City of Santa Clara - File #: 23-447

• File #: 23-447
• Version: 1
• Type: Public Hearing/General Business
• Status: Agenda Ready
• File created: 3/20/2023
• In control: Council and Authorities Concurrent Meeting
• On agenda: 6/6/2023
• Final action: 6/6/2023
• Title: Public Hearing: Action on Resolutions Approving Water, Sewer and Recycled Water Amended Rates to be Effective July 1, 2023

Date	Ver.	Action By	Action	Result
6/6/2023	1	Council and Authorities Concurrent Meeting	Approved	Pass
6/6/2023	1	Council and Authorities Concurrent Meeting	Adopted	Pass

REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Action on Resolutions Approving Water, Sewer and Recycled Water Amended Rates to be Effective July 1, 2023

Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure

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 recycled water service proposed fees or charges are subject to a written notice and public hearing not less than 45 days after the mailing of the notice, and protest procedure for their approval. At the public hearing, all protests against the proposed fees or charges are tabulated and if protests are presented by a majority of utility customers (50% plus 1), the fees or charges cannot be imposed. If there is not a majority of utility customers protesting the proposed fees or charges, Council can make and act on a motion to approve increases. The required number of protests needed to deny Council the option to approve rate increases is 11,910.

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, when possible and feasible, the funding for reserves associated with the respective utility systems.

Staff is seeking approval of the attached resolutions assigning water and recycled water rates (Attachment 1), and sewer rates (Attachment 2) to be effective July 1, 2023.

The Water & Sewer Utilities Department engaged Black & Veatch Management Consulting, LLC (Black & Veatch) to conduct an ongoing study of water, sewer, an...