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AGREEMENT OF SETTLEMENT W/FLORIDA LAND CO.(BENT PINE UTILITY CO_) <br />The Board reviewed memo from the Assistant Utilities Director <br />Harry Asher: <br />DATE: JUNE 2, 1989 <br />TO: JAMES E. CHANDLER <br />COUNTY ADMINISTRATO <br />FROM: TERRANCE G. PINTO <br />DIRECTOR OF UTIL T}C RVICES <br />SUBJECT: AGREEMENT OF SETTLEMENT: INDIAN RIVER <br />COUNTY/FLORIDA LAND COMPANY/BENT PINE <br />UTILITY COMPANY ' <br />PREPARED AND STAFFED BY: HARRY E. ASHER <br />ASSISTANT DIRECTOR OF ADMINISTRATION <br />DEPARTMENT OF UTILITY SERVICES <br />BACKGROUND <br />On October 26, 1987, Indian River County purchased the Bent Pine <br />Water and Sewer Utility System. A part of the payment for the <br />system was by futures payment of $1,500.00 per connection, based on <br />connection of a specified number of new customers to the utility <br />system and set forth in a Promissory Note dated October 26, 1987, <br />_:from the County in favor of Bent Pine. <br />On November 1, 1988, Indian River County acquired the physical units <br />of the North Beach Water Company and assumed the obligations of the <br />Water System pursuant to a Developer's Agreement between Florida <br />Land and the North Beach Water Company, through which Florida Land <br />had reserved capacity in the North Beach Water System sufficient to <br />serve 155 Equivalent Residential Units. <br />ANALYSIS <br />Florida Land has approached Indian River County with a proposal to <br />sell both its existing 155 ERU's of capacity reservations in the <br />Indian River County/North Beach Water Plant and assignment of its <br />interest in the Bent Pine Note, which represents a balance of 60 <br />lots at the agreed fee of $1,500.00 each. <br />Florida Land has proposed to sell both the 155 ERU capacity <br />reservation and assignment of its interest in the Promissory Note <br />for the amount of $125,000.00, less $18,468.44 owed by Florida Land <br />to the County for guaranteed revenue obligations to the Indian River <br />County/North Beach Water System, less an additional $2,359.68, which <br />the County shall pay to Aurora Homes, Inc., as satisfaction of a <br />Writ of Garnishment. <br />Acquisition/payment for 155 ERU's of reserved capacity would be from <br />Impact Fees. <br />RECOMMENDATION <br />The Staff of the Department of Utility Services recommends that the <br />Board of County Commissioners approve the proposed purchase <br />agreement based upon the attached financial analysis. <br />87 <br />ox I <br />