 Good morning. I don't think we quite have a quorum yet of the sub tack. So we'll give it a few more minutes. Morning, Jennifer. Mary Grace. As soon as we get. Hopefully at least one more, one more person will call the meeting to order. And get this going. That's good. Okay. Good morning. Good morning. Good morning. Good morning, Ryan. Hey, how's everyone doing? So, um, we, we now have a quorum. Uh, do you want, uh, what's the pleasure of the sub tack? Do you want to wait a minute or two for anyone else? Or do we want to go ahead and get going? We are ready on a Santa Rosa side. If we'd like to get going. What do you feel is most appropriate? Do you have an opinion, Mary Grace? I'd say let's get going because people will catch up with us. Okay. Okay. Um, then I will go ahead and. All the meeting to order it's 802. Um, can we have a roll call please? Yes. City of Santa Rosa. Uh, Jennifer Burke, Santa Rosa water here. City of Cataughty. City. Park. Uh, Mary Grace. Park here. City of Sebastopol. Right Crawford here in Sonoma water. Uh, three members present to absent. All right. Thank you very much. Um, so just want to remind everyone, um, to mute your phones and microphones when you're not speaking. Um, and we will go ahead and go to item number two. Um, item number two as a resolution, uh, finding a proclaimed state of emergency and that meeting in person would present imminent risks to the health or safety of attendees so that we can, um, continue to comply with, uh, recent legislation, AB 361, as well as the governor's state of emergency because we are still in a state of emergency and social distancing is still recommended. Um, we are bringing forward this resolution so we can continue to move forward. Um, I think we need to move forward. Um, Are there any questions or comments by the sub tack on this item? All right. Seeing none. We'll go ahead and open this up for public comment. We are taking public comment on item 2.1. If you wish to make a comment by a zoom, please raise your hand. If you're on the phone dial star nine to raise your hand. We do not. Okay. So, um, is there a motion someone would like to make for this item? So moved. Mary Grace. Second. You're muted, Ryan. I'll give you a second. All right. Great. Thank you. Welcome. Welcome, Mike. Uh, so, uh, Um, Uh, Moved by, um, Mary grace with run a park seconded by Ryan with. So basketball. Um, secretary. Can we do a roll call vote, please? City of Santa Rosa. Yes. City of Katari. Yes. City of runner park. Mary Grace. Yes. City of Sebastopol. Right. Crawford here. And voting yes on the resolution. Okay. So the resolution is to extend continue to meet in, in remotely. Is that a yes. Mike. Yes. Okay. Yes. All right. So that passes unanimously. Thank you all. Um, We will now move on to item three, which is approval of the minutes. Are there any questions or comments on the minutes? All right. Seeing none. We'll now take public comment on the minutes. If you wish to make a comment in your own zoom, please raise your hand. If you're on the phone dial star nine. And secretary. Do we have any public comments on this item? We have no public comments. Okay. So we will consider those minutes. Uh, accepted. And approved. Um, item number four is public comment. Uh, so we are now taking public comment on non agenda items. If you wish to make a comment, please raise your hand. If you're on the phone dial star nine to raise your hand. And secretary. If I did, we have any public comments. We do not. Okay. Great. Thank you very much. Um, all right. We'll now move on to item five. Uh, Which is a presentation on the fiscal year, 2022, 23 regional operations and maintenance. Capital improvement and debt service budget and cost allocations. And Kimberly Zanino, our deputy director of administration will be presenting. Kimberly, we're seeing your presenter screen. Oh, you are. Okay. Let me switch them. Hang on. Got the right one now. Yes. That is great. It's always a challenge. It seems. On these meetings. All right. Good morning, everyone. Uh, nice to see you. Once again, hopefully someday it will be back in person, but. For now, still the virtual. All right. So today we're going to talk about, uh, the fiscal year 2022, 23 budget. Um, we're going to also give you a couple of updates, financial updates for you. We'll go over the expenditures, um, the revenues, the allocations, and then the budget schedule for the city of Santa Rosa. Uh, so first of all, we wanted to, um, give you a couple of financial updates. Uh, the first is that our city council has directed staff to explore solutions for Santa Rosa's unfunded pension liability. And they have selected the development of a trust. So the initial goal is to fund the trust with at least the single highest payment per our payment pension schedule. Uh, and Santa Rosa waters responsibility. And this is $7.5 million. So Santa Rosa water is going to fund, as you can see from the slide, uh, the first target fully for our water and our wastewater funds, but we will be holding off on the regional side so that we can come up with a strategy for funding that portion. Uh, and I'll let you know that one of the strategies is to, uh, redirect the amount of debt service payments that we are currently making on a pension obligation bond. To the trust when those payments end, um, which would not increase budgets. And then we'll be looking for other opportunities as well. And then we'll be looking for other opportunities as well. The advantage to this trust, uh, and this approach is that we remove future burden from our rate payers of continuously increasing liabilities. And it allows us to establish a clear goal that is fiscally responsible. This will allow the city to control the funds, which have the ability to earn at a higher rate. Um, there are some risks associated with it. Um, future spikes would be, uh, obviously a risk in the unfunded liability regardless of the situation. Um, but it also allows us, uh, to weather those spikes a little bit by, um, being able to handle those spikes in the future, or in the future increases or the future spikes that we might get. So we'll be talking to you about this again. Um, as we develop a strategy for the regional fund, but this is the direction that we will be moving forward with, uh, starting this year, actually. Uh, next, I also wanted to just give you an update. Um, as we talked about, uh, last time, we talked about completing an agreement with our consultant to develop Santa Rosa's long range financial plan and model. And we are going to, um, have him extract the regional financials from the wastewater model to provide a long range look at the regional fund as a standalone for the partners. So you'll be getting that, that, that long range look that you've been asking for. All right. So now we'll get into, uh, the actual budgets. So as we discussed at the last meeting, we are seeing several line items in the budget increasing. They're not controllable by Santa Rosa water. Um, I'm showing you those line items here. They're all circled in blue. Um, the controllable increases, uh, once again, are the ONM projects which are necessary to reduce the number of emergencies that we've been seeing at the plant, as well as professional service to address some regulatory requirements that we deferred last year. Uh, just showing you the distribution of the CIP cash funding this year. Uh, here's a picture of our projected miscellaneous revenues. Uh, once again, we are expecting miscellaneous revenues to increase, which, uh, helps all of us with the O and M side of the expenditures. Uh, we are seeing a significant increase in our high strength tipping program. Uh, and we expect to see that grow. And we're actually going to try and, um, do a little more advertising and, and get even a little bit more participation in that program. Um, this slide is the slide that just shows you all of the O and M budget, CIP budget, and then the increase in the operating reserves. Um, which is required because we have to keep a policy level of 15% in those operating reserves and then minus the debt service for the total distribution minus debt service on this slide, but that'll be on the, on the future slide. Uh, giving you again just a visual look at the entire budget for the regional funds. Um, we did, um, as I think Nick noted in the last one, we've done a little work to tease out salaries and benefits. So those won't always, um, meet up with the line item by line item. Uh, in our financial system, salaries and benefits for our administration fund all go into an overhead key. And so you don't see them. And so we've extracted those out so that you can see better, uh, the total number of salaries and benefits that are being paid for in the regional fund. Uh, this slide also shows you those miscellaneous revenues being removed and also the income to, uh, the O and M reserve to reach that 15% level by policy. And then here's our total allocation, uh, that we are proposing for this year. I did include the amounts that bring those partners who reached out to me, uh, down to the percentages that they requested. Uh, so you can see what those applied fund balances will be. Um, I did not hear back from, um, South Park sanitation, Mike. So if there is a desire to apply some fund balance, I can still do that, uh, before I informed finance, but otherwise this is where it will sit. Yeah. And we would not want to apply. Perfect. So then just our budget schedule so that you know, um, I will be at the BPU on the 21st, uh, for a recommendation. Uh, and then we'll be at the city council. Um, on the, oh, sorry. That's the seventh, the 21st at BPU, then city council on the 26th. Uh, and then our study sessions for our, um, Citywide budget or may 10th and 11th with the council adoption being on June 21st. And with that, I'm happy to answer any questions that you might have today. And then we'll be asking or requesting a recommendation. All right. Thank you, Kimberly. Are there any, uh, questions from the sub-tag members or comments from the sub-tag members? No. For me. Okay. Thank you for, thank you for getting us the long range. Look, that's, that's going to be really helpful to all of us. All right. Well, uh, thank you, uh, Kimberly and your team for all your work on the budget. And thank you to the sub-tag members for giving your inputs. Um, uh, and seeing that there are no questions or comments from sub-tag, then we will open it up for public comment. So we are now taking public comments on item 5.1. If you were on zoom, please raise your hand. If you're on the phone dial star nine. To raise your hand. And secretary, do we have any public comments on this item? We have no public comments. Okay. So we are asking the sub-tag for a recommendation, um, on this budget. Um, Is someone willing to make a motion on that? Yeah, I move we approve, approve a recommendation for the fiscal year of 22, 23, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, 22, Grace Cawson, yes. City of Sebastopol. Ryan Crawford, yes. And Sonoma Water. Mike Thompson, yes. That carries unanimously. Okay, thank you all so much. And as Kimberly mentioned, we will be going in front of the city council for a preliminary recommendation and we will be on April 26th and we'll be notifying you all here are contributions right after that that should be what we're putting forward at today's meeting. Thank you all and appreciate the time and have a great rest of your day. The meeting is adjourned. Okay, thank you. Thank you. Thank you. Hey, Ryan, is there a chance that if you saw the email we can, I'd love to chat with you. I just saw that, yeah, let's do that. You want me to send you a team after this or just stay on this call here? Well, I think we have to, this is being recorded so we probably, so I'll send you a teams invite right now and we can do that. Sounds good, no problem at all. Okay, thanks. Bye everybody.