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M The County needs assurances that the utilities will be professionally run under a specific franchise. Equitable arrangements for all the cooperative developers are needed which takes into account only two will be responsible for providing land for wells, plant and certain distribution mains. This involves consistant conservation requirements and fair rate schedule. Discussion of any changes requires County concurrance as well as concurrance of the parties involved in the cooperative venture. t A public hearing meeting was held June 2, 1982 to review the requirements of Florida Land Company and their need to get their project moving ahead. At that time, the Board of Commissioners postponed action until the scheduled meeting of July 7, 1982. An ad was published in the Press - Journal in the issue of June 15, 1982. In addition, the tax rolls were researched to obtain a list of 256 property owners within 300 feet of the service area. All property owners of this list were notified by mail on 6/25/82 of the public hearing for the North Beach Water Company. The application and prepared package of background material is attached to this memo. ALTERNATIVES AND ANALYSIS ` Although the developers subdivision can benefit by the unified water system, the obstacles and interests prevented the arrangement of a unified sewage system. This is in a large part brought on by the need for conserva- tion of potable water which virtually dictates that each subdivision retains its own sewage effluent for irrigation and possibly fire protection. The unusual nature of the cooperative water system results in the stated desire of the franchise to be acquired by the County after the franchise is able to recover most of its development costs. This desire is manifest in the franchise resolution defining the contracted cost of the system less computed impact fees and less calculated depreciation. This method of determining cost to the County is believed by staff to offset a need to accrue impact escrow fees for this franchise. Although it is difficult at this time to predict the development rate because of the economy situation, there is a provision for the County to purchase the franchise at 7 years and 10 years - times at which the franchise is expected to be in a position of earning its own way. The County is protected with a provision for an escrow fund established for a maintenance (Renewal and Replacement) account. In addition, the County will obtain a tax of 3% of the gross revenue, along with fiscal records and certification of proper payment. The proposed rate schedule for impact fees and service fees are of a scale to promote conservation of water and the use of the smallest practicable meter. The rates are seen to be at a higher level than those proposed by River Bend Utility Company. However, this is explained by the uncertain economy picture as it affectsdevelopment and the desire of the franchise to recover its costs to ease the sale to the County. , The nature of the cooperative venture is such that certain organizing aqreements are not legally feasible until the franchise can be established by approval of the Board of Commissioners. Where this occurs, the completed documents will be made a part of franchise resolution. An example bf this is an agreement for equitable sharing of the lease and or purchase costs for land required for location of the wells, plant and major distri- bution main. RECOMMENDATION AND FUNDING It is recommended that the Board of County Commissioners approve the application for the North Beach Water Company as proposed. JUL 7 1982 ou � 25 .wJ -