Sacramento Area Sewer District Board Meeting – October 1, 2026

The Sacramento Area Sewer District (SACSEWR) Board held a regular meeting on October 1, 2026, at approximately 9:00 AM. The board approved consent items, a labor agreement, the 2026 long-term financial plan and capital funding projection, and continued an eminent domain resolution. Key presentations included the financial plan update and a quarterly report on the Harvest Water project, with discussion of cybersecurity risks, project cost review processes, and grower recruitment.

Consent Calendar

• Items 1–8: Approved unanimously with no public comment or items pulled.

Discussion Items

Item 10 – Miscellaneous District Engineer Matters

• Mr. Luddy announced the next board meeting will be held at the Gaiti facility on October 14, 2026. He noted that Item 11 requires a two-thirds vote and moved to continue it to that date.

Item 11 – Resolutions of Necessity for Eminent Domain (Harvest Water)

• The board unanimously voted to continue this item (motion by Director Hume, second by Rodriguez) to the October 14 agenda.

Item 12 – Letter of Understanding with Professional Engineers Association (Scientist Classification Salary Relationships)

• Matt Doyle, Internal Services Director, presented the proposed LOU amending Section 3.3 of the MOU to establish salary relationships for scientist classifications: a 10.25% spread between Scientist 1 and Scientist 2, and a 21.75% spread between Scientist 2 and Senior Scientist. The LOU resulted from continued negotiations after the July 2025 MOU. No public comment. Motion by Director Rodriguez, second by Robles, approved.

Item 13 – 2026 Long-Term Financial Plan and Capital Funding Projection (FY 2026-27 through 2035-36)

• Tepa Banda, Director of Finance, presented the plan. Key points: The district is in strong financial condition with AA+ and AAA ratings. Growth in equivalent single-family dwelling units has averaged ~1% annually. The capital program includes $237 million for the collection system (first 5 years $190M) and $1.14 billion for treatment/resource recovery (first 5 years ~$938M). Major projects include the Rio Linda Relief ($22M), Adam Gord Relief (~$29M), North Area Copiad rebuild ($46M), East Rancho Cordova interceptor ($118M), lower central interceptor ($85M), and biosolids projects. The district reduced projected borrowing from over $400M to under $200M due to grants and cost efficiencies. Rate increases are still anticipated but smaller than prior projections.
• Board Discussion: Director Dickinson raised concerns about cybersecurity and AI as omitted critical issues. Tepa Banda and Matt Doyle acknowledged the omission and noted ongoing efforts (AI committee, cybersecurity officer). Director Dickinson also asked about the process for reviewing project necessity and cost reduction. Tepa Banda described lifecycle extension, alternative evaluation, vendor competition, and grant-seeking. Director Dickinson suggested future presentations include these steps. Director Hume commended the team for financial management. Director Rodriguez praised the improved cash position and reduced debt. The capital funding projection was approved by motion (Dickinson, second Hume) with no public comment.

Item 14 – Harvest Water Quarterly Report (April 1 – June 30, 2026)

• Mike Crooks (Capital Program Manager) and Joe Phil Borja (APMO) presented. Pipeline construction is complete; pump station at Echo Water facility is progressing but pump delivery has slipped to February 2027, pushing commissioning to April-May 2027. On-farm connection assemblies: Phase 1 (56 sites) and Phase 2 (35 sites) are under construction by Ranger Pipelines. Construction budget $323M, spent $261M, change order rate holding at 6.6%. Potential additional growers may be added via change order.
• Joe Phil Borja covered administrative updates: community outreach, ecological monitoring (vernal pools, CRAM), groundwater well installations (7 new wells in August 2026), and grant funding. Total budget: APMO $120M (spent $20.1M), CPMO $477.2M (spent $328.4M). Grants received include $218.5M from Prop 1/Prop 4, $30M federal WIN grant, $15M state WRFP phase 1, plus others. Funding gap estimated at $113.7M. The project is 80% grant-funded. Demand goal is 39,000 acre-feet per year for summer irrigation (contractual minimum 32,500 AFY), with additional delivery capacity up to 50,000 AFY for winter eco-plan use.
• Board Questions: Director Hume asked about the relationship between the 39,000 AFY demand goal and the 50,000 AFY capacity. Joe Phil explained that 39,000 is the peak summer irrigation target, while 50,000 includes winter eco-plan deliveries. Director Rodriguez asked about serving future data centers; Joe Phil stated water rights currently limit use to agriculture. Director Dickinson asked how many more growers are needed to reach 39,000 AFY; Joe Phil estimated 4-5 growers could provide 2,000 AFY each, plus additional smaller growers. No vote required (informational).

Key Outcomes

• Consent agenda (Items 1-8) approved unanimously.
• Item 11 (eminent domain) continued to October 14, 2026, with unanimous vote.
• Item 12 (LOU with PEA) approved unanimously.
• Item 13 (long-term financial plan and capital funding projection) approved unanimously.
• Next board meeting scheduled for October 14, 2026, at the Gaiti facility (location change).

Note: No public comments were made for any agenda item.