City's Water Rate Model Still in Question

City Council approved the  Wednesday with an amendment that City staff analyze alternate water rate models before next year.

"We can decide as policy makers what a fair way for charging for water is if we just know what the options are," Councilmember Philip Putnam told City staff.

"It might take two years to implement it—which would mean collecting the parcel data and the number of people in these places. But if we decide to charge a flat rate, we don’t need to do that."

While a , not all council members were convinced that that tiered rate model was the best option for the City. 

Through the current system, rates are reduced for the lowest water users.

"If there's no incentive for 30 percent of people to conserve, the other 70 percent have to conserve [considerably] to make up for it," Putnam said in December 2010. 

Options Available

City Council urged City Staff Wednesday to provide examples of various water models implemented by other California cities before South Pasadena's

One model mentioned—and permitted by Government Code—was an automatic wholesale rate. This means water rates would be automatically adjusted to pass through any adopted increases or decreases in the wholesale charges set by the Upper San Gabriel Valley Municipal Water District. 

NREC member and Chair of the City's Water Council, Diana Mahmud, believes this type of system "actually meets what the water system needs." 

And, she said, "it would be very unusual for a wholesale rate increase to occur more than once a year."

Mayor Michael Cacciotti echoed Mahmud's concerns asking staff to look into the model, as well as a low income feature, which he said means "the rest of us might have to pay a little more." But insisted to City Staff: "give [City Council] something—so we can decide."

The Vote

Sewer rates passed 4-0 with all present Council members in favor. Water rates passed 3-1. 

(Council member Marina Khubesrain was absent from the meeting and attending a new councilmember conference.)

Frustrated with the lack of information provided, Putnam voted against the motion and amendment.

"What I envisioned happening—quite honestly—is we would have these models presented to us in the fall, and we could decide what we wanted to do," Putnam explained.

"We may not be able to avoid this next rate increase while we were implementing a different rate structure—but at least we would be working toward collecting the data this point in time," he continued. 

An increase of 14 percent in sewer rates and 18 percent in water rates is slated for April 2012. A public hearing on the matter is slated for March 7. 

Related: 

City Council Approves Tiered Water Rates

UPDATE: City Responds to Sewage Spills