The City of Garden Grove Water Division incurs ongoing operational costs, such as labor, commodities, and contractual services in providing water service to the community. A water rate schedule shall be established to consist of a minimum charge and commodity delivery charge to pay for the system operational costs. A Capital Improvements Charge is established to pay for future capital improvements needed to meet future demands on the system. Accordingly, the following water rate structure is established for water usage:
(a) MINIMUM CHARGE. The minimum commodity charge for metered service shall be:
|5/8 x 3/4||$18.02|
|1 - 1/2||$68.92|
(b) COMMODITY DELIVERY CHARGE. The unit charge for metered services shall be:
|UNITS OF WATER (1 UNIT = 100 CUBIC FT) ("hef")
INCLUDED IN TIER 1 PER BILLING PERIOD
|METER SIZE||MAXIMUM hef, TIER 1|
|5/8 X 3/4||33|
(c) CAPITAL IMPROVEMENTS CHARGE. The capital improvements recovery charge for services shall be:
|5/8 x 3/4||$3.00|
|1 - 1/2||$15.00|
(d) SPECIAL RATE FOR SMALL USAGE.
All residential customers with 5/8" x 3/4" meters who use 6 units or less of water in a billing period shall pay the minimum charge and the capital improvements charge as denoted in subsections (a) and (c), providing the water usage remains at 6 units or under. If usage exceeds 6 units, then the water customer shall pay the minimum charge plus the commodity delivery charge and capital improvements charge provided in subsections (b) and (c).
(e) ANNUAL RATE ADJUSTMENTS.
(1) The City Manager is authorized to administratively adjust water rate charges on an annual basis, based upon actual increases incurred by City for acquisition of ground water and imported water. Such adjustments shall take effect on or after July 1st of each fiscal year.
(2) The rate adjustment shall be calculated pursuant to the following formula: The percentage of pumping rate shall be multiplied times the cost of ground water per acre foot and added to the product of the percentage of imported water times imported water costs. This shall yield an average cost per acre foot. The existing per acre foot cost shall then be subtracted from the new total per acre cost under this formula. The difference between the two shall then be divided by 435.6 billing units per acre foot. The product of this division shall then constitute the new additional cost per billing unit.