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SEP 11 <br />1985 <br />BOOK <br />�'� F��UL 1-1 d ru <br />tions <br />for utility taps; Commissioner Scurlock, however, <br />still had <br />some concern about the actual reservation of water and wastewater <br />for the project, which comes through execution of an option. <br />Commissioner Scurlock explained in detail how Sea Oaks <br />purchased part of Mr. Nutt's hotel property, and as a part of the <br />purchase agreement guaranteed Mr. Nutt a total of 710 ERCs, which <br />was broken out into some specifics re the number of hotel rooms, <br />etc., but there was some flexibility as to the changes that could <br />take place on that. Then Sea Oaks entered into a developer's <br />agreement with North Beach Water Company and reserved 897 taps, <br />which means that Sea Oaks presently has only 187 ERCs for its <br />total project as 710 are for Mr. Nutt's property. He noted that <br />to complicate this even further, it seems they are equating an <br />ERC to a 5/8' meter as opposed to a gallonage - they are saying <br />500 gpd per ERC, and under our county ordinance a hotel isn't 1 <br />ERC, it is .20; so, you have to have five hotel rooms to reach 1 <br />ERC. When you start trying to track this and see who has what <br />reserved, it becomes a very difficult task. Also, when you look <br />at their tariff for North Beach Water, it doesn't make much <br />sense. Commissioner Scurlock noted that this, however, is not <br />related to the good faith effort; it just causes him concern as <br />to whether Sea Oaks has reserved enough capacity to do its own <br />project. He continued that he has been working with Utilities <br />Director Pinto and wants to meet with North Beach Water Company <br />as he is not sure they know what they are doing. <br />Utilities Director Pinto stated his only comment is that the <br />tariff we are looking at has not been approved by the Commission <br />yet; so, we have the ability to get into this. <br />Chairman Lyons asked if Commissioner Scurlock is saying that <br />the developer could come back in a few years and say he can't <br />meet his development commitment because he doesn't have water. <br />Commissioner Scurlock clarified that what he is saying is <br />that legally Mr. Nutt has reserved sufficient taps to build his <br />project, but since there is no formal relationship between Sea <br />36 <br />