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other method, and failing that we either have to put them out of <br />business and offer the territory to someone else or issue them a <br />new franchise which they may not accept or the amended franchise <br />which we are giving. Considering the history of this franchise, <br />staff does not see any benefit in fighting the issue of giving <br />them our new standard franchise. It doesn't work in this <br />situation because of their contractual rights from the past. <br />This utility has claimed a property right in its assets and wants <br />to make money on the deal unlike our normal developer utility, <br />which generally is happy to get out of the business and turn it <br />over to us. <br />Commissioner Eggert asked if we grant this recommendation <br />and on September 14th, everything isn't satisfied, are we then <br />into termination. <br />Attorney Vitunac confirmed we would be, but then they would <br />have had every opportunity to comply and could not say we were <br />unfair to them. <br />Commissioner Bird felt we all agreed the original franchise <br />was poorly worded as far as term is concerned, but it seems there <br />is no question there are provisions in that franchise they have <br />failed to comply with. <br />Director Pinto agreed and noted that when we look at the <br />severity of the violations of a franchise, the very first thing <br />we are concerned about is the health and welfare of the people in <br />the service area. Lack of compliance with the administrative <br />type thing is secondary. He felt it would be too severe to <br />remove the franchise based on this hearing without giving them <br />another opportunity to bring everything in line administratively. <br />If they are not going to do that or feel they do not have to, <br />then we will address that as a pure violation of the contract and <br />go on from there. <br />Chairman Scurlock quoted from the Board Minutes of August 6, <br />1986, as follows: <br />47 BOOK 0 FAGS 799 <br />JUL 141 1907 <br />s <br />