2/17/1998 - Laserfiche WebLink

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TO: James Chandler County Administrator FROM: James W. Davis, P.E. Interim Utility Directo Don Hubbs, P Utility Director r14 SUBJECT: Vero Beach Disney Resort Water and Wastewater Plant Surcharge Payment DATE: February 9, 1998 DESCRIPTION AND CONDITIONS Prior to July 1, 1995, the Utility Services Department was manually billing the Disney Resort Property on north A1A in Wabasso for up to 400 Equivalent Residential Units (E. R. U.) of water and wastewater capacity. The development was under construction at that time, and computer billing was not yet appropriate. In July, 1995, the Department began computer billing since Certificate of Occupancies were forthcoming. When the computer entries were made, both the $13.00 per E.R.U. monthly water and wastewater surcharges were not coded into the billing account. As a result, $280,800.00 was not billed to Disney from July 1995 to October, 1997. On November 25, 1997, the Interim Utility Services Director, James Davis, met with the General Manager of the Vero Beach Disney Resort, Sonya Dees, to explain the oversight. Coincidentally, the Disney Resort Management changed in July, 1995 when the Development Corporation transferred control of the resort to the Vacation Club Corporation. Disney has been very understanding concerning the oversight, however, direct payment of the $280,800.00 amount is difficult within their current fiscal year's budget. Staff has reviewed the $13.00/E.R.U. Surcharge Agreements prepared when the County purchased the Sea Oaks Wastewater Treatment Plant and the North Beach Utilities Water Plant in 1989. The Wastewater Surcharge will end in approximately 20 months. The Water Surcharge will terminate when the acquisition cost is received, which will be in several years. A lump sum payment and monthly schedule was discussed with Disney to pay the $280,800.00 amount. ALTERNATIVES AND ANALYSIS To facilitate payment to the County, staff and Disney are agreeable to the following agreement: Disney will pay to the County a total of $280,800.00 with the first payment on February 41 of $132,678.00 which will cover the cost of the existing commercial development and unconstructed 177 time share units. In addition, over the next 20 months, monthly installments of $6,788.93 will be paid to the County. Finally, from months 21 through 24, monthly installments of $3085.88 will be paid to the County. The above three payment scenarios recover the entire $280,800.00 February 17, 1998 e� E®DK101-111'r