City Council Increases Fees

The Beverly Hills City Council voted Tuesday to increase some commercial utility fees, as well as fees associated with false police and fire alarms. Both increases will take effect Jan. 1.

The late payment fee for a commercial property's water and sewage bill will increase to 3 percent of the unpaid portion, up from 1.5 percent. The initial proposal was to increase the fee for residential property as well, until Councilwoman Nancy Krasne opposed it.

"My trash bill is $300 and there are two people who live at my house, so I have a problem with these fees," Krasne said. "I will live with commercial [fee increases], but I will not touch residential."

Krasne said her disappointment with newly installed, malfunctioning water meters contributed to her decision.

The utility fees in Beverly Hills have not been raised since 1992, said Chief Financial Officer Scott Miller. He presented the proposal to the council on Tuesday, with the hope that customers would start to pay their bills on time.

"You'd be surprised how many customers we have now who don't pay for…nine months," Miller said, adding that there are currently 367 commercial properties with outstanding water and sewage bills, and 270 residential properties that are behind.

He said that the city averages $640,000 in outstanding water and sewage bills each year, which correlates to $282,000 in interest that the city loses. The current revenue from late payments each year is $87,400, while the proposed plan would have brought in a projected $185,300.

"The goal is not for the city to raise revenue," Miller said. "The goal is to get customers to pay on time."

The city's current water and sewer fees rank in the 40th percentile of those included in a study Miller presented to the council. Burbank and Glendale have a 1.5 percent rate, while Pasadena and Santa Monica have the 3 percent rate that Beverly Hills has adopted.

The council also approved a fee to help reduce the number of false police and fire alarms, which tie up the city's emergency responders. More than 98 percent of security alarm activations are false, officials told the council at Tuesday's meeting.

Currently, there is no fee associated with a first false alarm. On the second false call, the fee is $122.20. On subsequent false alarms, the fee is upped to $244.50 and then $366.80.

But come January, the fee for the first false alarm will be $122.20. The second false call will cost $244.50 and the third $366.80.