Utilities Rate Advisory Commission Meeting Summary - October 23, 2013
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Utilities Rate Advisory Commission Meeting Summary - October 23, 2013
The Utilities Rate Advisory Commission (URAC) met on Wednesday, October 23, 2013, at New City Hall, 915 I Street, Council Chamber. The meeting was called to order at 5:35 p.m. and adjourned at 6:35 p.m. Present were Chair Douglas Brown and Commissioners Christopher Butcher, Kevin Schubert, Steven Archibald, Timothy Horner, and Carolyn Veal-Hunter; Commissioner Scott Brown was absent. The commission approved the previous meeting minutes, elected a new Vice Chair, adopted the 2014 meeting calendar, and received an update on the Department of Utilities Accountability Plan.
Commissioner Introduction
- New Commissioner Timothy Horner introduced himself as a professor at Sacramento State and chair of the geology department, with specialties in groundwater, surface water, and river restoration. He previously served on the city's water master plan update and water conservation plan committees.
Consent Calendar
- Minutes of June 26, 2013: Motion by Steven Archibald, seconded by Christopher Butcher. Approved 5-0-1, with Timothy Horner abstaining and Scott Brown absent. (Item 1)
Discussion / Action Reports
- Selection of Vice Chair (Item 2): Motion by Douglas Brown to nominate Carolyn Veal-Hunter, seconded by Christopher Butcher. Approved unanimously (6-0, Scott Brown absent). Veal-Hunter will chair meetings in the chair's absence.
- 2014 URAC Meeting Calendar (Item 3): Motion by Carolyn Veal-Hunter, seconded by Kevin Schubert. Approved unanimously. The 2014 calendar sets meetings for the fourth Wednesday of the month, except the second Wednesday in November and December due to holidays.
- Department of Utilities Accountability Plan Update (Item 4): Director Dave Brent, with division managers Bill Busath, Michael Malone, and Jamille Moons, presented the quarterly update. (Note: The agenda listed the recommendation as "Receive and file," while the minutes record it as "Receive and comment.") Key topics included:
- Bond fund expenditures: $12 million expended on water projects and $3 million on wastewater projects to date; internal certification processes ensure compliance with tax law.
- Water capital projects: The $171 million Sacramento River Water Treatment Plant rehabilitation is under construction, with pile driving and dewatering underway; the project includes a high-service pump station and new filtration/sedimentation components. A $77 million water meter program will install about 15,000 meters over three years; about 50% of the city is currently metered, with roughly 65,000–70,000 meters installed and 55,000 to go; full metering is required by 2025. Groundwater well rehabilitation includes four wells underway and eight planned in the next year and a half.
- Wastewater capital projects: The $12 million Oak Park Regional Storage Project will add 3.8 million gallons of combined sewer storage and includes 10-foot-diameter pipes installed beneath a future soccer field; construction is underway. Additional sewer rehab work totals about $4 million for combined sewers and $6 million for separated sewers.
- Utility Rate Assistance Program: About 1,900 applications have been received, with approximately 450 eligible. About 75% of applicants do not meet the threshold, which is set at 100% of the federal poverty level. Staff are evaluating whether to increase the threshold to 200% (similar to SMUD/PG&E programs) and will bring recommendations to council, likely in early 2014. Annual income limits range from $11,500 for a household of one to $39,630 for a household of eight; a household of four is $23,500. Commissioner Veal-Hunter asked whether the program is under-spending its allocation; Jamille Moons confirmed there is sufficient funding and that sensitivity analyses are being run. Commissioner Butcher requested a breakdown of administrative costs versus direct assistance at the next meeting.
- Department reorganization: The Utilities Department has consolidated from four to three divisions, with new strategic and business plans, and has integrated water conservation and water quality lab functions under engineering.
- Water conservation: Consumption has trended downward over the last decade. Advanced metering infrastructure (AMI) has helped detect leaks, saving about 600 million gallons since 2010. A WaterSmart customer portal is being piloted in the Pocket area, providing near-real-time usage data and leak alerts; expansion plans are not yet finalized. An updated water conservation plan will go to City Council next Tuesday.
- Future rate structure review: A consultant has been hired to review water, sewer, and drainage rate structures. Commissioner Archibald urged including a tiered water rate system for metered customers. Commissioner Horner asked for multiple tiered structure alternatives with varying levels of aggressiveness. Staff confirmed that tiering and conservation pricing will be evaluated. Drainage rates, which require voter approval under Proposition 218 and have not been increased since 1996, are also being studied.
Public Comments
- None were offered.
Commission Ideas, Questions and Announcements
- Commissioner Archibald requested an update at the next meeting on the fiscal health of the Department of Utilities and the Department of General Services Solid Waste program, including revenue trends, metered versus flat-rate revenue comparisons, reserve levels, and bond ratings. Jamille Moons agreed to provide an overview and drill-down.
- A question about the Bay Delta Conservation Plan was raised; Dave Brent responded that the city remains engaged, with resources in place and collaboration with regional partners.
Key Outcomes
- Approved minutes of June 26, 2013 (5-0-1, Horner abstaining).
- Elected Carolyn Veal-Hunter as Vice Chair (6-0).
- Adopted the 2014 URAC meeting calendar (6-0).
- Received and commented on the Department of Utilities Accountability Plan Update.
- Staff to return with: (1) utility rate assistance program analysis and potential threshold/credit changes; (2) a breakdown of program administrative costs versus direct assistance; (3) a fiscal health and revenue report requested by Commissioner Archibald; (4) preliminary rate structure alternatives.
Meeting Transcript
It is a little after 5 30, about 5 35. And uh I think we'll start with Patrick calling a roll. Christopher Butcher. Kevin Schubert? Here. Douglas Brown. Here. Steve Archibald? Here. Timothy Horner? Here. Carolyn Bill Hunter. Scott Brown. And just one meeting, one meeting announcement. This meeting has been video streamed. It can be viewed on the city's website, reviewed later from the archive files. Please silence all cell phones and mobile devices. If you wish to speak tonight, please complete a speech sleep speaker slip located at the back of the room and return it to me at any time. And should you need assisted listing devices, they are available from me upon request. Thank you. Thanks, Patrick. And the first item on our agenda is approval of the minutes. This is part of our consent calendar. So I don't know if there are any comments from commissioners on the minutes. Uh or if you would like to make a motion to approve. Perhaps Mr. Horner should. No, I was going to abstain. If it's not part of that. Alright. Do we have a second? Second. All right. We have a motion and a second. So with that, uh, we take the roll, Patrick. Christopher Butcher. Yes. Kevin Schubert. Yes. Steve Archibald. Yes. Timothy Horner. Abstain. Carolyn Bill Hunter. Yes. And Douglas Brown. Yes. Motion carries. All right. And I I was derelict in my duties in not announcing that we have a new member on our commission, our illustrious commission.
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