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Page 3 W &S Rate Study Committee Minutes 8/22/91 The next large item is the Booster Pump Station Rehabilitation and Addition of a 4.0 million gallon ground storage tank at an estimated cost of $5,000,000.00. The total for all of the proposed project is $14,526,000.00. Page three of the handout, Mr. Reed pointed out was a budget comparison for actual operating expenses for the water and wastewater operation for the current year and the proposed 1991 -92 budget, which will be presented to the Council for approval. The total cost of service shows an increase of 15.24 %, with the debt service showing an increase of 40.20 %. City Attorney Haynes pointed out that the Water Production, Sewer Treatment, and Lift Stations Departments are intensive user of electrical power. Mr. Reed discussed lost and unaccountable water that is lost due to fire fighting, water leaks, water main breaks, inaccurate meter reading, meter stoppages, so what they had done was to see what type system loss there was. On the handout showing Water Production, Consumption and Losses in Gallons, Mr. Reed pointed out that just because the City produces water through the Water Production Plant it does not mean the City gets to sell all the water, and discussed the types of water losses the City has. Mr. Reed told the Committee the total system loss is 11.51 %. Mr. Reed said the customers classes are broken down by residential, commercial which is broken down further by small commercial and industrial customers that have contracts, then we have Campbell Soup, Tenaska, Merico, Lamar County Water Supply District which are contract customers. Mr. Reed pointed out on the handout these customers classes are broken down by total sales per month giving an annual total consumption and the percentage of total water sold, giving an average sale through out the year is 11.57 million gallons a day. Mr. Reed told the Committee that the percentage of consumption by each class, they should pay the same percentage ratio of all the treatment cost at the plant, and stated that there are some of the cost that are allocated by volume. Mr. Reed said now that they have identified the budget, who is using how much water, and based on the budget presented, operating & maintenance portion, and debt service of $2,335,640.00, and the test year assumption characteristics patterns for a twelve month period, they have developed the proposed rates. Mr. Reed pointed out from the handout the base amount for residential customers will be $5.64, and included in that is 200 CF of water, and if they use more than 200 CF of water they will pay $1.41 additional cost for each 100 CF. Mr. Reed said for a 1" - 2" water meter the base cost of $15.25 for the first 1,000 CF, they will pay an additional cost of $1.31 for each 100 CF, if they have a water meter greater than 2 ", and they are not qualified to sign up for the industrial rates, you have to have a 4" meter to qualify for the industrial rate, the base cost will be $39.45 for the first 3,000 CF, an additional cost of $1.31 per 100 CF above the 3,000 CF.