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The Chairman called for a recess at 11:35 a.m. (due to other Board obligations), and <br />reconvened the meeting at 3:00 p.m., with discussion resuming on Item 11.A. County <br />Administrator Matters. <br />13. B. CITY OF VERO BEACH ("CITY") WATER, WASTEWATER AND RECLAIMED <br />WATER A GREEMENT <br />County Attorney Dylan Reingold provided background conditions, and analysis <br />regarding the County's 1987 agreements with the City of Vero Beach (the City) granting it <br />franchises to provide water and wastewater service to certain unincorporated areas of the County, <br />including the south barrier islands. The franchises will expire in 2017, and pursuant to the <br />Board's direction in September 2013, a proposed water, wastewater, and reclaimed water <br />renewal agreement was presented (on January 21, 2014) requesting that the City: (1) charge <br />County rates; (2) drop the 10% surcharge; (3) split their equalization charge and the County's <br />franchise fee to 3% each; and (4) transfer the system to the County if County rates cannot be <br />maintained. He disclosed that the City Council only agreed to the first two conditions, and in <br />deference to the City's preference, Attorney Reingold recommended that the Board model the <br />renewal agreement after the water, wastewater, and reuse water franchise agreement between the <br />City and the Town of Indian River Shores. Due to certain disagreements between the County <br />and City, he advocated including "whereas" clauses affirming that the agreement does not waive <br />either party's stance as to who owns the utility facilities and the City's alleged right to <br />permanently serve the unincorporated areas. <br />Commissioner Zorc wondered whether the proposed agreement stipulates that any fees or <br />charges other than the base rate must also conform to those charged by the County. <br />Attorney Reingold responded that there is language in the agreement Section 6. Utility <br />Rates and Fees, that states that all fees and charges established and imposed by Vero Beach shall <br />correspond to such fees and charges imposed by the Indian River Department of Utilities. <br />February 11, 2014 14 <br />