L.A. Could Save $20 Million in Sewer Costs, Study Says

Los Angeles could eliminate at least $20 million from its annual sewer budget by reducing wasteful practices, a saving that could hold down planned rate increases, according to a study being prepared for the City Council.

The study, which compares Los Angeles operations with those of other large U.S. cities, was ordered a year ago by the City Council after a group of San Fernando Valley residents sued the city, claiming sewer service fees are excessive.

“It is just proof of what we have claimed all along, that the system is bloated and wasteful and costing the ratepayers more than it should be,” said Councilman Joel Wachs, who led the effort to fund the $497,000 study.

In a comparison of the 20 sewer systems nationwide that serve more than a million customers, Los Angeles was ranked ninth in efficiency. Los Angeles has improved from a ranking of 15th in 1996, according to Myron Olstein, who wrote the study for Black & Veatch, a consulting firm.

The comparison weighed four factors: operation and maintenance costs, staff levels, average bills and overall system costs.

“There is still room for improvement,” Olstein said.

Sewer costs have been controversial for years. Residents of the San Fernando Valley complain that they are charged too much because the rate is based on water use. Because many Valley lots are larger and require more irrigation, these residents pay higher fees although their sewage use is no greater than that of other customers.

City officials and the study’s author outlined its results in interviews. They would not release the document because it has not been presented to the City Council.

The study found that Los Angeles lags behind other cities in automation of treatment plants. The Sanitation Bureau has just hired a consultant to draft an automation master plan.

The study also found that Los Angeles is spending about twice as much as the average for energy to treat its sewage.

Any new efficiencies would be on top of $20 million in budget cuts approved by the city during the last three years, officials said.

The study will put additional pressure on the Sanitation Bureau as it considers a rate increase for 2002 to help pay for a $600-million program to replace crumbling sewer mains throughout the city.

Wilson said the city has not raised sewer service fees since 1992; a survey of other major cities found that they have averaged yearly increases of 4.5%.

Sanitation Bureau officials said they will consider a sewer rate increase of about 5% for 2002.