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HomeMy WebLinkAboutResponse to Proposed Rate IncreaseCite of Sebastian POST OFFICE BOX 127 O SEBASTIAN, FLORIDA 32958 PAT FLOOD, JR. TELEPHONE (305) 589-5330 E;zOnthReW Mayor City Clerk April 28, 1982 Mr. C. E. Fancher, Jr. Assistant Vice -President, Finance General Development Utilities, Inc. 1111 South Bayshore Drive Miami, Florida 33131 RE: GDU, Inc., Proposed Rate Increase - Sewer Dear Mr. Fancher: As you recall, the Council of the City of Sebastian, after months of analysis and review of your company's rate increase proposal, indicated at its workshop meet- ing of April 27, 1982, that they were prepared to consider an ordinance to grant an increase in sewer rates at a meeting to be held at City Hall on May 5, 1982, at 7:00 p.m. The Council has indicated that a just, reasonable, com- pensatory and not unfairly discriminatory rate for sewer service to be $10.00 per month per residential connection. It is further the intent of the Council that all rate increase requests for sewer shall be based on the total permitted number of 1,200 connections in order to fully utilize the present 300,000 GPD plant @ 250 GPD per connection. The total operating and maintenance expense for the previous year to be divided by the total possible connections (1,200). The result shall be the annual flat rate charge per connec- tion. The total operating and maintenance expense tabulation shall specifically contain the following line items: Mr. C. E. Fancher General Development Utilities Page 2 Operating Expense Fuel/Power Purchased Treatment Costs Transmission & Distribution Pump/Lift Station Customer Accounting Uncollectable Accounts Admin. & General Expenses Outside Services Source of Supply -Labor Maintenance Expenses Pump/Lift Station Treatment Plant Mains Services Video Service Crew -Labor Taxes Other Than Income Tax Payroll Real & Personal Property Depreciation Expense Depreciation Expenses It would be appreciated if you would submit any addi- tional reports or comments at your earliest convenience. Very truly yours, Pat Flood, Jr. Mayor PF/dh cc: Daniel M. Kilbride, Jr. Earl Masteller 'y .