The Barefoot Bay Water and Sewer District Governing Board of Brevard County, Florida, met in regular session on December 7, 1999, at 12:02 p.m. in the Government Center Commission Room, Building C, 2725 Judge Fran Jamieson Way, Viera, Florida. Present were: Chairman Nancy Higgs, Commissioners Truman Scarborough, Randy O'Brien, Sue Carlson, and Helen Voltz, County Manager Tom Jenkins, and County Attorney Scott Knox.
BOND RESOLUTION, INDENTURE OF TRUST, CONTINUING DISCLOSURE AGREEMENT, TRANSFER, ASSIGNMENT AND ASSUMPTION AGREEMENT, WARRANTY DEED, BILL OF SALE, AND STANDBY GUARANTY AGREEMENT WITH AMBAC ASSURANCE CORPORATION, RE: ACQUISITION OF BAREFOOT BAY WATER AND SEWER SYSTEM
Water Resources Director Richard Martens advised the actions taken by the Board today will finalize the financing and acquisition of facilities the County has been discussing over the past six months.
Motion by Commissioner Voltz, seconded by Commissioner Carlson, to adopt Resolution of Barefoot Bay Water and Sewer District pertaining to the acquisition of the Barefoot Bay Utility System (The "System") from Florida Governmental Utility Authority ("GUA"); approving the acquisition of the System from GUA; authorizing the issuance of Barefoot Bay Water and Sewer District Utility Revenue Bonds, Series 2000, in an aggregate principal amount of $17,135,000 for the purpose of acquiring the System and financing certain improvements thereto (The "Project"); providing that such Revenue Bonds shall not constitute a debt, liability or obligation of the District, Brevard County, or the State of Florida or any political subdivision thereof, but shall be payable solely from the revenues herein provided; approving the form of and, as required, authorizing the execution and delivery of an Indenture of Trust, a Continuing Disclosure Agreement, a Transfer, Assignment and Assumption Agreement, a Warranty Deed, a Bill of Sale, a Standby Guaranty Agreement, an Interlocal Agreement and other related documents; appointing Suntrust Bank, Central Florida, National Association, as initial Bond Trustee under the Indenture of Trust; approving and authorizing the execution and delivery of certain other documents required in connection with the foregoing; and providing certain other details in connection therewith. Motion carried and ordered unanimously.
INTERLOCAL AGREEMENT WITH BREVARD COUNTY BOARD OF COUNTY COMMISSIONERS, RE: OPERATION, MAINTENANCE, AND ADMINISTRATION OF BAREFOOT BAY WATER AND SEWER SYSTEM
Motion by Commissioner Carlson, seconded by Commissioner O'Brien, to execute Interlocal Agreement with the Brevard County Board of County Commissioners for operation, maintenance, and administration of the Barefoot Bay Water and Sewer System.
INTERLOCAL AGREEMENT WITH BREVARD COUNTY BOARD OF COUNTY COMMISSIONERS, RE: OPERATION, MAINTENANCE, AND ADMINISTRATION OF BAREFOOT BAY WATER AND SEWER SYSTEM
Commissioner Voltz stated the Board is taking away the authority of the people who are currently running the system, and the Board is going to be handling it. She inquired are the individuals employees of the Board right now or are they going to be.
Mr. Martens advised that issue will be brought back to the Board in January, 2000; and operation of the system will continue under a Contract with the private contractor through May 31, 2000.
Chairman Higgs called for a vote on the motion. Motion carried and ordered unanimously.
RESOLUTION, RE: ESTABLISHING STANDARD OPERATING PROCEDURES FOR BAREFOOT BAY WATER AND SEWER SYSTEM
Motion by Commissioner Voltz, seconded by Commissioner Carlson, to adopt Resolution of the Board of Directors of the Barefoot Bay Water and Sewer District adopting standard procedures within the Barefoot Bay Utility System located in Brevard County, Florida; providing an effective date. Motion carried and ordered unanimously.
PUBLIC HEARING, RE: RESOLUTION ESTABLISHING RATES, FEES, AND CHARGES FOR BAREFOOT BAY WATER AND SEWER SYSTEM
Chairman Higgs called for the public hearing to consider a resolution establishing rates, fees, and charges for Barefoot Bay Water and Sewer System.
Chairman Higgs passed the gavel to Vice Chairman Randy O'Brien.
Chairman Higgs advised there are two options for the Board; the Government Utility Authority in November, 1999, went forward with indexing the rates based on the various indicators, deflators, and inflation; there was a very small rate increase; in talking with Mr. Martens, the .91% increase does not seem necessary to continue, once the Board is the owner/operator, to operate the utility in a sound condition; and she would want to move that the Board adopt the rates in effect prior to November 1, 1999, which is Option 2.
Commissioner Voltz inquired how did the rates compare with the rates the Board is currently charging. Mr. Martens advised the rates are different; the customers in the Barefoot Bay system use approximately half the water that the customers Countywide use; they have a larger
PUBLIC HEARING, RE: RESOLUTION ESTABLISHING RATES, FEES, AND CHARGES FOR BAREFOOT BAY WATER AND SEWER SYSTEM
base charge than the County; the County has a $13.80 base charge on the sewer system; and Barefoot Bay is approximately $21.00 and their water system has a different base charge. He stated the average customer has a little higher water and sewer bill than Brevard County customers do for approximately half the water usage. Commissioner Voltz stated if the Board is going to take over and charge, it needs to look at equalizing the rates; it is unfair for them to pay double when they use half the water; and she is not going to support the rate structure.
Commissioner Higgs stated the rate structure proposed is necessary to operate the system; her recommendation is to keep the rates that were in effect before November 1, 1999; the County has a significant bonding in order to be able to acquire it; and as it gets into operation fully after February, 2000, it can start to look at all those issues.
County Manager Tom Jenkins advised if the Board does not keep the same rates now, it could have an effect on the other rates; it cannot change those rates except at the budget process; and if it wants to do something with the rates, the time to do it is at next year's budget.
Vice Chairman O'Brien advised the Board did not promise the citizens of Barefoot Bay a roll- back of the rates; it indicated it would try to accomplish what it could for them; and if it reduces rates now back to November 1, 1999, two years from now the Board will have to hit Barefoot Bay again with a higher rate increase than anticipated, plus it is not putting anything aside for maintenance of the system. He stated he wants to see a progressive rate schedule that would begin immediately.
Commissioner Higgs stated she feels comfortable having looked at the numbers over the last couple of years; and the rates she is recommending in Option 2 are adequate to carry the system and address the maintenance needs.
Mr. Jenkins stated Mr. Martens will do a rate forecast; he has a multi-year plan for his existing larger systems; and he will do the same for the new acquisition.
Commissioner Scarborough stated Mr. Martens has done a wonderful job on an extremely complex situation; the people in Barefoot Bay will be well served by the County getting involved in this; the County has not chosen to integrate the systems; the rates are not going to subsidize or be subsidized by the system; and Commissioner O'Brien's issue goes to does the County increase rates this year or how does it impact subsequent year rates. He noted Mr. Martens indicated to him if the Board took the action Commissioner Higgs suggested and did it this year, there would probably not be an impact; but if it continues to do it for a couple of years, the impact would be as Commissioner O'Brien has explained and there is a multiple effect of not having rate increases; and this issue has been carefully considered and weighed by each Commissioner.
PUBLIC HEARING, RE: RESOLUTION ESTABLISHING RATES, FEES, AND CHARGES FOR BAREFOOT BAY WATER AND SEWER SYSTEM
Commissioner Voltz stated the County talks about increasing rates; and inquired why not look at decreasing rates.
There being no further comments heard, motion was made by Commissioner Higgs, seconded by Commissioner Scarborough, to approve Option 2 to adopt rates in effect prior to November 1, 1999, as listed in Attachment #2; and adopt Resolution of the Board of Directors of the Barefoot Bay Water and Sewer District adopting rates, fees, and charges within the Barefoot Bay Utility System located in Brevard County, Florida; providing that unpaid fees constitute liens; providing for no free service; providing an effective date. Motion carried and ordered; Commissioners O'Brien and Voltz voted nay.
Upon motion and vote, the meeting adjourned at 12:19 p.m.
ATTEST:
NANCY N. HIGGS, CHAIRMAN
BAREFOOT BAY WATER AND SEWER
DISTRICT GOVERNING BOARD
BREVARD COUNTY, FLORIDA
SANDY CRAWFORD, CLERK
(S E A L)