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two (2) projects that would not only serve the City's service area, but would benefit the entire County. They will be constructing a project that will repurpose stormwater from the Main Relief Canal for irrigation. The second project, which is the most important, is they will be constructing a new state of the art advanced Waste Water Treatment Plant (WWTP). He said that fighting over a service area makes no sense. He asked that they work together and serve their community in the most efficient economical way possible. The City needs the County to recognize the permanent duration of the 1989 TA so the City can move forward with the new advanced WWTP to the capacity to serve the entire service area. If the County is unable to recognize perpetuity of the document now then they can conclude this meeting. B) County's response and its statement of the issues by Indian River County Chairman Joseph E. Flescher Chairman Flescher stated that it was his position that the City continues to serve the Town of Indian River Shores (IRS) consistent with the terms of the existing Franchise Agreement (FA) and the City continues to serve the south barrier island under a reasonable FA. It is not his intent or the Commission's intent for the County to take over any of the City's service areas, nor is it their intent to have the City and the County engage in litigation. The County's offer to the City would be the return of the key points that the County staff presented to the City several weeks ago. In the spirit of cooperation the County would be willing to acknowledge the validity of the Service Territory Agreement (STA) in exchange for a reasonable FA for the unincorporated areas in Indian River County that are currently served by the City. That FA would have a phase in to the City rates. County staff had proposed five (5) years of the continued County rates with the rates then shifting to City rates, but with a maximum annual increase of 5% per year. After that the rates would be City rates with no restrictions. It is his understanding that City staff had concerns about the inability to control the rates during the phase in that period. To resolve that issue, he would propose that if the County were ever to decrease rates, the City could charge City rates. The City would also have to not impose any surcharges, which is consistent with the current City billing practice. Finally, the level of service would be the same for both customers in the City and in the unincorporated areas served by the City, both with respect to water quality and scheduling of improvements to the system. He said that he felt that was a very reasonable compromise that would help them avoid litigation and give the needed certainty to the City. He said that they know IRS has filed a lawsuit against the City about the STA and any resolution here may end up causing the County to be a co-defendant. He said that he wants to come to a meaningful resolution between the City and the County. He stated that it is not his intention to have the County be an active participant in any such litigation. He said that he is not interested in hearing from staff and outside attorneys today about litigation positions. They want to hear about resolutions and solutions. It is his understanding that the intent of the process is to have their two (2) Boards (the City Council and the County Commission) try to seek an agreement. To find a common ground, understanding, and commitment to the service of the citizens of Indian River County and any other jurisdiction involved. He wants to hear from the City Council and his fellow Board members on this proposal. He said if the County agrees to the terms of the TA, the County becomes a defendant in the IRS lawsuit. If the County takes the position that the TA is invalid, the City could then in turn sue the 2 09/08/21 Joint City Council/County Commission