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HomeMy WebLinkAbout1991 12 04 - TranscriptBO_ .D OF COUNTY COMMISSIG_ . ERS 1840 25th Street, Vero Beach, Florida 32960 Telephone:(407)567-8000 December 4, 1991 Mr. Robb McClary City Manager City of Sebastian Post Office Box 127 Sebastian, FL 32958-0127 Dear Robb: Soncom Telephone: 224.1011 The County recently obtained a verbatim transcript of the Sebastian City Council meeting of November 6, 1991, at which the City's consulting attorney, Tom Cloud, presented an update on the negotiations with the County for the return of the water and sewer franchise to the City. The County negotiating team is very concerned at the number of inaccuracies in the presentation. As we have discussed, on the date of the Council meeting, the County negotiating team had also met to review the latest draft of the interlocal agreement submitted by Mr. Cloud. Based on the prior negotiating meeting and the new draft from Mr. McCloud, our team was of the opinion that we were very close to an agreement satisfactory to both the City and County. The points relating to timing and metering, as well as the absence of Park Place in the draft, in our opinion, required further discussion. However, none of these matters appeared to be major obstacles that could not be resolved by further discussion by the two negotiating teams. Our negotiating team is still unanimously of that opinion. However, our team is concerned that the inaccuracies presented at the November meeting need to be addressed, in order to remove any unnecessary impediments to the continued progress in arriving at a mutually acceptable interlocal agreement. As a result, enclosed is a copy of the verbatim transcript and our team's general response to it. We look forward to a productive negotiating meeting on Thursday and will have a redraft nf tha nrnnngpd ao•raanna t raariv fnr, _, r1ion,1ccinn g+ T, t tIm. meeting. Sincerely, James E. Chandler County Administrator JEC/Vk Enclosures SEBASTIAN CITY COUNCIL MEETING NOVEMBER 6, 1991 (1) Attorney Cloud: First of all, for the record, my name is Tom Cloud. I'm with the Orlando law firm of Gregg, Harris, Robinson, and Peoples. We sent, late yesterday, a briefing document. I don't know if all of you got one. If you don't have one, I've got an extra copy here. I'd be glad to give it to you right now. They'll be available after the meeting, but I'm going to tell you everything that's in that document. It's a pretty short one. (2) There are four items I'd like to cover tonight. I'll try to be as brief as possible and answer any questions you may have. The first is to describe the status of the negotiations. I think, on the whole, they've been pretty positive. We've had a series of meetings with the County personnel. The last meeting that we had was over at the County offices. There have been some what I'll call "signal crossings" in this thing. Initially, as some of you will recall, Mr. Scurlock and other County officials indicated_ that their offer was really very open-ended; that the City could take back all or part of the franchise, 4i..... .i: Ai IF real l.. rare (3) Well, at our. last meeting, they saidthey really did care, that they wanted us to either take all or none, and when asked the question that that's not exactly what you said to begin with, the response was by Mr. Scurlock, "Gosh, gee, i just don't remember what i said." So, I mean, thre=e's a i e i o at that goes on in all negotiations, but for the most part, I think they've been very positive negotiations and I think that we're very close to an agreement right now and before we finalized it, we wanted to bring it to you to let you know where we were, get some input back from you about the agreement to see if you were satisfied with it, if we were going in the right direction. And right now, the conceptual agreement that's before you is not what I would call the best of all worlds for the City, but I think it's a lot better than the situation that you have now. (4) The agreement, the proposed agreement, that we have sent to the County and that we found out today, but for two points, they're in aarppmpnt with, calls for the cancellation of the County franchise in the six months from the date that we sign the agreement. (5) It calls for the City to be a wholesale customer of the County and when you think about it, there's one of two ways to go: either we can continue to receive service with the Countv being a retail provider until we are ready to provide the services through our own systems,_ which is what we prefer, or you can receive it through a bulk_ arrangement, which is what the County is now insisting upon. And this wholesale arrangement would click in at the end of that six-month period, and the City would be the retail provider of utilities, and would actually render the bills. (6) And most importantly, would get to make decisions _without veto were IIN agreement. (7) Another provision would allow for the rE option immediately upon execution of the required. to buy._-GDU .under this agreement, a because there are some investigations that operability of the plants. Just to update Hartman's already been able to ascertain Y plants several years ago, these very plants, what their current price should be. or you're G !turn of the GDU purchase agreement. You were not s indeed you couldn't be need to be made of the the information that Mr. y having to analyze the as well as to determine (8) Another provision provides that rates to be charged by the County will be nondiscriminatory and based on a cost of service. We've actually asked, since April, for some data on what those rates would be and we're still waiting to receive that and I'm sure that we will receive that from the County eventually, and certainly before we sign the agreement, because we've called for the components of the rates to be attached to the agreement; we think that's a prudent thing for you to know, and for the City to know what they're getting into before you sign. (9) Finally, the agreement provides for the later transfer.of customer flows from the County sewer plant to the City sewer plant, and that's when the City is ready, when the City has capacity available and, so that the. County is not hurt, when the County has the ability to bring in another customer. And that can occur on a customer -by -customer basis. It doesn't have to occur all at once. (10) So those are the basic outlines of the agreement. And I think it's important at this point to analyze this agreement and ask yourself the question, "How does this stack up with the existing agreement you have with the County?" And I think that, again while it's not the best case that we could have hoped for, what we were initially led to believe by the County we could obtain, in fact, is still better off than the deal you have today. (11) Question from the floor: Why is that? (12) Attorney Cloud: Well, you're certainly no worse off because you're still going to be having the ultimate sewer service provided by the County. Notice I did not say water, and that's because right now, the County has no water service in the City. They have yet to run the first line to provide water service in your city. -2- AON (13) They are serving approximately 95 units of sewer capacity; considerably less than the original 2,000 that signed up to buy capacity; in fact, most of that capacity was turned -back in and only about 700 of those 2 000 remain outstandinqand not all of those people have actually put up their money. (14) So the demand appears to be less than what was originally thought by anyone on the system. The City's arguably better off under this arrangement because, unlike the existing agreement which requires you to be the enforcement arm of the County, when the County says, "Jump!" and the County says, "This is the assessment program that we want to place in the City --here's where we're going to serve now," under that agreement, you are required to do that. You are required to be the olicemen for the Count in enforcin mandator connection, interesting y, under the agreement for.both water and sewer, under that scenario. Under the new agreement, the decision goes back to you. The decision goes back to the City, and it's a decision that the City can then exercise based upon input from its citizens, without being overridden by a governmental entity outside of the City. (15) And, a second point, why are option. And I think that the GDL this City, because the one t ing t and it is the kind of thing while to acquire GDU, you will have the seek to acquire GDU, I think under rnntract_ual richt to acquire at you better off, you get back the GDU option is going to be important to Fe GDU systems have is expandability, this agreement does not mandate you ability.to acquire GDU and if you do vour franchise options, you have the negotiated quite wisely in 1981, and with that comes both water and, if you so choose, sewer. ility in (16 ) Now, the last item that I wanted to cover with you is two very recent phone calls that were made. I was, in an effort to try and find out where the County was with respect to what we submitted to them, I called up the County Attorney today, Charles Vitunac, and asked him, and he had indicated previously that the staff and Commissioner Scurlock were going to meet this afternoon. And I'm very pleased to report that with the exception of two items, they're in agreement with what we submitted to them. And the two items are these, and we talked about these two items with both Charles Vitunac and with Terry Pinto. We were able to reach Terry Pinto; we were sitting out there in the car talking with him up until about five minutes after seven; that's why we were a little late getting in. (17) But the two points are these: first of all, they would like for us to install the sewer meters. The way we had this drafted, they would install the sewer meters and bill us back for them through the rates. These sewer meters, and we believe that anywhere from three to five will need to be installed at each of the major pump stations, are fairly expensive items, and Mr. Hartman talked with Mr. Pinto about deferring the actual installation of those meters until they were 9RZ AIW.% �0=% really necessary. Some of you may know you can actually bill based upon water consumption, rather than using a sewer meter. In fact, it's probably more accurate to do that, because sewer- meters are not terribly accurate in terms of the metering business, and I believe that Mr. Hartman was successful in getting Terry to agree that we could work on that in terms of deferring when those meters were installed. (18) The second item dealt with the timing. In the meeting, we were originally told by Mr. Scurlock, and of course there were a couple of reporters there so this is something that is very easily verifiable, that they would like for us to take over everything in January, but yeah, he could go along with four months, and we suggested back that, "Well, what about six months - it's only two months more - the actual decision of the City getting into the business is being made when we sign the agreement, what's a couple of months among friends?" Mr. Vitunac said that now Commissioner Scurlock is saying something. entirely different, that he wants the City to take over in January, certainly no later than February, and get immediately into the retail business, which is different from what was said in the meeting to us. And I asked. Charlie to explain to me why it was bad for the County to go along with our six month suggestion. And he really was unable to explain that, and that's when he suggested that I call Mr. Pinto and speak with him. (19) And so I had Mr. Hartman, who is our engineer, contact Mr. Pinto and the truth is, Mr. Pinto, when we got down to discussing it, said that he really didn't have a problem with it. It really .wasn't that big of a deal tohim* L but -to Commissioner Scurlock it was a big deal_ with him. So we suggested, and I would like to suggest to you, that you have Mr. McClary ask for some time from the County Commission so that we can discuss this with the full County Commission and try and straighten this' one point out, and get it straightened out so that there's no more missed communications. That's been the one frustrating part about this agreement; they sav one thing and then all of a sudden,_ t just keeps changing and mutating. (20) We're very close to an agreement, and I think you should feel quite positive about this and Mr. Vitunac has been very above -board and has dealt straight up with us, and I have only good things to say about that, and I think that we're very close to an agreement. We're still missina a couple of exhibits. I think those will be worked out in due course. I'd be happy to answer any questions you have, it you think we're going in the right direction, or if you have some points that you'd like to cover. We'd be happy to listen to them. (21) Mayor Conyers: Aren't we supposed to have a meeting with the County? (22) City Manager McClary: We have a meeting set up with the County on the 26th that they specifically requested is going to be solely on the one subject of the Twin Pairs, because I had sent back and asked them -4- ^hk 00% if we could include other items on the agenda, as we had done in the past, and they felt that the Twin Pairs/CR 512 issue was of sufficient magnitude that that would occupy the entire meeting, so they chose not to include other agenda items. (23)Conyers: I've got a couple of questions. First off, well it's actually it's to let some people here in the City know what's going on: Number One, people in Park Place will be glad to know that they're not going to be included in this, in the City's utilities rate; also, we've never been told where we're going to get the money to pay for all this, because I noticed some questions here on the back, and I want you all to listen to this closely: mandatory connection, mandatory assessment on each parcel based upon benefit and County capacity for assessed parcels. What's gonna happen: we're gonna have to make this say a mandatory connection,and every parcel of land you own, regardless of whether you've got a house on it or not, you're gonna be assessed on that particular lot to help finance this sewer system. And as I've said in the beginning, and I'll say it again, start from scratch in the utility and not have any idea of how we're gonna pay for it, and letting the people that said it was a good idea for us to get into it be the people that also negotiate all these deals, is not the way to go. (24) We're looking at over $6,000,000, at least, in years to come, and we've never even heard the other side of the story about what questions that maybe someone else may have about the sewer and water that we're getting into. And in particular, I'm talking about Mr. John Little, who I have asked to talk to Mr. Cloud, and I understand he did, and I understand that Mr. Cloud was supposed to answer some of his questions; I don't.know if he's done that or not. I also want Mr. Little to appear here to at least let the public know some of the pitfalls of stuff we're talking about getting into down the road, such as in state health inspectors, running sewer plants, and God, the list goes on and on. (25) Another thing I'd like to challenge the City and the citizens here: come into City Hall, and I want you to read this book, this agreement, read all these agreements in our book that we've got for tonight, and see if you can figure out what we're doing. Step One goes to Step Two, and if we all do Step Three, we'll go to Step Four, and do RtRn A and B. and, oh aee, what a, mess! We have a problem right now with our police department. We've got a sewer system right now going right down by our police station, that we're having a problem with right now of getting hooked up with it, because it belongs to the County. The Health Department wants us to hook up because it's available. Some of the members of our staff don't seem to think that that's the way to go; that we should spend more money to put in a temporary situation and wait for down the road whenever we can get started on our sewer and water. -5- (26) In fact, I just think that I have nothing wrong with having sewer and water. I think we need that. We need that for growth in this City; it's absolutely imperative that we have it. But you can see the problems that are happening. We've already got major lines that have already been laid in this City. Sewer is available; it's here; most of the work has been done. We don't have to hash this thing out all over again, and I still say these engineers and these people up here are telling us how great GDU's plant is, and they have vet to have been on the property. (27) They have yet to have been on that property... let's see, now what are they, mindreaders? They can ride by and look at it and make an X-ray vision of it, and tell us how great this GDU property is! Well, I'm here to tell you what the County says, and I'll make a note what one of our councilmen said, "Why is it a good idea when the County wants to buy it, but it's not a good idea when we want to buy it?" When the County comes in here and takes the sewer system, they'll bulldoze that plant down out there. That's what they think about it. That's all I have. (28) Councilman Oberbeck: I have several items highlighted. I don't know if they're worth rehashing, but I again would question the integrity of the County when they stood here and said in a New York minute we could have it back. We've been paying you guys for the last few months. I look at the dates in this briefing document you've given me today, and I kinda find a lot of them hard to believe on the part of the County and some of the statements a are ma0e i , a Tey erein a position o service Oil- customers in our City on March 5 on,t think thatholds quite rue, a east from what I see. The six-mon per!_oU_,-7—read that also in he agreement and what the agreement means, and I couldn't understand myself why they shouldn't go along with a six-month period. They wanted to be cooperative. Unless that's part of the New York minute they talk about. As far as Park Place is concerned I feel that I would insist that Park Place be part of the negotiation, and that you look in the best interest of the City in negotiating it, because that.is part of the City, and we can't leave that a stepchild for the community. We represent the entire City, and I would hope that you would look out for our best interest in acquiring Park Place along with the rest of the system. (29) As far as a mandatoryconnection, it's not unusual; I believe it's law. If it passes within so many feet of your property, it's mandaied that you connect to it. I, for one, have six parcels or seven parcels of property in this community. Some of them are developed; some are not developed. I'm gonna have to pay because I think i•,:'s going to better the community. So I probably will be paying, to the best of my knowledge, seven times as much as you're paying, Mr. Mayor. But I think it's worth it. I think it's something we need, we can control our own destiny, we can bring in proper growth, and all the way down rdo the line, this thing from the County's thing we can do is throw it out. So I bringing this briefing document. been "bassackwards." The best appreciate what you're doing in (30) Councilman Holyk: Mr. Cloud, I have just a couple of quick questions. We've listened to one thing in the press, and it's. very convenient to have the press who's always there to hear how the County is willing to do anything and everything they can to help the City do this correctly. There are a.couple of questions that I have. Number One, it seems to me that. by the County mandating a date very near in the future for us to take, not what they said was what we felt would be best for us, but to take all or none does that seem to you to be an effort to overwhelm the possibility of us doing is correctl or is that fust -mv ma nat on could you speak to that for a moment, please? (31) Attorney Cloud: Well, you know, it's certainly not making it easy on us, is it? - (32) Councilman Holyk: It doesn't sound that way to me, and I guess that's what I'm asking., Is that the easiest way for us to do it? It doesn't sound that way to me. (33) Attorney Cloud: Well, it's not the easiest way for us to do it. I really can't speculate on what the County's motivations are for that, and would notwant to. I can just tell you that it's not the easiest way in the world to do that, and that a couple of extra months is not going to harm them, if their lawyer was unable to come up with any reason, in his discussion with me, how they would be harmed. Nor was Mr. Pinto able to come up with any reasons in his discussion with Mr. .Uartman, how the County would be harmed, and it just seemed to be _ emanating from Commissioner Scurlock, and it seemed like something that ought to be raised to the level of the County Commission, so that we could air this, because it's just one point in an agreement. It's something that they could give in on, that could help make this agreement work smoothly, for the benefit of the citizens of the City, who are also supposed to be County citizens. It seems like a point that could be resolved without harm to the County. (34) Councilman Holyk: I understand. (35) Attorney Cloud: I'm gonna yield to the vice .mayor for one question, at his request. (36) Councilman Oberbeck: You brought up the subject that I had written down, and neglected to read off. -7- (37) Councilman Oberbeck: Will we have adequate paper by then? The information that we're waiting to be afforded from the County? If they're talking January... (38) Attorney Cloud: We're still waiting for the exhibits._- The exhibits are supposed to have the components for the rates, and we've been waiting for them since April; well, I'm sure they're working on them and that will happen in due course (however long that means). (39)Councilman Holyk: I guess that should be amplified just a little bit, Mr. Cloud, whatever that means, due course? It's interesting how lt'S esterda and Wnen- 1L COIQCS a.0 wac ♦.v waA. �.. .. -- ---- ---- now. That's interesting due course. The other question I wanted to touch on --help me and make sure that I understood correctly --we're talking about flow diversion type meters with respect to sewage, and that this was one of the points on which the County was saying that the City should be kinda in charge of picking that up and making sure ...did I understand that correctly? (40) Attorney Cloud: Yes sir. (41) Councilman Holyk: Okay. The other half of my question then is, you started to refer to the conversation that Mr. Hartman just finished prior to the meeting, and the conversation was with Mr. Pinto, apparently there is agreement at least on Mr. Pinto's part that that could be deferred; it was not absolutely necessary. I mean, if there was a section that didn't require a specific year now, that that could be deferred... I'm sorry, please help me understand; I'm a little bit confused, Jerry. (42) Mr. Hartman: For the record, on the meter issues, my discussion with Terry Pinto tonight: if it's a force main system tying in just a ew more cus omers,, there's no need for a meter at this time. If there's a large subdivision that comes into sewer or major gravity interceptor system program that's built for 500 units or some large portion of the City, even if you may only have one or two customers coming into that large gravity system, once that gravity system is tied into the County pump station, they want the meter on the County pump station due to potential infiltration problems in that gravity system. Now, initially, we would not build a flow diversion facility because the force main system would have more than adequate capacity. That would be a more future metering system that you would do. So, yes, we believe we can work these things out on the metering issues. I think what we need to do also is gather the sources and uses on the cost and budget aspects. I concur with the Mayor's statement that you've got to know all the costs, and we are doing that with them, trying to get all the costs. We don't have them tied down for you because they haven't been provided yet. -8- 000%� Aalk� (43) As soon as they're provided, we will provide them to you so you will know the revenues and expenses, what types of charges are applicable to the City, what are not, which charges- we hand to our customers, what they will be billed for and won't be billed for...a very important part of this is that once you do have the control of this system, then we can sit down with the business community and work out how, in the commercial areas and industrial areas and homeowner groups, they'll be accommodated with their engineers in the most cost-effective manner. Not to dictate necessarily the specific programs to them, but working together in this community, making our own decisions for both blocks of services. (44) Councilman Holyk: While you're both standing, let me just ask this one question, because you can probably either one or both speak to this. In any of your discussions, has any, person among County personnels from the County Commissioners on down, given us a reason why they have not acquiesced to our Questions about the rate structures and put that into an exhibit, after all these months of asking? Have they given us a reason? I didn't ask for a good reason; a reason. (45) Mr. Hartman: Yes. They said that they haven't had a rate consultant look at that yet, and that the staff hasn't had time to get to it either. (46) Councilman Holyk: What kind of effort would that require? Can I have some idea? I mean, is this like 300 man-hours of work, or is this... (47) Mr. Hartman: Typically, the financial analysts for the Utilities Department should be able to pull this together. (48) Councilman Holyk: I understand. Thank you. I appreciate that. (49)Mayor Conyers: I want to make note there: you're talking about these rate schedules. It seems like all the discussion's been done and we should have known this before; we've spent all this money so far. That's one of my biggest gripes about this whole deal. We're gonna get so far down the road and have so much money into it, then you're gonna find out how much it's really gonna cost us. You should know this up front. (50) Councilman Holyk: Mr. Mayor, 1 agree with you, and I Lhi,ik that perhaps we should send the bill to the County for what we're gonna have to pay to get the answers to those questions. WIM (51) Councilman Holyk: I have one other question that I wanted to ask. In terms of Park Place, we heard two statements at this point. One statement was from the mayor, and that was that the residents of Park Place would be happy to know that they were being excluded; we're going to comment on that in just a minute. The other question, or the other statement, regarding that was that we did not want to make the residents of Park Place a "stepchild of the community." Can we look at that in terms of how does that whole issue tie into the water and sewer that we're talking about with the' County? - & (52) Attorney Cloud: I'd be glad to answer that because I would like to get some direction from the Council on this tonight...I feel it's necessary. I think it's an important point and I hope you'll recognize in the letter that I sent to the County, I did not say. the City would not take Park Place. That is 'a mischaracterization. What I said was that, based upon the lack of data that we got from theCountv (they didn'ty aet -any of the exhibits to it), I felt that I was not in a position to recommend to you that you step in and rescind an agreement that you have not even gotten everything dealing with the agreement. Indeed, I found out tonight that apparently the County is not pressing that point. But in the original draft agreement that we got from the County, the County asked us to assume their agreement that they negotiated with Mr. Nelson Hyatt, and take over that system. And the only reason that we deleted that from the agreement is that the agreement they attached to their draft was incomplete, there appeared to be some possibility of some liability there we were uncertain of. If there are no hidden liabilities in the rest of the agreement that we didn't receive, or any other side deals that may be floating out there that we, don't have a copy of, that just wasn't sent, that deal works like this: Mr. Hyatt sold the sgystem for $775,000,00, Now that c s the (53) Now, they didn't pay $775,000.00 on Day one. There's no clause in the agreement that says they pay this money over to the owner of the system. Why is that? Because they couldn't have afforded to. That system wouldn't support $775,000.00._ How did the owner get it back? I submit to you that he gett n paid back off the 13 of the customers in a way a we can't break. That's the sad truth of that deal. Whether the City owns it or the County owns it, the deal is what it is, and we can't change it. (54) Here's how he got paid. First of all, he got a break on the impact fees, and it's a break that puts every owner of a unit in that �omplex at a competitive disadvantage with the developer. Why is that? Because he got an exemption from having to pay impact fees for five -10- .-. 10M% years, so he can sell out all his units. Oh, 's no way the City can break that deal. I want you to that. (55) The second part of the deal is, they have a $10.00 surcharge that's been put on their rates, and that $10.00 surcharge lasts for ten years._ And -there -:aren't a whole lot of units in there. Now, I frankly don't know what the chances are of Mr. Hyatt ever realizing $775,000.00, based on what I've seen today,gven if you take all the .tap fees from that area and all the $10.00 surcharges. But you can't take that $10.00 surcharge off. It stays on there because it went with the purchase and sale of the system. We can't get rid of it. It's legally impossible without incurring massive sums of liability for the City. (56) The third deal was the land upon which the plants sat, which arguably was where the value of the assets came from, because the plants that were out there really weren't all that great. I guess the water plant's still providing water there.. (57) So the water plant's still out there, but the area that the sewer plant sat on, that land, if the County doesn't use it, goes to the developer. So he gets that land back and presumably, he can turn around and sell that land. So maybe with a combination of all those things, he does get $775,000.00. T e reality o a ea is, even i the City takes it over, even i you take it over and bring them into the fold, there's nothing we can do for them because of the deal the County's struck. They've basically acquired that system on the backs ^of the customers,_ and that's not an uncommon deal, and they're not insisting that we take it over, but if you feel, if the City feels, that we want to take it over, I don't think they'll object. I don't think they care that much. (58) They originally requested that we do take it over, and if it's vo,lr desire that we take it over, I would want you understand and go in with open eyes, there's not anything we can do in terms of changing that rate structure or the way the impact fees work. It's not a great deal. It's certainly not a good deal for the customers out there. One wonders what kind of deal would have been struck for the GDU system under that scenario. I don't know. But I do know that if we do agree to take on that system, that we ought to at least get the rest of the documentation. _who^ le city, -11- ,•MAk ,.., is it a small development? We've been told it's just that development, but I don't know. I aven't seen the documents. Was there a side deal, that said he got $300,000.00 out of their whatever? I don't know. Before I think I could recommend to you all that we take it over, Iwant to have due diligence done and have a statement from the County that t ere were no hidden facts that we didn't know about. I we could do that, if we could cover ourselves in that respect, then I'm not sure that it hurts the City, but I do want you to understand that there's nothing you can do for those customers. You can't drop their rates. That $10.00 surcharge was put on there by the County in that contract. (60) Councilman Holyk: I would hope that the residents of Park Place who may or may not understand the true nature of the deal would a least borrow this tape or et a written.transcript of it, because then they might understand. It certa n y makes sense. appreciate that explanation. Thank you. I think that's all I have at this time. (61) Councilman Reid: If anybody was listening, I think they just heard a real good reason why Sebastian ought to be in its own utility business. There's an example of just exactly the kind of a deal the County can strike, and I just don't think that we need anymore of that kind of foolishness. When Sebastian first entertained the thought of going into its own utility system, Mr. Scurlock and some other people were quoted in the newspaper as having said, "If you want -it, you've got it. You can have it this way, or you can have it that way. You just tell us what you want, and you've got it." It was in your newspaper. Sat right there during the meeting with us and said exactly the same thing. "If you want it, hey, you've got it." (62) Well, surprise, surprise! Sebastian took him up on it. And now what does he do,' you know? Now he doesn't want to deliver. All we've had is just a bunch of roadblocks, a bunch of reasons why, "Well, I really didn't mean that sort of thing." Okay. My problem is, where in the world is the rest of the County Commission. Since when is the County of Indian River bein run b one man? Anymore than this Council Sou a run y one man. I think it's time that the dealings between this City and the County Commission be brought before the entire Commission. I think that this is not the time for us to continue to deal with one or two people, either on the County staff, or one of the .County Commissioners. (63) Now, I'm shocked, really, at the lack of representation that we have had from our elected County officials. Not just on this item, but on some other items. Like Twin Peaks. (64) Comment from the floor: Twin Pairs, please! -12- (65) Councilman Reid: Okay. You know, where is our representation? Who is speaking for us? All we get is: Open your mouth, clunk, and down your throat it goes. Okay? This has happened on several deals now, and we're getting the same kind of soft-shoe dance on this item, and I think it's about time that this Council got together with the County Commission eyeball -to -eyeball and said, "Look, what's the deal, boys and girls? Where are you on this thing? Did you agree that one of your Commissioners should be dictating the policies of the entire Indian River County insofar as Sebastian getting into the water and sewer system?" (66) I think it's high time we did that, and'I would strongly recommend that this Council go on record of asking for a meeting eyeball to eyeball with the whole County Commission, and get this thing straightened out once and for all. I don't think we should go into this thing on an adversarial position. I think we should go into this thing wide open, and I think the County Commission should have enough sense to do the same thing, because this is not going to do the County Commission any more good than it's doing us, and I think they should know what's happening.. If they don't know what's happening, then we should make them aware of it. If they do know what's happening, then we should ask for a reason why. (67) Councilman Holyk: Did you have any other questions for -Mr. Cloud? (68) Councilman Reid: I don't have any more questions for him, and I'm sorry I kept you up there while I had to get fat off of my chest. (69) Mayor Conyers: I would like to say something just for the record, and let's be fair, Mr. Reid. The City of Sebastian City Council asked the County to come in here and do this sewer thing. They asked the County to come in here and do the Twin Pairs deal. Public hearings were set; people heard about this. Previous Council, by unanimous vote, voted for this, and the only problem we've had with it so far, is that this Council doesn't want it! And because this Council doesn't want it, it's gonna cost us a duplication of things that have already been done, more money's gonna be spent, and I think fair is fair. This whole thing came about because the City of Sebastian asked for it!!! Let's get that clear. I live here, I pay taxes here, but I believe in fair. What's fair is fair, and what's right is right. And I don't believe that it's been SHOVED DOWN OUR THROATS! Because, how coulo something be shoved down our throats when we told them to come in here and do it in the first place? (70) Mr. Cloud, do you have anything else? -13- (71) Attorney Cloud: I wanted to try and answer some of the questions, and I assume they were questions and not just statements in the abstract. One dealt with Park Place. I think we've answered that one. With the financing, it's very common to finance these agreements with revenue bonds; there also are some grants available we think we can qualify for. Number Three: there's a lot of misconceptions about mandatory connection. You know, when I first started practicing law, I did (?) mandatory connections, so I happen to know quite a bit about it, including the fact that there's no case in the United States that says you can enforce mandatory water system connection on existing homes. (72) I can tell -you this. Right now, if the County says, •"Jump, mandatorily connect these people out here," you can't do a thing about mit. You're stuck. But with an agreement that allows you to be the retailer, you can do something about it. You can make a decision if the people say they don't want it, not to build the pipe. if you don't build the pipe, there's no mandatory connection. That's the law in Florida. I think that answers that question. (73) With respect to Mr. Little, Mr. Hartman was asked to contact Mr. Little. I believe Mr. Hartman can address in great detail the discussions he's had with Mr. Little. If you're interested in hearing. (74) Councilman Oberbeck: Before Mr. Hartman gets to Mr. Little, could I just address something on this mandatory connection? (75) Attorney Cloud: Yes sir. (76) Councilman Oberbeck: Okay. The Mayor commented that the County has stated, or will grant the practice, of nonmandatory connection. I would defy anyone to go to the County and apply for a fence permit if a sewer line is within a thousand feet of yourproperty, because the first place you're sent is the Utilities Department, And if sewer's in that neighborhood, you ain't getting a permit until you connect to the sewer. (77) Attorney Cloud: I agree with that. I have no problem with that at all. That's not the mandatory connection I'm talking about. (7u) rn„nr,;.lman Oberbeck: Well, that is mandatory. They've got you. You ain't improving on your home. (79) Mayor Conyers: If they've got a sewer plant out there by your house, then sure. I'm saying that there's no way we can operate this City without having a mandatory connection. Your definition of mandatory lacks a lot as far as I'm concerned, because mandatory means, "mandatory, you will do." -14- � AM% (80) Councilman Oberbeck: Mr. Cloud, I'm just stating that I don't object to a mandatory connection, because it's beneficial to the entire community, and that's what we have to look out for. .That's what we're elected to represent. Now if we can do a mandatory connection with a federal grant from HUD, Farmer's Home, or whoever it might be, at 50% of the cost that it's gonna cost me to do it through the County, then I'm definitely in favor of it. (81) Mayor Conyers: All these people who reserved capacity are hollering now because they're getting charged and they're not using their capacity. Wait till they get their lots down here and have to pay on an empty lot. Then, Mr. Mayor or Mr. Vice Mayor, let's see what you tell them! (82) Councilman Oberbeck: Well, I own vacant lots, too, Mr. Mayor, and I can't wait until... (garbled speech) (83) Mr. Hartman: ...t hose people who reserved capacity, the situation richt now is, they only paid for 20% of the cost. Another 80% will be (84) Mayor Conyers: They reserved that capacity. My point is, these people are complaining they're not hooked up, and they're being charged. And these people will complain about that when the City comes in and makes every lot in this City divided, whether you have anything on it ... whatever you're doing, you're gonna be paying for this. Each separate lot. (85) Now don't shake your heads at me, because you have not come up yet with an idea how we're gonna pay for this whole system. You've talked about maybe we might be able to get some bond money. I have a hard time finding that to even be a viable solution, because I think that when it gets down to us looking for bond money, with what we have to work out of them (?) I have another problem. (86) Mr. Hartman: Thank you.. I didn't mean to be argumentative at all. All I'm trying to do is advise you. You were asked if we did meet with Mr. Little; we did, and it was a very good meeting, about three hours. He's a fine person, a quality person, and I think that when you talk to him you'll see that he had an excellent meeting with ::s. and we're aoin4 to continue our discussions because we have a few more points to talk about, and I'd rather reserve any staff's.report of this until that time. He will then follow up and finish the report; he is doing so, and I think he was enlightened quite a bit about the situation because he talked to you both. The County and us at the same time. (87) Councilman Oberbeck: When you get done talking to him, I've got a fellow I met in Germany you can talk to, too. Maybe he can enlighten US. -15- r (88) Mayor Conyers: That's the kind of thinking we have up here. (89) Councilman Oberbeck: Mr. Mayor, I think for myself. I didn't need Mr. Little to pay for me. In fact, I may be furnishing this Council with some documents with regard to Mr. Little's background. (90) Mayor Conyers: I don't have any problem with anybody standing up here and telling something about this system, because all we've heard so far is, "We may be able to do this, we might be able to do this"; we've already thrown out $40,000.00. (91) Councilman Oberbeck: We can stand back and let somebody else do it all for us, and we can pay them. (92) Attorney Cloud: If I. could, the.one thing that I did want some direction from you all on was on Park Place, because I think that's. really in your hands. That could go either way. (93) Councilman Oberbeck: Well, Mr. Cloud, I stated my position. I just feel that those people ... we do represent those people... they are part of our community, and I'm not in favor of giving away the farm. I know Park Place could be a little detriment to us, but the fact is that those people that come before us have stated that they wouldn't care if they even had to pay a couple of dollars more, rather than be controlled by the County. That was the position . of the representatives; I_believe it was Mr. Pitiak who stood before this Council last year, or earlier in the year. (94) Attorney Cloud: so, your position would be, if I may take the liberty. of stating it, that assuming we can get the necessary assurances of what the liabilities are, you'd be in favor of including it in the agreement. (95) Councilman Oberbeck: Yes sir. (96) Mayor Conyers: if this City Council wants to do something for them, let's drop the franchise fee and the utility tax. That ought to help out a little. (97) Councilman Holyk: How are you going to drop it? You just said it's 9.11enel.. Is that riaht? ,We can't drop the franchise fees, even if we take them over. (98) Attorney Cloud: Well, are they paying a franchise fee now? They're County. I guess the County's paying a franchise fee. But if we take them over, they're gonna pay a franchise fee... they'll be your customers. -16- n (99) Mayor Conyers: I would assume that you would know this information. (100) Attorney Cloud: I just told you! (101)Mayor Conyers: You don't know who has the franchise .fee ... the County or the City. (102) At Do either of the rest of you have a feeling about Park Place? I would like to... — (103) Councilman Reid: I don't want to make a decision on that until you get all the information that we need to make a logical decision. This business of shooting from the hip and saying, "Oh, hey, let's do something for those people!" Well, we have to find out what we can do for them and what kind of liability we're going to assume for the rest of the City of Sebastian. So until we get the information, I'm not going to make any kind of decision to tell you either yes or no. (104) Mayor Conyers: Absolutely. I agree with that 100 percent. That's what I've always hollered for. Get all the information. (105) Councilman Oberbeck: If I may, George, part of my statement was to do it. If he had to pursue it, pursue it in the best interest of the community. Now, they (?) gave away the farm. I would hope that they would come back and afford us the rest of the information when he can acquire it. (106) Attorney Cloud: I'll request the rest of the information... (107) Councilman Reid: If you're successful in getting it from the County, lots of luck. (108) Councilman Oberbeck: ...but I don't want to leave them out of the overall program. (109) Councilman Holyk: No, I agree that they're citizens, and we don't want to leave anybody out of any program. Obviously, they're under a different franchise agreement is what I understand, from where it stands right now. (110) Attorney Cloud: Well, they're covered by a Purchase and Sale Agreement that defines their rights. (111) Councilman Holyk: Jerry, you had something to add to that. -17- (112) Mr. Hartman: We are requesting your permission to go out to the business community and other people who have asked for us to talk to them, and discuss the sewer programs and the interception of the preliminary design; type of a very conceptual design, prepared in the City and for the City, and those types of things. Looking at sewer combinations and when we're going to have a couple of meetings with those people. (113) Councilman Holyk: As far as I'm concerned, no, not only am I not opposed to it, I urge you to do that. That's my opinion. I can't speak for the whole Council, but that's my opinion. (114) Councilman Reid: Who's gonna pay for the time? Are we gonna pay for that time? (115) Councilman Oberbeck: sof course you're gonna pay for it. Community service, George. (116) Mayor Conyers: They're not gonna do it for nothing, I can tell you that. (117) Councilman Reid: I just want to make sure that somebody who comes later and says, "Look at all the money we spent!" I think -it's money well spent... (118) Councilman Holyk: You're still doing it for the community... (119) Councilman Reid: The community needs a lot more information, and if you can give that to them, great, but I just want everybody to know. (120) Councilman Oberbeck: To protect everyone concerned, will this be a published type meeting? Would you meet here one night with the local Chamber of Commerce, or how are you gonna...I don't want to give you, I like you guys, but... (121) Councilman Holyk: Yeah.. Carte blanche is not part of the deal here. (122) Mr. Hartman: To my knowledge, there have only been two groups that have contacted us that wanted... (123) Councilman Oberbeck: Who were the two groups? (124) Mr. Hartman: One was Clay Price's group. (125) Councilman Oberbeck: Forget about that one, who's the other one? (Laughter) Talk about somebody interesting. IM (126) Mr. Hartman: The Park Place group... (127) Councilman Oberbeck: Could we not let them come -in here, and you guys have a meeting right here or at our community center one night, so we don't go broke? I mean, a community meeting ... one night! (128) Mr. Hartman: If there's too many people, it would be very difficult to accomplish a lot and... (129) Councilman Holyk: 'But by the same token, it may also answer questions that you wouldn't have to repeat, so that there is validity of doing that. I think if it gets out of hand, and that becomes obvious where you have people standing on Main Street waiting to get up here and speak, I think it's obvious that that's not gonna work, .then you can begin to consolidate people a little bit by a specific spokesman for a larger group of people, but still it may not be unwise to at least try that. (130) Councilman Oberbeck: Pete, was it not effective the night we opened up the community center and had the County up to answer questions to the public? Will you do the same thing here? That's big enough to accommodate both groups with no problem. Just schedule a meeting one night and that's it, and we'll pay once. (WSEBMTG.CEW):cew -19-