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Boos 95 ,P,�, v 874 The staff believes that the purchase price and terms of the Interlocal Agreement are reasonable. The County submitted its financial and engineering analysis to bond counsel and its bond underwriters and received positive response as to the County's ability to either assume the existing City Utility Bond Issue or issue bonds to defense the existing bond issue. The City of Sebastian held a special city council meeting on July 19,1995, at 7:00 P.M. and conducted a Public Hearing as required by Florida Statutes Chapter 180.301 to determine that the sale of the System was in the public interest. Based upon the information presented at the Public Hearing the City Council voted unanimously to pass City Resolution No. R-9542 - Finding Sale of the City of Sebastian Water and Wastewater Facility is in the Public Interest in Accordance with F.S.130.301(R 9542). (Copy attached). The Resolution included approval of the Interlocal Agreement and "authorized and directed the Mayor to execute such Interlocal Agreement on behalf of the City." As set forth in the attached memo from Joseph A. Baird, Director, Office of Management and Budget, Indian River County staff has been analyzing for several months the financing alternatives for the purchase of the utility.. As set forth in the memo various options were considered. At this time and for the reasons set forth in the memo, if the purchase is approved by the Board, staff is proposing that we interfund borrow and pay Sebastian cash or securities to defense the bond issue. We will then issue bonds for other utility capital projects and reimburse the interfund borrowing for the Sebastian purchase. RECOMMENDATION: The staff recommends purchase of the City of Sebastian Utility System, approval of the operating budget with required improvements, and change orders for the construction of the required waterline connections, subject to results of the public hearing as required by Florida Statutes 125.3401 to determine if the purchase of the City of Sebastian System is in the public interest. Director Pinto reviewed information in the Public Hearing Document which provides documentation required by Florida Statutes Chapter 125.3401 dealing with the purchase or sale of water, sewer or wastewater reuse utility by County. Director Pinto pointed out certain responsibilities concerning pending lawsuits and other prior agreements were addressed in the agreement. He discussed the expansion of the system and stressed that the acquisition will not be financially successful if the expansion of the system in Sebastian does not take place, because the financial analysis is based on expanding the service area especially for water. Director Pinto wanted it to be very clear that the boundaries of the expansion were not locked in stone and explained that under the contract, the City of Sebastian has the ability to set up the assessment districts, but the County will provide technical assistance and the City Council will sit as the assessment board, 26 August 8, 1995 _I