San Diego Council Votes 6-2 to End Tiered Water Rates After $40 Million Lawsuit

The San Diego City Council voted 6-2 on Tuesday to replace its tiered water rate structure with a single rate based solely on volume, complying with a court ruling the city does not agree with and settling a case that carries a $40 million price tag. The new structure takes effect in January, when a previously approved water rate increase also begins.

Under the tiered system, single-family customers who conserved water, for example through water-efficient landscaping, paid less per unit, while customers with large yards or pools paid more per unit. The lawsuit filed in 2015 challenged that structure. The city fought the ruling, including taking the final decision to an appeals court, but was unsuccessful. San Diego is now responsible for a $40 million settlement.

City estimates place the monthly impact at about $6 more for a low-use single-family customer and $20 less for a high-use customer. A city representative acknowledged that even a modest increase could affect households that have worked to conserve water. A staff member who presented the item to council members said the city does not agree with the court's decision in the Daniel Patz et al. v. City of San Diego case but is legally required to have a structure the court deems valid.

Council member Sean Elo-Rivera, who represents district 9, voiced frustration during Tuesday's meeting. "It makes me angry because what is being imposed on us as a city and, therefore imposed, on the people of San Diego is a penalty for doing more to conserve water," he said.

Resident Isabel Jordan described changing her own view on the pricing structure. "I mean we're in Southern California. We're in a water crisis, water shortage constantly, in and out of drought, so at first I was like, 'oh, everyone should pay the same rate,' then I kind of understand the incentive behind subsidizing more efficient consumers of water," Jordan said.

The city expects low-use customers to face the biggest monthly price changes under the new structure.