Fletcher Properties, Inc. v. Florida Public Service Commission, 52157

• Citation: 356 So.2d 289
• Decision Date: 23 February 1978
• Docket Number: No. 52157,52157
• Parties: FLETCHER PROPERTIES, INC., etc., Petitioner, v. FLORIDA PUBLIC SERVICE COMMISSION, Respondent.
• Court: Florida Supreme Court

Page 289

356 So.2d 289

FLETCHER PROPERTIES, INC., etc., Petitioner, v. FLORIDA PUBLIC SERVICE COMMISSION, Respondent.

No. 52157.

Supreme Court of Florida.

Feb. 23, 1978.

Kenneth F. Hoffman of Rogers, Towers, Bailey, Jones & Gay, Tallahassee, for petitioner.

Leon F. Olmstead and Raymond E. Vesterby of the Florida Public Service Commission, Tallahassee, for respondent.

KARL, Justice.

We have for review by petition for writ of certiorari a declaratory statement by the Public Service Commission.

Petitioner filed a petition for declaratory statement with the Florida Public Service Commission to determine the applicability of Chapter 367, Florida Statutes (1975), and Chapter 25-10, Florida Administrative Code, rules of the Public Service Commission, to petitioner and, more specifically, to determine whether petitioner constitutes a public utility. In its petition for declaratory statement, petitioner alleged:

"Fletcher Properties is managing agent for Baymeadows, a private residential community located in Southside Jacksonville, and is part owner of Baymeadows, as tenant in common, along with Centennial Equities Corporation and Baymeadows, Inc. This community is provided sewer and water service by Jacksonville Suburban Utility Corporation. (The community presently includes approximately 242 occupied condominiums, 826 rental apartments, and recreational facilities).

"By agreement with Jacksonville Suburban Utility Corporation water provided to Baymeadows is master metered, and Baymeadows (the owners) retain (sic) ownership of the lines and lift stations and perform maintenance.

"Billing for services has been by Jacksonville Suburban Utilities Corporation. In the past Baymeadows has recouped these costs from the various apartment complexes and condominium associations on an equal share basis.

"Baymeadows is also planning to begin a single family home subdivision. Jacksonville Suburban Utilities Corporation has approved service of this addition, but will not bill these customers direct, since it does not own the lines and the meters will be individually installed at each residence.

"It is possible that Baymeadows could read the meters but pay on a master meter basis to Suburban Utilities, and then recover the costs from the individuals.

"In any event, since Jacksonville Surburban (sic) Utilities is in fact a public utility providing the water and sewer services, with Baymeadows' pipes merely acting as conduits, and since payment for services is made to Jacksonville Suburban Utilities, with Baymeadows acting as a money collector, it would appear the Baymeadows is not a utility as defined at Section 367.021, Florida Statutes."

Additional information was requested by the Public Service Commission regarding how Fletcher Properties recoups the cost of water and sewer utility service from the various apartment complexes and condominium associations on an equal share basis, how Jacksonville Suburban Utilities bills for services it provides and how charges for water and/or sewer service to the future single-family home subdivision will be handled. Petitioner responded that Fletcher Properties recoups the cost of water and sewer utilities service from various apartment complexes and condominium associations on an equal share basis per occupied unit after an allocation of a flat $200.00 to the Tennis Club served by Fletcher; that Jacksonville Suburban Utilities bills Fletcher directly every three months for total consumption through a master meter located at the entrance to Baymeadows at their approved tariff rates from multiple dwellings; that as to the proposed single-family subdivision, Fletcher proposes to install individual residential meters on each home, although water will go through the master meter; and that if Jacksonville Suburban Utilities does not service the homes, Fletcher will have to read the meters itself and allocate usage to each homeowner at the same rate that Jacksonville Suburban bills Fletcher.

The Public Service Commission issued its declaratory statement on June 2, 1977, finding that the operations of petitioner in providing water and sewer utility service are within the definitions of a utility in Section 367.021, Florida Statutes (1975), and are not exempt under Section 367.022, Florida Statutes (1975). The Commission reasoned as follows:

"Chapter 367, Florida Statutes, is the 'Water and Sewer System Regulatory Law' (Section 367.011(1), F.S.). A 'utility' thereunder, 'means water or sewer utility and, except as provided in Section 367.022, includes every person, lessee, trustee or receiver owning, operating, managing, or controlling a system, or proposing construction of a system, who is providing, or proposes to provide, water or sewer service to the public for compensation.' (Section 367.021(3)).

"Exempt from regulation, insofar...