Exhibit CC 09-06-2016 Item No. 23 Consideration of Request to Raise Water Rates Report C� 9/6/2016
� Z�
�.�
_-._�_-_-- -- —_
. Y-�'..'-__- __
� City of Cupertino
Consideration of Request to Raise
Water Rates to Customers Served by
the Cupertino Municipal Water
Syste m
September 6,2016
� _ -�_ � �,�
/_
� �
����
—� _�..-
_
Overview
• Description of Cupertino Municipal Water System
• Lease Agreement Between City and San Jose Water
Company
• California Public Utilities Commission Process
• Comparable Water Rates
• Public Comments
• Other Items to Consider
City of Cupe�tino, September 6,zoi6 Public Hearing to Consider Reasonableness of SJWC Request to Raise Water Rates
8.6%
z
1
�
�
9/6/2016 �
� y���-;, �� �
�
��;,,.. � ,
. ����
__ _.�_ ,�
��� Cupertino Municipal Water System
• 4aoo Customers
• Water for drinlcing and fire suppression to about i/3
of City �
• System Components
• 6o Miles of Underground Pipes
• 3 Sources of Water
• Wells
• Santa Clara Valley Water District
• Connection to San Jose Water Company
• i Pump Station
City of Cupertino, September 6,zoi6 Public Hearing to Consider Reasonableness of SJWC Request to Raise Water Rates
8.6°h
3
3 ,
Attathment B
� '� "" �`T .�
, � ,� �
.�
A
�.� �� � y' ESTEADRI�I - �• .vur.,e..�. .....
� ��� �. 2 i j � � �� .
t 4�
�Q j ' � � S -".a.� � ���
��� ' ' �
� � ` � � F�
4 .:'� �" . ... :� _._.. ..__......_-- �
� =4 3 � � � C+IIFORNZA WATCP 3 — �
O 3 ? ' t+ear�� 2 3ERVIif � _.. �
n +_ 2 Z
�. �. , �� :, i.� T
Y j Z .. � ,........ .,.,.,Y
� '� 3 . " ' .i.'s.v,'� �v�.nn.� �
..� .r.�.�.. � STEVEdiSCftEExBtYO ...
._.. ...._... i .. ♦e.�s �� � �'�-`§�.,�
CV➢EZT2NO WAIER � � : i�
[Lasssd o San 7a:e Watcr�nni 20221'- va�t w i � iv.��� � ���^ i�i°r
. �
.c �� W
-•_ C •
� , a x
. ___.._ _., a�L . � � � .....» ��:.z.�� � �
. �.w 4 £� _',�A..,. � " v ���
, ; .� > � �...�,�,�
__.___ = �s��gq ` �� � � '�
,: � > t
4
- ,� � 1 � � � �
� � `��.<
' . s�N 7ose wArca , ,��`'•
� . �'4., , _�.
_ ,
�y�, r,��. seav[ce -�._ \
� � ������ �' . ����� L�ry of Cupertino �
. . .. . � �_ ' Water Servic¢Ar¢as �
�� I � 4.
. ,� ,
; ` , �j--.�--._ P�v��u
� � �
� `
� �,
�
�:
,
2
9/6/2016
- �f i
_- --=_--- - -- ---
_— --.._ - -
-- ease Agreement Between City and
San Jose Water Company (SJWC)
• 25 Year Agreement dated October i997 (expires Zozz)
• SJWC Responsibilities
• All operations including repair, maintenance,water
quality and customer service/billing
• To be done in a manner similar to systems SJWC owns and
operates and in accordance to customary utility standards
• City Responsibilities
• Uphold provisions of lease
• Determine reasonableness of requests to change
rates
City of Cupertino, September 6,zoi6 Public Hearing to Consider Reasonableness of SJWC Request to Raise Water Rates
8.6`%
5
. .. ; . ., . �i.
,�.______._ ...._. � � .� � � .
California Public Utilities Commission
• Review and authorize all California investor owned
water utility companies
• Employs>i000 staff including 5 Commissioners
appointed by Governor
• Review General Rate Cases (GRC)
• Includes independent Office of RatepayerAdvocates
City of Cupe�tino, September 6,zm6 Public Hearing to Consider Reasonableness of SJWC Request to Raise Water Rates
8.6%
6
3
9/6/2016 �
� ��� �- =��
, �.
�
�: �,
, s: _���, �
------
� _.. —
Comparable Water Rates
��, �� . �. ,,.,w; . ,.,
� �� � � � ��� � � ':�i,'i t
� ..
,:
<<Sd Y�5-.� . _
.....:, .,.. ..
e�._�- ,,r�,��,_�� $8z.38 i6.5% $9i.�g�
�i.'l. , . .. ,
'�a`''``' $83.54 (8.6%) $go.a6Z �
��,���� ���:. $77•z9 z5% $8i.483 I
���,;��� �, , �94•93 9.9% $io4.48' �
��=: $75.4o i9% $88.55' I
City of Cupertino, September 6,zoi6 Public Hearing to Consider Reasonableness of SJWC Request m Raise Water Rates
8.6°/u
7
. . —_--- . — —�J. ����`i
i��
Public Comments
' 34 Received to Date
• Repetitive Issues
• Retroactive
• Water Rates Already Too High
• Exceeds Rate of Inflation
• Conserving Water and Paying More
• Poor Levels of Service
City of Cupeitino, Seprember 6,xoi6 Public Hearing m Consider Reasonableness of SJWC Request ro Raise Water Rates
8.6% $
4
9/6/2016
.
��
�-._—_ _ _=�-�
�..---��-�,-
--._ -----.
Other Items to Consider
• Year Zoi� & Zoi8 rate increases
City of Cupertino, September 6,zo�6 Public Hearing to Consider Reasonableness of SJWC Request to Raise Water Rates
8.6%
9
5