At the March 21 City Council meeting, representatives from the County, Jamboree, Abode Services, and the Tenant’s Association will be in attendance. Jamboree will provide an update including current occupancy status, planned future capital improvements, and any modifications to management and oversight roles and responsibilities, and enforcement process for compliance terms of lease agreements. Abode Services will provide a summary of the supportive services they offer. The Office of Supportive Housing in partnership with 381
Item # 18.
the Hillview Court Apartments Tenant’s Association will provide an update on efforts to address concerns raised by tenants.
Police Department staff will present crime statistics from January 2020 through February 2023 including the number of calls for service, types of calls for service, and officer-initiated activity. Fire Department staff will also provide information about calls for service from January 2020 through February 2023.
FISCAL IMPACT:
There is no fiscal impact associated with receiving this report. However, the increased volume of Police and Fire calls for service at this site impacts response times to the rest of the Milpitas community and may necessitate investment in additional public safety resources in the future.
California Environmental Quality Act (CEQA):
Not applicable.
RECOMMENDATION:
Receive a Report on the Homekey Project at 1000 Hillview Court.
Attachment(s):
1. Site Plan with Proposed Fence Location
382
Item # 18.
48"
32X32
48 "
48"
48"
HB
H B
HB
EXISTING TRASH ENCLOSURE
HILLVIEW CT.
EXISTING
FIRE
HYDRANT
EXISTING
FIRE
HYDRANT
EXISTING PARKING
EXISTING LIGHT
POLE
EXISTING
FIRE
HYDRANT
EXISTING
LIGHT
POLE
EXISTING
LIGHT
POLE
MAINTAIN
42" MIN. CLR.
FIRE PROTECTION NOTES
1. FIRE PROTECTION SYSTEMS CERTIFICATION IS NEEDED PRIOR TO ANY OCCUPANCY
2. AUTOMATIC SPRINKLER SYSTEM TESTING, MAINTENANCE, AND CERTIFICATION FIRE DEPARTMENT RECORDS SHOW THAT THIS BUILDING MAY BE IN NEED OF "ANNUAL" AND "5-YEAR" INSPECTION AND TESTING CERTIFICATION. CURRENT SYSTEM CERTIFICATION IS REQUIRED PRIOR TO FINAL.CFC SECTION 901.6.1, CA TITLE 19, DIVISION 1, NFPA 25
3. PRIVATE FIRE HYDRANTS TESTING, MAINTENANCE AND CERTIFICATION PRIVATE FIRE HYDRANT TESTING AND MAINTENANCE CERTIFICATION IS REQUIRED. PROVIDE
RECORDS SHOWING THAT THE PRIVATE FIRE HYDRANTS HAVE HAD THE NECESSARY INSPECTION, TESTING AND MAINTENANCE IN ACCORDANCE WITH THE NFPA 25, CALIFORNIA EDITION. SYSTEM CERTIFICATION IS REQUIRED PRIOR TO FINAL.
4. PRIVATE FIRE HYDRANT IDENTIFICATION
PRIVATE HYDRANTS SHALL HAVE THE BOTTOM 6 INCHES OF THE HYDRANT PAINTED, WITH A WEATHER RESISTIVE PAINT, WHITE IN COLOR. CFC SECTION 507.5.7, ADDED TO THE CFC PER MILPITAS MUNICIPAL CODE SECTION V-300-2.62
5. FIRE SPRINKLER SYSTEM DRAINAGE
WHEN A SYSTEM IS REQUIRED TO BE DRAINED, DO NOT DISCHARGE WATER INTO THE STORM DRAIN. USE ALTERNATE DRAINAGE POINTS SUCH AS SANITARY SEWER, LARGE LANDSCAPE
AREA WHERE NO RUN-OFF WILL OCCUR, OR CONTAINMENT TANK WITH DISCHARGE INTO SANITARY SEWER OR TREATMENT PLANT. PROVIDE SIGNAGE (DURABLE, PERMANENT WITH CONTRASTING BACKGROUND) AT ALL DRAIN VALVES TO READ: DO NOT DRAIN FIRE SPRINKLER WATER SYSTEM INTO THE STORM DRAIN(S).
6. FIRE ALARM SYSTEM
FIRE DEPARTMENT RECORDS SHOW THAT THIS BUILDING MAY BE IN NEED OF "ANNUAL INSPECTION, TESTING AND MAINTENANCE" AS REQUIRED BY THE NFPA 72, CHAPTER 14.
CURRENT SYSTEM CERTIFICATION IS REQUIRED PRIOR TO FINAL FOR THIS PERMIT.
7. EMERGENCY CONTACT INFORMATION
THE PROJECT’S EMERGENCY CONTACT INFORMATION IS REQUIRED PRIOR TO ANY OCCUPANCY. PLEASE CONTACT THE FIRE PREVENTION OFFICE AT 408-586-3365 FOR THE FORM.
CONSTRUCTION SAFEGUARD NOTES:
1. INSTALL DUST SCREENING AS REQUIRED DURING DEMOLITION ACTIVITIES THAT GENERATE DUST. MAINTAIN NEGATIVE PRESSURE IN AREAS OF WORK TO MINIMIZE
TRANSMISSION OF DUST TO OCCUPIED AREAS
1.1 GENERAL CONTRACTOR SHALL ENSURE THAT DUST IS CONTROLLED AND THAT DISPOSAL OF
CONSTRUCTION DEBRIS IS PERFORMED IN SUCH A MANNER AS TO NOT TO INTERFERE WITH THE
OCCUPIED DWELLING UNITS
1.2 GENERAL CONTRACTOR TO ENSURE THAT NOISE IS LIMITED TO ACCEPTABLE LEVELS IN
ACCORDANCE WITH THE CITY OF MILPITAS NOISE CONTROL REGULATIONS
2. MEANS OF EGRESS AND REQUIRED ACCESSIBLE MEANS OF EGRESS SHALL BE MAINTAINED AT
ALL TIMES DURING CONSTRUCTION, DEMOLITION, REMODELING, OR ALTERATIONS AND ADDITIONS TO ANY BUILDING.
2.1 ALL EXISTING MEANS OF EGRESS MAY NOT BE USED TO STORE MATERIAL. EQUIPMENT AND DEBRIS – TRANSPORTATION OF ALL MATERIALS, EQUIPMENT AND DEBRIS MUST BE COORDINATED WITH THE CITY OF MILPITAS BUILDING INSPECTOR.
2.2 REQUIRED EGRESS AT EXISTING CORRIDORS AND STAIRS SHALL NOT BE OBSTRUCTED AT ANY TIME
3. ACCESS TO STAIRS, ELEVATOR AND CORRIDORS MUST REMAIN AVAILABLE AT ALL TIMES THROUGHOUT THE LIFE OF THE RENOVATION PROJECT. PLACE PROMINENT VISIBLE SIGN THAT READS:
THIS IS A REQUIRED EXIT, DO NOT BLOCK
4. RENOVATIONS REQUIRING MODIFICATION TO THE EXISTING FIRE SPRINKLER SYSTEM TO
ACCOMMODATE FOR THE NEW SCOPE OF WORK FOR THE UNITS AND OFFICE AREAS FLOOR LAYOUTS
SHALL BE DESIGN AND APPROVED IN ACCORDANCE WITH THE CITY OF MILPITAS FIRE DEPARTMENT REQUIREMENTS.
4.1 EXISTING FIRE SAFETY SYSTEMS FOR ALL OCCUPIED DWELLING UNITS AND BUILDING SHALL BE
MAINTAINED
5. CONSTRUCTION EQUIPMENT AND MATERIALS SHALL BE STORED AND PLACED SO AS NOT TO
ENDANGER THE PUBLIC, THE WORKERS OR ADJOINING PROPERTY FOR THE DURATION OF THE CONSTRUCTION PROJECT.
6. WASTE MATERIALS SHALL BE REMOVED IN A MANNER THAT PREVENTS INJURY OR DAMAGE TO
PERSONS, ADJOINING PROPERTIES AND PUBLIC RIGHTS-OF-WAY
7. FIRE SAFETY DURING CONSTRUCTION SHALL COMPLY WITH THE APPLICABLE REQUIREMENTS OF 2019 C.B.C. AND THE APPLICABLE PROVISIONS OF CHAPTER 33 OF THE CALIFORNIA FIRE CODE.
8. STRUCTURES UNDER CONSTRUCTION, ALTERATION OR DEMOLITION SHALL BE PROVIDED WITH NOT FEWER THAN ONE APPROVED PORTABLE FIRE EXTINGUISHER IN ACCORDANCE WITH SECTION 906 AND SIZED FOR NOT LESS THAN ORDINARY HAZARD AS FOLLOWS:
A)
AT EACH STAIRWAY ON ALL FLOOR LEVELS WHERE COMBUSTIBLE MATERIALS HAVE ACCUMULATED.
B)
IN EVERY STORAGE AND CONSTRUCTION SHED.
C)
ADDITIONAL PORTABLE FIRE EXTINGUISHERS SHALL BE PROVIDED WHERE SPECIAL HAZARDS EXIST, SUCH AS THE STORAGE AND USE OF FLAMMABLE AND COMBUSTIBLE LIQUIDS.
9. FIRE SPRINKLER AND FIRE ALARM MODIFICATIONS REQUIRE A SEPARATE PERMIT.
10. PROVIDE TEMPORARY PARTITIONS PER DETAIL 17/A-711 TO MAINTAIN PROPER FIRE EXITS AND TO
CONFINE PEDESTRIAN ACTIVITY TO OCCUPIED SPACES MAINTAIN REQUIRED MEANS OF EGRESS AND SIGNAGE FOR EGRESS.
CONSTRUCTION TRAI
LER
/ CHECK IN
3 AREA OF
REFUGE
EXTENT
OF
TEMPORARY
PARTITION
CONSTRUCTION
STAGING
CONSTRUCTION
PHASING - SITE
PLAN
A-040
1 Project Contact:
Principal:
Job #:
laguna hills, ca 92653
www.adcollaborative.com
23231 south pointe drive
949.267.1660
COPYRIGHT C
Sheet Issue & Revision Log
Client
3RD CITY SUBMITTAL 03-22-21
4TH CITY SUBMITTAL 04-26-21
5TH CITY SUBMITTAL 05-14-21
HILLVIEW COURT (ESA) PHASE II
1000 HILLVIEW COURT
MILPITAS, CA 95035
A
B
C
D
Victor Robles
[email protected]
Corey DeManty
2020-0008
CHRISTOPHER
WEIMHOLT
No. C-32271
10/31/21
RENEWAL DATE
Company:
Address:
Phone No.
Jamboree Housing Corporation
17701 Cowan Ave, Suite 200
Irvine, CA 92614
(949)263-8676
2ND CITY SUBMITTAL 02-09-21
1ST CITY SUBMITTAL 12-07-20
SCALE: 3/32"=1'-0" 1CONSTRUCTION PHASING - SITE PLAN
1 2
CONFIRM ALL EXERIOR LIGHTING AND SECURITY SYSTEMS ARE OPERATIONAL AND IN GOOD WORKING CONDITION.
ALL CONSTUCTION MATERIALS ARE TO BE SECURED IN DESIGNATED AREAS AND OUT OF REACH OF ALL STAFF, RESIDENTS AND VISITORS.
CONSTRUCTION PERSONNEL ENTRANCE
3 SCOPE OF WORK - PHASE 2 (SITEWORK) UNDER THIS PERMIT
1. ALL DEMOLITION AND REMOVAL OF MATERIALS WILL BE DONE BEFORE OCCUPANCY
2. DEMOLITION WILL BE PHASED BY FLOOR, STARTING WITH THE THIRD FLOOR, THE OCCUPANCY
WILL OCCUR AFTER THE DEMOLITION AND REMOVAL OF DEBRIS
3. AFTER OCCUPANCY, ANY MATERIAL PREP, SAWING AND CUTTING, MAJORITY OF THAT WILL
OCCUR IN CONSTRUCTION YARD, MINOR MODIFICATIONS WILL BE DONE IN THE UNITS
4. NO DEBRIS BEING STORED IN ANY UNITS, ONLY FURNITURE STORED IN ADJACENT VACANT UNIT
5. UNITS DIRECTLY ADJACENT TO COMMON AREA AMENITY, MOBILITY, AND AUDIO VISUAL UNIT
RENOVATION WORK MAY BE LEFT VACANT TO MITIGATE NOISE
6. FIRE SPRINKLER RENOVATION WORK WILL BE DONE UNDER FIRE WATCH DURING THE RENOVATION OF LIFE FIRE SAFETY SYSTEMS. FIRE WATCH TO BE DEFERRED SUBMITTAL, ISSUED AND
APPROVED BY LOCAL FIRE AUTHORITY
7. ALL PERIMETER SIDEWALKS TO REMAIN CLEAR OF ANY CONSTRUCTION ACTIVITY AND MATERIALS
8. PHASING PLAN REQUIREMENTS SHALL BE PUT INTO PLACE PRIOR TO START OF ANY DEMOLITION AND SHALL BE COMPLIED WITH DURING ALL DEMOLITION WORK. TEMPORARY FIRE WALL(S) SHALL BE INSTALLED PRIOR TO ANY DEMOLITION ON EXISTING FIRE WALLS AND REMOVAL OF FIRE DOORS.
GENERAL CONSTRUCTION NOTES DEFERRED SUBMITTALS
1. FIRE WATCH PLAN
C
C
CODE COMPLIANCE
B-BP20-0430
06/02/21
CITY OF MILPITAS
BUILDING & SAFETY
DEPARTMENT
REVIEWED FOR
383
Item # 18.
March 21, 2023
City Council Meeting
Presentations
Item #15: Public Hearing to Consider Changes to Water, Recycled Water, and Wastewater Rates and Charges for FY 23/24 through FY27/28
Item #16: Public Hearing to Consider Changes to Sewer Rates and Charges for FY 23/24 through FY27/28
City Utilities
Public Hearing to Consider Changes
to Water, Recycled Water, and
Wastewater Rates and Charges for
FY 23/24 through FY27/28
March 21, 2023
2 Agenda
Highlight Proposition 218 Requirements
Outreach
Water Utility Needs
Sewer Utility Needs
Residential Bill Impacts
3 Proposition 218 - Summary
1. Charges shall not exceed the costs required to provide service. Revenues shall not be used for any purpose other than that for which the charge was imposed.
2. Requires local agencies imposing any new or any increases in any existing property-related fees and charges to comply with certain procedural requirements prior to their adoption.
Hold a public hearing
Provide ratepayers and property owners with a written notice of the proposed rate increases, and the date, time and location of the public hearing If a majority of parcels submit protests, the City cannot adopt the proposed rates.
4 Timeline
Date Meeting Action
December 6, 2022 City Council Council consideration to start Prop 218 process
January-February 2023 Community
Community Outreach to single
family residences, multi-family,
mobile homes and businesses
March 21, 2023 City Council
Public Hearing
Council consideration of proposed
rates
May 9, 2023 City Council FY 2023-24 Operating Budget
Study Session
June 6, 2023 City Council Public Hearing and FY 2023-24 Budget Adoption
July 1, 2023 Implementation of proposed rates and charges 5 Community Outreach
1. Community Open Houses
• February 9, 2023
• February 16, 2023
2. Chamber of Commerce Outreach
• February 23, 2023
3. Media
• Milpitas Matters
• Connected
• Facebook/Twitter/NextDoor
• Soofa Digital Display Boards
• Dedicated webpage: milpitas.gov/watersewer2023
6 Water Utility
7 Water – at a Glance
Serves approximately 16,750 customer accounts plus recycled customer accounts
206 miles of pipeline, four pumping stations, five storage reservoirs and pressure valves regulating seven pressure zones
Delivers on average 11 million gallons of drinking water per day The City purchases wholesale drinking water from the San Francisco Public Utilities Commission and Valley Water
Master Plan adopted by City Council on August 9, 2022
8 Water Utility
CIP Projects to be Completed
City-Owned Facilities
10 Drivers of Water Rate Increase: Water Supply
Contracts
Over five years the annual wholesale cost to buy water increases from $23.6 million in FY 23/24 to $31.1 million in FY 27/28 FY 24 FY 25 FY 26 FY 27 FY28
Water Utility Fund Reserves Analysis
- No Rate Adjustments
$5 million
revenue loss Requires 3-year
14% annual rate
increases
12 Water Utility Fund Reserves Analysis –
Assumes Rate Adjustments
Proposed Financial Plan – Projected Ending Balances
FY2028 estimated reserves
• Capital for Emergencies
$11.3M or 88% of target level
• Rate Stabilization $4.9M or 68%
of target level
• Pension Liability Reserve $0.8M
has no target level
13 Proposed Five-Year Water Rates/Charges for
a Single-Family Residence
Typical Bi-
Monthly Bill FY2023
(Current Rate) FY2024 FY2025 FY2026 FY2027 FY2028
Fixed Charge $34.10 $35.87 $38.21 $40.70 $43.35 $46.17
Volume Charge $93.80 $100.38 $106.96 $113.96 $121.38 $129.36 Capital Charge $15.12 $15.96 $16.80 $17.64 $18.62 $19.60 Total $143.02 $152.21 $161.97 $172.30 $183.35 $195.13
$ Change $9.19 $9.76 $10.33 $11.05 $11.78
% change 6.4% 6.4% 6.4% 6.4% 6.4%
14 Proposed Water Rates Schedule
Potable Water Fixed Meter Charges
Bi-monthly $ based on Meter Size | Applies to all customer classifications Meter Size
(Inches)
Current
Rates 7/1/2023 7/1/2024 7/1/2025 7/1/2026 7/1/2027
5/8 $34.10 $35.87 $38.21 $40.70 $43.35 $46.17
3/4 $51.14 $47.03 $50.09 $53.35 $56.82 $60.52
1 $85.24 $69.34 $73.85 $78.66 $83.78 $89.23
1-1/2 $170.48 $125.14 $133.28 $141.95 $151.18 $161.01
2 $272.76 $192.10 $204.59 $217.89 $232.06 $247.15
3 $511.43 $404.13 $430.40 $458.38 $488.18 $519.92
4 $852.38 $716.60 $763.18 $812.79 $865.63 $921.90
6 $1,704.76 $1,464.29 $1,559.47 $1,660.84 $1,768.80 $1,883.78 8 $1,704.76 $3,138.22 $3,342.21 $3,559.46 $3,790.83 $4,037.24 10 $1,704.76 $4,700.56 $5,006.10 $5,331.50 $5,678.05 $6,047.13 Volumetric Charges
Bi-monthly $ per unit (1 unit = 1 hundred cubic feet = 748 Gallons) Meter Size
(Inches)
Current
Rates 7/1/2023 7/1/2024 7/1/2025 7/1/2026 7/1/2027
Potable $6.70 $7.17 $7.64 $8.14 $8.67 $9.24
Recycled $4.51 $5.41 $5.77 $6.15 $6.55 $6.98
Capital $1.08 $1.14 $1.20 $1.26 $1.33 $1.40
Private Fireline – NO CHANGE
Bi-monthly $ based on Fire Service Line Size | Applies to all customer classifications with a dedicated fireline
Line Size
(Inches)
Current
Rates 7/1/2023 7/1/2024 7/1/2025 7/1/2026 7/1/2027
2 $54.55 $54.55 $54.55 $54.55 $54.55 $54.55
3 $102.29 $102.29 $102.29 $102.29 $102.29 $102.29
4 $170.48 $170.48 $170.48 $170.48 $170.48 $170.48
6 $340.95 $340.95 $340.95 $340.95 $340.95 $340.95
8 $340.95 $340.95 $340.95 $340.95 $340.95 $340.95
10 $340.95 $340.95 $340.95 $340.95 $340.95 $340.95
Recycled Water Fixed Meter Charges - REDUCED
Bi-monthly $ based on Meter Size | Applies to all customer classifications Meter Size
(Inches)
Current
Rates 7/1/2023 7/1/2024 7/1/2025 7/1/2026 7/1/2027
5/8 $34.10 $13.54 $14.43 $15.37 $16.37 $17.44
3/4 $51.14 $13.54 $14.43 $15.37 $16.37 $17.44
1 $85.24 $13.54 $14.43 $15.37 $16.37 $17.44
1-1/2 $170.48 $13.54 $14.43 $15.37 $16.37 $17.44
2 $272.76 $13.54 $14.43 $15.37 $16.37 $17.44
3 $511.43 $13.54 $14.43 $15.37 $16.37 $17.44
4 $852.38 $13.54 $14.43 $15.37 $16.37 $17.44
6 $1,704.76 $13.54 $14.43 $15.37 $16.37 $17.44
8 $1,704.76 $13.54 $14.43 $15.37 $16.37 $17.44
10 $1,704.76 $13.54 $14.43 $15.37 $16.37 $17.44
15 Water Rate Comparison for Single Family
Residence Bi-Monthly
Proposed rates and charges will be approximately $11.87 less than the average of similar public agency water systems.
This comparison does not include any forthcoming rate increases from other water systems.
16 • Milpitas Assistance Program
For more information contact: (408) 586-3405 or email [email protected]
17 Water Bill Impact Summary
• In FY 23/24, a typical single-family residential household will experience an increase in their water bill of $4.60 a month or $55.14 over the course of the whole year
• All recycled water accounts will experience reductions in their fixed meter charge ranging anywhere from $20.56 per bill for a 5/8" meter to $1,691.22 per bill for 6", 8", and 10" meters
• All potable water customers with meter sizes ranging from ¾" to 6" will see reductions in their bi-monthly fixed meter charge ranging from a minimum of $4.11 to a maximum of $240.47
• Charges for private fire service remain unchanged through FY 27/28 18 Staff Recommendation
• Open Public Hearing and receive all written and verbal testimony regarding proposed rate increases
• Move to close the public hearing following all speakers • Receive a summary from the City Clerk of the number of written protests received and the number required for a majority protest • City Attorney shall read aloud the title of Ordinance No. 120.50 • If no majority protest exists, move to waive the first reading beyond the title and introduce Ordinance No. 120.50 to approve updated water and recycled water rates for FY23/24 through FY27/28. Ordinance is entitled: “AN ORDINANCE OF THE CITY OF MILPITAS AMENDING CHAPTER 1 OF TITLE VIII OF THE MILPITAS MUNICIPAL CODE RELATING TO WATER SERVICE CHARGES.” 19 Questions?
Thank you
20 Sewer Utility
21 Sewer – at a Glance
City is responsible for the collection of sewage, which is conveyed for treatment to the San Jose/Santa Clara Regional Wastewater Facility (RWF) Serves approximately 15,350 customer accounts
175 miles of pipeline and two pumping stations
Conveys an average rate of 6-7 million gallons per day to the RWF The cost to customers of the Sewer System for treatment at the RWF is determined by a master agreement between the City and the RWF
Treated water is released to the San Francisco Bay or recycled for industrial and irrigation purposes
22 Sewer Utility
CIP Projects to be Completed
Project Year of Construction Estimated Cost
Pipeline Replacement FY26 – FY28 $5.3 Million
Condition Assessment FY24 – FY28 $2.1 Million
Force Main A FY25 – FY26 $27.1 Million
SJ/SC Regional Wastewater Facility FY24 – FY28 $30.1 Million Master Plan Projects Scheduled for construction between FY 24-28 23 Force Main - A
24 Drivers of Sewer Rate Increase: Expenses
• 58% of anticipated revenues
go to San Jose for O&M and
treatment costs
• San Jose O&M costs
projected to increase 4%
annually from $7.3 million in
FY24 to $8.5 million in FY28
• San Jose treatment cost
contributions total $30 million
over a five year period
• Costs peak in FY26 as City
addresses FMA project
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
2023 2024 2025 2026 2027 2028
Sewer Utility Expense Plan
Operating Expenses San Jose O&M San Jose Capital
Existing Debt Service Proposed Debt Service Rate Funded Capital Revenue at Current Rates Revenue at Proposed Rates
25 Sewer Utility Fund Reserves Analysis
- No Rate Adjustments
Status Quo Financial Plan – Projected Ending Balances FY2028 estimated reserves Infrastructure reserves will begin
to be depleted in FY 2026 - $16
million of these reserves will be
exhausted in the last three years
Over 5 years, $30 million is
projected to be remitted to SJ for
City's 8% of the RWF CIP
City's ability to borrow to finance
FM-A could be jeopardized
26 Sewer Utility Fund Reserves Analysis
- Assumes Rate Adjustments
Proposed Financial Plan – Projected Ending Balances
FY2028 estimated reserves
• Capital Reserve for
Emergencies $5.2M at 100%
of target level
• Rate Stabilization $3.5M at
100% of target level
27 Proposed 5–Year Sewer Rates
Rate/Charges for Residential & Businesses
Bi-Monthly
Rate Schedule
FY 2023
(Current Rate) FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Annual % Change
Single Family $124.14 $128.44 $133.58 $138.93 $144.49 $150.27 4% Multi-Family $95.34 $97.96 $101.88 $105.96 $110.20 $114.61 4% Mobile
Home Parks * $78.28 $84.42 $91.05 $98.20 $105.91 $114.22 7.9% * Mobile Home Parks – proposed phase out of subsidy
28 Mobile Homes – Phasing out the Subsidy over
5 years
(Bi-Monthly Rates)
Mobile Homes
FY 2023
(Current Rate) FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Subsidized Rate $78.28 $84.42 $91.05 $98.20 $105.91 $114.22 $ Change $6.15 $6.63 $7.15 $7.72 $8.29
% Increase 7.9% 7.9% 7.9% 7.9% 7.9%
Cumulative Subsidy
Amount $ - $41,217 $73,942 $97,047 $109,280 $109,280
Recommendation – Level Increase for five-years
29 Proposed Sewer Rates Schedule
Service Charges Volumetric Charges
Current
Rates 7/1/2023 7/1/2024 7/1/2025 7/1/2026 7/1/2027 Current Rates 7/1/2023 7/1/2024 7/1/2025 7/1/2026 7/1/2027
Residential ($ per Dwelling Unit)
Single Family $124.14 $128.44 $133.58 $138.93 $144.49 $150.27 Not ApplicableMulti-Family $95.34 $97.96 $101.88 $105.96 $110.20 $114.61 Mobile Home $78.28 $84.42 $91.05 $98.20 $105.91 $114.22 Institutional ($ per unit = 1 hundred cubic feet = 748 gallons) Schools/Colleges $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $9.99 $11.58 $12.04 $12.53 $13.04 $13.57 Commercial ($ per unit = 1 hundred cubic feet = 748 gallons) Motels/Hotels $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $5.75 $5.64 $5.88 $6.12 $6.37 $6.63 General Office $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $6.84 $6.92 $7.20 $7.49 $7.79 $8.11 City of Milpitas $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $5.80 $5.59 $5.82 $6.06 $6.31 $6.57 Service Stations $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $5.70 $5.61 $5.84 $6.08 $6.33 $6.59 Eat/Drink Establishments $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $9.06 $10.88 $11.32 $11.78 $12.26 $12.76 Convalescent Hosp/Daycare $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $5.60 $5.45 $5.67 $5.90 $6.14 $6.39 Personal Services, Laundries $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $5.31 $4.97 $5.17 $5.38 $5.60 $5.83 Electrical/Electronic $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $6.72 $6.82 $7.10 $7.39 $7.69 $8.00 Machinery Manufacture $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $8.43 $9.92 $10.32 $10.74 $11.17 $11.62 30 Sewer rate comparison for Single Family
Residence Bi-Monthly
Proposed rates and charges will be approximately $22 less than the average of similar public agency sewer systems. This comparison does not include any forthcoming rate increases from other sewer systems. 31 Sewer Bill Impact Summary
• A typical single-family residential household will experience and annual increase in their sewer bill of $25.80 in FY23/24
• Multi-family units will experience an annual increase in their sewer bill of $15.72 in FY 23/24
• Mobile-home units will experience an annual increase in their sewer bill of $36.84 in FY 23/24
• Institutional and all commercial accounts will experience an increase in their annual increase in their fixed charge of $11.40 while volume charges will either increase OR decrease slightly based on industry classification 32 Staff Recommendation
• Open Public Hearing and receive all written and verbal testimony regarding proposed rate increases
• Move to close the public hearing following all speakers • Receive a summary from the City Clerk of the number of written protests received and the number required for a majority protest • City Attorney shall read aloud the title of Ordinance No. 208.55 • If no majority protest exists, move to waive the first reading beyond the title and introduce Ordinance No. 208.55 to approve updated sewer rates for FY23/24 through FY27/28. Ordinance No. 208.55 is entitled: “AN ORDINANCE OF THE CITY OF MILPITAS AMENDING CHAPTER 2 OF TITLE VIII OF THE MILPITAS MUNICIPAL CODE RELATING TO SEWER SERVICE CHARGES.”
• Approve subsidy program for Mobile Home Park customer class. 33 Questions?
Thank you
City Utilities
Public Hearing to Consider Changes
to Sewer Rates and Charges for FY
23/24 through FY27/28
March 21, 2023
2 Agenda
Highlight Proposition 218 Requirements
Outreach
Sewer Utility Needs
Residential Bill Impacts
3 Proposition 218 - Summary
1. Charges shall not exceed the costs required to provide service. Revenues shall not be used for any purpose other than that for which the charge was imposed.
2. Requires local agencies imposing any new or any increases in any existing property-related fees and charges to comply with certain procedural requirements prior to their adoption.
Hold a public hearing
Provide ratepayers and property owners with a written notice of the proposed rate increases, and the date, time and location of the public hearing If a majority of parcels submit protests, the City cannot adopt the proposed rates.
4 Timeline
Date Meeting Action
December 6, 2022 City Council Council consideration to start Prop 218 process
January-February 2023 Community
Community Outreach to single
family residences, multi-family,
mobile homes and businesses
March 21, 2023 City Council
Public Hearing
Council consideration of proposed
rates
May 9, 2023 City Council FY 2023-24 Operating Budget
Study Session
June 6, 2023 City Council Public Hearing and FY 2023-24 Budget Adoption
July 1, 2023 Implementation of proposed rates and charges 5 Community Outreach
1. Community Open Houses
• February 9, 2023
• February 16, 2023
2. Chamber of Commerce Outreach
• February 23, 2023
3. Media
• Milpitas Matters
• Connected
• Facebook/Twitter/NextDoor
• Soofa Digital Display Boards
• Dedicated webpage: milpitas.gov/watersewer2023
6 • Milpitas Assistance Program
For more information contact: (408) 586-3405 or email [email protected]
7 Sewer Utility
8 Sewer – at a Glance
City is responsible for the collection of sewage, which is conveyed for treatment to the San Jose/Santa Clara Regional Wastewater Facility (RWF) Serves approximately 15,350 customer accounts
175 miles of pipeline and two pumping stations
Conveys an average rate of 6-7 million gallons per day to the RWF The cost to customers of the Sewer System for treatment at the RWF is determined by a master agreement between the City and the RWF
Treated water is released to the San Francisco Bay or recycled for industrial and irrigation purposes
9 Sewer Utility
CIP Projects to be Completed
Project Year of Construction Estimated Cost
Pipeline Replacement FY26 – FY28 $5.3 Million
Condition Assessment FY24 – FY28 $2.1 Million
Force Main A FY25 – FY26 $27.1 Million
SJ/SC Regional Wastewater Facility FY24 – FY28 $30.1 Million Master Plan Projects Scheduled for construction between FY 24-28 10 Force Main - A
11 Drivers of Sewer Rate Increase: Expenses
• 58% of anticipated revenues
go to San Jose for O&M and
treatment costs
• San Jose O&M costs
projected to increase 4%
annually from $7.3 million in
FY24 to $8.5 million in FY28
• San Jose treatment cost
contributions total $30 million
over a five year period
• Costs peak in FY26 as City
addresses FMA project
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
2023 2024 2025 2026 2027 2028
Sewer Utility Expense Plan
Operating Expenses San Jose O&M San Jose Capital
Existing Debt Service Proposed Debt Service Rate Funded Capital Revenue at Current Rates Revenue at Proposed Rates
12 Sewer Utility Fund Reserves Analysis
- No Rate Adjustments
Status Quo Financial Plan – Projected Ending Balances FY2028 estimated reserves Infrastructure reserves will begin
to be depleted in FY 2026 - $16
million of these reserves will be
exhausted in the last three years
Over 5 years, $30 million is
projected to be remitted to SJ for
City's 8% of the RWF CIP
City's ability to borrow to finance
FM-A could be jeopardized
13 Sewer Utility Fund Reserves Analysis
- Assumes Rate Adjustments
Proposed Financial Plan – Projected Ending Balances
FY2028 estimated reserves
• Capital Reserve for
Emergencies $5.2M at 100%
of target level
• Rate Stabilization $3.5M at
100% of target level
14 Proposed 5–Year Sewer Rates
Rate/Charges for Residential & Businesses
Bi-Monthly
Rate Schedule
FY 2023
(Current Rate) FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Annual % Change
Single Family $124.14 $128.44 $133.58 $138.93 $144.49 $150.27 4% Multi-Family $95.34 $97.96 $101.88 $105.96 $110.20 $114.61 4% Mobile
Home Parks * $78.28 $84.42 $91.05 $98.20 $105.91 $114.22 7.9% * Mobile Home Parks – proposed phase out of subsidy
15 Mobile Homes – Phasing out the Subsidy over
5 years
(Bi-Monthly Rates)
Mobile Homes
FY 2023
(Current Rate) FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Subsidized Rate $78.28 $84.42 $91.05 $98.20 $105.91 $114.22 $ Change $6.15 $6.63 $7.15 $7.72 $8.29
% Increase 7.9% 7.9% 7.9% 7.9% 7.9%
Cumulative Subsidy
Amount $ - $41,217 $73,942 $97,047 $109,280 $109,280
Recommendation – Level Increase for five-years
16 Proposed Sewer Rates Schedule
Service Charges Volumetric Charges
Current
Rates 7/1/2023 7/1/2024 7/1/2025 7/1/2026 7/1/2027 Current Rates 7/1/2023 7/1/2024 7/1/2025 7/1/2026 7/1/2027
Residential ($ per Dwelling Unit)
Single Family $124.14 $128.44 $133.58 $138.93 $144.49 $150.27 Not ApplicableMulti-Family $95.34 $97.96 $101.88 $105.96 $110.20 $114.61 Mobile Home $78.28 $84.42 $91.05 $98.20 $105.91 $114.22 Institutional ($ per unit = 1 hundred cubic feet = 748 gallons) Schools/Colleges $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $9.99 $11.58 $12.04 $12.53 $13.04 $13.57 Commercial ($ per unit = 1 hundred cubic feet = 748 gallons) Motels/Hotels $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $5.75 $5.64 $5.88 $6.12 $6.37 $6.63 General Office $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $6.84 $6.92 $7.20 $7.49 $7.79 $8.11 City of Milpitas $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $5.80 $5.59 $5.82 $6.06 $6.31 $6.57 Service Stations $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $5.70 $5.61 $5.84 $6.08 $6.33 $6.59 Eat/Drink Establishments $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $9.06 $10.88 $11.32 $11.78 $12.26 $12.76 Convalescent Hosp/Daycare $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $5.60 $5.45 $5.67 $5.90 $6.14 $6.39 Personal Services, Laundries $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $5.31 $4.97 $5.17 $5.38 $5.60 $5.83 Electrical/Electronic $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $6.72 $6.82 $7.10 $7.39 $7.69 $8.00 Machinery Manufacture $27.35 $29.25 $30.43 $31.65 $32.92 $34.24 $8.43 $9.92 $10.32 $10.74 $11.17 $11.62 17 Sewer rate comparison for Single Family
Residence Bi-Monthly
Proposed rates and charges will be approximately $22 less than the average of similar public agency sewer systems. This comparison does not include any forthcoming rate increases from other sewer systems. 18 Sewer Bill Impact Summary
• A typical single-family residential household will experience and annual increase in their sewer bill of $25.80 in FY23/24
• Multi-family units will experience an annual increase in their sewer bill of $15.72 in FY 23/24
• Mobile-home units will experience an annual increase in their sewer bill of $36.84 in FY 23/24
• Institutional and all commercial accounts will experience an increase in their annual increase in their fixed charge of $11.40 while volume charges will either increase OR decrease slightly based on industry classification 19 Staff Recommendation
• Open Public Hearing and receive all written and verbal testimony regarding proposed rate increases
• Move to close the public hearing following all speakers • Receive a summary from the City Clerk of the number of written protests received and the number required for a majority protest • City Attorney shall read aloud the title of Ordinance No. 208.55 • If no majority protest exists, move to waive the first reading beyond the title and introduce Ordinance No. 208.55 to approve updated sewer rates for FY23/24 through FY27/28. Ordinance No. 208.55 is entitled: “AN ORDINANCE OF THE CITY OF MILPITAS AMENDING CHAPTER 2 OF TITLE VIII OF THE MILPITAS MUNICIPAL CODE RELATING TO SEWER SERVICE CHARGES.”
• Approve subsidy program for Mobile Home Park customer class. 20 Questions?
Thank you