WEST VALLEY SANITATION DISTRICT OF SANTA CLARA COUNTY, CALIFORNIA AGENDA BOARD OF DIRECTORS REGULAR MEETING. 6:00 p.m., Wednesday, May 9, 2018

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1 WEST VALLEY SANITATION DISTRICT OF SANTA CLARA COUNTY, CALIFORNIA AGENDA BOARD OF DIRECTORS REGULAR MEETING 6:00 p.m., Wednesday, May 9, 2018 Campbell City Hall, City Hall Council Chamber 70 N. First Street, Campbell, California District Phone No.: (408) Chairperson: Rowena Turner Vice-Chairperson: Manny Cappello Staff Recommendation 1. Roll Call. Confirm Quorum 2. Approval of minutes of previous meeting. Action Staff Recommendation: Approve the minutes of the regular meeting of the Board of Directors of April 11, ORAL COMMUNICATIONS Information 3. This portion of the meeting is reserved for persons wishing to address the Board on any matter not on the agenda. WRITTEN COMMUNICATIONS Information 4. None. REPORTS (Items to be taken in one motion) Action 5. San Jose/Santa Clara Regional Wastewater Facility: Minutes of the March 8, 2018 regular meeting of the Treatment Plant Advisory Committee. Staff Recommendation: Accept the report. 6. Investment of District funds: Report on commingled funds invested by the County of Santa Clara for West Valley Sanitation District, as of March 31, Staff Recommendation: Accept the report. All items on the agenda are subject to action or change by the Board of Directors. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the District Secretary at (408)

2 WVSD Agenda May 9, 2018 (Continued) 7. Consolidated Income and Expense Statement of West Valley Sanitation District for the period ended March 31, Staff Recommendation: Accept the report Sewer System Management Plan (SSMP) Audit Report. 9. None. Staff Recommendation: Accept the 2018 Sewer Management Plan Audit Report. UNFINISHED BUSINESS PUBLIC HEARINGS Action 10. Second reading and adoption of Ordinance No Sewer Service and Use Charges and Hillside Zone Additional Rate increases. Staff Recommendation: A. Public Hearing to consider the adoption of ORDINANCE NO. 148, AN ORDINANCE OF THE BOARD OF DIRECTORS OF WEST VALLEY SANITATION DISTRICT OF SANTA CLARA COUNTY, AMENDING CHAPTERS 1, 4, AND 10 OF THE DISTRICT S ORDINANCE CODE RELATING TO SEWER SERVICE AND USE CHARGES AND HILLSIDE ZONE ADDITIONAL RATE. B. TABULATION AND ACCEPTANCE OF WRITTEN PROTESTS. The Secretary of the Board will tabulate the written protests received and report the results of such tabulation to the Board. C. SECOND READING AND ADOPTION OF ORDINANCE NO. 148, AN ORDINANCE OF THE BOARD OF DIRECTORS OF WEST VALLEY SANITATION DISTRICT OF SANTA CLARA COUNTY, AMENDING CHAPTERS 1, 4, AND 10 OF THE DISTRICT S ORDINANCE CODE RELATING TO SEWER SERVICE AND USE CHARGES AND HILLSIDE ZONE ADDITIONAL RATE. 11. Second Public Hearing to consider the adoption of the District s Proposed Budget for Fiscal Year Staff Recommendation: A. Open the hearing and receive comments on the West Valley Sanitation District Proposed Budget for Fiscal Year B. Adopt Resolution No , RESOLUTION OF THE BOARD OF DIRECTORS OF WEST VALLEY SANITATION DISTRICT OF SANTA CLARA COUNTY, CALIFORNIA, ADOPTING AN OPERATING BUDGET FOR FISCAL YEAR BY RATIFYING ESTIMATES OF REVENUES TO BE RECEIVED IN SUCH FUNDS AND APPROPRIATING MONIES THEREFROM FOR SPECIFIED ACTIVITIES AND ACCOUNTS AND SETTING FORTH THE CONDITIONS OF ADMINISTERING THE BUDGET, to produce the Fiscal Year Adopted Budget. 2

3 WVSD Agenda May 9, 2018 (Continued) 12. Public Hearing to consider the continuation of the Storm Drain Management Fee for Fiscal Years Staff Recommendation: A. Open the hearing and receive comments on the Storm Drain Management Fee for Fiscal Years B. Adopt Resolution No , RESOLUTION OF THE BOARD OF DIRECTORS OF WEST VALLEY SANITATION DISTRICT OF SANTA CLARA COUNTY, CALIFORNIA, APPROVING SERVICE CHARGES PURSUANT TO HEALTH AND SAFETY CODE SECTION 5471 ET SEQ. AS A TRANSITION PLAN PURSUANT TO RESOLUTION Resolution adopts the Storm Drain Management Program Fees for Fiscal Year and Fiscal Year for the Cities of Campbell, Monte Sereno, and Town of Los Gatos. CONSENT CALENDAR (Items to be taken in one motion) Action 13. Approval of payment of invoices, April 12, 2018 May 9, Staff Recommendation: Approve the payment of invoices. 14. Surplus vehicle sale MV None. Staff Recommendation: Authorization to sell the surplus vehicle identified as MV 62, a 1997 Ford Ranger pickup truck through First Capital Auction, Inc. (Vallejo, CA) to the highest bid received. NEW BUSINESS DIRECTORS' ITEMS Information 16. Directors reports, announcements, and questions. 17. District Manager s report. ADJOURNMENT 18. Adjournment. (Next meeting is scheduled for June 13, 6:00 p.m. at District s Office) 3

4 WEST VALLEY SANITATION DISTRICT OF SANTA CLARA COUNTY, CALIFORNIA BOARD OF DIRECTORS MEETING April 11, 2018 AGENDA ITEM NO /09/18 The Board of Directors of West Valley Sanitation District of Santa Clara County, California, convenes this day in regular session at 6:00 p.m. at the district office, 100 East Sunnyoaks Avenue, Campbell, California. Roll Call 1. Present: Directors Manny Cappello, Steve Leonardis, Paul Resnikoff, Mike Wasserman, and Rowena Turner, Chairperson. Absent: Director - None Staff: Jon Newby, District Manager and Engineer; Edward H. Oyama, Director of Engineering and Operations; John Bakker, District Counsel; and Lesha Luu, Secretary. Approval of Minutes of Previous Meeting 2. Approve the minutes of the regular meeting of the Board of Directors of March 14, Motion by/second by: Wasserman/Leonardis to approve the minutes of the previous meeting. Motion passed unanimously. Oral Communications 3. None. Written Communications 4. None. Reports (Items to be taken in one motion) 5. San Jose/Santa Clara Regional Wastewater Facility: Minutes of the February 8, 2018 regular meetings of the Treatment Plant Advisory Committee. 6. Investment of District funds: Report on commingled funds invested by the County of Santa Clara for West Valley Sanitation District, as of February 28, 2018; and report from County Controller as of December 31, Consolidated Income and Expense Statement of West Valley Sanitation District for the period ended February 28,

5 WEST VALLEY SANITATION DISTRICT OF SANTA CLARA COUNTY, CALIFORNIA BOARD OF DIRECTORS MEETING April 11, Status report on inflow and infiltration reduction program. Motion by/second by: Wasserman/Resnikoff to add the Reports, Items 5-8, to the Consent Calendar and approve Consent Calendar, Items 5-8 and Motion passed unanimously. Unfinished Business 9. None. Public Hearings 10. First of the two Public Hearings to consider the District s Proposed Budget for Fiscal Year The second hearing and adoption is scheduled for May 9, Open the public hearing and receive comments on the West Valley Sanitation District Proposed Budget for Fiscal Year Continue the public hearing to the Board Meeting of Wednesday, May 9, 2018, to allow for further comments and modifications. Motion by/second by: Cappello/Wasserman to close the public hearing and approve the continuation of the second hearing and adoption of the West Valley Sanitation District Proposed Budget for Fiscal Year at the Board Meeting on Wednesday, May 9, Motion passed unanimously. Consent Calendar (Items to be taken in one motion) 11. Approval of payment of invoices, March 15, 2018 April 11, Resolution to set a time and place of public hearing to consider placing delinquent fees and charges on the Fiscal Year Tax Roll. Adopt RESOLUTION NO , RESOLUTION SETTING A TIME AND PLACE OF PUBLIC HEARING TO CONSIDER PLACING DELINQUENT FEES AND CHARGES FOR FISCAL YEAR ON THE YEAR TAX ROLL. The resolution sets June 13, 2018 as the date of hearing. Motion by/second by: Refer to motion made under Report section. New Business 13. Status report on sewer service charge increases and introduction of Ordinance Code No. 148: A. Introduce Ordinance No. 148 by reading of ordinance title: AN ORDINANCE OF THE WEST VALLEY SANITATION DISTRICT BOARD OF DIRECTORS AMENDING CHAPTERS 1, 4, AND 10 THE DISTRICT S ORDINANCE CODE RELATING TO THE SEWER SERVICE AND USE CHARGES AND HILLSIDE ZONE ADDITIONAL RATE. B. Conduct second reading of Ordinance No. 148 at the Board meeting on Wednesday, May 9, C. Proceed with the public hearing schedule for Wednesday, May 9, 2018 to receive and tabulate all valid protests received on the proposed sewer service and use charges and hillside zone additional sewer rate increases. The District 2

6 WEST VALLEY SANITATION DISTRICT OF SANTA CLARA COUNTY, CALIFORNIA BOARD OF DIRECTORS MEETING April 11, 2018 Manager reported staff has proceeded with mailing out nearly 36,000 notices of the proposed rate increases to property owners within the District. To date, the District has received 13 written protest for the monthly sewer service and use charges and 3 for hillside zone additional rate. Staff will continue to monitor and record responses from the property owner for the public hearing in May. The rate increase also requires enabling ordinances to be adopted in parallel with the Prop 218 rate approval process. The report includes Ordinance No. 148 that makes the required changes to the Ordinance to adjust the rates consistent with the property owner rate notifications. Motion by/second by: Cappello/Resnikoff to accept the first reading of Ordinance No. 148 and schedule second reading and adoption of Ordinance 148 on May 9, Motion passed unanimously. 14. District Strategic Plan (FY to ). Adopt the updated District Strategic Plan for Fiscal Years to The District Manager reported the Strategic Plan provides staff guidance in its planning, budgeting, and development of work plans. Staff annually plans action items using the 5-year Strategic Plan for the Board s consideration in June and considers any current events and emerging issues to ensure alignment of the annual objectives to long-range strategies. The updated Strategic Plan covers 2018 to 2023 and reflects refinements to the objectives to achieve the Board s adopted Vision, Mission, and Goals. Updates reflect the most current regulatory issues, current challenges in the industry, and the specifics in the region. Upon adoption, staff will use the strategic plan objectives for planning next fiscal year s action items for the Board s consideration in June. Motion by/second by: Resnikoff/Leonardis to adopt the updated District Strategic Plan for Fiscal Years to Motion passed unanimously. Closed Session 15. The Board adjourns at 6:08 p.m. to closed session - Conference with Legal Counsel existing litigation. (Paragraph (1) of subdivision (d) of Section ) Name of case: County Sanitation District, West Valley Sanitation District, Cupertino Sanitary District, and The City of Milpitas v. The City of San Jose, The City of Santa Clara, and Does 1 Through 50, Inclusive, Santa Clara Superior Court Case No. 18CV The following directors were present: Manny Cappello, Steve Leonardis, Paul Resnikoff, Rowena Turner, and Mike Wasserman. Reconvene in Open Session 16. The Board reconvene in open session at 6:11 p.m. in open session. Nothing to report out. Directors Items 3

7 WEST VALLEY SANITATION DISTRICT OF SANTA CLARA COUNTY, CALIFORNIA BOARD OF DIRECTORS MEETING April 11, Director s reports, announcements, and questions. Director Wasserman recommends the District to do an annual rate increases each year in small increment for capital improvement and reserve on infrastructure replacement. 18. Manager reported the Board of Directors annually review the District Manager s performance and compensation. Consistent with the policy adopted in January 2005 titled Compensation Policy for District Manager and Engineer, the policy states that an ad hoc subcommittee shall meet as necessary with the manager to review performance and compensation. The subcommittee will report to the Board of Directors and make recommendations in a timely manner for adjusting the manager s compensation. The subcommittee shall consist of the Board Chair and Vice-Chair or their designated alternates. The District Manager s employment contract also expires on June 30, To accommodate the schedule for adoption of the District s objectives and proposed budget, and in consideration of the employment contract expiration date, the District Manager requested the Board Chair and Vice-Chair, or designated alternates, to meet as a subcommittee with the District Manager to review his performance and compensation and report to the Board of Directors with the subcommittee s recommendations at the Board Meeting in June. The Board appointed Directors Turner and Cappello as the ad hoc subcommittee. Adjournment 19. There being no further items of business, the meeting was adjourned at 6:19 p.m. The next Board Meeting is scheduled for May 9, 2018, at 6:00 p.m. at the Campbell City Hall, 70 N. First Street, Campbell, CA Attest: ROWENA TURNER, CHAIRPERSON Secretary 4

8 AGENDA ITEM NO. 5 05/09/18

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11 INVESTMENT REPORT AS OF MARCH 2018 AGENDA ITEM NO /09/18 COMMINGLED FUNDS INVESTED BY THE COUNTY OF SANTA CLARA FOR WEST VALLEY SANITATION DISTRICT OF SANTA CLARA COUNTY INTEREST FUND FUND BALANCE 7/1/17 TO DATE GENERAL (OPERATIONS) $ 30,857, $220, RESTRICTED HILLSIDE 839, , TRUST 468, , (note 1) TRUST STORM 875, , $ 33,041, $238, EARNED INTEREST RATES (%) FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR st Quarter (July-Sept) (note 2) 2nd Quarter (Oct-Dec) (note 2) 3rd Quarter (Jan-Mar) (note 2) 4th Quarter (Apr-June) (note 2) Note (1): Interest earned on the Trust Fund is posted to the General (Maintenance and Operations) Fund. Note (2): Interest on all funds is posted quarterly, following the quarter in which the interest is earned; i.e. interest earned in the first quarter is posted in the second quarter.

12 AGENDA ITEM NO. 7 05/09/18 WEST VALLEY SANITATION DISTRICT CONSOLIDATED EXPENSE STATEMENT BUDGET REPORT NINE MONTHS ENDED MARCH, 2018 YR TO DATE BUDGET PERCENT OF YEAR EXPIRED, 75 UNDER LESS MODIFIED YEAR TO DATE % (OVER) EXP. EXPENSES BUDGET EXPENDED EXPENDED BUDGET % SALARIES AND EMPLOYEE BENEFITS SALARIES $3,410,990 $2,367,779 69% $1,043,211 31% BENEFITS 1,995,728 1,271,742 64% 723,986 36% TOTAL SALARIES & BENEFITS 5,406,718 3,639,521 67% 1,767,197 33% OPERATING EXPENSES DIRECTORS' FEES 11,800 5,250 44% 6,550 56% GASOLINE, OIL & FUEL 60,000 36,978 62% 23,022 38% INSURANCE 275, ,826 75% 68,174 25% MEMBERSHIPS 42,350 30,545 72% 11,805 28% OFFICE EXPENSE 56,300 34,215 61% 22,085 39% INFORMATION SERVICES 290, ,932 67% 95,568 33% CONTRACTUAL SERVICES 301, ,510 93% 20,565 7% TREATMENT PLANT 9,735,726 5,021,138 52% 4,714,588 48% PROFESSIONAL SERVICES 1,129, ,794 32% 770,841 68% PRINTING & PUBLICATIONS 28,000 11,125 40% 16,875 60% RENTS & LEASES 12,000 6,945 58% 5,055 42% REPAIRS & MAINTENANCE 365, ,898 50% 183,852 50% PROFESSIONAL DEVELOPMENT 113,750 33,040 29% 80,710 71% UTILITIES 130, ,528 80% 25,972 20% OTHER 62,350 8,415 13% 53,935 87% REVENUE BOND DEBT SERVICE 823, ,617 77% 190,617 23% TOTAL OPERATING EXPENSES 13,437,970 7,147,756 53% 6,290,214 47% GENERAL FIXED ASSETS 663, ,202 67% 217,798 33% SUBSURFACE LINES & MISC. CONSTRUCTION PROJ. 5,762,372 1,260,743 22% 4,501,629 78% SEPTIC SYSTEM ABANDONMENT PROGRAM 110,000 6,044 5% 103,956 95% TREATMENT PLANT & JOINT LINES 13,064,359 5,540,365 42% 7,523,994 58% TOTAL CAPITAL OUTLAY 19,599,731 7,252,354 37% 12,347,377 63% TOTAL EXPENDITURES $38,444,419 $18,039,631 47% $20,404,788 53%

13 WEST VALLEY SANITATION DISTRICT CONSOLIDATED INCOME STATEMENT BUDGET REPORT NINE MONTHS ENDED MARCH, 2018 YR TO DATE RCD. PERCENT OF YEAR EXPIRED, 75 (UNDER) LESS MODIFIED YEAR TO DATE % OVER BUDGET INCOME BUDGET RECEIVED RECEIVED BUDGET % OPERATING INCOME SEWER SERVICE CHARGES-TAX ROLL $24,510,838 $14,196,434 58% ($10,314,404) -42% SEWER SERVICE CHARGES-OTHER 1,123,400 1,065,069 95% (58,331) -5% CONNECTION FEES 720, ,494 56% (314,506) -44% PERMIT & INSPECTION FEES 296, ,419 82% (53,581) -18% LABOR AND OVERHEAD BILLED 30,000 19,007 63% (10,993) -37% PLAN CHECKING FEES 4,000 2,082 52% (1,918) -48% TREATMENT PLANT CAPACITY FEES 280, ,419 63% (103,581) -37% STORM CLEANING FEES 90,000 72,376 80% (17,624) -20% STORM FUND ADMINISTRATIVE FEE 7,630 37, % 30, % HILLSIDE FEE COLLECTED 77,220 45,489 59% (31,731) -41% TOTAL OPERATING INCOME 27,139,088 16,262,755 60% (10,876,333) -40% NON-OPERATING INCOME INTEREST - COUNTY 263, ,053 85% (38,753) -15% SEWER REPLACEMENT & EXTENSION FINANCING - P&I 44,481 24,969 56% (19,512) -44% OTHER NON-OPERATING REVENUE 4, , % 262, % TOTAL NON-OPERATING REVENUE 312, , % 204,239 65% TOTAL INCOME 27,451,600 16,779,506 61% (10,672,094) -39% TOTAL EXPENDITURES 38,444,419 18,039,631 47% (20,404,788) -53% NET INCOME (EXPENDITURES) (10,992,819) (1,260,125) $ 9,732,694 CASH BALANCE JUNE 30, ,047,785 32,047,785 DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE 103,134 CHANGE IN DUE TO (FROM) OTHER FUNDS (32,840) CHANGE IN DUE TO/FROM OTHER ORGANIZATIONS 0 CASH BALANCE MAR. 31, 2018 $ 21,054,966 $ 30,857,954

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17 West Valley Sanitation District Sewer System Management Plan (SSMP) 2018 SSMP Audit Table of Contents SSMP Audit Certification. i Executive Summary.. ii Purpose... 1 Regulatory Requirement. 2 SSMP and Audit History... 2 System Overview.. 2 SSMP Effectiveness. 3 SSO Spill Indices 3 Operations Performance Goals 7 Element Performance Measure. 8 CIP Projects and Studies SSMP Audit Checklist.. 24 Recommended Updates/Revisions. 31

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19 West Valley Sanitation District Sewer System Management Plan (SSMP) 2018 SSMP Audit Executive Summary The 2018 SSMP Audit is a biennial internal audit of the District s Sewer System Management Plan (SSMP). Its focus is to validate the SSMP s compliance with mandated requirements, evaluate the SSMP s effectiveness, identify deficiencies in the SSMP, and recommend actions to address these deficiencies. The SSMP Audit (Audit) is a critical process that promotes continuous improvement of the District s SSMP, resulting in enhanced effectiveness and efficiency of District operations. Ultimately, the SSMP provides the necessary guidance to raise and maintain exceptional performance levels as embodied in the District s Vision Statement: To be an industry leader in the greater San Francisco Bay Area by providing our customers with high-quality and value added services Background The development and implementation of the SSMP is a requirement of the State Water Resources Control Board Order No DWQ, Statewide General Waste Discharge Requirements for Sanitary Sewer Systems (WDRs). The purpose of the SSMP is to document how the District manages, operates, and maintains its sewer collection system. The SSMP Audit is also described in Element X of the SSMP and is required to be performed at least once every two years. The Audit provides an opportunity for the District to review each element of the SSMP to ensure that the District is compliant and current with the WDRs, so that the District s operations are accurately and fully described, and to evaluate the effectiveness of the District s SSMP in terms of key performance measurements. Summary The 2018 SSMP Audit was performed as part of the District s Strategic Plan Action Item B.4.1. This Strategic Plan Team consisted of the District Manager and Engineer, Director of Engineering and Operations, and Senior Civil Engineer. After review of each of the eleven elements of the SSMP and the District s success in meeting its performance goals, it was determined that the SSMP is in compliance with the requirements of the WDRs, except for some necessary administrative and material updates to charts and tables. The District has reliably been in compliance with past SSMP Audits and SSMP re-certifications and Board adoptions. In terms of SSMP effectiveness, this is evaluated by reviewing and measuring achievement of key performance indicators, or performance measurements ii

20 that have been established. These performance indicators include: 1. SSO spill rate and volumes indices, and historical trending A spill rate indices of <3.0 spills/100 miles is indicative of a high performing collection system. In 2017 the District attained indices of 2.41 and 1.43 for its sewer mains and sewer laterals, respectively. Over the last thirteen years, the District s 5-year running averages for SSOs shows a continuous downward trend. 2. Operations Department performance goals Nearly all FY Operations Performance Goals were met or exceeded. 3. Performance Monitoring and Measurement Parameters A review of each of the eleven elements of the District s SSMP indicates that the performance monitoring and measurement are in place to ensure that the SSMP remains relevant, current, and effective. 4. CIP projects and studies A significant number of CIP projects and studies are currently active. It is estimated that there will be over $25 million of CIP projects shown in the updated 5 Year CIP. As indicated by the achievement of essentially all key performance indicators, the District SSMP has proven to be an effective tool in the promotion of continuous improvement. The examination of the District s successes and challenges in achieving these performance goals, creates an opportunity to perform self-evaluation and utilize innovation and make necessary changes in District operations. iii

21 West Valley Sanitation District Sewer System Management Plan (SSMP) 2018 SSMP Audit PURPOSE The purpose of the SSMP Audit (Audit) is to evaluate the effectiveness of the District s SSMP, to ensure that all elements within the SSMP are compliant and current with the State Water Resources Control Board Statewide General Waste Discharge Requirements for Sanitary Sewer Systems (WDRs), and that the SSMP is being implemented and managed appropriately. The Audit is addressed as Element X in the SSMP and is a critical process that promotes continuous improvement of the District s SSMP ultimately resulting in enhanced effectiveness and efficiency of District operations. As one measure of SSMP effectiveness, the 2018 Audit includes the examination of events, experiences, and data from calendar years 2016 and 2017 as well as trending data since Successes and challenges are identified and correlated with strengths and weaknesses of District s SSMP so that specific SSMP Element updates and modifications can be made. This year the Audit will just precede the five year SSMP recertification and adoption by the District Board in August of The recertified SSMP will incorporate as many of the recommended changes made in this Audit that can reasonable be made in this short timeframe. The District s SSMP Audit consists of two major components: SSMP Effectiveness and SSMP Compliance. The SSMP Effectiveness is evaluated by discussion and review of these key performance indicators, or measurements: 1. SSO spill rate, volume indices, and trends 2. Operations Department performance goals 3. Performance Monitoring and Measurement Parameters 4. CIP projects and studies SSMP Compliance is evaluated by a review of each of eleven SSMP elements with a summary of recommendations described in the Narrative for Recommended Updates and Revisions found at the end of this Audit. Since the District SSMP s initial adoption in August 2008, these audits have helped staff identify necessary administrative and functional changes. The administrative changes tend to be dynamic and include: updates to the organizational chart and contact information, additional collection system information, inclusion of select mapping examples, etc. The functional revisions reflect changes including: results of significant studies completed and discussion of ongoing studies (Hydraulic Capacity Analysis, Risk Assessment Study, Inflow and Infiltration Reduction Program), changes in maintenance operations, Capital Improvement Program (CIP) details, regulatory and SSO Response Plans, etc. The current SSMP was adopted Page 1 of 32

22 by the District Board on August 7, 2013 as part of its mandated five year certification and then recertified and adopted on April 8, 2015 when it was updated to reflect the 2014 SSMP Audit recommendations and other significant updates. The last audit of this SSMP was completed in 2016 which was accepted by the District Board on May 11, Reference the SSMP and Audit section below. REGULATORY REQUIREMENT Prior to calendar year 2012 the SSMP Audit was submitted on an annual basis along with the District s Annual SSO Report to the San Francisco Bay Regional Water Quality Control Board (RWQCB). The requirement for an Annual SSO Report and SSMP Audit was discontinued per RWQCB s letter, dated October 3, 2012, however, the SSMP Audit is still required to be submitted at least every two years starting on May 2, 2014 in accordance with the State Water Resources Control Board Order No DWQ. The District continues to produce the Annual SSO Report as one of the District s obligations described in Section II.D of the Settlement Agreement with Northern California River Watch (NCRW), currently known as California River Watch. SSMP AND AUDIT HISTORY The following is a tabulation of the District s SSMP and SSMP Audits history showing District compliance with RWQCB and SWRCB regulations. The dates shown below indicate when these documents were accepted and or adopted by the District Board. YEAR SSMP SSMP AUDIT REMARKS /08/08 03/06/09 SSMP/Audit submitted w/2008 annual report /12/10 Audit submitted w/ 2009 annual report /28/11 Audit submitted w/ 2010 annual report /15/12 Audit submitted w/ 2011 annual report Annual audit/report not req d SFBRWQCB /07/13 05/14/14 SSMP/Audit submitted /08/15 05/11/16 SSMP/Audit submitted (08/08/18) (05/09/18) SSMP/Audit to be submitted (x/x/18) indicates anticipated acceptance/adoption date by the District Board SYSTEM OVERVIEW The District owns and maintains a gravity sewer wastewater collection system serving the populations of the City of Campbell, City of Monte Sereno, Town of Los Gatos, portions of the City of Saratoga and intervening unincorporated portions of the County of Santa Clara within its service area encompassing 28.3 square miles. In total there are approximately 46,300 connections serving a population of nearly 110,000 people. The wastewater collection system is comprised of 415 miles of sewer main and 200 miles of sewer lateral located primarily within the public right-of-way (lower lateral). The District s sewer mains range in diameter from 6 to 39 inches, with approximately 90% of these lines being 8- inches in diameter or smaller. In addition, the District co-owns 51 miles of joint sewer trunk Page 2 of 32

23 lines ranging in size from 10 to 90 inches with the City of San José. Nearly all District owned sewer laterals are 4-inches in diameter, while a few commercial and multiple residential properties use 6-inch laterals. The District also operates and maintains three small pump stations (11 and 20 hp) in the foothills serving isolated local subdivisions. In Fiscal Year the system transported an average flow of approximately 9.6 million gallons of wastewater per day or a total of 3.5 billion gallons of wastewater to the San José - Santa Clara Regional Wastewater Facility (RWF) for treatment, disposal, and reuse. Along with other tributary agencies, the District contributes its allotted share of the RWF s CIP and O&M costs. The responsibility of owning and maintaining lower sewer laterals is unique to this District and a select number of other wastewater collection agencies. The added challenge of being responsible for approximately 36,000 sewer laterals not only requires considerable more effort and resources to maintain, but reflects on the District s reporting of Sanitary Sewer Overflows (SSOs) as compared to agencies that do not have this responsibility. In order to properly compare the District s SSO record to other collection systems, the District segregates its main line and lateral SSOs. For these same reasons, the SWRCB has recently modified their database to provide statistics that separate the main and lateral SSOs events. SSMP EFFECTIVENESS The true value and measure of the District s SSMP is reflected in the level of performance demonstrated by the District. Theoretically, a highly effective SSMP should result in a highly effective and efficient operation. The degree of SSMP effectiveness is evaluated by reviewing and measuring key performance indicators (performance measurements) that have been established for District operations. These include SSO Spill Rate and Volume Indices, SSO Spill Rate Volume Trends, Operations Department Performance Goals, Performance Monitoring and Measurement Parameters (SSMP Element IX), and completion of CIP projects and studies. Each of these performance indicators are further described below. SSO Spill Rate and Volume Indices One of the primary indicators of collection system performance and SSMP effectiveness is the examination of SSO Spill Rate Indices and its comparison with other collection system agencies throughout the state and in the San Francisco Bay Region (Region 2). Traditionally, the common benchmark or spill rate indices utilized by wastewater collection agencies has been the total number of mainline SSOs per 100 miles of sewer main owned and maintained by an agency. A long standing and accepted indicator of a high performing sewage collection system is achieving a total spill rate of 3.0 SSOs per 100 miles. The SWRCB has recently included lateral SSOs indices (using the same SSOs per 100 miles criteria), indices related to SSO volumes per capita, and indices related to SSO spill categories (Category 1, 2, and 3). The 2016 and 2017 CIWQS SSO indices are presented in the CIWQS table and summarized below. Page 3 of 32

24 CIWQS Collection System Spill Summary (2016) As illustrated below in calendar year 2016 the District achieved 2.16 and 2.86 spill indices for its sewer mains and sewer laterals, respectively. Both are comfortably below the high performing indices rate of 3.0 SSOs per 100 miles. In terms of the breakdown of SSO in spill categories and volume, the District rates are well below those averages shown for state and regional numbers. Sewer Main Indices District State Region Category 1 (SSO/100 mi) Category 2 (SSO/100 mi) Category 3 (SSO/100 mi) Total No. (SSOs/100 mi) Total Volume (gal/1000 capita) 84 2,854 6,840 Sewer Lateral Indices District State Region Category 1 (SSO/100 mi) Category 2 (SSO/100 mi) Category 3 (SSO/100 mi) Total No. (SSOs/100 mi) Total Volume (gal/1000 capita) Page 4 of 32

25 CIWQS Collection System Spill Summary (2017) As illustrated below the District achieved 2.41 and 1.43 spill indices for its sewer mains and sewer laterals, respectively. Similar to the 2016 CIWQS data, both are comfortably below the high performing indices rate of 3.0 SSOs per 100 miles. In terms of the breakdown of SSO in spill categories and volume, the District rates the District rates are well below those averages shown for state and regional numbers. Sewer Main Indices District State Region Category 1 (SSO/100 mi) Category 2 (SSO/100 mi) Category 3 (SSO/100 mi) Total No. (SSOs/100 mi) Total Volume (gal/1000 capita) 49 11,375 4,258 Sewer Lateral Indices District State Region Category 1 (SSO/100 mi) Category 2 (SSO/100 mi) Category 3 (SSO/100 mi) Total No. (SSOs/100 mi) Total Volume (gal/1000 capita) SSO Trends Page 5 of 32

26 The historical trending of District SSO spills and volumes is another key performance indicator of collection system performance and SSMP effectiveness. By examining the thirteen year (2005 to 2017) SSO performance record, a declining trend in spill occurrence, volume, and spill indices can reveal if the programs and measures identified in the SSMP are demonstrating success. It could also indicate if actual District operations reflect the stated SSMP elements and whether these elements are being reviewed, modified, and improved with the goal of achieving continuous improvement. The District has adopted the use of five-year running averages in examining its SSO spill occurrences, volumes, and SSO Indices to smooth out periodic anomalies that can sometimes skew results. As shown in the graphs and chart below, the thirteen year trend line reveals the general downward trend for all SSO categories for both sewer main and sewer laterals. Sewer Main SSO History NO. OF SPILLS Total SSO Occurrences Total SSO Volume Running 5-Yr Volume Trend CALENDAR YEAR VOLUME (1,000 Gal) Lateral Sewer SSO History NO. OF SPILLS Total # SSOs Running 5-Yr #SSO Trend No. of Stoppages # OF STOPPAGES Historical SSO Indices CALENDAR YEAR Page 6 of 32

27 (Total SSOs/100 Miles) YEAR SEWER MAIN SEWER LATERAL ANNUAL INDICES 5-YEAR RUNNING AVG ANNUAL INDICES 5-YEAR RUNNING AVG Operations Performance Goals Annually, goals are established for the Operations Department for its performance measurements. These goals are considered stretch goals requiring a significant effort to achieve, so typically only some goals are achieved and occasionally exceeded. The primary key performance measurements and achievements for FY are: Maintenance Activity Goal Achievement Sewer Main Cleaning (all methods) 1,700,000 lf 1,650,000 lf Sewer Main CCTV 275,000 lf 293,000 lf Lateral Cleaning 1,500 ea 1,470 ea Lateral CCTV 1,000 ea 660 ea Response Time (Business Hours) 30 min 27 min Response Time (After Business Hours) 60 min 35 min Loss Time Accidents zero zero During this period the Operations staff performed very well and was able to achieve (or nearly achieve) all but one goal. It is important to note that the Operations staff, which consists of ten field staff and two office staff, also performs other maintenance functions besides those directly related to collection system maintenance. Other maintenance Page 7 of 32

28 functions include fleet maintenance, pump station maintenance, storm drain maintenance, and mechanical maintenance. Element Performance Monitoring and Measurement Element IX of the SSMP addresses the process of monitoring, measurement, and initiating program modifications to ensure that the SSMP continues to be relevant, current, and effective. The criteria for monitoring and measurement for each SSMP Element is described in Table IX-1of the SSMP. All SSMP elements and their measurements are discussed below and also addressed in the SSMP Audit Checklist found at the end of this document. Element I - Mission, Goals, and Objectives a) District Vision, Mission, and Values The District s overall Mission, Vision, and Values are described in the District s five-year (2013) Strategic Plan. The District has updated its Strategic Plan for the next five years (FY to FY ) and was adopted by the Board in April The original Mission, Vision, Values and Goals have remained intact in the new Strategic Plan, which will be referenced in the updated five-year (2018) SSMP. The District Vision, Mission, and Values are central drivers for the District s purpose and direction. It establishes the guidance for the quality and quantity of work it does, how the work get done, and what it aspires to ultimately achieve. The degree to which the Vision, Mission, and Values is achieved is demonstrated by the District s accomplishments, in terms of day to day activities, completion of Strategic Plan Action Items, the achievement of results previously illustrated in the SSMP Effectiveness section, and recognition bestowed upon the District for its performance. The District has been recently been recognized by a few industry organizations as demonstrating excellence in a variety of management areas, as described below: i. The most recent recognition given to the District for excellence in management and performance of its collection system, the California Water Environment Association - Santa Clara Valley Section awarded the District its Collection System of the Year Award in 2010 and ii. In recognition of the District s workers compensation loss record for FY , the California Sanitation Risk Management Agency (CSRMA) awarded the District with the Workers Compensation Excellence Award. The most recent prior awards were issued to the District for FY and FY Page 8 of 32

29 iii. The District was awarded its second District Transparency Certificate of Excellence from the Special District Leadership Foundation (SDLF) in February The previous Certificate was awarded in b) District Goals and Objectives The District Board approved the Strategic Plan Goals and Objectives for FY , which includes 4 goals, 10 objectives, and 13 action items. The Goals and Objectives remain focused on continuous improvement with an emphasis on gaining efficiency and effectiveness, staff development and training, fiscal and financial health, improving data and information management, and long range planning. The Goals stated in the current Strategic Plan remain relevant and will be utilized in the new Strategic Plan. The specific Goal related to the direct management and operation of the collection system is Goal B - Sewer System Management. Goal B states Promote continuous improvement of our services through the optimization of the maintenance and capital improvement programs. Specific performance goals for the operation of the collection system are discussed in the first section of this SSMP Audit as part of SSMP Effectiveness. The updated Objectives in the new Strategic Plan will be included in the new SSMP. Prior to each fiscal year, new Action Items are developed by management and supervisory staff. They reflect prioritized items that are significant to the success of each department. All FY17-18 Action Items appear to be on track for completion by June 30, Element II Organization a) Staffing Levels The District has maintained staffing levels, ranging between 28 and 29 total employees for a many number of years. A District Organizational Chart is provided in the SSMP to show the District s hierarchy, but it requires updating. An annual review of current and future workload is performed by management to evaluate whether changes in staffing is warranted. Consultants, part time staff, or summer interns are typically utilized to supplement department staff for specific tasks and also when a temporary increase in workload is anticipated. In FY the District s workforce was reduced by one Assistant Engineer Permits, one Account Clerk and one Supervising Lead Worker due to change of employment or retirement. Two new hires have been made for their replacement, including one Senior Engineering Technician and one Senior Account Clerk. The replacement for the Supervising Lead Worker is pending completion and approval of the updated position Page 9 of 32

30 description. A revised Organizational Chart will reflect current staffing at the time the new SSMP is submitted to the Board for adoption. b) Board of Directors The Board of Directors list is not current and requires regular updating. Individual members on Board of Directors may change from one calendar year to the next depending on their respective term of office and or appointment by their municipality, and annual changes in Chair and Cochair positions. Element III Legal Authority a) District Ordinance The District Ordinance provides the legal authority for the proper operation of the District, in particular Ordinance Chapters 6, 7, and 13. These Chapters are discussed and included in the SSMP. The District Ordinance is routinely reviewed and updates made as needed to clarify, update, and strengthen the ability of the District to carry out its responsibilities to operate and maintain its collection system. The District utilizes the assistance of the District Counsel (Meyers Nave) to perform a review and recommend updates to the District Ordinance. The following District Ordinances have been updated and or are proposed for addition in order to provide the necessary legal authorities: i. June 14, 2017, Amending Chapters 1, 6, 7, 9, 10, and 13 and adding Chapter 14 (Administrative Enforcement) to the District Ordinance (Ordinance 146) These amendments basically involve necessary revisions to clarify the requirements for the design, construction, modification and repair of public and private sewers, as well as associated permitting requirements. The addition of Chapter 14 provides an additional enforcement remedy that can be exercised administratively, separately or in conjunction with the civil and criminal enforcement mechanisms already cited in Chapter 7 an 13. ii. June 14, 2017, Adopt Section of Chapter 14 (Ordinance 146) Administrative Enforcement provide for the establishment of administrative fines for violations of the Code as allowed in Section of Chapter 14, which states: The fines, penalties, and late charges imposed under this Chapter shall be set by a Resolution of the District Board of Directors. iii. December 13, 2017, Amending Section and of Chapter 10 (Ordinance 147) - This amendment updates the Administrative and Miscellaneous Fee Schedule and Sewer Connection Fee Schedule to reflect the Bartle Wells Associates report findings that calculates actual cost of service. iv. May 9, 2018, Amending Chapters 1, 4, and 10 (Ordinance 148) Establishment of new Sewer Service and Use Charges and Hillside Page 10 of 32

31 Zone Sewer Rate to coincide with Bartle Wells Associates cost of service study. Element IV - Operation and Maintenance Program a) Resource and Budget Allocation The Operation and Maintenance (O&M) budget is adjusted on an annual basis to reflect anticipated needs for the following fiscal year. Not including staffing and treatment plant costs, the O&M budget constitutes nearly 25% of the entire District budget. The District has consistently provided adequate resources and budget for O&M. Over time the O&M budget has gradually increased reflecting typical cost inflation associated with utilities, materials, and services. As of June 30, 2018, storm water system maintenance is no longer a service being provided by the District on behalf of the West Valley Clean Water Program. The West Valley Clean Water Program (District s member entities) will become self-sufficient in performing all of their own storm inspection and maintenance responsibilities. b) Collection System Mapping All main line and manhole structure locations and their respective asset information are continuously maintained and are current and accurate. Due to the lack of lateral information provided on the original paper sewer mapping for the District, lateral locations may not have been provided and are not as complete as sewer main locations. Lateral and property line cleanout locations (if present) are systematically being confirmed through Global Positioning System (GPS) surveys to get accurate placement on mapping as part of the Lateral Maintenance Program which began in mid To date, approximately 82% of the estimated 36,000 District laterals have been mapped. The District has been utilizing a Computerized Maintenance Management System (CMMS) and Geographic Information System (GIS) since However, full integration of software for maintenance use in the field required considerable effort to rectify mapping accuracy and the ability to extract work order and asset information. Paper mapping and work orders were utilized in the field until 2012 when electronic (GIS) mapping information was made available to field staff through implementation of field integration software/hardware (InfraMap/Panasonic Toughbooks). This allows maintenance worker access to the most current mapping and the most relevant asset information. Inconsistencies in mapping and asset information are readily and regularly updated. Field staff has the ability to provide redline markups and notations showing needed mapping changes in facility locations, dimension changes, or other pertinent notations using InfraMap. GIS Page 11 of 32

32 mapping edits are performed by the GIS Analyst in Engineering and are typically accomplished weekly. Storm Drain Mapping is regularly used as part of the GIS Mapping layer, allowing field staff to anticipate flow direction and interception points for SSOs entering the storm system. Other valuable information accessible through our GIS system include: property addresses, property information, aerial map information, and GPS location of laptops that are visible on aerial maps. To help improve safety, the District is considering adding identification of manholes experiencing high levels of hydrogen sulfide gas (H 2 S). This will require considerable time to compile, but efforts to gather this information may begin as soon as FY c) Preventive Maintenance The District s sewer mains, sewer laterals (lower laterals), and pump stations are on a solid preventive maintenance program. Assignment of cleaning frequencies for each pipe asset is adjusted as needed to reflect findings during cleaning operations, observations during CCTV inspections, and or stoppage/sso events. Pump station testing and inspections are performed weekly with physical pump inspections taking place on an annual basis. To validate the effectiveness of the District s preventive maintenance program, as discussed in the beginning of this Audit under SSMP Effectiveness, the District s goal for achieving a SSO Spill Rate for mains and laterals of less than 3.0 SSOs/100 miles is considerably lower than state and regional averages. Thirteen years of historical data (2005 to 2017) of SSO occurrences, volumes, and indices indicates the District is achieving its goal of maintaining a continuing downward trend. Sewer Main Maintenance i. Nearly all mainline cleaning is based on a 24 month frequency (Geozone cleaning). There are 24 Geozones created in the District Service Area and each Geozone is assigned for cleaning approximately each month. This cleaning protocol allows efficient travel and use of resources by focusing effort in a specific geographic area. ii. In addition to Geozone cleaning, higher frequencies are specified for special lines (siphons, grease and root problem lines, etc). The use of longer frequencies (36 and 48 month) is being used for newly rehabilitated HDPE lines and major trunk lines. iii. In FY cleaning production goals was established at 1.7 million lf for sewer mains. It appears that this goal will be achieved. Page 12 of 32

33 Sewer Lateral Maintenance i. The Lateral Maintenance Program was implemented in mid-2009 and approximately 37% of the 36,000 laterals have been serviced to date. Prior to this Program, the maintenance on laterals was essentially reactive and generally only performed when a service call was received. However, the District did maintain a 6-month cleaning list for trouble laterals. ii. A refinement of the Lateral Maintenance Program was initiated in 2015 to replace the initial 15 year cleaning frequency assigned to all laterals. Currently, lateral cleaning frequencies of 6, 18, 36, 60, 120, 180, and 300 months are assigned depending on selected conditions. iii. In FY a cleaning goal for sewer laterals was established at 1,500 and it appears that this will be achieved. Pump Station failures are very infrequent and are limited to temporary power loss events, loss of communication linkages, or float failures. Since these pump stations have been designed to retain from 2 to 3 days of wastewater flow, there has never been any SSO events as a result of these failures. The pump station is monitored by a communication service (Mission Communication) that provides alerts of unusual operating conditions or pump station failures. The District s service call procedures after normal work hours rely on the use of the County Communication call center. The District s goal for responding to service calls during and after working hours is 30 minutes and 60 minutes, respectively. Maintenance staff has consistently met these goals. d) Rehabilitation and Replacement The average age of the District collection system is approximately 50 years old, with the oldest age of pipe over 100 years. Although age is not the single determining factor for rehabilitation or replacement, it is one parameter to be considered when evaluating the overall viability of the system. There are two major components of the District s Capital Improvement Program (CIP); Sewer Rehabilitation Program and the Sewer Repair Contract. The Sewer Rehabilitation Program encompasses larger rehabilitation projects typically involving rehabilitation of 2 to 3 miles of connecting sewer main and associated sewer laterals. The Sewer Repair Contract which has been in place since FY , on the other hand involves a larger number of distinct repairs or replacement of entire pipe segments. In the FY17-18 Budget, the five year CIP projections show a forecasted budget of $17.7 million for Sewer Rehabilitation Projects and $6.7 million for the Sewer Repair Contract. The District s CIP budget constitutes approximately 40% of the overall O&M budget. Page 13 of 32

34 The District uses a Risk Analysis Model to help develop projects for the Sewer Rehabilitation Program and create the District s 5 and 10 Year CIP. An updated Risk Model was recently completed and utilized to evaluate and prioritize the most vulnerable portions of the District collection system. The overall system condition in terms of risk appears to be very good as evidenced by the following risk profile expressed as system percentages: i. Very Low Risk 66.5% ii. Low Risk 27.0% iii. Medium Risk 6.0% iv. High Risk 0.5% The Sewer Repair Contract heavily relies on the findings from the District s CCTV inspection program. As serious defects are found in a pipe segment, pipe condition is evaluated along with its maintenance history to determine repair priorities. The highest priority pipe repairs are completed through a multiple year pipe repair service contract budgeted at $1.3 million annually. The key to evaluating the District s collection system is having accurate and current condition assessment of pipe and structures using closed circuit television (CCTV). Both the Risk Analysis and the Sewer Repair Contract utilize the findings from the CCTV inspection program. i. The District has committed itself to achieving an eight year CCTV frequency of its collection system. The District made this commitment in its August 2012 agreement with Northern California River Watch. To this end, the District has instituted some procedural and functional changes to the CCTV inspection program, resulting in increased production. Most recent effort included the purchase and utilization of a digital scanning CCTV van along with the use of the District s analog CCTV van. Based on recent production, this eight year frequency should be fully met before the August 2022 agreement deadline. ii. Prior to 2012, the actual CCTV frequency was well over 15 years and the CCTV goal was 200,000 lf / year. In FY the goal was established at 275,000 lf/year and nearly 300,000 lf/year was achieved. With the addition of the new CCTV equipment, in FY the goal has been increased to 315,000 lf/year. Although the execution of the Sewer Repair Contract has been fully successful, the District continues to experience heavy development plan and tenant improvement plan reviews, which has hampered the execution of the Sewer Rehabilitation Program. One measure being implemented to ensure timely completion of Sewer Rehabilitation Projects is to augment engineering staff with engineering consultants to assist during both the design and construction phases of the project. There are a number of CIP projects in various stages of progress that either have just been completed, are in the process of being completed, Page 14 of 32

35 or are in initial stages of progress. These are shown in the following section CIP Projects and Studies. e) Staff Training and Certification Staff is provided safety and equipment training through a combination of online and live training and is documented by My Safety Officer training services. A new method of training referred to as Competency Based Training (CBT) is being initiated at the District. This method of training is a more rigorous training method that requires the worker to demonstrate competency by verbally answering questions and demonstrating their knowledge of equipment and operational processes. The District encourages maintenance staff to obtain CWEA Collection System Maintenance Certifications above the level required of their position. To emphasize its importance, passing Ken Kerri O&M of Wastewater Collection Systems (Vol 1 and 2) coursework and Grade Certification requirements are necessary for promotion. All maintenance staff, except for newly hired Maintenance Worker Trainee positions, has certification in CWEA Collection System Maintenance. f) Maintenance and Contingency Equipment In addition to keeping an adequate number of newer model maintenance equipment available for use for routine maintenance, contingency equipment such as bypass pumps and generators are in standby and ready for use in emergencies. A Vehicle Replacement Reserve Plan is maintained to ensure that an adequate reserve funding is maintained for the scheduled replacement of the District fleet. Age, mileage, and condition parameters are all considered in deciding when replacement is appropriate. The District does not perform any construction work with its own staff. Emergency pipeline repairs are performed by a private contractor through the District s multi-year pipeline repair project. For catastrophic events where very significant damage occurs, an on-call contract with a large construction contractor has been initiated for immediate response. Element V - Design & Construction Standards a) Design Standards The District s Design Standards, dated 12/11/07 are established and adequate for the design of sewer systems, although some details require updating to reflect currently accepted construction practices. In addition to the review of design details, it may also be prudent to perform a review of the District Design Standards in the near future to Page 15 of 32

36 investigate areas for improvement and ensure conformance to current engineering standards and practices. Contracts with multiple engineering consultants provide expertise in specific discipline areas while ensuring there is adequate resources available to the District for engineering services. b) Construction Standards The District s Construction Standards typically refer to Standards of Specifications for Public Works Construction, or Greenbook. Following the completion of a construction project a formalized evaluation process for reviewing design and construction related issues that should be addressed in future CIP projects. c) Inspection and Testing The District maintains its own expert inspection staff for pipeline repairs, pipeline rehabilitation, and new pipe installations. Engineering services during construction are sometimes provided by consultants to supplement District staff in their inspection and construction management responsibilities. Testing laboratories are typically specified for rehabilitation projects to ensure conformance to specification standards. Element VI - Overflow Emergency Response Plan a) Notification New SSO notification requirements and new SSO categories designated by the SWRCB have been incorporated into the District s new Overflow Emergency Response Plan (OERP). Contact information for OES and regulatory agencies are shown in the OERP for proper notification of SSOs and their notification criteria, however this should be repeated in the text preceding the OERP document. An Emergency Spill Response Plan for SSOs >50,000 gallons has been included. In addition, Emergency Pump Station Response Plans have also been included. Although an incident command structure is shown in Element II, it is not clear what the normal SSO response structure is and the roles played by each staff member. This is an area that requires improvement in the updated SSMP and should be indicated in this Element. Contact information requires updating due to recent changes in staffing. There is also a need to clearly identify the District s Legally Responsible Officials (LROs) and Data Submitters (DSs) in addition to showing the typical chain of command for responding to and reporting SSOs. b) Response Page 16 of 32

37 Maintenance staff has met the goal of responding within 30 minutes from receipt of a service call during working hours, and 60 minutes from receipt of a service call during after work hours. The average response time for 2017 is approximately 27 minutes and 35 minutes for during and after work hours, respectively. Response procedures and activities are clearly identified in the OERP for SSOs and sewer backup events. All forms needed to respond to SSOs and sewer backups are also provided. Maintenance staff receives training on the OERP and SSO volume estimation techniques. One area that requires improvement is the SSO training of contractors working on District CIP projects and contractors working on private property that require sewer permits (involve connection to the District collection system). A formalized program to provide contractor SSO training and response is needed to ensure they are aware of and follow the OERP. c) Reporting The OERP has been updated to include new SSO Categories and updated reporting requirements, which is reflected in the current SSMP. CIWQS Reporting procedures are clearly identified. Although the District has maintained proper SSO documentation, there is a need to establish a formalized Standing Operating Procedure (SOP) to ensure that process of documenting SSOs and maintaining complete SSO file packages is consistently followed. In addition to properly identifying LROs and DSs, it may be prudent to have more than one DS on staff to assist with SSO notifications and CIWQS reporting. Element VII - Fats, Oils, and Grease Control Program a) Identification and Maintenance There are currently over 450 active Food Service Establishments (FSE) within the District Service Area. The City of San José Environmental Services Department (ESD) performed the District s inspection and compliance responsibilities for the Fats, Oils, and Grease (FOG) Program since late The District s FOG Program is no longer being supported by the City of San José as of July 1, The District absorbed the FOG Program responsibilities within existing staffing levels and has been developing the FOG inspection and compliance documents needed to administer the FOG Program. In addition, specialized equipment is needed to properly perform FOG inspection duties. FOG inspections will resume in May 2018 and these documents will be ready before the SSMP update in August. Page 17 of 32

38 In 2016 and 2017 combined there were only 2 grease related SSOs out of 19 SSOs, or about 10%. Further investigation and analysis of SSO causes (FOG, roots, etc.) may show some correlation between the FOG Program and reduced FOG related SSOs. b) Source Control Compliance with the FOG Program by FSEs has been excellent due to the City of San Jose Source Control Program/inspections. The District intends on carrying this success forward with its own FOG Program. All FSE related developments or tenant improvements are receiving review by ESD for grease trap or interceptor requirements. c) Facility Inspection San Jose ESD performed an average of about 200 FSE inspections annually with a compliance rate of about 60%. Facilities that are noncompliant cover a large variation in violation severity, a large majority of these considered to be minor. There were a few Compliance meetings held between San Jose ESD, the facility owner, and the District. All violations appear to have been resolved following these meetings. As the District begins its own FOG inspection responsibilities, more recent data will become available. As previously described in Element III, the District added Ordinance Chapter14 Administrative Enforcement in order to provide additional mechanisms to assist the District in enforcing its Ordinances, the FOG Ordinance being one of them. d) Residential FOG Outreach The District has the capability to utilize GIS mapping to indicate where FOG is occurring in the collection system. Although it is not always evident where the actual FOG source is, it does provide additional information to help guide our maintenance activities. This information can also assist with focused FOG outreach (informational letters and brochures, grease scrapers, magnets, etc.) to FSE s and high density residential developments. Element VIII - Capacity Management a) Capacity Assessment and Evaluation Additional flow monitoring and an expansion of the Hydraulic Model was performed and a final Technical Memorandum should be complete by June The new model covers approximately 25% of the entire collections system, while the previous Study, performed in 2009, covered approximately 13%. Page 18 of 32

39 Initial results appear to suggest that there are approximately 32 hydraulically deficiencies of various deficiency levels within our collection system amounting to approximately 3% of our total system. These deficiency levels range from Minimal, Moderate to Significant and are based on the surcharge parameters selected. The preliminary results of this hydraulic study have been imported into the District s Risk Model for analysis. There were two main line SSOs in 2017 that were associated with a hydraulic capacity deficiency. Both of these areas will be evaluated in the next phases of the I/I Reduction Program. b) Capacity Assurance Plan The Risk Prioritization Study and Model is used to help develop the 5- year and 10-year CIP. By using a Risk Matrix and calculating risk based on certain Consequence of Failure (CoF) and Likelihood of Failure (LoF) Parameters, a Risk Score is assigned to each line segment. Hydraulic capacity is a major parameter component that has significant impact on the Risk score. Review and continuous improvement of the Hydraulic Model and Risk Prioritization Model is performed to obtain the most accurate results. To ensure that the collection system flawlessly continues to serve the communities in the District, a significant amount of resources is invested in CIP projects and studies as described in the Sewer System Improvements and Studies section described below. Element IX Monitoring, Measurement, and Program Modifications a) Continuous Improvement of SSMP The monitoring and validation of SSMP elements is performed regularly to assure that they are appropriate and meaningful. During the course of the fiscal year and especially at the fiscal year ending, data is tabulated and reviewed to measure the success of specific Elements. At each SSMP Audit and as an ongoing practice, modifications needed are either made or are noted for work as a future on-going effort. Staff continues to search for opportunities to improve the measurement criteria within each of the SSMP Elements. These have been added to the SSMP with each new version. The use of a SSMP Audit Checklist located at the end of this SSMP Audit is used in conjunction with this Element. Element X SSMP Program Audits a) Biennial Audit The biennial audits have been performed on a timely basis and presented to the District Board for their review and approval. Page 19 of 32

40 In addition to including the most recent SSMP Audit in the SSMP, a copy of the SSMP Audit is provided on the District website and transmitted to Northern California River Watch. Throughout the SSMP Audit, successes and challenges for each section are made. Recommended changes are indicated at the end of the SSMP Audit in the Narrative for Recommended Updates and Revisions. With each successive SSMP Audit, the District s SSMP has incrementally improved and is reflected in the District s increased performance. Certification of the SSMP Audit as well as the SSMP is required by the SSSWDR. Certification statements are to be included in this and future SSMP documents. Element XI Communication Program a) Stakeholder and Public Outreach The District provides notice of its SSMP Audit and SSMP through the distribution of the District Board Agenda to the public. It is made aware that the District Board will be considering for acceptance and or adoption each of these documents. The District publishes the SSMP Audit and SSMP on the District website for the public at large to review these documents. Inserts in special public mailings could also be utilized to distribute information about the SSMP Audit and the SSMP. The notification of stakeholders, other than the District Board members themselves, could be improved by providing messages alerting them to the SSMP Audits and District SSMP through the use of website links. Requests for comments and contact information could be included in these messages. Page 20 of 32

41 CIP PROJECTS AND STUDIES The following summarizes the District s current and upcoming Capital Improvement Program (CIP) projects and studies. It illustrates the District s ongoing commitment to maintain and improve its collection system and its ability to complete projects identified in the District s 5-year CIP. In FY there was approximately $2.8 million of CIP projects and studies completed. There is $5.7 million shown in the current FY budget and an estimated $25 million to be shown in the new 5 Year CIP budget spanning FY to FY The most notable projects and studies recently completed or currently on-going include: 1. Multi-Year Sewer Repair Contract A multi-year (up to 5 years) service contract that expedites point (spot) repairs of sewer main and laterals on an as-needed emergency or scheduled basis. The original multi-year contract in FY had a budget of $250,000, but due to its success succeeding budgets were steadily increased. This is the third multi-year contract awarded and it is currently budgeted at $1.3 million/yr. Over 325 repairs have been performed since inception of the multi-year contract. The current contract expires in June Los Gatos Creek (Vasona Park) Project This project involves the lining of approximately 6,100 lineal feet of 15 to 27-inch diameter asbestos cement and reinforced concrete pipe that were found to have moderate to severe corrosion and was rated in the Risk Model as being Medium to High Risk. The project s construction contract began work in the fall of 2016 and expected to be completed in June Expenditure for this project is approximately $2.0 million. 3. University Avenue ACP (Blossom Hill Rd to Highway 85) This project involves the lining of approximately 9,100 lineal feet of 15 to 18-inch diameter asbestos cement and vitrified clay pipe that were found to have moderate to severe corrosion and was rated in the Risk Model as being Medium to High Risk. The project will be awarded in June 2018 with an expected construction start date in August This project is budgeted for $2.2 million. 4. Winchester Blvd Trunk Sewer Rehabilitation - This project is currently in the design stage and involves the rehabilitation of over 7,000 lineal feet of 21 to 30-inch diameter asbestos cement and reinforced concrete pipe that were found to have moderate to severe corrosion and was rated in the Risk Model as being Medium to High Risk. The project design is expected to be complete in the spring of The estimated budget for this project is $2.2 million. 5. Quito Basin 3 & 4 (Wildcat Creek) This project is currently in the design stage and involves the rehabilitation of approximately 9,000 lineal feet of 6 to 10-inch diameter, primarily vitrified clay pipe. Although there is some level of defects and corrosion, there is a need to increase its hydraulic capacity and increase pipe size range to 8 to 15-inch diameter. This was rated in the Risk Model as being Medium Page 21 of 32

42 to High Risk. The project design is expected to be complete in the fall of The estimated budget for this project is $3.0 million. 6. Hydraulic Model Update and Expansion The new Hydraulic Model is complete and provides enhancements to the previous Hydraulic Model by expanding the modelled system from 13% to 25% of the total system coverage. This provides increased accuracy in the assessment of the District s sewer collection system and is a significant component of the District s Risk Model. 7. Risk Prioritization Model Updates The work to update the existing Risk Model is complete and incorporates refinements to the original Risk Scoring Model. It also has been converted for use in the District s CMMS system allowing staff to maintain real time risk modelling capabilities. This model indicates that of the entire collection system: 66.5% is considered Very Low Risk, 27% Low Risk, 6% Medium Risk, and 0.5% High Risk. 8. Large Trunk Sewer Evaluation This evaluation of the District s large trunk sewers (greater than 15-inch diameter) is complete. Results of this evaluation provided important pipe and manhole condition ratings for the Risk Model and helped identify and prioritize CIP projects. 9. Infiltration and Inflow Reduction Program The District initiated its Inflow and Infiltration Reduction Program in This Program has identified and isolated specific areas of high I&I within the collection system. Although further work is required to isolate additional manageable areas of high I&I, smoke testing is scheduled to take place in May 2018 in one identified area. This program is expected to continue identifying I&I trouble spots for future smoke testing. 10. Santa Rosa Easement Sewer This study involves the evaluation of easement sewer lines in an area identified as having unstable soils, also known as the hillside zone. In addition to being inaccessible to maintenance staff, these easement sewer lines have shown signs of deformation. The study is evaluating viable options to prevent future damage to the collection system. The results of this study will lead into a CIP project within the next two years. 11. Update 5-Year and 10-Year CIP The update of the 5-Year and 10-Year CIP was postponed until completion of the new Hydraulic Model and updated Risk Prioritization Study, which are both critical elements in the evaluation and prioritization of CIP projects. The 5-Year and 10-Year CIP update is one of the District s FY17-18 Strategic Plan Action Items and is expected to be completed in June District Strategic Plan - The initial five year District Strategic Plan created in 2013 required renewal in 2018 and was included as a District FY17-18 Strategic Plan Action Item. The new Strategic Plan will be effective from FY to Page 22 of 32

43 FY It re-established the District s Mission, Vision, Values, and Goals form the original Strategic Plan and created new Objectives and Action Items. It was accepted by the District Board in April Page 23 of 32

44 SSMP AUDIT CHECKLIST Each of the eleven SSMP Elements and their associated requirement(s) are represented in the checklist below. Either a YES or NO is provided for each question. If a YES is indicated, then the requirement is considered to be both compliant and current. If a NO is indicated, then an update/change is needed and a comment is made under remarks section. Further explanation is provided and a timeline to complete those changes will be described in the Narrative for Recommended Updates and Revisions section following this checklist. ELEMENT I MISSION, GOALS AND OBJECTIVES A. B. Are the District s Mission, Vision, Values, Goals, and Objectives stated in the SSMP still appropriate and accurate? Does the stated Goal in the Strategic Plan concerning Sewer System Management provide a comprehensive goal for the effective and efficient management and operation of the District s collection system? ELEMENT II -- ORGANIZATION A. Is the District s Organizational Chart current? B. Is the chain of communication for SSO response and reporting current? C. Is the contact information for key District personnel current? YES NO REMARKS The new five year Strategic Plan (FY to FY ) has recently been accepted by the Board. Although the Mission, Vision, Values, and Goals have remained essentially the same, new Objectives have been developed. The new Strategic Plan will be incorporated into the 2018 District SSMP before recertification by August Goal B - Sewer System Management This goal directly addresses the intent of the SSMP through its description: Promote continuous improvement of our services through the optimization of the maintenance and capital improvement programs The Board of Director s List (Appendix A.1) and Organization Chart (Appendix A.4) requires updating before recertification by August Due to recent retirements and changes in personnel, the chain of communication requires updating before recertification by August Due to recent retirements and changes in personnel, the contact information for key personnel requires updating before recertification by August Page 24 of 32

45 ELEMENT III LEGAL AUTHORITY Does the SSMP contain excerpts from the current West Valley Sanitation District s Ordinance Code documenting the District s legal authority to: A. Prevent illicit discharges? B. C. Require proper design and construction of sewers and connections? Ensure access for maintenance, inspection, or repairs for portions of the lateral owned or maintained by the District? D. Limit discharges of fats, oil and grease? E. Enforce any violation of its sewer ordinances? ELEMENT IV OPERATIONS AND MAINTENANCE Mapping A. Does the SSMP reference the current process and procedures for maintaining the District s wastewater collection system maps? Updates and additions to the District Ordinances have been made and need to be included before recertification by August Responsibilities for FOG inspection and compliance have been transferred from the Regional Wastewater Facility to the District. This is further addressed in Element VII An additional Ordinance Chapter has been added to provide for an Administrative fine process. This will be included before recertification by August Transition to a GIS based mapping for field application (InfraMap) has been fully implemented. B. C. Are the District s wastewater collection system maps complete, current, and sufficiently detailed? Resources and Budget Does the District allocate sufficient funds for the effective operation, maintenance and repair of the wastewater collection system and is the current budget structure documented in the SSMP? The sewer system mapping is complete, current, detailed, and accurate, however, sewer lateral locations continue to be verified by GPS through the Lateral Locating and Maintenance Program. Funding for the District s Operation and Maintenance activities along with CIP funding is addressed and is sufficient. The newest budget FY18-19 should be available for inclusion before recertification by August Page 25 of 32

46 D. E. F. G H I J K Preventive Maintenance Does the SSMP describe current preventive maintenance activities and the system for prioritizing the cleaning of sewer lines? Based upon information in the Annual SSO Report, are the District s preventive maintenance activities sufficient and effective in minimizing SSOs and blockages? Rehabilitation and Replacement Is there an ongoing condition assessment program sufficient to develop a capital improvement plan addressing the proper management and protection of infrastructure assets? Are the current components of this program documented in the SSMP? Is there an established cleaning methodology used to address regular and high maintenance lines for both main and laterals? Is there a five year CIP showing a list of projects anticipated in the future? Is there a CIP for years beyond five years? Are these current? Is there a program to establish priorities for projects in the five year CIP and beyond? Is there a method for addressing emergency or high priority repairs for individual pipe(s) that are not a part of the CIP? Is there an established training on SSO protocol that is provided to contractors working on the District s collection system? The preventive maintenance activities described is generally current, but changes have been implemented to increase pipe inspection (CCTV) Lateral Maintenance cleaning. It appears that the District s SSO indices compares quite favorably with other collection systems in the state and region. Additionally the District s SSO trending also indicates that the correct preventive maintenance is being employed. The District is continuing its effort to achieve an eight year CCTV frequency of its sewer collection system by the year 2022 as identified in the NCRW Agreement. There is an established cleaning methodology being employed. The District is currently updating its 5 and 10 year CIP as part of the FY Strategic Plan Action Item. The updates will be incorporated for inclusion before recertification by August The updated Risk Model has been recently completed and utilizes the most up to date risk parameters. The District has been employing the use of a multi-year sewer repair projects that allow for the rapid repair of emergency and high priority repairs. Although SSO response information is passed along during pre-construction meeting, it is not comprehensive. Additionally, contractors that are not working on a District project but performing work on our system, also require some formalized training before issuing a sewer permit. This program will need to be developed and may not be complete until December Page 26 of 32

47 L M N. O Maintenance Equipment Does the SSMP list the major equipment currently used in the operation and maintenance of the collection system and document the procedures of inventory management? Are contingency equipment and replacement parts sufficient to respond to emergencies and properly conduct regular maintenance Training and Certification Is adequate training being provided to staff to maintain a knowledgeable and safe workforce? Are maintenance personnel properly certified by CWEA to perform their work and is this documented in the SSMP? ELEMENT V DESIGN AND CONSTRUCTION STANDARDS Does the SSMP contain current design and construction standards for the installation of new sanitary sewer systems, pump stations A. and other appurtenances and for the rehabilitation and repair of existing sanitary sewer systems? Does the SSMP document current procedures and standards for inspecting and testing the installation of new sewers, pumps, and B. other appurtenances and the rehabilitation and repair of existing sewer lines? ELEMENT VI OVERFLOW EMERGENCY RESPONSE PLAN A. Is the District s SSO and Backup Response Plan, that establishes procedures for emergency response, notification, and reporting, effective and current? Major equipment and parts inventory is maintained in the District s CMMS. Construction related responses are handled through the District s Multi-Year Sewer Repair Contract, or for larger emergencies an Open Purchase Order is maintained with a major engineering contractor. A significant amount of training is provided to every maintenance staff. A new training method referred to as Competency Based Training (CBT) is gradually being initiated. A discussion of this will be included in the SSMP. All maintenance staff are encouraged to obtain certification greater than that required of their position. All maintenance staff have CWEA certification and is documented. The District has established Design Standards. The procedures for acceptance of sewer systems are described. The new OERP (September 2015) incorporates the Water Quality Monitoring Plan (Appendix C.2) and the Pump Station Emergency Response Plans (Appendix C.1) are effective and current. Page 27 of 32

48 B. C. Has the District staff been properly trained on the procedures of the Sanitary Sewer Overflow and Backup Response Plan? Based on recent experience, does the Sanitary Sewer Overflow and Backup Response Plan provide effective guidance in handling SSOs and safeguarding public health and the environment? Training is provided on the District s OERP including specific training on SSO volume estimation techniques. ELEMENT VII FATS, OILS, AND GREASE (FOG) CONTROL PROGRAM A. B. C. D. E. Does the Fats, Oils, and Grease (FOG) Control Program include efforts to educate the public on the proper handling and disposal of FOG? Does the District s FOG Control Program identify sections of the collection system subject to FOG blockages, establish a cleaning schedule and address source control measures to minimize these blockages? Are requirements for grease removal devices, best management practices (BMP), record keeping and reporting established in the District s FOG Control Program? Does the District have sufficient legal authority to implement and enforce the FOG Control Program? Is the current FOG program effective in minimizing blockages of sewer lines resulting from discharges of FOG to the system? ELEMENT VIII CAPACITY MANAGEMENT A. Has the District evaluated the hydraulic deficiencies in the system, established sufficient design criteria and recommend both short and long term capacity enhancement and improvement projects? The District currently has some outreach effort, but would benefit from more active FOG outreach effort, especially in order to educate residents of multi-family residential units. Development of this program may require a fair amount of time to create and execute. The District has updated its hydraulic modeling study to reflect additional flow data and completion of several CIP projects that have addressed some of the capacity issues initially identified. Updated information can be provided for inclusion before recertification by August Page 28 of 32

49 B. Does the District s Capital Improvement Program (CIP) establish a schedule of approximate completion dates for both short and longterm improvements and is the schedule reviewed and updated to reflect current budgetary capabilities and activity accomplishment? The District is currently updating its 5 and 10 year CIP as part of the FY Strategic Plan. The updates will be incorporated for inclusion before recertification by August Adjustments to the District s CIP occurs annually based on progress of design and construction of CIP projects and appropriate funding is secured during the budgetary process. ELEMENT IX MONITORING, MEASUREMENT, AND PROGRAM MODIFICATIONS A. B. C. Are the performance parameters shown for each of the SSMP elements adequate for monitoring the effectiveness of each SSMP element? Are the methods for measuring each of the performance parameters sufficient to properly evaluate the success of each SSMP element? Does the description of the process for modifying the SSMP continue to be valid? D. Is there a record showing the revision history of the SSMP, including the items revised, the date the revision was made, and identifying the person that made the revision? A record of revision history is maintained. ELEMENT X SSMP AUDITS A. Was this SSMP Audit performed every two years beginning on May 2, 2014 and kept on file per SWRCB DWQ. B. Will this SSMP Audit be made public through the District s website? REMARKS All prior SSMP Audits have been performed in a timely manner and kept on file. The 2018 SSMP Audit will be incorporated into this SSMP before recertification by August Page 29 of 32

50 C. Has the SSMP Audit in its current form provide for its thorough review and continues to promote continuous improvement? ELEMENT XI COMMUNICATION PROGRAM Is the contact person listed for communication of the SSMP A. current? B. Does the District s website contain the most current SSMP? C. Do the District s stakeholders have the most current SSMP? They all have access to the SSMP via the District s website. D. Does the SSMP document current outreach efforts? Page 30 of 32

51 NARRATIVE FOR RECOMMENDED UPDATES AND REVISIONS For each NO answer shown in the SSMP Audit Checklist or specific items noted in the body of this SSMP Audit, a description of the proposed revision and timeline for completion is provided in this narrative (shown in boldface). Narratives may also be provided for those items that may currently be compliant, but deserve some discussion. Reference the SSMP Audit Checklist above and the District s SSMP regarding the specific element in question. Element I Mission, Goals, and Objectives A. The District s new five year (2018) Strategic Plan was adopted in April 2018, followed by the FY Strategic Plan Action Items to be presented to the Board in June The new Strategic Plan and FY Strategic Plan Action Items will be incorporated into the 2018 SSMP by August Element II Organization A. The Board of Director s List and District s Organizational Chart (Appendix A) requires updating. These updates will be incorporated into the 2018 SSMP by August 2018 and the goal is to make subsequent updates to the Board of Directors and changes to staffing by February of each year thereafter. Element II Legal Authority A. Changes and additions to the District Ordinance have been made since the last SSMP Audit. These changes and additions are to be included in the 2018 SSMP by August Element IV Operations and Maintenance A. The CWEA Certification List (Appendix B.10) requires updating due to recent advancements made by staff in Collection System Maintenance Certifications. This update will be made to the 2018 SSMP by August B. The funding for O&M changes each fiscal year with the new budget. The FY Budget can be included in the 2018 SSMP by August C. The District s 5 year and 10 year CIP is being updated as part of the FY Strategic Plan. This will be incorporated into the 2018 SSMP by August D. A formalized SSO Training/Orientation Program on the District s OERP and SSO response is needed for contractors performing District CIP Projects and for contractor s performing work for private parties connecting to the District sewer. Some time is needed to develop and implement this program and it is anticipated that by end of 2018 this can be in place. Page 31 of 32

52 E. The development of Competency Based Training (CBT) is being performed and will be gradually introduced to maintenance staff. This change in training methodology will be discussed in the 2018 SSMP by August Element VI Overflow Emergency Response Plan A. The establishment of a formalized Standing Operating Procedure (SOP) will ensure that the process of documenting SSOs and maintaining complete SSO file packages is consistently followed. Develop and implement a new SOP for SSO documentation by the end of FY , but include a discussion of this in the 2018 SSMP by August Element VII Fats, Oils, and Grease Control Program A. Complete the District s Standard Operating Procedure for FOG Compliance as part of the District s FY Strategic Plan. Incorporate this SOP into the 2018 SSMP by August Element VIII Capacity Management A. The completion of the expanded Hydraulic Model is critical to the determination of hydraulically deficient lines in the District collection system. The results from this model should be completed and available for incorporation into the 2018 SSMP by August B. The refinement of the Risk Prioritization Model has been made and the final Technical Memorandum is being completed. The new Risk Prioritization Model and significant results can be included in the 2018 SSMP by August Element X SSMP Audits A. The 2018 SSMP Audit will be incorporated into the District SSMP after it is presented to the District Board on May 9, It will then be incorporated into the 2018 SSMP by August Page 32 of 32

53

54 Second Hearing and Adoption of Ordinance No. 148 Page 2 May 3, 2018 At the April 11, 2018 meeting, the board held the first of two readings of Ordinance No. 148 amending Chapters 1, 4, and 10 of the District s Ordinance Code relating to the sewer rate increases. The matter was continued to the meeting of May 9th for the second hearing and adoption. The District mailed notices in accordance with Proposition 218 (Section 6 of Article XIII D of the California Constitution). In total, 35,931 notices were mailed in March As of the date of this memorandum, there have been 22 written protests received at the District office and approximately 14 inquiries concerning the proposed rate increases. Proposition 218 prevents the District from adopting the proposed rate increases if there is a majority protest. A majority protest would exist on the proposed sewer service and use charges if written protests are received from 17,678 property owners; and on the Hillside Zone Additional Rate if written protests are received from 789 property owners. At the hearing, the Secretary of the Board will tabulate the written protests received and report the results to the Board. Staff will be prepared to make a brief presentation concerning the necessity of rate increases prior to the public meeting. Attachments: Ordinance 148 April 11, 2018 Board Meeting Report on Ordinance Revisions

55 ORDINANCE NO. 148 AN ORDINANCE OF THE WEST VALLEY SANITATION DISTRICT BOARD OF DIRECTORS AMENDING CHAPTERS 1, 4 AND 10 OF THE DISTRICT S ORDINANCE CODE TO THE RELATING TO SEWER SERVICE AND USE CHARGES AND HILLSIDE ZONE ADDITIONAL SEWER RATE The Board of Directors of the West Valley Sanitation District of Santa Clara County do hereby find and declare: WHEREAS, the West Valley Sanitation District of Santa Clara County (District) levies sewer service and use charges and hillside zone additional sewer charges for properties within the District s jurisdiction and connected to the District s sewer system, pursuant to the authority granted by state law; and WHEREAS, the District, having retained the independent rate consulting firm Bartle Wells Associates to complete a financial study, which demonstrates the cost of service over the next five fiscal years, to include costs of operating and maintaining the sewer service system and constructing necessary improvements to meet local, state, and federal regulatory requirements; and WHEREAS, based upon that rate study, the findings of which were presented to the District Board of Directors at a meeting on January 10, 2018, the District has determined that sewer service and use charges and hillside zone additional sewer charges should be increased in each of the next five years to cover the costs of operating, maintaining, and improving its sewer system and constructing necessary capital improvements, as well as the District s share of operation and maintenance costs of the San Jose/Santa Clara Regional Wastewater Facility; and WHEREAS, the amount of the charges imposed do not exceed the cost of providing service, and revenues from the charges are not being used for any other purpose than that for which they are imposed; and WHEREAS, the District has notified all impacted property owners and tenants in accordance with Article XIIID of the California Constitution (also known as Proposition 218), held a public hearing on May 9, 2018, and has accepted and tallied all valid protests to the sewer service charges; and WHEREAS, the District has determined that no majority protest exists. NOW, THEREFORE, IT IS HEREBY ORDAINED by the District Board of Directors of the West Valley Sanitation District of Santa Clara County as follows: 1. Amendment: Chapter 1, Section 1.050(A) of the District s Ordinance Code is hereby amended to read as follows: 1

56 1.050 Definitions. The following words and phrases whenever used in the Ordinances of West Valley Sanitation District of Santa Clara County, California, shall be construed as defined in the section unless from the context a different meaning is intended or unless a different meaning is specifically defined or more particularly directed to the use of such words or phrases: (A) Definitions beginning with A : Accidental Discharge means any discharge at a flow or concentration which could cause a violation of the discharge standards in this Ordinance Code or any discharge of a non-routine, episodic nature, including, but not limited to, an accidental spill or slug. Accessory Dwelling Unit means any attached or detached residential dwelling units that are in addition to a principal single family residence on the same lot and that provide complete independent living facilities for one or more persons. ADUs include permanent provisions for living, sleeping, eating, cooking, and sanitation. Acreage means the gross area of a parcel of land after the area existing Streets have been deducted. Amalgam Separator means a device that employs filtration, settlement, centrifugation, or ion exchange to remove Dental Amalgam and its metal constituents from a dental office vacuum system before it discharges to the sanitary sewer; has been certified under the International Organization for Standardization s standard for Amalgam Separators as capable of removing a minimum of ninety-five (95) percent of Dental Amalgam at flow rates comparable to the flow rate of the actual vacuum suction system in operation; and does not have any automatic flow bypass. Amalgam Waste means and includes non-contact Dental Amalgam (Dental Amalgam scrap that has not been in contact with the patient); contact Dental Amalgam (including but not limited to, extracted teeth containing amalgam); Dental Amalgam sludge captured by chair-side traps, vacuum pump filters, screens, and other Dental Amalgam trapping devices; and used, leaking or unusable capsules containing Dental Amalgam. Ammonia means that form of nitrogen which is chemically definable as compound NH 3. Audit Protocols means the procedures to be followed in performing flow and pollutant studies. Average Concentration means the concentration of a pollutant in an Industrial User s discharge that is calculated by adding the concentrations of the particular pollutant in all 2

57 composite samples taken during a given time period, including but not limited to self-monitoring samples, and dividing the total by the number of samples taken. 2. Amendment: Chapter 4, Section of the District s Ordinance Code is hereby amended to read as follows: Hillside Zone Reserve Account. (a) Money to be deposited in the Hillside Zone Reserve Account of the district shall consist of the following: (1) Revenue derived from the Hillside Zone Additional Sewer Rate collected pursuant to Section (H); (2) Other money which the board directs to be deposited. (b) This fund may be used only for the repair and replacement of sewer facilities within the Hillside Zone. 3. Amendment: Chapter 10, Sections , , , , , and of the District s Ordinance Code is hereby amended to read as follows: Sewer Service and Use Charge Schedule. There is hereby levied and assessed upon each premises within the District having any connection with the sewerage system of the District, or which is discharging sewage which ultimately passes through the sewerage system of said District, a sewer service and use charge which shall be used only for the acquisition, construction, reconstruction, maintenance and operation of the sanitary sewer system of the District, to repay principal and interest on any bonds issued for the construction or reconstruction of sanitary sewerage facilities and to repay federal or state loans or advances made to the District for the construction or reconstruction of sanitary sewerage facilities. However, the revenue shall not be used for the acquisition or construction of new local street sewers or laterals as distinguished from main trunk, interceptor and outfall sewers. The amount of said charge for each premises shall be determined as hereinafter provided, and shall be payable and collected as hereinafter provided. (A) Charge for Single-Family Residential and Residential Condominium Premises. For each single-family premises and each residential condominium premises, the sewer service and use charge shall be as follows: 3

58 Monthly Charge Effective Dates $ July 1, 2018 $ July 1, 2019 $ July 1, 2020 $ July 1, 2021 $ July 1, 2022 (B) Charge for Two-Family and Multi-Family Premises. For each separate dwelling unit in two-family premises, and each separate dwelling unit in multi-family premises, the sewer service and use charge shall be as follows: Monthly Charge Effective Dates $ July 1, 2018 $ July 1, 2019 $ July 1, 2020 $ July 1, 2021 $ July 1, 2022 (C) Charge for Mobile Home Park Premises. For each separate mobile home within a mobile home park premises, the sewer service and use charge shall be as follows: Monthly Charge Effective Dates $ July 1, 2018 $ July 1, 2019 $ July 1, 2020 $ July 1, 2021 $ July 1, 2022 (D) Accessory Dwelling Unit. For each separate accessory dwelling unit, the sewer service and use charge shall be as follows: Monthly Charge Effective Dates $ July 1, 2018 $ July 1, 2019 $ July 1, 2020 $ July 1, 2021 $ July 1,

59 (E) Charge for Commercial, Industrial or Miscellaneous Premises, and Commercial, Industrial or Miscellaneous Condominium Premises. The sewer service and use charge for each commercial, industrial or miscellaneous premises shall be the following amounts, as described in Schedule A below, for each 100 cubic feet (HCF) of sanitary sewage and industrial waste discharged from said premises into the District s sanitary sewer system during the twelve months of January through December immediately preceding the fiscal year for which the charge is being calculated: Schedule A Commercial Classes FY2018/19 FY2019/20 FY2020/21 FY2021/22 FY2022/23 Restaurant $9.30 $10.00 $10.76 $11.58 $12.46 Hotel/Motel Gas Station Repair Domestic Laundry Retail/Office/Misc Institutional Hospitals $4.48 $4.82 $5.18 $5.57 $6.00 Schools Grouped Industries Winery $14.22 $15.08 $15.99 $16.95 $17.97 Printing Works Machinery Manufacturing Electrical Equipment Film Service Plating Works Industrial Laundry Car Wash (F) Charge for Commercial, Industrial or Miscellaneous Premises Omitted from Tax Roll for Reasons Other Than Application of an Alternate Charge. If the charge for any commercial, industrial or miscellaneous premises or commercial, industrial or miscellaneous condominium premises is not collected on the tax roll for any reason other than a decision to apply the alternate charge provided for in Section (G) to such premises, the charge for such premises shall be the same as listed in Section (E) for each 100 cubic feet of sanitary sewage discharged from commercial, industrial or miscellaneous premises and commercial, industrial or miscellaneous condominium premises into the sanitary sewer system during each calendar month for which the charge is being calculated. 5

60 (G) Alternate Charge for Commercial, Industrial or Miscellaneous Premises, and Commercial, Industrial or Miscellaneous Condominium Premises. Notwithstanding the foregoing provisions of Sections (E) and (F), if more than 50,000 gallons of sanitary sewage or industrial waste per operating day are discharged into the District s sanitary sewer system from a commercial, industrial, or miscellaneous premises or a commercial, industrial or miscellaneous condominium premises during three or more calendar months, or if the strength, the amount, or nature of the sewage or waste discharged daily into the sanitary sewer system is intermittent or irregular, and if, in either of the above situations, the District Manager and Engineer deems it s feasible from an economic and/or engineering standpoint, to measure the amount of biochemical oxygen demand, (BOD) suspended solids and ammonia discharged from said premises into the sanitary sewer system, an alternate monthly sewer service and use charge shall be imposed in lieu of those described in Section as described in Schedule B below: Schedule B Elements of Charge FY2018/19 FY2019/20 FY2020/21 FY2021/22 FY2022/23 Annual Charge for each 1 million gallons of sewage or waste discharged $4,324 $4,576 $4,844 $5,127 $5,427 Plus: Annual Charge for each 1000 lbs. of BOD discharged $543 $574 $606 $641 $677 Plus: Annual Charge for each 1000 lbs. of suspended solids discharged $485 $547 $618 $697 $787 Plus: Annual Charge for each 1000 lbs. of Ammonia discharged $2,929 $3,481 $4,136 $4,914 $5,839 The decision by the District Manager and Engineer as to whether to impose this alternate sewer service and use charge shall be made on or before July 1 of this fiscal year for which it is imposed. (H) Hillside Zone Additional Sewer Rate: A Hillside Zone Additional Sewer Rate shall be paid by all connected parcels within the Hillside Zone as defined by District Ordinance Code Section The Hillside Zone Additional Sewer Rate is necessary to recover the additional costs to serve parcels within the Hillside Zone. The costs in the Hillside Zone are higher than the 6

61 remainder of the District because sanitary sewers in the Hillside Zone are subject to failure due to land subsidence or erosion and therefore have a shorter life cycle than the pipelines outside of the zone. The amount of the Hillside Zone Additional Sewer Rate is based on recovering required capital cost for repair or replacement of systems within the Hillside Zone. For each parcel in the Hillside Zone that is served by the District s facilities, the Hillside Zone Additional Sewer Rate shall be as follows: Monthly Charge Effective Date $8.33 July 1, 2018 (1) The revenues raised by the Hillside Zone Additional Sewer Rate shall be allocated to a special Hillside Zone Reserve Account. The revenues in the Hillside Zone Reserve Account shall be used solely for the repair and replacement of sewer facilities within the Hillside Zone. (2) The Board of Directors shall, from time to time, review Hillside Zone Rate to determine whether the charge will be reasonably necessary to cover the costs of sewer lines repair within the Hillside Zone area. If the Board of Directors determines that the revenue derived from the Hillside Rate will exceed the amount of revenue required to repair of sewer lines, then the Board shall by Ordinance reduce or suspend the amount of Hillside Rate imposed on premises in the Hillside Zone Area. (I) Repeal by Ord 144, May 8, (J) Annual Review of Sewer Service and Use Charges; Reduction or Suspension of Increase. Prior to the effective date of any automatic increase in the sewer service and use charges described in Sections (A), (B), (C), (D), (E), (F), and (G), the Board of Directors shall review such increase to determine whether the resulting new charge will be reasonably necessary to cover the costs of providing sanitary sewer service to the premises to be charged. If the Board of Directors, based upon evidence presented at a public hearing, determines that the revenue derived from the increased sewer service and use charge will exceed the amount of revenue required to provide sanitary sewer service to any premises, then the Board shall by Ordinance reduce or suspend the amount of any such increase imposed on any such premises to an amount equal to the reasonable cost of providing said sanitary sewer service to said premises Methods of Measurement and Analysis of Sanitary Sewage and/or Industrial Wastes. The 7

62 District Manager and Engineer, on the basis of standard methods, standard engineering practices and applicable provisions of this Chapter 10, shall determine the adequacy and appropriateness of methods employed to measure the volume of sanitary sewage, industrial wastes, amount of biochemical oxygen demand, the amount of suspended solids, and the amount of ammonia discharged into the sanitary sewer system for the purpose of computing the sewer service and use charges pursuant to Section (G) hereof. The District Manager and Engineer on the basis of standard methods, standard engineering practices, applicable provisions of this Chapter 10, applicable State and Federal regulations and guidelines, records of past water consumption, biological oxygen demand concentration, suspended solids concentration and ammonia nitrogen concentration, shall determine the characteristic sewage strength and the sewage treatment plant capacity required to accommodate the flow and treat the biological oxygen demand, suspended solids, and ammonia nitrogen and the annual amount of sewage, biological oxygen demand, suspended solids and ammonia nitrogen concentration for purposes of computing the charge for sewage treatment plant capacity and charges for discharging sewage into the sanitary sewer system pursuant to the provisions of Section (G). Laboratory procedures used in the examination of sanitary sewage and/or industrial wastes to determine the pounds of biochemical oxygen demand, of suspended solids and of ammonia being discharged into the sanitary sewer system shall be those set forth in Standard Methods. However, in the discretion of the District Manager and Engineer or his authorized representatives and with the consent of the interested owner of the premises involved, alternative methods for certain analyses of sanitary sewage and/or industrial wastes may be used as long as they reflect the nature and quality of the sanitary sewage and/or industrial wastes being discharged into the sanitary sewer system Collection of Charges Based on Section (G); Billing. The District Manager and Engineer shall, within 15 days after the beginning of each calendar quarter (the first calendar quarter being in April of each year), prepare a detailed statement showing the quarterly charge. Said quarterly charge shall be based on the monthly average of the water consumption (with allowances for landscaping and other non-sewer terminating waters) of the 12 calendar months of January through December preceding the fiscal year for which the charge is being calculated. The procedure shall apply for each commercial, industrial or miscellaneous premises and for commercial, industrial or miscellaneous condominium premises for which the alternate charge 8

63 provided for in Section (G) has been applied on July 1 of the fiscal for which the charge is to be applied and the volume of discharge is not measured. Such statement shall contain the basis of the calculations, the location of the premises and other relevant information. The District Manager and Engineer shall mail said bill or invoice to the person or persons listed as the owners of the premises on the last equalized assessment roll of the County of Santa Clara at the address shown on such assessment roll or to the successor in interest of such owner if the name and address of such successor in interest is known to the District Manager and Engineer. Failure to mail any such bill or invoice, or failure of any owner to receive any such bill or invoice shall not excuse the owner of any premises from the obligation of paying any sewer service and use charge for any premises owned by him. The interested owner may, at any reasonable time, review the detailed statement prepared by the District Manager and Engineer. The sewer service and use charge for such premises shall be due and payable on the date the bill or invoice referred to in this section is mailed Collection of Charges Omitted From Tax Roll and for Governmental and Public Premises; Billing. The District Manager or his authorized representatives shall prepare a detailed statement containing the basis of the calculations, the location of the premises and other relevant information, showing the total charge for: (A) any premises which should be collected on the tax roll pursuant to Section , but was omitted from the tax roll or premises which is collected pursuant to Section (F). (B) any governmental or public premises, or any premises which are not subject to taxation on the tax roll. Under the authority of California Code of Civil Procedure Section 338(a), the District Manager may collect past due or missed payments for the current year and for up to the previous three years, if applicable. On the basis of the statement, the District Manager shall prepare a bill or invoice and shall mail said bill or invoice to the person or persons listed as the owners of the premises on the last equalized assessment roll of the County of Santa Clara at the address shown on such assessment roll or to the successor in interest of such owner if the name and address of such successor in interest is known to the District Manager. Failure to mail any such bill or invoice, or failure of any owner to receive any such bill or invoice shall not excuse the owner of any premises from the obligation of paying any sewer service and use charge for any premises owned by him. 9

64 The interested owner may, at any reasonable time, review the detailed statement prepared by the District Manager. The sewer service and use charge for such premises shall be due and payable on the date the bill or invoice referred to in this section is mailed Adjustments. It is the intent of the provisions of this Chapter, in establishing different sewer service charges for different classes of premises, to establish higher charges for those classes of premises which derive greater benefit from or impose greater burdens upon, the sanitary sewer system because of the quantity, quality or rate of flow of sanitary sewage and industrial wastes which may be or is discharged by such class of premises into said sewer system, giving full consideration to other fees or charges which may be paid by owners of said premises for the operation, maintenance, expansion, extension or development of said sewer system. If, with respect to any of said premises, the Board of Directors of the district should find that the charge applicable thereof is unfair or inequitable, then in that event said Board may by resolution, agreement or otherwise, establish a special sewer service and use charge for such premises, different from those above provided, and having a closer relationship to the benefit received, or burden placed, by such premises from or upon said sanitary sewer system, giving due consideration to other fees or charges paid by such premises for said sewer system. However, any such agreement and any such special sewer charge may at any time be revoked or changed by resolution of the said Board whenever it finds that continuance of the same would be unfair or inequitable in the circumstances Payment of Balance of Charge. If the charge for any premises to be collected on the tax roll, or for any premises collected under Section (G) or Section was less than what should be the charge therefore under the provisions of this Chapter, the balance of said charge shall be collected by a bill or invoice based on a detailed statement showing the bases of the calculations, the location of the premises and other relevant information, and prepared on or after October 1 st for the preceding 6 months from July to December during which a discrepancy between the amount collected and the correct charge is discovered, and on or after April 1 st for the preceding 6 months from January to June during which such a discrepancy is discovered. The District Manager and Engineer shall mail said bill or invoice to the person or persons listed as the owners of the premises on the last equalized assessment roll of the County of Santa Clara at the 10

65 address shown on such assessment roll or to the successor in interest of such owner if the name and address of such successor in interest is known to the District Manager and Engineer. Failure to mail any such bill or invoice, or failure of any owner to receive any such bill or invoice, shall not excuse the owner of any premises from the obligation of paying the balance of any sewer service and use charge for any premises owned by him. The interested owner may, at any reasonable time, review the detailed statement prepared by the District Manager and Engineer. The balance of the sewer service and use charge for such premises shall be due and payable on the date the bill or invoice referred to in this section is mailed. 4. Publication This ordinance shall take effect and be in force thirty days after its enactment, and before expiration of fifteen days after its enactment it shall be published once with the names of the members of the Board of Directors voting for and against the same in at least one newspaper of general circulation published and circulated in the District. INTRODUCED at a regular meeting of the Board of Directors of West Valley Sanitation District on the 10th day of April, ENACTED at a regular meeting of the Board of Directors on 9th day of May, 2018, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Directors Directors Directors Directors Attest: Chairperson of the Board Secretary 11

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67 Ordinance No. 148 Revision to District Ordinance Code Page 2 of 2 April 11, 2018 of actual expenditures deviating significantly from proposed, the Board approved a line of credit to fund the anticipated near-term capital project costs. This approach allows the District to increase or decrease the amount borrowed based on the actual performance of the City of San Jose and reduce the risk of over or under estimating bond revenue requirements and the possibility of negative arbitrage. Bartle Wells Associates rate study updated the cost of service for each customer class based on the estimated flows and loadings discharge of the District s customer base from the District s WVSD Adopted Revenue Program FY 2017/18. The increases were then phased in over five years to minimize impacts to customers. The rate analysis also addressed Senate Bill 1069 (SB 1069) which aims to reduce requirements for residential property owners interested in developing second units, referred to as accessory dwelling units or ADUs. An ADU rate equal to the Mobile home rate is added to the rate categories to address this new class. In addition, the rate study addresses the Hillside Zone Rate. Parcels located in the Hillside Zone are subject to an additional Hillside Zone Rate to recover costs due to land subsidence or erosion. The Hillside Zone rate would be updated to reflect current Hillside Zone capital needs based on recent capital projects. The Board also directed staff to include the revised rate in the public noticing and ordinance revision. Discussion: In early March 2018, District staff sent out 35,931 notices to property owners informing them of the proposed rate increases and public hearing on sewer rates and hillside zone additional sewer rate. The notices included information on when and where the public hearing will be held, and where they can find additional information such as, frequently asked questions, copies of the consultant cost of service study, how to protest the rates increases along with other information on services provided by the District. As of the date of this memorandum, District staff has received 13 written protests on Sewer Service and Use Charges and 3 written protests on Hillside Zone Additional Sewer Rate and 14 inquiries concerning the proposed rate increases. The public hearing on Proposed Sewer Rate increases and Hillside Zone Additional Sewer Rate increases is scheduled for May 9, 2018, 6:00 pm at the Campbell City Council Chambers. At the public hearing, a presentation on the proposed rates will be presented followed by an opportunity for the public to provide comments and tabulation of written protests. The outcome of the Proposition 218 rate approval and public hearing process would be an amendment to the ordinance revising rate tables to reflect the proposed rate increases. The ordinance revisions require two public readings with the first occurring at the Board meeting prior the public hearing on the proposed rate increases. The second reading occur subsequent to the Board s action on the proposed rate increases on May 9, Attachments: Ordinance 148 Redlined of changes on Chapters 1, 4, and 10

68 Redlined of Changes for Chapter 1 (Amendment/Mark-Up Section (A)) Definitions. The following words and phrases whenever used in the Ordinances of West Valley Sanitation District of Santa Clara County, California, shall be construed as defined in the section unless from the context a different meaning is intended or unless a different meaning is specifically defined or more particularly directed to the use of such words or phrases: (A) Definitions beginning with A : Accidental Discharge means any discharge at a flow or concentration which could cause a violation of the discharge standards in this Ordinance Code or any discharge of a non-routine, episodic nature, including, but not limited to, an accidental spill or slug. Accessory Dwelling Unit means any attached or detached residential dwelling units that are in addition to a principal single family residence on the same lot and that provide complete independent living facilities for one or more persons. ADUs include permanent provisions for living, sleeping, eating, cooking, and sanitation. Acreage means the gross area of a parcel of land after the area existing Streets have been deducted. Amalgam Separator means a device that employs filtration, settlement, centrifugation, or ion exchange to remove Dental Amalgam and its metal constituents from a dental office vacuum system before it discharges to the sanitary sewer; has been certified under the International Organization for Standardization s standard for Amalgam Separators as capable of removing a minimum of ninetyfive (95) percent of Dental Amalgam at flow rates comparable to the flow rate of the actual vacuum suction system in operation; and does not have any automatic flow bypass. Amalgam Waste means and includes non-contact Dental Amalgam (Dental Amalgam scrap that has not been in contact with the patient); contact Dental Amalgam (including but not limited to, extracted teeth containing amalgam); Dental Amalgam sludge captured by chair-side traps, vacuum pump filters, screens, and other Dental Amalgam trapping devices; and used, leaking or unusable capsules containing Dental Amalgam. Ammonia means that form of nitrogen which is chemically definable as compound NH 3. Audit Protocols means the procedures to be followed in performing flow and pollutant studies. Average Concentration means the concentration of a pollutant in an Industrial User s discharge that is calculated by adding the concentrations of the particular pollutant in all composite samples taken during a given time period, including byut not limited to self-monitoring samples, and dividing the total by the number of samples taken. (Adopted by Ord. 10, Aug. 28, 1957 and amended by Ord. 38, June 8, 1972; Readopted as modified by Ord. 46, July 23, 1975; Amended by Ord. 55, May 26, 1976; Added to Section No. 50, 51 and 52 and adopted by Ord. 72, April 8, 1981; Revised No. 40 and added No. 53, 54, 55 and 56 and adopted by Ord. 76, September 9, 1981; Revised No. 40 by Ordinance 96, Jan. 14, 1987; Amended by Ord. 117, May 12, 1993; Amended by Ord. 123, April 26, 1995; Amended by Ord. 126, November 18, 1998, Amended by Ord. 135, May 28, 2008; Amended by Ord. 137, October 28, 2009; Amended by Ord. 138, October 28, 2009; Amended by Ord. 139, October 28, 2009; Amended by Ord. 143, October 10, 2012, Amended by Ord. 145, November 12, 2014; Amended by Ord. 146, June 14, 2017; Amended by Ord. 148, May 9, 2018) Page 1

69 Redlined of Changes for Chapter 4 (Amendment/Mark-Up Section 4.050) Hillside Maintenance Zone Reserve Account. (a) Money to be deposited in the Hillside Maintenance Zone Reserve Account of the district shall consist of the following: (1) Revenue derivedfunds from the Hillside Reserve Account FeeZone Additional Sewer Rate collected from all connectors within the Hillside Zone as defined bypursuant to District Ordinance Code Section (H); (2) Other money which the board directs to be deposited. (b) This fund may be used only for the repairs and replacement to of sewer linesfacilities within the Hillside Zone necessitated by natural occurrences such as land movement or erosion. (Adopted by Ord. 46, July 23, 1975; Amended by Ord. 106, August 22, 1990; Amended by Ord. 148, May 9, 2018) Page 1

70 Redlined of Changes for Chapter 10 (Amendment/Mark-Up Sections , , , , , and ) Sewer Service and Use Charge Schedule. There is hereby levied and assessed upon each premises within the District having any connection with the sewerage system of the District, or which is discharging sewage which ultimately passes through the sewerage system of said District, a sewer service and use charge which shall be used only for the acquisition, construction, reconstruction, maintenance and operation of the sanitary sewer system of the District, to repay principal and interest on any bonds which may hereafter be issued for the construction or reconstruction of sanitary sewerage facilities and to repay federal or state loans or advances which may hereafter be made to the District for the construction or reconstruction of sanitary sewerage facilities. provided; hhowever, no suchthe revenue shall not be used for the acquisition or construction of new local street sewers or laterals as distinguished from main, trunk, interceptor and outfall, sewers. The amount of said charge for each premises shall be determined as hereinafter provided, and shall be payable and collected as hereinafter provided. (A) Charge for Single-Family Residential and Residential Condominium Premises. For each single-family premises and each residential condominium premises, the sewer service and use charge shall be as follows: Monthly Charge Effective Dates $ July 1, $ July 1, $ July 1, $ July 1, $ July 1, (B) Charge for Two-Family and Multi-Family Premises. For each separate dwelling unit in two-family premises, and each separate dwelling unit in multi-family premises, the sewer service and use charge shall be as follows: Monthly Charge Effective Dates $ July 1, $ July 1, $ July 1, $ July 1, $ July 1, (C) Charge for Mobile Home Park Premises. For each separate mobile home within a mobile home park premises, the sewer service and use charge shall be as follows: Monthly Charge Effective Dates $ July 1, $ July 1, $ July 1, $ July 1, $ July 1, (D) Accessory Dwelling Unit. For each separate accessory dwelling unit, the sewer service and use charge shall be as follows: Page 1

71 Monthly Charge Effective Dates $ July 1, 2018 $ July 1, 2019 $ July 1, 2020 $ July 1, 2021 $ July 1, 2022 (DE) Charge for Commercial, Industrial or Miscellaneous Premises, and Commercial, Industrial or Miscellaneous Condominium Premises. The sewer service and use charge for each commercial, industrial or miscellaneous premises shall be the following amounts, as described in Schedule A described below, for each 100 cubic feet (HCF) of sanitary sewage and industrial waste discharged from said premises into the District s sanitary sewer system during the twelve months of January through December immediately preceding the fiscal year for which the charge is being calculated: Schedule A Commercial Classes FY20138/149 FY201419/1520 FY201520/1621 FY201621/1722 FY201722/1823 Restaurant $ $ $ $ $ Hotel/Motel Gas Station Repair Domestic Laundry Retail/Office/Misc Institutional Hospitals $ $ $ $ $ Schools Grouped Industries Winery $ $ $ $ $ Printing Works Machinery Manufacturing Electrical Equipment Film Service Page 2

72 Plating Works Industrial Laundry Car Wash (EF) Charge for Commercial, Industrial or Miscellaneous Premises Omitted from Tax Roll for Reasons Other Than Application of an Alternate Charge. If the charge for any commercial, industrial or miscellaneous premises or commercial, industrial or miscellaneous condominium premises is not collected on the tax roll for any reason other than a decision to apply the alternate charge provided for in Section (FG) to such premises, the charge for such premises shall be the same as listed in Section (DE) for each 100 cubic feet of sanitary sewage discharged from commercial, industrial or miscellaneous premises and commercial, industrial or miscellaneous condominium premises into the sanitary sewer system during each calendar month for which the charge is being calculated. (FG) Alternate Charge for Commercial, Industrial or Miscellaneous Premises, and Commercial, Industrial or Miscellaneous Condominium Premises. Notwithstanding the foregoing provisions of Sections (DE) and (EF), if more than 50,000 gallons of sanitary sewage or industrial waste per operating day are discharged into the District s sanitary sewer system from a commercial, industrial, or miscellaneous premises or a commercial, industrial or miscellaneous condominium premises during three or more calendar months, or if the strength, the amount, or nature of the sewage or waste discharged daily into the sanitary sewer system is intermittent or irregular, and if, in either of the above situations, the District Manager and Engineer deems it s feasible from an economic and/or engineering standpoint, to measure the amount of biochemical oxygen demand, (BOD) suspended solids and ammonia discharged from said premises into the sanitary sewer system, an alternate monthly sewer service and use charge shall be imposed in lieu of those described in Sections (4) and (5) as described in Schedule B below: Schedule B Elements of Charge FY20138/149 FY20149/1520 FY201520/1621 FY201621/1722 FY201722/1823 Annual Charge Per Million Gallons/Day of Flow Capacity Required $580,043 $638,048 $701,852 $768,528 $837,696 Plus: Annual Charge per 1000 lbs. per day of BOD capacity required $99,098 $109,008 $119,908 $131,300 $143,117 Plus: Annual Charge for each 1000 lbs. per day of suspended solids capacity required $68,056 $74,861 $82,348 $90,171 $98,286 Plus: Schedule B con t Elements of Charge FY2013/14 FY2014/15 FY2015/16 FY2016/17 FY2017/18 Annual Charge for each 1000 lbs. per day Page 3

73 of Nitrogen capacity required $291,741 $320,915 $353,006 $386,542 $421,331 Plus: Annual Charge for each 1 million gallons of sewage or waste discharged $1,2404,324 $1,3644,576 $1,5004,844 $1,6435,127 $1,7905,427 Plus: Annual Charge for each 1000 lbs. of BOD discharged $85543 $93574 $ $ $ Plus: Annual Charge for each 1000 lbs. of suspended solids discharged $ $ $ $ $ Plus: Annual Charge for each 1000 lbs. of Ammonia discharged $9082,929 $9983,481 $1,0984,136 $1,2024,914 $1,3115,.839 The decision by the District Manager and Engineer as to whether to impose this alternate sewer service and use charge shall be made on or before July 1 of this fiscal year for which it is imposed. (GH) Hillside Zone Additional Sewer Reserve Account FeeRate: A Hillside Zone Zone Additional Sewer Reserve Account FeeRate shall be paid by all connectors connected parcels within the Hillside Zone as defined by District Ordinance Code Section , to pay for repairs necessitated by land movement or erosion. The Hillside Zone Additional Sewer Rate is necessary to recover the additional costs to serve parcels within the Hillside Zone. The costs in the Hillside Zone are higher than the remainder of the District because sanitary sewers in the Hillside Zone are subject to failure due to land subsidence or erosion and therefore have a shorter life cycle than the pipelines outside of the zone. The amount of the Hillside Zone Additional Sewer Rate is based on recovering required capital cost for repair or replacement of systems within the Hillside Zone. For each parcel in the Hillside Zone that is served by the District s facilities, the Hillside Zone Additional Sewer Rate shall be as follows: Monthly Charge Effective Date $8.33 July 1, 2018The Board of Directors shall, in a District resolution, set forth the specific amount of the fee, describe the benefit and impact area upon which the fee is imposed, list the specific repair work to be financed, describe the estimated cost of these repairs, describe the reasonable relationship between this fee and the Hillside Zone, and set forth the time of payment. On an annual basis the Board of Directors shall review this fee to determine whether the fee amount is reasonably related to the impacts unique to the Hillside Zone area and whether the reserve account fund is still needed. (1) Limited Use of Funds: The revenues raised by the Hillside Zone Additional Sewer Ratepayment of these rate fees shall be budgeted allocated to within a special Hillside Zone Reserve Account. The and such revenues in the Hillside Zone Reserve Account shall be used Page 4

74 solely for the repair and replacement of sewer linesfacilities within the Hillside Zone area resulting from land movement or erosion.. (2) FeeReview of Hillside Rate Adjustment: The Board of Directors shall, from time to time, review Hillside Zone Rate to determine whether the charge will be reasonably necessary to cover the costs of sewer lines repair within the Hillside Zone area. If the Board of Directors determines that the revenue derived from the Hillside Rate will exceed the amount of revenue required to repair of sewer lines, then the Board shall by Ordinance reduce or suspend the amount of Hillside Rate imposed on premises in the Hillside Zone Area. Any property owner within the Hillside Zone area may apply to the Board of Directors for a reduction or adjustment of the reserve account fee, or a waiver of that fee, based upon the absence of any reasonable relationship or nexus between the likelihood and severity of potential repairs to sewers which serve this property in the Hillside Zone area and the amount of fee to be charged. Such an application shall be made in writing and filed with the District Manager during the fiscal year in which the fee is imposed. The application shall state in detail the factual basis for the claim of waive, reduction or adjustment. The Board of Directors shall consider the application at a public hearing held within 60 days after the filing of the application. The decision of the Board of Directors shall be final. (HI) Repeal by Ord 144, May 8, (IJ) Annual Review of Sewer Service and Use Charges; Reduction or Suspension of Increase. Prior to the effective date of any automatic increase in the sewer service and use charges described in Sections (A), (B), (C), (D), (E), and (F), and (G), the Board of Directors shall review such increase to determine whether the resulting new charge will be reasonably necessary to cover the costs of providing sanitary sewer service to the premises to be charged. If the Board of Directors, based upon evidence presented at a public hearing, determines that the revenue derived from the increased sewer service and use charge will exceed the amount of revenue required to provide sanitary sewer service to any premises, then the Board shall by Ordinance reduce or suspend the amount of any such increase imposed on any such premises to an amount equal to the reasonable cost of providing said sanitary sewer service to said premises. (Adopted by Ord. 10, Aug. 28, 1957; Amended by Ord. 38, June 8, 1972; Readopted, as modified, by Ord. 46, July 23, 1975; Amended by Ord. 55, May 26, 1976; Amended by Ord. 58, May 12, 1977; Amended by Ord. 61, Jan. 25, 1978; Amended by Ord. 63, May 10, 1978; Amended by Ord. 68, May 14, 1980; Amended by Ord. 74, May 27, 1981; Amended by Ord. 77, May 27, 1982; Amended by Ord. 88, May 23, 1984; Amended by Ord. 89, May 22, 1985; Amended by Ord. 92, May 14, 1986; Amended by Ord. 99, May 25, 1988; Amended by Ord. 103, May 10, 1989; Amended by Ord. 105, May 23, 1990; Amended by Ord. 110, May 8, 1991; Amended by Ord. 113, April 22, 1992; Amended by Ord. 118, May 26, 1993; Amended by Ord. 122, May 11, 1994; Amended by Ord. 132, October 9, 2002; Amended by Ord. 141, June 9, 2010; Amended by Ord. 144, May 8, 2013; Amended by Ord. 146, June 14, 2017; Amended by Ord. 148, May 9, 2018) Methods of Measurement and Analysis of Sanitary Sewage and/or Industrial Wastes. The District Manager and Engineer, on the basis of standard methods, standard engineering practices and applicable provisions of this Chapter 10, shall determine the adequacy and appropriateness of methods employed to measure the volume of sanitary sewage, industrial wastes, amount of biochemical oxygen demand, the amount of suspended solids, and the amount of ammonia discharged into the sanitary sewer system for the purpose of computing the sewer service and use Page 5

75 charges pursuant to Section (FG) hereof. The District Manager and Engineer on the basis of standard methods, standard engineering practices, applicable provisions of this Chapter 10, applicable State and Federal regulations and guidelines, records of past water consumption, biological oxygen demand concentration, suspended solids concentration and ammonia nitrogen concentration, shall determine the characteristic sewage strength and the sewage treatment plant capacity required to accommodate the flow and treat the biological oxygen demand, suspended solids, and ammonia nitrogen and the annual amount of sewage, biological oxygen demand, suspended solids and ammonia nitrogen concentration for purposes of computing the charge for sewage treatment plant capacity and charges for discharging sewage into the sanitary sewer system pursuant to the provisions of Section (FG). Laboratory procedures used in the examination of sanitary sewage and/or industrial wastes to determine the pounds of biochemical oxygen demand, of suspended solids and of ammonia being discharged into the sanitary sewer system shall be those set forth in Standard Methods. However, in the discretion of the District Manager and Engineer or his authorized representatives and with the consent of the interested owner of the premises involved, alternative methods for certain analyses of sanitary sewage and/or industrial wastes may be used as long as they reflect the nature and quality of the sanitary sewage and/or industrial wastes being discharged into the sanitary sewer system. (Adopted by Ord. 55, May 26, 1976; Amended by Ord. 146, June 14, 2017; Amended by Ord. 148, May 9, 2018) Collection of Charges Based on Section (FG); Billing. The District Manager and Engineer shall, within 15 days after the beginning of each calendar quarter (the first calendar quarter being in April of each year), prepare a detailed statement showing the quarterly charge. Said quarterly charge shall be based on the monthly average of the water consumption (with allowances for landscaping and other non-sewer terminating waters) of the 12 calendar months of January through December preceding the fiscal year for which the charge is being calculated. The procedure shall apply for each commercial, industrial or miscellaneous premises and for commercial, industrial or miscellaneous condominium premises for which the alternate charge provided for in Section (FG) has been applied on July 1 of the fiscal for which the charge is to be applied and the volume of discharge is not measured. Such statement shall contain the basis of the calculations, the location of the premises and other relevant information. The District Manager and Engineer shall mail said bill or invoice to the person or persons listed as the owners of the premises on the last equalized assessment roll of the County of Santa Clara at the address shown on such assessment roll or to the successor in interest of such owner if the name and address of such successor in interest is known to the District Manager and Engineer. Failure to mail any such bill or invoice, or failure of any owner to receive any such bill or invoice shall not excuse the owner of any premises from the obligation of paying any sewer service and use charge for any premises owned by him. The interested owner may, at any reasonable time, review the detailed statement prepared by the District Manager and Engineer. The sewer service and use charge for such premises shall be due and payable on the date the bill or invoice referred to in this section is mailed. (Adopted by Ord. 55, May 26,1976; Amended by Ord. 58, May 12, 1977; Amended by Ord. 92, May 14, 1986; Amended by Ord. 146, June 14, 2017; Amended by Ord. 148, May 9, 2018) Page 6

76 Collection of Charges Omitted From Tax Roll and for Governmental and Public Premises; Billing. The District Manager or his authorized representatives shall prepare a detailed statement containing the basis of the calculations, the location of the premises and other relevant information, showing the total charge for: (A) any premises which should be collected on the tax roll pursuant to Section , but was omitted from the tax roll or premises the charge for which is collected pursuant to Section (EF). (B) any governmental or public premises, or any premises which are not subject to taxation on the tax roll. Under the authority of California Code of Civil Procedure Section 338(a), the District Manager may collect past due or missed payments for the current year and for up to the previous three years, if applicable. On the basis of the statement, the District Manager shall prepare a bill or invoice and shall mail said bill or invoice to the person or persons listed as the owners of the premises on the last equalized assessment roll of the County of Santa Clara at the address shown on such assessment roll or to the successor in interest of such owner if the name and address of such successor in interest is known to the District Manager. Failure to mail any such bill or invoice, or failure of any owner to receive any such bill or invoice shall not excuse the owner of any premises from the obligation of paying any sewer service and use charge for any premises owned by him. The interested owner may, at any reasonable time, review the detailed statement prepared by the District Manager. The sewer service and use charge for such premises shall be due and payable on the date the bill or invoice referred to in this section is mailed. (Adopted by Ord. 55, May 26, 1976; Amended by Ord. 146, June 14, 2017; Amended by Ord. 148, May 9, 2018) Adjustments. It is the intent of the provisions of this Chapter, in establishing different sewer service charges for different classes of premises, to establish higher charges for those classes of premises which derive greater benefit from or impose greater burdens upon, the sanitary sewer system because of the quantity, quality or rate of flow of sanitary sewage and industrial wastes which may be or is discharged by such class of premises into said sewer system, giving full consideration to other fees or taxes charges which may be paid by owners of said premises for the operation, maintenance, expansion, extension or development of said sewer system. If, with respect to any of said premises, the Board of Directors of the district should find that the charge applicable thereof is unfair or inequitable, then in that event said bboard may by resolution, agreement or otherwise, establish a special sewer service and use charge for such premises, different from those above provided, and having a closer relationship to the benefit received, or burden placed, by such premises from or upon said sanitary sewer system, giving due consideration to other fees or taxes charges paid by such premises for said sewer system. However, any such agreement and any such special sewer charge may at any time be revoked or changed by resolution of the said bboard whenever it finds that continuance of the same would be unfair or inequitable in the circumstances. (Adopted by Ord. 55, May 26, 1976; Amended by Ord. 148, May 9, 2018) Page 7

77 Payment of Balance of Charge. If the charge for any premises to be collected on the tax roll, or for any premises collected under Section (FG) or Section was less than what should be the charge therefore under the provisions of this Chapter, the balance of said charge shall be collected by a bill or invoice based on a detailed statement showing the bases of the calculations, the location of the premises and other relevant information, and prepared on or after October 1 st for the preceding 6 months from July to December during which a discrepancy between the amount collected and the correct charge is discovered, and on or after April 1 st for the preceding 6 months from January to June during which such a discrepancy is discovered. The District Manager and Engineer shall mail said bill or invoice to the person or persons listed as the owners of the premises on the last equalized assessment roll of the County of Santa Clara at the address shown on such assessment roll or to the successor in interest of such owner if the name and address of such successor in interest is known to the District Manager and Engineer. Failure to mail any such bill or invoice, or failure of any owner to receive any such bill or invoice, shall not excuse the owner of any premises from the obligation of paying the balance of any sewer service and use charge for any premises owned by him. The interested owner may, at any reasonable time, review the detailed statement prepared by the District Manager and Engineer. The balance of the sewer service and use charge for such premises shall be due and payable on the date the bill or invoice referred to in this section is mailed. (Adopted by Ord. 55, May 26, 1976; Amended by Ord. 146, June 14, 2017; Amended by Ord. 148, May 9, 2018) Page 8

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79 RESOLUTION NO RESOLUTION OF THE BOARD OF DIRECTORS OF WEST VALLEY SANITATION DISTRICT OF SANTA CLARA COUNTY, CALIFORNIA, ADOPTING AN OPERATING BUDGET FOR FISCAL YEAR BY RATIFYING ESTIMATES OF REVENUES TO BE RECEIVED IN SUCH FUNDS AND APPROPRIATING MONIES THEREFROM FOR SPECIFIED ACTIVITIES AND ACCOUNTS AND SETTING FORTH THE CONDITIONS OF ADMINISTERING THE BUDGET WHEREAS, the orderly administration of governmental agencies is dependent on the establishment of a sound fiscal policy of maintaining a proper ratio of expenditures within anticipated revenues and available monies; and WHEREAS, the extent of any operating budget and the degree of its efficiency of performing assigned duties and responsibilities is likewise dependent on the monies made available for that purpose; and WHEREAS, the District Manager and Engineer has submitted his estimates of anticipated revenues and fund balance, and has recommended the allocation of monies for specified activities; NOW, THEREFORE, BE IT RESOLVED that the Board of Directors does hereby adopt the following sections as a part of its fiscal policy: Section 1. The estimate of available fund balance in the operation fund and anticipated revenues to be received in the fund during Fiscal Year as submitted by the District Manager and Engineer in his Proposed Budget and as may have been amended during the budget hearings are hereby ratified. Section 2. There is appropriated from the operating fund the sum of money as has been determined during the budget hearing for the purposes as expressed and estimated for each department activity, subject to the conditions as set forth in Section 3, as hereinafter described. Section 3. For orderly and proper administration of the Operating Budget and of the monies appropriated in Section 2 above, the following conditions, authorizations and restrictions shall apply. Section 3.1. No appropriation shall be encumbered nor shall any expenditure be made in excess of that appropriated except as hereinafter provided. Section 3.2. The District Manager and Engineer is hereby authorized to transfer funds for Salaries and Employee Benefits from one department to any other department, when in his opinion such becomes necessary for administrative purposes. Section 3.3. The District Manager and Engineer is hereby authorized to transfer any unencumbered appropriation from one department to any other department within the same major 1

80 account or between major accounts when in his opinion such becomes necessary for administrative purposes. Major account is defined as: Salaries and Employee Benefits, Maintenance and Operation, Capital Outlay, and Reserves. Section 3.4. The Board of Directors reserves the right to appropriate on its own volition any additional sums of money not previously appropriated to any major account as it may deem necessary or desirable. Section 3.5. The District Manager and Engineer is hereby authorized to transfer any unencumbered appropriation from one line item account to another line item account within the same major account or between major accounts when such is necessary to prevent an overencumbrance or an over-expenditure in any one line item account; provided, however, that such transfer shall be only after the concurrence of the affected department head. Section 4. The District Manager and Engineer shall cause to be prepared a budget document incorporating therein the amounts appropriated in Section 2 above, the estimate of the available operating fund balance including necessary reserves and anticipated revenues ratified in Section 1 above, the detail accounts and estimated accounts comprising the total for each of the major accounts which were combined with the amount appropriated to each function and such other detail and fund activity will provide an informative and useful working tool in administering fiscal policy. Section 5. The District Manager and Engineer is hereby authorized to continue the appropriation of any unexpended balance on June 30, 2018, for the Budget for necessary and unappropriated reserves as delineated in Section 4. PASSED AND ADOPTED at a regular meeting of the Board of Directors of West Valley Sanitation District of Santa Clara County the 9 th day of May, 2018, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Directors Directors Directors Directors Attest: Chairperson, Board of Directors West Valley Sanitation District of Santa Clara County Secretary 2

81 PROPOSED BUDGET FISCAL YEAR WEST VALLEY SANITATION DISTRICT SANTA CLARA COUNTY CALIFORNIA SERVING RESIDENTS OF CITY OF CAMPBELL TOWN OF LOS GATOS CITY OF MONTE SERENO CITY OF SARATOGA UNINCORPORATED AREA OF SANTA CLARA COUNTY

82 PROPOSED BUDGET FISCAL YEAR WEST VALLEY SANITATION DISTRICT OF SANTA CLARA COUNTY, CALIFORNIA 100 East Sunnyoaks Avenue Campbell, California Submitted By JON NEWBY DISTRICT MANAGER AND ENGINEER TO BOARD OF DIRECTORS ROWENA TURNER MANNY CAPPELLO STEVEN LEONARDIS PAUL RESNIKOFF MIKE WASSERMAN COUNCIL MEMBER, CITY OF MONTE SERENO VICE MAYOR, CITY OF SARATOGA VICE MAYOR, TOWN OF LOS GATOS MAYOR, CITY OF CAMPBELL SUPERVISOR, FIRST DISTRICT SANTA CLARA COUNTY

83 WEST VALLEY SANITATION DISTRICT OF SANTA CLARA COUNTY, CALIFORNIA PROPOSED BUDGET FOR FISCAL YEAR TABLE OF CONTENTS Estimated Expenditures for Fiscal Year and Summary of Proposed Fiscal Year Operating Budget 2 Detail of Salaries and Employee Benefits, Fiscal Year Operating Budget.4 Schedule of Available Funds and Balance in Operating Fund June 30, 2018 and June 30, Detail of Fiscal Year Operating Expenses...6 Capital Outlay Fiscal Year Budget Detail.10 Fiscal Year Operating Summary and Projections through Fiscal Year APPENDIX A: CAPITAL IMPROVEMENT PROGRAM FISCAL YEARS APPENDIX B: SEWER SERVICE REVENUE PROGRAM

84 ESTIMATED EXPENDITURES FOR FISCAL YEAR AND SUMMARY OF FISCAL YEAR OPERATING BUDGET EXPENDITURES FISCAL YEAR PROPOSED BUDGET Expenditure Classification Modified Sewer Sewage and Account Number Budget Estimated Administration Engineering Operations Disposal Total SALARIES AND EMPLOYEE BENEFITS 010 Salaries $ 3,410,990 $ 3,361,809 $ 1,268,082 $ 752,937 $ 1,583,499 $ - $ 3,604, Employee Benefits 1,995,728 1,636, , , ,716-1,768,025 Total Salaries and Employee Benefits $ 5,406,718 $ 4,998,304 $ 1,810,714 $ 1,055,614 $ 2,506,215 $ - $ 5,372,543 2MAINTENANCE AND OPERATIONS 030 Directors' Fees 11,800 9,300 11, , Gasoline, Oil & Fuel 60,000 60, ,000-65, Insurance 275, , , , Memberships 42,350 32,518 30,700 3,650 3,000-37, Office Expense 56,300 46,425 37,000 4,350 5,000-46, Information Services 290, , ,590 67,980 77, , Contractual Services 301, , ,154 8,500 22, , Treatment Plant Operation 9,735,726 9,631, ,976,000 9,976, Professional Services 1,129,635 1,045, , ,000 40, , Printing & Public Notices 28,000 27,950 15,000 2, , Rents and Leases 12,000 12,000 15, , Repairs and Maintenance 365, ,750 3,500 4, , , Professional Development 113,750 90,250 30,000 25,750 48, , Utilities 130, ,500 48,000-90, , Miscellaneous 62,350 71,600 33,750 2,100 5,500-41, Revenue Bond Debt Service 823, , , , Debt Cost of Issance , , Line of Credit Payoff Total Maintenance and Operations $ 13,437,970 $ 13,149,912 $ 1,445,494 $ 509,830 $ 720,030 $ 10,796,167 $ 13,471,521

85 EXPENDITURES FISCAL YEAR PROPOSED BUDGET Expenditure Classification Modified Sewer Sewage and Account Number Budget Estimated Administration Engineering Operations Disposal Total CAPITAL OUTLAY General Fixed Assets $ 663,000 $ 615,500 $ 10,000 $ 5,000 $ 851,000 $ - $ 866,000 Subsurface Lines & Misc. Construction Proj. 5,762,372 2,521,632-4,215, ,215,000 Septic System Abandonment Program 110,000 25, , ,000 Treatment Plant & Joint Lines 13,064,359 10,981, ,049,700 11,049,700 TOTAL CAPITAL OUTLAY $ 19,599,731 $ 14,143,621 $ 10,000 $ 4,630,000 $ 851,000 $ 11,049,700 $ 16,540,700 RESERVES Operating Reserve 12,014,303 11,549,988 12,165,931 Capital Reserve 6,535,372 3,162,132 5,491,000 3Debt Service Reserve446, , ,763 Vehicle Replacement Reserve 748, , ,500 UAL Pension Reserve 300, , ,000 Undesignated Reserve 1,010,416 14,385,218 8,127,217 TOTAL RESERVES $ 21,054,966 $ 30,617,213 $ 27,489,411 SUMMARY Salaries & Employee Benefits 5,406,718 4,998,304 1,810,714 1,055,614 2,506,215-5,372,543 District Maintenance & Operations 2,879,010 2,695,054 1,445, , ,030-2,675,354 Treatment Plant Operation 9,735,726 9,631, ,976,000 9,976,000 Revenue Bond Debt Service 823, , , ,167 Debt Cost of Issance , ,000 Capital Outlay - General 663, ,500 10,000 5, , ,000 Capital Outlay - Subsurface Lines 5,762,372 2,521,632-4,215, ,215,000 Capital Outlay - SSAP 110,000 25, , ,000 Capital Outlay - Plant 13,064,359 10,981, ,049,700 11,049,700 TOTAL EXPENDITURES $ 38,444,419 $ 32,291,837 $ 3,266,208 $ 6,195,444 $ 4,077,245 $ 21,845,867 $ 35,384,764 TOTAL EXPENDITURES AND RESERVES $ 59,499,385 $ 62,909,050 $ 62,874,175

86 DETAIL OF SALARIES AND EMPLOYEE BENEFITS, FISCAL YEAR OPERATING BUDGET Administration & Info. Svc. Engineering Operations POSITION TITLES District Manager and Engineer Director of Admin./Information Services 1.00 Senior Accountant 1.00 Senior Account Clerk 2.00 Account Clerk II 1.00 Administrative Assistant II (Part Time) 0.50 Information Services Coordinator 1.00 Construction Inspector II Assistant Engineering Technician 1.00 Senior Engineering Technician 1.00 Director of Engineering/Operations Senior Civil Engineer 1.00 Assistant Engineer 1.00 GIS Analyst 1.00 Student Intern 0.38 Operations Supervisor 1.00 Supervising Leadworker 1.00 Maintenance Leadworker (Specialized) 3.00 Maintenance Leadworker 1.00 Maintenance Worker I/II (Specialized) 3.00 Maintenance Worker I/II 3.00 TOTAL FTEs Administration & Info. Svc. Engineering Operations Total TOTAL SALARIES 1,268, ,937 1,583,499 3,604,518 EMPLOYEE BENEFITS: Retirement 143,225 84, , ,863 Workers' Compensation 4,088 2,181 44,458 50,727 Employee Group Insurance 254, , , ,760 Retiree Medical , ,928 FICA Employer Tax 87,600 50, , ,747 OPEB Funding 52,909 31,341 65, ,000 TOTAL BENEFITS 542, , ,716 1,768,025 TOTAL SALARIES AND BENEFITS $ 1,810,714 $ 1,055,614 $ 2,506,215 $ 5,372,543 4

87 SCHEDULE OF AVAILABLE FUNDS AND BALANCE IN OPERATING FUND JUNE 30, 2018 AND JUNE 30, 2019 ESTIMATED PROPOSED BUDGET Fiscal Year Fiscal Year BALANCE IN OPERATING FUND - JULY 1 $ 32,047,785 $ 30,617,213 FISCAL YEAR REVENUES: Operating Revenues: Sewer Service Charges Collected on Tax Roll 24,233,803 25,687,831 Direct Billings 1,063,400 1,127,204 At Issuance of Permits 60,000 80,000 Total Sewer Service Charges Net 25,357,203 26,895,035 Fees for Other Services Permit and Inspection Fees 262, ,000 Labor and Overhead Billed 31,000 1,000 Connection Fees 600,000 3,830,000 Treatment Plant Capacity Fees 240, ,000 Plan Checking Fees 2,100 4,000 Storm Cleaning Fees 85,000 - Storm Fund Administrative Fees 7,621 7,630 Hillside Fee 78, ,628 Total Fees for Other Services 1,306,321 5,168,258 Total Operating Revenues 26,663,524 32,063,293 Non-Operating Revenues Interest 130, ,650 Sewer Extension & Replacement Financing - P & I 47,977 48,019 Other 52,065 15,000 Return of O&M and Capital From City of San Jose 1 3,967,699 - Line of Credit Drawdown - - Total Non-Operating Revenues 4,197, ,669 TOTAL FISCAL YEAR REVENUES 30,861,265 32,256,962 TOTAL FUNDS AVAILABLE 62,909,050 62,874,175 FISCAL YEAR EXPENDITURES 32,291,837 35,384,764 BALANCE IN OPERATING FUND - JUNE 30 $ 30,617,213 $ 27,489,411 1 Return of O&M and Capital from the City of San Jose was previously credited against the current year Treatment Plant expenditures. 5

88 * Account Prefix DETAIL OF FISCAL YEAR OPERATING EXPENSES 45* 42* 41* 43* Account Sewage Number Expense Classification Admin. Engineering Operations Disposal Total DIRECTORS' FEES Board Meeting Fees $ 10, $ 10, Miscellaneous Meetings 1, , Sewer Advisory Board Fees TOTAL 11, ,800 GASOLINE, OIL AND FUEL Vehicles and Equipment ,000-65,000 TOTAL ,000-65,000 INSURANCE General District Insurance 175, , Insurance Deductible 100, ,000 TOTAL 275, ,000 MEMBERSHIPS American Public Works Association California Association of Sanitation Agencies 20, , California Water Environment Association (CWEA) ,000-3, Santa Clara County Intergovernmental Employee Relations Service SCC Spec Dist Assoc 1, , American Society of Civil Engineers Water Environment Federation (WEF) - 1, , Other 8,500 1, , Water Environ. Research Federation (WERF) Pipe Users Group TOTAL 30,700 3,650 3,000-37,350 OFFICE EXPENSES Books, Manuals, Periodicals 1, , Photographic Supplies Postage 15, , Miscellaneous Office Expense 20,000 3,500 4,000-27, County Recorder Fees Engineering Field Supplies TOTAL 37,000 4,350 5,000-46,350 INFORMATION SERVICES Computer Maintenance Agreements 75,690 39,430 44, , Software and Training 5,000 5,000 5,000-15, Hardware Repairs & Supplies 2,000 1,000 1,000-4, Maps (County Base & Real Estate) 7, , Information Technology Support 19,700 9,850 9,850-39, Internet Access 5,000 2,500 2,500-10, Computer Hardware & Equipment 12,200 10,200 15,100-37,500 TOTAL 126,590 67,980 77, ,400 6

89 * Account Prefix DETAIL OF FISCAL YEAR OPERATING EXPENSES 45* 42* 41* 43* Account Sewage Number Expense Classification Admin. Engineering Operations Disposal Total CONTRACTUAL SERVICES Protective Clothing ,000-18, Drug & Alcohol Testing Program (DATCO) - - 1,500-1, Computer Accounting Services - B of A 21, , County Collection Charges - 1% of tax roll 268, , Underground Service Alert - 7, , Other - 1,000 2,500-3,500 TOTAL 289,154 8,500 22, ,654 TREATMENT PLANT OPERATION Treatment Plant Operation ,976,000 9,976,000 TOTAL ,976,000 9,976,000 PROFESSIONAL SERVICES Accounting and Audit 15, , Legal - General 400, , Management/Engineering Consulting 80, , Legal - Litigation 20, , Misc. Civil Engineering - 25, , Consultant for Metering Station - 10, , Hydraulic Capacity Study - 25, , Actuarial Studies 5, , Safety Management Plan ,000-40, CIP Prioritization & Development - 5, , Large Sewer Inspection - 175, , Private Lateral Replacement Program 10, , Inflow and Infiltration (I/I) Reduction Program - 150, ,000 TOTAL 530, ,000 40, ,000 PRINTING AND PUBLIC NOTICES Advertising/Public Notices 10, , Blueprinting & Scanning - 2, , Printing 5, ,450 TOTAL 15,000 2, ,950 RENTS AND LEASES Photocopy Machine 15, ,000 TOTAL 15, ,000 7

90 * Account Prefix DETAIL OF FISCAL YEAR OPERATING EXPENSES 45* 42* 41* 43* Account Sewage Number Expense Classification Admin. Engineering Operations Disposal Total REPAIRS AND MAINTENANCE Buildings and Grounds Services and Repairs ,000-80, Supplies ,000-10,000 Vehicles and Equipment Vehicles ,000-35, Mounted Equipment ,000-25, Portable Equipment ,000-10, Pump Station ,000-20, CCTV ,000-30, Rental Fees and Leases - - 2,500-2, Testing, Licensing and Fees - - 1,000-1,000 Collection System Services and Repair ,000-15, Construction Materials and Supplies ,000-10, Cleaning Tools and Parts ,000-30, Flow Monitoring and Measurement ,000-10, Excavation & Environmental Health Permits - - 3,000-3, CWC Section Annual Fees (SWRCB) ,500-12,500 Operating Supplies Small Shop/Field Tools 2,000 3,500 6,000-11, Shop/Field Supplies 500-4,000-4, Grease, Oil and Solvents - - 3,500-3,500 Safety Equipment and Supplies Equipment ,000-10, Clothing and Gear 1, ,000-9, Confined Space Services ,000-15,000 Sewer Overflow Expenses Cleanup and Claims ,000-15, Water Quality Testing and Supplies - - 5,000-5, Lodging, Relocation and Expenses - - 2,500-2,500 TOTAL 3,500 4, , ,250 PROFESSIONAL DEVELOPMENT Tuition Reimbursement 1,500 1,000 1,000-3, Water Environment Federation Conference 500 5,000 2,500-8, CASA Conference - Directors 3, , CASA Conference - Attorney 1, , CASA Conference - Staff 2,500 4, , CWEA Conference - Manager CWEA Conference - Staff - 2,000 10,000-12, CWEA, APWA & ASCE Local Section - 2,000 2,500-4, City Management Meetings Safety Training 1, ,000-19, Special Districts Association Meetings American Public Works Assoc. Conference Miscellaneous Staff Training 10,000 4,000 10,000-24, NASTT-Trenchless Technology - 2, , CALPERA & CALPERS 2, , Lucity, ESRI & Tyler Conference 5,000 4,000 1,000-10, Professional Licenses & Certifications 1, ,500-4,250 TOTAL 30,000 25,750 48, ,750 UTILITIES Electricity & Gas-Office,Shop & Pump Stn. 28,000-3,000-31, Radio Communications/Repairs ,000-60, Telephone 15, , Trash Disposal - - 5,000-5, Water: Office, Shop, and Grounds 5, , Water for Sewer Cleaning ,500-22,500 TOTAL 48,000-90, ,500 8

91 * Account Prefix DETAIL OF FISCAL YEAR OPERATING EXPENSES 45* 42* 41* 43* Account Sewage Number Expense Classification Admin. Engineering Operations Disposal Total MISCELLANEOUS Miscellaneous , Automobile Mileage Allowance , Refunds 30, , Safety Awards Employee Recognition 2, ,500-4, Physicals/Innoculations/Test HEP etc ,500-2, Overtime Meals 50-1,000-1,050 TOTAL 33,750 2,100 5,500-41,350 REVENUE BOND DEBT SERVICE Revenue Bond Debt Service/Water Reclam Revenue Bond Debt Service Series , , State Revolving Fund Loan , ,404 TOTAL , ,167 COMMERCIAL PAPER DEBT SERVICE Commercial Paper - COI , ,000 TOTAL , ,000 TOTAL OPERATING EXPENSES $ 1,445,494 $ 509,830 $ 720,030 $ 10,796,167 $ 13,471,521 9

92 CAPITAL OUTLAY FISCAL YEAR BUDGET DETAIL 45* 42* 41* 43* Account Sewage Number Expense Classification Admin. Engineering Operations Disposal Total GENERAL FIXED ASSETS Property Improvements Miscellaneous Property Improvements $ - $ - $ 150,000 $ - $ 150,000 Subtotal Property Improvements , ,000 Vehicles, Other, Furniture and Equipment Vehicles , , Computer Equipment ,000-26, Furniture & Equipment - Operations ,000-75, Furniture & Equipment - Administration 10, , Furniture & Equipment - Engineering - 5, , Computer Software Subtotal Vehicles, Other, Furniture and Equipment 10,000 5, , ,000 TOTAL GENERAL FIXED ASSETS $ 10,000 $ 5,000 $ 851,000 $ - $ 866,000 10

93 CAPITAL OUTLAY FISCAL YEAR BUDGET DETAIL 45* 42* 41* 43* Account Sewage Number Expense Classification Admin. Engineering Operations Disposal Total SUBSURFACE LINES - REHABILITATION Quito Basin (Wildcat Creek Area Bn 7-3 & 7-4) - 250, , University Ave Trunk (Blossom Hill to Route 85) - 2,100, ,100, LG Creek Trunk (Vasona Lake) - 5, , University Ave (Elm-Bloosom Hill) - 150, , Winchester Blvd (Knowles to Old Orchard) - 125, , Harrison Avenue (R/R to Hamilton) Santa Rosa Esmt Sewer Realignment Ph1-150, , Santa Rosa Esmt Sewer Realignment Ph Subtotal Subsurface Lines - Rehabilitation - 2,780, ,780,000 MISCELLANEOUS CONSTRUCTION PROJECTS Sewer Extension Revolving Fund Projects - 10, , Sewer Contract Repairs - 1,350, ,350, District Manhole Adjustments - 75, ,000 Subtotal Miscellaneous Construction Projects - 1,435, ,435,000 TOTAL - DISTRICT PROJECTS - 4,215, ,215,000 TREATMENT PLANT AND SAN JOSE JOINT LINES WWTP Projects 6,203,600 6,203, th Interceptor " Brick Interceptor Rehab 1,797,800 1,797, South Bay Action Plan Moorpark-Meridian Trunk Rehab. Phase Zanker Road Interceptor Cleaning Rincon-Virginia Santary Sewer Improvements 2,130,000 2,130, Westmont-Hariet Santary Sewer Improvements 880, , Fourth Major Interceptor Ph VIIA 38,300 38,300 TOTAL TREATMENT PLANT AND JOINT LINES 11,049,700 11,049,700 SEPTIC SYSTEM ABANDONMENT PROGRAM Septic Disposal Conversion Program 10,000 10, Septic Abandonment Construction Projects 400, ,000 TOTAL SEPTIC SYSTEM ABANDONMENT PROGRAM 410, ,000 TOTAL CAPITAL OUTLAY $10,000 $4,630,000 $ 851,000 $11,049,700 $ 16,540,700 11

94 FISCAL YEAR OPERATING SUMMARY AND PROJECTIONS THROUGH FISCAL YEAR OPERATING FUND APPROPRIATIONS ** Salaries and Benefits: Administration and General $ 1,666,965 $ 1,810,714 $ 1,874,089 $ 1,939,682 $ 2,007,571 $ 2,077,836 Service Extension 972,283 1,055,614 1,092,560 1,130,800 1,170,378 1,211,341 Sewer Maintenance 2,359,056 2,506,215 2,593,933 2,684,721 2,778,686 2,875,940 Sub-Total 4,998,304 5,372,543 5,560,582 5,755,203 5,956,635 6,165,117 Maintenance and Operation: Administration and General 1,444,293 1,445,494 1,496,086 1,237,949 1,281,277 1,326,122 Service Extension 559, , , , , ,042 Sewer Maintenance 691, , , , , ,251 Sewage Disposal 9,631,624 9,976,000 10,464,000 10,831,000 11,211,000 11,603,000 Debt Service 823, , ,388 2,235,778 3,223,669 3,227,140 Cost of Debt Issuance - 225, , , Line of Credit Payoff ,947, Sub-Total 13,149,912 13,471,521 14,195,415 56,554,238 17,079,514 17,567,555 Capital Outlay: General Fixed Assets 615, , , , , ,035 Subsurface Lines 2,521,632 4,215,000 5,660,000 6,060,000 5,460,000 4,220,000 Septic System Abandonment 25, ,000 60,000 60,000 60,000 60,000 Treatment Plant & Joint Lines 10,981,489 11,049,700 22,444,987 22,097,196 5,821,024 8,896,101 Sub-Total 14,143,621 16,540,700 28,956,047 29,034,193 12,107,241 14,019,136 TOTAL EXPENDITURES 32,291,837 35,384,764 48,712,044 91,343,634 35,143,390 37,751,808 RESERVES Operating Reserve 11,549,988 12,165,931 12,871,739 13,417,132 13,208,320 13,670,355 Capital Reserve 3,162,132 5,491,000 6,511,060 6,936,997 6,286,217 5,123,035 Debt Service Reserve 446, , ,388 2,235,778 3,223,669 3,227,140 Vehicle Replacement Reserve 773, , , , , ,500 UAL Pension Reserve 300, , ,000 1,200,000 1,500,000 1,800,000 Undesignated Reserve 14,385,218 8,127,217 $8,417,915 $5,245,500 $3,393,464 $1,459,028 Sub-Total 30,617,213 27,489,411 29,796,602 29,782,907 28,252,920 26,052,058 TOTAL BUDGET $62,909,050 $62,874,175 $78,508,646 $121,126,541 $63,396,310 $63,803,866 RESOURCES Fund Balance at June 30 $ 32,047,785 $ 30,617,213 $27,489,411 $ 29,796,602 $ 29,782,907 $ 28,252,920 Service Charges* 25,357,203 26,895,035 28,508,737 30,219,261 32,032,417 33,954,362 SSAP Agreement Payments 47,977 48,019 45,714 42,088 21,206 21,206 Other Income 5,456,085 5,313,908 1,529,047 1,544,337 1,559,780 1,575,378 Line of Credit/Bond Proceeds ,935,737 59,524, TOTAL RESOURCES $62,909,050 $62,874,175 $78,508,646 $121,126,541 $63,396,310 $63,803,866 *Rate Increase: 9.0% 6.0% 6.0% 6.0% 6.0% 6.0% * Projected Rate ** Estimate 12

95 APPENDIX A CAPITAL IMPROVEMENT PROGRAM FISCAL YEARS

96 FY CAPITAL IMPROVEMENT PROGRAM Year Total Modified Budget Estimate Proposed Budget Forecasts Forecasts Forecasts Forecasts Forecasts CONSTRUCTION PROJECTS 1. Wastewater Treatment Plant WWTP Projects $ 10,694,359 $ 10,629,657 $ 6,203,600 $ 19,303,087 $ 19,490,496 $ 4,872,624 $ 7,996,101 $ 57,865,908 Subtotal WWTP Contributions: $ 10,694,359 $ 10,629,657 $ 6,203,600 $ 19,303,087 $ 19,490,496 $ 4,872,624 $ 7,996,101 $ 57,865, Joint Trunk Sewer Projects Fourth Interceptor (Rehab IIB & IIIB) $ - $ 15,832 $ - $ - $ - $ - $ - $ - 60" Brick Interceptor 1,720,000 36,000 1,797,800 1,123,600 1,123, ,500-4,457,500 Rincon-Virginia Sanitary Sewer Improvements 650, ,000 2,130,000 1,200, , ,880,000 Westmont-Harriet Sanitary Sewer Improvement - 100, , , , ,440,000 Fourth Major Interceptor Ph VIIA ,300 38, , , ,000 1,665,600 Subtotal Joint Trunk Sewer Participation: $ 2,370,000 $ 351,832 $ 4,846,100 $ 3,141,900 $ 2,606,700 $ 948,400 $ 900,000 $ 12,443,100 Total San Jose Projects: $ 13,064,359 $ 10,981,489 $ 11,049,700 $ 22,444,987 $ 22,097,196 $ 5,821,024 $ 8,896,101 $ 70,309, District Sewer Rehabilitation Program Quito Basin (Wildcat Creek Area Bn 7-3 & 7-4) $ 1,000,000 $ 75,000 $ 250,000 $ 1,000,000 $ 750, $ 2,000,000 University Ave ACP (Blossom Hill to Route 85) 2,050, ,000 2,100, ,100,000 LG Creek Trunk (Vasona Lake) 700, ,000 5, ,000 University Ave (Elm - Blossom Hill) 250,000 50, ,000 1,000, , ,750,000 San Tomas (Old Orchard - Campbell) ,000 1,500, ,000-2,150,000 Winchester Blvd (Knowles - Old Orchard) ,000 1,500, , ,175,000 Harrison Avenue (R/R to Hamilton) ,000 1,050,000-1,175,000 Campbell Downtown Ph 1 (2nd to Winchester) ,000 1,225,000-1,350,000 Campbell Downtown Ph 2 (1st to Harrison) ,000 1,225,000 1,350,000 Leigh Basin 3 Area ,000 1,300,000 1,450,000 Santa Rosa Esmt Sewer Realignment Ph1 200,000 44, , ,000 1,000,000 1,000,000-2,750,000 Santa Rosa Esmt Sewer Realignment Ph , ,000 Subtotal District Sewer Rehabilitation: $ 4,200,000 $ 969,260 $ 2,780,000 $ 4,250,000 $ 4,650,000 $ 4,050,000 $ 2,825,000 $ 18,555,000 Page 1

97 FY CAPITAL IMPROVEMENT PROGRAM Year Total Modified Budget Estimate Proposed Budget Forecasts Forecasts Forecasts Forecasts Forecasts CONSTRUCTION PROJECTS 4. Septic System Abandonment Program Septic Disposal Conversion Program $ 10,000 $ - $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 50,000 Septic System Abandonment Program 100,000 25, ,000 50,000 50,000 50,000 50, ,000 Subtotal SSAP Program: $ 110,000 $ 25,000 $ 410,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 650, Miscellaneous Construction Projects SERF Projects $ 10,000 $ - $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 50,000 Sewer Contract Repairs 1,459,407 1,459,407 1,350,000 1,350,000 1,350,000 1,350,000 1,335,000 6,735,000 District Manhole Adjustments 92,965 92,965 75,000 50,000 50,000 50,000 50, ,000 Subtotal Miscellaneous Construction: $ 1,562,372 $ 1,552,372 $ 1,435,000 $ 1,410,000 $ 1,410,000 $ 1,410,000 $ 1,395,000 $ 7,060,000 NON-CONSTRUCTION CAPITAL Vehicles, Furniture & Equipment $ 588,000 $ 565,500 $ 716,000 $ 741,060 $ 766,997 $ 716,217 $ 793,035 $ 3,733,309 Property Improvements 75,000 50, ,000 50,000 50,000 50,000 50, ,000 Subtotal Non-Construction Capital: $ 663,000 $ 615,500 $ 866,000 $ 791,060 $ 816,997 $ 766,217 $ 843,035 $ 4,083,309 TOTAL CAPITAL OUTLAY: $ 19,599,731 $ 14,143,621 $ 16,540,700 $ 28,956,047 $ 29,034,193 $ 12,107,241 $ 14,019,136 $ 100,657,317 Page 2

98 APPENDIX B SEWER SERVICE REVENUE PROGRAM

99 WEST VALLEY SANITATION DISTRICT SANTA CLARA COUNTY, CALIFORNIA PROPOSED REVENUE PROGRAM FOR SEWERAGE SERVICES FISCAL YEAR APRIL, 2018 PREPARED BY JON NEWBY DISTRICT MANAGER AND ENGINEER

100 SEWER SERVICE REVENUE PROGRAM Ordinance No. 148, establishing sewer service charges for fiscal years through fiscal year , will be adopted by the Board of Directors of West Valley Sanitation District on May 9, 2018, after a public hearing is held in accordance with provisions of Article XIIID, Section 6 of the California Constitution, otherwise known as Proposition 218. Sewer service and use charges for residential and non-residential connections are shown on the following pages. The sewer service and use charges pay for the operation, maintenance and improvements of the sanitary sewer system that conveys wastewater through the sewer system to the San Jose-Santa Clara Regional Wastewater Facility (Treatment Plant). The sewer service charges also support the District s share of operation and maintenance of the treatment plant and associated environmental protection programs required to meet Federal and State water quality permits for protection of the South San Francisco Bay. The sewer service charges and fees are based on financial projections and a rate analysis prepared for the District by an independent consultant, and is sufficient for cost recovery requirements. Questions about the sewer service charge schedule may be directed to: Jon Newby, District Manager and Engineer West Valley Sanitation District of Santa Clara County 100 East Sunnyoaks Avenue Campbell, CA jnewby@westvalleysan.org

101 WEST VALLEY SANITATION DISTRICT SANTA CLARA COUNTY, CALIFORNIA SEWER SERVICE AND USE CHARGES FISCAL YEAR The proposed Sewer Service and Use Charge rate structure for Fiscal Year charges users of sewerage service in West Valley Sanitation District (formerly County Sanitation District No. 4) on the benefit received principle, in conformance with the FINANCIAL PLAN AND REVENUE GUIDELINES FOR WASTEWATER AGENCIES adopted by the California State Water Resources Control Board. The rates were computed to recover projected costs in fiscal year for the following: a. District s share of operation and maintenance of the San Jose-Santa Clara Regional Wastewater Facility. b. Plant improvements, equipment replacement, and modification. c. Maintenance and operation of District wastewater collection and conveyance system. d. Collection system maintenance equipment and construction. e. General administrative services. f. Extension of service of collection system. g. General and unappropriated reserves. RESIDENTIAL RATES Proposed residential Sewer Service and Use Charge rates, based on the typical wastewater discharge and wastewater strength for residential units, are $46.25 per month or $ per year for each single-family dwelling, $32.96 per month or $ per year for each multiple dwelling, and $31.53 per month or $ per year for mobile home and accessory dwelling unit. The charges are collected on the tax roll for the District through the Santa Clara County Tax Collector s office and are identified as sewer service on the tax bill under WV Sewer Sani/Storm. COMMERCIAL, INSTITUTIONAL, AND GROUPED INDUSTRY RATES The rate structure for commercial, institutional, and grouped industry classes discharging wastewater of uniform strength of less than 50,000 gallons per day is based on the volume of wastewater discharged and wastewater strengths from 15 standard classifications of users. The volume of wastewater discharged for each customer is determined from the customer s adjusted water consumption from the previous year. Adjustments are applied to qualifying properties to B-1

102 minimize the effects of landscape irrigation or other water usage which does not discharge into the sanitary system. The charges are collected on the tax roll for the District through the Santa Clara County Tax Collector s office and are identified as sewer service on the tax bill under WV Sewer Sani/Storm. Properties not on the tax roll are billed directly by the District. MONITORED INDUSTRY RATES Non-residential users discharging more than 50,000* gallons of wastewater of varying strength per day are billed quarterly on the basis of the rate structure, adjusted water consumption, and wastewater strength determined from samples collected during the billing period. *Conforms to State Water Resources Control Board definition of significant users. Monitoring is not cost effective for users with wastewater discharge below 50,000 gallons per day. TREATMENT PLANT CAPACITY FEES The purpose of the treatment plant capacity fee, established in 1982 and modified in 2017 by Ordinance No. 147, is to recover the costs associated with the District s purchase of wastewater treatment capacity in the San Jose-Santa Clara Regional Wastewater Facility. This is a one time fee collected at the time a connection is made to the District s wastewater collection system. The treatment plant capacity fee is computed on four parameters as follows: Flow BOD SS NH3 $4.84 per gallon per day per pound per day per pound per day 1, per pound per day Estimated treatment plant capacity fees for various types of connections are listed below: EXAMPLE CONNECTIONS Typical Typical Residential Capacity Fee Connection Fee Single-Family Residence: $1,397 $9,712 Townhouse/Condominium: 1,397 9,712 Multiple Dwelling: 1,168 8,351 Mobile Home: 1,024 6,727 Accessory Dwelling Unit: 1,024 6,727 B-2

103 Typical Typical Commercial Capacity Fee Connection Fee Fast food restaurant (1,000 sq. ft.) $7,940 $11,547 Full service restaurant (2,300 sq. ft.) 21,104 30,689 Medical Office Doctors (12,500 sq. ft.) 18,338 40,094 Convalescent home (20 beds) 15,257 33,358 Gas station (4,000 sq. ft., 4 pair pumps) 4,687 10,264 Laundromat (10 machines) 27,549 64,150 Market Grocery (15,000 sq. ft.) 25,145 36,566 Small retail store (1,300 sq. ft.) 517 1,218 Office - General (1,800 sq. ft.) 1,373 3,233 Hotel/Motel with dining (50 rooms) 32,694 76,980 Hospital (85 beds) 114, ,827 Coffee shop (1,500 sq. ft.) 3,706 5,389 Donut shop (1,500 sq. ft.) 5,294 7,698 CONNECTION FEE In addition to updating the treatment plant capacity fee, Ordinance No. 147 updated the sewer connection fee to reflect costs associated with replacement and rehabilitation of District sewer lines. The residential connection fee is standardized, and the commercial connection fee is based on flow parameters. The fee is collected when a connection is made to the District s sewer system or when a significant change is made to an existing connection. B-3

104 SEWER SERVICE AND USE CHARGE RATE STRUCTURE FOR FISCAL YEAR I. RESIDENTIAL FY FY % Month Year Month Year Change Single-Family Dwelling $43.77 $ $46.25 $ % Multiple Dwelling Unit $30.55 $ $32.96 $ % Mobile Home $30.55 $ $31.53 $ % Accessory Dwelling Unit - - $31.53 $ II. GROUPED INDUSTRIAL AND COMMERCIAL Dollars per Hundred Cubic Feet of Wastewater Discharged FY FY % Grouped Industrial Change Commercial Winery $13.41 $ % Printing Works $6.21 $ % Machinery Manufacturing $6.50 $ % Electrical Equipment $4.38 $ % Film Service $4.61 $ % Plating Works $4.19 $ % Industrial Laundry $8.74 $ % Car Wash $3.53 $ % Restaurant $8.64 $ % Hotel-Motel $4.48 $ % Gas Station-Repair $4.78 $ % Domestic Laundry $3.92 $ % Retail/Office/Misc. $4.65 $ % Hospitals $4.16 $ % Schools $5.23 $ % B-4

105 III. SIGNIFICANT INDUSTRIAL (over 50,000 gpd discharge) FY FY % Operation and Maintenance Cost Recovery Change Charge per MGD of Flow $1,790 $4, % Charge per 1000 lbs of BOD % Charge per 1000 lbs of SS % Charge per 1000 lbs of NH 3 1,311 2, % Rates shown are annual charges per designated quantity. Cost recovery factors are based in part on loading parameters provided by the San Jose-Santa Clara Regional Wastewater Facility. B-5

106

107 Public Hearing to Consider the Continuation of the Storm Drain Management Fee for Fiscal Year May 3, 2018 Page 2 In accordance with the Ordinance establishing the Storm Drain Service Charge, the Board must conduct a public hearing to review and approve the revenue transition plan covering Fiscal Year proposed charges. Adoption of the resolution will set the fees for the next two fiscal years completing the revenue transition plan. Attached for the Board s review are the following reports: 1. A Report on the Stormwater Revenue Program within the West Valley Sanitation District. 2. A resolution of the Board of Directors of the West Valley Sanitation District of Santa Clara County, California, approving service charges pursuant to Health and Safety Code Section 5471 et seq. The Cities and Town have determined that a fee increase is not warranted at this time, the revenue collected is reasonable related to the services provided for complying with the NPDES permit requirements, and have therefore adopted the assessments at the level for the remaining two fiscal years.

108 RESOLUTION NO RESOLUTION OF THE BOARD OF DIRECTORS OF WEST VALLEY SANITATION DISTRICT OF SANTA CLARA COUNTY, CALIFORNIA, APPROVING SERVICE CHARGES PURSUANT TO HEALTH AND SAFETY CODE SECTION 5471 ET SEQ. AS A TRANSITION PLAN PURSUANT TO RESOLUTION NO The Board of Directors of West Valley Sanitation District of Santa Clara County, California ( District ) resolves as follows: WHEREAS, on May 10, 2017, the Board of Directors of the District adopted Resolution Number approving the District s withdrawal from the Clean Water Program on June 30, 2018 and directing the District Manager and Engineer to develop and implement a transition plan for such withdrawal; and WHEREAS, Resolution Number directed that the transition plan shall include sunset dates by which the District shall cease providing further services under the Clean Water Program; and WHEREAS, the District has agreed to continue to collect the storm drainage service charge through Fiscal Year as an element of its Clean Water Program Transition Plan; and WHEREAS, the District has previously adopted Ordinance No. 114 establishing the authority for creating storm drainage zones and for imposing a storm drainage service charges; and WHEREAS, the District, pursuant to said Ordinance previously adopted Resolution Number adding a storm drainage service charge component to its sanitary sewer service pursuant to Health and Safety Code Section 5471 et seq.; and WHEREAS, said Ordinance and Resolution each require the District Manager and Engineer to review the amount of service charges generated, the estimated cost of implementing the District s storm drainage management program, and the reasonable relationship between the need and the anticipated impact for which the service charge is assessed and reports his findings to the Board of Directors at a noticed public hearing and recommends any adjustment to the service charge or other action as may be needed; and WHEREAS, the District Manager and Engineer has reviewed the foregoing and recommends that no adjustments to the storm drainage service charge need to be made or are necessary for Fiscal Year ; and WHEREAS, because the District Manager and Engineer recommends that the District s collection of the storm drainage service charge sunset in Fiscal Year as part of the Clean Water Program Transition Plan pursuant to Resolution , he further recommends that no 1

109 adjustments to the storm drainage service charge need to be made or are necessary for Fiscal Year as well; and WHEREAS, the District Manager and Engineer presented a draft report entitled Stormwater Management Revenue Program, Fiscal Years which analyzes the various existing and proposed storm sewer functions conducted by the District in conjunction with the Cities of Campbell, Monte Sereno, and the Town of Los Gatos; and WHEREAS, said draft report was available for public inspection and review for at least three (3) days prior to the public hearing; and WHEREAS, a public hearing was duly noticed and conducted by the Board of Directors on May 9, 2018; and NOW, THEREFORE, it is hereby resolved by the Board of Directors of the District that: 1. In order to conserve and protect the District s sanitary sewer system from the burden placed on it by the increasing flow of non-point source pollution and to assist the cities within the District in regulating and managing their respective storm sewer systems pursuant to their NPDES permit, it is necessary to continue to collect the previously established service charges (pursuant to Health and Safety Code Section 5471 et seq.) as provided in Schedule A attached hereto and incorporated herein by reference. 2. After considering the report entitled Report on the Stormwater Management Revenue Program, Fiscal Years , additional studies and financial data, as well as the testimony received at this public hearing, the Board hereby approves the report and incorporates it herein. 3. The facts and evidence presented establish that there is a reasonable relationship between the need for this service charge and the impacts for which it shall be used, and that there is a reasonable relationship between the use of the service charge and the properties, which are to be charged this service charge. These relationships and nexuses are described in both the original report prepared by the District Manager and Engineer on May 27, 1992, entitled Establishment of Storm Drainage Management Zones Within the West Valley Sanitation District and the report for this meeting entitled Report on the Stormwater Management Revenue Program, Fiscal Years , as well as other evidence received by the Board. 4. The amounts imposed pursuant to Schedule A are reasonable costs for the maintenance and operation of the storm drainage management program operated both by District personnel and the personnel of its member cities and the service charges imposed herein are anticipated to generate revenue which will not exceed the actual costs of the program. 5. The service fees charged herein shall be assessed on all properties within Zone A, Zone B, and Zone C as provided on Schedule A and shall be collected on the tax roll pursuant to Chapter 8 of the District s Ordinance Code. 2

110 6. Pursuant to Resolution Number and as part of the approved Clean Water Program Transition Plan, the District shall sunset its collection of the storm drainage service charge as approved herein at the end of Fiscal Year with final payment on July Any judicial action or proceeding to challenge, review, set aside, void or annul this resolution shall be brought within 120 days. PASSED AND ADOPTED at a regular meeting of the Board of Directors of the West Valley Sanitation District of Santa Clara County, on the 9 th day of May, 2018, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Directors Directors Directors Directors Chairperson of the Board of Directors, West Valley Sanitation District of Santa Clara County Attest: Secretary 3

111 REPORT ON THE STORMWATER MANAGEMENT REVENUE PROGRAM WITHIN THE WEST VALLEY SANITATION DISTRICT Fiscal Year Fiscal Year PARTICIPATING MUNICIPALITIES: CAMPBELL LOS GATOS MONTE SERENO May 9, 2018 PREPARED BY West Valley Clean Water Program

112 REPORT ON THE PROPOSED FY18 19 & FY19 20 STORMWATER MANAGEMENT REVENUE PROGRAM TABLE OF CONTENTS A. INTRODUCTION Reasons for Program Accomplishments in Fiscal B. FISCAL & FISCAL WORK PLAN AND COST ESTIMATE Major Goals Program Comparison Work Plan and Cost Estimates C. SERVICE CHARGE COMPUTATION RULES AND SUMMARY OF RATES Funding Source and Zones Computational Rules Service Charge Collection....6 D. ASSESSMENT SPREAD BY MUNICIPALITY Procedural Information Summary of Rates a. City of Campbell On file b. Town of Los Gatos.. On file c. City of Monte Sereno. On file ATTACHMENTS *1. Zone Map 2. Resolution of the Board of Directors of West Valley Sanitation District Approving Service Charges Pursuant to Health and Safety Code Section 5471 et seq. *3. City of Campbell Council Action, Council Agenda and Staff Report *4. Town of Los Gatos Council Action, Council Agenda and Staff Report *5. City of Monte Sereno Council Action, Council Agenda and Staff Report *6. Assessment by Parcels *On file at the District office.

113 REPORT ON THE PROPOSED FY18 19 & FY19 20 STORMWATER MANAGEMENT REVENUE PROGRAM A. INTRODUCTION 1. Reasons for the Program Under the 1987 amendments to the Federal Clean Water Act, the United States Environmental Protection Agency (EPA) has promulgated regulations requiring municipalities to obtain a National Pollutant Discharge Elimination System (NPDES) permit to discharge storm sewers to receiving waters. The EPA regulations have set forth an extensive and exhaustive course of action, via California State and Regional Water Quality Control Boards, for agencies to maintain and monitor their storm sewer systems, including abatement of activities, which causes pollution transport via an MS4 (municipal separate storm sewer system). The City of Campbell, the City of Monte Sereno, and the Town of Los Gatos, along with ten other cities, the County of Santa Clara, and the Santa Clara Valley Water District obtained its first joint NPDES permit on June 20, 1990, which requires regulation and management of their respective storm sewer systems in accordance with guidelines developed by the Santa Clara Valley Urban Runoff Pollution Prevention Program or SCVURPPP (formerly called Santa Clara Valley Non Point Source Control Program) and the Bay Area Storm Water Management Agencies Association (BASMAA). On October 14, 2009, the San Francisco Bay Regional Water Quality Control Board approved a five year Bay Area region wide Municipal Regional Permit (MRP) that includes 76 Bay Area municipalities, counties and flood control districts. The renewal of the Bay Area MRP was adopted on November 19, 2015, for a subsequent five year permit period. 2. Accomplishments in Fiscal The major accomplishments of the program were: (a) Continued contract service for storm drain O&M with West Valley Sanitation District, which inspected and cleaned 100% of each municipality s catch basins with Trash Capture Devices, in addition to conducting regular inspection and cleaning program of each municipality s storm drainage system and verification of storm drainage catch basin no dumping, flows to Bay markings for required standard of 80% in field legible. (b) Fulfilled storm water management plan tasks required under the joint NPDES permit, including required updates to the Enforcement Response Plan. (c) Continued joint West Valley Clean Water Program (WVCWP), which includes the City of Saratoga. The WVCWP provides an outreach program, as well as administrative support and technical guidance to member agency staff. (d) Renewed contract and partnership with the Santa Clara County Fire District s Hazardous Materials Unit for industrial/ commercial inspection program. (e) Continued support for implementation and tracking of new development clean water provisions; includes design requirements for utilizing Low 1

114 REPORT ON THE PROPOSED FY18 19 & FY19 20 STORMWATER MANAGEMENT REVENUE PROGRAM Impact Development (LID) stormwater treatment systems, and ongoing O&M Verification program for installed stormwater treatment devices (both on private property and publicly owned facilities). (f) Implemented construction site control program (for stormwater and MS4 system protection), including inspection of newly constructed stormwater treatment facilities. (g) Provided support to county wide program for media campaign and outreach collateral. Provide local support and implementation for hosting clean up events, school presentation and outreach events. (h) Implemented (Long Term) Trash Load Reduction Plans and continued conducting Visual Trash Assessment protocols. (i) Provided support to county wide workshops and local staff training efforts, as required by MRP, to cover stormwater best management practices, resources and enforcement response protocols. (j) Completed and adopted required Green Infrastructure Framework. Coordinate with SCVURPPP for submittal of document as required by MRP. (k) Coordinate with SCVURPPP (county wide program) for completion of grant funded regional projects, submittal of bay area wide and county wide compliance documents. B. FISCAL & FISCAL WORK PLAN AND COST ESTIMATE 1. Major Goals The major goals for the fiscal & fiscal programs are: (a) Continue program for inspecting and cleaning of each municipality s storm drainage system, including annual inspection and cleaning of catch basin locations with trash capture devices, and tracking inventory of catch basin storm drain markings with public outreach message no dumping, flows to bay. Continue Stormwater inspection program at industrial and commercial facilities to meet newer MRP requirements. Includes joint inspection program with the SCC HazMat Unit. (b) Continue implementation of inspection programs at commercial/ retail sites (>3,000sf of pervious pavement and/or >10,000sf of impervious surface) to track inventory, ongoing O&M and trash loading impacts. (c) Continue the administrative functions and perform planning and reporting activities of the program, including implementation and tracking of MRP required programs and Plans 2

115 REPORT ON THE PROPOSED FY18 19 & FY19 20 STORMWATER MANAGEMENT REVENUE PROGRAM (d) Continue implementation of stormwater public outreach and education program through West Valley Clean Water Program, including expanded outreach requirements for Green Infrastructure. (e) Continue implementation of IDDE (Illicit Discharge Detection and Elimination) Response Program and enforcement response protocols. (f) Continue implementation of new development requirements for LID and construction site control provisions, including stormwater specific construction inspections at hillside sites. (g) Continue municipal operations best management practices (BMPs), including requirements for hired contractors and service vendors to also employ BMPs. Includes providing appropriate training for all staff levels and departments. (h) Continue, during construction and ongoing O&M verification of LID and structural treatment systems (i.e. bio retention areas, trash capture devices) and LID site design features (i.e. pervious pavement and storm drain markings) at both private development sites and public facilities. Includes training on updated Enforcement Response Plan (ERP}. (i) Continue MRP required visual representation of data and analysis, data collection and management for documentation, and reporting requirements. (j) Continue Trash Control Measures and Visual Assessment Program to accommodate newer MRP implementation requirements for verification of trash/litter reduction. (k) Continue development of Green Infrastructure Plan to address MRP specified Pollutants of Concern (POCs). Includes development of training and outreach materials and updates to related ordinances, other strategic plans and standard operating procedures (SOPs). (l) Continue development of local Stormwater Resource Control Plan, as required by updated State Water Code for eligibility to receive state funds from state funded bonds and grants. (m) Provide support for Reasonable Assurance Analysis (RAA) to demonstrate how Green Infrastructure and other actions implemented will achieve regionwide PCB and mercury load reduction targets. (n) Provide support for Receiving Water Monitoring Framework and Plan for Monitoring Trash Load Reductions within the receiving water(s), which includes development of a plan and begin implementation of local monitoring efforts (in creeks). 2. Program Comparison Summary of the proposed program revenues in comparison with the previous year s program revenue is: 3

116 REPORT ON THE PROPOSED FY18 19 & FY19 20 STORMWATER MANAGEMENT REVENUE PROGRAM Current Proposed 1 Estimated 2 Fee Municipality Increase Campbell $394,110 $394,357 $394,500 0% Los Gatos $353,071 $353,227 $353,500 0% Monte Sereno $21,528 $21,528 $21, 500 0% 1 Revenue projection as of February 23, Change in revenue reflects updates related to periodic audit of fees and/or changes in parcel information. 2Revenue estimation as of February 23, The actual amount will be available by May Work Plans and Cost Estimates The fiscal and fiscal cost estimates by each municipality are included in the attachments and detailed work plans are on file with the West Valley Clean Water Program. C. SERVICE CHARGE COMPUTATION RULES AND SUMMARY OF RATES 1. Funding Source and Zones The program will be funded from storm drainage service charges based upon level of services identified by each municipality. Three separate zones and accounts have been established. The service charges collected in each zone will be reimbursed directly to the respective municipality. The three zones are referred to as Zone A City of Campbell, Zone B City of Monte Sereno, and Zone C Town of Los Gatos. The three zones are delineated on a map entitled Storm Drainage Management Zones within the West Valley Sanitation District, dated May 27, 1992, and amended April 2013 to reflect City of Campbell annexation of properties. 2. Computational Rules Total program costs for each storm drainage zone shall be apportioned to all parcels within that zone in accordance with benefits received. The benefit to each parcel has been determined to be directly proportional to the product of the land area and a coefficient of storm water runoff for that parcel. The Computational Rules are the same for each municipality within the District. However, they are applied independently to each municipality for the purpose of spreading the municipality s total storm drain budget. Parcels are divided into the following Land Use Categories within the corresponding Runoff Coefficients as shown below: RES Single Family Residential 4 REM Multi Family Residential 6 PD Planned Development 6 4

117 REPORT ON THE PROPOSED FY18 19 & FY19 20 STORMWATER MANAGEMENT REVENUE PROGRAM PUB Quasi Public Facilities 6 OFF Office 8 MFG Manufacturing 8 COM Commercial 9 UIM Unimproved None GOV Governmental None All parcels Except Single Family Residential are charged in proportion to their land size in square feet and factored by the runoff coefficient for their category of land use. For example, since the runoff coefficient for Multi Family Residential is 6 and for Manufacturing is 8, a multi family residential parcel would have a fee that is 6/8ths that of the manufacturing parcel that is the same size. Parcel size is rounded to the nearest 1,000 square feet. All parcels are taken to be at least 1,000 square feet. The proportion of the total amount that is applied to the Single Family category is the ratio of the total of the municipality s single family square footage factored by its runoff coefficient to the total city wide square footage with each parcel factored by its corresponding runoff coefficient. For this computation, the single family parcels are capped at a maximum of 10,000 square feet. Single Family Parcels are then all set at the same flat fee. The area for condominium and townhouse developments shall be determined by assigning to each unit in the development an area equal to that unit s proportionate share of the total land area in the development. 3. Service Charge Collection The storm drainage service charges will be collected on the tax roll with the West Valley Sanitation District s sewer service charges. The current county tax roll of the District titled WV Sewer Sani/Storm will be used. The charges collected by the County with the December 10 taxes are typically received by the District in January, and the charges collected with the April 10 taxes are typically received by the District in June. Revenue collected by the District, less County imposed fees and District processing fees, is distributed to the municipalities within 30 days of receipts. The municipalities remit semi annual assessments to the District on expenditures basis for West Valley Clean Water Program portion of approved budgets. Expenditures made in excess/surplus of funds received from the municipalities are reconciled annually. Pursuant to Resolution adopted by the West Valley Sanitation District in May 2017, the District s final collection of the storm drainage service charge on behalf of the municipalities on the tax roll will be Fiscal , with the final distribution of storm drainage service charges in July D. ASSESSMENT SPREAD BY MUNICIPALITY 1. Procedural Information 5

118 REPORT ON THE PROPOSED FY18 19 & FY19 20 STORMWATER MANAGEMENT REVENUE PROGRAM Since each municipality has a unique work plan and land use, the total assessment and land use category assessment is different. Pursuant to the service charge assessment rules, the assessments by land use category for each municipality are summarized on the following three pages. The assessments by parcel number, owner name/address, land use, and size are on file at the District office. The data information for the parcels has been extracted from the most recent copy of the Assessor Master File Summary of Rates A summary of rates for the program as requested by each municipality are on the following pages. 2 Assessor Master File pull is typically between February and March each year. 6

119 Schedule A FY & FY Preliminary Revenue Summary County Use CAMPBELL LOS GATOS MONTE SERENO TOTAL Code Use Code Description # of Parcels Acres Storm Fee # of Parcels Acres Storm Fee # of Parcels Acres Storm Fee # of Parcels Acres Storm Fee 01 Single Family 7,643 1, $149, ,255 3, $148, , $20, ,117 5, $317, Two Family $7, $9, $ $17, Three and Four Family $13, $3, $ $17, Five or More Family $34, $18, $ $53, Condominium or Townhouse 2, $28, , $44, $0.00 4, $73, Fraternity, Sorority, Boarding, Rooming House $ $ $ $ Lumber and Other Building Materials Dealers $ $ $ $ Public Warehousing $5, $1, $ $7, Wholesaling With Stock (With Warehousing) $1, $ $ $1, Research & Development Branches of Manufacturing Firms $9, $4, $ $13, General Industrial Non Mfg. or Combination of Mfg. and Non Mfg $23, $2, $ $25, Yards for Equip. and Supplies of Contractors, Public Utilities, Govt $3, $ $ $3, Miscellaneous Industrial Non Mfg. and Heavy Commercial Uses $4, $ $ $4, Food and Kindred Products, Wineries $ $ $ $ General Manufacturing (Mixed and Miscellaneous Uses) $ $ $ $ Lumber and Wood Products Excluding Furniture $ $ $ $ Furniture and Fixtures $ $ $ $ Fabricated Metal Products $ $ $ $ Non Electrical Machinery and Electronics $ $ $ $ Instruments $ $ $ $ Industrial Condominium $1, $ $ $1, Streets: Limited Access $ $ $ $ Streets: Local $ $ $ $ Railroad Transportation $ $ $ $ Utilities and Communications $1, $5, $ $7, Bus and Truck Transportation $ $ $ $ Community (Junior Department Store or Large Variety) $7, $ $ $7, Neighborhood (Supermarket) $11, $11, $ $22, Specialty Shopping Centers $ $1, $ $1, Major Business Districts $ $ $ $ Local Business Districts $ $ $ $ Retail Use $35, $23, $ $59, Office Uses $31, $35, $ $67, Parking Garage $ $ $ $ Service Stations $1, $1, $ $3, Childcare Facilities, Pre schools, Adult Daycare Centers $1, $1, $ $3, Residential Care Facilities (Other than Skilled Nursing) $1, $ $ $1, Recreational Facilities: Athletic Clubs, Country Clubs, Card Rooms $ $4, $ $4, Social Clubs, Fraternal Orders, Community Centers $ $ $ $ Mortuaries $ $ $ $ Vacant Urban $3, $2, $ $6, Other Schools $ $8, $ $8, Major Hospitals, Other Hospital Owned Buildings: Medical $ $2, $ $2, Public Buildings $3, $2, $ $6, Convalescent Hospitals, Skilled Nursing Facilities $ $4, $ $5, Churches $8, $8, $ $18, Neighborhood Pool Clubs $ $ $ $ Other Public Open Space Uses $ $ $ $ Commercial Open Space Uses, Public Parking Lots $ $ $ $ Non profit Open Space Uses $ $ $ $ Agriculture: Orchard $ $ $ $ Agriculture: Pasture, Grazing and Range Land $ $ $ $ Agriculture: Intensive, Livestock Dairy, Other Animals $ $ $ $ Reservoirs, Water Supply and Flood Control Lands $ $ $ $ Forest and Brush Lands, Scenic $ $ $ $ XX Use Code Not Provided by County $ $2, $ $3, Subtotal 12,096 2, $394, ,453 4, $353, , $21, ,775 7, $769,112.15

120 Agenda Payments for Board Approval Board Date: 05/09/18 Agenda Item No. 13 Check No Pay Date Vendor Payment Description Payment Amount /13/2018 County of Santa Clara County Assessor Maps 1, /20/2018 Balch Petroleum Fuel System Preventive Maint /20/2018 Brown & Caldwell Quito Basin 3 & 4 Sewer Rehab Proj 5, /20/2018 Brown & Caldwell University ACP Trunk Sewer Rehab 4, /20/2018 Bay Area News Group Public Notices 1, /20/2018 Verizon Wireless WVSD Cell Phone Service /20/2018 Cintas Corporation Protective Clothing 1, /20/2018 Home Depot Credit Services Hardware and Supplies /20/2018 City of Campbell WVCWP Facilities Lease 1, /20/2018 City of San Jose FY th Qtr Capital Billing 3,621, /20/2018 City of San Jose FY th Qtr Ops & Maint. Billing 2,407, /20/2018 City of San Jose FY nd Half SRFL Payment 188, /20/2018 Civil Engineering Associates Inc. Debris Pit Replacement Project 3, /20/2018 Fuel Serv Fuel System Nozzle 4, /20/2018 Winchester Auto Auto Parts and Supplies /20/2018 Give Something Back Workplace Office Supplies /20/2018 Vineyard Unlimited WVCWP Office Supplies /20/2018 Logan & Powell LLP Formation of JPA for WVCWP 1, /20/2018 Lyon Management Group Payment Refund 3, /20/2018 Meyers, Nave, Riback, Silver & Wilson Legal and Litigation Services 8, /20/2018 XL Vehicle Graphics & Digital Prints Clothing and Gear /20/2018 One Workplace L. Ferrari, LLC WVCWP Office Furniture 3, /20/2018 PG&E Office Utilities /20/2018 PG&E Office Utilities 1, /20/2018 Pacific Underground Construction Sanitary Sewer Repair Contract 4, /20/2018 Phuong Vu Expense Reimbursement /20/2018 Slingshot Connections, LLC WVCWP Temporary Staffing 2, /20/2018 Stepford, Inc. Computer Equipment and Software 10, /20/2018 Ted Cooper Industries Gardening Services /20/2018 Theodore S. Cribari Jr. Sewer Service Refund /20/2018 U.S. Bank Equipment Finance Copier Expense /20/2018 TPx Communications Office Telephones /20/2018 V & A Consulting Engineers Flow Monitoring FY , /20/2018 Guadalupe Recycling & Disposal Trash Disposal /20/2018 WECO Industries LLC CCTV Equipment 1, WVSD GL - Board Approval - Payment Wednesday, May 2, 2018 Page 1 of 3