L.A. Sewer Fees Below Average, Study Shows

Hoping to blunt charges that Los Angeles sewer fees are excessive, the city issued a long-awaited study Thursday indicating it spends less to treat sewage than the average for public agencies.

But the study, co-funded by the Los Angeles Public Works Department, only fueled the debate over the perception that the agency is not operating efficiently, which critics believe has led to overcharging.

Los Angeles spends less, on the average, for maintenance and operation, but more on administration, a fact attributed to the city’s large bureaucracy, according to the study.

Sanitation Bureau director Judith Wilson said the multi-agency study shows some areas where costs can be cut, but should answer critics who allege wasteful or uncontrolled spending.

“I’m hoping they will realize we’re doing a good job of controlling our maintenance and operations costs,” Wilson said. “We’re below average, but we also have the most stringent permits of any agency in the study, so we do more with less.”

Los Angeles spends $697.22 to treat 1 million gallons of sewage, compared with an average of $791 for the other agencies studied. They are Oakland, Sacramento, Orange County, Contra Costa County, Portland and King County, Wash.

The Orange County Sanitation District spends $605 per million gallons of treated sewage, while other agencies ranged from $582 to $1,282, the study said.

Wilson said the study shows that cost-cutting moves are working and ratepayers should be confident that they are not being overcharged.

But City Councilman Joel Wachs renewed his calls for a management audit of the agency, which he believes will show $30 million or more can be saved.

“You can’t tell me there isn’t room for dramatic savings,” Wachs said.

Such an audit would compare the city with agencies nationwide, including private treatment operations, not just local public ones, because the private sector often does a better job, Wachs said.

“It’s then, when you do that kind of comparison, that you identify areas for dramatic savings,” Wachs said.

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Also unconvinced was Richard Fine, an attorney representing more than 100 residents who filed a class action lawsuit claiming the sewer fees are excessive. Fine’s lawsuit charged that the sewer fund is sitting on a $20-million surplus, even after giving $60 million away in recent years to the city general fund in the form of a franchise fee for running pipes under city streets.

“We aren’t satisfied,” he said. “They are charging [ratepayers] more than it costs to do the work.”

In particular, Fine said it was “outrageous” that 42% of the cost of treating sewage goes to administration. The average for the seven public utilities was 34%.