House Bill hb0763er

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  1

  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; authorizing the

  6         board to sell tangible personal property

  7         related to its utility services under certain

  8         circumstances; providing for salaries of board

  9         members to be set by resolution; authorizing

10         the board to extend beyond the limits of Monroe

11         County any public utilities under its

12         jurisdiction under certain circumstances;

13         providing for issuance of refunding revenue

14         bonds by the board; authorizing the board to

15         issue commercial paper notes and variable rate

16         bonds and enter into interest rate swap

17         transactions; revising notice provisions

18         relating to sale of bonds; providing for sale

19         of bonds at competitive or negotiated sale

20         rather than public sale; revising eligibility

21         requirements for a special utility rate;

22         authorizing the board to make expenditures for

23         advertising the utility system; authorizing the

24         board to expend funds for emergency purchases;

25         changing a time period for delivery of annual

26         audits to the City Commission of the City of

27         Key West; providing an effective date.

28

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

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  1         Section 1.  Sections 1, 8, 11, and 13 of chapter

  2  69-1191, Laws of Florida, as amended, and section 17 of

  3  chapter 69-1191, Laws of Florida, are amended to read:

  4         Section 1.  There is hereby created the Utility Board

  5  of the City of Key West, Florida, to be composed of five (5)

  6  members as particularly hereinafter set forth.  Such Utility

  7  Board created by this act shall be and is hereby made the

  8  successor to the Utility Board of the City of Key West,

  9  Florida, heretofore created and existing by and under the

10  provisions of chapter 65-1770, Laws of Florida, and acts

11  amendatory thereto.  The full, complete and exclusive power

12  and right to manage, operate, maintain, control, extend,

13  extend beyond the limits of the City of Key West, Florida, in

14  Monroe County, Florida, improve, finance and re-finance the

15  electric public utility now owned by the City of Key West,

16  Florida, and the nonexclusive right to build, construct,

17  operate, and acquire other public utilities, by purchase,

18  gift, grant, lease, rental or otherwise, from time to time,

19  from the United States Government, its departments, agencies,

20  bureaus and commissions, and from the State of Florida and any

21  of its political subdivisions, and corporations which are

22  publicly or privately owned or operated, and by the right of

23  eminent domain, shall be carried on by such Utility Board

24  composed of five (5) members, all of whom shall be elected by

25  the qualified electors of the City of Key West, Florida, at

26  large, as hereinafter set forth. Furthermore, said Utility

27  Board shall have the power and right to sell at retail or

28  wholesale certain tangible personal property related to its

29  utility services, including, but not limited to, generators,

30  protection and conservation equipment, and appliances. The

31  term "public utility," as used herein, shall include, but not


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  1  be limited to, cable and telecommunication facilities. Nothing

  2  herein shall grant the right of eminent domain as to cable or

  3  telecommunication facilities. The name of the Utility Board

  4  shall be "Utility Board of the City of Key West, Florida," and

  5  said board shall function and operate as hereinafter provided.

  6  Said Utility Board shall have the right to sue and be sued,

  7  may adopt and use a seal and change it at pleasure, and may

  8  use in the conduct of its business the trade name of "City

  9  Electric System," the use of which heretofore by its

10  predecessor board is approved, confirmed and validated;

11  further, said Utility Board may change such trade name and

12  from time to time adopt such trade names as it deems expedient

13  and proper in the conduct of its business, operations and

14  activities.

15         Section 8.  The Chairman of the Utility Board shall

16  receive a monthly salary as compensation for his services in

17  an amount set by majority vote of the board, pursuant to

18  resolution not to exceed $700 per month.  The other members of

19  the board shall receive a monthly salary as compensation for

20  their services in an amount set by majority vote of the board,

21  pursuant to resolution not to exceed $600 per month.  All

22  compensations set forth herein shall be payable as an

23  operating expense of the electric public utility.

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

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

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

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

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

29  city, including the maintenance, operation, extension and

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

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


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  1  and all buildings, stations, substations, machinery,

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

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

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

  5  powers in connection with such other public utilities

  6  hereafter constructed or acquired by said board that are

  7  granted by this act to said board with respect to the electric

  8  public utility now owned by said city. The Board shall have

  9  the power and right to extend its utilities services beyond

10  the limits of Monroe County, Florida. As it relates to the

11  extension of services of the electric public utility, the

12  power to extend services beyond the limits of Monroe County,

13  Florida, shall become effective only if the Legislature enacts

14  legislation permitting any person other than the Utility Board

15  to sell electric energy to customers of the Utility Board. The

16  said Utility Board shall have exclusive power and authority to

17  determine what improvements shall be made to all such public

18  utilities. The said Utility Board shall adopt annual budgets

19  and amend the same from time to time, but in so doing shall

20  conform to the requirements, if any, of any existing ordinance

21  or resolution authorizing the issuance of revenue bonds now

22  outstanding or hereafter issued against the income of the said

23  electric public Utility Board. Revenue bonds, as may be issued

24  determined by said the Utility Board of the City of Key West,

25  Florida, for the purpose of refunding outstanding revenue

26  bonds as well as for any other purposes which the Utility

27  Board of said city deems proper in the management, operation,

28  maintenance, control, improvement, extension, betterment,

29  financing and refinancing of the electric public utility owned

30  by the City of Key West, Florida, as well as for purposes of

31  acquisition, purchase, building and construction and operation


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  1  of additional public utilities which are deemed proper by said

  2  Utility Board, and revenue bonds may also be issued against

  3  the income of any additional public utilities so acquired, and

  4  the granting of such authority to the Utility Board of the

  5  City of Key West, Florida, to issue revenue bonds against

  6  income of the electric public utility owned by said city, or

  7  against the income of any additional public utilities

  8  hereafter acquired by said Utility Board, is exclusive to said

  9  board, and the governing body of said city shall not have the

10  right to issue any such bonds or otherwise incur any

11  indebtedness or obligations whereby the income of said

12  electric public utilities owned by the Utility Board of the

13  City of Key West utility, or the income of any additional

14  public utilities, hereafter acquired by said Utility Board,

15  becomes charged for the payment thereof. The maturity dates

16  and rate of interest of any bonds issued hereunder shall be

17  determined and fixed by the Utility Board of the City of Key

18  West, Florida, and said board shall have the exclusive right

19  to sell said bonds at prices to be determined by said board.

20  The Utility Board of the City of Key West, Florida, is

21  authorized and empowered to adopt such resolutions as may be

22  necessary or advisable in connection with the authorization,

23  execution, issuance, sale, and delivery of the revenue bonds

24  authorized hereunder. Prior to the validation and issuance of

25  any bonds authorized hereunder, said board shall obtain the

26  approval of the City Commission of the City of Key West,

27  Florida, by appropriate ordinance. The Utility Board shall

28  further have the power to issue commercial paper notes and

29  variable rate bonds and to enter into interest rate swap

30  transactions as determined from time to time to be in the best

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  1  interests of the ratepayers of the electric public utility of

  2  the City.

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

  4  cause notice to be given by publication in some daily

  5  newspaper published and having a general circulation in the

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

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

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

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

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

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

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

13  schedule of the maturities of the proposed bonds and such

14  other pertinent information as may be prescribed in the

15  resolution authorizing the issuance of such bonds or any

16  resolution subsequent thereto. Bidders may be invited to name

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

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

19  Utility Board shall also give notice in writing of the

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

21  Chairman of the Florida Development Commission, and to at

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

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

24  bids.

25         All Bonds and refunding bonds issued pursuant to this

26  act may shall be sold at competitive or negotiated public

27  sale, provided any negotiated sale shall comply with section

28  218.385, Florida Statutes and shall be awarded to the bidder

29  whose bid produces the lowest net interest cost to the Utility

30  Board. The net cost of bonds shall be determined by taking the

31  aggregate amount of interest at the rate or rates specified in


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  1  the bonds, computed from the date of the bonds to the date of

  2  the various stated maturities thereof, and deducting therefrom

  3  the amount of any premium offered in excess of the par value

  4  of the bonds or adding thereto the amount of any discount

  5  offered below the par value of the bonds, with interest

  6  computed on a three hundred sixty (360) day year basis. The

  7  Utility Board shall reserve the right to reject any or all

  8  bids.

  9         Said Utility Board shall have the exclusive right and

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

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

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

13  the consent or approval of the City Commission or other

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

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

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

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

18  provisions and under such conditions as herein set forth at

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

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

21  public utility, or such other public utilities the Utility

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

23  power and exclusive authority to accept gifts, contributions,

24  contributions in aid of construction, properties, whether

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

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

27  the said full and complete power and exclusive authority

28  hereinbefore provided shall also apply to the acceptance of

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

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

31  bureaus, commissions, or agencies, corporations, publicly or


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  1  privately owned or operated, private persons and individuals.

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

  3  complete power and exclusive authority to contract with the

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

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

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

  7  bureaus, commissions or agencies, corporations, either

  8  publicly or privately owned and operated, private persons or

  9  individuals, for the acquisition, purchase and operation of

10  other public utilities and said Utility Board may determine in

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

12  exchange of any products and services, materials and

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

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

15  shall have full and complete power and exclusive authority to

16  fix rates and charges for electricity and charges or prices

17  for any other real and personal property, products and

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

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

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

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

22  charge for electricity on the residential account of any

23  person who meets low income standards adopted by the Utility

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

25  service area covered by the Utility Board in furnishing

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

27  consecutive years prior to requesting such special lower rate

28  or charge and who is sixty-two (62) sixty (60) years of age or

29  older or a totally and permanently disabled American veteran.

30  As used in this section "residential account" means an account

31  for a person residing in a house, mobile home, condominium,


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

  2  that the applicant claiming the special lower rate and charge

  3  under this section has been a permanent resident of the

  4  geographical service area heretofore mentioned for three (3)

  5  years immediately preceding the date of application, and who

  6  is sixty-two (62) sixty (60) years of age or older or a

  7  totally and permanently disabled American veteran, shall be

  8  prima facie proof of such residence, disability, and age. The

  9  affidavit shall include the annual income of the applicant.

10  All bills for electricity and electric service and for the

11  furnishing and sale of the products and services, materials

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

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

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

15  and all disbursements in connection with the foregoing, shall

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

17  pursuant to policies adopted by said board or pursuant to

18  policies established by resolution adopted by the Utility

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

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

21  municipal successor thereto, existing under the laws of

22  Florida, shall have the vested rights which are herein

23  conferred of eminent domain, for the purpose of acquiring

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

25  location, establishment, construction, maintenance and

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

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

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

29  intangible, whatsoever, which shall be deemed necessary,

30  convenient or appropriate to accomplish the purposes and

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


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

  2  the provisions of any proceedings authorizing and providing

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

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

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

  6  any of the additional public utilities acquired by said

  7  Utility Board.

  8         The Utility Board is hereby authorized to purchase

  9  advertising, including, but not limited to, advertising from

10  recognized, established advertising media, such as newspapers,

11  radio and television, as a proper expenditure of the system.

12  The Utility Board may make expenditures that are reasonable

13  and necessary for advertising the Board's utility system or

14  systems, including advertising events and programs which are

15  sponsored by the Utility Board or in which the Utility Board

16  participates. Furthermore, nothing in this paragraph shall be

17  construed to prevent the Utility Board from sponsoring

18  charitable events or events which would benefit the Utility

19  Board or its utility system or systems.  The Utility Board

20  shall not make contributions and donations and charge such

21  contributions and donations to advertising the utility system.

22         Section 13.  All construction, reconstruction, repairs

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

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

25  reconstruction, repairs or work, including the labor and

26  materials, shall exceed the amount as established by

27  resolution adopted by the Utility Board, except construction,

28  reconstruction, repairs, or work done by employees of the

29  Utility Board or by labor supplied under agreement with

30  federal government or state government, with supplies and

31  materials purchased hereinafter provided, shall be done only


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  1  under contract or contracts to be entered into by the Utility

  2  Board with the lowest responsible bidder upon proper terms,

  3  after due public notice has been given asking for competitive

  4  bids as hereinafter provided. No contract shall be entered

  5  into for construction or improvement or repair of the electric

  6  system, or any part thereof, unless the contractor shall have

  7  given an undertaking with a sufficient surety or sureties,

  8  approved by the Utility Board, and in an amount fixed by said

  9  board, for the faithful performance of the contract. All such

10  contracts shall provide among other things that the person or

11  corporation entering into such contract with the Utility Board

12  will pay for all materials furnished and services rendered for

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

14  corporation furnishing such materials or rendering such

15  services may maintain an action to recover for the same

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

17  or corporation were named therein, provided the action is

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

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

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

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

22  betterment or extension thereto, directly by the officers,

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

24  by contract.

25         All supplies, equipment, machinery and materials

26  costing more than the amount as established by resolution

27  adopted by the Utility Board shall be purchased only after

28  advertisement as provided hereinafter.  The Utility Board

29  shall accept the lowest bid or bids, kind, quality and

30  material being equal, but said board shall have the right to

31  reject any or all bids or select a single item from any bid.


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  1  The provision as to bidding shall not apply to the purchase of

  2  patented and manufactured products offered for sale in a

  3  noncompetitive market or solely by a manufacturer's authorized

  4  dealer.

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

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

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

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

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

10  and in such other newspapers or publications as the Utility

11  Board shall deem advisable.

12         No member of the Utility Board or officer or employee

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

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

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

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

17  whereof any liability or indebtedness shall in any way be

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

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

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

21  thereon against the Utility Board.

22         Subject to the aforesaid provisions, the Utility Board

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

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

25  or establish or comply with such rules and regulations

26  concerning labor and materials and other related matters in

27  connection with any construction project, or portion thereof,

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

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

30  agreement between the Utility Board and any engineers,

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


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  1  to any contract or agreement relating to fiscal advisors,

  2  fiscal agents, or investment bankers, relating to the

  3  financing of projects herein authorized.

  4         Notwithstanding the aforesaid provisions, the Utility

  5  Board may, in its reasonable discretion, authorize and permit

  6  such expenditures of funds as necessary for making emergency

  7  purchases or may delegate such authority to such employees and

  8  officers of the utility system or systems.

  9         Nothing in this section shall apply to the purchase of

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

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

12  a below advertised price basis.

13         All purchases of commodities or contractual services

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

15  contracts shall be exempt from the competitive procurement

16  requirements, provided that the following criteria are all

17  satisfied:

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

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

20  the Utility Board and such terms and conditions are expressly

21  extended to other municipalities pursuant to the bid

22  documents.

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

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

25  to the proposed purchase of commodities or services by the

26  Utility Board.

27         (3)  The purchasing agent has performed an informal

28  solicitation to determine if the prices of the original

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

30  have an opportunity to compete.

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  1         (4)  The Utility Board authorizes such procurement when

  2  the cost of the commodities (materials) or contractual

  3  services (labor and materials) exceeds the amounts as

  4  established by resolution adopted by the Utility Board.

  5         Section 17.  The Utility Board of the City of Key West,

  6  Florida, shall provide for an annual audit and be subject to

  7  audit by the Legislative Auditor of the State of Florida, of

  8  all utility board accounts, and said Board is hereby

  9  authorized to pay the expenses thereof when required to do so

10  and may provide for such more frequent audits as it deems

11  necessary. A copy of the audit is to be delivered to the City

12  Commission of the City of Key West, Florida, within seven (7)

13  working days twenty four(24) hours, holidays included, after

14  the Utility Board receives its copy from the audit agency. The

15  Utility Board shall deliver to any other authorized agency, as

16  they may be required, additional copies of the audit. The

17  expenses of said audit shall be paid by the Utility Board of

18  the City of Key West, Florida.

19         Section 2.  This act shall take effect upon becoming a

20  law.

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