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Council adopts updated sanitary sewer master plan and lowers conveyance fees for development

City of Santa Clara City Council / Santa Clara Stadium Authority / Santa Clara Housing Authority (concurrent meeting) · December 10, 2025

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Summary

After a staff presentation and brief public hearing with no speakers, the council unanimously adopted the 2025 Sanitary Sewer Master Plan update and approved a revised conveyance-fee schedule (residential now set per square foot in line with AB1602; nonresidential rates decreased), reflecting updated hydraulic modeling and an existing fund balance.

Santa Clara — The council unanimously adopted the Sanitary Sewer Master Plan Update (2025) and a revised sanitary sewer conveyance fee nexus study that reduces development impact rates to align with current modeling and AB1602 requirements.

What changed: The update expanded the system hydraulic model and calibrated it with flow-meter measurements, then projected general-plan buildout needs through about 2035. Staff identified roughly 13 capital projects (escalated cost estimate approx. $150 million) needed to accommodate projected growth. Accounting for an existing conveyance fund balance (approximately $50 million), updated rate calculations reduce the nonresidential conveyance fee from about $8.60 to $6.34 per gallon per day and convert residential charging to a square-foot basis (staff estimated per-square-foot rates yielding decreases ranging roughly 28–78% depending on housing type). Staff and the city manager called the reduction a best-practice alignment with development expectations.

Why it matters: Conveyance fees are collected from new development to fund sewer-capacity upgrades so existing ratepayers are not charged to serve new growth. The update recalibrates the city’s approach to reflect current system modeling, existing funds, and legal requirements.

Public hearing and vote: The public hearing was opened and closed with no speakers; council adopted the master plan update and fee amendments unanimously. Staff said the plan will be revisited periodically to reflect actual development timing and capital needs.