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TO: Chairman and Members DATE: February 25, 1982 FILE: <br />of the Board of <br />County Commissioners of <br />Indian River County <br />SUBJECT: $2,600,000.00 Indian River <br />County, Florida, Water and <br />Sewer Revenue Bonds <br />Series 1982; Farmers Home <br />Loan <br />FROM: Cary M. Brandenburg REFERENCES: <br />County Attorney <br />County staff is currently negotiating with Treasure Coast <br />Utilities, Inc., and Ixora Utilities, Inc. for the acquisition of <br />both the water and sewer systems of each utility. The status of <br />the negotiations are as follows; <br />1. The County Attorney has prepared a draft of a contract <br />for the acquisition of Treasure Coast Utilities (copy <br />attached for your review). The draft has been submitted <br />to and received by Mr. Salter's attorney, Randolph <br />Lipscomb. Mr. Lipscomb will now consult with his client <br />and respond with his concerns and suggested amendments. <br />Mr. Lipscomb has been notified that the County wishes to <br />proceed with this acquisition as soon as possible. The <br />proposed contract; (a) is contingent upon'receipt of a <br />letter of conditions from the Farmers Home Loan <br />Administration, (b) contingent upon obtaining an <br />appropriate consent order from the Department of <br />Environmental'Regulation and (c) the contract provides <br />for closing within sixty days of execution of the <br />document. <br />2. This writer, Commissioner Scurlock and Neil Nelson met <br />with Mr. Bogosian, attorney for Ixora Utilities, Inc. on <br />Wednesday, February 24, 1982, for the purpose of final- <br />izing an acceptable acquisition method (copy of contract <br />attached). The draft agreement Provides; <br />(a) that the acquisition is contingent upon Farmers Home <br />Loan Administration's issuance of a letter of condition <br />satisfactory to.the County, (b) contingent upon obtaining <br />an appropriate consent order..from the Department of <br />Environmental Regulation, (c) provides for the County's <br />takeover of the system at the next billing cycle after <br />receipt of the letter of conditions from Farmers Home Loan <br />Administration, and (d) provides for payment of the <br />purchase price within 120 days of takeover, and (e) if <br />payment is not made within 120 days of takeover the <br />obligation will bear interest at a rate established at two <br />points below prime rate then prevailing. <br />Also attached to this memorandum is a letter from Jud Freeman, bond <br />counsel for.the County, setting forth the basis for charging fees <br />with respect to the following financing; <br />A. For the issuance of $2,600,000.00 in water revenue bonds <br />to purchase Ixora and Treasure Coast Utilities, upgrade <br />the two systems to DER standards, finance $426,000.00 cost <br />overrun on the South County project and construct two new <br />wells. <br />MAR 31982 53 mox 49 PAE <br />