Newport considers doubling wastewater rate

Water bills in Newport Beach could be going up for business owners and homeowners under a proposal being weighed by the City Council Tuesday.

The proposal, which city staff is expected to present during a study session Tuesday, would nearly double wastewater rates for customers over the next five years. Homes and businesses that use water in Newport Beach are charged for wastewater removal and treatment, which includes sewage and water from sinks and showers, known as gray water, in their monthly or bi-monthly water bill.

In 2013, the city contracted with HF&H, an Irvine-based consulting firm, to have the firm study wastewater and recycled water rates. Based on the results of the study, the City Council decided in June 2014 to lower the cost of recycled water by about 50%.

However, the study indicated that the city may need to bulk up its fund for wastewater.

Over the next several years, the city will have to dip into reserve money to fund capital improvement projects such as the replacement of aging pipes and pump stations, according to a city staff report.

The projects are expected to deplete $900,000 that the city has in wastewater reserves by 2017.

“Current sewer rate revenue does not provide adequate funding for ongoing operations,” the staff report states.

If the council approves the rate hike, it would be the first increase seen by ratepayers in the past nine years, the staff report states.

Currently, a typical single family home pays about $9.75 per month for wastewater. The proposal to increase the rate structure would mean that the same home would pay $13.79 per month by the first year, $16.27 per month by the third year and $18.04 per month by the fifth year.

Wastewater rates for homes and businesses are comprised of a fixed fee, sewer charge and two additional surcharges of $2 per month for each additional house on the property and $10 per month for customers with larger water meters.

The staff proposal eliminates the surcharges and moves the cost to a monthly fixed price for sewer service based on the size of the water connection and sewer use charge, which is a monthly charge for all customers based on water use.

If the council indicates that it would like to move forward with a rate increase during the study session, the item will appear on a nighttime council agenda for a formal vote.

The study session begins at 4:30 p.m. Tuesday at 100 Civic Center Drive.