City of Garden Grove Public Works Garden Grove*

Opportunities for further water conservation exist especially with regard to landscape watering. The Garden Grove Water Services Division agrees with this finding. The City of Garden Grove is signatory to the California Urban Water Conservation Council's (CUWCC) Memorandum of Understanding (MOU) on water conservation and is in the process of implementing CUWCC's 14 Best Management Practices (BMP's) towards water conservation goals. As signatory to the MOU and as a participant in water conservation activities, Garden Grove supports water education efforts by further raising public awareness about water conservation with regard to landscape watering. This is accomplished through information provided in the City's "Water Bill Insert," and education at public events such as, Garden Grove Pride, Garden Grove Strawberry Festival, Fire Services Day, Public Works Open House, Children's Water Educational Festival and the Public Works Equipment Show.

Conservation pricing, or tiered pricing, with a fair and reasonable base allotment, followed by tiers of higher rates, can be an effective tool to motivate further conservation. The Garden Grove Water Services Division agrees with this finding. The City of Garden Grove currently utilizes tiered pricing as an incentive to encourage customers to conserve water. The City's current tiered pricing structure is reflected in the commodity charge, which consists of four tiers with increasing usage blocks tied to higher rates. The rate increases with each tier. The first tier captures efficient and essential water users. The last tier is termed "excess" which the City has determined to be an excessive water usage. Approximately 80% of residents remain in the first tier, which demonstrates the effectiveness of this rate structure by successfully deterring residents from excessive consumption. Although the City presently uses a tiered pricing structure, the City has not conducted a comprehensive base allotment 13802 Newhope Street • P.O.Box 3070 • Garden Grove, CA 92842 714.741.5375 • www.ci.garden-grove.ca.us 4 Honorable Nancy Wieben Stock August 20, 2008 study. To further water conservation efforts and strengthen the City's current tiered pricing structure, the City is presently partnering with the Municipal Water District of Orange County to complete a study on the development of fair and reasonable base allotments in conjunction with tiers of higher rates for the different classes of customers. This study will include per person indoor and outdoor allotments. Based on the findings from this study, the City will determine if changing the existing tiered pricing structure is warranted. Response to Recommendations