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MEMORANDUM <br />Page 3 <br />B &V 175203 <br />B &V File A4 <br />12 June 2015 <br />Table 2: Change in Total NN ater Usage <br />6,263,314 <br />5,345,000 <br />4,688,409 <br />4,266,700 <br />2,857,248 <br />2,653,300 <br />659,135 <br />643,100 <br />1,238,037 <br />1,059,300 <br />_ 566,277 <br />359,600 <br />• , • 12,044 <br />11,200 <br />The customers allocation for each billing period will be calculated on each bill based on the above <br />targets. The lower percentage reduction for commercial customers takes into consideration the <br />limited ability of commercial customers to reduce interior use without potentially impacting health <br />and safety and / or significant process changes. Many commercial customers also have irrigation <br />only meters where they will be asked to reduce usage by a greater amount to meet the City target. <br />Process water is exempt from reduction targets. Process water, defined consistently with and <br />pursuant to the California Department of Water Resources' definition, means water used by <br />industrial water users for producing a product or product content, or water used for research and <br />development. Process water includes, but is not limited to; the continuous manufacturing <br />processes, water used fortesting, cleaning and maintaining equipment. Water used to cool <br />machinery or buildings used in the manufacturing process or necessary to maintain product quality <br />or chemical characteristics for product manufacturing or control rooms, data centers, laboratories, <br />clean rooms and other industrial facility units that are integral to the manufacturing or research and <br />development process shall be considered process water. Water used in the manufacturing process <br />that is necessary for complying with local, State and federal health and safety laws, and is not <br />incidental water, shall be considered process water. Process water does not include incidental, <br />commercial or institutional water uses. <br />Surcharge for Exceeding Allocation Targets <br />As allowed by the City's Municipal Code, the City can assess a surcharge for usage that exceeds <br />allocation levels. This surcharge is applied only to the amount of usage in excess of the pre- <br />determined allocation. The basis for the surcharge amount can include, but may not necessarily be <br />limited to, the following: <br />1. The surcharge the City will have to pay M WD and /or the State for exceeding its allocation. <br />The surcharge can be calculated the exact same way that the MWD will calculate any City <br />surcharge, thus passing to the customer any surcharges it may have caused the City. Should <br />the City not incur any surcharges (other customers used less than their allocations), funds <br />collected from surcharge may be refunded to the customers, retained and used for the <br />75E -6 <br />