Utilities Rate Advisory Commission Meeting Summary – March 28, 2018

The Utilities Rate Advisory Commission met on Wednesday, March 28, 2018, at 5:30 PM in the Council Chambers, 915 I Street, Sacramento. The meeting covered the approval of previous minutes, election of new officers, and a detailed update on the Department of Utilities Accountability Plan, including the accelerated water meter program, rate assistance, and conservation efforts. Commissioners also discussed local hiring practices and outreach.

Consent Calendar

• Approval of Minutes (December 13, 2017): The minutes were approved unanimously by a 7–0 roll-call vote. (Commissioners present: Keith Ellis, Brian Baring, Al Garcia, April Jarvis, Andrew Day, Anthony Thomas, Timothy Horner)

Discussion Items

• Selection of New Commission Chair and Vice Chair:

  • Chair Timothy Horner announced his retirement; election was held.
  • April Jarvis was nominated and unanimously elected Chair (7–0).
  • Brian Baring was nominated and unanimously elected Vice Chair (7–0).
  • Chair Horner continued to preside over the remainder of the meeting.

• Department of Utilities Accountability Plan Update:

  • Quarterly Newsletter (Your Partner): Debuted in February 2018, focusing on education, project updates, and employee highlights. Distributed to mayor and council, posted on website and social media. A question was raised about distribution and feedback; Director Busath committed to providing a report on reach.
  • Financing:
    • Water program: $173.1 million State Revolving Fund loan at 1.7% (signed December 2017), $62.6 million revenue bonds at 3.58%, and $35 million pay-as-you-go. Total four-year water program: $270.7 million.
    • Wastewater program: Plan to issue $30 million revenue bonds in early 2019; total four-year program: $51.7 million.
    • Correction noted on page 4 of packet: Under water revenue bonds table, expected expenditure February 2018 column for total bond issuance should be $62.6 million (not $34.7 million).
  • Capital Improvement Projects:
    • Downtown combined sewer upsizing on 9th Street (G to L): 50% complete, $7.5 million budget, completion August 2018. On budget with $200,000 change orders for unidentified fiber optic cables.
    • Third Street pipeline (I to U): 5,700 ft of 42-inch pipe, $9 million budget, design completion June 2018, construction start February 2019, completion April 2020.
    • McKinley Water Vault: 6-million-gallon underground storage, pre-design complete, construction start May 2019, estimated completion late 2020, total cost ~$30 million. Environmental impact report to be issued within weeks.
    • Shasta Reservoir tank (South Sacramento): 4-million-gallon partially buried tank, 80% complete, completion fall 2018, total cost $19.5 million.
    • Accelerated Water Meter Program:
      • 74% metered (101,000 meters installed, 35,000 remaining).
      • Expended $39 million; remaining program cost $220 million.
      • 14 miles of water main installed (63 miles remaining).
      • Local hire goal of 20% exceeded at 23%, tracked by zip code (Promise Zone and disadvantaged areas).
      • Monthly cash flow projections slightly below forecast due to holiday/rain delays; expected to align by summer 2018.
      • Peak construction activity anticipated January–May 2019.
  • Director’s Report:
    • Sacramento Utility Rate Assistance (SURA) Program: ~8,800 customers currently enrolled (down from high of 9,100). Automatic approval for SMUD rate assistance customers. $2.8 million spent to date, with ~$2.6 million in direct rate assistance and ~$200,000 admin costs. Online application launched about a month prior; 40 applications received and automatically certified.
    • Water Efficiency/Conservation: City continuing at ~20% below 2013 benchmark use. March 1 moved to two-day-a-week watering. Rebates available for smart controllers, irrigation upgrades, and turf replacement. Leak detection algorithm using meter data will generate automated letters to customers.
    • Future Rate Adjustments: Next rate adjustment discussion expected early 2020.

Public Comments & Testimony

• No members of the public submitted speaker slips; no public comments were made.

Key Outcomes

• Consent calendar approved (7–0).
• April Jarvis elected Chair and Brian Baring elected Vice Chair (both 7–0).
• Accountability Plan Update received and filed.
• Action Items:
  • Director Busath will provide a report on newsletter distribution and feedback.
  • Staff will investigate tracking contractor demographics (race, gender) and report back within a week.
  • Staff will research other cities’ approaches to working with apartment complexes and master-metered properties to improve water efficiency.
  • Staff will provide details on marketing/outreach effectiveness and the advertising budget for conservation programs.
• No other business. The meeting adjourned at 6:45 PM.