Council Scraps Penalty for Not Saving Water : Drought: Also gone is the tiered billing system that had increased some water bills as much as 400%.

Citing success in voluntary conservation efforts citywide, the San Diego City Council voted unanimously Monday to scrap drought-inspired penalties for those who did not cut their water use by 20%.

The decision was one of three the council made regarding water use and policy. Despite skepticism, the council approved an 18% increase in water rates forced on the city by the Metropolitan Water District.

The council also approved a return to a flat sewer rate for residential users after some citizens complained about a tiered billing system that, in some cases, had increased bills as much as 400% since July.

As she has for months, Mayor Maureen O’Connor praised residents for conserving water, noting that in the past four months, use has decreased by an average of 27% from last year, according to a city manager’s report.

People whose consumption habits have changed very little complained about steep rate increases, and many called for a more equitable billing system.

The demands were met with assurances that the city would not impose the costly water use penalties that were scheduled to have taken effect last Tuesday and that people would be rewarded for responding to conservation requests.

“The city has done one hell of a job saving water,” O’Connor said, “ . . . and everyone in this city deserves to be rewarded.”

Water bills will remain unchanged until January, without the threat of increases for those who fail to lower consumption, City Manager Jack McGrory said.

The proposed levies carried severe penalties. The average household user who did not meet the 20% conservation goal would have seen his water bill rise by 60%.

On the issue of sewer rates, the City Council voted, 6 to 2, to return to a flat fee structure of $19.24 for residential users. Both council members and private citizens criticized the tiered billing system, which was based on water use during the past winter.

Council members opposed to the tiered system said many households who consumed less water were paying more than households whose water use was high but lower than what the household had used the winter before.

“The perception, if not the reality, is that people are not being treated fairly,” Councilwoman Judy McCarty said before the council voted to scrap the tier payment structure. “I think it’s a lousy system.”

The council directed a citizen’s committee to study future rate increases based on water availability and sewer use. The committee, which was formed in August, was told to look at the costs of maintaining and improving municipal piping and storage sites.

In regard to the MWD, the council approved the 18% price increase effective Jan. 1 because it now costs more to buy water from the MWD, said Milon Mills Jr., director of the city Water Utilities Department.

In approving the increase, the City Council directed the city attorney’s office to challenge price increases by the MWD, the huge water supplier for five California counties. The council also called for an audit of the agency to verify the cost increase.

“We may have to take them to court,” said O’Connor, who charged that the MWD reneged on an agreement not to increase the city’s water costs if it conserved.