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City Council Water & Sewer Subcommittee Feb. 18, 2003 Page 10 breakdown of budget costs. Mr. Anderson explained that these are expenses paid for out of the General Fund that benefit the Water and Sewer Fund such as management, legal, finance, computer system and engineering. Mr. Wilson said that the Water and Sewer Fund is paying 1.1 million dollars in overhead to the General Fund and wanted to know how that was allocated. Mr. Anderson advised that number is looked at in the rate study each time. Mr. Anderson explained that what the city anticipates doing in terms of the rate study, they want the consultant to come down and talk to the City Council about preliminary numbers. They want local industry brought in to look at the rates as they apply to their company. The city wants to meet with big industrial users as well, before thinking about finalizing anything. Councilwoman Neeley stated that it is actually the purpose of this committee to examine facts and exchange information - that the rate study does not just appear with out any warning to everyone. She said that it was the intention of the Mayor when he put the committee together that they could serve as a conduit of information. Mr. Anderson felt that it was a profitable and a valid way of doing it is to have industry input before it is finalized. If they have questions, those questions get answered. Chairman Plata asked Mr. Campbell to prepare a history of breakdown of equipment and maintenance for all of his departments and have it available for the next meeting of the committee. Chairman Plata said he was handed a study at the last meeting which was the City of Paris Water /Wastewater Cost of Service and Rate Design Study, October 1999, from a company called Navigant Consultants. This study said that the metered water consumed by Toco, and any consumption of 178, 571 gallons, will be charged at $0.84 per gallon. It goes on to say that the contract guarantees minimum rates and there is a way to provide a minimum charge. Further, their recommendation was to deem the contract null and void and to start charging Toco the right amount for wastewater. Mr. Plata asked if this had been done.