Staff to study rate hikes in search of some answers
CITY HALL — Santa Monicans can expect to pay more utility fees as early as July, and City Hall officials expect to explain to them why.
The first part of a series of expected utility rate increases were approved at Tuesday’s City Council meeting after elected officials — expressing concern how the rate changes were proposed — directed staff to undertake a serious study that will explain the costs of City Hall’s solid and water waste services in coming months.
City Hall’s solid waste, water, wastewater and stormwater fund balances have been decreasing by varying degrees over the last four years and need to be corrected in order to keep the bonds that support the funds in legal compliance.
In order to begin restoring the funds to a healthy level, the City Council adopted a rate schedule that will increase the cost of water rates by 6 percent and solid waste rates by 10 percent citywide beginning in July.
The rate increase means water bills for single-family residences in Santa Monica, which average $52.09 per month, will bump up to $55.22. The average cost of a water bill for a 10-unit apartment building will increase from $153.67 to $162.89, and for a medium-sized restaurant the rates will go from $1,235.66 to $1,309.80.
The rate increase means trash bills for single-family residences in Santa Monica, which average $62, will increase to $68.20. The average cost of a trash bill for a multi-family complex will increase from $120 to $132, and for commercial trash — $157 to $172.70.
The new rates will be in effect for at least this year. Staff and consultants will evaluate the costs and revenues for services that have resulted in the city’s utility funds — which are expected to be depleted by as much as $20 million in the near future — if the rate changes had not been put into effect, city officials said.
“You’ve put me in what I would call an almost untenable position (to increase the rates), without knowing what happened to the capital,” said City Councilman Bobby Shriver to staff.
Shriver explained to the public how he had received several notices from local business interests, which questioned the utility hikes and claimed that City Hall had adequately addressed the issue.
“I’m told (this business group) might have interest in taking over some of the city’s functions, but I believe their questions have to be part of any analysis,” Shriver said. “It bothers me we don’t have the answers.”
Some of the information came from Sam Chandler, a consultant based out of Tucson, Ariz., who has more than 17 years in the refuse business.
Chandler is associated with San Kardashian, owner of the privately-held Southern California Disposal Company located in Santa Monica, a group which argues City Hall may have been doing a disservice to the public by not fully disclosing information associated with disposal costs, which could be used to improve service.
Chandler said he and his associates were optimistic by the steps taken by the council and promised by city staff.
“The most important thing to know is where the city stands, and we’ll know that now,” Chandler said. “It’s a step in the right direction.”
In addition to the rate studies, City Manager Susan McCarthy said the council should consider appointing members to a committee which will help oversee the study, as well as other upcoming issues related to City Hall’s utility services.
“It was an excellent compromise the city manager probably came up with to bring the parties together,” Chandler said. “She proved how quickly the city can adapt, and it may need to, in order to grapple with Santa Monica’s needs.”
City Hall is expected to develop its refuse study plans and present its suggestions to council later this summer.
Originally published in the Santa Monica Daily Press print edition on June 23, 2005. Read the original PDF.