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The current structure encourages both year -round conservation measures as well as a heightened incentive for both residential and non- residential properties to monitor water used for irrigation purposes. The following chart depicts the percentage of single - family (SF) homes that fall into the current water rate categories. Water Rate Tier % of SF Homes: Winter % of SF Homes: Summer 70veO gallons per quarter 90% 85% per quarter 10% 15% Total 100% 100% As this table indicates, under the current water rate structure, 10 -15% (950- 1,400) of single - family homes are impacted by the higher rates. If we lowered the threshold for Tier 2 to 20,000 gallons per quarter, approximately 20 -30% of single - family homes would be impacted; or double the current amount. It has been suggested that the current rate structure doesn't do enough to encourage water conservation. It could be argued however, that before such a conclusion is drawn there ought to be some amount of discussion and analysis to determine; 1) what amount of household usage is reasonable, and 2) whether Roseville residents are adhering to that standard. It could further be argued that education and awareness could prove to be equally effective in promoting water conservation as would a financial incentive or penalty. Especially if that incentive is a moderate one compared to what a household is already paying. In either case, it is very difficult to establish a clear cause -effect relationship of these efforts given the variation in household occupants and other factors such as rainfall amounts. I'll conclude by returning to the cautionary statement noted above regarding the potential unfairness that tiered water rates can have on larger families. Although our current usage threshold for reaching the 2 °d rate tier is at 30,000 gallons per quarter, let's use 15,000 gallons for illustrative purposes. Let's assume that the per - person water usage for someone that follows moderate water conservation measures is 5,000 gallons per quarter. A 3- person household would use 15,000 gallons per quarter and would not hit the higher tier. However, a 4- person household would use 20,000 gallons per quarter and hit the higher tier simply because there are more people living in the house. On an individual basis the 4- person household is just as conservative in their water use, but they pay a higher rate nonetheless. Taking this example further, let's assume that the 4- person household is even more conservative and uses only 4,500 gallons per quarter, per person. This amounts to 18,000 gallons per quarter which once again triggers the higher tier rate. In this example, the 4- person household pays a higher rate despite having superior conservation behaviors compared to the smaller household. This example underscores the policy challenge of instituting a water conservation rate structure that is effective without punishing those that are already exhibiting the behavior you're trying to foster. 10