OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Utilities Rate Advisory Commission Meeting – October 29, 2025: Water Fund Rate Planning Update and New Director Welcome

Utilities Rate Advisory Commission — Wednesday, October 29, 2025
BodySacramento, California
SessionUtilities Rate Advisory Commission
DateWednesday, October 29, 2025
StatusFILED
Video Record
0:00 / 52:26
Transcript — Verbatim
0:27

All right.

0:28

Good evening.

0:30

We are here for the October 29th meeting of the rate utility commission.

0:36

Let's see.

0:37

It is now 5 30.

0:38

The meeting is now called to order.

0:39

Will you please call the role to establish a quorum?

0:42

Thank you, Chair.

0:43

Commissioners, please unmute.

0:44

Commissioner Tenekella.

0:50

Commissioner Gasbard.

0:52

Here.

0:52

Commissioner Burdock?

0:54

Here.

0:55

Commissioner Steinbaum?

0:57

Here.

0:57

Commissioner Shambhai?

0:59

Present.

1:00

Commissioner Nilsen is absent.

1:02

Commissioner Olson?

1:03

Here.

1:04

Vice Chair Eberley is absent.

1:08

Commissioner Johnson?

1:09

Here.

1:10

Commissioner Tran?

1:12

Here.

1:12

And Chair Zito.

1:13

Here.

1:13

Thank you.

1:14

We have a quorum.

1:15

Okay.

1:16

Alrighty.

1:16

So I would like to remind members of the public in chambers that if you would like to speak on agenda item, please turn in a speaker slip when the item begins.

1:26

You will have two minutes to speak once you are called on.

1:29

After the first speaker, we will no longer accept speaker slips.

1:32

We will now proceed with today's agenda.

1:34

So if everyone will please stand for the land acknowledgement and pledge of allegiance.

1:45

To the original people of this land, the Nissan people, the Southern Maidu Valley, and Plains Miwok.

1:58

May we acknowledge and honor the Native people who came before us and still walk beside us today on these ancestral lands by choosing to gather together today in active practice of acknowledgement and appreciation for Sacramento's Indigenous People's History Contributions and Lives.

2:13

Thank you.

2:14

Remain standing for the Pledge of Allegiance.

2:16

I pledge allegiance to the flag of the United States of America and to the Republic for which it stands.

2:23

One nation under God, indivisible with liberty and justice for all.

2:29

Okay, we can be seated, and we'll move on to our first order of business today, which is the approval of the consent calendar.

2:35

Clerk, are there any members of the public who wish to speak on the consent calendar?

2:39

Thank you, Chair.

2:40

I have no speaker slips for this item.

2:42

Um let's see.

2:44

Okay, let's see.

2:48

Any members of the council want to speak?

2:50

Uh yeah, Tim Olson uh move to approve the consent calendar.

2:56

Do we have a second?

2:58

I'll second.

2:59

Hey, thank you.

3:02

I have a motion by um, see, I'll get the names.

3:06

Uh Commissioner Olsen seconded by Commissioner Tran.

3:12

Okay.

3:12

Clerk, will you please call the roll for a vote?

3:15

Thank you, Chair.

3:15

Uh Commissioner Tenankella.

Discussion Breakdown — Share of Meeting
Budget and Finance█████████████████████████████████████████████62%
Engineering And Infrastructure████████████16%
Procedural██████8%
Technology and Innovation████6%
Community Engagement████6%
Personnel Matters█2%
Summary of Proceedings

Utilities Rate Advisory Commission Meeting – October 29, 2025

The Utilities Rate Advisory Commission (URAC) met on Wednesday, October 29, 2025, at 5:31 PM in the Sacramento City Hall Council Chamber. Chair Jill Zito presided. The meeting focused on a detailed rate planning update for the Water Fund, including the need to address a structural funding gap, policy objectives, and critical capital and deferred maintenance needs. The Commission also welcomed the new Director of the Department of Utilities, Dalia Fadl. The meeting adjourned at 6:23 PM.

Consent Calendar

  • Item 1: Approval of the Utilities Rate Advisory Commission Meeting Minutes of August 27, 2025 (File ID: 2025-00263). Passed unanimously by a motion from Commissioner Olson, seconded by Commissioner Tran. All nine present commissioners voted in favor; Commissioners Eberle and Nelson were absent.

Discussion Items

  • Item 2: Department of Utilities Rate Planning Update – Water Fund (File ID: 2025-01814) – David Levine, Long-Range Financial Planning Manager, presented an update on the Water Fund’s financial outlook. Key points included:
    • Structural gap: Operating expenses exceed revenues by over $30 million annually, creating an ongoing shortfall that is eroding fund balances.
    • Eight years without a rate adjustment (since FY20) due to prior rate increases for solid waste and storm drainage, COVID-19 impacts, and inflation.
    • Three priority objectives: (1) Ensure continuity of operations by closing the projected $29.6 million gap in FY28; (2) Meet policy objectives (120 days of working capital, one-year capital reserve, and a 1.20 debt service coverage ratio); (3) Address highest-priority deferred maintenance and operational needs.
    • Deferred maintenance: Estimated at $875 million in 2025 dollars, up from $740 million in 2021. Current 30-year Capital Improvement Program (CIP) allocates $275 million for FY28–32 for these categories.
    • Non-deferred maintenance needs: $190 million identified over five years; $49 million recommended for highest-priority items, including: fleet replacements ($19 million), water operational needs ($16 million), water policy and planning ($12 million), and information technology upgrades (largely Beacon AMI and citywide system upgrades).
    • Process timeline: A finalized financial plan for each fund is expected by the end of the calendar year; cost-of-service and proposed rates will be presented to URAC in June 2026, following community engagement in early 2026.
  • Welcome New Director: Chair Zito introduced Dalia Fadl, the incoming Director of the Department of Utilities (starting November 3). Ms. Fadl shared her background in civil/environmental engineering and 22 years of public service, including prior work at the City of Sacramento.

Commissioner Comments

  • Commissioner Olson requested more detailed breakdowns of proposed costs and clarified the difference between the $740 million (2021) and $875 million (2025) deferred maintenance figures, confirming the increase was due to inflation using a construction cost index. He also asked about accessing detailed CIP data, which staff noted is available in the URAC binder.
  • Commissioner Johnson suggested that future presentations include concrete examples and case studies to better communicate the impact of rate increases to ratepayers. She also asked whether deferred maintenance includes future regulatory changes; staff clarified that regulatory costs are spread across budgets and are not solely within deferred maintenance.
  • Commissioner Tanikella asked whether the $49 million in highest-priority non-deferred maintenance needs represents priority one items. Staff confirmed it includes mostly priority one projects, but some priority one items remain unfunded, with the hope of addressing them in a subsequent rate cycle.

Public Comments – Matters Not on the Agenda

  • None.

Key Outcomes

  • The Consent Calendar was approved unanimously.
  • The discussion item was received and commented on; no vote was required.
  • The next URAC meeting is scheduled for December 10, 2025, where an update on the wastewater fund is expected.

Meeting Transcript

All right. Good evening. We are here for the October 29th meeting of the rate utility commission. Let's see. It is now 5 30. The meeting is now called to order. Will you please call the role to establish a quorum? Thank you, Chair. Commissioners, please unmute. Commissioner Tenekella. Commissioner Gasbard. Here. Commissioner Burdock? Here. Commissioner Steinbaum? Here. Commissioner Shambhai? Present. Commissioner Nilsen is absent. Commissioner Olson? Here. Vice Chair Eberley is absent. Commissioner Johnson? Here. Commissioner Tran? Here. And Chair Zito. Here. Thank you. We have a quorum. Okay. Alrighty. So I would like to remind members of the public in chambers that if you would like to speak on agenda item, please turn in a speaker slip when the item begins. You will have two minutes to speak once you are called on. After the first speaker, we will no longer accept speaker slips. We will now proceed with today's agenda. So if everyone will please stand for the land acknowledgement and pledge of allegiance. To the original people of this land, the Nissan people, the Southern Maidu Valley, and Plains Miwok. May we acknowledge and honor the Native people who came before us and still walk beside us today on these ancestral lands by choosing to gather together today in active practice of acknowledgement and appreciation for Sacramento's Indigenous People's History Contributions and Lives. Thank you. Remain standing for the Pledge of Allegiance. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands. One nation under God, indivisible with liberty and justice for all. Okay, we can be seated, and we'll move on to our first order of business today, which is the approval of the consent calendar. Clerk, are there any members of the public who wish to speak on the consent calendar? Thank you, Chair. I have no speaker slips for this item. Um let's see. Okay, let's see. Any members of the council want to speak?

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