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L 111989 989 BOOK 77 P,�GE 283! <br />Terry Pinto, Director of Utility Services, explained that <br />the Lake Delores utility system is located within the City of <br />Sebastian and falls under the terms of the franchise issued by <br />that city. Their franchises are written a little bit differently <br />than ours with regard to provisions for the purchase of the <br />utility. The purchase price is based on the value of the system <br />itself. This facility has changed hands and names several times. <br />It went into bankruptcy, and the present owner, Nelson Hyatt, got <br />back all the assets through bankruptcy. Over the past 6 months <br />we have negotiated a method of purchasing this system that would <br />not affect any of the existing customers of the county utility <br />system in a negative way and would be something that the present <br />customers within the Lake Delores system could live with. The <br />total potential build -out of the mobile home park is 650 units, <br />but there are only 100 units at present. State statute requires <br />us to go through various steps to analyze the value and the <br />assets of a utility and what it would do to our system if we <br />purchase it and bring it into our system. <br />Director Pinto emphasized that because of its location, the <br />acquisition of this utility is very crucial to the planning for <br />the north county utility system. <br />Commissioner Scurlock asked how our purchase price compares <br />to the original cost, and Director Pinto explained that the <br />maximum value of $777,000 doesn't mean that Mr. Hyatt is going to <br />be paid that much. The purchase price is based on a surcharge of <br />$10.00 per unit over a maximum of 10 years. This means that the <br />owner would get only $10.00 for every unit that is in place at <br />the end of that 10 -year period. We projected out what we thought <br />was a fairly liberal build -out schedule for the park, and even <br />with that, the maximum purchase price would be around $600,000. <br />However, if it did build out quicker, he would be allowed a <br />maximum price of $777,000, but we doubt very much if that would <br />take place. In any event, the total price would not exceed <br />$777,000, and in all probability, it would be lower than that. <br />29 <br />