Utilities Rate Advisory Commission Regular Meeting - April 26, 2023
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Utilities Rate Advisory Commission Regular Meeting - April 26, 2023
The Utilities Rate Advisory Commission (URAC) held a regular meeting on Wednesday, April 26, 2023, from 5:34 PM to 7:14 PM. Commissioners present: Megan Fidell (Chair), Connie Gutowsky (Vice Chair), Jill Zito, Lara Johnson, Rae Vander Werf, and Melissa Lee. Staff included Deputy City Attorney Michael Voss, Department of Utilities Director Pravani Vandeyar, and Supervising Engineer Brett Grant. The meeting covered the consent calendar, discussion of URAC's powers and duties, a proposed annual work plan, and presentations on impact fees and deferred maintenance. No public comments were made.
Consent Calendar
- Approval of January 25, 2023 Meeting Minutes (File ID 2022-02497): Passed unanimously (6-0).
- Department of Utilities Fiscal Year 2022/23 2nd Quarter Accountability Report (File ID 2023-00486): Received and filed.
Discussion Items
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Utilities Rate Advisory Commission Powers and Duties (File ID 2023-00298): Deputy City Attorney Michael Voss presented the history and scope of URAC, emphasizing its role in reviewing rate proposals and providing recommendations to the Mayor and City Council. He clarified that URAC does not have authority to review or revise utility service levels, which are reserved for the Council. Commissioners discussed potential work areas within URAC's purview, including monitoring the SURE low-income assistance program, reviewing DOU's strategic plan, coordinating rate increase timing between departments, analyzing deferred maintenance costs, and studying the financial impacts of fleet electrification. No formal action was taken; the commission agreed to compile a list of ideas for a future work plan to be presented to the Personnel and Public Employees (PMPE) committee.
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Personnel & Public Employees Annual Report Project Discussion (File ID 2023-00297): Commissioners shared additional project ideas, such as reviewing the DOU accountability plan, assessing outreach for the SURE program, and examining development impact fees in relation to rate setting. Director Vandeyar noted that many topics are already being addressed internally and offered to share educational presentations at future meetings. Commissioner Vander Werf moved to bring a compiled list of ideas to the next meeting for discussion, followed by a vote at the subsequent meeting. The motion was discussed but not formally voted on; instead, the commission directed staff to collect all proposals and present them at the next meeting for further deliberation, ensuring compliance with the Brown Act.
Information Item
- Staff Presentation on Impact Fees and Deferred Maintenance (File ID 2023-00485):
- Impact Fees: Pravani Vandeyar presented a proposal to adjust water, wastewater, and drainage development impact fees, which have not been updated in over 10–20 years and are currently 75% lower than neighboring jurisdictions. The new fees, based on a nexus study, aim to ensure new development pays its fair share for infrastructure. The proposal will go to City Council in summer 2023. Commissioners asked about potential incentives for dense infill and the relationship to Proposition 218; staff agreed to follow up.
- Deferred Maintenance: Brett Grant presented a memo detailing approximately $2 billion in deferred infrastructure investment across water ($739M), drainage ($329M), and wastewater ($455M+). He highlighted that emergency repairs cost 50% more than planned replacements and emphasized the need for long-term financial planning, including smaller annual rate increases rather than cycle of large increases and zero years. Commissioners discussed the importance of communicating the cost of inaction to the public. The information was received and filed.
Commissioner Comments – Ideas and Questions
- No additional comments were made.
Public Comments – Matters Not on the Agenda
- No public comments were received.
Adjournment
- The meeting adjourned at 7:14 PM.
Meeting Transcript
Thank you, Chair. The meeting is now live. Thank you. Utilities rate advisory commission meeting. The meeting is now called to order. Will the clerk please call the roll to establish a quorum? Yes, thank you, Chair. Commissioner Zito. Present. Thank you. Commissioner Johnson. Here. Thank you. Commissioner Vanderworf. Here. Thank you. Commissioner Lee. Present. Thank you. Vice Chair Gutowski. Here. Thank you. And Chair Fidel? Here. Thank you. We have a quorum. I would like to remind members of the public and chambers that if you would like to speak on an agenda item, please turn in a speaker slip when the item begins. For members of the public who wish to join virtually, please refer to the agenda for the Zoom link. Once you have joined the meeting and wish to speak, raise your hand to provide public comment when the chair confirms the public comment speaking period for your design desired item. If you are online, click raise hand on the bottom of your screen. If you're on 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. You will have two minutes to speak once you're called on. After the first speaker, we will no longer accept speaker slips and the raise hand feature in Zoom will be disabled. We will now proceed with today's agenda. Please rise if you're able. Thank you, Chair. I do not have any hands raised in Zoom, and I do not have any speaker slips in chambers. Thank you. Thank you. Are there any commissioners who wish to speak on this item? No one in the queue. Is there a motion and a second for the consent calendar? I move to approve the URAC meeting minutes of January 25th, 2023. Also good. Will the clerk please call the roll for the vote? Thank you, Chair. Commissioner Zito?
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