Is Lake Worth over-charging its neighbors for water or is it just good business? He who controls the water, controls the world.
Tonight under New Business is an agreement for legal services:
EXECUTIVE BRIEF TITLE: Agreement for Legal Services with Manson Bolves Donaldson P.A
SUMMARY: The City Attorney recommends entering an agreement for legal services with Manson Bolves Donaldson P.A.
BACKGROUND AND JUSTIFICATION: Several months ago the City Manager entered into an agreement not to exceed $25,000 with Manson Bolves Donaldson PA (“Firm”) to defend the City against a lawsuit filed by Lake Osborne Waterworks, Inc. (“Plaintiff”). The claim relates to the City’s provision of potable water to Plaintiff (formerly known as Lake Osborne Utilities Company), a regulated utility company under Florida law.
I guess he didn't realize, at the time, the seriousness of the charges or he didn't want to have it come before the commission. Now he has to get their approval to spend more money on a trial that begins in less than two weeks.
On or about 1974, the City entered into an agreement with Lake Osborne Utilities Company to furnish potable water from the City so that Lake Osborne Utilities Company could provide water services to its retail customers, all of whom lie outside the City limits. Plaintiff subsequently acquired Lake Osborne Utilities Company. Plaintiff claims that the agreement with the City expired in 2008 and since that time the City has charged and collected excessive rates. The Plaintiff asks the court to invalidate the City’s fees, rates and charges and award it damages for all overcharges dating back to October 9, 2008, along with all attorney’s fees and costs to bring the claim. Currently, the case is scheduled to go to trial beginning on August 31st. Due to the specialized nature of Plaintiff’s claim against the City, the Firm was retained to provide its expertise in utility rate cases involving a regulated utility.
I reported on this suit a little over one year ago where Lake Osborne Waterworks, (remember Aqua Utilities?) a company that buys water from Lake Worth and distributes it through their pipes, sells it to Lake Osborne Estates (just down the road from me) filed a suit against Lake Worth. The single family residences in Lake Osborne Estates are charged as if they are multi-users. Bill Coakley, president of Lake Osborne Estates Civic Association, says that Lake Worth is playing "hard ball."
Plaintiff claims are true. Lake Osborne Heights is serviced by this company that buys the water from us. The residents are paying nearly double our rate and our rate is enormous. As the president of this neighborhood says, "Lake Worth Utilities refuses to offer a bulk water deal. It's quite unrealistic for us to be paying nearly double what a LW resident pays for the same water."
So I ask again, is Lake Worth taking advantage of its neighbors or is this just a smart business decision? We have spent multi-millions on our water plant. Are people who are not serviced by Lake Worth entitled to better rates or the same rates that we pay? This is a question that will be decided in the courts.
Sounds like Lake Worth is being a horrible bastard to their neighbors. The question is legally, CAN Lake Worth be horrible bastards to their neighbors?
ReplyDeleteThe lawyers get richer-we poor taxpayers are permanently bent over for this city.And our roads don't get fixed.
Do you realize that Lake Osborne Waterworks adds their 'markup' on the water they buy from Lake Worth? Hell yes, we should charge them more than LW residents. We're the ones who spent our tax payer money to finance, build the plant and maintain it.
ReplyDeleteIf Lake Osborne Waterworks doesn't like the pricing, they have options. 1) build their own plant, 2) find a new supplier, 3) negotiate a better deal. Ya don't get to consume a product at an agreed price and then come back years later complaining and want your money back. I'd like yo see them try that with Papa Johns, PBSO, or the next time their unhappy with the Dolphins or Marlins win record.
As much as I feel for my neighbors south of me, I agree with you at 2:17. But I haven't seen the contract that supposedly expired in 2008 and what it said when Aqua bought its water from us.
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