Report 2013-126 Recommendation 5 Responses

Report 2013-126: Antelope Valley Water Rates: Various Factors Contribute to Differences Among Water Utilities (Release Date: July 2014)

Recommendation #5 To: Quartz Hill Water District

To ensure that water customers are aware of pass-through rate increases, Quartz Hill Water District should adopt a schedule of fees showing how these increases will affect its tiered usage charges before the new rates take effect.

Annual Follow-Up Agency Response From October 2017

During March, 2016 regularly scheduled meeting of the Board of Directors the new rate structure and rate study were adopted. This rate study plainly and thoroughly shows the methodology of how the rates were determined and derived. In addition to this rate study, a table was included in the Prop 218 mailer to show proposed adjustments by tier. This was mailed on January 29th, 2016.

  • Completion Date: March 2016

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented


Annual Follow-Up Agency Response From October 2016

During the March, 2016 regularly scheduled meeting of the Board of Directors the new rate structure and rate study were adopted. This rate study plainly and thoroughly shows the methodology of how the rates were determined and derived. In addition to this rate study a table was included in the Prop 218 mailer to show proposed adjustments by tier. This was mailed on January 29th 2016.

  • Completion Date: March 2016

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

Quartz Hill's notice of public hearing for proposed rate increases does not include a schedule of fees specifically for pass-through rates.

  • Auditee did not substantiate its claim of full implementation

Annual Follow-Up Agency Response From September 2015

During the September 2015 Board of Director meeting the Board of Directors authorized staff to execute a contract with Urban Future Inc. to perform a comprehensive rate study. It is anticipated at this time the rate study will conclude prior to January 1st 2015. Steps are being taken to ensure the next rate study common work practice is modified to ensure the transparency and mechanism of the pass-through rate structure. Quartz Hill Water District customers understanding of the process is paramount to confirm this understanding of the process a schedule will be added to show rates before and after.

  • Estimated Completion Date: 3/01/2016

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


1-Year Agency Response

Steps are being taken to ensure the next rate study common work practice is modified to ensure the transparency and mechanism of the pass-through rate structure. Quartz Hill Water District customers understanding of the process is paramount to confirm this understanding of the process a schedule will be added to show rates before and after.

  • Estimated Completion Date: 11//01/2015
  • Response Date: July 2015

California State Auditor's Assessment of 1-Year Status: No Action Taken

The district has not increased its rates since our report was released, therefore it has not adopted a schedule of fees. Furthermore, Quartz Hill has not developed any written procedures to address the recommendation.


6-Month Agency Response

During the next rate study the standard operating procedures will be modified to ensure transparency and knowledge of the pass-through rate structure by adding a schedule to show rates before and after.

  • Estimated Completion Date: 11/01/2015
  • Response Date: January 2015

California State Auditor's Assessment of 6-Month Status: No Action Taken

The district has not increased its rates since our report was released, therefore it has not adopted a schedule of fees. Furthermore, Quartz Hill has not developed any written procedures to address the recommendation.


60-Day Agency Response

At this time QHWD is reviewing our written Standard Operating Procedures to ensure the State Recommendation is achieved and followed.

  • Estimated Completion Date: 11/01/2014
  • Response Date: September 2014

California State Auditor's Assessment of 60-Day Status: No Action Taken

The district has not increased its rates since our report was released, therefore it has not adopted a schedule of fees. Furthermore, Quartz Hill has not developed any written procedures to address the recommendation.


All Recommendations in 2013-126

Agency responses received are posted verbatim.


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