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At the point in time in which it was determined additional funds were apparently required to implement the project, a meeting was requested by the Joint Venture with the County Financing Staff, County Utilities Director and Interim Finance Consultant. All staff members concurred additional funds were in fact required. In addition, the meeting generated three options available to Indian, River County for implementing this project. The following will present the three options developed by the -County's Consulting Engineer, Interim.Finance Consultant, County Finance Staff and County Utilities Director to implement this project and keep it on schedule.` OPTION 1 Consider allowing the Deductive Alternates of $145,739 for Contracts Part I, II and III. Utilize the existing residual of impact fees collected by the Utilities Department. The residual impact fees are approximately $110,000. Eliminate the contingency -of $175,000. The actual remaining required funds less contingency would be $250,808.81. The use of impact fees and Deductive Alternates would yield $255,739 leaving $4,930.19 in the project fund. Drawbacks to Option 1 a. Deductive Alternates will require additional expenses in the future expansion of the facilities. b. The project fund will not have a contingency fund during construction. OPTION 2 The County could put up $425,808.81 in cash from non-advalorem tax monies to secure the total project financing. Drawback to Option 2. a. Requires use of cash reserves which may not be immediately available. OPTION 3 The County could pledge legally available, non-advalorem tax monies in the amount of $425,808.81 to secure the project financing. After award of Contracts, additional revenue bonds could be validated to replace the cash pledge. Drawback to Option 3 a.. Validation of additional Revenue Bonds. However, not consid- ered a major drawback. After careful review of the options available, it was the unified recommendation of the parties previously described, Option 3 was the best option. In an effort to provide complete details of Option 3, the following information is presented: The $500,000 cash presently being used to secure the $450,000 loan for the test well program could be used as a cash pledge for the additional funds required to implement the project. After award of Contracts, begin making arrangements to validate additional water revenue bonds, possibly using the remaining $1,959,000 in outstanding FmHA loan commitments as an ultimate source of funds for the additional funds required. 191991 g BaQx 47. PAcE812