1988-035 - Laserfiche WebLink

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I SECTION XX COUNTY PURCHASE OPTION The County shall have the right to purchase the Utility's plant at Utility's original construction cost, original land cost, plus costs associated with capital additions and expansions to the plant, less 3-1/2% depreciation per year, and less any contributions in aid of construction. Depreciation' on the system shall be calculated to start at the time the County issues an operating permit as provided in Section VI. Upon acquisition of the system and appurtenant real estate, the County would then own the entire system and would terminate this franchise and provide service to the franchise territory. All accumulated escrow fees would vest in the County. In the event of an acquisition by the County, or the use of the County's own plants, the County shall receive the system free of cost and in good repair, ordinary wear and tear expected. The Utility shall pay to the County all escrowed impact fees upon acquisition or upon connection to County's own plants. SECTION XXI RENEWAL & REPLACEMENT ACCOUNT Two and one-half percent (2-1/20) of the annual operating cost of the Utility shall be' delivered to the County to be placed in an interest bearing renewal and replacement account for purposes of renewal or replacement of the capital assets of the system. The Utility shall fund said account initially with $5,000.00. Interest shall accumulate in the account until the account reaches 250 of the estimated value of the system's original cost; thereafter interest shall be paid to the Utility annually by the County. The funds held by the County shall be used only for renewal or replacement of the system by the Utility as the need arises and approved by the County. The percentage required to be placed in the renewal and replacement account may be amended after review by the County as necessary to maintain a sufficient account balance taking into account the general condition of the system. Upon the County taking over the system all accumulated Renewal and Replacement escrow funds shall vest in the County. The County is granted the right to make necessary repairs using these funds in the event of default on the part of the Utility in maintaining the quality standards established in this franchise. If the County purchases the corporation's utility system then any funds.: in the renewal and replacement account shall vest in the County.