Sacramento Area Sewer District Board Meeting - April 11, 2024

The Sacramento Area Sewer District (SASD) board met in regular open session. The meeting included approval of a consent calendar, a public hearing on proposed rate increases, an update on the biosolids emergency at the Echo Water facility, and an update on the cash reserves investment program. All actions were taken as noted below.

Consent Calendar

• Items 1–3: Approved unanimously by voice vote. No items were pulled or commented on.

Public Comments & Testimony

• No public comments were made on consent items or on items not on the agenda.
• No public comments were made during the biosolids or investment presentations.

Discussion Items

• Rate Increases (Item 6): Staff presented a proposed three‑year rate increase for the collection system (no increase since 2010) and treatment system (no increase since 2018). Outreach efforts included mailing over 600,000 newsletters, a dedicated website, phone/email responses, translated materials (Spanish, Russian), four in‑person and one virtual community meeting (total attendance: 15 customers), and an industrial customer meeting (1 attendee). As of the meeting, 121 protests were received for collection rates and 159 for treatment rates, with zero industrial protests. Staff noted that some protest letters appeared to be AI‑generated. The board introduced the ordinance to amend the rates and continued the public hearing to May 8, 2024, for adoption. The motion carried unanimously.
• Rate Assistance Program: Communications Director Nicole Coleman reported that enrollment in the Sewer Lifeline Rate Assistance Program doubled in Q1 2024 compared to Q1 2023 (422 vs. 209 new enrollments). The board expressed support for continued outreach.
• Biosolids Emergency Update (Item 7): Operations Manager Sunny Lundy presented an update on the ongoing biosolids disposal challenges caused by upgrades required under the 2010 discharge permit. Key points:
  • The BNR (biological nutrient removal) process increased solids production by an estimated 50%, leading to solid storage basin (SSB) capacity issues and risk of overflow.
  • An emergency declaration was made in August 2023, with Phase 1 ($5 million) and Phase 2 ($7–9.3 million) supplemental harvest operations using geotextile bags to dewater and temporarily store solids.
  • Mitigation measures include a mobile belt press, containment booms, and a remote‑controlled agitator (the “Wolverine”) to redistribute solids.
  • Annual operating costs for biosolids disposal are expected to rise by $13.5 million (about 10% of the operating budget).
  • A technical memorandum is on file; future upgrades and a potential additional dedicated land disposal site are being evaluated.
• Cash Reserves Investment Program (Item 8): Finance Director Tepabanda and Carlos Abluitas from Chandler Asset Management reported on the program launched in 2022. As of December 2023, $223.1 million in reserves had been transferred to a separately managed portfolio, which had grown to $235 million—$1.1 million more than if the funds had remained in the county pool. The portfolio is invested primarily in U.S. Treasuries (40%), federal agency securities (26%), corporate bonds, asset‑backed securities, and a small allocation to supranational bonds. The board received and filed the update.

Key Outcomes

• Consent Calendar: Approved.
• Rate Increases: Ordinance introduced and public hearing continued to May 8, 2024, for adoption.
• Biosolids Emergency: Update received and filed.
• Cash Reserves Investment: Update received and filed.
• Adjournment: The meeting was adjourned after the final item.

Note: Although the chair opened the meeting as April 10, 2024, the official meeting date used per instructions is April 11, 2024.