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FEB15 1984r-5BOOK FaUt1 RECOMMENDATION FOR TRANSFER OF SOUTH BEACH WATER TO CITY OF VERO BEACH The Board reviewed the following memo dated 2/8/84: TO: The Honorable Members of the DATE: February 8, 1984 FILE: Board of County Commissioners t THRU: Terrance G. Pinto. � SUBJECT: RECO�'ll�'IENDATION TO TRANSFER SOUTH Utility Director �� BEACH WATER PROJECT TO CITY OF VERO BEACH FROM: Jose, A. Baird REFERENCES: Ass stant Utility Director DESCRIPTION AND CONDITIONS: A recommendation must be made as to whether Indian River County Utilities should furnish South Beach with water and if so, which method would be in the best interest to the public. Alternative 1: The main alternative that has been cultivated per Sverdrup and Parcel recommendation is a subaqueous crossing costing a total of $7,200,000. Improvement 6,030,000 Engineering 300,000 Financing Cost 870,000 TOTAL 7.9200,000- After ,200,000After a close review of this alternative, we have found several short -falls. 1. The project costs stated above includes only the water line going under the river and completing the main artery running down A -1-A. The costs of this project excludes laterals and other water mains that will be necessary to serve customers that do not abut existing water lines or border A -1-A. We estimate it could easily exceed 1 million dollars in additional line costs to serve all the customers in the South Beach Area. 2. Sverdrup and Parcel has estimated several of our projects and none have been within the budgeted construction and engineer cost. They usually exceed projected costs by 150 or more. From the time the project was originally proposed to the latest estimate, construction figures have grown from 4,677,000 to 6,030,000 and financing costs from 792,978 to 870,000. One has to begin to wonder what the real cost of the project will be. 3. The potential number of customer was estimated by John Robbins in his renort of April 7, 1981, to be as follows: ` 28 so