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F. Treated Water Svstem Allocation Distribution Lines Since the entire treated water transmission and distribution system is not allocable to all of the five customer classes, system cost allocation percentages of the distribution system not common to all are determined separately. All lines larger than 24 inches in diameter are Jlssumed to be common to all treated water customers. Hydrants Fire protection service is not common to all five customer classes of~e City's water system. .... ... . Therefore, operating and maintenance costs associated with f1l"e~~rviceare distribut~d to.me residential and commercial customers of the City on tl:1~basis of their meter equiyalency demands. Meters Meter costs are distributed on the basis of equivalent 5/8" met~rs. Table A-4 in Appendix A shows the number of equivalent meters in.ili~ City's water system. Costs are distributed on the basis of the number of equivalent meters; Warehouse Warehouse costs are allocated to the customer classes basedtipon the functionalized component allocation factors as sho"YIJ,OIi Tabn~A-6 in Appendix A. BiIlin2 and Collectin2 ','.::. .-,:<:\: ---> Other billing and colleCt!pg c9~ts'areallocated to all five customer classes based upon the number oftest y~ar bills sentt(j.each customer class. Administrative Fees Admimstrative fees co\'er the~xpenses of the general government in connection with administerillg the UtilityiFund. Such costs vary by customer class depending on the requirements of each clas~and are allocated among classes based upon each class' average day. Franchise Fees Franchise fees are fees paid to the City for use of the City's rights-of-way and are generally charged on gross revenues; therefore, costs were allocated to each customer class based on each class' cost of service. City of Paris, Texas Water and Wastewater Cost of Service Study June 2007 10