Board of Public Utilities

Page 3046 ACTION MINUTES OF REGULAR MEETING BOARD OF PUBLIC UTILITIES COMMISSIONERS CITY OF TULARE May 4, 2017 A special budget workshop of the Board of Public Utilities Commissioners, City of Tulare, was held on Thursday, May 4, 2017, at 2:00 p.m., in the Tulare Public Library & Council Chambers. BOARD MEMBERS PRESENT: James Pennington, Howard Stroman, Gregory Blevins, Thomas Griesbach, Erica Cubas STAFF PRESENT: Joe Carlini, Trisha Whitfield, Nick Bartsch, Jan, Frank Rodriguez, Benjamin Siegel, Tim Doyle, Jason Bowling, Bobby Dykes, Janice Avila, Steve Bonville, Melissa Hermann, Roxanne Yoder 2:00 p.m. I. CALL TO ORDER BUDGET WORKSHOP: President Pennington called the budget workshop to order at 2:01 p.m. II. CITIZEN COMMENTS – Comments from the public are limited to items listed on the agenda (GC 54954.3a). Speakers will be allowed three minutes. Please begin your comments by stating and spelling your name and providing your city of residence. There were no citizen comments. III. BUDGET WORKSHOP: (a) Receive, discuss and direct staff regarding the proposed 2017/18 operating and position control budget and 2017/22 Capital Improvements Projects Budget and set the public hearing to adopt said budgets: • Budget Process • Structural Changes • Overview of Funds • Water Fund • Wastewater and Sewer Fund • Solid Waste Fund • Position Control Budget • Projects Budget Interim Public Works Director Jason Bowling presented an overview of the Enterprise Funds budgets. Human Resources Director Janice Avila presented the Position Control Budget proposed changes. Senior Project Manager Nick Bartsch provided an  Page 3047 update on the status of the proposed Projects Budget and solicited questions or comments from the Board. Following the presentation of the budget and discussion amongst staff and the Board, it was moved by Board Member Blevins, seconded by Board Member Griesbach, and unanimously carried 5 to 0 to set the public hearing to adopt the 2017/18 utility operating and position control budget and 2017-2022 Projects Budget for June 1, 2017. IV. ADJOURN BUDGET WORKSHOP: President Pennington adjourned the budget workshop at 2:52. A regular meeting of the Board of Public Utilities Commissioners, City of Tulare, was held on Thursday, May 4, 2017, at 3:00 p.m., in the Tulare Public Library & Council Chambers. BOARD MEMBERS PRESENT: James Pennington, Howard Stroman, Gregory Blevins, Thomas Griesbach, Erica Cubas STAFF PRESENT: Joe Carlini, Heather Phillips, Trisha Whitfield, Nick Bartsch, Steve Bonville, Benjamin Siegel, Josh Rogers, Tim Doyle, Jason Bowling, Jan Bowen, Melissa Hermann, Roxanne Yoder V. CALL TO ORDER REGULAR MEETING: President Pennington called the regular meeting to order at 3:05 p.m. VI. PLEDGE OF ALLEGIANCE: Board Member Blevins led the Pledge of Allegiance and an invocation was given by Vice President Stroman. VII. CITIZEN’S REQUEST OR COMMENTS: President Pennington advised that comments from the public are for items within the jurisdiction of the Board. Speakers will be allowed three minutes. There were no citizen comments presented. VIII. COMMUNICATIONS: There were no items for this section on the agenda. IX. ADJOURN TO CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION(S):  Page 3048 President Pennington adjourned to closed session at 3:15 p.m. and noted the item(s) for closed session. (a) 54956.9(e)(2) Conference with Legal Counsel – Anticipated Litigation (1) Facts and circumstances related to recent request(s) by Colony Energy relating to its lease of property adjacent to the City’s Waste Water Treatment Plant (APN 174-040-006-000) as well as any additional requests it may make in its appearance before the BPU; and Colony Energy's position/role with respect to an RFP regarding Utilization of Biomethane and/or providing low cost electricity dated March 26, 2015; and the PPA negotiations that followed, and any requests Colony Energy may make in its appearance before the BPU, relating thereto. X. RECONVENE CLOSED SESSION President Pennington reconvened from closed session at 3:58 p.m. XI. CLOSED SESSION REPORT (if any): President Pennington advised there were no reportable items. XII. CONSENT CALENDAR: It was moved by Board Member Griesbach, seconded by Board Member Cubas, and unanimously carried that the items on the Consent Calendar be approved as presented with the exception of item 3. (1) Approve minutes of April 20, 2017 regular/special meeting(s). (2) Receive, review and file the monthly investment report for March 2017. (3) Accept Public Works Project Dashboard for April 2017. Board Member Stroman pulled this item to inquire about the status of the bids on the splitter box project. Operations Manager Josh Rogers responded thereto. Following discussion, it was moved by Vice President Stroman, seconded by Board Member Cubas, and unanimously carried 5 to 0 to accept the item as presented. XIII. GENERAL BUSINESS: Comments related to General Business Items are limited to three minutes per speaker for a maximum of 30 minutes per item unless otherwise extended by the Board. (1) Consideration of a request for a second extension of 12 additional months for a total of 36 months of the Entitlement Period for a ground lease between Colony Energy Partners–Tulare, LLC and the City of Tulare entered into on May 11, 2015. President Pennington presented this item.  Page 3049 Board Member Blevins noted there is an error on the transmittal in regard to the loss of lease revenue amount, stating the correct amount would be $53,004, not $53,400. Kent Hawkins of Colony Energy Partners, LLC addressed the Board expressing a desire to extend the “Entitlement Period” of the lease at the reduced rate. Matt Schmidt of Colony Energy Partners, LLC provided additional information to address questions raised by the Board. Following a lengthy discussion, it was moved by Board Member Blevins to agree to a 30 day extension at the reduced rate, seconded by Vice President Stroman, and unanimously carried 5 to 0. It was recommended by the City Attorney, Heather Phillips, to bring forward issues regarding this matter to Closed Session at a future meeting. President Pennington directed staff to place this topic on the next BPU agenda for Closed Session and General Business. Board Member Blevins requested to receive documentation regarding the City and Colony Energy history. (2) Discussion regarding the adoption of Resolution 17-02 fixing the time for holding the regular meetings of the Board of Public Utilities and rescinding all resolutions or parts of resolutions in conflict therewith. President Pennington opened up the item for discussion amongst the members of the Board. Following discussion, it was moved by Vice President Stroman to change the meeting time for the BPU to 7:00 p.m., seconded by Board Member Blevins, and unanimously carried 5 to 0 to adopt Resolution 17-02 as requested. (3) Appoint one representative and one alternate to the Kaweah River Basin Integrated Regional Water Management Group Governing Board and Stake Holder Advisory Group. Management Analyst Ben Siegel provided a report for the Board’s review and consideration. Following discussion, it was the consensus of the Board to move this item to the next regular meeting of the BPU. (4) Authorize the City Manager or designee to sign a contract with Cannon of Bakersfield, CA in the amount of $120,079 for preliminary and final design, bidding and construction support services for the construction of a well at Cartmill and Mooney Blvd. subject only to minor conforming or clarifying changes acceptable to the City Attorney; approve the attached project sheet; and authorize the City Manager or designee to approve contract change orders in the amount not to exceed 10% ($12,007.90) of the contract amount. Project Manager Trisha Whitfield provided a report for the Board’s review and consideration. Following discussion, it was moved by President Pennington, seconded by Board Members Blevins, and unanimously carried 5 to 0 to accept the item as presented. (5) Award a contract for drilling and development of a well at 1258 N. J Street to Arthur & Orum Well Drilling, Inc. of Fresno, CA in the amount of $288,310.00, and authorize the City Manager to approve contract change  Page 3050 orders in an amount not to exceed 10% ($28,831.00) of the contract award amount. Project Manager Trisha Whitfield provided a report for the Board’s review and consideration. Following discussion, it was moved by Vice President Stroman, seconded by Board Member Cubas, and unanimously carried 5 to 0 to accept the item as presented. (6) Approve scope changes to project WT0020 Well Rehabilitation Projects; award and authorize the City Manager to execute an amendment to the contract for the Well #44 Improvement project to Valley Pump & Dairy Systems of Tulare, California in the amount of $51,683.00; and authorize the City Manager, or designee, to approve contract change orders in amounts up to 10% ($5,168.30) of the contract award. Project Manager Trisha Whitfield provided a report for the Board’s review and consideration. Following discussion, it was moved by Vice President Stroman, seconded by Board Member Cubas, and unanimously carried 5 to 0 to accept the item as presented. XIV. ITEMS OF BOARD INTERESTS: (may include City Council and Planning Commission updates) – GC 54954.2(3) Items of Board interest were discussed among the Board and staff. XV. ADJOURN REGULAR MEETING: President Pennington adjourned the regular meeting at 5:08 p.m. __________________________________ President of the Board of Public Utilities Commissioners of the City of Tulare ATTEST: __________________________ Secretary of the Board of Public Utilities Commissioners