April 7, 1993a
OKEECHOBEE BEACH WATER ASSOCIATION, INC.
8840 Highway 78 West
Okeechobee, Florida 34974 -9787
(813) 763 3793 Fax (813) 467- 4335
Serving Customers in Okeechobee And Glades County
April 7, 1993
TO: The Membership of OKEECHOBEE BEACH WATER ASSOCIATION, INC.
Dear Fellow Members:
As you know the Board of Directors has decided to build a 1.5 million gallons per day
water treatment plant rather than enter into another bulk sale contract with the City of
Okeechobee. It is the best way to control the cost of water in the future. Without our
own water treatment plant, our membership will be at the mercy of the City of Okeechobee
on future water rates once our existing contract with the City expires.
Another concern the Board has is that the City can use the power of eminent domain to
condemn our system and take it away from us. Chapter 180, Florida Statutes, gives the
City the option of condemning our system. Your Board of Directors believes that the City
will do everything it can to stop our efforts to build a new plant.
Your Board of Directors, after careful thought and deliberation, has concluded that the
best way to protect our system from being taken over by the City is to enter into a utility
franchise agreement with the County of Okeechobee. Such a franchise agreement will
enable Okeechobee Beach Water Association, Inc., "OBWA to take the Lead in providing
not only quality water, but also eventually sewer service in the south end of Okeechobee
County. By working hand -in -hand with the County, the City will not be able to condemn
our system and take it away.
The County is willing to give us the protection of a franchise if we are willing to help solve
a future problem the County is facing. The South Florida Water Management District is
pushing the County to develop a sewer system along Rim Canal. At this point. the County
wants OBWA to handle water and sewer service on the south end of the County.
However, if in the future the County gets into the utility business by itself, or if it forms
a utility authority, the County will want to acquire our system through a voluntary purchase
arrangement, rather than condemning our system and taking it away from us. That is why
the County is insisting on a purchase clause in the franchise agreement.
Hopefully, our system will never be taken over by either the County or the City. However,
if we are taken over, your Board of Directors feels a purchase arrangement with the
County would be less detrimental to our membership than being condemned by the City
of Okeechobee. At least the County does not have a tremendous utility debt to spread
around like the City has.
The franchise agreement will also provide a basis for Okeechobee County to develop an
inter-local agreement with Glades County to provide sewer service to Buckhead Ridge.
SEE BACK
At the special meeting the membership also needs to approve an amendment to our
Articles of Incorporation filed back in 1965. Article II contains a clause which allows us
to sell excess water. In order to get a consumptive use permit from the South Florida
Water Management District, we have to obtain certification that we are exempt from
regulation by the Public Service Commission "PSC We cannot get the certification
unless we delete the clause in the Articles of Incorporation allowing us to sell excess water.
The PSC wants us to sell water only to our members.
Enclosed is a notice of a special meeting of the membership to seek your approval for
OBWA to enter into this franchise agreement and to amend our Articles of Incorporation.
It will be an extremely important meeting for our membership. Please attend so we can
provide you with further information and hopefully obtain your approval.
The proposed franchise agreement is quite lengthy (40 pages). If you would like to review
a copy before the meeting, please contact the OBWA office.
Sincerely,
LELAND PEAR.-E, Chairman
ERNA GABRIEL, Director
(Unavailable for review and signature)
MITCHELL HOWELL, Director
TOM BARNES, Director
JUK COKER, Director
April 7, 1993
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