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HomeMy WebLinkAbout1977-082®® RESOLUTION NO, 77-82 ® WHEREAS, for a number of years URBAN DEVELOPMENT UTILITIES, INC., hereinafter referred to as "U.D.U,", has operated a private ® Sewer and Water Franchise in violation of State and Federal Regulations; and WHEREAS, currently U.D.U. is unable to provide palatable water in its Franchise area due to poor source wells, inadequate i treatment facilities and deteriorated distribution lines; and WHEREAS, the sewer treatment plant and necessary collection lines are presently in such a deplorable state of disrepair that effluent remains uncollected and untreated for lengthy periods of time; and WHEREAS, the Farmers Home Administration originally funded the construction of both water and sewer systems and has kept close ties with U.D.U. since the facilities were completed; and WHEREAS, despite repeated requests from state and county government, the Farmers Home Administration and U.D,U, have failed to up -grade the water and sewer facilities to acceptable standards; and WHEREAS, on January 16, 1976 Indian River County entered into a contract with U.D.U. and Farmers Home Administration, which contract provided an up -grading of sewer and water services to the U.D.U. franchise area; and WHEREAS, U.D.U. and Farmers Home Administration have defaulted under the terms of the January 16, 1976 contract and it is clear to the Board of County Commissioners of Indian River County, Florida that U.D.U. and the Farmers Home Administration will not, in the future, perform their obligations under the contract; WHEREAS, there remains an outstanding obligation from U.D.U. to Farmers Home Administration in the amount of approximately FIVE HUNDRED THOUSAND ($500,000.00) DOLLARS, which obligation can never reasonably be retired from the sewer and water revenues received by U.D.U.; and • db WHEREAS, additional funding is necessary to up -grade the sewer system and water system in their entirety before palatable water which Indian River County shall provide, can be run through the water distribution system; and WHEREAS, the Board of County Commissioners of Indian River County, Florida have committed to provide to the U,D,U, Franchise area sufficient treated water from the Vero Beach Water Treatment Plant to meet the needs of the U.D.U. Franchise customers; and WHEREAS, it is evident that the customers in the U.D,U. Franchise area cannot pay rates sufficient to retire the approximately FIVE HUNDRED THOUSAND ($500,000.00) DOLLAR debt to Farmers Home Administration, the costs of up -grading the new system, and the costs of purchasing water as distributed; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA, that, in an effort to solve the problems described within this Resolution, that Indian River County will provide to people of Gifford living within the U.D.U. Franchise area necessary water and sewer servie.Fs at reasonab?p rates, conditioned upon U.D.U. and the Farmers Home Administration up -grading the existing sewer and water facilities to meet State and Federal standards, and conveying said improved facilities to Indian River County, free and clear of all debts and encumbrances appertaining to the assets conveyed; and BE IT FURTHER RESOLVED, that it is the clear intent of the Board of County Commissioners of Indian River County Florida to assume the responsibility of providing the U.D'A Franchise area and future customers with both water and sewer services meeting State and Federal standards upon the Board's acceptance of the up -graded water and sewer systems as conveyed by U.D.U. and the Farmers Home Administration. This Resolution shall become effective as of the 10th day of August 1977. BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA BY C. i iam U, woorkeNrP, ,ai.rman