Board of Public Utilities

Hybrid - See Agenda for City of Santa Rosa Participation Information City Council Chamber 100 Santa Rosa Avenue Board of Public Utilities Meeting Minutes - Final Thursday, November 4, 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 Mary Watts, and Board Member Glen Wright Absent 2 - Vice Chair William Arnone Jr., and Board Member Mark Walsh Chair Galvin announced that agenda items 7.1 and 7.2 were being pulled from the agenda and will be moved to the November 18, 2021 agenda. 2. STATEMENTS OF ABSTENTION BY BOARD MEMBERS There were no Statements of Abstention from Board Members. 3. STUDY SESSION - NONE. 4. MINUTES APPROVAL 4.1 October 21, 2021 - Regular Meeting Minutes. Attachments: October 21, 2021 - Regular Meeting Minutes The minutes for October 21, 2021 were received and accepted as submitted. 5. STAFF BRIEFINGS 5.1 WATER SUPPLY UPDATE Staff will update the Board on water supply issues. The Board may discuss this item and give direction to staff. Attachments: Presentation (added 11/2/21) Presenter: Claire Nordlie, Sustainability Coordinator 6. CONSENT ITEMS 6.1 RESOLUTION - SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH TIV, FOR CREATIVE SERVICES, TO INCREASE City of Santa Rosa Meeting Minutes Page 2 of 6 Board of Public Utilities Meeting Minutes - Final November 4, 2021 COMPENSATION BY $100,000 RECOMMENDATION: It is recommended by the Water Department that the Board of Public Utilities, by resolution, approve a second amendment to Professional Services Agreement F001931 with TIV to provide creative services for $100,000, with a total not to exceed amount of $199,000. Attachments: Staff Report Attachment 1_Second Amendment to PSA F001931 BPU Resolution No. 1275 A motion was made by Board Member Wright, seconded by Board Member Watts, to approve Item 6.1 - RESOLUTION NO. 1275 ENTITLED "RESOLUTION OF THE BOARD OF PUBLIC UTILITIES AUTHORIZING APPROVAL OF THE SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT F001931 TO INCREASE COMPENSATION BY $100,000 FOR CREATIVE SERVICES WITH TIV." The motion carried by the following vote: Yes: 5 - Chair Galvin III, Board Member Badenfort, Board Member Grabill, Board Member Watts and Board Member Wright Absent: 2 - Vice Chair Arnone Jr. and Board Member Walsh 7. REPORT ITEMS 7.1 REPORT - AMENDED 2020 WATER SHORTAGE CONTINGENCY PLAN BACKGROUND: In conformance with the Urban Water Management Planning Act (Act), the City of Santa Rosa prepared its 2020 Urban Water Management Plan (UWMP) and its 2020 Water Shortage Contingency Plan (Shortage Plan). Both documents were adopted by City Council on June 8, 2021 and submitted to the State Department of Water Resources on June 30, 2021. State law allows each water supplier to amend its Shortage Plan independent of the UWMP. The City wishes to amend the 2020 Shortage Plan to revise the Excess Use Penalty structure that applies in severe stages of shortage and change the water demand offset requirements that apply to new construction when water is being allocated for existing customers. The Board will be considering a recommendation to Council to adopt the Amended 2020 Water Shortage Contingency Plan. RECOMMENDATION: It is recommended by Santa Rosa Water that the Board of Public Utilities, by resolution, recommend that the City Council adopt the Amended 2020 Water Shortage Contingency Plan and introduce an ordinance approving revisions to the Excess Use Penalty structure set forth in Section 14-04.015 of the City Code. City of Santa Rosa Meeting Minutes Page 3 of 6 Board of Public Utilities Meeting Minutes - Final November 4, 2021 Attachments: Staff Report Attachment 1_Amended 2020 WSCP (redline) Attachment 2_Draft Ordinance Attachment 3_Draft Ordinance (redline) Resolution Presentation (added 11/2/21) (continued to November 18, 2021 Board meeting) 7.2 REPORT - WATER DEMAND OFFSET POLICY, FEE STUDY, AND FEES BACKGROUND: The City of Santa Rosa is required by California State Law to prepare an Urban Water Management Plan (UWMP) and Water Shortage Contingency Plan (Shortage Plan) every five years to assess the adequacy and reliability of water supplies for current and future needs as well as plan for and detail how the City will respond to various levels of water supply shortage. Staff will present the Water Demand Offset (WDO) Policy, 2021 WDO Fee Study, and WDO Fees which have been developed to implement the City’s Shortage Plan requirement that new construction must offset water demand during water shortage emergencies that require very restrictive water allocations (water rationing) by the City’s existing customers. RECOMMENDATION: It is recommended by Santa Rosa Water that the Board of Public Utilities, by resolution, recommend that the City Council adopt the Water Demand Offset (WDO) Policy, the 2021 WDO Fee Study, and the WDO Fees and authorize the WDO Fees to be adjusted on an annual basis to account for inflation at the beginning of the calendar year (January 1) starting in 2023, using the Engineering News Record’s 20-Cities CCI (20-cities CCI). Attachments: Staff Report Attachment 1_WDO Policy Attachment 2_2021 WDO Fee Study Resolution Exhibit A_2021 WDO Fee Study Presentation (added 11/2/21) (continued to November 18, 2021 Board meeting) 7.3 REPORT - RECOMMENDATION TO CITY COUNCIL TO MODIFY CITY CODE TITLE 14 (POTABLE WATER AND RECYCLED WATER), BY MODIFYING SUBSECTION (B) AND DELETING SUBSECTION (G) OF SECTION 14-04.010 (DEFINITIONS) AND MODIFYING SECTION 14-04.140 (BILLS GENERALLY) BACKGROUND: With the implementation of Advanced Metering Infrastructure (AMI), Water Billing is able to create more consistent billing periods for water and sewer customers. Billing periods are currently between 28 to 35 days. In order to modify the meter read schedules to transition from billing periods of 28 to 35 days to billing periods of 28 to 32 days, some customers will require a 13th bill in 2021. City of Santa Rosa Meeting Minutes Page 4 of 6 Board of Public Utilities Meeting Minutes - Final November 4, 2021 City Code Section 14-04.140 currently states that the City shall render bills 12 times per calendar year and the City Code sections must be modified to accomplish the modification to the City billing. Affected customers will still have a full billing period of no less than 28 days, but they will receive a bill in the last week of 2021 creating 13 bills for the calendar year. RECOMMENDATION: It is recommended by the Finance Department and Santa Rosa Water that the Board of Public Utilities, by resolution, recommend that the City Council introduce an ordinance modifying Title 14 (Potable and Recycled Water) of the City Code to modify the definition of “Billing Period” in Section 14-04.010(B), delete the definition of “Monthly” in Section 14-04.010(G) and modify Section 14-04.140 to delete the wording “12 times per year” and replace it with a requirement that the City render bills “monthly”. Attachments: Staff Report BPU Resolution No. 1274 Presentation (added 11/2/21) Presenter: Alan Alton, Acting Chief Financial Officer A motion was made by Board Member Wright, seconded by Board Member Grabill, to approve Item 7.3 - RESOLUTION NO. 1274 ENTITLED "RESOLUTION OF THE BOARD OF PUBLIC UTILITIES RECOMMENDING THAT THE COUNCIL OF THE CITY OF SANTA ROSA INTRODUCE AN ORDINANCE AMENDING SECTIONS 14-04.010 AND 14-04.140 OF TITLE 14 OF THE SANTA ROSA CITY CODE TO MODIFY PROVISIONS RELATED TO MONTHLY WATER AND SEWER BILLS." The motion carried by the following vote: Yes: 5 - Chair Galvin III, Board Member Badenfort, Board Member Grabill, Board Member Watts and Board Member Wright Absent: 2 - Vice Chair Arnone Jr. and Board Member Walsh 8. PUBLIC COMMENTS ON NON-AGENDA MATTERS NONE. 9. REFERRALS - NONE. 10. WRITTEN COMMUNICATION (AND POSSIBLE BOARD DISCUSSION) - NONE. 11. SUBCOMMITTEE REPORTS Chair Galvin reported the Contract Review Subcommittee met on October 28, 2021. Three agreements were reviewed and unanimously recommended by the subcommittee. The first was a Second Amendment to a Professional Services Agreement with City of Santa Rosa Meeting Minutes Page 5 of 6 Board of Public Utilities Meeting Minutes - Final November 4, 2021 E&M Electric dba Wonderware for professional technology services for the Laguna Treatment Plant SCADA unit. The item will come before the Board at a future meeting. The second was a Second Amendment to a Professional Services Agreement with TIV, which was on today's Consent calendar, to increase compensation by $100,000 to support the City's ongoing outreach efforts, including the multi-media drought campaign. The third was a proposed Professional Services Agreement with Montrose Air Quality, LLC for air emission monitoring at the Laguna Treatment Plant. The subcommittee recommended approval with the caveat that staff provide additional information to the Board regarding proposed changes to the insurance requirements in the contract. This item is scheduled to come before the Board on November 18. 12. BOARD MEMBER REPORTS NONE. 13. DIRECTORS REPORTS Jennifer Burke, Director, shared that Local Operations responded to an early-morning report of a water main break at Highway 12 and Middle Rincon Road. Crews worked quickly to isolate the area of the water main and worked closely with Caltrans, the Police Department and Public Works crews to initiate a road closure that included both eastbound lanes and one westbound lane of Highway 12. Information was provided to the public via radio, television, social media and e-mail regarding the closures and detours. Local Operations crews made a repair by mid-morning, removing and replacing a 12-foot portion of the 10" cast iron water main, and five customers who were impacted were returned to service. Road repairs are scheduled to begin Friday evening. Production at the Farmers Lane wells was shut down on November 1. This will allow recharge of the aquifer over the winter months and an opportunity for Local Operations crews to perform annual maintenance on the wells and the water treatment plant. Production is planned to resume in mid to late Spring of 2022, though staff is coordinating with Sonoma Water regarding regional water supply and will start up the wells sooner, if needed. Both wells produced City of Santa Rosa Meeting Minutes Page 6 of 6 Board of Public Utilities Meeting Minutes - Final November 4, 2021 431 million gallons this season. Director Burke provided an update on customer arrearages which now total roughly $1.7 million. The State has provided an opportunity for water agencies to apply for a grant to obtain funding for these arrearages. Staff has identified approximately 830 customer accounts that will require manual review to identify arrearages that would qualify for reimbursement. The State grant currently applies only to the water portion of the bill and qualifying arrearages that occurred between March 20, 2020 and June 30, 2021. In response to questions from Board Member Grabill, Director Burke stated that staff is providing information on other assistance/funding opportunities to customers. The Water Department is not able to provide forgiveness on arrearages with ratepayer funds. The State funding will allow the department to relieve the customer debt that qualifies under the program. 14. ADJOURNMENT OF MEETING Chair Galvin adjourned the meeting at 2:19 p.m. The next regular meeting of the Board of Public Utilities is scheduled for November 18, 2021. Approved on: November 18, 2021 ________/S/______________ Roberta Atha, Recording Secretary