HomeMy WebLinkAbout9/14/1977WEDNESDAY, SEPTEMBER 14, 1977
THE BOARD OF COUNTY COMMISSIONERS OF INDIAN RIVER COUNTY,
FLORIDA, MET IN SPECIAL SESSION AT THE COURTHOUSE, VERO BEACH, FLORIDA,
ON WEDNESDAY, SEPTEMBER 14, 1977, AT 3:00 O'CLOCK P.M. PRESENT WERE
WILLIAM C. WODTKE, JR., CHAIRMAN; ALMA LEE Loy, VICE CHAIRMAN; WILLARD W.
SIEBERT, JR.; EDWIN S. SCHMUCKER, AND R. DON DEESON. ALSO PRESENT WERE
JACK G. JENNINGS, COUNTY ADMINISTRATOR; GEORGE G. COLLINS, JR., ATTORNEY
TO THE BOARD OF COUNTY COMMISSIONERS; AND VIRGINIA HARGREAVES, DEPUTY CLERK.
THE CHAIRMAN CALLED THE MEETING TO ORDER AND ANNOUNCED THAT
THIS IS A SPECIAL MEETING CALLED FOR THE PURPOSE OF HEARING A REQUEST
FROM MID -FLORIDA UTILITIES, INC., FOR AN INCREASE IN WATER RATES.
THE HOUR OF 3:00 O'CLOCK P. M. HAVING PASSED, THE DEPUTY CLERK
READ THE FOLLOWING NOTICE WITH PROOF OF PUBLICATION -ATTACHED, TO -WIT:
- -
BEFORETHE BOAROO� COUNTY
COMMISSIONERSOF INDIAN RIVER
COUNTY, FLOf<IOA
In Re:Application of MID FLORIIIA
VERO BEACH PRESS -JOURNAL
UTILITIES, INC., for authority to
Increase its rules for water service.
NOTICE OF HEARING
Published Weekly
The Board Of County Cowmissloners of Indian River County. Florida, will held a
"411`9 on
Wednesday, September la. 1977, at 3:00 P.M., in its hearing room to pre Indian Rivrr
Ca,,nty
Courthouse, Vero Beach, Florida, en the application of Mid -Florida Utilities, Inc., lar
authority to
Vero Beach, Indian River County, Florida
mala effective the allowing water rates:
Water Rate TaNff Prosent
proposed
Rates
Rates
COUNTY OF INDIAN RtVERt
STATE OF FLORIDA
'Applicability: To all metered customers.
Before the undcnigned authority personalty aPPearcd J, J. Schumann, Jr, who on oath
RATE:
says that he is Business Managar of the Vero Beach Press -Journal, a weekly newspaper published
Florida; that the attached copy of advertisement, being
Quantity Per Mento.
33.00
Par lJtmth
at Vero Beach in Indian River County,
33.71
• � h��'
3A galsm,
All mer 3,V_o gallons, per 1,000 $1.06
All Mar
gallons
f1.68
a
cr
MINIMUM CHARGE:
33.W
to th/ematter of Y/Lt i-ea�.�r
The minimum motdhtycharge.
38.11
WATER RATES— DUPLEX
Prescott Unit 35.06 for 3.1.0 gallons-110mantMy allowance
Seco
Mud Unit 37.50 will p to ,VM 9 allowance
MWmum S7.50 far LIP to a,U1<1 gallons per mwith
the Court, was pub-
Therealter, add thereto water rate for
each additional I,4J3 gatl0ns billed
mnthfy as set forth in above schedule.
. Bshed ;n said newspaper in the issues of a !� ' �` '
Proposedt First unit $3.73 for 3,000 Oa1Mns monthly allowance
Second unit $4.11 far 1,000 Pallas allowance
Minimum $17.34 for up to 0M oal:ons per month
Thereatadd theretowater rate for
each additional 1.W0 gallons billed '
Affiant further says that the said Vero Beach Press-loumal fs a newspaper WMished at
nronthly as set forth in above schedule.
Yero Beach, In said Indian River Costnly, and That the said nevrpaDer has heretpfore
WATER RATES —MULTIPLE UNITS
been Continuously Wblished in said Indian P.iver County, Florida, weekly and Fos been entered
in Vero Beach, In said Indian River County, Florida
Present: First Unit $5.00 1w 3,0]D gallons monthly allowance.
as samnrl class mail matter at the post office
• for a of one year next proceeding the first publication Of the attached copy of adver-
Each adduional unit 117:50 with allowance
period
rise Arid affiant further says that he has ncithar paid nor promised any person, firm w
H LOW gallons par menet for each sato
Thereafter,
C% any discount, rehate, commission or refund for the purpose of securing this adver-
unit. and thereto me aI_
basic water rain for
tisement for publication in the said newspaper.
each additional
1.470 gallons billed.
7
_
for 3.000 monthly ahowance.
SYforr. to unto subscribed befor]mthis d f A.f7
Eac$0.2h
Proposed: First Unit Of 1, additiMIS unit silt foto allowance
l Ltnit
Of 1. greats per mmol fw each such
'✓ �ys1�,y\,
Thereafter, add thereto the above
basic tfa
basic water rates for each additional
(l�usin s ana3er)
1.000 pallets baled.
(Clerk of the Circuit Court, Indian Ai er County, Florida)
DATED this ISMa•day of August, W17n.Jr.
VIAL)
Chairman of the Board of County
Cammfsslonars, Indian River County
71. 78, Sept. 6 11, 1977.
MOK 31 PAUF 3
SEP 1419`7
B. KENNETH GATLIN, ATTORNEY, P. 0. Box 669, TALLAHASSEE,
FLORIDA, STATED THAT HE IS HERE ON BEHALF OF THE APPLICANT, MID -FLORIDA,
SEEKING AUTHORITY TO INCREASE ITS RATES FOR UTILITIES SERVICE IN THE
COUNTY, HE ANNOUNCED THAT HE INTENDS TO PRESENT THREE WITNESSES: MR.
CARROLL WRIGHT TO EXPLAIN THE OPERATIONS OF THE COMPANY - MR, DAVID W.
COFFEY TO SUPPORT THE FINANCIAL DOCUMENTS PRESENTED - AND MR. H. G. MULLE
AS AN EXPERT WITNESS ON RATE OF RETURN FOR UTILITY COMPANIES.
ATTORNEY COLLINS SWORE IN CARROLL WRIGHT, 10651 N. KENDALL
DR NORTH MIAMI, FLORIDA, VICE PRESIDENT AND GENERAL MANAGER OF THE
SOUTHEAST REGION OF GENERAL WATERWORKS, INC.
MR. WRIGHT INFORMED THE BOARD THAT MID -FLORIDA IS NOT UNDER
HIS DIRECT SUPERVISION AND CONTROL, BUT IS DIRECTLY SUPERVISED BY CARL
OVERSTREET, WHOSE OFFICE IS IN WINTER PARK, FLORIDA. MR. WRIGHT THEN
DESCRIBED THE BOUNDARIES OF THE MID -FLORIDA FRANCHISE AND NOTED THAT
GENERAL WATERWORKS ACQUIRED MID-FLORIDA,.INC., IN 1962, HE NOTED THAT
MID -FLORIDA SERVICES APPROXIMATELY 1,000 WATER CUSTOMERS, AND THEY
KEEP ONE MAN IN THE AREA TO OVERSEE THE SYSTEM, HE STATED THAT THE
MANAGER FROM WINTER PARK COMES OVER TO CHECK THE SYSTEM PERIODICALLY,
BUT AT. UNANNOUNCED AND VARYING TIMES, THE EXISTING.FACILITY CONSISTS
OF 3 WELLS OF APPROXIMATELY 100' DEPTH HAVING A CAPACITY OF 634,000 G.P.D.
RAW WATER FROM THESE WELLS IS.PUMPED TO SOFTENING UNITS AND THE SOFTENED
WATER IS STORED IN AN ELEVATED TANK. MR. WRIGHT DESCRIBED THE 11 MILES
OF DISTRIBUTION LINES OF VARIOUS DIAMETERS, AND PRESENTED FIGURES ON THE
AMOUNTS OF WATER SOLD IN 1974, 1975 AND 1976, HE SPOKE OF MILLIONS
OF GALLONS OF WATER "UNACCOUNTED FOR, AND PRESENTED THE FOLLOWING
PERCENTAGES OF it UNACCOUNTED FOR" WATER:
1974 - 21%
1975 - 19,07%
1976 - 9.5%
MR. WRIGHT INFORMED THE BOARD THAT IN 1974 THEY INSTALLED.
NEW EQUIPMENT AT A COST OF $34,686. HE NOTED THAT IN 197E DESIGNS WERE
PREPARED FOR RELOCATION OF CERTAIN LINES IN THE ROCKRIDGE AREA WHICH
SEP 141977
4
R�GK 31 PA,'- 31
IS NECESSITATED BY STREET WIDENING REQUIRED BY THE DOT, THIS HAS
BEEN BID AT $34,580 AND SHOULD BE ACCOMPLISHED IN 1977. MR. WRIGHT
CONTINUED THAT THE COMPANY HAS A LIMITED SUPPLY OF WATER AND WILL
ONLY EXTEND SERVICE TO THOSE PRESENTLY LOCATED ON THE MAIN. IT IS
NOT EXTENDING SERVICE TO NEW DEVELOPERS. THEY WILL, HOWEVER, DELETE
AREAS FROM THEIR FRANCHISE TO ALLOW NEW DEVELOPERS TO SET UP THEIR OWN
SERVICE. MR, WRIGHT SPOKE OF THE DIFFICULTY OF INCREASING THEIR WATER SUPPLY,
NOTING THAT THE NUMEROUS SEPTIC TANKS PROHIBIT THEM FROM FINDING A NEW
SOURCE OF UNCONTAMINATED WATER. HE STATED THE NEAREST SOURCE OF WATER IS
SEVERAL MILES AWAY, WHICH WOULD MAKE IT TOO EXPENSIVE TO BE FEASIBLE.
ATTORNEY COLLINS SWORE IN MR. DAVID COFFEY WHO IS TO GIVE
ACCOUNTING AND FINANCIAL TESTIMONY.
MR, GATLIN REQUESTED THAT MR. COFFEY IS TESTIMONY, TYPED AND
PRESENTED IN A BLUE FOLDER, BE ACCEPTED AND MARKED "EXHIBIT I" AND
THAT THE ACCOUNTING DATA ENCLOSED IN A YELLOW FOLDER AND ENTITLED
"MID -FLORIDA UTILITIES, INC. - INDIAN RIVER COUNTY RATE CASE" BE
ACCEPTED AND MARKED "EXHIBIT 2." THESE DOCUMENTS ARE ON FILE IN THE
OFFICE OF THE CLERK.
MR. COFFEY STATED THAT THE RATE OF RETURN EARNED IN INDIAN
RIVER COUNTY FOR THE YEAR 1976 WAS ZERO, THE PRESENT RATE OF RETURN
IS ZERO, AND THE OPERATING INCOME FOR THE LAST 12 MONTHS WAS A'
NEGATIVE $5,029. HE INFORMED THE BOARD THAT IF THE REQUESTED RATES
ARE APPROVED, THE.RATE OF RETURN WOULD BE 10.9%.
ATTORNEY COLLINS SWORE IN H.G. MULLE OF HADDONFIELD, MEW
.JERSEY, WHO PRESENTED A DOCUMENT ENTITLED "TESTIMONY CONCERNING THE
COST OF CAPITAL AND FAIR RATE OF RETURN - H. G. MULLE" TO BE ACCEPTED
ANIS MARKED "EXHIBIT 3" AND A DOCUMENT ENTITLED "SUMMARY OF COST OF
CAPITAL AND FAIR RATE OF RETURN" TO BE ACCEPTED AND MARKED "EXHIBIT 4."
ATTORNEY.COLLINS POINTED OUT THAT THE TESTIMONY ALONE WAS 41
PAGES LONG AND ASKED IN WHAT DEPTH MR. MULLE WILL BE TESTIFYING, NOTING
THAT THE BOARD HAS NO KNOWLEDGE OF WHAT IS IN THE DOCUMENT JUST PRE-
SENTED AS AN EXHIBIT.
3
SEP 14 1977 1
aLG� . 31 WE 32
MR. GATLIN ANSWERED -THAT THE TESTIMONY OF MR. MULLE IS
TECHNICAL IN NATURE AND THAT HE WILL ASK MR. MULLE TO SUMMARIZE THE
TESTIMONY SO THE BOARD WILL KNOW WHAT THE EXTENT OF HIS RECOMMENDATIONS
ARE.
CHAIRMAN WODTKE SAID HE FELT THE POINT ATTORNEY COLLINS IS
TRYING TO MAKE IS THAT THIS PARTICULAR INFORMATION HAS NOT BEEN PRO-
VIDED TO THE BOARD PREVIOUS TO THIS TIME, BUT INFORMED MR. GATLIN
THAT HE MIGHT PROCEED IN ANY MANNER HE WISHED.
MR. MULLE STATED THAT HE IS PRESIDENT OF HIS OWN ECONOMIC
CONSULTING FIRM WHICH SPECIALIZES IN UTILITY RATE -OF -RETURN PRESENT-
ATIONS TO VARIOUS GOVERNMENTAL AGENCIES. HE STATED THAT HE HAS PRE-
SENTED TESTIMONY BEFORE 28 REGULATORY COMMISSIONS FROM COAST TO COAST
AND BEEN ACCEPTED BY ALL OF THEM AS AN EXPERT WITNESS. MR. MULLE
CONTINUED THAT HIS TESTIMONY IS TO SUPPORT THE RATE OF RETURN OF 10.9%.
HE STATED THAT HE DETERMINES THE MIX OF CAPITAL BETWEEN DEBT AND
EQUITY AND THEN ASSESSES THE LONG TERM DEBT AND COMMON EQUITY. MR.
MULLE WENT INTO A DISCUSSION OF THE OVERALL COST OF CAPITAL. HE
POINTED OUT THAT THIS TESTIMONY WAS PREPARED IN THE LATTER PART OF
1976 AND HELD OVER UNTIL 1977 FOR PROCESSING. AT THAT TIME ONLY IN-
FORMATION FROM 1975 WAS AVAILABLE, AND THIS INFORMATION MUST BE CON-
TINUALLY UPDATED. MR. MULLE INFORMED THE BOARD THAT THE PREPARED
TESTIMONY PRESENTED GOES INTO A GREAT DEAL OF DETAIL AND STATED THAT.
HE WOULD SWEAR TO ALL THE STATEMENTS CONTAINED THEREIN. IN CONCLUSION,
HE STATED THAT HE BELIEVED THAT A REASONABLE RATE OF RETURN SHOULD BE
BETWEEN 10-1/2 AND 11%.
CHAIRMAN WODTKE NOTED FOR THE RECORD THAT HE HAS RECEIVED
THE •FOLLOWING LETTERS OPPOSING THE PROPOSED RATE INCREASE WHICH HILL
BE RECEIVED AS EXHIBITS AND MARKED AS FOLLOWS:
4-A--R._L. LUCKENBAUGH 8/2
4-B - HENRY LEHAAN 8/30
4-C - MR. & MRS. PHILLIP A. YOUNG 8/30
4-1) - RONALD FAULKINHAM 8/24
4-E = GEORGE E. BULTEZ 9/7
4-F - MURRAY REESE 8/27
4-G - ERNESTINE PARK 9/7
3
33
SEP 14 1977 P�3bK �, PdGr
4-H - MARY BARNEY 9/11
4-1 - WILLIAM LINDSTROM 9/11
4-J - MILDRED O'NEIL 9/8
4-K - MRS. M. B.'LoCKERT 9/8
4-L - HERMAN C. KIPP 9/8
4-M - TROPIC GROVE CONDOMINIUMS (SGD. HAROLD CHATTAWAY) 9/14
4-N - ROCKRIDGE PROPERTY OWNERS ASSOCIATION
THESE LETTERS ARE ON FILE IN THE OFFICE OF THE CLERK.
MR, GATLIN OBJECTED TO THESE LETTERS BEING PRESENTED AS
EVIDENCE, AND ASKED THAT HIS OBJECTION. BE PUT ON RECORD AS HE FEELS
THESE CAN ONLY BE CONSIDERED HEARSAY EVIDENCE.
DARRELL RILEY, PRESIDENT OF ROCKRIDGE PROPERTY OWNERS
ASSOCIATION TOOK THE FLOOR AND SPOKE OF UNKEPT PROMISES AND LACK,OF
MAINTENANCE, AND INFORMED THE BOARD THAT THEY FEEL THE PROPOSED RATE
IS NOT JUSTIFIED AND WOULD LIKE TO CALL FOUR WITNESSES TO SPEAK FOR
THEIR ASSOCIATION:
ATTORNEY COLLINS SWORE IN THE FOLLOWING:
.JOSEPH BLAKE
NANCY LOCKE
AISY LLOSE
JOHN MAHER
JOSEPH BLAKE PRESENTED TO THE BOARD A PETITION WITH 165
SIGNATURES PROTESTING THE CONDITION OF THE WATER AS WELL AS THE
PROPOSED RATE INCREASE.
COMMISSIONER LOY ASKED IF MR. BLAKE MEANT 4,000 GALLONS FOR
$5.00 AS STATED IN THE PETITION AS OTHER INFORMATION HE HAD PRESENTED
MENTIONED 5,000 GALLONS FOR $5.00.
MR. BLAKE STATED THAT WAS AN ERROR.
THE PETITION PRESENTED BY MR. BLAKE WAS ACCEPTED AND MARKED
"EXHIBIT 5." THE FIRST PAGE OF THE PETITION IS -MADE A PART OF THESE
MINUTES. THE ENTIRE PETITION IS ON FILE IN THE OFFICE OF THE CLERK.
SEP 14 1977
N
5
WK 31 PAGF 34
P\ocfe7i%s Pjolisztg Dcunvu <: {7qs .ociation, )tc.
ROCKRIDGE -- ' VERO BEACH, FLORIDA
We the undersigned -of the ROCrRIDGE PROPERTY 'OWNERS ASSOCIATION, INC.
and CUSTOMERS of the MJD-FLORID, UTILITIES INC., feel that since our
last public hearing, April 10, 1974, that the quality of the water -has
not improved. We are protesting the condition of our water and we feel
that the rate for our water is out of line. We also feel a fair rate
would be 4C00 gallons for $5.00 plus $1.00 for each additional 1000
gallons, instead of the present 3000 gallons minimum for $5.00. In
most cases our bills have increased double and triple since the rate
4 ^�_nzcn . . .. ..-
SEP
..
SEP 141977 - moK 31 PA,r- :35
MR. GATLIN ASKED THAT A CONTINUING OBJECTION BE PUT ON RECORD
AS TO THE RECEIPT OF THESE DOCUMENTS AS EVIDENCE.
MRS, DAISY CLOSE SPOKE IN REGARD TO THE -QUALITY OF THE WATER,
SHE INFORMED THE BOARD THAT SHE HAD FOUND IT NECESSARY TO HAVE A
WATER PURIFIER INSTALLED UNDER HER SINK AT A COST OF $102.00. THIS
TYPE PURIFIER HAS A CHARCOAL FILTER WHICH HAS TO BE REPLACED AT LEAST
TWICE A YEAR FOR $8,00 EACH:TIME. SHE STATED THAT SINCE NOVEMBER OF
1975 IT HAS COST HER $136.00 OVER AND ABOVE THE PRESENT WATER RATE TO
OBTAIN WATER THAT IS DRINKABLE, WHICH WOULD WORK OUT TO A RATE OF ABOUT
$12.50 PER MONTH. SHE CONTINUED THAT MANY PEOPLE BUY THEIR DRINKING
WATER, WHICH COSTS ABOUT $8.00 PER MONTH, AND OTHER PEOPLE FILL GALLON
JUGS AT ANY AVAILABLE PLACE IN VERO BEACH. MRS. CLOSE STATED THAT THEY
CONSIDER MID -FLORIDA WATER UNDRINKABLE: IT TASTES AWFUL, IS DISCOLORED,
AND DISCOLORS THE FIXTURES.
MR. RILEY PRESENTED TO THE BOARD AS EXHIBIT 6, A CERTIFICATE
FROM THE INDIAN RIVER COUNTY HEALTH DEPARTMENT STATING THAT A SAMPLE
OF MID -FLORIDA WATER SUBMITTED BY ANN SEDGES FOR ANALYSIS WAS UN-
SATISFACTORY.
MR. GATLIN OBJECTED TO THIS BEING SUBMITTED AS EVIDENCE
BECAUSE THE PERSON WHO ACTUALLY HAD THE TEST DONE HAD NOT SUBMITTED IT.
MR..RILEY CALLED MRS. SEDGES FORWARD AND ATTORNEY COLLINS
SWORE HER IN.
MRS. SEDGES STATED THAT SHE LIVES AT 1595 10TH PLACE AND
IDENTIFIED THE CERTIFICATE AS ONE GIVEN TO HER BY THE INDIAN RIVER
COUNTY HEALTH DEPARTMENT FOR AN ANALYSIS ON A WATER SAMPLE TAKEN FROM
HER SINK. MRS. SEDGES STATED THAT SHE OBTAINED A STERILIZED BOTTLE
FROM THE HEALTH DEPARTMENT AND FOLLOWED THE INSTRUCTIONS GIVEN HER
IN REGARD TO TAKING A SAMPLE OF THE WATER. COPY OF EXHIBIT 6 IS
HEREBY MADE A PART OF THE MINUTES.
7
• BOOK 31 PAU :36
�* 'F 14
1977
Y 7
— —1— n-..-A--n1 n1 14-slt6 -4 RahnhilHatis- SaMiCal •
BUREAU OF LABORATORIES
N. J. SCHNEIDER. PHU. MPH. cNIEF
DATE COLLECTED CO _ Y
COLLE TOR
DATE RECD
DATE TCtiTED
TTPE OF CITY-TOWNr77RLR.PK.
INST.
SCHOOL BOTTLED
MOTEL
REST
DAINY
POOL H
ME
OTHER
SUPPLY
NAME OF SID OR LOCALITY BEING SAMPLED NAME
ON LOCATION OF WATER PLANT
��
A11V SE�c .s
_-
TYPE OF
ROUTINE
RE -CHECK I
MAIN CLEARANCE
WELL SURVEY
OTHER
SAMPLE
JAX
MIAMI
TAMPA
TALLA.
PENSA.
ORL. W.
P. B.
APAL.
COUNTY
LAB
NAME AND MAILING ADDRESS OF PERSON/ FIRM TO RECEIVE REPORT
REMARKS
1
RIVER COUNTY HEALTH DEPT.
INDIAN
2525 14th Avenue
-
Vero Beach, Florida 32960
L_ J
LAB. NO.
LOLL.
NQ
SAMPLING PAINT
APPEAR-
ANCE
CI
RES'D
PH
I.B.
48
BG
48
MPN
100 MLS
MF
100 MLS
NON -
COLIFORM
L/
WATER BACTERIOLOGY n`- AFTER SIX MONTHS V`V
INTERPRETATIONS -RECOMMENDATIONS
AT TIME SAMPLE TAKEN:
❑ SATISFACTORY
UNSATISFACTORY
IL W. JENNINGS, R.S. 1
DIRECTOR, ENVIRONMENTAL HEALTH ❑ RE -SUBMIT
INDIAN RIVER CO. HEALTH C ?T<
BY: VERO BEACH, FLORIDA - 32960
L 828 (REV. 73) NAME _ TITLE V
cry
NANCY LOTT OF 620 16TH AVENUE CAME FORWARD AND THANKED THE
UTILITY FOR FLUSHING THE LINES, NOTING THAT FOR THE FIRST TIME IN OVER
3-1/2 YEARS THE WATER HAS BEEN CLEAR. MRS. LOTT STATED THAT IT WOULD
APPEAR MID—FLORIDA HAS 1,000 CUSTOMERS, AND WITH THE AMOUNT OF MONEY
COLLECTED FROM THIS MANY CUSTOMERS AND ONLY ONE EMPLOYEE TO RUN THE
ma 31 PAGr 37
8
ma 31 PAGr 37
SYSTEM. SHE WONDERED WHERE ALL THE EXTRA MONEY WENT. SHE INFORMED
THE BOARD THAT SHE ALSO HAD FOUND IT NECESSARY TO INSTALL EQUIPMENT
TO SOFTEN AND PURIFY THE WATER AND WITH THESE EXTRA NECESSITIES,
THE COST OF HER WATER ADDS UP TO ABOUT $15.00 A MONTH.
.JOHN MAHER NEXT SPOKE, NOTING THAT FOR A COMPANY THAT IS
NOT MAKING ANY MONEY, MID -FLORIDA HAS A GREAT MANY HIGH-PRICED EXPERTS
PRESENT TO PROVE A POINT. HE FELT THE CASE THEY PRESENTED ONLY SET
OUT WHAT THE UTILITY COMPANY WANTS AND DID NOT GIVE ANY CONSIDERATION
TO WHAT THEY WOULD DO FOR THE CONSUMER, MR. MAHER THEN SUBMITTED AS
EXHIBIT 7 A CLIPPING FROM THE PRESS ,JOURNAL IN REGARD TO A LEAKAGE
IN HIS AND A NEIGHBOR S BACKYARDS OF AN ESTIMATED 400,000 GALLONS
OF WATER OVER A TWO WEEK PERIOD. HE NOTED THAT THIS LOSS OF WATER
DIDN'T SEEM TO BOTHER MID -FLORIDA IN VIEW OF THE TIME IT TOOK THEM
TO RECTIFY THE SITUATION. EXHIBIT 7 IS HEREBY MADE PART OF THE
MINUTES.
SEP 14 1977
W
pq3ot.I F'.*Frrii$ 4 .1
y: ' � 1 / : t t•- � '°iw«`myeyxeo>y� s+ `^ 1 ;,)�
J
4 �r' '^ '•� 'q3r '7 ' �-4
• f Y' - rP'� ,�' _ F . f hj., ,.w.Wn•. ,ddb ^q •M `A' -
• gF 4 � t .a. �.^ • a ��,xT ''`�' r �F'�? �tS'�' �. .� -1 �, • x -�,,,,yb',-1tl. �
- f' � t'�r ,- .:+"��� Y i'.` r .�z.'i. � ^ - `•,s c� �• , F y° � � S'°t � ,�, ,, d!
f t/ t •. s 1° p '. b ,} 1e,. ,v'�� ,<y � _ iYp � - ♦ •••_.d• 5 '
¢¢ A
AO pA�, ♦ � �..L
r� ru.a �ei��. ,:�^-__ a wia3bs �� "�_"§'�b�i4'�>,9�'�iti�l�rgfe�e.�e•'�i�"aAi`'d►►it:'�3;a:all is
WATER WASTE — Bill Dunn, left, with neigh- flow was finally stemmed, but not before an es-
". ' bars Sam DeSando and John Maher, watch in dismay timated 400,000 gallons of precious water had soaked
as -gallon after gallon flows onto the grass from a ' the surrounding area.
.broken water line in Dunn's backyard. The two-week (Press-Journal—Sam Rohlfing)
r:•. r lv% PEI a c: k. Y r
r' By Sam Rohlfing bubble gallon after gallon out onto the Since then, Dunn's water meter, as
�+ : "It's been two weeks!" Bill Dunn grass, soaking it finally to the point of well as that of his neighbor to the west,
slogged angrily through the saturated complete saturation. John Maher, has become completely
grass in his back yard. Dunn reported that he contacted Mid- submerged.
• Dunn and three adjacent neighbors Florida Utilities, the private service that "I had to put in a new leach field at my
,gathered around what appeared to be a owns the water line, and explained what own expense," Dunn explained,
small, sparkling artesian well along the had occurred. . "because the old one was soaked and
west edge of his property as they ex- Dunn told the Press -Journal a man backed up."
plained to the Press -Journal their recent from the utility company came out, Another neighbor, Sam DeSando,
water problems. observed the leak, stuck a screwdriver shook his head as he watched the water
-' About two weeks ago the water line in into the ground, told Dunn he had a. flow across the yard.
V nan's back yard broke and began to broken pipe and left. "What a great waste," he sighed..
"It's a health hazard," added Dunn.
"And a nuisance," concluded Maher.
• . ,, l Dunn thrust a long screwdriver into
the ground several feet away from the
"well." It came up very wet.
Walking across the grass, shoes sank
Into the soggy soil. It was like walking on
a sponge. l
The Press -Journal talked to the
manager of Mid -Florida Utilities, I. C.
o a i McAllister. He explained that a three-
l quarter -inch reducer connection from a
lVa-inch water line had apparently rotted
I and broken. }
r r When asked why it had taken two
weeks to repair such a seemingly costly
i. break. McAllister said his crew had been
Y e i into "that area" four times in the past
i six weeks. bur. Dunn's particular pipe
e was apparently not one of those visited.
4 McAllister told the Press -Journal he
t
had received a call from DeSando on the
13th of March and said that he sent a
crew out the following day to repair the
Y : spot,
To this, Dunn responded, "Noway.".
On the evening of :%larch 2l, a utility
crew arrived at the Dunn residence and {
repaired the line. it
q� "Water is money to us," McAllister
told the Press -Journal. "We try to get
' these things repaired as soon as 1
possible,"
From figures obtaim-d from a city
• water plant spokesman, the rough
I estimate of water 1„ss from Dunn's
broken line over the 1%o, eek period
conics to a whopping 4u11.t•fu gallons. l
SEP i Ll Will f
Rory FA;� 39
MR. RILEY PRESENTED TO THE BOARD PHOTOGRAPHS OF THE MID
FLORIDA WATER PLANT TAKEN BY .JOSEPH BLAKE. MR. BLAKE CAME FORWARD
AND IDENTIFIED THE FIVE PICTURES WHICH SHOW THE CONDITIONS OF THE
FACILITIES AND THE GROUNDS AROUND THE PLANT WHICH ARE COVERED WITH
A GREAT DEAL OF WATER. HE STATED THAT HE TOOK THESE PHOTOS ON
SEPTEMBER 7TH. THE PICTURES ARE MARKED EXHIBIT H -A, 8-B, 8-C, 83
AND S -E AND ARE ON FILE IN THE OFFICE OF THE CLERK.
MR. RILEY READ LETTERS FROM VELDE FORD AND DEPENDABLE
DODGE OPPOSING THE PROPOSED RATE INCREASE, WHICH LETTERS WERE IN-
'CLUDED WITH THOSE PREVIOUSLY RECEIVED AND MARKED EXHIBIT 4-0 AND 4-P,
THEY ARE ON FILE IN THE OFFICE OF THE CLERK.
CHAIRMAN WODTKE ASKED IF ANYONE IN THE AUDIENCE WISHED TO
BE HEARD.
ATTORNEY COLLINS SWORE IN VANCE 14ALKER OF 836 LOTH COURT,
WHO INFORMED THE BOARD THAT WHEN HE MOVED\INTO THE MID -FLORIDA FRANCHISE
AREA, HIS WATER BILL WENT FROM $9.00 A MONTH TO $35.00 A MONTH, AND THE
WATER WAS SO BAD HE HAD TO START BUYING DRINKING WATER HE DISPLAYED
THE SHOWERHEAD FROM HIS BATHROOM TO SHOW HOW THE WATER AFFECTED IT.
ATTORNEY COLLINS SWORE IN JOSEPH HARRINGTON OF 631 15TH AVENUE
WHO STATED THAT THE WATER IN HIS HOME IS SO BAD THAT WHEN HIS FRIENDS
FROM COCOA COME TO VISIT, THEY BRING THEIR OWN WATER TO DRINK.
ATTORNEY COLLINS ASKED IF ATTORNEY GATLIN FELT IT WAS
NECESSARY TO CONTINUE SWEARING EACH SPEAKER IN.. MR. GATLIN SAID HE
WOULD NOT INSIST ON IT.
ED KINNINGHAM OF TROPIC GROVES STATED THAT HE HAS RESIDED
THERE SINCE .JUNE OF 1975 AND IN ALL THIS TIME HAS BEEN UNABLE TO DRINK
THE WATER OR USE IT FOR COOKING.
.JIM SIMMONS OF 2235 LOTH LANE STATED THAT THE INCREASE
MID-FLORIDA.IS REQUESTING IS APPROXIMATELY 65% OVER THE BASE RATE,
WHICH HE FEELS IS UNJUSTIFIED BASED ON THE QUALITY OF THE WATER AND
THE SERVICE, HE STATED THAT HE WOULD NOT, OPPOSE A SMALL.RATE INCREASE.
MARILYN CHENNAULT OF HERITAGE ESTATES COMMENTED ON THE
CHEMICAL SMELL OF THE WATER AND HOW IT YELLOWS LAUNDRY, NOTING THAT
w
SEP 14 1977 '
Box 31��3rQ
"WHEN MY FRIENDS FROM GIFFORD COME TO VISIT, THEY BRING THEIR OWN
WATER." SHE POINTED OUT THAT WHEN MID -FLORIDA GOT A RATE INCREASE
THREE YEARS AGO, THEY PROMISED MARVELOUS IMPROVEMENTS WHICH HAVE NEVER
COME TO PASS, AND SHE FEELS TO ASK FOR ANOTHER 65% IS BEYOND REASON
HOWARD RAMM OF 12TH ST. AND 21ST COURT, NOTED THAT HE HAS
TO BUY HIS DRINKING WATER AT A COST OF $7.20 PER MONTH AND CART WATER
FROM HIS DAUGHTER'S HOUSE TO COOK WITH, BUT STILL HIS BILL, WHICH
SHOULD BE MINIMUM AVERAGES $7.50 A MONTH. HE ALSO STATED THAT IT
IS VERY DIFFICULT TO EVER FIND THE MAN WHO IS SUPPOSED TO SERVICE
THE SYSTEM.
.JOSEPH LIMOUZO OF 200 14TH PLACE, NOTED THAT TODAY THE WATER
IS CLEAR, BUT HE FEELS THAT IS ONLY BECAUSE OF THIS MEETING. HE ALSO
STATED THAT IF THE GENERAL MANAGER HAD TO TASTE THE WATER, HE WOULD
� . 41977
NOT ASK FOR MORE MONEY,
KENNETH DURAND OF 660 15TH AVENUE STATED THAT HE IS DEEPLY
AGAINST ANY RATE INCREASE SIMPLY BECAUSE HE HAS TO CARRY JUGS TO THE
PARK TO GET DECENT WATER,
ELSIE LINDGREN OF 645 9TH STREET NOTED THAT SHE REQUESTED
A COVER FOR HER WATER METER FOR TWO'YEARS, AND IT LS STILL UNCOVERED.
SHE STATED IF MID -FLORIDA DESIRES AN INCREASE, THEY SHOULD DO SOME-
THING ABOUT THE QUALITY OF THE WATER.
CARL OBENAUS OF 1166 6TH AVENUE, INFORMED THE BOARD THAT
THE BOARD OF DIRECTORS OF TROPIC GROVE CONDOMINIUMS ASKED HIM TO RE-
PRESENT THEM TODAY. HE READ TO THE BOARD THE FOLLOWING STATEMENT
WHICH WAS ACCEPTED AND MARKED EXHIBIT 9.
12
�aCsK cy.4 P�R�41
M W
Ree Mid Florida Utilities request for increase in water rates
Mr. Chairman and Commissionerst
Because I am one of 32 owners in the Tropic Grove Condominium and
have been involved in kate cases for 14 years of my accounting career,
I am especially interested in this rate case.
For seven years I was an accountant for a transportation company
and was involved in rate cases which were under the authority of the
New York State Public Service Commission., Then I was an auditor for
the New York State Public Service Commission in all types of rate cases.
Their system of accounts is identical to that of the Federal Power
Commission system of accounts. Thereforq,I have been involved on both
the side of the Utilities and that of the regulatory commission.
Public Utilities should be entitled to a fair rate of return on
their investments necessary to the operation of the utility, just as
It is necessary to have a regulatory commission supervise them, whether
It be Federal Power Commission, Florida Utilities Commission or the
Board of County Commissioners as it is in this case.
From experience I have learned that Utilities can come up with a
Balance Sheet, Income and Expense statement that would enlist your
sympathy, but I.have found that if these statements were checked
against their books.and how the entries were handled, it might.be
found that Equipment Depreciation., Insurance Expense, Entertainment
Expense, higher salaries than services justify.and many other book
entries this might lead to a rate decrease rather than a rate increase.
monopoly
Since the Mid .Florida Utilities has am!za(rp3:jc with a franchise to
furnish clean, uncontaminated water to us, we feel that they should
clean up the water first so we can drink it, bathe in it and do our
laundry in it without fear of contamination. Promises to clean up the
water,and have it taste better have gone on too"long, so we say" First
clean ftp the water and then consider the rate case later".
Carl F. Obenaus Apt, 3A
1166 Sixth Ave. Vero BEach,Fl. '
i
o
SEP 14 19 77 BOOK 31 PA -L]'. 42
Q
MRS. BIRNIE, OF 845 OLD DIXIE, SPOKE IN OPPOSITION TO THE
REQUESTED RATE INCREASE.
EARL METHIAK, ROUTE 1, ALSO SPOKE IN OPPOSITION TO ANY
RATE INCREASE, NOTING THAT IN ORDER TO KEEP HIS PROPERTY RENTED,
HE HAS TO BUY WATER FOR HIS TENANT TO DRINK.
MRS, MILTON STRICKLAND OF 685 GREENVIEW TERRACE, COMPLAINED
ABOUT THE READING OF THE WATER METERS. SHE INFORMED THE BOARD THAT
THERE ARE ONLY TWO ADULTS LIVING IN HER HOME AND THE WATER IS USED
ONLY FOR LAUNDRY AND BATHING, BUT HER BILLS HAVE INCREASED STEADILY
EVERY MONTH FROM $6.00 IN DECEMBER OF 1976 TO $39.00 IN APRIL, 1977.
MRS. STRICKLAND PRESENTED COPIES OF HER UTILITY BILLS FROM MID -FLORIDA,
WHICH WERE ACCEPTED AND MARKED EXHIBIT 12. THEY ARE HEREBY MADE A
PART OF THE MINUTES AS FOLLOWS;
14
Bou 31 PArF 43
F P.14 19 77.
Hi
MID-FLOR12A-UTILITLtz MID -FLORIDA -UTILITIES i MID -FLORIDA -UTILITIES
950 13tH LANE 95G 13TH LANE 950 13TH LANE
VERO BEACH FLA 3E9bG VERO BEACH FLA 329e0 VERO BEACH FLA 32960
RETURN POSTAGE GUARANTEES RETURN POSTAGE GUARANTEED F..'._a.hpOSTp.SE GUARANTEED
READINGS ��jj READINGS REAOIY35
02/14/77
85
CONSUMPTION G�
&16/
SUMPL ON JGHL 5 CONSUMPTION *391 6
CGNSUMPTION #-GAl y 03!13/77 391 ;
w WATER 700 TER Do
AM1I0UNT DUE b• AMOUNT DUE I 7 -ad IJ y 1
• ; I MOUNT OUR
BILL DATE 01/27/77. BILL DATE 02/22/77 /BIL•L DATE 03/22/77'
LL_YOUR REI_ e'XE'.UMS R YOUP. F=FER£'::E t;U',;EER " - - _- _%E ": '•'SER u
05C_012 2185 04 IOSQ 012 2185 04 1 J
L -050x012 2185 04
RETAIN THIS PORTION RETAIN THIS PORTION
FOR YOUR RECORDSJFOR YOUR RECORDS RETAIN THIS PORTION , e
-- _ _�....w.— �_._._. .,.. FOR YOUR RECORDS
1 MID -FLORIDA UTILITIES J; '
-050 MID -FLORIDA UTILITIES
9SO 13TH LANE HULA- I
VERO BEACH FLA 32960 950 13TH LANE uaFFamETace
VERA BEACH FLA 32960 1 i Rp•: h7 Qtp '
} RETURN POSTAGE GUARANTEED ! ��
tl RETURN POSTAGE GUARANTEED !
! a
I
READINGS
{{,, READINGS MAIL TO:
U4%16J77 398 Ap5% S%77 435 M L STRICKtAND
j CONSUMPTION *-GAL 7 CQNSUMPTION *-GAL 37 ; 685 GLENVI H TERR I e
1 FLR32960CH
p-—'^WATEK'i''-3900
�io1 I 22p
125721856 04 j ..
1
• riin3e RETURN THISr rtRYOURPAYMENiluu
• }
' MOUNT DUE j AMOUNT DUE
Blll DATE 04/27/77 BILL DATE AL/26/77
`I YOUfl REcEF2'.CE NU:'SER 9 cY._•�-
FOR OFFICE USE ONLY .
050 012 •2185 04 80003900 00000000
•, ' 050 D12 2185 04 ;
RETAIN THIS PORTION I RETAIN THIS PORTION Z. 050012218504 052677
O o9/•nR11C 9110 VVIR RFe:e1RDS t• _ _ _• .
1
I �]
IF
tp
C:
C
Hi
MID-FLOR12A-UTILITLtz MID -FLORIDA -UTILITIES i MID -FLORIDA -UTILITIES
950 13tH LANE 95G 13TH LANE 950 13TH LANE
VERO BEACH FLA 3E9bG VERO BEACH FLA 329e0 VERO BEACH FLA 32960
RETURN POSTAGE GUARANTEES RETURN POSTAGE GUARANTEED F..'._a.hpOSTp.SE GUARANTEED
READINGS ��jj READINGS REAOIY35
02/14/77
85
CONSUMPTION G�
&16/
SUMPL ON JGHL 5 CONSUMPTION *391 6
CGNSUMPTION #-GAl y 03!13/77 391 ;
w WATER 700 TER Do
AM1I0UNT DUE b• AMOUNT DUE I 7 -ad IJ y 1
• ; I MOUNT OUR
BILL DATE 01/27/77. BILL DATE 02/22/77 /BIL•L DATE 03/22/77'
LL_YOUR REI_ e'XE'.UMS R YOUP. F=FER£'::E t;U',;EER " - - _- _%E ": '•'SER u
05C_012 2185 04 IOSQ 012 2185 04 1 J
L -050x012 2185 04
RETAIN THIS PORTION RETAIN THIS PORTION
FOR YOUR RECORDSJFOR YOUR RECORDS RETAIN THIS PORTION , e
-- _ _�....w.— �_._._. .,.. FOR YOUR RECORDS
1 MID -FLORIDA UTILITIES J; '
-050 MID -FLORIDA UTILITIES
9SO 13TH LANE HULA- I
VERO BEACH FLA 32960 950 13TH LANE uaFFamETace
VERA BEACH FLA 32960 1 i Rp•: h7 Qtp '
} RETURN POSTAGE GUARANTEED ! ��
tl RETURN POSTAGE GUARANTEED !
! a
I
READINGS
{{,, READINGS MAIL TO:
U4%16J77 398 Ap5% S%77 435 M L STRICKtAND
j CONSUMPTION *-GAL 7 CQNSUMPTION *-GAL 37 ; 685 GLENVI H TERR I e
1 FLR32960CH
p-—'^WATEK'i''-3900
�io1 I 22p
125721856 04 j ..
1
• riin3e RETURN THISr rtRYOURPAYMENiluu
• }
' MOUNT DUE j AMOUNT DUE
Blll DATE 04/27/77 BILL DATE AL/26/77
`I YOUfl REcEF2'.CE NU:'SER 9 cY._•�-
FOR OFFICE USE ONLY .
050 012 •2185 04 80003900 00000000
•, ' 050 D12 2185 04 ;
RETAIN THIS PORTION I RETAIN THIS PORTION Z. 050012218504 052677
O o9/•nR11C 9110 VVIR RFe:e1RDS t• _ _ _• .
1
I �]
MRS. STRICKLAND ALSO DISPLAYED TO THE BOARD TWO WATER GLASSES,
ONE VERY BADLY SPOTTED, AND ONE WHICH SHE HAD TRIED CLEANING WITH BRILLO,
ONLY SLIGHTLY LESS SPOTTED. THESE GLASSES WERE ACCEPTED AND MARKED
EXHIBIT 10 AND EXHIBIT 11. THEY ARE ON FILE IN THE OFFICE OF THE CLERK,
EDWARD SCH MITT OF 1671 3RD COURT SPOKE IN STRONG OPPOSITION
TO THE REQUESTED RATE INCREASE, NOTING THAT IF GRANTED, IT WOULD RESULT
IN AN INCREASE OF 250% SINCE 1972. HE ALSO SPOKE OF THE POOR QUALITY
OF THE WATER, WHICH HAS NOT IMPROVED OVER THE YEARS. MR. SCHMITT
ASKED WHY THIS MEETING WAS HELD IN SEPTEMBER WHEN MANY OF THE PEOPLE
ARE AWAY,
COMMISSIONER SIEBERT EXPLAINED TO HIM THAT THE DATE OF THE
MEETING WAS ASSIGNED BY THE BOARD, AND THIS WAS DONE ALMOST TWO MONTHS
AGO,
ARTHUR MERRILL OF 4TH AVENUE SPOKE IN OPPOSITION AND BROUGHT
A JUG OF YELLOW -COLORED WATER FOR "MR. COFFEY TO MAKE COFFEE WITH."
FRANK CASANO OF COLONIAL TERRACE SPOKE OF HIS PROBLEMS WITH
INSTALLING WATER PURIFIERS, FILTERS, ETC., AND SAID IT IS A CONSTANT
BATTLE TO TRY TO GET GOOD DRINKING WATER. HE FELT IF MID -FLORIDA WERE
ALLOWED A RATE INCREASE, THEY SHOULD REPAY THEIR CUSTOMERS THE EXTRA
IT IS COSTING THEM NOW TO GET DRINKING WATER.
HILDA DURANT OPPOSED ANY INCREASE DUE TO THE CONDITION OF
THE WATER, AND ASKED THAT MID -FLORIDA GIVE MORE NOTICE WHEN THEY SHUT
THE WATER OFF.
CHAIRMAN WODTKE ASKED ATTORNEY GATLIN IF HE WISHED TO
MAKE ANY REBUTTAL.
ATTORNEY GATLIN REQUESTED MR. WRIGHT TO INFORM THOSE PRESENT
WHAT HAS BEEN DONE IN REGARD TO PROMISES MADE AT THE LAST RATE INCREASE
HEARING.
MR, WRIGHT STATED THAT AT THE LAST RATE HEARING THEY AGREED
THERE WAS A PROBLEM WITH THE QUALITY OF THE WATER, AND THEY DESIGNED AND
ORDERED A FILTER AND SOFTENING SYSTEM TO BE INSTALLED. -HE NOTED THAT
THE RATE INCREASE THAT WAS GRANTED WAS NOT ALLOWED TO GO INTO EFFECT
UNTIL THIS WAS DONE, AND THE COST OF THIS IMPROVEMENT WAS $34,000.
16
SEP 141917 rcx 31 PA,;F 45
MRs WRIGHT CONTINUED THAT HE BELIEVED THAT THE PEOPLE TESTIFYING HERE
TODAY IN REGARD TO THE QUALITY OF THE WATER ARE CERTAINLY SPEAKING THE
TRUTH AND HE BELIEVES THE SAMPLES THEY HAVE BROUGHT ARE WHAT THEY SAY
THEY ARE; BUT HE IS SURPRISED BY THE QUALITY OF THE WATER AS HE HAS NOT
BEEN AWARE OF ANY COMPLAINTS MADE BY CUSTOMERS EITHER TO HIM OR TO
MR. OVERSTREET. MR, WRIGHT THEN INFORMED THOSE PRESENT THAT ANYONE
WITH A COMPLAINT COULD CALL.THE OFFICE OF MR. OVERSTREET COLLECT AT
(305) 644-3964 OR HIS OWN OFFICE COLLECT AT (305) 274-5211. HE ASSURED
THE BOARD THAT THESE MATTERS WILL BE ATTENDED TO.
MR. WRIGHT NOTED THAT THE PROBLEM OF THE WATER QUALITY AND
WATER SUPPLY ARE SOMEWHAT RELATED, HE STATED THAT THE WATER SUPPLY AT
THIS LOCATION IS EXTREMELY LIMITED AND THERE IS NO OTHER SOURCE OF WATER
IN THAT AREA. HE CONTINUED THAT IN ORDER TO GET THE SAME QUALITY OF
WATER AS THE CITY OF VERO BEACH PROVIDES WOULD MEAN INSTALLING A
COMPLETE SAND FILTRATION PLANT AND WOULD REQUIRE SEVERAL PERSONNEL
THROUGHOUT THE YEAR TO MAINTAIN AND OPERATE THE PLANT, MR. WRIGHT
INFORMED THE BOARD THAT THEIR ENGINEERS DID LOOK INTO THIS, AND
IT WOULD COST APPROXIMATELY $400,000'TO BUILD SUCH A PLANT AND ABOUT
$68,000 A YEAR TO OPERATE IT, WHICH WOULD BE VERY EXPENSIVE. HE
FURTHER NOTED THAT BECAUSE OF THE LIMITED SUPPLY OF WATER, NO NEW
CUSTOMERS CAN BE ADDED TO HELP DEFRAY THE EXPENDITURE. MR. WRIGHT
ESTIMATED THAT A CAPITAL EXPENDITURE OF THIS AMOUNT TO BUILD,SUCH
A PLANT WOULD RESULT IN A COST TO THE CUSTOMER OF APPROXIMATELY $40.00
PER YEAR WITHOUT TAKING INTO CONSIDERATION THE PERSONNEL TO RUN THE
PLANT. HE INFORMED THE BOARD THAT IN TALKING WITH CITY MANAGER LITTLE
ABOUT THE POSSIBILITY OF OBTAINING WATER FROM THE CITY, IF THEY ARE
LEGALLY ABLE TO DO THIS, THE CITY WOULD REQUIRE A $400,000 CONNECTION
CHARGE.
ATTORNEY GATLIN ASKED MR. WRIGHT IF HE IS SAYING THAT EITHER
OF THESE ALTERNATIVES IS UNECONOMICAL FOR BOTH CUSTOMER AND UTILITY.
17
SEP 14 1977
ROCiK 31 PAG) F 46
MR. WRIGHT NOTED THAT A PRIVATE UTILITY COMPANY DOES NOT
HAVE AVAILABLE TO IT THE LOW COST GRANTS OR FEDERAL MONEY MADE AVAILABLE
TO SOLVE THE GIFFORD WATER PROBLEM. HE STATED THAT THE SOLUTION APPEARS
TO BE TO CONTINUE TO PURSUE AND CONVINCE THE CITY OF VERO-BEACH THAT
THEY COULD CONNECT TO THEIR SYSTEM AT A MUCH LESSER COST, WHICH HE
BELIEVED WOULD SOLVE THE QUALITY PROBLEM, MR. WRIGHT STATED THAT THEY
KNOW THE MID -FLORIDA WATER,.ALTHOUGH IT DOESN'T LOOK VERY GOOD, DOES
PASS THE POTABLE TEST OF THE HEALTH DEPARTMENT, HE STATED THAT THEY
HAVE NOT BEEN CITED OR WARNED BY THE HEALTH DEPARTMENT THAT THE WATER
IS UNFIT TO DRINK.
MR. WRIGHT NOTED THAT IN 1974 MID -FLORIDA WAS GRANTED A RATE
INCREASE, AND IT WAS BASED ON EXPENSES FOR 1972 SO WHEN THEY GOT THE
RATE INCREASE IN 1974, THEY WERE ALREADY THE VICTIM OF TWO YEARS OF
INFLATION. HE CONTINUED THAT AS TO THE QUALITY OF WATER IN ROCKRIDGE,
IN 1974 THEY FELT THAT THIS PROBLEM WAS DUE TO THE OLD GALVANIZED 2"
MAINS WHICH CONTRIBUTE TO THE "RED WATER LOOK." HE STATED THAT THEY
HAVE TRIED TO CLEAR UP THAT PROBLEM BY CONSTANT FLUSHING. THE
ENGINEERING STAFF FEELS THE ONLY SOLUTION IS THE TOTAL REPLACEMENT
OF THE GALVANIZED MAIN, AND IN 1974 THEY ESTIMATED THIS WOULD COST
$85,000, OR NOW WOULD PROBABLY AMOUNT TO $190,999. THIS IS AN -IN-
-VESTMENT ON WHICH THE COMPANY WOULD BE ENTITLED TO A RATE OF RETURN.
MR. WRIGHT CONCLUDED BY SAYING THAT IT IS TOO BAD MID -FLORIDA WASN'T
HERE ON THE GROUND FLOOR TO BUILD THE SYSTEM, BUT THEY ARE PROVIDING
THE KIND OF SERVICE THAT IS BEING PAID FOR.
CHAIRMAN WODTKE ASKED FOR THE COMMISSIONERS' COMMENTS.
COMMISSIONER SIEBERT SAID IN VIEW OF ALL THE INFORMATION THAT
HAS BEEN PRESENTED THIS DAY, HE FELT IT WILL BE DIFFICULT TO DIGEST ALL
THIS AND MAKE ANY DECISION THIS AFTERNOON, BUT HE DOES HAVE A FEW
PRELIMINARY QUESTIONS. HE ASKED IF AN ENGINEERING STUDY WAS DONE IN
REGARD TO UPGRADING THE SYSTEM AND -WHETHER THEY HAVE ACTUALLY INVESTIGATED
WHAT THE PROBLEMS REALLY ARE.
Rook 31 Pw 47
18
W
Rook 31 Pw 47
MR. WRIGHT STATED THERE WAS A STUDY AND THE ENGINEERS RECOMMEND
THAT THE ONLY SOLUTION WOULD BE TO COMPLETELY REPLACE ALL THE MAINS IN
THE ROCKRIDGE AREA.
COMMISSIONER SIEBERT ASKED IF ANY OF THE MAINS WERE DUG UP
AND INSPECTED, AND MR. WRIGHT COULD NOT SAY FOR SURE, BUT FELT THE
ENGINEERS WERE QUITE.CERTAIN OF THE CONDITION OF THE PIPES.
COMMISSIONER SIEBERT ASKED WHEN THEY PURCHASED THE SYSTEM,
WERE THEY AWARE OF THE CONDITION OF THE PIPES AND WAS THERE ANY PROVISION
EVER MADE FOR UPGRADING,
MR. WRIGHT STATED THAT THE ONLY PLANS THAT HAVE ACTUALLY
BEEN PUT INTO USE IS THE CONSTRUCTION OF THE PLANT OFFICE AND VALVES
ON ALL OF THE DEAD -ENDS SO THAT THEY COULD FLUSH EVERY MAIN IN THAT
SYSTEM. HE STATED THAT THIS IS WHAT THEY FELT WAS THE MOST PRUDENT
THING TO DO IN 1974, AND IT WAS DONE AND THEY MAINTAIN A SCHEDULE OF
FLUSHING, HE COMMENTED THAT SINCE ATTENDING THIS MEETING HE HAS
LEARNED THAT THE WATER IS CLOUDY AND DOES SHOW RED AT TIMES. THE
FLUSHING WAS DESIGNED TO PREVENT THIS, AND THE PEOPLE TODAY HAVE SAID
THAT SINCE WE ARE HERE LOOKING FOR AN INCREASE, THE WATER HAS MAGICALLY
CLEARED UP. HE FELT THIS INDICATES THAT THE FLUSHING WILL DO THE JOB.
COMMISSIONER SIEBERT ASKED WHENEVER A UTILITY COMPANY EITHER
'CONSTRUCTS A NEW UTILITY OR PURCHASES AN OLD ONE, ARE NOT CERTAIN
CAPITAL EXPENSES ANTICIPATED?
MR. WRIGHT AGREED THAT THEY WOULD ANTICIPATE HAVING PROBLEMS.
HE NOTED THAT THEY DUG TWO NEW WELLS, BUT ADMITTED THAT THIS DOES NOT
RELATE TO THE QUALITY OF THE WATER,
COMMISSIONER SIEBERT ASKED MR. WRIGHT TO GIVE HIM A SCHEDULE
OF HOW OFTEN THE SYSTEM IS FLUSHED,
IRA MCALLISTER, WHO WORKS FOR GENERAL WATERWORKS MANAGING
THE MID -FLORIDA SYSTEM, CAME FORWARD AND STATED THAT HE FLUSHED THE
LINES ON THE 24TH AND 25TH OF AUGUST, AND HIS SCHEDULE DOES NOT CALL
FOR IT TO BE DONE AGAIN FOR ANOTHER THREE WEEKS, HE NOTED, HOWEVER,
THAT THIS DOES NOT INCLUDE FLUSHING ALL THE DEAD -ENDS IN THE SYSTEM,
JUST THE MOST IMPORTANT AREAS.
COMMISSIONER SIEBERT ASKED HOW OFTEN THE WHOLE SYSTEM GETS
FLUSHED.
19
SEP 141977 1
ma 31 FAJF 48
MR. MCALLISTER SAID THAT THEY RUN THE WATER THROUGH THE
FIRE HYDRANTS AT A FAST RATE OF SPEED TO FLUSH OUT THE LINES AND
SOME OF THE DEAD ENDS,
CHAIRMAN WODTKE INQUIRED IF THERE IS ANY CONNECTION BETWEEN
FLUSHING AND THE `UNACCOUNTED FOR" WATER MENTIONED PREVIOUSLY. HE
NOTED THAT THERE WAS MUCH LESS UNACCOUNTED FOR WATER IN THE LAST YEAR,
MR, WRIGHT STATED THAT IN DETERMINING THE UNACCOUNTED FOR
WATER, THEY ARE REALLY L60KING FOR WATER LOST DUE TO MAIN BREAKS OR
WATER TAKEN WITHOUT AUTHORITY. THIS AMOUNT, IS CALCULATED FROM A SET
FORMULA WHICH TAKES INTO ACCOUNT FIRE LOSSES AND COMPANY USE OF WATER,
CHAIRMAN WODTKE ASKED IF THIS WOULD BE SHOWN IN THE WATER
PRODUCED FIGURE, AND MR. WRIGHT STATED THAT IT WOULD BE,
COMMISSIONER LOY.STATED THAT SHE WISHES TO KNOW WHAT HAS
BEEN DONE IN THE LAST 3 OR 4 WEEKS TO CLEAN UP THE WATER IN THE AREA
OF COLONIAL ESTATES AND HERITAGE ESTATES AND ASKED IF SHE IS CORRECT
IN UNDERSTANDING THAT THEY HAVE A CONSTANT FLUSHING SCHEDULE WHICH
OCCURS BETWEEN THE 21ST AND 25TH OF EACH MONTH, BUT THAT IT DOES NOT
CONTAIN THE ENTIRE SYSTEM. MR. MCALLISTER STATED THAT IS CORRECT,
COMMISSIONER LOY THEN NOTED THAT MR, WRIGHT APPARENTLY DOES
NOT KEEP IN CONTACT WITH MR. OVERSTREET IN REGARD TO COMPLAINTS THAT HAVE
BEEN REGISTERED BECAUSE THE COMPLAINTS HAVE CERTAINLY BEEN MADE KNOWN
TO THIS BOARD AND THERE ARE DOCUMENTED ANSWERS MADE BY MR, OVERSTREET
TO THE COMPLAINTS.
MR, WRIGHT SAID HE KNOWS THERE ARE MANY HIGH BILL COMPLAINTS,
BUT WAS NOT AWARE OF -ANY IN REGARD TO THE QUALITY OF THE WATER.
COMMISSIONER LOY NOTED THAT IN 1974 ONE OF.THE BIGGEST
COMPLAINTS REGISTERED BY THE USERS WAS THE QUALITY OF THE WATER, AND
AT THAT TIME MID -FLORIDA LED THE BOARD TO BELIEVE CERTAIN IMPROVEMENTS
SHOULD BE MADE AND COULD BE MADE, SHE INQUIRED ABOUT THEIR POLICY IN
REGARD TO PLANNED WATER CUT-OFFS,
MR, WRIGHT STATED THAT IT IS THEIR POLICY TO DO.THIS AT AT
TIME -LEAST INCONVENIENT TO THE CUSTOMERS AND ONLY IN EMERGENCY SITUATIONS
DO THEY CUT-OFF WATER WITHOUT NOTICE.
20
JOK 31 PAGE 49
COMMISSIONER LOY THEN DISCUSSED ESTIMATING BILLINGS AND
BROUGHT UP MRS. STRICKLANDIS 'BILL WHICH HAD INCREASED AN UNACCOUNTABLE
AMOUNT FROM ONE MONTH TO THE NEXT.
MR. WRIGHT DISCUSSED MRS, STRICKLAND'S POOL WITH HER AND
CONCLUDED THAT THIS MATTER BEARS SOME INVESTIGATION. HE FELT THE
METER MIGHT HAVE BEEN INCORRECTLY READ OR INCORRECTLY CALCULATED,
COMMISSIONER LOY ASKED IF THE FIGURES PRESENTED APPLY ONLY
TO THE INDIAN RIVER COUNTY MID -FLORIDA SUBSIDIARY OF GENERAL WATERWORKS.
ATTORNEY GATLIN STATED THAT THESE ARE THE INDIAN RIVER COUNTY
FIGURES WITH SOME ALLOCATIONS FROM OTHER OFFICES,
CHAIRMAN WODTKE QUESTIONED MR, WRIGHT ABOUT THE WATER TESTS
REQUIRED BY THE STATE OF FLORIDA,
MR, WRIGHT REPLIED THAT THE REQUIREMENTS ARE THAT PERIODIC
OR MONTHLY SAMPLES BE FURNISHED TO THE HEALTH DEPARTMENT.
MR. MCALLISTER STATED THAT THERE ARE S SAMPLES TAKEN MONTHLY
TWO FROM THE RAW WATER AND SIX FROM POINTS SCATTERED ABOUT THE SYSTEM AT
DIFFERENT PLACES EACH MONTH, HE NOTED THAT THIS IS ONLY A BACTERID-
LOGICAL TEST, BUT STATED THAT HE DOES A TEST ON IRON, CHLORINE, ETC.,
AT THE PLANT EACH DAY. MR. MCALLISTER CONTINUED THAT THE TEST SHOWS
ONLY A TRACE OF IRON AND THAT HE SENDS HIS REPORTS TO THE WEST PALM
BEACH HEALTH DEPARTMENT.
CHAIRMAN WODTKE NOTED THAT THE FIGURES SHOW AN UPGRADING
OF THE SYSTEM IN 1974, BUT NO IMPROVEMENTS ARE SHOWN FOR 1975 OR 1976
EVEN AFTER ALL THE COMPLAINTS MADE IN 1974,
MR. WRIGHT SAID THAT WAS TRUE AND NONE WERE MADE BECAUSE THEY
THOUGHT THE SYSTEM WAS WORKING.
CHAIRMAN WODTKE THEN DISCUSSED FLUSHING OF THE SYSTEM ASKING
IF THE ENTIRE SYSTEM HAS EVER BEEN FLUSHED SINCE IT WAS PURCHASED.
MR. WRIGHT STATED THAT IT HAS BEEN FLUSHED MANY TIMES. THE
CONCENTRATION OF THE FLUSHING IS MAINLY IN THE ROCKRIDGE AREA.
COMMISSIONER DEESON ASKED IF IT IS SAFE TO ASSUME THAT IF
THE ENTIRE SYSTEM WAS FLUSHED ON A REGULAR BASIS, THE QUALITY OF THE
WATER MIGHT IMPROVE,
21
Ep 141977 uG��. :�:1 �,, 50
MR. WRIGHT FELT THAT COULD BE ASSUMED.
COMMISSIONER DEESON ASKED HOW REGULARLY IS THE ENTIRE
SYSTEM FLUSHED, BUT MRs WRIGHT COULD NOT GIVE HIM A SPECIFIC ANSWER,
COMMISSIONER SCHMUCKER NOTED THAT MID—FLORIDA CAN SEE HOW
UNHAPPY THE PEOPLE ARE WITH THE WATER THAT IS BEING SUPPLIED TO THEM.
HE ALSO NOTED THAT THE BOARD GAVE THEM AN INCREASE IN 1974 AND ONLY
ONE IMPROVEMENT HAS BEEN MADE FOR $34,000. HE FELT THAT MID—FLORIDA
HAS MADE VERY LITTLE EFFORT TO RECTIFY THE SITUATION.
MR. WRIGHT STATED THAT THERE HAS BEEN AN EFFORT WITHIN THE
ECONOMIC MEANS AVAILABLE TO THEM. HE STATED THAT TO MAKE THE WATER
SIMILAR TO THE CITY OF VERO BEACH WOULD REQUIRE AN EXPENDITURE OF
APPROXIMATELY $400,000, AND SUCH AN IMPROVEMENT IS NOT INCLUDED IN
ANY WAY IN THE PRESENT RATE CASE. HE DID NOT FEEL A $400,000 PLANT
WOULD BE BENEFICIAL TO THE CUSTOMERS EITHER BECAUSE MID—FLORIDA
WOULD BE TREATING A LIMITED SOURCE OF WATER AND THERE WOULD BE N0'
ADDITIONAL CUSTOMERS TO HELP PAY FOR THIS WHICH WOULD BE A TERRIBLE
BURDEN TO THE CUSTOMERS.
COMMISSIONER SCHMUCKER NOTED THAT MR. WRIGHT PREVIOUSLY
ESTIMATED THAT A $400,000 INVESTMENT WOULD COST EACH CUSTOMER ABOUT
$3.50 A MONTH. HE POINTED OUT THAT THESE PEOPLE ARE BUYING DRINKING
WATER AND CARRYING WATER TO THEIR HOMES, AND HE DOES NOT FEEL THAT
$3.50 A MONTH WOULD BE A MAJOR PROBELM WITH THEM IF THEY WERE GETTING
DECENT WATER. HE FURTHER NOTED THAT THE ONLY IMPROVEMENTS THAT HAVE
BEEN MADE WERE MADE BECAUSE MID—FLORIDA COULDNIT GET THE RATE INCREASE
WITHOUT THEM.
MR, WRIGHT SAID THE BOARD DID NOT DEMAND THE IMPROVEMENTS;
THEY ASKED WHAT. MID—FLORIDA WAS GOING TO DO, AND THEY GAVE THEM AN
OUTLINE WHICH THE BOARD FELT WAS FINE AND AGREED THAT THE RATES WOULD
BE EFFECTIVE AS SOON AS THIS WAS ACCOMPLISHED.
COMMISSIONER SCHMUCKER POINTED OUT THAT MID—FLORIDA I.S ASKING
FOR AN INCREASE, BUT IS NOT SAYING WHAT THEY CAN DO TO MAKE THE WATER
SUITABLE.
22
SEP 14 1977
moK 31 PArF 51
MR. WRIGHT REITERATED ALL HIS PREVIOUS STATEMENTS ABOUT THE
COST OF THE PLANT AND CONNECTION CHARGES WITH THE TTY. HE STATED
THAT THEY ARE SUBJECTED TO THE SAME INFLATIONARY PROBLEMS EVERYONE
ELSE IS. HE STATED THAT ALL IT WOULD TAKE TO MAKE THE DIFFERENCE
BETWEEN PROFIT AND LOSS AT THIS TIME WOULD BE A BREAK IN A MAIN.
COMMISSIONER SCHMUCKER FOUND IT HARD TO BELIEVE THAT THEY
ARE OPERATING AT A LOSS WITH THE RATES THEY ARE CHARGING TO 1,000
CUSTOMERS AND MR, WRIGHT STATED THAT THE FIGURES PRESENTED PROVE IT.
CHAIRMAN WODTKE ASKED IF A SYSTEM WAS INSTALLED FOR
CORROSION CONTROL,
MR, WRIGHT STATED THAT IT WAS, AND THEIR ENGINEERS SAY THAT
IT IS WORKING.
ADMINISTRATOR .KENNINGS ASKED.MR. MCRLLISTER WHAT, IN HIS
OPINION, WOULD TAKE PLACE IN THIS SYSTEM IF ALL OF THE LINES INCLUDING
THE DEAD-END LINES WERE PERIODICALLY FLUSHED.
MR. MCALLISTER STATED THAT THE WATER LEAVES THE WATER PLANT
WITH JUST A TRACE OF IRON IN IT, AND HE BELIEVES THE WATER PICKS UP THE
IRON FROM THE GALVANLZED LINES WHICH ARE IN TERRIBLE CONDITION. HE
FELT THE FLUSHING IS A WASTE OF A LOT OF WATER.
CHAIRMAN WODTKE NEXT QUESTIONED MR. MULLE ABOUT HOW HE
FIGURED THE RATE OF RETURN AND ASKED IF HE TOOK INTO CONSIDERATION
THE QUALITY OF THE WATER OR THE SERVICE.
MR. MULLE STATED THAT HE DID NOT: THAT IS CONSIDERED 'ABOVE
THE LINE" AND HIS COST OF CAPITAL AND RATE OF RETURN INVOLVES SOLELY
THE RETURN OF CAPITAL TO THE SYSTEM AT THE GENERAL WATERWORKS LEVEL.
COMMISSIONER SIEBERT ASKED IF THE EFFICIENCY OF MANAGEMENT IS
TAKEN INTO CONSIDERATION,
MR`, MULLE STATED THAT IT IS, BUT ONLY AS COMPARED TO COMPANIES
THAT HAVE A SIMILAR RATING AS GENERAL WATERWORKS, WHICH IS "A" RATED.
COST OF CAPITAL IS BASED ON COMPARABLES AND DOES INCORPORATE QUALITY
MANAGEMENT.
SEP J 4 1977
23
ma 31 PAGE 52
SEP 14 177
L_
COMMISSIONER SIEBERT ASKED IF EFFICIENCY OF MANAGEMENT OR
METHOD OF RECORD KEEPING COULD RESULT IN A HIGHER RATE OF RETURN ON
AN INVESTMENT.
MR. MULLE FELT THAT IT COULD NOT ON INVESTMENT, BUT IT COULD
ON `ABOVE THE LINE" ITEMS. HE NOTED THAT THE COMPANY THAT IS SPENDING
MORE ON OPERATIONS WILL NOT ACHIEVE'THE SAME RATE OF RETURN,
MR. MULLE EXPLAINED TO THE BOARD THAT HE TOOK THE RATE OF
RETURN FOR THE WHOLE HOLDING SYSTEM AND SUPPLIED IT TO MR. COFFEY,
WHO WORKED OUT HIS FIGURES BASED ON THIS.
ATTORNEY COLLINS ASKED WHY IT IS MATERIAL TO THIS COMMISSION
TO KNOW THE RATE OF RETURN FOR THE GENERAL WATERWORKS COMPANY AS A
WHOLE, AS HE FELT IT WOULD BE MORE MATERIAL FOR THEM TO KNOW WHAT WATER
COMPANIES OTHER THAN GENERAL WATERWORKS HAVE FOR A RATE OF RETURN.
MR, MULLE POINTED OUT THAT GENERAL WATERWORKS IS THE SYSTEM
THAT ATTRACTS THE CAPITAL, BUT HE STATED THERE ARE OTHER WATER COMPANIES
IN THE STUDY.
ATTORNEY COLLINS ASKED IF MR. MULLE RELIED ON THE FIGURES
PRESENTED TO HIM BY MR, COFFEY.
MR, MULLE STATED HE DID NOT, THAT HE GETS HIS FIGURES FROM
GENERAL WATERWORKS IN PHILADELPHIA, WHO HAS A REPORT AUDITED BY PEAT,
MARWICK & MITCHELL,
ATTORNEY COLLINS NOTED THAT WE HAVE HEARD TESTIMONY THAT
SOME OF THE MID -FLORIDA DISTRIBUTION LINES ARE PRETTY WELL WORTHLESS,
BUT THEY ARE ON THE BOOKS AT A PRETTY HIGH VALUE.
MR. MULLE STATED THAT THEY ARE ON THE BOOKS,AT THE DEPRECIATED
COST. HE EXPLAINED THAT HIS DECISION IS BASED ON THE CAPITAL DOLLARS
ATTRACTED, NOT THE DOLLARS INVESTED, BUT THE DOLLARS OBTAINED FROM THE
MONEY MARKET, HE STATED THAT*A UTILITY SYSTEM MUST BE ABLE TO ATTRACT
CAPITAL AND MAINTAIN ITS LEVEL OF CREDIT AND THAT DOESN'T HAVE ANYTHING
TO DO WITH THE ASSETS EMPLOYED DOWN HERE. HE STATED THAT ACTUALLY
MID -FLORIDA BENEFITS FROM THE ATTRACTED CAPITAL.
i 24
plo0x 3.1 PArF 53
S.
CHAIRMAN WODTKE NOTED THAT THEY DID NOT SEEM TO HAVE BEEN
ABLE TO ATTRACT THE CAPITAL FOR OUR LOCAL SYSTEM,
MR. MULLE NOTED THAT THE INVESTOR PUTS THE CAPITAL WHERE
THE GREATER RETURN IS AVAILABLE,
THE CHAIRMAN POINTED OUT THAT WHEN THEY TALK ABOUT THE
$400,000 EXPENDITURE, THEY DON'T SPREAD THAT OVER THE WHOLE COMPANY,
BUT PUT THE COST ONLY ON THIS LITTLE SYSTEM.
CHAIRMAN WODTKE ASKED MR. COFFEY TO EXPLAIN THE DIFFERENCE
IN THE RETAINED EARNINGS FIGURE SHOWN ON EXHIBIT B AND EXHIBIT H,-
$101,000 AS COMPARED TO $3$,000.
MR. COFFEY AGREED THERE IS A DISCREPANCY IN THESE FIGURES
AND STATED HE WILL HAVE TO CHECK HIS RECORDS.
CHAIRMAN WODTKE ASKED IF $25,000 IS HIS ESTIMATE OF WHAT
THIS RATE CASE WILL COST,
MR. COFFEY STATED THAT IT IS AN ESTIMATE OF THE RATE CASE
COST AND WILL BE ADJUSTED TO THE ACTUAL FIGURE WHEN ALL THE BILLS COME
IN.
COMMISSIONER SIEBERT ASKED MR. COFFEY TO EXPLAIN BRIEFLY
SOME OF THE EXPENSES INCLUDED UNDER THE OPERATING EXPENSES FOR TRANS-
MITTING AND DISTRIBUTION.
MR. COFFEY STATED THAT THESE ARE GENERAL CLASSIFICATIONS
AND COULD INCLUDE THE COST OF CHEMICALS OR ANY INGREDIENTS THAT HAVE TO
BE ADDED TO THE WATER, MAINTENANCE DONE ON THE DISTRIBUTION LINES, AND
ANY LABOR INVOLVED, ETC.
COMMISSIONER SIEBERT STATED THAT HE BELIEVED THE TESTIMONY
INDICATED NO MAINTENANCE ON THE DISTRIBUTION LINES.
MR. WRIGHT STATED THAT IF HE HAD GIVEN THE IMPRESSION THERE
WAS NO MAINTENANCE GOING ON, HE HAD NOT MEANT TO.
DISCUSSION CONTINUED IN REGARD TO CUSTOMER ACCOUNTING AND
COLLECTIONS AND MR. COFFEY STATED THAT THE COLLECTION OF ACCOUNTS IS
HANDLED IN WINTER PARK BY MR. OVERSTREET.
SEp 14 1977.
"Or# 31 PAu 54
I
25
SEp 14 1977.
"Or# 31 PAu 54
I
COMMISSIONER SIEBERT ASKED IF THESE COSTS ARE PRO -RATED
BACK TO MID -FLORIDA, AND MR. COFFEY STATED THERE IS NO CO -MINGLING. OF
EXPENSES WHICH ARE DIRECT COSTS.
COMMISSIONER SIEBERT NOTED THAT ADMINISTRATIVE COSTS AMOUNT TO
MORE THAN 25% AND HE ASSUMED MR. MCALLISTER`S SALARY IS INCLUDED IN THIS.
MR. COFFEY STATED THAT MR, MCALLISTER'S SALARY COULD GO UNDER
DIFFERENT HEADING, ACCORDING TO WHAT HE IS INVOLVED WITH,
COMMISSIONER SIEBERT NOTED THAT MOST OF THIS MONEY GOES BACK
TO THE PARENT COMPANY IN WINTER PARK, AND ASKED IF ANY OF IT GOES BACK
TO GENERAL WATERWORKS, MR, COFFEY STATED THAT IT DID NOT.
COMMISSIONER SIEBERT DISCUSSED HOW DEPRECIATION IS APPLIED,
NOTING THAT A PORTION OF DEPRECIATION IS FOR THE DISTRIBUTION SYSTEM,
WHICH IS AN ASSET. HE ASKED HOW DEPRECIATION ALLOWANCE WOULD AFFECT
COST TO THE CUSTOMERS.
MR, COFFEY STATED THAT THE COMPANY DOES NOT EARN ON ACCUMULATED
DEPRECIATION.
COMMISSIONER SIEBERT POINTED OUT THAT THE INTEREST EXPENSE
SHOWN IN EXHIBIT C IS A LARGE ITEM, AND MR, COFFEY STATED THAT MID -
FLORIDA HAS BEEN RUNNING AT AN OPERATING LOSS AND IT HAS BEEN NECESSARY
TO BORROW MONEY.
COMMISSIONER SIEBERT ASKED IF THEY CAN BORROW FROM GENERAL
WATERWORKS, AND MR. COFFEY STATED THEY CAN AND THE INTEREST CHARGE IS
ABOUT 8%.
COMMISSIONER LOY ASKED WHAT PERCENTAGE OF THE PARENT COMPANY
IS CHARGED AGAINST MID -FLORIDA.
MR, COFFEY STATED THAT THE S% OF THE SALARY OF MR. OVERSTREET
AND TWO OF HIS SUBORDINATES AT WINTER PARK IS CHARGED BACK TO MID -
FLORIDA.
COMMISSIONER LOY ASKED IF THIS HOLDS TRUE WITH OTHER ITEMS,
AND MR. COFFEY SAID THAT IT DOES NOT APPLY TO DIRECT EXPENSES.
CHAIRMAN WODTKE REQUESTED THAT MR. COFFEY SUPPLY THE BOARD
WITH A BREAKDOWN OF EXPENSES FOR 1Q76-1977 FOR MID -FLORIDA, AND MR.
COFFEY AGREED HE COULD DO THIS AND WOULD ALSO ANALYZE THE INTEREST
EXPENSE,
0
SFP 14 1977 P(v 31 PAGF 55
M.
F
COMMISSIONER DEESON ASKED IF MID -FLORIDA REQUIRES UTILITY
DEPOSITS, AND MR. OVERSTREET SAID THEY DO NOT.
ADMINISTRATOR JENNINGS ASKED MR, MCALLISTER IF IT WERE
POSSIBLE TO INTRODUCE CITY OF VERO BEACH WATER INTO THESE LINES,DID
HE FEEL THERE WOULD BE NO IMPROVEMENT IN THE WATER QUALITY UNTIL.THE
DISTRIBUTION LINES WERE REPLACED.
MR. MCALLISTER DID NOT FEEL HE COULD SAY FOR SURE.
CHAIRMAN WODTKE SUGGESTED THAT THE HEARING BE RECESSED AND
CONTINUED AT A DATE AGREEABLE WITH THE BOARD AND MID -FLORIDA UTILITIES,
MR, SCHMITT, A CUSTOMER OF MID -FLORIDA, REQUESTED THAT THE
MEETING BE ADJOURNED FOR TWO MONTHS SO MORE PEOPLE COULD ATTEND, BUT
THE BOARD FELT A VERY GOOD PERCENTAGE HAD ALREADY TURNED OUT AND
ADEQUATELY EXPRESSED THEIR -FEELINGS.
AFTER FURTHER DISCUSSION, IT WAS AGREED THAT THE HEARING
WOULD BE RECESSED UNTIL TUESDAY, SEPTEMBER 27TH, AT 3:00 O'CLOCK P.M.
COMMISSIONER DEESON REQUESTED THAT HE BE SUPPLIED THE COST
OF THE FACILITY WHEN PURCHASED AND THE METHOD USED TO ESTABLISH VALUE
OF THE PLANT AND THE DISTRIBUTION SYSTEM,
THE CHAIRMAN THEREUPON RECESSED THE MEETING AT 6:45 O'CLOCK
P. M., UNTIL TUESDAY, SEPTEMBER 27, 1977, AT 3:00 O'CLOCK P. M.
ATTEST:
CLERK CHAIRMAN
SEP 1.4 1977
II
27
II