Sacramento Utilities Rate Advisory Commission Meeting - May 12, 2010

The Utilities Rate Advisory Commission met at New City Hall, 915 I Street - Council Chambers, on May 12, 2010, from 5:03 p.m. to 6:29 p.m. Commissioners present were Chair Steven Archibald, Vice Chair Tess Kretschmann, Karen McBride, Melvin Johnson, Douglas Brown (arrived at 5:10 p.m.), and Carolyn Veal-Hunter (arrived at 5:10 p.m., left at 5:50 p.m., and returned at 6:25 p.m.). Dr. Ernest Lehr was absent. The Commission approved prior meeting minutes, received a water conservation presentation, and voted to support staff's recommended rate restructuring for Loose-in-the-Street garden refuse collection for inclusion in the Proposition 218 notification.

Consent Calendar

• Approved the minutes for the prior meeting. The written minutes identify this item as 'Approval of Minutes for February 3, 2009,' while the meeting transcript refers to 'approval of the minutes from our April 21st meeting.' This discrepancy is noted. Motion by Melvin Johnson, seconded by Karen McBride; all present voted in favor.

Public Comments & Testimony

• Ellen Robinson, a property owner with a single-family home remodeled into a triplex, objected to paying three times the street sweeping charge and double the green waste charge for the same parcel, and to requirements that would force her to have multiple containers. Staff responded that the proposed green waste restructuring would set a minimum service level of one, and that they would follow up on street sweeping.

Discussion Items

Water Conservation Workshop

• Terrance Davis, Program Manager, presented an overview of the Water Conservation section. It has 7 full-time employees responsible for Best Management Practices (BMP) compliance, water waste complaints, ordinance enforcement, customer outreach, and education.
• The City is a signatory to the California Urban Water Conservation Council MOU and implements 14 BMPs, divided into foundational and programmatic categories. Staff noted that budget and staffing limitations have prevented meeting some BMP targets.
• Peak-season water waste service requests (May through September) increased 133% over the last two years. Two additional staff were added in fall 2009, and two additional seasonal water-waste inspectors will be added in June 2010.
• Outdoor conservation ordinance revisions in 2009 included weekend watering flexibility during the wet season, an exemption for drip irrigation systems, and changing the prohibited watering window from 10 a.m. - 6 p.m. to 10 a.m. - 7 p.m.
• Outreach and education efforts include the RWA Blue Thumb program, Spare Sac water alerts, approximately 12 conservation workshops, a volunteer ambassadors program, and a water-efficient landscape garden at the Glenn Ellen facility expected to be completed in the fall.
• Next steps include automated meter reading infrastructure (AMI), future leak detection options, council direction on further ordinance revisions in August 2010, and a possible fall update to the Commission.
• Commissioner Kretschmann asked about moving from individual BMP compliance to an overall water reduction approach and about cost-effectiveness of programs such as toilet rebates versus cash-for-grass. Staff said they are analyzing cost-effectiveness and considering more flexible strategies.
• Chair Archibald asked about meter technology and customer access. Staff said the new AMI system provides daily wireless reads; customers may request access to older meters, and online daily usage access is expected in the future.

Proposition 218 Notification - Loose-in-the-Street Garden Refuse Rate

• Jamille Moons, Business Services Manager, presented a proposed rate restructuring and adjustment for Loose-in-the-Street collection of garden refuse. The proposal simplifies the rate structure to a single rate and moves toward full cost recovery.
• Staff clarified that service is currently mandatory for residential customers with 50 units or less; a future code revision is being considered to make service optional for 3+ units. The bi-weekly service option is not included because only the City Council can reduce service levels.
• Commissioners discussed the size of the rate increase and its potential political impact on the rate rollback initiative. Commissioner Brown raised enforcement concerns if larger multi-unit properties opt out and dispose of green waste in garbage cans; staff noted existing city code prohibits this.
• The Commission initially voted 5-0 to support staff's recommended rate for the Proposition 218 notification. Commissioner Veal-Hunter returned and requested reconsideration; the Commission voted to reconsider, then voted 6-0 to support staff's recommendation.

Commission Ideas, Questions and Announcements

• Staff reminded the Commission of a Water Conservation workshop on Saturday from 10 a.m. to 12 p.m. at 601 Alhambra.
• Staff are examining what would be needed to repeal Measure A and will bring it to the City Council with the budget in June.
• There was concern that only one meeting will be held before the August Rollback Initiative workshop; staff will check whether the Commission can take a position on the initiative.
• Staff reported on the independent cost-of-service study: an RFQ was issued, a review panel was convened, proposals were received, and results are expected by September 1, 2010.
• Commissioner Kretschmann announced a water-efficient bike ride event at Folsom Lake.

Key Outcomes

• Approved prior meeting minutes unanimously.
• Received and filed the Water Conservation Workshop presentation.
• Passed a motion (6-0) supporting staff's recommended rate for the Proposition 218 notification for Loose-in-the-Street garden refuse collection.
• Staff will follow up on street sweeping rates for multi-family properties and on the Commission's ability to take a position on the Rate Rollback Initiative.