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MINUTES OF THE SPECIAL MEETING OF THE WATER & SEWER RATE
<br />STUDY ADVISORY COMMITTEE
<br />April 7, 1988
<br />The Water & Sewer Rate Study Advisory Committee met in special session,
<br />Thursday, April 7, 1988, 5:45 P. M. Council Room, City Hall. Chairman
<br />Marshall H. Kent, Jr. called the meeting to order with the following
<br />members present: Councilman Wortham, James Farris, Herb Campbell,
<br />Director of Utilities, W. E. Anderson, Director of Finance, Michael E.
<br />Malone, City Manager, T. K. Haynes, City Attorney, and City Clerk,
<br />Mattie Cunningham.
<br />Barry Sarma, Consulting Engineer with the firm of Freese and Nichols,
<br />Inc., appeared before the Committee briefing them on the wastewater
<br />side of the City of Paris's rate study, and as of October 1987 there
<br />were 9,575 wastewater accounts of those, 8,191 were Residential, 1,355
<br />Commercial, 16 Industrial, and 12 outside the city limits customers.
<br />We found in the last two years the water effluent averaged 4.05 million
<br />gallons a day, out of that reach averaged approximately 1.33 (I &I), the
<br />BOD per day averaged 190 milligrams per liter. Mr. Sarma said he felt
<br />the system worked good in dry weather, but during wet weather there
<br />were problems due to bypasses. Mr. Sarma stated that in order to do
<br />this study they had to subtract out Campbell Soup's water usage in
<br />order to make a connection between the water and wastewater
<br />relationship of what quantity of water that is used that gets in the
<br />wastewater facilities because as you know, Campbell Soup buys close to
<br />50% of the clear water, and only discharges about 1% of the wastewater
<br />into the wastewater system. Lamar County Water Supply District has to
<br />be removed because they do not use the wastewater facility.
<br />Mr. Sarma stated that the test year data tells us that Residential
<br />Customers contribute 42% of the flow per day, 36.8% Commercial, 16.9
<br />Industrial, and 3.3% Merico. In terms of BOD contributions,
<br />Residential contributed 33.7% per day, Commercial 28.8 %, Industrial
<br />13.4, these are close to what their flow is, but Merico's BOD per day
<br />is 24.1% compared to their flow of 3.3% per day plus 9.7% per day for
<br />TSS. Mr. Sarma said on the basis of this, they have gone in and
<br />functionalized the cost into the components of plant collection,
<br />treatment, and customer cost.
<br />Jack Stowe of Reed and Stowe, explained that the process after
<br />receiving the allocation factors from Mr. Sarma is similar to those
<br />used for the water, that is, they functionalized the investments, then
<br />developed the revenue requirements, then they did the functional ization
<br />of the revenue requirements and allocated those to the customers
<br />classes.
<br />Mr. Stowe presented the Committee a handout , attached hereto as part
<br />of these minutes as exhibit A. Mr. Stowe said that based on records of
<br />the city, the city has a total of $9,848,178. invested in the
<br />wastewater system. Of that amount $4,380,805. is in the plant,
<br />$5,047,982. in collection, $69,516. Billing, and construction work in
<br />process is approximately $350,000. Mr. Stowe said in doing cost
<br />allocation the collection system is basically a volume related
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