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HomeMy WebLinkAbout14.f FYI GHW Audit Response Letter 0'EpGRADY H. WILLIAMS,JR., LL.M. ATTORNEYS AT LAW, P.A. Grady H. Williams, Jr., LL.M.* �i *Master of Laws in Taxation $i) GradygFloridaElder.com ATTORNEYS i MAIN OFFICE MAILING ADDRESS JACKSONVILLE '1747. 1543 Kingsley Avenue,Building 5 P.O.Box 1542 Tel:904-268-8170 Orange Park, FL 32073 Orange Park,FL 32067 Ertate Planning -Olt P.O. -4Ik Probate•Elder Law Tel:904-264-8800 Fax:904-264-0155 www.FloridaElder.com November 27, 2024 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 Karen D. Osborne, Chief Financial Officer of CCUA, by letter dated October 31, 2024, 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, 2024, 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, 2023, and ended on September 30, 2024, 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, 2024, 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. November 27, 2024 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. November 27, 2024 Exhibit"A" to James Moore & Co., P.L. Audit Response Letter of November 27, 2024 1. Please see Clay County Utility Authority's Quarterly Claims and Liabilities Report from Kimberly Richardson, Chief Human Resources Officer for CCUA, to Jeremy D. Johnston, Executive Director of CCUA, dated October 1, 2024, 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 with CCUA HR Department against then CCUA Executive Director, who has since retired. 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 was 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. It is therefore CCUA's understanding that Mr. Pino now would be barred from bringing a federal based civil cause of action on such allegations. CCUA's outside Labor Law attorney Jeffrey Ludwig of Ludwig & Hulsey, P.A., email:jludwig@ludwiglaw.net, is also available to further advise CCUA management and HR Department on this matter. 3. As of September 30, 2024, CCUA's General Contractor, KBT, had not yet achieved substantial completion of its contractual obligations regarding the construction of the expansion of CCUA's Administrative offices,parking, and supporting campus infrastructure. CCUA has been diligently monitoring their progress and is in regular communication with the General Contractor through its Architect of record. Substantial liquidated damages for delay in achieving substantial completion are expected to be credited against CCUA's final adjusted contract price due for this ongoing construction project. CCUA is represented by Bachara Construction Law Group of Jacksonville, FL, email: tmacleod@bacharagroup.com, in this matter. 4. The Leopard and Wilson civil claims are pending in Circuit Court in Clay County, Florida, and may be resolved by jury trials scheduled for August 2025. 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. Mark Hulsey IV,partner at Ludwig Hulsey, P.A. of Jacksonville, Florida, email: mhulsey@ludwiglaw.net, is CCUA's legal counsel of record on these matters. 3 Cei CLAY COUNTY UTILITY AUTHORITY MEMORANDUM TO: Jeremy D. Johnston, P.E., MBA FROM: Kimberly Richardson, Chief Human Resources Officer DATE: October 1, 2024 RE: Quarterly Claims and Liabilities Report for 4th Quarter of FY 2023/2024—July 1, 2024 through September 30, 2024 Package—CCUA Fleet Auto At-Fault Claims Claim Claimant Date of Amount Description No. Loss No new claims Package—General Liability Claims (Bodily Injury, Private Property Damage, etc.) Claim Claimant Date of Amount Description No. Loss 431346 Gamble, 09/16/2024 $700 Claimant alleges damages to tire due to Thomas pothole. 431490 Johnson, 09/13/2024 $5,500 Claimant alleges damages to pavers due to Rudy water leak. 430631 Lee, April 08/25/2024 $1,931 Property damage due to reclaim water main break 431170 Wenzel, 08/25/2024 $2,450 Property damage due to reclaim water main Jeremy break 430278 Johnson, 08/09/2024 $10,000 Sewer backup due to mislocate Richard& Renee 429900 Finn, Chuck 07/15/2024 $10,000 Property damage due to water main break 429361 Gorman, Jeff 07/18/2024 $4,300 Property damage due to water main break Total $30,881 Package—CCUA Property Damage & Loss Claim Claim CCUA Date of Claimant Description No. Department Loss No new claims Package — Professional Liability Claims 04/01/2023-06/30/2024 (Workplace Harassment, Discrimination, Employment Practices, etc.) Claim CCUA Date of Claimant Description No. Department Loss No new claims Worker's Compensation Claims (Slip & Fall, Puncture, Strain, etc.) Claim CCUA Date of Amount Description No. Department Loss 429810 Operations 07/26/2024 $1,750 Strain while lifting Total $1,750 Active Ongoing Litigation Claim Claimant Date of Status Description No. Loss 422047 Treon, Anna 2/26/23 Defense counsel Claimant hit manhole cover damaging provided. car and injuring claimant 422046 Treon, Todd 2/26/23 Defense counsel Claimant hit manhole cover damaging provided. car and injuring claimant 422647 Breville 11/22/23 Insurance adjuster IV rear ended OV awaiting demand. 421457 Moraes 11/22/23 Insurance adjuster IV rear ended OV awaiting demand. 416726 Kuhrt 2/12/23 Adjuster managing BI — Tripped on water meter. Denial claim. letter issued. 411849 J Town 8/29/2023 Defense counsel First Amendment claim Press provided. 393598 Kenney 4/22/22 Defense counsel Auto Accident—IV struck OV provided. 383896 Griffin 8/5/21 Insurance adjuster Auto Accident—OV struck IV handling 380067 Smith 5/3/21 Defense counsel This settled and is processing for provided. payment and closeout 387706 Simons 2/9/21 Defense counsel Slip & fall on public sidewalk — provided. Claimant alleges CCUA's work caused uneven sidewalk. 428059 McDaniel 01/21/21 Defense counsel Alleged fall. NOI rec'd June 24 is provided. untimely. 367224 Cloud 5/21/20 Defense counsel This settled and is processing for provided. payment and closeout. 311050 Leopard 9/11/17 Pending litigation— Hurricane Irma flooding resulting in Motion to Compel sewer back-up and property damage. 12/6/22, Deposition Set for trial the week of August 25, on 12/13/22 was 2025. 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 Set for trial the week of August 25, on 12/13/22 was 2025. 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.