Laserfiche WebLink
Utilities Director Pinto assured the Board that staff <br />project engineer William McCain has followed to the letter the <br />requirements we have to look at under Statute 125.3401, and for <br />the record, these requirements are as follows: <br />1) The most recent available income and expense statements from <br />the utility under consideration. These have been supplied to OMB <br />Director Baird for review. <br />2) The most recent available balance sheet for the utility <br />clearly showing contributions -in -aid -of -constructions and <br />accumulated depreciation. <br />3) A statement of the existing rate base of the utility. <br />4) The physical condition of the utility facilities being <br />purchased. Staff has inspected the facility themselves and our <br />consultants, DSS Engineering, have done an evaluation. <br />5) The reasonableness of the purchase price and the terms. <br />6) Any additional investment required and the ability and <br />willingness of the purchaser to make that investment. <br />7) The alternatives to the purchase or sale and potential impact <br />to customers if the sale is not made. This is shown in staff's <br />evaluation. <br />8) The ability of the purchaser to provide and maintain a high <br />quality and cost effective service. <br />Director Pinto reported that staff has found all of these <br />things to be positive. As expressed to the Board previously, the <br />existing rate of North Beach Water for 10,000 gallons water <br />consumption per month would be $36.95. In the county existing <br />rate structure, it would be $40.06, which is a $3.11 change in <br />the rates. However, when you look at the balance sheets of the <br />water company, you will see they are running at a substantial <br />annual loss, and the only way they could continue to exist would <br />be to raise their rates considerably, to a point where they would <br />be higher than our present rates. Director Pinto further <br />explained that, because our cost per thousand gallons is less <br />than theirs, as consumption increases our rates would decrease <br />in comparison. <br />Chairman Scurlock advised that when he, Director Pinto, and <br />Attorney Vitunac structured this deal, they were looking at no <br />impact to existing customers and the ability to bring new ones on <br />as close as possible to the existing rate structure. He believed <br />APR 12 1988 <br />14 <br />BOOK 72 PAGE 14 <br />