1/22/1991 - Laserfiche WebLink

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Mr. Pitiak asked Attorney Vitunac if, in his professional opinion, this would be a proper way to assess the cost in acqut'ring a private utility, but Attorney Vitunac stated that he would let Director Pinto answer that question as he is the expert in acqu-isition. Director Pinto believed that the failure of the document is when they just say an appraiser. He felt that the review of the utility by an engineering firm to see exactly what the assets are is probably a better practice to follow. With regard to going outside for professional services, those services can be done in-house in many cases as Commissioner Scurlock has said. The objection usually comes from whoever is selling the utility, because they usually will want to go out and get their own professionals to try to convince us that the facility is worth more than we are willing to pay. Commissioner Scurlock felt the ultimate answer that Mr. Pitiak is looking fords that the County will make an assessment as to what we feel the value of that system is, and if it is not in the best interests of our county to acquire it, and if the price is higher than what we feel we should be paying for it, we are not going to acquire it. That is what happened with GDU in the south county, where the analysis we had done showed that the system wasn't worth what GDU felt it was worth. Therefore, we backed away and we are building our own system. Commissioner Scurlock felt that you will find that this Commission, which ultimately makes the decision, isn't going to pay more than what we feel is a fair value that is supported by appraisals and engineering analyses. He noted that today's action doesn't make any decision as to us actually acquiring the utility._ It just.sets in motion us trying to exercise the provisions of the franchise agreement that has been assigned to us. The next step is to evaluate the facility, and if we cannot come to something we feel is reasonable, then the Commission has to make a decision. Chairman Bird understood then that with the transfer of this agreement to us, the County is bound to_using three appraisers in the purchase of this utility, and Director Pinto explained that the County is bound to it only.if the utility insists that is the way they want it done. Corrimissioner Scurlock explained that if they agree to take the purchase price we are offering based on our analyses, we are off to the races. If they say no, that they are exercising their provision not to agree to it, we can just walk away and say that we are not acquiring. `3 6 . BOOK, FAGE�� d � , 199 L