Public hearing Tuesday for water rate increases

Two weeks remain for South County’s 4,000 well owners to mail
their letters protesting the groundwater rate increase of 3.6
percent that’s been recommended for the new fiscal year. If 50
percent plus one well owners protest the rise, the Santa Clara
Valley Water District board of directors will not authorize a
charge that includes the increase.
Two weeks remain for South County’s 4,000 well owners to mail their letters protesting the groundwater rate increase of 3.6 percent that’s been recommended for the new fiscal year. If 50 percent plus one well owners protest the rise, the Santa Clara Valley Water District board of directors will not authorize a charge that includes the increase.

Last year was the first time the district accepted and validated protest letters; the protest failed when fewer than 500 protest letters were counted. Only water retailers or property owners with wells will count toward the 50 percent requirement, according to the water district.

The public hearing on groundwater increases closes April 26, also marking the final day to protest. Local residents will have a chance to address the board of directors at 7 p.m. Tuesday at the South County public hearing at Morgan Hill City Council Chambers, 17555 Peak Avenue. District staff will give a presentation on groundwater rates and take comments from the public.

The board is scheduled to vote on the 2011-12 rates April 26.

Water charges were flat from 2009 through 2011, but based on the district’s projections the charges will increase 18 percent over the next five years from this year’s proposed $275 per acre foot to $325 per acre foot. One acre foot is enough water to supply a family of five for one year.

According to the district, the average household in South County would experience a monthly increase of 34 cents or about 1 cent per day. Water district rates do rank as some of the lowest per month in the state; Bakersfield and Sacramento are listed among those that pay between $21 and $29 a month on average. Water used for agriculture purposes is also increasing by 3.6 percent to $17.10 per acre foot from $16.50.

The north county zone is subject to a 9.4 percent rate increase in 2011-12, and according to senior project manager Darin Taylor the district needs to raise rates because water usage has declined. It hit a 15-year low last year because of the economy and rainy season.

The rate profit goes to funding “critical capital program needs” such as the Anderson Dam seismic retrofit and keeping the groundwater basin recharged.

The protest procedure is based on Prop 218, a California law enacted in 1996 that says voters must approve property-related fees. However, the water district has gone to court over the complicated rules of Prop 218, believing its service is not a property-related fee and has been involved in multi-million litigation with San Jose water retailer Great Oaks Water Co. who claimed they never authorized rate increases. Great Oaks won a $5 million settlement in 2009 that the district is currently appealing.

“Regardless of whether the water district is legally required to, the board of directors continues to believe it is to be in the best interest of the community to align its practices,” according to the district website page on the 2011-12 protest procedure.

The water district provides water supply and flood protection to the county’s 1.8 million people. The agency employs about 750 people and manages an annual budget of $305 million.

Read the water district’s presentation at right, just click on the Adobe Acrobat link to download or view it.

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