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the gallonage usage, but now people will be paying for exactly the amount of water they use. Mr. Pinto concurred and further noted that GDU has initiated a water conservation program and has sent informa- tion to their customers suggesting ways of conserving water. The Chairman asked for discussion from the Board members. Commissioner Scurlock believed there are several items which need to be addressed, first and foremost, the water quality problem. He felt strongly that the GDU formula needs to be changed to reflect a heavier impact on the new customers. As to the question of water conservation, he believed a basic lifeline rate structure type of situation may be appropriate in this case and then an inverted type of rate structure, which has a penalty for high usage. Commis- sioner Scurlock noted that as a general practice General Development companies encourage development and subsidize systems and then later come in with large increases because they never adopted an appropriate structure in the first place, and he believed this is exactly the case here. There is no question that a rate increase is necessary, and Com- missioner Scurlock felt it would be appropriate to approve an interim rate hike and then have GDU come back after improvement of quality takes place and we then can address phasing in an increase. In regard to the suggestion by the Vero Shores resident that the system be divided up if, in fact, the county does sell water to GDU, he pointed out that this is all one distribution system and it is not possible to split it up. Commissioner Scurlock continued that there is no question in his mind that an industrial revenue bond issue is appropriate because there will be some necessary improvements no matter what, and they can be done at less cost this way. In regard to the county supplying wholesale 33 2 rz y NOV q 1983