05-E Campbell Soup Contract - Laserfiche WebLink

Home Browse Search

REVISED DRAFT alleviate revenue fluctuation and improve revenue performance through more reliable projections. A flat winter average is used under the assumption that on average throughout the year, customers will contribute water volumes to the City's wastewater system equivalent to the winter average. From a billing standpoint, the flat winter avera~e means that once a customer's winter average is determined, that customer will be charged that winter average volume every month (revenue stability and predictability). In addition, because of consistent volumes charged each month, it will be easier for City staff to determine and track whether the billing system is accurately capturing and billing the appropriate volumes. d. Due to the declining water volumes purchased by the City's largest customer, Campbell's Soup, as well as declining water volumes purchased by the Residential customer class, we recommend that the City begin reviewing their water and wastewater rates on an annual basis to ensure that the rates are sufficient to meet cost demands. e. In August 1999, Lamar County Water Supply District (LCWSD) purchased 38.7 million gallons of treated water through the City's distribution system. The City's contract with LCWSD states that LCWSD can not purchase more than 1.4 million gallons of water per day through the City's distribution system. The average daily water purchased by LCWSD in August 1999 was 1.25 million gallons. It is highly unlikely that LCWSD was able to maintain a steady rate of 1.25 MGD. We recommend that the City closely monitor LCWSD's distribution City o¡ Paris. Texas Waler and Wastewater Casl o¡Service Swdy March ZO03 5