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b. The basis for the calculation of the <br /> adjustment shall be the actual apartment service <br /> being provided in the City of Santa Ana as deter- <br /> mined by the records of the City' s contractor . <br /> c. The amount of the adjustment shall be the <br /> difference between the total income from that service <br /> under Santa Ana rates and the total income from the <br /> same service under other cities ' rates . <br /> d. The adjustment shall then be divided by <br /> the total residential service units in Santa Ana <br /> and applied to the appropriate city' s prevailing <br /> rate . <br /> PROCEDURE <br /> 1 . Determine the prevailing rates of each of the <br /> cities and record on Schedule A attached , excluding <br /> therefrom any amount paid for gate fees , if applicable . <br /> 2. Determine which of the cities require an <br /> adjustment for apartment service and determine their method <br /> and rates for payment. Summarize that information on <br /> Schedule B attached . <br /> 3 . Determine the actual apartment service provided in <br /> Santa Ana and record on Schedule C attached . <br /> 4 . Calculate the revenue amounts using the rates from <br /> Schedule B and the service from Schedule C. Record the <br /> revenue amounts as shown on Schedule C. <br /> 5 . Summarize the revenue difference and divide by the <br /> total Santa Ana service units . The resulting rate per <br /> service is the adjustment to be entered on Schedule A. <br /> 6. Complete Schedule A by adding the adjustments to <br /> the prevailing rates and averaging the adjusted rates . <br /> The above comments and procedure , with attached <br /> Schedules A,B and C, specifically define the method of <br /> determining a Residential Average Rate . This procedure will <br /> be used to determine an average rate as of July 1 , 1978 , <br /> using rates in effect July 1 , and each July 1 thereafter <br /> during the term of the agreement. <br /> 2 of 2 <br />