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SEP 2 6 1954 BOOK 58 Pg -472. TO: The Honorable Members of the DATE: September 17, 1984 FILE: Board of County Commissioners THROUGH: Terrance G. Pinto, i ector Utility Services < REQUEST FOR AN AMENDMENT OF SUBJECT: MAIN EXTENSION & SERVICE AVAILABILITY POLICY O FRetor M.Joyce S. Hamilton .) GDU's Request Franchise AdministREFERENCES.B) Rate Review Comm. Report Utility Services C) Staff Resolution/Fr. Fee D) GDU Resolution/Amendment bESCRIPTION AND CONDITIONS: General Development Utilities, Inc., has requested (Exhibit "A") an amendment to their main extension and service availability policy as granted in Resolution No. 83-122. Staff is requesting the Commission to also consider a resolution (Exhibit "C") which will amend Resolution No. 83-109 to provide for a franchise fee of six percent (6%) to be paid to the County quarterly. ALTERNATIVES AND ANALYSES: The Rate Review Committee's evaluation is attached as Exhibit "B". The Committee found the charges were calculated in a reasonable manner and are fairly stated. However, as noted in Exhibit "B", there are serious concerns particularly item number four with the language and content in the policy. In reviewing the resolution submitted by GDU, staff has recognized the need to rephrase the opening sentence of Section 14 to read: The rates charged by the Company for its service hereunder shall be fair and reasonable and designed to meet all necessary costs of the service, including a fair rate of return on an approved rate base under efficient and economical management. Staff has not received any complaints regarding the water and/or wastewater quality since GDU's last public hearing held in Nov- ember, 1983. In staff's resolution to amend Resolution No. 83-109, we are requesting that the language in 83-109 which provided for an amount to be paid to the County when added to the amount of all county taxes, licenses, and other provisions levied or imposed upon the utility's property, business or operations for the pre- ceding tax year, would equal six percent (6%) of company's gross revenues excluding contributions in aid of construction and connection charges from the sales of water and sewer service to residential and commercial customers served by the utility's systems in Vero Shores and Vero Beach Highlands within the unincorporated area of the County for the twelve fiscal months preceding the applicable anniversary date, be changed to read as follows: The Utility hereby agrees to pay to the County a franchise fee in the amount of six percent (6%) of the Utility's annual gross receipts derived from monthly service charges to defray the cost of regulation and for use of County rights-of-way and public places. The Utility shall pay the six percent (6%) frara'chise fee quarterly. Said fee shall be shown as a separate additional charge on utility bills. RE