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09-19-1994 SEP -19 -94 MON DEAN MEAD MINTON FAX Na 4074647877 P,02/05 DEAN, MEAD MINTON P. IU/ -/NLYS AN E LOR'= Af YARN SI52 7700 FCRT Z'IC•CC, r. na.ce .aoca September 19, 1994 John Drago City Administrator, City of Okeechobee 55 SE Third Avenue Okeechobee, FL 34974 -2932 Leland C. Pearce, President Okeechobee Beach Water Association 8840 Highway 78 West Okeechobee, FL 34974 Re: Extension of Agreement between Okeechobee Beach Water Association, Inc. and City of Okeechobee Dear Gentlemen: During our meeting; last week, it became apparent that there was mutual ground regarding the extension of the above referenced Agreement which needed to be communicated to both parties. During various telephone conversations we relayed these mutual grounds to both of you on Friday of last week and a draft Wholesale Agreement was submitted to us by the City of Okeechobee for consideration by Okeechobee Beach Water Association, Inc. "Okeechobee Beach Attached to this correspondence is the response we received from the attorney for Okeechobee Beach regarding the proposed Wholesale Agreement. In light of the concerns raised in that correspondence, we believe that our original suggestion of an extension of the current agreement provides the most likely means to resolve the immediate outstanding issue related to the cost for water on or after October 1, 1994 without prejudicing either party's position in the current litigation which will be held in abeyance while we attempt to establish the new Okeechobee Utility Authority. In light of the foregoing, we suggest that instead of a new Wholesale Agreement, a simple extension of the current Agreement be prepared addressing the following issues: 1. The Agreement should be extended for one year ending September 30, 1995; 2. The water capacity shall be for the same amount provided in the Agreement, plus an additional 100,000 gallon.- pear day; 3. The rate should be in accordance with Resolution. 89 -5 for wholea1e wat e oua:w. O r M DEAN. r oo, o n +c.. Ecnro n. w..... 5O.0■•■• 9G•G o 0 SEP -19 94 MON DEAN MEAD MINTON FAX NO. 4074647877 P.03/05 John vrugo -and Leland C. Pearce September 19, 1994 Page 2 4. New service will be provided by Okeechobee Beach Water Association only in the instance of infill, which is defined to include additional metered service where mainlines currently exist, requiring addition of lines of two (2) inches or less. If the foregoing is agreeable, please acknowledge by initialling the signature page attached to this letter and r it via telefax to us for presentation to the City 4ouncil next week. It is understood and agreed that the foregoing proposal has been approved by a vote of the Board of Directors of Okeechobee Beach Water Association and is subject to the vote of the City of Okeechobee Council. In addition, we request that your approval of this letter acknowledge your consent to our firm's involvement in assisting in negotiating the settlement between the parties in order to facilitate the establishment of the temporary Okeechobee Utility Authority and that our firm's involvement does not and will not constitute a conflict of interest in relation to the negotiations between the parties in establishing the Okeechobee Utility Authority. If you have any questions, please feel free to contact me. With best regards, I remain, (ZS c re y ;owes, Michael MDM /dj cc; John Abney (via telefax) John Cook, Esq. (via telefax) John Cassels, Esq. (via telefax) Burton Conner, Esq. (via telefax) John Drago, City Administrator City of Okeechobee Leland C. Pearce, President Okeechobee each Water Association c: \mdm \20121dj.07 SEP -19 -94 NON DEAN MEAD M[NTON FAX NO. 4074647877 P. 04/05 TEL :1 13 -467 -6316 Sep 19.94 10:39 No.005 P.01 BURTON 0. CONNEIt. P. A. ATtOPNCCS ANO COUNSELORS AT LAW AOI 74OXTHWRBT FIFTH EITRIDQT (,KEICC'IIOBEE. NT4)RIDA 940722 IBUNTON C. CVN1.04J4 I)ffi/ORAH M IEOOXCrOt 77M MPH ON (4131 .wy.AAOO tRit)1 4o7433t0 September 19, 1994 Michael D. Minton, Esq Dean, Mead Minton P.O. Box 2757 Fort Pierce, FL 34594 2757 VIA REGULAR MAIL AND FACSIMILE: 407- 464 -7877 Re: Extension Agreement between Okeechobee Beach Water Assn., Inc. and City of Okeechobee Dear Michael: The Board of Directors of Okeechobee Beach Water Association, Inc. "Beach Water (net Saturday evening to consider your proposal for an extension of the agreement. between Beach Water and the City, as well as the counterproposal by John Drago. Beach Water remains committed to forming a utility authority and working cooperatively with the other two entities toward that end, Beach Water has agreed to enter into a moratorium on all litigation proceedings to promote the formation of the utility authority. It is our position that the purpose of the moratorium is to maintain the status quo as much as possible, while working toward a utility authority. In the spirit of working cooperatively, each side is not supposed to be posturing for a better position if the attempt to form a utility authority fails and we are back to a litigation mode, Beach Water respectfully declines to accept the counterproposal of Mr. Drago. It goes too far and involves much more than what is necessary. Your proposal is simple and promotes the status quo regarding litigation postures. liven though under Chapter 180 Beach Water could connect meters larger than 2 inches for in -fill purposes, in the spirit of cooperation, Beach Water is willing to accept that as a temporary limitation. Being limited to 5/8 inch meters is completely unacceptable. The City has ample capacity to supply us with 850,000 gallons per day, and there should be no penalty for exceeding that amount. The City will simply enjoy increased revenues. By our calcukations on the wholesale rate, the City will be earning an average profit of $14,800.00 per month above the cost of productiou. SEP -19 -94 MO DEAN MEAD MINTON FAX NO 4074647877 P. 05/05 TEL 1- 9J3 -46 -6316 Sep 19.94 10.39 Nu.005 P.07 September 19, 1994 Page 2 Extension Agreement/Beach Water City of Okeechobee The extension agreement needs to be in the form of a simple addendum to the existing contract and needs to do three things: 1. extend the agreement for one year, 2. increase the water capacity to an average of 850,000 gallons per day, and 3. set the fee for water consumed by Beach Water in accordance with the wholesale rate specified in Resolution R4-S, xt.J By going to a wholesale rate instead of a formula rate. it is Beach Water's understanding that the Systems Capacity Charge in the existing contract will no longer be applicable. Beach Water has requested to be an the City Council agenda for September 20th to discuss an extension agreement. As 1 understand it, Mr, Drago has requested that all communication about an extension agreement go through you. Would you please inquire and advise me whether Beach Water will be on the agenda Tuesday evening? Thauk you for your Assistance_ Sine 1y, r urton C. Conner Enclosure ec.: Board of Directurs John D. Cassels, Jr., Esq. John R. Cook, Esq.