11/4/1981 - Laserfiche WebLink

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r NO V 4 1991 Bom 48 FACE 94 4 Commissioner Wodtke asked if the people purchasing some years ago who have not already connected to the system were notified of this hearing, and Mr. Fancher stated that they were not -.because it is stated in their contract that they will pay the current rate. In.further discussion, it was noted that there is no provision in the General Development franchise for the County to ever take over the facility. Commissioner Scurlock commented that he has done a great deal of work recently on franchise arrangements and we have included in our new franchise agreements significant elements to protect the county. He noted that an escrow fund has been worked out with Hutchinson Utilities and provision for annual inspection at which time the escrow could be raised or lowered. He discussed possible renegotiation of the General Development franchise. Mr. Fancher informed the Board that the General Development Utilities entity has approximately 90 million in assets, approximately 1h to 2 million of which is in the Vero Shores and Highlands Division. They have about 12 million in annual revenues, but the Vero Shores and Highlands Division because -of the present rate structure does operate at a considerable deficit - in 1980 they had a deficit of approximately $100,000 and $30,000 was spent on maintenance of the system. The maintenance amount has increased each year as the system grows larger and older. Currently the shareholders are subsidizing this system. Commissioner Scurlock noted the County wants to have a system with an adequate rate structure and not one that is subsidized. He expressed concern with the overall concept, especially in regard to having no escrow fund to provide for when they do not continue to subsidize the system. Some discussion ensued as to a possible figure for a sinking fund, and Chairman Lyons noted that Ms. Roen stated they were willing to set a performance bond of $100,000. a _ =5