South Coast Water District’s Water, Sewer Rates Increase

BY BREEANA GREENBERG

South Coast Water District (SCWD) ratepayers were expected to see an average increase of 7% in their water rates and a 12% average increase in their sewer rates starting on July 1, following a governing board vote on June 22.

On average, starting July 1, residents may see a $5.79 increase in their water bills and an $8.99 increase in their sewer bills, according to South Coast Water.

After holding three public workshops on water, recycled water and sewer-rate studies and conducting a revenue-needs analysis, the district concluded the rate had a real estate contractor come to see me one day, and he says, ‘Joe, Pacific Mutual (Life Insurance Co.) just bought all this land out here (in Lantern Bay) … and they’re looking for a broker, because they want to develop it,’ ” said Lovullo.

Armed only with a clipboard and small office with a desk and a phone, Lovullo went to an interview to be the exclusive broker for the Lantern Bay Villas, competing against larger companies.

Lovullo’s understanding of the ins and outs of Dana Point got him the job, a testament to the importance of knowing the local community.

The million-dollar project in Lantern Bay, just above Dana Point Harbor, was a huge win for Lovullo. After the sale of the development, he got to keep the name of Lantern Bay. Over the years, Lantern Bay Realty has also been the exclusive broker for Lantern Bay Estates, Harbor Walk in Capistrano Beach, and Pacific Terrace along Pacific Coast Highway.

Now a well-established company, the real estate agency covers a wide variety of services such as residential and commercial sales, leasing, property management and investment counseling. The diversification of residential and commercial keeps the company on top of any market ripples.

“So, it’s really not only where people live but where people do their business,” said Mike Lovullo, Joe Lovullo’s son. “It’s restaurant, retail, offices, medical, dental. Just about anything that has to do with buying, selling, or managing property is what we do.”

Working at the company since 1988 and taking over the helm of the compa- increase is necessary to provide “financial stability and funding reserves,” according to a SCWD staff report.

In a prepared statement, SCWD said the rate increases are the result of “implementation of critical capital improvement projects, meeting our debt service convergence to maintain our credit rating, and maintaining our reserves to meet the District’s targets.”

“Additionally, the costs for construction, materials, treatment, and testing are rising across the State due to inflation, supply chain issues and other critical factors,” SCWD said in the statement.

About 90% of South Coast’s water is imported from the Metropolitan Water District (MWD), which has increased its rates for fiscal years 2024 through 2026. Rates will increase by 5% in FY24; 7% in FY25; and 6% in FY26, according to the statement. SCWD pointed to MWD’s rate increase as one of the reasons for ny in the 2010s, the younger Lovullo is now Lantern Bay Realty’s chief broker and president.

Both Mike Lovullo and Lantern Bay Realty Vice President Tim Johnson grew up in San Clemente and graduated from San Clemente High. Mike and Tim are both involved in the community, whether that’s working with the Chamber of Commerce, managing the Dana Point Community House, or curating concert series through the organization Lord of the Strings.

Their long history in Southern California has guided Lantern Bay Realty’s business model, as it allowed them to establish meaningful connections.

“After 50 years of (Lantern Bay Realty) being here, thanks to Joe starting the business, we enjoy a large amount of repeat and referral business due to our reputation,” said Johnson.

The heads of the company emphasized referrals and their reputation as their keys to success in the past 50 years. A large part of this reputation is putting people over profit.

“Our core values are putting the customer first and always being trustworthy,” said Mike.

“When somebody has a problem, we’re on it immediately,” Johnson added. “We don’t waste any time.” its increase.

In the 50 years Lantern Bay Realty has been in business, Dana Point has drastically changed. Once a quiet surf town, Dana Point is now a bustling city.

Like every industry, such a change in pace comes with its challenges. One of those challenges is keeping up with the constantly changing real estate and taxation laws of the area, such as the tenant protection act that went into effect during the COVID-19 pandemic.

SCWD attributed capital projects and aging systems including pipelines, pump stations, sewer tunnel and sewage lift stations as some of the reasons for the sewage rate increase.

In Fiscal Year 2025, residents may expect an additional $6.20 increase in water bills and a $10.07 increase in sewer bills. The following fiscal year, residents may see an additional $5.68 increase in their water bills and a $9.40 increase in their sewer bills.

In a prepared statement, SCWD noted that it is “mindful about the need to support members of our community who are impacted by these rate increases and are actively evaluating the needs and opportunities to support customers experiencing financial challenges.”

More information on resources that SCWD offers customers to assist in paying service bills can be found at scwd.org/resources.

But with people increasingly moving to the beach towns and city hubs of Orange County, the real estate market and investment have only grown with it.

Dana Point itself has grown as restaurants and residential areas continue to be developed.

“All of it is good for business,” said Mike. “More activity, more people wanting to move here … even the single-families people are upgrading and expanding.”

An aspect of the business that’s contributed to its longevity, they agreed, is their face-to-face meaningful interaction with customers.

After the pandemic, Mike said, some real estate companies turned away from customer interaction and favored the virtual, with customers sometimes never dealing with anyone directly. This is something Mike doesn’t see Lantern Bay Realty doing any time soon.

“I still think that, you know, personal contact, personal touch is so important in this business,” said Mike. “I think people still want to deal with people.”

Joe Lovullo said he built his long-lasting company based on the value of respect—something, he adds, also guides his personal life as a father of four children and husband of 63 years. This value and his positive impact in the local community have contributed to Lantern Bay Realty’s success, a legacy carried on by his son and Johnson. Giving advice to aspiring professionals in the real estate industry, Mike stressed perseverance.

“Don’t get discouraged, and just keep going,” said Mike. “As long as you put your customers first and are willing to learn and keep learning, you’ll be fine.”