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pr - <br />DEC 111979 boos 42 PA,f287 <br />ATTORNEY COLLINS REQUESTED THAT THE FRANCHISE UNDER WHICH <br />GENERAL DEVELOPMENT UTILITIES IS OPERATING AND THE AMENDED RESOLUTION <br />N0, 77-95 BE MADE A PART OF THE RECORD AND MARKED EXHIBIT 10 AND <br />EXHIBIT 11. ALL EXHIBITS ARE ON FILE IN THE OFFICE OF THE CLERK. <br />CHAIRMAN WODTKE ASKED THAT THE APPLICANT RESPOND TO THE <br />QUESTIONS BROUGHT UP BY THOSE OPPOSING THE RATE INCREASE. <br />MR. MOSIAN ADDRESSED THE QUERY AS TO WHAT WOULD HAPPEN IF, <br />IN FACT, THE AVERAGE USAGE WAS LARGER THAN 5;000 GALLONS PER MONTH. <br />HE NOTED THAT THE IMPLICATION WAS THAT THEY COMPUTED THE REVENUE AND <br />MULTIPLIED BY THE NUMBER OF CUSTOMERS; WHILE ACTUALLY THEY DID WHAT <br />IS COMMONLY KNOWN AS A BILL ANALYSIS, WHICH IS COMPUTED ON EVERY BILL, <br />AND THE BULK OF THE BILLS ON 3/4" METERS WAS 5,000 GALLONS PER MONTH <br />OR LESS. MR. MOSIAN NOTED THAT PRIMARILY THOSE IN VERO SHORES ARE ON <br />LARGER METERS, AND THEIR AVERAGE TURNED OUT TO BE ABOUT 14,000 GALLONS <br />PER MONTH. HE EXPLAINED THAT THE NUMBERS USED IN THE RATE CASE ARE <br />BASED ON ACTUAL USE, NOT AVERAGE. <br />AS TO THE COST OF DEVELOPMENT, MR. MOSIAN EXPLAINED THAT <br />ALL COSTS HAVING TO DO WITH THE UTILITY PLANT ARE CAPITALIZED AND DO <br />NOT SHOW AS AN OPERATING EXPENSE. HE EMPHASIZED THAT EVEN WITH THE <br />RATE INCREASE, THEY ARE NOT ASKING FOR A RETURN, BUT MERELY TO RECOVER <br />OPERATING EXPENSES. MR. MOSIAN AGREED THAT THE SIZE OF THE INCREASE <br />IS SUBSTANTIAL BUT THE RATES THEY ARE REQUESTING ARE VERY COMPARABLE <br />TO THE COUNTY'S RATES, AND SEVERAL MUNICIPAL ENTITIES HAVE HIGHER RATES. <br />IN REGARD TO GENERAL DEVELOPMENT'S PROPOSED FUTURE DEVELOPMENT IN THE <br />HIGHLANDS' AREA, MR. MOSIAN NOTED THAT THE PRESS RELEASE INDICATED <br />THAT THEY ARE PLANNING TO BUILD 1,150 SINGLE FAMILY RESIDENCES AND <br />725 DUPLEX. HE POINTED OUT THAT THESE WILL NOT BE BUILT OVER NIGHT; <br />THE GROWTH WILL BE OVER A LONG PERIOD OF TIME, AND PROBABLY GENERAL <br />DEVELOPMENT WILL ONLY BUILD 2,000 RESIDENCES THIS YEAR IN ALL OF ITS <br />DIVISIONS. HE DID NOT KNOW THE ACTUAL NUMBER, BUT SPECULATED THEY ARE <br />GEARING UP TO BUILD ABOUT 50 HOMES IN THIS AREA IN THE NEAR FUTURE. <br />MR. MOSIAN FURTHER NOTED THAT THE CURRENT TREATMENT PLANTS WILL NOT <br />SUPPORT 2,000 HOUSES, AND THEY WILL BE EXPANDED AS NEED BE. IN REGARD <br />