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the County has had a very stable rate, and, in fact, did not think we have had a water rate increase in five years. This was confirmed by Director Pinto, who explained that we have had a stable rate because growth of the system brings in revenues that are keeping up with inflationary problems, and he further advised that he did not anticipate any rate increase in the next year. Chairman Scurlock asked if this acquisition has anything to do with the acquisition of the wastewater system or if that is a separate independent issue. Director Pinto stated that they are supposed to be separate and independent. We are presently negotiating the purchase of the Sea Oaks Wastewater Company, and we hope very much they are not mixing the two together. The Chairman asked if acquisition of the wastewater system would be on the same basis we are attempting here, and Director Pinto confirmed that it would, i.e., that it would have no detrimental effect on existing customers. Chairman Scurlock asked what impact Director Pinto felt coming onto the county system will have in terms of reliability. Director Pinto pointed out that the county already operates a reverse osmosis treatment plant, and we, therefore, have the expertise. In addition, we have the entire county system to depend on if there are any problems; so, he felt it will enhance the operation considerably. The Chairman asked if Director Pinto anticipates a more stable rate structure because of the large customer base of the county utility system, and this was confirmed. Commissioner Eggert asked, re mixing these up, if it is felt there is any problem with water versus sewer, and Director Pinto did not know of anything specific, but noted it is his understanding they can't mix the two. The one entity, North Beach Water Company,is owned by several people, and Sea Oaks wastewater plant is owned by one. APR 12 198 15 BOOK .72 F',GE 15