1995-11 SupplimentalAgreement
1995mil
pplaiment I
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AGREEMENT FOR SALE AND PURCHASE
OF UTILITY SYSTEM
THIS AGREEMENT, made this day of — 1995
by and between LAKE HILLS UTILITIES, INC., a Florida corporation
("LHU"), whose address is P. 0. Box 3873, Longwood, Florida 32791,
and the CITY OF CLERMONT, a municipal corporation of the State of
Florida (the "City"), whose address is P. 0. Box 120219, Clermont,
Florida 34712-0219;
WITNESSETH:
WHEREAS, LHU is the owner of a water treatment and
distribution system in Lake County, Florida, which serves customers
in the Greater Hills and Greater Pines Subdivisions east of and
adjacent to the City; and
WHEREAS, the City wishes to buy LHU's water treatment and
distribution system from LHU, and LHU wishes to sell the same to
the City, all on the terms and conditions contained herein.
NOW THEREFORE, in consideration of the premises hereof, the
parties hereto agree as follows:
ARTICLE I
DEFINITIONS
1. Definitions: When the following -listed words, phrases and
terms are used in this Agreement, they shall have the meaning set
forth in this paragraph.
A. "Agreement" shall mean this Agreement between LHU
and the City.
B. "City" shall mean the City of Clermont, a Florida
municipal corporation.
C. "City's Systems" shall mean the water treatment and
distribution systems now or hereafter owned and operated by the
City.
D. "Closing" shall mean the Closing hereunder for the
sale and purchase of the LHU System.
E. "Closing Date" shall mean the date on which the
Closing of the LHU System is conducted.
F. "Commercial Property" shall mean that certain
undeveloped tract of land on Highway 50, at the entrance to the
Greater Hills Subdivision, in Lake County, Florida, which is the
commercial property zoned as part of the Greater Hills Subdivision.
G. "Easements" shall mean those easements described in
the platted sections of Greater Hills and Greater Pines, as well as
all other easements which are used and useful in the operation of
the System.
H. "Greater" shall mean The Greater Construction Corp.,
a Florida corporation, which is the developer and home builder of
the Greater Hills and Greater Pines Subdivisions.
I. "Greater Hills and Greater Pines Developed Lots"
shall mean the completed single-family lots in the platted sections
of the Greater Hills Subdivision, which include Greater Hills,
Phases 1 through 5, and the platted sections of the Greater Pines
Subdivision, which include Phases 1 and 2, which are vacant or on
which there are houses built or houses are under construction.
J. "Greater Hills Subdivision" shall mean that certain
PUD in Lake County north of State Road 50 consisting of several
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phases, which contains the Greater Hills Developed Lots and the
Greater Hills Undeveloped Lots, and which also contains the
Commercial Property. The Greater Hills Subdivision is more
particularly described in Schedule "A" attached hereto.
K. "Greater Hills Undeveloped Lots" shall mean the
approximately two hundred and twenty-five (225) lots in the Greater
Hills subdivision which have not been platted or completed, and on
which no houses have been constructed.
L. "Greater Pines Subdivision" shall mean that certain
single-family Subdivision in Lake County on Hancock Road, south of
State Road 50, which at this time contains the Greater Pines
Developed Lots and the Greater Pines Undeveloped Lots. The Greater
Pines Subdivision is more particularly described in Schedule "B"
attached hereto.
M. "Greater Pines Undeveloped Lots" shall mean the
three hundred and fifty (350) single-family lots in the Greater
Pines Subdivision which have not been platted or completed, and on
which no houses have been constructed.
N. "Guaranteed Capacity" shall mean the capacity that
the City agrees, and shall be obligated, to make available, on
demand, through the existing or expanded LHU System, or the City's
systems, in order to provide water service to improvements
hereafter constructed in the Greater Hills and Greater Pines
Subdivisions, including the Greater Hills and Greater Pines
Developed Lots, Undeveloped Lots and the Commercial Property, and
to meet the obligations of the Utility Agreements which the City is
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assuming hereunder, in such amounts of capacity as are required to
fully serve such improvements and developments by the State of
Florida and any agency, department or subdivision thereof, as the
same may be from time to time.
O. "LHU" shall mean Lake Hills Utilities, Inc., a
Florida corporation.
P. "LHU Customers" shall mean all water customers of
LHU to whom LHU is providing water service now, and those to whom
it shall be providing service at the time of closing.
Q. "LHU System" shall mean the LHU water treatment and
distribution system which serves the Greater Hills and Greater
Pines Subdivisions, including, but not limited to, the Utility Real
Property, the Easements, meters, connections, customers, wells,
pumps, pumping stations, hydrants, raw water lines, storage tanks,
treatment facilities, lines, mains, distribution facilities, plants
and all tangible personal property owned by LHU, which is used and
useful in providing water service to its existing and future
customers. The LHU System is generally described in Schedule "C"
attached hereto.
R. "Plant Site" shall mean the tract of real property
being sold to the City hereunder as part of the LHU System on which
the water treatment and distribution plant is located.
S. "Purchase Price" shall mean the price that the City
agrees to pay, and LHU agrees to accept, with respect to the sale
and purchase of the LHU System.
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T. "Title Insurance Policy" shall mean the owner's
title insurance policy insuring the title to the Utility Real
Property which shall be delivered by LHU to the City at closing
hereunder.
U. "Utility Agreement (s)" shall mean those certain
agreements between LHU and developers, including Greater, pursuant
to which LHU provides water service, which are described in and
attached as Schedule "D" hereto.
V. "Utility Real Property" shall mean the Well Sites
and the Plant Site which are more particularly described in
Schedule "E" attached hereto.
W. "Water Connection Fees" shall mean all sums of money
assessed or charged by the City, including, but not limited to,
impact fees, tap -in fees and connection charges, to permit a
customer to connect an improved residential or commercial property
to the City's Systems, and to receive water service from the City
upon the further payment to the City of monthly service charges.
X. "Well Sites" shall mean those tracts of real property
being sold to the City hereunder as part of the LHU System which
have the wells which provide the water to the LHU System.
ARTICLE II
SALE OF SYSTEM AND PURCHASE PRICE
1. Sale and Purchase. LHU hereby agrees to sell the LHU
System to the City, and the City hereby agrees to purchase the LHU
System from LHU, on the terms and conditions contained in this
Agreement.
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2. Purchase Price. The Purchase Price shall be ONE MILLION
FIVE HUNDRED THOUSAND DOLLARS ($1,500,000). The entire Purchase
Price, subject to prorations and adjustments described herein,
shall be paid by the City to LHU at Closing hereunder in cash, by
cashier's check, or by other funds acceptable to LHU.
ARTICLE III
TRANSFER OF SYSTEM AND CLOSING
1. Closing. The Closing shall be on April 15, 1995 at ten
o'clock a.m. at the offices of Lowndes, Drosdick, Doster, Kantor &
Reed, P.A., 215 North Eola Drive, Orlando, Florida 32801, or at
such other time or place as may be mutually agreed to by the
parties hereto. The possession of the LHU System shall be
transferred to the City at Closing.
2. Documents Prior to Closing. On or before fifteen (15)
days from the date hereof, LHU shall deliver to the City the
following:
A. A title insurance commitment agreeing to issue the
Title Insurance Policy to the City at Closing hereunder. The Title
Insurance Policy shall insure that the City is the fee simple owner
of the Utility Real Property, free and clear of all liens and
encumbrances, except for taxes for the year of sale with the
printed exceptions contained in the standard title insurance policy
deleted. If the title insurance commitment contains defects which
cause the title to the Utility Real Property to be unmarketable,
which are not removed by the time of Closing, the City shall not be
obligated to close hereunder, and the parties hereto shall
thereupon be relieved from all obligations and liabilities
hereunder.
B. A Survey of the Utility Real Property and the
Easements, prepared by a Registered Florida Surveyor, showing no
encroachments, defects or title problems. The Survey shall be
performed within ninety (90) days before the Closing Date, shall
meet the minimum standards for surveying required by the Department
of Professional Regulation and shall be certified to the title
insurer and the City by a registered Florida Surveyor.
C. A complete list of the names and addresses of all
LHU Customers, the amounts of their deposits and their billing
history for the past year.
3. Documents at Closing. At Closing, against payment by the
City the Purchase Price, LHU shall deliver to the City (1) a
Special Warranty Deed conveying the Utility Real Property to the
City, free and clear of liens or encumbrances, (2) an Assignment to
the City assigning the Easements, (3) a Bill of Sale conveying and
transferring the LHU System to the City free and clear of liens or
encumbrances, (4) the Title Insurance Policy, and (5) owners of
affidavits as required by the title insurance company issuing the
Title Insurance Policy.
4. Customer Deposits. LHU shall also transfer all of the
LHU Customer deposits to the City and the City shall assume the
liability therefor to the LHU Customers. The City shall notify the
LHU Customers of the sale immediately after Closing.
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5. Public Service Commission. Prior to and after Closing,
the parties shall do all things reasonably necessary to obtain such
approvals of this transaction as may be required by the Florida
Public Service Commission.
6. Closing Costs and Prorations. LHU shall pay the
documentary stamps on the Special Warranty Deed and shall pay for
the Title Insurance Policy. The City shall pay for recording the
Deed and the Bill of Sale. The real estate taxes and the
intangible personal property taxes on the Utility Real Property
shall be prorated as of the Closing Date.
7. Allocation of Purchase Price. The parties agree that the
allocation of the Purchase Price to the assets being sold hereunder
for all purposes, including, but not limited to, determining the
documentary stamps on the Deed and the amount of the Title
Insurance Policy, shall be as follows: the amount of ONE MILLION
TWO HUNDRED THOUSAND DOLLARS ($1,200,000) shall be allocated to the
Utility Real Property and the real improvements thereon, and the
balance of the Purchase Price shall be allocated to the balance of
the LHU System.
8. Accounts Payable. All utility charges (including
electric power bills) shall be prorated and adjusted at Closing.
LHU shall be responsible for and shall pay all accounts payable
with respect to the LHU system accruing prior to the Closing Date,
and the City shall be responsible for and shall pay all accounts
payable with respect to the LHU System accruing on and after the
Closing Date.
9. Unbilled Amounts. The amounts due for water services
rendered to the LHU Customers by LHU from the date of the last
billing prior to the Closing Date until and including the day prior
to the Closing Date, estimated on the basis of the last billing,
shall be paid to LHU by the City at Closing.
10. Accounts Receivable. The accounts receivable for utility
services rendered prior to the Closing Date shall belong to LHU,
and the City shall use its best efforts to aid LHU in the
collection of these receivables, including disconnecting customers
who fail to pay after reasonable notice; provided, however, the
City shall have no duty to take affirmative action to collect such
accounts and shall not discontinue service to aid such collection
unless LHU shall agree to indemnify and hold the City harmless for
any damages to which the City might be exposed as a result of such
discontinuance of service.
ARTICLE IV
REPRESENTATIONS, WARRANTIES AND INDEMNIFICATION
1. LHU's Representations and Warranties. LHU, to the best
of its knowledge and belief, hereby represents and warrants to the
City as follows:
A. LHU has been organized under the laws of the State
of Florida, validly exists and is in good standing in the State of
Florida.
B. The execution and delivery of this Agreement by LHU
and the consummation by LHU of the transactions contemplated herein
have been duly authorized by all requisite corporate action and
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such due authorization will remain in full force and effect on the
Closing Date.
C. As of the Closing Date, LHU will be the lawful owner
of the LHU System and may lawfully sell the LHU System and convey
good and marketable title thereto to the City.
D. There are no other agreements or obligations which
encumber the LHU System or which would impose any obligation after
the Closing Date on the City other than those disclosed herein.
There are no service commitments or reservations of capacity other
than those disclosed herein.
E. LHU has maintained its records in accordance with
all applicable requirements of Florida law. All reports required
by law to be filed have been and will be as of the Closing Date
timely filed. There are no other records or reports relating to
the systems, permits, service interruptions, accidents, complaints,
customer accounts, engineering or environmental matters maintained
or required to be maintained other than those which LHU has made or
will make available to the City for inspection. All files, records
and reports shall be made available to the City for inspection and
copying upon request.
F. There are no outstanding, pending or threatened
suits or claims and no outstanding, pending or threatened
regulatory proceedings against, by or affecting LHU in any court or
before any governmental agency which might have a materially
adverse affect on this transaction or the LHU System.
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G. If, prior to the Closing Date, any event shall occur
relating to or affecting the LHU System or the transaction
contemplated by this Agreement which might result in an adverse
change of condition of a material nature, LHU will promptly notify
the City in writing of circumstances and details of such event.
H. LHU has the right to use the Easements and rights -
of -way, necessary to operate and maintain the LHU System, and for
the parts located in public rights -of -way, LHU has obtained
necessary approvals from appropriate governmental. agencies.
I. LHU does not know of any existing defects in the
physical condition of the LHU System which would materially impair
its operation or value, and if LHU shall learn of any such defects
prior to Closing, it shall advise the City in writing of the extent
and nature of such defects. This is the only representation or
warranty, express or implied, that LHU shall make with respect to
the physical condition of the LHU System in connection with this
sale and purchase.
2. LHU's Indemnification. LHU hereby agrees to save and
hold the City harmless from, and to indemnify the City against, any
and all losses or damages (including, but not limited to,
attorney's fees) suffered by the City resulting from any breach of
this Agreement or any breach of the representations or warranties
made by LHU in this Agreement. Notwithstanding the foregoing, in
the event there shall be a breach of the foregoing representations
and warranties by LHU which is known to the City at or before the
time of Closing hereunder, City's sole remedy hereunder for such
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known breach shall be to not close hereunder and terminate this
Agreement. In any event, the foregoing representations and
warranties shall expire one (1) year from the date of Closing.
3. The City's Representations and Warranties. The City, to
the best of its knowledge and belief, represents, warrants and
agrees with LHU as follows:
A. The execution and delivery of this Agreement by the
City and the consummation by the city of the transactions
contemplated herein have been duly authorized by all requisite
municipal actions, and such authority shall remain in full force
and effect until all such transactions have been completed.
B. The City has or will have inspected the physical
conditions of the LHU System prior to the Closing Date, and that in
purchasing the System it shall rely solely on this inspection and
on the representations and warranties of LHU regarding the
condition of the System contained in Paragraph IV.1.I.
C. The City will purchase the LHU System in the
condition it is in at the time of Closing, including any latent
defects related thereto, and the City shall not hold LHU
responsible or liable for or on account of any defects or failures
occurring or being discovered in the LHU System after Closing,
except for those defects or failures for which LHU had actual
knowledge and failed to disclose to the City prior to Closing.
4. City's Indemnification. The City hereby agrees to save
and hold LHU harmless from, and to indemnify LHU against, any and
all losses or damages (including, but not limited to, attorney's
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fees) suffered by LHU resulting from any breach of this Agreement,
or any breach of the representations or warranties made by the City
in this Agreement. Notwithstanding the foregoing, in the event
there shall be a breach of the foregoing representations and
warranties by the City which is known to LHU at or before the time
of Closing hereunder, LHU's sole remedy hereunder for such known
breach shall be to not close hereunder and terminate this
Agreement. In any event, the foregoing representations and
warranties shall expire one (1) year from the date of Closing.
ARTICLE V
GUARANTEED CAPACITY
1. Utility Agreements. The City hereby assumes LHU's
obligations under the Utility Agreements, and agrees to provide
Guaranteed Capacity to the real property described in the Utility
Agreements under the terms and conditions contained in the Utility
Agreements. With respect to the Utility Agreement between LHU and
Lake Equity Associates, Inc., Lake Equity Associates, Inc. has paid
for approximately fifty-eight (58) single-family connections for
the lots to be developed in the proposed Arrowhead Subdivision
which it owns, and the City agrees to provide fifty-eight (58)
connections without charge or fee therefor. With respect to the
Utility Agreements between LHU and Greater, the City's obligations
with respect to fees and charges are described in Paragraph 2
below.
2. Service to Developed Lots. The City agrees to provide
Guaranteed Capacity and water service from the LHU System to the
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Greater Hills Developed Lots and the Greater Pines Developed Lots
upon the request therefor by Greater. The City recognizes and
agrees that Greater has paid all of the Water Connection Fees or
other charges due or to become due with respect to the Greater
Hills Developed Lots and the Greater Pines Developed Lots. The
City hereby agrees that it will not charge any Water Connection
Fees to Greater with respect to providing Guaranteed Capacity and
water service to the Greater Hills Developed Lots and the Greater
Pines Developed Lots. The City will only charge.monthly service
charges for services rendered.
3. Service to Undeveloped Lots. The City agrees to provide
Guaranteed Capacity and water service from the LHU system to the
Greater Hills Undeveloped Lots and the Greater Pines Undeveloped
Lots upon request therefor by Greater. The City will charge Water
Connection Fees for the Greater Hills and Greater Pines Undeveloped
Lots in accordance with the City's standard practice therefor in
the same amounts which the City charges its other water customers
who are similarly situated.
4. Guaranteed Capacity. The City recognizes and agrees that
the LHU System has limited capacity, and the City agrees it will
increase this capacity, from time to time, in order to provide the
Guaranteed Capacity and water service to the Greater Hills and
Greater Pines Developed Lots, Undeveloped Lots and the Commercial
Property, and to meet and satisfy the obligations of the Utility
Agreements. The City agrees to provide Guaranteed Capacity to
these customers when the same is requested thereby. During any
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period of time in which the City is unable to provide all
Guaranteed Capacity, which has been requested, in accordance with
this Article V, it will not provide any new or additional water
service to any customer not entitled to Guaranteed Capacity
hereunder, and all of its available capacity shall be used
exclusively for the requested Guaranteed Capacity. Moreover, the
City will expand the LHU System, from time to time, to increase its
capacity to have capacity readily available to provide the
Guaranteed Capacity. In any event, the City shall provide the
Guaranteed Capacity no later than ninety (90) days after the
request therefor.
5. Annexation to the City. The City agrees to provide
Guaranteed Capacity and water service to the Greater Hills and
Greater Pines Subdivisions, and to meet its obligations under the
Utility Agreements, notwithstanding the fact that the properties to
be served are not within the City limits of the City. The City
shall not impose as a condition to service that these properties be
annexed to, or be incorporated in, the City.
6. Remedies. The assumption by the City of the Utility
Agreement and the other provisions of this Article are integral
portions of this Agreement. Failure of the City to carry out the
provisions of this Article would cause irreparable harm to LHU and
to Greater, and to the parties to the Utility Agreements, which
would be difficult, if not impossible, to quantify. Therefore, the
City agrees that in addition to such other remedies as may be
available to them at either equity or law, either LHU or Greater
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shall have the right to seek specific performance of the City's
obligations hereunder.
ARTICLE VI
GENERAL CONDITIONS
1. Survival. This Agreement shall survive the Closing
hereunder and the agreements and obligations herein contained shall
remain in full force and effect for a period of one (1) year after
the Closing Date.
2. Time of Essence. Time is hereby made of the essence of
this Agreement. This Agreement may not be assigned by either party
hereto without the written consent of the non -assigning party.
Said consent may be withheld without reason.
3. Notices. Notices or payments required to be made under
the terms of this Agreement shall be delivered to the parties at
the respective addresses:
LHU: Lake Hills Utilities, Inc.
Post Office Box 3873
Longwood, Florida 32791
Attention: Mr. Lester N. Mandell
With a copy to: John F. Lowndes, Esquire
Lowndes, Drosdick, Doster, Kantor
& Reed, P.A.
P. 0. Box 2809
Orlando, Florida 32802
City: City of Clermont
Clermont City Hall
P. O. Box 120219
Clermont, Florida 34712-0219
Attention: Mayor Robert Pool
Any notices or payments required or permitted hereunder shall
be considered properly made if in writing and mailed by United
States Mail, postage prepaid, to the addresses set forth above.
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4. Litigation Expenses. In the event of litigation between
the parties hereto arising out of, or with respect to, this
Agreement, the prevailing Party in such litigation shall be
entitled to recover from the party not prevailing therein the
prevailing party's reasonable expenses, costs and attorney fees at
both the trial and appellate levels.
S. Offer and Acceptance. This Agreement has been executed
by LHU, and until it has been executed by the City it shall
constitute an offer by LHU which may be withdrawn at any time.
Upon the acceptance and execution hereof by the City, and the
delivery of a fully executed counterpart hereof by the City to LHU,
this Agreement shall become a binding agreement upon all parties
hereto. In the event that this Agreement is not accepted, executed
and delivered by the City on or before February 10, 1995, the offer
contained herein shall automatically expire and be of no further
force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed the day and year first above written.
Signed, sealed and delivered LAKE ILLS 7ILITES,I INC.
in the presence of: L
B :,
Lester N. Mandell, President
CITY OF CLERMONT, FLORIDA
By:
ert Pool, Mayor
172138\MADDOXDJ 17 (Revised 1-31-95 )
SCHEDULE "A"
to Agreement for Sale and Purchase
of Utility System by and between
Lake Hills Utilities, Inc. and
the City of Clermont, Florida
TRACT I:
The Southeast 1/4 of the Northeast 1/4 and the North 1/2 of the
Southeast 1/4 of Section 22, Township 22 South, Range 26 East,
Lake County, Florida.
TRACT II:
The Southwest 1/4 of the Northeast 1/4 of Section 22, Township 22
South, Range 26 East, Lake County, Florida.
Tract III:
All that part of the Southwest 1/4 of the Southwest 1/4 of the
Southeast 1/4 of Section 15, Township 22 South, Range 26 East;
and all that part of the North 1/2 of the Northeast 1/4 of
Section 22, Township 22 South, Range 26 East lying South of the
Right -of -Way of existing highway, being also described as East
Clermont Subdivision, according to the Plat thereof recorded in
Plat Book 8, Page 73, Public Records of Lake County, Florida.
Tract IV:
The Southwest 1/4 of the Southeast 1/4 lying East of the existing
Railroad Right -of -Way and the Southeast 1/4 of the Southeast 1/4,
all in Section 22, Township 22 South, Range 26 East, Lake County,
Florida.
Tract V:
A tract of land being a portion of Section 27, Township 22 South,
Range 26 East, Lake County, Florida, being more particularly
described as follows: Commence at the Northeast corner of
Section 27; thence North 88048121" West along the North line of
Section 27 for a distance of 1272.09 feet to the Point of
Beginning; thence South 00034'10" West along a line 34.15 feet
East of and parallel to the West line of the Northeast 1/4 of the
Northeast 1/4 of Section 27, a distance of 1154.16 feet, more or
less, to a point on the North Right -of -Way of State Road #50;
thence West along the North Right -of -Way of State Road #50 for a
distance of 600.03 feet; thence North 00034110" East along a line
565.85 feet West of and parallel to the West line of the
Northeast 1/4 of the Northeast 1/4 of Section 27 for a distance
of 1155.74 feet, more or less, to a point on the North line of
the Northeast 1/4 of Section 27; thence South 88048'21" East
along the North line of the Northeast 1/4 of Section 27 for a
distance of 600.00 feet, more or less, to the Point of
Beginning. Containing 15.91 acres, more or less.
Total Acres: 312.7+
SCHEDULE "B"
to Agreement for Sale and Purchase
of Utility System by and between
Lake Hills Utilities, Inc. and
the City of Clermont, Florida
Begin at the Northeast corner of Section 33, Township 22 South,
Range 26 East, Lake County, Florida: Thence S.00'30114"E.' along the
Easterly boundary of said Section 33, and the centerline of Hancock
Road (3-1254), a distance of 2537.34 feet to the Southeast corner of
the Northeast 1/4 of said Section 33, thence S.89'38'32"W. along the
South boundary of the said Northeast 1/4, a distance of 2631.87 feet
to the Southeast corner of Tract 28, POSTAL COLONY COMPANY plat of
Section 33, Township 22 South, Range 26 East, as recorded in Plat
Book 9, Page 65, Public Records of Lake County, Florida; thence
N00'10'04"W. along the Easterly boundary of said Tract 28, a
distance of 621.58 feet to the Northeast corner of said Tract 28;
thence N.89'45131"W. along the North boundary of said Tract 28, a
distance of 14.58 feet to a point on the Westerly boundary of the
Northeast 1/4 of said Section 33; thence N00'34143"W. along said
Westerly boundary, a distance of 7.37 feet to the Southeast corner
of the Northeast 1/4 of the Southeast 1/4 of the Northwest 1/4 of
said Section 33; thence S.89'35'58"W. along the Southerly boundary
of said Northeast 1/4 of the Southeast 1/4 of the Northwest 1/4, a
distance of 657.69 feet to the Southwest corner of said Northeast
1/4 of the Southeast 1/4 of the Northwest 1/4; thence N00'29146"W.
along the Westerly boundary of said Northeast 1/4 of the Southeast
1/4 of the Northwest 1/4, a distance of 628.61 feet to the South
boundary of Tract 11, said POSTAL COLONY Subdivision; thence
N89'33'22"E. along the said South boundary, a distance of 13.82 feet
to the Southeast corner of said Tract 11; thence N00'09147"W. along
the East boundary of said Tract 11, a distance of 622.37 feet to the
Northeast corner of said Tract 11; thence S.89'38133"W. along the
North boundary of said Tract 11, a distance of 662.06 feet to the
Northwest corner of said Tract 11; thence N.00'09131"W. 114.45 feet;
thence S89'52113"W. 667.54 feet to a point on the Westerly boundary
of the Northeast 1/4 of the Northwest 1/4 of the Northwest 1/4 of
Section 33; thence N.00'19'37"W. along said Westerly boundary, a
distance of 513.76 feet to the Southwest corner of Tract 58, LAKE
HIGHLAND'S COMPANY plat of Section 28, Township 22 South, Range 26
East, recorded in Plat Book 2, Page 28, Public Records of Lake
County, Florida; thence N.89'28109"E. along the Southerly boundary
of said Tract 58, a distance of 50.38 feet; thence departing said
Southerly boundary, run N.32'54134"E. 42.44 feet; thence
N.83'01'03"E. 269.90 feet; thence N.57'04'33"E. 165.20 feet; thence
N.13'02157"W. 114.60 feet thence N.02'37'57"W. 93.00 feet; thence N.
00'27'33"E. 304.26 feet to the Southerly boundary of Tract 55, said
LAKE HIGHLAND'S COMPANY Plat; thence N.89'27104"E. along the
Southerly boundary of Tracts 55, 54 and 53, said LAKE HIGHLAND'S
COMPANY Plat, a distance of 1514.72 feet to the Southwest corner of
Tract 52, said LAKE HIGHLAND'S COMPANY Plat; thence N.89'14'42"E.
along the Southerly boundary of Tracts 52 and 51, said LAKE
HIGHLAND'S COMPANY Plat, a distance of 1321.16 feet to the Southeast
corner of Tract 51; thence N.00'03'14"E. along the East boundary of
Tracts 51 and 46, said LAKE HIGHLAND'S COMPANY Plat, a distance of
1324.99 feet to the Southwest corner of Tract 34, said LAKE
HIGHLAND'S COMPANY Plat; thence N.89'21'27"E. along the Southerly
boundary of Tracts 34 and 33, said LAKE HIGHLAND'S COMPANY Plat, a
distance of 1318.20 feet to the Southeast corner of said Tract 33,
and a point on the Easterly boundary of the aforesaid Section 28 and
the centerline of Hancock Road (3-1254); thence S.00104123"E. along
said Easterly boundary of Section 28 and the centerline of said
Hancock Road, a distance of 1983.54 feet to the Point of Beginning.
Subject to a 25 foot right-of-way along the East boundary for
Hancock Road, recorded in Official Records Book 474, Page 999, Lake
County, Florida.
SCHEDULE "C"
to Agreement for Sale and Purchase
of Utility System by and between
Lake Hills Utilities, Inc. and
the City of Clermont, Florida
The Lake Hills Water Treatment plant is situated in Greater Hills
Subdivision, and currently serves the Greater Hills and Greater
Pines Subdivisions.
Raw Water System: Raw water is pumped from two production wells to
the treatment facilities. Well No. 1, constructed in 1989 on the
treatment plant site, is a 10 inch diameter well with a depth of
approximately 1,315 feet and a 1,400 gallon per minute (GPM) pump.
Well No. 2, constructed in 1990 approximately 1,000 feet north of
the plant site, is an 18 inch diameter well with a depth of
approximately 1,320 feet and an 1,800 GPM pump. The wells are
connected to the plant with 12 inch and 14 inch raw water lines,
respectively.
Facilities: The plant includes a newly -constructed concrete block
building of approximately 1,800 square feet, with wood trusses and
asphalt shingle roof, completed in 1994. This building houses the
maintenance area, office, laboratory, chlorination room, high
service pumps, pump, well, and chlorination controls, auxiliary
power generator, and generator day tank. The plant includes a
restroom facility served by a septic system and elevated drain
field on site. The site is bordered by a perimeter security fence
and illuminated by external lighting.
Chlorination: Consists of an Ecometrics 50 PPD chlorinator.
High Service Pumps: High service pumps consist of 3 each, Crane
Demming Type BF 6x4 50 hp, 750 gpm pumps.
Auxiliary Power: Consists of a single, 275 KW Cummins generator
set with auto transfer. It includes a 2,000 gallon exterior above-
ground fuel tank and a 10 gallon day tank inside the building. The
generator set provides auxiliary power to the building, controls,
high service pumps and well pump number 1.
Storage: Storage consists of a 10,000 gallon steel, hydropneumatic
tank and 2 50,000 gallon horizontal, above -ground steel storage
tanks.
Aeration: Cascade type, 1,250 GPM capacity.
Metering: The plant master meter is a 6" 70-1,000 GPM venturi
type.
Distribution: Distribution system lines include a 16" main running
from Greater Hills Subdivision along the northern and then southern
rights -of -way of S.R. 50 to Hancock Road, and then along the
eastern right-of-way of Hancock Road to Greater Pines Subdivision,
Phase 1. Also included are the distribution lines in Greater
Hills, Phases 1, 2, 3, 4 and 5, and Greater Pines, Phases 1 and 2.
1
2.
3.
4.
SCHEDULE "D"
to Agreement for Sale and Purchase
of Utility System by and between
Lake Hills Utilities, Inc. and
the City of Clermont, Florida
Utility Agreement by and between Lake Hills Utilities, Inc.
and The Greater Construction Corporation, dated August 11,
1989, attached hereto as Exhibit "D-1"
Utility Agreement by and between Lake Hills Utilities, Inc.
and Lake Equity Associates, dated September 19, 1989, attached
hereto as Exhibit "D-2"
Utility Agreement by and between Lake Hills Utilities, Inc.
and Donald Guber and Ann Guber, as Trustees, dated August 1,
1990, attached hereto as Exhibit "D-3"
Utility Agreement by and between Lake Hills Utilities, Inc.
and The Greater Construction Corporation, dated August 5,
1993, attached hereto as Exhibit "D-4"
UTILITY AGREEMENT
THIS UTILITY AGREEMENT dated this //.2�: day of G� ,
1989, by and between LAKE HILLS UTILITIES, INC., a Florida
corporation (hereinafter referred to as "Utilities"), and THE
GREATER CONSTRUCTION CORPORATION, a Florida corporation
(hereinafter referred to as the "Developer").
PREMISES
WHEREAS, Developer is the owner or contract purchaser of
certain tracts of real property situate in Lake County, Florida,
described with particularity in Exhibit "A" attached hereto and
made a part hereof, which property is hereinafter referred to as
the "Property"; and
WHEREAS, Developer intends to develop and improve the
Property into a residential area containing approximately six
hundred forty-six (646) single-family residential lots
(hereinafter referred to as the "Development"); and
WHEREAS, in connection with the Development it is necessary
for the Developer to obtain adequate water service; and
WHEREAS, Utilities intends to be the owner and operator of
water production and distribution facilities which are to serve
real property in close proximity to the Property; and
WHEREAS, the Developer has agreed to pay Utilities a
Contribution -in -Aid -of -Construction as hereinafter defined and
other charges set forth herein to induce -utilities to provide
water service to the Property; and
WHEREAS, as a condition precedent to providing such service
the Developer has agreed to construct at its own cost and expense
certain facilities as more particularly described hereinafter;
and
WHEREAS, Utilities has agreed to make its water facilities
available to the Property on the terms and conditions hereinafter
set forth.
NOW THEREFORE, in consideration of the premises hereof and
the work to be done by Utilities and the sums to be paid to
EXHIBIT "D-1"
Utilities by Developer as described hereafter, Developer and
Utilities agree as follows:
1. EXCLUSIVE SERVICE TO THE PROPERTY. Developer hereby
agrees and covenants that all improvements hereafter constructed
on the Property shall be served exclusively by Utilities' water
facilities, and Developer further agrees that this grant and
agreement shall be a covenant binding upon and running with title
to the Property. Utilities hereby agrees to make water service
available to the Development hereafter constructed on the
Property for the rates and under the conditions referred to in
this Agreement. Utilities agrees that such services shall be
made available through Utilities' facilities which Utilities has
or intends to construct, and through the facilities to be
constructed by Developer; provided, however, that if Utilities is
prevented by law or governmental regulation from constructing or
expanding plants and facilities, or from providing such water
service for any reason, Utilities shall have no liability to
Developer whatsoever except that Utilities shall be obligated to
return to Developer, without interest, any unearned contributions
or funds paid to Utilities by Developer hereunder, and this
Agreement shall thereupon be terminated. The parties hereto
acknowledge that this Agreement provides for only residential
service to the Property and in the event that service for
commercial use is required, such service shall be provided in
accordance with a separate utility agreement. Utilities further
agrees that the water service to be provided hereunder shall meet
the current standards or requirements, as the case may be, of all
state, local, and federal governmental agencies having
jurisdiction over Utilities; provided, however, that Utilities
shall not be responsible for any failure to meet or comply with
said standards or requirements to the extent that such failure
shall be occasioned by the inadequacy of the facilities to be
constructed by Developer; and further, the acceptance of any such
facilities by Utilities shall not be an admission of, or
`a
acceptance of such responsibility. Notwithstanding the
foregoing, Utilities shall not be responsible for furnishing fire
flows to the Property in excess of five hundred (500) gallons per
minute. Utilities hereby agrees to provide water service to the
Property six (6) months after the Developer shall make a written
request for such service to Utilities, but not before the off -
site and on -site improvements on the Property described in
Paragraphs 3 and 4 hereof, respectively, are completed in
accordance with this Agreement.
2. CONTRIBUTION -IN -AID -OF -CONSTRUCTION. The Developer
hereby agrees to contribute to Utilities for aid in construction
of plant facilities the sum of EIGHT HUNDRED SIXTY-FOUR AND
N0/100 DOLLARS ($864.00) for each single-family or multi -family
dwelling unit hereafter constructed on the Property, or the
amount approved by the Florida Public Service Commission at the
time of the payment thereof. Said contribution shall hereinafter
be referred to as.the "Connection Contribution." The Connection
Contribution is made up of the contributions -in -aid -of -
construction ("CIAC") approved by the Florida Public Service
Commission in the amount of FIVE HUNDRED FORTY AND N0/100 DOLLARS
($540.00), and the CIAC Tax Impact, in the amount of THREE
HUNDRED TWENTY-FOUR AND N0/100 DOLLARS ($324.00), which also has
been approved by the Florida Public Service Commission. The
amount of the CIAC Tax Impact shall be adjusted when the tax
effect of the Connection Contribution for the year it is paid is
determined by Utilities and, if the tax impact of the Connection
Contribution is less than the CIAC Tax Impact, a refund of such
difference shall be made to Developer. The Connection
Contributions shall be paid by Developer to Utilities in lump sum
increments. The first lump sum increment shall be in the amount
of EIGHTY-SIX THOUSAND FOUR HUNDRED AND N0/100 DOLLARS
($86,400.00). The first lump sum increment paid for Connection
Contributions shall apply to the first one hundred (100) dwelling
units on the Property. The first lump sum increment of
3
Connection Contributions, in the amount of EIGHTY-SIX THOUSAND
FOUR HUNDRED AND N0/100 DOLLARS ($86,400.00), shall be paid by
the Developer in cash or cashier's check, or other funds
acceptable to Utilities, at the time of the execution of this
Agreement. Trie.'other- lump,'sum. increments, in the amounts
required for the number of lots for which service is being
requested, shall be paid at the time the Developer first requests
service for additional lots. Utilities shall have no obligation
hereunder to advise any governmental authority by execution of
application, or otherwise, that it is providing service to lots
in the Property unless the Connection Contribution has been paid
for the lots subject to such advice. Under no circumstances
shall the Developer be entitled to any return of all, or any part
of, any lump sum increment paid for Connection Contribution as
described in this Paragraph 2 (unless Utilities shall be unable
to render services as described in Paragraph 1 hereof) and such
lump sum Connection Contribution may be used by the Developer
only with respect to units constructed on the Property. The
amount of the Connection Contribution shall be the amount
approved by the Florida Public Service Commission, and if the
amount initially approved for Utilities is lower than the amount
provided herein, appropriate refund and adjustment shall be
made. The Connection Contribution shall be in lieu of any other
tap -in or connection fees charged by Utilities, but not in lieu
of the following: (1) the cost of constructing off -site
improvements in accordance with Paragraph 3 hereof, which shall
be charged and paid in accordance with said Paragraph 3, (2) the
CIAC Tax Impact on any contributed property as described in
Paragraph 7 hereof, which shall be charged and paid in accordance
with said Paragraph 7 hereof, (3) the rates and guaranteed
revenue charges described in Paragraph 8 hereof, which shall be
charged and paid separately in accordance with Paragraph 8
hereof, or (4) meter installation fees as described in Paragraph
9 hereof, which will be charged and paid separately in accordance
4
with said Paragraph 9 hereof.
OFF -SITE IMPROVEMENTS. In order to provide water
Ga����Uo1
service to the Property, certain off -site improvements must be
constructed. These off -site improvements shall be those
improvements which are determined by Utilities, in its sole
discretion, to be necessary to transport water from Utilities'
plant, which will serve the Property, to the Property and shall
include all lines and mains. The off -site improvements which
must be constructed to serve the Property may be partially
constructed by the customers of Utilities prior to the time the
Developer requests service hereunder. At the time the Developer
requests service hereunder, and as a condition precedent to the
Utilities' obligation to provide service to the Property
hereunder, the Developer shall pay to Utilities the following:
(a) a share of the cost of constructing the then existing, or��
yN�
R!d
then under construction, off -site improvements which will serve
the Property; such share being that amount of such cost which was
the portion of such cost related to the over -sizing of such off -
site improvements to provide capacity for the Property, i.e., the
increase in the cost of such off -site improvements occasioned to
provide capacity to the Property, and (b) the cost of
constructing the additional off -site improvements necessary to
serve the Property, less any increase in such costs occasioned to
provide capacity for service to others. The additional off -site
`y±dhAl
of.�B
improvements shall be constructed by Utilities at Developer's
cost and expense; provided, however, Utilities, at its option,
may require Developer to construct such additional off -site
improvements, at Developer's cost and expense, in which case
Developer shall not be required to pay Utilities the sum
described in (b) in the previous sentence hereof. The off -site
improvements shall be constructed in accordance with plans and
specifications approved by Utilities and in accordance with all
requirements of Utilities and all applicable governmental and
regulatory authorities.
5
4. ON -SITE IMPROVEMENTS. As the Property is developed, the
Developer shall construct and install therein, at its own cost
and expense, all necessary on -site water facilities, including
generally all the water utility facilities of whatever nature or
kind needed to connect the Development to be constructed on the
Property to the existing lines of Utilities, and including
specifically, all lines, mains, laterals and service connections
to serve the Development to be constructed on the Property. The
Developer agrees that the construction and installation of such
on -site facilities shall be subject to the following:
A. The on -site facilities shall be constructed and
installed by Developer only after the approval of the plans
and specifications therefor by Utilities. The plans and
specifications shall be in accordance with the requirements
of Utilities and all applicable regulatory authorities, and
the Developer shall obtain approval thereof from such
agencies prior to commencement of construction.
B. The Developer, upon approval of the plans and
specifications by Utilities, as provided in subparagraph A
hereof, shall construct such on -site facilities strictly in
accordance with such plans and specifications. It shall keep
Utilities advised as to the progress of such construction and
shall afford Utilities the right to make inspection of said
construction; provided, however, Utilities shall have no duty
to make such inspections, and by making such inspections
shall incur no responsibility for the correct installation or
construction thereof.
5. INSPECTION. In addition to approving the plans and
specifications for on -site work to be accomplished by Developer,
Utilities may, at its option and without notification, inspect
such work as it progresses to determine -whether it is being
accomplished in accordance with said plans and specifications.
Such inspection shall be at the expense of Utilities; provided,
however, that upon request Developer shall make available for
11
inspection by Utilities any inspection or progress report
prepared by Developer's engineer or any engineer retained by a
lending institution in connection with a development or
construction mortgage loan on the Property (hereinafter referred
to as the "Engineer"). Such reports shall be made available
without cost to Utilities. Anything contained in this Paragraph
5 or done pursuant hereto notwithstanding, Utilities by
inspection or not inspecting, to any extent whatsoever, shall not
assume responsibility for construction or installation of on -site
improvements and shall in no way be considered to waive any
rights available to it for defaults on the part of Developer, or
to consent to any defects, omissions or failures in the on -site
work to be accomplished by Developer.
6. USE OF ON -SITE FACILITIES. At the time the Developer
desires to connect the on -site water facilities constructed by it
to Utilities' water systems with respect to any lot in the
Development, and as a condition precedent for the right to make
such connection, the Developer shall convey to Utilities, at no
cost to Utilities, such of the on -site facilities as Utilities
shall require including specifically, but not as a limitation,
water lines, mains, laterals and connections. Such conveyance
shall be by bill of sale, warranty deed or other appropriate
instrument as determined by Utilities, in its sole discretion,
and shall be free and clear of all liens and encumbrances
whatsoever. In the event that on -site water facilities have been
connected to Utilities' water systems without said conveyance,
the requirement to convey said facilities to Utilities shall not
be waived and Utilities may thereafter, at any time, require the
conveyance of such facilities. In the event that the Developer
is unable or unwilling to convey to Utilities such facilities for
any reason whatsoever, Utilities shall have the option to
terminate this Agreement. Notwithstanding the foregoing,
Utilities shall not be required to accept such conveyance, or
undertake the maintenance of any portion of the on -site
7
facilities which it shall, in its sole discretion, decide to
leave as the property of, and the responsibility of, the
Developer. In addition, Utilities shall not be obligated to make
any connections until Utilities has received the Engineer's
certification that all construction has been performed in
substantial conformance with the engineering plans and that all
tests required by the Engineer and by Utilities have been
satisfactorily performed, and necessary approvals for use have
been received from the Florida Department of Environmental
Regulation or other governmental bodies responsible for the
issuance of such approvals. The cost of all materials,
construction tests and testing and installation for on -site water
facilities and line extensions shall be paid in full by the
Developer prior to the transfer to Utilities. By conveyance of
the on -site facilities, the Developer shall be deemed to have
represented and warranted to Utilities (1) that all costs
therefor have been paid in full and that Developer will furnish
to Utilities such evidence thereof as it may reasonably require,
and (2) that said on -site facilities have been constructed in a
good and workmanlike manner, free from all defects, and that
Developer will correct any defect occurring or discovered in said
facilities within a period of one (1) year from the date of such
conveyance.
7. CIAC Tax Impact of Off -Site and On -Site Improvements.
At the time that the Developer shall pay Utilities for the cost
of off -site improvements as described in Paragraph 3 hereof, and
at the time that the Developer shall convey to Utilities the on -
site improvements described in Paragraph 4 hereof in accordance
with Paragraph 6 hereof, Developer shall pay to Utilities, in
cash, the CIAC Tax Impact approved by the Florida Public Service
Commission with respect thereto. The CIAC Tax Impact is intended
to be a sum of money equal to the State and Federal Income Tax
effect on Utilities of such payment or conveyance, and of the
payment of the CIAC Tax Impact itself. The amount currently
8
approved by the Florida Public Service Commission is sixty
percent (60%) of the cost of the facilities contributed or the
cash paid. Said amount is subject to adjustment and refund to
the extent it is more than the actual tax impact on the Utilities
of such payment or contribution. Utilities shall not be
obligated to construct any off -site facilities or provide any
services hereunder until all CIAC Tax Impact charges due
hereunder have been paid to Utilities. At the time that
Developer shall request service hereunder, pay for off -site
improvements, or convey on -site improvements, Utilities shall
advise Developer of the amount of the CIAC Tax Impact due
Utilities from Developer hereunder.
8. RATES AND GUARANTEED REVENUE CHARGES. The rates to be
charged by Utilities for water service to the Developer for water
service to the Development hereafter built on the Property, and
guaranteed revenue charges, shall be those charges made by
Utilities to its other customers and those charges from time to
time agreed on by and between the Florida Public Service
Commission, or any other governmental regulatory body from time
to time having jurisdiction over such matters. The rates shall
be the charges for water service provided to the Property. The
guaranteed revenue charges shall be the payment to Utilities by
Developer for capacity reserved but not being used by an active
customer. The Developer shall begin paying guaranteed revenue
charges at the time Developer shall request Utilities to provide
water service to the Property. The Developer shall be obligated
to pay such charges only on those lots for which Developer pays
CIAC and shall continue to pay such charges on each lot from the
time of such payment until an active customer is connected on
such lot. The current guaranteed revenue charge of Utilities is
EIGHT AND 64/100 DOLLARS ($8.64) per lot per month. Utilities
reserves the right to withhold or disconnect service, or to
refuse to give or provide new or additional service, at any tame
the charges are not paid on a current basis within twenty-five
9
(25) days after the same are billed; provided that written
notification of such delinquency has been made by Utilities to
the record owner of the lot or living unit being served. The
Developer or record owner of the lot or living unit being served
by Utilities, as the case may be, hereby agrees to save and hold
harmless Utilities for any loss or damages resulting from the
exercise of this right. Moreover, the service to the Development
shall be subject to such other regulations from time to time
imposed on Utilities with respect to the operations of its water
systems, and except as limited by such regulations, the amounts
of utility deposits, billing practices and times, liability for
damage to Utilities' Property and rate changes shall be
exclusively within the discretion and control of Utilities.
9. WATER METERS. It is hereby agreed by the parties hereto
that Utilities shall install a water meter or water meters as
Utilities should deem to be necessary to serve the Development
and the Property. Utilities shall have the right to designate
the number, type, quality and size of said meter or meters. The
cost for said water meter or water meters and the labor charges
associated with its installation shall be paid to Utilities by
Developer prior to installation of each such meter at the rate
from time to time approved by the Florida Public Service
Commission or any other governmental regulatory body from time to
time having jurisdiction over such matters. Said sum shall be
due and payable prior to the time of installation of said meter
or meters. All water meters so installed shall remain the
property of Utilities.
10. PLATS. All plats of the Property, or portions thereof,
filed among the Public Records of Lake County, Florida, or any
other governmental unit, shall provide for such dedicated utility
easements as may be reasonable and necessarily required for the
purpose of serving the Property, or portions thereof, with the
water and sewer service to be provided hereunder.
11. NOTICES. Payments required to be made under the terms
10
hereof and notices permitted, or required to be made under the
terms hereof, shall be delivered to the parties at the respective
addresses:
Utilities: LAKE HILLS UTILITIES,, INC.
Post Office Box 3873
Longwood, Florida 32750
Developer: THE GREATER CONSTRUCTION
CORPORATION
Post Office Box 3873
Longwood, Florida 32750
Any notices required or permitted hereunder shall be considered
properly made if in writing and mailed by United States Mail,
postage prepaid, to the addresses set forth herein.
12. TERM. The term of this Agreement shall be for a period
of thirty (30) years from the date hereof, and from year to year
thereafter. After the initial thirty (30) year term, either
party hereto shall have the right to terminate this Agreement
upon one (1) year's prior written notice of such termination.
13. MISCELLANEOUS.
A. Time is hereby made of the essence of this
Agreement in all respects.
B. This Agreement constitutes the entire agreement of
the parties and expressly supersedes all negotiations,
previous agreements or representations whether verbal or
written, and may not be amended in any way whatsoever except
by a writing executed by both parties hereto in a manner
equal in dignity to the execution of this Agreement.
C. This Agreement shall inure to the benefit of and be
binding upon the heirs, successors, personal representatives
and assigns of the parties hereto and shall constitute a
covenant running with the Property.
D. This Agreement shall be governed by the laws of the
State of Florida.
E. This Agreement shall be effective upon proper
execution by both parties hereto.
F. This Agreement shall be executed in several
counterparts each of which if properly executed by both
11
parties shall be considered an original.
IN WITNESS WHEREOF,• the parties hereto have caused these
presents to be executed in their names and their seals to be
hereunto affixed, by their proper officers thereunto duly
authorized, on the day an year first above written.
Sig
in
1
ed
LAKE HILL UTILI IES, INC.
By:
Lester N. Mandell, Presi en
"UTILITIES"
THE GREATER CONSTRUCTION
CORPORATION
By: jjk
Ro ert A. Mand ll, Presl ent
"DEVELOPER"
STATE OF FLORIDA
COUNTY OF ORANGE
The foregoing instrument was acknowledged before me this
day of , 1989 by Lester N. Mandell, President o
LAKE HILLS GJTILITIES, INC., a Florida corporation, on behalf of
the corporation.
Notary Public
My Commission Expires:
STATE OF FLORIDA
COUNTY OF ORANGE Notary Public, State of Florida
My Commission expires Oct. 10, 1992
The foregoinq instrument was acknowledged before me this
day of , 1989, by Robert A. Mandell, as Presid ent
of THE GR ER CONSTRUCTION CORPORATION, a Florida corporation,
on behalf of the Corporation.
Notary Public
My Commission Expires:
Notary Public, State of Florida
My Commission expires Oct. 10, 1992
1-B008-d 12 (08/02/89)
EXHIBIT "A"
to Utility Agreement by and between
Lake Hills Utilities, Inc. and
The Greater Construction Corporation
TRACT I:
The Southeast 1/4 of the Northeast 1/4 and the North 1/2 of the
Southeast 1/4 of Section 22, Township 22 South, Range 26 East,
Lake County, Florida.
TRACT II:
The Southwest 1/4 of the Northeast 1/4 of Section 22, Township 22
South, Range 26 East, Lake County, Florida.
Tract III:
All that part of the Southwest 1/4 of the Southwest 1/4 of the
Southeast 1/4 of Section 15, Township 22 South, Range 26 East;
and all that part of the North 1/2 of the Northeast 1/4 of
Section 22, Township 22 South, Range 26 East lying South of the
Right -of -Way of existing highway, being also described as East
Clermont Subdivision, according to the Plat thereof recorded in
Plat Book 8, Page 73, Public Records of Lake County, Florida.
Tract IV:
The Southwest 1/4 of the Southeast 1/4 lying East of the existing
Railroad Right -of -Way and the Southeast 1/4 of the Southeast 1/4,
all in Section 22, Township 22 South, Range 26 East, Lake County,
Florida.
Tract V:
A tract of land being a portion of Section 27, Township 22 South,
Range 26 East, Lake County, Florida, being more particularly
described as follows: Commence at the Northeast corner of
Section 27; thence North 88048121" West along the North line of
Section 27 for a distance of 1272.09 feet to the Point of
Beginning; thence South 00034110" West along a line 34.15 feet
East of and parallel to the West line of the Northeast 1/4 of the
Northeast 1/4 of Section 27, a distance of 1154.16 feet, more or
less, to a point on the North Right -of -Way of State Road #50;
thence West along the North Right -of -Way of State Road #50 for a
distance of 600.03 feet; thence North 00034'10" East along a line
565.85 feet West of and parallel to the West line of the
Northeast 1/4 of the Northeast 1/4 of Section• 27 for a distance
of 1155.74 feet, more or less, to a point on the North line of
the Northeast 1/4 of Section 27; thence South 88048'21" East
along the North line of the Northeast 1/4 of Section 27 for a
distance of 600.00 feet, more or less, to the Point of
Beginning. Containing 15.91 acres, more or less.
Total Acres: 312.7+
1-I006-d
(08-02-89)
UTILITY AGREEMENT
9
THIS UTILITY AGREEMENT dated this / 'day of ,
1989, by and between LAKE HILLS UTILITIES, INC., a Florida
corporation (hereinafter referred to as "Utilities"), and LAKE
EQUITY ASSOCIATES, a Florida general partnership, between general
partners, Mario Mozzillo and Dorick Mauro (hereinafter referred
to as the "Developer").
PREMISES
WHEREAS, Developer is the owner or contract purchaser of
certain tracts of real property situate in Lake County, Florida,
described with particularity in Exhibit "A" attached hereto and
made a part hereof, which property is hereinafter referred to as
the "Property"; and
WHEREAS, Developer intends to develop and improve the
Property into a residential area containing one hundred fifty
(150) single-family residential lots (hereinafter referred to as
the "Development"); and
WHEREAS, in connection with the Development it is necessary
for the Developer to obtain adequate water service; and
WHEREAS, Utilities intends to be the owner and operator of
water production and distribution facilities which are to serve
real property in close proximity to the Property; and
WHEREAS, the Developer has agreed to pay Utilities a
Cons-r:ibution-in-Aid-of-Construction as hereinafter defined and
other charges set forth herein to induce Utilities to provide
wixtei service to the Property; and
WHEREAS, as a condition Lj;tcedent to providiro-T s:�c:t 5rr.vi.c^e
the Developer has agreed to construct at its c:wn coke: ana expense
certain facilities as more particularly described hereinafter;
and
WHEREAS, Utilities has agreed to make its water facilities
available to the Property on the terms and conditions hereinafter
set forth.
NOW THEREFORE, in consideration of the premises hereof and
EXHIBIT "D-2"
the work to be done by Utilities and the sums to be paid to
Utilities by. Developer as described hereafter, Developer and
Utilities agree as follows:
1. EXCLUSIVE SERVICE TO THE PROPERTY. Developer hereby
agrees and covenants that all improvements hereafter constructed
on the Property shall be served exclusively by Utilities' water
facilities, and Developer further agrees that this grant and
agreement shall be a covenant binding upon and running with title
to the Property. Utilities hereby agrees to make water service
available to the Development hereafter constructed on the
Property for the rates and under the conditions referred to in
this Agreement. Utilities agrees that such services shall be
made available through Utilities' facilities which Utilities has
or intends to construct, and through the facilities to be
constructed by Developer; provided, however, that if Utilities is
prevented by law or governmental regulation from constructing or
expanding plants and facilities, or from providing such water
service for any reason, Utilities shall have no liability to
Developer whatsoever except that Utilities shall be obligated to
return to Developer, without interest, any unearned contributions
or funds paid to Utilities by Developer hereunder, and this
Agreement shall thereupon be terminated. The parties hereto
acknowledge that this Agreement provides for only residential
service to the Property and in the event that service for
commercial use is required, such service shall be provided in
accordance with a separate utility agreement. Utilities further
agrees that the water service to be provided hereunder shall meet
the current standards or requirements, as the case may be, of all
state, local, and federal governmental agencies having
jurisdiction over Utilities; provided, however, that Utilities
shall not be respbnsible for any failure to meet or comply with
said standards or requirements to the extent that such failure
shall be occasioned by the inadequacy of the facilities to be
constructed by Developer; and further, the acceptance of any such
2
facilities by Utilities shall not be an admission of, or
acceptance of such responsibility. Notwithstanding the
foregoing, Utilities shall not be responsible for furnishing fire
flows to the Property in excess of five hundred (500) gallons per
minute. Utilities hereby agrees to provide water service to the
Property six (6) months after the Developer shall make a written
request for such service to Utilities, but not before the off -
site and on -site improvements on the Property described in
Paragraphs 3 and 4 hereof, respectively, are completed in
accordance with this Agreement.
2. CONTRIBUTION -IN -AID -OF -CONSTRUCTION. The Developer
hereby agrees to contribute to Utilities for aid in construction
of plant facilities the sum of EIGHT HUNDRED SIXTY-FOUR AND
N0/100 DOLLARS ($864.00) for each single-family or multi -family
dwelling unit hereafter constructed on the Property, or the
amount approved by the Florida Public Service Commission at the
time of the payment thereof. Said contribution shall hereinafter
be referred to as the "Connection Contribution." The Connection
Contribution is made up of the contributions -in -aid -of -
construction ("CIAC") approved by the Florida Public Service
Commission in the amount of FIVE HUNDRED FORTY AND NO,/100 DOLLARS
($540.00), and the CIAC Tax Impact, in the amount of THREE
HUNDRED TWENTY-FOUR AND N0/100 DOLLARS ($324.00), which also has
been approved by the Florida Public Service Commission. The
amount of the CIAC Tax Impact shall be adjusted when the tax
effect of the Connection Contribution for the year it is paid is
determined by Utilities and, if the tax impact of the Connection
Contribution is less than the CIAC Tax Impact, a refund of such
difference shall be made to Developer. The Connection
Contributions shall be paid by Developer to Utilities in lump sum
increments. The 1-ump sum increment shall be in the amount of ONE
HUNDRED TWENTY-NINE THOUSAND SIX HUNDRED AND N0/100 DOLLARS
($129,600.00). The lump sum increment paid for Connection
Contributions shall apply to the first one hundred fifty (150)
3
dwelling units on the Property. A portion of the lump sum
increment of Connection Contributions, in the amount of FIFTY
THOUSAND AND N0/100 DOLLARS ($50,000.00), shall be paid by the
Developer in cash or cashier's check, or other funds acceptable
to Utilities, at the time of the execution of this Agreement; the
remaining portion of the lump sum increment, in the amount of
SEVENTY-NINE THOUSAND SIX HUNDRED AND N0/100 DOLLARS ($79,600.00)
shall be paid by the Developer at the time the Developer requests
service hereunder in accordance with Paragraph 1 hereof.
Utilities shall have no obligation hereunder to advise any
governmental authority by execution of application, or otherwise,
that it is providing service to lots in the Property unless the
Connection Contribution has been paid for the lots subject to
such advice. Under no circumstances shall the Developer be
entitled to any return of all, or any part of, any lump sum
increment paid for Connection Contribution as described in this
Paragraph 2 (unless Utilities shall be unable to render services
as described in Paragraph 1 hereof) and such lump sum Connection
Contribution may be used by the Developer only with respect to
units constructed on the Property. The amount of the Connection
Contribution shall be the amount approved by the Florida Public
Service Commission, and if the amount initially approved for
Utilities is lower than the amount provided herein, appropriate
refund and adjustment shall be made. The Connection Contribution
shall be in lieu of any other tap -in or connection fees charged
by Utilities, but not in lieu of the following: (1) the cost of
constructing off -site improvements in accordance with Paragraph 3
hereof, which shall be charged and paid in accordance with said
Paragraph 3, (2) the CIAC Tax Impact on any contributed property
as described in Paragraph 7 hereof, which shall be charged and
paid in accordance with said Paragraph 7 hereof, (3) the rates
and guaranteed revenue charge described in Paragraph 8 hereof,
which shall be charged and paid separately in accordance with
Paragraph 8 hereof, or (4) meter installation fees as described
4
in Paragraph 9 hereof, which will be charged and paid separately
in accordance with said Paragraph 9 hereof.
3. OFF -SITE IMPROVEMENTS. In order to provide water
service to the Property, certain off -site improvements must be
constructed. These off -site improvements shall be those
improvements which are determined by Utilities, in its sole
discretion, to be necessary to transport water from Utilities'
plant, which will serve the Property, to the Property and shall
include all lines and mains. The off -site improvements which
must be constructed to serve the Property may be partially
constructed by the customers of Utilities prior to the time the
Developer requests service hereunder. At the time the Developer
requests service hereunder, and as a condition precedent to the
Utilities' obligation to provide service to the Property
hereunder, the Developer shall pay to Utilities the following:
(a)• a share of the cost of constructing the then existing, or
then under construction, off -site improvements which will serve
the Property; such share being that amount of such cost which was
the portion of such cost related to the over -sizing of such off -
site improvements to provide capacity for the Property, i.e., the
increase in the cost of such off -site improvements occasioned to
provide capacity to the Property, and (b) the cost of
constructing the additional off -site improvements necessary to
serve the Property, less any increase in such costs occasioned to
provide capacity for service to others. The additional off -site
improvements shall be constructed by Utilities at Developer's
cost and expense; provided, however, Utilities, at its option,
may require Developer to construct such additional off -site
improvements, at Developer's cost and expense, in which case
Developer shall not be required to pay Utilities the sum
described in (b) 'in the previous sentence hereof. The off -site
improvements shall be constructed in accordance with plans and
specifications approved by Utilities and in accordance with all
requirements of Utilities and all applicable governmental and
5
regulatory authorities.
4. ON -SITE IMPROVEMENTS. As the Property is developed, the
Developer shall construct and install therein, at its own cost
and expense, all necessary on -site water facilities, including
generally all the water utility facilities of whatever nature or
kind needed to connect the Development to be constructed on the
Property to the existing lines of Utilities, and including
specifically, all lines, mains, laterals and service connections
to serve the Development to be constructed on the Property. The
Developer agrees that the construction and installation of such
on -site facilities shall be subject to the following:
A. The on -site facilities shall be constructed and
installed by Developer only after the approval of the plans
and specifications therefor by Utilities. The plans and
specifications shall be in accordance with the requirements
of Utilities and all applicable regulatory authorities, and
the Developer shall obtain approval thereof from such
agencies prior to commencement of construction.
B. The Developer, upon approval of the plans and
specifications by Utilities, as provided in subparagraph A
hereof, shall construct such on -site facilities strictly in
accordance with such plans and specifications. It shall keep
Utilities advised as to the progress of such construction and
shall afford Utilities the right to make inspection of said
construction; provided, however, Utilities shall have no duty
to make such inspections, and by making such inspections
shall incur no responsibility for the correct installation or
construction thereof.
5. INSPECTION. In addition to approving the plans and
specifications for on -site work to be accomplished by Developer,
Utilities may, at, its option and without notification, inspect
such work as it progresses to determine whether it is being
accomplished in accordance with said plans and specifications.
Such inspection shall be at the expense of Utilities; provided,
6
however, that upon request Developer shall make available for
inspection by Utilities any inspection or progress report
prepared by Developer's engineer or any engineer retained by a
lending institution in connection with a development or
construction mortgage loan on the Property (hereinafter referred
to as the "Engineer"). Such reports shall be made available
without cost to Utilities. Anything contained in this Paragraph
S or done pursuant hereto notwithstanding, Utilities by
inspection or not inspecting, to any extent whatsoever, shall not
assume responsibility for construction or installation of on -site
improvements and shall in no way be considered to waive any
rights available to it for defaults on the part of Developer, or
to consent to any defects, omissions or failures in the on -site
work to be accomplished by Developer.
6. USE OF ON -SITE FACILITIES. At the time the Developer
desires to connect the on -site water facilities constructed by it
to Utilities' water systems with respect to any lot in the
Development, and as a condition precedent for the right to make
such connection, the Developer shall convey to Utilities, at no
cost to Utilities, such of the on -site facilities as Utilities
shall require including specifically, but not as a limitation,
water lines, mains, laterals and connections. Such conveyance
shall be by bill of sale, warranty deed or other appropriate
instrument as determined by Utilities, in its sole discretion,
and shall be free and clear of all liens and encumbrances
whatsoever. In the event that on -site water facilities have been
connected to Utilities' water systems without said conveyance,
the requirement to convey said facilities to Utilities shall not
be waived and Utilities may thereafter, at any time, require the
conveyance of such facilities. In the event that the Developer
is unable or unwilling to convey to Utilities such facilities for
any reason whatsoever, Utilities shall have the option to
terminate this Agreement. Notwithstanding the foregoing,
Utilities shall not be required to accept such conveyance, or
7
undertake the maintenance of any portion of the on -site
facilities which it shall, in its sole discretion, decide to
leave as the property of, and the responsibility of, the
Developer. In addition, Utilities shall not be obligated to make
any connections until Utilities has received the Engineer's
certification that all construction has been performed in
substantial conformance with the engineering plans and that all
tests required by the Engineer and by Utilities have been
satisfactorily performed, and necessary approvals for use have
been received from the Florida Department of Environmental
Regulation or other governmental bodies responsible for the
issuance of such approvals. The cost of all materials,
construction tests and testing and installation for on -site water
facilities and line extensions shall be paid in full by the
Developer prior to the transfer to Utilities. By conveyance of
the on -site facilities, the Developer shall be deemed to have
represented and warranted to Utilities (1) that all costs
therefor have been paid in full and that Developer will furnish
to Utilities such evidence thereof as it may reasonably require,
and (2) that said on -site facilities have been constructed in a
good and workmanlike manner, free from all defects, and that
Developer will correct any defect occurring or discovered in said
facilities within a period of one (1) year from the date of such
conveyance.
7. CIAC Tax Impact of Off -Site and On -Site Improvements.
At the time that the Developer shall pay Utilities for the cost
of off -site improvements as described in Paragraph 3 hereof, and
at the time that the Developer shall convey to Utilities the on -
site improvements described in Paragraph 4 hereof in accordance
with Paragraph 6 hereof, Developer shall pay to Utilities, in
cash, the CIAC Tax Impact approved by the Florida Public Service
Commission with respect thereto. The CIAC Tax Impact is intended
to be a sum of money equal to the State and Federal Income Tax
effect on Utilities of such payment or conveyance, and of the
8
payment of the CIAC Tax Impact itself. The amount currently
approved by the Florida Public Service Commission is sixty
percent (60%) of the cost of the facilities contributed or the
cash paid. Said amount is subject to adjustment and refund to
the extent it is more than the actual tax impact on the Utilities
of such payment or contribution. Utilities shall not be
obligated to construct any off -site facilities or provide any
services hereunder until all CIAC Tax Impact charges due
hereunder have been paid to Utilities. At the time that
Developer shall request service hereunder, pay for off -site
improvements, or convey on -site improvements, Utilities shall
advise Developer of the amount of the CIAC Tax Impact due
Utilities from Developer hereunder.
B. RATES AND GUARANTEED REVENUE CHARGES. The rates to be
charged by Utilities for water service to the Developer for water
service to the Development hereafter built on the Property, and
guaranteed revenue charges, shall be those charges made by
Utilities to its other customers and those charges from time to
time agreed on by and between the Florida Public Service
Commission, or any other governmental regulatory body from time
to time having jurisdiction over such matters. The rates shall
be the charges for water service provided to the Property. The
guaranteed revenue charges shall be the payment to Utilities by
Developer for capacity reserved but not being used by an active
customer. The Developer shall begin paying guaranteed revenue
charges at the time Developer shall request Utilities to provide
water service to the Property. The Developer shall be obligated
to pay such charges only on those lots for which Developer pays
CIAC and shall continue to pay such charges on each lot from the
time of such payment until an active customer is connected on
such lot. The cu=rent guaranteed revenue charge of Utilities is
EIGHT AND 64/100 DOLLARS ($8.64) per lot per month. Utilities
reserves the right to withhold or disconnect service, or to
refuse to give or provide new or additional service, at any time
9
the charges are not paid on a current basis within twenty-five
(25) days after the same are billed; provided that written
notification of such delinquency has been made by Utilities to
the record owner of the lot or living unit being served. The
Developer or record owner of the lot or living unit being served
by Utilities, as the case may be, hereby agrees to save and hold
harmless Utilities for any loss or damages resulting from the
exercise of this right. Moreover, the service to the Development
shall be subject to such other regulations from time to time
imposed on Utilities with respect to the operations of its water
systems, and except as limited by such regulations, the amounts
of utility deposits, billing practices and times, liability for
damage to Utilities' Property and rate changes shall be
exclusively within the discretion and control of Utilities.
9. WATER METERS. It is hereby agreed by the parties hereto
that Utilities shall install a water meter or water meters as
Utilities should deem to be necessary to serve the Development
and the Property. Utilities shall have the right to designate
the number, type, quality and size of said meter or meters. The
cost for said water meter or water meters and the labor charges
associated with its installation shall be paid to Utilities by
Developer prior to installation of each such meter at the rate
from time to time approved by the Florida Public Service
Commission or any other governmental regulatory body from time to
time having jurisdiction over such matters. Said sum shall be
due and payable prior to the time of installation of said meter
or meters. All water meters so installed shall remain the
property of Utilities.
10. INCLUSION IN SERVICE AREA. Upon the execution of this
Agreement, Utilities shall petition the Florida Public Service
Commission for permission to include the Property in Utilities'
service area as 'approved by the Florida Public Service
Commission. In the event that the Florida Public Service
Commission shall fail to approve and grant said petition to
10
include the Property in Utilities' service area within six (6)
months from the date hereof, either party hereto shall have the
right to terminate this Agreement at any time until the Property
is included in the said service area or service is actually
rendered hereunder. Upon such termination, Utilities shall
refund all sums paid to it by Developer hereunder without
interest.
11. PLATS. All plats of the Property, or portions thereof,
filed among the Public Records of Lake County, Florida, or any
other governmental unit, shall provide for such dedicated utility
easements as may be reasonable and necessarily required for the
purpose of serving the Property, or portions thereof, with the
water and sewer service to be provided hereunder.
12. NOTICES. Payments required to be made under the terms
hereof and notices permitted, or required to be made under the
terms hereof, shall be delivered to the parties at the respective
addresses:
Utilities: LAKE HILLS UTILITIES, INC.
Post Office Box 3873
Longwood, Florida 32750
Developer: LAKE EQUITY ASSOCIATES
c/o Mario L. Mozzillo
32 Gould Lane
Branford, Connecticut 06405
Any notices required or permitted hereunder shall be considered
properly made if in writing and mailed by United States Mail,
postage prepaid, to the addresses set forth herein.
13. TERM. The term of this Agreement shall be for a period
of thirty (30) years from the date hereof, and from year to year
thereafter. After the initial thirty (30) year term, either
party hereto shall have the right to terminate this Agreement
upon one (1) year's prior written notice of such termination.
14. MISCELLANEOUS.
A. Time is hereby made of the essence of this
Agreement in all respects.
B. This Agreement constitutes the entire agreement of
the parties and expressly supersedes all negotiations,
M
previous agreements or representations whether verbal or
written, and may not be amended in any way whatsoever except
by a writing executed by both parties hereto in a manner
equal in dignity to the execution of this Agreement.
C. This Agreement shall inure to the benefit of and be
binding upon the heirs, successors, personal representatives
and assigns of the parties hereto and shall constitute a
covenant running with the Property.
D. This Agreement shall be governed by the laws of the
State of Florida.
E. This Agreement shall be effective upon proper
execution by both parties hereto.
F. This Agreement shall be executed in several
counterparts each of which if properly executed by both
parties shall be considered an original.
IN WITNESS WHEREOF, the parties hereto have caused these
presents to be executed in their names and their seals to be
hereunto affixed, by their proper officers thereunto duly
authorized, on the day and year first above written.
Signed, sealed and delivered
in the presence of: LAKE HILLS UTILI ES, INC.
Lester N. Mandell, President
�G2CQ/
UTILITIES
LAKE EQUITY ASSOCIATES
By: li", j '�'di"
Mari oz illo IGeneral Partner
Dorick Mauro,'General Partner
DEVELOPER
STATE OF FLORIDA
COUNTY OF
The foregoing instrument was acknowledged before me this
12
day of (Q.f , 1989 by Lester N. Mandell, President of
LAKE HILLS' UTILITIES, INC., a Florida corporation, on behalf of
the corporation.
Notary Public
My Commission Expires: BG6, i0, lQyZ
STATE OF F! 9P A Uyv�
COUNTY OF Ua,
The foreg in instrument was acknowledged before me this l10
�
day of 4,v 1989, by Mario Mozzillo
as General Rartnere of LAKE EQUITY ASSOCIATES, a Florida general
partnership, on behalf of the partnership.
ary Publ c
Commission Expires: /11"`431'a90
STATE OF MASSACHUSETTS
CO OF MIDDLESEX
fo e_oing instrument was achnowledged before me this (day
o ` 1989, by Dorick V. Mauro as General Partner of LAKE EOUITY
ASSOC TES, a Floria general partnership, on behalf of the partnership.
ota4 Public
M Commission Expires My Gomniiulon ixvirol 7ulx 5, WA
1-BO07-d 13 (9-5-89)
EXHIBIT "A"
ATTACHED TO AND MADE A PART OF AGREEMENT
BETWEEN LAKE HILLS UTILITIES, INC., AND
LAKE EQUITY ASSOCIATES
COMMENCE at the northwest corner of Section 23, Township 22
South, Range 26 East, Lake County, Florida, and run South along
the west line of said Section 23 a distance of 652.41 feet to a
point on the southerly right of way line of Old Highway 50 for a
POINT OF BEGINNING; thence North 84°34'24" East along said
southerly right of way line 747.72 feet; thence continue along
said southerly right of way line South OS°[5'36" East 10.00
feet; thence continue along said southerly right of way line
North 84°34'24" East 219.47 feet to the oeginning of a curve
concave Southerly having a radius of 713.94 feet and a central
angel of 41054'00"; thence Easterly along said curve and along
said Southerly right of way line an arc distance of 596.86 feet
to the end of said curve; thence South 47031'36" East along said
southerly right of way line 441.32 feet to the beginning of a
curve concave Northeasterly having a radius of 4069.42 feet and
a central angle of 04'12'02"; thence Southeasterly along said
curve and along said southerly right of way line an arc distance
of 298.34 feet to the end of said curve; thence continue along
said southerly right of way line South 51'43'38" East 603.3U
feet to the beginning of a curve concave Southwesterly having a
radius of 143.07 feet; thence Southeasterly along said curve and
along said southerly right of way line an arc distance of 126.58
feet to the end of said curve at a point on the west right of
way line of State Road Number 455; thence South 05*08'40" East
108.05 feet; thence continuing along said west right of way
line, South 00'14'04" East 735.08 feet to a point on a line 35
feet North from and parallel with the south line of the
Northwest Quarter of said Section 23; thence South 89'38'35"
Nest along said parallel line 490.00 feet; thence run South
00°14'04" East 20.00 feet; thence South 89038'35" west along a
line which is 15 feet North from and parallel with the south
line of said Northwest Quarter a distance of 2117.11 feet to a
point on the west line of said Section 23; thence North along
said west line 1959.34 feet to the point of beginning. AND the
north half of Tracts 38 b 39 of LAKE HIGHLANDS COMPANY
subdivision recorded in Plat Book 4, Page 11 of the Public
Records of Lake County, Florida. Contains 112.03 acres, more or
less.
Being part of Tracts 9, 10, 11, 12, 21, 22, 23, 24, 25, 26, 27
and 28 and all of the north half of Tracts 38 and 39 of LAKE
HIGHLANDS COMPANY subdivision recorded in Plat Book 4, Page 11,
Public Records of Lake County, Florida.
Note: The platted rights of way in the NW 1/4 lying South and
Kest of the highways (Old Highway 50 and S.R. no. 455) except
along the south boundary of said NW 1/4 were closed and vacated
by Lake County Resolution - O.R. 937, Pg 1534.
Note: Bearings shown hereon are based upon the west Boundary
Section 23, T22S, R26E, having an assumed due South bearing.
Initialed for Identification
Utilities:
Developer: LZ
1-$007-d 14 (9-75-89)
UTILITY AGREEMENT
THIS UTILITY AGREEMENT dated this 1::�:day of 'I ,
1990, by and between LAKE HILLS UTILITIES, INC., a Florida
corporation (hereinafter referred to as "Utilities"), and DONALD
GUBER and ANN GUBER, AS TRUSTEES under the provisions of that
certain Donald Guber Family Trust Agreement dated April 18, 1978,
as amended (hereinafter referred to as the "Developer").
PREMISES
WHEREAS, Developer is the owner of certain tracts of real
property situate in Lake County, Florida, described with
particularity in Exhibit "A" attached hereto and made a part
hereof, which property is hereinafter referred to as the
"Property"; and
WHEREAS, Developer intends to develop and improve the
Property into a residential area containing approximately four
hundred two (402) single-family residential lots (hereinafter
referred to as the "Development"); and
WHEREAS, in connection with the Development it is necessary
for the Developer to obtain adequate water service; and
WHEREAS, Utilities intends to be the owner and operator of
water production and distribution facilities which are to serve
real property in close proximity to the Property; and
WHEREAS, the Developer has agreed to pay Utilities a
Contribution -in -Aid -of -Construction as hereinafter defined and
other charges set forth herein to induce Utilities to provide
water service to the Property; and
WHEREAS, as a condition precedent to providing such service
the Developer has agreed to construct at its own cost and expense
certain facilities as more particularly described hereinafter;
and
WHEREAS, Utilities has agreed to make its water facilities
available to the Property on the terms and conditions hereinafter
set forth.
NOW THEREFORE, in consideration of the premises hereof and
EXHIBIT "D-3"
the work to be done by Utilities and the sums to be paid to
Utilities by Developer as described hereafter, Developer and
Utilities agree as follows:
1. EXCLUSIVE SERVICE TO THE PROPERTY. Developer hereby
agrees and covenants that all improvements hereafter constructed
on the Property shall be served exclusively by Utilities' water
facilities, and Developer further agrees that this grant and
agreement shall be a covenant binding upon and running with title
to the Property. Utilities hereby agrees to make water service
available to the Development hereafter constructed on the
Property for the rates and under the conditions referred to in
this Agreement. Utilities agrees that such services shall be
made available through Utilities' facilities which Utilities has
or intends to construct, and through the facilities to be
constructed by Developer; provided, however, that if Utilities is
prevented by law or governmental regulation from constructing or
expanding plants and facilities, or from providing such water
service for any reason, Utilities shall have no liability to
Developer whatsoever except that Utilities shall be obligated to
return to Developer, without interest, any unearned contributions
or funds paid to Utilities by Developer hereunder, and this
Agreement shall thereupon be terminated. The parties hereto
acknowledge that this Agreement provides for only residential
service to the Property and in the event that service for
commercial use is required, such service shall be provided in
accordance with a separate utility agreement. Utilities further
agrees that the water service to be provided hereunder shall meet
the current standards or requirements, as the case may be, of all
state, local, and federal governmental agencies having
jurisdiction over Utilities; provided, however, that Utilities
shall not be responsible for any failure to meet or comply with
said standards or requirements to the extent that such failure
shall be occasioned by the inadequacy of the facilities to be
constructed by Developer; and further, the acceptance of any such
2
facilities by Utilities shall not be an admission of, or
acceptance of such responsibility. Notwithstanding the
foregoing, Utilities shall not be responsible for furnishing fire
flows to the Property in excess of five hundred (500) gallons per
minute. Utilities hereby agrees to provide water service to the
Property within nine (9) months after the Developer shall make a
written request for such service to Utilities, but not before the
off -site and on -site improvements on the Property described in
Paragraphs 3 and 4 hereof, respectively, are completed in
accordance with this Agreement.
2. CONTRIBUTION -IN -AID -OF -CONSTRUCTION. The Developer
hereby agrees to contribute to Utilities for aid in construction
of plant facilities the sum of EIGHT HUNDRED SIXTY-FOUR AND
N0/100 DOLLARS ($864.00) for each single-family or multi -family
dwelling unit hereafter constructed on the Property, or the
amount approved by the Florida Public Service Commission at the
time of the payment thereof. Said contribution shall hereinafter
be referred to as the "Connection Contribution." The Connection
Contribution is made up of the contributions -in -aid -of -
construction ("CIAC") approved by the Florida Public Service
Commission in the amount of FIVE HUNDRED FORTY AND N0/100 DOLLARS
($540.00), and the CIAC Tax Impact, in the amount of THREE
HUNDRED TWENTY-FOUR AND NO/100 DOLLARS ($324.00), which also has
been approved by the Florida Public Service Commission. The
amount of the CIAC Tax Impact shall be adjusted when the tax
effect of the Connection Contribution for theyear it is paid is
determined by Utilities and, if the tax impact to Utilities of
the Connection Contribution is more or less than the CIAC Tax
Impact, the difference, if more, shall be paid by Developer and,
if less, shall be refunded to the Developer. The Connection
Contributions shall be paid by Developer to Utilities in lump sum
increments. The first lump sum increment shall be in the amount
of ONE HUNDRED TWENTY-NINE THOUSAND SIX HUNDRED AND N0/100
DOLLARS ($129,600.00), or in the amount of one hundred and fifty
3
(150) times the amount of the Connection Contributions approved
at the time of the payment thereof by the Florida Public Service
Commission, if the amount of the Connection Contributions is
changed from the amount described herein. The first lump sum
increment paid for Connection Contributions shall apply to the
first one hundred fifty (150) dwelling units on the Property.
The first lump sum increment of Connection Contributions shall be
paid by the Developer in cash or cashier's check, or other funds
acceptable to Utilities, at the time the Developer requests
service hereunder in accordance with Paragraph 1 hereof. The
other lump sum increments, in the amounts required for the number
of lots for which service is being requested, shall be paid at
the time the Developer first requests service for additional
lots. Utilities shall have no obligation hereunder to advise any
governmental authority by execution of application, or otherwise,
that it is providing service to lots in the Property unless the
Connection Contribution has been paid for the lots subject to
such advice. Under no circumstances shall the Developer be
entitled to any return of all, or any part of, any lump sum
increment paid for Connection Contribution as described in this
Paragraph 2 (unless Utilities shall be unable to render services
as described in Paragraph 1 hereof) and such lump sum Connection
Contribution may be'used by the Developer only with respect to
units constructed on the Property. The amount of the Connection
Contribution shall be the amount approved by the Florida Public
Service Commission, and if the amount initially approved for
Utilities is lower than the amount provided herein, appropriate
,_.r,efund and _adjustment shall be made,4he Connection Contribution
shall be in lieu of any other tap -in or connection fees charged
by Utilities, but not in lieu of the following: (1) the cost of
constructing off -site improvements in accordance with Paragraph 3
hereof, which shall be charged and paid in accordance with said
Paragraph 3, (2) the CIAO Tax Impact on any contributed property
as described in Paragraph 7 hereof, which shall be charged and
4
paid in accordance with said Paragraph 7 hereof, (3) the rates
and guaranteed revenue charges described in Paragraph 8 hereof,
which shall be charged and paid separately in accordance with
Paragraph 8 hereof, or (4) meter installation fees as described
in Paragraph 9 hereof, which will be charged and paid separately
in accordance with said Paragraph 9 hereof.
3. OFF -SITE IMPROVEMENTS. In order to provide water
service to the Property, certain off -site improvements must be
constructed. These off -site improvements shall be those
improvements which are determined by Utilities, in its sole
discretion, to be necessary to transport water from Utilities'
plant, which will serve the Property, to the Property and shall
include all lines and mains. The off -site improvements which
must be constructed to serve the Property may be partially
constructed by the customers of Utilities prior to the time the
Developer requests service hereunder. At the time the Developer
requests service hereunder, and as a condition precedent to the
Utilities' obligation to provide service to the Property
hereunder, the Developer shall pay to Utilities the followings
(a) a share of the cost of constructing the then existing, or
then under construction, off -site improvements which will serve
the Property; such share being that amount of such cost which was
the portion of such cost related to the over -sizing of such off -
site improvements to provide capacity for the Property, i.e., the
increase in the cost of such off -site improvements occasioned to
provide capacity to the Property, and (b) the cost of
constructing the additional off -site improvements necessary to
serve the Property, less any increase in such costs occasioned to
provide capacity for service to others. The additional off -site
improvements shall be constructed by Utilities at Developer's
cost and expense; provided, however, Utilities, at its option,
may require Developer to construct such additional off -site
improvements, at Developer's cost and expense, in which case
Developer shall not be required to pay Utilities the sum
5
described in (b) in the previous sentence hereof. The off -site
improvements shall be constructed in accordance with plans and
specifications approved by Utilities and in accordance with all
requirements of Utilities and all applicable governmental and
regulatory authorities.
4. ON -SITE IMPROVEMENTS. As the Property is developed, the
Developer shall construct and install therein, at its own cost
and expense, all necessary on -site water facilities, including
generally all the water utility facilities of whatever nature or
kind needed to connect the Development to be constructed on the
Property to the existing lines of Utilities, and including
specifically, all lines, mains, laterals and service connections
to serve the Development to be constructed on the Property. The
Developer agrees that the construction and installation of such
on -site facilities shall be subject to the following:
A. The on -site facilities shall be constructed and
installed by Developer only after the approval of the plans
and specifications therefor by Utilities. The plans and
specifications shall be in accordance with the requirements
of Utilities and all applicable regulatory authorities, and
the Developer shall obtain approval thereof from such
agencies prior to commencement of construction.
B. The Developer, upon approval of the plans and
specifications by Utilities, as provided in subparagraph A
hereof, shall construct such on -site facilities strictly in
accordance with such plans and specifications. It shall keep
Utilities advised as to the progress of such construction and
shall afford Utilities the right to make inspection of said
construction; provided, however, Utilities shall have no duty
to make such inspections, and by making such inspections
shall incur no responsibility for the correct installation or
construction thereof.
S. INSPECTION. In addition to approving the plans and
specifications for on -site work to be accomplished by Developer,
6
Utilities may, at its option and without notification, inspect
such work as it progresses to determine whether it is being
accomplished in accordance with said plans and specifications.
Such inspection shall be at the expense of Utilities; provided,
however, that upon request Developer shall make available for
inspection by Utilities any inspection or progress report
prepared by Developer's engineer or any engineer retained by a
lending institution in connection with a development or
construction mortgage loan on the Property (hereinafter referred
to as the "Engineer"). Such reports shall be made available
without cost to Utilities. Anything contained in this Paragraph
5 or done pursuant hereto notwithstanding, Utilities by
inspection or not inspecting, to any extent whatsoever, shall not
assume responsibility for construction or installation of on -site
improvements and shall in no way be considered to waive any
rights available to it for defaults on the part of Developer, or
to consent to any defects, omissions or failures in the on -site
work to be accomplished by Developer.
6. USE OF ON -SITE FACILITIES. At the time the Developer
desires to connect the on -site water facilities constructed by it
to Utilities' water systems with respect to any lot in the
Development, and as a condition precedent for the right to make
such connection, the' -Developer shall convey to Utilities, at no
cost to Utilities, such of the on -site facilities as Utilities
shall require including specifically, but not as a limitation,
water lines, mains, laterals and connections. Such conveyance
shall be by bill of sale, warranty deed or other appropriate
instrument as determined by Utilities, in its sole discretion,
and shall be free and clear of all liens and encumbrances
whatsoever. In the event that on -site water facilities have been
connected to Utilities' water systems without said conveyance,
the requirement to convey said facilities to Utilities shall not
be waived and Utilities may thereafter, at any time, require the
conveyance of such facilities. In the event that the Developer
7
is unable or unwilling to convey to Utilities such facilities for
any reason whatsoever, Utilities shall have the option to
terminate this Agreement. Notwithstanding the foregoing,
Utilities shall not be required to accept such conveyance, or
undertake the maintenance of any portion of the on -site
facilities which it shall, in its sole discretion, decide to
leave as the property of, and the responsibility of, the
Developer. In addition, Utilities shall not be obligated to make
any connections until Utilities has received the Engineer's
certification that all construction has been performed in
substantial conformance with the engineering plans and that all
tests required by the Engineer and by Utilities have been
satisfactorily performed, and necessary approvals for use have
been received from the Florida Department of Environmental
Regulation or other governmental bodies responsible for the
issuance of such approvals. The cost of all materials,
construction tests and testing and installation for on -site water
facilities and line extensions shall be paid in full by the
Developer prior to the transfer to Utilities. By conveyance of
the on -site facilities, the Developer shall be deemed to have
represented and warranted to Utilities (1) that all costs
therefor have been paid in full and that Developer will furnish
to Utilities such evidence thereof as it may reasonably require,
and (2) that said on -site facilities have been constructed in a
good and workmanlike manner, free from all defects, and that
Developer will correct any defect occurring or discovered in said
facilities within a period of one (1) year from the date of such
conveyance.
7. CIAC Tax Impact of Off -Site and On -Site Improvements.
At the time that the Developer shall pay Utilities for the cost
of off -site improvements as described in Paragraph 3 hereof, and
at the time that the Developer shall convey to Utilities the on -
site improvements described in Paragraph 4 hereof in accordance
with Paragraph 6 hereof, Developer shall pay to Utilities, in
8
cash, the CIAC Tax Impact approved by the Florida Public Service
Commission with respect thereto. The CIAC Tax Impact is intended
to be a sum of money equal to the State and Federal Income Tax
effect on Utilities of such payment or conveyance, and of the
payment of the CIAC Tax Impact itself. The amount currently
approved by the Florida Public Service Commission is sixty
percent (60%) of the cost of the facilities contributed or the
cash paid. Said amount is subject to adjustment and refund to
the extent it is more than the actual tax impact on the Utilities
of such payment or contribution. Utilities shall not be
obligated to construct any off -site facilities or provide any
services hereunder until all CIAC Tax Impact charges due
hereunder have been paid to Utilities. At the time that
Developer shall request service hereunder, pay for off -site
improvements, or convey on -site improvements, Utilities shall
advise Developer of the amount of the CIAC Tax Impact due
Utilities from Developer hereunder.
8. RATES AND GUARANTEED REVENUE CHARGES. The rates to be
charged by Utilities for water service to the Developer for water
service to the Development hereafter built on the Property, and
guaranteed revenue charges, shall be those charges made by
Utilities to its other customers and those charges from time to
time agreed on by- and between the Florida Public Service
Commission, or any other governmental regulatory body from time
to time having jurisdiction over such matters. The rates shall
be the charges for water service provided to the Property. The
guaranteed revenue charges shall be the payment to Utilities by
Developer for capacity reserved but not being used by an active
customer. The Developer shall begin paying guaranteed revenue
charges at the time Developer shall request Utilities to provide
water service to the Property. The Developer shall be obligated
to pay such charges only on those lots for which Developer pays
CIAC and shall continue to pay such charges on each lot from the
time of such payment until an active customer is connected on
9
such lot. The current guaranteed revenue charge of Utilities is
EIGHT AND 64/100 DOLLARS ($8.64) per lot per month. Utilities
reserves the right to withhold or disconnect service, or to
refuse to give or provide new or additional service, at any time
the charges are not paid on a current basis within twenty-five
(25) days after the same are billed; provided that written
notification of such delinquency has been made by Utilities to
the record owner of the lot or living unit being served. The
Developer or record owner of the lot or living unit being served
by Utilities, as the case may be, hereby agrees to save and hold
harmless Utilities for any loss or damages resulting from the
exercise of this right. Moreover, the service to the Development
shall be subject to such other regulations from time to time
imposed on Utilities with respect to the operations of its water
systems, and except as limited by such regulations, the amounts
of utility deposits, billing practices and times, liability for
damage to Utilities' Property and rate changes shall be
exclusively within the discretion and control of Utilities.
9. WATER METERS. It is hereby agreed by the parties hereto
that Utilities shall install a water meter or water meters as
Utilities should deem to be necessary to serve the Development
and the Property. Utilities shall have the right to designate
the number, type, quality and size of said meter or meters. The
cost for said water meter or water meters and the labor charges
associated with its installation shall be paid to Utilities by
Developer prior to installation of each such meter at the rate
from time to time approved by the Florida Public Service
Commission or any other governmental regulatory body from time to
time having jurisdiction over such matters. Said sum shall be
due and payable prior to the time of installation• of said meter
or meters. All water meters so installed shall remain the
property of Utilities.
10. INCLUSION IN-SERVICE AREA. Upon the execution of this
Agreement, Utilities shall petition the Florida Public Service
10
Commission for permission to include the Property in Utilities'
service area as approved by the Florida Public Service
Commission. In the event that the Florida Public Service
Commission shall fail to approve and grant said petition to
include the Property in Utilities' service area within six (6)
months from the date hereof, either party hereto shall have the
right to terminate this Agreement at any time until the Property
is included in the said service area or service is actually
rendered hereunder. Upon such termination, Utilities shall
refund all sums paid to it by Developer hereunder without
interest.
11. PLATS. All plats of the Property, or portions thereof,
filed among the Public Records of Lake County, Florida, or any
other governmental unit, shall provide for such dedicated utility
easements as may be reasonable and necessarily required for the
purpose of serving the Property, or portions thereof, with the
water and sewer service to be provided hereunder.
12. NOTICES. Payments required to be made under the terms
hereof and notices permitted, or required to be made under the
terms hereof, shall be delivered to the parties at the respective
addresses:
Utilities: LAKE HILLS UTILITIES,, INC.
Post Office Box 3873
Longwood, Florida 32750
Developer: DONALD GUBER, AS TRUSTEE
c/o Maguire, Voorhis & Wells
Post Office Box 633
Orlando, Florida 32802
Any notices required or permitted hereunder shall be considered
properly made if in writing and mailed by United States Mail,
postage prepaid, to the addresses set forth herein.
13. TERM. The term of this Agreement shall be for a period
of thirty (30) years from the date hereof, and from year to year
thereafter. After the initial thirty (30) year term, either
party hereto shall have the right to terminate this Agreement
upon one (1) year's prior written notice of such termination.
11
14. MISCELLANEOUS.
A. Time is hereby made of the essence of this
Agreement in all respects.
B. This Agreement constitutes the entire agreement of
the parties and expressly supersedes all negotiations,
previous agreements or representations whether verbal or
written, and may not be amended in any way whatsoever except
by a writing executed by both parties hereto in a manner
equal in dignity to the execution of this Agreement.
C. This Agreement shall inure to the benefit of and be
binding upon the heirs, successors, personal representatives
and assigns of the parties hereto and shall constitute a
covenant running with the Property.
D. This Agreement shall be governed by the laws of the
State of Florida.
E. This Agreement shall be effective upon proper
execution by both parties hereto.
F. This Agreement shall be executed in several
counterparts each of which if properly executed by both
parties shall be considered an original.
IN WITNESS WHEREOF, the parties hereto have caused these
presents to be executed in their names and their seals to be
hereunto affixed, by their proper officers thereunto duly
authorized, on the day and year first above written.
Signed, sealed and delivered
in the presence of: LAKE HILLS UT ITIES, INC.
By:
Lester . M n 1 , Presideftt-
the provisions of that certain
Donald Guber Family Trust
Agreement dated April 18, 1978,
as amended
12
AN UBER, AS TRUSTEE under
the provisions of that certain
Donald Guber Family Trust
Agreement dated April 18, 1978,
as amended
"DEVELOPER"
STATE OF FLORIDA
COUNTY OF ORANGE
The foregoing instrument was acknowledged before me this 3
day of 1990 by Lester N. Mandell, President o
LAKE HILLS OUTILITIES, INC., a Florida corporation, on behalf of
the corporation.
tNotary Public �p1
My CommissionNotary PDbilC.
r%tie & Ftorids
STATE OF FLORIDA My commission expires Oct. 10, 1992
COUNTY OF ORANGE
The forecioing instrument was acknowledged before me thi3
day of 1990, by Donald Guber, as Trustee.,.--.- -
Notary Public /f
M�'OT�4F�Ii�LT�, S�� OF�1�E�I�JI�A�'tARGE
MY COMMISSION EXPIRES MAR. 17, 1992
STATE OF FLORIDA OONDED THROUGH ASHTON AGENCY INC.
COUNTY OF ORANGE
The forggoing instrument was acknowledged before me this
day of _�� _, 1990, by Ann Guber, as Trustee.
Notary Pu lic -
My Commission Expi es:
NOTARY PUBLIC, STATE OF FLORIDA AT LARGE .
MY COMMISSION EXPIRES MAR. 17, 1992
BONDED THROUGH ASHTON AGENCY INC
1-B018-d• 13
(07/19/90)
EXHIBIT "A"
PARCEL A
All of Tracts 46, 50, 51 and 62, the North 1/2 of Tract 63, and those portions
of Tracts 35 and 47 lying South of the Florida Turnpike (Sunshine State
Parkway), all of said Tracts of the Plat of LAKE HIGHLAND COMPANY according to
the plat thereof as recorded in Plat Book 3, Page 52 of the Public Records of
Lake County, Florida.
And
That part of the Northwest 1/4 of. the Northeast 1/4 of Section 22, Township 22
South, Range 26 East, lying North of Old Highway 50.
And
All of Tracts 39, 43, 44 and 53, and those portions of Tracts 42, 54, 55, 59
and 60 lying North of Old Highway 50, all of said Tracts of the Plat of LAKE
HIGHLAND COMPANY according to the plat thereof as recorded in Plat Book 3,
Page 52 of the Public Records of Lake County, Florida.
PARCEL B
Tract 52 of the Plat of LAKE HIGHLAND COMPANY according to the plat thereof as
recorded in Plat Book 3, Page 52 of the Public Records of Lake County,
Florida, And that portion of Tract 61 of the aforesaid Plat of Lake Highland
Company lying North of Old Highway 50.
PARCEL C
Tract 45 of the Plat of LAKE HIGHLAND COMPANY according to the plat thereof as
recorded in Plat Book 3, Page 52 of the Public Records of Lake County, Florida
PARCEL D
That part of Tract 48 of the plat of LAKE HIGHLAND COMPANY according to the
plat thereof as recorded in Plat Book 3, Page 52 of the Public Records of Lake
County, Florida, lying Southwest of the Florida Turnpike (Sunshine State
Parkway).
PARCEL E
All of Tracts 27, 37 and 38, portions of Tracts 11A, 12A, 21, 28, 29, 29A and
36 lying West of Florida State Turnpike and the West one-half of Tract 35
lying West of Florida State Turnpike, all of said Tracts of the Plat of LAKE
HIGHLANDS COMPANY MAP, OF Section L5, Township 22 South, Range 26 Fast, as
recorded in Plat Book 3, Page 52 of the Public Records of Lake County,
Florida.
CLAY PIT DESCRIPTION
All that part of the following described land lying South of the right-of-way
of Florida's Turnpike (Sunshine State Parkway): Beginning at a point on the
midsection line 1105.75 feet South of the North one-half mile corner of
Section 15, Township 22 South, Range 26 East, Lake County, Florida on the
Southerly line of the abandoned right-of-way of the former Tavares and Gulf
Railroad, run Westerly along said Southerly line a distance of 1,375 feet to
the west line of Tract 11-A according to the plat of Lake Highlands a
subdivision in said Section 15 as recorded in Plat Book 3, Page 52, Public
Records of Lake County, Florida, thence South 41.26 feet, thence Easterly
parallel to said Southerly line of abandoned right-of-way 1,342.21 feet to a
point which is 20.00 feet west of the mid -section line, thence South 782.76
feet, thence West 295.15 feet, thence South 295.25 feet, thence East 315.15
feet to the mid -section line, thence North along the mid -section line 1,130.25
feet to the Point of Beginning.
ALL OF THE AFORESAID PARCELS A THROUGH E AND CLAY PIT ALSO BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
(R:052LG\L-495)
-Pace 1 of 3-
A portion of LAKE HIGHLANDS COMPANY MAP OF SECTION 15,
TOWNSHIP 22 SOUTH, RANGE 26 EAST, recorded in Plat Book 3,
Page 52 of the Public Records of Lake County and a portion
of the Northwest 1/4 of the Northeast 1/4 of Section 22,
Township 22 South, Range 26 East, Lake County, Florida,
described as follows:
Commence at the Southeast corner of Section 15, Township
22 South, Range 26 East, Lake County, Florida and run
N 89017'37" W along the South line of the Southeast 1/4 of
said Section 15 for a distance of 1319.39 feet to the
Southwest corner of the Tract 63 of said LAKE HIGHLANDS
COMPANY and the POINT OF BEGINNING; thence run
N 00025'42" E along the West line of said Tract 63 for a
distance of 331.09 feet; thence run S 89021'24" E along
the South line of the North 1/2 of said Tract 63 for a
distance of 659.47 feet; thence run N 00023'26" E along
the East line of said Tract 63 and the east line of Tract
50 said LAKE HIGHLANDS COMPANY for a distance of 995.46
feet to the Northeast corner thereof; thence run
S 89032'46" E along the South line of. Tract 48 of said
LAKE HIGHLANDS COMPANY for a distance of 67.95 feet to the
Westerly Right -of -Way line of the Florida Turnpike; thence
run the following 11 courses along said Westerly Right -
of -Way line: 1) N 46036'32" W, 556.71 feet; 2) S 43023'28"
W, 20.00 feet; 3) N 46036'32' W, 1752.93 feet; 4)
N 43023'28" E, 20.00 feet; 5) N 46036'32" W, 161.91 feet
to a point on a curve concave Northeasterly having a
radius of 5879.58 feet, a central angle of 05015'12" and a
chord bearing of N 44003'06" W; 6) thence run
Northwesterly along the are of said curve for a distance
of 539.09 feet to a point of non -tangency; 7) thence
S 89058'11" W, 13.32 feet to a point on a curve concave
Northeasterly having a radius of 5889.58 feet, a central
angle of 02001'37" and a chord bearing of N 40019'33" W;
8) thence run Northwesterly along the arc of said curve
for a distance of 208.35 feet to a point of non -tangency;
9) thence run N 50041'16" E radial to said curve for a
distance of 10.00 feet to a point on a curve concave
Northeasterly having a radius of 5879.58 feet, a central
angle of 03°36'22" and a chord bearing of N 37030'33" W;
10) thence run Northwesterly along the arc of said curve
for a distance of 370.05 feet to a point of non -tangency;
11) thence run N 35037'32" W for a distance of 208.25 feet
to a point on the Southerly Right -of -Way line of
Biackstill.-Lake Road; thence run S 87052'28" W along said
Right-of-way line for a distance of 40.79 feet to the
point of curvature of a curve concave Northerly having a
radius of 1205.92 feet and a central angle of 14"00'00";
thence run Westerly along the arc of said curve and said
Right -of -Way line for a distance of 294.66 feet; thence
run N 78007'32" W along said Right -of -Way line for a
distance of 98.80 feet to the point of curvature of a
curve concave Southerly having a radius of 1085.92 feet
and a central angle of 13010'49"; thence run Westerly
along the arc of said curve and said Right -of -Way line for
a distance of 249.80 feet to a point of non -tangency;
thence leaving said Right -of -Way line run S 00031'47" W
along the West line of Tract 11A said LAKE HIGHLANDS
COMPANY and its Southerly prolongation thereof for a
distance of 69.96 feet to a reference Point "A", said
point being on the Westerly Right -of -Way line of a platted
un-named road as shown on said Plat of LAKE HIGHLANDS
COMPANY; thence run Southeasterly, Southerly and Westerly
along said Westerly Right -of -Way line for a distance of
2760 feet more or less to a point on the Northerly
prolongation of the West line of Tract 39 of said LAKE
HIGHLANDS COMPANY, said point lying S 25040'00" W a
distance of 1550.43 feet from the aforesaid Reference
Point "A"; thence run S 00052'25" W along the West line of
said Tract 39 and said Northerly prolongation and the West
line of Tract 42 of said LAKE HIGHLANDS COMPANY for a
distance of 1221.48 feet to the Northerly Right -of -Way
line of Old Highway 50; thence run the following 8 courses
-Page 2 of 3-
1
along said Northerly Right -of -Way line: 1) S 61023'27" E,
611.30 feet to the point of curvature of a curve concave
Southwesterly having a radius of 1133.00 feet and a
central angle of 14054'34"; 2) thence run Southeasterly
along the arc of said curve for a distance of 294.83 feet;
3) thence S 46028'53" E, 234.91 feet to the point of
curvature of a curve concave Northeasterly having a radius
of 792.00 feet and a central angle of 18034'42"; 4) thence
run Southeasterly along the arc of said curve for a
distance of 256.81 feet; 5) thence S 65003'35" E, 701.89
feet to the point of a curve concave Southwesterly having
a radius of 1883.00 feet and a central angle of 12°04'39";
6) thence run Southeasterly along the arc of said curve
for a distance of 396.92 feet; 7) thence S 52058'56" E,
752.07 feet to the point of curvature of a curve concave
Northeasterly having a radius of 1167.00 feet and a
central angle of 29°15'34"; 8) thence Southeasterly along
the arc of said curve for a distance of 595.95 feet to the
East line of the Northwest 1/4 of the Northeast 1/4 of
Section 22, Township 22 South, Range 26 East; thence run
N O1020'57" E along said East line for a distance of
538.98 feet to the POINT OF BEGINNING.
(R:052LG/D-495)
UTILITY AGREEMENT
THIS UTILITY AGREEMENT dated this day of August, 1993, by
and between LAKE HILLS UTILITIES, INC., a Florida corporation
(hereinafter referred to as "Utilities"), and THE GREATER
CONSTRUCTION CORPORATION, a Florida corporation (hereinafter
referred to as the "Developer").
PREMISES
WHEREAS, Developer is the owner or contract purchaser of
certain tracts of real property situate in Lake County, Florida,
described with particularity in Exhibit "A" attached hereto and
made a part hereof, which property is hereinafter referred to as
the "Property"; and
WHEREAS, Developer intends to develop and improve the Property
into a residential area containing approximately five hundred (500)
single-family residential lots (hereinafter referred to as the
"Development"); and
WHEREAS, in connection with the Development it is necessary
for the Developer to obtain adequate water service; and
WHEREAS, Utilities intends to be the owner and operator of
water production and distribution facilities which are to serve
real property in close proximity to the Property; and
WHEREAS, the Developer has agreed to pay Utilities a
Contribution -in -Aid -of -Construction as hereinafter defined and
other charges set forth herein to induce Utilities to provide water
service to the Property; and
WHEREAS, as a condition precedent to providing such service
the Developer has agreed to construct at its own cost and expense
certain facilities as more particularly described hereinafter; and
WHEREAS, Utilities has agreed to make its water facilities
available to the Property on the terms and conditions hereinafter
set forth.
NOW THEREFORE, in consideration of the premises hereof and the
work to be done by Utilities and the sums to be paid to Utilities
by Developer as described hereafter, Developer and Utilities agree
as follows:
EXHIBIT "D-4"
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J949m ,s9T4TTT4n Aq ATaATsnToxa paA.xas eq TTegs A4,x9doJd aqZ
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Agaaaq aadoTanaa 'AIHHdOHd SHI OI SOIAHSS SAIsmoxH 'T
service to the Property six (6) months after the Developer shall
make a written request for such service to Utilities, but not
before the on -site improvements on the Property described in
Paragraph 3 are completed in accordance with this Agreement.
2. CONTRIBUTION -IN -AID -OF -CONSTRUCTION. The Developer
hereby agrees to contribute to Utilities for aid in construction of
plant facilities the sum of EIGHT HUNDRED SIXTY-FOUR AND N0/100
DOLLARS ($864.00) for each single-family or multi -family dwelling
unit hereafter constructed on the Property, or the amount approved
by the Florida Public Service Commission at the time of the payment
thereof. Said contribution shall hereinafter be referred to as the
"Connection Contribution." The Connection Contribution is made up
of the contributions -in -aid -of -construction ("CIAC") approved by
the Florida Public Service Commission in the amount of FIVE HUNDRED
FORTY AND N0/100 DOLLARS ($540.00), and the CIAC Tax Impact, in the
amount of THREE HUNDRED TWENTY-FOUR AND N0/100 DOLLARS ($324.00),
which also has been approved by the Florida Public Service
Commission. The amount of the CIAC Tax Impact shall be adjusted
when the tax effect of the Connection Contribution for the year it
is paid is determined by Utilities and, if the tax impact of the
Connection Contribution is less than the CIAC Tax Impact, a refund
of such difference shall be made to Developer. The Connection
Contributions shall be paid by Developer to Utilities in lump sum
increments. The first lump sum increment shall be in the of
EIGHTY-SIX THOUSAND FOUR HUNDRED AND N0/100 DOLLARS ($86,400.00).
The first lump sum increment paid for Connection Contributions
shall apply to the first one hundred (100) dwelling units on the
Property. The first lump sum increment of Connection
Contributions, in the amount of EIGHTY-SIX THOUSAND FOUR HUNDRED
AND N0/100 DOLLARS ($86,400.00), shall be paid by the Developer in
cash or cashier's check, or other funds acceptable to Utilities, at
the time of the execution of this Agreement. The other lump sum
increments, in the amounts required for the number of lots for
which service is being requested, shall be paid at the time the
Developer first requests service for additional lots. Utilities
48596\BATTONDK 3
shall have no obligation hereunder to advise any governmental
authority by execution of application, or otherwise, that it is
providing service to lots in the Property unless the Connection
Contribution has been paid for the lots subject to such advice.
Under no circumstances shall the Developer be entitled to any
return of all, or any part of, any lump sum increment paid for
Connection Contribution as described in this Paragraph 2 (unless
Utilities shall be unable to render services as described in
Paragraph 1 hereof) and such lump sum Connection Contribution may
be used by the Developer only with respect to units constructed on
the Property. The amount of the Connection Contribution shall be
the amount approved by the Florida Public Service Commission, and
if the amount initially approved for Utilities is lower than the
amount provided herein, appropriate refund and adjustment shall be
made. The Connection Contribution shall be in lieu of any other
tap -in or connection fees charged by Utilities, but not in lieu of
the following: (1) the CIAC Tax Impact on any contributed property
as described in Paragraph 6 hereof, which shall be charged and paid
in accordance with said Paragraph 6 hereof, (2) the rates and
guaranteed revenue charges described in Paragraph 7 hereof, which
shall be charged and paid separately in accordance with Paragraph 7
hereof, or (3) meter installation fees as described in Paragraph 8
hereof, which will be charged and paid separately in accordance
with said Paragraph 8 hereof.
3. ON -SITE IMPROVEMENTS. As the Property is developed, the
Developer shall construct and install therein, at its own cost and
expense, all necessary on -site water facilities, including
generally all the water utility facilities of whatever nature or
kind needed to connect the Development to be constructed on the
Property to the existing lines of Utilities, and including
specifically, all lines, mains, laterals and service connections to
serve the Development to be constructed on the Property. The
Developer agrees that the construction and installation of such on -
site facilities shall be subject to the following:
48596\BATTONDK 4
A. The on -site facilities shall be constructed and
installed by Developer only after the approval of the plans
and specifications therefor by Utilities. The plans and
specifications shall be in accordance with the requirements of
Utilities and all applicable regulatory authorities, and the
Developer shall obtain approval thereof from such agencies
prior to commencement of construction.
B. The Developer, upon approval of the plans and
specifications by Utilities, as provided in subparagraph A
hereof, shall construct such on -site facilities strictly in
accordance with such plans and specifications. It shall keep
Utilities advised as to the progress of such construction and
shall afford Utilities the right to make inspection of said
construction; provided, however, Utilities shall have no duty
to make such inspections, and by making such inspections shall
incur no responsibility for the correct installation or
construction thereof.
4. INSPECTION. In addition to approving the plans and
specifications for on -site work to be accomplished by Developer,
Utilities may, at its option and without notification, inspect such
work as it progresses to determine whether it is being accomplished
in accordance with said plans and specifications. Such inspection
shall be at the expense of Utilities; provided, however, that upon
request Developer shall make available for inspection by Utilities
any inspection or progress report prepared by Developer's engineer
or any engineer retained by a lending institution in connection
with a development or construction mortgage loan on the Property
(hereinafter referred to as the "Engineer"). Such reports shall be
made available without cost to Utilities. Anything contained in
this Paragraph 4 or done pursuant hereto notwithstanding, Utilities
by inspection or not inspecting, to any extent whatsoever, shall
not assume responsibility for construction or installation of on -
site improvements and shall in no way be considered to waive any
rights available to it for defaults on the part of Developer, or to
48596\BATTONDK 5
consent to any defects, omissions or failures in the on -site work
to be accomplished by Developer.
5. USE OF ON -SITE FACILITIES. At the time the Developer
desires to connect the on -site water facilities constructed by it
to Utilities' water systems with respect to any lot in the
Development, and as a condition precedent for the right to make
such connection, the Developer shall convey to Utilities, at no
cost to Utilities, such of the on -site facilities as Utilities
shall require including specifically, but not as a limitation,
water lines, mains, laterals and connections. Such conveyance
shall be by bill of sale, warranty deed or other appropriate
instrument as determined by Utilities, in its sole discretion, and
shall be free and clear of all liens and encumbrances whatsoever.
In the event that on -site water facilities have been connected to
Utilities' water systems without said conveyance, the requirement
to convey said facilities to Utilities shall not be waived and
Utilities may thereafter, at any time, require the conveyance of
such facilities. In the event that the Developer is unable or
unwilling to convey to Utilities such facilities for any reason
whatsoever, Utilities shall have the option to terminate this
Agreement. Notwithstanding the foregoing, Utilities shall not be
required to accept such conveyance, or undertake the maintenance of
any portion of the on -site facilities which it shall, in its sole
discretion, decide to leave as the property of, and the
responsibility of, the Developer. In addition, Utilities shall not
be obligated to make any connections until Utilities has received
the Engineer's certification that all construction has been
performed in substantial conformance with the engineering plans and
that all tests required by the Engineer and by Utilities have been
satisfactorily performed, and necessary approvals for use have been
received from the Florida Department of Environmental Regulation or
other governmental bodies responsible for the issuance of such
approvals. The cost of all materials, construction tests and
testing and installation for on -site water facilities and line
extensions shall be paid in full by the Developer prior to the
48596\BATTONDK 6
transfer to Utilities. By conveyance of the on -site facilities,
the Developer shall be deemed to have represented and warranted to
Utilities (1) that all costs therefor have been paid in full and
that Developer will furnish to Utilities such evidence thereof as
it may reasonably require, and (2) that said on -site facilities
have been constructed in a good and workmanlike manner, free from
all defects, and that Developer will correct any defect occurring
or discovered in said facilities within a period of one (1) year
from the date of such conveyance.
6. CIAC Tax Impact of On -Site Improvements. At the time
that the Developer shall convey to Utilities the on -site
improvements described in Paragraph 3 hereof in accordance with
Paragraph 5 hereof, Developer shall pay to Utilities, in cash, the
CIAC Tax Impact approved by the Florida Public Service Commission
with respect thereto. The CIAC Tax Impact is intended to be a sum
of money equal to the State and Federal Income Tax effect on
Utilities of such payment or conveyance, and of the payment of the
CIAC Tax Impact itself. The amount currently approved by the
Florida Public Service Commission is sixty percent (60%) of the
cost of the facilities contributed or the cash paid. Said amount
is subject to adjustment and refund to the extent it is more than
the actual tax impact on the Utilities of such payment or
contribution. Utilities shall not be obligated to provide any
services hereunder until all CIAC Tax Impact charges due hereunder
have been paid to Utilities. At the time that Developer shall
request service hereunder, or convey on -site improvements,
Utilities shall advise Developer of the amount of the CIAC Tax
Impact due Utilities from Developer hereunder.
7. RATES AND GUARANTEED REVENUE CHARGES. The rates to be
charged by Utilities for water service to the Developer for water
service to the Development hereafter built on the Property, and
guaranteed revenue charges, shall be those charges made by
Utilities to its other customers and those charges from time to
time agreed on by and between the Florida Public Service
Commission, or any other governmental regulatory body from time to
48596\811TTOKDK 7
time having jurisdiction over such matters. The rates shall be the
charges for water service provided to the Property. The guaranteed
revenue charges shall be the payment to Utilities by Developer for
capacity reserved but not being used by an active customer. The
Developer shall begin paying guaranteed revenue charges at the time
Developer shall request Utilities to provide water service to the
Property. The Developer shall be obligated to pay such charges
only on those lots for which Developer pays CIAC and shall continue
to pay such charges on each lot from the time of such payment until
an active customer is connected on such lot. The current
guaranteed revenue charge of Utilities is EIGHT AND 64/100 DOLLARS
($8.64) per lot per month. Utilities reserves the right to
withhold or disconnect service, or to refuse to give or provide new
or additional service, at any time the charges are not paid on a
current basis within twenty-five (25) days after the same are
billed; provided that written notification of such delinquency has
been made by Utilities to the record owner of the lot or living
unit being served. The Developer or record owner of the lot or
living unit being served by Utilities, as the case may be, hereby
agrees to save and hold harmless Utilities for any loss or damages
resulting from the exercise of this right. Moreover, the service
to the Development shall be subject to such other regulations from
time to time imposed on Utilities with respect to the operations of
its water systems, and except as limited by such regulations, the
amounts of utility deposits, billing practices and times, liability
for damage to Utilities' Property and rate changes shall be
exclusively within the discretion and control of Utilities.
8. WATER METERS. It is hereby agreed by the parties hereto
that Utilities shall install a water meter or water meters as
Utilities should deem to be necessary to serve the Development and
the Property. Utilities shall have the right to designate the
number, type, quality and size of said meter or meters. The cost
for said water meter or water meters and the labor charges
associated with its installation shall be paid to Utilities by
Developer prior to installation of each such meter at the rate from
48596\BATTOXDK 8
time to time approved by the Florida Public Service Commission or
any other governmental regulatory body from time to time having
jurisdiction over such matters. Said sum shall be due and payable
prior to the time of installation of said meter or meters. All
water meters so installed shall remain the property of Utilities.
9. PLATS. All plats of the Property, or portions thereof,
filed among the Public Records of Lake County, Florida, or any
other governmental unit, shall provide for such dedicated utility
easements as may be reasonable and necessarily required for the
purpose of serving the Property, or portions thereof, with the
water service to be provided hereunder.
10. NOTICES. Payments required to be made under the terms
hereof and notices permitted, or required to be made under the
terms hereof, shall be delivered to the parties at the respective
addresses:
Utilities: LAKE HILLS UTILITIES, INC.
Post Office Box 3873
Longwood, Florida 32750
Developer: THE GREATER CONSTRUCTION CORPORATION
Post Office Box 3873
Longwood, Florida 32750
Any notices required or permitted hereunder shall be considered
properly made if in writing and mailed by United States Mail,
postage prepaid, to the addresses set forth herein.
11. TERM. The term of this Agreement shall be for a period
of thirty (30) years from the date hereof, and from year to year
thereafter. After the initial thirty (30) year term, either party
hereto shall have the right to terminate this Agreement upon one
(1) year's prior written notice of such termination.
12. MISCELLANEOUS.
A. Time is hereby made of the essence of this Agreement
in all respects.
B. This Agreement constitutes the entire agreement of
the parties and expressly supersedes all negotiations,
previous agreements or representations whether verbal or
written, and may not be amended in any way whatsoever except
48596\BATTONDK 9
by a writing executed by both parties hereto in a manner equal
in dignity to the execution of this Agreement.
C. This Agreement shall inure to the benefit of and be
binding upon the heirs, successors, personal representatives
and assigns of the parties hereto and shall constitute a
covenant running with the Property.
D. This Agreement shall be governed by the laws of the
State of Florida.
E. This Agreement shall be effective upon proper
execution by both parties hereto.
F. This Agreement shall be executed in several
counterparts each of which if properly executed by both
parties shall be considered an original.
IN WITNESS WHEREOF, the parties hereto have caused these
presents to be executed in their names and their seals to be
hereunto affixed, by their proper officers thereunto duly
authorized, on the day and year first above written.
Signed, sealed and delivered
in the presence of:
I �Mp
tness
UMEC F. WONTOSH
Printed ame
Witne s
( i� fro A
Printed Name
tness
1EI: F McI lTOSH
Printe Na
�f&,l
Witne -
Printed Name
48596\BATTOKDK 10
LAKE HILLS UTILITIES, INC.
By:
Robert A. Mandell,
Vice President
(CORPORATE SEAL)
"UTILITIES"
THE GREATER CONSTRUCTION
CORPORATION
By:
Robbrt A. Mandell, President
(CORPORATE SEAL)
"DEVELOPER"
STATE OF FLORIDA
COUNTY OF ORANGE
The foregoing instrument was acknowledged before me this �7
day of — ,4;4 , 1993 by Robert A. Mandell, Vice President of LAKE
HILLS UTILYTIES, INC., a Florida corporation, on behalf of the
corporation. He is personally known to me or has produced
as id ne the tificatio
S ture I
UAM, F. McwTO$H
Typed or Printed Name
Commission No.
Commission Expires:
A { DANK F. MC INiM
W COMMON # rx IMIS DWM
STATE OF FLORIDA Kam TM nor FAM10 mum. Bc.
COUNTY OF ORANGE f�
The foregoing instrument was acknowledged before me this S'
day of1993 by Robert A. Mandell, President of THE
GREATER COAZTRUCTION CORPORATION, a Florida corporation, on behalf
of the corporation. He is personally known to me or has produced
as identification.
ature
DA1RE: F. WINTOSH
Typed or Printed Name
Commission No.
Commission Expires:
...........
:DANIEL F. MC INTM
j. My COMMWON / CC 17931E EOM
imovy�''q%,y��� eawm nw rror is,
1996 Bc.
48596\BATTONDR 11
F.XHTRTT "A"
to Utility Agreement by and between
Lake Hills Utilities, Inc. and
The Greater Construction Corporation
Begin at the Northeast corner of Section 33, Township 22 South,
Range 26 East, Lake County, Florida: Thence S.00°30114"E. along the
Easterly boundary of said Section 33, and the centerline of Hancock
Road (3-1254), a distance of 2537.34 feet to the Southeast corner of
the Northeast 1/4 of said Section 33, thence S.89°38132"W. along the
South boundary of the said Northeast 1/4, a distance of 2631.87 feet
to the Southeast corner of Tract 28, POSTAL COLONY COMPANY plat of
Section 33, Township 22 South, Range 26 East, as recorded in Plat
Book 9, Page 65, Public Records of Lake County, Florida; thence
N00°10'04"W. along the Easterly boundary of said Tract 28, a
distance of 621.58 feet to the Northeast corner of said Tract 28;
thence N.89°45'31"W. along the North boundary of said Tract 28, a
distance of 14.58 feet to a point on the Westerly boundary of the
Northeast 1/4 of said Section 33; thence NOW 34'43"W. along said
Westerly boundary, a distance of 7.37 feet to the Southeast corner
of the Northeast 1/4 of the Southeast 1/4 of the Northwest 1/4 of
said Section 33; thence S.89°35'58"W. along the Southerly boundary
of said Northeast 1/4 of the Southeast 1/4 of the Northwest 1/4, a
distance of 657.69 feet to the Southwest corner of said Northeast
1/4 of the Southeast 1/4 of the Northwest 1/4; thence N00°29'46"W.
along the Westerly boundary of said Northeast 1/4 of the Southeast
1/4 of the Northwest 1/4, a distance of 628.61 feet to the South
boundary of Tract 11, said POSTAL COLONY Subdivision; thence
N89°33'22"E. along the said South boundary, a distance of 13.82 feet
to the Southeast corner of said Tract 11; thence N00°09'47"W. along
the East boundary of said Tract 11, a distance of 622.37 feet to the
Northeast corner of said Tract 11; thence S.89°38133"W. along the
North boundary of said Tract 11, a distance of 662.06 feet to the
Northwest corner of said Tract 11; thence N.00°09'31"W. 114.45 feet;
thence S89°52'13"W. 667.54 feet to a point on the Westerly boundary
of the Northeast 1/4 of the Northwest 1/4 of the Northwest 1/4 of
Section 33; thence N.00°19'37"W. along said Westerly boundary, a
distance of 513.76 feet to the Southwest corner of Tract 58, LAKE
HIGHLAND'S COMPANY plat of Section 28, Township 22 South, Range 26
East, recorded in Plat Book 2, Page 28, Public Records of Lake
County, Florida; thence N.89°28'09"E. along the Southerly boundary
of said Tract 58, a distance of 50.38 feet; thence departing said
Southerly boundary, run N.32°54134"E. 42.44 feet; thence
N.83°01103"E. 269.90 feet; thence N.57°04'33"E. 165.20 feet; thence
N.13'02'57"W. 114.60 feet thence N.02°37157"W. 93.00 feet; thence N.
00°27'33"E. 304.26 feet to the Southerly boundary of Tract 55, said
LAKE HIGHLAND'S COMPANY Plat; thence N.89°27'04"E. along the
Southerly boundary of Tracts 55, 54 and 53, said LAKE HIGHLAND'S
COMPANY Plat, a distance of 1514.72 feet to the Southwest corner of
Tract 52, said LAKE HIGHLAND'S COMPANY Plat; thence N.89°14'42"E.
along the Southerly boundary of Tracts 52 and 51, said LAKE
HIGHLAND'S COMPANY Plat, a distance of 1321.16 feet to the Southeast
corner of Tract 51; thence N.00°03114"E. along the East boundary of
Tracts 51 and 46, said LAKE HIGHLAND'S COMPANY Plat, a distance of
1324.99 feet to the Southwest corner of Tract 34, said LAKE
HIGHLAND'S COMPANY Plat; thence N.89°21'27"E. along the Southerly
boundary of Tracts 34 and 33, said LAKE HIGHLAND'S COMPANY Plat, a
distance of 1318.20 feet to the Southeast corner of said Tract 33,
and a point on the Easterly boundary of the aforesaid Section 28 and
the centerline of Hancock Road (3-1254); thence S.00°04'23"E. along
said Easterly boundary of Section 28 and the centerline of said
Hancock Road, a distance of 1983.54 feet to the Point of Beginning.
Subject to a 25 foot right-of-way along the East boundary for
Hancock Road, recorded in Official Records Book 474, Page 999, Lake
County, Florida.
48596\BATTONDN 12
SCHEDULE "Ell -
to Agreement for Sale and Purchase
of Utility System by and between
Lake Hills Utilities, Inc. and
the City of Clermont, Florida
Lake Hills Utilitv Plant:
Tract "C," Greater Hills, Phase 1, according to the Plat thereof as
recorded in Plat Book 30, Pages 41 through 44, of the Public
Records of Lake County, Florida.
And
Well Site:
That certain tract of land located in Section 22, Township 22
South, Range 26 East, described as follows:
Commence at the Southeast corner of said Section 22; thence North
88048121" West along the South boundary of said Section 22, a
distance of 2,109.36 feet to the Northerly right-of-way line of
abandoned railroad; thence North 43025109" West along said right-
of-way line 719.96 feet to the West boundary of the Southeast 1/4
of said Section 22; thence North 00054146" East along said West
boundary 1,569.47 feet to the Point of Beginning, said Point of
Beginning being the Northwest corner of Lot 322, Greater Hills,
Phase 3, according to the Plat thereof as recorded in Plat Book 32,
Pages 88 through 90; thence continue North 00054146" East along
said West boundary 320.08 feet; thence South 89005114" East 373.16
feet; thence South 52006155" West 274.54 feet along the Northern
boundary lines of a portion of Lot 327 and Lots 326, 325 and 324,
Greater Hills, Phase 3, according to said Plat thereof; thence
South 47059'16" West 217.40 feet along the Northern boundary lines
of Lots 323 and 322 of Greater Hills, Phase 3, according to said
Plat thereof, to the Point of Beginning.
Together with:
That portion of a Non -Exclusive Utilities Easement granted in
official Records Book 1067, Page 892, and re -recorded in Official
Records Book 1196, Page 2144, lying North of Tract "C," Greater
Hills, Phase 1, Plat Book 30, Pages 41 through 44, and South of the
Well Site described above.
UTILITY ACQUISITIONS
PRACTICES, PITFALLS AND MANAGEMENT
G. C. HARTMAN, P.E., D.E.E.
PRESIDENT
HARTMAN & ASSOCIATES, INC.
ORLANDO, FLORIDA
R. C. COPELAND, M.B.A
HARTMAN & ASSOCIATES, INC.
ORLANDO, FLORIDA
Few decisions or investments are as complex, and both potentially advantageous
and burdensome as the acquisition or sale of a central water and/or wastewater
system. The first step is the identification of the market, in other words...
WHO ARE BUYERS AND SELLERS OF UTILITIES?
• Regulated Investor Owned Utilities (IOU)
• Non -Regulated Investors
• Developers
• Homeowners Associations, Taxing Districts, Improvement Districts,
Community Development Districts (CDD), Municipal Services Taxing
Units Or Special Benefit Taxing Units (MSTU's, SBTU's)
• IRS 63-20 Corporations
• Cities, Towns, Etc.
• Counties
• Authorities, Districts
• Others
After identifying the market, there must be a motive to sell or a desire to buy a
central water and/or wastewater system. Typical reasons are shown below:
DO YOU WANT TO ACQUIRE?
IS THERE A REASON?
• Plotage
• Special Benefit (Operations, Water Rights, Service Area, Etc.)
• Regulatory Or Environmental Compliance
• Need For Utility Services
• Economic Or Other Financial Benefit - Customer Growth
• Control (Land Use, Zoning, Service, Political, Planning, Etc.)
• Facilities Utilization (Under, Over, Replacement, Etc.)
GGVch/Misc.11 Xtility.gch -1-
Other reasons for selling a system may be the age of the owner, regulatory
requirements, under -capitalization and the need for capital improvements, area
relationships, or any event which changes the owner's desires.
For whatever reason, once the decision to sell or acquire has been made, there are
many tasks for the seller and buyer. Mutual discussions and assistance with
respect to these tasks may be possible and facilitate the process. In many cases,
much independent preparation is necessary prior to meaningful discussions with a
potential buyer or seller. The following is a checklist of tasks involved in a
typical transaction:
UTILITY ACQUISITION TASKS
Appraisal
Policies/Procedures Manual
Strategy
Developer Agreement
Negotiations
Customer Services
Letter of Intent
Operations and Maintenance
Land Appraisal
Laboratory
Purchase Agreement
Contracts
Phase 1 Improvements
Operation and Maintenance Budget
Exhibits Agreement
Capital Budget
Public Hearings
Auditor
Legal Decisions
Accounts
Resolutions
Investments
Ordinances
Operation Funds
Finance Plan
Inventory
Grants/Other
Utility/City
Revenue Bonds
Land Code
Sewer Ordinance
City Code
User Rates
Permits
User Charges
Vendors
Utility Standards
Insurance
One of the most common pitfalls is a lack of understanding of the context of the
potential transaction. The buyer should conduct investigations relative to the
seller's motives, desires, situation, or position. The buyer may also wish to
disclose what the primary reasons are for the desired transactions. Disclosure of
key points, requirements, desires and other items are important in formulating a
successful transaction. To a great extent, the terms and conditions, transaction
structure and method are just as important as the purchase price.
The various types of transactions are shown below:
CONTEXT OF TRANSACTION
• Abandonment
GCH/ch/Misc. I l /Utility.gch -2-
• Dedication
• Negotiation
• Contract For Purchase
• Option To Purchase
• Arbitration
• Condemnation
An abandonment brings with it a host of issues to the receiver. A facility's
condition and function, customer service, clear title, warrantees and
representations, regulatory compliance, accounts receivable, utility fund balances
and customer deposits, customer agreements, environmental audit and other issues
present a maize to be sorted out. Standards for facilities, described conduct and
performance of specified activities by the receiver can avoid many pitfalls.
A dedication usually occurs in conjunctions with some other offsetting benefit to
the donor. One benefit to the donor may be the transfer of burdensome liabilities
or debt. The practice of a specified dedication agreement with the vital
considerations of the investment requirements and revenue shortfall coverage by
the donor to the receiver can better assure a successful transaction.
Many utility negotiations are stylized and conform to the specific issues of each
situation. Standard agreements or "deals" are only a point of departure or
discussion. Buyers and sellers are well served in having a professional team who
know the circumstances and can assist in the various steps of the transaction.
Knowledgeable technical assistance, utility management assistance, legal
assistance and financial assistance are most important. On smaller transactions
the above four functions may be consolidated into the legal service and the other
three in one capability. The larger the transaction, the greater the possibility that
refinement will result in benefit. In such cases, more support is advisable. The
typical transaction is concluded in some sort of negotiation. The terms and
conditions involve who pays for or provides the following:
• Purchase Price, Stock or Warrants
• Bill of Sale
• Satisfaction of Liens, Encumbrances or Title Problems to Obtain Free and
Clear Title
• Easement, Land Rights, or Other Utility Rights Transferred
• Escrow as Appropriate to the Transaction
• Disclosure and Adjustments for Prepaid or Discounted Unconnected
• Disclosure and Representations of Regulatory Conduct and Compliance
• Transfer of Necessary Agreements
• Transfer of Customer Deposits
• Latent Defect Escrow Consideration
• Transfers of all Records, Drawings, Report, Permits and Like Documents
• Disposition of Accounts Receivable
• Disposition of Vendor Invoices, Materials, Supplies
GCWch/Misc. 11/Utility.gch -3-
• Required Inventory of Consumables at Closing
• Prorated Taxes and/or Franchise Fees
• Prior Inspection of all Closing Documents and Scheduling of Pre -closing
• Consideration for Performance and Penalty or Resolution of Non-
performance
• Verification of Proper Authorization to Bind a Party
• Insurance and Indemnification Issues
• Conduct After Agreement and Before Closing
• Consideration and Adjustments for the Transfer of Accounts, Capital
Funds, Restricted Funds, Debt Instruments, Etc.
• Audit Procedures and True-up/Retainage Releases
• Warrantees or "As -is" Type of Transaction
• Operational Staff and Other Employee Consideration
• Rolling Stock, Movable Equipment, Laboratory Equipment, Tools and
Accessories or Appurtenances
• Closing Date, Time, Place and Procedures
• Disclosure and/or Dispensation of Litigation
• Assistance in Petitions of Transfer, No Objections, Contractual Extent and
Type of Cooperation
• Payments of Representative Fees and Costs
• Payment of Documentary Stamps, Recording Costs, Taxes and
Commissions
• Payment of Title Search and Policy
• Procedure for Construction Work in Process
• Other Cash Asset or Value Considerations
• Transitional Billing, Management and Technical Services for Work in
Progress
• Other Issues Specific to the Transaction
Negotiations provide for the setting out of issues, clarifications and other facets
important to the parties.
Contracts for purchase may be the result of prior negotiations, and a defined set of
procedures and activities are contemplated for the transaction.
Options to purchase can be as varied as contracts for purchase. Options to
purchase have provisions to not conclude the transaction --a way to get to say "no"
on the final terms and conditions. Care must be taken in developing the option to
purchase. Scenario planning of the possibilities of future positions is very
important. Protection of the goals and risks of the parties will ultimately push the
terms and conditions.
Arbitration is of two varieties --binding and non -binding. Non -binding arbitration
has one significant advantage over mediation. This advantage is an independent
third party (judges, lawyers, appraisers or engineers) determining or at least
expressing individual opinions as to the value, terms and conditions for the
GCH/ch/Misc.11/Utility.gch -4-
transaction. Binding arbitration is a concluding determinant of value, terms and
conditions. Either process involves significant expense on both sides.
Condemnation or taking utility property is the most expensive and complex
method of acquisition. The author recommends that entities considering
condemnation first initiate negotiations, utilize the advantages of a formal and
structured mediation, undergo non -binding arbitration if appropriate, and allow
for a second mediation prior to the court trial on the issues. The more issues
which can be resolved prior to or in lieu of a trial, typically the better the outcome
for both parties.
As a public utility, either publicly or privately owned, some level of disclosure
requirements are usually imposed by the entity having the regulatory jurisdiction
or statutory standards involved in the transaction. The following ten disclosure
standards cover many of the items which should be addressed
DISCLOSURE STANDARDS
• Income and Expenses
• CIAC
• Rate Base
• Condition of Facilities
• Reasonableness of Price and Terms
• Impact on Customers
• Required Additional Investments
• Alternatives to Sale and Impacts of No Sale
• Ability to Operate Facilities
• Public Interest Assessment
The first item is the historical and projected income and expenses of the utility
system being acquired. An investigation should be made to ascertain any
abnormalities in the revenue stream, revenues which may not be collected after
acquisition, and projected revenues which are expected to be collected. Similarly,
the utility expenses should be investigated to determine those expenses which had
an unusual level, those expenses which may not be recurring, those expenses
which may change with the ownership transition, and those expenses which are
either added or deleted due to the change in ownership. Proper disclosure of this
analysis is important to the ability of the purchaser to pay and the reasonableness
of the activity. CIAC is an abbreviation for contributions in aid of construction
which includes those services, cash and property which are donated or extracted
for the inducement and reservation of service and capacity for a customer. This
amount can be deducted from the total original cost of the system to determine the
base investment in the system by the owner. Other considerations regarding
investment could include losses, deferred taxes, disallowed costs, discounted land
or property, and certain intangibles. Regulatory earnings capacity, which in
Florida is rate base, is an item to be known. In certain states the earnings are
GCH/ch/Misc.11/Utility.gch -5-
based upon the approved expenses. In other states the earnings are based upon
total invested assets. Still in other states, earnings are requested by the utility and
are quasi -adjudicated by the governing regulatory entity.
The condition and extent of the facilities purchased or sold is a basic disclosure,
yet one which, in many transactions, receives insufficient effort. The due
diligence effort as to the condition and extent of the utility being purchased or
sold should involve physical inspection, testing, operations, review of records and
interviews with staff, regulatory entities, consultants, legal counsel and selected
customers with and without satisfied agreements. If a thorough evaluation of the
condition and extent of the system is not possible, then appropriate warrantees,
escrows, and other compensating actions should be used. All transactions usually
are justified to someone at some time. The comparative reasonableness of the
purchase price and terms is a disclosure for that purpose and to provide a fiduciary
function for the customer of the monopoly. Since (1) the customer ultimately
pays the costs, (2) the service is essential to the public health, welfare, and safety,
and (3) the service can be mandatory to the utility which has the sole right to
provide service; a party to the transaction should inform the appropriate entity as
to the reasonableness of the purchase price and terms. A comparative testing is
helpful. An explanatory presentation of the factors as they relate to the
transaction help decision -makers and customers alike understand the key issues
involved and the reason for the purchase or sale.
The regulators, the parties and customers all want to know the impacts of the
transaction on the customers, both positive and negative. How will service
change, costs change, procedures change and facilities change with the change in
ownership?
The utility system may have near -term and five-year capital improvement
requirements. A prioritized five-year capital plan should be developed on a
preliminary basis. The sources and uses for the capital plan should be identified
and the net required investment determined. Then a disclosure of how the
purchaser, seller, customers or others are funding the net required investment
should be made. Affirmation and other representation of the party responsible for
funding the net required investment is appropriate.
There may be alternatives to the transaction which could occur. Such feasible
alternatives should be described. Of course a comparison of no transaction versus
the proposed transaction should be presented.
Public entities with little utility experience, no utility staff, or a utility staff
unfamiliar with the system being acquired are cautioned not to condemn or utilize
a method of acquisition which does not provide for a proper transition of
operations and management. In many cases much of the existing staff are
essential to the effective, efficient and safe operation of the system. Operational
and utility management issues must be addressed. Many professional investor-
GCH/ch/Misc. 11/Utility.gch -6-
owned or operation and maintenance contractors may provide transitional help or
long-term services in this area.
The result of the above series of disclosures, the due diligence investigations and
all other related activities is an informed opinion as to the public interest of the
purchase or sale.
To assist in conducting both the technical and the legal/management consulting
evaluation of the utility, the author recommends that knowledgeable professionals
assist. The partial listings of these evaluations are shown below:
TECHNICAL EVALUATION
• Extent of Facilities
• Condition of Facilities
• System Deficiencies
• Service Area, Comprehensive Plans
• Resources, Natural Setting
• Competition
• Risk Assessment
• Regulatory Compliance
• Operational Adequacy
• Maintenance Adequacy
LEGAL/MANAGEMENT CONSULTING EVALUATION
• Customer Agreements
• Utility Agreements
• System Planning
• Available Capacity Assessment
• Fiscal Plan
• Transition Plan
• Typical Terms and Conditions
Of course the purchase price can be based upon an opinion of value when the
price is not previously determined or specified in approach and/or calculation.
The available and tested valuation techniques include:
VALUATION TECHNIQUES
• Asset Cost Technique
• Income Or "Going Concern" Technique
• Comparable Sales Technique
The author has listed each technique and has presented a few general comments
regarding them below:
GCH/ch/Misc.11/Utility.gch -7-
COST TECHNIQUE
• Three Different Cost Methodologies
- Original Cost Method
- Reproduction Cost Method
- Replacement Cost Method
• Original Cost Method (Rate Making)
- Represent Actual Investment in Utility
- Rate Base Carry Forward Rule
- Carry Purchased Assets at Original Cost
• Reproduction Cost Method (Unique Facility)
- Represents Present Cost to Reproduce Utility with "Like Kind"
Facility
- Does not reflect changes in technology, improvements to Facility
- Requires complete and comprehensive list of Fixed Asset Records
• Replacement Cost Method
- Represents Present Cost to Replace Utility with New Facility
- Recognizes changes in technology and improvements.
- Performed on a Functional Basis
COST TECHNIQUE ATTRIBUTES
• Method Accepted by the Courts
• Must Recognize Physical Characteristics System
• Recognize Changes In Remaining Average Service Life
• Recognize System Capital Deficiencies
• Land Value
• Recognizes Liabilities of Utility
INCOME TECHNIQUE
• Financial Evaluation
- Financial Position
- Revenues and Expenses
- Debt Capacity Analysis
- Present Value of Cash Flow
• Financial Position
- Fixed Assets
- Funding of Assets
- Other Outstanding Obligations/Concerns
- Cash Balances
- Accounts Receivable
- Capitalized Leases/Prepaid Service Obligations
- Contingent Liabilities
• Income From Operations
GCIVch/Misc. l l /Utility.gch -8-
- Essential in Financial Analysis
Assistance in Structure of the Offer to Utility
Financing Strategy
• Review Source of Income
- Monthly User Fees
- CIAC Charges
- Guaranteed Revenues
- Other Revenues
- Continuity of Revenues
• Operating Expenses
- Properly Match Expenses to Income
- Adjust Expenses for Buyer Operations
- Salaries and Wages
- Taxes
- Non -Recurring Expenditures
- Administrative/Management Allocations
• Going Concern Analysis
- Pro Forma Financial Analysis
- Recognize Net Available Income from Operation
- Adjustments for Capital Contributions
- Adjustments for Capital Outlay
- Present Value of Income Stream
• Assist In Debt Capacity Analysis
- Structure issue on Revenue Stream
- Recognize issuance costs
- Recognize Rate Covenant Requirements
- Recognize Deficiency Spending
COMPARABLE SALES
• Provides A "Reasonableness" Test
• Not to be the Only Method of Valuation
• Must Compare Transactions Which Are "Like Kind"
- Revenues
- Customers
- Type of Plant Facilities
- Age of Facilities
- Size of Utility
- Nature of Transaction
- Hidden Costs in the Agreement for Sale
- Other Factors
• Compared to Range or 'Band" of Values
Finally, a few other evaluation considerations are listed for the reader:
GCH/ch/Misc.11 /Utility.gch -9-
OTHER EVALUATION CONSIDERATIONS
• Real Estate
- No liens, encumbrances, or Title problems
- Assignment of Leased Property
- Transfer of Property
• Transition of Assets
- Clear definition of assets
- Conduct inventory of assets
- Escrow of monies by seller for latent defects
- All records, drawings, permits
Developer Commitments
• Accounts Receivable and Unbilled Revenues
• Transfer of Customer Deposits
• Start -Up of Utility
- Employees
- Customer Billing/Accounting
- Working Capital
Utility acquisition pitfalls can be avoided by employing the best available
practices and managing the transaction in an appropriate fashion. Several lists are
included herein which serve as an indicator of the multiple activities required in
the internally or externally regulated world of water and/or wastewater utility
monopoly purchases or sales.
GCWch/Misc.11/Utility.ph -10-
ENGINEERING APPRAISAL
ENTER
NO
NEGOTIATIONS
STOP
YES
ENGINEER
HIRE NEGOTIATIONS TEAM
CONTINGENT UNDERWRITER
FEES 2ND OPINION
NEGOTIATIONS
FINANCIAL ADVISOR
SPECIAL COUNCIL
STAFF
YES
NO LETTER OF
LITIGATION CONDEMNATION
INTENT TO PURCHASE
STOP
OR SELL
NO
YES
STOP
MAI FINANCIAL ADVISOR
ENGINEER
SPECIAL COUNSEL AUDITOR
• FINANCE PLAN
• AGREEMENT EXHIBITS
• PURCHASE AGREEMENT • FINANCIAL REPORT
• 180.301 MEETING
• 180.301 MEETING
DOCUMENTATION
• GRANTS REQUEST
• RESOLUTIONS
FOR PURCHASE
• USER RATES
• ORDINANCES
• CAPITAL CHARGES
• SEWER ORDINANCES
• UTILITY STANDARDS
• STD. DEVELOPERS AGREEMENT
• POLICIES PROCEDURE
MANUAL
OPERATIONS ITEMS 22-38 - PRIVITIZATION FINANCE PLAN NO STOP
NON -BOND ISSUE & PURCHASE DOCUMENTS
PROGRAMS
BOND ISSUE/
DEBT PROGRAM
INSURANCE COSTS OFFICIAL STATEMEN PRO FORMA 11 ENGINEER'S RPT. CERTIFICATIONS RESOLUTIONS ORDINANCES RATING/INSURANCE
FINANCED BY BONDS
ITEMS 22-38 1 OPERATIONS
ACQUISITION I
DO YOU WANT
TO INVESTIGATE
ACQUISITION ?
YES
DO YOU WANT
TO INVESTIGATE
ACQUISITION ?
APPROACH
NO I YES
ACQUISITION
OR
REGULATION
I BOTH I
NO
• FRANCHISE FEE
• UTILITY TAX
• RIGHT OF WAY
UTILIZATION FEE
REGULATE
• ABANDONMENTS
• DEDICATIONS
• TERM -FRANCHISES
• NEGOTIATED
• CONDEMNATION
I REGULATION I
REGULATORY
+ PLANNING
FUNCTIONS
SYSTEM
RELIABILITY
MINIMUM
PERFORMANCE
REQUIREMENTS
• ORDINANCES/STANDARDS
/
• DESIGN SPEC.
• PERFORMANCE
"BALL PARK' INFRASTRUCTURE
SCENARIOS
o LAND USE
ACCESS/INSPECTION
W/APPROACH DEDICATION
• EXTENSION POLICY
• SAMPLING/TESTING
• CONNECTIONS
• REPORTING
• UTILITY PERMITTING
CONDUCT EVALUATION 125.3401 F.S.
SEE ACQUISITION FLOW CHART 180.301 F.S.
I REGULATE I
Public Financial Management, Inc.
THE CITY OF
CLERMONT, FLORIDA
Purchase and Sale Agreement Analysis
February 23, 1995
Public Financial Management, Inc.
5900 Enterprise Parkway
Ft. Myers, FL 33905
(813) 693-7117
1;,7f'4 /' /"� t:-� tam,
- /v, A--�
_ A-A4
CITY OF CLERMONT, FLORIDA
Lake Hills Utilities, Inc.
Proposed Sale and Purchase Agreement Analysis
INTRODUCTION
The City of Clermont, Florida (the "City") is located in Lake County in the heart of central
Florida. The City encompasses a five square mile area approximately thirty miles west of
Orlando and thirty miles southeast of the City of Leesburg. The City currently provides water
and wastewater service to approximately 2,700 customers within the City limits. The City's goal
is to increase their service area to provide utility service to the annexed areas and extended
utility service areas east of the City. The purchase of Lake Hills Utilities, Inc. ("LHU") will
allow the City to meet these objectives without the necessity of constructing additional wells and
the related pumping and distribution system associated with this endeavor. The purchase and
use of LHU to supplement the City's newly constructed well, in addition to the associated
customer base and water rate base, is anticipated to be more economical than the construction of
a second well east of Clermont (while PFM has not received any empirical data to substantiate
this point, we have had conversations to this effect with John Springstead of Springstead
Engineering, Inc.).
The City began negotiations with LHU in 1994, at this time LHU was requesting a purchase
price of $2,500,000. Upon extended negotiations with the City, LHU subsequently proposed a
purchase price (to be paid in cash) of $1,500,000 for the System in the beginning of 1995. The
System includes the water treatment and distribution system which serves the Greater Hills and
Greater Pines Subdivisions. The System currently provides service to approximately 443
residential water customers.
The formulation of a purchase price for the proposed acquisition is structured around the
following principals: (i) the use of the Public Service Commission ("PSC") approved rates which
are currently being utilized by LHU, (ii) establishing level annual debt for 30 years based on the
net revenue currently produced by the customers of the system, and (iii) projecting growth in the
customer base and the associated revenues and expenditures.
-1-
Lake Hills Utilities. Inc.
Springstead Engineering, Inc. ("Springstead") estimates that LHU serves approximately 443
residential customers.
The Water System
Condition: Inspection of the facilities by Springstead indicated that the system is in
overall good condition. The wells and system are in good standing with Florida
Department of Environmental Protection.
Remaining Capacity: In a memorandum dated February 6, 1995, Springstead estimated
that the system can service approximately 818 ERUs with Well Number One. This
assumes that Well Number Two is inoperable and the system maintains 500 GPM for
Fire Flow protection.
Customers: Approximately 443 water customers, build out of existing construction
projects is estimated to be approximately 1,692 residential units (estimated by
Springstead).
-2-
PUBLIC FINANCIAL MANAGEMENT, INC.
THE CITY OF CLERMONT, FLORIDA
Purchase and Sale Agreement Analysis
TABLE OF CONTENTS
Transmittal Letter
Tab
Introduction I
Historical Financial Data II
Rates III
Formulation of a Purchase Price IV
Methods of Financing V
Recommended Revisions to Sale Agreement VI
Conclusions VII
Conversion to Public Ownership Appendix A
Projected Revenue Growth Appendix B
Debt Capacity Valuation Appendix C
Going Concern Valuation Appendix D
Florida Statute 180.301 Appendix E
Application for Sale to Governmental Agency Appendix F
PFM
PUBLIC FINANCIAL MANAGEMENT, INC.
Financial and Investment Advisors
59oo Enterprise Parkway
Fort Myers, FL 33905
813-693-7117 (Fax) 813-693-6384
February 23, 1995
City of Clermont
Mayor and City Commission
P.O. Box 120219
Clermont, Florida 34712-0219
Dear Commissioners:
Public Financial Management, Inc. ("PFM") has been requested by the City of Clermont
("City") to analyze the Proposed Purchase and Sale Agreement of Utility System as it relates to
the City's possible acquisition of the Lake Hills Utilities, Inc. ("LHU"). This analysis has been
performed utilizing available information and financial data and is enclosed herewith.
In order to perform this task, PFM reviewed the Purchase and Sale Agreement of Utility
System ("Agreement") and related attachments, Public Service Commission Annual Reports for
the Years 1992 and 1993, Unaudited statements of revenue and expenditures for the year 1994, as
well as all available and relevant engineering reports. The purpose of this analysis was to identify
points of negotiation between the City and LHU which could be resolved in the City's favor and
terms which might place a financial or operational hardship on the City at some later date.
The scope of this analysis was limited to the financial implications of the proposed
acquisition given the information available. PFM identified several intangible aspects of the
acquisition, but did not attempt to make policy recommendations or conclusions at this time.
PFM's analysis and conclusions are based upon our interpretations of the Agreement and related
documents, any discrepancies between this interpretation and the original intent of the documents
could affect the conclusions reached by this analysis. To the extent that PFM's interpretations and
the original intent of the documents do not coincide, the City should request that additional
clarification of the documents be made.
In summary, PFM's conclusions are as follows: 1) LHU is a growing utility that can not,
with current revenues, support the $1,500,000 purchase price, 2) the anticipated growth in the
LHU service area is projected to provide sufficient revenues to support the $1,500,000 purchase
price, 3) the City should review interim financing strategies to provide a "bridge loan" between
the acquisition date and anticipated Utility System Revenue Bond sale date, 4) the agreement
should be further reviewed and modified in specific areas to better protect the City's interests, 5)
Atlanta Austin Boston Denver Fort Myers Harrisburg Houston Memphis Minneapolis New York Newport Beach Orlando Philadelphia Portland San Francisco
An Affiliate of Marine Midland Bank
City of Clermont, City Commission
February 23, 1995
Page 2
additional policy decisions and other intangible factors should be discussed to further determine
the applicability of the proposed acquisition.
It is PFM's recommendation to the City to proceed with negotiations for the acquisition of
the Lake Hills Utilities, Inc. This recommendation is based on the financial forecast of the System
given the assumptions made for revenue and expenditure growth. In order to distribute the risk
associated with the potential growth in the LHU service area, it is our further recommendation to
negotiate payment of the System based upon the current Debt Capacity with future payments to
LHU to be based upon customer growth. In order to finance the acquisition, PFM recommends
negotiating interim financing with a Consolidated Utility Revenue Bond issue to be sold as
appropriate. This will allow the City to fund the acquisition without depleting the current fund
balance and maintain a mechanism for long term, permanent financing.
Thank you for your time and your consideration of Public Financial Management's analysis.
Sincerely,
PUBLIC FINANCIAL MANAGEMENT, INC.
iJerr�Wright
Senior Managing Consultant
v
I. HISTORICAL FINANCIAL DATA AND FORMULATION OF A NET REVENUE
BASE
Public Financial Management, Inc. ("PFM") reviewed and assessed the current financial
information provided by LHU. LHU provided the past two years of financial reports, filed with
the Florida Public Service Commission ("PSC") as well as other financial projections based on
the most recent year of operations. PFM analyzed the financial and economic factors and
provided the City with a format for conversion of operations from private to City (or public)
ownership. This Conversion was accomplished by the City with all necessary revisions to
expenditures being made. A copy of that conversion table including two years of historical data,
is provided as Appendix A. The estimated net revenues under City ownership for the year
ending 1994 would have been approximately $88,540.
This analysis assumes the current rate base and structure as approved by the PSC would be
utilized by the City. Any downward revision in these rates would decrease the revenues
available to the City.
-3-
H. RATES
LHU's current residential rates have been approved by the PSC and are based upon (i)
guaranteed revenues of $9.11 per month per customer, and (ii) $1.13 per 1,000 of water used per
customer.
PFM's analysis of LHU was based upon the continuation of the above rates for the System's
existing and projected customers. It is PFM's understanding that Mr. Leonard Baird, City of
Clermont Attorney, is of the opinion that the above rates are legal and appropriate. Any
revisions to the water system rates could negatively impact the results of PFM's analysis.
M
III. FORMULATION OF A PURCHASE PRICE
When determining the value of a utility system several methods are generally utilized. The
five commonly used techniques for determining the value of a utility are (i) book value; (ii)
depreciated replacement valuation; (iii) rate based or debt capacity; (iv) going concern value;
and (v) comparables. Each method must analyze different aspects of the utility, such as: age of
the facility, net revenues of the existing and future users, etc. Historical data also assists in the
perspective of the utility and assists in predicting future trends.
Book Value
The book value of a utility is the original cost of the physical assets less
accumulated depreciation. Contributions -in -Aid -of -Construction ("CIAC") are
subtracted from utility assets, since they are assets (typically pipelines) that are
donated to the utility. Amortization of CIAC is added to the book value and is the
PSC's method of accounting for the depreciation of the CIAC.
Depreciated Replacement Value
There are several different variations of this method; however, each method gives
an approximate current value of the assets while considering the age of the assets.
This method most closely represents the true value of a utility's fixed assets, but it
does not account for a lack of preventative maintenance or value of the franchise
area.
Debt Capacity
The debt capacity of a utility is the amount of debt (bond or loan) that the net
revenue can support for the entire duration of the bond/loan, assuming an interest
rate, amortization schedule and a debt service coverage ratio. This valuation
method closely approximates a utility's existing worth, but not the future worth of
the franchise nor the condition of the facilities.
-5-
t
The value of a utility as a going concern is calculated by determining the present
worth of the future net revenues. This method generally has little meaning to a
public owner because the public entity can not obtain funding based on the present
worth of future net revenues. Funding sources for public entities are usually
limited to available funds on hand or debt financings. As mentioned above, debt
financings are dependent upon historical results, not projections.
This method analyzes the selling price and rate base of other comparable utility
systems. This method is rarely implemented since each utility system and its
circumstances are unique.
'li•
IV. METHODS OF FINANCING
Typical financing methods include, but are not limited to (i) revenue bonds, (ii) owners
bonds, (iii) futures bonds, and (iv) special assessment bonds. In the proposed Sale and Purchase
Agreement, LHU has requested that the City deliver the entire purchase price of LHU in cash
upon closing the acquisition.
Revenue Bonds
Revenue Bonds are bonds payable from a specific source of revenue. These bonds do not
pledge the full faith and credit of the City. Only revenues generated by an enterprise activity or
revenues from other specified non ad valorem tax sources may be pledged as collateral for
revenue bonds. No referendum or voter approval is needed.
The City may wish to explore two different options with respect to revenue bonds. The first
option is the pledge of a Consolidated Utility System. This would combine the revenue pledges
of the existing water and wastewater system to the LHU System. The Consolidated Utility
System pledge would strengthen the credit of the bonds and potentially allow for more flexibility
and lower borrowing costs. However, a consolidated pledge would provide for revenues from
the existing utility systems to subsidize debt payments of the proposed acquisition if the acquired
utility's revenues were not sufficient to repay its portion of the debt service.
The second option for a revenue bond sale would be to pledge the "East" Water Utility as a
separate pledge from the City's existing water and wastewater systems. This structure would
allow the City to segregate the existing facilities from the proposed systems and thus mitigate
any concerns the City's existing utility customers might have with the concept of subsidizing
growth in the "East" utility service area. However, as a stand alone system, LHU does not
currently generate sufficient revenues to pay for itself either through the issuance of revenue
bonds or through cash generated from operations.
Owner's Bonds
Owner's Bonds are bonds issued by the City and delivered to the owners of LHU at closing.
The Bonds can be a substitute for a cash payment or can be in addition to a cash payment for the
System. Owner's Bonds may be structured with certain tax advantages to the Seller which make
them more acceptable than cash payments. In addition, Owner's Bonds may be structured in
-7-
such a way as to allow the City to purchase the System and not realize debt service payments
until an appropriate level of customer and revenue growth have been achieved.
Futures Bonds
Futures Bonds allow for the City and LHU to structure a payment and purchase plan which
compensates LHU for future growth in its service area without placing an excessive burden on
the City to pay for future water connections and revenues which may not materialize. The Sale
and Purchase Agreement may be modified in such a way as to provide for a partial cash payment
of the LHU System on the date of closing, future payments may be made in the form of either
debentures or cash placed with the owners of LHU. This allows both the City and LHU to
participate in the upside and downside of the potential growth in the area.
Special Assessment Bonds
As provided by Florida Statutes, special assessment bonds are bonds underwritten by charges
imposed against property in a particular locale because the property receives special benefit from
some public improvement. Special assessment bonds are paid from assessments levied against
benefited property according to the value of the benefit received. Essentially, each benefited
property pays its pro-rata share of the cost of the facility or service based upon its proportionate
share of the benefits.
Special assessment bonds do not pledge the full faith and credit of the City. Bondholders
may only look to the special assessments levied against lands receiving the benefit for payment
of such bonds. Special assessment bonds do not require referendum or approval by electors with
the area to be assessed prior to sale.
User Charges and Cash
City surplus funds could be used to fund all or a portion of the proposed utility projects or
acquisition.
If excess user charge revenues are available, the funds could be used to fund all or part of
required improvement or expansions. Revenues generated by utility systems can be utilized for
repayment of debt service, fund general operation and maintenance expenses, payment for
renewal and replacement, as well as funding of capital improvements.
M
INTERIM FINANCING
It is PFM's understanding that the City plans to access the municipal bond capital markets
with a Revenue Bond issue in the second half of 1995. This leaves a potential funding gap
between the current acquisition date of LHU and the source of funds to be made available from
the proposed bond issue. In order to mitigate this timing difference, there are several methods of
interim financing which may be utilized by the City.
User _Charges and Cash
The City could use available funds in either the General or Utility Fund to purchase LHU.
This cash purchase should be accomplished in conjunction with a reimbursement resolution
which would allow the City to "re -pay" itself through a debt financing at a later date.
While utilizing the City's cash may be viewed as an inexpensive method of borrowing funds,
it could leave the City in a weak cash position if an unexpected emergency occurred before
repayment could be made. In addition, the City would not be utilizing its "tax exempt" status in
borrowing funds. This could mean that the "opportunity cost" associated with the lost
investment earnings on the expended proceeds could exceed the interest cost associated with a
tax exempt interim financing.
Line of Credit
The City could negotiate a Line of Credit with either its depository bank or another
commercial bank or institutional investor. A Line of Credit may be structured to allow the City
access to moneys on an "as needed" basis up to a pre -determined credit limit. This method of
borrowing circumvents many of the costs associated with public offerings while still providing a
competitive selection of service providers. In addition, a Line of Credit could be utilized by the
City and the Utility System as a source of funds beyond that necessary for the acquisition. One
note of caution is that commercial banks and other investors may demand restrictive covenants
which could be avoided in a public offering.
Bond Anticipation Notes
BANs are notes that are issued in anticipation of a later permanent bond issue, usually
payable from the proceeds of the bonds. One alternative that the City might consider is the
issuance of a series of BANs to finance the acquisition and future project costs, and taking the
BAN issues out with a bond issue at the end of the construction period. The advantage to this
-9-
alternative is that all costs associated with the acquisition and projects would be known at the
time of the permanent financing, so the bond issue would reflect actual costs. The interest rate
risk involved in issuing these short term securities is the unpredictability of the long term interest
rate climate after the construction period. The City would risk the opportunity to lock in the low
interest rates of the current market by delaying the permanent issue until the permanent
financing is completed.
- 10-
V. RECOMMENDED REVISIONS TO SALE AGREEMENT
PFM reviewed the Agreement of Sale and Purchase of Utility System (the "Agreement") and
the associated attachments for the appropriateness of the sale arrangements. Based upon PFM's
interpretation of the documents, it is our recommendation that the following changes be made in
favor of the City:
1. The City should not guarantee capacity to the Developers without receiving payment or
capacity charges.
2. Unbilled water services should be due upon receipt from the customers by the City, not
on the closing day of the acquisition. This total amount should further be reduced to reflect the
City's costs associated with collecting the unbilled amounts.
3. LHU has received CIAC from 58 units in the Arrowhead sub -division. It is PFM's
understanding that no services or work has been performed by LHU for these units, and as such
the amount of CIAC paid should be subtracted from the purchase price or the total amount
should be transferred to the City upon completion of the acquisition.
LHU should retain Connection Charges previously paid if the customers are connected to the
System. For customers who are not connected to the System, but have paid Connection Charges
to LHU, the Seller should retain any water main extension charges (if LHU has previously
extended pipelines to provide service) and pay to the City the plant capacity charges paid by
such customers. All Connection Charges received by LHU prior to closing for customers who
have not connected to the System should be deemed property of the City.
4. Article V of the Proposed Sale and Purchase Agreement should be clarified. One
interpretation of Article V, Paragraph 2 could read that the City would not be allowed to charge
any Connection Charges or other fees to Greater Construction. Paragraph 3 of the same Article
then states that "the City may charge water connection fees in accordance to the City's standard
practice." This statement seems to contradict each of the Utility Agreements which state that
LHU may charge the Developer the agreed upon CIAC amount but may not charge any
additional connection fees.
Since this Article may be read as contradicting itself or as being unclear, the City should
request that it be further clarified.
-11-
5. A statement should be included from LHU that it has no knowledge of any material
defects, patent or latent, in the purchased assets. LHU should further covenant that the assets are
in generally the same condition as when reviewed by the City and the City's Engineer.
6. LHU should provide a schedule and copies of all agreements entered into between the
Seller and other parties in connection with the operation of the System. This should include
such items as leasehold agreements, vendor contracts, construction contracts, and maintenance
contracts.
7. LHU should further represent that all materials, equipment and other personal property
owned by the Seller and being acquired by the City will not be depleted prior to Closing except
to the extent necessary during the normal course of business.
8. Copies of current or active operation permits including all permits with such governing
entities as the Florida Department of Environmental Protection should be made available to the
City.
9. The City and LHU shall cooperate to the extent necessary in applying for and obtaining
transfer of all such permits and licenses as necessary to effect a transfer of ownership.
10. The Agreement should explicitly state any assets that are not to be transferred to the City
upon acquisition of LHU. These assets may include items such as cash and accounts receivable.
- 12-
VI. CONCLUSIONS
The analysis of the LHU System has been performed by examining the accounting and
financial statements of LHU.
Financial Value
LHU's customer base has been steadily increasing over the past three (3) years, with
revenues and expenses increasing commensurate with the customer growth.
Historically, net revenues and operating margins (exclusive of depreciation) have been
positive.
Of the five methods commonly used to determine the "value" of utility systems, PFM
performed the "Debt Capacity" and "Going Concern" analyses.
1. Debt Capacity: Actual debt capacity (based upon existing revenues of LHU, existing
debt covenants of the City's Utility System Revenue Bonds, and providing for allowances for the
conversion to public ownership) for the current year is estimated to be $769,709. As stated
above, this is the net amount of debt which may be supported by the LHU System with the
System's current revenues. This does not allow for growth in LHU's customer base nor does it
allow for intangible concerns such as servicing additional growth and expansion beyond LHU's
current service area.
2. Going Concern: The going concern valuation method considers the present value of a
utility's future net revenues. To accomplish this, PFM forecasted net revenues of LHU based
upon three assumptions: (i) Limited Growth in the customer base, (ii) Moderate Growth in the
customer base, and (iii) Rapid Growth in the customer base.
��,w
The Limited Growth Scenario was chosen in order to provide the City with a conservative,
yet realistic, projection of Revenues and Expenditures. Under this Scenario, the customer base
of the LHU System is anticipated to expand by approximately two (2) customers per month.
The rate base is assumed to remain stable and expenses are projected given the Conversion Chart
as estimated by the City as well as including a Renewal and Replacement Account (5% of the
prior years gross revenues) and a growth factor of 2.5% for each expense category.
-13-
The projected revenues under the Limited Growth Scenario were assumed to be held
constant after the year 2000. The projected net revenues from the System were then discounted
at the rates of 8.00% and 10.00%. The values derived from this valuation method are shown
below:
8.00% Present Value Factor: $1,884,828
10.00% Present Value Factor: $1,544,821
Intangible Value
In addition to considering the tangible value of LHU's assets and projected revenues, a
decision to acquire the System must be partially based on other, intangible benefits. Several of
which are listed below:
- Ability to manage and provide orderly utility service to the City's annexed areas.
- Enhance the ability to manage and/or promote growth in this portion of the City's service
area.
- Ability to enhance City revenues.
- Economies associated with purchasing the LHU System in conjunction with water system
expansions planned for the City's service area in the future.
- Value associated with the purchase of "proven" non -contaminant water wells.
- Provide greater accountability and service to utility consumers.
Utility System Evaluation
Springstead has evaluated LHU and has stated in a memorandum dated February 6, 1995 that
"The wells and systems check out to be in good standing with FDEP with no outstanding issues
or violations."
A further inspection and inventory of LHU's current assets, replacement values, and any
necessary System enhancements or corrections should be accomplished prior to purchasing
LHU.
- 14-
1
Appendix A
1
LAKE HILLS UTILITIES
- HISTORICAL FINANCIAL AND CONVERSION TO CITY OWNERSHIP
Line
1992
1993
1994
City
Total Water Under
No.
Description
Actual
Actual
Preliminary
Adjustments (a)
City Ownership
Operating Revenues
Water
I
Residential
86,955
99,129
120,388
0
120,388
2
Commercial
1,298
1,293
1,651
0
1,651
3
Irrigation
1,810
0
1,810
4
Guaranteed Rev
6,083
7,734
11,360
0
11,360
5
Initial Connection Fees
1,215
0
1,215
6
Reconnection Fees
2,055
0
2,055
7
Other (IRR)
827
913
0
0
8
Misc. Service Charges
2,535
3,226
265
0
265
9
Interest Income
1,564
1,096
0
0
10
Sub -Total Operating Revenues
99,262
113,391
138,744
0
138,744
System Growth
TOTAL Operating Revenue
99,262
113,391
138,744
0
138,744
Operating Expenses
1
Salaries and Wages - Employees
0
0
0
15,600
15,600
2
Salaries and Wages - Officers, Directors
and Majority Stockhold,
0
0
0
0
0
3
Repairs & Maintenance
0
0
0
2,900
2,900
4
Payroll Taxes
0
0
0
0
0
5
Purchased Water
0
0
0
200
200
6
Purchased Power
9,729
8,146
9,301
(1)
9,300
7
Fuel for Power Purchased
287
0
0
0
0
8
Chemicals
568
225
180
(30)
150
9
Materials and Supplies
0
3,119
4,380
(3,830)
550
Contractual Services
10
Administration
8,246
6,953
2,877
(2,877)
0
11
Accounting
3,083
3,875
0
0
0
12
- Legal
8,553
1,722
4,490
(4,490)
0
13
External Contracts
397
2,376
617
(617)
0
14
Laboratory & Engineering
2,640
940
5,538
462
6,000
15
Administration
0
9,915
13,200
(13,200)
0
16
Emergency Telephone Lines
306
318
321
(321)
0
17
Telephone
2,677
2,791
0
100
100
18
Rents
4,024
5,003
3,522
(3,522)
0
19
Transportation Expense
2,203
2,477
3,561
(3,311)
250
Insurance
20
Vehicle
1,314
1,470
0
0
0
21
General Liability
1,378
2,399
0
0
0
22
Workman's Compensation
0
0
0
0
0
23
Other
0
0
0
0
0
24
Customer Billing
0
25
Billing Supplies & Exp.
3,177
1,719
0
0
0
26
Computer Supplies & Exp.
368
123
0
0
0
27
Office Supplies & Stationary
880
1,230
0
0
0
28
Travel& Lodging
352
0
0
350
350
29
Trade & Business Memberships
0
0
0
0
0
30
Regulatory Commission Expenses
953
953
0
0
0
31
Bad Debt Expense
0
0
0
0
0
32
Miscellaneous Expense
136
0
0
1,467
1,467
33
Renewal & Replacement
0
0
0
6,937
6,937
34
Administrative Allocation
0
0
0
6,400
6,400
35
Sub -Total Utility Expense
51,271
55,754
47,987
2,217
50,204
36
Utility Operating Income
47,991
57,637
90,757
(2,217)
88,540
(a) Estimates provided by the City of Clermont.
Appendix B
LAKE HILLS UTILITIES
- Projected Revenues and Expenditures
Rapid Growth Scenario
Line
No. Description
Operating Revenues
Water
1 Residential (a)
2 Commercial
3 Irrigation
4 Guaranteed Rev
5 Initial Connection Fees
6 Reconnection Fees
7 Other (IRR)
8 Misc. Service Charges
9 Interest Income
10 Sub -Total Operating Revenues
System Growth
TOTAL Operating Revenue
Operating Expenses (b)
1 Salaries and Wages - Employees
2 Salaries and Wages - Officers, Director
and Majority Stockholders
3 Repairs & Maintenance
4 Payroll Taxes
5 Purchased Water
6 Purchased Power
7 Fuel for Power Purchased
8 Chemicals
9 Materials and Supplies
Contractual Services
10 Administration
11 - Accounting
12 - Legal
13 - External Contracts
14 - Laboratory & Engineering
15 - Administration
16 Emergency Telephone Lines
17 Telephone
18 Rents
19 Transportation Expense
Insurance
20 Vehicle
21 - General Liability
22 - Workman's Compensation
23 Other
24 Customer Billing
25 - Billing Supplies & Exp.
26 - Computer Supplies & Exp.
27 Office Supplies & Stationary
28 Travel & Lodging
29 Trade & Business Memberships
30 Regulatory Commission Expenses
31 Bad Debt Expense
32 Miscellaneous Expense
33 Renewal & Replacement
34 Administrative Allocation
Total Water Under
City's Ownership FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000
120,388
156,300
199,500
222,900
246,300
269,700
293,100
1,651
1,651
1,651
1,651
1,651
1,651
1,651
1,810
1,810
1,810
1,810
1,810
1,810
1,810
11,360
15,912
15,912
15,912
15,912
15,912
15,912
1,215
2,160
2,160
2,160
2,160
2,160
2,160
2,055
2,055
2,055
2,055
2,055
2,055
2,055
0
0
0
0
0
0
0
265
265
265
265
265
265
265
0
0
0
0
0
0
0
138,744
180,153
223,353
246,753
270,153
293,553
316,953
0
0
0
0
0
0
0
138,744
180,153
223,353
246,753
270,153
293,553
316,953
15,600
15,600
16,770
18,028
19,380
20,833
22,396
0
0
0
0
0
0
0
2,900
2,900
3,118
3,351
3,603
3,873
4,163
0
0
0
0
0
0
0
200
200
215
231
248
267
287
9,300
9,300
9,998
10,747
11,553
12,420
13,351
0
0
0
0
0
0
0
150
150
161
173
186
200
215
550
550
591
636
683
735
790
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6,000
6,000
6,450
6,934
7,454
8,013
8,614
0
0
0
0
0
0
0
0
0
0
0
0
0
0
100
100
108
116
124
134
144
0
0
0
0
0
0
0
250
250
269
289
311
334
359
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
350
350
376
404
435
467
502
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,467
1,467
1,577
1,695
1,822
1,959
2,106
6,937
6,937
9,008
11,168
12,338
13,508
14,678
6,400
61400
6,880
7,396
7,951
8,547
9,188
35 Sub -Total Utility Expense 50,204 50,204 55,520 61,168 66,088 71,289 76,793
36 Utility Operating Income 88,540 129,948 167,833 185,585 204,065 222,263 240,160
(a) Customers are assumed to increase by 12 ERCs per month.
(b) Expenses are assumed to increase by 7.5% per year.
LAKE HILLS UTILITIES
- Projected Revenues and Expenditures
Limited Growth Scenario
Line
No. Description
Operating Revenues
Water
1 Residential (a)
2 Commercial
3 Irrigation
4 Guaranteed Rev
5 Initial Connection Fees
6 Reconnection Fees
7 Other (IRR)
8 Misc. Service Charges
9 Interest Income
10 Sub -Total Operating Revenues
System Growth
TOTAL Operating Revenue
Operating Expenses (b)
I Salaries and Wages - Employees
2 Salaries and Wages - Officers, Director
and Majority Stockholders
3 Repairs & Maintenance
4 Payroll Taxes
5 Purchased Water
6 Purchased Power
7 Fuel for Power Purchased
8 Chemicals
9 Materials and Supplies
Contractual Services
10 Administration
11 Accounting
12 Legal
13 External Contracts
14 Laboratory & Engineering
15 Administration
16 Emergency Telephone Lines
17 Telephone
18 Rents
19 Transportation Expense
Insurance
20 Vehicle
21 General Liability
22 Workman's Compensation
23 Other
24 Customer Billing
25 Billing Supplies & Exp.
26 Computer Supplies & Exp.
27 Office Supplies & Stationary
28 Travel & Lodging
29 Trade & Business Memberships
30 Regulatory Commission Expenses
31 Bad Debt Expense
32 Miscellaneous Expense
33 Renewal & Replacement
34 Administrative Allocation
Total Water Under
City's Ownership FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000
120,388
136,800
144,000
167,400
190,800
214,200
237,600
1,651
1,651
1,651
1,651
1,651
1,651
1,651
1,810
1,810
1,810
1,810
1,810
1,810
1,810
11,360
3,182
3,182
3,182
3,182
3,182
3,182
1,215
203
203
203
203
203
203
2,055
2,055
2,055
2,055
2,055
2,055
2,055
0
0
0
0
0
0
0
265
265
265
265
265
265
265
0
0
0
0
0
0
0
138,744
145,966
153,166
176,566
199,966
223,366
246,766
0
0
0
0
0
0
0
138,744
145,966
153,166
176,566
199,966
223,366
246,766
15,600
15,600
16,068
16,550
17,047
17,558
18,085
0
0
0
0
0
0
0
2,900
2,900
2,987
3,077
3,169
3,264
3,362
0
0
0
0
0
0
0
200
200
206
212
219
225
232
9,300
9,300
9,579
9,866
10,162
10,467
10,781
0
0
0
0
0
0
0
150
150
155
159
164
169
174
550
550
567
583
601
619
638
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6,000
6,000
6,180
6,365
6,556
6,753
6,956
0
0
0
0
0
0
0
0
0
0
0
0
0
0
100
100
103
106
109
113
116
0
0
0
0
0
0
0
250
250
258
265
273
281
290
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
350
350
361
371
382
394
406
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,467
1,467
1,511
1,556
1,603
1,651
1,701
6,937
6,937
7,298
7,658
8,828
9,998
11,168
6,400
6,400
6,592
6,790
6,993
7,203
7,419
35 Sub -Total Utility Expense 50,204 50,204 51,863 53,560 56,107 58,696 61,327
36 Utility Operating Income 88,540 95,762 101,303 123,006 143,859 164,670 185,439
(a) Customers are assumed to increase by 2 ERCs per month.
(b) Expenses are assumed to increase by 3% per year.
LAKE HILLS UTILITIES
- Projected Revenues and Expenditures
Moderate Growth Scenario
Line Total Water Under
No. Description City's Ownership FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000
Operating Revenues
Water
1 Residential (a)
2 Commercial
3 Irrigation
4 Guaranteed Rev
5 Initial Connection Fees
6 Roconnection Fees
7 Other (IRR)
8 Misc. Service Charges
9 Interest Income
10 Sub -Total Operating Revenues
System Growth
TOTAL Operating Revenue
Operating Expenses (b)
I Salaries and Wages - Employees
2 Salaries and Wages - Officers, Director
and Majority Stockholder
3 Repairs & Maintenance
4 Payroll Taxes
5 Purchased Water
6 Purchased Power
7 Fuel for Power Purchased
8 Chemicals
9 Materials and Supplies
Contractual Services
10 Administration
11 Accounting
12 Legal
13 External Contracts
14 - Laboratory & Engineering
15 - Administration
16 Emergency Telephone Lines
17 Telephone
18 Rents
19 Transportation Expense
Insurance
20 Vehicle
21 General Liability
22 Workman's Compensation
23 Other
24 Customer Billing
25 - Billing Supplies & Exp.
26 - Computer Supplies & Exp.
27 Office Supplies & Stationary
28 Travel & Lodging
29 Trade & Business Memberships
30 Regulatory Commission Expenses
31 Bad Debt Expense
32 Miscellaneous Expense
33 Renewal & Replacement
34 Administrative Allocation
120,388
s
144,600
166,200
189,600
213,000
236,400
259,800
1,651
1,651
1,651
1,651
1,651
1,651
1,651
1,810
1,810
1,810
1,810
1,810
1,810
1,810
11,360
11,360
11,360
11,360
11,360
11,360
11,360
1,215
1,080
1,080
1,080
1,080
1'080
1,080
2,055
2,055
2,055
2,055
2,055
2,055
2,055
0
0
0
0
0
0
0
265
265
265
265
265
265
265
0
0
0
0
0
0
0
138,744
162,821
194,421
207,821
231,221
254,621
278,021
0
0
0
0
0
0
0
138,744
162,821
194,421
207,821
231,221
254,621
278,021
15,600
15,600
16,380
17,199
18,059
18,962
19,910
s
0
0
0
0
0
0
0
2,900
2,900
3,045
3,197
3,357
3,525
3,701
0
0
0
0
0
0
0
200
200
210
221
232
243
255
9,300
9,300
9,765
10,253
10,766
11,304
11,869
0
0
0
0
0
0
0
150
150
158
165
174
182
191
550
550
578
606
637
669
702
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6,000
6,000
6,300
6,615
6,946
7,293
7,658
0
0
0
0
0
0
0
0
0
0
0
0
0
0
100
100
105
110
116
122
128
0
0
0
0
0
0
0
250
250
263
276
289
304
319
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
350
350
368
386
405
425
447
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,467
1,467
1,540
1,617
1,698
1,783
1,872
6,937
6,937
8,141
9,221
10,391
11,561
12,731
6,400
61400
6,720
71056
7,409
7.779
8,168
35 Sub -Total Utility Expense 50,204 50,204 53,571
36 Utility Operating Income 88,540 112,617 130,850
(a) Customers are assumed to increase by 6 ERCs per month.
(b) Expenses are assumed to increase by 5.0% per year.
56,923 60,478 64,152 67,952
150,898 170,743 190,469 210,069
Appendix C
City of Clermont
Utility System Revenue Bonds
Sources and Uses of Funds
Lake Hills Utilities, Inc.
SOURCES
Par Amount of Bonds
Interest Earnings on Construction Fund
Original Issue Premium/(Discount)
Accrued Interest
Total Sources
USES
Construction Fund (1)
Bond Insurance
Debt Service Reserve Fund
Capitalized Interest
Underwriters Discount
Accrued Interest
Costs of Issuance
Contingency
Total Uses
Dated Date
Delivery Date
First Interest Payment Date
Adjustment to Interest Rates
Assumptions
0.650%
1.200%
5/l/95
5/1/95
12/1/95
0.000%
Target Debt Service
915,000.00
0.00
0.00
0.00
915,000.00
769,709.43
13,515.57
70,795.00
0.00
10.980.00
0.00
50,000.00
0.00
915,000.00
68,500.00
1) Dated and Delivery Date May 1, 1995.
2) Interest Payments Semiannually on June 1 and December 1, with Principal Paid in December.
3) Interest Rates are based on Delphis 94 on 2/16/95
4) Cost of Issuance is $50,000.
5) Thirty-year amoritization schedule.
6) First Interest Payment is Dec. 1, 1995
Coverage:
Net Available for Debt
88,540.00
Coverage Factor
1.25
Amount Available for Debt
70,832.00
Maximum Annual Debt
70,795.00
Prepared by PFM Page 1 2/22195 4:22 PM
1
City of Clermont
Utility System Revenue Bonds
Acquisition Debt Service
Lake Hills Utilities, Inc.
Capitalized Net Annual
Dale Principal Coupon Interest Debt Service Interest Debt Service Debt Service
5/1/95
6/1/95
12/1/95
32,835.83
32,835.83
0.00
32,835.83
32,835.83
6/1/96
28,145.00
28,145.00
0.00
28,145.00
12/1/96
10,000.00
4.950%
28,145.00
38,145.00
0.00
38,145.00
66.290.00
6/1/97
27,897.50
27,897.50
0.00
27,897.50
12/1/97
15,000.00
5.150%
27,897.50
42,897.50
0.00
42,897.50
70,795.00
6/1/98
27,511.25
27,511.25
0.00
27,511.25
12/1/98
15,000.00
5.250%
27,511.25
42,511.25
0.00
42,511.25
70,022.50
6/1/99
27,117.50
27,117.50
0.00
27,117.50
12/1/99
15,000.00
5.350%
27,117.50
42,117.50
0.00
42,117.50
69,235.00
6/1/00
26,716.25
26,716.25
0.00
26,716.25
12/1/00
15,000.00
5.450%
26,716.25
41,716.25
0.00
41,716.25
68,432.50
6/1/01
26,307.50
26,307.50
0.00
26,307.50
12/1/01
15,000.00
5.500%
26,307.50
41,307.50
0.00
41,307.50
67,615.00
6/1/02
25,895.00
25,895.00
0.00
25,895.00
12/1/02
15,000.00
5.550%
25,895.00
40,895.00
0.00
40,895.00
66,790.00
6/1/03
25,478.75
25,478.75
0.00
25,478.75
12/1/03
15,000.00
5.600%
25,478.75
40,478.75
0.00
40,478.75
65,957.50
6/1/04
25,058.75
25,058.75
0.00
25,058.75
12/1/04
20,000.00
5.650%
25,058.75
45,058.75
0.00
45,058.75
70,117.50
6/1/05
24,493.75
24,493.75
0.00
24,493.75
12/1/05
20,000.00
5.750%
24,493.75
44,493.75
0.00
44,493.75
68,987.50
611/06
23,918.75
23,918.75
0.00
23,918.75
12/1/06
20,000.00
5.850%
23,918.75
43,918.75
0.00
43,918.75
67,837.50
6/1107
23,333.75
23,333.75
0.00
23,333.75
12/1/07
20,000.00
5.950%
23,333.75
43,333.75
0.00
43,333.75
66,667.50
6/1/08
22,738.75
22.738.75
0.00
22,738.75
12/1/08
25,000.00
6.000%
22,738.75
47,738.75
0.00
47,738.75
70,477.50
6/l/09
21,988.75
21,988.75
0.00
21,988.75
12/1/09
25,000.00
6.050%
21,988.75
46,988.75
0.00
46,988.75
68,977.50
6/1/10
21,232.50
21,232.50
0.00
21.232.50
12/l/10
25,000.00
6.100%
21,232.50
46,232.50
0.00
46,232.50
67,465.00
6/1/11
20,470.00
20,470.00
0.00
20,470.00
12/1/11
25,000.00
6.150%
20,470.00
45,470.00
0.00
45,470.00
65,940.00
6/1/12
19,701.25
19,701.25
0.00
19,701.25
12/1112
30,000.00
6.200%
19,701.25
49,701.25
0.00
49,701.25
69,402.50
6/1/13
18,771.25
18,771.25
0.00
18,771.25
12/1/13
30,000.00
6.250%
18,771.25
48,771.25
0.00
48,771.25
67,542.50
6/1/14
17,833.75
17,833.75
0.00
17,833.75
12/1/14
35,000.00
6.300%
17,833.75
52,833.75
0.00
52,833.75
70,667.50
6/1/15
16,731.25
16,731.25
0.00
16,731.25
12/1115
35,000.00
6.300%
16,731.25
51,731.25
0.00
51,731.25
68,462.50
6/1/16
15,628.75
15,628.75
0.00
15,628.75
12/1/16
35,000.00
6.350%
15,628.75
50,628.75
0.00
50,628.75
66,257.50
6/1/17
14,517.50
14,517.50
0.00
14,517.50
12/1/17
40,000.00
6.350%
14,517.50
54,517.50
0.00
54,517.50
69,035.00
6/1/18
13,247.50
13,247.50
0.00
13,247.50
12/1/18
40,000.00
6.350%
13,247.50
53,247.50
0.00
53,247.50
66,495.00
6/1/19
11,977.50
11,977.50
0.00
11,977.50
12/1119
45,000.00
6.350%
11,977.50
56,977.50
0.00
56,977.50
68,955.00
6/1/20
10,548.75
10,548.75
0.00
10,548.75
12/1/20
45,000.00
6.350%
10,548.75
55,548.75
0.00
55,548.75
66,097.50
6/1121
9.120.00
9,120.00
0.00
9,120.00
12/1121
50,000.00
6.400%
9,120.00
59,120.00
0.00
59,120.00
68,240.00
6/1122
7,520.00
7,520.00
0.00
7,520.00
12/1/22
55,000.00
6.400%
7,520.00
62,520.00
0.00
62,520.00
70,040.00
6/1123
5,760.00
5,760.00
0.00
5,760.00
12/1/23
55,000.00
6.400%
5,760.00
60,760.00
0.00
60,760.00
66,520.00
6/1/24
4,000.00
4,000.00
0.00
4,000.00
12/1/24
60,000.00
6.400%
4,000.00
64,000.00
0.00
64,000.00
68.000.00
6/l/25
2,080.00
2,080.00
0.00
2,080.00
12/l/25
65,000.00
6.400%
2,080.00
67,080.00
0.00
67,080.00
69,160.00
915,000.00
1,164,318.33
2,079,318.33
0.00
2,079,318.33
2,079,318.33
Average Annual Debt Service 68,192.77
Prepared by PFM
Page 2
2122/954:22 PM
Appendix D
City of Clermont
Going Concern Valuation at 8.00%
Lake Hills Utilities Inc. - Limited Growth Scenario
Present
Projected Present Value of
Date Net Revenues Value Factor Revenues
5/l/95
6/l/95
12/1/95 95,762.00
611/96
12/1/96 101,303.00
6/l/97
12/1/97 123,006.00
6/l/98
12/1198 143,859.00
6/l/99
12/1/99 164,670.00
6/l/00
12/1/00 185,439.00
6/l/01
12/1/01 185,439.00
6/l/02
12/1/02 185,439.00
6/l/03
1211/03 185,439.00
6/l/04
12/1/04 185,439.00
6/l/05
12/1105 185,439.00
6/l/06
12/1/06 185,439.00
6/l/07
12/1/07 185,439.00
6/l/08
12/1/08 185,439.00
6/l/09
12/1/09 185,439.00
6/1/10
12/1/10 185,439.00
6/l/11
12/1/11 185,439.00
6/1/12
12/1/12 185,439.00
6/1/13
12/1/13 185,439.00
6/1/14
12/1/14 185,439.00
6/1/15
12/1/15 185,439.00
6/1/16
12/1/16 185,439.00
6/1/17
12/1/17 185,439.00
6/1/18
12/1/18 185,439.00
611/19
1211/19 185,439.00
611/20
12/1/20 185,439.00
6/l/21
12/1/21 185,439.00
6/l/22
12/1122 185,439.00
6/l/23
12/1/23 185,439.00
6/l/24
1211/24 185,439.00
6/l/25
12/1/25 185,439.00
5,450,014.00
Going Concern Value
0.95527359 91,478.91
0.88320413 89,471.23
0.81657187 100,443.24
0.75496659 108,608.74
0.69800905 114,941.15
0.64534861 119,672.80
0.59666107 110,644.23
0.55164670 102,296.81
0.51002838 94,579.15
0.47154991 87,443.74
0.43597440 80,846.66
0.40308284 74,747.28
0.37267274 69,108.06
0.34455690 63,894.29
0.31856222 59,073.86
0.29452868 54,617.10
0.27230832 50,496.58
0.25176435 46,686.93
0.23277029 43,164.69
0.21520922 39,908.18
0.19897302 36,897.36
0.18396174 34,113.68
0.17008297 31,540.02
0.15725127 29,160.52
0.14538764 26,960.54
0.13441905 24,926.53
0.12427796 23,045.98
0.11490196 21,307.31
0.10623332 19,699.80
0.09821868 18,213.57
0.09080869 16,839.47
1,884,828.42
1,884,828.42
Prepared by PFM Page 1 2/22/95 4:28 PM
City of Clermont
Going Concern Valuation at 10.00%
Lake Hills Utilities Inc. - Limited Growth Scenario
Present
Projected Present Value of
Date Net Revenues Value Factor Revenues
5/1/95
6/1/95
12/1/95
95.762.00
0.94466788
90,463.29
6/1/96
12/1196
101,503.00
0.85684162
86.900.63
6/1/97
12/1/97
123,006.00
0.77718061
95,597.88
6/1/98
12/1/99
143,859.00
0.70492572
101,409.91
6/l/99
12/1/99
164,670.00
0.63938841
105,288.09
6/1/00
12/1/00
185,439.00
0.57994413
107,544.26
6/1/01
12/1/01
185,439.00
0.52602643
97,545.81
6/1/02
1211/02
185,439.00
0.47712147
88,476.93
6/1/03
1211/03
185,439.00
0.43276324
80,251.18
6/1/04
12/1/04
185,439.00
0.39252902
72,790.19
6/1105
12/1/05
185,439.00
0.35603539
66,022.85
6/1/06
12/1/06
185,439.00
0.32293459
59,884.67
6/1/07
12/1/07
185,439.00
0.29291120
54,317.16
6/1/08
12/1/08
185,439.00
0.26567909
49,267.26
6/1/09
12/1/09
185,439.00
0.24097877
44,686.86
611/10
12/1/10
185,439.00
0.21857484
40,532.30
6/1/11
12/1/11
185,439.00
0.19825383
36,763.99
6/1/12
12/1/12
185,439.00
0.17982207
33,346.02
6/1/13
12/1/13
185p39.00
0.16310391
30,245.83
6/1/14
12/1/14
185,439.00
0.14794006
27,433.86
6/1115
12/1/15
185,439.00
0.13418599
24,883.32
611/16
12/1/16
185,439.00
0.12171065
22,569.90
6/1117
12/1/17
185,439.00
0.11039515
20,471.57
6/1/18
12/1/18
185,439.00
0.10013165
18,568.31
6/1/19
12/1/19
185,439.00
0.09082236
16,842.01
6/1/20
1211/20
185,439.00
0.08237856
15,276.20
6/1121
12/1/21
185,439.00
0.07471978
13,855.96
6/1122
12/1/22
185,439.00
0.06777305
12,567.77
611123
12/1/23
185,439.00
OM147215
11,399.33
6/1/24
12/1/24
185,439.00
0.05575705
10,339.53
611/25
12/1/25
185,439.00
0.05057329
9,378.26
5,450,014.00
1,544,821.12
Going Concern Value 1,544,821.12
Prepared by PFM Page 1 2221954:30 PM
Appendix E
Ch. 180 _ MUNICIPAL PUBLIC WORKS
F.S. 1993
180.301 Purchase or sale of water, sewer, or
wastewater reuse utility by municipality. —No munici-
pality may purchase or sell a water, sewer, or waste-
water reuse utility that provides service to the public for
compensation, until the governing body of the munici-
pality has held a public hearing on the purchase or sale
and made a determination that the purchase or sale is
in the public interest. In determining if the purchase or
sale is in the public interest, the municipality shall con-
sider, at a minimum, the following:
(1) The most recent available income and expense
statement for the utility;
(2) The most recent available balance sheet for the
utility, listing assets and liabilities and clearly showing
the amount of contributions -in -aid -of -construction and
the accumulated depreciation thereon;
(3) A statement of the existing rate base of the utility
for regulatory purposes;
(4) The physical condition of the utility facilities
being purchased or sold;
(5) The reasonableness of the purchase or sales
price and terms;
(6) The impacts of the purchase or sale on utility
customers, both positive and negative;
(7) Any additional investment required and the abil-
ity and willingness of the purchaser to make that invest-
ment, whether the purchaser is the municipality or the
entity purchasing the utility from the municipality;
(8) The alternatives to the purchase or sale and the
potential impact on utility customers if the purchase or
sale is not made; and
(9) The ability of the purchaser to provide and main-
tain high -quality and cost-effective utility service,
whether the purchaser is the municipality or the entity
purchasing the utility from the municipality.
The municipality shall prepare a statement showing that
the purchase or sale is in the public interest, including
a summary of the purchaser's experience in water,
sewer, or wastewater reuse utility operation and a show-
ing of financial ability to provide the service, whether the
purchaser is the municipality or the entity purchasing
the utility from the municipality.
History.—s. 2, ch. 84-64; s. 6, ch. 93-51.
14 B 4
t- 7- V L
1t 94 , f4,///e/ '
SypA Np 139 WATER AND SEVER CRAPTER 25-30
(1) the filing fee required by s. 367.141, F.S.
(m) The rate base of the transferor as of the date of transfer or if the transfer
has not taken place the most current date available.
(n) The proposed rate base of the transferee as of the date of transfer.
(o) A statement setting out the reasons for the inclusion of an acquisition
adjustment if one is requested.
(p) If the books and records of the transferor are not available for inspection by
the Commission, a statement by the transferee that a good faith, extensive effort has
been made to obtain such books and records for inspection by the Commission.
Specific Authority: 367.121. F.S.
Law Inplerented: 367.071, F.S.
History: New 6/10/7S, Amended 4/5/81, 8130/83, formerly 25-10.07, Transferred from
25-10.007 and Amended 11/9/86.
25-30.041 Application for Approval of Transfer to a 6overmental Agency.
(1) When a utility proposes to sell or transfer, to a governmental agency, its
facilities, or any portion of those facilities, or majority organization control, the
utility shall apply to the Commission for approval of the transaction.
(2) the application for approval shall include:
(a) the name and address of the utility and its authorized representative;
(b) the name and address of the buyer and its authorized representative;
(c) evidence that the buyer requested and received from the Commission the
utility's income and expense statement, balance sheet, and statement of rate base for
regulatory purposes and contributions -in -aid -of -construction;
(d) the date on which the buyer proposes to or did take official action to acquire
the utility:
(e) the contract between the utility and the buyer;
(f) a statement as to the disposition of customer deposits and interest entered on
those customer deposits;
(g) a statement regarding the amount of regulatory assessment fees owed to the
Comission.
(3) Upon receipt of items (2)(a), (b), (c) and (d), the Commission will issue an
order acknowledging that the facilities or organizational control have been acquired by
the governmental agency.
(4) Upon receipt of items (2)(e), (f) and (g), payment of the regulatory assessment
fee and completion of pending proceedings before the Commission, the Commission will
issue an order cancelling the utility's certificate.
Specific Authority: 367.121(1)(f), F.S.
Law Irglenented: 367.071, 367.151. F.S.
History: New I1/9/&6.
25-30.045 Application for Mended Certificate Pursuant to an Extension of Service
Area Pursuant to Either 1.367.061, F.S. or s. 367.041. F.S.
(1) An application for an amended certificate pursuant to an extension of service
under the provisions of s. 367.061, F.S., shall be made after service has been provided
for the area noticed and no later than one year from the date the last required notice
was given.
(2) An extension of certificated territory may be accomplished by complying with
the statutory requirements and rules of either s. 367.041 or s. 367.061, F.S. and
25-30.030. 25-30.035, or this rule.
30-6
Appendix F
FLORIDA PUBLIC SERVICE COMMISSION
INSTRUCTIONS FOR COMPLETING APPLICATION FCRM
FOR TRANSFER TO GOVERNMENTAL AGENCY
(Section 367.071, Florida Statutes)
General Information
The attached form has been prepared by the Florida Public Service
Commission, to aid utilities under its jurisdiction to file information
required by Chapter 367, Florida Statutes, and Chapter 25-30, Florida
Administrative Code. Any questions regarding this form should be directed to
the Division of Water and Sewer. Bureau of Certification (904-488-8482).
Instructions
1. Fill out the attached application form completely and accurately.
2. Pursuant to Section 367.071(3)(a), Florida Statutes, a governmental
agency, prior to taking any official action, shall request from the commission
the utility's most recent available income and expense statement, balance
sheet and statement of rate base for regulatory purposes and
contributions - in -aid -of -construction.
3. If the space provided for your answer is insufficient, put the
information on a separate piece of paper and mark the answer and the
attachments as Exhibit 1, 2, 3, etc.
4. If the date of closing has occurred, attach the certificate(s) to the
application.
5. Notarize the completed application form.
6. The original and two copies of the completed application, and one copy
each of the territory and system maps, if applicable, should be mailed to:
Director, Division of Records and Reporting
Florida Public Service Commission
101 East Gaines Street
Tallahassee, Florida 32399-0850
PART IV AFFIDAVIT
I (applicant) do solemnly
swear or affirm that the facts stated in the foregoing application and
all exhibits attached thereto are true and correct and that said
statements of fact thereto constitute a complete statement of the
matter to which it relates.
BY:
Subscribed and sworn to before me this
of 19
(Applicant)
Name and Title
Notary Public
*If the applicant is a corporation, the affidavit must be made by the
president or other officer authorized by the by-laws of the corporation to act
for it. If the applicant is a partnership or association, a member of the
organization authorized to make such affidavit shall execute same.
0
If only a portion of the utility's facilities is being transferred, a
revised territory description and map of the utility's remaining
territory must be provided, as discussed below. If the utility's entire
facilities are being transferred, please disregard Part II, (A) & (B).
PART II CERTIFICATION
A) Territory Description
1) Exhibit - An accurate description of the utility's revised
territory, described by sections, quarter sections and/or by metes
and bounds, using section, township, range and county references.
Note: A description by a recorded plat book and page and/or by a
subdivision name is not an acceptable territory description. A
sample description is attached showing the outline to be followed.
B) Territory Maps
1) Exhibit - An official county or city property tax map
showing the utility's revised territory, including section, township
and range.
Note: The map shall show the revised territory, and the location of
the treatment plant(s). The map shall be of a scale of 1" = 200' or
1" = 400'.
PART III FINANCIAL INFORMATION
A) Exhibit - A copy of the proposed contract for sale. The
contract for sale shall make provisions for disposition of:
i) Customer deposits and the accumulated interest
2) Payment of accrued regulatory assessment fees
B) Exhibit - A signed affidavit as to the dates the buyer
requested and received from the Commission the utility's income and
expense statement, balance sheet and statement of rate base for
regulatory purposes and contributions -in -aid -of -construction.
C) Indicate the date on which the buyer proposes to take official action
to acquire the utility:
D) Indicate the anticipated closing date:
The applicant shall surrender its certificate(s) to the Commission for
cancellation immediately after closing.
APPLICATION FOR SALE TO GOVERNMENTAL AGENCY
PURSUANT TO SECTION 367.071(3)(a), FLORIDA STATUTES
TO: Director, Division of Records and Reporting
Florida Public Service Commission
101 East Gaines Street
Tallahassee, Florida 32399-0850
The undersigned hereby makes application for the approval of the (sale) or
(transfer) of (all) or (part) of the facilities operated under Water
Certificate No. and/or Sewer Certificate No. located
in County, Florida, and submits the following:
PART I APPLICATION TNFORMATTON
A) The full name (as it appears on the certificate), mailing address and
telephone number of the seller:
Name of utility and/or seller Phone No.
Office street address
City State Zip ::ode
Mailing address if different from above
8) The full name, address and telephone number of the governmental
agency:
Name of agency Pnone No.
Street address
City State Zip Code
Mailing address if different from above
C) The name, address and telephone number of a representative of the
utility to contact concerning this application:
Name Phone No.
Street address
City State Zip Code
D) The name, address and telephone number of the governmental agency's
representative:
Name Phone No.
Street address
City State Zip Code
PSC/WAS 12 (Rev. 4/89)
S
5 11:27 $8136936384 PUBLIC FIN MGMT
IIO 002
PFM
tel: 1 I
ninandal and hwesw= Aldvisac;
590o EnterprLw Parkway
rom Mycrs, FL 339O5
813-6934117 (Fzc) 813-693-6584
February 22, 1995
MEMORANDUM
To: Sohn Spriagstead
Joe Van Zile
x
From: Jerry L. WOO _
Public F�r�alicial Management, Inc.
<r,
Re: Lake Hills Utilities Acquisition
Enclosed is a preliminary version of PFM's analysis of the Lake H21 Utilities, Inc.
acquisition. As is apparent, there are still some corrections to be made and additional
work to be accomplished before tomorrow's meeting_ The most rlaruig of these is the
information requested on Anticipated Expenses upon conversion of the System to the
city.
Additionally, PFM will complete the section on Financing, Altemadves and will
include an appendix, which wig include PFM's numerical analyses as well as some
documents required to be filed with the State upon completion of a private utility systtm
acquisition and the necessary requirements for public meetings under Florida Statutes
1$0.301.
Please review the enclosed materials for ac=acy as well as appropriateness. Both
Patti Garrett and I will be in the office today to receive your comments.
I appreciate your prompt attention to this matter.
Enclosure
11
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02 22' 05 11: �7 '$815603638 S PUBLIC FIN nSCahST tO QU3
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�1
CITY OF CLERMONT, FLORIDA
U
Labe Hills Utilities, Inc.
Historical Information, Financial Information and
Formulation of a Purchase Price
6 6
The City of Clermont, Florida (the "City") is located iJn Lake County in the heart of central
Florida. The City encompasses a five square mile area approximately thirty miles west of
Orlando and thirty miles southeast of the City of Leesburg. The City currently provides water
and wastewater service to approximately 2,700 customers within the City limits. The City's goal
is to increase theif service area toprovide the utility service to the annexed areas east of the City.
The purchase of Lake Hills Utilities, Inc. ("LHU") will allow the City to meet these objectives
without the necessity of constructing a second well and the related pumping and distribution
system associated with this endeavor. The purchase and use of LHU to supplement the City's
newly constructed well (in addition to the associated customer bast and Water Rate Base) is
anticipated to be more economical than the construction of a second well east of Clermont_
The City began negotiations with LHU in 1994, at this time LHU was requesting a purchase
price of $2,500,000. LHU subsequently proposed a purchase price (to be paid in cash) of
$1,500,000 for the System in the beginning of 1995. The Proposed Sale Agreement subn-atted
by LHU will become void after April 15, 1995. The System. includes the water treatment and
distdbution system which serves the Greater Hills and Cheater Pines Subdivisions. The System
currently provides service to approximately 443 residential water customers.
This Formulation of a Purchase Price for the acquisition is structured around the following
principals: (i) the use of the Public Service Commission ("PSC") app-roved rates which are
currently being utilized by L U, and (ii) establishing level annual debt for 30 years based on
the net revenue currently produced by the customers of the system.
Lake Hills, tTtiliti_ Inc
Springstead Engineering, Inc. ("Springstead") estimates that LHU serves approximately 443
residential customers.
E
02/22; 95 11; .8 '$8136936384 PUBLIC FIN 11 WIT
4-'-J U U 4
The Water System
nd" "on: Inspection of the facilities indicated that the system is in overall good
condition. The wells and system are in good standing with Florida Department of
EnviTonmental Protection.
R m ina n aft^: S rinastead estimates that the system can service approximately
u� _ S-p P
818 ERUs with Well Number One. This assumes that Well Number Two is inoperable
and the system maintains 500 GPM for Fire Flaw protection.
Ci�st_.m. Approa-imateiy 443 water customers, build out of existing construction
projects is estimated to be appro?imately 1,692 residential units (estimated by
Springstead).
S'
02"22"95 11:29 �`s13u03u3s!
�..�..,�PUBLIC FIN MGMT 12005
L I- NTORICAL FINANCIAL DATA AND FORMULATION OF A NET REVENUE
BASE
Public Financial Management, Inc. ("PFM") reviewed and assessed the c=cnt financial
information provided by LHU. LHU provided the past two years of financial reports, filed with
the Florida Public Service Conunission (TSC") as well as other financial projections based on
the most recent year of operations. PFM analyzed the financial and economic factors and
provided the City with a conversion of operations from private to City (or public) ownership. A
copy of that conversion table including two years of historical data, is provided as Appendix A.
The estimated net revenues under City ownership is $90,757 (This figure needs to be revised to
reflect changes in Expenses due to City ownership).
— h 1
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d�laOasU1�!
--- _ PUBLIC FIN MGMI
WJUUt
lx. RATES
LHU's current rates have been approved by the PSC and are based upon (i) guaranteed
revenues of $9.11 per month per customer, and (ii) $1.13 per 1,000 of water used per customer.
Initial connection fees are $15.00 per customer.
PFM's analysis of MU was based upon the continuation of the above rates for the system's
customers. It is PFM's understanding that Mr. Leonard Baird, City of Clermont Attorney, is of
the opinion that the above rates are legal and appropriate. Any revisions to the water system
rates could negatively irmact PFM's analysis_
J4 ly. JU �O1JUa`1JV.J-4 rUbL1C: FIA AIG111
idJ uu7
HL FORMULATION OF A PURCHASE PRICE
When determining the value of a utility system several methods are generally utilized. There
are five commonly used techniques for determining the value of a utility which are (i) book
value; (A) depreciated replacement valuation; (JR) rate based or debt capacity; (iv) going concern
value; and (v) comparables_ Each method must analyze different aspects of the utility, such as:
age of the facility, net revenues of the existing and future users, etc. Bstorical data also assists
in the perspective of the utility and assists in predicting future trends.
Rook Value
The book value of a utility is the original cost of the physical assets minus
accumulated depreciation. Contributions -in -Aid -of -Construction ("CIAC") are
subtracted from utility 'assets, Since they axe assets (typically pipelines) that are
donated to the utility. Amortization of CIAC is added to the book value and is the
PSC's method of accounting for the depreciation of the CAC.
ft Late Replacement Value
There are several different variations of this method; however, each method gives
an approximate current value of the assets while considering the age of the assets.
This method most closely represents the true value of a utility's fixed assets, but it
does not account for a lack of preventative maintenance or value of the franchise
area.
De t Cap
The debt capacity of a utility is the amount of debt (bond or loan) that the net
revenue can support for the entire duration of the bond/loan, assuming an interest
rate, amortization schedule and a debt service coverage ratio. This valuation
method closely approximates a utility's existing worth, but not the future worth of
the franchise nor the condition of the facilities.
02'= 95 11: 3Q $8136936384 PUBLIC FIN MGMT_.
�- - -
a poh
i.
GQi nn � onCern
The value of a utility as a going concern is calculated by determining the present
worth of the future net revenues. This method has lithe meaning to a public owner
because the public entity can not obtain funding based on the present worth of
fawre net revenues.
Compaq
This method analyzes the selling price and rate base of other comparable utility
system-: This method is rarely implemented since each utility system and its
circumstances is unique.
0
"u�1JtiJ3bJb4
—. PUBLIC FIN MGUT
ZUU9
IV_ METHODS OF FINANCING
Typical financing methods include, but are not limited to (i) revenue bonds, (ii) owncrs
bonds, (iii) futures bonds, and (iv) special assessment bonds assessments. In the proposed Sale
Agreement, LHU has requested that the City deliver the entire purchase price of LHU in cash
upon closing the acquisition,
Revenue , Rinnds
Revenue Bonds are bonds payable from a specific source of revenue. These bonds do not
pledge the full faith and credit of the City. Only revenues generated by an enterprise activity or
revenues from other specified non ad valorem tax sources may be pledged as collateral for
revenue bonds. No referendum or voter approval is needed_
The City may wish to explore two different options with respect to revenue bonds. The first
option is the pledge of a Consolidated Utility System. This would combine the revenue pledges
of the existing water and wastewater' system to the LHU System. The Consolidated Utility
System pledge would strengthen the credit of the bonds and potentially allow for more flexibility
and lower borrowing costs. However, a consolidated pledge would provide for revenues from
the existing utility: systems to subsidize debt payments of the LHU System if LHU's revenues
were not sufficient to repay its debt service.
F utuC�Bonds
To come later,
Owner'$ Bonds
To come later'
Special Ass=ment Bonds .
As provided by Florida Statutes, special assessment bonds are bonds underwritten by charges
imposed against property in a particular locale because the property receives special benefit from
some public improvement. Special assessment bonds are paid from assessments levied against
benefited property according to the value of the benefit received. Essentially, each benefited
property pays its pro-rata share of the cost of the facility or service based upon its proportionate
share of the benefits.
Special assessment bonds do not pledge the full faith and credit of the City. Bondholders
may only look to the special assessments levied against lands receiving the benefit for payment
of such bonds. Special assessment bonds do not require referendum or approval by electors with
the area to be assessed prior to sale.
0;.1 2 .' 95 11: 31 V8136936364
— - — - PUBLIC FIN MGMT 10010
Us .r .har2eS and Gash
City surplus fund revenues could be used to fund all or a portion of utility projects or
acquisitions.
If excess user charge revenues are available, the funds could be used to fund all or part of
required improvement or expansions. Revenues generated by utility systems can be utilized for
repayment of debt service, fund general operation and maintenance expenses, payment for
renewal and replacement, as well as funding of capital improvements.
]UNg7ERIM FINANCING
It is PF'M`s understanding that the City plans to access the capital markets with a Revenue
Bond issue in the second half of 1995. This leaves a funding gap between the acquisition date of
LHU and the source of funds to be made available from the proposed bond issue. In order to
mitigate this tinning difference, there are several methods of interim financing which may be
utilized by the City.
+• h .
Llser _ha es'and Cash
The City could use available funds in either the General or Utility fund to purchase LRU.
This should be accomplished in conjunction with a reimbursement resolution which would allow
the city to "re --pay" itself through a debt financing at a later date.
While utilizing the City's cash is an inexpensive method of borrowing funds, it could leave
the City in a weak cash position if an unexpected emergency occurred before repayment could
be made. In addition, the City would not be utilizing its "tax exempt" status in borrowing funds.
This could mean that the "opportunity cost" associated with the lost investment earnings on the
expended proceeds could exceed the interest cost associated with a tax exempt financing.
Line of Credit
The City could negotiate a Line of Credit with either its depository bank or another
commercial bank or institutional investor. A Line of Credit would be structured to allow the
City access to moneys on an as needed basis up to a credit limit. This method of borrowing
circumvents many of the costs associated with public offerings while still providing a
competitive selection of service providers. In addition, a Line of Credit could be utilized by the
City and the Utility System as a source of funds beyond that necessary for the acquisition.
Bond Andeigat.ion Notes
Notes that are issued in anticipation of a later permanent bond issue, usually payable from
the proceeds of the bonds. One alternative that the City might consider is the issuance of a series
of BANs to finance the acquisition and future project costs, and taking the BAN issues out with
a bond issue at the end of the construction period. The advantage to this alternative is that all
costs associated with the acquisition and projects would be known at the time of the permanent
--' y 1- V�-sJIJb'JJVJJ4 rLjbLIC FI1y hIGhI1'
i
financing, so the bond issue would reflect actual costs. The interest rate risk involved in issuing
these short term securities is the unpredictability of the long term interest rate climate after the
construction period: The city would risk the opportunity to lock in the historically low interest
rates of the current market by delaying the permanent issue until the permanent financing is
completed.
0
16011
In
`J .. 11..�J �J1JuJJU.iut rLbLIC kIN
LVJU1Y
V. RECOMMENDED REVISIONS TO SALE AGREEMENT
PFM reviewed the Agreement of Sale and Purchase of Utility System and the associated
attachments for the appropriateness of the sale arrangements. Based upon PFM's interpretation
of the documents, it is our recommendation that the following changes be made in favor of the
City:
1. The City should not guarantee capacity to the Developments.
2. Unbilled water services should be due upon receipt, not on the closing day. This should
further be reduced to reflect the City`s costs associated with collecting the unbilled amounts.
3. LHU has received Contributions -In -Aid -Of -Construction form 58 units in the Arrowhead
sub -division. It is PFM's understanding that no additional services or work has been performed
by LHU for these units, and as such the amount of CIAC paid should be subtracted from the
purchase price.
/ G 4. Under the proposed agreement, the City will not be allowed to charge connection fees to
those parties which have entered into "Utility Agreements" with LHU. These include the Lake
Equity Associates, Greater Construction Corporation, and Donald Gruber.
5. Article V, of the Proposed Sale and Purchase Agreement should be clarified. One
interpretation of Article V, Paragraph 2 could read that the City would not be allowed to charge
any connection fees or other fees to Greater Construction. Paragraph 3 of the same Article then
states that "the City may charge water connection fees in accordance to the City's standard
practice." This statement seems to contradict each of the Utility Agreements which state that
LHU may charge the Developer the agreed upon CIAC amount but may not charge any
additional connection fees.
Since this Article may be read as contradicting itself or as being unclear, the City should
request that it be further clarified.
In
�. PUBLIC FIN NIGHT
10 U1a
VL CONCLUSIONS AND RECOMMlENDATIONS
The analysis of the LHU System has been performed by examining the accounting and
financial statements of the LHU System.
Vwa vial Value
LHU's customer base has been steadily increasing over the past duce (3) years, with
revenues and expenses increasing commensurate with the customer growth.
Historically, net revenues and operating margins (exclusive of depreciation) have been
positive.
Of the five methods commonly used to determine the "value" of utility systems, PFM
performed the "Debt Capacity" and "Going Concern" analyses.
1. Debt Capacity: Actual debt capacity, based upon existing revenues of LHU, for the
current year is estimated to be $ . As stated above, this is the net amount of debt which
may be supported by the LHU System with the System's current revenues. This does not allow
for growth in LHU's customer base nor does it allow for intangibles such as those associated
with additional growth beyond LHU`s current service area.
Z. Going Concern: The going concern valuation method considers the present value of a
utility's future net revenues. To accomplish this, PFM forecasted net revenues of LHU based
upon four assumptions: (i) no growth in customer base, (ii) minimal growth in customer base,
(W) average growth in customer base, and Civ) rapid expansion in customer base. The
projected revenues were then discounted at the rate of 8.00% to reach the values stated below:
Intangible Vallle
In. addition to considering the tangible value of the LHU assets and projected revenues, a
dechaion to acquire the System must be based on other intangible benefits such as those listed
below:
- Ability to manage and provide orderly utility service to the City's annexed areas.
10
• l•—--..., i�.Ji �v1VVJ.�1ivv-a 1�UL1�. 1'll� d11a1111
s�
1 �
WJVli I
- Enhance the ability to manage and/or promote growth in this portion of the City's service
area.
- Ability to enhance City revenues.
- Econorrues associated with purchasing the LHU System in conjunction with water system
expansions planned for the City's service area in the futnze.
- Value associated with the purchase of "proven" non -contaminant water wells.
Utility System Evaluation
Springstead has evaluated LHU and has stated in a memorandum dated February 6, 1995 that
"The wells and systems check out to be in good standing with FDEP with no outstanding issues
or violations.
A further inspection and inventory of LHU's assets and any n=ssary system enhancements
or corrections should be accomplished prior to purchasing the utility.
-12-
�PW�A
PU13IJC P[NANCIAL. MANAME f', INC.
PinancLA and sane Advisor,.
59W Flntaprise Pat:kway
Fort Mycm FL 53905
613-69�r7117 (F x) &Ir693-ti334
January 27, 1995
MEMORANDUM
To: Joe Van Zile
City of Clermont
From: Jerry L. W�`?,�''
Public Fla" Management, Enc.
Re_ Water Systern Rates
I have recently discussed the City's options regarding the Water Utility Rates for
the proposed Utility System Acquisition with the City Attorney, Mr. Leonard Baird. It
was Mr. Baird's finding that the statutes as written do not specifically address the City's
current situation. W. Baird stated that it is\ his opinion that the existiug laws are
predicated on the assumption that a City's Utility System would be comprised 'of one,
integrated system, not two systems independent of each other. Batted on the assumption
of one integrated system, it was the intent of the current statutes to allow for the
expansion of this system and that in order to recover costs, this expansion may be paid for
by levying rates in excess of the rates charged to customers within the City limits.
However, as we have previously discussed, the rates charged to customers outside the
City limits for this integrated system may not exceed 125% of the City residents rates.
Since the situation of two independent systems is not specifically addressed, Mr.
Baird has taken the opinion that the City may continue to charge the existing rates to the
customers of the utility system which the City is considering acquiring. Mr. Baird also
relayed the point that the current rates being charged to the customers of the private utility
system have been approved by the Public Service Commission. This approval would tend
to lend credibility to the point that the rates charged are fag in light of the utility sysmix's
costs and customer base.
In order to receive "comfort" that the rates the City anticipates charging for the
acquisition are legal, the City could receive an Attorney General's opinion, or file a
• Declatory Action in Circuit Court. I& Baird believes that it is in the City's best interest
not to seek either of these actions at the present time.
.'+danGi Austin Boston Deaver FortMyetS Harrisbtae Houston Mcn7pW MlnuegoLs New Yodc NctivportBrcch Otiando Philadelphia PartLlnd S3nFtandSu
• i mOl7i 45.doo
An Atti late of Marine Midl.na Bank
In light of the above findings, in order to value the proposed acquisition, PFM
should analyze` the utility system under both the current rate Structure and the rate
structure as charged,to City customers plus a 25% sur-charge. This analysis wl provide
the City with an "expected case scenario" value as well as a "worst case scenario" value.
I hope this information is helpful to you_ Please do not hesitate to contact me if I
may be of further assistance_
cc_
Mr. Leonard Baird, Jr.
Mr. Chauncy Lever
PFM
l UBUC 1'1NA CIALMC71.VC1UEY1JCiN1, INC.
Frnanaiat and knms=w= Advisors
59M Frl=ptise Fadcway
Fort Myers. FL 33905
81.-�-6934117 {Fad 813-693-6
February 16, 1995
MEMORANDUM
To: Hampton Conley
Lake Hills Utilities, Inc.
From: Jerry L. Wri �asement,
Public . Inc,
Re: Revenues and Expen4itures for Lake Hills Utilities, Inc.
I have reviewed. the Public Service Commission Reports of the Labe Hills Utilities,
Inc. (LHU) and am in need of additional information. Please provide a detailed listing of
the Contractual Services charges for the years 1992 and 1993. Also, the statement of
Revenues and Expenditures for 1994 lists no expenditures for this category, is this correct
or are all expenditures incurred in the last two months of the year? Additionally, provide a
detailed breakout of expenditures for the categories of Rents, Insurance and Miscellaneous
Expenses.
If available, my offict would also re que-.t that the revenues and expenses for the
last two months of 1994 (and any subsequent time period) be made available. Unaudited
or preliminary information would be of considerable assistance even if the formal
statements have yet to be prepared. Once in receipt of this information, PFM will be able
to complete our analysis of LHU's historical Revenues and Expenditures.
As I mentioned in our previous phone call, in order to properly forecast the
customer base for LHU my office will need to review the current customer base as well as
the proposed additions to the subdivisions and the historical growth that has occurred
This information may be delivered to my office via facsimile at 813/693-6384.
I appreciate your prompt attention to this matter and look forward to completing
my Fnai s analysis of the Proposed Sale Agreement which will be presented to the City of
Clermont on Thursday, February 23rd.
cc: Mr. Joe Van 211e
City of Clermont
:manta Ausda Bosina Denver FortMyers Harrisburg Howtm 6temphis Minneapolis Newyork Newport uouh Orlando 11tttliaddPhia Pordaud Sad Frandseo
An Afflllete of Marine Midland Bank ziMM95.da:
904?8??221 SPRINGSTEAD ENG INC 562 P01 FEB 07 '95 1?:1?
FAX MEMO
TO: jnn� w(�I�Nr
,
FROM : �� - vAw 2' t -
DATE:
# OF PAGES 2 _'
Springstead
Enaineering,inc
MEMORANDUM
DATE: February 6, 1995
TO: Wayne Saunders
XC: Preston Davis
FROM: John W. Springstead, P.E.
RE: Lake Hills Utilities, Inc. (L I)
Greater Hills
Greater Pines
We have completed our preliminary investigation of the wells, ground storage and
service pumps along with the system records at the State of Florida, Department
of Environmental Protection central office.
Also we have done some preliminary testing of Hydrogen Sulfide (HAS) from Well
1 & 2.
Results from the test are attached:
We are pleased to report the following:
A. Wells & Pumps
Well One (South)
253'-16"0 casing
561' -10°gyp casing
1315'- Total Depth
Vert -turbine
1400 GPM
Well Two (North)
105' -30" 0 casing
265' -24"0 casing
828' -18"0 casing
1320'- Total Depth
Vert -turbine
1800 GPM
B. ERU's (based on well capacity)
Max hr flow = 1.1 GPM/ERU
3200 GPM TOTAL FLOW
- 500 GPM FIRE PLOW
2 ? 0 0 GPM NET FLOW
27000PM = 2454 ERU'S
1 . 1 GPM ERU
February 6. 1995
Mr, Wayne Saunders
Page 2
C. ERU's (Contact Time (storage))
Average Daily Flow 0.55 GPM/ERU
2(50,000) + 112 hydro '(5000) = 105.000 gal
Fire is not a factor
105, 000 gal = 3500 GPA?
30min detention
D. ERU's (Service Pump Capacity)
Rate = 3 pumps @ 750 GPM = 2,250 GPM
Fire Flow - 500 GPM
1.750 GPM
3500GPM = 6363ERU/S
0. 55 GPA1 ER U
ERU'S = 1750 GPM = 1 59 0 ERU-S
1. 1 GPM ERU
Considering the best well out of service, well #1 would remain on line for fire
flow for residential use, the following would then be applicable:
Well Flow 1400 GPD
- 500 Fire Flow
900 GPM
9 00 GPM _ 818 ERu AV 1L—AB
1. 1 CPAV R U
This number of hookups would control if the City were to purchase and use the
Lake Hills Utilities System.
The following services are existing and anticipated:
PROJECT
EXISTING
PROPOSED
Greater Hills
385
640
Greater Pines
58
500
Lake Equity
0
150
Guber Property
0
402
Total
443
1692
At present this would leave 818-443 or 375 ERU's for future hook-ups.'
It is reported by LHUI that anticipated hook-ups from the current use rate from
the Hills and Pines. (11 or 12 per month) yield a possible consumption of the
available ERU's in 3 years.
The wells and systems check out to be in good standing with FDEP with no
outstanding issues or violations.
JWS/jal
(2/6195 . LAKE HILLS)
PFM
PLMLIC FNNANCIALMANAG]EMENT, INC.
fi =Lil and lave st=t Advixor%
590o Enterprise t`arkway
Farr Myers, FL 7,3905
813-693-7117 (Fax) 81S-b4r6384
February 16, 1995
Mr. Joseph E_ Van Zile
Finance Director
City of Clermont
P.O. Sox 120219
Clermont, Florida 34712-0219
Dear Mr. Van Zile:
Enclosed is a schedule depicting the Historical Revenues and Expenditures for the Lake
Hills Utilities, Inc. These figures were taken from the Public Service Commission reports as
filed for the last two calendar years and a statement of Revenues and Expenditures as provided
by the Lake Rills Utilities, Inc. for the time period January, 1994 through October, 1994.
In order to complete an analysis of the Proposed Acquisition, it is necessary for the City to
coavcrt then Revenues and Expenditures incurred by the Utility to reflect any changes which the
City might incur. In order to facilitate this conversion, I have included an analysis which was
performed for a recent acquisition_ Please include any charges for Administrative Expenses and
additional Employee Costs as appropriate.
I will also begin worldng on a projected Revenues and Expenditures schedule. However, it
should be noted that any projections matte with respect to the Utility System vnll be performed
based on a set of assumptions which might not be indicative of actual results. In order to make
the most appropriate assumptions, PFM will work with the City, Engineer, and Utility to better
understand the growth which has occurred in the past as well as that which is anticipated to
occur in the following, years_
Revisions to the Conversion Table will be distributed as necessary. If you have any
questions or comments regarding this schedule, please do not hesitate to contact me at 813/693-
7117.
Sincerely,
/ Mffy'L. Wright
Sr_ Man4ng Consultant .
Atlanta. Atrstltt Bo=n Naver l7mmyers Harusbarg, Hoastnn Memphis Mwncapols New York Newpor[Bead1 odaa& Ph&ddph;a Portland San Fran
An Aft -Mate of Marine Midland Bank
LAKE N7US uTaxn ES fad,,,, fy� 86
- HISTORICAL FTNANCJAL. AND CONVERSION TO CITY OWNERSHIP
Late
1993
1993
LW Adj_ 10 Moiahs
City
Total Wa=Undcr
No_
Desaipuon Atnzal
Actual
Ending 10i3104
Adrt1� _
0ty omiushio
Oper 4na Revenues
Water
0
1
2
Residetnial
Coaw=cr4l
86,955
1.298
991129
1,293
100,537
1„ 96 �(
D S� 71"
�d7� � y�
3
lnigation
1,567
4
Guaranw*d Rev
6,083
7,1M
9r'4(i
5
Initial Com rcriour-c=
1,0135
4
Recounwion FCC$
1,710
7
Otherr (IRR)
$27
913
0
8
Kisc. Service Charges
2,535
3.. - G
195
9
boor= Iowme
1564
1.096
0
10
SutrToW Operaratg Revenues
99,..6'2
113,391
115.986
0
Spurn Grvwth
TOTAL Operamag- Revennc
113.391
115,986
0
0P-U=9 Fxpasrs
_
1
Salaries and Wages - Employees
0
0
0
2
Jalaries and Wages - Officers, Dirrerom
and Majority Stocl:hoidcrs
0
0
0
3
Employer Pcnsiou. and Bwefus
0
0
A
4
PlayrollTmes
0
0
0
5
Purchawl wsler
0
0
0
6
PmrhmedPower
9,729
8,146
7.843
7,843
7
Fuel for Power Purchased.
287
0
0
8
chcmrGQs
563
2Z�
IN
lso
9
Marerials and Supplies
0
3,119
3,547
31547
Contr.tic- A Satviaes
22,919
25 7184
10
- Fn&ooling
2S1
2111
11
- Accouadag
0
12
-L-9-1
0
13
-MaesgcmeoLFOM
0
14
-LaboratoryFccs
4.908
4,908
15
- Other
150
150
16
CommmtiGuions
0
0
0
17
cornmimicmioasEquipromL
0
0
20
267
18
Rent;
4,024
5,003
3,5222
3.522
19
TtaftsponaflouExpmsc
2 03
3,477
2.930
Z6973
3,870
20
. vehicle
0
21
- General Liability
0
22
- Worirm es comprpsstioa
0
23
- Other
0
34
Advcx isiugLxpq=
0
0
0
25
Postage & Freight
0
0
0
26
11nifotnis
0
0
0
27
Ohre¢ SuMlivn & Stationary
0
0
0
25
Subsctipdons
0
0
0
29
Truk & Business Memberships
0
0
0
30
Regulatory Comm bsioo ExpCuws
953
953
31
fiad.DcbtExpettsc
0
0
0
32
Miscaunavous Agxwc
7,898
6,185
UN
2,2,09
33
Coutix+gencyr
0
34
Adna1Dmuari t; Arloczgioa
0
35
Sob -Total Utility Exprese
51.V4
55.762
25.827
0
25.827
36
Utility Operating Rmom
47,988
57.61-9
90.159
0
(25,827)
)Please See Attacbed Page for Fodaotes
/07 /N - �v.91/`A ��� lil G Z 7
6�'tG�
u2; 16; 95 11: 43 a6136936364
flUBLIG F'11N
al�a�11'T
�, Uuo
APPENDLX
A
- HISTORICAL FINANCIAL AND CONVERSION TO COUNTY OWNERSHIP
,
Lac
1990
1991
1992
GD12Adj.l1Mm0=
Caaaty Z-ota1wa1cfiscw&
NO,
Aral
Acftm1
At=1
BaTn9/3083
Ad;� i iadaCacmty
Ownmjxg
1
wwx
457$57
49ZO93
481,74
742.WO
06916) (1)
705224
2
scwcr
828.858
974,264
861300
1375,000
a45.379) (1)
1,129'al
3
NCsc-Rcvama
38,436
0 (7)
33a36
-
li.ccIt+�aag
0
0 (3)
0
5
Iacccca Iu<x*ma
75.000
(67500) (4)
7,500
6
SatrTatdOp=dagRcv=D"
1;506.$57
1343,094
2,T0,436
049,655)
1.M0,7E1
7
syssmvGtow�h
TOTAI.Op-.dagRcvcnaa
I..86�]
2366,357
I-u3.094
ZZO.436
(349,6S5)
1A0.781
�-G�g�
9
Sa1m6 and Wagcz -Employ=
304,160
376.420
321,788
229=
113,794 p)
343,056
9
S +i -dWasac-OM.G;z.Daxa
and 1&icaityl swdLhold=
0
0
0
0
0
0
t0
t mploy�PrsaiaasaaaS s
49.006
49.497
38.6a2
371883
109,889 (6)
147,772
11
paymnTa=
0
0
0
26.192
(26,192) (6)
0
12
PurduscdWatcdScwaBcTrmunt=c
0
0
0
0
0
0
- -
13
5ludgc Rmwal Eapau
' ` " 0
0
0
0
25, vo (1)
25.000
14
parkau-dPose
113$67
122658
101209
107.771
0 (s)
102,771
15
Fud for Paw¢1=dmted
0
0
0
0
2500
2500
i6
Chemicals
-950
6259
959
2084
416 (9)
2,5W
17
NL rials =d Sopplii .
156386
162,$71
2$9396
62.051
(24.000) (10)
-41.051
IS
11zuum-aca-I.ahor
0
0
0
6S.8%
(45,7941 (11)
23,104
19
M.,rtcTM.....•- E.P.
0
0
0
Iw000
(59.946) (12)
62,054
- _
Coasa gal Srnicca '
20
-Fagioacg
a
0
0
0
12.500 (13)
12500
i.
21
3574
0
0
0
10.000 (14)
10.000
r.
-Lceal
6„IM6
ti05
186
0
7.1Z (I5)
7.125
73
-MmagrmatFooc
60,155
79.467
95,000
39:906
(39006) (16)
0
24
-HillmgSuvixc
0
0
0
0
24.000 (17)
24.000
25
OLhQ
I,2`5
0
152
1950
0 (I8)
1950
26
c4==ic3Aau
0
0
0
0
0 (19)
0
27
ca=aaDiex6*UEgd==t
0
0
0
0
0 (70)
0
C
29
R=LdEaUdwsRmaPmccy
0
0
0
0
1(.605 (21)
10.60$
29
Rrnral Ea¢igmc=
0
0
0
0
21000 (22)
2.000
30
T=as{wFsxssc
Ins
25,759
24s4sG
27,OW
26,565
(5.595) (M)
20,970
31
-Vchidc
0
0
0
0
L548 (24)
1-s48
32
-C�a1L;aialicy
0
0
0
Q
0 (25)
0
?
33
-Wodrm�n'sr =r -�*��
60.153
34,2"
3798'-
38.779
(36,779) (IA
0
�-
34
tea
3E,064
41.647
11,037
19423
0 CV)
19,423
35
Advcsidag Eq-c
0
0
0
0
I,000 (28)
1,000
t
36
Po=gc dt. Fragbr
0
0
0
0
0 (29)
0
37
Ugfg=z
0
0
0
0
2,000 (30)
7-000
`
38
OfficcSup plimastatiaaary'
0
0
0
0
1140 (31)
11500
39
satmcripciaz
0
0
0
0
700 (32)
700
40
Tade&Ba
0
0
0
0
400 03)
400
PwzAta y c . 1xpa="
41
•Amardzaama[RucC.*&Brpet a
41,016
41,016
73U
0
0 (34)
0
s '
42
- abA=
'O
467
0
0
0 (35)
0
43
BadDcbcEcpaue
89'..3"
17.035
17.659
�Z442
MOM) (36)
14,442
44
TTuzI1maalSExpcasa
2341
3300
767
9.125_ (5900) (37)
3=
45
Sub -TOW Utlllsyl;T=.
469y95
901.946
903,091
1.154.331
(271.135)
883.196
E
46
UtWty0i.=tiaBlac =
416,M0
404,411
1135.003
1.076,105
(78.S-)0)
997$15
1.- Please see AUched Page f9rFoouwus
L
ri
i
_
(1)
(2)
L
fr-
L.
E
I
e
R STORYCAL FINANCIAL AND CONVERSION
TO COUNTY OWNERSIUP
Adjusted to reflect approved rates. Assumes the cng ns'er's will verify or provide
adjustments to the revcnuc.
The following was provided by GDU as a breakdown of the miscellaneous revenue:
Fire Service 22,605
(agreements with 17 commercial property owners for fire protection both
6 inch and 8 inch meters)
Ferry Tease Agreement 6,690
(agriculture lease with Juddy Perry for 120 acres at $15.00 per acre)
Tura onloff fees and
Developer Ageements 9.141
TOTAL
35,436
(3) Provided in the event t?�, County institutes a rate indexing policy.
(4) Estimated Average Sinking Fund Balance 212,890
EstimatedEarnin-Rate 3-53% (1)
Annual Sizing Fund Earnings 7,515
TOTAL EARNINGS
$39,326
(1) State Board. of Administration (SBA) rate as of Octobcr 4, 1993.
(5) Reclassified $45,794 from "Maintenance - Labor" to "Salaries_" PBS&J provided an
estimate of $50,000 per year for a utility director position- These assumed the position
would require a registered professional engineer. Additionally an accounting(customer
service position was added with an estimated salary of $18,000-
GDU provided the following as the positions included in the Salaries for the Silver
Springs Shores Utility:
Community SuperinteDdent
$34,295
Coordinator I
26,395
Customer- Service Rep M
19,115
Customer Service Rep 1
22,381
Shift Operator B
24,170
Field Service Rep III
20,072
Line Maintenance Tech 1
26,395
Maintenance Mechanic II
24,981
Shift Operator C
24,170
Shift Operator C
23,650
Chief Operator B
29,432
Sub -Total $275,056
Q]
P
-2-
0�4/16/-95
11:44 V8136936384 PUBLIC FIN MGMT zoos
(6)
Director 501
Ac countant(Customer Service 18,40
TOTAL $343,056
The calculation factors provided by the Councy's Budget Director resulted in the
following calculation of benefits:
Group Health
13 Employees
X
2,841=
36,933.00
Social Security
$343,056
X
7.65% =
26,24338
Retirement
293,056 (Regular Emp_)
X
17_66% =
51,753.69
50,000 (Senior Mgmt)
X
23.63% =
11,815-00
Worke-es Gimp_
170,186 (Clerical/Office)
X
0.43% =
731.80
172,870 (Shift Operator)
X
11.74% =
20,294.94
TOTAL
$147,772.21
(7) The Utility disposes of sludge at the cost of $17,976 for 1992 and $7,560 frorn January
to May 1993. The average for the past five years is $19,257 (Provided by A General
Development Utility representative). GDU provided a renewed contract for hauling
and disposal at the same price as 1992 therefore a budget of $25,000 was provided.
(8) Purchased power has fluctuated over the past few years, however in November 1989
GDU converted to GST 150 rate (Timer of use)_ See attached sebedule's dated 11/2/89
and 3/22190. By comparing the June and July 1989 costs to the same two months in
1993 GDU realized a savings of $1,030 per month for the power at the sprayfield.
Provided by a General Development Utility representative_
Fuel for purchased power (diesel for emergency generators)_ $2,453.43 in 1991;
$2,444.61 in 1992; and $2,429.94 in 1993. Provided by a General Development Utility
representative.
(9) Increased slightly for inflation.
(10) The cost of material and supplies has been reduced by (i) the amount for rental
equipment ($2,000) which has been accounted for in the rental equipment line item and
(ii) the amount for sludge disposal ($19,000) which has been accounted from the the
Sludge Removal Expense line item_ PBS&J reviewed and stated the level appears
L_ reasonable.
} (11) Reclassified $45,794 from " Mairitenance - Labor" to "Salaries:'
-- (12) Reduced to 5.00910 of prior year's gross revenue as an anticipated requirement for
renewal and replacmenet type expenses required by the system_ Provided by PBS&J.
(13) The- County agreed through the negotiating proceeds to reduce this line item to $12,500
assuming the Utility Director will be a certified P.E.
L(14) Thomas KLinker, County Finance Director provided estimate.
` (15) Bsdi=6 based on a similar si= system.
(16) The Management Fees related to the services provided through GDU's office in Miami.
The Management fee included (i) management salaries and Benefits, (ii) stationery and
i_
supplies; (iii) telephone equipment, (iv) postage and freight, (v) travel and
entertainment, (vi) subscriptions, (vi) trade and business memberships, (vii) leased
vehicles,.(viii) outside contractual services, (ix) bank fees, (x) accounting and collection
expense, (xi) mist_ expenses_ These expenses have been estimated and provided in the
appropriate line items.
(17) The County will likely need the- services of a customer billing service to send out the
water and sewer bills. From investigations into similar services, the budget for this
service would be approximately $0.50 per mouth per account. Assuming there are -
about 4,000 accounts it would result in a monthly billing cost of $2,000, or about
$24,000 per year_ Provided by PBS&J_
(18) .Assumes no change required.
(19) The communication monthly bills have been paid out of the materials and supplies.
Once a figure is established it should be reclassified. Provided by A General
Development Utility representative_
(20) The communications equipment is owned by GDU and would be. a pan of the
acquisition therefore no rental is required. Provided by a General Development Utility
representative.
(21) Rental on the existing suture will be $5 per square foot per year with 2,121 square
feet for a total of $10,605 per year. GDU will provide the County a lease fixing this
cost.
(22)
Rental equipment was $1,61$_03 for 1992 and $657.52 from January through August
1993. This was for rental of boom truck required to pull pumps from transfer station
that are too large to handle with the booms truck we use for the lift stations. Also for
rental of barricade's used in line repairs. This charge was previously included in
. _
Materials & Supplies and that line item will be reduced accordingly. Provided by a
General Development Utility representative_
(23)
Assumes the continued trend in the cost of maintaining a rental fleet with the
elimination of two lease payments because the vehicles are fully paid. An average
trend was, determined From the historical data and the County's operating was adjusted
accordingly_
(24)
The County charges $259 per vebicle. There are six vehicles resulting in $1,548 total.
(25)
Liability is paid from "Other" catagoiy_
(26)
The County categorizes this with the employee benefits.
(27)
GT3U's cost for property insurance and liability. The County will provide a figure for
insuring the facility under the County's self insurance program which is anticipated to
be less.
(28)
Estimated,based on a similar size system.
t� (29)
Assumes that the $24,000 for contract billing will provide for postage for all the billing_
-4-
r
(30) Uniforms average $2,000.00 per year. This charge was previously included in
Miscellaneous Expenses and that line item will be reduced accordingly. Provided by a
General Development Utility representative_
(31) Offices Supplies & Stationary for 1992 = $1,36723 for door tags, customer
agreements, letterhead, envelopes, etc. . This charge was previously included in
Miscellaneous Expenses and that line item will be reduced accordingly. Provided by a
General Development Utility representative.
(32) Estimated based on a similar size system
(33) Operator Cer ificadon renewals for waxer and sewer are $400 per year. This charge was
previously included in Miscellaneous Expenses and that line item will be reduced
accordingly. Provided by A General Development Utility representative.
(34) Assumes no Regulatory Commission. Expenses under County ownership.
(35) Assumes no Regulatory Commission Expenses under County ownership.
(36) Assumes the continued trend for bad debt expenses. Bad Debt Expense increased in
1991 due to the horde owners refusal to pay base facility charges that were being paid
before General Development Corporation filed banlzuptcy_ Also in 1992 there was a
commercial account that -filed banknrptey with a balance of $4,860 which was written
off, in addition to the eondaued problem of collecting base facility charges from home
owners. In 1993 the interim rate increase went into effect in February with the bills that
are written off being higher.
(37) The cost of miscellaneous expenses has been reduced by the amount for (i) fuel for
purchase power ($2,000), (ii) uniforms �$2,000), Cui) office supplies & stationary
($1,500),. (iv) trade & business memberships for operation certifications renewals
t - ($400) which has been accounted for in other line items. Provided by a General
Development Utility representative.
r
E
NO
11
-5-
Vl�
�,vLlt rl.s AGki 10002/009
PFM
PLTUC FYNANOAL MAMGEMEf, INC.
Financial and U Ncs n nr Advisors
$900 Enrerpdse Parkway
ForGMyeM FL:-.3905
813-693-7117 (Fax) 813-695-W84
February 17, 1995
10TOU L - -
To: John Spnnostead
Springstead Engineering
From: Jerry L. Wright
Public Financial Management, Inc.
Re: Lake dills Utilities-Atquisition
I look forward to receiving the information you have compiled on the Lake Idill.s
Utilities, Inc. (LHU) acquisition. As I stated in`our phone conversation, there are several
methodologies currently utilized in the valuation of utilities such as LHU. It is my
understanding that you have reviewed the assets and have been able to determine a book
value as well as a depreciated value. These calculations should be used in conjunction
with the valuation methods I intend to utilize (Going Concern and Debt Capacity) to
determine the true value of LHU to the City of Clermont.
In order to fulfill my scope of services to the City and project the future revenues
and expenses of LHU, I will need further input from your firm in several areas. These
areas, as we discussed this afternoon, are in the proper determination of the anticipated
costs the City will face after acquiring LHU and the proper forecast of revenues for LHU
as the system's customers increase in the coming years. In conjunction with the last area,
PFM will need to factor in any anticipated costs to the system due to expansion as well as
any corrections that need to be made. to LHU to bring the system up to City standards.
The corrections that need to be made to the system should be subtracted from the
purchase price of LHU.
Finally, I have enclosed several "condensed versions" of the Sale Agreement,
Utilities Agreements, and list of assets for LHU. I hope you find these helpful in your
continued work with the City. I will forward a Draft version of PFM's report on the
Purchase Price of the Utilities as it becomes available. We will need to integrate some of
your concerns regarding the system as well as any statements necessary regarding the
permitting status of the Utilities and any perceived difficulties which might arise dining the
acquisition.
Adanra Austin Boston Oenver Fort NV= HxTL4=g Rnusran Memphis Minneapolis New York Newport Brach Orlando Philadelphia Portland San Francisco
An AffiYate of Marine Midland Bank
., -AiI- r I A 0.&1 40031'009
I appreciate your prompt attention to this matter and look forward to completing
my Fum's analysis of the Proposed Sale Agreement which will be presented to the City of
Clermont on Thursday, February 23rd- If I or my Finn may be of any assistance to you in
this or other related matters, please do not hesitate to contact us at 8 13/693-7 117.
Enclosures
cc: Mr. Joe Van Zile
City of Clermont
W-jVV -A V U 0
Utiity Agreement
Developed Lots
Undeveloped Lots
CITY OF CLERMONT. FLORIDA
LAKE HILL UTILITIES, INC,
PROPOSED SALE AGREEMENT
City will provide guaranteed capacity as described in the Utility
Agreement
Lake Equity Associates, Inc. has paid for 58 single family
connections for Arrowhead Subdivision, City will provide 58
connections for free.
City will provide Guaranteed Capacity and water service to Greater
HMs (GI-1) and Greater Fines (OP) Developed Lots upon request by
Greater.. „, ,
City recognizes that Greater has paid all Water Connection Fees
and other charges due with respect to GH and GP Developed
Lots.
City will not charge any Water Connection Fees to Greater with
respect to providing Guaranteed Capacity and water service to
GH and GP Developed Lots.
City will provide Guaranteed Capacity and water service to GH
and GP Undeveloped Lots upon request by Greater.
City will charge Water Connection Fees for Undeveloped Lots in
accordance with C ity's standard practice and same amounts as
charged City's other water customers_
Guaranteed Capacity City will increase LHU's Capacity in order to provide Guaranteed
Capacity and water service to GH and GP Developed Lots and
Commercial Property, and meet the obligations of the Utility
Agreement.
City will provide Guaranteed Capacity to the above customers
when they request it.
02/17/95 16' 21 %28136936384 PUBLIC FIN HOT 0005/009
(CITY OF CLERMONT
I airy HILLS UTIIIITWS TNC ACQUISITION
Exclusive Service
LISHEUMOTORMPOAM
All improvements constructed on the Property shall be served
exclusively by Utilities water facilities.
Utilities agrees to make water. service available to the Development
at the rates and conditions set forth:
Agreement is provided for residential services only, commercial
service will be provided under a separate agreement
Utilities.is„xesponsible for furnishing fire floors to the Property
up to five hundred GPM
Water service to be provided six months after written request of
Developer.
Developer will contribute $864.00 to utilities as Construction
Contribution (CC) for each single or multi -family dwelling
constructed on the property.
CC is cornprised of $500.00 in CIAC and a CIAO Tax Impact of
$324.00 as approved by the Florida PSC.
CC are to be paid to Utilities in lump sum increments, these are
to be paid at the time Developer first requests service for additional
lots.
Developer is not entitled to any return of CC. (unless Utilities is
unable to render service)
CC shall be in lieu of any other tap -in or connection fees, bat not
in lieu of:
1) The cost of off -site construction (as further detailed)
2) The CIAC Tax Impact on any contributed property
3) Rates and guaranteed revenue charges
4) Meter installation fees
rUbLiC r'11N AGAI t0UUu/UU8
Off Site Improvements
Off -site Improvements are improvements which are
determined by Utilities as necessary to transport water
from Utilities Plant to the property and shall include all
lutes and mains.
Developer shall pay (a) the incremental cost associated with
the off -site construction to pay for capacity needed by the
property; and (b) cost of constructing off -site improvements
necessary to serve the property.
Additional off -site improvements will be constructed by
Utilities at Developer's expense.
Off --site improvements are to be constructed in accordance with
Utilities plans and specifications.
On -Site Improvements
Inspection
As Property is developed, Developer shall construct and
install, at its expense, all necessary on -site water facilities. This
includes all facilities needed to connect to the Utilities existing lines.
Utilities must approve of the plans and specifications for On -Site
Improvements and has the right to conduct inspections thereof
Utilities may inspect, without notice, on -site work. Inspections are
at the Utilities expense.
Use -of On -Site Facilities
When connecting on -site facilities of the Developer to the
Utilities water systems, Developer shall convey to Utilities, at no
cost, such on -site facilities as Utilities shall require.
If on -site facilities connected to Utilities water system are not
conveyed upon request, Utilities may terminate the Agreement.
eUbL1C FiN MGMT 2007/009
CIAC Tax Tmpact of fmprovements
At the time Developer shall, pay Utilities for the cost of any
improvements, Developer shall pay to Utilities, in cash, the
CtAC Tax Impact approved by the Florida PSC.
Utilities shall not be obligated to construct off -site facilities until all
CIAC Tax Impact charges are paid.
Rases and Guaranteed Revenue Charges
Water Meters
Flats
Term
Rates charges to Developer for water service, and guaranteed
revenue charges, shall be those charges made by Utilities to its
other customers.
Guarmtgco.revenue charges ($8.64 per lot per month) are payments
to the Utilities by the Developer for capacity reserved but not being
used as an active customer.
Developer begins paying guaranteed revenue charges at the time
Developer request Utilities, to provide water service to the
Property_
Utilities shall install a water meter(s) as Utilities deems necessary to
serve the Development with the costs to be paid by Developer.
All plats shall provide for such dedicated Utility easements as are
necessary to serve the Property.
Agreement term is for 30 years, from commencement. Options to
terminate thereafter upon one year's notice.
u�/ I i" 95 1 U : G;t
IW136936384
PUBLIC
LAKE K LLS WATER TREA
SERVES GREATER HILLS AND GREATER PINES SUBDIVISIONS
Raw Water System
Two wells pump raw water to the Treatment Plant
Pump No. 1
Built in 1989
Situated on plant site
10' inch diameter well
Depth of 1,315 feet
1,400 GPM pump
12' inch connector pipe
Eachije,
Pump No-2
Built in 1990
1,000 feet North of Plant
18' inch diameter well
Depth of 1,320 feet
1,800 GPM pump
14' inch connector pipe
The site has two buildings. The site is bordered by a perimeter security fence
and illuminated by external lighting.
Concrete block building
Completed in 1994
Approx_ 1,800 square feet
Wood trusses
Asphalt shingle roof
Houses maintenance area
Office
Laboratory
Chlorination room
High service pumps
Pump
Well.
Chlorination controls
Auxiliary power generator
Generator day tank
Chlorination
Restroom facility
Serviced by a septic system
Elevated rain field on site
Consists of an Ecometrics 50 PPD chlorinator.
'Uo9
.OLil, I iw UG&i' 16009i vva
High Service Pumps
Three pumps
Crane Demrning type Bf 6x4 50 hp
750 GPM pumps
Auxiliary Power
Provides auxiliary power to the building, controls, high service pumps and well
pump number 1.
A single 275 KW Cummins generator
Auto transfer
2,000 gallon extexior above -ground fuel tank
10 gallon day tank inside building
Storage
10,000 gallon steel, hydropneumatic tank
Two (2) 50,000 gallon horizontal above -ground steel storage tanks
Aeration
Cascade type
1,250 GPM capacity
Meterin P-
`l'he plant master meter is a 6" 70-1,000 GPM venturi type.
Distribution
16" main running from Greater Dills Subdivision along the northern and then
southern rights -of -way of S-R. 50 to Hancock Road, then along the eastern
right-of-way of Hancock Road to Greater Pules Subdivision (phase 1)
Also included are lines in Greater E11s, Phases 1, 2, 3, 4, and 5, and Greater
Pines, Phases 1 and 2
.,
"02/21/95 15:44 V8136936384 PUBLIC: FIN AWAT
TM
PUBLIC RMAIVCIALMANMGEMENr INC.
FwancW and Imsmeru Advisors
59W Emelpdse Parkway
FoaMyers. FL 53905
813-693-7117 (Fax) 813-65r$, a84
February 21, 1995
Mr. Joseph E. Van Zile
Finance Director
City of Clermont
P.Q. Box 120219
Clermont, Florida 34712-+0219
Re: Take Hills Utilities, Lic. Acquisition
Dear Mr. Van Zile:.'
Public Financial Management, Inc. ("PFM") shall provide to the City of Clermont services
related to the above subject as outlined below:
Task 1 Review the Following Tnfornnation
• Agreement for Sale and Purchase of Utility System
Utility Agreements
• Public Service Commission Annual Reports
+ Belated Engineering Studies and Reports
Task 2 ' Perform Analysis
• Assist City and Engineer with Revenue and Expenditure Projections
Propose any necessary changes to Proposed Sale Agreement
• Calculate a purchase price determined by the Projected Net Revenues
• Deternune Methods of Financing/Plan of Finance for the Acquisition
Task 3 Report Presentation
• Prepare independent report and submit in Public Meeting to City
For the above scope of services, PFM shall receive hourly rates as outlined below:
Managing Director $175
Sr. Mango, Consultant $160
Consultant $130
Alone: Ausrin &bma Deaver Fort era Etomwa
N(y MelrtphiS Mfnumpolis New York N—poct&ar31 Odsado Philadr]phia POtd7IId Saa Franastc
An Affiliate of Marine Midland Bank
No charge for clerical or administrative hours
Reimbursable Expenses
In addition to the above, PFM will be compensated for necessary, reasonable, and
documented out-of-pocket expenses incurred for out of state travel, meals,
lodging, telephone, mail and other ordinary and any actual extraordinary costs for
graphics, data processing, and computer time which are in=ed by PFM.
PFM would further propose to limit the professional fees charged for the above Scope of
Serviccs to $2,500.
If you have any questions regarding this letter or the engagement, please do not hesitate to
contact me at your earliest convenience.
Sincerely,
ry L. Wright
Sr. Managing Consultant
FS. 1993 MUNICIPAL PUBLiC WORKS
r.5. 1993
t to all classes of ser_
nunicipality, no hear
y has engaged, or
'ieve that any munici-
:t or practice prohib-
1 (5), a civil action for
(ication for a perm._
fining order, or other
person or persons
municipally owned
confines of a single
nterlocal agreement,
ewer utilities beyond
to a municipality in
rule charter if that
tarter an agency reg-
tcept as provided in
sting a municipally
providing water and
as of the municipal•
for and specifically
ty rate regulation as
I charge consumers
just and equitable
srs inside the munic-
i shall be applicable
lg water and sewer
Mth respect to any
y owned water and
of the municipality,
ng water and sewer
s municipal bounda-
municipality adopts
this section, modify-
Istem rate structure
-ssary to bring the
:ompliance with the
eclaring the munici-
m the effective date
iency regulation of
larges; and
:ompliance with the
;onstrued to require
)t themselves from
municipal water or
as for services ren-
lnicipality, to regula-
uch rates, fees, and
lunicipal determine
ursuant to this sec -
allow the prevailing
lition, a reasonable
•301: 5. 1. ch. 92-181,
180.20 Regulations by private companies; rates;
contracts. --Whenever any private company or corpora-
tion organized for the accomplishment of the purposes
of this chapter is granted a privilege or franchise by a
municipality, it may prescribe the terms upon which
owners and occupants of houses, buildings or lots may
obtain the use of the utility constructed and operated by
the said private company or corporation, and the rate
charged for such use, and also the rate and terms upon
which the municipality may use such utility for public
purposes; such rates, however, shall be subject to the
approval of the city council, or other legislative body of
the municipality, by whatever name known; provided,
however, that the municipality may contract with the
said private company or corporation to pay the said com-
pany or corporation a flat or fixed rate for such service
and use of the utility and may pay out of the general rev-
enue or any special revenue such rate as agreed.
t68tory. . t:, M T7118, t9a5: CGL 1936 Supp. 3100(19).
18021 Powers granted deemed adcTrtional. The
authority and powers granted by this chapter to munici-
palities shall be in addition to but not in limitation of any
of the powers heretofore or hereafter granted to munici-
palities now existing or hereafter created.
F+LawY --e 15, WL 77118. 1935. CGL 1936 Supp. jiWpt)).
180.22 Power of eminent domain-
1-2An ; C
tracts for me construction of any of the utilities men-
tioned in this chapter, or any extension or extensions to
any previously constructed utility, which said contracts
shall be in writing, and the contractor shall be required
to give bond, which said bond shall be executed by a
surety company authorized to do business in the state;
provided, however, construction contracts in excess of
$2,000 shall be advertised by the publication of a notice
in a newspaper of general circulation in the county in
which said municipality is located at least once each
week for 2 consecutive weeks, or by posting three
notices in three conspicuous places in said municipality,
one of which shall be on the door of the city hall; and that
at least 10 days shall elapse between the date of the first
publication or posting of such notice and the date of
receiving bids and the execution of such contract docu-
ments.
(2) All contracts for the purchase, lease or renting of
materials or equipment to be used in the accomplish•
ment of any or all of the purposes of this chapter by the
municipality, shall be in writing; provided, however, that
where said contract for the purchase, lease or renting
of such materials or equipment is in excess of S2,000.
notice or advertisement for bids on the same shall be
published in accordance with the provisions of subsec-
tion (1).
ff,stwY. c ia, Ch. 17115. 1935; CGL 19M Supp. 31pG�(2:11: s. 3. c_"L 73-129; s.
12. m 90-279.
NOW—Famef & 2%.&
( ) y munlclpa lty or private company or corpora-
tion authorized to carry into effect any or all of the pur-
18025 Contents of notice of issuance of certifi-
poses defined in this chapter may exercise the power
of eminent domain over railroads, traction and streetcar
cater, —The form of the notice for advertising the pro-
lines, telephone and telegraph lines, all public and ph-
posed issuance of mortgage revenue certificates or
debentures shall contain the amount of the certificates
vate streets and highways, drainage districts, bridge
districts, school districts, and any other public or private
to be sold and the rate of interest thereon; a description
lands or property whatsoever necessary to enable the
in general terms of the utility to be constructed; the time,
place and date where bids for the sale of the same are
accomplishment of the purposes of this chapter_
(2) Any
to be received: and such other pertinent information as
municipality which exercises its power
may be deemed necessary.
under this section outside of its corporate boundaries for
Wcstory,—s.19. ch. 17118, 1995: CGL 1938 &w. 3100(24).
the accomplishment of the purposes of this chapter may
finance such extraterritorial project in any manner in
180.26 Form of certificates. --The certificate of
which it is presently authorized by law to finance a like
indebtedness to be issued under the terms and condi-
project within its corporate boundaries.
tions of this chapter shall contain a description of the
HWtaly —r. 16. ch, 17118. ItW: CGL 1936 Supp 3100(21)1 r- 1, ell. 7a-ly&
utility, the revenue of which is pledged, together with the
18023 Contracts with engineers, attorneys and
terms of payment of the same, as is established by the
ordnances or resolutions of the municipality, in accord -
Others; boards --Any municipality desiring to con-
ante with the conditions heretofore established in this
struct; maintain or operate any of the utilities described
chapter, and may or may not have attached thereto
in this chapter, may contract with engineers and attor-
interest coupons, and shall contain such other and fur-
neys for professional services required for the accom- ther Conditions as shall be determined by the governing
plishment of any or all of the purposes of this chapter,
provided, however, .that such employment is to t
bo of the municipality, in accordance with the terms
d conditions of this chapter,
danced by written agreement setting forth the terms
. �• ch.1711A 1935 G0. ,936 supp.3lt)0(25),
and conditions of the employment; provided further, th
such municipality may also create such other officessarld
80.301 Purchase or sale of water, sewer, or
boards as may be necessary and expedient for carrying
wastewater reuse utility by municipality. —No munici-
out the purposes of this chapter and shall provide suit-
pality may purchase or sell a water, sewer, or waste -
able and fit compensation for the same,
water reuse utility that provides service to the public for
('rr8UWy, r,. 17, ch. 1r118. IWG: CGL i936 supp 3100k=).
compensation, until the governing body of the munici-
pality has held a public hearing on the purchase or sale
180-24 Contacts for construction; bond; publica-
and made a determination that the purchase or sale is
tion of notice; birds.--
in the public interest- in determining if the purchase or
(1) Any municipality desiring the accomplishment of
sale is in the public interest, the municipality shall can.
any or all of the purposes of this chapter may make con-
sider, at a minimum, the following:
1271
15:53 "613b936364
rUbLIC r11V uWIT
ch. 113o MUNICIPAL PUBLIC WORKS F.S-1993
(1) The most recent available income and expense
statement for the utility-
(2) The most recent available balance sheet for the
utility, listing assets and liabilities and clearly showing
the amount of con tributions-in,aid-of-construction and
the accumulated depreciation thereon;
(3) A statement of the existing rate base of the utility
for regulatory purposes;
(4) The physical condition of the utility facilities
being purchased or sold;
(5) The reasonableness of the purchase or sales
price, and terms;
(6) The impacts of the purchase or sale on utility
customers, both positive and negative;
(7) Any additional investment required and the abil-
ity and willingness of the purchaser to make that invest-
ment, whether the purchaser is the municipality or the
entity purchasing the utility from the municipality;
(8) The altematives to the purchase or sale and the
potential impact on utility customers if the purchase or
sale is not made; and
(9) The ability of the purchaser to provide and main.
tain high -quality and cost-effective utility service,
whether the purchaser is the municipality or the entity
purchasing the utility from the municipality.
The municipality shall prepare a statement showing that
the purchase or sale is in the public interest, including
a summary of the purchaser's experience in water,
sewer, or wastewater reuse utility operation and a show-
ing of financial ability to provide the service, whether the
purchaser is the municipality or the entity purchasing
the utility from the municipality.
Kmnxy --.. Z d,. 64-a4: s. 6, on. 93_51.
1272
CITY OF CLERMONT, FLORIDA
SCHEDULE OF REVENUES/EXPENSES — UTILITY FUND
FEBRUARY 1, 1994 — JANUARY 31, 1995
Operating Revenues w-
Charges for Services
Miscellaneous
Total Operating Revenues
Operating Expenses
Personal Services
Utilities
Administrative Services
Repair/Maintenance
Professional Services
Insurance
Operating Supplies
Total Operating Expenses
(9 Gvg1F.n —
SFtiJ."n —
Operating Income
4 y 5 5, 1 iP
7sz, LJS
$ 1,231,556
402649
1,272,205
327,516
155,091
103,982
215,403
104,959
45,085
35,698
987,734
284,471
(decreasing from 7.4% to 4.3%) as well as the rapid increase in commercial construction
permits for 1991-92 through 1992-93 (from $480,000 to $5,551,681).
I look forward to speaking with you on this matter at your convenience.
In
CITY OF CLERMONT
PROJECTED OPERATING EXPENSES OF LAKE HILLS
UTILITIES UNDER CITY OWNERSHIP
LINE #
DESCRIPTION
AMOUNT
1
Salaries/Benefits
$ 15,600
5
Purchased Water
200
7
Purchased Power
9,300
8
Chemicals
150
9
Materials/Supplies
550
10
Repair/Maintenance
2,900
14
Laboratory/Engineering
6,000
17
Telephone
100
19
Transportation
250
28
Travel
350
32
Miscellaneous
1,467
34
Administrative Allocation
6,400
$ 43,267
PFM
P[JBLIC I NANCALMANAGENEE T, INC.
Finandal and Iav,mnent Advisors
5940 EntaprLk: Parkway
Forrmyers. EL aa9R5
81.3-693-7117 (Fax) 813 W-3-6584
February 21, 1995
ME_M R ANDU—M
To: John Springstead
Springstead Engineering
From: Jezxy L. Write_--
Publiq,�Manaoiement, Inc.
Re: Laka Hills UtnZi.ties Inc. Acquisition
Enclosed is a revised version of a Conversion Chart for the City of Clerxnont's
proposed acquisition of the Lake Hills Utilities, Inc. (LHU). Per our earlier discussions,
this Conversion. Chart is critical for PFM and the City to evaluate the feasibility of
acquiring LHU. Pleasc review the enclosed and reti zn continents to me regarding
revisions in the expenses that should be made for the City to convert LHU into a City
Department.
The enclosed Conversion Chart is one of thrcc charts depicting growth in LHU.
This is PFM`s "Worst Case Scenario" which assumes growth of two (2) additional
customers per month. Other Scenarios assarne growth of six (6) and twelve (12)
customers per month. Revenues are projected assuming the growth to be evenly
distributed throughout the year and that the City is able to maintain.the current rate bast
of LHU. Water usage was assurned to be the average use per customer of the
consumption during the calendar years 1993 and 1994. Weather patterns may impact
water usage if they vary from the historical period used.
In addition, PFM will need to receive a copy of the improvements, and their
associated costs, that the City will need to undo take to bring LIIU up to City
specifications. PFM will also require a copy of the Book Value or Replacement Value of
LHU_ It is my understanding that this analysis has been performed by your fitm-
Adana Austin Bo=a Denver FamMyas Bandsburg Housm Memphis MW=po6- N2w York NewpartBeach Odando Phi7adrlphia Pordand San FranOS
An AmIlate of Marine Midland Bank mf1185.dw
. %A$E 1:0W U'Y'ZL. US
- HISTORJCAL FINANCIAL AND CONVERSION TO CITY OWNERSHIP
Line
No.
Description
L992
1993
L094
City
Taal Water Under
Actual
Actual
Prelitnfnary
Adtusuuenu
city oNkmerswp
Operaring RfrVeaucs
Weer
I
Residential
36,955
99J29
I20 j8$
0
120,388
2
Commercial
1-98
1.293
1,651
0
1,651
3
Irrigation.
4810
0
1.810
4
Guarant=dRev
6.033
7,734
11,360
0
11,360
5
Tardal Co mcction Fees
1215
0
1.215
6
RecomirctionFe
Z055
0
Z055
7
Other CIRR)
S''7
913
0
0
8
NvCrss Servi= Charges
2,535
3XL
265
0
265
9
Itrtertst Iucome
1,564
1,096
0
0
10
Sub-TotalOperat mg Revenues
99,26-21
113.391
138,744
0
138.744
System Growth
TOTAL Operating Revenue
99,202
113,391
13S.744
0
138,744
Operating Exp-�;"l
I
Salaries and Wages - Employ=
0
0
0
2
Salaries and Wes ai - Officers, Director-.
-
0
widMajority SWCkhulde&,>
0
0
0
0
3
Employee PewtoasandBencfits
0
0
0
4
Payroll Tal=
a
0
0
0
5
Purchasedwater
o
0
0
0
6
Purctmed Power
9,729
8,146
9,301
0
9,301
7
Fuel for Power Purchased
287
0
0
0
s
Chcmicls
568
225
ISO
ISO
9
Materials Wd Supplies
0
5.119
4,380
4,180
Cvutr dual Satirist
10
-External(Non-Courses)
Sa46
6,953
2.877
2,S77
i I
- Acrntmiing
3,033
3,875
0
0
12
8,553
1,722
4,490
_
4,490
13
- F.uemal (Contract)
397
Z376
617
617
14
-Laboratory &sFngineenng
?,640
940
5,538
5,538
15
-A&niustrrcivt
0
9.915
13 200
13,200
16
Eme zvocy Telephone Lij=
306
318
321
321
17
'Telephone ,
2,677
2,791
0
0
18
Rents
4,024
5.003
3.5-n
3.522
19
TrawportstionEzpease
Tour
21203
?,477
3,561
3.561
20
- Vehicle:
1.314
I,470
0
0
21
= Gener`4 Liability
1'M
2-399
0
0
M
- Worlwr-Ws Cyr Dsa,ioa
0
0
0
p
23
- Other
0
0
0
0
24,
Cussomor Billing25
- Billing Supplies & E.cp.
3,177
1.719
0
0
0
26
- C.amputer Supplies & Erp.
369
123
0
0
27
Office Supplies & Srarionary
8S0
IX0
q
2g
Trani & LodgiuS
352
0
0
0
29
Trade & Buaiuess Mamherships
0
0
0
0
30
Regulatory Commission ma's
953
953
0
0
31
ftad Debt Eaptasc
0
0
0
0
32'
MisMUM eousErpeasa
136
0
0
0
33
Coutiogen,y
0
0
0
0
34
Administrative Allocation
0
0
0
0
0
35 Sul> -Taal Utility Etpcuse
51271
55,754
.47-W7
0
47,987
36 Un'Iity gearing Incornc
47,991
57,637
90,757
0
90,757
Please tiro Attached Page for-Foatuot m
TAPE DIMS UTffirl s
- ' - MSTORICA L FINANCIAL AND CON VMION TO CTI'Y OwNERsm
Line
Total Water Under
No_ Description
City's Ownersbip
FY 1995
FY 19%
FY 1997
FY 1998
FY 1999
FY 2000
Operating Revmucs
Water
1
Residm6ni
120,3b8
136,800
I44,000
10,400
190,800
214-00
237,6W
2
Commercial
4651
1,651
1,651
1,651
1,651
1,651
1,651
3
lrrigaLioa
1.510
1,810
1,810
1,810
1.S10
LS10
1.810
4
GuaranteedRev
3,192
1.182
3,182.
3,182
3,1S2
3.182
3.152
5
Tnitial Connection. Fees
360
360
360
360
360
360
360
6
Reconneaivn Fces
2,055
2,055
21055
2,055
2.055
2105$
2,OSS
7
Other (am)
0
0
0
0
0
0
0
3
Misc. Service Chatoes
265
265
265
265
265
265
265
9
Interest income
0
a
0
0
0
0
0
10 Sub -Total Operating Rcvonaes
129,711
t46,1M
153,323
176,723
200,123
23,523
246,923
System Growth
0
0
0
0
0
0
0
TOTAL Operating Fxvenue
129,711
I46,IM
1531323
176,723
200,123
223.523
2.46,923
Operating EXF-`s
0
0
0
0
1
Salaries and Wage* - Employees
0
o
0
2
Salaries ao3 Wages - Officers, Dir-Wo
and M:yutrty Stockhold
0
0
0
0
0
0
0
3
Employee PensionsandBenefits
0
0
0
0
0
0
0
4
Payroll Taxes
0
0
0
0
0
0
0
5
Purcsed \Valor
ha
0
0
0
0
0
0
0
6
Purctmed. Power
9,3ai
9,301
9,301
9,301
9r01
9X1
9.301
7
Fuel for Power Purchased
0
0
0
0
0
0
0
8
C'heecals
ISO
ISO
ISO
ISO
190
ISO
ISO
9
Marcrials and Supper
4,3SO
4X0
4XO
4AO
4,380
4.380
4,380
Couaacmal SerVicG4
10
- Admmistzation
2 8T7
2 S77
2 a T7
2,877
2 877
2,877
2,877
11
Accounsing
0
0
0
a
0
U
0
12
- Lcoal
4.490
4,490
4.490
4.490
4.490
4,490
4,490
I3
- External Contracts
617
617
617
617
617
617
617
14
_ I-ihnrstory BcEoginacdng
5.538
5,538
5.538
5.533
S,S38
5,535
5,53,S
15
-
13,200
13.200
13.200
13.200
13,200
13_100
13,200
16
Emcrgency Telephone Lines
321
321
321
321
331
321
331
17
Telephone
0
0
0
0
0
0
0
1s
Rents
315,22
3,5?"
3,5"-
3=
3,5?'
3,522
3,52
19
Transportation. Expense
3,561
3,561
3,561
3.561
3,561
3,561
3,561
Insurance
20
- Vehicle
0
0
0
0
0
0
0
21
General Liability:
0
0
0
0
0
0
0
wortrmads Compensation
0
0
0
0
a
0
0
23
_ Other
0
0
0
a
0
0
0
24
Custutuer Billing
0
0
0
0
U
0
0
25
- Billing Supplies & Fxp.
0
0
0
0
0
0
0
26
- Computer Supplies & Exp.
0
0
0
a
o
a
0
27
Officn Supplies & Stationary
0
0
0
0
O
0
0
23
Travel & Lodging
0
0
0
0
0
0
0
29
Trade & Busitwss Msmberships
0
0
0
0
0
0
0
30
RegulawryCommission Expensm
0
0
0
0
0
0
0
31
Bad Debt Expense
0
0
D
0
0
0
0
32.
If,sa:Oancousaperisc
0
0
0
0
0
0
0
33
Contingct,ay
0
a
0
0
0
0
0
34
Administrative Allocation
0
0
0
0
0
0
U
35
Sub -Total Utility Expene
47,987
47,9b?
47A7
47-SW
47,987
47.9b 1
47,9V
36
Utility Operating In-
81,72.!
93,136
103,336
1'..1'' ,736
13-2,136
175,536
198,936
F1ca3c Ste Attached Pagc for Footnotes
----------------------------------------------------------
03/16/95 THU 11:57 FAX 813 693 6384 PUBLIC FINANCIAL MGT INC 002
PFM
PUBLIC FINANCIAL. MANACEME\Tr, INC.
Financial and Investment Advisors
5900 Enterprise Parkway
Fort Myers, FL 33905
813-693-7117 (Fax)813-693-6384
March 16, 1995
To: Joe Van Zile
City of Clermont /
From: Jerry L. Wrigh
Public F' Management, Inc.
Re: Clermont Utility System RFP
Enclosed is a table depicting the City of Clermont Utility System's Net Operating
Income, Debt Service and associated Debt Service Coverage Ratios. Please review this
table for accuracy. Also, at your convenience, please call me to explain the following:
1). The dramatic increase in Operating Expenses for the Utility System between
1992-93 and 1993-94.
2.) The decrease in unemployment in Clermont from 1991-92 to 1992-93
(decreasing from 7.4% to 4.3%) as well as the rapid increase in commercial construction
permits for 1991-92 through 1992-93 (from $480,000 to $5,551,681).
I look forward to speaking with you on this matter at your convenience.
m yermon4 r rorma
IT#�i#ystem Neteenue .
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
12 Mos. Ending
Jan.1995
Gross Revenues
1,118,064
1,092,768
1,062,790
1,140,249
1,186,659
1,227,534
1,272,205
Operating Expenses
627,603
731,397
---------------
743,715
725,969
794,615
995,759
987,734
etRevenue
490,461
361,371
----------- ---
319,075
-------------—
414,280
-------------—
392,044
--------------
231,775
--------------
284,471
Debt Service
302,628
327,330
335,579
339,689
338,256
290,083
Debt Service Coverage
1.62
1.10
0.95
1.22
1.16
0.80
CITY OF CLERMONT
PROJECTED OPERATING EXPENSES OF LAKE HILLS
UTILITIES UNDER CITY OWNERSHIP
LINE
DESCRIPTION
1
Salaries/Benefits
5
Purchased Water
7
Purchased Power
8
Chemicals
9
Materials/Supplies
10
Repair/Maintenance
14
Laboratory/Engineering
17
Telephone
19
Transportation
28
Travel
32
Miscellaneous
34
Administrative Allocation
AMOUNT
$ 15,600
200
9,300
150
550
2,900
6,000
100
250
350
1,467
6,400
$ 43,267
FM
P1M1JC RCIALMA ACEMENT, INC_
rinancLd and invc=cnt Advisors
5900 F� Parkway
Fact Myers, FL. : a9Q5
SL3-693-7117 (Fax) 813--69--,-6584
February ' —)I, 1995
MEMORANDUM
To: John Springstead
Springstead Engineering
From: Jerry L. Wri�� = -
Public _ ATManagement, Inc.
Re: Lake Hills Utilities Inc. Acquisition
Enclosed is a revised version of a Conversion Chart for the City of Clermont's
proposed acquis'iti.on of the Lake Hills Utilities, Inc. (LHU). Per our earlier discussions,
this Conversion Chart is critical for PFM and the City to evaluate the feasibility of
acquiring LHU. Please review the enclosed and return conunents to me regarding
revisions in the expenses that should be made for the City to convert LHU into a City
Department.
The enclosed Conversion Chart is one of than charts depicting growth in LHU.
This is PFM's "Worst Case Scenario" which assumes growth of two (2) additional
customers per month. Other Scenarios assume growth of six (6) and twelve (12)
customers per month. Revenues are projected assuming the growth to be evenly
distributed throughout the year and that the City is able to maintain the current rate base
of LHU. Water usage was assumed to be the average use per customer of the
consumption during the calendar years 1993 and 1994. Weather patterns may impact
water usage if they vary from the historical period used.
In addition, PFM wril need to receive a copy of the improvements, and their
associated costs, that the City will need to undmtak-e to bring LHU up to City
specifications. PFM wM also require a copy of the Book Value or Replacement Value of
LHU- It is my understanding that this analysis has been performed by your finn.
Aria= Austin Boson Denver Forthlyers Hamsburg Hou5Wn &Ummhis Mnsueapolls NewYork Newport Bract Odando Philadelphia Pordand San Francs
An Arcuate of Marine Midland Bank M= Bs.d"
The requested information will be used by QFM to conclude our analysis of the
Proposed PLwchase Price and Conditions of Sale between LHU and the City of Clermont.
I will contact your office later today to discuss thCse nizaas further.
cc: Mr. Joe Van Me
. LAKE WTI I S UTUMUS
- HISTORICAL FINANCIAL AND CONVERSION TO CTT'Y OWNERSM
Line
L992
1993
1994
City
ToW Water Under
No.
Description
--
Actual
Actual
Preliminary
Adiustrneats
C_"ttY OPlDcrship
Operaring AcYmucs,
Warcr
1
RcsideatW
36,955
99,129
120,388
0
120,358
2
Counnercial -
1,298
1293
1,651
0
1,651
3
Irri.arioa
1,810
0
L810
1
Gaa=z,=qdRcv
6,033
7,734
11,360
0
11,360
Wdal (oemoction Fees
1215
0
1,215
6
Re:colmm-40nFtcs
7,055
0
4055
7
Other (IRR)
8'_7
913
0
0
8
Mtst; Service Charges
2,535
3,226
265
0
265
9
IntertstIncotne
1.564
1,096
a
0
10
Sub-TotalOPetal mg Revenues
99,26'21
113,391
138,744
0
138,744
Syst= Growth
TOTAL Operating Revenue
99,262
113,391
138,744
0
138,744
OPcvwi'S ExPm-
I Sala iU and Wages - Employees
2 SaLlries and W4gar - Offic a, Director:
and Majority Srockholdo&
3 Employee Pensions andBeaefits
4 P•ayrotl Tax=
5 Purchssc water
6 Pacdtased power
7 Fuel for Power Putchascd
3 Chemicals
9 Materials 4a3 Supplies
Cbntra�rral S'crtilccs
10 - F,xtcrosl (Non-c0arf=)
I -Accosting
12 L&e gal
13 - F_C{ MAI (ccuu ad)
14 _ Labo f tpry &- Engineering
15 - Admmstc-,rtive
16 Zr icz-,4 tcy Telaphonc Lows
17 Telephone
18 Rcats
19 Tram;PoctatioaExpcnse.
Insmaace
20 -,Vehicle:
21 = Gc=4 Liability
- Worlawes C•v4R2ad0j1
j - Other
24 Chsiamar nawz
?_5
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9.729
8,146
9,301
9,301
287
0
0
0
568
225
ISO
180
0
a.119
4,380
4X0
8,..,46
6,953
2,677
3,5T7
3,083
3,875
0
0
8.553
1,772
4,490
4,490
397
2.376
617
617
2,640
940
5,538
51538
0
9,915
i3, 00
I3, OQ
306
31S
321
321
I6T7
2,791
0
0
4,024
5,003
3.52 _
3.522
21203
11477
3,561
3.561
1,314 1,470 0
1,378 2�399 0
0 0 0
0 0 0
- 8r1Lng SuppLzc & Esp.
5,177
1.719
0
26
utcr Supplies do
OAP PP gyp•
368
123
0 �+
27
Office Supplies & SWiWazy
880
1,230
p
28
Travel & Lodgiug
352
0
0
29
Tradc & Business Memberships
0
0
0
30
Regabtorg Coa=6gsion Expenses
953
953
U
31
$act Debt Eape we
a
o
0
32 '
MiuXil =tts use
136
0
0
33
Contiagenry
0
O
0 -�---- -
34
Adminioadve Allocation
0
0
0
35 Sab-Total Utility Expxasse 51,271 55,754 47yfi7 0
36 UtHhYOr,&rariapincome 47,991 57.637 90,757 0
Please tiro Attached Page forFootnotes
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
47,987
90,757
Line
No. Description
Operating Revenues
barer
1 Residential
2 Commercial
3 Irrigation
4 GuaraawdRev
5 initial Connection Fear
6 R=anoxion Fees
7 Other (IRR)
S Mi5c. Service Charg=
9 Interest income
10 Sub -Total Operating Revenues
Sysrcm Growth
TOTAL Oper dog F=cnue
Operating
Dqx-
I Salaries and Wages - FEnployces
2 Salazira and Wages - Officers, Directors
and Ma}omy SLoc:khol
3 F.mployeePensions and Batefus
4 Payroll Taxes
5 Purdrasod lYater
6 Purchased Power
7 Fuel for Power Purchased
S chemicals
9 Materials and Supper
Couuactual Services
10 - Administration
11 - Acn:ow=g
12 - Lsgal
13 - eummal Conu'acts
14 - Laboratory & Engineering
15
16 Emergency Telephone Lines
17 Telephone
lS Rents
19 Transportatione
InSIII'.1IICC
20 - Vehicle
21-GeneraiLiirbility'
'3 Worlanan's Compensation
23 - Othcx
24 Caswu=Billing
25 - Bi[Ifna Supplies & Exp.
26 - Compu&a' Supplies & Etp.
27 Offica Supplies &. Stationary
23 Travel & Lodging
de die 29 Trade Business Memberships
30 Regulatory Cammissloa Expenses
31 Bad Debt Expense
32 MisceilaueousFAPCWe
33 cmdogencynisaa
34 Admiave Allocation
35 Sub -Total Utility Exptmse
36 Utility Operating Inco=
Please See Attached Page foe Footnotes
LAU FULT..S UTILrr ES
- MSTORICAL FINANCIAL ANJU CONVERSION TO CITY OWNERSM
T
o- waux lloder
OWS Ownership FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000
120,35$
136,500
144,000
167,400
190,300
214,200
237,600
1,651
1,651
1,651
1,651
1,651
1,651
1,651
1810
1,810
1,810
1.810
1.Slo
1.510
11910
3,152
3.182
3,192
3,182
IM
3.182
3.18?
360
360
360
360
360
360
360
2 055
21055
7,055
2.055
2) 055
2,055
:1055
0
0
0
0
0
0
0
265
265
265
265
265
265
26$
a
a
_ 0
0
0
0
a
129,711 t46,'M 153,323 176,723 200,123 223,523 246,923
0
d
0
0
0
0
0
0
129,711
14b,L Z
153,323
176,723
200.123
223.5:3
246.923
0
0
0
0
0
0
0
0
0
0
a
0
0
0
0
0.
0
0
0
0
0
0
0
0
0
0
0
0
a
0
0
0
0
0
0
9,3a 1
9,501
9,301
9,301
9,301
9,301
9.301
0
0
0
0
0
0
0
ISO
ISO
ISO
ISO
190
ISO
ISO
4,380
4,380
; 4XO
4mo
4X0
4,380
4,380
2,877
2,877
2.577
2.877
2 877
2,S77
2,877
0
0
0
0
0
0
0
4,490
4.490
4.490
4.490
4.490
4,490
4,490
617
617
617
617
617
617
617
5,538
5�538
5,538
5.533
$,538
5,538
5,535
13,200
13.200
13200
13, 200
13,200
13 t00
13;) 00
321
321
321
321
331
321
321
0
0
0
0
0
0
0
3,P,2
3,5?"
3,5�
3=
3,SM
3,5?-
3,522
3,561
3,561
3,561
3.561
3,561
3,$61
3,561
0
0
0
0
0
0
0
0
0
0
0
0
0
a
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
a
0
a
o
0
0
0
0
0
0
0
0
0
a
0
0
0
0
0
0
0
0
0
0
0
0
a
0
o
a
a
o
0
0
0
0
0
0
0
47,987 47.W7 47A7
81,'7'4 %,136 105,336
47y97 47$V 47-497 47,987
128,736 152,136 175,536 198,936
.6
/o
47
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- Publinari na
_ ATTN. `errY.``I�5.t
5900 E)texpriag-_p3.L1T�1]r;_ w_ .�. T»;• .._ _. "YIT
Fort M --.
EY+ .3 39S ., ------------z--- Re: Rey ehUes aazi .E ndi urea -for: .F[llls: Dt lzti�s, Inc. .
Dear ;. WrZ`gAt
_... _ . The purpvse,,�f the s I titter �.s-to grovd_'he..:ariditionai_--
info
rovi- v a_ F.Pbra' 16-=-.br
P h e 11e :7�lE6rmati YOilr re and TahTa�.�
_-"- ex e�?. _twg:�zathgp�le�
pretimzt1 ¢oe�; =.0sed the94 r h
_-
-
- .
laftt re umn Lh`dve shawri - acfi, -
�. �. .,. _,.. , .,. �. first teri:` �
mant..hst: ;••• ; _ }1a7, cTata for the
Table 3� s «: - *...
ri aR b *ajcac%wsn,t o-CQatracrtua]:{Sexvsces -Rents rnsi ante
and Misce.l lea Ezgepsea -as shot+uit -t)te $SC''Report's" £or 193�'
and 1993... Thettttement of&�veuu�s-:xppn�.;r•*res::�or�994'
does irclt e_CnntXactua] -Services..,_ •Tl�e prelis�inarp total' fcr_
1994 is 523,�Q and i brQkep;down as,follows
! Trae�smzgfi�o TJistr�but Qa'.°Rxpense'-Mains
4t�
g�exll2g..;ii;l;�echn2alal 5erud; Adistrativo.
ti $4490
! a t+3 aLT�,dSeTYIQ@Sx $13260
- ... The Peed o,xts e` Iei,ess:',tea¢ameat feeiarged h _ -fit- 1.� e�.,.aacf�`x��es�srowx�•--a`�i-
thQ syem aueGerr wading,' -dill l tigy " "' nistztioi}, etc
Tha main %t
., f?l niexpeer��8ata7r�r a=txaFex� at the
site to asto�e,.r�Cords egturicdy o � e Wlsen the ri�w rit
was nearing aompi`etionxthe records �g�mo_ved nto_the _nor' of3f�ice
so, thec o,^I3anc�- lain-eYp� �se-o
_Table .;• rovand, Y1�'i�e: fatal.-;coanrrctio-oir the sYgtby�nt1�.-`_- --- -
_..since sanuaY 992�-�a'b'�e;-•a s. a?14'�0 cf=-•hSot+�t,=-.a, .� _- - ----_
=corm _cti�ons*mpa,�"'�.�M bYdc��#t-aai}=4'�-'1cruo` �•., t
If you:'lras;e (nYl a�'ddzguestian=��lease do n�hTxt�tn -
=�te l ephcn� me I �,•
•_ � 1 y'� YF J't . {cl � ._' •mac is ftrt .�+ 1 ts. 1 �Irr y1 r_�� � • T F t.
_•: �.: "•Yours vl � c::..•Sa.+..' _�. r . t —
-—'•HdII1p Oa�P.:�'".. ' ..- ' i - ..� - - - .Y ..A.s r..r
7.
_ - - - P - — --- --. -.
••:
-4ox 915. lF d�-3?J9�-!�4-$9'fQNcee��65124 h
' Y .mot ' .•:.�1..,:.:.hY\ i!5• � x r � � r'�• � i ?' ia„
"F•i^7 7 S.; •'! ': tIr K .{i r•t�.>s.r t L A v
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- H8C17-FQh-95
LAKE KILLS UTILITIES, INC.
TABLE 1
PBHLImmol
ACTUAL
Man MTRMT
1913
1994
J8N-OCT 94
MEB SE&YICB-HBSIDUTIAL
$95,129
$120,388
$100,517
WATER SERVICE-COtOOCIAL
$1,292
$1,651
$1,596
WITE6 9HHVICH-IEEIGATIOA
$913
511810
$1,567
NAYS& 9RVICE-GORUTKED
$7,734
S11,360
$9,346
IHITUL COMCTIOS FEES
$1,620
$1,215
$1,415
k2makECTiOH FEES
$1,465
$2,055
$1,710
misc. SEaVICH HEVHHDa
5120
$2b5
5145
TOTAL MATU SMICS
5112,294
S138,744
$115,948
1
RPC17-Peb-9S
ABLE 2
pmIMIBASY
ACTUAL
0 A M BIPERSE
1993
1994
JAR-OCT 94
SOUBCE OF SOPPLY•MZLLS ---------
----_•---
------
REPAIR PASTS E MATERIAL
$48$
EQUIPMBNi EERTS
$63
RITERHAL ROR-CORTEACT
$1,44S
+ $1,995
$1,595
TOTAL BOORCE OF SPLI-YELL$
$1,994
$1,995
$1,995
PORpIEG EYFEHSE-------
------••
- •""--
POMRR-8L8CTSIC
$7,274
: $6,084•
$5,881
REPAIR PARTS 4 MATERIAL
$123
$1,840
$1,840
ZYTERRAL ROE-CONTUCT
$575
EITE86AL CONTRACT
$1,601
• $617
$150
EMGBCY TRUJI019 LIRE
$318
a $321
$261
TOTAL PUMPING MISS
$14,015
$8,664
58,139
WATER TREATMSRT EIPENSB
---------
----- ----
POw64-BtRCTRIC
$671
• $3,217
$1,962
CHEMICALS
$225
. $180
$180
REPAIR PASTS d MATERIAL
$50
$64
$64
LABORATORY SUPPLIESIEIP
$72
$129
$62
EITBBAAL LABORATORY FEES
$365
0
TRUCK BURNS&
$2,471
$3,550
$2,320
WERRAL 101-URTUCT
$1,972
- $214
4214
TOTAL Vt%R TRZATtMT ZIP
$6,031
4
$7,357
$5,404
TRARSIDIST Ilk -WITS
-------'
--------
...... —
j%JJ i PARTS F MATERIAL
$1,659
: $1,240
$492
8NG E TBCBNICAL SRRYiC89
c $261
$1B1
EITEBRAL LABORATORY PEES
$520
55,538
$4,908
TEBCI EIPERS8
TOTAL TRANSIDIST EIP-MAIMS
$2,119
$7,072
05,682
OISTRIBBTIOY SESEH90LB6
----•-�
-"•----'
"----""
94PAIE PARTS & MATERIAL
$35
S35
95G 6 TRCNEICAL SERVICES
$SS
EY UHL MON-CoitRACT
$669
TOTAL DIST RESERVOIRS
-•-_ $55
-- 4704
$35
TRANS/DIBT-MSTER9
--- ----
---------
—�-----
REPAIR PARTS fi MATERIAL
$564
$0
SO
TOTAL TEANSIDIST-METERS
$564
$0
00
11.
tiYC17•Ycb-95
P$BLDubuY ACTUAL
O i K UP= 1333 1994 im-OCT $4
BOLLDIeGS E GBOONDS -- ------------------
BBPAIB PARTS 6 KATBBIBL $?56 - S1,t01 $1,054
HQatPKUT UNTS $4,939 3 $3,5222 $3,522
31129NAL BOK-CONTQAct $3,536
TOTAL BDILDI9G5 i Guam
0,632
$41723
$4,576
TOTAL 0 & 9 EDUst
$25,556
$36,717
$25,833
I
HPCll-Fes-45
TADLR 3
Pic ACCODNT Im
1992 ANOUKT
-
1993 LRODBT`
COITRACTUAL SERviCRS
$22,914
$25,784
FINANCIAL STATEMENT NAM$
^
SOURCE OF SOPPLT-DELLS
EKG 6 TECH SERVICES
$75
ExTum LAB FEES
$2,565
RXTEENAL-MON CONTUCT
$81
11,445
PUMPING UPRISE
EITERKAL COKTUCt
$397
$575
YXTHRBAL-NOK CoNTNACt
$2,900
$1,401
WATER WATIRAT EXPENSE
IxTa"AL LAB FEES
$365
HITIRRAL-101 CONTRACT
$1,972
TBANSIDIST EIPSISE-eAIN5
RITERSU LAB PEES
$520
DISTRIBUTION RESERVOIRS
- �•
EKG E TICK SERVICES
$55
80IUMS AND GRoOBOs
EXTERNAL-901 CONTRACT
$5,165
$3,536
GENERAL R ADMISTRATIVR
ACCOUBTIOG E AOOITING
$3,003
$3,E75
LRGAL EIPEIBE 1
$8,553
$1,722
PRES-OUTSiDE SERVICES
$9,915
$22,919
$25,M
PSC ACCOUNT BAKE
1992 AMOUNT
1993 AMOUNT
RENTS
$4,024
$S,001
Fri"CIAL STATun? Sam
SOURCE OF SOPPLY-MILLS
EQOIPXI9T WTS $fi3
BDILDIRG AID GBOOIDS
SQOIFMBKT BENTS $4,023 $4,939
$4,D23 S5,OD2
MOST OF THIS MIS FOR 19 OFFICE TRUM. TEIS MERU RIDKD IN OCT, 1994,
AT THAT TIME .THE NEW PLANT as CLOSE ENOUGH TO COMPLETION WE USED TRIT
POE ADKMSTUTIVK SPICN.
l
NPE17-Peb-95
PSC WOONT EANE 1992 AHOURT
1993 AEOSNT
INSURANCE UPRISE
$2,611
$3,876
FINANCIAL STATEWT RAMS
GENERAL L ADMINISTRATIVE
IYSUEONCE-VEEICLN
$1,3I4
$L,176
INSURAl10E-GUERAL LIARILIn
$1,218
$2,349
12,612
$3r869
PSC ACCOUNT NAME 1992 ASQUIT
1993 MOM
"
MISCELLIMEOUS EYPENSES ._�.__�___
-------------..
$7,192 -
$6,185
................��.-_�..----
FINANCUL STATIOT NAME
-,-----------------
..
SOURCE Of SUPPLY-WH
En aficY TELUNIE um
$306
$316
CUSTOMER NILLIM
KILLING SUPPLIES E EIFENSN
$3,117
$1,719
COMUUTNN SUPPLIES E EYpEN9E
$369
$123
GENERAL L ADMINIETNATIVE
MICE SUPP6iRS i WEISZ
$880
$1,230
TELSPEONB
02,677
$2,791
TRAVEL E LODGING
1352
1SISCELLiHR0US BZP-OPEEATING
$116
I
• EPC17•Feb-95
TABLE 4
TOTAL CGEXECTIGx9
81 MONTI Mil
1992
TO PBBSEHT
•
1992
1993
1954•
1995
JANUARY
193
263
369
450
esseaARx
190
261
3?8
455
KARCB
195
275
IN
APRIL
215
284
390
W
219
294
393
JUGS
223
303
408
jULT
236
313
419
AOGOST
237
313
419
SEPTEMBER
247
341
424
OCTOW
253
346
434
aovmBs
254
151
434
DECEMBER
257
361
443
11941L COBHECTIG95 80
104
82
MONTHLY ►:ERAGE
• 6.61
8.6T
_---6.83
J.00
TAHLB S
�
SOTAL COHBECTIOBS
CUSBUT
➢BVELGP%W
AT saiLwoT
COH88CTIG86
GR4TU BILLS
640
392
GULTER PINS
500
63
ARHOYREAD
I50
8
GUEER PROPERTY
402
0
CAAPP PROPERTY
250
a
1942
455
PC MIJC FrNANTCIALMHNAGEM Nr, INC.
frawdal ant krvegment Advi-s
$900 Enterprise Parkway
For My=. F4 33905
813-693-7117 (Fa)O 813- 693-6384
February 17, 1995
MEMORANDUM
To: John Springstead
Springstcad Euginmriig
Rom I=Y L. Wright
Public Financial. Management, Inc.
Re: Lake Hls Utilities Acquisition
Enclosed are the three Conversion Charts which show the Projected Water
Revenues for Lake I-i11s Utilities, Inc. (LW under the growth assumptions mentioned in
my prior memorandum. These projections are based on historical water usages from the
years 1993 and 1994 and project additional growth in the form of two, six, and twelve
new connections per month. Please review the column "City Adjustments" to indicate
what corrections need to be made to accommodate the anticipated growth as well as the
actual conversion to public ownership.
Please forward to me copies of your analysis on the necessary additions to LH:U to
accommodate City standards_ I will fax you a copy of PFM's report tomorrow as we
finish our analysis.
I appreciate your prompt attention to this matter. if 1 or my Firm may be of any
=4s ;tauc a to you in this or other related matters, please do not hesitate to contact us at
813/693-7117.
Enclosures
cc: Mr. Joe Van Zile
City of Clermont
Aft= Austin Boston Denver ft-LMyaS Harris Hansum Momptr s btmneaporis New York NewpratBMch Orlando PhBadelphla Pordand Sera Frandsm
An AflTBIe of Marine Midland Sank m021795b
LASE HILLS tUrrr_ri'IES
- HISTORICAL FINANCIAL AND CONVERSION TO CITY OWNERSHIP
Une
1992
M3
t994 City
TotaMsterUndcr
No_ Description
Actual
Amrsl P rllmmar y Adjastmerrts
City Ownership
Operatirto Revenues
Water
l Residential
86.955
99,129
120-W
120,388
2 commercial
1,298
1,293
1.651
1,651
3 Irrigation
1,310
1.8I0
4 Gvft=Eeed Rcv
6,083
7,734
11360
11,360
5 Inioal Connectim Fees
1,215
1,215
6 Rtxooncadoa.Fees
2,055
2,055
7 Od- (MR)
827
913
0
g Misc. service: ChmTes
IMS5
3'=6
2G5
265
9 Tatcrest Inca=
L564
1.096
0
10 Sul -Total Operating Revenues
99,262
113,391
IA744
138.744
System Growth
TOTAL Opera ingReveaue
99,262
113.391
138,744
138.744
Operating. Etpcase-°
1 Salaries and Wap,es - Employees
0
0
0
0
2 Salaries and wages - Officers. Direct m
and Majority stockholders
0
0
0
0
3 Employ= Pea.�om and $e»eGts
0
0
0
a
4 Payroll Taxes
0
0
0
0
5 Parcbased wsrrr
0
0
0
0
6 P=basedPowe:r
9,729
8,146
9,301
9,301
7 Fact for Power%thased.
M
0
0
0
8 (hemicab
568
225
180
180
9 m.u°Yialsand Supplies
0
3,119
4,380
4,380
Contcadual Services
10 - Adminisamtion
8246
6,953
2.8TT
2,977
11 - Aexouatiag
3.083
3,975
0
0
12 - Legal
815,53
L,?'»
4.490
4,490
13 -atex- d Contracts
397
2,376
617
617
14 - Labomtory & Engf�g
2,640
940
5.538
S na
15 - Administration
0
9-915
13,200
13300
16 Emergency Telephone Lire
306
318
321
321
17 Telephone
1677
3,791
0
0
18 Rrxtts
4.024
5.003
3-m
3,522
19 Transpoetau-Ew--
2.203
2,477
3561
3,561
Insurance
30 -vehicle
1.314
1,470
0
0
2i-GcneMLiability
113n
2,399
0
0
» _ we7rl,^m s Compensation
0
0
0
0
23 _ Other
0
0
0
0
?4 Customer Bilfmg
0
25 - Ming Supplics & Exp.
3,1T7
1,719
0
0
26 - Cnmputcr Snpplies & Exp.
368
123
0
0
27 Office Sappacs & Stmionary
380
1.230
0
0
28 Tmvet & lodging
352
0
0
0
29 Trade & Bwincss Memberships
0
0
0 -
0
30 RegalaroryCo®ission.Expenses
551
953
a
0
31 Bad Debt Btf% Mse
a
0
0
0
32 Mlspelianeetuexpense
136
0
0
0
3i Contingency
0
0
0
0
34 ArfminLgraxiye A11ocE�on
0
0
0
0
35 Sub -Total Utility Enptw*
51.271
$5,754
47.937 0
4.7,937
36 Utility Operating Income
47,991
57,637
90.757 0
90,757
Please See Att coed P%e for Footnotes
a 1R
LAB I nJLS YJ1'iLi'I'IF�S
= HISTORICAL FINANCLAI, AND CONVERSION TO CITY OWNERSHW
"7-5 "- Car S e Grp r,.- N
Line
No.
p_cripri�
Operating Revenues
Water
1
Residential
Commerial
3
Trrigarion
4
Guaranteed Rev
5
Initial CaG a Dion Izers
6
Rcconaection Fee,
7
Other (MR)
8
Misr Scrvica Clraroes
9
laraat Tneoene
10 Sub -.Total Operating 1>;CVMU C
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
I6
17
18
19
20
21
23
24
25
26
27
28
29
30
31
32
33
34
System Growth
TOTAL Operating Revenue
Operating Expense~
SaWim and Wagcy - Snpiovcm
salarties aad wages - ae:'-e� bi-,.
and Majority Stocldrolder.
Employee Pensions and Benefits
Payroll Taxes
Purchased Water
Purchased Power
Fuel for PowerPmshaed
Chemicals .
Milcrials sad supplies
Contt=Lw selvic"
Ecaemal (Non-Coutrsct)
- Accounting
- Legal
- Exie t%al (Coarria)
Laboratory & Enghoe erm.�
- Admiasttafive
T=crgency Telephone Lmes
Tdcphouc
Rems
Tmspotragon Expense
Inc MCC
- Vehicle
Total Water Under
CitWs Ownership
11' 1.995
_ FY 2996
FY 1991
rt'Y 1998
FY 1999
FY 2000
120.383
1,651
136,800
144,000
167,400
190.800
214,200
237,600
1,8iU
1.651
1,810
1,651
1,810
1,651
1,810
1-651
1.6511.651
3,I32
3,132
3,1821
3,182
1.810
3,182
1.810
3,182
1.810
360
2,055
360
360
300
3e0
360
3,182
360
°
Z U55
2.U55
2,055
2,055
2.055
2,055
260
0
265
U
265
0
265
o
265
p
265
-_... 0
0
0
0
0
265
0
129,711
146,123
153,323
176.723
200,123
223,523
-A6,9.3
0
00
0
129,711
146,12;
153,323
176.723
200,123
223,5M
246,923
0
p
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
p
0
°
0
°
°
o
0
0
0
0
0
0
°
p
0
9.301
0
9,301
9,301
9.301
9,301
9,301
0
901
180
0
180
0
180
0
180
0
I80
o
130
p
180
4,380
4 330
4.0
4,350
4 0
,33
4.380
4,380
Ur
2.377
?,s77
2,877
Z877
2.877
4,490
0
4,490
p
4.490
0
4.490
0
4,490
0
4.490
0
4,490
617
553E
617
5.538
417
5,538
617
5,538
617
617
6I7
1-;=
13,200
13,200
WM
5.538
13.200
5,539
13,200
5.539
13,200
321
°
321
321
321
121
321
321
3.522
0
3.522
0
3.522
0
3.522
0
3,522
0
3,522
0
3.M
3561
3,561
31561
3,561
1561
31S61
3,561
- Gcoeral Liability'
0
0
0
0
0
0
0
0
- Worimaes Compensation
0
0
0
0
0
0
0
-Other
0
0
0
0
0
0
0
0
Cestan�Bi Ling
0
0
0
0
0
- Rillint Supplies & Exp_
0
°
0
0
0
0
p
- Computer s
P npplics & Exp.
p
0
°
0
0
0
0
Office Supplies & Stationary
0
0
0
°
0
p
TIZYCI &Lodpmg
0
o
°
p
°
0
0
0
de Tra& Business Membemhips
0
0
°
0
0
0
0
Re�nlatay Ceammission EVftj3 t
p
0
0
0
0
0
BM
BDebt
°
0
0
0
0
0
0
0
NfisceIlaneovs Expense
°
°
0
0
0
p
Coatiag
°
0
°
0
°Contingency0
Ae�iatrati.e A1lomrioa
°
0
0
0
0
0
0
0
35 Sab-M
36 Utility
Please Sec A
1 >
- NTSTORYCAL FINANCIAL AND CONVERSION TO (.` TV 0"C.RSHIP
wloSi Lr'►t.�ly �'�r,p
L hie
No- Destriauon
Operating Revenues
Water
1 Residential
2 Commercial
3 irrigation
4 Guaranteed Rev
5 Inittial Connection Fees
6 Reoommection Fax
7 Other (IRR)
8 Miser Service Charges
9 interest Income
10 Sab-Total Opet frrg Revenues
System Growth
TOTAL. Operating Revenue
Operating ntpe". 5
I Sataties and Wanes - Fmployees
2 Sdaries and Wages - Offlam, Ditecmrs
and Majority Stocicholc
3 Employee Pensions and Benefits
4 Psyroll Tortes
5 Purchased Warm
6 Purchased Power
7 Fuel for Power Pradosed
8 Chemicab
9 Mntrrials and Supplies
Contracmal Services
10 . Administration
11 - Accounting
12 -Legal
13 - External Contracts
14 - Lsborwnry & Engineering
15 - Administrative
16 Fmergency Telephone Lima
17 Telephone
I8 Rents
19 TransportationErgense
Ins�.t�
20 . Vehicle
21 - Gctreral Liability
rr _ Wor1®an•s Compedzvrc oo
23 - ocher
24 Utstumer Billing
25-BMb 3--SuppGeS'&EzP-
26 - Coster Supplies & lap-
27 Office Supplies & Stationary
28 Travel & Lodging
29 Trade & liusino-,*& Memberships
30 Regl a Comdssim Exile mms
31 Bad Debt Expense
32 MScallanooasHxpWSe
33 Contingency
34 Administrative Allo¢rtim
35 Sub_Totai Uulity E rpease
36 Utility Operating Income
Ptease See Attached Page for Footnotes
Total Water Undcr
Ciitys Owncrahip FY 1995 3Y 1996 by L997 FY 1998 FY 3999 FY 2000
1?0,388
144,600
166,200
189,600
213.000
236,400
259,900
1,651
1.651
1,651
1,651
1.651
1,651
1,651
1,810
11810
1,810
1,810
1XIO
L810
1,810
9,547
9,547
9.547
9,547
9,547
9,547
9-547
Logo
1,080
1,080
1,080
1,080
1,080
1,080
21055
2 055
Z055
2.055
2,055
2,055
2,055
0
0
0
0
0
0
0
265
265
265
265
265
265
265
0
0
0
0
0
0
0
136.796
161,008
18Z,608
206,008
229,408
2=08
276,208
0
0
0
0
0
0
0
136,796
161SM
182,608
206,008
Z29.408
252.803
276,209
a
0
0
0
0
0
0
0
0
0
0
9,301
0
ISO
4.W
2,877
0
4,490
617
5,538
13,200
331
0
3,561
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
47,987
88,809
0
0
0
0
9,301
0
ISO
4,380
?,877
0
4,490
617
51538
13,200
321
0
5,522
3,561
0
0
0
0
0
0
0
0
9,301
9,301
9130
0
0
190
180
18
4,380
4,380
4.38
2,877
7,877
2,
0
0
4,490
4,490
4,4
617
617
61
5,538_
5,538
5.53
13,200
13,200
13,2
3?1
32
0
0
3,5m
3,5 n
3
3,561
3,561
3,56
0 0
0
0 0
a
0 0
0
0 0
0
0 0
0
0 0
0
0 0
0
0 0
0
0 0
0
0 0
0
0 0
0
0 0
a
0 0
0
0 0
0
0 0
0
47,967 47,9c7
113,021 134.621
0 0 0
0 0 0
0 0 0
0 0 0
1 9,30101 9,301
0 0 0
0 ISO 180
0 4,380 4,380
8T7 U77 2,877
0 0 0
90 4,490 4,490
7 617 617
8 5,538 5,538
00
13,200 13.200
1 321 321
0 0 0
522 3,522 3,522
1 3,561 3,561
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
a 0 0
o a 0
0 0 0
0 0 0
0 0 0
0 0 a
0 0 0
0 0 0
0 0 0
0 0 0
47,997 41,997 47�87 47,937
158,021 t31,421 204,8721 22g?.?1
47,997 41,997 47�87 47,937
158,021 t31,421 204,8721 22g?.?1
LAa HMLS UTILITIES
- HISTORICAL FINANCIAL AND CONVERSION TO CITY OWNERSkUP
P, -
Lino Total Water Undrr
No. Description C hYs Ownership FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY ?000
i
Operating Reveffies
warm
1 Rcsident3,t1
2 Commcn-isl
3 Irrigation
4 GuaranteedPcv
5 initial Connection Fees
6 RccoandxtionFees
7 Other (IRR)
8 hew- semic a c2mg- s
9 lntcresr Income
IO SulrToud Oprrratmp Revenue*
System Growth
TOTAL OpQwmg Revenue
Op.r4tingExpensts
1 Salaries and wages - Employees
2 Salaries and Wages - Officers, Directors
mud Mnjoriry S[ocihol
3 EmptoyeePemsionsand BeneC
4 Payroll Taxes
5 Purchased water
6 PumbasedPower
7 Fuel for Power Purchased
S Chemicals
9 'vfaurials and Supplies
Conrtsctual Services
10- A.r,niniatr on
11 - Accouadng
12 - Legal
13 - External Comacts
14 - I. boraLory & F�mcegg
15 -Administration
16 Fme gmcyTelephoncLines
17 Telephone
18 Rents
19 Transpottation>±�,a
Insurance
30 -vehicle
21 - Gencral Liability
m - Worianan s Compensation
23 - Other
24 Customer Billing
25 -Ruling Supplies &Exp.
26 - Computer Supplies & FzP-
27 Office Supplies & Sratioaary
2S Traver & Lodging
29 Trade & Businraa -M mbe+"s k-
30 Regulatory Coummission Expo
31 Bad Debt Egknse
32 Mrs _Ilanmus Expense
33 Conriageacy
34 Admarisaative Allocation
35 Sub•T6W UalityFxp�
36 Utility Operating Income
Pl- See Attached Page fur Footnotes
120,388
d
156,300
199.500
�'r,900
246,300
269,700
293.100
1,65I
11651
1.651
1,651
1,651
1,651
1,651
1,810
I'm
1,810
1,310
1.810
1.810
1,810
15,912
15,912
1.5,912
15.91)
15,912
15.912
15,912
2.160
2,160
2.160
:U60
2.160
2,160
2,160
21055
2,055
?,055
'055
2,055
2.055
2055
0
0
0
0
0
0
0
265
265
265
265
265
265
265
0
0
0
0
0
0
0
144,241
180,153
r3,353
246,753
270,153
293,553
316,953
0
0
0
0
0
0
0
144,241
180,153
223.353
246.753
'170.153
293,553
316,953
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9,301
9.301
9.301
9.301
9,301
9,301
9,301
0
0
0
0
0
0
0
180
ISO
ISO
ISO
ISO
I80
I80
4,380
4,380
4,350
4.380
4.380
4M0
4,380
2,m
U77
2,877
2,877
'.879
2,877
Z977
0
0
0
0
0
0
0
4,490
4,490
4.490
4,490
4.490
4,490
4.490
617
617
617
617
617
617
617
5,538
5,538
5.538
5.538
5,538
5,538
5.539
13.200
13,300
13,200
13,200
13,200
13,200
13=
321
321
31-1
3'_1
321
321
321
0
0
0
0
0
0
0
3.522
3S'n
3 22
3,5M
3,5'r?
3,5--
3,S-2
3,561
3,561
3-561
3,561
3,561
3,561
3,561
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
a
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
47,9S7
47.987
47,%7
47,987
47.%'7
47,.987
47,987
96A54
M166
I75,366
198,766
222,166
245,566
268.966
LAKE HILLS UTILITIES, INC.
May 19, 1995
City of Clermont
ATTN: Joe Vanzile, Finance Director
P. 0. Box 120219
Clermont, FL 34712-0219
Dear Joe:
Enclosed is a copy of our May 15, 1995 billing register. Also
enclosed are customer histories on the accounts that have been
activated or closed out since March 30, 1995.
I have highlighted the changes in the deposits between May 2, 1995
and May 15, 1995 billing registers.
Listed below is an explanation of the highlighted accounts.
1. Blue - Accounts that have been activated
or closed out since March 30, 1995.
2. Orange - Customer deposits that have been
rebilled due to the customer making two
late payments within a 12 month period.
3. Green - deposit payments
4. Yellow - Deposits returned for a good payment
record.
5. Pink - Billed deposits on new accounts.
We will be printing a final copy of our billing register on June 15, 1995.
At that time, we will provide you with a copy of the register with an
up to date account of deposits.
If you have any questions regarding the enclosed information, please
do not hesitate to call me.
Sincerely,
Janice D. Layman
Office Manager
JDL:m
enclsure
P.O. Box 915389 • Longwood, Florida 32791 • Telephone (407) 774-8992 • Toll Free 1-800-762-5124
FV1
LAKE HILLS UTILITIES, INC.
May 4, 1995
City of Clermont
ATTN: Joe Vanzile, Finance Director
P.O. Box 120219
Clermont, F1 34712-0219
Re: Sale of Lake Hills Utilities
Dear Mr. Vanzile:
Over the last several days I have had two telephone conversations
with Ms. Sherry Beasley of your staff. The purpose of this
letter is to provide you written documentation of our
discussions.
Attached is a copy of the billing register we used to establish
the amount of customer deposits ($10,280) that we transferred to
you at closing this morning. That was the amount we had received
when the run was made on May 2. An additional $240 had been
billed to customers but not yet received. The customer deposit
is billed to a customer when we send them their first monthly
bill.
We read the meters today and will mail our final bills in mid -
May. After we send those final bills we will provide you a copy
of the billing register. This will allow you to enter the
current meter reads and check the deposit amount by customer
account.
When we print bills our computer will automatically bill new
customers their deposit and refund existing customers their
deposit where appropriate. We will highlight changes in deposit
on each account from that provided on the attachment.
Not later than June 7th we will run a final copy of our billing
register and provide it to you. At this time we will provide an
up to date account of deposits we have collected in addition to
those shown at closing, refunds of deposits shown on the closing
statement and deposits billed but not received. We will include
a check if we owe you additional deposits (above $10,280) or
request payment if refunds drop the deposit balance below the
$10,280 used at closing.
If you have any questions please do not hesitate to telephone me.
Yours very trul
Ha�on C nley
General Manager
Enclosure
P.O. Box 915389 * Longwood, Florida 32791 • Telephone (407) 774-8992 • Toll Free 1-800 762-5124
cc: Bill Beckett, Esquire
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Doty ZU
GOVERNMENT CREDIT CORPORATION
240 E. Intendencia Street
Pensacola, Florida 32501
(904) 434-9955
January 20, 1995
Mr. Joe Van Zile
City of Clermont
One Westgate Plaza
Clermont, Florida 34712-0219
Dear Joe:
P.O. Box 948
Pensacola, Florida 32594
(904) 432-1238 Fax
Thank you for your telephone call. As we promised, we have enclosed a utility application for
the Gulf Breeze Pool. We will be glad to work with you if you decide to access the Pool for
acquisition of the water system and in the future to assist in the construction of the sewer plant.
Please give me a call if you have any questions.
Sincerely,
4SSA---7--
Frank Adams
FA/cb
Enclosure
A Full Financial Service to Local Government
CITY OF GULF BREEZE, FLORIDA
UTILITY LOAN APPLICATION
Please forward one completed original and one copy of this application, along with other
requested documentation to:
Government Credit Corporation
240 E. Intendencia Street
Pensacola, Florida 32501
Submission of this application constitutes permission to share this information as
recorded here or inferences and conclusions based on this or other pertinent data among
parties to this transaction for the purposes of this transaction.
Depending on the nature of the project(s) for which this borrowing request is being made,
and the intended source of repayment, some of the information asked for in this
questionnaire may not be appropriate or relevant. On the other hand, there may be
additional information that the credit facility will require in order to adequately assess the
financial feasibility of a given project that is not included in this questionnaire.
Name of Applicant:
Mailing Address:
Two Contact Persons:
Telephone Number(s)
AMOUNT AND USE OF BORROWING:
Project
Description
Total Amount
of financing
Anticipated Date
of Proceeds
Distribution
Specific Source
of Repayment
Term
(no. of years)
Mode
(fixed or variable)
'Provide a 1 or 2 paragraph summary describing the aspects of each proposed project.
1. ECONOMIC DATA:
A. Employment Data (for the current year and the past 5 years)
Current
19__
19_
19__
19__
19__
Total City
Employment
Unemployment
Rate
Civilian Labor
Force
SOURCE:
2. SYSTEM DATA:
Design Capacity
(MGD)
Average Daily Usage
(MGD)
Peak Daily Usage
(MGD)
Water
Sewer
3. CUSTOMER DATA: PREVIOUS YEARS
Current
19
19
19
19 _
19__
Water
Sewer
B. Water/Sewer Consumption:
Annual Usage -gallons
% Total
Revenues $
% Total
Residential
Industrial
TOTAL
C. Ten largest water and 10 largest sewer customers:
Name
Gallons
Usage
% Total
Revenues ($)
% Total
Water o
Sewer
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
D. Rate Structure (monthly or quarterly bill)
Minimum bill: 1. _ Gallons
2. $/1000 gallons
Connection fees: $ per hook-up
E. Typical residential monthly consumption and bill ($):
F. Is water purchased? If so, how much and what percentage of total system?
What is the cost of purchase?
If a contract is in place, what are the terms of the contract?
4. Financial Statements: Enclose audited financial statements for the past three fiscal years.
5. Compliance:
A. Is the system in compliance with EPA requirements (federal & state))?
B. If not , what steps are being taken to comply?
C. What portion of the capital program outlined below is attributable to complying with the EPA?
6. FIVE YEAR CAPITAL PROGRAM:
Estimated Capital **Funding Sources
*Purpose Requirements Debt Internal Grants
119
119
119
19
19
*Describe Project **Source of Funds
7. FINANCIAL SUMMARY
Previous Years
Current Year 19 19 19
Operating Revenue
(do not include connection
fees & interest income
Net Operating Revenue
line 1 - line 2
Debt Service
Interest
Principal
TOTAL
Debt Service Coverage
Debt Service Coverage
line 3 / line 4
Non -Operating Revenue:
Connection Fees
Interest Income
TOTAL
Year -End Cash Position:
Unrestricted Funds
Restricted Funds
Year -End Cash Position:
Unrestricted Funds
Restricted Funds
Please include two (2) copies each of the documents listed below.
Without these documents, your application is incomplete and must be
delayed until they are received.
1. Financial report for the current year. If not available, end -of -
year statement.
2. Financial reports for previous three (3) years.
3. Official Statements for any amounts to be refunded.
4. Engineer's Report (if applicable) for proposed project.
5. Current Budget adopted.
6. Official Statement of last bond issue pledging the same revenue
source as proposed for loan payment.
*Please include any other documentation which may be of importance
to the loan.
PPIVI
PUBLIC FRTANC[AL MANAGEMI NF, INC.
Finana d and IrBv=ncnt Advisors
$900 Et=pnse- Faticw 7
Fort Myers. FL=905
813-693-1117 (Fax) 813 693-b.3°6-
MEMORANDTJM
To: Joseph Van Zile
City of Clermont
From: Jerry L. Wn �
Public Financial Management, Inc.
Re: Financial Advisory Fees
r
c
January 12, 1995
Enclosed with this memorandum is a revised schedule of fees as they are related to
the issuance of the City of Clermont`s proposed Water and Wastewater Bonds.' The
enclosed schedules also detail the fees proposed by PFM for Investment 4dvisory
Services as well as non -transaction related services such as Capital Planning.
We feel these fees appropriately reflect the level of services necessary for the City
to achieve a successful financing based on our discussions wide you and Mr. Saunders.
PFM is very eager to work for the City and feel that our combination of national, Florida
and Utility System expertise would provide you with services unparalleled by any of our
cornpdtitors.
Please review the schedule and contact me or Lavon if you have . any questions or
comments zegarding our revised proposal.
Thank you again for taking time out of your schedule to meet with the PFM team.
We look forward to working with you in the future.
Atlanta Austin Boston Denver FortMydrs Harrisburg Housm Memphis Minneapolis New York Newport Beach Od=do Phnad4phla Pordand SanF—CL-i
An Atfhate of Marine Midland Bank
CITY OF CLERMONTFLORIDA
TRANSACTION SERVICES FEE
c
For the services outlined in the proposal and presentation related to the issuance of
the City of Clermont's Series 1995 Water and Wastewater Utility Revenue Bonds, PFM
proposes to charge a flat fee of $1.2,500.
CAPITAL PLANNING & POLICY DEVELOPMENT SERVICES
For services not related to the issuance of bonds such as financial planning services,
policy development and financial analysis PFM proposes the following holy rates with
not to exceed amounts negotiated for each particular task. Fees for support staff are
included in the hourly rates for professionals.
Experience Level _ ff ourly Rate
Managing Director $175
Senior Managing Consultant 160
Managing Consultant 150
Consultant 130
Financial Analyst 110
SPECIAL SERVICES
Upon the request of the City, PFM shall provide special studies and./or services
which shall include, but not be limited to, the following:
Impact fee financial analysis
Grantsmansbip
Rate analysis
Management analysis
Referendum assistance
Legislative initiatives
Projtct assessment analysis
Implementation of revenue enhancement programs
Arbitrage and rebate services
Financial analysis of projects being developed by engineer/architect studies
Each special services task will be negotiated in advance with a not -to -exceed amount
and a specific completion date.
-- -- - - - - -- ----------------------------------------------------------------------------------------------
61. 1..- 95 09:58 $813693638.1 PUBLIC FIN MGMT [ jUU
P�VESTMENT MANAGEMENT SERVICES
For services related to investment management, PFM will receive an annual fee of
0.12% (twelve basis points), in monthly instalbnents based on the daily net assets under
management.
EXTENS ES
In addition to the fees described above, PFM would expect to be reimbursed at cost
for travel, meals, lodging, communications, reproduction, computer expenses, graphics,
postage, legal fees, and any other nuscellaneous costs incurred in seiving our clients.
Appropriate documentation and thjrd party receipts will be provided with each invoice.
PFM is very eager to serve the City of ClormonL If any or all paws of this cost
statement prove to be inappropriate or unacceptable to our clients, we will gladly work- to
negotiate a mutually acceptable fee for PFM's services.
0
a
PFM
PUBLIC F s ANCIAL MANACIF.IVIL T, INC.
Financial and tmr=cm Advisors
5000 En=pdse P=kway
Fort Myers. FL 33905
81,3-695-7117 (Fax) 513-693-63M
January 20, 1995
To: Joe Van Zile
City of Clermont
From: Jerry L. Wri2
Public F' al'Manaaement, Inc.
Re: Preliminary Information
In order to get a head start on the work to be accomplished for the City's upcoming
financing, I would like to request the following items:
1. Audited Financial Statements for the years 1990 throw present, including any
partial or un-audited statements for the most recent year.
2. Annual Budgets, if prepared, for the current and past three fiscal years.
3. Any Capital Improvement plans that may have been completed for the Utility
System_
4. Preliminary Engineering reports or Preliminary Feasibility Studies prepared for the
Utility System Expansion,
5_ Outstanding Bond Indentures or Resolutions for any UtlTty System Debtor
Debenture which encumbers Utility System Revenues.
This information should allow us to begin analyzing the City's Utility System and
prepare a Preliminary Financing Alternatives paper and Preliminary Plan of Finance.
Also, I would like to speak with you regarding the agenda for Monday morning's
meeting..
I would like to thank you again for selecting PFM as the City of Clermonfs financial
advisor. We are excited to be a part of the team and look forward to a successful
financing for you Utility System. If at any time I or may Firm may be of service, please
contact me at 813 /693-7117.
ANama Anson Boswa Owvrs Fomt%tyem Hauisbwz Houswn Memphis MmncapoGs New Yorli Nc WmBcach Odando PhOadelphia Potdand San Fran
An Affiliate of Marine Midland Bank
S yfi� r1
f71
d
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F
PFM
P[JBIJC RNANCIAL MANAGFAnvr, INC.
Financial and Investment Advisors
5900 Enterprise Parkway
Fort Myers, FL 33905
813-693-7117 (Fax) 813-693-6384
Mr. Joseph Cone, County Administrator
Marion County
P.O. Box 1030
Ocala, Florida 32681-1030
Dear Joe:
'9�5 -Oo1
L!� 110117 3
June 10, 1993
Per the request of the Board of County Commissioners (the 'Board") on June 1, 1993,
Public Financial Management, Inc. ( PFM) submits the attached defined tasks to perform
an acquisition analysis for the Silver Springs Shores Division of the General Development
Utilities System. Our proposal defines eight tasks which would be provided on an hourly
basis as per the attached.
I would be happy to meet with the Board or any staff to review the tasks outlined.
Please feel free to contact me at your convenience.
Attachments
Sincerely,
PUBLIC FINANCIAL MANAGEMENT, INC.
Lavon Wisher
Managing Director
Atlanta Fort Nlyers Harrisburg Memphis
(491 An Affiliate of Marine Midland Bank, N.A.
New York Orlando Philadelphia San Francisco State College `
Services related to the Financial Planning and Policy Development
Proposed Tasks - Acquisition
TASK 1: Discuss and Provide Alternatives for Acquisition Policies.
Following the review of data on the current financial and legal
situation in Marion County and surrounding areas, PFM would
provide the County with numerous alternative policies regarding the
acquisition. Upon the adoptions of a policy or policies, PFM would
develop a framework to guide the working group in formulation of
all necessary documents.
TASK 2: Review and Assess the Current Financial Information Working
in conjunction with the County Staff and consulting Engineers, and
other consultants, PFM will review all financial statements, rate
information, operating and maintenance statements to assess the
current finances of the Utilities that may be acquired.
TASK 3: Analyze Financial and Economic Factors. Following the review
of current financial information, PFM will assess impact of current
and future contractual obligations, impact on rates, potential for
future growth, developer agreements, accounts receivable and
payable, review outstanding liens and encumbrances and other
economic factors that will impact the System.
TASK 4: Formulate a Net Revenue Base and a Purchase Price. PFM in
conjunction with other team members will develop assumptions
regarding operations under ownership by County and develop a
conversion of Revenue and Operations & Maintenance. Then PFM
would analyze the debt capacity for the formulation of a base
purchase price.
TASK 5: Capital Improvement Plan. PFM will develop a short/long term
Capital Improvement Plan utilizing existing capacity and projection
of future expansions.
TASK 6: Methods of Financing. PFM will provide the County with
alternative methods of financing with will include but not be limited
to: (i) user fees, (ii) State Revolving Loan Fund Program, (iii) impact
or connection fees, (iv).developer contributions (v) assessments, (vi)
grants and other low interest loans, (vii) owners bonds, (viii) futures
bonds, and (ix) revenue bonds.
TASK 7: Develop a Plan of Finance. Utilizing the financial analysis and the
base purchase price, PFM will provide the County with alternative
financing plans with a recommendation as the Plan of Finance in the
best interest of the County and their customers.
TASK 8: Attend any Working Group Meetings, County Meetings and
conduct Public Information Meetings. In addition to attending all
working group meetings and necessary County meetings, PFM will
conduct Public Information Meetings to explain the entire
acquisition process, in layman's terms to the public.
PFM's hourly fees as per contract. Based upon services rendered in other
acquisition projects, we estimate the outlined tasks will cost approximately
$45,000.
Please note: Tasks do not include formulation of rates, direct negotiation
for utility acquisition and transaction related functions.
Public Financial Management, Inc.
MARION COUNTY, FLORIDA
PROGRESS REPORT ON THE PROPOSED
ACQUISITION OF SILVER SPRING SHORES
August 30,1993
Public Financial Management, Inc.
5900 Enterprise Parkway
Fort Myers, FL 33905
Atlanta, Austin, Boston, Denver, Fort Myers, Harrisburg, Houston, Ins Angeles, Memphis, New York, Orlando, Philadelphia, Portland, San Francisco
MARION COUNTY, FLORIDA
UTILITY ACQUISITION
Working Group Distribution List
Marion County Courthouse
Frances Thigpin
Clerk, Circuit Court
Thomas P. Klinker
Marion County
Joseph L. Cone
County Administrator
Gordon Johnston, Esquire
County Attorney
Financial Advisor
Rick Patterson
Managing Consultant
Lavon Wisher
Managing Director
Stacey Donnelly
Managing Consultant
Consulting Engineer
Marc P. Walch
110 N.W. 1st Avenue
Ocala, FL 34475
(904) 620-3904
(904) 620-3300/FAX
(904)620-3980
(904) 620-3833/FAX
601 S.E. 25th Street
Ocala, FL 32671
(904) 620-3340
(904) 620-3344/FAX
(904) 620-3330
(904) 620-3790/FAX
Public Financial Managment
Barnett Plaza, Suite 720
201 South Orange Avenue
Orlando, FL 32801
(407) 648-2208
(407) 648-1323/FAX
Public Financial Management
5900 Enterprise Parkway
Fort Myers, FL 33905
(813) 693-7117
(813) 693-6384/FAX
Post Buckley Schuh & Jernigan
1560 Orange Avenue, Suite 700
Winter Park, FL 32789
(407) 647-7275
(407) 647-0624/FAX
MARION COUNTY, FLORIDA
PRELIMINARY COMPREHENSIVE
UTILITY ACQUISITION ANALYSIS
TIMETABLE
JULY
1993
S
M
T
W
T
F
S
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
AUGUST
1993
S
M
T
W
T
F
S
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
SEPTEMBER
1993
S
M
T
W
T
F
S
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
DATE EVENT
Week of July 26th Data Collection and Project Initiation
(Engineer's Task #1)
PARTICIPANTS
County, FA,
EN
Week of August 2nd Formulate alternatives for Acquisition
Policies (FA's Task #1) FA
Begin Preliminary Financial Analysis
(FA's & Engineers Task #5) FA
August 9, 1993 Meeting with County Administrator to discuss
alternatives for Acquisition Policies FA
August 11 th - 13th Review and assess financial and economic
factors (FA's Task #1) FA
Finalize Acquisition Policies (FA's Task #1) County, FA
Week of August 16th Conference Call with Working Group All
Existing Facility and Inventory & Analysis
(Engineer's Task #2) (Scheduled August 19th) EN
Review Permitting (Engineer's Task #4) EN
Continue Financial Analysis and Begin FA, EN
Draft Plan of Finance (FA's Task #5)
Begin Financial Valuation of the System
(Engineer's Task #6) EN
Week of August 23rd Conference Call with Working Group All
Provide a List of Corrective Improvements
and Costs (Engineer's Task #3) EN
Collect and Analyze data for the Formulation
of Net Revenue Base and Purchase Price
(FA's Task #6) FA
Conference Call with Working Group All
August 30, 1993 Meetings with Individual Commissioners
FA
August 31, 1993 Workshop #1
Discussion of Policies and Update Board
EN, FA
Week of August 30th Draft Financial Analysis
FA, EN
(FA's & Engineer's Task #5)
Draft Net Revenue Base and Preliminary
Purchase Price (FA's Task #6)
FA
Draft Financial Valuation of the System
(Engineer's Task #6)
EN
Begin Assembling Financing Methods and
Implementation
(Engineer's Task #7)
EN
Distribute a Draft Plan of Finance
(FA's Task #7)
FA
Week of Sept. 7th Conference Call with Working Group All
Complete Financing Methods and
Implementation
(Engineer's Task #7) EN
Develop a Final Plan of Finance
(FA's Task #7) FA
September 14, 1993 Workshop #2
Discussion of Findings to Date, Draft
Plan of Finance All
Week of Sept. 14th Conference Call with Working Group All
Draft Conclusions and Recommendations
(Engineer's Task #R) EN, FA
Sept. 16, 1993 Final Report to the Commission for Agenda EN, FA
packet
Sept. 21, 1993
LEGEND:
County
FA
EN
Final N,Vorkshop to Present Conclusions County, EN,
FA
Marion County, Florida
Financial Advisor: Public Financial Management, Inc.
Consulting Engineers: Post, Buckley, Schuh & Jernigan, Inc.
7- Y
UTILITY ACQUISITION[ POLICIES
Introduction
A formalized set of agreed upon acquisition policies are critical to a successful
acquisition of a water and wastewater utility. These policies will govern the manner in
which the acquisition team will proceed through all the tasks involved in determining the
best manner in which the County should proceed. Public Financial Management, Inc.
("PFM") has outlined some suggested policies for the County to consider.
POLICIES
Governing Structure
Should the County elect to purchase there are a varity of different governing
structures the County may select. The governing body will have the duties of rate setting,
budget setting and development of expansion policies. Below are some of the governing
structures the County may establish for a utility.
County Department
Special District
-- Dependent
-- Independent
Special Authority
-- Dependent
-- Independent
Based on discussion with the County Staff, PFM will provide an analysis of the
options listed above and provide information on the advantages and disadvantages of each.
Operations
Should the County elect to purchase there are many operational decisions the County
must make:
Type of Operations
• County Department with Employees being County Employees
• Private Management (Management Contract with Private Company) - Must
be short term no longer than five (5) years.
Accounting of Operations
• County Enterprise Fund
• County Special Revenue Fund
• Special District Enterprise Fund
• Special Authority Enterprise Fund
-T- 1
Charges to the Operation
• Administrative Allocation
Capital Expansion
Charges for Expansion
• Connection Charges
• Assessements
Collection of Chartres for Expansion
• Connection Charges
-- At time of Connection
-- On Water and Sewer Bill
• Assessements
-- On Tax Bill
-- On Water and Sewer Bill
-- As a seperate billing
Determination of Purchase Price
Calculation of Net Revenue
• Rates prior to recent increase
• Current rates
• Cost decrease (increase)
Ownership
• Future Capactiy
associated with operations under County
Funds withheld from Bonding, Capactiy
• Required Improvement to the utility system to insure County Standards
• All costs associated with the Acquisition
• All costs associated with the financing
Payment to Owner
• Cash
• Owner's Bonds
• Future Bonds
-2-
--V 0Z
Issues for Meeting on 8/26/93
Revenue
• Discrepancies (see attached exhibits 1 & 2)
• Rates
-- Approved by Public Service Commission (PSC)
-- 85% of Requested Rates
-- Requested Rates
Expenses
• Discrepancies (see attached exhibits 3 to 5)
• Adjustments (partially complete)
Items Not Included in Debt Service Analysis
• Transition Costs
• Acquisition Costs
• Cost of Issuance (GDU low)
Management
• Complete Public (either County or Authority)
• Partial Public (Employee on County payroll managed by existing GDU
staff)
• Complete GDU Contract
• Other Private Contract (Lynn Taber)
• Combination of one of any of the above
Additional Security
• Assessments
• Stand-by Fees
• Increase Rates
-I - 71J--I
Structuring to Increase Acquisition Proceeds
• Futures**
• Owners Bonds
• Subordinated Debt
• Subordinated Futures**
** PFM would not recommend long term Futures.
-2- �-z
Sch Wile of Actual Wafer 8111s and Consumption
At Hstet Current Conserlration Rate Levels
Corn pany;GDU18fhrer Sprites Shares - Water
Docket No, 92a733-W5
Test Year Ended: Decemtrur 31, 1S92
(3)
(4)
Actlel 12/31192
Line
t4srlber
Consumption
Present
No.
ClassO&ter Size
Bills
in MG
Rate
1
Reslcantiai
-
--~
2
SO x 314'
40 AS6
$ 724
3
1st19,000 gals
225,024
1D4
4
Carer 19,000 gals
22,191
1.13
5
1'
12
18.09
6
1 st 24,(;W gals
81
1 A4
7
Over 24,007 gals
0
1.13
8
1staM3 gals
Nd
9
Over 6,WO
rva
10
CcinsuvatIon gallons (91% rate Intrflasa In wor 0,000
WI. - 9.1% conscxva4on
11
-------•
--------
12
Total ResIc iial
40.858
247z96
13
14
General :rrvice (Coimcarcial)
15
15410'x3)4'
844
$ 724
16
1'
336
18109
17
1 M.
/2
3621
18
2'
306
5721
19
3'
24
1534
20
4•
60
18101
21
MCall ans
47412
$ 1A4
22
-------•
--------
23
Total Commazlal
t ae2
47,412
24
r,
25
General Service (Multi -Family)
26
5/8' x 391
12
724
27
1'
96
18D9
28
2•
144
57.91
- - _
_ Fie ca-Iticm
4,471
$ 1.04
30
- -
-------•
--------
31
Tur,)t Multi -Family
252
4471
32
-
33
Aurago Hill
34
35
Private Fire Protecten
36
6'
6
w 1 A09.66
37
8'
9
1 �6 14.19
38
-------•
--------
39
Total PrWate Fire R-tnec.
15
0
40
41
42
Tot315
42,717
299.179
43
==_====:
==-=-=-
p
Revenues at'
Present Rates
------------
$ 295,797
234,025
25 Q76
217
84
0
nta
noa
-------------
$ 555,199
$ 6,111
6,078
435
17,720
2,780
10A61
49.308
-------------
$ 93793
=c=is.ascr==-�3
87
1,737
8.339
4.650
ffi 14,813
S 58.78
S 6.058
14.528
-------------
$ M5s6
$ CMr691
(6)
Actual 12I81 /92
Conswption
In MG
150,335
96,961
@'823)
236,473
ca=:c=�cxiaaz
(7)
V)
85% of
Raven as at
Requested
B5%olRe-
Rate
quested Rates
8.13
332,159
2033
092
138
138
8.13
20 33
4035
65.03
130.07
20323
47,412
1 A8
---- 47_412a
8.13
2033
65A3
4,471
1 De
244
138,308
133,806
(12,176)
$ 592,341
6
6A31
408
19A99
3,122
12,194
51,205
$ 100,600
caeca===:
98
1 A2
9,364
4,829
4471 S 16,242
1625A0 9,750
26o0.00 23,400
$ 33,150
-w=====
290,356 $ 742.334
==SSL� �=GSti=xi
0)
Final
Rate
7A9
19.73
0,89
134
134
7.89
19.73
39.45
63,12
12624
19725
1D5
7 89
19.73
63.12
1.05
(10)
Revenues at
Final Rates
322 P54
237
133,796
129�328
(11,823)
$ 574,493
6 A59
6,629
473
19,315
3,030
111835
49,783
$ 97.724
95
1,894
9D89
4 A95
15,773
1,578.00 9,468
2,524.00 22,716
$ 32,184
7210,174
I
Schodule of Actual Sower Bills and Consumption
at 1 OADO B1s "xlmum Residential Bill
Company:GDU/Silver Springs Shores - Sewer
Dadcet No. 920733-WS
TostYoar Ended: Deoernber 31, 1992
(t}
(2)
(3)
(4)
(�
Actual 12/31 M
Line
Number
Consumption
Present
Revenuesat
No. C:lass(MeterSize
Bills
In MG
Rote
f'rosentMies
1 Residential
2 Base Facility Charge
40,826
$
17.88 S
730,005
3 All motor Siz06
4 Gatlonage-Akaximum 10 MG
190,193 S
2.09
397,503
5 Over 10 MG
67,071
6 Gallonage-fdka>amurn 8 MG
7 O✓Or8 MG
8
9
Tail RosidortUal
40,828
247,264
11
12
General Servloe (Commerdal)
13
5R3' x 314'
534
$
14
1'
278
15
1 1/2'
12
16
2'
160
17
3'
12
18,
4'
48
19
M Gallms
33,033 $
21
-�-------
--------
21
22
TotalCommorclal
1,044
=_-==_-i
33,033
===._=--
23 GentralSevioa (Mulll-Femil y)
24 5/e' x3(4'
25 1'
26 2'
27 M Galims
28 - -
29 7oml Multi -Family
30
31
32
96
144
4,460
240 4,460
_-_--_ 5 1,127,508
(6)
(7)
(0)
Actua.l12131/92
85%01
Revenues at
Consumption
Requested
85% of Re -
In MG
Rate
quemdRatss
15.09
616,095
173,742
3.10
538,600
73,522
247,264
$ 1,154,695
17,68 $
9,548
44.69
12,424
89.37
1.072
142.98
22,877
285.95
3,431
446.60
21,446
2.52
83,244
33,033
S
154 042
33033
0.00
17.88
0
44.69 $
4.290
142.98
2:0,589
2.52
11,240
4,471
$
36119
4.471
Totals 42,112-284,757 $ 1,317,669 i '284.768
15.09
6,0W
37.73
10,469
75.45
905
120.73
19,317
241.45
2,897
37727
18,109
3.72
122,863
$
182,658
15.09 0
37.73 3,622
120.73 17 „385
3.72 16,632
$ 1,374,992
(9)
I
r'.
' 1
r
Final
(10)
Revenues at
Final Rates
5t73,001
S 1,122,629
a
Silver Springs Shores
Cash Flow Analysis
Includes 50% of Standby Fees
Rate Covenant - 1.10x Coverage
PSC Approved Rate Increase
ERCs
Water
4,056
Sewer
3,875
Total ERCs
7,931
Revenues
Water Sales
705,224�
Wastewater Sales
1,129,621
Interest Income
75,000
Standby Fees (50%) 182,811
91,406
Miscellaneous Revenue
38,436 J/
Total Revenues
2,039,687
Expenses
Salaries
229,262
Employee Benefits
37,658
Payroll Taxes
29,363
Power Purchased
102,771
Chemicals
2,084
Materials and Supplies
157,510
Maintenance - Labor
68,898
Maintenance - Expense
122,000
Professional Services
1,950
Management Fees
182.999
Transportation
_
26,565
Insurance
61,704
Bad Debts
22,442
Other Expenses
9,125
Total Expenses
1,054,331
Net Available for Debt Service
985,356
before Connection Fees and Standby Charges (50%)
Debt Service Coverage
1.10
Debt Service
895,778
Additional Revenues
Connection Fees
36,600
AFPI
51,065
Standby Charges (50%)
91,406
Total Additional Revenues
128,006
Net Available for Debt Service
including Connection Fees and Standby Charges (50%)
1,113,361
Debt Service Coverage
including Connection Fees and Standby Charges (50%)
1.24
Surplus/(Deficit) page 1
217,583 1� ,J
Marion Count, utility
Projection of Operations. ip
for the Following Periods
12 Months
12 Months
12 Months
12 Months
12 Months
12 Months
12 Months
Ended
Ended
Ended
Ended
Ended
Ended
Ended
12/31 /92
9/30/93
9/30/94
9/30/95
9/30/96
9/30/97
9/30/98
ERC's (Average for year) 0 )
Water
4,033
4,043
4,226
4,437
4,659
4,892
5,137
Sewer
3,854
3,862
4,040
4,242
4,454
4,677
4,911
Gross Operating Revenues p)
Water
$
474,261
$
663,685
$
929,720
$
1,005,424
$
1,055,729
$
1,108,527
$
1,164,044
Sewer
855,289
1,296,911
1,700,840
1,839,458
1,931,388
2,028,088
2,129,557
$
1,329,550
$
1,960,596
$
2,630,560
$
2,844,882
$
2,987,117
$
3,136,615
$
3,293,601
Expenses (3)
Salaries
$
321,788
$
377,202
$
388,518
$
400,174
$
412,179
$
424,544
$
437,280
Employee benefits
38,642
42,312
43,581
44,888
46,235
47,622
49,051
Payroll taxes
23,169
32,267
33,234
34,231
35,258
36,316
37,405
Power purchased
101,209
102,771
111,147
120,205
130,002
140,597
152,056
Chemicals
959
2,084
2,254
2,438
2,637
2,852
3,084
Materials & supplies
258,386
279,510
302,290
326,927
353,572
382,388
413,553
Professional services
318
1,950
2,109
2,281
2,467
2,668
2,885
Management fees (4)
85,000
180,000
185,400
190,962
196,691
202,592
208,670
Transportation
27,006
26,565
28,730
31,071
33,603
36,342
39,304
Insurances
49,019
61,704
66,733
72,172
78,054
84,415
91,295
�.
Bad debts
17,659
22,442
24,271
26,249
28,388
30,702
33,204
"
Other expenses
767
9,125
9,869
10,673
11,543
12,484
13,501
_
$
923,922
$
1,137,932
$
1,198,136
$
1,262,271
$
1,330,629
$
1,403,522
$
1,481,288
S
Cash flow from operations
$
405,628
$
822,665
$
1,432,424
$
1,582,611
$
1,656,488
$
1,733,093
$
1,812,313
LLB
CAPITALIZED INCOME FROM
OPERATIONS (6.5%)
$ 25,800,525 $
N/A
$
822,665
$
1,344,999
$
1,395,324
$
1,371,322
$
1,347,173
$
1,322,773
Guaranteed Rev./Stand-by fees
$
$
$
$
$
$
$
Connection Charges (Pledged) (5)
13,544
37,467
458,818
523,242
549,572
368,078
193,564
Interest Income
$
13,544
$
37,467
$
458,818
$
523,242
$
549,572
$
368,078
$
193,564
CAPITALIZED INCOME FROM
OTHER CHARGES
$ 2,156,653 $
N/A
$
37,467
$
430,815
$
461,321
$
454,963
$
286,116
$
141,279
TOTAL CAP ITALIZED INCOME
$ 27,951,178
(1) ERC's increased by 5% annually.
(2) Average revenue per ERC requested in MFR's, Increased by 3% each year commencing In 1995.
(3) Expenses increased by 3% inflation and 5% customer growth each year, except salaries, benefits,
payroll taxes, and managment fees, which are Increased only by 3% inflation.
(4) Includes management fees and administrative expenses.
(5) Limited to available capacity
Silver Springs Shores
Operating Statements
of General Development Utilities, Inc.
Projected 12
Months Ended September 30, 1993
FPSC Approved
12 Months
12 Months
Adjusted
Ended
Ended
12 Months Ended
12/31/92
9/30/93
Adjustments
Ref
9/30193
ERC's (Average for year)
Water
4,033
4,043
! 13
(1)
4,056
Sewer
3,854
3,662
13
(1)
3,875
Gross Operating Revenues
Customer revenues - Water
$
443,154
540.416
164,806
(2)
705,224
Customer revenues - Wastewater
855,289
1.109,421
20,200
(2)
1,129,621
Service Charges
31,107
38,436
38,436
$
1,329,550
1,688,273
185,068
1,873.281
Expenses
Salaries - Operations, G&A
$
263,012
308,304
(79.042)
(3)
229,262
Employee benefits
38,642
42,312
(4,654)
(4)
37,658
Payroll taxes
23,169
32,267
(2,904)
(5)
29,363
Power purchased
101209
102,771
102,771
Chemicals
959
2,084
2,084
Materials & supplies
145,606
157,510
157,510
Professional services
318
1,950
1,950
Management fees
85,000
180,000
102,999
(6)
282,999
Transportation
27,006
26,565
26,565
Insurances
49,019
61,704
61,704
Bad debts
17,659
22,442
22,442
Other expenses
767
9,125
9,125
Maintenance - Labor
58,776
68,898
68,898
Maintenance - Expense
112,780
122,000
122,000
$
923,922
1,137,932
16,399
1,154,331
Net Available for Debt Service
Before OtherSources
$
405,628
550,341
168,609
718,950
Fees for utility Lines
217.094
(7)
217.094
AFPI
$
13,544
37,467
13,598
(8)
51,065
Connection Charges (pledged)
11,747
36,600
36,600
Net Available for Debt Service
$
25,291
74,067
230,692
304,759
1,166,095
�xhI b.I-+ S#--
� S
Silver Springs Shores
Cash Flow Analysis
Includes 50% of Standby Fees
Rate Covenant - 1.1 Ox Coverage
PSC Approved Rate Increase
ERCs
Water
4,056
Sewer
3,875
Total ERCs
7,931
Revenues
Water Sales
705,224�
Wastewater Sales
1,129,621
Interest Income
75,000
Standby Fees (50%) 182,811
91,406 /
Miscellaneous Revenue
38,436./
Total Revenues
2,039,687
Expenses
Salaries
229,262
Employee Benefits
37,658
Payroll Taxes
29,363
Power Purchased
102,771
Chemicals
2,084
Materials and Supplies
157,510
Maintenance - Labor
68,898
Maintenance - Expense
122,000
Professional Services
1,950
Management Fees
1.82,999
Transportation
- 26,565
Insurance
61,704
Bad Debts
22,442
Other Expenses
9,125
Total Expenses
1,054,331
Net Available for Debt Service
985,356
before Connection Fees and Standby Charges (50%)
Debt Service Coverage
1.10
Debt Service
895,778
Additional Revenues
Connection Fees 36,600
AFPI 51,065
Standby Charges (50%) 91,406
Total Additional Revenues 128,006
Net Available for Debt Service
including Connection Fees and Standby Charges (50%) 1,113,361
Debt Service Coverage
including Connection Fees and Standby Charges (50%) 1.24
Surplus/(Deficit) Page 1 217,583
EDRAFT
For ftcusslc
Purposes Only
SILVER SPRINGS SHORES - HISTORICAL FINANCIAL AND CONVERSION TO COUNTY OWNERSHIP
Line
No. Description
Operating Revenues
1 Water
2 Sewer
3 Misc. Revenue
4 Interest Income
5 Total Operating Revenues
Operating Expenses
6 Salaries and Wages - Employees
7 Salaries and Wages - Officers, Directors
and Majority Stockholders
8 Employee Pensions and Benefits
9 Payroll Taxes
10 Purchased Water/SewageTreatment
11 Sludge Removal Expense
12 Purchased Power
13 Fuel for Power Purchased
14 Chemicals
15 Materials and Supplies
16 Maintenance - Labor
17 Maintenance - Expense
Contractual Services
18 Engineering
19 Accounting
20 Legal
21 Management Fees
22 Other
23 Rental Building/Real Property
24 Rental Equipment
25 Transportation Expense
Insurance
26 Vehicle
27 General Liability
28 Workman's Compensation
29 Other
30 Advertising Expense
Regulatory Commission Expenses
31 Amortization of Rate Case Expense
32 Other
33 Bad Debt Expense
34 Miscellaneous Expense
35 Contingency
36 Administrative Allocation
37 Sub -Total Utility Expense
38 Utility Operating Income
Please See Attached Page for Footnotes
GDU Adjusted
GDU Adjusted
1990
1991
1992
12 Months
County
Total Water & Sewer
Actual
Actual
Actual
Ending 9/30/93
Adjustments
Under County Ownership
457,357
492,093
481,794
742,000
(36.776)
(1)
705.224
828,858
874264
861,3W
1,375,000
(245.379)
(1)
1,129,621
38,436
(9,141)
(2)
29,295
75,000
0
(3)
75,000
1,286,215 1,366,357 1,343,094 2,230,436 (291.296) 1,939,140
304,160
376,420
321,788
229.262
45,794 (4)
275,056
0
0
0
0
0
0
49,006
49,497
38,642
37,883
0 (5)
37.893
0
0
0
26.192
0 (5)
26,192
0
0
0
0
0
0
0
0
0
0
0
0
113,%7
122,558
1012N
102.771
0 (6)
102.771
0
0
0
0
0
0
-950
6,289
959
2,094
0 (7)
2,094
156,386
162,871
258,386
62,051
0 (8)
62,051
0
0
0
68,898
(45.794)
23,104
0
0
0
122,000
0
122,000
0
0
0
0
0 (9)
0
3,574
0
0
0
10,000 (10)
10,000
6,216
605
186
0
7,125 (11)
0
60,155
79,467
85,000
394,906
0 (12)
180,000
1,225
0
132
1,950
0 (13)
1,950
0
0
0
0
0
0
0
0
0
0
0
0
25,759
26,496
27,006
26.565
0 (14)
26,565
0
0
0
0
0 (15)
0
0
0
0
0
0 (16)
0
60,153
34,288
37,982
38,779
(38,779) (17)
0
38,064
41,647
11,037
19,423
0 (18)
19,423
0
0
0
0
0
0
41,016
41,016
7,338
0
0 (19)
0
0
467
0
0
0 (20)
0
8,923
17,035
17,659
22,442
0 (21)
22,442
2,341
3,300
767
9,125
0 (22)
9,125
0
0
0
0
46,032 (23)
46,032
0
0
0
0
46,032 (24)
46,032
869,995
961,946
908,091
1,154,331
(141,620)
1,012,711
416,220
404,411
435,003
1,076,105
(149,676)
926,429
Jy -(
Pat
SILVER SPRINGS SHORES �"es�'G
anly„
HISTORICAL FINANCIAL AND CONVERSION
TO COUNTY OWNERSHIP
(1) Adjusted to reflect approved rates.
(2) The following was provided as a breakdown of the miscellaneous revenue:
Fire Service 22,605
Perry Lease Agreement 6,690
TOTAL 29,295
(3) Change to reflect (i) annual debt service reserve earnings based on the yield of a 5 year
treasury
Estimated Debt Service Reserve Fund
Estimated Earnings Rate
Annual Debt Service Reserve Earnings
Estimated Sinking Fund Balance
Estimated Earning Rate
Annual Sinking Fund Earnings
TOTAL EARNINGS
(4) Reclassified from Maintenance - Labor to Salaries
(5) Thomas Klinker, County Finance Director is reviewing the employees' positions and
will provide the cost of the fringe benefits.
(6) PBS&J is reviewing this amount and will provide any adjustments.
(7) PBS&J is reviewing this amount and will provide any adjustments.
(8) PBS&J is reviewing this amount and will provide any adjustments.
(9) PBS&J is reviewing this amount and will provide any adjustments.
(10) Thomas Klinker, County Finance Director provided estimate.
(11) Estimate based on a similar size system.
(12) Charles Fancher to provide detailed breakdown for analysis.
(13)
(14) Assumes the continued trend in the cost of maintaining a rental fleet.
(15) Will require County's Risk Manager to review.
-1-
ftr0
(16) Will require County's Risk Manager to review.
(17) The County catagories this with the employee benefits.
(18) Charles Fancher to provide detailed breakdown.
(19) Assumes no Regulatory Commission Expenses under County ownership.
(20) Assumes no Regulatory Commission Expenses under County ownership.
(21) Assumes the continued trend for bad debt expenses.
(22) PBS&J is reviewing this amount and will provide any adjustments.
(23) Assumes the County will charge the enterprise fund for the services of: (i) County
Administration, (ii) Purchasing, (iii) Finance, etc. This is assumed to be 5% of the
systems total expenses.
(24) Assumes the Enterprise Fund will have a contingency based on the County's current
policy of 5% to 7% per fund. Information provided by Thomas Klinker, County
Finance Director.
-2- IT -
EXAMPLES
BASED ON GDU REVENUE AND EXPENSES
Example 1: Based on GDU's projection of revenue and expenses used in their debt
capacity run with the approved rates. Using 50% of the Stand-by Fees.
Assumes interest rates based on current market conditions.
Amount available for acquisition $10,296,827
(The cost for system improvements would be deducted)
Example 2: Based on GDU's projection of revenue and expenses used in their debt
capacity run with the approved rates. Using NO Stand-by Fees. Assumes
interest rates based on current market conditions.
Amount available for acquisition and improvements $9,189,489
(The cost for system improvements would be deducted)
Example 3: Based on GDU's projection of revenue and expenses used in their debt
capacity run with the approved rates. Using 50% of the Stand-by Fees.
Assumes interest rates based on current market conditions and assuming the
owner would accept a partial cash payment and owner parity bonds.
Cash $4,740,423
Bonds to Owner 6,055,000
Amount available for acquisition $10,795,423
(The cost for system improvements would be deducted)
Example 4: Based on GDU's projection of revenue and expenses used in their debt
capacity run with the approved rates. Using 50% of the Stand-by Fees.
Assumes interest rates based on current market conditions and assuming the
owner would accept a partial cash payment and owner subordinate bonds.
Cash $4,740,423
Bonds to Owner 7,260,000
TOTAL available for acquisition $12,000,423
(The cost for system improvements would be deducted)
Please Note: Examples 3 & 4 use the same rates a publicly offered bonds to illustrate the
benefit of owner's bonds, however, owner's bonds may be structures with a higher
interest and lower principal for tax purposes.
�f
MARION COUNTY, FLORIDA
Water and Sewer Revenue Bonds, Series 1993
Sources and Uses of Funds
BASED ON GDU's PROJECTIONS FOR REVENUE AND EXPENSES USED IN DEBT CAPACITY
USING 50% OF STAND BY FEES "
Sources of Funds
Par Amount of Bonds 12,180,000.00
Accrued Interest 0.00
Original Issue Discount 0.00
Taal 12,180,000.00
Uses of Funds
Amount Available for Acquisition
10,296,827.27
System Ir provements
0.00
Transition Costs (A)
250,000.00
Acquisition Costs (B)
300,000.00
Accrued Interest
0.00
Debt Service Reserve Fund
837.552.50
Capitalized Interest (C)
0.00
Underwriters Discount
1.200% 146,160.00
Cost of Issuance
200,000.00
Bond Insurance
0.600% 149,460.23
Contingency
0.00
Total 12,180,000.00
(A) Estimate based on a recent acquisiton by a County starting In the Utility business
(8) Estimate based on a recent aoquisiton by a County starting in the Utility business
(C) May Require Capitalized Interest in the future for structuring
Assumptions
1) The deposit for aoquisiton and construction is the remaining proceeds.
2) Cost of Issuance is estimated as $200,000.
3) Underwriter's Discount is estimated as $12.00 per $1,000
4) Bond insurance is estimated as the greater of 0.60% of total debt service or $35,000.
5) The County will fund a debt service reserve.
6) The dated date is 12/1/93.
7) The delivery date is 12/1/93.
8) RATES: Assumed De(phis Hanover 94 for August 19, 1993.
9) System improvements will be deducted from the amount available for acquisiton.
Coverage:
Net Revenue (please see attached) 985,356
R & R Requirement (5% previous years gross rev.) 66,478
Net Available for Debt 918.879
Maximum Annual Debt 837.553
Coverage Factor 1.10
Coverage Amount 81,326
Other Requirements
Captial Outlay 0
Transfer to General Fund 0
End Balance 81,326
"BASED ON INFORMATION SUBMITTED BY GDU (NOT VERIFIED BY PFK
Prepared by PF.M
824/93
MARION COUNTY, FLORIDA
Water and Sewer Revenue Bonds, Series 1993
Debt Service Schedule
BASED ON GDU's PROJECTIONS FOR REVENUE AND EXPENSES USED IN DEBT CAPACITY
USING 50% OF STAND BY FEES ••
Capitalized
Net Debt
Date Principal
Coupon'
Yield
Price
Proceeds
Interest
Debt Service
Annual
Interest
Service
05/01/94
223,785.59
223,785.59
0.00
11/01/94
190,000.00
2.800
2800
100.000
190,000.00
268,542.71
458,542.71
682,328.30
0.00
682,328.30
05/01/95
319.591.25
319,59125
11/01/95
195,000.00
3.400
3.400
100.000
195,000.00
319,591.25
514,59125
834,18250
834,18250
05/01/96
316,276.25
316,276.25
11/01/96
205,000.00
3.800
3.800
100.000
205,000.00
316,276.25
521.276.25
837,552-50
837.55250
05/01/97
312,381.25
312,38125
11/01/97
210,000.00
4.050
4.050
100.000
210,000.00
312.381.25
522,38125
834,76250
834.762-50
05/01/98
308,128.75
308,128.75
11/ot/98
220,000.00
4.250
4.250
100.000
220,000.00
308,128.75
528,128.75
836,257.50
836,257.50
05/01/99
303,453.75
303,453.75
11/01/99
230,000.00
4.450
4.450
100.000
230,000.00
303,453.75
533.453.75
836,907.50
836,907.50
05/O1/00
298,33625
298,336.25
11/01/00
240,000.00
4.600
4.600
100.000
240,000.00
298,336.25
538,336.25
836,67250
836,67250
05/01/01
292,81625
292,816.25
11/01/01
250,000.00
4.700
4.700
100.000
250,000.00
292,816.25
542,816.25
835,63250
835,63250
05/01/02
296,941.25
286,941.25
11/01/02
260,000.00
4.800
4.800
100.000
260,000.00
286,94125
546,941.25
833,882.50
833,88250
05/01/03
2B0,70125
280.70125
11/01/03
275.000.00
4.900
4.900
100.000
275,000.00
290,70125
555.701.25
836,40250
836.40250
05/01/04
273.963.75
273,963.75
11/01/04
285,000.00
5.000
5,000
100.000
285.000.00
273,963.75
558,963.75
832,927.50
832,927.50
05/01/05
266,838.75
266,938.75
11/01/05
300,000.00
5.100
5.100
100.000
300,000.00
266,838.75
566,838.75
033,677.50
833,677.50
05/01/06
259,188.75
259.188.75
11/01/06
315,000.00
5.200
5.200
100.000
315.000.00
259.188.75
574,188.75
833,377.50
833,377.50
05/01/07
250,998.75
250.998.75
11/01/07
335,000.00
5.300
5.300
100.000
335.000.00
250,998.75
585,998.75
836,997.50
836,997.50
05/01/08
242.121.25
242,121.25
11/01/08
350,000.00
5.350
5.350
100.000
350,000.00
242,12125
592,12125
834,24250
834,24250
05/01/09
232.758.75
232,758.75
11/01/09
370.000.00
5.400
5.400
100.000
370,000.00
232,758.75
602,758.75
835,517.50
835.517.50
05/01/10
222,768.75
222,768.75
11/01/10
390,000.00
5.450
5.450
100.000
390,000.00
222,768.75
612.768.75
835,537.50
835,537.50
05to ill
212.141.25
212.141.25
11/01/11
410.000.00
5.500
5.500
100.000
410.000.00
212,141.25
622,141.25
834.282-50
834,282.50
05/01/12
200,866.25
200,866.25
11/01/12
435,000.00
5.550
5.550
100.000
435,000.00
200,866.25
635,866.25
836,732-50
836,732-50
05/01/13
188,795.00
188,795.00
11/01/13
455,000.00
5.550
5.550
100.000
455,000.00
188,795.00
643.795.00
832,590.00
832,590.00
05/01/14
176,168.75
176,168.75
11/01/14
485,000.00
5.600
5.600
100.000
485,000.00
176,168.75
661,168.75
837,337.50
837,337.50
05/01/15
162,598.75
162,588.75
11/01/15
510,000.00
5.600
5.600
100.000
510,000.00
162,588.75
672,588.75
835,177.50
835,177.50
05/01/16
148,308.75
148,308.75
11/01/16
540,000.00
5.600
5.600
100.000
540,000.00
148,308.75
668,308.75
836,617.50
836,617.50
05/01/17
133,188.75
133,188.75
11/01/17
570,0010.00
5.600
5.600
100.000
670.000.00
133,188.75
703,188.75
836,377.50
836,377.50
05/01/18
117.228.75
117,228.75
11/01/18
600,000.00
5.600
5.600
100.000
600,000.00
117,228.75
717,228.75
834,457.50
834,457.50
05/01/19
100,428.75
100,428.75
11/01/19
635,000.00
5.650
5.650
100.000
635,000.00
100,428.75
735,428.75
835,857.50
835,857.50
05/01/20
82,490.00
82,490.00
11/01/20
670.000.00
5.650
5.650
100.000
670,000.00
82,490.00
752.490.00
834,980.00
834,980.00
05/01/21
63•562.50
63,562.50
11/01/21
710,000.00
5.650
5.650
100.000
710,000.00
63,562.50
773,562.50
837,125.00
837,125.00
05/01/22
43.505.00
43,505.00
11/01/22
750,000.00
5.650
5.650
100.000
750,000.00
43,505.00
793,505.00
837,010.00
837,010.00
05/01/23
22,317.50
22,317.50
11/0123
790.000.00
5.650
5.650
100.000
790,000.00
22,317.50
812,317.50
834,635.00
834,635.00
12,180,000.00
12,180.000.00
12,730.038.30
24,910.038.30
24,910,038.30
0.00
24.910.038.30
Maximum Annual Debt Service
837,552.50
Target Debt Service
835,000.00
Original Issue Discount
0.00
Dated Date
12/01/93
Delivery Date
12/01/93
First Interest Payment Date
05/0 V94
Accrued Interest
0.00
5.512738
1-T - -I
Arbitrage Yield
Prepared by PFM
824193
MARION COUNTY, FLORIDA
Water and Sewer Revenue Bonds, Series 1993
Sources and Uses of Funds
BASED ON GDU's PROJECTIONS FOR REVENUE AND EXPENSES USED IN DEBT CAPACITY
USING NO STAND-BY FEES "
Sources of Fund*
Par Amount of Bonds 10,960A00.00
Accrued Interest 0.00
Original Issue Discount 0.00
Total 10,9W.000.00
Uses of Funds
Amount Available for Acquisition
9,189,489.20
System Improvements
0.00
Transition Costs (A)
250,000.00
Acquisition Costs (B)
300,000.00
Accrued Interest
0.00
Debt Service Reserve Fund
754,510.00
Capitalized Interest (C)
0.00
Underwriters Discount
1200% 131,520.00
Cost of Issuance
2D0.000.00
Bond Insurance
0.600% 134,480.80
Contingency
0.00
Total 10,960,000.00
(A) Estimate based on a recent acquisiton by a County starting In the Utility business
(B) Estimate based an a recent acquisiton by a County starting in the Utility business
(C) May Require Capitalized Interest In the future for structuring
Assumptions
1) The deposit for acquisiton and construction Is the remaining proceeds.
2) Cost of Issuance is estimated as $200,000.
3) Underwriters Disoount is estimated as $12.00 per $1,000
4) Bond Insurance is estimated as the greater of 0.60% of total debt service or $35,000.
5) The County will fund a debt service reserve.
6) The dated date is 12/1/93.
7) The delivery date is 1211/93.
8) RATES: Assumed Delphis Hanover 94 for August 19, 1993.
9) System Improvements will be deducted from the amount available for acquisiton.
Coverage:
Net Revenue (please see attached) 893,950
R & R Requirement (5% previous years gross rev.) 66,478
Net Available for Debt 827,473
Maximum Annual Debt 754,510
Coverage Factor 1.10
Coverage Amount 72.963
Other Requirements
Captial Outlay 0
Transfer to General Fund 0
End Balance 72,963
"BASED ON INFORMATION SUBMITTED BY GDU (NOT VERIFIED BY PFM)
Prepared by PFM
_7-q
824/93
MARION COUNTY, FLORIDA
Water and Sewer Revenue Bonds, Series 1993
Debt Service Schedule
BASED ON GDU's PROJECTIONS FOR REVENUE AND EXPENSES USED IN DEBT CAPACITY
USING NO STAND-BY FEES "
Capitalized
Net Debt
Date
Principal
Coupon'
Yield
Price
Proceeds
Interest
Debt Service
Annual
Interest
Service
05/01/94
201.369.79
201,369.79
0.00
11/01/94
170,000.00
2200
2800
100.000
170,000.00
241,643.75
411,643.75
613,013.54
0.00
613,013.54
O5101/95
287.592.50
287,592.50
11/01/95
175,000.00
3.400
3.400
100.000
175,000.00
287,592.50
462,592.50
750,185.00
750,185.00
05101/96
284.617.50
284,617.50
11/01/96
185.000.00
3.800
3.800
100.000
185.000.00
294,617.50
469,617.50
754,235.00
754,235.00
O5/01/97
281,102.50
281,102.50
11/01/97
190,000.00
4.050
4.050
100.000
190,000.00
261,102.50
471,102.50
752.205.00
752,205.00
05/01/98
277,255.00
277,255.00
11/01/98
200,000.00
4.250
4.250
100.000
200,000.00
277,255.00
477.255.00
754.510.00
754.510.00
O5101/99
273,005.00
273,005.00
11/01/99
205,000.00
4.450
4.450
100.000
205,000.00
273,005.00
478,005.00
751,010.00
751.010.00
05/01/00
268,443.75
268,443.75
11/01/00
215.000.00
4.600
4.600
100.000
215,000.00
268,443.75
483,443.75
751,887.50
751,887.50
05/01/01
263,498.75
263.498.75
11/01/01
225,000.00
4.700
4.700
100.000
225,000.00
263,498.75
488,498.75
751,997.50
751,997.50
05/01/02
258,21125
258,211.25
11/01/02
235,000.00
4.800
4.800
100.000
235,000.00
258,211.25
493,21125
751,422-50
751,42250
05/01/03
252.571.25
252.571.25
11/01/03
245,000.00
4.9W
4.900
100.000
245,000.00
252,57125
497,571.25
750,142.50
750.142.50
05/01/04
246,568.75
246,568.75
11/01/04
260,000.00
5.000
5,000
100.000
260.000.00
246,568.75
506,568.75
753,137.50
753,137.50
O5101/05
240,068.75
240,068.75
11/01/05
270,000.00
5.100
5.100
100.000
270,000.00
240,068.75
510,068.75
750,137.50
750,137.50
05/01/06
233,183.75
233,193.75
11/01/06
285,000.00
5.200
5.200
100.000
285.000.00
233,183.75
518,183.75
751.367.50
751,367.50
05/01/07
225,773.75
225,773.75
11/01/07
300,000.00
5.300
5.300
100.000
300,000.00
225,773.75
525,773.75
751,547.50
751,547.50
05/01/08
217,823.75
217,823.75
WOMB
315.000.00
5.350
5.350
100.000
315.000.00
217,823.75
532,823.75
750.647.50
750,647.50
05/01/09
209,397.50
209,397.50
11/01/09
335,000.00
5.400
5.400
100.000
335,000.00
209,397.50
544.397.50
753,795.00
753,795.00
05/01/10
200,352.50
200,352.50
11/01/10
350.000.00
5.450
5.450
100.000
350,000.00
200.352.50
550,352.50
750,705.00
750,705.00
05/01/11
190,815.00
190,815.00
11/01/11
370,000.00
5.500
5.500
100.000
370,000.00
190,815.00
560,815.00
751,630.00
751,630.00
05/01/12
180,640.00
180,640.00
11/01/12
390,000.00
5.550
5.550
100.000
390.000.00
180,640.00
570,640.00
751,280.00
751,280.00
05/01/13
169,817.50
169,817.50
11/01/13
410,000.00
5.550
5,550
100.000
410,000.00
169,817.50
579,817.50
749,635.00
749.635.00
05/01/14
158,440.00
158,440.00
11/01/14
435,000.00
5.600
5.600
100.000
435,000.00
158,440.00
593,440.00
751,880.00
751,880.00
05/01/15
146,260.00
146,260.00
11/01/15
460,000.00
5.600
5.600
100.000
460,000.00
146.260.00
606,260.00
752,520.00
752,520.00
05/01/16
133,380.00
133,380.00
11/01/16
485,000.00
5.600
5.600
100.000
485,000.00
133,380.00
618,380.00
751.760.00
751,760.00
05/01/17
119,800.00
119,800.00
11/01/17
510,000.00
5.600
5.600
100.000
510,000.00
119,800,00
629,800.00
749,600.00
749,600.00
05f0l/18
105,520.00
105,520.00
11/01/18
540,000.00
5.600
5.600
100.000
540,000.00
105.520.00
645,520.00
751,040.00
751,040.00
05/01/19
90,400.00
90,400.00
11/01/19
570,000.00
5.650
5.650
100.000
570.000.00
90,400.00
660,400.00
750,800.00
750,800.00
05/0 V20
74297,50
74,297.50
11/01/20
605,000.00
5.650
5.650
100.000
605.000.00
74297.50
679,297.50
753,595.00
753,595.00
O5101121
57206.25
57,206.25
11/01/21
640,000.00
5.650
5.650
100.000
640,000.00
57.206.25
697.206.25
754,41250
754,41250
05/01/22
39,126.25
39,126.25
11/0V22
675,000.00
5.650
5.650
100.000
675,000.00
39,126.25
714,126.25
753,252.50
753,252-50
05/01/23
20,057.50
20,057.50
11/01/23
710,000.00
5.650
5.650
100.000
710,000.00
20,057.50
730,057.50
750,115.00
750,115.00
10,960,000.00
10.960,000.00
11,453,466.04
22,413,466.04
22,413.466.04
0.00
22,413,466.04
Maximum Annual
Debt Service
754,510.00
Target Debt Service
752,000.00
Original Issue Discount
0.00
Dated Dale
12/01/93
Delivery Date
12/01/93
First Interest Payment Date
05tOV94
/
Awued Interest
0.00
Arbitrage Yield
5.512611
Prepared by PFM
824/93
MARION COUNTY, FLORIDA
Water and Sewer Revenue Bonds, Series 1993
Sources and Uses of Funds
BASED ON GDLrs PROJECTIONS FOR REVENUE AND EXPENSES USED IN DEBT CAPACITY
USING 50% OF STAND BY FEES AND OWNER PARITY BONDS"
Sources of Funds Public Bonds Owner Bonds TOTAL
Par Amount of Bonds 6,055,000.00 6,055,000.00 12, 110,000.00
Accrued Interest O.Go 0.00 0.00
Original issue Discount 0.00 0.00 0.00
TOW 6,055,000.00 6,055,000.00 12,110,000.00
Uses of Funds
Amount Available for Acquisition
4,740,423.17
6A55,000.00
10,795,423.17
System Impovements
OAo
0.00
0.00
Transition Costs (A)
250,000.00
0.00
250.000.00
Acquisition Costs (B)
300,000.00
0.00
300,000.00
Accrued Interest
0.00
0.00
0.00
Debt Service Reserve Fund
417,602.50
0.00
417,602.50
Capitalized Interest (C)
OAO
0.00
0.00
Underwriter's Discount
1200% 72.660.00
0.00
72,660.00
Cost of Issuance
200,000.00
0.00
200,000A0
Bond Insurance
0.600% 74.314.33
0.00
74,314.33
Contingency
0.00
0.00
0.00
Tom
6,055,000.00
6,055,000.00
12,110,000.00
(A) Estimate based on a record acquiskon by a County starting in the Utility business
(B) Estimate based on a recent acquiskon by a County starting in the Utility business
(C) May Require Capitalized interest in the future for structuring
Assumptions
1) The deposit for aoquisiton and construction Is the remaining proceeds.
2) Cost of Issuance is estimated as $200,000.
3) Underwriters Discount is estimated as $12.00 per $1,000
4) Bond Insurance Is estimated as the greater of 0.60% of total debt service or $35,000.
5) The County will fund a debt service reserve.
6) The dated date Is 1211193.
7) The delivery date is 12/1/93.
8) RATES: Assumed Delphis Hanover 94 for August 19, 1993.
9) System improvements will be deducted from the amount available for acquisiton.
Coverage:
Net Revenue (please see attached)
985,356
R & R Requirement (5% previous years gross rev.)
66,478
Net Available for Debt
918,879
Maximum Annual Debt Parity Bonds
835,205
Coverage Factor
1.10
Coverage Amount
83,674
Other Requirements
Captial Oullay
0
Transfer to General Fund
0
End Balance
83,674
"BASED ON INFORMATION SUBMITTED BY GDU (NOT VERIFIED BY PFM)
Prepared by PFM 824/93
MARION COUNTY, FLORIDA
Water and Sewer Revenue Bonds, Series 1993
Debt Service Schedule - PUBLIC BONDS
BASED ON GDU's PROJECTIONS FOR REVENUE AND EXPENSES USED IN DEBT CAPACITY
USING 50%OF STAND BY FEES AND OWNER PARITY BONDS"
Capitalized
Net Debt
Date Principal
Coupon'
Yield
Price
Proceeds
Interest
Debt Service
Annual
Interest
Service
05/01/94
111,263.02
111.263.02
0.00
11/01/94
95,000.00
2.800
2800
100.000
95,000.00
133.515.63
228,515.63
339,778.65
0.00
339.778.65
05/01/95
158,888.75
158,888.75
11/01/95
95,000.00
3.400
3.400
100.000
95,000.00
158,W8.75
253,888.75
412,777.50
412,777.50
05/01/96
157,273.75
157.273.75
11/01/96
100.000.00
3.800
3.800
100.000
100,000.00
157,273.75
257.273.75
414,547.50
414,547.50
05./01/97
155,373.75
155,373.75
11/01/97
105,000.00
4.050
4.050
100.000
105,000.00
155,373.75
260,373.75
415,747.50
415.747.50
O5/01M
153,247.50
153,247.50
11/01/98
110.000.00
4.250
4250
100.000
110,D00.00
153,247.50
263,247.50
416,495.00
416,495.00
O5/01/99
150,910.00
150,910.00
11/01/99
115,000.00
4.450
4.450
100.000
115,000.00
150,910.00
265,910.00
416,820.00
416,920.00
05/01/00
148,351.25
148,351.25
11/01/00
120.000.00
4.600
4.600
100.000
120,000.00
148,351.25
268,35125
416.702.50
416.702-50
05/01/O1
145,591.25
145,591.25
11/01/01
125,000.00
4.700
4.700
100.000
125,000.00
145.591.25
270,591.25
416, 1132.50
416,18250
05/01/02
142,653.75
142,653.75
11/01/02
130,000.00
4.800
4.800
100.000
130.000.00
142,653.75
272.653.75
415,307.50
415,307.50
05/01/03
139,533.75
139,533.75
11/OM3
135,000.00
4.900
4.900
100.000
135,000.00
139,533.75
274,533.75
414,067.50
414.067.50
05/01/04
136,226.25
136,226.25
11/01/04
140,000.00
5.000
5.000
100.000
140,000.00
136.22625
276226.25
412,452.50
412,45250
05/01/05
132,726.25
132.726.25
11/0M5
150,000.00
5.100
5.100
100.000
150,000.00
132.726.25
282,726.25
415,452.50
415,452.50
O5/01/06
128,901.25
128,901.25
11/O1/06
155,000.00
5.200
5200
100.000
155,000.00
128,90125
283,901.25
412,802.50
41ZB02-50
051OM7
124,87125
124,87125
11/01/07
165,000.00
5.300
5.300
100.000
165.000.00
124.671.25
289,87125
414.742.50
414,74250
05/01/08
120,498.75
120,498.75
11/01/08
175,000.00
5.350
5.350
100.000
175,000.00
120,496.75
295,498.75
415,997.50
415,997.50
05/01/09
115,817.50
115,817.50
11/01/09
185,000.00
5.400
5AOO
100.000
185,000.00
115,817.50
300,817.50
416,635.00
416,635.00
05/01/10
110,822.50
1 10,822.50
11/01/10
195,000.00
5.450
5A50
100.000
195,000.00
110.822.50
305,822.50
416,645.00
416,645.00
05/01/11
105,508.75
105,508.75
11/01/11
205,000.00
5.500
5.500
100.000
205,000.00
105,506.75
310,508.75
416,017.50
416,017.50
05/01/12
99,871.25
99,871.25
11/01/12
215,000.00
5.550
5.550
100.000
215,000.00
99,871.25
314,87125
414,742.50
414,742-50
O5/01/13
93.905.00
93,905.00
11/01/13
225,000.00
5.550
5.550
100.000
225,000.00
93,905.00
318,905.00
412,810.00
41Z810.00
05r01/14
87,66125
87,661.25
11/01/14
240,000.00
5.600
5.600
100.000
240,000.00
87,661.25
327,661.25
415,322.50
415,322.50
05/01/15
80,941.25
80.941.25
11/01/15
255,000.00
5.600
5.600
100.000
255,000.00
80,941.25
335,94125
416,882.50
416,88250
05/01/16
73,80125
73,801.25
11/O1/16
270,000.00
5.600
5.600
100.000
270,000.00
73,80125
343,80125
417.602.50
417,602-50
05/01/17
66,241.25
66,241.25
11/01/17
285,000.00
5.600
5.600
100.000
285,000.00
66,241.25
351,24125
417,492.50
417,48250
05/01/18
58.261.25
58,261.25
11/01/18
300,000.00
5.600
5.600
100.000
300,000.00
58,261.25
356,26125
416,522.50
416,52250
05/01/19
49,86125
49,86125
11/01/19
315,000.00
5.6W
5.650
100.000
315,OOO.00
49.06125
364,86125
414,722.50
414,722-50
05/01/20
40,962.50
40,962.50
11/0120
335,000.00
5.650
5.650
100.000
335,000.00
40,962.50
375,962.50
416,925.00
416,925.00
05/0121
31,498.75
31,496.75
11/0121
350,000.00
5.650
5,650
100.000
350.000.00
31,498.75
381,498.75
412,997.50
41Z997.50
05/01/22
21,61125
21,611.25
11/01/22
370,000.00
5.650
5.650
100.000
370,000.00
21,611.25
391,61125
413,222.50
413.222.50
05/01/23
11,158.75
11,158.75
11/01/23
395,000.00
5.650
5.650
100.000
395,000.00
11,158.75
406,158.75
417,317.50
417,317.50
6,055,000.00
6,055,000.00
6,330,721.15
12,385,721.15
12,385,721.15
0.00
12.385,721.15
Maximum Annual Debt Service
417,602.50
Target Debt Service
415,0DO.00
Original Issue Discount
0.00
Dated Date
12/01/93
Delivery Date
12/01/93
First Interest Payment Date
05/0 V94
v/
Accrued Interest
0.00
- o
Arbitrage Yield
5.512901
Prepared by PFM
8/24/93
MARION COUNTY, FLORIDA
Water and Sewer Revenue Bonds, Series 1993
Debt Service Schedule -OWNER'S BONDS
BASED ON GDU's PROJECTIONS FOR REVENUE AND EXPENSES USED IN DEBT CAPACITY
USING 50%OF STAND BY FEES AND OWNER PARITY
BONDS"
Capitalized Net Debt
Date
Principal
Coupon'
Yield
Price
Proceeds
Interest
Debt Service
Annual
Interest Service
0510194
1 1 1,263.02
111,263.02
0.00
11/01/94
95,000.00
2.800
2.800
100.000
95,000.00
133,515.63
228,515.63
339,778.65
0.00 339.778.65
05f0195
158,888.75
158.888.75
11/0195
95,000.00
3.400
3.400
100.000
95.000.00
158,888.75
253,888.75
412,777.50
412,777.50
05'0196
157,273.75
157,273.75
11/0196
100,000.00
3.800
3.800
100.000
100,000.00
157,273.75
257,273.75
414,547.50
414,547.50
05101/97
155,373.75
155,373.75
11/0197
105,000.00
4.050
4.050
100.000
105,000.00
155,373.75
260.373.75
415,747.50
415,747.50
05/01/98
153,247.50
153.247.50
11/0198
110,000.00
4.250
4.250
100.000
110,000.00
153,247.50
263,247.50
416,495.00
416,495.00
05/0199
150,910.00
150,910.00
11/0199
115,000.00
4.450
4.450
100.000
115,000.00
150,910.00
265,910.00
416A20.00
416.820.00
05/01/00
148,35125
148,351.25
11/01/00
120.000.00
4.600
4.600
100.000
120.000.00
148.35125
268,351.25
416,702.50
416,702.50
05/01/01
145,59125
145,591.25
11/01/01
125,000.00
4.700
4.700
100.000
125,000.00
145,59125
270,591.25
416,182.50
416,182-50
05/01/02
142,653.75
142.653.75
11/01/02
130,000.00
4.800
4.800
100.000
130,000.00
142,653.75
272,653.75
415.307.50
415.307.50
05/01/03
139,533.75
139,533.75
11/01/03
135,000.00
4.900
4.900
100.000
135,000.00
139.533.75
274,533.75
414,067.50
414,067.50
05/01/04
136,22625
136,226.25
11/01/04
140,000.00
5.000
5.000
100.000
140,000.00
136,22625
276,226.25
412.452.50
412,452.50
05/01/05
132,72625
132,726.25
11/01M5
150,000.00
5.100
5.100
100.000
150,000.00
132,72625
282,726.25
415,452.50
415,452.50
05/01/06
128,90125
128,901.25
11/01/06
155,000.00
5.200
5.200
100.000
155,000.00
128,90125
283,901.25
412.802.50
412.802.50
O5/01N7
124,87125
124,871.25
11/01r07
165,000.00
5.300
5.300
100.000
165,000.00
124,87125
289,87125
414,742.50
414,742.50
05101/08
120,498.75
120,498.75
11/01N8
175,000.00
5.350
5.350
100.000
175.000.00
120,498.75
295,498.75
415,997.50
415,997.50
05/01/09
115,817.50
115,817.50
11/01N9
185,000.00
5.400
5.400
100.000
185,000.00
115,817.50
300,817.50
416,635.00
416,635.00
05/01/10
110,822.50
110,822.50
11/01/10
195,000.00
5.450
5.450
100.000
195,000.00
110,822.50
305,822.50
416,645.00
416.645.00
05/01/11
105,508.75
105,508.75
11/01/11
205,000.00
5.500
5.500
100.000
205.000.00
105,508.75
310,508.75
416,017.50
416,017.50
05/01/12
99,871.25
99,871.25
11/01/12
215,000.00
5,550
5.550
100.000
215,000.00
99,87125
314,871.25
414,742.50
414.742.50
05/01/13
93,905.00
93,905.00
11/01/13
225,000.00
5.550
5.550
100.000
225,000.00
93,905.00
318.905.00
412,810.00
412.810.00
05V/14
87,66125
87,66125
11/01/14
240,000.00
5.600
5.600
100.000
240,000.00
87,661.25
327,661.25
415,322.50
415,322.50
05/01/15
80,941.25
80,941.25
11/01/15
255,000.00
5.600
5.600
100.000
255,000.00
80,94125
335,941.25
416JW.50
416.882.50
05/01/16
73,80125
73,801.25
11/01/16
270,000.00
5.600
5.600
100.000
270,000.00
73,80125
343,801.25
417,602.50
417,602.50
05/01/17
66,241.25
66,241.25
11/01/17
285,000.00
5.600
5.600
100.000
285,000.00
66,241.25
351,241.25
417.482.50
417,482.50
05/01/18
58,261.25
58,261.25
11/01/18
300,000.00
5.600
5.600
100.000
300,000.00
58,261.25
358,26125
416,522.50
416,522.50
05/01/19
49,86125
49,861.25
11/01/19
315.000.00
5.650
5.650
100.000
315,000.00
49,861.25
364.061.25
414,722.50
414,722.50
05/0120
40,962-50
40,962.50
11/0120
335.000.00
5.650
5.650
100.000
335,000.00
40.96250
375,962.50
416,925.00
416,925.00
05MI21
31,498.75
31,498.75
11/0121
350.000.00
5.650
5.650
100.000
350,000.00
31,49&75
381,498.75
412,997.50
412,997.50
0510122
21,61125
21,611.25
11/01/22
370,D00.00
5.650
5.650
100.000
370,000.00
21,611.25
391,611.25
413222.50
413,222.50
0510123
11,158.75
11,158.75
11/0123
395,000.00
5.650
5.650
100.000
395,000.00
11,158.75
406,158.75
417,317.50
417,317.50
6,055,000.00
6,055,000.00
6,330,721.15
12,385.721.15
12,385,721.15
0.00 12,385,721.15
Maximum Annual Debt Service
417,602.50
Target Debt Service
415,000.00
Original Issue Discount
0.00
Dated Date
12/0193
Delivery Date
12/0193
First Interest Payment Date
05/0194
Accrued Interest
0.00
Prepared by. PFM 8/24/93
MARION COUNTY, FLORIDA
Water and Sewer Revenue Bonds, Series 1993
Sources and Uses of Funds
BASED ON GDU's PROJECTIONS FOR REVENUE AND EXPENSES USED IN DEBT CAPACITY
USING 50%OF STAND BY FEES AND OWNER SUBORDINATE BONDS"
Sources of Funds Public Bonds Owner Bonds TOTAL
Par Amount of Bonds 6,055,000.00 72W.000.00 13,315.000.00
Accrued Interest 0.00 0.00 0.00
Original Issue Discount 0.00 0.00 0.00
Total 6,055,000.00 72W,000.00 13,315,000.00
Uses of Funds
Amount Available for Acquisition
4,74Q,423.17
7,26Q000.00
12,000,423.17
System Improvements
0.00
0.00
0.00
Transition Costs (A)
250,000.00
0.00
250,000.00
Acquisition Costs (B)
300.000.00
0.00
300,000.00
Accrued Interest
0.00
0.00
0.00
Deb Service Reserve Fund
417,602.50
0.00
417,602.50
Capitalized Interest (C)
0.00
0.00
0.00
Underwriters Discount
1200% 72.660.00
0.00
72,660.00
Cost of Issuance
200,000.00
0.00
200,000,00
Bond Insurance
0.600% 74,314.33
0.00
74,31433
Contingency
0.00
0.00
0.00
Total
6.055,000.00
72W,000.00
13.315,000.00
(A) Estimate based on a recent aoquiskon by a County starting in the Utility business
(B) Estimate based on a recent acquiskon by a County starting In the Utility business
(C) May Require Capitalized Interest In the future for structuring
Assumptions
1) The deposit for acquisiton and construction is the remaining proceeds.
2) Cost of Issuance is estimated as $200,000.
3) Underwriters Discount is estimated as $12.00 per $1,000
4) Bond insurance is estimated as the greater of 0.60% of total debt service or $35,000.
5) The County will fund a debt service reserve.
6) The dated date is 1211/93.
7) The delivery date Is 12/1/93.
8) RATES: Assumed Delphis Hanover 94 for August 19, 1993.
9) System improvements will be deducted from the amount avallable for acquisiton.
Coverage.
Net Revenue (please see attached)
985,356
R 8 R Requirement (5% previous year's gross rev.)
66.478
Net Available for Debt
918,879
Maximum Annual Debt Parity Bonds
417,603
PARITY Coverage Factor
2.20
Coverage Amount
501,276
Debt on Subordinate
Owners Bonds
500,200
SUBORDINATE Coverage Factor
1.00
Other Requirements
Captial Outlay
0
Transfer to General Fund
0
End Balance
1,076
"BASED ON INFORMATION SUBMITTED BY GDU (NOT VERIFIED BY PFM) � / /1
Prepared by PFM 824193
MARION COUNTY, FLORIDA
Water and Sewer Revenue Bonds, Series 1993
Debt Service Schedule - PUBLIC BONDS
BASED ON GDU's PROJECTIONS FOR REVENUE AND EXPENSES USED IN DEBT CAPACITY
USING 50% OF STAND BY FEES AND OWNER SUBORDINATE BONDS"
Capitalized
Net Debt
Date Principal
Coupon •
Yield
Price
Proceeds
Interest
Debt Service
Annual
Interest
Service
0510 V94
11 1,263.02
111,263.02
0.00
11/01/94
95,000.00
2.800
2.800
100.000
95,000.00
133,515.63
228,515.63
339,778.65
0.00
339,778.65
05/01/95
158.888.75
158,BW.75
11/01/95
95,000.00
3.400
3.400
100.000
95,000.00
158,898.75
253,888.75
41Z777.50
412,777.50
05/01/96
157,273.75
157,273.75
11/01/96
100,000.00
3.800
3.800
100.000
100,000.00
157,273.75
257,273.75
414.547.50
414,547.50
05/01/97
155,373.75
155,373.75
11/01/97
105,000.00
4.050
4.050
100.000
105,000,00
155,373.75
260.373.75
415,747.50
415,747.50
05/01/98
153,247.50
153,247.50
11/01/98
110,000.00
4.250
4250
100.000
110,000.00
153,247.50
263.247.50
416,495.00
416,495.00
05/01M
150,910.00
150,910.00
11/01/99
115.000.00
4.450
4.450
100.000
115,000.00
150,910.00
265,910.00
416,820.00
416,820.00
05/01/00
148,351.25
148.351.25
11/01/00
120,000.00
4.600
4.600
100.000
120,000.00
148,351.25
268,35125
416,702.50
416.702.50
05/01/01
145,591.25
145,591.25
11/01/01
125,000.00
4.700
4.700
100.000
125,000.00
145,591.25
270,591.25
416,182.50
416,182.50
05/01/02
142,653.75
142,653.75
11/01/02
130,000.00
4.800
4.800
100.000
130,000.00
142,653.75
272,653.75
415,307.50
415,307.50
05/01/03
139,533.75
139,533.75
11/01/03
135,000.00
4.900
4.900
100.000
135,000.00
139,533.75
274,533.75
414,067.50
414,067.50
05/01/04
136,226.25
136.226.25
11/01/04
140,000.00
5.000
5.000
100.000
140,000.00
136,226.25
276.226.25
412,452.50
412,45250
05/01/05
132,72625
132,726.25
11/01/05
150,000.00
5.100
5.100
100.000
150,000.00
132.726.25
282,726.25
415,452.50
415,452.50
05/01/06
128,901.25
128,901.25
11/01/06
155,000.00
5.200
5200
100.000
155,000.00
128.901.25
283,90125
412,802.50
41Z802.50
05/01/07
124,87125
124,871.25
11/01/07
165.000.00
5.300
5.300
100.000
165,000.00
124,871.25
289,871.25
414,742.50
414,74250
05/01/08
120.498.75
120,498.75
11/01/08
175.000.00
5.350
5.350
100.000
175,000.00
120,498.75
295,498.75
415,997.50
415,997.50
05/01/09
115,817.50
115.817.50
11/01/09
185.000.00
5.400
5.400
100.000
185,000.00
115,817.50
300,817.50
416,635.00
416,635.00
05/01/10
110,822.50
110,922.50
11/01/10
195,000.00
5.450
5.450
100.000
195,000.00
110,822.50
305,822.50
416.645.00
416.645.00
05/01/11
105,508.75
105.508.75
11/01/11
205,000.00
5.500
5.500
100.000
205,000.00
105,508.75
310,508.75
416,017.50
416,017.50
05/01/12
99,871.25
99,871.25
11/01/12
215.000.00
5.550
5.550
100.000
215,000.00
99,871.25
314,871.25
414,742.50
414.742.50
05/01/13
93.905.00
93,905.00
11/01/13
225,000.00
5.550
5.550
100.000
225,000.00
93,905.00
318,905.00
412,810.00
412,810.00
05/01/14
87.66125
87,661.25
11/01/14
240,000.00
5.600
5.600
100.000
240,000,00
87.661.25
327,661.25
415,322.50
415.322-50
05/01/15
80,941.25
80,941.25
11/01/15
255,000.00
5.600
5.600
100.000
255,000.00
80.94125
335.941.25
416,882.50
416,882.50
05/01/16
73.801.25
73.801.25
11/01/16
270,000.00
5.600
5.600
100.000
270,000.00
73,801.25
343,801.25
417.602.50
417,602.50
05/01/17
66,241.25
66,24125
11/01/17
295,000.00
5.600
5.600
100.000
285,000.00
66,241.25
351,241.25
417,482.50
417,482-50
05/01/18
58.261.25
58,261.25
11/01/18
300,000.00
5.600
5.600
100.000
300,000.00
58,261.25
358,26125
416,522.50
416,52250
05/01/19
49,861.25
49,861.25
11/01/19
315,000.00
5.650
5.650
100.000
315,000.00
49,861.25
364,86125
414,722.50
414,722-50
05/01/20
40,962.50
40,962.50
11/01/20
335,000.00
5.650
5.650
100.000
335.000.00
40,962.50
375.962.50
416,925.00
416,925.00
05/0121
31.498.75
31,49B.75
11/0121
350,000.00
5.650
5.650
100.000
350,000.00
31,498.75
381,496.75
412,997.50
412,997.50
05/01/22
21.61125
21.611.25
11/01/22
370,000.00
5.650
5,650
100.000
370,000.00
21,611.25
391,611.25
413,222.50
413,222.50
05/0123
11,158.75
11,158.75
11/01/23
395,000.00
5.650
5.650
100.000
395,000.00
11,158.75
406.158.75
417,317.50
417,317.50
6,055,000.00
6,055,000.00
6,330,721.15
12,385,721.15
12,385,721.15
0.00
12,385,721.15
'
Maximum Annual Debt Service
417,602.50
Target Debt Service
415,000.00
Original Issue Discount
0.00
Dated Date
12/01/93
Delivery Date
12/01/93
First Interest Payment Date
05/01/94
Accrued Interest
Arbitrage Yield
0.00
5.512901
/
l
Prepared by PFNI
824/93
MARION COUNTY, FLORIDA
Water and Sewer Revenue Bonds, Series 1993
Debt Service Schedule -OWNER'S BONDS
BASED ON GDU's PROJECTIONS FOR REVENUE AND EXPENSES USED IN DEBT CAPACITY
USING 50% OF STAND BY FEES AND OWNER SUBORDINATE BONDS"
Capitalized Net Debt
Date
Principal
Coupon •
Yield
Price
Proceeds
Interest
Debt Service
Annual
Interest Service
05/01/94
133,40T99
133,407.99
0.00
11/01/94
115,000.00
2.800
2.800
100.000
115,000.00
160,089.58
275,089.58
408,497.57
0.00 408.497.57
05(01/95
190,497.50
190,497.50
11/01/95
115,000.00
3.400
3.400
100.000
115,000.00
190,497.50
305,497.50
495,995.00
495,995.00
05/01/96
188,542.50
188,542.50
11/O1/96
120.000.00
3.800
3.800
100.000
120,D00.00
188,542.50
308,542.50
497,085M
497,085.00
O5101197
186,262.50
186.262.50
11/01/97
125,000.00
4.050
4.050
100.000
125,000.00
186,262.50
311,262.50
497,525.00
497.525.00
05101/98
183,73125
183,731.25
11/01M
130.000.00
4250
4.250
100.000
130,000.00
183,73125
313,731.25
497,462.50
497.462.50
05/01/99
180,968.75
180,968.75
11/O1/99
135.000.00
4.450
4.450
100.000
135,000.00
180,968.75
315,968.75
496,937.50
496,937.50
O5/01100
177.965.00
177,965.00
11/01/00
140.000.00
4.600
4.600
100.000
140.000.00
177,965.00
317,965.00
495,930.00
495.930.00
05101101
174, 745.00
174, 745.00
1 MIMI
150,000.00
4.700
4.700
100.000
150,000.00
174,745.00
324,745.00
499,490.00
499.490.00
05/01/02
171220.00
171.220.00
11/01/02
155,000.00
4.800
4.8)0
100.000
155,000.00
171,220.00
326,220.00
497,440.00
497,440.00
05/01/03
167,500.00
167,500.00
11/0IM3
165,000.00
4.900
4.900
100.000
165,000.00
167,500.00
332.500.00
500.000.00
500,000X0
O5101/04
163,457.50
163.457.50
11/01/04
170,000.00
5.000
5.000
100.000
170.000.00
163,457.50
333.457.50
496.915.00
496.915.00
05/01/05
159,207.50
159,207.50
11/01/05
190,000.00
5.100
5.100
100.000
180,000.00
159,207.50
339,207.50
498,415.00
498,415.00
05/01/06
154,617.50
154.617.50
11/O1/06
190,000.00
5200
5.200
100.000
190,000.00
154,617.50
344,617.50
499235.00
499,235.00
O5101107
149.677.50
149,677.50
11/01/07
200,000.00
5300
5.300
100.000
200,000.00
149,677.50
349.677.50
499,355.00
499,355.00
05/01/08
144,377.50
144,377.50
11/01/08
210,000.00
5.350
5.350
100.000
210,000.00
144,377.50
354,377.50
498,755.00
498.755.00
05/01 /09
138.760.00
138,760.00
11/01/09
220.000.00
5,400
5.400
100.000
220,000.00
138,760.00
358.760.00
497.520.00
497,520.00
05/01/10
132,820.00
132.820.00
11/01/10
230,000.00
5,450
5.450
100.000
230,000.00
132,820.00
362.820.00
495,640.00
495.640.00
Oslo 1/11
126,552.50
126,552.50
11/01/11
245.000.00
5.500
5.500
100.000
245,000.00
126.552.50
371,552.50
498.105.00
498.105.00
05/01/12
119,815.00
t 19.815.00
11/01/12
260,000.00
5.550
5.550
100.000
260,000.00
119,815.00
379,815.00
499,630.00
499,630.00
05/O1113
112,600.00
112.600.00
11/01/13
275,000.00
5,550
5.550
100.000
275,000.00
112,600.00
387,600,00
500,200,00
500,200.00
05/01/14
104,968.75
104.968.75
11/01/14
290,000.00
5,600
5.600
100.000
290.000.00
104,968.75
394.968.75
499.937.50
499.937.50
O5101/15
96.841175
96,848.75
11/01/15
305,000.00
5.600
5.600
100.000
305,000.00
96,848.75
401.848.75
498,697.50
498,697.50
05/O1/16
K30&75
88.308.75
1 V01/16
320,000.00
5.600
5.600
100.000
320,000.00
88,308.75
408.308.75
496.617.50
496.617.50
O5101/17
79,34$75
79,348.75
11/01/17
340,000.00
5.600
5.600
100.000
340,000.00
79,348,75
419,348.75
498,697.50
498,697.50
O5/01/18
69,828.75
69,828.75
11/01/18
360,000.00
5.600
5.600
100.000
360,000.00
69,828,75
429.828.75
499,657.50
499,657.50
05/01/19
59,748.75
59,748.75
11/01/19
380.000.00
5.650
5.650
100.000
380,000.00
59,748,75
439,748.75
499,497.50
499.497.50
05/0120
49,013,75
49.013.75
1110120
400,000.00
5.650
5.650
100.000
400,000.00
49,013.75
449,013.75
498,027,50
498.027.50
05✓0121
37,713,75
37,713.75
1110121
420,000.00
5.650
5,650
100.000
420,000,00
37,713,75
457.713.75
495,427.50
495,427.50
05/0122
25,846,75
25,848.75
1110122
445.000.00
5.650
5.650
100.000
445,000.00
25,848,75
470,848.75
496,697.50
496.697.50
05/0123
13277,50
13,277.50
1110123
470,000.00
5.650
5.650
100.000
470,000.00
13,277,50
483.277.50
496,555.00
496,555.00
7.260,000.00
7,260.000.00
7.589,945.07
14,849,945.07
14,849,945.07
0.00 14,849,945.07
Maximum Annual Debt Service
500,200.00
Target Debt Service
498,000.00
Original Issue Discount
0.00
Dated Date
12/01/93
Delivery Date
12/01/93
First Interest Payment Date
05/01/94
Accrued Interest
O.DO
Prcpared by
PFN1
8/24193
ft
Greater Hills Water System
Summary
System:
Plant, Phase I 498,000
Distribution - Greater Hills 405,000
Main to Greater Pines 259,000
Plant Improvements 385,000
Distribution - Greater Pines, Phase I 77,764
Add:
Engineering at 10% 162,476
Land Value (Plant) 62,500
Permits and Testing at 2 % 32,495
Deduct:
Used Equipment in Plant Phase I �Ot, (100,000)
Depreciatio 2 years (30 yr. base); (108,318)
Connection Fees Collected (301)'' 16( 2,540)
Estimated Value
Additional Considerations:
Profit on Investment at 10 %
PSC Franchise Costs (est.)
1,624,764
257,471
37( 0.858)
1,511,380
178,223
25,000
i
c=� /J, //s Z, -, � i S,z4-
191"4-134 cwa
�ss
?S r 2& /" -
.54 `f yrs,
A- Vv- = y � 4ke, Y�� J r- rzr.� =
Y"C- �/ 4/ oS3
9O cl,"T
�c,d 7L �vrL�C. lG- S �.fv
cMt 7. �11g1
�f p, Fff�� r
Ole if fi
LI,M 4 h n�j
liflor
16flyll
e/A-, sf, t//g s`-sy
l(t /4.14.0 i
64�-
/f - sz /c ,r / /1
l t47
X 3�v
s.G
Billing
Period
Jan 15
Feb 15
Mar 15
Apr 15
May 15
June 15
July 15
Aug 15
Sept .15
Oct 15
Nov 15
Dec 15
LAKE HILLS UTILITIES, INC.
CONSUMPTION / REVENUE COMPARISON REPORT
Consumption
1991
1992
1993
------------
1,706,550
------------
4,754,8I0
------------
3,382,900
1,453,610
3,282,030
2,593,280
1,396,180
3,950,830
2,193,330
1,405,397
4,806,040
3,194,410
2,881,713
5,076,160
7�2 c�
3,429,790
12,633,220
2,629,240
4,968,030
2,498,520
5,791,760
2,763,780
2,953,670
4,420,930
3,660,700
3,274,300
4,253,450
3,336,500
2,929,330
Water Revenue
1991
1992
1993
---------
25.I/ 2,928
------------------
7,169'
6,232
2,700
5,483
5,305
2,744
5,292 j(,4,,
4,909
2,807
7,420
6,178
4,416
7,757
plc 5,I88
16,395
4,342
—7,783
4,380
8,748
4,709
5.643
6,546
6,463
5,375
7,170
3,&S 5,431
5,688
6//
5
CAST
Customer
Count
---------------------------------
1991
1992
1993
---------
113
---------
193
---------
263
1I1
I90
267 571L
123
195
275
129
215
284 iir r�
137
218
137
229
147
236
166
237
175
247
164
253
174
254
177
257
,/,AP
IV4
Zt7
d�e�i -� = z�-ro
��k
�3a
it ling
eriod
an 15
eb I5
3r 15
pr 15
iy 15
sne 15
ily 15
1g 15
-Ip t ..15
.t 15
-)v 15
:1c 15
S-aL D
LAKE HILLS UTILITIES, INC. i
CONSUMPTION J REVENUE COMPARISON REPORT
. Consumption
Water Revenue
---------------------------------
------------------------------------------
1991 ?-M, eo 1992 -p,,, vcV 1993
RAMrEFO 1991
------------------
1992
---------
1993
------------------------------------
1,706,550 1.44,754,8102.?973,382,900
Z2,928
7,169
6,232
1,453,610 �.ib2 3,282,0302.4;9 2,5939280
1 -916 2,700
5,483
5,305
1,396,180144 3,950,8303,661 2,193,330
2,454 2,744
5,292
4,909
1,405,3971,'}4g 4,806,0403,g51 3,194,410
4..524 2,807
7,420
6,I78
2,881,7134-.21Z 5,076,160_9,)4 r7 Z26 ooa
'
4,416
7,757
1 q,4-
3,429,7902.51}2.12,633,220 3.12,t
5,188
I6,395
2,629,240 7.l,c( 4,968,0305,Z-'S
4,342
7,783
2,498,5202.203 5,79I,7603,S85
4,380
8,748
2,763,7805.1922,953,670 3,4-13
4,709
5,643
4,420,930 2.19 3,660,700 3.62q
6,546
6,463
3,274,300 2.24Z4,253,450 34-49
5,375
7,170
3,336,5006,,W1 2,929,330 2,'}g'}-
5,431
5,688
I ��3
220, 000
31, 19 St o se , o6o�a3o
ilk 3b3 ► `L2-°
Customer
Count
---------------------------------
1991
1992
1993
---------
113
---------
193
---------
263
111
I90
267
123
195
275
129
215
284
137
218
303
137
229
147
236
166
237
175
247
164
253
174
254
177
257
M
•
illing
eriod
in 15
ab 15
it 15
pr I5
ly 15
ine 15
ily 15
ig 15
apt ..15
:t 15
)v 15
ac 15
S'aLn
LAKE HILLS UTILITIES, INC. % �X (40 -7-) 7$ q _ 3SI 8
CONSUMPTION / REVENUE COMPARISON REPORT
. Consumption Water Revenue Customer Count
--------------------------------------------------------------------------- ---------------------------------
1991 ?,Lmpeo 1992 -Pp.M?E-0 1993 RAmfeo 1991 1992 1993 1991 1992 1993
------------------------ I------------------------------------------------------------------
1,706,550 1.49 4,754,810 -Z.NT 3,382,900 Z,3z6 2,928 7,169' 6,232\ 113 193 263
1,453,610 1,1b2 3,282,0302.44(a 2,593,280 1.91b 2,700 5,4831 5,305 111 I90 267
1,396,I80 144 3,950,8303,661 2,193,330 2,454 2,744 5,292 i, 4,909 123 195 275
1,405,3971.'}4q 4,806,0403,gs1 3,194,410 4..524 2,807 7,420,j 6,178 I29 215 284
2,881,7134-.ZIZ 5,076,160_q.)6g 6j22b15co (0.35T 4,416 7,757 q,653 137 218
3,429,7902.*-L12,633,220 3,120 JZ 121D 5,188 16_�3995 _,go4 137Lti 229 �43
2,629,240 2.1001 4,968,0305,ZT.5 ' 4,342 7,783 147 236
2,498,5202.20"3 5,791,7603,Sgs 4,380 8,7 I66 237
2,763,7805.1�22,953,670 3,4-13 4,709 5,643 175 247
4,420,9302-it9 3,660,700 3.627 6,546 6,463 164 253 -
3,274,300 2.242.4,253,450 3.4-49 5,375 7,170 174 254
3,336,5006,,Wl 2,929,330 2,'}q'�- 5,431 5,688 177 257, , ,
1911 1 I 4?'�2-.
30)�33I oo-o
-Si 19 6) 51 b
4-'+1 2'+3 , cc,o
p6o,p3O
t �c3
11 Ill o00
It) 3b3 1 qZo
(EEHE��D
N
Springstaad
Engimring, inc.
MEMORANDUM
DATE: November 22, 1993
TO: Wayne Saunders
FROM: John W. Springstead, P.E.
RE: City of Clermont - Greater Hills
Water System Conversion
Preliminary Cost Estimate (No plans)
931520.00
General Criterion
1. 4700 Residential units
2. Residential Fire Flow/1 hour - 500 GPM
3. Commercial Fire Flow/3 hours - 1500 GPM
Improvements
1. 500,000 gal elevated tank
Foundation Design - 3000 PSF
2
3
2
3
N
5
Leg Tank
Single Pedestal
Fluted Base
CALDWELL TANK CO
$305,000
$390,000
$420,000
Pump & motor modifications
Gould Pump Co.
Electric pump control panel (2)
Allen-Bradley
Automatic Pump Control System
Autocon, 2 pumps & tank
CBI-NACON TANKS (OPTION)
$465,000
$510,000
$540,000
Transmission Line, Valves, PRV's & appurtenances
8600' PVC Pipe
6.
Plant Piping and
Alteration with
Surge Valves
7.
Permitting fees,
engineering and
surveying
USE $305,000
$ 24,931
$ 14,190
$ 28,000
$278,000
$ 65,000
$ 60,000
TOTAL $775,121
UTILITY SYSTEM PRICING VARIABLES
Bond (Present Value) Assumptions:
Rating/Discount Rate
Term to Maturity
Reserve Account
Income Coverage
Cash Flow Assumptions:
Rate Structure
O&M Expenses
Customer Growth
Tap Fees
Utility Acquisition Experience:
Private Utility Seller
AAA Insured or Rated
Longer Term
None if Possible
Low
City or Ch. 180 Rates
Low/Economies of Scale
High Growth
Include
Represented Kissimmee acquiring Central Florida Utilities
Represented Kissimmee acquiring Osceola Services Company
Represented Kissimmee acquiring Indian Ridge Utilites
Represented Charlotte County acquiring GDU
Represented Seminole County negotiating to acquire Sanlando Utilities (incomplete)
Represented St. Augustine Shores, Inc. selling to St. Johns County
Currently representing Bay S&W, Inc. selling to Orange Beach, Alabama
Governmental Buyer
Non Rated
Shorter Term
Fully Funded
High
Low Rates
Separate/Higher O&M Exps.
No Growth
Exclude
PFM
PUBLIC FINANCIAL MANAGEMENT, INC
Financial and Investment Advisors
5900 Enterprise Parkway
Fort Myers, FL 33905
813-693-7117 (Fax) 813-693-6384
September 14, 1993
To: Marion County Board of County Commissioners
From: Lavon Wisher
Public Financial Management, Inc. (PFM)
Re: Silver Springs Shore Utility Acquisition Study
Progress Report - September 14, 1993 Board Meeting
Via.: Hand Delivery
Items for discussions:
• Appointment of Acquisition Attorney
• Appointment of a Acquisition/Negotiation Team
-- Proposed Composition of the Team
A member of the Board of County Commissioners
County Administrator
County Attorney
Other Staff Member(s) designated by the Board
Financial Advisor - PFM
Engineer - Post, Buckley Schuh & Jernigan (PBS&J)
Acquisition Attorney
• Structure for Purchase
-- General Obligation Bonds
-- Revenue Bonds
-- Assessments
-- Stand-by fees
-- Future Bonds to Owner
-- Guarantee Agreement (Credit Enhancement)
• Updated Revenue and Operating Expenses (Attached)
-- Enterprise Funds
-- County Management - County Department
• Assumes Utility Director will be hired
• PFM estimates we are approximately 75% complete in our independent
analysis.
• PFM and PBS&J are prepared to begin compiling data and drafting a final
report.
Attachments
Atlanta Austin Boston Denver Fort Myers Harrisburg Houston Los Angeles Memphis New York Orlando Philadelphia Portland San Francisco
(AR)An Affiliate of Marine Midland Bank, N.A.
SILVER SPRINGS SHORES - HISTORICAL FINANCIAL AND CONVERSION TO COUNTY OWNERSHIP
Line
1990
1991
No.
Description
Actual
Actual
Operating Revenues
1
Water
457357
492,093
2
Sewer
828,859
874,264
3
Misc. Revenue
4
Rate Indexing
5
Interest Income
6
Sub -Total Operating Revenues
1,286,215
1366,357
7
System Growth
TOTAL Operating Revenue
1,286,215
1366,357
Operating Expenses
8
Salaries and Wages - Employees
304,160
376,420
9
Salaries and Wages - Officers, Directors
and Majority Stockholders
0
0
10
Employee Pensions and Benefits
49,006
49,497
11
Payroll Taxes
0
0
12
Purchased Water/SewageTreatment
0
0
13
Sludge Removal Expense
0
0
14
Purchased Power
113,967
122,558
15
Fuel for Power Purchased
0
0
16
Chemicals
-950
6,289
17
Materials and Supplies
156386
162,871
18
Maintenance - Labor
0
0
19
Maintenance - Expense
0
0
Contractual Services
20
Engineering
0
0
21
Accounting
3,574
0
22
Legal
6,216
605
23
Management Fees
60,155
79,467
24
Billing Services
0
0
25
Other
1,225
0
26
Communications
0
0
27
Communications Equipment
0
0
28
Rental Building/Real Property
0
0
29
Rental Equipment
0
0
30
Transportation Expense
25,759
26,486
Insurance
31
Vehicle
0
0
32
General Liability
0
0
33
Workman's Compensation
60,153
34,288
34
Other
38,064
41,647
35
Advertising Expense
0
0
36
Postage & Freight
0
0
37
Uniforms
0
0
38
Office Supplies & Stationary
0
0
39
Subscriptions
0
0
40
Trade & Business Memberships
0
0
Regulatory Commission Expenses
41
Amortization of Rate Case Expense
41,016
41,016
42
Other
0
467
43
Bad Debt Expense
8,923
17,035
44
Miscellaneous Expense
2341
3300
45
Contingency
0
0
46
Administrative Allocation
0
0
1992 GDU Adj. 12 Months
County
Total Water & Sewer
Actual Ending 9/30/93
Adjustments
Under County Ownership
481,794 742,000
(36,776)
(1)
705,224
861300 1375,000
(245379)
(1)
1,129,621
38,436
0
(2)
38,436
0
0
(3)
0
75,000
0
(4)
75,000
1343,094 2,230,436 (282,155) 1,948,281
1343,094 2,230,436 (282,155) 1,948,281
321,788 229,262 113,794 (5) 343,056
0
0
0
0
38,642
37,883
55,995 (6)
93,878
0
26,192
0 (6)
26,192
0
0
0
0
0
0
54,750 (7)
54,750
101,209
102,771
9,113 (8)
111,884
0
0
0
0
959
2,094
0 (9)
2,084
258386
62,051
0 (10)
62,051
0
69,898
(45,794) (11)
23,104
0
122,000
0 (12)
122,000
0
0
50,000 (13)
50,000
0
0
10,000 (14)
10,000
196
0
7,125 (15)
7,125
85,000
384,906
(384,906) (16)
0
0
0
24,000 (17)
24,000
132
1,950
0 (18)
1,950
0
0
(19)
0
0
0
(20)
0
0
0
0 (21)
0
0
0
5,000 (22)
5,000
27,006
26,565
1,072 (23)
27,637
0
0
0 (24)
0
0
0
0 (25)
0
37,982
38,779
(38,779) (26)
0
11,037
19,423
0 (27)
19,423
0
0
1,000 (28)
1,000
0
0
16,000 (29)
16,000
0
0
2,000 (30)
2,000
0
0
0 (31)
0
0
0
700 (32)
700
0
0
1,410 (33)
1,410
7338
0
0 (34)
0
0
0
0 (35)
0
17,659
22,442
0 (36)
22,442
767
9,125
0 (37)
9,125
0
0
51,841 (38)
51,841
0
0
51,841 (39)
51,941
47 Sub -Total Utility Expense 869,995 961,946 908,091 1,154,331 (13,840) 1,140,491
48 Utility Operating Income 416,220 404,411 435,003 1,076,105 (268315) 807,790
Please See Attached Page for Footnotes
SILVER SPRINGS SHORES
HISTORICAL FINANCIAL AND CONVERSION
TO COUNTY OWNERSHIP
(1) Adjusted to reflect approved rates. Assumes the engineer's will verify or provide
adjustments to the revenue.
(2) The following was provided by GDU as a breakdown of the miscellaneous revenue:
Fire Service 22,605
(agreements with 17 commercial property owners for fire protection both
6 inch and 8 inch meters)
Perry Lease Agreement 6,690
(agriculture lease with Juddy Perry for 120 acres at $15.00 per acre)
Turn on/off fees and
Developer Agreements 9J41
TOTAL
38,436
(3) Provided in the event the County institutes a rate indexing policy.
(4) Change to reflect (i) annual debt service reserve earnings based on the yield of a 5 year
treasury
Estimated Debt Service Reserve Fund
Estimated Earnings Rate
Annual Debt Service Reserve Earnings
Estimated Sinking Fund Balance
Estimated Earning Rate
Annual Sinking Fund Earnings
TOTAL EARNINGS
(To be provided when final net revenue number is available)
(5) Reclassified $45,794 from "Maintenance - Labor" to "Salaries." PBS&J provided an
estimate of $50,000 per year for a utility director position. These assumed the position
would require a registered professional engineer. Additionally an accounting position
was added with an estimated salary of $18,000.
GDU provided the following as the positions included in the Salaries for the Silver
Springs Shores Utility:
Community Superintendent
$34,295
Coordinator I
26,395
Customer Service Rep III
19,115
Customer Service Rep I
22,381
Shift Operator B
24,170
Field Service Rep 11I
20,072
Line Maintenance Tech I
26,395
Maintenance Mechanic II
24,981
- 1 -
Shift Operator C 24,170
Shift Operator C 23,650
Chief Operator B 29.432
TOTAL $275,056
(6) Joseph Cone, County Administrator provided a figure of 35% as the cost of benefits
based on salary. This includes: (i) health insurance, (ii) retirement, (iii) workman's
compensation, and (iv) FICA.
(7) Although Utility currently disposes sludge at no cost, a budget should be established in
the even that is nor loner available. PBS&J has estimated that at a rate of 5,000 gallons
per day of sludge generation, the cost of sludge hauling and disposal is approximately
$0.03 per gallon, resulting in a budget of $54,750 per year. Provided by PBS&J.
(8) Purchased power has fluctuated over the past few years. Although the proposed budget
is similar to last years actual expense, we suggest average 1991 and 1992 ($122,558 +
$101,209/2 = $111,884). Provided by PBS&J.
(9) The cost of chemicals seems reasonable. Provided by PBS&J.
(10) The cost of material and supplies seems reasonable. Provided by PBS&J..
(11) Reclassified $45,794 from "Maintenance - Labor" to "Salaries."
(12) Assumes no adjustment required.
(13) Estimate for a typical budget for the Utility is estimated as $50,000. This would cover
the typical expenses related to permit renewals, attendance at regulatory and other
meetings, and design of extensions to the system. Provided by PBS&J.
(14) Thomas Klinker, County Finance Director provided estimate.
(15) Estimate based on a similar size system.
(16) The Management Fees related to the services provided through GDU's office in Miami.
The Management fee included (i) management salaries and benefits, (ii) stationery and
supplies, (iii) telephone equipment, (iv) postage and freight, (v) travel and
entertainment, (vi) subscriptions, (vi) trade and business memberships, (vii) leased
vehicles, (viii) outside contractual services, (ix) bank fees, (x) accounting and collection
expense, (xi) misc. expenses. These expenses have been estimated and provided in the
appropriate line items.
(17) The County will likely need the services of a customer billing service to send out the
water and sewer bills. From investigations into similar services, the budget for this
service would be approximately $0.50 per month per account. Assuming there are
about 4,000 account would result in a monthly billing cost of $2,000, or about $24,000
per year. Provided by PBS&J.
(18) Assumes no change required.
(19) <<To be provided by Charles Fancher»
(20) <<To be provided by Charles Fancher»
-2-
(21) <<To be provided by Charles Fancher»
(22) The utility will also likely have some rental of equipment, probably in the order of
$5,000 +/-. Provided by PBS&J.
(23) Assumes the continued trend in the cost of maintaining a rental fleet. An average trend
was determined from the historical data and the County's operating was adjusted
accordingly.
(24) Will require County's Risk Manager to review. Figure to be provided 9/10/93.
(25) Will require County's Risk Manager to review. County estimate to be provided
9/10/93.
(26) The County categories this with the employee benefits.
(27) GDU's cost for property insurance. County estimate to be provided 9/10/93.
(28) Estimated based on a similar size system.
(29) Assumes: (i) water and sewer charges are billed together
(ii) all sewer customers have water service
(iii) 4,000 customers receive one bill each month for 48,000 bills per year
(iv) 48,000 X $0.29 = $13,920
(v) other misc. postage and freight = $2,080
TOTAL = $16,000
(30) Estimated based on a similar size system.
(31) County estimate to be discussed.
(32) Estimated based on a similar size system.
(33) Estimated based on a similar size system.
(34) Assumes no Regulatory Commission Expenses under County ownership.
(35) Assumes no Regulatory Commission Expenses under County ownership.
(36) Assumes the continued trend for bad debt expenses.
(37) Miscellaneous expenses seem reasonable. The contingency will satisfy any additional
extraordinary expenses not addressed by this budget. Provided by PBS&J.
(38) Assumes the County will charge the enterprise fund for the services of: (i) County
Administration, (ii) Purchasing, (iii) Finance, etc. This is assumed to be 5% of the
systems total expenses.
(39) Assumes the Enterprise Fund will have a contingency based on the County's current
policy of 5% to 7% per fund. Information provided by Thomas Klinker, County
Finance Director.
-3-
s
LAKE HILLS PLANT AND WELLS
Well No. 1
Central Florida Well Drillers $72,303
(original well)
Meridith Corporation $102,101
(Deeper well)
Sunshine Building & Dev. Corp. $32,638
(Piping and controls)
Cal on Carbon Corp $12,500
(Hold Granalar Carbon Absorption
System for 2 1/2 months)
Sub -total $219,542
Well No. 2
Meridith Corporation $213,150
(Drill well)
Sunshine Building & Dev. Corp. $65,695
(Piping and controls)
Sub -total $278,845
Plant, Phase I
Purchase Used Plant $111,700
Sunshine Building & Dev. Corp. $151,631
(Transport and install plant,
grade berms, connect piping)
Hooper Concrete $8,150
Don's Sod $22,691
Sub -total $294,172
-W , I
m
Miscellaneous small contracts:
B & H Sales $42
C & A Alarm Systems $125
Davis Excavation $1,100
Ringhaver $288
Thompson Electric $2,436
Classic Fence $2,752
Greater Construction Corp. $1,600
Joirdano Painting Company $1,200
Sub -total $9,543
Capitalized Interest
1989 512,759
1990 $12,132
$24,891
TOTAL $826,993
WATER SYSTEM SUMMARY
GREATER HILLS
JULY 1993
SYSTEM:
PLANT, PHASE 1
DISTRIBUTION - GREATER HILLS (PHASE I - IV)
DISTRIBUTION - GREATER HILLS (PHASE V) (ESTIMATED)',P,ero3�- ss
MAIN TO GREATER PINES
PLANT IMPROVEMENTS (ESTIMATED)
DISTRIBUTION - GREATER PINES (PHASE I)
ADD (DEDUCT):
--------------
ENGINEERING AT 10% ti
LAND VALUE - 2.43 ACRES AT $25,720 AN ACRE (PLANT)
LAND VALUE - 1.32 ACRES AT $25,720 AN ACRE (YELL NO. 2)
o,. j - PERMITS 3 TESTING AT 2%
t,-t, RECOVERY OF PRIOR PERIOD OPERATING LOSSES
USED EQUIPMENT IN PLANT PHASE I
CONNECTION FEES COLLECTED (301)
ENTREPRENEURIAL COORDINATION FEE AT 10%
DEPRECIATION - 2 YEARS (30 YEAR BASE)
TOTAL COST INDICATION
RETURN ON INVESTMENT AT 101
INDICATED MARKET VALUE
w
� "S�
,-
D�
ORIGINAL
UTILITY
ADJUSTED
PROPOSAL
ADJUSTMENTS
VALUE
498,000
1 R, 326,840 (A)
824,840
405,000
` 09- 4 70) (A)
366,530
66,000 (8)
66,000
259,000
6,824 (C)
265,824
385,000
385,000
77,764
-----------
-----------
77,764
1,624,764
361,194
-----------
11985,958
3 8 aw). (x.., .
1t i9, 4�8
162,476
36,119 (D)
198,596
62,500
62,500
33,951,(E)
33,951
32,495
7,224.0)
39,719
107,751 (F)
107,751
(100,000)
100,000 (G)
0
(162,540)
162,540 (H)
0
242,847 (1)
242,8
(108,318)
-----------
(24,079)(D)
-----------
(1321397)
(113, 387)
-----------
666,353
-----------
-----------
552,966
1,511,380
.1,027,547
-----------
2,538,926
401,936 (J) 401,936jft
---------------------------------
1�511,380 1,429,483 2,940,863
WATER SYSTEM SUMMARY
GREATER HILLS
JULY 1993
(A) TO.ADJUST TO HISTORICAL COST
(B) TO INCLUDE GREATER HILLS PHASE V DISTRIBUTION
(C) TO REFLECT CHANGES IN THE CONTRACT PRICE
(D) TO ADJUST TO RECALCULATED AMOUNT
(E) TO INCLUDE WELL NO. 2 LAND
(F) TO INCLUDE THE COSTS OF START-UP PERIOD LOSSES (ESTIMATED THROUGH
SEPTEMBER 30, 1993)
(G) DECREASED VALUE OF PURCHASING USED EQUIPMENT ALREADY
REFLECTED IN HISTORICAL COST AMOUNTS
(H) NOT RELEVANT IN DETERMINING MARKET VALUE
(I) TO INCLUDE AN ENTREPRENEURIAL COORDINATION FEE. THIS FEE REPRESENTS
AMOUNTS THAT WOULD BE CHARGED TO THE UTILITY FOR PACKAGING AND
MANAGING CONSTRUCTION OF THE UTILITY PLANT AS WELL AS SETTING RATES
AND ESTABLISHING THE UTILITY'S FRANCHISE AREA AS APPROVED BY THE
FLORIDA PUBLIC SERVICE COMMISSION. AS A WATER PLANT IS SPECIALIZED,
10% OF ALL COSTRUCTION COSTS IS A CONSERVATIVE LEVEL OF ENTREPRENEURIAL
COORDINATION FEE FOR THIS PROPERTY.
(J) TO INCLUDE A RETURN ON INVESTMENT TO REFLECT THE VALUE OF THE PLANT
AT A PARTICULAR POINT IN TIME. BASED ON THE AUTHORIZED RATE OF RETURN
OF 111 AS SET BY THE PUBLIC SERVICE COMMISSION, A 101 RATE IS CONSERVATIVE.
Greater Hills Water System
Summary
m:
Plant, Phase I 498,000
Distribution - Greater Hills 405,000
Main to Greater Pines 259,000
Plant Improvements 395,000
Distribution - Greater. Pines, Phase 1 770764
Add:
Engineering at 10 % 1621,476
Land Value (Plant) 62,500
Permits and Testing at 2% 32,495
Dedu :
Used Equipment in Plant Phase I (100,000)
Depreciatio 2 years (30 yr, base) (108,318)
Connection Fees Collected (301) (162,540
Estimated Value
1,624,764
257,471
370,858)
1,511,380
GREATER HILLS DISTRIBUTION SYSTEM
931520.00
PHASE 1, 2 & 3
A. PVC PIPE C-900 SDR 21
1.
14"
1332
FT
@
$21.00/FT
$ 27,972.00
2.
12"
4692
FT
@
$18.00/FT
84,856.00
3.
10"
1070
FT
@
$15.00/FT
16,050.00
4.
8"
3243
FT
@
$12.00/FT
38,916.00
5.
6"
3310
FT
@
$9.00/FT
29,790.00
6.
4"
1827
FT
@
$6.00/FT
10,962.00
208,546.00
B.
DUCTILE IRON
(D.I.) PIPE
1.
14"
102
FT
@
$39.00/FT
$ 3,978.00
2.
12"
272
FT
@
$31.62/FT
8,600.64
3.
10"
512
FT
@
$25.11/FT
12,856.32
4.
8"
446
FT
@
$19.53/FT
8,710.38
$ 34,145.34
C. STEEL CASING/SLEEVES
1.
18"
(1211)
112
FT
@
$27.90/FT
$
3,124.80
2.
16"
(10")
39
FT
@
$25.11/FT
979.29
3.
14"
(8")
344
FT
@
$22.32/FT
7,678.08
4.
12"
(6")
52
FT
@
$20.46/FT
1,063.92
$
12,846.09
D.
VALVES
1.
14"
1
EA
@
$2000.00/EA
$
2,000.00
2.
12"
8
EA
@
$1200.00/EA
9,600.00
3.
10"
5
EA
@
$1000.00/EA
5,000.00
4.
8"
18
EA
@
$ 800.00/EA
14,400.00
5.
6"
5
EA
@
$ 750.00/EA
3,750.00
6.
4"
6
EA
@
$ 600.00/EA
3,600.00
$
38,350.00
E.
D.I.
TEE
1.
14 X
8
1
EA
@
$735.00/EA
$
735.00
2.
12 X
12
1
EA
@
$600.00/EA
600.00
3.
12 X
8
1
EA
@
$600.00/EA
600.00
4.
12 X
6
1
EA
@
$600.00/EA
600.00
5.
12 X
4
1
EA
@
$600.00/EA
600.00
6.
10 X
10
3
EA
@
$475.00/EA
1,425.00
7.
10 X
8 '
2
EA
@
$475.00/EA
950.00
8.
8 X
8
3
EA
@
$300.00/EA
900.00
9.
8 X
6
1
EA
@
$300.00/EA
300.00
10.
6 X
4
2
EA
@
$220.00/EA
440.00
$ 7,150.00
1
1➢
F. D.I. CROSSES
1.
12X12X8
3
EA Q
$900.00/EA
$
2,700.00
2.
1OX10X10
2
EA @
$725.00/EA
1,450.00
$
4,150.00
G.
D.I. REDUCER
1.
8 X 6
6
EA @
$200.00/EA
$
1,200.00
2.
6'X 4
2
EA @
$150.00/EA
300.00
$
1,500.00
H.
BLOW OFFS
1.
2"
11
EA @
$350.00/EA
$
3,850.00
I.
FIRE HYDRANT ASSEMBLIES
25
EA Q
$1500.00/EA
37,500.00
J.
90' ELLS - D.I.
1.
14"
2
EA Q
$590.00/EA
1,180.00
TOTAL
PHASE 1 - 3
$349,217.43
2
s
PHASE IV
A. PVC PIPE C-900 SDR 21
1.
10"
2.
8"
3.
6"
4.
4"
B. VALVES
1.
loll
2.
8"
3.
6"
4.
4"
C. D.I. TEES
1. 10 X 10
2. 10 X 6
3. 8 X 6
4. 6 X 4
D.
1.
2.
D.I. REDUCERS
10 X 8
6 X 4
BLOW -OFFS
211
FIRE HYDRANT ASSEMBLIES
D.I. ELLS
1275 FT @ $15.00/FT
687 FT @ $12.00/FT
675 FT @ $ 9.00/FT
525 FT @ $ 6.00/FT
$ 19,125.00
8,244.00
6,075.00
3,150.00
$ 36,594.00
2 EA @ $1230.00/EA $ 2,460.00
1 EA @ $ 900.00/EA 900.00
4 EA @ $ 625.00/EA 2,500.00
1 EA @ $ 580.00/EA 580.00
$ 6,440.00
1 EA @ $ 475.00/EA $ 475.00
1 EA @ $ 475.00/EA 475.00
2 EA @ $ 300.00/EA 600.00
1 EA @ $ 220.00/EA 220.00
$ 1,770.00
1 EA @ $ 250.00/EA $ 250.00
2 EA @ $ 150.00/EA 300.00
$ 550.00
4 EA @ $ 350.00/EA $ 1,400.00
4 EA @ $1500.00/EA $ 6,000.00
8" X 45' 6 EA @ $ 300.00/EA
TOTAL PHASE IV
TOTAL PHASE 1, 2, 3 & IV
A
$ 1,800.00
$ 54,554.00
$403,771.43
GREATER HILLS TO GREATER PINES
(ENGINEER'S ESTIMATE)
A. DUCTILE IRON (D.I.) PIPE
1. 16" 7227 FT @ $45.50/FT $328,828.50
B. STEEL CASING/SLEEVES
1. 30" 281 FT @ $55.00/FT $ 15,455.00
C. VALVES
1. 16" 5 EA @ $3300.00/EA $ 16,500.00
2. 12" 2 EA @ $1560.00/EA 3,120.00
$ 19,620.00
D. TEES (D.I.)
1.
16 X
16
2
EA
@
$1025.00/EA
$
2,050.00
2.
16 X
12
2
EA
@
$1025.00/EA
2,050.00
E.
D.I.
REDUCER
1.
12 X
16
1
EA
@
$ 350.00/EA
$
350.00
F.
BLOW -OFF
1.
2"
2
EA
@
$ 350.00/EA
$
700.00
G.
D.I.
ELLS
1.
16 X
90
3
EA
@
$670.00/EA
$
2,010.00
2.
16 X
45
10
EA
@
$ 670.00/EA
6,700.00
3.
12 X
45
2
EA
@
$ 375.00/EA
750.00
$
9,460.00
H.
D.I.
PLUGS
1.
16"
2
EA
@
$ 250.00/EA
$
500.00
2.
12"
1
EA
@
$ 200.00/EA
200.00
$ 700.00
I. AIR RELEASE VALVE 2 EA @ $1500.00/EA $ 3,000.00
TOTAL $382,213.50
4
r
3
GREATER HILLS
WATER SUPPLY, TREATMENT & STORAGE
A. Well No. 1
1. Original well & Pumps (5651) $ 72,000.00
2. Modify Well 30,000.00
TOTAL $102, 000. 00 '�`�✓'
B.
y �C.
✓D.
Q E.
�F.
G.
�H.
I.
J.
K.
L.
M.
Well No. 2
GRD Storage Tank
Aerator
Hydro & Grd Storage
Service Pumps
Plant Piping
C12 & Booster Pump
Miscellaneous Concrete Work
Generator Set
Electric Switch Gear
Air Compressor
Plant Site Piping
Lump
Sum
2 EA @ $40000/EA
Lump
Sum
Lump
Sum
Lump
Sum
Lump
Sum
Lump
Sum
Lump
Sum
Lump
Sum
Lump
Sum
Lump
Sum
Lump
Sum
5
$125, 000 . 00
$ 80,000.00
$ 13,000.00
$ 42,000.00
$ 7,600.00
$ 5,500.00
$ 13,500.00
$ 10,000.00
$ 38,000.00
$ 35,000.00
$ 1,300.00
$ 25,000.00
$497,900.00
October 6, 1993
Dear Proposer:
On behalf of Marion County, Florida (the "County"), Public Financial Management,
Inc. ("PFM") is distributing the attached Request for Qualifications/Proposals
("RFQ/RFP") to investment banking firms to serve as senior underwriter for the acquisition
financing of a privately owned water and sewer utility system. The County has reached a
tentative agreement with the owner to purchase Silver Springs Shores Water and Sewer
Utility. The Plan of Finance has already been formulated and structured.
The County's Selection Committee intends to review the qualifications and fee
proposals of the responding firms, and provide a recommendation to the Board of County
Commissioners (the "Board"). The Board will then make the final selection Tuesday,
October 19.
The RFQ/RFP includes specific questions and requests for information. Please
complete both sections of the RFQ/RFP including the fee proposal. Responses to the
RFQ/RFP are due by 1:00 p.m. on October 14, 1993. Copies of your proposal, in the
amounts specified should be delivered to the individuals listed below:
Joseph Cone, County Administrator
Marion County
601 S.E. 25th Avenue
Ocala, Florida 32671
(Ten Copies)
Thomas Klinker, Finance Director
Marion County
110 N.W. 1st Avenue
Ocala, Florida 34475
(One Copy)
Ms. Lavon Wisher, Managing Director
Public Financial Management, Inc.
5900 Enterprise Parkway
Fort Myers, FL 33905
(One Copy)
Any questions with respect to the RFQ/RFP should be directed to Lavon Wisher or
Stacey Donnelly, of PFM, at (813) 693-7117. On behalf of the County, thank you for
your consideration of this proposal.
Sincerely,
PUBLIC FINANCIAL MANAGEMENT, INC.
Lavon P. Wisher
Managing Director
Enclosure
MARION COUNTY, FLORIDA
QUALIFICATION/PROPOSALS
TO SERVE AS
SENIOR MANAGING UNDERWRITER
FOR THE
PROPOSED ACQUISITION
OF A PRIVATELY OWNED
WATER AND SEWER SYSTEM
Issue Date: October 6, 1993
Due Date: October 14, 1993
General Information
Submission of Proposals
Marion County, Florida (the "County") is soliciting proposals from investment
banking firms to serve as senior managing underwriter for the proposed financing of the
acquisition of Silver Springs Shores Water and Sewer Utility.
The specified number of written proposals should be submitted to:
Joseph Cone, County Administrator
Marion County
601 S.E. 25th Avenue
Ocala, Florida 32671
(Ten Copies)
Thomas Klinker, Finance Director
Marion County
110 N.W. 1st Avenue
Ocala, Florida 34475
(One Copy)
Ms. Lavon Wisher, Managing Director
Public Financial Management, Inc.
5900 Enterprise Parkway
Fort Myers, FL 33905
(One Copy)
To be considered, copies of the proposals must be delivered to each of the above
addresses and received no later than 1:00 p.m. on October 14, 1993. Late proposals will
not be accepted.
Additional Information
It is the responsibility of the proposer to inquire about and clarify any aspect of the
RFQ/RFP that is not understood. Questions and request for clarification should be directed
to either Lavon Wisher or Stacey Donnelly at (813) 693-7117.
Proposal Timetable
The County has established the following preliminary timetable for selection of the
senior managing underwriter. This schedule is subject to change.
October 6, 1993 RFQ/RFP Issued
October 14, 1993 Proposals Due
October 15th and 18th Underwriter(s) ranked by selection committee
and submitted to the Board
October 19, 1993 Underwriter's selection approved by
Board of County Commissioners (interviews if
necessary)
Page 1
General Terms and Conditions
Proposals should be prepared simply and economically, and should provide
straightforward and concise responses which satisfy the requirements of this RFQ/RFP.
Emphasis should be placed on the completeness and clarity of the content. The County
shall not be liable for any expenses incurred in the preparation or presentation of the
proposals.
Proposers, their agents and associates shall refrain from contacting or
soliciting any County Commissioners, Selection Committee members or
other County officials regarding this RFQ/RFP during the selection
process. Failure to comply with this provision may result in the
disqualification of the proposer. All questions should be directed to Public
Financial Management, Inc. the County's Financial Advisor.
Proposal Format
Proposals should conform to the following specifications:
• Responses should be submitted consistent with the terms and conditions of this
RFQ/RFP, as further described herein.
• No printed brochures or materials, other than written responses to the questions
outlined in this RFQ/RFP should be submitted.
Joint Proposals Accented
Joint proposals from more than one underwriting firm will be accepted. In these
instances, the book -running manager must be designated in the proposal. Further, the
County will retain the right to designate co -managers and other members of the syndicate or
selling group.
onditions of Aw
The County intends to award a contract to the firm whose proposal, in the County's
sole opinion, is most advantageous to the County based upon the criteria set forth in the
RFQ/RFP. The County reserves the right to reject any and all proposals received and to
request clarification of information from any source. The County also reserves the right to
waive any irregularity or informality if it is deemed to be advantageous to do so.
Page 2
REQUEST FOR QUALIFICATIONS
Specific Response Requirements
Each response should be accompanied by a letter of transmittal not exceeding two (2)
pages which summarized key points of the response and which is signed by an officer of
the firm who is responsible for committing the firm's resources.
Responses should address the following questions or requests for information and be
organized so that the specific questions or requests for information each begin on a new
page with the question repeated at the top of the page.
1. Tax -Exempt Securities Sales Experience. For the years 1991, 1992 and 1993, please
provide, in tabular form, the volume and percent of your firm's completed sales of tax-
exempt securities in the following categories:
A.
Institutions
B.
Bond Funds
C.
Retail
D.
Other (specify)
E.
Total
2. Capital Position. Please provide a table that reflects the most recent available data
(include date) for your firm's total capital and excess net (uncommitted) capital.
3. Florida Senior Manager Experience. Provide a
experience as senior, book running manager for Florid
1991. For each transaction, please provide the following:
A.
Date of issue
B .
Name of issuer
C.
Name of issue
D.
Par amount of bonds
tabular listing of your firm's
a bond issues since January 1,
Your response should also include the following information:
E. Total number of senior managed Florida financings during this period
F. Total par amount of senior managed Florida financings during this period
4. Utility Acquisition Experience. Provide a tabular listing of your firm's experience as
senior, book running manager for all successfully completed utility acquisition financings
since January 1, 1991. This listing should include:
A. Date of issue
B. Name of issuer
C. Par amount of issue
D. Credit enhancement and provider (if applicable)
E. Rating
F. Debt instrument (variable vs. fixed rate, general obligation vs. revenue pledge,
etc.)
Page 3
5. Utility Acquisition References. Provide references for three (3) of the issues listed in
your response to Question #4. References should include name, title and phone number
for each contact person. The County intends to contact these references.
6. Innovative Techniques. Provide three examples of innovative techniques your firm
has used in either utility acquisition financings or water and sewer financings.
7. Personnel. Identify the organizational structure through which the County's
engagement will be managed by your firm. Identify and provide the background of the
senior banker who will assume the day-to-day and on -site responsibilities for managing
and supporting the County's financing(s). This is the individual who will be expected to
regularly represent your firm at all financing meetings. Please indicate others who will
serve the County directly with banking responsibility with respect to structuring, pricing,
marketing and re -marketing. Brief biographies of key banking and marketing personnel
should be included.
8. Management Fee/Bond Allocation. If more than one senior managing underwriter is
selected, discuss how the management fee will be divided. Also, discuss how the County
can achieve the lowest interest cost for its financing while trying to assure fair treatment
relative to the allocation of bonds among the underwriting group.
9. Marketing Strategy_. Provide a brief discussion of your firm's marketing strategy and
distribution capabilities of tax-exempt securities as they apply to the County's financing.
10. Underwriters' Counsel. Provide the name and location of three firms, ranked in order
of preference, which you would propose to serve as Underwriters' Counsel for the
County's engagement.
11. Disclosure Requirement. Disclose any company or person, other than a bonafide
employee working solely for the underwriting firm, that your firm has retained to solicit or
secure any agreement or contract for underwriting services. Also, disclose if your firm has
paid or agreed to pay any person, company, corporation, individual or firm, other than a
bonafide employee working solely for the underwriting firm, any fee, commission,
percentage, gift or other consideration contingent upon or resulting form the award of any
type of underwriting serviced agreement or contract. For failure to disclosure this
information the County shall have the right to terminate any type of contract or agreement
without liability at its sole discretion, to deduct from the contract or agreement price, or
otherwise recover, the full amount of such fee, commission, percentage, gift or
consideration.
12. Public Entity Crimes. Provide a signed copy of the attached Public Entity Crimes
statement as required under Chapter 287, Florida Statutes, Section 287.133 (3)(a).
Describe any pending or threatened securities litigation or regulatory action involving
your firm in the last five (5) years, and the resolution thereof. Provide a statement of
assurance that your firm or personnel are not presently being investigated or in violation of
Page 4
any statutes or regulatory rules, including those of the Securities and Exchange
Commission, Municipal Securities Rule making Board, National Association of Securities
Dealers, etc.
13. Miscellaneous. Provide additional information, if desired, relative to your firm that
will benefit the County (please limit to 2 pages).
ScoDe of Service
The senior managing underwriter may participate with the County staff, financial
advisor and bond counsel in structuring the bond issue. It is expected that the senior
managing underwriter will be responsible for the preparation of the preliminary official
statement with respect to the sale of the bonds or in selection of the underwriters' counsel
that would prepare such official statement.
On any financing, any co -managing underwriters will be responsible for assisting the
senior managing underwriter in the marketing and distribution of the County's financing.
The County reserves the right to dictate the level of involvement on each financing of any
co -managing underwriter.
Evaluation Criteria
The evaluation of RFQ/RFP will be based on the following criteria:
• Experience of the individuals assigned to the project team.
• Experience of the firm with each type of financing.
• Marketing capabilities of the firm.
• Responsiveness to the specifications of the RFQ/RFP
• Client references
Selection Criteria
All responses submitted prior to the specified deadline will be reviewed by the County
and its selection committee. The information requested by the RFQ/RFP will be evaluated
to identify the firms that are best qualified to serve the County as a senior managing
underwriter.
Page 5
LAKE HILLS UTILITIES, INC.
% aX
CONSUMPTION I REVENUE COMPARISON REPORT
Consumption
Water Revenue
Customer Count
inz----------
od
-------------- ---- -----------
1991 I?Wnpeo 1992 •P,y,p�p 1993
-------------
AAMfe0 1991
----- ------
1992
------
1993
-6,232
----------------------------
1991
-
1992
1993
15
------------
1,706,5501.4.62 4,754,810'Z.N7 3,382,900
2 3Z L 2,928
7,169
113
193
263
15
1,453,6101162 3,282,030 2.41$ 2,593,280
1.91� 2,700
5,483
5,305
III
190
267
15
1,396,1801.4i¢ 3,950,8303,61,1 2,I93,330
2.4s4- 2,744
5,292
4,909
123
195
275
15
I,405,3971.f49 4,806,040 3,%Sl 3,194,410
4-.52.4 2,807
7,420
6,178
129
215
284
15
2,881,7134.212 5,076,160_9.1b;-737Z�,000
4,4I6'
7,757
1p,cto4-
I37
218
30.3
15
3,429,790 2.%-L12,633,22d 3.120
5,188
I6,395
137
229
15
2,629,240 2-W 4,968,030 5,Z45
4,342
7,783
147
236
I5
2,498,520 2-:& S 5,791,760 3,545
4,380
8,748
166
237
-15
2,763,7805•1922,953,670 3,¢t3
4,709
5,643
175
247
15
4,420,930 2.1Z9 3,660,700 3,62?
6,546
6,463
164
253
I5
3,274,300 2.242.4,253,450 3 449
5,375
7,170
174
254
15
3,336,5004,W'? 2,929,330 Z•�g'}-
5,431
5,688
_
177
257
QED
30,bL 4' ,2�3,�
►1�22o,oec
lab�510 SR,o6o,O3�
11�3b5�gZo
I
In
J LAKE HILLS UTILITIES
WELLS #1 #2
Constructed 1989 1990
Depth (Feet) 1315 1310
Diameter (Inches) 10 18
Pump (GPM) 1250 1250
Motor (HP) 60 60
Yield (MGD) 1.8 1.8
GROUND STORAGE TANKS
Description
Capacity (Gals)
HIGH SERVICE PUMPS
Manufacturer
Type
Capacity (GPM)
Motor
Rated HP
HPT Steel
2,449 17,265
Peerless
Centrifugal
245
Century
15
WATER TREATMENT FACILITIES
Type Package
Capacity 700,000 GPD
Steel
50,000
Peerless
Centrifugal
245
Century
15
Steel
50,000
Peerless
Centrifugal
500
Aurora
30
As of April 15 had 284 meters set.
Phase 2--existing plant. Capacity--429 equivalent residential
units (ERU). Pumping capacity is limiting factor.
?' Phase 3--permanent building with three high service pumps.
Capacity--668 ERU. Storage will be the limiting factor.
Phase 4--Ground storage tank. Capacity--1371 ERU. Pumping
capacity will be limiting factor.
7toand
pansion on south side of highway 50 will require booster pumps possibly additional storage. This will be triggered by need
d serve more ERU or service at higher elevations. A second
watermain from the plant to highway 50 will be required if we
reach 1250 ERU on the south side of highway 50 or a commercial
connection.
Can go to 3744 ERU by changing well pumps, adding storage, add a
1500 GPM high service pump and changing a 750 GPM pump to a 1500
GPM.
4TER - RESIDENTIAL SERVICE
Meter Size
5/8 x 3/4"
1"
211
Charge per
1,000 gallons
GENERAL SERVICE
Meter Size
5/8 x 3/4"
1"
2"
311
4"
Charge per
1,000 gallons
GUARANTEED REVENUE
CHARGE
BFC
$ 9.11
22.78
45.55
72.88
1.13
BFC
$ 9.11
22.78
45.55
72.88
145.76
227.75
1.13
9.11 ERC
MISC. SERVICE CHARGES
Initial Connection $ 15.00
Normal Connection 15.00
Violation Reconnection 15.00
CUSTOMER DEPOSIT
Meter Size
5/8 x 3/4"
1"
1}„
2"
Residential
$ 40.00
65.00
110.00
16o.00
WATER METER INSTALLATION FEES
Meter Size
Charge
5/8 - 3/4"
$ 73.00
1"
123.00
1P
325.00
2"
405.00
Over 2"
Cost
METER TEST
Meter Size Charge
5/8 x 3/4" $ 20.00
1 x 1" 25.00
2" Cost
' Over 2" Cost
PRIVATE FIRE PROTECTION -
ANNUAL CHARGE
Line Size Rate
4" $ 911.00
6" 1 , 822.. 00
8" 2,915.20
10" 4,19o.6o
12" 7,834.6o