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AUG 101977 4m RESOLUTION N0, 77-82 WHEREAS, for a number of years URBAN DEVELOPMENT UTILITIES, INC., hereinafter referred to as "U..,D.U.", has operated a private `Sewer -and Water Franchise in violation of State and Federal Regulations; and . WHEREAS, currently U.D.U. is unable to provide palatable water in its Franchise area due to poor source wells, inadequate treatment facilities and deteriorated distribution lines; and WHEREAS, the sewer treatment plant and necessary collection dines are presently in such a deplorable state of disrepair that effluent remains uncollected and untreated for lengthy periods of time; and WHEREAS, the Farmers Home Administration originally funded the construction of both water and sewer systems and has kept :close ties with U.D.U. since the facilities were completed; and WHEREAS, despite repeated requests from state and -county government, the Farmers Home Administration and U.D.U. have failed to up -grade the water and sewer facilities to acceptable standards; and WHEREAS, on January 16, 1976 Indian River County entered into It contract with U.D.U. and Farmers Home Administration, which contract - provided an up -grading of sewer and water services to the U.D-.U. franchise area; and WHEREAS, U.D.U.-and Farmers Home Administration have defaulted under the terms of the January 16, 1976 contract and it is clear to the Board of County Commissioners of Indian River County, Florida that U.D.U. and the Farmers Home Administration will not, in the future, perform their obligations under the contract; WHEREAS, there remains an outstanding obligation from U.D.U. to Farmers Home Administration in the amount of approximately FIVE HUNDRED THOUSAND ($500,000.00) DOLLARS, which obligation can never reasonably be retired from the sewer and water revenues received by U.D.U.; and t.•-' t S P . BOOK 30 PAU,c 3