05-24-1994 Utility AuthorityCITY OF OKEECHOBEE
M E M O R A N D U M
TO: John J. Drago DATE: May 24, 1994
THRU: SUBJECT: Utility
Authority
THRU:
FROM: John Cook, City-Attorney
I have enclosed a copy of Florida Statues 373.1962, which
pertains to formation of Utility While the issues
involved in our situation are much more detailed, this statute
may assist you somewhat in your determination.
Note also that my research reveals that it would appear the
approval of an authority would be in the nature of an order
issuing from the Secretary of DEP.
JRC /dev
enclosure
c: Councilmembers
373.1961 NATURAL RESOURCES; CONSERVATION, ETC.
Title 28
district may also issue bond anticipation notes in accordance with the provi-
sions of s. 373.584.
(9) May join with one or more other water management districts, counties,
municipalities, or regional water supply authorities for the purpose of carry-
ing out any of its powers, and may contract with such other entities to finance
acquisitions, construction, operation, and maintenance. The contract may
provide for contributions to be made by each party thereto, for the division
and apportionment of the expenses of acquisitions, construction, operation,
and maintenance, and for the division and apportionment of the benefits,
services, and products therefrom. The contracts may contain other covenants
and agreements necessary and appropriate to accomplish their purposes.
Historical Note
Derivation: Laws 1976, c. 76 -243, 14.
Laws 1987, c. 87 -347, 2. Laws 1974, c. 74 -114, 2.
Laws 1982, c. 82 -101, 7.
1. Construction and application
Prohibition of this section pertaining to use
of eminent domain in one situation cannot be
used as authority for its use by implication in
another, as this section must be strictly con-
strued. Village of Tequesta v. Jupiter Inlet
Corp., 371 So.2d 663 (1979) certiorari denied
100 S.Ct. 453, 444 U.S. 965, 62 L.Ed.2d 377.
Under the Water Resources Act, agencies
should consider total effect of water withdraw-
Notes of Decisions
al project on environment and not merely ef-
fect on single resource. Pinellas County v.
Lake Padgett Pines, App., 333 So.2d 472 (1976).
Environmental Land and Water Manage-
ment Act does not place local government in
position to control actions taken under the
Water Resources Act when those actions are
vital to supplying water on regional basis. Id.
356
373.1962. Regional water supply authorities
(1) By agreement between local governmental units created or existing
pursuant to the provisions of Art. VIII of the State Constitution, pursuant to
the Florida Interlocal Cooperation Act of 1969, s. 163.01, and upon the
approval of the Governor and Cabinet sitting as head of the Department of
Natural Resources to ensure that such agreement will be in the public interest
and complies with the intent and purposes of this act, regional water supply
authorities may be ,created for the purpose of developing, recovering, storing,
and supplying water for county or municipal purposes in such a manner as
will give priority to reducing adverse environmental effects of excessive or
improper withdrawals of water from concentrated areas. In approving said
agreement the Governor and Cabinet, sitting as head of the Department of
Natural Resources, shall consider, but not be limited to, the following:
(a) Whether the geographic territory of the proposed authority is of suffi-
cient size and character to reduce the environmental effects of improper or
excessive withdrawals of water from concentrated areas.
(b) The maximization of economic development of the water resources
within the territory of the proposed authority.
(c) The availability of a dependable and adequate water supply.
373.1962
WATER RESOURCE PLAN
Ch. 373
(d) The ability of any proposed authority to design, construct, operate, and
maintain water supply facilities in the locations, and at the times necessary, to
ensure that an adequate water supply will be available to all citizens within
the authority.
(e) The effect or impact of any proposed authority on any municipality,
county, or existing authority or authorities.
(f) The existing needs of the water users within the area of the authority.
(2) In addition to other powers and duties agreed upon, and notwithstand-
ing the provisions of s. 163.01, Florida Statutes, such authority may:
(a) Upon approval of the electors residing in each county or municipality
within the territory to be included in any authority, levy ad valorem taxes, not
to exceed one half mill, pursuant to s. 9(b), Article VII of the State Constitu-
tion. No tax authorized by this paragraph shall be levied in any county or
municipality without an affirmative vote of the electors residing in such
county or municipality.
(b) Acquire water and water rights; develop, store, and transport water;
provide, sell and deliver water for county or municipal uses and purposes;
provide for the furnishing of such water and water service upon terms and
conditions and at rates which will apportion to parties and nonparties an
equitable share of the capital cost and operating expense of the authority's
work to the purchaser.
(c) Collect, treat, and recover wastewater.
(d) Not engage in local distribution.
(e) Exercise the power of eminent domain in the manner provided by law
for the condemnation of private property for public use to acquire title to
such interest in real property as is necessary to the exercise of the powers
herein granted, except water and water rights already devoted to reasonable
and beneficial use or any water production or transmission facilities owned
by any county or municipality.
(f) Issue revenue bonds in the manner prescribed by the revenue bond act
of 1953, as amended, part I, chapter 159, Florida Statutes, to be payable solely
from funds derived from the sale of water by the authority to any county or
municipality. Such bonds may be additionally secured by the full faith and
credit of any county or municipality, as provided by s. 159.16, Florida
Statutes, or by a pledge of excise taxes, as provided by s. 159.19, Florida
Statutes. For the purpose of issuing revenue bonds, an authority shall be
considered a "unit" as defined in s. 159.02(2), Florida Statutes, and as that
term is used in the revenue bond act of 1953, as amended. Such bonds may
be issued to finance the cost of acquiring properties and facilities for the
production and transmission of water by the authority to any county or
municipality, which cost shall include the acquisition of real property and
easements therein for such purposes. Such bonds may be in the form of
refunding bonds to take up any outstanding bonds of the authority or of any
county or municipality where such outstanding bonds are secured by proper-
ties and facilities for production and transmission of water, which properties
357
Y
n
s
s.
f-
v.
s).
e-
in
ze
re
d.
Lg
0
e
st
y
g,
AS
d
)f
i-
373.1962 NATURAL RESOURCES; CONSERVATION, ETC.
Title 28
and facilities are being acquired by the authority. Refunding bonds may be
issued to take up and refund all outstanding bonds of said authority that are
subject to call and termination, and all bonds of said authority that are not
subject to call or redemption, when the surrender of said bonds can be
procured from the holder thereof at prices satisfactory to the authority. Such
refunding bonds may be issued at any time when, in the judgment of the
authority, it will be to the best interest of the authority financially or
economically by securing a lower rate of interest on said bonds or by
extending the time of maturity of said bonds or, for any other reason, in the
judgment of the authority, advantageous to said authority.
(g) Sue and be sued in its own name.
(h) Borrow money and incur indebtedness and issue bonds or other evi-
dence of such indebtedness.
(i) Join with one or more other public corporations for the purpose of
carrying out any of its powers and for that purpose to contract with such
other public corporation or corporations for the purpose of financing such
acquisitions, construction, and operations. Such contracts may provide for
contributions to be made by each party thereto, for the division and appor-
tionment of the expenses of such acquisitions and operations, and for the
division and apportionment of the benefits, services, and products therefrom.
Such contract may contain such other and further covenants and agreements
as may be necessary and convenient to accomplish the purposes hereof.
(3) When it is found to be in the public interest, for the public convenience
and welfare, for a public benefit, and necessary for carrying out the purpose
of any regional water supply authority, any state agency, county, water
control district existing pursuant to chapter 298, water management district
existing pursuant to chapter 373, municipality, governmental agency, or
public corporation in this state holding title to any interest in land is hereby
authorized, in its discretion, to convey the title to or dedicate land, title to
which is in such entity, including tax reverted land, or to grant use rights
therein, to any regional water supply authority created pursuant to this
section. Land granted or conveyed to such authority shall be for the public
purposes of such authority and may be made subject to the condition that in
the event said land is not so used, or if used and subsequently its use for said
purpose is abandoned, the interest granted shall cease as to such authority
and shall automatically revert to the granting entity.
(4) Each county or municipality which is a party to an agreement pursuant
to subsection (1) shall have a preferential right to purchase water from the
regional water supply authority for use by such county or municipality.
(5) In carrying out the provisions of this section, any county wherein water
is withdrawn by the authority shall not be deprived, directly or indirectly, of
the prior right to the reasonable and beneficial use of water which is required
adequately to supply the reasonable and beneficial needs of the county or any
of the inhabitants or property owners therein.
358
373.1963
WATER RESOURCE PLAN
Ch. 373
(6) Upon a resolution adopted by the governing body of any county or
municipality, the authority may, subject to a majority vote of its voting
members, include such county or municipality in its regional water supply
authority upon such terms and conditions as may be prescribed.
(7) The authority shall design, construct, operate, and maintain facilities in
the locations and at the times necessary to insure that an adequate water
supply will be available to all citizens within the authority.
Derivation:
Laws 1986, c. 86-22, 1.
Laws 1979, c. 79 -5, 35.
Laws 1977, c. 77 -174, 1.
Laws 1974, c. 74 -114, 7.
Revisor's Note -1975:
Section 11, ch. 75 -22 transferred powers,
duties, and functions of the Department of
Establishment of authorities 1
Project authorization 2
1. Establishment of authorities
Appeals from approval or denial of agree-
ments establishing regional water supply au-
thorities are to the environmental regulation
commission pursuant to Laws 1975, c. 75-22.
Op.Atty.Gen., 077 -51, June 9, 1977.
The authority to approve or deny agreements
establishing regional water supply authorities
pursuant to this section has been transferred
from the governor and cabinet, sitting as head
of the department of natural resources, to the
Historical Note
Natural Resources relating to water manage-
ment to the Department of Environmental Reg
ulation.
Notes of Decisions
department of environmental regulation pursu-
ant to Laws 1975, c. 75-22. Id.
The secretary of the department of environ-
mental regulation has the authority to take
final action on the approval or denial of agree-
ments establishing regional water supply au-
thorities pursuant to this section, rather than
the environmental regulation commission. Id.
2. Project authorization
Under the Water Resources Act, agencies
should consider total effect of water withdraw-
al project on environment and not merely ef-
fect on single resource. Pinellas County v.
Lake Padgett Pines, App., 333 So.2d 472 (1976).
373.1963. Assistance to West Coast Regional Water Supply Authority
(1) In lieu of the provisions in paragraph 373.1962(2) (a), the Southwest
Florida Water Management District shall assist the West Coast Regional
Water Supply Authority for a period of 5 years, terminating December 31,
1981, by levying an ad valorem tax, upon request of the authority, of not more
than 0.05 mill on all taxable property within the limits of the authority.
During such period the corresponding basin board ad valorem tax levies shall
be reduced accordingly.
(2) The authority shall prepare its annual budget in the same manner as
prescribed for the preparation of basin budgets, but such authority budget
shall not be subject to review by the respective basin boards or by the
governing board of the district.
(3) The annual millage for the authority shall be the amount required to
raise the amount called for by the annual budget when applied to the total
assessment on all taxable property within the limits of the authority, as
determined for county taxing purposes.
359