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FEB 7 1989 <br />Bog 76 PAGE lb <br />Utilities Department has been talking to as many of the private <br />utilities as possible to negotiate some method of taking them out <br />of service and incorporating them into the County utility system. <br />Director Pinto explained that there are certain requirements <br />under State Stat. 125.340 that we must meet when doing a negoti- <br />ated purchase of a utility. In this particular case, we started <br />at a sum of $150,000 and negotiated down to $65,000 but some <br />terms of the contract are still under negotiation. If the Board <br />approves the purchase at $65,000, staff will then finalize the <br />agreements and bring them back to the next regular meeting. <br />Director Pinto then proceeded to review in detail the <br />information required by statute, all of which has been provided; <br />i.e., most recent available income expense statement from the <br />utility; most recent available balance sheet; a statement of the <br />existing rate base of the utility; and an inspection of the <br />system, which was done by staff. Information regarding the <br />reasonableness of the purchase, the sale price and the terms, <br />what is required to improve the system, what the assets are, <br />etc., is also required, and Director Pinto advised that all that <br />information is available, and staff believes the $65,000 purchase <br />price is reasonable for both the owners and the county. In <br />regard to the impact of the sale on existing customers, they did <br />not see any negative impact, but rather feel it is positive in <br />just about every way. There will be a surcharge of approximately <br />$11.99 to cover the purchase price, which still will mean a $3.71 <br />monthly reduction in the rates, and at the same time, the <br />purchase will improve the quality and dependability of service <br />immensely. As to the ability and willingness of the investor to <br />make any additional investment required, Mr. Pinto noted that <br />once the County takes over, it becomes a county liability; the <br />system, therefore, necessarily will be repaired as required, and <br />we will be working from a customer base of some 15,000 rather <br />than just 100. Director Pinto informed the Board that we will <br />have to spend approximately $35,000 immediately to make some <br />16 <br />