City wants to raise your sewer rates over 10 years

The Laguna Beach City Council on Tuesday unanimously supported raising customers’ sewer bills each of the next 10 years to help repair aging pipes and create a reserve to pull from in emergencies.

Under the proposal, the city would charge residents 4.75% more each of the next four years and up to 4% more beginning in the fifth year in an area between Nyes Place and the northern city limits. The South Coast Water District serves the area south of Nyes Place.

The city’s sewer system includes 90 miles of pipeline and 25 lift stations, which officials say are in need of improvements and repairs to process 2 million gallons of sewage each day.

Laguna’s hilly topography creates challenges for pumping sewage through the system, Water Quality Director David Shissler said. In the last seven years the city spent $3.7 million in emergency repairs.

“More than a decade ago the system had deteriorated due to age and extensive root intrusion that was clogging the collection pipes,” a city report said. “Numerous sewage spills resulted in beach closures and contamination of ocean waters.”

The city charges single-family homeowners $48.42 per month for sewer service, which includes treating waste at a plant it co-owns with the South Orange County Wastewater Authority in Aliso Canyon.

A ratepayer’s cost would increase by $2.33 to $50.75 per month in fiscal year 2015-16, and by $2.42 to $53.17 per month in 2016-17.

Rate increases are not final. The public has an opportunity to comment and/or protest the proposed changes.

The city will mail notices to each of 8,538 property owners in its service area.

Protest letters must be submitted by June 10, and the council will hold a public hearing June 16 to discuss the proposed rates, according to the staff report. If more than 50% of property owners protest, the rates will not increase.

The council also authorized the city to borrow $10 million from the California Infrastructure and Economic Development Bank to help cover potential costs that include inserting new plastic pipes inside existing larger pipes to prolong lifespan and prevent roots from clogging the system.

The state created the bank in 1994 to finance public infrastructure and private development projects, according to its website. The loan has a low interest rate and allows the city to draw funds only when needed compared to a lump-sum loan, the report says.

The city last raised sewer rates in 2012, when customers saw 3.5% per year increases.