8/8/1995 - Laserfiche WebLink

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� � r (City) Utility System (System) and to establish a thirty (30) year franchise agreement "to provide potable water distribution and wastewater collection for the City of Sebastian" (Copy Attached). After review, the Board authorized Staff to proceed with investigation of the legal aspects of the acquisition including the expense of the services of bond counsel to review the acquisition. (Copy of minutes are attached). On May 2, 1995,, the Department presented to the Board of County Commissioners the Department's analysis of the proposed purchase of the system, based upon information available at that time and requested further direction from the Board of County Commissioners in the matter prior to proceeding with Public Hearings in the matter. After review, the Board of County Commissioners directed staff to proceed with the public hearings on the acquisition of the City of Sebastian Utility System. (Copy of minutes attached). ANALYSIS: The Department has updated its financial analysis based upon the final negotiated Interlocal Agreement Providing For the Transfer of the City of Sebastian Water and Wastewater System. The basic criteria used in performing the analysis was as follows: (1) the purchase must be supported with revenues generated under existing County utility rates and (2) that the existing County utility customers would not be impacted negatively. The purchase of the System by the County will be beneficial to the current City customers. The current City of Sebastian utility customers would realize a decrease in their monthly charges as follows: 59,000 Gals. Per Month 79,000 Gals. Per Month Current City Charges $68.45 $82.97 Under County Rates $58.88 $70.52 Increase/(Decrease) ($9.57) ($12.45) % Decrease - County Rates 13.98% 15.01% -, The Department has analyzed the financial and engineering information provided by the City. Based upon this analysis (copy attached), contents of the proposed Interlocal Agreement (copy attached as part of the public hearing document) the Department has determined that it would be fmancially feasible to acquire the City System. Major aspects of the financial analysis is based upon the following assumptions: (1) Due to the high operating and maintenance costs, the County would abandon (surplus) the existing water and wastewater treatment facilities and would supply capacity from its existing facilities and (2) the agreement by the City to expand the water and sewer system to serve areas in the City without utility service. The purchase price as set forth in the offer of sale from the City of Sebastian is $5,000,000.00, the amount of the bond indebtedness for the utility system. The terms of the sale are as set forth in the Interlocal Agreement (attached as part of the public bearing document). The value of the Sebastian Utility System being received is as follows: Water and Wastewater Utility System (Plant value less depreciation) $3,363,248 - (Plant Purchased from GDU) Indian River Drive Water Line Fund Transfers Total 25 August 8, 1995 750,000 11,237,470 $5,350,718 WR 95