Consulting Firm Studying City’s Water Rates

A consulting firm is studying the city’s water rate structure to determine whether charging all residents a base rate of $17.70 every two months, regardless of the amount of water they use, is fair.

Residents in condominiums may use much less water than homeowners who need water for landscaping, said Public Works Director Harry W. Thomas.

The council voted to hire Hilton Farnkopf & Hobson in Fremont for $25,000 to analyze the water system, the various groups of water users and various cost factors for each.

A majority of council members agreed that Proposition 218, passed in November, makes it important that the city can show that it charges customers according to how much they use.

“I read this as an equity issue,” said Councilman Dan Slater. “I think this water rate structure should be done so residents are treated equitably.”

But Councilman Mike Spurgeon, who voted against the contract, said it is a back-door way of increasing water rates.

“I’m having difficulty spending $25,000 to find innovative ways to raise the water rates for certain residents,” he said.

The council, however, added an addendum to the contract directing the firm to keep in mind that Orange is a conservative city and council members do not want to raise water rates in general.

City Manager David L. Rudat said the city now has some of the lowest water rates in the county.

Councilman Mark Murphy also voted against the contract, saying he thought the city staff could investigate the issue.