Utilities Rate Advisory Commission Meeting – September 27, 2017

The Sacramento Utilities Rate Advisory Commission (URAC) met on September 27, 2017, at 5:30 p.m. in the City Hall Council Chamber. Commissioners present: Keith Ellis, Brian Biering (arrived late), April Javist, Andrew Day, P. Anthony Thomas, and Timothy Horner (Chair). Commissioner Biering abstained from the consent calendar because he was not present at the June meeting. Commissioner Javist also abstained due to absence at the prior meeting. The meeting adjourned at 6:26 p.m.

Consent Calendar

• Approval of Minutes for June 28, 2017 – Motion passed with 4 ayes (Ellis, Day, Thomas, Horner), 0 noes, 2 abstentions (Javist, Biering).

Discussion Items

• Department of Utilities Accountability Plan Update – Staff presented the FY2017-2020 Capital Improvement Program (CIP) financing update, FY2018-2022 five-year fund forecasts, the Sacramento Utility Rate Assistance (SURA) program, and drought/water conservation updates.
  • Five-Year Forecasts: Staff noted that the forecasts in the city’s budget book do not include debt service for unissued bonds. For water, including the 2017 water revenue bonds and a state revolving fund loan would bring the projected FY22 ending fund balance to approximately $134 million. For wastewater, including future bond debt service would result in an FY22 balance of about $16 million. The drainage fund forecast assumes no rate adjustments and no capital program after FY18; the FY22 120-day working capital is projected at $11.6 million, leaving a $348,000 gap below the guiding principle.
  • SURA Program: Grew from approximately 1,800 participants to nearly 9,150; currently 8,850 participants due to attrition. As of August 1, 2017, $4.3 million was available, with $1.9 million expended and about $1.7 million provided as discounts. The program continues outreach partnerships.
  • Water Conservation Ordinance Changes: Director Bill Busath reviewed changes approved by City Council on August 15, 2017. Key changes: permanent two-day-a-week watering from March 1 to September 30 (reduced from three days); exclusions for hand watering, heat waves (two consecutive days over 100°F), smart controllers, drip irrigation, new landscapes (21-day establishment period), and non-potable/recycled water. Fines remain at drought levels for first year but will revert to pre-drought levels ($25 first paid violation) on November 1, 2017; a proposed increase to $50 was not adopted. Waivers are available through classes, water-wise house calls, or rebate programs. A $316,000 outreach contract was approved for education. Historic water use dropped from over 300 gallons per capita per day (GPCD) in the 1970s–80s to about 160 GPCD in the prior year; the goal is to keep long-term GPCD under 190.
  • Commissioner Questions: Commissioner Biering asked about rebates for switchgear upgrades (none with SMUD for that), cap-and-trade impacts on natural gas use (not yet studied), and whether the city could become a covered entity. Commissioner Javist requested better comparative data for rate impacts and asked about the storm drainage ballot measure (still several years out). Commissioner Day asked for a comparison of Sacramento’s per capita water use to other municipalities; staff will provide that later.

Key Outcomes

• The commission received and filed the Department of Utilities Accountability Plan Update (no vote required).
• Announcements: Commissioners Horner and Day were reappointed for two more years; the seat formerly held by Ryan Biering (who moved out of city) is vacant, with council interviews expected in November.
• The meeting adjourned at 6:26 p.m.