Business people hoping for some city help with projects to
improve the attractions of Morgan Hill
’s downtown got some good news at Wednesday’s City Council
meeting but those opposing a rise in water rates did not.
Business people hoping for some city help with projects to improve the attractions of Morgan Hill’s downtown got some good news at Wednesday’s City Council meeting but those opposing a rise in water rates did not.
The city had set aside $3 million to assist approved projects with loans or grants and asked for ideas. It received 23.
A council subcommittee recommended a two-tiered approach: “category one” status where more information is needed and “Quick Hitters” that could be realized quickly with small amounts of effort or money. They, and city staff, will assign the projects to high, medium or low level priority status under quick hitters and collect information from category one projects, with a first report in October.
Council also heard a report from Finance Director Jack Dilles that the proposed 2 percent increase in water rates would not only be needed by Jan. 1, 2004, but an even higher increase would be required.
Dilles said the reason was because the Santa Clara Valley Water District has raised the pump tax it charges the city for water from $140 per acre-foot to $160 per acre-foot and that the city’s operating costs were higher than predicted. He declined to say what rate increase would be needed until his report was final.
Dealing with the perchlorate issue added $400,000 to city costs as well.
City Manager Ed Tewes acknowledged questions from residents challenging the rate increase, asking for a full explanation.
Council asked Dilles to return with a complete report and figures within 30 days.
Tewes also announced that, for the fifth month in a row, all city wells tested non-detect for perchlorate. Non-detect means the chemical’s level is between 0 and 4 percent.
