Suit seeks refunds for non-resident Pasadena water customers

The Howard Jarvis Taxpayers Association has filed a class action suit against the city of Pasadena, saying that nonresident Pasadena water customers are charged 25 percent more without justification, and demanding that the city refund the money.

According to a press release from the association, Pasadena Water and Power, a city department, also provides water to areas outside of the city (including parts of Altadena).  The 25 percent surcharge for non-residents “is not justified by a 25% greater cost to the City in providing water service to nonresidents, but is an arbitrary mark-up imposed on nonresidents” the press release said. “These ratepayers, because they cannot vote in city elections, are an easy target for the city to subsidize the water rates and charges paid by city residents.”

The release also says:

In addition to the 25% surcharge on nonresidents, the City charges all of its customers approximately 6.5% more than is necessary to cover water-related costs, in order to generate an annual surplus that it transfers to the General Fund to help balance the City’s budget for things like police and fire protection.

The Jarvis lawsuit also challenges this annual transfer of revenue from the Water Fund to the General Fund as unfair to nonresidents because the City of Pasadena is not their provider of police, fire, or other municipal services.

Jon Coupal, President of the Jarvis organization, commented on the timing of the case. “California’s drought has literally dried up inexpensive sources of water,” he said. “As agencies turn to more expensive sources, people’s water bills increase. Water is not something people can choose to give up when it becomes too expensive. With seniors and low income families struggling to pay their bills, no agency should be gouging them with unnecessary mark-ups.”

The lawsuit asks the court to declare Pasadena’s rate structure invalid, and to award refunds to its nonresident customers. The City has 30 days to file an answer or otherwise respond to the suit.

A southeast Altadena resident who is served by PWP told AltadenaPoint in an email that is grassy three-quarter acre house, with teenagers, runs a bill of about $1,800 a year.  Since he’s been living in the house for ten years, he wrote that he’s “looking forward to a $4,500 refund.”