5128/74 Item #5
City Council
Meeting
Item #5: RTC 24-201
Public Hearing: Action on
Resolutions Approving
1852
Water, Sewer, and Recycled
THE MISSION CIT Water Amended Rates to be
Effective July 1, 2024
May 28, 2024
City of
Santa Clara
The Center of What's Possible
Agenda
• Rate Setting Timeline
• Overview of Utilities
• Capital Improvement Projects
• Proposed Rates and Rate Drivers
• Comparison with Neighboring Agencies
• Utility Bill Assistance
• Close Public Hearing and Set Rates
2 POST MEETING MATERIAL
1 City of
Santa Clara
The Contero What Possible
Timeline
• April 1-4: Council Briefings
• April 8: Proposition 218 Notices Mailed
• May 28: Public Hearing
• July 1: If Approved by Council, Rates Become Effective 3 3
City of
Santa Clara
The Center of What's Possible
Our Utilities
• Water
~27,000 connections, 335 miles of mains, 19 active
groundwater wells, 7 storage tanks - capacity of over 28MG • Sewer
~27,000 connections, 288 miles of mains, 7 pump stations, co-owner of Regional Wastewater Facility (RWF) with San José
• Recycled Water
361 connections, approx. 20% of total water sales in summer months
4 City of
Santa Clara
The Center of What's Possible
Potable Water
19.8%
Sources
SFPUC
CITY OF
SUNNYVALE
CENTRALER/E
60.0%
Groundwater
CITY OF
SANJOSE
SCVWD
20.2%
5 5
City of
Santa Clara
The Center of What's Possible
Projected Water Sources FY24-25
Groundwater Wells
47.5%
SFPUC
15.5%
Valley Water Recycled Water
16.4%
20.6%
6 6
3 City of
Santa Clara
The Center of What's Possible
Award Winning Utilities
CALIFORNIA
WATER ENVIRONMENT ASSOCIATION
and its
Santa Clara Valley Section
present to
City of Santa Clara
Water & Sewer Utilities
this
rajest of the Wear Collection System of the Year Award, Medium rajert of the Hear UTILITES - $5 TO $25 MILLION
DISASTER OR EMERGENCY CONSTRUCTION/REPAIR 2023 SERRA TANKS REHABILITATION PROJECT
BASSETT ST RECYCLED WATER CITY OF SANTA CLARA
CITY OF SANTA CLARA WATER & SEWER UTILITIES NV 5
CWEA 2023
2024 ARMAN
spear Presides
7 City of
Santa Clara
The Center of What's Possible
Water Utility CIP
• $25.7 million budgeted
over next 5 years
• Largest expenditures.
over the next 2 years
include Water Main
Replacement, Well
Rehabilitation, and
Facility Improvements
8 City of
Santa Clara
The Center of What's Possible
Water Utility CIP (cont.)
9 City of
Santa Clara
The Center of What's Possible
Sewer Utility CIP
• $132.6 million over the next 5 years, $86.0 million
of which is City's contribution to CIP at RWF.
• Other City projects include: Condition Assessment,
System Improvements and Capacity Improvements
10 10
City of
Santa Clara
The Center of What's Possible
Sewer Utility CIP (cont.)
0 Dgested Sludge Dewatering Facity
• Headwor
9 No fication Cartiers Relabltation - Fluse
• Outer Channel and Instrumentation bee
© Storm Drain Syrteos Improvement
10 © Yard Pping impre
11 11
City of
Santa Clara
The Center of What's Possible
Proposed Rate Increases
• Water - 11.6%
• Sewer
- Single Family: 8.5%
- Multi Family: 7.5%
- Commercial: Average increase of 13.7% (depends on
customer class)
• Recycled Water - 11.8%
12 12
City of
Santa Clara
The Center of What's Possible
Average Residential Bill
• Water
- Average Resident will increase by $11.16/month
• Monthly Bill: From $95.64 to $106.80
• Sewer
- Average SF Resident will increase by $4.09/month
• Monthly Bill: From $48.28 to $52.37
- Average MF Resident will increase by $3-43/month
• Monthly Bill: From $45.88 to $49.31
Total Water & Sewer Monthly Residential Increases:
Single Family = $15.25 / Multi-Family = $14•59 13
13 City of
Santa Clara
The Contero what Possiblo
Proposed Recycled Water Rates
• Increase in Consumption Charge per HCF ($4.53 to
$5.06)
• Recycled Water Purchases Represent Almost 85% of
Overall Expenditures
• Cost Still Represents Savings of 43% Over Potable Water 14 14
City of
Santa Clara
The Center of What's Possible
Rate Drivers
• Wholesale Rates (Water & Recycled Water)
• Regional Wastewater Facility CIP (Sewer)
• Environmental Cleanup (Sewer)
• Right of Way Fee (all Utilities)
• Construction & Material Costs (all Utilities)
• Decreased Demand (Water & Sewer)
- Drought, Conservation and Sustainability
15 15
City of
Santa Clara
The Center of What's Possible
Wholesale Water Rates
• Valley Water adopted 12.9% Increase in
Groundwater Charges for FY24-25. 9.9% per year
for the next 10 years
• SFPUC Adopted 8.8 % rate increase for FY24-25
• Water Purchases Represent Almost 65% of overall
Expenditures
• South Bay Water Recycling (SBWR)
Wholesale Rate Increase of 13.6% 16
16 8
City of
Santa Clara
The Center of What's Possible
Rate Trends
Percent Increase
Previous Drought 25.00%
Fiscal
Year
Valley
Water Sewer Water
20.00%
24-25 Valley
11.6% 8.5% 12.9%
Proposed Water
14.5%
15.00%
115.0% Recent Drought
-- —
9. 1%
10.00%
3%
25333237283 0%
5.00%
9.9%
Water
19.0% Sewer
5% 9.9%
9 3% 0.00%
14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25
1.15% 17
17 City of
Santa Clara
The Center of What's Possible
City Water Demand 2023
140,000 5,500
135,000 5,000
Population
130,000 4,500
125,000
: 120,000 3,500
lation 115,000 3,000
110,000
Popul
• 105,000
100,000
95,000 1,000
90,000 500
85,000
Year
-Residential Water Sales - Commercial/Industrial Water Sales 18 18 9
City of
Santa Clara
The Center of What's Possible
Rate Mitigation Strategies
• Cost Controls and Realistic Budgets
-CIP Project Reviews
-O&M Efficiencies
• Multi-agency Communications re: RWF and
Wholesale Water Agency Expenditures
19 19
City of
Santa Clara
The Center of What's Possible
Water & Sewer Rate Comparison
$250.00
$200.00
$150.00
$100.00
$50.00
$0.00
Sunnyvale Santa Clara SJWC Mountain View San Jose (Muni) Milpitas Palo Alto Water Rate 12 HCF $86.50 $106.80 $125.44 $122.86 $132.25 $116.72 $152.19 Sewer Rate $67.95 $52.37 $49.59 $54.60 $49.59 $66.79 $55.93 Combined $154.45 $159.17 $175.03 $177.46 $181.84 $183.51 $208.12 "All rates are proposed for FY24-25 20
20 10
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
21 21
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 2024- 01 and Recycled Water Rate Schedule 2024-02 for City
Water Service Rates to be Effective July 1, 2024.
- Adopt the Resolution Approving Sewer Rate Schedule S-24 for City Sewer Service Rates to be Effective July 1, 2024 22 22
11 City of
Santa Clara
The Center of What's Possible
AT CLARA CATTE
1852
THE MISSION CIT
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