Council Refuses to Approve 11% Water Rate Hike : Services: DWP asked to submit proposal for more modest increase. Council members reluctant to raise costs while asking public to continue conservation efforts.

The Los Angeles City Council on Wednesday rejected a proposed 11% increase in water rates after council members declared it politically impossible to charge more while residents are being asked to conserve.

In a heated 1 1/2-hour debate, the council also cited a worsening local economy and climbing unemployment rate in its decision to send the revenue-raising proposal back to the Department of Water and Power commissioners.

DWP commissioners were asked to return Friday with a proposal that would limit the rate hike to less than 7%. The commission has scheduled an emergency session for 8:30 a.m. Friday and plans to have a new proposal ready for council consideration that morning, according to commission President Mike Gage.

Even with a more modest rate increase, the DWP will have to slash key construction projects, including plans to clean up San Fernando Valley ground water and make greater use of reclaimed water, DWP officials said.

As maintenance and other projects are delayed, scaled back or eliminated, neighborhoods around the city will increasingly suffer from low water pressure, dirty or clouded water and main breaks that will cause service interruptions, the officials predicted.

It also means that highly successful conservation programs--which include subsidies for low-flow toilets, free water-saving shower heads and a cadre of conservation enforcement officers--will have to be downsized. This comes even as some water officials are warning about the possibility of a sixth year of drought.

The 11% water rate increase would have raised about $23 million, far less than the $98 million need to plug a deficit caused by a 30% drop in water sales brought on by conservation efforts.

In addition, the DWP has cut more than $45 million from its budget and instituted a hiring freeze that has eliminated 170 jobs. Any further cuts would require layoffs or breaking existing contracts, officials said.

Councilwoman Ruth Galanter warned her colleagues that further delays of capital programs could do irreparable harm to the city’s water quality and delivery. “We cannot afford in the city of Los Angeles to have a water system that is not reliable and as efficient as possible,” Galanter said.

Councilman Nate Holden countered that “the council is being responsive to its constituency, as it should,” in holding the line on water rates.

But Galanter charged that her colleagues were looking only for short-term political gains and not the long-term good of the city. “I find this discussion absolutely appalling,” she said.

The agency is facing a difficult dilemma: Most of the expense of operating the city-owned aqueduct, pipe and pumping system is fixed--regardless of how much water comes down through the system. With less water available, because of the drought, each gallon of water must cost more to cover the fixed costs, officials said.

Some critics contend that rate increases could be avoided if the DWP would cut unnecessary spending, including eliminating $150,000 on a single public relations consultant, $435,000 in professional memberships and reducing wages. However, most of those solutions fall far short of resolving the multimillion-dollar deficit.

Jim Wickser, DWP assistant general manager for water, said even with a 7% rate hike, the department would have to cut an additional $65 million in construction and maintenance projects from next year’s budget. Among them:

* Renovation and upgrading of the Los Angeles Reservoir and filtration plant. Deferral would mean “some areas will continue to have taste and odor problems,” Wickser said. Communities that would be hardest hit include the San Fernando Valley, West Los Angeles and Hollywood.

* Cement lining of old pipes. Deferring repairs of corroded pipe would mean increasing problems with low pressure and rusty-colored water--particularly in the San Fernando Valley, Mid-City and South-Central.

* Pump tank repairs. Dozens of minor projects to improve operations at pump stations around the city would be delayed, leading to an increase in breakdowns and service outages, Wickser said. This would primarily affect Santa Monica Mountain communities, Sunland Tujunga and San Pedro.

* Reservoir covering. The department has been attempting to solve contamination problems at open inner-city reservoirs--such as Lake Hollywood, Rowena and Silver Lake--with additional filtration. “If we don’t get the type of funding we need,” said Wickser, “we’ll have to tell the constituents and council that we have to do this cheap and dirty.” That means covering the reservoirs, he said, a solution heavily opposed by area residents.

* Holding tanks. Scheduled installation of new holding tanks--which provide standby water supplies in case of earthquake or fire--in Highland Park and San Pedro would be deferred indefinitely. That could hamper firefighting and lead to cloudy water during peak use times such as the summer season, Wickser said.

“If we continue down this path for too long, it can mean an undermining of the infrastructure, of the integrity of the system,” Gage said.

Budget cuts already are affecting staffing in myriad ways.

Dan Mirisola, a line mechanic and the only DWP staffer to repair street lights at night, for instance, is being reassigned to the day shift because of staff consolidation.

Mirisola said he repairs about 300 lights a night. “The job was created (five years ago) because there was a need,” said Mirisola, noting that 20% of the requests for repairs come from the City Council offices and the mayor. “Who’s going to fix the lights now?” he asked.