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HomeMy WebLinkAbout1982-05940 e• a 0 c 0 i U a W m O W 0 f e W W F 0 W W Z 0 1 f' RESOLUTION NO. 82-59 gE IT �ESOLVED, by the Board of County Commissioners of Indian River County, Florida: i 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, word 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." (c) "Corporation" is the Grantee of rights under this franchise, to wit: North Beach Water Company, a Florida corporation. (d) "Board" is the Board of County Commissioners of the County. (e) "Person" is any person, firm, partnership, association,i 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, 1 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 (i) "Service" means supplying to a user the distribution of water and the treatment thereof. (j) "Hookup and/or Connection" is the connecting of the water system in order to utilize potential user's property to the Corporation's services. IISECTION III There is hereby granted by the County to the Corporation the o exclusive franchise, right and privilege to erect, construct, 0 LL operate and maintain a water system as herein defined within the U described territory as herein provided and for these purposes to m 0 W sell and distribute treated water within the territory, and or o these purposes to establish the necessary facilities and equipment f ° and to lay and maintain the water system along under and across o the public alleys, streets, roads, highway and other public places W of the County; provided, however, that the County reserves the o 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 (40%) 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 IIsame manner as provided for in Section XIX hereof. Corporation is 2 u • unc a 0 rc 0 4 0 a W 0 a W N 0 F M C W 0 0 W z 0 granted the non-exclusive franchise to distribute untreated water within the franchise territory. SECTION IV The territory in which this franchise shall be applicable is all that part of Indian River County, Florida, located within the 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 1 & 2, Section 35, Township 31, Range 39. All Governments Lots 1 & 2, Section 36, Township 31, Range 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 71 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 MD •® I d G G 0 4 2 u a w m 0 W 0 f a Q W 0 tL W 0 be expanded to include additional lands adjacent to and/or in the vicinity of the franchise territory described above. SECTION V 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. 4 40 • •• I� e 4 0 0 0 u a W M 0 W 0 0 s a m W m 0 4 W 0 Upon the completion of all construction of the water plant 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. 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 water delivered and sold shall at all times be and remain not inferior to the quality standards for 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 Corp^,=tivn shall at any time, when requested by a consumer, make a test of the accuracy of any meter; prior, however, to any test being made by 01 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 0 • 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 n such rules, regulations, terms and conditions covering the conduct 0 of its business as shall be reasonably necessary to enable the aCorporation to exercise its rights and perform its obligations m Wunder this franchise and to furnish service to each and all of its o0 consumers; provided, however, that such rules, regulations, terms W and conditions shall not be in conflict with the provisions W to hereof, applicable County ordinances or with the laws of the State 4 i of Florida, and all of the same shall be subject to the approval 0 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 and a Developer seeking service pursuant hereto cannot agree upon 6 40 • 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, 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 7 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 i� 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 e shall pay to the Corporation in advance, its cost of removal and 0 relocation of the removed facilities in order to continue its i Wservice as theretofore existing, or the County shall retain an m Weasement not less than ten (10) feet in width for the benefit of othe Corporation and its facilities. s e SECTION X rc oThe Corporation shall provide service within the 4 i franchise territory on a non-discriminatory basis as if it were 0 regulated under Florida Statute Chapter 367 (1980), except to the IIextent 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 8 " 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 I 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. o (c) The Corporation shall not be required to furnish, LL supply, install and make available its public water to any person awithin the territory as hereinbefore setforth unless unreserved same may be done at Wcapacity is available and the such a cost to the Corporation as shall make the addition proposed financially ° feasible. Financially feasible shall mean that a fair and o reasonable rate of return shall be realized by the Corporation for Z 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 II vendee, assignee or lessee has filed with the Board an instrument IIin writing reciting the fact of such transfer and accepting the 9 40 do e• 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 and/or assignable until notice or request for transfer and a assignment shall be given by the Corporation to the Board in m W writing accompanied by a request from the proposed transferee, o which application shall contain information concerning the F m financial status and other qualifications of the proposed W o0 transferee and such other information as the Board may require. A Z public 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 II connection is made. 10 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 Charges Fixed Charge Meter Size Charge 5/8" $ 14.45 1" 36.12 1 z" 72.23 2" 115.56 3" 231.12 4" 361.13 6" 722.25 Consumption Charge $2.25 per 1,000 Gallons 11 II. Connection Charge Meter Size Charge 5/811 $ 1,100.00 l„ 2,750.00 lk„ 5,500.00 211 8,800.00 311 17,600.00 411 27,500.00 6„ 55,000.00 In determining meter size, the Corporation shall not perinit 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 a 4 facilities and their degree of treatment sophistication as I W prescribed by the Department of Health and Rehabilitative Services Wand the Department of Environmental Regulation or other body o having jurisdiction over the matter. Without Board approval the 2 " connection charges set forth herein shall be escalated based upon 1. 0 increases in utility construction costs as evidenced by the Z 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 11 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 3% 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 II 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 CPA the 3% Franchise 12 C-3 do ®o Fee has been properly determined, collected and remitted to County, and further that the 2' % 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 o amount equal to the original cost and costs associated with capital additions and expansions less the following: W (a) depreciation at 3�% annually applied against the W total costs of plant and system, capital additions and expansions 0 funded by the Corporation, excluding costs funded by contributions t m in aid of construction received from Developers requesting service g to properties other than those properties described on Exhibit A. LL i 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 utilized by Corporation under License 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 o and necessary to the operation of the system, and County shall own 0 LL all lines to the point of delivery of service. U (b) Deliver and transfer all existing engineering and W survey documents, plans, etc. data, plans or other such as the oCounty may reasonably request. s m (5) All instruments of conveyance, transfer or assignment shall be in usual and customary form with warranties of title and o LL W z warranties against encumbrances. (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. Two and one-half percent (23W of the gross receipts of the C'cirnn_rat_inn aer v7,d and collected from monthly .crv—, c charges shall be placed in an interest bearing Repair and Replacement account for purposes of maintenance of the capital assets of the 3.4 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 n name of the Corporation and Corporation shall furnish County with 0 u quarterly reports reflecting additions to and the disbursements i Wfrom said account. M ° W (e) County shall inspect the plant and system semi-annually to insure the Corporation is maintaining the plant o F a and system in accordance with the quality standards established W W 00 herein. W W (f) The Corporation may make such additional. 0 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 IIsaid account. The burden of proving inadequacy of the account 15 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 liabili�y 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 o If any written complaint is filed with the Board by any B LL persons serviced by the Corporation under this franchise, the i WBoard shall first determine whether reasonable cause exists with m Wrespect to said complaint. If the Board finds that reasonable o cause does exist, the Board shall so notify the Corporation and I " request the Corporation to satisfy or remedy such complaint. If w W o the Corporation fails, within a reasonable time, to satisfy or LL z remedy such complaint or objection the Board may review same 0 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 publication of such 16 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 a ° circumstances exist to determine the time during which such k ° ` construction shall be done. i U Q SECTION XXI 0 cc If the Corporation fails or refuses to timely and faithfully keep, perform and abide by each and all of the terms and m W conditions of this franchise, then the Board shall. give the ° Corporation written notice of such deficiencies or defaults and a Vi o 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. 17 Nothing in this franchise shall prevent landowners from exercising their vested rights or privileges as setfor.th 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•:, By CY�ai n Board of County Commissioners Attest: % Approved as to form Clerk and legal�lffiG!Pn B G 3randenbur J 18 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—Vero Beach, Indian River County, Florida, this day of a 1982• WITNESS: v NORTH BEACH W TER COMPANY By 4�'s a P ident a 0 o STATE OF FLORIDA 4 COUNTY OF INDIAN RIVER I W I HEREBY CERTIFY that on this day, before me, an officer duly m W authorized in the State and County��ff esaid/ /t� take o acknowledgments, personally appeared.` G /``� IVI a as President of NORTH BEACH WATER COMPANY, a Florida corporation, rc F o and he acknowledged before me that he executed the foregoing 4 W instrument for the uses and purposes therein expressed. 0 WITNESS my handand official, eal �in the State and County aforesaid this y 2`//da of L , 1982. II of ry Pic, State of Florida at Large My Commission expires: rmban r. Nnt:ry Publc_, Strata et Largo' M? C� uniscion [;q,:�_; 1G5. 13, 19 ;Zi 19 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, Flbrida. 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. From said point run S 24 degrees 54 minutes, 33 seconds E along 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 right- of-way line to State Road AlA a distance of 438.80 feet; thence run N 69 degrees 54 minutes 33 seconds W a distance of 620.56 feet; thence run N 65 degrees 05 minutes 27 seconds E a distance c 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 describe 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. EXHIBIT "A" BAYTREE INVESTMENTS, LTD. a Florida Limited Partnership 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 A]A. 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. F.YMTRTT "A" LICENSE AGREEMENT '1111S 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. 82-59 ; and " WHEREAS, Licensor is the owner of fee siwiple title in and to that certain real property described on Exhibit A attached hereto U which property will comprise the reverse osmosis water plant site m Wand access road --way to same; and 6 WHEREAS, Licensor has agreed to grant a license to Licensee 0 i granting Licensee the right to use the real property of Licensor a 0 pursuant to the terms and provisions set forth below. 0 U IT IS THEREFORE AGREED AS FOLLOWS: Z 0 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 (15%) of the market value of the property as determined by MAI appraisal, said 1 40 of 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 wager 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 i 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 ab • •i a 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 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. Notary Public, State of Florida at Large (NOTARY SEAL) My Commission expires: 3 STATE OF FLORIDA ® COUNTY OF INDIAN RIVER I HEREBY CERTIFY that on this day, before me, an officer 40 duly authorized in the State and County aforesaid to take acknowledgments, personally appeared 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. of Not Public, State of Florida at Large (NOTARY SEAL) My Commission expires: IISTATE OF FLORIDA COUNTY OF INDIAN RIVER I HEREBY CERTIFY that on this day, before me, an officer n i duly authorized in the State and County aforesaid to take LL acknowledgments, personally appeared i of VERO BEACH ASSOCIATES, LTD., a Florida limited partnership, W and he acknowledged before me that he executed the foregoing M instrument for the uses and purposes therein expressed. 0 WITNESS my hand and official seal in the State and County V) aforesaid this day of 1982. 0 F m a w F 0 0 ' Notary Public, State of Florida at Large W (NOTARY SEAL) o My Commission expires: 4