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SEP 2 L 89 BOOK 78 IF'gIA <br />Utilities Director Pinto made the following presentation: <br />DATE: JULY 20, 1989 <br />TO: JAMES E. CHANDLER <br />COUNTY ADMINISTRATOR <br />THRU: TERRANCE G. PINTO <br />DIRECTOR OF UTILITY SERVICES <br />FROM:: HARRY E. ASHER <br />ASSISTANT DIRECTOR OF UTILITY SERVICES <br />SUBJECT: ACQUISITION OF HOBART LANDING SERVICES COMPANY <br />WATER UTILITY SERVING HOBART LANDING SUBDIVISION <br />BACKGROUND <br />Hobart Landing Services Company Water Utility operates under a <br />franchise granted by Indian River County. <br />Hobart Landing Services Company Water Utility currently ,serves <br />approximately 35 customers within the Hobart Landing Subdivision. <br />There will be a total of 47 customers at buildout. <br />Hobart Landing Services Company has approached the County to take <br />over the water plant and distribution system at no cost to. Indian <br />River County. As required by the Hobart Landing Services Company <br />franchise, Hobart Landing Services Company has escrowed impact fees <br />and repair and replacement funds; including interest. The current <br />balance of the repair and replacement fund as of July 14,. 1989, <br />including interest, is $9,178.35. Under the takeover agreement, the <br />repair and replacement funds are to be transferred to the County to <br />be utilized to correct any deficiencies in the system. <br />The Water Treatment Plant is a 7.5 TGD water plant; it is an <br />aeration/chlorination type plant with a raw water feed. The <br />distribution plant consists of approximately 1,675 feet of 6" ACP, <br />1,000 feet of 4" ACP, and 2,290 feet of 2" galvanized pipe. <br />ANALYSIS _ <br />The County's policy has been to acquire such privately held <br />utilities and, to expand its regional and subregional water and <br />wastewater facilities. Acquisition of this system will assist us in <br />implementing this policy for the North County area. <br />Based upon an average usage of -3,000 gallons per month per customer <br />paying current Indian River County. rates, the customers would <br />realize an estimated increase of $7.13 in their monthly charges. <br />RECOMMENDATION <br />The staff of the Department of Utility Services recommends that the <br />Board of County Commissioners conceptually approve the proposed <br />purchase agreement, based upon the outcome of the Public Hearing. <br />Director Pinto informed the Board that there will be no <br />funds paid for take over. We will assume the responsibility for <br />operation of the facility, and at the same time, have turned over <br />to us the escrowed impact fees and also a fund of some $9,100 <br />that exists for Renewal & Replacement (R&R). The facility is <br />13 <br />