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The County must agree to comply with the requirements of Form FmHA 400-1, Equal Opportunity Agreement, and Form FmI1A 400-4, Nondiscrimination Agree- ment. These agreements must be approved by the governing body and executed before loan is closed. The County must provide for review and approval by the FmHA, before con- struction begins, a positive program to encourage connections by all users as soon as service is available. The program shall include: 1. An agressive information program to be carried out during the construc- tion period. 2. Positive steps to assure.that commercial installation services for water users will be available. If the County employs a private utility servicing company to operate and maintain the facilities, FmHA must approve the contract for this service before construction begins. FmHA acknowledges prior approval of the water purchase contract between the County and the City of Vero Beach. FmHA grant funds will be used after FmHA loan funds have been expended. The County will purchase all of the utility related assets of Urban Develop- ment Utilities, Inc. for $75,000.00, which assets will be conveyed free and clear of all encumbrances, mortgages, security agreements, liens, claims and other obligations. The purchase shall take place prior to the FmHA loan and grant being consummated but after satisfactory commitments have been issued to the County from FmHA. The County agrees to use County funds to purchase the utility related assets of Urban Development Utilities, Inc. The assets shall include but not be limited to land, distribution collection lines, pumps, plants and all other appurtenances and improvements related to Urban Development Utilities, Inc. sewer and water system. The County must execute Form FmHA 442-31, Association Water and Sewer Grant Agreement. If the Association decides to accept FmHA services under the above conditions, we will proceed to take the necessary steps to process the loan. ,,�-C74 u Supervisor Enclosures cc: DD IV State Director RFK 31 PAN 11 SEP 13 1977