Utilities Rate Advisory Commission Meeting on July 28: Storm Drainage Survey Results and Rate Proposals
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
Utilities Rate Advisory Commission Meeting – July 28, 2021
The Utilities Rate Advisory Commission (URAC) met virtually on Wednesday, July 28, 2021, to receive a presentation on storm drainage survey results and discuss potential rate adjustments. The commission approved the June 23, 2021 minutes and heard updates on the department's fiscal outlook, proposed fee structures, and next steps.
Consent Calendar
- Approved minutes of the June 23, 2021 meeting by motion, with Commissioner Lee initially abstaining but subsequently voting yes, ensuring unanimous approval.
Discussion Items
Department of Utilities Storm Drainage Workshop: Survey Results
- Tony Bertrand (Engineering Manager) presented background: a city auditor review (May 12, 2020) found that storm drainage fund expenditures will exceed revenue and reserves in fiscal year 2026 if funded at current levels. The system is valued at approximately $8.1 billion, and there are insufficient revenues to invest properly. The audit recommended a best-practice program with $34 million annual investment; the current CIP backlog is about $300 million. No drainage rate increase has occurred since 1996. Based on current funding, the fund balance falls below the working capital target of $11.7 million in FY25 and goes negative in FY28. A critical infrastructure program (not full best practice) would require $15–20 million annually; even then, the fund would fall below target in FY23 and negative in FY24.
- Jared Boygan (TBWB) described three rate scenarios based on impervious surface area, which is the mandated methodology. Residential properties are divided into three categories: SFR1 (less than 0.1 acre, 10% of customers), SFR2 (0.1–0.25 acre, 83%), and SFR3 (larger than 0.25 acre, 7%). Scenarios tested were: (1) replacement only – fees of $6, $11.50, and $22 per month for the three categories; (2) increase only – an additional fee leaving the existing 1996 revenue stream intact, about $6/month for most SFR2 customers; (3) replace and increase – fees of $8, $14.50, and $26 per month, roughly a 33% revenue increase.
- Kurt Bale (FM3 Research) presented survey methodology: conducted in April 2021, 1,200 interviews (telephone and online, 50/50 mix), split into three tranches of 400 per scenario (margin of error ±5%), offered in English and Spanish. Results: replacement only received 63% yes/30% no; increase only 54% yes/39% no; replace and increase 48% yes/44% no, with stronger intensity on the “no” side. Support was stronger among owners of smaller properties. Open-ended rationales for “yes” centered on clean water and rivers; “no” rationales included distrust of government and taxes too high. Spending priorities rated highest were keeping human waste out of rivers/creeks and protecting drinking water quality.
- Bill Busath (Director) outlined next steps: briefings to the city manager’s office and council members, stakeholder and customer outreach, three rate workshops (starting with the next URAC meeting), a more specific public survey in the fall, a Prop 218 protest mailer to all 140,000 customers, and following that, a ballot mailing process taking 6–7 weeks plus tabulation time. A definitive schedule will be presented in August.
Commissioner Questions & Discussion
- Commissioner Lee asked about the impervious surface calculation (confirmed it uses state best-practice coefficients) and whether highlighting “no increase since 1996” would increase support. Staff acknowledged it might be compelling but emphasized avoiding confusion with other rates.
- Commissioner Fidell asked if property owners could request an audit or waiver if they manage runoff on-site (e.g., bioswales). Staff confirmed this is under consideration. Fidell also asked about neighborhood-level survey results; staff noted they have address data and could break down results by council district or zip code if requested.
Introduction of Interim General Manager
- John Febbo introduced himself as the interim General Manager of the Department of Utilities, replacing Jerome Counsel (who is moving to Dallas, Texas). He mentioned SB 1383 resources and the URAC binder sent to commissioners, and expects to return in August with a rate schedule.
Public Comments
- No members of the public signed up to speak for matters not on the agenda.
Key Outcomes
- Approved the June 23, 2021 minutes unanimously.
- Received and filed the storm drainage survey results (as recommended on the agenda).
- Staff will continue with rate study, stakeholder outreach, and a second survey; a specific schedule will be presented at the August URAC meeting.
- No formal vote was taken on any rate proposal; discussion only.
Meeting Transcript
Chair staff is ready when you are very much madam clerk. Good evening. I want to welcome my colleagues as well as the public to the Wednesday, July 28, 2021, meeting of the Utilities Rate and Advisory Commission, better known as URAC, here in the city of Sacramento. We are functioning still virtually, unfortunately. However, with that said, we're looking forward to the data we can all gather once again there in the City Hall Chamber. With that, if I could I'd like to have the roll call, please. Thank you. Commissioner Baring. Commissioner Fidel. Present. Commissioner Gutowski. Commissioner Javist. Commissioner Lee. Present. Commissioner Vanderwerf. Chair. And Chair Thomas. Present. I'll hear an accountant for. We have a quorum. With that, uh, is there a recommendation to approve? Or is there a recommendation? Is there an appropriate motion to approve to accept the commission minutes from the June 23rd, 2021 meeting? Uh I'll move that we accept the minutes from the last meeting. I'll second. It's been moved and second. Call the role, please. Thank you. Commissioner Baring. Commissioner Fidel. Approved. Yes. Commissioner Gutowski. Commissioner Javis. Commissioner Lee. Commissioner. I was not here last week or last time, so Commissioner Vanderwerf. Hi. Um Chair Thomas. Yes. Um and Commissioner Lee, as an administrative matter, um, it's approval of the minutes. Um, this will not pass um without your eye vote. Oh, okay. Yes, I approve the minutes then. Thank you. Thank you, Commissioner Lee. Commissioner Lee. The motion. So we can move to move to the approval of the minutes for the June 23rd, 2020 meeting. Is there a motion to approve uh draft minutes for the June or 23 June?
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