Mediterranea Palm Property Subsidiary (“Mediterranea”), a Delaware limited liability company authorized to do business in the State of Florida, directly involved in the construction of homes[HC1], is situated within the City of Riviera Beach and serviced by the City of Riviera Beach Utility Special District (“USD”).

Mediterranea desires to enter into a Memorandum of Understanding (“MOU”) with the USD, to provide a general plan for resolving certain outstanding issues related to the operation and maintenance of the water and wastewater system currently owned by Mediterranea Community Development District (“CDD”).

The MOU provides a plan for Mediterranea to install certain approved backflow preventer and associated pipes, fittings, and appurtenances for the operation of the USD master meter. The MOU provides that Mediterranea intends to grant the USD a non-exclusive utility easement overtop all existing and newly constructed water and sewer infrastructure within the Arbor Parc development.

The MOU provides a plan for the USD staff to submit to the USD Board for its consideration an Interim Operation and Maintenance Service Agreement of the water and sanitary sewer system currently owned by the CDD in which the USD, and any hired contractors, would perform water distribution and wastewater collection operational and maintenance duties, and Arbor Parc in turn would be required to pay a standard rate of pay for said services. 

The MOU also provides that USD staff will conduct a review and assessment of the water and wastewater/sewer system currently owned by the CDD, and submit the Florida Department of Environmental Protection water and sewer release application to the USD Board for its consideration in acquiring the system and maintaining the system.

A key component of the MOU is that the terms are negotiable and any and all terms related to the acquisition, operation, and maintenance of the water and wastewater system owned by the CDD must be approved by the USD Board.

The USD and CDD agree that nothing contained in the MOU will create a binding obligation, however, the parties are committed to exploring new ways to resolve the outstanding issues related to the operation and maintenance of the water and wastewater system and services to its customers. The term of this Memorandum of Understanding shall be from the date of execution by all parties until December 1, 2020.