City Council Chamber

City of Santa Rosa

100 Santa Rosa Avenue

Board of Public Utilities

Meeting Minutes - Final

Thursday, February 18, 2021

1:30 PM

1. CALL TO ORDER AND ROLL CALL

Chair Galvin called the meeting to order at approximately 1:30 p.m.

5 -

Present

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

Lisa Badenfort, Board Member Mark Walsh, and Board Member Glen

Wright

2 - Board Member Christopher Grabill, and Board Member Mary Watts

Absent

2. STATEMENTS OF ABSTENTION BY BOARD MEMBERS - NONE.

3. PRESENTATION FOR OUTGOING BOARD MEMBER

Chair Galvin read remarks and thanked Matt Mullan for his service on

the Board of Public Utilities. Board Members and the Director added

their comments and gratitude.

4. BOARD REORGANIZATION, ANNOUNCEMENT OF CHAIR AND ELECTION OF

VICE CHAIR

Chair Galvin announced that Mayor Rogers has reappointed him as

Chair of the Board of Public Utilities.

Chair Galvin asked for a motion for election of the Vice Chair. Board

Member Wright nominated Vice Chair Arnone and it was seconded

by Board Member Badenfort. Vice Chair Arnone was re-elected with

five "Yes" and two "Absent."

5. STUDY SESSION - NONE.

6. MINUTES APPROVAL

February 4, 2021 - Regular Meeting Minutes

6.1

February 4, 2021 - Regular Meeting Minutes

Attachments:

The minutes for February 4, 2021 were received and accepted as

submitted.

7. STAFF BRIEFINGS

7.1

7.2

7.3

REVIEW OF THE TRUCKED WASTE PROGRAM - LAGUNA TREATMENT

PLANT

The City's Trucked Waste Program at the Laguna Treatment Plant has expanded

over the last ten years and staff will provide an update on the program. The Board

may discuss this item and give direction to staff.

Presentation (added 2/17/21)

Attachments:

Presenter: Renae Gundy, Environmental Compliance Inspector III

ENVIRONMENTAL SERVICES DIVISION UPDATE

The Environmental Services Division includes the Laguna Treatment Plant

Permitting, Laguna Environmental Lab, Environmental Compliance, and the Storm

Water and Creeks team. The presentation will focus on recent projects and

upcoming initiatives. The Board may discuss this item and give direction to staff.

Presentation (added 2/16/21)

Attachments:

Presenter: Sean McNeil, Deputy Director - Environmental Services

WATER AND RECYCLED WATER SUPPLY UPDATE

Staff will update the Board on water and recycled water supply issues. The Board

may discuss this item and give direction to staff.

Presentation (added 2/17/21)

Attachments:

Presenters: Peter Martin, Deputy Director - Water Resources and

Emma Walton, Deputy Director - Water Reuse Operations

8. CONSENT ITEMS

8.1

MOTION - EXTENSION OF EXCLUSIVE NEGOTIATION AGREEMENT WITH

RENEWABLE SONOMA

RECOMMENDATION: It is recommended by the Water Department and the City

Attorney’s Office that the Board, by motion, approve a third extension, through

December 31, 2021, of the Exclusive Negotiation Agreement with Renewable

Sonoma to continue City staff negotiations with Renewable Sonoma regarding

potential lease of City property to locate and operate an organics processing

facility.

Staff Report

Attachments:

Attachment 1_Agreement

Attachment 2_First Amendment

Attachment 3_Second Amendment

Attachment 4_Third Amendment

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

Badenfort, to approve a third extension, through December 31, 2021, of the

Exclusive Negotiation Agreement with Renewable Sonoma to continue City

staff negotiations with Renewable Sonoma regarding potential lease of City

property to locate and operate an organics processing facility. The motion

carried by the following vote:

5 -

Yes:

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

Board Member Walsh and Board Member Wright

2 - Board Member Grabill and Board Member Watts

Absent:

9. REPORT ITEMS

9.1

REPORT - 2021 WATER AND WASTEWATER COST OF SERVICE STUDY

AND PROPOSED FY21/22 THROUGH FY24/25 RATE SCHEDULE, AND

PROPOSED UPDATE TO WATER SHORTAGE RATE STRUCTURE

BACKGROUND: In 2018, Santa Rosa Water (SRW) hired The Reed Group, Inc

(TRGI) 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. TRGI found SRW’s financial health is such that at the end of the current

fee schedule, set to conclude on June 30, 2021, only moderate annual water and

wastewater rate increases would be required. Proposed increases between 2-4%

each year for water fixed and usage charges and 2% each year for wastewater

fixed and usage charges are proposed to help ensure that SRW continues to meet

all service and financial obligations.

In July 2021, SRW amended the TRGI contract to have TRGI analyze and update

the Water Shortage Rate structure, which is part of the City’s Water Shortage

Contingency Plan (Shortage Plan). An update to the Shortage Plan is required by

State Law and must be submitted to the State by July 1, 2021. To assist SRW with

managing water supply and potential financial deficits during declared stages of

drought or emergency, an update to the Water Shortage Charges and Excess Use

Penalties are also being proposed.

RECOMMENDATION: It is recommended by the Board of Public Utilities Budget

Subcommittee and Santa Rosa Water that the Board of Public Utilities, by three

resolutions, recommend that, after compliance with applicable law and conduct of a

public hearing pursuant to Proposition 218 on or about May 25, 2021, the City

Council 1) enact increased charges and rates for water services; 2) enact

increased charges and rates for waste water services; 3) adopt a change to the

Water Shortage Rate Structure.

Staff Report

Attachments:

Attachment 1_Rate Update Study Report

Resolution 1246_Water Rates

Resolution 1247_Wastewater Rates

Resolution 1248_Water Shortage Charges

Presentation (added 2/16/21)

Presenters: Kimberly Zunino, Deputy Director - Administration, Bob

Reed, The Reed Group, Inc. and Mark Hildebrand, Hildebrand

Consulting

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

Walsh, to approve Item 9.1 - RESOLUTION NO. 1246 ENTITLED

"RESOLUTION OF THE BOARD OF PUBLIC UTILITIES RECOMMENDING

THAT AFTER COMPLIANCE WITH APPLICABLE LAW AND CONDUCT OF

PUBLIC HEARING PURSUANT TO PROPOSITION 218 ON OR ABOUT MAY

25, 2021 THE COUNCIL OF THE CITY OF SANTA ROSA ENACT

INCREASED CHARGES AND RATES FOR WATER SERVICES." The

motion carried by the following vote:

5 -

Yes:

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

Board Member Walsh and Board Member Wright

2 - Board Member Grabill and Board Member Watts

Absent:

A second motion was made by Vice Chair Arnone, seconded by Board

Member Walsh, to approve Item 9.1 - RESOLUTION NO. 1247 ENTITLED

"RESOLUTION OF THE BOARD OF PUBLIC UTILITIES RECOMMENDING

THAT AFTER COMPLIANCE WITH APPLICABLE LAW AND CONDUCT OF

PUBLIC HEARING PURSUANT TO PROPOSITION 218 ON OR ABOUT MAY

25, 2021 THE COUNCIL OF THE CITY OF SANTA ROSA ENACT

INCREASED CHARGES AND RATES FOR WASTEWATER SERVICES."

The motion carried by the following vote:

5 -

Yes:

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

Board Member Walsh and Board Member Wright

2 - Board Member Grabill and Board Member Watts

Absent:

A third motion was made by Vice Chair Arnone, seconded by Board

Member Walsh, to approve Item 9.1 - RESOLUTION NO. 1248 ENTITLED

"RESOLUTION OF THE BOARD OF PUBLIC UTILITIES RECOMMENDING

THAT AFTER COMPLIANCE WITH APPLICABLE LAW AND CONDUCT OF

PUBLIC HEARING PURSUANT TO PROPOSITION 218 ON OR ABOUT MAY

25, 2021 THE COUNCIL OF THE CITY OF SANTA ROSA ADOPT UPDATED

WATER SHORTAGE CHARGES AND EXCESS USE PENALTIES TO BE

ENACTED IN THE CASE OF A WATER SHORTAGE EMERGENCY." The

motion carried by the following vote:

5 -

Yes:

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

Board Member Walsh and Board Member Wright

2 - Board Member Grabill and Board Member Watts

Absent:

10. PUBLIC COMMENTS ON NON-AGENDA MATTERS - NONE.

11. REFERRALS - NONE.

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

13. SUBCOMMITTEE REPORTS

Chair Galvin announced his appointments to the Board

subcommittees.

City Council/BPU Liaison Subcommittee - Dan Galvin, Bill Arnone,

Lisa Badenfort

Water Conservation Subcommittee - Mary Watts (chair), Chris

Grabill, Mark Walsh

Contract Review Subcommittee - Dan Galvin (chair), Lisa Badenfort,

Mark Walsh

Budget Review Subcommittee - Mary Watts (chair), Mark Walsh,

Glen Wright

Compost Facility Negotiating Committee - Lisa Badenfort

Groundwater Management Ad Hoc Committee - Chris Grabill, Glen

Wright

Recycled Water Ad Hoc Committee - Dan Galvin, Lisa Badenfort

14. BOARD MEMBER REPORTS - NONE.

15. DIRECTORS REPORTS

Jennifer Burke, Director, provided an update on the City Council

Goal Setting session that began on February 17. She informed the

Board that the annual budget process is underway and staff are

entering budget information. Director Burke also reported the

FY21/22 Sonoma Water Transmission Budget and Rates will be

presented at the March 4 BPU meeting for recommendation to the

City Council.

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

CLOSED SESSION

At 3:09 p.m., Legal Counsel Maddow announced the Closed

Session item.

16.1

CONFERENCE WITH REAL PROPERTY NEGOTIATOR

(Government Code Section 54956.8)

Property: 601 Piezzi Road, APN 130-230-064

Agency Negotiators: Stephanie Valkovic, Associate Real Property Negotiator and

Jill Scott, Real Property Negotiator

Negotiating Parties: County of Sonoma

Under Negotiations: Price and terms of payment.

Meeting went into Recess

Meeting Reconvened

17. ADJOURN TO OPEN SESSION AND ANNOUNCEMENT OF CLOSED SESSION

ACTION, IF ANY