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2019 Water, Recycled Water, and Sewer Rate Study 4. Rate Structure <br />Tiered Rates <br />Tier 1 Rate Adjustment \ccF/ = Change in OCWD Unit CostsG—CITl ) <br />Tier 2 Rate Adjustment (cIF/ = Change in MWD Unit Costs(ccF/ <br />Recycled Water Rates <br />Tier 2 Rate Adjustment (ccF) = Change in OCWD Green Acres Unit Costs (ccF) <br />Figure 4-4: Pass -Through Adjustment Formulas <br />Rate Adjustment Notification and Publication - This report advises the City that, pursuant to Government <br />Code 53756, the City must give notice to ratepayers of any pass -through adjustment to water rates at <br />least 30 days prior to the effective date of the adjustment. This can be done on the ratepayer's invoice <br />(for example in the "notes" section of the invoice). It is also important to note that, due to the Pass - <br />Through Adjustment Policy, the Water Usage Charges that are charged by the City in FY 2020/21 <br />through FY 2023/24 are likely to be different from rates shown in Schedule 13 through Schedule 17 (for <br />those same years). Each year, the actual rate schedule will be a function of the pass -through <br />adjustments effectuated in the prior years. As such, the Study recommends that the City continue with its <br />existing practice of posting rate schedules at the time that they are effective (as adjusted per the Pass - <br />Through Adjustment Policy), while meeting the 30-day notification requirements stated above. This <br />recommendation is preferred to posting Schedules 13 through Schedule 17 as they are shown in this <br />report, due to the dynamic nature of the annual pass -through adjustments (which may create confusion <br />for rate payers). <br />4.7 FOG CHARGE <br />The Sewer Enterprise has a Fats, Oils & Grease (FOG) Program in order to manage the sewer accounts <br />whose discharges are the most problematic for sewer collection system clogging (which are <br />predominantly food preparation establishments). The calculation of this charge is simply based on the <br />cost of the program divided evenly amount the FOG accounts. This study has found that the annual <br />consulting costs are $400,000 and Sewer Enterprise staff time (2 FTEs of Water Quality Inspectors) is <br />approximately $273,000. There currently are 1,372 FOG accounts, which results in a charge of $40.92 <br />per month ($673,000 divided by 1,372 divided by 12 months). The FOG Charge will increase at the same <br />percent rate increases as the sewer service rates (see Appendix F). <br />City of Santa Ana Stantec 135 <br />