Utilities Rate Advisory Commission Meeting – September 23, 2015
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Utilities Rate Advisory Commission Meeting – September 23, 2015
The Sacramento Utilities Rate Advisory Commission (URAC) met on Wednesday, September 23, 2015, at 5:30 p.m. in the Council Chambers at 915 I Street. The commission approved the consent calendar, clarified the list of current URAC members, received an update on tiered water rates, and held a detailed workshop on the storm drainage system’s financial and infrastructure challenges. No public comments were made.
Consent Calendar
- Item 1 – Approval of Minutes (September 9, 2015): Approved unanimously on a motion and second, with all five commissioners voting yes (Brian Beering, Ryan McManus, Timothy Horner, April Butcher, Andrew Day; Carolyn Veil Hunter absent).
Discussion Items
- Item 2 – Current URAC Commissioners: Staff clarified that the new commissioners appointed are Andrew Day and Ryan McManus (not John Matthias, whose name had been erroneously announced earlier). The clarification was received and filed.
- Item 3 – Tiered Water Rates (presented by Bill Busath, Director of Utilities): The city is committed to conservation pricing but faces two constraints: (1) only 55% of customers are metered (45% on flat rates), and (2) a recent court decision (San Juan Capistrano) struck down tiered rates that lacked a nexus to actual costs. The city is not planning a tiered rate proposal for FY 2017 but is hiring a consultant to develop a legally defensible structure for possible implementation in FY 2018. Commissioner Ryan McManus asked whether a full cost‑of‑service analysis would precede the tiered design; staff confirmed the rate change would be revenue‑neutral.
- Item 4 – Storm Drainage Workshop (presented by Susan Goodison, Business Services Manager, and Brett Grant, Supervising Engineer):
- Financial State: No rate adjustment since 1996. Current operating expenditures are projected to exceed revenues, with a $850,000 capital appropriation for FY 2016. Without rate changes, the fund balance is expected to be fully depleted within six years (by 2021). The fund also risks violating a 1.25 × debt service coverage ratio on an IBank loan, which could trigger a mandatory rate increase process under Proposition 218.
- System Overview: 135 drainage basins (104 pumped), 842 miles of pipeline, 420 miles of creeks/channels, 62 flood‑control basins. Only 53 of 135 basins have completed master plans, identifying over $200 million in needed improvements. The current pipe replacement cycle is one every 2,884 years.
- Proposed CIP (FY 2018‑21): $48.1 million total, including $11 million for regulatory projects, $9.3 million for rehabilitation, and $18 million for improvements. Investment would add an estimated 128 jobs and $19.8 million to the local economy.
- Next Steps: Financial plan to be presented October 28, with a follow‑up meeting in early November. Prop 218 notice would be mailed in November, public hearing in January, and council action in mid‑spring. Storm drainage rate adjustments require voter approval.
Public Comments & Testimony
- No members of the public spoke.
Key Outcomes
- Consent Calendar – Approved.
- Commissioners Clarification – Received and filed.
- Tiered Water Rates – City will not propose tiered rates for FY 2017; consultant to develop a defensible structure for FY 2018.
- Storm Drainage Workshop – Presentations and discussion received; staff will return with a detailed financial plan on October 28, 2015.
- Adjournment – The meeting adjourned at 6:27 p.m.
Meeting Transcript
Good evening, ladies and gentlemen. It is 531. I'm a little bit froggy today, but we'll try to make through it through this. I should be fine. Let's see. First of all, Mr. Cole, would you do the roll call? Brian Beering. Ryan McManus. Present. Timothy Horner. Present. April Butcher? Present. Andrew Day. Present. Carolyn Veil Hunter. Now what I do. Okay, we have a quorum. Thank you. Okay, thank you very much. Now I guess Mr. Cole, you need to read something first. Is that correct? That would be the statement about cell phones, correct? Yes, and the um broadcast. This meeting is being broadcast live. Okay, perfect. I appreciate you giving me a minute until I find the uh no worries. That's what I need to read. I think it goes along the lines of turning your cell phones off too, but we'll wait until we find that. This meeting is being video streamed and can be viewed on the city's website, or it can be viewed at a later date from the archived files. Please silence all cell phones and mobile devices. If you wish to speak tonight, please complete a speaker slip located at the back of the room, and you can return it to me any time. Should you need assisted listening devices, they are available from me upon request. All right, excellent. Thank you very much. So the first item on our agenda is to approve the consent calendar. So I will ask for a motion to approve this consent calendar and then a second, and then we can discuss that if we need to. I move to approve. I'll second. Okay, thank you very much. So we have a motion and a second to approve the consent calendar. The only item on our consent calendar tonight is the it uh are the minutes from last the last meeting. So if anyone has any comments, this would be the time. Give people a minute to think about that. Okay, I don't hear any comments from the other commissioners. Hearing none, Mr. Cole, could you please call for a vote on the consent calendar? Brian Beering.
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