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Home My WebLink About15.a FYI GHW Audit Response Letter for CCUA -61.7 GRADY H. WILLIAMS,JR., LL.M. ATTORNEYS AT LAW, P.A. Grady H. Williams, Jr., LL.M.* "Master of Laws in Taxation Grady@FloridaElder.com 1 ATTORNEYS MAIN OFFICE MAILING ADDRESS JACKSONVILLE '4 —;9' 1543 Kingsley Avenue,Building 5 P.O.Box 1542 Tel:904-268-8170 Orange Park, FL 32073 Orange Park,FL 32067 Fr�tatePla ning -Aft P.O. Probate•ElderLaw Tel:904-264-8800 Fax:904-264-0155 www.FloridaElder.com October 16, 2023 via E-mail to ConfirmationsGNV@JMCo.com James Moore & Co., P.L. Certified Public Accountants Re: Clay County Utility Authority, an independent special district created and existing under Chapter 94-491, Laws of Florida, Special Acts of 1994 ("CCUA") Greetings: Pursuant to the request of Jeffrey S. Wesselman, CPA, Chief Financial Officer of CCUA, by letter dated September 22, 2023, that this firm furnish you with certain information in connection with your examination of the financial statements of CCUA for the fiscal year ended September 30, 2023, and also from the end of that period to the date of this letter, you are hereby advised as follows: This law firm served as outside general counsel to CCUA during its fiscal year which commenced on October 1, 2022, and ended on September 30, 2023, and also from the end of that period to the date of this letter. Such representation has included regular attendance of CCUA's Board of Supervisors meetings and certain committee meetings, regular conferences and day to day involvement with CCUA staff, and detailed representation on specific matters as requested and directed by CCUA's Board of Supervisors, Executive Director, and/or their or his designees. However, as this representation is typically in response to specific disputes, matters, and issues as directed by CCUA, and since CCUA also addresses other matters having legal ramifications at the staff level without this firm's direct involvement, or with the direct assistance of other legal counsel, there may exist other matters of a legal nature which would have a bearing on CCUA's financial condition about which our firm has not been consulted. I therefore am not in a position to determine whether CCUA must disclose or consider disclosure of unasserted possible claims or other matters outside of the scope of our prior and current representations of CCUA. As of September 30, 2023, and the subsequent time period up to the date of this letter, our firm has not represented CCUA on any matters of litigation nor on any unasserted claims against CCUA by third parties, except for the matters covered and disclosed on the attached Exhibit "A", which is hereby incorporated by reference, and as disclosed in this paragraph. Any additional detailed questions that you have regarding any of the various claims disclosed on attached Exhibit"A" should be referred to CCUA management, and they can involve me in any further response as needed. James Moore &Co., P.L. October 16, 2023 There being no matters specifically identified in CCUA's letter and upon which comment has been specifically requested, as contemplated by clauses (b) and(c) of paragraph 5 of the ABA Statement of Policy Regarding Lawyer's Responses to Auditor's Requests for Information, 31 Bus. Law 1709 (1976), as most recently amended, our firm is not separately commenting to you with respect to CCUA's contractually assumed obligations or unasserted possible claims or assessments which CCUA has not specifically identified,but rather will be guided by the immediately preceding paragraph of this letter. The information set forth herein is as of the date hereof, and our firm assumes no obligation to advise you of changes, whether or not deemed material, which may thereafter be brought to my attention. This letter is solely for your information in connection with your audit of the financial condition of CCUA and is not to be quoted or otherwise referred to in any financial statements of CCUA or related document, nor is it to be filed with or furnished to any governmental agency or other person, without the prior written consent of this firm. This response is limited by, and is given in accordance with,the ABA Statement of Policy. Without limiting the generality of the foregoing, the limitations set forth in the ABA Statement of Policy on the scope and use of this response (Paragraphs 2 and 7), as most recently amended, are specifically incorporated herein by reference. If, as a result of your own audit of the current fiscal year's books and records for CCUA, you independently become aware of any material unasserted claims or matters which, in your opinion, require additional response and analysis by this firm, or which otherwise require disclosure pursuant to the Statements of Financial Accounting Standards No. 5, as amended, you should immediately notify this firm of that fact in writing,providing specific reference to such matter(s), and requesting a supplemental response for the period covered as to the legal aspects of such matter(s). Any such supplemental response issued by this firm upon your request shall supersede and control over the terms of this response as to such matter(s) addressed therein. Thank you for your diligent and careful audit of the financial books and records of CCUA. We trust that this response will permit you to complete your audit submission for the immediate past fiscal year. Sincerely yours, /s/Grady H. Williams, Jr. [Authorized&Verified Digital Signature] Grady H. Williams, Jr., LL.M. Attorneys at Law,P.A. cc: Board of Supervisors, CCUA 2 James Moore &Co., P.L. October 16, 2023 Exhibit"A" to James Moore & Co., P.L. Audit Response Letter of October 16, 2023 1. Please see Clay County Utility Authority's Quarterly Claims and Liabilities Report from Stan Jurewicz, Risk& Safety Manager, to Jeremy D. Johnston, Executive Director, dated October 4, 2023, which is submitted with this audit response letter, and which is hereby incorporated by this reference. Please inquire of CCUA management for any additional details re these identified pending claims. 2. In August 2019, CCUA employee Richard Pino filed a written complaint against then CCUA Executive Director Tom Morris with CCUA HR Department. The general nature of the complaint was alleged nepotism, cronyism, harassment, and retaliation. That complaint was reviewed and addressed by the Personnel Committee for the CCUA, with follow up recommendations being made to the CCUA Board and Executive Director. Mr. Pino filed an EEOC claim against CCUA based generally on alleged harassment, discrimination, and hostile workplace. CCUA is being represented and defended by outside EEOC/Labor Law attorney Angelo M. Filippi of Kelley Kronenberg afilippi@kelleykronenberg.com. EEOC found against CCUA. CCUA disputed and disagreed with that finding and declined to negotiate a further resolution through EEOC with Mr. Pino. EEOC issued a 90-day right to sue letter on August 24, 2023. However, civil litigation has not been filed to date by Mr. Pino in connection with the foregoing. CCUA's standing outside Labor Law attorney Jeffrey Ludwig of Ludwig &Hulsey, email:jludwig@ludwiglaw.net, is also available to further advise CCUA management and HR Department on this claim. 3. As of September 30, 2023, CCUA was in a continuing AAA Mediation with its General Contractor, KBT, with regard to the construction of the expansion of CCUA's Administrative offices, parking, and supporting campus infrastructure. Based on current communications and proposals of all concerned, it is anticipated that the total amount of the ultimate agreed to net change order resulting from this matter shall be a $75.547.29 on a$4.7 Million total project, which should be finalized by October 30, 2023. CCUA is represented by Bachara Construction Law Group of Jacksonville, FL, in this matter, and if it is resolved as expected, no AAA Arbitration will be necessary to resolve this matter. The gist of the matter is that there were some changes and comments to the Architect's submitted civil and building plans to Clay County Building Department, which resulted in delay and additional costs to the overall project upon subsequent issuance of the required civil and building permits by the County. The project's timeline has been adjusted,but a final agreed to change order for additional costs and work is pending at this time. 4. The BBI/Westfield litigation with CCUA re Fleming Island WWTF Clarifier#IV was settled in lieu of trial for $400,000.00 paid to CCUA, with each of the parties bearing their own attorney's fees and costs. 5. The Beach/Smoot/DRMP litigation with CCUA re Spencer's WWTF Clarifier#III was settled in lieu of trial for $1,000,000.00 paid to CCUA,with each of the parties bearing their own attorney's fees and costs. 3 James Moore &Co., P.L. October 16, 2023 6. The Leopard and Wilson civil claims are pending in Circuit Court in Clay County, Florida, and may be resolved by jury trials prior to final resolution. CCUA has asserted, among other things, Act of God defense against these plaintiffs' liability claims for what can generally be categorized as Hurricane IRMA flooding claims. To date, CCUA's good faith efforts at settlement or mediation have been rejected by the plaintiffs. However, each plaintiff has reportedly sold their respective properties which were impacted by Hurricane IRMA since these claims were originally asserted, and that may impact the ultimate need for resolution by a jury trial on the plaintiffs' remaining alleged monetary claims. 4 Lvpr1 cat,,,,,, _ CLAY COUNTY UTILITY AUTHORITY \k!.� MEMORANDUM TO: Jeremy D. Johnston, P.E., MBA FROM: Kimberly Richardson, Chief Human Resources Officer DATE: October 4, 2023 RE: Quarterly Claims and Liabilities Report for 4th Quarter of FY 2022/2023 —July 1, 2023 through September 31, 2023 Package—CCUA Fleet Auto At-Fault Claims 07/01/2023-09/31/2023 Claim Claimant Date of Amount Description No. Loss No new claims Package — General Liability Claims 07/01/2023-09/31/2023 (Bodily Injury, Private Property Damage, etc.) Claim Claimant Date of Amount Description No. Loss Treon, Todd 2/26/2023 $0 Golf cart allegedly overturned on manhole cover. Treon, Anna 2/26/2023 $0 Golf cart allegedly overturned on manhole cover. Total $0 Package—CCUA Property Damage & Loss Claims 07/01/2023-09/31/2023 Claim CCUA Date of Claimant Description No. Department Loss No new claims Package — Professional Liability Claims 07/01/2023-09/31/2023 (Workplace Harassment, Discrimination, Employment Practices, etc.) Claim CCUA Date of Claimant Description No. Department Loss No new claims Worker's Compensation Claims 07/01/2023-09/31/2023 (Slip & Fall, Puncture, Strain, etc.) Claim CCUA Date of Amount Description No. Department Loss 419703 Wastewater 9/29/23 $0 Stepped on nail 418457 D&C 8/24/23 $1,051 Punctured hand using tool 417043 D&C 7/17/23 $0 Strained elbow using tool Total $1,051 Active Ongoing Litigation Claim Claimant Date of Status Description No. Loss 415311 Esposito 5/22/23 Insurance company Discrimination based on age and providing defense disability. under ROR. Right to Sue issued 9/21/23 416125 Chaffin 4/6/23 LOR received. No Auto Accident- IV struck rear of OV. notice. Minimal injuries. 416726 Kuhrt 2/12/23 Notice of Intent on BI—Tripped on water meter 5/23/23 411849 J Town 8/29/2023 Defense provided First Amendment claim Press under ROR. Claim is dormant. Continue to monitor. 410341 Lee 12/1/2022 Notice of Intent from Auto Accident- IV struck rear of OV. Claimant's attorney received 12/27/22. Monitoring for BI demand. 393598 Kenney 4/22/22 LOR received. Auto Accident—IV struck OV Insurance company is managing claim. 383896 Griffin 8/5/21 Uninsured Motorist Auto Accident—OV struck IV claim. 380067 Smith 5/3/2021 Insurance company Sewer back-up resulting in property is negotiating with damage. Subrogation with Claimant's Claimant's insurance HO Insurance. carrier. 387706 Simons 2/9/2021 Insurance company Slip & fall on public sidewalk — is in discovery. Claimant alleges CCUA's work caused uneven sidewalk. 367224 Cloud 5/21/20 2nd Letter of IV allegedly struck pedestrian Representation on 1/23/23. Insurance company is managing. 360180 Pino 8/1/18 Defense provided Discrimination based on national under ROR. EEOC origin, age, and retaliation. Right to Sue issued on 8/25/23. 311050 Leopard 9/11/2017 Pending litigation— Hurricane Irma flooding resulting in Motion to Compel sewer back-up and property damage. 12/6/22, Deposition on 12/13/22 was cancelled 311051 Wilson 9/11/2017 Pending litigation— Hurricane Irma flooding resulting in Motion to Compel sewer back-up and property damage. 12/6/22, Deposition on 12/13/22 was cancelled D&C—Distribution&Collection IV—Insured Vehicle(CCUA) OV—Other Vehicle(Non-CCUA) WW—Wastewater Some claims are filed in an abundance of caution for record purposes only, should the claimant decide to pursue a claim later or in lieu of possible excessive costs. Minor claims, like damage from main breaks are often handled under the Utility Authority's "No Fault" coverage which allows for consideration up to $10,000 for the claimant's damages. Other claims are handled under the standard coverage.