The cost of tap water in South Santa Clara County could go up by
as much as 11 percent later this year if elected officials follow
the recommendation of an advisory board.
The cost of tap water in South Santa Clara County could go up by as much as 11 percent later this year if elected officials follow the recommendation of an advisory board.
The Santa Clara Valley Water Commission voted Jan. 28 to advise the local water district to approve the increase in the cost of wholesale water, which would jump by 15 percent in North County if the recommendation is enacted into policy.
Staff of the Santa Clara Valley Water District presented six different scenarios of projected water use, water rate changes, and cost cuts to the water commission, according to SCVWD Senior Project Manager Darin Taylor. The scenario approved by the commission assumes that water usage will drop by 10 percent throughout the county, and the district will provide the current level of service to its 1.8 million customers. It also recommends the district cut $12 million in costs.
A hypothetical 10 percent reduction in water use would result in a loss of revenue for the water district, Taylor said. Raising water rates to the level suggested by the commission would recover that revenue, plus additional projected costs associated with removing water from underground aquifers that are utilized in dry conditions, Taylor said.
If the SCVWD board of directors approves the rate increases, the cost of water in South County will go from $275 to $305 per acre-foot. An acre-foot is enough water to supply two families of five for one year. Last year, the district raised water rates by 7.8 percent, and projected they would raise the rate this year to $300.
The SCVWD provides wholesale water to municipalities within the county, who in turn sell water to their residential and commercial users.
Only two of the 30-plus members of the commission, Morgan Hill Public Works Director Jim Ashcraft and Gilroy Councilman Craig Gartman, voted against the recommendation. Ashcraft said he did so because the city has never supported water rate increases in the past, and water district staff have not adequately demonstrated why such a rate hike is needed.
“I said there are some things I like (in the scenario approved), especially a $12 million reduction in expenditures. But I voted ‘No’ because the preliminary staff review indicated an increase in (water rates),” Ashcraft said.
Also, he noted there was “very little discussion” about the rate increases the commission members voted for at the meeting, and staff did not mention the potential rate hikes in each scenario. He said the discussion focused on the level of cost cuts provided by each option, and it is likely that many commission members voted the way they did because of the $12 million in cost reductions.
“Unless (the other commission members) read everything in the report, I’m not sure they knew they were voting to approve potential rate increases,” Ashcraft said.
Gartman called the idea of raising water rates “ridiculous,” and said even when the district claims to cut costs in certain areas, its overall budget continues to climb every year.
SCVWD board director Sig Sanchez, who represents South County, said the drought and the ailing economy will complicate the board’s final decision on water rates, which is expected before June.
“The situation we’re in (with the drought) if it continues, would call for some kind of increase in rates,” Sanchez said. “But with the economy, it may be tough to raise rates at all. I’m not suggesting we’re going to or not going to (raise rates). It’s too early to make such projections.”
He said board members and district staff will continue to study and discuss the possible changes to water rates and cost cuts in the coming months. Taylor said the public hearing process on water rates will begin in April.
Taylor also noted the staff had not yet identified what impact the $12 million in cuts would have on the level of service provided, though he acknowledged it would have some impact.
The commission’s vote would only affect the rate of municipal and industrial water, and Taylor said the district will soon run projections on agricultural water rates. In South County, the rate for agricultural water is currently $16.50 per acre-foot.
The water commission is an advisory committee to the district’s board of directors, and is made up of officials from the cities in Santa Clara County and the county itself. It advises the board on matters related to water supply and water quality, and assists the board in each annual review of groundwater charges.
