Village Council Workshop

Village of Wellington 12300 Forest Hill Blvd Wellington, FL 33414 Action Summary - Final Monday, July 10, 2023 3:00 PM UTILITIES WORKSHOP Village Hall - Conference Rooms 1E & 1F Village Council Workshop Anne Gerwig, Mayor Michael Napoleone, Vice Mayor John T. McGovern, Councilman Michael Drahos, Councilman Tanya Siskind, Councilwoman While this is a public meeting, there will be no opportunity for public comment at this workshop. This workshop will be Iive streamed, recorded and posted to the Village website for viewing. Village Council Workshop Action Summary - Final July 10, 2023 1. CALL TO ORDER Mayor Gerwig called the meeting to order at 3:06 p.m. Council Members in Attendance: Anne Gerwig, Mayor; Michael Napoleone, Vice Mayor; John McGovern, Councilman; Michael Drahos, Councilman; and Tanya Siskind, Councilwoman. 2. PLEDGE OF ALLEGIANCE Mayor Gerwig led the Pledge of Allegiance. 3. UTILITIES WORKSHOP AND DISCUSSION Mr. Barnes stated this is a Utilities Workshop. Ms. Quickel introduced the item. She stated that Joe Williams and Michael Noga from Raftelis were present. She stated 2017 was the last time new rates were adopted for the utility due to the rate study. There have been a number of unprecedented changes in the last few years. Staff wanted to have a special review of the challenges the Village is facing regarding the utility going forward. Mr. Williams, Senior Manager/Raftelis, conducted a presentation addressing Key Forecast Assumptions, Historical Operations, CIP Funding Plan and the Revenue Sufficiency Forecast. Mayor Gerwig inquired about rate increases and employee costs. Councilman Drahos inquired about the numbers in the 5-Year CIP. He asked about the upgrade and replacement costs for the Water Reclamation Facility. He asked what is aspirational on the list. Mr. Barnes stated these are not aspirational but these upgrades and replacements must be done in order to stay in compliance with regulations or code. Ms. Quickel stated this will be an ongoing capital program that is significant. Councilman Drahos inquired about the rate study. Ms. Cohen spoke regarding the warranty for the meters. She stated staff made a claim regarding the end points pursuant to the warranty. Councilman McGovern asked if the Village will keep the badger meters. Village of Wellington Page 1 Village Council Workshop Action Summary - Final July 10, 2023 Ms. Anjuli Panse spoke regarding the study and stated all parties were involved in making the best decisions. Ms. Panse stated $20 million is already funded and $58 million is new funding. Mr. Barnes discussed the consultants that were brought in regarding the study. Mayor Gerwig inquired about applying for grants. Ms. Quickel referenced the grants that the Village has applied for regarding the upgrades, etc. Mr. Williams reviewed funding sources for the proposed amount (Cash/Reserves, Capacity Charges, New Debt) for the 5-Year CIP. The Village Council, Ms. Panse, and Mr. Williams discussed new debt, State Revolving Fund (SRF) Loans, assets, reserve ranges for renewal and replacement (R&R) upgrades. Councilman Drahos asked about forecasting the rate adjustments. Mr. Williams reviewed the change in financial profile and referenced the Capital Improvement Program Funding by Year, Revenue Sufficiency at Indexed Rates, and Rate Adjustments. Vice Mayor Napoleone inquired about how the Village compares to neighboring cities regarding the rates. Mr. Williams reviewed the local comparison at 5,000 gallons consumption. Ms. Quickel stated other municipalities are facing the same issues with their utilities. This is not specific to Wellington. Councilman Drahos stated he would like to be able to justify that each one of the costs are necessary and not aspirational. Ms. Panse reiterated that other utilities across the board are facing the same type of issue in terms of costs. Ms. Quickel stated staff will be able to update the chart in a few weeks. Mr. Williams referenced the revenue sufficiency at the proposed rates. Village of Wellington Page 2 Village Council Workshop Action Summary - Final July 10, 2023 Mayor Gerwig asked that staff inform Council of what the Village has to do regarding the list. Ms. Cohen spoke regarding litigation about PFAS chemicals. She stated Laura Donaldson, Shareholder with Manson Bolves Donaldson Tanner Law Firm, was present by phone to speak with Council about the specifics of the PFAS contamination case. Councilman Drahos asked why had Wellington been approached. Councilman McGovern asked in what other matters does Ms. Donaldson represent the Village. Mr. Barnes stated she worked with the Village on the impaired water issue. Ms. Donaldson referenced the Chemours, DuPont and Corteva settlement. Mayor Gerwig inquired about the Village’s cost. There was discussion between Ms. Cohen and Council regarding a list of defendants. Ms. Cohen stated staff would provide a list of possible defendants and stated the contingency regarding the lawsuit is 40%. She stated she will be looking for direction from Council tomorrow night. 4. CLOSING COMMENTS None. 5. ADJOURN There being no further business to discuss with Council, the meeting adjourned at 4:15 p.m. Village of Wellington Page 3