FY18-19 and 19-20 RECOMMENDED OPERATING AND CIP BUDGET - FIN

Wastewater Operations (continued)

FY 2018-19 and 2019-20 Activity Goals • Review potential wastewater rate adjustment based upon 2017 updated Sanitary Sewer Master Plan (Maintaining Fiscal Responsibility) • Hydro cleaning 600,000 ft. of the wastewater collection system using frequencies and priorities established by the asset management program (Infrastructure, Enhancing Public Safety, Protecting the Environment) • CCTV 300,000 ft. of the wastewater collection system using frequencies and priorities established by the asset management program (Enhancing Public Safety, Infrastructure, Protecting the Environment) • Begin Infiltration and Inflow (I&I) management plan to comply with wastewater discharge permit requirements (Enhancing Public Safety, Infrastructure, Protecting the Environment) • Complete all USA locates accurately and within 48 hours (Enhancing Public Safety) Financial Comments The 2017 Sanitary Sewer Master Plan outlined capital improvements necessary to maintain the City’s water system. Many of these proposed improvements were not included in the prior rate study or have seen high increases in the estimated costs for improvements, which requires review. Fleet replacement costs in the Wastewater Operations Division have been comprehensively updated resulting in an increase to the annual contribution to the Vehicle Replacement Fund. Funding for Morgan Hill’s portion of the operating costs of the South County Regional Wastewater Authority is included within the Division’s budget.

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