Utilities Rate Advisory Commission Meeting - October 28, 2020

On October 28, 2020, the Sacramento Utilities Rate Advisory Commission (URAC) held a teleconference meeting starting at 5:30 p.m., chaired by Commissioner P. Anthony Thomas. The meeting focused on a revised rate proposal for Recycling and Solid Waste (RSW) services and a discussion of the City Council's 2019 rate adjustment decision. The consent calendar was approved unanimously, and no public comments were received.

Consent Calendar

• Approval of Minutes – The commission approved the minutes from the September 23, 2020 regular meeting and the October 6, 2020 special meeting by a single unanimous motion.

Discussion Items

• Workshop on Proposed Rate Adjustment for Recycling and Solid Waste (RSW) – Jerome Council, General Manager of Recycling and Solid Waste, presented a revised rate proposal driven by chronic service day interruptions and rapid growth. Key points included:
  • Service interruptions: In July 2020 alone, there were 5 open garbage routes, 22 open green waste routes, and 27 open recycle routes. From June 1 to October 12, 2020, cumulative totals were 9, 54, and 60 open routes respectively.
  • Proposed rates: Garbage from $22.13 to $23.20 (2022) and $24.63 (2023); recycling no increase (funded by reserves); organics/green waste from $11.88 to $16.51 (2022) and $17.91 (2023); street sweeping from $1.78 to $1.87 (2023). Total combined increase of $8.98 over two years.
  • Staffing: The previous rate adjustment approved only 8 of 21 requested staff; 5 equipment operators were hired, and 3 street sweeper operators are pending equipment delivery. The new proposal requests 13 additional staff.
  • Growth: The city added over 1,000 accounts per year since 2015, with 371 accounts added from July to September 2020. Growth is concentrated in North Natomas, leading to routes with over 2,000 containers versus a standard of 1,200.
  • Organics processing costs: Under new contracts required by Senate Bill 1383, tipping fees will rise from $43 per ton to between $70 and $97 per ton, adding $3.2 million in expenses in 2021–2022.
  • Commissioners questioned why new accounts do not cover their costs (no impact fees), route efficiency, and comparisons with other cities. Commissioner Fidel noted observed route combining, but staff stated it is not policy. Commissioner April Travis acknowledged the department's repeated need for rate increases and hoped the council would approve the full three-year term.
• Discussion of Council Decision Related to 2019 Rate Adjustment – Commissioners reviewed the City Council's prior decision to approve only 1.5 years of the requested 3.5-year rate adjustment. Commissioner Fidel reported that during the council meeting, members expressed dissatisfaction, wanted more options (e.g., impact fee alternatives), and lacked information on past efficiency efforts. Staff noted that briefings were offered to all council offices but some vocal members did not attend. No formal motion or directive was issued by the council. Commissioners discussed the need to align future rate proposals with council expectations but cautioned against interpreting informal comments as directives.

Key Outcomes

• No votes were taken on the discussion items; the commission received and commented on both the revised RSW rate proposal and the council decision discussion.
• Next steps: The commission will hold another workshop on December 9, 2020, mail Proposition 218 notices in January 2021, conduct a public hearing on February 24, 2021, and bring the rate package to the City Council in April 2021 for implementation on July 1, 2021.
• Staff will follow up on Commissioner Fidel's question about aligning route scheduling changes (from 4/10 to 5/8 workdays) with the city's Climate Action Plan.