City Council Increases Water Rates, Approves $31M Project

Most Oceanside households will pay $6.72 more each month for water and sewer service next year.

The City Council voted 4-1 Wednesday night, with Esther Sanchez opposed, to raise both water and sewer rates effective Jan. 1.

In a meeting that lasted about five and a half hours, the council also approved a pawn-shop permit for a jewelry store on Coast Highway in downtown Oceanside and a $31-million hotel-residential project across the street from Oceanside High School.

The council also voted to lease 3,500 more feet of floor space to the Veterans Association of North County to retrain those mustered out of a downsizing military.

An additional short-term charge of about $7.60 a month could be levied Oceanside households to pay for a fine by the Regional Water Quality Control Board because a sewer line burst during storms in December of 2010 and raw sewage overflowed.

City officials are negotiating with the board to cut the $1.5-million fine in half.

That extra $7.60 would no longer be charged once the fine is paid, but it seemed that aspect of the increased charges bothered Sanchez the most.

On a bitterly divided governing body, Councilman Gary Felien wanted to call it the “Wood-Sanchez-Lowery Sewer Maintenance Negligence Fee” because both he and Councilman Jerry Kern said that Mayor Jim Wood, Sanchez and former Councilman Charles Lowery would not vote necessary repairs before the pipeline failed.

The water-rate increases, officials said, are dictated by fees the city must pay the County Water Authority and the Metropolitan Water District of Los Angeles for imported water.

Cari Dale, water utilities director, said Oceanside produces about 15 percent of its own water, primarily from treatment of underground water from the San Luis Rey River basin

The $6.72 figure combines a $4.01 hike in water rates and a $2.71 raise for sewers.

Water rates are based on an average use of 12 units (a unit is 748 gallons) by a single-family household and could be more or less, depending upon usage.

Sewer rates are gauged by water usage.

A new water bill, for 12 units, would be $62.84, up from $58.83, and a new sewer bill would be $56.76, up from $54.05. Total city revenue from water sales and service would be almost $51 million and from sewer service, almost $36 million.

The Hotel-Residential Project

The big project, seven stories at its tallest, across from Oceanside High school will cover a square block bound by Mission Avenue, Clementine Street, Seagaze Drive and Horne Street.

Shan Babick, associate planner, said the project, proposed by the Amidi Real Estate Group of Los Angeles, has been on his desk since May, 2004.

It has gone through several iterations, previously approved.

The latest project includes 124 hotel units and 90 work-live lofts as well as 8,357 square feet of office/retail space and 4,500 square-feet of meeting rooms.

Babick said it will provide both temporary construction and permanent jobs and will pay the city $600,000 yearly in room taxes, $500,000 in sales taxes and $300,000 in property taxes.

Some nearby residents, members of the Oceanside Coastal Neighborhood Association , sought more landscaping and expressed a concern about traffic and parking problems.

The developer said a free shuttle is planned from the building to all points within 1.5 miles.

Longtime local artist Ruth Jameson criticized the design, saying “we should not have something that looks like Plan B for a large commercial corporation.”

Instead, she offered an alternate sketch for the building, which she said “should look like Oceanside” and not Chicago.

But Sanchez declared the design “pretty fantastic,” and Feller said “I can not imagine anything else on this corner now after seeing this.”

Veterans Association of North County

Councilman Kern proposed leasing additional space to the Veterans Association of North County.

It already occupies 10,000 square feet of the former police station at 1617 Mission Ave., but the city kept the remaining 3.500 square feet of the building for its own use.

Chuck Atkinson, president of the veterans' association, said the additional space is needed for “career transition assistance” due to “the downsizing of our military” with more veterans needing to learn new skills for the civilian marketplace.

He also said the space could be used as meeting room for some of the veterans' organizations working within the association's umbrella.

The vote was unanimous.

Councilman Felien said “veterans are coming back from war to the worst economy ever. We have got to do whatever we can to help.”

“We have always recognized the importance of our veterans,” Sanchez said, adding “San Diego County is going to be hit hardest with our military returning. It is God's work to help our veterans make the transition.”

Kern gave the organization a personal check for $1,000 on behalf of his wife,

And he announced that at the council's next meeting, Nov. 7, the municipal airport will be named for the late Bob Maxwell, a Tuskegee Airman in World War II.

Oceanside Jewelers

The pawn shop at 222 N. Coast Highway will be part of Oceanside Jewelers.

Chad Coogan, owner of the store, said it's only fair for the council to give him what is called a collateral-loan permit since a competitor across the street has one.

His approval is conditioned on his promise that he will deal only in jewelry, watches, diamonds, gold, bullion and silver coins and that he will not accept pawned electronics, firearms or other objects.

Based on that assurance, Police Chief Frank McCoy dropped his objection to the permit.

McCoy said the city has had a 10 percent increase in crime, and he characterized downtown as “a high crime area.” In general, he said, pawn shops pose a problem.

Coogan said there will be no signage advertising his business as a pawn shop.

The vote was 4-1 with Councilman Jack Feller opposed. Feller said he was impressed with the number of “respected” local businesspeople who had spoken at the meeting in support of Coogan but he “would be going against my principles” to vote for the pawn.

Feller said when he came to Oceanside in 1968, downtown was full of massage parlors, pawnshops and tattoo parlors and it seems headed in the same direction.

 “We are just going backwards, I think, “ Feller said.

Mayor Wood also said he was concerned that this action to add a second pawn shop “to be fair” will lead to requests for a third and then a fourth such establishment. 

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