The Montebello City Council has voted unanimously to sell the municipal water system. The city will advertise and seeks bids on the system, which serves about 1,550 residential, commercial and industrial customers in north and south Montebello and a small area of Commerce to the west. It is one of five water systems serving Montebello.
The municipal water system has been estimated to be worth between $3 million and $7 million, City Administrator Joseph M. Goeden said. The bidding period is tentatively scheduled to run through mid-December.
Goeden said the city is selling the water system because it is not receiving a good return on its multimillion-dollar investment. The system would have finished the 1986-87 fiscal year $107,000 in the red if the City Council had not approved a 15% rate increase, which took effect last June, a city official said.