HomeMy WebLinkAbout1990 01 15 - Park Place Surcharge• UT1fINHSURCH.HEA):cew
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INDIAN RIVER COUNTY
DEPARTMENT OF UTILITY SERVICES
INTER -OFFICE MEMORANDUM
DATE: JANUARY 25, 1990
TO: ED FRY
FINANCE DIRECTOR
THRU: TERRANCE G. PINTO
DIRECTOR OF UTILI Y ERVICES
FROM: HARRY E. ASHER
ASSISTANT DIRECTOR OF UTILITY SERVICES
SUBJECT: PAYMENT OF SURCHARGE COLLECTED - NELSON HYATT
Please prepare a check, payable to Nelson Hyatt, in the amount of
$4,510.00, which represents surcharge amounts collected August 1989
through December 1989 in Account No. 471-000-202-014.00.
Please return the check to the Utilities Department for processing.
HEA:cew
i
When a person is arrested by the police, the person is read his rights, if not, when in court
the case is dismissed by the Judge!
Well here I go back on June 2, 1989, Mr. James E. Chandler (County Administrator)
received 6 pages from book 77 pages 287 thru 292 titled "PUBLIC HEARING - PURCHASE
OF LAKE DELORES UTILITIES".
The hour of 9:05 o'clock A.M. having passed, the Deputy Clerk read the following notice
with proof of publication attached, to wit:
I charge that the publication which was published June 9 & 16 1989 was illegal because the
description was not correct as to the legality of the public notice. On page 288 it reads as follows:
"SUBJECT: ACQUISITION OF NELSON HYATT WATER AND SEWER UTII.ITIES
SERVING PARK PLACE MOBILE HOME PARK
(FORMERLY LAKE DELORES UTILITY SYSTEM)"
If on June 9 & 16 1989 the public notice described the wrong name in the newspaper and
no objection was voicedjt was because of the manipulation of describing the wrong place! It
should be nulled and voided, thrown out. Someone knew what they were doing to eliminate the
opposition!
Chairman Wheeler opened the public hearing and asked if anyone wished to be heard in
this matter. There was no one probably because Park Place residents did not recognize the name
"LAKE DOLORES UTIL Y SYSTEM" which was used in the published June 9 & 16 notice;
and, referenced as the former name of the "NELSON HYATT WATER AND SEWER
SYSTEM" in the June 2, 1989 memo to Mr. Chandler (Reference Book 77 Pages 287 & 288)!
Who defends the defenseless? When this more or less two or three named public notice
was in the record books of #77 and pages 287 thru 292, there were 80 residents who were not told
that they were victimized. Now there are 200 residents or victims of an illegal public notice each
paying a $10 monthly surcharge. Some have been paying this surcharge for almost five years
(nearly $600). I have been paying it, so far, for twenty-eight months. I am tired of it and so are a
lot of others!
Who ever heard of a franchise fee, a utility tax of 10% for the amount of water not to
exceed $2.50. Water seems to be a luxury instead of a necessity for lifel
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BOARD OF COUNTY COMMISSIONERS
1,490 25th Street, Vero Reach, Florida 32960
Telephone: (407) 567-8000
January 12, 1993
TO WHOM IT MAY CONCERNS
Re: County policy on paying water and Bower Impact f
mobile home units connecting to County utilities
Dear Mobile Home Park Resident:
Suncom Telephone: 224-1011
At a public hearing called by the County commission recently to discuss
matters of public interest relating to the County utility system it became
evident that there in a misunderstanding of the County policy concerning who
pays water and sewer impact fees on the connection of any mobile home unit to
the County utility system.
Several residents indicated that the park owners were demanding payment of
impact fees at the time a living unit was transferred to a new owner and
would not issue a park certificate of occupancy or a new lease agreement,
/saying that this payment by the new owner was required by the County.
The County policy has consistently been to require payment of the impact fees
from the park owner, since the park owner is the property owner. While the
numerous contracts between the County and mobile home park owners negotiated
over the last 20 years are not identical, a common term of many of the new
agreements is that at the time of sale of a home in a park the park owner
must pay the County the current impact fee. Whether the park owner could
pass that charge through to the new home owner has never been determined by
the County Commission. That is subject to Chapter 723, Florida Statutes, and
is strictly a matter of law and contract between the park owner and the home
owner.
In summary, the County's position is that
the County utility system the park owner
fee or make arrangements to pay it, and
pass that charge through to the home owns
by those two parties.
Sincerely,
BOARD OF COUNTY COMMISSIONERS
Richard N. Bird
Chairman
RNB/Vk
on the connection of any unit to
must either pay the current impact
whether the park owner is able to
r
in a matter which must be settled
s. WARRANTY OF TITLE; HOLD HARMLESS: SELLER
shall warrant title to all the real and personal property in
SYSTEM and shall hold the COUNTY harmless from any and all
claims for damages from third parties, and In particular for
any claims from LAKE DELORES UTILITIES AND CABLE TELEVISION
SYSTEMS,. INC.
-� 6. IMPACT FEES: After five years from the date
of this agreement SELLER shall be obligated to pay Impact
fees to the COUNTY, at the rate then current, for each unit
�. which thereafter requires a Certificate of Occupancy. Units
which have had a Certificate of Occupancy Issued to them
before five years from the date of this agreement must have
an Impact fee paid when that unit is resold, without regard
to the five-year SELLER's grace period. At closings on such
sales, SELLER or successor In title shall collect the Impact
fee and remit It to COUNTY.
7. SURCHARGE ON RATES: COUNTY shall establish a
surcharge on water and wastewater rates for customers In the
service area as shown on Exhibit "D." The surcharge shall
be collected by the COUNTY for ten years only or until
$777,000.00 has been paid, whichever comes first, and funds
so collected shall be remitted quarterly to SELLER. SELLER
agrees that the funds so remitted shall be full satisfaction
for SELLER's right to be reimbursed for Its equity In the
SYSTEM. The COUNTY surcharge shall be $10 per ERU
(equivalent residential unit).
8. CLOSING DATE: The closing shall take place on
or before August I, 1989.
IN WITNESS WHEREOF, the parties hereto have set
their hands and seals on the date first set forth above.
Attest
e y ari
Cler t
0
BOARD OF COUNTY COMMISSIONERS
INDIAN
RIVER COUN�TY,� FLORIDA
By
ary(jC. Wheeler
Chai man
(SEAL)
hea�ib"Ca I A"amed
d•"mn �C 5-30-61
CZESPOUs� Zo
1\'t71�GN� LpT%rQ.
FdP'iZ�e'o
CA or- Fk
G6v
8121"1
City of Sebastian
POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570
M E M O R A N D U M
DATE: April 20, 1993
TO Robb McClary, City Manager
FROM: Richard B. Votapka, Utilities Director
RE Park Place Surcharge on Water Bills
There are currently 164 customers on the Park Place Water System as
shown on the Indian River County billing statement. By virtue of
the Interlocal Utilities Agreement between Indian River County and
the City of Sebastian, all customers pay a monthly $10 surcharge on
their water/sewer bill. This charge amounts to $1,640 per month or
$19,680 per year which is payable to Mr. Nelson Hyatt, the owner of
Park Place.
The County Take -Over Agreement consummated with Nelson Hyatt was
dated July 11, 1989. Article 7 of the agreement state that "The
surcharge shall be collected by the County for ten (10) years only
or until $777,000 has been paid, whichever comes first, and funds
so collected shall be remitted quarterly to seller .... the surcharge
shall be $10 per ERU." "The closing shall take place on or before
August 1, 1989." To the best of his knowledge, Harry Asher,
Assistant, Indian River County Utilities Director said the County
started billing the customers on September 1, 1989. The last bill
to include the surcharge would therefore be September 1, 1999.
Based on this information, there would be six (6) years and four
(4) months (76 months) of surcharge billing remaining from May 1,
1993 to September 1, 1999. Total surcharges at the present
customer base for the next 76 months would be $124,640.
Page 2
Memorandum to
Robb McClary
April 20, 1993
Jeanette Dale, secretary for Nelson Hyatt, gave me the following
information regarding customer connections on a yearly basis:
YEAR NO. OF CONNECTIONS
1986
12
1987
20
1988
25
1989
27
1990
34
1991
20
1992
14
1993
9
TOTAL
161
Clubhouse
1
Total 162
(from Jan. to April)
There is a discrepancy of two connections between the County's
records and those of Park Place. Regardless, the number of
connections on a yearly basis from 1991 to the present seems to be
on the decline. I would imagine that the decline is certainly
reflected by the overall economy. Assuming that growth will
increase over the next six years, possibly an estimated growth
would increase by 4 mobile homes each year above the preceding
year. Therefore, a projected number of connections would be as
follows:
Per Year
Total
Surcharge Per Year
Based
on Avg. Connections
1993
18
182
173 x
$120/year=$
20,760
1994
22
204
193 x
$120/year=
23,160
1995
26
230
217 x
$120/year=
26,040
1996
30
260
245 x
$120/year=
29,400
1997
34
294
277 x
$120/year=
33,240
1998
38
332
313 x
$120/year=
37,560
1999
42
374
353 x
$120/year=
42,360
TOTAL
SURCHARGE $212,520
Over
76 months
Page Two of Three
Minutes of April 28, 1993 Meeting
Re: Park Place
City of Sebastian
POST OFFICE BOX 780127 o SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570
DATES April 28, 1993
FROM: Rich Votapka, Utilities Director
TO : Robb McClary, City Manager
RE Minutes of a meeting between Nelson Hyatt, owner, and Mike
Cairns of Park Place and Robb McClary, City Manager.
Robb McClary said that there are two (2) items which are
frustrating to the residents of Park Place:
1) Impact Fees
2) A Surcharge of $10.00 per month
The City of Sebastian needs to tie in rates with GDU eventually,
since the City hopes to acquire the GDU system by midsummer. The
City currently has a handshake deal with GDU, and would like to
work an agreement with Nelson Hyatt, whether in a cash payment or
cash and futures.
Robb McClary's thinking is that Nelson Hyatt has to deal with the
County in regard to sewer. However, concerning the water, the City
will offer a dollar amount to buy out Nelson in cash in order to
have uniformity in rates and eliminate the surcharge after
acquisition of GDU's systems. Robb foresees the original capital
investment will create a debt that will have to be paid by rates
and expansion by those benefitting. All new expansion will have to
be paid by new customers through impact fees.
Robb McClary reiterated that the two most important issues to
discuss now from the City's standpoint and that of Nelson Hyatt's
are as follows:
1) Impact Fees and 5 Year Grace Period until July 11,1994.
2) The $10.00 per month surcharge on every customer's bill.
Whatever the City does will hinge on GDU. New customers at Park
Place will have to pay sewer impact fees to Indian Riyer County and
water impact fees to the City. The City wants to sever the tie to
the Indian River County sewer system by installing its own force
main to the present Indian River County lift station. The City can
offer a "no impact fee" accord to existing residents when the City
takes over the sewer system.
Page Two of Three
Minutes of April 28, 1993 fleeting
Res Park Place
Park Place currently has 164 customers. At $10/month surcharge,
the total yearly amount is approximately $19,000 per year. it will
net Nelson Hyatt about $120,000 over 6 years. of course, no one
can predict what revenue the next 6 years will bring in. Robb said
the dollar amount the City can start with is $70,000 to $80,000.
Nelson said that the bank is ready to buy Park Place for $350,000.
Robb said that if the bank offers that much, Nelson should pursue
the offer. Nelson is looking to reclaim his old Wastewater
Treatment Plant (WWTP) from the County. According to Nelson, it is
his, but the County removed it from the site once the lift station
was connected to the County force main along U.S. Highway No.l.
Nelson Hyatt said that the original WWTP was north of Stratton
Avenue (now Barber Street) west of the railroad tracks.
Nelson referred to the Press Journal article last Sunday regarding
Utilities with specific reference to impact fees. Robb said new
customers will pay 100% of impact fees. He also said that if the
the City can take over the lift station, the City will not ask the
164 existing customers for impact fees once they resell their
mobile homes as the current agreement requires. Nelson Hyatt wants
to extend the impact fees grace period from 5 years to possibly 10
years. He said that he could possibly realize $440,00 in
reimbursement costs the next six years depending on new
connections. In 1988 and 1989, Park Place averaged 40 units per
year. Park Place currently has 212 lots that are buildable, 162
are already occupied. Nelson wanted to know what was in store for
future lots. Robb said that the City will honor the 5 year impact
fee grace period and grandfather in the existing residents. The
City will have to pay approximately $100,000 in engineering fees
and construction costs to install the force main. There will be no
impact fees for existing customers.
Nelson was under the impression that the City would pay for the
water and sewer line expansion when he develops his next phase of
Park Place. Both Robb McClary and Rich Votapka stated that any
expansion of development requires the developer to expand the water
and sewer systems. The systems, once completed and accepted, are
dedicated to the City. The cost of constructing the systems are
passed onto the individual homeowner when he/she purchases a home
in Park Place. The County never has paid for water and sewer
expansion in a new development, neither will the City.
Page Three of Three
Minutes of April 28, 1993 Meeting
Ret Park Place
In summary, the City will propose to do the followings
1) Will pay for 2 line extensions - one to the water plant; one
to the lift station.
2) Will grandfather in "no impact fees" for the existing 164
customers until 5 years expire in July, 1994.
3) Will offer cash - CASH
ERU's
or Combination
The City will have to pay $100,000 for installation of a force main
and $53,000 plus for installation of a water main.
The $10.00 per month surcharge will be eliminated.
Nelson is looking towards a cash payment and a number of ERU's
extended to a time certain.
The meeting was adjourned with the understanding that we would meet
again at 9t30 Ali on Tuesday. May 4, 1993.
File, WP Directory/Minutes
CITY OF SEBASTIAN
UTILITIES DEPARTMENT
DATE: May 6, 1993 TIME: 3:00 p.m.
[x ] CONFERENCE WITH Nelson Hyatt and Michael Cairns
[ ] TELEPHONE CONFERENCE WITH
SUBJECT: Park Place Water System Surcharge and Impact Fees
RESUME OF CONVERSATION: Robb McClary gave Nelson and Mike a copy
of my memo of April, 1993. Nelson wanted to know how his
commercial property on US 1 was affected. We discussed the numbers
regarding customer connections. Nelson and Mike's projections were
high. They had 275,000 based on growth. Water would be 2600 -
3000 gallons daily per household. The County has 1 ERU for each
mobile home.
Nelson wants to work with $300,00; $150,000 cash now and $150,000
in future revenues. Robb said that the City could let Nelson re-
establish the franchise, if we leave it the same way. Mike would
prefer taking care of the impact fees. According to Robb, the City
can offer impact fee credits. Robb said that we can offer $70,000
to $80,000.
Extending the impact fee window from the July 11, 1994 termination
of grace period to one or two years beyond is what Nelson would
like. The City is offering $140,000 in impact fee credits. Robb
offers $80,000 cash and $140,000 impact fee credits for a total of
$220,000.
aeao/hyatt
City of Sebastian
POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330
FAX 407-589-5570
November 3, 1993
Charles I. Nash, Esquire
Frese, Nash & Torpy, P.A.
930 S Harbor City Blvd.
Melbourne, FL 32901
RE: July 11, 1989 Interlocal Agreement Between Nelson Hyatt
and Indian River County, Florida in Reference to Park
Place Utilities Systems (f/k/a The Village of Lake
Dolores)
Dear Charlie:
A situation has arisen in Park Place in regard to the above
"Agreement" which requires me to seek your legal opinion with
respect to the payment of impact fees. A copy of the "Agreement"
is attached. I direct your specific attention to Paragraph 6,
"Impact Fees", on the last page.
With reference to Paragraph 6, a homeowner in Park Place who
purchased her residence prior to July 11, 1989, the date the
"Agreement" was executed, wishes to sell her home. Both Nelson
Hyatt, owner of Park Place, and Harry Asher, Indian River County
Assistant Utilities Director, maintain that the homeowner must pay
water and sewer impact fees since the home will be resold.
The second sentence in Paragraph 6 states "Units which have
had a Certificate of Occupancy issued to them before five years
from the date of this agreement must have an impact fee paid when
that unit is resold without regard to the five year Seller's grace
period." Harry Asher maintains that no one in Park Place is
grandfathered in prior to the July 11, 1989 "Agreement", that
impact fees must be paid for all homes being resold even if a
Certificate of Occupancy was issued prior to the July 11, 1989
execution date of the "Agreement".
My questions to you are as follows:
1. Since the "Agreement" is between the Seller (Nelson Hyatt) and
Indian River County, can Nelson Hyatt or the Coun_} require
the homeowners who were not part of the Agreement to pay the
impact fees if their Certificates of Occupancy were issued
prior to July 11, 1989?
Page 2 of 2
November 3, 1993 Letter to Charles Nash, Esquire
2. If Nelson Hyatt is requiring the homeowner whose Certificate
of Occupancy was issued prior to July 11, 1989 to pay the
impact fees upon resale of the home, wouldn't the homeowner
have to have been informed of such condition through a written
prospectus, which should have been approved by the Florida
Land Sales Board?
3. Does Indian River County have the authority to retroactively
require existing homeowners to pay impact fees for water and
sewer on a mandatory basis upon takeover of a system?
Please respond to the above questions as soon as possible
because there are several people, including myself, who desire to
have this issue resolved.
Sincerely,
Richard B. Votapka, P.E.
Utilities Director
RBV/nsv
Enclosure
S. WARRANTY OF TITLE; HOLD HARMLESS: SELLER
shall warrant title to all the real and personal property In
SYSTEM and shall hold the COUNTY harmless from any and all
claims for damages from third parties, and in particular for
any claims from LAKE DELORES UTILITIES AND CABLE TELEVISION
SYSTEMS, INC.
6. IMPACT FEES: After five years from the date
of this agreement SELLER shall be obligated to pay Impact
fees to the COUNTY, at the rate then current, for each unit
�. which thereafter requires a Certificate of Occupancy. Units
which have had a Certificate of Occupancy Issued to them
before five years from the date of this agreement must have
an Impact fee paid when that unit Is resold, without regard
to the five-year SELLER's grace period. At closings an such
sales, SELLER or successor In title shall collect the impact
fee and remit It to COUNTY.
7. SURCHARGE ON RATES: COUNTY shall establish a
surcharge on water and wastewater rates for customers In the
service area as shown on Exhibit "D." The surcharge shall
be collected by the COUNTY for ten years only or until
$777,000.00 has been paid, whichever comes first, and funds
so collected shall be remitted quarterly to SELLER. SELLER
agrees that the funds so remitted shall be full satisfaction
for SELLER's right to be reimbursed for Its equity in the
SYSTEM. The COUNTY surcharge shall be $10 per ERU
(equivalent residential unit).
8. CLOSING DATE: The closing shall take place on
or before August 1, 1989.
IN WITNESS WHEREOF, the parties hereto have set
their hands and seals on the date first set forth above.
Attest
e y R a6 �toh
Cler t �he--Qoatd.
BOARD OF COUNTY COMMISSIONERS
INDIAN RIVER COUNTY, FLORIDA
BY J17cJ
Vary/Uti- FieeTer
Chai man
(SEAL)
h�tl no" b A,,,,.,d U31e
I�: Tn
FrtESE, NASA & TOf2PY, P.A.
ATTORNEYS AT LAW
GAAV B. FHESE 1
CHAALF.9 Iw NV H-
vmcC G. ToR . JR. s
ILcx E. ToR
GSEOOEV S. FL WSEN j
J. PAT cK ANDEEBON
LAURA r- ANDEP ON
CHAR38s A- SCHDl am
Sre m P. IiEU810N
WRunert A. GRDREA
or Cou sE. November 9, 1993
CR BATES FOe
of COUNSEL
VIA TELECOPIER NO.: (407) 244-5690
Thomas A. Cloud, Esquire
Gray, Harris & Robinson
201 E. Pine Street, Ste. 1200
Orlando, FL 32802-3068
930 S. FLn oe Cny B1vn.
Su= 505
MEc ouRNE. F Lo=A 32901
(407) 994-3300
FAX (407) 9513741
tBOARD CER M wTAKAnoN
BOARD CEx vW71U &
ESTATES W¢
*BOARD CERnPfED MCrW TRW.I.AW
RE: City of Sebastian
Interlocal Agreement with Indian River County
Dear Tom:
I have enclosed with this letter a copy of the correspondence
I received from Richard B. Votapka, Utilities Director for the City
of Sebastian, along with a copy of the document he enclosed with
his letter to me.
I would appreciate some direction or assistance from you in
addressing the questions and concerns raised in Mr. Votapka's
correspondence to me. The situation involving the County - Nelson
Hyatt Agreement has created significant concern among the residents
(renters) at the Park Place manufactured home park.
Looking forward to hearing from you soon in this regard.
Very truly yours,
FRESE1 N H & TORPY, P.A.
Charles Ian Nash
CIN/bl
Enclosures as
cc: Richard B
Utilities
stated
Votapka,
Director
w/out copy of enclosures
Kathryn M. O'Halloran,
Interim City Manager
w/out copy of enclosures
5/IG/DO'I(Lcgal ree5(V10 TP
A C R E E M C N T
INDIAN RIVE11 COUNTY. FLORIDA,
AND
NELSON HYATT
RC: COUNTY TAKE-OVER OF UTILITY SYSTEM
G -
THIS ACRCEMENT, made this 11th day of July
1909, between INDIAN RIVER COUNTY, a
political subdivision
of the Stntc of rlorldn, 1090 25th Strce.t, Vero Bench, rL
229GO (COUNTY) and NELSON HYATT (SELLER), whose address Is
12505 North A -1-A, Vero Beach, PL 729G7
iV I T N E S S E T H
"CRCAS, SELLER is the owner of a water and
wastewater utility system servicing a portion of the City of
Sebastian: and
WHERCAS, COUNTY lens embarked on a program of.
providing quality water and wastewater service.to as much of
Indian River County as is financially feasible: and
%VHCREAS, as part of this program, the COUNTY hos
approached SELLER concerning purchasing his utility system:
and
WHEREAS, SELLER has agreed to this purchase by
COUNTY, provided that he will have five years in which to
finish Ills development, without paying Impact fees, and for
those units sold before the end of the five-year period,
Impact fees will have to be paid only ns those units arc
resold: and
WHEREAS, SELLER would Iil(e to receive l.return of
initial enpitnl investment of some :777,000 used to
construct the utility: and
117iCRCnS, the COUNTY agrees to this, provided that
only the Customers in the service area or SYSTEM at the date
of•tll(s agreement shall be charged for this expense,
NOW. THERErORE, for and In consideration of the
mutual covenants contained herein as well as other good and
vnlunble consideration, the COUNTY and SELLER agree a
follows:
____ __1
___
S. WARRANTY OF TITLE: HOLD HARMLESS: SELLER
shall warrant title to all the real and personal property In
SYSTEM and shall hold the COUNTY harmless from any and all
claims for damages from third parties, and In particular for
any claims from LAKE DELORES UTILITIES AND CABLE TELEVISION
SYSTEMS, INC.
—� 6. IMPACT FEES: After five years from the date
of this agreement SELLER shall be obligated to pay impact
fees to the COUNTY, at the rate then current, for each unit
which thereafter requirds a Certificate of Occupancy. Units
which have had a Certificate of Occupancy Issued to them
before five years from the date of this agreement must have
an Impact fee paid when that unit is resold, without regard
to the five-year SELLER's grace period. At closings on such
sales, SELLER or successor In title shall collect the Impact
fee and remit it to COUNTY.
7. SURCHARGE ON RATES: COUNTY shall establish a
surcharge on water and wastewater rates for customers In the
service area as shown on Exhibit "D." The surcharge shall
be collected by the COUNTY for ten years only or until
$777,000.00 has been paid, whichever comes first, and funds
so collected shall be remitted quarterly to SELLER. SELLER
agrees that the funds so remitted shall be full satisfaction
for SELLER's right to be reimbursed for Its equity in the
SYSTEM. The COUNTY surcharge shall be $10 per ERU
(equivalent residential unit).
8. CLOSING DATE: The closing shall take place on
or before August 1, 1989.
IN WITNESS WHEREOF, the parties hereto have set
their hands and seals on the date first set forth above.
Attest
���At Y �a rton
Cl e r t �j� oatd. a.�.�
L( vel -8..+-t.
0
BOARD OF COUNTY COWAISSIONERS
INDIAN RIVER COUNTY,FLORIDA
By cx)IIWheeler
Chai man
(SEAL)
ben Mn Cf I Aeawea uile
City of Sebastian
POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570
December 8, 1993
Mr. Nelson Hyatt
2210 E. Lakeview Drive
Park Place
Sebastian, FL 32958
RE: Payment of Surcharges Collected From Park Place Utility
Customers
Dear Nelson:
It has been brought to my attention by the City Finance
Director that you have requested payment of all the surcharge fees
collected by the City of Sebastian from the Park Place water/sewer
customers. As you may be aware, the City of Sebastian has
encountered some problems with interpretation of the County -Park
Place Takeover Agreement as well as County billing to the City
since May 1, 1993, when the County transferred Park Place to the
City. The City is in dispute with the County on billing and the
$10.00 surcharge has become a legal issue. On December 1, 1993,
the City Council authorized City Attorney Charles Nash to review
the Takeover Agreement as soon as possible to resolve the issues
brought to their attention. City staff, along with Attorney Nash
and Attorney Cloud, are planning to meet at the earliest convenient
date following closing of the General Development Utilities
Sebastian Highlands water and wastewater system scheduled for
December 16, 1993.
I would request your patience in regard to payment of the
surcharge until such time as we have a legal opinion from our
attorneys as to the surcharge. Either the City Manager, City
Finance Director, or myself will keep you informed on this matter.
Sincerely, �/
�'�Xf l�� 4
Richard B. Votapka, P.E.
Utilities Director
RBV/nsv
CC: Kay O'Halloran, Interim City Manager
Marilyn Swichkow, Finance Director
Charles Nash, City Attorney f?r5/
CITY OF SEBASTIAN
UTILITIES DEPARTMENT
DATE: December 14, 1993 TIME: 9:55 a.m.
[ ] CONFERENCE WITH
[x ] TELEPHONE CONFERENCE WITH Michael Cairns of Park Place (388-
3342)
SUBJECT: Waiver of $10.00 Surcharge Fee for One Month's Billing
RESUME OF CONVERSATION: Mike called to see if the City could
install a meter so the plumbing for a home in Park Place could be
tested without having to be charged the $10.00 surcharge for the
month. Mike said that his plumbers would only use the water for a
day or so and then the house would remain vacant until the new
owners moved in the following month.
I checked with Marilyn Swichkow in regard to a "temporary" hookup.
She said that there is no legal authority within the rate ordinance
or rate resolution which would allow any waiver of the surcharge.
I called Mike back and told him that I didn't have the authority to
waive the surcharge. Therefore, no matter when the meter is
installed and whether or not it is installed for testing or
otherwise, the surcharge must be collected.
ORIGINATED BY:
COPY TO:
/surcharge
WLi.0
City of Sebastian
POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570
MEMORANDUM
DATE: March 4, 1994
TO: Marilyn Swichkow, Finance Director
FROM: Richard Votapka, Utilities Director )?& ✓
SUBJECT: Park Place MHP $10.00 Surcharge for Utility Customers
The City of Sebastian currently charges $10.00 per month per ERU
(equivalent residential unit) for only those water and sewer
customers located within the Park Place Manufactured Home Park.
The City assumed collection of this $10.00 surcharge on May 1,
1993, the date Indian River County transferred the operation and
maintenance of the Park Place water system to the City of
Sebastian.
The $10.00 surcharge was initially established by Indian River
County in its "Take -Over Agreement" dated July 11, 1989 between
Nelson Hyatt (Seller), owner of Park Place, and Indian River County
(County). The surcharge was to be collected by the County for ten
(10) years until July 11, 1999, or until $777,000 had been paid to
the Seller, whichever came first. The $777,000 represented the
initial capital investment used to construct the Park Place water
and sewer system. The County agreed to fund the return of the
Seller's investment by charging all of the customers within Park
Place $10.00 per month. Once Indian River County turned over the
Park Place water and sewer systems to the City of Sebastian through
a mutual County -City Interlocal Agreement dated April 21, 1992, the
City became the collector of the $10.00 surcharge in lieu of the
County.
Attached are pages 1 and 4 of the July 11, 1989 "County Take -Over
Of Utility System" agreement between Indian River County and Nelson
Hyatt on which the portion applicable to the surcharge are
underlined. Wherever the word "County" appears the "City of
Sebastian" shall substitute.
A G R E E M E N T
BETWEEN
INDIAN RIVER COUNTY, FLORIDA,
AND
NELSON HYATT
RE: COUNTY TAKE-OVER OF UTILITY SYSTEM
THIS AGREEMENT, made this 11th day of July
1989, between INDIAN RIVER COUNTY, a political subdivision
of the State of Florida, 1800 15th Street, Vero Beach, FL
32960 (COUNTY) and NELSON HYATT (SELLER), whose address Is
12SOS North A -t -A, Vero Beach, FL 32963
W I T N E S S E T H
WHEREAS, SELLER is the owner of a water and
wastewater utility system servicing a portion of the City of
Sebastian; and
WHEREAS, COUNTY has embarked on a program of
providing quality water and wastewater service to as much of
Indian River County as Is financially feasible; and
WHEREAS, as part of this program, the COUNTY has
approached SELLER concerning purchasing h'ls utility system;
and
WHEREAS, SELLER has agreed to this purchase by
COUNTY, provided that he will have five years In which to
finish his development, without paying Impact fees, and for
those units sold before the end of the five-year period,
Impact fees will have to be paid only as those units are
resold; and .—
—� WHEREAS, SELLER would like to receive a return of
his Initial capital investment of some $777,000 used to
construct the utility; and
—� WHEREAS, the COUNTY agrees to this, provided that -
only the customers In the service area of SYSTEM at the date
of this agreement shall be charged for this expense,
j
NOW, THEREFORE, for and In consideration of the
mutual covenants contained herein as well as other goad and
valuable consideration, the COUNTY and SELLER agree as
follows:
GXHI�IT �A
1 �gFCFOVE•'E. AG2B�2u:
S. WARRANTY OF TITLE; HOLD HARMLESS: SELLER
shall warrant title to all the real and personal property In
SYSTEM and shall hold the COUNTY harmless from any and all
claims for damages from third parties, and In particular for
any claims from LAKE DELORES UTILITIES AND CABLE TELEVISION
SYSTEMS, INC.
6. IMPACT FEES! After five years from the date
of this agreement SELLER shall be obiigated to pay Impact
fees to the COUNTY, at the rate then current, for each unit
which thereafter requires a Certificate of Occupancy. Units
which have had a Certificate of Occupancy Issued to them
before five years from the date of this agreement must have
an impact fee paid when that unit Is resold, without regard
to the five-year SELLER's grace period. At closlncs on such
sales, SELLER or successor In title shall collect the Impact
fee and remit It to COUNTY.
7. SURCHARGE ON RATES: COUNTY shall establish a
surcharge on water and wastewater rates for customers In the
service area as shown on Exhibit "D." The surcharge shall
be collected by the COUNTY for ten years only or until
$777,000.00 has been paid, whichever comes first, and funds
so collected shall be remitted quarterly to SELLER. SELLER
agrees that the funds so remitted shall be full satisfaction
for SELLER's right to be reimbursed for Its equity In the
SYSTEM. The COUNTY surcharge shall be $10 per ERU
(equivalent residential unit).
S. CLOSING DATE: The closing shall take place on
or before August I, 1989.
IN WITNESS WHEREOF, the parties hereto have set
their hands and seals on the date first set forth above.
BOARD OF COUNTY COMMISSIONERS
INDIAN RIVER COUNTY, FLORIDA
Attest By 7 (�
41_ _ Cha i man
(/Y 3arton
Cler t�jI oayd. i (SEAL)
�( n�u' win it.e h Acu mea I Ua�"
n.o"m /C 15, 30---f
I .....N V_Z_i
Page Two of Three
Minutes of April 28, 1993 Meeting
Re: Park Place
City of Sebastian
POST OFFICE BOX 780127 0 SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570
DATE: April 28, 1993
FROM: Rich Votapka, Utilities Director
TO Robb McClary, City Manager
RE Minutes of a meeting between Nelson Hyatt, owner, and Mike
Cairns of Park Place and Robb McClary, City Manager.
Robb McClary said that there are two (2) items which are
frustrating to the residents of Park Place:
1) Impact Fees
2) A Surcharge of $10.00 per month
The City of Sebastian needs to tie in rates with GDU eventually,
since the City hopes to acquire the GDU system by midsummer. The
City currently has a handshake deal with GDU, and would like to
work an agreement with Nelson Hyatt, whether in a cash payment or
cash and futures.
Robb McClary's thinking is that Nelson Hyatt has to deal with the
County in regard to sewer. However, concerning the water, the City
will offer a dollar amount to buy out Nelson in cash in order to
have uniformity in rates and eliminate the surcharge after
acquisition of GDU's systems. Robb foresees the original capital
investment will create a debt that will have to be paid by rates
and expansion by those benefitting. All new expansion will have to
be paid by new customers through impact fees.
Robb McClary reiterated that the two most important issues to
discuss now from the City's standpoint and that of Nelson Hyatt's
are as follows:
1) Impact Fees and 5 Year Grace Period until July 11,1994.
2) The $10.00 per month surcharge on every customer's bill.
Whatever the City does will hinge on GDU. New customers at Park
Place will have to pay sewer impact fees to Indian River County and
water impact fees to the City. The City wants to sever the tie to
the Indian River County sewer system by installing its own force
main to the present Indian River County lift station. The City can
offer a "no impact fee" accord to existing residents when the City
takes over the sewer system.
Page Two of Three
Minutes of April 28, 1993 Meeting
Re: Park Place
Park Place currently has 164 customers. At $10/month surcharge,
the total yearly amount is approximately $19,000 per year. It will
net Nelson Hyatt about $120,000 over 6 years. Of course, no one
can predict what revenue the next 6 years will bring in. Robb said
the dollar amount the City can start with is $70,000 to $80,000.
Nelson said that the bank is ready to buy Park Place for $350,000.
Robb said that if the bank offers that much, Nelson should pursue
the offer. Nelson is looking to reclaim his old Wastewater
Treatment Plant (WWTP) from the County. According to Nelson, it is
his, but the County removed it from the site once the lift station
was connected to the County force main along U.S. Highway No.l.
Nelson Hyatt said that the original WWTP was north of Stratton
Avenue (n(;w Barber Street) west of the railroad tracks.
Nelson referred to the Press Journal article last Sunday regarding
Utilities with specific reference to impact fees. Robb said new
customers will pay 100% of impact fees. He also said that if the
the City can take over the lift station, the City will not ask the
164 existing customers for impact fees once they resell their
mobile homes as the current agreement requires. Nelson Hyatt wants
to extend the impact fees grace period from 5 years to possibly 10
years. He said that he could possibly realize $440,00 in
reimbursement costs the next six years depending on new
connections. In 1988 and 1989, Park Place averaged 40 units per
year. Park Place currently has 212 lots that are buildable, 162
are already occupied. Nelson wanted to know what was in store for
future lots. Robb said that the City will honor the 5 year impact
fee grace period and grandfather in the existing residents. The
City will have to pay approximately $100,000 in engineering fees
and construction costs to install the force main. There will be no
impact fees for existing customers.
Nelson was under the impression that the City would pay for the
water and sewer line expansion when he develops his next phase of
Park Place. Both Robb McClary and Rich Votapka stated that any
expansion of development requires the developer to expand the water
and sewer systems. The systems, once completed and accepted, are
dedicated to the City. The cost of constructing the systems are
passed onto the individual homeowner when he/she purchases a home
in Park Place. The County never has paid for water and sewer
expansion in a new development, neither will the City.
Page Three of Three
Minutes of April 28, 1993 Meeting
Ret Park Place
In summary, the City will propose to do the following:
1) Will pay for 2 line extensions - one to the water plant; one
to the lift station.
2) Will grandfather in "no impact fees" for the existing 164
customers until 5 years expire in July, 1994.
3) Will offer cash - CASH
ERU's
or Combination
The City will have to pay $100,000 for installation of a force main
and $53,000 plus for installation of a water main.
The $10.00 per month surcharge will be eliminated.
Nelson is looking towards a cash payment and a number of ERU's
extended to a time certain.
The meeting was adjourned with the understanding that we would meet
again at 9:30 AM on Tuesday, May 4, 1993.
File: WP Directory/Minutes
City of Sebastian
1225 MAIN STREET o SEBASTIAN, FLORIDA 32958
TELEPHONE (407) 589-5330 0 FAX (407) 589-5570
MEMORANDUM
DATE: July 12, 1994
TO:s Moore, Assistant Finance Director
V Richard Votapka, Utilities Director
FROM: Joel L. Koford, City Manager94[i
SUBJECT: Attached copy of the "Agreement"
I notice the paragraph (6th Whereas) contains the clause "...only the customers in the service area
of SYSTEM at the date of this agreement shall be charged ..."
Questions: Why are we charging everyone, regardless of when they moved into Park Place?
/jmt
Attachment
A:\M0712MOR.
City of Sebastian
1225 MAIN STREET o SEBASTIAN, FLORIDA 32958
TELEPHONE (407) 589-5330 C1 FAX (407) 589-5570
MEMORANDUM
DATE July 19, 1994
TO Joel Koford, City Manager
FROM Richard Votapka, Utilities Director A ✓
SUBJECT July 11, 1989 Agreement Between Indian River County,
Florida and Nelson Hyatt Re: County Take -Over of
Utility System - 6th Paragraph on Page 1 below
"WITNESSETH"
I have read your memo of July 12, 1994, in reference to the above
and provide the following explanation to your question, "Why are
we charging everyone, regardless of when they moved into Park
Place?"
This question had been previously raised by several Park Place
residents with specific reference to Paragraph 6 which in
resolution form reads "WHEREAS, the County agrees to this (the
return of Mr. Hyatt's initial capital investment through a
surcharge to customers) provided that only the customers in the
service area of SYSTEM at the date of this agreement shall be
charged for this expense." Several Park Place residents contend
that only the customers who resided in the service area on the
date the agreement was signed should pay the surcharge.
I have discussed this with Rick Torpy in March. The specific
details regarding the "Surcharge on Rates" appear on page 4 of
the agreement in Section 7. The first sentence reads "COUNTY
shall establish a surcharge on water and wastewater rates for
customers in the service area as shown on Exhibit "D". Rick
Torpy has verbally opined that all Park Place residents pay the
surcharge, since the service area as shown on Exhibit "D"
includes all of the developed and undeveloped areas of Park Place
at the time the agreement was dated.
Joel Koford
Page Two
July 19, 1994
The language in resolution form on Page 1 can wrongfully be
misinterpreted to imply that only the customers living in Park
Place on the date the agreement was signed would pay the
surcharge, no new residents would pay after that date. This
simply isn't so. A resident who moves into Park Place starts
paying the surcharge immediately on his/her first utility bill.
The County always maintained this policy prior to the City of
Sebastian taking over the system on May 1, 1993.
RBV/avr
Attachments (2)
Luiz
A G R E E M E N T
BETWEEN
INDIAN RIVER COUNTY, FLORIDA,
AND
NELSON HYATT
RE: COUNTY TAKE-OVER OF UTILITY SYSTEM
THIS AGREEMENT, made this 11th day of July
1989, between INDIAN RIVER COUNTY, a political subdivision
of the State of Florida, 1800 25th Street, Vero Beach, FL
32960 (COUNTY) and NELSON HYATT (SELLER), whose address is
12505 North A -1-A, Vero Beach, FL 32963
W I T N E S S E T H;
WHEREAS, SELLER is the owner of a water and
wastewater utility 'system servicing a portion of the City of
• Sebastian; and
WHEREAS, COUNTY has embarked on a program of
providing quality water and wastewater service to as much of
Indian River County as is financially feasible; and
WHEREAS, as part of this program, the COUNTY has
approached SELLER concerning purchasing his utility system;
and
WHEREAS, SELLER has agreed to this purchase by
COUNTY. provided that he will have five years In which to
finish hls development, without paying Impact fees, and for
those units sold before the end of the five-year period,
Impact fees wi I I have to be paid only as those -units are
resold; and
—a WHEREAS, SELLER would Iike to receive a return of
his Initial capital Investment of some 5777,000 used to
construct the utility; and
—� WHEREAS, the COUNTY agrees to this,
9 provided that
only the customers In the service area of SYSTEM at the date
of this agreement shall be charged for this expense,
NOW, THEREFORE, for and in consideration of the
mutual covenants contained hereln as well as other good and
valuable consideration, the COUNTY and SELLER agree as
follows:
—17
i �aK2CVEZ ,1G Z—fir Tom:
S. WARRANTY OF TITLE: HOLD HARMLESS: SELLER
shall warrant title to all the real and personal property In
SYSTEM and shall hold the COUNTY harmless from any and all
claims for damages from third parties, and In particular for
any claims from LAKE DELORES UTILITIES AND CABLE TELEVISION
SYSTEMS, INC,
—� 6. IMPACT FEES: After five years from the date
of this agreement SELLER shall be obligated to pay impact
Fees to the COUNTY, at the rate then current, for each unit
which thereafter-requirds a Certificate of Occupancy. Units
which have had a Certificate of Occupancy issued to them
before five years from the date of this agreement must have
an Impact fee paid when that unit is resold, without regard
to the five-year SELLER's grace period. At closings on such
sales, SELLER or successor in title shall collect the Impact
fee and remit it to COUNTY.
_a• 7. SURCHARGE ON RATES. COUNTY shall establish a
surcharge on water and wastewater rates for customers in the
service area as shown on Exhibit "D." The surcharge shall
be collected by the COUNTY for ten years only or until
$777,000.00 has been paid, whichever comes first, and funds
so collected shall be remitted quarterly to SELLER. SELLER
agrees that the funds so remitted shall be full satisfaction
for SELLER's right to be reimbursed for Its equity in the
SYSTEM- The COUNTY surcharge shall be $10 per ERU
(equivalent residential unit).
8. CLOSING DATE: The closing shall take place on
or before August 1, 1989.
IN WITNESS WHEREOF, the parties hereto have set
their hands and seals on the date first set forth above.
Attest
41 i �� ... GI �+ tL7'.�,,,,.
�et Y arton
C1e Vt
0
BOARD OF COUNTY COMMISSIONERS
INDIAN RIVER COUNTY, FLORIDA
By26.
_
ary Wheeler
Cha i man
(SEAL)
Mw ft. Ca I ACUa .d I L)il"
Anrfan /C �5�-3�26-6�
i rv�, i Ir.YL1('f
City of Sebastian
1225 MAIN STREET o SEBASTIAN, FLORIDA 32958
TELEPHONE (407) 589-5330 o FAX (407) 589-5570
MEMORANDUM
DATE: • August 17, 1994
TO: Marilyn Swichkow, Finance Director
Richard Votpaka, Utilities Director
FROM: Joel L. Koford, City Manager 9,(v
SUBJECT: Impact Fees - Park Place
As you know the sewer and water impact fee for Park Place has been an ongoing item of
discussion. However, we have been able to obtain a change in "heart" from the County, so
the following policy is now in effect, for Park Place only.
a. Since impact fees will be held in escrow by the developer (Mr. Hyatt) pending
a change to the "Agreement" regarding impact fees for Park Place.
b. In the event the County changes their mind, the sewer impact fee will be
collected from Mr. Hyatt and remitted to the County.
C. Water impact fees are payable to the City and there will be no change in this
procedure.
In summary, we collect and retain water impact fees and require Mr. Hyatt to hold sewer
impact fees. Once the new "Agreement" is finalized, we will change our policy and abide
by the new provision.
/jmt
City of Sebastian
1225 MAIN STREET 11 SEBASTIAN, FLORIDA 32958
TELEPHONE (407) 589-5330 C3 FAX (407) 589-5570
September 19, 1994
Mr. Nelson Hyatt, President
Park Place Mobile Home Park
2210 East Lakeview Drive
Sebastian, FL 32958
Re: Payment of Impact Fees on Specific Mobile Home Resales in
Park Place
Dear Mr. Hyatt:
As you are aware, the July 11, 1989 County Takeover Agreement between you and
Indian River County requires that water and sewer impact fees are to be paid at the
time of closing for all resold units. The Finance Department has brought to my
attention that there are at least three (3) resold units for which the City has no record
of the impact fees being received as follows:
1) 3535 South Derry Drive - former owner, Elizabeth Caldwell, stated that
the closing of her resold home took place on July 18, 1994, during which
you acted as her agent.
2) 2083 E. Lakeview Drive - former owner, Thomas Cary, sold his home to
Ed Vesley on September 12, 1994.
3) 2086 E. Lakeview Drive - former owner, George Fleming, sold his house
to Gloria Lipscomb on September 1, 1994.
Please advise me as to payment of the impact fees on the above residences as soon as
possible. The water impact fee of $1100 must be paid to the City of Sebastian; the
sewer impact fee of $2551 must be paid to the City as well but the Finance Department
Mr. Nelson Hyatt
September 19, 1994
Page 2 of 2
requests that the check be made payable to "Indian River County". Any continuation
of the grace period does not negate payment of impact fees for a resold residence. If
there are any other resold residences for which impact fees have not yet been paid,
please let me know immediately. Thank you.
Sincerely,
Richard B. Votapka, P.E.
Utilities Director
cc: Marilyn Swichkow, Finance Director
Nancy Veidt, Finance Department
RB V/sg
City of Sebastian
POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570
MEMORABDUE
DATE: January 23, 1995
T0: Joel Koford, City Manager
FROM: Richard B. Votapka, Utilities Director -ESL/
SUBJECT: Change of Ownership of Park Place Mobile Home Park
Mr. Joe Morozowski, past Vice President of the Park Place
Homeowners' Association, called me this morning to tell me that
Nelson Hyatt had recently sold Park Place. Mr. Morozowski said
that he had an attorney in Vero Beach review the July 11, 1989
County Takeover Agreement between Indian River County and Nelson
Hyatt, with specific regard to the payment of the $10.00 monthly
surcharge.
The attorney informed Mr. Morozowski that there was no provision in
the Agreement which allowed the City to continue collecting the
surcharge for a new owner. Based on the attorney's opinion, Mr.
Morozowski will not pay the $10.00 surcharge on this month's
utility bill.
I informed Mr. Morozowski that I would bring this matter to your
attention, but unless I received authorization from you, I could
not automatically discontinue the collection of the surcharge on a
monthly basis. Although the issue is a legal one, I am of the
opinion that the Takeover Agreement mandates the City to collect
the $10.00 surcharge for Nelson Hyatt regardless of whether or not
he sells Park Place. The surcharge is payment to Nelson Hyatt for
the improvements he made when he constructed the utility system.
I would like your opinion and/or that of our City Attorney on this
matter, so that I can contact Joe Morozowski before the due date of
his next bill in February.
Also, now that Park Place has been sold, will the City now have to
negotiate with the new owner to procure the necessary right-of-way
for Barber Street?
RBV/jw /memo/kafa[dl:
OFFICE OF COUNTY ATTORNEY
is BOARD OF COUNTY COMMISSIONERS
INDIAN RIVER COUNTY
`<oRya° 1840 25th Street, Vero Beach, Florida 32960
Telephone: (407) 567-8000, Ext. 424
Suncom: 224-1424
Fax: (407) 770-5095
May 2, 1995
Mr. Nelson Hyatt
Park Place
9605 S. U.S. #1
Sebastian, FL 32958
Re: Amended Agreement
Dear Mr. Hyatt:
CHARLES P. VITUNAC
County Allomey
WILLIAM 6. COLLINS 11
Deputy County Attorney
TERRENCE P. O'RRIEN
Ant. County Attorney
SHARON PHILLIPS RRENNAN
AW. County Attorney
Per our phone conversation today, I am enclosing five original agree-
ments that we request you execute and then keep one and deliver four
originals to the City of Sebastian to be put on their City Council
agenda for the May 10 meeting. After their execution of the agreement,
the county would like them to keep one and to return the others to the
County for presentation to the Board of County Commissioners at their
meeting May 16, 1995. After execution by the Board we will ensure
that you, the City, and the County each have a completely executed
original agreement.
I hope this information will be of assistance to you. Thank you.
Sincerely yours,
COUNTY ATTORNEY'S OFFICE
Lea R. Keller, CLA
Legal Assistant
Re: Lake Delores Utility System
AMENDMENT TO AGREEMENT
between
INDIAN RIVER COUNTY, FLORIDA
1840 25th Street, Vero Beach, FL 32960
(hereinafter COUNTY)
and
NELSON HYATT
12505 North A -1-A, Vero Beach, FL 32963
(hereinafter HYATT)
(Hyatt wag referred in the 1989 Agreement an "Seller")
THIS AMENDMENT WITNESSETH THAT:
WHEREAS, by agreement dated the 11th day of July, 1989, between COUNTY
and HYATT, COUNTY purchased HYATT's utility system for $777,000 to be paid
for by a $30.00 per month surcharge on the utility bills of customers served
by the system, for ten years or until $777,000 had been collected, whichever
came first, and by delaying the obligation of HYATT to pay impact fees for
units for five years; and
WHEREAS, HYATT has received $60,396.76 from the COUNTY and $39,580.00
from the City of Sebastian toward the purchase price of $777,000.00; and
WHEREAS, because of the objections of some residents within the service
area to paying a surcharge, the Utilities Department ham negotiated with
HYATT for an amendment to the agreement which would cancel this surcharge
from the date of this amendment in exchange for extending the time during
which HYATT could delay payment of impact fees for three years from the
original expiration date;
Now, Therefore, for and in consideration of the mutual covenants
contained herein as well as other good and valuable consideration, the
receipt of which is hereby acknowledged, the COUNTY and HYATT agree that the
agreement between the COUNTY and HYATT dated July 11, 1989, a copy of which
is attached, is hereby amended am follows:
1. Paragraph 6 - "Impact Fees" is changed to read:
AfterIZdE/#Edtd/ftdd/CXd/ddfd/df/CMLd/dejfddEEdC July 11, 1997, SELLEH
HYATT or hie successor shall be obligated to pay impact fees to the
COUNTY, at the rate then current, for each unit which thereafter
requires a Certificate of Occupancy. Unite which have had a Certificate
of occupancy issued to them before fl/E/JEdtd/ftdd/CME/ddfd/df/CH16
dgtEEdEdC July 11, 1997, must have an impact fee paid when that unit is
resold, without regard to the fLfE{jEdt/dLLLEAId/4tdEE/¢EtLdd July 11,
1997, date. AC/EZdd16ld/dd Immediately after such sales are closed,
SELLER HYATT or HYATT's successor in title shall EdZZEEC pay, or collect
and pay, the impact fee ddd/fEELC/Lt to COUNTY. On all other closings,
nh.. a., -h naw nurchaser of a unit In the Park
2. Paragraph 7 - "Surcharge on Rates" is deleted.
(page one of two)
IN wITNESS WHEREOF, COUNTY and HYATT have entered into this amendment on
this day of
Attest:
Jeffrey K. Barton, Clerk
sign
witness
printed name:
sign
witness
printed name:
Attest:
Kath�Halloran, City Clerk
Attachment: Agreement of 7/11/89
1995.
INDIAN RIVER COUNTY, FLORIDA
by Its Board of County Commissioners
By
Kenneth R. Hecht, Chairmen
HY7i
Nelson Hya
CITY OF SEBASTIA
N, FLORIDA
By�
Arthur Firtion, Mayor
City of Sebastian
1225 MAIN STREET 13 SEBASTIAN, FLORIDA 32958
TELEPHONE (407) 589-5330 o FAX (407) 589-5570
M E M O R A N D U M
DATE: May 16, 1995
TO: Customer Service Representatives Daryl Thompson and
Nancy Veidt
FROM: Richard Votapka, Public Works/Utilities Director
RE: Cancellation of the $10 Surcharge for all Park Place
Water/Sewer Customers
This memo is follow-up to my verbal communique last week that the
$10 monthly surcharge billed to all Park Place Utility customers
will no longer be collected. As per the attached "Amendment to
the Park Place Utilities Takeover Agreement", which the City
Council approved on May 10, 1995, the $10 surcharge has been
cancelled forevermore.
CC: Joel Haniford, Finance Director
surchge2
City of Sebastian
1225 MAIN STREET o SEBASTIAN, FLORIDA 32958
TELEPHONE (407) 589-5330 o FAX (407) 589-5570
FAX TRANSMITTAL SHEET
FAX # — -3 - 111D )9
DELIVER TO: / / �/ Zol ////1 S
FROM: ) f GYl VO—T�q / A56
DATE: S- 6 - / S TIME SENT:
TOTAL NUMBER OF PAGES (INCLUDING COVER SHEET)
RE: ;p"qx 41
/ /�' C L'
A v
/V
IF YOU DO NOT RECEIVE ALL PAGES, PLEASE CALL (407) 589-5330
City of Sebastian
1225 MAIN STREET ii SEBASTIAN, FLORIDA 32958
TELEPHONE (407) 589-5330 11 FAX (407) 589-5570
M E M O R A N D U M
DATE: May 15, 1995
TO: Tim Williams, Asst. City Attorney
FROM: Richard Votapka, Public Works Director Rev
RE: $10 Surcharge to Park Place Water/Sewer Customers
I have been requested by the City Manager and City Finance
Director to request your opinion on resolving the issue of unpaid
surcharges. The $10 surcharge per month is only applicable to
Park Place residents.
On July 11, 1989, Nelson Hyatt and Indian River County entered
into an agreement for the "County Take-over" of the Park Place
Utility System. As a condition of the agreement, the County
established a surcharge of $10 per customer per month to pay for
the total assets of $777,000 Mr. Hyatt had invested in the
construction of the water and sewer systems. The County collected
the $10 surcharge from each water/sewer customer in Park Place on
a monthly basis and remitted the amount collected to Nelson Hyatt
on a quarterly basis. When the operation and ownership of the
Park Place system was transferred to the City on May 1, 1993, the
City assumed the responsibility of collecting the $10 surcharge
and remitting it to Nelson Hyatt.
Although the residents of Park Place have always maintained an
extreme dislike for the $10 surcharge, the majority of customers
continue to pay it. However, approximately four (4) months ago,
several customers decided that they would not pay the surcharge.
On Wednesday, May 10th, the City Council approved an Amendment to
the July 11, 1989 Takeover Agreement which cancelled the
surcharge entirely. Therefore, the City will no longer bill the
customers the $10 surcharge on any future Utility Bills. The
issue which still needs to be resolved concerns those customers
who refused to pay the surcharge. Should the City write off the
non-payment as a "Bad Debt" expense or continue to bill them for
non-payment in which case deliquent charges and interest will be
assessed?
Page 2 of 2
Park Place Surcharge
In my opinion, all customers should pay the surcharge through the
month of April in terms of the Agreement since the surcharge was
in full force and effect until it was cancelled by City Council
action on May 10th. I see no reason why customers who haven't
paid should be granted the liberty of a "free ride" while the
majority of customers dutifully fulfilled their obligation by
paying the surcharge on a monthly basis.
Please advise me as soon as possible with a written reply. If you
have any questions, call me at 589-5490.
surchge
Pe: Lake Delores Utility System
AMENOHENT TO AGREEMENT
between
INDIAN RIVER COUNTY, FLORIDA
1840 25th Street, Vero Beach, FL 32960
(hereinafter COUNTY)
and
NELSON HYATT
12505 North A -1-A, Vero Beach, FL 32963
(hereinafter HYATT)
(fiyatt was referred in the 1989 Agreement as "Seller")
THIS AMENDMENT WITNESSETH THATI
WHEREAS, by agreement dated the 11th day Of July, 19891 between COUNTY
and HYATT, r.01111TY purchased HYATT's utility system for $777,000 to be paid
for by a $111.00 per month surcharge on the utility bills of customers served
by the ayntem, for ten years or until $777,000 had been collected, whichever
came first, and by delaying the obligation of HYATT to pay impact fees for
units for five yenrel and
WHEREAS, HYATT has received $60,396.76 from the COUNTY and $39,580.00
from the rity of Sebastian toward the purchase price of $777,000.001 and
H
WHEREAS, because of the objections of some residents within the service
area to paying a surcharge, the Utilities Department has negotiated with
HYATT for an amendment to the agreement which would cancel this surcharge
from the date of this amendment in exchange for extending the time during
which HYATT could delay payment of Impact fees for three years from the
original expirntlon date;
Now, Therefore, for and in consideration of the mutual covenants
contained herein as well as other good and valuable consideration, the
receipt of which is hereby acknowledged, the COUNTY and HYATT agree that the
agreement between the COUNTY and HYATT dated July 11, 1989, a copy of which
in attached, is hereby amended NO follows'
1. Paragraph 6 - "Impact Fees" in changed to reeds
After tt ec ltd6//dlfA/ff66/CMd/dlCd/6f/CNL!/l4f dddddC July 11 1997, AMEX
HYATT or his successor shall be obligated to pay impact fees to the
cOONTY, at the rate then current, for each unit which thereafter
requires a Certificate of Occupancy. Unite which have had a certificate
of occupancy Issued to them before fL><d/�dlfd/fidd/CMd/dlCd/6L/CALd
!41!1dddC July 11 1991, must have an impact fee paid when that unit In
resold, without regard to the Lff6f0lf/IELEEAlE/gfldd/�df16d July I1,
1997, date. AC/d16dIA441 66 Immediately after such sales are closed,
lCCCCA HYATT or HYATT-9 successor in GLtle shall 66L4ect pay or collect
and a 1 the impact Cee !6d/f6dLC/LC to COUNTY. On all other closing e,
...w .. n,.rchaeer of a unit in the Park
2. parngraph 7 - "Surcharge on Rates" is deleted.
(page one of two)
IN WTTNESS WHEREOF, COUNTY and HYATT have entered into this amendment on
this _ day of
Attest!
Jeffrey R. Bacton, Clerk
sign
Witness
printed names
sign
witness
printed name!
Attest.
Kathryn OC H—alloren, City Clerk
Attachment! Agreement of 7/11/09
1995.
INDIAN RIVER COUNTY, FLORIDA
by its Board of County Commissioners
By
Kenneth R. Maeht, Chelrmen
BYtyI
Nelson Hye
CITY OF SEBASTIAN, FLORIDA
By .L
Arthur FLrtion, Hay—
A G R E E M E N T
BETWEEN
INDIAN RIVER COUNTY, FLORIDA,
AND
NELSON HYATT
RE: COUNTY TAKE-OVER OF UTILITY SYSTEM
THIS AGREEMENT, made this 11th day of July_
1989, between INDIAN RIVER COUNTY, a political subdivision
of the State of Florida, 1840 25th Street, Vero Beach, FL
32960 (COUNTY) and NELSON HYATT (SELLER), whose address Is
12505 North A -1-A, Vero Beach, FL 32963
W I T N E S S E T H
WHEREAS, SELLER Is the owner of a water and
wastewater utility system servicing a portion of the City of
Sebastian; and
WHEREAS, COUNTY has embarked on a program of
providing quality water and wastewater service to as much of
Indian River County as Is financially feasible; and
WHEREAS, as part of this program, the COUNTY has
approached SELLER concerning purchasing his utility system;
and
WHEREAS, SELLER has agreed to this purchase by
COUNTY, provided that he will have five years in which to
finish his development., without paying Impact fees, and for
those units sold before the end of the five-year period,
Impact fees will have to be paid only as those units are
resold; and
WHEREAS, SELLER would like to receive a return of
his initial capital Investment of some $777,000 used to
construct the utility; and
WHEREAS, the COUNTY agrees to this, provided that
only the customers in the service area of SYSTEM at the date
of this agreement shall be charged for this expense,
NOW, THEREFORE, for and In consideration of the
mutual covenants contained herein as well as other good and
_valuable consideration, the COUNTY and SELLER agree as
follows:
GX I -11(31T ,.A
1 �gycFOVEfr. AG2r'EHBv;
�. �L. :.ov•rr.
1. EXHIBITS TO BE PART OF THIS AGREEMENT:
Attached to this agreement are certain exhibits
which shall be considered to be integral parts of this
agreement as much as If they were written In this agree E� ��i';L "�•`
This list of exhibits is as follows: s4,
Exhibit "A" - Description of all per No i—
property, customer deposits, and fixtures included In
of SYSTEM. �-
Exhibit "B" - Legal description of real -
property (PROPERTY) to be sold to COUNTY.
Exhibit "C" - Description of all easements to
be transferred to COUNTY.
Exhibit "D" - Service area of utility SYSTEM.
2. DEFINITIONS:
A. SYSTEM - For convenience, the term
`<F"lif�e�igMite "�Fteyiy�S;t1l�;s'bii3TnEarc
W�l�or in whhiic-h' It has
a legal Interest Rte ala!'+��f(�Lil lO 34A414,'ip
which are being purchased by COUNTY and which Include the
following:
(1) The Items of Inventory described in
i
Exhibit "A."
�gG'Fjr ! eel ° b9 l9 t! awned by` SELLER
77�7—
r_,�RT,1 d Tt ba ll"buIIdifig hd'Imprevattiefff!"""�
'SELLER this 1 lPsy 0op 61
o.vsres L3: 1'LM' ^ mf) E" lIt12
to Al l`e `yald'�ael'
pt 4!!!!`TYfBfi�if9Fe e:31`is"P; ; ,i
(3) Ail easements, licenses, rights of
way, and consents owned by SELLER for the construction,
operation, and maintenance of the SYSTEM, Including the
easements specifically set forth on Exhibit "C."
(4) All water and wastewater plants,
lines and facilities of every kind and description
whatsoever, including collection mains, transmission mains,
effluent distribution pipes, lift stations or facilities,
valves, service connections, and all other physical
facilities and property Installations in use in connection
with the SYSTEM.
(5) A11 of SELLER's rights of every
character whatsoever and all certificates, Imnunitles,
privileges, permits, licenses, easements, consents, grants,
ordinances, leaseholds, and rights of way, and all rights to
construct, maintain, and operate plants and systems for the
collection of sewage and promises of water and every right
of every character whatever In connection therewith; and all
renewals, extensions, additions, or modifications of any of
the foregoing;
(6) Copies of all past and current
customer records, books, prints, plans, engineering reports,
surveys, specifications, shop drawings, equipment manuals
and other Information required by COUNTY which are in
possession of SELLER or Its agents on the closing date
pertalning to the operation of the system,
(7) A set of record drawings, Including
as-bulit drawings, If available, showing all facilities of
the utility system, Including structural, mechanical, and
electrical detal Is. Such drawings shall also Include any
original tracing, sepias, or other reproducible material
where same Is In possession of SELLER.
B. EXCLUDED ASSETS - Cash or bank accounts
of SELLER which are SELLER's sole property and which are not
subject to refund to customers or which have no application
to specific purposes or uses of the SYSTEM.
4. RIGHT OF FIRST REFUSAL: COUNTY agrees to deed
the real property described on Exhibit "B" to SELLER when
the COUNTY no longer uses the property In Its utility
operation or at the end of ten years from the date of this
agreement, whichever comes first; provided that If at the
end of ten years the COUNTY stl II needs the property, the
COUNTY shall pay the fair market value of the property to
SELLER, and SELLER shall have no further claim against the
property.
3
rZ
S. WARRANTY OF TITLE; HOLD HARMLESS: SELLER
shall warrant title to all the real and personal property In
SYSTEM and shall hold the COUNTY harmless from any and all
claims for damages from third parties, and In particular for
any claims from LAKE DELORES UTILITIES AND CABLE TELEVISION
SYSTEMS, INC.
6. IMPACT FEES; After five years from the date
of this agreement SELLER shall be obligated to pay Impact
fees to the COUNTY, at the rate then current, for each unit
which thereafter requlyds a Certificate of Occupancy. Units
which have had a Certificate of Occupancy Issued to them
before five years from the date of this agreement must have
an Impact fee paid when that unit is resold, without regard
to the five-year SELLER's grace period. At closings on such
sales, SELLER or successor In title shall collect the Impact
fee and remit It to COUNTY,
7. SURCHARGE ON RATES: COUNTY shall establish a
surcharge on water and wastewater rates for customers In the
service area as shown on Exhibit "D." The surcharge shall
be collected by the COUNTY for ten years only or until
$777,000.00 has been paid, whichever comes first, and funds
so collected shall be remitted quarterly to SELLER. SELLER
agrees that the funds so remitted shall be full satisfaction
i
for SELLER's right to be reimbursed for Its equity in the
SYSTEM. The COUNTY surcharge shall be $10 per ERU
(equivalent residential unit).
S. CLOSING DATE: The closing shall take place on
or before August I, 1989.
IN WITNESS WHEREOF, the parties hereto have set
their hands and seals on the date first set forth above.
Attest
e Y a
Cler t rjhBBe-a�rott�oaLd.
0
BOARD OF COUNTY COMMISSIONERS
INDIAN RIVER COUNTY, FLORIDA
By
�a ry ee er
Ch
ai man
(SEAL)
NPn n..n Ci Abu mee Uale
A anon jC S -3o -6f_
i a
-i. -_2
0
�a.e� , --
W1 gess—"
rNi tness
to
Ne I son Hya
Attachments: Exhibits "A," "B," "C," and "D"
Exhibit "A" states "No inventory is included with the purchase"
Exhibit "B" Legal Description of Real Property to be -sold to County
(The County did not Provide any although a deed for the
Park Place Water Treatment Plant was furnished to us)
Exhibit "C" Description of all easenents to be transferred to the County.
Grant of Easenent dated June 15, 1989 between Nelson Hyatt and
Indian River County which is l0' in width for all utilities
land described in Exhibit "A" 10' within Stratton Ave. (aka
Barber Street) to the sewer plant,and lift station and Exhibit
"A-1" which describes the area of Park Place
Exhibit "D" Service area of the utility systen - complete legal description
of Park Place (fka The Village of lake Dolores)
PAGE FIVE CF" FIVE
5/0]./98. T fnya'ao. --l-3
Re: Lake Delores Utility System
AMENDMENT TO AGREEMENT
between
INDIAN RIVER COUNTY, FLORIDA
1840 25th Street, Vero Beach, FL 32960
(hereinafter COUNTY)
and
NELSON HYATT
12505 North A -1-A, Vero Beach, FL 32963
(hereinafter HYATT)
(Hyatt was referred in the 1989 Agreement as "Seller")
THIS AMENDMENT WITNESSETH THAT:
WHEREAS, by agreement dated the 11th day of July, 1989, between COUNTY
and HYATT, COUNTY purchased HYATT's utility system for $777,000 to be paid
for by a $10.00 per month surcharge on the utility bills of customers served
by the system, for ten years or until $777,000 had been collected, whichever
came first, and by delaying the obligation of HYATT to pay impact fees for
units for five years; and
WHEREAS, HYATT has received $60,396.76 from the COUNTY and $39,580.00
from the City of Sebastian toward the purchase price of $777,000.00; and
WHEREAS, because of the objections of some residents within the service
area to paying a surcharge, the Utilities Department has negotiated with
HYATT for an amendment to the agreement which would cancel this surcharge
from the date of this amendment in exchange for extending the time during
which HYATT could delay payment of impact fees for three years from the
original expiration date;
Now, Therefore, for and in consideration of the mutual covenants
contained herein as well as other good and valuable consideration, the
receipt of which is hereby acknowledged, the COUNTY and HYATT agree that the
agreement between the COUNTY and HYATT dated July 11, 1989, a copy of which
is attached, is hereby amended as follows:
1. Paragraph 6 - "Impact Fees" is changed to read:
After ff��/��t(f�/i�Ed:h/{S�/a1¢k`�/�1`/k�Hi�/�a�z`��tfik�iC July 11, 1997, $9=99
HYATT or his successor shall be obligated to pay impact fees to the
COUNTY, at the rate then current, for each unit which thereafter
requires a Certificate of Occupancy. Units which have had a Certificate
of Occupancy issued to them before ff�S�/¢6�t�/ff�d/C8�/e1dP�/bf/iKffi
A¢ 0416:0H July 11, 1997, must have an impact fee paid when that unit is
resold, without regard to the July 11,
1997, date. Xi/i6169tlijk/bA Immediately after such sales are closed,
$1=91( HYATT or HYATT's successor in title shall ¢bff6Ei pay, or collect
and pay, the impact fee A44HORWIff to COUNTY. On all other closings,
HYATT shall recuire that each new purchaser of a unit in the Park
execute a disclosure form acknowledging that the new purchaser has been
when the
2. Paragraph 7 - "Surcharge on Rates" is deleted.
(page one of two)
IN WITNESS WHEREOF, COUNTY and HYATT have entered into this amendment on
this 16 � day of 1Ld , 1995.
INDIAN RIVER COUNTY, FLORIDA
Attest: by its Board of County Commissioners
/
ByIZ-4,1wee,W46hairman
(d r K. ,Bart erk a neth R. c
r�r D.C..
sign
Witness
printed name:
sign
Witness
printed name:
Attest:
Kathryn 'Halloran, City Clerk
Attachment: Agreement of 7/11/89
HYATT: /
elson Hyatt
CITY OF SEBASTIAN, FLORIDA
!�
/ i57 - M'
Indian River Cu Aggroved
Dale
Admin.
Legal
Budge)
_
Dept.
Risk Mgr.
City of Sebastian
1225 MAIN STREET 0 SEBASTIAN, FLORIDA 32958
TELEPHONE (407) 589-5330 0 FAX (407) 589-5570
M E M O R A N D U M
DATE: April 27, 1995
TO: Nancy Veidt, Customer Service Representative
FROM: Richard Votapka, Public Works Director �18✓
RE: $10 Surcharge for Park Place Water/Sewer Customers
As per your request, I asked City Manager Joel Koford if the City
should discontinue billing Park Place Utility customers the
monthly $10 surcharge at this time in view of the recent
agreement between Nelson Hyatt and Indian River County to
eliminate the surcharge entirely. Mr. Koford said to continue
billing the surcharge because the City of Sebastian has not
received any official communique from Indian River County
directing the City to cease charging the surcharge. He said that
to date the City has not been informed that the ratification of
the agreement was accomplished by the Indian River County Board
of County Commissioners.
cc: Joel Haniford, Finance Director
Daryl Thompson, Customer Service Representative
surchar
MEMORANDUM
TO: Daryl Thompson, Customer Service
FROM: Nancy Veidt, Computer Operator
DATE: March 30, 1995
SUBJ: Park Place Surcharge
Joel Koford, City Manager, stopped me at City Hall yesterday and
informed me that we cannot charge a penalty on non-payment of the
Park Place surcharge. The utilities software is set up so that any
payment automatically applies to the oldest charges. Therefore, if
the surcharge is the oldest outstanding charge, the software will
apply the payment to the surcharge and leave current charges for
water and/or sewer as showing outstanding.
When customers are not paying the surcharge we must enter a "manual
payment" and manually apply the payment to the current billing.
This will prevent the software from automatically applying payments
to the outstanding surcharge charges.
cc: Rich Votapka, Utilities Director A,5v
Joel Haniford, Finance Director
age 1 Joe Morozowski
:,:Sebastian City Council
Joseph Morozowski
3426 Heatherway Ln.
Sebastian,FL 32958
February 20,1995
RECEIVEC)
FEB 1995
CITY CL HK`j
OFFICE
copies:J.Koford-City Manager
K.O'Halloron-City Clerk
`�R.Votapka-Utiljties Director
City Attorney
jbject:Park Place Utilities Surcharge.
jestions raised as to the legality of the Park Place surcharge remain
Den and unanswered as of this writing.
ie Sebastian City Council directed the then City Attoney,Mr.Nash on
=cember 1,1993 to investigate the legality of the Park Place agreement
id determine if the surcharge was a valid pass through to the residents.
ifteen months later,we are still waiting for an answer.Although many
Duncil members and Mr.Koford have been asked to intervene to get a written
iswer,no answers have been forecoming. Patience is now run out.
-mo dated December 27,1993-R.Votapka to K.O'Halloron
Runty take over of utility system -Exhibit "A" dated July 11,1989
3ragraph 7 states:Quote"only the customers in the service area of
,-stem .it the date of this agreement shall be charged for this expense"
-iquote.The expense referred to is the $777,000.00 purchase price and
ie $10.00 monthly surcharge.
31m Lake Club draws water from the Park Place plant but pays NO surcharge.
ien Sebastian Water utility is questioned as to this discrepancy,their
iswer is Palm Lake Club wasn't in the system on July 11,1989 the date
F the agreement and are therefore exempt.
all neither was I on the system on July 11,1989,my occupancy started
Dril 1993,as many as 75 other residents have Certificates of Occuupancy
s ued later than July 11,1989. It appears we have a double standard in
oplying this surcharge.
Dok 77 Pages 287 thru 292 Public Hearing -Purchase of Lakes of Delores
Lilities your attention to question of statute 125.3401.Wrong one??
-,ogle of Park Place were never notified of this action properly ie
is its Homeowners Association.
-free different names and dates were used used in newpaper notices.
Jviertised as Lakes of Delores Utility System (Public Notice)
axt page Book 77 -Page 288 it is now called Nelson Hyatt Water & Sewer
tilities serving Park Place Mobil Home Park,formerly Lake of Delores
tility system.If formerly and advertised as Lakes of Delores Utility
vstem how were people to know what was being sold?
emo:August 4,1994 Votapka to Koford Paragragh 1
jote"the opinion never received from Torphy questioning validity
F surcharge properly noticed & under appropriate statue.
jge 2 Joe Morozowski
imerous times I get the answer,the county is responsible.Letter of
�cember 13,1993 Vitunac to O'Hallorn under(County-City)agreement,
=quested by Frank Oberbeck.Quote"the county assigns and the city assumes
11 county's rights,duties and obligations under this agreement."unquote.
re agreement referred to is the April 21,1992 agreement.
=mo December 27,1993 Votapka-O'Halloran -Page 2
jote"thu county has in its possession $171,000.00 worth of assets
-om the Park Place system.Why hasn't Sebastian collected those funds
id given credit to Park Place" unquote
jgc 3:City acts as a collection agency,at no charge,for a private
Dntractor.
cemberl,1993 Mrs.Swichkow stated at City Council meeting it was illegal
Jr her to collect and remit these funds under a Florida State statue,and
id would only do so if directed by the City Council.
can't get any answers to this.City money and time is being spent to
Jminister this service for a non-resident developer,while the residents
3y for a dubious surcharge.Cost to the taxpayer is what?
Dok 77 Page 291 Paragraph 4 states.Quote "Any expansion of the system
iat is done to accommodate those other 600 lots will be done at the
eveloper's expense."unquote.Paragraph 5 Quote"if they want to add
istomers they would have to do the line expansion themselves."unquote.
D me this means no surcharge for the people in the system after
my 11,1989.
Dok 77 Page 280 Paragraph 3 states-Quote"this means that the owner
Duld get only $10.00"unquote.They are using the term owner -seller
iterchangably.
•iis brings up the fact that Park Place was sold prior to February 1,1995,
;ted recorded with the county is clear with purchase of the existing
Dme sites,with Nelson Hyatt keeping the undeveloped portions of the
roperty.as stated above the OWNER collects the surcharge.Not being
ransferred or sold cannot be not stipulated in any agreement.Mr.Hyatt
s no longer the OWNER therefore the surcharge shold be eliminated
nmediately.
i January 23,1995 I notified Richard Votapka of the above fact and
dvised him I would not pay the surcharge as it didn't exist anymore,as
F the date the park was sold.He requested Mr.Koford to get an opinion
_)r' him from the city attorney.To date there has been no reply.
paid my water 8 sewer bill on February 16,1995 less the surcharge and
was advised I would be charged a $5.00 late fee for omitting the
,ircharge.I believe,l paid my utility bill in full minus the now invalid
urcharge.
age 3 Joe Morozowski
t this point.! and I believe the Park Place residents are not looking
or a refund from the city for the surcharge(s) paid.But only for it to
o away NOW. We have been advised by the attorney for the county
uote " one stroke of the pen,and everyone lives happy"unquote
n early written response to the above questions by Sebastian legal
ouncil would be greatly appreciated to finalize this long standing
roblem.
Respectfully:
�&owsk i
Paqe 1 Joe Morozowski
ctiGv�hdao4% kef..,.
3/Zy/9S
- �JO,
M3✓ �ti�h��
^o
Joseph Morozowski ;i
3426 Heatherway Ln. R
Sebastian,FL 32958 e
March 21,1995
Mr.Joel Koford
Sebastian City Manager
City of Sebastian
1225 Main Street
Sebastian,FL 32958
Subjedt:Park Place Utilities Surcharge.
Questions raised as to the legality of the Park Place surcharge remain
open and unanswered,our attempts to have this on going problem addressed
at the City Council meeting of February 22,1995 proved fruitless.
The Sebastian City Council directed City Attoney,Mr.Nash on December 1,1993
to investigate the legality of the Park Place agreement and determine if
the surcharge was a valid pass through to the residents.
Fifteen months later,we are still waiting for an answer.Although many
current and past council members and you have been asked to intervene to
get a written answer,no answers,from Mr.Nash,have been forecoming.
The only information we obtained at the February 22,1994 city council
meeting was for a workshop meeting tape wherein Charles L.Nash,the then
city attorney advised he would discuss the legality of the surcharge with
a Mr.McCloud in February 1994,and get back to the City Council.
I guess you,I,City Council,and 425 residents of Park Place had better
not hold our breath,an longer,awaiting Mr.Nash response.
The purpose of this letter is to request your HELP
Please have your staff review the documentation previously submitted,
and now outlined in detail in this letter.
Also I would appreciate your following up Mr.Nash for his promised and
I assume paid for investigation.
Finally,I and the 424 other residents of Park Place would appreciate
having this subject added to the agenda for the next scheduled City
Council meeting.
The following are documented references,and items brought to the City
Council's attention at the February 22,1995 meeting.
Memo dated December 27,1993-R.Votapka to K.O'Halloron
County take over of utility system -Exhibit "A" dated July 11,1989
Paragraph 7 states:Quote"only the customers in the service area of
system at the date of this agreement shall be charged for this expense"
unquote.The expense referred to is the $777,000.00 purchase price and
the $10.00 monthly surcharge.
Page 2 Joe Morozowski
Palm Lake Club draws water from the Park Place plant but pays NO surcharge.
When Sebastian Water utility is questioned as to this discrepancy,their
answer is Palm Lake Club wasn't in the system on July 11,1989 the date
of the agreement and are therefore exempt.
Well neither was I on the system on July 11,1989,my occupancy started
April 1993,as many as 75 other residents have Certificates of Occuupancy
issued later than July 11,1989. It appears we have a double standard in
applying this surcharge.
Book 77 Pages 287 thru 292 Public Hearing -Purchase of Lakes of Delores
Utilities your attention to question of statue 125.3401.Wrorig one,
should have been statue 180.XXX.
People of Park Place were never notified of this action properly ie
via its Homeowners Association.
Three different names and dates were used in newpaper notices.
Advertised as Lakes of Delores Utility System (Public Notice)
Next page Book 77 -Page 288 it is now called Nelson Hyatt Water 8 Sewer
Utilities serving Park Place Mobil Home Park,formerly Lake of Delores
utility system.IF formerly and advertised as Lakes of Delores Utility
System how were people to know what was being sold?
Memo:August 4,1994 Votapka to Koford Paragragh 1
Quote"the opinion never received from Torphy questioning validity
of surcharge properly noticed 8 under appropriate statue.
Numerous times I get the answer,the county Is responsible.Letter of
December 13,1993 Vitunac to O'Hallorn under(County-City)agreement,
requested by Frank Oberbeck.Quote"the county assigns and the city assumes
all county's rights,duties and obligations under this agreement."unquote.
The agreement referred to is the April 21,1992 agreement.
Memo December 27,1993 Votapka-O'Halloran -Page 2
Quote"the county has in its possession $171,000.00 worth of assets
from the Park Place system.Why hasn't Sebastian collected those funds
and given credit to Park Place" unquote
Page 3:City acts as a collection agency,at no charge,for a private
contractor.
Decemberl,1993 Mrs.Swichkow, stated at City Council meeting it was illegal
for her to collect and remit these funds under a Florida State statue,and
and would only do so if directed by the City Council.
I can't get any answers to this.City money and time is being spent to
administer this pervice for a non-resident developer,while the residents
pay for a dubious surcharge.Cost to the taxpayer is what?
Page 3 Joe Morozowski
Book 77 Page 291 Paragraph 4 states.Quote "Any expansion of the system
that is done to accommodate those other 600 lots will be done at the
developer's expense."unquote.Paragraph 5 Quote"if they want to add
customers they would have to do the line expansion themselves."unquote.
To me this means no surcharge for the people in the system after
July 11,1989.
Book 77 Page 280 Paragraph 3 states-Quote"this means that the owner
would get only $10.00"unquote.They are using the term owner -seller
interchangably.
This brings up the fact that Park Place was sold prior to February 1,1995,
deed recorded with the county is clear with purchase of the existing
home sites,with Nelson Hyatt keeping the undeveloped portions of the
property.as stated above the OWNER collects the surcharge.Not being
transferred or sold cannot be not stipulated in any agreement.Mr.Hyatt
is no longer the OWNER therefore the surcharge should be eliminated
immediately.
On January 23,1995 I notified Richard Votapka of the above fact and
advised him I would not pay the surcharge as it didn't exist anymore,as
of the date the park was sold.He requested Mr.Koford to get an opinion
for him from the city attorney.To date there has been no reply.
I paid my water & sewer bill on February 16,1995 less the surcharge and
I was advised I would be charged a $5.00 late fee for omitting the
surcharge.I believe,I paid my utility bill in full minus the now invalid
surcharge.
At this point,I and 1 believe the Park Place residents are not looking
for a refund from the city for the surcharge(s) paid.But only for it to
go away NOW. We have been advised by the attorney for the county
Quote " one stroke of the pen,and everyone lives happy"unquote
An early written response to the above questions by Sebastian legal
council would be greatly appreciated to finalize this long standing
problem.
Respectfully;
►V Kd4�
lorozowski
cc:
K.O'Halloron-City Clerk
R.Votapka-Utilities Director
Mr.McClevland-City Attorney
Mr.Art Firtion-Mayor
Mrs.Carol Corum-Vice Mayor
Mrs.Louise Cartwright -Councilwoman
Mrs.Norma Damp -Councilwoman
Mr.Ray Halloran -Councilman