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2003-25 . IN THE CIRCUIT COURT FOR THE FIFTH JUDICIAL CIRCUIT, IN AND FOR LAKE COUNTY, FLORIDA LAKE UTILITY SERVICES, INc., vs. Plaintiff, CASE NO. 2003 CA 871 CITY OF CLERMONT, FLORIDA, Defendant. / SETTLEMENT AGREEMENT This Settlement Agreement (the Agreement) is entered into thi~ day of August, 2003 between Lake Utility Services, Inc., a Florida corporation (LUSl), and the City of Clermont, a municipal corporation ofthe State of Florida, situated in Lake County, Florida (City). . A. B. C. D, E. F. . M¡,if~ RECITALS LUSI is a utility certificated to provide water and wastewater service to customers in Lake County Florida in the area identified on Exhibit "A" (LUSl's Existing Service Area); The City is a municipal corporation of the State of Florida which is authorized to provide water and wastewater service to customers in the area identified on Exhibit "A" (City's Existing Service Area); In Docket No. 020907-WS (the Administrative Proceeding), LUSI filed an application (Application) with the Florida Public Service Commission (Commission) to extend its service area to the area identified on Exhibit "A" (LUSI's Proposed Service Area); The City adopted Ordinance No. 323-C (Ordinance) to extend its service area to the area identified on Exhibit "A" (City's Proposed Service Area); LUSI's Proposed Service Area and City's Proposed Service Area are adjacent and overlap in part; The City has objected to LUSI's application, asserting that it has the exclusive right, under Section 180, Florida Statutes, to provide water and wastewater service to City's Proposed Service Area and on other grounds; a(J)~ - dS- . . . G. LUSI disputes the City's claim that it has the exclusive right under Section 180, Florida Statutes, to provide both water and wastewater service to City's Proposed Service Area and has filed a Complaint for Declaratory Judgment and for Supplemental Relief, Case No. 2003 CA 871 (the Lawsuit), filed in the Circuit Court of Lake County, Fifth Judicial Circuit ( Complaint); H. LUSI and the City desire to [mally and fully resolve the service area issues raised in the Administrative Proceeding and the Lawsuit with this Agreement. I. LUSI and the City wish to clearly define their respective extended service areas to facilitate planning, avoid a duplication of facilities and services, maximize the use of their respective facilities, resolve any conflict concerning their respective rights and responsibilities and [mally settle compromise the disputes regarding their respective extended service areas. NOW THEREFORE, in consideration of the mutual promises and covenants set out in this Agreement, the sufficiency of which is hereby acknowledged, LUSI and the City agree as follows: 1. The foregoing Recitals are true and correct and incorporated into this Agreement for all purposes. 2. LUSI agrees that the City shall have the exclusive right to provide water and wastewater service to the area identified on Exhibit "B" as the City's service area (the City's Agreed Service Area), and LUSI shall not provide water or wastewater service within the City's Agreed Service Area without the prior written consent of the City, which consent may be withheld at the sole discretion of the City, except to the limited extent described in paragraphs 2A, 2B and 2C below, A. Notwithstanding the foregoing, for that geographic area generally located south of SR 50, north of Lake Louisa, west of US Highway 27 and east of the western boundary of the City's utility service area, as identified by ordinance and more specifically described on Exhibit "C" attached hereto (Shared Service Area), the City shall have the exclusive right to provide wastewater service in said Shared Service Area and LUSI shall provide water service in the Shared Service Area. The City shall not provide water service in the Shared Service Area without the prior written consent of the LUSI, which consent may be withheld at the sole discretion of LUSI. LUSI shall not provide wastewater service in the Shared Service Area without the prior written consent of the City, which consent may be withheld at the sole discretion of the City, B. Notwithstanding the foregoing, LUSI shall have the right to provide water and wastewater service to the property identified on Exhibit "B", if the property is developed in a common plan or as additional phasing to the adjacent property to the south which is in the LUSI Agreed Service Area. C. Ames-Hartwood Area. Only as to that specific area located partly in Sections 21, 22 and 23, Township 23S, Range 26E, Lake County, Florida, currently owned by the Ames and 2 . . . Hartwood Groups (hereinafter called the Ames-Hartwood Area), which Ames-Hartwood Area is within the City Service Area, and as depicted on Exhibit "C", attached hereto and by this reference made apart hereof, City and LUSI agree that the Ames-Hartwood Area within the City Service Area will be served with water and wastewater based upon the following criteria: (i) by LUSI, if the Ames-Hartwood Area is developed in a common plan or as additional phasing to the adjacent property to the south in LUSI's Agreed Service Area which is owned by the Ames-Hartwood Groups, their successors and/or assigns; and (ii) by the City, if the Ames-Hartwood Area is not developed in a common plan or as additional phasing to the adjacent property to the south in LUSI's Agreed Service Area which is owned by the Ames-Hartwood Groups, their successors and/or assigns. 3. The City agrees that LUSI shall have the exclusive right to provide water and wastewater service to the area identified on Exhibit "B" as LUSI's service area (LUSI's Agreed Service Area) and the City shall not provide water or wastewater service within LUSI's Agreed Service Area without the prior written consent of LUSI, which consent may be withheld at the sole discretion of LDSI, or in the event that LUSI is unable to obtain authorization to provide such service by the Commission or such authorization is subsequently removed or rescinded by the Commission. The City shall not initiate or participate in any proceeding before the Commission to remove or rescind LUSI's right to serve its Agreed Service Area: 4. Within ten (10) days after execution of this Agreement, both parties shall submit this Agreement to the Court in the Lawsuit and request the Court to approve this Agreement. The parties agree that the Court will have continuing jurisdiction to enforce the terms and provisions of this Agreement. LUSI shall also amend the Application in the Administrative proceeding to delete the City's Agreed Service Area from the Application. 5. Within ten (10) days after execution of this Agreement, the City shall begin the process to amend the Ordinance to delete LUSI's Agreed Service Area from the boundaries established by the Ordinance. Further, upon amendment of the application by LUSI, the City shall withdraw its objection to the Application in the Administrative proceeding. 6. This Agreement is the result of a compromise of vigorously disputed claims and does not constitute and shall not be construed to be an admission of liability or responsibility of any party hereto. LUSI and the City specifically state that they have entered into this Agreement solely to avoid the burden and expense of continuing litigation and for the covenants, releases, and agreements contained herein. 3 '. . . . 7, This Agreement, including all Exhibits attached hereto, contains the entire agreement between the parties relating to the subject matter hereof, All prior or contemporaneous agreements, written or oral, between the parties regarding the subject matter hereof are superseded by this Agreement. This Agreement may not be modified except by a written document signed by an authorized representative of each of LUSI and the City. No term of this Agreement is to be construed or interpreted in any manner based upon which party drafted its language. 8. Nothing in this Agreement, express or implied, is intended to confer on any person other than the parties any rights, remedies, obligations, or liabilities under or by reason of this Agreement. 9. LUSI and the City agree to execute all such documents and take all such actions after the date hereof as the other party shall reasonably request in connection with carrying out and effectuating the intent and purposes contemplattrl by this Agreement, including, without limitation, the execution and delivery of any and all confirmatory and other documents in addition to those to be delivered concurrently with the execution hereof and all actions which may reasonably be necessary or desirable to complete the transaction and agreements contemplated hereby. 10. This Agreement shall be binding upon and shall inure to the benefit ofLUSI and the City and their respective assigns and successors by merger, consolidation, conveyance or otherwise. 11. . Until further written notice by either party to the other, all notices provided for herein shall be in writing and transmitted by messenger, by mail or facsimile, and if to the City, shall be mailed or delivered to the City at: The City of Clermont 1 Westgate Plaza Clermont, Florida 34771 Attn: Wayne Saunders, City Manager and ifto LUSI, at: Lake Utility Services, Inc. 200 Weathersfield Avenue Altamonte Springs, Florida 32714 Attention: Patrick Flynn, Regional Director with a copy to: Rose, Sundstrom & Bentley, LLP 600 S. North Lake Blvd., Ste. 160 Altamonte Springs, Florida 32701 Attention: Martin S. Friedman, Esquire 4 . . . 12. This Agreement shall be governed by the laws of the State of Florida and it shall be and become effective immediately upon execution by both parties hereto, subject to any approvals which must be obtained from governmental authority, if applicable. 13. In the event LUSI or the City is required to enforce this Agreement by Court proceedings or otherwise, by instituting suit or otherwise, then the prevailingparty shall be entitled to recover from the other party all costs incurred, including reasonable attorney's fees, including such fees and costs of any appeal. 14. Whenever approvals of any nature are required by either party to this Agreement, it is agreed that same shall not be unreasonably withheld or delayed. 15. Failure to insist upon strict compliance of any of the terms, covenants, or conditions herein shall not be deemed a waiver of such terms, covenants, or conditions, nor shall any waiver or relinquishment of any right or power hereunder at anyone time or times be deemed a waiver or relinquishment of such right or power at any other time or times, IN WITNESS WHEREOF, LUSI and the City have executed or have caused this Agreement, with the named Exhibits attached, to be duly executed in several counterparts, each of which counterpart shall be considered an original executed copy of this Agreement. WITNESSES: LAKE UTILITY SERVICES, INe. S-4...;~ / ~---. Print Name- SííÆú,¿q¡/ ¿Jh::>/Iõ'?,7 " -iÞÅ¿" ~ ~ Print Name L,~ c.;'2..ðSS~T1"'" ~~ THE CITY OF CLERMONT ~:\7~/V &eli &æ~ , Print Name i3ec..k..L t3/ac..t~oÏ'\ .. D- By: NÆ/hivi//e , r Settlement Agreement-8/12/03 5 EXIDBIT "A" . . . . . . .... .....,.. ... : \ ~ I ~ ~ ~ ~ ~ I -.. +.. -.. -.. - ,. +.. - ..-..-. .+.. - .,-.. -., -'-"- ..-.. -,,+,,- ,. - ,. -. .+,.- '. -. .-, .+"- ,. -,,_.. +..- .,_.,_.. +., -.. -.. -., -..- I . , WIW , , , . . WIW t ! ¡ ~ tEl ¡ !. ! ! ! ~ ~ I 27 ! 26 i 25 i,li 30 ! 29 ! 28 ~ 27 ¡ 26 \ 25 ili , I I I I I I I .' ..", -..+..-..-..-.. " , -,,-..-..+..-,.-..-.,+,.-..-,.-.,t..-,.-..-,,+,.-..-..-..too- I : : : . * I . I I i I 34 2 ¡ 33 ¡ 34 ¡ 35 ¡ 361 , I I I i J I . ' ' , _~TOWNSH~~- --j----~-----+--~~ - ,TOWNSHIP 23 S ~ ~ . TOWNSHIP 23 S', I I ; 3 4 ¡ ; ~ -..t..-..-..-.. , I . J _"+00_"_"-" ; I ; -..t.,-..-..-.. ; ,.. - -~/-- . . ---+ !~ - 2!!!- _I - , TOWNSHIP 24 S ~ , . I I 10 15 -..+..-..-.. j I . I I I . I- . _00+00_" ..-..+..-.. 27 26 25 ~ 1- I I I -.,+,.-..-.,-.. I I I I _00",_"_00-" I : : I I . . WI ~ 18 i 17 i 16 ~IN ¡ ¡ ~I~ : : -..t,,-..-..-..t..-,,-,.-.'t..-..-,¡ I I 6 7 :-""'---::.~... GRAPHIC SCALE 21 LEGEND: - EXISi1NQ LAKE VT1.JTY SERVICES SEfMCE AÆA - - - - EXISi1NQ CITY OF CL.ERMONT SERVICE AÆA BOUNDARY -..+..-..-..-.. ! \l ¡ I i .28 i 27 i. 6 \: 25 Wlw : : '. . ~ ~ ! Iii ¡Ii -..t' 00_00_"-"+: "_"_"_00+: "_00_00_00+: m "_00_00_"+"- : .' I Iii ¡ I ~ PROPOSED LAKE. \1TIUTY SERVICES SERVICE AREA UTILITY SERVICE AREAS ~ Otllgnld by: ~ Chlck.d by: ~: Nlml DIll SNR 2103..1 & RAS 2/03 OEM 2103 SNR 2103 Scale: NONE Olte: JUNE 12.2003 Job No. U07D8.08 IITII.lTIES INC. OF FLORIDA Rovl,¡on Fill: .... -..... ..~... . . !,ppro..~~ I ~ 2003 ",w" M"- . EXIDBIT "B" . . : .~ ! I I .. ~ ~ ~ ,. . -.l. - 0 - 0 -l-.. -. -.r -:- _O~O - 0 -. -l-. - 0 -l- 0 - - °t"- 0 - 0 _o¡-. -. - 0 -"t 0 _0 -. - °T- I 27 \ 26 ! 25 ~II~ 30 i 29 i 28 i 27 i 26 i 25 ~I¡ , I I I I I I I :: .:: CITY OF CLERMONT t -t-.-.-. -.-.-+-.-.-+.-.-.-+ ~':=~ . .- J , I -..- tTOWNSH~ ~ - TOWNSHIP 23 8 I ' ~ ~ -..t..-..-..-.. , I . I -..t..-..-..-.. I. I I -"t..-..-..-.. I ,..--~-- ¡ ~ -..+..-..-.. .. 15 33 34 3~ I -_J_---+~ ---J-~~!- ì . TOWNSHIP 23 8 .¡ : 3: i r--l ! \ \ I .-..-..-.+..-.-.-..+..-. .-..t"-"-"-"T"- I - I 11 : 12 ! . ._..-t-.. - .-..-. +- .-.-" -.. +. -.. -.. -.' t..- I I I 15 14 13 34 3 4 10 ,23 24 27 26 25 -..+..-.. "-"1""-" - ! 36 ~ !.O~ ..23 --!- -' - ~ TOWNSHIP 24 8 ~ , . I I -+---- . I I I I -..+..-..-..-.. I I I I -"T"-"-"-" I : : I I . ' WI~ 18 i 17 i 16 ~IN ¡ ¡ ~Ii : : - "f"-" -.. -. .-t-" -.,-,.-.'t" -,. -.. i . i I I 6 ~ 1- 7 ¡.r-~~ QRAPIIC SCALE LEGEND: ~ EXISTING LAKE UT1UTY SERVICES SERVICE AREA 21 -..+..-..-..-.' .' . .' ' I I I I ¡ 28 ! 27 ! 6 ! 25 ~I~ -..+.. -.. -.. -.. ~.. -.' -.. -.. ~ .-. .-.. -.' ¡..-.. -.. -. ~li.- . ' , . I i i ¡¡I ~ PROPOSED LAKE l1T1UTY SERVICES SERVICE AREA - AOREED ~ - - - - EXISTING crTY OF Cl.J:RMONT SERVICE AREA BOUNDARY PROPOSED CrTY OF CLERMONT SERVICE AREA BOUNDARY - AOAEED ~ ~ SHARED SERVICE AREA Activity Nam. Dale AGREED SERVICE AREA ADDITIONS Dell ned : SNR 2/03 &. 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' ".. ,¡, \,.,..' ,- ".""", ,.- "".,.;,', .. ,,: : ;~" ..'.'\, t.' . ..' " ," " ;"', ' . i.i:~:?':';~':.: ""~.~;~ " ""..-.."" .' .'. .. " " "., ' .." " . 'I , , ,....c ., .'. .', ,.,i , , '.\' '..; ," '..", ".' ,.," ,.' " ...¡'" ". BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION IN RE: Application of ) LAKE UTILITY SERVICES, INC. ) for extension of water and ) Docket No. 020907-WS wastewater service in ) Lake County, Florida. ) ) OBJECTION TO APPLICATION FOR AMENDMENT TO CERTIFICATES OF AUTHORIZATION AND. REOUEST FOR FORMALADMINISTRATIVE HEARING Petitioner,the City of Clermont,by and through undersigned counsel,hereby supplements its previously filed objection to the Application of Lake Utility Services, Inc. (hereafter, "Lake Utility")and request a formal hearing pursuant to § 120.569 and 120.57 Florida Statutes,Rule 28- 106.201,Rule 25-30.031 and Chapter 25 -22,Florida Administrative Code,and does hereby state: 1. The City of Clermont (the "City") is a municipality located within Lake County, Florida and possessing all corporate powers and authority as granted by the Constitution and laws of the State of Florida including those set forth in Chapter 180, Florida Statutes. 2. Chapter 180,Florida Statutes provides for,among other provisions,the authority of a municipality to provide municipal public works both within its municipal boundaries and the extension and execution of all of its corporate powers for the promotion of the public health,safety and welfare beyond its corporate limits, including the provision of water and wastewater services within its municipal boundaries and within a 5 mile service area pursuant to Section 180.02(3), Florida Statutes. 3. Lake Utility is an existing utility which has filed an Application for Amendment of Certificates 465-S and 496-W(the"Application")to extend its water and wastewater service areas. DOCUMENT N1 M?r'1r-DATE I It I00 DEC 30 FPSC-COri'iIS"1ON CLERK 4. The City will be substantially affected if the Application filed by Lake Utility is granted. 5. The City objects to the Application filed by Lake Utility for the following grounds: a. The proposed amendment is inconsistent with the Lake County, Florida Comprehensive Plan and the Comprehensive Plan of the City.' b. Lake Utility-does not have either the financial or the-technical ability to provide water and wastewater,serviceto the proposed area. c. Lake Utility has failed to comply with the provisions of 25-30.036(2),Florida Administrative Code. d. Lake Utility is not is capable of serving the proposed area with its existing water and wastewater treatment facilities. e. The City provides water and wastewater utility services within the proposed area and has the capability of providing water and wastewater service to the area sought to be included within the proposed amendment. f. The granting of the Application of Lake Utility will result in a duplication of service in the proposed area. g. The granting of the Application of Lake Utility is not in the public interest. WHEREFORE, the Petitioner respectfully requests that this matter be set for a formal Administrative Hearing and that the application of Respondent be denied. 'See Document No. 10210-02, Letter to Timothy Devlin, Director, Division of Economic Regulation to Charles Gauthier,AICP Chief, Comprehensive Planner,dated September 20, 2002. 2 Respectfully submitted, MAUREEN-McCARTHYDAUGHTON I yr Florida Bar No. 0655805 GREGORY T. STEWART Florida Bar No. 203718 BRIAN ARMSTRONG- Florida Bar No.888575 Nabors, Giblin&Nickerson, P.A. 1500 Mahan Drive, Suite 200 `Tallahassee, Florida 32308 (850)2244070 (850)'224-4073 (facsimile) ATTORNEYS FOR CITY OF CLERMONT, PETITIONER 3 f i • CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing has been furnished by U.S. Mail to MARTIN S. FRIEDMAN, ESQ., Rose Supdstrom & Bentley, LLP, 650 N. Lake Boulevard,Suite 420,Altamonte Springs,Florida 32701 and DONNA HOLSHOUSER STINSON, ESQUIRE, Broad and Cassel, 215 S. Monroe Street, Suite 400, P.O. Drawer 11300, Tallahassee, r _ Florida 32302,on this 3( ",day of December,2002. ( I 1 ( MAUREEN McCARTHY DAUGHTO F:\WPDATA\CNIL\02163\Pleadings\Objection to Application for Amendmt,etc 12-19.02.wpd 4 • • IN THE CIRCUIT COURT FOR THE FIFTH JUDICIAL CIRCUIT, IN AND ,FOR LAKE COUNTY, FLORIDA LAKE UTILITY SERVICES, INC. Plaintiff, ... .y,r-tpa ._ u vs. CASE NO. 2003-CA-87,' fen' Nra • v rig rn CITY OF CLERMONT r FLORIDA, 14 GD ro G.ti:O A Defendant. o� +u / A- W ORDER THIS CAUSE HAVING COME TO BE HEARD on the Joint Motion for Approval of' Settlement Agreement filed by the parties and the Court being fully advised of the premise; IT IS ORDERED AND ADJUDGED that the Settlement Agreement filed herein is approved by the Court and all parties are ordered to comply therewith. The Court retains jurisdiction of this matter solely for the purpose of enforcement of the Settlement Agreement. DONE AND' ORDE— '.- IN CHAFERS in Tavares, Florida, this day of \ i pit./ ', 2003. ®/ ,/ Circui Judge Copies to: Martin Friedman CFN 2003128121 Gregory T. Stewart CFN ages 12Bert Guthrie Bk 02422 Pg 1150; (1pg1 DATE: 10/03/2003 12:41:32 PN JAMES C. WAlK INS, CLERK OF COURT . LAKE COUNTY RECORDING FEES 0.00 Intioninnuitimitionfinnunnuminim . '1