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service territory, so in effect the residents of South Beach would get the same rates that the Shores <br /> residents get. As rate setting is a legislative function for municipal utilities we'll be undertaking a <br /> rate study to establish rates, fees, and charges that are just and equitable,which are based on the <br /> cost of operating our utility. Once adopted, these rates will be implemented for all customers <br /> within the service territory. 'The only difference that the customer would see would reflect <br /> franchise fees, if any, or a utility tax. The ratemaking will be done in an open and transparent <br /> process including a public hearing at which time all customers within the service territory will <br /> have the opportunity to be heard concerning the proposed rates,fees, and charges. <br /> Mr. Brown asked so what is the timing of that exercise that you are proposing. <br /> Ms. Cindy Lawson, Finance Director, said what we're looking to do is to undertake a rate study <br /> starting probably in the fall with public hearings maybe towards the end of the first quarter next <br /> year with rates that would go into effect either late this coming fiscal year or like the first part of <br /> the next one, say like October or so and that's in conjunction with the timing of two (2) other <br /> things that really affect the rate study and that is the beginning of the design for the Water <br /> Reclamation Facility that should start later on this year. That would give us a better idea of what <br /> the cost of that project is and the development of our financing plan for that project and the timing <br /> of any bonds or borrowing associated with that. She said once they know those two (2) things <br /> with better certainty it will allow them to make a better rate study and better timing on when the <br /> rate increase might take place. <br /> Mr. Dylan Reingold, County Attorney, said I was just going to ask very simply is, are you telling <br /> me publicly that it is not the intent of the City of Vero Beach to abide by the Franchise Agreement <br /> that you have with the Shores, not just with reuse rates,and I know that's a separate lawsuit and I <br /> don't expect you to talk about it, but with regards to water and wastewater rates through 2027. <br /> Mr. Falls said they intend on having a rate study and adopting rate seasoned charges that reflect <br /> the operating cost of our utility. <br /> Mr.Brown said so,I'm just trying to digest this because that's a significant change. He said yeah, <br /> I'm filled with questions. One (1) of the things is obviously the franchise between the City and <br /> the Town is not between the County and the City, but it sounds like,what I'm hearing is what Mr. <br /> Reingold said the plan is the City is going to basically charge the Town whatever the City's rates <br /> are based this rate study, at that time and not,and:again it's not our agreement so my rudimentary <br /> understanding of that is that the City had said they would charge County rates during the term of <br /> the franchise with the Town so the City's position has changed that you're not going to do that; <br /> that you're going to charge whatever the City rates are based on whatever rate study is done. <br /> Ms. Lawson said okay, so not whatever the City rates are because the City rates currently have not <br /> had a rate study undertaken with regards to them in quite some time. What we're sayingis that <br /> we're look at the cost of operating our utility for all the customers that our utility serves and we're <br /> going to have a rate study that encompasses serving all of our customers rates, fees, and charges <br /> 2 07/22/21 Conflict Resolution <br />