The Lomita City Council held a public hearing on February 11, 2015 and approved a new 5 year rate structure for its water service.
REASONS FOR THE RATE INCREASE
The mission of the City’s water system is to continue to provide reliable, high quality and cost effective water service to its current and future customers.
- The cost to purchase imported water from West Basin Municipal Water District continues to rise.
- CIP funding is needed to rehabilitate/replace water meters, fire hydrants, mains and associated facilities.
- While Operation & Maintenance (O & M) costs continue to creep higher, the City’s ability to pump a portion of its own water from its city well (Well No. 5) have offset what would have been significantly higher increases if the City were 100% reliant on imported water from West Basin Municipal Water District.
The current water master plan includes recommendations for improvements to the operation and maintenance (O & M) program, capital improvement program (CIP) and development of a financing mechanism to implement the improvements.
BASIS OF ADOPTED RATES
State law allows for the collection of additional revenues to cover the cost of providing water service subject to noticing and a majority protest hearing (commonly referred to as a Proposition 218 hearing). Costs included in the rates are electricity, equipment, personnel, supplies, etc. Without a rate increase, the City’s Water Fund will eventually run a deficit balance. The proposed rates will allow the City’s water utility to continue operation while providing essential services to its ratepayers. The proposed rates are proportional to the cost of providing the service and revenues from the rates do not exceed the City’s costs, as set forth in the City’s Final Report – Water Rate Analysis, available by at the link above or in the Lomita City Clerk’s office at 24300 Narbonne Avenue, Lomita, CA 90717.
APPROVED WATER RATE INCREASES
The rate structure approved in 2015 is implemented over a five-year period beginning in March 2015 with the final rate increase occurring on July 1, 2019. The structure for residential accounts consists of: 1) a fixed bi-monthly water meter charge (Table 1) and 2) a variable bi-monthly water usage charge based on metered water use (Table 2). The structure for non-residential accounts consists of: 1) a fixed bi-monthly water meter charge (Table 1) and 2) a single tier bi-monthly water usage charge based on metered water use (Table 2).
Table 1 – Fixed Meter Charge
|Fixed Meter Charge ($/month)|
|Meter||Effective 7/1/17||Effective 7/1/18||Effective 7/1/19|
|5/8″ x 3/4″||42.90||46.78||50.31|
|3/4″ x 1″||57.20||62.38||67.08|
Table 2 – Residential and Non-Residential Variable Bi-Monthly Commodity Charge per HCF
|Commodity Charge ($/HCF)|
|Tier||Effective 7/1/17||Effective 7/1/18||Effective 7/1/19|
|Tier 1 (0-20 HCF)||4.12||4.43||4.79|
|Tier 2 (21-35 HCF)||4.24||4.56||4.94|
|Tier 3 (>35 HCF)||4.82||5.18||5.61|
1 HCF = 748 gallons of water
The meter charge is a fixed charge established on the basis of the size of the water meter serving a property. The purpose is to recover a portion of the City’s fixed costs, such as the costs of billing and collections and customer service. The proposed commodity water charge has a uniform rate per hundred cubic feet (HCF) of water usage individualized for each class of customer and is based on customer consumption for a billing period. The commodity charge is structured to include a portion of the utility’s fixed cost of the utility, pumping water, a portion of the water rights, cost to purchase imported water, managing the City’s water resources and encouraging efficient water use. The commodity water charge recovers revenue intended to cover costs not recovered in the meter charge. Together, the two components of the City’s water service fees are structured to recover the proportionate costs of providing water service to each customer class.
HOW TO CALCULATE YOUR BILL
Typical Single Family Residential Water User (Bi-Monthly Bill)
|Meter Charge (3/4″)||Commodity Charge* (20 HCF)||Total – Bi-Monthly Bill|
* Typical user at 20 HCF consumption for the two month period.
Final Report on the Water Rate Analysis (December 2014)
Resolution 2015-09 adopting new water rates (adopted February 11, 2015). The rate resolution can be found here.
Notice of Public Hearing on February 11, 2015 regarding water rate increases.
If you have questions, please contact the Public Works Department at (310) 325-7110.