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HomeMy WebLinkAbout1995 07 19 - Special City Council MeetingSEBASTIAN FLORIDA SPECIAL CITY COUNCIL MEETING PUBLIC HEARING CHAPTER 180.301 FLORIDA STATUTES JULY 19, 1995 - 7:00 P.M. 1 (407) 589-5330 CITY HALL, 1225 MAIN STREET, P.O. BOX 780127, SEBASTIAN, FLORIDA 32978-0127 PUBLIC HEARING CHAPTER 180.301 FLORIDA STATUTES JULY 19, 1995 TABLE OF CONTENTS .. PAGE TITLE 1.0 - 1.8 BACKGROUND PUBLIC HEARING REQUIREMENTS 2.0 INCOME & EXPENSE AUDITED FINANCIAL STATEMENT 3.0 - 3.2 BALANCE SHEET 4.0-4.7 EXISTING RATE BASE 5.0-5.4 THE PHYSICAL CONDITION OF THE UTILITY FACILITIES 6.0-6.5 REASONABLENESS OF THE SALES PRICE AND TERMS 7.0-7.1 IMPACT OF THE SALE, BOTH POSITIVE AND NEGATIVE 8.0 ADDITIONAL INVESTMENT REQUIRED _ 9.0 ALTERNATIVES TO THE SALE AND POTENTIAL IMPACT ON UTILITY CUSTOMERS IF THE SALE IS NOT MADE 10.0 ABILITY OF THE PURCHASER TO PROVIDE AND MAINTAIN HIGH QUALITY AND COST EFFECTIVE UTILITY SERVICE 11.0 STATEMENT OF PUBLIC INTEREST 12.0 MAP - SEBASTIAN WATER ASSESSMENT SERVICE AREAS 13.0 COPY OF PROPOSED FINAL DRAFT AGREEMENT l 14.0 ENCLOSURES Debt Service Pro -Forma BRIEF BACKGROUND INFORMATION REGARDING THE CITY OF SEBASTIAN WATER AND WASTEWATER UTILITY SYSTEM The City of Sebastian is the second most populated municipality in Indian River County, Florida, and is located in the northeast comer of the County on the west bank of the Indian River. The most significant land use feature of the City is the large number of vacant platted residential lots. There are approximately 14,170 platted residential lots of which 5,512 are improved and the remaining 8,658 are unimproved. The large number of platted residential lots are the reason the City is expected to become the most populous municipality in the County during the next 10 years. The land area of the City of Sebastian is approximately 8,643 acres or 13.5 square miles. A large portion of the City of Sebastian is the Sebastian Highlands planned community. This General Development Corporation (GDC) planned community was platted in the 1960's and includes over 13,000 single family residential lots. However, as indicated previously, only a small percentage of the platted lots have been developed at this time. Between 1986 and December 12, 1990, the City of Sebastian and Indian River County entered into a series of agreements which changed the provisions of water and wastewater service within the incorporated limits of the City. Beginning in 1986, Indian River County and the City of Sebastian held discussions and hearings regarding the County's desire to provide water and wastewater service with the City of Sebastian. At that time, the County was beginning the development of the North County subregional wastewater system and viewed the City of Sebastian as a potential source of customers for this system. At those hearings, the City adopted a series of documents which have changed the nature of the provisions, and to some extent, the regulation of water and wastewater service within the City of Sebastian. These initial documents involved Ordinance No. 0-87-01, Resolution Nos. R-87-6 and R-87-7, and an Intergovernmental Agreement between Indian River County and the City of Sebastian. Since 1987, there have been no less than five (5) City Resolutions which have further supplemented the Indian River County Agreements. These included Resolution Nos. R-87-85, R-89-12, R-89-60, R-90-30 and R-90-31. On December 12, 1990, the City entered into a series of agreements relating to the water and wastewater franchises granted to GDU. These agreements transferred to the County all of the City's rights, titles and interests in the water and wastewater franchises granted to GDU, with the exception of the City's right to receive franchise revenues and to regulate rates and charges pursuant to said franchise. 1.0 On March 5, 1991, the City received an offer from Indian River County to "...relinquish its franchise rights within the City of Sebastian if that was what the City Council wished... ". On April 5, 1991, Special Counsel for the City responded to the Board of County Commissioners by accepting the County's offer subject to completion of the necessary documents containing terms and conditions applicable to the City and the County so that the agreements, ordinance and resolutions could be rescinded in such a manner as to not impact innocent third parties. Meetings were then held with various County and City officials, including a meeting on April 17, 1991, in which the City and the County agreed to work together in order to "unbuckle" the Indian River County agreements to the extent necessary and as ultimately determined by the Sebastian City Council and the Board of County Commissioners of Indian River County. On April 11, 1992, the City and County signed an Agreement whereby the County relinquished its rights to provide retail water and wastewater service in the City and only provide wholesale wastewater service. The effective date of this Agreement was April 22, 1993. The City's primary water treatment facilities are the Sebastian Highlands water treatment plant (WTP) and the Park Place WTP. The Sebastian Highlands WTP treats raw water from the surficial aquifer by utilizing aeration, lime softening, filtration, and disinfection processes. The Sebastian Highlands WTP has a current rated capacity of 0.671 million gallons per day (MGD). The Park Place WTP utilizes aeration and disinfection to treat a rated capacity of 0.1 MGD. The City's primary wastewater treatment facility is the Sebastian Highlands wastewater treatment plant (WWTP). The Sebastian Highlands WWTP, located at 810 Bailey Drive, is an extended aeration activated sludge WWTP design for secondary treatment of municipal sewage, with a total design capacity of 0.3 MGD. The effluent treated at the Sebastian Highlands WWTP is disposed of in a series of percolation ponds, that have a total disposal capacity of 0.142 MGD. The current raw water quality continues to only require the softening process for water treatment. Chlorides are increasing concern in this area of Florida following excessive demands on the fresh water source. These excessive demands on the aquifer have caused a gradual increase in the elevation of the salt water interface with the fresh water source. This interface has increased in elevation to the point where several cities along the east coast have been required to construct desalination facilities. Fortunately, the City of Sebastian is not currently required to construct such facilities. 1.1 The present treatment problems noted at the Sebastian Highlands WTP appear to be caused by the availability of treatment capacity. The Sebastian Highlands WTP is currently operated between the hours of 0700 and 1500, seven (7) days per week. In order to produce the current average daily demand, the plant must be operated at approximately 750 gpm for just over 8 hours per day. The existing treatment facilities at the Sebastian Highlands WTP were designed for a flow rate of 466 gpm. Operating the existing facilities at 750 gpm would understandably cause low treatment efficiency or higher effluent hardness and excessive filter backwashing requirements. There are two (2) alternative methods of correcting these problems. The first method would consist of designing and constructing additional treatment units. Based on the design conditions of the existing units, this would require a second precipitator, one (1) additional filter and associated pumps and yard piping. The second method would consist of operating the facility for longer periods during the day and lowering the flow rate through the plant. The current average daily flow for 1993 was approximately 3701000 gpd. AT the design flow rate of 466 gpm, the operation time for 1994/95 would be increased to approximately 14 hours per day. Modifications of these times can be varied to match scheduling of actual 8 -hour shifts. Based on the current operation of the system, the schedules would have to be matched to ensure the ground storage tank volume did not reach critically low levels. The method recommended would be based partially on the availability of capital funds versus operational funds. The limited fresh water supply experienced in coastal areas of Florida has resulted in the identification and utilization of alternative water resources a source of raw water supply for municipal potable water systems. Potable water withdrawals from the surficial aquifer have resulted in increased chloride concentrations which are an indicator of salt water intrusion into an aquifer. The obvious alternative water supplies that are available as a source of raw water for coastal potable water systems are brackish surface waters, seawater, or high TDS Floridan aquifer water_ Reverse osmosis consists of separating a solvent, such as water, from a saline solution by the use of a semi -permeable membrane and hydrostatic pressure. The flow through the semi -permeable membrane is in the direction of a drop in solvent concentration. This transfer of solvent water through a semi -permeable membrane is referred to as osmosis. Eventually the system will reach equilibrium, where the hydrostatic pressure is referred to as the 'osmotic pressure". If a force is applied to a piston to produce a pressure greater than the osmotic pressure, there will be a transfer of the solvent in the reverse direction. This mass transfer of a solvent using a semi -permeable membrane and a hydrostatic pressure is referred to as reverse osmosis. 1.2 An application of osmotic pressure principles in environmental engineering is in the demineralization of salt -laden (brackish) water by the reverse osmosis process. As the name implies, this process is the reverse of osmosis, and water is caused to flow in a reverse manner through a semi -permeable membrane from brackish water in excess of the osmotic pressure. The semi -permeable membrane acts like a filter to retain the ions and particles in solution on the brackish water side, while permitting water alone to pass through the membrane. Theoretically the process will work if a pressure just in excess of the osmotic pressure is used. In practice, however, a considerably higher pressure is necessary to obtain an appreciable flow of water through the membrane. Also, as fresh water passes through the membrane, the concentration of salts in the brackish water remaining increases, creating a greater osmotic pressure differential. The improvements to the potable water system for the 1995 to 1999 planning period include improvements and expansion of the supply, treatment, storage, high service pumping, transmission and distribution facilities. It has been recommended that the City investigate the feasibility of constructing a third well in the area of the Sebastian Highlands WP to increase the reliable water supply capacity. This modification to the operation will provide the same daily treated water volume for the system, but will operate the plant facilities at a much lower rate. This lower rate should reduce or eliminate the current operational problems at the facility. The improvements to the wastewater system for the 1995 to 1999 planning period include improvements and expansion of the collection, transmission, treatment and effluent disposal facilities. The wastewater collection system requires a continual maintenance program to identify and correct infiltration and inflow (IM contributions. The 1995 to 1999 planning period may also consist of expansion for the existing collection and transmission system to provide service to new customers. The recommended transmission system improvements consist of minor lift station and transmission main improvements to optimize the pumping operation of the entire manifold system and provide system reliability. Modifications to the W WTP has been recommended to provide the necessary facilities to meet the new federal requirements for sludge stabilization prior to land application. 1.3 Both of these options will require additional treatment facilities at the Manly Avenue plant, such as an additional clarifier, filters, additional chlorine contact tankage and effluent storage and pumping facilities. The grove irrigation options are estimated to be most cost effective, however, negotiations and agreements with land owners have been historically difficult and time consuming. The golf course option appears desirable due to the large available capacity and control of the operation, due to City ownership, however, the costs to pump to the golf course are relatively expensive. The costs associated with the ten (10) year planning period (1995-2004) as identified by the consulting engineers reveal the requirement for additional municipal bond financing. The State of Florida has not provided a general law that mandates residential homesite or commercial mandatory water hook-up except as required by the Department of Health and Rehabilitative Service (HRS). However, there are provisions that require mandated hook-up for wastewater. We do not calculate water impact fees into our Utility revenue stream when calculating debt service payments. The following table provides some insight into the dollar requirements for complying with the Utility Masterplan. A. The possibility always exists regarding a change to the quality of the current water processed by the water treatment facility. In the event the quality should decrease and operational costs increase or that the City should elect to build a new 1.0 MGD plant at the Airport property instead of a modular expansion to the current plant, the anticipated costs utilizing 1995 dollars for construction during the 2000-2003 planning period is estimated at $4,566,230. (Page 9-38, Table 9-4, Water & Wastewater Master Plan) B. Capital Improvement costs for the water system during the 1995-1999 planning period is estimated at $1,143,533. (Page 9-35, Table 9-3, Water & Wastewater Master Plan) C. Capital Improvement Costs for the water system during the 2000-2004 planning period is estimated at $5,900,232. (Page 9-41 and 9-43, Water & Wastewater Master Plan) 1.4 WATER RECAP Treatment Plan (Reverse Osmosis) $ 4,566,230 Capital Improvement Costs (1995-1999) 1,143,533 Capital Improvement Costs (2000-2004) 5.900.232 TOTAL: $ 11,609,995 (Less R/O Plant) - 4.566,230 $ 7 04 7 5 WASTEWATER RECAP D. Current treatment capacity for the City wastewater treatment plant is 300,000 gallons per day but the current disposal capability is only 142,000 gallons per day or approximately one-half of the current treatment capacity. Recommended Solutions from the Consulting Engineer: #1 Grove Irrigation (Page 10 -23 -Table 10-6 $ 5767450 #2 Golf Course Spray Irrigation (Page 10-24 _ 742.950 Table 10-7) Costs for both Recommendations $ 1.319.400 1. Capital Improvement Costs for the wastewater system during the 1995 - 1999 planning period. a) Plant Expansion $ 1,803,600 (Page 10-30, Table 10-9) b) Disposal System Upgrade 461,100 (Page 10-32. Table 10-10) c) Recommendation #1 (Above) 576.450 $ 2.841.150 1.5 WASTEWATER RECAP (Continued) 2. Capital Improvement Costs for the wastewater system during the 1999-2004 planning period. a) Wastewater Treatment Plant Improvement $ 2,247,660 b) Miscellaneous Capital & R & R Costs 72,454 $ 2.320.114 TOTAL COSTS ( 1 + 2) RECAP Water treatment, transmission and distribution improvements for the period of 1995- 2004.. $ 11,609,995 Wastewater collection, transmission, treatment and disposal system for the period of 1995-2004._ $ 5.161,264 10 YEAR TOTAL: 1.6 $ 151D 259 EXAMPLE RATE COMPARISON 7/01/95 RESIDENTIAL CUSTOMER - 7,000 GAL WATER PER MONTH WATER RATE CITY COUNTY Billing Charge $ 2.25 $ 2.00 Base Facility Charge 11.25 9.20 0-3000 Gal 7.53 5.25 3001-7000 Gal 11.40 8.60 TOTAL WATER CHARGE $ 32.43 $ 25.05 Billing Charge $ 3.75 $ 2.00 Base Facility Charge 13.00 13.50 0-7000 Gal 26.25 19.93 TOTAL SEWER $ 43.00 $ 35.43 TOTAL $ 75.43 $ 60.48 County Surcharge 3.63 City Tax 7.54 TOTAL BILL $ 82.97 $ 64.11 CITY BILL UNDER COUNTY RATES: 64.11 + City Tax 6.41 S70-52 IMPACT FEE CITY COUNTY WATER $ 1100 $ 1570 SEWER $ 1650 $ 2551 "A STATEMENT OF THE EXISTING RATE BASE OF THE UTILITY FOR REGULATORY PURPOSES" The existing rate base for water and wastewater service is authorized by Ordinance 0-93-19, and the implementation of the specific rates and charges are included within the Utility Rate Resolution R-95-34. The annual rate indexing adjustment is explained in Section 9 of Ordinance 0-93-19 and is stated, in part, as follows: "...The annual rate index shall be the greater of either the Consumer Price Index (CPI) factor or a minimum of 3.0% per year for the fiscal years beginning October 1, 1994 through and including October 1, 1997 and equivalent to the CPI index thereafter". The annual adjustment to water and wastewater fees, rates and charges for the product, services and facilities for the utility system is defined within the Utility System Revenue Bonds covenants. This definition states, in part, that the City has covenanted in the Bond Resolution that net revenues will be adequate at all times in each fiscal year to be equal or greater than 'one hundred fifteen percent (115%) of the annual debt service on all outstanding bonds in such fiscal year." The definition of net revenue includes gross revenue plus investment interest, less the operating expenses for the same accounting period. The operating expenses do not include depreciation or amortization. The follow rate comparison for current City and County utility customers and the potential change associated with the proposed sale is demonstrated on this chart. 4.0 EXAMPLE RATE COMPARISON 7/01/95 RESIDENTIAL CUSTOMER - 7.000 GAL WATER PER MONTH WATER RATE CITY COUNTY Billing Charge $ 2.25 $ 2.00 Base Facility Charge 11.25 9.20 0-3000 Gal 7.53 5.25 3001-7000 Gal 11.40 8.60 TOTAL WATER CHARGE $ 32.43 $ 25.05 SEWER RATE Billing Charge $ 3.75 $ 2.00 Base Facility Charge 13.00 13.50 0-7000 Gal 26.25 19.93 TOTAL SEWER $ 43.00 $ 35.43 TOTAL $ 75.43 $ 60.48 County Surcharge 3.63 City Tax 7.54 TOTAL BILL $ 82.97 $ 64.11 CITY BILL UNDER COUNTY RATES: 64.11 + City Tax 6.41 70 5 IMPACT FEE CITY COUNTY WATER S 1100 $ 1570 SEWER S 1650 $ 2551 4.1 ANTICIPATED REVENUE AND EXPENDITURE FOR DEBT SERVICE PRO -FORMA $17,000,000 DEBT Debt Amount Ann Payment Interest Rate # of Years $ 17,000,000 $ 1,169,690 5.50% 30 Breakdown of Debt Proceeds: $12 m for Water Improvements $ 5 m for Wastewater Improvements Annual Gallons (000s) Avg Water Consump: 103,512 Avg Sewer Consump: 41,520 FY 95 Revenue Water Customers $503,697 # of Customers 1,650 904 Sewer Customers $420,044 Avg Consump/Gust 63,000 46,000 Total Revenue $923,741 Assumptions: a) Customer Growth = 100/6 per Annum b) No Change in BFCs c) Consumption per Customer remains Constant d) New Utility Rate incorporated in FY95 and future revenues e) Expenditure will increase at 5% per Annum Water Sewer Anticipated Surplus/ Customers Customers Revenue Expenditure (Shortage) FY96 1,650 904 $923,741 $1,068,445 ($144,704) FY97 1,815 994 $1,084,383 $2,238,135 ($1,153,752) FY98 1,997 1,093 $1,192,783 $2,350,042 ($1,157,259) FY99 2,197 1,202 $1,312,008 $2,467,544 ($1,155,536) FY00 2,417 1,322 $1,443,205 $2,590,921 ($1,147,716) FY01 2,659 1,454 $1,587,523 $2,720,467 ($1,132,944) FY02 2,925 1,599 $1,746,107 $2,856,490 ($1,110,383) FY03 3,218 1,759 $1,920,929 $2,999,315 ($1,078,386) FY04 3,540 1,935 $2,113,137 $3,149,281 ($1,036,144) FY05 3,894 2,129 $2,324,701 $3,306,745 ($982,044) FY06 4,283 2,342 $2,557,092 $3,472,082 ($914,990) FY07 4,711 2,576 $2,812,604 $3,645,686 ($833,082) FY08 5,182 2,834 $3,094,032 $3,827,970 ($733,938) FY09 5,700 3,117 $3,403,171 $4,019,369 ($616,198) FY10 6,270 3,429 $3,743,638 $4,220,337 ($476,699) FY11 6,897 3,772 $4,118,052 $4,431,354 ($313,302) FY12 7,587 4,149 $4,529,854 $4,652,922 ($123,068) FY13 8,346 4,564 $4,982,986 $4,885,568 $97,418 FY14 9,181 5,020 $5,481,214 $5,129,846 $351,368 FY15 10,099 5,522 $6,029,303 $5,386,339 $642,964 FY16 11,109 6,074 $6,632,166 $5,655,656 $976,510 14.0 City of Sebastian 1225 MAIN STREET 0 SEBASTIAN, FLORIDA 32958 TELEPHONE (407) 589-5330 0 FAX (407) 589-5570 AGENDA SEBASTIAN CITY COUNCIL SPECIAL MEETING WEDNESDAY, JULY 199 1995 - 7:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA ALL AGENDA ITEMS MAY BE INSPECTED IN THE OFFICE OF THE CITY CLERK - 1225 MAIN STREET, SEBASTL4N, FLORIDA PURPOSE: The purpose of the Special Meeting is to conduct a public hearing in accordance with F.S. 180.301 to determine if the sale of the water and wastewater utility is in the public interest 1. CALL TO ORDER 2. ROLL CALL 3. PUBLIC HEARING IN ACCORDANCE WITH 180.301 E.S. A. Presentation - City Manager B. Questions and Answers - General Public C. Discussion - City Council 1 D. Resolution No. R-95-42 - Finding Sale of City of Sebastian Water and Wastewater Facility is in the Public Interest in Accordance with F.S. 180.301 (R-95-42) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, FLORIDA, DIRECTING AND AUTHORIZING THE PURCHASE, SALE, ASSUMPTION AND TRANSFER OF THE REAL AND PERSONAL PROPERTY COMPRISING THE UTILITY SYSTEM OWNED AND UTILIZED BY THE CITY OF SEBASTIAN TO PROVIDE WATER AND WASTEWATER SERVICE; PROVIDING FOR FINDING OF A PUBLIC PURPOSE AND NECESSITY; PROVIDING THAT THE ACQUISITION IS IN THE PUBLIC INTEREST IN CONFORMANCE WITH SECTION 180.301, FLORIDA STATUTES; PROVIDING AUTHORITY TO COMPLETE THE PURCHASE, SALE, ASSUMPTION AND TRANSFER; AND PROVIDING FOR APPLICABILITY AND AN EFFECTIVE DATE. 4. ADJOURN ANY PERSON WHO DECIDES TO APPEAL ANYDECISIONMADE BY THE CITY COUNCIL WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING (OR HEARING) WILL NEED A RECORD OF THE PROCEEDINGS AND MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONYAND EVIDENCE UPON WHICH THE APPEAL IS TO BE HEARD. (286.0105 F.S.) IN COMPLL4NCE WITH THE AMERICANS WITH DISABILITIESACT (ADA), ANYONE WHO NEEDS SPECIAL ACCOMMODATION FOR THIS MEETING SHOULD CONTACT THE CITY'S ADA COORDINATOR AT 589-5330 AT LEAST 48 HOURS INADVANCE OF THIS MEETING. 2 RESOLUTION NO. 95- 42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEBASTIAN, FLORIDA, DIRECTING AND AUTHORIZING THE PURCHASE, SALE, ASSUMPTION AND TRANSFER OF THE REAL AND PERSONAL PROPERTY COMPRISING THE UTILITY SYSTEM OWNED AND UTILIZED BY THE CITY OF SEBASTIAN TO PROVIDE WATER AND WASTEWATER SERVICE; PROVIDING FOR FINDING OF A PUBLIC PURPOSE AND NECESSITY; PROVIDING THAT THE ACQUISITION IS IN THE PUBLIC INTEREST IN CONFORMANCE WITH SECTION 180.301, FLORIDA STATUTES; PROVIDING AUTHORITY TO COMPLETE THE PURCHASE, SALE, ASSUMPTION AND TRANSFER; AND PROVIDING FOR APPLICABILITY AND AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA: SECTION 1. AUTHORITY. Pursuant to Chapters 166 and 180, Florida Statutes, the City Council (the "Council") of the City of Sebastian, Florida (the "City") has all of the powers of local self-government to render municipal services and may exercise any power for municipal purposes, except when expressly prohibited by law. Such power includes the authority to provide for water and wastewater transmission, collection, treatment and disposal services and to acquire and subsequently transfer such utility facilities to the County. SECTION 2. FINDINGS. it is hereby ascertained, determined and declared: (A) The City owns and operates a potable water production, treatment and distribution and a wastewater collection, treatment, disposal and reuse system within and around its incorporated area (the "Sebastian Utility System"). (B) The City Council expressly finds that the purchase, sale and transfer of the Sebastian Utility System to the County resulting in the provision of a County -owned and operated water and wastewater service constitutes a public purpose and is in the best interest of the health, safety and welfare of the City and the inhabitants thereof. Further, the City Council expressly finds that the incorporation of the Sebastian Utility System into the County water and sewer system will provide a greater public use and increased public benefit than the existing uses. SECTION 3. PUBLIC INTEREST DETERMINATION OF PURCHASE. In consideration of the statement prepared by the City Manager and filed at this public hearing set to consider the purchase and sale of the Sebastian Utility System in conformance with Section 180.301, Florida Statutes, the City Council hereby considers the following: (A) The most recently available income and expense statement of the Sebastian Utility System; (B) The most recently available balance sheet for the Sebastian Utility System listing the assets and liabilities showing the amount of contributions -in -aid -of -construction and the accumulated depreciation thereon; (C) A statement of the existing rate base of the Sebastian Utility System for regulatory purposes; (D) The physical condition of the subject facilities; (E) The reasonableness of the consideration to be exchanged between the City and the County and the terms of the interlocal 3 agreement which will govern the transfer of the Sebastian Utility System from the City to the County; (F) The impacts of the contemplated transfer on utility customers now served by the City as well as utility customers served by the County, both positive and negative; (G) Any additional investment required and the ability and willingness of the County to make that investment; (H) The alternatives to the contemplated purchase, sale and transfer and the potential impact on both County and City utility customers if the Sebastian Utility System is not transferred to the County; (I) The ability of the County to provide and maintain high quality and cost effective utility service; and (J) A statement prepared by the City Manager showing: (1) the transfer of the Sebastian Utility System to the County is in the public interest, including a summary of the County's experience in utility operation; and (2) the County has the financial ability to provide, now and in the future, high quality and cost effective utility services. SECTION 4. AUTHORITY TO COMPLETE PURCHASE AND SALE. An interlocal agreement between the County and City entitled "Interlocal Agreement Providing for the Transfer and Assumption of the City of Sebastian Water and Wastewater System" which sets forth the consideration for the purchase, sale, transfer and assumption of the Sebastian Utility System is attached as Exhibit "A" to this Resolution. The City hereby authorizes and directs the Mayor to 3 execute such interlocal agreement on behalf of the City in substantially the form of the agreement attached hereto as Exhibit "A" and to deliver a fully executed copy of same to the Clerk of the Circuit Court for recording pursuant to section 163.01, Florida Statutes. The officials, officers, attorneys and other agents or employees of the City are hereby directed and authorized to do all acts and things required of them by this Resolution and such interlocal agreement, for the full, punctual and complete performance of all of the terms, covenants and agreements contained in this Resolution and such interlocal agreement, and each such official, officer, attorney and other agent or employee is hereby authorized and directed to execute and deliver any and all papers and instruments and to do and cause to be done all acts and things necessary or proper for carrying out the transactions contemplated by this Resolution or such interlocal agreement. SECTION 5. APPLICABILITY AND EFFECTIVE DATE. This Resolution shall be liberally construed to effect the purposes hereof and shall take effect immediately upon its adoption in accordance with applicable law. The foregoing Resolution was moved for adoption by Councilmember by Councilmember a vote, the vote was as follows: . The motion was seconded and, upon being put to Mayor Arthur L. Firtion Vice Mayor Carolyn Corum Councilmember Norma J. Damp Councilmember Ray Halloran Councilmember Louise R. Cartwright 4 The Mayor thereupon declared this Resolution duly passed and adopted this day of , 1995. ATTEST: Kathryn M. O'Halloran, CMC/AAE (Seal) Approved as to Form and Content: Clifton A. McClelland, Jr. City Attorney 5 CITY OF SEBASTIAN, FLORIDA By: Arthur L. Firtion, Mayor PUBLIC HEARING CHAPTER 180.301 FLORIDA STATUTES JULY 19, 1995 TABLE OF CONTENTS PAGE TITLE 1.0-1.8 BACKGROUND PUBLIC HEARING REQUIREMENTS 2.0 INCOME & EXPENSE AUDITED FINANCIAL STATEMENT 3.0-3.2 BALANCE SHEET 4.0-4.1 EXISTING RATE BASE 5.0-5.4 THE PHYSICAL CONDITION OF THE UTILITY FACILITIES 6.0-6.5 REASONABLENESS OF THE SALES PRICE AND TERMS 7.0-7.1 IMPACT OF THE SALE, BOTH POSITIVE AND NEGATIVE 8.0 ADDITIONAL INVESTMENT REQUIRED 9.0 ALTERNATIVES TO THE SALE AND POTENTIAL IMPACT ON UTILITY CUSTOMERS IF THE SALE IS NOT MADE 10.0 ABILITY OF THE PURCHASER TO PROVIDE AND MAINTAIN HIGH QUALITY AND COST EFFECTIVE UTILITY SERVICE 11.0 STATEMENT OF PUBLIC INTEREST 12.0 MAP - SEBASTIAN WATER ASSESSMENT SERVICE AREAS 13.0 COPY OF PROPOSED FINAL DRAFT AGREEMENT 14.0 ENCLOSURES Debt Service Pro -Forma The City of Sebastian is the second most populated municipality in Indian River County, Florida, and is located in the northeast comer of the County on the west bank of the Indian River. The most significant land use feature of the City is the large number of vacant platted residential lots. There are approximately 14,170 platted residential lots of which 5,512 are improved and the remaining 8,658 are unimproved. The large number of platted residential lots are the reason the City is expected to become the most populous municipality in the County during the next 10 years. The land area of the City of Sebastian is approximately 8,643 acres or 13.5 square miles. A large portion of the City of Sebastian is the Sebastian Highlands planned community. This General Development Corporation (GDC) planned community was platted in the 1960's and includes over 13,000 single family residential lots. However, as indicated previously, only a small percentage of the platted lots have been developed at this time. - Between 1986 and December 12, 1990, the City of Sebastian and Indian River County entered into a series of agreements which changed the provisions of water and wastewater service within the incorporated limits of the City. Beginning in 1986, Indian River County and the City of Sebastian held discussions and hearings regarding the County's desire to provide water and wastewater service with the City of Sebastian. At that time, the County was beginning the development of the North County subregional wastewater system and viewed the City of Sebastian as a potential source of customers for this system. At those hearings, the City adopted a series of documents _ which have changed the nature of the provisions, and to some extent, the regulation of water and wastewater service within the City of Sebastian. These initial documents involved Ordinance No. 0-87-01, Resolution Nos. R-87-6 and R-87-7, and an Intergovernmental Agreement between Indian River County and the City of Sebastian. Since 1987, there have been no less than five (5) City Resolutions which have further supplemented the Indian River County Agreements. These included Resolution Nos. R-87-85, R-89-12, R-89-60, R-90-310 and R-90-31. On December 12, 1990, the City entered into a series of agreements relating to the water and wastewater franchises granted to GDU. These agreements transferred to the County all of the City's rights, titles and interests in the water and wastewater franchises granted to GDU, with the exception of the City's right to receive franchise revenues and to regulate rates and charges pursuant to said franchise. - 1.0 On March 5, 1991, the City received an offer from Indian River County to "...relinquish its franchise rights within the City of Sebastian if that was what the City Council wished... ". On April 5, 1991, Special Cotmsel for the City responded to the Board of County Commissioners by accepting the County's offer subject to completion of the ., necessary documents containing terms and conditions applicable to the City and the County so that the agreements, ordinance and resolutions could be rescinded in such a manner as to not impact innocent third parties. Meetings were then held with various County and City officials, including a meeting on April 17, 1991, in which the City and the County agreed to work together in order to "unbuckle" the Indian River County .. agreements to the extent necessary and as ultimately determined by the Sebastian City Council and the Board of County Commissioners of Indian River County. On April 11, _ 1992, the City and County signed an Agreement whereby the County relinquished its rights to provide retail water and wastewater service in the City and only provide wholesale wastewater service. The effective date of this Agreement was April 22, -� 1993. The City's primary water treatment facilities are the Sebastian Highlands water treatment plant (WTP) and the Park Place WTP. The Sebastian Highlands WTP treats raw water from the surficial aquifer by utilizing aeration, lime softening, filtration, and disinfection processes. The Sebastian Highlands WTP has a current rated capacity of 0.671 million gallons per day (MGD). The Park Place WTP utilizes aeration and disinfection to treat a rated capacity of 0.1 MGD. The City's primary wastewater treatment facility is the Sebastian Highlands wastewater treatment plant (WWTP). The Sebastian Highlands WWTP, located at 810 Bailey Drive, is an extended aeration activated sludge WWTP design for secondary treatment of municipal sewage, with a total design capacity of 0.3 MGD. The eluent treated at the Sebastian Highlands WWTP is disposed of in a series of percolation ponds, that have a total disposal capacity of 0.142 MGD. The current raw water quality continues to only require the softening process for water treatment. Chlorides are increasing concern in this area of Florida following excessive demands on the fresh water source. These excessive demands on the aquifer have caused a gradual increase in the elevation of the salt water interface with the fresh water source. This interface has increased in elevation to the point where several cities along the east coast have been required to construct desalination facilities. Fortunately, -� the City of Sebastian is not currently required to construct such facilities. The present treatment problems noted at the Sebastian Highlands WTP appear to be caused by the availability of treatment capacity. The Sebastian Highlands WTP is currently operated between the hours of 0700 and 1500, seven (7) days per week. In order to produce the current average daily demand, the plant must be operated at approximately 750 gpm for just over 8 hours per day. The existing treatment facilities at the Sebastian Highlands WTP were designed for a flow rate of 466 gpm. Operating the existing facilities at 750 gpm would understandably cause low treatment efficiency or higher eluent hardness and excessive filter back -washing requirements. There are two (2) alternative methods of correcting these problems. The first method would consist of designing and constructing additional treatment units. Based on the _ design conditions of the existing units, this would require a second precipitator, one (1) additional filter and associated pumps and yard piping. The second method would consist of operating the facility for longer periods during the day and lowering the flow rate through the plant. The current average daily flow for 1993 was approximately 370,000 gpd. AT the design flow rate of 466 gpm, the operation time for 1994/95 would be increased to approximately 14 hours per day. Modifications of these times can be varied to match scheduling of actual 8 -hour shifts. Based on the current operation of the system, the schedules would have to be matched to ensure the ground storage tank volume did not reach critically low levels. The method recommended would be based partially on the availability of capital funds versus operational funds. The limited fresh water supply experienced in coastal areas of Florida has resulted in the identification and utilization of alternative water resources a source of raw water supply for municipal potable water systems. Potable water withdrawals from the surficial aquifer have resulted in increased chloride concentrations which are an ., indicator of salt water intrusion into an aquifer. The obvious alternative water supplies that are available as a source of raw water for coastal potable water systems are brackish surface waters, seawater, or high TDS Floridan aquifer water. Reverse osmosis consists of separating a solvent, such as water, from a saline solution by the use of a semi -permeable membrane and hydrostatic pressure. The flow through the semi -permeable membrane is in the direction of a drop in solvent concentration. This transfer of solvent water through a semi -permeable membrane is referred to as osmosis. Eventually the system will reach equilibrium, where the hydrostatic pressure is referred to as the 'osmotic pressure". If a force is applied to a piston to produce a pressure greater than the osmotic pressure, there will be a transfer of the solvent in the reverse direction. This mass transfer of a solvent using a semi -permeable membrane and a hydrostatic pressure is referred to as reverse osmosis. 1.2 M An application of osmotic pressure principles in environmental engineering is in the demineralization of salt -laden (brackish) water by the reverse osmosis process. As the name implies, this process is the reverse of osmosis, and water is caused to flow in a reverse manner through a semi -permeable membrane from brackish water in excess of the osmotic pressure. The semi -permeable membrane acts like a filter to retain the ions and particles in solution on the brackish water side, while permitting water alone to pass through the membrane. Theoretically the process will works if a pressure just in excess of the osmotic pressure is used. In practice, however, a considerably higher pressure is necessary to obtain an appreciable flow of water through the membrane. Also, as fresh water passes through the membrane, the concentration of salts in the brackish water remaining increases, creating a greater osmotic pressure differential. The improvements to the potable water system for the 1995 to 1999 planning period include improvements and expansion of the supply, treatment, storage, high service pumping, transmission and distribution facilities. It has been recommended that the City investigate the feasibility of constructing a third well in the area of the Sebastian Highlands WP to increase the reliable water supply capacity. This modification to the operation will provide the same daily treated water volume for the system, but will operate the plant facilities at a much lower rate. This lower rate should reduce or eliminate the current operational problems at the facility. .. The improvements to the wastewater system for the 1995 to 1999 planning period include improvements and expansion of the collection, transmission, treatment and effluent disposal facilities. The wastewater collection system requires a continual maintenance program to identify and correct infiltration and inflow (UI) contributions. The 1995 to 1999 planning period may also consist of expansion for the existing collection and transmission system to provide service to new customers. The recommended transmission system improvements consist of minor lift station and transmission main improvements to optimize the pumping operation of the entire manifold system and provide system reliability. Modifications to the WWTP has been recommended to provide the necessary facilities to meet the new federal requirements for sludge stabilization prior to land application. 1.3 Both of these options will require additional treatment facilities at the Manly Avenue plant, such as an additional clarifier, filters, additional chlorine contact tankage and effluent storage and pumping facilities. The grove irrigation options are estimated to be most cost effective, however, negotiations and agreements with land owners have been '• historically difficult and time consuming. The golf course option appears desirable due to the large available capacity and control of the operation, due to City ownership, however, the costs to pump to the golf course are relatively expensive. The costs associated with the ten (10) year planning period (1995-2004) as identified by the consulting engineers reveal the requirement for additional municipal bond financing. The State of Florida has not provided a general law that mandates residential homesite or commercial mandatory water hook-up except as required by the Department of Health and Rehabilitative Service (HRS). However, there are provisions that require mandated hook-up for wastewater. We do not calculate water impact fees into our Utility revenue stream when calculating debt service payments. The following table provides some insight into the dollar requirements for complying with the Utility .. Masterplan. A. The possibility always exists regarding a change to the quality of the current water processed by the water treatment facility. In the event the quality should decrease and operational costs increase or that the City should elect to build a new 1.0 MGD plant at the Airport property instead of a modular expansion to the current plant, the anticipated costs utilizing 1995 dollars for construction during the 2000-2003 planning period is estimated at $4,566,230. (Page 9-38, Table 9-4, Water & Wastewater Master Plan) B. Capital Improvement costs for the water system during the 1995-1999 planning period is estimated at $1,143,533. (Page 9-35, Table 9-3, Water & Wastewater Master Plan) C. Capital Improvement Costs for the water system during the 2000-2004 planning period is estimated at 55,900,232. (Page 9-41 and 9-43, Water & Wastewater Master Plan) '� 1.4 WATER RECAP Treatment Plan (Reverse Osmosis) S 4,566,230 Capital Improvement Costs (1995-1999) 1,143,533 Capital Improvement Costs (2000-2004) 5.900 232 TOTAL: S 11,609,995 (Less R/O Plant) - 4J66130 S 7.043.765 dW WASTEWATER RECAP D. Current treatment capacity for the City wastewater treatment plant is 300,000 gallons per day but the current disposal capability is only 142,000 gallons per day or approximately one-half of the current treatment capacity. •. Recommended Solutions from the Consulting Engineer: #1 Grove Irrigation (Page 10 -23 -Table 10-6 S 576,450 _ 42 Golf Course Spray Irrigation (Page 10-24 _ 742.950 Table 10-7) Costs for both Recommendations S 1.319.400 1. Capital Improvement Costs for the wastewater system during the 1995 - 1999 planning period. a) Plant Expansion S 1,503,600 ., (Page 10-30, Table 10-9) b) Disposal System Upgrade 461,100 (Page 10-3 2. Table 10-10) . c) Recommendation #1 (Above) 576.450 S 2.841.150 M M 1.5 WASTEWATER RECAP (Continued) 2. Capital Improvement Costs for the wastewater system during the 1999-2004 planning period. a) Wastewater Treatment Plant Improvement S 2,247,660 b) Miscellaneous Capital & R & R Costs 72.454 S"_"x_0.114 TOTAL COSTS ( 1 -i- 2) = S 5.161.264 RECAP .. Water treatment, transmission and distribution improvements for the period of 1995- 2004.. S 11,609,995 .. Wastewater collection, transmission, treatment and disposal system for the period of 1995-2004.. $ 5.161.264 10 YEAR TOTAL. S 16.771259 M M M 1.6 ^ In the event the City Council decision is to maintain a City owned utility system, we will require outside (non -City government) financing. The current estimate for the 10 year period (1994-2004) is $16,771,259, as expressed in 1994 dollars. Because the funds are not required at the same time, we would probably utilize a combination of bank and municipal bond financing. The prognosis for future grant monies is almost slim to none because of the drastic reduction in federal funding. As a result, the ., additional debt service requirements would require the utility rate to increase. According to the Masterplan, we currently need 51,143,533 for water improvements and 52,841,150 for wastewater improvements for a total of 53,984,683. The treatment capability of the water and wastewater plants will require funding to expand capacity and be in place prior to the year 2004. This amount, as estimated in 1994 dollars by the consulting engineers is $10,466,462 for water (54,566,230 + $5,900,232) and $2,320,114 ($2,247,660 + $72,454) for wastewater, for a total of $12,786,576. The following reflects this total dollar requirement. Water 51,143,533 + 10,466,462 = 5 11,609,995 Wastewater 2.841.150 + 2.320,114 = 5.161264 ^ $ 3.984.683 + $12.78b_576 = 16.771259 These figures do not reflect the borrowing cost (ie attorney, CPA, etc) but are directly related to the utility rate schedule. The normal and usual computation to determine earnings to debt service ratio is the difference between operating income less the operating expense, which must be greater than the debt service payment (principal + interest) for the fiscal year by at least 10%. The following illustration is a current example for the $5,000,000 municipal bond issue of 1993. Operating Income 5 XXX,XXX (Does not include impact fee, contributions in aid, etc.) Less - Operating Expense 3 XXX,XXX (Does not include depreciation, amor+dzation, or interest expense) Equals Operating Profit (Loss) $ XXX_XXX ^ 1.7 The debt service payment from the bond schedule is now compared to the operating .. profit (lost) figure. If this figure is less than the debt service payment figure for this fiscal year, the operating income (derived from utility rates) is either to low or the operating expenses (personal services, materials, operating supplies) are to high. After the analysis, the appropriate action is taken to effect change (ie, either increase utility rates or lower operating costs or a combination of both) that will provide a net result .. of increasing the positive difference between operating income and operating expenses. M The current financial statement for the City Utilities demonstrated the need for the analysis because the difference between operating income and expense was to low. Since the personal service expense was low and material purchases were low, the operating income required an adjustment. This was accomplished by increasing the utility rates. If we incur additional debt service through borrowing, it is evident that our current utility rates will require an immediate adjustment to pay for borrowing 53,984,683. Then, within an additional four (4) years we will need an additional 512,786,576. The alternative is to join the County Utility System and maintain the capability to provide water and wastewater service at a reasonable utility rate. The County Utility System has the capacity to service the City without depending upon additional large scale borrowing. 1.8 OR do "THE MOST RECENT AVAILABLE INCOME AND EXPENSE STATEMENT FOR THE UTILITY" M UTILITIES FUND CITY OF SEBASTIAN, FLORIDA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS (ACCUMULATED DEFICIT) YEAR ENDED SEPTEMBER 30, 1994 OPERATING REVENUES Charges for services S 889.780 OPERATING EXPENSES an M 2.0 Personal services 208,868 Material, supplies and other operating expenses 559,225 Depreciation 156,696 Amortization 6.087 TOTAL OPERATING EXPENSES 930.876 _ OPERATING LOSS (41.096) .. NON-OPERATING REVENUES (EXPENSES) Interest income 37,811 Interest expenses (203.840) TOTAL NON-OPERATING REVENUES (EXPENSES) (166.029) .� NET LOSS, BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE (207.125) CUMULATIVE EFFECT OF ACCOUNTING CHANGE ON YEARS PRIOR TO 1994 (33.455) NET LOSS (240,580) RETAINED EARNINGS, BEGINNING OF YEAR. 32.355 ACCUMULATED DEFICIT, END OF YEAR S 208.225) an M 2.0 ift THE MOST RECENT AVAILABLE BALANCE SHEET FOR THE UTILITY, LISTING .. ASSETS AND LIABILITIES AND CLEARLY SHOWING THE AMOUNT OF CONTRIBUTIONS - IN - AID - OF CONSTRUCTION AND THE ACCUMULATED DEPRECIATION THEREON". UTILITIES FUND CITY OF SEBASTIAN, FLORIDA BALANCE SHEET SEPTa1BER 30, 1994 so ASSET S CURRENT ASSETS Cash and cash equivalents S 616,929 investments 402,Z74 Accounts receivable 93,689 Inventory 9.156 TOTAL CURRENT ASSETS 1,122,048 RESTRICTED ASSETS ., Investments 356,294 OTHER ASSETS Unamortized bond issue - costs, less accumulated amortization of S6,087 252,598 PROPERTY, PLANT AND EQUIPMENT, less �. accumulated depreciation of 5169,143 1.227.707 TOTAL ASSETS S:Z.958.647 M LIABILITIES AND FJND EOUITY CURRENT LIABILITIES Accounts payable and accrued liabilities S 78,021 Due to other funds 130,000 .. Accrued compensated absences 6.196 TOTAL CURRENT LIABILITIES 214,217 LONG-TERM LIABILITIES Bond payable, less unamortized discount of 58,228 4.991.772 TOTAL LIABILITIES 5.205.989 FUND EQUITY Contributed capital 960.883 .. Accumulated - deficit -Reserve for debt service 316,294 Unreserved (564.519) TOTAL ACCUMULATED DEFICIT. (208.225) TOTAL FUND EQUITY 752.658 TOTAL LIABILITIES AND FUND EQUITY 55.958.647 3.0 L] .. UTILITIES FUND CITY OF SEBASTIAN, FLORIDA STATEMENT OF CASH FLOWS YEAR ENDED SEPTEMBER 30, 1994 3.1 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers and users S 883,113 Cash paid to suppliers (527,954) Cash paid to employees (204.960) NET CASH PROVIDED BY OPERATING ACTIVITIES 150.194 CASH FLOWS FROM NON -CAPITAL FINANCING: Proceeds from other funds 130,000 Payments to other governments (10,612) Accounts receivable purchased (51.967) NET CASH PROVIDED BY NON -CAPITAL FINANCING ACTIVITIES 67.421 CASH FLOWS FROM CAPITAL AND RELATED FINANCING . ACTIVITIES: Proceeds from revenue bonds issued 1,346,018 Proceeds from impact fees 232,329 Bond issue costs (88,185) Interest paid (203,840) Payments for capital acquisitions (224.497) NET CASH PROVIDED BY FINANCING ACTIVITIES 1.061.825 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of investments (707,938) Interest earned on investments 37.811 NET CASH USED IN INVESTING ACTIVITIES (670.127) NET INCREASE IN CASH 509,318 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 7.611 CASH AND CASH EQUIVALENT, END OF YEAR S 915.929 3.1 UTILITIES FUND CITY OF SEBASTIAN, FLORIDA STATEMENT OF CASH FLOWS (CONTINUED) YEAR ENDED SEPTEMBER 30, 1994 .. RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating loss S (41.096) Adjustments to reconcile operating lass ., to net cash provided by operating activities: Depreciation 156,696 Amortization 6,087 Increase in accounts receivable (6,667) Increase in inventory (8,653) Increase in accounts payable and accrued �. liabilities 42,036 Increase in accrued compensated absences 1.796 Total adjustments 191.295 CASH PROVIDED BY OPERATING ACTIVITIES S 150.199 SUPPLEMENTARY DISCLOSURE OF NONCASH TRANSACTIONS: During fiscal 1994, the City issued $5,000,000 Utility System Revenue Bands .. Series 1993 (see Note 3C) .in order to purchase a utility plant and related equipment. This transaction resulted in the following effects: NONCASH EFFECTS Proceeds from issuance 55,000,000 Customer deposits received 40,945 Accrued interest received 10,728 Impact fees received 10,351 Unamortized band issue costs (170,500) Plant and equipment acquired (3,485,088) .. Bond discount (8,451) CASH EFFECTS .. Cash received (1,346,018) Accounts receivable purchased (51.967) Net effect S 3.2 so "A STATEMENT OF THE EXISTING RATE BASE OF THE UTILITY FOR REGULATORY PURPOSES" M go WATER SYSTEM MONTHLY RATE SCHEDULE M (1) Definition. As used herein, the following terms shall have the following meaning: M (a) "Residential" means an individual dwelling unit designed for more or me MN less permanent household occupancy which would include individual cooking and bathing facilities. Examples are a single family home, efficiency apartment unit, cooperative apartment unit, duplex unit, and multi - family residential building unit. (b) "General Services" means a use of land or a building for non-residential purposes, but shall include a residential use which has identifiable "general service" characteristics, as the term is used herein, both of which use the same water meter. Examples are hotels, motels, commercial business, rooming houses, buildings into so which the public is invited and not designed for household occupancy and not including cooking and bathing facilities. (2) Schedule. The City Council hereby adopts the water system monthly rate schedule set forth herein. The rates, fees and charges in the following schedule shall apply to each customer of the water system beginning with the charges payable by the customer in connection with the first reading of the customer's water meter by the City or the first monthly billing by the City after the City adopts the rates presented herein. The water system monthly rate schedule is as follows: M 4.0 M (Continued) Residential and Multi -Family Service: Monthly Rates Billing Charge $ 2.25 per Bill Base Facility Charge 11.25 per ERU Volumetric Charge 0-3,000 gallons 2.51 per 1,000 gallons r 3,001-7,000 gallons 2.85 per 1,000 gallons 7,001-13,000 gallons 3.20 per 1,000 gallons Above 13,000 gallons 5.20 per 1,000 gallons r r 4-1 General Service: r Billing Charge S 2.25 per Bill Base Facility Charge 5/8 inch 11.25 per meter r 1 inch 28.15 per meter 1 1/2 inch 56.25 per meter 2 inch 90.00 per meter 3 inch 180.00 per meter 4 inch 281.25 per meter 6 inch 562.50 per meter _ Volumetric Charge: Block 1 (1) 2.51 per 1,000 gallons .. Block 2 (1) 2.85 per 1,000 gallons Block 3 (1) 3.20 per 1,000 gallons Block 4 (1) 5.20 per 1,000 gallons r 1. The following tabulations summarizes the usage block levels by meter size for the commercial class based on equivalent residential factors by meter size. r General Service General Service General Service General Service First Block Second Block Third Block Fourth Block Meter Size Usage Threshold Usage Threshold Usage Threshold Usage Threshold 3/4 inch 3,000 7,000 13,000 Above 13,000 1 inch 7,500 17,500 32,500 Above 32,500 r 1 1/2 inch 15,000 35,000 65,000 Above 65,000 2 inch 24,000 56,000 104,000 Above 105,400 ., 3 inch 48,000 112,000 208,000 Above 208,000 4 inch 75,000 175,000 325,000 Above 325,000 6 inch 150,000 350,000 650,000 Above 650,000 r r 4-1 MIR (Continued) moo M (3) Annual Rate Indexing Adjustment. Pursuant to Section 9, Ordinance 0-93-19, the City hereby adopts an annual automatic rate increase to all rates, fees and charges set forth herein and which shall be applied to such rates and charges which are in effect immediately ON prior to the effective date of each such annual increase. The purpose of such annual rate indexing. is to provide annual rate adjustments commensurate with the escalation of utility operating expenditures and inflation. The annual rate index shall be the greater of either the ON Consumer Price Index (CPI) factor or a minimum of 3.0% per year for the fiscal years beginning October 1, 1994 through and including October 1, 1997 and equivalent to the CPI index thereafter. Each annual increase shall take effect and be imposed on bills rendered on and after October 1st of each fiscal year. 4.2 M WASTEWATER SYSTEM MONTHLY RATE SCHEDULE (1) Definition. As used herein, the following terms shall have the following • (a) "Residential" means an individual dwelling unit designed for more or less permanent household occupancy which would include individual cooking and bathing facilities. Examples are a single family home, efficiency apartment unit, cooperative apartment unit, duplex unit, and multi -family residential building unit. (b) "General Service" means a use of land or a building for non-residential purposes, but shall include a residential use which has identifiable "general service" characteristics, as the term is used herein, both of which use the same water meter. Examples are hotels, motels, commercial business, rooming houses, buildings into M which the public is invited and not designed for household occupancy and not on including cooking and bathing facilities. (2) Schedule. The City Council hereby adopts the wastewater system rate schedule set forth herein. The rates, fees and charges in the following schedule shall apply to each customer of the wastewater system beginning with the charges payable by the customer in connection with the first reading of the customer's water meter by the City or the first monthly billing by the City after the City adopts the rates presented herein. The wastewater system monthly rate schedule is as follows: 4.3 (Continued) Residential and Multi-Familv Service: Billing Charge Base Facility Charge (*) ., Volumetric Charge 0 - 10,000 gallons Commercial Service: Billing Charge Base Facility Charge (*) 5/8 inch 1 inch 1 1/2 inch 2 inch 3 inch 4 inch 6 inch Volumetric Monthlv Rate: $ 3.75 Per Bill 13.00 Per ERU 3.75 per 1,000 all of all metered water use (maximum of 10,000 gallons of service per ERU) $ 3.75 per bill 13.00 per meter 32.50 per meter 65.00 per meter 104.00 per meter 208.00 per meter 325.25 per meter 650.50 per meter 3.75 Per 1,000 gallons Abnormal Strength Waste Surcharge Factor - See Below (*) Amounts shown are the base facilities charged when lines are available. When lines not available, the base facility charge will be equal to one (1/2) the amount shown. (3) Annual Rate Indexing Adjustment. Pursuant to Section 9, Ordinance 0-93-19, the City hereby adopts an annual automatic rate increase to all rates, fees and charges set forth herein and which shall be applied to such rates and charges which are in effect immediately prior to the effective date of each such annual increase. The purpose of such annual rate indexing is to provide annual rate adjustments commensurate with the escalation of utility operating expenditures and inflation. 4.4 �1 M M (Continued) The annual rate index shall be the greater of either the Consumer Price Index (CPI) factor or a minimum of 3.0% per year for the fiscal years beginning October 1, 1994 through and including October 1, 1997 and equivalent to the CPI index thereafter. Each annual increase shall take effect and be imposed on bills rendered on and after October 1st of each fiscal year. (*) Abnormal Strength Waste Surcharge Factor (SF) - The SF is determined by the ratio of Bio -Chemical Oxygen Demand (BOD) or Chemical Oxygen Demand (COD) and Total Suspended Solids in excess of 300 parts per million (ppm) by the following formula: SF = (BOD (ppm) or COD (ppm) - 300 ppm) + (TSS (ppm - 300 ppm) ) Whichever is greater 300 ppm Monthly Sewage Charge = (1 + SF) x Normal Sewage Use 4.5 COMPARISON SCHEDULE FOR WATER AND WASTWATER RATES CITY vs COUNTY AS OF 7-1-95 M me .. 4.6 RATES (Residential) CITY COL-NTY A. WATER 1. Billing Charge Per Account S 2.25 S 2.00 2. Base Facilities Charge Per ERU 11.25 9.20 3. Base Facility Charge - When capacity is reserved N/A 4.60 but lines are not available Per ERU 0-3000 Gal Per Month 2.51 1.75 3 00 1-7000 Gal Per Month 2.85 2.15 7000 Gal + Per Month 3.20 2.55 Excess Vol Surcharge for use greater than 5.20 2.30 13,000 gal per month per ERU B. SEWER 1. Billing Charge Per Account S 3.75 S 2.00 2. Base Facilities Charge Per ERU 13.00 13.50 3. Base Facility Charge - When capacity is reserved 6.50 6.75 but lines are not available Per ERU 4. Vol Charge - Calculated as 85% of water use 3.75(City 3.35 Per 1000 gal - 10,000 Bills Against Total) 5. Excess Vol Surcharge for use greater (City has 10,000 4.45 than 11,000 gal per month per ERU, gal. cap for sewer) per 1000 gal M me .. 4.6 * IMPACT FEES ■• 1. Water (Per ERU) Treatment & Storage Transmission Total 2. Sewer (Per ERU) Treatment & Sludge Disposal Effluent Disposal Transmission Total CITY COUNTY S 973 $ 597 S 1,100 S 1,570 S 1,159 S 716 S 676 $ 1,650 $ 2,551 * Impact fees for 1994 and subsequent years will be increased in proportion to the Engineering news record construction index applicable to Indian River County. 4.7 • "THE PHYSICAL CONDITION OF THE UTILITY FACILITIES BEING PURCHASED OR SOLD" The water system consists of two water treatment plants, approximately 35 miles of pipe, M 149 fire hydrants, and 1,910 water services. The largest system is the Sebastian Highlands system which supplies water to Units 7, 9, 12, 14, 15 and portions of Units 8, 10, 11 , 16, and M 17. The water treatment plant located at 170 Filbert Street was constructed in 1982. The source of raw water supply is the shallow aerator and consists of two (2) raw water supply wells each 100 feet deep. The plant is permitted as a 671,000 gallon per day treatment facility although the St Johns River Water Management District has permitted the addition of a third 'm well for a total withdrawal of 190,000 gallons per day. am The treatment process at the Frlbert Street plant consists of aeration, lime softening, filtration, M and disinfection. The finished water is stored in a 500,000 gallon ground storage tank. It is pumped to the distribution system by high service pumps. Presently, the aerator is functioning well but the screens on the aerator are being replaced. The precipitator for the lime softening has been shut down for repairs. There is a restriction in the overflow pipe from the precipitator to the filters which has not yet been removed. However, lime softening is not an essential part of treatment required by the Department of Environmental Protection, since it only provides treatment for hardness of water. The 400 and 600 gallon per minute high service pumps are working well but the 250 gallon per minute pump does not work and must be replaced. The plant has a 350KW emergency diesel powered generator which provides power for the entire plant when a power outage occurs. Enough water is usually produced during an 8 hour shift to supply all of the needs of the 1659 customers on the system. The plant can be considered to be in average to good condition. The Sebastian Highlands water transmission and distribution system consists of over 31.3 miles (approximately 165,400 feet) of pipeline ranging in size from 2 to 16 inches in diameter consisting of combination of polyvinyl chloride (PVC), asbestos cement (AC), and ductile iron (DQ pipe. 5.0 The following table silmmarizes the quality of water distribution and transmission pipe limes for the Sebastian Highlands water system: Pipe Material Diameter Size Type Linear Feet 16 -inch transmission Ductile Iron 14,400 12 -inch transmission Ductile Iron 25,826 10- inch transmission PVC (1) 1,700 8 -inch transmission PVC (1) 7,780 _ 6 -inch tmis mission PVC (1) 2,200 6 -inch distribution PVC or AC (2) 101,537 4 -inch distribution AC (2) 10,500 3 -inch distributionAC (2) 840 2 -inch distribution AC (2) 600 Total 165,383 Notes: (1) PVC = Polyvinyl Chloride (2) AC = Asbestos Cement The City has experienced no problems with transmission and distribution piping since it purchased the system in December 1993. The pressure in the system is normally maintained between 53 and 63 psi which meets the fire flow requirements of the City of Sebastian. The water distribution system includes U'3 fire hydrants throughout the service territory. Most of the hydrants are in average to good condition. There are 1,651 service connections to date, the majority of which are 3/4" polyethylene service lines connected to 5/8" x 3/4" meters to serve residential houses. Larger service lines provide water to the Pelican Island Elementary School, Sebastian Lakes Condominiums, Food Lion Supermarket, and the Sebastian Elementary School- The service lines are considered in good to excellent condition with the exception being in Unit 9 where many of the services y are galvanized steel pipes which fail from time to time due to rusted connections over their 30 year existence. 5.1 There are several different types of water meters within the system. Unfortunately, the City does not have the personnel to test each one for accuracy so many of them could be reading lower than they should be due to age which will normally slow down the meter. A majority of the meter boxes need to have the dirt removed within which has accumulated and covered the meter but majority of the meter boxes themselves are in good condition. The Park Place / Palm Lake Chub system consists of a 100,000 gallon per day water treatment plant, two shallow raw water wells, approximately 3.3 miles of water main, and 16 fire hydrants and 260 services. The water plant at 1000 Barber Street is a prefabricated steel .. plant placed in service in 1985 which provides aeration and disinfection of the water. The plant has a 32,000 gallon ground storage tank and a 5,500 gallon hydropneuunatic tank The .. plant is fully automatic over a 24 hour period but does not have an emergency generator to operate the plant during power outages. Basically, the plant is in very good to excellent condition. The water distribution system serves only the two mobile home park developments known as Park Place and Palm Lake Club in the southeast portion of the City. The transmission and distribution system consists of 17,315 linear feet of polyvinyl chloride (PVC) water main ranging from 6" to 12" inches in diameter as summarized in the table below: Pipe Material Diameter Size Type Linear Feet 6 -inch PVC 9,970 8 -inch PVC 5,520 10 -inch PVC 765 12 -inch PVC 1.060 Total 17,315 The pipe in the distribution system is in excellent condition. 5.2 M M M Due to improper restraint of a dead end line, there was only one failure which occurred in 1994 of an 8" water main. The 16 fire hydrants are in good to excellent condition. There are approximately 260 service connections to date most of which are polybutyiene. The City has experienced several failures of these service lines due to poor installation procedures. These services are in fail to good condition. There seems to be an insufficient amount of shut off valves in the Park Place Mobile Home Park and insufficient amount of fire hydrants in the area of Heather Way and East and South Derry Drives. Several blowoffs for dead end conditions appear to be under the pavement. WASTEWATER SYSTEM The Sebastian Highlands wastewater treatment plant consists of a 300,000 gallon per day M extended aeration activated sludge wastewater facility provided with screening aeration, secondary clarification, liitration and chlorine disinfection. The plant, which is located at 810 Bailey Drive, was built in 1982. Unfortunately, the wastewater plant percolation ponds are limited to a permitted capacity of 142,000 gallon per day due to the effluent disposal limitation. The sludge generated at this facility is treated utilizing an aerobic digestion process. Liquid sludge is then hauled from the site by a private sludge hauling contractor and disposed of on permitted agricultural sites in SL Lucie County. The effluent disposal facilities consist of three (3) percolation pond with a total disposal capacity of 0.142 MGD. M 5.3 The wastewater collection system consists of approximately 200 manholes, and 48,900 linear feet of 8" diameter gravity sewer. The wastewater transmission system consist of force mains ranging in size from 2 to 8 inches in diameter and six (6) sewer lift stations. The .� wastewater collection and transmission system, the treatment plant and effluent disposal _ facilities are in average to above-average condition_ The lift stations are all duplex submersible pump stations with the exception of Lift Station No. 1 which has a dry can / wet ^ well combination. This station has recently been plagued with problems since the dry can was inundated in early May. One pump is still not operational. 'Mere is a small residential station at 813 Bailey Drive which has recently failed for the second time this year. It is still not operational but repairs are in progress and it should be back on line soon. Other stations that the City maintains are located at the Sebastian Elementary School, Captain Hiram's, and at Sebastian City Hall. These stations are considered to be in above average to excellent condition. ^ The Park Place/Palm Lake Club wastewater system consists of 62 manholes, 15,390 linear feet of 8" diameter PVC gravity sewer main, go bear feet of 4" diameter PVC force main, and one sewage lift station. There are 260 customers connected via PVC sewer laterals to ^ the wastewater system which eventually terminates at the Indian River County Regional Lift Station north of Barber Street and east of the entrance to Park Place. The lift station pumps the sewage into a force main which runs south along US 1 and Old Dixie Highway to the County's wastewater treatment plant at Hobart Park The condition of the wastewater system in Park Place and Palm Lake Club is considered to be excellent. OR (utl-cond) so 5.4 go .. M M "THE REASONABLENESS OF THE PURCHASE OR SALES PRICE AND TERMS" The City of Sebastian and the Indian River County Utility Department have been examining the possibility and feasibility of the acquisition of the City of Sebastian Water and Wastewater System by the Indian River County Utility Department since May 1994. On April 25, 1995, a copy of the final draft relative to the possible purchase was forwarded to the Mayor and each member of City Council. This proposed Agreement between Indian River County Board of County Commissioners and the City of Sebastian was agendized for the regular scheduled meeting of the City Council of May 10, 1995. The City Attorney was provided recommendations from City Council and the proposed Agreement was to be refined and reviewed with the County Attorney and Bond Counsel before placing into final draft form. The above actions covering a period of twelve (12) months provides the basis for the reasonableness of the purchase of the City of Sebastian Water and Wastewater Utility System by Indian River County. 6.0 C1 doe City of Sebastian 1225 MAIN STREET 0 SEBASTIAN, FLORIDA 32958 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 1 May 31, 1994 „y Mr. James Chandler Indian River County Administrator 1840 25th Street Vero Beach, FL 32960 Dear Jun: The purpose of this letter is to request your assistance in evaluating the possibility of some type of City -County cooperative effort for Utilities (water and sewer). As I understand the past decision of the City and County, the water distribution and sewer collection responsibility involved within a specific franchise area has been relinquished to the City of Sebastian. However, my overview indicates the City is not fully prepared to assume the awesome task independently. I would like therefore, to meet with designated members of your staff and discuss various alternatives. as I realize that it is budget time and your staff may not be readily available. However, any date and time that is available is acceptable, except for the week of June 13th, 1994. Thank you for your consideration Sincerely, ILL. Koford ity Manager /jmt cc: Mayor Firtion & Sebastian City Council Members Richard Votapka, Utilities Director 6.1 City of Sebastian 1225 MAIN STREET C1 SEBASTIAN, FLORIDA 32958 TELEPHONE (407) 589-5330 C3 FAX (407) 589-5570 • 'o October 20, 1994 kR'p s Mr. James Chandler Indian River County Administrator 1840 25th Street Vero Beach, FL 32960 Dear Jim: The City Council has authorized me to contact Indian River County and determine whether or not the County would be amenable to a proposal from the City of Sebastian_ This proposal is in regards to the water distribution and wastewater collection systems of the City utility system. Our proposal includes the sale and transfer of all the assets of the City utility system and establish a thirty (30) year franchise arrangement with the Indian River County Utility Department to provide potable water distribution and wastewater collection for the City of Sebastian. As you know, the City recently purchased the General Development Utility (GDU) which consists of water and wastewater treatment facilities. However, the County, because of the size of its utility system can obtain economies of scale which are not available .. to the City. It is our opinion, that the future needs of the citizens of Sebastian and the North County area can best be served by a common single managed utility. In this regard, we propose the following: (1) Transfer of Current Assets: S 3,650,000 ., ON (2) Transfer Indian River Drive Water Distribution Project Estimated Value: S (3) Cash Contribution: TOTAL 6.2 750,000 S 600,000 This proposal is subject to arrangements being formalized whereby the City can defease the utility bond issue and the agreement reduced to writing and obtaining the approval of the City Council, City Attorney and Bond Counsel. The City requests that if you are interested in this proposal that you also consider the possibility of maintaining a satellite office within the City for customer service functions. Additionally, we currently have six (6) employees that would be effected by the transfer, and could be available for employment with the County. �• My staff and I are available to provide the supporting documentation necessary for your review or to meet with you and your staff. I am also enclosing a copy of the current final year budget for our Utilities. Thank you for your interest in this matter of mutual concern. Sincerely, JLK/jmt Enclosure Doe, 1CL. Kofo City Manager 6.3 OW an M no Telephone:(407) 567-8000 BOARD OF COUNTY COMMISSIONERS 1840 25th Street, Vero Beach, Florida 32960 Suncom Telephone: 224.1011 April 21, 1995 Joel L. Koford, City Manager City of Sebastian 1225 Main Street Sebastian, FL 32958 Dear Joel: As discussed, in response to your initial requests (attached), the City and County have pursued consideration of the feasibility of County acquisition of the Sebastian water and wastewater utility system. Enclosed, as requested, is a copy of the proposed acquisition agreement. If anything additional is needed at this time, please contact me. Sincerely, mes E. Chandler County Administrator on JEC/mg cc: Terry Pinto ON Charles Vitunac Joe Baird on M so ON 6.4 City of Sebastian .� 1225 MAIN STREET a SEBASTIAN, FLORIDA 32958 TELEPHONE (407) 589-5330 a FAX (407) 589-5570 MEMORANDUM DATE: April 25, 1995 M TO: Arthur L. Firtion, Mayor & Sebastian City Council FROM: Joel L. Koford, City Manager 1 SUBJECT: Proposed Water & Sewer Franchise, Purchase & Sale Contract M The attached document reflects the final draft relative to the possible purchase of the _ Sebastian Utility System by Indian River County. The proposed terms and conditions are rather straightforward and if the City Council is interested in moving forward, we need to hear from our City Attorney and our Municipal Bond Counsel. Once this has �* been accomplished, we can then proceed with a public hearing as required by FS 180.301. on /jmt Attachment an cc: Clifton McClelland, City Attorney Richard B. Votapka, City Engineer ■, 6.5 "THE IMPACTS OF THE PURCHASE OR SALE ON UTILITY CUSTOMERS, BOTH POSITIVE AND NEGATIVE" The major positive impacts of the proposed Agreement for the sale of the Sebastian Water and Wastewater Utility System by the City of Sebastian to Indian River County are summarized as follows: 1) The purchase will provide a uniform utility service fee structure for City of Sebastian and Indian River County Utility customers. 2) Economy of scale will enable the County system to maintain a lower utility rate structure. 3) The County will assume the municipal bond indebtedness, thus releasing the •o current pledge of the City's one-half cent ('/z0) sales tax to the Utility Debt service. 4) The County will assume the task of operations and maintenance of the City Utility System. 5) Because of the common utility customer rate, the operation, maintenance and expansion of the customer service base provides a substantial financial .. advantage to the City utility customers, particularly during periods of financing. 6) Under the proposed County ownership, the City customer's water and wastewater monthly fees and charges for service will be lower than the current City fees and charges. 7) Future Capital Improvements required for the continued efficient operation of •. the City of Sebastian Water and Wastewater System can be more economically financed by the County. w 8) The County has extensive experience in the operation and management of water and wastewater systems and has the sufficient employee's to operate and manage the City system. 7.0 an The major negative impacts associated with the proposed utility sale are as follows: 1) The County will be the single authority for decisions relative to Capital costs. 2) The County will be responsible for resolving customer complaints rather than the City of Sebastian. 3) Management policies that would be more beneficial to the City than the County will be made by the County Utility Department. 4) The City customer will become a member of a larger organization and personalized responses to questions will normally not be exclusively formatted �• for the City customers. an OR 7.1 "ANY ADDITIONAL INVESTMENT REQUIRED AND THE ABILITY AND WILLINGNESS OF THE PURCHASER TO MAKE THAT INVESTMENT, WHETHER THE PURCHASE IS THE MUNICIPALITY OR THE ENTITY PURCHASING THE UTILITY FROM THE MUNICIPALITY" do The County's preliminary estimates for additional initial investment required to connect the City system to the County system is $1,169,660. This amount will be requested at the time the County holds its public hearing for approval of the purchase of the system. Subject to this approval, the County has the ability and willingness to make the investment required. 0 M dw M 8.0 go M "THE ALTERNATIVES TO THE PURCHASE OR SALE AND THE POTENTIAL am IMPACT ON UTILITY CUSTOMERS IF THE PURCHASE OR SALE IS NOT MADE" M The alternative to the sale and the impact on utility customers effects Sebastian customers .. only. The requirement for Capital costs and improvements necessary to service the remainder of the "Highlands" area indicates an increase in the current (adjusted 7/1/95) rate structure for City customers. The required capital necessary to finance construction over the current ten (10) year planning period (1994-2004) are expressed in page 14.0. do SEE PAGE 14.0 DEBT SERVICE PRO -FORMA so If the City continues to operate the Water and Wastewater Utility System and the City continues to rely upon the requirements outlined within the Utility Masterplan, the rates must increase in order to meet the debt service requirements of the future municipal bond issues. so M M 9.0 we "THE ABILITY OF THE PURCHASER TO PROVIDE AND MAINTAIN HIGH- QUALITY AND COST EFFECTIVE UTILITY SERVICE, WHETHER THE PURCHASER IS THE MUNICIPALITY OR THE ENTITY PURCHASING THE UTILITY FROM THE MUNICIPALITY" The County has demonstrated by its operation and maintenance of its current system, which services approximately 26,000 water and sewer customers, its ability to provide and maintain • high-quality and cost-effective utility service. 0 M 40 M an M so • 10.0 Eft "STATEMENT SHOWING THAT THE SALE IS IN THE PUBLIC INTEREST, INCLUDING A BRIEF SUNIIvIARY OF THE PURCHASER'S EXPERIENCE IN WATER, SEWER, OR WASTEWATER REUSE UTILITY OPERATION AND FINANCIAL ABILITY TO PROVIDE THE SERVICE." MR Based upon the foregoing, the purchase of the Sebastian Water and Wastewater Utility System by the Indian River County is in the public interest and the Indian River County • Utilities has the experience and the financial ability to provide service to the customers of Sebastian. am am M 11.0 SEBASTIAN WATER ASSESSMENT SERVICE AREAS PHASES I, II & III -INDIAN RIVER COUNTY DEPARTMENT OF UTILITY SERVICES - 1840 25TH STREET VERO BEACH, FL. 12.0 INTERLOCAL AGREEMENT PROVIDING FOR THE TRANSFER AND ASSUMPTION OF THE CITY OF SEBASTIAN WATER AND WASTEWATER SYSTEM By and Between CITY OF SEBASTIAN, FLORIDA and INDIAN RIVER COUNTY, FLORIDA ADOPTED JULY , 1995 13.0 an • TABLE OF CONTENTS • PAGE • ARTICLE I • DEFINITIONS AND CONSTRUCTION SECTION 1.01. DEFINITIONS . . . . . . . . . . . . . . . . 2 SECTION 1.02. CONSTRUCTION AND INTERPRETATION. 3 • SECTION 1.03. INCORPORATION . . . . . . . . . . . . . . . 4 SECTION 1.04. SECTION HEADINGS . . . . . . . . . . . . . . 4 ARTICLE II REPRESENTATIONS SECTION 2.01. REPRESENTATIONS OF THE COUNTY. . . . . . . 5 SECTION 2.02. REPRESENTATIONS OF THE CITY. . . . . . . . 7 • ARTICLE III .. PURCHASE, SALE, TRANSFER AND ASSUMPTION OF SEBASTIAN UTILITY SYSTEM SECTION 3.01. PURCHASE, SALE, TRANSFER AND ASSUMPTION COVENANT. . . . . . . . . . . .9 SECTION 3.02. SEBASTIAN UTILITY SYSTEM. . . . . . . . . .9 SECTION 3.03. CONSIDERATION . . . . . . . . . . . . . . 11 ARTICLE IV CONDITIONS PRECEDENT TO CLOSING SECTION 4.01. AMENDMENT OF BOND RESOLUTION. . . . . . . 12 SECTION 4.02. COUNTY RESOLUTION ASSUMING SYSTEM. . . . 12 SECTION 4.03. BOND INSURER APPROVAL. . . . . . 12 • SECTION 4.04. . . . VALIDATION . . . . . . . . . . . . . . . . . 13 SECTION 4.05. BOND COUNSEL OPINIONS. . . . . . . . . . 13 SECTION 4.06. ORDINANCE CONSENTING TO ASSESSMENT WITHIN THE CITY . . . . . . . . . . . . . 14 • ARTICLE V CLOSING PROCEDURES AND ASSOCIATED MATTERS SECTION 5.01. CLOSING DATE AND PLACE. . . . . . 15 • SECTION 5.02. DOCUMENTS FOR THE CLOSING. . . . . . . . 15 SECTION 5.03. RECORDING FEES AND DOCUMENTARY TAXES. . . 16 SECTION 5.04. TRANSFER OF FUND BALANCES. . . . . . . . 16 SECTION 5.05. RIGHT TO ENTER . . . . . . . . . . . . . . 17 SECTION 5.06. EMPLOYMENT PREFERENCE. . . . . . . . . . 17 • i • dn OR M c, SECTION 5.07. CONDUCT BETWEEN EXECUTION AND CLOSING. 17 SECTION 5.08. RISK OF LOSS . . . . . . . . . . . . . . . 18 ARTICLE VI OPERATION, MAINTENANCE AND EXPANSION OF THE SEBASTIAN UTILITY SYSTEM SECTION 6.01 .. SECTION 6.02 SECTION 6.03 SECTION 6.04 SECTION 6.05 SECTION 6.06 SECTION 6.07 SECTION 6.08 SECTION 6.09 M SECTION 7.01. SECTION 7.02. SECTION 7.03. .M SECTION 7.04. SECTION 7.05. SECTION 7.06. SECTION 7.07. SECTION 7.08. APPENDICES: APPENDIX A APPENDIX B APPENDIX C APPENDIX D APPENDIX E APPENDIX F APPENDIX G APPENDIX H M COVENANTS EFFECTIVE UPON CLOSING. . . . . 18 ENFORCEMENT OF BOND RESOLUTION. . . . . . 19 RATES, FEES OR OTHER CHARGES. . . . . . . 19 PUBLIC SERVICE T.AX. . . . . . . . . . . . 19 LICENSE TO USE CITY RIGHTS-OF-WAY. . . . 20 OPERATION AND MAINTENANCE. . . . . . . . 21 NO COMPETING SYSTEM. . . . . . . . . . . 21 IMPOSITION OF SPECIAL ASSESSMENTS. 22 CONCURRENCY; SYSTEM EXPANSION OBJECTIVES . . . . . . . . . . . . . . . . 24 ARTICLE VII GENERAL PROVISIONS TIME IS OF THE ESSENCE. . . . . . . . . . 26 APPLICABLE LAW; JURISDICTION AND VENUE. . 26 FAILURE OF PERFORMANCE. . . . . . . . . . 26 NOTICE . . . . . . . . . . . . . . . . . . 27 PROFESSIONAL FEES; COSTS. . . . . . . . . 28 ASSIGNMENT . . . . . . . . . . . . . . . . 28 AMENDMENTS AND WAIVERS. . . . . . . . . . 28 ENTIRE AGREEMENT; RECORDING. . . . . . . 29 Form of Amendment to Bond Resolution Form of County Resolution Assuming System Form of Consent of Bond Insurer Form of County Bond Counsel Opinion Form of Ordinance Consenting to Special Assessments Form of Closing Documents Future Incorporated Area Service Objectives Service Agreements ii INTERLOCAL AGREEMENT PROVIDING FOR THE TRANSFER AND ASSUMPTION OF THE .� CITY OF SEBASTIAN WATER AND WASTEWATER SYSTEM M THIS INTERLOCAL AGREEMENT, is made and entered into as of this day of July, 1995, by and between Indian River County, Florida, a political subdivision of the State of Florida (the "County"), and the City of Sebastian, Florida, a municipal corporation and body politic existing under the laws of the State of Florida (the "City"). W I T N E S E T H: WHEREAS, the City owns and operates a potable water supply, treatment, and distribution system and a wastewater collection, transmission, treatment, disposal and reuse system which provides services within and around its incorporated area; and WHEREAS, the County owns and operates a potable water supply, treatment, and distribution system and wastewater collection, transmission, treatment, disposal and reuse system, both of which are larger than the utility systems owned and operated by the City; and =I WHEREAS, the County has the power and authority to provide potable water and wastewater infrastructure and service within " Indian River County and upon the consent of the City within the M W M incorporated areas of the City of Sebastian; and WHEREAS, the County and the Citv have held a public hearing on the proposed purchase, sale, transfer and assumption of the water and wastewater utility system owned by the City in Indian River 1 of 30 so County, Florida, and made a determination that such a transfer is in the public interest; and WHEREAS, the County and the City, in determining if such a purchase, sale, transfer and assumption is in the public interest have considered, at a minimum, all of the factors referenced in ^ Sections 125.3401 and 180.301, Florida Statutes; and ^ WHEREAS, the County desires to acquire all of the assets which are used by the City in providing services through the City's ^ utility system in Indian River County, Florida, and the City desires to transfer those assets to the County; NOW, THEREFORE, in consideration of the mutual promises, covenants, representations and agreements contained herein, together with $10 and other good and valuable consideration ^ exchanged between the parties, the parties to this Interlocal Agreement do undertake, promise and agree for themselves, their permitted successors and assigns as follows: ARTICLE I M DEFINITIONS AND CONSTRUCTION SECTION 1.01. DEFINITIONS. As used in this Interlocal Agreement, the following terms shall have the meanings as defined unless the context requires otherwise: "Agreement'# or "Interlocal Agreement" means this Interlocal Agreement Providing for the Transfer and Assumption of the City of Sebastian Water and Wastewater System, including any amendments and supplements hereto executed and delivered in accordance with the terms hereof. 2 of 30 M "Board" means the Board of County Commissioners of Indian • River County, Florida. "Bond Resolution" means Resolution No. R-93-58 as adopted by '■ the City and as amended from time to time. "Bonds" means the Utilities System Revenue Bonds, Series 1993 issued by the City. • "Council#$ means the City Council of the City of Sebastian, Florida. .. "County" means Indian River County, Florida. "City" means the City of Sebastian, Florida. "City Obligations" means the obligations of the City imposed by the Bond Resolution, including, but not limited to, the payment • of debt service on the Bonds and the observance of the covenants of • the City undertaken as part of the Bond Resolution. "Riverfront Projectff means the Indian River Drive Water • Distribution Project currently being constructed by the City. 19Sebastian Utility Systeme means the potable water supply, • treatment, storage, and distribution system and wastewater ., collection, transmission, treatment, disposal and reuse system owned by the City and providing services within and around its • incorporated area in Indian River County, Florida, and as described and referenced in Section 3.02(A) hereof. SECTION 1.02. CONSTRUCTION AND INTERPRETATION. (A) Words that indicate a singular number shall include the plural in each case and vice versa, and words that import a person shall include firms and corporations. .0 • 3 of 30 M (B) The terms "herein," "hereunder," "hereby," "hereof," and any similar terms, shall refer to this Agreement; the term "heretofore" shall mean before the date of execution of this Agreement; and the term "hereafter" shall mean on or after the initial date of execution of this Agreement. (C) Words that reference only one gender shall include all genders. (D) This Agreement shall be construed as resulting from joint negotiation and authorship. No part of this Agreement shall be construed as the product of any one of the parties hereto. SECTION 1.03. INCORPORATION. The appendices hereto and each of the documents referred to herein are incorporated and made a part hereof in their entirety by reference. ., SECTION 1.04. SECTION HEADINGS. Any headings preceding the texts of the several Articles, Sections or Appendices in this Agreement and any table of contents or marginal notes appended to copies hereof, shall be solely for the convenience of reference and shall neither constitute a part of this Agreement nor affect its meaning, construction or effect. M M 4 of 30 M ARTICLE II REPRESENTATIONS _ SECTION 2.01. REPRESENTATIONS OF THE COUNTY. The County makes the following representations, which shall survive any closing hereunder for a period of two years from the date of closing. (A) The County is duly organized and validly existing as a political subdivision of the State of Florida. .. (B) The County has full power and authority to enter into the transactions contemplated by this Agreement. (C) The County has fulfilled and complied with the provisions of Section 125.3401, Florida Statutes, relative to the purchase and sale of a water, sewer or wastewater reuse utility by a county, or will do so prior to closing. (D) To the best of its knowledge and belief after due inquiry, the County is not in default under any provisions of the laws of the State of Florida material to the performance of its obligations under this Agreement. The Board has duly authorized the execution and delivery of this Agreement and assuming the due authorization, execution and delivery by other parties hereto, this Agreement constitutes a valid and legally binding obligation of the County, enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by any applicable bankruptcy, insolvency, reorganization or other similar laws affecting creditors' rights generally, or by the exercise of 5 of 30 • judicial discretion in accordance with general principles of equity. (E) To the best of the County's knowledge and belief after • due inquiry, the authorization, execution and delivery of this Agreement and the compliance by the County with the provisions • hereof will not conflict with or constitute a material breach of, _ or default under, any existing law, court or administrative regulation, decree, order, or any provision of the Constitution, or • the laws of the State of Florida relating to the County or its affairs, or any ordinance, resolution, agreement, lease, or other • instrument to which the County is subject or by which it is bound. (F) There is no action, suit, investigation, or proceeding pending or, to the County's knowledge and belief, threatened • against or affecting the County, at law or in equity or before any federal, state, municipal, or other governmental department, commission, board bureau agency or instrumentality, wherein any decision, ruling or finding would adversely affect the transactions • contemplated hereby or which in any way would adversely affect the validity of this Agreement or any other agreement or instrument to which the County is a party and which is used or contemplated for • use in the consummation of the transactions contemplated hereby. (G) The County has not dealt with any broker, salesman or finder in connection with the transactions contemplated herein and • no sales commissions of finder's fees are due or payable as a result hereof. • c • 6 of 30 M SECTION 2.02. REPRESENTATIONS OF THE CITY. The City makes the following representations, which shall survive any closing hereunder for a period of two years from the date of closing. (A) The City is duly organized and validly existing as a municipal corporation and body politic existing under the laws of the State of Florida. (B) The City has full power and authority to enter into the transactions contemplated by this Agreement. (C) The City has fulfilled and complied with the provisions of Section 180.301, Florida Statutes, relative to the purchase and sale of a water, sewer or wastewater reuse utility by a city, or will do so prior to closing. (D) To the best of its knowledge and belief after due �. inquiry, the City is not in default under any provisions of the laws of the State of Florida material to the performance of its obligations under this Agreement. The Council has duly authorized the execution and delivery of this Agreement and assuming the due authorization, execution and delivery by other parties hereto, this Agreement constitutes a valid and legally binding obligation of the City, enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by any applicable bankruptcy, insolvency, reorganization or other similar laws affecting creditors' rights generally, or by the exercise of �. judicial discretion in accordance with general principles of equity. 7 of 30 (E) To the best of the City's knowledge and belief after due inquiry, the authorization, execution and delivery of this Agreement and the compliance by the City with the provisions hereof will not conflict with or constitute a material breach of, or default under, any existing law, court or administrative regulation, decree, order, or any provision of the Constitution, or _ the laws of the State of Florida relating to the City or its affairs, or any ordinance, resolution, agreement, lease, or other instrument to which the City is subject or by which it is bound. (F) There is no action, suit, investigation, or proceeding pending or, to the City's knowledge and belief, threatened against _ or affecting the City, at law or in equity or before any federal, state, municipal, or other governmental department, commission, board, bureau, agency or instrumentality, wherein any decision, ruling or finding would adversely affect the transactions contemplated hereby or which in any way would adversely affect the validity of this Agreement or any other agreement or instrument to which the City is a party and which is used or contemplated for use in the consummation of the transactions contemplated hereby. (G) The City has not dealt with any broker, salesman or finder in connection with the transactions contemplated herein and no sales commissions of finder's fees are due or payable as a result hereof. M M 8 of 30 ARTICLE III PURCHASE, SALE, TRANSFER AND ASSUMPTION OF SEBASTIAN IITILITY SYSTEM SECTION 3.01. PURCHASE, SALE, TRANSFER AND ASSUMPTION COVENANT. At closing, the County shall purchase and assume and the .. City shall sell, convey and transfer the Sebastian Utility System to the County upon the terms and subject to the conditions set forth in this Agreement. SECTION 3.02. SEBASTIAN IITILITY SYSTEM. (A) The Sebastian Utility System, shall include those assets, .. business properties, and rights and obligations both tangible and intangible, that the City acquired from the County in 1992, from General Development Corporation in 1993, or acquired otherwise which it now owns and uses exclusively in conjunction with the operation of the City's potable water supply, treatment, and .. distribution system, and a wastewater collection, transmission, treatment, and disposal and reuse system, or any such interest it hereafter acquires, relating thereto, including the following: (1) All real property and interests, whether recorded in the public records or not, in real property owned and controlled by the City for water and wastewater purposes. (2) All water and wastewater, including reuse and reclaimed water, treatment plants, wells, collection, transmission, distribution, pumping, effluent and disposal facilities of every kind and description whatsoever including without limitation, all trade fixtures, leasehold improvements, lift stations, pumps, generators, controls, tanks, distribution, collection or 9 of 30 transmission pipes or facilities, valves, meters, service connections, and all other physical facilities and property installations used for the operation of the City's water or .. wastewater system, together with an assignment of any existing and assignable third party warranties that relate to completed or in progress construction. (3) The ownership of the Riverfront Project, however, the City shall retain the right to receive the proceeds from the special assessment which it has levied for the Riverfront Project, but the City shall pay the County from the proceeds of such special assessment for the construction of the Riverfront Project as set out in the Agreement dated the 11th day of January, 1995 between the City and the County. (4) All equipment, vehicles, tools, parts, laboratory equipment, and other personal property owned and used by the City exclusively in connection with the operation of the City' water or wastewater utility system. (5) All water or wastewater easements in favor of the City, or its predecessors in interest, used in conjunction with the City's water or wastewater utility system. (6) All current customer records and supplier lists, as- built surveys and water and wastewater plans, plats, engineering and other drawings, designs, blueprints, plans and specifications, .. maintenance and operating manuals, engineering reports, calculations, computer models and studies, accounting, budget and business records and all other information controlled by or in the 10 of 30 A possession of the City that relates to the description and .w operation of the City's water or wastewater utility system, inclusive of all pertinent computer records and the lawful use of all computer software which is or was used in the operation of such utility system for billing or customer record keeping purposes. The lawful use of any licensed software or proprietary software .. developed for the City shall be limited to the recovery and transfer of data to County computers. (7) All necessary regulatory approvals subject to all conditions, limitations or restrictions contained therein; all existing permits and other governmental authorizations and approvals of any kind necessary to construct, operate, expand, and maintain the City's water or wastewater utility system according to all governmental requirements. (B) The Sebastian Utility System shall be conveyed by the City to the County subject to the Bonds and the City Obligations and the provisions and requirements of this Interlocal Agreement, but otherwise free and clear of all liens or encumbrances. SECTION 3.03. CONSIDERATION. Subject only to adjustments and prorations as provided herein, the total consideration for the purchase, sale, transfer and assumption of the Sebastian Utility System shall be Ten Dollars ($10.00) and: (A) The County's assumption of the City Obligations, including the obligation to timely repay, or in its sole discretion and at its sole expense defease, the Bonds and hold harmless and indemnify the City for any loss or damage resulting from the M M 11 of 30 County's failure to do so. The County specifically assumes the ., City's obligations listed in Appendix "H." (B) The covenants and provisions of this Agreement, including those in Article VI hereof, which are to become effective only upon the purchase, sale, transfer and assumption of the Sebastian Utility System as contemplated herein. ARTICLE IV CONDITIONS PRECEDENT TO CLOSING SECTION 4.01. AMENDMENT OF BOND RESOLUTION. Prior to closing the City shall amend the Bond Resolution pursuant to Section 8.03 thereof, to (A) authorize the purchase, sale, and transfer of the Sebastian Utility System to the County and the assumption by the County of all indebtedness and other obligations of the City under the Bond Resolution and the Bonds and (B) release the lien of the City's half -cent sales tax currently pledged to secure the Bonds. Such amendments shall be in substantially the form attached hereto _ as Appendix A. SECTION 4.02. COUNTY RESOLUTION ASSUMING SYSTEM. Prior to ■+ closing the County shall adopt a resolution agreeing to accept and acquire the Sebastian Utility System and assume the Bonds and the City Obligations on a parity with existing County water and _ wastewater utility system debt in substantially the form attached hereto as Appendix B. .. SECTION 4.03. BOND INSURER APPROVAL. Prior to closing the County shall obtain the written consent of Municipal Bond Investors Assurance Corporation, or any successor thereto, as insurer of the 12 of 30 �1 on Bonds, to the amendment to the Bond Resolution referenced in .. Section 4.01 hereof. Such consent shall be in substantially the form attached hereto as Appendix C. SECTION 4.04. INDEMNIFICATION. The County shall indemnify and hold harmless the City from any claims, damages or judgments, including attorney fees and costs, arising from the County's assumption of the City Obligations. In the event the County fails to fulfill the City obligations, the County shall defease the Bonds or take any other measures, including the payment of any claimants or judgment holders necessary to fulfill the County's covenants and responsibilities arising from this Agreement. The County shall also defease the Bonds if the amendment to the Bond Resolution required in Section 4.01 hereof does not release the City's lien of the half cent sales tax currently pledged to secure the Bonds. The County specifically agrees and guarantees that it shall fund this indemnification and save harmless covenant from the County's water and wastewater utility fund. The County will not indemnify and the City will hold the County harmless from any and all liability arising out of the case styled Citrus Utilities. Inc. v. General Development Utilities. Inc. and City of Sebastian; Case Number 94- 0202 -CA -03 filed in the Circuit Court of Indian River County, Florida. SECTION 4.05. BOND COUNSEL OPINIONS. Prior to closing the M City shall receive the legal opinion of Bryant, Miller and Olive, M M M P.A., bond counsel to the County, addressed to the City, to the effect that, (A) the amendment to the Bond Resolution required in 13 of 30 Section 4. 01 hereof complies with the provisions of Article VIII of the Bond Resolution; and (B) based on such amendment to the Bond Resolution, the lien of the Bond Resolution on the City's half -cent sales tax has been released. Such opinion shall be in substantially the form attached hereto as Appendix D. SECTION 4.06. ORDINANCE CONSENTING TO ASSESSMENT WITHIN THE CITY. Prior to closing the City shall adopt an ordinance consenting to the imposition of special assessments by the County relative to the provision of water or wastewater services, facilities or programs. Such ordinance shall only become effective upon closing on the transfer of the Sebastian Utility System as _ contemplated herein and shall be in substantially the form attached hereto as Appendix E. The City on the written request of the �+ County shall adopt an ordinance consenting to the establishment of a municipal service benefit unit or the imposition of special assessments by the County within the City for the express purpose _ of the County providing water and wastewater utility service facilities. M 14 of 30 ARTICLE V CLOSING PROCEDURES AND ASSOCIATED MATTERS SECTION 5.01. CLOSING DATE AND PLACE. (A) It is anticipated that the purchase, sale, transfer and assumption of the Sebastian Utility System contemplated by this Agreement will be closed on or before August 29, 1995. The time ., for closing may be extended by either party no later than October 29, 1995. The closing shall be held at the offices of the County, or other offices mutually agreed upon by the parties. SECTION 5.02. DOCUMENTS FOR THE CLOSING. (A) The City shall furnish at closing a certificate reaffirming the City's representations and warranties hereunder, the deed, and the bill of sale, all in substantially the form respectively attached hereto as Appendix F. (B) The County shall furnish at closing the closing statement, a certificate reaffirming the County's representations and warranties hereunder in substantially the form attached hereto M as Appendix F. (C) From time to time after closing, each party hereto shall, upon request of the other, take reasonable actions to execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, all such further acts, deeds, assignments, transfers or other documentation for (1) confirming or correcting title in the name of the County or perfecting undisputed possession by the County of the Sebastian Utility System, or (2) otherwise fulfilling the obligations of the parties hereunder. 15 of 30 M SECTION 5.03. RECORDING FEES AND DOCUMENTARY TABES. (A) Recording fees to record the deed and any other instruments necessary to transfer title of the Sebastian Utility System to the County shall be paid by the County. _ (B) The Sebastian Utility System is being transferred and conveyed to the County by the City for public purposes and therefore this transaction is immune from documentary stamp tax. However, in the event any documentary tax is applicable, the County shall pay the cost of the documentary stamps to be affixed to any _ deed or other instruments of conveyance as the benefits accruing to the County in the public purpose of this transfer warrant such expenditure. 16 of 30 SECTION 5.04. TRANSFER OF FUND BALANCES. At closing the City shall transfer to the County the account balances from the following Sebastian Utility System related accounts: Reserve _ Subaccount, Utility System R & R Account, Sewer Impact Fee Account, .. Water Impact Fee Account, Customer Deposits, and Project Account. The balance in the accounts as of June 30, 1995 was as follows: Reserve Subaccount $ 353,847 Utility System R & R Account 10,000 Sewer Impact Fee Account 10,801 Water Impact Fee Account 173,997 .. Customer Deposits 74,525 Project Account $ 454,532 TOTAL: $1,077,702 16 of 30 M However, the parties recognize the amounts in the accounts may vary from the above described amounts on the date of closing as the City is operating an on-going business. The City will transfer to the County the account balances in the accounts on the date of the closing. SECTION 5.05. RIGHT TO ENTER. Prior to closing, the County shall have the right, at any reasonable time with prior notice to the City, to enter upon the City's property to inspect the Sebastian Utility System, to familiarize itself with day-to-day _ operations, to review the operational practices of the City, and to ensure compliance with any and all federal and state regulatory requirements. SECTION 5.06. EMPLOYMENT PREFERENCE. To the extent that the County may lawfully do so and to the extent that the County has any position available, the County shall grant a preference in hiring to any non -management employee of the City currently employed in �. the operation of the Sebastian Utility System. However, any such applicants must meet the County's employment qualification and pre-employment screening criteria. All employment resulting from this Section shall be at will. SECTION 5.07. CONDUCT BETWEEN EXECUTION AND CLOSING. �. (A) Upon the execution of this Agreement, the City shall continue to provide water and wastewater treatment to its current customers in the ordinary and usual manner. (B) The City shall prudently maintain the Sebastian Utility System to ensure its proper operation through closing. 17 of 30 M (C) From and after the date of the execution of this Agreement, the City shall not, without prior written consent of the County, dispose of or encumber any part or portion of the Sebastian Utility System, except any non -material transactions that occur in the ordinary course of the City's business. The City shall fully apprise the County of all such transactions at closing. (D) From and after the date of the execution of this Agreement, the City shall not, without prior written consent of the County, (1) enter into or modify any effluent reuse or disposal _ agreements affecting the Sebastian Utility System or (2) enter into or modify any developer, water or wastewater service agreement affecting the Sebastian Utility System. SECTION 5.08. RISK OF LOSS. At all times prior to and through the day of closing, the City shall maintain adequate fire _ and extended insurance coverage for the cost of any repairs to the Sebastian Utility System that may be required by casualty damage. .. The risk of loss during the said period of time shall fall upon the City. The risk of loss shall pass to the County at closing. ARTICLE VI r_, M OPERATION, MAINTENANCE AND EXPANSION OF THE SEBASTIAN UTILITY SYSTEM SECTION 6.01. COVENANTS EFFECTIVE UPON CLOSING. Only upon the purchase, sale, transfer and assumption of the Sebastian Utility System as contemplated herein shall the covenants and provisions contained in this Article become effective. 18 of 30 SECTION 6.02. ENFORCEMENT OF BOND RESOLUTION. (A) The City may on its own behalf, or on behalf of the holders of any Bonds assumed by the County, enforce the County's observance of the City Obligations by way of equitable relief or an _ action in mandamus. (B) The County and the City hereby irrevocably agree that �. this Agreement shall be deemed to have been made for the benefit of, and shall be a contract with, the holders from time to time of the Bonds, and that all the provisions of this Agreement shall be _ enforceable in any court of competent jurisdiction by any holder or holders of the Bonds. SECTION 6.03. RATES, FEES OR OTHER CHARGES. (A) To the extent permitted by law, the uniform county .. utility policies shall apply within the City and there shall be no discrimination between City and County residents. All rates, fees, and charges for water and sewer service shall be established exclusively by the County. At no time shall rates, fees, and charges, including the rate equalization charge, for any class or user or property owner within the City exceed the total charged by the County including the County's franchise fee for a comparable class of users or property owners within the unincorporated areas of the County. SECTION 6.04. PUBLIC SERVICE TAB. (A) The City at all times shall have the power and authority to impose and levy any public service tax now or hereafter authorized on the purchase of water and, to the extent permitted 19 of 30 M by law, the County shall collect such public service tax at the time of payment for such service. Accordingly, the County shall maintain its water customer records in such a manner as to easily distinguish between service provided in incorporated and unincorporated areas. (B) The County shall not impose a tax on the purchase of water or wastewater services within the City. SECTION 6.05. LICENSE TO USE CITY RIGHTS -OF -RAY. (A) The City hereby grants and conveys to the County a license to use all City rights-of-way now or hereafter acquired by the City for the purpose of providing water and wastewater .. services. However, such a grant shall require the County to relocate any water or wastewater utility facilities in the event that such facilities interfere or are inconsistent with the use of the City rights-of-way for transportation or drainage purposes. (B) The City, on application from the County, shall grant the County a written permit to locate water and sewer lines within the City right-of-way. Upon the City granting such written permit to �. the County, notwithstanding the above language, if the City requires the County to remove its lines within a permitted right- of-way within five (5) years after the issuance of the permit, the _ City shall pay for the cost of the relocation of such lines. (C) The license granted and conveyed to the County hereunder, .. shall include by way of example and not limitation, the authority and obligation to construct, maintain, repair, replace, operate, remove and relocate water and wastewater utility facilities. In 20 of 30 w doing so the County shall cause as little disruption to the public w as possible, shall attempt to prevent the creation of obstructions or conditions dangerous to the public, and shall promptly repair any damage to or disruption of public or private property. SECTION 6.06. OPERATION AND MAINTENANCE. The County shall have exclusive possession of and assume all responsibility for _ operation and maintenance of the Sebastian Utility System. The County shall incorporate and integrate the Sebastian Utility System into the County's existing water and wastewater utility system and shall construct, expand, maintain, repair, operate and administer the resulting combined water and wastewater utility system in an _ orderly and efficient manner, and collect and account for all revenues derived therefrom. The County shall have an affirmative w duty, and is hereby authorized by the City, to provide, in a manner consistent with this Agreement, water and wastewater service within w the incorporated area of the City under County ordinances, resolutions, regulations, and policies regardless of whether a lot w or parcel of land connected with or provided service by the County's water and wastewater system is located in the incorporated or unincorporated area. SECTION 6.07. NO COMPETING SYSTEM. To the full extent permitted by law, neither the City nor the County will grant or s cause, consent to, or allow the granting of any franchise, w certificate of authorization, or permit to any person, firm, corporation, or public body, agency or instrumentality whatsoever 21 of 30 (other than the County) for the furnishing of water or wastewater services to or within the incorporated area of the City. SECTION 6.08. IMPOSITION OF SPECIAL ASSESSMENTS. (A) Provided the County has, or has identified within its most recently adopted water or wastewater capital improvement plan, adequate treatment capacity, the City shall have the power and authority to finance, construct, acquire or extend water or wastewater transmission, distribution or collection facilities and improvements, cause the connection of said improvements to the County treatment facilities, and impose special assessments therefore on any benefitted parcels lying within the incorporated _ area of the City or in any adjacent unincorporated area. (B) The County shall also have, and the City hereby consents to, the power and authority to finance, construct, acquire or extend water or wastewater transmission, distribution or collection facilities and improvements and impose special assessments _ therefore upon benefitted parcels located within the incorporated area of the City. However, the County shall first notify the City ., of its intent to embark upon any special assessment project within an incorporated area of the City and provide a period of 60 days for the City to opt to finance, construct, acquire or extend the _ proposed facilities and improvements and impose special assessments upon benefitted parcels. Such notice from the County shall include a description of the project, plans and specifications, an assessment plat, estimated total cost, a proposed assessment roll, the proposed method and estimated costs of financing, and the 22 of 30 proposed apportionment method showing the proposed assessment for ., each benefitted parcel. (C) The County may request in writing that the City impose a M special assessment for water or wastewater improvements under the W provisions of Chapter 170, Florida Statutes. Such request from the County shall include a description of the project, plans and M specifications, an assessment plat, estimated total cost, a proposed assessment roll, the proposed method and estimated costs W of financing, and the proposed apportionment method showing the M proposed assessment for each benefitted parcel. After receiving such information, the City shall conduct a hearing under Section M 170.08 F.S. as to the propriety and advisability of making the improvements and funding them with special assessments. Following M the testimony at the hearing, the Council shall make a final decision on whether to levy the special assessments. If the Council elects not to levy the special assessments, the County may proceed by law to levy the special assessments. (D) Any construction, acquisition, or extension of water or M wastewater transmission, distribution, or collection facilities or improvements and any connections to the County water or wastewater system shall comply with all uniform construction standards and connection requirements adopted by the County from time to time. (E) The City will own any water or wastewater improvements ON which are constructed with funds for which the City imposes special assessments. After the improvements are constructed, the City may M transfer such improvements to the County and the County shall an 00 23 of 30 accept the improvements as part of the County Utility System. While the improvements are in the ownership of the City, the County shall operate, maintain, repair, and replace, if necessary, such improvements as if the improvements were part of the County's utility system. The County's cost to operate, maintain, repair and replace such improvements shall be included in the County's usual utility charge to its customers. SECTION 6.09. CONCURRENCY; SYSTEM EXPANSION OBJECTIVES. (A) The construction, expansion or acquisition of any water or wastewater utility facilities by the County, or major alterations which affect the quantity or quality of the level of ,., service provided or available within the incorporated areas of the City shall be consistent with the applicable local government comprehensive plans adopted pursuant to Chapter 163, Part II, Florida Statutes; provided, however, no local government comprehensive plan shall require the County or the City to construct, expand, or perform a major alteration of any public facility which will result in the impairment of covenants and agreements relating to any bonds or other obligations issued by either the County or the City, or assumed by the County. (B) The County and the City hereby establish common goals and .. objectives to extend and expand the resulting water and wastewater system to be operated by the County both inside and outside of the incorporated area of the City: (1) Within 18 months of the transfer of the Sebastian Utility System to the County as contemplated in this Agreement, to M 24 of 30 furnish water service to all lots or parcels within the area M designated as Phase I on Appendix G hereof. (2) Within 36 months of the transfer of the Sebastian Utility System to the County as contemplated in this Agreement, to furnish water service to all lots or parcels within the area designated as Phase II on Appendix G hereof. M (3) Within 54 months of the transfer of the Sebastian Utility System to the County as contemplated in this Agreement, to at furnish water service to all lots or parcels within the area IM designated as Phase III of Appendix G hereof. (4) To timely cooperate, plan, advance, expand and construct additional water and wastewater treatment facilities to assure such treatment capacity is available concurrent with the M demands of new growth or the expansion or extension of water or wastewater transmission, distribution or collection facilities by either the City or the County. The County will furnish water or wastewater service earlier than the time period established in this Section if a public health ., problem occurs or the demand for such service makes the service M economically feasible. The County will provide wastewater service simultaneously with the installation of public water service in any designated area if the City requests such service in writing, and the County has the •. wastewater treatment capacity available and a financing plan approved by the City and County is developed for providing such service. 25 of 30 ARTICLE VII GENERAL PROVISIONS SECTION 7.01. TIME IS OF THE ESSENCE. Time is of the essence in this Agreement. Time periods specified in this Agreement shall expire at midnight on the date stated unless the parties agree in writing to a different date or time. Any time period provided for ,. herein which ends on Saturday, Sunday or a legal holiday shall extend to 5:00 p.m. on the next business day. SECTION 7.02. APPLICABLE LAA; JURISDICTION AND VENUE. (A) This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. (B) The parties to this Agreement expressly consent to the jurisdiction of and agree to suit in any court of general jurisdiction in the State of Florida, whether state, local or federal, and further agree that venue shall lie in Indian River County, Florida. SECTION 7.03. FAILURE OF PERFORMANCE. (A) A breach of this Agreement shall mean a material failure to comply with any of the provisions of this Agreement. If any party breaches any obligation herein, then, upon receipt of written notice by the non -breaching party, the breaching party shall proceed diligently and in good faith to take all reasonable actions to cure such breach and shall continue to take all such actions until such breach is cured. (B) If either party fails, neglects or refuses to perform this Agreement, the non -breaching party may seek specific 26 of 30 performance without thereby waiving any action for damages resulting from the other party's breach. SECTION 7.04. NOTICE. (A) All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when hand delivered or mailed by registered or certified mail, postage prepaid, to the parties at the following addresses: To the County: .. County Administrator 1840 25th Street Vero Beach, Florida 32960 with a copy to: County Attorney 1840 25th Street Vero Beach, Florida 32960 +, To the City: City Manager 1225 Main Street Sebastian, Florida 32958 with a copy to: City Attorney Potter, McClelland, Marks & Healy, P.A. 700 Babcock Street, Suite 400 Melbourne, Florida 32901 (B) Any written notice given to one person in subsection (A) of this Section shall also be copied and provided to all other persons identified in subsection (A). (C) The parties may, by notice in writing given to the others, designate any future or different addresses to which the subsequent notices, certificates or other communications shall be 27 of 30 M sent. Any notice shall be deemed given on the date such notice is _ delivered by hand or by facsimile transmission or 5 days after the date mailed. SECTION 7.05. PROFESSIONAL FEES; COSTS. (A) Each party shall be responsible for securing its own counsel for representation relative to the negotiation of this Agreement, and all other matters associated with performance, cancellation or closing hereunder; unless otherwise specified herein, and each party shall be responsible for the payment of the fees of its own attorneys, bankers, engineers, accountants, and other professional advisors or consultants in connection therewith. (B) In any litigation arising out of this Agreement, the prevailing party in such litigation shall be entitled to recover .� reasonable attorney's fees and costs. SECTION 7.06. ASSIGNMENT. Neither the City nor the County shall have the power or authority to assign this Agreement or any of their rights, duties or obligations hereunder to a third party. This Agreement is solely for the benefit of the County and the City, and no claim or cause of action shall accrue to or for the benefit of any third party, other than the holders of the Bonds, by reason hereof. SECTION 7.07. AMENDMENTS AND WAIVERS. No amendment, supplement, modification or waiver of this Agreement shall be binding unless executed in writing by all parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision of this 28 of 30 Agreement, whether or not similar, unless otherwise expressly provided. SECTION 7.08. ENTIRE AGREEMENT; RECORDING. (A) This Agreement is the entire agreement between the parties pertaining to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions of the agreements, understandings, negotiations and discussions of the parties, whether oral or written, and there are not warranties, representations or other agreements between the parties in connection with the subject matter hereof, except as specifically set forth herein. (B) Upon execution hereof by all parties, the County and the City shall deliver a fully executed copy of this Agreement, ., together with all appendices hereto, to the Clerk of the Circuit Court for recording pursuant to Section 163.01, Florida Statutes. IN WITNESS WHEREOF, the County and the City have caused this Interlocal Agreement to be duly executed and entered into on the date first above written. BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA (SEAL) By: Chairman ATTEST: JEFFREY K. BARTON, Clerk of the Circuit Court and Ex -Officio Clerk of the Board of County Commissioners of Indian River County, Florida By: Deputy Clerk 29 of 30 (SEAL) ATTEST: KATHRYN M. O'HALLORAN, �+ City Clerk Bv: m Deputy Clerk THE CITY OF SEBASTIAN, FLORIDA By: Mayor 30 of 30 Ll APPENDIX A Amendment to Bond Resolution APPENDIX A RESOLUTION NO. R -95- A RESOLUTION AMENDING RESOLUTION NO. R-93-67 OF THE CITY OF SEBASTIAN, FLORIDA, TO AUTHORIZE THE TRANSFER BY THE CITY OF ITS WATER AND SEWER SYSTEM TO ANOTHER GOVERNMENTAL UNIT, AND BY AMENDING SECTIONS 4.11 AND 5.07 • THEREOF; PROVIDING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Sebastian, Florida (the "Issuer") has by Resolution No. R-93-67 (the "Resolution") authorized the issuance of not to exceed $5,000,000 City of Sebastian, Florida Utilities System Revenue Bonds, Series 1993 (the "Series 1993 Bonds") for the purposes more fully described in the Resolution; and WHEREAS, it is in the best interest of the Issuer and the residents and inhabitants thereof to make certain amendments to the Resolution to permit a transfer of the Issuer's water and sewer system (the "City System") to Indian River County, Florida as permitted by Section 8.03 of the Resolution with the consent of Municipal Bond Investors Assurance Corporation ("MBIA"), the insurer of the Series 1993 Bonds; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SEBASTIAN, FLORIDA: SECTION 1. Section 4.11(A)(1) of the Resolution is hereby supplemented by adding to the end thereof the following new paragraph: Notwithstanding the foregoing, in the event the Issuer transfers the System in whole to another governmental unit in accordance with Section 5.07 hereof and such acquiring governmental unit assumes the obligations of the Issuer under the Series 1993 Bonds, where such governmental unit is operating a water and sewer system into which the system is to be integrated, the independent certified public accountant shall add net revenues of such governmental unit's water and sewer system for the prior three Fiscal Years to Net Revenues for purposes of determining whether the pledge of and lien on the Half -Cent Sales Tax Revenues shall be discharged and released. A-1 M M SECTION 2. The initial paragraph of Section 5.07 of the Resolution is hereby amended to read as follows: do Except as permitted by this Section 5.07 hereof, the Issuer irrevocably covenants, binds and obligates itself not to sell, lease, encumber or in any manner dispose of the System as a whole or any substantial part thereof until all of the Bonds and all interest thereon shall have been paid in full or provision for payment has been made in accordance with the provisions of this Section ,. 5.07 hereof or in accordance with Section 9.01 hereof. The Issuer specifically reserves the right to transfer the ownership and operation of the System as a whole, and all of the Issuer's rights and obligations under this Resolution and the Bonds to another governmental unit then operating a water and sewer system compatible with the System in Indian River County, Florida upon compliance with the following conditions: (a) the governmental unit acquiring the System shall constitute a governmental entity, obligations issued by which are exempt from Federal income taxation under Section 103(a) of the Code, (b) such governmental unit shall agree, in writing, to assume all obligations of the Issuer under this Resolution and the Bonds, �. and (c) the Issuer shall receive the prior written consent of the Insurer to the transfer and the terms thereof and the acknowledgment by the Insurer that the Bond Insurance Policy shall continue to remain in effect for the Bonds after such transfer in accordance with the terms of such Bond Insurance Policy. Upon the consummation of such transfer, the assuming governmental unit shall become the "Issuer" for all purposes hereunder. .. Thereafter, the transferee governmental unit shall be solely responsible for compliance with all of -the terms and provisions hereof, .. including but not limited to the right to issue future series of Additional Bonds on a parity with any Bonds then outstanding. The Issuer shall immediately transfer the various accounts and subaccounts established hereby to the transferee governmental unit. Upon such transfer, and following the release, if any, .. of the pledge of the Issuer's Half -Cent Sales Tax Revenues, the Issuer's sole obligation to the holders of the Bonds shall be to enforce, A-2 L1 A or to assist in the enforcement of, the obligations of the transferee governmental unit under this Resolution assumed as part of such transfer by way of an action in mandamus or otherwise, as permitted by law. SECTION 3. Except as amended by this Resolution, the Resolution shall remain in full force and effect. ., SECTION 4. This Resolution shall take effect immediately upon the filing with the City Clerk the written consent of the Insurer to the adoption of this Resolution, in accordance with Section 8.03 of the Resolution. ADOPTED this day of 1995. Mayor ATTEST: City Clerk Approved as to Form and Content: M ty Attorney W M W M M A-3 at M1 ON ., APPENDIX B County Resolution Assuming System .t .O M GR ow APPENDIX B BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, that: SECTION 1. AUTHORITY FOR THIS RESOLUTION. This Resolution is adopted pursuant to the Constitution of Florida, Section 125.01, Florida Statutes, and other applicable provisions of law and Resolution No. 93-80 of the Board of County Commissioners of Indian River County, Florida (the "Original Resolution"). SECTION 2. DEFINITIONS. Unless the context otherwise requires, the terms defined in this section shall have the meanings specified in this section. Words importing singular number shall include the plural number in each case and vice versa and words importing persons shall include firms and corporations. Except as otherwise provided herein, all defined terms in the Original Resolution shall have the same meanings when used herein. "Acquisition Agreement'f shall mean that certain Interlocal Agreement Providing for the Transfer and Assumption of the City of Sebastian Water and Wastewater System between the City and the County, the form of which is attached hereto as Exhibit A, pursuant to which the County is to acquire the City System from the City. B-1 U-1 RESOLUTION NO. 95- A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA .� PROVIDING FOR THE ACQUISITION FROM THE CITY OF SEBASTIAN, FLORIDA OF ITS WATER AND SEWER SYSTEM; PROVIDING FOR THE ASSUMPTION FROM THE CITY OF SEBASTIAN, FLORIDA OF ALL OF ITS OBLIGATIONS UNDER THE $5,000,000 CITY OF SEBASTIAN, FLORIDA UTILITIES SYSTEM REVENUE BONDS, SERIES 1993; PROVIDING FOR THE PAYMENT OF THE ASSUMED BONDS FROM THE NET REVENUES OF THE COUNTY'S WATER AND SEWER SYSTEM ON A PARITY WITH THE COUNTY'S WATER AND SEWER .. REVENUE BONDS, SERIES 1993A AND SERIES 1993B; PROVIDING FOR THE RIGHTS OF THE HOLDERS OF SUCH ASSUMED BONDS; MAKING CERTAIN OTHER COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH; PROVIDING CERTAIN OTHER MATTERS IN CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, that: SECTION 1. AUTHORITY FOR THIS RESOLUTION. This Resolution is adopted pursuant to the Constitution of Florida, Section 125.01, Florida Statutes, and other applicable provisions of law and Resolution No. 93-80 of the Board of County Commissioners of Indian River County, Florida (the "Original Resolution"). SECTION 2. DEFINITIONS. Unless the context otherwise requires, the terms defined in this section shall have the meanings specified in this section. Words importing singular number shall include the plural number in each case and vice versa and words importing persons shall include firms and corporations. Except as otherwise provided herein, all defined terms in the Original Resolution shall have the same meanings when used herein. "Acquisition Agreement'f shall mean that certain Interlocal Agreement Providing for the Transfer and Assumption of the City of Sebastian Water and Wastewater System between the City and the County, the form of which is attached hereto as Exhibit A, pursuant to which the County is to acquire the City System from the City. B-1 U-1 11 "Bonds" shall mean the outstanding principal amount of the County's Water and Sewer Revenue Bonds, Series 1993 A and the ,., County's Water and Sewer Revenue Bonds, Series 1993 B, issued under and pursuant to the original Resolution. "City" shall mean the City of Sebastian, Florida. "City Bonds" shall mean the outstanding principal amount of the City of Sebastian, Florida Utilities System Revenue Bonds, .� Series 1993. "City Bond Resolution" shall mean Resolution No. R-93-67 as 4111 adopted by the City and as amended from time to time. "City Obligations" shall mean the obligations of the City imposed by the City Bond Resolution, including, but not limited to, the payment of debt service on the City Bonds and the observance of the covenants of the City undertaken as part of the City Bond Resolution. "City System" shall mean the water and sewer system of the City existing on the date of the acquisition thereof by the County in accordance with the terms of the Acquisition Agreement. "County" shall mean Indian River County, Florida, a political subdivision of the State of Florida. "Paying Agent" shall mean, as to the City Bonds, The Bank of New York Trust Company of Florida, as successor to Barnett Banks Trust Company, N.A., its successors and assigns, as paying agent and registrar for the City Bonds. "Registrar" shall mean, as to the City Bonds, the Paying Agent. "Resolution" shall mean this Resolution, as from time to time amended or supplemented, in accordance with the terms hereof. SECTION 3. FINDINGS. It is hereby ascertained, determined and declared that: (A) The County now owns, operates and maintains the System and will continue to derive revenue from the rates, fees, rentals and other charges made and collected for the service of such System, which Revenues and the other revenues pledged pursuant to the provisions of the Original Resolution are not now pledged or JIM encumbered in any manner, except for the payment of the Bonds, including any obligations issued on a parity therewith. (B) The County deems it necessary and in its best interest of and in furtherance of the health and safety of the citizens and residents of the County and the City to provide for the acquisition B-2 of the City System from the City and the assumption of the City Obligations, which City Obligations are to be on a parity with the Bonds. The acquisition program herein described will be advantageous to the County by allowing it to operate an integrated System within the County in order to better serve the citizens and residents of the County. (C) The principal of and interest and redemption premium, if any, on the City Bonds, the Bonds and all reserve and other payments shall be payable solely from the Pledged Funds as provided herein and in the Original Resolution. The County shall never be required to levy ad valorem taxes on any real or personal property therein to pay the principal of and interest on the City Bonds or to make any other payments provided for herein. The City Bonds and the City Obligations herein assumed shall not constitute a lien upon any properties owned by or located within the boundaries of the County. (D) The Original Resolution in Section 17(P) thereof provides ., for the issuance of Additional Parity Bonds under the terms, limitations and conditions provided therein. (E) The County has complied with the terms, conditions and restrictions contained in the Original Resolution. The County is, therefore, legally entitled to assume the City Obligations and the City Bonds as Additional Parity Bonds with the authorization contained in the Original Resolution. (F) The City Obligations related to the operation of the City System and the disposition of the revenues of the City System are not greater than the existing obligations of the County regarding the operation of the System and the disposition of the Pledged Funds under the Original Resolution, and as a result, the assumption thereof by the County will not cause the County to undertake any obligations more burdensome than those previously undertaken pursuant to the Original Resolution. (G) The City Obligations and City Bonds herein authorized to be assumed by the County shall be on a parity and rank equally, as to lien on and source and security for payment from the Pledged Funds and in all other respects, with the Bonds. SECTION 4. AUTHORIZATION OF ASSUM13TIO14 OF CITY OBLIGATIONS AND ACQUISITION OF THE CITY SYSTEM. There is hereby authorized the assumption of the City Obligations and the City Bonds in the manner provided herein and in the Acquisition Agreement, and the acceptance and acquisition of the City System, in accordance with the terms and conditions of the Acquisition Agreement is hereby authorized. Upon the acquisition of the City System, the City System shall be integrated into and become a part of the System to be operated by the County thereafter as part of the System, and no B-3 am separate accounting for the City System shall be required thereafter. SECTION S. RESOLUTION TO CONSTITUTE CONTRACT. In consideration of the acceptance of the assumption of the City Obligations and the City Bonds authorized to be assumed hereunder by those who shall hold the same from time to time, this Resolution shall be deemed to be and shall constitute a contract between the County and such Holders. The covenants and agreements herein set '. forth to be performed by the County shall be for the equal benefit, protection and security of the legal Holders of any and all of the Bonds, all of which shall be of equal rank and without preference, priority or distinction of any of the Bonds over any other thereof, except as expressly provided therein and herein. SECTION 6. AUTHORIZATION OF ASSUMPTION OF CITY BONDS. "o Subject and pursuant to the provisions hereof, the obligations of the City known as the City of Sebastian, Florida Utilities System Revenue Bonds, Series 1993 are authorized to be assumed by the ,. County in the aggregate principal amount of not exceeding $5,000,000. Said Assumption shall be effective automatically and without further action on the part of the County as of the date of s closing referenced in the Acquisition Agreement. SECTION 7. NEGOTIABILITY, REGISTRATION AND TRANSFER OF CITY BONDS. The Registrar for the City Bonds shall continue to keep books for the registration of and for the registration of transfers of the City Bonds as provided in the City Bond Resolution. The transfer of any City Bonds may be registered only upon such books and only upon surrender thereof to the Registrar together with an assignment duly executed by the bondholder or his attorney or legal representative in such form as shall be satisfactory to the Registrar. SECTION S. OWNERSHIP OF CITY BONDS. The person in whose name any City Bond shall be registered shall be deemed and regarded +. as the absolute owner thereof for all purposes, and payment of or on account of the principal or redemption price of any such City Bond, and the interest on any such City Bonds shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such City Bond including the premium, if any, and interest thereon to the extent of the sum or sums so paid. SECTION 9. PROVISIONS FOR REDEMPTION. The City Bonds shall be subject to redemption prior to their maturity, at the option of the County, at such times and in such manner as are fixed by the City Bond Resolution. Notice of such redemption shall be made in accordance with the City Bond Resolution. B-4 �1 ^ SECTION 10. APPLICATION OF PROVISIONS OF ORIGINAL RESOLUTION. The City Bonds herein authorized shall, for all ^ purposes (except as herein expressly provided) be considered to be Additional Parity Bonds issued under the authority of the Original Resolution, and shall be entitled to all the protection and security provided therein for the Bonds, and shall be in all ^ respects entitled to the same security, rights and privileges enjoyed by the Bonds. The covenants and pledges contained in the Original Resolution shall be applicable to the City Bonds herein authorized in like manner as applicable to the Bonds, in lieu of the covenants and pledges set forth in the City Bond Resolution and applicable to the City Bonds, to the extent any such covenants and pledges contained in the Original Resolution impose a greater burden on the County than was imposed on the City under the City Bond Resolution; ^ provided, however, that to the extent the City Bond Resolution imposes covenants and pledges on the City which are either not imposed on the County under the Original Resolution or impose a greater burden than similar covenants and pledges imposed on the County by the Original Resolution, then such additional covenants and pledges so imposed by the City Bond Resolution shall be hereinafter imposed on the County. The principal of and interest on the City Bonds shall be hereafter payable from the Sinking Fund established in the Original Resolution on a parity with the Bonds, and payments shall be made into such Sinking Fund by the County in ^ amounts fully sufficient to pay the principal of and interest on the Bonds and the City Bonds as such principal and interest become due. All funds and accounts created pursuant to the Original ^ Resolution shall be held by the County in trust for the holders of the Bonds and the City Bonds. The Pledged Funds shall immediately be subject to the lien of ^ this pledge without any physical delivery thereof or further act, and the lien of this pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the County. SECTION 11. COVENANTS OF THE COUNTY. The provisions of Section 17 of the Original Resolution shall be deemed applicable to ^ this Resolution and shall apply to the City Bonds assumed pursuant to this Resolution as though fully restated herein. ^ SECTION 12. VALIDATION AUTHORIZED. The attorney for the County, in conjunction with the County's Bond counsel, is hereby authorized and directed to cause proceedings for the validation of ^ the assumption of the City Obligations and the City Bonds to be instituted and maintained in the Circuit Court in and for Indian River County, Florida. ^ SECTION 13. SEVERABILITY. If any one or more of the covenants, agreements or provisions of this Resolution should be ^ ^ B-5 held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against ., public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separate from the remaining covenants, agreements or provisions of this Resolution or of the City Bonds assumed hereunder. SECTION 14. INCONSISTENT RESOLUTIONS. All prior resolutions of the County inconsistent with the provisions of this Resolution are hereby modified, supplemented and amended to conform with the provisions herein contained. SECTION 15. EFFECTIVE DATE. The provisions of this Resolution shall take effect immediately upon its passage. PASSED AND ADOPTED the day of 1995. (SEAL) ATTEST: County B-6 BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA Chairman APPENDIX C Consent of Bond Insurer m m .. Members of the City Council City of Sebastian Sebastian, Florida ~ Board of County Commissioners Indian River County Vero Beach, Florida r ' RE: City of Sebastian, Florida Utilities System Revenue Bonds, Series 1993 Ladies and Gentlemen: The undersigned, on behalf of Municipal Bond Investors Assurance Corporation, the insurer of the above -referenced bonds (the "Bonds"), does hereby consent to the provisions of Resolution No. of the City Council of the City of Sebastian, Florida (the .. "City"), which resolution amends certain provisions of City Resolution No. R-93-67, securing the Bonds (the "Bond Resolution"), and to the assumption by Indian River County of the obligations of _ the City under the Bond Resolution. In witness whereof, I have hereunto set my hand this day of 1995. so M • ri W r_i MUNICIPAL BOND INVESTORS ASSURANCE CORPORATION C-1 L] m do L� APPENDIX D County Bond Counsel Opinion m m M (form of opinion of Bryant, Miller and Olive, P.A.) Members of the City Council City of Sebastian, Florida Ladies and Gentlemen: We have acted as bond counsel to Indian River County, Florida (the "County") in connection with the acquisition by the County of a water and wastewater system (the "Sebastian Utility System") owned by the City of Sebastian, Florida (the "City"). In connection with such acquisition, the County is assuming the obligations of the City under City Resolution No. R-93-58 (the "Bond Resolution"), which resolution secures the City's Utilities System Revenue Bonds, Series 1993 (the "Bonds"). In our capacity as bond counsel, we have examined the following: (i) the Bond Resolution; (ii) Resolution No. of the City, adopted , .. 1995, amending the Bond Resolution in certain respects (the "City Amending Resolution"); (iii) the Interlocal Agreement Providing for the Transfer and Assumption of the City of Sebastian Water and Wastewater System, by and between the City and the County, adopted , 1995 (the "Interlocal Agreement"); (iv) Resolution No. of the Board of County Commissioners of the County, adopted , 1995 (the "County Resolution"), agreeing to accept and acquire the Sebastian Utility System and assuming the City's obligations under the Bond Resolution; (v) the consent of Municipal Bond Investors Assurance Corporation, the insurer of the Bonds, to ., the provisions of the City Amending Resolution and the assumption by the County of the City's obligations under the Bond Resolution; and (vi) such other records, documents, certificates, proceedings and questions of law as we have considered necessary to enable us to render this opinion. Based upon such examination, we are of the opinion that: 1. The City Amending Resolution complies with the provisions of Article VIII of the Bond Resolution. 2. Based upon the City Amending Resolution, the lien of the Bond Resolution on the City's Half -Cent Sales Tax Revenues (as defined therein) has been released. This opinion is rendered solely for your benefit and is not intended to be relied upon by any other party. Respectfully submitted, M D-1 M dim [_] APPENDIX E ordinance consenting to Special Assessments M am M M ORDINANCE NO. 95 - AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, CONSENTING TO THE IMPOSITION OF SPECIAL ASSESSMENTS AND OR THE INCLUSION OF ALL OF ITS INCORPORATED AREAS WITHIN ONE OR MORE MUNICIPAL SERVICE BENEFIT UNITS CREATED BY INDIAN RIVER COUNTY TO PROVIDE WATER OR WASTEWATER FACILITIES, SERVICES OR PROGRAMS; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, FLORIDA: SECTION 1.01. FINDINGS. It is hereby ascertained, determined, and declared that: (A) Section 125.01(1)(q), Florida Statutes, provides _ legislative authorization for the governing body of a county to establish a municipal service benefit unit for all or any part of the unincorporated area within its boundaries, or within the municipal boundaries of an incorporated area upon consent of the governing body of the affected municipality, within which may be _ provided water or wastewater facilities, services or programs, and other related essential facilities and municipal services. (B) The Board of County Commissioners of Indian River County, Florida (the "County") and the City Council of the City of Sebastian (the "City") have entered into an interlocal agreement _ providing for the transfer of the City's water and wastewater utility system to the County which authorizes the County to provide such services within the incorporated areas of the City. This ordinance shall be construed as authorizing the County to establish a municipal service benefit unit and or to impose and collect water E-1 .o s and wastewater assessments within the incorporated area of the City. (C) The City Council of the City of Sebastian has determined that the creation of a municipal service benefit unit and or the imposition of special assessments for the purpose of providing water and wastewater services, facilities and programs is in the best interests of the owners of property within the corporate limits of the City. SECTION 1.02. CONSENT OF THE CITY OF SEBASTIAN. The City Council of the City of Sebastian hereby consents to the inclusion of all of the incorporated area of the City within one or more municipal service benefit units created by the County to provide water and wastewater services, facilities, and programs and or to the imposition of a special assessment for such purposes. Such consent shall become effective upon adoption of this Ordinance and transfer of the City's water and wastewater utility system to the County pursuant to interlocal agreement. The City Council finds that such provision of water and wastewater services, facilities and programs is an essential municipal purpose. SECTION 1.03. SEVERABILITY. The provisions of this Ordinance are severable; and if any section, subsection, sentence, clause or provision is held invalid by any court of competent jurisdiction, the remaining provisions of this Ordinance shall not be affected thereby. SECTION 1.04. EFFECTIVE DATE. This Ordinance shall take effect as provided by law. E-2 DULY ENACTED this _ day of 1995. (SEAL) CITY COUNCIL OF THE CITY OF SEBASTIAN, FLORIDA ATTEST: Clerk E-3 BV• Mayor ., ., APPENDIX F Closing Documents M M w M M �1 CERTIFICATE REAFFIRMING REPRESENTATIONS WHEREAS, Indian River County, Florida, a political subdivision of the State of Florida (the "County"), and the City of Sebastian, a municipal corporation and body politic existing under the laws of the State of Florida, (the "City"), entered into that certain Interlocal Agreement Providing for the Transfer and Assumption of the City of Sebastian Water and Wastewater System on the day of July, 1995 (the "Interlocal Agreement"); and WHEREAS, Section 5.02 of the Interlocal Agreement provides that each party deliver a certificate to the other reaffirming the representations and warranties therein. NOW, THEREFORE, to comply with Section 5.02 of the Interlocal Agreement, the City does hereby certify to the County the following: 1. That the representations and warranties of the City in the Interlocal Agreement are true and correct in all material respects as of the date hereof with the same effect as if such representations and warranties were made or given on the date hereof; and 2. That the City has performed in all material respects all of its obligations and has complied with all of the covenants and .. agreements required by the Interlocal Agreement to be performed or complied with by the City prior to or on the date hereof, unless waived in writing by the County. IN WITNESS WHEREOF, the City has executed this certificate as of this day of , 1995. THE CITY OF SEBASTIAN, FLORIDA (SEAL) By: Mayor ATTEST: KATHRYN M. O'HALLORAN, City Clerk By: Deputy Clerk F-1 M CERTIFICATE REAFFIRMING REPRESENTATIONS �. WHEREAS, Indian River County, Florida, a political subdivision of the State of Florida (the "County"), and the City of Sebastian, a municipal corporation and body politic existing under the laws of the State of Florida, (the "City"), entered into that certain Interlocal Agreement Providing for the Transfer and Assumption of the City of Sebastian Water and Wastewater System on the day of July, 1995 (the "Interlocal Agreement"); and WHEREAS, Section 5.02 of the Interlocal Agreement provides that each party deliver a certificate to the other reaffirming the representations and warranties therein. NOW, THEREFORE, to comply with Section 5.02 of the Interlocal Agreement, the County does hereby certify to the City the ON following: 1. That the representations and warranties of the County in the Interlocal Agreement are true and correct in all material respects as of the date hereof with the same effect as if such representations and warranties were made or given on the date ., hereof; and 2. That the County has performed in all material respects all of its obligations and has complied with all of the covenants and agreements required by the Interlocal Agreement to be performed or complied with by the County prior to or on the date hereof, unless waived in writing by the City. IN WITNESS WHEREOF, the County has executed this certificate as of this day of 1995. BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA ( SEAL) ATTEST: By: Chairman JEFFREY K. BARTON, Clerk of the Circuit Court and Ex -Officio Clerk of the Board of County Commissioners of Indian River County, Florida 3 V_ ,. Deputy Clerk F-2 - This instrument prepared by or under the supervision of: Haw: Clifton A. McClelland, Jr., Esq. Potter, McClelland, Marks & Healy, P.A. ,.., Address: 700 S. Babcock Street, Suite 400 Melbourne, FL 32901 DEED — THIS DEED, made this day of 1995, by the CITY OF SEBASTIAN, FLORIDA, party of the first part, and INDIAN RIVER COUNTY, FLORIDA, party of the second part, - WITNESSETH that the said party of the first part, for and in consideration of the sum of Ten Dollars ($10.00) to it in hand paid — by the party of the second part, receipt whereof is hereby acknowledged, has granted, bargained and sold to the party of the second part, the following described land lying and being in Indian River County, Florida: See Exhibit ItAn attached hereto and by this reference made a part hereof. - SUBJECT TO: 1. Taxes and assessments for the year 199_ and subsequent - years. 2. All laws, ordinances and governmental regulations, - including, but not limited to, all applicable building, zoning, land use and environmental ordinances, regulations, restrictions, prohibitions and other requirements, none of which will prevent or hinder the present use of the Property. 3. Restrictions and easements for utilities and drainage set out in recorded plats of subdivisions. — 4. Restrictions of record. 5. All matters which would be disclosed by an accurate survey of the Property. IN WITNESS WHEREOF the said party of the first part has caused these presents to be executed in its name by its City Council — F-3 — acting by the Chairman or Vice Chairman of said Council, the day and year aforesaid. (OFFICIAL SEAL) ATTEST: M Kathryn M. O'Halloran, CMC/AAE M CITY OF SEBASTIAN, FLORIDA, a municipal corporation, by its City Council By: Chairman (or Vice Chairman) STATE OF § COUNTY OF § The foregoing Deed was sworn to and subscribed before me this ., day of , 1995 by , Mayor of the City of Sebastian, on behalf of the City. He is personally known to me or has produced as identification and did take an oath. Printed Name: Notary Public, State of Florida At Large My Commission Expires: Commission No.: F-4 M PARCEL I: All of Tract "D" as shown on the plat of SEBASTIAN HIGHLANDS UNIT -17, as recorded in Plat Bock 8. Page 46, Public Records of Indian River County, Florida. PARCEL II: A parcel of land located in the Northeast 1/4 of the Northeast 1/4; LESS the East 20 acres thereof and a portion of the Southeast 1/4 of the Northeast 1/4 of section 18, Township 31 South, Range -39 East, Indian River County, Florida, and being more particularly described as follows: Begin at the Northeast corner of said section 18, Township 31 South, Range 39 East; thence South 89022136" West, along the North line of the said Northeast 1/4 of Section 18, a distance of 657.45 feet to the Northwest corner of the said East 20 acres of the Northeast 1/4 of the Northeast 1/4; thence South 00001124" West, along the West line of the said East 20 acres, a distance of 1325.55 feet, to a point in the south line of the said Northeast 1/4 of the Northeast 1/4; said point also being ,the Northwest corner of Sebastian Highlands Unit 9, as recorded in Plat Book 6, Page 36A, Public Records of Indian River county, Florida; thence continue along the boundary of said plat of Sebastian Highlands Unit 9, the following courses and distances: thence COUtinue South 00004.12411 West, a distance of 130.66 feet .. to a point in a curve concave to the southwest having a radius of 435.64 feet, the chord of which bears North 85020121" West; thence Westerly along the arc of said curve, a distance of 70.30 feet, through a central angle of 0901414811, departing said platted boundary; thence North 00001124" East, a distance of 54.11 feet; thence south 89°19'02" West, a distance of 71.5 feet more or less, to the Easterly waters edge of Schumann Lake; thence Northwesterly, Westerly, Southerly, Southeasterly, Southwesterly, Westerly and Southerly meander the waters edge of Schumann Lake, a distance of 1947,feet, more or less, to the South line of the said Southeast 1/4 of the Northeast 1/4; thence South 99015127" West, along the South line of the said .. southeast 1/4 of the Northeast 1/4, a distance of 97.9 feet, more or less, to the southwest corner of the said southeast 1/4 of the Northeast 1/4; thence North 00"A1125" West, along the West line of the said East 1/2 of the Northeast 1/4, a distance of 2652.47 feet to the aforesaid North line of the Northeast 1/4; thence North 8902213611 East along the said North line, a distance of 673.15 feet to the Point of Beginning. PARCEL III: The East 200 feet of Tract "A", SEBASTIAN HIGHLANDS, UNIT 9, according to the plat thereof, recorded in Plat Book 6, Page 36 and 36A, Public Records of Indian River County, Florida. F-5 BILL OF SALE THIS BILL OF SALE evidencing the sale and conveyance of the Sebastian Utility System, as described in that certain Interlocal Agreement dated [date] is made and executed this day of _ 1995 by City of Sebastian, a municipal corporation and body politic existing under the laws of the State of Florida, (the "City"), whose address is 1225 Main Street, Sebastian, Florida 32958, hereinafter called the seller, to Indian River County, Florida, a political subdivision of the State of Florida, whose address is 1840 25th Street, Vero Beach, Florida 32960, hereinafter called the buyer; WITNESSETH: That the seller, for and in consideration of the sum of $10.00 and other valuable considerations, receipt whereof is hereby acknowledged, by these presents does grant, bargain, sell, alien, remise, release, convey and confirm unto the buyer, all that certain personal property which is a part of the Sebastian Utility System situate in Indian River County, Florida, as more particularly described on Exhibit A attached hereto and incorporated herein. SAID Sebastian Utility System also includes all the tenements, hereditaments and appurtenances thereto belonging or in anywise appertaining, including but not limited to, all water and wastewater facilities of every kind and nature lying within public rights-of-way and all appurtenant easement rights for the operation, installation and maintenance of said facilities. SUBJECT TO the Interlocal Agreement Providing for the Transfer and Assumption of the City of Sebastian Water and Wastewater System dated July _, 1995 between the buyer and seller and the obligations, duties and liabilities assumed by the buyer thereunder. TO HAVE AND TO HOLD, the same in fee simple forever. IN WITNESS WHEREOF the seller has caused these presents to be executed in its name, and its corporate seal to be hereunto affixed, by its proper officers thereunto duly authorized, the day and year first above written. THE CITY OF SEBASTIAN, FLORIDA (SEAL) By. Mayor F-6 ., _ ATTEST: KATHRYN M. O'HALLORAN, City Clerk By: Deputy Clerk STATE OF § § COUNTY OF § The foregoing Bill of Sale was sworn to and subscribed before me this day of , 1995 by Mayor of the City of Sebastian, on behalf of the City. He is personally known to me or has produced as identification and did take an oath. 0 This Instrument prepared by: .. [Name and address of preparer] Printed Name: Notary Public, State of Florida At Large My Commission Expires: Commission No.: F-7 EXHIBIT A TO BILL OF SALE FROM CITY OF SEBASTIAN, FLORIDA TO INDIAN RIVER COUNTY, FLORIDA All of the City of Sebastian's water production, treatment plants, storage treatment, transmission, distribution, pumping and other water facilities, including without limitation, water wells and fire hydrants, and all wastewater treatment plant, wastewater collection, transmission, pumping and disposal facilities of every - kind and description whatsoever, including, without limitation, all trade fixtures, leasehold improvements, lift stations, pumps, generators, controls, collection and transmission pipes or facilities, valves, meters, service connections, and all other water and wastewater service connections, and all other water and wastewater physical facilities, together with all machinery, and equipment used in the course of the day-to-day operations of the City of Sebastian Water and Sewer System. l,1m APPENDIX G Future Incorporated Area Service objectives N m a a z N m C n m APPENDIX G APPENDIX H service Agreements SERVICE AGREEMENTS The County specifically agrees to be bound by and substitute for the City for any obligation which the City has arising from the following: (1) Agreement between Indian River County and Nelson Hyatt .. dated July 11, 1989, as amended. (2) Interlocal Agreement between Indian River County and the City of Sebastian Re: Sebastian Lakes Service Area Agreement dated December 29, 1994, and the Water and Wastewater Service and Contribution Agreement dated February 9, 1994. (3) Any obligations for impact fees which have been paid and the service agreements listed on H-2. (4) Utility Agreement dated March 4, 1993 between Citrus Utilities, Inc. and General Development Utilities, Inc. .. The County will not indemnify and the City will hold the County harmless from any and all liability arising out of the case styled Citrus Utilities. Inc. v. General Development Utilities, Inc. and Citv of Sebastian; Case Number 94 -0202 -CA -03 filed in the Circuit Court of Indian River County, Florida. H-1 AGREEMENT WITH AGREEMENT DATE M H-2 M Andell, Inc. September 9, 1992 B.W. Simpkins Trust & F.A. Sheriff Trust June 26, 1989 Church of God, Inc. September 2, 1988 .. Donald E. Pinder March 28, 1990 Scotad, Inc. August 24, 1989 Scotad, Inc. June 28, 1989 Trinity Lutheran Church April 25, 1993 Roy Wissel d/b/a Wissel Construction February 14, 1989 School District of Indian River County November 24, 1980 Reflections on the River, Inc. December 10, 1982 Calvary Baptist Church June 16, 1983 Muller Enterprises, Inc. December 5, 1983 Sebastian Lakes Association November 14, 1984 Clare Sommers & Roberta Jones September 14, 1984 Jean M. Burdsall August 27, 1984 Indian River School Board November 13, 1984 Edward V. Hulse October 15, 1984 First Baptist Church Mission June 27, 1985 James M. McClain July 12, 1985 Sebastian Plumbing December 9, 1985 General Development Corp. December 26, 1985 City of Sebastian December 18, 1985 Arnold's Air Conditioning, Inc. January 10, 1986 M.G.B. Homes, Inc. February 6, 1986 Fellsmere Properties, Inc. February 12, 1985 Sebastian Vol. Fire Dept. & Rescue, Inc. August 10, 1986 James R. Havens January 22, 1987 �. Lonnie R. & Mary B. Powell April 14, 1987 Cumberland Farms, Inc. May 1, 1987 Drs. Peter & Katherine Gutierrez April 5, 1988 Sebastian General Partneship B.F.T. December 17, 1991 Barnett Bank of Treasure Coast November 16, 1992 M H-2 M .. ANTICIPATED REVENUE AND EXPENDITURE FOR DEBT SERVICE PRO -FORMA $17,000,000 DEBT Debt Amount Ann Payment Interest Rate # of Years 5 17,000,000 $ 1,169,690 5.50% 30 Breakdown of Debt Proceeds: $12 m for Water Improvements $ 5 m for Wastewater Improvements 14.0 Annual # of Avg Gallons (000s) Customers Consump/Gust Avg Water Consump: 103,512 1,650 63,000 Avg Sewer Consump: 41,520 638 65,000 Base Facility Avg Use Annual Avg Chgs/Mth CosVCust/Mth Cost/Cust Water $ 13.50 $ 16.43 $ 323.27 Water $ 13.50 $ 16.43 $ 323.27 Sewer $ 16.75 $ 19.55 $ 500.65 FY 95 Avg Util Rev/Water & Sewer Cuss $ 823.92 Water & ., Water Only Sewer Customers Customers Total Revenue FY 95 Revenue $308,934 $502,694 $811,628 Assumptions: a) Customer Growth 10% per Annum b) No Change in BFCs c) Consumption per Customer remains Constant d) New Utility Rate incorporated in FY95 and future revenues e) Expenditure will increase at 5% per Annum Water Only Sewer & Water Anticipated Surplus/ Customers Customers Revenue Expenditure (Shortage) FY95 1,012 638 $811,628 $1,068,445 ($256,817) .. FY96 1,113 702 $938,193 $2,238,135 ($1,299,942) FY97 1,224 772 $1,031,751 $2,350,042 ($1,318,291) FY98 1,346 849 $1,134,632 $2,467,544 ($1,332,912) FY99 1,481 934 61,248,307 $2,590,921 ($1,342,614) FY00 1,629 1,027 $1,372,775 $2,720,467 ($1,347,692) FY01 1,792 1,130 $1,510,332 $2,856,490 ($1,346,158) FY02 1,971 1,243 $1,661,301 $2,999,315 ($1,338,014) FY03 2,168 1,367 $1,827,152 $3,149,281 ($1,322,129) FY04 2,385 1,504 $2,010,179 $3,306,745 ($1,296,566) FY05 2,624 1,654 $2,211,028 $3,472,082 ($1,261,054) FY06 2,886 1,819 $2,431,672 $3,645,686 ($1,214,014) FY07 3,175 2,001 $2,675,051 $3,827,970 ($1,152,919) FY08 3,493 2,201 $2,942,636 $4,019,369 ($1,076,733) FY09 3,842 2,421 $3,236,720 $4,220,337 ($983,617) FY10 4,226 2,663 $3,560.245 $4,431,354 ($871,109) FY11 4,649 2,929 $3,916,151 64,652,922 ($736,770) FY12 5,114 3,222 $4,307,881 $4,885,568 ($577,687) FY13 5,625 3,544 $4,738,375 $5,129,846 ($391,471) FY14 6,188 3,898 $5,212,045 $5,386,339 ($174,294) FY15 6,807 4,288 $5,733,479 $5,655,656 $77,823 14.0