On Tuesday night, the Rochester City Council gave the thumbs up to the inclusion of water system improvements on Milton and Salmon Falls roads as part of its grant application to the U.S. Economic Development Administration. The water system improvements would beneficial to that proposed expansion project of the Market Basket plaza. The cost of doing water and sewer improvements in the area would total just under $4 million, half of which would come through the EDA grant that the city is currently considering applying for.  If the project was to move forward, the average annual rate for municipal water and sewer customers could increase by about $10, according to Finance Director Blaine Cox. The City Council will hold a public hearing on whether the city should go ahead with that EDA grant application on Tuesday