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The second agreement provided for conducting a Water and Wastewater Impact Fee Study. This study <br />was to include: <br />• A review of current capital costs, near-term expansion plans, system capacities, and <br />customer demand <br />• A development of impact fees <br />• A review of the level of service criteria for each utility service <br />• A final report <br />ANALYSIS <br />Part b Rates <br />During the Comprehensive Water, Wastewater, and Reclaimed Water Rate Study, the consultant <br />reviewed the customer data received from IRCDUS as well as the corresponding utility financial data for <br />the same time period and concluded that the data appears complete and representative of the <br />customer classifications, Equivalent Residential Units (ERUs), and consumption (flow). An ERU is defined <br />as "the amount of water used or wastewater produced by a typical residential unit", or a maximum of <br />7,500 gallons per month. Emphasis of this effort was based on equitable cost recovery, revenue <br />sufficiency, the Capital Improvement Plan (CIP), and credit worthiness. <br />Equitable Cost Recovery <br />The consultant did a comparative analysis between ERUs, consumption, and revenue for each customer <br />classification. The key customer classifications include single family residential, manufactured homes, <br />multi -family residential, irrigation, governmental and commercial accounts. Data shows that there are <br />similar percentages between the ERUs, consumption, and revenue for each of the customer <br />classifications, thereby suggesting that the existing rate structure generates revenue on a reasonable <br />cost of service basis and thus is just and equitable. <br />264 <br />Page 2 of 9 <br />