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13.E. UPDATE OF DISCUSSIONS WITH CITY OF VERO BEACH ("CITY") REGARDING WATER / WASTEWATER SERVICE TO UNINCORPORATED AREAS OF THE COUNTY Attorney Reingold invited former Indian River County Attorney Alan Polackwich to address the Board regarding the communications and negotiations he had with the City of Vero Beach (City) regarding their water and wastewater facilities. Alan Polackwich, former Indian River County Attorney, reviewed the memorandum he prepared before he retired, dated August 1, 2013. He provided background and analysis on the water and sewer service in the unincorporated areas of the County, and the 30 -year Franchise Agreements that the County entered into with the City in 1987, to serve unincorporated areas (the south barrier island and isolated areas adjacent to the City on the mainland). He explained the details of his communications and negotiations with the City because he felt that it was important to transfer the information so the Commissioners could make a well-informed decision on whether the City should keep serving the unincorporated areas. He noted that the Franchises will expire in March of 2017, and recommended that the City keep serving the unincorporated areas and charge County rates, but with the City reducing its equalization fee to 3%, and the County reducing its franchise fee to 3%. Following a lengthy discussion, Commissioner Solari suggested adding a provision to the Agreement that if the City stops giving County rates, and reverts to higher rates, that the County would have clear rights to take over service to the unincorporated areas, as well as the infrastructure. Attorney Polackwich replied that should the City charge rates different than what the Agreement requires, it would be a breach of contract. September 10, 2013 23 144 PG 286