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S E P 7 1983 <br />value worth is when you are talking about revenues being <br />recovered. The line would have to more than pay for itself <br />or staff would not recommend the purchase. <br />Chairman Bird asked Director Pinto if the proposed <br />study by Greeley & Hasen would establish the proper value of <br />the line and come up with a formula to show where the money <br />would be generated to pay for that acquisition. <br />Director Pinto assured Chairman Bird that the system <br />would be set up on a pay as you go basis right from the` <br />beginning, and that we were not looking at breaking even <br />somewhere down the road. He explained that in determining <br />the value of the line, the amount of revenue the line can <br />return is much more important than the actual construction <br />value of the line. However, the starting point for the <br />people who are going to sell is the replacement value. <br />Chairman Bird asked what effect Sawmill Ridge's lease <br />will have on the line, and Commissioner Scurlock explained <br />that Sawmill Ridge has indicated that they are willing to <br />terminate the lease agreement. The Town of Indian River <br />Shores supports the program and are basically looking for <br />wholesale water and will handle their internal distribution. <br />Also, the North Beach Water Company has an interest in it as <br />an alternate source of high quality water in case of an <br />emergency. <br />Commissioner Scurlock advised that St. Johns Water <br />Management District wants very much to phase out the shallow <br />wells in the Wabasso area. <br />MOTION WAS MADE by Commissioner Lyons, <br />SECONDED by Commissioner Scurlock, that <br />the Board authorize the Utilities Dept. to <br />enter into a contract with Greeley & Hansen <br />for their evaluation of acquiring the water <br />line in the amount of $3,800. <br />30 - <br />