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MINUTES OF THE SPECIAL MEETING OF THE WATER & SEWER RATE STUDY ADVISORY COMMITTEE August 22, 1991 The Water & Sewer Rate Study Advisory Committee met, Thursday, August 22, 1991, 3:30 P. M., City Council Chambers, City Hall, Paris, Texas. Chairman George Fisher called the meeting to order with the following members present: Councilman Billy Joe Burnett, Director of Utilities, Herb Campbell, City Engineer, Earl Smith, City Attorney, T. K. Haynes, City Manager, Michael E. Malone, and Jim Farris. Also present was City Clerk, Mattie Cunningham. Chairman Fisher announced the purpose of the special meeting was to received briefing From Keith Reed, a partner of Reed -Stowe & Company that has been engaged to conduct a Water and Wastewater Rate Study for the City of Paris. City Manager Malone introduced Mr. Keith Reed of Reed -Stowe & Company who conducted the water and wastewater rate study for the City of Paris. City Manager Malone said this study is performed every three years. Mr. Keith Reed, Partner in the Firm of Reed -Stowe & Company, 12770, Dallas, Texas, along with Peter Otterson, Senior Consultant with his firm, and Project Manager for the rate study was present. Mr. Reed presenting the Committee, and those in the audience with a handout that corresponded with the overhead transparencies that were presented. Mr. Reed told the Committee that in the industrial contracts with the City such as Tenaska and Campbell Soup there is a requirements in those contracts that an actual cost of service and rate a calculation be done every three years to redetermine their rates. The City also has their rates redetermined every three year, and this is the calculation for this particular year. Mr. Reed said his firm had performed the same service for the year 1987 -88, and the results of that study will be compared to that study. Mr. Reed stated that in calculating rates for all the customers within the city regardless whether they are residential, commercial, or contract customers, you go through the entire process to determine a total amount of money that will be needed to run the water and wastewater system, then that amount of money is allocated to the various and sundry customer classes. Mr. Reed told the Committee that at the start of their program this year, the City had received and adopted an engineering report from Bucher, Willis & Ratliff & Company that envision major changes an improvements to the water system. It involves installation of approximately fifteen million dollars in projects over a period of three or four years. Mr. Reed said this brought about their analysis of what kind of impact that would have on the debt service that the city has to pay on bonds that they sale to accomplish those projects. Mr. Reed said they looked upon that economic impact at two ways. The City has currently outstanding quite amount of debts in the water and