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been defined, rather than projecting the costs. The site <br />pian meets all requirements and they can proceed with <br />construction; they cannot, however, charge anyone anything <br />until.they come back to the Board in a public hearing to <br />establish the rate structure. <br />Chairman Scurlock asked how they are going to market <br />their product if they don't know the cost of the water, as <br />people generally want to know all of the costs involved <br />before purchasing a condominium unit. <br />Henry Muller, developer of River Run, spoke from the <br />audience and explained that their system is being set up <br />entirely for'the 136 -unit condominium development, and they <br />are taking the risk that the people will approve a proper <br />rate. In the meantime, however, they will project a rate <br />based on an approximate monthly operation cost for all the <br />people who have purchased units. <br />Chairman Scurlock expressed concern about rates being <br />set too low, which generally results in residents later <br />coming in and objecting to any increases. He, personally, <br />would prefer that an adequate cost be established up front. <br />Commissioner Wodtke asked why GDU just didn't increase <br />the size of their franchise in that area to include River <br />Run, and Director Pinto explained that the water is being <br />purchased from the franchise area of the City of Sebastian. <br />In order to expand, they would have to establish a new <br />franchise in Indian River County, and he assumed GDU did not <br />wish to do that. <br />Mr. Muller explained that GDU does not have the <br />capability to supply both water and sewer. GDU can supply <br />only the water, and they cannot do that without the approval <br />of the City of Sebastian. River Run will have its own <br />wastewater treatment facility. He noted that this franchise <br />is very similar to the franchise granted for Reflections on <br />the River, except that Purolater will not get sewer. <br />16 <br />JAN. 25 1984 WA 55 en'T.-9106 <br />