1986-049 - Laserfiche WebLink

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SECTION XVII COUNTY PURCHASE_ OPTION The County shall have the right to purchase the Utility's wastewater plant at Utility's original construction cost, original land cost, plus costs associated with capital additions and expansions to the plant, less three and one-half percent (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 wastewater plant and appurtenant real estate, the County would then own the entire wastewater system and would terminate this franchise and provide wastewater utility 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 utilization of the County's own plants, the County shall receive the wastewater collection system free of cost and in good repair, wear and tear expected. The Utility agrees to grant to the County any easements necessary to connect the wastewater system to the County's wastewater system without charge. The Utility shall pay all escrowed impact fees upon acquisition or upon connection to County's own plants. SECTION XVIII RENEWAL & REPLACEMENT ACCOUNT Two and one half percent (2 1/2%) 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 wastewater system of the Utility. Utility shall initially fund said account with five thousand dollars ($5000.00). Interest shall accumulate in said account until the account reaches twenty-five percent (25%) of the estimated value of the system's original cost; thereafter interest shall be paid to the Utility annually by the County. Said funds shall be used only for renewal or replacement of the wastewater system by the Utility as the needs 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 wastewater system all accumulated Renewal and Replacement escrow funds shall vest to the County. The County is granted the right to make necessary repairs using said funds in the event of -11-