2/2/1988 - Laserfiche WebLink

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the system is being subsidized, and they are supposed to show their true rate on the utility bills. Chairman Scurlock agreed that we really took the gaff in Vero Highlands when we took over and had to have some dramatic increases. We now are requiring these various utilities to have a proper rate structure from the beginning, and, as an example, North Beach Water Company has a base facility charge three times as high as the the county's because we have required them to make the system carry itself. Commissioner Bird expressed concern about the possibility of our taking over a small system that is being operated well and providing service cheaply and efficiently. Director Pinto explained that a developer builds his plant and pays for it as part of the development cost, but then when he comes in for his rates, he doesn't have a rate base; so, he has a real true low rate. What the people don't understand, however, is that plant is a short term plant, with probably a ten year life, and when the time comes for replacement of the plant, the total cost becomes their cost. They then have to face the choice of abandoning the plant or spending all the money; they don't want to spend the money; and then the county has to come in and spend a lot of money. The developers creates the problem - they don't want to be in the utility business; so, they pull out, and we are left with the problem. Chairman Scurlock believed one of the major impacts we are going to see is the new Safe Water Drinking Act. That will bring about a demand for many existing systems to be retro -fitted, and he felt we accordingly will see a dramatic increase of approaches made to the county by various little companies. Utilities Director Pinto agreed they will bail out and just leave, and River's Edge is an example. The Chairman asked if anyone wished to be heard. There were none, and he thereupon declared the public hearing closed. 31 FEB 21988 LIN7® FADE 76O