CITY OF SAN MATEO
City Council Special Meeting
April 3, 2023
5:30 PM
City Hall Council Chamber
Entrance is on O’Farrell Street
COUNCIL MEMBERS
Amourence Lee, Mayor
Lisa Diaz Nash, Deputy Mayor
Rich Hedges
Adam Loraine
Rob Newsom Jr.
AGENDA
THIS MEETING CAN BE ATTENDED IN PERSON OR REMOTE BY JOINING ZOOM – SEE CODES BELOW.
PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND REMOTEL Y.
SEE END OF AGENDA FOR OPTIONS AND INSTRUCTIONS ON HOW TO PARTICIPATE IN THE MEETING.
To join via Zoom – click here:
April 3, 2023
To join via telephone: (408) 638-0968
Webinar ID: 862 3180 5315 Passcode: 149305
CALL TO ORDER
Roll Call
STUDY SESSION
The public will have an opportunity to comment during the consideration of these items.
1. Clean Water Program Update and Sewer Rate Increase
Receive a presentation on the status of the Clean Water Program and provide feedback on a proposed five-year sewer rate structure and draft Proposition 218 Notice to increase sewer rates.
CEQA: This study session is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
CLOSED SESSION
The public will have an opportunity to comment before the consideration of these items. Following the meeting a report of action from Closed Session will be provided if required.
2. Conference with Labor Negotiators (Government Code Section 54957.6) City designated representatives: Stacey Cue, Teresa Abrahamsohn, Rich Lee, and Yumi Maeda Employee Organization: San Mateo Safety Management Association
ADJOURNMENT
----------------------------------------------------------------------------------------------------------------------------- AGENDAS:
Agendas and material are posted on the City’s website on the Friday preceding each Council Meeting and can be viewed on the City's website at
www.cityofsanmateo.org
. Any supplemental material distributed to the Council after the posting of the agenda will be made part of the official record.
WATCHING A MEETING ON TV:
City Council meetings are broadcast live on Comcast/channel 27, Wave/channel 26, or AT&T/channel 99.
For transmission problems during the broadcast, please call (650) 522-7099. For all other broadcast comments, call (650) 522-7040, Monday-Friday, 8 a.m. - 5 p.m.
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WATCHING A MEETING ON A COMPUTER:
There are three ways to stream.
1) Public Meeting Portal
www.cityofsanmateo.org/publicmeetings
2) City YouTube channel and stream it on YouTube:
http://youtube.com/CityofSanMateo
3) Watch TV live stream:
https://www.cityofsanmateo.org/193/Channel-San-Mateo-Live-Stream
PUBLIC COMMENTS/REQUEST TO SPEAK
Prior to the Meeting
Send comments to:
[email protected]
until 4 p.m. the day of the meeting.
During the meeting
By Zoom:
Click the link at the top of the agenda and you’ll be added to the meeting. All attendees are muted by default. When the item of interest is open for consideration, select the “Raise Your Hand” icon and you will be called on at the appropriate time.
By telephone:
Call (408) 638-0968 and enter the conference ID found at the top of the meeting agenda. When the item of interest is open for consideration, select *9 to raise your hand. When called upon, press *6 to unmute, state your name and provide your comments.
In Person:
At the meeting complete a “Request to Speak” form, submit a request at the speaker kiosk or scan the QR code.
ACCESSIBILITY:
In compliance with the Americans with Disabilities Act, those with disabilities requiring special accommodations to participate in this meeting may contact the City Clerk’s Office at (650) 522-7040 or [email protected]
. Notification 48 hours prior to the meeting will
enable the City to make reasonable arrangements to ensure accessibility to this meeting.
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CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 1 Section Name: STUDY SESSION Account Number: 72-4691 File ID: 23-7298 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Public Works Department
MEETING DATE: April 03, 2023
SUBJECT:
Clean Water Program Update and Sewer Rate Increase
RECOMMENDATION:
Receive a presentation on the status of the Clean Water Program and provide feedback on a proposed five-year sewer rate structure and draft Proposition 218 Notice to increase sewer rates.
BACKGROUND:
Clean Water Program
The City is currently under a Regional Water Quality Control Board Cease and Desist Order and National Pollutant Discharge Elimination System permit requiring improvements to its sanitary sewer collection system and the wastewater treatment plant (WWTP) to prevent sanitary sewer overflows and discharges of untreated or partially treated wastewater.
The Clean Water Program (CWP) consists of a series of projects to upgrade and replace aging infrastructure, increase system capacity to prevent sanitary sewer overflows, and meet current and future regulatory requirements for wastewater treatment. The CWP is a capital intensive 10-year effort that began in 2015 and is estimated to cost nearly $1 billion through fiscal year 2025-26. Significant sewer rate increases were required to fund the CWP.
Sewer Rates
On March 5, 2018, Council adopted a multi-year sewer rate increase and rate restructure for fiscal years 2018-19 through 2022-23. As part of the 2018 rate restructuring, the City moved from charging solely based on volumetric usage to a hybrid volumetric/fixed-fee structure, which helped stabilize revenue. The rate restructuring, in addition to approving a multiyear rate increase, allowed the City to finance the CWP through bonds and obtain low-interest federal Water Infrastructure Finance and Innovation Act (WIFIA) and State Revolving Fund loans.
As part of a study session held in April 2022, Council supported a future multi-year rate sewer rate schedule with inflationary-level increases to ensure sufficient revenue to fund ongoing operating and maintenance costs and capital improvement projects. Staff worked with the City’s sewer rate consultant, Bartle Wells, to determine recommended sewer rates for meeting the City’s ongoing needs. The proposed sewer rate schedule for fiscal years 2023-24 through 2027-28 is shown in Attachment 1, which includes a maximum 3% increase in rates for each of the five fiscal years. Staff is seeking feedback from Council on the proposed rate structure. A comparison of the City’s fiscal year 2022-23 sewer rates with other sewer agency rates in San Mateo County is included in Attachment 2.
Compliance with Proposition 218
Proposition 218 requires the City to mail a written notice of any proposed sewer rate increases to affected property owners at least 45 days prior to a scheduled public hearing, during which time, property owners may submit written protests opposing proposed rate increases. A draft of this notice is shown in Attachment 3. At the public hearing, currently scheduled for June 5, 2023, Council will consider all protests related to the proposed rates. If a majority of parcel owners
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CITY OF SAN MATEO
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protest the rate increases, the new rate structure cannot be approved. Typically, staff has requested Council approval of the Proposition 218 Notice prior to issuance; however, on this occasion, staff is requesting feedback on a draft notice to enable mailing in time for a public hearing in June. Staff will incorporate any feedback from Council on the draft Proposition 218 notice prior to mailing to all property owners within the City.
Next Steps
After receiving feedback from Council, the Proposition 218 Notice will be finalized and distributed, initiating the rate setting process for the coming fiscal years. In order to provide a minimum 45-day review period, the required Proposition 218 public hearing is tentatively scheduled for the June 5, 2023 City Council regular meeting, at which time the Council will determine whether a majority of parcel owners protest the proposed rate increases. In addition, the Municipal Code requires sewer service charges be established by ordinance. Assuming there is not a majority protest, introduction of the ordinance will also occur at the June 5, 2023 meeting. Council will then consider adopting the ordinance after a second reading on June 20, 2023, establishing the new sewer service rates that will be effective thirty days later. As such, the proposed new rate structure for fiscal year 2023-24, if approved, will be effective August 1, 2023, with each subsequent fiscal year’s rates starting on July 1.
BUDGET IMPACT:
There is no budgetary impact associated with this recommendation. Proposed rate structures and rate increases will be presented to Council during the study session as preliminary values. Input received from Council at this study session will be used to refine various parameters in preparation for the formal sewer rate setting process.
ENVIRONMENTAL DETERMINATION:
This study session is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - Current and Proposed Maximum Sewer Rates by User Class Att 2 - FY 2022-2023 Sewer Rate Survey within San Mateo County Att 3 - Draft Proposition 218 Notice of Proposed Sewer Rate Increase
STAFF CONTACT
Azalea Mitch, Director of Public Works
[email protected]
(650) 522-7303
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Attachment 1 – Current and Proposed Maximum Sewer Rates by User Class
Current Aug 1 July 1 July 1 July 1 July 1
Rates 2023 2024 2025 2026 2027
Rate Increase % 3% 3% 3% 3% 3%
RESIDENTIAL
Fixed Monthly Charge
Charge per dwelling unit $60.14 $61.94 $63.80 $65.71 $67.68 $69.71 Sewer Usage Charge
Rate per hundred cubic feet ($/hcf) of annualized average monthly winter water use.
Class A Residential $11.80 $12.15 $12.51 $12.89 $13.28 $13.68
COMMERCIAL
Sewer Usage Charge
Rate per hundred cubic feet ($/hcf) of annualized average monthly winter water use.
Class B Standard Strength $23.60 $24.31 $25.04 $25.79 $26.56 $27.36 Class C Moderate Strength 31.00 31.93 32.89 33.88 34.90 35.95 Class D High Strength 42.04 43.30 44.60 45.94 47.32 48.74 Class E A limited number of accounts are billed on a case-by-case basis.
Minimum Monthly Charge $60.14 $61.94 $63.80 $65.71 $67.68 $69.71 Commercial bills are subject to the minimum monthly charge.
Note: 1 hcf = one hundred cubic feet, equal to 748 gallons.
Class B includes professional offices, retail stores, and other standard strength commercial accounts.
Class C includes hotels & motels with food preparation facilities, industrial laundries, supermarkets with food preparation facilities, and other moderate strength accounts.
Class D includes restaurants, wholesale bakeries, mortuaries, and other high strength accounts.
Average monthly winter water use is based on the average of metered water use from the prior November through March, excluding months with no billable usage.
The City determines the appropriate sewer rate class for each customer.
Proposed Maximum Sewer Rates
Proposed Maximum Rates Effective on or After
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Att 2 – FY 2022/2023 Sewer Rate Survey within San Mateo County
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Comments and Written Protests
Any affected property owner may submit a
written protest to the proposed increase to
the sewer rates; provided, however, only
one protest will be counted per parcel. Each
protest must (1) be in writing; (2) state that
the identified property owner opposes the
proposed increases to the sewer rates; (3)
identify the parcel for which the protest is
made (by assessor’s parcel number or street
address); and (4) include the signature of the
property owner. Protests submitted by e-mail,
facsimile, or other electronic means will not be
counted. Written protests may be submitted by
mail to the City Clerk at 330 W. 20th Avenue,
San Mateo, CA 94403 or at the public hearing,
so long as the protests are received before
the public hearing ends. Please identify on
the envelope for any written protest, whether
mailed or submitted in person to the City Clerk,
that the enclosed written protest is for the Public
Hearing on the Proposed Sewer Rate Increase.
During the public hearing, the City Council
will hear all public testimony and consider
a l l written protests. At the conclusion of the
public hearing, the City Council will decide
whether to adopt the proposed sewer rates.
Oral comments at the public hearing will not
qualify as formal protests unless accompanied
by a written protest, but the City welcomes
your input. If, at the end of the public hearing,
written protests against the proposed increases
to the sewer rates are not presented by a
majority of affected property owners of the
identified parcels, the City Council will be
authorized to adopt the rates.
Need More Information? Please visit our
website, CleanWaterProgramSanMateo.org.
For questions, call (650) 727-6870 or email info@
CleanWaterProgramSanMateo.org.
Notice of Public Hearing
on Proposed Sewer Rate
Increases
This notice is being sent to inform you that the
City of San Mateo is proposing to increase
sewer rates over the next five years in order
to a) continue constructing a new wastewater
treatment plant to replace the City’s aging
treatment facility, b) fund legally-required
improvements to the City’s sewer collection
system to address regulatory requirements and
minimize potential for sanitary sewer overflows,
c) fund ongoing rehabilitation of aging sewer
pipelines, and d) keep rates aligned with the
cost of providing sewer service for fiscal year
(FY) 2023-24 to FY 2027-28. The rates reflect
maximum annual rates over the five-year
period.
In compliance with Article XIIID of the California
State Constitution and the Proposition 218
Omnibus Implementation Act, the City is
notifying all affected property owners of a
Public Hearing to accept public comment
& testimony on the proposed sewer rate
increases:
Date: June 5, 2023 at 7:00 p.m.
San Mateo City Hall,
Council Chambers
330 W. 20th Avenue
San Mateo, CA 94403
CITY OF SAN MATEO
CITY CLERK
330 WEST 20TH AVENUE
SAN MATEO, CALIFORNIA 94403-1388
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Why the Rate Increases Are Needed
Specifically, the proposed rate increases will enable the City to generate the funding needed to:
• Continue construction and long-term financing of the City’s aging wastewater treatment plant
The City’s existing wastewater treatment plant includes several facilities which have reached the end of useful life.
The treatment plant is being rebuilt to ensure the City can continue to provide high-quality service and meet new
regulatory requirements to protect San Francisco Bay.
• Construct critical improvements to the City’s sewer
collection system to meet regulatory requirements, prevent sanitary sewer overflows, and replace aging pipelines
The City needs to address increased regulatory
requirements and issues associated with sanitary sewer
overflow prevention, including construction of relief sewer lines and facilities necessary to prevent overflows during heavy rains, as well as increased cleaning, inspection, and rehabilitation of the existing collection system.
• Keep rates aligned with the cost of providing service Pay for the increases in annual operating and maintenance expenses required to meet the City’s regulatory permit
requirements, fund increasing annual debt service
requirements, and keep revenues aligned with the costs of providing wastewater service.
Methodology Used to Calculate the Proposed Rates
The proposed sewer rates are based on a cost-of-service analysis that includes a) financial projections to identify future wastewater system funding needs, and b) apportionment
of costs and development of rates for each customer class based on factors including the volume and strength of
wastewater discharge.
The proposed rates are designed to recover the costs of providing sewer service to each parcel.
Proposed Sewer Rates
The following table shows current and proposed sewer
rates. Residential rates include two components:
1) A Fixed Monthly Charge per residential dwelling unit that is billed independent of usage, and 2) Sewer Usage Charges billed based on metered water usage. Commercial and non- residential customers will continue to be billed Sewer Usage Charges based on customer class and metered usage,
subject to a minimum charge. Residential and commercial Sewer Usage Charges are based on metered water usage
from the preceding November through March time period
(when there is minimal outdoor irrigation) and levied per hundred cubic feet (CCF). One CCF equals approximately
748 gallons.
The City’s current sewer rates for a typical residential customer are in the middle range compared to other
regional agencies in San Mateo County. The rates for fiscal years 2023-24 through 2027-28 reflect the maximum annual rate increase proposed under this Proposition 218 notice.
The City will review the rates each year and determine the actual annual increase up to these maximums.
Approved sewer rates for 2023-24 would be effective August 1 and effective July 1 for each subsequent fiscal year under the proposed rate structure. Please note sewer charges for most customers are billed annually on the property tax bill.
Sample Bill Calculations
Sample Residential Monthly Sewer Charge
Effective August 1, 2023
The following shows how the sewer service charge would be calculated for a typical Class A residential dwelling unit with 5 CCF average monthly winter water use:
Nov Dec Jan Feb Mar Average
Water Use (CCF) 5 6 4 4 6 5.0
Bill Calculation
Proposed Sewer Rates
Sample Commercial Monthly Sewer Charge
Effective August 1, 2023
The following shows how the sewer service charge would be calculated for a Class B – Standard Strength commercial customer with 10 CCF average monthly winter water use:
Nov Dec Jan Feb Mar Average
Water Use (CCF) 12 9 10 11 8 10.0
Bill Calculation
Sewer Usage Charge Total Monthly Charge
$24.31 x 10.0 units = $243.10 $243.10
Need Your Water Usage Information? California Water Company customers may view their consumption history online at https://www.
CalWater.com/. Customers of other water providers should refer to their water bills to determine consumption or contact the provider directly.
Effective Date
Current Rate Aug 1 2023 July 1 2024 July 1 2025 July 1 2026 July 1 2027 Residential
Fixed Monthly Charge (Charge per dwelling unit)
$60.14 $61.94 $63.80 $65.71 $67.68 $69.71
Sewer Usage Charge (Rate per hundred cubic feet ($/CCF) of annualized average monthly winter water use) Class A Residential $11.80 $12.15 $12.51 $12.89 $13.28 $13.68 Commercial
Sewer Usage Charge (Rate per hundred cubic feet ($/CCF) of annualized average monthly winter water use) Class B Standard Strength $23.60 $24.31 $25.04 $25.79 $26.56 $27.36 Class C Moderate Strength $31.00 $31.93 $32.89 $33.88 $34.90 $35.95 Class D High Strength $42.04 $43.30 $44.60 $45.94 $47.32 $48.74 Class E A limited number of accounts are billed on a case-by-case basis based on sewer rates in effect.
Minimum Monthly Charge (Commercial bills are subject to the minimum monthly charge) $60.14 $61.94 $63.80 $65.71 $67.68 $69.71
Fixed
Monthly
Charge
Sewer Usage Charge
Total Monthly Charge
$61.94 $12.15 x 5.0 units = $60.75 $61.94 + $60.75 = $122.69
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San Mateo City Council Study SessionApril 3, 20231
Clean Water Program Update and Sewer Rate Increase
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•Clean Water Program Update•Future Wastewater System Needs•Sewer Rate Analysis•Next Steps and Council Feedback 2 Agenda
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Wastewater System•Wastewater conveyance and treatment•230 miles of sewers, 27 pump stations, wastewater treatment plant•Service area:•Customers: Hillsborough, San Mateo County, Crystal Springs Sanitation District•Partner: Foster City•Population: 150,000
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Clean Water Program –Drivers and Goals•Cease and Desist Order (CDO) R2-2009-0020•Issued in 2009 to the City of San Mateo, Town of Hillsborough, and the Crystal Springs County Sanitation District •Requires the elimination of sanitary sewer overflows (SSOs) •Goals•Fix Aging Infrastructure•Add System Capacity•Wet weather SSOs•Meet Future Regulatory Requirements•Nutrient limits
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Clean Water Program
5 •~$1 billion, 10 year effort•Wet Weather Management•Collection System Rehabilitation and Capacity Improvements•WWTP Upgrades•Nutrient Removal•Anticipated completion in Fiscal Year 2025/2026
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Status of CWP Capacity ImprovementsCOLOR LEGENDProjects CompletedProjects in ConstructionProjects in Design/PlanningNotes:Some project segments were eliminated due to design optimizations.Status of projects shown as of March 2023.
Rev. 03/03/2022
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Underground Flow Equalization System (UFES)•Largest Collection System Project•5.3 MG Flow Equalization Facility used to divert and temporarily store wet weather flows•Approximately $60 Million Construction Contract 7 DelawareSt.
Saratoga Dr.
San Mateo County Event CenterUnderground Structure
Diversion SewerForce Main
25thAve.
Diversion Structure
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Underground Flow Equalization System (UFES)
Poplar Ave
W Hillsdale Blvd
S. Delaware St.
HWY 101
Norfolk St.
S. El Camino Real
Historical and Modeled SSO Locations
= SSO
High SSO Activity on Delaware St
During Heavy Rain
After Heavy Rain
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Underground Flow Equalization System2020: Mobilization and Site Clearing 9 San Mateo County Event Center
Saratoga Drive
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Underground Flow Equalization System2021: Shoring and Excavation 10 Saratoga Drive
San Mateo County Event Center
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Underground Flow Equalization System2022: Concrete Foundation, Columns, and Walls and Electrical Building 11 Saratoga Drive
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Underground Flow Equalization SystemMarch 2023: Concrete Roof Deck 12 Saratoga DriveSan Mateo County Event Center
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WWTP Upgrade & ExpansionLargest WWTP ProjectApproximately $470 Million Construction Contract 13 21 of 56
14 WWTP Upgrade and Expansion Project -Objectives
Expansion -Treatment Process Facility
Existing WWTP
East 3rd Ave.
Detroit
Dr.
SF Bay
•Replace the existing liquids treatment process with a new facility:•Headworks, primary sedimentation, secondary treatment (biological nutrient removal), tertiary (membrane bioreactors), equalization basins•Achieve early actor status on nutrient removal•Increase wet weather management to 78 million gallons per day•Title 22 effluent ready / Future recycled water
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16 WWTP Upgrade & Expansion, Camera 1, May 2020
Shoring and Excavation
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17 WWTP Upgrade & Expansion, Camera 1, May 2021
Piles and Foundation
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18 WWTP Upgrade & Expansion, Camera 2, Oct 2021
Process Facilities
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19 WWTP Upgrade & Expansion, Camera 1, Nov 2021
Piles and Foundation
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20 WWTP Upgrade & Expansion, Camera 1, March 2023
Process Facilities
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21 WWTP Upgrade & Expansion, Camera 2, March 2023
Process Facilities
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22 WWTP Upgrade & Expansion, Camera 4, March 2023
Process Facilities Administration Building
SF Bay
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Clean Water Program Schedule Highlights
2323
RecurringCollection System Rehabilitation and I/I Reduction WWTP & Collection System Capacity Improvements Start WWTP Upgrade & Expansion Construction2019 WWTP Upgrade & Expansion Project Closeout2025 Start UFES Construction2020UFES Project Closeout2023
Clean Water Program Closeout2026
20192020202120222023202420252026
WWTP Upgrade & Expansion Substantial Completion2024Clean Water Program Start2015
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CWP Estimated Costs at Completion (Planning, Design, Construction)DescriptionBaseline Budget Estimate at CompletionVarianceStartEndClean Water Program$991,110,289$972,368,700$18,741,589October 2014June 2026WWTP Upgrade & Expansion$532,708,966$551,538,383($18,829,417)March 2015June 2025•Utilities –CalWater, PG&E•Pipeline conflicts•Building and special inspections•Added scope: Title 22, concrete repairs•Design gaps•Insurance Notes: Values shown are based on available cost data as of February 23, 2023.Costs include project initiation, planning, project management, procurement, program controls, financial management, right ofway acquisition, engineering, environmental/permitting, construction, construction management/inspection, public outreach, startup, commissioning, and closeout.
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Operation & Maintenance •Increased utility costs for UFES and WWTP•Repair and replacement of equipment•WWTP Maintenance staffing •Regulatory compliance Capital Improvements•On-going sewer collection repair and replacement•On-going WWTP improvements •Future energy recovery 25 Sewer Rates and Future Needs
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26 Sewer Finances and RatesnSewer utility is a financially self-supporting enterprisenRates are the main source of revenue and need to be set at adequate levels to support operations, maintenance, debt service and capital improvement funding needsnCity has provided strong financial management via proactive financial planning and multiyear phase-in of substantial sewer rate increasesnCity successful in obtaining low-interest rate financing from WIFIA & SRF and Bonds resulting in significantly lower debt service than initially estimatednFinancial projections from prior years assumed 2 more years of 12% rate increases followed by ongoing 3% -4% annual rate adjustmentsnUpdated financial projections indicate no need for additional 12% rate increasesnHowever, City is facing modest future cost increases that will require some rate increases
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27 Modest Financial HeadwindsnSmaller annual inflationary rate increases needed to:ØFund increased operating expenses, including costs for operating the new wastewater treatment plant & increased costs for maintenance & equipment replacementØPay debt service (which escalates in future years) & meet debt coverage requirementsØSupport ongoing capital improvement needs of City’s aging collection systemØKeep up with cost inflation (utilities, staffing, insurance, chemicals, etc.)nProposed maximum sewer rate increases = 3% per year for next 5 yearsnIf adopted, City retains ability to defer or reduce rate increases any year if financially feasible
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28 Sewer Rate HistoryØCity’s sewer rates historically 100% volumetricØMinimal to no rate increases in the 1990sØCity began phasing in annual rate increases starting in early 2000sØMajor drought from 2013-2016 resulted in permanent decline in billed usageØReduction in billed usage from 2013-2016 substantially offset rate increases ØRate increases over past 6 years supported financing for Clean Water ProgramØCity transitioned residential rates to 50% fixed rate recovery starting 2018/19
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29 Current Aug 1 July 1 July 1 July 1 July 1
Rates 2023 2024 2025 2026 2027
Rate Increase % 3% 3% 3% 3% 3%
RESIDENTIAL
Fixed Monthly Charge
Charge per dwelling unit $60.14 $61.94 $63.80 $65.71 $67.68 $69.71 Sewer Usage Charge
Rate per hundred cubic feet ($/hcf) of annualized average monthly winter water use.
Class AResidential $11.80 $12.15 $12.51 $12.89 $13.28 $13.68
COMMERCIAL
Sewer Usage Charge
Rate per hundred cubic feet ($/hcf) of annualized average monthly winter water use.
Class BStandard Strength $23.60 $24.31 $25.04 $25.79 $26.56 $27.36 Class CModerate Strength 31.00 31.93 32.89 33.88 34.90 35.95 Class D High Strength 42.04 43.30 44.60 45.94 47.32 48.74 Class EA limited number of accounts are billed on a case-by-case basis.
Minimum Monthly Charge $60.14 $61.94 $63.80 $65.71 $67.68 $69.71 Commercial bills are subject to the minimum monthly charge.
Proposed Maximum Sewer Rates Effective
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32 WWTP Upgrade & Expansion –Construction Photos
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34 Rate San Mateo Foster City Total %
2021 WIFIA Loan: WWTP 1.32% $204.0 $64.8 $268.8 27.6%
2021 WIFIA Loan: Basin 2/3 1.31% 76.6 0.0 76.6 7.9%
2022 SRF Loan 0.80% 104.3 33.0 137.3 14.1%
2019 Revenue Bonds Est 2.7% 282.8 40.1 322.9 33.2%
Cash (est) 147.5 19.3 166.7 17.1%
Total Sources 815.1 157.3 972.3 100.0%
WIFIA Loan project construction to be funded on an interim basis with Notes at 0.40%.
San Mateo allocation includes subregional agencies.
Projected CWP Sources of Funding ($ Millions)
nCity successful in obtaining $483 million in low-interest rate funding from WIFIA and SRF financing programs; locked in when interest rates were lownNet interest rate on combined CWP debt financing (WIFIA/SRF/Bonds) = 1.91% (All-In TIC)nCity’s share of debt service phases into a maximum of approximately $37.7 million (including about $2.7 million of prior debt)nPrior estimates assumed bond funding at 5% with max annual debt service of $51 million
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35 WWTP Upgrade & Expansion –Construction Photos
Debt service phases in for WIFIA WWTP Loan to facilitate gradual future sewer rate increases.
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37 Proposed Schedule and Next StepsApril 3Council Study Session: Receive input and Council directionApril 21Proposition 218 Notice: Mail Notices of proposed rates to all affected)property owners (must be mailed at least 45 days prior to Public Hearing)June 5City Council Meeting: Ordinance Introduction, Public Hearing & Council consideration of proposed rates(rate increases subject to “Majority Protest” process)June 20City Council Meeting: Second reading and final adoption of ordinanceAugust 1New sewer rates become effective August 1, 2023 and on July 1 of subsequent years
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Council Direction Needed•Does the Council have feedback on the proposed 5-year sewer rate increases?
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Thank YouAzalea MitchPublic Works [email protected] HandlersBartle WellsPrincipal and Vice [email protected]
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45 WWTP Upgrade & Expansion, Camera 1, May 2022
Process Facilities
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46 WWTP Upgrade & Expansion, Camera 2, April 2022
Process Facilities
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47 WWTP Upgrade & Expansion, Camera 3, Nov 2021
Process Facilities
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48 WWTP Upgrade & Expansion, Camera 3, July 2022
Process Facilities
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49 WWTP Upgrade & Expansion, Camera 4, Oct 2021
Administration Building
Process FacilitiesExisting WWTP Facilities
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50 WWTP Upgrade & Expansion, Camera 4, Jan 2022
Administration BuildingProcess Facilities
SF Bay
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51 WWTP Upgrade & Expansion, Camera 4, Aug 2022
Administration Building
Process Facilities
SF Bay
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52 WWTP Upgrade & Expansion, Camera 3, March 2023
Process Facilities
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Operations•Sewer System Operations and Maintenance•Wastewater Treatment Plant•Regulatory Compliance•Engineering and Administrative Services Capital Improvements•Clean Water Program •Collection System Improvements•Wastewater Treatment Plant Improvements 53 What Do Sewer Rates Fund?
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