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s <br />v <br />Director Pinto asked if it would be the DER's attitude <br />to allow use of the well to continue, and Mr. Bostwick <br />stated that it would, with close monitoring, if there is no <br />other problem. <br />Chairman Bird asked Director Pinto to give the staff <br />analysis of the proposed rate increase. <br />Mr. Zambataro swore in Utilities Director Pinto. <br />Mr. Pinto reviewed the following staff memo: <br />TO: Honorable Members of the DATE: November 8, 1983 FILE: <br />Board of County Commissioners <br />THRU: Terrance G. Pinto � <br />Utilities Director�r'SUBJECT: General Development Utilities <br />Rate Increase <br />Michael Wright <br />County AdministA� <br />FROM: Jose -A. Baird REFERENCES: <br />Administrative Manager <br />General Development Utilities has filed application to request a rate increase of <br />approximately 170%. This will change there present revenues from $136,420.00 <br />to $370,249.00 and increase of about $233,830.00 in over all revenues. Even <br />though they are asking for a substantial rate increase, the rate of return <br />they are requesting is only 1 1/2% for water and zero for sewer. Both these rate <br />of returns are far below industry standards which are between 12 1/2 and 14 1/20 <br />at the present time. In evaluating the request, we researched other aspects that <br />would inflate their revenue unjustly. One aspect we evaluated was the 1982 <br />test year and found it to be satisfactory since there were no drought conditions <br />that existed or any other tmusual circumstances that would increase water consump- <br />tion to inflate revenue. In using the 1982 test year, they have also eliminated <br />any costs affiliated with the planned construction of 3.2 million dollar plant <br />or the proposed cost of tying into the County's water system. Both these capital <br />expenses should be excluded, however, not forgotten since they have a large <br />impact on future rates. They are causes for increased rates in the near future. <br />After an indepth review of General. Development rate request, our staff has found <br />the rate request to be financially justified, however, we would like the opportunity <br />to analyze all testimony which will be given at the public hearing prior to makinal <br />final recommendation on the rate increase request. <br />NOV 9 1983 <br />L_ <br />21 <br />�a 5 ray 2' s <br />