Title: Water Supply Agreement For Starkey Wellfield
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Permanent Link: http://ufdc.ufl.edu/WL00004695/00001
 Material Information
Title: Water Supply Agreement For Starkey Wellfield
Physical Description: Book
Language: English
 Subjects
Spatial Coverage: North America -- United States of America -- Florida
 Notes
Abstract: Jake Varn Collection - Water Supply Agreement For Starkey Wellfield
General Note: Box 28, Folder 2 ( West Coast Regional Water Supply Authority Agreements - 1976-1982 ), Item 11
Funding: Digitized by the Legal Technology Institute in the Levin College of Law at the University of Florida.
 Record Information
Bibliographic ID: WL00004695
Volume ID: VID00001
Source Institution: Levin College of Law, University of Florida
Holding Location: Levin College of Law, University of Florida
Rights Management: All rights reserved by the source institution and holding location.

Full Text



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WATER SUPPLY AGREEMENT

FOR

STARKEY WELLFIELD

THIS CONTRACT entered into this /f -- day of C-k-Ye c.. I),

1981, by and between the WEST COAST REGIONAL WATER SUPPLY AUTHORITY, a public

body created pursuant to Chapter 74-114, Laws of Florida, hereinafter referred

to as "AUTHORITY," the CITY OF NEW PORT RICHEY, a municipal corporation, here-

inafter referred to as "CITY," and PASCO COUNTY, a political subdivision of the

State of Florida, hereinafter referred to as "PASCO."

WITNESSETH :

WHEREAS, the SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT, hereinafter

referred to as "DISTRICT," owns certain real property, which was acquired for

water management and multi-use purposes; and

WHEREAS, the DISTRICT has granted the AUTHORITY an exclusive license

for a term of thirty-five (35) years with the option to renew for an additional

thirty-five (35) years to construct, maintain, operate, expand and control

Water Production Facilities on that certain real property owned by the DISTRICT;

and

WHEREAS, the AUTHORITY desires to produce water from certain real

property owned by the DISTRICT; and

WHEREAS, the CITY and PASCO desire to purchase said water at

cost.

NOW, THEREFORE, in consideration of the premises, which shall be

deemed an ih-tegral part of this Contract, and of mutual covenants and agreements

set forth in this Contract, the AUTHORITY, CITY and PASCO, intending to

be legallybound thereby, agree as follows:

1. DEFINITIONS. Certain terms having specific definitions are

used in this Contract. These terms, and their definitions, are as follows:

1.1. Actual Water Charge. For any Contract Year, the sum of

the actual Operating and Maintenance Costs, Debt Service Costs, and Capital

Replacement Costs incurred by the AUTHORITY during such Contract Year.

1.2. Capital Replacement Costs. For any Contract Year, all costs

incurred by the AUTHORITY during such Contract Year for the replacement of
portions of the Water Production Facilities, as well as expansion of the Water

Production Facilities for the purpose of increasing production or delivery of


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water, provided that Capital Replacement Costs shall include only actual

replacement or expansion expenditures and shall not include depreciation.

1.3. Contract Year. The fiscal year of the AUTHORITY beginning

on October 1, 1981, and ending on September 30, 1982, and each fiscal year of

the AUTHORITY (beginning on each October 1, and ending on the day immediately

following September 30) thereafter during the term of this Contract.

1.4. Debt Service Costs. For any Contract Year, all costs

incurred by the AUTHORITY during such Contract Year, for principal payments,

interest payments, redemption premiums, if any, and service charges with

respect to the amortization of the Revenue Bonds.

1.5 Delivery Point. The AUTHORITY agrees to deliver water

at points) agreed to by the CITY, PASCO and AUTHORITY.

1.6. Delivery Schedule. For any Contract Year, the written

schedules prepared by the CITY and PASCO, and delivered to the AUTHORITY that

details the daily water requirements of the CITY and PASCO for water to be

delivered at the Delivery Point.

1.7. Estimated Water Charge. For any Contract Year, the sum of

the following costs for the Water Production Facilities:

1.7.1. The product obtained by multiplying Operating and

Maintenance Costs budgeted by the AUTHORITY for such Contract Year after deduc-

ting the Facilities Use Cost by 1.10; and

1.7.2 The product obtained by multiplying the Debt

Service C6iits bydgeted by the AUTHORITY for such Contract Year by 1.25, prior

to previous Contract Year adjustments; and

1.7.3 The Capital Replacement Costs budgeted by the

AUTHORITY for such Contract Year.

1.8 Facility Use Costs. For any Contract Year, that element

of the Operating and Maintenance Costs which represents all costs incurred by

the AUTHORITY during such Contract Year for the payments called for in

Exhibit "D" of Paragraph 7 of the Water Transfer and Management Agreement.


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1.9. Operating and Maintenance Costs. For any Contract Year,

all costs, excluding depreciation, incurred by the AUTHORITY in operating, main-

taining and securing the Water Production Facilities during such Contract Year

(regardless of the quantity of water, if any, being produced or delivered by

the AUTHORITY), including, but not limited to, the general and administrative

costs of the AUTHORITY related to the operation, maintenance.and security of

the Water Production Facilities (as determined by audit) and the capital

expenditures of the AUTHORITY for items such as tools, equipment and vehicles

necessary for the operation, maintenance and security of the Water Production

Facilities, and the Facilities Use Cost incurred by the AUTHORITY.

1.10. Permits. All licenses, permits and other approvals from

any government or governmental agency, whether federal, state or local, neces-

sary or convenient for the acquisition, construction and operation of the

Water Production Facilities, including, but not limited to, consumptive use

permits from the DISTRICT.

1.11. Revenue Bonds. The bonded indebtedness of the AUTHORITY

incurred pursuant to that certain bond resolution, a copy of which upon execu-

tion by the AUTHORITY is to be attached to this Agreement as Exhibit "A"

and by this reference made a part hereof.

1.12. Starkey Wellfield. That certain real property owned by

the DISTRICT and legally described in Exhibit "B," attached hereto and made

a part hereof. Should the DISTRICT acquire additional real property to ex-

pand the above-described tract and should this property prove capable of

supplying wate'~-this term shall also include said real property. Also,

this term shall include any rights-of-way which may be acquired by the DIS-

TRICT or AUTHORITY or CITY or PASCO in the future to connect the herein

described property with the 84" or 66" Transmission Lines.

1.13. Water Entitlement. Initial delivery of water shall com-

mence October 1, 1981, or thirty (30) days after the date of execution of this

agreement, whichever is later. For any Contract Year, the amounts of water

committed to be delivered by the AUTHORITY to the CITY and PASCO from the

Starkey Wellfield at the Delivery Point during such Contract Year, which com-

mitted amounts shall not exceed those amounts set forth in the following

schedules except as provided in 1.13.3.


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1.13.1 The CITY'S Water Entitlement:


Contract Year

Commencing

October 1,

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990 and
thereafter


Average Daily

Delivery (MGD)

3 mgd

3 mgd

3.5 mgd

3.7 mgd

4.0 mgd

4.3 mgd

4.6 mgd

4.9 mgd

5.2 mgd.

5.5 mgd


Maximum Daily

Delivery (MGD)

5 mgd

5 mgd

5 mgd

5.4 mgd

5.8 mgd

6.2 mgd

6.6 mgd

7 mgd

7.4 mgd

7.8 mgd


Maximum Annual

Entitlement (MG)

1,095 mg

1,095 mg

1,277.5 mg

1,350.5 mg

1,460 mg

1,569.5 mg

1,679 mg

1,788.5 mg

1,898 mg

2,007.5 mg


1.13.2 PASCO'S Water Entitlement:


Contract Year

Commencing

October 1,

1981

1982

1983

1984

1985

1986 "

1987

1988

1989

1990 and
thereafter


Average Daily

Delivery (MGD)

0 mgd

2 mgd

4.5 mgd

4.3 mgd

7 mgd

6.7 mgd

6.4 mgd

6.1 mgd

5.8 mgd

5.5 mgd


Maximum Daily

Delivery (MGD)

0 mgd

4 mgd

7.5 mgd

7.3 mgd

7.0 mgd

6.7 mgd

6.4 mgd

6.1 mgd

5.8 mgd

5.5 mgd


Maximum Annual

Entitlement (MG)

0 mg

730 mg

1,642.5 mg

1,569.5 mg

2,555 mg

2,445.5 mg

2,336 mg

2,226.5 mg

2,117 mg

2,007.5 mg


1.13.3 All water produced by the AUTHORITY from the Water Pro-

duction Facilities shall be for the water supply needs of the CITY and PASCO.

The CITY and PASCO shall have the right to authorize the AUTHORITY to sell sur-

plus water (water in excess of the CITY'S and PASCO'S daily needs), and the

AUTHORITY shall utilize its best efforts to sell same. Should an emergency

arise in one of the AUTHORITY'S users and there is surplus water (water that


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is in excess of the CITY'S or PASCO'S daily needs) available, the AUTHORITY

may with written notice and prior approval of the CITY and PASCO sell the

surplus water to other users of the AUTHORITY.

The parties hereto recognize that the CITY and PASCO

will have increasing water supply needs. The CITY or PASCO upon giving the

AUTHORITY two (2) years prior notice may increase their entitlement over

what had been projected under the entitlement. Required additional Water

Production Facilities or expansion shall be financed by the Capital Replace-

ment Costs and/or other sources of funds from the CITY and/or PASCO.

1.14. Water Production Facilities. All pumps, pipes and

appurtenant and associated facilities acquired pursuant to the Water Trans-

fer and Management Agreement or constructed by the AUTHORITY at Starkey

Wellfield, with proceeds from any source or from the sale of the Revenue

Bonds and interest earned on said proceeds, as well as future replacements

and expansions financed by the water charge for the purpose of producing

and delivering water to the CITY and PASCO pursuant to this Agreement.

1.15. Water Transfer and Management Agreement. That certain

agreement between the DISTRICT, the AUTHORITY and the CITY, a copy of which

is attached hereto as Exhibit "C."

2. TERM. Except as provided in this Section 2, the term of

this Agreement shall commence on the date of its execution and end on the

thirty-fifth (35th) year with the option of the CITY and/or PASCO to renew

for an additional 35 years. This Agreement shall terminate without further

action by any bTthe parties either where the AUTHORITY does not sell,

deliver and receive payment for the Revenue Bonds or other method of

financing on or before November 1, 1982, or where the AUTHORITY violates

its obligations under Paragraphs 5 and 8 of the Water Transfer and

Management Agreement.

3. DELIVERY OF WATER. Water delivered pursuant to the Water

Entitlement for each Contract Year shall be delivered by the AUTHORITY to

the CITY and PASCO as follows:

3.1. Water Delivery Schedule. On or before May 1, 1982, and

on May 1, immediately preceding each Contract Year, the CITY and PASCO shall

deliver to the AUTHORITY the Delivery Schedules for each Contract Year. The

CITY'S and PASCO'S Delivery Schedules may be amended by the CITY or PASCO at


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any time by written notice delivered to the AUTHORITY, provided that any

such amendment shall have a prospective effective date and affords reasonable

notice to the AUTHORITY. Neither the CITY'S Delivery Schedule nor PASCO'S

Delivery Schedule shall require deliveries of water in daily or annual amounts

greater than their respective maximum daily delivery or the maximum annual

entitlement specified for such Contract Year in Section 1.13. In any event,

for each Contract Year, both PASCO and the CITY shall take no less than

1,000 gallons per day or 365,000 gallons per year of their Water Entitlement.

3.2 Water Delivery by the Authority. During each Contract

Year, the AUTHORITY shall use its best efforts to deliver the amount of

water to which the CITY and PASCO are entitled for such year at the Delivery

Points, in accordance with the Delivery Schedule for such Contract Year.

However, in no event shall the AUTHORITY be required to deliver water to

the CITY and PASCO in excess of any Permits.

4. WATER CHARGE. For each Contract Year, the CITY and PASCO

shall pay to the AUTHORITY their respective portions of the Actual Water

Charge for such Contract, as follows:

4.1. Estimated Water Charge. On or before June 15, 1982,
and on June 15, immediately preceding each Contract Year, the AUTHORITY shall

deliver written notices to the CITY and PASCO of their respective portions of

the Estimated Water Charge for such Contract Year. The written notices shall

be accompanied by a budget, detailing the expenditures anticipated by the

AUTHORITY in computing the Estimated Water Charge.

4.f. Payment of All Water Charges. Payment of all water
charges by the CITY and PASCO for each Contract Year shall be to the AUTHORITY

in monthly payments on or before the 15th of each calendar month during such

Contract Year. The monthly payment by the CITY shall be determined by multi-

plying the actual amount of water delivered by a fraction whose numerator is

the Estimated Water Charge and the denominator of which is the CITY'S water

Delivery Schedules for the subject Contract Year; provided, however, that the

CITY shall make a minimum monthly payment at least equal to the amount obtained

by multiplying the CITY'S portion of the Estimated Water Charge by 0.0583.

For purposes of determining CITY'S minimum monthly charge, the CITY'S portion

of the Estimated Water Charge shall be calculated by multiplying the Estimated


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Water Charge by a fraction, whose numerator is the CITY'S maximum annual Water

Entitlement for such Contract Year and whose denominator is the sum of the

CITY'S and PASCO'S maximum annual Water Entitlement for such Contact Year.

The monthly payment by PASCO shall be determined by multiplying the actual

amount of water delivered by a fraction, whose numerator is the Estimated Water

Charge and the denominator of which is PASCO'S Water Delivery Schedules for

the subject Contract Year; provided, however, that PASCO shall make a minimum

monthly payment at least equal to that obtained by multiplying PASCO'S portion

of the Estimated Water Charge by 0.0583. For purposes of determining PASCO'S

minimum monthly charge, PASCO'S portion of the Estimated Water Charge shall

be calculated by multiplying the Estimated Water Charge by a fraction, whose

numerator is PASCO'S maximum annual Water Entitlement for such Contract Year,

and whose denominator is the sum of the CITY'S and PASCO'S maximum annual

Water Entitlements for such Contract Year. If at any time during a Contract

Year, the AUTHORITY determines that an expenditure properly includable in

the CITY'S and/or PASCO'S Actual Water Charge for such Contract Year has

exceeded or will exceed, the amount budgeted for such expenditure in the

computation of the CITY'S and/or PASCO'S portions of the Actual Water Charge

for such Contract Year, then the AUTHORITY shall notify the CITY and/or PASCO

in writing. Thereafter, each remaining monthly payment by the CITY and PASCO

of their respective portions of the Estimated Water Charge for such Contract

Year shall be increased by a pro rata portion of such excess expenditure.

4.3. Accounting Audits and Adjustment for Actual Water Charge.

The AUTHORI.TY shall maintain separate accounts and records for funds received
and disbursed by it with respect to each of the constituent elements (Operating

and Maintenance Costs, including the Facilities Use Costs, Debt Service Costs,

Capital Replacement Costs) of the CITY'S and PASCO'S respective portion of the

Estimated Water Charge. On or before each January 31, the AUTHORITY shall have

completed an independent audit of the aforesaid accounts and determine the CITY'S

and PASCO'S respective portions of the Actual Water Charge for such immediately

preceding Contract Year, and each of the monthly payment with respect to the

CITY'S and PASCO'S respective portion of the Estimated Water Charge for the

current Contract Year that remains unpaid at the time of the audit shall be

increased or decreased as the case may be, by a pro rata portion of the balances

or deficits, if any, thus determined in said separate accounts. The AUTHORITY

agrees that should PASCO or CITY dispute the audit, the AUTHORITY shall refer


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the matter pursuant to the provisions of Chapter 120, Florida Statutes, to a

hearing officer from the Division of Administrative Hearings of the Department

of Administration.

4.4. Source of Payments. The obligation of the CITY and PASCO

to pay any monies due under this Agreement and to pay any liabilities incur-

red by the CITY or PASCO for any breach of this Agreement, do not constitute

general indebtedness of the CITY or PASCO within the meaning of any constitu-

tional, statutory or charter provision limiting the amount and nature of

indebtedness that may be incurred by the CITY and PASCO. The obligations and

liabilities of the CITY and PASCO under this Agreement are payable solely from

the operating and maintenance account of the CITY'S and PASCO'S Utility System.

Neither the AUTHORITY nor the holders of the Water Production Facilities Revenue

Bonds shall have the right to require or compel the CITY or PASCO to exercise

its ad valorem taxing power to pay its obligations and liabilities under this

Agreement or to compel payment from any source other than as indicated in

this paragraph.

5. ADDITIONAL REPRESENTATION AND WARRANTIES OF THE AUTHORITY. The

AUTHORITY hereby represents and warrants to the CITY and PASCO as follows:

5.1. Water Quality. The AUTHORITY will use its best efforts

to deliver to the CITY and PASCO untreated water of a good and uniform quality.

5.2. Water Measurement. The AUTHORITY shall measure all water

delivered by it to the CITY and PASCO at the Delivery Point with measuring

devices and equipment acceptable to the AUTHORITY, the CITY and PASCO. The

AUTHORITY shall install, operate, maintain, examine, test and service such

measuring devices and equipment so as to ensure maximum accuracy. The AUTHORITY

shall maintain complete and accurate records of its water measurements. The

said measuring devices and equipment and records shall be available for in-

spection by the CITY or PASCO upon reasonable notice.

5.3. Pledge of Contract Revenues. The AUTHORITY shall pledge

all payments, interest or other income in revenues derived by it under this

Agreement for the purposes and subject to the priorities, set forth in th

Bond Resolution of the AUTHORITY, a copy of which is attached hereto as Exhi-

bit "A." After the AUTHORITY has fully paid all principal, interest, redemp-

tion premiums, if any, and service charges with respect to the amortization

of the Revenue Bond, all interest or other income derived by the AUTHORITY


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from the payment by the CITY and PASCO of their respective portion of the

Estimated Water Charge, in accordance with Section 4, shall be used by the

AUTHORITY to reduce the CITY'S and PASCO'S Actual Water Charge under this

Agreement.

5.4. Permits. The AUTHORITY shall use its best efforts to

obtain all Permits.

6. ADDITIONAL REPRESENTATION AND WARRANTIES OF THE CITY AND PASCO.

The CITY and PASCO hereby represent and warrant to the AUTHORITY as follows:

6.1. Irrevocable Commitment to Pay. The CITY and PASCO recog-

nize that circumstances, such as equipment failure, construction delays,

limitations on all permits, acts of God, etc., may prevent the performance

by the AUTHORITY of its obligations pursuant to this Agreement generally and

Sections 3 and 5 of this Agreement specifically. Nevertheless, the CITY and

PASCO shall pay their respective portions of the Actual Water Charge, their

respective portions of the Estimated Water Charge, and the minimum monthly

charges for every Contract Year throughout the term of this Agreement in the

manner provided in Section 4. Said payments by the CITY and PASCO shall be

made without notice or demand and without setoff, counterclaim, abatement,

suspension or deduction, except as provided in Section 4. The CITY and PASCO

recognize that the AUTHORITY is undertaking the acquisition and construction

of the Water Production Facilities generally, and the issuance and sale of

the Revenue Bonds specifically, in reliance on the representation and

warranty of the CITY and PASCO set forth in this Section 6.1.

6.2. Utility System Charges. The CITY and PASCO shall fix,

revise, maintain and collect such fees, rates, rentals, or other charges for

the use ,of the products, services, and facilities of their utility systems

as shall be necessary to fund the timely payment of the CITY'S and PASCO'S

respective obligations and liabilities under this Agreement.

6.3. Utility System Operation and Maintenance Account. The

CITY and PASCO shall maintain their respective utility system operation and

maintenance accounts throughout the term of this Agreement for purposes of

paying their obligations and liabilities under this Agreement. At all times

during the term of this Agreement, the rights of the creditors and obligees

of the CITY and PASCO who are to be paid from the operation and maintenance

accounts of the CITY'S and PASCO'S utility systems, including the AUTHORITY


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shall be prior and superior to the rights of any other creditors and obligees

of the CITY and PASCO, who are to be paid from the fees, rates, rentals,

revenues or other charges of the said utility systems.

6.4. Permits. The CITY and PASCO shall use their best effort

to assist the AUTHORITY in obtaining all Permits.

7. BOND HOLDERS AS THIRD PARTY BENEFICIARIES. The AUTHORITY, the

CITY and PASCO all agree that holders of the Revenue Bonds shall be third

party beneficiaries of this Agreement and of the rights, obligations, repre-

sentations and warranties of the AUTHORITY, the CITY and PASCO, pursuant to

this Agreement.

8. DESIGNATION AS REPRESENTATIVE. The AUTHORITY, the CITY and

PASCO shall be co-applicants in any administrative or judicial proceedings

necessary for the issuance of any Permits relating to the acquisition, con-

struction or modification of the Water Production Facilities, or for the

modification or renewal of any existing or future Permits. The CITY and PASCO

designate the AUTHORITY as its representative in any such proceeding.

9. PRIOR AGREEMENTS. This Agreement shall supersede any and all

other agreements between the AUTHORITY, the CITY and PASCO to the extent that

the terms and provisions of any such agreements conflict with the terms and

provisions of this Agreement.

10. NOTICES. Any notices or other writings permitted or required

to be delivered pursuant to this Agreement shall be delivered to the AUTHORITY

at its General Manager's office, to the CITY at its City Manager's office, and

to PASCO at its County Administrator's office.

11. CONSTRUCTION. This Agreement shall be governed by, and construed

in accordance with, the laws of the State of Florida. Further, the AUTHORITY,

the CITY and PASCO, recognizing the CITY'S and PASCO'S interest in securing a

reliable source of supply to meet its water needs, agree that the obligations

of the AUTHORITY to deliver water to the CITY and to PASCO, as set forth in

Section 3 hereof, may be specifically enforced in a court of law. Said remedies

shall be the CITY'S and PASCO'S exclusive remedy under this Agreement.

12. SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT AS A THIRD PARTY
BENEFICIARY. As a result of the DISTRICT'S interest in the Water Transfer

and Management Agreement, it is agreed that the DISTRICT is a third party

beneficiary herein.


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13. AMENDMENT. This Agreement may be amended only by a writing duly

executed by the AUTHORITY, the CITY and PASCO, but, in no event, shall any

such amendment diminish, restrict, or infringe the rights of the holders of

the Revenue Bonds as third party beneficiaries of this Agreement.

14. ASSIGNMENT AND TERMINATION. No assignment or transfer of this

Agreement or any part hereof, shall be made unless approved by the AUTHORITY,

the CITY and PASCO. However, the foregoing shall not preclude or adversely

affect the pledge and assignment by the AUTHORITY of the revenues received

by the AUTHORITY pursuant to this Agreement to the benefit of the bond holders

of the Revenue Bonds issued in connection with the financing of the Water

Production Facilities. If any event results in the termination of this Agree-

ment, then the CITY and PASCO shall pay directly, when due, all outstanding

principal payments, interest payments, redemption premiums, if any, and all

services charges with respect to the amortization of the Revenue Bonds out

of legally non-ad valorem funds available from sources as provided for in

Paragraph 4.4. Provided further that the CITY and PASCO agree that said pay-

ments shall have priority in accordance with Paragraph 6.3, despite the

termination of this Agreement.

15. FILING. On the date of the execution of this Agreement, a copy

of the executed original of this Agreement shall be filed with the Clerk of the

Circuit Court of Pinellas and Pasco Counties, Florida.

IN WITNESS WHEREOF, THE AUTHORITY, the CITY and PASCO have executed

this Agreement on the day and year first above written.


WEST COAST REGIONAL WATER SUPPLY AUTHORITY


Secretary


COUNTY OF PASCO





CITY OF NEW PORT RICHEY

May/ or
/ / /, /
Mayor /


Page 11 of 11


C__~i--zcn ;n-c:.


Slerk /
Vi_


















STATE OF FLORIDA

COUNTY OF PINELLAS


The foregoing instrument was acknowledged before me this 1\i day

of C __, 1982 by Corinne Freeman and Gene Heath

as Chairman and Secretary, respectively, of the West Coast Regional Water

Supply Authority.

r

Notary Public
NOTAm AMIC STATE 0O RlXPOA At WAO
My Commission Expires ay C() wcMiONPtfl A*X, i 10i





STATE OF FLORIDA

COUNTY OF PASCO


The foregoing instrument was acknowledged before me this 27th day of

April 1982 by Barry M. Doyle and Mary Petersen,

as Chairman and Deputy Clerk, respectively,



of the County of Pasco.

iI-

Notary Public
State of Florida at Large
My Commission Expires r ''::. st : !.we
B'ln ,j I A ., uF '. 'v Co .iv




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