Carmichael Water District and Sacramento Suburban Water District Combination Study
Carmichael Water District (CWD) and Sacramento Suburban Water District (SSWD) commissioned a study that explores combination opportunities. The goal is to examine how combining the two neighboring water utilities might encourage efficiencies, reduce costs, improve water supply reliability, and enhance customer service.
Background
The study is part of an ongoing exploratory process that grew from a Sacramento Regional Water Utility Collaboration Study initiated in 2020, in which CWD and SSWD participated with five other regional water providers. The CWD and SSWD Boards of Directors decided to continue exploring the possibility of increased collaboration and created a committee comprised of Board members from both water utilities. The Committee began meeting in July 2021, and in 2022 retained an independent financial consulting firm that specializes in working with government agencies and utilities, to conduct a Combination Study Business Case Analysis.
Content
The study explores trends in the water industry and community, such as changing water demand, pressure to keep rates affordable, regulatory change, water supply reliability, expansion to meet regional needs, and the feasibility for addressing those trends through combination. The analysis includes a top-to-bottom review of both water providers, including a comparison of organizational structures, management, customer services, billing, staffing, water treatment operations, capital improvement projects, and finances. The analysis details the benefits and costs of potential combination, as well as options for next steps.
Status
The CWD and SSWD Boards of Directors have reviewed the report and considered the report as complete. Both Boards have directed their respective staffs to do additional detailed analysis on financial, technical, and operational issues and questions raised during the study’s initial review. Ultimately, any decisions about moving forward will occur after a deliberative, public process with exploring additional investigation and both districts are committed to provide opportunities for public input throughout the entire process.
Stay Updated and Share Your Thoughts
You are welcome to attend public meetings discussing combination opportunities. You can review the meeting information and agenda on our Agendas & Meetings page.
- Why did CWD and SSWD initiate a study to explore potential combination opportunities?
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The water industry and our communities are facing several changes and challenges, including the projected impacts of climate change on our water supplies and increasing regulations that will potentially make it difficult to keep rates affordable. The goal in initiating this independent study is to explore how combining our two neighboring water utilities might encourage efficiencies, reduce costs, improve water supply reliability and enhance customer service.
- What does the study examine?
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The study explores trends in the water industry and our communities, such as changing water demand, pressure to keep rates affordable, regulatory change, water supply reliability, and expansion to meet regional needs, and the feasibility for addressing those trends through combination. The analysis included a top-to-bottom review of both water providers, including a comparison of organizational structures, management, customer services, billing, staffing, water operations, capital improvement projects, finances, and water supply. The analysis detailed the benefits and costs of potential combination, as well as options for next steps.
- Who was involved in shaping the study?
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The study was developed with input from the CWD and SSWD Boards of Directors and staff. Staff provided input as part of the 2020 Sacramento Regional Water Utility Collaboration Study (conducted by CWD, SSWD, and five other water providers), which was used as a foundation for the current study.
Customer input avenues have occurred through public meetings of the CWD/SSWD 2x2 Committee, which includes leadership and management from both water providers and has been hosting public meetings since July 2021, and regular Board meeting updates.
- When was the draft study released?
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A draft of the Draft Business Case Study was released October 10, 2022, and is available in our Agenda Center.
- What happens after the report is delivered to SSWD and CWD?
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The CWD/SSWD 2x2 Committee and the CWD and SSWD Boards of Directors have both reviewed the study and are considering the study is complete. The CWD and SSWD Board of Directors have also directed their staffs to begin a detailed technical analysis of questions and issues raised by the initial study.
After the technical study is completed and reviewed, the Boards of Directors will then determine whether to continue exploring combination opportunities, utilizing the information and data developed by the studies, as well as public and staff input, for continued conversations.
- Who paid for the study?
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The costs were shared equally by CWD and SSWD.
- How are CWD and SSWD being thoughtful in exploring combination opportunities?
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CWD and SSWD are taking care to undergo a deliberative, public process to explore combination opportunities. To date, this has included public discussions since July 2021 through the CWD/SSWD 2x2 Committee, which includes leadership and management from both water providers, and regular Board meeting reports.
The districts also retained an independent financial consulting firm that specializes in working with government agencies and utilities, to conduct an independent, third-party analysis to explore combination opportunities. The financial consulting firm finalized a study that has been reviewed by both Boards of Directors. Any decisions to move forward will be made after an open process that explores the study’s findings and provides opportunities for input.
- How can I find out more?
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You are invited to attend Board meetings and CWD/SSWD 2x2 Committee meetings discussing combination. Agendas and details on how to attend are available in our Agenda Center.