City Council Chamber

City of Santa Rosa

100 Santa Rosa Avenue

Board of Public Utilities

Meeting Minutes - Final

Thursday, October 15, 2020

1:30 PM

1. CALL TO ORDER AND ROLL CALL

Chairman Galvin called the meeting to order at approximately 1:30

p.m.

7 -

Present

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

Lisa Badenfort, Board Member Christopher Grabill, Board Member

Mary Watts, Board Member Glen Wright, and Board Member Matt

Mullan

2. STATEMENTS OF ABSTENTION BY BOARD MEMBERS

There were no Statements of Abstention from Board members.

3. STUDY SESSION - NONE

4. MINUTES APPROVAL

The minutes for September 17, 2020 and October 6, 2020 were

received and accepted as submitted.

September 17, 2020 - Regular Meeting Minutes

4.1

4.2

September 17, 2020 - Regular Meeting Minutes

Attachments:

October 6, 2020 - Special Meeting Minutes

Attachments:

5. STAFF BRIEFINGS

5.1

2020-2021 CAPITAL IMPROVEMENT CONSTRUCTION PROJECT UPDATE

Staff will present a brief update on completed water, wastewater and regional

construction projects in 2020, highlighting key projects in each sector. Staff will also

provide a preview of construction projects to be initiated in 2021. The Board may

discuss this item and give direction to staff.

Presentation

Attachments:

Presenters: Lori Urbanek, Deputy Director - Engineering Resources,

Mark Kasraie, TPW Supervising Engineer, Tracy Duenas, TPW

Supervising Engineer and Erich Rauber, TPW Supervising Engineer

6. CONSENT ITEMS

6.1

RESOLUTION - WAIVER OF COMPETITIVE PROCESS AND SOLE SOURCE

AWARD FOR ULTRAVIOLET DISINFECTION SYSTEM PARTS

RECOMMENDATION: It is recommended by the Water and Finance Departments

that the Board of Public Utilities, by resolution, authorize and award a sole source

Blanket Purchase Order (BPO) for ultraviolet disinfection system parts to D. C.

Frost Associates, Inc., Walnut Creek, California, in an amount not to exceed

$1,050,000.

Staff Report

Attachments:

Attachment 1_Parts Price Request

Resolution No. 1236

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

Wright, to approve Item 6.1 - RESOLUTION NO. 1236 ENTITLED

"RESOLUTION OF THE BOARD OF PUBLIC UTILITIES AUTHORIZING A

WAIVER OF COMPETITIVE PROCESS AND AWARD OF A SOLE SOURCE

BLANKET PURCHASE ORDER FOR ULTRAVIOLET DISINFECTION

SYSTEM PARTS TO DC FROST ASSOCIATES, INC., WALNUT CREEK,

CALIFORNIA." The motion carried by the following vote:

7 -

Yes:

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

Board Member Grabill, Board Member Watts, Board Member Wright

and Board Member Mullan

6.2

RESOLUTION - THIRD AMENDMENT - GENERAL SERVICES AGREEMENT

F001601 PONCIA FERTILIZER, INC.

RECOMMENDATION: It is recommended by the Water and Finance Departments

that the Board of Public Utilities, by resolution, approve the Third Amendment to

General Service Agreement F001601 in the amount of $1,225,679.60 for biosolids

hauling services with Poncia Fertilizer, Inc., Cotati, California.

Staff Report

Attachments:

Resolution No. 1237

Exhibit A_F001601 Third Amendment

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

Wright, to approve Item 6.2 - RESOLUTION NO. 1237 ENTITLED

"RESOLUTION OF THE BOARD OF PUBLIC UTILITIES APPROVING THIRD

AMENDMENT TO GENERAL SERVICE AGREEMENT F001601 WITH

PONCIA FERTILIZER, INC, COTATI, CALIFORNIA." The motion carried by

the following vote:

7 -

Yes:

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

Board Member Grabill, Board Member Watts, Board Member Wright

and Board Member Mullan

7. REPORT ITEMS

7.1

REPORT - ADOPTION OF MITIGATED NEGATIVE DECLARATION,

ADDENDUM, AND A MITIGATION MONITORING AND REPORTING PROGRAM,

AND PROJECT APPROVAL FOR THE COBBLESTONE DRIVE ZONE R2-R4

WATER MAIN CONNECTION

BACKGROUND: This proposed resolution will adopt the Mitigated Negative

Declaration (MND) and associated Addendum, adopt the Mitigation Monitoring

and Reporting Program (MMRP), and approve the Project. The proposed

resolution will direct City staff to file a Notice of Determination for the Project

pursuant to the California Environmental Quality Act (CEQA) Guidelines.

RECOMMENDATION: It is recommended by the Transportation and Public Works

Department and the Water Department that the Board of Public Utilities, by

resolution: 1) adopt the Mitigated Negative Declaration and associated Addendum

for the Cobblestone Drive Zone R2-R4 Water Main Connection Project (Project); 2)

approve the Project; 3) adopt the Mitigation Monitoring and Reporting Program for

the Project; and, 4) direct staff to file a Notice of Determination.

Staff Report

Attachments:

Attachment 1_Alternative 1

Attachment 2_Alternative 2

Attachment 3_Project Additions

Attachment 4_Initial Study_MND_Addendum

Resolution No. 1238

Presentation

Presenters: Andrew Wilt, Associate Civil Engineer and Justin Witt,

Environmental Planner - Brelje and Race

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

Watts, to approve Item 7.1 - RESOLUTION NO. 1238 ENTITLED

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

SANTA ROSA ADOPTING A MITIGATED NEGATIVE DECLARATION AND

ADDENDUM TO THE MITIGATED NEGATIVE DECLARATION, ADOPTING A

MITIGATION MOINTORING AND REPORTING PROGRAM, AND APPROVING

THE COBBLESTONE DRIVE R2-R4 WATER MAIN CONNECTION

PROJECT." The motion carried by the following vote:

7 -

Yes:

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

Board Member Grabill, Board Member Watts, Board Member Wright

and Board Member Mullan

7.2

REPORT - RECOMMENDATION TO AUTHORIZE ISSUANCE OF

WASTEWATER REVENUE BONDS, SERIES 2020A AND WASTEWATER

REVENUE REFUNDING BONDS, SERIES 2020B (FEDERALLY TAXABLE)

BACKGROUND: The Water Department proposes to upgrade its ultraviolet (UV)

disinfection system at the Laguna Wastewater Treatment Plant along with other

capital improvements (UV Disinfection and Diversion Project) and recommends

the issuance of wastewater revenue bonds to raise funds for the UV Disinfection

and Diversion Project. Additionally, the City previously issued its City of Santa

Rosa Wastewater Revenue Bonds, Series 2012A (the “2012A Bonds”) for the

purpose of financing certain improvements to the City’s wastewater system. Staff

has determined that the remaining outstanding 2012 Bonds can be refunded and

generate savings for the benefit of the ratepayers and therefore staff is also

recommending that the 2012A Bonds be refinanced at this time.

RECOMMENDATION: It is recommended by the Finance Department and the

Water Department that the Board of Public Utilities, by resolution, recommend that

the City Council authorize the issuance of Wastewater Revenue Bonds, Series

2020A (the “2020A Bonds”) to fund capital improvements projects of the

wastewater system and Wastewater Revenue Refunding Bonds, Series 2020B to

redeem certain outstanding wastewater revenue bonds for debt service savings

(Federally Taxable) (the “2020B Bonds”; collectively with the 2020A Bonds, the

“2020 Bonds”) and all related actions necessary to carry out the issuance.

Staff Report

Attachments:

Attachment 1_Preliminary Official Statement

Attachment 2_21st Supplemental Indenture of Trust

Attachment 3_Draft Escrow Agreement

Attachment 4_Bond Purchase Agreement

Resolution No. 1239

Presentation

Presenters: Kimberly Zunino, Deputy Director - Water Administration

and Sarah Hollenbeck, Managing Director - PFM Financial Advisors

LLC

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

Watts, to approve Item 7.2 - RESOLUTION NO. 1239 ENTITLED

"RESOLUTION OF THE BOARD OF PUBLIC UTILITIES RECOMMENDING

THAT THE CITY COUNCIL AUTHORIZE THE ISSUANCE AND SALE OF

SANTA ROSA SERIES 2020A AND CITY OF SANTA ROSA WASTEWATER

REVENUE REFUNDING BONDS, SERIES 2020B (FEDERALLY TAXABLE),

REFINANCING OF ALL OR A PORTION OF THE OUTSTANDING CITY OF

SANTA ROSA WASTEWATER REVENUE REFUNDING BONDS, SERIES

2012A." The motion carried by the following vote:

7 -

Yes:

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

Board Member Grabill, Board Member Watts, Board Member Wright

and Board Member Mullan

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 the Budget Review Subcommittee

met on October 13, 2020. Staff provided information on the

progress of the upcoming multi-year rate proposal. Staff and

consultants provided information on the drivers for the proposal

including increase of catastrophic reserve levels, debt service,

capital improvement expenditures and O&M costs.

12. BOARD MEMBER REPORTS

Board Member Grabill requested formation of a subcommittee

related to recycled water issues.

13. DIRECTORS REPORTS

Director Burke reported the Laguna Environmental Laboratory

recently received a new Gas Chromatograph Mass Spectrometer

(GCMS) and staff is developing the methods and proving

proficiency to achieve accreditation. She gave an update on the

Wyland Foundation Mayors' National Water Conservation Challenge.

The City of Santa Rosa placed fourth for cities with comparable

populations. Director Burke detailed the department's response to

the recent Glass Fire. Local Operations staff closely monitored the

water system and all water pump stations operated at full capacity in

impacted areas. Staff flushed and sampled the system and

confirmed no contamination had entered the water system.

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

CLOSED SESSION

The Closed Session was pulled from the October 15, 2020 meeting

agenda.

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION

Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of

Government Code Section 54956.9: One case, related to claims filed by TerraCon

in connection with Contract C02081 - Post Ct and Simpson Pl Sewer

Replacements

15. ADJOURN TO OPEN SESSION AND ANNOUNCEMENT OF CLOSED SESSION

ACTION, IF ANY

16. ADJOURNMENT OF MEETING

Chairman Galvin adjourned the meeting at 2:56 p.m. in memory of

Daryl Clark, Santa Rosa Water staff member, and read a tribute in

his honor.