City of Morgan Hill Fiscal Years 2020- 2022 Recommended Operating and CIP Budgets

Wastewater Operations (continued)

FY 2020-21 and 2021-22 Activity Goals  Complete the Joint Trunk Line Inspection and Condition Assessment Project (Maintaining Infrastructure; Enhancing Public Safety; Protecting the Environment)  Continue participation in the Santa Clara County Recycled Water Master Plan (Advancing Regional Initiatives)  Complete wastewater collection system asset inventory and condition assessment project (Maintaining Infrastructure; Enhancing Public Safety; Protecting the Environment)  Improve collection system monitoring by installing Smart Cover flow measurement equipment (Maintaining Infrastructure)  Hydro clean 600,000 ft. of the wastewater collection system using frequencies and priorities established by the asset management program (Maintaining Infrastructure; Enhancing Public Safety; Protecting the Environment)  Inspect 300,000 ft. of the wastewater collection system completed using frequencies and priorities established by the asset management program (Maintaining Infrastructure; Enhancing Public Safety; Protecting the Environment)  Continue Infiltration and Inflow (I&I) management plan to comply with wastewater discharge permit requirements (Maintaining Infrastructure; Enhancing Public Safety; Protecting the Environment)  Continue to 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 wastewater system. Many of these proposed improvements were not included in the prior rate study and in 2019 a wastewater rate study was conducted to align rates with the cost of improvements identified in the Master Plan. 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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