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COMMISSIONER SCHMUCKER ASKED "ASSUMING THAT'U.D.U. CAN <br />OBTAIN WATER FROM THE CITY OF VERO BEACHIIS THEIR.SYSTEM ADEQUATEZ" <br />DR. SMITH ANSWERED THAT THE DISTRIBUTION SYSTEM IS IN GOOD: <br />SHAPE AND ALL THE WATER METERS WILL BE CHECKED TO SEE THAT THEY ARE <br />OPERATING PROPERLY. <br />COMMISSIONER SIEBERT STATED THAT WITHOUT A QUALIFIED OP- <br />ERATOR -MANAGER THIS SYSTEM WILL NOT WORK AND HE QUESTIONED IF THE <br />COUNTY WOULD BE IN A POSITION TO MANAGE THIS SYSTEM, AND SUGGESTED <br />THE POSSIBILITY OF A MANAGEMENT CONTRACT WITH THE CITY OF VERO BEACH: <br />BEING CONSIDERED. <br />WILLIAM WEATHERS, FARMERS HOME ADMINISTRATION OFFICIAL <br />STATED THAT YOU CAN HAVE THE FINEST SYSTEM AND WITH POOR MANAGEMENT <br />IT WILL NOT SUCCEED. THIS HAD BEEN DISCUSSED AND ONE OF THE CON <br />DITIONS TO THE LOAN -GRANT APPROVAL WILL BE THAT F.H.A. MUST ENTER <br />INTO AN AGREEMENT WITH A QUALIFIED.OPERATORMANAGER. THEY WERE <br />HOPING THAT THE COUNTY WOULD AGREE TO OPERATE AND MANAGE THIS <br />SYSTEM. <br />LEON YOUNG/ MANAGER OF U.D.U. STATED THAT WHEN THEIR <br />INITIAL BUDGET WAS SET UP BY F.H.A. IT WAS BASED SOLEY ON THE <br />AMOUNT OF MONEY NEEDED TO MAKE PAYMENTS ON THE F.H.A. LOAN. As A <br />RESULT, EVEN IF THE 463 WATER USERS THEY NOW HAVE PAY THEIR MONTHLY <br />FEES 100%, THERE WOULD NOT BE SUFFICIENT MONEY TO TAKE CARE OF THE <br />OPERATING AND MAINTENANCE EXPENSES OF U.. D,U. <br />MR YOUNG STATED THAT U.D.U. HAS OPERATED IN THE RED <br />FOR THE PAST FIVE YEARS THAT THEY HAVE BEEN IN EXISTENCE. IN ORDER <br />FOR U.D.U. TO MEET THEIR FINANCIAL OBLIGATIONS THEY WILL NEED A <br />RATE INCREASE THAT WILL BE ADEQUATE TO -MAKE REPAYMENT TO F.H.A. AND. <br />TO MEET THEIR OPERATING EXPENSES. <br />COMMISSIONER MASSEY ASKED F.H.A. OFFICIALS WHAT WILL HAPPEN <br />TO THE $616,000.00 WHICH IS THE AMOUNT OF THE PRESENT LOAN TO U.D.U. <br />MR. WEATHERS STATED THAT WE WILL MAKE AN ADDITIONAL LOAN- <br />GRANT TO UP -GRADE THIS SYSTEM AND WORK WITH U.D.U. IN OPERATING AND <br />MANAGEMENT OF THIS SYSTEM. AS THE SYSTEM GROWS, WE HOPE 'IN THE FUTURE <br />TO RECOVER SOME OF THESE EXPENSES. HE CONTINUED THAT PRESENTLY WATER <br />LINES GO BY APPROXIMATELY 800 HOMES AND U.D.U. IS PRESENTLY SERVICING <br />