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<br /> RLGULAR 14EETIPJG OF THE ORONO COUNCIL, JUNE 13, 1977 Page 51
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<br /> � ORONO SCHOOL DISTRICT
<br /> (Continued)
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<br /> � Monies received by Orono S'or the sale of 9,575,� 70 gallons of
<br /> • wa�er arr,ount to �1 1 ,202. 95. ?�oni e s paid to the Ci ty of Long
<br /> I�.ke, .for 10,3���-,700 gallons of water, amount to $9,301 .22,
<br /> � w'nich leaves a gross proi'it of' �2,585•29. From this gross pro-
<br /> fit, there are fi�ed costs of app�oximately �625.00, There is
<br /> � also 769,530 gallons of water that was used �'rom the hydran�s
<br /> that was not metered or sold. Any water passing throu�h tne
<br /> � rne�er from Long Lake to Orono costs the City of Orono 90� per/
<br /> � �housand gallons, whicii multiplied by 769,530 gallons, cos�s
<br /> �692.58.
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<br /> By tak�ng �he gross profi t of �2, 585. 29, and subtrac�ing the
<br /> • fixed cos�s for maintenance, of �6?_5,00, and the cost of water -
<br /> purchased, but not sold, of �692.58, it leaves the City of �
<br /> � Orono the figure of �1 , 267.72 as a ne t pr•ofi t for the period i.hat
<br /> � was used for this review.
<br /> � Z'he Ci ty of Or•ono has been eh treme?y for�u�ate in regards �o
<br /> main breaks, replacement of nydrants, etc. This, of course, is
<br /> � due to �he main�enance procedure we �ave in flusi�ing of lines
<br /> and general main�enance of h�drants, shut-oif valves, e�c. But
<br /> � if �he need should corne for a replacement of a h�drant, �he cost
<br /> • of �he �ydrant would be �57ti, 00, plus installat�on. A main
<br /> break could cost up to �'l ,000. 00. Hopefully, this will not
<br /> � nappen, but if it did, an� profit would then be h-iped out.
<br /> • The City of Or•ono al so mainta�ns the water me ters; if' the me�er
<br /> does not opera �e, Orono 1'i�es or replaces it at no cost to the
<br /> � customer. If �he me�er f'reezes and breaks, or is tampered with,
<br /> s we will then chaz-•ge f Qr �rA ���3ir.
<br /> � Mr. Pat Farnand, ?�avor of Long Lake, was going to get a le�ter
<br /> of in�ention to me as to what Long Lake would do in regard to
<br /> � a reduc�ion in ra�es. As of �nis wri�ing, I h4ve received
<br /> no�hing 1'rom him.
<br /> •
<br /> • Ily recommenda�ion is �o deny any reduction in our charge of
<br /> 27¢ per/thousand gallons; but to pass on �o the Orono cus�omer,
<br /> � or cus�omers, designated by Long Lake, any reduction in rates
<br /> given to the City of Orono. I would also recorr�uend �hese rates
<br /> � be reviewed again in Ja�uary, 1978. We �hen will have �he full
<br /> ye�rs � history of 1977 to use, along with the last three quar�ers
<br /> • of � 976.
<br /> ` Sewer Ra�es: Our budget and the ?•,e�ropolitan Was�e Con�rol
<br /> � Corunission charges and depreciaiion and monies to be repaid �o
<br /> the PIR f��nd, for a total of �1 L7, 8IT8. 00, is to be recovered by
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<br /> � (Continued)
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