2/8/1984 - Laserfiche WebLink

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pr - FEB 8 198 to the County when it takes over the system, he does not understand the provision whereby the escrowed impact fees shall become part of the R&R Fund in the event the County does not exercise its option to purchase the facility. Attorney Johnston explained that his point is that there is no time limit specified in regard to the County exercising its option to purchase so they really do not know when this is supposed to take effect, and he did not see the reason for co -mingling the impact funds with the R&R funds. Director Pinto did not regard this as a co -mingling of unrelated funds since impact fees and R&R funds end up being used very much the same. When the County does make a decision to buy the system, he did not see that_ the impact fees should vest to the utility as a profit because the County still would be faced sooner or later with replacing the system; the impact fees would cover that expense, and the R&R fund would be the place for that money. He felt this actually would be to the utility's' advantage becauge this provision allows the transfer of. the impact fees into an account where the utility can use the funds for R&R or expansion. If they wished to lock these funds up in another escrow account forever where they could not be touched, they could do so, but he would not recommend it. Attorney Johnston stated that the point he is making is that the R&R account is going to be charging 2h% interest of the gross charges per month with an initial contribution of $2,000 with the interest continuing to be added to this fund until it reaches $1.0,000. Thereafter that 2h% will continue to accumulate in the R&R fund. He believed the main reason for this fund was to alleviate the County having to dip into their coffers to make any repairs, but even if the system is in good repair, the County still apparently gets these fees, and he felt this is more or less a double dipping because the County already would be getting the M - 1 J 44