SacSewer defers $175M bond refunding and $3M chemical budget fix after quorum failure

SacSewer defers $175M bond refunding and $3M chemical budget fix after quorum failureThe Sacramento Area Sewer District was forced to cancel its April 8 meeting, delaying votes on a major debt restructuring and an appropriation to cover a 59% surge in chlorine prices.

The April 8 board meeting was adjourned shortly after roll call due to a lack of quorum, deferring all agenda items.

Delayed items include the issuance of up to $175 million in refunding bonds to restructure 2010A and 2015 collection system debt.

The board also postponed a $3 million appropriation request needed to cover an unexpected mid-year shortfall in the Treatment and Resource Recovery operating budget.

The budget gap stems from a new chlorine contract with Univar Solutions at $3.25 per gallon, a 59% increase over the previous supplier's rate.

The Sacramento Area Sewer District (SacSewer) was forced to cancel its April 8, 2026, board meeting after failing to reach a quorum, delaying action on several major financial and operational items. Following a brief recess after roll call, the meeting was adjourned with all substantive agenda items deferred. The board's next regular meeting is scheduled for May 13, as members noted that scheduling an earlier alternative date would be difficult due to council members and county supervisors traveling to Washington, D.C. The most significant deferred item is the authorization to issue up to $175 million in refunding bonds. The issuance is intended to refund the district's Collection System Series 2010A Build America Bonds and 2015 revenue bonds. According to the staff report, restructuring the 2010A debt would allow SacSewer to eliminate federal sequestration risks associated with direct subsidies and replace them with bonds featuring a regular call feature. Also delayed was a $3 million appropriation adjustment to address a shortfall in the Treatment and Resource Recovery operating budget. SacSewer faced an unexpected mid-year cost increase after its previous sodium hypochlorite provider, Thatcher Group, Inc., ceased manufacturing. The district subsequently awarded a new two-year contract to Univar Solutions at $3.25 per gallon—a 59% spike from the previous $2.05 per gallon rate. The $3 million adjustment will be transferred from the capital fund, which has available capacity due to construction delays on the BioGeneration Facility project. Other deferred items include a $152,808 change order for the Supplemental Biosolids Harvest Site Preparation Project to cover additional electrical and excavation work, a 3.3% cost of labor adjustment for district employees, and proposed adjustments to collection system sewer impact fees and liquid waste hauler billing rates.