CITY agrees to forward all necessary pleadings and other case documents to the DIVISION in sufficient time to provide all parties adequate notice. SECTION 4. QUALIFICATIONS OF HEARING OFFICER. The DIVISION agrees to use in hearings conducted on behalf of the CITY only a Hearing Officer who functions as full time Hearing Officer for the State of Florida, Division of Administrative Hearings. 1954].1 -3- SECTION 5. THE HEARING. The hearing shall be conducted pursuant to Chapter 120, Florida Statutes, Ordinances 0-81-8 and 0-81-9 of the City of Sebastian and, where not in direct conflict with this Agreement, pursuant to the rules of the Division pursuant to Chapter 22-I, Florida Administrative Code. SECTION 6. FINAL WORK PRODUCT. The DIVISION agrees that the Hearing Officer's Recommended Findings of Fact and Conclusions of Law shall be provided to the CITY on or before 1993. A facsimile transmittal will be acceptable. SECTION 7. NOTICES. Whenever either party desires to give notice unto the other or whenever the DIVISION invoices the CITY subsequent to the submission of the Recommended Findings of Fact and Conclusions of Law, the same may be sent to: FOR THE CITY• FOR THE DIVISION: Mr. Jim York Assistant Director Florida Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-1550 SECTION 8. LIABILITY OF PARTIES. Without either party being deemed to waive sovereign immunity, each party agrees, to the extent authorized by law, to indemnify and hold harmless the other party for the acts and omissions of its officers, agents and employees. The DIVISION and the hearing officer shall not be -4- deemed employees of the CITY, but shall be deemed independent contractors. ATTEST: DIVISION OF ADMINISTRATIVE HEARINGS WA SHARYN L. SMITH, Director Date: CITY COUNCIL CITY OF SEBASTIAN, FLORIDA Date: As authorized for execution by the City Council of the City of Sebastian at their 1993 regular meeting. -5-