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explained that.they are not talking about the treatment <br />plant, they are talking about the ground storage tank. <br />There is no reason to retain the ion exchange units. <br />Rates were discussed, and Mr. Fancher stated the price <br />quoted to them was $1.64 per thousand gallons and a base <br />facility charge for a single unit, and he was not sure what <br />that amount was. <br />Administrator Wright believed it was about $5.50 and <br />there wouldn't be a meter charge. <br />Commissioner Wodtke asked, in essence, what effect this <br />would have on the customer in Vero Shores. <br />Mr. Fancher answered that right now it doesn't have any <br />effect. He pointed out that any change in the rates they <br />are charging the customers will have to come through the <br />regulatory process of this Commission. <br />Commissioner Scurlock noted the net effect is that the <br />only alternative was for GDU to develop their own capital <br />expansion program, and comparing that capital expansion to <br />the purchase of wholesale water showed that entering into <br />the agreement to purchase the wholesale water would result <br />in a net benefit to the customer if everything were allowed <br />to be passed through. <br />In further discussion, it,was noted that this will <br />result in an even greater benefit later on when the utility <br />would have had to go to an additional plant expansion. <br />Administrator Wright noted that the franchise has <br />nothing to do with this. The franchise fee, which is based <br />on gross revenues, will be paid whether GDU produces the <br />water or buys it from us. Their rates are based on <br />production of water no matter how it is produced, and the <br />price of water will go up in the Highlands either way. <br />THE CHAIRMAN CALLED FOR THE QUESTION. <br />It was voted on and carried unanimously. <br />DEC 71993 103 ; <br />Btilf FACE F$ <br />