Water Rates to Rise

Starting July 22, residents and business owners will see an increase in their water bills. Prices will go up 15 percent on average for Beverly Hills residential consumers during each of the next two fiscal years, said Shana Epstein, the city's environmental utilities manager.

The City Council unanimously approved the rate hikes at its June 3 meeting to offset a price increase that supplier Metropolitan Water District of Southern California (MWD) is charging the city.

MWD had increased its rates approximately 99 percent from 1992 to 2006, Epstein said. During the same period, the city increased its water rates only 60 percent and soaked up the additional fees, she said.

"We are just trying to recover the costs that we have," Mayor Jimmy Delshad said during the meeting.

Water rates are based on a four-tiered pricing structure. Those who comprise the first two tiers—about half of the city's households— will see their bills rise less than 15 percent average, Epstein said. But larger households that fall under the third and fourth tiers will see a increase greater than 15 percent.

"The reason for progressively expensive rates is to encourage conservation," Councilman John Mirisch explained at the meeting.

Some residents came to the meeting to voice their dislike for the four-tiered system.

"Although the tiered structure is promoted as a water conservation program, in fact it is not," Beverly Hills resident Michael Dubelko told the council. Dubelko lives on single-family home lot and does not qualify for tiers one or two. "Those on larger lots or those with families pay substantially higher rates."

When the city added a fourth tier to its water pricing system five years ago, the top 20 percent of its residential consumers were forced to pay the highest rate for the utility service, Epstein said.

To qualify for the fourth tier, a household has to use upward of about 90,000 gallons of water over a two-month span, she explained.

"There is no amount of conservation I can do to make it in the tier one or tier two range, while smaller houses have to do nothing," Dubelko said. "I'm asking that the City Council intervene to end the tier structure that unfairly penalizes families."

The council members disagreed with Dubelko's stance.

"People should know that this is a fair share rate structure," Vice Mayor Barry Brucker said. "While it's different for us all, it is something that's more appropriate."

The city does not categorize rates for commercial venues like it does for households, despite differing levels of water usage among local businesses. The flat fee for businesses falls between the second and third residential tiers, according to Epstein.

"If you use twice as much water, you should pay twice as much and not six times as much," said Dubelko, who recommended that the city apply a flat rate for residential water usage as well.

The city is also exploring other sources of water in an effort to slow down the increase in water rates. One proposal calls for the city to build groundwater wells. But according to Epstein, "Local groundwater, for us at this time, is not cheaper than MWD water," she told the council members.

"It may not be cheaper today, but it may be an opportunity for tomorrow," Brucker said.