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City Manager .Malone announced that Mr. Bob McClain was present, and he is <br />with the firm of David M. Griffith & Associates, Ltd., who summarized for <br />those in the audience and the T.V. audience the report that his firm has made <br />concerning the Water and Sewer Rates, and he knew that there was a meeting <br />where this has been done once, but not all persons were present. At this time <br />City Manager Malone called on Mr. McClain to come forward and review that <br />report with the Council. <br />Mayor Clifford declared the public hearing open to receive comments <br />concerning the City of Paris Report on the Development of Water and Sewer <br />Rates. <br />Mr. Bob McClain came forward telling what he would like to do is go through <br />and briefly summarize the finding of the study. Mr. McClain said the first <br />question that we need to answer is why does the City of Paris use a rate <br />consultant. The City of Paris and many other cities in Texas and across the <br />nation use independent rate consultants for several reasons. First of all, a study <br />such as this takes anywhere from 160 to 200 hours over a two to three month <br />period, and staffing in most of the cities do not have the time to do this. Another <br />reason is because of the experience and the expertise. Mr. McClain said this is <br />all they do, water and sewer studies, solid waste studies, storm water drainage <br />utilities studies, and multiple year financial planning. Mr. McClain also said <br />that the City has a lot of large users and contractual agreements that do require <br />the use of an independent rate consultants on a periodic basis. <br />Mr. McClain explained that the first step in doing the rate study is actually to <br />develop a financial plan over a three or five year period. Mr. McClain said <br />what the financial plan does is tell you what the overall revenues needs to be <br />over the three or five year period. Also, it identifies for you all the costs that the <br />City expects over that period. The next step would be to allocate the cost <br />between water and sewer for each individual year, and in the City's case, on the <br />water side, the third step is to go through a process, where they identify, through <br />a methodology called a base extra capacity methodology, the cost you need to <br />