Utilities Rate Advisory Commission Meeting - October 28, 2015
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Utilities Rate Advisory Commission Meeting - October 28, 2015
On October 28, 2015, the Sacramento Utilities Rate Advisory Commission (URAC) met at 5:30 p.m. in Council Chambers (915 I Street, 1st Floor). Commissioners present: Ryan McManus, Timothy Horner, April Butcher, and Chair Carolyn Veal-Hunter; absent: Brian Biering and Andrew Day. The meeting covered approval of prior meeting minutes, adoption of the 2016 meeting calendar, and a detailed presentation on the Water, Wastewater, and Storm Drainage Program Finance Plan, which included proposed rate adjustments for the next four fiscal years (FY17–FY20). No public comments on non‑agenda items were made.
Consent Calendar
- Approval of Minutes for September 23, 2015: Approved unanimously by the four present commissioners.
Discussion Items
- 2016 URAC Meeting Calendar: Approved unanimously. The calendar sets regular meetings on the fourth Wednesday of each month, with exceptions in November and December (moved to the second Wednesday) and an additional meeting on February 10, 2016, to accommodate rate hearings.
- Department of Utilities Water, Wastewater, and Storm Drainage Program Finance Plan: Staff presented a comprehensive overview of the capital program and financial plan. Key highlights:
- Accountability: Over‑delivery on prior rate‑funded projects (e.g., treatment plant $10M under budget, 28 miles of pipe rehab vs. 11 promised, 27 wells rehabbed).
- Proposed Capital Program: $230M for water meter retrofits (41,000 meters, 76 miles of backyard main replacement), $30M for combined system improvements (McKinley Park storage), and $13M for storm drainage regulatory compliance and rehab.
- Rate Proposals: Water – 10% annual increases; Wastewater – 9% annual increases; Storm drainage – 16% annual increases (first increase in 19 years) along with a rate structure change from room‑count to impervious area.
- Financial Plan: Assumes mix of cash and debt (State Revolving Fund loans at 3% interest, tax‑exempt bonds at 5.75%). Aims to maintain 120 days of operating reserve and achieve cash‑funded capital programs after this four‑year period.
- Rate Assistance: Existing program funded by 1% of general fund transfer; proposal to extend to storm drainage. Approximately 1,500 customers currently enrolled; staff seeking to expand outreach.
- Regional Comparison: Water rates initially lower than peers; wastewater rates higher due to smaller rate base; storm drainage rates higher due to flat terrain and 105 pump stations.
- Next Steps: Proposition 218 notice mid‑November to early December; city council workshop November 3; official rate hearing January 27, 2016; storm drainage mail‑back ballot in April 2016 (requires 50% + 1 of returned ballots for approval).
Key Outcomes
- Received and Filed: The Finance Plan presentation was received and filed by the Commission. No formal vote on rate increases was taken at this meeting; rates will be considered at a future hearing (January 27, 2016).
- Commission Requests: For the December 9, 2015 meeting, the Commission requested:
- A presentation from outreach consultant Crocker & Crocker on public communication plans.
- Additional analysis of alternative rate scenarios or consequences of not approving the proposed rates (e.g., delay in accelerated meter program, failure to meet regulatory deadlines).
- Adjournment: The meeting adjourned at 7:31 p.m.
Meeting Transcript
We're gonna call the meeting of the utility rate advisory commission to order at this time. Um we'd have is a roll call, please. Brian Beering. Brian McManus. Present Timothy Horner? Present. April Butcher. Present. Andrew Day is absent. And Carolynville Hunter? Present. We have a quorum. Quorum, thank you. Um the first item our agenda is to review the um minutes of the September 23rd meeting. Everyone could take a moment to look at those. There's no objection, we can approve those on the consent calendar. Okay, consent calendar. Ryan McManus. Yes. Timothy Horner? Yes. April Butcher? Yes. Yes. Minutes passed. And joined by Commissioner Brian Baring. Okay. The um first item on our discussion calendar is we're going to you have in your package our 2016 meeting calendar. As you know, we traditionally meet on the fourth Wednesday of each month. And um that's my item. Yeah, we usually meet on the fourth Wednesday of each month with the exception of November and December because that runs into our holidays, and so we move that to the um second uh Wednesday of uh November and December. Also, we've um put in an additional meeting in February for February 10th at the request of the Department of Utilities. Um that's about around the time where the rate hearings will be occurring. So we wanted to secure the space and also um have that already on the calendars. Um we probably will not be um having meetings every single month as outlined, but we do need to um uh reserve the space and kind of get that timers uh set aside in advance. So that's it. Okay, if everyone's had a chance to look at the calendar, is there any concerns, any of these dates raise any for anybody? Okay, so with no further discussion, um can entertain. I'd like to make a motion to approve the um 2016 calendar. Okay, for the meeting calendar, Brian Beering Brian McManus? Yes, Timothy Horner, April Butcher, and Carolyn Vilhunter. Aye. Motion passes. Okay, we've got our agenda set for the next up through the next year, so we're good to go. Um the next item we're going to have is a presentation by the Department of Utilities on regarding the wastewater, water, wastewater, and storm drainage program finance plan. Thank you. Good evening, uh, Chair Hunter and the members and commissioners. Um my name is Bill Buseith. I'm the director of the Department of Utilities for the City of Sacramento. And first I want to tell you how much we appreciate you coming.
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