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NOV 2 -,3 989 <br />BOOK 8 F'". 481 <br />DATE: <br />TO: <br />FROM: <br />OCTOBER 10, 1989 <br />JAMES E. CHANDLER <br />COUNTY ADMINISTRA <br />TERRANCE G. PINT <br />DIRECTOR OF UTILI -ERVICES <br />'PREPARED & <br />STAFFED BY: HARRY E. ASHER <br />ASSISTANT DIRECTOR OF' UTILITY SERVICES <br />SUBJECT: ACQUISITION OF PELICAN POINTE UTILITIES, INC., SERVING <br />PELICAN POINTE DEVELOPMENT <br />BACKGROUND: <br />The Pelican Pointe Water and Sewer Utility currently serves <br />approximately two hundred and forty-four customers within the <br />Pelican Pointe Development and Pelican Shoppes. <br />The wastewater treatment plant is an 0.090 million gallons per day <br />(MGD) contact stabilization process wastewater plant. <br />The water treatment plant is an 0.036 MGD reverse osmosis water <br />plant, with a blend capacity of 0.049 MGD, for a total capacity of <br />.0.085 MGD. <br />`.The utility wishes to sell the system and, as a result, the County <br />has been negotiating its purchase. The negotiated price at this <br />time is $194,124.00. <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 />Acquisition costs are to be financed .at no interest through a <br />surcharge of $7.00 per customer per month, for a period of eight <br />years, or until $194,124.00 has been paid. Based upon an average <br />usage of 4,000 gallons per month per customer paying current Indian <br />River County rates, plus the estimated $7.00 per customer per month <br />surcharge, the customers would realize an estimated increase of <br />$2.44 in their monthly charges. <br />RECOMMENDATION: <br />The staff of the Department of Utility Services recommends that the <br />Board of County Commissioners approve the proposed purchase <br />agreement, based upon the outcome of the Public Hearing. <br />Director Pinto informed the Board that total build -out will <br />be approximately 100 more units. There is a 7 year buy-out <br />provision under the franchise and a specific formula to establish <br />the price, which was negotiated down to $198,000. Mr. Pinto <br />felt this purchase will enhance the County's regionalization of <br />utilities and will, in the long run, be beneficial to the users <br />of the system. He explained that we intend to make use of the <br />24 <br />