City of Sacramento
Personnel and Public Employees Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00357 2/4/2025 Discussion Item 5.
City of Sacramento Utilities Rate Advisory Commission 2024 Annual Report and 2025 Work Plan
File ID: 2025-00357
Location: Citywide
Recommendation: Review and provide direction on the 2024 Annual Report and 2025 Workplan for the Utilities Rate Advisory Commission and pass a Motion either:
1) directing staff to forward the Annual Report and Workplan to the City Council for review; or 2) directing staff to update the Annual Report and Workplan based on Personnel and Public Employee Committee recommendations and forward to the City Council for review; or 3) asking the Utilities Rate Advisory Commission to update the Annual Report and Workplan based on Personnel and Public Employee Committee recommendations and go back to the Personnel and Public Employee Committee for additional review.
Contact: Jordan Bird, Administrative Analyst, (916) 808-1778, [email protected], Department of Utilities
Presenter: Jordan Bird, Administrative Analyst, (916) 808-1778, [email protected], Department of Utilities
Attachments:
1-Description/Analysis
2-URAC 2024 Annual Report and 2025 Work Plan
Description/Analysis
Issue Detail: Advisory bodies of the City are required to provide an annual report and work plan for review by the Personnel and Public Employees (P&PE) Committee as outlined in the City Council Rules of Procedure, Chapter 17. The P&PE Committee shall review advisory body annual reports and give staff direction on those reports’ stated projects, priorities, and recommendations. Before forwarding the report to the City Council, the Committee may request supplemental information from staff or the advisory body.
The attached Annual Report and Workplan is being presented to the P&PE Committee for consideration.
File ID: 2025-00357 2/4/2025 Discussion Item 5.
Policy Considerations: Chapter 17 of the Council Rules of Procedure outlines the Advisory Body reporting process.
Economic Impacts: Not Applicable.
Environmental Considerations:
California Environmental Quality Act (CEQA): This action is not a project that is subject to CEQA because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines §15378(b)(5)).
Sustainability: Not Applicable.
Commission/Committee Action: On October 23, 2024, the Utilities Rate Advisory Commission passed a motion forwarding their Annual Report and Workplan to the P&PE Committee for consideration.
Rationale for Recommendation: So that advisory bodies may effectively incorporate their important role, voice, and work to provide thoughtful community recommendations to the City Council on a consistent basis, the P&PE Committee shall facilitate the process for advisory bodies to communicate their accomplishments, projects, priorities, and recommendations to the City Council.
Financial Considerations: Not Applicable.
Local Business Enterprise (LBE): Not Applicable.
Sacramento Utilities Rate Advisory Commission Annual Report Page 1 of 9
Sacramento Utilities Rate
Advisory Commission
Annual Report
January 2024 through December 2024
Sacramento Utilities Rate Advisory Commission Annual Report Page 2 of 9
Table of Contents
Introduction: Establishment, Commissioners, and Staff ........................................................................... 3 Purpose, Powers and Duties of Utilities Rate Advisory Commission .................................................. 5 Message from the Utilities Rate Advisory Commission Staff ................................................................. 5 Key Accomplishments ..................................................................................................................................... 6 A. May 22nd Meeting Accomplishments ............................................................................................ 6 B. August 28th Meeting Accomplishments ....................................................................................... 6 C. October 23rd Meeting Accomplishments .................................................................................... 7 Commission Resources Expended ............................................................................................................... 7 Workplan for Upcoming Year ....................................................................................................................... 8 A. Goal 1 ................................................................................................................................................. 8 B. Goal 2 ................................................................................................................................................. 8 2025 Workplan Calendar ............................................................................................................................... 9
Sacramento Utilities Rate Advisory Commission Annual Report Page 3 of 9
Introduction: Establishment, Commissioners, and Staff
The Sacramento Utilities Rates Advisory Commission (URAC) was established in 20 08 by ordinance (Ord. 2008-001 § 1) and was codified in Sacramento City Code, Title 13 PUBLIC SERVICES, Chapter 13.02 UTILITIES RATE ADVISORY COMMISSION, Section 13.02.010 Establishment of commission.
The URAC was created to provide community participation in the rate setting process. The commission consists of seven members which have been nominated by the Personnel and Public Employees Committee and app ointed by the mayor with the concurrence of a majority of the City Council. Each board seat on the commission has its own appointment selection criteria, which include elements such as being a city resident, owning a utility rate paying business, owning a single-family residence that receives utility service, and expertise in a re levant discipline (e.g., engineering, law, or water quality). Commission board members serve a term of four years, and no member shall serve for more than two consecutive terms. Terms are staggered to arrange that the commission can continuously retain some experienced commissioners.
The URAC meets four times a year with meetings lasting up to two hours. However, URAC workplans and agendas vary considerably depending on whether the commission is involved in an active rate adjustment cycle. During the rate setting process, the URAC may meet more frequently to engage in rate workshops and relate d activities. Such a series of workshops is designed to explain the purpose, requirements, and details of the rate adjustment. In a non -rate planning year, the work plan is primarily focused on ed ucating the commission about the Department of Utilities business needs and challenges and updates from the Department of Public Works, Recycling and Solid Waste Division (RSW). The DOU Executive Team and staff from RSW prioritize policy items that will guide the work for each year. The DOU and RSW also provide the commission with an electronic binder that contains a wide variety of documents offering a comprehensive overview of each operation. The binder includes the most updated information on rate studies, budgets, audited financials, fiscal policies, debt management, capital improvement programs, Prop 218 requirements, and more. In addition to the DOU and RSW priorities, Commissioners can recommend their own agenda items.
Commission Ordinance Changes
On September 24, 2024, the City Council approved an ordinance amending, deleting and adding various chapters of the Sacramento City Code relating to the City of Sacramento Boards, Commissions, and Committees. The changes included increasing the number of URAC seats from 7 to 11. In addition, this ordinance will make 8 seats directly Council appointed, 1 Mayor appointed, and 2 remaining P&PE appointed. City code related to URAC has been reorganized under Title 2 – Chapter 2.40 Boards and Commissions Generall y. In addition, most currently seated commissioners’ terms are designated to be extended, subject to a hearing by the City Council on October 15, 2024.
Sacramento Utilities Rate Advisory Commission Annual Report Page 4 of 9
Current Sacramento URAC Commissioners
The following commissioners are currently serving on the commission.
Seat Name Term Expires
Seat A (Vacant)
Seat B Jill Zito 1/30/2025
Seat C Spencer Thomas Eberle 1/1/2027
Seat D (Vacant)
Seat E Lara Pucik Johnson 1/1/2027
Seat F Tiffany Tran 1/1/2028
Seat G (Vacant)
Previous Commissioners
The following commissioners resigned or reached term expiration during 2024.
• Kyson Huang – resigned 7/29/24
• Megan Fidell – term expired 6/30/24
• Melissa Lee – term expired 6/30/24
• Nicolai Dmitiry Ellis – resigned 6/18/24
Sacramento URAC Staff
The commission is supported primarily by the following staff members.
• Jordan Bird, Administrative Analyst, Department of Utilities – Long-Range Financial Planning
• David Levine, Program Manager, Department of Utilities – Long-Range Financial Planning
Sacramento URAC Staff Contact Information
City of Sacramento – Department of Utilities
1395 35th Avenue – Sacramento, CA 95814
[email protected]
(916) 808-1778
https://www.cityofsacramento.gov/utilities
Sacramento Utilities Rate Advisory Commission Annual Report Page 5 of 9
Purpose, Powers and Duties of Sacramento Utilities Rate Advisory Commission
Purpose of the Sacramento Utilities Rate Advisory Commission The purpose of the commission is to serve as an advisory body providing advice and recommendations to the mayor and city council on the city's utility service rates. 2.88.020 Purpose of commission (amlegal.com).
Powers and Duties of the Sacramento Utilities Rate Advisory Commission
The powers and duties of the commission shall be as follows:
2.88.030 Powers and duties of commission (amlegal.com).
A. Review and comment on proposals made by the department for changes to the utility service rates.
B. Develop and provide recommendations to the mayor and city council on issues relevant to the setting of the utility service rates, provided that the commission shall have no authority to review or revise the utility service levels.
C. Beginning on January 1, 2009, hold rate hearings on proposals made by the department to increase the utility service rates or establish new utility service rates for property related services furnished by the department, and, upon conclusion of the hearing, provide recommendations to the mayor and city council on such proposals. In the preceding sentence, "rate hearings" means the public hearings: (1) required when a local government agency proposes to impose or increase any user fee or charge for a property related service, pursuant to subdivision (2) of Section 6 of Article XIII D of the California Constitution; and (2) held pursuant to Section 3.44.100 of this code.
D. Act as a liaison to encourage community understanding of, and participation in, the utility service rate setting process. (Ord. 2008-001 § 1)
Message from the Sacramento Utilities Rate Advisory Commission City Staff The past year has included the onboarding of several new commissioners and the election of a new chair for the commission. Since this was a non -rate adjustment year , the DOU and RSW focused its time and efforts on educating the commissioners about key operational and infrastructure needs that will help support future discussions about necessary rate adjustments.
Sacramento Utilities Rate Advisory Commission Annual Report Page 6 of 9
Key Accomplishments
This report will cover the period January 2024 through December 2024.
In 2024 the URAC reviewed, commented, and/or passed motions on the following topics:
A. Meeting on March 27, 2024, was canceled.
B. At the meeting on May 22, 2024:
• DOU FY23 & FY24 Financial Highlights
o Reviewed the changes in fund balance for the Water Fund, Wastewater Fund, Storm Drainage Fund, and the more recently instantiated Storm Drainage Property Fee Fund.
o Reviewed changes in DOU reserve policies and reserve fund balances • Election of new URAC chair and vice chair
o Jill Zito was elected as chair to replace the outgoing chair, Megan Fidell. o Spencer Eberle was elected as vice chair.
C. At the meeting on August 28, 2024:
• Deferred Maintenance Progress Report
o Presented an summary of the Department of Utilities’ deferred maintenance needs for infrastructure investment, the progress that has been made in Fiscal Year 2023-2024, and the projects planned for Fiscal Year 2024-2025. o Reviewed estimated $2.2 billion in deferred asset investment across the department’s water, wastewater and storm drainage systems including backlog of vital repairs and upgrades.
• DOU Overview
o Provided summary overview of the entire DOU infrastructure , system, and staff divisions.
o Reviewed the DOU’s mission, vision, and values: customer service, employees, integrity, communication, innovation.
o Considered the impact of increasing regulations and the need for diverse funding sources.
• DOU Financial Update – FY25 Budget & FY24 Year-End Projections o Reviewed the follow ing financial updates: Fiscal Year (FY) 2023/24 Yearend Update By Enterprise Fund, FY 2024/25 Adopted Budget Update, Five Year Forecasts by Fund, Days of Working Capital, Sacramento Utility Rate Assistance (SURA) Program Update
• Recycling & Solid Waste (RSW) Presentation
o Summary of the rates charged by RSW , recent accomplishments, services provided, including the enhanced procedures associated with the organics waste diversion processes.
Sacramento Utilities Rate Advisory Commission Annual Report Page 7 of 9
D. At the meeting on October 23, 2024:
• DOU 2020-2025 Strategic Plan Progress Report
o Examined the progress that has been made on the implementation plan DOU’s organization performanc e, public trust, reliabilit y, financial viabilit y, sustainability goals.
• URAC Workplan/Annual Report
o Reviewed the highlights and accomplishments of 2024 and considered plans for 2025, including the upcoming meeting calendar and topics to be discussed.
Commission Resources Expended
In 2023 we held five meetings and in 2024 we held three meetings. Below is a breakdown of expenditures made to support the commission during this review period.
The estimated cost to support the Sacramento URAC in 2023 was $51,480.
The estimated cost to support the Sacramento URAC in 2024 was $52,926.
The estimated cost per meeting in 2024 is as follows:
Meetings Hours Rate Total
Staff report creation and review – department staff 3 115 $117 $40,365 Staff report review – city attorney staff 3 3 $216 $1,944 Agenda review, preparation, and publishing – city clerk 3 10 $35 $1,050 Meeting presentation preparation 3 2 $117 $702
Meeting attendance – department staff 3 12 $117 $4,212
Meeting attendance – city attorney staff 3 2 $216 $1,296 Meeting attendance – city clerk staff 3 4 $58 $696
3 Meeting attendance – IT staff 3 4 $53 $636
Meeting attendance – building security 3 4 $33 $396
Post meeting tasks: minutes, legislative document processing, attendance tracking
3 5 $35 $525
Commissioner stipend processing (quarterly) 12/year $42 $504 Commissioner stipends (7 commissioners) 7 5 $50 $600
Total Meetings Cost $52,926
Additional Expenditures:
Besides staff time, there were no additional expenditures for the commission in 2023 or 2024.
Sacramento Utilities Rate Advisory Commission Annual Report Page 8 of 9
Workplan for Upcoming Year
The goals for the URAC are outlined below , with some background details, in addition to the expected cost to achieve each goal. On the following page is a full 2025 agenda calendar for the URAC, which specifies the information, and presentations that will be provided in supporting the commission’s goals in 2025. It also shows which DOU divisions, or Public Works – Recycling Solid Waste (RSW), will be preparing reports or presenting.
A. Goal 1: Continue examining topics to help prepare the commission to make responsible utilities rate recommendations . That includes gaining a deeper understanding of the financial, infrastructure, and regulatory factors that are affecting the DOU and RSW. The success of these efforts will be determined by the effectiveness with which the commission and the public at large have been informed about each operation’s purpose, impact, and requirements at the time of a rate adjustment proceeding.
1. Details: The main action items and topics that will be discussed next year are the following:
• Water Planning Efforts - River Arc/Water+
• Water/Wastewater Fund Review
• DOU Financial Update
• RSW Financial Update
• URAC Workplan and Annual Report
• Water/Wastewater rate development update
2. Cost: This is estimated to account for 75% of commission staff time in the upcoming year. Based on 2024 costs, $39,695 is projected to be expended on this goal.
B. Goal 2: Receiving new commissioners and onboarding them to the commission.
1. Details: As of October 2024, t he commission has 3 vacancies out of 7 seats and impending changes to City ordinance will raise the number of vacancies to 7 out of 11 seats. We can expect the majority of the commission to be new in 2025 and that presents an opportunity to begin a foundational orientation to DOU and RSW. We may review or revisit some of the DOU’s and RSW’s most significant recent activity, to ensure that all commissioners are aware of the progress that has been achieved and the challenges that continue to be addressed.
2. Cost: This is estimated to account for 25% of commission staff time in the upcoming year. Based on 2024 costs, $13,232 is projected to be expended on this goal.
Sacramento Utilities Rate Advisory Commission Annual Report Page 9 of 9
2025 Agenda Calendar for URAC Workplan [Tentative Calendar]
March - Wednesday, 26th
1 2
3 June - Wednesday, 25th
1 2
August - Wednesday, 27th
1 2
3 4
October - Wednesday, 29th
1 2
3 ITEM NAME DIVISION DESCRIPTION POC
DOU Overview Presentation DOU – Office of Director Informational / Discussion Pravani Vandeyar, Director, (916) 808-3765, [email protected] Department of Utilities
Water Planning Efforts - River Arc/Water+ DOU – Engineering & Water Resources
Informational / Discussion Jordan Bird, Administrative Analyst, (916) 808-1778, [email protected], Department of Utilities
ITEM NAME DIVISION DESCRIPTION POC
Department of Public Works, Recycling and
Solid Waste Division Update Presentation
Public Works Informational / Discussion Tyler Stratton, Administrative Officer, (916) 808-1284, [email protected], Department of Public Works
Department of Utilities Financial Update – FY26
Budget; FY25 year-end projections
DOU – Business Services Informational / Discussion Penny Buchman, Supervising Financial Analyst, (916) 808-1481, [email protected] Department of Utilities
Deferred Maintenance Update DOU – Engineering & Water
Resources
Informational / Discussion Sherill Huun, Engineering Manager, (916) 808-1455, [email protected] Department of Utilities
Topics for 2026 URAC Meetings DOU – Business Services Informational / Discussion Jordan Bird, Administrative Analyst, (916) 808-1778, [email protected], Department of Utilities
ITEM NAME DIVISION DESCRIPTION POC
Water/Wastewater Rate Development Update DOU – Office of Director Informational / Discussion Pravani Vandeyar, Director, (916) 808-3765, [email protected] Department of Utilities
2026 URAC Workplan DOU – Business Services Pass a motion to approve the 2026 URAC Workplan and forward to Personnel & Public Employees Committee
Jordan Bird, Administrative Analyst, (916) 808-1778, [email protected], Department of Utilities
Long Term Control Plan DOU – Engineering & Water
Resources
Informational / Discussion Sherill Huun, Engineering Manager, (916) 808-1455, [email protected] Department of Utilities
ITEM NAME DIVISION DESCRIPTION POC
Election of new of Utilities Rate Advisory
Commission Chair
Clerk’s Office Pass a motion to elect Utilities Rate Advisory Commission Chair for 2025 calendar year
Jordan Bird, Administrative Analyst, (916) 808-1778, [email protected], Department of Utilities
Election of Utilities Rate Advisory Commission
Vice Chair
Clerk’s Office Pass a motion to elect Utilities Rate Advisory Commission Vice Chair for 2025 calendar year
Jordan Bird, Administrative Analyst, (916) 808-1778, [email protected], Department of Utilities
Water / Wastewater Fund Review DOU – Office of Director Informational / Discussion Pravani Vandeyar, Director, (916) 808-3765, [email protected] Department of Utilities