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2019 Water, Recycled Water, and Sewer Rate Study <br />4. Rate Structure <br />Table 4-5: Monthly Sewer Utility Charge (FY 2019/20) <br />5/8" x 3/4" <br />$5.60 <br />$8.40 <br />$9.33 <br />3/4" <br />$7.93 <br />$12.12 <br />$13.52 <br />V <br />$12.59 <br />$19.57 <br />$21.90 <br />11/2" <br />$24.23 <br />$38.20 <br />$42.85 <br />2" <br />$38.20 <br />$60.55 <br />$68.00 <br />W <br />$82.43 <br />$131.32 <br />$147.62 <br />4" <br />$147.62 <br />$235.63 <br />$264.96 <br />6" <br />$303.61 <br />$485.21 <br />$545.74 <br />8" <br />$559.71 <br />$894.97 <br />$1,006.73 <br />10" <br />$885.66 <br />$1,416.49 <br />$1,593.43 <br />4.5 CALCULATION OF VARIABLE WATER USAGE CHARGE <br />The following section explains how the proposed Water Usage Charges were developed based on the <br />cost of water supply. <br />4.5.1 Purchased Water Costs <br />The $39,329,459 in Potable Water revenue requirements (see Section 3.1.3) is largely made up of water <br />purchase costs, and to a lesser extent water production electricity and treatment. The City has two <br />potable water sources: <br />1. Groundwater Supply: The City pays OCWD for the right to pump groundwater, which makes up <br />approximately 75% of the City's water supply. Between the payments to OCWD and pumping <br />energy costs, this groundwater composes approximately 56% of the City's water supply costs. <br />2. Imported Water: Water purchased from MWD makes up the remaining 25% of the City's water <br />supply and accounts for 44% of the City's water supply costs. <br />A final element of the City's water portfolio is the revenue requirement for Recycled Water ($268,937 per <br />Section 3.1.3) which the City purchases from OCWD and provides to its 25 recycled water customers. <br />4.5.2 Water Usage Charges <br />The potable water rates that are proposed in Year 1 (FY 2019/20) for single family residential, multi -family <br />residential, and non-residential accounts are designed to be recovered through two tiers by assigning the <br />proportionate share of supply volume and supply costs to each tiered allocation and rate, respectively. <br />The Tier 1 rate is designed to recover the cost of OCWD rates for groundwater extraction, the electrical <br />costs of water production, the electrical costs of distributing that volume of water, a portion of the CIP, <br />and a portion of the G&A costs. The Tier 2 rate is designed to recover the costs of purchasing imported <br />City of Santa Ana Stantec 132 <br />