 Good afternoon call the meeting of the Board of Public Utilities for the City of Santa Rosa to order if we may have a roll call, please Chairman Galvin here vice chair and Oni here board member bennford here for member banister Or member Dowd here board member Grable Board member walks here Thank you Statements of abstention by board members Mr. Chair, I have to abstain on one of the resolutions in item 7.3, I believe it is correct, so I will be abstaining from one of those two resolutions Any other statements of abstention? Thank you, and I hesitate the reason for the abstention is because one of the projects is close to my residence That's why I'm abstaining We have no study session the minutes of April 4th will be Approved and and entered and at this point we're going to reorganize a little bit the agenda and we're going to have the director's report so Director Burke Thank you. I appreciate the reordering of the agenda, and I also appreciate the board Indulging me in a little bit of time for the director's report. I have a few things that I'd like to go over today First I just wanted to let the board know that you received an email from deputy director Walton regarding The work that we're doing with renewable Sonoma on the regional compost facility Just wanted to make sure the board was aware that we'll be working with the council BPU liaison subcommittee throughout the process to have guidance on this project and we will be scheduling the initial subcommittee in the coming weeks and Updates and recommendations will come to the full board and council for consideration We also had recently received Some questions from some members of the public around the treatment plant and they've expressed interest in being part of the discussions We've been providing information to these folks and we will ensure that they're invited to all of the Subcommittee meetings as well as any other public meetings we have But we wanted to make sure that in case the board or the council received any questions We included some talking points in that email for you all and if you have any questions or need any additional Information, please feel free to reach out to either Emma or myself Wanted to also give the board a quick update on the GSA last Thursday The Santa Rosa Plain groundwater sustainability agency board met There were two items of significant interest that were on the agenda one was the consideration of Fees and the second was the well registration ordinance As the board may recall when the GSA was first created the member agencies agreed to fund the first two years of startup funding With the understanding that the GSA would be self funded after that The GSA board hired a rate consultant and they explored many different options over the last two years at the last GSA board meeting GSA staff recommended the fee that was Consistent with what we would have been looking at which was based on actual pumpage for Municipalities and mutual water companies as well as investor owned utilities and based on estimated pumpage for agricultural and residential The estimated fee is roughly $20 per acre feet pumped per year so For residents that rely solely on groundwater that would be roughly eight to thirteen dollars per year for the next three years for residents that only use groundwater to Supplement their usage for irrigation only it would be roughly one to three dollars per year for the next three years At the board meeting the county and water agency board members Suggested an alternative proposal that would provide a direct contribution for both the county and the water agency To offset the fees for residential and possibly Ag users as well There wasn't any formal details at the meeting But we are expecting a formal written proposal soon And I just wanted to clarify that the board did not take any action at their April meeting They will be Considering the fee and potentially this alternative proposal at their June board meeting So there might have been a little bit of misunderstanding that some action was taken on the fee, but no action was taken at the meeting The other thing is that the board also introduced an ordinance requiring registration of groundwater Users in the basin and the groundwater user registration program is a simple free one-time Program that will allow the GSA to get basic information on groundwater users in the basin The first reading of the ordinance did occur and the board will consider adoption at the ordinance also at the June meeting Then I wanted to talk about two personnel items that we have first I just would like to say that I'm very pleased to announce that Sean McNeill Who's in the audience has been selected as the deputy director of environmental service Managing the environmental services division and compliance with our regulatory permits both for the treatment plant and storm water Sean has worked for the city for the last 12 years Most recently as our sustainability coordinator for our water use efficiency team and prior to that on the storm water and creeks team Sean has a by a lot biology degree and has provided Biological consulting work and environmental permanent assistance for a number of the departments in the city We're really pleased to have Sean on as our permanent deputy director and environmental services So congratulations Sean and Then I think Gina's gonna help me and I'd like to call Rick Santorini to come on down to the table, please So it is with a bit of a heavy heart That I would like to recognize that one of our longest tenured employees Rick Santorini will be retiring next week. Oh Okay, I have to go slow Gina will fix our PowerPoint and in just a second So Rick Santorini will be retiring next week Rick started with the city 30 years ago as a temp maintenance worker in our reclamation section Shortly after that he took a permanent position in the water section even before water and sewer was combined into one section Rick was always known as an extremely hard worker with many of his co-workers Remembering him often being covered in dirt and mud because he didn't slow down to keep himself from getting dirty There's like pictures we would have had right now Most folks that have been here for a while will also remember that rick used to have very long hair So he was well known as well. Who who helped you when you were out in the field? Well, someone who had very long hair We always knew it was rick Rick demonstrated many talents as a system operator and learned our distribution system quickly He is still known for his ability to rattle off underground pipe size and material for most areas of town Rick promoted to the construction senior where he quickly earned a reputation as the first person to jump into the trench and start working rick demonstrated his seemingly unlimited water and sewer construction skills in this position and was a mentor to many of these employees To many employees that are still working for the water department today Rick promoted up and ultimately became a utility system superintendent and the chief operator of our water system This has been an excellent fit for rick as it gives him the opportunity to combine his system knowledge construction skills and pump station technical know-how with his administrative and budgeting skills While also allowing rick to do what he does best connect with other employees and providing outside outstanding customer service rick is known throughout water and most of the city as kind hearted always willing to help with the project Be on a committee or just do whatever it takes to get the work done and make people happy And it's fitting on take your work to take your child to work day. There's rick with his son rick's approach and willing to help has made him a bit of a legend in the water department rick is a true leader and his leadership and flexibility have been the foundation Of several of the significant changes in the local division When the water and sewer sections were combined and all employees were required to rotate rick's leadership helped Ensure that his new concept wouldn't fail this new concept wouldn't fail Whenever there was a large management rotation rick would make the most of it as he always believed that it would make the department a better place to work During the water contamination issue I had the extreme pleasure to work closely with rick and he was an invaluable member of our task force Using his extensive knowledge of the system to help us resolve the issue rick has been such an important member of the water department team for so many years that we are all a little more than sad to see him go He's been a trusted friend to many for the past three decades And although we will selfishly miss having him around We wish him the very best in his retirement. Thank you for your dedicated service tricky ricky And I don't know rick if you have something you'd like to say if others would like to come down and say a few words Feel free Oh when I say I was going to thank you jennifer for kind words it's um I think it's been an honor and a privilege to work here. I came here 30 years ago Basically not knowing what I wanted to do with my life. I gone to school work dead in jobs Doing just still trying to figure it out and when I got here the training opportunities that were here And the advancement of possibilities if you worked hard We're endless and I owe a lot to a lot of people a lot of them don't work here anymore But you know it's like steve backman jim huddle were past superintendents that helped me a lot with my career and our current employees and current management staff so and Miles ferris was a big played a big role in the way this department grew and improved And I think it showed how we handled the fires and handled the the post contamination of the fires of the The training and abilities that we were allowed to grow with here. So thank you very much Thank you for your years of service and much good luck to you in your retirement I hope you're going to plan lots of trips and do lots of fun things. So I got a lot of you've earned it I got a lot of things at home that need to be done But and I people ask about how what do you gotta do to retire and I go all you gotta do is be our long time And get old so So anyway, thank you. Thank you So, um, uh chair galvin, I do have to step off the dais But uh, deputy director walton is gonna come up and fill in for me for the rest of the meeting. So thank you Thank you very much We'll move to our one staff briefing 5.1 on our earth day festival Ms amador Good afternoon chairman galvin and members of the board. My name is tasha right and I am san rosa waters energy and sustainability coordinator and our team is blessed with the responsibility each year for organizing the earth day Onstage event. So I am joined today with um Be amador here and she's our uh coordinator for this year And so uh before I turn it over to her to have her give you all the details of the day I just want to say thank you very much for your support because without your support We wouldn't be able to do this each year and also, um It's it's been wonderful that we have the support of the other departments and staff around the city Because they also make this possible. So thank you to all of them. They know who they are so And now i'm going to turn it over to be and she will give you the details Thanks Good afternoon chairman galvin and members of the board Um, she introduced me. My name is be amador. I'm an administrative technician for san rosa's water San Rosa waters energy and sustainability division I'm really happy to be here to formally invite you all to our earth day event happening saturday april 27th from noon to four this year Well every year our earth day on stage is a free family festival Family friendly festival that brings our community together through fun activities live performing arts great food And inspiring exhibits to raise environmental awareness We're proud this year to host several workshops that will we hope will provide resources for our community members Some of the workshops will include the california native plant society renewable sonoma Sonoma county waste management doing garbage recycling and composting at home trying to educate all of our citizens and community soils will be doing Compost bins for the backyards As usual we'll provide a showcase of great performing arts sponsored by the recreation and parks department The performances include japanese drumming earth day skits for kids and well this year we're featuring a band called de jinn And their their music is described as including r&b blues calypso reggae And they perform their songs in french english and spanish This is our second zero waste earth day event And we'll have the free valley bike parking like we do local food and drinks and a beer and wine booth hosted by land paths Our mobile hydration station will provide ice cold santa rosa water to event goers And stormwater and creek staff will provide pollution prevention tips our water use efficiency team will be on hand with smart water tips rebates and the programs they Provide compost staff will provide samples of our water smart compost Classroom safari will be back this year with giving providing education about animals and conservation and they bring several Rescue animals including a sloth and a hedgehog their big big attraction In addition these great offerings there will be eco-friendly activities for all including the always popular kids section That will include nature discovery tables seed planting smoothie making with a bicycle powered blender And lots more so we hope you'll be able to join us for a fun-filled day And for more information Please visit our website srcity.org slash earth day Thank you questions I've attended the last couple years and it's a wonderful event Unfortunately, I'm going to be on an airplane when it starts on saturday the 27th, but I know you'll have a great event so Much good luck. Thank you Thank you We have one consent item item 6.1 I'll move the consent item I'll second Motion by vice chair Arnone seconded by board member watz to approve item 6.1 all in favor say aye Any opposed any abstentions passes 6-0. Thank you We have two report items and the presentation for both of them is going to be done Uh, I believe at one time So item 7.1 is the report item for recertification of the sewer system management plan and recommendation to the city council Chair just quick correction on that I think it's 7.1 will be an independent report item and then 7.2 and 7.3 on the budget will be presented as one item Sorry, clarify. No problem. So we'll do 7.1 first deputy director shavoni And this must be cameron Yes, this is my daughter cameron shavoni Hi Hi Welcome Good afternoon chair galvin members of the board We are here today seeking your approval and recommendation to the city council for the five-year recertification of our sewer system management plan or more commonly known as our ssmp So just a little background to begin with why we have an ssmp in 2006 the state water resources control board adopted order number 2006-003 The state water resources control board regulates the sanitary sewer discharges and other activities that could potentially degrade water quality throughout the state This 2006 order included a general waste discharge requirement or a wdr That all collection systems must develop a mechanism to reduce sanitary sewer overflows Santa Rosa waters collection system is subject to this waste discharge order. Therefore, we have the ssmp The wdr required that each agency create an ssmp to provide a plan and schedule To properly manage operate and maintain all parts of their sanitary sewer system in order to help reduce and prevent sanitary sewer overflows or ssos As well as mitigate any ssos that do occur The state water resources control board protects Protects california's water quality through the regulation of wastewater and storm water discharges and other activities That could degrade water quality throughout the state It should be noted that this wdr It was Really directly generated from the 2006 order and it's essentially it's linked to our npdes permit So it's the portion of the permit that sort of regulates our sanitary sewer system the collection system Over a few of the goals of our ssmp the water department continues to confirm Conform with the goals identified in our ssmp through implementing ongoing maintenance programs and capital improvement projects As is described in our ssmp we provide emergency response cleanup Source mitigation and notification follow-up for all ssos in accordance with the guidelines of the ssmp overflow emergency response plan We perform regularly scheduled sanitary sewer maintenance sewer system maintenance cctv inspections and we request capital improvement projects To be completed on our system based on the deficiencies that we find through our cctv inspections To help minimize inflow and infiltration or ini We inspect our sewer system by smoke testing and by collecting data during our cctv inspections And we also maintain and enforce sanitary sewer system design and construction standards That help our operation staff operate and maintain our system effectively As described in the ssmp each organization shall shall conduct periodic Internal audits appropriate to the size of the system and the number of ssos that are that happen with that system At a minimum these audits must occur every two years and a report must be prepared and kept on file at the agency This audit shall focus on evaluating the effectiveness of the ssmp And the organization's compliance with the ssmp requirements Included in our most recent audit are metrics and evidence of our effective ssmp such as our excellent ssso record As well as recent accomplishments, but like being awarded the cwea's large collection system of the year for the entire state Because this is a living document We are constantly looking for opportunities to improve our compliance and update information during our audits So it's changed in the 2019 version as I mentioned This is a living document and it is intended by the state to be a living document They expect that change they expect changes to be made continually throughout the years without going to the governing board Thus the requirement of the five-year recertification be brought before you and currently through the before the city council We are continually updating staff org charts as you see on the slide Contact information as well as system statistics and data New to this draft is an LRO certification page Which clearly shows that all of the ssso's that do occur on our system And any changes to the document have been reviewed and signed off by our designated legal reporting official There's an appendix which contains a change log This is a recent requirement that will be used That will use from this recertification moving forward to document any major changes in the ssmp Our refined and improved spill response documentation includes a post spill meeting requirement for all sso's that occur This allows us to focus on constant improvement by reviewing our previous response We also continue continually update our spill response guide sheets These guiding documents include Excuse me Who who to contact if there's a spill and the required notification and timelines for each agency that will be notified They also contain line items required for documentation of all spills And it's a good way for us to document any spill that happens in a proper manner I would like to note that while updating this draft feedback was solicited from the city attorney's office our capital improvement team Asset management environmental compliance and our communications and outreach team to ensure that any group represented within this document Was represented accurately So why the five-year recertification? The wdr requires that the ssmp be recertified at a public meeting every five years They also require that any significant operational or program changes be included in the recertification Fortunately, we don't have any significant operational changes that need to be included in this recertification As I mentioned earlier, we are very proud of this award-winning document and using it as a guide has helped us achieve an Impressively low sso record I would like to mention that this is this record is a direct result of the detail and impressive work completed On this document by our utility system superintendent ron marin czech who is here in the audience As well as our qualified staff of system supervisors and utility system operators future approval of the Future approval authority. We will be presenting this recertification Hopefully with your recommendation to the city council on april 30th section 25 of the city of santa rosa charter Grants the bpu general policy authority and direction over management and operation of the city's water and sewer utilities We will be requesting that the city council grant the board authority for future recertifications at the april 30th city council meeting Should this request be granted that will be The one significant change that we intend to add to the document So as I mentioned, it's a living document and once that happens We will add that into the it'll be recertified to the state by the first of may And we will add the information that going forward each recertification or five-year recertification will be done To the board of public utilities, not the city council We do think that granting this authority to the board should create a time leader process That will meet the requirements of the wdr and the city charter And that brings us to the recommendation It is recommended by the water department that the board of the public utilities by resolution Recommended that the city council approve recertification of the super of the sewer system management plan or the ssmp As required by the state water resources control board order number 2006-003 statewide general waste discharge requirements for sanitary sewer systems and delegate authority to the board of public utilities to approve to approve future recertifications of the ssmp And of course, we'd be happy to answer any questions you may have Nice job I'm just going to say I don't think I've heard a better reading of a resolution ever Board member doubt All right Cameron, I was just wondering what is your goal as to how soon you could start to work for the water department You did a very good job Thank you Any board member questions or comments If not, we have a resolution in front of us I would move that the recommendation so adequately read by miss shivoni be adopted as read Motion by board member banister seconded by board member battenfort to approve item 7.1 and adopt the resolution All in favor say aye. Aye. Any opposed? Any abstentions? unanimous, thank you Enjoy the rest of your day with dad. Thank you, Cameron. Thank you Okay, item 7 2 is the report of the approval of the preliminary fiscal year 1920 sub regional system operating and maintenance capital improvement and debt service budget And 7.3 is the waste water portion Deputy director Zanino welcome Thank you I don't know how I can follow that but I'll try my hardest All right, good afternoon chairman galvin and members of the board We had a study session a couple of weeks ago To prepare you for this recommendation and now I am here today to request a recommendation to the city council for All three of our fund budgets We'll talk about first the rate schedule staff assumptions revenues versus expenditures our reserve balances department expenditures the onm budget the sub regional budget and then cip This is just a reminder of our approved five-year rate plan that is currently in place We are requesting that it be recommended that the rate increase stay as planned for this year That will be two and a half percent on sewer usage two and a half percent on sewer fixed The water usage increase which we have a slide on later on Will be just the pass through on the usage and then five percent on the fixed Staff assumptions this year are that water use will remain the same or remain flat We are also projecting that sewer or wastewater use will also remain flat As we discussed previously, we are expecting for demand fees to decrease slightly We are expecting that because we're seeing a trend downward Even this year and that's as a result of the recovery efforts When properties are being rebuilt they have already paid their demand fees so they don't have to repay those fees The sub regional miscellaneous revenues will increase We have had a significant increase in fees collected for our high waste discharge And that is due to some changes to the program itself Which has brought in a lot more business for us We are not going to increase them however as high as they are trending currently because pedaluma Is also looking at opening a program as well And so we expect that some of that business will end up at the pedaluma treatment plant instead We expect that all other revenues will remain flat and that the rates will increase per the current schedule These next three slides I've just put together for you so that you can see how our revenues and expenditures are matching up this year We're right on target with all three of our funds It also just gives you a look at where the funding sources are for our expenditures So this is the water fund This is the wastewater fund And then the sub regional fund the sub regional fund. I'll just remind you matches up exactly because Revenues into the sub regional fund come from the distribution from the five partners and their contribution to paying for the expenditures of the treatment plant As requested in the study session It was requested that we take a look at our reserves so that you would all know where our reserves are sitting We are very in a really healthy place still with our reserves We have our operating catastrophic and then the undesignated reserve or the undesignated fund balance Which is still quite high for us. So that's great news especially after what we went through over the last almost two years now And I I will point out that we will probably be bringing to the budget subcommittee Some discussions about whether or not we should be changing those reserve levels Those will probably be discussions that we'll be having throughout the year After having been through the disaster that we went through We know that it could have been much worse had we had to do the replacement of that main that was damaged On the wastewater side, you can see we have the same Operating catastrophic and undesignated But we also have on the wastewater side based on going out for and receiving bonds a rate stabilization reserve as well On the sub regional side, we have all of the same reserves as well except for we also have A geysers reserve and then we also have a small it's a riparian reserve as well Next I'll go into the department expenditures I'm giving you a look this year, which is a little different than you typically see but this is how city council usually sees Our expenditures first they're laid out by program And the one thing I will point out however is that this will differ from what city council would see based on the fact that you are only approving the water department Wastewater water and sub regional funds But we also have added to the water department the storm water and storm water is approved by city council because that comes from general fund and assessments, I should say as well So that was a look at our let me just start back up for a second This is a look at our expenditures by program I do want to point out and we will talk about it a little bit more later how the administrative fund has gone up Significantly this year the reason for that has just been because of shifting staff We have moved all of our administrative staff into the administrative fund So that as different funds if in water or local wastewater or sub regional we need to distribute That staff out differently We can just keep them in the administrative fund and distribute them out And charge out to those funds based on where those support staff are working We we pretty typically will be moving those administrative staff around Based on the different needs that are happening in each one of the funds And we're just providing charts so that you can just see in a graphic way where the The department expenditures land in the programs And then next i'm showing you expenditures by category So this just gives you each of the categories and where We are increasing Purchase of water is going up But that is just based on the pass-through rate from the sonoma county water agency or sonoma water as they're known now And then those indirect costs you see Have a significant increase and that has to do with that shift in staff Those indirect costs include city overhead. They also include The cost of the administrative fund as it's distributed out to the other three funds So that's why you see that significant increase there And then of course you see quite a significant decrease on the cip and o&m project line And that's just because last year we budgeted for all of the fire projects And then another graphical of where the money is going Next i'll go into the operations and maintenance budget for 2019 20 Overall o&m for the entire department is up 1.6. So that's all three funds averaged out to 1.6 increase Which is Really good for us that includes salary increases And benefit increases and other costs that we know are associated around the city We are continuing the femur recovery process. We talked a lot about that in the study session We will continue to do all work that we can to assure that we receive as much Reimbursement for those fire related projects as we can And then we are we are also in the process of completing our long-range financial plan Which will be used very closely in the coming years when we are taking a closer look at Cip and our infrastructure needs and how we will need to fund those moving forward Some of the fund changes are once again that administrative fund being up by 10 per 10 and a half percent And that has to do with those nine staff members that we moved into it The water fund is up Slightly at 4.3 percent But this also has to do with a little bit of shifting that went on We have some programs that don't always catch up with the budget system Or the budget system doesn't catch up with the programs that move employees around And so when there's a rotation Some of those employees that haven't been processed through the system don't end up in the right spot for the budget And so while they get charged to the right spot always because The hr system, you know Or the payroll system make sure that that happens We had a little bit of a shift that didn't happen because we had so many positions that were vacant for a long period of time So that's why you see the shift up in water and down in the wastewater fund We also deleted a couple of positions from the wastewater fund contributing also to the decrease And shifted some of that admin staff And then on the sub regional side the fund is up just by 0.7 percent And this is just I have three more slides for you more graphicals of where the money is going water fund The wastewater fund And then uh, I wanted to talk about the purchase of water So we talked about how on the usage side there will be an increase for our ratepayers on usage in the water side and that just basically comes from an approved pass-through The snow more water snow more water or the snowman county water agency increases their rates And when they increase their rates we pass that through directly to our customers Their rate increase this year is 4.6 percent And you saw that earlier in the year and approved a recommendation for that The result of this is a 1.9 percent increase to our average family of four customer bills It's about 87 cents But I also provided for you how much it increases each tier in our water usage, which is 11 cents Which is tier one or indoor water use and 12 cents for tier two Which is outdoor water use It was as I said approved for recommendation by the bpu and the city council It has also been before the attack and the whack and both of them have also approved It will be at the supervisors next to our the governing board for the snowman county water agency Position changes that we have this year You saw last year that there was a sustainability technician that was to be reclassified to a sustainability representative That was actually already completed But we just wanted to make you aware that it did finally happen because it took quite some time for that to happen We are deleting some positions one sustainability technician Two utility system operators One skilled maintenance worker and one environmental compliance inspector All of these are vacant positions and have been vacant positions For more than a year The two utility system operators and the skilled maintenance worker however were part of The work that was done around the cost study And so these were to cover the approval for the cost study that they did for increases These three positions were part of that work to Cover the cost of those increases for other positions And then of course the move of staff to the administrative fund Before I move on to sub regional are there any questions about the water or the wastewater fund o&m that I can answer All right, so we'll move on to the sub regional contribution allocations for 1920 This chart just shows you what our operating expenditures are Additional costs that come in there's a small loan that goes just to the sub regional side So we don't distribute it among the wastewater as well, although our contribution goes towards that Um, we have been increasing our cip capital cash funding For the last several years. We increase it by a million dollars a year and are doing that once again this year. So last year Um, although we did increase it even a little bit more last year We we decided to fund an additional project last year It would have been five million this year at six million and it's planned to go up by a million dollars each year So that we can try and start cash funding more projects And reduce, you know, additional debt that we are going to have to incur in the future But hopefully this can help us incur less debt And then this just depicts our reserves as well and then down at the bottom You will see that there is less the revenues. So there are Miscellaneous revenues part of that that high waste waste strength that I was talking about earlier Those revenues actually come off of the cost prior to distributing the cost to all of the partners The onm and the cip contribution are based on previous flows into the plant that are actually metered flows by each of the partners This year based on some requests from the sub regional technical advisory committee And then also this was brought before the budget subcommittee We have done or agreed to do a one-year deviation on how we calculate the flows The one-year deviation is for o and m to be based on a one-year flow And then for the capital improvement program to be distributed based on a five-year flow Which we feel is very consistent with the five-year plan We spend all operating costs in a one-year period But we do not spend and we do not plan for cip in a single year We approve a single year, but we plan for five years. So we felt that that was a fair request However, we didn't want to put this into place permanently We want to take a look at it and see how it works And then have this next year to really discuss if this is the best way to move forward Or if maybe there's some other ways that we should be moving forward And then debt service is based on when debt was incurred. So that does not change that is strictly by debt schedules It is up slightly this year, but that has to do with the refunding that we did However, the refunding is going to serve us well To net out to about a 1.8 million dollar savings In our debt at the end of of the cycle It just that we applied some of the money that we had already collected this year towards the principal of the bond that we were paying off Before we bought the new bond and so there's a slight increase this year But we'll see that start going down starting next year All right, I'll let you ask any questions for sub regional if anybody has any before we move forward No, okay So next is cip We just like to show off all the assets that we take care of There are a lot of them out there Funding this year is going to be as planned. We are going to be Budgeting 13 million or adding 13 million to the cip for water We will be adding 12 million to the cip for wastewater and then the 6 million for sub regional Which will you see which you will see increasing each year by a million so next year that'll be up to seven I will mention that there is a lot of work that is going on around the city which is Examining our infrastructure and our infrastructure needs water will be a big part of that Determining where we need to be as far as how much we should be funding for our infrastructure And so as that comes forward I'm sure that the budget subcommittee will be called to be taking a look at some of that as well And so we will be determining what our levels of funding should be on a yearly basis And we'll be using that long-range financial plan in order to help us do that as well These next pictures just show you Where the money is being distributed as far as groundwater or whether or not it's pipes pumps There is a little bit of money going towards public assistance projects, which are the FEMA projects However, we are almost fully funded on those FEMA projects So there's only little little bits of money going into those the rest of that had all been budgeted last year And then you see that hmgp projects those are actually grant projects that we are applying for Grants that would be the city's portion of those grant projects That will be coming forward and those are as a result actually of disasters. And so we're going through the process of Applying for several grants which can can give us up to 10 million dollars For each one of or I think it's 75 percent now It was capped at 5 million before but now it's 75 percent of each of the projects So we're really actively pursuing all of that grant funding this year On the wastewater side again, you can see where the money is going Services, mains, trunks, that little bit of public assistance again We are working on some master studies and then some improvements to lift stations and other facilities This just depicts where the projects are are going to be this year And we just like to show you that we're spreading it around the whole city So all over the city has lots of CIP projects going on this year Or being budgeted for at least On the sub regional side The majority of the work is going to be on infrastructure in the plant Or at the plant There is some work being done on ponds, which is a significant project So that's where the majority of the money will be going of that six million cash funded CIP this year And this just shows you at the plant where the different areas are that will be worked on Any questions on CIP before we go over the rest of the schedule? So the budget schedule for this year the bpu budget subcommittee met three times I want to say thank you. It's not an easy task. It's a lot of work for our subcommittee, but They dig in with us and and look at all the details So it's very appreciated by staff to get that feedback before we get before you for a recommendation We met with them on the 27th of february march 7th and march 28th Today, we're here requesting a recommendation for city council We will be at city council on april 30th handling the sub regional preliminary approval We need to go to the city council prior to may 1st To get a preliminary approval for the sub regional allocations so that the contributions can be Preliminary of preliminarily approved so that all of our partners can actually put those into their budgets And that's why they do that And then city council budget study sessions will be on may 21st and may 22nd And then the public hearing for the budget adoption will be in june And with that this water and wastewater has the two resolutions. So there is one that Vice chair Arnone will not be voting on and then one that all of you will be voting on So 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 2019-20 Water fund and local wastewater fund operation maintenance and capital expenditure appropriation requests And then i'll do both recommendations and then you can do the resolutions. Okay It is recommended by santa rosa water staff and the technical advisory committee that the board of public utilities by resolution Recommend that the city council approve the preliminary 2019-20 sub regional system operating and maintenance Capital improvement and debt service budget An allocation of costs for the purpose of notifying the participating sub regional user agencies of their allocation of such costs And with that i'll take any questions Or comments before we move on to your resolutions board member dowd I Wanted the board To know that as a chair of the budget review subcommittee And which included my colleagues board member watz and board member grable We have we have agreed unanimously to support these resolutions that are now before the board But as deputy directors anino mentioned in her presentation, which was quite well done Uh, it seems like every four or five years. We need to take a good hard look at what we're doing And it's about time to do that now To be sure that our cip programs are keeping up with the aging of the system And if you look at in particular the debt obligation at the treatment plant facility It it sucks up a lot of funds We had we had to do that in order to keep it operational but I think we need to as deputy directors anino said We have been trying to pay that down a little by little But I think we need to take another good hard look at it because it's using up so much of the funds coming in from the city and its partners that If there's ways to Do it more aggressively We we need to look at that part of this if you look in earlier slides where the city council About four or five years ago kind of gave us a ceiling as what we could do to rates and That was comfortable in a way But I think we need to revisit that at this point and especially as we have our meetings with the city council the We just need to be sure that we're in concert and those may need to be adjusted going forward And then the last thing that Every department in this city as well as the county of sonoma is still dealing with What is the FEMA replacement going to be and is it going to create shortfalls in our budgetary process because we don't get all the funds that we Think we're entitled to And that will need to be looked at as we go forward to seeing what funds actually do Come into the city So there's just a lot of things on the menu at this point and I want the chairman and the other board members to know that I certainly encourage the Chairman is continuing the assignments of the budget review subcommittee to continue to work on some of these things So we Can be more certain that we haven't left gaps someplace Other than that I the the subcommittee and I certainly support the resolutions before you Any advice chair on any I just wanted to thank you for adding the slides on the reserves And I also appreciated your comment that we are anticipating perhaps revisiting our reserve policies I think that's a really good idea given the amount of undesignated reserves that we have there I think time for review of those reserve amounts and categories is a very good idea. Thank you Other board member questions or comments Before we take a vote I have one speaker card. Mr. Harder you listed on 7.3 But since we're kind of talking about both of them, we'll give you your opportunity now That there we go bob harder formerly deputy director for engineering for the department And I've been kind of following the meetings especially the budget meetings just in case And I want to publicly thank kimberley For helping get me up to speed on the changes that i'm used to seeing especially a lot of nuances on how we use the computer to report things Particularly helpful for me was the update on the cip The cip backlog and the cip underground utility impact fee So kimberley Thank you very much Thank you for your comments So because of the potential abstention we'll take these individually so item 7.2 we have a resolution 7.1 we have one too 7.1 is a resolution I think it's 7.2 and 7.3 So we'll have one resolution for um 7.2, which is the sub regional And then 7.3. We'll have two separate resolutions the first one Board member arnone will abstain from okay So we'll take 7.2 first I think that's one I can vote on so I'll move it I'll move a resolution of the board of public utilities recommending the city council approve The recertification of the sewer system management plan That's the wrong one That's the wrong one 7.2. Maybe I won't move it Okay, I thought that was the right one Did we already move the 7.1? I guess we already did that one. Yes, that was deputy director shimoni Okay And cameron Close The one I would move then would be the one with 7.3 and the one that I can vote on 7.2 I'm gonna quit. All right, somebody else make a motion I'll move item 7.2, which is the recommendation for the water and wastewater Uh budgets, I'm correct Is that regional 7.2 7.2 is the subregional The subregional budget So I think we had a motion by board member watts Subregional As amended As amended and seconded by board member batten for to approve item 7.2 and the resolution all in favor Hi, any opposed No abstentions. Okay. That takes care 7.2 and 7.3. We have two resolutions So and The one that that uh vice chair anoni is not to vote on is the cip The resolution one Is the um is the resolution um where uh board member anoni will be abstaining All right, so if we can deal with resolution number one first, please I'll just reverse that As I'm looking at it Resolution number one is The one that excludes the project that is The reason for For um board member anoni's abstention. So that that's the one he can vote on resolution number two He will abstain I vote for approval of resolution number one I'll second motion by board member dowd seconded by Board member watts to approve the first resolution under 7.3 all in favor say aye. Hi any opposed Passes unanimously And now the second resolution I'll move the second resolution Motion by board member watts Seconded by board member banister to approve item the second resolution in item 7.3 All in favor say aye. Aye any opposed and we have one abstention abstain Thank you deputy directors anino you and the budget subcommittee did a yeoman's job as always. It's uh as the chair it's certainly Very helpful for the full board and for myself to know that We have three great minds working with the staff on on the budget subcommittee. So thanks to the three of you Thank you. Thank you Any public comments on non-agenda matters? See no one rise No referrals no written communication subcommittee reports I'll report that the contract review subcommittee met on tuesday this week To provide direction on the scope of a construction contract This contract is for the repair of the slopes of several of our reclamation ponds And is scheduled to go out to bid this week However, a few weeks ago an additional failure of one of the pond levies was discovered And this failure was not part of the original project design and it will take some time to have geotechnical engineers design a repair To avoid delay in bidding the project and risk missing this construction season the contract review subcommittee unanimously approved Including a contract allowance for the work to repair the additional levy failure in the contract The contract allowance will be used to pay the contractor at a force account level for the work required to complete the repair The contract award will be before the full board for consideration at a future meeting currently scheduled tentatively for may 16th Any other subcommittee reports? Any board member reports We already did our directors report unless uh deput director walton has anything to add I will add one thing um as a result of uh miss cameron chivoni's performance today I think we should consider a junior deputy program to be started in the water department Excellent idea. I like it Anything further if not we are adjourned. Thank you all and happy Easter