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HomeMy WebLinkAbout1992 - CorrespCity of Sebastian POST OFFICE BOX 780127 o SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 o FAX (407) 589.5570 July 7, 1992 VIA FAX Mr. J. Larry Rutherford, President Atlantic Gulf Communities, Inc. 2601 South Bay Shore Drive Miami, Fl 33133 Re: General Development Utilities -Sebastian Dear Mr. Rutherford: The City of Sebastian is considering exercising its option under the terms of two franchises granted to General Development Utilities, Inc. to operate water and wastewater services within portions of the City of Sebastian. It is our desire to acquire the GDU Facilities within the City by negotiating with you and without the extraordinary expense of litigation. In fact, it is likely that the utilities system would be far too expensive if such litigation costs are incurred. We would like to begin the negotiating process. In order to maximize available funds for potential acquisition rather than legal and engineering expenses involved in litigation, the City would appreciate your cooperation in the investigation of the potential transfer of the GDU Sebastian system to the City of Sebastian. In order to accomplish this, full and complete access to all records, facilities, operational staff, billing information, etc. is necessary. We believe that it would be in the best interests of both GDU and the City to effect a sale of the system through negotiations rather than the City exercising its option under the terms of the franchises. Are you willing to begin the negotiating process? If so, will you extend your complete cooperation with the City to minimize the cost associated with the acquisition? I will be calling you within the next few days to request an appointment. of course, we would be happy to meet with you in your Miami office. While I do not believe it would be necessary to be represented by legal counsel at the initial meeting, I will request that our engineer attend this session with me so that he may begin the data collection activity. Thank you in advance for your cooperation. incerely, oil— Rober S. McClary ,(- City Manager C/ RSM/sg rmo City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 June 17, 1992 Tom Collins Capt. Hiram's River Raw Bar Indian River Drive Sebastian, FL 32958 Re: Purchase of 3 ERUs of Permanent Capacity Dear Mr. Collins: The impact fees for Sewer per ERU totals $2,321.00 per ERU. Your request of 3 ERUs will total $6,963.00 and will be listed to you upon payment of this fee in total to the City of Sebastian. I appreciate your patience during this initial change -over period and please feel free to contact me if I may be of assistance to you. Sincerely, Michael L. Hudkins, CPA Finance Director cc: Robert S. McClary, City Manager d Kathryn M. O'Halloran, City Clerk Telephone: (407) 567-8000 irdrive.jui July 6, 1992 BOAFO'W COUNTY COMMISSION^ S 1840 25th Street, Vero Beach, Florida 32960 Mr. Dan Eckis Community Development Director City of Sebastian P.O. Box 780127 Sebastian, F1. 32978-0127 Subject: Indian River Drive in Sebastian Dear Dan: �--- RECEIVED` At 131992 CRY CLER19 . OFFICE s Suncom Telephone: 224-1011 In reference to my January 2 letter discussing the transfer of Indian River Drive from Indian River County to the City of Sebastian. I was curious of the status of your investigation. The County Utilities Services Department wants to be included in the process since they have utilities installed along this road. Please contact this office if you have any questions. Sincerely, � f JamEW W. Davis, P.E., Public Works Director JWD:rt BOARD OF COUNTY COMMISSIONERS 1840 25th Street, Vero Beach, Florida 32960 Telephone: (407) 567-8000 July 22, 1992 Robb McClary, City Manager City of Sebastian P.O. Box 780127 Sebastian, Florida 32978 SUBJECT: MONTHLY BILLING FOR WASTEWATER SERVICE MAY 1, 1993 THROUGH JUNE 1, 1993 Dear Mr. McClary: 0113 This is to advise of the City's delinquent balance for service from May 1, 1993 through June 1, 1993. As of this date the County has not received payment for this invoice. The County acknowledges your problems with your first billing in June 1993, but it was only after repeated requests for the City's billing information that we received the billing data the last week of June, 1993, which is the reason for the billing date of July 2, 1993. The County's Ordinance No. 91-9, Section 201.17, states that "Bills for monthly charges and fees should be submitted and shall be payable on the 20th day from the date of the bill. If any monthly bill remains unpaid on the 21st day of the month for such service, a penalty shall be imposed and added to the bill." Section 201.08, J(4), states "County shall charge an additional $1.50 plus one and one-half percent (1-1/2%) interest monthly on all outstanding balances including assessments, fees, charges, and other fees due if payment is not made in total by each payment deadline date." This is to request your assistance in expediting payment of this invoice and the penalty and interest charges will be added to your next billing. Please call if I can be of assistance. Si ere Harry E. her Ass t Director of Utility Services HEA:sb cc: James E. Chandler (MCCLARY.HEA)sb ,m y a w ,� This is to advise of the City's delinquent balance for service from May 1, 1993 through June 1, 1993. As of this date the County has not received payment for this invoice. The County acknowledges your problems with your first billing in June 1993, but it was only after repeated requests for the City's billing information that we received the billing data the last week of June, 1993, which is the reason for the billing date of July 2, 1993. The County's Ordinance No. 91-9, Section 201.17, states that "Bills for monthly charges and fees should be submitted and shall be payable on the 20th day from the date of the bill. If any monthly bill remains unpaid on the 21st day of the month for such service, a penalty shall be imposed and added to the bill." Section 201.08, J(4), states "County shall charge an additional $1.50 plus one and one-half percent (1-1/2%) interest monthly on all outstanding balances including assessments, fees, charges, and other fees due if payment is not made in total by each payment deadline date." This is to request your assistance in expediting payment of this invoice and the penalty and interest charges will be added to your next billing. Please call if I can be of assistance. Si ere Harry E. her Ass t Director of Utility Services HEA:sb cc: James E. Chandler (MCCLARY.HEA)sb General Development Utilities, Inc. AUM/ A General Development Corpora lion Subsidiary PORT MALABAR. SEBASTIAN HIGHLANDS, SILVER SPRINGS SHORES, JULINGTON CREEK DIVISIONS (407) 723-2077 5240 BABCOCK STREET N.E., PALM BAY. FLORIDA 32905 August 5, 1992 Mr. Robert McClary, City Manager City of Sebastian P.O. Box 780127 Sebastian, Florida 32978-0127 Re: Utility Easements Dear Mr. McClary: On May 21, 1992 we forwarded three easement documents to you for signature but have had no reply to date. The requested easements are for three of our sanitary sewer lift stations that are located on land which was recently conveyed to the City of Sebastian by General Development Corporation. We again ask that you execute the documents and return them to us at your earliest convenience. We will have the documents recorded and provide you with copies for your records. Should you have any questions or comments concerning this matter, please do not hesitate to call me. Sincerely, red ch�a n Operations Manager FS/fa pc: File OW N E R S H I P E N C U M B R A N C E CERT 1 F 1 CAT E Issued by A T L A N T I C C O A S T A L T I T L E CO R P O R A T I O N 936 47th Avenue, Vero Beach, Florida 32966 Telephone - (407) 569-4364 Re: City of Sebastian, a Florida corporation ACTC File: 29923801 This is to certify that a careful and diligent search of the Public Record as to the land hereinafter identified, to wit: Tract K, SEBASTIAN HIGHLANDS, UNIT 17, according to the Plat thereof, as recorded in Plat Book 8, at Page 46, of the Public Records of Indian River County, Florida. was conducted beginning March 30, 1992 at 8:00 AM and continuing through 5:00 PM on the certification date given below; and it was found that title to the land hereinabove described was apparently vested in "City of Sebastian. a Florida corporation" by virtue of that certain instrument recorded in O. R. Book 928, at Page 2018; and it appears by virtue of a reference in that instrument (or by instrument recorded subsequent thereto) that subject land was encumbered by: Nothing Apparent! No other matters were discovered during the period searched that appear to remain as an encum- brance upon the land. Real property taxes for the year 1991 were found to be Paid in the gross amount of $0.00. No search for special assessments was made. This certificate does not obligate the Company to insure title to the land described herein, nor does it intend to make any representation as to the insurability or marketability thereof or to the legal sufficiency of any instrument referred to herein. The Company's liability hereunder is limited solely to the amount actually paid for this certificate, and is void except as to the entity to whom originally issued. Certified to General Development Utilities, Ia-.. as�f-,May 8, 1992. Leonard L.Sp ler, Jr. President d:\binder\rl0v.doc (d:\binder\v3.doc) [Issued May 13, 1992 - Page 1] OW N E R S H I P 8c E N C U M B R A N C E CERT I F I C A T E Issued by A T L A N T I C C O A S -F,&. L T I T L E C O R P O R A T I O N 936 47th Avenue, Vero Beach, Florida 32966 Telephone - (407) 569-4364 Re: City of Sebastian, a Florida Municipal Corporation ACTC File: 29923799 This is to certify that a careful and diligent search of the Public Record as to the land hereinafter identified, to wit: Tract P, SEBASTIAN HIGHLANDS, UNIT 16, according to the Plat thereof, as recorded in Plat Book 8, at Page 45, of the Public Records of Indian River County, Florida. was conducted beginning at 8:00 AM and continuing through 5:00 PM on the certification date given below; and it was found that title to the land hereinabove described was apparently vested in "City of Sebastian. a Florida Municipal Corporation" by virtue of that certain instrument recorded in 0. R. Book 928, at Page 2018; and it appears by virtue of a reference in that instrument (or by instrument recorded subsequent thereto) that subject land was encumbered by: Nothing Apparent! No other matters were discovered during the period searched that appear to remain as an encum- brance upon the land. Real property taxes for the year 1991 were found to be Paid in the gross amount of $0.00. No search for special assessments was made. This certificate does not obligate the Company to insure title_ to the land described herein, nor does it intend to make any representation as to the insurability or marketability thereof or to the legal sufficiency of any instrument referred to herein. The Company's liability hereunder is limited solely to the amount actually paid for this certificate, and is void except as to the entity to whom originally issued. Certified to General Development Utilitie , nc. as of)May 8, 1992. Leonard Spangler, Jr. Presid�t d:\binder\rl0v.doc (d:\binder\v3.doc) [Issued May 13, 1992 - Page 1] O W N E R S H I P & E N C U M B R,^. N C E CERT 1 F= 1 CATS Issued by A T L A N T I C COASTAL_ T I T L - E C O R P O R A T I O N 936 47th Avenue, Vero Beach, Florida 32966 Telephone - (407) 569-4364 Re: City of Sebastian, a Florida Municipal Corporation ACTC File: 29923798 This is to certify that a careful and diligent search of the Public Record as to the land hereinafter identified, to wit: Tract R, SEBASTIAN HIGHLANDS, UNIT 17, according to the Plat thereof, as recorded in Plat Book 8, at Page 46, of the Public Records of Indian River County, Florida. was conducted beginning March 30, 1992 at 8:00 AM and continuing through 5:00 PM on the certification date given below; and it was found that title to the land hereinabove described was apparently vested in "City of Sebastian, a Florida Municipal Corporation" by virtue of that certain instrument recorded in O. R. Book 928, at Page 2018; and it appears by virtue of a reference in that instrument (or by instrument recorded subsequent thereto) that subject land was encumbered by: Nothing Apparent! No other matters were discovered during the period searched that appear to remain as an encum- brance upon the land. - Real property taxes for the year 1991 were found to be Paid in the gross amount of $0.00. No search for special assessments was made. This certificate does not obligate the Company to insure title to the land described herein, nor does it intend to make any representation as to the insurability or marketability thereof or to the legal sufficiency of any instrument referred to herein. The Company's liability hereunder is limited solely to the amount actually paid for this certificate, and is void except as to the entity to whom originally issued. Certified to General Development Utilities, I� 8, 1992. Leonard L.;ARangler, Jr. President/\ d:\binder\rl0v.doc (d:\binder\v3.doc) [Issued May 13, 1992 - Page 1] of �• �,y.c-- 19 .So This instrument prepared oy and return to: Gary B. Press, Esquire, FRES$, FALL&Cv RASH L TORPY, P.A. RECORD EMRED 930 S. Harbor City Blvd., #505 BARTONJERK K B•.CTO Melbourne, FL 32901 CLERK CIRCUIT COURT CI WARRANrz M=XAL DEED INDIAN RIVER Co. FLA THIS USED is sada as of the day of March, 1992, between GENERAL DEVELOPMENT CORPORATION, a Delaware corporation, as debtor- J in -possession under U.S. Bankruptcy Court Case No. 90 -12231 -BAC- W ATC, whose addreas is 2601 South Bayshore Drive, Miami, Florida 33131 ("Gra_ntor"), and CITY OF SEBASTIAN, a auniclpal corporation F organized under the law of the State of Florida, whose address is 1225 Main Street, Sebastian, Florida 32958 (•Grantee•). J W I T N E S s E T Es Grantor, for and in consideration of the sum of Ten Dollars c, ($10.00) and ocher valuable consideration paid by Grantee, the receipt and sufficiency of which is hereby acknowledged, has �-_ granted, bargained and sold, and by these presents does grant, bargain and sell, to Grantee, and Grantee's successors and assigns N forever, the following property located in Indian River County, s Florida (the "Property"), to wit: a Seo Exhibit "A" � attached hereto and by this reference made a part hereof SUBJECT TOs r. 1. Ad valor" real estate taxes for 1992 and subsequent N years. 2. All laws, ordinances, regulations, restrictions, prohibitions and other requirements imposed by governmental authority, including, but not limited tc all applicable building, zoning, land use and environmental ordinances and regulations. 3. Easements, conditions, restrictions, matters, limitaticna end reservations of record, without hereby reimposing the sass. 4. Matters which would be disclosed by an accurate survey of the Property. TO HAVE AND TO HOLD unto Grantee and Grantee's successors and assigns in fas ample forever. F grantor hereby specially warrants the title to the Property, subject to the foregoing matters, and will defend the same against the lawful claims of all persona claiming by, through or under Grantor, but against no others. IX WITNESS WHEREOF, Grantor has executed this Deed on the day and year first above written. Signed, sealed and delivered GENERAL DEVELOPMENT CORPORATION, in the presence of: a Delaware corporation, as debtor-in-possession under Bankruptcy Court Case No. N ,}o- Acdt4FrcNS /CD e901-12231-BKC-anted sident Me 'C7 Drive pME':iARY STAMPS / •40 o JEEiREY k MRTC . CLL% WORAN R NER COUNTY. Co �y PARCEL 12: Lots 1 to 11, inclusive, Block 449; Lots 1, 2, 3 and 4, Block 451; Lots 11 and 12, Block 462; Lots 4, 6, 7, 8, 11, 12, 13, 14, 15, 16, 17 and 18, Block 570; Lots 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 19 and 20, Block 578; Lots 12, 13, 14, 19, 20 and 21, Block 579; Lots 1, 2, and 3, Block 580; and Lots 4 and 5, Block 589; SEBASTIAN HIGHLANDS, UGIT 17, according to the plat thereof as recorder in Plat Book 8, Page 46, of the Public Records of Indian River County, Florida. ' PA=.CEL _ . Tract A, Block 441; Tract 8, adjacent to Block 445; F� Tracts H and I, Block 574; Tract K, adjacent to Block 588; Tract M, adjacent to Block 599; Tract O, adjacent to Block 593; The Westerly 115 feet of Tract P, adjacent to Block 602; Tract Q, E adjacent to Block 6041 Tract R, adjacent to Block 613; Tract S, s adjacent to Block 616; Tract T, Block 606; Tract U, Block 598; 0 C:) lD N C^i N C) N C7 Me • • EXHIBIT "1e 1s' PARCEL 1: Lot 2, Block 12 and Tract c, adjacent to Block 41; Tract D, adjacent to Block 21; Tract E, adjacent to Block 17; Tract F, adjacent to Block 14; Tracts H and I, adjacent to Block 12, SE3ASTIAN HIGHLANDS, according to the plat thereof as recorded in Plat Book 5, Pages 14 and 15, or the Public Records of Indian River County, Florida. PARCEL 2: Tract O, adjacent to Block 65, SEBASTIAN HIGHLANDS, UNIT 2, according to the plat thereof as recorded in Plat Book 5, Page f{: 34, of the Public Records of Indian River County, Florida. } PARCEL 3: Tract Y, adjacent to Bock 121, SEBASTIAN HIGHLANDS, UNIT 4, according to the plat thereof as recorded in Plat Book 5, Page 100, of the Public Records of Indian River County, Florida. j PARCEL 4: All of Block 193 and Tract C, Block 223, SEBASTIAN f ' HIGHLANDS, UNIT 8, according to the plat thereof as recorded in -"- Plat Bock 6, Page 9, of the Public Records of Indian River County, Florida. PARCEL 5: All of Blocks 268 and 300 and Tract A, Block 211; Tract B, Block 267 and Tract C, Block 264, SEBASTIAN HIGHLANDS, UNIT 10, " according to the plat thereof as recorded in Plat Book 6, Page 37, of the Public Records of Indian River County, Florida. L PARCEL 6: Lot 19, Block 364; Lot 12, Block 365; Tracts A and B, adjacent to Block 282; Tract C, adjacent to Block 372; Tract D, and Tract E, Block 347. SEBASTI,N HIGHLANDS, UNIT 11, according to the plat thereof as recorded in Plat Book 7, Page 56, of the Public s Records of Indian River County, Florida. PARCEL 7: Tracts A and Tract D, SEBASTIAN HIGHLANDS, UNIT 13, t according to the plat thereof as recorded in Plat Book 7, Page 82, of the Public Records of Indian River County, Florida. W' PARCEL 8: Tract D, Block 333, SEBASTIAN HIGHLANDS, UNIT 13, according to the plat thereof as recorded in Plat Book 7, Page 82, - of the Public Records of Indian River County, Florida; LESS AND EXCEPT those portions conveyed in Official Record Book 524, Page 4161 Official Record Book 530, Page 465 and Official Record Book 539, Page 525, Public Records of Indian River County, Florida. PARCEL 9: Tract B, adjacent to Block 507, SEBASTIAN HIGHLANDS, UNIT 14, according to the plat thereof as recorded in Plat Book 8, Page 43, of the Public Records of Indian River County, Florida. PARCEL 10: Tract G, adjacent to Block 488, SEBASTIAN HIGHLANDS, UNIT 15, according to the plat thereof as recorded in Plat Book 8, .4. Page 44, of the Public Records of Indian River County, Florida. PARCEL 11: Tract P, adjacent to Block 560; Tracts :', S and T, !i adjacent to Block 559, SEBASTIAN HIGHLANDS, UNIT 16, according to the plat thereof as recorded in Plat Book 8, Page 45, of the Public Records of Indian River County, Florida. PARCEL 12: Lots 1 to 11, inclusive, Block 449; Lots 1, 2, 3 and 4, Block 451; Lots 11 and 12, Block 462; Lots 4, 6, 7, 8, 11, 12, 13, 14, 15, 16, 17 and 18, Block 570; Lots 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 19 and 20, Block 578; Lots 12, 13, 14, 19, 20 and 21, Block 579; Lots 1, 2, and 3, Block 580; and Lots 4 and 5, Block 589; SEBASTIAN HIGHLANDS, UGIT 17, according to the plat thereof as recorder in Plat Book 8, Page 46, of the Public Records of Indian River County, Florida. ' PA=.CEL _ . Tract A, Block 441; Tract 8, adjacent to Block 445; F� Tracts H and I, Block 574; Tract K, adjacent to Block 588; Tract M, adjacent to Block 599; Tract O, adjacent to Block 593; The Westerly 115 feet of Tract P, adjacent to Block 602; Tract Q, E adjacent to Block 6041 Tract R, adjacent to Block 613; Tract S, s adjacent to Block 616; Tract T, Block 606; Tract U, Block 598; 0 C:) lD N C^i N C) N C7 Me • • Tract V. Block 599: Tract W, Block 595; Tra.:t k, Block 462 and Tract Y, Block 580, SEBASTIAN HIGHLANDS, UNIT 17, according to the plat thereof as recorded ii Plat Book e, Page 46, of the Public Records of Indian River County, Florida. PAI, -RT 14: A portion of Section 18, Township 31 South, Range 19 East, lying in Indian River County, being bounded as follows: On the Nest and North by the southerly and a portion of the easterly lines of the lands described in a warranty Deed recorded in Official Records Book 818, at Pagc. 341 of the Public Records of Indian River County, Florida, and also On he Suuth and West by the easterly boundary 1:ne of the Plat Of SEBASTIAN HIGHLANDS, UNIT - 16, as recorded in Plat Book 8, Page 45, Public Records of Indian River County, Florida; On the East by the westerly '-. -.--• line of the plat of REPLAT OF PORTIONS OF SEBASTIAN HIGHLANDS -UNIT 9, am recorded in Plat Book 7, at Page 2 of the Public Records of Indian River County, Florida, and the westerly line (labeled westerly face of existing bulkhead) of Exhibit wBw of a Quit Claim Deed as recorded in Official Record Book 346, at Page 499 of the Tublic Records of Indian River County, Florida, and the westerly limit of BAILEY DRIVE as shown on the plat of SEBASTIAN HIGHLANDS - UNIT 9, as recorded in Plat Book 6, at Page 36, of the Public Records of Indian River County, Florida and a portion of the easterly line of said Official Records Book 818, at Page 341, all as recorded in the Public Records of Indian River County, Florida. PARCEL 15: Lake Hardee, as shown on the Plats of SEBASTIAN HIGHLANDS -UNIT 2 as recorded in Plat Book 5, Page 34, and SEBASTIAN HIGHLANDS -UNIT 4, as ranorded in ?let Book 5, Page 100, both of the Public Records of Indian River County, Florida, being further described as follows: Those portions of Sections 11 and 12, Township 31 South, Range 38 East, bounded on the southerly side by LAKE DRIVE; on the Easterly side by the westerly line of Lots 1 to 9, inclusive, of said UNIT 2 and Lots 10, 11 and 12 of said UNIT 4, both of Block 73 as shown on both said plate; cn the westerly side by-HARDEE PARK- conveyed in Official Records Book 724, Page 1020, of the Public Records of Indian River County, Florida; and on the northerly side by the northeasterly and southeasterly block line of Block 120 (tieing the northeasterly and southeastly lot lines of Lots 1, 2 and 3, of said Block 120) of said UNIT 4 and the southeasterly Right of Way line Of that pertain Drainage Right of Way lying Northwesterly of said Blocks 73 and 120, both of said UNIT 4. All lying and being in the City of Sebastian, Indian River County, Florida. HARTMAN & ASSOCIATES, INC. engineers, hydrogeologists, surveyors & management consultants /2At19ltst 14,.L1992 HAI #92-023.00 QJ�4l a J 'Eby Mr. Charles E. Fancher, Jr. President General Development Utilities, Inc. 2601 South Bayshore Drive Miami, Florida 33133-5461 Subject: General Development Utilities, Inc. - Sebastian Highlands Dear Mr. Fancher: Thank you for scheduling a meeting with representatives of the City of Sebastian, their engineers, representatives of General Development Utilities, Inc. (GDU), and Atlantic Gulf Communities regarding the Sebastian Highlands water and wastewater facilities. As part of evaluating a utility, a number of items must be taken into account; particularly, the ten (10) requirements provided in the Florida Statute 180.301. In addition, the City and their engineers must be able to inspect the water and wastewater facilities owned and operated by GDU and within the City of Sebastian. I have attached for your use a preliminary data request which we will need to obtain from GDU to evaluate the GDU-Sebastian Highlands facilities. I understand that this data request is quite lengthy, and in fact, some of the requested information may not exist. However, we feel that this is a good starting point of which we can discuss on Tuesday, August 18, 1992. With respect to any future utility inspections, I believe that we can conduct these inspections in a similar manner to our previously conducted inspections of your facilities. At which time when we have scheduled our facility inspections, I will be more than happy to provide GDU with a schedule for our inspections, as well as a list of all attendees. 201 EAST PINE STREET • SUITE 1000 • ORLANDO, FL 32801 TELEPHONE (407) 839.3955 • FAX (407) 839-3790 PRINCIPALS: JAMES E. CHRISTOPHER • CHARLES W. DRAKE • GERALD C. HARTMAN • MARK L LUKE • MARK A. RYNNING • HAROLD E. SCHMIDT. JR. Mr. Charles E. Fancher, Jr. August 14, 1992 Page Two We look forward to meeting with you and others on Tuesday, August 18, 1992, regarding the above referenced water and wastewater facilities. Should you have any questions in the meantime, please do not hesitate to call me. Very truly yours, Hartman /& Associates, Inc. Harold E. Schmidt, Jr., P.E. Vice President HES/ch C14/Fancher.hes Attachment cc: Rob McClary, City of Sebastian w/attachment Gerry Hartman, HAI w/attachment SEBASTIAN DATA REQUEST A. UTILITY OPERATIONS 1. FDER monthly operating reports 1988 to July, 1992. 2. Daily operating reports kept at the WTP and WWTP showing pump run times, chemical usage, and other information regarding these facilities for the years 1988 through July 1992. 3. All documents showing the following information concerning the raw water to the WTP including: a. chemical analysis; b. historic groundwater levels; and C. raw water pumping daily flow charts since 1988 through present date. (Actual charts required will be identified after review of FDER MOR's). 4. All documents incorporating and/or showing all sludge hauling records from 1988 to present date. This information should include at a minimum the following information: a. sludge disposal site; b. sludge quantity hauled per event; C. sludge characteristics; and d. contract hauler name, address, telephone number, etc. 5. All pump station run times disaggregated by pump station on a daily basis for the years 1988 through July 1992. 6. A breakdown of and/or all documents showing all water mains, gravity sewers, and forcemains by type of pipe (i.e. asbestos cement (AC), polyvinyl chloride (PVC), etc.) including: a. diameter (inches); b. length (feet). GJR/jb/M-1/Sab.gjr HAI//90-023.00 1 7. A breakdown of and/or all documents showing all equipment installed at the WTP and WWTP, including: a. equipment; b. manufacturer; C. model number; d. serial number; and e. miscellaneous (i.e., electrical requirements, horsepower capacities, etc.). 8. One (1) set of mylar drawings and specifications indicating as -built conditions of the following: a. overall water transmission and distribution system (scale: 1" = 600' or as appropriate); b. overall wastewater collection and transmission system, including pump stations (scale: 1" = 600' or as appropriate); C. water treatment plant expansions from inception to present date; and d. wastewater treatment plant expansions from inception to present date; e. raw water supply wells. 9. All deeds and any other documents providing legal descriptions for the WWTP, WTP, ground storage facilities, raw water supply wells, wastewater lift stations, all piping not placed in the public rights-of-way and all easements or record whether they are held in the name of General Development Utilities, Inc. (GDU) or Altantic Gulf Communities, formerly General Development Corporation (GDC) which pertain to GDU water and wastewater operations. 10. All documents showing individual and composite pump curves for the high service pumps located at the WTP and the raw water supply wells. 11. All engineering reports prepared for the Sebastian water and wastewater facilities since 1980. GJR/jb/M-1/Sab.gjr HAI//90-023.00 2 12. All documents showing fire hydrant tests data since 1988 and any information regarding infiltration/inflow studies. 13. Opportunity to review the WTP and WWTP operator's log book for the years 1985 through present date. 14. Opportunity to review equipment/pipeline maintenance data. B. FINANCIAL 1. All financial audits performed for the GDU Sebastian Highlands division for the period 1989 through 1991. 2. A current list of all documents showing water and sewer customers presently connected service. This information should at minimum include: a. name; b. location; C. type (i.e., residential, commercial, etc.); and d. meter size. 3. A list of and/or all documents showing all paid and committed water and sewer equivalent units which have not been connected to the systems. The information should be disaggregated between areas which have service (water and sewer) currently available and areas that service is not available should at minimum include: a. name; b. location; C. type (i.e., residential, commercial, etc.); and d. meter size. 4. Developer agreements (actual and pending) which would require capacity utilization, commitment or service. 5. A listing of all documents showing all customer deposits on record including: GJR/jb/M-1/Sab.gjr HAI#90-023.00 3 a. account number; b. name and address of customer; C. date of deposit receipt by Company; and d. amount of deposit. 6. A complete balance sheet for the GDU Sebastian Highlands Division only and all footnotes of disclosure items and allocations to the division if such assets/liabilities are on a total company basis of 1989, 1990, 1991 and any tentative or draft balance sheets for 1992. 7. A breakdown of or all documents showing property taxes paid by parcel for GDU for 1990 and 1991. 8. The 1989, 1990 and 1991 Operating and Capital Budget for the Sebastian Division. This data should include all projections beyond the 1991 time frame (e.g., Five Year Capital Budget, preliminary 1992 budgetary data, etc.). 9. A detailed breakdown of and/or all documents showing purchased power expense for the water and sewer system by type of facility (treatment plant, lift stations, etc.). 10. Provide a detailed monthly breakdown of and/or all documents showing the source of other water and sewer revenues for 1988 through May, 1992 (i.e., not sales revenue). 11. For the years 1989 to present date provide the following information or all documents showing the following by month and by water meter size: a. number of bills rendered (water); b. amount of gallons sold (water); C. amount of gallons produced; d. number of bills rendered (sewer); and e. amount of revenue gallons billed (sewer). 12. All supply and maintenance contracts for the water and wastewater facilities, and information including: GJR/jb/M-1/Sab.gjr HAI//90-023.00 4 a. name of contractor, vendor, etc.; b. address; C. telephone number; and d. type of service provided. 13. All annual operating reports filed from 1987 to present date detailing financial operating results and statistic data for the Sebastian water and wastewater facilities to include, but not limited to: a. individual utility reports; b. expense by individual Chart of Accounts; C. depreciation expenses by specific plant accounts; d. operating revenues by specific revenue type; e. customers by meter size; and f. production, treatment and sales data. 14. A detailed listing of and/or all documents showing all construction work in progress balances including, by job number or contract number: a. description of activity and purpose of addition; b. total estimated project cost; C. amount of expenditures spend to date (specify); d. expected completion date; e. asset life and salvage value of addition; and f. asset retirement anticipated once addition is on line including historical plant costs and accumulated depreciation reserve at time of asset addition for each retirement. GJR/jb/M-I/Sab.gjr HAI#90-023.00 5 15. All least agreements involving tangible or intangible personal property associated with the GDU Sebastian Highlands Division. 16. All Certificates of Insurance for the GDU Sebastian Highlands Division. 17. A detailed organizational chart and/or all documents showing all employees (unnamed) by job classification. This information should include at minimum: a. current salary range per job classification; and b. description of activities performed. 18. A detailed listing of and/or all documents showing all plants in service (Fixed Utility Assets) and all contributed plant in service and/or contributions -in -aid - of -construction (CIRC). a. a description of property (location, type of asset, linear feet pipe, etc.); b. in service date; C. work orders and work releases; d. bid tabulations; e. historical cost booked to gross plant in service; f. accumulated reserve for depreciation on such plant balances; g. estimated salvage value; and IT. average service life for depreciation accrued and estimated remaining useful life of asset. 19. All documents that provide a description of and the methodology used to allocate all common operating expenses and general plant to water and sewer accounts. 20. All land sale contracts entered into by Atlantic Gulf Communities (formerly GDC) or GDU for providing water and sewer utility service to customers. 21. All data, correspondence, memoranda and other documents relative to any water or wastewater rate increases pending or contemplated, as well as all documents GJR/jb/M-1/Sab.gjr HAIN90-023.00 6 showing 1987 to present date any proposed rate base for the GDU Sebastian Highlands Division. 22. Any accounting of and/or documents showing Capital Charges for Utility Capacity which have been escrowed or deposited for future service which may be associated with land sales agreements or deferred utility service agreements. 23. A complete inventory of and/or all documents showing all customer connections, future customer commitments who have paid capital charges, and future customer commitments who have partially paid capital charges and finally future customer commitments who have paid capital charges. 24. The most recent income and expense statement for the GDU Sebastian Highlands Division. 25. A detailed listing of and/or all documents showing management expenses including the purpose, amount, and any other applicable information for 1988 to present date. This information should be on an individual basis based on expense need. GJR/jb/M-1/Sab.gjr HAI/t90-023.00 7 HARTAAAN & ASSOCIATES, Ii. C. engineers, hydrogeologists, surveyors & management consultants MEMORANDUM A,2526 262j 92-023.00 TO: File N V w pU61992 FROM: Gerry Hartman 00 Received w City Office err A DATE: August 19, 1992 `s���£lzcttot6g�e' SUBJECT: GDU Negotiations Meeting On August 18, 1992, Larry Rutherford, Charlie Fancher, Hal Schmidt, Rob McClary and the Writer met regarding the City of Sebastian water and sewer facilities. The following was agreed to among the parties: 1. Relative to the meeting, we would tell the press that the parties are negotiating. 2. GDU is not exclusively negotiating with the City of Sebastian; rather, they are determining an alternate strategy for the sale of their utility systems as one large combined unit for the remaining five (5) systems. During the meeting, Mr. Rutherford stated that he is willing to, of course, sell the system to the City of Sebastian if the terms and conditions can be negotiated in a reasonable manner. The parties stated their two (2) methods of negotiations. One would be a contract predicated on the performance of getting a Farmers Home Administration grant loan for funding the improvements and the acquisition. The second option is to do a cash down with a futures deal based upon the revenues of the system and bondability of the same. In either case, it appears that GDU will be applying to the City of Sebastian for a rate adjustment for their utility system. Mr. Rutherford requested that Rob McClary present to the City Council GDU's request to have the rate hearing in front of a hearing officer, and then bring that hearing officer's recommended order to the City Council. Within three (3) weeks, we will notify Mr. Rutherford of the decision of the City Council relative to this issue. Mr. Rutherford directed Charlie Fancher to provide the data and information to Hal Schmidt, within a two-week period and later on, he asked him to do it within a one-week period. The Writer is to prepare typical purchase and sale agreements for the negotiated sale of the Sebastian system. They are to reflect Option A, as well as Option B. This is scheduled to be completed within two (2) to three (3) weeks. After approximately three (3) weeks, plus or minus, a second meeting will be scheduled for the parties to negotiate the purchase price and go over the technical information for one-half day, and then meet in the afternoon, following up that technical session with a negotiations session. 301 EAST PINI: YMEET • SUITE 1000 • ORLANDO. 171. 33801 TEL17PHo NI: (4O—) 8193955 • FAX (407) H39-3'90 PRINCIPAIS:IAMES V. CHRISI'ON(Fit -CI [ARLES RMAKE • GERALD C. I]AR'I iMAN • MARK I. 1.1 KE • MARK A RYNNING • IIAROLD 1. SCI DI I DT. IR. MEMORANDUM (Continue August 19, 1992 Page Two The above is a summary of the negotiation session conducted at GDU's offices on August 18, 1992. End of memorandum. GCH/ch C14/Sebast.mem cc: Hal Schmidt, HAI -Robb McClary, City of Sebastian 1 Tom Cloud, GHRI SEP -02-1992 09:36 FROM GRAYIHARRIS&ROBINSON J-CMAOLC3 ORAT "ROOM N. HAQPIS RICHARD M. MOS, M SON P.ILLIP P. e1NCH PAMELA O. POICC JAM E9 I. PAGE. JR. WILLIgn A. SOYLCS THOMAS A. CLOUD $TRO V. MAg3MALL.JR. J. MA50N WILLIAM$.$ LEO P. ROCK. JR. C. ROBENT30M OILC CMARLES W. SELL JACK A. KIRSCHEMSAVM JAMC3 W. PCCPLCS.= r*Aq CST S. rICLOS.JR. TO 914075895570 P.01 GRAS:. HAmus & AoBzxsor PROVESSIONAL ASSOCIATION ATTORNEYS AT LAW SVITE 200 201 EAST PINE STREET COST OrIICC sex 3OBB 02LA.ND0. FL 32602-3068 TELEPHONE I4091 043.6880 V.. .4011 2AA.54590 GLASS BAM4 SVILDIMO SOB NORTH VALAMOO AVENUE POST OrPICC 90A 320737 COCOA Br.&os.FL 32.932-0767' TCLCIMONE IAOYI 183.2215 IAA NOT) 183-2299 WRITER'S OIRCCT DIAL PLEASE RCeLY TO: D to FAX COVER SHEET •MOMAS C. SMAW VA IL J. MORRIS ALAN R. SVTTCOWOPrm PAIL 3. OUINN. JR. DAVID L-9CMICR "C. A. MGMULLSM ONLANOO L. EVORA 3usILN O. TASSOLL SICNARO E. BVRKE LORI R. BENTON ANTHONY J. COTTER TRACT A. SOOGERT 'OHM S. SHOEMAKER LIRA J. IRAN. MICHACL K. WILSON MARK 5, WALKEq LILA I. MCMCN" K CNT L..IIP CAT. CR INE 8. ROORIGUC3 MALCOLM R. KIRSCMCNBAV^ GUY S..ACOARO or cDl.ecl -7'.•T• o• wr. -•••• -w cP.weeY:x. •.•s c.. TO:��iLch FAX44 7 51c� - 9h 0 FROM: 7 /� u�� C/M NUMBER OF PAGES ._ (inciudinq cover sheet) Please Note our new FAX # 407-244-5690 RE: _.` any problems are. encountered With this transmittal contact: at x 3,4 — SEP -02-1992 09:37 FROM GRRY.HRRRISBROBINSON J. CMARLC3 ORAY GORDON N. MARAIS RICHARD M. ROBINSON PMILLIP R. FINCH MM ELA O. PRICE JAMES F. HOE. JR. WILLIAM A. VOYLES THOMAS A. CLOUD BIRD P. MARSHALL, JR. J. MASON WILLIAMS, III LEO P. ROCK. JR. O. ROBERTSON GILD CHARLES W. SELL JACK A. KIRSCHCHDAUM JAMES W. PCCPLEA= FORRCST S. FICLOS. JR. TO 914075895570 P.02 GRAY, Hniuus & RowNsON PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW SUITE 1200 201 EAST PINK STREET POST OFFICE BOK 3008 ORLANDO, FL a2802-3068 TELEPMONC (407) e43.6600 FAX 14071 EA4-9090 Robb McClary City Manager City of Sebastian P.O. Box 780127 Sebastian, Florida GLASS BANK BUILDING $OB NORTH ORLANDO AVENUE POST OPPICE BOK 320707 COCOA BR Cn, FL 32939-0757 TELEPHONE (A07) 702-aa18 PAX (407) 76S-2407 WRITERS DIRECT DIAL PLEASE REPLY TO; Orlando September 2, 1992 32978 R8: Changes to Ordinance Dear Robb: THOMAS C. SHAW PAUL J. MOKR19 ALAN R. BUYTERWORTH PAUL S. GUINN, JR. DAVID L.9CHICK JACK K. M.MVLLEN ORLANDO L. EVORA SUSAN D. TP39ELL RICHARD E.SURKC LORI R. BENTON ANTHONY J. COTTER TRACY A. BORGCRT JOHN B.SHOEMAKCR LISA J. FRANK MICHAEL K.WILSON MARK S. WALKER ULA I. MCHEMRY KCMT L. HIPP CATHERINE B. RODRIGUEZ MALCOLM R. IKIRSCMENBAUM GUY S- HAGGARD OF COYHCCL VIA FACSSPlI� 407/589-5570 Attached herewith are the changed pages to insert in the Ordinance. sincerely yours, Thomas A. Cloud, Esqui e GRAY, HARRIS & ROBINSON, P.A. TAC: jlm Attachment AUG -31-1992 15:15 FROM GRAY,HARRISBROBINSON TO 914075895570 P.09 1 2 3 4 5 6 7 8 9 10 it 12 13 14 15 16 17 1B 19 20 21 22 23 29 2c requests for waiver shall be made with the submittal of the initial app icat'on. it This section shall apply to all 1992. SECTION S. SEVERABILITY. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision o application and to this end the provisions of this Ordinance are declared severable. SECTION 9. EFFECTIVE DATE. This Ordinance shall take effect immediately upon passage and adoption, but the requirements set forth in Section 4 through 7 hereof shall be applied to all rate applications received on or after September 6, 1992. The foregoing Ordinance was moved for adoption by Councilman The motion was seconded by Councilman , and, upon being put into a vote, the vote was as follows: Mayor Lonnie R. Powell Vice Mayor Frank Oberbeck CODING: Words underlined are additions; words in g,,,ele type are deletions from existing law. 18 AUG -31-1992 15:12 FROM GRAY,HARRIS&ROBINSON TO 914075895570 P.04 11 21 eye� including without limitation t e it of 3 Sebastian. 4 SECTION 4. That the Code of Ordinances, City of 5lSebastian, Florida, is hereby amended by adding a section 6 to be numbered Section 27-7, which said section shall read 7 as follows: 8 Sec. 27-7. Applicability 19 Availability policy or charges 20 SECTION 5. That the Code of Ordinances, City of 21 Sebastian, Florida, is hereby amended by adding a section 22 to be numbered Section 27-8, which said section shall real 23 as follows: 24 25 CODING: Words un lined we additions; words in skPud"hr� type are deletions from existing law. 8 9 Lal All utilities within the iurisdiction of the_ 10 City of Sebastian must develop a service 11 availability policy. 12 u The provisions of Sections 27-7 through ;?_7-9 13 shall apply to any utility that on or after 14 September 6 1992 (1) files or applies for a 15 change to any of its rates or charges or 121 when the Council of the City of Sebastian 16 17 Florida. initiates a show cause proceeding to rnmliro the nt;l;+.. +- ..A--- -- 18 19 Availability policy or charges 20 SECTION 5. That the Code of Ordinances, City of 21 Sebastian, Florida, is hereby amended by adding a section 22 to be numbered Section 27-8, which said section shall real 23 as follows: 24 25 CODING: Words un lined we additions; words in skPud"hr� type are deletions from existing law. 8 RUG -31-1992 15:07 FROM GRRYIHRRRISBROBINSON TO 914075895570 P.02 Orlando August 31, 1992 VIAL FACSI 4071589-5570 Mr. Robb McClary City Manager City of Sebastian P.O. Box 780127 Sebastian, Florida 32978 RE. Amendments to Utility Ordinance Dear Robb: As I promised you last week, enclosed are proposed amendments to Chapter 27 of the Code of Ordinances of City of Sebastian. I am also enclosing a proposed notice which needs to be run in the newspaper prior to September 6, 1992. This ordinance should be noticed for hearings the same way as any other City ordinance. If you have any questions regarding this matter, please don't hesitate to call on me. Sincerely yours, C� IGLU/ C Thomas A. Cloud, squire GRAY, HARRIS & ROBINSON, P.A. TAC: jlm Enclosures cc: Charles Ian Nash, City Attorney (via overnight mail) Gerald C. Hartman GRAY, IIABBI6 & ROBINSON PROFESSIONAL ASSOCIATION THOMAS C. SHAW J. CHARLES GRAY GORDON H. HARRISPAUL ATTORNEYS AT LAW J. MOKRIS RICHARD M. RO BINSON ALAN R. BUTTERWORTH PHILLIP P. FINCH PAUL 6. OUINN. JR- gAMELA O- PRICE DAVID L. 6CMICK JAMES F. PAGE. JR. JACK K. MFMULLEN WILLIAM A. SOYLCS jUIT6 1200 GLASS DANK BUILDING ORLANDO L. EVORA THOMAS A. CLOUD 201 EAST PINE STREET SOS NORTH ORLANDO AVENUE 9USAM D. TASSELL 'YqO 7. MAq jMALL•JR. POST OFFICE BOX 3088 POST OFFICE BOX 320767 QUAKC RICH ARO ETON LORI R. BCN TON J. MASON WILLIAMS.= LEO P. ROCK. JR, OHO. FL D$6os-9060 COCOA BnAE81 FL 52982-0t67 ANTHONY J- COTTER TRACY A. BORUERT G. ROBERTSON DILL CHARLCS W. SCLL JOHN O.SHOCMAKCR JACK A. KIRSCHENBAUM TELEPHONE (407) e43 -e SBO TCLCPHONE (4071 703-2218 LISA J. FRANK JAMCS W. PCCPLCS.=FAz (407) 2m.66R0 FAX (e07) 783-2297 MICMASL K. WILSON MARK 6. WALKER MRRCST S. FICLOS. JR. LILA I. M<HENRT WRITERS DIRECT DIAL KENT L. HIPP CATM6RIN6 B. RODRIGUEZ MALCOLM R. KIRBCHCNBAUM PLEASE REPLY TO: OUT S. HAGGARD O. COUNSCL Orlando August 31, 1992 VIAL FACSI 4071589-5570 Mr. Robb McClary City Manager City of Sebastian P.O. Box 780127 Sebastian, Florida 32978 RE. Amendments to Utility Ordinance Dear Robb: As I promised you last week, enclosed are proposed amendments to Chapter 27 of the Code of Ordinances of City of Sebastian. I am also enclosing a proposed notice which needs to be run in the newspaper prior to September 6, 1992. This ordinance should be noticed for hearings the same way as any other City ordinance. If you have any questions regarding this matter, please don't hesitate to call on me. Sincerely yours, C� IGLU/ C Thomas A. Cloud, squire GRAY, HARRIS & ROBINSON, P.A. TAC: jlm Enclosures cc: Charles Ian Nash, City Attorney (via overnight mail) Gerald C. Hartman RUG -31-1992 15:06 FROM GRAYIHARRIS&ROHINSON TO 914075895570 P.01 Gxar. HA Izms $c ROBINSON PROICSStONAL ASSOCIATION TNGM.S C. SHAW -AUL J. MOARI5 J. CM.alC9 Oa.T GOROON H, H.aalE L ATTORNEYS AT AW .LAN oaTM JR' !L- DUCK OICM.RO M. ROBINSON 1U1 IC OVO aNI".0 R. FINCH JACK .- MC M U" -ww CLw PMICC GLASS BAN. BUILOIMG EVOR L. EVOR ANDO L. ORLANDO JAM E9 F,, P.[OC. JR. SUITE 'ZOO SUSAN D-TwSSCLL WILLIAM A. 80TLES 201 CAST PINE STRCCT $OS NORTH ORLANDO AVENUE IIICNARD E. BURRC THOMAS A. CLOUD GYRO r. n^QSMALL.JR. POST O -FICC BOY 3060 POST O"ICC BOK 220757 LORI R.9CNTON ANTHOMT J. COTTCR 1. MASON WILL1I1M fi. SII LCD P, MOCK -JA � OgyeXDO. FL 3QeoE-3068 COCOe HFiLCB. FL 'J6932 -07e7 TRACT A.00ROERT B. ENOEMw.6R G. aoscROoN DaG LISA J• rRIAN. IISA CHARLES W. SCLL A. FINSCMCNBAUM T6LC PHONE IAOTI 8-3-BBBO TELEPMOME Iw071 783-CiIO MICHAEL . WILSON JACK JLMC! W. M[£PLCS .S 'Al IAOT Eu -5690 rw. 1.07) 783-2297 ARK S. WALKER LILA I. FORREST S. 71£LD 6. JR. H"NR7 L.. NIPP WRITER! DIRECT DIAL 'ATMENT FTNN6 B. 000R1Gu£2 CRI yALCOLM a..IRECNCNBAUI` CW 5. M.GGARO -LEASC PCPLT TO: Or COVrf CL L / 3 //7d— I Date FAX COVER SHEET TO. ?r46 �%%��/J•� , ✓ FAX #: `f°� FROM: V`/-�YIQS ft � — C/M #: 4/0i07^1 NUMBER OF PAGES P7 (inciuding cover sheet) Please Note our new FAX # 407-244-5690 RE: anv problems are encountered With this transmittal contact: at x LRpf-/, AMN A*+, HARTMAN & ASSOCIATES, INC. engineers, hydrogeologists, surveyors & management consultants Mr. Robb McClary City Manager City of Sebastian P.O. Box 780127 Sebastian, Florida 32978 August 28, 1992 HAI #92-023.04 Subject: Utility Negotiations, Farmers Home Administration Grant Funding, Financing and Transition Activities Dear Mr. McClary: This letter constitutes our proposal to the City of Sebastian to perform negotiations with General Development Utilities, Inc. (GDU) outside of the scope of the 180.301 hearing project. Moreover, we will provide financial analyses associated with developing a finance plan and working with the City's staff in obtaining necessary capital, preparing rate and charge studies, establishing a tariff, establishing policies and procedures, establishing rules and utility standards, establishing policies and procedures forms and other associated activities with the establishment of a City owned and operated water and wastewater utility. Moreover, Hartman & Associates, Inc. (HAI) will provide additional services relative to the transitioning of the facilities and operations to the City, as well as the other activities necessary to provide for full- scale operations. The overall scope and activities associated with the above work is dependent upon the extent of the negotiations and the type of contract that can be negotiated between the parties. Therefore, we can only propose that authorizations with an up -set limit be established for the activities as they proceed. Our cost would be incurred on an hourly rate basis with an up -set limit. We propose that the up -set limit for the above referenced activities be established at $50,000.00. The up -set limit referenced above also includes whatever assistance we need to perform regarding closing and due diligence associated therewith. We have provided the consideration of hourly rates which are lower than our previous rates in accordance with our discussions. The hourly rate schedule to be used for this contract is as shown in Exhibit "A". We consider the above referenced activities as the cost of acquisition and would expect that such costs would be reimbursable to the City using the debt instrument as chosen by the finance team. 201 EAST PINE STREET • SUITE 1000 • ORLANDO, PL 32801 TELEPHONE (407) 839-3955 • FAX (407) 839-3790 PRINCIPALS: JAMES E. CHRISTOPHER • CHARLES W. DRAKE • GERALD CA 1AIVI'MAN • MAIt61. LUKE -,MARK A. RYNNING • IIAROLD E. SCIIMIDT.IR. rn Mr. Robb McClary August 28, 1992 Page 2 If the above is acceptable to you, please execute one (1) copy of this agreement and forward it to our offices. Very truly yours, Gerald C. Hartman, P. President City of Sebastian Date GCH/ch C15/McClary.gch Attachment EXHIBIT "A" HARTMAN & ASSOCIATES, INC. HOURLY RATE SCHEDULE Gerald C. Hartman, P.E. $90.00 Partners/Principals (P.E./ P.G./ P.L.S.) $85.00 Division Manager/Head (Engineer VIII, P.E./C.P.A./M.B.A.) $75.00 Engineer VII (P.E.) $65.00 Engineer VI (P.E.) $60.00 Engineer V $55.00 Engineer IV $50.00 Engineer III $45.00 Engineer I/II $40.00 Senior Scientist $55.00 Project Manager $55.00 Senior Inspector $48.00 Inspector $40.00 Senior Planner/Designer $46.00 Hydrogeologist VIII (P.G.) $75.00 Hydrogeologist VII (P.G.) $65.00 Hydrogeologist VI (P.G.) $60.00 Hydrogeologist V $55.00 Hydrogeologist IV $50.00 Hydrogeologist III $45.00 Hydrogeologist I/11 $40.00 Engineering Technician IV $45.00 Engineering Technician III $40.00 Engineering Technician II $35.00 Engineering Technician I $30.00 Survey Crew Chief $40.00 Survey Technician 111 $40.00 Survey Technician II $35.00 Survey Technician I $25.00 Graphics Manager $45.00 Graphics Technician $35.00 Senior Rate Analyst (M.B.A.) $50.00 Senior Rate Analyst $50.00 Rate Analyst $40.00 Secretarial Support $20.00 Reproduction/Courier Support $15.00 Administrative Assistant $35.00 Senior Word Processor $30.00 Word Processor $25.00 Party Chief $35.00 Assistant Party Chief $28.00 Rod -man $20.00 GCH/at/ - 7/1/92 M-2/4HrlyRte.Sch 11411/11t3Y1Wf6 HARTMAN & ASSOCIATES, INC. HOURLY RATE SCHEDULE Gerald C. Hartman, P.E. Partners/Principals (P.E./ P.G./ P.L.S Division Manager/Head (Engineer Engineer VII (P.E.) Engineer VI (P.E.) Engineer V Engineer IV Engineer IH Engineer I/II Senior Scientist Project Manager Senior Inspector Inspector Senior Planner/Designer Hydrogeologist VIII (P.G.) Hydrogeologist VII (P.G.) Hydrogeologist VI (P.G.) Hydrogeologist V Hydrogeologist IV Hydrogeologist III Hydrogeologist I/II Engineering Technician IV Engineering Technician III Engineering Technician If Engineering Technician I Survey Crew Chief Survey Technician III Survey Technician II Survey Technician I Graphics Manager Graphics Technician Senior Rate Analyst (M.B.A.) Senior Rate Analyst Rate Analyst Secretarial Support Reproduction/Courier Support Administrative Assistant Senior Word Processor Word Processor Party Chief Assistant Party Chief Rod -man GCH/at/ - 7/1/92 M-2/4HrlyRte.Sch VIE, P.E./C.P.A./M.B.A.) $90.00 $85.00 $75.00 $65.00 $60.00 $55.00 $50.00 $45.00 $40.00 $55.00 $55.00 $48.00 $40.00 $46.00 $75.00 $65.00 $60.00 $55.00 $50.00 $45.00 $40.00 $45.00 $40.00 $35.00 $30.00 $40.00 $40.00 $35.00 $25.00 $45.00 $35.00 $50.00 $50.00 $40.00 $20.00 $15.00 $35.00 $30.00 $25.00 $35.00 $28.00 $20.00 General Development UbiLie's.11lC. An Atlantic Gull Communities Corporation Subsidiary 2601 SOUTH BAVSHORE DRIVE MIAMI, FL 33133-5461 (305)859-4331 Mr. Jerry Hartman Hartman & Associates 201 E. Pine Street Suite 1000 Orlando, Florida 32801 Re: Sebastian Dear Mr. Hartman: AMU Charles E. Fancher, Jr. PRESIDENT September 9, 1992 Attached is the information regarding the draft Sebastian rate case documents which contain information concerning operations financial and engineering details. We will need to reschedule our meeting for the week of September 28, 1992, since Larry Rutherford is out of the County for several weeks beginning that next week. Very truly yours, 4— Charles E. Fancher, Jr. CEF:gi Attachment cc: Rob McClary, City of Sebastian City of Sebastian W atm and Wntcwater Systems Alternative I Development of 5 -Year Pro[prm• of Utility E d R fl'si GrillP t R 02:27 PM 29 -Sep -92 Line No. CY 1991 Adjustments Adjusted Escalation Escalation C.I.A. Y- =-A:-- D¢ <mbec 3l, Escalation Escal.don Description _ (Actual) (1) To CY 1991 CY 1991 Reference CY 1992 Reference CY 1993 Reference CY 1994 Ref¢mce CY 1995 Escalatso0 Rd¢cncc CY 1996 Escalation Reference Operating Rcvmucs (2) CY 1997 1 2 Water System Wastewater System $315,648 139,688 512,970(1) $328,618 Input 8327,432 Input $346,001 Input $365,181 Input 5384,990 Input $405,445 Input $426,565 (7,791)(1) $131,897 Input 145,794 Input 154,938 Input 164,389 Input 174,156 Input 184,248 Input 194,674 3 Total Operating Revenues 455,336 5,179 460,515 473,226 500,939 529,570 559,146 $89,693 OtherRevenues 621,239 4 Unbilled Revcnues 13,911 (13,911) 0 1 0 I 5 Mlsccllancous Service Revmucs 2,525 0 2,525 1 2,525 0 1 1 0 1 0 1 0 6 Mete, 1pstallation Fen (3) 0 5,000 5,000 1 1 2,525 1 2,525 1 2,525 1 2,525 1 2,525 7 Interest Income (4) 0 2,994 2,994 1 5,000 2,994 1 1 5,000 1 5,000 1 5,000 1 5,000 1 5,000 2,994 1 2,994 1 2,994 1 2,994 1 2,994 8 Total OtherRevenurs 16,436 (5,917) 10,519 10,519 10,519 10,519 10,519 9 Total Combined System Revenues $471,772 (738) $471,034 8483,745 8511,458 5540,089 $569,665 10,519 10,519 Operating Expenses (5) $600,212 $631,758 10 11 Salaries Pensions and Benefits 106,186 22,086 65,975(6) 172,061 3 179,804 3 187,895 3 196,350 3 205,186 3 214,419 3 224,068 12 Public Relations 72 29,532 Q) 51,618 3 53,941 3 $6,368 3 58,905 3 67,555 3 61,325 3 67,720 13 Fuel of Power Purchased - Wat¢u Sysm IS,374 0 0 72 15,374 3 12 75 3 79 3 82 J 86 3 90 7 94 11 Fuel o[Power Purchased-Saw¢System 25,050 (1,754)(20) 23,297 12 16,672 12 18,057 12 19,521 12 21,079 12 22,732 12 24,482 IS Contractual Services- Legal 111 889 (8) 1,000 2 25,263 12 27,362 12 29,581 12 31,942 12 34,446 12 37,098 16 Contractual Services - Engineering 0 15,000(9) IS,ODO 2 1,041 2 1,084 2 1,128 2 1,174 2 1,223 2 1,273 17 Treatment - Chemicals (water) 7,120 0 15,615 2 16,755 2 16,922 2 17,615 2 18,338 2 19,090 IB Treatment- chemicals(Serrr) 2,812 (197)(20) 7,120 2,615 12 12 7,721 12 8,367 12 9,041 12 9,762 12 10,528 12 11,338 19 Treatment - Expenses 18,444 0 18,444 2 2,836 12 3,072 12 3,321 12 3,586 12 3,867 li 4,164 20 Uncollectible Accounts 5,357 (3,054)(10) 2,303 6 19,200 2,366 2 6 19,987 2 20,807 2 21,660 2 22,548 2 23,473 21 Customer Accounting Expense 5,968 0 51968 2 2,505 6 2,648 6 2,796 6 2,948 6 3,106 22 A and G - Expenses 7,888 0 7,888 1 6,213 2 6,467 2 6,733 2 7,009 2 7,2% 2 7,595 23 Management Fees IS,484 (15,484)(11) 0 2 7,888 1 7,888 1 7,888 1 7,888 1 7,888 1 7,808 24 Property lnmranee 21,597 0 21,597 3 0 22,569 2 3 0 23,584 2 3 0 24,646 2 0 2 0 2 0 25 Regulatory Commission Expense 20,450 (20,450)(12) 0 2 0 J 25,755 3 26,914 3 28,125 26 Miscellancous General Expense 429 0 429 2 2 0 2 0 2 0 2 0 2 0 27 Transportation Expense 2,091 (146)(20) 1,945 7 447 2,003 2 7 465 2 484 2 504 2 $24 2 546 28 Compensated Abamcn (2,502) 2,502 (13) 0 1 0 2,063 7 2,125 7 2,189 7 2,254 7 2,322 29 Maintenance0 Treatment Plant - Expense 24,182 (1,693)(20) 22,489 2 23431 1 2 0 1 0 1 1 0 1 0 30 Maintenance of Mein. - Esp...10 (3)(20) 17 2 , 17 24,371 2 25,370 2 26,411 2 27,493 2 28,621 31 Maintenance of Meten-Expense 2,708 0 2,708 2 2 IB 2 19 2 20 2 20 2 21 32 Maintenance of Hydrants - Expense 417 (29x20) 388 2 2,819 2 2,935 2 3,055 2 3,180 2 3,311 2 3,446 33 Maintenance - Sourceo[Suppy 215 (1S)(20) 200 3 404 2 420 2 437 2 4$$ 2 474 2 494 34 Maintenance of Pump8.33.-Expense 1,650 (116)(20) 1,535 2 209 1,597 3 2 218 3 228 3 238 3 249 3 260 35 Administrative Allocation (14) 0 36,887 36,887 2 38,400 1,663 2 1,731 2 11802 2 1,876 2 1,953 2 39,974 2 41.613 2 43,319 2 45,095 2 46,944 36 Total Operating Expenses 303,207 107,746 410,953 430,510 451,093 472,635 495,211 518.859 543,621 City of Sel,wim Water sad Waatcvatcr Sptem. Alternative I Dwelooment (5-Y . n..,r.. [ Util' P d Revenuesutilii. GDU P t R t 11:34 AM 29 -Sep -92 Line No. Derai0tioe CY 1991 A4juumenu Adjwted Emelubn Eeea-v. Colander Year EndingDecember 3l .,at Ercalatbe (Actual) (1) To CY 1991 CY 1991 Rdarmee CY 1992 Rdenenec CY 1993 Reference CY 1994 Reference CY 1995 Ercalation Reference CY 19% Eapiatbo Reform" 37 PaymB Tecta 7,681 (7,681)(15) 0 3 CY 1997 38 Property Taxa 100,611 (100,611)(11) 0 3 0 � 0 3 0 3 0 3 0 39 ` Intone Taxa 30,117) 30.117(11) 0 3 0 3 0 p 3 0 3 0 3 40 Total Expen.a 0 3 0 3 0 3 0 3 0 3 00 381,382 29,571 410,953 430,510 451,093 472,635 41 Net Revenue 495,211 518,859 543,621 90,390 (30,309) 60,081 53,235 60,365 67,454 74,454 81,353 88,137 Other Revenue Requ'nemenu 42 Debt Service Paymmu(16) 0 0 Capital Outtey Funded From 0 Input 0 Input 0 Input 0 Input 0 ;,Put 0 Input 0 43 Operating Reveoua(17) 0 5,000 5,000 7 Trowfer to Renenl and 5,150 7 5,305 7 5,464 7 5673 , ] 5,796 7 5,970 44 4$ Replacement Fund (18) Trander to General Fund (29) 0 0 23,552 23,552 Input 24,187 Input 25,573 Input 27,004 Input 28,483 Input 50,306 50,306 2 52,769 2 54,516 2 56,751 p 2 30,011 Input 31,508 46 Total Older Revenue Requirement, 59,078 2 61,500 2 64,021 0 78ASS 78,9S8 81,706 85,393 89,219 93,188 97,307 101,579 47 Balm" Available for Older Purpme, 590,390 (5109,167) (518,777) (528,471) ($25.028) (521.765) (518734) (1115.953) (f13.412) Foono[o.he- on page 3 and 4 of 4. City of Sebetien Wet.and W"u er Syteme Alto i.1 Development of5 Year Proforma of Utility P. en Rewmuee UtIlizint ODU - Present Rd Goa Eacalado, FIGIYc. Endin Se tomb. 30 No. E=Juion Faaare Reference CY 1992 CY 1993 CY 1 4 Cl 1995 CY 1996 CY 1997 I Conaam Factor 1 1.0000 1.000D 1.0000 1.0000 1.0000 1.0000 2 General 1.11W. 2 1.0410 1.0410 1.0410 1.0410 1.0130 1.0410 3 laborE=Jetor 3 1.0450 1.0450 1.0450 1.0450 1.0450 1.0450 4 C" m. Growth Factor -Wa. 4 1.N57 1.0437 1.0419 1.0402 IAM 1.0372 ( 5 Coaom. Grooth oflsicn Fe ce - Water 5 1.080 1.0847 1.0829 1.0812 1.0796 1.0782 6 Rate Remnue Factor -Combined 6 1.0276 1.0586 1.0572 1.0558 1.0546 1.0535 7 Capita E=dmion Factor 7 1.0300 1.0300 1.0300 1.0300 1.0300 1.0300 8 Cutom. Growth Factor - Sew. 8 1.8045 1.0432 1.0414 1.03% 1.038E 1.0348 9 Comer Growth/IaOaloo Fetter - Sewer 9 1.0861 1.0842 1.0821 1.0808 1.0792 1.0778 10 FlowGr.wh Eacduer-Water 10 1.0360 1.0348 1.0336 1.0325 1.0315 1.0305 11 Flow Growib Escalator - Sew. 11 1.0434 1.0421 1.0401 1.0388 1.0374 1.0360 12 ChemcalaVdliu. Eacdator 12 1.0844 1.0831 1.0811 1.07% 1.0781 1.0770 City of Sebastian Water and Wastewater Systema Alternative 1 Development of S—Year Proforma of Utility Expenses and Revenuca Utilizine GDU — Present Ratea (1) Unless otherwise noted, amounts shown have been derived from data contained within the Company's Application To Increase Rates filed with the City of Sebastian for the year ended December3l, 1991. It should be noted that Operating Revenues and Expenses include adjustments as reflected in the Rate Filing. (2) It should be noted that the revenues shown for years 1992 — 1997 have been based on the existing rate structure, each respective system's customer growth and average use projections. For this analysis, it was assumed that the water and wastewater systems would increase at an annual rate of 50 and 25 Equivalent Residential Units (ERUs) respectively. In addition an annual rate indexing factor of 2.00% has been utilized beginning in 1993. Annual Rate Index Factor: 2.00% (Effective Beginning CY 1993) (3) Amount shown reflects assumed growth rate of fifty (50) units annually being charged existing meter installation fee of $100.00. (4) Amounts shown based on earnings derived from estimated balances for funds to be established pursuant to public ownership and the issuance of revenue bonds, including interest income earned from the Debt Service Reserve Fund. (5) Amounts shown do not include taxes, depreciation, or amortization expenses. (6) Adjustment shown reflects additional Utilitypersonnel estimated to be required by City for utility operations. (7) Amount shown is an adjustment to reflect pensions and benefits expense at 35% of payroll expenses to consistent with with current City policies. (8) Amount shown reflects legal expenses associated with utility operations (i.e. ordinance preparation). (9) Adjustment shown to reflect professional engineering services to cover i)the cost of an annual utility inspection and report, and ii) funds to cover the cost of rate analyseststudies to meet the requirements of the Bond Resolution. (10) Amount shown is an adjustment to reflect uncollectible accounts at an assumed rate of 0.5% of current year sales revenue. (11) Adjustments shown reflect the removal of corporate salaries not needed under municipal ownwership. (12) Adjustment made in order to recognize that the Utility would no longer be under FPSC jurisdiction once it is owned by the City. (13) Adjustment shown to reflect correction of credit in compensated balances assumed to be a one—time occurence due to forfeiture of employee benefits. (14) Adjustment shown reflects the Utility's pro rata share of the administrative costs accounted for in the City's General Fund which are allocable to the Utility. Based on the analysis of administrative allocations forvarious other utilities, it has been assumed that this would total approximately 8.01% of the Utility's operating revenues. (15) Amount shown is the net adjustment necessary in order to be consistent with the staffing requirements of the utility assumed under City ownership as discussed in footnote No. 11. It should be noted thfat the amounts shown also reflect the changes required in order to be consistent with the average cost associated with the City's current employee benefits package. (16) Amounts shown are the annual debt service payments assuming a levelized debt structure, total bond principal of $1,400,000, a 30 year term, an annual average 6.5% interest rate, no capitalized interest funded from bond proceeds, and a fully funded Debt Service Reserve Fund. (17) Amounts shown assume that the capital outlay requirements which are to be funded from rate revenue for the purchase of vehicles, furniture, equipment, and other similar items which are normally not funded from the Renewal and Replacement Fund. This is based on information for other similar utility systems. (18) Amounts shown are the annual transfers estimated to be required to be transferred to the Renewal and Replacement Fund in order to ensure that adequate funds are available to satisfy the day—to—day capital replacement needs of the utility. For this analysis, it was assumed that this transfer would be equal to approximately 5.00% of the current year's gross revenues. (19) Adjustment to recognize the recovery of property taxes currently paid to the City from the utility in order for the City to remain on a revenue—neutral basis. (20) This adjustment excludes tax expense included in operating and maintenance eexpenses since the Citywould be exempt from sales tax under City ownership. This includes for example, transportation expenses, office equipment, and other miscellaneous supplies. Line No. Description Operating Revrnuas (2) 1 Watersystem 2 Wastewater System 3 Total Operating Re cnua Other Revenues 4 Unbilled Revenue 5 Miscellaneous Servicc Revenues 6 Meter Installation Fees (3) 7 Interest Income (4) 8 Total Other Rcveouea 9 Total Combined System Revenues 36 Total Operating Expenses City of Sebastian Water and Wastewater Systems Alternative 2 Develoommt of 5 -Year Proforma of UOR B d 11:50AM 29 -Sep -92 Operating Expenses (5) 10 Salad. 11 Pensions and Benefit, 12 Public Relations 13 Fuel of Power purchased - Water System 14 Fuel of Power purchased - Sever System 15 Contractual Services - Legal 16 Contractual Serviw- Engineering 17 Treatment - Chemicals(Water) 18 Trcatment - Chemicals (Sever) 19 Treatment - Expenses 20 Uncollectible Accounts 21 Customer Accounting Expense 22 A and G - Expenses '3 Management Fees G4 property Inmrence 25 Regulatory Commission Expense 26 Miscellaneous General Expense 27 Transportation Expense 28 Compensated Absences 29 Maintenance Treatment Plant - Expense 30 Maintenance of mains -Expense 31 Maintenance of Metro - Expense 32 Maintenance of Hydrmla- Expense 33 Maintenance - Source of Supply 34 Maintenance of Pump7LS.-Expense 35 Administrative Allocation (14) 36 Total Operating Expenses City of Sebastian Water and Wastewater Systems Alternative 2 Develoommt of 5 -Year Proforma of UOR B d 11:50AM 29 -Sep -92 106,186 65,87S(6) 172,061 3 179,804 3 Calender Year Encal December 3l 3 196,350 3 205,186 3 214,419 CY A) 1 (ActuaD (1) Adjustments To CY 1991 CY 1991 CY 1991 Exeence Reference CY 1992 Exalatlon 53,941 Escalation 56,368 Escalation 58,905 Exalatbn 6L555 Escalttbn 64,325 3 67,220 72 0 72 Reference CY 1993 Rc(mmm. CY 1991 Reference CY 1995 Rderrnce CY 1996 Reference CY 1997 $315,648 $49,042 $364,690 Input $378,025 Input $394,992 Input $412,486 Input $430,522 Input $449,115 Input 5468,279 139,688 81,484 $221,172 Input 230,809 Input 245,254 Input 260,184 Input 275,612 Input 291,554 Input 308,024 455,336 130026 585,862 889 (8) 608,834 2 640,246 2 672,670 2 706,134 2 740,669 2 776,303 13,911 (13,911) 0 1 0 1 0 1 0 1 0 1 17,615 2 18,338 2.58 0 2,525 1 2,525 1 2,525 1 2,525 1 2,525 1 0 2,525 1 1 0 2,525 0 0 5,000 5,000 1 5,000 I 5,000 1 5,000 1 5,000 1 5,000 1 5,000 12 6,870 6,870 1 6,870 1 6,870 1 6,870 1 6,870 1 6,870 1 6,870 16,436 (2,041) 14,395 0 14,395 2 14,395 2 14,395 6 2 14,395 6 2 14,395 6 14,395 $471,772 128,485 $600,257 0 5673,229 1 5654,641 1 $687,065 1 $720,529 1 $755,064 2 1 5790,698 106,186 65,87S(6) 172,061 3 179,804 3 187,895 3 196,350 3 205,186 3 214,419 I 224,068 24086 29.S32(7) 51,618 3 53,941 3 56,368 3 58,905 3 6L555 3 64,325 3 67,220 72 0 72 3 75 3 79 3 82 3 86 3 90 3 94 15,374 25,050 0 15,374 12 16,672 12 18,057 12 19,521 12 21,079 12 22,732 12 24,482 (1,754)(20) 23,297 12 25,263 12 27,362 12 29,581 12 31,942 12 34,446 12 37,098 111 889 (8) 11000 2 1,041 2 1,064 2 1.128 2 1,174 2 1,223 2 1,273 0 15,000 (9) 15,000 2 15,615 2 16,85 2 16,922 2 17,615 2 18,338 2 19,090 7,120 2,812 0 7,120 12 7,721 12 8,363 12 9,041 12 9,762 12 10,528 12 11,338 18,444 (197)(20) 0 2,615 12 2,836 12 3,072 12 3,321 12 3,566 12 3,867 12 4,164 5,351 (2,428)(10) 18,444. 2,929 2 6 19,200 3,044 2 6 19,987 2 20,807 2 21,660 2 22,548 2 23,473 5,968 0 5,968 2 6,213 2 3,201 6,467 6 2 3,363 6,733 6 2 3,531 7,009 6 3,703 6 3,882 7,886 0 7,888 1 7,888 1 7,888 1 7,888 1 7,680 2 1 7,296 7,880 2 1 7.595 7,888 15,484 (15,41PIXII) 0 2 0 2 0 2 0 2 0 2 0 21,597 0 21,597 3 22,569 3 23,584 3 24,646 3 25,755 3 26,914 2 3 0 28,125 20,450 (20,450x12) 0 2 0 2 0 2 0 2 0 2 0 419 0 429 2 447 2 465 2 494 2 504 2 524 2 2 0 546 21091 (146x20) 1,945 7 2,003 7 2,063 7 2,18 7 2,189 7 2,254 7 2,322 (2,502) 2,502 (13) 0 1 0 1 0 1 0 1 0 1 0 1 24,182 (1,693)(20) 22,489 2 23,411 2 24,371 2 25,310 2 26,411 2 27,493 2 0 28,621 18 (1)(20) 17 2 17 2 18 2 19 2 20 2 20 2 21 2,708 417 0 2,708 2 2,819 2 2,935 2 3,055 2 3,180 2 3,311 2 3,446 (29)(20) 388 2 404 2 420 2 437 2 45$ 2 474 2 494 215 (15x20) 200 3 209 3 218 3 228 3 238 3 249 3 260 1,650 (116x20) 1,535 2 1,597 2 1,663 2 1,731 2 1,802 2 1,876 2 1,953 0 46,928 46,928 2 48,8.52 2 50,854 2 52,940 2 55,110 2 57,370 2 59,722 303,207 114413 421,620 441,640 462,670 484,677 507,737 531,888 557,174 City of Sebuti an Water and Wastewater Systema Alternative 2 Development of 5 -Year Proforma of Utility Eaoemes and Revenues Ui 1'i or Indian County Rates 11:50 AM 29 -Sep -92 Footnotea Shown on pages 3 and 4 o14. Calender Year Endinr December 31 Line CY 1991 Adjustmmts Adjusted Eacaietion Ercaletan Escalation Escalation Escalation Escalation No. Deuription (Actual) (1) To CY 1991 CY 1991 Refer... CY 1992 Reference CY 1993 Rdereoce CY 1994 Refaeoce CY 1995 Reference CY1996 Refer.ce CY 1997 37 Payroll Ter. 7,681 (7,681x15) 0 3 0 3 0 3 0 3 0 3 0 3 38 Property T.. 100,611 (100,611x11) 0 3 0 3 0 3 0 3 0 3 0 3 p 39 Income Taus 19,001 (19,001x11) 0 3 0 3 0 3 0 3 0 3 0 3 0 f ■ 40 Total Expenses 430,500 0 \\\ (8,880) 421,620 441,640 464670 484,677 507,737 531,888 557,174 41 Net Revenue 41,272 178,637 181,589 191,971 202,388 211,792 223,176 233,524 Other Revenue Requirements 42 Debt Service payments (16) 0 81,146 81,146 Input 81,146 Input 81.146 Input 81,146 Input 81,146 input 81,146 Input 81,146 Capital Outlay Funded From 43 Operating Revenues (17) 0 5,000 5,000 7 5,150 7 5,305 7 5,464 7 5,628 7 5,796 7 5,970 Transfer to Renewal and 44 Replacement Fund (18) 0 30,013 30,013 Input 31,161 Input 32,732 Input 34,353 Input 36,026 Input 37,753 Input 39,535 45 Transfer to General Fund (19) 0 50,306 50,306 2 52,369 2 54,516 2 56,751 2 59,078 2 61,500 2 64,021 46 Total Other Revenue Requirements 0 166,465 166,465 169,826 173,698 177,714 181,878 186,195 jK67F 47 Balance Available for Other Purposes 541,272 (5766.465) SIiI72 $11.763 $16.273 $24.675 530,915 536.981 f42852 Footnotea Shown on pages 3 and 4 o14. City o(ScbaNav Wate and Waacwatc Syacmc ' Aitervaiwe2 11:55 AM 29 -Sep -92 12lom eM or5-Y Frf o(Ut 11 ity Fg MR Ut illain, India. RI Coo" Eta Llnc ' No. Fxalazion Factor Ficalaziov Re(cexe Ficel Year Fsdine Se9temba 30 CY 1992 CY 1993 CY 1991 CY 1995 CY 1996 CY 7997 1 Con Factor 1 1.0000 LOOOD 1.0000 1.0000 1.0000 1.0000 2 General ln0aion 2 1.0410 1.0410 1.0410 1.0410 1.0410 1.0410 3 Labor]Rc taor 3 1.0450 1.0450 1.0450 1.0450 1.0450 1.0450 4 Cuaomc Growtb Factor -Wazc 4 1.0457 1.0437 1.0419 1.0402 1.0386 1.0372 1 5 Cuaomer Growth/InOaion Faacr-Wazc 5 1.0867 1.0847 1.0829 1.0812 1.0796 1.0782 6 Mc Rcwenue Factor -Combined 6 1.0392 1.0516 1.0506 1.0497 1.0489 1.0481 7 Capiml Elation Factor 7 1.0300 1.0300 1.0300 1.0300 1.0300 1.0300 8 Cuaomc Growth Factor - Sews 8 1.8045 LM32 L0414 1.0396 1.0382 1.0368 9 Cuaomc Growth/InOaion Fa to - Sewer 9 1.0861 1.0842 1.0874 1.0808 1.0792 1.0778 10 Flow Growth Fxalator -Wazc 10 1.0360 1.0348 1.0336 1.0325 1.0315 1.0305 11 Flow Growth Fxalazc-Sewer 11 1.0434 1.0421 1.0401 1.0388 1.0374 1.0360 12 Cbcm ca b/Uilitia Fecalaoe 12 1.0844 1.0931 1.0811 1.0718 1.0784 1.077D City of Sebastian Water and Wastewater Systems Alternative 2 Development of 5—Year Proforma of Utility Excenses and Revenues Utilizing Indian River County Rates (1) Unless otherwise noted, amounts shown have been derived from data contained within the Company's Application To Increase Rates filed with the City of Sebastian for the year ended December 31, 1991. It should be noted that Operating Expenses include adjustments as reflected in the Rate Filing. (2) It should be noted that the revenues shown for years 1992 — 1997 have been based on the existing rate structure, each respective system's customer growth and average use projections. For this analysis, it was assumed that the water and wastewater systems would increase at an annual rate of 50 and 25 Equivalent Residential Units (ERUs) respectively. In addition an annual rate indexing factor of 200% has been utilized beginning in 1993. Annual Rate Index Factor: 200% (Effective Beginning CY 1993) (3) Amount shown reflects assumed growth rate of fifty (50) units annually being charged existing meter installation fee of $100.00. (4) Amounts shown based on earnings derived from estimated balances for funds to be established pursuant to public ownership and the issuance of revenue bonds, including interest income earned from the Debt Service Reserve Fund. (5) Amounts shown do not include taxes, depreciation, or amortization expenses. (6) Amount shown is an adjustment to reflect pensions and benefits expense at 35% of payroll expenses to consistent with with current City policies. (7) Amount shown reflects legal expenses associated with utility operations (i.e. ordinance preparation). (8) Adjustment shown to reflect professional engineering services to cover i)the cost of an annual utility inspection and report, and ii) funds to cover the cost of rate analyseystudies to meet the requirements of the Bond Resolution. (9) Amount shown is an adjustment to reflect uncollectible accounts at an assumed rate of 0.5% of current year sales revenue. (10) Adjustments shown reflect the removal of corporate salaries not needed under municipal ownwership. (11) Adjustment made in order to recognize that the Utility would no longer be under FPSC jurisdiction once it is owned by the City. (12) Adjustment shown to reflect correction of credit in compensated balances assumed to be a one—time occurence due to forfeiture of employee benefits. (13) Adjustment shown reflects the Utility's pro rata share of the administrative costs accounted for in the City's General Fund which are allocable to the Utility. Based on the analysis of administrative allocations for various other utilities, it has been assumed that this would total approximately 8.01% of the Utility's operating revenues (14) Amount shown is the net adjustment necessary in order to be consistent with the staffing requirements of the utility assumed under City ownership as discussed in footnote No. 9. It should be noted thfat the amounts shown also reflect the changes required in order to be consistent with the average cost associated with the City's current employee benefits package. (15) Amounts shown are the annual debt service payments assuming a levelized debt structure, total bond principal of $2,700,000, a 30 year term, an annual average 6.5% interest rate, no capitalized interest funded from bond proceeds, and a fully funded Debt Service Reserve Fund (16) Amounts shown assume that the capital outlay requirements which are to be funded from rate revenue for the purchase of vehicles, furniture, equipment, and other similar items which are normally not funded from the Renewal and Replacement Fund. This is based on information for other similar utility systems (17) Amounts shown are the annual transfers estimated to be required to be transferred to the Renewal and Replacement Fund in order to ensure that adequate funds are available to satisfy the day—to—day capital replacement needs of the utility. For this analysis, it was assumed that this transfer would be equal to approximately 5.00% of the current year's gross revenues (18) Adjustment to recognize the recovery of property taxes currently paid to the City from the utility in order for the City to remain on a revenue—neutral basis i . 21111 11 0 — �vr z s // // f W, 501 /I s / 2 /9Z��� /Lx�(7/Lyo�.Jiyxo cl 7 84/0 le, 16" QGf iV /7" 7(0/ - - -- /990 /,//Z 68 t / S� aO300 I! r /99D ss/ /� l //iiOwn irn � G� AVN ^41 HARTSiAN & ASSOCIATES, INC. engineers, hydrogeologists, surveyors & management consultants MEMORANDUM HAI #92-023.01 CI TO: Clary--=--ftMike HudkinsHal Schmidt Rob Ori FROM: Gerry Hartman A 4 /� DATE: October 2, 1992 SU71UECT: Sebastian Scneduie Depending upon the October 2, 1992 telephone call and resolution of the Sebastian issues, we believe that the Sebastian transaction would be closed on the following schedule: 1. November 23, 1992 preclosing. 2. December 9, 1992 closing. We are working out the various aspects for this transaction and we will have a conference call on October 2, 1992, regarding the same. End of memorandum. GCH/ch C15/Sebas.mem 201 EAST PINE STREET • SUITE 1000 • ORLANDO, FL 32801 TELEPHONE (407) 839-3955 • FAX (407) 839-3790 PRINCIPALS: JAMES E. CHRISTOPHER -CHARLES W. DRAKE • GERALD C. HARTMAN • MARK L LUKE -MARK A. RYNNING • HAROLD E. SCHMIDT, JR. HART AN & ASSOCIATES, I.. C. engineers, hydrogeologists, surveyors & management consultants October 5, 1992 Mr. Charles E. Fancher, Jr. General Development Utilities, Inc. 2601 South Bayshore Drive Miami, Florida 33133-5461 Subject: Sebastian October 2, 1992 Telephone Conversation Dear Mr. Fancher: HAI #92-023.04 y y i S 9 7077 'al Q CM t Otfim Based upon my notes of our telephone conversation of October 2, 1992, relative to the Sebastian system, you stated that the rate base or total investment situation which General Development Utilities, Inc. (GDU) had in the system approaches $4 million, plus or minus. I stated that the highest cash offer the City ever made to GDU was $2.1 million, and that offer was not accomplished with the insights and investigation which have been done to date. To my knowledge, no higher offer has ever been made to GDU for the Sebastian system. Moreover, that offer did not include any futures, simply a cash situation. Finally, that offer is no longer valid. Based upon the situation which we find ourselves in, the following limits to forming a purchase and sale contract without grant or federal funding involves the following: 1. The City will not institute rates greater than the Indian River County rates for water and sewer. 2. The City will not assess a readiness to serve charge, guaranteed revenue charge, or other similar charge for vacant lots which have not applied for capacity or which have not paid for capacity in the system. 3. The City will consider mandatory connection of occupied homes within 300 feet of a central water main or central wastewater collection system. 4. The City will consider, and will actively pursue and make its best efforts to expand the customer base. Of course, we cannot manufacture residents or manufacture people in the area, and therefore, we are limited to those who actually build homes in the area and are within a cost-effective distance to our utility, or of a sufficient density which 201 EAST PINE STREET • SUITE IOOO • ORLANDO, FL 12801 TELEPHONE (407) 839-3955 • FAX (407) 839-3790 PRINCIPALS: IAMES I.. CI I RISTOPHER • CHARLES W' DRAKE • GERALD C IIAR'I'AIAN • NIARK I. I.I'KF. • VARA A R1'.VN'ING -I [A ROE 1 11 IMIDI'. IR Mr. Charles E. Fancher, Jr. October 5, 1992 Page 2 would make economic sense to bring those customers into the central sewer system or water system. 5. The City will actively pursue the expansion of the water system 6. The impact fee/connection fee level for water and sewer combined is approximately $2,500.00 for the GDU system. You indicated to me that you had not discussed this situation with Mr. Rutherford, even though on the September 30, 1992, you stated that this would be discussed and a decision made by October 2, 1992. No counter proposal was provided by you, other than to say that our proposal was not good enough. You stated that your staff had calculated present value of our proposal less than $1 million. I stated to you that could not be the case and that the present value had to be at least $2 million, given that the numbers provided by GDU to us were correct for the number of available customers along lines. We found out during the conversation that the number provided by GDU to us was the number of lots and not the number of potential customers, and that the number of customers was only in the order of 100 near existing lines and the remaining 900 or so were vacant lots. You requested some additional information which would clarify the proposal to you regarding the present value of the proposal. That will be forthcoming as a separate letter. You reiterated that $650,000.00 in cash was inadequate and that the proposal we made was not adequate for GDU, in that GDU wished more money in up -front cash. I responded to you that we had structured this proposal to maintain the highest total dollars transmitted to GDU. We were given that instruction in our previous meeting. Now, it appears that we are getting a conflicting desire from you relative to the highest cash up -front situation. Given that situation, I responded that the highest up -front cash that we would consider at this time, after some discussion with you, would be $1 million, yet, the futures would be significantly reduced. Subject to the City's review and approval, the higher cash at closing alternative which we commented on would be $1 million cash at closing, and $250,000.00 at 100% of the present connection fees. Once that value is reached, then the next $1 million at 60% of the connection fees; and once that number is reached, $750,000.00 for the futures in the Highlands plat at 20% of the present connection fee. This would provide a total purchase price of $3 million over and above the first $1 million; all of the values are based upon future connection fee revenues. We are not in the habit of negotiating with ourselves and find it a little bit disheartening that you did not provide a counter proposal on October 2, 1992, which you had promised to us. We would appreciate receiving a counter proposal from your side at the earliest juncture. Mr. Charles E. Fancher, Jr. October 5, 1992 Page 3 Of course, the parameters which you must consider are the parameters delineated above. If we are in a situation that a reasonable transaction cannot be consummated and you are not willing to provide a counter offer, then we would appreciate your stating your position to us, such that the City does not waste its time and money on this issue. We would expect a counter offer from you as a memorandum or one-page summary in writing on or before October 7, 1992. All other aspects of the proposal that we provided to you would be maintained with the second set of comments delineated above. Very truly yours, Hartman & Associates, Inc. Gerald C. Hartman, P.E. President GCH/ch C15/Fancher5.gch cc: -Rob McClary, City of Sebastian Tom Cloud, Esquire, GHR Hal Schmidt, HAI Larry Rutherford, GDU - Miami City of Sebastian POST OFFICE BOX 780127 o SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 October 8, 1992 via Pax Thomas A. Cloud, Esq. Gray, Harris, & Robinson, P.A 201 East Pine Street P.O. Box 3068 Orlando, FL 32802 Re: GDU Negotiations Dear Tom: Thank you for your proposal outlining an estimate of fees for legal work for the acquisition of the General Development Utilities System in Sebastian. I have placed your letter on the Regular City Council Agenda of October 14, 1992 for City Council approval. However, the estimated legal expense of of $75,000 to $100,000 appears high and is more than the combined legal expenses to date for the "unbuckling" agreements with the County, the initial feasibility study, and the other work you have done for us. Therefore, will you please provide the details and basis you used to develop this estimate? I believe the City Council will need this information prior to its meeting of October 14, 1992 in order to make a well informed decision. Consequently, I ask .you to fax your response to me at your earliest convenience so that I may forward the information to the City Council. Thank you in advance for your consideration and response to this request. Sincerely, Robert S. McClary City Manager RSM/jmt cc: Lonnie R. Powell, Mayor & Sebastian City Council I IAIITMAN & /1S,` O CIA' FS1 INC. engineers, hydrogeologists, surveyors & management consultants Mr. Robert S. McClary City Manager City of Sebastian P.O. Box 780127 Sebastian, Florida 32978-0127 October 14, 1992 HAI #92-023.00 QC11992 � �, ('dry rylanaget s OV11ce Subject: Chapter 180.301 Hearing, Briefing Document and Ordinance Assistance Invoice No. 6 Period: September 10, 1992 through October 7, 1992 Dear Mr. McClary: This Invoice is for Professional Services related to the above project. A. TECHNICAL SERVICES B. OTHER DIRECT COSTS $0.00 ^.8:bi'�P<N:CSS%:q`:iiC•n:.r::p:«�:+n:<n::�<:.�:.,:.;<o.<::.a..«:.<::.,..; AMquNr uu� tyls rlv�t�►c� .°,�r; . ..... •No o�<+ke +%a �%E',¢�,opo� L>o Sa'N;+y::�E � � i a n {�y yy CONT ioa:', RECAP Up -Set Limit Amount Previously Billed Current Billing Total Billed To Date Amount Remaining $10,779.71 $1,185.00 $19,400.00 $11,964.71 $7,435.29 �7 p��s—�. (/ 1 201 EAST PINE. S'rRF.E'r • SUI'IE 1000 • ORLANDO, FI. 32801 TELEPHONE (407) 839-3955 • FAX ( 407) 839-3790 PRINCIPALS: LWIES E. CFIR IS'I'OPIIFR • CII A RISS IX', DRAKE • GERALD C. IIAR'ITIAN • MARK I. I.F'KF. , MARK A. R)'NNING • IIAROI.1) F. S(.I Ii%I I D'I'. IR. No. Hours Hourly Rate TOTAL Principal (Hartman) 4.0 $90.00 $360.00 Principal (Schmidt) 5.0 $85.00 $425.00 Engineer V (Revoir) 2.0 $55.00 $110.00 Engineering Technician IV (Main) 6.0 $45.00 $270.00 Word Processor (Terrera) 0.5 $25.00 $12.50 Reproduction/Courier Support (Simon) 0.5 $15.00 $7.50 Subtotal $1,185.00 B. OTHER DIRECT COSTS $0.00 ^.8:bi'�P<N:CSS%:q`:iiC•n:.r::p:«�:+n:<n::�<:.�:.,:.;<o.<::.a..«:.<::.,..; AMquNr uu� tyls rlv�t�►c� .°,�r; . ..... •No o�<+ke +%a �%E',¢�,opo� L>o Sa'N;+y::�E � � i a n {�y yy CONT ioa:', RECAP Up -Set Limit Amount Previously Billed Current Billing Total Billed To Date Amount Remaining $10,779.71 $1,185.00 $19,400.00 $11,964.71 $7,435.29 �7 p��s—�. (/ 1 201 EAST PINE. S'rRF.E'r • SUI'IE 1000 • ORLANDO, FI. 32801 TELEPHONE (407) 839-3955 • FAX ( 407) 839-3790 PRINCIPALS: LWIES E. CFIR IS'I'OPIIFR • CII A RISS IX', DRAKE • GERALD C. IIAR'ITIAN • MARK I. I.F'KF. , MARK A. R)'NNING • IIAROI.1) F. S(.I Ii%I I D'I'. IR. City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 Confidential M E M O DATE: October 9, 1992 TO: Lonnie Powell, Mayor & Sebastian City Council FROM: Robert S. McClary (/ , RE: GDU Acquisition Enclosed is a letter from Hartman & Associates to General Development Utilities outlining the current status of the GDU Negotiations. This document is considered confidential under the Public Records Act which authorizes an exemption for the purchase of real estate. This becomes a public document once an option is exercised or negotiations are abandoned. I believe the letter provides an accurate assessment of the City's position with one exception. The exception would be in paragraph 3 considering mandatory connection of occupied homes. The City Council dialogue on mandatory connections to date has been to consider mandatory connections for new construction but not to require existing homes to connect unless there is an environmental or health problem. Should you need additional information or wish to discuss the status of negotiations or details of the offer please feel free to contact Gerry Hartman, Tom Cloud or myself. Gerald C. Hartman - 1-800-881-3955 Tom Cloud - 1-407-244-5624 /sg City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 o FAX (407) 589-5570 October 19, 1992 Thomas A. Cloud, Esq. Gray, Harris, Robinson, Kirschenbaum & Peeples Attorneys At Law P. O. Box 3068 Orlando, FLorida 32802 Re: Engagement for GDU Acquisition Dear Tom: This is to advise you that the Sebastian City Council, at its Regular Meeting of October 14, 1992, approved your engagement for professional and legal services for the acquisition of the GDU water and wastewater system. However, the City Council limited the authorization to this phase to $50,000. The limitation and fees was based, in part, by the fact that certain portions of the scope of services outlined in your October 9, 1992 letter, could be done by the City Attorney or others at a more cost effective rate to the City. Specifically, we believe that your services will be directed to items 1 and 5 of your letter for negotiations, preparation and consummation of the purchase and sale agreement and preparation of all necessary regulatory ordinances including rate ordinance, extension and sale policy ordinance, wastewater pretreatment ordinance and standard agreements. The City Attorney, or others, would be responsible for items 2, 3 and 4: issuer's counsel work for any bond issue, real estate closing work, and title insurance. We realize that it is difficult to accurately estimate the time involved in negotiations and bringing an agreement to consummation. While we wish to minimize legal and other expenses, we ask that you notify us if it appears your fees will approach or exceed the $50,000 budget. Thomas A. Cloud, Esq. October 19, 1992 Page #2 We look forward to working with you on this phase of the City's project to provide water and wastewater services to our community. Should you have questions or concerns, will you please call? Sincerely, Robert S. McClary City Manager RSM/jmt cc: Lonnie R. Powell, Mayor & Sebastian City Council Michael L. Hudkins, Finance Director Charles I. Nash, Esq. DLT -06-1992 16:10 FROM 5iQY1HARRIS&ROBINSON TO 914075895570 P.02 GRAY, RA -R sxs & Romxsox Orlando October 6, 1992 VIA FACSIXILE 407 589-5570 Robb McClary City Manager City of Sebastian P.O. Box 780127 Sebastian, Florida 32978 RE: Estimated Budget for Negotiation and Consummation of Purchase and Sale of GDU Water and Sewer System in Sebastian Dear Robb: As we discussed previously, I estimate it will take somewhere between $75,000 and $100,000 in legal fees in order to complete negotiations, final preparation of a Purchase and Sale Agreement, consummation of the transaction, and a closing of the sale of the GDU water and sewer system (assuming there is no litigation). This budget amount also includes title insurance for the system if the City has to incur such costs. It also includes the preparation of the necessary ordinances and rules for the utility system, which are of course prepared in conjunction with the rate study. If you need any further information regarding this matter, please don't hesitate to call on me. Sincerely PROCESSIONAL ASSOCIATION THOMAS C. SHAW J. CHARLES GRAY Thomas A. PAUL J. MOKRIS CORDON H. HARRIS ATTORNEYS AT LAW ALAN R. BUTTEOWORTH ..CH.RO M' ROBINSON PAUL S• CUINN. JR. PMILLIP R. FINCM DAVID L. SCHICK PAMCLA O. PRICE JACK K. MCMULL6N JAMES F. MOC.JR• SURE 1200 GLASS BANK OUILDING ORLANDO L. 6YORA WILLIAM A. BOYLCSSUSAN THOMAS A. CLOUD 201 EAST PING STRCCT 505 NORTH ORLANDO wNENU6 D. TASSCLL RICMARD C•BURKE GYRO P. MARSHALL.JR. POST OFFICE BOX SOBS MST OFFICE SOX 320757 LORI R. 99NTON J. MASON WILLIAMS. ER ANTHONY J. COTTER LEO P. ROCK. JR. OSLANaO. FL 88802-3082 COCOA B$AC.R.FL 82982-0761 TRACT A. BOROCRT G. ROOCRTSON OILG JOHN B. SHOEMAKCR CHARLES W. SCLLLISA JACK A. KIRBCH6NBAUM TELCOMONC (407) 943-6080 TELpHONE (OOT 70]4 CI8 J. FRANK MICMAC, K. WILSON JAMES W. PCMPLCl.M FAX (407) ]44.8690 FAX (AOT/ 783-2297 MARK S. WALKCR FORREST S. FIELDS. JR. LILA 1. M.HCNRY WRITCO' S OIREOT DIAL KCHT L. HIPP CATHERINE S. ROORIGUC2 MALCOLM R. KIRECMENBAUM OUY S. HAGGARD PL6A66 RCOLY i0] OF COUN3CL Orlando October 6, 1992 VIA FACSIXILE 407 589-5570 Robb McClary City Manager City of Sebastian P.O. Box 780127 Sebastian, Florida 32978 RE: Estimated Budget for Negotiation and Consummation of Purchase and Sale of GDU Water and Sewer System in Sebastian Dear Robb: As we discussed previously, I estimate it will take somewhere between $75,000 and $100,000 in legal fees in order to complete negotiations, final preparation of a Purchase and Sale Agreement, consummation of the transaction, and a closing of the sale of the GDU water and sewer system (assuming there is no litigation). This budget amount also includes title insurance for the system if the City has to incur such costs. It also includes the preparation of the necessary ordinances and rules for the utility system, which are of course prepared in conjunction with the rate study. If you need any further information regarding this matter, please don't hesitate to call on me. Sincerely your Thomas A. Clou GRAY, HARRIS, RIRSCHENBAUM 5 TAC: jlm P.A. 9,2.,27� TOTAL P.02 .-, City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 October 8, 1992 Via Fax Thomas A. Cloud, Esq. Gray, Harris, & Robinson, P.A 201 East Pine Street P.O. Box 3068 Orlando, FL 32802 Re: GDU Negotiations Dear Tom: Thank you for your proposal outlining an estimate of fees for legal work for the acquisition of the General Development Utilities System in Sebastian. I have placed your letter on the Regular City Council Agenda of October 14, 1992 for City Council approval. However, the estimated legal expense of of $75,000 to $100,000 appears high and is more than the combined legal expenses to date for the "unbuckling" agreements with the County, the initial feasibility study, and the other work you have done for us. Therefore, will you please provide the details and basis you used to develop this estimate? I believe the City Council will need this information prior to its meeting of October 14, 1992 in order to make a well informed decision. Consequently, I ask ,you to fax your response to me at your earliest convenience so that I may forward the information to the City Council. Thank you in advance for your consideration and response to this request. sincerely, Robert S. McClary City Manager RSM/jmt cc: Lonnie R. Powell, Mayor & Sebastian City Council OCT -09-1992 12:03 FROM GRRY,HRRRISBROBINSON TO 914075895570 P.02 J. CHARLES GRAY CORDONM. HARRIS RICHARD M. ROBINSON PHILLIP 4. FINCH PAMELA O. PRICC JAMES P. PAOC, JR. WILLIAM A. BCOVLES TMOMAS A. LOVO BYRD F. MARSHALL. JR. J. NA30N WILLIAMS, EL LEO M ROCK.JR. G. R08CRTSON OILG CHARLES W.SCLL JACK A. KIRSCMCNBAUM JAMES W. PEEPLCG= FORREST S. FIELDS, JR. GaAx, HaaBls, R BINsox, KIRSCHENBAUM & PEEPLES ATTORNEYS AT LAW GLASS BANK BUILDING SUITE I=O,O 906 NORTH ORLANDO AVCHUO -[OI "BY PINE STREET POST OFFICE BOK 350737 POST OFFICE BOX 3068 COCOA Baeca, FL 38932-0767 ORLA 110, FL 32809-3068 TELEPNONC FLO7! 783 -GEIS TELEPHONE (4OY) 6A3.8880 FAX (407) 7033-2297 FAX (.071 2.+-6680 WRITER'S DIRECT DIAL PLEASE RCPLY TO. Orlando October 9, 1992 Robb McClary City Manager City of Sebastian 1225 Main Street Sebastian, Florida 32958 RS: =U Water and Sewer System Acquisition Dear Robb: TNOMA3 C. SHAW MUL J. MORRIS ALAN R. BUTTCRWORTH PAUL S. QUI N N. JR. DAVID 4.3CHICK JACK K. MCM V LLC. ORLANDO L. EVORA SUSAN O.TASSCLL RICMARO E. BURKE LORI R. BCNTON ANTHONY J. COTTER TRACT A. RORCCRT JOHN 6. SHOEMAKER LISA J. FRANK MICHAEL K. WILSON MARK S. WALKER LILA 1. MPMCMRY RENT L. NIPP CATHERINE B. RODRIGUEZ MALCOLM R. KIRSCMCNBAUM GUY S. HAGGARD OF COUNSEL VIA FACSIMILE 407/589-557_0 I am responding to your letter dated October 8, 1992, regarding our proposal. There are five major tasks which are included in that proposal as follows: 1. Negotiation, preparation and consummation of purchase and sale agreement; `2. Issuer's counsel work for any bond issue; 3. Real estate closing work, including preparation of all necessary documents to consummate the transaction; 4. Issuance of title insurance policy plus title research work; and S. Preparation of all necessary regulatory ordinances including rate ordinance, extension and sale policy ordinance, wastewater pretreatment ordinance and standard agreements. I can tell you from experience that it is impossible to accurately estimate the amount of time that will be involved in bringing this deal to fruition. While Gerry and I both believe that GDU wants to negotiate, completion of the purchase and sale agreements for water and sewer systems historically show a number of periods where the 9-C)?y ul.l-YJJ-IJ7G LG•U'..J rmull urvn ,nn14C10GMUO1 V=UY u 714U(Z>M7D.7 f10 11.173 C9'itAY, �ARIiIS, 1ZOBL�750R, xIR6C$E:7BAL7M Se PBEPLEs Robb McClary October 9, 1992 Page 2 agreement is "on again, off again." Preparing for and consummating the closing in all of the documents necessary for the real estate portion of the agreement can also be quite lengthy and differ significantly from normal real estate transactions. Should a bond issue be done, legal review will have to take place of the engineer's report, the official statement, and other bond documents. We estimate that title insurance for this system will be approximately $10,000. Finally, there are a number of ordinances which will need to be prepared in conjunction with the rate study in order to set up the proper regulatory framework. I am hopeful that we can accomplish all this for less than the estimated expense that I have given you. Nevertheless, I also perceive that the Council is not interested in having its acquisition team going back for more money after we get started in this process. I believe that the number I have given you is a reasonable estimate given the uncertainties of this transaction but also covers a significant amount of work. I will do everything I can to come in under the estimate but my professional judgment is that the estimate is reasonable. If you have any questions regarding this matter, don't hesitate to call on me. Sincerely yours, homas oud, quire TAC:jlm GRAY, HARRIS, ROBINSON, KIRSCBENBAUM & PEEPLES, P.A. signed for ur. cloud in hia absenco to prevent delay. TOTAL P.92 • GRAY, HARRIS & ROBINSON PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW SUITE 1200 SOUTHEAST NATIONAL BANK BUILDING 201 EAST PINE STREET POST OFFICE BOX 3068 ORLANDO, FLORIDA 82802 TELEPHONE 14071 643-8860 City of Sebastian Robb McClary - City Hall File # P.O. Box 780127 Sebastian, FL 32978 Statement # 177619 For Professional Services Rendered: Re: Water and Sewer Matters Professional Services: SEPT 01 92 GHH Review letter to Tom Cloud to Robb McClary re: amendments to Utility Ordinance and proposed amendments attached thereto SEPT 02 92 TAC Conferring by phone with Robb McClary (2x); redrafting ordinance; preparing correspondence to McClary SEPT 22 92 TAC Conferring by phone with Robb McClary; preparing ordinance posters; conferring with Gerry Hartman on hearing SEPT 23 92 TAC Traveling to/from Sebastian; preparing for and meeting with all five City Council members; preparing for and appearing at City Council hearing on Ordinance SEPT 23 92 MMD Preparing posters for meeting SEPT 24 92 GHH Report from Tom Cloud SEPT 28 92 TAC Preparing 2 separate drafts of Purchase contracts SEPT 28 92 MMD Proofing document for Tom Cloud Harris, Gordon H. .40 175.00 Cloud, Thomas A. 17.60 175.00 DeLancett, Mary M. 2.10 75.00 Current Fees: Cost Advances: OCTOBER 28 1992 40107- 1 .20 .60 1.00 12.00 .60 .20 4.00 1.50 70.00 3,080.00 157.50 3,307.50 AUG 31 92 Long Distance Calls .60 AUG 31 92 Express Mail 13.00 SEPT 01 92 Document Production 107.50 SEPT 02 92 Document -Production 2.00 SEPT 02 92 Document Production 160.00 SEPT 02 92 Long Distance Calls 3.69 SEPT 02 92 Long Distance Calls .41 SEPT 02 92 Long Distance Calls .60 SEPT 02 92 Long Distance Calls .41 SEPT 02 92 Telecopier/Long Distance 20.00 Continued RETURN WITH PAYMENT * GRAY, HARRIS & ROBINSON PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW SUITE 1200 SOUTHEAST NATIONAL BANK BUILDING 201 EAST PINE STREET POST OFFICE BOX 3068 ORLANDO, FLORIDA 32802 TELEPHONE (407) 843-8880 City of Sebastian Robb McClary - City Hall P.O. Box 780127 Sebastian, FL 32978 File # SEPT 13 92 Reproduction Cost SEPT 15 92 Document -Production SEPT 22 92 Document -Production SEPT 23 92 Telecopier/Local SEPT 23 92 Long Distance Calls SEPT 24 92 Reproduction Cost SEPT 28 92 Mileage Thomas A. Cloud SEPT 28 92 Document Production SEPT 28 92 Document Production SEPT 30 92 Reproduction Cost Current Cost Advances: Current Fees and Cost Advances: TO INSURE PROPER CREDIT TO THE ABOVE ACCOUNT PLEASE RETURN A COPY WITH REMITTANCE D U E U P O N R E C E I P T 0077 RETURN WITH PAYMENT OCTOBER 28 1992 40107- 1 42.30 8.00 1.80 39.00 1.56 19.20 40.00 42.50 2.50 38.40 543.47 $3,850.97 GRAY, HARRIS & ROBINSON PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW SUITE 1200 SOUTHEAST NATIONAL BANK BUILDING 201 EAST PINE STREET POST OFFICE BOX 3068 ORLANDO, FLORIDA 62802 TELEPHONE 14071 643-8680 City of Sebastian Robb McClary - City Hall P.O. Box 780127 Sebastian, FL 32978 Statement # 178813 For Professional Services Rendered: Re: Water and Sewer Matters Professional Services: a File # OCT OE 92 GHH Conference with Tom Cloud re: status OCT 06 92 TAC Conferring by phone with Robb McClary; preparing correspondence to Robb McClary OCT 07 92 GHH Work on closing issues OCT 08 92 GHH Review memo from Tom Cloud re: call from Gerry Hartman OCT 08 92 TAC Reviewing correspondence from Robb McClary; preparing correspondence to Robb McClary Harris, Gordon H. 1.60 175.00 Cloud, Thomas A. 1.00 175.00 Current Fees: Cost Advances: NOVEMBER 11 1992 40107- 1 .40 .50 1.00 .20 .50 280.00 175.00 455.00 OCT 01 92 Poster Charges 100.00 OCT 06 92 Document -Production 2.00 OCT 06 92 Long Distance Calls 84 OCT 09 92 Telecopier/Long Distance 15.00 !I OCT 09 92 Document -Production 4.00 OCT 12 92 Telecopier/Local 6.00 OCT 12 92 Reproduction Cost 61.20 OCT 16 92 Long Distance Calls .84 OCT 29 92 Document -Production 2.00 Current Cost Advances: 191.88 TOTAL CURRENT BALANCE DUE: $646.88 TO INSURE PROPER CREDIT TO THE ABOVE ACCOUNT PLEASE RETURN A COPY WITH REMITTANCE DUE UPON RECEIPT 0077 RETURN WITH PAYMENT GRAY, HARRIS & ROBINSON PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW SUITE 1200 201 EAST PINE STREET POST OFFICE 80X 3068 ORLANDO, FLORIDA 02802 TELEPHONE 14071 843-8880 City of Sebastian MARCH 16 1993 Robb McClary - City Hall File # 40107- 1 P.O. Box 780127 Sebastian, FL 32978 Statement # 194510 For Professional Services Rendered: Re: Water and Sewer Matters Professional Services: FEB 08 93 WAB Preparing Response to Audit Letter FEB 08 93 TAC Reviewing correspondence from G. Hartman FEB 15 93 WAB Preparing Response to Audit Letter Boyles, William A. 2.00 175.00 Cloud, Thomas A. .30 175.00 Current Fees: Cost Advances: FEB 12 93 Document -Production FEB 15 93 Reproduction Cost 292 copies @ .11 Current Cost Advances: Current Fees and -Cost Advances: TO INSURE PROPER CREDIT TO THE ABOVE ACCOUNT PLEASE RETURN A COPY WITH REMITTANCE D U E U P O N R E C E I P T 0077 RETURN WITH PAYMENT 1.00 .30 1.00 350.00 52.50 402.50 GRAY, HARRIS & ROBINSON PROFESSIONAL ASSOCIATION r ATTORNEYS AT LAW SUITE 1200 SOUTHEAST NATIONAL BANK BUILDING 201 EAST PINE STREET POST OFFICE BOX 3068 ORLANDO, FLORIDA 32802 TELEPHONE (4071 843-0880 City of Sebastian APRIL 08 1993 Robb McClary - City Hall File # 40107- 1 P.O. Box 780127 Sebastian, FL 32978 Statement # 197112 For Professional Services Rendered: Re: Water and Sewer Matters Professional Services: MAR 03 93 TAC Meeting with new utilities director, 1.50 Robb McClary, and Gerry Hartman MAR 04 93 TAC Conferring by phonemail with with Gordon 1.00 Harris and Bob Dilg on assignments; conferring by phonemail with Lila McHenry on legal research assignment; preparing correspondence to Mr. McClary and Charles Nash MAR 08 93 GHH Status report from Tom Cloud .20 MAR 08 93 LIM Reviewing Franchise Agreements; 5.60 reviewing Chapter 180, Florida Statutes and Utility Ordinance; researching points of law re: Chapter 180 MAR 09 93 LIM Conferring by phonemail with Thomas A. 4.00 Cloud; conferring in office with Thomas A. Cloud; preparing analysis of alternatives; MAR 09 93 LIM Conferring by phone with Gerry Hartman's office re: GDU MAR 10 93 LIM Reviewing Sebastian Interlocal 2.00 Agreements; researching points of law _ re: valuation methods; reviewing correspondence to GDU from Gerry Hartman; preparing memorandum MAR 11 93 LIM Conferring by phone with Gerry Hartman; 3.00 conferring by phonemail with Thomas A. Cloud; preparing memorandum MAR 12 93 LIM Conferring by phonemail with Thomas A. 2.00 Cloud; reviewing Chapter 73 Florida Statutes re: condemnation MAR 13 93 GHH Review letter from Gerry Hartman to GDU 1.00 and review franchise KAR 15 93 LIM Conferring by phone with Gerry Kansella; 1.40 preparing memorandum to Thomas A. Cloud; reviewing correspondence from Gerry Hartman; conferring by phonemail with Thomas A. Cloud (2x) Continued RETURN WITH PAYMENT GRAY, HARRIS 8C ROBINSON City of Sebastian Robb McClary - City Hall P.O. Box 780127 Sebastian, FL 32978 PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW SUITE 1200 SOUTHEAST NATIONAL BANK BUILDING 201 EAST PINE STREET POST OFFICE BOX 3068 ORLANDD, FLORIDA 32802 TELEPHONE (407) 843-8880 APRIL 08 1993 File # 40107- 1 MAR 18 93 TAC Conferring by phone with R. Votapka .40 MAR 19 93 LIM Reviewing condemnation law .60 MAR 21 93 GHH Phonemail message from Tom Cloud re: .20 acquisition and refusing to negotiate by Sebastian MAR 21 93 TAC Reviewing and circulated news article on .70 acquisition; reviewed legal memorandum from L. McHenry MAR 22 93 LIM Conferring in office with Thomas A. .70 Cloud; conferring by phonemail with Thomas A. Cloud; reviewing case law MAR 23 93 GHH Review letter from GDU to Gerald Hartman .20 AR 23 93 LIM Reviewing notes from Thomas A. Cloud; .50 conferring by phonemail with Thomas A. Cloud; conferring in office with Thomas A. Cloud MAR 24 93 LIM Reviewing memorandum from Gerry Hartman; 1.40 reviewing memorandum from Thomas A. Cloud; conferring by phonemail with Thomas A. Cloud re: phone calls to several individuals; MAR 24 93 LIM Conferring by phone with Rich Votapka; preparing memorandum to Thomas A. Cloud; reviewing fax from Rich Votapka MAR 25 93 LIM Conferring by phonemail with Tom Cloud .20 re: telephone calls to various past GDU and City officials re: franchise agreements MAR 26 93 TAC Conferring with Rick Votapka .40 MAR 26 93 LIM Conferring in office with Thomas A. .30 Cloud and Rich Votapka MAR 29 93 LIM Conferring in office with Thomas A. .20 Cloud re: tapes and transcripts Harris, Gordon H. 1.60 383.75 614.00 Cloud, Thomas A. 4.00 229.50 918.00 McHenry, Lila I. 21.90 149.79 3,280.50 Current Fees: 4,812.50 .ost Advances: MAR 04 93 Document -Production 4.00 MAR 12 93 Document -Production 4.00 Continued RETURN WITH PAYMENT } GRAY, HARRIS & ROBINSON PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW SUITE 1200 SOUTHEAST NATIONAL BANK BUILDING 201 EAST PINE STREET POST OFFICE BOX 3068 ORLANDO, FLORIDA 3280E TELEPHONE 1407) 643-8880 City of Sebastian Robb McClary - City Hall P.O. Box 780127 Sebastian, FL 32978 File # MAR 15 93 Postage and Handling MAR 15 93 Reproduction Cost 186 copies @ .11 MAR 15 93 Long Distance Calls MAR 15 93 Lexis/Westlaw Research KR/Research MAR 18 93 Long Distance Calls MAR 22.93 Document -Production MAR 24 93 Long Distance Calls MAR 25 93 Telecopier/Local MAR 31 93 Telecopier/Local MAR 31 93 Reproduction Cost 4 copies @ .11 Current Cost Advances: TOTAL CURRENT BALANCE DUE: TO INSURE PROPER CREDIT TO THE ABOVE ACCOUNT PLEASE RETURN A COPY WITH REMITTANCE D U E U P 0 N R E C E I P T 0077 RETURN WITH PAYMENT } APRIL 08 1993 40107- 1 1.09 20.46 1.61 13.13 3.48 2.00 .96 30.00 6.00 .44 87.17 $4,899.67 GRAY, HARRIS & ROBINSON PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW SUITE 1200 201 EAST PINE STREET POST OFFICE 80% 3068 ORLANDO, FLORIDA 02802 TELEPHONE (407) 843-8880 City of Sebastian Robb McClary - City Hall P.O. Box 780127 Sebastian, FL 32978 contract Cloud, Thomas A. McHenry, Lila I. Cost Advances: File # 8.70 175.00 27.00 175.00 Current Fees: . MAR 02 93 Document -Production MAR 04 93 Document -Production MAR 09 93 Document -Production APR 04 93 Lexis/Westlaw Research APR 05 93 Document Production APR 06 93 Long Distance,Calls APR 06 93 Document Production APR 06 93 Express Mail APR 07 93 Long Distance Calls APR 07 93 Document Production APR 08 93 Long Distance Calls APR 12 93 Document Production APR 12 93 Document Production APR 12 93 Document -Production APR 15 93 Postage and Handling APR 15 93 Document Production APR 15 93 Reproduction Cost 321 copies @ .11 APR 15 93 Express Mail' TAC/Cty Sebastia APR 16 93 Document -Production APR -19 93 Long Distance Calls APR 19 93 Document -Production APR 20 93 Long Distance Calls APR 20 93 Document Production APR 20 93 Document -Production APR 22 93 Long Distance Calls APR 25 93 Postage and Handling APR 25 93 Reproduction Cost APR 25 93 Reproduction Cost 50 copies @ .11 APR 26 93 Telecopier/Local APR 26 93 Telecopier/Local APR 26 93 Telecopier/Local RETURN WITH PAYMENT MAY 20 1993 40107- 1 1,522.50 4,725.00 6,247.50 18.00 16.00 4.00 6.64 50.00 1.11 17.50 13.75 .60 12.50 3.48 35.00 7.50 8.00' .65 12.50 35.31 13.75 10.00 .36 6.00 .36 42.50 24.00 5.40 2.45 15.00 5.50 12.00 12.00 6.00 Continued GRAY, HARRIS & ROBINSON PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW SUITE 1200 201 EAST PINE STREET POST OFFICE BOX 3068 ORLANDO, FLORIDA 32802 TELEPHONE (407) 843-8880 City of Sebastian Robb McClary - City Hall P.O. Box 780127 Sebastian, FL 32978 Statement # 202809 For Professional Services Rendered: Re: Water and Sewer Matters Professional Services: File # APR 04 93 LIM .Reviewing documents and tapes re: GDU 4.00 franchise and rate increases APR 05 93 LIM Preparing memorandum 4.50 APR 06 93 LIM Conferring by phone with Dan Kilbride; 4.10 conferring by phone with Pat Flood's office; preparing correspondence; revising memorandum APR 07 93 LIM Conferring by phone with Pat Flood; 3.20 preparing memorandum to file; preparing memorandum to Thomas A. Cloud; conferring by phone with Rich Votapka APR 08 93 TAC Reviewing legal memo; began draft of 1.00 letter APR 08 93 LIM Reviewing notes from Thomas A. Cloud; 5.00 researching points of law re: strict construction and utility valuation APR 09 93 LIM Conferring in office with Thomas A. 5.10 Cloud; preparing memorandum; r- esearching points of law re: declaratory actions APR 12 93 LIM Reviewing correspondence 1.10 APR 14 93 TAC Conferring by phonemail with Gerry .50 Hartman APR 15 93 TAC. Reviewing letter to Robb McClary 1.00 APR 16 93 TAC Conferring by phone with Gerald Hartman .50 (2x) on proposed negotiations APR 18 93 TAC Conferring by phone with Gerald Hartman .50 on Purchase and Sale Contract with GDU APR 19 93 TAC Reviewing various correspondence from 1.20 Hartman; conferring by phone with Robb McClary APR 20 93 TAC Redrafting Agreement with GDU; preparing 2.00 correspondence to Robb McClary APR 22 93 TAC Meeting with G. Hartman on contract; 1.00 conferring by phone with Rick Votapka and Robb McClary APR 23 93 TAC Working with G. Hartman on exhibits for 1.00 RETURN WITH PAYMENT MAY 20 1993 40107- 1 Continued GRAY, HARRIS & RoBINSON PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW SUITE 1200 201 EAST PINE STREET POST OFFICE BOX 3066 ORLANDO, FLORIDA 82802 TELEPHONE (407) 643-8680 City of Sebastian Robb McClary - City Hall P.O. Box 780127 Sebastian, FL 32978 0077 File # Current Cost Advances: TOTAL CURRENT BALANCE DUE: TO INSURE PROPER CREDIT TO THE ABOVE ACCOUNT PLEASE RETURN A COPY WITH REMITTANCE D U E U P 0 N R E C E I P T RETURN WITH PAYMENT MAY 20 1993 40107- 1 397.86 $6,645.36 _ GRAY, HARRIS Be ROBINSON PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW SUITE 1200 201 EAST PINE STREET POST OFFICE. BOX 3068 ORLANDO, FLORIDA 92802 TELEPHONE (407) 843-8880 City of Sebastian Robb McClary - City Hall P.O. Box 780127 Sebastian, FL 32978 Statement # 205014 File # JUNE 14 1993 40107- 1 For Professional Services Rendered: Re: Water and Sewer Matters Professional Services: MAY 14 93 TAC Conferring by phone with Charles Nash; 2.30 reviewing letter from GDU; conferring by phone with Robb McClary; conferring by phone with G. Hartman MAY 21 93 TAC Conferring by phone with Rich Votapka; .50 conferring by phone with Chuck Bliss MAY 26 93 TAC Conferring by phonemail with G. Hartman; .50 conferring by phone with C. Bliss; conferring by phone with Robb McClary Cloud, Thomas A. 3.30 175.00 577.50 - Current Fees: 577.50 Cost Advances: / MAY 12'93 Document-ProductionC 22.00 MAY 12 93 Document -Production Z-5 14.00 MAY 13 93 lam/ Telecopier/Local 9.00 MAY 13 93 Long Distance Calls y� Q .60 MAY 14 93 Reproduction Cost ,/�3 13.80 MAY 14 93 Long Distance Calls Fund # =�� 7.69 MAY 14 93 Long Distance Calls G .60 MAY 14 93 Long Distance Calls Acct. #c 3.48 MAY 17 93 Long Distance Calls Object: .41 MAY 18 93 Long Distance Calls q5 2.67 Thomas A. Cloud Amt.: MAY 18 93 Long Distance Calls pate; 3.49 MAY 18 93 Long Distance Calls tnitia6 .41 MAY 26 93 Document -Production 52.00 MAY 27 93 Document -Production 16.00 MAY 28 93 Telecopier/Local 6.00 MAY 31 93 Reproduction Cost 54.30 Current Cost Advances: 206.45 TO INSURE TOTAL CURRENT BALANCE DUE- PROPER CREDIT TO THE ABOVE ACCOYNT / (. PLEASE RETURN A COPY WITH REMITTANCE 4C`53 Continued 7• RETURN WITH PAYMENT HART" AN & ASSOCIATES, I : C. engineers, hydrogeologists, surveyors & management consultants December 10, 1992 HAI X192-023.04 Mr. J. Larry Rutherford General Development Utilities, Inc. 2601 South Bayshore Drive Miami, Florida 33133-5461 Subject: Sebastian Highlands Water and Wastewater Systems ^ Dear Mr. Ruth ord: 61 Now that both the North Port and Palm Bay systems have been closed or are pending closing, I would appreciate the opportunity to renew our discussions relative to the Sebastian Highlands water and wastewater system. If I am not mistaken, the posture that we are at is for a counter offer from General Development Utilities, Inc., or acceptance of our last offer to you. As we previously have discussed, I believe that this transaction can be done in a rapid and cost-effective manner for both parties without the need of any litigation, and in fact, we probably could have much of the documentation and other aspects of the deal completed before incurring too much legal expense. I would appreciate your response in this matter. GCH/ch C16/Ruther.gch cc: Rob McClary, City of Sebastian Hal Schmidt, Jr., P.E., HAI Very truly yours, Hartman & Associates, Inc. Ze��artman, Pd'? President ..r 201 EAST PINE STREET • SUITE 1000 • ORLANDO. FL 32801 TELEPHONE (307) 8393955 • FAx (40-) 8393790 PRINCIPALS: JAMES E. CHRISTOPHER - CHARLES W. DRAKE - GERALD C. HARTMAN -NARK I. LCKE -.NARK A. RYNNING - HAROLD F.. SCHMIDT, JR.