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e � <br /> Page 2 <br /> Mr. Robert Marty <br /> RE: Community Service Area No. 31 <br /> February 8, 2001 <br /> 1. Capacity can be purchased from an existing owner pursuant to <br /> certain parameters set forth in Resolution No. R-99-787 by the <br /> Board of Supervisors. <br /> 2. A bond for the ultimate expansion of the treatment plant can be <br /> posted. The bond amount is $620,000 and a down payment is <br /> required to be made to the County in the amount of$193,000. <br /> This is pursuant to a document entitled "Secured Deferred Sanitary <br /> Sewer Facility Expansion Agreement." <br /> 3. We can wait for another landowner to post the bond set forth in <br /> Alternative No. 2 above and proceed to connect to the services at <br /> that time. <br /> Because Alternative No. 2 above (posting a bond) appears to be impractical, we are faced with <br /> the alternative of waiting for another landowner to post a bond or purchasing capacity from an <br /> existing landowner. As have many of the other landowners in the area,we have decided to <br /> pursue Alternative No. 3 above and wait for another landowner to post the bond. Unfortunately, <br /> in choosing Alternative No. 3, we are unable to expedite the ongoing annexation until a <br /> landowner posts a bond. <br /> The reason that I have chosen to pursue Alternative No. 3 is that I had been informed by the <br /> County Public Works and LAFCO that there are potentially two property owners with proposed <br /> developments pursuant to use permits that are expiring this Spring. Unless they obtain an <br /> extension, they will need to pull a building permit to commence with their development, and will <br /> be required to post the appropriate bond to annex to CSA No. 31. Accordingly,I have been <br /> hopeful that this will be resolved at that time. <br /> Nevertheless, I have explored the possibility of a purchase of additional capacity from an <br /> existing landowner under Alternative No. 1. It was my hope that if such a purchase was <br /> economically feasible, it would help to expedite the hookup process. Unfortunately, several <br /> years ago, several landowners purchased approximately 40 acres worth of capacity for $35,000 <br /> per acre. As you can imagine, these owners desire a return on their investment in the event of a <br /> sale of sewer capacity. One such owner is willing to sell us one acre's worth of capacity for <br /> $50,000. Because of this expense, we still await action from a third party on the posting of a <br /> bond. <br />