3/20/1985 - Laserfiche WebLink

Home Browse Search

MAR 2, 0 1985 SETTLEMENT - SEMINOLE SHORES LITIGATION BOOK CEJ FADE? 78 Attorney Brandenburg reviewed memo of Assistant County Attorney Paull, as follows: TO: DATE: FILE: The Board of County Commissioners March 13, 1985 SUBJECT: DISCUSSION REGARDING SETTLEMENT OF SEMINOLE SHORES LITIGATION Chri opher J. Paull FROWAssistant County Attorney REFERENCES: BACKGROUND For the past year this office has been litigating a contract for installation of a water treatment plant and system within the old Seminole Shores Subdivision. You will recall that the original developers, Mr. and Mrs. Irving Silverman and Lowell Lohman, had committed to installation of a reverse osmosis plant to service the subdivision at the time of final plat approval, however they did not do so and eventually sold the remaining lots together with assign- ment of the obligation to install the plant to Mr. Allen W. McCain. To date, McCain has not performed on the agreement and the subdivi- sion presently exists without water, with the exception of two developed lots which tied into the County line running down A -1-A. A third owner has purchased capacity in this line but is unable to obtain service to his lot in order to build a home because of the failure and deterioration of the originally installed water lines. Mr. McCain still owns a number of lots within the subdivision and has agreed in principal to settle this matter in accordance with the attached settlement agreement. The settlement may be summarized as follows: McCain admits liability with respect to the issues in the law- suit and places in escrow with the County a sum of money equal to 125% of the cost of installing a new waterline to service the entire subdivision, in accordance with City of Vero Beach specifications. McCain would then let a contract to do the job and payment for the work would be made from the escrow fund as it proceeds, with the approval of the County. Completion date for the work is June 18, 1985, after which the County would then take ownership of any remaining funds in order to complete the job. In the event there is a deficiency in the escrow desposit, McCain will be confessing to entry of a judgment by the court for the amount of the deficiency. The objective of this litigation has been to provide a potable water source to the platted lots and the installation of a new waterline to tie into the City's A -1-A service is felt to be a more economical and better long term solution, rather than installing the reverse osmosis plant originally contemplated. RECOMMENDED ACTION: The proposed settlement meets with the approval of both the County Administrator and the Utilities Director and it is recommend- ed that the Board favorably accept this settlement offer, subject to receipt of the executed settlement agreement and the establishment of the required escrow account from the defendant, Mr. McCain. 93