Sacramento Area Sewer District Board Meeting - April 2, 2024

The Sacramento Area Sewer District (SACSUR) Board of Directors met on April 2, 2024, to adopt a recycled water rate and fee schedule for the Harvest Water program, recognize staff member Terry Mitchell for 30 years of service, and handle routine consent matters. The meeting was called to order at 8:41 AM with a quorum present.

Consent Calendar

• Item No. 1: Consent matters were approved unanimously by voice vote. No public comment was offered.

Discussion Items

• Board Calendar & State of the District Report: Staff announced the next board meeting on April 10, 2024, and noted a potential quorum challenge due to a closed session item with SAFCA involving seven board members who also serve on the SAFCA board. Directors received the 2023 State of the District report, which summarizes past events and future plans. A minor formatting issue on page 10 was noted.
• Item No. 4 – Harvest Water Recycled Water Rate and Fee Schedule: Terry Mitchell, Legislative and Regulatory Affairs Manager, presented the proposed rates and fees for delivering up to 50,000 acre-feet per year of recycled water to agricultural and habitat lands in southern Sacramento County. The schedule includes:
  • Volumetric cost: $30 per acre-foot for summer irrigation (May–October), $5 per acre-foot for winter (November–April), and $0 for habitat enhancement (to support eco-plan public benefits).
  • An annual administrative fee of $400 per on-farm connection assembly (AFCA).
  • Connection fees ranging from $30,000 to $50,000, with application fees of $275 per AFCA.
  • Connection fees would be waived for growers signing service agreements by August 31, 2024, to incentivize early adoption.
  • Rates are tied to SMUD electrical rates and GSA groundwater fees, fixed methodology for 10 years, with annual adjustments delegated to the district engineer.
• Directors expressed support and raised questions:
  • Director Desmond noted the $30/acre-foot rate is at or below current groundwater pumping costs.
  • Director Kaplan suggested clarifying that early termination repayment of connection fees should be mandatory (“shall” rather than “may”), with exceptions only for clear public benefit. She also suggested applying the $400 administrative fee per owner rather than per AFCA.
  • Director Karpinski Costa asked for context on water usage (approx. 1.5–7 acre-feet per acre depending on crop).
  • Director Soon celebrated the project’s significance and recommended publicizing it to ratepayers.
  • Director Sander noted he presented the project at the World Economic Forum in Davos, receiving praise from international leaders.
  • The Chair (likely Director Hume) raised parity concerns about the cost difference between this recycled water and other recycled water customers, but staff explained the unique grant funding and public benefits justify separate pricing. Staff confirmed no subsidy from other ratepayers.
• Item No. 5 – Recognition of Terry Mitchell for 30 Years of Service: Staff and external partners (Debbie Mackey of Central Valley Clean Water Association and Tom Grovog of Larry Walker Associates) praised Terry Mitchell’s leadership in legislative and regulatory affairs, particularly her role in securing funding for the Harvest Water project. Mike Hewitt presented her with a clock and flowers. Mitchell thanked the board and emphasized collaboration and compromise in environmental policy.

Key Outcomes

• Motion to adopt the Harvest Water rate and fee schedule: Moved by Director Desmond, seconded by Director Kaplan. Approved unanimously by voice vote. The schedule includes the provisions discussed, with staff to incorporate direction on clear repayment language and consideration of per-owner administrative fees in contracts.
• Recognition of Terry Mitchell: The board acknowledged her contributions and wished her well in retirement.
• Next Meeting: Scheduled for April 10, 2024, with a closed session item involving SAFCA.