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State of Florida
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Public Service Commission Capital Circle Office Center ● 2540 Shumard
Oak Boulevard -M-E-M-O-R-A-N-D-U-M- |
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DATE: |
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TO: |
Office of Commission Clerk (Teitzman) |
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FROM: |
Division of Engineering (Lewis, Maloy, Ramos) Office of the General Counsel (J. Crawford) |
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RE: |
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AGENDA: |
11/01/22 – 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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Sun River Utilities, Inc. (Sun River or Utility) is a Class C water and wastewater utility located in Charlotte and Desoto counties in the Southern Water Use Caution Area of the Southwest Florida Water Management District. The Utility serves approximately 61 residential water and wastewater customers. The Utility’s 2021 Annual Report indicates that the Utility had total gross revenues of $29,768 and a net operating loss of $22,925.
The Utility has been operating in Charlotte County since 1982 and was granted its water and wastewater certificates (611-W and 527-S) by the Commission in 1999, as Hunter Creek Utilities, LLC (Hunter Creek).[1] The Utility was subsequently transferred from Hunter Creek to MSM Utilities, LLC in 2004 and then transferred to Sun River in 2007.[2]
On September 25, 2007, Charlotte County adopted a resolution rescinding the Commission’s jurisdiction, which the Commission acknowledged in Order No. PSC-07-0984-FOF-WS. However, in 2008 Sun River filed an application for original certificates to provide service in Charlotte and Desoto Counties, pursuant to 367.171(7), Florida Statutes (F.S.), since the Utility’s services now transverse county boundaries.[3] Subsequently, the Commission granted Certificate Nos. 646-W and 554-S to Sun River in 2009.[4] On December 10, 2015, Sun River filed a 60 day notice of its intent to abandon the Utility due to financial hardships associated with Utility operations. On February 5, 2016, Sun River rescinded its notice of abandonment, because the Utility was sold to North Charlotte Waterworks, Inc. (North Charlotte). North Charlotte filed an application for transfer of the Utility’s systems and certificates.[5] However, unlike previous owners, North Charlotte could not obtain adequate ownership or rights to continued use of the land upon which the treatment facilities are located, as required by Section 367.1213, F.S. Therefore, on December 23, 2020, North Charlotte and Sun River filed a joint notice of intent to abandon the water and wastewater systems effective April 30, 2021.[6]
Charlotte County filed a Petition for Appointment of Receiver with the Circuit Court of the Twentieth Judicial Circuit in and for Charlotte County (Circuit Court). The Circuit Court issued an Order in Case No. 21-0148CA, on April 30, 2021, in which it declared the Utility abandoned and appointed Michael Smallridge as receiver of the water and wastewater systems. On August 23, 2021, the Commission acknowledged the joint abandonment of the Utility and the appointment of Michael Smallridge as the Utility’s receiver.[7]
On May 9, 2022, Michael Smallridge filed a notice of intent to abandon the water and wastewater systems effective July 18, 2022, on behalf of Sun River. Like North Charlotte, he was also unable to obtain adequate ownership or rights to the continued use of the land upon which the treatment facilities are located. On July 12, 2022, the Commission received notice from the Circuit Court of the appointment of CSWR - Florida Utility Operating Company, LLC (CSWR) as the receiver for Sun River, effective July 18, 2022.[8] The purpose of this recommendation is to acknowledge the abandonment by Sun River and the appointment of the receiver. The Commission has jurisdiction pursuant to Section 367.165, F.S.