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n COMMISSIONER LOY NOTED THAT EXPANSION OF THE SYSTEM HAD BEEN DISCUSSED, BUT THERE WAS NOTHING IN THE EXPENSE STATEMENT TO ALLOW FOR HANDLING ANYTHING ADDITIONAL, MR, LOHMAN STATED THAT WHEN YOU TAKE ON A NEW DEVELOPMENT, THE DEVELOPER USUALLY ABSORBS THE COST, HE CONTINUED THAT IF THEY GET THE RATES HE JUST SUGGESTED, THEY COULD OPERATE WITHOUT A LOSS AND THEN WILL BE ABLE TO NEGOTIATE WITH VISTA ROYALE, BUT IF THEY CANT MEET EXPENSES, THEY CANNOT ADD A NEW SYSTEM, COMMISSIONER VIODTKE SAID, IN OTHER WORDS, YOU ARE SAYING THAT WITH THE RATE INCREASE THE BOARD HAS SUGGESTED, YOU CANNOT GUARANTEE YOU WILL PUT IN THE NEW SYSTEM, COMMISSIONER MASSEY STATED THAT HE DID NOT SEE HOW THE BOARD CAN GRANT A RATE INCREASE TO A SYSTEM THAT IS IN VIOLATION, AND THERE IS NO GUARANTEE THAT IT WILL BE CORRECTED, MR. LOHMAN NOTED THAT THE D.E.R. IS AWARE OF THE ENTIRE SITUATION AND KNOWS WE ARE DEALING WITH VISTA ROYALE, HE CONTINUED THAT WITH THE RATES ORIGINALLY REQUESTED, THEY COULD GENERATE AN INCOME OF $7,000 TO $8,000 A YEAR AND WOULD BE ABLE TO BORROW MONEY AND INSTALL A NEW SYSTEM WITHIN A SHORT PERIOD OF TIME, BUT THE RATES THE BOARD IS SUGGESTING ARE WAY BELOW WHAT IS NEEDED TO REMEDY THE SITUATION, DISCUSSION FOLLOWED ON THE VARIOUS FIGURES PRESENTED AND CAL— CULATED INCOME THAT WOULD BE GENERATED, r; COMMISSIONER WODTKE STATED THAT SINCE IT HAS BEEN INDICATED THERE IS AN OBLIGATION ON THE PART OF TREASURE COAST UTILITIES TO PURCHASE j THE FRANCHISE FROM SOUTHERN GULF UTILITIES, HE WOULD MAKE A MOTION THAT THE BOARD ADOPT RESOLUTION N0. 76-32 GRANTING THE TRANSFER OF ASSIGNMENT OF FRANCHISE FROM SOUTHERN GULF UTILITIES, INC., TO TREASURE COAST UTILITIES INC, WITH THE STIPULATION THAT THE STANDARD AMENDMENT TO THE FRANCHISE AGREEMENT, GIVING THE COUNTY THE DISTRIBUTION LINES AT NO COST AT SUCH TIME AS PUBLIC UTILITIES ARE PROVIDED, BE INCLUDED IN THE NEW FRANCHISE, MOTION WAS SECONDED BY COMMISSIONER SCHMUCKER, 32 Y 197 ao 2 5. ,3 z: