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HomeMy WebLinkAbout1990 01 15 - Park Place Surcharge• UT1fINHSURCH.HEA):cew PA2K P1.ACF INDIAN RIVER COUNTY DEPARTMENT OF UTILITY SERVICES INTER -OFFICE MEMORANDUM DATE: JANUARY 25, 1990 TO: ED FRY FINANCE DIRECTOR THRU: TERRANCE G. PINTO DIRECTOR OF UTILI Y ERVICES FROM: HARRY E. ASHER ASSISTANT DIRECTOR OF UTILITY SERVICES SUBJECT: PAYMENT OF SURCHARGE COLLECTED - NELSON HYATT Please prepare a check, payable to Nelson Hyatt, in the amount of $4,510.00, which represents surcharge amounts collected August 1989 through December 1989 in Account No. 471-000-202-014.00. Please return the check to the Utilities Department for processing. HEA:cew i When a person is arrested by the police, the person is read his rights, if not, when in court the case is dismissed by the Judge! Well here I go back on June 2, 1989, Mr. James E. Chandler (County Administrator) received 6 pages from book 77 pages 287 thru 292 titled "PUBLIC HEARING - PURCHASE OF LAKE DELORES UTILITIES". The hour of 9:05 o'clock A.M. having passed, the Deputy Clerk read the following notice with proof of publication attached, to wit: I charge that the publication which was published June 9 & 16 1989 was illegal because the description was not correct as to the legality of the public notice. On page 288 it reads as follows: "SUBJECT: ACQUISITION OF NELSON HYATT WATER AND SEWER UTII.ITIES SERVING PARK PLACE MOBILE HOME PARK (FORMERLY LAKE DELORES UTILITY SYSTEM)" If on June 9 & 16 1989 the public notice described the wrong name in the newspaper and no objection was voicedjt was because of the manipulation of describing the wrong place! It should be nulled and voided, thrown out. Someone knew what they were doing to eliminate the opposition! Chairman Wheeler opened the public hearing and asked if anyone wished to be heard in this matter. There was no one probably because Park Place residents did not recognize the name "LAKE DOLORES UTIL Y SYSTEM" which was used in the published June 9 & 16 notice; and, referenced as the former name of the "NELSON HYATT WATER AND SEWER SYSTEM" in the June 2, 1989 memo to Mr. Chandler (Reference Book 77 Pages 287 & 288)! Who defends the defenseless? When this more or less two or three named public notice was in the record books of #77 and pages 287 thru 292, there were 80 residents who were not told that they were victimized. Now there are 200 residents or victims of an illegal public notice each paying a $10 monthly surcharge. Some have been paying this surcharge for almost five years (nearly $600). I have been paying it, so far, for twenty-eight months. I am tired of it and so are a lot of others! Who ever heard of a franchise fee, a utility tax of 10% for the amount of water not to exceed $2.50. Water seems to be a luxury instead of a necessity for lifel �t� l&/Ceteu z. Cc.z- LLQ LC,� �.�tCC.2Gt-CEaC BOARD OF COUNTY COMMISSIONERS 1,490 25th Street, Vero Reach, Florida 32960 Telephone: (407) 567-8000 January 12, 1993 TO WHOM IT MAY CONCERNS Re: County policy on paying water and Bower Impact f mobile home units connecting to County utilities Dear Mobile Home Park Resident: Suncom Telephone: 224-1011 At a public hearing called by the County commission recently to discuss matters of public interest relating to the County utility system it became evident that there in a misunderstanding of the County policy concerning who pays water and sewer impact fees on the connection of any mobile home unit to the County utility system. Several residents indicated that the park owners were demanding payment of impact fees at the time a living unit was transferred to a new owner and would not issue a park certificate of occupancy or a new lease agreement, /saying that this payment by the new owner was required by the County. The County policy has consistently been to require payment of the impact fees from the park owner, since the park owner is the property owner. While the numerous contracts between the County and mobile home park owners negotiated over the last 20 years are not identical, a common term of many of the new agreements is that at the time of sale of a home in a park the park owner must pay the County the current impact fee. Whether the park owner could pass that charge through to the new home owner has never been determined by the County Commission. That is subject to Chapter 723, Florida Statutes, and is strictly a matter of law and contract between the park owner and the home owner. In summary, the County's position is that the County utility system the park owner fee or make arrangements to pay it, and pass that charge through to the home owns by those two parties. Sincerely, BOARD OF COUNTY COMMISSIONERS Richard N. Bird Chairman RNB/Vk on the connection of any unit to must either pay the current impact whether the park owner is able to r in a matter which must be settled s. WARRANTY OF TITLE; HOLD HARMLESS: SELLER shall warrant title to all the real and personal property in SYSTEM and shall hold the COUNTY harmless from any and all claims for damages from third parties, and In particular for any claims from LAKE DELORES UTILITIES AND CABLE TELEVISION SYSTEMS,. INC. -� 6. IMPACT FEES: After five years from the date of this agreement SELLER shall be obligated to pay Impact fees to the COUNTY, at the rate then current, for each unit �. which thereafter requires a Certificate of Occupancy. Units which have had a Certificate of Occupancy Issued to them before five years from the date of this agreement must have an Impact fee paid when that unit is resold, without regard to the five-year SELLER's grace period. At closings on such sales, SELLER or successor In title shall collect the Impact fee and remit It to COUNTY. 7. SURCHARGE ON RATES: COUNTY shall establish a surcharge on water and wastewater rates for customers In the service area as shown on Exhibit "D." The surcharge shall be collected by the COUNTY for ten years only or until $777,000.00 has been paid, whichever comes first, and funds so collected shall be remitted quarterly to SELLER. SELLER agrees that the funds so remitted shall be full satisfaction for SELLER's right to be reimbursed for Its equity In the SYSTEM. The COUNTY surcharge shall be $10 per ERU (equivalent residential unit). 8. CLOSING DATE: The closing shall take place on or before August I, 1989. IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the date first set forth above. Attest e y ari Cler t 0 BOARD OF COUNTY COMMISSIONERS INDIAN RIVER COUN�TY,� FLORIDA By ary(jC. Wheeler Chai man (SEAL) hea�ib"Ca I A"amed d•"mn �C 5-30-61 CZESPOUs� Zo 1\'t71�GN� LpT%rQ. FdP'iZ�e'o CA or- Fk G6v 8121"1 City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 M E M O R A N D U M DATE: April 20, 1993 TO Robb McClary, City Manager FROM: Richard B. Votapka, Utilities Director RE Park Place Surcharge on Water Bills There are currently 164 customers on the Park Place Water System as shown on the Indian River County billing statement. By virtue of the Interlocal Utilities Agreement between Indian River County and the City of Sebastian, all customers pay a monthly $10 surcharge on their water/sewer bill. This charge amounts to $1,640 per month or $19,680 per year which is payable to Mr. Nelson Hyatt, the owner of Park Place. The County Take -Over Agreement consummated with Nelson Hyatt was dated July 11, 1989. Article 7 of the agreement state that "The surcharge shall be collected by the County for ten (10) years only or until $777,000 has been paid, whichever comes first, and funds so collected shall be remitted quarterly to seller .... the surcharge shall be $10 per ERU." "The closing shall take place on or before August 1, 1989." To the best of his knowledge, Harry Asher, Assistant, Indian River County Utilities Director said the County started billing the customers on September 1, 1989. The last bill to include the surcharge would therefore be September 1, 1999. Based on this information, there would be six (6) years and four (4) months (76 months) of surcharge billing remaining from May 1, 1993 to September 1, 1999. Total surcharges at the present customer base for the next 76 months would be $124,640. Page 2 Memorandum to Robb McClary April 20, 1993 Jeanette Dale, secretary for Nelson Hyatt, gave me the following information regarding customer connections on a yearly basis: YEAR NO. OF CONNECTIONS 1986 12 1987 20 1988 25 1989 27 1990 34 1991 20 1992 14 1993 9 TOTAL 161 Clubhouse 1 Total 162 (from Jan. to April) There is a discrepancy of two connections between the County's records and those of Park Place. Regardless, the number of connections on a yearly basis from 1991 to the present seems to be on the decline. I would imagine that the decline is certainly reflected by the overall economy. Assuming that growth will increase over the next six years, possibly an estimated growth would increase by 4 mobile homes each year above the preceding year. Therefore, a projected number of connections would be as follows: Per Year Total Surcharge Per Year Based on Avg. Connections 1993 18 182 173 x $120/year=$ 20,760 1994 22 204 193 x $120/year= 23,160 1995 26 230 217 x $120/year= 26,040 1996 30 260 245 x $120/year= 29,400 1997 34 294 277 x $120/year= 33,240 1998 38 332 313 x $120/year= 37,560 1999 42 374 353 x $120/year= 42,360 TOTAL SURCHARGE $212,520 Over 76 months Page Two of Three Minutes of April 28, 1993 Meeting Re: Park Place City of Sebastian POST OFFICE BOX 780127 o SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 DATES April 28, 1993 FROM: Rich Votapka, Utilities Director TO : Robb McClary, City Manager RE Minutes of a meeting between Nelson Hyatt, owner, and Mike Cairns of Park Place and Robb McClary, City Manager. Robb McClary said that there are two (2) items which are frustrating to the residents of Park Place: 1) Impact Fees 2) A Surcharge of $10.00 per month The City of Sebastian needs to tie in rates with GDU eventually, since the City hopes to acquire the GDU system by midsummer. The City currently has a handshake deal with GDU, and would like to work an agreement with Nelson Hyatt, whether in a cash payment or cash and futures. Robb McClary's thinking is that Nelson Hyatt has to deal with the County in regard to sewer. However, concerning the water, the City will offer a dollar amount to buy out Nelson in cash in order to have uniformity in rates and eliminate the surcharge after acquisition of GDU's systems. Robb foresees the original capital investment will create a debt that will have to be paid by rates and expansion by those benefitting. All new expansion will have to be paid by new customers through impact fees. Robb McClary reiterated that the two most important issues to discuss now from the City's standpoint and that of Nelson Hyatt's are as follows: 1) Impact Fees and 5 Year Grace Period until July 11,1994. 2) The $10.00 per month surcharge on every customer's bill. Whatever the City does will hinge on GDU. New customers at Park Place will have to pay sewer impact fees to Indian Riyer County and water impact fees to the City. The City wants to sever the tie to the Indian River County sewer system by installing its own force main to the present Indian River County lift station. The City can offer a "no impact fee" accord to existing residents when the City takes over the sewer system. Page Two of Three Minutes of April 28, 1993 fleeting Res Park Place Park Place currently has 164 customers. At $10/month surcharge, the total yearly amount is approximately $19,000 per year. it will net Nelson Hyatt about $120,000 over 6 years. of course, no one can predict what revenue the next 6 years will bring in. Robb said the dollar amount the City can start with is $70,000 to $80,000. Nelson said that the bank is ready to buy Park Place for $350,000. Robb said that if the bank offers that much, Nelson should pursue the offer. Nelson is looking to reclaim his old Wastewater Treatment Plant (WWTP) from the County. According to Nelson, it is his, but the County removed it from the site once the lift station was connected to the County force main along U.S. Highway No.l. Nelson Hyatt said that the original WWTP was north of Stratton Avenue (now Barber Street) west of the railroad tracks. Nelson referred to the Press Journal article last Sunday regarding Utilities with specific reference to impact fees. Robb said new customers will pay 100% of impact fees. He also said that if the the City can take over the lift station, the City will not ask the 164 existing customers for impact fees once they resell their mobile homes as the current agreement requires. Nelson Hyatt wants to extend the impact fees grace period from 5 years to possibly 10 years. He said that he could possibly realize $440,00 in reimbursement costs the next six years depending on new connections. In 1988 and 1989, Park Place averaged 40 units per year. Park Place currently has 212 lots that are buildable, 162 are already occupied. Nelson wanted to know what was in store for future lots. Robb said that the City will honor the 5 year impact fee grace period and grandfather in the existing residents. The City will have to pay approximately $100,000 in engineering fees and construction costs to install the force main. There will be no impact fees for existing customers. Nelson was under the impression that the City would pay for the water and sewer line expansion when he develops his next phase of Park Place. Both Robb McClary and Rich Votapka stated that any expansion of development requires the developer to expand the water and sewer systems. The systems, once completed and accepted, are dedicated to the City. The cost of constructing the systems are passed onto the individual homeowner when he/she purchases a home in Park Place. The County never has paid for water and sewer expansion in a new development, neither will the City. Page Three of Three Minutes of April 28, 1993 Meeting Ret Park Place In summary, the City will propose to do the followings 1) Will pay for 2 line extensions - one to the water plant; one to the lift station. 2) Will grandfather in "no impact fees" for the existing 164 customers until 5 years expire in July, 1994. 3) Will offer cash - CASH ERU's or Combination The City will have to pay $100,000 for installation of a force main and $53,000 plus for installation of a water main. The $10.00 per month surcharge will be eliminated. Nelson is looking towards a cash payment and a number of ERU's extended to a time certain. The meeting was adjourned with the understanding that we would meet again at 9t30 Ali on Tuesday. May 4, 1993. File, WP Directory/Minutes CITY OF SEBASTIAN UTILITIES DEPARTMENT DATE: May 6, 1993 TIME: 3:00 p.m. [x ] CONFERENCE WITH Nelson Hyatt and Michael Cairns [ ] TELEPHONE CONFERENCE WITH SUBJECT: Park Place Water System Surcharge and Impact Fees RESUME OF CONVERSATION: Robb McClary gave Nelson and Mike a copy of my memo of April, 1993. Nelson wanted to know how his commercial property on US 1 was affected. We discussed the numbers regarding customer connections. Nelson and Mike's projections were high. They had 275,000 based on growth. Water would be 2600 - 3000 gallons daily per household. The County has 1 ERU for each mobile home. Nelson wants to work with $300,00; $150,000 cash now and $150,000 in future revenues. Robb said that the City could let Nelson re- establish the franchise, if we leave it the same way. Mike would prefer taking care of the impact fees. According to Robb, the City can offer impact fee credits. Robb said that we can offer $70,000 to $80,000. Extending the impact fee window from the July 11, 1994 termination of grace period to one or two years beyond is what Nelson would like. The City is offering $140,000 in impact fee credits. Robb offers $80,000 cash and $140,000 impact fee credits for a total of $220,000. aeao/hyatt City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 FAX 407-589-5570 November 3, 1993 Charles I. Nash, Esquire Frese, Nash & Torpy, P.A. 930 S Harbor City Blvd. Melbourne, FL 32901 RE: July 11, 1989 Interlocal Agreement Between Nelson Hyatt and Indian River County, Florida in Reference to Park Place Utilities Systems (f/k/a The Village of Lake Dolores) Dear Charlie: A situation has arisen in Park Place in regard to the above "Agreement" which requires me to seek your legal opinion with respect to the payment of impact fees. A copy of the "Agreement" is attached. I direct your specific attention to Paragraph 6, "Impact Fees", on the last page. With reference to Paragraph 6, a homeowner in Park Place who purchased her residence prior to July 11, 1989, the date the "Agreement" was executed, wishes to sell her home. Both Nelson Hyatt, owner of Park Place, and Harry Asher, Indian River County Assistant Utilities Director, maintain that the homeowner must pay water and sewer impact fees since the home will be resold. The second sentence in Paragraph 6 states "Units which have had a Certificate of Occupancy issued to them before five years from the date of this agreement must have an impact fee paid when that unit is resold without regard to the five year Seller's grace period." Harry Asher maintains that no one in Park Place is grandfathered in prior to the July 11, 1989 "Agreement", that impact fees must be paid for all homes being resold even if a Certificate of Occupancy was issued prior to the July 11, 1989 execution date of the "Agreement". My questions to you are as follows: 1. Since the "Agreement" is between the Seller (Nelson Hyatt) and Indian River County, can Nelson Hyatt or the Coun_} require the homeowners who were not part of the Agreement to pay the impact fees if their Certificates of Occupancy were issued prior to July 11, 1989? Page 2 of 2 November 3, 1993 Letter to Charles Nash, Esquire 2. If Nelson Hyatt is requiring the homeowner whose Certificate of Occupancy was issued prior to July 11, 1989 to pay the impact fees upon resale of the home, wouldn't the homeowner have to have been informed of such condition through a written prospectus, which should have been approved by the Florida Land Sales Board? 3. Does Indian River County have the authority to retroactively require existing homeowners to pay impact fees for water and sewer on a mandatory basis upon takeover of a system? Please respond to the above questions as soon as possible because there are several people, including myself, who desire to have this issue resolved. Sincerely, Richard B. Votapka, P.E. Utilities Director RBV/nsv Enclosure S. WARRANTY OF TITLE; HOLD HARMLESS: SELLER shall warrant title to all the real and personal property In SYSTEM and shall hold the COUNTY harmless from any and all claims for damages from third parties, and in particular for any claims from LAKE DELORES UTILITIES AND CABLE TELEVISION SYSTEMS, INC. 6. IMPACT FEES: After five years from the date of this agreement SELLER shall be obligated to pay Impact fees to the COUNTY, at the rate then current, for each unit �. which thereafter requires a Certificate of Occupancy. Units which have had a Certificate of Occupancy Issued to them before five years from the date of this agreement must have an Impact fee paid when that unit Is resold, without regard to the five-year SELLER's grace period. At closings an such sales, SELLER or successor In title shall collect the impact fee and remit It to COUNTY. 7. SURCHARGE ON RATES: COUNTY shall establish a surcharge on water and wastewater rates for customers In the service area as shown on Exhibit "D." The surcharge shall be collected by the COUNTY for ten years only or until $777,000.00 has been paid, whichever comes first, and funds so collected shall be remitted quarterly to SELLER. SELLER agrees that the funds so remitted shall be full satisfaction for SELLER's right to be reimbursed for Its equity in the SYSTEM. The COUNTY surcharge shall be $10 per ERU (equivalent residential unit). 8. CLOSING DATE: The closing shall take place on or before August 1, 1989. IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the date first set forth above. Attest e y R a6 �toh Cler t �he--Qoatd. BOARD OF COUNTY COMMISSIONERS INDIAN RIVER COUNTY, FLORIDA BY J17cJ Vary/Uti- FieeTer Chai man (SEAL) h�tl no" b A,,,,.,d U31e I�: Tn FrtESE, NASA & TOf2PY, P.A. ATTORNEYS AT LAW GAAV B. FHESE 1 CHAALF.9 Iw NV H- vmcC G. ToR . JR. s ILcx E. ToR GSEOOEV S. FL WSEN j J. PAT cK ANDEEBON LAURA r- ANDEP ON CHAR38s A- SCHDl am Sre m P. IiEU810N WRunert A. GRDREA or Cou sE. November 9, 1993 CR BATES FOe of COUNSEL VIA TELECOPIER NO.: (407) 244-5690 Thomas A. Cloud, Esquire Gray, Harris & Robinson 201 E. Pine Street, Ste. 1200 Orlando, FL 32802-3068 930 S. FLn oe Cny B1vn. Su= 505 MEc ouRNE. F Lo=A 32901 (407) 994-3300 FAX (407) 9513741 tBOARD CER M wTAKAnoN BOARD CEx vW71U & ESTATES W¢ *BOARD CERnPfED MCrW TRW.I.AW RE: City of Sebastian Interlocal Agreement with Indian River County Dear Tom: I have enclosed with this letter a copy of the correspondence I received from Richard B. Votapka, Utilities Director for the City of Sebastian, along with a copy of the document he enclosed with his letter to me. I would appreciate some direction or assistance from you in addressing the questions and concerns raised in Mr. Votapka's correspondence to me. The situation involving the County - Nelson Hyatt Agreement has created significant concern among the residents (renters) at the Park Place manufactured home park. Looking forward to hearing from you soon in this regard. Very truly yours, FRESE1 N H & TORPY, P.A. Charles Ian Nash CIN/bl Enclosures as cc: Richard B Utilities stated Votapka, Director w/out copy of enclosures Kathryn M. O'Halloran, Interim City Manager w/out copy of enclosures 5/IG/DO'I(Lcgal ree5(V10 TP A C R E E M C N T INDIAN RIVE11 COUNTY. FLORIDA, AND NELSON HYATT RC: COUNTY TAKE-OVER OF UTILITY SYSTEM G - THIS ACRCEMENT, made this 11th day of July 1909, between INDIAN RIVER COUNTY, a political subdivision of the Stntc of rlorldn, 1090 25th Strce.t, Vero Bench, rL 229GO (COUNTY) and NELSON HYATT (SELLER), whose address Is 12505 North A -1-A, Vero Beach, PL 729G7 iV I T N E S S E T H "CRCAS, SELLER is the owner of a water and wastewater utility system servicing a portion of the City of Sebastian: and WHERCAS, COUNTY lens embarked on a program of. providing quality water and wastewater service.to as much of Indian River County as is financially feasible: and %VHCREAS, as part of this program, the COUNTY hos approached SELLER concerning purchasing his utility system: and WHEREAS, SELLER has agreed to this purchase by COUNTY, provided that he will have five years in which to finish Ills development, without paying Impact fees, and for those units sold before the end of the five-year period, Impact fees will have to be paid only ns those units arc resold: and WHEREAS, SELLER would Iil(e to receive l.return of initial enpitnl investment of some :777,000 used to construct the utility: and 117iCRCnS, the COUNTY agrees to this, provided that only the Customers in the service area or SYSTEM at the date of•tll(s agreement shall be charged for this expense, NOW. THERErORE, for and In consideration of the mutual covenants contained herein as well as other good and vnlunble consideration, the COUNTY and SELLER agree a follows: ____ __1 ___ S. WARRANTY OF TITLE: HOLD HARMLESS: SELLER shall warrant title to all the real and personal property In SYSTEM and shall hold the COUNTY harmless from any and all claims for damages from third parties, and In particular for any claims from LAKE DELORES UTILITIES AND CABLE TELEVISION SYSTEMS, INC. —� 6. IMPACT FEES: After five years from the date of this agreement SELLER shall be obligated to pay impact fees to the COUNTY, at the rate then current, for each unit which thereafter requirds a Certificate of Occupancy. Units which have had a Certificate of Occupancy Issued to them before five years from the date of this agreement must have an Impact fee paid when that unit is resold, without regard to the five-year SELLER's grace period. At closings on such sales, SELLER or successor In title shall collect the Impact fee and remit it to COUNTY. 7. SURCHARGE ON RATES: COUNTY shall establish a surcharge on water and wastewater rates for customers In the service area as shown on Exhibit "D." The surcharge shall be collected by the COUNTY for ten years only or until $777,000.00 has been paid, whichever comes first, and funds so collected shall be remitted quarterly to SELLER. SELLER agrees that the funds so remitted shall be full satisfaction for SELLER's right to be reimbursed for Its equity in the SYSTEM. The COUNTY surcharge shall be $10 per ERU (equivalent residential unit). 8. CLOSING DATE: The closing shall take place on or before August 1, 1989. IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the date first set forth above. Attest ���At Y �a rton Cl e r t �j� oatd. a.�.� L( vel -8..+-t. 0 BOARD OF COUNTY COWAISSIONERS INDIAN RIVER COUNTY,FLORIDA By cx)IIWheeler Chai man (SEAL) ben Mn Cf I Aeawea uile City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 December 8, 1993 Mr. Nelson Hyatt 2210 E. Lakeview Drive Park Place Sebastian, FL 32958 RE: Payment of Surcharges Collected From Park Place Utility Customers Dear Nelson: It has been brought to my attention by the City Finance Director that you have requested payment of all the surcharge fees collected by the City of Sebastian from the Park Place water/sewer customers. As you may be aware, the City of Sebastian has encountered some problems with interpretation of the County -Park Place Takeover Agreement as well as County billing to the City since May 1, 1993, when the County transferred Park Place to the City. The City is in dispute with the County on billing and the $10.00 surcharge has become a legal issue. On December 1, 1993, the City Council authorized City Attorney Charles Nash to review the Takeover Agreement as soon as possible to resolve the issues brought to their attention. City staff, along with Attorney Nash and Attorney Cloud, are planning to meet at the earliest convenient date following closing of the General Development Utilities Sebastian Highlands water and wastewater system scheduled for December 16, 1993. I would request your patience in regard to payment of the surcharge until such time as we have a legal opinion from our attorneys as to the surcharge. Either the City Manager, City Finance Director, or myself will keep you informed on this matter. Sincerely, �/ �'�Xf l�� 4 Richard B. Votapka, P.E. Utilities Director RBV/nsv CC: Kay O'Halloran, Interim City Manager Marilyn Swichkow, Finance Director Charles Nash, City Attorney f?r5/ CITY OF SEBASTIAN UTILITIES DEPARTMENT DATE: December 14, 1993 TIME: 9:55 a.m. [ ] CONFERENCE WITH [x ] TELEPHONE CONFERENCE WITH Michael Cairns of Park Place (388- 3342) SUBJECT: Waiver of $10.00 Surcharge Fee for One Month's Billing RESUME OF CONVERSATION: Mike called to see if the City could install a meter so the plumbing for a home in Park Place could be tested without having to be charged the $10.00 surcharge for the month. Mike said that his plumbers would only use the water for a day or so and then the house would remain vacant until the new owners moved in the following month. I checked with Marilyn Swichkow in regard to a "temporary" hookup. She said that there is no legal authority within the rate ordinance or rate resolution which would allow any waiver of the surcharge. I called Mike back and told him that I didn't have the authority to waive the surcharge. Therefore, no matter when the meter is installed and whether or not it is installed for testing or otherwise, the surcharge must be collected. ORIGINATED BY: COPY TO: /surcharge WLi.0 City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 MEMORANDUM DATE: March 4, 1994 TO: Marilyn Swichkow, Finance Director FROM: Richard Votapka, Utilities Director )?& ✓ SUBJECT: Park Place MHP $10.00 Surcharge for Utility Customers The City of Sebastian currently charges $10.00 per month per ERU (equivalent residential unit) for only those water and sewer customers located within the Park Place Manufactured Home Park. The City assumed collection of this $10.00 surcharge on May 1, 1993, the date Indian River County transferred the operation and maintenance of the Park Place water system to the City of Sebastian. The $10.00 surcharge was initially established by Indian River County in its "Take -Over Agreement" dated July 11, 1989 between Nelson Hyatt (Seller), owner of Park Place, and Indian River County (County). The surcharge was to be collected by the County for ten (10) years until July 11, 1999, or until $777,000 had been paid to the Seller, whichever came first. The $777,000 represented the initial capital investment used to construct the Park Place water and sewer system. The County agreed to fund the return of the Seller's investment by charging all of the customers within Park Place $10.00 per month. Once Indian River County turned over the Park Place water and sewer systems to the City of Sebastian through a mutual County -City Interlocal Agreement dated April 21, 1992, the City became the collector of the $10.00 surcharge in lieu of the County. Attached are pages 1 and 4 of the July 11, 1989 "County Take -Over Of Utility System" agreement between Indian River County and Nelson Hyatt on which the portion applicable to the surcharge are underlined. Wherever the word "County" appears the "City of Sebastian" shall substitute. A G R E E M E N T BETWEEN INDIAN RIVER COUNTY, FLORIDA, AND NELSON HYATT RE: COUNTY TAKE-OVER OF UTILITY SYSTEM THIS AGREEMENT, made this 11th day of July 1989, between INDIAN RIVER COUNTY, a political subdivision of the State of Florida, 1800 15th Street, Vero Beach, FL 32960 (COUNTY) and NELSON HYATT (SELLER), whose address Is 12SOS North A -t -A, Vero Beach, FL 32963 W I T N E S S E T H WHEREAS, SELLER is the owner of a water and wastewater utility system servicing a portion of the City of Sebastian; and WHEREAS, COUNTY has embarked on a program of providing quality water and wastewater service to as much of Indian River County as Is financially feasible; and WHEREAS, as part of this program, the COUNTY has approached SELLER concerning purchasing h'ls utility system; and WHEREAS, SELLER has agreed to this purchase by COUNTY, provided that he will have five years In which to finish his development, without paying Impact fees, and for those units sold before the end of the five-year period, Impact fees will have to be paid only as those units are resold; and .— —� WHEREAS, SELLER would like to receive a return of his Initial capital investment of some $777,000 used to construct the utility; and —� WHEREAS, the COUNTY agrees to this, provided that - only the customers In the service area of SYSTEM at the date of this agreement shall be charged for this expense, j NOW, THEREFORE, for and In consideration of the mutual covenants contained herein as well as other goad and valuable consideration, the COUNTY and SELLER agree as follows: GXHI�IT �A 1 �gFCFOVE•'E. AG2B�2u: S. WARRANTY OF TITLE; HOLD HARMLESS: SELLER shall warrant title to all the real and personal property In SYSTEM and shall hold the COUNTY harmless from any and all claims for damages from third parties, and In particular for any claims from LAKE DELORES UTILITIES AND CABLE TELEVISION SYSTEMS, INC. 6. IMPACT FEES! After five years from the date of this agreement SELLER shall be obiigated to pay Impact fees to the COUNTY, at the rate then current, for each unit which thereafter requires a Certificate of Occupancy. Units which have had a Certificate of Occupancy Issued to them before five years from the date of this agreement must have an impact fee paid when that unit Is resold, without regard to the five-year SELLER's grace period. At closlncs on such sales, SELLER or successor In title shall collect the Impact fee and remit It to COUNTY. 7. SURCHARGE ON RATES: COUNTY shall establish a surcharge on water and wastewater rates for customers In the service area as shown on Exhibit "D." The surcharge shall be collected by the COUNTY for ten years only or until $777,000.00 has been paid, whichever comes first, and funds so collected shall be remitted quarterly to SELLER. SELLER agrees that the funds so remitted shall be full satisfaction for SELLER's right to be reimbursed for Its equity In the SYSTEM. The COUNTY surcharge shall be $10 per ERU (equivalent residential unit). S. CLOSING DATE: The closing shall take place on or before August I, 1989. IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the date first set forth above. BOARD OF COUNTY COMMISSIONERS INDIAN RIVER COUNTY, FLORIDA Attest By 7 (� 41_ _ Cha i man (/Y 3arton Cler t�jI oayd. i (SEAL) �( n�u' win it.e h Acu mea I Ua�" n.o"m /C 15, 30---f I .....N V_Z_i Page Two of Three Minutes of April 28, 1993 Meeting Re: Park Place City of Sebastian POST OFFICE BOX 780127 0 SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 DATE: April 28, 1993 FROM: Rich Votapka, Utilities Director TO Robb McClary, City Manager RE Minutes of a meeting between Nelson Hyatt, owner, and Mike Cairns of Park Place and Robb McClary, City Manager. Robb McClary said that there are two (2) items which are frustrating to the residents of Park Place: 1) Impact Fees 2) A Surcharge of $10.00 per month The City of Sebastian needs to tie in rates with GDU eventually, since the City hopes to acquire the GDU system by midsummer. The City currently has a handshake deal with GDU, and would like to work an agreement with Nelson Hyatt, whether in a cash payment or cash and futures. Robb McClary's thinking is that Nelson Hyatt has to deal with the County in regard to sewer. However, concerning the water, the City will offer a dollar amount to buy out Nelson in cash in order to have uniformity in rates and eliminate the surcharge after acquisition of GDU's systems. Robb foresees the original capital investment will create a debt that will have to be paid by rates and expansion by those benefitting. All new expansion will have to be paid by new customers through impact fees. Robb McClary reiterated that the two most important issues to discuss now from the City's standpoint and that of Nelson Hyatt's are as follows: 1) Impact Fees and 5 Year Grace Period until July 11,1994. 2) The $10.00 per month surcharge on every customer's bill. Whatever the City does will hinge on GDU. New customers at Park Place will have to pay sewer impact fees to Indian River County and water impact fees to the City. The City wants to sever the tie to the Indian River County sewer system by installing its own force main to the present Indian River County lift station. The City can offer a "no impact fee" accord to existing residents when the City takes over the sewer system. Page Two of Three Minutes of April 28, 1993 Meeting Re: Park Place Park Place currently has 164 customers. At $10/month surcharge, the total yearly amount is approximately $19,000 per year. It will net Nelson Hyatt about $120,000 over 6 years. Of course, no one can predict what revenue the next 6 years will bring in. Robb said the dollar amount the City can start with is $70,000 to $80,000. Nelson said that the bank is ready to buy Park Place for $350,000. Robb said that if the bank offers that much, Nelson should pursue the offer. Nelson is looking to reclaim his old Wastewater Treatment Plant (WWTP) from the County. According to Nelson, it is his, but the County removed it from the site once the lift station was connected to the County force main along U.S. Highway No.l. Nelson Hyatt said that the original WWTP was north of Stratton Avenue (n(;w Barber Street) west of the railroad tracks. Nelson referred to the Press Journal article last Sunday regarding Utilities with specific reference to impact fees. Robb said new customers will pay 100% of impact fees. He also said that if the the City can take over the lift station, the City will not ask the 164 existing customers for impact fees once they resell their mobile homes as the current agreement requires. Nelson Hyatt wants to extend the impact fees grace period from 5 years to possibly 10 years. He said that he could possibly realize $440,00 in reimbursement costs the next six years depending on new connections. In 1988 and 1989, Park Place averaged 40 units per year. Park Place currently has 212 lots that are buildable, 162 are already occupied. Nelson wanted to know what was in store for future lots. Robb said that the City will honor the 5 year impact fee grace period and grandfather in the existing residents. The City will have to pay approximately $100,000 in engineering fees and construction costs to install the force main. There will be no impact fees for existing customers. Nelson was under the impression that the City would pay for the water and sewer line expansion when he develops his next phase of Park Place. Both Robb McClary and Rich Votapka stated that any expansion of development requires the developer to expand the water and sewer systems. The systems, once completed and accepted, are dedicated to the City. The cost of constructing the systems are passed onto the individual homeowner when he/she purchases a home in Park Place. The County never has paid for water and sewer expansion in a new development, neither will the City. Page Three of Three Minutes of April 28, 1993 Meeting Ret Park Place In summary, the City will propose to do the following: 1) Will pay for 2 line extensions - one to the water plant; one to the lift station. 2) Will grandfather in "no impact fees" for the existing 164 customers until 5 years expire in July, 1994. 3) Will offer cash - CASH ERU's or Combination The City will have to pay $100,000 for installation of a force main and $53,000 plus for installation of a water main. The $10.00 per month surcharge will be eliminated. Nelson is looking towards a cash payment and a number of ERU's extended to a time certain. The meeting was adjourned with the understanding that we would meet again at 9:30 AM on Tuesday, May 4, 1993. File: WP Directory/Minutes City of Sebastian 1225 MAIN STREET o SEBASTIAN, FLORIDA 32958 TELEPHONE (407) 589-5330 0 FAX (407) 589-5570 MEMORANDUM DATE: July 12, 1994 TO:s Moore, Assistant Finance Director V Richard Votapka, Utilities Director FROM: Joel L. Koford, City Manager94[i SUBJECT: Attached copy of the "Agreement" I notice the paragraph (6th Whereas) contains the clause "...only the customers in the service area of SYSTEM at the date of this agreement shall be charged ..." Questions: Why are we charging everyone, regardless of when they moved into Park Place? /jmt Attachment A:\M0712MOR. City of Sebastian 1225 MAIN STREET o SEBASTIAN, FLORIDA 32958 TELEPHONE (407) 589-5330 C1 FAX (407) 589-5570 MEMORANDUM DATE July 19, 1994 TO Joel Koford, City Manager FROM Richard Votapka, Utilities Director A ✓ SUBJECT July 11, 1989 Agreement Between Indian River County, Florida and Nelson Hyatt Re: County Take -Over of Utility System - 6th Paragraph on Page 1 below "WITNESSETH" I have read your memo of July 12, 1994, in reference to the above and provide the following explanation to your question, "Why are we charging everyone, regardless of when they moved into Park Place?" This question had been previously raised by several Park Place residents with specific reference to Paragraph 6 which in resolution form reads "WHEREAS, the County agrees to this (the return of Mr. Hyatt's initial capital investment through a surcharge to customers) provided that only the customers in the service area of SYSTEM at the date of this agreement shall be charged for this expense." Several Park Place residents contend that only the customers who resided in the service area on the date the agreement was signed should pay the surcharge. I have discussed this with Rick Torpy in March. The specific details regarding the "Surcharge on Rates" appear on page 4 of the agreement in Section 7. The first sentence reads "COUNTY shall establish a surcharge on water and wastewater rates for customers in the service area as shown on Exhibit "D". Rick Torpy has verbally opined that all Park Place residents pay the surcharge, since the service area as shown on Exhibit "D" includes all of the developed and undeveloped areas of Park Place at the time the agreement was dated. Joel Koford Page Two July 19, 1994 The language in resolution form on Page 1 can wrongfully be misinterpreted to imply that only the customers living in Park Place on the date the agreement was signed would pay the surcharge, no new residents would pay after that date. This simply isn't so. A resident who moves into Park Place starts paying the surcharge immediately on his/her first utility bill. The County always maintained this policy prior to the City of Sebastian taking over the system on May 1, 1993. RBV/avr Attachments (2) Luiz A G R E E M E N T BETWEEN INDIAN RIVER COUNTY, FLORIDA, AND NELSON HYATT RE: COUNTY TAKE-OVER OF UTILITY SYSTEM THIS AGREEMENT, made this 11th day of July 1989, between INDIAN RIVER COUNTY, a political subdivision of the State of Florida, 1800 25th Street, Vero Beach, FL 32960 (COUNTY) and NELSON HYATT (SELLER), whose address is 12505 North A -1-A, Vero Beach, FL 32963 W I T N E S S E T H; WHEREAS, SELLER is the owner of a water and wastewater utility 'system servicing a portion of the City of • Sebastian; and WHEREAS, COUNTY has embarked on a program of providing quality water and wastewater service to as much of Indian River County as is financially feasible; and WHEREAS, as part of this program, the COUNTY has approached SELLER concerning purchasing his utility system; and WHEREAS, SELLER has agreed to this purchase by COUNTY. provided that he will have five years In which to finish hls development, without paying Impact fees, and for those units sold before the end of the five-year period, Impact fees wi I I have to be paid only as those -units are resold; and —a WHEREAS, SELLER would Iike to receive a return of his Initial capital Investment of some 5777,000 used to construct the utility; and —� WHEREAS, the COUNTY agrees to this, 9 provided that only the customers In the service area of SYSTEM at the date of this agreement shall be charged for this expense, NOW, THEREFORE, for and in consideration of the mutual covenants contained hereln as well as other good and valuable consideration, the COUNTY and SELLER agree as follows: —17 i �aK2CVEZ ,1G Z—fir Tom: S. WARRANTY OF TITLE: HOLD HARMLESS: SELLER shall warrant title to all the real and personal property In SYSTEM and shall hold the COUNTY harmless from any and all claims for damages from third parties, and In particular for any claims from LAKE DELORES UTILITIES AND CABLE TELEVISION SYSTEMS, INC, —� 6. IMPACT FEES: After five years from the date of this agreement SELLER shall be obligated to pay impact Fees to the COUNTY, at the rate then current, for each unit which thereafter-requirds a Certificate of Occupancy. Units which have had a Certificate of Occupancy issued to them before five years from the date of this agreement must have an Impact fee paid when that unit is resold, without regard to the five-year SELLER's grace period. At closings on such sales, SELLER or successor in title shall collect the Impact fee and remit it to COUNTY. _a• 7. SURCHARGE ON RATES. COUNTY shall establish a surcharge on water and wastewater rates for customers in the service area as shown on Exhibit "D." The surcharge shall be collected by the COUNTY for ten years only or until $777,000.00 has been paid, whichever comes first, and funds so collected shall be remitted quarterly to SELLER. SELLER agrees that the funds so remitted shall be full satisfaction for SELLER's right to be reimbursed for Its equity in the SYSTEM- The COUNTY surcharge shall be $10 per ERU (equivalent residential unit). 8. CLOSING DATE: The closing shall take place on or before August 1, 1989. IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the date first set forth above. Attest 41 i �� ... GI �+ tL7'.�,,,,. �et Y arton C1e Vt 0 BOARD OF COUNTY COMMISSIONERS INDIAN RIVER COUNTY, FLORIDA By26. _ ary Wheeler Cha i man (SEAL) Mw ft. Ca I ACUa .d I L)il" Anrfan /C �5�-3�26-6� i rv�, i Ir.YL1('f City of Sebastian 1225 MAIN STREET o SEBASTIAN, FLORIDA 32958 TELEPHONE (407) 589-5330 o FAX (407) 589-5570 MEMORANDUM DATE: • August 17, 1994 TO: Marilyn Swichkow, Finance Director Richard Votpaka, Utilities Director FROM: Joel L. Koford, City Manager 9,(v SUBJECT: Impact Fees - Park Place As you know the sewer and water impact fee for Park Place has been an ongoing item of discussion. However, we have been able to obtain a change in "heart" from the County, so the following policy is now in effect, for Park Place only. a. Since impact fees will be held in escrow by the developer (Mr. Hyatt) pending a change to the "Agreement" regarding impact fees for Park Place. b. In the event the County changes their mind, the sewer impact fee will be collected from Mr. Hyatt and remitted to the County. C. Water impact fees are payable to the City and there will be no change in this procedure. In summary, we collect and retain water impact fees and require Mr. Hyatt to hold sewer impact fees. Once the new "Agreement" is finalized, we will change our policy and abide by the new provision. /jmt City of Sebastian 1225 MAIN STREET 11 SEBASTIAN, FLORIDA 32958 TELEPHONE (407) 589-5330 C3 FAX (407) 589-5570 September 19, 1994 Mr. Nelson Hyatt, President Park Place Mobile Home Park 2210 East Lakeview Drive Sebastian, FL 32958 Re: Payment of Impact Fees on Specific Mobile Home Resales in Park Place Dear Mr. Hyatt: As you are aware, the July 11, 1989 County Takeover Agreement between you and Indian River County requires that water and sewer impact fees are to be paid at the time of closing for all resold units. The Finance Department has brought to my attention that there are at least three (3) resold units for which the City has no record of the impact fees being received as follows: 1) 3535 South Derry Drive - former owner, Elizabeth Caldwell, stated that the closing of her resold home took place on July 18, 1994, during which you acted as her agent. 2) 2083 E. Lakeview Drive - former owner, Thomas Cary, sold his home to Ed Vesley on September 12, 1994. 3) 2086 E. Lakeview Drive - former owner, George Fleming, sold his house to Gloria Lipscomb on September 1, 1994. Please advise me as to payment of the impact fees on the above residences as soon as possible. The water impact fee of $1100 must be paid to the City of Sebastian; the sewer impact fee of $2551 must be paid to the City as well but the Finance Department Mr. Nelson Hyatt September 19, 1994 Page 2 of 2 requests that the check be made payable to "Indian River County". Any continuation of the grace period does not negate payment of impact fees for a resold residence. If there are any other resold residences for which impact fees have not yet been paid, please let me know immediately. Thank you. Sincerely, Richard B. Votapka, P.E. Utilities Director cc: Marilyn Swichkow, Finance Director Nancy Veidt, Finance Department RB V/sg City of Sebastian POST OFFICE BOX 780127 ❑ SEBASTIAN, FLORIDA 32978 TELEPHONE (407) 589-5330 ❑ FAX (407) 589-5570 MEMORABDUE DATE: January 23, 1995 T0: Joel Koford, City Manager FROM: Richard B. Votapka, Utilities Director -ESL/ SUBJECT: Change of Ownership of Park Place Mobile Home Park Mr. Joe Morozowski, past Vice President of the Park Place Homeowners' Association, called me this morning to tell me that Nelson Hyatt had recently sold Park Place. Mr. Morozowski said that he had an attorney in Vero Beach review the July 11, 1989 County Takeover Agreement between Indian River County and Nelson Hyatt, with specific regard to the payment of the $10.00 monthly surcharge. The attorney informed Mr. Morozowski that there was no provision in the Agreement which allowed the City to continue collecting the surcharge for a new owner. Based on the attorney's opinion, Mr. Morozowski will not pay the $10.00 surcharge on this month's utility bill. I informed Mr. Morozowski that I would bring this matter to your attention, but unless I received authorization from you, I could not automatically discontinue the collection of the surcharge on a monthly basis. Although the issue is a legal one, I am of the opinion that the Takeover Agreement mandates the City to collect the $10.00 surcharge for Nelson Hyatt regardless of whether or not he sells Park Place. The surcharge is payment to Nelson Hyatt for the improvements he made when he constructed the utility system. I would like your opinion and/or that of our City Attorney on this matter, so that I can contact Joe Morozowski before the due date of his next bill in February. Also, now that Park Place has been sold, will the City now have to negotiate with the new owner to procure the necessary right-of-way for Barber Street? RBV/jw /memo/kafa[dl: OFFICE OF COUNTY ATTORNEY is BOARD OF COUNTY COMMISSIONERS INDIAN RIVER COUNTY `<oRya° 1840 25th Street, Vero Beach, Florida 32960 Telephone: (407) 567-8000, Ext. 424 Suncom: 224-1424 Fax: (407) 770-5095 May 2, 1995 Mr. Nelson Hyatt Park Place 9605 S. U.S. #1 Sebastian, FL 32958 Re: Amended Agreement Dear Mr. Hyatt: CHARLES P. VITUNAC County Allomey WILLIAM 6. COLLINS 11 Deputy County Attorney TERRENCE P. O'RRIEN Ant. County Attorney SHARON PHILLIPS RRENNAN AW. County Attorney Per our phone conversation today, I am enclosing five original agree- ments that we request you execute and then keep one and deliver four originals to the City of Sebastian to be put on their City Council agenda for the May 10 meeting. After their execution of the agreement, the county would like them to keep one and to return the others to the County for presentation to the Board of County Commissioners at their meeting May 16, 1995. After execution by the Board we will ensure that you, the City, and the County each have a completely executed original agreement. I hope this information will be of assistance to you. Thank you. Sincerely yours, COUNTY ATTORNEY'S OFFICE Lea R. Keller, CLA Legal Assistant Re: Lake Delores Utility System AMENDMENT TO AGREEMENT between INDIAN RIVER COUNTY, FLORIDA 1840 25th Street, Vero Beach, FL 32960 (hereinafter COUNTY) and NELSON HYATT 12505 North A -1-A, Vero Beach, FL 32963 (hereinafter HYATT) (Hyatt wag referred in the 1989 Agreement an "Seller") THIS AMENDMENT WITNESSETH THAT: WHEREAS, by agreement dated the 11th day of July, 1989, between COUNTY and HYATT, COUNTY purchased HYATT's utility system for $777,000 to be paid for by a $30.00 per month surcharge on the utility bills of customers served by the system, for ten years or until $777,000 had been collected, whichever came first, and by delaying the obligation of HYATT to pay impact fees for units for five years; and WHEREAS, HYATT has received $60,396.76 from the COUNTY and $39,580.00 from the City of Sebastian toward the purchase price of $777,000.00; and WHEREAS, because of the objections of some residents within the service area to paying a surcharge, the Utilities Department ham negotiated with HYATT for an amendment to the agreement which would cancel this surcharge from the date of this amendment in exchange for extending the time during which HYATT could delay payment of impact fees for three years from the original expiration date; Now, Therefore, for and in consideration of the mutual covenants contained herein as well as other good and valuable consideration, the receipt of which is hereby acknowledged, the COUNTY and HYATT agree that the agreement between the COUNTY and HYATT dated July 11, 1989, a copy of which is attached, is hereby amended am follows: 1. Paragraph 6 - "Impact Fees" is changed to read: AfterIZdE/#Edtd/ftdd/CXd/ddfd/df/CMLd/dejfddEEdC July 11, 1997, SELLEH HYATT or hie successor shall be obligated to pay impact fees to the COUNTY, at the rate then current, for each unit which thereafter requires a Certificate of Occupancy. Unite which have had a Certificate of occupancy issued to them before fl/E/JEdtd/ftdd/CME/ddfd/df/CH16 dgtEEdEdC July 11, 1997, must have an impact fee paid when that unit is resold, without regard to the fLfE{jEdt/dLLLEAId/4tdEE/¢EtLdd July 11, 1997, date. AC/EZdd16ld/dd Immediately after such sales are closed, SELLER HYATT or HYATT's successor in title shall EdZZEEC pay, or collect and pay, the impact fee ddd/fEELC/Lt to COUNTY. On all other closings, nh.. a., -h naw nurchaser of a unit In the Park 2. Paragraph 7 - "Surcharge on Rates" is deleted. (page one of two) IN wITNESS WHEREOF, COUNTY and HYATT have entered into this amendment on this day of Attest: Jeffrey K. Barton, Clerk sign witness printed name: sign witness printed name: Attest: Kath�Halloran, City Clerk Attachment: Agreement of 7/11/89 1995. INDIAN RIVER COUNTY, FLORIDA by Its Board of County Commissioners By Kenneth R. Hecht, Chairmen HY7i Nelson Hya CITY OF SEBASTIA N, FLORIDA By� Arthur Firtion, Mayor City of Sebastian 1225 MAIN STREET 13 SEBASTIAN, FLORIDA 32958 TELEPHONE (407) 589-5330 o FAX (407) 589-5570 M E M O R A N D U M DATE: May 16, 1995 TO: Customer Service Representatives Daryl Thompson and Nancy Veidt FROM: Richard Votapka, Public Works/Utilities Director RE: Cancellation of the $10 Surcharge for all Park Place Water/Sewer Customers This memo is follow-up to my verbal communique last week that the $10 monthly surcharge billed to all Park Place Utility customers will no longer be collected. As per the attached "Amendment to the Park Place Utilities Takeover Agreement", which the City Council approved on May 10, 1995, the $10 surcharge has been cancelled forevermore. CC: Joel Haniford, Finance Director surchge2 City of Sebastian 1225 MAIN STREET o SEBASTIAN, FLORIDA 32958 TELEPHONE (407) 589-5330 o FAX (407) 589-5570 FAX TRANSMITTAL SHEET FAX # — -3 - 111D )9 DELIVER TO: / / �/ Zol ////1 S FROM: ) f GYl VO—T�q / A56 DATE: S- 6 - / S TIME SENT: TOTAL NUMBER OF PAGES (INCLUDING COVER SHEET) RE: ;p"qx 41 / /�' C L' A v /V IF YOU DO NOT RECEIVE ALL PAGES, PLEASE CALL (407) 589-5330 City of Sebastian 1225 MAIN STREET ii SEBASTIAN, FLORIDA 32958 TELEPHONE (407) 589-5330 11 FAX (407) 589-5570 M E M O R A N D U M DATE: May 15, 1995 TO: Tim Williams, Asst. City Attorney FROM: Richard Votapka, Public Works Director Rev RE: $10 Surcharge to Park Place Water/Sewer Customers I have been requested by the City Manager and City Finance Director to request your opinion on resolving the issue of unpaid surcharges. The $10 surcharge per month is only applicable to Park Place residents. On July 11, 1989, Nelson Hyatt and Indian River County entered into an agreement for the "County Take-over" of the Park Place Utility System. As a condition of the agreement, the County established a surcharge of $10 per customer per month to pay for the total assets of $777,000 Mr. Hyatt had invested in the construction of the water and sewer systems. The County collected the $10 surcharge from each water/sewer customer in Park Place on a monthly basis and remitted the amount collected to Nelson Hyatt on a quarterly basis. When the operation and ownership of the Park Place system was transferred to the City on May 1, 1993, the City assumed the responsibility of collecting the $10 surcharge and remitting it to Nelson Hyatt. Although the residents of Park Place have always maintained an extreme dislike for the $10 surcharge, the majority of customers continue to pay it. However, approximately four (4) months ago, several customers decided that they would not pay the surcharge. On Wednesday, May 10th, the City Council approved an Amendment to the July 11, 1989 Takeover Agreement which cancelled the surcharge entirely. Therefore, the City will no longer bill the customers the $10 surcharge on any future Utility Bills. The issue which still needs to be resolved concerns those customers who refused to pay the surcharge. Should the City write off the non-payment as a "Bad Debt" expense or continue to bill them for non-payment in which case deliquent charges and interest will be assessed? Page 2 of 2 Park Place Surcharge In my opinion, all customers should pay the surcharge through the month of April in terms of the Agreement since the surcharge was in full force and effect until it was cancelled by City Council action on May 10th. I see no reason why customers who haven't paid should be granted the liberty of a "free ride" while the majority of customers dutifully fulfilled their obligation by paying the surcharge on a monthly basis. Please advise me as soon as possible with a written reply. If you have any questions, call me at 589-5490. surchge Pe: Lake Delores Utility System AMENOHENT TO AGREEMENT between INDIAN RIVER COUNTY, FLORIDA 1840 25th Street, Vero Beach, FL 32960 (hereinafter COUNTY) and NELSON HYATT 12505 North A -1-A, Vero Beach, FL 32963 (hereinafter HYATT) (fiyatt was referred in the 1989 Agreement as "Seller") THIS AMENDMENT WITNESSETH THATI WHEREAS, by agreement dated the 11th day Of July, 19891 between COUNTY and HYATT, r.01111TY purchased HYATT's utility system for $777,000 to be paid for by a $111.00 per month surcharge on the utility bills of customers served by the ayntem, for ten years or until $777,000 had been collected, whichever came first, and by delaying the obligation of HYATT to pay impact fees for units for five yenrel and WHEREAS, HYATT has received $60,396.76 from the COUNTY and $39,580.00 from the rity of Sebastian toward the purchase price of $777,000.001 and H WHEREAS, because of the objections of some residents within the service area to paying a surcharge, the Utilities Department has negotiated with HYATT for an amendment to the agreement which would cancel this surcharge from the date of this amendment in exchange for extending the time during which HYATT could delay payment of Impact fees for three years from the original expirntlon date; Now, Therefore, for and in consideration of the mutual covenants contained herein as well as other good and valuable consideration, the receipt of which is hereby acknowledged, the COUNTY and HYATT agree that the agreement between the COUNTY and HYATT dated July 11, 1989, a copy of which in attached, is hereby amended NO follows' 1. Paragraph 6 - "Impact Fees" in changed to reeds After tt ec ltd6//dlfA/ff66/CMd/dlCd/6f/CNL!/l4f dddddC July 11 1997, AMEX HYATT or his successor shall be obligated to pay impact fees to the cOONTY, at the rate then current, for each unit which thereafter requires a Certificate of Occupancy. Unite which have had a certificate of occupancy Issued to them before fL><d/�dlfd/fidd/CMd/dlCd/6L/CALd !41!1dddC July 11 1991, must have an impact fee paid when that unit In resold, without regard to the Lff6f0lf/IELEEAlE/gfldd/�df16d July I1, 1997, date. AC/d16dIA441 66 Immediately after such sales are closed, lCCCCA HYATT or HYATT-9 successor in GLtle shall 66L4ect pay or collect and a 1 the impact Cee !6d/f6dLC/LC to COUNTY. On all other closing e, ...w .. n,.rchaeer of a unit in the Park 2. parngraph 7 - "Surcharge on Rates" is deleted. (page one of two) IN WTTNESS WHEREOF, COUNTY and HYATT have entered into this amendment on this _ day of Attest! Jeffrey R. Bacton, Clerk sign Witness printed names sign witness printed name! Attest. Kathryn OC H—alloren, City Clerk Attachment! Agreement of 7/11/09 1995. INDIAN RIVER COUNTY, FLORIDA by its Board of County Commissioners By Kenneth R. Maeht, Chelrmen BYtyI Nelson Hye CITY OF SEBASTIAN, FLORIDA By .L Arthur FLrtion, Hay— A G R E E M E N T BETWEEN INDIAN RIVER COUNTY, FLORIDA, AND NELSON HYATT RE: COUNTY TAKE-OVER OF UTILITY SYSTEM THIS AGREEMENT, made this 11th day of July_ 1989, between INDIAN RIVER COUNTY, a political subdivision of the State of Florida, 1840 25th Street, Vero Beach, FL 32960 (COUNTY) and NELSON HYATT (SELLER), whose address Is 12505 North A -1-A, Vero Beach, FL 32963 W I T N E S S E T H WHEREAS, SELLER Is the owner of a water and wastewater utility system servicing a portion of the City of Sebastian; and WHEREAS, COUNTY has embarked on a program of providing quality water and wastewater service to as much of Indian River County as Is financially feasible; and WHEREAS, as part of this program, the COUNTY has approached SELLER concerning purchasing his utility system; and WHEREAS, SELLER has agreed to this purchase by COUNTY, provided that he will have five years in which to finish his development., without paying Impact fees, and for those units sold before the end of the five-year period, Impact fees will have to be paid only as those units are resold; and WHEREAS, SELLER would like to receive a return of his initial capital Investment of some $777,000 used to construct the utility; and WHEREAS, the COUNTY agrees to this, provided that only the customers in the service area of SYSTEM at the date of this agreement shall be charged for this expense, NOW, THEREFORE, for and In consideration of the mutual covenants contained herein as well as other good and _valuable consideration, the COUNTY and SELLER agree as follows: GX I -11(31T ,.A 1 �gycFOVEfr. AG2r'EHBv; �. �L. :.ov•rr. 1. EXHIBITS TO BE PART OF THIS AGREEMENT: Attached to this agreement are certain exhibits which shall be considered to be integral parts of this agreement as much as If they were written In this agree E� ��i';L "�•` This list of exhibits is as follows: s4, Exhibit "A" - Description of all per No i— property, customer deposits, and fixtures included In of SYSTEM. �- Exhibit "B" - Legal description of real - property (PROPERTY) to be sold to COUNTY. Exhibit "C" - Description of all easements to be transferred to COUNTY. Exhibit "D" - Service area of utility SYSTEM. 2. DEFINITIONS: A. SYSTEM - For convenience, the term `<F"lif�e�igMite "�Fteyiy�S;t1l�;s'bii3TnEarc W�l�or in whhiic-h' It has a legal Interest Rte ala!'+��f(�Lil lO 34A414,'ip which are being purchased by COUNTY and which Include the following: (1) The Items of Inventory described in i Exhibit "A." �gG'Fjr ! eel ° b9 l9 t! awned by` SELLER 77�7— r_,�RT,1 d Tt ba ll"buIIdifig hd'Imprevattiefff!"""� 'SELLER this 1 lPsy 0op 61 o.vsres L3: 1'LM' ^ mf) E" lIt12 to Al l`e `yald'�ael' pt 4!!!!`TYfBfi�if9Fe e:31`is"P; ; ,i (3) Ail easements, licenses, rights of way, and consents owned by SELLER for the construction, operation, and maintenance of the SYSTEM, Including the easements specifically set forth on Exhibit "C." (4) All water and wastewater plants, lines and facilities of every kind and description whatsoever, including collection mains, transmission mains, effluent distribution pipes, lift stations or facilities, valves, service connections, and all other physical facilities and property Installations in use in connection with the SYSTEM. (5) A11 of SELLER's rights of every character whatsoever and all certificates, Imnunitles, privileges, permits, licenses, easements, consents, grants, ordinances, leaseholds, and rights of way, and all rights to construct, maintain, and operate plants and systems for the collection of sewage and promises of water and every right of every character whatever In connection therewith; and all renewals, extensions, additions, or modifications of any of the foregoing; (6) Copies of all past and current customer records, books, prints, plans, engineering reports, surveys, specifications, shop drawings, equipment manuals and other Information required by COUNTY which are in possession of SELLER or Its agents on the closing date pertalning to the operation of the system, (7) A set of record drawings, Including as-bulit drawings, If available, showing all facilities of the utility system, Including structural, mechanical, and electrical detal Is. Such drawings shall also Include any original tracing, sepias, or other reproducible material where same Is In possession of SELLER. B. EXCLUDED ASSETS - Cash or bank accounts of SELLER which are SELLER's sole property and which are not subject to refund to customers or which have no application to specific purposes or uses of the SYSTEM. 4. RIGHT OF FIRST REFUSAL: COUNTY agrees to deed the real property described on Exhibit "B" to SELLER when the COUNTY no longer uses the property In Its utility operation or at the end of ten years from the date of this agreement, whichever comes first; provided that If at the end of ten years the COUNTY stl II needs the property, the COUNTY shall pay the fair market value of the property to SELLER, and SELLER shall have no further claim against the property. 3 rZ S. WARRANTY OF TITLE; HOLD HARMLESS: SELLER shall warrant title to all the real and personal property In SYSTEM and shall hold the COUNTY harmless from any and all claims for damages from third parties, and In particular for any claims from LAKE DELORES UTILITIES AND CABLE TELEVISION SYSTEMS, INC. 6. IMPACT FEES; After five years from the date of this agreement SELLER shall be obligated to pay Impact fees to the COUNTY, at the rate then current, for each unit which thereafter requlyds a Certificate of Occupancy. Units which have had a Certificate of Occupancy Issued to them before five years from the date of this agreement must have an Impact fee paid when that unit is resold, without regard to the five-year SELLER's grace period. At closings on such sales, SELLER or successor In title shall collect the Impact fee and remit It to COUNTY, 7. SURCHARGE ON RATES: COUNTY shall establish a surcharge on water and wastewater rates for customers In the service area as shown on Exhibit "D." The surcharge shall be collected by the COUNTY for ten years only or until $777,000.00 has been paid, whichever comes first, and funds so collected shall be remitted quarterly to SELLER. SELLER agrees that the funds so remitted shall be full satisfaction i for SELLER's right to be reimbursed for Its equity in the SYSTEM. The COUNTY surcharge shall be $10 per ERU (equivalent residential unit). S. CLOSING DATE: The closing shall take place on or before August I, 1989. IN WITNESS WHEREOF, the parties hereto have set their hands and seals on the date first set forth above. Attest e Y a Cler t rjhBBe-a�rott�oaLd. 0 BOARD OF COUNTY COMMISSIONERS INDIAN RIVER COUNTY, FLORIDA By �a ry ee er Ch ai man (SEAL) NPn n..n Ci Abu mee Uale A anon jC S -3o -6f_ i a -i. -_2 0 �a.e� , -- W1 gess—" rNi tness to Ne I son Hya Attachments: Exhibits "A," "B," "C," and "D" Exhibit "A" states "No inventory is included with the purchase" Exhibit "B" Legal Description of Real Property to be -sold to County (The County did not Provide any although a deed for the Park Place Water Treatment Plant was furnished to us) Exhibit "C" Description of all easenents to be transferred to the County. Grant of Easenent dated June 15, 1989 between Nelson Hyatt and Indian River County which is l0' in width for all utilities land described in Exhibit "A" 10' within Stratton Ave. (aka Barber Street) to the sewer plant,and lift station and Exhibit "A-1" which describes the area of Park Place Exhibit "D" Service area of the utility systen - complete legal description of Park Place (fka The Village of lake Dolores) PAGE FIVE CF" FIVE 5/0]./98. T fnya'ao. --l-3 Re: Lake Delores Utility System AMENDMENT TO AGREEMENT between INDIAN RIVER COUNTY, FLORIDA 1840 25th Street, Vero Beach, FL 32960 (hereinafter COUNTY) and NELSON HYATT 12505 North A -1-A, Vero Beach, FL 32963 (hereinafter HYATT) (Hyatt was referred in the 1989 Agreement as "Seller") THIS AMENDMENT WITNESSETH THAT: WHEREAS, by agreement dated the 11th day of July, 1989, between COUNTY and HYATT, COUNTY purchased HYATT's utility system for $777,000 to be paid for by a $10.00 per month surcharge on the utility bills of customers served by the system, for ten years or until $777,000 had been collected, whichever came first, and by delaying the obligation of HYATT to pay impact fees for units for five years; and WHEREAS, HYATT has received $60,396.76 from the COUNTY and $39,580.00 from the City of Sebastian toward the purchase price of $777,000.00; and WHEREAS, because of the objections of some residents within the service area to paying a surcharge, the Utilities Department has negotiated with HYATT for an amendment to the agreement which would cancel this surcharge from the date of this amendment in exchange for extending the time during which HYATT could delay payment of impact fees for three years from the original expiration date; Now, Therefore, for and in consideration of the mutual covenants contained herein as well as other good and valuable consideration, the receipt of which is hereby acknowledged, the COUNTY and HYATT agree that the agreement between the COUNTY and HYATT dated July 11, 1989, a copy of which is attached, is hereby amended as follows: 1. Paragraph 6 - "Impact Fees" is changed to read: After ff��/��t(f�/i�Ed:h/{S�/a1¢k`�/�1`/k�Hi�/�a�z`��tfik�iC July 11, 1997, $9=99 HYATT or his successor shall be obligated to pay impact fees to the COUNTY, at the rate then current, for each unit which thereafter requires a Certificate of Occupancy. Units which have had a Certificate of Occupancy issued to them before ff�S�/¢6�t�/ff�d/C8�/e1dP�/bf/iKffi A¢ 0416:0H July 11, 1997, must have an impact fee paid when that unit is resold, without regard to the July 11, 1997, date. Xi/i6169tlijk/bA Immediately after such sales are closed, $1=91( HYATT or HYATT's successor in title shall ¢bff6Ei pay, or collect and pay, the impact fee A44HORWIff to COUNTY. On all other closings, HYATT shall recuire that each new purchaser of a unit in the Park execute a disclosure form acknowledging that the new purchaser has been when the 2. Paragraph 7 - "Surcharge on Rates" is deleted. (page one of two) IN WITNESS WHEREOF, COUNTY and HYATT have entered into this amendment on this 16 � day of 1Ld , 1995. INDIAN RIVER COUNTY, FLORIDA Attest: by its Board of County Commissioners / ByIZ-4,1wee,W46hairman (d r K. ,Bart erk a neth R. c r�r D.C.. sign Witness printed name: sign Witness printed name: Attest: Kathryn 'Halloran, City Clerk Attachment: Agreement of 7/11/89 HYATT: / elson Hyatt CITY OF SEBASTIAN, FLORIDA !� / i57 - M' Indian River Cu Aggroved Dale Admin. Legal Budge) _ Dept. Risk Mgr. City of Sebastian 1225 MAIN STREET 0 SEBASTIAN, FLORIDA 32958 TELEPHONE (407) 589-5330 0 FAX (407) 589-5570 M E M O R A N D U M DATE: April 27, 1995 TO: Nancy Veidt, Customer Service Representative FROM: Richard Votapka, Public Works Director �18✓ RE: $10 Surcharge for Park Place Water/Sewer Customers As per your request, I asked City Manager Joel Koford if the City should discontinue billing Park Place Utility customers the monthly $10 surcharge at this time in view of the recent agreement between Nelson Hyatt and Indian River County to eliminate the surcharge entirely. Mr. Koford said to continue billing the surcharge because the City of Sebastian has not received any official communique from Indian River County directing the City to cease charging the surcharge. He said that to date the City has not been informed that the ratification of the agreement was accomplished by the Indian River County Board of County Commissioners. cc: Joel Haniford, Finance Director Daryl Thompson, Customer Service Representative surchar MEMORANDUM TO: Daryl Thompson, Customer Service FROM: Nancy Veidt, Computer Operator DATE: March 30, 1995 SUBJ: Park Place Surcharge Joel Koford, City Manager, stopped me at City Hall yesterday and informed me that we cannot charge a penalty on non-payment of the Park Place surcharge. The utilities software is set up so that any payment automatically applies to the oldest charges. Therefore, if the surcharge is the oldest outstanding charge, the software will apply the payment to the surcharge and leave current charges for water and/or sewer as showing outstanding. When customers are not paying the surcharge we must enter a "manual payment" and manually apply the payment to the current billing. This will prevent the software from automatically applying payments to the outstanding surcharge charges. cc: Rich Votapka, Utilities Director A,5v Joel Haniford, Finance Director age 1 Joe Morozowski :,:Sebastian City Council Joseph Morozowski 3426 Heatherway Ln. Sebastian,FL 32958 February 20,1995 RECEIVEC) FEB 1995 CITY CL HK`j OFFICE copies:J.Koford-City Manager K.O'Halloron-City Clerk `�R.Votapka-Utiljties Director City Attorney jbject:Park Place Utilities Surcharge. jestions raised as to the legality of the Park Place surcharge remain Den and unanswered as of this writing. ie Sebastian City Council directed the then City Attoney,Mr.Nash on =cember 1,1993 to investigate the legality of the Park Place agreement id determine if the surcharge was a valid pass through to the residents. ifteen months later,we are still waiting for an answer.Although many Duncil members and Mr.Koford have been asked to intervene to get a written iswer,no answers have been forecoming. Patience is now run out. -mo dated December 27,1993-R.Votapka to K.O'Halloron Runty take over of utility system -Exhibit "A" dated July 11,1989 3ragraph 7 states:Quote"only the customers in the service area of ,-stem .it the date of this agreement shall be charged for this expense" -iquote.The expense referred to is the $777,000.00 purchase price and ie $10.00 monthly surcharge. 31m Lake Club draws water from the Park Place plant but pays NO surcharge. ien Sebastian Water utility is questioned as to this discrepancy,their iswer is Palm Lake Club wasn't in the system on July 11,1989 the date F the agreement and are therefore exempt. all neither was I on the system on July 11,1989,my occupancy started Dril 1993,as many as 75 other residents have Certificates of Occuupancy s ued later than July 11,1989. It appears we have a double standard in oplying this surcharge. Dok 77 Pages 287 thru 292 Public Hearing -Purchase of Lakes of Delores Lilities your attention to question of statute 125.3401.Wrong one?? -,ogle of Park Place were never notified of this action properly ie is its Homeowners Association. -free different names and dates were used used in newpaper notices. Jviertised as Lakes of Delores Utility System (Public Notice) axt page Book 77 -Page 288 it is now called Nelson Hyatt Water & Sewer tilities serving Park Place Mobil Home Park,formerly Lake of Delores tility system.If formerly and advertised as Lakes of Delores Utility vstem how were people to know what was being sold? emo:August 4,1994 Votapka to Koford Paragragh 1 jote"the opinion never received from Torphy questioning validity F surcharge properly noticed & under appropriate statue. jge 2 Joe Morozowski imerous times I get the answer,the county is responsible.Letter of �cember 13,1993 Vitunac to O'Hallorn under(County-City)agreement, =quested by Frank Oberbeck.Quote"the county assigns and the city assumes 11 county's rights,duties and obligations under this agreement."unquote. re agreement referred to is the April 21,1992 agreement. =mo December 27,1993 Votapka-O'Halloran -Page 2 jote"thu county has in its possession $171,000.00 worth of assets -om the Park Place system.Why hasn't Sebastian collected those funds id given credit to Park Place" unquote jgc 3:City acts as a collection agency,at no charge,for a private Dntractor. cemberl,1993 Mrs.Swichkow stated at City Council meeting it was illegal Jr her to collect and remit these funds under a Florida State statue,and id would only do so if directed by the City Council. can't get any answers to this.City money and time is being spent to Jminister this service for a non-resident developer,while the residents 3y for a dubious surcharge.Cost to the taxpayer is what? Dok 77 Page 291 Paragraph 4 states.Quote "Any expansion of the system iat is done to accommodate those other 600 lots will be done at the eveloper's expense."unquote.Paragraph 5 Quote"if they want to add istomers they would have to do the line expansion themselves."unquote. D me this means no surcharge for the people in the system after my 11,1989. Dok 77 Page 280 Paragraph 3 states-Quote"this means that the owner Duld get only $10.00"unquote.They are using the term owner -seller iterchangably. •iis brings up the fact that Park Place was sold prior to February 1,1995, ;ted recorded with the county is clear with purchase of the existing Dme sites,with Nelson Hyatt keeping the undeveloped portions of the roperty.as stated above the OWNER collects the surcharge.Not being ransferred or sold cannot be not stipulated in any agreement.Mr.Hyatt s no longer the OWNER therefore the surcharge shold be eliminated nmediately. i January 23,1995 I notified Richard Votapka of the above fact and dvised him I would not pay the surcharge as it didn't exist anymore,as F the date the park was sold.He requested Mr.Koford to get an opinion _)r' him from the city attorney.To date there has been no reply. paid my water 8 sewer bill on February 16,1995 less the surcharge and was advised I would be charged a $5.00 late fee for omitting the ,ircharge.I believe,l paid my utility bill in full minus the now invalid urcharge. age 3 Joe Morozowski t this point.! and I believe the Park Place residents are not looking or a refund from the city for the surcharge(s) paid.But only for it to o away NOW. We have been advised by the attorney for the county uote " one stroke of the pen,and everyone lives happy"unquote n early written response to the above questions by Sebastian legal ouncil would be greatly appreciated to finalize this long standing roblem. Respectfully: �&owsk i Paqe 1 Joe Morozowski ctiGv�hdao4% kef..,. 3/Zy/9S - �JO, M3✓ �ti�h�� ^o Joseph Morozowski ;i 3426 Heatherway Ln. R Sebastian,FL 32958 e March 21,1995 Mr.Joel Koford Sebastian City Manager City of Sebastian 1225 Main Street Sebastian,FL 32958 Subjedt:Park Place Utilities Surcharge. Questions raised as to the legality of the Park Place surcharge remain open and unanswered,our attempts to have this on going problem addressed at the City Council meeting of February 22,1995 proved fruitless. The Sebastian City Council directed City Attoney,Mr.Nash on December 1,1993 to investigate the legality of the Park Place agreement and determine if the surcharge was a valid pass through to the residents. Fifteen months later,we are still waiting for an answer.Although many current and past council members and you have been asked to intervene to get a written answer,no answers,from Mr.Nash,have been forecoming. The only information we obtained at the February 22,1994 city council meeting was for a workshop meeting tape wherein Charles L.Nash,the then city attorney advised he would discuss the legality of the surcharge with a Mr.McCloud in February 1994,and get back to the City Council. I guess you,I,City Council,and 425 residents of Park Place had better not hold our breath,an longer,awaiting Mr.Nash response. The purpose of this letter is to request your HELP Please have your staff review the documentation previously submitted, and now outlined in detail in this letter. Also I would appreciate your following up Mr.Nash for his promised and I assume paid for investigation. Finally,I and the 424 other residents of Park Place would appreciate having this subject added to the agenda for the next scheduled City Council meeting. The following are documented references,and items brought to the City Council's attention at the February 22,1995 meeting. Memo dated December 27,1993-R.Votapka to K.O'Halloron County take over of utility system -Exhibit "A" dated July 11,1989 Paragraph 7 states:Quote"only the customers in the service area of system at the date of this agreement shall be charged for this expense" unquote.The expense referred to is the $777,000.00 purchase price and the $10.00 monthly surcharge. Page 2 Joe Morozowski Palm Lake Club draws water from the Park Place plant but pays NO surcharge. When Sebastian Water utility is questioned as to this discrepancy,their answer is Palm Lake Club wasn't in the system on July 11,1989 the date of the agreement and are therefore exempt. Well neither was I on the system on July 11,1989,my occupancy started April 1993,as many as 75 other residents have Certificates of Occuupancy issued later than July 11,1989. It appears we have a double standard in applying this surcharge. Book 77 Pages 287 thru 292 Public Hearing -Purchase of Lakes of Delores Utilities your attention to question of statue 125.3401.Wrorig one, should have been statue 180.XXX. People of Park Place were never notified of this action properly ie via its Homeowners Association. Three different names and dates were used in newpaper notices. Advertised as Lakes of Delores Utility System (Public Notice) Next page Book 77 -Page 288 it is now called Nelson Hyatt Water 8 Sewer Utilities serving Park Place Mobil Home Park,formerly Lake of Delores utility system.IF formerly and advertised as Lakes of Delores Utility System how were people to know what was being sold? Memo:August 4,1994 Votapka to Koford Paragragh 1 Quote"the opinion never received from Torphy questioning validity of surcharge properly noticed 8 under appropriate statue. Numerous times I get the answer,the county Is responsible.Letter of December 13,1993 Vitunac to O'Hallorn under(County-City)agreement, requested by Frank Oberbeck.Quote"the county assigns and the city assumes all county's rights,duties and obligations under this agreement."unquote. The agreement referred to is the April 21,1992 agreement. Memo December 27,1993 Votapka-O'Halloran -Page 2 Quote"the county has in its possession $171,000.00 worth of assets from the Park Place system.Why hasn't Sebastian collected those funds and given credit to Park Place" unquote Page 3:City acts as a collection agency,at no charge,for a private contractor. Decemberl,1993 Mrs.Swichkow, stated at City Council meeting it was illegal for her to collect and remit these funds under a Florida State statue,and and would only do so if directed by the City Council. I can't get any answers to this.City money and time is being spent to administer this pervice for a non-resident developer,while the residents pay for a dubious surcharge.Cost to the taxpayer is what? Page 3 Joe Morozowski Book 77 Page 291 Paragraph 4 states.Quote "Any expansion of the system that is done to accommodate those other 600 lots will be done at the developer's expense."unquote.Paragraph 5 Quote"if they want to add customers they would have to do the line expansion themselves."unquote. To me this means no surcharge for the people in the system after July 11,1989. Book 77 Page 280 Paragraph 3 states-Quote"this means that the owner would get only $10.00"unquote.They are using the term owner -seller interchangably. This brings up the fact that Park Place was sold prior to February 1,1995, deed recorded with the county is clear with purchase of the existing home sites,with Nelson Hyatt keeping the undeveloped portions of the property.as stated above the OWNER collects the surcharge.Not being transferred or sold cannot be not stipulated in any agreement.Mr.Hyatt is no longer the OWNER therefore the surcharge should be eliminated immediately. On January 23,1995 I notified Richard Votapka of the above fact and advised him I would not pay the surcharge as it didn't exist anymore,as of the date the park was sold.He requested Mr.Koford to get an opinion for him from the city attorney.To date there has been no reply. I paid my water & sewer bill on February 16,1995 less the surcharge and I was advised I would be charged a $5.00 late fee for omitting the surcharge.I believe,I paid my utility bill in full minus the now invalid surcharge. At this point,I and 1 believe the Park Place residents are not looking for a refund from the city for the surcharge(s) paid.But only for it to go away NOW. We have been advised by the attorney for the county Quote " one stroke of the pen,and everyone lives happy"unquote An early written response to the above questions by Sebastian legal council would be greatly appreciated to finalize this long standing problem. Respectfully; ►V Kd4� lorozowski cc: K.O'Halloron-City Clerk R.Votapka-Utilities Director Mr.McClevland-City Attorney Mr.Art Firtion-Mayor Mrs.Carol Corum-Vice Mayor Mrs.Louise Cartwright -Councilwoman Mrs.Norma Damp -Councilwoman Mr.Ray Halloran -Councilman