Council Chamber

City of Santa Rosa

100 Santa Rosa Avenue

Board of Public Utilities

Regular Meeting Minutes - Final

Thursday, April 19, 2018

1:30 PM

1. CALL TO ORDER AND ROLL CALL

Chair Galvin called the meeting of the Board of Public Utilities to

order at approximately 1:30 p.m.

5 -

Present

Chair Daniel Galvin III, Board Member Richard Dowd, Board Member

Mary Watts, Board Member Christopher Grabill, and Board Member

Lisa Badenfort

1 - Vice Chair William Arnone Jr.

Absent

2. STATEMENTS OF ABSENTION BY BOARD MEMBERS

No statements of abstention were made.

3. STUDY SESSION - NONE.

4. MINUTES APPROVAL

4.1

March 15, 2018 - Regular Meeting Minutes.

Approved as submitted.

5. STAFF BRIEFINGS

Presenter(s): Rhianna Frank, Research and Program Coordinator

5.1

EARTH DAY ONSTAGE AT COURTHOUSE SQUARE

Water Department staff will provide information on Santa Rosa’s annual

Earth Day OnStage event, which will take place Saturday, April 21, from

12-4pm, at Courthouse Square. Staff will provide an overview of the

event and information on the activities that will take place.

Presentation

Attachments:

6. CONSENT ITEMS - NONE.

7. REPORT ITEMS

7.1

REPORT - ADOPTION OF MITIGATED NEGATIVE DECLARATION,

MITIGATION AND MONITORING PROGRAM AND APPROVAL OF

THE R7 ROAD ACCESS STABILIZATION REPAIRS PROJECT

BACKGROUND: Pursuant to the requirements of the California

Environmental Quality Act, a Mitigated Negative Declaration (MND) and

Mitigation and Monitoring Program (MMP), were prepared for the R7

Road Access Stabilization Repairs Project (Project). An approval will

direct City staff to proceed with the next steps in implementing and

completing the mitigation required as part of the Project.

RECOMMENDATION: It is recommended by the Departments of Water

and Transportation and Public Works that the Board of Public Utilities,

by resolution, 1) adopt the Mitigated Negative Declaration for R7 Road

Access Stabilization Repairs Project; 2) adopt a Mitigation Monitoring

Program for the Project; and 3) approve the Project.

Attachments:

Presenter(s): Tetyana Mokvyts, Associate Civil Engineer

A motion was made by Board Member Dowd, seconded by Board Member

Watts, to approve Item 7.1 - RESOLUTION NO. 1157 ENTITLED

"RESOLUTION OF THE BOARD OF PUBLIC UTILITIES OF THE CITY OF

SANTA ROSA ADOPTING THE MITIGATED NEGATIVE DECLARATION,

MITIGATION AND MONITORING PROGRAM AND APPROVING THE R7

ROAD ACCESS STABILIZATION REPAIRS PROJECT". The motion carried

by the following vote:

5 -

Yes:

Chair Galvin III, Board Member Dowd, Board Member Watts, Board

Member Grabill and Board Member Badenfort

1 - Vice Chair Arnone Jr.

Absent:

7.2

REPORT - RECOMMENDATION FOR CITY COUNCIL APPROVAL OF

THE PRELIMINARY 2018/19 SUBREGIONAL SYSTEM OPERATING

AND MAINTENANCE, CAPITAL IMPROVEMENT, AND DEBT

SERVICE BUDGET AND ALLOCATION OF COSTS

BACKGROUND: The Subregional System, managed by the City of

Santa Rosa per the Agreement, is a state-of-the-art wastewater

treatment facility serving five-member agencies (Santa Rosa, Rohnert

Park, Sebastopol, Cotati, and the Sonoma County South Park

Sanitation District, each hereinafter referred to as “User Agency” or

collectively as “User Agencies”). The Laguna Treatment Plant is a

tertiary-level treatment facility permitted for 21.34 million gallons per day

(MGD) average dry weather flow.

The Subregional Operations and Maintenance (O&M) Fund budget

request is $35,161,214, the Subregional cash-funded Capital

Improvement Program (CIP) is $11,739,000 and the Subregional debt

service due is $22,319,235.

The operating Agreement requires that the City annually prepare a

Preliminary Budget and Allocation of Costs for the Subregional System

and notify the User Agencies of these costs by May 1st of each year.

The Agreement further requires that the proposed budget and allocation

of costs be reviewed by the Subregional Technical Advisory Committee

(TAC), the Board of Public Utilities (BPU) and the Council of the City of

Santa Rosa prior to noticing the partners of operating and debt service

costs due. The Council will be asked to approve the preliminary budget

for the purpose of notifying the User Agencies on May 2, 2018, and will

review the proposed budget with the city-wide budget study session on

May 16, 2018.

RECOMMENDATION: It is recommended by Santa Rosa Water Staff

and the Technical Advisory Committee (TAC) that the Board of Public

Utilities, by resolution, recommend that the City Council approve the

Preliminary 2018/19 Subregional System Operating and Maintenance,

Capital Improvement, and Debt Service Budget and Allocation of Costs

for the purpose of notifying the participating Subregional User Agencies

of their allocation of such costs.

Staff Report

Attachments:

Resolution

Presentation (added 4/18/18)

Presenter(s): Kimberly Zunino, Deputy Director Administration

A motion was made by Board Member Dowd, seconded by Board Member

Badenfort, to approve Item 7.2 as amended - RESOLUTION NO. 1158

ENTITLED "RESOLUTION OF THE BOARD OF PUBLIC UTILITIES

RECOMMENDING THAT THE SANTA ROSA CITY COUNCIL APPROVE THE

PRELIMINARY FISCAL YEAR 2018/19 SUBREGIONAL SYSTEM

OPERATING, CAPITAL AND DEBT SERVICE BUDGET AND THE

PROPOSED OPERATIONS AND DEBT SERVICE ALLOCATION OF COSTS".

The motion carried by the following vote:

5 -

Yes:

Chair Galvin III, Board Member Dowd, Board Member Watts, Board

Member Grabill and Board Member Badenfort

1 - Vice Chair Arnone Jr.

Absent:

7.3

REPORT - RECOMMENDATION FOR CITY COUNCIL APPROVAL OF

THE FY 2018/19 WATER AND LOCAL WASTEWATER FUNDS

OPERATIONS, MAINTENANCE AND CAPITAL EXPENDITURES

REQUESTS

BACKGROUND: Santa Rosa Water manages the City of Santa Rosa’s

water and wastewater enterprise funds under the general policy

authority and direction of the Board of Public Utilities (BPU) pursuant to

the City Charter. The BPU annually recommends a proposed fiscal

year water and wastewater budget to the City Council to be included in

the annual City budget adoption.

The water and wastewater funds are primarily financed by Santa Rosa

ratepayer user fees and charges. Water rates approved by the Santa

Rosa City Council include a fixed charge increase of 5% and a

wholesale water rate pass-through increase of approximately 1.6% (for

a combined water rate increase of approximately 2.3% for most

customers). This increase, combined with the use of current fund

balances, is considered sufficient to fund the prudent operation of the

water system in 2018/19, with the exception of the water quality issue

resulting from the October fires. Additional funds will be made available

for the final water quality repair project from fund balance,

re-appropriation of existing CIP funding and reserves. The authorized

3% wastewater rate increase combined with the use of current fund

balances is considered sufficient to fund the prudent operation of the

wastewater system and Santa Rosa’s share of the Subregional system

and maintain appropriate debt service ratios through 2018/19.

RECOMMENDATION: It is recommended by Santa Rosa Water staff

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

Council approve the Fiscal Year 2018/19 Water Fund and Local

Wastewater Fund operation, maintenance and capital expenditure

appropriation requests.

Staff Report

Attachments:

Resolution - all members

Resolution - abstention

A motion was made by Board Member Dowd, seconded by Board Member

Badenfort, to approve Item 7.3 as amended - RESOLUTION NO. 1159

ENTITLED "RESOLUTION OF THE BOARD OF PUBLIC UTILITIES

RECOMMENDING THAT THE SANTA ROSA CITY COUNCIL APPROVE THE

PROPOSED FISCAL YEAR 2018/19 SANTA ROSA WATER OPERATING,

MAINTENANCE AND CAPITAL IMPROVEMENT BUDGETS FOR THE

WATER FUND AND THE LOCAL WASTEWATER FUND, AND

RESOLUTION NO. 1160 ENTITLED "RESOLUTION OF THE BOARD OF

PUBLIC UTILITIES RECOMMENDING THAT THE SANTA ROSA CITY

COUNCIL APPROVE THE PROPOSED FISCAL YEAR 2018/19 SANTA ROSA

WATER OPERATING, MAINTENANCE AND CAPITAL IMPROVEMENT

BUDGETS FOR THE WATER FUND AND THE LOCAL WASTEWATER

FUND". The motion carried by the following vote:

5 -

Yes:

Chair Galvin III, Board Member Dowd, Board Member Watts, Board

Member Grabill and Board Member Badenfort

1 - Vice Chair Arnone Jr.

Absent:

8. PUBLIC COMMENTS ON NON-AGENDA MATTERS

NONE.

9. REFERRALS

NONE.

10. WRITTEN COMMUNICATION (AND POSSIBLE BOARD DISCUSSION) - NONE.

11. SUBCOMMITTEE REPORTS

Board Member Watts reported that the Water Conservation

Subcommittee would be meeting today.

12. BOARD MEMBER REPORTS

NONE.

13. DIRECTORS REPORTS

Ben Horenstein, Director reported on various department activities.

14. ANNOUNCEMENT OF CLOSED SESSION ITEM(S) AND ADJOURNMENT TO

CLOSED SESSION IN THE MAYOR'S CONFERENCE ROOM

At 2:20 p.m., Molly Maclean, Assistant City Attorney announced the

closed session item and the Board adjourned to closed session.

14.1

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION

Significant exposure to litigation pursuant to paragraph (2) of

subdivision (d) of Government Code Section 54956.9: potential number

of cases unknown.

15. ADJOURNMENT TO OPEN SESSION IN THE MAYOR'S CONFERENCE ROOM

AND ANNOUNCEMENT OF CLOSED SESSION ACTION, IF ANY.

The Board adjourned to open session at 3:56 p.m. Assistant City

Attorney Maclean reported that the Board gave direction to staff.

16. ADJOURNMENT OF MEETING

The meeting was adjourned at 3:57 p.m. The next regularly

scheduled meeting of the Board of Public Utilities will be held on