1/23/1980 - Laserfiche WebLink

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JAN 2 3 19 80 $oox 42 hGE 58 7 ATTORNEY COLLINS NEXT DISCUSSED THE BENT PINE WATER AND SEWER FRANCHISE. HE NOTED THAT THE FORM OF FRANCHISE WE HAVE BEEN USING ENVISIONS THAT THE COUNTY WILL BE IN A POSITION WITHIN SEVEN YEARS TO TAKE OVER AND PROVIDE SERVICE, AND IF THEY DO, THE ACCUMULATED TAP -ON FEES ACCRUE TO THE COUNTY. IF THE COUNTY ELECTS IN THAT TIME NOT TO SERVE, THEN THE DEVELOPER IS ENTITLED TO THESE TAP -ON FEES. THE ATTORNEY STATED THAT THE BENT PINE SITUATION IS UNUSUAL SINCE THEY ARE SO FAR AWAY FROM WHERE WE ARE HEADING. BECAUSE OF THIS, HE SAT DOWN WITH THE DEVELOPER AND ENGINEER BEINDORF AND TOGETHER THEY HATCHED OUT WHAT HE FELT IS A FAIR COMPROMISE. HE NOTED THAT THE DEVELOPER IS CONCERNED ABOUT HIS ABILITY TO DEPRECIATE THE ASSETS WHICH HE PUTS INTO THE GROUND AND DID NOT WANT AN OPEN-END RIGHT IN THE COUNTY TO TAKE OVER THE SEWER AND WATER AT ANY TIME AD INFINITUM; HE HAD NO OBJECTION, HOWEVER, TO THE COUNTY HAVING THAT RIGHT AS LONG AS IT WAS DEFINED, AND SEVEN YEARS WAS ACCEPTED AS A REASONABLE PERIOD OF TIME. ATTORNEY COLLINS FELT THAT THE COUNTY COULD COME IN AND SERVE IN THE -SEVENTH YEAR, BUT CONTINUED THAT IF WE DIDN'T HAVE THAT ABILITY DURING THE PERIOD OF THE SEVENTH YEAR, IF WE WANTED TO PROTECT THE TAP -ON FEES AND THE RIGHT TO SERVE THE PROJECT, WE WOULD HAVE THE RIGHT TO PURCHASE THE PLANT AT ITS DEPRECIATED VALUE AND TO PURCHASE THE LAND UNDER IT AT MARKET VALUE. OTHERWISE, WE ONLY WOULD HAVE THE RIGHT TO HAVE THE DEVELOPER KEEP ON SERVICING THE PROJECT WITHOUT OUR HAVING ANY OWNERSHIP IN THE LINES WHATSOEVER AND, WE WOULD, IN TURN, RELINQUISH OUR RIGHTS TO THE TAP -ON FEES THAT HAD BEEN ACCUMULATED. HE REITERATED THAT THE COUNTY COULD BUY THE ASSETS AT THEIR DEPRECIATED VALUE PLUS THE LAND AT MARKET VALUE, AND HE WOULD RECOMMEND THIS FORMULA TO THE BOARD. COMMISSIONER LOY EMPHASIZED THAT THIS ARRANGEMENT WOULD PERTAIN JUST TO THIS PARTICULAR FRANCHISE AT THIS TIME. MOTION WAS MADE BY COMMISSIONER LOY TO ADOPT THE RECOMMENDA- TION OF THE ATTORNEY FOR INCLUSION IN THE BENT PINE SEWER AND WATER FRANCHISE, AND SECONDED BY COMMISSIONER LYONS FOR PURPOSES OF DISCUSSION.