11/2/1983 - Laserfiche WebLink

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NOV 21983 Aga 5 Director Pinto explained that when they reviewed the rate structure, they tried to carry it out to completion of construction. There is no question that in the early years it has to be subsidized by the developer only because there are unoccupied units. Another consideration is that all operating costs are projected costs; in this case, it is a little better because we know exactly what the water is going to cost them because they are contracting with an operating utility. There will be situations where after several years or even a year in service, we will have to go back and look at operating costs to see if they are as projected, and then possibly ask for an adjustment. Director Pinto confirmed that there is a direct flow through provision in the utility resolution that when a rate increase is addressed by the City of Sebastian, it does not have to come before this Board. Commissioner Lyons asked if they have any rate hearings scheduled now with the City of Sebastian that would affect this, and Director Pinto answered that they just went through_a rate hearing and were instrumental in setting the rates that are going to be charged to Reflections. The legal situation involved with the City of Sebastian is that of selling water outside the city. The County can regulate Citrus Utilities itself, but the City of Sebastian has to regulate the production and sale of water within Sebastian. Commissioner Scurlock asked if depreciation stops at the 7th year, and Director Pinto stated that depreciation does not stop, it just goes on -until it is depreciated out. Commissioner Scurlock asked Attorney Brandenburg about the distribution system and Attorney Brandenburg explained that apparently this line is being considered as an off- site line and has been tossed in as part of the buy-out provision should the County desire it. The Attorney stated that the County usually requires the developers to give all M