House Bill 1629er

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    1999 Legislature                                       HB 1629



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  2         An act relating to Monroe County; amending

  3         chapter 69-1191, Laws of Florida, as amended;

  4         revising provisions relating to the Utility

  5         Board of the City of Key West; providing an

  6         effective date.

  7

  8  Be It Enacted by the Legislature of the State of Florida:

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10         Section 1.  Section 11 of chapter 69-1119, Laws of

11  Florida, as amended by chapters 75-410, 75-412, and 76-396,

12  Laws of Florida, is amended to read:

13         Section 11.  The Utility Board of the City of Key West,

14  Florida, shall have the full, complete and exclusive power and

15  right to manage, operate, maintain, control, extend, extend

16  beyond the limits of the City of Key West, Florida, in Monroe

17  County, Florida, the electric public utility owned by said

18  city, including the maintenance, operation, extension and

19  improvement thereof, and including all lines, poles, wires,

20  pipes, mains and all additions to and extensions of the same,

21  and all buildings, stations, substations, machinery,

22  appliances, land and property, real, personal and mixed, used

23  or intended for use in or in connection with said electric

24  public utility, and the Utility Board shall have all of the

25  powers in connection with such other public utilities

26  hereafter acquired by said board that are granted by this act

27  to said board with respect to the electric public utility now

28  owned by said city. The said Utility Board shall have

29  exclusive power and authority to determine what improvements

30  shall be made to all such public utilities. The said Utility

31  Board shall adopt annual budgets and amend same from time to


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  1  time, but in so doing shall conform to the requirements, if

  2  any, of any existing ordinance or resolution authorizing the

  3  issuance of revenue bonds now or hereafter against the income

  4  of the said electric public utility, as may be determined by

  5  the Utility Board of the City of Key West, Florida, for the

  6  purpose of refunding outstanding revenue bonds as well as for

  7  any other purposes which the Utility Board of said city deems

  8  proper in the management, operation, maintenance, control,

  9  improvement, extension, betterment, financing and refinancing

10  of the electric public utility owned by the City of Key West,

11  Florida, as well as for purposes of acquisition, purchase,

12  building and construction and operation of additional public

13  utilities which are deemed proper by said Utility Board, and

14  revenue bonds may also be issued against the income of any

15  additional public utilities so acquired, and the granting of

16  such authority to the Utility Board of the City of Key West,

17  Florida, to issue revenue bonds against income of the electric

18  public utility owned by said city, or against the income of

19  any additional public utilities hereafter acquired by said

20  Utility Board, is exclusive to said board, and the governing

21  body of said city shall not have the right to issue any such

22  bonds or otherwise incur any indebtedness or obligations

23  whereby the income of said electric public utility, or the

24  income of any additional public utilities, hereafter acquired

25  by said Utility Board, becomes charged for the payment

26  thereof. The maturity dates and rate of interest of any bonds

27  issued hereunder shall be determined and fixed by the Utility

28  Board of the City of Key West, Florida, and said board shall

29  have the exclusive right to sell said bonds at prices to be

30  determined by said board. The Utility Board of the City of Key

31  West, Florida, is authorized and empowered to adopt such


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  1  resolutions as may be necessary or advisable in connection

  2  with the authorization, execution, issuance, sale and delivery

  3  of the revenue bonds authorized hereunder. Prior to the

  4  validation and issuance of any bonds authorized hereunder,

  5  said board shall obtain the approval of the City Commission of

  6  the City of Key West, Florida, by appropriate ordinance.

  7         Prior to any sale of bonds, the Utility Board shall

  8  cause notice to be given by publication in some daily

  9  newspaper published and having a general circulation in the

10  City of Key West, Florida, that said board will receive bids

11  for the purchase of the bonds at the office of the Utility

12  Board in said city. Said notice shall be published twice, and

13  the first publication shall be given no less than fifteen (15)

14  days prior to the date set for receiving the bids. Said notice

15  shall specify the amount of the bonds offered for sale and

16  shall state that the bids shall be sealed bids, shall give the

17  schedule of the maturities of the proposed bonds and such

18  other pertinent information as may be prescribed in the

19  resolution authorizing the issuance of such bonds or any

20  resolution subsequent thereto. Bidders may be invited to name

21  the rate or rates of interest and invite bids thereon. In

22  addition to publication of notice of the proposed sale, the

23  Utility Board shall also give notice in writing of the

24  proposed sale, enclosing a copy of such advertisement, to the

25  Chairman of the Florida Development Commission, and to at

26  least three (3) recognized bond dealers in the State, such

27  notices to be given not less than ten (10) days prior to the

28  bids.

29         All bonds and refunding bonds issued pursuant to this

30  act shall be sold at public sale, and shall be awarded to the

31  bidder whose bid produces the lowest net interest cost to the


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  1  Utility Board. The net cost of bonds shall be determined by

  2  taking the aggregate amount of interest at the rate or rates

  3  specified in the bonds, computed from the date of the bonds to

  4  the date of the various stated maturities thereof, and

  5  deducting therefrom the amount of any premium offered in

  6  excess of the par value of the bonds or adding thereto the

  7  amount of any discount offered below the par value of the

  8  bonds, with interest computed on a three hundred sixty (360)

  9  day year basis. The Utility Board shall reserve the right to

10  reject any or all bids.

11         Said Utility Board shall have the exclusive right and

12  power to buy, purchase, contract for exchange, lease and

13  convey by deed or such other lawful means as permitted by the

14  laws of Florida, whether special, local or general, without

15  the consent or approval of the City Commission or other

16  governing body of the City of Key West, Florida, or its

17  municipal successor, from time to time, any of the property,

18  real, personal or mixed, specified or referred to hereinbefore

19  in this act, for such price or prices and on such terms,

20  provisions and under such conditions as herein set forth at

21  the time or times it determines that such property, real,

22  personal or mixed, is excess to the needs of the electric

23  public utility, or such other public utilities the Utility

24  Board acquires. Said board shall have the full and complete

25  power and exclusive authority to accept gifts, contributions,

26  contributions in aid of construction, properties, whether

27  real, personal or mixed, from the United States Government or

28  any of its departments, bureaus, commissions or agencies, and

29  the said full and complete power and exclusive authority

30  hereinbefore provided shall also apply to the acceptance of

31  gifts, contributions, contributions in aid from the State of


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  1  Florida, or any of its political subdivisions, departments,

  2  bureaus, commissions, or agencies, corporations, publicly or

  3  privately owned or operated, private persons and individuals.

  4  The Utility Board created by this act shall have the full and

  5  complete power and exclusive authority to contract with the

  6  United States Government, or any of its departments, bureaus,

  7  commissions or agencies, other public utilities, the State of

  8  Florida, or any of its political subdivisions, departments,

  9  bureaus, commissions or agencies, corporations, either

10  publicly or privately owned and operated, private persons or

11  individuals, for the acquisition, purchase and operation of

12  other public utilities and said Utility Board may determine in

13  its judgment, and to purchase, contract for the sale, lease or

14  exchange of any products and services, materials and

15  commodities, by-products and water, steam or heat from all or

16  any of its activities or operations. The said Utility Board

17  shall have full and complete power and exclusive authority to

18  fix rates and charges for electricity and charges or prices

19  for any other real and personal property, products and

20  services, materials and commodities, by-products of and from

21  all or any of its activities or operations, furnished or sold

22  by said Utility Board, and to provide for the collection of

23  same. The Utility Board shall grant a special lower rate and

24  charge for electricity on the residential account of any

25  person who meets low income standards adopted by the Utility

26  Board, who has been a permanent resident of the geographical

27  service area covered by the Utility Board in furnishing

28  electricity in Monroe County, Florida, for three (3)

29  consecutive years prior to requesting such special lower rate

30  or charge and who is sixty (60) years of age or older or a

31  totally and permanently disabled American veteran. As used in


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  1  this section "residential account" means an account for a

  2  person residing in a house, mobile home, condominium,

  3  apartment, or other housing unit. Submission of an affidavit

  4  that the applicant claiming the special lower rate and charge

  5  under this section has been a permanent resident of the

  6  geographical service area heretofore mentioned for three (3)

  7  years immediately preceding the date of application, and who

  8  is sixty (60) years of age or older or a totally and

  9  permanently disabled American veteran, shall be prima facie

10  proof of such residence, disability, and age. The affidavit

11  shall include the annual income of the applicant. All bills

12  for electricity and electric service and for the furnishing

13  and sale of the products and services, materials and

14  commodities, by-products and water, steam or heat and

15  by-products of and from all or any activities or operations,

16  shall be collected and accounted for by said Utility Board,

17  and all disbursements in connection with the foregoing, shall

18  be ordered paid out only upon approval of said board; or

19  pursuant to policies adopted by said board or pursuant to

20  policies established by resolution adopted by the Utility

21  Board; and said board acting by, for, and in the name of the

22  City of Key West, Florida, a municipal corporation, and any

23  municipal successor thereto, existing under the laws of

24  Florida, shall have the vested rights which are herein

25  conferred of eminent domain, for the purpose of acquiring

26  lands and rights-of-way necessary and expedient for the

27  location, establishment, construction, maintenance and

28  operation of the works and projects authorized in this act,

29  and for the acquisition and construction of any and all kinds

30  and classes of real, personal or mixed property, tangible or

31  intangible, whatsoever, which shall be deemed necessary,


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  1  convenient or appropriate to accomplish the purposes and

  2  objects authorized by this act, provided, however, said

  3  Utility Board shall at all times be governed by and conform to

  4  the provisions of any proceedings authorizing and providing

  5  for the issuance of bonds, or other obligations of said city,

  6  which by their terms are secured by or payable from the

  7  revenues of the electric public utility, or the revenues of

  8  any of the additional public utilities acquired by said

  9  Utility Board.

10         The Utility Board is hereby authorized to purchase

11  advertising from recognized, established advertising media,

12  such as newspapers, radio and television, as a proper

13  expenditure of the system.  The Utility Board shall not make

14  contributions and donations and charge such contributions and

15  donations to advertising the utility system.

16         Section 2.  Section 13 of chapter 69-1191, Laws of

17  Florida, as amended by chapters 84-457 and 95-509, Laws of

18  Florida, is amended to read:

19         Section 13.  All construction, reconstruction, repairs

20  or work of any nature made by the Utility Board, where the

21  entire cost, value, or amount of such construction,

22  reconstruction, repairs or work, including the labor and

23  materials, shall exceed the amount as established by

24  resolution adopted by the Utility Board fifteen thousand

25  dollars ($15,000.00), except construction, reconstruction,

26  repairs, or work done by employees of the Utility Board or by

27  labor supplied under agreement with federal government or

28  state government, with supplies and materials purchased

29  hereinafter provided, shall be done only under contract or

30  contracts to be entered into by the Utility Board with the

31  lowest responsible bidder upon proper terms, after due public


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  1  notice has been given asking for competitive bids as

  2  hereinafter provided. No contract shall be entered into for

  3  construction or improvement or repair of the electric system,

  4  or any part thereof, unless the contractor shall have given an

  5  undertaking with a sufficient surety or sureties, approved by

  6  the Utility Board, and in an amount fixed by said board, for

  7  the faithful performance of the contract. All such contracts

  8  shall provide among other things that the person or

  9  corporation entering into such contract with the Utility Board

10  will pay for all materials furnished and services rendered for

11  the performance of the contract, and that any person or

12  corporation furnishing such materials or rendering such

13  services may maintain an action to recover for the same

14  against the obliger in the undertaking, as though such person

15  or corporation were named therein, provided the action is

16  brought within one (1) year after the time the cause of action

17  accrues. Nothing in this section shall be construed to limit

18  the power of authority to construct, repair or improve the

19  electric system, or any part thereof, or any addition,

20  betterment or extension thereto, directly by the officers,

21  agents and employees of the Utility Board, or otherwise than

22  by contract.

23         All supplies, equipment, machinery and materials

24  costing more than the amount as established by resolution

25  adopted by the Utility Board ten thousand dollars ($10,000.00)

26  or more shall be purchased only after advertisement as

27  provided hereinafter.  The Utility Board shall accept the

28  lowest bid or bids, kind, quality and material being equal,

29  but said board shall have the right to reject any or all bids

30  or select a single item from any bid. The provision as to

31  bidding shall not apply to the purchase of patented and


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  1  manufactured products offered for sale in a noncompetitive

  2  market or solely by a manufacturer's authorized dealer.

  3         The term "advertisement" or "due public notice"

  4  wherever used in this section shall mean a notice published at

  5  least once a week for two (2) consecutive weeks before the

  6  award of any contract, in a daily newspaper published and

  7  having a general circulation in the City of Key West, Florida,

  8  and in such other newspapers or publications as the Utility

  9  Board shall deem advisable.

10         No member of the Utility Board or officer or employee

11  thereof shall either directly or indirectly be a party to, or

12  be in any manner interested in, any contract or agreement with

13  the Utility Board for any matter, cause or thing whatsoever in

14  which such member shall have a financial interest or by reason

15  whereof any liability or indebtedness shall in any way be

16  created against such board. If any contract or agreement shall

17  be made in violation of the provisions of this action, the

18  same shall be null and void, and no action shall be maintained

19  thereon against the Utility Board.

20         Subject to the aforesaid provisions, the Utility Board

21  may (but without intending by this provision to limit any

22  powers of said board) enter into and carry out such contract,

23  or establish or comply with such rules and regulations

24  concerning labor and materials and other related matters in

25  connection with any construction project, or portion thereof,

26  as the Utility Board may deem desirable; provided that the

27  provisions of this section shall not apply to any contract or

28  agreement between the Utility Board and any engineers,

29  architects, attorneys, or for other professional services, or

30  to any contract or agreement relating to fiscal advisors,

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  1  fiscal agents, or investment bankers, relating to the

  2  financing of projects herein authorized.

  3         Nothing in this section shall apply to the purchase of

  4  fuel products or produced power on a single-lot basis when

  5  such fuel or power is offered for sale to the Utility Board at

  6  a below advertised price basis.

  7         All purchases of commodities or contractual services

  8  under the provisions of local, state, and federal purchasing

  9  contracts shall be exempt from the competitive procurement

10  requirements, provided that the following criteria are all

11  satisfied:

12         (1)  The terms and conditions of the original contract

13  by the federal, state or local government are satisfactory to

14  the Utility Board and such terms and conditions are expressly

15  extended to other municipalities pursuant to the bid

16  documents.

17         (2)  The original contract by the federal, state or

18  local government was executed within twelve (12) months prior

19  to the proposed purchase of commodities or services by the

20  Utility Board.

21         (3)  The purchasing agent has performed an informal

22  solicitation to determine if the prices of the original

23  contract are fair and reasonable, and to assure local vendors

24  have an opportunity to compete.

25         (4)  The Utility Board authorizes such procurement when

26  the cost of the commodities (materials) or contractual

27  services (labor and materials) exceeds the amounts as

28  established by resolution adopted by the Utility Board ten

29  thousand dollars ($10,000.00) and fifteen thousand

30  ($15,000.00), respectively.

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  1         Section 3.  This act shall take effect upon becoming a

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