Board of Public Utilities

City Council Chamber City of Santa Rosa 100 Santa Rosa Avenue Board of Public Utilities Meeting Minutes - Final Thursday, May 6, 2021 1:30 PM 1. CALL TO ORDER AND ROLL CALL Chair Galvin called the meeting to order at approximately 1:30 p.m. Present 5 - Chair Daniel Galvin III, Board Member Lisa Badenfort, Board Member Christopher Grabill, Board Member Mark Walsh, and Board Member Glen Wright Absent 2 - Vice Chair William Arnone Jr., and Board Member Mary Watts Chair Galvin announced the agenda would be re-ordered due to some issues with Board Member availability. 7. REPORT ITEMS 7.1 REPORT - REQUESTING COMMUNITY-WIDE 20% REDUCTION OF WATER USE THROUGH VOLUNTARY WATER CONSERVATION MEASURES - RECOMMENDATION TO CITY COUNCIL BACKGROUND: The Russian River Watershed is experiencing record low rainfall and extremely dry conditions for the second year in a row. Santa Rosa Water purchases approximately 95% of our water supply from Sonoma Water. Sonoma Water’s two reservoirs, Lake Mendocino and Lake Sonoma, are at the lowest levels ever recorded for this time of year. On April 21, 2021, the Governor of California declared a drought emergency in Sonoma and Mendocino Counties related to the existing conditions in the Russian River Watershed. On May 3, 2021 the Water Advisory Committee to Sonoma Water adopted a resolution requesting the Sonoma Water Contractors voluntarily reduce water use by 20% over 2020 levels. Santa Rosa Water continues to participate in a regional outreach campaign to increase water use efficiency awareness and help customers achieve water savings. RECOMMENDATION: It is recommended by Santa Rosa Water staff that the Board of Public Utilities, by resolution, recommend that the City Council adopt a resolution requesting water customers reduce their water use by 20% through voluntary conservation measures. Attachments: Staff Report Attachment 1_WAC Draft Resolution BPU Resolution 1255 Presentation (added 5/5/21) City of Santa Rosa Meeting Minutes Page 2 of 6 Board of Public Utilities Meeting Minutes - Final May 6, 2021 Presenter: Peter Martin, Deputy Director - Water Resources A motion was made by Board Member Wright, seconded by Board Member Badenfort, to approve Item 7.1 - RESOLUTION NO. 1255 ENTITLED "RESOLUTION OF THE BOARD OF PUBLIC UTILITIES RECOMMENDING THAT THE COUNCIL OF THE CITY OF SANTA ROSA REQUEST CUSTOMERS REDUCE WATER USE BY 20% THROUGH VOLUNTARY CONSERVATION MEASURES." The motion carried by the following vote: Yes: 5 - Chair Galvin III, Board Member Badenfort, Board Member Grabill, Board Member Walsh and Board Member Wright Absent: 2 - Vice Chair Arnone Jr. and Board Member Watts 2. STATEMENTS OF ABSTENTION BY BOARD MEMBERS There were no Statements of Abstention from Board Members. 6. CONSENT ITEMS 6.1 RESOLUTION - APPROVAL - FOURTH AMENDMENT TO GENERAL SERVICES AGREEMENT F001673 LANDSCAPE MAINTENANCE SERVICES RECOMMENDATION: It is recommended by the Finance and Water Departments that the Board of Public Utilities, by resolution, approve the Fourth Amendment to General Service Agreement F001673 for a one-year extension with a 3% increase in unit cost, adding, changing, and removing locations, and increasing compensation with New Image Landscape Company, Fremont, California, to provide landscape maintenance services, as required by the Water Department, for the total amount not to exceed $340,000, for a cumulative total not to exceed $1,406,840. Attachments: Staff Report BPU Resolution 1253 Exhibit A_Fourth Amendment A motion was made by Board Member Wright, seconded by Board Member Walsh, to approve Item 6.1 - RESOLUTION NO. 1253 ENTITLED "RESOLUTION OF THE BOARD OF PUBLIC UTILITIES APPROVING THE FOURTH AMENDMENT TO GENERAL SERVICES AGREEMENT F001673 WITH NEW IMAGE LANDSCAPING COMPANY." The motion carried by the following vote: Yes: 5 - Chair Galvin III, Board Member Badenfort, Board Member Grabill, Board Member Walsh and Board Member Wright Absent: 2 - Vice Chair Arnone Jr. and Board Member Watts 6.2 RESOLUTION - RESOLUTION OF THE BOARD OF PUBLIC UTILITIES City of Santa Rosa Meeting Minutes Page 3 of 6 Board of Public Utilities Meeting Minutes - Final May 6, 2021 APPROVING THE ACQUISITION OF 7700-7750 LAKEVILLE HWY AND LEASE BACK OF 13.6 ACRES, DELEGATION OF SIGNING AUTHORITY TO THE ASSISTANT CITY MANAGER OVER THE OPERATIONS PORTFOLIO AND ADOPTION OF A MITIGATION MONITORING PROGRAM RECOMMENDATION: It is recommended by the Real Estate Manager and Water Department that the Board of Public Utilities, by resolution, approve the acquisition of 7700-7750 Lakeville Hwy and concurrent lease back of 13.6 acres more or less, delegate signing authority to the Assistant City Manager over the Operations Portfolio and adopt a Mitigation Monitoring Program. Attachments: Staff Report BPU Resolution 1254 Exhibit A_Mitigated Negative Declaration Exhibit B_Mitigation Monitoring Program Exhibit C_Lease Agreement A motion was made by Board Member Wright, seconded by Board Member Walsh, to approve Item 6.2 - RESOLUTION NO. 1254 ENTITLED "RESOLUTION OF THE BOARD OF PUBLIC UTILITIES APPROVING THE ACQUISITION OF 7700-7750 LAKEVILLE HWY FOR BIOSOLID LAND APPLICATION AND LEASE BACK OF 13.6 ACRES TO SELLER, DELEGATING SIGNING AUTHORITY TO THE ASSISTANT CITY MANAGER OVER THE OPERATIONS PORTFOLIO AND ADOPTING A MITIGATION MONITORING PROGRAM." The motion carried by the following vote: Yes: 5 - Chair Galvin III, Board Member Badenfort, Board Member Grabill, Board Member Walsh and Board Member Wright Absent: 2 - Vice Chair Arnone Jr. and Board Member Watts 14. ANNOUNCEMENT OF CLOSED SESSION ITEM(S) AND ADJOURNMENT TO CLOSED SESSION At 2:01 p.m., Assistant City Attorney Donovan announced the Closed Session item. 14.1 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Paragraph (1) of subdivision (d) of Government Code Section 54956.9) Name of Cases: In the Matter of the City of Santa Rosa’s Petition for Review of Action and Failure to Act by the California Regional Water Quality Control Board, North Coast Region, in Adopting Order No. R1-2020-0012 California State Water Resources Control Board, Water Quality Petition A-XXXX (not yet assigned, filed Sept. 18, 2020); and In the Matter of the City of Santa Rosa’s Petition for Review of Action and Failure to Act by the California Regional Water Quality Control Board, North Coast Region, in Adopting Resolution No. R1-2018-0025 California State Water Resources Control Board Water Quality Petition No. A-2605. City of Santa Rosa Meeting Minutes Page 4 of 6 Board of Public Utilities Meeting Minutes - Final May 6, 2021 Meeting went into Recess Meeting Reconvened 15. ADJOURN TO OPEN SESSION AND ANNOUNCEMENT OF CLOSED SESSION ACTION, IF ANY At 2:23 p.m., Assistant City Attorney Donovan stated there were no reportable items from the Closed Session. 3. STUDY SESSION 3.1 2021 DEMAND FEE UPDATE - RECOMMENDATION TO CITY COUNCIL Water and wastewater demand fees, which are one-time fees charged for new development, are updated periodically to adjust the fees based on current water and wastewater system valuation and customer usage. The last update was in 2014. In 2020, Santa Rosa Water worked with The Reed Group, Inc. to update the Water and Wastewater Demand Fee Study and develop a new fee schedule. The study session will provide an overview of the 2021 Demand Fee update. Attachments: Attachment 1_Demand Fee Report Presentation Presenters: Kimberly Zunino, Deputy Director - Water Administration and Bob Reed, The Reed Group, Inc. 4. MINUTES APPROVAL 4.1 April 15, 2021 - Regular Meeting Minutes. Attachments: April 15, 2021 - Regular Meeting Minutes The minutes for April 15, 2021 were received and accepted as submitted. 5. STAFF BRIEFINGS 5.1 WATER ADMINISTRATION DIVISION OVERVIEW The Administration Division supports Santa Rosa Water’s financial stability goals as well as providing regulatory compliance monitoring and input. The division develops, tracks and maintains all budgets, revenues and expenditures for the entire department and provides regular updates to the Board of Public Utilities and other stakeholders. In addition, they monitor proposed and implemented legislation and regulations through actively participating in regional discussions and committees and state and national associations that develop consistent input to City of Santa Rosa Meeting Minutes Page 5 of 6 Board of Public Utilities Meeting Minutes - Final May 6, 2021 regulators and provide direction on compliance. The presentation will provide an overview of the work performed by this division. The Board may discuss this item and give direction to staff. Attachments: Presentation (added 5/5/21) Presenter: Kimberly Zunino, Deputy Director - Water Administration 5.2 RECYCLED WATER SUPPLY UPDATE Staff will update the Board on recycled water supply issues. The Board may discuss this item and give direction to staff. Attachments: Presentation (added 5/5/21) Presenter: Emma Walton, Deputy Director - Regional Water Reuse Operations (Board Member Walsh left the meeting at approximately 3:00 p.m.) 8. PUBLIC COMMENTS ON NON-AGENDA MATTERS NONE. 9. REFERRALS - NONE. 10. WRITTEN COMMUNICATION (AND POSSIBLE BOARD DISCUSSION) - NONE. 11. SUBCOMMITTEE REPORTS Board Member Grabill reported the Water Conservation Subcommittee met on May 4 and staff provided an overview of current drought and regional water supply conditions along with a proposed request for community-wide 20% voluntary water conservation. The subcommittee unanimously recommended the request to the Board. Board Member Wright reported the Budget Review Subcommittee met on April 19. Staff provided a review of the Water and Wastewater Demand Fee Study along with a request for a recommendation to the Board, which the subcommittee unanimously supported. 12. BOARD MEMBER REPORTS Board Member Grabill reported that Chair Galvin appointed him to City of Santa Rosa Meeting Minutes Page 6 of 6 Board of Public Utilities Meeting Minutes - Final May 6, 2021 the review panel for Kelly Farm Mitigation Bank proposals and a recommendation will be coming to the Board at a future meeting. 13. DIRECTORS REPORTS Jennifer Burke, Director, reported this is the first winter when biosolids have not been composted at the Regional facility. More than 10,000 wet tons were delivered to Lystek and, as part of the revenue cost-sharing agreement, the department received payment of $500.00. 16. ADJOURNMENT OF MEETING Chair Galvin adjourned the meeting at 3:15 p.m. The next regular meeting of the Board of Public Utilities is scheduled for May 20, 2021. Approved on: May 20, 2021 _________/S/_____________ Roberta Atha, Recording Secretary