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2. EXHIBIT "C". Section XIV, Escrow Charges, pg 11, Item B, states that, "Ten percent (10%) of the gross rates charged and received shall be placed in a second County interest bearing account and accumulated until the balance reaches Thirty Thousand Dollars ($30,000.00). Said funds shall be used as a sinking fund and applied only for repairs and/or replacement of water and sewerage systems by the Corporation as the need arises." The Utility has not established this account since the enactment of the franchise (March 28, 1980). 3. EXHIBIT "D". Section XVI, pg 12, first paragraph states that, "The Corporation shall at all times maintain public liability and property damage insurance in such amounts as shall be required from time to time by the Board in accordance with good business practices...". The Utility was notified by letter on July 10, 1984 and again on March 26, 1986 requesting insurance certificate in the amount of $1,000,000.00 co -naming Indian River County as an additional insured. The Utility never responded. 4. EXHIBIT "E". Section XVII, pg 12, first paragraph states that, "Should the Corporation desire to establish rates and charges or should the Corporation desire to increase any charges heretofore established and approved by the Board, then the Corporation shall notify the Board in writing, setting forth the schedule of rates and charges it proposes. A public hearing shall then be held on such a request...". Bent Pine Utility increased the connection charge in the amount of $244.46 and implemented the increase effective January 20, 1987. A copy of a complaint by Mr. Paul E. Koehler is attached along with our request for Bent Pine to reimburse Mr. Koehler. Bent Pine submitted their response through letters dated March 4, 1987 and March 6, 1987. 5. EXHIBIT "F". Resolution 84-63 was executed by the Board of County Commissioners for the purpose of all water and sewer franchises to provide a, "uniform reporting system so that the County can accurately review the accounting and financial position of the County water and sewer franchises." The Utility was notified by letter on September 19, 1984 and March 26, 1986 to submit the annual report. The Utility responded and stated that they would submit the report during January and February 1985; however, to date, the annual report has not been filed. The Utility did not respond to the letter dated March 26, 1986. 6. EXHIBIT "G". franchisee to explain h money that exceeds the resolution. The Utility 17, 1987. RECOMMENDATION Letter dated February 17, 1987 requesting the ow they intend to rebate "the customers the authorized rates outlined in the franchise did not respond to the letter dated February Utility staff recommends the Board of County Commissioners to take the following action: 1. At the close of this public hearing, the franchisee- shall be "on notice" of all deficiencies and these deficiencies shall be brought up to date to satisfy the franchise requirements on or before September 14, 1987. 2. Extend the current franchise for a period of 7 years and require the passing of an approved resolution or by putting in the existing franchise itself that a 6% franchise fee be added to the utility bill to appear as a separate item. This is a pass-thru increase to their existing rate structure and will bring the franchise in line with all other franchises currently being issued by the County, with the 6% franchise fee that the County imposes on its own customers and City customers within County limits. 3. Interest shall be paid on the Repairs and/or Replacement account for the past 7 years that it would have earned if the account had been established, as required in Section XIV, Escrow Charges. JUL 14 1937 43 BUCK 68 PAGE 795