Water and sewer rates will go up
LVMWD cites higher costs, regulatory issues
By Stephanie Bertholdo  bertholdo@theacorn.com

The Las Virgenes Municipal Water District announced potable water rates and sewage costs will increase over a five-year period starting Nov. 1.

Sewer charges for single-family dwellings will rise about 47 percent during the first year and will double by year five.

The increase in the cost of drinking water is the first in 12 years following a series of sharp rises in the early '90s. The district serves more than 65,000 customers in the cities of Agoura Hills, Calabasas, Hidden Hills and Westlake Village and some unincorporated areas of Los Angeles County.

Environmental concerns, escalating energy and chemical costs, and a mandated $10-million upgrade to the district's Tapia water treatment facility were among the factors said to be driving the rate hikes.

Conservation incentives have been woven into the potable water proposal. John Mundy, LVMWD general manager, said the district's water-billing tiers will be readjusted and the new tiers will encourage more water conservation.

"If our typical single-family residential customers who use 70 billing units over two months can reduce usage to 67 units or less, they may actually see a small decrease in their water rates the first year of the new rate structure," Mundy said. "The five-year rate proposal allows our customers and the district to gradually adjust to and plan for the new rates."

Customers with exceptionally low water use (less than 16 units per billing period) would also receive a 10 percent discount on sewer charges.

As an example of the sewer fee structure, Mundy said a typical family that now pays $57 bimonthly for sewer services would pay $84 during the first year of the district's new tiered structure. Rates will gradually increase each year, and by the fifth year (2011-12), the average bimonthly rate will be $119, Mundy said.

"Sanitation costs are driven by the need to build, operate and maintain facilities that comply with the stringent conditions in our operating permit," Mundy said. "In 2005, the community helped us avoid a $160-million project that did not demonstrate clear environmental value. But the regional board's permit for Tapia's effluent contains performance requirements that make infrastructure investments estimated at greater than $10 million necessary."

The cost to run the Tapia Water Reclamation Facility is particularly high because it provides wastewater treatment services for much of the Santa Monica Mountains area and the Malibu Creek watershed, all of which are environmentally sensitive areas, he said.

Agoura Hills Mayor Dan Kuperberg said the higher water rates are a "huge concern" to the city and its residents.

"We've worked hard with the water district to promote conservation, education and recycled water--everything we could do to keep rates down and protect the environment," Kuperberg said.

Mundy said that even with the price increases, Las Virgenes customers pay less than many districts in California. "Ratepayers in some California communities are paying upward of $100 or more per month for sewer service," he said.

Residents of multi-family homes will experience a slower rate increase over five years, Mundy said.

Single-family residential customers will still pay less than $2 per day for sewer services.

"Our previous investments in infrastructure have served us well," Mundy said. "We remain a leader in the use of recycled water for irrigation, which takes on added importance during a dry year such as this one. Our composting facility has proven to be a wise investment for the environment with added benefits to our ratepayers in light of the difficulties other agencies have experienced with biosolid disposal outside their respective service areas. We're fortunate to have a local solution."

"As someone who will be affected by the increase, it is difficult to accept a doubling of the fees over less than a five-year period," said John Edelston, Agoura Hills City Council member. "At the same time, I care greatly about the Malibu watershed. If we want to preserve our bays and oceans for our children and their children, we need to invest in keeping what flows into (the water) as clean as possible."

Mundy admitted he realizes that nobody "likes" higher rates. But with 12 years with no major rate increases he believes the district has done an admirable job keeping rising costs at bay.

"I would be hard-pressed to identify any major product or service with a similar record," Mundy said. "I believe it demonstrates we're doing our best to contain costs while we continue to provide reliable water service and treat wastewater in a safe, environmentally sensitive manner."

The new rates will be implemented Nov. 1 following the season of peak water use. Mundy said customers have plenty of time to implement conservation measures, including the installation of more efficient irrigation systems. The majority of water used at home goes to irrigation, Mundy said.

Las Virgenes customers will receive mailed notice of the proposed rate changes. The district will hold an open house forum Thurs., Aug. 23 to address questions about the proposed rate structure. A public hearing on the rate proposal is scheduled for 7 p.m. Mon., Sept. 10 at district headquarters, 4232 Las Virgenes Road, Calabasas.