Functionalize and Allocate Functional Costs to Cost Components Sample Clauses

Functionalize and Allocate Functional Costs to Cost Components. Consultant will allocate the City’s O&M budget line items to one or multiple cost components based on the service requirements of that particular cost. The development of functional cost allocations will be consistent with guidance from American Water Works Association’s M1 Manual: Principals of Water Rates, Fees and Charges. This allocation will recognize base or volume related costs, maximum day and maximum hour capacity or demand costs, fire protection costs,, and customer service costs.
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