1985/08/05 City & Beach Water,j;;•
AGREEMENT
lto THIS AGtirrrlrtir made and entered i.1 thin: UCIi. clay of
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Augunt , 1905, between the OKEECtIOUEE UnAC)) WA•ruit ASSOCIATION,
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VIC., a Florida non-profit corporation with its principal place
of business in okeeclsobee County, Florida, herelnafter referred
to as the "Association", and the CITY Or OY,F,F-Cllonx, a municipal
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corporation locaL•ed in Okeechobee County, Florida, hereinafter
referred to as tile "CiLy.of
{911r11TAS, the city owns and operates n potable water supply,
trn_nt=nent, pur"Ping nnd-distribution system; and
{•t1ICRrA a, the Association provides a water distribution
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system to cert-iin residents in Okeechobee County, Florida, and in
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GlndeS County, Florida) and
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t•rttrt E.AS, Lhe parties hereL•o have beers operating under an
a ree+nent dated Lhe Otis day of Septembr_r, 1970, nrncr,cled tlsn_ i IU1
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dny of Augunt, 1977, wlsereirs the City of Okeechobee had been
selling bulk waLr,r to Lhc Association in an amount- of 500,000
ga.lian*. ;per tiny s.isieh va)tusnr has nuw been er.ceeded and is
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Insufficient (or Lite present. nrsd LuLur.a 11L:cjr, of the Association;
and
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11014, •ri1P:srrOltr, in cosn:slderatiass of the ruin of ONL•' DOLLAR,
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the receipt- of which is hereby acknowledged, and other good and
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valuable considerations, the partie., agree as followsl
1. I'he City will provide to the Association an average
daily water supply of not more than 750.000 gallons per day for a
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period of Ton years fron the effective date of this Agreement;
caul water to be delivered to the Association at the plant clear
well under ats7sa;sphcric pressure) provided, however, that the City
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sha11 not be hold accountable for any reduction in tlse water
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supply or isznbility to comply with the terms herein clue to acts
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of God or Federal rind/or State or iLs subdivisions or agencies
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rules or regulations. Due to the limited water sources
nvailnble, the-City retains the exclusive right to the selection
of its water supply source and slsall not be held accountable to
Exhibit "D"
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the Ansociation or its customers; for the quality of water
delivered. 1.111.1+ the exception of chlorination, tl,e water
supplied pursuant to thin ngreement sl+all be of the same quality
an that supplied by Lila City Lo its customerq-
2. The AsnocinLion agreen to p:►y annually a systems
capacity charge of one dollar per gallon for all water uned in
excess of SUO,OUO gallons per day. This nyntem capacity charge
1s to be calculated at the and of each year's operation and the
number of gallons ngninst which thin charge shall be assessed
nha.ll be deLercn9ned by tile highest calendar month's average
during the preceeding year. an each anniver.nary date thereafter,
the Association will pay to the city any additional fee for
Capacity utilized during the previous year which was not
previously pald, buL no rebate shall be payable by the City for
any decrease in the nverage daily usage from the previous year.
Said payment nhnl.l in no manner crbat•e an interest in tile City'n
property nor guarzmLr.e rigl+L, beyond this Agreement. Tlln firnt-
anniversary dnG: ror L-hgt cal.cult+t.ivn of this charge sliall bn ono
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year from Ll+e daLe or thin Ayr6vmcnt.
(ror example, if on the first anniversnry of L-his contract
It is determined that the highest daily average used by the
Anrociation in any calendar month during Lhe previous year was
545,000 gallons the systems capacity charge for that year would
be $45,000.00. It on the second annlversary of this contract it
In determined that tl+e highest daily avcrago• used by the
Assoclation in any calendar month during the previous year was
500,000 gallons the systems capacity charge for that year would
be S35,000.00 as thin In based on the difference between the two
consecutive years. if however, the highest daily average during
the second year as 540,000 gallons, thn Assodiatlon would owe no
additional syntcros capacity charge rand would be entitled to no
refund or rebate of .the capacity charge piid in the previous
year.)
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3. The AsnociaClvn further agrees to pay monthly to t(te
tl1 City 1001 of the neLual cony to the City of producing the water, ;
rlur. nn additional 15%. For the purpose of this Agreement, the
1 nctual cost shall be computed by the City utilizing the following
itemsI
t1 3-1. Chemicaln (exclude post chlorination). 1
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' 3-2. ELectriciL•y (exclucle City finished water 'pumps).
3-3. Labor - percentage of total salaries as follows,
n). Director of pubiic Utilities - 501
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(b) Assistant Director of Public Utilities 501°
(c) Billing Clerk - 201
Operatora - 1001
(e) i`lnnt maintenance personnel - 1001
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Yy'• (r) 1-,later crew labor used for water plant repairs
j - 1001
3-4 Other ry..pcnscri:
Thonn nnnoclnt•ed with 11o. 3-3 Labor, n?.-)over ~
l'~ Ia) tlorl:rr't~ Campq!nsation
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Itealtit Itt::ur,tnce
(c:) 5vcirtl. Security
(d) Cen,ion Fund Cost ~
(e) Disability Insurance 1
1;•!• ( f ) Unemployment Claims Reitubursement s I
And the following expenses of the water plantt ;
(a) FroperL'y damage insurance
f~t (b) Fublie Utilities office telephone - 251 and
~'ty 1001 of water plant telephone
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(c) Audit Fee - 501 of water budget amount
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' lFIR (d) Office expense - $50 minimum ,
Legal counsel salary - 501 of water budget
W1 amount
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City administrative- fee - 251 of water budget
Jr. amount
3-5 Interent only'on actual debt service
(current and future plant construction).
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3-6 I1epair5 and maintenance, actual cont.
3-7 'truck expennet Actual with agreed upon minimum of
$ 150 per month.
3-0 Depreciation of the present worth of the water
plant which is designated at $1,75U,000 at 2 1/2%
per- year for a period of forty (40) years. it
being understood that said $1,750,000 does not
include any equipment owned solely by tile
Annociation or any equipment owned by the City
related suiely to the distribution of water to its
customers. Present worth of Lite water plant is
.1greerl to represent Lite sum of:
" $900,000.00 present worth designated in
amended Agreement of August 11, 1977.
' $51:,000.00 improvements (raw water intake
r,tt:ucture, one sand filter, emergency
generator, one transfer pump, etc.,
completed Occ:ember 14, 19701.
5335,000.00 new cle:+r :ell project.
Url,recialAon shall be atzkotnnticaly revirted upward
to reflect future plant expansion construction
costs as Incurred.
3-9. Iic!cluired lab testing (local and outside lab work).
3-10. Outside special service (legal, engineering and
adminint-r.1t•ive) actual cost of sexvice when used).
The formula for computing the coot of producing water
shall be:
A divided by 0 (A) where:
A - sum of items 3-1 through 3-10 above.
B r total finished water in thousands of 9,1110119.
The .111,013131- owed to the, City monthly'ohall be calculated
u.lnj Lite • actual cost of water produced, from the
formula above, multiplied by 11511, multiplied by
gallons of water per thousand furnished to the
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i'%'~ Asrtoc.iatl.on each month ors
~fl~k A x 1151 x total amount of wager, her thousand
+:j~ 13
' furnished to the r,ssociat•ion monthly.
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Example: Assuming h $32,445
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Assuming b 43,100,000
Assuming C a Association's water
use during month is 15,000,000
;'.'•Sj gallons.
X tj• Amount d x 1151 x C or:
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.753 x 115 1 x 15,000 ~ $12,909.25
4. The Association shall remit all sums due and owing to
City w.illtiit fifteen ( 15} clays of billing by the City. Upon
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[ailxi re of the Associ.atl.on to remit payments within thirty (30)
days of Original billing date, the City may, at 1.t, option,
cll^,.nnt•inue water scrvice to the Association mitil all arr.earage
Is paid in [till.
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5. the A, sociat:ion ngr.ees to continue to own, operate Ind
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pr operly mniii l:niit its btxt!ttcr pumprt, mainline meters" and
t:. chl.orinnt•ion faci lIt ies ~tl: it.., sole gxpcttse and to reimburse the
41 City [or elecLri.t:] t:y used in its Iininhed water pumps a, well as
chlorine utilized for post chlorination. The Association will be
;I solely responsible for testing, evaluating and treating the water
purcha,ed Crom the Cil:y, as may be required by any State or
Federnl. regulatory ngency.
6. It is understood betweesi.' he parties hereto, that the
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a loan'and/or grant made or
1(' Association is being Financed by
insured from L•lte United State of America acting through the
Farmers liome AdminIs traLion, United States Department of
tit lit ing to the
Agriculture, rind the provisions hereto per
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undertnking of the Assoclation are conditioned upon the approval,
in writing, of the State Director of the Farmers !Home
•J~~'% Association, nl)d in L•he event of any occurrence rendering the
Annocintion incapable or performing under this contract, ratty
nuccennor of the Association, whether Lhe result: of legal
process, nssigtnnent or otherwise, shall succeed the rights of the
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)1 Association lie reuncler, and the City agrees to be bound by such
t~ process, assignment, or otherwlse.
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7. It in further agreed between the parties hereto that the
tr Associatio" shall nerve all upero in the nrenv south of the
jj houndnry that in idenL-iflet) between the City and the Association
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per legal description attached hereto and made a part hereof as
8xhibit A, except for its users presently served by the City. It
is specifically agreed that the City shall not serve any new
!''y Water user in Lhis area unlesn such potential user tins been
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f} refused service by the Association, and neither Min il the
I'i I Association provide service to any user north of the boundary
'i. Urilens it ir, mutually agreed upon by the City and the
c'•. Association.
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0. The L•r_rmr; of this Agreemr_nt shall be for a period of
rl Len (10) years connneneing October 1, 1901 and shall be bindi.r1g
~~A}, upon tin ntlcceFSOrs or assigns of the parties hereto.
tkS III wI'I'IIrsS wIII;IIrr)F, the parties hcreLo have her.eu11to` set
+~T their 1111"(1- 1111-1 r+~111 s :1r; of f is ki l s of boLh Or. Association and
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V, the City, prior :1ulloriz:lLion for such execution having been duly
+~1 obtained from the CiLy Council, City of Meechobee, and the Doard
of Directorn of oYehchobee Beach Writer Association, Inc.
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or:rr•.cnor/r;l: rsi:ncll 1•IA•1'r•,It
ASSOCIAT.T o7•, lac.
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A'1"1'rSTt CITY OF OFEECrlOISEE
rE!~t' City Clerk 13y
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LEGAL DESCRIPTION Or OKEI;C11013C1; DEACII I•,ATE1l ASSOCIATION
SERVICE DISTRICT
Beginning at t:hm Townshi.p line between T37S and T30S on the
` Martin County line proceed west along the north Section line of
sections i, 2 zind 3 in T30S to the west corner of Section 3;
thence north along the east section line of section 33, 2'37S to
the northeast corner of section 33 thence west along the north
section line of section 33 and 32 to the half section line of
section 32, 29 thence north on the half section line of section
29 to the cast went section line betwec+n sections 29 and 2t)
thel,ce west along this section line along the north side of
sections 29, 30, T37S, I13GE anJ suction 25 and section 26, T37S,
1135E to the wr.st section line of ,r.cl•ian 26 then south along the
' west section line of section 26 to its southwest corner thence
west nlong the north section line of•sect.ion 34 to the northwest
corner of nection 34 P.l;rnCr. noul.h along I,hr, w-st :a•c:tinn lint? of
se(:t:lon 34 Lo the north 1/4 secti,.)n t.henco west on the
north 1/4 sect lun l ing Lo I hc. Iial ( st•r:t Ion l ine cif soot' ion 33
thence !south on the t)ot, ( sect- inn l i n.• I c• I.he -.'ts t wrs t 1 /'h
sect-ion line of sccti(')r, 33. Oiujit:u wcs..t along 1.11o cast west 1/2
section line of the north south su=ction line between section- 33
1 and 32 thence south to the south west corner of section 33 thence
west along the south section line of section 32 to the southwest
corner of section 32 thence south to the enst wr_:;t half section
line of section 5, •T3ii R35G thence west to the townshii.) Range
i tie between 11351.•. nml 1134r thence south to the north. 1/4 section
line of section i thence west: on the south section 1. ine of
section 1 to tltr_ hoover. Dy%c Road, thence southeast along the
Hoover. Dyke Roncl to take Okeechobee, thence northeast and south
along Lako ukcechubve shore line to the Martin County line,
thence norl:h along t•he Itartin County I itie to the point: of
beginning, c,.
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