12/11/1979 - Laserfiche WebLink

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r DEC 111979 Bw 4Z PAGE 279 INSTALL A 4" MAIN VS. A 3" WOULD BE THE SAME MANY YEARS AGO, I.E. 50% MORE FOR 4" OVER 3". THEY USED THE INSTALLATION COST FOR 1976. THE COLUMN MARKED "FACTOR" IS THE ARITHMETIC DIVISION, AND ALL THIS DOES IS ESTABLISH A WEIGHTED DIFFERENCE IN THE COST TO INSTALL EACH SIZE MAIN. THE NEXT COLUMN IS THE ACTUAL FOOTAGE AT THE END OF 1978 BY SIZE, AND THE LAST COLUMN "WEIGHTED FOOTAGE" IS MULTIPLICATION OF THE FACTOR TIMES THE FOOTAGE, OR $123,000. COMMISSIONER LYONS ASKED IF THAT NUMBER IS AN ADDITION OF ALL THE COSTS OF MAINS FROM THE YEAR ONE WITHOUT DEPRECIATION, AND MR. MOSIAN STATED THAT WAS CORRECT. THEY HAVE SET $2.96 AS THE AVERAGE COST OF A 4" MAIN, AND BY APPLYING THE FACTOR TO THE $2.961 THEY COME UP WITH THE AVERAGE FOR THE OTHER SIZES. THE PURPOSE OF THE WHOLE EXHIBIT IS TO EXPLAIN HOW THEY FACTOR TO ARRIVE AT A COST FOR THE VARIOUS SIZES. MR. MOSIAN INFORMED THE BOARD THAT THERE WAS A MORATORIUM UNTIL THE SEWER TREATMENT PLANT WAS EXPANDED. THERE WERE NO CONNECTIONS IN 1976; THERE WERE SOME IN 1977. HE NOTED THAT THE PURPOSE OF THE BLUE BOOK IS TO DETERMINE WHAT PLANT IS HELD FOR FUTURE USE BECAUSE THEY STRIVE TO ELIMINATE FROM THE COST WHAT WILL SERVE CUSTOMERS IN THE FUTURE. HE THEN DISCUSSED CONNECTION CHARGES AND NOTED THAT THE CHARGE IS USED TO DEFRAY THE COST OF THE FACILITY. THEY COLLECT THOSE CHARGES AT THE TIME OF CONNECTION AND NOT BEFORE. HE EXPLAINED THAT WHEN A CUSTOMER PAYS FOR HIS LOT, HE CAN PUT MONEY INTO A SEPARATE ESCROW ACCOUNT FOR WATER AND SEWER, AND THIS MONEY MAY NOT BE REMOVED UNTIL CERTAIN CONDITIONS ARE MET. TO DATE THESE ESCROW FUNDS HAVE NOT BEEN TOUCHED. THIS ESCROW ACCOUNT IS NOT GENERAL DEVELOPMENT UTILITIES ESCROW - AND IN A WAY IT IS NOT EVEN GENERAL DEVELOPMENT'S; IT IS SHOWN ON THE BOOKS BOTH AS AN ASSET AND A LIABILITY. CHAIRMAN WODTKE ASKED IF GENERAL DEVELOPMENT HAS AN OBLIGA- TION TO HONOR THOSE COMMITMENTS WHENEVER THE CUSTOMER WANTS TO BUILD, AND MR. MOSIAN STATED THAT GENERAL DEVELOPMENT WILL MEET ANY COMMIT- MENTS IT HAS, AND HE FELT THEIR TRACK RECORD IS EXCEPTIONALLY GOOD. HE WANTED TO MAKE IT CLEAR THAT THEY DO NOT HAVE ACCESS TO THOSE FUNDS AND WILL NOT SEE THEM UNTIL THERE IS SOME ACTIVITY IN THAT AREA.