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DATE: JUNE 27, 1989 <br />TO: JAMES E. CHANDLER. <br />COUNTY ADMINISTRAT , <br />FROM: TERRANCE G. PINT 0 <br />DIRECTOR OF UTILI VICES <br />PREPARED AND HARRY E. ASHER <br />STAFFED BY: ASSISTANT DIRECTOR OF/A�'INISTRATION <br />DEPARTMENT OF UTILITY SERVICES <br />SUBJECT: PROPOSED WASTEWATER SYSTEM LEASE AGREEMENT BETWEEN <br />CUSTOMER SERVICE, INC., AND INDIAN RIVER COUNTY <br />BACKGROUND: <br />Customer Service, Inc., currently owns and operates a .100 million <br />gallon per day wastewater system in Indian River County, Florida, <br />under a franchise known as "Customer Service, Inc., Water and Sewer <br />Franchise" (CSI). <br />Indian River County currently supplies water service to the <br />approximately 250 customers served by Customer Service, Inc., <br />wastewater system. Customer Service, Inc., has approached Indian <br />River County with a proposal to lease/operate its existing <br />wastewater system for a period of ten years. The proposed lease fee <br />is $50.00 per year for. the ten year period, plus taxes. Indian <br />River County, through the Department of Utility Services, currently <br />bills the existing customers of Customer Service, Inc., for the <br />wastewater service through a Billing Agreement with Customer <br />Service, Inc. <br />ANALYSIS: <br />Indian River County's policy has been to acquire/service such <br />privately held utilities to expand its regional and subregional <br />water and wastewater facilities. The leasing of this system will <br />assist Indian River County in implementing this policy, in addition <br />to expanding the customer base and service area of the County's <br />wastewater system. It is projected that Indian River County will <br />have its regional facility servicing this area within the term of <br />the lease. <br />Wastewater services can be provided to the Customer Service, Inc., <br />existing franchise area without any significant effect on the <br />operating costs of the County facilities and with no effect on the <br />rates and charges of the existing County customers. <br />It is proposed that, with the approval of the Lease Agreement, all <br />customers within the CSI franchise area pay the current Indian River <br />County wastewater rates, which will result in an increase over the <br />current rates of CSI. <br />RECOMMENDATION: <br />The staff of the Department of Utility Services recommends that the <br />Board of County Commissioners approve the attached Lease Agreement <br />for wastewater service with Customer Service, Inc., and approve the <br />implementation of Indian River County wastewater rates for the <br />Customer Service, Inc., franchise area, based upon the outcome of <br />the Public Hearing. <br />3 9 � ,�., � c.3 a <br />JUL 1 J9 ROOK j Fa - <br />