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Director Pinto noted that there is some misunderstanding on <br />the City's part that we are going to have to take their septage <br />into our facility without an agreement with the city. The <br />reality is that if we build a facility and receive federal funds <br />towards the portion allocated to the City, we have to have a <br />service agreement. If the County chooses to build a facility <br />without federal funding, then we can do whatever we want with the <br />City and there is not a requirement for an agreement. The <br />agreement that is required between us and the City is to protect <br />the interest of the federal funds that are put in the system. <br />Commissioner Scurlock believed there also is a difference as <br />to whether you handle this as a solid waste activity or a sewer <br />activity. He believed we are charged with the recycling program <br />and we are charged with the solid waste aspect of Indian River <br />County. We are not charged with the sewer activity countywide. <br />He, therefore felt some attention needs to be paid to whether <br />this is to be under the SWDD or whether this is going to be a <br />part of our Utility Division because he felt there are some <br />serious legal abilities we have under one scenario versus the <br />other. For example, if you took the Solid Waste District which <br />we have established and have interlocal agreements, and we <br />treated this as part of the Solid Waste Division, could we not <br />take a rate approach and a guaranteed revenue stream as a part of <br />that charge in this activity, and, therefore, they would have no <br />option about whether they wished to participate or not. <br />Director Pinto advised that staff has looked at that <br />scenario. If we establish a charge that runs with the SW charge <br />for those who have septic tanks and we build our facility based <br />on that specific income, then in the county where we also control <br />the flow of sludge, when there is a transfer of septic tanks to <br />public sewer, the revenue that you lose from someone who is no <br />longer on a septic tank shifts over and you pick it right back up <br />because they are now a wastewater customer. If you are dealing <br />with a city and you use that billing system for their septage and <br />DEC 21 <br />989 <br />7 <br />EAGGx.FArr <br />', <br />rlUC re, <br />