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MpY 2 1984 BOOK <br />3. Net Operating Income: <br />56 ` PA' GE 892 <br />The staff concurred with everything with the <br />following exceptions: <br />1. Dr. Wilson is requesting a fee of $2,600.00 <br />yearly for performing daily management. It is <br />believed that this should be denied since.he is <br />already requesting $200.00 per month,.$2,400.00 <br />yearly for checking mechanical equipment daily. <br />2. Dr. Wilson has requested $2,400.00 yearly for <br />daily checking and maintaining mechanical equipment <br />daily. However, there are complaints by residents <br />that the equipment is not checked daily. If the <br />Board of County Commission, after the public input, <br />feels this is true, this $2,400.00 figure could be <br />reduced to a justifiable amount. <br />RATE OF RETURN: <br />The staff feels a justifiable rate of return for a utility <br />under prudent and economical management is 10%, not 13.70 <br />as requested. If after public input the Board of County <br />Commissioners feels that Breezy Village is not being run with <br />prudent and economicdl management, then the rate of return can <br />be reduced accordingly. <br />Attorney Henderson noted that Mr. Baird raises three <br />areas of concern. He stated that they are in agreement with <br />his recommendation for treatment of connection fees and as <br />to what the rate of return should be. As to the question of <br />the used and useful adjustment to the rate base, they are <br />agreeable in theory. There are a few other items related to <br />expenses, etc., they will need to discuss, and some other <br />things Mr. Baird has mentioned that are not contained in his <br />report, but Attorney Henderson did not believe they will <br />have much problem coming to agreement on these. He <br />emphasized, however, they are not prepared to submit <br />evidence at the rate schedule hearing. He, therefore, <br />suggested that the Board go ahead and deny the rate schedule <br />requested, subject to a review being requested and a second <br />hearing within 30 days. Attorney.Henderson pointed out that <br />they are losing money on this utility and cannot afford to <br />wait too long. <br />Considerable discussion ensued wherein the Chairman and <br />Board members stressed that the Commission has purposely <br />93 <br />