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<br />(3) The rate for water usage after October 1, 1991, <br />shall be as determined by the cost of service <br />study as described in Section 7.2. <br /> <br />7 , 2 Every three <br /> <br />(3) <br /> <br />years, <br /> <br />a detailed revenue <br /> <br />requirement shall be developed on an actual historical cost <br /> <br />test year basis allowing for reasonable and necessary <br />expenses of providing such water service and allowing for <br /> <br />known and measurable adjustments. <br /> <br />Such adjustments shall <br /> <br />allow <br /> <br />for <br /> <br />year-end <br /> <br />trending <br /> <br />and <br /> <br />the <br /> <br />spreading <br /> <br />of <br /> <br />non-recurring expenses over an appropriate benefit period. <br /> <br />CITY shall be allowed an adequate opportunity to recover all <br /> <br />of its cost of service, <br /> <br />The first test year shall be <br /> <br />October 1, 1989, through September 30, 1990, and the first <br />detailed cost-of-service study shall be performed by an <br />independent utility rate consultant engaged by CITY during <br />r, <br />the first two (2) calendar quarters of 1991 based on audited <br /> <br />data for the immediate past six (6) months ended September <br /> <br />30, 1990. On a three (3) year cycle thereafter, a complete <br /> <br /> <br />detailed rate study will be performed with the same <br /> <br />methodology used in the previous rate study by an <br />independent utility rate consultant engaged by CITY, except <br />that the study shall be based on the entire test year rather <br />than the last six (6) months. In the interim period between <br />complete detailed rate studies, this contract water rate <br />shall be adjusted by CITY using the same methodology adopted <br /> <br />-7- <br />