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MINUTES OF THE WATER AND SEWER RATE STUDY
<br />ADVISORY COMMITTEE
<br />March 10, 1988
<br />The Water and Sewer Rate Study Advisory Committee met in special
<br />session, Thursday, March 10, 1988, 3:00 P. M., Council Room, City Hall,
<br />Paris, Texas. Chairman Kent called the meeting to order with the
<br />following members present: Councilman Bone and Councilman Wortham.
<br />Also present was City Manager, Michael E. Malone, City Attorney, T. K.
<br />Haynes, Director of Finance, W. E. Anderson, Director of Utilities,
<br />Herb Campbell, James Farris, Citizen, and City Clerk, Mattie Cunningham.
<br />Chairman Kent announced the purpose of the meeting was to received a
<br />briefing from our Consultants, Reed and Stowe, and Frees & Nichols, Inc.
<br />Jack Stowe of Reed and Stowe presented the Committee with a packet,
<br />attached hereto as Exhibit A, and made a part of these minutes,
<br />pertaining to the function of our water system stating the first two
<br />pages were the same as those presented at the last meeting with a few
<br />refinements which is basically taking the investment the City currently
<br />has, net of depreciation, and net of developers contributions and
<br />functionalizing that across as to base capacity, max day extra
<br />capacity, max hour extra capacity, and what investments dedicated to
<br />just having customers. You will see on page two that the grant total
<br />of $15,411,411. gets spread to base - $10,621,360., max day
<br />$1,757,741., max hour $22,663,832., and customer $368,478. Mr. Stowe
<br />pointed out that the next step was to develop from the operating data
<br />the allocation factors or percentages that each class has within these
<br />functions.
<br />Barry Sarma, Consulting Engineer with Freese & Nichols, Inc., appeared
<br />before the Committee explaining the percentage of customer class
<br />allocation factors on page three of the packet - Supply Reservoir - The
<br />City is using approximately 20% of the Reservoir the balance is in
<br />future storage, you will notice that Raw Water Transmission and
<br />Pumping, the base cost for example Campbell Soup pays 26.75% of that,
<br />but the extra capacity (max day) they pay only 6.69 %. Mr. Sarma said
<br />Campbell Soup takes a large amount of water through the system, but the
<br />variation is very little in their use, and usually the time of the
<br />usage is not during the peak time of other users. Mr. Sarma pointed
<br />out that under Treated Water Distribution there is a blank for
<br />transmission mains for Campbell Soup, explaining this is transmissions
<br />mains below 30 inches the reason for this is the 30 and 33 inch main
<br />that comes from the treatment plant from which Campbell Soup get it's
<br />water, and he has allocated that portion of the system to every
<br />customer class; therefore, these lines are used by residential and
<br />commercial only for distribution, storage and standpipes.
<br />Mr. Stowe said that now that we understand how the system is operating,
<br />they have functionalized the system based on how it is operating, they
<br />know how the classes of customers are using the system, they took the
<br />percentage and applied them to dollars as you can see on page four.
<br />Mr. Stowe said that the City has $15,411,411. invested and as of that
<br />amount they can identify there is $4,328,946. invested for the benefit
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