Utilities Rate Advisory Commission Meeting - January 22, 2014

The Utilities Rate Advisory Commission met on January 22, 2014, at 5:30 p.m. (open session began at 5:57 p.m.) to discuss the Department of Utilities Accountability Plan, including capital project updates, drought response, and the utility rate assistance program. The commission unanimously approved the consent calendar and received staff presentations and public comments.

Consent Calendar

• Approval of Minutes (October 23, 2013): Moved by Steven Archibald, seconded by Christopher Butcher. Approved unanimously (4-0-3, with three members absent).

Public Comments & Testimony

• No public comments were made on matters not on the agenda.

Discussion Items

• Department of Utilities Accountability Plan Update: Director Dave Brent presented an update on the Capital Improvement Program (CIP), highlighting the water treatment plant upgrade at SAC and Fairbairn plants, the $77 million meter and pipeline replacement program, and the $12 million Oak Park storage project. He noted that over 500 jobs have been created through the investment. The presentation also covered the ongoing drought, with the city implementing a mandatory 20% water-use reduction. Staff detailed emergency water interties, groundwater well rehabilitation, and plans to bring the SAC plant back online at 130 million gallons per day by March 2014. Commissioner Steven Archibald urged the city to seek state bond funds for accelerating the water meter program. Commissioners discussed enforcement, use of meter data for conservation outreach, and the city's Hodge flow restrictions.
• Utility Rate Assistance Program: Business Services Manager Jamille Moons presented a proposal to increase the income eligibility threshold from 100% to 200% of the federal poverty level and to raise monthly credits from $3.50 to $7 for water and from $2.50 to $5 for wastewater, retroactive to July 1, 2013. The program, funded by a portion of the general fund tax on utilities, currently has lower-than-expected participation. The proposal aims to align with SMUD's program and simplify enrollment. Commissioners discussed sustainability, administrative costs, and the potential for leveraging SMUD data.

Key Outcomes

• Consent Calendar Approved: The minutes from October 23, 2013, were accepted unanimously.
• Accountability Plan Update Received: The commission received and commented on the update; no formal action was taken.
• Rate Assistance Program Recommendations: Staff will take the proposed changes (increased eligibility, higher credits, retroactive application) to the City Council for approval. The commission expressed support for the program and noted the need for continued monitoring of participation rates and funding.
• Drought Response: The city is implementing a Stage 2 water shortage declaration with a mandatory 20% reduction, increased enforcement, and public education. The commission discussed the importance of water meters and well rehabilitation for long-term supply reliability.
• Next Steps: Staff will continue to work on drought contingency plans, capital projects, and the rate assistance program, with further updates to the commission expected as the budget process continues.