City of Santa Clara - File #: 18-152

• File #: 18-152
• Version: 1
• Type: Public Hearing/General Business
• Status: Agenda Ready
• File created: 2/15/2018
• In control: Council and Authorities Concurrent Meeting
• On agenda: 6/12/2018
• Final action: 6/12/2018
• Title: Public Hearing: Action on Resolutions Approving Water, Recycled Water and Sewer Rates to be Effective July 1, 2018

Date	Ver.	Action By	Action	Result
6/12/2018	1	Council and Authorities Concurrent Meeting	Approved Staff Recommendation	Pass

REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Action on Resolutions Approving Water, Recycled Water and Sewer Rates to be Effective July 1, 2018

Report
BACKGROUND
The City updates the rates it charges Santa Clara residents and businesses for water, sewer, and recycled water services on a yearly basis. Each of these three utilities is self-sustaining and rates are adopted to pay for revenue requirements associated with operations and maintenance (O&M) costs, capital improvement program (CIP) projects and the funding of reserves associated with the respective utilities' systems.

Staff is seeking approval of the attached resolutions assigning water, sewer, and recycled water rates to be effective immediately for water, sewer, and recycled water services delivered on or after July 1, 2018 (Attachments 1 & 2).

Though the City updates its rates on a yearly basis at the staff level, as a best practice utilities should conduct an independent review of their rates and rate setting process approximately every five (5) years. The last such independent review of Santa Clara utility rates was completed in 2009, and only reviewed sewer rates. The City selected Black & Veatch Management Consulting, LLC to conduct a study of water, sewer, and recycled water rates charged to City residents and businesses. The results of that study informed the proposed rates in the attached resolutions.

DISCUSSION
On October 6, 2017, City Water & Sewer Utilities Staff issued a request for proposals (RFP) seeking a study of water, sewer, and recycled water rates charged to Santa Clara residents and businesses. On October 27, 2017, staff received seven (7) proposals, and after internal scoring and follow up interviews, selected Black & Veatch Management Consulting, LLC to conduct the study.

The attached study (Attachment 3) is intended to inform the new rates charged to water, sewer, and recycled water customers served by the City of Santa Clara's utilities. The study was presented to C...