REPORT TO COUNCIL
SUBJECT
Title
Action to Approve a Water & Sewer Rate Assistance Program for Residential Customers [Council Pillar: Deliver and Enhance High Quality Efficient Services and Infrastructure]
Report
BACKGROUND
The City of Santa Clara Water & Sewer Utilities Department (Utilities) provides a dependable supply of safe, potable drinking water and environmentally-sound wastewater collection, treatment, and disposal. Utilities provides services to approximately 26,000 customer accounts in the City. Utilities charges customers for providing the potable water and sanitary sewer services to pay for operations and maintenance (O&M) and capital improvement program (CIP) costs for each of the utilities.
Since 2019, the City has contracted with Black and Veatch, Inc. to prepare a Water and Sewer Rate Study to ensure that the rates charged by the Utilities using the Cost of Service model complied with applicable laws and adhered to industry best practices. City Council approves all water, sewer, and recycled water rates.
As an immediate step in response to the COVID-19 pandemic, Utilities has implemented a suspension on service disconnections and late fees for utility non-payment. These practices will apply to both residential and commercial customers and will remain in effect until further notice. To further support customers who may be impacted by the pandemic, the City will offer its most flexible payment plans to customers who indicate either an impact or hardship as a result of COVID-19. Utilities recognizes that some Santa Clarans are likely experiencing real economic hardship and could further benefit from assistance in paying their utility bills.
DISCUSSION
Certain provisions of Proposition 218, which California voters approved in November of 1996 as an amendment to the State Constitution, will not allow the use of rate revenues to subsidize such a program. Therefore, staff has proposed utilizing existing revenues from cell tower leases located ...
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