FGUA PURCHASE OF LINDRICK:  UPDATE No. 5

This is the fifth in a  series of periodic reports that FGUA Counsel, Brian Armstrong, has offered to give us. Check back regularly for the next update.

               Feb. 4, 2010
FGUA is continuing pursuit of financing for the purchase of the Lindrick system. At the last FGUA board meeting in late January, an amendment of the purchase agreement was approved which extends the date of closing to as late as March 15, 2010. However, the parties will close before that date if they are able to do so.

In the meantime, the Lindrick office move to 4516 Seagull Dr, #207, New Port Richey, is consistent with the movement of both buyer and seller toward closing on the purchase. The move is expected to be temporary since FGUA will switch all customer service, billing, etc., services to the existing FGUA office in Pasco upon closing.

We once again thank Brian Armstrong for his continued assistance in keeping us informed.

FGUA PURCHASE OF LINDRICK:  UPDATE No. 4

This is the fourth in a  series of periodic reports that FGUA Counsel, Brian Armstrong, has offered to give us. Check back regularly for the next update.

               January 7, 2010
New drafts of bond documents related to the Lindrick purchase have been distributed to rating agencies and bankers. FGUA representatives have meetings with rating agencies in New York Friday, Jan.8. It likely will take 2 weeks for ratings to be issued after those meetings.

Another "due diligence" physical plant inspection of the Lindrick facilities will be done the first week of January. FGUA, represented by Government Services Group and US Water personnel, will be continuing preparation of documents necessary for closing and will review the Lindrick operations and recent improvements during the remainder of this week.

There are many, many documents involved in the purchase of the Lindrick assets, and just as many documents involved in the financing of the purchase price and capital improvements. The FGUA board will receive these documents at its Board meeting 1/21 for consideration and approval so that the Chair or her designee will be authorized to sign all of the documents on behalf of the FGUA.

FGUA representatives and the City of New Port Richey representatives need to finalize a water purchase agreement to allow purchases from the city (primarily to meet additional water needs if growth starts to occur in any material way in the future). The closing can occur without this agreement, however, since the water supplies from the city are not imperative.

Additional note: FGUA purchased the five smaller "Consolidated Systems" on 12/23/09.

FGUA PURCHASE OF LINDRICK:  UPDATE No. 3

This is the third in a  series of periodic reports that FGUA Counsel, Brian Armstrong, has offered to give us. Check back regularly for the next update.

               Dec. 3, 2009
The Pasco County Board of County Commissioners unanimously approved the FGUA purchase of Lindrick on December 1.
The FGUA signed the purchase contract Dec. 3, 2009.
Closing should occur before January 31, 2010.

Necessary engineering, financial and other reports and information are in the hands of the bankers now. FGUA is hopeful, and are attempting to do everything possible, to get an "A" rating from rating agencies. An "A" rating will provide FGUA with the lowest interest rates possible.

FGUA is doing final review of all documents, making sure all regulatory agencies are informed of purchase and working with the county and all others concerned to actually complete the purchase as soon as possible.

From:  Lindrick Services Corporation

To: All Residents of Gulf Harbors, Gulf Harbors Woodlands, Gulf Landings (Sea Forest)

This "Precautionary Boil Water Notice" dated November 23, 2009, is hereby RESCINDED following the satisfactory completion of the bacteriological survey showing the water is safe to drink.

If you have any questions, please contact Helen McNeil at 727-848-1165.

FGUA PURCHASE OF LINDRICK:  UPDATE No. 2

This is the second in a  series of weekly reports that FGUA Counsel, Brian Armstrong, has offered to give us. Check back regularly for the next update.

               Nov. 20, 2009
On Thursday, Nov. 19, the FGUA (Florida Governmental Utilities Authority) unanimously approved the acquisition of Lindrick. This followed a public hearing where various citizens and community leaders voiced their opinions. 

According to Brian Armstrong, Counsel for FGUA, if the Pasco Board of County Commissioners approves  the acquisition at their Board Meeting on Dec. 1, 2009 and the owner of Lindrick, Mr. Joseph Borda, agrees to the financing language, FGUA will be looking to close the deal probably in January. Lindrick's owner has already signed the purchase agreement.

Another piece of information: the 12" blue pipe we see being installed on the southwest corner of Rte. 19 and Floramar Terrace is to connect a new, second water main under  Rte.19. This will improve supply reliability by providing a backup pipe in case the one existing pipe has a problem.

FGUA PURCHASE OF LINDRICK:  UPDATE No. 1

This is the first in a  series of weekly reports that FGUA Counsel, Brian Armstrong, has offered to give us. Check back regularly for the next update.

               Nov. 13, 2009
As we all know from the letters we received, the FGUA board is scheduled to decide whether to sign the Lindrick System purchase agreement next Thursday, November 19. Newspaper notice and letters to customers have been mailed to notify customers of the FGUA meeting.

The FGUA financial team is working hard to secure bond ratings and prepare for the issuance of bonds. As you know, the FGUA wants to obtain an "A" rating to lower the interest cost. Ratings are taking longer to obtain than in the past and have not yet been obtained.

Lindrick's owner has signed the purchase agreement already.

FGUA is working hard to close on the purchase by the end of December but its ability to do so depends upon the speed with which the rating agencies rate the bonds. After they are rated, the bond issuance process can take several weeks. Nobody can predict how quickly we can actually close the purchase due to today's volatile market.

We should be able to answer these questions in next week's report.

One of the year's ten best."-Ben Brantley, The New York Times. This is the play on which the film starring Meryl Streep is based.

Sat, Nov. 28 at 7PM. And, Sun, Nov. 29 at 2PM.

POTENTIAL SALE OF LINDRICK

The era of Lindrick as our purveyor of water and sewer services is likely coming to an end.

On Oct 20, 2009, the Pasco County Commissioners gave the 'go ahead' to the Florida Governmental Utilities Authority, FGUA, to complete their assessment and evaluation of the Lindrick system (known as "Due Diligence") and to present a purchase contract to the FGUA Board for approval. Even though money is 'tight' with U.S. financial markets still recovering from the severe downturn in 2008, there is hope that this purchase deal can be 'done' in the next couple of months.