The URL can be used to link to this page

Home My WebLink About1992 - CorrespondenceCity of Sebastian POST OFFICE BOX 780127 a SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 M E M O R A N D U M DATE: January 7, 1992 TO: Robert McClary City Manager FROM: W.E. Conyers Mayor RE: Proposed Water & Sewer It seems to me that by now our special engineer and lawyers could give some answers to these questions. I would like to hear them. Where will sewer plant be built? I don't think present GDU site would be big enough for 10,000 + residents and future needs. What will we do with effluent? I believe that mandatory hook-up will be needed. What are costs to customer? What kind of city staff will be needed and at what cost? What will it cost to bring GDU up to standard? What will be engineering costs for GDU and rest of city? Where will the funds come from to finance this project and how much will that money cost us in attorney fees or hidden costs? What will we use for collateral to secure loans? These and other questions should have been answered long before we got started in this project. cc: Reading Board City Council Members BOA,' OF COUNTY COMMISSIO.A S 1840 25th Street, Vero Beach, Florida 32960 Telephone: (A07) 567-8000 February 3, 1992 Robert S. McClary City Manager City of Sebastian P.O. Box 780127 Sebastian, FL 32978 Dear Robb: Suncom Telephone: 224-1011 As discussed, in response to your January 24, 1992 request, enclosed is a copy of the September, 1991 Independent Evaluation and Update of the Water and Wastewater Fee and Rate Study prepared by CH2M Hill. After you and the City's consultants have had an opportunity to review this report, please contact me in order that we may expeditiously schedule another negotiations meeting. The County is anxious to finalize the negotiations and proceed with the implementation process. Sincerely, James E. Chandler County Administrator JEC/mg xc: Doug Scurlock Joe Baird Terry Pinto Charlie Vitunac J. CHARLES GRAY OOROON H. HARRIS RICHARD M. ROBINSON PHIL41P R. FINCH PAMELA O. PRICE JAMES F. PAGE. JR. WILLIAM A. BOYLES THOMAS A. CLOUD BYRD F. MARSHALL, JR. J. MASON WILLIAMS, III LEO P. ROCK. JR. O. ROBERTSON OILG CHARLES W. SELL JACK A. KIRSCHENSAUM JAMES W. PEEPLES = FORREST S. FIELDS, JR. GRAY, HARRIS & BCIBINSON PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW SUITE 1200 SOUTHEAST BANK BUILDING GLASS BANK BUILDING 201 EAST PINE STREET 505 NORTH ORLANDO AVENUE POST OFFICE BOX 3068 POST OFFICE BOX 320757 ORLANDO, FL 139002-0060 COCOA BRACH, FL 08936-0767 TELEPHONE (407) 843-8880 FAX (407) 244.5890 4 JAN N Received CRY Mono t Office LCOS TELEPHONE (407)703-2210 FAX (407) 793-2297 WRITERS DIRECT DIAL PLEASE REPLY TO: Orlando January 13, 1992 Mr. Charles P. Vitunac Indian River County Attorney 1840 25th Street Vero Beach, Florida 32960 THOMAS C. SHAW PAUL J. MOKRIS ALAN R. BUTTERWORTH DEBORAH S. HERNANDEZ PAUL S. 0UI NN, JR. DAVID L. 5NICK JACK K. MCMULLEN ORLANDO L. EVORA SUSAN O. TASSELL FREDERICK W. RICHARD$ RICHARD E�BURKE LORI R. BENTON ANTHON" J. COTTER TRACY A. BOROERT JOHN B. SHOEMAKER LISA J. FRANK' MICHAEL K. WILSON MARK S. WALKER LILA 1. M.HENRY MALCOLM R. KIRSCHENSAUM OF COUNSCL NEMBE. OF New YORK AND CONNECTICUT RAR. ONLY VIA FACSIMILE 407/770-5095 RE: Interlocal Utilities Agreement between Indian River County, Florida and City of Sebastian, Florida Dear Mr. Vitunac: Pursuant to your referenced Agreement, fourth line of Section "Class I customers." /jlm 40107-1 (IRC) Attachment request for a revision to page 9 of the above attached is a copy of the revision to the 7.2 to read "Class II customers1, rather than Sincer yours, J net L. netto ecretar Thomas A. Cloud, Esquire GRAY, HARRIS & ROBINSON, P.A. cc: Thomas A. Cloud Robb McClary (w/enclosure) 7.2. Effective on the Cancellation Date the CITY shall become the utility service provider for all classes of customers within the City limits and shall, as part of this duty, provide collection systems for Class II customers in a manner such that the interests of the Class II customers will not have been harmed by the revocation of the COUNTY franchise. The COUNTY agrees to develop a nondiscriminatory, cost -of -service rate to be charged to the CITY for treatment of the wastewater which rate shall take into account the fact that the CITY is the utility service provider for all classes of units within the CITY. The rate and components which make up this rate are.depicted in Exhibit "C" attached to and incorporated in this Agreement. The CITY reserves the right to become a wastewater treatment provider also for any or all units within the CITY subject only to the rights of the COUNTY as described in paragraph 8. 7.3. Upon installation and acceptance, the metering equipment shall become the property of the provider, and the provider shall be responsible for the operation, maintenance, and replacement of the meter. The provider shall read the meter for billing purposes. The metering equipment shall meet the stand- ards of the American Water Works Association ("AWWA") for accuracy, which is plus or minus three percent (3%). The purchaser may request an accuracy test by the provider without charge once during any twelve (12) month period. The purchaser may witness the test. Additional testing may be requested by the DATE: TO: City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 0 FAX (407) 589-5570 M E M O R A N D U M January 13, 1992 W. E. Conyers, Mayo FROM: Robert S. McClary RE: Proposed Water & Sewer This is in response to your memorandum to me dated, January 7, 1992 in which you asked several questions about water and sewer. 1. 9'Where will the sewer plant be built? I dont think present GDU site would be big enough for 10,000 + residents and future needs". ' Response. The City would acquire the wastewater treatment plant currently owned by General Development Utilities ("GDU")located near Schuman Lake. This plant is currently operating at less than 50% capacity. Additionally, the proposed Inter -Local Agreement with Indian River County would provide that wastewater flows be diverted to a County owned facility and that the County would provide for transmission and treatment of wastewater. Should the City continue to purchase transmission and treatment services from the County, we may never need to build our own sewer plant. Should the City wish to expand the GDU plant, the present site could accommodate a plant expahsion for some 15,000 E.R.U.'s (3,750,000 gpd @ 250 gpd-�ERU with off-site effluent disposal. However to expand to 3.75 MGD with Class I reliability would require a significant amount of site work. Re: Proposed Water & Sewer 2. 4. I'What will we do with effluent"? Page #2 Response. Currently, at the GDU sewer plant, secondary effluent is discharged to percolation ponds on site. Since the plant is operating at less than 50% capacity, these percolation ponds would continue to be used for some time. As the plant is expanded, the effluent would be disposed of off site in the form of re -use water for irrigation at facilities such as the municipal golf course, residential/greenspace irrigation, etc. III believe that mandatory hook-up will be needed. What are costs to customer?1I Response. No one has proposed mandatory hook-up and whether or not there will be mandatory hook-up will depend upon the policy established by the City Council. Currently, the GDU water franchise calls for mandatory hook-up but this has not been enforced by the City for many years due to a legal opinion issued by the City Attorney (which was based on a Port St. Lucie Court Ruling) that a municipality cannot mandate a hook-up to a private utility. However, we do believe that a mandatory hook-up is permissible for a municipality owned utility. Currently, Florida Law mandates connection to a public sanitary sewer if one is available. A likely scenario for water connection would be a policy mandating a connection to the public water system for new construction and allowing, but not requiring, the connection of existing buildings. The connection costs, like the rates, will be set by the City Council and will depend upon the rate making philosophy established by the City Council. Typically, connection charges are based soley on the expense of connecting to the water or sewer main and setting the meter. "What kind of city staff will be needed and at what cost?" Response. The City will probably attempt to hire the current GDU operating personnel, which at this time consists of three (3) licensed operators. The number and classification of operators will be commensurate with the type and size of system and the operator licenses are established by the FDER permit. However, GDU's billing, collection, accounting and management are not done in Sebastian. Therefore, we will need sufficient staff to do these functions. Initially, I think the City will need a Utilities Director with clerical support and an additional computer operator in Finance. However, staffing levels and compensation will depend upon the City Council and, in large part, be the result of the collective bargaining process with the City's unions. Re: Proposed Water & Sewer Page #3 5. "what will it cost to bring GDU up to standard?" Response. The total system costs are outlined on page 5- 18 of the Hartman Report, which I have attached. Additionally, the Hartman report recommends line extension financing of two million dollars. 6. "What will be engineering costs for GDU and rest of City?" Response. Engineering costs, including construction administration will typically cost 7.5%-10% percent of construction costs, and depends generally on size and complexity of the project. 7. "Where will the funds come from to finance this project and how much will that money cost us in attorney fees or hidden costs?II Response. The source of funds is outlined on page 5-20 of the Hartman Report, which I have attached. This page does not detail attorney fees or hidden costs. 8. "What will we use for collateral to secure loans?1I Response. Financing programs are identified in the Hartman Report in Section 5.7 and include transfer of wastewater capital charges,, wastewater capacity sale, water system capacity sale, system extension/connection capital fund, Farmers Home Administration, Florida Bond Loan Program, Florida League of Cities Pool, commercial bank loans, general obligation bonds, private placement bonds, or water and sewer system revenue bonds. The collateral for most of these programs will be the utility system revenues. However, the ultimate financing will depend upon policy of the City Council. Should you need additional information, will you please call? /jmt J Attachment cc: SebastianC@i,.1,791 Council Members TABLE 5-5 PRELIMINARY ESTIMA'T'E OF CAPITAL REQUIREMENTS CITY WATER AND SEWER SYSTEM Description Estimate Component Total Estimate WASTEWATER Purchase of County Sewer Facilities $414,000 Expansion of Wastewater Treatment Plant to 0.6 MGD (Public Access) 790,000 Expansion of Effluent Disposal Facilities to 0.6 MGD 675,000 Flow Diversion Pumping Station (2.0 MGD Capacity) 255,000 Contingencies 211,000 Subtotal Wastewater Transmission, Treatment and Effluent Disposal $2,345,000 WATER Wellfield Expansion to 1.4 MGD $160,000 Water Treatment Plant Expansion to 1.342 MGD - 700,000 Water Storage and Transmission Improvements 300,000 Contingencies 116,000 Subtotal Water Supply, Treatment and Transmission $1,276,000 Acquisition of GDU, Water and Wastewater 2.000.000 Subtotal $5,621,000 Program Contingencies 562,000 Total $6,183,000 Rounded $6,200,000 GCI-I/ch R4/91-064.00/Table5-5 5-18 TABLE 5-6 PRELIMINARY ESTIMATE OF CAPITAL SOURCES AND USES CITY OF SEBASTIAN, FLORIDA Description USES Program Capital Costs Line Extension Financing TOTAL CAPITAL NEEDS Preliminary Estimate $6,200,000 --1.000.000 $8,200,000 SOURCES Capital Revenue From 2,000 ERU's Presold Wastewater Connections(I) 2,400,000 Future Capital Revenue From 1,000 EIZU's Wastewater System(l) 1,331,000 Future Capital Revenue From 3,000 ERU's Water System(2) 3,642,000 Line Extension Capital Recovery(3) 2.000.000 TOTAL CAPITAL REVENUES $9,373,000 Notes: (I) Based upon $1,200 per ERU for wastewater transmission, treatment and effluent disposal and the GDU rate schedule; not the over $1,400 and increasing County rate. (2) Based upon the existing GDU water impact fee of $1,214 per ERU. (3) Based upon full recovery of line extension capital financing. GCI-I/ch 41' R4/0I-064.00rl'^Illc5-6 5-20 I l Mr. Robb McClary O&A City Manager a City of Sebastian P.O. Box 780127 0 Sebastian, Florida 32978 RE: Next Phase of Work Dear Robb: As we discussed last week, the next phase of work in this matter will involve research analysis in preparation of any ordinance regarding rate regulation and CIRC, together with the preparation of the preliminary resolution before the first Chapter 180.301 hearing. We are also getting close to exceeding the $30,000 allocated for the negotiations between Indian River County and the City of Sebastian. Therefore, for completion of the negotiations and completion of the next phase as outlined above, I estimate it will take between $20,000 and $25,000. Please call me if you have any questions on this matter. Sin rely yours, Thomas A. Cloud, Es GRAY, HARRIS & ROBINSON TAC: jlm A. ;r6' // y /// GR AY, HARRIS & R0BI1STS0X J. GRAY PROFESSIONAL ASSOCIATION THOMAS C. SHAW GORDON H. HARRIS ATTORNEYS AT LAW PAULALAN J. MONRI6 ICHARH. RICHARD M. ROBINSON ALAN RBUTTCRWORTH PHILLIPAMELA R.0 FINCH DE2 NAND M. PAMELA O. PRICE SUITE 1200 PAULS.DEBORAH I JR, PAUL S. OVIN N. JR. JAMES F. PAGE, JR. DAVID WILLIAM A. BOYLES SOUTHEAST BANK BUILDING GLASS BANK BUILDING F. JACK R. MCMO LLEN cMULL THOMAS A. CLOUD 201 EAST PINE STREET 505 NORTH ORLANDO AVENUE ORLANDO L. EVORA BYRD F. MARSHALL, JR. SUSAN D. TASSELL J. MA50N WILLIAMS. IQ POST OFFICE BOX 3068 POST OFFICE BOX 320757 FREDERICK W. RICKARDS LEO P. ROCK. JR. RICHARD E. BURME G. ROBERTSON DILG OR"ND0, FL 32602-3063 COCOA BEACH, FL 32932-075T LORI R. SENTON CHARLES W. SELL ANTHONY J. COTTER JACK A. KIRSCHENSAUM TELEPHONE (407) 843-BBBO TELEPHONE (407) 763-2218 TRACY A. BORGERT JgMES W. PEEPLES SII FORREST S. FIELDS. JR. FAX (407 - ) 2445690 FAX (407) 783-2297 JOHN B. SHOEMAKER LISA J. FRANK' WRITERS DIRECT DIAL MICHAEL K. WILSON MARK S. WALKER LILA 1. McHENPY MALCOLM R. KIRSCHENBAOM PLEASE REPLY TO: OF C...BEL MCNOCP OF NEW Y wND CONNEC ICVT ..RS ..I Orlando February 12, 1992 y31920�� 1� Mr. Robb McClary O&A City Manager a City of Sebastian P.O. Box 780127 0 Sebastian, Florida 32978 RE: Next Phase of Work Dear Robb: As we discussed last week, the next phase of work in this matter will involve research analysis in preparation of any ordinance regarding rate regulation and CIRC, together with the preparation of the preliminary resolution before the first Chapter 180.301 hearing. We are also getting close to exceeding the $30,000 allocated for the negotiations between Indian River County and the City of Sebastian. Therefore, for completion of the negotiations and completion of the next phase as outlined above, I estimate it will take between $20,000 and $25,000. Please call me if you have any questions on this matter. Sin rely yours, Thomas A. Cloud, Es GRAY, HARRIS & ROBINSON TAC: jlm A. ;r6' // y /// Capt. Hr`vn's SEBASTIAN INLET MARINA Home of the "World Famous"River Raw Bar Waterfront Banquet Facilities • Catering Service N February 14, 1992 N AA Department of Community Affairs .9�S[tiLEIZ� Division of Resource Planning and Management Bureau of Local Planning 2740 Centerview Drive Tallahassee, Florida 32399-2100 Attn: Robert Pennock, Chief Re: Docket #: 91-2-NOI-3105-(A)-(I) Dear Mr. Pennock, 0 As a business owner in the Town of Sebastian, I am concerned with a position the current City Council has taken relative the supply of public sewer and water to our city. When the Comp Plan was being put together, the City took the position that the County was to supply sewer and water in cooperation with the City. In fact, part of the sewer system is operational and county water was to follow soon. Recently, the City has taken the position that they do not want the County to supply sewer and water to the City as they are going to undertake the effort themselves. This action is a natter of public_ record, and I have in fact asked that the City contact the DCA regardin, the DCA's position on this matter. it is my understanding that the City's Comprehensive Plan has to adequately address the s::pply of sewer and water services before the plan can be approved. At this point, I do not believe the City has given you proper notice about their intentions to cancel the existing water and sewer franchise arrangement with the County. Consequently, no set time frame can be established at this point regarding the availability of sewer and water for our community. In all likelihood, the supply of these most necessary, services could be delayed indefinitely. By Car: 1505 Indian River Drive, Sebastian, Fl. 32958 By Boat: Marker 66 on the Intracoastal Waterway Phone: (407) 589-4345 FAX: (407) 589-4346 Capt. Hi a's SEBASTIAN INLET h74R11VA Home of the "World Famous- River Raw Bur Waterjrant Banquet Facilities • Catering Service Mr. Robert Pennock, Chief February 14, 1992 Page 2 I thought it my responsibility to notify the DCA regarding this issue as to the best of my knowledge, neither the City nor their consultants have bothered to advise your agency of their intent to cancel the current sewer and water arrangement with the County. Sincerely, 7::] H. Collins, President cc: Rob McClary, City Manager .-� City of Sebastian By Car: 1606 Indian River Drive, Sebastian, FL 32958 By Boat: Marker 66 on the Intracoastal Waterway Phone: (407)589-4345 FAX: (407)589-4346 HAR.t MAN & ASSOCIATES, INC.. engineers, hydrogeologists, surveyors & management consultants February 18, 1992 HAI #91-174.00 Mr. Robb McClary, City Manager City of Sebastian City Hall P.O. Box 780127 Sebastian, Florida 32978 Subject: City Council Meeting on March 11, 1992 Dear Robb: This letter confirms our conversation in which the City Council meeting was moved to a tentative date of March 11, 1992, for the following reasons: 1. Rob Ori's completion of the analysis of the interlocal rate and discussions with CH2MHill and subsequent follow-up meeting with Indian River County regarding the contract. 2. Execution of the contract. 3. Scheduling of Gerald C. Hartman and Thomas A. Cloud conflicting with February 26, 1992 City Council meeting. Tom, Hal and I will all comment on your staff report and provide input in the very near future. Very truly yours, Hartman & Associates, Inc. 4Gerald C. man, P.E. Presiden GCH/ch cc: Tom Cloud, GHR Hal Schmidt, HAI Rob Ori, HAI 201 EAST PINE STREET • SUITE 1000 • ORLANDO, FL 32801 TELEPHONE (407) 839-3955 • FAX (407) 839-3790 PRINCIPALS: JAMES E. CHRISTOPHER • CHARLES W. DRAKE • GERALD C. HARTMAN • MARK I. LUKE • MARK A. RYNNING • HAROLD E. SCHMIDT, JR. City of Sebastian POST OFFICE BOX 780127 o SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589.5330 o FAX (407) 589-5570 February 19, 1992 Mr. Thomas H. Collins President Collins Investment Company 9301 A -I -A, Suite 4 Vero Beach, FL 32963 Dear Tom: This is in response to your two (2) letters regarding future water service to Captain Hiram's Sebastian Inlet Marina. The proposed interlocal agreement between the City and Indian River County does not address water service except to terminate the County's franchise to provide water service inside the City of Sebastian. Water services were addressed in a different manner than sanitary sewer services since neither the City nor the County has any water lines in the City. I understand that Indian River County has plans to extend its water service to the unincorporated portions of North Indian River County. To that end, the County plans to construct a water main within the Indian River Drive right-of-way through the City and past your business. We understand your concern that Captain Hiram's should be connected to a public water system at the earliest available date. Should County water be available before a City line is constructed in that area, I can assure you that the City will work with Indian River County and attempt to reach an agreement whereby your property could be served with County water during the interim. I have always found the County to be cooperative with the City of Sebastian and, like us, I am sure they are sensitive to your needs and understand your concerns. In your January 3, 1992 letter you state that you had some sort of understanding with the City that the County would provide you with water in the interim period when the City is developing its own utility system. I am unaware of any agreement or representations by the City that would support your assertion. However, I will assure you that the City is concerned and understands your desire for public water service to Captain Hiram's and we will extend our fullest cooperation to Indian River County to allow you to connect to the County water main if it is available first. AON Mr. Tom Collins February 19, 1992 Page #2 Indian River County has pledged to work with the City both in the near and lopg term. However, since neither entity has any water facilities within the City, neither City nor County felt it appropriate to address interim water services. Sincerely, (ebe'r't6S Cl(/ry City Manager RSM/jmt cc: W.E. Conyers, Mayor & Sebastian City Council James Chandler, Indian River County Administrator .. Capt. H, n's SEBASTIAN INLET MARINA Home of the "World Famous' River Raw Bar Waterfront Banquet Facilities a Catering Service January 3, 1992 Mr. Rob McClary, Manager City of Sebastian 1225 Main Street Sebastian, FL 32955 Dear Rob: �6� g 910117? N JAN 1992 Received ft Maneger't Office I just received the enclosed note and sketch from Cindy White, who is Terry Pinto's secretary. You will note that the county "are not going to serve Sebastian with any water". This is contrary to my understanding with the City, as I have been assured that the county would provide us with water in the interim period when the City of Sebastian is developing their own utility system. I would appreciate your written comments regarding this issue as obviously it is of great concern to us at Capt. Hirams. As I mentioned on numerous occasions, we have always relied on prior agreements that the City has made with the County that assured us water would be forth coming immediately after sewer service. Further delays could prove disastrous to our business. Sincerelv, Thomas H. Collins President THC:jh encl. cc: Mayor and City Council Jim Hoffman Martin Carter By Car: 1606 Indian River Drive, Sebastian, FL 32958 By Boat: Marker 66 on the Intracoastal Waterway Phone: (407) 589-4345 FAX: (407)589-4346 ,.%k December 31, 1991 Mr. Collins: Terry Pinto asked that I send you this note that all water lines shown on the attached drawing are to go around Sebastian. At the present time, we are not going to serve Sebastian with any water. c6A A"" Cindy White Secretary NO1TVLN3W3ldVY1 NIVVY NOISSIWSNVHI (^�. 4 -b 3anqu O3SOdOad AiNnOO HlaON .'c, L a 't 'BOdUl S5 1t�V38 OV3 ��jj i • llbbOO j 1 � µ 119' �„�„} _ _,___ f- • � _ -•� — �--�-± �. 94 _ Y IZ �'ZL9L —1124 = 1 - 9t 1 let` Fa - 94 ,s i5. 1 rc •_� 110Z lloa -A NOIIISNVU 3215 3ZIS did i- £ 3Jd�,jJjd. rn vrI15r83S \ y, r '\4_ - _�i 7. 3Sb11'd s = t is �\ � 5• � \ �� 5 r �a ,' MIMI ;let n,� -- 6N3933 I F, PL, ,1 t COLLINS INVESTMENT C December 3, 1991 Mr. Rob McClary, Manager City of Sebastian 1225 Main Street Sebastian, FL 32958 Dear Rob: //, -�� OEC 1991 �; W `�� CeBers \ (P I see where the sewer and water issue is becoming more and more complicated. As you know, my position has always been that we should allow the county to complete the sewer and water facilities as per an agreement worked out with a prior City Council and the County Commission. of particular concern to us at Capt. Hirams is the availability of water. We expensed considerable sums and expanded our organization based on the fact that county water would be available approximately one year after the availability of county sewer. In talking with the county we find that the main county water line will be running right by our property in the very near future. We are told that we would be unable to hook into the line due to the City's recent position to cancel their franchise agreement with the County. We felt it was very important that we go on record with the City regarding this issue as we may have devastating consequences in the event we are unable to obtain a public water supply in a timely fashion. We are operating off a shallow well and are limited in our ability to permit additional wells. We are therefore requesting that if a deal is cut with the County to break the franchise, we should be able to hook into their system on a temporary basis until the City can adequately supply water to us. I thank you for your kind attention and trust you will keep us informed on this most important issue. Sincerely, Thomas H. Collins THC:jh cc: Mayor Conyers City Council Members 9301 A -1-A, Suite 4 Vero Beach, Florida 32963 Telephone (407) 589-8000 FAX (407) 589-5100 City of Sebastian POST OFFICE BOX 780127 0 SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 0 FAX (407) 589-5570 FAX TRANSMITTAL SHEET FAX # (- 44 7'- `X .4 `f' , & DELIVER TO: FROM: DATE: _ 4ZZj ,7, TIME SENT: TOTAL NUMBER OF PAGES (INCLUDING CQVER SHEET) RE:I I"-? �43VI u I ,/0 ORIGINAL WILL ( ) WILL NOT ( ) FOLLOW. IF YOU DO NOT RECEIVE ALL PAGES, PLEASE CALL (407) 589-5330 v- VIA LA February 13, 1992 Mr. Thomas H. Collins President Collins Investment Company 9301 A -I -A, Suite 4 Vero Beach, FL 32963 Dear Tom: This is in response to your two (2) letters regarding future water service to Captain Hiram's Sebastian Inlet Marina. The proposed interlocal agreement between the City and Indian River County does not address water service except to 1 the County's franchise to provide water service inside the City of Sebastian. Water services were addressed in a different manner ' than sanitary sewer services since neither the City nor the County has any water lines in the City. /" Indian River County has plans to a end its water service to the unincorporated portions of Northfan River County. To that end, the County plans to constr ct a water main within the Indian River Drive right-of-way. �V* understand your concern that Captain Hiram's should be connected to a public water system at the earliest available date. Should County water be available before a City line is constructed in that area, I can assure you that the City will work with Indian River County and attempt to reach an agreement whereby your property could be served with County water during the interim. I have always found the County to be cooperative with the City of Sebastian and, like us, I am sure they are sensitive to your needs and understand your concerns. In your January 3, 1992 letter you state that you had some sort of understanding with the City that the County would provide you with water in the interim period when the City is developing its own utility system. I am unaware of any agreement or representations by the City that would support your assertion. However, I will assure you that the City is concerned and understands your desire for public water service to Captain Hiram's and we will extend our fullest cooperation to Indian River County to allow you to connect to the County water main if it is available first. QO Mr. Tom Collins February 13, 1992 Page #2 I would encourage you to write Indian River County and request the same assurance from them. However, they have pledged to work with us both in the near and long term. However, since neither entity has any water facilities within the City, neither City nor County felt it appropriate to address interim water services. Sincerely, Robert S. McClary City Manager RSM/jmt cc: W.E. Conyers, Mayor & Sebastian City Council James Chandler, Indian River County Administrator City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 o FAX (407) 589-5570 FAX TRANSMITTAL SHEET FAX # ` / -_54'U DELIVER TO: FROM: n v ,{ DATE: k2 TIME SENT: TOTAL NUMBER OF PAGES (INCLUDING COVER SHEET) RE: ORIGINAL WILL ( V) WILL NOT ( Gy FOLLOW. IF YOU DO NOT RECEIVE ALL PAGES, PLEASE CALL (407) 589-5330 Capt. H; ^ n's SEBASTIAN INLET MARINA Home of the "World Famous- River Raw Bar Waterfront Banquet Facilities • Catering Service March 23, 1992 $t Received ) l4 Manam 0 �Ja Offiol I+/ Mr. Harry Asher, Assistant Director Indian River County Utilities Department Administration Building 1840 25th Street Vero Beach, Florida 32960 Dear Mr. Asher, This letter will confirm that Sebastian Inlet Marina and Trading Company, (the owner of Captain Hiram's), would like to reserve an additional 10 to 15 ERUs from the county sewer system to be used for future development purposes. Please acknowledge receipt of our request and let us know when these ERUs might be available. Thanking you for your continued cooperation, I am Sincerely, Thomas H. Collins cc: Masteller & Moler City of Sebastian ✓ Jim Hoffman Martin Carter By Car: 1606 Indian River Drive, Sebastian, FL 32958 By Boat: Marker 66 on the Intracoastal Waterway Phone: (407) 589-4345 FAX: (407)589-4346 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: March 16, 1992 TO: Mayor & City Council FROM: Robert S. McClary RE: Water & Sewer The next negotiating session with Indian River County to finalize the proposed inter -local agreement is scheduled for March 20, 1992. Unfortunately, this is beyond the agenda deadline for the March 25th regular City Council Meeting. originally, we planned to meet on March 12th in an effort to have the inter -local agreement ready for the agenda deadline of March 19th. However, the County could not meet on this date and we had to reschedule. The final element in the proposed inter -local agreement is the "bulk rate" wastewater charges the County would charge the City for transmission treatment of wastewater. There are a number of water and wastewater utility matters to be addressed by council, including: 1. Inter -local agreement between Indian River County and the City. 2. Consideration of a resolution which would authorize the reimbursement of certain expenditures with the proceeds of tax exempt bonds which may be used for financing. 3. Letter of engagement with Hartman & Associates for preparation of the 180.301 FS Hearing Briefing Docu- ments. 4. Engagement letter with Thomas Cloud for preparation of the 180.301 FS Hearing. 5. Consideration of initial utilities department staff. /sag J. CHARLES GRAY GORDON H. HARRIS RICHARD M. ROBINSON PHILLIP R. FINCH PAMELA O. PRICE JAMES F. PAGE. JR. WILLIAM A. BOYLES THOMAS A. CLOUD BYRD F. MARSHALL, JR. J. MASON WILLIAMS, III LEO P. ROCK, JR. G. ROBERTSON DILL CHARLES W. Be JACK A. KI 1�.� JAMES W ��1 FORRES EL.S-JR r GRAY, HARRIS & $OBINSON PROFESSIONAL ASSOCIATION ATTORNEYS AT LAW SUITE 1200 SOUTHEAST BANK BUILDING GLASS BANK BUILDING 201 EAST PINE STREET 505 NORTH ORLANDO AVENUE POST OFFICE BOX 3068 POST OFFICE BOX 320757 ORLANDO, FL 32802-3068 COCOA BEACH, FL 32932-0767 TELEPHONE (407) 943-8880 TELEPHONE (407) 783-2218 FAX (407) 244-5990 FAX (407) 783-2297 L WRITERS DIRECT DIAL PLEASE REPLY TO: 61 Orlando March 23, 1992 Mr. Charles P. Vitunac Indian River County Attorney 1840 25th Street Vero Beach, Florida 32960 THOMAS C. SHAW PAUL J. MOKRIS ALAN R. BUTTERWORTH DEBORAH S. HERNANDEZ PAUL S. OUINN, JR. DAVID L. SCHICK JACK K. McMULLEN ORLANDO L. EVORA SUSAN O. TASSELL FREDERICK W. RICHARDS RICHARD E. BURKE LORI R. BENTON ANTHONY J. COTTER TRACY A. BORGERT JOHN B. SHOEMAKER LISA J. FRANK' MICHAEL K. WILSON MARK S. WALKER LILA I. MPHENRY MALCOLM R. KIRSCHENBAUM OF COUNSEL NLN ...... OF NEW YOPK .' O ONNLOTI..T eA.B 0.1 VIA OVERNIGHT MAIL RS: Interlocal Utilities Agreement between Indian River County, Florida and City of Sebastian, Florida Dear Charles: I have been informed that a meeting took place between the City and County last Friday, March 20, 1992 and have been instructed to make certain changes in the draft of the Interlocal Utilities Agreement as outlined below. Therefore, enclosed you will find four originals of the above referenced Agreement, lacking only the exhibits. The changes that have been made to the Agreement involve the following: (1) The date in paragraph 2, page 6 has been changed from "March 1, 199211 to "May 1, 1992,11 (2) As noted in my previous letter to you of January 13, 1992, the fourth line of paragraph 7.2 has been changed to read "Class II customers" rather than "Class I customers," and (3) I have modified paragraph 7.3 on page 9 to provide that the City is responsible for the operation, maintenance, and replacement of the master meters. I also changed the use of the terminology that appears in only part of this paragraph (and not in the rest of the Agreement). For some reason that escapes me now, the terms "provider" and "purchaser" are used in the first part of paragraph 7.3. GRAY. HARRIS & ROBINSON PROFESSIONAL. ASSOCIATION Mr. Charles P. Vitunac March 23, 1992 Page 2 I believe it would be better change the word "provider" to ..purchaser" to the word "City." and more consistent to "County" and the word It is my understanding that the rates were discussed at the meeting. Even though the City staff does not completely agree with the methodology or the numbers that were proposed by the County for the rate, both parties did agree to present and recommend the rate schedule to their respective decision makers which was discussed at the meeting. I assume you will send copies of this proposed rate schedule to Robb McClary and Gerry Hartman at the earliest possible time. It is also my understanding that you will preparing all three exhibits for the Agreement, which include: (1) A complete copy (including all exhibits) of the Park Place Agreement as Exhibit "A," (2) The map to be used as Exhibit "B," (3 ) The rate exhibit for the bulk rate to be included as Exhibit "C." Once you have attached exhibits to the four originals, it is my understanding that they will introduced for approval and execution by the Board of County Commissioners. Upon execution of all four originals, please deliver all four originals to Robb McClary for submittal to the City Council. Upon execution, two of the originals will be returned to you directly. If you have any questions regarding this matter, please don't hesitate to call on me. TAC: jlm 40107-1 Enclosures: Sicerely VAW GRAY, HARR Four original Interlocal Utilities Agreement cc: Robb McClary Gerald C. Hartman .A. Telephone: (407) 567-8000 March 24, 1992 BOA -7) OF COUNTY COMMISSIO. QRS .840 25th Street, Vero Beach, Florida 32960 Suncom Telephone: 224 1011 Mr. Tom Collins 9301 North AlA Suite 4 Vero Beach, Florida 32963 SUBJECT: COUNTY WATER AND SEWER SERVICE TO THE CITY OF SEBASTIAN Dear Tom, This letter is written as a follow-up to our meeting of March 19, 1992, regarding the aforementioned subject. As discussed in that meeting, there is currently no excess capacity available in our North County wastewater system. Also, as a matter of public record, and at the request of the City of Sebastian, on August 6, 1991, the Indian River County Board of County Commissioners approved the removal of the City of Sebastian from our North County water distribution system. Subsequent to that action, a study has been completed by an outside consultant redesigning our proposed North County water distribution system. Portions of this system have already been designed and will be under construction in April of 1992 and do not include any capacity for the City of Sebastian. The County does not anticipate building the line along Indian River Drive for approximately 5 - 7 years. If you have any questions regarding this matter, please do not hesitate to contact this office at (407) 567-8000, Extension 308. Sincerely, WILLIAM F. MCCAIN Capital Projects Engineer Department of Utility Services WFM:nr cc: Terrance G. Pinto, Director of Utility Services (NCOLLINS.WFM) rok STATE OF FLORIDA DEPARTMENT OF COMMUNITY AFFAIRS 2 7 4 0 C E N T E R V I E W D R I V E Lawton Chiles T A L L A H A S S E E, F L O R I D A 3 2 3 9 9 March 30, 1992 Mr. Thomas H. Collins, President Sebastian Inlet Marina 1606 Indian River Drive Sebastian, Florida 32958 Dear Mr. Collins: William E. Sadowski Secretary Thank you for your letter of February 14, which discussed the City of Sebastian's sewer and water supply. I share your concern about the potential for interruption of these vital services to members of the Sebastian community, and I appreciate your taking the time to forward this information to us. I understand, based on our inquiries, that the City of Sebastian has not finalized its decision to establish an alterna- tive sewer and water supply system, but that the proposed plan should be completed within a month or two. If, in fact, the City adopts a new method of providing these services to its citizens in the future, it will become necessary to amend the current local comprehensive plan to reflect any system changes in the Future Land Use Element, the Public Facilities Element, and other affected elements. However, there is no specific requirement for the City to advise the Department in advance. As part of the amendment proc adopted, the City must hold public posed changes. I would certainly ese hearinTs to ensure that your and water systems are represented. , if a new system is dvise you to participate in own views regarding the sewer If you require specific information on the new system being considered, I would like to suggest that you contact Mr. Bruce Cooper, City of Sebastian Planning Director, at 589-5330. EMERGENCY MANAGEMENT 9 HOUSING AND COMMUNITY DEVELOPMENT • RESOURCE PLANNING AND MANAGEMENT Mr. Thomas H. Collins March 30, 1992 Page Two Mr. Cooper has kindly offered to assist with any questions you may have, and has the expertise to advise you on the particulars of the alternative systems being considered. Thank you again for your correspondence. Please let me know if we can be of further assistance. Sincerely, A41- "sem Robert Pennock, Chief Bureau of Local Planning RP/ jbb cc: Mr. Bruce Cooper Planning Director City of Sebastian 0 J. CHARLES GRAY GORDON H. HARRIS RICHARD M. ROBINSON PHILLIP R. FIN CN PAMELA O. PRICE JAMES F. PAGE, JR. PHILIP M. TREES WILLIAM A. BOYLES THOMAS A. CLOUD BYRD F. MARSHALL, JR. J. MASON WILLIAMS,M LEO P. ROCK, JR. G. ROBERTSON DILG CHARLES W. SELL JACK A. KIRSCHENBAUM JAMES W. PEEPLES M FORREST S. FIELDS, JR. GRAY, HARRIS, ROBINSON, KIRSCHENBAUM & PEEPEES ATTORNEYS AT LAW GLASS BANK BUILDING S05 NORTH ORLANDO AVENUE POST OFFICE BOX 320757 COCOA BRACH, FL 32932-0767 TELEPHONE (407) 783-2219 FAX (407) 783-2297 SUITE 1200 SOUTHEAST BANK BUILDING 201 EAST PINE STREET POST OFFICE BOX 3068 ORLANDO, FL 32802-3063 TELEPHONE WRITERS DIRECT DIAL PLEASE REPLY TO: Orlando April 7, 1992 Mr. Charles P. Vitunac Indian River County Attorney 1840 25th Street Vero Beach, Florida 32960 THOMAS C. SHAW PAUL } OKRIS ALANR. BUTTERWORTH OEBO RAH S. HERNANDEZ PAUL S. OUINN, JR. DAVID L. SCHICK JACK K. MCMULLEN ORLANDO L. EVORA SUSAN D. TASSELL FREDERICK W. RICHARDS RICHARD E. BURKE LORI R. BENTON ANTHONY J. COTTER TRACY A. BORGERT JOHN S. SHOEMAKER LISA J. FRANK' MICHAEL K. WILSON MARK S. WALKER MALCOLM R. KIRSCHENBAUM OF COUNSEL -MEMBCR OF NEW YORK ANO CONNECTICUT BAPS ONLY VIA OVERNIGHT MAIL RE: Replacement Page 3 and 4 for Interlocal Utilities Agreement between Indian River County, Florida and City of Sebastian, Florida Dear Charles: Pursuant to our phone conversation last Wednesday, I am enclosing four originals of page 3 and 4 for the above referenced Agreement. They have been modified to reflect insertion in Recital 1.6, together with a parenthetical which notes that the 303 City equivalent residential units includes those in Park Place. You may insert these pages into the four original Agreements I previously sent to you. I am still awaiting receipt of the exhibits which you promised me last Wednesday. As you probably know by now, City Council has conceptually approved the Agreement in a straw vote that took place on Wednesday night. The Agreement is scheduled to be heard on April 22, 1992, the day after which you told me that the Agreement is scheduled to go before Indian River County. Since the original Intergovernmental Agreement was adopted by Resolution in 1987, no Ordinance amendments will be necessary for the City in order to repeal the prior Agreement and enter into the new Agreement. As you may recall, this is expressly authorized by Section 7.02 of Ordinance No. 0-87-01. GRAY, HARRIS, RoDYNSON, KIRSCHENHAUM & PEEPLE S Mr. Charles P. Vitunac April 7, 1992 Page 2 Please call me if you have any questions regarding this matter. Sincerely yours, L omas A d, Esg e GRAY, HARRIS, ROBINSON, KIRSCHENBAUM & PEEPLES, P.A. Special Counsel to the City of Sebastian signed for Mr. cloud in his absence to prevent delay. TAC: jlm 40107-1 Enclosure: 4 original page 3 and 4 of Agreement cc: Charles Ian Nash (w/copy of enclosure) Robb McClary (w/copy of enclosure) tain a water distribution and a wastewater collection and dis- posal system within a portion of the CITY. 1.2. On January 14, 1987, by CITY Resolution R-87-6, the CITY gave the COUNTY a 30 -year exclusive franchise for the provision of water and wastewater services within the rest of the City. 1.3. An interlocal agreement entered into between the CITY and COUNTY and effective February 3, 1987, required the CITY to assist the COUNTY in assessing property owners for the construction of collection systems in the City limits. 1.4. At construction financing for a wastewater plant and main lines, the COUNTY issued revenue bonds in the amount of $6,075,000 on October 15, 1989. Part of the security for the re- payment of these bonds was the revenue from impact fee assess- ments for reserved connections within the City. 1.5. The COUNTY has constructed a wastewater treatment plant, major collection lines, and certain force mains from the plant through the unincorporated area into the City and beyond and was ready to provide service for CITY customers on or about March 5, 1991. 1.6. Approximately 303 CITY equivalent residential units (including those in Park Place) are now receiving wastewater service from these facilities. 1.7. On December 12, 1990, the CITY and COUNTY entered into and executed an assignment whereby the CITY transferred to 3 the COUNTY, and the COUNTY accepted, all of the CITY's right, title, and interest in the GDU franchises, except the right to receive any and all franchise revenues and fees owed under the GDU franchises, and except the right to regulate rates and charges being charged and collected pursuant to the GDU fran- chises. 1.8. The CITY on or about February 27, 1991, deter- mined that it would be in the CITY's best interest to consider a revocation or cancellation of the franchise given to the COUNTY in paragraph 1.2 and perhaps provide its own water and wastewater service. 1.9. On March 5, 1991, the COUNTY unanimously agreed to relinquish its franchise rights within the CITY if that was what the CITY wished. 1.10. On March 13, 1991, the COUNTY sent a letter to the CITY offering to relinquish its franchise rights. 1.11. On April 5, 1991, the CITY conditionally accepted the COUNTY's offer, subject to completion of the neces- sary documents containing terms and conditions acceptable to both parties so that agreements, ordinances, and resolutions may be rescinded in such a manner as to not impact third parties. 1.12. On March 27, 1991, the CITY hired a utility con- sultant to prepare a feasibility study concerning whether the CITY should provide its own water and wastewater systems. 4 J. CHARLES GRAY GORDON H. HARRIS RICHARD M. ROBINSON PHILLIP R. FINCH PAMELA O. PRICE JAMES F. PAGE, JR. PHILIP H. TREES WILLIAM A. BOYLES THOMAS A. CLOUD BYRD F. MARSHALL, JR. J. MASON WILLIAMS, III LEO P. ROCK, JR. G. ROBERTSON DILL CHARLES W. SELL JACK A. KIRSCHENBAUM JAMES W. PEEPLES = FORREST S. FIELDS, JR. --1 GRAY, HARRIS, RoBINSON, KIRSCHENBAUM & PEEPLES ATTORNEYS AT LAW GLASS BANK BUILDING S05 NORTH ORLANDO AVENUE POST OFFICE BOK 320757 COCOA BRAcB, F. 32932-075T 4 APR lin Received City Manalef'i Office TELEPHONE (407) 783-2218 SUITE 1200 SOUTHEAST BANK BUILDING 201 EAST PINE STREET POST OFFICE BOK 3088 ORLANDO, PL 32809-3063 TELEPHONE (407) 043 -Baso FAX (407) 7B3-2297 FAX (407) 2M-5690 WRITER'S DIRECT DIAL PLEASE REPLY TO: Orlando April 7, 1992 Charles-''Paa"Tash, Esquire Frese, Fallace, Nash & Torpy, P.A. 930 S. Harbor City Boulevard Suite 505 Melbourne, Florida 32901 RE: Proposed Resolution Repealing Franchise Dear Charles: THOMAS C. SHAW PAUL } MOKRIS ALAN R. BUTTERWORTH DEBORAH S. HERNANDEZ PAUL S. QUINN. JR. DAVID L. SCHICK JACK K. MCMULLEN ORLANDO L. EVORA SUSAN D. TASSELL FREDERICK W. RICHARDS RICHARD E. BURKE LORI R. BENTON ANTHONY J. COTTER TRACY A. BORGERT JOHN B. SHOEMAKER LISA J. FRANK' MICHAEL K. WILSON MARK S. WALKER MALCOLM R. KIRSCHENBAUM OF COUNSEL 'MEMBER OF NEW YORK AND CONNECTICUT BPR$ ONLY VIA FACSIMILE 407/951-3741 Pursuant to our phone conversation yesterday, I have spent time analyzing the prior Resolutions and have prepared a Resolution to repeal the prior Resolutions related to the Franchise Agreement. This document can be presented to the City Council on April 22, 1991. At this time, I am not recommending an Ordinance change to Ordinance No. 0-87-1. First, this Ordinance does not in it of itself grant any franchise rights to the County. The purpose of the Ordinance was to provide a regulatory framework for allowing the County to expand its water and wastewater systems within the City. This Ordinance imposes an impact fee to offset the cost of the County of unnecessary expansion of the water and sewer systems, but left to the County's rate consultants the amount of the impact fees within the franchise territory. The Ordinance also requires the City Council to establish, collect, and enforce collection of certain special assessments to be used to defray the whole or any part of the cost of any water and wastewater improvements needed within the City so that the County could extend service. The Ordinance also provides for the imposition of special assessments in lieu of impact fees. Finally, the Ordinance goes onto require the City to enforce a mandatory water and wastewater connection policy within the City following notification to do so by the GRAY, HARRIS, RosiNso.., KIRscHENBAUM & PEEPLEs Charles Ian Nash April 7, 1992 Page 2 Utility Department of the County. The Ordinance also authorized the City to enter into agreements with the County which would allow the County to extend its water and wastewater systems within the City. The problem that arises in doing a blanket repeal of this Ordinance relates to the fact that certain collection systems have been installed and assessments have been charged and collected. I need to spend some time with Gerry Hartman to determine the best way to craft a document that expunges the provisions no longer necessary, while maintaining the legality of things that have occurred in the past so that we do not create the possibility of a claim of refund for those who have previously paid special assessments. Obviously, without the Franchise Agreement, my opinion is that these provisions no longer apply to new connections within the City. It may be possible to leave the Ordinance alone. For now though, I do not think we need to take action on the Ordinance in order to repeal the Resolutions applicable to the Franchise Agreement. If you or anyone else have any questions regarding this matter, please don't hesitate to call on me. Sincerely yours, homas A. d, Esquire GRAY, HARRIS, ROBINSON, KIRSCHENBAUM & PEEPLES, P.A. Special Counsel to the City of Sebastian Signed for Mr. cloud in his absence to prevent delay. TAC: jlm 40107-1 Enclosure: Resolution No. R -92 - cc: Robb McClary (w/enclosure) (via facsimile) Gerald C. Hartman (w/enclosures) RESOLUTION NO. R -92- A RESOLUTION OF THE CITY OF SEBASTIAN, FLORIDA, REPEALING RESOLUTION NOS. R-87-6, R- 87-7, AND R-90-55; REPEALING THE INDIAN RIVER COUNTY WATER AND SEWER FRANCHISE; PROVIDING FOR THE APPROVAL OF AN INTERLOCAL UTILITIES AGREEMENT BETWEEN INDIAN RIVER COUNTY, FLORIDA AND THE CITY OF SEBASTIAN, FLORIDA; PROVIDING FOR REPEAL OF RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, beginning in 1986, Indian River County and the City of Sebastian held discussions and meetings regarding the County's desire to provide water and wastewater service within the City of Sebastian; and WHEREAS, at two hearings held by the Sebastian City Council on January 7 and January 14, 1987, the City of Sebastian adopted a series of documents which granted certain franchise and service rights to Indian River County within the City of Sebastian; and WHEREAS, the City adopted Resolution Nos. R-87-6 and R-87-7 which had the effect of granting a franchise to Indian River County before the entire area within the incorporated limits of the City (excluding previously granted franchised areas) and which approved the form and substance of an Intergovernmental Agreement; and WHEREAS, the City adopted Resolution No. R-90-55 and executed an Assignment Agreement dated December 12, 1990, in which the City agreed to transfer to Indian River County all of the City's right, title and interest in the water and wastewater franchises granted to General Development Utilities, Inc.; and WHEREAS, the City on or about February 27, 1991, determined that it would be in the City's best interest to consider revocation or cancellation of the franchise given to Indian River County and perhaps provide its own water and wastewater service; and WHEREAS, on March 5, 1991, Indian River County unanimously agreed to relinquish its franchise rights within the City; and WHEREAS, on March 13, 1991, the Indian River County sent a letter to the City of Sebastian offering to relinquish its franchise rights; and WHEREAS, on April 5, 1991, the City of Sebastian conditionally accepted Indian River County's offer subject to completion of the necessary documents containing terms and conditions acceptable to both parties so that agreements, ordinances, and resolutions may be rescinded in such a manner as do not impact third parties; and WHEREAS, on , 1991, the City hired a utility consultant to prepare a feasibility study concerning whether the City should provide its own water and wastewater system; and WHEREAS, the feasibility study prepared by the City's consultants was presented to the City on June 26, 1991, and recommended that the City go ahead with its own utility service; and WHEREAS, the City and the County have this day approved an Interlocal Utilities Agreement between Indian River County, Florida, and the City of Sebastian, Florida, which provides for the revocation of the County's franchise rights within the City of Sebastian and other terms and conditions. NOW, THEREFORE, be it resolved by the City Council of the City of Sebastian, Indian River County, Florida, that: SECTION 1. REPEAL AND TERMINATION OF INDIAN RIVER COUNTY FRANCHISE. The City hereby repeals, revokes, and terminates Resolutions Nos. R-87-6, R-87-7, and R-90-55, together with that Intergovernmental Agreement by and between the City and Indian River County entered into February 3, 1987, and the Assignment Agreement dated December 12, 1990 between the City of Sebastian and Indian River County SECTION 2. AGREEMENT. The Mayor and the City Clerk of the City of Sebastian, Indian River County, Florida, are hereby authorized to sign, on behalf of the City, the Interlocal Utilities Agreement between Indian River County, Florida and City of Sebastian, Florida, a copy of which is attached to this Resolution as Exhibit "A" and incorporated herein by this reference. SECTION 3. CONFLICT. All Resolutions or parts of Resolutions in conflict herewith are hereby repealed. SECTION 4. SEVERABILITY. In the event a court of competent jurisdiction shall hold or determine that any part of this Resolution is invalid or unconstitutional, the remainder of the Resolution shall not be affected and it shall be presumed that the City County of the City of Sebastian did not intend to enact such invalid or unconstitutional provision. It shall further be assumed that the City Council would have enacted the remainder of this Resolution without such invalid and unconstitutional provision, thereby, causing said remainder to remain in full force and effect. SECTION 5. EFFECTIVE DATED. This Resolution shall take effect immediately upon its adoption. The foregoing Resolution was moved for adoption by Councilman The motion was seconded by Councilman and , upon being put into a vote, the vote was as follows: Mayor Lonnie R. Powell Vice -Mayor Frank Oberbeck Councilman Peter R. Holyk Councilman Carolyn Corum Councilman George G. Reid The Mayor thereupon declared this Resolution duly passed and adopted this day of ATTEST: Kathryn M. O'Halloran, CMC/AAE, City Clerk (SEAL) 1992 CITY OF SEBASTIAN, FLORIDA By: Lonnie R. Powell, Mayor Approved as to Form and Content: Charles Ian Nash, City Attorney VIA OVERNIGHT MAIL Mr. Robb McClary City Manager City of Sebastian 1225 Main Street Sebastian, Florida 32958 RE: Interlocal Utilities Agreement between Indian River County, Florida and City of Sebastian, Florida Dear Mr. McClary: Pursuant to our conversation, enclosed herewith is a clean copy of the entire above referenced Agreement in which you had previously received replacement pages 3 and 4 in correspondence dated April 7, 1992. If I can be of any further service, please don't hesitate to call. Sincerely yours, net L. onetto Secretary o Thomas A. Cloud, Esquire GRAY, HARRIS & ROBINSON, P.A. :jlm cc: Thomas A. Cloud Enclosure: Interlocal Utilities Agreement GRAY, HARRIS & R013INSON PROFESSIONAL ASSOCIATION J. CHARLES GRAY THOMAS C. SHAW GORDON H. HARRIS PAUL J. MOKRIS RICHARD M. ROBIN50N ATTORNEYS AT LAW ALAN R. BUTTERWORTH PHILLIP R. FINCH DEBORAH 5. HERNANDEZ PAMELA O. PRICE SUITE 1200 PAUL S. OUINN, JR. JAMES F. PAGE, JR. DAVID L SCHICK WILLIAM A. BOYLES SOUTHEAST BANK BUILDING GLASS BANK BUILDING JACK K. MCMULLEN THOMAS A. CLOUD 201 EAST PINE STREET 505 NORTH ORLANDO AVENUE ORLANDO L. EVORA BYRD F. MARSHALL, JR. SUSAN D. TASSELL J. MASON WILLIAMS, III POST OFFICE BOX 3068 POST OFFICE BOX 320]5] FREDERICK W. RICHARDS LEO P. ROCK, JR. RICHARD E. BURKE G. ROBERTSON DI -G ORLANDO, FL 32802-3068 COCOA BEACR, Fm 39932-0]59 LORI R. BENTON CHARLES W. SELL ANTHONY J. COTTER JACK A. KIRSCHENBAUM TELEPHONE (407) 843-8880 TELEPHONE (407) 783-2218 TRACY A. BORGERT JAMES W. PEEPLES Ei FORREST 5. FIELDS, JR. FAX (40] 244-5690 FAX (40] ) ) ]83-229] JOHN B. SHOEMAKER LISA J. FRANK'S WRITER'S DIRECT DIAL MICHAEL K. WILSON MARK S. WALKER LILA 1. McHENRY MALCOLM R. KIRSCHENBAUM PLEASE REPLY TO: OF COUNSEL 'MEMBER Orlando ND CORNNECTICUTYBARS CNI.Y April 14, 1992 VIA OVERNIGHT MAIL Mr. Robb McClary City Manager City of Sebastian 1225 Main Street Sebastian, Florida 32958 RE: Interlocal Utilities Agreement between Indian River County, Florida and City of Sebastian, Florida Dear Mr. McClary: Pursuant to our conversation, enclosed herewith is a clean copy of the entire above referenced Agreement in which you had previously received replacement pages 3 and 4 in correspondence dated April 7, 1992. If I can be of any further service, please don't hesitate to call. Sincerely yours, net L. onetto Secretary o Thomas A. Cloud, Esquire GRAY, HARRIS & ROBINSON, P.A. :jlm cc: Thomas A. Cloud Enclosure: Interlocal Utilities Agreement Capt. Hit _,n's SEBASTIAN INLET MARINA Home of the "World Famous' River Raw Bar Waterfront Banquet Facilities • Catering Service April 14, 1992 Mayor Lonnie Powell and City Council Members Sebastian City Hall Post Office Box 780127 Sebastian, Florida 32978 Dear Mayor Powell and Council Members, As you know, we have questioned the City's position relative to the supply of sewer and water to our city. I have researched the issue and need to again express my concerns with the path the City is taking. The facts as I see them follow: 1. Due to the City's initiative over a year ago to cancel the franchise, all work on the County level to supply sewer and water to the City was put on hold or cancelled. 2. The expansion of the existing county sewer plant from 1 million gallons to 2 million gallons capacity has been delayed due to the City's decision to cancel the franchise, so at this point there is no additional sewer capacity available to the City, wholesale or otherwise City customers who have already purchased ERUs will be allowed to hook up and use that capacity under the proposed city/county agreement, but no new customers will be allowed to hook into the existing county system at this time Until the plant is expanded, there is no capacity available for any new businesses or residences who have not already purchased ERUs. The purposed new Interlock Agreement does not address a guarantee of interim sewer availability. By Car: 1506 Indian River Drive, Sebastian, FL 32958 By Boat: Marker 66 on the Intracoastal Waterway Phone: (407)589-4345 FAX: (407) 589-4346 Mayor Lonnie Powell and Council Members April 14, 1992 Page 2 3. The County was moving toward the installation of water service for the City and that service would have been available in the very near future had the City not intervened. At this point, the City has told the County that they do not want county water service, so the County will not be installing any water lines in the City. In fact, the County now plans to bypass the City with there main water line to supply the North County, (see attached letter from the County). Therefore, public water service which could have been available through the County, will be delayed until the City can undertake the design, funding and construction of a complete water facility. The supply of public water is essential for commercial development and we depended on the County's agreement to supply water at Captain Hiram's. 4. The City Manager, acknowledging the tremendous undertaking, requested the City Council approve the hiring a Utility Director and related staff over 6 months ago. To date, that request has not been acted on favorably. 5. The consultants the City hired failed to suggest any negative implications this undertaking may cause. Homeowners and businesses would save substantially on their fire insurance premiums if fire hydrants were available throughout the City. Fire sprinkler systems in commercial and public buildings would also be possible. They would have been available under the County franchise agreement and now they will be delayed. How much will this cost each homeowner and businessman? 6. Nowhere could I find, after reviewing the City files, any calculations relative to the loss in tax revenue which will certainly occur when construction projects, which create jobs and tax revenues, are delayed due to the lack of available public sewer and water. Mayor Lonnie Powell April 14, 1992 Page 3 and Council Members 7. The availability and future acquisition of the GDC plant is questionable at best. There is a strong possibility that any acquisition would have to be litigated, and this can certainly delay this project. From what I read, very little is known about the condition of the plant, and the cost associated with its potential acquisition, refurbishment and expandability. It does not appear that anyone has consulted the DER about the many new conditions that must be satisfied before the system could be expanded to meet the City's needs. 8. To my knowledge, the Department of Community Affairs has not been consulted relative to this change in policy by the City. On page I-17 of the City's Comprehensive Plan, the City states, and I quote, "The County system will provide service throughout the downtown business district, the US#1 corridor and the riverfront along the Indian River." The comp plan goes on to say relative to sewer, "The City and Indian River County have agreed that as the Indian River County Sewer System is constructed, all existing and future developments shall be required to connect to the central sewer system." I am attaching a recent copy of a letter I received from the DCA. Please note that the City must amend this plan and hold public hearings. 9. Regarding potable water, the comp plan states, and I quote, "The City of Sebastian has entered a franchise agreement with Indian River County to provide service to the area". I have attached copies of pertinent portions of the City's Comp Plan and have highlighted appropriate sections for your review relative to this issue. Please note the many inconsistencies. With the town of Sebastian continuing to grow, there is an obvious need for quality commercial and residential developments. Delaying the availability of public sewer and Mayor Lonnie Powell April 14, 1992 Page 4 and Council Members water could prove to be most costly. Additionally, no one knows how much it will cost the City to enter into the sewer and water business:: We urge the City to reconsider their position and consider an alternative method wherein the County would provide the wholesale service and the City would manage the distribution and administrative end of the utility business, (see a copy of my letter dated 8-29-91). Thank you for your kind attention. Sincerely, Thomas H. Collins cc: Martin Carter Jim Hoffman Terry Pinto, County Utilities Director ILARTId>�AN & ASSOCIATTS, L,, C. engineers, hydrogeologists, surveyors & management consultants Mr. Tom Cloud Gray, Harris & Robinson, P.A. 201 East Pine Street, Suite 1100 Orlando, Florida 32801 Subject: Dear Tom: April 20, 1992 HAI #91-174.00 Interlocal Utilities Agreement Between Indian River Co the City of Sebastian, Florida and I have reviewed the above referenced Interlocal Utilities Agreement and attached exhibits, and found them to be in order. With regard to Exhibit "A", the Agreement between Indian River County, Florida and Nelson Hyatt, and I was unable to find Exhibit "C" and Exhibit "D" of this said Agreement. Exhibit "C" of this Agreement is the description of all easements to be transferred to the County, and Exhibit "D" of this Agreement is the service area of the utility system. I assume that both Exhibits of this Agreement will be submitted complete to the City with the Interlocal Utilities Agreement between the County and the City. With regard to Exhibit 'B", it is my understanding, based on this agreement, that the City's responsibility shall include rate setting; customer connections, customer relations and complaints; meter installation and reading; billing and bill collection; collection system construction, related repair work; and all other necessary activities performed by a utility company other than the treatment of wastewater. Furthermore, it is my understanding that the City's responsibility ends at the gravity line discharging into the four (4) regional lift stations identified in Exhibit "B". These four (4) lift stations include: • Captain Hirams Subregional Lift Stations • Sebastian Golf Course Regional Lift Station • Chesser Gap Regional Lift Station • Stratton Avenue Regional Lift Station The County's responsibility for these facilities shall include repair and maintenance of the County's lines, force mains and pump stations, as shown on Exhibit "B". Furthermore, the City shall install metering equipment on the four (4) lift stations when the City expands the tot T•Asr NNE STREET- SUITE 1000.ORLANDO, FL 32801 TELEPHONE OW) 839-395s • FAX (407) 839-3790 PRINCIPALS: JAMES F. QIRISTOPHER • CHARLES W. DRAKE • GERALD C. HART .MAN • MARK I. LUKE • MARK A. RYNNING • HAROLD E. SCHMIDT. JI(. e-. Aln*� Mr. Tom Cloud April 20, 1992 Page 2 gravity lift station to be connected to that particular pump station of adequate size to warrant an installation of appropriately sized sewer meter to be mutually agreed upon between the City and the County. At such time, the meter shall become the responsibility of the County, but the City shall remain responsible for all operation, maintenance and replacement of the meter. In all cases, the County shall read the meter for billing purposes. I have read Exhibit "C", which is the bulk rate exhibit for the County and City wholesale rate agreement, and it is identical to what was agreed upon in our meeting on March 20, 1992. Based on our review of the Interlocal Agreement between Indian River County, Florida and the City of Sebastian, Florida, it appears that all changes made based on our March 20, 1992 meeting with the County have been made and the exhibits are in order. As previously indicated, two (2) exhibits to Exhibit "A", identified in Exhibit "A" as Exhibit "C" and Exhibit "13", need to be attached to the final Interlocal Agreement between the City and the County. Other than the above, it appears that the Interlocal Utilities Agreement between the County and the City is in order. It is my understanding that the above referenced agreement will be going in front of the County Commission on Tuesday, April 21, 1992, and in front of the City of Sebastian City Council on Wednesday, April 22, 1992. If you have any questions regarding this matter, please feel free to call me. Very truly yours, Hartman & Associates, Inc. Harold E. Sch t, Jr., P.E. Vice President HES/ch Cll/Cioud.hes cc: Rob McClary, City of Sebastian Charles Nash, Esquire Gerry Hartman, HAI HARTNiA1ti & ASS 0CLATE S. li-iCo engineers, hydrogeologists, surveyors & management consultants June 15, 1992 HAI #92-023.00 Mr. Robb McClary ,° JUN 1992 City Manager 00 Received V Ci Man er City Managers City of Sebastian c Office _ P.O. Box 780127 F2 ti Sebastian, Florida 32978—tso£6Z ' Subject: Negotiations and Data Collection Regarding General Development Utilities, Inc.'s Sebastian Highlands Water and Wastewater System Dear Mr. McClary: The purpose of this letter is two -fold. First, enclosed is a copy of the recommended order of $31.9 million for the City of Palm Bay. The combined Palm Bay and North Port awards total $48.4 million. The City of Sebastian, of course, cannot afford litigation as a cost associated with the utility acquisition. That message must be transmitted to Larry Rutherford of Atlantic Gulf Communities, Inc. The desire to move forward and negotiate with you without litigation or extraordinary acquisition expense is necessary. You may wish to discuss this point with Mr. Rutherford in stating that the utility would be far too expensive if such acquisition costs are incurred. In an effort to facilitate a smooth and appropriate acquisition, and to maximize the amount of money available for a potential acquisition, the City would appreciate General Development Utilities, Inc.'s (GDU's) full cooperation in the investigation of the potential transfer of this system to the City of Sebastian from GDU. In order to accomplish the above, full and complete access to all records, facilities, operational staff, billing information, and like information is necessary. Therefore, there are two (2) questions posed to Mr. Rutherford: 1. Is he willing to negotiate this system as an investigation of the possibility of acquisition prior to exercising the City's option? 2. Is he willing to provide for full and complete cooperation with the City to minimize the costs associated with the acquisition? 201 EAST PINE STREET • SUITE 1000 • ORLANDO. FL 32801 TELEPHONE (407) 839-3955 • FAX (407) 839-3790 PRINCIPALS: JAMES E. CHRISTOPHER • CHARLES W. DRAKE • GERALD C. HARTMAN • MURK 1. LUKE • MARK A. RYNNING • HAROLD E SCHMIDT. JR. If the answer to both of those questions is "yes" from Mr. Rutherford to you, then let us schedule some times in which we can sit down and talk to him. Of course, you can tell him that you are willing to meet with him in Miami. I would like to attend the first meeting, such that we can pick up records and other materials associated with that session in order to have a dual purpose and pick up records and materials associated with our data collection activity in a cost-effective manner. Very truly vours. Hartman C( Zei C. President GCH/ch C12.McClary.gh Enclosure cc: Tom Cloud, Esquire, GHR w/enclosure Charles Nash, Esquire w/enclosure Hal Schmidt, HAI w/enclosure