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DATE: |
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TO: |
Office of Commission Clerk (Stauffer) |
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FROM: |
Division of Engineering (M. Watts) Division of Accounting and Finance (Cicchetti) Division of Economics (Roberts) Office of the General Counsel (Klancke) |
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RE: |
Docket No. 130229-WS – Application for amendment of territory for Certificate Nos. 622-W and 564-S in Volusia and Brevard Counties by Farmton Water Resources LLC. |
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AGENDA: |
04/10/14 – Regular Agenda – Interested Persons May Participate |
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COMMISSIONERS ASSIGNED: |
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PREHEARING OFFICER: |
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SPECIAL INSTRUCTIONS: |
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On August 26, 2013, Farmton Water Resources LLC (Farmton or Utility) filed a notice to amend Certificate Nos. 622-W and 564-S to extend and delete service territory in Volusia and Brevard Counties. Farmton is a Class C water and wastewater utility in Volusia and Brevard Counties serving three water customers and no wastewater customers. The Utility is located in the St. Johns River Water Management District, which has permanent water restriction rules in place. According to the Utility’s 2012 Annual Report, combined operating revenues were $1,433 with a total net operating loss of $34,711. The Utility plans to extend and delete its certificated water and wastewater service areas as described in Attachment A.
On January 2, 2014, Ms. Lesley Blackner, representing the Volusia Flagler Sierra Club, contacted legal staff regarding the instant docket. She was subsequently made an interested party in the docket and kept apprised of the pendency of the docket.
Farmton was granted Certificate No. 622-W in 2004[1]
and 564-S in 2012.[2]
The Commission has jurisdiction pursuant to Sections 367.045 and 367.071, Florida
Statutes (F.S.).
Discussion of Issues
Issue 1:
Should the Commission approve Farmton’s application for amendment of Certificate Nos. 622-W and 564-S in Volusia and Brevard Counties?
Recommendation:
Yes. It is in the public interest to amend Certificate Nos. 622-W and 564-S to reflect the territory as described in Attachment A, effective the date of the Commission’s vote. The resultant order should serve as Farmton’s amended certificates and should be retained by the Utility. The Utility should charge the customers in the territory added herein the rates and charges contained in its current tariffs until a change is authorized by the Commission in a subsequent proceeding. (M. Watts, Klancke)
Staff Analysis:
The Utility’s application to amend its authorized service territory was submitted in accordance to Rule 25-30.036, Florida Administrative Code (F.A.C.). The application contains proof of compliance with the noticing provisions set forth in Rule 25-30.030, F.A.C. No timely objections to the application have been received and the time for filing such expired on September 30, 2013.
The proposed service territory amendment is intended to amend the wastewater certificate to include the territory within Volusia County currently included in its water service territory and to extend both the water and wastewater territories so that they cover all of the properties now owned by the related party landowners. The proposed amendment also serves to delete a parcel from the existing water service territory to recognize the existing water and wastewater service area of the City of Edgewater, and to delete several parcels within the existing wastewater service territory that are no longer owned by the related party landowners. Upon completion of all proposed amendments, the territory covered by Farmton’s water and wastewater certificates will be identical.
Farmton’s current water service customers include tree farming operations and hunting camp activities. These include one residential connection, two general service connections, and one fire connection. The Utility’s plans for future phases adhere to the comprehensive plan development entitlements of Volusia and Brevard Counties. These plans allow for the development of 18,408 residential units and 3,879,783 square feet of commercial space in Volusia County, and 2,306 residential units and 1,250,000 square feet of commercial space in Brevard County. The application contains warranty deeds as evidence that the Utility owns the land upon which the Utility’s water and wastewater treatment facilities are located. Adequate service territory maps and territory descriptions have also been provided. The Utility’s application included a statement indicating that through the funding and financial support of its managing member, Farmton Management LLC, it will have the financial backing to provide the financial and operating support necessary for the Utility to be successful.
The Utility’s current facilities consist of three 4-inch wells with hand-operated pumps. One of these wells is in the area proposed for deletion. As required by Rule 25-30.036(4)(h), F.A.C., the Utility provided statements regarding effect on customers’ ability to get water and wastewater service in the area proposed for deletion. Farmton stated a portion of its existing water service territory in Volusia County has been designated for inclusion in the City of Edgewater’s water service territory; therefore, any potential customers in that territory would seek service from the City of Edgewater. Also, the Utility has one customer, the Miami Tract Hunt Club, that utilizes a well in the area proposed for deletion in support of hunting operations. Unlike residential or commercial operations, which have geographically fixed water demands, the hunting operations are conducted throughout the Farmton property and do not have a specific water demand location. The Utility has two other wells of similar design on its property that will remain available to support the hunting operations.
Based on the foregoing, staff recommends it is in the public interest to amend Certificate Nos. 622-W and 564-S to reflect the territory as described in Attachment A, effective the date of the Commission’s vote. The resultant order should serve as Farmton’s amended certificates and should be retained by the Utility. The Utility should charge the customers in the territory added herein the rates and charges contained in its current tariff until a change is authorized by the Commission in a subsequent proceeding.
Issue 2:
Should this docket be closed?
Recommendation:
Yes. If staff’s recommendation in Issue 1 is approved, no further action is required and the docket should be closed. (Klancke)
Staff Analysis:
If Issue 1 is approved, no further action is required and the docket should be closed.
FLORIDA PUBLIC SERVICE COMMISSION
authorizes
Farmton Water Resources LLC
pursuant to
Certificate Number 622-W
to provide water service in Volusia and Brevard Counties in accordance with the provisions of Chapter 367, Florida Statutes, and the Rules, Regulations, and Orders of this Commission in the territory described by the Orders of this Commission. This authorization shall remain in force and effect until superseded, suspended, cancelled or revoked by Order of this Commission.
Order Number Date Issued Docket Number Filing Type
PSC-04-0980-FOF-WU 10/08/2004 021256-WU Original Certificate
* * 130229-WS Amendment
*Order Numbers and dates to be provided at time of issuance.
FLORIDA PUBLIC SERVICE COMMISSION
authorizes
Farmton Water Resources LLC
pursuant to
Certificate Number 564-S
to provide wastewater service in Volusia and Brevard Counties in accordance with the provisions of Chapter 367, Florida Statutes, and the Rules, Regulations, and Orders of this Commission in the territory described by the Orders of this Commission. This authorization shall remain in force and effect until superseded, suspended, cancelled or revoked by Order of this Commission.
Order Number Date Issued Docket Number Filing Type
PSC-12-0204-PAA-SU 04/16/2012 050192-WS Original Certificate
* * 130047-WS Amendment
*Order Numbers and dates to be provided at time of issuance.
[1] See Order No. PSC-04-0980-FOF-WU, issued October 8, 2004, in Docket 021256-WU, In re: Application for certificate to provide water service in Volusia and Brevard Counties by Farmton Water Resources LLC.
[2] See Order No. PSC-12-0204-PAA-SU, issued April 16, 2012, in Docket 110298-SU, In re: Application for certificate to provide wastewater service in Volusia and Brevard Counties by Farmton Water Resources LLC.