The City of Santa Clara Water & Sewer Utilities provides high-quality services for residents and businesses and ensures that the water and sewer systems within the City are maintained and operational 24 hours a day, seven days a week. We rehabilitate or replace aging infrastructure such as water and sewer mains, pump stations, storage tanks, pumps, and wells to prevent service interruptions.

The City is committed to implementing appropriate cost-saving and cost-control measures to maintain the affordability of these essential services. The Water & Sewer Utilities continue to comply with existing and new regulations. Due to critical infrastructure replacement and rising wholesale water costs, there is a need to increase water and sewer rates.

The Water & Sewer Utilities is committed to providing:

• A dependable supply of safe, potable water
• Environmentally-sound wastewater collection, treatment and disposal
• Recycled water, where available, for approved uses, including irrigation and industrial processes
• All programs and services are designed and implemented with economic and environmental benefits in mind
  

Water: The City provides potable water to approximately 26,000 service connections, including residential and commercial customers. The system consists of 335 miles of water mains, 21 active groundwater wells, and seven storage tanks that store more than 28 million gallons. The City delivers drinking water to Santa Clarans through proactive maintenance programs and capital projects to rehabilitate or replace aging water infrastructure and a robust sampling program that ensures that all our customers receive water that meets or exceeds federal and state standards.

Sewer: The City maintains 288 miles of sewer mains and seven lift and pump stations across the sewer collection system, and we serve approximately 22,000 sewer connections. The City is a co-owner of the San José-Santa Clara Regional Wastewater Facility, administered and operated by the City of San José.

Recycled Water: The City maintains over 34 miles of Recycled Water mains and delivers recycled water to approximately 380 accounts through water provided by the City of San Jose’s South Bay Water Recycling. This water is used exclusively for non-potable uses, such as irrigation, dual plumbed commercial facilities and industrial cooling towers.

Coming Out of an Historic Drought

As 2023 began, the City, along with the rest of California, was finding its way out of an historic drought which had decimated water supplies region-wide and had forced utilities and consumers alike to rethink their relationship with the most precious resource, clean water. During the drought years, the City pushed for rebate programs and our customers stepped up, reducing usage significantly. Revenues were already falling post COVID and additional lost revenue from lower sales placed additional upward pressure on rates. 

Maintaining Conservation as a Way of Life in Santa Clara

As the state came out of the recent drought, the Governor asked Californians to embrace water conservation as an ongoing way of life. In Santa Clara, we were already heading that way. For our City, conservation and sustainability are fundamental strategies that are not based on the weather. We know that climate change will result in droughts that are more frequent and severe. We have to plan for that future. 

Where We Are Now

The drought may be behind us, but from a water supply planning perspective, we must assume that the next drought is right around the corner. Reduced water demand, decreased revenues and increased costs are likely the new normal faced by utilities like ours. Our wholesale partners are continuing to increase what they charge to the City, year over year, with many of them experiencing the same fiscal stressors our utilities are experiencing. Ongoing CIP investments at the jointly owned San José-Santa Clara Regional Wastewater Facility (RWF) and debt service payments on those investments are also causing upward pressure on the rates we are proposing. Lastly, we continue to make necessary long-term investments in water, sewer and recycled water infrastructure and to provide utility services with the highest level of service for our customers as our goal.

Water Rates 

Water rates are charged to Santa Clara customers based on usage. Usage is measured in hundred cubic feet (HCF), also known as a unit of water, and an HCF is equal to 748 gallons.  Customers are charged a minimum charge based on their meter size (see table 1). However, if their usage exceeds the minimum charge, they are only charged based on use. The two charges are not levied concurrently. 

The City’s two potable water suppliers, Valley Water and the San Francisco Public Utilities Commission (SFPUC), are proposing to raise their rates significantly again this year, with additional forecasted rate increases in the years ahead. The cost of purchasing water represents a large majority of the operating budget for Santa Clara’s water utility. In addition, infrastructure maintenance costs and dropping revenues due to the recent historic drought have created a need for the utility to raise rates for Santa Clara customers. The utility needs to increase revenue to continue the high level of service Santa Clarans expect. As in years past, the best way for our customers to lower their water bill is to aggressively conserve water.

Table 1 - WATER RATES
Per HCF	Current Rate: $7.97	Proposed Rate: $8.90
Water Meter Size	Current Minimum Monthly Charge	Proposed Minimum Monthly Charge
5/8 x 3/4 inch	$21.48	$23.42
1 inch	$33.66	$36.67
1 1/2 inch	$64.10	$69.78
2 inch	$100.64	$109.51
3 inch	$198.07	$215.46
4 inch	$307.67	$334.66
6 inch	$612.14	$665.77
8 inch	$977.49	$1,063.09
10 inch	$1,464.63	$1,592.86

 

Sewer Rates

Residential customers are charged a flat rate for sewer service. Commercial and Industrial sewer rates are dependent on the business type and are based on the amount of wastewater discharged. The main driver of the sewer rate increases is the City’s contributions to the CIP and operations and maintenance of the jointly owned San José-Santa Clara Regional Wastewater Facility (RWF). The City owns approximately 20% of the RWF, and San José is the administrator. Santa Clara works to control costs at the RWF through participation in the Treatment Plant Advisory Committee. 

Table 2 - SEWER RATES
Residential Sewer Rates Per Month	Current Rate	Proposed Rate
Single Family	$48.28	$52.37
Multi-Family	$45.88	$49.31
Non-Residential Type (per HCF)	Current Rate	Proposed Rate
Food & Kindred Products	$13.45	$15.74
Paper	$13.82	$4.44
Industrial Chemical	$10.02	$11.58
Metal Plating	$4.50	$5.05
Machinery Manufacturers	$8.16	$9.33
Electrical & Electronic Equipment	$5.55	$6.18
Auto Dealers & Service Stations	$6.76	$7.80
Restaurants	$13.70	$16.01
Motels & Hotels	$7.09	$8.09
Laundries	$6.02	$6.80
Repair Shops & Car Washes	$5.15	$5.90
Amusement Parks	$6.15	$6.93
Hospitals & Convalescent Homes	$6.72	$7.60
Schools & Colleges	$6.54	$7.31
Churches	$5.55	$6.12
Other Non-residential	$5.87	$6.61
Minimum Commercial Charge	$48.28	$52.37

 

Table 3 - MAJOR COMMERCIAL & INDUSTRIAL SEWER USERS
Operating & Maintenance Cost Recovery	Current Rate	Proposed Rate
Volume (per MG)	$3,315.00	$3,671.11
BOD (per 1,000 lbs)	$502.00	$561.28
SS (per 1,000 lbs)	$625.00	$651.81
NH3 (per 1,000 lbs)	$5,125.00	$4,980.00
Annual Capital Cost Recovery	Current Rate	Proposed Rate
Volume (per MG)	$1,147,617	$1,306,599
BOD (per 1,000 lbs)	$85,145	$124,262
SS (per 1,000 lbs)	$77,042	$114,880
NH3 (per 1,000 lbs)	$466,740	$538,093

 

Recycled Water Rates

Similar to potable water, recycled water customers are charged a minimum charge based on meter size and are charged by the unit (HCF) if their usage exceeds the minimum charge. Recycled water is used by the City’s Commercial and Industrial customers for irrigation, dual plumbing and various other industrial processes, such as cooling towers. The City is committed to utilizing this resource as a substitute for potable water whenever feasible, and recycled water makes up almost 20% of the City’s entire water portfolio.

Table 4 - RECYCLED WATER RATES
Per HCF	Current Rate: $4.53	Proposed Rate: $5.06
Water Meter Size	Current Minimum Monthly Charge	Proposed Minimum Monthly Charge
5/8 x 3/4 inch	$16.64	$17.44
1 inch	$27.03	$28.43
1 1/2 inch	$53.02	$55.91
2 inch	$84.21	$88.88
3 inch	$167.37	$176.80
4 inch	$260.93	$275.71
6 inch	$520.82	$550.46
8 inch	$832.68	$880.16
10 inch	$1,248.50	$1,319.76
12 inch	$1,755.27	$1,855.53

Table 5 - CROSS CONNECTION RATES
Size	Current Monthly Charge	Proposed Monthly Charge
1 inch	$6.73	$8.60
2 inch	$10.78	$13.76
3 inch	$21.55	$27.53
4 inch	$33.67	$43.01
6 inch	$67.34	$86.02
8 inch	$107.75	$137.63
10 inch	$161.63	$206.44

 

Table 5 - FIRE SERVICE RATES
Size	Current Monthly Charge	Proposed Monthly Charge
2 inch	$2.95	$3.15
4 inch	$16.71	$17.84
6 inch	$49.15	$52.48
8 inch	$104.68	$111.78
10 inch	$188.23	$201.00
12 inch	$304.21	$324.85

Proposed rate increases for the Water & Sewer Utilities will be considered for adoption at the public hearing on May 28, 2024 at 7 p.m., or soon thereafter. This meeting will be held in a hybrid manner (in-person and remotely) during the regular City Council meeting.

Tuesday, May 28, 2024 at 7 p.m.
Santa Clara City Hall Council Chambers
1500 Warburton Avenue, Santa Clara
Meetings are conducted in a hybrid manner and can also be accessed as follows: 

Zoom Meeting ID: 997-0675-9306
Phone: 1(669) 900-6833
The meeting agenda will be posted at: SantaClaraCA.gov/Agendas

If you cannot participate in the meeting, you may formally protest the proposed increases in writing, as protests cannot be accepted via email or telephone. Written protests must be received before the close of the public hearing. 

If you wish to formally protest the proposed increase and cannot attend the public hearing, send in your written protest by the close of the hearing on Tuesday, May 28, 2024.

Protests cannot be accepted via email or telephone; to be counted, they must either be mailed or hand-delivered to:
 
City Clerk’s Office – Utility Rate Comments
City of Santa Clara
1500 Warburton Ave.
Santa Clara, CA 95050

When submitting a written protest, include: Name, signature, the address of the property for which you are the owner or utility customer, and the rate(s) you are protesting. Written protests can be submitted at any time before the close of the public hearing on May 28, 2024. If protests are received from a majority of the parcels affected by the proposed rate increase by the close of the public hearing, the City Council will not impose the increase.

For More Information

If you have questions, call Water & Sewer Utilities at 408-615-2000 or email 
water@santaclaraca.gov or visit SantaClaraCA.gov/ProposedRates.