Water and sewer costs both escalate

Rising water and sanitation costs at the Las Virgenes Municipal Water District (LVMWD) could prompt further price hikes next year.

The LVMWD board of directors is already considering a staff recommendation to raise sanitation fees by $1.50 per

month starting in July, but if belttightening measures don't close the widening gap between income and expenses, other rate increases may follow, officials said.

Last month, the district began a budget review and learned thasanitation costs and the cost of potable and recycled water are expected to jump in price. Potable water will rise by an estimated $780,000 and recycled water used primarily for landscaping will cost an additional $400,000. The district's sewage processing expenses are expected to increase by $1 million.

Officials said they will try to offset the cost increases by reducing operating expenses and postponing capital improvement projects.

But the cost-saving measures will save less than half of the expected $2.2 million in increases.

"The primary drivers behind these increases are soaring energy costs, including electricity and gasoline, as well as regulatory costs that are associated with water and wastewater services," said Arlenes Post, water district spokesperson.

District officials hope further rate increases will be avoided. Brian Boudreau, the owner of a large horse ranch who spends approximately $20,000 a month on water during the summer, hopes so. He says his charges are "astronomical" and blames the rising rates on the need to repay long term bonds and pay for operations at the Rancho Las Virgenes Composting facility in Calabasas.

Although critical of higher rates, Boudreau said he trusts the judgment Board President Charlie Caspary.

"If (Caspary) said it had to be done, it would be true," Boudreau said.

LVMWD officials say some of the escalating costs are the result of a new National Pollutant Discharge Elimination System permit that regulates water pollution.

The permit applies to the Tapia Water Reclamation Facility in Calabasas, which turns wastewater into recycled water for landscape irrigation, but releases the excess into the Malibu Creek at certain times of the year.

During permit hearings last year the district told state officials that the Tapia plant was not the primary source of algae growth and pollution in Malibu Creek.

Still, the district was told it must add a $10 million de-nitrification facility at Tapia plant within five years. The cost will be passed on to customers in the form of higher sanitation fees.

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.

Education on watershed issues will continue to be a focus at the water agency, Mundy said. Water wise gardens will be promoted, and the district and other regulatory agencies will continue to engage residents to reduce watershed pollution.

Next year, the district will work on master plans for potable and recycled water and adjustments to various capital improvement projects.

Alternative disinfection facilities will be constructed at the Westlake Filtration Plant, and the district will continue to put into place an automated meter reading system.

District officials will continue budget discussions at their June 13 public meeting.