Sacramento Utilities Rate Advisory Commission Meeting Summary - September 28, 2022
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
Sacramento Utilities Rate Advisory Commission Meeting Summary - September 28, 2022
The Sacramento Utilities Rate Advisory Commission (URAC) met virtually via Zoom on Wednesday, September 28, 2022, from 5:34 p.m. to 6:37 p.m. The meeting was teleconference-only under AB361 and the City of Sacramento’s COVID-19 local emergency declaration. Roll call showed Commissioners Melissa Lee, Phillip Thomas, Jill Zito, and Chair Megan Fidell present; Commissioner Connie Gutowsky absent; Vice Chair Rae Vander Werf absent for the roll call and consent vote, although the draft minutes list her as joining at 5:58 p.m. (a discrepancy). The commission approved amended minutes, received two updates, and heard a financial report.
Consent Calendar
- Motion by Commissioner Zito, seconded by Commissioner Lee, to approve the consent calendar as amended. It passed 4-0 (Fidell, Lee, Thomas, and Zito yes; Gutowsky and Vander Werf absent).
- Approved the June 22, 2022 meeting minutes, amended to correct the spelling of Commissioner Thomas’s name.
Public Comments & Testimony
- None. The City Clerk reported no raised hands for public comment on any agenda item or for matters not on the agenda.
Discussion Items
- Item 2 - Update on Chapter 2.40 of the Sacramento City Code (Oral Report): City Clerk Mindy Cuppy said the City Council approved an update to Chapter 2.40 on August 30, 2022, and summarized key provisions: standardized applications and appointments, four-year terms, a limit of two consecutive terms, removal for three unexcused absences, annual election of chair and vice chair (max two calendar years), prohibition on ad hoc committees, council approval for subcommittees, and a required report to council every five years. Existing ad hoc committees must cease by the end of the calendar year. Cuppy noted future work includes updating council rules, ongoing training, expanded diversity-focused recruitment, and Brown Act training planned for spring 2023. Commissioner Lee asked about the difference between an ad hoc committee and subcommittee; Cuppy explained ad hoc committees are short-term and specific-purpose while subcommittees may last longer and require council approval. Lee also requested that commissioners be notified when items they worked on go before the council; Cuppy said this would be part of the department-contact handbook. Action: received and filed.
- Item 3 - Department of Utilities Accountability Plan Update, 4th Quarter FY2022: Director Bill Busath announced his upcoming retirement after more than 26 years with the department and 32 years as an engineer. Charlie Cunningham reviewed technology initiatives: CCTV/Lidar manhole mapping processing about 70 manholes per month (19 years to finish at current resources), the Free Flow scheduling software upgrade launched September 26 with a 9-month rollout, a new Roach Complaint Tracking App, and about $1.8 million in grants for drones and a landing craft. Challenges included a 60-day injunction delaying storm preparation (estimated 1,500 overtime hours / about $98,000 in extra labor) and staffing turnover (72 staff lost, 27 vacancies). Busath reported 8,913 residential participants and five nonprofits in the rate assistance program as of June 30, 2022, with about $3.782 million spent in FY22 against a $3.78 million budget. Outreach included the rebranded 'City Drop' report, nine stormwater community action grants, and 9,000+ pledges in the Wyland National Mayor's Challenge. Commissioner Thomas asked how Free Flow works and whether the Roach app is public; Cunningham said Free Flow automates work-order scheduling and the app is not currently public, with a follow-up promised. Action: received and filed.
- Item 4 - Department of Utilities Financial Update: Penny Buchman presented unaudited FY2022 projections and the FY2022-23 adopted budget. Wastewater operating expenditures were projected about $2.8 million under budget (increasing fund balance ~$2.4 million); storm drainage revenues were about $2 million over budget while expenditures were $1.3 million under budget (decreasing fund balance ~$2.9 million). All three funds were projected above the 120-day working capital guideline, but planned capital spending was not included. Five-year CIP totals are about $126 million (water), $12 million (wastewater), and $69 million (storm drainage), with storm drainage spending dependent on pending litigation over the new property-related storm drainage fee. The FY23 budget has no rate increases and includes a new storm drainage fee fund expected to generate ~$20 million annually but currently on hold. Water-fund interest was budgeted at $400,000 but collected $1.5 million; staff realigned the FY23 budget. DOU remained in compliance with debt and reserve targets during the pandemic, and ~$4.7 million was paid through state arrearage programs. Commissioner Thomas questioned the interest variance; Buchman said budgets had been set too low. Commissioner Lee asked about 'CIP/MYOP' and the pending storm-fee litigation; staff clarified the acronyms and declined to discuss the litigation, expressing hope for a positive outcome. Chair Fidell noted reserves have stayed above target for five years despite assurances they would be spent; staff said the CIP is intended to draw them down. Action: received and filed.
Commissioner Comments – Ideas and Questions
- Commissioners discussed the reserve spending concern, extended congratulations to Director Busath, and offered no additional formal agenda ideas.
Public Comments – Matters Not on the Agenda
- None.
Key Outcomes
- Approved the June 22, 2022 minutes as amended (4-0, two absent).
- Received and filed the Chapter 2.40 update, the Q4 FY2022 Accountability Plan update, and the FY2022 financial update (no votes required).
- Staff committed to include commission notification of council items in the department-contact handbook.
- DOU reiterated its intent to spend down excess fund balances through the five-year capital improvement program.
- Director Bill Busath announced his retirement; transition planning will follow.
Meeting Transcript
Chair staff is ready when you are. Great, thank you. Good evening and welcome to the September 28th, 2022 utilities rate advisory commission meeting. The meeting is now called to order. Will the clerk please call the rule to establish a quorum? Thank you, Chair. Commissioners, please unmute and turn on your video. Commissioner Gutzowski. Is absent. Commissioner Lee. Present. Thank you. Commissioner Thomas. Present. Thank you. Commissioner Zito. I will come back to her. It looks like she might have just promoted. Present. I'm present. Thank you so much. Vice Chair Vanderwerf. Is it? Chair Fidel. Present. Thank you. We have a quorum. Thank you. This meeting is virtual via Zoom. For members of the public who wish to join, please refer to the agenda for the Zoom link. Once you have joined the meeting and wish to speak, raise your hands to provide public comment when the chair confirms the public comment speaking period for your desired item. If you're online, click on raise hand on the bottom of your screen. And the mobile app, you can raise your hand by tapping the raise hand option in the more tab. If you're calling in via telephone to raise your hand, dial star nine. Then to unmute or mute, dial star six. Speakers will be called on by the last four digits of their phone number. We'll have two minutes to speak once you are called on. We will now proceed with today's agenda. Please rise for the opening acknowledgments in honor of Sacramento's indigenous people and tribal lands. To the original people of this land, the Nissanon people, the Southern Maidu, Valley and Plains Miwok, and Patwin Wintu peoples, and the people of the Wilton Rancheria, Sacramento's only federally recognized tribe. Maybe may we acknowledge and honor the Native peoples who came before us and still walk beside us today on these ancestral lands by choosing to gather together in the active practice of acknowledgement and appreciation for Sacramento's indigenous people's history, contributions, and lives. Thank you. Please remain standing for the Pledge of Allegiance. A pledge of allegiance to the flag of the United States of America and to the Republic for which it stands. Thank you. Thank you, Chair. I have no speakers with their hands raised for this item. Thank you. Are there any commissioners who was just wish to speak on this item? Yes, Commissioner Lee.
openpublica.com