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HomeMy WebLinkAbout7/7/1982Wednesday, July 7, 1982 The Board of County Commissioners of Indian River County, Florida, met in Regular Session at the County Commission Chambers, 1840 25th Street, Vero Beach, Florida, on Wednesday, July 7, 1982, at 8:30 o'clock A.M. Present were Don C. Scurlock, Jr., Chairman; Alfred Grover Fletcher, Vice Chairman; Dick Bird; Patrick B. Lyons; and William C. Wodtke, Jr. Also present were C. B. Hardin, Acting Administrator; L. S. "Tommy" Thomas, Community Services Director; Gary Brandenburg, Attorney to the Board of County Commissioners; Jeffrey K. Barton, Finance Director; Dan Fleischman, Bailiff; and Virginia Hargreaves and Janice Caldwell, Deputy Clerks. The Chairman called the meeting to order. The Reverend Jim Newsome, First Baptist Church, gave the invocation, and Acting Administrator Hardin led the Pledge of Allegiance to the Flag. ADDITIONS TO AGENDA The Chairman asked if there were any additions to the Agenda. Commissioner Lyons requested adding a discussion regarding the County Administrator. ON MOTION by Commissioner Lyons, SECONDED by Commissioner Wodtke, the Board unanimously agreed to add a discussion regarding the County Administrator as an emergency item, as requested by Commissioner Lyons. Attorney Brandenburg requested adding an item regarding a response that is needed to a letter recently received from the Department of the Army concerning Beach J U L 7 1982 Boor 50 FAU 121 J U L 7 1992oa 50 FAU12� 1 Erosion. A resolution concerning Beach renourishment is presently on the Agenda - Item 14-F. ON MOTION by Commissioner Lyons, SECONDED by Commis"ioner Bird, the Board unanimously agreed to add the emergency item concerning a response to the letter from the Department of the Army, and is to be considered with Item 14-F. Commissioner Bird requested adding an item, under Parks & Recreation, regarding a $500 chlorination system for Blue Cypress Lake. ON MOTION by Commissioner Bird, SECONDED by Commissioner Wodtke, the Board unanimously agreed to add the emergency item regarding Blue Cypress Lake, as requested by Commissioner Bird. Jim Davis, Public Works Director, requested adding an item regarding approval to advertise for a public hearing consider a resolution, and to consider a primary assessment roll, for three petition paving projects. ON MOTION by Commissioner Fletcher, SECONDED by Commissioner Lyons, the Board unanimously agreed to add the emergency item as requested by Mr. Davis. APPROVAL OF MINUTES The Chairman asked if there were any additions or corrections to the Minutes of the Regular Meeting of June 2, 1982. Commissioner Fletcher commented that pages 30 through 36 were missing. The Recording Secretary advised him that the pages were omitted on purpose as they were lengthy, but would be made a part of the Official Record, as indicated at the bottom of page 29. Commissioner Fletcher referred to page 46 at line 32; and page 49 at line 19, and requested that the word "Florida" be changed to "Floridan." ON MOTION by Commissioner Lyons, SECONDED by Commissioner Wodtke, the Board unanimously approved the Minutes of the Regular Meeting of June 2, 1982, as amended. The Chairman asked if there were any additions or corrections to the Minutes of the Special Meeting of June 9, 1982. ON MOTION by Commissioner Lyons, SECONDED by Commissioner Wodtke, the Board unanimously approved the Minutes of the Special Meeting of June 9, 1982, as written. The Chairman asked if there were any additions or corrections to the Minutes of the Regular Meeting of June 16, 1982. MOTION was made by Commissioner Lyons, SECONDED by Commissioner Wodtke, that the Board approve the Minutes of the Regular Meeting of June 16, 1982. Commissioner Fletcher referred to page 5, part three, and noted that the "yes" and "no" blocks were blank. J U L 7 1982 3c50 m� J U L 7 1982 5o FAu I 124 Administrative Aide Forlani explained that the appropriate block was filled in before the application was mailed to the Department of Revenue. A copy of the completed application will be made a part of the Official Record. ' Commissioner Fletcher referred to page 39, line 12, and requested that "north of State Road 60." be added after the words "I-95." Commissioner Fletcher referred to page 45, and questioned the word "affirm" in the Motion. Lengthy discussion ensued regarding the Motion. Chairman Scurlock asked the Attorney how he would go about not voting for approval of the minutes since he was not present, nor was there a complete tape available for him to review. He continued that the entire portion about beach erosion was somehow erased, or not recorded. When he came in to try to listen to the tapes, since he was out of town for that meeting, he was unable to do so; therefore, he was in a dilemma. Attorney Brandenburg advised him that voting to approve the minutes on his part was an indication that he believed the staff had correctly indicated what occurred at that meeting; not necessarily that he was present, and verified himself that each word was actually said at the meeting. The law states that each member of the Board will vote on each item that is presented to them unless they have a conflict. The Attorney continued that he does not have a conflict, so he would have to vote on this item - unless he would like to pass the gavel and leave for awhile. The Chairman stated that was what he chose to do, turned the gavel over to the Vice Chairman, and left the room. Commissioner Wodtke asked how Vice Chairman Fletcher would like to change the wording of this Motion. Vice Chairman Fletcher stated his recollection of the Motion did not include the affirmation of any previous resolution, and that is how he interpreted the wording. Commissioner Lyons commented that this was a moot question. When Vice Chairman Fletcher voted, he voted against it any way, and Commissioner Lyons wondered what he was trying to accomplish. Vice Chairman Fletcher just wanted to make sure what he was actually voting against. Commissioner Bird asked Commissioner Wodtke if the Motion was accurate. Commissioner Wodtke stated he did not recall exactly if the word "affirm" was used, but he did not care if the Vice Chairman wanted to strike the word "affirm." Commissioner Bird believed that the Motion did read very closely to the discussion. It was said that the Board had to affirm, or reconfirm, our position with the Corps of Engineers' plan, and at least take this up to the point of some funding consideration where the Board could make a final decision on it. Commissioner Lyons suggested the matter be run to the end of the road; then the Board could make up its mind. The Recording Secretary checked the tape and the Motion, reviewed in several discussions, was as follows: J U L 7 1982 "MOTION was made by Commissioner Wodtke, SECONDED by Commissioner Bird, that the Board of County Commissioners and the City Council, reaffirm and confirm their position with the Corps of Engineers' plan; and that the Board send letters to the Secretary of the Army and Secretary Watts to ask that they expedite developing a funding formula for the beach restoration project for Indian River County in order for the County to make a 5 c 0 ME142015 J U L 7 1982 50 12,6 final determination of the methods of funding on the local level." The entire portion of the Beach & Shores Restoration-& Preservation Committee Report that was recorded at that meeting, consisting of seven pages, is on file in the Office of - the Clerk. THE VICE CHAIRMAN CALLED FOR THE QUESTION. It was voted on and carried with a vote of 3 to 1, with Vice Chairman Fletcher voting in opposition, and with Chairman Scurlock out of the room. CLERK TO THE BOARD A. Tax Sale Certificate ON MOTION by Commissioner Lyons, SECONDED by Commissioner Wodtke, the Board unanimously approved Tax Sale Certificate No. 818 in the amount of $21.51 for Duane Sudbrock. B. Reserve for Contingencies - Balances The following memorandum is made a part of the record, with no action necessary by the Board: July 1, 1982 To: Board of Cpunty Commissioners From Jeffrey K. Barton, Finance Director Subject: Balances ip Reserve for Contingencies The following are the balances in the reserve for contingencies: Fund ,geginning Balance Present Balance General Fund $371,472. $302,504. Road & Bridge 53,700. 18,700. M.S.T.u.* 165,065. 170,827. *Reason for increase is because the $480,125 reserved for the repayment of the notes at First Bankers was released then repledged for the balance of the constr0ction pontract on South County Water in the amount of $425,809. C. Courthouse & Administration Building Renovation Account The following memorandum is made a part of the record, with no action necessary by the Board: July 1, 1982 To: Board of County Commissioners From:(Jeffrey K. Barton, Finance Director Subject: Balance available in Courthouse & Administration Building Renovation Account. Per your request the following is the balance available in the renovation fund for the Courthou$e & Administration Building: Cash on Hand r $187,561. Outstanding Payment Request from Reinhold Const. on Courthouse Annex (108,013) Subtotal 79T8 Less: Retainage (2,000) Balance for disputed bills and additional projects. $77,548. CONSENT AGENDA . Commissioner Fletcher requested that Items A, B, C, and D be removed from the Consent Agenda. E. Reports on File The following report is on file in the Office of the Clerk: JUL 7 1992 Report of Juveniles in Jail — May, 1982 7 50 fmz:127 J U L 7 1982 0 50 r �r 128 F. Borrow Pit Water Quality Analysis - Addendum The Board reviewed the following letter from Post, Buckley, Schuh & Jernigan, Inc.: FM W. Post, Buckley, Schuh & Jernigan, Inc. i CONSULTING ENGINEERS and PLANNERS 889 NORTH ORANGE AVENUE, ORLANDO, FLORIDA 32801-1088 • 305/423-7275 • TELEX 808435 June 4, 1982 Mr. David Greene Acting County Administrator Indian River County 1840 25th Street Vero Beach, FL 32960 Dear David: )r 101 -vJ NO Re: ,R�9 Re: 'Specific Services Addendum - Borrow Pit Water Quality Analysis - June 1982 DER has advised us that they will require that the June sampling and analysis program at the Indian River County Sanitary Landfill include the analysis of a sample from the borrow pit. As you know, our Specific Services Addendum for the June sampling and analysis program at the landfill only included test- ing and analysis of the three (3) monitoring test wells at the= -site. The enclosed Specific Services Addendum provides for the analysis of the addi- tional sample from the borrow pit. No additional field sampling costs are in- cluded in this Addendum (only laboratory analysis) since this sample can be taken at the same time the three (3) monitoring well samples are taken. Please execute this Specific Services Addendum, retain the top (white) copy. for your files, and return the other copies to us. Please call me with any questions. Very truly yours, POST, BUCKLEY, SCHUH & JERNIGAN, INC. Dan R. Morrical, P.E. Project Manager ON MOTION by Commissioner Lyons, SECONDED by Commissioner TRodtke, the Board unanimously approved the Execution of the Specific Services Addendum - Borrow Pit Water Quality Analysis - June, 1982. r-ubtq 0UU1%lVy9 CA01 eua t cx vLI I iiy.ar i, o0 l%. IRRMINXM. SERVICES ADDENDUM CONSULTWEERS antl PLANNERS - PROJECT NUMBER--_-_ 07 . 3191 MAGUIRE BOULEVARD ORLANDO, FLORIDA 32803 SHORTTITLE Borrow Pit Analysis -June 1932 (305)894-0041 NOTICE TO PROCEED FROM (NAME/DATE): N. 889 Orange Avenue Orlando, FL 32801 - (305)423-7275 { THIS ADDENDUM to the Agreement dated April 91, 1982 between Post, Buckley, Schuh & Jernigan, Inc., (PBS&J) and the Client identified herein is for the l4AiXiXGKdMI Services described in Item 5 of this Addendum. 1.CLIENT: Indian River County Board of Commissioners 2. ADDRESS: 1840 25th Street 3. TEU PHONE Vero Beach, Florida 32960 _ NUM`bER: ' (305)567-8000 upon 4. PBS&J shall begin work promptly on the requestedXtXURMW Services,kW&%X`XIL;r�(k.W1A)iW8KXIXe X4(1I0(4GdhXX�i&�O�I�XrI(74Xv(�(�X+O receipt of a fully executed copy of this Addendum. (Client retain white copy, return remaining copies). S. Description ofAWIMDMK1 Services to be provided by PBS&J (attach additional pages, if necessary): The ENGINEER shall.conduct testing and analysis of a surface water sample obtained from the borrow pit located at the Indian River County Sanitary Landfill during the month of June. This sample shall be analyzed at the request of John McManamy with the Department of Environmental Regulation (DER) for the following parameters: o BOp Conductivity ° Cadmium ° CODS ° pH Copper ° Nitrate 0Iron 0Total Coliform Bacteria ° Nitrite 0Lead 0Temperature (at time of ° Chloride 0Chromium sampling) The ENGINEER shall furnish i a copy of the laboratory analytis reports to the County and DER after the analysis is complete. 6. The compensation to be paid PBS&J for providing the requested services'Ghall be: ❑ A. Direct personnel expense plus a surcharge of 150%, plus reimburshble costs. See explanation on reverse side. fl B. A Lump -Sum charge of $___2.00. -OD ❑ C. Unit Cost/Time Charges identified in Exhibit A, attached. ❑ D. In accordance with the provisions for Additional Services compensd1lon set forth' In the aforemen- tioned Agreement. IN WITNESS WHEREOF, this Addendum is accepted this 7th day of .TILL v , 19 X32—, subject to the terms and conditions of the aforementioned Agreement and the provisions on the reverse hereof. POST BUCKL Y 0HUH & J�RNIGN iNC.: CLIENT: � - SiGNED: SIGNED:— TYPED IGNED: TYPED NAME: T)on C _ Scurl4 TYPED NAME• Kevi J. Cool ey . E. TITLE: Chairman, BoarAof - ssionersTITLE:-14ana99-e-._r.-�a''c77ilid & Hazardous Waste DAT.4,. ,y DATE: Approved as io form SIGN WITH BALL POINT PEN and! Icga! si '.peri iy but[ .: Ite-bent; Yellow -PBSU; Pink -Project Manager; Gold -Acct. Proposal File JUL " 7 19 2 Box 50 PA; -t129 . 9 rvices' J U L 7 1992 o� '50 FAac 130 G. Sanitary Landfill Sampling & Analysis The. Board reviewed the following letter dated June 14, 1982: P Pest, Buckley, Schuh & Jernigan, Inc. CONSULTING ENGINEERS and PLANNERS I 889 NORTH ORANGE AVENUE, ORLANDO, FLORIDA 32801-1088 a 305/423-7275 • TELEX 808435 RECEIVED June 14, 1982 JUN 15 1982 Mr. C.B. Hardin 3uN�g82 N Acting County Administrator 00 >v Indian River County�co�s°"1o` ti 1840 25th Street Vero Beach, FL 32960 Dear Mr. Hardin: Re:- Revised Specific Service Addendum for the June Water Quality Sampling and Analysis at the Indian River County Sanitary Landfill Some wording changes to clarify which wells are to be sampled have been made in the Specific Services Addendum for the June 1982 sampling and analysi-s of groundwater at the Indian River County Sanitary Landfill transmitted to Mr. David Greene on April 27, 1982. These changes are reflected in the enclosed revised version. Please review and execute this revised Specific Services Addendum as soon as possible, retain the top (white) copy for your files, and return the other copies to us. We also request that the partially executed addendum sent with the April 27th transmittal be voided and returned to us. Please contact me with any questions. Very truly yours, POST, BUCKLEY, SCHUH & JERNIGAN, INC. r Dan R. Morrical , P. E. Project Manager ON MOTION BY Commissioner Lyons, SECONDED by Commissioner Wodtke, the Board unanimously approved the Execution of Specific Services Addendum for the June Water Quality Sampling and Analysis at the Indian River County Sanitary Landfill. • •• Oil.?1HA,ffJ,WAL Mr -111 lr"Zi ALPIUM VLYUM �fit t i05 ami r -i nruNu tai 3191 MAGUIRE BOULEVARDPROJECTNUM13ER _06.9-007.m ORLANDO, FLORIDA 32803 SHORT TITLE—Land fiI 1_ Sampl ing-June_ 1982 (305)894-0041 N. 889 Orange Avenue NOTICE TO PROCEED FROM (NAME/DATE): • Orlando, FL 32801 (305)423-7275 THIS ADDENDUM to the Agreement dated Apri 1 21 , • 1982 between Post, Buckley, Schuh & Jernigan, Inc., (PBS&J) and the Client identified herein Is for theXX+rXr9GI<3SU(Services described In Item 5 of this Addendum. 1. CLIENT: Indian River County Board of Commissioners 2. ADDRESS: 1840 25th Street 3. TELEPHONE Vero Beach, FL 32960 NUMBER: (305)567-8000 upon 4. PBS&J' shall begin work promptly on the requested ;�MXXXI Servicer, �x�(I��r}(cif{�Q�t�i6�ii46;6)(tXrX�4YDJa>Srii receipt of a fully executed copy of this Addendum. (Client retain white copy, return remaining copies). 5. Description of A 99KOU Services to be provided by PBS&J (attach additidnal pages, if necessary): The ENGINEER shall conduct testing and analysis of groundwaters at the Indian River County Sanitary Landfill during the month of June 1982. This sampling and analysis shall be conducted in accordance with the regulations of the De- partment of Environmental Regulation (DER). All samples shall be analyzed for the following parameters: ° BOD ° Conductivity ° Cadmium • COD pH ° Copper ° Nitrate 0Iron 0Total Coliform Bacteria ° Nitrite ° Lead 0Teif1perature (at time of ° Chloride ° Chromium t saglpling) At the time of sampling, the depth of the groundwater surface from the ground surface will be recorded. The wells to be sampled shall tie as follows: Well PA aWell #2A Well #3A The ENGINEER shall furnish a copy of the laboratory analyllis reports to the County and DER after the analysis is complete. 0 6. The compensation to be paid PBS&J for providing the requested services lihali be: ❑ A. Direct personnel expense plus a surcharge of 150%, plus relmburshble costs. See explanation on reverse side., ® B. A Lump -Sum charge of $ 1,050, 00 . ❑ C. Unit Cost/Time Charges Identified in Exhibit A, attached. ❑ D. In accordance with the provisions for Additional Services compensation set forth- in the aforemen- tioned Agreement. IN WITNESS WHEREOF, this Addendum Is accepted this 7th day of July , 19 __$2__, subject to the terms and conditions of the aforementioned Agreement and the provisions on the reverse hereof. CLIENT: POST, SIGNED: SIGNE TYPED NAM TYPEE • TITLE er TITLE: DATE: DATE: Approved as to form 1 SIGN WITH BALL POINT PEN and IC91i}yf+iIr- i on:. hit® -Cl Yellow -PBS&J; Pink -Project Manager; Gold -Acct. Proposal Flle JUL �7 198 ce_I U- ro 50 132 A. Hurricane Evacuation Plan MOTION was made by Commissioner Lyons, SECONDED by Commissioner Wodtke, that the Board authorize the Chairman to sign the updated Hurricane Evacuation Plan. Commissioner Fletcher stated that there was no mention made in the organizational structure for the North County Fire Department or Advisory Board personnel. Also, Commissioner Fletcher believed some consideration should be given, perhaps, to creating a threshold as far as the discussion of what, when and who makes the decision, come time for evacuation. Those were the only items Commissioner Fletcher wished to have in the record. THE CHAIRMAN CALLED FOR THE QUESTION. It was voted on and carried unanimously. B. Indian Lakes Condominiums - Site Plan Extension Request The Board reviewed the following memorandum from Art Challacombe dated June 25, 1982: TO: The Honorable Board of County Commissioners DATE: June 25, 1982 THROUGH: C. B. Hardin, Jr., Ph.D. Acting County Administrator SUBJECT: DEPARTMENT HEAD CONCURRENCE: ' r Patrick Bruce King OLS e_� FILE: IRC -80 -SP -129,#634 EXTENSION OF SITE PLAN APPROVAL FOR INDIAN LAKES CONDOMINIUMS FROM: Art Challacombe REFERENCES: Letter from Bryon T. Cooksey Planning Division Mgr, to Patrick Bruce King, dated June 24, 1982. DESCRIPTION AND CONDITIONS: On July 23,-1982, the subject site plan received approval from the Planning and Zoning Commission. Indian Lakes Condominiums is a proposed 198 multi -family development on 17.5 acres. The density is 11.3 units/acre. The reasons given for the request for a six month extension of site plan approval are: 1) "Adverse econcomic conditions." 2) "High interest notes in the construction loan industry." ANALYSIS: Site plan approval terminates after one year if construction of the approved plan has not begun. Extensions may be granted by the Board of County Commissioners at its discretion. The site of the proposed multi -family development is designated LD -2 (up to 6 units/acre) in the Comprehensive Plan. The proposed development exceeds this density, however, the Compre- hensive Plan states, "Projects which have received site plan or subdivision approval at the date of adoption of this Plan shall be considered in conformity with the Plan." In addition, the proposed development met the regulations which were in effect at the time of site plan approval. The site is zoned R-3, Multi -Family Residential (15 units/acre). RECOMMENDATION: Staff recommends approval of the request for a six month ex- tension -for Indian Lakes Condominiums. J U L 7 1992 MOTION was made by Commissioner Lyons, SECONDED by Commissioner Wodtke, that the Board approve the request for a six month extension of the site plan approval for Indian Lakes Condominiums. 13 J U L V992 8.40K 50 wu 1.34 Commissioner Fletcher pointed out that this site plan approval does exceed the density of the Land Use Plan; in fact, all three extension requests for site plan approval in the Consent Agenda exceed the densities of the Land Use Plan. A brief discussion followed about the period of time for extension of site plan approvals. Commissioner Lyons felt the policy had been for one extension only. THE CHAIRMAN CALLED FOR THE QUESTION. It was voted on and carried with a vote of 4 to 1, with Commissioner Fletcher voting in opposition. C. Site Plan Approval Extension Request for South Winds, The Pointes, and The Trellises The Board discussed the following memorandum dated June 18, 1982: TO: The Honorable Board of DATE: June 18, 1982 County Commissioners THROUGH: C.B. Hardin, Jr.,Ph.D. Acting County Administrator SUBJECT: DEPARTMENT HEAD CONCURRENCE: 3aatt_rigc;Vg FILE: IRC -81 -SP - 108, #662,109, #663, and 110, #663 EXTENSION OF SITE PLAN APPROVAL FOR: 1) SOUTH WINDS: 2) THE POINTS: AND 3) THE TRELLISES; ALL LOCATED'IN THE MOORINGS FROM: Art Challacombe REFERENCES: Letter from Dorothy H. Planning Division Mgr. Hudson to Art Challacombe, dated June 15, 1982. DESCRIPTION AND CONDITIONS: On October 22, 198.1, the subject site plans received approval of the. Planning and Zoning Commission. Southwinds is a proposed 107 unit multi -family development on 13.55 acres. The density will be 7.9 units/acre. The Points is a proposed 55 unit multi -family development on 4.8 acres. The density will be 11.36 units/acre. The Trellises is a proposed 62,000 square foot retail sales/ office complex. The reasons given for the request for a one year extension of site plan approval are: 1) "The poor economic climate." 2) "Our architects have not progressed to a point of producing final construction drawings." ANALYSIS: Site plan approval terminates after one year if construction of the approved plan has not begun. Extensions may be granted by the Board of County Commissioners at its discretion. The sites of the proposed multi -family developments are designated LD -1 (up to 3 units/acre) in the Comprehensive Plan. The proposed developments exceed this density, how- ever, the Comprehensive Plan states, "Projects which have received site plan or subdivision approval at -the date of adoption of this Plan shall be considered in conformity with the Plan." It should also be noted that the overall density within the Moorings is approximately 2 units/acre. The site of the proposed commercial development is in a commercial node and is zoned C-lA. RECOMMENDATION: Staff recommends a one year extension of site plan approval: be granted for Southwinds, The Points and The Trellises. ON MOTION by Commissioner Wodtke, SECONDED by Commissioner Bird, the Board, by a vote of 4 to 1, with Commissioner Fletcher voting in opposition, approved a one year extension of the site plan approval for South Winds, The Pointes, and The Trellises. D. Site Plan Approval Extension Request for Surf & Racquet Club The Board next considered the following memorandum dated June 10, 1982: J U L 7 1982 15 J U L 71992 TO: The Honorable Board of County Commissioners THRU: C. B. Hardin, Jr. Ph. D. Acting County Admin. DATE: June 10, 1982 00K, 50, PAU tm FILE: IRC -8I -SP -36,#644 SUBJECT: RENEWAL OF SITE PLAN APPROVAL FOR THE SURF AND RACQUET CLUB FROM: Dennis Ragsdale REFERENCES: Letter from Robert A. Cairns Planner to Dr. C. B. Hardin, dated June 2, 1981. DESCRIPTION AND CONDITIONS: On April 3, 1981, Robert A. Cairns submitted a site plan application for approval to develop 69 multi -family dwelling units. The application was approved by the Planning and Zoning Commission in their regular meeting held on June 11, 1981. The approval was appealed by the Vero Beach Civic - Association, Inc., Mr. John Morrison and Mr. Norman Badenhop. The decision of the Planning and Zoning Commission was upheld by the County Commission on August 19, 1981. The applicant is requesting a renewal of site plan approval. The reasons given for this request are: 1) The applicant has been waiting on the North Beach Water Company Franchise to be approved; and 2) Construction has been delayed because of the very slow market for presales due to high interest rates and a general economic slowdown. ANALYSIS: Site plan approval terminates after one year if construction of the approved plan has not begun. Renewal of the approval would allow the applicant an additional year to begin con- struction. Since the Planning and Zoning Commission's decision of approval • was appealed, the date the applicant was permitted to proceed with development was on August 19, 1981, when the County Commission upheld the approval. Renewal would give the applicant until August 19, 1983, to begin construction. The site of the proposed development is designated LD -2 (up to six units/acre) in the Comprehensive Plan. The development proposal is for 7.6 units/acre. While this exceeds the density allowed in the Plan, the original approval was granted prior to the adoption of the Plan based on the current zoning which is R-2 (15 units/acre). The Comprehensive Plan states, "Projects which have received site plan or subdivision approval at the date of adoption of this Plan shall be considered in conformity with the Plan." RECOMMENDATION: Staff recommends renewal of the site plan approval be granted. ON MOTION by Commissioner Bird, SECONDED by Commissioner Wodtke, the Board, by a vote of 4 to 1, with Commissioner Fletcher voting in opposition, approved a one year extension of the site plan approval for the Surf and Racquet Club. COUNTY ADMINISTRATOR Chairman Scurlock reported that the Board had interviewed four candidates for the position of County Administrator and all four were outstanding. He added that Dr. Hardin now needed some direction from the Board. Commissioner Bird felt the Board should give Dr. Hardin its preferences; and give him a range to start negotiations regarding salary, moving expenses, and fringe benefits. Chairman Scurlock stated that his preference was Rick Fitzgerald, and they talked about a salary in the mid $40,000 range, a retirement plan, vehicle allowance, and a possible starting date of August 15th, if he was offered the position. Commissioner Lyons commented that his choice was Mr. Fitzgerald. Commissioner Fletcher stated that he was not over -enthusiastic about any one in particular. He believed that they went to government looking for an administrator, and he was interested in looking in the private sector for an executive -type individual. Commissioner Fletcher added he would like to find somebody with experience in both government and in the private sector. He pointed out that Mr. Gaynor had some experience outside the government sector and would like to see Mr. Gaynor's resume and Mr. Fitzgerald's resume kept, and continue receiving more resumes. JUL 7 1982 17 go u M J U L 7 1992 max 50 FbIGIc 138 Commissioner Bird stated that Mr. Fitzgerald was his first choice and suggested starting negotiations for his salary at $40,000 and go as high as $45,000. Commissioner Wodtke was impressed with Mr. Fitzgerald; s all four people were very good and all had a willingness to work. He thought the Board needed to have unified approval; the Board must get an administrator that it can fully support. Commissioner Wodtke was also very impressed with the man from Marianna, Mr. Wright. A brief discussion followed, and it was determined that there was a great deal of turn -over in the private sector, as the field was very competitive. Commissioner Lyons wondered if the five members of the Board of County Commissioners would ever get together, if one looked at the record. He pointed out that four of the Commissioners thought Mr. Fitzgerald was outstanding. Dr. Hardin commented that he would need the Board's direction concerning a maximum salary, and a letter of agreement between the Board and the person, probably with a 90 day notice. He pointed out that a vehicle allowance would be more cost-effective for the County. A discussion ensued regarding the ICMA retirement and the State retirement. It was felt that it would be preferable to have the new administrator participate in the same State retirement plan that all the employees do. Dr. Hardin noted that he found it hard to make the adjustment when he came to work for government after leaving his position with a corporation. Finance Director Barton also agreed; he stated it took him almost a year to make the adjustment to his position with the government. MOTION was made by Commissioner Bird, SECONDED by Commissioner Wodtke that the Board offer the position of County Administrator to Rick Fitzgerald with a maximum annual salary of $42,000, along with reasonable moving expenses; that the question of retirement be resolved and if the ICMA plan does not cost the County additional funds, it would be acceptable, but if it does, then the State retirement plan should be used instead; that there be a 5% increase in salary after 6 months; and that Mr. Fitzgerald be willing to accept this offer no later than August 15, 1982. A brief discussion followed along those lines. THE CHAIRMAN CALLED FOR THE QUESTION. It was voted on and carried with a vote of 4 to 1, with Commissioner Fletcher voting in opposition. PROCLAMATION J U L * 1982 ON MOTION by Commissioner Wodtke, SECONDED by Commissioner Fletcher, the Board unanimously approved the Proclamation regarding Solidarity Day, September 18, 1982. 19 o�xU fnd.39 JUL 7 1982 _' WHIM PROCLAMATION PROCLAMATION OF THE BOARD OF COUNTY COMMISSIONERS OF INJ)IAN RIVER COUNTY, FLORIDA, PROCLAIMING SEPTaaBER 18, 1982, AS "SOLIDARITY DAY IN INDIAN .RIVER COUNTY." WHEREjkS, Saturday, September 18, 1982, has been _ designated by the -American Ideals Foundation as a date for thoughtful obsea;vation of the ongoing struggle for freedom in Poland, -known aag "Solidarity"; and WHEREJkS, in recognition of this cause, artist, LEWIS WATKINS, and composer, ROBERT A. MOFFA, have combined to create a master project �?f sculpture and music, to be dedicated at the Church of Nativ$ty in the City of Brandon, Florida, on September 18; and WHEREAS, counties around the State have been requested to join vicariously in this unveiling and observance by the adoption of a pa;oclamation affirming this cause; and WHEREAS, the Board of County Commissioners, on behalf of the citizens of Indian River County, wishes to provide.its recognition and support for the cause at hand. NOW, WHEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, that -Saturday, September 18, 15►82, is hereby proclaimed as "SOLIDARITY DAY IN INDIAN RIVER COUNTY.19 BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY By C. DON C. SCURLOCK, JR. Chairman Attest: r� FREDA WRIGHT"Cl6kk APPROVER S TO FORM '? AND LEGA UFFI XEN By. G• M. BRAN 9NBURG, C unty Attorney ,. , .. 4 NO CASINOS RESOLUTION The Board reviewed the following memorandum dated June 30, 1982: TO: The Honorable Members of DATE: June 30, 1982 FILE: " the Board of County Commissioners SUBJECT: No Casinos, Inc. in Florida �. A, . D. FROM: C. B. Hardin, r. Ph. D.REFERENCES: Acting County Administrator This is in response to a request from Michael Ledbetter, Executive Director, No Casinos, Inc. in Florida. It is recom- mended that the data contained herein presented be given formal consideration by the County Commission. 1. DESCRIPTION AND CONDITIONS In 1974, an organization called, "Floridians for State - Controlled Casinos, Inc." was organized to push for legalized gambling. In 1977, legislation was introduced in the -Florida House of Representatives to permit casinos in Miami Beach by amending our State Constitution. The bill died in Committee as did similar legislation proposed in 1978. t In 1978 the same group that originally formed "Floridians for State Controlled Casinos, Inc., launched a statewide petition drive to permit casino gambling in South Florida. No Casinos, Inc., a bi-partisan, non-profit organization was formed and worked to defeat the Casino issue in 1978 and this organization was reactivated by Governor Graham in October of 1981. 2. ALTERNATIVES AND ANALYSIS Sheriff Tim Dobeck, along with the sheriffs of sixty-two other counties, has agreed to serve as County Chairman for this organization. Resolutions have been adopted by numerous organizations supporting the No Casinos position. 3. RECOMMENDATION•AND FUNDING Staff recommends the Board of County Commissioners instruct the County Attorney to draw up a resolution supporting the No Casinos position and that Sheriff Dobeck be complimented _ for taking a strong stand on this important Public Issue. No funding is required. J U L 7 1992 c21 l4i J U L 7 1982 5� TAP 142 ON MOTION made by Commissioner Wodtke, SECONDED by Commissioner Lyons, the Board unanimously authorized that the County Attorney draft a resolution supporting the No Casinos position. MENTAL HEALTH DISTRICT NO. 9 BOARD The Board next discussed the following letter of resignation from Daniel R. Richey: /CEG JUN 1982 LD G I�CC.o II,BE.t'cN �'�•s. . nr COUNTY w f � Q-16 9 L 9C'' C j /+/caZ eon. pp rrivlrvl�SliaA M)rJj6�AT70,- Nva AA �/L2o 1j'EA6N Fla. 0 /6,4 /S IA' J 44 YOU O� QC2SGNLI t .:AAP /ey« CJN� Q%�C� �/y O l�C /t. / �/ � �D�s� "'. f'Gu 6 /U%ON T7,S � /✓/� (aJo,v :� ll�llJ h,rv6 A -x- 1x-d1e 4e Z7 4E/ is �✓��o�� SF/C dct Gr✓ j i t ��!?. y /�on �rvx/ t� �a.��2 D . 4A' '6'A7U//y } vb/fil'� �' u�?�s �ss��.c��/a/✓ .��"� �S��IEon�� Z/se C'ouxD /SE ✓L ,2c` L-Slei "?'4 �GI/nJsti/ p�J TAT/$ eo v)eb 7�%Ani �/A✓�, Jb Yo '14 -7Z7.4 6, / N/±N�. yO�J � �fd2/rt- �O+vy7/�ENGt AND rev,., (/ SN�fI ON MOTION made by Commissioner Lyons, SECONDED by Commissioner Wodtke, the Board unanimously accepted the resignation of Daniel R. Richey from the Board of Directors of the District 9 Mental Health Board. PUBLIC HEARING - NORTH BEACH WATER COMPANY FRANCHISE The hour of 9:00 o'clock A.M. having passed, the Deputy Clerk read the following Notice with Proof of Publication attached, to -wit: NOTICE OF PUBLIC HEARING All interested parties are invited to attend The Public Hearing for the North Beach and will be given the opportunity to be heard at , Water Company Franchise Application shall that time. The proposed franchise will provide �/ER® BEACH PRESS -JO-.- be heard at 9:00 A.M., Wednesday, July 7, 1982 water service to the following developemenfs; at the County Commission Chambers at the f Riverbend, Baytree, Sea Oaks, Surf and Published Weekly 184025thStreetRiver ,VeroBeachAdminiFlorida32960.stration og, `theaeaRacquet Club and B ach of orthonthefollowingllo any fmapoge herwifh Vero Beach, Indian River Cou COUNTY OF INDIAN RIVER: STATE OF FLORIDA \ Before the undersigned authority personally appear• says that he is Business Manager of the Vero Beach Press -Jo: at Vero Beach in Indian River County, Florida; that the att a ( Q in the matter of Alul F in the—.1„ - lished in said newspaper in the issues of L. a 131i 0 _ , TSIS I9y�..... ° Affiant further says that the said Vero Beach Press-Jol. ° `-¢ �_ .4' ,ly Vero Beach, in said Indian River County, and that th[ ' '� I 1.. \ ^ - !Y \�. SHORI been continuously published in said Indian River County, Flc `��, as second class mail matter at the post office in Vero Beach, i , WtstAix%.. it 1 for a period of one year next preceeding the first publicati tisement; and affiant further says that he has neither paid corporation any'discount, rebate, commission or refund fort tisement for publication in the said newspaper. �? .� 4'` �•s 1 jG '' ! moi, ' Sworn to and subscribed before m9fthispt day of. - 1 .. "_•—� _ _ I June 15, 1982. The service area, as generally described, record of the proceedings, and for such pur- will range from Summerplace to Indian River poses, he -she may need to ensure that a ver - Shares on the barrier island (along AIA) per batim record of the proceedings is made, sketch. which record includes the testimony in In addition, the proposed franchise will evidence on which the appeal is based. (SEAL) (Clerk of the Circuit Court, supply water service to Summer Place and the North Beach Water Co. Wabasso Beach Park, subject to the franchise ' c -o Steve Henderson regulations. 817 Beachland Blvd. If any person decides to appeal any decision Vero Beach, Florida 32960 made on the above matters, he -she will need a June 15, 1982. J U L 7 1982 23 anx 50 AU143 JUL '71982 50 144 The Board reviewed the following memorandum from George Liner, Utilities Manager, dated June 28, 1982: TO: The Honorable Members of the DATE: June 28, 1982 FILE: Board of County Commissioners _ THRU: Dr. C.B. Hardin, Jr., Ph.D. Acting County Administrator . FROM: eorge i ner, Utilities Manager DESCRIPTION AND CONDITIONS Application for Franchise SUBJECT: for North Beach Water Company, Public Hearing of 7/7/82 REFERENCES: t The North Beach Water Company consists of_a cooperative venture of several developers to form a "unified" water franchise instead of indepen- dent and isolated franchises. This arrangement was discussed at a time that several franchises were proceeding in parallel paths - to`avoid the possibility of numerous expensive package plants for water production. Early in the discussions it was obvious that objectives for the water systems had much in common and the cooperative arrangement, though difficult, is feasible. These points are that: 1) Water availability shall be from deep wells and reverse osmosis treatment. 2) Every effort will be used to promote conservation and hold down costs of system size. This includes use of individual residence or unit meters, irrigation preferably from wastewater effluent, fixtures that save on water use, and discouragement for use of large meters. 3) All the associated developers should be able to benefit by "economy of scale" in sharing the proportional cost of the cooperative plant. The principal participants of the North Beach Water Company and their respective projects are: Developer Subidivision Baytree Limited Baytree Florida Land Company River Bend Robert Cairns Surf & Racquet Club Florida Community Land Development Co. Sea Oaks Hotel/Sea Oaks Condo Planning work for the North Beach Water Company had been parallel with the efforts of the Florida Land Company; a company which is somewhat ahead in schedule of the other developers. There have been numerous meetings and amendments to the plans and agreements of the North Beach Water Company. In each case, the response has been in harmony with the desires of the County. The fact that the North Beach! Water Company is a group of developers is instrumental in several unusual conditions being worked out to provide for the developers needs as well as known existing subdivisions including service to Summerplace and Wabasso Park. M The County needs assurances that the utilities will be professionally run under a specific franchise. Equitable arrangements for all the cooperative developers are needed which takes into account only two will be responsible for providing land for wells, plant and certain distribution mains. This involves consistant conservation requirements and fair rate schedule. Discussion of any changes requires County concurrance as well as concurrance of the parties involved in the cooperative venture. t A public hearing meeting was held June 2, 1982 to review the requirements of Florida Land Company and their need to get their project moving ahead. At that time, the Board of Commissioners postponed action until the scheduled meeting of July 7, 1982. An ad was published in the Press - Journal in the issue of June 15, 1982. In addition, the tax rolls were researched to obtain a list of 256 property owners within 300 feet of the service area. All property owners of this list were notified by mail on 6/25/82 of the public hearing for the North Beach Water Company. The application and prepared package of background material is attached to this memo. ALTERNATIVES AND ANALYSIS ` Although the developers subdivision can benefit by the unified water system, the obstacles and interests prevented the arrangement of a unified sewage system. This is in a large part brought on by the need for conserva- tion of potable water which virtually dictates that each subdivision retains its own sewage effluent for irrigation and possibly fire protection. The unusual nature of the cooperative water system results in the stated desire of the franchise to be acquired by the County after the franchise is able to recover most of its development costs. This desire is manifest in the franchise resolution defining the contracted cost of the system less computed impact fees and less calculated depreciation. This method of determining cost to the County is believed by staff to offset a need to accrue impact escrow fees for this franchise. Although it is difficult at this time to predict the development rate because of the economy situation, there is a provision for the County to purchase the franchise at 7 years and 10 years - times at which the franchise is expected to be in a position of earning its own way. The County is protected with a provision for an escrow fund established for a maintenance (Renewal and Replacement) account. In addition, the County will obtain a tax of 3% of the gross revenue, along with fiscal records and certification of proper payment. The proposed rate schedule for impact fees and service fees are of a scale to promote conservation of water and the use of the smallest practicable meter. The rates are seen to be at a higher level than those proposed by River Bend Utility Company. However, this is explained by the uncertain economy picture as it affectsdevelopment and the desire of the franchise to recover its costs to ease the sale to the County. , The nature of the cooperative venture is such that certain organizing aqreements are not legally feasible until the franchise can be established by approval of the Board of Commissioners. Where this occurs, the completed documents will be made a part of franchise resolution. An example bf this is an agreement for equitable sharing of the lease and or purchase costs for land required for location of the wells, plant and major distri- bution main. RECOMMENDATION AND FUNDING It is recommended that the Board of County Commissioners approve the application for the North Beach Water Company as proposed. JUL 7 1982 ou � 25 .wJ - J U L 7 1992®�x "50 Chairman Scurlock stated that he was in a position to recommend approval of the final draft of the franchise agreement with the North Beach Water Company. Commissioner Lyons advised that he had a possible conflict due to,an investment in a 4welling in the area that would be served by this franchise. Attorney Brandenburg advised Commissioner Lyons to file a voting conflict form, as follows: FORM 4 MEMORANDUM OF VOTING CONFLICT LAST NAME — FIRST NAME — MIDDLE NAME AGENCY is unit of: DATE ON WHICH VOTE OCCURRED Patrick B Lyons ❑STATEJuly 7- 2 MAILING ADDRESS NAME OF IPERSON RECORDING MINUTES 17 Sailfish Road 'COUNTY Janice Caldwell CITY ZIP COUNTY TITLE OF PERSON RECORDING MINUTES Vero Beach, FL 32960 Indian River ❑MUNICIPALITY Recording Secretary NAME OF AGENCY SPECIFY Board of County Commissioners ❑OTHER of Indian River Countv _ Florida MEMORANDUM OF CONFLICT OF INTEREST INA VOTING SITUATION [Required by Florida Statutes §112.3143(1979) ] If you have voted in your official capacity upon any measure in which you had a personal, private, or professional interest which inures to your special private gain or the special private gain of any principal by whom you are retained, please disclose the nature of your interest below. 1. Description of the matter upon which you voted in your official capacity: North Beach Water Franchis-e 2. Description of the personal, private, or professional interest you have in the above matter which inures to your special private gain or the special private gain of any principal by whom you are retained: i Have a deposit on a dwelling in the area that would be j served by franchise. I� 3. Person or principal to whom the special gain described above will inure: a.09 Yourself b.❑ Principal by whom you are retained: NCM e I (NAME) SIGNATURE Z DATE ON WHICH FORM 4 WAS FILED WITH THE PERSON RESPONSIBLE FOR RECORDING MINUTES OF THE MEETING AT WHICH THE VOTE OCCURRED: I LZ Ju -1-y 12, 198 FILING INSTRUCTIONS This memorandum must be filed within fifteen (15) days following the meeting during which the voting conflict occurred with the person responsible for recording the minutes of the meeting, who shall incorporate the memorandum in the meeting minutes. This form need not be filed merely to indicate the absence of a voting conflict. Florida law permits but does not require you to abstain from voting when a conflict of interest arises; if you vote, however, the conflict must be disclosed pursuant to the requirements described above. NOTICE: UNDER PROVISIONS OF FLORIDA STATUTES § 112.817 (1979), A FAILURE TO MAKE ANY REQUIRED DISCLOSURE CONSTITUTES GROUNDS FOR AND MAY BE PUNISHED BY ONE OR MORE OF THE FOLLOWING: IMPEACHMENT, REMOVAL OR SUSPENSION FROM OFFICE OR EMPLOYMENT, DEMOTION, REDUCTION IN SALARY, REPRIMAND, OR A CIVIL PENALTY NOT TO EXCEED $5,000. CE FORM 4 - REV. 12-79 J U L 7 198227 Qo�c 50, ?Aa 147.1 J U L 7 1982 60 50 ' P`AU- I48 Commissioner Fletcher asked the Attorney for an explanation and clarification of several items in the franchise resolution. A lengthy discussion occurred concerning the water to be used for irrigation, and it was determined that the sewer effluent would be used. Commissioner Fletcher inquired about the capital stock. Attorney Brandenburg responded that they have a certificate indicating that the corporation was in good standing with the Secretary of State. Steve Henderson, attorney representing the North Beach Water Company, advised that securing the consumptive use permit was what they planned to do after obtaining the franchise. Chairman Scurlock reported that he met and discussed this matter with representatives of the St. Johns River Water Management District and it was very acceptable to them. Attorney Brandenburg explained that the resolution under discussion was an exclusive franchise for water; it also grants to the County a non-exclusive contract for non -potable water. Lengthy discussion took place regarding items in the resolution pertaining to complaints, customer agreements, and franchise fees. Chairman Scurlock felt the franchise fee was a reasonable approach, and was in favor of it. Commissioner Fletcher inquired what would transpire when the take-over by the County occurs. The Attorney responded that the County would send the North•Beach Water Company a -letter stating it was exercising its option for the take-over, and they, in turn, would disclose to the County what it would be purchasing at that point. The Chairman pointed out that a lot of work, discussion, and evaluation went into the preparation of this agreement, which is excellent, as it protects the user after the developer is gone. Community Services Director Thomas interjected that the Attorney asked many staff members to review this document, and he wanted to put emphasis on the amount of time that was spent - it was not taken lightly. Commissioner Wodtke felt it was important that the Utilities Department have a copy of an up-to-date set of as -built drawings at all times. Attorney Brandenburg advised that this item had been included in the resolution, in Section 6. Attorney Henderson then distributed the following fact sheet to the Board: J U L 7 1982�oKulO u .4 29 J U L 71982 50 pp' 150 NORTH BEACH WATER COMPANY INDIAN RIVER COUNTY, FLORIDA a vi July 7, 1982 1) Type Treatment: Reverse osmosis with water supply from Floridan Aquifer 2) Participants: Baytree, Ltd. Baytree Florida Land Company Riverbend Cairns Brothers Surf & Racquet Florida Communities Land Sea Oaks Development Co. Gordon S. Nutt Nutt Holdings 3) Scope: A) Three stages of construction (1983 - 1988) B) 976,000 gallons average daily flow C) 1,464,750 gallons maximum daily flow D) Total cost $3,200,000 Rick Schaub Dale Crosby Robert & John Cairns Robert Briggs Gordon S. Nutt 4) Location of Treatment Plant: 3/4 mile south of Highway 510, midway between AlA and Jungle Trail 5) Consultants and Legal Advisors: Beindorf & Associates, Inc. Vero Beach, Florida Carter Associates, Inc. Vero Beach, Florida Collins, Brown, Caldwell & Carter Vero Beach, Florida Jones, Foster & Moss Vero Beach, Florida Myers, Kaplan, Levinson, Kenin & Richards - Tallahassee, Florida Dyer, Riddle, Mills & Precourt, Inc. Orlando, Florida Parker Engineering Company, Inc. Coral Springs, Florida Seaburn & Robertson, Inc. Tampa, Florida Source, Inc. Cape Coral, Florida Arthur Young & Company Charlotte, North Carolina Consult --g Engineers Jim Your7, P.E. =srveyors -ana Howard, P.L.S. Attorne- William V. Caldwell, Esq. Corporate Attorney Steve Henderson, Esq. Attorneys William E. Sundstrom, Esq. Lead Project Engineers James L. English, P.E. Consulting Engineer Ben T. Parker, P.E. Hydrogeologist - Water Resources Consultants Dr. Gerald Seaburn Jimmy R. Edwards Consulting Engineers - R/0 Expert James P. Elliott, P.E. Accountants - Financial Advisors George Faftelis Dr. Gerald Seaburn, a hydrogeologist and water resources consultant from Tampa, Florida, came before the Board, and explained that the source of the water to be used is the Floridan aquifer. He added that it would run from 400' below land surface to about 1,0001. Discussion followed about the Floridan aquifer and whether it was a finite or infinite aquifer and it was felt there was not enough information available to make this determination. J U L 7 1982 31 50 PA6c 151 J U L 7 1982 50 102 Mr. James Frazee, of the St. Johns River Water Management District, informed the Board that they were referring to the water within the Sebastian lens area and not the entire Floridan aquifer. He added there were many ways of spreading the stresses to the different layers. Mr. Frazee commented that if the barrier island is to be developed, then the Floridan aquifer is the only source that can be used; it is the best alternative in this area to supply potable water. The major depletion is being caused by individual ownership of wells and they usually fall way below the criteria of the District. Commissioner Fletcher asked if a reverse osmosis system would have the capability of using sea water. Mr. Frazee responded that it would be a reverse osmosis system with alterations - there would be a different membrane. He then explained that the District was trying to control and reduce the depletion in the basin by assessing all of the permits as they come in. Commissioner Fletcher inquired about the appeal process a neighboring user would have with the District should his well be affected. Mr. Frazee advised that the citizens, or the developers, could send letters of consent or disagreement to the District, or ask for a Chapter 120 hearing. Commissioner Lyons inquired about the uncapped, free-flowing wells. Mr. Frazee reported that millions of gallons per day were being lost to the fresh water lens in the Sebastian area, and they are in the process of blocking the wells in the Sebastian area. He advised that they will be doing a similar program in the South County area. Mr. Frazee felt that if the free flowing wells were blocked, they would probably eliminate more use than the new franchise would be bringing into the area. The Chairman asked if there was anyone in the audience who wished to be heard. John J. Morrison, resident of Indian River Shores, came before the Board and stated that he had been in intimate knowledge, for the past 22 years., of the water in that particular area. He continued that there was a geological fault in the area. Mr. Morrison stated that he put a well in his back yard and it went down to 1,100' and they found only an ooze coming out of the well, not a thrust. He felt that the idea of a water district was fine, but a franchise becomes an arm of the government. Mr. Morrison suggested that first, all the facts should be gathered. He had not heard anybody speak of the biological degradation of the outfall of the chlorides - any disposal in a given area could be very damaging to the environs. Air. Morrison thought this should be approached with extreme caution and with facts, not generalizations. He then urged the Board to defer the matter until they had the proper presentation of facts and material, as time was not of the essence in this matter. Michael O'Haire, attorney on behalf of the Vero Beach Civic Association, expressed concern that upon examining the franchise application, there was no financial statement of the water company. Instead, he added, there was the annual report of the parent company. He felt the company's financial ability should be before the Board. Attorney Brandenburg responded that if they look at the financial responsibility as a whole, the North Beach Water Company would have a substantial asset in the plant themselves. If they don't get a permit, they will not be able to build their plant. The Attorney felt that the County's concerns in this regard were met. Attorney O'Haire still raised the question of guarantees of some substance, as developers may leave the J U L 7 1982 33 Book 50' Pig 153 JUL 71982 x 50 154 area, and then what happens to the citizens. He suggested that the parent companies should be involved in this matter. Dr. Charles Holt, resident of Orchid Island, was concerned that no consideration was given to the people in Wabasso and Orchid Island, who are going to be severely impacted by this action. He felt that the franchisee should not have the use of the water in the pipeline from Wabasso to Johns Island. Warren Bellman, Summerplace, expressed to the Board that he was very much in favor of the franchise. Edward Tangora, Summerplace, inquired about the time frame and when they would be ready for connection into the water system. Attorney Henderson responded that the plan was currently in the design stage and it would be late in 1983 before the plan was completed. He advised the residents in Summerplace to organize in the meantime, and then their organization could negotiate with the developers for connection to the system, depending on the availability of the capacity. Lillian Reiner, Frangipani Drive, expressed interest in getting water at her residence. Paul Swenson, Summerplace, wondered if the new franchise would affect the shallow wells in Summerplace. Dr. Seaburn advised that there would be no effect on the shallow aquifer because of the Hawthorne Barrier confining it. Discussion followed about a connection fee and it was determined that the engineering has not been done nor have the number of customers been determined; therefore, that figure would have to be calculated later. It was also determined that connection to the system was not compulsory. ON MOTION by Commissioner Bird, SECONDED by Commissioner Fletcher, the Board unanimously closed the public hearing. The Board reviewed the minor changes in the draft of the franchise resolution. Commissioner Bird inquired if the Attorney, based on the comments just heard, would recommend any additions or changes to the resolution prior to the Board passing it in final form. Attorney Brandenburg commented that he would ask Attorney Henderson the point brought out by Attorney O'Haire regarding the parent companies guaranteeing performance under the franchise. Attorney Henderson responded that this procedure would take review by two or three Boards of Directors. He added that they were forming a corporation mainly because the elements of the venture dictate it; they were spending in excess of $3 million for the plant, which will be" maintained, and he had difficulty realizing where the County would seek enforcement of the performance guarantee. Attorney Brandenburg agreed, and stated he would recommend the franchise resolution as it was written. Attorney Henderson commented that the funding for the franchise would be secured by letters of credit, and maintenance would be assured by the repair and replacement fund. He continued that the letters of credit flow from the developers; they are securing those commitments to each other. Robert Reider, Reef Road, asked if Florida Land Company had purchased the property in question, or were they holding an option? JUL 7 19823s ° 0 mr,155 J U L 7 1982 Bev 50, PAU x.56 Attorney Brandenburg explained that the option he is referring to had expired, and Florida Land Company owns the River Bend property. He added that two of the participants own land where the plant site will be located. John Morrison reiterated that the cart was before the horse in this regard; he felt the Board should be demanding ce'rtain information be answered before a vote was taken. William Koolage, interested citizen, wondered if the Finance Department had reviewed the matter of the letters of credit. Lengthy discussion ensued about the adequacy of the water supply and the testing program that will determine the availability of water. Mr. Frazee pointed out that a franchise is worthless without water to pump through the lines. Commissioner Wodtke explained that the franchise was extremely important to have so that the boundaries could be determined, then the ultimate needs could be investigated at one time, rather than having individual people trying to put in wells. Tom Tessier, of Geraghty & Miller, stated that what Mr. Morrison had pointed out was basically correct, but they have assurances from the District that they will look critically at the application. He cautioned the County to be adequately protected that if it does issue this franchise, it does not find itself caught in a situation that it can be used as a lever against the St. Johns District. Commissioner Lyons referred to Mr. Tessier's comment about putting pressure on the St. Johns District - the County was not in that position, he felt. Mr. Frazee stated that whether the Board issues this franchise or not, if the District does not see the water there, they will deny it. In other words, the franchise is not going to force the issue - the St. Johns District is looking very carefully at the resource. He added that the location of stress points will be a very important thing they will consider. Mr. Frazee informed the Board that they have a very sizeable packet of letters regarding this particular permit; it was not being taken lightly by the staff. He commented that the process allows a terrific amount of public comment. MOTION was made by Commissioner Bird, SECONDED by Commissioner Wodtke, that the Board adopt Resolution 82-59 approving the North Beach Water Company Franchise. Commissioner Lyons felt the franchise was a fine document. They are putting in a franchise before knowing about the water supply; however, he felt this was the proper vehicle to bring the problem to a conclusion and as he saw it, the St. Johns District will determine if there is enough water for this to be done. Commissioner Lyons stated that he planned to vote in favor. Commissioner Fletcher noted that he planned to vote negatively. He stated he knew traditionally, that the Board had granted a lot of things before knowing the end result. Commissioner Fletcher added that the resource availability is not known or the impact it is going to have on the existing users. He felt another pollution source was being created. THE CHAIRMAN CALLED FOR THE QUESTION. It was voted on and carried with a vote of 4 to 1, with Commissioner Fletcher voting in opposition. J U L 7 1982 Boni 50..Ifmf 157 BARK 50��1� JUL '` 1992 t x RESOLUTION NO. 82-59 BE IT RESOLVED by the Board of County Commissioners of Indian River County, Florida: SECTION I This Resolution shall be known and may be cited as the "North Beach Water Company Franchise". SECTION II For the purpose of this Resolution, the following terms, phrases, words and their derivations shall have the meaning given herein. When not inconsistent with the context, words using the present tense include the future, words in the plural number include the singular and vice versa. The word "shall" is always mandatory. o (a) "County" is Indian River County, a political subdivision a 0 of the State of Florida. i U W (b) "County Engineer" may be "County Administrator." m 0 W (c) "Corporation" is the Grantee of rights under this o franchise, to wit: North Beach Water Company, a Florida f corporation. W 4 (d) "Board" is the Board of County Commissioners of the aCounty. (e) "Person" is any person, firm, partnership, association, corporation, company or organization of any kind. (f) "Developer" means a property owner within the franchise territory requesting service. ' (g) "Territory" means the area located in Indian River County, Florida outside the corporate limits of any municipality as the same is more particularly defined and described herein. (h) "Water System" shall mean and include any real estate, attachments, fixtures, impounded water, water mains, services, valves, meters, plant, wells, pipes, tanks, hydrants, pumps, reservoirs, systems, facility or other property, real or personal, used or useful or having the present capacity for future use in connection with the collection, obtaining, treatment, supplying and distribution of water to the public for human consumption, fire protection, irrigation, consumption by Residential, business or industry, operation of sewage disposal plants and, without limiting the generality of the foregoing, shall embrace all necessary appurtenances and equipment and shall include all property, rights, easements, licenses and franchises relating to any such system and deemed necessary or convenient for the operation thereof. (i) "Service" means supplying to a user the distribution of water and the treatment thereof. (j) "Hookup and/or Connection" is the connecting of potential user's property to the water system in order to utilize the Corporation's services. SECTION III There is hereby granted by the County to the Corporation the exclusive franchise, right and privilege to erect, construct, operate and maintain a water system as herein defined within the described territory as herein provided and for these purposes to sell and distribute treated water within the territory, and for these purposes to establish the necessary facilities and equipment and to lay and maintain the water system along under and across the public alleys, streets, roads, highway and other public places of the County; provided, however, that the County reserves the right to permit the use of such public places for and all other lawful purposes and subject always to the paramount right of the public in and to such public places. The Corporation may use treated water for irrigation purposes but only to the extent of forty percent (40a) of the total capacity of the water plant and system. If the Corporation desires to utilize treated water for irrigation purposes in excess of said limitation, prior consent of the Board is required. In addition, this franchise authorizes the Corporation to develop a parallel water source and distribution system to serve the franchise area for irrigation purposes provided, however, that rates and charges applicable to said system will be subject to the prior approval of the Board in the same manner as provided for in Section XIX hereof. Corporation is 2 J U L 7 1982 BOOK QFAR 159 JUL 71982 l OK 50 6bC 160 granted the non-exclusive franchise to distribute untreated waterl within the franchise territory. SECTION IV The territory in which this franchise shall be applicable isl all that part of Indian River County, Florida, located within thel following described boundary lines, to wit: All Government Lots 1, 2 & 3, Section 25, Township 31, Range 39. All Government Lots 1, 2, 6, 7, 8, 9, 10 & 11 and all that part of Government Lot 3 lying East of "Jungle Trail" as shown on the "Jungle Trail Maintenance Map for Indian River County", Section 26, Township 31, Range 39. All of Government Lot 5, Section 26, Township 31, Range 39, less the West 2 acres thereof more particularly described as follows: Commencing at the Southwest corner of Government Lot 3, run West along the North line of Government Lot 5 a distance of 505.96 feet to the point of beginning, thence continue West along said line a distance 812 feet to the Northwest corner of said Government Lot 5, thence run South along the West line of said Government Lot 5 a distance of 21 feet, more or less, to the mean high water line of the Indian River, thence meander the said mean high water line in a Southeasterly direction to a point due South of the point of beginning; thence run North 125 feet, more or less, to the point of beginning, on the North line of said Government Lot 5. All Governments Lots 39. All Governments Range 31. 1 & 2, Section 35, Township 31, Rangel Lots 1 & 2, Section 36, Township 31, Together with: Summerplace Subdivision Unit 1 as recorded in Platbook 6, page 56; Unit 1 Replat as recorded in Platbook 6, page 78; Unit 2 as recorded in Platbook 6, page 85; Unit 3 as recorded in Platbook 7, page 74; Unit 4 as recorded in Platbook 8, page 22, and, Oceanaire Heights Subdivision Unit 1 as recorded in Platbook 3, page 84 & 85; Unit 2 as recorded in Platbook 4, page 4; Unit 3 as recorded in Platbook 5, page 53; all lying and being in Indian River County, Florida. The Corporation shall, at all times during the life of this franchise, be subject to all lawful exercise of the police power and regulatory authority of the County. The right is hereby reserved to the County to adopt, in addition to the provisions herein contained and existing applicable resolutions or laws, such additional regulations as it shall find necessary in the exercise of the*police power and lawful authority vested in said County, provided that such regulations shall be reasonable and not conflict with the rights herein granted and not in conflict with the laws of the State of Florida. Upon application by the Corporation and approval by the Board, the franchise territory may 3 I.. LL W 0 LL ai W z 0 be expanded to include additional lands adjacent to and/or in the vicinity of the franchise territory described above. It is expressly understood and agreed by and between the Corporation and the County that the Corporation shall, save the County and members of the Board harmless from any loss sustained by the County on account of any suit, judgment, execution, claim or demand whatsoever resulting from negligence or other acts on the part of the Corporation in the construction, operation or maintenance of the water system under the terms of this franchise. The County shall notify the Corporation promptly after presentation of any claim or demand. SECTION VI The Corporation shall maintain and operate its water plant and system and render efficient service in accordance with all local, State and Federal laws and regulations, which shall include but not be limited to "Construction Specifications for Water Distribution and Sewage Collection Facilities" promulgated by Indian River County Utilities Department, July 1980. Prior to the issuance of a construction permit, the Corporation's project engineers shall certify to the County that engineering plans and specifications meet the design standards as set forth in said "Construction Specifications" of Indian River Utilities Department, July, 1980, or as amended. The Corporation shall cause said certification to be submitted to the County along with the Florida Department of Environmental Regulation applications and plans, for County review. Submission to the County for review may occur simultaneously with submission of said documents to the Florida Department of Environmental Regulation. Upon approval by the County of the plans for the plant and system, (which approval/disapproval will be forthcoming not later than 15 days following DER action on permit application), a permit shall be issued to the Corporation for the construction thereof. The County shall have the right, but not the duty, to inspect all construction or installation work performed. JUL 7 1982 4 �o�. 50 161 r cul 7 198? Pon the completion of all construction of - &060rwat5u, WIFA64 and distribution systems, the project engineer for the Corporation shall certify, under seal, that the system has been constructed substantially in accordance with the plans and specifications previously approved. The certification shall include submission to the County of two (2) sets of "As -Built" drawings, consisting of one (1) set of reproducible vellums and one (1) set of regular blue line prints; and that the systems meet all of the standards required by the County, including pressure and leakage tests and chlorination and bacteriological tests for the water distribution system. Upon receipt of certification from the engineer the County will issue a letter acknowledging the construction of the water system. No service is to be provided to customers until such time as the County issues a letter of acknowledgment. The issuance of said letter shall not be unreasonably withheld. Copies of Monthly.Operating Reports required to be filed with the Florida Department of Environmental Regulation shall be furnished to County. SECTION VII W All of the facilities of the Corporation shall be constructed oin accordance with the plans and specifications approved by the 1 Department of Environmental Regulation of the State of Florida and W F 0 the quantity and quality of water delivered and sold shall at all IL Z times be and remain not inferior to the quality standards for 0 public water supply and other rules, regulations and standards now or hereafter adopted by the Department of Environmental Regulation of the State of Florida. The Corporation shall maintain sufficient water pressure and mains of sufficient` size with fire hydrants and other facilities necessary in the water distribution system to furnish fire protection at any and all areas within the territory receiving service from the Corporation. Said fire flow standards shall be a minimum of 550 gallons per minute for four hours for residential units of two (2) or less floors and 1100 gallons per minute for four hours for any commercial building and residential units of three (3) or more floors. The Corporation shall also supply all water to consumers through individual meters which shall accurately measure the amount of water supplied. The Corporation shall at any time, when requested by a consumer, make a test of the iWacy of any meter; priowever, to any test beide by imif5 E_ J M the Corporation, the sum of Ten Dollars ($10.00) shall be deposited with the Corporation by the party requesting such test. Such sum shall be returned if the test shows the meter to be inaccurate in its delivery. If the meter is inaccurate, it will be repaired or changed and a billing adjustment will be, made for no more than the past six months' actual readings. Whenever it is necessary to shut off or interrupt service for the purpose of making repairs or installations, the Corporation shall do so at such times as will cause the least amount of inconvenience to its consumers and, unless such repairs are unforeseen and immediately necessary, it shall give not less than five (5) days' notice thereof to its consumers for non -emergencies. SECTION VIII (a) The Corporation shall have the authority to promulgate such rules, regulations, terms and conditions covering the conduct of its business as shall be reasonably necessary to enable the Corporation to exercise its rights and perform its obligations under this franchise and to furnish service to each and all of its consumers; provided, however, that such rules, regulations, terms and conditions shall not be in conflict with the provisions hereof, applicable County ordinances or with the laws of the State of Florida, and all of the same shall be subject to the approval of the Board. (b) Additionally, the Corporation shall have the authority to enter into Developers Agreements with the developers of real estate projects and other consumers within the franchise territory, which agreements may include, without limitation, provisions relating to; (1) advance payment of contributions in aid of construction to finance system expansion and/or extension, (2) revenue guarantees or other such arrangements as will make the expansion/extension self supporting, (3) capacity reservation fees, (4) prorata allocations of plant expansion/main extension charges between two or more developers. Developer Agreements entered into by the Corporation shall be fair, just and non-discriminatory. In the event the Corporation a Developer seeking service pursuant"hereto cann. a r onJULfnd199 G �[JUL 71982 fees, contributions and charges requested by the Corporation pursuant to the Developers Agreement, said Developer shall have the right to apply to the Board for relief pursuant to Section XVIII hereof. Copies of all Developer Agreements entered into by the Corporation shall be filed with the Utilities Department. (c) At all times herein where discretionary power is left with the Board of County Commissioners, before discretionary action is taken by the Board of County Commissioners, the Corporation can request said Board that a group of arbitrators be appointed and such group shall consist of: 1. County Engineer 2. Corporation Engineer 3. One person selected by the above two persons and this Board of Arbitrators shall make recommendations to the Board of County Commissioners, but such recommendations are not mandatory. Any Arbitration shall be in accordance with the Florida Arbitration Code. Any final decision of the Board may have with respect to this franchise can be appealed by the Corporation by Writ of Certiorari to the Circuit Court of Indian River County. (d) The Corporation shall be authorized to commence service to a Developer upon certification by the County that all required County inspections of the water connection within the property owned by the Developer have been made and that all applicable fees related thereto have been paid. SECTION IX All water pipes, pumps, mains, hydrants, valves, blowoffs and other fixtures laid or placed by the Corporation for the water system shall be so located in dedicated easements in the County after approval by County Engineer so as not to obstruct or interfere with other uses made of such public places already installed. The Corporation shall, whenever practicable, avoid interfering with the use of any street, alley or other highway where the paving or surface of the same would be disturbed. In case of any disturbance of county -owned pavement. sidewalk. IIdriveway or other surfacing, the Corporation shall, at its own cost and expense and in a manner approved by the County Engineer, replace and restore all such surface so disturbed in as good condition as before said woriff commenced and Shall maint in the restoration in an approved condition for a period of one (1) year. The Corporation shall not locate any of its facilities nor do any construction which would create any obstructions or conditions which are or may become dangerous to the traveling public. In the event that at any time the County shall lawfully elect to alter or change the grade of or relocate or widen or otherwise change any such county -owned right-of-way, the Corporation shall, upon reasonable notice by the County, remove, relay and relocate its fixtures at the Corporation's expense. In the event any such public place under or upon which the Corporation shall have located its facilities shall be closed, abandoned, vacated or discontinued, the Board may terminate such easement or license of the Corporation thereto; provided, however, in the event of this termination of easement, the party requesting such termination o shall pay to the Corporation in advance, its cost of removal and M 0 4 relocation of the removed facilities in order to continue its Wservice as theretofore existing, or the County shall retain an M W easement not less than ten (10) feet in width for the benefit of 0 the Corporation and its facilities. i Cd SECTION X M W F 0 The Corporation shall provide service within the W franchise territory on a non-discriminatory basis as if it were 0 regulated under Florida Statute Chapter 367 (1980), except to the extent that said provisions are in conflict with the provisions of this Franchise. SECTION XI (a) Subject to the provisions of Section XI(c), the Corporation shall furnish, supply, install and make available water service to any and all persons within the franchise territory making demand therefor, within time limits as set forth in Developer Agreements entered into between the Corporation and its customers. In the event the Corporation fails to provide its services and facilities as a water system to any area within the franchise territory, then in such an event, the County may, by resolution of the Board, limit, restrict and confine the territory to that area then being serviced by water by the Corporation or such greater area as the Board shall determine; and thereafter, the territory shall be only the area setforth, defined and J U L 71982 R� �p ��bt D5 Jul 71992 60K 50 PA"""166 provided by the Board, and the provisions of this franchise shall not extend beyond the limits of the area so restricted and defined. (b) The Corporation shall not commit or allocate water connections to properties within the franchise territory in excess of the total water volume necessary 'in order to meet the reasonable needs of the particular property to which service is requested. Water connection commitments are not transferable by a Developer, except appurtenant to a transfer of all or part of the real property owned by said Developer. In making the initial determination as to whether the number of water connections requested exceed the reasonable needs of the Developer, the Corporation may rely upon certification by an engineer registered in the State of Florida to the effect that the number of water connections requested are designed to serve the needs of the project undertaken by the Developer and are not in excess thereof. (c) The Corporation shall not be required to furnish, supply, install and make available its public water to any person within the territory as hereinbefore setforth unless unreserved capacity is available and the same may be done at such a cost to the Corporation as shall make the addition proposed financially feasible. Financially feasible shall mean that a fair and reasonable rate of return shall be realized by the Corporation for all its services under this franchise; that such rate of return on the net valuation of its property devoted thereto under efficient and economical management. The burden of showing that prospective service to the area is not financially feasible shall be the burden of the Corporation. Notwithstanding the foregoing, as a condition to extending service within the franchise territory, the Corporation may require Developer Agreements from Developers pursuant to Section VIII(b). SECTION XII Except as otherwise provided, the Corporation or its Shareholders shall not sell or transfer its plants or systems or corporate stock to another nor transfer any rights under this franchise to another without the approval of the Board. No such sale or transfer after such approval shall be effective until the vendee, assignee or lessee has filed with the Board an instrument in writing reciting the fact of such transfer and accepting the - =9 M L—J M terms of this franchise and agreeing to perform all of the conditions thereof. No Board approval shall be necessary where a Stockholder and/or the Corporation transfers/ issues stock to a property owner or successor property owner within the ,franchise territory or another Stockholder in the Corporation; nor shall Board approval be necessary if a stockholder pledges or encumbers stock or if stock is transferred involuntarily, provided, however, that if a permitted transfer, as previously described results in capital stock of the Corporation being issued to a person or entity (other than a then existing stockholder in the Corporation) and said transfer further results in a shift of majority organizational control to said person or entity, Board approval of said transfer or issuance shall be required in accordance with o this Section. Otherwise, this franchise shall not be transferable 0 LL and/or assignable until notice or request for transfer and i a assignment shall be given by the Corporation to the Board in W m Wwriting accompanied by a request from the proposed transferee, o which application shall contain information concerning the f financial status and other qualifications of the -.proposed k transferee and such other information as the Board may require. A ipublic hearing shall be held on such request, of which notice 0 shall be given by publication in a newspaper regularly published in the County at least one time not more than one month or less than one week preceding such hearing. Certified proof of publication of such notice shall be filed with the Board. The Board shall act within 90 days following the request. The consent by the Board to any assignment of this franchise shall not be unreasonably withheld. Any sale or transfer by the Corporation or Stockholders of the Corporation taking place contrary to the terms and conditions of this paragraph shall be void and of no effect. SECTION XIII Corporation warrants adequate planned capacity to service existing or anticipated customers and agrees not to provide water service unless adequate capacity is available at the time any new connection is made. II JUL 71982 1n QOK 50 PAGE ,107 -AL 7 1992 600x 50 PACE SECTION.XIV The rates charged by the Corporation for its service hereunder shall at all times be compensatory and shall be fair and reasonable and designed to meet all necessary cost of the service (including reserves for repair and replacement) plus, a fair rate of return on the fair valuation of all of its properties devoted thereto under efficient and economical management. The Corporation agrees that the County has the authority to enter into this Franchise Agreement and the regulation of said Corporation. Corporation agrees that it shall be subject to all authority now or hereafter possessed by the County or any other regulatory body having competent jurisdiction to fix just, reasonable and compensatory rates. When this franchise takes effect, the Corporation shall have authority to charge and collect, but not to exceed, the schedule of rates set forth below, which shall remain effective until changed or modified as herein provided. The County shall grant rates to the Corporation which are just, reasonable and compensatory, which allow the utility a rate of return on the fair value of its property, systems and additions thereto. In setting said rates, County shall be guided by the standards set forth in Florida Statute 367.081 relating to the establishment of rates and charges. Rates and charges may be amended, upon proper justification, by Corporation pursuant to other provisions of this Resolution. The Corporation shall have the right to include the value of the water system for establishing utility rates. The rates to be charged can reflect a reasonable rate of return on a rate base that is inclusive of these items. The following rates are approved and effective until changed or modified as herein provided, to wit: I. Monthly Water Service Charaes Fixed Charge Meter Size 5/8" 1° 1;" z 2" 311 411 611 Consumption Charge _ $2.25 per 1,000 Gallons Mill Charge 14.45 36.12 72.23 115.56 231.12 361.13 722.25 II. Connection Charge Meter Size Charge 5/8" $ 1,100.00 1" 2,750.00 1i" 5,500.00 2" - 8,800.00 3" 17,600.00 4" 27,500.00 6" 55,000.00 In determining meter size, the Corporation shall not permit sizing to be in excess of that reasonably required according to recognized engineering standards. In making said determination, however, the Corporation may rely upon certification from a registered engineer representing the Developer. The basis for the above charges as set forth herein has been structured with regard to two major but variable factors; first, the present level of construction cost of water transmission, and o water treatment plant facilities; second, the theory of treatment M LL facilities and their degree of treatment sophistication as Wprescribed by the Department of Health and Rehabilitative Services M Wand the Department of Environmental Regulation or other body 06 o having jurisdiction over the matter. Without Board approval the i connection charges set forth herein shall be escalated based upon W 0 increases in utility construction costs as evidenced by the LL W quarterly Construction Index published in Engineering News- Record 0 Magazine, "Construction Cost Index, Twenty Cities." Said connection charges shall be adjusted semi-annually, with a first such adjustment occurring not earlier than January 1, 1983. Any escalation shall not exceed the percentage difference between said Construction Cost Index for the base period ending September 30, 1981, as compared with the period of comparison. In order to defray the cost of regulation, use of public Right of Ways, etc., the Corporation hereby agrees to pay to the County a franchise fee in the amount of 30 of the Corporation's gross revenues collected from monthly service charges. The Corporation shall pay the 3% franchise fee quarterly. Said fee shall be shown as a separate additional charge on utility bills. The Corporation shall, at the end of each fiscal year of Corporation, submit unaudited financial statements prepared by a CPA and a certification by said CPA that based upon the financial records of the Corporation reviewed by said CP�AA the d Fr 'se JUL 71982 11) JUL 7 1982 �K 50 wl-170 Fee has been properly determined, collected and remitted to County, and further that the 2h% Repair and Replacement Fund has been properly funded and expensed in accordance with Section XVI of this Resolution. ' SECTION XV The County shall have the right to purchase the Corporation's water system (excluding internal distribution lines located within properties being served and appurtenant facilities related thereto) pursuant to the following provisions: (1) The County may exercise its right to purchase by giving written notice by certified mail to Corporation not sooner than 180 days nor later than 60 days prior to the seventh and tenth anniversaries of the effective date of this franchise. (2) The purchase price to be paid by the County shall be an n amount equal to the original cost and costs associated with a 0 capital additions and expansions less the following: i W(a) depreciation at 3�2-% annually applied against the m mtotal costs of plant and system, capital additions and expansions ofunded by the Corporation, excluding costs funded by contributions 1 C1 in aid of construction received from Developers requesting service M W 0 to properties other than those properties described on Exhibit A. LL W The depreciation deduction shall not exceed.24.5% of said costs. 0 (b) an amount equal to the total connection fees or other forms of contributions in aid of construction collected and received by the Corporation from Developers (excluding connection fees or other forms of contributions in aid of construction collected with respect to units and facilities located on those properties described in Exhibit A, attached hereto). (c) an amount equal to the "Reserve Capacity Fees" charged by the County pursuant to County Ordinance 80-22 (presently, $285.00 per ERC) as escalated from time to time pursuant to said ordinance, which, had the County installed the plant and system, would have been charged upon issuance of Certificates of Occupancy on units and facilities located on those properties described on Exhibit A. (3) It is acknowledged that the plant site and road access thereto, (as shown on location map submitted with franchise application) will be utiliz by Corporation. unde 'cense _ iW 13 Agreement with the owners thereof, the form for said License Agreement being attached hereto as Exhibit B. In the event the County exercises its option to purchase the system, the County may also elect to purchase the real property as described in said License Agreement pursuant to the provisions thereof. If County elects not to purchase said real property, Corporation shall, without additional consideration, assign its license to County and County shall assume all obligations thereunder. (4) At the time Corporation transfers the described assets to County, Corporation shall also, without additional cost to County: (a) transfer and assign all of its right, title and interest in and to collection transmission and distribution lines and any private easements and well site licenses associated with and necessary to the operation of the system, and County shall own all lines to the point of delivery of service. (b) Deliver and transfer all existing engineering and survey data, plans or other such documents, plans, etc. as the County may reasonably request. (5) All instruments of conveyance, transfer or assignment shall be in usual and customary form with warranties of title and W warranties against encumbrances. 0 (6) At the time of transfer, the plant shall be in good operating order and free of any material violations of any local, State or Federal regulations. The Corporation makes no other warranties, expressed or implied as to the condition of the plant and facilities associated with the system. (7) Upon acquisition of the assets described, the County shall own, maintain, and provide water service as provided for in this Franchise and the County shall assume Corporation's obligations under then existing Developer Agreements and related contractual obligations and Corporation shall be released from all further obligations thereunder. SECTION XVI Two and one-half percent (2-1-20) of the gross receipts of the Corporation derived and collected from monthly service charges shall be placed in an interest bearing Repair and Replacement account for purposes of maintenance of the capital.UAets.the' J U 71982 1 d mg OU J U L '71982 BOOK 50 P 7 Corporation. The Corporation shall initially fund said account with a sum of Five Thousand ($5,000.00) Dollars. The Repair and Replacement account shall be maintained and managed by the Corporation in accordance with the following provisions: (a) Said fund shall be used as a sinking fund and applied only for repairs and/or replacement of the capital assets of the water system by the Corporation as the need arises. (b) County shall have the right to make necessary repairs using said funds in the event of a default on the part of the Corporation in maintaining the quality standards established herein. (c) Interest accruals in said account shall be payable annually to the Corporation. (d) Said account shall be opened and maintained in the name of the Corporation and Corporation shall furnish County with quarterly reports reflecting additions to and the disbursements from said account. (e) County shall inspect the plant and system semi-annually to insure the Corporation is maintaining the plant and system in accordance with the quality standards established herein. a; W (f) The Corporation may make such additional contributions to said fund as the Corporation, in its discretion, may deem necessary in order to adequately fund the Reserve and Replacement Account. If, upon application by the Corporation, the Corporation makes a showing that the amount in said account is in excess of that reasonably required to meet anticipated repair and replacement requirements, the County may permit a disbursement of said excess to the Corporation and/or may reduce the percentage of gross revenues required to be allocated to said account on either a permanent or temporary basis. If it should appear during the term of this Franchise that the amount in said account is inadequate to meet the reasonably anticipated repair and replacement requirements, County, upon proper notice and hearing pursuant to Section XXI of this Ordinance, may require an increase in the percentage of gross revenues required to be allocated to said account. The burden of proving inadequacy of the account 15 M shall be on the County. (g) In the event the County exercises its rights to purchase hereunder, the amount remaining in said fund shall be transferred and paid to County upon transfer of the plant and system. SECTION XVII The Corporation shall at all times maintain public liability and property damage insurance in such amounts as shall be required from time to time by the Board in accordance with good business practices as determined by safe business standards as established by the Board for the protection of the County and the general public and for any liability which may result from any action of the Corporation. SECTION XVIII If any written complaint is filed with the Board by any persons serviced by the Corporation under this franchise, the Board shall first determine whether reasonable cause exists with respect to said complaint. If the Board finds that reasonable cause does exist, the Board shall so notify the Corporation and request the Corporation to satisfy or remedy such complaint. If the Corporation fails, within a reasonable time, to satisfy or remedy such complaint or objection the Board may review same according to the provisions hereof. If the Board enters its order pursuant to such hearing and the Corporation feels it is aggrieved by such order, the Corporation may seek review of the Boards action by petition for Writ of Certiorari filed in the Circuit Court of the County; otherwise, the Corporation shall promptly comply with the order of the Board. SECTION XIX Should the Corporation desire to establish rates and charges or should the Corporation desire to increase any charges heretofore established and approved by the Board, then the Corporation shall notify the Board in writing, setting forth the schedule of rates and charges which it proposes. A public hearing shall then be held on such request, of which notice shall be given by publication in a newspaper regularly published in said County at least one time not more than one month or less than one week preceding such hearing. Certified proof of public t'on',"of"'such J U L 71982 j�nt Sr73 JUL 7 1982 notice shall be filed with the Board. Said hearing may thereafter be continued for a reasonable time as determined by the Board. If the Board enters an order pursuant to such hearing and the Corporation feels aggrieved by such order the Corporation may seek review of the Boards action by filing a petition for Writ of Certiorari in the Circuit Court of the County. The Board shall act on the rate request within ninety (90) days. SECTION XX Prior to the Corporation placing any of its facilities in any of the public places as herein authorized, the Corporation shall make application to and obtain any required permits from the County authorizing said construction in the same manner as permits are authorized in the County for the use of the public roads as shall now or hereafter be established by regulations of the County. The County shall have the right when special circumstances exist to determine the time during which such construction shall be done. SECTION XXI i > If the Corporation fails or refuses to timely and faithfully UI fkeep, perform and abide by each and all of the terms and W conditions of this franchise, then the Board shall give the 4 Corporation written notice of such deficiencies or defaults and a U1 W reasonable time within which the Corporation shall remedy the same, which notice shall specify the deficiency or default. If the Corporation fails to remedy such deficiency or default within a reasonable time, the Board may thereafter schedule a hearing concerning the same with reasonable notice thereof to the Corporation, and after such hearing at which all interested parties shall be heard, the Board may levy liquidated damages of Fifty ($50.00) Dollars per day that said deficiency or default exists from the date of said hearing held by the Board; and the Board may further limit or restrict this franchise or franchise territory -or may terminate and cancel the same in whole or in part if proper reasons thereby are found by the Board. If the Board enters an order pursuant to such hearing and the Corporation feels aggrieved by any such order, the Corporation may seek review of the Board's action by filing a petition for Writ of Certiorari in the Circuit Court of the County. JUL a 0 a 0 .I 4 I U a W M 0 ff W 0 g W F a LL 9i W 2 0 1 SECTION XXII Nothing in this franchise shall prevent landowners from exercising their vested rights or privileges as setforth and contained in any license issued to any utility heretofore granted by the Board pursuant to Section 125.43, Florida Statutes. SECTION XXIII It is specifically agreed by and between the parties hereto that this franchise shall be considered a franchise agreement by and between Corporation and County and as such a contractual instrument recognized under the Statutes and Laws of the State of Florida. This Franchise Agreement is not intended to create rights or actions running in favor of third parties, except as herein specifically provided. SECTION XXIV Provisions herein to the contrary notwithstanding, the Corporation shall not be liable for the non-performance or delay in performance of any of its obligations undertaken pursuant to the terms of this franchise where said failure or delay is due to causes beyond the Corporation's control including, without limitation, causes such as, "Acts of God", unavoidable casualties, labor disputes, etc. IN WITNESS WHEREOF, the Board of County Commissioners of Indian River County, Florida has caused this franchise to be executed in the name of the County of Indian River by the Chairman of the Board of County Commissioners and its seal to be affixed and attested by its Clerk, all pursuant to the resolution of the Board of County Commissioners adopted on the 7th day of July , 1982. Signed, sealed and delivered COUNTY OF INDIAN RIVER, FLORIDA in the presence of: i By C✓' Cham n Board of County Commissioners Attest: Lanpdp.'Iegal oved as to form Clerk ffid c Srandenbur�y *y71 82my as acor 5® Put 1( 5 ,o q) W Z 0 JUL 7 1982 .0K F�,f �► �o . 17s1 ACCEPTANCE OF FRANCHISE NORTH BEACH WATER COMPANY, a Florida corporation, does hereby accept the foregoing franchise, and for their successors and assigns does hereby covenant and agree to'comply with and abide by all of the terms, conditions and provisions therein set forth and contained. DATED at ero Beach, Indian River County, Florida, this day of , 1982. WITNESS: NORTH BEACH WATER COMPANY By STATE OF FLORIDA COUNTY OF INDIAN RIVER I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the State and Countyfo esaid take acknowledgments, personally appeared as President of NORTH BEACH WATER COMPANY, a Florida corporation, and he acknowledged before me that he executed the foregoing instrument for the uses and purposes therein expressed. WITNESS my hand and official eal in the State and County aforesaid this '` .�.-�ay of , 1982. of ry Public, State of Florida' at Large My Commission expires: £arbari F. Mor:f,,n Nov,ry Public, Stats c' r: ri_'a at Largo' My Qrsnission Exp:ies Feb. 1a, 198 j 19 0 a i 0 W m 0 a W m 0 a a W 0 IL 0 W z 0 ROBERT A. CAIRNS, TRUSTEE The North 600.00 feet of the South 1100.00 feet of Government Lot 3, Section 25, Township 31 South, Range 39 East (measured along the East right-of-way line of State Road AlA) , lying East of State Road AlA, Indian River County, Florida. Commencing at the point of intersection of the north line of Government Lot 3, Section 25, Township 31 South, Range 39 East, Indian River County, Florida and the west right-of-way line of State Road AlA as it exists on the 10th day of March, 1981. es 54 minutes, 33 seconds E along From said point run S 24 degre the west right-of-way line of State -Road AlA a distance of 520.00 feet to the Point of Beginning. From the Point of Beginning, con- tinue S 24 degrees 54 minutes 33 seconds E along the west tright of -way line to State Road AlA a distance of 438.80 feet; run N 69 degrees hence 54 minutes 33 seconds W a distance of 620.56 05 minutes 27 seconds E a distance o' feet; thence run N 65 degrees 438.80 feet to the Point of Beginning. Containing 2.21 acres all lying within Government Lot 3, Section 25, Township 31 South, Range 39 East, Indian River County, Florida. Said 2.21 acres to be subject to Grant of Easement to Florida Land Company - Grantee, dated 4 June, 1981. SENTINEL COMMUNITIES, INC. a Florida Corporation and VERO BEACH ASSOCIATES, LTD. a Florida Limited Partnership, d/b/a FLORIDA COMMUNITIES LAND DEVELOPMENT CO. All of Government Lots 1 and 2 of Section 25, Township 31 South, Range 39 East together with all of Government Lots 8 and 9 and the south 411.84' of Government Lots 5 and 6 of Section 26, Town- ship 31 South, Range 39 East. Said land lying and being in Indian River County, Florida. FLORIDA LAND COMPANY, a Florida Corporation All of Government Lot 7, Government Lots 5 and 6 (less the south 411.84' thereof)and less that portion of Government Lot 5 describ as follows: Commencing at the Southwest corner of Government Lot 3, run West along the North line of Government Lot 5 a distance of 505.96 feet to the point of beginning, thence continue West along said line a distance 812 feet to the Northwest corner of said Government Lot 5, thence run South along the West line of said Government Lot 5 a distance of 21 feet, more or less, to the mean high water line of the Indian River, thence meander the said mean high water line in a Southeasterly direction to a point due South of the point of beginning; thence run North 125 feet, more or less, to the point of beginning, on the North line of said Government Lot 5. ALL in Section 26, Township 31 South, Range 39 East, Indian River County, Florida.. JUL 7 1982 EXHIBIT "A" 50 PA4717 J U L 7 1982 BAYTREE INVESTMENTS, LTD. a Florida Limited Partnership saox 50 PA,, j 178 All of Government Lot 1, Section 36, Township 31 South, Range 39 East, Indian River County, Florida less the following portions thereof: (a) The North 145.2' lying East of State Road AlA. (b) The South 70' lying East of State Road AlA. GORDON NUTT Government Lot 2 of Section 26, Township 31 South, Range 39 East, Subject to right-of-way for State Road 510 over North 40 feet of said Lot 2 and subject to existing right-of-way 100 feet wide for State Road A -1-A. Government Lot 1, Section 26, Township 31 South, Range 39 East, according to the official plat of the survey of said lands returned to the General Land Office by the Surveyor General, together with all riparian rights and all tenements and hereditaments thereunto belonging or in anywise appertaining; EXCEPTING, the North 25 feet thereof together with riparian rights, quit -claimed June 27, 1927, to Wabasso Bridge Commissioners of Indian River County, Florida, for highway purpose; ALSO EXCEPTING a parcel described as beginning at a point which is 316.9 feet East of the Northwest corner of said Government Lot 1, and 25 feet South of the North line of said Lot 1, thence East parallel to the North line of Lot 1, 183.5 feet to the high water line of the Atlantic Ocean; thence Southerly along said high water line about 115.4 feet, thence Westerly parallel to the North line of Lot 1, a distance of about 231.35 feet; thence North 105 feet to the point of beginning; containing one-half acre; together with riparian rights appendant or appurtenant thereto, conveyed to the Commissioners of Wabasso Bridge District on November 3, 1927, for public purposes. ALSO EXCEPTING a strip of land 100 feet wide situate over, through and across said Government Lot 1, Section 26, Township 31 South, Range 39 East, conveyed to the State of Florida for the use and benefit of the State Road Department of Florida on March 17, 1958, by Special Warranty Deed recorded in Official Records Book 35, Page 393, etc., Indian River County Records. EXHIBIT "A" a 0 M 0 j i U a W M 0 M W tl! m 0 1 Cd M W " 0 W W Z 0 LICENSE AGREEMENT THIS LICENSE AGREEMENT entered into this day of 1982, by and between NORTH BEACH WATER COMPANY, a Florida corporation (hereinafter referred to as "Licensee"), and SENTINEL COMMUNITIES, INC., a Florida corporation and VERO BEACH ASSOCIATES, LTD., a Florida limited partnership, d/b/a FLORIDA COMMUNITIES LAND DEVELOPMENT CO., and FLORIDA LAND COMPANY, a Florida corporation (hereinafter referred to as "Licensor"). WHEREAS, Licensee is a Florida corporation organized for the purpose of developing a reverse osmosis water system in Indian River County servicing a franchise territory as is more specifically described in Indian River County Resolution No. 89-59 ; and WHEREAS, Licensor is the owner of fee simple title in and to that certain real property described on Exhibit A attached hereto which property will comprise the reverse osmosis water plant site and access road -way to same; and WHEREAS, Licensor has agreed to grant a license to Licensee granting Licensee the right to use the real property of .Licensor pursuant to the terms and provisions set forth below. IT IS THEREFORE AGREED AS FOLLOWS: 1. For and in consideration of the sum of TEN DOLLARS ($10.00) and other valuable considerations, Licensor grants to Licensee an exclusive license to possess, occupy and use the property described on Exhibit A attached hereto for the purpose of installing and constructing thereon a reverse osmosis water treatment plant and associated facilities and for the further purpose of providing access thereto. 2. Said license shall commence with the execution of this License Agreement and shall terminate at such time as said property is no longer utilized for the purpose of maintaining and operating a reverse osmosis water treatment system and associated facilities thereon. 3. There shall be paid to the Licensor, an annual license fee which fee shall be equal to fifteen percent (150) of the market value of the property as determined by MAI appraisal, said JJUL 71989 a 0 M 0 J LL T 0 a W M 0 M W Ci CD 0 f W 0 4 01 W Z 0 1 JUL 71992 a'50 �P� r 180 MAI appraiser to be mutually selected by Licensor and Licensee. The cost of the initial appraisal and all subsequent appraisals shall be paid by the Licensee. The appraiser will arrive at the market value of the property based upon 'its value as undeveloped residential property. The appraiser shall assume, for these purposes, that zoning would permit six (6) residential units per acre, that water and sewer utilities and road access are available and that the property is otherwise suitable and useable for residential development in a manner consistent with development on adjoining properties. The initial appraisal shall take place as soon as practicable after the execution of this License Agreement and license fees shall be payable on the anniversary date of this License Agreement. The license fee shall be adjusted every five (5) years (commencing on the fifth anniversary of this Agreement) based upon a reappraisal of the property conducted by a MAI appraiser mutually selected by Licensor and Licensee. 4. The parties acknowledge that pursuant to Indian River County Resolution No. 82-59 (the franchise), should Indian River County elect to purchase the plant and system pursuant to the terms of the Franchise, Indian River County shall also have the right to purchase the real property which is the subject matter of this License Agreement pursuant to the following provisions: (a) The purchase price shall be an amount equal to the appraised market value as determined by the last,MAI reappraisal prepared prior to the exercise of the County's right to purchase. (b) Upon payment of the purchase price, Licensor will convey the property by Warranty Deed, which Deed will contain a right of reverter on the part of the Licensor as follows: "The above described property shall be used for water utility purposes only and road access thereto and in the event the property is used for any other purpose, without the prior written and recordable consent from the Grantor, legal and equitable title shall revert to the Grantor." 2 a 0 0 ILIL i U a W m 0 w m to 0 F 93 Ir F- 0 0 h. Ui W Z 0 5. Licensee may assign this Agreement to Indian River County (or a taxing unit thereof) without the consent of the Licensor. Licensee's rights hereunder are otherwise assignable only with the prior written consent of the Licensor, which consent will not be unreasonably withheld. 6. With respect to the rights of purchase referred to in this Agreement, Indian River County shall be construed as a third -party beneficiary of this License Agreement. Witnesses: NORTH BEACH WATER COMPANY By SENTINEL COMMUNITIES, INC. By 11 VERO BEACH ASSOCIATES, LTD. By STATE OF FLORIDA COUNTY OF INDIAN RIVER I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the State and County aforesaid to take acknowledgments, personally appeared , of NORTH BEACH WATER COMPANY, a Florida corporation, and he acknowledged before me that he executed the foregoing instrument for the uses and purposes therein expressed. WITNESS my hand and official seal in the State and County aforesaid this day of , 1982. II (NOTARY SEAL) J U L 7 1982 Notary Public, State of Florida at Large My Commission expires: 3 IWOK .50 PAu 181 JUL 71982 STATE OF FLORIDA COUNTY OF INDIAN RIVER pox 50 eAU- 182 I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the State and County aforesaid to take acknowledgments, personally appeared I , of SENTINEL COMMUNITIES, INC., a Florida corporation, and he acknowledged before me that he executed the foregoing instrument for the uses and purposes therein expressed. WITNESS my hand and official seal in the State and County aforesaid this day of , 1982. Notary Public, State of Florida at Large (NOTARY SEAL) My Commission expires: STATE OF FLORIDA COUNTY OF INDIAN RIVER I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the State and County aforesaid to take acknowledgments, personally appeared , of VERO BEACH ASSOCIATES, LTD., a Florida limited partnership, and he acknowledged before me that he executed the foregoing instrument for the uses and purposes therein expressed. WITNESS my hand and official seal in the State and County aforesaid this day of , 1982. (NOTARY SEAL) Notary Public, State of Florida at Large My Commission expires: 4 r The Board of County Commissioners recessed at 12:20 o'clock P.M. for lunch and reconvened with all members present at 1:40 o'clock P.M. Deputy Clerk Virginia Hargreaves took over from Deputy Clerk Janice Caldwell 'for the remainder of the meeting. PUBLIC HEARING - RIVER BEND WATER AND SEWER FRANCHISE' The hour of 9:30 o'clock A.M. having passed, the Deputy Clerk read the following Notice with Proof of Publication attached, to -wit: VERO REACH PRESS -JOURNAL Published Weekly Vero Reach, Indian River County, Florida COUNTY OF INDIAN RIVER: STATE OF FLORIDA --�-.,-•,..- Before the undersigned authority personally appeared J. J. Schumann, Jr. who on says that he is Business Manager of the Vero Beach Press -Journal, a weekly newspaper public Iw--- at Vero Beach in Indian River County, Florida; that the attached copy of advertisement, t in the matter ofaA BEND Franchise AM: RNER BEND UTIUTY COMPANY 8L9 e Or .,,. mer: Florida Land Compan)1 In the Court, Was 1860 Orange Arenee, PO Bos 44 ' L8 ; O Ytaaer Pork,FlorlAa 32789 --- ---^•- - fished in said newspaper In the IssUES Of June 15, 1982. - NOTICE OF PUBLIC NEARING The Public Nearing for the Riutiliver Bend water and sewerage system Wabasso Beach Park subject to the franchise regulations. There is a provision that should franchise se applicanyation franchise appllrstlon ahatl be heard at 9=3o -a.m., Wednesday, July 7, 1989, at the county the North Beach water company be approved, than River Bend would only hold a sewage Commission Chambers at the Indian River franchise. - Affiant further says that the said Vero Beach Press -Journal is a newspaper pub Iishl:::�u nty Administration Building 184D Sub Street, Yero Beach, Florida 39960. All interested parties are invited IfanythePerab vemate matters, anydecisionneeds made On the alcove matters, heshe will need a record to attend Vero Beach, in said Indian River County, and that the said newspaper has heret and will be given the opportunity to be heard at Of me proceedings, and for such pur. Poses, he -she may need to ensure that a been continuously published in said Indian River County, Florida, weekly and has been en ' that time. The franchise is dedicated to Providing water and sewer service to River as second class mail matter at the post office in Vero Beach, in said Indian River County, F • Bend subdivision, ver. batim record of the proceedings is made, which record includes the testimony in for a period of one year next preceeding the first publication of the attached copy of a•! The service area will be In the vicinity south evidence on which the appeal is based. Oa1e Crosby auuong eco add no�chh of Indian tisement; and affiant further says that he has neither paid nor promised any person, fir :;R ,the W"Bser Shares(alCauseway River Sendutility Co. corporation any discount, rebate, commission or refund for the purpose of securing this a :, In addition, the the franchise shall plan to ' Winter Park, Florida 32790. add water service to Summer Place and the tisement for publication in the said newspaper. - -- June 13,1982. ' _ Sworn to and subscribed before th" 00MIMI day of A.D. sin ss Manager) _I p��' -h 'k, (Clerk of the Circuit Court, Vdian River County, Florida) r� 04, (SEAL)' �S! memo: JUL 71982 Recommendation of staff is set out in the following 38 _ - .J • JUL 71982 50 '184 TO: The Honorable Members of the DATE: June 28, 1982 FILE: Board of County Commissioners THRU: Dr. C.B. Hardin, Jr., Ph.D. Acting County Administrator FROM: George Liner, Utilities Manager DESCRIPTION AND CONDITIONS Application for River Bend SUBJECT: Water and Sewer Franchise to be heard July 7, 1982 - REFERENCES: River Bend application was made by Florida Land Company, the same firm that operates the Bent Pine Franchise in a satisfactory manner. The background information as attached to this memorandum was presented to and reviewed by Commissioners at the meeting held 6/2/82:-- This public hearing was advertised in the Press Journal 6/15/82 and the county has proof of publication. The Board of County Commissioners preferred to review (with intent to approve) the franchise for the North Beach Water Company prior to approving the River Bend franchise. The public hearings for 7/7/82 are scheduled with North Beach Water Company being first. To answer some hydrology questions, experts were invited from C�eraghty and Miller, (Tom Tessier), St. John's River Water Management District, (Jim Fraisee),'and Sverdrup and Parcel, (John Robbins). At present, only the former two are scheduled to appear for the meeting. The franchise resolution the Commission had received was a result of several reviews and revisions. Florida Land Company had complied with all County requests except the objection to the manner of determining the price of the utility's land at a time the County plans to purchase the utility. Two alternatives are shown in the proposed resolution _(page 15). These do not include the request of County staff to establish the cost now and/or else give credit for connection fees as paid by home purchasers for plant capacity toward the purchase cost. It should be noted, the franchise is for the "River Bend Utility Company Water -and Sewerage System Franchise," a wholly owned corporation of Florida Land Company, organized expressly for this utility. ALTERNATIVES AND ANALYSIS This franchise resolution contains all financial benefits to pro- tect the interests of Indian River County. These include: 1) Payments are to be made to the County impact escrow fund in the amount of $651.20 (both water and sewer for each condo impact fee rated at 250 gallons per day). 2) There is the escalation clause as provided in the County impact ordinances. 3) Three percent of the annual gross receipts shall be paid to Indian River County as a utility tax. 4) Two and one-half percent of gross revenue will be accumulated for the capital maintenance escrow fund after being seeded by the corporation with $5,000.00. 5) If and when the utility is bought by the County, the maintenance escrow fund will be vested with the County. 6) There is a provision for a fine to be imposed by the Board for utility faults or deficiencies not corrected after a hearing for the problem. 7) The inspection fee of $20.00 per unit will apply during construction of the utility system for services the County will perform. If the North Beach Water Company is approved prior to.River Bend, then much of the information of River Bend's franchise resolution dealing with the water system becomes moot. River Bend's franchise will apply only as a sewage system franchise in this event because of the so-called "roll-over" clause; Section XXII. Service rates are set up as a different base rate for water and sewer service and usage rates as shown on the attached table (Exhibit A) of the application franchise. Examples of typical usage bills follow for a 5/8 X 3/4 meter: t Unit Usage 8000 Gallons Per Month 10,000 Gallons per Month Water 20.15 23.75 Sewer 24.25 28.75 TOTAL $44.40/month $52.50/month Note that the fixed usage rate of $1.80 per thousand gallons of water and $2.25 per thousand gallons of sewage are believed to be a bit of -a deterrent to wasting water; i.e. it helps promote conservation. RECOMMENDATION AND FUNDING - It is recommended that River Bend Franchise be approved - subject to consideration of North Beach Water Company. Attorney Brandenburg reported that the proposed Resolution is similar to the one considered this morning. He drew the Board's attention to the provision in Section XXII which states that if the North Beach Water Company franchise is granted prior to this franchise, then this franchise will be applicable only to sewer systems and service. He commented that if this franchise is approved, Florida Land will submit a clean draft which deletes all reference to a water system and that is what he would recommend. Mr. Brandenburg informed the -Board that the proposed franchise is satisfactory from a legal standpoint and he could recommend approval. Commissioner Fletcher asked if the proposed system will have an overflow vent to the Indian River and if there is JUL 71982 40 50. '5 JUL 7 1982 50 PAID 186 provision for a backup electrical system in event of problems brought about by a hurricane. Attorney Sundstrom, counsel for Florida Land Company, stated that the sewer system, which is for the River Bend - project only, envisions the total reuse of properly treated effluent for irrigation purposes, and provision for backup electrical is built in the system as required by the DER. He emphasized that the Board has both the promise of Florida Land Company and the guaranty from the permitting process. Commissioner Fletcher then inquired if the effluent will be stored in a pond, and Utility Director Liner did not know the design details at this point. Commissioner Fletcher noted that we are again at the point of granting a franchise without knowing about all these details, and Utility Director Liner pointed out that the franchise requires that all plans be submitted to the County before going to DER. Commissioner Fletcher stated that he gets the impression that we are relying on other agencies to handle this for us, and he had a problem with that. Attorney Sundstrom went into detail explaining the DER process and what they are considering in the future. He emphasized that the applicant has one existing system in this county, as well as three in other counties, and is well versed in all the requirements; their system is designed around all the required parameters and will meet all standards. Chairman Scurlock asked if anyone present wished to be heard. William Koolage of 816 26th Avenue wished to determine whether the County had adequate protection against a system that might go bankrupt as others in this county have been known to, and Chairman Scurlock felt there is adequate protection built in all the way through the franchise. Robert Reider of Reef Road wished to voice his concern on the issue raised by Commission Fletcher regarding "depending" on other governing agencies to pick up any possible flaws. He felt this onus should remain with the County Commission. Chairman Scurlock reviewed the safeguards, noting that we have a 3% franchise fee, a renewal and replacement fee, and a provision for the County to inspect the facilities, plus the DER requirements. Commissioner Wodtke pointed out that while the DER might have allowed some other type discharge, this Board made it clear that the only discharge allowed would have to be used for irrigation; nothing will discharge in the river. Attorney Sundstrom stated that river discharge would not be allowed in any event. He confirmed that Florida Land Company has promised on site discharge and that will be specified in the construction permit application. Commissioner Lyons asked if the Board would have the chance at the time the permit application is submitted'to say that possibly they don't have enough storage, etc., and Attorney Sundstrom stated that, speaking for his client, he just gave the Board the standing to do so. Commissioner Bird discussed distrust of depending on other governmental to detect possible problems and pointed out that we are a relatively small county with a relatively small staff which cannot rival the staff of the DER or St. John's Water Management District; we, therefore, must rely on their expertise to some degree. ON MOTION by Commissioner Lyons, SECONDED by Commissioner Bird, the Board unanimously closed the public hearing. JUL 7 1982 42 a 0 PAS1 7 J J U L 7 1982 o 50 f� Commissioner Fletcher inquired whether the Utility Department has any criteria set up for a certain elevation threshold or berm around a storage pond so that it would not overflow when we experience heavy rains. An engineer in the audience reported that DER criteria calls for 3' about the maximum storage level. ON MOTION by Commissioner Lyons, SECONDED by Commissioner Bird, the Board unanimously adopted Resolution 82-60 "River Bend Utility Company Water and Sewerage System Franchise" with the understanding that a copy will be submitted meeting the satisfaction of the Attorney and Chairman limited to sewer system only. RESOLUTION NO. 82-60 BE IT RESOLVED by the Board of County Commissioners of Indian River County, Florida: nimi/ mlr^" T This Resolution shall be known and may be cited as the "River Bend Utility Company Sewerage System Franchise". SECTION II For the purpose of this Resolution, the following terms, phrases, words and their derivations shall have the meaning given herein. When not inconsistent with the context, words using the present tense include the future, words in the plural number include the singular and vice versa. The word "shall" is always mandatory. (a) "County" is Indian River County, a political subdivision of the State of Florida. (b) "County Engineer" may be "County Administrator," or "Utilities Director." (c) "Corporation" is the Grantee of rights under this franchise, to wit: River Bend Utility Company, a Florida Corporation. (d) "Board" is the Board of County Commissioners of the County. (e) "Person" is any person, firm, partnership, associ- ation, corporation, company or organization of any kind. (f) "Territory" means the area located in Indian River County, Florida outside the corporate limits of any municipality as the same is more particularly defined and described herein. (g) "Sewerage System" shall mean and include any plant, system, facility or property used or useful or having the present capacity for the future use in connection with the collection, treatment, purification or disposal of sewage effluent and residue for the public and without limiting the generality of the foregoing.glefinition shall JUL 71982 L- 44 UL '` 1992 1 � 50 "-x.90 embrace treatment plants, pumping stations, intercepting sewers, pressure lines, mains, laterals and all necessary appurtenances and equipment and shall include all property rights, easements and franchises relating to any such system and deemed necessary or convenient for the operation thereof. (h) "Service" means supplying to a user the collection of sewage and the treatment of same. (i) "Hookup and/or Connection" is the connecting of potential user's property to the sewerage system in order to utinlize the Corporation's services. SECTION III There is hereby granted by the County to the Corporation the non-exclusive franchise, right and privilege to erect, construct, operate and maintain a sewerage system within the described territory as herein provided and for these purposes to charge for collection and disposal of sewage within the territory, and for these purposes to establish the necessary facilities and equipment and to lay and main- tain the necessary lines, pipes, mains and other appurten- ances necessary therefor in, along under and across the public alleys, streets, roads, highway and other public places of the County; provided, however, that the County reserves the right to permit the use of such public places for and all other lawful purposes and subject always to the paramount right of the public in and to such public places. The River Bend Utility Company shall, at all times during the life of this franchise, be subject to all lawful exercise of the police power and regulatory authority of the County and to such regulation as the County shall here- after by resolution provide. The Corporation shall supply the County with copies Of its Department of Environmental Regulation monthly operat- ing reports and trouble reports, if any. The right is hereby reserved to the County to adopt, in addition to the provisions herein contained and existing applicable resolutions or laws, such additional regulations as it shall find necessary in the exercise of the police power and lawful authority vested in said County, provided that such regulations shall be reasonable and not conflict with the rights herein granted and not in conflict with the laws of the State of Florida. The County shall have the right, but not the duty, to supervise all construction or installation work performed. SECTION IV The territory in which this franchise shall be appli- cable is all that part of Indian River County, Florida, located within the following described boundary lines, to wit: All of Government lot 5 less the West two acres and the South 411.84 feet; all of Government Lot 6 less the South 411.84 feet; and all of Government Lot 7 less the 100 -foot State Road A -1-A right-of-way; all located in Section 26, Township 31 South, Range 39 East in Indian River County, Florida. Subject to all easements of record. SECTION V It is expressly understood and agreed by and between the River Bend Utility Company and the County that the Corporation shall save the County and members of the Board harmless from any loss sustained by the County on account of any suit, judgment, execution, claim or demand whatsoever resulting from negligence, or intentional wanton, willful and reckless acts on the part of the River Bend Utility Company in the construction, operation or maintenance of the sewerage system under the terms of this franchise. The parties agree that in the construction of this section, the claim of any person resulting from negligence on the part of the Corporation may be prosecuted directly by such JUL 7 1982 52OK '50 PAU 191 -3- JU L 71982 sou 50' PAUF �. person against the Corporation. The County shall notify the Corporation promptly after presentation of any claim or demand. SECTION VI The Corporation shall maintain and operate its sewage plant and system and render efficient service in accordance with the rules and regulations as are or may be set forth by the Board from time to time, which shall include but not be limited to "Construction Specifications for Water Distribution and Sewage Collection Facilities" promulgated by Indian River County Utilities Department, July, 1980, or as amended. The County shall require the Corporation to comply with the above standards. Prior to the issuance of a construction permit, the Corporation's project engineer shall certify to the County that the design standards as set forth in said "Construction Specifications" of the Indian River County Utilities Department, July, 1980, or as amended, will be met by completion of the project as shown on the plans submitted. The Corporation shall cause said certification to be submitted to the County along with the Florida Department of Environmental Regulation applications and plans, for County review. Submission to the County for review may occur simultaneously with submission of said documents to the Florida Department of Environmental Regulation. Upon approval by the County of the plant and system, a permit shall be issued to the River Bend Utility Company for the construction thereof. Upon the completion of all construction of the sewage treatment plant and collection system, the project engineer for the Corporation shall certify, under seal, that the systems have been constructed substantially in accordance with the plans and specifications previously approved and that the systems meet all of the standards required by the County. The Corporation shall also submit to the County two sets of "as -built" drawings, consisting of one set in reproducable vellum and one set of regular blueprints. Upon receipt of certification from the engineer the County will issue a letter acknowledging the construction of the sewerage system. No service is to be provided to customers until such time as the County issues a letter of acknowledge- ment. The issuance of said letter shall not be unreasonably withheld. Corporation shall grant necessary easements to County without charge to connect the sewerage system to County's Master Sewerage System and such easements as are necessary to provide access to the sewer system. The Corporation shall pay a $1,000.00 franchise application fee at the time of the submission of the franchise resolu- tion. The corporation shall design all facilities within the Franchise Area to conform to the Indian River County Master Plan for utilities, when applicable. SECTION VII All of the facilities of the Corporation shall be constructed in accordance with the plans and specifications approved by the Department of Environmental Regulation of the State of Florida and the quantity and quality of collection and disposal of sewage shall at all times be and remain not inferior to the quality standards for public sewage collection and other rules, regulations and standards now or hereafter adopted by the Department of Environmental Regulation of the State of Florida, or other governmental body having jurisdiction. Whenever it is necessary to shut off or interrupt service for the purpose of making repairs or installations, the Corporation shall do so at such times as will cause the least amount of inconvenience to its consumers and, unless such repairs are unforeseen and immediately necessary, it shall give not less than five (5) days' notice thereof to its consumers for non -emergencies. JUL 7 1982 -5- Gal. r J U L 7 1982 5U PAU. 19 SECTION VIII (a) The Corporation shall have the authority to promul- gate such rules, regulations, terms and conditions covering the conduct of its business as shall be reasonably necessary to enable the Corporation to exercise its rights and perform its obligations under this franchise and to issue an uninter- rupted service to each and all of its consumers; provided, however, that such rules, regulations, terms and conditions shall not be in conflict with the provisions hereof or with the laws of the State of Florida and all of the same shall be subject to the approval of the Board. (b) If in the judgment of the Board of County Commis- sioners, any of the provisions of (a) above are unreasonable, the Corporation, before discretionary action is taken by the Board of County Commissioners, can request said Board that a group of arbitrators be appointed and such group shall consist of: 1. County Engineer 2. Corporation Engineer 3. One person selected by the above two persons and this Board of Arbitrators shall make recommendations to the Board of County Commissioners, but such recommenda- tions are not mandatory. Any final decision the Arbitrators or Board may have with respect to this franchise can be appealed to the Circuit Court of Indian River County by either party. SECTION IX All sewer mains and manholes and other fixtures laid or placed by the Corporation for the sewerage system shall be so located in the dedicated easements in the County after approval by County Engineer so as not to obstruct or interfere with other uses made of such public places already.installed. The Corporation shall, whenever practic- able, avoid interfering with the use of any street, alley or other highway where the paving or surface of the same would be disturbed. In case of any disturbance of County- owned pavement, sidewalk, driveway or other surfacing, the Corporation shall, at its own cost and expense and in a manner approved by the County Engineer, replace and restore all such surface so disturbed in as good condition as before said work was commenced and shall maintain the. restoration in an approved condition for a period of one (1) year. In the event that any time the County shall lawfully elect to alter or change the grade or to relocate or widen or otherwise change any such County -owned right- of-way, the Corporation shall, upon reasonable notice by the County, remove, relay, and relocate its fixtures at the Corporations's expense in the ordinary course of busi- ness. The Corporation shall not locate any of its facilities or do any construction which would create any obstructions or conditions which are or may become dangerous to the traveling public. In the event any such public place under or upon which the Corporation shall have located its facili- ties shall be closed, abandoned, vacated or discontinued, the Board may terminate such easement or license of the Corporation thereto; provided, however, in the event of this termination of easement, the party requesting such termination shall pay to the Corporation, in advance, its - cost of removal and relocation of the removed facilities in order to continue its service as theretofore existing, or the County shall retain an easement not less than ten (10) feet in width for the benefit of the Corporation and its facilities. SECTION X The Corporation shall not, as to rates, charges, service facilities, rules, regulations or in any other respect, make or grant any preference or advantage to any person or subject any person to any prejudice or disadvantage. SECTION XI (a) The Corporation shall furnish, supply, install and make available to any and all persons within the terri- tory making demand therefor, its public sewerage system, JUL 7 1982 -�- �o 59,kGf' .95 r ;JUL '71982 P�hs� -196 and shall provide such demanding person with its services and facilities; provided, however, that the Board may, upon application of the Corporation, extend time for providing such service to such demanding person. In the event the Corporation fails to provide its services and facilities as a sewer system to any area within the territory within the time specified by the Board, then in such event the County may, by resolution of the Board, limit, restrict and confine the territory to that area then being serviced by sewerage by the Corporation or such greater area as the Board shall determine; and thereafter, the territory shall be only the area set forth, in the resolution adopted by the Board. (b) The Corporation shall not be required to furnish, supply, install and make available its public sewerage system to any person within the franchise area unless the same may be done at such a cost to the Corporation as shall make the addition proposed financially feasible. Financially feasible shall mean that a fair and reasonable rate shall be realized by the Corporation for all its services under this franchise; that such rate of return on the net valuation of its property devoted thereto under efficient and economi- cal management. The burden of showing that a prospective service to the area is not financially feasible shall be the burden of the Corporation. SECTION XII The Corporation or its Shareholders shall not sell or transfer its plants or systems or corporate stock to another or transfer any rights under this franchise to another without the approval of the Board. No such sale or transfer after such approval shall be effective until the vendee, assignee or lessee has filed with the Board an instrument in writing reciting the fact of such transfer and accepting the terms of this franchise and agreeing to perform all of the conditions thereof. In any event, this franchise shall not be transferable and assignable until notice or request for transfer and assignment shall be given by the Corporation to the Board in writing accom- panied by a request from the proposed transferee, which application shall contain information concerning the finan- cial status and other qualifications of the proposed trans- feree and such other information as the Board may require. A public hearing shall be held on such request, of which notice shall be given by publication in a newspaper regularly published in the County at least one time not more than one month or less than one week preceding such hearing. Certified proof of publication of such notice shall be filed with the Board. The Board shall act within ninety (90) days upon such request. The consent by the Board to any assignment of this franchise shall not be unreasonably withheld. Any sale or transfer by the Corporation or Share- holders of the Corporation taking place contrary to the terms and conditions of this paragraph shall be considered by the Board to be a default by the Corporation under this franchise agreement and subject this franchise to termina- tion. SECTION XIII Corporation warrants adequate capacity to service existing or anticipated customers and agrees not to provide sewerage service unless adequate capacity is available at the time any new connection is made. SECTION XIV The rates charged by the Corporation for its service hereunder shall be fair and reasonable and designed to meet all necessary costs of the service, including a fair rate of return on the net valuation of its properties devoted thereto under efficient and economical management. The Corporation agrees that the County has the authority to enter into this franchise agreement and the regulation of said corporation. Corporation agrees that it shall be subject to all authority now or hereafter possessed JUL 7 1982 -9- ' 50 . oni IV r jUL 71982 6goK 50 P6 198 by the County or any other regulatory body having competent jurisdiction to fix just, reasonable and compensatory rates. When this franchise takes effect, the Corporation shall have authority to charge and collect but not to exceed the following schedule of rates, as contained in Exhibit A attached hereto, which shall remain effective until changed or modified as herein provided. Exhibit A hereby establishes a base facility rate structure whereby each customer shall pay his pro rata share of the fixed costs of the operation of the utility system keyed to the size of the meter serving his individual property. Additionally, the customer shall pay his pro rata share of the cost of the commodity of service rendered, for sewerage collected, treated, and disposed. In any event, the utility shall always be respon- sible for justifying its proposed rates and charges by the submission of accounting and engineering data to the Utilities Director. The County shall grant rates to the company which are just and reasonable which allow the utility a rate of return on the fair value of its property and systems and additions thereto. Rates and charges may be amended, upon proper justification, by Corporation after approval by the Board of County Commissioners at an appro- priate public hearing. Other provisions of this Resolution deal with the mechanisms of the setting of rates and charges. The Corporation shall have the right to include the value of its property dedicated to providing utility service in the establishment of utility rates. The rates to be charged can reflect a reasonable rate of return on a rate base that is inclusive of these items. CONNECTION CHARGE/Capacity Demand Fee Connection charge is $3,100.00 per ERC for sewer service. For the.purposes of this rate schedule, one Equivalent Residential Connection is equal to 350 gallons per day of water consumption or wastewater to be treated. One condominium unit is equal to 250/350 of an ERC or .7143 of an ERC. The basis for the connection charges and main extension charges as set forth herein has been structured by River Bend Utility Company with regard to two major but variable factors; first, the present level of construction costs, of sewerage collection, transmission and treatment facilities and their degree of treatment sophistication as prescribed by the Department of Environmental Regulation or body having jurisdiction over the matter. The County agrees that the schedule of connection charges set forth herein may be escalated based upon increases in utility construction costs as evidenced by the quarterly construction index published in Engineering New Record Magazine, "Construction Cost Index, 20 Cities." River Bend Utility Co. shall adjust the connection charges set forth herein semi-annually, with the first such adjustment to be not earlier than January 1, 1983. Any escalation shall not exceed the percentage difference between said construction cost index for the base period ending September 30, 1981, as compared with the period of comparison. The Corporation hereby agrees to pay to the County a franchise fee in the amount of 3% of the Corporation's annual gross receipts, derived from monthly service charges to defray the cost of regulation and for use of County rights-of-way and public places. The Corporation shall pay the 3% franchise fee quarterly. The Corporation shall supply the County with a copy of the Corporation's Annual Report and financial statements. Also, a letter from a CPA certifying that the 3 percent franchise fee and the 2 1/2 percent renewal and replacement account has been collected and disbursed in accordance with the terms of this agreement. SECTION XV Escrow Charges The River Bend Utility Company agrees to pay a fee in the amount of the currently imposed contribution in � JUL 71982 -11- Q 5o.pnu199 JUL 7 1992 nox 50 4F goo aid of construction for each unit in effect at the time of the issuance of a certificate of occupancy, as a contri- bution in aid of construction charge (for future connection to County sewage collection mains) as provided for in Ordin- ance 80-21, Section 3, Part B. The River Bend Utility Company further agrees to pay the sum of $285.60 per ERC for sewer plant capacity charge, as each unit is completed as the future plant capacity charges as provided for in Ordinance 80-22, Section 1 or according to the Ordinances in effect at the time of the issuance of a certificate of occupancy. The funds in the said escrow account shall be kept according to County's standard policies concerning the same with an annual accounting provided to company subject to the terms and conditions of this franchise contract. Throughout the term of this franchise, the Corporation shall be entitled to any and all interest which shall be paid annually on or before September 30th of each year to the Corporation. The Corporation shall be entitled to an accounting of said interest bearing account at any time upon request made by it to the County. (A) Should the County at any time within the ensuing seven (7) years acquire a sewage collection system and furnish sewer services to individual customers within the franchise territory, all sums of money remaining in said account shall become the absolute property of the County and the Corporation shall have no rights thereto. In such event, the Corporation shall be absolved from the obligation of payment of further connection charges to the County. In the event the above condition is not met by the County within seven (7) years from the date of this franchise agreement, the County shall have the following options: (1) Extend the franchise with all escrowed monies paid to the Corporation and further escrows discontinued. (2) The County shall have the right to purchase the Corporations's sewer plant at Corporation's original construction costs plus costs associated with capital addi- tions and expansions to the system less 3 1/2 percent depreci- ation per year or, in the alternative, Corporation's original construction costs plus costs associated with capital addi- tions and expansions less Corporation's actual depreciation of said plant during the seven (7) year period, at the County's option. In conjunction with the sewer plants' purchase, County shall purchase necessary land areas upon which the plant is located at the then market value of the real estate. Upon acquisition of the sewer plant and appurtenant real estate, County would then own the entire sewer system and would terminate this franchise and provide sewer utility service to the franchise territory. All accumulated escrow fees would vest in County. As regards the purchase of the necessary land areas upon which the plant is located, County shall first tender its offer to the Corporation. In the event the Corporation finds the offer inadequate, County and Corporation shall each select an appraiser to advise the respective parties as to the value of said land areas. In the event, after appraisal, County and Corporation are still unable to agree, said appraisors shall select a third appraiser to arbitrate the matter. The matter shall then be resolved in accordance with the Florida Arbitration Code. The decision reached in the arbitration process shall be final and binding on the respective parties. The Corporation agrees to grant to County any easements necessary to connect the franchise's sewerage system to the County's sewerage system without charge. (3) In the event that the above condition (2) is not exercised -by the County within seven (7) years from the date of this franchise agreement, any sums of money remaining in the escrow account shall become the absolute JUL 71982 .50 FAr,201 �. -13- ' FF,- JUL 7 1982 SOK , 50 Pduc 202 property of the Corporation and County shall allow the Corporation to continue operations in accordance with this franchise agreement. (4) The County shall have the following option to purchase the utility system after the end of the said 7 -year period, the County shall purchase according to the same formula in this sub -paragraph (2) above except that the County shall be entitled to a credit against the net purchase price payable by the County to the Corporation for the utility in the amount of the total escrow charges that would have been available to the County, pursuant to the provisions of Subparagraph (2) stated directly above, plus an additional credit for any fees which would have accrued pursuant to said section should the 7 -year period referenced therein not have lapsed. The Corporation agrees to grant to County any easements necessary to connect the franchise's sewerage system to the County's sewerage system without charge. (5) In the event of an acquisition by the County, or the utilization of County's own plants, the County shall receive the sewage collection system free of cost and in good repair, wear and tear accepted. B. Two and one-half percent (2-1/2%) of the gross receipts of the utility shall be placed in an interest bearing renewal and replacement account for purposes of renewal and/or maintenance of the capital assets of the utility Corporation. Additionally, the Corporation shall seed said account with five thousand dollars ($5,000.00) which will also be reserved for capital maintenance items. Said funds shall be used as a sinking fund and applied only for repairs and/or replacement of the sewerage system by the Corporation as the need arises; the amount of the renewal and replacement account may be revisited on an annual basis in order to maintain a satisfactory account balance, subject to the mutual consent of the parties hereto. County is granted the right to make necessary repairs using said funds in the event of default on the part of Corporation in maintaining the quality standards established herein. In the event County exercises its rights under (2) or (4) above, said fund shall vest in County. In the event that the County purchases the corpora- tion's utility system pursuant to the provisions of this franchise as stated above, then any funds in said renewal and replacement account shall vest in the County. SECTION XVI The Corporation shall at all times maintain public liability and property damage insurance in such amounts as set forth in Exhibit B attached hereto and incorporated herein by reference. The Corporation shall cause County to be duly notified by the Insuror in the event of any modifications or deletions of the insurance as set forth in said Exhibit B. Said amounts shall be adjusted by the Corporation, as shall be required from time to time by the Board in accordance with good business practices as determined by safe business standards as established by the Board for the protection of the County and the general public and for any liability which may result from any action of the Corporation. If any person serviced by the Corporation under this franchise complains to the Board concerning the rates, charges and/or operations of such utility and the Corporation, after request is made upon it by the Board, fails to satisfy or remedy such complaint or objections as not proper, the Board may thereupon, after due notice to such utility, schedule a hearing concerning such complaint or objection and the Board may review same according to the provisions herein. If the Board enters its order pursuant to such hearing and the Corporation feels it is aggrieved by such order, the Corporation may seek review of the Board's action by proceedings in the Circuit Court of the County; otherwise, the Corporation shall promptly comply with the order of the Board. J U L 2 -15- qK ,98 �� -50.,PSEn;J. JUL 71982 floK 50 F yr 204 SECTION XVII Should the Corporation desire to establish rates and charges or should the Corporation desire to increase any charges heretofore established and approved by the Board, then the Corporation shall notify the Board in writing, setting forth the schedule of rates and charges which it proposes. A public hearing shall then be on such request, of which notice shall be given by publication in a newspaper regularly published in said County at least one time not more than one month or less than one week preceding such hearing. Certified proof of publication of such notice shall be filed with the Board. Said hearing may thereafter be continued from time to time as determined by the Board. If the Board enters an order pursuant to such hearing and the Corporation or any person feels aggrieved by such order, then the Corporation or such person may seek review of the Board's action by proceeding in the Circuit Court of the County. The Board shall act on the rate request within ninty (90) days. SECTION XVIII Prior to the Corporation placing any of its facilities in any of the public places as herein authorized, the Corpor- ation shall make application to and obtain a permit from the County Engineer authorizing said construction in the same manner as permits are authorized in the County for the use of the public roads as shall now or hereafter be established by regulations of the County. The County shall have the right when special circumstances exist to determine the time in which such construction shall be done. SECTION XIX If the Corporation fails or refuses to promptly faith- fully keep, perform and abide by the terms and conditions of this franchise, then the Board shall give the Corporation written notice of such deficiencies or defaults and a reason- able time within which the Corporation shall remedy the same, which notice shall specify the deficiency or default. If the Corporation fails to remedy such deficiency or default within the time required by the notice from the Board, the Board may thereafter schedule a hearing concerning the same with reasonable notice thereof to the Corporation, and after such hearing at which all interested parties shall be heard, the Board may levy liquidated damages of $50.00 per day that said deficiency or default exists from the date of said hearing held by the Board; and the Board may further limit or restrict this franchise or may terminate and cancel the same in whole or in part if proper reasons thereby are found by the Board. If the Board enters an order pursuant to such hearing and the Corporation or any other person feels aggrieved by such order, the utility or such other person may seek review of the Board's action by proceedings in the Circuit Court of the County. . SECTION XX County shall have the right, but not the duty to make necessary inspections during construction and quarterly thereafter at the cost of Twenty Dollars ($20.00) per unit as covered by the permit fee herein to be paid by the Corpora- tion. The utility or corporation, as the case may be, shall pay the said inspection fee according to the number of units in each phase of its development at the time of the completion of the utility lines and facilities which will be utilized to provide service to said phase. This provision is subject to the escalation provisions contained above as regards the amount of inspection fees which the County shall be entitled to receive from the Corporation. SECTION XXI It is specifically agreed by and between the parties hereto that this franchise shall be considered a franchise agreement and as.such a contractural instrument recognized under the Statutes and Laws of the State of Florida. J U L 71982 800K .. 50 -,,. PnE X05 -17- JUL 71982 Boos 50 PAIJF 206 SECTION XXII If any word, sections, clause or part of this resolu- tion is held invalid, such portion shall be deemed a separate and independent part and the same shall not invalidate the remainder. IN WITNESS WHEREOF, the Board of County Commissioners of Indian River County, Florida has caused this franchise to be executed in the name of the County of Indian River by the Chairman of the Board of County Commissioners and its seal to be affixed and attested by its Clerk, all pur- suant to the resolution of the Board of County Commissioners adopted on the 7th day of July, 1982. Signed, sealed and delivered in the presence of: z � , z Z�z �_ COUNTY OF INDIAN RIVER, FLORIDA By i G Doug Scurlock; Chairm App;1egal ed as form,,,.,..,, and ficie y By Garandenburg CAttorney I kC ACCEPTANCE OF FRANCHISE RIVER BEND UTILITY COMPANY, a Florida Corporation, does hereby accept the foregoing franchise, and for their successors and assigns does hereby covenant and agree to comply with and abide by all of the terms, conditions and provisions therein set forth and contained. DATED at Vero Beach, Indian River County, Florida, this 89 day of July, 1982. WITNESS: STATE OF FLORIDA COUNTY OF INDIAN RIVER RIVER BEND UTILITY COMPANY By J es L. Clark, President I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the State and County aforesaid to take acknowledgments, personally appeared James L. Clark, as President of River Bend Utility Company, a Florida Corporation, and he acknowledged before me that he executed the foregoing instrument for the uses and purposes therein expressed. WITNESS my hand and official seal in the State and County aforesaid this ff'� day of July, 1982. Notary PublicL..T-r State of Florida ,1 My commission expires- !�" J U L 7 1982 -19- J J U L 7 1982 50 08 EXHIBIT A SEWER RATE SCHEDULE Meter Size (Water) 5/8"x3/4" 3/4" 1" 1%" 2 2" 3" 411 611 Base Facility Charge $ 6.25 9.38 15.63 31.25 50.00 100.00 156.25 312.50 Gallonage Charge - $2.25 per thousand (1000) gallons for all water consumed during the month. i -EXHIBIT Bit CERTInF'ICATE OF II�� CE This is to certify that the below mentioned Insurance Carriers have issued the following insurance policies and that the policies are in full force and effect until further notice. CERTIFICATE ISSUED TO: Indian River County CONTINENTAL RESOURCES COMPANY, ET AL Board of County Commissioners NAMED P.O. BOX 44 NAME INSURED WINTER PARK, FLORIDA 32790 and 1540 27th Street and ADDRESS Vero Beach, Florida 32790 ADDRESS *including Florida Land Co. L-Attn: County Attorney J L —( This Certificate of Insurance neither affirmatively nor negatively amends, extends or alters the coverage afforded by policies shown below TYPE OF INSURANCE POLICY NUMBER EFFECTIVE DATE EXPIRATION DATE LIMITS OF LIABILITY Worker's Compensation 46-WER-D11791E 4-1-80 Until Statutory Employer's Liability 46-WER-D11792E Cancelled $250,000.00 In conformance with the Compen- Including Maritime & All States Extensions HARTFORD INS. GROUP sation Law of the.State of Texas, La., Miss., Ala., Fla. and Elsewhere Comprehensive General 46-C-D11793E 4-1-80 Until $100,000.00 Each Occurrence Liability 46-JPR-D 11794W Cancelled Bodily Injury $100,000.00 Aggregate Products Property Damage 46-C-D11793E 4-1-80 Until $100,000.00 Each Occurrence $100,000.00 Aggregate Operations 46-JPR-D]1794W Cancelled Including Products & Completed Operations, Contractual, $100,000.00 Aggregate Protective $100,000.00 Aggregate Products XCU, Watercraft, Personal Injury & Extension to Co -Ventures HARTFORD INS. GROUP $100,000.00 Aggregate Contractual Comprehensive Automobile 46-C-D11793E 4-1-80 Until Liability Cancelled $250,000.00 Each Person Bodily Injury $ Included Each Occurrence Property Damage 46-C-D11793E 4-1-80 Until $ Included Each Occurrence Covers all Owned, Non -Owned Cancelled & Hired Automobiles HARTFORD INS. GROUP Con tro o e JHB-CJP-390 6-1-80 6-1-83 $10,000 „s Including Pollution Liability $20,000,000.00 Wglls over Water & Cleanup expense �.� ••- LLOYDS OF LONDON .Excess Liability Covering excess of the above policies $1,000,000.00 ea/occur. JHB-CJP-390 LLOYDS OF LONDON 6-1-80 6-1-83 REMARKS: r®til. In the event of any material change in, or cancellation of, said policies, the Insurance Carrier will endeavor to 30 Do) iitten notice to the party to whom this Certificate is issued, but failure to give such notice will not obligate the Insur nce Carrier or their repre- sentatives in any way. ARTHUR L. ON EN MNIPAINY, INC. (Authorized Representative) JUL 7 1982 1712 Commerce St. — Suite 2000 — Dallas, Texas 75201 14) 747-6500 Telex: AL OWEN DAL 73-0633 WP -101 3/81 -JUL '71982 r� oax 50„� 21® ofTVIE sr�T ��'� L� CIiS? of a e `yo F ,,r X:�• r STATE OF FLORIDA i t•,-:. o m a THE CAPITOL TALLAHASSEE 32301 c• +CCD w [ T PSS GEORGE FIRESTONE SECRETARY OF STATE 1 December 18, 1981 Florida Land/W. Aberwald P. 0. Box 44 Winter Park, Fl. 32790 Re; Charter Number 387571 ,. Ref #: 144 Dear Mr. Aberwald: This will acknowledge receipt of your Name -Change Amendment for RIVER BEND UTILITY COMPANY, which was filed on December 16, 1981. Your remittance totaling $30.00 has been received. Enclosed please find a certified copy. Should you have any questions regarding this matter, please telephone (904)487-1322, the Word Processing section. Sincerely, D. W. McKinnon, Director Division of Corporations DWM/wk "FLORIDA — STATE OF THE ARTS" enc nc WIN Bppartmpnt of-'tittp I certify that the attached is a true and correct copy of Certificate of Amendment to the Articles of. Incorporation of UNIVERSITY PARK UTILITIES COMPANY, changing its name to RIVER BEND UTILITY COMPANY, a Florida corporation, filed on December 16, 1981, as shown by the records of this office. The charter number of this corporation is 387571. fit. ,JJi, •�'T>e�n',,�,,. � � , C J CER 1011 Rev. 12-k0 JUL 71982 ften unber nip Ijanb anb tfje . great meal of tfje �tatr of �loriba, at cTallafja55ee, tIje Capital, tl)i5 tfje 18th Dap of December, 1981. Oeory jfirectonf irrrrtary of Mate aI 142-1-111V21VV1==:V;==', WO -1111v ,=:iii°:�i:°C`:(i✓='U:��aU:=�:U:%�(%=�U:= ZnrZnc�nc�ncEnZ, m'zz—, ty':Z nz&nr n apo 50 FAU211 (.DOK50 FAGF 212 19a2r_ LE C SEC:{i(#kF;',' SrA7E ARTICLES OF AMENDMENT tf l.L:.:I FI ORIDA UNIVERSITY PARK UTILITIES COMPANY Pursuant to Chapter 607, Florida Statutes, the undersigned hereby adopts the following Articles of Amendment to its Articles of Incorporation. •• I The name of the corporation is University Park Utilities Company. ' II The following ariendrrnnts to the Articles of Incorporation were adopi•cd by the directors of !:he Co:rporati.oa on 7, 1931, . and by the- stockholder of the Cor.` orat:iun on that same date in the manner by the 1. =.:s of the State of Florida and by -1-.he Articles of of i',e Corporation: RJE"'�OLVED: That the hi. Licl os of be, aiId --'nny i.(rc� 0I,!(..:1' -•d ):.y Ai'-i:l.t'1 1 .r ,!.0 .0 - ?:':1;?, -�o hit i_?1(3 A f tl.C1 ,S cj!_ �_.. •t7 a:_ ti7:.. :. �'�-1 35 r?1al.l• rr�,id ;is At:rle Z.- Noma Toe :?''Tt1C' of ,2 i.vt':(: ia.11d UtJ..I..t.t.1 (. ..til III All. t.;f t-.hC is ?;y x l.(lr �.:'. l r..:.:?tt� (.� .. ;t %i.iV, !1'. }I 71C f oby La Ll .! Les ..,Id 0 Executed by the undersign^d i?nivorsity Park Utilities Company at 14inter Park, Florida on this 7th day of Decr-:,iber-, 1.981. UNIVERSITY PARK UTILITIES CO,%SL'AIJY By William V. Morgan Senior.Vice President. ATTES ED: N. J,�! Aberwald Secretary (CORPORATE SEAL) Florida Land Company as 5o'Le stcc khclder of Uiiiwzrsi ty Park Utilities Company, hereby ra -i fres and :.:~proves aillE:ndi? bents of the of T::,-,Jrpo r. -,t L on as iiJ_ evious ly authorized. Da.tr^d as o[ Dc cc:iii.or 7, 1.0;31 AT m r 1 f J.ST 7 1T 1'.. J U L 71982 QOK 50 Fn.E 213 JUL� 7.1982 .. o 50 'PPCF 214 STATE OF FLORIDA ) COUNTY OF ORANGE ) Bn`ore me, the undersigned authority, on this day, personally appeared WILLI,,%M V. MORGAN and W. J. ABERWALD � and E. P. SHANAHAN and W. J. ABERWALD , kncan to - me to be the persons whose names are subscribed to the foregoing Articles of Amendment as Senior Vice President and Secretary of University Park Utilities Company, and Senior Vice President and Secretary Florida Land Company, respectively, and they acknowledged to me that they e-xecuted 'Che same for the purposes and consideration therein e_:pressed, in the capacity stated, and as the act and deed of said corporation. GIVEN UNDER MY HAND tiND STEAL OF OFFICE this 7th day of December, 1981. 1'.J Lc L'/ Public State of Florida at JLaLte My Commir,sion Expire -s: !!1:N;,.n.r ••,:,try . �:.Cty i?t'�)�.�. .t:t.: •iii .._.(�. a ! 'tt: '.a FLORIDA HIGHWAY PATROL PORTABLE RADIOS The Board reviewed the staff memo as follows: TO: Honorable Board of County DATE: June 29, 1982 FILE: Commissioners SUBJECT: Florida Highway Patrol Thru: C. B. Hardin, Jr., Ph. D. Portable Radios Acting County Administrator FROM: Lynn Williams / L; ,j REFERENCES: Acting General Services Director Descriptions and Conditions In May 1978 Mr. Norman A. Green, Esq. approached thei Board with a request to purchase hand-held radio units for the Florida Highway Patrolmen serving Indian River County. This request was granted as a co-operative effort enabling the Indian River County Sheriff's Department to maintain direct communications with the FHP during frequent emergency situations which require co-ordination between these two law enforcement agencies. Initially the Board granted funds for the purchase and a two year maintenance contract of five (5) hand-held units. The Florida Highway Patrol again -approached the Board in March of 1980 with a request for funds to purchase four (4) radar units to serve the troopers stationed in Indian River County. This request was approved and a formal agreement was entered into between Indian River County and the Florida Highway Patrol. The County retained ownership of these radar units and the Highway Patrol has maintained the equipment, as per this agreement. In a May 25th letter from Mr. Norman A. Green on behalf of the Florida Highway Patrol in Indian River County a request was set forth for the purchase of three (3) additional hand-held radio units and replacement batteries for the five (5) radio units previously purchased by the County in 1978. Also included in the request is a_service contract with Communications of Vero to provide repair and maintenance of the equipment. This agreement is necessary since the warranty expired in October 1980 and has not been renewed. Alternatives & Analysis All items requested are available from Communications of Vero, the firm from which the original five units were purchased. The actual costs to the County are listed below: $3,126 - 3 Hand-held G/E MPX 4 Channel, with case, charger, battery and one year warranty @ $1,042 each. $ 330 - 5 replacement batteries for existing Hand- held radios @ $66.00 each. JUL 7 1982 45�oK J� ?atr215 r JUL 7198oK 5E FAcf 216 $61. Per Month - 1 year service contract for 5.existing hand-- held radios @ $12.20 each per month. Recommendations and Funding Should the Board approve this request, staff would recommend the proration of the service contractp to coincide with the County's fiscal year. Staff also recommends inclusion of the service agreement costs in the Sherrif's budget for fiscal 182-83. No funds were budgeted for this expenditure, therefore, staff recommends the use of Board of County Commissioners' Contingencies Account.number 001-199-513-99.91 if request is approved. Attorney Norman Green came before the Board representing the Florida Highway Patrol and requesting that the Board authorize -the purchase of three additional hand-held radio units as explained in the above memo. MOTION WAS MADE by Commissioner Fletcher, SECONDED by Commissioner Lyons, to approve the request for purchase of hand-held radio units, replacement batteries and service contract as set out in staff memo dated June 29, 1982, funding to be from Account #001-199-513-99.91. Commissioner Wodtke noted that the memo states that the maintenance contract expired in 1980, and Attorney Green confirmed that it did and that Communications of Vero has been donating the maintenance service since that time pending this approval. There is no need for a service contract covering the new units at this time as they will be under warranty. THE CHAIRMAN CALLED FOR THE QUESTION. It was voted on and carried unanimously. Attorney Green wished it noted for the record that all the Highway Troopers in the County would strenuously urge the Board to adopt the ordinance to be considered this afternoon re prohibiting the sale of teflon coated ammunition. REQUEST OF ST. JOHN'S WATER MANAGEMENT DISTRICT TO DRILL TEST WELLS James Frazee, hydrologist with St. John's River Water Management District, came before the Board to request on behalf of the District that they be allowed to do test holes at both Round Island Park and Wabasso Beach Park for the purpose of identifying water quality and geologic information. These holes would be in the range of 120'-140' deep in both locations and would be used to sample the water level and quality in the shallow rock zone over a long enough period of time to develop a long term trend. Mr. Frazee stated that they will work with the recreation people as to location based on future plans and will try to drill during the period of lowest visitation. Discussion ensued as to whether these wells will be usable, and Mr. Frazee stated that so far the wells they have put in have been very productive and having these might help identify a future source. They are trying to locate the salt water/fresh water interface, and this is a very productive strata, but as to the wells being usable, he informed the Board that while they have in the past allowed installation of some type pump to use this water for fire control or some similar use, they generally would not recommend it for drinking water. In the case of the Forestry Service wells, when the St. John's District no longer needs them for monitoring, they would regress back to the Forestry Service for fire control, and possibly an agreement similar to that could be worked out with the County. J U L 7 1982 47 ��x 50 w217 J U L 7 1982 ma 50 Fq,F 218 ON MOTION by Commissioner Fletcher, SECONDED by Commissioner Lyons, the Board unanimously agreed to permit St. John's River Water Management District to install a test well at the Round Island Park and Wabasso Beach Park, the location of same to be coordinated between Parks Superin- tendent Cook and Mr. Frazee. Mr. Frazee commented that they would like to have some- thing in writing verifying this permission, and it was agreed that the Board Secretary would write Mr. Frazee accordingly. Discussion followed on the subject of uncapped wells and a possible cooperative program between the County and the District to deal with this problem. Mr. Frazee reported on the current program in Brevard County which involves capping 22 wells and noted the cost involved is about $75,000, which is being split three ways between the District, the county and the Aquarina Project. He noted that some of the big wells are quite expensive to cap. The Board indicated their interest in such a program, and Mr. Frazee stated that he would relay their feelings to the District. IMPROVEMENTS AT BLUE CYPRESS LAKE PARK Commissioner Bird informed the Board that the Parks & Recreation Committee had obtained a recommendation from the Health Department as to converting the existing well at Blue Cypress Lake Park to a safe drinking supply. They worked with the County Engineering Department to come up with plans for installing a chlorinator and slab and it is felt this work can be accomplished for under $500. ON MOTION by Commissioner Bird, SECONDED by Commissioner Lyons, the Board unani- mously authorized an expenditure of up to $500.00 for equipment needed to chlorinate the water at Blue Cypress Lake Park and a transfer to account #102-210-572-66.39 for funding for this purpose. APPROVAL OF AGREEMENT FOR DESIGN OF FOURTH COURTROOM John Calmes, Architect, was present, and Attorney Brandenburg explained the proposed procedure in which Mr. Calmes would interview those who would be using this courtroom and would then submit a plan, alternates, and a tentative budget, after which the Commission would instruct him as to what type of courtroom they would like designed. Commissioner Bird suggested that instead of conducting individual interviews, that potential user groups be brought together and the use of this room discussed at that time. Attorney Brandenburg agreed that the Commission could invite all these potential users to be present when Mr. Calmes presented his plan. He noted that the proposed contract is the standard AIA contract with modifications. Commissioner Fletcher complimented Attorney Brandenburg on the modifications and inquired whether we have to address both Phase I.and Phase II of the project today. Attorney Brandenburg noted that the contract covers both. He did not believe Mr. Calmes can give us a total estimate at this time for the reason that parts of his proposed program may possibly be found controversial and require some rework; he, therefore, cannot estimate the total time that may be involved. The Attorney noted that the hourly rate proposed is commensurate with that usually charged in this area. J U L 71982 49 �oK 50 PAA 219 JUL '71982 50 220 Commissioner Bird believed all could assist in bringing this information together as quickly as possible. MOTION WAS MADE by Commissioner Lyons, SECONDED - by Commissioner Fletcher, to authorize the Chair- man to sign the agreement between Architect Calmes and the County as submitted. Discussion ensued on funding, and Commissioner Lyons felt to play it safe we should have a "not to exceed" limit of $10,000, the funding to come from the construction account for the Courthouse and Annex. Commissioner Fletcher asked about a provision for an update as to on-going costs, and Attorney Brandenburg noted that Mr. Calmes wants to bill on a monthly basis, and we will have a running bill. He suggested that a "not to exceed" limit be placed on Phase I only as Phase II is based on a percentage of costs. Commissioner Lyons stated that he would agree to having the limit placed'on Phase I only, and Commissioner Fletcher concurred. THE CHAIRMAN CALLED FOR THE QUESTION on the Motion as rephrased, to authorize the Chairman to sign the agreement with Architect Calmes as submitted, including a "not to exceed" limit on Phase I of $10,000. It was voted on and carried unanimously. _0 THE AMERICAN INSTITUTE OF ARCHITECTS AIA Document B141 Standard 1. of Agreement Between Owner and Architect 1977 EDITION THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES; CONSULTATION WITH AN ATTORNEY 1S ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION AGREEMENT a made as of the day of June in the year of Nineteen Hundred and Eighty -Two BETWEEN the Owner: Indian River County, a political subdivision of the State of Florida and the Architect: John W. Calmes, A. I.A. , Architect Professional Association, 1125 12th Street, Suite B, Vero Beach, Florida 32960 For the following Project: See, Attachment #1 (include detailed description of Project location and scope.) The Owner and the Architect agree as set forth below. t� Copyright 1917, 1926, 1948, 1951, 1953, 1958, 1%1, 1963, 1966, 1%7, 1970, 1974, © 1977 by The American Institute of Architects, 1735 New York Avenue, N.W., Washington, D.C. 20006. Reproduction of the material herein or substantial quotation of its provisions without permission of the AIA violates the copyright laws of the United States and will be subject to legal prosecution. AIA DOCUMENT 9141 • OWNER -ARCHITECT AGREEMENT • THIRTEENTH EDITION • IULY 1977 • AIAO 1977 THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006 8141-1977 1 J U L 7 1982 51 t��aK 50 PAs -E221, JUL 7 1982 Dox 50 Pnr?�2 ATTACHMENT #1 PROJECT LOCATION: Indian River County } Courthouse Annex, 2nd Floor, 2145 14th Avenue Vero Beach, Florida 32960 SCOPE OF PROJECT: The scope of this project shall consist of two phases; Phase 1 - Program Development Phase 2 - Basic Services as described in Article 1, Section 1.1 through --Section 1.5 including normal structural, mechanical and electrical engineering services and those items included in Article 15 and those items specifically set forth below. PHASE 1: Phase 1 shall consist of the following: Architect shall prepare a program for a 4th Courtroom for the Indian River County Courthouse Annex, 2nd Floor. The Architect shall interview and ascertain the respective requirements of the Circuit Judges, County Court Judge, the Indian River County Bar Association, the Clerk of the Circuit Court and representatives of the County Commission for the construction of a 4th Courtroom for the Indian River County Courthouse., The Architect shall investigate existing conditions on -the 2nd Floor of the Courthouse Annex. Based upon conditions existing at the Courthouse Annex and information gathered from the interviews with respect to the needs of those who will be using the facility, the Architect will develop a basic project program with alternates with budget estimates of probable construction costs of each and shall present the basic project program together with alternates to the County Commission. The County agrees to review the basic project program and alternates and select a program from the basic program, alternates, a combination thereof, or the program as modified at the discretion of the Board and shall further establish a proposed project budget. Architect shall finish Phase 1 as soon as possible but, in any event, within one hundred and twenty (120) days of the execu- tion of this contract. PHASE 2: Architect shall design a 4th Courtroom for the Indian River _County Courthouse Annex, 2nd Floor, complete for use as intended, including but not limited to, all furnishings, audiovisual equipment, electrical, mechanical, structural and plumbing. Architect shall review the program selected by the County and proceed with schematic design phase, design development phase, construction document phase, bidding or negotiation phase and con- struction phase as set forth in Article 1, Section 1.1 through Section 1.5. ?'N TERMS AND CONDITIONS OF AGREEMENT BETWEEN OWNER AND ARCHITECT ARTICLE 1 ARCHITECT'S SERVICES AND RESPONSIBILITIES BASIC SERVICES The Architect's Basic Services consist of the - five phases described in Paragraphs 1.1 through 1.5 and include normal structural, mechanical and electrical engineering services and any other services included in Article 15 as part of Basic Services. 1.1 SCHEMATIC DESIGN PHASE 1.1.1 The Architect shall review the program furnished by the Owner to ascertain the requirements of the Project and shall review the understanding of such requirements with the Owner. 1.1.2 The Architect shall provide a preliminary evalua- tion of the program and the Project budget requirements, each in terms of the other, subject to the limitations set forth in Subparagraph 3.2.1. 1.1.3 The Architect shall review with the Owner alterna- tive approaches to design and construction of the Project. 1.1.4 Based on the mutually agreed upon program and Project budget requirements, the Architect shall prepare, for approval by the Owner, Schematic Design Documents consisting of drawings and other documents illustrating the scale and relationship of Project components. 1.1.5 The Architect shall submit to the Owner a State- ment of Probable Construction Cost based on current area, volume or other unit costs. 1.2 DESIGN DEVELOPMENT PHASE 1.2.1 Based on the approved Schematic Design Docu- ments and any adjustments authorized by the Owner in the program or Project budget, the Architect shall pre- pare, for approval by the Owner, Design Development Documents consisting of drawings and other documents to fix and describe the size and character of the entire Project as to architectural, structural, mechanical and elec- trical systems, materials and such other elements as may be appropriate. 1.2.2 The Architect shall submit to the Owner a further Statement of Probable Construction Cost. 1.3 CONSTRUCTION DOCUMENTS PHASE 1.3.1 Based on the approved Design Development Doc- uments and any further adjustments in the scope or qual- ity of the Project or in the Project budget authorized by the Owner, the Architect shall prepare, for approval by the Owner, Construction Documents consisting of Draw- ings and Specifications setting forth in detail the require- ments for the construction of the Project. 1.3.2 The Architect shall assist the Owner in the prepara- tion of the necessary bidding information, bidding forms, the Conditions of the Contract, and the form of Agree- ment between the Owner and the Contractor. 1.3.3 The Architect shall advise the Owner of any adjust- ments to previous Statements of Probable Construction Cost indicated by changes in requirements or general market conditions. 1.3.4 The Architect shall assist the Owner in connection with the Owner's responsibility for filing documents re- quired for the approval of governmental authorities hav- ing jurisdiction over the Project. 1.4 -BIDDING OR NEGOTIATION PHASE 1.4.1 The Architect, following the Owner's approval of the Construction Documents and of the latest Statement of Probable Construction Cost, shall assist the Owner in obtaining bids or negotiated proposals, and assist in awarding and preparing contracts for construction. 1.5 CONSTRUCTION PHASE—ADMINISTRATION OF THE CONSTRUCTION CONTRACT 1.5.1 The Construction Phase will commence with the award of the Contract for Construction and, together with the Architect's obligation to provide Basic Services under this Agreement, will terminate when final payment to the Contractor is Elue eF iR the abseRee 8f a f •t• ,. - ' made. --- - 1.5.2 Unless otherwise provided in this Agreement and incorporated in the Contract Documents, the Architect shall provide administration of the Contract for Construc- tion as set forth below and in the edition of AIA Docu- ment A201, General Conditions of the Contract for Con- struction, current as of the date of this Agreement. 1,5.3 The Architect shall be a representative of the Owner during the Construction Phase, and shall advise and consult with the Owner. Instructions to the Contrac- tor shall be forwarded through the Architect. The Archi- tect shall have authority to act on behalf of the Owner only to the extent provided in the Contract Documents unless otherwise modified by written instrument in ac- cordance with Subparagraph 1.5.16. 1.5.4 The Architect shall visit the site at intervals ap- propriate to the stage of construction or as otherwise agreed by the Architect in writing to become generally familiar with the progress and quality of the Work and to determine in general if the Work is proceeding in accord- ance with the Contract Documents. However, the Archi- tect shall not be required to make exhaustive or con- tinuous on-site inspections to check the quality or quan- tity of the Work. On the basis of such on-site observa- tions as an architect, the Architect shall keep the Owner informed of the progress and quality of the Work, and shall endeavor to guard the Owner against defects and deficiencies in the Work of the Contractor.See,Art .15 #1 1.5.5 The Architect shall not have control or charge of and shall not be responsible for construction means, methods, techniques, sequences or procedures, or for safety precautions and programs in connection with the Work, for the acts or omissions of the Contractor, Sub - AIA L)ULVMtNr 8141 • VWNER-ARCHITECT AGREEMENT - THIRTEENTH EDITION - JULY 1977 - AIA' - © 1977 THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006 JUL 7 1982 690 JUL 71982 contractors or any other persons performing any of the Work, or for the failure of any of them to carry out the Work in accordance with the Contract Documents. 1.5.6 The Architect shall at all times have access to the Work wherever it is in preparation or progress. 1.5.7 The Architect shall determine the amounts owing to the Contractor based on observations at the site and on evaluations of the Contractor's Applications for Payment, and shall issue Certificates for Payment in such amounts, as provided in the Contract Documents. 1.5.8 The issuance of a Certificate for Payment shall constitute a representation by the Architect to the Owner, based on the Architect's observations at the site as pro- vided in Subparagraph 1.5.4 and on the data comprising the Contractor's Application for Payment, that the Work has progressed to the point indicated; that, to the best of the Architect's knowledge, information and belief, the qual- ity of the Work is in accordance with the Contract Docu- ments (subject to an evaluation of the Work for con- formance with the Contract Documents upon Substantial Completion, to the results of any subsequent tests re- quired by or performed under the Contract Documents, to minor deviations from the Contract Documents cor- rectable prior to completion, and to any specific qualifica- tions stated in the Certificate for Payment); and that the Contractor is entitled to payment in the amount certified. However, the issuance of a Certificate for Payment shall not be a representation that the Architect has made any examination to ascertain how and for what purpose the Contractor has used the moneys paid on account of the Contract Sum. 1.5.9 The Arehileel shall be the of the ma the peFiefmaRee iheFeuRdell by both the QwRep-aP4 Cenlreeter. The Architect shall render interpretations nec- essary for the proper execution or progress of the Work with reasonable promptness on written request of either the Owner or the Contractor, and shall render written de- cisions, within a reasonable time. �&II claims disp ,.^� 1.5.10 Interpretations and sieRs-of the Architect shall be consistent with the intent of and reasonably inferable from the Contract Documents and shall be in written or graphic form. Sh6%Y lRartiaiity to either, and 9}all Ret li ' ' 1.5.11 The Architect's decisions in matters relating to artistic effect shall be final if consistent with the intent of the Contract Documents. The Fehr- decisieAs 1.5.12 The Architect shall have authority to reject Work which does not conform to the Contract Documents. Whenever, in the Architect's reasonable opinion, it is IaaK 50 f� � 224 1.5.14 The Architect shall prepare Change Orders for 14 4J to N 4 O 0 44 14 O necessary or advisable for the implementation of the intent O -r4 414-4 41 of the Contract Documents, the Architect will have author- U ity to require special inspection or testing of the Work in C: accordance with the provisions of the Contract Docu- r -I O H ments, whether or not such Work be then fabricated, in- 1 stalled or completed. ,o 1.5.13 The Architect shall review and approve or take N A O other appropriate action upon the Contractor's* submittals O O such as Shop Drawings, Product Data and Samples, but ' N V only for conformance with the design concept of the I~ W N Work and with the information given in the Contract M N a Documents. Such action shall be taken with reasonable O w .0 promptness so as to cause no delay. The Architect's ap- 4 V proval of a specific item shall not indicate approval of an V C assembly of which the item is a component. o cd 1.5.14 The Architect shall prepare Change Orders for � N 4 the Owner's approval and execution in accordance with 4J the Contract Documents, and shall have authority to order .,.c b 0 >1 minor changes in the Work not involving an adjustment in the Contract Sum or an extension of the Contract Time d O which are not inconsistent with the intent of the Contract c: ,r4 C O $4 Documents. O c N 1.5.15 The Architect shall conduct inspections to deter- mine the Dates of Substantial Completion and final com- pletion, shall receive and forward to the Owner for the Owner's review written warranties and related documents required by the Contract Documents and assembled by the Contractor, and shall issue a final Certificate for Pay- ment.' 1.5.16 The extent of the duties, responsibilities and lim- itations of authority of the Architect as the Owner's rep- resentative during construction shall not be modified or extended without written consent of the Owner, the Con- tractor and the Architect. N � H 3 14 to r -I O N N.0 N t.l to -c rO 4-J tU C N - `IS x c ul >1 - I r-1 4.) 4-+ C"., c t) r- 0 Jcc C O W •rte{ Q. 44 3WC 1.6 PROJECT REPRESENTATION BEYOND BASIC SERVICES �H 04 C 1.6.1 If the Owner and Architect agree that more ex- tensive representation at the site than is described in Paragraph 1.5 shall be provided,''- shall the vide one EIF mere Project Representatives to assist the owner Architect in carrying out such responsibilities at the site. 1.7 ADDITIONAL SERVICES The following Services are not included in Basic Services unless so identified in Article 15. They s a Or Set be provided if authorized or confirmed in writing by forth i the Owner, and they shall be paid for by the Owner pr ect as provided in this Agreement, in addition to the s compensation for Basic Services. 4 8141-1977 AIA DOCUMENT 8141 • OWNER -ARCHITECT AGREEMENT • THIRTEENTH EDITION • JULY 19 AIA®J• © 1977 THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WAS GTON,ZD.C. 2, (r**, 1.7.2 Providing financial feasibility or other special studies. 1.7.3 Providing planning surveys, site evaluations, envi- ronmental studies or comparative studies of prospective sites, and preparing special surveys, studies and submis- sions required for approvals of governmental authorities or others having jurisdiction over the Project. 1.7.4 Providing services relative to future facilities, sys- tems and equipment which are not intended to be con- structed during the Construction Phase. 1.7.5 Providing services to investigateexistiRg eeRdi4` ortarilities 9F to make measured drawings theieef; or to verify the accuracy of drawings or other information fur- nished by the Owner. of existing condition 1.7.6 Preparing documents of alternate, separate or sequential bids or providing extra services in connection with bidding, negotiation or construction prior to the completion of the Construction Documents Phase, when requested by the Owner. 1.7.7 Providing coordination of Work performed by separate contractors or by the Owner's own forces. 1.7.8 Providing services in connection with the work of a construction manager or separate consultants retained by the Owner. 1.7.9 Providing Detailed Estimates of Construction Cost, analyses of owning and operating costs, or detailed quan- tity surveys or inventories of material, equipment and labor. 1.7.11 Providing services for planning tenant or rental spaces. 1.7.12 Making revisions in Drawings, Specifications or other documents when such revisions are inconsistent with written approvals or instructions previously given, are required by the enactment or revision of codes, laws or regulations subsequent to the preparation of such doc- uments or are due to other causes not solely within the control of the Architect. 1.7.13 Preparing Drawings, Specifications and supporting data and providing other services in connection with Change Orders to the extent that the adjustment in the Basic Compensation resulting from the adjusted Con- struction Cost is not commensurate with the services re- quired of the Architect, provided such Change Orders are required by causes not solely within the control of the Architect. by- he-AwAes. 1.7.15 Providing consultation concerning replacement of any Work damaged by fire or other cause during con - struction, and furnishing services as may be required in connection with the replacement of such Work. 1.7.16 Providing services made necessary by the default of the Contractor, or by major defects or deficiencies in the Work of the Contractor, or by failure of performance of either the Owner or Contractor under the Contract for Construction. 1.7.17 Preparing a set of reproducible record drawings showing significant changes in the Work made duffing construction based on marked -up prints, drawings and other data furnished by the Contractor to the Architect. 1.7.18 Providing extensive assistance in the utilization of any equipment or system such as initial start-up or testing, adjusting and balancing, preparation of operation and maintenance manuals, training personnel for operation and maintenance, and consultation during operation. 1.7.19 Providing services;IftPF to the Owner- after 44e• final Gertifieette ior Payment,.. 1. 41.....PR Of toe fl -.4....0 Substantial/`.. ..I.. s: ..0 t4... \A/.'..L. is maC,. 1.7.20 Preparing to serve or serving as an expert witneoss ntractC in connection with any public hearing, arbitration pro- ceeding or legal proceeding. 1.7.21 Providing services of consultants for other than the normal architectural, structural, mechanical and elec- trical engineering services for the Project. 1.7.22 Providing any other services not otherwise in- cluded in this Agreement or not customarily furnished in accordance with generally accepted architectural practice. 1.8 TIME 1.8.1 The Architect shall perform Basic and Additional Services as expeditiously as is consistent with professional skill and care and the orderly progress of the Work. Upon request of the Owner, the Architect shall submit for the Owner's approval, a schedule for the performance of the Architect's services which shall be adjusted as required as the Project proceeds, and shall include allowances for peri- ods of time required for the Owner's review and approval of submissions and for approvals of authorities having jurisdiction over the Project. This schedule, when approved by the Owner, shall not, except for reasonable cause, be exceeded by the Architect. ARTICLE 2 THE OWNER'S RESPONSIBILITIES makeav abble at Arghitect's 2.1 The Owner shall-fe2ieinformation regarding requirements for We Project ' reques 514 -all Set f0i'th the Q.A.'ReF's design M, eenstraintsall avail- ble 2.2 If the Owner provides a budget for the Project it shall include contingencies for bidding, changes in the Work during construction, and other costs which are the responsibility of the Owner, including those described in this Article 2 and in Subparagraph 3.1.2. The Owner shall, at the request of the Architect, provide a statement of funds available for the Project, and their source. AIA DOCUMENT 8141 - OWNER -ARCHITECT AGREEMENT - THIRTEENTH EDITION - JULY 1977 - AIA® - ©1977 THE AMERICAN INSTITUTE Of ARCHITECTS, 1735 NEW YORK AVENU'E, N.W., WASHINGTON, D.C. llmo WME JUL '71982 JUL 71992 2.3 The Owner shall designate, when necessary, a rep- resentative authorized to act in the Owner's behalf with respect to the Project. The Owner or such authorized representative shall examine the documents submitted by the Architect and shall render decisions pertaining thereto promptly, to avoid unreasonable delay in the progress of the Architect's services. .4 The Owner shall furnish a legal description and a certified land survey of the site, giving, as applicable, grades and lines of streets, alleys, pavements and adjoin- ing property; rights-of-way, restrictions, easements, en- croachments, zoning, deed restrictions, boundaries and contours of the site; locations, dimensions and complete data pertaining to existing buildings, other improvements kind trees; and full information concerning available serv- ice and utility lines both public and private, above and below grade, including inverts and depths. 2.5 The Owner shall furnish the services of soil engi- neers or other consultants when such services are deemed necessary by the Architect. Such services shall include test borings, test pits, soil bearing values, percolation tests, air and water pollution tests, ground corrosion and resistivity Jests, including necessary operations for determining sub - oil, air and water conditions, with reports and appropri- ate professional recommendations. 2.6 The Owner shall furnish structural, mechanical, hemical and other laboratory tests, inspections and re- torts as required by law or the Contract Documents. 2.7 The Owner shall furnish all legal, accounting and in- surance counseling services as may be necessary at any time for the Project, including such auditing services as the Owner may require to verify the Contractor's Applica- tions for Payment or to ascertain how or for what pur- poses the Contractor uses the moneys paid by or on be- half of the Owner. 2.8 The services, information, surveys and reports re- quired by Paragraphs 2.4 through 2.7 inclusive shall be furnished at the Owner's expense, and the Architect shall be entitled to rely upon the accuracy and completeness thereof. NOR 50 ?AcE 226 signed, specified, selected or specially provided for by the Architect. 3.1.3 Construction Cost does not include the compen- sation of the Architect and the Architect's consultants, the cost of the land, rights-of-way, or other costs which are the responsibility of the Owner as provided in Arti- cle 2. 3,2 RESPONSIBILITY FOR CONSTRUCTION COST 3.2.1 Evaluations of the Owner's Project budget, State- ments of Probable Construction Cost and Detailed Estimates of Construction Cost, if any, prepared by the Architect, represent the Architect's best judgment as a design professional familiar with the construction indus- try. It is recognized, however, that neither the Architect nor the Owner has control over the cost of labor, mate- rials or equipment, over the Contractor's methods of de- termining bid prices, or over competitive bidding, market or negotiating conditions. Accordingly, the Architect cannot and does not warrant or represent that bids or negotiated prices will not vary from the Project budget proposed, established or approved by the Owner, if any, or from any Statement of Probable Construction Cost or other cost estimate or evaluation prepared by the Archi- tect. 3.2.2 No fixed limit of Construction Cost shall be estab- lished as a condition of this Agreement by the furnishing, propdsal or establishment of a Project budget under Sub- paragraph 1.1.2 or Paragraph 2.2 or otherwise, unless such fixed limit has been agreed upon in writing and signed by the parties hereto. If such a fixed limit has been estab- lished, the Architect shall be permitted to include con- tingencies for design, bidding and price escalation, to de- termine what materials, equipment, component systems and types of construction are to be included in the Con- tract Documents, to make reasonable adjustments in the scope of the Project and to include in the Contract Docu- ments alternate bids to adjust the Construction Cost to the fixed limit. Any such fixed limit shall be increased in the amount of any increase in the Contract Sum occurring after execution of the Contract for Construction. 2.9 If the Owner observes or otherwise becomes aware 3.2.3 If the Bidding or Negotiation Phase has not com- of any fault or defect in the Project or nonconformance menced within thre6 months after the Architect submits with the Contract Documents, prompt written notice the Construction Documents to the Owner, any Project thereof shall be given by the Owner to the Architect. budget or fixed limit of Construction Cost shall be ad - 2.10 The Owner shall furnish required information and justed to reflect any change in the general level of prices services and shall render approvals and decisions as ex- in the construction industry between the date of submis- peditiously as necessary for the orderly progress of the sion of the Construction Documents to the Owner and Architect's services and of the Work. the date on which proposals are sought. - 3.2.4 If a Project budget or fixed limit of Construction ARTICLE 3 Cost (adjusted as provided in Subparagraph 3.2.3) is ex- ceeded by the lowest bona fide bid or negotiated pro - CONSTRUCTION COST posal, the Owner shall (1) give written approval of an 3.1 DEFINITION increase in such fixed limit, (2) authorize rebidding or re - 3.1.1 The Construction Cost shall be the total cost or negotiating of the Project within a reasonable time, (3) if the Project is abandoned, terminate in accordance with estimated cost to the Owner of all elements of the Project designed or specified by the Architect. Paragraph 10.2, or (4) cooperate in revising the Project scope and quality as required to reduce the Construction 3.1.2 The Construction Cost shall include at current Cost. In the case of (4), provided a fixed limit of Construc- market rates, including a reasonable allowance for over- \� tion Cost has been established as a condition of this Agree- I. head and profit, the cost of labor and materials furnished ment, the Architect, without additional charge, shall mod - by the Owner and any equipment which has been de- ify the Drawings and Specifications as necessary to comply 6 6141-1977 AIA DOCUMENT B141 - OWNER -ARCHITECT AGREEMENT -THIRTEENTH EDITION -JULY 1977 IA® ©1977 ' THE AMERICAN INSTITUTE OF ARCHITECTS, 17,35 NEW YORK AVENUE, N.W., WASHINGTON, 20006 "r 1*11 l with the fixed limit. The providing of such service shall be the limit of the Architect's responsibility arising from the establishment of such fixed limit, and having done so, the Architect shall be entitled to compensation for all services performed, in accordance with this Agreement, whether or not the Construction Phase is commenced. ARTICLE 4 DIRECT PERSONNEL EXPENSE 4.1 Direct Personnel Expense is defined as the direct sal- aries of all the Architect's personnel engaged on the Proj- ect, and the portion of the cost of their mandatory and customary contributions and benefits related thereto, such as employment taxes and other statutory employee bene- fits, insurance, sick leave, holidays, vacations, pensions and similar contributions and benefits. ARTICLE 5 REIMBURSABLE EXPENSES 5.1 Reimbursable Expenses are in addition to the Com- pensation for Basic and Additional Services and include actual expenditures made by the Architect and the Archi- tect's employees and consultants in the interest of the Project for the expenses listed in the following Sub- paragraphs: 5.1.1 Expense of transportation in connection with the Project;Aith 1911"f -W' ttayel; long distance communications, and fees paid for securing approval of authorities having jurisdiction over the Project. 5.1.2 Expense of reproductions, postage and handling of Drawings, Specifications and other documents, excluding reproductions for the office use of the Architect and the Architect's consultants. 5.1.3 Expense of data processing and photographic pro- duction techniques when used in connection with Addi- tional Services. 5.1.4 If authorized in advance by the Owner, expense of overtime work requiring higher than regular rates. 5.1.5 Expense of renderings, models and mock-ups re- quested by the Owner. 5.1.6 Expense of any additional insurance coverage or limits, including professional liability insurance, requested by the Owner in excess of that normally carried by the Architect and the Architect's consultants. ARTICLE 6 PAYMENTS TO THE ARCHITECT 6.1 PAYMENTS ON ACCOUNT OF BASIC SERVICES 6.1.1 An initial payment as set forth in Paragraph 14.1 is the minimum payment under this Agreement. 6.1.2 Subsequent payments for Basic Services shall be made monthly and shall be in proportion to services per- formed within each Phase of services, on the basis set forth in Article 14. 6.1.3 If and to the extent that the Contract Time initially established in the Contract for Construction is exceeded or extended through no fault of the Architect, compensa- tion . for any Basic Services required for such extended period of Administration of the Construction Contract shall be computed as set forth in Paragraph 14.4 for Addi- tional Services. 6.1,4 When compensation is based on a percentage of Construction Cost, and any portions of the Project are deleted or otherwise not constructed, compensation for such portions of the Project shall be payable to the extent services are performed on such portions, in accordance with the schedule set forth in Subparagraph 14.2.2, based on (1) the lowest bona fide bid or negotiated proposal or, (2) if no such bid or proposal is received, the most recent Statement of Probable Construction Cost or.Detailed Esti- mate of Construction Cost for such portions of the Project. 6.2 PAYMENTS ON ACCOUNT OF ADDITIONAL SERVICES 6.2.1 Payments on account of the Architect's Additional Services as defined in Paragraph 1.7 and for Reimbursable Expenses as defined in Article 5 shall be made monthly upon presentation of the Architect's statement of services rendered or expenses incurred. 6.3 PAYMENTS WITHHELD 6.3.1 No deductions shall be made from the Architect's compensation on account of penalty, liquidated damages or other sums withheld from payments to contractors, or on account of the cost of changes in the Work other than those for which the Architect is held legally liable. 6.4 PROJECT SUSPENSION OR TERMINATION 6.4.1 If the Project is suspended or abandoned in whole or in part for more than three months, the Architect shall be compensated for all services performed prior to receipt of written notice from the Owner of such suspension or abandonment, together with Reimbursable Expenses then due and all Termination Expenses as defined in Paragraph 10.4. If the Project is resumed after being suspended for more than three months, the Architect's compensation shall be equitably adjusted. ARTICLE 7 ARCHITECT'S ACCOUNTING RECORDS 7.1 Records of Reimbursable Expenses and expenses per- taining to Additional Services and services performed on the basis of a Multiple of Direct Personnel Expense shall be kept on the basis of generally accepted accounting principles and shall be available to the Owner or the Owner's authorized representative at mutually convenient times. ARTICLE 8 OWNERSHIP AND USE OF DOCUMENTS 8.1 Drawings and Specifications as instruments of serv- ice are and shall remain the property of the-Afehiteet Owner whether the Project for which they are made is executed or not. AIA DOCUMENT 9141 • OWNER -ARCHITECT AGREEMENT • THIRTEENTH EDITION • JULY 1977 • AIA® 0 © 1977 E AME ��t� TjTUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006 Boot J U L 7 1982 8.2 Submission or distribution to meet official regulatory requirements or for other purposes in connection with the Project is not to be construed as publication in derogation of the Architect's rights. ARTICLE 9 ARBITRATION ARTICLE 10 TERMINATION OF AGREEMENT 10.1 This Agreement may be terminated by either party upon seven days' written notice should the other party fail substantially to perform in accordance with its terms through no fault of the party initiating the termination. 10.2 This Agreement may be terminated by the Owner upon at least seven days' written notice to the Architect in the event that the Project is peFfaeeR41y� abandoned. 10.3 In the event of termination not the fault of the Ar- chitect, the Architect shall be compensated for all services performed to termination date, together with Reimburs- able Expenses then due and all Termination Expenses as defined in Paragraph 10.4. Fr�tit 2 8 690K 50 10.4 Termination Expenses include expenses directly at- tributable to termination for which the Architect is not otherwise compensated, plus an amount computed as a percentage of the total Basic and Additional Compensa- tion earned to the time of termination, as follows: .1 20 percent if termination occurs during the Sche- matic Design Phase; or .2 10 percent if termination occurs during the Design Development Phase; or .3 S percent if termination occurs during any subse- quent phase. ARTICLE 11 MISCELLANEOUS PROVISIONS 11.1 !'-:'-s_ _thefw:__ __re_:`:...,, this Agreement shall be governed by the law of rhe,Atrehiieel Florida. 11.2 Terms in this Agreement shall have the same mean- ing as those in AIA Document A201, General Conditions of the Contract for Construction, current as of the date of this Agreement. 11.3 As between the parties to this Agreement: as to all acts or failures to act by either party to this Agreement, any applicable statute of limitations shall commence to run and any alleged cause of action shall be deemed to have accrued in any and all events not later than the rele- vant Date of Substantial Completion of the Work, and as to any acts or failures to act occurring after the relevant Date of Substantial Completion, not later than the date of issuance of the final Certificate for Payment. 11.4 The Owner and the Architect waive all rights against each other and against the contractors, consult- ants, agents and employees of the other for damages cov- ered by any property insurance during construction as set for in the edition of AIA Document A201, General Con- ditions, current as of the date of this Agreement. The Owner and the Architect each shall require appropriate similar waivers from their contractors, consultants and agents. ARTICLE 12 SUCCESSORS AND ASSIGNS 12.1 The Owner and the Architect, respectively, bind themselves, their partners, successors, assigns and legal representatives to the other party to this Agreement and to the partners, successors, assigns and legal representa- tives of such other party with respect to all covenants of this Agreement. Neither the Owner nor the Architect shall assign, sublet or transfer any interest in this Agreement without the written consent -of the other. ARTICLE 13 EXTENT OF AGREEMENT 13.1 This Agreement represents the entire and integrated agreement between the Owner and the Architect and supersedes all prior negotiations, representations or agree- ments, either written or oral. This Agreement may be amended only by written instrument signed by both Owner and Architect. AIA DOCUMENT 5141 • OWNER -ARCHITECT AGREEMENT • THIRTEENTH EDITION • JULY 1977 • AIA® • 8 8141-1977 THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, tZ� I F. MWA ARTICLE 10 TERMINATION OF AGREEMENT 10.1 This Agreement may be terminated by either party upon seven days' written notice should the other party fail substantially to perform in accordance with its terms through no fault of the party initiating the termination. 10.2 This Agreement may be terminated by the Owner upon at least seven days' written notice to the Architect in the event that the Project is peFfaeeR41y� abandoned. 10.3 In the event of termination not the fault of the Ar- chitect, the Architect shall be compensated for all services performed to termination date, together with Reimburs- able Expenses then due and all Termination Expenses as defined in Paragraph 10.4. Fr�tit 2 8 690K 50 10.4 Termination Expenses include expenses directly at- tributable to termination for which the Architect is not otherwise compensated, plus an amount computed as a percentage of the total Basic and Additional Compensa- tion earned to the time of termination, as follows: .1 20 percent if termination occurs during the Sche- matic Design Phase; or .2 10 percent if termination occurs during the Design Development Phase; or .3 S percent if termination occurs during any subse- quent phase. ARTICLE 11 MISCELLANEOUS PROVISIONS 11.1 !'-:'-s_ _thefw:__ __re_:`:...,, this Agreement shall be governed by the law of rhe,Atrehiieel Florida. 11.2 Terms in this Agreement shall have the same mean- ing as those in AIA Document A201, General Conditions of the Contract for Construction, current as of the date of this Agreement. 11.3 As between the parties to this Agreement: as to all acts or failures to act by either party to this Agreement, any applicable statute of limitations shall commence to run and any alleged cause of action shall be deemed to have accrued in any and all events not later than the rele- vant Date of Substantial Completion of the Work, and as to any acts or failures to act occurring after the relevant Date of Substantial Completion, not later than the date of issuance of the final Certificate for Payment. 11.4 The Owner and the Architect waive all rights against each other and against the contractors, consult- ants, agents and employees of the other for damages cov- ered by any property insurance during construction as set for in the edition of AIA Document A201, General Con- ditions, current as of the date of this Agreement. The Owner and the Architect each shall require appropriate similar waivers from their contractors, consultants and agents. ARTICLE 12 SUCCESSORS AND ASSIGNS 12.1 The Owner and the Architect, respectively, bind themselves, their partners, successors, assigns and legal representatives to the other party to this Agreement and to the partners, successors, assigns and legal representa- tives of such other party with respect to all covenants of this Agreement. Neither the Owner nor the Architect shall assign, sublet or transfer any interest in this Agreement without the written consent -of the other. ARTICLE 13 EXTENT OF AGREEMENT 13.1 This Agreement represents the entire and integrated agreement between the Owner and the Architect and supersedes all prior negotiations, representations or agree- ments, either written or oral. This Agreement may be amended only by written instrument signed by both Owner and Architect. AIA DOCUMENT 5141 • OWNER -ARCHITECT AGREEMENT • THIRTEENTH EDITION • JULY 1977 • AIA® • 8 8141-1977 THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, tZ� I ARTICLE 14 BASIS OF COMPENSATION The Owner shall compensate the Architect for the Scope of Services provided, in accordance with Article 6, Payments to the Architect, and the other Terms and Conditions of this Agreement, as follows: 14.1 AN INITIAL PAYMENT of One Thousand dollars ($1, 0 0 0 ) shall be made upon execution of this Agreement and credited to the Owner's account as follows: Owner will be given credit of One Thousand Dollars ($1,000.00) against compensation as provided hereunder. 14.2 BASI COMPENSATIONPhase 1 (Principal $55.00 per hour, Employees 2.75 times direct personnel expenses. Consultants 1.2 times amount billed Architect.; 14.2.1 FOR BASIC SERVICES, as described in Paragraphs 1.1 through 1.5, and any other services included in Article 15 as part of Basic Services, Basic Compensation shall be computed as follows: (Here insert basis of compensation, including fixed amounts, multiples or percentages, and identify Phases to which particular methods of compensa- tion apply, if necessary.) Ten percent (10%) of total contract price. 14.2.2 Where compensation is based on a Stipulated Sum or Percentage of Construction Cost, payments for Basic Services shall be made as provided in Subparagraph 6.1.2, so that Basic Compensation for each Phase shall equal the following percentages of the total Basic Compensation payable: (Include any additional Phases as appropriate.) Schematic Design Phase: Design Development Phase: Construction Documents Phase: Bidding or Negotiation Phase: Construction Phase: percent (15 %) percent (20 %) percent (40 %) percent( 5 %) percent (20 %) 74.3 FOR PROJECT REPRESENTATION BEYOND BASIC SERVICES, as described in Paragraph 1.6, Compensation shall be computed separately in accordance with Subparagraph 1.6.2. AIA DOCUMENT 8141 • OWNER -ARCHITECT AGREEMENT • THIRTEENTH EDITION • JULY 1977 • AIA®• © 1977 THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 200069141171-)9- JUL 7 60090 PAC,1992 JUL 71982 50 FA -230 14.4 COMPENSATION FOR ADDITIONAL SERVICES 14.4.1 FOR ADDITIONAL SERVICES OF THE ARCHITECT, as described in Paragraph 1.7, r , but excluding Additional Services of consultants, Compen- sation shall be computed as follows: (Here insert basis of compensation, including rates and/or multiples of Direct Personnel Expense for Principals and employees, and identify Principals and classify employees, if required. Identify specific services to which particular methods of compensation apply, if necessary.) Principal - Fifty-five dollars ($55.00) per hour Employees - 2.75 Times Direct Personnel Expense Reproduction charges 24" x 36" Blueprints _ $ 1.50 per sheet 24" x 36" 2nd Original Mylars 10.00 per sheet 8-1/2" x 11" 2nd Original Mylars 2.50 per sheet Copies .25 per sheet 1\. 14.4.2 FOR ADDITIONAL SERVICES OF CONSULTANTS, including additional structural, mechanical and electrical engineering services and those provided under Subparagraph 1.7.21 or identified in Article 15 as part of Addi- tional Services, a multiple of one and two—tenths ( 1.2 ) times the amounts billed to the Architect for such services. (ldentily''specific types of consultants in Article 15, if required.) 14.5 FOR REIMBURSABLE EXPENSES, as described in Article 5, and any other items included in Article 15 as Reim- bursable Expenses, a multiple ofOne and two—tenths ( 1.2 ) times the amounts ex- pended by the Architect, the Architect's employees and consultants in the interest of the Project. 14.6 Payments due the Architect and unpaid under this Agreement shall bear interest from the date payment is due at the rate entered below, or in the absence thereof, at the legal rate prevailing at the principal place of business of the Architect. (Here insert any rate of interest agreed upon.) Twelve percent (12%) (Usury laws and requirements under the Federal Truth in Lending Act, similar state and local consumer credit laws and other regulations at the Owner's and Architect's principal places of business, the location of the Project and elsewhere may affect the validity of this provision. Specific legal advice should be obtained with respect to deletion, modification, or other requirements such as written disclosures or waivers.) 14.7 The Owner and the Architect agree in accordance with the Terms and Conditions of this Agreement that: 14.7.1 IF THE SCOPE of the Project or of the Architect's Services is changed materially, the amounts of compensation shall be equitably adjusted. 14.7.2 IF THE SERVICES covered by this Agreement have not been completed within twelve 1(2 ) months of the date hereof, through no fault of the Architect, the amounts of compensation, rates and multiples set forth herein shall be equitably adjusted. 1� 13141-1977 AIA DOCUMENT 8141 - OWNER -ARCHITECT AGREEMENT - THIRTEENTH EDITION • JULY 1977 A®, p 1977 THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, P.C. 20006 Jar ARTICLE 15 _ OTHER CONDITIONS OR SERVICES 1. Architect shall visit the site and make an inspection at least once a week during the construction phase. 2. Architect will provide Owner with a set of reproducible drawings. 3. This Architectural Services Contract is intended to include a total Courtroom package, including but not limited to all furnishings, millwork, electrical, mechanical, structural, plumbing, and audiovisual as may be deemed necessary. 0 JUL 71982 AIA DOCUMENT $141 • OWNER -ARCHITECT AGREEMENT • THIRTEENTH EDITION • JULY 1977 • AIA® • ©1977 THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W.., WASHINGTON, D.C. 20006®�� JOL 71982 �nK 5Q pQrr, 2.32 This Agreement entered into as of the day and year first written above. OWNERr i Aer" ARCHITECT Dan C. Schlock, Jr. _ . -_ - n x, �0 Z' a", � ,, .�1•; '� i T' .�, Board of Cotmty Commissioners BY g Approved as o form and legai ie/ Y/, ` 12 B141-1977 AIA DOCUMENT B141 • OWNER -ARCHITECT AGREEMENT - THIRTEENTH EDITION - JULY 1977 - AIA® • @ 1977 THE AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006 e) BOND RESOLUTIONS - WATER & SEWER A. Combining All Water & Sewer Systems Attorney Brandenburg reported that the proposed Master Bond Resolution would allow the County to combine all outstanding water and sewer systems. He noted that the Finance Department at present must keep separate books for each project because each financing has separate requirements, and the intent is to bring all of the separate systems into one unified system and keep one set of books. He continued that Stan Livingood of Arch Roberts & Co., investment bankers, has indicated that FmHA has gone over this and concurs with the way it is written; our Bond Counsel drafted it and certainly concurs; and Attorney Brandenburg recommended approval. Commissioner Fletcher had questions as to money saved in relation to additional cost to implement this consolidation. Mr. Livingood, before answering Commissioner Fletcher's question, wished to clarify that while the Master Resolution definitely combines all pre-existing financings, which are held by one entity (the two Gifford systems and the South County system) and essentially accomplishes the same things as a refunding of the three issues, it does not totally eliminate all separate internal bookkeeping on the part of. the County. This is because FmHA has required, from a rate -making standpoint, that the County continue to keep records on revenues and expense bases for those three systems so that the integrity of the original intent of providing grant money can be maintained. Indications are that as the system grows and the total impact of the grants becomes much less, the separate bookkeeping system then could be eliminated. Mr. Livingood believed that there would be a nominal reduction in costs, however, and noted that separate sinking funds can be eliminated. JUL 71992 53 50, Z33z J U L '71992 690K 50 Community Services Director Thomas pointed out that although the savings, at this point, are indirect, this accomplishes the first step leading to a countywide uniform operation, and he believed we elected to do it at this time because.we are in the process of validating additional bonds and there would be practically no additional cost involved. He'believed this will result in less paperwork and that we also will be able to account for things in a better manner than before. Mr. Livingood reported that from the standpoint of the County's investment bankers, there has been and will be no out-of-pocket cost to the county for the restructuring and negotiating with FmHA on this consolidation. The time of county staff is an additional cost, but because the outstanding bonds are held by one entity as opposed to thousands of individual investors, the investment banker could deal with the one entity as opposed to have to refund the bonds and, therefore, there are no expenses associated with any financing in accomplishing this consolidation. Commissioner Fletcher asked Finance Director Barton if it was not indicated this consolidation would result in less bookkeeping, although apparently it will be necessary to keep the Gifford system separate for some years to come. Finance Director Barton stated that it was so indicated and this was a recommendation of the auditors last year. He noted that instead of having five different funds, they now have collapsed these all into one fund where they become several different departments in one fund. He further believed it is worthwhile to move towards being able to consolidate this in the future. Attorney Brandenburg wished to point out that any of the cost associated with producing this consolidation already has been borne by the county and we might as well take the benefit of it. Mr. Livingood then discussed consolidating the upcoming financing for the South Beach water system, which will have to be raised in the public markets, and emphasized that from a financial standpoint the restructuring and consolidation was an imperative because of the complexities involved between working with the FmHA financing and the proposed public market financing. He felt the administrative savings recommended by the auditors were merely a kind of spin-off benefit. ON MOTION by Commissioner Lyons, SECONDED by Commissioner Bird, the Board by a 4 to 1 vote, Commissioner Fletcher voting in oppo- sition, adopted Resolution 82-61 combining all water and/or sewer systems of Indian River County into one integrated system. J U L 71982° 50� 55 Jul 71982 RESOLUTION NO. 82-61 RESOLUTION COMBINING ALL WATER AND/OR SEWER SYSTEMS OF INDIAN RIVER COUNTY, FLORIDA, INTO ONE INTEGRATED SYSTEM; PLEDGING THE GROSS REVENUES OF SUCH COMBINED SYSTEM TO SECURE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON ALL WATER AND/OR SEWER REVENUE OBLIGATIONS OF THE COUNTY; REVISING CERTAIN COVENANTS IN THE RESOLUTIONS AUTHORIZING THE ISSUANCE OF ALL OUTSTANDING WATER AND/ OR SEWER REVENUE OBLIGATIONS OF THE COUNTY; AND PROVIDING FOR THE RIGHTS OF THE HOLDERS OF SUCH OBLIGATIONS. sc : 56 F � 236 BE I.T RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, as follows: ARTICLE I GENERAL 1.01 Definitions. When used in this Instrument, the following terms shall have the following meanings, unless the text clearly otherwise requires: "Amortization Installment," with respect to any Term Bonds of a series, shall mean an amount or amounts so designated which is or are established for the Term Bonds of such series, provided that the aggregate principal amount of such installments and/or the aggregate principal amount of the Federal Securities, hereinafter defined, purchased with such install- ments, as the case may be, for each maturity of Term Bonds of such series shall equal the aggregate principal amount of each maturity of Term Bonds of such series delivered on original issuance. "Annual Budget" shall mean the Annual Budget adopted by the Issuer pursuant to Section 3.04(A) of this Instrument. "Board" shall mean the Board of County Commissioners of the Issuer. "Bonds" shall mean, collectively, the outstanding Water and Sewer Revenue Bonds, Series 1979, dated August 30, 1979, and Water and Sewer Revenue Bonds, Second Series 1979, dated May 21, -1- -74 1981, -of the Issuer; the Water Revenue Bonds, Series 1980 (South County Water System), of the Issuer, authorized but unissued; and any obligations issued hereafter by the Issuer pursuant to the provisions of Section 3.04 (J) of this Instrument. "Bond Service Requirement" for any Bond Year, as applied to the Bonds of any series, shall mean the sum of: (1) The amount required to pay the interest becoming due on Bonds to which the Bond Service Requirement rela- tes during the Bond Year, except to the extent that such interest shall have been provided by payments into the Sinking Fund out of Bond proceeds for a specified period of time, and except as pro- vided in (4) below; (2) The amount required to pay the principal of Serial Bonds maturing during the Bond Year; (3) The amount of Amortization Installments for Term Bonds required to be deposited in the Bond Amortization Account during the Bond Year; and (4) In the event the Issuer has purchased or entered into an agreement to purchase Federal Securities from money in the Sinking Fund, then the income received or to be received on such Federal Securities from the date of acquisition thereof to the date of maturity thereof, shall be taken into con- sideration in calculating the payments which will be required to be made into the Sinking Fund. "Bond Year" shall mean the annual period ending on a Bond principal or interest maturity or payment date. "Chairman" shall mean the Chairman of the Board. "Clerk" shall mean the Clerk of the Circuit Court of Indian River County, Florida, ex officio Clerk of the Board. "Federal Securities" shall mean only direct obliga- tions of, or obligations fully guaranteed as to principal and interest by, the United States of America.. "Fiscal Year" shall mean the period commencing on October 1 of each year and continuing to and including the suc- ceeding September 30. "Gifford Bonds" shall mean the outstanding Water and Sewer Revenue Bonds, Series 1979, dated August 30, 1979, and -2- JUL 7 ass BOOK 50PAGE 237 JUL 71992 som 50 238 Water and Sewer Revenue Bonds, Second Series 1979, dated May 21, 1981, of the Issuer. "Government" shall mean the United States of America, acting through the Farmers Home Administration, U.S. Department of Agriculture. "Gross Revenues" shall mean all money received from rates, fees, rentals or other charges or income received by the Issuer or accruing to it in the management and operation of the System, including Impact Fees, all calculated in accordance with accepted accounting methods employed in the operation of public water and sewer systems similar to the System. "Impact Fees" shall mean the fees or charges lawfully imposed by the Issuer upon new customers of the System to finance all or a portion of the cost of additions, extensions and impro- vements to the System made necessary by the inclusion of such new customers. "Instrument" shall mean this resolution and all resolu- tions amendatory hereof which may be hereafter duly adopted by the Issuer. "Issuer" shall mean Indian River County, Florida. "Maximum Bond Service Requirement" shall mean, as of any particular date of calculation, the greatest amount of aggre- gate Bond Service Requirements for the then current or any future Bond Year. _ "Net Revenues" shall mean Gross Revenues less Operating Expenses. "Notes" shall mean the outstanding Water Revenue Bonds, Series 1980 (South County Water System), Anticipation Notes, dated May 1, 1981, of the Issuer. "Operating Expenses" shall mean the current expenses, paid or accrued, for the operation, maintenance and repair of all facilities of the System, as calculated in accordance with accepted accounting methods, and shall include, without limiting the generality of the foregoing, insurance premiums, administra- tive expenses of the Issuer related solely to the System, labor, cost of materials and supplies used for such operation and charges for the accumulation of appropriate reserves for current expenses not annually recurrent but which are such as may rea- sonably be expected to be incurred in accordance with such accepted accounting methods, but shall exclude payments into the -3- Sinking Fund or the Reserve Account therein and any allowance for depreciation or for renewals or replacements of capital assets of the System. "Operation and Maintenance Fund" shall mean the account created pursuant to the provisions of Section 3.04(D) of this Instrument for the purpose of receiving funds transferred from _ the Revenue Fund for the payment of Operating Expenses. "Renewal and Replacement Fund" shall mean the account created pursuant to the provisions of Section 3.04(E) of this Instrument, into which Gross Revenues shall be deposited for the purpose of financing renewals and replacements to the System. "Revenue Fund" shall mean the account created pursuant to the provisions of Section 3.04(B) of this Instrument, into which all Gross Revenues shall be deposited by the Issuer. "Serial Bonds" shall mean any Bonds for the payment of the principal of which, at the maturity thereof, no fixed man- datory sinking fund or bond redemption deposits are required to be made prior to the 12 month period immediately preceding the stated date of maturity of such Serial Bonds. "Sinking Fund" shall mean the account created pursuant to Section 3.04(C) of this Instrument, into which money shall be transferred from the Revenue Fund for the payment of the prin- cipal of and interest on the Bonds and, to the extent necessary, the Notes. "South County Water System Revenues" shall mean the gross revenues as defined in the resolution of the Board authorizing the issuance of the Notes. "System" shall mean the combined water and sewer facili- ties of the Issuer, together with any and all improvements, exten- sions and additions thereto hereafter constructed or acquired. "Term Bonds" shall mean the Bonds of a series, all of which shall be stated to mature on one date and which shall be subject to retirement by.operation of the.Bond Amortization Account. 1.02 Authority for this Instrument. This Instrument is adopted pursuant to the provisions of Ch. 125, Fla. Stat. (1981), and other applicable provisions of law. 1.03 Findings. JUL 71982 It is hereby found and determined that: -4- B®OK 50 PAvc 233 A 71981 wK 50 F»4 F 240 (A) The Issuer presently owns and operates a water system for the benefit of its inhabitants in southern Indian River County, Florida, more cormnonly known as the South County Water System, and presently owns and operates a water distribu- tion and sewage collection and treatment facility more commonly known as the Gifford facility, both of which are being operated as separate and independent utilities by the Issuer. It is necessary for the continued preservation of the health, welfare, convenience and safety of the Issuer and its inhabitants to com- bine such facilities into one integrated water and sewer facility. (B) The Government, the holder of the outstanding Gifford Bpnds and the prospective purchaser of the Water Revenue Bonds, Series 1980 (South County Water System), of the Issuer, has consented to the integration of the System and the adoption of this resolution. (C) The revenues to be derived annually from the rates, rentals, fees and other charges made and collected for the ser- vices and facilities of the System will be sufficient to pay, as the same shall become due and payable, the principal of and interest on the Bonds and the Operating Expenses. (D) It is deemed necessary and desirable to substitute certain provisions of this resolution for certain provisions of the resolutions authorizing the Bonds, and to pledge the Gross Revenues to the payment of the principal of and interest on the Bonds and the Notes. The lien upon and pledge of the South County Water System Revenues in favor of the holders of the Notes will be prior and superior to the lien thereon of the holders of the Bonds No part of the Gross Revenues have been pledged or hypothecated except with respect to the Bonds and the Notes. (E) This Instrument is declared to be and shall consti- tute a contract between the Issuer and all of the holders of the Bonds and the Notes; and the covenants and agreements herein set forth to be performed by the Issuer are and shall be for the equal benefit, protection and security of all of the legal holders of any and all of the Bonds and the Notes, all of which shall be of equal rank and without preference, priority or distinction of any of the Bonds and Notes over any other, except as hereinafter provided. (F) The Issuer is not, under this Instrument, obligated to levy any ad valorem taxes on any real or personal property situated within its corporate territorial limits to pay the prin- cipal of or interest on the Bonds and the Notes or to pay -5- Operating Expenses. The Bonds and the Notes shall not constitute a lien upon the System or any other property of the Issuer or situated within its corporate territorial limits. 1.04 Water and Sewer Facilities Combined. All the water and/or sewer facilities of the Issuer are hereby combined into one integrated water and sewer facility, herein described as the System. ARTICLE II AUTHORIZATION, TERMS, EXECUTION AND REGISTRATION OF BONDS 2.01 Incorporation of Prior Provisions. All provisions in the resolutions authorizing the Bonds and the Notes with respect to the authorization, terms, execution, registration and form of the Bonds and the Notes are hereby incorporated herein by reference. ARTICLE III COVENANTS, SPECIAL FUNDS AND APPLICATION THEREOF 3.01 Bonds Not to Be Indebtedness of Issuer. Neither the Bonds, nor the Notes, nor the coupons attached thereto shall be or constitute general obligations or an indebtedness of the Issuer as "bonds" within the meaning of Art. VII, §12, Fla. Const. (1968), but shall be payable from and secured by a lien upon and pledge of the Gross Revenues as herein provided, and, with re- spect to the Notes, shall be additionally secured as provided in the resolution authorizing the issuance of the Notes. No owner or holder of any Bond or Note, or coupon appertaining thereto, shall ever have the right to compel the exercise of any ad valorem taxing power to pay such Bond, Note or coupon or Operating Expenses, or be entitled to payment of such Bond, Note or coupon from any money of the Issuer except from the Gross Revenues or other funds of the Issuer in the manner provided herein and in the resolution authorizing the issuance of the Notes. 3.02 Security for Bonds and Notes. The payment of the principal of and interest on the Bonds and the Notes shall be secured as provided in the resolutions authorizing their issuance; provided, however, that all references in such resolu- tions to the "System"' and the "Gross Revenues" shall be deemed to mean the System and the Gross Revenues, respectively, as defined IM JUL 71982 ��°� 50 PAG E2-41. J U L 7 1982 SOCK 50 PAGF 242 in this Instrument; and further provided, however, that the lien upon and pledge of the Gross Revenues in favor of the holders of the Bonds shall be junior, subordinate and inferior to the lien upon and pledge of the South County System Revenues in favor of the holders of the Notes, but the lien upon a pledge of the Gross Revenues, excluding the South County Water System Revenues, in favor of the holders of the Notes shall be junior, subordinate and inferior to the lien thereon in favor of the holders of the Bonds. 3.03 Application of Bond and Note Proceeds. The provi- sions in the resolutions authorizing the Bonds and the Notes with respect to the application of the proceeds of the sale of the Bonds and the Notes are hereby incorporated herein by reference, except that any surplus funds remaining on deposit in the various Construction Funds after completion of the applicable projects shall be deposited into the Sinking Fund, created and established by this resolution; subject, however, to the prior lien of the holders of the Notes on the proceeds of the sale of the Notes. 3.04 Covenants of the Issuer. So long as any of the principal of or interest on any of the Bonds or the Notes shall be outstanding and unpaid, or until there shall have been set apart in the Sinking Fund, including the Reserve Account therein, a sum sufficient to pay, when due, the entire principal of the Bonds and the Notes remaining unpaid, together with interest accrued and to accrue thereon, the Issuer covenants with the holders of any and all of the Bonds and the Notes as follows: (A) Annual Budget of Operating Expenses. The Issuer covenants and agrees that on or before the first day of each Fiscal Year during which any of the Bonds or Notes are outstanding, it will adopt an Annual Budget of Operating Expenses for the ensuing Fiscal Year, and will mail a copy of such Annual Budget or amendments thereto to any requesting holder of Bonds or Notes. The Issuer covenants that the Operating Expenses incurred in any year will not exceed the reasonable and necessary amounts required therefor, and that it will not expend any amount or incur any obligations for the operation, maintenance and repair of the System in excess of the amount provided for Operating Expenses in the Annual Budget, except upon resolution of the Board that such expenses are necessary to operate and maintain the System. (B) Revenue Fund. The Issuer covenants and agrees that it will establish with a depository in the State of Florida, which is a member of the Federal Deposit Insurance Corporation and which is eligible under the laws of the State of Florida to receive county funds, and maintain so long as any of the Bonds and Notes are outstanding, a special fund to be known as the "Indian River County Water and Sewer System Revenue Fund." Into the Revenue Fund the Issuer shall deposit promptly as,received all -7- Gross Revenues. The Revenue Fund shall be held by the Issuer separate and apart from all other funds and shall be expended and used only in the manner and order specified in this subsection (B) and in subsections (C), (D), (E) and (F) of this section; provided, however, that Impact Fees shall be used only in the manner specified in subsections (C) and (E) of this section. (C) Bond and Interest Sinking Fund. The Issuer cove- nants and agrees to establish with a depository in the State of Florida, which is a member of the Federal Deposit Insurance Corporation, and which is eligible under the laws of the State of Florida to receive county funds, a special fund or funds, collec- tively called the "Indian River County Water and Sewer System Sinking Fund," to be used exclusively for the purposes hereinafter mentioned. The Issuer shall transfer on or before the 15th day of each month from the Revenue Fund and deposit to the credit of the Sinking Fund the following amounts: (1) A sum equal to 1/6 or 1/12, as the case may be, of the amount of one year's interest on all the Bonds then outstanding, together with the amount of any deficiency in prior deposits for interest; and (2) A sum equal to 1/12 of the principal of the Serial Bonds maturing on the next succeeding anniversary date, together with the amount of any deficiency in prior deposits for principal. (3) Into the Bond Amortization Account on a parity with the deposits provided in subsection (C)(2) above, a sum equal to 1/12 of the amount of the Amortization Installments for Term Bonds which shall become due and payable during the current Bond Year, plus the amount of the premium, if any, on a principal amount of such Term Bonds equal to the amount of such Amortiza- tion Installment which would be payable on the next maturity date if such principal amount of Term Bonds were to be redeemed prior to their maturity from money held in the Bond Amortization Account. If, at the stated dates of maturity of any Term Bonds, the proceeds on deposit in the Bond Amortization Account are insufficient to retire the principal amount of maturing Term Bonds remaining outstanding, the Issuer shall transfer from the Reserve Account to the Bond Amortization Account sufficient money to make up such deficiency. (4) After fulfillment of the requirements of subsec- tions (C)(1), (2) and (3), the Issuer shall transfer on or before the 15th day of each month from the Revenue Fund and deposit to the credit of a Reserve Account in the Sinking Fund the sum of -8- JUL 71982 ®o 50. %E24.3 J U L 7 1992 52ox 50 eA,r, 244 1/12 of 20% of the Maximum Bond Service Requirement until such time as the funds and investments therein shall equal the Maximum Bond Service Requirement, and monthly thereafter such amount as may be necessary to maintain in the Reserve Account the Maximum Bond Service Requirement, but not exceeding 1/12 of the Maximum Bond Service Requirement monthly. Money in the Reserve Account shall be used only for paying the principal of and interest on and Amortization Installments for the Bonds in the event that the other money in the Sinking Fund shall ever be insufficient to meet such payments. (5) Impact Fees on deposit in the Sinking Fund shall only be applied pursuant to subsections (C)(1), (2), (3) and (4) with respect to Bonds allocated to finance the cost of additions, extensions and improvements to the System made necessary by the inclusion of new customers of the System. (6) Money held for the credit of the Bond Amortization Account shall be applied to the retirement of Term Bonds as follows: (a) Subject to the provisions of paragraph (c) below, the Issuer shall endeavor to purchase Term Bonds then outstanding at the most advantageous price obtainable with reasonable diligence, such price not to exceed the principal of such Term Bonds plus the amount of the premium, if any, which would be payable on the next redemption date to the holders of such Term Bonds if such Term Bonds should be called for redemption on such date from money in the Bond Amortization Account. The Issuer shall pay the interest accrued on such Term Bonds to the date of delivery thereof from the Sinking Fund and the purchase price from.the Bond Amortization Account, but no such purchase shall be made by the Issuer within the period of 45 days immediately pre- ceding any interest payment date on which Term Bonds are subject to call for redemption, except from money in excess of the amounts set aside or deposited for the redemption of Term Bonds. (b) Subject to the provisions of paragraph (c) below, whenever sufficient money is on deposit in the Bond Amortization Account to redeem $5,000 or more principal amount of Term Bonds, the Issuer shall call for redemption from money in the Bond Amortization Account such amount of Term Bonds then subject to redemption as, with the redemption premium, if any, will exhaust the money then held in the Bond Amortization Account as nearly as may be practicable. Prior to calling Term Bonds for redemption, the Issuer shall withdraw from the Sinking Fund and from the Bond Amortization Account and set aside in separate accounts or depo- sit with the paying agents the respective amounts required for paying the interest on and the principal of and redemption pre- mium applicable to the Term Bonds so called for redemption. (c) Money in the Bond Amortization Account shall be applied by the Issuer in each Bond Year to the retirement of Term Bonds then outstanding in the following order: (i) The Term Bonds of each issue of Bonds to the extent of the Amortization Installment, if any, for such Bond Year for the Term Bonds of each such issue then outstanding, plus the applicable premium, if any, and, if the amount available in such Bond Year shall not be sufficient therefor, then in propor- tion to the Amortization Installment, if any, for such Bond Year for the Term Bonds of each such issue then outstanding, plus the applicable premium, if any; provided, however, that if the Term Bonds of any such issue shall not then be subject to redemption from money in the Bond Amortization Account and if the Issuer shall at any time be unable to exhaust the money applicable to the Term Bonds of such issue under the provisions of this clause or in the purchase of such Term Bonds under the provisions of paragraph (a) above, such money or the balance of such money, as the case may be, shall be retained in the Bond Amortization Account and, as soon as it is feasible, applied to the Term Bonds of such issue; and (ii) Any balance then remaining, other than money retained under the first clause of this paragraph (c), shall be applied to the retirement of such Term Bonds as the Issuer in its sole discretion shall determine, but only, in the case of the redemption of Term Bonds of any issue, in such amounts and on such terms as may be provided in the resolution authorizing the issuance of the Bonds of such issue. (d) In lieu of purchasing or redeeming Term Bonds prior to maturity under paragraphs (a) through (c) hereof, the Issuer may elect to retain the funds deposited into the Bond Amortization Account, or any portion thereof, until the stated maturity date of such Term Bonds, and invest such funds in. Federal Securities maturing not later than the stated maturity date of such Term Bonds. Such election may be made, as to all or a part of the Term Bonds, either prior to the delivery of such Term Bonds, in which case such election shall be binding on the Issuer, or may be made from time to time at the option of the Issuer, in which case such election shall not be binding until made prior to the purchase or redemption of Term Bonds pursuant to paragraphs (a) through (c) hereof; provided, however, that if an election is made to, retain the funds in the Bond Amortization Account until the stated maturity dates of such Term Bonds, such ONE JUL 71982 '6DUK 50 ?AsE245 r JUL 7 1982 5. 00 50 PAg246- Term s. Term Bonds may nevertheless be subject to redemption prior to maturity at the option of the Issuer on such terms and conditions as shall be fixed by resolution of the Issuer at or prior to the delivery of the Term Bonds, and that no election shall be made which, in the opinion of bond counsel to the Issuer, would cause the Bonds to the "arbitrage bonds" within the meaning of the Internal Revenue Code. The funds and principal of and interest on investments in the Bond Amortization Account shall be applied exclusively for payment of Term Bonds of each respective series, or maturity within a series, for which such funds and investments were depo- sited into the Bond Amortization Account, by purchase, redemption or payment at maturity, as applicable, and shall not be available for payment or purchase or redemption of Term Bonds of any other series, or any other maturity within the series, or for transfer to the Sinking Fund to make up any deficiencies in required payments therein; provided, however, that the interest on such investments not necessary for the payment of the current interest requirements on the Term Bonds of each respective series, or maturity within a series, for which such investments were depo- sited into the Bond Amortization Account, may be deposited into the Sinking Fund. (e) The Issuer shall deposit into the Bond Amortization Account, Amortization Installments for the amortization of the principal of the Term Bonds, together with any deficiencies for prior required deposits, such Amortization Installments to be in such amounts and to be due in such years as shall be determined by resolution of the Board prior to the delivery of the Term Bonds. The Issuer shall pay from the Sinking Fund all expenses in connection with any such purchase or redemption. (D) Operation and Maintenance Fund. The Issuer cove- nants and agrees to establish with a depository in the State of Florida, which is a member of the Federal Deposit Insurance Corporation, and which is eligible under the laws of the State of Florida to receive county funds, a special fund to be known as the "Indian River County Water and Sewer System Operation and Maintenance Fund," which shall be used exclusively for the pur- pose of receiving funds to be transferred monthly by the Issuer from the Revenue Fund, and for paying, as they accrue, Operating Expenses pursuant to the Annual Budget. After having made the deposits to the Sinking Fund as provided in subsection (C) above, the Issuer shall transfer on or before the 15th day of each month from the Revenue Fund and deposit to the credit of the Operation -11- and Maintenance Fund a sum sufficient to pay Operating Expenses for the current month, all in accordance with the Annual Budget. Any balance remaining in the Operation and Maintenance Fund at the end of each Fiscal Year and not required to pay costs incurred during such Fiscal Year shall be deposited promptly into the Revenue Fund. (E) Renewal and Replacement Fund. The Issuer covenants and agrees to establish with a depository in the State of Florida, which is a member of the Federal Deposit Insurance Corporation, and which is eligible under the laws of the State of Florida to receive county funds, a special fund to be known as the "Indian River County Water and Sewer System Renewal and Replacement Fund," into which shall be deposited from the Revenue Fund, after having made the deposits as provided in subsections (C) and (D) above, an amount equal to 1/12 of 10% of the Gross Revenues of the System for the preceding Fiscal Year. Such fund shall be used only for the purpose of paying the cost of extensions, enlargements or additions to or the replacement of capital assets of the System, and for emergency repairs thereto. Impact Fees on deposit in the Renewal and Replacement Fund shall only be used to pay the cost of extensions, enlargements or addi- tions to the System made necessary by the inclusion of new custo- mers of the System. (F) Deficiency or Excess Funds. Subject to the provi- sions for the disposition of Gross Revenues in subsections (C), (D) and (E), which are cumulative, the Issuer shall, on or before the 15th day of each month, transfer to the Reserve Account in the Sinking Fund the balance of money remaining in the Revenue Fund until the funds and investments in the Reserve Account equal the Maximum Bond Service Requirement and thereafter whenever funds and investments in the Reserve Account equal the Maximum Bond Service Requirement, the Issuer may use the surplus funds in the Revenue Fund for the purchase or redemption of Bonds or Notes or for any other lawful purpose. (G) Trust Funds; Investments. The funds and accounts created and established by this Instrument shall constitute trust funds for the purpose provided herein for such funds. All of such funds, except as hereinafter provided, shall be continuously secured in the same manner as county deposits of funds are required to be secured by the laws of the State of Florida. The cash required to be accounted for in each of the foregoing funds and accounts may be deposited in a single bank account, and funds allocated to the various accounts established herein may be invested in a common investment pool; provided, that adequate accounting records are maintained to reflect and control the -12- JUL 71982 wK .50 ma r JUL 71982 ma 0 PArIF24.8; restricted allocation of the cash on deposit therein and such investments for the various purposes of such funds and accounts as herein provided. The designation and establishment of the various funds and accounts in and by this Instrument shall not be construed to require the establishment of any completely independent, self -balancing funds as such term'is commonly defined and used in governmental accounting, but rather is intended solely to constitute an earmarking of certain revenues for certain purposes and to establish certain priorities for application of such revenues as herein provided. The Issuer shall separately account for Impact Fees in order to insure use only for those purposes specified in subsections (C) and (E) of this section. Money on deposit to the credit of the Reserve Account shall be invested by the depository bank, upon request by the Issuer, in direct obligations of, or obligations the principal of and interest on which are guaranteed by, the United States of America and which shall be subject to redemption at face value at anytime at the option of such holder; and the money on deposit to the credit of the Revenue Fund, Sinking Fund, Operation and Maintenance Fund and Renewal and Replacement Fund may be so invested in such obligations which shall mature not later than 15 days prior to the date on which such money shall be needed for the purposes of such funds. The securities so purchased as an investment of funds shall be deemed at all times to be a part of the account from which such funds were withdrawn, and any loss resulting from such investment shall be charged to such account, and any interest accruing on such investment or any other profit realized therefrom shall be deposited to the Reserve Account until there shall be on deposit to the credit of the Reserve Account the maximum amount required by this Instrument, after which such interest or profit shall be deposited in the Revenue Fund. (H) Transfer of Fund Balances. The amounts on deposit in the Revenue Fund, Sinking Fund (including the Reserve Account therein), and Operation and Maintenance Fund, created and esta- blished by the resolutions authorizing the issuance of the Gifford Bonds, shall be transferred to the corresponding funds and account established by this Instrument. After defeasance of the lien of the holders of the Notes on the security pledged to the payment of the principal of and interest on the Notes, the amounts on deposit, if any, in the Revenue Fund, Sinking Fund (including the Reserve Account therein), and Operation and Maintenance Fund, created and established by the resolution authorizing the issuance of the Water Revenue Bonds, Series 1980 (South County Water System), shall be transferred to the corresponding funds and account established by this Instrument. -13- (I) Rates and Charges. The Issuer covenants and agrees that it will fix, establish, revise from time to time whenever necessary and maintain always, such schedule of rates, fees, ren- tals and charges for the services and facilities of the System which will produce revenues which shall be sufficient to provide 120% of the current Bond Service Requirement and 100% of all other payments required by this Instrument; and that such rates, fees, rentals or other charges will not be reduced so as to be insufficient to provide funds for such purposes. The Issuer covenants and agrees that at the same time and in like manner that the Issuer prepares its Annual Budget of Operating Expenses, the Issuer shall annually prepare an estimate of Gross Revenues for the ensuing Fiscal Year, and to the extent that Gross Revenues are insufficient to pay 120% of such Bond Service Requirement during such ensuing year, build up and maintain the required reserves for the Bonds, pay Operating Expenses and pay the current required deposit into the Renewal and Replacement Fund, the Issuer shall revise the fees and rates charged for the use of the services and facilities of the System sufficiently to provide the funds required. (J) Issuance of Other Obligations. (1) The Issuer covenants and agrees that it will not issue any other obligations payable from or secured by the Gross Revenues, or any part thereof, unless the conditions hereinafter set forth shall be met, or unless the lien of such obligations is junior and subordinate in all respects to the lien of the holders of the Bonds and the Notes. (2) The Issuer shall not issue any obligations payable on a parity from the South County Water System Revenues with the Notes. (3) The Issuer shall have the right to finance addi- tional water and/or sewer facilities and related auxiliary facilities, by the issuance of one or more additional series of Bonds to be secured by a parity lien on and ratably payable from the Gross Revenues with the Bonds, provided in each instance that: (a) The facility or facilities to be acquired or built from the proceeds of the additional parity Bonds is or are made a part of the System and its or their revenues are pledged as addi- tional security for the additional parity Bonds and the outstanding Bonds. (b) The Issuer is in compliance with all covenants and undertakings of the Issuer (i) herein contained, in connection -14- JUL 14- JUL 71982 BOOK 50' PnE 249 JUL 71982 r� BQ 50 FST ,:250 with all Bonds and Notes then outstanding and (ii) made with respect to any other bonds or other obligations of the Issuer payable from the Gross Revenues or any part thereof; and has not been in default as to any payments required to be made under this Instrument for a period of at least the next preceding 24 months, or if at such time the Bonds or Notes shall not have been outstanding for 24 months, then for the period that the Bonds or Notes shall have been outstanding. (c) The annual Net Revenues for the Fiscal Year next preceding the issuance of additional parity Bonds are certified by an independent certified public accountant not regularly employed by the Issuer, to have been equal to at least 1.25 times the average Bond Service Requirement. (d) The estimated average annual Net Revenues of the facility or facilities to be constructed and acquired with the proceeds of such additional Bonds (and any other funds pledged and set aside for such purpose), when added to the estimated future average annual Net Revenues of the then existing System, shall be at least 1.25 times the average Bond Service Require- ment for all outstanding Bonds and the additional Bonds proposed to be issued. Estimates of future revenues and Operating Expenses shall be furnished by recognized independent consulting engineers and approved by the Board and by the Chairman thereof, and shall be forecast over a period of not exceeding. 10 years from the date of the additional Bonds proposed to be issued. Provided, however, the conditions in this paragraph and in the next preceding paragraph (c) may be waived or modified by the written consent of the holders of 75% of the Bonds then outstanding. (4) The Issuer hereby covenants and agrees that in the event additional series of parity Bonds are issued, it will adjust the required deposits into and the maximum amount to be maintained in the Sinking Fund, including the Reserve Account therein, on the same basis as hereinabove prescribed, to reflect the Bond Service Requirement on the additional Bonds. (K) Disposal of Facilities. The Issuer covenants and agrees that it will maintain its corporate identity and existence and will not sell or otherwise dispose of any of the System faci- lities or any part thereof, and, except as provided for above, it will'not create or permit to be created any charge or lien on the revenues thereof ranking equal or prior to the charge or lien of the holders of the Bonds and the Notes. Notwithstanding the foregoing, the Issuer may at any time permanently abandon use of, or sell at fair market value, any of its System facilities, pro- vided that: -15- (a) It is in compliance with all covenants and under- takings in connection with all of its Bonds and Notes then out- standing, and the debt service reserve for such Bonds has been. fully established; (b) It will, in the event of sale, apply the proceeds to either (1) redemption of outstanding Bonds or Notes in accor- dance with the provisions governing repayment of Bonds or Notes in advance of maturity, or (2) replacement of the facility so disposed of by another facility, the revenues of which shall be incorporated into the System as hereinbefore provided; (c) It is certified, prior to any abandonment of use, that the facility to be abandoned is no longer economically feasible of producing Net Revenues; and (d) It is certified that the estimated Net Revenues of the remaining System facilities for the next succeeding Fiscal Year, plus the estimated Net Revenues of the facility, if any, to be added to the System, satisfy the earnings test hereinbefore provided in this subsection governing issuance of additional parity Bonds. (L) Insurance on System. The Issuer shall carry at least the following insurance coverage to the extent deemed necessary by the Issuer's Attorney: (1) Fire and extended coverage on the insurable por- tions of the System, in amounts sufficient to provide for not less than full recovery whenever a loss from perils insured against does not exceed 80`s of the full insurable value of the damaged facility; and flood damage insurance shall be carried to the full insurable value, as recommended by consulting engineers, of all property of the System which may be subject to flood damage and shall be situated in flood plain area. (2) Public liability insurance relating to the opera- tion of the System, with limits of not less than $100,000 for one person and $300,000 for more than one person involved in one accident, to protect the Issuer from claims for bodily injury and/or death, and not less than $10,000 for claims for damage to property of others which may arise from the Issuer's operation of the System. (3) If the Issuer owns or operates a vehicle in the operation of the System, vehicular public liability insurance with limits of not less than $100,000 for one person and $300,000 for more than one person involved in one accident to protect the -16- ®o 50 , PACE 251 JUL 1992 r ,JUL 7 1982 Issuer from claims for bodily injury $10,000 against claims for damage to arise from the Issuer's operation of 1 BDQKr: 50 and death, and not less than property of others which may vehicles. All such insurance shall be carried for the benefit of the holders of the Bonds and the Notes. All money received by the Issuer by reason of insurance coverage, except liability coverage, shall be deposited to the credit of the Reserve Account and are hereby pledged by the Issuer as security for the Bonds and the Notes, until and unless such proceeds are used to remedy the loss or damage for which such proceeds are received, either by repairing the property damaged or replacing the property destroyed within 90 days from the receipt of such proceeds. The lien upon such proceeds in favor of the holders of the Bonds is junior,. subordinate and inferior to the lien thereon of the holders of the Notes. (M) Maintenance of System. The Issuer will maintain the System in good condition and continuously operate the same in an efficient manner at a reasonable cost. (N) No Free Services. The Issuer will not render or cause to be rendered any free services of any nature by its System, nor will any preferential rates be established for users of the same class; and if the Issuer shall avail itself of the facilities or services provided by the System, or any part thereof, then the same rates, fees or charges applicable to other customers receiving like service under similar circumstances shall be charged to the Issuer. Such charges shall be paid as they accrue, and the Issuer shall transfer from its general funds sufficient sums to pay such charges. The revenues so received shall be deemed to be revenues derived from the operation of the System, and shall be deposited and accounted for in the same manner as other revenues derived from such operation of the System. (0) Failure of User to Pay for Services. Upon failure of any user of any product, services or facilities of the System to pay for the same within 60 days after the Issuer shall have billed such user therefor, the Issuer shall shut off the connec- tion of such user and shall not furnish him or permit him to receive from the System further service until all obligations owed by him to the Issuer on account of services, including disconnection and reconnection charges, shall have been paid in full. This covenant shall not, however, prevent the Issuer from causing any System connection to be shut off sooner. (P) Enforcement of Collections. The Issuer will dili- gently enforce and collect the rates, fees, rentals and other -17- charges for the services and facilities of the System; and will take all steps, actions and proceedings for the enforcement and collection of such rates, fees, rentals and other charges as shall become delinquent to the full extent permitted or authorized by law; and will maintain accurate records with respect thereto. All such fees, rates, rentals, charges and revenues herein pledged shall, as collected, be held in trust to be applied as provided in this Instrument and not otherwise. (Q) Compliance with Laws and Regulations. The Issuer covenants and agrees to perform and comply with, in every respect, the loan and grant agreements which it might have with the Government or with any other governmental agency, and all applicable federal and state laws and regulations. (R) Remedies. Any holder of the Bonds, the Notes or any coupons appertaining thereto, or any trustee acting for the holders of such Bonds, Notes and coupons, may either at law or in equity, by suit, action, mandamus or other proceedings in any court of competent jurisdiction, protect and enforce any and all rights, including the right to the appointment of a receiver, existing under the laws of the State of Florida, or granted and contained in this Instrument, and may enforce and compel the per- formance of all duties required by this Instrument or by any - applicable state or federal statutes to be performed by the Issuer or by any officer thereof. Nothing herein, however, shall be construed to grant to any holder of such Bonds, Notes or coupons any lien on any real property of the Issuer. (S) Records and Audits. The Issuer shall keep books and records of the Gross Revenues, which such books and records shall be kept separate and apart from all other books, records and accounts of the Issuer, and any holder of a Bond, a Note or the coupons applicable thereto shall have the right, at all reasonable times, to inspect such books and records. The Issuer will furnish on or before 90 days after the close of each Fiscal Year, to any holder of a Bond or Note who shall request the same in writing, copies of an annual audit report prepared by an independent certified public accountant or an auditing official of the State of Florida, covering for the preceding Fiscal Year, in reasonable detail, the financial con- dition and record of operation of the System. (T) Connection with System. The Issuer will, to the full extent permitted by law, require all lands, buildings, resi- -18- J U L 71982 50 PAGE'253 j U L 718 �aoK 5a Fs�E 254 dences and structures within its corporate limits which can use the facilities and services of the System to connect therewith and use the facilities and services thereof and to cease the use of all other facilities. The Issuer will not grant a franchise for.the operation of any competing water or sewer.system. (U) Government Approval of Financing. Anything herein to the contrary notwithstanding, while the Government is the holder of any of the Bonds, the Issuer will not borrow any money from any source in connection with making extensions of or impro vements to the System, other than normal maintenance of the System, or permit others to do so, without obtaining the prior written consent of the Government. •(V) Fidelity Bond. The Issuer will require each employee who may have possession of any revenues of the System to be covered by a fidelity bond written by a responsible indemnity company in an amount fully adequate to protect the Issuer from loss. (W) Reimbursement of Advances and Interest Thereon. While the Government shall be the holder of any of the Bonds, the Government shall have the right to make advances for the payment of insurance premiums and/or other advances which, in the opinion of the Government, may be required to protect the Government's security interest. In the event of any such advances, the Issuer covenants and agrees to repay the same, together with interest thereon at the same rate per annum as specified in the Bonds, upon demand made at any time after any such expenditure by the Government. Any such amount due the Government shall be secured by a pledge of and lien upon the Gross Revenues, on a parity with the lien thereon of the holders of the Bonds, and payment thereof shall take priority over any other payments from the Reserve Account for the Bonds. ARTICLE IV MISCELLANEOUS PROVISIONS 4.01 Modification or Amendment. No material modifica- tion or amendment of this Instrument may be made without the con- sent in writing of the holders of two-thirds or more in principal amount of the Bonds and Notes then outstanding; provided, however, that no modification or amendment shall permit a change in the maturity of such Bonds or Notes or a reduction in the rate of interest thereon, or in the amount of the principal obligation, or affect the unconditional promise of the Issuer to charge and collect such rates, fees, rentals and charges for the use of the -19- product, services and facilities of the System and apply the same as herein provided, or reduce the number of such Bonds and Notes the written consent of the holders of which are required by this Section for such modification or'amendment, without the consent of the holders of all such Bonds.and Notes. 4.02 Creation of Superior Liens. The Issuer covenants that it will not issue any other Bonds, certificates or obliga- tions of any kind or nature or create or cause or permit to be created any debt, lien, pledge, assignment or encumbrance or charge payable from or enjoying a lien upon the Gross Revenues ranking prior and superior to the lien created by this Instrument for the benefit of the holders of the Bonds and the Notes. 4.03 Arbitrage. No use will be made of the proceeds of the Bonds, the Notes or the Gross Revenues which will cause the Bonds or the Notes to be "arbitrage bonds" within the meaning of the Internal Revenue Code. The Issuer at all times while the Bonds, the Notes and the interest thereon are outstanding will comply with the requirements of Section 103(c) of the Internal Revenue Code and any valid and applicable rules and regulations of the Internal Revenue Service issued thereunder. 4.04 Defeasance. If, at any time, the Issuer shall have paid, or shall have made provision for payment of, the principal, interest and redemption premiums, if any, with respect to the Bonds and the Notes, then, and in that event, the pledge of and lien on the Gross Revenues in favor of the holders of the Bonds and the Notes shall be no longer in effect. For purposes of the preceding sentence, deposit by the Issuer of direct obliga- tions of, or obligations the principal of and interest on which are guaranteed by, the United States of America, none of which shall be redeemable prior to maturity at the option of the obligor (collectively, the "Government Securities"), or bank certificates of deposit fully secured as to principal and interest by Government Securities (or deposit of any other securities or investments which may be authorized by law from time to time and sufficient under such law to effect such a defeasance) in irrevocable trust with a banking institution or trust company, for the sole benefit of the holders of the Bonds and the Notes, in an aggregate prin- cipal amount which, together with interest to accrue thereon, will be sufficient to make timely payment of the principal of and redemption premiums, if any, and interest on the Bonds and the Notes in accordance with their terms, the paying agents' fees and expenses with respect thereto and any other expenses occasioned by escrow arrangements or provision for redemption, shall be con- sidered "provision for payment." Nothing herein shall be deemed to require the Issuer to call any of the outstanding Bonds or -20- JUL 20- JUL 71982 50 PALE 255 , + a J U L 71982 �n jK 50 nu 256 Notes for redemption prior to maturity pursuant to any applicable optional redemption provisions, or to impair the discretion of the Issuer in determining whether to exercise any such option for early redemption, except that if any'of the Bonds shall be held by the Government., the Bonds so held by the Government shall be called for redemption as a whole within a period not exceeding 6 months from the date of such deposit unless the Government shall agree otherwise in writing. Notwithstanding the above, any Bonds held by the Government shall be defeased only with the prior writ- ten approval of the Government. 4.05 Severability of Invalid Provisions. If any one or more of the covenants, agreements or provisions of this Instrument or of the Bonds or Notes should be held contrary to any express provision -of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separate from the remaining covenants, agreements or pro- visions of this Instrument and of the Bonds and the Notes. 4.06 Conflicts Repealed. All resolutions or parts of resolutions in conflict herewith are hereby repealed. 4.07 Effective Date. This Instrument shall take effect immediately upon its passage. The foregoing resolution was offered by Commissioner Lyons who moved its adoption. The motion was seconded by Commissioner Bird and, upon being put to a vote, the vote was as follows: Chairman Don C. Scurlock, Jr. Aye Vice -Chairman A. Grover Fletcher Nay Commissioner Patrick B. Lyons Aye Commissioner William C. Wodtke, Jr. Aye Commissioner Dick Bird Aye The Chairman thereupon declared the resolution duly passed and adopted this 7th day of July , 1982• Attest: FREDA WRIGHT, ClerNl 1w4c BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA By C DON C. SCURLOCK, JR.77 Chairman APPROVED AS TO FORM AND SUFFICANCY ,, X/ M ./ BRANDEN.tURG, County Attorney CERTIFICATE OF RECORDING OFFICER The undersigned HEREBY CERTIFIES that: 1. SHe is the duly appointed, qualified and acting rlPrk of the Board of County Commissioners (herein called the " Board "), and keeper of the records thereof, including the minutes of its proceedings; 2. The annexed copy of extracts from the minutes of the Re ular meeting of the Board helgd on the ___3t.11day of July , 19R9, is a true, correct, and compared copy of the whole of the original minutes of the meeting on file and of record insofar as the same relate to the resolution referred to in such extracts and to the other matters referred to therein; 3. The meeting was duly convened in conformity with all applicable requirements; a proper quorum was present throughout the meeting and the resolution hereinafter mentioned was duly proposed, considered, and adopted in conformity with applicable requirements; and all other requirements and proceedings incident to the proper adoption of the resolution have been duly fulfilled, carried out, and otherwise observed; and 4. SHe is duly authorized to execute this Certificate; 5. The copy of the resolution annexed hereto entitled: RESOLUTION NO. 82-61 Resolution combining all water and/or sewer systems of Indian River County, Florida, into one integrated system; pledging the gross revenues of such combined system to secure payment of the principal of and interest on all water and/or sewer revenue obligations of the County; revising certain covenants in the Resolutions authorizing the issuance of all outstanding water and/or sewer revenue obligations of the County; and providing for the rights of theholders of such obligations. is a true, correct, and compared copy of the original resolution referred to in the extracts and as finally adopted at the meeting and, to the extent required by law, as thereafter duly signed or approved by the proper officer or officers of the Board , which resolution is on file and of record. J U L 71982 8®flK 50 PAgE 25'7 . i JUL 71982 soo . 50- PAGE 258 WITNESS my hand and the seal of the Clerk , this day of T„1 v , 19$2_• Freda Wright, Clerk (SEAL) EXTRACTS FROM THE MINUTES OF A Regular MEETING OF THE Board of County Commissio„ rs OF Indian River County Florida HELD ON THE 7th DAY OF July r 19$_ The Board of County Commissioners of Indian River County, Florida Administration Building met in Regular meeting at 1840 25th Street in the City of Vero Beach Florida at 2:30 o'clock P.M. on the 7th day of .T„lv 1982 , the place, hour, and date duly established for the holding of such meeting. The Chairman called the meeting to order and on roll call the following answered present: Don C. Scurlock. Jr. • A. Grover Fletcher Dick Bird Patrick B. Lyons and the following were absent: None The Chairman declared a quorum present. J U L 7 1982 agog ..50 . FAcE 259 r -- ilk 7 1982 I BOOK . 5.O PA.., 26O A resolution entitled: 82-61 Resolution combining all water and/or sewer systems of Indian River County Florida, into one integrated system; pledging the gross revenues of such combined system to secure payment of the principal of and interest on all water and/or sewer revenue obligations of.the County; revising certain covenants in the Resolution authorizing the issuance of all outstanding water and/or sewer revenue obligations of the County; and providing for the rights of the holders of such obligations. was introduced by Attorney Gary Brandenburg • The resolution was then read in full and discussed and considered. Mr. Patrick B. Lyons then moved the adoption of the resolution as introduced and read. Mr. Dick Bird seconded the motion, and, on roll call, the following voted "Aye": Patrick B. Lyons, Dick Bird, William C. Wodtke, Jr., and Don C. Scurlock, Jr. and the following voted "Nay.": A. Grover Fletcher The Chairman thereupon declared the motion carried and the resolution adopted as introduced and read. There being no further business to come before the meeting, upon motion duly made and seconded, the meeting was adjourned. B. $2,750,700 Water and Sewer Revenue Bonds Attorney Brandenburg noted that the County Commission has previously reviewed the concept of issuing the above amount of bonds to pay for the acquisition of Treasure'Coast Utilities and Ixora Utilities, for the cost overrun on the South County water system, as well as a new well site for the South County water system, and some other items that were included in the budget originally presented. This Resolution accomplishes that. ON MOTION by Commissioner Lyons, SECONDED by Commissioner Bird, the Board by a 4 to 1 vote, Commissioner Fletcher voting in oppo- sition, adopted Resolution 82-62 authorizing the issuance of not exceeding $2,750,700 water and sewer revenue bonds, series 1982. JUL 7 1982 57 wx 50 PAGE -26i r��� 50 FA�Fzs� J U L 7 1982 N RESOLUTION NO. 82-62 RESOLUTION PROVIDING FOR THE ACQUISITION AND CONSTRUCTION OF ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO THE COMBINED WATER AND SEWER SYSTEM OF INDIAN RIVER COUNTY, FLORIDA; AUTHORIZING THE ISSUANCE BY THE COUNTY OF NOT EXCEEDING $2,750,700 WATER AND SEWER REVENUE BONDS, SERIES 1982, TO FINANCE THE COST THEREOF; PLEDGING THE GROSS REVENUES OF SUCH SYSTEM TO SECURE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS; AND PROVIDING FOR THE RIGHTS OF THE HOLDERS OF THE BONDS. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, as follows: ARTICLE I GENERAL 1.01 Definitions. When used in this Instrument, the following terms shall have the following meanings, and the terms defined in the Original Resolution shall have the meanings ascribed to them by the Original Resolution, unless the text clearly otherwise requires: "Bonds" shall mean the obligations of the Issuer auth- orized to be issued pursuant to Section 2.01 of this Instrument, and shall be deemed to include also any other obligations issued by the Issuer pursuant to the provisions of the Original Resolu- tion. "Construction Fund" shall mean the account or accounts created pursuant,to Section 3.03 of this Instrument for the pur- pose of receiving bond proceeds and other funds to pay the Cost of the Project. "Cost," when used in connection with the Project, shall mean all -expenses necessary, appurtenant or incidental to the acquisition and construction of the Project, including, without limitation, the cost of any land or interest therein or of any fixtures, equipment or personal property necessary or convenient therefor; the cost of labor and materials to complete such construction; engineering and legal expenses; fiscal expenses; expenses for estimates of costs and of revenues; expenses for -1- plans, specifications and surveys; interest during construction; reasonable reserves for debt service on the Bonds; municipal bond insurance premiums; repayment of interim financing with respect to the Project; and administrative expenses related solely to the acquisition and construction of the Project. "Instrument" shall mean this resolution and all resolu- tions amendatory hereof which may be hereafter duly adopted by the Issuer. "Issuer" shall mean Indian River County, Florida. "Original Resolution" shall mean Resolution No. 82- 61 of the Board entitled: "RESOLUTION COMBINING ALL WATER AND/OR SEWER SYSTEMS OF INDIAN RIVER COUNTY, FLORIDA, INTO ONE INTEGRATED SYSTEM; PLEDGING THE GROSS REVENUES OF SUCH COMBINED SYSTEM TO SECURE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON ALL WATER AND/OR SEWER REVENUE OBLIGATIONS OF THE COUNTY; REVISING CERTAIN COVENANTS IN THE RESOLUTIONS AUTHORIZING THE ISSUANCE OF ALL OUTSTANDING WATER AND/ OR SEWER REVENUE OBLIGATIONS OF THE COUNTY; AND PROVIDING FOR THE RIGHTS OF THE HOLDERS OF SUCH OBLIGATIONS." "Parity Obligations" shall mean the outstanding Water and Sewer Revenue Bonds, Series 1979, dated August 30, 1979, and Water and Sewer Revenue Bonds, Second Series 1979, dated May 21, 1981, of the Issuer; and Water Revenue Bonds, Series 1980 (South County Water System), authorized but unissued, of the Issuer. "Pledged Funds" shall mean the Gross Revenues. "Prior Lien Obligations" shall mean the outstanding Water Revenue Bonds, Series 1980 (South County Water System), Anticipation Notes, dated May 1, 1981, of the Issuer. "Project" shall mean the additions, extensions and improvements to the System to be acquired and constructed pur- suant to the authorization contained in this Instrument in accor- dance with certain plans and specifications now on file with the Clerk. 1.02 Authority for this Instrument. This Instrument is adopted pursuant to the provisions of Ch. 159, Fla. Stat. (1981), .1 UL 1�a2 -2-��x 50 PACE 263 JUL 71982 Mot— 50 .FAcF 264 and other applicable provisions of law, and pursuant to Subsection 3.04(J) of the Original Resolution, and is supplemen- tal to the Original Resolution. 1.03 Findings. It is hereby found and determined that: (A) The Issuer presently owns and operates a combined water and sewer system for the benefit of its inhabitants, and the Project is necessary for the continued preservation of the health, welfare, convenience and safety of the Issuer and its inhabitants. (B) The Issuer has been advised by its consulting engi- neers and it is hereby found and determined that the estimated Cost of the Project is $2,750,700 which shall be paid with the proceeds of the sale of the Bonds. (C) Subsection 3.04(J) of the Original Resolution pro- vides for the issuance of additional parity obligations under the terms, limitations and conditions provided therein. (D) The Issuer has complied with the terms, limitations and conditions contained in the Original Resolution. The Issuer is, therefore, entitled to issue the Bonds as additional parity obligations within the authorization contained in the Original Resolution. (E) The revenues to be derived annually from the rates, rentals, fees and other charges made and collected for the ser- vices and facilities of the System are expected to be sufficient to pay, as the same shall become due and payable, the principal of and interest on the Bonds and the Parity Obligations, and the Operating Expenses. Prior to the issuance of the Bonds, the Issuer shall find and determine the estimated annual Gross Revenues, Operating Expenses and principal of and interest on the Bonds. It is estimated that the period of usefulness of the System will exceed 41 years. (F) It is deemed necessary and desirable to pledge the Pledged Funds to the payment of the principal of and interest on the Bonds. No part of the Pledged Funds have been pledged or hypothecated except with respect to the Bonds, the Parity Obligations and the Prior Lien Obligations. (G) The Bonds will be on a parity and rank equally as to lien on and source and security for payment from the Pledged Funds with the Parity Obligations. The lien of the holders of the Bonds on the South County Water System Revenues will be junior, subordinate and inferior to the lien thereon of the holders of the Prior Lien Obligations. IWIM T (H) This Instrument and the Original Resolution are declared to be and shall constitute a contract between the Issuer and all of the holders of the Bonds; and the covenants and agreements herein set forth to be performed by the Issuer are and shall be for the equal benefit, protection and security of all of the legal holders of any and all of the Bonds, all of which shall be of equal rank and without preference, priority or distinction of any of the Bonds over any other, except as hereinafter provided. (I) The Issuer is not, under this Instrument, obligated to levy any ad valorem taxes on any real or personal property situated within its corporate territorial limits to pay the prin- cipal of or interest on the Bonds or to pay Operating Expenses. The Bonds shall not constitute a lien upon the System or any other property of the Issuer or situated within its corporate territorial limits. 1.04 Project Authorized. The Project is hereby authorized. ARTICLE II AUTHORIZATION, TERMS, EXECUTION AND REGISTRATION OF REVENUE BONDS 2.01 Authorization of Revenue Bonds. Subject and pursuant to the provisions of this Instrument, obligations of the Issuer to be known as "Water and Sewer Revenue Bonds, Series 1982," are hereby authorized to be issued in an aggregate prin- cipal amount not exceeding $2,750,700 for the purpose of pro- viding funds to pay the Cost of the Project. 2.02 Description of Bonds. The Bonds shall be dated as of the date of their delivery; shall bear interest at a rate or rates not exceeding the maximum rate permitted by law, payable on September 1, 1983, and annually thereafter on September.l of each year; and shall be issued as a single fully -registered Bond payable in installments in the amounts and on September 1 of the years as follows or as coupon Bonds registrable as to both prin- cipal and interest, numbered consecutively from one upward in order of maturity, in the denomination of $1,000 each (except the Bonds maturing in the year 2022 which shall be in the denomi- nation of $100 each or any multiple thereof) and maturing on September 1 in the years and amounts as follows: J U L 7 1982 -4- oK = .50 F%E 265 J U L '11982 Years Amounts Years Amounts 1985 $25,000 2004 $ 65,000 1986 27,000 2005 68,000 1987 28,000 2006 71,000 1988 30,000 2007 75,000 1989 31,000 2008 78,000 1990 32,000 2009 82,000 1991 35,000 2010 87,000 1992 35,000 2011 91,000 1993 38,000 2012 95,000 1994 40,000 2013 100,000 1995 41,000 2014 105,000 1996 44,000 2015 110,000 •1997 46,000 2016 116,000 1998 48,000 2017 122,000 1999 51,000 2018 128,000 2000 53,000 2019 134,000 2001 55,000 2020 141,000 2002 59,000 2021 148,000 2003 61,000 2022 155,700 �K 50PA,r 266 Provided, however, if the Bonds shall be issued on September 1, 1983, or thereafter, each of such installments or maturity dates shall be deferred by one year for each year or fraction of a year that the issuance of the Bonds shall be deferred beyond August 31, 1983, and all other dates herein shall be deferred correspondingly. 2.03 Places of Payment. The Bonds shall be payable as to both principal and interest at such place or places as the Issuer shall hereafter by resolution designate, in lawful money of the United States of America; and shall bear interest from the date of issue, and in the case of coupon Bonds, in accordance with and upon surrender of the appurtenant interest coupons as they severally mature, unless registered; provided, however, that Bonds held by the Government shall be payable at "Finance Office, U.S. Department of Agriculture, Farmers Home Administration, 1520 Market Street, St. Louis, Missouri 63103," or at such other places as the Government shall from time to time in writing designate to the Issuer. 2.04 Provisions for Redemption. In this section the word "Bonds" shall be deemed to include the respective installments of principal of the fully -registered single Bond corresponding to the serially maturing coupon Bonds. Bonds maturing on or before September 1, 1992, are not subject to redemption prior to their respective stated dates of maturity. Bonds which shall mature September 1, 1993,,and -5- thereafter shall, at the option of the Issuer, be redeemable in whole or in part, in inverse numerical and maturity order, on September 1, 1992, or on any interest payment date thereafter at par and accrued interest, plus the following premiums, expressed as percentages of the par value of the Bonds so redeemed, if redeemed in the following years: 5%, if redeemed on September 1, 1992, or thereafter, to and including September 1, 1994; 4%, if redeemed on September 1, 1995, or thereafter, to and including September 1, 1999; 3%, if redeemed on September 1, 2000, or thereafter, to and including September 1, 2003; 2%, if redeemed on September 1, 2004, or thereafter, to and including September 1, 2007; 1%, if redeemed on September 1, 2008, or thereafter; to and including September 1, 2011; Without premium, if redeemed September 1, 2012, or thereafter, but prior to maturity; provided, however, that at least 30 days prior to the redemption date, written notice of such redemption shall be given to the paying agents for the Bonds and to each of the registered owners at their respective addresses as they appear upon the registra- tion books of the Clerk and shall be published at least once in a financial newspaper published in the City of New York, New York. Bonds held by the Government may be redeemed by the Issuer, in whole or in part, on any interest payment date prior to maturity at the price of par and accrued interest, without premium. 2.05 Execution of Bonds. The Bonds shall be executed in the name of the Issuer with the manual or facsimile signature of the Chairman and the corporate seal of the Issuer shall be imprinted thereon, attested and countersigned with the manual or facsimile signature of the Clerk; provided, that the signature of one of such officers shall be manually executed thereon. In case any one or more of the officers who shall have signed or sealed any of the Bonds or whose facsimile signature shall appear thereon shall cease to be such officer of the Issuer before the Bonds so signed and sealed have been actually sold and delivered, such Bonds may nevertheless be sold and delivered as herein pro- vided and may be issued as if the person who signed or sealed such Bonds had not ceased to hold such office. Any Bond may be signed and sealed on behalf of the Issuer by such person who at the actual time of the execution of such Bond shall hold the J U L 7 1982 —6—�ox. 50 Psi 267: 'JUL 71992 B 50 268 proper office of the Issuer, although at the date of such Bonds such person may not have held such office or may not have been so authorized. The coupons attached to the Bonds shall be authen- ticated with the facsimile signatures of any present or future Chairman and Clerk. The Issuer may adopt and use for such pur- poses the facsimile signatures of any such persons who shall have held such offices at any time after the date of the adoption of this Instrument, notwithstanding that either or both shall have ceased to hold such office at the time the Bonds shall be actually sold and delivered. 2.06 Negotiability, Registration and Exchange. The Bonds shall be and shall have all the qualities and incidents of negotiable instruments under laws of the State of Florida, and each successive holder, in accepting any of the Bonds or the coupons appertaining thereto, shall be conclusively deemed to have agreed that the Bonds shall be and have all of the qualities and incidents of negotiable instruments. The coupon Bonds may be registered, at the option of the holder, as to both principal and interest upon the books kept for the registration and transfer of Bonds by the Clerk, as Bond Registrar, and endorsed upon the Bonds by the Bond Registrar in the space provided thereon. After such registration, no transfer of the Bonds shall be valid unless made at the office of the Bond Registrar by the registered owner or by his duly authorized agent or representative and similarly noted on the Bonds, but at the expense of the holder, the Bonds may be discharged from registra- tion by being in like manner transferred to bearer, and thereupon transferability by delivery shall be restored. At the option and expense of the holder, the Bonds may thereafter again from time to time be registered or transferred to bearer as before. The Bond Registrar shall not be required to make any such registra- tion or transfer of Bonds during 15 days next preceding an interest payment date on the Bonds, or in the case of any pro- posed redemption of Bonds, after such Bonds have been selected for redemption. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal of any Bond and the interest on any Bond shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond including the interest thereon to the extent of the sum or sums so paid. The single fully -registered Bond may be exchanged by the owner and holder thereof at any time, not more than 90 days after surrender of such Bond to the Bond Registrar, for an equal aggre- gate principal amount of coupon Bonds maturing in the years and 1WM amounts corresponding to the years and amounts of the unpaid installments of principal of the single fully -registered Bond, and in the form prescribed for coupon Bonds in Section 2.08 of this Instrument; and if all of the coupon Bonds outstanding shall be owned and held by a single bondholder, such Bonds may, in like manner, be exchanged at the expense of such bondholder, at any time, not more than 90 days after surrender of such Bonds to the Bond Registrar, for a single fully -registered Bond in principal amount equal to the aggregate principal amount of such coupon Bonds surrendered, maturing in installments in the years and amounts corresponding to the years and amounts of the maturities of such coupon Bonds so surrendered and in the form prescribed for the single fully -registered Bond in Section 2.08 of this Instrument. 2.07 Bonds Mutilated, Destroyed, Stolen or Lost. In case any Bond shall become mutilated, or be destroyed, stolen or lost, the Issuer may in its discretion issue and deliver a new Bond of like tenor as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated Bond, upon surrender and cancellation of such mutilated Bond, or in lieu of and substitution for the Bond destroyed, stolen or lost, and upon the owner furnishing the Issuer satisfactory indemnity and complying with such other reasonable regulations and conditions, as the Issuer may prescribe and paying such expenses as the Issuer may incur. All Bonds so surrendered shall be cancelled by the Clerk. If any such Bonds shall have matured or be about to mature, instead of issuing a substitute Bond, the Issuer may pay the same, upon being indemnified as aforesaid, and if such Bond be lost, stolen or destroyed, without surrender thereof. Any such duplicate Bonds issued pursuant to this section shall constitute original, additional contractual obligations on the part of the Issuer whether or not the lost, stolen or destroyed Bonds be at any time found by anyone, and such dupli- cate Bonds shall be entitled to equal and proportionate benefits and rights as to lien on and source and security for payment from the Pledged Funds to the same extent as all other Bonds issued hereunder. 2.08 Form of Bonds. The text of the Bonds shall be in substantially the following forms, with only such omissions, insertions and variations as may be necessary and/or desirable and approved by the Chairman or the Clerk prior to the issuance thereof (which necessity and/or desirability and approval shall be presumed by such officer's execution of the Bonds and the Issuer's delivery of the Bonds to the Government or other purchaser thereof): -8- JUL 71982 saflK 50 PnE 269 J U L 71992 nog 50 FAur k2 70 No. (FORM OF COUPON BOND) UNITED STATES OF AMERICA 1 STATE OF FLORIDA COUNTY OF INDIAN RIVER WATER AND SEWER REVENUE BOND, SERIES 1982 $1,000 KNOW ALL MEN BY THESE PRESENTS, that the County of Indian River, Florida, a public body created and existing under and by virtue of the laws of the State of Florida (the "Issuer"), for value received, hereby promises to pay to the bearer, or, if this Bond*be registered, to the registered holder as herein provided, on the first day of September, , from the special funds hereinafter mentioned, the principal sum of ONE THOUSAND DOLLARS and to pay interest thereon, from the date of the delivery of this Bond to the purchaser thereof, solely from such special funds, at the rate of per centum ( %) per annum, payable on September 1, 1983, and annually thereafter on the first day of September of each year upon the presentation and surrender of the annexed coupons as they severally fall due, unless registered. Both principal of and interest on this Bond are payable at I , lawful money of the United States of America. This Bond is one of an authorized issue of Bonds in the aggregate principal amount of $2,750,700 of like date, tenor and effect, except as to number, denomination and date of maturity, issued to finance the cost of acquiring and constructing additions, extensions and improvements to the combined water and sewer system of the Issuer (the "System"), under the authority of and in full compliance with the Constitution and Statutes of the State of Florida, particularly Ch. 159, Fla. Stat. (1981), and a resolution duly adopted by the Issuer on June , 1982, as supplemented by a resolution duly adopted by the Issuer on June , 1982 (collectively, the "Resolution"), and is subject to all the terms and conditions of the Resolution. This Bond and the interest thereon are payable solely from and secured by a lien upon and a pledge of the gross reve- nues to be derived from the operation of the System, in the manner described in the Resolution. It is provided in the Resolution that the Bonds of this issue will rank on a parity with the outstanding Water and Sewer Revenue Bonds, Series 1979, dated August 30, 1979, and Water and Sewer Revenue Bonds, Second Series 1979, dated May 21, 1979, of the Issuer; and the Water Revenue Bonds, Series 1980 (South County Water System) of the ME Issuer, authorized but unissued (all 3 issues of bonds collectively, the "Parity Obligations"); which have a lien of equal dignity upon such gross revenues. The lien of the holders of the Bonds of this issue on the portion of the gross revenues of the System consisting of the revenues of the South County Water System is junior, subordinate and inferior to the lien thereon of the holders of the out- standing Water Revenue Bonds, Series 1980 (South County Water System), Anticipation Notes, dated May 1, 1981 (the "Bond Anticipation Notes"), of the Issuer. However, upon the issuance of the Water Revenue Bonds, Series 1980 (South County Water System), and the retirement of the Bond Anticipation Notes, the Bonds, the Parity Obligations and the Water Revenue Bonds, Series 1980 (South County Water System), will have a first and prior lien on the gross revenues of the System. It is expressly agreed by the holder of this Bond that the full faith and credit of the Issuer are not pledged to the payment of the principal of and interest on this Bond and that -- such holder shall never have the right to require or compel the exercise of any taxing power of the Issuer to the payment of such principal and interest or the cost of maintaining, repairing and operating the System. This Bond and the obligation evidenced hereby shall not constitute a lien upon the System or any part thereof or upon any other property of the Issuer or situated within its corporate limits, but shall constitute a lien only on the gross revenues derived from the operation of the System. In and by the Resolution, the Issuer has covenanted and agreed with the holders of the Bonds of this issue that it will fix, establish, revise from time to time whenever necessary, maintain and collect always such fees, rates, rentals and other charges for the use of the product, services and facilities of the System which will always produce revenues sufficient to pay, and out of such funds pay, as the same shall become due, 120% of the current Bond Service Requirement, as defined in the Resolution, on the Bonds and the Parity Obligations and 100% of all other payments required by the Resolution; and that such rates, rentals, fees and other charges will not be reduced so as to be insufficient to provide funds for such purposes. As provided in the Resolution, this Bond and all of the Bonds then outstanding are exchangeable at the expense of the holder or registered owner hereof, at any time, not less than 90 days after surrender of this Bond and all of the Bonds then outstanding to the Clerk hereinafter mentioned, as Bond Registrar, for a single fully -registered Bond in the denomination equal to the aggregate principal amount of this Bond plus all of the Bonds then outstanding, and in the form of such single Bond as provided for in the Resolution. Nor 50 PA;- 271 -10- JUL 71982 'JUL 7 1982 tlK 50 F6c 2 l 2 The Bonds of this issue maturing on or before September 1, 1992, are not subject to redemption prior to their respective stated dates of maturity. Bonds which shall mature September 1, 1993, and thereafter shall, at the option of the Issuer, be redeemable in whole or in part, in inverse numerical order and maturity order, on September 1, 1992, or on any interest payment date thereafter at par and accrued interest, plus the following premiums, expressed as percentages of the par value of the Bonds so redeemed, if redeemed in the following years: 5%, if redeemed on September 1, 1992, or thereafter, to and including September 1, 1994; 4%, if redeemed on September 1, 1995, or thereafter, to and including September 1, 1999; 3%, if redeemed on September 1, 2000, or thereafter, to and including September 1, 2003; 2%, if redeemed on September 1, 2004, or thereafter, to and including September 1, 2007; 1%, if redeemed on September 1, 2008, or thereafter, to and including September 1, 2011; Without premium, if redeemed September 1, 2012, or thereafter, but prior to maturity; provided, however, that notice of such redemption shall be given in the manner required by the Resolution. Bonds of this issue held by the United States of America, U. S. Department of Agriculture, Farmers Home Administration, may be redeemed at the option of the Issuer, in whole or in part, prior to their stated dates of maturity, on any interest payment date, at the price of par plus accrued interest, without premium. It is hereby certified and recited that all acts, con- ditions, and things required to exist, to happen and to be per- formed precedent to and in the issuance of this Bond, exist, have happened and have been performed, in regular and due form and time as required by the laws and Constitution of the State of Florida applicable thereto; and that the issuance of this Bond, and of the issue of Bonds of which this Bond is one, does not violate any constitutional or statutory limitations or provisions. This Bond and the coupons appertaining thereto are and have all the qualities and incidents of negotiable instruments under the laws of the State of Florida. -11- This Bond may be registered as to both principal and interest in accordance with the provisions endorsed hereon. IN WITNESS WHEREOF, the County of Indian River, Florida, has issued this Bond and has caused the same to be signed by its Chairman and attested and countersigned by its Clerk, either manually or with their facsimile signatures, and its corporate seal or a facsimile thereof to be affixed, impressed, imprinted or engraved hereon, and the interest coupons hereto attached to be executed with the facsimile signatures of such officers, all as of COUNTY OF INDIAN RIVER, FLORIDA By (SEAL) ATTESTED AND COUNTERSIGNED: Clerk Chairman (FORM OF COUPON) No. On the 1st day of September, , unless the Bond to which this coupon is attached is callable and shall have been previously duly called for prior redemption and payment thereof duly made or provided for, the County of Indian River, Florida, will pay to bearer at 1 , from the special funds described in the Bond to which this coupon is attached, the amount shown hereon in lawful money of the United States of America, upon presentation and surrender of this coupon, being interest then due on its Water and Sewer Revenue Bond, Series 1982, dated 19—, No. JUL 71982 -12- x 0 %E:273. JUL 71982 (SEAL) ATTESTED AND COUNTERSIGNED: Clerk 500 50 'FA"jr 274 COUNTY OF INDIAN RIVER, FLORIDA By Chairman (PROVISIONS FOR REGISTRATION ON COUPON BONDS) PROVISIONS FOR REGISTRATION This Bond may be registered as to both principal and interest on books kept for such purpose by such Clerk, as Bond Registrar, such registration being noted hereon by the Bond Registrar in the registration blank below, the coupons being surrendered and the interest being payable only to the registered holder, remitted by mail, after which registration no'transfer shall be valid unless made by the registered holder or his legal representative and similarly noted by the Bond Registrar on the books and in the registration blank below, but it may be discharged from registration by being transferred to bearer, after which it shall be transferable by delivery, or it may again be registered as before. Upon reconversion of this Bond into a coupon Bond, coupons representing the interest to accrue upon the Bond to date of maturity shall be attached hereto. Date of Name and Address of Signature of Registration Registered Owner Bond Registrar -13- (FORM OF SINGLE BOND) UNITED STATES OF AMERICA STATE OF FLORIDA COUNTY OF INDIAN RIVER WATER AND SEWER REVENUE BOND, SERIES 1982 KNOW ALL MEN BY THESE PRESENTS, that the County of Indian River, Florida, a public body created and existing under and by virtue of the laws of the State of Florida (the "Issuer"), for value received, hereby promises to pay to , the principal sum of $2,750,700 on the first day of September in the years and installments as follows: Years Amounts Years Amounts 1985 $25,000 2004 $ 65,000 1986 27,000 2005 68,000 1987 28,000 2006 71,000 1988 30,000 2007 75,000 1989 31,000 2008 78,000 1990 32,000 2009 82,000 1991 35,000 2010 87,000 1992 35,000 2011 91,000 1993 38,000 2012 95,000 1994 40,000 2013 100,000 1995 41,000 2014 105,000 1996 44,000 2015 110,000 1997 46,000 2016 116,000 1998 48,000 2017 122,000 1999 51,000 2018 128,000 2000 53,000 2019 134,000 2001 55,000 2020 141,000 2002 59,000 2021 148,000 2003 61,000 2022 155,700 and to pay, solely from such special funds, interest on the balance of such principal sum from time to time remaining unpaid, from the date of the delivery of this Bond to the purchaser thereof, at the rate of per centum ( %) per annum, payable on September 1, 1983, and annually thereafter on the first day of September of each year. Both principal of and interest on this Bond are payable at , , , in lawful money of the United States of America. Payments of principal and interest, including prepayments of installments of principal as hereinafter provided, shall be noted by the owner and holder hereof on the Payment Record made a part of this Bond, and writ- ten notice of the making of such notation shall be promptly sent JUL 71982 -14- BOCK 50,PASE275 r � JUL 71992 sgor 50 PA, -.276 to the Issuer. Upon final payment of principal and interest, this Bond shall be surrendered to the Issuer. This Bond represents an authorized issue of Bonds in the aggregate principal amount of $2,750,700 issued to finance the cost of acquiring and constructing additions, extensions and improvements to the combined water and sewer system of the Issuer (the "System"), under the authority of and in full compliance with the Constitution and Statutes of the State of Florida, par- ticularly Ch. 159, Fla. Stat. (1981), and a resolution duly adopted by the Issuer on June , 1982, as supplemented by a resolution duly adopted by the Issuer on June , 1982 (collectively, the "Resolution"), and is subject to all the terms and conditions of the Resolution. This Bond and the interest thereon are payable solely from and 'secured by a lien upon and a pledge of the gross reve- nues to be derived from the operation of the System, in the manner described in the Resolution. It is provided in the Resolution that this Bond will rank on a parity with the outstanding Water and Sewer Revenue Bonds, Series 1979, dated August 30, 1979, and Water and Sewer Revenue Bonds, Second Series 1979, dated May'21, 1979, of the Issuer; and the Water Revenue Bonds, Series 1980 (South County Water System), of the Issuer, authorized but unissued (all 3 issues of bonds collectively, the "Parity Obligations"); which have a lien of equal dignity upon such gross revenues. The lien of the holder of this Bond on the portion of the gross revenues of the System consisting of the revenues of the South County Water System is junior, subordinate and inferior to the lien thereon of the holders of the outstanding Water Revenue Bonds, Series 1980 (South County Water System), Anticipation Notes,, dated May 1, 1981 (the "Bond Anticipation Notes"), of the Issuer. However, upon the issuance of the Water Revenue Bonds, Series 1980 (South County Water System), and the retirement of the Bond Anticipation Notes, this Bond, the Parity Obligations and the Water Revenue Bonds, Series 1980 (South County Water System), will have a first and prior lien on the gross revenues of the System. It is expressly agreed by the holder of this Bond that the full faith and credit of the Issuer are not pledged to the payment of the principal of and interest on this Bond and that such holder shall never have the right to require or compel the exercise of any taxing power of the Issuer to the payment of such principal and interest or the cost of maintaining, repairing and operating the System. This Bond and the obligation evidenced hereby shall not constitute a lien upon the System or any part thereof or upon any other property of the Issuer or situated -15- y within its corporate limits, but shall constitute a lien only on the gross revenues derived from the operation of the System. In and by the Resolution, the Issuer has covenanted and agreed with the holder of this Bond that it will fix, establish, revise from time to time whenever necessary, maintain and collect always such fees, rates, rentals and other charges for the use of the product, services and facilities of the System which will always produce revenues sufficient to pay, and out of such funds pay, as the same shall become due, 120% of the current Bond Service Requirement, as defined in the Resolution, on this Bond and the Parity Obligations and 100% of all other payments required by the Resolution; and that such rates, rentals, fees and other charges will not be reduced so as to be insufficient to provide funds for such purposes. As provided in the Resolution, this Bond is exchangeable at the expense of the owner and holder hereof at any time, not more than 90 days after surrender of this Bond to the Clerk hereinafter mentioned, as Bond Registrar, for an equal aggregate principal amount of coupon Bonds, payable to bearer, registrable as to both principal and interest, in the denomination of $1,000 each or as otherwise provided in the Resolution, and maturing in the amounts and on September 1 of the years corresponding to the years and amounts of the unpaid installments of principal of this Bond, and in the form of such coupon Bonds as provided for in the Resolution. The installments of principal payable upon this Bond on or before September 1, 1992, are not subject to prepayment prior to their respective dates of payment. The installments of prin- cipal payable on this Bond which shall be payable September 1, 1993, and thereafter may, at the option of the Issuer, be prepaid in whole or in part, but only in multiples of $1,000 or $100 (in the case of the installment payable in the year 2022), in inverse chronological order of the installments, on September 1, 1992, or on any interest payment date thereafter at par and accrued interest, plus the following premiums, expressed as percentages of the principal amount of the installments so prepaid, if pre- paid in the following years: 5%, if paid on September 1, 1992, or thereafter, to and including September 1, 1994; 4%, if paid on September 1, 1995, or thereafter, to and including September 1, 1999; 3%, if paid on September 1, 2000, or thereafter, to and including September 1, 2003; JUL 71982 —16— o 50,eAsr- 277 'JUL '71982 2%, 1%, 690K 54 278 if paid on September 1, 2004, or thereafter, to and including September 1, 2007; if paid on September 1, 2008, or thereafter, to and including September 1, 2.011; Without premium, if paid September 1, 2012, or thereafter, but prior to maturity; provided, however, that notice of such prepayment shall be given in the manner required by the Resolution. If this Bond is held by the Government, installments of principal payable thereon may be prepaid at the option of the Issuer, in whole or in part, prior to their payment dates, on any interest payment date, at the price•of par and accrued interest, without premium. It is hereby certified and recited that all acts, con- ditions, and things required to exist, to happen and to be per- formed precedent to and in the issuance of this Bond, exist, have happened and have been performed, in regular and due form and time as required by the laws and Constitution of the State of Florida applicable thereto; and that the issuance of this Bond does not violate any constitutional or statutory limitations or provisions. This Bond is and has all the qualities and incidents of a negotiable instrument under the laws of the State of Florida. IN WITNESS WHEREOF, the County of Indian River, Florida, has issued this Bond and has caused the same to be signed by its Chairman and attested and countersigned by its Clerk, and its corporate seal to be impressed hereon, all as of (SEAL) ATTESTED AND COUNTERSIGNED: Clerk COUNTY OF INDIAN RIVER, FLORIDA By -17- Chairman _ 'l _ (FORM OF VALIDATION CERTIFICATE ON ALL BONDS) VALIDATION CERTIFICATE This Bond was validated by judgment of the Circuit Court for Indian River County, Florida, rendered on , 1932. Chairman (FORM OF ASSIGNMENT) ASSIGNMENT For valuable consideration, the UNITED STATES OF AMERICA, acting through the U.S. DEPARTMENT OF AGRICULTURE, FARMERS HOME ADMINISTRATION, does hereby assign, transfer and deliver to all of its right, title and interest in and to this Bond and all rights belonging or appertaining to the assignor under and by virtue of this Bond. U.S. DEPARTMENT OF AGRICULTURE, FARMERS HOME ADMINISTRATION By Title: Witnesses: -18- BOOK 5� WE,279 JUL 71982 JUL 7 1982po�. 501% 280 (FORM OF PAYMENT RECORD) PAYMENT RECORD Principal Due Date Principal Balance Interest Date Signature of (Sept. 1) Payment Due Payment Paid Bondholder 1983 -0- 1984 -0- 1985 $ 25,000 _ 1986 27,000 1987 28,000 1988 30,000 1989 31,000 1990 •32,000 1991 35,000 1992 35,000 1993 38,000 1994 40,000 1995 41,000 1996 44,000 1997 46,000 1998 48,000 1999 51,000 2000 53,000 2001 55,000 2002 59,000 2003 61,000 2004 65,000 2005 68,000 2006 71,000 2007 75,000 2008 78,000 2009 82,000 2010 87,000 2011 91,000 2012 95,000 2013 100,000 2014 105,000 2015 110,000 2016 116,000 2017 122,000 2018 128,000 2019 134,000 2020 141,000 2021 148,000 2022 155,700 mm*L PRINCIPAL INSTALLMENTS ON WHICH PAYMENTS HAVE BEEN MADE PRIOR TO DUE DATE Principal Principal Due Principal Balance Date Signature of Date Amount Prepaid Due Paid Bondholder JUL 71982 wK 50 PACE 2 -20- JUL 7 1982 ARTICLE III COVENANTS, SPECIAL FUNDS AND APPLICATION THEREOF '50 PA 282 3.01 Bonds Not to Be Indebtedness of Issuer. Neither the Bonds nor the coupons attached thereto shall be or constitute general obligations or indebtedness of the Issuer as "bonds" within the meaning of Art. VII, §12, Fla. Const. (1968), but shall be payable solely from and secured by a lien upon and pledge of the Pledged Funds as provided in the Original Resolution. No owner or holder of any Bond or coupon apper- taining thereto shall ever have the right to compel the exercise of any ad valorem taxing power to pay such Bond or coupon or Operating Expenses, or be entitled to payment of such Bond or coupon from any money of the Issuer except from the Pledged Funds in the manner provided herein and in the Original Resolution. 3.02 Application of Provisions of the Original Resolution. The Bonds shall for all purposes be considered to be additional parity obligations issued under the authority of the Original Resolution, and shall be entitled to all the protection and security provided therein for the Parity Obligations, and shall be in all respects entitled to the same security, rights and privileges enjoyed by the Parity Obligations. The covenants and pledges contained in the Original Resolution shall be applicable to the Bonds in like manner as applicable to the Parity Obligations. The Reserve Account established in the Original Resolu- tion shall be applicable pro rata to the Bonds in the same manner as applicable to the Parity Obligations, and payments shall be made therein as.required by the Original Resolution. 3.03 Application of Bond Proceeds. The Issuer hereby agrees to create and establish with a depository in the State of Florida, which is a member of the Federal Deposit Insurance Corporation, and which is eligible under the laws of the State of Florida to receive county funds, a special fund to be known as the "Construction Fund," into which shall be deposited the proceeds from the sale of the Bonds (except such portion thereof as shall be necessary to pay interest on the Bonds during the acquisition and construction of the Project, which shall be deposited in the Sinking Fund), grant funds and the additional funds, if any, required to assure payment in full of the Cost of the Project. Withdrawals from the Construction Fund shall be made only for such purposes as shall have been previously specified in the Project Cost estimates and as shall be approved by the Issuer's consulting engineers for the Project. There is hereby created within the Construction Fund a special account known as the "Notes Payment Account." If bond -21- anticipation notes are issued by the Issuer to provide interim financing for all or part of the Cost of the Project, and as long as such notes are outstanding and unpaid or until adequate provi- sion has been made for payment of the same, disposition of money on deposit in the Construction Fund and Notes Payment Account may be controlled by the provisions of any resolution authorizing the issuance of such notes and any escrow deposit agreement executed between the Issuer and the escrow holder for the protection of the holders of such notes. The Issuer's share of any liquidated damages or other money paid by defaulting contractors or their sureties, and all proceeds of insurance compensating for damages to the Project during the period of acquisition and construction, shall be depo- sited in the Construction Fund to assure completion of the Project. Money in the Construction Fund shall be secured by the depository bank in accordance with U.S. Treasury Department Circular 176 and in the manner prescribed by the laws of the State of Florida relating to the securing of public funds. When the money on deposit in the Construction Fund exceed the esti- mated disbursements on account of the Project for the next 90 days, the Issuer may direct the depository bank to invest such excess funds in direct obligations of, or obligations the prin- cipal of and interest on which are guaranteed by, the United States of America, which shall be subject to redemption at any time at face value pursuant to the request of the holder thereof. The earnings from any such investment shall be deposited in the Construction Fund. When the construction of the Project has been completed and all construction costs have been paid in full, all funds remaining in the Construction Fund, except grant funds, shall be deposited in the Sinking Fund, and the Construction Fund shall be closed. All money deposited in the Construction Fund shall be and constitute a trust fund created for the purposes stated, and there is hereby created a lien upon such fund in favor of the holders of the Bonds until the money thereof shall have been applied in accordance with this Instrument. ARTICLE IV MISCELLANEOUS PROVISIONS 4.01 Modification or Amendment. No material modifica- tion or amendment of this Instrument may be made without the con- sent in writing of the holders of two-thirds or more in principal JUL 71982 —22— ;,P.� 50 p�cF283 JUL 71982 s.AQK o P*A F284 amount of the Bonds then outstanding; provided, however, that no modification or amendment shall permit a change in the maturity of such Bonds or a reduction in the rate of interest thereon, or in the amount of the principal obligation, or affect the uncon- ditional promise of the Issuer to charge and collect such rates, fees, rentals and charges for the use of the product, services and facilities of the System and apply the same as herein provided, or reduce the number of such Bonds the written consent of the holders of which are required by this Section for such modification or amendment, without the consent of the holders of all such Bonds. 4.02 Creation of Superior Liens. The Issuer covenants that it will not issue any other Bonds, certificates or obliga- tions of -any kind or nature or create or cause or permit to be created any debt, lien, pledge, assignment or encumbrance or charge payable from or enjoying a lien upon any of the Pledged Funds ranking prior and superior to the lien created by this Instrument for the benefit of the holders of the Bonds. 4.03 Arbitrage. No use will be made of the proceeds of the Bonds or the Pledged Funds which will cause the Bonds to be "arbitrage bonds" within the meaning of the Internal Revenue Code. The Issuer at all times while the Bonds and the interest thereon are outstanding will comply with the requirements of Section 103(c) of the Internal Revenue Code and any valid and applicable rules and regulations of the Internal Revenue Service issued thereunder. 4.04 Defeasance. If, at any time, the Issuer shall have paid, or shall have made provision for payment of, the principal, interest and redemption premiums, if any, with respect to the Bonds, then, and in that event, the pledge of and lien on the Pledged Funds in favor of the holders of the Bonds shall be no longer in effect. For purposes of the preceding sentence, deposit by the Issuer of direct obligations of, or obligations the principal of and interest on which are guaranteed by, the United States of America, none of which shall be redeemable prior to maturity at the option of the obligor (collectively, the "Federal Securities"), or bank certificates of deposit fully secured as to principal and interest by Federal Securities (or deposit of any other securities or investments which may be authorized by law from time to time and sufficient under such law to effect such a defeasance) in irrevocable trust with a banking institution or trust company, for the sole benefit of the holders of the Bonds, in an aggregate principal amount which, together with interest to accrue thereon, will be sufficient to make timely payment of the principal of and redemption premiums, if any, and interest on the Bonds in accordance with their terms, the paying agents' fees and expenses with respect thereto and any -23- other expenses occasioned by escrow arrangements or provision for redemption, shall be considered "provision for payment." Nothing herein shall be deemed to require the Issuer to call any of the outstanding Bonds for redemption prior to maturity pursuant to any applicable optional redemption provisions, or to impair the discretion of the Issuer in determining whether to exercise any such option for early redemption, except that if any of the Bonds shall be held by the Government, the Bonds so held by the Government shall be called for redemption as a whole within a period not exceeding 6 months from the date of such deposit unless the Government shall agree otherwise in writing. Notwith- standing the above, any Bonds held by the Government shall be defeased only with the prior written approval of the Government. 4.05 Severability of Invalid Provisions, If any one or more of the covenants, agreements or provisions of this Instrument or of the Bonds should be held contrary to any express W provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall he deemed separate from the remaining covenants, agreements or pro- visions of this Instrument and of the Bonds. 4.06 Validation Authorized. The Issuer's Attorney is hereby authorized and directed to institute appropriate pro- ceedings in the Circuit Court for Indian River County, Florida, for the validation of the Bonds. 4.07 Conflicts Repealed. All resolutions or parts of resolutions in conflict herewith are hereby repealed. 4.08 Effective Date. This Instrument shall take effect immediately upon its passage. The foregoing resolution was offered by Commissioner Lyonswho moved its adoption. The motion was seconded by Commissioner Bird and, upon being pat to a vote, the vote was as follows: Chairman Don C. Scurlock, Jr. Aye Vice -Chairman A. Grover Fletcher Nay Commissioner Patrick B. Lyons Aye Commissioner William C. Wodtke, Jr. Aye Commissioner Dick Bird Aye The Chairman thereupon passed and adoptedt is 7th Attest: FREDA WRIGHT, Clok APPROVED TO JFORM AND LEGAL S ICI CY JUL 7 1982 Y BRANDENBURG unty Attorney -24- declared the resolution duly day of July , 1982• BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA ByG DON C. SCURLOCK, JR. Chairman t BOOK 0 PAGE'285 50 , PA6£ 28p6 ,AUL '71982 CERTIFICATE OF RECORDING OFFICER The undersigned HEREBY CERTIFIES that: 1. S He is the duly appointed, qualified and acting clerk of the ward of County Commissioners (herein called the Board " ) , and keeper of the records thereof, including the minutes of its proceedings; 2. The annexed copy of extracts from the minutes of the Regular meeting of the Board itheld on the 7th day of July , 19 82, is a true, correct, and compared copy of the whole of the original minutes of the meeting on file and of record insofar as the same relate to the resolution referred to in such *extracts and to the other matters referred to therein; 3. The meeting was duly convened in conformity with all applicable requirements; a proper quorum was present throughout the meeting and the resolution hereinafter mentioned was duly proposed, considered, and adopted in conformity with applicable _ requirements; and all other requirements and proceedings incident to the proper adoption of the resolution have been duly fulfilled, carried out, and otherwise observed; and 4. S He is duly authorized to execute this Certificate; 5. The copy of the resolution annexed hereto entitled: RESOLUTION NO. 82-62 RESOLUTION PROVIDING FOR THE ACQUISITION AND CONSTRUCTION OF ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO THE COMBINED WATER AND SEWER SYSTEM OF INDIAN RIVER COUNTY, FLORIDA: AUTHORIZING THE ISSUANCE BY THE COUNTY OF NOT EXCEEDING $2,750,700 WATER AND SEWER REVENUE BONDS, SERIES 1982, TO FINANCE THE COST THEREOF: PLEDGING THE GROSS REVENUES OF SUCH SYSTEM TO SECURE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS: AND PROVIDING FOR THE RIGHTS OF THE HOLDERS OF THE BONDS. is a true, referred to and, to the approved by correct, and compared copy of the original resolution in the extracts and as finally adopted at the meeting extent required by law, as thereafter duly signed or the proper officer or officers of the Board which resolution is on file and of record. a WITNESS my hand and the seal of the Clerk this 9th day of July ► 19 82 - (SEAL) - Freda Wright, Clerk J U L '71982 ggoK0 PAGE T.;(� :1 a J U L .7 1982 EXTRACTS FROM THE MINUTES OF A Regular MEETING OF THE Board of County Commissioners OF Indian River County, Florida HELD ON THE 7th DAY OF July 19 82 The Board of County Commissioners Of — Indian River Countv. Flo Administration Building met in Regular meeting at 1840 25th Street in the City of Vero Beach , Florida , at `2:30 o'clock P.M. on the 7th day of July , 1982, the place, hour, and date duly.established for the holding of such meeting. The Chairman called the meeting to order and on roll call the following answered present: A. Grover Fletcher , Dick Bird , Don C. Scurlock, Jr. , Patrick B Lyons , William C. Worltka Jr. r and the following were absent: None , The Chairman declared a quorum present. A resolution entitled: RESOLUTION NO. 82-62 RESOLUTION PROVIDING FOR THE ACQUISITION AND CONSTRUCTION OF ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO THE COMBINED WATER AND SEWER SYSTEM OF INDIAN RIVER COUNTY, FLORIDA: AUTHORIZING THE ISSUANCE BY THE COUNTY OF NOT EXCEEDING $2,750,700 WATER AND SEWER REVENUE BONDS, SERIES 1982, TO FINANCE THE COST THEREOF: PLEDGING THE GROSS REVENUES OF SUCH SYSTEM TO SECURE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS: AND PROVIDING FOR THE RIGHTS OF THE HOLDERS OF THE BONDS, was introduced by Mt. Attorney Gary Brandenburg The resolution was then read in full and discussed and considered. Mr. Lyons then moved the adoption of the resolution as introduced and read. Mr. Bird seconded the motion, and, on roll call, the following voted 11Aye": C Scurlock, Jr., William C. Wodtke, Jr., Patrick E Lyons and Dick Bird and the following voted "Nay": A. Grover Fletcher The _ Charman -thereupon declared the motion carried and the resolution adopted as introduced and read. There being no further business to come before the meeting, upon motion duly made and seconded, the meeting was adjourned. J U L 71982 na _50 fA 89-., J U L 7 1982 50 PA.G 290 C. $7,000,000 Water and Sewer Revenue Bonds Attorney Brandenburg informed the Board of two changes in the proposed Resolution. On Page 2 of the Resolution in the definition of cost following the phrase "after date of delivery of bonds," he would like to add the parenthetical (but not exceeding one year after completion of construction of -the Project), and also on Page 13 to add the same parenthetical in Section 3.03A after the clause that reads "after the date of delivery thereof." He recommended approval of the Resolution as drafted with these two changes. ON MOTION by Commissioner Bird, SECONDED by Commissioner Wodtke, the Board by a 4 to 1 vote, Commissioner Fletcher voting in oppo- sition, adopted Resolution 82-63, authorizing the issuance of not exceeding $7,000,000 water and sewer revenue bonds, Series 1982A, with changes as noted by the County Attorney. RESOLUTION NO. 82-63 RESOLUTION PROVIDING FOR THE ACQUISITION AND CONSTRUCTION OF ADDITIONS, EXTENSIONS AND IMPROVEMENTS TO THE COMBINED WATER AND SEWER SYSTEM OF INDIAN RIVER COUNTY, FLORIDA; AUTHORIZING THE ISSUANCE BY THE COUNTY OF NOT EXCEEDING $7,000,000 WATER AND SEWER REVENUE BONDS, SERIES 1982A, TO FINANCE THE COST THEREOF; PLEDGING THE GROSS REVENUES OF SUCH SYSTEM TO SECURE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS; AND PROVIDING FOR THE RIGHTS OF THE HOLDERS OF THE BONDS. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, as follows: ARTICLE I GENERAL 1.01 Definitions. When used in this Instrument, the following terms shall have the following meanings, and the terms defined in the Original Resolution shall have the meanings ascribed to them by the Original Resolution, unless the text clearly otherwise requires: "Authorized Investments" shall mean direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America; obligations of the several agencies of the United States of America which are unconditionally guaranteed by the United States of America; time deposits in banks or trust companies represented by certificates of deposit fully secured as required by the laws of Florida; or any other investments permitted by §125.31, Fla. Stat. (1981). "Bonds" shall mean the obligations of the Issuer auth- orized to be issued pursuant to Section 2.01 of this Instrument, and shall be deemed to include also any other obligations issued by the Issuer pursuant to the provisions of the Original Resolu- tion. "Construction Fund" shall mean the account or accounts created pursuant to Section 3.03 of this Instrument for the pur- -1- JUL 71982 BOOK FAcr.2911 A -t 71982 ooK 50 eA r 202 pose of receiving bond proceeds and other funds to pay the Cost of the Project. "Cost," when used in connection with the Project, shall mean all expenses necessary, appurtenant or incidental to the acquisition and construction of the Project,'including, without limitation, the cost of any land or interest therein or of any fixtures, equipment or personal property necessary or convenient therefor; the cost of labor and materials to complete such construction; engineering and legal expenses; fiscal expenses; expenses for estimates of costs and of revenues; expenses for plans, specifications and surveys; capitalized interest up to 30 months after the date of delivery of the Bonds (but not exceeding 1 year after completion of construction of the Project); reaso- nable reserves for debt service on the Bonds; municipal bond insurance premiums; repayment of interim financing with respect to the Project; and administrative expenses related solely to the acquisition and construction of the Project. "Instrument" shall mean this resolution and all resolu- tions amendatory hereof which may be hereafter duly adopted by the Issuer. "Issuer" shall mean Indian River County, Florida. "Original Resolution" shall mean Resolution No. 82- 61 of the Board entitled: "RESOLUTION COMBINING ALL WATER AND/OR SEWER SYSTEMS OF INDIAN RIVER COUNTY, FLORIDA, INTO ONE INTEGRATED SYSTEM; PLEDGING THE GROSS REVENUES OF SUCH COMBINED SYSTEM TO SECURE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON ALL WATER AND/OR SEWER REVENUE OBLIGATIONS OF THE COUNTY; REVISING CERTAIN COVENANTS IN THE RESOLUTIONS AUTHORIZING THE ISSUANCE OF ALL OUTSTANDING WATER AND/ OR SEWER REVENUE OBLIGATIONS OF THE COUNTY; AND PROVIDING FOR THE RIGHTS OF THE HOLDERS OF SUCH OBLIGATIONS." "Parity Obligations" shall mean the outstanding Water and Sewer Revenue Bonds, Series 1979, dated August 30, 1979, and Water and Sewer Revenue Bonds, Second Series 1979, dated May 21, 1981, of the Issuer; and Water Revenue Bonds, Series 1980 (South County Water System), authorized but unissued, of the Issuer. -2- "Pledged Funds" shall mean the Gross Revenues. "Prior Lien Obligations" shall mean the outstanding Water Revenue Bonds, Series 1980 (South County Water System), Anticipation Notes, dated May 1, 1981, of the Issuer. "Project" shall mean the additions, extensions and improvements to the System to be acquired and constructed pur- suant to the authorization contained in this Instrument in accor- dance with certain plans and specifications now on file with the Clerk. 1.02 Authority for this Instrument. This Instrument is adopted pursuant to the provisions of Ch. 159, Fla. Stat. (1981), and other applicable provisions of law, and pursuant to Subsection 3.04(J) of the Original Resolution, and is supplemen- tal to the Original Resolution. 1.03 Findings. It is hereby found and determined that: (A) The Issuer presently owns and operates a combined water and sewer system for the benefit of its inhabitants, and the Project is necessary for the continued preservation of the health, welfare, convenience and safety of the Issuer and its inhabitants. (B) The Issuer has been advised by its consulting engi- neers and it is hereby found and determined that the estimated Cost of the Project is $7,000,000 which shall be paid with the proceeds of the sale of the Bonds. (C) Subsection 3.04(J) of the Original Resolution pro- vides for the issuance of additional parity obligations under the terms, limitations and conditions provided therein. (D) The Issuer has complied with the terms, limitations and conditions contained in the Original Resolution. The Issuer is, therefore, entitled to issue the Bonds as additional parity obligations within the authorization contained in the Original Resolution. (E) The revenues to be derived annually from the rates, rentals, fees and other charges made and collected for the ser- vices and facilities of the System are expected to be sufficient to pay, as the same shall become due and payable, the principal of and interest on the Bonds and the Parity Obligations, and the Operating Expenses. Prior to the issuance of the Bonds, the Issuer shall find and determine the estimated annual Gross Revenues, Cperating Expenses and principal of and interest on the Bonds. It is estimated that the period of usefulness of the System will exceed 41 years. -3- J U L 7 1982 Boa 50' PAGE.293- ' JUL 71982 50 204 (F) It is deemed necessary and desirable to pledge the Pledged Funds to the payment of the principal of and interest on the Bonds. No part of the Pledged Funds have been pledged or hypothecated except with respect to the Bonds, the Parity Obligations and the Prior Lien Obligations. (G) The Bonds will be on a parity and rank equally as to lien on and source and security for payment from the Pledged Funds with the Parity Obligations. The lien of the holders of _ the Bonds on the South County Water System Revenues will be junior, subordinate and inferior to the lien thereon of the holders of the Prior Lien Obligations. (H) This Instrument and the Original Resolution are declared to be and shall constitute a contract between the Issuer and all of the holders of the Bonds; and the covenants and agreements herein set forth to be performed by the Issuer are and shall be for the equal benefit, protection and security of all of the legal holders of any and all of the Bonds, all of which shall be of equal rank and without preference, priority or distinction of any of the Bonds over any other, except as hereinafter provided. (I) The Issuer is not, under this Instrument, obligated to levy any ad valorem taxes on any real or personal property situated within its corporate territorial limits to pay the prin- cipal of or interest on the Bonds or to pay Operating Expenses. The Bonds shall not constitute a lien upon the System or any other property of the Issuer or situated within its corporate territorial limits. 1.04 Project Authorized. The Project is hereby authorized. ARTICLE II AUTHORIZATION, TERMS, EXECUTION AND REGISTRATION OF REVENUE BONDS 2.01 Authorization of Revenue Bonds. Subject and pursuant to the provisions of this Instrument, obligations of the Issuer to be known as "Water and Sewer Revenue Bonds, Series 1982A," are hereby authorized to be issued in an aggregate prin- cipal amount not exceeding $7,000,000 for the purpose of pro- viding funds to pay the Cost of the Project. 2.02 Description of Bonds. The Bonds shall be numbered consecutively from one upward; shall be in the denomination of -4- $5,000 each or integral multiples thereof; and shall be dated, shall bear interest at such rate or rates not exceeding the maxi- mum rate fixed by applicable law, payable semiannually, and shall mature on such date and in such years, not exceeding 40 years from their date, and amounts as shall be fixed by subsequent resolution of the Issuer adopted prior to the delivery of the Bonds. The Bonds shall be issued in coupon form; shall be payable to bearer unless registered as hereinafter provided; shall be payable with respect to both principal and interest at a bank or banks to be subsequently determined by the Issuer prior to the delivery of the Bonds; shall be payable in lawful money of the United States of America; and shall bear interest from their date, payable in accordance with and upon surrender of the appur- tenant interest coupons as they severally mature. 2.03 Provisions for Redemption. The Bonds may be sub- ject to redemption prior to their respective stated dates of maturity, upon the terms and conditions and in the manner as may be specified by subsequent resolution of the Issuer adopted prior to their delivery. Notice of such redemption shall be published at least 30 days prior to the redemption date in a financial journal published in the Borough of Manhattan, City and State of New York; shall be filed with the paying agent; and shall be mailed, postage prepaid, to all registered owners of Bonds to be redeemed at their addresses as they appear on the registration books. If the names and addresses of the holders of all the Bonds have been furnished to the Issuer, the mailing of such notice to the holders shall be sufficient. Interest shall cease to accrue on any Bond duly called for prior redemption on the redemption date, if payment thereof has been duly provided. 2.04 Execution of Bonds. The Bonds shall be executed in the name of the Issuer with the manual or facsimile signature of the Chairman and the corporate seal of the Issuer shall be imprinted thereon, attested and countersigned with the manual or facsimile signature of the Clerk; provided, that the signature of one of such officers shall be manually executed thereon. In case any one or more of the officers who shall have signed or sealed any of the Bonds or whose facsimile signature shall appear thereon shall cease to be such officer of the Issuer before the Bonds so signed and sealed have been actually sold and delivered, such Bonds may nevertheless be sold and delivered as herein pro- vided and may be issued as if the person who signed or sealed -5- JUL 7 1982. 50 PAGE 295 J U L 71982 such Bonds had not ceased to hold such office. Any Bond may be signed and sealed on behalf of the Issuer by such person who at the actual time of the execution of such Bond shall hold the proper office of the Issuer, although at the date of such Bonds such person may not have held such office or may not have been so authorized. The coupons attached to the Bonds shall be authen- ticated with the facsimile signatures of any present or future Chairman and Clerk. The Issuer may adopt and use for such pur- poses the facsimile signatures of any such persons who shall have held such offices at any time after the date of the adoption of this Instrument, notwithstanding that either or both shall have ceased to hold such office at the time the Bonds shall be actually sold and delivered. •2.05 Negotiability and Registration. The Bonds shall be and shall have all the qualities and incidents of negotiable instruments under laws of the State of Florida, and each suc- cessive holder, in accepting any of the Bonds or the coupons appertaining thereto, shall be conclusively deemed to have agreed that the Bonds shall be and have all of the qualities and inci- dents of negotiable instruments. The Bonds may be registered at the option of the holder as to principal only or as to both principal and interest at the office of the paying agent as Registrar, or such other Registrar as may be herefter duly appointed, such registration to be noted on the back of the Bonds in the space provided therefor. After such registration as to principal only or as to both principal and interest, no transfer of the Bonds shall be valid unless made at such office by written assignment of the registered owner or by his duly authorized attorney in a form satisfactory to -.the Registrar, and similarly noted on the Bonds, but the Bonds may be discharged from registration by being in like manner transferred to bearer and thereupon transferability by delivery shall be restored. At the option of the holder, the Bonds may thereafter again from time to time be registered or transferred to bearer as before. Registration as to principal only shall not affect the negotiability of the coupons which shall continue to pass by delivery. The Issuer may make a reaso- nable charge for every such transfer sufficient to reimburse it for any expenses incurred by it; provided, however, that no charge shall be made by the Issuer for the first transfer of any Bonds from bearer to the registered owner and for the first transfer from the registered owner to bearer. 2.06 Bonds Mutilated, Destroyed, Stolen or Lost. In case any Bond shall become mutilated, or be destroyed, stolen or lost, the Issuer may in its discretion issue and deliver a new MM Bond with all unmatured coupons of like tenor as the Bond and attached coupons so mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated Bond, upon surrender and cancellation of such mutilated Bond, and attached coupons, if any, or in lieu of and substitution for the Bond and attached coupons, if any, destroyed, stolen or lost, and upon the holder furnishing the Issuer satisfactory indemnity and complying with such other reasonable regulations and conditions as the Issuer may prescribe and paying such expenses as the Issuer may incur. All Bonds and coupons so surrendered shall be cancelled by the Clerk. If any such Bonds or coupons shall have matured or be about to mature, instead of issuing a substitute Bond or coupon, the Issuer may pay the same, upon being indemnified as aforesaid, and if such Bond or coupon be lost, stolen or destroyed, without surrender thereof. Any such duplicate Bonds and coupons issued pursuant to this section shall constitute original, additional contractual obligations on the part of the Issuer whether or not the lost, stolen or destroyed Bonds or coupons be at any time found by anyone, and such duplicate Bonds and coupons shall be entitled to equal and proportionate benefits and rights as to lien on and source and security for payment from the Pledged Funds to the same extent as all other Bonds and coupons issued hereunder. 2.07 Form of Bonds. The text of the Bonds and coupons shall be in substantially the following forms, with only such omissions, insertions and variations as may be necessary and/or desirable and approved by the Chairman or the Clerk prior to the issuance thereof (which necessity and/or desirability and ap- proval shall be presumed by such officer's execution of the Bonds and the Issuer's delivery of the Bonds to the purchaser thereof): No. (FORM OF BOND) UNITED STATES OF AMERICA STATE OF FLORIDA COUNTY OF INDIAN RIVER WATER AND SEWER REVENUE BOND, SERIES 1982A KNOW ALL MEN BY THESE PRESENTS, that the Indian River, Florida, a public body created and and by virtue of the laws of the State of Florida for value received, hereby promises to pay to the this Bond be registered, to the registered holder provided, on the first day of 0 , funds hereinafter mentioned, the principal sum of -7- J U L 71982 $5,000 County of existing under (the "Issuer"), bearer, or, if as herein from the special pox 50 PP�� 2-97 JUL 71982 FIVE THOUSAND DOLLARS and to pay interest thereon, from the date of the delivery of this Bond to the purchaser thereof, solely from such special funds, at the rate of per centum ( W) per annum, payable on 1, 198, and semiannually thereafter on the first day of and of each year upon the presentation and surrender of the annexed coupons as they severally fall due, unless registered. Both principal of and interest on this Bond are payable at IT , , in lawful money of the United States of America. This Bond is one of an authorized issue of Bonds in the aggregate principal amount of $7,000,000 of like date, tenor and effect, except as to number, interest rate and date of maturity, issued to finance the cost of acquiring and constructing additions, extensions and improvements to the combined water and sewer system of the Issuer (the "System"), under the authority of and in full compliance with the Constitution and Statutes of the State of Florida, particularly Ch. 159, Fla. Stat. (1981), and a resolution duly adopted by the Issuer on June , 1982, as supplemented by a resolution duly adopted by the Issuer on June 1982 (collectively, the "Resolution"), and is subject to all the terms and conditions of the Resolution. This Bond and the interest thereon are payable solely from and secured by a lien upon and a pledge of the gross reve- nues to be derived from the operation of the System, in the manner described in the Resolution. It is provided in the Resolution that the Bonds of this issue will rank on a parity with the outstanding Water and Sewer Revenue Bonds, Series 1979, dated August 30, 1979, and Water and Sewer Revenue Bonds, Second Series 1979, dated May 21, 1979, of the Issuer; and the Water Revenue Bonds, Series 1980 (South County Water System) of the Issuer, authorized but unissued (all 3 issues of bonds collectively, the "Parity Obligations"); which have a lien of equal dignity upon such gross revenues. The lien of the holders of the Bonds of this issue on the portion of the gross revenues of the System consisting of the revenues of the South County Water System is junior, subordinate and inferior to the lien thereon of the holders of the out- standing Water Revenue Bonds, Series 1980 (South County Water System), Anticipation Notes, dated May 1, 1981 (the "Bond Anticipation Notes"), of the Issuer. However, upon the issuance of the Water Revenue Bonds, Series 1980 (South County Water - System), and the retirement of the Bond Anticipation Notes, the - -8- Bonds, the Parity Obligations and the Water Revenue Bonds, Series 1980 (South County Water System), will have a first and prior lien on the gross revenues of the System. It is expressly agreed by the holder of this Bond that the full faith and credit of the Issuer are not pledged to the payment of the principal of and interest on this Bond and that such holder shall never have the right to require or compel the exercise of any taxing power of the Issuer to the payment of such principal and interest or the cost of maintaining, repairing and operating the System. This Bond and the obligation evidenced hereby shall not constitute a lien upon the System or any part thereof or upon any other property of the Issuer or situated within its corporate limits, but shall constitute a lien only on the gross revenues derived from the operation of the System. In and by the Resolution, the Issuer has covenanted and agreed with the holders of the Bonds of this issue that it will fix, establish, revise from time to time whenever necessary, maintain and collect always such fees, rates, rentals and other charges for the use of the product, services and facilities of the System which will always produce revenues sufficient to pay, and out of such funds pay, as the same shall become due, 120% of the current Bond Service Requirement, as defined in the Resolution, on the Bonds and the Parity Obligations and 100% of all other payments required by the Resolution; and that such rates, rentals, fees and other charges will not be reduced so as to be insufficient to provide funds for such purposes. (Insert redemption provisions) Notice of such redemption shall be given in the manner required by the Resolution. It is hereby certified and recited that all acts, con- ditions, and things required to exist, to happen and to be per- formed precedent to and in the issuance of this Bond, exist, have happened and have been performed, in regular and due form and time as required by the laws and Constitution of the State of Florida applicable thereto; and that the issuance of this Bond, and of the issue of Bonds of which this Bond is one, does not violate any constitutional or statutory limitations or provisions. This Bond and the coupons appertaining thereto are and have all the qualities and incidents of negotiable instruments under the laws of the State of Florida. J U L 71992 -9- slav 50 •,PACE 299 J U L 71992 �K 50 This Bond may be registered as to principal only or both principal and interest in accordance with the provisions endorsed hereon. IN WITNESS WHEREOF, the County of Indian River, Florida, has issued this Bond and has caused the same to be signed by its Chairman and attested and countersigned by its Clerk, either manually or with their facsimile signatures, and its corporate seal or a facsimile thereof to be affixed, impressed, imprinted or engraved hereon, and the interest coupons hereto attached to be executed with the facsimile signatures of such officers, all as of (SEAL) ATTESTED AND COUNTERSIGNED: Clerk COUNTY OF INDIAN RIVER, FLORIDA By Chairman VALIDATION CERTIFICATE This Bond is one of a series of bonds which were vali- dated by judgment of the Circuit Court for Indian River County, Florida, rendered on , 1982. Chairman PROVISIONS FOR REGISTRATION This Bond may be registered in the name of the holder on the books to be kept by the paying agent, as Registrar, or such other Registrar as may be hereafter duly appointed, as to prin- cipal only, such registration being noted hereon by such - Registrar in the registration blank below, after which no transfer shall be valid unless made on the books by the registered holder or his attorney duly authorized and similarly noted in the - -10- registration blank below, but it may be discharged from registra- tion by being transferred to bearer, after which it shall be transferable by delivery, but it may be again registered as before. The registration of this Bond as to principal only shall not restrain the negotiability of the coupons by delivery, but the coupons may be surrendered with the interest made payable only to the registered holder, in which event the Registrar shall note in the registration blank below that this Bond is registered as to interest as well as principal; and thereafter the interest will be remitted by mail to the registered holder. This Bond, when converted into a Bond registered as to both principal and interest, may be reconverted into a coupon Bond and again con- verted into a Bond registered as to both principal and interest, as hereinbefore provided. Upon reconversion of this Bond, when registered as to both principal and interest, into a coupon Bond, coupons representing the interest to accrue upon this Bond to the date of maturity shall be attached hereto by the Registrar, and the Registrar shall note in the registration blank below whether this Bond is registered as to principal only or payable to bearer. The Issuer may make a reasonable charge for every such transfer sufficient to reimburse it for any expenses incurred by it; provided, however, that no charge shall be made by the Issuer for the first transfer of any Bond from bearer to the registered owner and for the first transfer from the registered owner to bearer. DATE OF IN WHOSE NAME MANNER OF SIGNATURE OF REGISTRATION REGISTERED REGISTRATION REGISTRAR (FORM OF COUPON) No. On the first day of unless the Bond to which this coupon is attached is callable and shall have been previously duly called for prior redemption and payment thereof duly made or provided for, the County of Indian River, Florida, -11- JUL 7 1982 Boa 50 PAcE 01 JUL 71982 soot 50 'P.Aur3102 will pay to bearer at , from the special funds desriged in the Bond to which this coupon is attached, the amount shown hereon in lawful money of the United States of America, upon presentation and surrender of this coupon, being interest then due on its Water and Sewer Revenue Bond, Series 1982A, dated 19 , No. (SEAL) ATTESTED AND COUNTERSIGNED: Clerk COUNTY OF INDIAN RIVER, FLORIDA By -12- Chairman ARTICLE III COVENANTS, SPECIAL FUNDS AND APPLICATION THEREOF 3.01 Bonds Not to Be Indebtedness of Issuer. Neither the Bonds nor the coupons attached thereto shall be or constitute general obligations or indebtedness of the Issuer as "bonds" within the meaning of Art. VII, §12, Fla. Const. (1968), but shall be payable solely from and secured by a lien upon and pledge of the Pledged Funds as provided in the Original Resolution. No owner or holder of any Bond or coupon apper- taining thereto shall ever have the right to compel the exercise of any ad valorem taxing power to pay such Bond or coupon or Operating Expenses, or be entitled to payment of such Bond or coupon from any money of the Issuer except from the Pledged Funds in the manner provided herein and in the Original Resolution. 3.02 Application of Provisions of the Original Resolution. The Bonds shall for all purposes be considered to be additional parity obligations issued under the authority of the Original Resolution, and shall be entitled to all the protection and security provided therein for the Parity Obligations, and shall be in all respects entitled to the same security, rights and privileges enjoyed by the Parity Obligations. The covenants and pledges contained in the Original Resolution shall be applicable to the Bonds in like manner as applicable to the Parity Obligations. The Reserve Account established in the Original Resolu- tion shall be applicable pro rata to the Bonds in the same manner as applicable to the Parity Obligations, and payments shall be made therein as required by the Original Resolution. 3.03 Application of Bond Proceeds. Money received from the sale of the Bonds shall be applied by the Issuer as follows: A. All accrued interest and, at the option of the Issuer, interest to accrue on the Bonds for a period of up to 30 months after the date of delivery thereof (but not exceeding 1 year after completion of construction of the Project), shall be deposited in the Sinking Fund. B. The Issuer may, at its option, deposit into the Reserve Account, an amount equal to the Maximum Bond Service Requirement. C. The Issuer shall next use the money to pay costs incurred in connection with the issuance of the Bonds. J U L 7 1992 -13- �qoK 50 FA;E305 J U L 7 1982 50 : FFA 304 D. There is hereby established the Series 1982A Construction Fund (hereinafter called "Construction Fund"), into which shall be paid the balance of the money remaining after making all the deposits and payments provided for in paragraphs A, B and C above. The Construction Fund shall be kept separate and apart from all other funds and accounts of the Issuer, and the money on deposit therein shall be withdrawn, used and applied by the Issuer solely to the payment of the cost of the Project and pur- poses incidental thereto, as hereinabove described and set forth. If for any reason such proceeds or any part thereof are not necessary for or are not applied to the payment of such cost, then the .unapplied proceeds shall be deposited by the Issuer into the Sinking Fund. All such proceeds shall be and constitute trust funds for such purposes, and there is hereby created a lien upon such money until so applied in favor of the holders of the Bonds. Any funds on deposit in the Construction Fund which, in the opinion of the Issuer, are not immediately necessary for expenditure, as hereinabove provided, may be invested in Authorized Investments maturing not later than the date on which such funds will be needed for payment of the costs of the Project. All income derived therefrom shall be deposited in the Construction Fund prior to completion of the Project, and thereafter shall be deposited in the Sinking Fund. ARTICLE IV MISCELLANEOUS PROVISIONS 4.01 Modification or Amendment. No material modifica- tion or amendment of this Instrument may be made without the con- sent in writing of the holders of two-thirds or more in principal amount of the Bonds then outstanding; provided, however, that no modification or amendment shall permit a change in the maturity of such Bonds or a reduction in the rate of interest thereon, or in the amount of the principal obligation, or affect the uncon- ditional promise of the Issuer to charge and collect such rates, fees, rentals and charges for the use of the product, services and facilities of the System and apply the same as herein provided, or reduce the number of such Bonds the written consent of the holders of which are required by this Section for such modification or amendment, without the consent of the holders of all such Bonds. 4.02 Creation of Superior Liens. The Issuer covenants that it will not issue any other Bonds, certificates or obliga- -14- :- tions of any kind or nature or create or cause or permit to be created any debt, lien, pledge, assignment or encumbrance or charge payable from or enjoying a lien upon any of the Pledged Funds ranking prior and superior to the lien created by this Instrument for the benefit of the holders of the Bonds. 4.03 Arbitrage. No use will be made of the proceeds of the Bonds or the Pledged Funds which will cause the Bonds to be "arbitrage bonds" within the meaning of the Internal Revenue Code. The Issuer at all times while the Bonds and the interest thereon are outstanding will comply with the requirements of Section 103(c) of the Internal Revenue Code and any valid and applicable rules and regulations of the Internal Revenue Service issued thereunder. 4.04 Defeasance. If, at any time, the Issuer shall have paid, or shall have made provision for payment of, the principal, interest and redemption premiums, if any, with respect to the Bonds, then, and in that event, the pledge of and lien on the Pledged Funds in favor of the holders of the Bonds shall be no longer in effect. For purposes of the preceding sentence, deposit by the Issuer of direct obligations of, or obligations the principal of and interest on which are guaranteed by, the United States of America, none of which shall be redeemable prior to maturity at the option of the obligor (collectively, the "Federal Securities"), or bank certificates of deposit fully secured as to principal and interest by Federal Securities (or deposit of any other securities or investments which may be authorized by law from time to time and sufficient under such law to effect such a defeasance) in irrevocable trust with a banking institution or trust company, for the sole benefit of the holders of the Bonds, in an aggregate principal amount which, together with interest to accrue thereon, will be sufficient to make timely payment of the principal of and redemption premiums, if any, and interest on the Bonds in accordance with their terms, the paying agents' fees and expenses with respect thereto and any other expenses occasioned by escrow arrangements or provision for redemption, shall be considered "provision for payment." Nothing herein shall be deemed to require the.Issuer to call any of the outstanding Bonds for redemption prior to maturity pursuant to any applicable optional redemption provisions, or to impair the discretion of the Issuer in determining whether to exercise any such option for early redemption. -15- JUL 7 19 2 M -OK . 50 PACE3 i r; JUL °71992 �oK -50 PAG -r.306 4.05 Severability of Invalid Provisions. If any one or more of the covenants, agreements or provisions of this Instrument or of the Bonds should be held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separate from the remaining covenants, agreements or pro- visions of this Instrument and of the Bonds. 4.06 Validation Authorized. The Issuer`s Attorney is hereby authorized and directed to institute appropriate pro- ceedings in the Circuit Court for Indian River County, Florida, for the validation of the Bonds. 4.07 Conflicts Repealed. All resolutions or parts of resolutions in conflict herewith are hereby repealed. 4.08 Effective Date. This Instrument shall take effect immediately upon its passage. Bird The foregoing resolution was offered by Commissioner who moved its adoption. The motion was seconded by Commissioner Wodtke and, upon being put to a vote, the vote was as follows: Chairman Don C. Scurlock, Jr. Aye Vice -Chairman A. Grover Fletcher Nay Commissioner Patrick B. Lyons Aye Commissioner William C. Wodtke, Jr. Aye Commissioner Dick Bird Aye The Chairman thereupon declared the resolution duly passed and adopted this 7th day of July , 1982. Attest: _ FREDA WRIGHT, C1 _k -16- BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA By C DON C. SCURLOCK, JR. Chairman APPROVED TO FORM AND AND LEG SUFFI ENCY By rnM BRANDENBURGt Attorney _ I S �_ _ CERTIFICATE OF RECORDING OFFICER The undersigned HEREBY CERTIFIES that: 1. S He is the duly appointed, qualified and acting Clerk of the Board of County Commissioners (herein called the " Board "); and keeper of the records thereof, including the minutes of its proceedings; 2. The annexed copy of extracts from the minutes of the Regular meeting of the Board , held on the 7th day of July , 19 821 --is a true, correct, and compared copy of the whole of the original minutes of the meeting on file and of record insofar as the same relate to the resolution referred to in such extracts and to the other matters referred to therein; 3. The meeting was duly convened in conformity with all applicable requirements; a proper quorum was present throughout the meeting and the resolution hereinafter mentioned was duly proposed, considered, and adopted in conformity with applicable _ requirements; and all other requirements and proceedings incident to the proper adoption of the resolution have been duly fulfilled, carried out, and otherwise observed; and 4. SHe is duly authorized to execute this Certificate; 5. The copy of the resolution annexed hereto entitled: RESOLUTION No. 82-63 Resolution providing for the acquisition and construction of additions, extensions and improvements to the combined water and sewer system of Indian River County, Florida; authorizing the issuance by the county of not exceeding $7,000,000 water and sewer revenue bonds, Series 1982A, to finance the cost thereof; pledging the gross revenues of such system to secure payment of the principal and interest on the bonds; and pro- viding for the rights of the holders of the bonds. is a true, correct, -.and compared copy of the original resolution referred to in the extracts and as finally adopted at the meeting and, to the extent required by law, as thereafter duly signed or approved by the proper officer or officers of the Board , which resolution is on file and of record. J U L 7 1982 mcK .. 50 f$GE 30 7 ,, JUL 71982 WITNESS my hand and the seal of the this day of July , 19 82. (SEAL) 600K Clerk Freda Wright, Clerk 50' PA, -r-308 P EXTRACTS FROM THE MINUTES OF A Regular MEETING OF THE Board of County Commissioners OF Indian River County, Florida HELD ON THE 7th DAY OF July , 19 82 The Board of County Commissioners Of Indian River County, Florida Administration Building met in Regular meeting at 1840 25th Street in the City of Vero Beach , Florida , at 2:30 o'clock P M. on the 7th day of July , 19 82, the place, hour, and date duly established for the holding of such meeting. The Chairman called the meeting to order and on roll call the following answered present: Don C. Scurlock, Jr. , A. Grover Fletcher , Dick Bird , Patrick B. Lyons , and the following were absent: none , I The Chairman William C. Wodtke. Jr. declared a quorum present. JUL 71982 QooK 50.:P�'9 s AUL 7 1982 Boon 50 m, 310 A resolution entitled: No. 82-63 Resolution providing for the acquisition and construction of additions, extensions and improvements to the combined water and sewer system of Indian River County, -Florida; authorizing the issuance by the county of not exceeding'$7',000,000 water and sewer revenue bonds, Series 1982A, to finance the cost thereof; pledging the gross revenues of such system to secure payment of the principal of and interest on the bonds; and pro- viding for the rights of the holders of the bonds. was introduced by Kxx Attorney Gary Brandenburg The resolution was then read in full and discussed and considered. Mr. Dick Bird then moved the adoption of the resolution as introduced and read. Mr. William Wodtke seconded the motion, and, on roll call, the following voted "Aye". —Patrick B. Lyons, Dick Bird, William C. Wodtke, Jr., and Don C. —_Scurlock and the following voted "Nay": A_ nrcw r Fletcher The Chairman -thereupon declared the motion carried and the resolution adopted as introduced and read. There being no further business to come before the meeting, upon motion duly made and seconded, the meeting was adjourned. Attorney Brandenburg requested that the Board authorize their Attorney, special bond counsel, the investment bankers, and all appropriate staff, to take the steps necessary for filing of the validation suit as soon as - possible so as to be able to put Bond Anticipation Notes or some other type financing in place prior to September, which will allow us to free up some $480,000 which has been carried on the books since the beginning of the South County project to cover cost overruns, thereby making these funds available for use in next year's budget. He noted that it is important to move ahead as quickly as possible. ON MOTION by Commissioner Lyons, SECONDED by Commissioner Bird, the Board by a 4 to 1 vote, Commissioner Fletcher voting in oppo- sition, authorized the County staff, investment bankers, special Bond Counsel and the County Attorney, to proceed with the steps necessary for the financing and validation of these bonds'as soon as possible. TREASURE COVE SUBDIVISION SEWER FRANCHISE TERMINATION The Board reviewed the following memo: J U L 71982 61 BON 50 PACE 311 J U L 7 1982 K 50 Ft�31� TO: The Honorable Board of DATE: June 15, 1982 FILE: County -Commissioners SUBJECT: Treasure Cove Subdivision THRU: Dr. C.B. Hardin, Jr. Sewer Franchise Termination Acting Administrator FROM: George Liner, REFERENCES: Utilities Director DESCRIPTION & CONDITIONS Treasure Cove Subdivision is located on south AlA east of the highway and south of Vero Beach city limits. As of 11/25/81, the wastewater collection system serves S4 units. The wastewater collection system for this subdivision is currently connected to the City of Vero Beach wastewater system and has been since approximately 12/12/78. On June 1, 197.9, a letter was addressed to the County Attorney from Robert Jackson, an attorney representing the Treasure Cove sewer franchise at that time, asking for advice on how to -handle the franchise termination. A memo was also addressed to the Secretary to the Board from the County Attorney to place the franchise revocation on the agenda. This is the last bit of information that I have been able to uncover regarding this matter. For some reason, this matter never made it to the agenda. As a result, Resolution #75-21,, Treasure Cove Subdivision Sewer Franchise has still not been liquidated. ALTERNATIVES & ANALYSIS There are no alternatives to this matter, because the franchise is no longer in effect. RECOMMENDATION & FUNDING I recommend the Board of County Commissioners vote to formally terminate Resolution #75-21, Treasure Cove Subdivision Sewer Franchise. J ON 1MOTION by Commissioner Lyons, SECONDED by Commissioner Bird, the Board by a 4 to 1 vote, Commissioner Fletcher voting in oppo- sition, formally terminated Treasure Cove Subdivision Sewer Franchise, Resolution 75-21. SCHEDULE PUBLIC HEARING RE TREASURE COAST UTILITY RATES The Board reviewed the following memo: TO: he Honorable Board of DATE: June 25, 1982 FILE: County Commissioners THRU: C.B. Hardin, Jr., Ph.D. Acting Administrator FROM: 's zp,�. - George Liner, Utilities Manaqer DESCRIPTION & CONDITIONS SUBJECT: Treasure Coast Utility Rates Public Hearing REFERENCES: Prior to purchase of Treasure Coast Utilities, the Utilities Division was advised by Administration and by the Attorney that we must continue to charge customers at their franchise rates until two events are accomplished: 1) A public hearing is held to advise vested customers there will be a change of rates. 2) The county achieves some milestone whereby improved service is accomplished. Existing rates as compared with county rates (for an average customer using 5,000 gallons per month) are as follows: Treasure Coast County Ordinance 80-13 Water $ 6.25 $11.60 Sewer 8.00 (2 baths) 11.03 Total $14.25 $22.63 Note the difference for this average water and sewer user will have a.q.f3 $increase with county rates while the water only customers have an *1,3: ,increase in the rates. This knowledge is to be tempered with the judgement that the franchise had not given good service and good water until the county took over the system on April 27, 1982. From that date, we have given better and safe water, responded and solved low pressure complaints, kept the lift stations in operation and responded to DER's requirements for chlorine treatment of the sewage. We have intentions to provide improved water as soon as new water mains can be "tested out" which interconnect with either Vista system • or Mid -Florida. This will constitute the milestone improvement for an effective date for standard county rates. Before a system is considered tested out, the mains must be pressure tested to assure us there are no leaks, then they must be disinfected -over a suitable period of -time with a chlorine concentration; then the mains are flushed out with potable water; then a sufficient number of bacteria samples must produce negative results from two consecutive days;.then the DER approves the mains for public use. Only then can we accept the mains to put them into service. J U L 7 1982 63 BDIIK 50 4AE313 JUL 71982 ow 59 PAcr.314 As a result of the directions given to the Utilities Division, a public hearing is called for the residents served by the Treasure Coast Utilities system to inform them of pending change of the rate schedule. ALTERNATIVES & ANALYSIS There is a concept that all new customers of the county system are covered by ordinance 80-13 and therefore should be billed at county rates from the time we begin servicing them. This has advantages from three viewpoints: 1) It conforms to FmHA and bond requirements 2) It does not require special handling of. the billing system to accomodate a specific group of customers t 3) Utilities cash-flow will conform closer to anticipated levels This concept has been side-tracked through alternative precedent that until the county offers improved service, then the continued franchise rate shall apply. Although we plan to provide improved water to the residents of Treasure Coast at the earliest possible time, the main testing procedure has taken more time than originally expected. When we are able to provide wafter from either Vista Royale or purchased water from City of Vero Beach, either source will be lime softened water from a reliable source. This then should be the date from which we should be able to charge normal county rates. There is no alternative to the standard county rate schedule since we do not have "preferred customers". RECOMMENDATIONS & FUNDING Following the public hearing, it is recommended that the Utilities Division be authorized to charge the normal county rate schedule specified in Ordinance 80-13; the effective date of this authorization shall be the first billing following the milestone date of improved water service. ON MOTION by Commissioner Bird, SECONDED by Commissioner Lyons, the Board unanimously - agreed to schedule a public hearing on Treasure Coast Utility rates for August 4, 1982. SCHEDULE PUBLIC HEARING ON PETITION PAVING PROGRAMS Public Works Director Jim Davis informed the Board that he wished the Board to conduct a public hearing for an assessment roll for three petition paving programs. ON MOTION by Commissioner Fletcher, SECONDED by Commissioner Lyons, the Board unanimously authorized advertising a public hearing on assessment rolls for the follow- ing petition paving programs on August 4, 1982: 44th Ave. between Walker Ave. & 22nd St. 13th Place east of 27th Ave. 36th Ave. between 12th & 14th Sts. PUBLIC HEARING — ORDINANCE PROHIBITING SALE OR USE OF TEFLON COATED AMMUNITION The hour of 3:00 o'clock P.M. having passed, the Deputy Clerk read the following Notice with Proof of Publication attached, to -wit: V R E O BEACH PRESS -JOURNAL Published Weekly Vero Beach, Indian River County, Florida COUNTY OF INDIAN RIVER: STATE OF FLORIDA Before the undersigned authority personally appeared J. J. Schumann, Jr. who on oath says that he is Business Manager of the Vero Beach Press -Journal, a weekly newspaper published at Vero Beach in Indian River County, Florida; that the attached copy of advertisement, being . n . I in the matter of in the lished in said newspaper in the issues of Court, was pub- Affiant further says that the said Vero Beach Press -Journal is a newspaper published at Vero Beach, in said Indian River County, and that the said newspaper has heretofore been continuously published in said Indian River County, Florida, weekly and has been entered as second class mail matter at the post office in Vero Beach, in said Indian River County, Florida for a period of one year next preceeding the first publication of the attached copy of adver- tisement; and affiant further says that he has neither paid nor promised any person, firm or corporation any discount, rebate, commission or refund for the purpose of securing this adver- tisement for publication in the said newspaper. Sworn to and subscribed before (SEAL) JUL 7 1982 this17 day ofA.D. 9�� IirZZ V J9 ness Manager) (Clerk of the Circuit Court"4dian River County, Florida) 65 NOTICE OF INTENT TO CONSIDER COUNTY ORDINANCE Please be advised that the Board of County Commissioners of Indian River County will hold a Public Hearing on July 7, 1982, at 3:00 P.M. in the County Commission Chambers, County Administration Building, 1840 25th Street, Vero Beach, Florida, to consider adoption of the following Ordinance which prohibits the sale, barter, lending, giving, delivery, purchase or possession of teflon coated handgun or firearm ammunition: AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, PROHIBITING THE SALE, BARTER, LENDING, GIVING, DELIVERY, PURCHASE OR POSSESSION OF TEFLON COATED HANDGUN OR FIREARM AMMUNITION, PROVIDING FOR PROHIBITION, EXEMPTION, PUNISHMENT, SEVERABILITY, IN- CORPORATION IN CODE, AND EF- FECTIVE DATE. If any person decides to appeal any decision. made on the above matter, he -she will need a record of the proceedings, and for such pur- poses, he -she may need to ensure that a ver- batim record of the proceedings is made, which record includes the testimony In evidence on which the appeal is based. _ Board of County Commissioners 1840 25th Street Vero Beach, Florida 32%0 June 17,1982. 8pOK 5q. FAE 315 JUL 71982 ,. ;Baox 5®F A16 Attorney Brandenburg reported that Sheriff Dobeck wrote a note indicating he would not be able to attend the hearing and requested Mr. Brandenburg to express his strong feeling in favor of the proposed ordinance. It was noted that the Florida Highway Patrol troopers had expressed similar sentiments earlier today. Chairman Scurlock raised a question about the language identifying the specific ammunition, noting that in any cases where this type ordinance has been put in effect, it inadvertently included types of ammunition that might be acceptable for other purposes. Attorney Brandenburg felt that the language as it currently exists in the proposed ordinance could raise some questions as to the scope of prohibition; however, it is the only language he has been able to come up with. The Chairman asked if anyone present wished to be heard. Bill Stegkemper came before the Board and made the following statement: STATEMENT OF BILL F. STEGKEMPER BEFORE INDIAN RIVER COUNTY COMMISSION 7/7/82 3:30PM Hello, thank you for alloijing me to appear before you today. My name is Bill F. Stegkemper. I have lived in Vero Beach since 1949, and I am a professional real estate person. I am here today to speak against Indian River County's official adoption of this mis-directed K.T.W._penatrating, cop killer bullet ban. As to my background and qualifications in this matter, I have been a police officer and criminal investigator for many ,years. I am licensed by the Florida Department of Education as a teacher, raving taught lata enforcement and firearms training on a college credit level. Further, I am licensed by the Secretary of State of Florida, to qualify security guards for their gun permits. For you to officially ban this bullet is like prescribing a drua for a non-existant disease. While saying this, I want you to be aware that my oldest son is a uniformed police officer, and that do years ago I purchased a "second chance" body armour -vest for him. It is most important for us to realize that K.T.W. ammunition is quite expensive, $1.50 per single round, and that no police officer has knodingly had a K.T.W. bullet fired at him, let alone a police officer killed or wounded by a K.T.W. bullet. The news media's effort to qenerate controversy over this bullet, has served to nationally advertise a form of ammunition which has not been misused 10 to 15 years of availability. Commissioners, what I must say is grusome, but is necessary to put this matter in proper Contex. Death comes about by destruction of body tissue. Disease causes destruction of body tissue, and death occurs. As one grows older body body tissue is not replaced, and death occurs. The energy imparted by a bullet destroys body tissue. The Geneva Convention on Warfare calls for all civilized armies of this world to use full patch (penetrating -type) ammunition, and outlaws the use of dum-dum, or expanding ammunition as inhumane in warfare. If a .38 SPC. bullet of 158 grains weight -is discharved from a pistol at 866 F.P.S., it will produce 400 lbs of energy. If this bullet passes through the body, the tissue destroying energy goes along with it, -out into the atmosphere. If this same bullet is a hollow point, it is designed to expand and will likely dissipate its energy destroying body tissue. Sincerely, I hope that neither I, nor any member of my family is ever shot, but should this occur, I would prefer the bullet would be a penetrating K.T.W. type. For your information testimony before the United State Congress addressing this matter, has been provided to you by the Unified Sportsman of Florida, a statewide organization, with several thousand paid members. A careful analysis of this information will show, that attempts to ban ammunition of this type, poses a serious concern in that the definition of "ammunition of this type" is a very complex and subjective matter. Any JUL 71992 5G�,�;E317 67 JUL 7 1982 50 PAU.3118 index eliminating bullets with sufficient penetration would also eliminate practically all bullets used by sportsmen for hunting, or homeowners.for self-defense, etc. Some types of ammunition may be stopped by body armour if fired from a short barrel pistol (which the news media refers to as a Saturday night special ) but not from a longer barrel which delivers more power to the same bullet. For example, the type of body armour vest I purchased for my son, will stop 9m.m. pistol rounds manufactured by Winchester or Federal Cartridge Companies, but will not stop 9m.m. surplus military ammunition available on the market, manufactured by Canada, Czechoslovakia, West Germany or Belgium . Remember the Geneva Convention on Civilized Warfare. The vest will stop .357 magnum bullets, if fired from a 4" barrel revolver, but not if fired from a 6" barrel. Additionally, penetration is dramatically increased if the vest is wet. Bullets cannot be divided into classes which will, and will not penetrate body armour. Given the fact that the proponants of this bullet ban have not come forward with a single example of where this ammunition has been criminally abused, that its cost, its restricted availability, and (prior to nation wide N.B.0/TV, and C.B.S. its limited advertising - must make such mis-use a rarity, there seems little reason to focus additional public attention on this ammunition, much less start people thinking of ways in which to _ circumvent its protection. For your information, this matter was addressed in the last special session of the legislature, addressing additional criminal penalties on the use and possession of K.T.W. ammunition in the commission of a crime. This legislation passed in the senate 39 to 0, but because the Senate and Nouse bills differed, the legislature adjourned before agreement was reached. The recent N.B.C./TV and C.B.S. publicity on this matter may well cost the lives of some police officers, who_now decide riot to wear their vests, believing it will. not stop a bullet. Body armour is not bullet proof, body armour is bullet resistive. i respectfully urge that we not address this issue on a county level. Commissioner Fletcher asked if Mr. Stegkemper knew of any sportsmen in Florida in possession of teflon coated bullets, and Mr. Stegkemper stated that he has loaded and shot a million bullets over the years and never had a -teflon coated bullet in his possession. does not store them. He noted that the gun shop Captain Carl Pease of the Vero Beach Police Department showed the Board a KTW bullet. He then displayed a bulletproof vest, noting that it actually is only bullet resistant, and 8O% of the ammunition made will penetrate a bulletproof vest, depending on length of the gun barrel and velocity. Captain Pease next presented a blow gun, a weapon which has been around for centuries, and informed the Board that it also will penetrate a bulletproof vest. Captain Pease was sure the proposed ordinance is well intended, and pointed out that if he believed it would benefit policemen, he would not be here speaking against it. He, however, felt this should be addressed on a state or federal level rather than at the local level and as a felony rather than a misdemeanor. The Captain emphasized that he believed in the right of the people to bear arms, and this ordinance would be one step in limiting that right. Dr. Aris Lindsey, long time county resident and local veterinarian, informed the Board that guns have been his main hobby for many years. He then proceeded to display various types of ammunition which are widely used for hunting and for official shooting matches, the use of which would be prohibited by the wording of the proposed ordinance. Dr. Lindsey also displayed ammunition made in a local gun shop, which was of the same expanding type used to shoot President Reagan. He noted this would not be considered illegal under the proposed ordinance. Dr. Lindsey emphasized that it is preferable to be shot with a full jacketed bullet which will penetrate and go on through J U L 7 1982 69 BOOK 50 PAGE 319 J U L 71992 :. BOOK 50 Pr,- 320 rather than the expanding type bullet which does much more damage. He felt the ordinance needed to be aimed at criminals and should include a statement such as "when used in crime." Robert MacFarland of Vero Beach commented that the purpose of this ordinance obviously is to protect law enforcement officers and that, of course, engenders sympathy, but he felt that no matter who wrote this ordinance, it would be impossible to limit it so that it would not ban a large segment of all bullets. He noted that testimony given before Congress concurred that such legislation would invariably include a wide range of ammunition used for hunting and target shooting. Mr. MacFarland felt that any such legislation should be considered in the Florida Legislature and not at the local level, and urged the Commission not to pass the proposed ordinance, which he felt is unnecessary and unworkable. Reed Knight, Jr., informed the Board that he has been selling equipment to police officers for two years and he does contractual work for the government in determining ballistic penetration through body armor. Mr. Knight then explained about penetration of bulletproof vests and reviewed types of ammunition, jackets, coatings, etc., stating that the ordinance as written would ban more than half the ammunition sold today. Mr. Knight reported that penetration depends on velocity and weight of the projectile and displayed a bullet made in Czechoslavakia which is smaller but has much better penetration than KTW and which has been sold by the millions over the years. Mr. Knight continued that the effect of blunt trauma is much worse -than a bullet penetrating through. He felt if we really wanted to help the Police, there should be a mandatory death penalty for anyone shooting an officer or attempting to. He urged that the Commission not pass the ordinance as proposed, but let it be handled on a higher level. Richard Pressinger read a statement in favor of helping policemen by banning the KTW bullets. He did not believe this would ban other bullets and stated that until someone can convince him that it is so important to have these bullets, he could only support a ban on their existence. Chris Demetros, retired New York City Police officer, believed that policemen do not want this law, but rather want laws so they can effectively charge the people who use the guns illegally. He pointed out that in time of war we need our citizens to be able to bear arms, and without guns we would not have our freedom very long. Grady Tyner, county resident for 63 years, gunsmith and former member of the Marine Corps, noted that when World War II started, the first line of defense we had was citizens who kept surveillance and patrolled the beaches with guns. He felt an ordinance such as the one proposed would be like an old quilt which every county patched, and he believed this should be handled on a state or national level. Michael Hayes questioned the wording of the proposed ordinance, which was designed mainly for the purpose of banning KTW bullets because they can penetrate a bulletproof vest. Since it has been demonstrated that many other bullets, as well as a blow gun, can penetrate such a vest, he did not see how the Board could justify passing an ordinance that would only eliminate one bullet. Attorney Brandenburg pointed out that at the beginning of the hearing, he indicated that there might be problems with the wording and that is the purpose of this public hearing. He noted this ordinance was passed in other counties. Commissioner Lyons commented that the original intent of the ordinance was to prohibit a bullet that would J U l 7 1992 wK L 71 JUL 71982 .14.150 i.�.322 penetrate a protective vest, but public hearings are for the purpose of learning, and he has learned today that this definition is much too broad and that it is doubtful whether we can come up with a satisfactory definition. Mr. Hayes felt such a ban would be detrimental on a county level. ON MOTION by Commissioner Lyons, SECONDED by Commissioner Bird, the Board unanimously closed the public hearing. ON MOTION by Commissioner Lyons, SECONDED by Commissioner Bird, the Board by a 4 to 1 vote, Commissioner Wodtke voting in opposi- tion, agreed to table the proposed ordinance banning teflon coated ammunition on the basis that the definitions are so broad that it takes into account many more things than were origi- nally contemplated. ACT (Aware & Concerned Taxpayers) ADDRESS COMMISSION RE SELLING THE HOSPITAL Beulah Law, President of ACT, came before the Board and stated that she would like to see the Hospital operated without any expense to the taxpayers. She stated that she has noticed that any time a business is operated by a government, even.if it doesn't pay property taxes, it can't operate without tax money. She stated that she was not for selling the hospital, but would like to see it run in a . businesslike way and favored holding an open public hearing as set out in the following -Resolution of ACT. M2�Till xx � RESOLUTION: June 28, 1982 "AWARE AND CONCERNED TAXPAYERS" INC. INDIAN RIVER COUNTY FLA. .POST OFFICE BOX "K" VERO BEACH,FLA. Beulah Law,President John Seramur, Vice Pres. Alice Yarick, Secretary Louis McBane, Treasurer Bill Stegkemper,Director Frank L. Zorc, Director RESOLUTION OF "ACT" %L -n bership By majority vote the membership of ACT has decided to Take the initiative to make arrangements for a open form public hearing on the Question of considerating of selling our hospital or eliminating the consideration. ` ACT Will invite the County Commission to conduct the hearing. If the commtnission declines, ACT will conduct the hearings. All other taxpayers groups will be invited to participate in the planning of format and process of the public hearings. Hearing will include any interested person or company who wishes to address the public pro or con, RE Selling the Hospital to private o��m�nerership. A time limit for each speaker will be agreed upon. Equal time and equal' numbers will be permitted to express opposite viewpoints. Meeting will be scheduled for a three hour period. If needed a second hearing will be scheduled. Meeting tire will be evening 7 — 10 pm. Designated place. Upon conclusion of hea-rings, every participant or person attending will be asked to vote upon the idea of requesting the County Commission to include questions of the november election ballot on the issues. Questions would" be formulated by a committee for conmission acceptance and approval. NOTE: The above resolution was voted upon by all attending the June 28, Special Meeting of "ACT" . It passed - 41 in favor 1 opposed 2 abstained In separate action immediate following, the same resolution for public hearing on beach restoration was voted upon. 44 in favor 0 opposed JUL 71982 Bga 50 _PASE•323 73 JUL 71982�.oK 5-0 FA;,024 John Seramur, county resident and member of many civic organizations, stated that the reason he got into this matter is that he originally voted to put the hospital in a tax district, which is the worst vote he ever cast in his life and he now feels he must make this up to the county residents. Mr. Seramur went into a lengthy discussion on the merits of the Longwood Medical Center in Fort Pierce and the Sebastian Medical Center, both of which pay taxes, and felt it is the responsibility of the County Commission as peers over the Hospital District to hold public hearings on the matter of selling the hospital. Mr. Seramur referred to the following letter written by Robert Ballard, Chairman of the Hospital Board of Trustees, to County Commission Chairman Don Scurlock, as being prejudiced against ACT and questioned the statement that the Hospital Board will conduct adequate public hearings before making a decision as to the future direction of the hospital. Mr. Doug Scurlock Chairman Indian River County Board of County Commissioners 1840 25th. Street Vero Beach, F1 32960 Dear Mr. Scurlock: i:14 1000 1016th Street • 305-567-4311 Vf?ro Bergh, Florida -32960 July 1, 1992 Executive Director .Jahn T. Hoyt Last week I attended a meeting of a rather recently formed small group of citizens known as Aware Concerned Taxpayers. This group should not be confused with the long standing, highly respected group of,citizens known as the Taxpayers Association. During the June 28th. meeting of ACT a resolution was presented to request the County Commission to hold public hearings concerning the future operation and ownership of Indian River Memorial Hospital. I realize that the County Commission must address itself to al' requests by the public and, therefore, I offer you the following information which outlines the current actiob by the Indian River Memorial Hospital Taxing District in regards to this matter. More than a year ago the hospital Trul§tees entered into a contractual relationship with TriBrook Group, Inc., a highly respected national I hospital consulting firm. They were directed to project the future needs of the hospital over the ne:kt several years and investigate both the present and alternative methods of operation which would prove to be the most beneficial in providing the highest level of health care in the most efficient aid cost saving manner. This type of investigation by third party exl5erts is nothing new to the Hospital District and indeed previous investigations ordered by former Board of Trustees have been conducted since the existence of the Hospital District in order to perform responsible management and good planning for the day to day operations of the hospital. Anyone t,,7ho has read the ne:aspapers or listened to the media is well aware that Frank Zo'rc and a fe--'i individuals led by Mr. Zorc have an obsession to sell the hospital, and it .--ould appear his preference of the purchaser would be to the proprietors of the hospita' in Fort Fierce, namely, the Hospital Corporation of America. When I became Chairman of the Board of Trustees ii'l January, I took ea+_ care in the expansion and se'_ect-i.on process of +-he nuilding> an,' un'. Range Planning Committee. They were directed to work in unison with TriBrook Group, Inc. to insure a full and impartial investigation'of the various alternatives as they pertain to the ownership and operational met'lod for the future of the hospital. T have listed below the ra:reT of :hose individuals whose integrity is beyond reproac:i ar_c experi-nce highly qual-.fies.them to make intelligent decis--ons. J UL 7 1982 75 Boa 50 P sc X25 J U L 71982 ok "F326 This Long Range Planning Committee ha81 meticulously spent hours investigating the facts relative to.deVeloping a recommendation to the Board of Trustees which will be clearly in the best interest of the patients and the taxpayers. Upon receipt of this recommendat_oa the duly elected members of the Hospital Board of Trustees will be faced with making the ultimate decision, should changes in tl^e situation be warranted. I assure ycu that both this Committee, whose many meetings have been open to the public, and the Board Of Trustees are well aware of their responsibilities as directed by the Articles of Declaration and Bylaws which created the speC':al district. I further assure you, as Chairman, that adequate public hearings will be conducted by the Board of Trustees before thc!y make their decis-ion as to the future direction of the hospital. Sine RFB:br OBERT BvL ARD Chairman Hospital Board of Trustees Chairman Scurlock asked if, as a group, ACT has appeared before the Hospital Board and asked for a public hearing and a referendum. Mr. Seramur replied that the Hospital Board has stated they will have a public hearing, but their Board room is too small, and ACT felt a public hearing should be held in a much larger place. They did not expect the County Commission to conduct the hearing but they would like the County Commission to place the question of the Hospital on a referendum on the ballot since the people own the hospital. Chairman Scurlock commented that one alternative for having a referendum is to ask the Hospital Board to place it on the ballot, and he wished to know if there is another procedure involving a petition with a certain number of signatures. Attorney Brandenburg stated that the County Commission is given the authority to place straw ballots. He did not believe the Hospital District has that authority though they could ask the Commission to place the matter on the ballot. There is no mandatory petition he knew of that would require the Commission to place this on the ballot. Commissioner Lyons stated that he did not want to be put in a position of preempting activities that properly should be handled by the Hospital Board, and when it comes to putting this matter on the Ballot, he would hope when the time comes to make that decision, that ACT has formally exhausted their redress with the Hospital Board. Mr. Seramur informed the Board that ACT is frustrated and has not been able to get anywhere with the Hospital Board, which is why they came to the County Commission. Lengthy discussion followed as to the fact that the County Commission feels strongly that the Hospital Board members are elected officials and the proper chain of command should be followed. If, however, after ACT has made every effort in approaching the Hospital Board, they find a public hearing will not be granted, they then can conduct their own hearing, after which ACT still would have the ability to petition the County Commission to put this matter on a referendum. Mr. Seramur stated that if ACT had a hearing, it would be advertised to be held at a large place such as the Community Center or even the stadium, and he believed the public would vote 3 to 1 to sell the Hospital. Commissioner Lyons emphasized that the question before the Board is a public hearing, and he did not believe the County Commission should be involved in that. Bill Stegkemper, Director of ACT, noted that the Hospital Board voted 7 to 1 to do away with the issue of selling the Hospital. He stated that the Hospital repeatedly and overwhelmingly resisted efforts to drop construction of Indian River Boulevard, and he expects that certain people with influence on Hospital Board do not want the hospital to•be sold. Mr. Stegkemper understood the Commission's reluctance to step in the shoes of the Hospital Board, but felt there must be an open meeting because if the J U L 7 1982 77 woK 50 PAGE 32 7 J U L 7 198250 VOK F-Al"X28 Hospital Board has the meeting, all that will come up on the agenda is what they want to come up. Frank Zorc, Director of ACT, wished to try to impress on the Commission why it is useless to go to the Hospital -- Board and why the County Commission should be the ones to hold the public hearing so the people can have a truly open forum. He believed that the hospital staff and employees provide excellent patient care and stated that this is not the issue; the issue rather being poor financial administration. Mr. Zorc continued that while he was not convinced the hospital should be sold, he was completely certain that the whole truth about selling it has not been made available to the public. Mr. Zorc claimed that the Hospital Board of Trustees has biased, prejudiced, pre -conceived attitudes, and then described at considerable length the make-up of the Advisory Committee, which was appointed by the Hospital Trustees. He passed out a chart detailing what he felt was the unusual composition of this committee and pointed out possible conflicts of interest. Mr. Zorc continued to discuss the influence on this committee of biased people who own property near the hospital and talked about personal relationships between the Long Range Planning Committee and the Hospital Trustees. He emphasized that the public, who are the true owners of the hospital, must be given the option of considering selling the hospital, and noted that the County Commission is the only body which can place this matter on a referendum and take it to the people. Mr. Seramur commented that the people in the Sebastian area are asking why they should pay taxes to support Indian River'Hospital when they have their own facility which pays taxes. Commissioner Fletcher pointed out that the Hospital Board decided on this issue by a 7 to 1 vote, and they obviously reached that decision based on some information. He wished to know if the issue is that the information is not clear to ACT or that it is not clear to enough people? Mr. Zorc stated that it is not clear to enough people and they really have never been invited to participate in a public manner. Joseph Steinitz pointed out that it was not the Hospital Board of Trustees which voted 7 to 1 against selling the Hospital, it was the Long Range Planning Committee. vote. Mr. Zorc argued that the Hospital Board was behind that ON MOTION by Commissioner Lyons, SECONDED by Commissioner Bird, the Board unanimously agreed to extend the hour of adjournment of today's meeting to 5:15 o'clock P.M. Discussion followed in regard to the time element' involved, and Mr. Zorc stated that time is of the essence and felt there is a strategy to stall this matter to make it too late to get on the ballot in November. Chairman Scurlock had a very real problem with the County Commission conducting a public hearing as requested by ACT and interfering in the jurisdiction of another governmental agency, but felt if a large enough percentage of voters said they want a specific question posed at the next general election, this Commission certainly could address that. Commissioner Lyons complimented the members of ACT on their calm approach and presentation, but pointed out that the long term solution lies in who the public elects to the Hospital Board and asked if there really is an emergency involved in connection with a change in the hospital. WOK 50 !A!cE 329 JUL 71982 79 JUL 71992 ROOM, '50, �f: 334 Mr. Zorc believed the decisions about the hospital are being controlled by a small group of people and that it is close to an emergency situation. He felt Commissioner Lyons is talking about a 4 year delay. Discussion followed about the fact that the terms of those on the Hospital Board are staggered and four out of seven Hospital Board members are up for election in November. Mr. Zorc noted that the Hospital Board is in the process of making a decision and because of how they have gone about it, he believed they have not represented to the taxpayers that we have an emergency situation. Commissioner Fletcher felt the letter written by Mr. Ballard, which was read by Mr. Seramur, indicated that the Hospital Board is responding to ACT's concern for a public hearing. Mr. Zorc stated that there is no way Ballard and that group can provide a fair hearing. Commissioner Fletcher believed there would be a problem involved if the County Commission inserted themselves into this situation at this point. He pointed out that Mr. Zorc is still a member of that Long Range Planning Committee and as such he has access to the information presented to -cause the 7-1 vote, which the general public might not have. Mr. Zorc stated that it is the attitude of the Hospital Board members which prevents further discussion. He stated that he was prepared to accept that the County Commission would decline to run a public hearing, and he would be glad to work with the Hospital Board of Trustees in cooperating with any civic group in holding an open public hearing. Commissioner -Bird felt -that Mr. Ballard's letter says exactly that. Chairman Scurlock inquired about any policy there has been with reference to putting an item on a referendum in -0 terms of numbers of signatures, and it was noted that the Statute does not call for signatures. Chairman Scurlock asked if the Commission had any feeling about a number desired, and Commissioner Bird noted if we put a referendum on the ballot, it would be our responsibility to educate the people of the county about the item concerned, and he believed, this could cause a conflict. Commissioner Fletcher expressed interest in taking a good hard look at the question, but Commissioner Bird noted that this Commission is not the proper forum for that. Mr. Zorc believed the public should be educated and believed the people are ready to come and speak. He wished to have a fair, impartial judge conduct the meeting and did not believe we can get that from the Hospital Board. Discussion followed as to the possibility of Commissioner Fletcher volunteering to conduct such a meeting. Mr. Zorc stated that would satisfy him, but Mr. Fletcher stated that he would not handle the gavel at such a meeting unless he was assured the Hospital Board will not hold a public hearing. Chairman Scurlock asked if we are going to establish some sort of policy for the Commission to act on requests of this kind as it is possible we could be approached by another group tomorrow with a similar request. Mr. Zorc stated that he would suggest to the ACT organization that they request the Hospital Board of Trustees to hold a public hearing as quickly as possible and let Commission Fletcher chair the meeting. Commissioner Fletcher informed Mr. Zorc that is not what he had said. Mr. Zorc continued to argue that it is not possible to have a fair hearing run by the Hospital Board. He quoted the Sebastian Hospital Administrator as saying that the JUL 7 1982 81 Bo 50 p E 331 7 r �oK 50 Px r 3,32 J U L 7 1982 Indian River Hospital Board is not interested in listening to anyone. In further discussion, it was emphasized that ACT must give the Hospital Board an opportunity to hold hearings - before the County Commission can take any action. Commissioner Fletcher stated that if ACT can come back and show him where any individual was denied input, he would be happy to conduct the public hearing for them. It was agreed that the answer is for ACT to go back and pursue the last paragraph of Mr. Ballard's letter. ON MOTION by Commissioner Fletcher, SECONDED by Commissioner Lyons, the Board unanimously extended the meeting to 5:30 o'clock P.M. ACT DISCUSSES BEACH EROSION CONTROL PROGRAM Commissioner Lyons felt the Commission already had made their position clear when this came up last time. He explained the Commission simply kept the issue alive with the Corps of Engineers and at the same time were seeking information so we would have some idea what we might be called upon to do. When we got that information, he felt it was pretty clear that we would ask for adequate public input before we decided what to do or before we spent a nickel of the taxpayer's money. Commissioner Lyons stated that he has not changed his position on this issue, and Commissioner Bird felt that he had stated the Board's position very accurately. Chairman Scurlock concurred that the Commission does not have any desire to commit any funds until we have all the information and public hearings, and he believed this was the position of the majority of the Commission. Frank Zorc noted there is another item on the today's agenda regarding a Resolution to be sent to the Army Corps .W of Engineers re beach renourishment, which he believed interrelates to this discussion, and informed the Board that he has a tape recording of a telephone conversation with the Department of the Army which he felt the Board should hear before adopting the Resolution which was just passed out this morning. Commissioner Bird agreed we do need to discuss this item today as a response is needed by July 14th. PROPOSED RESOLUTION RE BEACH RENOURISHMENT The Board reviewed the following draft of a letter of transmittal and proposed Resolution: DRAFT REPLY District Engineer U. S. Army Engineer District, Jacksonville P. 0. Box 4970 Jacksonville, FL 32232 Dear Colonel Devereaux: This is in response to your letter of 2 July 1982 requesting a statement of support for the Indian River County, Florida project. You may be assured that we continue to strongly support the Indian River t County Florida project, and wish to assure that planning and engineering design will proceed without interruption. In that regard, we also express our willingness, and intent to financially participate in the project in accordance with National policies in effect at the time of project construction. We understand this letter is an expression of intent and not a contractual obligation. • Sincerely, CHAIRMAN JUL 71992 83 wx 50 PAGE x.33 E =J U L 7 1982 RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS j OF INDIAN RIVER COUNTY REQUESTING THE SECRETARY OF THE INTERIOR AND THE ARMY CORP OF ENGINEERS TO E116PEDITE THE INDIAN RIVER COUNTY FEASIBILITY REPORT FOR BEACH EROSION CONTROL. 59 334 WHER13AS on June 10, 1975, the Department of Army Corp of Engineers conducted a public hearing in the City of Vero Beach for the purpose of presenting various methods of beach renourishment and erosion control to the general public, and 'WHERT;AS the Indian River County Commission adopted Resolution No. 75-37 on June 27, 1975, summarizing the position of the City of Ve;,,o Beach, the Sebastian Inlet District, and Indian River County oq the State of Florida and Army Corp,of Engineers recommendation with respect to beach erosion in Indian River County, and WHERg;AS subsequently the Commission adopted Resolution No. 77-113, acgtepting the Corp of Engineers Feasibility Report for Beach Erosion Control in Indian River County and agreeing to'act as the local sponsor for any projects resulting from this study, provided that the Commission have the authority to establish priorities for all construction projects and further recommending that the Corp of Engineers complete the report and request authorization for the project from the United States Congress, and _ WHEREAS Indian River County received a final draft of the Feasibility Report for Beach Erosion Control dated September 1979 and on November 21, 1979, and reaffirmed the County's position set forth in former Resolution 77-113 regarding the Beach Erosion Control Study, and WHEREAS beach erosion continues to plague our coastline causing great c{pncern to local residents, merchants, tourists and elected officials. NOW TgEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY — COMMISSIONERS OF INDIAN RIVER COUNTY THAT: 1. The County Commission requests the Secretary of the Interior and the Secretary of the Army to expedite the Beach Erosion Control Plan for Indian River County thereby placing the local government: in a position to make a decision on the future of the coastline lying within the county limits. =- 83-A r Chairman Scurlock expressed concern about signing the letter as drafted, which was forwarded by the Corps and just arrived yesterday. Commissioner Wodtke noted that it is a new request for a statement of support of the Indian River County project. He pointed out that this letter is a letter of intent and not a contractual obligation, and it will serve to keep this project moving up to where if we want to sign a contract, we will know what our obligation would be. Commissioner Fletcher felt this letter expresses the county's intent to cost -share, and argument ensued as to the intent of the letter and whether this is just aimed at pumping sand on the beach and only that. Commissioner Lyons commented that it must be the taxpayer's decision whether or not to pump sand on the beaches, and one of the ways to go on to a referendum is to keep this project moving on. There is no sense having a referendum about something that is not going to be. Chairman Scurlock had a problem with saying that 'ewe continue to strongly support" this project. He stated that he would not support this as an individual, but if a referendum directed him to do so, that would be a different matter. He noted that other alternatives presented for beach restoration were eliminated from the plan. Commissioner Lyons stated that he would not personally plan to support pumping sand on the beaches, but he felt the Resolution places us in a position to make a decision on the future of our coastline. Commissioner Wodtke addressed the concern that the ad valorem taxpayer would have to pay for this project and pointed out that we have not yet addressed how this would be paid for. He believed the manner of funding is the key to whether the program will be acceptable or not, and there are different ways to accomplish this funding. He further noted JU BgoK 50 %E335., 7 1982 84 • JUL 7198Z 50 336 that the entire project is within the City of Vero Beach, and they will have a lot of say. Commissioner Wodtke agreed there is a lot of concern and an in-depth study of funding is needed, but noted that all we are trying to do is get - this to the point where the state and federal government will approve the project and say how much they will fund and what the local share would be; then we can make the decision. We have to make basic assurances to get them to move this through Washington, but it is not a contract at this time. Mr. Zorc urgently requested that the Commission members listen to the tape of his phone conversation. ON MOTION by Commissioner Lyons, SECONDED by Commissioner Fletcher, the Board unanimous- ly extended the meeting to 6:00 o'clock P.M. Mr. Zorc then proceeded to play a tape recording of his telephone conversation which commenced with the following statement: "Tape recorded telephone conversation between Frank Zorc and Mr. Don Dillon, who is in the office of the Assistant Secretary of the Army, William Giannelli, in Washington, D.C., re beach restoration in Vero Beach. The purpose of this conversation is to try to establish whether the Department of the Army is really looking for community input at this time the way Mr. Ralph Sexton has been advocating throughout this City and County. This conversation indicated that the current programs that are being talked about only apply to sand pumping and there are no other alternatives of a more permanent nature being considered at this time. the conversation." I ask that you please listen to =5 Mr. Zorc proceeded to explain to Mr. Dillon that consideration is being given to sending a letter stating that the County wants more information but does not want to assure that they will sponsor the project. He then asked about the cost of the project. Mr. Dillon stated the only cost they know of was in the report prepared by the Chief of Engineers, and if any more information on cost is needed,.it will be necessary to talk to the Jacksonville District, who prepared the report. Mr. Zorc then, approximately three or four times, asked Mr. Dillon if he was not saying that the Corps is not looking for any letters from governmental entities at this time, as follows: Zorc: You are telling me that you are not looking for any letters. Dillon: Not until we write you one. We have gotten several letters from individuals..... Zorc: You really are not looking for anything from governmental entities at this time. You are going to write us first and then look for a reply. Dillon: That is right. We have no objections if they want to write and say whatever they have to say. Zorc: We have been told that you are looking to hear from us now. Dillon: No. That is not true. We have heard from ....... property owner on the ocean. I guess he has a special interest. Zorc: He does have a special interest. There is no question about it. He is the one promoting governmental entities to write this letter reaffirming they are sponsoring this project. Some discussion ensued about policy, and Mr. Zorc stated that, in other words, you are saying you do not really have policies adopted yet. Mr. Dillon commented JUL 7 1982 Rga, 50. PACE 337 Fr - J U L 7 1992 50 Fi;F 3.3$ that, if at this point, there really is no intention of pursuing the project, they can write us accordingly. Mr. Zorc then inquired about the possibility of investigating other new methods or whether what we are - talking about is just a project to pump sand. Mr. Dillon stated that is what the report recommended and that is what they would be talking about. If the County knows that is not what they want, they can write us that they don't want to participate in pumping sand, and we will recommend to Congress........ End of conversation. Commissioner Wodtke felt the taped conversation pretty well points out that until we hear from the Department of the Army, they don't need a reply. We do, however, have a letter from Colonel Alfred B. Devereaux, Jr., of the Corps of Engineers, asking for a reply. Discussion ensued on the wording of the drafted letter of transmittal, and.Commissioner Bird agreed the draft reply is a little stronger than the Resolution in that it says "we strongly support" and "wish to assure." He felt it should state that we "wish to be assured." Attorney Brandenburg felt in this letter the Commission would be telling the Corps that they wish them to continue with their planning and engineering. Commissioner Lyons commented that the statement was made that the project as envisioned is all within the City of Vero Beach, and he, therefore, suggested we might wait until we have an official request from Vero Beach for us to pass on to the Corps of Engineers. Fred Rouse informed the Board that he serves on the Joint City/County Beach Erosion Committee as an appointee of the City, and he has an extensive background on beach erosion on the Great Lakes. He felt the letter of response should express the sentiments of the Board and not just copy the draft they have sent. Mr. Rouse believed the only answer we have asked for out of Washington is merely to get the decision-making process up there as to a formula about participation. He pointed out that we cannot make a recommendation until we know where we stand. He noted that, if you understand the federal process, it sometimes takes 20 years to get to the point we are at here now in Indian River County, and if we pass on this, we go back to the bottom of the pile. Mr. Rouse emphasized that if we decide we don't want it, it will go to somebody else, and he felt we owe it to the general community to address this. Chairman Scurlock suggested writing a letter indicating that this has been on-going for almost 11 years; we are very desirous of information to make a determination as to whether to support the project locally and intend to go to a referendum to make that determination. Mr. Rouse felt that is fair and reasonable and would serve to move this thing along. William Koolage, reported that the Taxpayer's Association has taken a strong stand against beach restoration by pumping sand, which would not be a permanent solution, and he felt any referendum would be against it. He did not feel the Board should write a letter of any sort before having a referendum. Commissioner Wodtke believed the public's attitude will depend on who is going to pay for this project, but Mr. Koolage was of the opinion this project will only help a few people on the beach. Commissioner Bird believed it is premature to take that firm a position before we get the final formula and know where these funds will come from since it is possible they might come only from the taxpayers on the beach. JUL 7 1982 M Booz 50 +Aq.3 39, JUL '71992 Q �Pmo 34o Dr. Brothers stated that he has been around the ocean all his life and believed pumping sand is about the worst thing you can do for erosion; certainly joists and groins are more permanent. He believed we should have a study. - Ralph Sexton, property owner, came before the Board and noted that this issue was decided back in 1975 by Resolution 75-37 wherein the City of Vero Beach, the Sebastian Inlet District and Indian River County agreed to and supported certain recommendations of the Army Corps of Engineers within the City of Vero Beach and the County agreed to be the sponsoring agent for the project. This resolution was. signed June 27, 1975 by former Commission Chairman Alma Lee Loy. Mr. Sexton continued that further public hearings are not needed. There is a need for beach restoration, and this was all established at previous hearings which were held between 1971 to 1975 and at which hearings, beach fill was the method adopted. They also adopted the Sabecon Reef, which the Corps has thrown out. Mr. Sexton continued that there is no way of getting sand on the beach unless it is put there. The federal government supposedly will pay half; all we are asked to come up with is.$548,000. There are 63,000 residents in the County and we are visited by 375,000 tourists every year who spend 145 million dollars. He felt an expenditure of $500,000 is well worth it. Mr. Sexton reported that we are losing our beaches at the rate of 9/10 of a foot a year and urged that we don't waste any more time and lose these funds, which will jeopardize our beautiful city and the economy of the county. Mr. Sexton emphasized that this is designed to be a 50 year project,and it will have to be maintained as everything has to be maintained. The designated cost of maintenance is $50,000 a year. Mr. Sexton urged that the Beach Erosion Committee be sent to look at Miami Beach and see what they have done; they now have about 200' of beach with dunes. He further urged that the Committee also go to Canaveral Beach and see how it has held up, as well as go to Crandon Park, Haulover Park, and Melbourne Beach and ask for a report on whether or not it was worth the cost. Chairman Scurlock stated that his suggestion is to send a letter to the Corps indicating we want pertinent information to conduct a referendum. ON MOTION by Commissioner Lyons, SECONDED by Commissioner Fletcher, the Board unani- mously authorized the Chairman to construct a letter to the Corps indicating that until this community has full information as far as a funding formula and we have the ability to go to the public through a referendum, we are not in a position to make a firm commitment, but desire information so we can make that decision locally. Attorney Brandenburg commented that at the last meeting he was instructed to construct a resolution and he wished to know if the Board wanted the resolution or just the letter. He was informed they wanted just the letter. PURCHASE AGREEMENT FOR R/W FOR 8TH ST. EXTENSION - LaFEVERS Right-of-way Purchase Agreement with Mr. C. L. LaFevers, Jr., for the extension of 8th Street is hereby made a part of the Minutes as approved at the Regular Meeting of June 2, 1982. JUL 7 1982 90 B99K:: _:5Q-pAfF341 - � J r � n JUL 7 IVVZ LiK ;p, ft'Rn� 342 RIGHT-OF-WAY PURCHASE AGREEMENT THIS AC'rREEMENT, made this 29th day of June , A.D. 1982, between MR. C. L. LaFEVERS, JR., having a mailing address of P. 0. Box 1002, Vero Beach, Florida 32960, hereinafter called Seller, and INDIAN RIVER COUNTY, a political subdivision of the State of Florida, having its administrative offices at 1840 25th Street, Vero Beagh, Florida 32960, hereinafter called Buyer. (Wherever used herein, the terms Seller and Buyer shall include the singular and plural, heirs, legal representatives, successors and assigns, as the.context may require.) WITNESSETH: WHEREAS, the Board of County Commissioners of Indian River County, Flgirida, at a meeting duly called and held on the 2nd day of June, A.D. 1982, signified its agreement to the condi- tions outlined herein. NOW, THEREFORE, in consideration of the mutual promises, conditions and covenants set forth herein, the Buyer and Seller agree as follows: 1. TITLE - SUBJECT PROPERTY The Seller shall sell and the Buyer shall buy the following described real property, located in Indian River County, Florida, hereinafter referred to as Subject Property: AS DESCRIBED IN EXHIBIT A 2. PURCHASE PRICE Buyer shall pay to Seller at closing, subject to adjust- ments or set-off S. required by this contract, the sum of EIGHTY-FIVE THOUSAND and 00/100 ($85,000.00) DOLLARS, said payment to be by bank check signed by the Chairman and Clerk of the Board of County Commissioners. 3. CLOSING.DATE; CONDITION OF PURCHASE; POSSIBILITY OF REVERTER The contract shall be closed and the deed and possession shall be delivered on or.before twenty (20) days after such date as Buyer shall have acquired, by execution of purchase agreements or Order of Taking through condemnation, two (2) certain parcels located adjacent to and immediately south of Subject Property, referred to at this time as the Wright parcel and the Hammond parcel. Seller acknowledges that the sale and purchase of Subject Property is for the use and benefit of the public as a right-of-way for County road purposes (extension of 8th Street); and, in the evenjr this contract has been closed and the Buyer has not undertaken cpnstruction of 8th Street as intended within twenty-four (24) months following closing, or has determined by affirmative Board action not to proceed with the project, which- ever may occur first, either Buyer or Seller may terminate this conveyance by notice to the other, title shall revert to Seller, and Seller agrees to repay to Buyer the full purchase price of EIGHTY-FIVE THOUSAND AND 00/100 ($85,000.00) DOLLARS, including attorney's fees incurred by Buyer in conjunction with said reversion, plus interest on the purchase price in the amount of twelve (12%) percent per annum. 4. WARRANTY DEED, EXISTING MORTGAGE Seller shall convey title to Subject Property in fee simple, by warranty deed, free and clear of any and all encum- brances, and shall deliver no later than closing absolute releases from all existing mortgagees, if any, and if none, Seller shall execute an affidavit indicating same. 5. EVIDENCE OF TITLE Not less than five (5) days prior to closing, Seller shall at his expense deliver to Buyer's attorney in accordance with Standard A (attached) a title guarantee commitment for issuance of an owner's title policy. Seller and Buyer shall each pay half of the premium associated with the issuance of said policy. b. STANDARDS FOR REAL ESTATE TRANSACTIONS The Standards for Real Estate Transactions, attached hereto as EXHIBIT B, shall apply to this agreement where not inconsistent herewith and provided that only the following lettered paragraphs therein shall apply: A(2), D, G, H, L, M, Q, -2- BooK 50 !043. JUL 7 1992 • J U L 7 1992 BOOK 504A -:F'344 R, S, U, V, W. 7. EXPENSES Buyer shall pay all costs and expenses, including State surtax and docuventary stamps, associated with the recording of the deed or any corrective or release instruments required. 8. LASES Seller shall provide a written waiver of claim from any lessee presently having the lawful right of possession to any part of the subject parcel or an affidavit of the Seller stating that there are no such outstanding possessory rights. 9. ATTORNEY'S FEES L Buyer agrees to pay Seller an attorney fee in connection with this transaction at the time of closing in the amount of SEVEN THOUSAND and 00/100 ($7,000.00) DOLLARS. 10. CONTRACT RECORDABLE The parties agree that this agreement may be recorded in the. -Public Records of Indian River County, Florida, at the expense of the recording party. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed in their respective names, on the date first above written. W' ess 1 Wjtn ss STATE OF FLORIDA COUNTY OF INDIAN RIVER C. L. LaFEVERS, JR. The foregoing instrument was acknowledged'before me this 29th day of June , A.D. 1982, by C. L. LaFEVERS, JR. r' N'dta Public l" ` o '1orida U my Commission Expires Jan. -2,1985 Sond.d Thro Twy fain•'�sur. �Q, BOARD OF COUNTY COMMISSIONER§' OF INDIAN RIVER COUNTY �z Ll � ^ �/lk�_ �/�����. DON C. SCURLOCK, JR., Chairman fitness - V Io Attest:61 Clerk STATE OF FLORIDA COUNTY OF INDIAN RIVER The foregoing instrument was acknowledged before me this o? day of , A.D. 1982, by DON C. SCURLOCK, JR., M ' - am- - M Chairman, Board pf County Commissioners of Indian River County, Florida. �ot Public APPROVED S TO FOk-4�� AND LE SU ICI By , . � =,ARY2UVUQ STATE OF FL'ORIVX AT URGF CHRIST9pHER PAULL • MY COMM1.5SION EXPIRES AUG 131955 Assis ant County Attorney iONpED THRU GENERAL INS, UNDERWRITEAE 1982�� 50Au 35 JUL 71982 50°3=n" 346 EXHIBIT A The South 50 feet of that part of the Southwest one-quarter of the Southeast one-quarter of Section 12, Township 33 South, Range 39 East, which lies east of the eastern right-of-way line for'U. S. Highway #1, as presently established of record, and less the right-of-way for 6th Avenue as presently established of record, all situate in Indian River County, Florida. ,TA N®ARDS A. EVIDENCE OF TITLE: (1) I- rete abstract of title prepared by a reputable abstract firm purporting to be an accurate synopsis of the instruments affecting the title to that real propery r• ••.i in public records of that county to the date of this contract, showing in the seller a marketable title in accordance with title standards adopted from time to time by the k lorida Bar, or the local Bar Association, subject only to liens, encumbrance, exceptions or qualifications set forth in this contract and those which shall be discharged by seller at or before. closing, (2) a title guarantee commitment issued by a qualified title insurer agreeing to issue to the buyer. upon the recording of the deed to buyer, an owner guaralrtee in the amount of the, purchase price insuring the title of the buyer to that real property, subject only to liens, encumbrances, exceptions or qualification ,et forth in this contract and those which shall be discharged by seller at or before closing. Buyer shall have 30 ..... days if abstract, or 15 ..... days if title guarantee commitment, from the date of receiving the evidence of title to examine same. If title is found to be defective, the buyer shall, within said period notify the seller in writing specifying the defects. If the said defects render the title unmarketable, the seller shall have 120 ...... days from the receipt of such notice to cure the defects, and shall use due diligence to do so; but if after said time has expired, said defects are not cured. Buyer, upon request, shall have an additional 120 ...... days to cure said defects, and the reasonable costs and fees incurred thereby shall be paid by seller. If Buyer does not cure said defects within said additignal time period, then buyer shall have the option: (1) accepting the title as it then is, or (2) demanding a refund of all monies paid hereunder which shall forthwith be returned to the buyer, and thereupon the buyer and seller shall be released of all further obligations under this contract. B. EXISTING MORTGAGES: The Seller shall obtain and furnish a statement from the mortgagee setting forth the principal balance, method of payment, interest rate, and whether the mortgage is in good standing. If there is a charge for the change of ownership records by the mortgagee, it shall be borne by the Buyer. In the event the mortgagee does not accept the Buyer fol- purposes of assuming the existing mortgage encumbering the subject property, where the mortgage instrument re- quires such acceptance, then and in that event. the Buyer at his option may cancel the contract and all monies paid on the purchase price shall be refunded to him and the parties shall be released from all further obligations. Any variance in the amount of a mortgage to be assumed from the amount stated in the Contract shall be added to or deducted from the cash payment qtr the purchase money mortgage, as the Buyer may elect. C. PURCHASE MONEY MORTGAGES: Any purchase money note and mortgage shall follow the forms generally accepted and used in the county where the land is located. A purchase money mortgage shall pro�,ide for insurance against loss by fire with extended coverage in an amount not less than the full insurable value of the improvements. In a first mortgage, the note �Md mortgage shall provide for acceleration, at the option of the holder, after thirty (30) days default and in a second mortgage after 15 .. days default. Second mprtgages shall require the owner of the property encumbered by said mortgage to keen all prior liens and encum- brances in good standing and forbid the owner ofa property from accepting modifications of, or future advances under, a prior mortgage. Buyer shall have the right to prepay all or any part of the principal at any tq}ne or times with interest to date of payment without penalty and said payments shall apply against the principal amounts next maturing. In the event Buyer executes a mortgage to one other than the Seller, all costs and charges incidental thereto shall be paid by the Buyer. D. SURVEY: The Buyer, within the time allowed for delivery of evidence of title and examination thereof, may have said property surveyed at his expense. If the survey shows any encroachment on said property or that the improvements intended to be located on the subject property in fact encroach on the lands of others, or violate any of the covenants herein, the same shall he treated as a title defect. E. TERMITE INSPECTION: Prior to closing, at Buyer's expense, the Buyer shall have the right to have the property inspected by a licensed exterminating com- pany to determine whether there is any active termite or wood -destroying organism present in any improvements on said property, or any damage from prior termite or wood destroying organism to said improvements. If there is any such infestation or damage, the Seller shall pay all costs of treatment and repairing and/or replacing all portions of said improvements which are infested or have been damaged; provided, however, in the event the cost to be incurred is more than three percent (3%) of the purchase price, then either party may cancel the contract within ten (10) days of receipt of the termite inspection report and cost estimate for effecting exterminations and necessary repairs, Oy giving written notice to the other party. F. INSURANCE: The premium on any hazard insurance policy in force covering improvements on the subject property, shall be prorated between the parties, or the policy may be cancelled as the Buyer may elect. If insurance is to be prorated the Seller shall, on or before closing date, furnish to the Buyer all insurance policies or copies thereof. G. LEASES: The Seller shall, prior to closing, furnish the Buyer copies of all written leases and, if there are any persons in possession without written leasee, estoppel letteri from each tenant specifying the nature and duration of said tenant's occupancy, rental rate, advance rents or security deposits paid by tenant. In the event Seller is unable to obtain said estoppel letters from tenants, the same information may be furnished by seller to Buyer in the form of a Seller's Affidavit. H. MECHANICS LIENS: Seller shall furnish to the buyer an affidavit that there have been no improvements to the subject property for 90 days immediately preceding the date of closing. If the subject property has been improved within 90 days immediately preceding the closing date, the seller shall deliver releases or waiver of all mechanics liens executed by general contractors, subcontractors, suppliers or materialmen and a seller's mechanics lien affidavit. I. PLACE OF CLOSING: Closing shall be held at the office of the seller's attorney or as otherwise agreed upon. J. DOCUMENTS FOR CLOSING: Sellers attorney or other closing agent shall prepare deed, and corrective instruments, sellers affidavit, and closing statement. Buyer's attorney shall prepare the purchase money note and mortgage. Copies of all such documents shall be submitted to the other party's attorney at least 2 days prior to the closing date. Copies shall also be furnished to participating Brokers upon request. K. EXPENSES: - State surtax and documentary stamps required on deed, costs of recording any correcting instruments and the cost of recording the purchase money mortgage shall be paid by the seller. Documentary stamps to be affixed to the note or notes secured by the purchase money mortgage, intangible tax on mortgage, and the cost of recording the deed shall be paid by the buyer. L. PRORATION OF TAXES (REAL AND PERSONAL): Taxes shall be prorated based upon the current year's tax without regard to discount. If the closing takes place and the current year's taxes are not fixed, apd the current year's assessment is available, taxes will be prorated based upon such assessment and the prior year's millage. If the current year's assessment is not available, then taxes will be prorated on the prior year's tax, provided, however, if there is completed improvement of the subject premises by January 1 of the year of closing, then the taxes shall be prorated to the date of closing based upon the prior years millage and an equitable assessment to be agreed upon between the parties, taking into consideration Homestead Exemption, if any. However, any tax proration based on an estimate may at the request of either party to the transaction, be subsequently readjusted upon receipt of tax bill, if a statement to that effect is set forth in the closing statement. M. SPECIAL ASSESSMENT LIENS: Certified, confirmed or ratified assessment liens as of the date of closing (and not as of the date of the contract) are to be paid by the seller. Pending liens as of the date of closing shall be assumed by the buyer, provided, however• that where the improvment has been substantially com- pleted as of the date of the contract, such pending liens shall be considered as certified, confirmed or ratified and the seller shall at closing be charged an amount equal to the last estimate by the public body of ithe assessment for the improvement. -. N. PERSONAL PROPERTY: The Seller represepts and warrants that all major appliances and machinery included in the sale shall be in good working order and repair as of the date of closing. Buyer may, at his sole expense and on reasonable notice, inspect or cause an inspection to be made of the appliances and equipment involved prior to closing. Any necessary repairs shall be made at the cost of the Seller and, if appropriate, adeljuate funds shall be escrowed at time of closing to effect such repairs. Unless otherwise agreed by the parties, the Buyer shall, by proceeding to closing, be deemed to have accepted the property as is. 0. RISK OF LOSS: If the improvements are damaged by fire or other casualty before delivery of the deed and can be restored to substantially the same condition as now existing within a period of sixty (60) days thereafter, Seller may restore the improvements and the closing date and date of delivery of possession hereinbefore provided shall be extended accordingly. If 'ter fails. to do so, the Buyer shall have the option of (1) taking the property as is, together with insurance proceeds, if any, or (2) cancelling the contract and all depos. will Jrs forthwith returned to the Buyer and the parties shall be released of any further liability hereunder. P. MAINTENANCE: Between the date of the contract and the date of closing, the property, including lawn, shrubbery and pool, if any, shall be maintained by the Seller in the condition as it existed as of the date of the contract, ordinary wear and tear excepted. Q. PROCEEDS OF SALE AND CLOSING PROCEDURE: The Seller shall be entitled to receive the net proceeds of the stile at time of closing, except in cases where mortgagee requires title clearance before disbprsing funds, in which event Seller shall be entitled to payment upon receipt of funds from mortgagee. Payment shall be made in the form of cash, cashier's check, certified check, attorney's trust account check, or real estate broker's trust account check. All professional service fees shall be disbursed in full at the time of closing. R. ATTORNEY FEES AND COSTS: In connectipn with any litigation arising out of this contract, the prevailing party shall be entitled to recover all costs incurred, including reasonable attorney's fees. .� S. DEFAULT: If Buyer fails to perform any of the covenants of this contract, all money paid pursuant to this contract by the Buyer shall be retained by or for the account of the Seller as consideration for the execution of this contract, and as agreed and liquidated damages and in full settlement of any claims for damages. If he Seller fails to perform any of the covenants of this contract, all money paid pursuant tq this contract by the Buyer, at the option of the Buyer, shall be returned to the Buyer on demand, or the Buyer shall have only the right of specific performance. T. CONTRACT NOT RECORDABLE: This contgtct or any reference thereto shall not be recorded in the office of the Clerk of any Circuit Court of the State of Florida. U. PERSONS BOUND: This contract shall bind and benefit the parties hereto, their heirs, personal representatives, successors and assigns (unless provided herein that this contract is not assignable). V. OTHER AGREEMENTS: No agreements or representations, unless incorporated in this contract• shall be binding upon• any of the, parties. Typewritten or hand- written provisions inserted in this form or attached hereto as addendums shall control all printed provisions in conflict therewith. The covenants of this contract shall survive delivery of the deed and possession. W. MAKING TIME OF ESSENCE: Time may be made the essence of this contract by notice in writing to the last known address of the other party or his attorney, stipulating a reasonable time for further performance. AL 7 1982 JUL 71982 F110: - 0 rA440 ANTENNA SITE LEASE. w/ DEPT. OF NATURAL RESOURCES Lease Agreement with The Department of Natural Resources, Florida Marine Patrol for space on communication tower in Hobart Park, is hereby made a part of the Minutes as approved at the Regular Meeting of June 16, 1982. ANTENNA SITE LEASE THIS LEASE AGREEMENT made and entered into this 16th day of June , 1982, by and between the State of Florida, Department of Natural Resources, Florida Marine Patrol, herein- after referred to as Lessee and Indian River County, a political subdivision of the State of Florida, herein referred to as' Lessor. WHEREAS, Lessor owns and operates a communication tower site in Hobart Park, Indian River County, Florida,,and WHEREAS, Lessee desires to rent a portion of Lessor's property for the purpose of installing and operating an antenna system. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED HEREIN, it is agreed as follows; 1. Lessor does hereby lease to Lessee sufficient space on the communication tower located at Hobart Park, Florida to install a DB212-3 antenna with a seven -eighths (7/8") inch foam dielectric helia;x cable together with the right to use a control building for the installation of a one hundred (100) watt Motorola unit to comprise a system utilizing three (3) low band frequencies to wit; 44.96 MHz, 45.00MHz and CTCSS at 203.5 MHz together with an auxiliary 4KW generator and a one hundred and fifty (150) gallon LP gas tank. Lessee takes the facilities "as -is", and Lessor does not warrant that the facility is sufficient for the use intended by Lessee. Any modifications necessary to make the facility usable by the Lessee may only be made after approval by the Lessor and shall be made at the sole expense of Lessee. 2. Thw term of this lease shall be one year commencing with the date th,e last party executes same. Lessee shall have the option in its discretion to renew this lease for an additional one year period on the same terms and conditions contained herein. Said option shall be exercised by Lessee providing Lessor with written notice at least thirty (30) days prior to termination of the initial term. 3. Leasee agrees to pay Lessor the sum of SEVENTY-FIVE ($75.00) DOLLARS per month during the term of this lease and J U L 7 1982 50 349' JUL 71992 renewals thereof. 4. All personal property placed or moved onto the leased premises by the Lessee shall be at the risk of Lessee and Lessor shall not be liable for any damage to said personal prop- erty no matter what the cause. Lessee agrees to hold Lessor harm- less from any an,d all claims, damages, causes of action or liabil- ity of any type whatsoever caused by Lessee's presence on the site. 5. Lessor shall pay all electric charges which may become payable during the term of this lease for electricity used by Lessee on the leased premises. , 6. In the event that Lessee abandons the premises or uses the premises for an unauthorized purpose, then the Lessor may terminate this Lease upon sixty (60) days written notice to Lessee. If the leased site becomes unfit or undesirable for use for Lessee's purposes, Lessee may terminate this lease upon sixty (60) days written notice to Lessor. 7. This lease shall bind the respective parties, assigns and successors. 8. This lease constitutes the entire agreement of the parties hereto aAd shall supersede all prior offers, negotiations and agreements. No revisions of this lease shall be valid unless executed in writing by both parties. 9. Tha Lessee warrants that it is insured and shall remain so insurei3 during the term of this lease in accordance with the Florida Fire Insurance Trust Fund and to Florida Casualty Insurance Risk Management Trust Fund, Chapter 284, Parts I and II, Florida Statutes. 10. Lepsee shall comply with all applicable State, federal and local rules and regulations and laws for the type of activity involved. Lessee also agrees that it's use of the communication tower is limited to use that does not interfere in any way with the current tower occupant's use and further agrees that the signal broadcast by Lessee shall not interfere or degrade signals produced by the other tower users. Lessee shall bear the entire cost of compliance with this section of this agreement. -2- IN KITNESS WHEREOF, the parties hereto have executed this lease for the purposes expressed herein, on the -day and year written above. Witness Witness APPROVED TO FORM AND LEGA SUF ZE By Or. BRANDENBURG ty Attorney J U L 71982 INDIAN RIVER COUNTY BOARD OF COUNTY COMMISSIO ERS By �C= DON C. SCURLOCK, JR. CHAIRMAN Attest: Freda Wright, Cle#k STATE OF FLORIDA, DEPT. OF NATURAL RESOURCES FLORIDA MARINE PATROL By -3- v 11r,t 50 W,F 351 JUL 7 1992 The several bills and accounts against the County having been audited were examined and found to be correct were approved and warrants issued in settlement of same as follows: Treasury Fund Nos. 80749 - 80992 inclusive. Such bills and accounts being on file in the Office of the Clerk of the Circuit Court, the warrants so issued from the respective bonds being listed in the Supplemental Minute Book as provided by the rules of the Legislative Auditor, reference to such record and list so recorded being made -a part of these Minutes. There being no further business, on Motion made, seconded and carried, the Board adjourned at 6:05 o'clock P.M. Attest: Clerk - S2