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1995-03-07526 CITY OF OKEECHOBEE REGULAR CITY COUNCIL MEETING SUMMARY OF COUNCIL ACTION A. Call Meeting to order on March 7, 1991F at 7:00 p.m. B. Invocation offered by Reverend John Hart; Pledge of Allegiance led by Mayor Kirk. C. Mayor and Council Attendance: Mayor James E. Kirk Councilmember Noel A. Chandler Councilmember Michael G. O'Connor Councilmember Robert Oliver Councilmember Dowling R. Watford, Jr. Staff Attendance: City Attorney John R. Cook City Administrator John J. Drago City Clerk Bonnie S. Thomas Deputy Clerk S. Lane Gamiotea PAGE 1 OF 6 Mayor Kirk called the March 7; 1995 meeting to order at 7:02 p.m. Reverend Hart offered the invocation; Mayor Kirk led the Pledge of Allegiance. Clerk Thomas called the roll: Present Present Present Present Present Present Present Present Present D. Motion to dispense with the reading and approve the Summary of Councilmember O'Connor moved to dispense with the reading and approve the Council Action for the regular meeting of February 21, 1995. III Summary of Council Action for the regular meeting of February 21, 1995; seconded by Councilmember Watford. KIRK CHANDLER O'CONNOR OLIVER WATFORD MOTION CARRIED. 527 E. Motion to approve Warrant Registers for January, 1995: General Fund ....... $285,089.64 Public Utilities Fund... $387,339.87 March 7, 1995 - REGULAR MEETING - PAGE 2 OF 6 Councilmember Watford moved to approve the Warrant Registers for January, 1995 in the amounts: General Fund two hundred eighty-five thousand, eighty-nine dollars, sixty- four cents ($285,089.64) and Public Utilities Fund three hundred eighty-seven thousand, three hundred thirty-nine dollars, eighty-seven cents ($387,339.87); seconded by Councilmember Oliver. KIRK CHANDLER O'CONNOR OLIVER WATFORD MOTION CARRIED. REQUEST FOR THE ADDITION, DEFERRAL OR WITHDRAWAL Mayor Kirk asked if there were any additions, deferrals or withdrawal of items on today's OF ITEMS ON TODAY'S AGENDA agenda? Councilmember Watford asked for clarification if the Council will be able to discuss the Land Development Regulations (LDR's)? Following discussion between Councilmember Watford, Mayor Kirk and Attorney Cook it was decided that Council should stick with the agenda and not discuss the LDR's tonight. F. NEW BUSINESS Motion to approve a partial pay request to CenState in the Councilmember Oliver moved to approve partial pay request number three to CenState amount of $87,280.92 - Director of Public Utilities (Exhibit 1). Contractors in the amount of eighty-seven thousand, two hundred eighty dollars, ninety- two cents ($87,280.92) for Northeast 6th Avenue, Southeast 7th Street and Big Lake National Bank Lift Stations as recommended by Engineer Willard of Knepper and Willard, Inc.; seconded by Councilmembers Chandler and O'Connor. KIRK CHANDLER O'CONNOR OLIVER WATFORD MOTION CARRIED. X X X X X X X X X X 528 MARCH 7, 1995 - REGULAR MEETING - PAGE 3 OF 6 F. NEW BUSINESS 2. Discuss the Operational Agreement between the City of Attorney Mike Minton of Dean, Mead and Minton, Attorneys for the Utility Authority Okeechobee and the Okeechobee Utility Authority - Mayor formation appeared before the Council to answer questions on the proposed operational Kirk (Exhibit 2). 1 agreement between the City and the Utility Authority. Mayor Kirk questioned the language on page eight, (4.6), and why it was included? Attorney Minton answered it is surplusage language from the interlocal agreement, but is in there for the benefit of Okeechobee Beach Water Association (OBWA). Councilmember O'Connor questioned the time frame of the next agreement which will be the Master Transfer Agreement? How many drafts are needed? And would the City have their chance to look at it thoroughly especially concerning employees and other issues? Attorney Minton responded that Engineer Hartman should have the first draft ready for the Utility Authority Board to review in four to six weeks, they are one month behind schedule. It should take an estimate of three drafts before the document suits all parities. The City will have an opportunity to address their issues of interest and he recommended holding workshops for that purpose. Councilmember Watford asked on page five, service area, this is the City's 201 Service Area? Administrator Drago responded yes. Councilmember Watford continued, by passing this are we saying that is our service area? Attorney Minton responded the City is but no one else is. Councilmember Watford asked on page seven, (4.2), what does that mean? Attorney Minton advised that that paragraph is inserted to keep everything on hold until we can get through this process for the Utility Authority to take over. Councilmember Watford question page eight, (4.7), concerning the City's permits, we will assign them over to the Authority? Is this the normal thing to do? What is the expense and who is responsible for it? Attorney Minton responded that the City will assign over all permits to the Authority after the master transfer agreement is adopted, he did not know the cost and the responsibility of the cost would be determined in the master transfer agreement. 29 F. NEW BUSINESS 2. Operational Agreement continued: MARCH 7, 1995 - REGULAR MEETING - PAGE 4 OF 6 Councilmember Watford questioned page nine, (6.3), concerning rights of the creditors and obligee of the City, and asked what that meant? Attorney Minton explained that while the City operates the utilities, the City is in charge of it, when the system transfers to the authority any debt that does not go with the system, the Authority is not responsible for. Councilmember Watford asked if on page ten, (6.4), if that meant the City could not float any more bonds? Attorney Minton responded that was correct, this keeps everything as is until the transfer of the system. Councilmember Watford asked if on page ten, (7.1), under default, if the City backed out, can we be sued to continue on with this? Attorney Minton responded no because of language in the interlocal agreement. Mayor Kirk commented that unless Attorney Cook could point out some reason for the Council not adopting the agreement, he recommended to the Council that they approve the proposed operational agreement. Attorney Cook stated he had reviewed the agreement and could not find any reason the Council should not approve it. Councilmember O'Connor moved that we sign the Operational Agreement between the City and Utility Authority as prescribed, as we discussed; seconded by Councilmember Watford. KIRK CHANDLER O'CONNOR OLIVER WATFORD MOTION CARRIED. X X X X X 530 F. NEW BUSINESS 3. Discuss appointing a Citizens' Committee to review the Land Development Regulations - Mayor Kirk. MARCH 7, 1995 - REGULAR MEETING - PAGE 5 OF 6 Mayor Kirk began discussion concerning appointing a Citizens Committee to review the Land Development Regulations (LDR's), commenting that sometimes the City get's an idea, and we think we are doing good, however it turns out a mess. The original intent of this document was a good one. Perhaps the idea got a little carried away, the idea of a theme started with the Block Grant for downtown and he felt that should be the only area for the theme. He then suggested that a citizen's committee be appointed and each Councilmember recommend someone. Councilmember Oliver asked what type of time frame was the City under? The Council has been told the LDR's need to be adopted as soon as possible. Attorney Cook responded that the time frame set out in the comprehensive plan is passed, but that the City has until 1996 or 1997, however, he would like to see them done by this summer. Councilmember Watford stated that he did not have a problem with appointing a citizen's advisory committee. However, he did feel that the Council should go ahead with their recommended changes to give the committee a better working document and it would allow the committee to see what the Council's views are. Council then discussed the criteria for a person to be appointed to the committee. No definite guidelines were set. Councilmember Watford moved that we set discussion of the LDR's for the next meeting agenda, make our changes and then appoint a citizens committee• seconded by Councilmember Oliver. Attorney Cook advised that the public hearing to adopt the LDR's would not be removed from the table; it (the motion as stated), would only allow discussion and amendments by Council to the document. Councilmember Watford asked when Volume IV would be completed? Administrator Drago responded that once the Council makes the changes at the next meeting he would carry those changes over and get a rough draft of Volume IV prepared and let the committee review both volume's. 531 F. NEW BUSINESS 3. Land Development Regulations continued: ADJOURNMENT - Mayor Kirk. PLEASE TAKE NOTICE AND BE ADVISED that if a person decides to appeal any decision made by the City Council with respect to any matter considered at this meeting, he/she may need to insure that a verbatim record of the proceeding is made, which record includes the testimony and evidence upon which the appeal is to btape recording of this meeting is on file in the City Clerks Office / j James E. Kirk, Mayor ,'Bonnie S. �Thomai, OMC, City Clerk MARCH 7, 1995 - REGULAR MEETING - PAGE 6 OF 6 Councilmember Watford asked if it would be possible for the Zoning Administrator to act as a ex-officio member since he works with these types of issues? Councilmember Oliver interjected that he, (the Zoning Administrator), would bring in expertise since he has already gone through this. process with the County's (LDR's). Attorney Cook and Mayor Kirk thought it would be better to let just the citizen's sit on the committee. Councilmember O'Connor called the question. KIRK CHANDLER O'CONNOR OLIVER WATFORD MOTION CARRIED. There being no further items on the agenda, Mayor Kirk adjourned the meeting at 8:10 p.m. X X X X X CITY OF OKEECHOBEE CITY COUNCIL MEETING OFFICIAL AGENDA A. Call Meeting to order on March 7, 1995 at 7:00 p.m. B. Invocation offered by Reverend John Hart; Pledge of Allegiance led by Mayor ►Grk C. Mayor and Council Attendance: Mayor James E. Kirk Councilmember Noel A. Chandler Councilmember Michael G. O'Connor Councilmember Robert Oliver Councilmember Dowling R. Watford, Jr. Staff Attendance: City Attorney Cook City Administrator Drago City Clerk Thomas Deputy Clerk Gamiotea D. Motion to dispense with the reading and approve the Summary of Council Action for the regular meeting of February 21,1995. E. Motion to approve Warrant Registers for January, 1995 General Fund $285,069.64 Public Utilities $387,339.87 REQUEST FOR THE ADDITION, DEFERRAL OR WITHDRAWAL OF ITEMS ON TODArS AGENDA F. NEW BUSINESS 1. Motion to approve a partial pay request to CenState in the amount of $87,280.92 Director of Public Utilities (E-1) 2. Discuss the Operational Agreement between the City of Okeechobee and the Okeechobee Utility Authority - Mayor Kirk (E-2) 3. Discuss appointing a Citizens' Committee to review the Land Development Regulations - Mayor Kirk ADJOURNMENT NOTICE IS HEREBY GIVEN THAT IF ANY PERSON SHOULD DECIDE TO APPEAL ANY DECISION MADE AT THIS MEETING OF THE CITY COUNCIL, SUCH PERSON WILL NEED TO INSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE WHICH INCLUDES THE TESTIMONYAND EVIDENCE UPON WHICH THE APPEAL IS BASED Eml Kriepper& Willard. inc 1% lid T,. I i 1. 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BOX 2757 FORT PIERCE, FLORIDA 34954-2757 HAND DELIVERED John Drago City of Okeechobee 55 SE Third Avenue Okeechobee, FL 34974 Dear John: DEAN, MEAD & MINTON ATTORNEYS AND COUNSELORS AT LAW 1903 SOUTH 25TH STREET SUITE 200 FORT PIERCE, FLORIDA 34947 February 21, 1995 Re: Operational Agreement by and between City of Okeechobee and Okeechobee Utility Authority E-2 (407) 464 7700 (407) 562.7700 FAX (407) 464 7877 Enclosed please find two executed originals of the above -referenced Operational Agreement, complete with exhibits. The Agreements were approved by the Okeechobee Utility Authority Board at its meeting on February 14. Please agenda the consideration and approval of these Agreements for the City Council's next available meeting and provide us notice as to time and place so we may schedule to be in attendance. Upon execution, please return an original Agreement to us. If you have any questions, please feel free to call me. As always we appreciate your cooperation and assistance. With best regards, I remain, since ly you, Mon MDM/dj Enclosure cc: Rim Love c:\mdm\20121dj.61 IN .14WN0 CDIIMT' DEAN, MEAD, EOERTON, BLDODwORTH, E A N DEAN, MEAD, SvIELvoDEL, GoLDr4AN S BOYD CAPOUANO 5 B02ARTN, P.A. 660 6 ,.,,,, M E A D ,.oT, ..a.s»a•w� o,...00.po71 7n-.an t OPERATIONAL AGREEMENT BETWEEN OKEECHOBEE UTILITY AUTHORITY AND THE CITY OF OKEECHOBEE FLORIDA THIS AGREEMENT, made and entered into this day of , 1995, by and between the OKEECHOBEE UTILITY AUTHORITY, hereinafter referred to as "Authority," and the CITY COUNCIL OF THE CITY OF OKEECHOBEE, FLORIDA, a municipal corporation existing under the laws of the State of Florida, hereinafter referred to as "City." W I T N E S S E T H: WHEREAS, on November 10, 1994, the Board of County Commission- ers of Okeechobee County, Florida ("County"), and the City entered into an Interlocal Agreement creating the Okeechobee Utility Authority ("Interlocal Agreement"); and WHEREAS, the Authority was created for the purpose of acquiring, owning, operating, and maintaining a regional water and wastewater system to ensure an adequate future water supply and wastewater services for the citizens, residents and utility consumers located within all of the designated service areas of the Authority; and WHEREAS, the Authority constitutes a separate legal entity, which has those powers, duties, and responsibilities set forth in the Interlocal Agreement; and WHEREAS, pursuant to Article X of the Interlocal Agreement, the parties hereto recognize and acknowledge that a Master Transfer 2/16/95 11:51am s Agreement for further implementation of the Authority is intended to be prepared and executed prior to Closing, as hereinafter defined; and WHEREAS, the Master Transfer Agreement shall provide that no transfer of assets from the County, City, or Okeechobee Beach Water Association, Inc. ("OBWA"), shall occur prior to Closing, and that the transfer of assets from the County, City and OBWA to the Authority shall occur simultaneously at Closing, which shall occur on or before October 1, 1995; and WHEREAS, the Master Transfer Agreement shall also set forth the terms and conditions of the transfer to the Authority at Closing of all of the assets which comprise the utilities systems now operated by the City ("City Utilities") within its designated Service Areas; and WHEREAS, pursuant to Article XI of the Interlocal Agreement, the County or City may withdraw from the Authority, at any time prior to Closing, under the terms specified thereunder; and WHEREAS, the Authority and the City desire to enter into an interlocal agreement, pursuant to the provisions of Chapter 163, Florida Statutes, to provide for the continued operation of the City Utilities within its designated Service Areas until Closing, as specified under Article V of the Interlocal Agreement. NOW, THEREFORE, for and in consideration of the premises and the mutual agreements hereinafter set forth, the Authority and the City hereby agree as follows: 2/16/95 lls51em 2 ARTICLE I CERTAIN DEFINITIONS 1.1. The following terms shall have the following meanings when used herein: Agreement: "Agreement" shall mean this Agreement, together with all the exhibits attached hereto, as amended from time to time. Authority: "Authority" shall mean the Okeechobee Utility Authority, a separate legal entity. Authority Board: "Authority Board" shall mean the governing body of the Authority, acting for and on behalf of the Authority. Authority Service Areas: "Authority Service Areas" shall mean those areas to be served by the Authority as delineated under the Interlocal Agreement. City: "City" shall mean the City of Okeechobee, Florida, a municipal corporation existing under the laws of the State of Florida. City Utilities: "City Utilities" shall mean the Water System and Wastewater System now operated by the City within its designated Service Areas. Closing: "Closing" shall mean the consummation of the transaction contemplated by the Interlocal Agreement, as herein- after defined, to be effectuated under the Master Transfer Agreement, as more particularly set forth in Article X of said Interlocal Agreement. 2/16/95 11:51am 3 County: "County" shall mean Okeechobee County, Florida, a political subdivision of the State of Florida. District: "District" shall mean the area within all of the Authority Service Areas, as those areas may be expanded or contracted in accordance with the provisions of the Interlocal Agreement and the laws of the State of Florida. Environmental Permits: "Environmental Permits" shall mean all licenses, permits, and other approvals from any government or governmental agency, whether federal, state or local, necessary for the acquisition, construction or operation of the City Utilities. Interlocal Agreement: "Interlocal Agreement" shall mean the Interlocal Agreement between the County and the City dated November 10, 1994, recorded in Official Records Book 360, Page 1684, Public Records of Okeechobee County, by which the Authority was created. Master Transfer Agreement: "Master Transfer Agreement" shall mean that agreement between the County and the City concerning further implementation of the Authority, as more particularly set forth in Article X of the Interlocal Agreement. OBWA: "OBWA" shall mean the Okeechobee Beach Water Associa- tion, Inc., a Florida not -for -profit corporation organized for the purpose of, and currently engaged in, constructing, maintaining and operating a Water System for the supplying of water for domestic, commercial, agricultural, industrial and other purposes to its members, within a specified service area. 2/16/95 11:51am 4 OBWA Utility: "OBWA Utility" shall mean the utility system now being operated by OBWA within its specified service area. Service Areas: "Service Areas" shall mean those areas served, or which may be served, by the City Utilities, during the term of this Agreement, as delineated on Exhibit "A," attached hereto and incorporated herein by this reference. Wastewater System: "Wastewater System" shall mean and shall include any plant, system, facility or property, and additions, extensions and improvements thereto, constructed or under construc- tion, or at any future time constructed, which are useful or necessary or having a present capacity for future use in connection with the collection, treatment, purification and disposal of sewage of any nature or originating from any source, and shall include, but not be limited to, transmission and distribution facilities, treatment plants, wastewater and sanitary sewer collection, transmission, pumping, reuse and disposal facilities of every kind and description whatsoever, including without limitation, all trade fixtures, leasehold improvements, storage tanks, lift stations, force mains pumps, pump stations, generators, controls, collection and transmission pipes or facilities, valves, meters, service connections, and all necessary appurtenances and equipment, all wastewater mains and laterals, and shall include all real and personal property and any interest therein, rights, easements, and franchises of any nature whatsoever relating to any such system and necessary or convenient for the operation thereof. 2/16/95 11:51am 5 I f Water System: "Water System" shall mean and include any plant, system, facility or property, and additions, extensions and improvements thereto constructed, under construction, or at any future time constructed, or acquired as part thereof, useful or necessary or having the present capacity for future use in connection with the development of sources, treatment or purifica- tion, and distribution of water, and, without limiting the generality of the foregoing, shall include wellfields, dams, reservoirs, storage tanks, mains, lines, valves, pumping stations, laterals and pipes used for the purpose of carrying water to property connected with such system, and shall include all real and personal property and any interest therein, rights, easements and franchises of any nature whatsoever relating to any such system and necessary or convenient for the operation thereof. ARTICLE II EXHIBITS 2.1. There are attached to this Agreement as Exhibits "A" through ttC, " certain lists and documents which contain information, representations, and covenants of the Authority or City which are integral and essential parts of the transaction described in this Agreement, and are listed as follows: Exhibit "All: Depiction of current City Utilities Service Areas. Exhibit "B": Schedule of City Utilities rates, fees or other charges, during the term of this Agreement. 2/16/95 11t51em 6 Exhibit "C": Budget of the City Utilities for the term of this Agreement. ARTICLE III INTERIM OPERATION OF CITY UTILITIES 3.1. The City is hereby authorized by the Authority to continue the operation of the City Utilities within its respective Service Areas, as described and shown on Exhibit "A," until Closing, pursuant to the terms and conditions of this Agreement. 3.2. Any and all obligations, duties, or liabilities of the City created under this Agreement shall be deemed contingent upon the execution by OBWA of an Operational Agreement with the Authority. ARTICLE IV OPERATION PENDING CLOSING 4.1. Until Closing, the City shall continue to operate the City Utilities within its designated Service Areas under the provisions of Chapter 18, Water and Sewer Regulations, Code of the City of Okeechobee, Florida. 4.2. The City agrees not to amend, prior to Closing, any of the terms or provisions of Chapter 18, or other rules or regula- tions concerning the operation of the City Utilities without prior notice of said amendments being provided to the Authority. 2/16/95 lls5lam rJ 4.3. The City shall properly maintain all assets and facilities of the City Utilities within the custom and usage of the industry through the date of Closing. 4.4. The City shall bear all of the risk of loss for all of the assets and facilities of the City Utilities until Closing. 4.5. The City shall reasonably cooperate with the Authority by providing access to records and facilities, and providing technical assistance in acquainting the Authority with the operation of the City Utilities pending the date of Closing. 4.6. The Authority Board shall have final authority to resolve any disputes that may arise during the term of this Agreement between the City and OBWA concerning the location of line extensions, and other related matters, pursuant to the provisions of Article V of the Interlocal Agreement. 4.7. After execution of the Master Transfer Agreement, the City shall undertake to amend all Environmental Permits it holds in connection with operation of the City Utilities in order to transfer said Environmental Permits to the Authority as of the date of Closing. ARTICLE V RATES, FEES AND CHARGES 5.1. The schedule of rates, fees, and other charges described and shown on Exhibit "B" shall remain in effect for services provided by the City within its respective Service Areas, as 2/16/95 11s51am 8 described and shown on Exhibit "A," from the effective date of this Agreement through the date of Closing. 5.2. Any proposed adjustments to the City's rates, fees, and other charges for the provision of services by the City Utilities shall be submitted to the Authority for its prior information. The Authority shall have the ability to provide information to the City, but the Authority shall not disapprove, modify, or amend the City's rates, fees, and other charges, pending Closing. 5.3. After Closing, the Authority Board may revise the schedule of rates, fees, or other charges, from time to time, based upon the criteria set forth in Article VI of the Interlocal Agreement. ARTICLE VI BUDGET AND FUNDING 6.1. The budget for continued operation of the City Utilities covering the period from the effective date of this Agreement through September 30, 1995, shall be as set forth in Exhibit "C." 6.2. In the event it becomes necessary for the City to amend the above -described budget prior to September 30, 1995, the City shall provide prior notice to the Authority of any proposed amend- ments to said budget, for its review and input. 6.3. The City shall maintain its respective City Utilities operation and maintenance accounts for purposes of paying its obligations and liabilities, through the date of Closing. At all times during the term of this Agreement, the rights of the 2/16/95 11t51em 9 creditors and obligees of the City who are to be paid from the operation and maintenance accounts of the City Utilities shall be prior and superior to the rights of any other creditors and obligees of the City who are to be paid from the fees, rates, and other charges of said City Utilities. 6.4. Except to the extent currently authorized as of the date of this Agreement, the City shall not pledge any payments, income or revenues derived from the provision of services by the City Utilities during the term of this Agreement, without prior written approval by the Authority. The Authority shall not unreasonably withhold such approval. ARTICLE VII DEFAULT 7.1. Either party to this Agreement, in the event of or act of default by the other, shall have all remedies available to it under the laws of the State of Florida, including, but not limited to, injunction to prevent default or specific performance to enforce this Agreement, subject to state law. The rights of the parties shall be considered cumulative and shall not be waived now or in the future by the exercise of any rights and remedies provided under the terms of this Agreement and authorized by law. ARTICLE VIII INDEMNIFICATION 8.1. Neither party hereto waives sovereign immunity, except that consistent with all applicable state law, including, but not 2/16/95 11t51am 10 limited to Chapter 768, Florida Statutes, the parties agree to hold each other harmless for the negligent acts, or failure of per- formance under this Agreement, by itself, its officers, agents, and employees, but only to the extent permitted by law. 8.2. If service provided hereunder is discontinued to a customer due to failure of the customer to pay for services provided, the party responsible for discontinuing service shall hold the other party harmless as to any and all claims or suits regarding such action. 8.3. The parties hereto specifically acknowledge that the Authority has not assumed any liability for the City's actions in operating the City Utilities, and will not assume any such liability until Closing. ARTICLE IX AMENDMENTS TO AGREEMENT 9.1. This Agreement may only be amended by the proper execution of an amendment hereto by the official action of the City Council of the City of Okeechobee and the Authority Board, during such time as they remain subject to the terms and provisions hereof. ARTICLE X EXECUTE IN COUNTERPARTS 10.1. This Agreement may be executed in counterparts, and each fully executed counterpart shall be deemed an original. 2/16/95 11:51am 11 ARTICLE XI SEVERABILITY 11.1. Any determination by a court of competent jurisdiction that any provision of this Agreement is illegal, void, or un- enforceable, shall not adversely affect the enforceability of any other provision of this Agreement, unless the provision determined to be illegal, void or unenforceable, is a provision relating to a significant item of consideration for the benefit of a party hereto. ARTICLE XII LAWS GOVERNING INTERPRETATION 12.1. This Agreement shall be controlled and interpreted according to the laws, rules and regulations of the State of Florida. ARTICLE XIII BINDING AGREEMENT AND ASSIGNMENT 13.1. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their respective assigns and successors by merger, consolidation, conveyance, or otherwise. ARTICLE XIv ENTIRE AGREEMENT 14.1. This Agreement supersedes any and all previous agreements or representations, either verbal or written, heretofore in effect between the parties, made with respect to the matters herein contained. 2/16/95 11z51am 12 ARTICLE XV DISCLAIMER OF THIRD PARTY BENEFICIARIES 15.1. This Agreement is solely for the benefit of the formal parties herein, and no right or cause of action shall accrue upon or by reason hereof to or for the benefit of any third party not a formal party hereto. ARTICLE XVI NOTICES 16.1. Any notice required or allowed to be delivered hereunder shall be in writing and shall be deemed to be delivered when either (1) hand delivered to the official hereinafter designated, or (2) when deposited in the United States Mail, postage prepaid, certified mail, return receipt requested, addressed to a party at the address set forth below, or at such other address as the party shall have specified by written notice to the other party delivered in accordance herewith: City: City of Okeechobee Office of City Administrator 55 S.E. Third Avenue Okeechobee, Florida 34974 Authority: Okeechobee Utility Authority c/o Interim Administrator Post Office Box 2033 Okeechobee, Florida 34973 2/21/95 9:12em 13 ARTICLE XVII AFFIRMATION 17.1. The City hereby affirms that, at a duly constituted meeting of the City Council of the City of Okeechobee, Florida, on the day of , 1995, it approved the terms of this Agreement and the execution thereof by the City. 17.2. The Authority hereby affirms that, at a duly constituted meeting of its Authority Hoard on the 14th day of February, 1995, it approved the terms of this Agreement and the execution thereof by the Authority. ARTICLE XVIII FILING 18.1. Upon execution of this Agreement, and any subsequent amendments thereto, this Agreement and such subsequent amendments shall be filed with the Clerk of the Circuit Court of Okeechobee County, Florida. ARTICLE XIX EFFECTIVE DATE 19.1. This Agreement shall be deemed effective immediately upon its execution by all parties, and filing pursuant to law. 2/21/95 9s02em 14 IN WITNESS WHEREOF, the Authority and City have executed this Agreement on the day and year first above written. ATTEST: OKEECHIBEE UTILITY AUTHORITY Secre ar Y Chairman ATTEST: By City Clerk c:\mdm\20121dj.oa AL An-, 7�IENCY JAO �/ \ )7 C- Authority Attorney CITY COUNCIL OF CITY OF OKEECHOBEE, FLORIDA By Mayor APPROVED AS TO FORM AND LEGAL SUFFICIENCY Okeechobee City Attorney 2/16/95 11t51am 15 EXHIBIT "A" Those properties located within the Designated Service Areas set forth under Chapter 18, Water and Sewer Regulations, Code of the City of Okeechobee, Florida. 2/10/95 1233p¢ 17 EXHIBIT "B" OR DUGK 360 FACE 1 I �3 RESOLUTION NO. 89-5 A RESOLUTION ESTABLISHING A SCHEDULE OF RATES, FEES AND CHARGES FOR WATER AND WASTEWATER SERVICES; PROVIDING FOR AN EFFECTIVE DATE: BE IT RESOLVED by the City Council follows of the City of Okeechobee, Florida, as follows: SECTION ONE: Pursuant to section of the Code of Ordinances of the City of Okeechobee, the following schedule of rates, fees and charges for water and wastewater services shall be: A. WATER RATES AND FEES: CITY COUNTX 1. Monthly Water volume gallons, all gallons, charge per 1000 all $ 1.70 $ 2.13 meter sizes Monthly Conservation Residential only surcliarae $ 2.13 $ 2.67 all gallons, all meter sizes. gallons over 15,000 2. Minimum Service Char e: MONTIILY AMOUNT Meter Size CITY COUNTY 5/8" X 3/4" - $ 3.10 $ 3.88 1" 7.75 9.70 15.50 19.40 2° 24.00 31.04 3" 49.60 62.08 4" 77.50 97.00 6" 155.00 194.00 8" 240.00 310.00 3. Water Connection Fees: Meter Size 5/8" X 3/4" CITY COUNTY $ 500.00 $ 625.00 lot 1,250.00 1,562.50 1-1/2" 2,500.00 3,125.00 291 4,000.00 5,000.00 3" 0,000.00 10,000.00 411 12,500.00 15,625.00 6" 25,000.00 31,250.00 01, 40,000.00 50,000.00 Whe-r-e-a-deve-l-eper-1 ias—i-n s b3:-1 aed-t-h i t- a-m.,,n-wae-r—l-i-n a e-and-p-r-ev-ided-t-h e r— w&te-sew--iee---1-3-ne- lnelu"ng—t-he—eu-tz - f— and —meter —bem, all -1-n aeee-r-d,anee-w-i-t-Ir-Gi-t-y-Spee4r€-iea-then-a-a-nd-a t--ne-empense-te-the-Gi by pr-e i-ded nSe et ens-18--32-and I 32T-he-re-1rrr—Tfie --- eerrnee-t-3-en-€ee-ward be re eeof the-abeve-een-nee4-ien-fees ie Resolution 92-5 2-4- 1 EXHIBIT "B" 92 OR PACE 4. Backflow Prevention Fees Meter Size CITY COUNTY 5/8"X3/4" $ 225.00 $ 281.25 1" 275.00- 343.75 350.00 437.50 2" 425.00 531.25 Fees for Backflow Prevention Devices shall be added to above connection fees. Backflow prevention devices shall be required for all premises likely to have cross connections. The type of device used will be determined by the director. Fees for Backflow Prevention Devices larger than two (2) inch shall be calculated by the Department of Public Utilities and price shall be based upon the cost of materials, labor, equipment plus 25% for all services outside city limits and an administrative charge of 15% of total cost. 5• Water System Capacity Tees: CITY COUNTY Meter Size 5/8"X3/4" $ 500.00 $ 625.00 1" 1,250.00 1,562.50 1-1/2" 2,500.00 3,125.00 2" 4,000.00 5,000.00 30,000.00 10,000.00 41t 12,500.00 15,625.00 619 25,000.00 31,250.00 a„ 40,000.00 50,000.00 6. Wholesale Water Treatment: Wholesale water treatment rate is based $ upon the metered water volume charge per 1000 gallons all gallons, all meter size Minimum Service Charge: Meter Size 201 CITY COUNTY 1.10 $ 1.30 MONTHLY AMOUNT CITY COUNTY $ 400.00 $ 500.00 3 800.00 1,000.00 41# 1,200.00 1,500.00 610 2,400.00 3,000.00 Fees for sales for resale for meters larger than 6 inch shall be based upon total water requirements. E BOGK 360 and (30 7 . Rmp,-eT m ---- -,.,..� .�u.�wlar a for Water Conservation: Surcharge to be applied to water gallonage rate per 1000 gallons whe deemed necessary by Lhe City Council. Percent Reduction in Water Usage Required Percent Surcharge Applied Gallonage Charge 0% 0% 10% 25% 25% 50% 50% 100% Mobile homes, townhouses, apartments and ..recreational individual meters will be considered as residential units. vehicles on e• Customers without city water meter service which connect t Wastewater System shall pay the following connection fees. ° the City be for the installation of a water meter in the water line from to the building to measure the volume of water an The fee shall calculate the sewer charges. These charges in lieu of chargesthe well Section A, 03 and 04 d shall listed in l be used to Size of Meter CITY CONY 5/8" X 3/4" 1" $ 100.00 $ 125.00 All Others 150.00 107.50 Set- by Director of Public Utilities II• WASTEWATER RATES AND FEES: CITY COUNTY 1• Wastewater volume charge per 1000 gallons all gallons, all meter sizes $ 2.24 $ 2.80 2• Monthly Service Charge: Meter Size CITY COUNTY 5/8"X3/4" ' $ 8.95 $ 11.19 1" 22.30 27.98 44.75 55.95 2" 71.60 89.52 3" 143.20 179.04 401 223.75 279.75 611 447.50 559.50 8" 716.00 895.00 10" 2,461.25 3,076.50 3 OR 3• Wastewater Connection Tees: DUCK 360 PAcEl (31 Size of Sewer Service CITY 4" COUNTY$-G30, 00-- $30G. 00 $ 7a $302.00 G" $ -7-60-, ao- $765. 00 $-9r0-rpA- $95G.2 5 Connection fees for connections larger than 6" shall be water requirements. based upon total Wi'e�r-e--a -d e-ve4: eper--has—i n'st-,a3-fed-t li e-ma Win-sewer-�-kne sewer ser-v--.gee---�j}e-�-t-he-per-eper-t _ s--rnd-pr-ev"ed-t-he 8pee-i-lea-t-i-ena'--a-t-ne—enpease-�-e l n--eeeercianee-wi�tli--G 3" �.�-13e-eennee-t-3-on--fee�we d-b reS"ided-�n-See`t-gene-fig... abev�e-een-nee-t4en-fees,.- ie Resolution 91-5 11-5-991re92-5 2-4g2 # e 4• Wastewater S stem Ca aeit Tees: Meter. Size CITX CO-- LINTY 5/8 " X 3 / 4 " $-9-5-4T0-8- $ 959.00 $--'�g.g- $ 573.75 1" ,-o- 2,400.00 __.�n n� �-T- 3, 000.00 , 1-1/211 f300.00--�_n�� n 2 �-- 61000.00 3" �r�7 n 7,680.00 -9r-,-g�-- 9, 6 0 0.0 0 14,490.00 �a9(eL OLa 10,000.00 4" 6" 24,000.00 ,1974j2,&4_ 30,000.00 4a AO�A9- Sol40,000.00 rrg "-- G0,000.00 �B A- 76,000.00 9674 g.g_,_0-9- 96,000.00 10" 110,400.00 130,000.00 I2" 172,000.00 216,000.00 5• Wholesale Wastewater Treatment: Wholesale wastewater treatme is based upon the metered consum tione per CITY COUNTY 1000 gallons of wastewater flow per $ 1.60 $ 2.00 Miniinum Service Char e . MONTHLY AMOUNT Meter Size CITY COUNTY 2" $1,100.00 $ 1,375.00 311 2,200.00 2,750.00 410 3,300.00 4,125.00 6" 6,600.00 0,250.00 Tees for wholesale treatment for meters larger than G inch shall be based upon total wastewater requirements. n 7. JM Bo 3Ga PACE 132 Reclaimed Water: CITY Volumetric charges for reclaimed water shall be based upon metered consumption •16 per 1000 gallons and billed monthly. Sepi:age: Septage charges per 1000 ctallons • $ 100.00 Industrial was To be determined on an individual basis according characteristics of wastewater by special agreement. COUNTY $ .20 $ 125.00 to volume and 9. High Strenatli Industrial Wastewater Surcharge: `1'o be determined characteristics of on all individual basis wastewater by according to volume and special agreement. C. Capital Recov©ry Coat- (Dahl Servicot !•iONT1ILY AMOUNT Meter Size 5/0„ X 3/4 CITY $ 10.00 COUNTY 12.50 1" _ 125.00 15_5 1-1/2 250.00 312.50 2" 375.00 4G8.75 3" 750.00 937.50 4" _1.250.00 1_, r 62.50 G" � `'� 3. 125.00 a„ _4.562.00 5.703.12 011 _7.375.00 9,218.75 121# 10.750.00 13.437.50 Tees for capital recovery costs for meters larger than 6- 4 -inch shall be based upon total writer requirements. ie, 11-6-90, ie, 6-10-91, ie, 7- 19-94 D. TIRE PROTECTION EQUIPMENT FEES: 1. Sole Proprietary Tire Protection Systems: (Sprinkler Systems) Size of Service Monthly Amount CITY COUNTY 411 $ 35.00 $ 43.75 611 70.00 07.50 a.. 150.00 107.50 10" 300.00 375.00 1 2. . Maintenance fee for fire hydrants in the County that have been accepted by the County. $120.00 per hydrant per year. 5 OR ehcE 113�3 BOCK , 3 • The charges for temporary water service delivered through meter shall be as follows: 9� a fire hydrant CITY COUNTY a• Set-up charge b. Monthly availability charge $ 50.00 $ 62.50 C. d• Consumption per 1000 gallons 30.00 37.50 Meter relocation per move 2.00 2.50 e. Removal of meter by other than City Forces 25.00 100.00 31.25 f. Penalty for unauthorized taking of water from hydrant, in 300.00 125.00 addition to consumption charge (consumption to be 375.00 estimated by Director of .Public Utilities) G. Special Service CharaA s Ir Per Occurrence 1• Turn on for new customer CITX COUNTY 2• $ Turn off at customer request 10.00 $ 12.50 3• Final Notices mailed to delinquent accounts 10.00 12.5000 4. Reconnecting water service after such service has been turned off 10.00 12.50 at customer request and before meter removed 5. Turn off for delinquent in bill or failure to increasedewater 10.00 pay deposit as required 12.50 6• Reconnecting water service after payment of a delinquent bill or 10.00 12.50 payment of increased water deposit when service has been turned off and before meter is removed 7. Performance of any of above services after 30.00 regular office hours 37.50 8. Turn water off and remove meter at customer request for more than 30 days and less than 365 days in order to discontinue monthly service availability charges and garbage fees. a. 5/8"X3/4" Meter b. 1" meter' 40.00 50.00 c. All others 60.00 75.00 100.00 125.00 9. Install meter and turn water on within 365 days after disconnection was done at same customers request at which time monthly service availability charges and garbage fees will resume. 1 10. a. 5/8"X3/4" Meter b. 1" meter 40.00 50.00 C. All others 60.00 75.00 100.00 125.00 Install meter and turn water on for any customer after 365 days where water was discontinued and meter removed. Same fees for new water and or sewer service G 11. 12. Meter reread at customers request a. Standard scheduling b. By appointment c. No charge for discrepancy of 10,000 gallons or more Testing water meter at customers request a. Test result showing meter reads high (fast) b. Test results showing meter reads correctly or below (slow) 5/8"X3/4" Meter 1" Meter 1-1/2" Meter 2" Meter Above 2" Meters 13. Illegal turn -on or tampering with water meter; per occurrence service line to be removed after second occurrence at same location and same occupant. 14. Reinstallation of service line after removed due to repeated illegal turn on or tampering with service 15. Developer or owner changing meter from one location to another without permission of Utility department; per occurrence 16. 17. 1 18. 1 19. 120. Destruction of meter and/or related equipment BOOK 366 PncE1134 20.00 25.00 30.00 37.50 No Charge 25.00 31.25 35.00 43.75 50.00 62.50 75.00 93.75 Set by Director of Public Utilities 50.00 62.50 Same fees for new water and/or sewer service 50.00 62.50 Charge based upon actual replacement cost (labor and materials) plus a 15% administrative charge or $100.00 whichever is greater; per occurrence Returned Check $15.00 or 5% of the amount of the check, whichever is greater plus other applicable fees in the event service is discontinued. Account record history, requested by customer a. 12 months or less b. Over 12 months Recording of easements, annexation agreements, etc. Project plan review $3.00 per record $2.50 per 1/4 hour or fraction thereof $10.00 each page The Public Utilities Department will review all plans and specifications of all proposed extensions and or developments and owner or developer will pay a one time fee $10.00 per page of drawing Project plans will not be approved until full payment of the fee is received by department 7 M OR 360 Pnur-1735 21. Project Inspection All projects must be inspected by the owner or developer shall fees utilities department and the pay at during regular office hours and 1-1/2 office hours billed the rate of $20.00 per hour times that rate after regular monthly and paid before C.O. is approved. 22. Miscellaneous charges for service not included above Actual cost of materials and labor required plus an administrative charge of 15% or $25.00, whichever is greater 23. Billing and collection of utility fees for others or third party billing a. Initial set-up charges create a file computer program maintenance .$5.00 per account accounting services $2.50 per 1/4 hour $2.50 per 1/4 hour b. charge for billing $1.00 per account 24. Delinquent fee on inactive and unpaid accounts 1.5% per month on delinquent amount due 25. Deposits for Services (minimum) ie, 11_6-90, 2-4-92 Bel dent3-a-i-W blr-Garbage-Ser-�ratee-----__��-3t Wa-ter_-eerv�ee-9 T►a'tcr—�'�VCiI�p "" ' c [� /► /� 'A—�4'�i-215-14G s4-de:rc cr4__Ga7Ebage-Se-r-v 4ree-And --- $ 3 '► r itA— V�-H tt Eemmere4ra�-J Al-1-eemmerel-a-l-aeegu at-e-a.-ne-lu d-i-ng-e ei-n-laaendr-y--&nd--i nd u-&t-r-ieI eenaumer-s-eha yam' 'be-r-equ-i-red-te-ma4ee-e-•tee-�e,"epes4t-w14h-the Get-y-be4=ere-u t-eervi-ee-i:s-��tended--and-proveded-and-t-he depee'rt---sh'-ig:-ameun-t-te-ne-4_est� men-t#s-bill eemp.-ed-f-r-em-pae-t-}i-i-s.teri ea-1-4;.-fer-ma-t-i:en7-er-en �-#�e--bas�-e--ems negeta�-t�erts-be-tween-the-E-.rt-y-and-t-he-par-t-�-e�� eemmer-e!e-aeeedeti-nv-e-1 d7--bu-t i-n-ne-even-t-e.hallthe-depeei-t be-fees-t-lien-eeverrt-y-f--i-ve-(4 -}-des-w t4i 8n4y-ene-ee-r-vyree a�d-e n e---lion d-wed-f-�-i: - -( A }-de'l ars-w tli--wat-ems-and--eewe3r- s='tee•- Resolution 92-5 2-4-92 Iu. 5/8"X3/4" METER CITY Water Service Only $ 50.00 Wastewater Service Onlv $ 50.00 Water and Wastewater Service $ 100.00 Ib. WATER OR WASTEWATER SERVICE ONLY METER SIZE 1" 1 1 2" 2„ 361 4" 6" 811 10" 12" CITY $ 312.50 $ 625.00 $ 11000.00 $ 1,075.00 $ 3,125.00 $ 6,250.00 $10,000.00 $14,375.00 522,500.00 COUNTY S 62.50 $ 62.50 125.00 COUNTY $ 390.62 $ 781.25 $ 1,250.00 $ 2,343.75 $3,906.25 $ 7,812.50 $12,500.00 $17,968.75 $28,125.00 R '3C a c. WATER AND WASTEWATER SERVICC METER SIZE CITY COUNTY 1" 11 2 $ 625.00 $ 781.25 $ 1,250.00 $ 1,562.00 3 �� $ 2,000.00 $ 2 , 500.-00 4" S 3,750.00 $ 4,687.50 6„ $ 6,250.00 $ 7.812.50 $12,500.00 $15,625.00 10 $20,000.00 $25,000.00 12" $28,750.00 $35,937.50 $45,000.00 $5.6',250.00 d. RESIDENTIAL GARBAGE SERVICE IN THE CITY ONLY 35.00 26. Laboratory Test By City The Public Utilities Department may perform developer or individual at the following laboratory testing for a prices: Per Test A. B.O.D. B. Suspended Solids $ 15.00 C. Chlorine Residual 12.00 D. Fecal Coliform 5.00 E. Total Coliform 15.00 F. Chloride 15.00 G. Fluoride 12.00 H. pH - 10.00 I. Total Dissolved Solids 3.00 6.00 J. Dissolved Oxygen 5.00 K. Turbidity 7.00 The above testing will be done in the city,s laboratory. Any other testing will be sent to a certified lab and the developer or individual will be billed the cost for the testing plus a 15% administrative charge. All samples must be delivered to the city lab in approved containers. If the city collects samples or perform testing in the field then actual cost of labor plus a 15% administrative charge will be added to above fees. (SECTION TWO: This resolution shall take effect with consolidated bills rendered November 1, 1989 and thereafter; and to all agreement approved by the City Council on September 19, 1989 and thereafter. Seal) ttest: ity Clerk z CITY OF OKEECHOBEE, FLORIDA Mayor OR * 360 rnrSystem 1131 Rates and Rate Structures The City has covenanted in the Resolution to fix, establish, revise, maintain and collect certain fees, rates, rentals and other charges for services and facilities of the System (the "Rate Covenant"). The level of rates charged to each class of customers for service is the subject .of periodic cost of service studies done by the City in conjunction with outside consultants. These studies evaluate the adequacy of the current rate schedules in complying with the Rate Covenant and covering anticipated expenses of operation, maintenance and administration, renewals and replacements, and in paying principal and interest on the System's debt obligations. Potable water charges for individually metered residential customers consist of three components: (1) a minimum service availability charge, (2) a capital recovery component for debt service, and (3) a volumetric water use rate. All customers pay the applicable minimum monthly availability and debt service charges, as set forth in the following tables, whether or not water is used. Service Availability Charges (Within City Limits*) Meter Size Water Sewer 5/8" to 3/4" $ 3.10 $ 8.95 1" 7.75 22.38 1-1/2" 15.50 44.75 211 24.80 71.60 3" 49.60 143.20. 4" 77.50 223.75 6" 155.00 447.50 8" 248.00 716.00 10" N/A 2,461.25 *Charges for customers outside the City limits are 25% higher. N/A=Not Applicable. 40 EXHIBIT "B" BOOK 360 Phu l I Capital Recovery Charges (for Debt Service) Inside Outside Meter Size City City 5/8" to 3/4" $ 8.50 $ 10.63 1" 85.00 106.25 1-1/2" 170.00 212.50 2" 255.00 318.75 3" 510.00 637.50 4" 850.00 1,062.50 6" 1,700.00 2,125.00 8" 3,100.00 3,875.00 10" 5,000.00 6,250.00 12" 7,300.00 9,125.00 Volumetric Water Use Rates The City's volume charges are $1.70 per 1,000 gallons, all gallons, all meter sizes for water ($2.13, outside City limits), and $2.24 per 1,000 gallons, all gallons, all meter sizes for wastewater ($2.80, outside City limits). The City has also enacted rates which incorporate a water consumption conservation surcharge (the "Conservation Surcharge"). The Conservation Surcharge applies to all gallons over 15,000 gallons, all meter sizes and is $2.13, inside the City limits and $2.67, outside the City limits. Billing and Collection Procedures The City bills and collects for water and sewer service on a monthly basis. All customers inside the City limits are billed on the 15th of each month and payments are due by the first of the following month. All customers outside the City limits are billed on the first day of each month and payments are due by the 15th of the same month. Prior to rendering service, the City requires a deposit of approximately two times the average monthly bill for the class of customer seeking utility service. In the event of customer non-payment of a utility bill, City service is subject to suspension after the 25th day of delinquency. Historically the City has not experienced material losses from nonpayment. Environmental Matters General. Operations of the System are subject to regulation by certain Federal, state and local authorities. However, Federal and state standards and procedures that currently regulate and control operations of the System may change from time to time as a result of continuing legislative, regulatory and judicial action. Therefore, there is no assurance that the potable water production and/or wastewater treatment 41 EXHIBIT "C" TILITIES EXHIBIT "C" 0 ty O 0 0 co 10 co �0 co ' :3 C G a EA 0 f�9 to 0 M W W W W W W W W W Cr 00 0% w W t-+ W r-+ F► G %O•A•LANt!tN 000t-ANNN O 0 0 0 0 0 0 N 0 0 ... .. 0 co c>t `� 0 CD A p a'p•��':ip ti0 v�i �► !1 y in Naq CD rI EA o 0 ti ti M C CD IA co 1-+ W N O N U7 kD U1 W W N Ob 01 N N N N O O N N Q N ►A W O W J tD W U1 O J m US 1 W U1 Y Cl J OD 1 O J O O N Ob O 1Db co Ul O Cn W J O lD W O co co 0 1 , 00 N 01 W N co 01 1-' ► ' N F� Ln In Ul N m W O O 01 00 Li J 1— Ln N O CDlD cl W O J O J J O I O Ut O W O Cl O kD CAO O O 01 O O O O O O O O O CA W O O O W O I O O O O O O O W "3 I.a I..► � ►-+ cn W tP N N J 01 CD F� N D. W Li a% N .P• N W O J Ul Ul N O W LnW •l�• m Ut N Ut Co O 6P W V 14 co O CD Ui OD W J J lD W M Cl Ut 1P Ch O Cl O 01 N l0 Oob. {-+ W Ut A O U7 co C7 Ui . O O O . Ul . O A O .A C71 W ►'' J N . . . . . . . . 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BW8840 Highway 78 West © Okeechobee, Florida 34974-9787 �1 813-763-3793 FAX 813-467-4335 Serving Customers in Okeechobee And Glades County January 13 , 1995 JQ N 16 1.995 Mr. Michael Minton Dean, Mead and Minton 1903 South 25th Street Suite 200 Fort Pierce, Florida 34947 Re: Okeechobee Utility Authority, Operational Agreement Dear Mr. Minton: The Board of Directors of this Association has reviewed the proposed Operational Agreement and submit the following comments: 1. Unless prohibited by law, we suggest that all parties, City, County and OBWA, sign the same document. 2. If separate documents are submitted, then a paragraph should be added to the effect that the obligations and liabilities of OBWA are contingent upon the City signing an operational agreement with the Authority, and a specimen draft attached. You will probably want to include a similar paragraph in the City's agreement. The point is that OBWA does not want to commit to any operational agreement until we know exactly the terms of the City's operational agreement. 3. The transfer of Environmental Permits, Section 4.6, should be cared for in the master transfer agreement. To amend the existing permits now would prove difficult to undo in the event the closing is not completed. 4. Section 7.2 providing for attorney fees must be deleted from the agreement . 5. We are concerned that Section 18.1 could create a cloud on the titles of the Association in the event the Authority is not. formed. The operational agreement makes reference to an obligation to transfer our system to the Authority. If t.}le operational agreement is recorded oil the public records, the pi obl em will become how to properly doc uillent that the agreement has fallen apart and the obligation to transfer has dissolved. OBWA sees no need to record the operational agreement and will not agree to such. Mr. Michael Minton January 13, 1995 Page 2 OB14A continues to request the publication of the proposed rates for the Utility Authority. If the rates are to be increased dramatically, the customers should be made aware of the proposed rates as soon as possible. OBWA also requests a copy for our files of all incoming or outgoing correspondence and documents concerning the Utility Authority that your. firm receives or generates, which are riot covered by an attorney/client privilege. Information is the key to making an informed decision. If: you intend to charge for the copies, please advise me of the rate to be charged. Thank you for your review and action on these matters. Yours Truly, L. C. Fortner, Jr. Superintendent LCF/pdv OPERATIONAL AGREEMENT BETWEEN OKEECHOBEE UTILITY AUTHORITY AND OKEECHOBEE BEACH WATER ASSOCIATION. INC. THIS AGREEMENT, made and entered into this day of , 1995, by and between the OKEECHOBEE UTILITY AUTHORITY, hereinafter referred to as "Authority," and OKEECHOBEE BEACH WATER ASSOCIATION, INC., a Florida not -for -profit corporation, hereinafter referred to as "OBWA." W I T N E S S E T H: WHEREAS, on November 10, 1994, the Board of County Commission- ers of Okeechobee County, Florida ("County"), and the City of Okeechobee, Florida ("City") entered into an Interlocal Agreement creating the Okeechobee Utility Authority ("Interlocal Agreement"); and WHEREAS, the Authority was created for the purpose of acquiring, owning, operating, and maintaining a regional water and wastewater system to ensure an adequate future water supply and wastewater services for the citizens, residents and utility consumers located within all of the designated service areas of the Authority; and WHEREAS, the Authority constitutes a separate legal entity, which has those powers, duties, and responsibilities set forth in the Interlocal Agreement; and WHEREAS, OBWA is currently authorized to operate and maintain a water system within certain portions of the unincorporated area 2/16/95 21iU am of Okeechobee County, Florida, pursuant to the franchise granted to OBWA by the County under Okeechobee County Ordinance No. 93-5; and WHEREAS, pursuant to Article X of the Interlocal Agreement, the parties hereto recognize and acknowledge that a Master Transfer Agreement for further implementation of the Authority is intended to be prepared and executed prior to Closing, as hereinafter defined; and WHEREAS, the Master Transfer Agreement shall provide that no transfer of assets from the County, City, or OBWA, shall occur prior to Closing, and that the transfer of assets from the County, City and OBWA to the Authority shall occur simultaneously at Closing, which shall occur on or before October 1, 1995; and WHEREAS, the Master Transfer Agreement shall also set forth the terms and conditions of the transfer to the Authority at Closing of all of the assets which comprise the utilities systems now operated by OBWA ("OBWA Utility") within its designated service areas; and WHEREAS, pursuant to Article XI of the Interlocal Agreement, the County or City may withdraw from the Authority, at any time prior to Closing, under the terms specified thereunder; and WHEREAS, the Authority and OBWA desire to enter into an agreement to provide for the continued operation of OBWA Utility within its designated Service Area until Closing, as specified under Article V of the Interlocal Agreement. 2 2/16/95 11sU am NOW, THEREFORE, for and in consideration of the premises and the mutual agreements hereinafter set forth, the Authority and OBWA hereby agree as follows: ARTICLE I CERTAIN DEFINITIONS 1.1. The following terms shall have the following meanings when used herein: Agreement: "Agreement" shall mean this Agreement, together with all the exhibits attached hereto, as amended from time to time. Authority: "Authority" shall mean the Okeechobee Utility Authority, a separate legal entity. Authority Board: "Authority Board" shall mean the governing body of the Authority, acting for and on behalf of the Authority. Authority Service Areas: "Authority Service Areas" shall mean those areas to be served by the Authority as delineated under the Interlocal Agreement. City: "City" shall mean the City of Okeechobee, Florida, a municipal corporation existing under the laws of the State of Florida. City Utilities: "City Utilities" shall mean the Water System and other utilities now operated by the City within its designated Service Areas. Closing: "Closing" shall mean the consummation of the transaction contemplated by the Interlocal Agreement, as herein- 3 2/16/95 11:32am after defined, to be effectuated under the Master Transfer Agreement, as more particularly set forth in Article X of said Interlocal Agreement. County: "County" shall mean Okeechobee County, Florida, a political subdivision of the State of Florida. District: "District" shall mean the area within all of the Authority Service Areas, as those areas may be expanded or contracted in accordance with the provisions of the Interlocal Agreement and the laws of the State of Florida. Environmental Permits: "Environmental Permits" shall mean all licenses, permits, and other approvals from any government or governmental agency, whether federal, state or local, necessary for the acquisition, construction or operation of the OBWA Utility. Interlocal Agreement: "Interlocal Agreement" shall mean the Interlocal Agreement between the County and the City dated November 10, 1994, recorded in Official Records Book 360, Page 1684, Public Records of Okeechobee County, by which the Authority was created. Master Transfer Agreement: "Master Transfer Agreement" shall mean that agreement between the County and the City concerning further implementation of the Authority, as more particularly set forth in Article X of the Interlocal Agreement. OBWA: "OBWA" shall mean the Okeechobee Beach Water Associa- tion, Inc., a Florida not -for -profit corporation organized for the purpose of, and currently engaged in, constructing, maintaining and 4 2/16/95 11:42am operating a Water System for the supplying of water for domestic, commercial, agricultural, industrial and other purposes to its members, within a specified service area. OBWA Utility: "OBWA Utility" shall mean the Water System now being operated by OBWA within its specified service area. Service Area: "Service Area" shall mean that area served, or which may be served, by OBWA Utility, during the term of this Agreement, as delineated on Exhibit "A," attached hereto and incorporated herein by this reference. Water System: "Water System" shall mean and include any plant, system, facility or property, and additions, extensions and improvements thereto constructed, under construction, or at any future time constructed, or acquired as part thereof, useful or necessary or having the present capacity for future use in connection with the development of sources, treatment or purifica- tion, and distribution of water, and, without limiting the generality of the foregoing, shall include wellfields, dams, reservoirs, storage tanks, mains, lines, valves, pumping stations, laterals and pipes used for the purpose of carrying water to property connected with such system, and shall include all real and personal property and any interest therein, rights, easements and franchises of any nature whatsoever relating to any such system and necessary or convenient for the operation thereof. 2/16/95 11:42� 5 ARTICLE II EXHIBITS 2.1. There are attached to this Agreement as Exhibits "A" through "C," certain lists and documents which contain information, representations, and covenants of the Authority or OBWA which are integral and essential parts of the transaction described in this Agreement, and are listed as follows: Exhibit "A": Depiction of current OBWA Utility Service Area. Exhibit "B": Schedule of OBWA Utility rates, fees or other charges, during the term of this Agreement. Exhibit "C" : Budget of the OBWA Utility for the term of this Agreement. Exhibit "D": Operational Agreement between the Authority and the City. . ARTICLE III INTERIM OPERATION OF OBWA UTILITY 3.1. OBWA is hereby authorized by the Authority to continue the operation of the OBWA Utility within its respective Service Area, as described and shown on Exhibit "A," until Closing, pursuant to the terms and conditions of this Agreement. 3.2. Any and all obligations, duties, or liabilities of OBWA created under this. Agreement shall be deemed contingent upon the execution by the City of an Operational Agreement with the Authority, in the form attached hereto as Exhibit "D". 6 2/26/95 11t42sm ARTICLE IV OPERATION PENDING CLOSING 4.1. Until Closing, OBWA shall continue to operate the OBWA Utility within its designated Service Area under the provisions of . 93-5, and Glades County Ordinance Okeechobee County Ordinance No No. 93-4, which are incorporated herein by this reference. 4.2. OBWA shall properly maintain all assets and facilities of OBWA Utility within the custom and usage of the industry through the date of Closing. 4.3. OBWA shall bear all of the risk of loss for all of the assets and facilities of OBWA Utility until Closing. 4.4. OBWA shall reasonably cooperate with the Authority by providing access to records and facilities, and providing technical assistance in acquainting the Authority with the operation of OBWA Utility pending the date of Closing. 4.5. The Authority Board shall have final authority to resolve any disputes that may arise during the term of this Agreement between the City and OBWA concerning the location of line extensions, and other related matters, pursuant to the provisions of Article V of the Interlocal Agreement. 4.6. After execution of the Master Transfer Agreement, OBWA shall undertake to amend all Environmental Permits it holds in connection with operation of OBWA Utility in order to transfer said Environmental Permits to the Authority as of the date of Closing. 7 2/21/95 11t18am ARTICLE V RATES, FEES AND CHARGES 5.1. The schedule of rates, fees, and other charges described and shown on Exhibit "B" shall remain in effect for services provided by OBWA within its respective Service Area, as described and shown on Exhibit "A, " from the effective date of this Agreement through the date of Closing. 5.2. Any proposed adjustments to OBWA's rates, fees, and other charges for the provision of services by OBWA Utility shall be submitted to the Authority for prior review. The Authority shall have the ability to provide information to OBWA, but the Authority shall not disapprove, modify, or amend OBWA's rates, fees, and other charges, pending Closing. 5.3. After Closing, the Authority Board may revise the schedule of rates, fees, or other charges, from time to time, based upon the criteria set forth in Article VI of the Interlocal Agreement. ARTICLE VI BUDGET AND FUNDING 6.1. The budget for continued operation of OBWA Utility covering the period from the effective date of this Agreement through September 30, 1995, shall be as set forth in Exhibit 6.2. In the event it becomes necessary for OBWA to amend the above -described budget prior to September 30, 1995, OBWA shall S 2121/95 llslOam provide prior notice to the Authority of any proposed amendments to said budget, for its review and input. 6.3. OBWA shall maintain its respective OBWA Utility operation and maintenance accounts for purposes of paying its obligations and liabilities, through the date of Closing. At all times during the term of this Agreement, the rights of the creditors and obligees of OBWA who are to be paid from the operation and maintenance accounts of OBWA Utility shall be prior and superior to the rights of any other creditors and obligees of OBWA who are to be paid from the fees, rates, and other charges of said OBWA Utility. 6.4. Except to the' extent currently authorized as of the date of this Agreement, OBWA shall not pledge any payments, income or revenues derived from the provision of services by OBWA Utility during the term of this Agreement, without prior written approval by the Authority. The Authority shall not unreasonably withhold such approval. ARTICLE VII DEFAULT 7.1. Either party to this Agreement, in the event of or act of default by the other, shall have all remedies available to it under the laws of the State of Florida, including, but not limited to, injunction to prevent default or specific performance to enforce this Agreement, subject to state law. The rights of the parties shall be considered cumulative and shall not be waived now or in 7 2/21/95 11:18am the future by the exercise of any rights and remedies provided under the terms of this Agreement and authorized by law. ARTICLE VIII INDEMNIFICATION 8.1. Except.as limited by Chapter 768, Florida'Statutes, the parties agree to hold each other harmless for the negligent acts, or failure of performance under this Agreement, by itself, its officers, agents, and employees, but only to the extent permitted by law. 8.2. If service provided hereunder is discontinued to a customer due to failure of the customer to pay for services provided, the party responsible for discontinuing service shall hold the other party harmless as to any and all claims or suits regarding such action. 8.3. The parties hereto specifically acknowledge that the Authority has not assumed any liability for OBWA's actions in operating the OBWA utility, and will not assume any such liability until Closing. ARTICLE IX AMENDMENTS TO AGREEMENT 9.1. This Agreement may only be amended by the proper execution of an amendment hereto by the official action of the Board of Directors of OBWA and the Authority Hoard, during such time as they remain subject to the terms and provisions hereof. 10 2/21/95 11118 M ARTICLE X EXECUTE IN COUNTERPARTS 10.1. This Agreement may be executed in counterparts, and each fully executed counterpart shall be deemed an original. ARTICLE XI SEVERABILITY 11.1. Any determination by a court of competent jurisdiction that any provision of this Agreement is illegal, void, or un- enforceable, shall not adversely affect the enforceability of any other provision of this Agreement, unless the provision determined to be illegal, void or unenforceable, is a provision relating toa significant item of consideration for the benefit of a party hereto. ARTICLE XII LAWS GOVERNING INTERPRETATION 12.1. This Agreement shall be controlled and interpreted according to the laws, rules and regulations of the State of Florida. ARTICLE XIII BINDING AGREEMENT AND ASSIGNMENT 13.1. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their respective assigns and successors by merger, consolidation, conveyance, or otherwise. 11 2/21/95 1191"M ARTICLE XIV ENTIRE AGREEMENT 14.1. This Agreement supersedes any and all previous agreements or representations, either verbal or written, heretofore in effect between the parties, made with respect to the matters herein contained. ARTICLE XV DISCLAIMER OF THIRD PARTY BENEFICIARIES 15.1. This Agreement is solely for the benefit of the formal parties herein, and no right or cause of action shall accrue upon or by reason hereof to or for the benefit of any third party not a formal party hereto. ARTICLE XVI NOTICES 16.1. Any notice required or allowed to be delivered hereunder shall be in writing and shall be deemed to be delivered when either (1) hand delivered to the official hereinafter designated, or (2) when deposited in the United States Mail, postage prepaid, certified mail, return receipt requested, addressed to a party at the address set forth below, or at such other address as the party shall have specified by written notice to the other party delivered in accordance herewith: 12 2/21/95 11:18am OBWA: Okeechobee Beach Water Association, Inc. Leland C. Pearce, President 8840 Highway 78 West Okeechobee, Florida 34974 Authority: Okeechobee Utility Authority c/o Interim Administrator Post Office Box 2033 Okeechobee, Florida 34973 ARTICLE XVII AFFIRMATION 17.1. OBWA hereby affirms that, at a duly constituted meeting of the Board of Directors of OBWA on the day of 1995, it approved the terms of this Agreement and the execution thereof by OBWA. 17.2. The Authority hereby affirms that, at a duly constituted meeting of its Authority Board on the 14th day of February, 1995, it approved the terms of this Agreement and the execution thereof by the Authority. 13 2/21/95 11:19&m ARTICLE XVIII EFFECTIVE DATE 19.1. This Agreement shall be deemed effective immediately upon its execution by all parties, and filing pursuant to law. IN WITNESS WHEREOF, the Authority and OBWA have executed this Agreement on the day and year first above written. OKEECHOBEE UTILITY AUTHORITY ATTEST: By Interim Administrator Witness Witness STATE OF FLORIDA COUNTY OF OKEECHOBEE By Chairman APPROVED AS TO FORM AND LEGAL SUFFICIENCY Authority Attorney OKEECHOBEE BEACH WATER ASSOCIATION, INC. By President The foregoing instrume95 was acknowledged before me this of day of 19' by OKEECHOBSSOCIATION EE BEACH WATER A , INC., a Florida not -for -profit corporation, on behalf of the corporation. He/she is personally known to me or has produced identification.• Notary Public, State of Florida Printed Name: Commission No.: My Commission Expires: 14 2/21/95 111181Lm JOINDER AND CONSENT THE BOARD OF COUNTY COMMISSIONERS OF OKEECHOBEE COUNTY, FLORIDA, consents to the execution of this operational agreement between Okeechobee Utility Authority and Okeechobee Beach Water Association, Inc. and shall not consider said agreement a default under the terms of the Okeechobee Beach Water Association franchise granted to OBWA by the County under Okeechobee County Ordinance 93-5. Said Consent shall not be construed to make Okeechobee County a party to said Agreement nor shall such Consent be deemed to be an amendment to Okeechobee County Ordinance 93-5 executed this day of , 1995. ATTEST: BOARD OF COUNTY COMMISSIONERS OF OKEECHOBEE COUNTY, FLORIDA By By Clerk Chairman CONSENT APPROVED AS TO FORM AND LEGAL SUFFICIENCY County Attorney