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DEC 111979 Bo 42 VALE 281 <br />SENSE THAT ANY COMPANY WOULD HAVE TO RECOVER THE COST. THE PRACTICE <br />AT THE TIME WAS FOR THE COMPANY TO INVEST THE MONEY AND INSTALL THE <br />LINES. <br />THE CHAIRMAN NOTED THAT THEY STILL HAVE THAT ORIGINAL MONEY <br />INVESTED. EVEN THOUGH THEY SOLD 200 TO 300 HOUSES WHEN THERE WERE NO <br />CONNECTION CHARGES, HE FELT WE CAN ASSUME THEY DID NOT GIVE THE WATER <br />AND SEWER AWAY, AND NOW THEY WANT A RETURN ON THAT MONEY WHEN ACTUALLY <br />THIS CORPORATION RECOUPED THE INVESTMENT. <br />MR. MOSIAN STATED THAT WAS A PERIOD WELL BEFORE HIS TIME <br />WITH THE COMPANY, AND HE IS NOT SURE THAT IS A FACT. <br />COMMISSIONER SIEBERT ASKED WHY THEY DID NOT COME IN FOR A <br />RATE INCREASE PRIOR TO GOING INTO PLANT EXPANSION. <br />MR. MOSIAN EXPLAINED THAT IN 1972 AND 1973 THE IMPACT OF <br />GROWTH AND INFLATION HIT THE COMPANY VERY BADLY, AND IT BEGAN FOR <br />THE FIRST TIME TO LOOK AT ITS RATES AND BEGAN FILING RATE CASES TO <br />RAISE THE RATES IN EVERY DIVISION THEY OPERATE. IT TAKES UPWARDS OF <br />TWO YEARS TO'PROSECUTE A CASE BEFORE THE STATE OF FLORIDA, AND THEY <br />USE THE SAME DOCUMENTATION THAT THEY HAVE HERE TODAY. BECAUSE OF <br />THE TIME AND THE MANPOWER IT TAKES, THEY DECIDED TO FILE THE CASES IN <br />ORDER OF MAGNITUDE, AND THEY ARE JUST NOW GETTING TO VERO. MR. MOSIAN <br />NOTED THAT WITH A SYSTEM THIS SMALL, IT IS VERY DIFFICULT TO MAINTAIN <br />A PROFIT, BUT THEY WERE ABLE TO ABSORB WHAT WERE SMALL LOSSES UNTIL <br />RECENT YEARS. <br />MR. MOSIAN THEN INFORMED THE BOARD THAT THE NUMBER OF <br />CUSTOMERS AS OF MARCH, 1979, WAS 338 FOR WATER AND 238 FOR SEWER. HE <br />EXPLAINED THAT THEY HAVE THREE PERMANENT EMPLOYEES, AND THE LABOR <br />CHARGES SHOWN ARE DIRECT LABOR PLUS A PORTION OF THE LABOR FROM PORT <br />ST. LUCIE FOR MR. VAUGHN AND THE BILLING OFFICE, WHICH CONSISTS OF <br />FOUR PEOPLE. A PORTION OF THEIR TIME IS ALLOCATED TO VERO BEACH ON <br />THE BASIS OF THE NUMBER OF CUSTOMERS. HE NOTED THAT PORT ST, LUCIE <br />HAS APPROXIMATELY 6,000 WATER CUSTOMERS AND 3:500 FOR SEWER. THAT <br />IS WHY THE ALLOCATIONS TO VERO BEACH ARE (QUITE MINIMAL. <br />36 <br />