- 7 -
Company's tariff on file with the Missouri Public Service
Commission".2
Additionally, the McArthy-Imperial agreement provided that
the escrow deposit would be credited toward the $400 per pad
"contribution in aid of construction fee" permitted by the Sewer
Service Rules. As a result, Imperial waived fees, which are
usually borne by the customer, to connect individual mobile homes
in Brookshire to the sewer system in exchange for the $200,000
escrow contribution.
According to the McArthy-Imperial agreement, Mr. McArthy
deposited the $200,000 into an escrow account. In addition, Mr.
McArthy and Interstate agreed that $100,000 of Mr. McArthy's
deposit was for the development contemplated by Interstate, with
the understanding that Interstate would later reimburse Mr.
McArthy. Pursuant to the agreement, Interstate executed a deed
of trust in the amount of $100,000 in favor of Mr. McArthy.
Interstate subsequently paid Mr. McArthy the $100,000.
Imperial contracted with McClanahan Contracting
(McClanahan), a partnership of which Mr. Fribis was a partner, to
construct the sewer line and upgrade the treatment facility at a
2 Mr. Fribis drafted the contract and often used the
terms "tap-on fee" and "contribution in aid of construction"
interchangeably. By reference to the Sewer Service Rules, Mr.
Fribis intended that the term "tap-on fee" used in the contract
would correspond to the term "contribution in aid of
construction" used in the Sewer Service Rules.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011