Story Created:
Aug 19, 2010 at 12:23 PM PST
Story Updated:
Aug 19, 2010 at 4:01 PM PST
HUNTINGTON PARK — The City Council has sent plans for a water and sewer rate increase back to the drawing board after residents at a public hearing Aug. 2 complained that many people would be harmed financially because of the bad economy and unemployment.
Under a proposal by financial consultants Bartle Wells Associates, water and sewer rate increases of 13 percent each year for five years are needed to pay for an estimated $11.2 million in water main and sewer upgrades.
But Mayor John Noguez said that plan would result in an overall increase of about 85 percent, which he said was too much.
Council agreed and directed city staff to come back with a list of priorities for upgrading the 50-year-old pipes.
No date was set for the revised rates.
The council also questioned the figures presented by Bartle Wells President Doug Dove, who said the average homeowner in Huntington Park paid about $35 a month.
Several residents said they were paying more than $100 every two months for households with only three or four people.
About 20 people protested at the meeting.
“Improvements are needed but the quotes are pretty steep. A lot of things are mixed up,” Councilwoman Elba Guerrero said.
Officials also said the report was too confusing.
“Make it simple,” Councilwoman Ofelia Hernandez said.
Dove justified the proposed increases to the 5,500 city customers, noting that water rates were last raised in 2007 and sewer rates were raised in 2005. The cost of water from outside sources has gone up significantly since then, he said.
Improvements needed in the next five years are $1.2 million for wells, $1.6 million for water mains, $3 million for tanks and reservoirs, $1.3 million for electrical upgrades and $3.4 million for miscellaneous items.
Dove said water supply costs are expected to rise from about $1.72 million this year to $2.77 million in 2015.
He said the average family now pays $35 a month. That would go up to $65 a month for water alone by 2015.
In other action Aug. 2, the City Council approved an agreement with Clear Wireless to lease space for a communications antenna on the Miles Street/ Slauson Avenue water tank in the municipal yard for $900 a month plus a one-time payment of $10,000 for administrative, legal and inspection fees.
The lease payment will increase by four percent each year for five years, said Public Works Director Pat Fu.
A second wireless company, T-Mobile, also leases space from the city on the water tank and has ground space for equipment. Clearwireless will lease ground space from T-Mobile, Fu said.
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