Gilroy
– The average household will see a 52 cents-a-month bump in
their water bill beginning July 1.
Gilroy – The average household will see a 52 cents-a-month bump in their water bill beginning July 1.
This week, the board of directors for the Santa Clara Valley Water District approved a 7.5 percent increase in South County water rates, pushing the price of one acre foot to $215 for municipal and industrial use. Agriculture water will cost $21.50 an acre foot.
The largest increase is for recycled water, which will cost $156 for municipal and industrial users and $39 for farmers, increases of about 25 percent.
The new rates were adopted despite the best efforts of some South County residents. At a rate hearing last week in Morgan Hill, Terry Mahurin and Bob Cerruti gave an extended slide presentation detailing what they believe is wrong with district finances and arguing for a rate decrease.
Mahurin and Cerutti think the district is overstaffed and overextended in niche projects such as recycled water that boost prices and provide relatively few benefits.
“There is a cost overhead issue in the district that needs to be addressed,” Mahurin said. “It’s just as plain as the fire engine is red or the sky is blue.”
Mahurin and Cerutti say that South County rates have grown from $22 per acre-foot in 1987 to $215 in 2005, not due to supply and demand or inflation, but poor management. Cerruti said the district is violating its own charter by using water rate revenue to install energy-saving solar panel at district offices.
“The district act lists certain category that money can be used for, and we feel it’s being used for other categories,” Cerruti said. He said the district also needlessly charges South County users for 14,000 acre feet of water imported through the Central Valley Project instead of providing water from Anderson Lake.
A Paradise Valley homeowner and Calpine representative also urged the board to at least hold rates steady.
Walt Wadlow, a district financial officer, said Wednesday that the district needs to do a better job of communicating with the rate payers and explaining district operations.
“They made some good points that need to be clarified,” Wadlow said of Cerruti and Mahurin. “We need to clarify why imported water is important to South County, and we need to examine what additional measures we can take to reduce expenses.”
Although the district board adopted staff recommendations regarding rates, in response to the agriculture community, the board did ask staff to consider increasing the discount given to farmers who participate in district conservation programs. That decision will be made in May.
