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5/26/1987
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5/26/1987
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Meetings
Meeting Type
Regular Meeting
Document Type
Minutes
Meeting Date
05/26/1987
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DATE: MAY 15, 1987 <br />TO: BOARD OF COUNTY COMMISSIONERS <br />THRU: TERRANCE G. PINTOD <br />DIRECTOR OF UTILITY SE - CES <br />FROM: LISA M. ABERNETHY�� <br />FRANCHISE MANAGER <br />SUBJECT: RURAL SANITATION RESIDENTIAL RATE INCREASE <br />BACKGROUND <br />On May 19, 1982, Indian River Board of County Commissioners updated <br />Rural Sanitation franchise of 1961 to bring the franchise up to <br />County standards. Since that time Rural Sanitation has not requested <br />a rate increase in either the residential or commercial areas. <br />Recently, Rural Sanitation requested in writing, as required by <br />Resolution 82-51, Section 14, of a requested increase in its <br />residential rates and submitted justification. Rural'' Sanitation - <br />requested that the residential rates be increased as follows: <br />$7.90 - Present Residential Rate - <br />3.04 - Break Even <br />1.09 - 10% Profit <br />$12.03 NEW RATE REQUESTED <br />After careful consideration and review, the Utility staff recommends <br />the Break Even factor to prevent Rural Sanitation from being in a <br />Loss position. The Utility Staff also recommends a 5% profit <br />increase. Staff has taken into consideration that Rural Sanitation <br />has been under new management for a 5.5 month period and feels that <br />the quality of service has improved. However, staff only recommends <br />a 5% profit increase, due to this short period of time under the new <br />management. Staff agrees, if Rural Sanitation continues to operate <br />in a prudent and efficient manner, they may return in one year and <br />request the additional 5% profit. Consideration has been given, that <br />the customer has the right to choose his or her franchise hauler. <br />Should the Board of County Commissioners approve Staff's <br />recommendation, Rural Sanitation's residential rates would increase <br />as follows: <br />$7.90 - Present Residential Rate <br />3.04 - Break Even <br />0.54 - 5% Profit <br />$11.48 NEW RATES AS RECOMMENDED BY STAFF <br />RECOMMENDATION <br />Utility Staff recommends that the Board of County Commissioners <br />authorize the residential rate increase of $3.58, as outlined above, <br />with the understanding that Rural Sanitation may return in one year <br />and request the additional 5% profit increase. <br />19 <br />BOOK <br />,r 9 <br />
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