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.

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