While many well owners say they plan to protest Santa Clara
Valley Water District’s groundwater fees this year, the city’s
staff has advised the City Council not to do so.
While many well owners say they plan to protest Santa Clara Valley Water District’s groundwater fees this year, the city’s staff has advised the City Council not to do so.
The council will provide input to staff regarding the what to do with its nine wells when it meets on Monday.
“It’s a complicated issue,” Councilman Perry Woodward said this week.
On one hand, Woodward has been a longtime critic of the water district, and he believes it needs to cut its costs, he said.
On the other hand, a staff report from City Engineer Rick Smelser indicates that the city’s groundwater must be manually recharged to keep up with demand, and the water district operates the conveyance systems and water quality programs to make that possible. If enough well owners oppose the groundwater production charge, it could result in decreased water reliability for the city, Smelser’s report said.
“I can’t make a decision that actually culminates in not having water for my constituents,” Woodward said.
All well owners within the Santa Clara Valley Water District have the option of protesting the district’s water fees this year following a Superior Court judge’s November decision that determined the district was illegally collecting groundwater fees, a violation of Proposition 218.
The proposition requires the district to send out notices outlining the protest process. A majority vote of collected letters would mean groundwater charges will be void for the fiscal year beginning July 1, and the district would lose out on $70 million in charges.
If that were to happen, the city’s ability to manually recharge its aquifer as well as other groundwater services provided by the district would be jeopardized, according to Smelser’s staff report. The district manually recharges about two-thirds of the total water pumped from the ground in Gilroy, the report said.
When considering the issue, Woodward said he must balance the scientific needs of the city with politics surrounding the water district. He believes the water district needs to implement reforms by cutting costs, but he also does not want to jeopardize Gilroy’s water supply.
“One of the problems with a monopoly is it’s very hard to make a price competitive,” Woodward said. “(The Santa Clara Valley Water District) have our entire district, which they serve, over a barrel.”
Councilman Craig Gartman has advised that the city use private aquifers. He has always protested groundwater rate hikes while serving on the water board commission, he said, and he has no plans to change that stance now.
“There is a lot of pressure to bring South County water rates up with North County water rates, and I am completely against that,” Gartman said.
The district’s rates are not slated to go up this year, but Gartman attributes that to the economy, and he expects rates to increase again once the economy improves.
Both Councilwoman Cat Tucker and Mayor Al Pinheiro said they would have to gather more information before deciding whether to protest.
The city has received some correspondence regarding groundwater charges, including a letter from Eagle Ridge Golf Course recommending the city protest the ground water charges.
“Gilroy and Morgan Hill have a fiduciary duty to all of us to protest and, if necessary, file suit to recover the millions of dollars unlawfully collected by the District,” wrote Rick Smith, vice president and general manager of the golf course.
Also at the council meeting
In addition to the groundwater fees, council members will discuss the following items:
-Placing binding arbitration for fire services on the ballot
-Discussion of whether to devote a study session to the subject of bidding out city services
-Deciding whether to close city officers to the public on non-furlough Fridays
-Extending the city’s tenant lease between Gilroy Gardens and the city to 2013
