Gilroy water users pay among the highest initial rates for
commercial irrigation in Santa Clara County, but the Garlic Capital
is the priciest once the city’s system of tiers and zones kicks
in.
Gilroy water users pay among the highest initial rates for commercial irrigation in Santa Clara County, but the Garlic Capital is the priciest once the city’s system of tiers and zones kicks in.
Within Gilroy’s tiered and zoned rate structure for commercial users, the city’s price for water grows as usage – and elevation – rises. But even on flat land, enterprises using an average amount of irrigation water can expect to pay far more than businesses in neighboring communities.
“A moderate user in Gilroy pays more than double what a moderate user does in Morgan Hill,” said Greg Bozzo, a certified water manager and co-founder of Landscape Innovation.
When it comes to irrigation, Gilroy users pay about 2.5 times more than those in Morgan Hill.
Gilroy’s rates start at $4.65 per 1,000 gallons, and those needing irrigation services at higher elevations can pay up to $8.28 if they use more than 30,000 gallons in a month.
Morgan Hill currently charges a flat fee of $1.91 per 100 cubic feet for irrigation use, which translates to 748 gallons, according to city figures. Gilroy is the only city in the county that measures its water per 1,000 gallons instead of per 100 cubic feet.
The only city that approaches Gilroy’s rate potential is Mountain View, which pays no more than $6.77 per unit for irrigation water.
Other water dispensers – San Jose Water Company ($2.76), Sunnyvale ($3.47) and Milpitas ($4.79) don’t touch Gilroy’s rate. San Jose’s Evergreen region is the only other area that uses zones for its water rates, which rise to $2.66 for nonresidential water use and $1.58 for irrigation when using recycled water.
City Administrator Tom Haglund said sending water uphill doesn’t come cheap in Gilroy. Each zone within Gilroy’s tiered-rate structure represents a higher elevation, which in turn nets a higher rate.
“These zones require additional pump equipment, pump maintenance as well as reservoir storage to meet water pressure and volume requirements at these higher elevations,” Haglund wrote in an email.
City Senior Engineer David Stubchaer said the system “doesn’t run itself.”
The city’s expenses also include paying pump taxes to the water district, salaries, electrical costs for pumping from the wells, booster pumps and maintenance for storage tanks, valves and pipes. Not to be forgotten are replacement costs, water testing and reporting costs, meter reading, monitoring and billing costs, Stubchaer said.
“As electrical costs and pump taxes go up, costs go up,” Stubchaer said. “As pipes get older, they will need to be replaced. As demand increases, new wells may be needed.”
Gilroy residents who use an average monthly amount of residential water get more bang for their buck compared with neighbors in Morgan Hill due to the per 1,000 model, things can get complicated – and pricey – when climbing within Gilroy’s rate system.
For comparison, Stubchaer, the city engineer, said the average Gilroy household uses about 10,500 gallons a month.
A household that uses Stubchaer’s 10,500 gallons average receives about a $28 bill.
Under Morgan Hill’s rate structure, 10,500 gallons – or 14 units at a $2.34 rate – will net a bill of about $33 within the city limits.
But how much Gilroyans pay isn’t really that simple. Like the irrigation setup, rates fluctuate not only depending on how much water is used, but where.
The city’s rates are broken into separate tiers: They start at 88 cents per unit from zero to 5,000 gallons, but rise to $1.73 from 5,001 to 15,000 gallons in tier 2. The figure jumps to $4.65 in tier 3 from 15,001 gallons to 30,000 gallons then up to $6.78 in tier 4, which is for homes that use more than 30,000 gallons monthly.
“When you start using enough water to get into tier 3 and 4, things get expensive,” Stubchaer said.
And even those prices can go higher thanks to the city’s three zones within each tier. The second half of Gilroy’s residential rate structure mirrors its irrigation structure – the higher you go, the more you pay.
A Gilroy homeowner in the most expensive zone living on a hill and using about 17,000 gallons can pay about twice compared to a Morgan Hill resident.
In its recently approved capital improvements budget, the city has set aside $100,000 per year for the next six years to improve and update water meters, said City Water Supervisor Dan Aldridge.
Haglund said last month that the city is currently conducting a water rates study, but didn’t say whether Gilroy’s rates would rise in conjunction with the water district’s. City Finance Director Christina Turner said the results of the rate study should go before the Gilroy City Council by this fall, and new rates could potentially be in affect by January.
“It just depends on how the study proceeds,” Turner said.
Morgan Hill City Manager Ed Tewes has proposed a 10 percent rate increase in the next fiscal year’s budget, and the Santa Clara Valley Water District last month approved a 3.6 rate increase for the same period.
City of Gilroy Water Rates (costs per month):
Base rates/minimum charge:
Meter size
3/4 inch $6.02
1 inch $6.79
1.5 inch $16.98
2 inch $27.15
Residential:
Tiers Rate/1,000 gal. Zone 2 Zone 3
0-5,000 $0.88 $1.62 $2.38
5,001-15,000 $1.73 $2.47 $3.23
15,001-30,000 $4.65 $5.40 $6.16
30,001+ $6.78 $7.51 $8.28
Senior:
Tiers Rate/1,000 gal. Zone 2 Zone 3
0-5,000 Free Free Free
5,001-15,000 $1.73 $2.47 $3.23
15,001-30,000 $4.65 $5.40 $6.16
30,001+ $6.78 $7.51 $8.28
Commercial:
Tiers Rate/1,000 gal. Zone 2 Zone 3
0-3,000 $0.88 $1.62 $2.38
3,001-30,000 $2.10 $2.82 $3.59
30,001+ $2.33 $3.07 $3.83
Irrigation:
Tiers Rate/1,000 gal. Zone 2 Zone 3
0-30,000 $4.65 $5.40 $6.16
30,001+ $6.78 $7.51 $8.28
Source: City of Gilroy
Water rates
Below are Gilroy’s irrigation rates compared with the rest of Santa Clara County. Gilroy is the only city which measures its water rates per 1,000 gallons. All others are measured in units per 100 cubic feet, or 748 gallons.
GILROY:
Tiers Rate/1,000gal. Zone 2 Zone 3
0-30,000 $4.65 $5.40 $6.16
30,001+ $6.78 $7.51 $8.28
MORGAN HILL: $1.91
SAN JOSE MUNICIPAL: $1.58 (recycled water), $2.33-$2.66 (nonresidential)
SAN JOSE WATER COMPANY (includes Campbell, Cupertino, Santa Clara, Los Gatos, Monte Sereno and Saratoga): $2.51 (0 to 13 units, small meter), $2.76 (13-plus units, small meter); $2.51 (0 to 26 units, large meter), $2.76 (26-plus units, large meter)
GREAT OAKS WATER: $1.92 (nonresidential), $1.81 (agricultural irrigation)
LOS ALTOS: $3.12 (up to 6-inch meter), $3.14 (8-inch-plus meter)
MILPITAS: $3.79 (potable), $4.79 (nonpotable)
MOUNTAIN VIEW: $1.65 (0 to 6 units), $3.40 (6 to 25 units) $6.77 (25-plus units)
PALO ALTO: $4.94
SUNNYVALE: $3.13 (recycled water), $3.47 (landscape water)
Source: City websites, water spokesman and California Department of Water
