Water Users’ Choice: Cutback or Penalty : Conservation: Newport Beach residents will cut consumption 20% from their average use from July, 1989, to June, 1990, or pay nearly triple the present rate.

In the second phase of a mandatory water conservation plan that could eventually lead to cutbacks of up to 40%, city consumers by Friday must cut consumption by one-fifth or face penalties that would nearly triple the base rate they pay.

Bob Dixon, Newport Beach’s utilities director, said residents will have to pay an additional $1.82 per 748 gallons of water, or one billing unit, after Friday if they exceed the 80% allotment. The fine would raise one billing unit from $1.05 to $2.87 per 748 gallons of water.

Residents will be required to reduce water use by 20% from their average use in the period from July, 1989, to June, 1990.

The average city household used 447 gallons of water a day last summer and paid about $38 for each two-month billing period. If that same household continued that rate of use, the bill would increase to $47.62. But the bill would drop to $30.24 with a 20%, or 89-gallon, reduction.

The city is following the lead of its sole supplier, the Metropolitan Water District, which is cutting supplies to its 27 water agencies to fight the effects of the five-year drought.

If the water conservation plan progresses to the third phase, consumers will be required to cut use by 25% by May 1. The fourth phase, effective next summer, would require mandatory conservation of 35% to 40% if implemented, Dixon said.

Earlier this week, Dixon told the City Council that the second phase had to begin sooner than expected because the persisting drought prompted the State Water Project to reduce supplies by more than 1 million acre-feet to the MWD.

In February, residents began cutting back 10% and were told to expect another 10% reduction by spring. But water consumption in Newport Beach averaged about 10% more last month than a year ago.

Next month, the council will look at more regulations, including restrictions on landscape watering, limiting new users and requiring use plans from businesses.