Laguna water district proposes rate increase

Turning on the faucet will cost a few pennies more if a Laguna Beach County Water District proposal doesn’t get rejected by a majority of its customers.

District officials will hold a public hearing at 4:30 p.m. Tuesday, at the district office on Third Street, to present its proposal to increase rates and switch to a tiered system of billing, based on use.

“The rate increase is necessary because our suppliers have increased the costs to the district by 16.8%,” said district General Manager Renae Hinchey. “Last year, the cost increased by 9.7%, and we thought that was bad, but this is the largest increase I have seen in my 17 years in the water industry.”

Hinchey opined that water rates will continue to increase, while water supplies are decreasing.

“The decreases are particularly critical for Laguna because 100% of all our water is imported,” Hinchey said. “New sources must be found.”

The public hearing on district proposals is required by Proposition 218, which also requires a vote of the affected customers.

“A written protest will be counted as a ‘no’ vote,” said Laguna Beach district Assistant General Manager Christopher Regan.

If 50% plus one of the district’s customers submit written protests before the end of the hearing, the proposed rate increases will be voted down. No written ballots will be distributed.

To be valid, the protest must be in writing, with the water-account holder’s original signature. Only one written protest per account will count in the voting. The protest should include whether the writer opposes increases in the water rate, the service charge or both.

Protests can mailed or hand-delivered to the Secretary of the Board, Laguna Beach County Water District, 306 Third St., Laguna Beach, 92651.

Under the proposed tiered system, 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 2,000 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.

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

“The tier system is a better distribution of costs,” Hinchey said. “People who use more water need to help pay for conservation programs.”

Increases in fixed service charges are also proposed, based on the size of the water meter. 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 would increase from $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 district’s proposal is approved: The 1-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.

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.

“South Coast has a different rate and is already tiered,” Regan said.

Hinchey said the increases are being kept as low as possible.

“The district is lean,” Hinchey said. “We only have 41 employees, and only 12 of them are in the office. We have deferred capital projects to ease the pain.”

For more information about the proposed increases and changes, contact Finance Manager Bob Westphal at (949) 494-1041

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

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