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HomeMy WebLinkAboutOrdinance 78-6 AmendmentRECEIVED JUN 1 6 1980 General Development Corporation June 12, 1980 Daniel Kilbride, Esq. Sebastian Attorney 2065 15th Avenue Sebastian FL 32958 Re: Sebastian Water & Sewer Franchise Dear Dan: Wayne L. Allen Vice President and Assistant General Counsel • The following is the language I would recommend for consi- deration by the City in amending Paragraph "f" on Page 4 of Ordinance 78-6. Our concerns would be resolved if the second sentence of Paragraph "f" read as follows: "At this time the franchise holder shall convey unencumbered all of its -facilities together with all easements, to the -City of Sebastian, without charge as to all property contributed to the utility, provided further, however, that the City shall have the right to purchase the remaining assets of the utility based on a price as com- puted and agreed upon by three competent and qualified appraisers. The City shall select an appraiser, the Utility shall select an appraiser, and these two appraisers shall mutually agree upon and select a third independent appraiser and these three appraisers shall arrive at the value of the utility and the sales price involved. How- ever, the City shall not be required to purchase and no value will be placed on additions or exten- sions to the system which were paid for as contri- butions -in -aid -of -construction by any person, firm or corporation other than the Utility. At the end of the franchise period, the City shall not be required to pay to the Utility any amount for goodwill and the appraised value shall be based entirely upon physical assets only, and provided further that in the event said Board of Appraisers cannot agree as to the price to be paid by the City, then the City may file appropriate condemnation pro- ceedings under Florida law. Any franchise granted by the City shall include the above requirement." 11 1 t South Bayshore Drive. Miami. Florida 33131 Telephone X05 350 1231 V - Daniel Kilbride, Esq. Re: Sebastian Water & Sewer Franchise June 12, 1980 Page two I would substitute the above language for the second sentence of the existing Paragraph "f" and the remainer of Paragraph "f" would remain the same. Please advise if you have any questions, I would like to get this amendment to the Ordinance passed at the earliest opportu- nity by the City Council if they are in agreement so we are clear as to our position in this particular question. Nancy Roen in our office will -be contacting you further with a draft proposed franchise. WLA/hw cc: Melton Broom Nancy Roen, Esq. Mayor Pat Flood Sincerely, Wayne L. Allen�- Vice President & Assistant General Counsel r General Development Corporation 0 September 26, 1980 Daniel Kilbride, Esq. Sebastian Attorney 2065 15th Avenue Sebastian, FL 32958 Re: Sebastian Water & Sewer Franchise Dear Dan: Nancy H. Roen Corporate Counse The following is the language we would recommend for consideration by the City in amending Section 27-25 on Page 6 of the new proposed franchise ordinance after "shall be without encumberance ...": "At this time the franchise holder shall convey unencumbered all of its facilities together with all easements, to the City of Sebastian, without charge as to all property contributed to the utility, provided further, however, that the City shall have the right to purchase the remaining assets of the utility based on the average of the net original cost and a price as computed and agreed upon by three competent and qualified appraisers. The City shall select an appraiser, the Utility shall select an appraiser, and these two appraisers shall mutually agree upon and select a third independent appraiser and these three appraisers shall arrive at the value of the utility and the sales price involved. However, the City shall not be required to purchase and no value will be placed on additions or extensions to the system which were paid for as contributions -in -aid -of - construction by any person, firm or corporation other than the Utility. At the end of the franchise period, the City shall not be required to pay to the Utility any amount for goodwill and the appraised value shall be based entirely upon physical assets only, and provided further that in the event said Board of Appraisers cannot agree as to the price to be paid by the City, then the City may file appropriate condemnation proceedings under Florida law. Any franchise granted by the City shall include the above requirement." 1111 South Bayshore Drive, Miami, Florida 33131 Telephone 305 350 1586 A Daniel Kilbride, Esq. September 26, 1980 Page two Based upon discussions with the Council on Wednesday, September 17, 1980, we believe this will address the mutual concerns expressed. Please advise if you have any questions, we would like to get this amendment to the Ordinance passed at the earliest opportunity by the City Council if they are in agreement so we are clear as to our position in this particular question. We would also request that our specific franchise be considered for first reading on October 22, 1980. If you are in accord with this language, we will incorporate it is our draft and forward it for your consideration. NHR/lm cc: Melton Broom Wayne L. Allen, Esq. Mayor Pat Flood Gerard P. Mozian Charles Fancher Sincerely, j Gt Nancy H. Roen Corporate Counsel