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r NOV 12 1986 <br />BOOK 66 F,{,-346 <br />TO: BOARD OF COUNTY COMIVSSIONERS DATE: November 4, 1986 <br />THRU: TERRANCE G. PINT-6j1,0qtL_,IRECTOR OF UTILITY SERVICES <br />FROM: JEFFREY K. BARTO1`Ni'ASSISTANT DIRECTOR OF UTILITY SERVICES <br />LISA M. ABERNETHY, FRANCHISE MANAGER <br />SUBJECT: BREEZY VILLAGE SEWER & WATER CO., INC. <br />BACKGROUND <br />On January 9., 1985, the Board of County Commissioners adopted <br />Resolution 85-5, attached hereto, for Breezy Village Sewer and Water <br />Company, Incorporated. Item number 4 states, "Provided it is <br />determined by the Board of County Commissioners that the Utility is <br />operating under efficient and economical management, the Utility will <br />be authorized to generate $37,094 in gross water and wastewater <br />revenues thereafter." Further, "The gross revenue test will be based <br />on customers enrolled." At that time, Mr. Pinto suggested to the Board <br />of County Commissioners that the Utility's operations be reviewed and, <br />if determined satisfactory, then allow them a rate which would provide <br />a 12% return. <br />RECOMMENDATION <br />Utility staff has reviewed the Utility's accounting records and plant <br />improvements (water and wastewater) and deem satisfactory operation of <br />the facility at this time. Further, staff has noted a tremendous <br />improvement in the Utility's accounting practices. <br />Staff asks that Breezy Village Sewer & Water Company, Inc., develop a <br />tariff to generate the $37,094.00, for a twelve-month period, detailing <br />the 12% rate base and operating costs, providing Breezy Village Water & <br />Sewer Co., Inc. shall continue to operate in an efficient and <br />economical manner. <br />Director Pinto noted that in 1985, based on a $66,302 rate <br />base, the Commission issued an Order which allowed the utility to <br />recover $27,504 in revenue, but penalized the company the 12% <br />orate of return on their investment until they could show they <br />could operate the utility in an economical and efficient manner.. <br />The company now has petitioned for that increase to be granted, <br />and staff after reviewing their operation, feels this is in <br />order. <br />Chairman Scurlock had a question about the cost of the <br />operation being allocated equally between water and wastewater as <br />he felt it is difficult at best to have that actually come out <br />the same. He was not sure what analysis was done on the tariff <br />that was first approved which exactly parallels water and <br />8 <br />