2004 - 08-23-04 Regular Meeting - Laserfiche WebLink

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0 0 u X ; u~ PAGE 50 3. Until June 30, 2005, or until purchase and transfer of the water system to the City, whichever comes first, the City will continue billing the County and District customers in accordance with the Operation and Maintenance Contracts dated August 20, 1996. 4. County, District, and City agree to resolve their differences regarding water used for flushing between July 1, 2003 and June 30, 2004, in the following manner: County agrees to immediately pay the City of Sanford 50% of the total amount of water used for flushing or $99,456. An additional 25% of the total cost of water used for flushing during this period, or an amount equal to $49,728, will be placed in escrow and dispersed in accordance with provisions contained of subparagraph 5 below. 5. The Timmons Group has been employed by the County to determine the true benefits of flushing activity to each water system. With respect to the $49,728 placed in escrow for flushing between July 1, 2003 and June 30, 2004, parties agreed to negotiate the dispersion of those funds based on recommendations of the Timmons Group analysis. In the event parties fail to agree to terms for the dispersion of those funds placed in escrow, the matter will be submitted to mediation. 6. Beginning July 1, 2004, and each month thereafter, the County will pay for 62.5% of the total cost of water used for flushing for the duration of this agreement or until such time that the City of Sanford purchases the system. In the event the Timmons Group analysis provides inforniation which might warrant reconsideration of the apportionment of flushing costs, parties may negotiate to change the formula for the period beginning July 1, 2004. In the event the parties fail to agree on the reapportionment of flushing costs, County and District agree to continue to pay for 62.5% of the flushing costs until the matter is settled through mediation. 7. The City, County, and District agree to postpone resolution of any disputes over customers until June 30, 2005, or until negated by the purchase and transfer of the water system. 8. The City agrees to postpone collection of the bill for past maintenance in the amount of 5170,800 until June 30, 2005, unless negated by purchase and transfer of the water system. In the event the City does not purchase the system, interest shall accrue at the prime interest rate beginning August 20, 2004, through June 30, 2005, and the parties agree to submit the matter to mediation. 9. The County and District agree not to encumber the assets of the District's system by additional obligations until after June 30, 2005, or until the purchase and transfer of the water system. 2