2011-072 RES AGREEMENT BETWEEN CITY OF PARIS AND DAISY FARMS

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F. Trelted Water System Allocation Distributiou Liues Since the entire trcated water tiaiismission and distribution system is not al)ocable to all of the five customer classes, system cost allocation percentages of the distribution system not common to all are deterniined scparately. All lines larger than 24 inches in diameter are assumed to Ue common lo all treated water customers. Hvdrants Fire protection service is not common to all five customer classes of the City's water system. Therefore, operating and maintenance costs associated with fire servicc are distributed to the residential and coiumercial customers of the City on the basis of their meter equivalency demands. Meters Meter costs are distributed on the basis of equivalent 5/8" meters. Table A-4 in Appendix A shovvs the iuunber of equivalent meters in the City's water system. Costs are distcibuted on the basis of the numUer of equivalent meters. Warehouse Warellouse costs are allocated to the customer classes Uased upon the fiinctionalized component allocation factors as shown on Table A-6 in Appendix A. Billina 1nd Co1leCti►l2 Other billing and collecting costs are allocated to all five customer classes Uased upon the nuniber of test year Uills sent to each customcr class. Administ►•ative Fees Administrative fees cover the expenses of the general governmcnt in connection with 1dI111111StC1'lllg the Utility Fund. Such costs vary by customer class depending on the reqtiirements of eac11 class and are allocated among classes based upon each class' average day demand. Fraiicliise Fees Pranchise fees arc fees paid to the City for use of the City's rights-of-way and are generally charged on gross reveuues; therefore, costs were allocated to each customer class based on each class' cost of service. 10 Cilp of Pru•is, Te.cns Wnrer rurA 171asreivnter Cost vjService b'hu4>> June 2010