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