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Pr - <br />BOOK hJ FAGE 50i <br />for an explanation of the franchise surcharge. <br />County Attorney Vitunac responded that if the utilities had been provided by a private <br />company, the county would raise tax money by a franchise fee. The Board, some years ago, <br />decided that since the County was going into the business and displacing the private <br />company, that it should tax itself as if it were a private company and apply the 6% to non- <br />utility purposes. So, it is a source of revenue for the general fund or for whatever fund the <br />County chooses to use it. <br />Hank Gunther, Heron Cay, wondered if the rate adjustment other monthly providers <br />use for "snowbirds", which is usually half the regular rate, has been considered for water and <br />sewer customers. <br />Director Hubbs advised that staffhas pledged to look into that concern after a comfort <br />level has been reached with the new rates. Changes are being made, but he realizes that the <br />proposed changes will not resolve all concerns of all customers. He could not disagree with <br />Mr. Gunther. He believed eventually a reduction for seasonal users would be possible. <br />Mr. Gunther raised another concern about the number of systems' water leaks (due <br />to the material used) and asked if there is a contingency or reserve for replacement of the <br />existing pipes. <br />Director Hubbs agreed that, once again, Mr. Gunther was correct that there is a lot of <br />"blue polybutylene" pipe which was cheap. When newly developed it was supposed to be <br />good, but experience has proved it to be a source of a lot of the leaks in the system. The <br />department is in the process of replacing that pipe with amore standard PVC or polyethylene <br />pipe. He advised that 5% of the gross receipts from utilities is dedicated to renewal and <br />replacement (reserve fund), or about $815,000 annually, for that purpose. <br />It was determined that no one else wished to be heard and the Chairman closed the <br />public hearing. <br />Vice Chairman Adams inquired about the meaning of "cost plus overhead" found on <br />page 3 of the proposed schedule of rates and fees. She questioned the definition of <br />"overhead" and whether it was a fixed amount or a percentage. <br />Director Hubbs advised that would generally be for engineering, if required. There <br />is no fixed number for overhead. Unless there is office or administrative involvement, other <br />than just a work order generation, there would be no "overhead". <br />JUNE 229 1999 <br />WC <br />