Newport Beach to repay customers who overpaid for reclaimed water

Two Newport Beach country clubs, a school district and a church that said they had been overcharged for recycled water will receive more than $433,000 in refunds.

Under settlements approved by council members Tuesday, the city will pay $222,770 to Big Canyon Country Club, $190,179 to Newport Beach Country Club and $7,769 to Our Lady Queen of Angels Catholic Church. Newport-Mesa Unified School District will be reimbursed $12,395 for recycled water use at Eastbluff Elementary School.

The council approved the agreements on a 6-0 vote.

Big Canyon alleged in a claim filed in March that it was overcharged from 2011 to 2014 while Newport Beach was conducting a study that led to a decrease in water rates last year.

Recycled water — also known as reclaimed water — is treated wastewater used for landscape irrigation at parks, school fields, roadway medians and places with expansive greenery, such as golf courses. The water, which should not be consumed, is used in order to conserve drinking water.

Newport-Mesa Unified, Newport Beach Country Club and Our Lady Queen of Angels were granted refunds after Big Canyon submitted its claim, according to City Atty. Aaron Harp.

“The city reimbursed all of the parties that overpaid for recycled water pursuant to the same formula,” Harp said.

A 2014 staff report said the city was the only other recycled-water customer at the time.

Big Canyon requested in July 2011 that the city conduct an analysis of the cost to provide and transport recycled water to the country club. That effort took about three years and resulted in Newport Beach reducing the price of recycled water by about 50%, according to the claim.

The claim stated that under Proposition 218 — also known as the Right to Vote on Taxes Act — “the city is restricted from charging more for goods and services it provides than what those goods and services cost.”

hannah.fry@latimes.com

Hannah Fry writes for Times Community News

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