HomeMy WebLinkAbout9/2/1977FRIDAY, SEPTEMBER 2, 1977
THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY,
FLORIDA, MET IPJ SPECIAL SESSION AT THE COURTHOUSE, VERO BEACH, FLORIDA
ON FRIDAY, SEPTEMBER 2, 1977, AT 2:00 O'CLOCK P. M. PRESENT WERE
WILLIAM C. WODTKE, JR., CHAIRMAN; ALMA LEE Loy, VICE CHAIRMAN; WILLARD
W. SIEBERT, JR.,; EDWIN S. SCHMUCKER; AND R. DON DEESON, ALSO PRESENT
WERE JACK G. JENNINGS, COUNTY ADMINISTRATOR; GEORGE G. COLLINS, JR.,
ATTORNEY TO THE BOARD OF COUNTY COMMISSIONERS; AND VIRGINIA HARGREAVES,
DEPUTY CLERK.
THE CHAIRMAN CALLED THE MEETING TO ORDER AND INFORMED THOSE
PRESENT THAT THIS MEETING IS HELD FOR THE PURPOSE OF MEETING WITH
MEMBERS OF URBAN DEVELOPMENT UTILITIES, INC., AND FARMERS HOME AD-
MINISTRATION TO DISCUSS A SOLUTION TO THE GIFFORD WATER PROBLEMS.
PRESENT REPRESENTING U.D.U. WERE FRED P LAIR, PRESIDENT,
MEMBERS OF THE BOARD OF DIRECTORS, LILLIE MAE MINNIS, VICTOR HART,
LEON YOUNG, AND CHARLES HERRING, ATTORNEY,
PRESENT REPRESENTING FHA WERE PAM THOMPSON, COUNTY SUPER-
VISOR, AND WILLIAM ELDRIDGE AND JERRY BALLARD FROM THE GAINESVILLE
OFFICE.
CHAIRMAN WODTKE STATED THAT HE AND THE COUNTY ATTORNEY MET
TUESDAY WITH REPRESENTATIVES FROM FHA AND DISCUSSED THE PROPOSAL THEY
MADE AT THE WORKSHOP MEETING MONDAY�AUGUST 29TH, THE CHAIRMAN NOTED
THAT HE HAS THE DEFINITE UNDERSTANDING FROM HEARINGS WE HAVE HAD IN THE
PAST AND RECENTLY THAT THE BOARD IS BEING ASKED TO SERVE THE ENTIRE
AREA OF GIFFORD WITH WATER. HE AGREED THIS IS A PRIME CONSIDERATION,
AND STATED HE WILL PRESENT TO THE BOARD FOR THEIR CONSIDERATION A
POSSIBLE PROPOSAL WE COULD MAKE TO FHA.
CHAIRMAN WODTKE FIRST REVIEWED WITH THOSE PRESENT THE PROPOSAL
MADE BY THE FHA ON MONDAY NIGHT AS FOLLOWS:
�VEW GRANT
II0 COUNTY ON Q MATCHING BASIS
FOR LINE & IANK
TOTAL WATER SYSTEM
NEW LQM (FOR IMPROVEMENTS)
TOTAL ATO IMPROVE WATER SYSTEM)
SEP 2 1977
$3854.300,00
- 365,000.00
� 20,3Q0,00
42,200,00
$-62'1500.00
r 415.
THIS PROPOSAL WOULD LEAVE THE FOLLOWING DEBT:
OLD DEBT $457,000,00
DELINQUENCY 143,.000.00
NEW LOAN 42,200.00
TOTAL DEBT $642,200.00
CHAIRMAN WODTKE EXPLAINED THAT ON THE ABOVE BASIS, FHA PRO-
POSED A RATE OF $9.75 AS THE AVERAGE RATE FOR 475 CUSTOMERS BASED ON THE
OLD DEBT. THE RATE ON THE NEW TOTAL DEBT WOULD AVERAGE $11,30,
CHAIRMAN WODTKE THEN PROPOSED THAT THE COUNTY PURCHASE U.D.U.
AND PRESENTED THE FOLLOWING FIGURES:
PURCHASE PRICE OF U,D,U $ . 75.,000.00
FMHA GRANT TO COUNTY 427,500,00
FMHA LOAN TO COUNTY 402,500.00
EDA GRANT 365,000,00
TOTAL $1,270,000,00
.SUMMARY:
TRANSMISSION LINES & STORAGE TANKS $ 670,000,04
IMPROVEMENTS & EXTENSIONS 525,000,00
PURCHASE PRICE 75,000,00
TOTAL $1,270,000,00
CHAIRMAN WODTKE PROPOSED THAT THE $75,000.40 PURCHASE PRICE
FOR U.D.U. BE PAID OUT OF FEDERAL REVENUE SHARING AND THE ONLY INDEBT-
EDNESS PLACED AGAINST THE SYSTEM WOULD BE THE $402,500.00 LOAN FROM
FHA. HE STATED.THAT THE COUNTY ENGINEERS, USING THE SAME CRITERIA AS
THE FHA, FIGURE THAT THIS WOULD RESULT IN AN AVERAGE RATE OF $8,85,
HE FURTHER NOTED THAT SHOULD THE COUNTY PURCHASE THE U.D.U, FRANCHISE,
THE FRANCHISE BOUNDARIES WOULD NO LONGER EXIST. CHAIRMAN WODTKE POINTED
OUT THAT THE DEBT REQUIREMENT IS A FIXED COST, BUT AS CUSTOMERS ARE
ADDED TO THE SERVICE IT WOULD LOWER THE RATE STRUCTURE,
CHAIRMAN WODTKE NOTED THAT FHA's PROPOSAL ADDRESSED ONLY
WATER AND THAT ONLY IN THE U.D.U. FRANCHISE AREA WHERE THERE ARE AL-
READY LINES AND USERS, THE COUNTY'S PROPOSAL,HOWEVER, WOULD COVER
BOTH WATER AND SEWER TO BE EXPANDED OVER THE ENTIRE AREA AS THE DEMAND
ARISES. THE CHAIRMAN NOTED THAT IF THE COUNTY'S PROPOSAL IS AGREED
TO BY ALL CONCERNED, IT WILL BE ABSOLUTELY NECESSARY TO ESTABLISH A
COMMITTEE TO REPRESENT THE GI.FFORD AREA AND HAVE THE SUPPORT OF THE
ENTIRE COMMUNITY TO HELP US MAKE DECISIONS ON WHERE TO EXPAND.
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SEP 2 1977
CHAIRMAN WODTKE ASKED IF ANYONE PRESENT WISHED TO MAKE ANY
COMMENTS.
WILLIAM ELDRIDGE OF FHA STATED THAT HE FEELS THAT THE COUNTY'S
PROPOSAL IS A GOOD PLAN AND HE WILL CHECK WITH HIS SUPERIORS ABOUT
THE PURCHASE PRICE AND LET THE COUNTY KNOW WITHIN TEN DAYS, HE CON-
TINUED THAT THE LOAN FUNDS MENTIONED WILL COME OUT OF THE ZQ MILLION
ALREADY OBLIGATED FOR THE COUNTY, HE AGREED THAT THIS IS A BETTER PLAN
THAN THE ONE PROPOSED BY FHA AS IN THEIR PLAN U.D.U. WAS LIMITED BY A
FRANCHISE AREA, BUT NOW THE COUNTY IS PLANNING TO SERVE ALL AREAS OF
GIFFORD THAT WANT THE SERVICE AND WHERE IT IS FEASIBLE TO SERVE.
CHAIRMAN WODTKE POINTED OUT THAT IF THE COUNTY OWNS THE
SYSTEM IT PUTS US IN A POSITION WHERE WE CAN PUT MONEY INTO THE SYSTEM
WHEN IT IS NEEDED, BUT WHEN IT IS OWNED BY A PRIVATE UTILITY COMPANY,
WE CANNOT DO THIS,
RALPH LUNDY, PRESIDENT OF THE GIFFORD PROGRESSIVE CIVIC LEAGUE,
STATED THAT IT IS IMPORTANT AT THIS TIME TO DETERMINE IF (I.D.U. IS GOING
TO ACCEPT THIS PROPOSAL BECAUSE WE HAVE TO BASE OUR DECISION ON WHAT
THEY ARE GOING TO DO.
CHARLES HERRING, ATTORNEY FOR U.D.U.", INFORMED THE BOARD THAT
U.D.U. HAS PREPARED A RESOLUTION IN GOOD. FAITH PREDICATED UPON CERTAIN
PRINCIPLES THAT HAVE BEEN REPRESENTED TO THEM BY THE PARTIES INVOLVED.
-HE STATED THAT MR. WODTKE HAS PRESENTED A VERY EXCELLENT PLAN THAT IS
WORKABLE, BUT NOTED THAT THERE ARE A LOT OF "IFS" INVOLVED, AND THE
RESOLUTION IS IN THE FORM IT IS BECAUSE THERE WERE SO MANY INTANGIBLES
AND UNKNOWNS WHEN IT WAS ADOPTED. HE THEN READ THE RESOLUTION IN WHICH
U.D.U. AGREES TO ACCEPT THE PURCHASE PRICE OF $75,000.00 SUBJECT TO
FHA APPROVAL.
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SEP 2 1977
RESOLUTION
Whereas, U.D.U. is a non-profit Corporation owning a water and sewer
franchise in Gifford, Florida granted by Indian River County, and
Whereas, The facilities have become ineffective to adequately service
its present membership because of environmental and economic changes, and
can not be maintained nor improved without additional funding, and
Whereas, U.D.U. has heretofor sought relief though intensive efforts to get
grants through Framers Home Administration, and have succeeded in arousing their
cooperation Via National News Media, culminating in a large loan -grant offered
to U.D.U. by the FNA and to provide the necessary matching funds for the county
under the crituia of the E.D.A., and
Whereas, The County has advised the Directors of U.D.U. that the County has
p e g d themselves to get water for all persons in Gifford within and without
the U.D.U. franchise area and advised the Directors that they would--Flkewise be
responsible to upgrade and expand the sewer system to encourage new customers
not now on the system, and new construction planned for the area to relieve
the deplorable housing; and further that they would commit additional funds if
necessary and additional loans to make a complete system hopefully to be
intergrated if possible into the sewer system of Vero Beach, and
The Board of Directors of U.D.U., relying upon representation of John Carver,
Bill Eldridge and Jerry Ballard of the Farmers Home Administration and William
Wodtke speaking on behalf of the County Commission that they would deligently
pursue completion the improvements at long last once and for ever of the
deplorable condition the sewer and water system exposed by the Washington Post
and CBS news, it is
Therefore, RESOLVED that the Board of Directors of U.D.U. do agree to recommend
to the membership of U.D.U. that the membership accept an offer of the County to
purchase U.D.U. for $75,000. subject to a contract to be negotiated within 90
days from the date hereof acceptable to U.D.U. and the County, which would
include the assumption by the County ofAall contracts, liabilities, and other
obligations of U.D.U. and approval of F timers Home Administration.
(red Plai c'
eA
J
resp ent pard of
Directors of U.D.U.
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301
SEP 1977
e
JAMES RICHARDSON OF GIFFORD ASKED IF THE RESOLUTION MEANS
THAT U.D.U. WILL SELL TO THE COUNTY, AND -CHAIRMAN WODTKE REPLIED THAT
U.D.U. IS ONLY SAYING THEY ARE WILLING TO IF CERTAIN CONDITIONS ARE MET.
ATTORNEY COLLINS THEN READ ALOUD THE PROPOSED COUNTY RESOLUTION.
MR. RICHARDSON INFORMED THE BOARD THAT THE PEOPLE OF GIFFORD
HAVE BEEN TRYING TO GET WATER FOR THE WHOLE AREA LONG BEFORE U.D.U.
EVEN CAME INTO EXISTENCE AND THEY ARE NOT NOW INTERESTED IN U.D.U.,
BUT WANT TO BE SURE THEY GET WATER FOR THE WHOLE GIFFORD AREA, NORTH
TO SOUTH, EAST TO WEST. HE POINTED OUT THAT A WATER LINE HAS BEEN RUN
FROM THE CITY TO THE NEW HOSPITAL AND ALL THE WAY TO THE MOORINGS, BUT
THE PEOPLE OF GIFFORD ARE STILL IN THE SAME RUT AND LEFT WAITING, EVEN
THOUGH THEY PAY TAXES AND THERE IS MONEY TO BE GRANTED FOR UNFORTUNATE
AREAS. HE POINTED OUT THAT THEY ARE PAYING TAXES FOR EVERYTHING BUT
MEDICINE AND MILK.
CHAIRMAN WODTKE NOTED THAT IT WILL BE EXTREMELY IMPORTANT TO
HAVE THE COOPERATION OF ALL INTERESTED PARTIES TO WORK TOWARDS IMPLE-
MENTING THE PROPOSED SYSTEM IN A UNIFORM WAY THAT IS AGREEABLE TO ALL,
VICTOR HART OF THE BOARD OF DIRECTORS OF 1l.D.U. NOTED THAT
THEY HAVE BEEN WRESTLING WITH THIS PROBLEM A LONG TIME. HE SPOKE
OF THE MANY MEETINGS HELD AND STATED THAT AFTER COMPARING THE PROPOSALS
PRESENTED, HE FELT U.D.U. HAD NO ALTERNATIVE BUT TO ACCEPT THE COUNTY'S
PROPOSAL WHICH WOULD RESULT IN CHEAPER RATES FOR THE CITIZENS OF GIFFORD.
MR, HART STATED THAT THIS IS THE FIRST TIME SINCE 1968 THAT EVERYONE
HAS SAT DOWN TOGETHER, (FHA, UDU, THE COUNTY, AND THE ENGINEERS) AND
REALLY DISCUSSED THE PROBLEM, AND HE EXPRESSED THE HOPE THAT WE COULD
START FROM HERE AND GO ON TOGETHER TO IMPROVE THE CONDITIONS AND CORRECT
THE PROBLEMS.
MABON SNELL SPOKE FOR THE GIFFORD .JAYCEES AND STATED THAT
THEY FEEL THE COUNTY'S PROPOSF-D PLAN IS A GOOD ONE. HE THANKED THE
BOARD FOR WORKING OUT A WAY TO GET WATER FOR ALL THE PEOPLE AND STATED
THAT ALTHOUGH THEY ARE IMPATIENT, WITH GOOD REASON, THEY ARE NOT UN -
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SEP 2 197
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M.
REASONABLE. HE ASKED THAT THE BOARD USE ALL OF ITS ABILITY, KNOW-HOW,
EXPERIENCE AND FORESIGHT TO•PROVIDE THE PEOPLE OF GIFFORD WITH WATER
SERVICE AS FAST AS POSSIBLE.
REVEREND BROWN OF THE GIFFORD PROGRESSIVE CIVIC LEAGUE SAID
HE.FELT THAT U.D.U. TURNING THEIR SYSTEM OVER TO THE BOARD IS THE
BEST THING THEY COULD HAVE DONE. HE WISHED TO BE ASSURED THAT THERE
WERE OTHER SOURCES FOR FUNDS TO IMPROVE AND EXPAND THE SYSTEM IF THE
BOARD SHOULD RUN OUT OF FUNDS.
CHAIRMAN WODTKE ASSURED HIM THAT THERE WILL BE SUFFICIENT
FUNDS MADE AVAILABLE. HE STATED THAT WE HOPE TO BE ABLE TO WORK ALONG
ON THIS ON THE SAME CONSTRUCTION TIMING AS BUILDING THE LINE TO GIFFORD,
AND POINTED OUT THAT WHEN WE HAVE A COMMITMENT FROM FHA WE CAN TAKE
IT TO THE BANK IMMEDIATELY AND GET THE MONEY TO PROCEED.
REVEREND BROWN STATED THAT HIS ORGANIZATION HAS FAITH IN THE
BOARD AND WILL WORK CLOSELY WITH THEM.
JIM HOLT, PRESIDENT OF THE LOCAL BRANCH OF THE N.A.A.C.P.
STATED HIS APPROVAL OF THE PROPOSAL, BUT ALSO FELT THE PEOPLE WHO HAVE
WORKED SO HARD WITH U.D.U. DESERVE A HAND FOR THEIR EFFORTS. THE
BOARD AGREED.
REVEREND COOPER STATED THAT HE IS CONCERNED NOT ONLY ABOUT
THE WATER SYSTEM BUT ALSO THE SEWER SYSTEM AND ASKED IF THE BOARD
INTENDS TO ELIMINATE THE PRESENT SEWER SYSTEM OR JUST UPGRADE IT.
CHAIRMAN WODT.KE INFORMED HIM THAT WE HAVE AN ESTIMATE OF
$150,000 TO PUT THE PRESENT SYSTEM IN A-1 CONDITION. HE NOTED THAT
WE PROBABLY HAVE SOME OPTIONS ALONG THESE LINES AND THERE IS A
POSSIBILITY THAT A NEW PLANT WILL HAVE TO BE PUT IN. WE DO NOT KNOW
ALL THE FIGURES INVOLVED AS YET,
REVEREND PETERSON OF THE AFRO-AMERICAN COUNCIL OF CHURCHES
THANKED THE BOARD FOR THEIR QUICK REACTION TO SOLVE ONE OF THE.GREAT
PROBLEMS IN THE GIFFORD AREA, HE STATED THAT THE PEOPLE OF GIFFORD
ARE NOT OUT BEGGING FOR ANYTHING, AND WANT TO WORK AND PURCHASE WHAT
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THEY NEED, BUT FEEL THEY SHOULD HAVE WHAT IS RIGHTFULLY THEIRS AND
WHAT EVERYONE ELSE -ALREADY HAS. HE STATED THAT IT IS A GOOD FEELING
TO BE ABLE TO DISCUSS THINGS TOGETHER AND COME UP WITH A WORKABLE
SOLUTION.
FRED PLAIR, PRESIDENT OF U.D.U. SAID HE TRUTHFULLY FELT THAT,
U.D.U. SHOULD NEVER HAVE EXISTED, BUT FEELS WE NOW HAVE AN OPPORTUNITY
TO GET WATER AND SEWERAGE FOR EVERYBODY IF EVERYONE WORKS TOGETHER
IN EARNEST. HE THANKED FHA AND THE COUNTY COMMISSIONERS AND SAID HE
FEELS U.D.U. WILL NOW BE IN GOOD HANDS,
COMMISSIONER Loy SPOKE FOR THE BOARD IN COMMENDING THE
BOARD OF DIRECTORS OF U.D.0 AND EXPRESSED THANKS TO THE REPRESENTATIVES
OF FHA AND CHAIRMAN WODTKE AND ATTORNEY COLLINS, WHO HAVE ALL WORKED
COUNTLESS HOURS TRYING TO EVOLVE A SOLUTION TO THIS PROBLEM, SHE STATED
SHE FELT THE PROPOSED RESOLUTION IS A GREAT STEP FORWARD FOR ALL.
ON MOTION BY COMMISSIONER Loy, SECONDED BY COMMISSIONER
SCHMUCKER,THE BOARD UNANIMOUSLY AND ENTHUSIASTICALLY ADOPTED
RESOLUTION No, 77-90.
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•�lc�lc F'aGc 49.
SEP 2 1977
RESOLUTION NO. 77-90
WHEREAS, there exists in the Gifford Area deplorable
water and sewer conditions; and
WHEREAS, in the public interest all parties involved must
cooperate in order to solve the utility problem by providing
treated water and sewer services to the people of Gifford; and
WHEREAS, in the interest of meeting and serving the needs
of the residents in the Gifford Area, Indian River County extends
the following proposal to U.D.U. and Farmers Home Administration:
(1) Indian River County will purchase the existing water
and sewer facilities owned by U.D.U. (Urban Development
-Utilities, Inc.) for a purchase price of SEVENTY FIVE
THOUSAND ($75,000.00) DOLLARS (free and clear of all en-
cumbrances), with additional funding from.Indian River
County subsequent to .(a) Farmers Home Administration issuing
a grant to Indian River County for approxiately FOUR HUNDRED
TWENTY SEVEN THOUSAND FIVE HUNDRED ($427,500.00).DOLLARS;
(b) Farmers Home Administration loaning to Indian River County
both by guarantee of short-term or interim financing and a
subsequent bond issue of approximately FOUR HUNDRED TWO
THOUSAND FIVE HUNDRED ($402,500.00) DOLLARS: and (c) approval
by EDA of grant funds of approximately THREE HUNDRED SIXTY
FIVE THOUSAND ($365,000.00) DOLLARS.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COM-
MISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, that upon approval of
grant funds from Farmers Home Administration in the amount of ap-
proximately FOUR HUNDRED'TWENTY SEVEN THOUSAND FIVE HUNDRED ($427,500.00)
DOLLARS and loan funds from Farmers Home Administration in the
approximate amount of FOUR HUNDRED TWO THOUSAND FIVE HUNDRED `
($402,500.00) DOLLARS, Indian River County will purchase the U.D.U.
sewer and water assets, free and clear of all encumbrances and
thereafter upgrade and provide sewer and water facilities and service*
as they exist and as to be expanded to the residents in the Gifford
Area; and
J 492
S E P 2 1977
H
BE IT FURTHER RESOLVED, that the residents in the Gifford
area will initially benefit by the County►s.proposal to the extent
of approximately ONE MILLION TWO HUNDRED SEVENTY,THOUSAND ($1,270,000,00)
DOLLARS in improvements and expansion to both' -sewer and water facilities
determined as follows:
PURCHASE PRICE $ 75,000.00
FmHA GRANT TO COUNTY 427,500.00
• FnHA LOAN TO COUNTY 402,500.00
EDA GRANT 36'5, 000.00
TOTAL $1,270,000.00
SUMMARY:
TRANSMISSION LINES AND
STORAGE TANK $ 670,000.00
n1PROVEMENTS AND EXTENSIONS
WITHIN GIFFORD AREA 525,000.00
PURCHASE PRICE
75 '000.00
TOTAL $1,270,000.00
BE. IT FURTHER RESOLVED, that the clear intent of this
Resolution is to solve a severe social and health problem within
Indian River County through the cooperation of all involved parties
and agencies.
This Resolution shall become effective as of the 2nd'
day of*September , 1977.
BOARD OF COUNTY COMMISSIONERS OF
INDIAN RIVER COUNTY, FLORIDA
By
Wil iam C. Wo t e, Jr.
Chairman
• ATTEST:
Freda Wright
Clerk
I
SEP 2 1977
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PACT
423
SEP 2 1977
THERE BEING NO FURTHER BUSINESS, ON MOTION MADE, SECONDED AND
CARRIED.- THE BOARD ADJOURNED AT 3;25 O'CLOCK P',M,
ATTEST;
1.• T
CLERK CHAIRMAN
10
SEP 2 1977
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