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additions thereto thereafter constructed or acquired (the "Sys(em"). The System includes all property, real, personal and mixed, rights, powers, licenses, easements, rights of way, privileges, franchises and all other property or interests in property of whatsoever nature, including but not limited to vehicles, rolling stock, buildings, pipes, pumps, machinery, tanks, mains, conduits, meters and other equipment, used or useful in connection with ownership, operation and maintenance of such water or sewer systems by the County. The System provides water and sewer services to a portion of the County's population, with a majority of the other County residents being serviced by private wells and septic tanks and the City of Vero Beach, Florida, which operates its own water and sewer systems. The County presently operates three water plants, the south County plant ("South County Plant"), the North Beach plant ("North Beach Plant') and The Rivers Edge Plant. The water plants have a present nominal 4.: capacity of 8.5 million gallons per day ('MGD"). The County has expanded its production capacity for the South r County Plant to 6S MGD and is currently constructing an expansion of the plant by 1.5 MGD for a total of 8.0 MGD capacity. On November 1, 1990, the County consummated the purchase of the business and assets of the >1' North Beach Water Company consisting of the North Beach Plant (with a treatment capacity of 500,000 gallons i.< per day) and a distribution system in the northern portion of the County ("North Beach Water System"). The i{ North Beach Plant has been expanded by 1 MGD for a total capacity of 1.5 MGD. The County anticipates construction of a 3 MGD North County Reverse Osmosis Water Treatment Plant within the next two years. The ti County currently operates over 182 miles of size 2" to 30" water distribution mains. The County is currently constructing a very aggressive assessment expansion program of the water system to serve approximately 7,000 one-half acre or less lots located in the County service area. Presently, wastewater treatment and disposal service in the unincorporated portions of the County is provided by approximately 16 wastewater plants. Nine of these plants with an aggregate 3.985 MGD of treatment capacity are owned and operated by the County. Of the facilities owned and operated by the County, the three largest account for nominal capacity of 3 MGD in the aggregate. The remaining six treatment plants, in the aggregate, account for additional capacity of approximately .985 MGD. The County also has the right to have treated up to 1.39 MGD at the municipally owned City of Vero Beach wastewater treatment plant. The County is expanding each of the three largest plants from a treatment capacity of 1 MGD to a capacity of 2 MGD, with the completion of such expansion expected in 2 years. The County currently has a 2 MGD South County Wastewater Treatment Plant under design. The plant is scheduled for construction within 2 years. The County currently owns and operates over 173 miles of size 3" to 24" wastewater collection system mains. The Regional Sludge Facility funded with the Series 1991 Bonds is scheduled to open May 1, 1993. The Facility was needed to meet the County's immediate and future needs for the treatment and disposal of sludge (the solid or semi-solid residual by-product of the wastewater Treatment plant process), septage (the liquids and solids removed from domestic septic tanks and portable toilet facilities), and grease (The material taken from commercial grease traps typically found at food processing facilities and restaurants). A grant (the "Grant") from the Florida Department of Environmental Regulation ("FDER") and the Environmental Protection Agency ("EPA") was used to pay a portion of the costs relating to the Regional Sludge Facility. The final amount of the Grant is subject to review and approval by FDER and EPA. The County has received approximately $1,767,000 in grant funds through March 1, 1993, and expects that the total amount of the Grant will be approximately $2,100,000. System Staff The System presently employs 102 persons. The System is managed by Terrance G. Pinto, Director of Utilities. It is the opinion of management that the System enjoys excellent labor relations.