#5 6/10/2025
City Council
TO CLARA CANED Meeting
Item #5: RTC 25-57
Public Hearing: Action on
Resolutions Approving
1852
Water, Sewer, and Recycled
THE MISSION CIT Water Amended Rates to be
Effective July 1, 2025
June 10, 2025
1 City of
Santa Clara
The Center of What Possible
Agenda
• Rate Setting Timeline
• Overview of Utilities
• Capital Improvement Projects
• Proposed Rates and Rate Pressures
• Comparison with Neighboring Agencies
• Utility Bill Assistance
• Building Resiliency
• Close Public Hearing and Set Rates
2 POST MEETING MATERIAL
1 #5 6/10/2025
City of
Santa Clara
The Conterof Wars Posgible
Timeline
Delivering Affordable High-Quality
Services to the Community
• On or about April 26, 2025 -
Proposition 218 Notice Arrived
in Mailboxes
• May 21 & 23 - Council Briefings
• June 10, 2025- Rate Hearing
• July 1, 2025 - If Approved by
Council, Rates Become Effective
3 City of
Santa Clara
Our Utilities
• Water
~27,000 connections, 335 miles of mains, 20 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 2
#5 6/10/2025
City of
Santa Clara
ils Conter of Whot Posibilg
Potable Water
19.8%
Sources
CITT OF SFPUC
SUNNYVALE
60.0%
Groundwater
SAM JOSE
20.2% SCYWD
5 City of
Santa Clara
The Center of Whats Possible
Water Sources 2024
Santa Clara
Groundwater Wells Valley Water
50% 15%
SFPUC
16%
Recycled Water
19%
6 3
#5 6/10/2025
City of
Santa Clara
The Caster of Won Positee
Award Winning Utilities
CALIFORNIA
WATER ENVIRONMENT ASSOCIATIGN
Santa Clara VaRey Section
City of Santa Clara
Water & Sewer Utilities
Progert of the dens Collecten Systom of the Tear - Medium raject of the gear 2024
BASSETTST RECYCLED WATER
CWEA
221
City of
Santa Clara
Water Utility CIP
• $29 million budgeted
over next 5 years
• Largest expenditures
include Water Main
Replacement, Well
Rehabilitation, and
Facility Improvements
8 #5 6/10/2025
City of
Santa Clara
The Cunter of Whut: Possitie
Water Utility CIP (cont.)
g
City of
Santa Clara
Te Cooler of Which Possible
Sewer Utility CIP
• $534.2 million over the next 5 years, $89.4 million of which is City's contribution to CIP at RWF.
• Financing completed in 2023
• Future financing likely in 2027 & 2029
• Other City projects include: Condition Assessment, System Improvements and Capacity Improvements
• RWF operating capital costs represent 70% of costs
10 5
#5 6/10/2025
City of
Santa Clara
Th Coregrof Whit Nossibl
Sewer Utility CIP (cont.)
11 City of
Santa Clara
The Conter of Whit's Potsible
Sewer Utility CIP (cont.)
12 #5 6/10/2025
City of
Santa Clara
The Center of Whats Possible
Proposed Rate Increases
• Water - 11.2%
Sewer
• Single Family: 9.9%
• Multi-Family: 7.8%
• Commercial: Average of 6.65%
(depends on customer class)
• Recycled Water - 7.3%
13 City of
Santa Clara
Tise Cafter of Whits Possible
Average Residential Bill
• Water
- Average Resident will increase by $11.88/month
• Monthly Bill: From $106.80 to $118.68
• Sewer
- Average SF Resident will increase by $5.19/month
• Monthly Bill: From $52.37 to $57.56
- Average MF Resident will increase by $3.84/month
• Monthly Bill: From $49.31 to $53.15
Total Water & Sewer Monthly Residential Increases:
Single Family = $17.07 / Multi-Family = $15.72
14 #5 6/10/2025
City of
Santa Clara
The Center of hors Possible
Proposed Recycled Water Rates
• Consumption Charge per HCF increased by 7.3%
($5.06 to $5.43)
• Cost Represents Savings of 45% Over Potable Water
• Water Purchases Represent Approx. 70% of Overall Expenditures • System Owned by South Bay Water Recycling (SBWR)
• System Operated and Maintained by Santa Clara Staff
15 City of
Santa Clara
Rate Pressures
• Wholesale Suppliers (Water & Recycled Water)
• RWF CIP and O&M (Sewer)
• Litigation Exposure/Environmental Cleanup (Sewer)
• Construction & Labor Costs (all Utilities)
Water & Sewer Demand: Drought + Conservation
Requirements
16 8
#5 6/10/2025
City of
Santa Clara
The Cooter of Whits Possibly
Wholesale Water Rates
• Rate Increases
- Valley Water - 9.9% proposed for FY25-26 & 9.9%
per year for 10 years after that
- SFPUC - 2.3% increase proposed in FY25-26 & 1%,
1.2%, 5.1%, and 8% in successive years.
-South Bay Water Recycling (SBWR) Wholesale
Rate Increase of 10.4%
17 City of
Santa Clara
The Center af Whats Possible
Rate Trends
Percent Increase
Fiscal
Year Previous Drought - Valley Water
Valley 25%-
Water Sewer Water - Sewer
25-26 9.9% - Water
Proposed 11.2% 9.9% 20%
24-25 11.6% 8.5% 12.9%
23-24 8.7% 3.1% 14.5% 15°
22-23 9.6% 5.2% 15% Recent Drought
21-22 4% 0% 9.1%
100.
20-21 3.4% 1% 0%
19-20 4% 2.7% 6.6%
5.1% 5°-
18-19 3% 9.7%
17-18 15% 0% 9.6%
16-17 18.9% 9.8% 19.9%
15-16 9.5% 9.5% 19%
14-15 12% 5% 9.9%
Propened 25-26
12-Year 9.0% 4.0% 11.0%
Average
18 9
#5 6/10/2025
City of
Santa Clara
The Conteror Wars Rigitie
2024 City Water Demand
135,000 10,000
9,000
125,000
8,000
115,000
7.000 Million Gallons (MG)
Population Lowest Water Use
105,000 During 20-23 Drought
6,000
95,000 5,000
Lowest Water Use
During 14-17 Drought
85.000 4,000
Year 10505 1000 100° 2020
-Population -Water Demand
19 City of
Santa Clara
The, Centerst Whats Possible
2024 Residential & CIl Water Demand
10,000
135,000 9,000
8,000
125,000
7,000
115,000 6,000 Million Gallons (MG)
105,000 5,000
4,000
95,000
3,000
85,000 2,000
Year 1050° 2000 2010
—Residential Water Demand —CIl Demand
Commercial, Industrial, Institutional
20 10
#5 6/10/2025
City of
Santa Clara
The Center of Whats Possible
Rate Mitigation Strategies
• Cost Controls and Realistic Budgets
-CIP Project Reviews
-O&M Efficiencies
• Multi-agency Communications re: RWF and
water wholesale agency expenditures
21 City of
Santa Clara
The Center of Whits Pissible
Water & Sewer Rate Comparison
$250.00
• Water Rate • Sewer Rate Combined
$200.00
$150.00
$100.00
$50.00
$0.00
Santa SAWC Mountain View San Jose Milpitas Palo Alto
Sunnyvale Clara (Muni)
Water Rate 12 $91.69 $118.68 $136.31 $129.01 $145.73 $139 14 $166.89 HCF
Sewer Rate $72.70 $57 55 $50 42 $57.75 $50 42 $69.46 $67.11 Combined $164.39 $176.23 $186.73 $186.76 $196.15 $208.90 $234.00 "All rates are proposed for FY25-26
22 11
6/10/2025
City of
Santa Clara
The Center of What Possible
Utility Bill Assistance
• Water & Sewer Low Income Rate Assistance
• Help Your Neighbor Program
• Sacred Heart Community Services Very Low-
Income Rate Assistance
23 City of
Santa Clara
This Center of What's Possible
Building Resiliency
• Contribution to the General Fund
($5.38M in FY23-24; projected $5.91M in FY24-25)
• Building Reserves Across All Utilities
Adding $11.3M in Water & Sewer by end of FY 2026/27
24 12
#5 6/10/2025
City of
Santa Clara
The Coplar of Wur Monitole
25 City of
Santa Clara
The Coster of Whats 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 2025-01 and Recycled Water Rate Schedule 2025-02 for City Water Service Rates to be Effective July 1, 2025
- Adopt the Resolution Approving Sewer Rate Schedule S-25 for City Sewer Service Rates to be Effective July 1, 2025 26 #5 6/10/2025
City of
Santa Clara
To Caster i With Posite
QUESTIONS?
27 City of
Santa Clara
The Center of Whats Possible
Water & Sewer Rate Comparison
Percentage Increases From Previous Year
25%
Water Sewer
20% Sunnyvale 6% 7%
Santa Clara 11.2% 9.9%
15% SJWC 8.7% 1.7%
Mountain View 5.8%
10%
San Jose (Muni) 10.2% 1.7%
5% Militas 19.2% 4%
Palo Alto 9.7% 20%
0%
Sunnyvale Santa SJWC Mountain San Jose Milpitas Palo Alto Clara View (Muni)
= Water Rate • Sewer Rale
28 14
#5 6/10/2025
City of
Santa Clara
The Center of Wheath Poosibl
Breakdown of Rates
TED SINES
BB 01504511
B2
BB 01504511
006 6
$7 to Valley Water & SFPUC $3 to W&S
29