08/01/1994 IDA Bond ApplicationLAW OFFICES
ROSE, SUNDSTROM & BENTLEY
A PARTNERSHIP INCLUDING PROFESSIONAL ASSOCIATIONS
2548 BLAIRSTONE PINES DRIVE
TALLAHASSEE, FLORIDA 32301
(904) 877-6555
ROBERT A. ANTISTA
CHRIS H. BENTLEY, P.A.
F. MARSHALL DETERDING
MARTIN S. FRIEDMAN, P.A.
JOHN R. JENKINS
ROBERT M. C. ROSE, P.A.
WILLIAM E. SUNDSTROM, P.A.
DIANE D. TREMOR, PA.
JOHN L. WHARTON
August 2, 1994
Mr. Danny L. Kolhage
Clerk of Courts
Monroe County, Florida
530 Whitehead Street
Key West, Florida 33040
Re: North Key Largo Utility Corp.
$3,100,000 IDB Application
Our File No. 30026.01
Dear Kolhage:
MAILING ADDRESS
POST OFFICE BOX 1567
TALLAHASSEE. FLORIDA 32302-1567
TELECOPIER (904) 656-4029
Yesterday this firm filed an Application for Industrial
Development Revenue Bond in the amount of $3,100,000 filed on
behalf of North Key Largo Utility Corp. That filing was made with
the County Attorney's Office for distribution to appropriate County
officials. However, since this issue is one that may be of
particular concern to you as Clerk, I am enclosing several copies
for you and your staff. I have also taken the liberty of providing
copies to Judson Freeman and Lavon Wisher in the event the County
will be using their services to review this Application.
The Bond proceeds will be utilized to acquire and make
improvements to a wastewater utility system currently owned by the
Ocean Reef Club, Inc. which is a qualifying "project"'=as`defined in
section 159.27 Florida Statutes. Please let me know if I can
provide any further information on this matter.
i cerely
r
John R. kins
For the ' m
JRJ:jmt
Enclosures
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NORTH KEY LARGO UTILITY CORP.
$3,100,000
INDUSTRIAL DEVELOPMENT
REVENUE BOND APPLICATION
AUGUST 1, 1994
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TABLE OF CONTENTS
Page
1. REQUEST FOR SPONSORSHIP AND APPLICATION SUMMARY
A. Request . . . . . . . . . . . . . . . . . . . . . . . 1
B. Application Summary . . . . . . . . . . . . . . . . . 1
2. APPLICANT'S BACKGROUND
A. Basic Information on Applicant . . . . . . . . . . . . 2
B. History of Utility System . . . . . . . . . . . . . . .3
C. Purpose for North Key Largo Utility Corp. . . . . . . 3
3. PHYSICAL PLANT AND CURRENT OPERATIONS
A. Collection System . . . . . . . . . . . . . . . . . . 5
B. Treatment Plant . . . . . . . . . . . . . . . . . . . 5
C. Effluent Disposal . . . . . . . . . . . . . . . . . . 5
D. Permitting . . . . . . . . . . . . . . . . . . . . . . 6
E. Management . . . . . . . . . . . . . . . . . . . . . . 6
4. PROJECT DESCRIPTION
A. System Acquisition . . . . . . . . . . . . . . . . . . .7
B. Treatment Plant Expansion . . . . . . . . . . . . 7
C. Reserve Funds and Costs of Issuance . . . . . . . . . 8
5. PROPOSED BOND ISSUE STRUCTURE
A. Preliminary "Term Sheet" . . . . . . . . . . . . . . . 9
B. Schedule of Uses of Funds . . . . . . . . . . . . . 10
C. Method of Bond Placement . . . . . . . . . . . . . . . 11
6. HISTORICAL AND PROJECTED FINANCIAL INFORMATION
A. Preliminary Financial Projections . . . . . . . . . 12
B. Historical Financial Statements . . . . . . . . . . 12
C. Previous Financing Experience . . . . . . . . . . . 12
7. PUBLIC PURPOSE AND APPLICANT'S PERFORMANCE
A. Environmental and Health Benefits . . . . . . . . . 13
B. Compliance With Comprehensive Plan Goals . . . . . 13
C. Economic and Employment Benefits . . . . . . . . . . 13
D. Applicant's Performance . . . . . . . . . . . . . . . 14
S. MISCELLANEOUS
A. Project Legal Qualifications . . . . . . . . . . . . 15
B. Inducement Resolution and Allocation Request. . . . 15
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LIST OF EXHIBITS
EXHIBIT
"A"
SERVICE TERRITORY
EXHIBIT
"B"
ARTICLES OF INCORPORATION
EXHIBIT
"C"
FURTHER DESCRIPTION OF DESIGN/BUILD SERVICES
(PLANT EXPANSION)
EXHIBIT
"D"
PRELIMINARY FINANCIAL PROJECTIONS
EXHIBIT
"E"
1993 PSC ANNUAL REPORT
EXHIBIT
"F"
EXPLANATION OF UNAUDITED ANNUAL REPORTS
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APPLICATION FOR INDUSTRIAL DEVELOPMENT
REVENUE BOND
1. REQUEST FOR SPONSORSHIP AND APPLICATION SUMMARY
A. Request
NORTH KEY LARGO UTILITY CORP., 31 Ocean Reef Drive, Key Largo,
Florida, 33037 ("Applicant"), files this Application and respect-
fully requests that Monroe County issue Industrial Development
Revenue Bonds (North Key Largo Utility Corp. Project), Series 1994,
in an amount not to exceed $3,100,000 ("Bonds") for the purpose of
financing the acquisition and improvement of a wastewater collec-
tion, transmission, treatment and disposal system serving North Key
Largo, Monroe County, Florida.
B. Application Summary
Issuer: Monroe County, Florida (Industrial Development Authority)
Obligor: North Key Largo Utility Corp.
Issue Size: $3,100,000
Interest Rate: To be determined
Maturity: November 1, 2024
Method of Sale: Private Placement
Denomination: Minimum $100,000
Placement Agent: To be determined
Bond Counsel: Squire, Sanders & Dempsey
Project: The Project consists of: (i) Acquisition of the 450,000
gallons per day ("gpd") central wastewater collection, transmis-
sion, treatment and disposal system owned by Ocean Reef Club, Inc.
located on Key Largo, Florida ("System"); (ii) construction of
300,000 gpd of new plant capacity to replace certain existing
facilities and accommodate reasonably anticipated future growth;
and, (iii) payment for qualifying costs of issuance ("Project").
Legal Eligibility: The Project qualifies as a "Pollution Control
Facility" under Chapter 159 Florida and is further defined as a
"priority project" for purposes of allocation of state bond volume
-- limitation.
Allocation: The Applicant will apply to the State of Florida for
allocation of State bond volume limitation immediately following the
mandatory "TEFRA" public hearing. Closing will occur following
allocation by the Florida Division of Bond Finance from any funds
still remaining in the 1994 pool or from the 1995 pool.
Security: (i) first mortgage on all existing real estate, buildings
and personal property of the Applicant, (ii) security pledge and
assignment of revenue, (iii) pledge and assignment of all money and
securities in Trustee accounts, and (iv) "rate covenant" to maintain
rates at a level sufficient to repay the Bonds.
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2. APPLICANT'S BACKGROUND
A. Basic Information on Applicant
M The name, address and contact persons for the Applicant are:
North Key Largo Utility Corp.
31 Ocean Reef Drive, Suite 301-A
Key Largo, Florida 33037
Attention: Paul B. Winklejohn, Utility Director
Telephone: (305) 367-3067
Fax: (305) 367-4246
The Applicant is a Florida, not -for -profit corporation estab-
lished on August 1, 1994. The Applicant is a member -owned coopera-
tive in the business of providing wastewater collection, treatment
and disposal services to its customers who are the members of the
Corporation.
The contact persons for purposes of this Application are the
Applicant's Counsel:
Rose, Sundstrom & Bentley
2548 Blairstone Pines Drive
Tallahassee, Florida 32301
Attention: John R. Jenkins, Esq.
William E. Sundstrom, Esq.
Telephone: (904) 877-6555
Fax: (904) 656-4029
The name and address of the Applicant's Accountant is:
Cronin, Jackson, Nixon & Wilson
2560 Gulf -To -Bay Boulevard, Suite 200
Clearwater, Florida 34625-4419
Attention: Robert C. Nixon, C.P.A.
Telephone: (813) 791-4020
Fax: (813) 797-3602
The name and address of the Applicant's Engineer is:
Hartman & Associates, Inc.
201 East Pine Street, Suite 1000
Orlando, Florida 32801
Attention: Gerald C. Hartman, P.E.
Telephone: (407) 839-3955
Fax: (407) 839-3790
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B. History of Utility System
Central wastewater service was first provided to North Key
Largo in 1971. The Utility was originally developer owned and
operated to serve the Ocean Reef Club, a large, upscale development
on North Key Largo. The original sewer plant was a 100,000 gpd
package plant utilizing contact stabilization as a treatment method
with effluent disposal through a system of shallow injection wells.
In 1980, a second Davco treatment plant with a capacity of 100,000
gpd was installed in series with the first.
In 1974, Monroe County transferred jurisdiction over private-
ly -owned water and sewer utilities to the Florida Public Service
Commission ("PSC"). The Utility was issued Certificate of
Authority No. 363-S by the PSC authorizing it to provide service to
a specific territory, approving rates and charges, and establishing
policies governing the provision of wastewater service to its
customers. In 1985, the plant was expanded for a second time with
the construction of a Marolf 250,000 gpd concrete treatment plant
addition.
On December 30, 1993, the PSC approved a transfer the
Utility's sewer certificate from the Ocean Reef Utility Company to
Ocean Reef Club, Inc. f\k\a Ocean Reef Acquisition Corp. The
territory served by the Utility at the time of transfer is set
forth in Exhibit " All attached. The transfer was part of a larger
March 1, 1993 buy-out of the developer of the Ocean Reef Club by
its residents, which acquisition included a marina, hotel, two golf
courses, airstrip, and other property including the Utility. The
entire property, including the wastewater System, was purchased for
$58,000,000.
C. Purpose for North Key Largo Utility Corp.
The Applicant is a Florida, not -for -profit corporation in
which the Utility customers comprise the membership. A copy of the
Articles of Incorporation are attached as Exhibit "B" to this
Application.
Ocean Reef Club, Inc. ("Club"), the previous owner of the
System is also a not -for -profit corporation. A majority of the
Club members are also utility customers. However, some Club
members are not utility customers. Conversely, some utility
customers are not members of the Club. This diversity in member-
ship ,and interest prevented the Utility customers from enjoying two
substantial benefits which can be realized in a sale of the System
to North Key Largo Utility Corp.:
Securing Exemption from Federal Income Taxes
Internal Revenue Code Section 501(c)(12) generally provides
that a mutual ditch or irrigation company, mutual or cooperative
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telephone company, or like organization can qualify for tax-exempt
status if 85% or more of the income of the company consists of
amounts collected from members for the sole purpose of meeting
losses and expenses of the operations of the company. Applicant,
a cooperative in which all customers, and only customers, are
members, is a "like organization" under Section 501(c)(12).
Each Utility customer, as a member of the Applicant, is
entitled to vote on matters affecting the System, and to partici-
pate in the election of Directors. Service is provided to members
in a nondiscriminatory manner. The Applicant intends to file a
request for a letter ruling from the Internal Revenue Service
confirming its tax-exempt status. By qualifying, the Applicant can
avoid payment of federal income taxes which will help to reduce
rates and charges paid by customers of the Utility.
Securing Exemption from PSC Jurisdiction
A not -for -profit corporation, association, or cooperative
providing service solely to members who own or control it is exempt
from PSC jurisdiction pursuant to Section 367.022(7), Florida
Statutes. This exemption is based on the premise that a utility
controlled by its customers will set rates and charges which are
fair and equitable, and which are sufficient to compensate for
operation, maintenance and capital requirements, without a profit
incentive. The Applicant qualifies for such an exemption.
Self -regulation in the ratemaking process affords Applicant
and its customers the following advantages:
* Eliminates 4.5% regulatory assessment fee (gross receipts tax);
* Avoids extensive PSC reporting requirements and onerous rate case
expense;
* Allows Utility to provide "rate covenant" t
rates are set at level sufficient to repay
* Direct accountability of Board of Directors
o bondholders so that
the Bonds.
to customers.
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3. PHYSICAL PLANT AND CURRENT OPERATIONS
The wastewater System is comprised of a 450,000 gpd wastewater
treatment plant, collection and transmission system, shallow
injection well effluent disposal system and appurtenant facilities.
The Applicant currently provides service to approximately 800 units
in the North Key Largo area, processing over 100, 000, 000 gallons of
wastewater in 1993.
A. Collection System
The Applicant collects wastewater for treatment through its
collection/transmission system consisting of gravity sewers,
manholes, force mains and wastewater lift stations. There are
currently 30 satellite lift stations and 310 concrete manholes.
The existing collection/transmission system is made up of over
64,000 feet of gravity wastewater mains and 32,000 feet of force
mains. The System transports raw wastewater through a series of 4"
to loll gravity and force mains throughout the service area to the
Plant.
B. Treatment Plant
The treatment plant has a design capacity of 450,000 gpd.
Initial screening removes large debris and trash. Waste is then
biologically treated through one of two treatment processes:
- Two 100,000 gpd steel plants manufactured by Davco provide
treatment through a process of extended aeration (one plant is
currently out of service); or
One 250,000 gpd concrete facility manufactured by Marolf
provides treatment through a process of contact stabilization.
Following secondary treatment, wastewater undergoes chlorina-
tion followed by high level disinfection. Reject water storage
facilities are in place, with aerobic mixing tanks for the
stabilization of sludge included as part of the process. Waste
_ sludge is hauled away by private contractors. This treatment
process results in effluent that meets or exceeds all DEP permit
and rule requirements for this System.
The treatment plant site and lift stations to be acquired with
the System. No additional property is expected to be acquired in
the System acquisition or construction of the Project.
C. Effluent Disposal
Effluent, the liquid by-product of the treatment process is
disposed of by injection into a series of 50, class V shallow wells
ranging in depth of approximately 30 feet, located adjacent to the
treatment plant. Each well has been inspected and individually
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permitted by the Florida Department of Environmental Protection
("DEP"). This is the preferred method of effluent disposal on the
Island due to limited space, permeable soil conditions, proximity
to environmentally sensitive waters and other factors.
D. Permitting
DEP is the primary environmental regulatory agency for the
System. The Plant is permitted to operate by the DEP under their
permit No. DO44-207655. This operating permit was issued on April
23, 1992 and expires April 23, 1997. All plant and line construc-
tion is undertaken pursuant to DEP permits, following review of
plans and specifications, and completed with professional engineer-
ing certification. The shallow well effluent disposal system is
operated pursuant to its own permits and approvals. The System
maintains all necessary regulatory permits to operate and is
operating in compliance with those permits.
E. Management
The Applicant is administered by a nine member Board of
Directors elected by the customers or members of the Applicant.
The Officers of the not -for -profit Corporation are as follows:
Member Office
Robert Kilby President
Robert Morgan Vice -President
Howard K Howard Secretary
Tom Davidson Treasurer
In 1993, Paul Winklejohn was hired as the System's Utility
Director, and is responsible for the day-to-day management of the
Applicant including operations, contract negotiations with new
users, customer service and bookkeeping. The Applicant also
employs Mark Malka as its Operations Manager and Chief Operator.
Mr. Malka has 22 years in the water and wastewater business,
holding DEP certifications as a class "C" wastewater system
operator and a class "A" water system operator. The operations
Manager is responsible for the day-to-day operation and maintenance
of all systems.
At this time, the System is managed by the Ocean Reef
Community Association. In the future, the Applicant will hire all
operations and customer service personnel directly and will also
enter into a Management Agreement with the Ocean Reef Community
Association to assist in the continued oversight and management of
the System at least in the initial phases of System ownership and
Project construction.
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4. PROJECT DESCRIPTION
A. system Acquisition
Ocean Reef Club Inc., owns the 450,000 gallons per day ("gpd")
central wastewater collection, transmission, treatment and disposal
System described herein which provides service to the Ocean Reef
Club. Approximately $1,100,000 of Bond proceeds will be paid by
Applicant to acquire the assets of the System from Ocean Reef Club
Inc. The firm of Hartman & Associates, Inc. ("HAI") has been
retained to provide a complete, independent evaluation and
appraisal of the System. The appraisal utilizes methodologies
including replacement cost new (less depreciation), the net income
or cash flow approach, and a comparable sales approach. Based on
these accepted practices of utility valuation, as well as a
detailed inspection of the facilities themselves, a preliminary
purchase price was established at $1,000,000. This amount is
subject to finalizing the appraisal, certain aniticipated changes
based on final negotiations between buyer and seller, and closing
costs and adjustments as agreed to by the parties. On that basis,
$1,100,000 in Bond proceeds have been allocated to the purchase
price.
B. Treatment Plant Expansion
Approximately $1,600,000 of the Bond proceeds will be used to
fund a treatment plant expansion of 300,000 gpd. This additional
plant capacity will be used in part to replace 200,000 gpd of
capacity currently provided by the two Davco plants. These steel
plants, operating for years in a harsh, salt water environment,
will soon reach the end of their useful lives. They will be
replaced with new, more efficient facilities requiring less
maintenance, less operator time and improved residuals stabiliza-
tion capabilities.
Wastewater plant construction is very capital intensive and
usually requires 12 to 24 months lead time in order to design,
permit and construct plant facilities. Plant expansion projects
typically provide capacity necessary for at least a 5 year period.
Expansion at this time in a 300,000 gpd increment will be suffi-
cient to treat existing and projected flows from continued home
building in the Ocean Reef Club beyond the year 2000. A Report
entitled Further Description of Design/Build Services prepared by
HAI and Allens Environmental Equipment detailing the plant
expansion, construction timetable and other relevant information is
attached hereto as Exhibit "C."
Other than the existing plant site acquired with the System,
no additional property acquisitions are necessary for the Project.
Plant construction will take place within the existing site. Any
necessary main extensions will utilize dedicated rights -of -way or
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existing utility easements. No additional effluent disposal will
be necessary in order to treat up to 600,000 gpd resulting from
this plant expansion.
C. Reserve Funds and Costs of Issuance
Subject to final structuring of the issue, the balance of the
proceeds are expected to be used to fund a debt service reserve
fund, and costs of issuance including Bond Counsel fees, placement
agent fees, accounting and legal fees, and miscellaneous project
expenses totalling $400,000 from Bond proceeds.
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S. PROPOSED BOND ISSUE STRUCTURE
A. Preliminary "Term Sheet"
The following Term Sheet outlines preliminary terms and condi-
tions the Applicant and its consultants anticipate in marketing
this issue:
Issuer: Monroe County, Florida (Industrial Development Authority)
Obligor: North Key Largo Utility Corp.
Issue Size: $3,100,000
Dated: November 1, 1994
Maturity: November 1, 2024
Interest Rate: To be determined
Form of Bonds: Fully Registered
Denomination: Minimum $100,000.
Placement Agent: To be determined
Bond Counsel: Squire, Sanders & Dempsey
Use of Proceeds: To finance the Project which consists of: (i)
Acquisition of the 450,000 gallons per day ("gpd") central
wastewater collection, transmission, treatment and disposal system
owned by Ocean Reef Club, Inc. located on Key Largo, Florida
("System"); (ii) construction of 300,000 gpd of additional plant
capacity to replace certain existing facilities and accommodate
reasonably anticipated future growth; and, (iii) payment for
qualifying costs of issuance ("Project").
Sinking Fund and Interest Payment Schedule: Sinking fund payments
-- will be structured to yield level debt service during the term of
the Bonds. The Bonds will be fixed rate current interest paying
terms bonds. Interest payments will be made semi-annually on
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November 1 and April 1 based on a 360-day year of 30-day months.
Tax Exemption: Interest on the Bonds will be excluded from gross
income for federal tax purposes and from Florida personal income
taxes. Interest on the Bonds will be an item of tax preference for
purposes of the Federal alternative minimum tax imposed on individu-
als.
Allocation: The Applicant will close the issue as soon as alloca-
tion is obtained from the Florida Division of Bonds Finance. It is
anticipated that the Club will advance monies necessary to continue
engineering design and begin Project construction which will be
reimbursed from Bond proceeds.
Security: Sources of security for the Bonds may include: (i) a
first mortgage on all real estate, buildings and personal property
of the Applicant (including the proposed capital improvements), (ii)
a security pledge and assignment of rights to accounts receivable
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and all contracts relating to Applicant revenue, (iii) a pledge and
assignment to the trustee of the Issuer's and Applicant's rights to
all money and securities in all trustee accounts, excluding the
rebate refund, and (iv) a negative pledge against additional liens
on the mortgaged project as appropriate.
Debt Service Reserve Fund: If necessary, a Debt Service Reserve
Fund will be funded at closing in an amount equal to the lesser of
(i) 10% of the par amount of the Bonds, or (ii) the maximum annual
debt service due on the Bonds.
Capitalized Interest: Not expected to be necessary as existing
revenues are sufficient to handle projected debt service require-
ments during, as well as following, construction.
Costs of Issuance: Payment of Project costs including legal and
accounting fees, Bond counsel fees, placement agent fees and other
qualifying costs will be paid from proceeds up to the 2% limit
thereon.
Mandatory and Optional Redemption: To be determined.
Additional Debt: Additional long-term indebtedness is expected to
be authorized on a parity basis, provided reasonable tests of debt
service coverage are met. Short-term indebtedness secured by ac-
counts receivable and purchase money financing may also be incurred.
Financial Reporting Covenants: The Applicant will covenant to
furnish: (i) quarterly financial statements within 45 days of the
end of each quarter, (ii) annual financial statements within 120
days of the end of each fiscal year and (iii) such additional
information as the bondholders may reasonably request.
Miscellaneous: No guarantees or credit enhancement are anticipated
at this time. This matter will be determined through negotiation
with the Bond purchasers, and the County will be promptly advised of
any such requirements. The proposed method of sale of the Bonds is
through a private placement to sophisticated investors.
B. Schedule of Uses of Funds
The following is a Preliminary Schedule of Uses of Funds for
the Project:
System Acquisition Cost $ 1,100,000
Treatment Plant Expansion Costs $ 1,600,000
Debt Service Reserve Fund $ 300,000
Bond Issuance Cost (2%) $ 60,000
Miscellaneous $ 40,000
Total
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$ 3,100,000
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All identified Project components are either depreciable assets
which may be capitalized under generally accepted accounting
principles, or costs of issuance, and therefore qualify as a proper
expenditure of bond funds. Funds needed in addition to Bond
proceeds will be paid by the Applicant from cash on hand.
C. Method•of Bond Placement
At this time it is anticipated that the Bonds will be privately
placed with sophisticated investors who are also customers of the
Utility System. In lieu of an investment grade rating, the Bonds
will be sold in denominations of not less than $100,000 (and
integral amounts thereafter) to sophisticated investors (whether
members or nonmembers), who will be required to attest to that fact
by execution of a "big boy" letter prior to purchasing the Bonds.
Due to the unusual circumstance of selling the Bonds to its
members, the Applicant has not selected a placement agent at this
time. To the extent one is necessary, the placement agent will
independently analyze the sources and uses of Bond funds, debt
service calculations, revenue and expense projections, and will
draft an Official Statement, Blue Sky Memoranda and other offering
materials, and structure an issue which will be both acceptable to
the marketplace and to the County as Issuer.
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1 6. HISTORICAL AND PROJECTED FINANCIAL INFORMATION
A. Preliminary Financial Projections
Preliminary Financial Projections and related information
prepared by the Accounting Firm of Cronin, Jackson, Nixon & Wilson,
is attached as Exhibit " D." These Preliminary Financial Projec-
tions were developed in conjunction with the Applicant and Hartman
& Associates, Inc., and estimate performance as a result of new
investment made possible by the Bonds. The Projections are based on
adjustments to historical financial statements and demonstrate that
revenue generated by service to the System's existing customer base
will be sufficient to pay operating expenses and debt service
(including coverage requirements) on a $3,100,000 par amount of
Bonds required to pay System acquisition, plant expansion, debt
service, reserve and issuance costs. The Preliminary Financial
Projections will be updated prior to closing to reflect refinements
in revenue and expense information and final Bond structuring.
B. Historical Financial Statements
® Attached hereto as Exhibit "E" and incorporated herein by
reference, is the Applicant's 1993 Annual Report required by, and
submitted to, the PSC. This Annual Report is provided in lieu of
conventional financial statements based upon the unique accounting
methods used to accurately depict the financial status of a
regulated utility in Florida, as discussed in greater detail in
Exhibit "F" attached. Annual Reports detail the Utility's financial
status and provide additional information pertaining to the
operation of a regulated utility. Prior years Annual Reports are
available upon request. However, future System revenues will depend
more on the customer base during the years relating to debt service
payments than on the prior history of the Utility.
C. Previous Financing Experience
The members of the Applicant are in large part also members of
the Club. As members of the Club, they have shown themselves
capable of handling sophisticated financial transactions, particu-
larly the March 1993 purchase of the Club facilities from the
developer of the Ocean Reef Club. The Club is an integral part of
the Ocean Reef Community providing club amenities, hotel, marina,
airfield, utility and other facilities. Club members contracted to
acquire�.the Club at a purchase price of $58,000,000, utilizing both
debt and equity capital, and have successfully operated the
facilities in conjunction with the Ocean Reef Community Association
since closing.
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7. PUBLIC PURPOSE AND APPLICANT'S PERFORMANCE
A. Environmental and Health Benefits
f The Federal Clean Water Act, the Florida Air and Water Pollu-
tion Control Act, and State and local environmental rules and
ordinances limit pollution to surface water and groundwater in the
State of Florida. Public Law 92-500, provides that it is the policy
of the United States to eliminate as many source points of pollution
as possible. On -site septic tanks and small, inefficient, package-
type sewage treatment plants are such source points of pollution.
The Florida DEP has certified that the construction of central
sanitary sewage collection, treatment, and disposal facilities are
in furtherance of the purpose of abating or controlling water pollu-
tion. The Project qualifies as a sewage treatment facility, or
pollution control facility under Florida law and the Internal
Revenue Code for purposes of the issuance of tax-exempt bonds.
® Section 159.27 and 159.803 Florida Statutes.
B. Compliance With County Regulations and Comprehensive Plan Goals
The problem of providing sufficient infrastructure is one of
the most fundamental issues of growth management in the State of
Florida. The Monroe County Comprehensive Plan sets goals, objec-
tives, and policies to guide anticipated growth, based upon a study
of County needs and resources. To accommodate growth, and overcome
deficiencies in urban services, new growth will be required to pay
its fair share for necessary capital improvements. A priority for
capital investment is wastewater facilities and the provision of
sewage collection and treatment services in environmentally
sensitive areas. North Key Largo Utility Corp. provides such
services, and the Bonds will allow it to continue and extend these
services.
_ C. Economic and Employment Benefits
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Water and wastewater utility projects are capable of producing
tangible economic benefits in the form of new employment, the
preservation of existing employment, and new capital investment in
Monroe County. With utility infrastructure in place, employment
opportunities occur as growth results in construction of residential
and commercial development, facilities for the retirement popula-
tion, and hotel/motel facilities encouraging tourism. A number of
jobs in the areas of construction, engineering, and operation of the
utility system will become available as a direct result of a major
utility expansion project. Increased construction activity in turn
causes a ripple effect which increases employment opportunities in
related support services.
The County significantly reduces Applicant's cost of capital
through issuance of the Bonds. Repayment of the Bonds through
service availability charges and monthly rates demonstrates that
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growth pays its fair share, rather than relying on the limited
resources of government programs funded by tax dollars.
D. Applicant's Performance
Utility performance will be enhanced through renovation and
expansion of the wastewater System. A larger, more efficient system
increases gross revenues, creates jobs both inside and outside the
I s costs and spreads i
Applicant, lower risk i k over a larger customer
base. The benefits of this plant expansion and financing will inure
directly to the customers. Tax-exempt financing typically reduces
the interest rate to approximately 75% of the prime interest rate,
which is seldom available except to a Bank's largest corporate
U11
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11
F]
clients. As interest expense is a major factor in determining rates
paid by utility customers, the reduction in the cost of capital
obtained through tax-exempt financing will flow through to the
benefit of the rate payers.
14
S. MISCELLANEOUS
A. Project Legal Qualifications
The Applicant represents that the Project qualifies for
financing through the use of industrial development revenue bonds as
a "project" as defined in section 159.27 Florida Statutes because it
constitutes a pollution control facility as defined in therein. As
a sewage treatment facility the project is further defined as a
"priority project" under section 159.803 Florida Statutes for
purposes of allocation of state bond volume limitation. The
Applicant represents that the Project will serve the public purposes
of promoting pollution control, and increasing employment and
preserving jobs.
THE APPLICANT ACKNOWLEDGES AND AGREES THAT THE BONDS SHALL NOT
CONSTITUTE A DEBT, LIABILITY OR OBLIGATION OF THE COUNTY AND THE
INTEREST THEREON WILL BE PAYABLE SOLELY FROM THE PLEDGED REVENUES
DERIVED FROM OPERATION OF THE WASTEWATER SYSTEM. NEITHER THE FAITH
AND CREDIT NOR THE TAXING POWER OF MONROE COUNTY IS PLEDGED TO THE
PAYMENT OF PRINCIPAL OR INTEREST ON THE BONDS. THE BONDS WILL NEVER
CONSTITUTE A DEBT OR INDEBTEDNESS OF THE COUNTY NOR WILL THEY
CONSTITUTE OA GIVE RISE TO A CHARGE AGAINST THE GENERAL CREDIT OF
MONROE COUNTY.
B. Inducement Resolution and Allocation Request
The Applicant has incurred substantial legal, accounting and
engineering costs on tasks such as plant expansion design, financial
projections, and document drafting which costs are properly
capitalized as a part of this transaction. The Applicant is
permitted to recover such costs from bond proceeds provided they are
incurred after the date of Inducement, or official action by the
County giving preliminary approval to the issue (Treasury Regula-
tions Section 1.150-2). Applicant requests that the County promptly
make a finding of a public purpose and pass an Inducement Resolution
to allow maximum reimbursement of Project related expenditures from
Bond proceeds as provided by law.
The Applicant is also concerned with its ability to obtain bond
volume allocation from the State of Florida Division of Bond Finance
from the 1994 State bond volume cap. As of July 1, the State pool
had essentially been fully allocated to projects around the state.
Although this project qualifies as a "priority project" under
Chapter 159.803, Florida Statutes, competition exists even among
priority projects.
The Applicant requests that, in addition to Inducement, the
County hold a public ("TEFRA") hearing as soon as possible to hear
public comment on the issue and satisfy the requirements of Section
147(f) of the Internal Revenue Code. This TEFRA Hearing is a
prerequisite to filing a Request For Allocation with the Florida
15
I
Division of Bond Finance. Prompt filing of this Request will allow
the Applicant to obtain the best priority now available for any
allocation which may be returned to the State from other projects
which do not close in 1994.
WHEREFORE, North Key Largo Utility Corp. respectfully requests
the County approve the
issuance
of
Industrial
Development Revenue
Bonds for the Project,
this 1st
day
of August,
1994, by:
0
U
0
u
U11
0
16
ROSE, SUNDSTROM & BENTLEY
Attorneys for Applic t
�D— - r-�-
J N R. JENKIN
FIQ
the Firm
EXHIBIT "A"
TERRITORY SERVED
Township 59 South, Range 40 East
SECTION 12
Al; of said Section 12 lying East of Card Sound.
SECTION 19
All of said Section 13 lying East of S.A. 905.
SECTION 24
That part of the North h of said Section 24 lying East of S.R. 905.
Township 59 South, Rance 41 East
SECT ION 05
The South 2,950 feet of the West 4,000 feet of said Section 05.
SECTION 06
The South 2,700 feet of the East 5,100 •feet of said Section 06
EXCEPT
that island known as Government Lot 5.
SECTION 07
All of said Section 07 lying West of the Atlantic Ocean.
SiCI'ION 08
:+11 of said Section 08 lying North and West of the Atlantic Ocean.
SZ=20N 18
The West 3,000 feet cf the North 500 feet,
AND
the South 1,900 feet of the North 2,400 feet of the West 600 feet of said
Section is.
SECTION 19
That portion of said Section 19 lying West of the Atlantic Ocean
1
ARTICLES OF INCORPORATION
NORTH KEY LARGO UTILITY CORP.
r
?. 3 o
The undersigned acknowledges and files these Articles of
Incorporation in the Office of the Secretary of State of Florida
for the purpose of forming a not -for -profit corporation under and
in accordance with the laws of the State of Florida.
ARTICLE I
NAME
The name of the corporation shall be NORTH KEY LARGO UTILITY
CORP. (the "Corporation").
ARTICLE II
PURPOSES
This Corporation is organized exclusively for charitable
purposes as described in Section 501(c)(12) of the Internal Revenue
Code of 1986, as amended, including but not limited to, the
provision of wastewater utility services through a mutual or
cooperative organization.
ARTICLE III
MEMBERSHIP
1. Active members of the Corporation shall be limited to
persons who obtain wastewater collection, treatment and disposal
services from the Corporation.
2. Each active member shall be entitled to a number of votes
upon each matter submitted to a vote, based on the amount of
wastewater capacity utilized by such member, provided the member is
in good standing as to the wastewater capacity represented by his
votes.
ARTICLE IV
DURATION
The Corporation shall commence its existence on August 1, 1994
and shall exist perpetually until dissolution.
ARTICLE V
REGISTERED AGENT
The registered agent of the Corporation shall be John R.
Jenkins, whose office shall be located at 2548 Blairstone Pines
Drive, Tallahassee, Florida 32301.
ARTICLE VI
PRINCIPAL OFFICE
The principal off ice of the Corporation shall be located at 31
ocean Reef Drive, Key Largo, Florida 33037, but the Corporation may
maintain offices and transact business in other places within or
without of the State of Florida as may from time to time be
designated by the Board; furthermore, the Board may from time to
time relocate the principal office of the Corporation.
ARTICLE VII
DIRECTORS
1. The Board shall consist of the number of directors
determined in accordance with the Bylaws, but not less than three
directors.
2. The directors of the Corporation shall be elected at the
annual meeting of the members in the manner determined by the
Bylaws. Directors may be removed and vacancies on the Board shall
be filled in the manner provided in the Bylaws.
3. The names and addresses of the members of the first
Board, who shall hold office until their successors are elected and
have qualified in accordance herewith, or until removed, are as
follows:
Name Address
Alan Goldstein 31 Ocean Reef Drive, Suite A-301
Key Largo, Florida 33037
Howard K Howard
-John- J- Hrad
Tom Davidson
Lois McClure
31 Ocean Reef Drive, Suite A-301
Key Largo, Florida 33037
31 Ocean Reef Drive, Suite A-301
Key Largo, Florida 33037
31 Ocean Reef Drive, Suite A-301
Key Largo, Florida 33037
31 Ocean Reef Drive, Suite A-301
Key Largo, Florida 33037
N�4
a
Robert Kilby, Chairman
Robert Morgan
Frank Shumway, Jr.
31 Ocean Reef Drive, Suite A-301
Key Largo, Florida 33037
31 Ocean Reef Drive, Suite A-3 01
Key Largo, Florida 33037
31 Ocean Reef Drive, Suite A-301
Key Largo, Florida 33037
William Nesbitt 31 Ocean Reef Drive, Suite A-301
Key Largo, Florida 33037
VIII
AMENDMENTS
The Articles may be amended or repealed, in whole or in part,
by a majority vote at any duly organized meeting of the directors.
IX
DISSOLUTION
In the event of the dissolution or liquidation of the
Corporation, either voluntarily or pursuant to order of a Court of
competent jurisdiction, and after payment of all outstanding
liabilities, each member shall be repaid capital credits without
priority on a pro rata basis to the extent assets are available to
make such payments. To the extent that assets remain following
payment of all outstanding liabilities and capital credits,
distributions shall be made without priority to the members and
former members in the proportion which the patronage of each member
or former member bears to the total patronage of all members on the
date of dissolution. A plan of distribution of excess capital
prior to dissolution shall be set forth in the Corporation's
Bylaws.
X
CHARITABLE RESTRICTIONS AND LIMITATIONS
The Corporation intends to be an organization described in
Section 501-(c)(12) of the Internal Revenue Code of 1986, Title 16
to the United States Code, as amended.
3
XIII
INCORPORATOR
The name and address of the incorporator and subscriber to
these Articles is:
John R. Jenkins
2548 Blairstone Pines Drive
Tallahassee, Florida 32301
IN WITNESS WHEREOF, the incorpor9tor and subscriber has
hereunto set his hand and seal, this day of August, 1994.
;___-
John R. JenQns
STATE of FLORIDA )
COUNTY.OF LEON )
Sworn tpp and subscribed before me this day of
1994, by tiRl/�1t? . e,L k n S who is personally known to a -vr—
( (SEAL) Print Name
Notary Publ'
State of Florida at Large
My Commission Expires:
.,��Q•�,M�ss�on F�
• Ic" 360802 :7'
2
17
CERTIFICATE DESIGNATING PLACE OF BUSINESS OR DOMICILE FOR THE
SERVICE OF PROCESS WITHIN THIS STATE, NAMING AGENT UPON WHOM
r� PROCESS MAY BE SERVED
In pursuance of Chapters 48.091 and 617.0501, Florida
Statutes, the following is submitted, designating the Corporation's
registered office and registered agent, in compliance with those
Acts:
NORTH KEY
LARGO UTILITY CORP.,
a not -for -profit
corporation,
desiring to organize under the laws
of the State of
Florida with
its principal
office, as indicated
in the
Articles of
Incorporation,
at Key Largo, County
of Monroe, State of Florida,
has named John
R. Jenkins located at
2548 Blairstone
Pines Drive,
Tallahassee, County of Leon, State
of Florida, as
its agent to
accept service
of process within this
State.
ACKNOWLEDGMENT:
Having been named to accept service of process for the above -
stated Corporation, at the place designated in this Certificate, I
hereby accept to act in this capacity, and agree to comply with the
provisions of said Act relative to keeping open said office, and I
an familiar with and accept the obligations of my position as
registered agent.
By:
n R. Jenkin
e 'stered Age t
Cncr
wJ
"C'•
COD
--i
5
Further Description
Of
Design/Build Services
For
Ocean Reef Community Association
Wastewater Treatment Plant Expansion
Prepared For.
Ocean Reef Community Association
Prepared By:
Allens Environmental Equipment
And
Hartman & Associates, Inc.
June, 1994
HAI #i94-162.03
FURTHER DESCRIPTION
�.t OF
DESIGN/BUILD SERVICES FOR
OCEAN REEF COMMUNITY ASSOCIATION
WASTEWATER TREATMENT PLANT EXPANSION
TABLE OF CONTENTS
Section Page
No. Title No.
Table of Contents -I-
List of Tables -iii-
List of Figures -iv-
1.0 INTRODUCTION
1.1 Purpose
1-1
1.2 Background
1-1
1.3 General Description and Proposed Project Schedule
1-1
2.0 BASIS OF DESIGN OF TREATMENT FACILITIES
2.1 Quantity of Wastewater
2-1
2.2 Treatment Level
2-1
2.3 Wastewater Characteristics
2-1
2.4 Preliminary Treatment
2.5 Flow Equalization
2-1
2-6
2.6 Aeration Zone
2-6
2.7 Secondary Clarifier
2-7
2.8 Chlorine Contact
2-7
2.9 Effluent Disposal
2-7
2.10 Residuals Management
2-7
2.11 Plant Monitoring and Control
2-10
2.12 Chlorination System
2-10
2.13 Site Features
2-10
2.13.1 Access
2-10
2.13.2 Lighting
2-10
MAR/ch/R 10/toc. rpt
HAI #94-162.03 -i-
FURTHER DESCRIPTION
OF
DESIGN/BUILD SERVICES FOR
OCEAN REEF COMMUNITY ASSOCIATION
WASTEWATER TREATMENT PLANT EXPANSION
TABLE OF CONTENTS (Continued)
Section Page
No. Title No.
2.13.3 Landscaping 2-10
2.13.4 Drainage 2-11
3.0 MATERIAL AND EQUIPMENT
3.1
General
3-1
3.2
General Materials of Construction
3-1
3.3
Electrical System
3-1
3.4
Paint System
3-2
3.5
Pretreatment
3-2
3.6
Flow Equalization and Aeration Tankage
3-2
3.6.1 Blowers
3-2
3.6.2 Air Header and Air Diffusers
3-3
3.6.3 Walkway and Handrail
3-3
3.7
Clarifiers
3-4
3.8
Waste Sludge Holding
3-4
3.9
Lime Stabilization Tank
3-4
APPENDICES
A PROPOSED SITE PLAN
MAR/ch/R10/toc.rpt
HAI #94-162.03 -ii-
FURTHER DESCRIPTION
OF
DESIGN/BUILD SERVICES FOR
OCEAN REEF COMMUNITY ASSOCIATION
WASTEWATER TREATMENT PLANT EXPANSION
LIST OF TABLES
Table
Page
No.
Title
_No.
2-1
Wastewater Design Flows and Peak Factors
2-2
2-2
Design Influent Wastewater Characteristics
2-4
2-3
Design Effluent Wastewater Characteristics
2-5
2-4
Aeration Basin Design Summary Extended Aeration Mode
2-8
2-5
Clarifier Design Summary
2-9
MAR/ch/R10/LOT.Rpt
HAI #94-162.03 -iii-
FURTHER DESCRIPTION
OF
DESIGN/BUILD SERVICES FOR
OCEAN REEF COMMUNITY ASSOCIATION
WASTEWATER TREATMENT PLANT EXPANSION
LIST OF FIGURES
Figure Page
No • Title No.
2-1 Process Flow Schematic 2-3
MAR/ch/R10/lof.rpt
HAI #94-162.03 -iv-
J
1.1 PURPOSE
SECTION 1
INTRODUCTION
The purpose of this document is to set forth information and basis of design criteria for the
i
Ocean Reef Community Association (ORCA) Wastewater Treatment Plant expansion.
1.2 BACKGROUND
Based on information provided by ORCA, the proposed wastewater treatment plant (WWTP)
expansion will serve the needs of the community at build -out. Wastewater flows from this
community have been projected to reach approximately 600,000 gallons per day (gpd). The
flow historically has been seasonal in nature. The wastewater will be pumped from the
collection system to the proposed WWTP flow equalization tank and treated as described in the
following sections. We understand that the treated effluent will be disposed of in ORCA's
existing injection wells on -site.
1.3 GENERAL DESCRIPTION AND PROPOSED PROTECT SCHEDULE
The project will primarily consist of construction of poured -in -place concrete tankage that will
- include the equalization, aeration, clarification, sludge holding and chlorine contact. The
structure will be built in the area that is currently occupied by the existing steel wastewater
treatment units. These units will be removed by the design/builder. A proposed site plan is
provided in Appendix A.
The treatment capacity of the proposed expansion will be 0.300 million gallons per day
(MGD) and it will operate as an independent treatment train except for shared sludge holding
and stabilization facilities with the existing 0.250 MGD unit. Also, the existing blowers are
sufficient for use with the proposed plant and will be utilized.
Due to the wide seasonal variations in flow, it was initially proposed that construction be
initiated in May, 1995, and completed by October, 1995. However, it is not necessary to
MAR/ch/R 10/Sec l . rpt
HAI /l94-162.03 1-1
delay construction, as the existing steel WWTP can be relocated and kept in operation during
construction. Therefore, it is possible, assuming normal permitting process time, to begin
construction in January, 1995, on the new unit. This design/build proposal is based on this
described plan and schedule as presented below:
Activity/Task
Engineering Design
Removal of Steel (Rectangular) VJWTP
Relocation of Tub Steel WWTP
FDEP Permitting
Begin Plant Construction
Concrete Work Completion
Mechanical Installation
Electrical and Yard Piping
Start-up
FDEP Certification
Record Drawings & O&M
MAR/ch/R10/Secl .rpt
HAI #/94-162.03
1-2
Date
July - September, 1994
September, 1994
October, 1994
October - December, 1994
January, 1995
March, 1995
March - April, 1995
May - June, 1995
July 2, 1995
July 15, 1995
July 15, 1995
SECTION 2
BASIS OF DESIGN OF TREATMENT FACILITIES
2.1 QUANTITY OF WASTEWATER
The amount of average daily flow of additional wastewater to be treated by the proposed
WWTP has been estimated at 300,000 gpd. This flow is based on the inclusion of the septic
tank area. A flow equalization basin is proposed and thus, this enables a 1.5 peak factor to be
applied to the process units. This factor will be applied to the various process units as shown
in Table 2-1.
2.2 TREATMENT LEVEL
The design of the proposed WWTP has been based upon the Florida Department of
Environmental Protection's requirements of secondary treatment level. Biochemical oxygen
demand (BOD) and total suspended solids (TSS) effluent limits for this type of application is
defined as the more stringent of either 20 mg/l for either or 90 percent removal of either BOD
of TSS. A process flow diagram is presented as Figure 2-1.
2.3 WASTEWATER CHARACTERISTICS
The now to the proposed WWTP is assumed to consist of primarily residential contributions.
As this is an older facility with historical wastewater quality information, design values were
selected based upon monthly operating reports (MOR's). These influent wastewater
characteristics are depicted in Table 2-2. Table 2-3 depicts the effluent characteristics for the
type of treatment facility proposed for this project.
2.4 PRELIMINARY TREATMENT
Preliminary treatment will be provided by a mechanical cleaned bar rack located on top of the
flow equalization tank. This bar rack will be contained in the headworks influent box. The
bar rack assembly will be designed to accommodate the peak hour wastewater flows from the
transmission system. The bar rack will also be designed such that if the bar rack becomes
completely clogged, the raw wastewater will be able to overflow the screen without
MAR/ch/R10/Sec2.rpt
HAI #94-162. 03 2-1
TABLE 2-1
WASTEWATER DESIGN FLOWS AND PEAK FACTORS
Unit Process
Aeration Basin
Clarifier
Chlorine Contact Tank
Aerobic Sludge Holding and Lime
Stabilization Unit
Note:
1. Design Flow = Peak Factor x 0.30 MGD
Peak Factor
1.0
1.5
1.5
1.0
Design Flow
(MGD)(1)
0.300
0.450
0.450
MAR/ch/R10//2-1 .tab
HAI #94-162.03 2-2
I -
I
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V
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Ir
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FIGURE
2-1
ZOMfOZ91/f0'ZYI-f6
TABLE 2-3
DESIGN EFFLUENT WASTEWATER CHARACTERISTICS
Parameter
Value
Biochemical Oxygen Demand (BOD) 20 mg/1
Total Suspended Solids (TSS) 20 mg/1
Ammonia Nitrogen
20 mg/1
MAR/ch/R10/2-3. tab
HAI ##94-162.03 2-5
TABLE 2-2
DESIGN INFLUENT WASTEWATER CHARACTERISTICS
Parameter
Biochemical Oxygen Demand (BOD)
Total Suspended Solids (TSS)
Ammonia Nitrogen
Value
200 mg/1
200 mg/l
30 mg/1
MAR/ch/R10/2-2.tab
HAI #94-162.03 2-4
overflowing the bar rack enclosure. The approach channel depth will be selected to limit the
o g P
minimum approach velocity to greater than 1.25 feet per second (fps) and the maximum
approach velocity to less than 3.0 fps.
2.5 FLOW EQUALIZATION
Peak flow rate is expressed as the ratio of peak hourly flow to average daily flow. Due to the
relatively small service area and seasonal nature, the ORCA wastewater treatment plant
experiences very high peak hourly ratios. The effect of a peak flow on the system usually has
deleterious effects to treatment level.
Flow equalization provides for the dampening of flow rate variations such that stable unit
process operations can be achieved. The extended aeration process which is proposed is
relatively accommodating to peak flow, although it does have limits.. Therefore, a flow
equalization tank with a nominal volume of 150,000 gallons is proposed.
All flow will enter the aerated equalization tank after screening. A series of non -clog pumps
will then pump the wastewater to the two process trains, thus splitting the flow. An
emergency overflow port will be provided to allow wastewater into the aeration tank in the
event of a power failure.
2.6 AERATION ZONE
The extended aeration activated sludge process was selected for biological treatment of the
wastewater. Aeration will be provided by a diffused air system which will create a spiral roll
pattern in the tanks. The air diffusers will be the coarse bubble type. The system will be
designed to provide 1.5 pounds (lb) of oxygen per pound BOD5 removed and 4.6 lb. of
oxygen per pound Total Kjeldahl Nitrogen (TKN) removed. Although the plant is not
designed to fully nitrify, some partial nitrification will occur and this oxygen demand has been
accounted for. The aeration system will also be designed to provide a minimum mixing level
of 20 SCFM per 1000 cubic feet (cf) of reactor. The tank will be equipped with a return
activated sludge (RAS) system which will utilize an air lift for sludge return from the clarifier
into the reactor basin.
MAR/ch/R10/Sec2.rpt
HAI #94-162.03 2-6
I
Waste activated sludge (WAS) will be air lifted to the aerobic sludge holding tank. Presented
■, in Table 2-4 is a design summary for the aeration basin.
2.7 SECONDARY CLARIFIER
Both RAS and WAS will be withdrawn from the bottom of the clarifier. The RAS will be
withdrawn using an airlift and discharged into an aluminum return box with a V-notch weir for
measurement which will assist the operators with control of the RAS flow rate. The air lifts
will be sized to be capable of pumping up to 150 percent of ADF. Table 2-5 presents a design
summary for the clarifiers.
2.8 CHLORINE CONTACT
After clarification effluent will enter the chlorine contact tank. The chlorine contact tank will
be sized to provide a minimum of 15 minutes contact time at peak flow conditions. The
chlorine contact tank will be equipped with at least two baffle walls.
2.9 EFFLUENT DISPOSAL
The existing Class V injection wells will be utilized. We understand that additional wells are
proposed by the Owner and will be completed by January, 1995. We understand that it is not
necessary to pump effluent to the wells, as there is sufficient head available from the chlorine
contact tank.
2.10 RESIDUALS MANAGEMENT
An aerobic sludge holding tank will be provided within the proposed WWTP. It will have a
nominal capacity of 20,000 gallons and thus, provide approximately 7 - 10 days waste sludge
holding capacity. The sludge holding tank will be equipped with a decanter and thus, solid
contact of 1.8 to 1.5 % should be achieved. The existing digester will be converted for use as
a lime stabilization tank and equipped with a mechanical mixer. Waste sludge will be
transferred to the lime stabilization tank by a recessed impeller pump. Utilizing the existing
tankage would require that a batch process of sludge stabilizer be run approximately 7 - 10
days. Based on 0.75 % solids, this would require approximately four trucks per week.
MAR/ch/R10/Sec2.rpt
HAI k94-162.03 2-7
TABLE 2-4
AERATION BASIN DESIGN SUMMARY
EXTENDED AERATION MODE
Process Parameter Value
Volumetric Loading @ ADF, (lb. BOD/1000 CF/Day)
13.7
Hydraulic Detention Time, (HR)
24.0
Side Water Depth, (FT)
12.5
Nominal Tank Volume, * (GAL)
300,000
F/M Organic Loading, (lb. BOD/lb MLVSS/Day)
0.105
MLVSS, (mg/1)
2100
Carbonaceous Oxygen Demand, (lb. 02/lb. BOD)
1.5
Nitrogenous Oxygen Demand, (lb. 02/lb. TKN)
4.6
Minimum Mixing Requirements, (SCFM/1000 CF)
20
Required Air Flow, SCFM (Process Limited)
990
No. of Operating Tanks
1
MAR/ch/R10/2-4. tab
HAI #94-162.03 2-8
TABLE 2-S
CLARIIJER DESIGN SUMMARY
Process Parameter
Quantity
Area, (SF)
SWD, (FT)
Hydraulic Loading @ ADF, (GPD/SF)
Hydraulic Loading @ Qp, (GPD/SF)
Design Recycle Rate (Qr), Percent ADF
Value
1
550
8-12
545
818
150
MAR/ch/R 10/2-5. tab
HAT #94-162.03
2-9
r-.
It is understood that ORCA will provide a lime storage area. We recommend it be at ground
17 level and have sufficient space for two pallets of lime. Anticipated hydrated lime usage is
expected to be approximately one pallet per month. A motorized lift will be furnished by the
design/builder which will transport the bag lime from the storage building up to the lime slurry
mix equipment. The lime slurry will then be added to the sludge stabilization tank.
2.11 PLANT MONITORING AND CONTROL
A flow recording device will be provided in the chlorine contact tank. It shall be the
ultrasonic type and be equipped with a circular chart recorder.
2.12 CHLORINATION SYSTEM
We understand the chlorine solution feed system will be in place and not require any
modification other than connecting to the solution feed line.
2.13 SITE FEATURES
2.13.1 Access
The Florida Administrative Code does require access control around wastewater
facilities. We have not included fencing in this proposal.
2.13.2 Li htin
Site and tank top lighting is not proposed for the WWTP.
2.13.3 Landscaping
Landscaping is not proposed.
MAR/ch/R10/Sec2.rpt
HAI #94-162.03 2-10
C
2.13.4 Drainage
® Since the tankage is open and there are no other impervious areas, there will be no
significant stormwater run-off from the WWTP. Thus, no provisions for stormwater
run-off are incorporated in the overall detention facility plan.
U1
U11
MAR/ch/R10/Sec2.rpt
HAI #94-162.03 2-11
f
_o
SECTION 3
MATERIAL AND EQUIPMENT
3.1 GENERAL
The design -builder shall furnish and install the equipment necessary for the effective operation
of the wastewater treatment plant, including piping, valves, fittings, blower/motor units with
enclosure, hopper type clarifier with skimmer assembly and return sludge piping for the flow
equalization, walkway with handrails, access ladder, electric control panels, and chlorine
contact basin.
3.2 GENERAL MATERIALS OF CONSTRUCTION
The treatment tankage shall be constructed of poured -in -place reinforced concrete. An
engineer registered in the State of Florida shall design the structural elements of the tankage.
Our proposal is based on the site having a minimal bearing capability of 2,000 psf.
Non -corrosive polyvinyl chloride (PVC) piping and fittings shall be used where possible.
Standard flexible type transition fittings shall be used where possible for inter -tank transfer
lines. Nuts and bolts used in bolting equipment in place shall be hot dipped galvanized steel.
Chlorine solution piping shall be schedule 80 PVC.
3.3 ELECTRICAL SYSTEM
We have verified that 3-phase power is readily available. NEMA type 3R enclosures,
fabricated of 12 gauge steel shall house the control equipment. The panels shall be gasketed
and dust tight. Panels shall have a front door capable of opening approximately 180 degrees.
The exterior of the panel shall be coated with an enamel finish. The outside door shall be held
closed by lock -down clips. Equipment mounted in the panel shall be securely fastened to the
removable back panel. The back panel shall be tapped to accept the mounting screws.
Thermal magnetic air circuit breakers shall be provided to branch disconnect service and over
current protection of motors, control and auxiliary circuits. Magnetic across -the -line starters
MAR/ch/R10/Sec3.rpt
HAI #94-162.03 3-1
with under -voltage release and heat sensing coils for each phase shall be provided to give
r positive motor protection.
Low voltage control wiring shall be encased in plastic wireway mounted with screws. The
panel shall have warning tags specifying voltage, phase, and danger. A wiring diagram shall
be provided in the panel. The control panel shall meet NEMA and/or N.E.C. standards.
On -plant electrical wiring shall be encased in rigid Schedule 40 PVC conduit. Flexible liquid
tight conduit shall be used where possible to make connections from conduit to motor boxes
and other equipment. Wiring and conduit shall be in accordance with NEMA and N.E.C.
standards.
3.4 PAINT SYSTEM
Painting is not proposed for this project. During our visit of the facilities, it was noticed that
neither the interior or exterior of the existing tanks were coated and thus, have not proposed it
for this project. Only PVC piping shall receive the appropriate coating for ultraviolet
protection.
3.5 PRETREATMENT
Existing force mains will be rerouted into the proposed pretreatment unit. The mechanical bar
screen will be of a type as manufactured by Vulcan. The influent structure will either be
constructed of welded aluminum or concrete. The discharge chute shall also be aluminum.
3.6 FLOW EQUALIZATION AND AERATION TANKAGE
3.6.1 Blowers
The existing blowers shall be utilized for the proposed aeration tankage. Dual single -
stage regenerative blowers shall be provided for the flow equalization tank.
The proposed blowers and motors shall be mounted on a structural steel blower skid,
shipped loose to mount on a concrete slab. Each blower/motor unit shall be equipped
with a metal belt guard, which shall comply with OSHA specifications. The blower
MAR/ch/R10/Sec3.rpt
HAI #94-162.03
3-2
1
:t
l
kid shall be equipped with pressure relief valves, discharge check valves and blower
s eQ PP
intake filters. The blower skid shall be isolated from the treatment plant by the use of
vibration dampeners in the piping system.
The pressure relief valve shall be of the spring -loaded type. The valve shall be
equipped with an adjustable spring. The spring shall be protected from corrosion by
heavy-duty axle grease. The valve shall be mounted on the air header system. The
pressure relief valve shall be factory tested and adjusted prior to shipment.
Each blower shall be provided with an intake filter and, if required, a discharge
silencer. The intake filter shall remove dust and particulate matter from the air to a
minimum size of 10 microns. The intake filter shall be mounted on the blower intake
connection.
3.6.2 Air Header and Air Diffusers
The plant air header system shall be aluminum.The headersystem will be located so
as to provide maximum space along walkways.
The diffusers shall be non -corrosive, lightweight, and removable without dewatering
the compartment.
Each diffuser shall be constructed of stainless steel suitable for waste water service.
Diffusers shall be Sanitaire D-24 model coarse bubble. The diffuser arrays shall be
spaced to provide efficient oxygen transfer. A Schedule 80 PVC drop pipe shall be
provided with a bronze isolation valve. A union shall be provided to permit easy
removal from the tank without the need for mechanical lifting devices.
3.6.3 Walkway and Handrail
The plant shall be equipped with a service walkway extending over the tank allowing
for ease of maintenance of the equipment. The walkway shall be constructed of
structurally supported aluminum grating panels or concrete. If grating is utilized,
sections shall be provided with cut-outs for access to air control valves.
MAR/ch/R10/Sec3.rpt
HAI #94-162.03 3-3
The access stairs shall be of all aluminum construction.
An aluminum handrail system shall extend along the entire length of the walkway on
both sides. The vertical handrail posts and horizontal handrails shall be constructed of
aluminum and may be attached to the air header system. Walkway, handrail and ladder
shall be in accordance with OSHA specifications.
3.7 CLARIFIERS
The clarifiers will be of the hopper type design. The clarifiers shall be equipped with an inlet
energy dissipation structure, surface skimmer, sludge airlift, scum baffle and adjustable
effluent weir. The hopper side slope shall not be less than 601 from the horizontal plane and
shall have a sludge collector sump of approximately one foot square.
The clarifier shall be equipped with a 3-inch sludge airlift for sludge transfer and a 3-inch
skimmer for floating solids. The sludge return system shall be adjustable and designed for a
recirculation capacity of up to 150 % of average daily flow and shall transfer settled sludge to
the aeration tank or the digester. Flow adjustment of the air lift shall be accomplished using
air control valves.
3.8 WASTE SLUDGE HOLDING
An area of the treatment unit will be partitioned to function as the aerobic sludge holding tank.
Air diffusers will be provided in this section similar to those described for the aeration basin.
This section will be equipped with a floating decanter pipe to remove excess water from the
digested sludge, which will decrease the volume of sludge to be transferred to the lime
stabilization tank.
3.9 LIME STABILIZATION TANK
ry equipment will be provided. All material and equipment
A lime slurry mix tank and accesso
furnished will be non -corrosive and suitable for the application intended. The existing plant
water service will be extended from the nearby hose bib for use in mixing lime.
MAR/ch/R10/Sec3.rpt
HAI /194-162.03 3-4
0
The line stabilization tank will be equipped with a mechanical mixer. The materials of it will
also be suitably selected to provide corrosion resistance.
In order to facilitate ease of operations, a lime bag lift will be provided that will permit the
bag lime to be loaded below and raised to the lime slurry mix equipment. The lift will be
constructed from non -corrosive material suitable for the application.
V
V
MAR/ch/R10/Sec3.rpt
HAI #94-162. 03
3-5
11
Cronin, Jackson, Nixon & Wikon
CERTIFIED PUBLIC ACCOUNTANTS. P.A.
JAMUL CAALSMT. CP.A.
jWN jr. CAS JAL Ct.A_
Aowrjr.rAc=W- CPA
APAMbA W. AhA4AM9 CPA
ROM"r c NOW. CPUL
JAMML- WJltUW, GM.
To the officers and Directors
North Rey Largo Utility Corp.
25W GULF-TV44 Y MOULEVARD
SUITQM
CLlEARWAUX FLORIDA SOM-019
(813) "I-AW
nuUMV/•>XX
August 1, 1994
We have compiled the accompanying Special Report of North Key Largo
Utility Corp., consisting of actual, annualized, and projected
statements of cash flow before debt service for the eight years
ending December 31, 1998.
This Report was prepared to provide information to management
concerning the financial feasibility of a transfer of utility
assets from Ocean Reef Club, Inc. to North Rey Largo Utility Corp.
and the amount of debt service the utility system could support
under new operation and ownership, and should not be used for any
otbar purpose.
A compilation is limited to presenting, in the form of actual and
projected data, information that is the representation of
management and does not include an evaluation of the support for
the assumptions underlying the presentation. We have not examined
this special Report and, accordingly, do not express an opinion or
any other form of assurance on it or the assumptions disclosed
therein. rurthermore, there will usually be differences between
the actual and projected results because events and circumstances
frequently do not occur as expected and those differences may be
material. We have no responsibility to update this Report for
events and circumstances occurring after the date of this Report.
, f �-� W M-; �w /" & W, C, IL'� 4 �-Ww' .
CRONIN, JACKSON, NIXON & WILSON
Z 4;:06008L8b06 q�-99777
: WdTS:£ b6-T -8 :
G :AS 1N3S
a
North Key Largo Utility Corp.
Actual, Annualit@d, and Projected Statements of Cash Flow
For the Eight Years Ending December 31, 1998
Summary of Significant Projection assumptions
The financial projection premants to the best of management's knowledge
and belief, North Key Largo Utility Corp.'s (company) expected cash flow
before debt service and the amount of bonds which could be issued and
serviced, based on the assumptions and estimates set forth below.
The projections contained herein reflect managenentle bast estimate of
the expected cash flow from operations as of August 1, 1994, the date of
this projection. The presentation is designed to provide information
about the feasibility of financing approximately $3.1 million in tax
exempt Industrial Development Revenue Bonds.
The assumptions and estimates disclosed herein are those that management
believes are sicnificant to the projection. There will usually be
differences between the projected and actual results because events and
circumstances frequently do not occur as expected and those differences
may be material.
1. General desgrrip i on
North Key Largo Utility Corp. is a private wastewater utility
located on North Key Largo, Florida. The Company intends to
serve the community of ocean Reef Club and is organized as a
not -for -profit corporation owned and controlled by the
residents who receive sewer utility service. The Utility
desires to obtain approximately $3.1 million in bond proceeds
which will be used to acquire the existing utility assets from
ocean Reef Club, Inc. and construct a new wastewater treatment
and disposal facility, At December 31, 1993, the system
provided service to approximately 1,143 Equivalent Residential
Connections (ERC's). These connections consist of single
family homes, multi -family residences, and a variety of
® commercial services.
Currently, the system is regulated by the Florida Public
service commission. The Commission determines the rates and
charges which are billed the residents of Ocean Reef Club.
Under operation and ownership of North Key Largo Utility Corp.,
it is expected that the system will be exempt from Commission
regulation.
II. Projected absorption
Historically, the system has connected approximately five new
ERC's as customers each year. The projection assumes this
trend will continue throughout the projection period.
Additionally, service was extended to 200 dock slips at the
marina in 1994. Revenue from these slips amounts to
approximately $22,000 annually, and represents approximately 56
ERC's.
£ #:06009LGb06 t-99TTZ
WC2S:£ b6-7 -S .
U ; AS 1N3S
III. Proiected revenue
Projected revenue was based on the average annual revenue per
ERC. During 1993, annual revenue per ERC amounted to $388.
The projection assumes a 7% increase in 1994, with no projected
increases thereafter.
No projected increases for inflation were made, since the
Company intender to increase revenue to offset any increases in
expenses, if necessary.
IV. Proiect
Operating expenses for the year ended December 31, 1993, were
analyzed and divided into fixed and variable expenses.
- Variable expenses consist of sludge removal, purchased power,
and chemicals. All other operating expenses were assumed to be
fixed. The following assumptions and estimates were used for
the annualized year ended December 31, 1994, and throughout the
projection period.
1.
1993 variable expense per ERC amounted to $55. Annual
increases in variable expenses were based on the
projected effective ERC's.
2.
1993 discretionary management fe*s and other contract
services paid to a related party were reduced to an
annual amount of $30, 000. Management teas are paid for
billing, accounting, and management services.
3.
Under Florida Public service Commission (PSC)
jurisdiction, the system pays regulatory assessment
fees based on 4.5% of operating revenue. Also, the
system pays local property taxes and payroll taxes.
The projection assumes that North Key Largo Utility
Corp. will become exempt from PSC regulation.
Therefore, regulatory assessment fees totalling
approximately $20,000 in 1993 have been excluded from
the projection. Also, since the Company is a not -for -
profit corporation, local property taxes have been
excluded from the projection.
V. Bonding
CADA2 *1
Based on projected 1994 cash flow of approximately 0276,000,
the Company will have sufficient net revenue to service a $3.1
million
bond issue, based on 30-year amortization, an interest
rate of
7%, and a coverage requirement of 1.10 times.
b :05008GSb0o f-99T72! : WJZS:i b6-7 -8 : G:AS 1N3S
North Key Largo Utiiiiy Corp.
Wastewater Operating Division
Utility Bonding Capaddty Based on Projected 1904 CaM Flow
Cash flow available for debt service
DM& by ooverago fador
Cash flow not of coverage
Annual debt asnrlos on 30 year 69,100.000 bond issue, Ili,
Interest rate. I&M annual payments of principal and Imeram
s 270,000
1,10
8 259_OOQ
Schedule No,1
Page 1 of Q
S # s 0b008LBt*6 f-99T TZ : Wd£S : £ bG—T —a : d : AS 1NM
North Key Largo UtIlky Corp.
Amortization Schedule
s9,100,000 on January 1, 1 s08 at TV. Interest with 30 annual payments
Payment
Interest
Principal
Total
Remaining
Number
Pawnent Date PaYment
Payment
Pamwrn
Balance
1
January 1. 1am
= 217,000
S 32,818 $
249.818
t 0.0157,182
2
January 1, 1997
214,703
35,116
240.818
3,032,007
3
January 1, 1900
212,245
37,573
249.016
2,994,494
4
January 1, 1999,
209.515
40,203
249,810
2.954,291
3
January 1. 2000
206,800
43,0/a
249,813
2,911.273
0
January 1, 2001
203,789
45,029
249,018
2,a05,244
7
January 1. p002
200,567
49,291
242,516
2,21d,990
a
January 1. 2000
197.120
62,698
249,818
2,76%295
9
January 1, 2004
103,431
58,987
240,818
2,704908
10
January 1, 9005
109,484
80,334
249,815
2,646,574
11
January 1, 2006
185.260
54,55a
249,ai8
2,502,01a
12
January 1, 2007
100.741
0910T7
249,ala
L012.939
13
January 1. 2008
173,900
73,912
249,016
2,439,027
14
January 1. 2009
170,732
79,086
249,018
2,859,941
15
January 1. 2010
165,198
84,622
249,818
2,276,319
16
January 1, 2011
1159,272
90,a46
240,a18
2,184,773
17
January 1. 2019
162,034
98,884
240,818
2,087,889
18
January 1. 2013
148,162
103,666
249,818
1,084,229
19
January 1, 2014
138.596
110,922
249,818
1,879,301
20
January 1, 2015
131,131
118,687
249,818
1,754,014
21
January 1, 2010
122.023
125,995
242,818
1.027.419
22
January 1, 2017
113,933
135,885
249,816
1.401.734
23
January 1, 2010
104,421
145,897
242.813
1.94a,aa7
24
January 1, 2019
94,244
155.574
249,618
1,190,763
25
January 1, 2020
63,353
168,463
240,818
1,0244,208
26
January 1, 2021
71,701
178.117
249.818
846,161
27
January 1, 2022
59,233
190,855
242,510
085.59a
2a
January 1, 2023
45.892
203.920
249.at0
451.670
29
January 1, 2W4
31,017
210.201
249,ata
208,469
30
January 1, 2026
10,343
233,469
249,818
0
Total ,�
4.304.534
"A QQ,000 4
7.494.640
8ctwdub No.1
Pape 2 of 2
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(-99TTE : w s : - - : tJ:AG IN3G
Worth Kay largo Utility Corp.
Wastawater Operating Division
Annualized Fixed and Variable 0 & M Expense
For the Year Ended December 31, 1 ON
Unaudited
Adiuslod
Total
Adlustments Total
H
Wades and wages — etnpi0y*m
$ 55,670
$ $ 05,870
EMk yee pe. wkx^s and benefits
8,306
9,906
Ccr*wwW service — engineering
3,480
3,480
Co * ac%W Mrvioe — a000untlrrg
8,786
8,785
Cono7 aww "r4l" - N40
2001
2,001
oorferaotusl setvioe - managsrnaMfee
121,800
(101.800) (A) 20.000
Carttrra ww "Moe - other
30,888
(20,888) A 10,000
PAnW of equonumt
5017
0,017
Transpormbon wponas
4,485
4,465
ingumrm — gwmW liability
1.60o
1,000
kwurwwe - workman Comp.
1,440
1,410
bAYcMlerts+:x�sGVPWM
3,067
3,067
Maudais and supplies
2,438
2,438
Totalfbaad wgwnses
VadabM *= r"
Sludge removal a*erne
Pwalwnd power
ChemicoM
Divide by 1 W3 average ERC's
Vw*bis sxpwm per ERC
S 281 A38 $ f� $
$ 20,440 s S 20,440
35,000 35,000
7,270 7,270
S 82.710 S_ 0 S
(A) Ellminft disoretionery portion of management fee
(9) Remove non —reavying contractual services —other
Li
--- :..
Schedule No. 3
Page 2 of 2
6 #:06008LM6 r9917Z : w8ss:E b6_1 -8 : U:AE 1N3S
North Key Largo Utility Corp.
Wastewater Operating Division
Adjusted Operations and Maintenance (O & " Dc)onse
Year Ended December 31,1993
AOMI 0 & M expense per annual reports
LMr Discmum aM managerrant fee
Non —recurring contractual services — other
Ad$noed 0 a M expense
1869
$ 323,748
(101,800)
(20,M)
(1ZZ,[fIBZ
s 2Q1.ot�
Ocheduls No. A
0T#:06008G8706 r99TTZ : W89S:F b6-7 -8 : d:A8 INM
e41
t
CLASS "B"
WATER and/or SEWER UTILITIES
(Gross Revenue of $150,000 or More but Less Than $750,000 Each)
ANNUAL REPORT
OF
Ocean Reef Club, Inc- —
EXACT LEGAL NAME OF RESPONDENT
363—S
Certificate Number(s)
•Z �-i IF.
FOR THE
MAY 1994
.rjo--fc'j pub!j,; terv;ce (:omrmision
if YV.:tar. any Wastew—ter
YEAR ENDED DECEMBER 31,1993
Form PSC/WAS 5 (Rev. 12/22/86)
:t
Cronin, Jackson, Nixon & Wilson
CERTIFIED PUBLIC ACCOUNTANTS, P.A.
JAMES L CARLSTEDT. C.P.A.
JOHN H. CRONIN, JR-, C.P.A.
ROBERT H. JACKSON, C.P.A.
BRENDA W. MCBARRON. C.P.A.
ROBERTC. NIXON, C.P.A.
HOLLYM. TOWNER C.P.A.
JAMES L WILSON, C.P.A.
officers and Directors
Ocean Reef Club, Inc.
2560 GULF -TO -BAY BOULEVARD
SUITE 200
CLEARWA TER. FLORIDA 34625-4419
(813) 791-4010
TELECOPIER
(813) 797-3601
May 27, 1994
We have compiled the 1993'Annual Report of Ocean Reef Club, Inc. in
the accompanying prescribed form, in accordance with Statements on
Standards for Accounting and Review Services issued by the American
Institute of Certified Public Accountants.
Our compilation was limited to presenting, in the form prescribed by
the Florida Public Service Commission, information that is the
representation of the management of Ocean Reef Club, Inc. We have not
audited or reviewed the report referred to above and, accordingly, do not
express an opinion or any form of assurance on it.
This report is presented in accordance with the requirements of the
Florida Public Service Commission, which differ from generally accepted
accounting principles. Accordingly, this report is not designed for
those who are not informed about such differences.
O
CRONIN, JACKSON, NIXON & WILSON
General Instructions
1. Prepare this report inconformity with the 1984 National Association of Regulatory Utility Commissioners
Uniform System of Accounts for Water and/or Sewer Utilities.
12. Interpret all accounting words and phrases in accordance with the USDA.
3. Complete each question fully and accurately, even if it has been answered in a previous annual report. Enter
the word "None" where it truly and completely states the fact.
4. For any question, section, or page which is not applicable to the respondent enter the words "Not Applicable".
Do not omit any pages.
5. Where dates are called for, the month and day should be stated as well as the year.
6. All schedules should be rounded to the nearest dollar unless otherwise specifically indicated.
7. Complete this report by means which will create a permanent record, such as by typewriter.
8. If there is not enough room on any schedule, an additional page or pages may be added provided the format
of the added schedule matches the format of the schedule of the page with not enough room. Such a
schedule should reference the appropriate schedules, state the name of the utility, and state the year of the
report.
9. If it is necessary or desireable to insert additional statements for the purpose of further explanation of
schedules, such statement should be made at the bottom of the page or an additional page inserted. Any
additional pages should state the name of the utility, the year of the report, and reference the appropriate
schedule.
10. The report should be filled out in quadruplicate and the original and two copies returned by March 31 of the
year following the date of the report. The report should be returned to:
Florida Public Service Commission
Division of Water and Sewer
101 East Gaines Street
Tallahassee, Florida 32399-0873
TABLE OF CONTENTS
Schedule
Page
Schedule
Paqe
_
Executive Summary
Certification
E-1
Directors and Affiliates
E-7
General Information
E-2
Affiliation of Officers and Directors
E-8
_
Directory of Personnel Who Contact the Fla.
Businesses Which Are A Byproduct, Coproduct
Public Service Commission
E-3
or Joint Product of Providing Service
E-9
Company Profile
E-4
Business Transactions With Related Parties
Parent/Affiliate Organization Chart
E-5
— Part I and II
E-10
Compensation of Officers & Directors
E-6
Composite of Statistics
E-11
Business Contracts With Officers.
_
Financial Section
Comparative Balance Sheet — Assets
Companies
F-13
F-14
And Other Debits
F-1
Capital Stock
—
Comparative Balance Sheet — Equity
Long Term Debt
F-14
Capital and Liabilities
F-2
Statement of Retained Earnings
F-15
Comparative Operating Statement
F-3
Bonds
F-16
Schedule of Year End Rate Base
F-4
Advances From Associated Companies
F-16
Utility Plant
F-5
Accrued Taxes
F-17
Utility Plant Acquisition Adjustments
F-5
Accrued Interest
F-18
Accumulated Depreciation
F-6
Regulatory Commission Expense —
Rate Case Expense
F-18
_
Accumulated Amortization
F-6
Amortization of
Nonutility Property
F-7
Misc. Current and Accrued Liabilities
F-19
Special Deposits
F-7
Advances for Construction
F-19
Investments and Special Funds
F-8
Contributions In Aid Of Construction
F-20
Accounts and Notes Receivable — Net
F-9
Additions to CIAC Received from
Accounts Receivable From Associated
Capacity, Main Extension and
Companies
F-10
Customer Connection Charges
F-21
F-21
Notes Receivable From Associated Co.
F-10
Accum. Amortization of C.I.A.C.
Prepayments
F-11
Additions to CIAC Received from
Miscellaneous Deferred Debits
F-11
All Developers or Contractors
Unamortiz,,d Debt Discount and
Agreements
F-22
Expense and Premium on Debt
F-12
Reconciliation of Reported Net
Extraordinary Property Losses
F-13
Income With Taxable Income For
Notes Payable
F-13
Federal Income Taxes
F-23
Accounts Payable to Associated
F-13
AFUDC Calculation
F-24
AFUDC Capital Structure Adjustments
F-25
Water Operation
Section
Water Utility Plant Accounts
W-1
Statistics
W-6
.
Water Utility Expense Accounts
W-2
Water Treatment Plant, Mains,
_
Water Operating Revenue
W-3
Services and Meters
W-7
Basis for Water Depreciation Charges
W-4
Wells and Well Pumps, Reservoirs,
Analysis of Entries in Water
and High Service Pumping
W-8
Depreciation Reserve
W—S
Other Water System Information
ERC's
W-9
W-10
Pumping and Purchased Water
Calculation of
Sewer Operation
Section
Sewer Utility Plant Accounts
S-1
Pumping Equipment and Service
S-6
Sewer Utility Expense Accounts
S-2
Connections
S-7
Sewer Operating Revenue
S-3
Collecting and Force Mains
Information
S-8
Basis for Sewer Depreciation Charges
S-4
Other Sewer System
Analysis of Entries in Sewer
Calculation of ERC's
S-9
Depreciation Reserve
S-5
5
EXECUTIVE
SUMMARY
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•!!1
Ocean Reef Club. Inc. ANNUAL REPORT OF County: Monroe
(Exact Name of Utility)
List below the exact mailing address of the utility for which normal correspondence should be sent:
31 Ocean Reef Drive C-300
Ke Largo, Florida 33037
Telephone: 30S 367-2611
Name and address of person to whom correspondence concerning this report should be addressed:
Robert C. Nixon, CPA
Cronin Jackson, Nixon and Wilson, CPA's
2560 Gulf —to —Bay Blvd, Suite 200
Clearwater Florida 33625 Telephone: 813 791-4020
List below the address of where the utility's books and records are located:
31 Ocean Reef Drive C-300
Key Largo, Florida 33037
Telephone: ( 305 367-2611
List below any groups auditing or reviewing the records and operations:
Cronin, Jackson, Nixon and Wilson, CPA's
McGladrev & Pullen
Date of original organization of the utility: 1 / 1 / 86
Check the appropriate business entity of the utility as filed with the Internal Revenue Service:
Individual = Partnership = Sub S Corporation 1, Av 1, 1120 Corporation
List below every corporation or person owning or holding directly or indirectly 5 percent or more of the voting securties
of the utility:
1. Ocean Reef Ulub, Inc.
2.
3.
4.
5.
6.
7.
8.
9.
10.
t
Name
Percent
Ownership
100 %
o/
0
o/
0
%
°
o/
°
°/
°
E-2
YEAR OF REPORT
UTILITY NAME:
Ocean Reef Club, Inc. December 31,1993
OF PERSONNEL WHO CONTACT THE FLORIDA PUBLIC SERVICE COMMISSION
DIRECTORY
NAME OF
TITLE
ORGANIZATIONAL
USUAL PURPOSE
COMPANY
OR
UNIT
FOR CONTACT
REPRESENTATIVE 1 2
POSITION
TITLE 3
WITH FPSC
Robert C. Nixon CPA Cronin, Jackson,
Accounting and rate
Nixon & Wilson
matters
Marty Deterding Attorney Rose Sundstrom &
Bentley
Legal matters
(1) Also list appropriate legal counsel, accountants and others who may
not be on general payroll.
(2) Provide individual telephone numbers if the person is not normally
reached at the company.
(3) Name of company employed by if not on general payroll.
E-3
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club Inc. December 31,1993
COMPANY PROFILE
Provide a brief narrative company profile which covers the following areas:
A. Brief company history.
B. Public services rendered.
C. Major goals and objectives.
D. Major operating divisions and functions.
E. Current and projected growth patterns.
F. Major transactions having a material effect on operations.
(A) The Company was organized in 1969 to provide sewer treatment service to the residents of Ocean Reef
Club on Key Largo, Florida.
(B) Sewer service only
(C) To provide adequate sewage treatment service and provide a fair rate of return to the stockholders.
(D) Sewage treatment
(E) The service area is nearing build —out. Growth is expected at about 1% annually.
(F) The Ocean Reef Utility Company was purchased March 1, 1993 by Ocean Reef Club, Inc. as a
operating division. Certificate transfer was approved under Docket No. 930436—SU.
E-4
YEAR OF REPORT
December 31.1993
UTILITY NAME: Ocean Reef Club, Inc.
PARENT / AFFILIATE ORGANIZATION CHART
Current as of 12 / 31 193
Complete below an organizational chart that shows all parents and subsidiaries a) and f the utility. The chart must also show
Ocean Reef Club, Inc.
100%
Utility Operating Division
E-5
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31 1993
COMPENSATION OF OFFICERS
For each officer, list the time spent on respondent as an officer compared to time spent on total
business activities and the compensation received as an officer from the respondent.
NAME
a
TITLE
(b)
% OF TIME
SPENT AS
OFFICER OF
UTILITY
c
OFFICERS
COMPENSATION
d
Thomas N. Davidson
Chairman
—
%
%
$
$
None
None
Alan J. Goldstein
Vice Chairman
5
%
$
None
John J. Hrad
President
%
$
Robert R. Ambridge
Senior Vice President — Property
Development
5
%
$
None
Allen F. Anderson
Vice President — Marketing
—
%
$
None
Kenneth A. Luban
Vice President & Secretary
5
%
$
None
James M. Truckenbrod
Vice President — Finance
5
%
S
None
4o
S
COMPENSATION OF DIRECTORS
For each director, list the number of director meetings attended by each director and the
compensation received as a director from the respondent.
NAME
a
TITLE
(b
NUMBER OF
DIRECTORS
MEETINGS
ATTENDED
c)
DIRECTORS
COMPENSATION
(d
Thomas N. Davidson
Chairman
1
$ None
Alan J. Goldstein
Vice Chairman
1
$ None
John R. Hrad
President
1
$ None
Robert R. Ambridge
Senior Vice President —
$
Property Development
1
$ None
Allen F. Anderson
Vice President — Marketing
1
$ None
Kenneth A. Luban
Vice President & Secretary
1
$ None
None
James M. Truckenbrod
Vice President — Finance
1
$
E-6
!I
1:1
- I
ei
- I
i
-1
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31,1993
BUSINESS CONTRACTS WITH OFFICERS, DIRECTORS AND AFFILIATES
List all contracts, agreements, or other business arrangements* entered into during the calendar
year (other than compensation related to position with Respondents) between the Respondent and
officer and director listed on page E-6. In addition, provide the same information with respect to
professional services for each firm, partnership, or organization with which the officer or director is
affiliated.
NAME OF OFFICER,
DIRECTOR OR AFFILIATE
a)
IDENTIFICATION OF
SERVICE OR PRODUCT
bl
AMOUNT
c
NAME AND ADDRESS OF
AFFILIATED ENTITY
d)
None
$
* Business Agreement, for this schedule, shall mean any oral or written business deal which binds the
concerned parties for products or services during the reporting year or future years. Although the
Respondent and/or other companies will benefit from the arrangement, the officer or director is,
however, acting on his behalf or for the benefit of other companies or persons.
E-7
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31.1993
AFFILIATION OF OFFICERS AND DIRECTORS
For each of the officials listed on page E-6, list the principal occupation or business affiliation and all
affiliations or connections with any other business or financial organizations, firms, or partnerships.
For purposes of this part, an official will be considered to'have an affiliation with any business or
financial organization, firm or partnership in which he is an officer, director, trustee, partner, or a
person exercising similar functions.
NAME
a
PRINCIPAL
OCCUPATION
OR BUSINESS
AFFILIATION
b
AFFILIATION
OR
CONNECTION
c
NAME AND ADDRESS
OF AFFILIATION
OR CONNECTION
d
Thomas N. Davidson
Chairman
Ocean Reef Club, Inc.
North Key Largo, Florida
Alan J. Goldstein
Vice Chairman
Ocean Reef Club, Inc.
North Key Largo, Florida
John R. Hrad
President
Ocean Reef Club, Inc.
North Key Largo, Florida
Robert R. Ambridge
Senior Vice
President —
Property
Development
Ocean Reef Club, Inc.
North Key Largo, Florida
Allen F. Anderson
Vice President —
Marketing
Ocean Reef Club, Inc.
North Key Largo, Florida
Kenneth A. Luban
Vice President &
.Secretary
Ocean Reef Club, Inc.
North Key Largo, Florida
James M. Truckenbrod
Vice President —
Finance
Ocean Reef Club, Inc.
North Key Largo, Florida
E-8
t
1
t
UTILITY NAME: Ocean Reef Club, Inc.
YEAR OF REPORT
December 31.1993
BUSINESSES WHICH ARE A BYPRODUCT, COPRODUCT OR JOINT PRODUCT RESULT
OF PROVIDING WATER OR SEWER SERVICE
Complete the following for any business which is conducted as a byproduct, coproduct or joint product
as a result of providing water and/or sewer service. This would include any business which requires the
use of utility land and facilities. Examples of these types of businesses would be orange groves,
nurseries, tree farms, fertilizer manufacturing, etc. This would not include any business for which the
assets are properly included in Account 121 — Nonutility Property along with the associated revenues
and expenses segregated out as nonutility also.
E-9
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. I December 31 1993
BUSINESS TRANSACTIONS WITH RELATED PARTIES
List each contract, agreement, or other business transaction exceeding a cumulative amount of $500 in any
one year, entered into between the Respondent and a business or financial organization, firm, or partnership
named on pages E-2 and E-6 identifying the parties, amounts, dates and product, asset, or service
involved.
Part I. Specific Instructions: Services and Products Received or Provided
1. Enter in this part all transactions involving services and products
received or provided.
2. Below are some types of transactions to include:
— management, legal and accounting — material and supplies furnished
services — leasing of structures, land and _
— computer services equipment
— engineering & construction services — rental transactions
— repairing and servicing of equipment — sale, purchase or transfer of
various products
NAME OF COMPANY
OR RELATED PARTY
a
DESCRIPTION
SERVICE AND/OR
NAME OF PRODUCT
b
CONTRACTOR
AGREEMENT
EFFECTIVE
DATES
c
ANNUAL CHARGES
(P)urchased /
or /
(S)old / AMOUNT
d) e
Ocean Reef Club, Inc.
Management & accounting
Open
P
$ 121,800
E-10(a)
BUSINESS TRANSACTIONS
WITH RELATED PARTIES (Cont'd)
Part II. Specific Instructions: Sale, Purchase and Transfer of Assets
Enter in this part all transactions relating
3. The columnar instructions follow:
1.
to the purchase, sale or transfer of assets.
(a) Enter name of related party or company.
2. Below are examples of some types of
(b) Describe briefly the type of assets
purchased, sold or transferred.
transactions to include:
(c) Enter the total received or paid. Indi-
"S".
- purchase, sale or transfer of equipment.
cate purchase with "P" and sale with
d Enter the net book value for each item
()
— purchase, sale or transfer of land
reported.
and structures.
— purchase, sale or transfer of securities.
e Enter the net profit or loss for each item
() (column (c) — column (d)).
— noncash transfers of assets.
dividends other than stock
(� Enter the fair market value for each item
below or in a sup —
— noncash
dividends.
reported. In space
schedule, describe the basis
—. writeoff of bad debts or loans.
plemental
used to calculate fair market value.
SALE OR NET GAIN
NAME OF COMPANY
PURCHASE BOOK OR
PRICE VALUE LOSS
OR RELATED PARTY DESCRIPTION OF ITEMS
d) e
b
a
None
FAIR
MARKET
VALUE
E-10(b)
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31.1993
COMPOSITE STATISTICS FOR ALL
PRIVATELY OWNED WATER AND SEWER UTILITIES UNDER AGENCY JURISDICTION
DESCRIPTION WATER SEWER
(b) (c)
PLANT (Intrastate Only)(000's Omitted):
$ N/A
$
2,021
Plant in Service --------------------
Construction Work In Progress_______________________________
Plant Acquisition Adjustment ------ ---------------------------
Plant Held For Future Use__________________________________
Materials and Supplies____________________________________
Less:
Accumulated Depreciation and Accumulated Amortization_ _ _ _ _ _ _ _ _
_ _ _ _ - _
592
Contributions In Aid Of Construction (Net) ——— ———— —————— —— —— —
—— —— ——
644
Net Book Cost ________________________
$
$
785
REVENUES AND EXPENSES (Intrastate Only)(000's Omitted):
Operating Revenues
$
$
444
Depreciation and Amortization Expense----------------
—_—_—_
$
$
51
Income Tax Expense — — — — — — —— —— ————————— ——— ——— ——————
— — — — ——
42
Taxes Other Than Income — — — —— —— ———— —— ——— ——— ——— ——————
— —————
325
Other Operating Expenses————————————————————————————
——————
Total Operating Expenses_______________________
$
$
418
Net Operating Income
-__
$
$
26
Other Income
$
$
0
16
Other Income Deductions__________________________________
$
$
10
Net Income
CUSTOMERS (Intrastate Only):
437
Residential — Yearly Average — — —— ——— —— —————— —— —— ——— —— —
— — —————
Commercial — Yearly Average --------------------------
--- _—_—
Industrial — Yearly Average_________________________________
147
Others — Yearly Average_.(Multi—family) —————————— —— ————— ——
— ——————
635
Total—-------———————————————————————————————
———————
OTHER STATISTICS (Intrastate Only):
Average Annual Residential Use Per 1,000 Gallons _(1)_
$
$
158
4.16
Average Annual Residential Cost Per 1,000 Gallons -(1)------------------
$
25.91
Average Residential Monthly Bill — _ — _ _ _ _
_ _ _ _ __
$
$
$
3,183
Gross Plant Investment Per Customer__________________________
(1) Averages for all customers
E-11
51
FINANCIAL
SECTION
I
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31.1993
COMPARATIVE BALANCE SHEET — ASSETS AND OTHER DEBITS
ACCT.
REF.
CURRENT
PREVIOUS
NO.
ACCOUNT NAME
PAGE
YEAR
YEAR
a
b
c
d
e
UTILITY PLANT
101-105
Utility Plant---------------------
F-5
$ 2,021,276
$ 1,769,036
108-110
Less: Accumulated Depreciation
and Amortization
F-6
(591,961)
(857,033)
Net Plant
1,429,315
912,003
114-115
Utility Plant Acquisition
Adjustments (Net)________________
F-5
Other Plant Adjustments (specify)_ _ _ _ _ _ _ _
Total Net Utility Plant _ _ _ — _ _ _ _
1,429,315
912,003
OTHER PROPERTY AND INVESTMENTS
121
NonutilityProperty ________________
F-7
122
Less: Accumulated Depreciation
and Amortization
Net Nonutility Property_ _ _ _ _ _ _ _ _ _ _ _ _ _
123
Investmenty in Associated Companies_ _ _ _ _
F-8
124
Utility Investments_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
F-8
125
Other Investments__________
F-8
127
Special Funds___________________
F-8
Total Other Property and Investments _ _ _ _ _
CURRENT AND ACCRUED ASSETS
131
Cash
(402)
132
------------------------
Special Deposits
F-7
134
Working Funds__________________
135
Temporary Cash Investments _ _ _ _ _ _ _ _ _
141-144
_
Accounts and Notes Receivable Less
Accumulated Provision for
Uncollectable Accounts _ _ _ _ _ _ _ _ _ _ _
F-9
145
Accounts Receivable from Associated
Companies___________________
F-10
146
Notes Receivable from Associated
Companies___________________
F-10
151
Materials and Supplies _ _ _ _ _ _ _ _ _ _ _ _ _
162
_
Prepayments____________________
F-11
171
Accrued Interest and Dividends Receivable__
174
Misc. Current and Accrued Assets_ _ _ — _
Total Current and Accrued Assets
(402)
_
F-1 (a)
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31.1993
COMPARATIVE BALANCE SHEET — ASSETS AND OTHER DEBITS
ACCT.
NO.
a
ACCOUNT NAME
b
REF.
PAGE
c
CURRENT
YEAR
d
PREVIOUS
YEAR
e
181
182
186
190
DEFERRED DEBITS
Unamortized Debt Discount & Expense_ _ _ _ _
Extraordinary Property Losses_ _ _ _ _ _ _ _ _ _
Misc. Deferred Debits _ _ _ _ _ _ _
Accumulated Deferred Income Taxes_
Total Deferred Debits
TOTAL ASSETS AND OTHER DEBITS
F-12
F-12
F-11
27,000
27,000
$ 938,601
1,429,315
NOTES TO THE BALANCE SHEET
The space below is provided for important notes regarding the balance sheet.
I
11
E
F
F
F
E
UTILITY NAME: Ocean Reef Club, Inc.
YEAR OF REPORT
December 31.1993
COMPARATIVE BALANCE SHEET — EQUITY CAPITAL AND LIABILITIES
ACCT.
REF.
CURRENT
PREVIOUS
NO.
ACCOUNT NAME
PAGE
YEAR
YEAR
a
b
c
d
e
EQUITY CAPITAL
201
Common Stock Issued _ _ _ _ _ _ _ _ _ _ _ _ _ _
F-14
$
$ 1
204
Preferred Stock Issued _ _ _ _ _ _ _ _ _ _ _ _
F-14
211
Other Paid —in Capital---------------
212
Discount on Capital Stock_ _ — _ — — _ _ _ _ _ _
213
Capital Stock Expense______________
214-215
Retained Earnings (Deficit)_ _ _ _ _ _ — -- — _ _
F-15
(582,863)
216
Reacquired Capital Stock_ _ _ _ _ _ _ _ _ _ _ _
218
Proprietary Capital (Proprietorship
and Partnership Only)_ _ _ _ _ _ _ _ _ _ _ _ _
Total Equity Capital (Deficit)_ _ _ _ _ _ _ _ _ _ _
(582,862)
LONG TERM DEBT
221
Bonds _
F-16
223
Advances from Associated Companies— _ _ _
F-16
885,306
224
Other Long Term Debt______________
F-14
Total Long Term Debt — — — — ————— — — — ———
885,306
CURRENT AND ACCRUED LIABILITIES
231
Accounts Payable_________________
3.456
232
Notes Payable — — — — — — — — ————— — — ————
F-13
233
Accounts Payable to Associated Co. _ — _ _ _ _
F-13
765,711
434,004
234
Notes Payable to Associated Co. _ _ _ _ — _ _ _
F-13
235
Customer Deposits — — — — — — — — ————— ———
19,770
236
Accrued Taxes -------------------
F-17
19,017
237
Accrued Interest ------------------
F-18
238
Accrued Dividends _
239
Matured Long Term Debt_ _ _ _ _ _ _ _ _ _ _ _ _
240
Matured Interest ------------------
241
Miscellaneous Current and Accrued
Liabilities
F-19
Total Current and Accrued
Liabilities
785,481
456,477
F— 2(a)
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31.1993
COMPARATIVE BALANCE SHEET — EQUITY CAPITAL AND LIABILITIES
ACCT.
REF.
CURRENT
PREVIOUS
NO.
ACCOUNT NAME
PAGE
YEAR
YEAR
a
b
c
d
e
DEFERRED CREDITS
251
Unamortized Premium on Debt _ _ _ _ _ _ _ _ _
F-12
$
252
Advances for Construction ------------
F-19
253
Other Deferred Credits--------------
255
Accumulated Deferred Investment
Tax Credits
Total Deferred Credits
OPERATING RESERVES
261
Property Insurance Reserve _ _ _ _ _ _ _ _
262
Injuries and Damages Reserve_ _ _ _ _ _ _ _ _ _
263
Pensions and Benefits Reserve
265
Miscellaneous Operating Reserves _ _ _ _ _ _
Total Operating Reserves
CONTRIBUTIONS IN AID OF CONSTRUCTION
271
Contributions in Aid of Construction _
F-20
768,099
222,968
272
Accumulated Amortization of Contributions in
Aid of Construction _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
F-21
(124,265)
(43,288)
Total Net C.I.A.C.
643,834
179,680
ACCUMULATED DEFERRED INCOME TAXES
281
Accumulated Deferred Income Taxes —
Accelerated Depreciation_ _ _ _ _ _ _ _ _ _ _ _
282
Accumulated Deferred Income Taxes —
Liberalized Depreciation _ _ _ _ _ _ _ _
283
Accumulated Deferred Income Taxes —
Other
Total Accum. Deferred Income Taxes
TOTAL EQUITY CAPITAL AND LIABILITIES
$ 1,429,315
$ 938.601
F-2(b)
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. [-December 31.1993
COMPARATIVE OPERATING INCOME
PLa
ACCOUNT NAME
b
PREVIOUS
YEAR
c
REF.
PAGE
d
CURRENT
YEAR
e
UTILITY OPERATING INCOME
400
Operating Revenues ----------------
$ 422,606
F-3(b)
$ 443,772
401
403
Operating Expenses_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Depreciation Expense_ _ _ _ _ — _ — _ _
241,158
F-3(b)
F-6
323,748
51,198
66,324
406
Amortization of Utility Plant Acquisition
Adjustment — — — — — — — — — — — — — — — — — — — —
407
408.1
409.1
Amortization Expense_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Taxes Other Than Income_ _ _ _ — _ — _ — _ — _
Income Taxes___________________
F-17
F-17
41,528
33,256
410.10
Deferred Federal Income Taxes _ _ _ _ _ _ _ _ _
411.10
Provision for Deferred Income
Taxes — Credit -----------------
412.10
Investment Tax Credits Deferred
to Future Periods______________
412.11
Investment Tax Credits Restored
to Operating Income_ _ _ _ _ _ _ _ _ _ _ _ _ _
Utility Operating Expenses _ _ _ _ _ — _ — _ _ _ —
340,738
416,474
Utility Operating Income— — — -- — — — — — — — —
81,868
27,298
413
Income From Utility Plant Leased
To Others_______________
414
Gains (Losses) From Disposition
of Utility Property________________
Total Utility Operating Income [Enter here and
on Page F-3(c)]_
81,868
27,298
F-3(a)
COMPARATIVE OPERATING INCOME
REF.
—"' REF.
PAGE
OTHER
SEWER
PAGE
WATER
h
e
S-3
$ 443,772 $ N/A
W-3
$ N/A
S-2
323,748
W-2
F-6
51,198
F-6
F-6
F-6
F-17
41,528
F-17
F-17
F-17
416,474
27,298
$ 27,298 s NIA
$ N/A
F-3(b)
UTILITY NAME: Ocean Reef Club, Inc.
COMPARATIVE OPERATING INCOME (Cont'd)
YEAR OF REPORT
December 31,1993
ACCT.
PREVIOUS
REF.
CURRENT
NO.
ACCOUNT NAME
YEAR
PAGE
YEAR
a
b
c
d
e
Total Utility Operating Income (From
Page F-3(a)j...................
81,868
27,298
OTHER INCOME AND DEDUCTIONS
415
Revenues From Merchandising, Jobbing and
Contract Deductions
416
Costs and Expenses of Merchandising,
Jobbing and Contract Work_ _ _ _ _ _ _ _ _ _
419
Interest and Dividend Income----------
420
Allowance for Funds Used During
Construction_____________
421
Nonutility Income _ _ _ _ _ _ _ _ _ _ _
426
Miscellaneous Nonutility Expenses_ _ _ _ _ _ _
Total Other Income and Deductions
TAXES APPLICABLE TO OTHER INCOME
408.20
Taxes Other Than Income_ _ _ _ _ _ _ _ _ _ _ _
F-17
409.20
Income Taxes -------------------
F-17
410.20
Provision for Deferred Income Taxes_
411.20
Provision for Deferred Income
Taxes - Credit'
-----------------
412.20
Investment Tax Credits - Net----------
412.30
Investment Tax Credits Restored
to Operating Income
Total Taxes Applicable to Other Income__
INTEREST EXPENSE
427
Interest Expense__________________
106,170
F-18
17,399
428
Amortization of Debt Discount & Expense_ _ _ _
F-12
429
Amortization of Premium on Debt
F-12
Total Interest Expense_ _ _ _ _ _ _ _ _ _ _ _ _ _
106,170
17,399
EXTRAORDINARY ITEMS
433
Extraordinary Income_ _ _ _ _ _ _ _ _ _ _ _ _ _
434
Extraordinary Deductions- _ _ _ _ _ _ _. _ _ _ _
409.30
Income Taxes, Extraordinary Items- _ _ _ _ _ _
Total Extraordinary Items- _ _ _ _
NET INCOME
$ (24,3021
$ 9,899.00
F-3(c)
-1
- . I
UTILITY NAME: Ocean Reef Club, Inc.
SCHEDULE OF YEAR END RATE BASE
YEAR OF REPORT
December 31.1993
ACCT.
NO.
a
ACCOUNT NAME
b
REF.
PAGE
c
WATER
UTILITY
d
SEWER
UTILITY
e
101
108.1
110.1
271
252
272
114
115
Utility Plant In Service________________
Less:
Nonused and Useful Plant (1)
Accumulated Depreciation_ — — _ _ _ _ _ _
Accumulated Amortization _ _ _ _
Contributions in Aid of Construction_ _ _ _
Advances for Construction
Subtotal
Additions:
Accumulated Amortization of Contributions
in Aid of Construction
Subtotal
Plus or Minus:
Acquisition Adjustments (2) _ _ _ — _ _ _ — _
Accumulated Amortization of Acquisition
Adjustments (2)_______________
Working Capital Allowance (3)_ _ _ _ _ _ _
Other (Specify)_
F-5
F—E
F-6
F-20
F-19
F-21
F-5
F-5
$ N/A
$ 2,021,276
591,961
768,099
661,216
124,265
785,481
40,469
$ 825,950
RATE BASE
UTILITY OPERATING INCOME
ACHIEVED RATE OF RETURN_ _ _ _ _ _ _ _ _ _ _
$
$
$ 27,298
-- %
3.31 %
NOTES:
(1) Estimated if not known.
(2) Include only those Acquisition Adjustments that have been approved by the Commission.
(3) Calculated using the 1/8th of 0 & M method.
F-4
UTILITY NAME: Ocean Reef Club, Inc.
UTILITY PLANT (ACCTS. 101 — 106)
YEAR OF REPORT
December 31.1993
OTHER THAN
ACCT.
REPORTING
NO.
DESCRIPTION
WATER
SEWER
SYSTEMS
TOTAL
a
b
c
d
e
Plant Accounts
101
Utility Plant In Service_ _ _ _
$ N/A
$ 2,021,276
$ N/A
$ 2,021,276
102.
Utility Plant Leased to
Others
103
Property Held for Future
Use
104
Utility Plant Purchased or
Sold_
105
Construction Work in
Progress
Total Utility Plant_ _ _ _ _ _ _
$
$ 2.0 11.276
$ N/A
$ 2,021,276
0
UTILITY PLANT ACQUISITION ADJUSTMENTS (ACCTS. 114 — 115)
Report each acquisition adjustment and related accumulated amortization separately. For any acquisition
ac;ustment approved by the Commission, include the Order Number.
DESCRIPTION
a
WATER
b
SEWER
c
OTHER THAN
REPORTING
SYSTEMS
d
TOTAL
e
ACQUISITION ADJUSTMENTS (114):
N/A
$
$
$
$
Total Plant Aquisition Adjs. _ _ _ _ _ _ _
ACCUMULATED AMORTIZATION (115)
N/A
Total Accumulated Amortization
Net Acquisition Adjustments_ _ _ _ _ _
$
$
$
$
F-5
YEAR OF REPORT
December 31.1993
UTILITY NAME: Ocean Reef Club, lnc. ACCT. 108)
ACCUMULATED DEPRECIATION
OTHER7HAN
REPORTING
WATER SEWER SYSTEMS
DESCRIPTION c d
a N/A $ 8--�57,033 $ N/A
TOTAL
(el
857,033
Balance first of year-----------
----
Credits during year:
78,108
Accruals charged:
78,108
-------- -
-
to Account 108-___-----
Accruals charged other accounts
-------
--
(specify)
_----
Salvage----------------
Other Credits (specify) ___-----
�— _____---
------- _-_
--------
___-----
�-
78,108
Total credits --- - - -
- -- --"--
78,108
______--
35,528
- - - --
Debits during year:
_
35,523
—
Book cost of plant retired- _ _ -
- - - --
___ __—
Cost of removal -___--------
----'--
�_
----
307,652
Other debits (specify) - - - - - -
- --------'
3_ 07,652
___---
-.
930436—SU
PSC Ad' Per Docket No. —_______--
343,180
debits - - - -
_
- -- -�-
3 43_180_
_----
591 961
Total - - -----
$
51 96
IA $
N--__ --
N A
--
Balance end of year __---------
----
ACCUMULATED AMORTIZATION (ACCT.
110)
OTHER THAN
REPORTING
TOTAL
WATER
SEWER
SYSTEMS
d
e
DESCRIPTION
b
c)
$ N_ A 5
a
A
$ N/ A 5
N/A
Balance first of year_ - _-- - -
- - -- ---
Credits during year:
Accruals charged:
---
to Account 110-_-------
charged other
--------
__----
Accruals
accounts (specify)-__----
-----
�
Total credits - - - - - - - - -
- - - - - ---
Debits during year -
cost of plant retired - -
- - - -- -----
--------
___---
Book
Book
Other debits (specify)-_-------
----
-----
Total debits--------------
----
� NN/A �
-
�_ N/_
$
5
Balance end of year --__-------
F-6
UTILITY NAME: Ocean Reef Club, Inc.
NONUTILITY PROPERTY (ACCT 121)
YEAR OF REPORT
December 31.1993
Report separately each item of property with a book cost of $25,000 or more included in Account 121. Other
items may be grouped by classes of pro ertv.
DESCRIPTION
a
BEGINNING
YEAR
BALANCE
b
ADDITIONS
c
REDUCTIONS
d
ENDING
YEAR
BALANCE
e
N/A
$
$
$
$
$
$
Total Nonutility Property_ _ _ _
$
$
SPECIAL DEPOSITS (ACCTS. 132 — 133)
Report hereunder all special deposits carried in Accounts 132 and 133.
DESCRIPTION OF SPECIAL DEPOSITS
a
SPECIAL DEPOSITS (ACCT. 132):
N/A
Total Special Deposits_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ a $
YEAR END
BOOK COST
F-7
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31.1993
INVESTMENTS AND SPECIAL FUNDS (ACCTS. 123 — 127)
Report hereunder all investments and special funds carried in Accounts 123 thru 127.
FACE OR YEAR END
DESCRIPTION OF SECURITY OR SPECIAL FUND PAR VALUE BOOK COST
a b c)
INVESTMENT IN ASSOCIATED COMPANIES (ACCT. 123):
N/A $ $
Total Investment In Associated Companies_ _ _ _ _ _ _ _ __ _ _ _ _ $
UTILITY INVESTMENTS (ACCT. 124):
N/A $ �
Total Utility Investments _ _ _ $
OTHER INVESTMENTS (ACCT. 125):
N/A $ $
Total Other Investments — — — — _ _ _ — _ $
SPECIAL FUNDS (ACCTS. 126 & 127)
N/A $
Total Special Funds-------------------------------------- $
F-8
-1
-1
G
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31.1993
ACCOUNTS AND NOTES RECEIVABLE — NET (ACCTS. 141 — 144)
Report hereunder all accounts and notes receivable included in Accounts 141, 142 and 144. Amounts
included in Accounts 142 and 144 should be listed individualiv.
DESCRIPTION
(a)
ACCOUNTS RECEIVABLE:
Customer Accounts Receivable (Acct. 141):
Water-------------------------- N/A------- $
Sewer
Other
-----------------------------------
Total Customer Accounts Receivable
----------------------------
OTHER ACCOUNTS RECEIVABLE (Acct. 142): 1
Total Other Accounts Receivable
------------------------------
NOTES RECEIVABLE (Acct. 144):
Total Notes Receivable
-----------------------------------
Total Accounts and Notes Receivable
--------------------------------
ACCUMULATED PROVISION FOR UNCOLLECTABLE ACCOUNTS (Acct. 143):
Balance First of Year _ _ N/A _ _ _ $
Add: Provision for uncollectables for current year _ _ _ _ _ _ _ _ _ _ _
Collections of accounts previously written off
-------- - - - - --
Utility accounts
Others-- — — — — — — — — — — — — — — — — — — — — — - — — — ——
Total Additions
---------------------------------
Deduct accounts written off during year:
Utility accounts
-----------------------------
Others
Total accounts written off I
Balance end of year —_______—_
Total Accounts and Notes Receivable — Net _______________ $
TOTAL
F-9
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club Inc. December 31,1993
ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES (ACCT. 145)
Report each account receivable from associated companies separately.
DESCRIPTION
(a)
N/A
Total------------------------------------------ - - - - I$
NOTES RECEIVABLE FROM ASSOCIATED COMPANIES (ACCT. 146)
TOTAL
Report each note receivable from associated companies separately.
DESCRIPTION
a
INTEREST
RATE
b
TOTAL
c
N/A
$
Total
$
UTILITY NAME: Ocean Reef Club, Inc.
PREPAYMENTS (ACCT. 162)
DESCRIPTION
(a)
YEAR OF REPORT
December 31 1993
TOTAL
Prepaid Insurance______________________________ N/A______ $
Prepaid Rents --------------------------------------
Prepaid Interest
----------------------------------------
Prepaid Taxes
--——————————————————————————————————————
Other Prepayments (Specify):
Total Prepayments___________________________ I $
MISCELLANEOUS DEFERRED DEBITS (ACCT. 186):
DESCRIPTION
(a)
TOTAL
(b)
MISCELLANEOUS DEFERRED DEBITS (Acct. 186):
Deferred Rate Case Expense (Acct. 186.1) _ _ _ _ N/A_ _ _ _ _ _ $
------------
Other Deferred Debits (Acct 186.2)
Total Miscellaneous Deferred Debits $
F-11
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31.1993
UNAMORTIZED DEBT DISCOUNT AND EXPENSE AND PREMIUM ON DEBT (ACCTS. 181 AND 251)
Report the net disount and expense or premium separately for each security issue.
DESCRIPTION
a
AMOUNT
WRITTEN OFF
DURING YEAR
b
YEAR END
BALANCE
c
UNAMORTIZED DEBT DISCOUNT AND EXPENSE (Acct. 181):
N/A
$
$
$
Total Unamortized Debt Discount and Expense _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
$
UNAMORTIZED PREMIUM ON DEBT (Acct. 251):
N/A
$
$
$
Total Unamortized Premium on Debt _______________________
$
EXTRAORDINARY PROPERTY LOSSES (ACCT. 182)
Repot each item separately.
DESCRIPTION
a)
EXTRAORDINARY PROPERTY LOSSES (Acct. 182):
N/A
TOTAL
(b)
ITotal Extraordinary Property Losses __________________________________I $
F-12
ei
UTILITY NAME: Ocean Reef Club, Inc.
NOTES PAYABLE (ACCTS. 232 AND 234)
YEAR OF REPORT .
December 31,1993
NOMINAL
DATE
INTEREST
PRINCIPAL
FREQUENCY
DATE OF
OF
AMOUNT PER
DESCRIPTION
ISSUE
MATURITY
RATE
OF PAYMENT
BALANCE SHEET
a
b
c
d
e
ACCOUNT 232 — NOTES
PAYABLE:
N/A
%
$
Total Account 232
$
ACCOUNT 234 — NOTES
PAYABLE TO ASSOCIATED
COMPANIES:
N/A
%
°
$
Total Account 234
$
ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES (ACCT. 233)
Report each account payable separately.
DESCRIPTION TOTAL
(a) (b)
Inter —company account payable to Ocean Reef Club, Inc. for plant acquisition and utility $
operating expenses 765,711
Total ___________$ 765,7
111
-------------------------------------- -
F-13
UTILITY NAME: Ocean Reef Club Inc.
CAPITAL STOCK (ACCTS. 201 and 204)
YEAR OF REPORT
December 31.1993
DESCRIPTION
a
COMMON
STOCK
(b)
PREFERRED
STOCK
(c
Par or stated value per share__________________________
Shares authorized _ _ _ _ _ _ _ _ _ _
Shares issued and outstanding
Total par value of stock issued (stated value) _ _ _ _ _ _ _ _ _ _ _ _ _
Dividends declared per share for year_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
$ N/A
$ N/A
$
$
$
$
LONG TERM DEBT (ACCT. 224)
DESCRIPTION OF OBLIGATION (INCLUDING NOMINAL
DATE OF ISSUE AND DATE OF MATURITY)
a
INTEREST
PRINCIPAL
AMOUNT PER
BALANCE SHEET
RATE
d
FREQUENCY
OF PAYMENT
e
N/A
%
o/
°
o/
0
O
O/
O
°IO
O/
O
O/
O
O/O
O/O
O/
O
%
O/
O
%
$
_
$
Total---------------------------------------------------
F-14
UTILITY NAME: Ocean Reef Club, Inc.
STATEMENT OF RETAINED EARNINGS
YEAR OF REPORT
December 31,1993
1. Dividends should be shown for each class and series of capital stock.
Show amounts of dividends per share.
2. Show separately the state and federal income tax effect of items shown in
Account No. 439.
ACCT.
NO.
DESCRIPTION
AMOUNTS
a
b
c)
215
Unappropriated Retained Earnings:
Balance beginning of year (Deficit) — — — — —————————— ————— —— —————
$ (582,863)
Changes to account:
439
Adjustments to Retained Earnings (requires
Commission approval prior to use):
Credits: Retained Earnings closed pursuant to sale of Utility. Utility is an
operating division of the new entity
582,863
Total Credits -------------------------------------
582,863
Debits:
Total Debits ------------------------------------ --
435
Balance transferred from Income ---------------------------
436
Appropriations of Retained Earnings:
Total appropriations of Retained Earnings — — — — — — — — —_------ - - - - - -
Dividends declared:
437
Preferred stock dividends declared
438
Common stock dividends declared
Total Dividends Declared
Balance end of year ---_ ---------------------------------
214
Appropriated Retained Earnings (state balance and purpose of
each appropriated amount at year end):
Total Appropriated Retained Earnings -----------------------_—
Total Retained Earnings----------------------------------
$
Notes to Statement of Retained Earnings:
KIM
t- — l 5
UTILITY NAME: Ocean Reef Club, Inc.
BONDS (ACCT. 221)
DESCRIPTION OF OBLIGATION (INCLUDING NOMINAL
DATE OF ISSUE AND DATE OF MATURITY)
a
N/A
YEAR OF REPORT
December 31,1993
INTEREST PRINCIPAL
FREQUENCY AMOUNT PER
RATE OF PAYMENT BALANCE SHEET
(bl I (c) (d)
°
%
Total--------------------------------------------------- $
ADVANCES FROM ASSOCIATED COMPANIES (ACCT. 223)
Report each account payable separately.
DESCRIPTION TOTAL
(a) b
Total $ NONE
F-16
UTILITY NAME: Ocean Reef Club, Inc.
ACCRUED TAXES (ACCT. 236)
YEAR OF REPORT
December 31.1993
ACCT.
NO.
a
DESCRIPTION
b
Balance First of Year _ _ _ _ _ _
WATER
c
$ N/A
SEWER
d
$ 19,017
OTHER
e
$ N/A
TOTAL
$ 19,017
Accruals Charged:
408.10
408.11
408.12
Utility Regulatory
Assessment Fees
Property Taxes_ _ _ _ _ _ _ _
Payroll Taxes _ _ _
19,970
14,236
7,322
19,970
14,236
71322
408.13
Other Taxes & Licenses_ _ _
409.10
Federal Income Taxes_ _ _ _
409.11
State Income Taxes _ _ _
Taxes Applicable to Other
Income (Accts. 408.2,
409.2, 409.3, 410.2) _ _ _ _ _
Total Taxes Accrued
41.528
41,528
Taxes Paid During Year:
408.10
408.11
408.12
Utility Regulatory
Assessment Fees
Property Taxes_ _ _ _ _ _ _
Payroll Taxes
19,217
19,217
14,236
7,322
14,236
7,322
408.13
Other Taxes & Licenses_ _ _
409.10
Federal Income Taxes_ _ _ _
409.11
State Income Taxes _ _ _ _
Taxes Applicable to Other
Income (Accts. 408.2,
409.2, 409.3, 410.2) _ _ _ _ _
Total Taxes Paid
40,775
40,775
Balance End of Year _ _ _ _ _ _ _
$ N/A
$ 19.770
$ N/A
$ 19,770
F-17
UJ
Fi
UTILITY NAME: Ocean Reef Club, Inc.
ACCRUED INTEREST (ACCT. 237)
YEAR OF REPORT
December 31,1993
DESCRIPTION OF DEBT
a
BALANCE
BEGINNING
OF YEAR
b
INTEREST ACCRUED
DURING YEAR
INTEREST
PAID
DURING
YEAR
e
BALANCE
END OF
YEAR
ACCT.
DEBIT
c
AMOUNT
d
ACCOUNT NO. 237.1 —
ACCRUED INTEREST ON
LONG TERM DEBT:
N/A
$
$
$
$
17,399
Total Account No. 237.1
ACCOUNT NO. 237.2 —
ACCRUED INTEREST ON
OTHER LIABILITIES:
N/P Ocean Reef Club, Inc.
17,399
17,399
Total Account 237.2
Total Account 237
17,399
$
$ 17,399
$ 17.399
$ 0
REGULATORY COMMISSION EXPENSE — AMORTIZATION
OF RATE CASE EXPENSE (ACCTS. 666 and 766)
DESCRIPTION OF CASE (DOCKET NO.)
a
EXPENSE
INCURRED
DURING
YEAR
b
AMOUNT
TRANSFERRED
TO ACCT.
NO. 186.1
c
CHARGED OFF DURING
YEAR
ACCT.
d)
AMOUNT
e
N/A
$
$
$
$
Total -----------------------
$
$
-t
F-18
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club Inc. December31,1993
MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES (ACCT. 241)
BALANCE
DESCRIPTION END OF YEAR
a b
N/A $
Total Miscellaneous Current and Accrued Liabilities
ADVANCES FOR CONSTRUCTION (ACCT. 252)
NAME OF PAYOR
a
BALANCE
BEGINNING
OF YEAR
b
DEBITS
ACCT.
CREDITS
e
BALANCE
END OF
YEAR
DEBIT
c
AMOUNT
d
N/A
$
$
$
$
Total--------------
$
$
$
$
F-19
_E
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31.1993
CONTRIBUTIONS IN AID OF CONSTRUCTION (ACCT. 271)
W & S OTHER
THAN SYSTEM
DESCRIPTION
a
WATER
b
SEWER
c
REPORTING
d
TOTAL
e
Balance first of year_ _ _ _ _ _ _
$ N/A
$ 222,968
$ N/A
$ 222,968
Add credits during year:
Contributions received
from Capacity, Main
Extension and Customer
Connection Charges
(Schedule "A") _ _ _
545,131
545,131
Contributions received
from Developer or
Contractor Agreements in
cash or property
(Schedule "B") _ _ _ _ _ _ _
Total Credits
545,131
545,131
Less debits charged during
the year (All debits charged
during year must be
explained below)_ _ _ _ _ _ _ _
Total Contributions In Aid of
Construction _ _ _ _ _ _ _ _ _ _
$ NIA
$ 768,099
$ N/A
$ 768,099
Explain all debits charged to Account 271 below:
I
F-20
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. I December 31.1993
SCHEDULE 'A'
ADDITIONS TO CONTRIBUTIONS IN AID OF CONSTRUCTION RECEIVED FROM CAPACITY, MAIN
EXTENSION AND CUSTOMER CONNECTION CHARGES RECEIVED DURING THE YEAR
DESCRIPTION OF CHARGE
a
NUMBER OF
CONNECTIONS
b
CHARGE PER
CONNECTION
c
WATER
(d)
SEWER
(e
Adi Per PSC Docket No. 930436—SU $
Total Credits____________________________________
$
$ 545,131
$
$ 545,131
ACCUMULATED AMORTIZATION OF CONTRIBUTIONS IN AID OF CONSTRUCTION (ACCT. 272)
DESCRIPTION
a
WATER
b
SEWER
c
W & S OTHER
THAN SYSTEM
REPORTING
d)
TOTAL
e
Balance first of year_ _ — — _ _ _
Debits during year:
Accruals charged to Account
272_____________
Other debits (specify):
Adi Per PSC Docket No. 930436—SU
$ N/A
$ 43,288
$ N/A
$ 43,288
26,910
26,910
54,067
54,067
Total debits
Credits during year (specify):
80,977
80,977
Total Credits
Balance end of year........
$ N/A
$ N/A
$ 124.265
$ 124,265
F-21
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31,1993
SCHEDULE 'B"
ADDITIONS TO CONTRIBUTIONS IN AID OF CONSTRUCTION RECEIVED FROM ALL DEVELOPERS OR
CONTRACTORS AGREEMENTS FROM WHICH CASH OR PROPERTY WAS RECEIVED DURING THE YEAR
INDICATE
`CASH" OR
DESCRIPTION "PROPERTY' WATER SEWER
a b c d
N/A $ $
Total Credits------------------------------------ $ $
F-22
:g
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31.1993
REC
ONCILIATION OF REPORTED NET INCOME WITH TAXABLE INCOME FOR FEDERAL INCOME TAXES
(UTILITY OPERATIONS)
1. The reconciliation should include the same detail as furnished on schedule M — 1 of the federal income
tax return for the year. The reconciliation shall be submitted even though there is no taxable income for the year.
Descriptions should clearly indicate the nature of each reconciling amount and show the computation of all tax
accruals.
2. If the utility is a member of a group which files a consolidated federal tax return, reconcile reported net income
with taxable net income as if a separate return were to 0 filed, indicating intercompany amounts to be eliminated in
such consolidated return. State names of group members, tax assigned to each group member, and basis of
allocation, assignment. or sharing of the consolidated tax among rour) members.
DESCRIPTION REFERENCE AMOUNT
_ a b c
--- Net income for the year___________________________ __ � 9,899
Reconciling items for the year:
Taxable income not reported on the books:
Deductions recorded on books not deducted for return:
Income recorded on books not deducted for return:
Deduction on return not charged against book income:
Federal tax net income ______________________ _______
Computation of tax:
The Utility is a division of a non—profit corporation. Therefore,
no tax expense is applicable or will be paid.
$ 9,899
F-23
** COMPLETION OF SCHEDULE ONLY REQUIRED IF AFUDC WAS CHARGED DURING YEAR **
UTILITY NAME: Ocean Reef Club, Inc.
YEAR OF REPORT
December 31,1993
SCHEDULE 'A'
SCHEDULE OF COST OF CAPITAL USED FOR AFUDC CALCULATION (2)
PERCENTAGE
ACTUAL
WEIGHTED
DOLLAR
OF
COST
COST
CLASS OF CAPITAL
AMOUNT (1)
CAPITAL
RATES
[c x d]
a
b
c
d
e
Common Equity
$ N/A
%
%
%
Preferred Stock
%
%
%
Long Term Debt
%
%
%
Customer Deposits
%
%
Tax Credits — Zero Cost
%
%
%
Tax Credits — Weighted Cost
%
%
%
Deferred Income Taxes
%
%
%
Other (Explain)
%
%
%
Total
$ N/A
%
%
(1) Should equal amounts on Schedule 6, Column (f), page F-25.
(2) Must be calculated using the same methodology used to calculate AFUDC rate
approved by the Commission.
APPROVED AFUDC RATE
Current Commission approved AFUDC rate: %
Commission order approving AFUDC rate:
F-24
** COMPLETION OF SCHEDULE ONLY REQUIRED IF AFUDC WAS CHARGED DURING YEAR **
UTILITY NAME: Ocean Reef Club, Inc.
SCHEDULE 'B'
SCHEDULE OF CAPITAL STRUCTURE ADJUSTMENTS
YEAR OF REPORT
December 31,1993
CAPITAL
STRUCTURE
PER
USED FOR
BOOK
NON —UTILITY
NON—JURIS.
OTHER (1)
AFUDC
CLASS OF CAPITAL
BALANCE
ADJUSTMENTS
ADJUSTMENTS
ADJUSTMENTS
CALCULATION
a
b
c
d
e
Common Equity
$ N/A
$
$
$
$
Preferred Stock
Long Term Debt
Customer Deposits
Tax Credits — Zero Cost
Tax Credits — Weighted Cost
Deferred Income Taxes
Other (Explain)
Total
$ N/A
$
$
$
$
(1) Explain below all adjustments made in Column (e):
F-25
WATER
OPERATION
SECTION
Note: Ocean Reef Club, Inc. provides sewer service only; therefore, pages W-1
through W-10 have been omitted from this report.
SEWER
OPERATION
SECTION
YEAR OF REPOR
December 31.1993
UTILITY NAME: Ocean Reef Club, Inc.
SEWER UTILITY PLANT ACCOUNTS
ACCT.
PREVIOUS
YEAR
ADDITIONS RETIREMENTS
NO.
ACCOUNT NAME
d
e
a
b
c
351
Organization_______________ $
-
$ $
352
Franchises _ — _ _ _ _
-
353
Land and Land Rights — — — _ _ _ _ _ _
86 687
24,000
—
354
Structure and Improvements _ _ _ _ _ _
423
57 9,423
427,800
289,183 (1)
360
Collection Sewers — Force _ _ _ _ _ _ —
361
Collection Sewers — Gravity— _ — _ _ _
13,699
-
362
Special Collecting Structures _ — _ — —
363
Services to Customers_ _ _ — _ _ _ _ _
50,735
—
364
Flow Measuring Devices _ _ _ _ _ _ _
675
365
Flow Measuring Installations_ _ _ — — _
—
370
Receiving Wells_ _ _ _ _ _ _ _ _ _ _ _ _
3,048 1
( )
371
Pumping Equipment_ _ _ — _ _ _ _ _ _ _
Treatment and Disposal Equipment
537,63
531,634
27.502
27,502
380
381
__
Plant Sewers _ _ _ _ _
11,943
382
Outfall Sewer Lines — _ _ _ _ _ _ _
389
Other Plant and Miscellaneous
390
Equipment—__ --
Office Furniture and Equipment— _ _ _
4,019
10, 773
3,541
391
Transportation Equipment_ _ _ _ _ _ _
148
392
Stores Equipment — _ _ _ _ _ _ _ _ _ _
4,529 (2)
393
Tools, Shop and Garage Equipment__
394
Laboratory Equipment_ _ _ _ — _ _ — — _
395
Power Operated Equipment_ _ _ _ _ _
396
Communication Equipment_ — _ _ _ — _
33,467
(4,5291(2)
28,938
397
Miscellaneous Equipment— _ — _ _ _ _ _
398
Other Tangible Plant ---________
Total Sewer Plant____________
$ 1,769.036
$ 576,950_ $
324,710
NOTE:
Any adjustments made to reclassify property from one account to another must
be footnoted.
Notes: (1) Retirements and adjustments per
certificate transfer —Docket No. 930436—SU
(2) Reclassify to proper account
S-1 (a)
SEWER
UTILITY PLANT MATRIX
.2
.3
TREATMENT
SYSTEM
AND
CURRENT
INTANGIBLE
COLLECTION
PUMPING
�j�G
DISPOSAL
DISPOSAL
PLANT
GENERAL
PLANT
YEAR
PLANT
PLANT
PLANT
h
$
110,687
10-6 87
718,040.
718,040
13,699.
13,699
50,735
50,735
675
6 75
53433
534,433
565,136
565,136
11,943
11,943
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—1,
11,251
2 5-1
148
148
4,529
4,599
...... ....
..........
2,021,276
$
$ 783,149.
$ 534,433
687,766-
$ 15,928
I I
u
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31,1993
SEWER UTILITY EXPENSE ACCOUNTS
i
.2
COLLECTION
COLLECTION
ACCT.
NO.
a
ACCOUNT NAME
b
CURRENT
YEAR
c
EXPENSES —
OPERATIONS
d
EXPENSES —
MAINTENANCE
(e)
701
Salaries and Wages — Employees _
$ 65,670
$
$
703
Salaries and Wages — Officers,
Directors and Majority
Stockholders _
9,306
704
Employee Pensions and Benefits_ _
710
Purchased SewageTreatment
,440
20440
711
715
Sludge Removal Expense
Purchased Power_ _ _ _ _ _ _ _ _ _
<<
35,000
716
Fuel for Power Purchased_ _ _ _ _ _ _
�. ..........••.....:....•....
7,270
718
720
Chemicals________
Materials and Supplies_ _ _ _ _ _ _ _
2,438
3,480
731
Contractual Services — Engineering _
732
733
Contractual Services — Accounting_
Contractual Services — Legal _ _ _ _
8,786
2,001
734
Contractual Services —
Management Fees _ _ _ _ _ _ _ _ _
121,800
30,888
735
Contractual Services — Other_ — — _ _
—
741
Rental of Building/Real
Property—-------------
6,017
742
750
Rental of Equipment _ _ _ _ _ _ _ _ _
Transportation Expense _ _ _ _ — _ _
4,465
—
756
Insurance — Vehicle _
1,680
757
Insurance — General Liability _ _ _ _
758
Insurance — Workmens
Compensation --——— — — — — ——
1,440
759
Insurance — Other
760
766
Advertising Expense
Regulatory Commission Expenses
— Amortization of Rate Case
..::::..:.........:..............
767
Expense
Regulatory Commission Expenses
m
770
775
Other
Bad Debt Expense — — — — — — — — ——
Miscellaneous Expenses_ _ _ _ — _ _
s.,..,�.....,..�.,..�._.,.4
,._..<,...��'«�>.._�.........
3,067
Total Sewer Utility Expenses_ _ _ _ _
$ 323,748
$
$
S-2(a)
SEWER EXPENSE ACCOUNT MATRIX
.3
.4
.5
.7
.8
TREATMENT
TREATMENT
PUMPING
PUMPING
& DISPOSAL
& DISPOSAL
CUSTOMER
ADMINISTRATIVE
EXPENSES —
EXPENSES
EXPENSES —
EXPENSES —
ACCOUNTS
& GENERAL
OPERATIONS
MAINTENANCE
OPERATIONS
MAINTENANCE
EXPENSE
EXPENSES
32,835 1 $
ERMUM
limmimil
35,000
32,835 1 $
300 9,006
44-0
7,270
377
1,050
1,011
3,480
8,786
2,001
48,720
73,080
23,166
7,722
6,017
MENU ME=
2,250 817
67,835 $ $ 64,980= $ 38,350 $ �48 7Z—O $ 103,863
S-2(b)
UTILITY NAME: Ocean Reef Club, Inc.
SEWER OPERATING REVENUE
YEAR OF REPORT
December 31,1993
BEGINNING
YEAR END
ACCT.
YEAR NO.
NUMBER
NO.
DESCRIPTION
CUSTOMERS
CUSTOMERS
AMOUNTS
a
b
c
d
e
Operating Revenues:
Flat Rate Revenues:
521.1
Residential Revenues— — — _ _ _ _ — _ _ _
453
453
$ 140,205
521.2
Commercial Revenues----------
521.3
Industrial Revenues_
521.4
Revenues From Public Authorities — _ _
521.5
Multiple Family Dwelling Revenues_ _ _ _
521.6
Other Revenues
Total Flat Rate Revenues
453
453
140,205
Measured Revenues:
522.1
Residential Revenues-----------
522.2
Commercial Revenues_ _ _ _ _ _ _ _ _ —
37
37
123,521
522.3
Industrial Revenues_
522.4' '
Revenues From Public Authorities
180,046
522.5
Multiple Family Dwelling Revenues_ _ _
146
146
Total Measured Revenues
183
183
303,567
523
Revenues From Public Authorities
524
Revenues From Other Systems_ — _ _ _ _ _
525
Interdepartmental Revenues
Totals
636
636
443,772
Other Sewer Revenues:
530
Guarenleed Revenues
_ _ _ _ _ _ _
_ _ _ _ _ _ _ _
531
Sale of Sludge_______________________________________
532
Forfeited Discounts
__ ___________
534
Rents From Sewer Property_______________________________
535
Interdepartmental Rents_________ _______
______
____ _
536
Other Sewer Revenues
_____ _____
____ _
Total Other Sewer Revenues
Total Sewer Operating Revenues____________________________
$ 443,772
S-3
UTILITY NAME: Ocean Reef Club, Inc.
BASIS FOR SEWER DEPRECIATION CHARGES
YEAR OF REPORT
December 31,1993
ACCT.
NO.
a
ACCOUNT NAME
b
AVERAGE
SERVICE
LIFE IN
YEARS
c
AVERAGE
NET
SALVAGE IN
PERCENT
d
DEPRECIATION
RATE APPLIED
IN PERCENT
(100% — d) / c
351
352
354
360
361
362
363
364
365
370
371
380
381
382
389
390
391
392
393
394
395
396
397
398
Organization_ _ _ _ _ _ _ _ _ _ _ _ _ _
Franchises _mprov_ — _ _ _ _
Structure and Iements _ _ _ — _ _ —
Collection Sewers — Force _ _ _ _ _
Collection Sewers — Gravity _ _ — _ — _ _
Special Collecting Structures
Services to Customers
Flow Measuring Devices _ _ — — _ — _ _ _
Flow Measuring Installations
Receiving Wells_ _ _ _ _ _ _ _ _ _ _ _
Pumping Equipment_ — _ _ _ _ _ _ — _
Treatment and Disposal Equipment ....
Plant Sewers _ _ _ _
Outfall Sewer Lines _ _ _ _ _ _
Other Plant and Miscellaneous
Equipment_______ ________
Office Furniture and Equipment.......
Transportation Equipment_ _ _ _ _ _ _ _ _
Stores Equipment _ _ _ _ _ _ _ _ _ _ _
Tools, Shop and Garage Equipment_ _ _ _
Laboratory Equipment_ — _ _ _ _ _
Power Operated Equipment_ _ _ _ _ _ _ _
Communication Equipment_ _ _ _ _ _ _ _ _
Miscellaneous Equipment_ _
Other Tangible Plant
Sewer Plant Composite
Depreciation Rate_ _ — _ _ — _ _ _
%
%
%
%
°
%
3.13 %
3.33 %
3.33 %
%
2.63 %
20.00 %
%
%
5.56 %
5.56 %
2.86 %
%
%
6.67 %
16.67 %
%
6.25 %
%
%
%
6.25 %
%
32
30
30
%
38
%
5
°a
%
%
18
18
%
35
%
%
15
°
%
6
%
%
16
%
%
%
16
%
* If depreciation rates prescribed by this Commission are on a total composite basis, entries
should be made on this line only.
S-4
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31.1993
ANALYSIS OF ENTRIES IN SEWER ACCUMULATED DEPRECIATION
BALANCE
AT TOTAL
ACCT. BEGINNING OTHER CREDITS
NO, ACCOUNT NAME OF YEAR ACCRUALS CREDITS * (d + e)
a b c d e
351
Organization_ _ _ _ _ — _ _ — _ _ _
$
$
$
$
352
354
Franchises ______________
Structure and Improvements
20,321
2,709
2,709
360
_ _ _ _ _
Collection Sewers — Force _ _ _ _ _ _
297,990
19,314
19,314
457
361
Collection Sewers —Gravity_ _ _ _ _
1,608
457
362
Special Collecting Structures _ _ _ _
1,335
363
Services to Customers __ _
8,102
1,335
0
364
Flow Measuring Devices _ _ _ _
675
365
Flow Measuring Installations__
370
371
Receiving Wells ________--__
Pumping Equipment_ _ _ _ _ _
151,336
24,228
24,228
V
380
_ _ _ _
Treatment and Disposal Equipment
338,769
29,418
29,418
381
_
Plant Sewers _ _
2,560
341
341
'
382
Outfall Sewer Lines _ _
389
_ _ _ _ _ _
Other Plant and Miscellaneous
390
Equipment_____ _ _____
Office Furniture and Equipment___
3,863
109
10
•
391
Transportation Equipment_ _ _ _
149
0
0
392
Stores Equipment _ _ _ _ _ _ _ _ _
197
197
393
Tools, Shop and Garage Equipment_
394
395
Laboratory Equipment_ _ _ _ _ _ _ _ _
Power Operated Equipment_ _ _ _ _
_
396
Communication Equipment_ _ _ _ _ _
0
397
Miscellaneous Equipment_ _ _ _ _ _ _
31,660
398
Other Tangible Plant_ _ _ _ _ _ _ _ _ _
Total Depreciable Sewer Plant
$
$ 78,108
In Service_________
857,033
$
$ 78,108
* Specify nature of transaction.
Use ( ) to denote reversal entries.
Note (1): Adjustments per certificate transfer — Docket No. 930436—SU
S-5(a)
-E
-E
t
ANALYSIS OF ENTRIES IN SEWER ACCUMULATED DEPRECIATION (Cont'd)
PLANT
RETIRED
ASSOCIATED
SALVAGE
AND
INSURANCE
h
ASSOCIATED
COST
OF
REMOVAL
i
OTHER
CHARGES
TOTAL
CHARGES
(g—h+i+j)
(k)I
BALANCE
AT END
OF YEAR
(c+f—k)
(1,739)(1)
1,742 (1)
(200,832)(1)
(1,739)
21,291
(199,090)
118,214
(292) (1)
(292)
1,773
(854) (1)
(854)
8"583
675
160,707
274,609
(3,048)
(11,809)(1)
(93,578) (1)
(219) (1)
(14,857)
(93,578)
(219)
2,682
(3,496)
(3,541)
45 (1)
476
(1)(1)
(1)
148
2,803
2,606 (1)
2,606
(28,939)
$_(236 3601
(021) (1)
(31,660)
0
$
$
$ (106,8201
$_ 343 180
$ 591,961
S-5(b)
_t
I
E
UTILITY NAME: Ocean Reef Club, Inc.
SYSTEM NAME: Same
PUMPING EQUIPMENT
YEAR OF REPORT
December 31.1993
Lift station number___
Make or type and nameplate
data of pump 2 idontical
litt
A-1
EMU
FA80-421.1
E-1
E III
Simplex
Unit (a)
FC—!
CC-1
Simplex
N/A
Flyght
CP-3127
EMU
FA81 —130
Gorman Rupp
T3A3-6
N/A
pumps per station
461
Year installed
Rated capacity _ _(GPM) ......
Size --------------
Power:
Electric_ _ _ _ _ _ _ _ _ _
Mechanical
Nameplate data of motor _ _
1985
1981
1974
1984
1980
1978
210
4"
55
55
250
170
10
4"
4"
4"
230V-30A
230V-30A
230V-30A
230V-30A
230V-30A
230V-1OA
N/A
FK202-4/9
N/A
F13.2-4/9
7.5 HP
10 HP
1.6 HP
5 HP
Lift station number _ _ _ _ _
Make or type and nameplate
data of pump 2 identical
lift station
CHP-1
Flyght
CP3126—
460,
1971
MV-1
FV-1
FL-1
FL-2
HC-1
Flyght
Myers
Flyght
Flyght
CP3085—
Flyght
CG3065—
4V
CP3101 —
CP3127-
pumps per
206
432
440
483
Year lnstalled ---------
Rated capacity _ _(GPM) .......
Size --------------
Power:
Electric_ _ _ _ _ _ _ _ _ _
Mechanical
Nameplate data of motor__
1978
1983
1978
1978
1985
200
180
125
100
100
4"
300
4"
3"
4"
4"
4"
230V-30A
230V-10A
230V-30A
230V-10A
230V-10A
230V-30A
9.4 HP
1.9 HP
i HP
3.8 HP
1.15 HP
10 HP
SERVICE CONNECTIONS
Size (inches) _ _ _ _ _ — _ — _
Type (PVC, VCP, etc)_ _ _ _
Average length — _ _ _ _ — _
Number of active service
connections
Beginning of year_ _ _ _ _ _
Added during year_ _ _ _ _ _
Retired during year_ _ _ _ _
End of year —____—____
Give full particulars
concerning inactive
connections
4"
PVC
25'
449
449
6°
6°
PVC
CI
25'
25
204
2
204
2
449
204
2
None
19
None
New
Development
i
S-6(a)
0
UTILITY NAME: Ocean Reef Club, Inc.
SYSTEM NAME: Same
PUMPING EQUIPMENT
YEAR OF REPORT
December 31,1993
Lift station number_—_
Make or type and nameplate
data of pump 2 identical
lift
HC-2
Flyght
CA3065—
206
1976
HC-3
HC-4
GV-1
HH-1
Flyght_
PC-1
Flyght
Flyght
Flyght
Flyght
CP3101 —
CA3065—
CP3101 —
CP3101 —
CP3126-
pumps per station
206
432
433
435
460
Year installed _ _ _ _ _ _ _ _
Rated capacity _ (GPM)_ _
Size
Power:
Electric_ _ _ _ _ _ _ _ _ _
Mechanical
Nameplate data of motor _ _
1976
1976
1978
1978
1974
100
100
200
100
100
250
3"
4"
4"
4"
4"
230V-30A
230V-10A
230V-10A
230V-10A
23OV-10A
230V-30A
9.4 HP
1.9HP
1.9 HP
3.8HP
3.8HP
5HP
Lift station number _
Make or type and nameplate
data of pump 2 identical
lift station
SC-1
SMU
FA-101 —
155
1981
S-1
SP-1
SP-2
V-1
MI-1
Myers
Flyght _
Fly_ hg t _
Flyght
Flyght _
WG-50
CP3101 —
CG3065—
C03126—
C03065-
pumps per
432
206
460
206
Year installed _ _ _
Rated capacity _ _(GPNI)_ _
Size --------------
Power:
Electric_ _ _ _ _ _ _ _ _ _
Mechanical _
Nameplate data of motor _ _
1983
1975
1975
1974
1978
130
125
100
100
200
180
4"
2.5"
4"
4"
4"
3"
230V-10A
230V-30A
230V-10A
23OV-10A
230V-30A
230V-10A
FN17-1-4/8
3.8 HP
32. HP
5 HP
1.9 HP
9.4 HP
1.9 HP
Litt station number _ _
Make or type and nameplate
data of pump 2 identical
lift station
VH-1
Flyqht
CP3126—
461
1983
BI-1
FL-1
Flyght
Flvqht
CP3082—
CP3082-
pumps per
634
634
Year installed_ _ _ _ _ _ _
Rated capacity _ _(GPM)_ _
Size--------------
Power:
Electric_ _ _ _ _ _ _ _ — _
Mechanical
Nameplate data of motor
1974
1988
200
150
150
4"
4„
230V-30A
23OV-30A
230V-30A
1 HP
9.4 HP
1 HP
S-6(b)
0
11
YEAR OF REPORT
UTILITY NAME: Ocean Reef Club, Inc. December 31.1993
SYSTEM NAME: Same
COLLECTING MAINS
COLLECTING MAINS:
Size (inches)_ _ _ _ _ _ _
Type of main _ _ _ _ _ _ _ _
Length of main (nearest foot):
Beginning of year -------
Added during year......
Retired during year_____
End of year_ _ _ _ _ _ — — _ _
8"
10"
8"
8"
6"
6"
PVC
PVC
CI
VCP
Cl—
PVC
50'
25'
25'
25'
30'
54,266
2,575
300
1,659
920
4,320
54,266
2,575
300
1,659
920
4,320
MANHOLES: I I l
Size (inches)_
Type_______________
Number:
Beginning of year_ _ _ _ _ _
Added during year_ _ _ _ _ _
Retired during year_____
End of year _______—_
Concrete
255
255
FORCE MAINS
FORCE MAINS:
Size (inches)_ _ _ _ _ _ _
Type of main _ —_
Length of main (nearest foot):
Beginning of year_ _ _ _ _ _
Added during year —____—
Retired during year_____
End of year ___—___—__
6"
4"
4"
Cl
41190
6"
Cl
PVC
PVC
910
10,890
16,134
910
10,890
4,190
16,134
S-7
UTILITY NAME: Ocean Reef Club, Inc.
SYSTEM NAME:Same
TREATMENT PLANT
YEAR OF REPORT
December 31,1993
Manufacturer_ _ _ _ _ _
Type_ _'_ _ _ _ _ _ _ _
"Steel" or "Concrete"_ _
Total Capacity_____
Average Daily Flow_ _
Effluent Disposal
Total Gallons of
Sewage Treated_
(1)
Marolf
(2)
Davco
(3)
Davco
Contact Stabilization
Extended Air
Extended Air
Concrete
Steel
Steel
.250 MGD
.100 MGD
.100 MGD
Totals for all three plants:
274,457
Bore Holes
Bore Holes
Bore Holes
Totals for all three plants:
100,177,000
MASTER LIFT STATION PUMPS
i i,,14 14 - - C-a/�1 � A ¢-l;fh1
Manufacturer__
Capacity.........
Motor: Mir. __
Horsepower__
Power (Electric or
Mechanical) _ _ _ _
OTHER SEWER SYSTEM INFORMATION
OTHER SEWER SYSTEM INFORMATION
Furnish information below for each system not physically connected with another facility. A separate page
should be sun lied where necessary.
1.
Maximum number of ERC's * which can be served. 998
2.
Estimated annual increase in ERC's * . 24
3.
List permit numbers required by Chapter 14-17, Rules of the Department of Environmental
Regulation (DER) for systems in operation. D044-127102
4.
State any plans and estimated completion dates for any enlargements of this system. Plant No. 3
expansion and modification _
5.
If the present systems do not meet the requirements of Chapter 17-4, Rules of the DER, submit the following
a. Exaluation of the present plant or plants in regard to meeting the DER's rules.
b. Plans for funding and construction of the required upgrading.
c. Have these plans been coordinated with the DER? N/A
d. Do they concur?
e. When will construction begin?
6.
In what percent of your certificated area have service connections been installed' 90
* ERC = (Total Gallons Treated / 365 Days) / 275 Gallons Per Day
Note: Total Gallons Treated includes both sewage treated and purchased sewage treatment.
S-8
FDecernberEAR OF REPURT�
UTILITY NAME: Ocean Reef Club, Inc. 31.1993
SYSTEM NAME: Same
CALCULATON OF THE SEWER SYSTEMS EQUIVALENT RESIDENTIAL UNITS
METER
SIZE
a
TYPE OF
METER
b
EQUIVALENT
FACTOR
(c)
NUMBER
OF
METERS
(d)
TOTAL NUMBER
OF METER
EQUIVALENTS
(c x d)
(e
5/8"
3/4"
V.
1
1 1/2"
2"
31.
3"
3"
4^
4"
6-1
6°
8..
8.1
101,
10"
12"
Displacement
Displacement
Displacement
Displacement or Turbine
Displacement, Compound
or Turbine
Displacement
Compound
Turbine
Displacement or
Compound
Turbine
Displacement or
Compound
Turbine
Compound
Turbine
Compound
Turbine
Turbine
1.0
1.5
2.5
5.0
8.0
15.0
16.0
17.5
25.0
30.0
50.0
62.5
80.0
90.0
115.0
145.0
215.0
467
467
94
235
53
265
22
176
1,143
Total SEWER System
Meter Equivalents
_ _ _ _ _ _
CALCULATION OF THE SEWER SYSTEMS EQUIVALENT RESIDENTIAL CONNECTIONS
( 100,177,000 / 365 days) / 275 gpd = 998
(total gallons treated)
IJ,
S-9
do
EXHIBIT "F"
PUBLIC SERVICE COMMISSION ANNUAL REPORT
IN LIEU OF FINANCIAL STATEMENT
Counties commonly request audited financial statements from the
Industrial Development Revenue Bond Applicant. For the reasons out-
lined herein, we request that the County accept Florida Public
Service Commission (PSC) Annual Reports for the Applicant's
predecessor, Ocean Reef Club, Inc. in lieu of audited financial
statements, based on its unique position as a regulated utility in
the State of Florida.
The rules of the PSC require filing of an annual report which
details the financial position of the Utility. This information may
or may not be obtained in accordance with generally accepted
auditing standards. However, due 'to the nature of regulated
utilities, this information will not be presented in accordance with
generally accepted accounting principles. Treatment of contribu-
tions -in -aid -of -construction, amortization of such contributions,
methods of depreciation and determinations of used and useful
portions of plant are examples of considerations which may be unique
to utility financing. This in no way reflects negatively on the
financial integrity of the Utility, but is simply a recognition on
the part of the PSC that the information necessary to regulate
utilities is, in some respects, different from that of other
businesses, and accounting procedures must be adapted accordingly.
At this time, the Applicant would be required to expend
significant sums of money to hire accountants to go back and audit
the Utility for the past three years to put together conventional,
audited financial statements for that period. Access to records
necessary for such reporting may not be available from third
parties. The County is concerned that it be provided with every
assurance of the integrity of the Utility and the fact that it has
been operated in an efficient manner in the past. However, we
suggest that the methods used by the PSC in obtaining such assur-
ances, which include submission of annual reports and unaudited
financial statements for use during rate cases, are of a quality
which also assure the County that such utilities are prudently
operated. Indeed, financial statements generated in accordance with
generally accepted accounting principles, due to the peculiarities
of regulated utilities, may be more misleading than reference to
this other financial information.
In the past, the Systems Annual Reports have been compiled by
Cronin, Jackson, Nixon & Wilson, certified public accounts of
Clearwater, Florida. We understand the responsibility of the County
to protect all parties in the issuance of an Industrial Development
Revenue Bond. It is the desire of the Applicant to work closely
�1 with the County staff to provide such assurance.
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