If residents in the unincorporated area of the south barrier island were to opt for county water and sewer rates, the city would make an additional 4.3 percent, or approximately $126,000 more, on its 3,000 customers in the area, according to City Manager Jim O’Connor.  Current revenue from island customers south of the city limits is nearly $3 million.

Friday O’Connor wrote a memo to the City Council confirming that the city has offered to give customers on the south island the same deal extended recently to the Town of Indian River Shores.  O’Connor’s memo to the Council was based on a report by GAI Consulting, Inc.

O’Connor said the city is also open to considering other approaches to serving the area, such as a wholesale rate agreement with the county.  If the city’s provides water and sewer services to the area at bulk rates, the county could handle metering and billing.

Generally, the city’s rate structure assesses higher chargers for low volume users, while the county’s rates are more expensive for large-volume customers.

The county recently mailed a survey to the city’s customers on South Beach asking whether they would prefer to be served by the city or the county, after the current 30-year franchise agreement expires in March 2017.

In order for the county to serve the south barrier island, it would first have to spend $5 million or more to buy the utility infrastructure the city installed and/or maintained over the past 30 years.

The county would also have to spend another $5 million or more boring under the Indian River Lagoon to connect its mainland system to the 3000 customers on the south barrier island.