Board of Public Utilities

Council Chamber City of Santa Rosa 100 Santa Rosa Avenue Board of Public Utilities Regular Meeting Minutes - Final Thursday, March 16, 2023 1:30 PM 1. CALL TO ORDER AND ROLL CALL Vice Chair Arnone called the meeting to order at 1:32 p.m. Present 5 - Vice Chair William Arnone Jr., Board Member Lisa Badenfort, Board Member Robin Bartholow, Board Member Mary Watts, and Board Member Glen Wright Absent 2 - Chair Daniel Galvin III, and Board Member Mark Walsh 2. STATEMENTS OF ABSTENTION BY BOARD MEMBERS Board Member Bartholow recused herself from Item 5.2 due to her role with Sonoma County Farm Bureau. 3. STUDY SESSION None. 4. MINUTES APPROVAL 4.1 March 2, 2023 - Regular Meeting Minutes - DRAFT. Attachments: March 2, 2023 - Regular Meeting Minutes - DRAFT The March 2, 2023 minutes were approved as submitted. 5. STAFF BRIEFINGS 5.1 2022 WATER INFRASTRUCTURE REPORT CARD Staff will provide the results of the 2022 Water Infrastructure Report Card, a high-level condition assessment based on updated master plans of the water delivery system, wastewater collection system, and regional treatment and reuse system. The purpose of the report is to track trends, inform the public and decision makers about the current condition of these systems, and to identify recommendations for improving them over time. The methodology and scoring uses the American Society of Civil Engineers A-F school report card format. The Board may discuss this item and give direction to staff. City of Santa Rosa Regular Meeting Minutes Page 2 of 8 Board of Public Utilities Regular Meeting Minutes - Final March 16, 2023 Attachments: 2022 SR Water Infrastructure Report Card Final Presentation (Uploaded 3.15.2023) Lori Urbanek, Deputy Director - Engineering Resources, presented. 5.2 WATER AND RECYCLED WATER SUPPLY UPDATE Staff will update the Board on water and recycled water supply issues. The Board may discuss this item and give direction to staff. Attachments: Presentation (Uploaded 3.15.2023) Peter Martin, Deputy Director - Water Resources, presented and answered questions from the Board on the local water and recycled water supply. Board Member Bartholow left the Chamber at 1:59 p.m. Mike Prinz, Deputy Director - Regional Water Reuse Operations, presented and answered questions from the Board on the regional water and recycled water supply. Board Member Bartholow re-entered the Chamber at 2:17 p.m. 6. CONSENT ITEMS A motion was made by Board Member Wright, seconded by Board Member Badenfort, to approve Consent Items 6.1 through 6.3. The motion carried by the following vote: Yes: 5 - Vice Chair Arnone Jr., Board Member Badenfort, Board Member Bartholow, Board Member Watts and Board Member Wright Absent: 2 - Chair Galvin III and Board Member Walsh 6.1 MOTION - APPROVAL OF AMENDMENT TO BLANKET PURCHASE ORDER 161741 - ONE-YEAR EXTENSION AND INCREASE COMPENSATION, SNF POLYDYNE, INC. RECOMMENDATION: It is recommended by the Water and Finance Departments that the Board of Public Utilities, by motion, to approve a one-year extension, with a 6.1% increase to unit price, and increase City of Santa Rosa Regular Meeting Minutes Page 3 of 8 Board of Public Utilities Regular Meeting Minutes - Final March 16, 2023 compensation by $440,000.00 to Blanket Purchase Order 161741 for the supply and delivery of Clarifloc WE-1452 dewatering polymer for the Laguna Treatment Plant to SNF Polydyne, Inc., Riceboro, Georgia, in the total amount not to exceed $1,474,000.00. Attachments: Staff Report This Consent - Motion was approved. 6.2 MOTION - APPROVAL OF AMENDMENT TO BLANKET PURCHASE ORDER 163878 - ONE-YEAR EXTENSION AND INCREASE COMPENSATION, SNF POLYDYNE, INC. RECOMMENDATION: It is recommended by the Water and Finance Departments that the Board of Public Utilities, by motion, to approve a one-year extension, with an 8% increase to unit price and an increase in compensation by $45,000.00 to Blanket Purchase Order (BPO) 163878 for the supply and delivery of Flosperse SC 122 CM (Propylene) for the Laguna Treatment Plant to SNF Polydyne, Inc., Riceboro, Georgia, in the total amount not to exceed $120,000.00. Attachments: Staff Report This Consent - Motion was approved. 6.3 MOTION - APPROVAL OF AMENDMENT TO BLANKET PURCHASE ORDER 166906 - ADD FUNDS, ONE YEAR EXTENSION - FERRIC CHLORIDE DELIVERY RECOMMENDATION: It is recommended by the Water and Finance Departments that the Board, by motion, approve amendment of Blanket Purchase Order 166906 for ferric chloride delivery to add funds in the amount of $65,000, and extend for a one-year period with an increase in unit price and increase in compensation in the amount of $594,667.83 to Pencco, Inc., San Felipe, Texas for a not to exceed Blanket Purchase Order cumulative value of $759,667.83. Attachments: Staff Report Attachment 1 – Amended Compensation Schedule This Consent - Motion was approved. 7. REPORT ITEMS 7.1 REPORT - FUNDING AGREEMENT BETWEEN STATE OF City of Santa Rosa Regular Meeting Minutes Page 4 of 8 Board of Public Utilities Regular Meeting Minutes - Final March 16, 2023 CALIFORNIA DEPARTMENT OF WATER RESOURCES AND CITY OF SANTA ROSA FOR DIRECT INSTALL WATER USE EFFICIENCY PROJECT BACKGROUND: In September 2022, Governor Newsom signed Assembly Bill 179, which implements the State of California budget for the 2022-23 Fiscal Year. An appropriation of $1.5 million was included for Santa Rosa Water to launch a Direct Install Water Use Efficiency Program Project. The California Department of Water Resources (DWR) has the responsibility for the administration of the funding, including establishing the procedures for disbursement of funding. DWR requires that the City adopt a resolution authorizing an agent to sign the funding agreement and associated documents. The proposed project to be funded will consist of approximately 1,900 toilet packages being installed at residential, commercial, industrial, and institutional (CII) Santa Rosa Water customer locations. For residential locations, the toilet package will consist of up to two high efficiency toilets, and as needed, high efficiency showerheads, bathroom aerators, and kitchen aerators. For CII locations, the limit on the number of toilets installed is at the discretion of the Santa Rosa Water staff, to maximize the potential water savings. CII customers will also be issued free showerheads, bathroom aerators and kitchen aerators as needed. The fixtures and installation are provided at no cost to the customer. RECOMMENDATION: It is recommended by Santa Rosa Water staff that the Board of Public Utilities, by resolution, approve the Funding Agreement between the State of California Department of Water Resources and the City of Santa Rosa to implement the Direct Install Water Use Efficiency Project, and authorize the Director of Santa Rosa Water to execute the Funding Agreement and related documents. Attachments: Staff Report Attachment 1 – Funding Agreement between the State of California and City of Santa Rosa Resolution Presentation (Uploaded 3.15.2023) Claire Nordlie, Sustainability Coordinator, presented and answered questions from Board Members. City of Santa Rosa Regular Meeting Minutes Page 5 of 8 Board of Public Utilities Regular Meeting Minutes - Final March 16, 2023 A motion was made by Board Member Bartholow, seconded by Board Member Wright, to approve RESOLUTION NO. 1313 ENTITLED: RESOLUTION OF THE CITY OF SANTA ROSA BOARD OF PUBLIC UTILITIES AUTHORIZING SANTA ROSA WATER TO ENTER INTO A FUNDING AGREEMENT WITH THE STATE OF CALIFORNIA DEPARTMENT OF WATER RESOURCES TO IMPLEMENT A DIRECT INSTALL WATER USE EFFICIENCY PROGRAM; AND AUTHORIZING THE DIRECTOR OF SANTA ROSA WATER TO EXECUTE THE FUNDING AGREEMENT AND RELATED DOCUMENTS. The motion carried by the following vote: Yes: 5 - Vice Chair Arnone Jr., Board Member Badenfort, Board Member Bartholow, Board Member Watts and Board Member Wright Absent: 2 - Chair Galvin III and Board Member Walsh 7.2 REPORT - SONOMA COUNTY WATER AGENCY 2023/24 WATER TRANSMISSION BUDGET AND RATE INCREASE BACKGROUND: The City of Santa Rosa purchases approximately 95% of the water supplied to our customers from Sonoma Water, the region’s water wholesaler. Sonoma Water is proposing to raise the wholesale rate of water by 10.54% from $1,061.04 per acre-foot to $1172.89 per acre foot. There is a Water Advisory Committee (WAC) made up of elected officials of each of the eight prime contractors, including Santa Rosa, that purchase water from Sonoma Water. The WAC is an advisory committee to the Sonoma Water Board of Directors. The City’s WAC Representative is Mayor Natalie Rogers. On April 3, 2023, the WAC is scheduled to vote on whether or not to recommend approval of the Sonoma Water proposed 2023/24 budget and rate increase to the Sonoma Water Board of Directors. The Technical Advisory Committee (TAC) is made of technical staff of each of the eight prime contractors that purchase water from Sonoma Water. The TAC provides technical analysis and recommendations to the WAC. The TAC considered Sonoma Water’s proposed 2023/24 budget and rates on March 6, 2023 and voted in favor of recommending the proposed budget and rate increase with Santa Rosa’s TAC representative voting in opposition. City of Santa Rosa Regular Meeting Minutes Page 6 of 8 Board of Public Utilities Regular Meeting Minutes - Final March 16, 2023 RECOMMENDATION: It is recommended by the Water Department that the Board of Public Utilities consider Sonoma Water’s proposed 2023/24 Water Transmission Budget and rate increase and, by motion, make a recommendation to the City Council regarding Council’s direction to its Water Advisory Committee (WAC) representative for the April 3, 2023 WAC vote on the proposed 2023/24 Water Transmission Budget and rate increase. Attachments: Staff Report Attachment 1 – Sonoma Water Transmission FY 2023/24 Draft Budget and Rates Presentation (Uploaded 3.15.2023) A motion was made by Board Member Wright, seconded by Board Member Badenfort, recommending to the City Council that the City of Santa Rosa's WAC representative vote "No" on the Sonoma County Water Agency budget and rate increase. The motion carried by the following vote: Yes: 5 - Vice Chair Arnone Jr., Board Member Badenfort, Board Member Bartholow, Board Member Watts and Board Member Wright Absent: 2 - Chair Galvin III 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 Board Member Badenfort reported that the Contract Review Subcommittee met on March 13th to review one agreement, which was unanimously recommended by the subcommittee. The agreements was on today's Board agenda. The item was Funding Agreement between the City of Santa Rosa and the California Department of Water Resources for disbursing state budget earmarked funds to Santa Rosa Water for the purposes of implementing a water use efficiency direct install program. City of Santa Rosa Regular Meeting Minutes Page 7 of 8 Board of Public Utilities Regular Meeting Minutes - Final March 16, 2023 Board Member Watts reported that the Budget Review Subcommittee met for the second time on Monday, March 13th to review and consider the proposed FY2023/24 Water, Wastewater, Storm Water and Creeks, and Regional Operations and Maintenance, CIP and Debt Services budgets. The subcommittee reviewed and unanimously recommended approval of the Budgets to the Board. The budgets will come before the Board at a future meeting in April. 12. BOARD MEMBER REPORTS None. 13. DIRECTORS REPORTS Director Burke reported: local collection system experienced minimal impact due to recent storms; will be developing outreach plan to inform neighbors of impacts of unauthorized connections like sump pumps and down spouts, Santa Rosa Water Department's Local Operations took delivery of our first all-electric truck last week; Water staff will be taking the lead on a city-wide provide to develop an Electric Vehicle Fleet Master Plan in the coming months; request for proposal was sent out for a Strategic Asset Management Plan and selected GHD; the Strategic Asset Management Plan will be a roadmap for the effective management, maintenance, and improvement of the City's water, sewer, recycled water, and storm drain assets. Director Burke answered Board Member questions. 14. ADJOURNMENT OF MEETING Vice Arnone adjourned the meeting at 3:18 p.m. The next meeting of the Board of Public Utilities is scheduled for April 6, 2023. City of Santa Rosa Regular Meeting Minutes Page 8 of 8 Board of Public Utilities Regular Meeting Minutes - Final March 16, 2023 Approved on: April 6, 2023 ____/S/___________________ Michelle Montoya Recording Secretary