6/6/2023 Item #7
City Council
Meeting
Item #7: RTC 23-447
Public Hearing: Action on
140/
Resolutions Approving
1852
THE MISSION CIT Water, Sewer, and Recycled
Water Rates for Fiscal Year
2023-2024
June 6, 2023
City of
Santa Clara
The Center of What's Possible
Timeline
• April 10-11: Council Briefings
• April 11: Proposition 218 Notices Mailed
• June 6: Public Hearing
• July 1: If Approved by Council, Rates Become Effective 2 POST MEETING MATERIAL
1 City of
Santa Clara
The Center of What's Possible
Our Utilities
• Water
~26,000 connections, 335 miles of mains, 19 active
groundwater wells, 7 storage tanks - capacity of over 28MG • Sewer
~26,000 connections, 288 miles of mains, 7 pump stations, co-owner of Regional Wastewater Facility (RWF) with San José
• Recycled Water
361 connections, approx. 18% of total water sales in summer months 3
3 City of
Santa Clara
The Center of What's Possible
Award Winning Utilities
CALIFORNIA
WATER ENVIRONMENT ASSOCIATION
and its
Santa Clara Valley Section
CO CMUA present to
City of Santa Clara Water
Resource Efficiency & & Sewer Utilities
Community Service Award
lu later Procran
once Shity Alcujert of the Wear
Collection System of the Year Medium
City of Santa Clar UTILITIES - SS TO $25 MILLION
2020
SERRA TANKS REHABILITATION PROJECT
Brocket Perme
CrY oF SANTA CLARA
NV S
CWEA 2023
Mry 2021 Chete Presides
4 2
City of
Santa Clara
The Center of What's Possible
Water Utility CIP
• $20.3 million budgeted
over next 5 years
• Largest expenditures
over the next 2 years
include Water Main
Replacement, Well
Rehabilitation, and
Facility Improvements
5 City of
Santa Clara
the contero that Possible
Water Utility CIP (cont.)
6 City of
Santa Clara
The Center of What's Possible
Sewer Utility CIP
• $607.0 million over the next 5 years, $98.0 million
of which is City's contribution to CIP at RWF.
• Other projects include: Condition Assessment,
System Improvements and Capacity Improvements
7 7
City of
Santa Clara
The Center of What's Possible
Sewer Utility CIP (cont.)
City of
Santa Clara
The Center of What's Possible
Wholesale Water Rates
• SFPUC Adopted 9.7 % rate increase for FY23-24
• Valley Water adopted 14.5% Increase in
Groundwater Charges for FY23-24. Similar
increases are forecast in coming years
• Water Purchases Represent Almost 65% of overall
Expenditures
9 City of
Santa Clara
The Center of What's Possible
Proposed Water Rates
8.7% Increase in Consumption Charge per HCF ($7.33 to
$7.97)
$7.68/Month Increase from $87.96 to $95.64 (average
Residential Customer Using 12 HCF/month)
• Average Increase of 5.9% to Minimum Charges
Depending on the Size of the Meter
10 10
5 City of
-AH:
Santa Clara
The Center of What's Possible
Proposed Recycled Water Rates
• South Bay Water Recycling (SBWR) Wholesale Rate
Increase of 15.4%
• 10.0% Increase in Consumption Charge per HCF ($4.12 to $4.53)
• Recycled Water Purchases Represent Over 85% of Overall Expenditures
• Cost Still Represents Savings of Almost 45% Over Potable Water
11 11
City of
Santa Clara
The Center of What's Possible
Proposed Sewer Rates
• 3.1% Increase in Single Family Residential Charge (2.7% Increase in Multi-Family Residential Charge)
$1.46/Month Increase from $46.82 to $48.28 for SFR
($1.19/Month Increase for MFR - $44.69 to $45.88)
• Average increase of 8.0% for Commercial Customers
(Actual Change Dependent on Customer Class)
12 12
6 City of
Santa Clara
The Center of What's Possible
Water and Sewer Rate Comparison
$200.00
$180.00
$160.00
$140.00
$120.00
$100.00
$80.00
$60.00
$40.00
$20.00
$0.00
Mountain
Santa Clara Santa Clara Sunnyvale San Jose SJWC Milpitas Palo Alto View
Current Proposed Proposed Proposed Proposed Proposed Proposed Proposed
= WATER RATE 12 HCF $87.96 $95.64 $83.18 $118.21 $115.55 $126.62 $117.65 $138.30 • SEWER RATE $48.28 $62.34 $45.49 $53.11 $45.49 $64.22 $48.64 $46.82
•COMBINED $134.78 $143.92 $145.52 $163.70 $168.66 $172.11 $181.87 $186.94 13 13
City of
Santa Clara
The Center of What's Possible
Utility Bill Assistance
• Water & Sewer Low Income Rate Assistance
• Help Your Neighbor
• Very Low Income Assistance Through Sacred
Heart Community Services
• State Assistance for Past Due Water and Sewer
Bills
14 14
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 2023- 01 and Recycled Water Rate Schedule 2023-02 for City
Water Service Rates to be Effective July 1, 2023.
- Adopt the Resolution Approving Sewer Rate Schedule S-23 for City Sewer Service Rates to be Effective July 1, 2023 15 15
City of
Santa Clara
The Center of What's Possible
1852
THE MISSION CITY
16 16