Board of Public Utilities

Council Chamber City of Santa Rosa 100 Santa Rosa Avenue Board of Public Utilities Regular Meeting Minutes - Final Thursday, April 16, 2020 1:30 PM 1. CALL TO ORDER AND ROLL CALL Chair Galvin called the meeting of the Board of Public Utilities to order at approximately 1:30 p.m. Present 7 - Chair Daniel Galvin III, Vice Chair William Arnone Jr., Board Member Lisa Badenfort, Board Member Christopher Grabill, Board Member David Bannister, Board Member Mary Watts, and Board Member Glen Wright 2. STATEMENTS OF ABSTENTION BY BOARD MEMBERS No statements of abstention were made by Board members. 3. STUDY SESSION 3.1 FY 2020/21 WATER AND LOCAL WASTEWATER FUNDS OPERATION, MAINTENANCE AND CAPITAL EXPENDITURE REQUESTS Santa Rosa Water manages the City of Santa Rosa’s water and wastewater enterprise funds under the general policy authority and direction of the Board of Public Utilities (BPU) per the City Charter. The BPU annually recommends a proposed fiscal year water and wastewater budget to the City Council to be included in the annual City budget adoption. The water and wastewater funds are primarily financed by Santa Rosa ratepayer user fees and charges. Water rates approved by the Santa Rosa City Council, including a fixed charge increase of 5% and a wholesale water rate pass-through increase of approximately 2.3% (for a combined water rate increase of approximately 2.9% for most customers), combined with the use of current fund balances, are considered sufficient to fund the prudent operation of the water system in 2020/21. The authorized 2.5% wastewater usage and fixed rate increase are considered sufficient to fund the prudent operation of the wastewater system and Santa Rosa’s share of the Regional system and City of Santa Rosa Regular Meeting Minutes Page 2 of 5 Board of Public Utilities Regular Meeting Minutes - Final April 16, 2020 maintain appropriate debt service ratios through 2020/21. The Board may discuss this item and give direction to staff. Attachments: Staff Report Attachment 1 Presentation (added 4/15/20) Presenter(s): Kimberly Zunino, Deputy Director Water Administration. 4. MINUTES APPROVAL 4.1 February 20, 2020 - Regular Meeting Minutes. Attachments: February 20, 2020 - Regular Meeting Minutes (added 4/15/20) The minutes of February 20, 2020 were accepted as submitted. 5. STAFF BRIEFINGS - NONE. 6. CONSENT ITEMS - NONE. 7. REPORT ITEMS 7.1 REPORT - FY 2020/21 REGIONAL WATER REUSE SYSTEM OPERATING AND MAINTENANCE, CAPITAL IMPROVEMENT PROGRAM, AND DEBT SERVICE BUDGET AND ALLOCATION OF COSTS BACKGROUND: Santa Rosa Water manages the City of Santa Rosa’s regional, local wastewater and water enterprise funds under the general policy authority and direction of the Board of Public Utilities (BPU) per the City Charter. The BPU annually recommends a proposed fiscal year regional, local wastewater and water budget to the City Council to be included in the annual City budget adoption. RECOMMENDATION: It is recommended by the Water Department, the Regional Water Reuse System Technical Advisory Committee that the Board of Public Utilities, by resolution, recommend that the City Council approve the Preliminary FY 2020/21 Regional Water Reuse System Operating and Maintenance, Capital Improvement, and Debt Service Budget and Allocation of Costs for the purpose of notifying the participating Regional Water Reuse User Agencies of their allocation of such by May 2020. City of Santa Rosa Regular Meeting Minutes Page 3 of 5 Board of Public Utilities Regular Meeting Minutes - Final April 16, 2020 Attachments: Staff Report Resolution Presentation Presenter(s): Kimberly Zunino, Deputy Director Water Administration. A motion was made by Vice Chair Arnone, Jr., seconded by Board Member Grabill to approve Item 7.1 - RESOLUTION NO. 1215 ENTITLED "RESOLUTION OF THE BOARD OF PUBLIC UTILITIES RECOMMENDING THAT THE SANTA ROSA CITY COUNCIL APPROVE THE PRELIMINARY FISCAL YEAR 2020/21 REGIONAL SYSTEM OPERATING AND MAINTENANCE, CAPITAL IMPROVEMENT PROGRAM, AND DEBT SERVICE BUDGET AND ALLOCATION OF COSTS". The motion carried by the following vote: Yes: 7 - Chair Galvin III, Vice Chair Arnone Jr., Board Member Badenfort, Board Member Grabill, Board Member Bannister, Board Member Watts and Board Member Wright 8. PUBLIC COMMENTS ON NON-AGENDA MATTERS NONE. 9. REFERRALS NONE. 10. WRITTEN COMMUNICATION (AND POSSIBLE BOARD DISCUSSION) NONE. 11. SUBCOMMITTEE REPORTS NONE. 12. BOARD MEMBER REPORTS Chair Galvin reported that it was Board member Bannister's last meeting because he has resigned to take a new job. Council member Dowd has appointed Matt Mullan to replace him. Mr. Mullan will be sworn in at the next Board meeting. Board member Bannister expressed appreciation of staff and his fellow board members for their service on the board. 13. DIRECTORS REPORTS City of Santa Rosa Regular Meeting Minutes Page 4 of 5 Board of Public Utilities Regular Meeting Minutes - Final April 16, 2020 Jennifer Burke, Director also thanked Board member Bannister for his service on the Board. She then provided an update on the staff response and essential services being provided; and gave an update on the Llano Trunk repair project and expressed appreciation of the CIP staff who keep the critical project moving forward. She explained that outreach continues regarding the use of wipes and proper disposal; and noted May is Water Awareness Month. 14. ANNOUNCEMENT OF CLOSED SESSION ITEM(S) AND ADJOURNMENT TO CLOSED SESSION Molly MacLean, Assistant City Attorney announced closed session item 14.1 and noted that item 14.2 would not be heard during the closed session. The Board adjourned to closed session at 2:38 p.m. 14.1 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section 54956.9: Potential Number of Cases: One. 14.2 CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Government Code Section 54956.8) Property: None, Sonoma CA 95476, APN’s 128-491-013, 014 and 015 Agency Negotiator: Jill Scott, Real Property Negotiator Negotiating Parties: William A & E Cecile Kiser Trust Et AL Under Negotiations: Price and terms of payment. 15. ADJOURN TO OPEN SESSION AND ANNOUNCEMENT OF CLOSED SESSION ACTION, IF ANY. At 3:46 p.m., Board Secretary Perez took a verbal roll call to confirm a quorum for open session. All Board members were present with the exception of Board member Grabill. Assistant City Attorney MacLean announced that there was no action to report from closed session. 16. ADJOURNMENT OF MEETING Chair Galvin adjourned the meeting at 3:48 p.m in honor of Board member Bannister. The next regular scheduled meeting of the City of Santa Rosa Regular Meeting Minutes Page 5 of 5 Board of Public Utilities Regular Meeting Minutes - Final April 16, 2020 Board of Public Utilities will be held on June 18, 2020. Approved on: June 18, 2020 _________/S/_____________ Gina Perez, Recording Secretary