November 12,1991I /IiOF EECy
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Leland Pearce, President
Okeechobee Beach Water Association
8840 Highway 78 West
Okeechobee, Florida 34974
Dear Mr. Pearce:
The City received your letter stating that Beach Water will
continue to seek a separate water supply for your customers. Thank
you for your prompt reply.
I became curious to see what Beach Water is currently paying
the City under its present contract compared to what the City would
have proposed to Beach Water under a new contract. I asked PMG
Associates (The City's rate consultant) to give me a cost
comparison. Below is our comparison between your current contract
and the City's proposed contract. The numbers were derived from
your last 12 water bills (August 90 to July 91). The volume of
water for that period was 210,300,000 gallons.
Beach's Current Contract City Proposal
Volume Charge
Debt Service
Annualized
System Capacity
Fee
TOTAL
$213,238.00
62,1 98.00
45,988.00
City of Okeechobee
/,.//,d., Volume Charge $213,238.00
es� 4 M Debt Service 187,823.00
4r
�t,Annualized 45,988.00
3 3i 33 System Capacity
Tee
TOTAL
55 S.E. Third Avenue Okeechobee, Florida 34974 2932.813/763 3372
$447,049.00
November 12, 1991
Volume Charge $290,214.00
($1.38/1,000 gal.)
Debt Service 25,500.00
($2,125/mo.)
Service Availability 36,000.00
Fee ($3,000 /mo.)
$321,424.00 TOTAL $351,714.00
The above increase is approximately 9 I became more curious
as to what effect the new water plant would have on your current
contract (if it were extended 10 years) compared to the City's
Contract. Again I asked PMG Associates to provide me the figures.
For comparison purposes PMG used your last 12 water bills (August
90 to July 91). The volume of water for that period was
210,300,000 gallons. Below are the figures:
Beach's Contract City Proposal
Volume Charge $290,214.00
Debt Service 38,700.00
($3,225/mo.)
Service Availability 36,000.00
Fee ($3,000 /mo.)
TOTAL $364,914.00
Mr. Leland Pearce
November 7, 1991
Page 2 of 2
To avoid any future problems with contract time frames, I
would recommend to the City Council that you be granted a perpetual
contract, and develop a mechanism to share in the current increase
water capacity granted by DER.
Leland, I appreciate your professionalism throughout this
issue and I look forward to working with you in the future.
JEK /res
Sincerely,
James E. Kirk
Mayor