HomeMy Public PortalAboutFW_ Underground Utilities- Town of Jupiter Inlet Colony
Renee Basel
From:Danny Brannon <dbrannon@bngengineers.com>
Sent:Monday, April 11, 2011 2:25 PM
To:Susan Schoettle-Gumm
Subject:FW: Underground Utilities- Town of Jupiter Inlet Colony
Attachments:image003.jpg
A good contact would be Mark Raymond, Bond Attorney for JIC.
Mark E. Raymond
4360 Northlake Boulevard
Suite 204
Palm Beach Gardens, FL 33410
Tel: 561.775.8440
Fax: 561.775.8442
Cell: 561.758.0930
Home Tel: 561.625.1561
Email: mark.raymond@mraymondlaw.com
Alt. Email: mer101559@comcast.net
Danny P. Brannon, P.E.
Brannon & Gillespie, LLC
12798 West Forest Hill Blvd, Ste 102
Wellington, FL 33414-4704
Phone: (561)795-0833 - Fax: (561) 795-5678
Website: www.BnGEngineers.com
Concerning the example below, The service lateral lines to the houses will be owned and
maintained by the Utility company. All the lines will be owned and maintained by the utilities.
The City will not be paid anything by the utility for the undergrounding.
Will these lines to the houses be owned by the homeowners? Is there a non-governmental utility involved here? Who will
own the lines themselves? I think we need to keep this focused on the undergrounding to keep within the example in
1.141-4. Here is that example:
Example (4). Payments not in respect of financed property. In order to further public safety, City Y issues tax
assessment bonds the proceeds of which are used to move existing electric utility lines underground. Although the utility
lines are owned by a nongovernmental utility company, that company is under no obligation to move the lines. The debt
service on the bonds will be paid using assessments levied by City Y on the customers of the utility. Although the utility
lines are privately owned and the utility customers make payments to the utility company for the use of those lines, the
assessments are payments in respect of the cost of relocating the utility line. Thus, the assessment payments are not
made in respect of property used for a private business use. Any direct or indirect payments to Y by the utility company for
the undergrounding are, however, taken into account as private payments.
IRS Circular 230 Disclosure: Please note that the views expressed herein or in any attachments hereto are not
intended to constitute a “reliance opinion” under applicable Treasury Regulations, and accordingly are not
intended or written to be used, and may not be used or relied upon, for the purpose of (i) avoiding tax-related
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penalties that may be imposed by the Internal Revenue Service, or (ii) promoting, marketing or recommending
to another party any tax-related matters addressed herein.
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