PUBLIC HEARING TO CONSIDER SANITARY SEWER SERVICES RATE
INCREASES FOR 5 YEARS, FISCAL YEARS 2015-2021
PUBLIC HEARING June 16, 2015
BURBANK SANITARY DISTRICT
1
BURBANK SANITARY DISTRICT
• Burbank Sanitary District (BSD) was formed in 1940
• The District serves an unincorporated pocket within City of San Jose mainly from Forest Avenue south to Parkmoor Avenue and from Bascom Avenue east to Richmond Avenue
• BSD serves approximately 1,000 properties with a population of 4,926
• The flow is conveyed to the San Jose/Santa Clara Water Pollution Control Plant (approximately 10 miles away)
2
BURBANK SANITARY DISTRICT (BSD) SERVICES
• Garbage services collection
• Street sweeping services
• Sanitary sewer collection and treatment services
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SANITARY SERVICES
• Respond to residents’ inquiries and assist in locating cleanouts, backflow devices, and laterals
• Respond to sanitary sewer overflows/stoppages
• Maintain & repair mains and lower laterals
• Implement District capital improvement projects • Coordinate with the State Board and Federal Regulatory
Agencies • Work with City of San Jose for District’s use of the San
Jose/Santa Clara Water Pollution Control Plant
4
San Jose-Santa Clara Treatment Improvements
• Plant was constructed in the 1956, upgraded in 1964 and 1979 • Plant is undertaking a major 30-year Rehabilitation Program • Proposed Treatment Plant costs are estimated at $2.1 billion
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Tributary Discharger % Cost Share of $1,324,640,631
City of San Jose 67.97% $900,380,034
City of Santa Clara 13.81% $182,993,139
City of Milpitas 6.93% $91,732,407
West Valley Sanitation District 6.34% $83,942,060
Cupertino Sanitary District 4.13% $54,754,366
County Sanitation District 2-3 0.58% $7,682,188
Burbank Sanitary District 0.24% $3,156,438
COST BREAKDOWN OF 10-YEAR CAPITAL IMPROVEMENTS
FOR THE TREATMENT PLANT - FY 2016 THROUGH 2025
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Discharge improvements to the Bay Digesters and bio-solid disposal
Improvements to water and air quality
Mechanical/Electrical equipment improvements 7
9
DISTRICT CIP CHRONOLOGY
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ITEM Date Completed Condition Assessment completed initial 10 year CIP strategy
July 10, 2014
First Public Outreach presentation
November 10, 2014
Zone A additional investigation - Easement letters sent
January 9, 2015
- Field inspection
February 18, 2015
- Mapping
March 15, 2015
- Preliminary engineering
April 21, 2015
- Present CIP strategy
June 1, 2015
DISTRICT CAPITAL PROJECTS There are 3 types of rehabilitations: Zone A, Zone B, and Zone C
• Zone A (located between Scott Street and I-280) will require all sewer mains to be fully replaced. Most sewer mains are located in the backyards between two properties; therefore, they are difficult to replace. District is considering pipe busting to rehabilitate.
• Zone B is all other portions of the District north of Zone A and will require spot repairs. Sewer mains in Zone B are located in the street.
• Zone C is the potential commercial redevelopment (formally part of Zone A) that will require full sewer replacement in the backyards/alley.
ZONES A & C REHABILITATION STRATEGY
• Construction method: Pipe Bursting • Cost: $1,400,000 • Construction Implementation Strategy:
– In third year, one construction package with financing or – Staggered 3rd, 5th and 7th year, pay as you go
ZONE B REHABILITATION
• Construction methods: – Total spots to be repaired: 125
– 581 feet of pipe replacement on Cleveland Avenue
• Total cost: $1,876,000
ALTERNATIVE 1 10 YEAR CIP IMPLEMENTATION
Third Year, One construction Package for Zones A and C and finance $1,000,000
YEAR ZONE LOCATON DESCRIPTION COST
1 B Arleta Ave, Irving Ave 20 spot repairs $246,000
2 B Leland Avenue 16 spot repairs $253,000
3 A/C All Streets, includes Scott St Pipe Bursting $1,400,000
4 B Boston Avenue, Bailey Avenue 15 Spot repairs $246,000
5 B Cleveland Avenue 4 Spot repairs + Replacement
$285,000
6 B Bailey Avenue, Laswell Avenue, Richmond Avenue, Brooklyn 31 Spot repairs $330,000
7 B Rutland Avenue, Vaughn Avenue 12 Spot repairs $174,000
8 B Bascom Avenue, Wabash Avenue, Leigh Avenue 11 Spot repairs $137,000
9 B Cecil Avenue, Clifton Avenue , Raymond Avenue 9 Spot repairs $141,000
10 B Forest Avenue, Arleta Avenue 3 Spot repairs $51,000 Total Cost = $3,276,000
ALTERNATIVE 2 10 YEAR CIP IMPLEMENTATION
Zones A and C divided into 3 construction packages 3rd, 5th and 7th year.
YEAR ZONE LOCATON DESCRIPTION COST 1 B Arleta Ave, Irving Ave 20 spot repairs $246,000
2 B Leland Ave 27 spot repairs $253,000
3 A Easement between Laswell Ave and Arleta Ave, portion of easement between Arleta Ave and Raymond Ave, Scott St
1/3 Pipe Bursting $450,000
4 B Boston Ave, Bailey Ave 15 spot repairs $246,000
5 A Portion of easement between Arleta Ave and Raymond Ave, portion of easement between Raymond Ave and Irving Ave
1/3 Pipe Bursting $450,000
6 B Cleveland Ave, Brooklyn Ave 15 Spot repairs + Replacement
$449,000
7 A/C Portion of easement between Raymond Ave and Irving Ave, easement between Bascom Ave and Laswell Ave
1/3 Pipe Bursting $500,000
8 B Bailey Ave, Laswell Ave, Richmond Ave 20 Spot repairs $166,000
9 B Rutland Ave, Vaughn Ave, Bascom Ave, Wabash Ave, Leigh Ave 23 Spot repairs $301,000
10 B Cecil Ave, Clifton Ave, Raymond Ave, Forest Ave, Arleta Ave 12 Spot repairs $192,000
Total Cost = $3,276,000
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17
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$259,549.00 $270,000.00 $280,800.00 $292,032.00 $303,713.00
$246,000.00 $430,000.00 $450,000.00
$246,000.00 $400,161.00
$538,026.00
$547,697.00
$760,593.00
$552,416.00
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
PROJECTED EXPENSES FOR BSD
FY2014-15 FY 2015 - 16 FY2016 - 17 FY2017 - 18 FY2018 - 19
SJ/SC COST BSD CIP BSD O&M
ACTUAL COST
PROJECTED COST AT
END OF THIS FISCAL YEAR
FUTURE THREE YEAR PROJECTED COSTS
19
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Projected Revenue $721,700 Reserve Fund $259,333 Total Funds Required To Balance Expenses $981,033
Expenses for District’s Operations FY 2015 - 2016
Total Projected Expenses - $981,033
Revenue for District’s Operations FY 2015 - 2016
District Operation and Maintenance,
$374,005 , 38.12%
Treatment Plant Operation and Maintenance,
$212,159 , 21.63%
Treatment Plant Capital Outlay, $95,769 , 9.76%
District Capital Construction,
$246,000 , 25.08%
Joint Use (CSJ Payment),
$20,000 , 2.04%
Treatment Plant O & M Equip Repl, $1,000 ,
0.10%
Debt Related Expenses,
$32,100 , 3.27%
Permits, Fees & Misc, $3,000
, 0.31% Sewer Service
Charges, $715,700 ,
72.95%
Interest Earning,
$3,000 , 0.31%
Transfer Funds from Reserve to
Balance Expenses, $259,333 ,
26.43%
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$516
,067
$531
,490
$549
,744
$576
,583
$622
,232
1
$303
,345
$245
,377
$270
,472
$315
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$241
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$302
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$254
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$245
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$223
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$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
LAST FIVE YEAR COMPARISION ACTUAL REVENUES, EXPENSES AND BUDGET
Approved Budget
District CIP
SJ/SC O&M & CIP
BSD O&M
Actual Tax Roll Revenue
FY2010 - 11 FY 2011 - 12 FY2012 - 13 FY2013 - 14 FY2014 - 15 FY14-15 Estimated thru June 30, 2015
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Proposed Percentage Increase for FY 2015-16
8% 10% 8% 5% 15% 0% 4%
Santa Clara WVSD CuSD CSD 2-3 Burbank San Jose MilpitasFY 2009-10 $195.60 $279.48 $288.00 $286.00 $354.91 $334.00 $334.00FY 2010-11 $232.80 $294.48 $288.00 $315.00 $369.00 $366.00 $366.00FY 2011-12 $277.03 $311.88 $330.00 $343.32 $383.76 $372.00 $390.48FY 2012-13 $350.40 $330.60 $330.00 $429.12 $399.23 $394.32 $425.64FY 2013-14 $396.00 $363.72 $363.00 $493.49 $415.20 $405.96 $455.52FY 2014-15 $415.80 $400.08 $381.15 $542.84 $456.72 $405.96 $521.64FY 2015-16 PROPOSED $449.06 $440.09 $411.64 $569.98 $525.23 $405.96 $542.51
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
Annu
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ate
Char
ges
San Jose-Santa Clara Treatment Plant Agency Single Family Residential Rates
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RATE INCREASE NEEDED TO . . . • Continue to pay City of San Jose for the Treatment Plant cost
• Maintain current level of District operations and maintenance
• Increase BSD capital project program to be in compliance with
Sewer System Management Plan (SSMP).
• Repair infrastructure, as over 85% of the District’s sanitary sewer pipes and laterals were constructed in the 1950’s, and most pipes are beyond the expected useful life.
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Type of Services Current Rates Proposed Rates for FY 2015-2016
Residential Per Unit (Single Family/Townhouse/Condo)
$456.72/Year $38.06/Month
$525.24/Year $43.77/Month
Residential Multiple Per Unit (Duplex/Apartment)
$259.68/Year $21.64/Month
$298.68/Year $24.89/Month
Commercial Properties $3.15/HCF $327.36/Year Minimum
$3.62/HCF $376.44/Year Minimum
Restaurant $8.39/HCF $1,368.36/Year Minimum
$9.65/HCF $1,573.56/Year Minimum
Garage $3.66/HCF $1,298.64/Year Minimum
$4.21/HCF $1,493.40/Year Minimum
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Current District Rates Versus Proposed Rates
• HCF - Hundred Cubic Feet
QUESTIONS AND CONTACT INFORMATION
Questions or further suggestions please write to the District office at: 20863 Stevens Creek Blvd
Cupertino, CA 95014 Or please feel free to call us at or visit:
408-253-7863 http://www.burbanksanitary.org/
BOARD OF DIRECTORS STAFF Michelle Kaelker-Boor – President Richard K. Tanaka Keri Russo – Secretary District Manager - Engineer Rebecca Yoder – Director (Mark Thomas & Company, Inc.) Ken Colson – Director Rene Prupes – Director