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BOOK - 98 FA' E.3 1. ON MOTION by Commissioner Eggert, SECONDED by Commissioner Bird, the Board unanimously approved Work Authorization No. 36 with Driveways, Inc., as recommended by staff. AAUTHORIZATION IS ON FILE SEBASTIAN WATER EXPANSION - PHASE I The Board reviewed the following memo dated 6/5/96: DATE: JUNE 5, 1996 TO: JAMES E. CHANDLER COUNTY ADMINISTRATOR FROM: TERRANCE G. PINTO DIRECTOR OF UTI , TY/ VICES PREPARED JAMES D. CHASTAI ANIS ,TAFFED MANAGER OF ASSE PROJECTS BY: DEPARTMENT OF UTILITY SERVICES SUBJECT: SEBASTIAN WATER EXPANSION - PHASE I INDIAN RIVER COUNTY PROJECT NO. UW -95 -28 -DS BACKGROUND On November 21, 1995, the Board of County Commissioners approved proceeding with the project as presented. (See attached agenda item and minutes.) At the time of the acquisition of the Sebastian utility system, a County/City of Sebastian utility agreement ("the agreement") was entered into between the City of Sebastian and Indian River County. (Copy attached.) The purchase of the utility and bonding for the acquisition and projects was based upon completion of the water system expansion. ANALYSIS Under Section C of the agreement and under the provisions of Chapter 170 of the Florida Statutes, the County may request the City to impose a special assessment for the water improvements. The City shall conduct a hearing to determine if the City would levy the special assessment projects. This could be done under either Section 170.08 F.S. or the City's procedures for levying a home rule special assessment, or waive its right to do so, which would constitute complete and full authority for the County to levy such special assessments. On May 7, 1996, a letter (copy attached) was hand delivered to the City of Sebastian through its City Manager, Thomas Frame, together with copies of the proposed project, estimated costs, geographic parameters, assessment roll, maps, and methods used for the proposed assessment, etc., as required in the agreement, requesting the City to conduct a hearing and make a determination regarding levying the special assessments. On May 30, 1996, a response letter was received from Mr. Thomas Frame, City Manager, (copy attached) stating "the City wants the County to do the assessments and proceed with the water expansion projects and that the City would be willing to waive the 60 -day notice as per the agreement." Mr. Frame also stated, "The City of Sebastian is.in total support of water line extensions within the City, and the City is prepared to move forward for full support with all intents of the interlocal agreement." The County Attorney advises that a Municipal Service Benefit Unit District (MSBU) should be established (by ordinance) if the County is required to do the assessment. The City of Sebastian passed an ordinance (No. 95-25), which was made part of the interlocal purchase agreement (copy attached) granting the County the right to set up an MSBU. 27 JUNE 18, 1996 -