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April 29, 1993Dear Commissioner Harvey: City of Okeechobee Charles Harvey Chairman Okeechobee Board of County Commissioners 304 N.W. 2nd St. Okeechobee, Florida 34972 Re: OBWA Franchise agreement 55 S.E. Third Avenue Okeechobee, Florida 34974 -2932 813/763-3372 IC (4/01 817 tt1) April 29, 1993 Please accept this letter as notice on behalf of the City of Okeechobee of the objections of the City to the intended action of April 29, 1993, by the Board of County Commissioners concerning the adoption, and award, of a franchise from Okeechobee County, to Okeechobee Beachwater Association, for the provision of water and wastewater service to the area as delineated in Exhibit A attached to the franchise agreement. Let me preface this letter by referring back to what I consider the initiation of, and continuing basis for, this objection; that being the filing of the action by the City with the Department cf Administrative Hearings (DOAH), objecting to the comprehensive plan submitted by the County on April 2, 1992. You will recall that our primary objections to the County comprehensive plan was that the plan did not address goals, policies or objectives necessary for intergovernmental coordination and cooperation between the County and the City regarding the future of, and provision for, utility service in the unincorporated area of the County. In fact, the plan as submitted seemingly by- passes any coordination with the City. The other primary objection to the plan is the failure of the County to appropriately refer to the one and only water and wastewater utility system, and service area, in existence, that of course the system of the City. Due to this omission, and specifically the plan's failure to accurately identify the City's wastewater and potable water geographic service area, including that portion of the City's service area which extends into the unincorporated area of the County, and to which the City has sought tc provide service to on a uniform and nondiscriminatory manner, the City felt it imperative to protect our interest by initiating the DOAH action. Since September, 1992, despite our best efforts, little progress has been made towards negotiating a settlement of these Pace 2 concerns of the City. Our intent was, and is. as being in the best interest of all Citizens in the County, was to arrive at a mechanism to facilitate intergovernmental co- operation in developing County -wide utility service, and avoid territorial disputes over service areas to prevent, or limit duplicative or competitive water and wastewater utility service areas. Historically of course, since at least 1970, the ability of Beachwater to provide water service to the area it serves has been negotiated with, and permitted by, the City of Okeechobee, and as we all know, this agreement is due to expire in October, 1994. Despite our efforts to resolve these problems, we are now confronted with the specter of the County of Okeechobee stepping in and assuming control over the service area granted to Beachwater by the City, and entering into a franchise agreement with Beachwater. This franchise not only permits water service within the present area in which Beachwater has its infrastructure, but permits expansion of service, and purports to grant the right to provide wastewater service as well throughout the area granted as well. Thus, the City now must address the very problem we sought to avoid by initiating the DOAH action; unilateral action in the area of utility service by the County without any intent, or attempt by the County to co- operate with the City, and encroachment within the service area we have claimed for many years. While we all have endeavored to some degree to work towards a unified utility system, each of you must understand that the City must proceed also with an assumption that such a system may never come to be. Therefore, the protection of the existing 201 utility service area is a priority concern for the City of Okeechobee. If we must continue providing utility service without joinder by the County or other entity, and regardless of the existence of this franchise agreement or subsequent formation of a utility authority by the County, we cannot, and will not, permit intrusion by others seeking to provide utility services into cur service area. Everyone is clearly aware of the City's system expansion plans on the table at this time; the letting of the contract to construct our well water facility to provide an additional one million g.p.d. to our customers, and the impending design contract to double cur wastewater capacity, from .6 million g.p.d to 1.2 million g.p.d. Although the City does not yet actually have pipe in the ground throughout our service area, we do possess the prior legal right to serve the area. The City has also been conducting planninc. engineering, and design studies to expand our system and customer Page 3 base, in conjunction with the above described plant expansions. In summary, the City remains ready, willing and able to render efficient and effective service to those within our service area who seek to be served. The objections that we raise to the franchise include that there exist questionable grounds to support the granting of this franchise by the County; the County is acting inconsistently with the adopted goals, policies and objectives of the Okeechobee County comprehensive plan by granting this franchise; and the County has failed to obtain the consent of the City to this encroachment into our service area, as required by Florida Statutes 180.06, which deals with the construction of, and operation of, a competing utility service in a previously established service area. The adoption of this franchise ordinance at this time will not promote the formation of a utility authority; to the contrary, it may force the City to protect its substantive and procedural remedies by the immediate filing of appropriate legal challenges. While this notice may not serve to cause each of you to reconsider this ill- advised approach to the provision of water and wastewater service to the North shore of Lake Okeechobee, you proceed at your peril, and to that of the Citizens of the County and City of Okeechobee. The City must reserve the right, and so places you cn notice, to initiate any and all appropriate legal challenge to this franchise and intrusion into our service area. Kindest Regards, f L am^ z)-- `ohn R. Cock City Attorney City of Okeechobee JRC /1fy cc: Jack Coker Okeechobee Beachwater Association, Inc. South Florida Water Management District p*