Gilroy is planning on raising its water and wastewater rates for the first time since 2019.
The city, which owns and operates its water and wastewater utilities, serves more than 15,000 customers, according to Finance Director Harjot Sangha.
But with the number of customers growing, and operational costs climbing as well as needed infrastructure improvements, the city must increase the revenue it receives from those utilities, he told the Gilroy City Council on Aug. 21.
The city hired a consultant to conduct a rate study, the first such study since 2015, according to Sangha.
The study suggests annual increases from 2024 to 2028. For a single-family home that uses 8,300 gallons of water monthly, the bill would rise from its current $55.68 a month to $62.29 in 2024, and gradually increase annually to $77.12 in 2028, according to the report.
Sewer rates for single-family residences would increase from $46.64 a month to $59.74 over the five-year period, while multifamily residences would rise from $33.13 to $40.23.
Beginning Aug. 28, the city will mail out notices of the proposed rate increases to customers along with information on how to protest them.
The council is scheduled to consider adopting the rates on Oct. 16.
Temporary parklet program extended
Also during the Aug. 21 meeting, the council agreed to extend the city’s temporary parklet program that began at the onset of the Covid-19 pandemic.
In mid-2020, when restaurants were forced to shut down due to Santa Clara County’s shelter-in-place order, Gilroy approved a temporary program that would allow the businesses to set up parklets to serve guests outdoors.
The program was extended twice, and expired at the end of May.
Only Station 55 Seafood & Mexican Cocina took advantage of the program, constructing a parklet out in front of its location at 55 Fifth St., said Community Development Director Sharon Goei. The parklet in front of Tempo Kitchen & Bar at 7560 Monterey St. was approved in 2017 under a different program.
Station 55 wants to keep its parklet, according to Goei, which has closed the seating area since the program expired at the end of May.
Councilmember Tom Cline said he was not in favor of parklets because of their aesthetics and for the parking spaces they take up, adding that Station 55’s seating area stretches over three parking spots.
“I really don’t see the need for having a parklet there,” he said. “There’s plenty of space for the business to thrive the way it is without that parklet.”
Councilmember Dion Bracco said he was against parklets.
“I think it’s an unfair gifting of our property, letting businesses use it for free when we’re limited on the parking that we have,” he said.
Councilmember Fred Tovar pointed to the recently completed parking lot at the corner of Eigleberry and Seventh streets that added 140 spaces to downtown.
“We need to help our businesses survive, and I see parklets as doing that,” he said.
Bracco ultimately voted in favor of extending the temporary program through the end of 2023, with Cline casting the lone dissenting vote.
Goei said the extension would allow staff time to incorporate a more permanent program into the Downtown Parking Management Plan, which is currently being drafted.
