CC Exhibit 03-21-2017 Item No. 1 Presentation from the Santa Clara Valley Water District regarding the Groundwater Rates ProcessPage 1 of 8
City of Cupertino
Santa Clara Valley Water District
Water Rates Overview
March 21, 2017
Page 2 of 8
10 Reservoirs
393 acres of recharge ponds
142 miles of pipelines
3 water treatment plants
1 water purification center
3 pump stations
$7.1B system replacement value
A comprehensive, flexible water system serves 1.9 million people
Page 3 of 8
Many activities ensure safe, reliable groundwater supplies
Operate & maintain local
reservoirs
Purchase imported water
Operate & maintain raw,
treated & recycled water
pipelines
Plan & construct improvements
to infrastructure
Monitor & protect groundwater
from pollutants
$1.2M repair of the Santa Clara
Conduit near Casa de Fruta
$445M Seismic Retrofit
under way at Anderson
Page 4 of 8
0
50
100
150
200
250
300
350
FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22
Ac
r
e
-fe
e
t
(
1
,
0
0
0
s
)
Actuals FY 16 Estimate Projection
Treated Water
Wet Spring
Drought/Recession
278KAF
266KAF
250KAF 251KAF
285KAF
304KAF302KAF
249KAF 249AF
285KAF
$50 $50 $75Non-contract TW
surcharge ($/AF)$50$150 $150 $200$100$100
Historic Drought
236KAF
199KAF 205KAF
217KAF 226KAF 237KAF
$50
District Managed Water Usage
Page 5 of 8
Cost Projection
-
100
200
300
400
500
600
700
800
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Mi
l
l
i
o
n
s
$
Fiscal Year
Capital
Debt Service
Support Svcs
Water Treatment
and T&D E-2.3
Raw Water T&D E-
2.2
Source of Supply E-
2.1
617
254
325
374 352 368
602
510
606
673 674
719
474
Page 6 of 8
Groundwater Production Charge Projection
Water Utility Enterprise Funds
$0
$100
$200
$300
$400
$500
$600
$700
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27
mi
l
l
i
o
n
s
Fiscal Year
Op & Cap Reserve Restricted & Other Reserves excl. enc.
Total Revenue + Xfers In Operating Outlays + Xfers Out
Capital Projects Min Op & Cap Reserve
$894
19.7%
$1,072
19.9%
$1,175
9.6%
$1,288
9.6%
$1,412
9.6%
$1,547
9.6%
$1,695
9.6%
$1,857
9.6%
$2,034
9.6%
$2,229
9.6%
$2,378
6.7%
$2,443
2.8%
$356
11.6%
$393
10.4%
$418
6.4%
$442
5.7%
$467
5.7%
$494
5.8%
$522
5.7%
$552
5.7%
$584
5.8%
$617
5.7%
$652
5.7%
$689
5.7%
$0
$500
$1,000
$1,500
$2,000
$2,500
$0
$100
$200
$300
$400
$500
$600
$700
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27
mi
l
l
i
o
n
s
Fiscal Year
Op & Cap Reserve Restricted & Other Reserves excl. enc.
Total Revenue + Xfers In Operating Outlays + Xfers OutCapital Projects Min Op & Cap Reserve
North County M&I Rate ($/AF)South County M&I Rate ($/AF)
Page 7 of 8
Key Water Supply Projects
RWTP Reliability Improvements
($251 Million)
Expedited Purified
Water Program
($945 Million)
Dam Seismic Retrofits/Improvements
($675 Million)
Page 8 of 8
Hearings and Meetings Ensure Feedback and Transparency
2017 schedule for hearings and meetings
Dec 13 Board Workshop: Planning for FY 18 Groundwater Prod. Charges
Jan 10 Board Meeting on Preliminary Groundwater Prod. Charge Analysis
Feb 24 Mail notice of public hearing and file PAWS report
March 15 Water Retailers Meeting
April 3 Ag Water Advisory Committee
April 04 Landscape Committee Meeting
April 11 Open Public Hearing
April 13 Continue Public Hearing in Morgan Hill (Informational Open House)
April 17 Environmental & Water Resources Committee
April 19 Water Commission Meeting
April 25 Conclude Public Hearing
May 09 Adopt budget & groundwater production and other water
charges
Note: Protests may be submitted between the date the notice was mailed
(February 24) and the conclusion of the hearing (April 25)