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opinion of the County Staff an expansion of the water plant and well field was <br />required. As there is additional FmHA 5% water monies, it was felt it would be <br />appropriate to expand the application to include a plant expansion. A 1.25 MGD <br />expansion of the treatment equipment combination of equipment and storage expan- <br />sions could be accomplished with the remaining monies. FmHA was, again, contacted <br />for concurrence with an expanded loan application to utilize all remaining water <br />loan monies. <br />Furthermore, FmHA stated verbally the expanded application would not delay <br />the issuance of a "Letter of Conditions" for loan monies to purchase Ixora and <br />Treasure Coast Utilities. FmHA indicated approximately three weeks would be <br />required to issue the Letter of Conditions. <br />Alternatives and Analysis <br />The alternatives available for utilization of loan funds to purchase and <br />make improvements to Treasure Coast and Ixora Utilities are as follows: <br />Alternative 1 <br />Submit application for purchase and improvements for Treasure Coast <br />and Ixora Utilities only. <br />Advantages - A. Accomplished Board's original intent to acquire <br />the Utilities. <br />Disadvantages - A. Will require separate submittal of another <br />application to expand the water plant. <br />B. Will require separate bond validation including <br />expenses. <br />Alternative 2 <br />Submit expanded application to include $426,000 short fall and the <br />plant expansion. <br />Advantages - A. Minimizes bond validation time requirements for <br />separate issues and minimizes bond expenses. <br />B. Will allow for a timely increase in plant capacity <br />for South Beach and other reserve connections. <br />C. Will not delay application process or "Letter of <br />Conditions". <br />Disadvantages - A. Requires a commitment to repay subsequent loans. <br />Recommendation & Funding <br />It is the recommendation of County Staff and consulting engineer Alternative <br />2 be selected to acquire the necessary funds to meet the County's commitment to <br />provide water service and to acquire Treasure Coast and Ixora Utilities. <br />Further, enclosed for the Board's review is a draft letter from Sverdruo & <br />Parcel and Associates, Inc. to Mr. Charlie B. Hudnell with FmHA. Attached to the <br />letter is an expanded application complete with supporting data which justifies <br />the request for additional water monies. <br />Funding for the improvements outlined would. be from FmHA loan funds. <br />Ultimate repayment of permanent water revenue bonds would be from the sale <br />of water and sewer service. Refer to Attachment III for the Economic <br />Feasibility Analysis. <br />Also, it is recommended the County Administrator be authorized to sign <br />the application. Furthermore, it is recommended our consultant submit and <br />follow-up on the attached application to ensure an expedient processing of <br />the application. <br />MAR 3 1982 49 9 PAE s�.'' <br />