1984-024 - Laserfiche WebLink

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b) In the event of an acquisition by the County, or the IF4 utilization of the County's own plants, the County shall receive the water distribution and/or wastewater collection system free of cost and in good repair, wear and tear excepted. The Utility agrees to grant to the County any easements necessary to connect the water and/or L wastewater system to the County's water/wastewater systems without charge. The Utility shall pay all escrowed impact fees upon acquisition or upon connection to County's own plants. c) If in the event the County determines that it will not exercise its option us0er item #4(a) within seven (7) years, • • escrowed contributions in aid of construction or Lipact fees shall bem ne part of the renewal and replacement fund and may be used as described within Section XVII, RErIUML & REPIACENEfr ACMW. If at any time thereafter the County takes possession or makes use of the utility systems, all contributions in aid of construction funds collected will vest to the County and those funds which have been expended or an equal amount would be deducted from any purchase price. SECTION XVII REMN1P,L & PEMM2MENT ACCOUNT Two and one half percent (2W of the gros-- receipts of the Utility shall be placed in an interest bearing renewal and replacement account for purposes of renewal and/or replacement of the capital assets of the water and/or wastewater system of the Utility. Additionally, the Utility shall initially fund said account with two thousand dollars ($2,000) which will also be reserved for capital maintenance items. Interest shall accumulate in said account until the account reaches ten thousand dollars ($10,000); thereafter interest shall be paid to the Utility annually. Said funds shall be used as a sinking fund and applied only for renewal and/or replacement of the water and/or wastewater system by the Utility as the need arises; 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 condi-tion of the system. The County is granted the right to make necessary repairs using said funds in the event of default on the part of the Utility in maintaining the quality standards established herein. In the event the County exercises its rights under (2) or (3) above, said fund shall vest in the County. In the event that the County purchases the corporation's uULJ.ty systait pursuant to the provisions of this franchise as stated above, then any funds in said renewal and replacement account shall vest in the County. INSURANCE SH PTON Wiii 12