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Board of County Commissioners Meeting Minutes-Final December 20,2016 Commissioner Solari voiced concerns over subsidy funds and the costs of the project. Russell Herrmann, 586 Redwood Court, Sebastian,Vice President of the Friends of St. Sebastian River,read an article from the Harbor Branch Oceanographic Institute,which spoke about the urgent need to restore the Indian River Lagoon by improving sewage collection. Glenn Heran,Treasurer of the Taxpayers Association of Indian River County, did not support the septic to sewer conversion; he felt it was not fair to those who already paid to be on a sewer system, and believed that those less likely to afford the conversion should receive financial assistance,not those in riverfront communities. Administrator Brown informed Mr. Heran that this is a mandatory assessment, and that there are some generous subsidies and grants to assist with the financial burden of the project. Carter Taylor, 2235 Silver Sands Court, acting Executive Director of the Indian River Neighborhood Association(Association),read a letter from the Association in support of moving forward with the septic to sewer project. A motion was made by Vice Chairman O'Bryan,seconded by Chairman Flescher, to move forward with the following options: (1)Approve the County's Funding Mechanism-to allocate the necessary dollars to reduce the construction and connection costs as much as possible for property owners: (a)Construction Cost Funding(Utility Assessment Fund 473 at 20%, Optional Sales Tax Contribution at 20%,and Property Owner Assessment at 27%); and(b) Impact Fee Funding with the Optional Sales Tax Contribution of 100%,with a 5-year sliding benefit for existing septic and not to apply to new construction; (2)Begin implementation of a Phase 1 Septic to Sewer Assessment Project for the construction costs for all properties, both inside the City of Sebastian and unincorporated County by: (a)directing staff to follow assessment procedures for notifying benefitting property owners, preparation of assessment roll,and the necessary resolutions,and (b)holding necessary public meetings for property owners and interested parties; (3)Approve the special 2%APR interest rate for the Commercial Phase 1 S2S project area; (4) Direct staff to finalize the bid package and go out for competitive bids; (5) Formalize a connection policy for existing structures within the North County Phase 1 S2S area,with a 5-year timeline for mandatory hook-up; and (6) Direct staff to conduct an updated rate study to include looking at recouping any cost of the construction and the future removal and replacement(R&R)costs. The motion carried by the following vote: Aye: 4- Chairman Flescher, Vice Chairman O'Bryan, Commissioner Adams, and Commissioner Zorc Nay: 1 - Commissioner Solari Indian River County Florida Page 11