25-AGREEMENT BETWEEN THE CITY OF PARIS AND DAISY FARMS

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F. Treated Water System 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 thc distribution system not common to all are determined separately. All lines larger than 24 inches in diameter are assumed to be common to all treated watcr customers. Hvdrlnts Fire pcotection service is not common to all five customer classes of the City's water system. '1'herefore, operating and inaintenance costs associated with fire service are distributed to the residential and commercial customers of the City on the basis of their meter equivalency dcmands. Meters Meter costs are distributed on the Uasis of equivalent 5/8" meters. Table A-4 in Appendix A shows the number of equivalent meters in the City's water system. Costs are distributed on the Uasis of the numUer of equivalent meters. Warehouse Warehouse costs are allocated to the custonier classes based upon thc fiinetionalized eomponent allocation factors as shown on Table A-6 in Appendix A. Billing nnd Collecting Other billing and collecting costs are allocated to all five customer classes based upon the numUer of test year bills sent to each customer class. Administrative Fees Administrative fees cover the expenses of the general government in connection with administering the Utility Fund. Such costs vary Uy customer class depending on the requirements of eacli class and are allocated among classes based upon each class' average day demaud. Franchise Fees Franchise fees are fees paid to the City for use of the City's riglits-of-way and are generally charged on gross revenues; therefore, costs were allocated to each customer class based on each class' cost of service. 10 Ciq, of Pm'is, Tetns Wnter mrd Wnstewnlei Cos( ojSeivice SaudN Jm:e 2010 - - 2 3 :i