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51 <br />OCT 201992' <br />ALTERNATIVES & ANALYSIS: <br />The alternatives to the county acquiring 117 units in Tropic Villas North <br />and 248 units in Customer Services, Inc., is to -allow the respective <br />franchises to continue their operation under the franchise resolution <br />agreement with Indian River County. Inasmuch as we are presently in a <br />revenue squeeze and are looking for improved customer base as discussed <br />and reviewed with Farmers Home Administration, there should -be -no consider- <br />ation of this alternative. <br />These two systems will be given to Indian River County at no charge under <br />terms of the -franchises. These are utility systems which have been maintained <br />and will be received in good condition. <br />RATE DISCUSSION: <br />Tropic Villas North: <br />Average consumption per month for each unit was 3,970 gallons for the <br />_last 12 months. <br />Comparing franchise rates with county rates gives the following average <br />bills <br />Franchise Water Bill County Water Bill <br />Base 2000 $10.00 $ 9.00 <br />Excess per 1000 gallons 3.94 4.43 <br />Total per unit $13.94 per month 13.43 per month <br />There will be a slight reduction in bills at the county rate if consumption <br />remains the same. <br />Customer Services, Inc.: <br />Averaqe consumption is assumed at 5,500 gallons per month, same as the <br />rest of county averaqe usage. <br />Base <br />Excess per 1,p00 gallons <br />Total <br />Franchise Water Bill <br />$5.00 $ 5.00 <br />3.50 .13 <br />8.50 11.13 <br />(Actual) (Approved ) <br />(Franchise) <br />County Water Bill <br />$ 9.00 <br />7.88 <br />16.88 <br />It should be noted that CSI charges less than their allowed franchise would <br />permit. Hence, the average bill is now $8.50, whereas county will charge <br />$16.88 for the same usage at the newly approved county.rates. It should <br />be noted that discussions for acquisition of this water system occurred <br />prior to knowing the rates to be adopted by Indian River County. <br />RECOMMENDATION AND FUNDING: <br />Staff recommends the commission terminate the respective ,rater sytsem <br />franchises and approve the acquisitions of both water systems: <br />1. Tropic Villas North on October 25, 1982. <br />2. Customer Services, Inc., on November.l, 1982. <br />Service to each of these subdivisions are to be charged at the standard <br />county rates. Such acquisitions are to comply with methods of acquiring, <br />placing under County Customer requlations, and public hearings to change <br />rates as established by precedence for earlier acquired franchises. <br />