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DEC-04-2091 15:44 REED, STDWE 8 YRNKE, LLC <br />512 450 9515 P,02 <br />~ REED, STDWE & YANKE <br />a Limited LiaMllryfompany <br />December 4, 2001 <br />Mr. Mike Malone <br />Ciry Manager <br />Ciry of Paris <br />P.O. Box 9037 <br />Paris, Texas 75461-9037 <br />Re: Water aud Wxstewater ConsulHog Services <br />Dear Mr. Malone: <br />Reed, Stowe & Yankc, LLC (RS&Y) is pleased to have tlvs oppomuiiry to provide the Ciry of <br />Paris water and wastewater consulting services. Based upon ow conversations with you and the <br />Ciry Attorney, Mr. Larry Schenk, it is our understending tha[ the Ciry desires assistance in the <br />perfonnance af a retail water and wastewater rate study in compli8nce with cxisting conhacts <br />with Campbell's Soup and 7enaska III. <br />This engagement letter speeifically iden6fies the scope of scrvices to be provided and the <br />associated timing, fees, and staffing. <br />Scape oi Services <br />RS&Y will perform the seme level of services to conduct this study as were provided in the <br />performance of the 1999 study. It is our understanding that an update of the 1999 sNdy is <br />rcquired at this time due to the contractuel rcquirements with Campbell's Soup Company and <br />Teneske III, which provide for rate adjushnrnts every tltrtc years. The last rate adjustrnent for <br />these rntities was in 1998. <br />During the performance of this study, specific attention will be given the cucrent stetus of lost and <br />unaccounted for water on the system. <br />TiminQ <br />A delivcrable of the 1999 study wes a'rate model' supporting tha 1999 study. It is our opinion <br />ttiat the presente of this model will signifecantly reduce the level of effort necessary to perform <br />this study. We anticipate issuance of the final report within sixry days from the iniHation of the <br />study. <br />Fees <br />While RS&Y is confident that the existittg rete model will signi8cently reduce the level of effort <br />required, it has bGtn two years since RS&Y has worked with the City's Financiel end operational <br />5806 Mesa Drive, Suite 310 • AuSt1n,TX 78731 • P(512) 450-0991 • F(512) 450-0515 <br />