Council Chamber

City of Santa Rosa

100 Santa Rosa Avenue

Board of Public Utilities

Regular Meeting Minutes - Draft

Thursday, December 19, 2024

1:30 PM

1. CALL TO ORDER AND ROLL CALL

5 -

Present

Chair Daniel Galvin III, Vice Chair William Arnone Jr., Board Member

Robin Bartholow, Board Member Duane De Witt, and Board Member

Glen Wright

1 - Board Member Lisa Badenfort

Absent

2 REMOTE PARTICIPATION UNDER AB 2449 (IF NEEDED)

None.

3. STATEMENTS OF ABSTENTION BY BOARD MEMBERS

None.

4. STUDY SESSION

None.

5. PRESENTATION

5.1

PRESENTATION - SONOMA WATER - WATER TRANSMISSION

SYSTEM CAPITAL PROJECTS UPDATE

Kent Gylfe, Director of Engineering - Sonoma Water, presented and

answered Board Member questions.

6. MINUTES APPROVAL

6.1

December 5, 2024 - Regular Meeting Minutes - Draft

The December 5, 2024 were approved as submitted.

7. STAFF BRIEFINGS

None.

8. CONSENT ITEMS

8.1

MOTION - APPROVAL OF WAIVER OF BID AND ISSUANCE OF ONE

YEAR BLANKET PURCHASE ORDER TO CUMMINS, INC. FOR

PURCHASE OF MISCELLANEOUS PARTS AND TECHNICAL

SERVICES

RECOMMENDATION: It is recommended by Santa Rosa Water and the

Finance Department that the Board of Public Utilities, by motion,

approve a waiver of bid and issuance of a one-year Blanket Purchase

Order (BPO) to Cummins, Inc., of Irvine, California, for the purchase of

miscellaneous parts and technical services for the Combined Heat and

Power (CHP) engines at the Laguna Treatment Plant (LTP) for a total

amount not to exceed $300,000.

A motion was made by Vice Chair Arnone, Jr., seconded by Board Member

Bartholow, to approve Consent Item 8.1.

The motion carried by the following vote:

5 -

Yes:

Chair Galvin III, Vice Chair Arnone Jr., Board Member Bartholow,

Board Member De Witt and Board Member Wright

1 - Board Member Badenfort

Absent:

9. REPORT ITEMS

9.1

REPORT - REJECT ALL BIDS - WATER PUMP STATION 9

ELECTRICAL UPGRADES, CONTRACT NO. C02438

BACKGROUND: Contract No. C02438, Water Pump Station 9 Electrical

Upgrades (Project) will replace aging equipment that is nearing the end

of its usability as well as incorporate new equipment to increase the

safety and reliability of the facility, with the installation of a portable

generator and main power PG&E disconnect.

On October 15, 2024, a total of one (1) bid was received in the amount

of $2,903,800.06, which is 77.97% over the Engineer’s Estimate. Staff

recommends rejecting all bids and proposes to implement design

changes to the Project, that do not significantly impact the Project

objectives, and a re-solicit the Project in early 2025.

RECOMMENDATION: It is recommended by Santa Rosa Water and the

Transportation and Public Works Department that the Board of Public

Utilities, by motion, reject all bids received for Contract No. C02438,

Water Pump Station 9 Electrical Upgrades.

Richela Maeda, Associate Civil Engineer, presented and answered

Board Member questions.

A motion was made by Board Member Wright, seconded by Vice Chair

Arnone, Jr., to approve to reject all bids received for Contract No. C02438,

Water Pump Station 9 Electrical Upgrades.

The motion carried by the following vote:

5 -

Yes:

Chair Galvin III, Vice Chair Arnone Jr., Board Member Bartholow,

Board Member De Witt and Board Member Wright

1 - Board Member Badenfort

Absent:

9.2

REPORT - ORDINANCE AMENDING SECTIONS OF SANTA ROSA

CITY CODE TITLE 15 - SEWERS, 2025, TO MAINTAIN COMPLIANCE

WITH EPA INDUSTRIAL PRETREATMENT PROGRAM REGULATION

REVISIONS

BACKGROUND: This ordinance consists of proposed sewer code edits

that derive from the California State Water Resources Control Board

(SWRCB) Pretreatment Compliance Audit findings from the August 5,

2022 audit of the City's Industrial pretreatment program.

RECOMMENDATION: It is recommended by Santa Rosa Water that the

Board of Public Utilities, by resolution, recommend that the City Council

adopt an Ordinance amending sections of Santa Rosa City Code Title -

15 Sewers: 15-04.030 Definitions(16); 15-08.490 Periodic Compliance

Reports; and 15-08.620 Recordkeeping.

Martin St. George, Environmental Compliance Supervisor,

presented.

A motion was made by Vice Chair Arnone, Jr., seconded by Board Member

Bartholow, to waive reading of the text and adopt:

RESOLUTION NO. 1333 ENTITLED: RESOLUTION OF THE BOARD OF

PUBLIC UTILITIES RECOMMENDING THAT THE SANTA ROSA CITY

COUNCIL ADOPT AN ORDINANCE AMENDING SECTIONS OF SANTA

ROSA CITY CODE TITLE 15 SEWERS TO MAINTAIN COMPLIANCE WITH

EPA INDUSTRIAL PRETREATMENT PROGRAM REGULATION REVISIONS.

The motion carried by the following vote:

5 -

Yes:

Chair Galvin III, Vice Chair Arnone Jr., Board Member Bartholow,

Board Member De Witt and Board Member Wright

1 - Board Member Badenfort

Absent:

9.3

REPORT - 2024 WATER AND WASTEWATER COST OF SERVICE

STUDY AND PROPOSED FY25/26 THROUGH FY29/30 RATE

SCHEDULE

BACKGROUND: In 2023, Santa Rosa Water (SRW) hired Hildebrand

Consulting, LLC (HC), to develop a ten-year long-range financial plan,

followed by a thorough cost of service analysis and recommendation of

a new water and wastewater rate schedule. HC found SRW’s financial

health is such that at the end of the current rate schedule, set to

conclude on June 30, 2025, moderate annual water and wastewater

rate increases would be required. Proposed increases between 6-7%

each year for water fixed and usage charges and 5% each year for

wastewater fixed and usage charges are proposed to help ensure that

SRW continues to meet all service and financial obligations. In addition,

SRW is proposing the re-introduction of the wholesale pass-through

rate increase to water rates. This would ensure that the annual increase

for wholesale water rates through Sonoma Water would be passed

through to the usage portion of customer water bills, ensuring that SRW

is neither under nor over charging customers for the annual increase in

the cost of wholesale water. In terms of the billing impacts, in years

where Sonoma Water’s increase to the wholesale rate is larger than

SRW’s increase to the usage rate, the customer would see an impact

slightly larger than the rate proposal on the usage portion of their bills,

and in years where Sonoma Water’s increase to the wholesale rate is

smaller than SRW’s increase to the usage rate, the customer would see

an impact slightly lower than SRW’s increase to the usage rate.

RECOMMENDATION: It is recommended by the Board of Public

Utilities Budget Subcommittee and Santa Rosa Water that the Board of

Public Utilities, by resolution, recommend that, after compliance with

Proposition 218 and successful conclusion of a protest hearing, the City

Council 1.) Enact increased rates for water services and 2.) Enact

increased rates for wastewater services.

Nick Harvey, Deputy Director - Water Administration, Dan Hennessy,

Director - Transportation and Public Works, Dustin Cooper, Interim

Assistant City Attorney, and Mark Hildebrand, consultant with

Hildebrand Consulting, presented and answered Board Member

questions.

A motion was made by Vice Chair Arnone, Jr., seconded by Board Member

Wright, to waive reading of the text and adopt:

RESOLUTION NO. 1334 ENTITLED: RESOLUTION OF THE BOARD OF

PUBLIC UTILITIES RECOMMENDING THAT THE COUNCIL OF THE CITY OF

SANTA ROSA ENACT INCREASED CHARGES AND RATES FOR WATER

AND WASTEWATER SERVICES.

The motion carried by the following vote:

5 -

Yes:

Chair Galvin III, Vice Chair Arnone Jr., Board Member Bartholow,

Board Member De Witt and Board Member Wright

1 - Board Member Badenfort

Absent:

10. PUBLIC COMMENTS ON NON-AGENDA MATTERS

None.

11. REFERRALS

None.

12. WRITTEN COMMUNICATION (AND POSSIBLE BOARD DISCUSSION)

None.

13. SUBCOMMITTEE REPORTS

None.

14. BOARD MEMBER REPORTS

Board Member DeWitt asked when the next Water Conservation

Subcommittee will be held.

Director Burke answered that the next Water Conservation

Subcommittee meeting will be held once Council appointments

have been made and the Board is fully seated.

15. DIRECTORS REPORTS

Director Burke reported: Thanked the Board and the Budget

Subcommittee for their hard work on the rate setting.

During the last Recycled Water Update, there was a comment that

they may need to discharge. As of now, they are still closely

watching. As of early this week we were a little over 840 million

gallons of storage, which is very high for this time of year. With the

incoming storms, we are estimating that we will be close to a billion

gallons in storage. The operations teams and environmental staff at

the plant have been meeting, and are anticipating we will be

discharging in January. This is a routine part of what we do, but it is

very staff intensive. We are maximizing flows to the Geysers and

thanks to the Board support, we were able to set a contract with

Sonoma Water to purchase phosphorus credits, so we anticipate we

will be in good shape for when we do discharge.

Chris Kilgore, who has been with the City since 2006, is retiring. He

has exceptional work ethic and he has earned everyone's respect.

He has always put forth a can do attitude, he has been an excellent

coach and mentor, and can always be counted on. Always asked