Sunnyvale Hikes Utility Rates

The Sunnyvale City Council approved an increase in utility rates and assessed its downtown parking district at its June 17 city council meeting.

Rising water costs and infrastructure improvements are largely responsible for the Sunnyvale City Council increasing utility rates.

By a unanimous vote, the council upped garbage, water and wastewater rates at its most recent meeting June 17.

Stephen Napier, the city’s utility billing manager, told the council that the city does rate studies every five years. Purchased water accounts for approximately 60% of the operation cost for the water utility, he added.

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The increased rates differ slightly from the projected rates, according to the presentation.

Originally, the estimates had water rates increasing by 4.5% and wastewater by 9%, but the increases for those utilities ended up coming in at 6% and 7% respectively. The 4% increase to the garbage collection rate matched the estimate.

Capital projects, such as more than $1 billion worth of construction at the water pollution control plant and $20 million for automated meters, contributed heavily to rising costs, Napier said.

City Manager Tim Kirby told the council that the automated meters will actually save money over a long arc because they reduce water waste.

“If anybody has had a leak before, it can be as simple as a drip, drip, drip, but if it happens 24 hours a day for months at a time, it can add up very quickly,” Kirby said.

Vice Mayor Linda Sell said she liked city employees doing their “due diligence” by providing comparisons to neighboring cities, as it acts like a “sanity check” to ensure the city’s rates aren’t too high.

Although slightly higher this year, Sunnyvale’s utility rates are still slightly below average to average, according to the presentation. The city used some of its reserves to help stabilize rates.

Still, some residents felt that the constant increases were a bridge too far.

Michael Flores said he has been living in Sunnyvale for 50 years and the rates constantly — and at a pace greater than inflation.

“When it rains, we have to raise the rates because there is too much water. When there is a drought, we have to raise the rates because there is a drought. When the water is normal, we got to raise the rates because the water is normal,” he said. “So, it just seems the rates just keep going up no matter what. I would like to see them stabilize somewhere.”

In order to block the rates, 15,700 residents would have needed to submit complaints to the city. Only 99 such complaints came in prior to the vote.

State law prevents the city from subsidizing rates on the backs of different categories of ratepayers. A partnership with Sunnyvale Community Services allows residents to receive a one-month credit on a utility bill if they qualify.

While the council was sympathetic to hardship the rate increases places on residents, members also acknowledged that their hands are essentially tied.

“I agree it is painful for residents to pay this amount of money every year, but at the same time, it is the aging infrastructure,” Sunnyvale City Council Member Murali Srinivasan said.

Downtown Parking District Gets Annual Assessment

The council also levied fees for the downtown parking district.

Chip Taylor, public works director, said the city is increasing the assessment by the consumer price index to pay for basic maintenance such as striping and overlays.

Council Member Alysa Cisneros said the assessment allows the city to continue to look at new ways to improve the downtown, such as the installation of electric vehicle fast chargers.

“There is a lot of demand for our parking downtown, and so all of the space is very valuable,” she said.

Mayor Larry Klein said the assessment allows the downtown to continue to be a “robust and vibrant destination.”

The assessment passed unanimously.

The council approved the following spending in one motion via the consent calendar:

A $120,209 modification to the temporary hotel expansion program for street outreach and essential homeless services. Total expenditure is now $1.09 million.
A $180,000 increase to an agreement with Allen, Glaessner, Hazelwood & Werth for legal services. Total is now $355,000.
A $100,000 increase to a contract with Sloan, Sakai, Yeung & Wong for legal services. Total contract is now $400,000.

The council meets again at 7 p.m. Tuesday, July 1 in the Sunnyvale City Council Chambers at City Hall, 456 W. Olive Ave. in Sunnyvale.

To submit public comments ahead of the meeting, visit http://Sunnyvale.ca.gov/PublicComments; Meeting online link: https://sunnyvale-ca-gov.zoom.us/j/96111580540; meeting call-in telephone number: 833-548-0276, meeting ID: 961 1158 0540

Contact David Alexander at d.todd.alexander@gmail.com