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Item T5BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 16 April 2003 Division: Growth Management Bulk Item: Yes No X Department: Marine Resources AGENDA ITEM WORDING: Approval of recommendations concerning engineering options for specific properties within Key West Resort Utility ITEM BACKGROUND: At the January 2003 regular BOCC meeting, the Commission heard from a number of individuals with complaints concerning connection requirements to facilities operated by Key West Resort Utilities (KWRU). The Commission requested that staff talk to property owners and the Utility to determine if any adjustments need to be made to the County's contract with the Utility to provide wastewater improvements concerning engineering options and uniform connection policy. PREVIOUS RELEVANT BOCC ACTION: July 2002 — Approval of a contract with KWRU to provide wastewater improvements on Stock Island January/February 2002 — Comments from property owners concerning KWRU CONTRACT/AGREEMENT CHANGES: None STAFF RECOMMENDATIONS; Approval of staff recommendations TOTAL COST: None BUDGETED: Yes No COST TO COUNTY: None SOURCE OF FUNDS: REVENUE PRODUCING: Yes No X AMOUNT Per Month Year APPROVED BY: County Atty X OMl�urchasing PLRisk Management X_� DIVISION DIRECTOR APPROVAL: ' Timothy McG , Director rowth Kaaa`gPn4nt DOCUMENTATION: Included _ To Follow Not R e,-ired DISPOSITION: AGENDA ITEM NO.: I/ BC030480.doc 03/27/03 6:43 AM Department of Marine Resources 2798 Overseas Highway, Suite 420 Marathon, Florida 33050 Voice: (305) 289 2507 FAX: (305) 289 2536 Email: larrettg(d�mail.state.fl.us or garrettceo(ahotmai l.com DATE: TO: FROM: SUBJECT: Memorandum Board of County Commissioners Mayor Charles "Sonny" McCoy, Dist. 3 Mayor Pro Tern Dixie Spehar, Dist. 1 Commissioner George Neugent, Dist. 2 Commissioner Nora Williams, Dist. 4 Commissioner Murray Nelson, Dist. 5 11 April, 2003 Board of County Commissioners George Garrett, Director of Marine Resources Findings and Recommendations for KWRU Introduction Based on concerns raised by property owners at the January Commission meeting concerning connection requirements with Key West Resort Utility (KWRU), the Board requested that staff consider the issues raised and provide recommendations back. Attached is a report augmenting this one from CH2MHill concerning the engineering design for the Key West Resort Utility area. It details the meetings that we held with the utility and provides an assessment of engineering options provided for each property within the Utility area. Included also, is a copy of a revised Utility Agreement as will be used to contract with property owners for service. This agreement was revised during discussion between the Utility, property owners, and the Public Service Commission. Staff supports the current and specific engineering design being used by the KWRU at this time. Staff has reviewed KWRU's Utility Agreement with revisions suggested by the Public Service Commission (PSC). Though staff has not done a thorough legal analysis of these documents, with changes made by the PSC, the document is workable. Further revisions may be necessary through negotiation with individual BC030481 04/08/03 2:54 PM property owners. Any disagreements may be resolved through the PSC. Staff will continue to monitor this aspect of KWRU management. Staff is putting forward a draft Uniform Connection Policy generally supported by KWRU and it has been reviewed by staff of FKAA and the Key Largo Wastewater Treatment District. Background In late July 2002 at a special meeting of the Board, the Commission approved a Contract with Key West Resort Utilities (Utility) to expand wastewater service to the remainder of south Stock Island not currently served by the Utility. Construction on the expanded wastewater project area began in October 2002 and has progressed rapidly. At the January Commission meeting, the Commission heard from a number of individuals, homeowner's associations, and private commercial property owners concerning connection to Key West Resort Utility. Most concerns revolved around technical requirements (engineering related) for connection to the utility and around the Utility and Service Agreements required by the Utility. Since the January Commission meeting, staff has met internally, with Key West Resort Utility, with a number of property owners, with the Florida Keys Aqueduct Authority, and has participated in a teleconference with the Public Service Commission. Staff has also talked with a number of individuals in telephone conversations about the project. The most recent meetings occurred as late as March 31, 2003. In total, staff has met with KWRU either at their offices or in the field, a five times. As staff brings this item forward to the Commission, we will be meeting with the Administrator and each Commissioner individually and will have begun a process to meet with each of the property owners concerning their options for connection to the Utility Issues Engineering DesiLyn Questions raised by property owners at January's Commission meeting were mirrored in documents provided by CH2MHill in July 2002. The concerns revolve mostly around the responsibility of parties for potential expenses, as they would be 2 incurred by the Utility in providing a Utility connection or by the property owner in preparing to acquire a connection. Questions were raised about the issues of "connection equity" or whether one property owner, in relatively similar physical circumstances to another property owner, would pay similar amounts to acquire a Utility connection over and above the Utility connection fees ($2,700 per Equivalent Dwelling Unit). In other words is there relative equity in the costs that would be incurred for on -site improvements in preparation to make a connection to the Utility? Staff has met with KWRU on five separate occasions. On three of these occasions, in addition to meeting at the KWRU offices, staff spent approximately half a day each in the field reviewing specific property characteristics. In addition to meeting with the Utility, staff requested that the Utility complete a cost assessment of several options (three, with the ultimate inclusion of a fourth — See Ch2MHill report) for each property in question (approximately 20). Staff requested that the Utility not consider property lines, but to assess total cost to provide service to each property based on the most cost effective and efficient engineering solution inclusive of engineering needs on each private property itself. Based on staff s assessment during on site visits, a complete review of engineering plans, and a thorough review of the cost projections for each property, staff at this point concurs with the general engineering design for the Key West Resort Utility project. Thus, the approach taken for provision of service (collection facilities and components) within the right-of-way as proposed or in fact completed by the Utility is appropriate. This is documented fully in the attached CH2MHill report. Utility and Service Agreements Staff was made aware of six complaints raised to the Public Service Commission (PSC) about Key West Resort Utility service agreements. On February 17, 2003, staff participated in a teleconference with the Public Service Commission to hear about and discuss issues raised by the complainants. Though there appear to be substantive issues concerning the content of contracts required by the Utility, they appear to be contractual legal issues that can best be resolved between PSC staff and the Utility or between the complainants and the Utility. At this time, suggestions concerning the content of KWRU utility and service agreements have been made by the PSC. As staff understands it, the suggestions K, of the PSC have been taken into account by KWRU and have been used to revise their user agreements. However, we also understand that there are still some concerns on the part of the PSC that not all suggestions were taken and, real or not, many property owners have continuing concerns about signing Utility Agreements. Most now revolve around issues of liability and insurance. In light of recent changes made by the KWRU, it is staff s opinion that the process of negotiation concerning the user agreements provided by KWRU should proceed between KWRU and private property owners with limited staff interaction or involvement. Our understanding indicates that these are things best left to the Utility, private property owners and the PSC — if intervention appears necessary. However, some continuing overview of the process may be reasonable, particularly if any significant issues are raised which are outside of the context of normal negotiation. The ultimate conclusion of an unsuccessful negotiation between the Utility and a private property to connect to the Utility system, becomes a Code Enforcement case before the County Special Master. This is a conclusion that staff believes should be avoided through continual monitoring of the process. Additional Comments It is clear that most of the concerns that arose in January before the Commission were issues involving public relations. Without being able to clearly appreciate the interaction that the Utility has had with the public, staff believes that more time should be spent discussing options with property owners. More time needs to be spent informing future users of the KWRU wastewater system, educating them about process, etc. Where some may be fully aware of options and process and are resistant to change and additional expense, others may have legitimate concerns, of simply be ignorant of options and process. There seems to be a lack of trust, based in part on a feeling amongst property owners that their interests aren't being adequately considered. Staff hopes that the time spent and that will continue to be spent working with the Utility has helped to clarify options and to build trust. At this time, we intend to continue working on this effort through individual meetings with the 20 or so property owners in the area under consideration currently. 0 Conclusions and Recommendations Engineering o Staff has extensively reviewed the KWRU construction engineering documents and concludes that the solutions that these documents present for each property are appropriate, in terms of cost, equity, practicality, and efficiency. Thus, staff has determined that each property is or will be negotiating their individual Utility Agreement on an "Even Playing Field." Some engineering options may be adjusted as negotiations occur, but it will be from a position of comparative balance and equity. There should be no need for further action on this issue. No specific recommendations necessary o After a number of site visits, staff concludes that many of the sites on Stock Island that will be asked to connect to KWRU, have significant deficiencies in their on -site wastewater systems (either septic tanks or treatment plants with internal collection systems). There will be significant cost associated with required on -site improvements over and above required connection costs. Staff recommends that the need for required on -site improvements be articulated with clarity to property owners. The difference between the cost of necessary on -site improvements and cost to connect to the Utility may not have been clearly differentiated. Staff recommends further that, property owners be advised immediately that they will need an engineer to design improvements or changes to components of on -site wastewater systems. In many cases, this will be required to certify needed changes and to obtain permits from the Department of Environmental Protection. Negotiations on specific issues involving engineering design will be enhanced with design professionals participating. Utility Agreement o Staff recognizes that significant discussion has occurred between the Utility, property owners and the Public Service Commission (PSC) concerning the 5 content of the Utility Agreement documents for KWRU. Staff also indicates that it is least comfortable with this aspect of its involvement to date. Recognizing that changes have been made to the Utility Agreement based on these discussions, staff concludes that it is best to remain outside this process which is clearly within the jurisdiction of the PSC, while continuing to monitor the process. Staff recommends that they continue to monitor the process of the Utility's negotiations with property owners and the ultimate conclusion in a signed Utility Agreement to insure that this process is not becoming bogged down. Particularly, the non-invasive effort to monitor this process will result in fewer Code Enforcement cases, which may result from simple entrenchment on issues. Other o Staff concludes in general that issues of trust underlie most of the problems that have occurred to date. Staff recommends that they continue as planned to meet with individual property owners to clearly inform them of their options for connecting to the Utility. We believe that a level of trust currently exists and that a sound working relationship exists between staff and the Utility. Staff and the Utility intend to attend most of these meetings as a team. o Staff recognizes and therefore concludes that financing is also a significant issue driving the concerns of property owners and of those who may be renting/or leasing homes within private properties not in their ownership. Staff recommends that they continue to work toward a general financing approach within this County sponsored private utility area as well as any others. Currently staff is working with Neighbors and Giblin to develop a coherent and comprehensive financing ordinance. This document is projected be before the Board for review in June. 51 Attachment 1 CH2MHill Report April 11 , 2003 Mr. George Garrett, Director Monroe County Marine Resources 2798 Overseas Highway, Suite 420 Marathon, FL 33050 Re: Evaluation of KW Resort Utilities Connection Policy Dear George: At the January 2003 BOCC meeting, the Commission heard from a number of individuals, homeowner associations, and private commercial property owners concerning connection requirements to the KW Resort Utilities (KWRU) sewer system expansion. The properties with connection issues are those with multiple units within small or large private properties. For the most part, all the units within a given property cannot be served by a single vacuum valve that would be located within the public right-of-way. Thus, the issues revolve around technical requirements (engineering related) for connection of these properties to the new sewer system and who should be responsible for the costs. County staff was directed to work with KWRU to resolve the issues. Since February 10, we have had five meetings with KWRU (in addition to four other meetings with other entities). At each meeting we have progressed further to a resolution that would provide the most equitable policy for all parties involved. Three of these KWRU meetings consuned the better part of the day. After these meetings with all parties, you, Weiler Engineering, and CH2M HILL inspected the sites in question. We evaluated the pros and cons of each of four connection alternatives, addressing the different issues and concepts at each site visit. Although time consuming, this degree of evaluation was necessary to "flush out' all concepts and address the equity issue in particular. These site visits provided the best backup and justification for the policies addressed herein. This letter summarizes the evaluation process that you instituted to resolve the issues and presents the results and conclusions of this evaluation process. In arriving at an equitable resolution, consideration must be given to: The condition of the existing private systems, where many are sub -standard and are susceptible to substantial infiltration and inflow (1/I), which overloads and stresses the treatment facilities. The fact that property owners are responsible for upgrading their sub -standard systems, at their cost, to industry and utility standards before they can connect their system into the utility sewer system. • The differences between the means of connection shown by KWRU documents provided to Monroe County, dated May 2002, and the means of connection shown by the documents used to construct the project. M. • The requirements of Monroe County Wastewater Connection Ordinance No. 04-2002. General Points The collection systems for some of these private properties would need a lot of work and would require considerable cost to upgrade. In fact, some collection systems may have to be totally replaced, at the owner's cost. The requirement that owners of private collection systems that are proposed to connect to a regional or community system (either a private or public utility) must upgrade their systems to the industry and utility standards is a standard of the industry. Once upgraded, the systems could remain private, or they could be taken over by the utility, depending on utility policy. Section 3.8.2 of the Wastewater Master Plan describes this process. The original KWRU documents (drawings) provided to Monroe County in June 2002 for review were dated May 21, 2002. These drawings showed many of the properties that now have issues were to be served by proposed buffer tanks that were be installed within the public right of way. Instead of buffer tanks, the drawings used for construction now show that some properties are being provided with a vacuum main stub at the property line. These properties are now required to install a vacuum system within their property and connect to the vacuum main stub. One of the concerns of the affected property owners may be that they feel they could have connected their private system relatively easily and inexpensively to a buffer tank as shown in earlier May 2002 drawings. Now they appear to be faced with a lot more cost and difficulty to install a vacuum system within their property. These property owners may not have recognized that they still would have been required to upgrade their gravity collection system (sewer mains and sewer laterals) to industry and utility standards before they are able to connect to the buffer tank. For some private collection systems, the upgrade costs of their gravity systems could be as much or more than the cost of a vacuum system. Exhibit 1 compares the proposed means of providing wastewater service connection to the properties at issue in the May 2002 drawings and in the drawings used for construction. The approach taken by County staff to arrive at an equitable resolution was to first consider the most practical, efficient, and cost effective system of connection without considering property lines per se and without determining who pays for what (i.e., alternatives must consider all costs, including repair or replacement of private collection systems to industry and utility standards before connecting to the utility system). After Monroe County and KWRU came to agreement on the best technical approach, guidelines for determining who pays for what, particularly as it might consider equity between properties and construction on private property, were evaluated. This step in the process is ongoing and site visits with each of the affected properties are still in progress. Participants in these site visits include KWRU, Monroe County, representatives from the property, Weiler Engineering, and CH2M HILL. Alternatives Different alternatives for connecting the properties at issue, mainly trailer parks, to the KWRU collection system were evaluated. KWRU and Monroe County mutually agreed upon four 9 alternatives as the most feasible. Costs for these four alternatives were estimated as if there were no property lines. Costs on both public and private property were included. Estimates for the cost of testing existing systems, repairs of systems, abandonment of cesspits and septic systems, lateral installation and other costs normally incurred by the property owner were included in the analysis. Costs associated with design, permitting, construction administration, connection fees, and etc. were not included. Four alternative means of connecting existing multi -dwelling -unit properties to the KWRU sewer system were considered. These are: Alternative 1: Installation of a vacuum sewer system within private park property (where feasible, use of the existing gravity collection systems to deliver wastewater to the vacuum valves on site was also considered under this alternative). This alternative is the means of connection required by KWRU construction drawings and the connection method that prompted representatives of affected properties to address the BOCC at their January 2003 meeting. Alternative 2: Use of the existing gravity collection systems to the greatest extent possible, with upgrades to the system as estimated by Weiler Engineering to meet industry and utility standards, and connection to vacuum valves located in the public right-of-way via metering PUMPS. Alternative 3: Use of the existing gravity collection systems to the greatest extent possible, with upgrades to the system as estimated by Weiler Engineering to meet industry and utility standards, and connection to the existing 8-inch force main or construction of new force mains within the public right-of-way. Alternative 4: Use of the existing gravity collection system to the greatest extent possible, with upgrades to meet industry and utility standards, and connection to vacuum valves located in the public right-of-way around the periphery of the property to the greatest extent possible. In this alternative, the modified and upgraded gravity collection system would be a series of mini - collection systems in that each collection system would only connect the number of properties that could be accommodated by one vacuum valve, on the average six dwelling units (mobile homes). This fourth alternative is not applicable to every property because of physical constraints in locating vacuum valves around the property periphery and in being able to connect only six units to a mini -collection system. The estimate of the amount of existing gravity sewer systems that must be upgraded was made by Ed Castle of Weiler Engineering. In our opinion, Ed is more qualified to estimate existing gravity system upgrade requirements than anyone else in Weiler Engineering, CH2M HILL, Monroe County, or KWRU in that Ed previously worked for Synagro. Hence, Ed was responsible for the operation and maintenance of all package plants that received flows from all the private collection systems on Stock Island, except for the Boyd's Campground facility. Capital cost estimates for each of the four alternatives were prepared by Weiler Engineering and CH2M HILL (CH2M HILL prepared Alternate 4 estimates), assuming there are no property lines, or no capital cost responsibilities between property owner and utility. CH2M HILL concurs with the engineering options and the cost estimates for all of the alternatives. The cost 10 estimates were developed from current prices for construction of the different types of collection system facilities and appurtenances in the Key West/Stock Island area. These costs were used consistently for all properties and for each type of system. One may argue that the costs are inaccurate (although we feel they represent current construction prices that would be paid), but since the costs were applied consistently to each property and each alternative, the margin of error (if there is one) for each property and each alternative is consistent, either higher or lower, so the relative cost or rank of each alternative would not change. Exhibit 1 shows the relative cost of the four alternatives, ranked from least costly to most costly. The cost estimates are not included with this report but are available to anyone who wishes to review them. Conclusion Our evaluation shows that the KWRU sewer system extension as ultimately constructed meets the requirements of the Monroe County Wastewater Connection Ordinance No. 04-2000. All properties with an estimated sewage flow of 1,000 gallons per day or less (single family residences, duplexes, quadraplexes, and small commercial establishments) were provided a vacuum valve, so sewage can flow by gravity from the unit or units to the vacuum sewage collection line (vacuum valve) that the utility has provided in the public right-of-way. Properties with an estimated sewage flow exceeding 1,000 gallons per day were provided with a means of connection, some with buffer tanks and some with a vacuum main stub for the property owner to extend a vacuum system on to his property. Note that Ordinance No. 04-2000 requires the utility to provide sewerage facilities within the public right-of-way so that the property or establishment can connect. However, the ordinance does not require the utility to provide sewerage facilities that would allow the property or establishment to connect to the utility system by gravity flow. The buffer tank or vacuum main connection within the public right-of-way accomplishes this and meets the ordinance requirement. Exhibit 1 shows that Alternative 1, vacuum system within private property, is the least costly for most of the properties, both for properties with a large number of units as well as for properties with a small number of units. With the exception of Boyd's Campground, there are several properties with a large number of units for which the vacuum alternative is the least costly overall (total cost — Utility and property owner inclusive). And, this option is no more costly to the property owner for his share, than the second least costly practical alternative (typically upgrading their gravity system) even if the utility were to provide and pay for facilities within the public right-of-way (either a force main -Alternative 3-or a series of vacuum valves with controlled releases from the gravity system -Alternative 2). In addition, if these property owners chose to pursue the least costly alternative (a vacuum system) within their property, their O&M costs would be reduced, if they also transferred ownership of the vacuum collection system through an easement. It is interesting to note that Exhibit 1 shows Alternative 1 is not the least costly connection alternative for Roy's Trailer Park and Harbor Shores. For Roy's Trailer Park, the pump station and force main (Alternative 3) is the least costly connection alternative, and is the alternative that has been implemented. Likewise, for Harbor Shores, the gravity system with controlled releases 11 to vacuum valves (or buffer tanks) within the public right-of-way is the least costly alternative, and is the alternative that has been implemented. For properties with a small number of units, and neglecting property lines, Alternative 1 is the least costly and Alternative 4 is the second least costly. However, Alternative 4, where it is practical, could be the least costly to some property owners by a small margin, if the utility were responsible for the cost of the vacuum valves within the public right-of-way (identified as Alternative 4A for purposes of this discussion). Because this is a deviation from what KWRU provided, this was investigated further during the last several meetings with KWRU, particularly during the last full -day meeting and site visit on April 1. Further investigation of Alternative 4A shows the following: Because of different property configurations for properties with a small number of units, implementing Alternative 4A is not always possible for properties with the same number of units. Implementing Alternative 4A is never possible for properties with a large number of units. How then does one then justify, from an equity viewpoint, requiring one property owner, with either a small or large number of units, to pay for the cost of the vacuum valves while another property owner with a small number of units has his vacuum valves paid for by the utility? Hence, because of equity issues, it is recommended that all properties with an estimated sewage flow exceeding 1,000 gallons per day be required to provide all of their sewage collection facilities, even vacuum valves that might be installed within the public right-of-way. Because the Stock Island area is the most difficult area within unincorporated Monroe County to establish a uniform connection policy, this evaluation has provided all of us with a more in-depth knowledge of the issues that were addressed in the uniform connection policy which you are likely to adopt at your next BOCC meeting. Please let me know if you have any questions or need additional information Sincerely, CH2M HILL Kenneth F. Williams, P.E. KFW/jbw Attachments 12 cc: Tim McGarry/Monroe County Dave Koppel/Monroe County Bill Smith/KWRU Doug Carter/KWRU Jeff Weiler/Weiler Engineering Ed Castle/Weiler Engineering 13 ►t i� M M N O N M M M � M N •� M M M M M M M � O O � O 0 0 � �+ .� '7 � � N N � o � N � M N � 'R � �' •� et � M N O a00i a o Q � y aO U mco v chi chi chi E E z Em 0 E m E W m Cd 0 m V0 V] V] H CL a� a� a� z C to a�i y -- Q cd F m E� cd E� cd F� m E� co F� ed H cd H 0 E- cd E•� cd E+ cd E� m F- r w w w w w L S S S A O as z as aoi as a a°i as m ca y O cM v cV vl 1.O ❑ 3 C 3 N v) N Ln M O oo cn .--� to O O O N v .--� N O� O kn O O z �D N w ° ca 10 ccd a 3 G o ff ce F� '� b o� o owN c G a� x N > m v� m cn EPL 3 C/� y o� a� S> o o o O c b ��' .° °�' c o o `� A �° v u O vA c� a� O 0 � a 3 N 4� rA O O 1 v ,b 3 Cd t� o. cz U CISct O U �O y x cd O C's it O U r. O cd > +� E > O O a� O c 3 'o >rnrn 3va�o yO �, cd '0 Na C}t.�., ~ U Cz U t .S= >C7a, o 3 a� O > > > to Cd U 'b 7d rA E E cz U Q Q daG° o Attachment 2 Key West Resort Utility — Revised Utility Agreement Supported and Provided by the PSC 14 0j1:zbi 14"11) 10: ,3J ltsaawlJ, loll � 19Vr CIL (.;xW H. 152m t, Y.A. Roswr C. SRt1NNeN Donn F. Cmum F. M,us=am Dols# mo Jow L jVMVS, PA. STMW T. Mmiw. P.A. DAW L SKM VLLUM E SvraNMU, PA. Dwa D. Tww L P.A. JOWNi_ WHAMON Rou.r M. C. Rou, Or Cowan WAMvs L. 3c am, "iv+, OF Coams LAW Opnczs ROSE, SUNDS' Rom & B►ENTLEY, LLP 2548 BLAnsTom Pwo Dim TAUAERANO, FLORIDA 32301 (850) $77.6355 PAX (3$0) 6564039 www.roostiomays.com lWI LFLolm. QMQR 600 S. Notm I.An BLvD., Sure 160 ALTANOM SPRINGS, PLORM 32*101 (407) 930.6331 FAL (407) 650-MZZ MANM $. FareM.W, P.A. VAMU L. Low, Op COWOK (Umum ar Zkvu O r) March 19, 2003 Mr. Troy Rendelli �V%Q Division of Economic Regulations 1 Florida. Public Scrvico Conu:aiwiom 2540 Shumard Oak. Boulevard Talla a sb=, FL 32399-0550 �pA1Mt�D� Re: K.W. Resort Utilities Corporation; 1�.' LtuC S�R`11 Harbor Shores Utility Agreement Our File Np. 34000.02 Dear Troy: Pursuant to your letter of March 13, 2003, attached please find a markup of the Wity Agreement by and between K.W. Resort Utilities Corp. and Harbor Shores Condominium Unit Owners Association Inc. I believe we have addressed the revisions identified in your letter, although in some cases in a manner different from that suggested. Once you haire had an opportunity to review this draft, please give me a call to discuss this matter further. Siocerely, John R. Jed For The Firm ` JRJ:wjl cc: Mr. Doug Carter William Smith, Esq. Ralph Jaeger, Esq. KW ResorWmde110319031tr CJJi Lar GUUJ 1J. J.J 1OJCI`.1 Aou I , __ f --- u.. 1 - 1 6' ft TSIS UTILITY AGREEMENT ("A,gm=ent"). dated as of theday of March. 2003, by and between No 3yest Resort , Utilities a Florida corporation, havi its office(s) at College Road_ Key Wrst Florida 33040, ("Service Company") and, IZarbor Shurus Condominium Unit Owners Association Inc., (Harbor Shoves), having its office(s) at 6800 Malon2v Ave.. Kv e W�.l''lorida33040. ("Devcluper"). �� R F,CiTarc A. Developer is the owner of certain zeal property more particularly described on EA& "A", attached hereto and made a part hereof (the "Property"). it B. Developer proposes to construct, own, operate and maintain sewage collection system on the PrnprTty to service new construction located an the PropaLty. C. Senrico Comp&xy awns, operates, manages and controls a Central Sewage System and is willing to provide sanitary sewer services pursuant to this Agreement. D. Developer requests that Service C_.ompany'provi.de central, wastowatcr service to the Property as indicated on the plans prepared by Weiler Engineering for The South Stock.Iclaud 3cwcr c%pansion. (Copy of plan sheet included as an exhibit). NOW, THEREFVRE, in consideration of Ten Dollars ($10.00), and the mutual covenants and agreements hereinafter set forth, and intending to be legally hound thereby, it is agreed as follows: 1. Deft itions "Business Day" - shall mean any day of the year in which commercial beaks are not required or authorized to close in New York, New York. "LApLtY Reservation Fee" - as such term is defined in Section S % hereof e t " - shall mean the central collection, transmission, treatment and disposal system and appurtenant facilities owned and operated by the Service Company, "Connecti " -as such term is defined in Section -S 6 hereof. — a.V' _V , you iroi• -a+.ac taw UCUstom..' - shall mean an}r residential or commemial, rnstomer of Service Company. I(Egi iv lent Residential Connectiongs - (ERC); shall be defined &y vuc inciividu.al residential connection or, for commercial and other uses, the estimated flow based on the use and Chapter 64E-6 F.A.C., divided b;' the most recently approved "Capacity Analysis" rate per residential connection (currently 244250 gallons per day per residential ennnectiou). "Plans an.d SRrd6Q.ations" -as such term is defined in Section, hereof. "Point of Dolivcly" - alAall uic4n the point where the Central Sewage bvstem connects to the pipes of the Customer, or as determined by Service Company when the -on -site System is not conveyed to Service Company. "=" = as such term is defined in the Recitals hereof. "PMCM IM-1 bons" or "System" - shall mean any service lines located on individual lots or parcels of the Property or to buildings located on the Property that connect to the Central Sewage System, and may include facilities located outside the Properry; required to be installed by Developer, to connect facilities ou the Property to the Central Sewage System. "Service CoUnpanv's Affiliates" - shall mean any disclosed or undisclosed OfEcer, director, employee, uustvv slauthvlder, partner, principal, parent, subsidiary or other affiliate of Service Company. "Tarifr - shall mean Service Comrat'y'a rxi.sting and future schedules of rates and charges for sewer service. Z. New System Constrvction (a) Prior to the construction and installation of the System, Developer shall, at its sole cost and expense, cause to be prepared and provide to Service Company plans and sproificatiors of the system ("Plans and specifications'), which Plana and Specifications shall be prepared by engineers reasonably acceptable to Service company, and ui i "vurdance with all policies and practices of Service Company and all applicable laws and regulations and standards adopted by the Department of Environmental Protection and Monroe County. (b) Service Company shall approve or disapprove of the Plans and Specifications within �— -1. -1-- -... I- i JV11G i .OV rro�_ rHkat F» thirty days (30) of receipt thereof by written notice to Developer (v) Upun Dcvcluper'S receipt of Service Company's written notice of disapproval of ttie Plans and Specifications. Developer shall promptly re«se the Plaits and Specifications in accordance with any requirements set forth by Service Company in its written notice of dicappmvAJ, arO rr,-submit such revised Plan and specifications to Service Company for approval or disapproval. Service Company shall approve or disapprove of any revised Plans and Specihcatiuub wish uvc (5) business days of receipt thereof by written notice to Developer. (d) Upon Developer's receipt of Service Company's written notice of approval of the Plans and Specifications, Developer may proceed with the construction and installation of the System. Developer shall notify Service Company seventy-two (72) hours prior to beginning construction. All work shall be completed and inspected by licensed and insured contractors and engineers reasonably acceptable to Service Company. In accordance with Chapter 62-604 F.A.C., Developer shall provide, at its sole cost, a Professional Engineer Registered in Florida to provide on - site observation during construction and tprti.n.g and to certify that the System is constructed in compliance with the approved Plans and Specifications. All materials employed by Developer for the System shall be reasonably d;c;optublC to Service Company. No portion or element of the System shall be covered or concealed until inspected by Service Company. Developer shall notify Service Company of Developer's readiness for inspection of the System and Service Company shall inspect the System ,%rifain two (2) business days after each such notice. Any portion of the System not inspected by Service Company within scud time period shall be deemed to have been accepted by Service Company. In the event that Service Company determines through any such inspection that any portion of the System does not fully comply with the Plans and specific conditions or applicable laws and regulations, Service Company shall notify Developer in writing of such, noncompliance not more than two (2) Mtai.nesC days after any such inspection and Developer shall immediately modify the System to insure that the System fully complies with the Plans and Specifications and applicable laws aucl Aceulxtium. (e) In the event Service Company discovers that any portion or element of the System has beer installed, covered or concealed without the prior approval of Service Company, Developer shall, upon written demand by Service Company, immediately dismantle or excavate such portion of the System at its sole coot and expeme. 3• Sy�IC �CCCUl'iY Prior to Service Company's acceptance of all or any portion of the System for service, rAut Uo operation and maintenance or for se vico only, Dcvcloper shall deliver the follovwiug records and documents to Service Company. (a) Copies of all invoices and/or contracts for the construction and installation. (b) An affidavit signed by the Developer stating that there are no parts or portions of the System which are not included in the invoices and contracts noted in subsection (a) abuyc' that said uivvkL and uuntracts accurately and fully reflect the total cost of the System and that the System is free and clear of all liens and encumbrances. (c) Lien waivers from all contractors, subcontractors, material people, and any Other parties that provided labor, services or materials in connection witia the construction of the System. (d) A reproducible Mviar and two (z) sets of blue doe copies, accurately depicting all of the System as constructed and installed, and signed and sealed by the engineer and surveyor of record for the System. (e) Copies of the -results of all tests conducted on the System. (f1 Any other records or documents required by applicable law oA required under the Tariff. (gi A certificate of completion of the System signed and sealed by the engineer of record. (h) A copy of the Department of Environmental Protection permit to construct the System and all inspection reports and approvals issued by the Engineer and the Departrnera of Euvironmental Protection and any other applicable governmental authority or agency. (i) Developer shall furnish a one (1) year written warran.ry and a one (1) year "ka"e"luc build, 9"t'iug Scrvivt: Company against any defects in rnateriais and workmanship of the System for the period of one (1) year after the date of acceptance of the System by the Service Company, U) A bill of sale, in recording form, conveying ail right; title and interest in and to the System, to Service Company free of any and all liem and cncumtraaces for that portion of the System located on the Sendce Company side of the Point of Delivery. PAGE 07 4.al�t; In those cases in which Service Company accepts all or any portion of the System for service, operation and maintenance, Developer shall convey the following property rights and interests for that portion of the System to Service Company: (a) A non-exclusive easement, in the form attached as Exhibit `S", ;For that portion of the Propmity of sufficient b4c; to ciinblt Service Company ingress and egress and to operate, maintain and replace such portions of the System not located within public rights -of -way. The foregoing easement shall be in effect for a period of time not less than the period during which the Service Company shall use the System to provide service to Customers. (b) A non-exclusive easement, in the form attached as Exhibit "$", of sufficient size to enable ingress, egress and access by Service company personnel or vehicles to any lift or pump station located on the Property. The foregoing easement shall be in affect for a period of time not less than the period during which the Service Company cball. nrn the, Systeim to provide service to Customers. (c) Notwithstanding the foregoing ofto icnLs, Developer retains all rights and privileges to utilize the Property in any manner it deems appropriate provided such use is not inconsistent with the purposes intended for such easements. S. Existing S vstems Developer may connect an existing gravity or low pressure system ("Existing System") to Service Company's vacuum system provided the Existing System meets the following criteria: (a) The .P.xi:StirZ SystMU mast meet all county plumbing codes and have in full foree and effect a Department of Envirozunental Protection permit to operate said system, if required by Dcpart ncnt of EnviiomxacuW ptvtcutiuu. De"loper agrees to maintain said permit if any, at it's cost and expense. fb) The Existing Systems must be free from any intrusion of water from grolmd or q„r-f�c...e resources. (c) Developer mast make a non-refundable deposit with Service Company of $ to pay for the inspection and testing of the Existing System by 5mrvice Company's agents and engineers. (d) Provision for Existing Systems requiring hydraulic lift to Right -of -Way — The Developer, at its discretion, may propose to utilize an existing gravity system that delivers sewage flows to the County Right -of -Way via a hydraulic system with the following conditions: Total flow from any one source that is delivered via hydraulic assistance shall not exceed 3 GPM. Where an Existing System proposes to transmit flows in excess of 3 GPM, the Existing System must be designed with multiple output points not to exceed 3 GPM each to be separated by a horizontal distance of 100 -feet ut _WGnlct• m measured along the Service Company's vacuum amain. The Developer's hydraulic system must be configured with an electronic shut-off to ensure that flows do not continue during an emergency failure of the Service Company's vacuum system. The Developer agrms to maintain a gravity system that does not incur excessive amounts of infiltration and inflow (71I). An excessive amount ofIlI is defined as flows exceeding 15VXr ofthr, dV=-,tSz tidily flows fbr a 12- hour period. The utility reserves the right to discontinue ser% ice to the Developer in the event that the utility determines that excessive amounts of I/I are being received from the Developer. (e) Tn the evrat that an Existimg System, after connection to the Central Sawagc System, needs repair (other than non -emergency repairs) then Developer agrees to make said repairs within 30 daya of nudce by Service Company. In the event of #allure by Developer to make repairs to its system within said time period then Service Company shall be permitted WPOR . to discos into service to the Existing gym,. In the event of the need for emergency repairs to an Existing System, Service Company shall be authorized to make said repairs (but shall not be obligated) and upon presentation of a bill to Developer for said repairs said bill shall be ixwnediately due and payable. (f) Developer a8Lom Lu pruvidt; Service Company with: (1) a copy of its Department of Environmental Protection Permit, if required; (2) a survey accurately depicting the location of the Existing System as conc;txueted and installed and signed and eca.lcd by a survuyur; and, Service Company shall have the right, but not the obligation, to accept ownership of the Btsting System. Should Service Company accept ownership, Developer shall comply with the Property Rights requirements set forth in § 4 herein.. Upon acceptance by service Company Developer agrees that Service Company, or its agents, shall have access at all reasonable hours to the Existing System on the Property for the purpose of inspection, repair, meter reading, disconnecting service, reconnecting service, and in doing so will not be liable for trespass. This shall include the right of access to areas outside individual units on the Property. (a) All Customers will pay the applicable fees, rates and charges as set forth in the Tariff. Noting contained in this Armt shall serve to prohibit Service Compatay's right to bill or collect its rates and charges from Customers, nor to require compliance with any provision of its Tariff. (b) Developer shall pay to Service Company a reservation fee ("Capacity Reservation Fee"), in the amount of Two Thousand Seven Hundred ($7,700.00) dollars per E.R.C.connection to be reserved by Developer to serve the residential or commercial structures to be eonst=ted in or upon the Property (individually, d "Connection", collectively, the "Connections"). 4,40 Prior to execution of this agreement, Devcloper shall supply Service Company access and information necessary to determine number of ERC's proposed. Infoi nnatioL way include plans, occupational licenses, etc. tbr: 70 Single Family Homes 70 ERC's 2000 sf of Office Space 1.46 RRC"s Total 71.46 FRC's (c) The Capacity Reservation Fee for each connection shall be payable by Developer to Service Company as follows: (i) 1/3 ($64,314) upon execution of this agreement (ii) 213 ($128,628) upon connection of the lust house or office building to the ayatcm (d) In the event of additional development on the property or a change in use Developer shall provide Service Company with a site plan and crhedule of proposed development of the Property setting forth the amount of Connections for which Capacity shall, be additionally rcaerve3 under this Avamucnt. Service Company hencby agrees to reserve such capacity for the benefit for Developer subject to the provisions of this Section 3 ¢, provided, however, that such reservations shall not be effective until Service Company has received the initial installment of the Capacity Reservation Fee in accordance with Section b hereof, and provided, further, that Smvice. C.ampany shall have the right to cancel such reservations in the cvcnt of Developer's failure to comply with the terms of this Agreement. In the event there is additional watra Lwagc uver and above the amount reserved in paragraph 6b above, (based on an annual review) the developer shall remit additional capacity reservation fees to Service Company 30 days after notice by Service Company of additional fees due. (e) Developer shall reirnburse Scrvicc Company for cngiucraiug scrvices and applicable administrative fees nec--ssary to review and approve construction plans and documents and for periodic inspection during construction and testing. {fl In the event of default by Developer and the payment of fees hereunder, Service Company may cancel this agreement by giving 30 (thirty) days writtcn uoticc of default Pad retain all payments hereunder as liquidated damages. (g} Developer agrees that in the event of a change of use or any change that might affect the flows (Le. Addition of a restaurant) Service Company will be notified and the applicable Capacity Reservation fees will be paid prim to discharge to the Central Sewage Systemr. 7. Absolute Conveyance Developer understands, agrees and acknowledges that Developer's conveyance of any and all easements, real property or personal property (including, without limitation, the System), or payment of any funds hereunder (including, without limitation, the Capacity Ztcscrvat ou Fee and Connection Charges); shall, upon acceptance by Service Company, be absolute, complete and uuquali.G4 dud that ueither Developer nor any parry claiming by or through Developer shall have any right to such easements, real or personal property, or funds, or any benefit which Service Company may derive from such conveyance or payments in any form or manner. S. Deiivery of Service Opera 'on and Maintcna ce (a) Upon Developer's full performance of its obligations under this Agreement, Service Company shall, provide service to the point of Delivery in accordance with the terms of this Agreement, all applicable laws and regulations .aad shall operate and maintain the Central Sewage System to the Point of Delivery in accordanm with the terms and provisions of this Agreement. Said service shall be provided on or about September 30th, 2003. (b) Developer shall, at its sole cost and expense, own, operate and maintain any part of tb., System that has not been conveyed to Service Company pursuant to the terms and conditions of this Agreement. (c) Developer acknowledges that certain water quality standards must be met prior to juilueat entering the wastewater treatment plant (primarily chloride levels and excessive flows) and agrees to allow Service Company to monitor flows and water quality at Service Company's discretion at a point on the Developer's side of the Point of Delivery. If it is determined that substsaadard influent or excessive flows are entering the Central Sewage System via Developer's System, Developer agrees to isolate the source and to repair or replace the portiun or purLium of Lhc fwAty Systow in a manner acceptable to Service Company in accordance with this agreement. (d) Tn the event any portion of the Property is developed as a condominium, the condominiums association shall be required to execute a maintenance agreement with rwpact to any portion of the Syatcm not conveyed to Service Company. Such maintenance agreement shall provide that if the condominium association fails to adequately maintain and repair the System, Service Comspauy shall have the right to maintain and repair such System at the sole cost and expense of the condominium association. (e) In the event Developer utilizes valve pits and a vacuum provided by Service Company, force maim or low pressure 5ysium aria ax sawc is lucatod oil the PxopeLty and not in the public Right -of -Way, then Developer shall be obligated to maintain said system. Developer agrees to employ maintenance personnel approved by Service Company to operate said system and to pay for said service. The estimated cost for said service for valve pits and a vacuum system is $2 per EEC per mouth which may vary dcpcnding upon contractor'„ coat to provide said service. 9. Regair of System In the event of any damage to or destruction of any portion of the Central Sewage System due to any acts or omissions by Developer, any Customer or their respective agents, representatives, employees, invitees or licensees, Service Company shall repair or replace such damaged or destroyed 14uilhic5 at the sulc Lost and expense of Dew ejepoe-responsible DAY rHaG 14 Developer shall operate, maintain and repair all Other portions of the System not conveyed to Service Company at its sole cost and expense. 10. JIM This Agreement shall become effective as of the date first written above, and shall continue for so long as Service Company provides sewer service to the public. 11. Default In the event of a default by either party of its duties and obligations hereunder, the non - defaulting patty shall provide written notice to the defaulting party specifying the nature of the default end tbe- defanl.tinZ party shall have five (5) days to titre any default of a rmonetacy nature and thirty (30) days for any other default. If the default has not been cured within the applicuable period (time being of the essence), the non-deiaulti4 patty ULall be cutiLlod Lu exercise all remedies available at law or in equity, including but not limited to, the right to damages, injunctive relief and specific performance. Service Company may, at its sole option discontinue and suspend the delivery of service to the System in accordance with all requirements of applicable law anal the Tariff if Developer fails to timely pay all fees, rates and charges pursuant to the terms of this: Agreement. 12. Excuse UQm Performance (a) Force Maieure. If Service Company is prevented from or delayed in performing any act required to br prrfnmumd by Srrv�irr. Company hr , mder, and such prevention or delay is cased by strikes, labor disputes, inability to obtain labor, materials or Nuiprueut, storms, em-thquakes, electric power failures, laud subaid , au(s Uf Cixl, acts ofpublic enemy, wars, blockades, riots, acts of armed forces, delays by carriers, inability to obtain nights -of -way, acts of public authority, regulatory agencies, or courts, or any other cause, whether the same kind is enumerated herein, not within the control of Service Company (Torte Majeure", the performance of such act shall be excused for a period equal to the period of prevention or delay. (b ) Governmental Acts If for axay reason dt:ring the term of this Agree ent, other than the fault of Developer, any federal, state or local authorities or agencies fail to issue necessary permits, grant necessary approvals or require any change in the operation of the Cemtral SpwaEre SyctPm nr the System ("Govemmenta.l Qrtc") tbrm to tbP extent that such Governmental Acts shall affect the ability of any party to perform any of the tenus of this Agreement in whole or in part, the affected parry shall be excused from the performance thereof and a new agreement shall' be negotiated, if possible, by the parties hereto in conformity which such permits, approvals or V.Jr VI 6VVJ mod. Jr , --- -- requirements. Notwithstanding the foregoing, neither Developer nor Service Company shall be obligated to accept any new agreement if it substantially adds to its burdens and obligations hereunder. (c) Emergency Situations Service Company shall not be held liable for damages to Developer and Developer hereby agrees not to hold Service Company liable for damages for failure to deliver service to the Property upon the occurrence of any of the following events: 1. A lack of service due to loss of flow or process or distribution failure; 2. Equipment or material failure in the Central Sewage Systeni or the System, including storage, pumping and piping provided the Service Company has utilized its best efforts to maintain the Central Sewage System in good operating cozdition; and 3. Force Maj cure, unforeseeable failure or breakdown of pumping, transmission err other facilities, any and all governmental requirements, acts or action of any government, public or governmental authority, commission or board, agency, agent, official or officer, the enactment of auy statute, ordinance, resolution, regulation, rule or ruling, order, decree or judgment, restraining order or mj=ction of any court, including, without limitation, Govemmental Acts. (d) Notwithstanding any excuse of performance due to the occurrence of any of tlu foregoing events, Developer shall not be excused from payment of any fees, charges and rates due to Service Company wiLlm the iron ua ur this Agre=ient (including without limitation, the Capacity Reservation Fee and Connection Charges). 13_ Suttee ore and Assigns Thus Agrocnient and the eaaamcuts granted hereby, shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 14. Ilidem ' cation Developer shall indemnify, defend and hold Service. Cnmpsny anti Service Company's Affiliates harmless from and against any and all claims, demands, causes of action, losses, damages, liabilities, vests and-tVasguablc expenses, imludiuog, without limitation, attorneys' fees and disbursements, suffered or incurred by Service Company or any of Service Company's Affiliates and arising out of or in connection with use, occupancy, or operation U.7/ /0/ Z-U✓JJ 1.7. JJ lOJCl •t1J i J.Qu 1 i -- •-- — of the System, the Property, or the activities_ esrrars, or nx7niasinns nf Develnper, its agents, employees, servants, licensees, invitees, or contractors on or about the Proparty,mrsuant to terms and condildous of 116 Ate. Developer's duty to indemnify shall also includc, but not be limited to, indemnification from and against any fine, penalty, liability, or cost to Service Company arising out of Developer's violation or breach of any law, ordinance, ,governmental regulation. *his Agreement requirement or permit applicable to the System or Developer's activities on or about the Property. The provisions of this Section 13 shall survivc the termination of this Agreement. Developers civil engineering firm shall maintain "errors and omission' insurance in an amount of $1,000,000. 15. Iance Far ug,to one }year following conyMance 2f the 5vsIlM to SP ".0'. CMITO s v T)evel.f prr Ahali maintain or cause to be maintained a policy of cuuuucuuiid rrmetal liability innuance with a broad fora contractual liability endorsement covering Developer's indemmification obligations contained in this Agreement, and with a combined single limit of not less than $1,000,000 general liability, ;»curing Service Company and Service Company's Affiliates, as additional insured in such forms and with an insurance company reasonably acceptable to Service Company, and shall deliver a copy of such, insurance polioy together with a certificate of insurmice to Service Company prior to or upon execution of this Agreement. All such insurance shall be written on an "occurrence form". •�f_ ••iotat df. • .t,- •r Mlyf. 1C• �Jlf_• l•l t op tt • t .� 1 1 i • . • I Z • • 16. NOVces All notices, demands, requests or other communications by either party under this Agreement shall be in writing and sent by (a) first class U.S. certified or registered mail, return receipt requested, with postage prepaid, or (b) overnight drJivery Rewire nr nnim r, nr (c) telefacsimile or similar facsimile transmission with receipt confucmed as follows: 12 GJl LO/ LGGJ 1J. JJ lOJV��., r iOv `+� ^•^- -- If to Service Company. 17. With a copy to: If to Developer: Mr. Doug Career, General Manager 6450 Junior College Road Key West, Florida 33040 Fax ('105) 294-17.17 Mr. Jeff Weiler, P.E. Weiler b ginwring 20020 Veterans Blvd. Port Charlotte, Florida 33954 Fax (941) 764-8915 Kurt Reiter Harbor Shores SR00 Maloney Ave Key West, Florida 33040 This Agreement is subject to all of the terms and provision of the Tariff. In the event of any conflict between the Tariff and the terms of this Agreement, the Tariff shall govern and control. 18. NWcellaneQus Provisions (a) This Agreement shall not be altered, amended, changed, waived, terminated or otherwise modified in any respect or particular, and no consent or approval required pursuant to this Agreement shall be effective, unless the same shall be in writing and signed by or on behalf of the party to be charged. (b) All pnor statements, understandings, representations and agreements between the parties, oral or written, are superseded by and merged m this Agreement, which alone fully and completely expresses the agreement between them in connection with this transaction and which is entered into after full investigation, neither party relying upon any statement, understanding, representation or agreement made by the other not embodied m this Agreement. This Agreement shall be given a fair and reasonable construction in accordance with the intentions of the parties hereto, and without regard to or aid of canons requiring construction against Service Company 1:3 03/28/2003 15:3J idO641-Delou rrz,�, or the party drafting this Agreement. (c) No failure or delay of either parry in the exercise of any right or remedy given to sucl, party hereunder or the waiver by any party of any condition hereunder for its benefit (unless the time specified herein for exercise of such right or remedy has expired) shall constitute a waiver of any other or further right or remedy nor shall any mnp),e or partial exercise of any right or remedy preclude other or .ttrther exercise thereof or any othor right or romody. No weivor by either party of any breach hereunder or failure or refusal by the other party to comply with its obligations shall be deemed a waiver of any other or subsequent breach, failure or refusal to so comply, (d) This Agreement may be executed in one or more counterparts, each of which so executed and delivered shall be deemed an original, but all of which taken together shall constitute but one and the same instrument. It shall not be necessary for the sanic W uritmptu t ur this Agrcmuc It to be executed by 41 of the parties hereto. (c) Each of the exhibits and schedules referred to herein and attached hereto is incorporated herein by this reference. (f) The caption headings in this Agreement aro for converxicncc only and are not intended to be a part of this Agreement and shall not be construed to modify, explain or alter any of the terms, covenants or conditions herein contained. (g) This Agreement shall be interpreted and enforced in accordance with the laws of the state in which the Property is located without reference to principles of conflicts of laws In the event that the Florida Public Service commission loses or relinquishes its authurity lu rcgulata Scrviut Gumpariy, thou all mforemces to such regulatory authority will relate to the agency of government or pclihoal subdivision imposing said regulations. If no such regulation exists, then this Agreement shall be governed by applicable principles of law. (h) Each of the parties to this Agreement agrees that at any time aftcr the cxcoution hereof, it will, on request of the other party, execute and deliver such other documents and further assurances as may reasonably be required by Such other party in order to carry out the intent of this Agreement. (i) If any provision of this Agreement shall be unenforceable or invalid, the same shall not affect the remaining provisions of this Agreement and to this end the provisions of tkib Agreement are hiteuded to be and shall be ucvciod. Nulwithbtanding the foregoing sentence, if (I) any provision of this Agreement is finally dotermined by a court of competent jurisdiction to be unenforceable or invalid in whole or in part, 1.4 Oj/'ebf Lbb.i It): 'IOOU41.Df lou I I "v f r, lL L (ii) the opportunity for all appeals of such deterniiandou Lave cxpiracl, and (iti) such unenforceability or invalidity alters the substance of this Agreement (taken as a whole) so as to deny either party, in a material way, the realization of the intended benefit of its bargain, such party may terminate this Agreement within thirty (30) days after the final determination by notice to the other. If such party so elects to terminate this Agreement, then this Agreement shall be terminated and neither party shall have any f►uther rights, obligations or liabilities hereunder, except for any rights, obligations or liabilities which by this specific terms of this Agreement survive the termination of this Agreement. rlr ■. 96 r r r • �, r �, 1. rir r . YY Y ■ . . ... ,l H. r r. \ r Y ■_ ar_ ■ ,r w_ 111 MM w w ■ ►_tAw r ■•• .•r r r •� ra. • r WIN IaMAN------------- Y • l I N• ■. ■a �•. ,,� Y r • Y , i.l In the event of any litigation arising out of or connected in any manner with this Agreement, the non -prevailing party shall pay the costs of the prevailing party, including its reasonable counsel and paralegal fees incurred in connection therewith through and including all other legal expenses and the costs of any appeals and appellate costs relating thereto. Wherever in this Agreement it is stated that one party shall be responsible for the attorneys' fees and expenses of another party, the same shall automatically be deemed to include the fees and expenses in connection with all appeals and appellate proceedings relating or incidental thereto. This subsection (4) W shall survive the termination of this Agreement. Awl kaj This Agreement shall not be deemed to confer in favor of any third parties any rights whatsoever as third -party bcncficinrica, the parties hereto iimtmduig by the provisions hereof to confer no such benefits or status. Developer agrees that Service Company may, at its sole discretion, require certain allocations to the proposed collection and transmission systems for future 15 03/28/2003 15:33 idOU41JilOt7 rrz,�, y� eonnoctions. Acvcloper fiuthcr agrees thitt SCrvicc Company may, at its sole discretion, extend the sewer line ;for any reason. It is understood that there will be no reimbursement or additional credit. IN WITNESS WHEREOF, Service Company and Developer have executed this A8reernent zs of the day and year first above written. SERVICE COMPANY: Key West Resort Utilities Corporation By: Print Nance: Title: Address: Key West Resort Utilities Corporation 6450 Junior College Road Key West, Florida 33040 STATE OF FLORIDA } ) ss: COUNTY OF MONROE ) DEVELOPER; Harbor Shores Condominium Unit (-wners Association, Jmc. By: Print Nauic, Title: Address: Harbor Shores Condominium Unit Owners Association, Inc. 6800 Maloney Avenue Key West, Florida 33040 The foregoing instrument was acknowledged before me this day of 200_, by as , a Florida corporation, on behalf of said corporation. Heishe is personally known to me or who hag produced as identification. My Commission Expires: STATE OF FLORIDA ) ss: COUNTY OF MONROE ) The foregoing msmzment was acknowiedged before me this day of , 200_, by , as a Florida corporation, on behalf of said corporation. He/she is personally known to me or who has pmduced as identification. My Corrux fission Expaes: 1 -i Attachment 3 List of Meetings 15 Actions Since January BOCC Meeting Meetings 1. 23 January 2003 — Internal staff meeting ♦ George Garrett ♦ Dave Koppel ♦ Ken Williams 2. January 2003 — Meeting with Boyd's Campground ♦ George Garrett ♦ Ken Williams ♦ Danny Hamilton 3. 10 February 2003 — Meeting with KWRU ♦ George Garrett ♦ Dave Koppel ♦ Ken Williams ♦ Doug Carter ♦ John Johnson ♦ Chris Johnson ♦ Ed Castle 4. 17 February 2003 - Teleconference with Public Service Commission staff ♦ Ralph Jeager — PSC staff ♦ Other PSC staff ♦ Tim Keonig — Coral Hammock ♦ Danny Hamilton — Boyd's Campground ♦ Fred Scomp — Hurricane Hole Marina ♦ Representative ??? — Carlisle Group ♦ Representative ??? — Property/Project ??? ♦ Commissioner Nelson ♦ George Garrett ♦ Ken Williams 5. 18 February 2003 - FKAA Meeting ♦ George Garrett ♦ Ken Williams ♦ Jim Reynolds ♦ Jack Teague ♦ Ray Shimokubo 16 6. 26 February 2003 — KWRU Meeting ♦ George Garrett ♦ Dave Koppel ♦ Ken Williams ♦ Jack London ♦ Doug Carter ♦ Jeff Weiler ♦ Ed Castle 7. 7 March 2003 — KWRU Meeting ♦ George Garrett ♦ Dave Koppel ♦ Ken Williams ♦ Jack London ♦ Doug Carter ♦ Jeff Weiler ♦ Ed Castle 8. 17 March 2003 — KWRU Meeting ♦ George Garrett ♦ Ken Williams ♦ Jack London ♦ Doug Carter ♦ Jeff Weiler ♦ Ed Castle 9. 31 March 2003 — KWRU Meeting ♦ George Garrett ♦ Ken Williams ♦ Jack London ♦ Doug Carter ♦ Jeff Weiler ♦ Ed Castle Telephone Communications Ralph Jaeger — Public Service Commission Doug Carter — Key West Resort Utility Jeff Weiler — Weiler Engineering John Johnson — Weiler Engineering 17 Danny Hamilton — Boyd's Campground Tim Koenig — Coral Hammock Diana Moore — Harbor Shores Condominium Kim Wigington — Harbor Shores Condominium Ray Scomp — Hurricane Hole Marina Isabelle Sherman — Roy's Mobile Home Park Carol Lee McReynolds — Water's Edge