2005/01/26 Council Agenda Packet

f using modern cost of service principles. Commodity charges will be reviewed no less frequently than every two years and adjusted, as needed, effective with the mid-March master meter reading of year of adjustment. The commodity charge shall include a rate multiplier (based on the sum of both demand and commodity charges) of 1.20. There shall be no rate multiplier for filtration. At any time during the term of this agreement the District may change from a rate multiplier charge to a connection fee charge based on the mutual agreement and execution by both the District and the City. 3. Any increase in or additional excise, utility or other taxes imposed by the federal, state, or other governmental agency, including such taxes which may be imposed upon the water and filtration utility by the Everett City Council, shall be borne by all classes of users of the City's water, including the District to whom such tax may be applicable, in proportion to the total revenues received from such users. B. Rates for Filtration 1. In addition to water rates discussed above, the District agrees to pay for cost of filtering water in accordance with the following formula: R = P (M + C + DS + FDS + O) X Q R = Additional cost for filtered water— (to be added to current water rate) computed to nearest ten- thousandth of a Dollar per 100 cubic feet. M = Maintenance & Operation cost for Lake Chaplain Filtration plant for preceding year less any credit from the sinking fund. C = Additional Capital Outlay costs attributable to Filtration plant for preceding year, less funds collected and used from the sinking fund. (See Section 2). DS = Annual debt service, exclusive of reserve interest income, if reserve funded from bond proceeds, attributable to total project costs for initial construction of Lake Chaplain Filtration plant, including coverage. FDS = Annual debt service, exclusive of reserve interest income, if reserve funded from bond proceeds, attributable to total project costs for future 0 3