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ALTERNATIVES AND ANALYSES: <br />The Rate Review Committee report is attached as Exhibit "D". The <br />Committee found all expenses to be justified and has no problems <br />with the rate schedule requested. <br />A physical inspection of the facility was made on December 7, 1984, <br />,(Exhibit "E"). This inspection disclosed several deficiencies <br />which franchisee is making an attempt to correct. <br />(EXHIBITS "A" - "E" listed above are on file in Clerk's. Office) <br />RECOMMENDATION: <br />Staff recommends the Board authorize its Chairman to execute <br />the revised resolution and approve the rate schedule as requested <br />provided improvements are made as noted by the physical inspection. <br />Utility Services Director Terry Pinto explained that the <br />rate requested is taken from the exact dollars spent to operate <br />the system, plus the depreciated value of the treatment plant, <br />which staff has depreciated out for 25 years; this is somewhat <br />longer than most treatment plants of that type, but they felt <br />that with only 12 customers, depreciation should be allowed in <br />order to benefit the customers. If the County requests major <br />improvements to be made, the cost would be split amongst only 12 <br />customers. Director Pinto felt, frankly, that the County has <br />let the plant limp along, as long as there wasn't any real <br />health problem, until such time that the subdivision could be <br />incorporated into the City sewer system. If this cannot be <br />accomplished, then staff's recommendation is that the area go to <br />septic tanks, at which time the franchise would be dissolved. <br />Director Pinto understood, however, that there are two <br />homeowners who do not want septic tanks, and that the plant must <br />be kept in operation as long as even one resident wants service. <br />He felt it is most important that we address the system as a <br />temporary system, and as soon as other facilities are available, <br />to require that the franchise be dissolved. <br />Director Pinto explained that there would be a flat rate of <br />$48.65 per unit, and the only dollars that will be going <br />directly to the owners of the system are the dollars for <br />depreciation. <br />30 <br />DEC 1 � 1984 <br />BOOK F9rF 250 <br />