Water rates to rise in Glendale

The Glendale City Council reluctantly endorsed a water rate increase to deal with what city staff characterized as a “crisis” situation in the city’s utility.

City Manager James Starbird apologized to the council for management failure to address the problem before. He said previous councils had chosen not to pursue needed upgrades in the past.

After a full dress presentation by DWP staff about the need to raise some $220 million over the next 20 years, Councilman John Drayman said there could be a perception that some “salesmanship” was going on. However, he promised the third vote to bring the rate measure back for a final vote next week.

Interim general manager Dan Waters and water services manager Pete Kavounas presented the issue.

The rate increases, one a year for the next three years, are intended to provide a revenue stream to pay for three proposed bond issues, and to replenish the water reserve fund.

The city considers the average residential water bill to be about $55 a month. That bill would go up $2.61 in January, another $4.16 in January of 2009, and $3.92 more in January of 2010.

Projects include a backup pipeline for the Diederich Reservoir; restoration of the Chevy Chase Reservoir; upgrades to the distribution system across the city; two new groundwater wells, and water quality upgrades.

Public speakers criticized the increases as excessive and ill-timed, especially for lower income residents, and criticized the city’s yearly transfer of money to the general fund.

Waters said GWP hasn’t raised rates in five years, unlike other utilities.

As for the transfers to the general fund, Starbird said this is done under a charter amendment approved by voters, and represents the utility’s contribution to the overhead of city management.

He said the total transfer this year was $20 million from water and power, out of the city’s $160 million general fund.