REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Action on Resolutions Approving Water, Sewer and Recycled Water Rates to be Effective July 1, 2019
Report
BACKGROUND
In November 1996, California voters approved Proposition 218, which amended the state Constitution to establish a new category of fees and charges referred to as "property-related fees and charges" and created new procedural requirements for their adoption. Under these requirements, water, sewer, and solid waste service fees or charges are subject to a written notice of proposed increases, public hearing on proposed fees or charges not less than 45 days after the mailing of the notice, and majority protest procedure for their approval. At the public hearing, all protests against the proposed fees or charges are tabulated and if the number of protests are presented by a majority of owners (50% plus 1), the fees or charges cannot be imposed. If there is not a majority of owners protesting the proposed fees or charges, Council can make and act on a motion to approve increases.
The City updates the rates it charges Santa Clara residents and businesses for water, sewer and recycled water services on an annual 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 utility systems.
Staff is seeking approval of the attached resolutions assigning water, sewer and recycled water rates to be effective for water, sewer and recycled water services delivered on or after July 1, 2019 (Attachments 1 & 2).
Last year, the Water & Sewer Utilities Department contracted with Black & Veatch Management Consulting, LLC (Black & Veatch) to conduct a study of water, sewer and recycled water rates charged to City residents and businesses. Black & Veatch conducted a cost of service analysis for all three uti...
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