Item # 6
6/21/22
City Council
Meeting
CITY OF Item # 6. RTC 22-66: Public
Hearing: Action on
1852 Resolutions Approving
THE MISSION CIT Water, Sewer, and Recycled
Water for Fiscal Year 2022-
2023
June 21, 2022
1 City of
Santa Clara
The Center of What's Possible
Our Utilities
• Water
- 26,000 connections, 335 miles of mains, 21 active
groundwater wells, 7 storage tanks with a capacity of over 28MG
• Sewer
- 26,000 connections, 288 miles of mains, co-owner of
Regional Wastewater Facility (RWF) with San José
• Recycled Water
- 282 connections, approx. 19% of total water sales in
summer months
2 POST MEETING MATERIAL
1 City of
Santa Clara
The Center of What's Possible
Water Utility CIP
• $22.5 million budgeted
over next 5 years
• Largest expenditures
over the next 2 years
include New and
Replacement Wells and
Water Main Replacement
3 City of
Santa Clara
The Center of What's Possible
Water Utility CIP (cont.)
4 2
City of
Santa Clara
The Center of What's Possible
Sewer Utility CIP
• $92.2 million over the next 5 years, $76.5 million
of which is City's contribution to CIP at RWF.
• Other projects include: Condition Assessment,
System Improvements and Capacity
Improvements
5 City of
Santa Clara
The Center of What's Possible
Sewer Utility CIP (cont.)
3 City of
Santa Clara
The Center of What's Possible
Wholesale Water Rates
• SFPUC Adopted 15.9% rate increase for FY22-23
and 10% Increase in FY23-24
• Valley Water adopted 15% Increase in
Groundwater Charges Each Year for the Next
Three Fiscal Years.
• Water Purchases Represent Almost 65% of
overall Expenditures
7 City of
Santa Clara
The Center of What's Possible
Proposed Water Rates
• 9.6% Increase in Consumption Charge per HCF ($6.69 to $7.33)
• $7.68/Month Increase from $80.28 to $87.96 (average
Residential Customer Using 12 HCF/month)
• Average Increase of 5.0% to Minimum Charges
Depending on the Size of the Meter
8 4
City of
Santa Clara
The Center of What's Possible
Proposed Recycled Water Rates
• 10.2% Increase in Consumption Charge per HCF ($3.74 to $4.12)
• Recycled Water Purchases Represent Almost 85% of
Overall Expenditures
• Cost Still Represents Savings of Almost 45% Over Potable Water
9 9
City of
Santa Clara
The Center of What's Possible
Proposed Sewer Rates
• 5.2% Increase in Single Family Residential Charge (0.4% Increase in Multi-Family Residential Charge)
• $2.29/Month Increase from $44.53 to $46.82 for SFR (
$.16/Month Increase for MFR - $44.53 to $44.69)
• Average increase of 4.0% for Commercial Customers
Receiving an Increase (Actual Change Dependent on
Customer Class)
10 5
City of
Santa Clara
The Center of What's Possible
Water and Sewer Rate Comparison
$250.00
$200.00
$150.00
Monthly Bill
$100.00
$50.00
$0.00
Santa Clara Santa Clara San Jose Mountain
Sunnyvale SJWC Milpitas Palo Alto
Current View
Proposed Proposed Proposed Proposed Proposed Proposed
Proposed
• WATER RATE 12 HCF $80.28 $87.96 $104.43 $78.71 $157.52 $106.99 $110.41 $152.04 • SEWER RATE $44.53 $46.82 $45.49 $55.52 $45.49 $50.10 $62.07 $44.62 •COMBINED $124.81 $134.78 $149.92 $134.23 $203.01 $157.09 $172.48 $196.66 11 11
City of
Santa Clara
The Center of What's Possible
Utility Bill Assistance
• Water & Sewer Low Income Rate Assistance
• Help Your Neighbor Investment
• State Assistance for Past Due Water and Sewer
Bills
12 12
6 City of
Santa Clara
The Center of What's Possible
Recommendation
• At the close of the Public Hearing, if the protests from property owners are not a majority:
- Adopt the Resolution Approving Water Rate Schedule 2022- 01 and Recycled Water Rate Schedule 2022-02 for City
Water Service Rates to be Effective July 1, 2022.
- Adopt the Resolution Approving Sewer Rate Schedule S-22 for City Sewer Service Rates to be Effective July 1, 2022 13 13
City of
Santa Clara
The Center of What's Possible
CATA CLARADEL
1852
THE MISSION CITY
14 14
City of
Santa Clara
The Center of What's Possible
Ten Year Rate Trend
Fiscal Water Sewer
Year Increase % Increase % Previous Drought_
20.00%
21-22 4% 0%
18.00%
20-21 3.4% 1%
19-20 4% 2.7% 16.00%
18-19 5.1% 3%
17-18 14.00%
15% 0% Sewer Water
16-17 18.9% 9.8% Air Proposed
1- 12.00%
15-16 9.5% 9.5%
14-15 12% 5% 10.00%
13-14 7% 13%
8.00%
12-13 6% 0%
6.00%
10 Year
4.00%
Avg. 8.5% 4.4%
2.00%
22-23
12-13 0.00%
Proposed 9.6% 5.2% 13-14 14-15 15-16 16-17 17-18 18-19 19-20 21-22 20-21 22-23
15 15
City of
Santa Clara
The Center of What's Possible
Rate Mitigation Strategies
• Cost Controls and Realistic Budgets
• Use of Reserves
• Use of Fund Balances to Fund CIPs Instead of
Operating Transfers
16 16
8 City of
Santa Clara
The Center of What's Possible
Water Sources
19.9%
CITY OF SFPUC
SUNNYVALE Pan Tar
CENTEALEXA
57.7%
Groundwater
EL CANNO REAL
HOMESTEAD
CITYAR
22.4% SCVWD SANJOSE
LILYENS CREEK RIVE
17 17