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<br />BARTLE WELLS ASSOCIATES 11 | Pag e <br /> City of San Leandro Draft 2024 Wastewater Rate Study <br />4 WASTEWATER COST OF SERVICE ANALYSIS AND RATE DERIVATION <br />BWA derived updated wastewater rates that account for both a) the overall rate increases identified in the <br />financial projections, and b) the proposed rate structure modifications. The proposed rates are designed to <br />equitably apportion and recover costs from the City’s customer base. The basic methodology used to develop new <br />rates includes the following steps: <br /> <br />Figure 4 – WW Cost of Service Analysis and Rate Derivation Process <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Derive Unit Rates for Wastewater Capacity, Flow & Strength <br />Divide costs allocated for recovery from flow and strength by total <br />loadings for each functional component to derive unit rates for <br />customer service, flow, BOD, and TSS. <br />Non-Residential Rate Derivation <br />Divide the revenue requirements for each <br />customer class by the projected units to <br />determine rates for each class. <br />Allocate Flow & Strength Costs to Customer Classes <br />Multiply unit rates by the wastewater flow and loadings <br />of each customer class to determine the revenue <br />requirement of each class. <br />Estimate Wastewater Flow & Strength Loadings <br />The wastewater flow, BOD, and TSS concentrations for each <br />class were multiplied by the billing units. <br />Allocate Cost to Functional Component <br />Each cost was allocated to function: <br />customer service, flow, BOD, and TSS.