9/18/1986 - Laserfiche WebLink

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r r � Mr. Wheeling reviewed the above charts and pointed out the differences between the present and proposed rates. He noted that the rates for the average user of 5,000 gallons of water would.increase from $9.19 to $20.48 a month without franchise taxes. He stated that the rates would be higher if GDU based the rate increases on the current facilities with a provision for a fair rate of return. This proposal does not include the $1.2 million of line costs associated with the inter -connect pipe line or a provision for a fair rate of return. He stated that the numbers.they are using tonight are true and accurate to the best of their knowledge and belief. Commissioner Bird asked if there was anything in writing about the County's agreement to sell GDU water at $1.72 for 1000 gallons, and Attorney Shandloff explained that Resolution 83-109 addresses the pass through charges, but does not actually specify the rate charged by the County, since those rates are subject to change. Utilities Director Terry Pinto explained that the specific rate is not spelled out in the water purchase agreement entered into on December 7, 1983, because the County, through a normal rate procedure, can increase that rate at anytime. The agreement is to sell water to GDU at the regular production rate set by the County, and when the time comes for an increase, the County will go through a normal rate increase process. What the agreement provides is the particular steps that must be followed by GDU in order for them to pass through whatever increases the County makes. The governing factor of that rate is the County's rate ordinance, and in that respect, GDU is the same as any other customer on our system. Chairman Scurlock noted that the County Utilities Dept. has not increased its rates since we entered into this agreement. Commissioner Bird asked if the $1.72 is the same rate we sold to other customers, and Director Pinto explained that we 7 BOOK 65' Fr1Gc 786 0