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COMMISSIONER SCHMUCKER NOTED THAT THEY SOLD A GREAT MANY LOTS <br />IN PREVIOUS YEARS AND ASKED IF ALL THOSE SOLD WERE FURNISHED WATER AND <br />SEWER. <br />MR. MOZIAN SAID HE BELIEVED THAT ALL THE LOTS ARE NOT ON THE <br />SEWER SYSTEM; SOME HAVE SEPTIC TANKS; SOME ARE SOLD WITH A COMMITMENT <br />FOR WATER; AND SOME ARE NOT. <br />ATTORNEY ALLEN INFORMED THE BOARD THAT THE INITIAL SALES PROGRAM <br />WAS SELLING ON WELL AND SEPTIC TANK, BUT IN THE EARLY 1970'S, THERE WAS <br />CONCERN ABOUT THIS PRACTICE BY THE STATE DEPARTMENT OF HEALTH, AND THE <br />COMPANY THEN ADOPTED A SALES PROGRAM OF SELLING ALL NEW PLATS ON CENTRAL <br />WATER AND SEWER. <br />COMMISSIONER SCHMUCKER ASKED IF THE WATER AND SEWER WAS <br />FURNISHED AS A PART OF THE LOT PRICE OR IF A SEPARATE CHARGE WAS TO <br />BE MADE WHEN THEY ACTUALLY CONNECT TO THE SYSTEM. <br />ATTORNEY ALLEN STATED THAT IT IS A SEPARATE $1,000. CHARGE <br />WHICH COMMENCES THREE YEARS AFTER THE STARTING DATE OF THE CONTRACT. <br />THOSE FUNDS ARE PAID IN CONJUNCTION WITH THE PURCHASE PRICE, AND BY THE <br />p END'OF THE 10 YEAR TERM, THE PURCHASER WILL HAVE PAID HIS FULL WATER AND <br />SEWER FEE. THESE FUNDS ARE KEPT IN ESCROW FOR THE PURPOSE, AND IF THERE <br />IS AN INCREASE, THE PURCHASER WOULD BE OBLIGATED FOR THE EXTRA. HE NOTED <br />THAT THIS CHARGE WAS BASED ON AN ESTIMATE ON INFLATIONARY TENDENCIES. <br />COMMISSIONER SCHMUCKER ASKED WHAT HAPPENS IF SOMEONE BUYS -A <br />LOT FOR CASH AND WANTS TO BUILD. <br />MR. MOZIAN ANSWERED THAT HE WOULD PAY THE PRESENT CONNECTION <br />CHARGES AND ALSO NOTED THAT IF A CUSTOMER HAD PAID THE ENTIRE $1,000. <br />CHARGE INTO ESCROW, THEY WOULD GIVE HIM THE OVERAGE BACK. <br />ATTORNEY COLLINS ASKED WHERE THEY GET THE AUTHORITY TO CHARGE <br />THIS EXTRA COST. <br />,ATTORNEY ALLEN POINTED OUT THAT IT IS GENERAL DEVELOPMENT <br />CORPORATION AND NOT THE UTILITY COMPANY THAT IS MAKING THIS CHARGE, AND <br />THEY DID NOT FEEL THE COUNTY WAS REGULATING THAT TYPE OF CHARGE. THE <br />ACTUAL CHARGE TO BE MADE AT TIME OF CONNECTION IS REGULATED, AND THEY <br />HAVE NEVER EXCEEDED THE RATES APPROVED UNDER THE FRANCHISE. GDC IS MAKING <br />AW OBLIGATION THAT WATER AND SEWER SERVICE WILL BE PROVIDED. <br />22 <br />SEP 2 11977 <br />