Water And Sewer Rate Increases Appear Inevitable

San Diego Union Tribune

By Matthew Hall

February 23, 2007

It seems likely that San Diego's water and sewer rates will soon rise, as environmental and business leaders embraced the idea yesterday and a formal protest continued to fall far short of pre-empting a City Council vote.

Council President Scott Peters said the tiny protest tally is "some indication that people understand this investment is important and necessary.”

Peters said he expects the council to approve Mayor Jerry Sanders' proposal to increase the typical monthly residential utility bill by 35 percent, or $27, over the next four years to help finance rising operation and construction costs.

More than half of the city's 274,000 water customers would have to lodge formal protests by the end of Monday's public hearing for the proposal to be rebuffed automatically. As of yesterday, the City Clerk's Office had validated 6,700 protests and deemed invalid or set aside for questions 900 more.

City Clerk Liz Maland said it would be "really surprising” to receive an additional 130,000 protests by Monday afternoon after receiving so few the first six weeks of the state-mandated 45-day protest period.

Sanders stood with three environmental advocates yesterday in support of the higher rates at a news conference near a storm drain outfall on San Diego Bay. Two environmentalists, Bruce Reznik and Marco Gonzalez, the executive director and a lawyer for San Diego Coastkeeper respectively, have been negotiating a legal settlement with city officials to improve the sewer system and reduce spills.

The third, Jim Peugh of the San Diego Audubon Society, is a member of the city's Public Utilities Advisory Commission, which previously supported Sanders' proposal.

“I recognize the burden this puts on ratepayers,” Reznik said, “but if we want the city to have clean beaches and bays, this is the kind of investment in our sewer infrastructure we need.”

Also, the San Diego Regional Chamber of Commerce board of directors voted yesterday to support the water and sewer rate boosts. Health care executive Steve Francis, who finished third in the 2005 mayoral primary behind Sanders and Councilwoman Donna Frye, opposed raising the rates.

Yesterday, Francis came out against Sanders' proposal, calling it a tax increase. He said the mayor did not do enough to audit the water and sewer departments or describe how much of the higher rates would be dedicated to city pensions described by Francis as “lavish.”

Sanders won support from the business community and others by vowing, among other safeguards, to create an oversight board to replace one with little fiscal experience and to audit water and sewer funds each year. Today, Sanders is expected to hold another rate-related news conference with the San Diego County Taxpayers Association, which has opposed rate increases in the past but supports the mayor's proposal and protections.

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