Laserfiche WebLink
<br />7.3.1 An annual demand charge per million gallons per day (MOD) of Maximum Day Demand <br />of water delivered to CAMPBELL shall be $72,000 per MGD. <br />7.3.2 The volumetric charge shall be $0.45 per 100 cubic foot of treated water withdrawn by <br />CAMPBELL from the CITY's water utility system. <br />7.4 For the Initial Period, CAMBELL's Maximum Day Demand shall be established at 6.0 <br />MOD. <br /> <br />7.5 Each twelve (12) month period following the Initial Period, beginning June 1 and ending May <br /> <br />31 of the following year, shall be defined as a "Rate Year." <br /> <br /> <br />7.6 For cost of service studies following the Initial Period, and except for data associated with <br /> <br /> <br />the Maximum Day Demand, historical data accumulated during each twelve-month period ending <br /> <br /> <br />September 30 of the prior year, hereafter referred to as the "Test Year," shall be used. <br /> <br />7.7 Prior to the end of the Initial Period, a detailed Cost of Service Study will be performed by <br /> <br />an independent utility rate consultant chosen by the CITY, such study to be performed in accordance <br /> <br />with the methodology described in that excerpted portion of the Reed, Stowe & Yanke, LLC study, <br /> <br /> <br />March, 2003, attached as Exhibit 1. The Cost of Service Study shall be developed on an actual <br /> <br /> <br />historical cost test year basis (for the Test Year) allowing for reasonable and necessary expenses of <br /> <br />providing such water service and allowing for known and measurable adjustments, including satisfying <br /> <br />the City's obligations under current and future bond covenants. Thereafter, on an annual cycle, a <br /> <br />detailed Cost of Service Study shall be performed by an independent rate consultant chosen by the CITY, <br /> <br />again using the same methodology as the excerpted portion of the Study in Exhibit 1, unless and until <br /> <br />a different methodology is mutually agreed upon in writing by CAMPBELL and the CITY. <br />CAMPBELL shall pay one-half ('h) the cost of each annual Cost of Service Study, payable within thirty <br />(30) days of CAMPBELL's receipt of invoice from the CITY. <br /> <br />Water Purchase Contract - Page 6 <br />