One of our readers, Michael Witzigman, found out the city of Santa Ana is charged by Orange County Water District (OCWD) to extract the ground water from aquifers, since the county owns the water rights. They charge the city $124.50 per acre feet or 325,850 gallons. This converts to $0.286 per 1ccf or 748 gallons. Thus the city is marking up the water they sell from 699% to 842% depending on the ccf usage. That sure is a good profit margin isn’t it?
Yes it is! Why is the City of Santa Ana totally ripping us off with regard to water rates?
And why isn’t this a bigger issue for residents, who are going to be asked in June to pay yet another water rate increase?
Lastly, Santa Ana spends more money on administration than just about any other water district in Orange County! What is up at City Hall?
“And why isn’t this a bigger issue for residents”?
In order for that to happen Pedro, the residents must first be aware that there is an issue. You will not scratch your ass until it itches.
Art,
Then we should make administration work for their money. Pay the bill with a lot of change preferably pennies. Wouldn’t that be a laugh may create new Jobs at city hall. The water increases create headaches for consumers. Paying in pennies should create headaches for management. They can’t refuse money is money.
Does that “mark-up” include transmission, maintenance and overhead?
Water costs basically come in tow parts:
1) the commodity cost (what MWD or OCWD charge to deliver the basic stuff; and
2) infrastructure construction, maintenance, electricty (to operate pumps, etc) salaries and benefits to employees; never overlook “fees” that cities often transfer into their general funds from utility funds. This is ostensibly because utilities use up public infrastructure, but in reality is a way to shift tax revenue and muddy up the waters (so to speak).
Santa Ana may be lumping the two different costs together.
David,
We are paying for 20 years of neglect of our infrastructure by our city manager.
This begs for an investigation.
I imagine some folks charged with the maintenance of Santa Ana’a infra-structure may be praying that we don’t witness the street flooding like L.A. and Baltimore have recently – The Good Lord, as far as I know, doesn’t ‘do’ water mains -
Better get some hip-waders, and park your car on a hill. Probably won’t be long before the neglected items start crumbling -
Will the prices go even higher? Typical family of 4 pays over a hundred bucks a month – thats with NO lawn to water – ouch!