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14 <br />0 <br />0 <br />MR. LOHMAN EXPLAINED THAT THEY ARE NEGOTIATING ON THE POSSIBILITY <br />OF FINDING A USED TREATMENT PLANT, WHICH WOULD SAVE SOME INVESTMENT AS THEY <br />MIGHT BE ABLE TO PUT IN A USED ONE FOR $50,000 OR $60,000. HOWEVER, IF ONE <br />CANNOT BE FOUND, THEY ARE FACED WITH PROVIDING A NEW ONE AT $70,000. <br />COMMISSIONER LOY REMARKED THAT MR. LOHMAN AS PRESIDENT OF INDIAN <br />RIVER UTILITIES SUBMITTED AN ESTIMATE ON ANEW 100,000 GALLON—A—DAY PLANT FOR <br />IXORA UTILITIES FOR APPROXIMATELY $60,000. <br />MR. LOHMAN STATED THAT THIS QUOTATION DID NOT INCLUDE ANY ELEC— <br />TRICAL WORK, ENGINEERING COSTS OR A POND, <br />COMMISSIONER SCHMUCKER ASKED MR. LOHMAN IF ANY EXPANSION OF THE <br />SYSTEM IS PLANNED. <br />MR. LOHMAN STATED THAT THERE ARE ONE OR TWO DEVELOPERS IN THE <br />AREA THAT THEY HOPE TO ADD ON AT SOME TIME, BUT NOTHING IS"DEFINITE SO FAR. <br />COMMISSIONER LOY ASKED IF THEY PLAN ANY UPGRADING OF THE WATER <br />SYSTEM, <br />MR. LOHMAN ANSWERED THAT THE.WATER SYSTEM IS PROBABLY THE BEST <br />PART OF THE ENTIRE SYSTEM. IT HAS A 150,000 GALLON STORAGE TANK, WHICH IS <br />ENOUGH CAPACITY TO HANDLE THE PRESENT CUSTOMERS AND ADD ON, THE D.E.R. MAY <br />REQUIRE DUAL CHLORINATING SYSTEMS, BUT THAT IS THE ONLY UPGRADING THAT MIGHT <br />BE REQUIRED, <br />CHAIRMAN SIEBERT ASKED GEORGE MCKENNA, ASSISTANT ADMINISTRATOR, <br />FOR HIS COMMENTS. <br />MR. MCKENNA STATED THAT IN REGARD TO THE TYPICAL METHOD OF DE— <br />d TERMINING RATES FOR UTILITIES, IT WAS HIS OPINION THAT ANY FIRM BUYING ANOTHER <br />I IS ENTITLED TO A RETURN ON THE AMOUNT THE BUSINESS MAY HAVE COST THEM. HE <br />CONTINUED THAT IT WAS HIS UNDERSTANDING THAT IT WILL COST TREASURE COAST <br />UTILITIES IN THE NEIGHBORHOOD OF $5,000.00 TO TAKE OVER SOUTHERN GULF UTILI— <br />TIES, WHICH, PLUS THE ESTIMATED $70,000 FOR A NEW SEWER PLANT, WOULD GIVE <br />THEM A TOTAL INVESTMENT OF APPROXIMATELY $75,000. HE STATED THAT SOME <br />LNCREASE IN RATES IS JUSTIFIED, BUT IT WOULD HAVE TO BE BASED ON AN ANALYSIS <br />j <br />OF THE WATER AND SEWER RATES, AND IT WOULD BE NECESSARY TO KNOW THE VOLUME <br />OF WATER USED IN BOTH CATEGORIES TO DETERMINE WHAT IS A REASONABLE FIGURE. <br />• C <br />HE NOTED THAT IN TRYING TO ANALYZE THE FIGURES SUPPLIED HIM, HE HAD DISCOVERED <br />t THE RATES CHARGED BY SOUTHERN GULF UTILITIES WERE ACTUALLY LESS THAN THOSE <br />APPROVED IN THE ORIGINAL FRANCHISE, WHICH HELPED CONTRIBUTE TO THEIR DEFICIT. <br />t. <br />} <br />ti <br />APR 2 017T... <br />E <br />