Water District OKs rate hike

The hike in water rates proposed by the Laguna Beach County Water District Commission is a drop in the bucket compared to what may be on tap next year.

Commissioners unanimously voted on Tuesday to recommend approval of the rate increase to the City Council, which sits as the district’s board of directors. The rate increase, based on a tiered system that charges heavy users more than average users is needed to cope with dwindling supplies and higher costs of wholesale water — 16.8% this year and perhaps as high as 30% the next year.

“Water supplies are the lowest since 1994 and Laguna Beach is 100% reliant on imported water,” district General Manager Renae Hinchey said at a public hearing on the proposed increase, held Oct. 28.

“We have to deal with it.”

Public comments and protests against the increase made at the meeting were included in the record, but did not persuade the commission to change its position.

A nine-year drought has depleted the water in the Colorado River, one of Laguna’s sources, and legal decisions to protect the Delta smelt (a tiny fish) have reduced the supply from Northern California, the other source.

Hinchey said three factors played into the recommendation to increase rates: current water costs, current economic times and water supply. The most compelling factor, she said, is a reliable supply, which is why the district is looking at desalinization and other sources.

”When you turn on the tap, you expect water to be there,” Hinchey said. “Water is a precious resource, but it is a great bargain at 8 cents a gallon, [delivered] 24/7.”

The increase and a switch to tiered billing was subject to a protest vote of the customers, due by the end of the hearing, as mandated by state Proposition 218. Fifty percent plus one of the district’s 8,500 customers was needed to vote down the increase. Fewer than 50 protests were submitted.

And fewer than a dozen members of the public attended the hearing. Most were there to pose questions, except for Jim McBride, who was a member of the district board of directors before the district became a subsidiary of the city and a member of the commission afterward.

“My only protest is that it is not enough of an increase,” McBride said. “In 15 years, we are going to have to supply 100% of water to our customers and I am not confident that the city can step up and solve the problem. We need to invest in alternative sources.

“I know the district is taking action, but it is very silent. I would like to see your efforts better publicized.”

McBride also recommended that the city design non-watered road medians and use “gray” (reclaimed) water for irrigation.

Waterless urinals have already been installed in most city buildings and park restrooms, Public Works Director Steve May said.

The commission recommended that the rate and billing changes be adopted by the board of directors at their Feb. 18 hearing, said Christopher Regan, district assistant general manager.

Water rates studied

Considerable study, as well as adherence to Proposition 218 regulations, which stipulate that charges to customers cannot exceed the cost of the water, went into the rate and billing changes before the commissioners came up with a proposal.

“The commission insisted we do a water rate study,” Hinchey said. “We looked a lot of options in the past six months and we determined that a tiered rate was the most fair. The Orange County Grand Jury asked all districts to look at the tiered rates and that was taken into consideration.”

Under the tier system recommended by the commission, single family residences that use up to 30 units of water per two-month billing cycle will be charged $3.02 per unit, eight cents per unit more than the current rate. One unit equals 748 gallons and 30 units is typical for three or four residents in a single-family dwelling with 2000, to 3,000 square feet of landscaping, district officials said.

Single family residences that use 31 or more units per billing cycle will be charged $3.29 per unit, up 35 cents per unit.

“People who use more water need to help pay for conservation programs,” Hinchey said.

All other classes of users, which include commercial, single-metered multi-family dwellings and irrigation customers, will be charged $3.17 per unit.

“A lot of agencies are going to the [tiered] route to encourage conservation,” Commissioner Mark Lewis said. “There are certain things we can live without — water isn’t one of them.

“This is a 2.1% increase for most customers. It is eight cents a gallon. Buy water at the store and it can come to $5 a gallon.”

Increases in fixed service charges have also been recommended, based on the size of the water meter on the property. The service charge covers operation and maintenance expenses for the entire system, regardless of water use.

About 85% of the district’s customers get water through a three-quarter-inch meter. If the increase is approved, the bimonthly service charge would go up from the current $20 to $21.60, to be added to the water-use charges.

For the 75% of the district’s customers who use 30 units or less water per billing cycle, the bimonthly bills will increase from a total of $108.20 to $112.20. Customers using 31 or more units, which has a greater impact on the system, would see higher increases.

Larger meters also will cost more per month if the commissioners’ proposal is approved: the one inch meter service charge would increase from $40 per bill to $53.99; 1 1/2 -inch meter charges would go up from $80 to $107.98; 2-inch meters from $100 to $172.76; 3-inch meter costs would almost double from $173 to $345.52; and a 4-inch meter would jump from $273 to $539.88.

“There will be transparency in our rates,” Commissioner Debbie Neev said. “I am an engineer and I can’t figure out charges on some utility bills.”

The rate increases apply to residential users, but that may change in the future to include hotels, restaurants and apartment houses, said Brian Jewitt, who conducted the rate study for the district. He also said further studies may take property size into consideration.

Only customers from the city’s northern limits to the old southern boundary at Nyes Place will be affected by the proposed changes. Residents south of Nyes Place are served by the South Coast Water District, which already has a tiered system and a different rate.

For more information about district programs and incentives for identifying water waste and improving efficient water use, call the hotline at (949) 341-1437.

BY THE NUMBERS

Proposed tier system for proposed water rate charges that encourages conservation:

 $3.02 per unit for single-family residences from 1 to 30 units of water use — 8 cents more than current rate. (One unit equals 748 gallons; 30 units is typical for three or four residents in a single-family dwelling with 2,000-to-3,000 square feet of landscaping).

 $3.29 per unit for 31 or more units per billing cycle — 35 cents more per unit.

Bimonthly service charge for meters would also increase, based on size:

 ¾-inch meter rate (85 % of customers use this size meter) would be $21.60; current rate is $20.

 1-inch meter would be $53.99; current rate is $50.

 1 ½-inch meter would be $107.98; current rate is $80.

 2-inch meter wold be $172.76, current rate is $100.

 3-inch meter would be $345.52; current rate is $173.

BARBARA DIAMOND can be reached at (949) 494-4321 or [email protected].