Higher sanitation fees aimed at Las Virgenes

Las Virgenes Municipal Water District (LVMWD) customers can expect to see a hike in their sanitation fees this Julyofficials said. If the increase is adopted by the district's board of directors, customers will pay about $1.50 extra per month.

"We've done everything possible to contain our costs without affecting services to our customers," LVMWD GeneraManager John Mundy said"Still, sanitation expenses continue to escalate well beyond income, largely due to increased costs for electricity, gasoline and new regulations."

"Electricity (cost) is projected to increase 40 percent or more this year, in addition to the increases we've already absorbed," LVMWD spokesperson Post said. "Wastewater treatment is very dependent on power to pump and process sewage."

Escalating gasoline prices are affecting every segment of the economy and are another driving factor for the rate boost, Post said.

"In addition to our fleet of 75 vehicles, including some heavy equipment necessary to conduct operations, gasoline price increases are reflected in prices we are being charged for supplies, chemicals and other products necessary for operations," she said.

Increased government regulations also have had an impact on sanitation rates, Post said.

"Requirements of the new National Pollutant Discharge Elimination System permit for Tapia (Water Reclamation Facility) include $10 million in infrastructure, plus costs for additional monitoring, testing and studies," she said.

Because of environmental reasons, the Tapia plant is not permitted to discharge treated water into Malibu Creek for seven months out of the year. Post said the cost for the sevenmonth creek avoidance increased nearly 50 percent and now runs more than $700,000 a year.

Sewage treatment costs have been escalating since 1997. Post said costs have increased 150 percent over the past nine years.

Mundy said plans are underway for a complete cost allocation study, and that the district will work with a consultant to analyze rates and fees.

District officials say they have taken steps to keep their overhead down, from "streamlining" and making "process improvements" to utilizing "applied technology." As a result, the district now employs 10 percent fewer workers than a decade ago, officials said. Management staffing has also been reduced.

To save on electricity costs, the district said it has shifted heavy electricity use to off-peak hours when the cost of power is lower. By analyzing expenditures and postponing several projects, money was saved. The district also drew from its budget reserves to offset escalating costs, a move that prevented earlier rate increases.

"No one likes to raise rates but as a government public service, our sole source of income is charges to the people receiving our service," Mundy said.

District officials will review the budget again at the June 13 public meeting.