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HomeMy WebLinkAbout3/13/1975THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, MET IN SPECIAL SESSION AT THE COURTHOUSE, VERO BEACH,' FLORIDA ON THURSDAY, MARCH 13, 1975 AT 10:00 O'CLOCK A.M. PRESENT WERE ALMA LEE LOY, CHAIRMAN; WILLARD W. SSIEBERT, JR., VICE CHAIRMAN; EDWARD J. MASSEY, WILLIAM WODTKE AND EDWIN S. SCHMUCKER. ALSO PRESENT WERE JACK G. JENNINGS, COUNTY ADMINISTRATOR. PAUL D. BURCH, ATTORNEY TO THE BOARD OF COUNTY COMMISSIONERS WAS ABSENT BECAUSE OF ILLNESS AND CALVIN B. BROWN, ATTORNEY, SAT IFS 7OR HIM. CHAIRMAN LOY CALLED THE MEETING TO ORDER AND PRESENTED CHARLES L. HERRING, ATTORNEY REPRESENTING URBAN DEVELOPMENT UTILITIES. MR. HERRING INTRODUCED THE FOLLOWING PEOPLE INVITED TO THIS MEETING TO DISCUSS URBAN DEVELOPMENT UTILITIES/WATER PROBLEMS. ROBERT JENNINGS, SANITARIAN, INDIAN RIVER COUNTY HEALTH DEPARTMENT BILL BOSTWICK, DEPARTMENT OF POLLUTION CONTROL,REGIONAL OFFICE JERRY BALLARD, ENGINEER, FARMERS HOME ADMINISTRATION, GAINESVILLE WALLACE W. MCCORMACK FARMERS HOME ADMINISTRATION WILLIAM W. WEATHERS, FARMERS HOME ADMINISTRATION PAUL T. COLLIER, OFFICE OF GENERAL COUNSEL, DEPARTMENT OF AGRICULTURE CLAUDE L. GREEN, DIRECTOR, FARMERS HOME ADMINISTRATION VANCE KIDDER, ATTORNEY ENVIRONMENTAL LAW SECTION, DEPARTMENT OF OLLUTION CONTROL PAUL PHILLIPS, P.E., DEPARTMENT OF POLLUTION CONtROL, FORT PIERCE OFFICE CHUCK BITZEY, DEPARTMENT OF POLLUTION CONTROL LILLA MAE MIMIS, URBAN DEVELOPMENT UTILITIES, INC. LEON YOUNG, ENGINEER,URBAN DEVELOPMENT UTILITIES, INC. FRED FLAIR, PRESIDENT,URBAN DEVELOPMENT UTILITIES, INC. GLOVER HUSTON, URBAN DEVELOPMENT UTILITIES, INC. GEORGE JOHNSON, DIRECTOR, URBAN DEVELOPMENT UTILITIES, INC. TOMMY LEE TURNER, URBAN DEVELOPMENT UTILITIES, INC. TILDEN DAVIS, DIRECTOR OF FINANCE, INDIAN RIVER COUNTY SCHOOLS DR. DAVID SMITH, OUNTY CONSULTING ENGINEER,.SVERDRUP AND PARC LS AND SSOCIATES, INC. AND BEINDORF AND ASSOCIATES, INC. A JOINT VENTURE) ROBERT BERG, ASSISTANT PLANNING DIRECTOR MR. HERRING THEN PROCEEDED TO:GIVE THE BOARD BACKGROUND INFORMATION OF THE WATER AND SEWER PROBLEMS PLAGUING URBAN DEVELOP- MENT UTILITIES AND IN SUMMARIZING STATED:THAT A LONG TERM ANSWER TO THE WATER SITUATION IN THE.:GIEFORD AREA AND URBAN DEVELOPMENT UTILITIES WOULD BE TO ASK THE COUNTY COMMISSIONERS IF THEY WOULD EXERCISE THEIR OPTION TO SECURE WATER FROM THE CITY OF VERO BEACH FOR RESALE TO URBAN DEVELOPMENT UTILITIES. THE COUNTY WOULD BUY WATER FROM THE CITY OF VERO BEACH AND SELL IT TO THE APPROXIMATELY 1163 CUSTOMERS; OF URBAN DEVELOPMENT UTILITIES. MR. HERRING STATED THAT FARMERS HOME ADMINISTRATION IS PREPARED TO LOAN U.D.U. AN ADDITIONAL $122,210.00, TQ-BE.USED`TO CARRY LINES FROM THE CITY OF VERO BEACH TO THE U.D.U. SYSTEM. MR. HERRING CONTINUED THAT THIS COULD BE DOME WITHOUT COST TO THE COUNTY: DR. DAVID SMITH, COUNTY CONSULTING ENGINEER STATED THAT HE HAD SERIOUS RESERVATIONS ABOUT U.D.U'S ABILITY TO OBTAIN A GOOD QUALITY OF WATER FROM THIS AREA AND HE FEELS THE ONLY LONG RANGE SOLUTION IS THE AVAILABILITY. OF TREATED WATER THROUGH THE CITY OF VERO BEACH. DR. SMITH STATED THAT AN OPERATIONAL BUDGET TO OPERATE THE SYSTEM TODAY HAS.BEEN PREPARED. THE BUDGET FOR OPERATING INCLUDES ENOUGH LABOR, MATERIALS AND POWER COSTS TO ACTUALLY MEET THE £X- PENDITURE OF WHOLESALE COSTS. WITH THE NUMBER OF:CUSTOMERS U.D.U. HAS, THE INCOME WILL BE MARGINAL.. HE THEN RECOMMENDED A SMALL IN- CREASE IN THE PRESENT WATER RATE SCHEDULE SO THAT THERE WILL BE MORE INCOME THEN EXPENDITURES. THE QUESTION OF MANAGEMENT OF THIS SYSTEM WAS DISCUSSED AND IT WAS STATED THAT IF THE BOARD'S .DECISION IS FAVORABLE TO EXERCISE THEIR OPTION WITH THE CITY OF VERO BEACH, THEN FARMERS HOME ADMINISTRATION WILL ASK THE COUNTY''TO ENTER INTO AN AGREEMENT WITH THEM TO MANAGE U.D.U. FACILITIES. IT WAS STATED -THAT GOOD MANAGEMENT PRACTICES MUST BE INITIATED AND FOLLOWED AND ARE VITAL TO THE SUCCESS OF THESE MEASURES BEING TAKEN TO IMPROVE MAYS SERVICE. COMMISSIONER SCHMUCKER ASKED "ASSUMING THAT'U.D.U. CAN OBTAIN WATER FROM THE CITY OF VERO BEACHIIS THEIR.SYSTEM ADEQUATEZ" DR. SMITH ANSWERED THAT THE DISTRIBUTION SYSTEM IS IN GOOD: SHAPE AND ALL THE WATER METERS WILL BE CHECKED TO SEE THAT THEY ARE OPERATING PROPERLY. COMMISSIONER SIEBERT STATED THAT WITHOUT A QUALIFIED OP- ERATOR -MANAGER THIS SYSTEM WILL NOT WORK AND HE QUESTIONED IF THE COUNTY WOULD BE IN A POSITION TO MANAGE THIS SYSTEM, AND SUGGESTED THE POSSIBILITY OF A MANAGEMENT CONTRACT WITH THE CITY OF VERO BEACH: BEING CONSIDERED. WILLIAM WEATHERS, FARMERS HOME ADMINISTRATION OFFICIAL STATED THAT YOU CAN HAVE THE FINEST SYSTEM AND WITH POOR MANAGEMENT IT WILL NOT SUCCEED. THIS HAD BEEN DISCUSSED AND ONE OF THE CON DITIONS TO THE LOAN -GRANT APPROVAL WILL BE THAT F.H.A. MUST ENTER INTO AN AGREEMENT WITH A QUALIFIED.OPERATORMANAGER. THEY WERE HOPING THAT THE COUNTY WOULD AGREE TO OPERATE AND MANAGE THIS SYSTEM. LEON YOUNG/ MANAGER OF U.D.U. STATED THAT WHEN THEIR INITIAL BUDGET WAS SET UP BY F.H.A. IT WAS BASED SOLEY ON THE AMOUNT OF MONEY NEEDED TO MAKE PAYMENTS ON THE F.H.A. LOAN. As A RESULT, EVEN IF THE 463 WATER USERS THEY NOW HAVE PAY THEIR MONTHLY FEES 100%, THERE WOULD NOT BE SUFFICIENT MONEY TO TAKE CARE OF THE OPERATING AND MAINTENANCE EXPENSES OF U.. D,U. MR YOUNG STATED THAT U.D.U. HAS OPERATED IN THE RED FOR THE PAST FIVE YEARS THAT THEY HAVE BEEN IN EXISTENCE. IN ORDER FOR U.D.U. TO MEET THEIR FINANCIAL OBLIGATIONS THEY WILL NEED A RATE INCREASE THAT WILL BE ADEQUATE TO -MAKE REPAYMENT TO F.H.A. AND. TO MEET THEIR OPERATING EXPENSES. COMMISSIONER MASSEY ASKED F.H.A. OFFICIALS WHAT WILL HAPPEN TO THE $616,000.00 WHICH IS THE AMOUNT OF THE PRESENT LOAN TO U.D.U. MR. WEATHERS STATED THAT WE WILL MAKE AN ADDITIONAL LOAN- GRANT TO UP -GRADE THIS SYSTEM AND WORK WITH U.D.U. IN OPERATING AND MANAGEMENT OF THIS SYSTEM. AS THE SYSTEM GROWS, WE HOPE 'IN THE FUTURE TO RECOVER SOME OF THESE EXPENSES. HE CONTINUED THAT PRESENTLY WATER LINES GO BY APPROXIMATELY 800 HOMES AND U.D.U. IS PRESENTLY SERVICING ONE-HALF THAT AMOUNT. HE STATED THAT IF YOU SERVE POTABLE WATER, THE NUMBER OF WATER USERS SHOULD DOUBLE. COMMISSIONER SIEBERT QUESTIONED IF THERE MIGHT BE A POSSIBILITY THAT THE OPERATOR -MANAGER CONTRACT COULD BE WITH THE CIT" OF VERO BEACH, WHO ALREADY HAVE A DEPARTMENT OF EXPERTS WHO COULD HANDLE THIS. DR. SMITH STATED THAT, POSSIBLY, THIS COULD BE WORKED OUT. COMMISSIONER WODTKE EXPRESSED CONCERN ABOUT THE CONDITION OF THE WATER LINES WHICH DISTRIBUTE WATER PUMPED FROM THE U.D.U. PLANT TO THE USERS. DR. SMITH STATED THAT HE HAD EXAMINED THE -DISTRIBUTION SYSTEM AND FOUND THAT THE PIPES ARE RUSTED AND CORRODED, BUT THEY ARE'STRUCTURALLY SOUND. THE CITY WATER IS NON -CORROSIVE BUT.THE RUST IN THE LINES WOULD AFFECT THE WATER QUALITY. CLAUDE GREEN, DIRECTOR, FARMERS HOME ADMINISTRATION STATED THAT THERE IS A 10% CONTINGENCY FUND SET UP TO CLEAN THE LINES AND HE STATED THAT THEIR METHOD OF CLEANING LINES HAS BEEN VERY SUCCESSFUL. COMMISSIONER WODTKE ASKED IF_THE COUNTY ARRANGED TO GET WATER FROM THE CITY OF VERO BEACH TO THE U.D.U. PLANT, WOULD THIS QUALITY OF WATER MEET ALL THE REQUIREMENTS OF THE AGENCIES PRESENT TODAY. ALL THE AGENCIES AGREED THAT WATER FROM THE CITY OF VERO .BEACH WOULD MEET ALL THEIR REQUIREMENTS, COMMISSIONER WODTKE STATED THAT THERE IS NOTHING IN THE BUDGET THAT STIPULATES ANY PAYMENT OF.THE BACK LOAN OF $616,000.00. MR. GREEN STATED THAT WHEN THE TIME_COMESTHAT THE SYSTEM IS UP TO STANDARD AND THERE IS AN INCREASE IN USERS, THEN THE LOAN WILL BE REAMORTIZED. COMMISSIONER WODTKE QUESTIONED IF THE F.H.A. WOULD BE IN A POSITION TO GUARANTY U.D.U.'s WATER PAYMENT TO THE COUNTY FOR A PERIOD OF ONE YEAR. MR. COLLIER STATED THAT HE DID NOT THINK THIS COULD BE DONE. F.H.A. HAS BUDGETED ENOUGH MONEY TO GUARANTY PAYMENT TO THE COUNTY FOR THREE MONTHS, IF U.D.U. COULD NOT -MEET THEIR PAYMENT. m4_ rti TMA"R 13 975 .MR, HERRING INFORMED THE BOARD THAT HE WILL PUT UP THE MONEY NEEDED TO REPLACE U,D,U,'S SEWAGE TREATMENT PLANT, WHICH A CIRCUIT COURT JUDGE HAS ORDERED THAT IT MEET STATE POLLUTION STAND- ARDS- BY THE FIRST WEEK IN APRIL, 1975. MR, HERRING -HAS PLANS TO BUILD 224 HOMES IN THE GIFFORD AREA THAT WOULD TIE INTO THE NEW U.D.U. SEWER TREATMENT SYSTEM, CONTINGENT UPON A SOLUTION TO THE WATER PROBLEM, MR, GREEN INFORMED THE COMMISSIONERS THAT A DECISION MUST BE MADE BY APRIL 15TH, 1975 OR F.H.A. WILL HAVE TO RETURN THIS GRANT AND LOAN MONEY TO THE FEDERAL GOVERNMENT, CHAIRMAN LOY STATED THAT IF THE COUNTY DID GET INVOLVED IN SUPPLY WATER TO U,D,U „ THERE IS NO WAY THAT IT WOULD NOT COST SOME MONEY, EVEN IF IT IS A NOMINAL -AMOUNT, AS FOR U,D,U,'S DEBTS, SHE STATED "THERE IS NO REASON WHY THE TAXPAYERS OF THIS COUNTY SHOULD PAY -ANY DEBT FOR SOMETHING THAT IS NOT WORKING," COMMISSIONER SIEBERT STATED THAT WE ALL KNOW IF THE COUNTY GETS INVOLVED INSUPPLYING WATER TO U.D.U. THAT IT WILL BECOME A TREMENDOUS MORAL OBLIGATION TO INDIAN RIVER COUNTY TO SEE THAT THEY HAVE GOOD WATER IN THE GIFFORD AREA, HE STATED THAT HE WOULD BE IN FAVOR OF ENTERING INTO A CONTRACT WITH THE CITY OF VERO BEACH TO SUPPLY U.D.U. WITH WHOLESALE WATER BUT HE'DID NOT AGREE WITH THE COUNTY ENTERING INTO A CONTRACT WITH F.H.A. AS OPERATOR -MANAGER OF U,D,U „ BUT WOULD ATTEMPT TO COME UP WITH A CONTRACT WITH THE CITY OF VERO BEACH AS THEY HAVE THE EXPERTISE, ALL THE BOARD MEMBERS AGREED WITH COMMISSIONER SIEBERT'S STATEMENT, A MOTION WAS MADE BY COMMISSIONER SCHMUCKER, SECONDED BY COMMISSIONER SIEBERT, THE BOARD UNANIMOUSLY APPROVED NEGOTIATING WITH THE CITY OF VERO BEACH RELATIVE TO THE SUPPLYING OF WATER TO URBAN DEVELOPMENT UTILITIES, INC, AND AUTHORIZED THE COUNTY ATTORNEY, COUNTY CONSULTING ENGINEERS AND THE COUNTY ADMINISTRATOR TO WORK WITH, THE CITY OF VERO BEACH CITY MANAGER AND MEMBERS OF THE CITY UTILITIES' DEPARTMENT, BOOK 2 par THERE BEING NO FURTHER BUSINESS, dN MOTION MADE, SEC- ONDED AND CARRIED, THE BOARD ADJOURNED AT 12:30 O'CLOCK P.M. ATTEST: 401 CLERIC 14,26,14,;%./ CHAIRMAN