Commercial water increases to go to court

By Danielle Seckler

   On Nov. 20, 2007, the City of Big Bear Lake was notified of an impending lawsuit regarding the commercial water increases recently enacted but the Department of Water and Power (DWP) and the approved by the City Council last summer. The lawsuit has been file on behalf of Jim Mc Lean, owner of Apples Bed & Breakfast, by his attorney in the Big Bear Superior Court.

   The DWP had a water master plan done, which gave them information regarding the current status of the water delivery system; which will need about $30 million dollars to upgrade. Another part of the water master plan included the possible future needs for possible growth and gave the board a 5-year plan on how to get the money needed to fix the system. Hearing the extent of the system’s current deficiency, the cost to improve the system for fire and regular service, and how a 5-year plan would place an extensive hardship on their customers, the board decided that they would implement water rate increases first to the commercial users and administrative fee increases. This was done last summer and the commercial users came out strongly against increases to their rates on several levels, while many residential users were in favor of the increases to businesses. The City Council, who must approve any ordinances or rate changes of the DWP, decided that a two-tiered increase would be placed into effect with the first increase to start in September 2007 and the second tier in September 2009.

   The heart of the lawsuit contends that the increase is unfair to commercial users on the basis that the DWP uses zoning codes to decided if a customer is commercial or residential user, that DWP revenue has been lost due to conservation efforts of its’ customers, and that residential customers use 22-times more than a business. Citing Proposition 218 and the 14th Amendment of the US Constitution (Equal Rights Amendment), the lawsuit wishes the court to decide on these issues, as it contends that all rates must be the same, since the delivery system and the cost of said service is the same to both categories of customers. The California Supreme Court deemed that water agencies and other similar governmental agencies must charge the cost of service and no profit can be made on such a service. In that ruling, it was not clear that an agency like the DWP can or can not have different categories of customers, such as commercial or residential.

   Since the creation of the Private Home Rentals (PHR) and its extensive growth within the last 15 years, many people have wondered about the zoning codes within the city limits. A PHR is a private home used for occupancy less than 30 days and is regulated, permitted, and inspected through the City. A PHR pays Transient Occupancy Tax (TOT) just like a motel or lodge does. In this lawsuit, it contends that an individual home is zoned as a resident and does not take into account that that home may be used as lodging for tourists and as a business. Therefore if a home is used as a business, then these homes should also be considered to commercial customer and pay the same water rates as a lodge.

   Bear Valley News spoke with the attorney of record and he stated that the lawsuit was filed in Big Bear Lake and he wants it to be handled in Big Bear. According to him, so far all the lawsuits filed against the City have been transferred to down the hill courts and he believes that the people who live in Big Bear should be able to see the trial first hand.

   The City has no comment on impending litigation.

   We encourage people to read the lawsuit submitted to the court, by clicking here.

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