Title: December 6 Water Supply Funding Committee Meeting
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Permanent Link: http://ufdc.ufl.edu/WL00004835/00001
 Material Information
Title: December 6 Water Supply Funding Committee Meeting
Physical Description: Book
Language: English
 Subjects
Spatial Coverage: North America -- United States of America -- Florida
 Notes
Abstract: Jake Varn Collection - December 6 Water Supply Funding Committee Meeting (JDV Box 39)
General Note: Box 29, Folder 4 ( Water Supply Issues Group (File 2 of 3) - 1996 ), Item 35
Funding: Digitized by the Legal Technology Institute in the Levin College of Law at the University of Florida.
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Bibliographic ID: WL00004835
Volume ID: VID00001
Source Institution: Levin College of Law, University of Florida
Holding Location: Levin College of Law, University of Florida
Rights Management: All rights reserved by the source institution and holding location.

Full Text
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FHBA

Governmental

Affairs Department


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Director of Regulatory Affairs






Phoe: 904-224-4316
Fix phone: 904-224-7933


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FROM FHBA 2247933


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A 12-17-96 g9:52AM TO CARLTON FIELD WARD 2228398
Lotus Fax Sen er Cover Page


Keith Hetrick


Subject:
Date:
Pages:

From:
Company:
Address:


December 6 Water Supply Funding Conunittee Meeting
12/09/96 03:43 PM
9 including cover page

Judy C Dove


Phone:
Fax:


Message: St~~ Auacheuf


To:


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Message:


See Attached





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*10*4


EXECUTIVE OFFICE OF THE GOVERNOR
The Capitol
Tallahassee, Florida 32399-0001
904/488-5551

MEMORANDUM

T(): Water Supply IFutding (cv Cot"timittee memlms

l'ROM: Paula I Allen

S.ILIF( KC: December 6. 1996. Water Supply Fukding committee meeting

DA''TK: Ikecemlwr 9, 1996



Attached for your information are the notes irom the December 6 meeting of the
Water Supply Funding Committee. lThsc include the assignments made for the
December 18 meeting which are due December 12. You will be receiving an
agenda for the next meeting this 'riday, December 13. Hanks and have a g .oo
week!


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December 6, 1996: Water Supply Funding Committee notes

I. Funding Supply Core Committee Charge and Work Plan Tasks

The Committee discussed the charge for the committee and reached
consensus on the following statement:

"lhe Commitce will develop recommendations to ensure sufficient finding
to construct, operate and maintain the waler supply infastructure and
water resources needed to meet the growinging demand for watr in a safe
alTordable and environmentally acceptable manner."

A. Process, Froduct & Audience

1. The Funding Committie develops initial recommendations for
consideration by full Work Group

2. Ihe Work Group reviews and seeks consensus and asks committee to
refine before final consensus

3. Work Group will forward consensus recommendations and a report on the
deliberations to the G governor.

B. Work Plan Tasks

1. TdentifA overall range of future funding needs

Identity existing sources
Discuss both water supply and water resource needs separately

2. Options and combinations of funding sources
both revenue and loan sources

3. Factors in determining equitable cost distribution

4. Roles and responsibilities in water supply and water resource
funding.

5 Options for administration and distribution of new sources of
funding.


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6. Constramts and impednnents to water supply funding.


TT. Investor Owned I tillties & Public Service Conom visions PTreentation.l
and Discussions

A. Investor Owned I tihlties

Steve Walker and members of the investor owned utilities industry made
presentations. Of primary concern was the "used and useful provision" employed
by the Public Service Commissio in determining rates, which appears to fly in the
face of long range planning efcbrts.

Following the presentations a discussion highlighted the following points:

Ihe possible solutions to the problems identified by the lOUJs are presented sholr
hand and could be the subject of recommendations later fleshed out.

How far do you take water resource policies into the IOU finding/ regulatory
context? Would PSC take into account permit conditions? Yes. Is (hat enough?
Maybe.

Why provide access to public loan funds? Communities take revenue from Water
Utilities and apply to other public services Benefits of the low cost loans would
be passed through to rate payers

10% by central sewer regulated by PSC. 3/4 of Counties are PSC regulated.

Ts it a problem when local government regulates TOT s ? Taw states that, county
must regulate as if it is the PSC. Possible conflict. Committee could address both
PSC and county regulated 10T ls

Water conservation issue. Problem is rate is linked to the amount of water sold
Should make TO1 Js whole if they are successful in water conservation.

SEnvironmental requirements regarding quantity and reuse What about those
surrounding quality? Cost recovery tor environmental quality measures But big
problem is 18 month horizon. Make it consistent with regulatory/ DEP

Access to public sources- IOUs seek reasonablec" return. L.g. talking aboul




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access to state revolving loan tind.

* What about partnering between public utilities and 101 s?

* Committee should only consider changes to constraints that are related to water
supply funding-- keep this narrow focus and apply equally to public and private.

1. PSC Presentation and Discussion

John Williams offered a overview presentation on the PSC role in regulating water
supply of IOUs. Following the presentation the discussion highlighted the
following points.

* 18 month projection $$ apply back to existing users. BUyond 18 months- find
bonds, impact fees etc. to pay. PSC re-evaluating policy at December ride
workshop.

* PSC may be putting regulated in a fight with environmental regulators and
interests by treatment of environment under "used and useful" standard.Changing
the I8 month time standard may fix some of the problem

* PSC & DCA- little interaction except on seating utility franchise areas. However
both are dealing with growth driven concerns.

" 18 month rule only applies to TOI Js not counties

* IUsed/useful. Ts is gauged 100% today? Allow recovery of costs on average peak
days plus the 18 months. What about facilities that rotate demand on wells due to
environmental requirements?

* Marginal rates structure is not addressed specifically in statute PSC has never
used this in water supply and it is questionable it could

* PSC should clani' if there are any legislative changes or statutoy' constraints that
need to be addressed in addition to their own rule changes to address the issue

* Are block rates for conservation allowed? Yes. if demonstrated there is an
excessive per capital consumption

* Understanding rates etc. may become important if it is decided that general


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revenue funds are not a funding source for water supply

ITT. Work Plan Tasks

A. Discussion of Range of Future Funding Needs

The Water Management Districts presented some figures for water resource costs
looking backward at items they have been involved in. Ihe figures didn't
incorporate water supply utilities, regulatory costs etc. As an example, SJRWMD
estimated over the next 20 years about $1 billion in needs in terms of traditional
sources and three times that ifaltleative sources were considered.

Members discussed whether it was possible or appropriate for the Committee to
come to agreement on some number or range. All agreed the number would be
considerable (in the billions) once all costs were considered. however it would
require a thorough dchbat of assumptions. Some members suggested that the
Committee's focus should include both new and existing alternative sources of
water costs.

Ihe members agreed not to spend more time at the point engaging in this debate.
'Ihe Water Management Districts agreed to recalculate figures to more accurately
reflect water supply funding costs.

B. Discussion of the Water Supply Funding Options and Combinations.

The members agreed to initially identity existing water supply funding sources and
related water resource funding sources. Included in this would be revenue and loan
sources and traditional and alternative

Member assignments were made to set forth the nature of the source (revenue or
loan), the statutory source, the constraints and limitations on its use for water
supply funding. At a minimum, submittals should address the components
included in the DEP matrix spreadsheet that was handed out Those components
are- (1) Option and type of finding: (2) Administered by whom); (3) Intended
recipients of funding; (3) Amounts available/projected; (4) Js.es; (5) Guiding
principles fir fund (intended purpose): (6) Tmpediments/constraints on funding; (7)
Requirements; (8) Actions needed to implement/access; (9) Advantages/
disadvantages (subjective comments and policy implications)

Assignments were made for all members to identify any future new\ sources w ith a




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rationale tir how and why it should be used.

1. Federal sources (DEP with assist from Local Govt)

a. Safe Drinking Water Act Funds
1. Federal $$ 44.2 to be matched by State $9
million
2. Complicated limitations and qualifications (e.g. not used for grow th
but. to enhance alter quality.
3. Any new funds added to the mix will help

b. USDA Rural Utilities Services
1. Annual appropriation- funneled through slate
clearinghouse includes both grants and loans,

c. IIUD/ DCA
2. CDUGs- very compeitivc

d Federal Desal bill finds

c. Farm Bill Funds 2(X) million + to find Everglades
restoration projects.

f. EPA. Watershed program money Alternative source #$$ (e.g
SWFWMD got line items from Federal Clean Water Act)

2. State Sources (WMDs will work with Sierra etc)

a Save our Rivers $

b. P 2000 hrnd ifnds

c State Resource lands, Chap 16 School Board Lands- may
represent a savings for lands available at reduced costs

d Pollution recovery finds

e. 373 495 authorizes but never used

(other potential new\ sources mentioned include: removing exemption from




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gross receipts sales tax)

3. Regional Sources

a. WMTs sources- Ad valorem; permit fees
(WMDs will identify: Bill Segal)

b. Wuter Supply Authorities sources : Advalorem, Bondss user fees/sales
(Somny will ask WCRWSA to sel forth)

c. 298 Districts Legis. authorized to raise $ for
(Steve Walker set forth)

d. RPCs/Federal economic development funds (Casey Gluckman
w ill look inlo)

4. Local Sources

ui. Special aussssmcnts
b. Impact fees
c, Ad valorem
d. Local P2000 match xbnded
e. Local option sales lax
f sales tax on water exemption (not auth now)
g. Sales tax on water exemptionss-
h. "franchise tees"
i. Chap 153(9?'7??) County special districts
(Local govt Whitson)

5. Private sources (Steve Walker to provide information)

a. private investments
b. rates
c CIAC (developer contributions)

6. Joint ventures (public/ private) (Steve Walker/wMDs)
a partnerships
b privatizations
c. combinations of previously identified public/private sources


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(League of Cities article- Whitson)
(grant programs, loan programs, water user tees. rate structure fees)

Request for new funding source ideas (to get a head star on our next meeting)' All
members and interested parties assigned.

All due by December 12, 1996 to Paula Allen at (Governor's office) PHONE (904)
488-5551, FAX (904) 922-6200, or E-mail (in body of message) o incrnetc
address: p.al .ull.len(lai spbs. state. us

E-mail preferred, impossible.




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