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7. Additional investment required: The investment to upgrade the water and wastewater systems where required, is well within the County's ability, given the magnitude of financial resources of the County's water and wastewater system and the County's past, present, and planned commitments to maintaining and expanding service to meet effectively and efficiently the water and wastewater needs of the County's utility service area. The immediate needs of the system will be met from revenues generated from the system and_are a part of the revenue evaluation performed in determining the recommendation to purchase the system. 8. The alternatives to the purchase or sale and the potential impact on utility customers: If the County does not purchase the system the potential immediate impact on existing GDU utility customers could be up to an 113.6% increase in monthly utility rates. If the County does not purchase the system, it could be purchased by another Utility company which could, if justified, seek additional increases in rates. If the current franchise remains private, the utility customers could be faced with major rate increases necessary to cover increased regulatory requirements. The County Utilities Department is currently moving to regionalize water and wastewater service within the County. If the County does not purchase the system, a South County Wastewater Plant must be constructed in the South County area (currently planned for the South County RO Plant Site on Oslo Road). The impact on the utility customer could be higher -costs due to lack of economy of scale. 9. Ability of the purchaser to provide and maintain high quality and cost-effective utility service: The County's finished water and wastewater treatment at all of its plants is in compliance with State and Federal regulatory requirements, demonstrating the ability .of the County to provide and maintain high levels of quality and service. The cost of providing water and wastewater service is reasonable considering the type and size of the production and treatment facilities. The County's sources of funding (i.e., County's water and wastewater impact fee fund) demonstrate the effective use of capital in financing improvements to the water and wastewater systems. Conclusion The purchase of the General Development Utilities, Inc. (Vero Highlands/Shores Franchise Areas) benefits both the customers of the County and General Development Utilities, Inc.. The existing GDU customers will realize a consistent quality of service and a stable rate environment. Indian River County's water and wastewater utility began in June, 1978, with the acquisition of a small utility system in the Gifford area. The purpose of the acquisition was to improve water and wastewater service to the residents. Since then, the utility system has grown from an initial customer base of 300 water and 126 wastewater equivalent residential units.(ERUS)-to more than 24,049 water and 23,722 wastewater EROS at this time. The GDU water and wastewater system and'its customers can be readily incorporated into the County customer base without an effect on the operating costs of the County facilities, and with no effect on the rates and charges of existing County customers. 35 BOOK 90 P u & AUG 171993