1/4/1984 - Laserfiche WebLink

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JAN 4 1994 ' .PA071 T DISCUSSION RE ACCEPTANCE OF IRREVOCABLE LETTER OF CREDIT FOR RESERVATION OF UTILITY TAPS (continued from 12/21/83) Attorney Brandenburg reported that this was on the Agenda at the last meeting, but the Board did not take any formal action. The corporation is proposing that the County accept an Irrevocable Letter of Credit in the amount of $650,000 to reserve 2,050 water taps until such time as the assessment is made and the bonds are sold. The amount of the -bonds will include the $650,000 so at that time the County will release the Irrevocable'Letter of Credit and it will be replaced with.cash. This is somewhat of a departure from the County's policy of accepting cash deposits, and r needs the approval of -the Board to allow this to occur. Attorney Brandenburg explained that when the County holds the rate hearings for the new County -wide rate ordinance, a proposed resolution will be on the agenda laying out a main extension policy for the County, setting forth the County policy on all types of extensions. 11 OMB Director Barton noted that in the past when the County accepted cash deposits, the`County benefited from the interest gained in those accounts, unless an agreement was reached at the time of deposit whereby the corporation would receive some interest. If a request for interest was made, the interest was negotiated. However, if no request was made to receive interest, none was paid, and the County received the interest. ;Utilities Director Pinto explained that reservation fees are not actually a deposit and do not pay interest. At that point, there has been a purchase and -the money belongs to the County. Commissioner Wodtke did not have any problem with this - kind of instrument under the circumstances. The $650,000 is subsequently going to be funded through a bond or through revenue which the corporation is generating themselves. 28