Agenda - Tuesday, April 14, 2020 - Santa Rosa Regional ...

AGENDA REGULAR MEETING

OF THE BOARD OF DIRECTORS OF THE SANTA ROSA REGIONAL RESOURCES AUTHORITY

Board Room Rancho California Water District

42135 Winchester Road Temecula, California

Tuesday, April 14, 2020 9:00 AM

During the current State of Emergency, pursuant to the provisions of California Executive Order N-29-20, and in the interest of public health and safety, the meeting of the Board of Directors will be conducted via video conference. Members of the public may view this meeting on the Santa Rosa Regional Resources Authority Administrator’s YouTube channel at www.youtube.com/user/TheRanchoCAWater. The live stream will be available just prior to the start of the meeting.

Submission of Public Comments: For those wishing to make public comments, please submit your comments in writing before the start of the meeting by visiting the following link: https://srrra-jpa.org/comments. Please Note: Only comments submitted using the public comments form will be read into the record.

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

ADDITIONS TO AGENDA

Items may be added to the Agenda in accordance with Section 54954.2(b)(2) of the Government Code (Brown Act), upon a determination by a two-thirds vote of the members of the legislative body present at the meeting, or, if less than two-thirds of the members are present, a unanimous vote of those members present, that there is a need to take immediate action and that the need for action came to the attention of the Santa Rosa Regional Resources Authority Board after the Agenda was posted.

http://www.youtube.com/user/TheRanchoCAWater

https://srrra-jpa.org/comments

Santa Rosa Regional Resources Authority Meeting Agenda April 14, 2020 Page 2

APPROVAL OF AGENDA

PUBLIC COMMENT

Any person may address the Board at this time upon any subject not identified on this Agenda but within the jurisdiction of the District. Please note that for items not listed on the agenda, the Brown Act imposes limitations on what the Board may do at this time. The Board may not take action on the item at this meeting. As to matters on the Agenda, persons will be given an opportunity to address the Board when the matter is considered. If you wish to speak during public comment, please fill out a "Speaker Request Form" and give it to the Board Secretary. When the Board President calls your name, please immediately step to the podium and begin by giving your name and address for the record. Each speaker will be given three (3) minutes to address the Board.

1. Consent Calendar

Consent Calendar items are expected to be routine and non-controversial, to be acted upon by the Board at one time without discussion. If any Board member, staff member, or interested person requests that an item be removed from the Consent Calendar, it shall be removed so that it may be acted upon separately.

A. Consider Approval of Minutes of the Board of Directors' Regular Meeting of March 10, 2020

B. Ratification of Register of Audited Demands for the Period January 24 through February 25, 2020

C. Consider Approval of Treasurer's Report and Certification of Cash Sufficiency -December 2019

D. Review of Outside Contracts and All Open Capital Jobs Reports

E. Review and Approval of Operations Report - February 2020

2. Update on Coronavirus (COVID-19) Impacts

3. Review and Consider 5-Year Capital Improvement Plan and Proposed Fiscal Year 2020-2021 Capital Projects for Inclusion in the Fiscal Year 2020-2021 Non-Operating Budget

4. Consider Approval of the Fiscal Year 2020-2021 Operating, Non-Operating, and Capital Projects Budgets; and Adoption of the Appropriate Resolution

5. Update on Capital Projects

6. Consider Approval of Financial Statements - December 2019

7. General Counsel's Report

8. Board of Director's Comments

9. Administrator's Comments, Suggestions, and Possible Future Agenda Items

Santa Rosa Regional Resources Authority Meeting Agenda April 14, 2020 Page 3

10. Adjournment

Upon request, this agenda will be made available in appropriate alternative formats topersons with disabilities, as required by Section 202 of the Americans with Disabilities Act of1990. Any person with a disability who requires a modification or accommodation in order toparticipate in a meeting should direct such request to the Secretary at (951) 296-6900 at least48 hours before the meeting, if possible.

Any writings or documents provided to a majority of the members of the Board of Directors regarding any item on this agenda will be made available for public inspection at the Authority’s office located at 42135 Winchester Road, Temecula, California, during normal business hours.

Future Board Meetings:

September 8, 2020 (Tentative)October 13, 2020 (Anticipated)November 10, 2020 (Tentative)

May 12, 2020 (Tentative) June 9, 2020 (Tentative) July 14, 2020 (Anticipated) August 11, 2020 (Tentative) December 8, 2020 (Tentative)

SANTA ROSA REGIONAL RESOURCES AUTHORITY

ACTION ITEM BOARD OF DIRECTORS April 14, 2020 Page 1 of 1

ITEM 1.A: CONSIDER APPROVAL OF MINUTES OF THE BOARD OF DIRECTORS' REGULAR MEETING OF

MARCH 10, 2020

RESPONSIBLE/LEAD STAFF MEMBER(S):

Administrator/Secretary-Treasurer, Rick Aragon

RECOMMENDATION:

The Executive Advisory Committee recommends the Board of Directors (Board) approve

the minutes from their regular meeting of March 10, 2020, as presented.

DISCUSSION:

The aforementioned minutes are attached for the Board’s review and approval.

ALTERNATIVES:

Take no action

FISCAL ANALYSIS:

Not applicable

ENVIRONMENTAL REQUIREMENTS:

Not applicable

EXHIBITS/ATTACHMENTS:

A. Draft Minutes

1.A

Draft

MINUTES REGULAR MEETING OF THE

BOARD OF DIRECTORS OF THE SANTA ROSA REGIONAL RESOURCES AUTHORITY

Tuesday, March 10, 2020

9:00 AM

CALL TO ORDER

DIRECTORS PRESENT:

John Rossi Chair Brenda Dennstedt Vice-Chair Andy Morris Director Danny Martin Alternate Director Al Lopez Alternate Director (Absent) Phil Williams Alternate Director (Absent)

STAFF PRESENT:

Executive Advisory Committee (EAC) Members Jeff Armstrong and Greg Thomas, EAC Alternate Members Eva Plajzer, Margie Armstrong, and Rod LeMond, General Counsel Jim Ciampa, Elsinore Valley Municipal Water District Assistant General Manager Krishnamurthy Ganesh, Rancho California Water District (Rancho Water/District) Staff: Water Reclamation Manager Mark Kaveney, Engineering Manager-CIP & Development Jake Wiley, Water Resources Manager Jeff Kirshberg, Accounting Manager Kathy Naylor, Budget/Debt Administrator Bill Moses, Water Systems Analyst Tony Fowler, Assistant Engineer Wendie Heie, and Recording Secretary/Senior Administrative Assistant Ana Belland.

PLEDGE OF ALLEGIANCE

Vice-Chair Dennstedt led the Pledge of Allegiance to the Flag.

ADDITIONS TO AGENDA

There were no additions to the Agenda.

APPROVAL OF AGENDA

Prior to approving the Agenda, Mr. Armstrong who was filling in for the Santa Rosa Regional Resources Authority (SRRRA/Authority) Administrator, requested that, due to the rain today, the Board of Directors (Board) consider canceling Item 8 “Tour of the Santa Rosa Water Reclamation Facility, 26266 Washington Avenue, Murrieta, California 92562 and Related Discussion Concerning the Rehabilitation Project,” and postponing it to take place following their April 14, 2020 regular meeting.

1.A.a

Draft

Santa Rosa Regional Resources Authority Page 2 of 6 March 10, 2020

Additionally, Mr. Armstrong requested that Item 4 “Consider Approval of Financial Statements - November 2019,” be discussed following Agenda Item 1. A motion to approve the Agenda as revised was made by Director Dennstedt, seconded by Director Morris, and it carried unanimously.

PUBLIC COMMENT

There was no public comment.

CONSENT CALENDAR

Consent Calendar items are expected to be routine and non-controversial, to be acted upon by the Board at one time without discussion. If any Board member, staff member, or interested person requests that an item be removed from the Consent Calendar, it shall be removed so that it may be acted upon separately.

A. Consider Approval of Minutes of the Board of Directors' Regular Meeting of February 11, 2020

B. Ratification of Register of Audited Demands for the Period December 22, 2019 through January 23, 2020

C. Consider Approval of Treasurer's Report and Certification of Cash Sufficiency - November 2019

D. Review of Outside Contracts and All Open Capital Jobs Reports

E. Review and Approval of Operations Report - January 2020

Director Dennstedt moved to approve Consent Calendar Items 2A-2E. The motion was seconded by Director Morris, and it carried unanimously.

Item 2. Consider Approval of Financial Statements - November 2019

Presented for the Board’s review and ratification were the SRRRA Financial Statements as of November 30, 2019. MOTION: Director Morris moved to receive, approve, and file the subject financial

statements. Director Dennstedt seconded the motion, and it carried unanimously.

Item 3. Review and Discussion of Fiscal Year 2020-2021 Operating Budget

Addressing the Board, Rancho Water’s Budget/Debt Administrator Bill Moses provided a brief review of the following components in relation to the draft Fiscal Year (FY) 2020-2021 Operating Budget (Budget), with the intent of having the Board review and approve said Budget at their regular meeting of April 14, 2020:

Budget Schedule

1.A.a

Draft


Operating Budget Summary

Major Operating Budget Changes By way of a PowerPoint presentation, Mr. Moses discussed highlights of the FY 2020-2021 Budget as follows:

Permanent Flow Monitoring - Calendar Year (CY) 2019

Stable Rates / 1.08 Percent Increase from Prior Year Budget

Vehicle-Use Charge Expounding on the member-agency allocations, Mr. Moses explained that the initial budget allocation is based on CY 2019 permanent flow monitoring data, with the intent of having the FY 2020-2021 permanent flow data available for a true-up of the initial Budget allocation by July 2021.

Next, Mr. Moses illustrated several slides containing charts and tables to discuss the FY 2020-2021 Operating Budget change from prior year budget, as well as a year-to-year highlight comparison on the cost category of the materials, outside services, and energy costs. Continuing, Mr. Moses briefly discussed Rancho Water’s fee change from the prior year, citing a few reductions due to a mitigated corrective maintenance with the rehabilitation work underway; labor costs due to two vacant positions hired at lower salary levels; and continued stabilization and increased efficiencies of the SRRRA administrative functions. Speaking to the new vehicle-use charge, Mr. Moses displayed a table describing the two new trucks that will be used at the Santa Rosa Water Reclamation Facility (SRWRF) for SRRRA-related activities and the summary of the shared-costs breakdown, citing that the new trucks will be assigned to the wastewater department. Concluding the presentation, Mr. Moses illustrated a table containing the FY 2020-2021 Operating Budget member-agency cost-share data. Brief discussion ensued regarding the permanent increase in costs for the change in process utilizing bleach for the disinfection project, which is a safer process than the use of gas chlorine. There being no further discussion on the matter, Chair Rossi entertained a motion by the Board. MOTION: Director Dennstedt moved the FY 2020-2021 Operating Budget to the April 14,

2020 Board Meeting for consideration of final adoption along with the Non-Operating Budget. Director Morris seconded the motion, and it carried unanimously.

1.A.a

Draft


Item 4. Consider Approval to Execute a Letter of Intent with SunPower Corporation for the Installation of an Energy Storage System through the Equity Self-Generation Incentive Program

Introducing the Agenda item, EAC Alternate Member Eva Plajzer presented information regarding a request for the Board to authorize the Administrator to execute a Letter of Intent (LOI) with SunPower Corporation (SunPower®) for the installation of an energy storage system through the Equity Self-Generation Incentive Program (Equity SCIP) from the California Public Utilities Commission (CPUC). By way of a PowerPoint presentation, Ms. Plajzer discussed the following topics:

Current Facility

CPUC Program

SunPower® Proposal

Recommendation

Expounding, Ms. Plajzer provided an overview of the current facility, citing the following energy profile aspects of the SRWRF:

Solar Production in Fiscal Year End 2019 - 2,155,350 kilowatt hours (kWhs)

110 percent of expected solar performance

Two Southern California Edison Meters Continuing, Ms. Plajzer discussed highlights of the CPUC Program as follows:

CPUC Equity SGIP o Recently established

o Allows for an 850 per kWh incentive

o $63-million program o Applications due April 1

o Low-income or disadvantaged communities only

Next, Ms. Plajzer described the SunPower® proposal by explaining the following elements:

SunPower provided an unsolicited proposal

SunPower offered to: o Perform battery sizing analysis for application purposes

o Prepare application at $0 cost to the SRRRA o Cover application and reservation deposit

o Cover all costs associated with engineering, installation, purchase, and

maintenance o Duration of lease contract will match PPA term (9 years left) at no cost to the

SRRRA

1.A.a

Draft


o SRRRA to own all energy savings

With regard to the LOI, Ms. Plajzer summarized the following:

SunPower® and SRRRA to execute Letter of Intent o Allows SunPower® to apply for incentive program on SRRRA’s behalf o Should project not be selected by CPUC - all funds will be refunded

o Should project be selected and SRRRA withdraws without negotiating a definitive

contract in good faith - SRRRA to refund SunPower® full reservation deposit (5 percent of project cost, currently estimated at $125,000)

o Should project be selected and parties, after good-faith negotiations, cannot come to a mutual agreement - SRRRA to refund SunPower® 50 percent of reservation deposit

Should the SRRRA project(s) be selected, Ms. Plajzer briefly discussed the next steps as follows:

Execute the following agreements: o Battery Service/Power Purchase and Demand Reduction Service/Engineering,

Procurement, and Construction Agreement o Savings Guarantee Agreement o Retain Sage Renewables as Owner’s Agent

Concluding the presentation, Ms. Plajzer illustrated a sample draft proforma, depicting an annual savings for the SRRRA of $180,000 and solicited the Board to authorize the Administrator to execute said LOI with SunPower® for the installation of an energy storage system through the Equity SGIP from the CPUC, as presented. General discussion ensued regarding the Equity SGIP program eligibility, other prospective participants, SRRRA solar facilities situated in a disadvantaged community, the deadline for application submission, and the estimated risk being small compared to the SRRRA applying on their own to participate in the Equity SGIP. There being no further comments, Chair Rossi entertained a motion by the Board. MOTION: Director Morris moved for the Board to authorize the Administrator to execute a

Letter of Intent with SunPower® for the installation of an energy storage system through the Equity Self-Generation Incentive Program from the California Public Utilities Commission, as presented. Director Dennstedt seconded the motion, and it carried unanimously.

Item 5. Administrator's Comments, Suggestions, and Possible Future Agenda Items

As a reminder, EAC Alternate Member Eva Plajzer advised that today’s canceled tour has been postponed to April 14, 2020, following the Board meeting.

1.A.a

Draft


Item 6. General Counsel's Report

As follow up to discussion from the last Board meeting regarding public safety power shutoffs (PSPS), General Counsel Jim Ciampa reported on the following recent legislation involving PSPS: Assembly Bill (AB) 1936 (Rodriguez) - Price gouging: public safety power shutoffs; AB 2178 (Levine) - De-energization events to constitute a state of emergency and local emergency; AB 2182 (Rubio) - Emergency backup generators: water and wastewater facilities: exemption; Senate Bill (SB) 862 (Dodd) - Planned power outage: public safety; and SB 1099 (Dodd) - Emergency backup generators: critical facilities: exemption. Mr. Ciampa will continue to track these bills and keep the Board apprised on any updates affecting the wastewater industry.

Item 7. Board of Director's Comments

There were no comments by the Board.

Item 8. Tour of the Santa Rosa Water Reclamation Facility, 26266 Washington Avenue, Murrieta, California 92562 and Related Discussion Concerning the Rehabilitation Project

This item was postponed due to the rain.

Item 9. Adjournment

There being no further business to come before the Board, the meeting adjourned at 9:40 AM.

1.A.a



ITEM 1.B: RATIFICATION OF REGISTER OF AUDITED DEMANDS FOR THE PERIOD JANUARY 24 THROUGH

FEBRUARY 25, 2020



RECOMMENDATION:

The Executive Advisory Committee recommends the Board of Directors’ (Board)

ratification of the Register of Audited Demands, as presented.

DISCUSSION:

The Register of Audited Demands for the period January 24 through February 26, 2020,

with a net distribution totaling $2,197,054.30 is attached for the Board’s review and

ratification.

ALTERNATIVES:

Take no action

FISCAL ANALYSIS:

Not applicable


Not applicable


A. Warrant List - January 24 through February 26, 2020

1.B

Cash Disbursements for the Period January 24, 2020 to February 26, 2020

CHECK NUMBER VENDOR NAME DESCRIPTION CHK DATE AMOUNT STATUS

235 3733 FREEDOM AUTOMATION, INC. SRWRF REHAB PROJECT 02/11/2020 31,200.00$ ISSUED

235 Total 31,200.00$

236 1315 INFRASTRUCTURE ENG CORP RDII ANALYSIS-TEMPORARY FLOW MONITORING 02/11/2020 2,150.00$ ISSUED

236 1315 INFRASTRUCTURE ENG CORP 18/19 PERM SEWER FLOW MONITORING 02/11/2020 3,835.00$ ISSUED

236 Total 5,985.00$

237 1895 KRIEGER & STEWART INC. DISINFECTION CONVERSION PROJECT 02/11/2020 15,838.20$ ISSUED

237 Total 15,838.20$

238 1906 LEIGHTON CONSULTING INC. DISINFECTION CONVERSION PROJECT 02/11/2020 166.30$ ISSUED

238 Total 166.30$

239 3749 SCHULER CONSTRUCTORS, INC. DISINFECTION CONVERSION PROJECT 02/11/2020 42,550.50$ ISSUED

239 Total 42,550.50$

240 2301 MICHAEL R. WELCH PH.D. P.E. PRETREATMENT PROGRAM 02/11/2020 16,830.00$ ISSUED

240 Total 16,830.00$

241 2869 GSE CONSTRUCTION CO INC SRWRF REHAB PROJECT 02/26/2020 1,574,738.18$ ISSUED

241 Total 1,574,738.18$

242 3495 RANCHO CALIFORNIA WATER DIST SRF LOAN PROJ ADMIN-MAY 2019 02/26/2020 19,102.41$ ISSUED

242 3495 RANCHO CALIFORNIA WATER DIST CAPITAL PROJECT ADMIN-MAY 2019 02/26/2020 17,771.64$ ISSUED

242 3495 RANCHO CALIFORNIA WATER DIST SRF LOAN PROJ ADMIN-MAY 2019 02/26/2020 534.61$ ISSUED

242 3495 RANCHO CALIFORNIA WATER DIST SRF LOAN PROJ ADMIN-JAN 2020 02/26/2020 52,044.66$ ISSUED

242 3495 RANCHO CALIFORNIA WATER DIST JPA-OPER EXP - JAN 2020 02/26/2020 420,292.80$ ISSUED

242 Total 509,746.12$

Grand Total 2,197,054.30$

Page 1 of 1

1.B.a



ITEM 1.C: CONSIDER APPROVAL OF TREASURER'S REPORT AND CERTIFICATION OF CASH SUFFICIENCY -

DECEMBER 2019



RECOMMENDATION:

The Executive Advisory Committee recommends the Board of Directors’ (Board)

acceptance and approval of the Treasurer’s Report, as presented.

DISCUSSION:

The aforementioned Treasurer’s Report is attached for the Board’s review and approval.

ALTERNATIVES:

Take no action

FISCAL ANALYSIS:

Not applicable


Not applicable


A. Cash Reserve Report B. Certification of Cash Sufficiency C. Project Status Report

1.C

Operating Reserve TOTAL % FUNDED

Operating Reserve Target (1) 410,459$

Operating Reserve Balance 2,519,714

Over/(Under) Reserve Target 2,109,255 614%

Debt Service Reserve

Debt Service Reserve Target (2) 2,250,000

Debt Service Reserve Balance 2,284,711

Over/(Under) Reserve Target 34,711 102%

Capital Projects Reserve

Working Capital Reserve - EVMWD (3) 2,506,425

Working Capital Reserve - RCWD (3) 2,868,096

Working Capital Reserve - WMWD (3) 1,161,804

Rate Stabilization Reserve (4) -

Total Capital Projects Reserves 6,536,325 N/A

Trust Reserves

Trust Reserves - Construction 1,195,440

Trust Reserves - Program 828,921

Total Trust Reserves 2,024,360 N/A

TOTAL OPERATING &

NON-OPERATING FUNDS 13,365,110$

Balance Sheet Cash & Investments

Current 2,519,714

Restricted 10,845,397

TOTAL CASH & INVESTMENTS 13,365,110$

Notes:

(1) Policy states Operating Reserve to be equivalent to a minimum

of one month of the total operating budget.

(2) Policy states Debt Service Reserve to be equivalent to the

maximum debt service payment amount of any single member agency.

(3) Policy states Working Capital Reserve to be equivalent to an amount estimated annually

based on projected funding needs for CIP.

(4) Policy states Rate Stabilization Reserve to be equivalent to an amount to achieve minimum

debt service coverage, or additional amounts determined by the SRRRA Board of Directors.

SANTA ROSA REGIONAL RESOURCES AUTHORITYCASH RESERVE REPORTAS OF DECEMBER 31, 2019

1.C.a

Current Cash BalanceWells Fargo General Checking 2,743,425$ L.A.I.F. 8,582,506

TOTAL 11,325,931

Source of FundsMember Contributions Operations 2,340,664Member Contributions Capital Projects 465,379 Member Contributions Debt Service 2,751,371 Financing Sources 9,823,465

TOTAL 15,380,878

Use of FundsOperations 2,462,754Capital Projects 10,288,844Debt Service 2,751,371

TOTAL 15,502,968

Net Source/(Use) of Funds (122,090)

Projected Cash Balance @ June 30, 2020 $11,203,841

The above Certification of Cash Sufficiency is being submitted in accordance with Government Code Section

53646 to document the Authority's ability to meet cash flows for the next six-month period.

Richard R. Aragon

Administrator/Secretary-Treasurer

SANTA ROSA REGIONAL RESOURCES AUTHORITYCERTIFICATION OF CASH SUFFICIENCY

FOR THE NEXT SIX MONTHSDecember 31, 2019

1.C.b

PROJECT

BUDGET

AMOUNT

SPENT

DURING

MONTH

TOTAL

SPENT TO

DATE

REMAINING

PROJECT

BUDGET

SRWRF Phase PLC Migration (S0001) 800,000$ 575$ 423,116$ 376,884$

SRWRF Disinfection Conversion (S0006) 1,075,000 83,910 418,816 656,184

TOTAL 1,875,000$ 84,485$ 841,933$ 1,033,067$

Santa Rosa Regional Resources Authority

Project Status Report 2017A Construction Funds

December 31, 2019

1.C.c



ITEM 1.D: REVIEW OF OUTSIDE CONTRACTS AND ALL OPEN CAPITAL JOBS REPORTS



RECOMMENDATION:

The Executive Advisory Committee recommends the Board of Directors (Board) receive

and file the subject reports, as presented.

DISCUSSION:

Attached for the Board’s review and information are the Outside Contracts Summary

Report and the All Open Capital Jobs Report.

ALTERNATIVES:

Take no action

FISCAL ANALYSIS:

Not applicable


Not applicable


A. Outside Contracts Summary Report B. All Open Capital Jobs Report

1.D

SRRRA - OUTSIDE CONTRACTS SUMMARY REPORT

Report is based on Lawson data refreshed on 1/23/2020

CONSULTANT NAME JOB

NOTICE TO

PROCEED

DATE PROJECT DESCRIPTION

TOTAL

CONTRACT

AMOUNTS COST TO DATE

CONTRACT

BALANCE

LAST / CURR

TRANSACTION

DATE

DAYS

SINCE LAST

TRANS

BALANCE

REMAINING

ARCADIS U.S. INC. S0013L 03/01/2018 SRWRF REHABILITATION CONSTRUCT 2,377,370.00 877,033.68 1,500,336.32 12/31/2019 23 63%BLACK & VEATCH S0001N 01/18/2018 SRWRF PLC/RIO MIGRATION 187,957.00 118,764.05 69,192.95 01/31/2020 0 37%BLACK & VEATCH - CONST SUPPT S0013M 10/24/2018 SRWRF REHABILITATION CONSTRUCT 1,249,880.00 655,518.04 594,361.96 01/31/2020 0 48%BLAIS & ASSOCIATES S0012 01/02/2018 SRF LOAN MANAGEMENT 58,500.00 34,493.91 24,006.09 01/31/2020 0 41%FREEDOM AUTOMATION S0013S 05/10/2019 SRWRF-HMI UPGRADE,PLC PROGRAM 245,878.00 104,566.01 141,311.99 10/31/2019 84 57%GSE CONSTRUCTION S0013T 10/08/2018 SRWRF REHABILITATION CONSTRUCT 27,681,500.00 11,366,170.31 16,315,329.69 12/31/2019 23 59%INFRASTRUCTURE - RDII S0005M 07/31/2019 SRRRA TEMP FLOW MONITOR-RDII 39,020.00 7,220.00 31,800.00 01/31/2020 0 81%INFRASTRUCTURE ENG CORP S0005N 12/06/2017 SRRRA TEMP FLOW MONITOR 73,987.00 62,851.00 11,136.00 01/31/2020 0 15%INFRASTRUCTURE ENG CORP S0016L 09/17/2018 SRRRA PERMANENT FLOW MONITORING 67,950.00 50,350.00 17,600.00 12/31/2019 23 26%INSITUFORM TECH S0195T 06/18/2019 SEWER COLLECTION SYS REPAIRS 189,000.00 182,500.00 6,500.00 12/31/2019 23 3%KRIEGER & STEWART-ENG SVC S0006S 09/12/2019 SRWRF DISINFECTION CONVERSION 70,200.00 26,874.85 43,325.15 01/31/2020 0 62%LSA ASSOCIATES S0013U 04/30/2019 NESTING BIRD SURVEY 4,100.00 2,754.17 1,345.83 11/30/2019 54 33%MICHAEL D. WELCH S0020L 09/25/2018 PRETREATMENT PROG LOCAL LIMITS 37,060.00 - 37,060.00 08/31/2019 145 100%SCHULER CONSTRUCTORS S0006T 08/25/2017 SRWRF DISINFECTION CONVERSION 578,299.00 206,590.00 371,709.00 01/31/2020 0 64%

TOTAL 32,860,701.00$ 13,695,686.02$ 19,165,014.98$

1.D.a

SRRRA - ALL OPEN CAPITAL JOBS

Report based on LAWSON data covering life-to-date budget and actual amounts through 12/31/19.

Activity Description Div Account

Date

Opened

Estimated

Completion

Total Project

Budget

Actual

Amount Variance %Spent

% Phase

Complete

S0006 SRWRF DISINFECTION CONVERSION 6 11252 8/25/17 06/30/20 2,020,000.00 418,816.10 1,601,183.90 21% 38%

S0023 HEADWORKS GENERATOR ENCLOSURE 6 11244 3/15/19 10/31/19 100,000.00 82,547.18 17,452.82 83% 1%

S0030 SRRRA SEWER MANHOLE REPAIRS 6 11244 9/13/19 06/30/20 30,000.00 9,950.00 20,050.00 33% 33%

S0159 LIFT STATION PLC REPLACEMENTS 6 11244 8/25/17 12/31/19 30,000.00 22,753.67 7,246.33 76% 75%

TOTAL CONSTRUCTION 2,180,000.00$ 534,066.95$ 1,645,933.05$

S0005 SRRRA TEMP FLOW MONITOR 6 11244 8/25/17 03/31/20 165,000.00 103,342.18 61,657.82 63% 80%

S0007 SRWRF DRYING BED 5 CONVERSION 6 11244 8/25/17 03/31/20 175,000.00 2,363.10 172,636.90 1% 5%

S0008 AWT FACILITY ASSESSMENT 6 11244 8/25/17 06/30/20 125,000.00 6,330.31 118,669.69 5% 5%

S0009 SRRRA SEWER MANHOLE REPAIR 6 11244 8/25/17 10/31/19 25,000.00 16,281.39 8,718.61 65% 28%

S0010 FLOW DIVERSION STRUCTURE REHAB 6 11244 8/25/17 07/31/20 100,000.00 - 100,000.00 0% 0%

S0014 SRRRA PIPELINE JOINT REPAIR 6 11244 6/26/18 06/30/20 75,000.00 217.69 74,782.31 0% 0%

S0015 SRRRA SEWER MANHOLE REPAIR 6 11244 6/26/18 12/31/19 25,000.00 16,490.23 8,509.77 66% 40%

S0195 SEWER COLLECTION SYS REPAIRS 6 11244 8/25/17 11/30/20 500,000.00 238,985.24 261,014.76 48% 95%

TOTAL DESIGN 1,190,000.00$ 384,010.14$ 805,989.86$

S0001 SRWRF PHASE 1 PLC MIGRATION(3) 6 11252 8/25/17 06/30/20 800,000.00 423,116.41 376,883.59 53% 75%

S0002 ATS&BREAKER REPLACEMENT-CLOSED 6 11250 8/25/17 03/31/19 42,592.16 - 42,592.16 100% 100%

S0012 SRF LOAN MANAGEMENT 6 11250 1/2/18 05/31/21 58,500.00 33,312.66 25,187.34 57% 55%

S0013 SRWRF REHABILITATION CONSTRUCT 6 11250 11/14/17 05/31/21 32,247,407.84 13,196,156.87 19,051,250.97 41% 33%

S0180 REHABILITATION DESIGN 6 11250 8/25/17 12/31/20 1,300,000.00 1,185,205.49 114,794.51 91% 100%

S0187 REHABILITATION DESIGN 6 11250 8/25/17 12/31/20 2,650,000.00 1,267,543.72 1,382,456.28 48% 100%

S0189 SRF LOAN (CLOSED) 6 11250 8/25/17 05/31/21 101,500.00 98,893.70 2,606.30 97% 100%

TOTAL REHABILITATION 37,200,000.00$ 16,204,228.85$ 20,995,771.15$

S0016 SRRRA PERMANENT FLOW MONITORIN 6 11244 7/1/18 12/31/19 120,000.00 95,239.74 24,760.26 79% 76%

S0025 SRRRA FY1920 CAPITAL ACQUISITI 6 11244 6/11/19 06/30/20 14,000.00 12,382.75 1,617.25 88% 88%

S0026 HEADWORKS BAR SCREEN & COMPACT 6 11244 8/2/19 12/31/19 40,000.00 34,505.32 5,494.68 86% 86%

S0027 CHLORINE ANALYZERS 6 11244 8/2/19 10/07/19 20,000.00 18,340.12 1,659.88 92% 92%

S0028 BACKWASH BASIN SLUDGE PUMP 6 11244 8/2/19 11/30/19 8,700.00 - 8,700.00 0% 0%

TOTAL MISCELLANEOUS 202,700.00$ 160,467.93$ 42,232.07$

Grand Total 40,772,700.00$ 17,282,773.87$ 23,489,926.13$

1.D.b



ITEM 1.E: REVIEW AND APPROVAL OF OPERATIONS REPORT - FEBRUARY 2020



RECOMMENDATION:

The Executive Advisory Committee recommends the Board of Directors receive and file

the subject report, as presented.

DISCUSSION:

Presented below is the operations report for February; there were no permit violations

during this period.

Monthly Average

YTD Average

Monthly %

YTD %

SRWRF Total Flow 2.44 2.48

Rancho Flow 0.89 0.97 36% 39%

Elsinore Flow 0.81 0.80 33% 32%

Western Flow 0.75 0.71 31% 29%

1.E

SRRRA - Board of Directors April 14, 2020 Item 1.E Page 2 of 3

Monthly Average

YTD Average

Reclaimed Flow 3.03 3.03

Percolation Flow 0.000 0.004

Monthly

Total YTD

Average

Biosolids Hauling 438 410.27

1.E

SRRRA - Board of Directors April 14, 2020 Item 1.E Page 3 of 3

ALTERNATIVES:

Take no action

FISCAL ANALYSIS:

Not applicable


None


1.E


INFORMATION ITEM

BOARD OF DIRECTORS April 14, 2020 Page 1 of 1

ITEM 2: UPDATE ON CORONAVIRUS (COVID-19) IMPACTS



RECOMMENDATION:

This item is presented for the Santa Rosa Regional Resources Authority (SRRRA/

Authority) Board of Director’s (Board) information.

DISCUSSION:

This item is included on the SRRRA Board meeting agenda, as a means for staff to

provide a verbal status update on matters related to the COVID-19 pandemic, and impacts to

the Authority’s operations and capital projects.

ALTERNATIVES:

Not applicable

FISCAL ANALYSIS:

Not applicable


Not applicable


2



ITEM 3: REVIEW AND CONSIDER 5-YEAR CAPITAL IMPROVEMENT PLAN AND PROPOSED FISCAL YEAR

2020-2021 CAPITAL PROJECTS FOR INCLUSION IN THE FISCAL YEAR 2020-2021 NON-OPERATING BUDGET


Water Resources Manager, Jeff Kirshberg

RECOMMENDATION:

The Executive Advisory Committee (EAC) recommends the Santa Rosa Regional

Resources Authority (SRRRA) Board of Directors (Board) approve the proposed 5-Year Capital

Improvement Plan (CIP) and the proposed Fiscal Year (FY) 2020-2021 Capital Projects for the

total cost of $450,000 to be included for funding through the FY 2020-2021 Non-Operating

Budget, as delineated in Exhibit “A” (attached).

DISCUSSION:

Rancho California Water District (Rancho Water) staff has prepared a proposed 5-Year

CIP for FYs 2020-2021 through 2024-2025. Included within the 5-Year CIP is a discussion of

compliance with Board policies, available funding sources and funding strategy, the capital

improvement planning process, project prioritization, project recommendations, and an

environmental review.

The proposed 5-Year CIP and the proposed FY 2020-2021 Capital Projects were

previously presented via email to Technical Advisory Committee members for discussion and

review, which includes technical staff of all three member agencies. Discussions included

project drivers, proposed costs, and phasing, which culminated in the proposed 5-Year CIP and

the proposed FY 2020-2021 Capital Projects. The proposed FY 2020-2021 Capital Projects were

also submitted to the EAC.

3

SRRRA - Board of Directors April 14, 2020 Item 3 Page 2 of 2

ALTERNATIVES:

Staff has collaborated during the preparation of the proposed FY 2020-2021 Capital

Projects and has prioritized and sequenced the capital projects, while considering financial and

other resource constraints. At the Board’s discretion, strategic direction may be provided to

modify the proposed FY 2020-2021 Capital Projects and the 5-Year CIP to add, eliminate, or

defer certain projects.

FISCAL ANALYSIS:

The total estimated cost for the proposed Capital Projects for FY 2020-2021 is $450,000.

The total amount of these projects is proposed to be funded from cash contributions from

SRRRA’s member agencies and would be included in the overall cost split by applicable cost

type (Primary/Secondary, Tertiary, and Collection System). The overall cost split among the

projects—according to the year in which they are authorized—is included for reference in

Exhibit “B.” If approved, the FY 2020-2021 Non-Operating projects will be included in the FY

2020-2021 Non-Operating Budget for cash funding by the member agencies.


The 5-Year CIP and the recommended list of capital projects to be included in the FY

2020-2021 Non-Operating Budget is not a project, as defined by California Environmental

Quality Act (CEQA) guidelines, and an environmental review is not required for its approval by

the Board. Individual projects listed herein may be subject to CEQA guidelines and an

environmental review will be conducted at the appropriate time during implementation of

those projects and prior to approval of the contract for construction.


A. Draft 5-Year CIP - March 12, 2020 B. Draft 5-Year CIP Cost Allocation Schedule

3

March 12, 2020

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1

5-Year Capital Improvement Plan

Table of Contents

Page No. Overview ....................................................................................................................... 2

Introduction ................................................................................................................... 2 Purpose ................................................................................................................... 2 CIP Program Documents ......................................................................................... 4

CIP Funding Sources ...................................................................................................... 4 Non-Operating Budget ............................................................................................ 4

CIP Project Categories and Prioritization ...................................................................... 5 Classification of Improvements .............................................................................. 5 Project Prioritization ............................................................................................... 6

CIP Project Recommendations ..................................................................................... 7 CIP Environmental Review ............................................................................................ 8 CIP Planning Process ..................................................................................................... 8

Schedule .................................................................................................................. 8 Stakeholder Input ................................................................................................... 8

List of Figures Figure 1 – Santa Rosa Regional Resources Authority Service Area Appendices

A. 5-Year Capital Project List B. 5-Year Project Funding Breakdown C. FY 2020-2021 Project Information D. FY 2021-2022 Project Information

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2

Overview

Introduction

The Santa Rosa Regional Resources Authority (Authority) is a Joint Powers Authority formed by the Elsinore Valley Municipal Water District (EVMWD), Rancho California Water District (Rancho Water), and Western Municipal Water District (WMWD) on November 12, 2015 for the collection, transmission, and treatment of wastewater generated from its member agencies for portions of the City of Murrieta and the City of Temecula, both located in southwest Riverside County. The existing wastewater service area is approximately 9,621 acres, as illustrated in Figure 1.

Under agreement with the Authority, Rancho Water serves as the administrator

and operator of the Authority’s wastewater facilities, primarily the Santa Rosa Water Reclamation Facility, and its major trunk sewer facilities. Wastewater collection facilities unique to the individual member agencies are not budgeted and governed by the Authority, and such facilities and capital projects are not included in the Authority’s 5-Year Capital Improvement Plan (CIP). The inventory of the major existing Authority facilities is as follows:

• Wastewater Collection System

o Lift Stations – 1 o Gravity Sewer Pipelines – 18.4 miles o Sewer Force Main Pipelines – 0.1 miles o Manholes – 398

• Wastewater Treatment o Santa Rosa Water Reclamation Facility

• Other Facilities o Solar Photovoltaic Facilities – 1

Purpose

The Authority’s Fiscal Year (FY) 2021-2025 5-Year CIP is a projection of the

Authority’s capital funding requirements for planned capital projects in FY 2020-2021 through FY 2024-2025. In addition, the Authority’s CIP for FY 2020-2021 is recommended to be included in the approved list of capital and non-capitalized projects for the FY 2020-2021 Non-Operating Budget.

The 5-Year CIP identifies the capital funding requirements in order to provide an annual update to the Authority’s member agencies for longer term capital requirements planning, and identifies and prioritizes the capital facilities required to provide reliable and efficient service, in accordance with sound asset management planning.

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3

The 5-Year CIP is prepared in accordance with the guidelines and best practices established by the Government Finance Officer Association (GFOA). Capital projects in the 5-Year CIP are defined by the GFOA capitalization thresholds for capital assets, the Public Contract code definition of a “public project,” and the Authority’s capitalization procedures in which capital projects are projects that exceed $2,000 in cost, have long-term life spans (greater than two [2] years), and are generally nonrecurring (not maintenance work). Regular occurring maintenance activities which are preformed to keep assets in their normal operating condition in order to maintain their original useful life are expensed to the Operating Budget.

Planned corrective maintenance projects are capitalized and included in the Non-

Operating Budget (life span greater than two [2] years and exceeds $2,000 in cost) and generally consist of:

• Slurry seal coating of existing asphalt surfaces. • Recoating of existing painted surfaces.

Capitalized projects that are included in the Non-Operating Budget are capital

projects that are facility-related and generally consists of:

• Construction of a new facility or appurtenance. • Addition to, or expansion or replacement of, an existing facility or

appurtenance. • Nonrecurring rehabilitation or betterment to a facility or appurtenance

that extends the asset life of the facility or improves its functionality or efficiency.

• Acquisition of land for a public purpose. • Sewer pipeline relining or point repairs. • Sewer manhole coating and repairs. • Specific planning, engineering study, or design work related to a particular

project, as defined in the aforementioned categories.

Non-capitalized projects that are included in the Non-Operating Budget are projects or programs that define future capital projects, but are not unique to a particular asset and generally consist of:

• Master plans for wastewater facilities. • Asset management program activities. • Planning or engineering study not related to a particular capital project.

Other capitalized items that are excluded from the capital projects listed in the 5-Year CIP are capital acquisition budget items. Capital acquisition budget items are typically materials or equipment that cost greater than $2,000 and have a life span of greater than one (1) year, consisting generally of:

• Testing equipment. • Information technology purchases. • Capital acquisition of materials or equipment.

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4

CIP Program Documents

The 5-Year CIP project list is developed from information compiled from Rancho Water’s 2016 Sewer Facilities Master Plan and past facility planning initiatives. In addition, the 5-Year CIP project list is also developed from existing asset condition information, analyzed from Rancho Water’s Computerized Maintenance and Management System (and other data sources), which typically represents planned repair or rehabilitation activity.

CIP Funding Sources

Non-Operating Budget

The Authority’s Operating Budget consists of those normal ongoing operating costs incurred to operate and maintain the functions of the Authority, including wages, materials, utilities, professional and outside services, and other such operating expenses. The Operating Budget and Non-Operating budget are funded through member agency contributions determined on an annual basis through the budgeting process.

As identified in the Authority’s Non-Operating Budget, all capital facilities are funded by debt financing such as bond funds or cash via member agency contributions. The Authority relies upon its member agencies and their reserves to fund its capital financing needs and does not keep its own long term cash reserves for capital replacement needs.

The Authority also utilizes external funding opportunities, where appropriate, to partially fund capital projects. Previously, the Authority has applied for funding from the State Water Resources Control Board’s State Revolving Fund loan program.

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5

CIP Project Categories and Prioritization

Classification of Improvements

The 5-Year CIP project list is separated by fiscal year (see Appendix “A”). Detailed project information is provided for the capital projects which exceed $75,000 in cost for FY 2020-2021 and FY 2021-2022 in Appendices “C” or “D,” respectively. The projects recommended in the 5-Year CIP generally consist of the following classification of improvements:

• Regulatory (REG) – This type of project is required due to a permit requirement or

mandated regulation(s) or legislation: o Stairway Construction at the Sequencing Batch Reactor (SBR) Building

• Operational Efficiency Improvement (OEI) – This type of project maintains or

improves the efficiency of the Authority’s systems and related operations: o Drain Line Manhole Construction

• Repair and Replacement (R&R) – This type of project is to rehabilitate or replace

existing facility asset infrastructure scheduled for renewal and/or has reached its expected useful life. The repair and replacement activity may also result in improved asset functionality. Repair and replacement projects are validated based on their assessed condition, likelihood and consequence of failure, and performance:

o Sewer Manhole Repairs o Sewer Pipeline Repairs o Grit Classifier Replacement o Valve Replacement in the Plant Washwater Distribution System o Maintenance on the Motor and Gearbox for Bar Screens and Compactors o Gravity Filter Valve and Gate Replacements o Filter Backwash Basin Mechanical Equipment Replacement o Bypass Construction/Condition Assessment of the Secondary Influent

Pipeline o Slurry and Paint

• New Development (ND) – This type of project is required to provide service to

accommodate new development or to facilitate planned development, which may also provide a system operating improvement:

o None Identified

• Non-Capitalized Facility Planning and Management (FP) – This type of project activity consists of planning due to mandated regulations, asset management planning, facility master planning, or other facility management plans:

o None Identified

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6

Project Prioritization

The capital projects recommended in the 5-Year CIP have been prioritized with the following process:

1. Establish CIP Prioritization Criteria (i.e., Benefit Criteria). Once established, the Benefit Criteria can be revisited from time to time to confirm if business or strategy of the Authority warrant revision to the Benefit Criteria. Once developed or revised, the Benefit Criteria receive a weighting. There are 13 (thirteen) Benefit Criteria and their respective weightings, which are identified as follows:

Criteria Weighting

Maintain Regulated (Safety) 16%

Maintain Regulated (Service) 15%

New Regulations (Safety) 15%

New Regulations (Service) 15%

Maintain Discretionary LOS 10%

Growth 9%

Resilience 6%

Financial 5%

Enhance Discretionary LOS 5%

Maintain Aesthetics 1%

Environmental Improvement 1%

Enhance Aesthetics 1%

Working Environment 1%

Sum 100%

2. Multi Criteria Prioritization. The weighted Benefit Criteria are then applied to the projects for prioritization. Each proposed project needs to have at least one benefit for it to be considered in the CIP. A project with at least one (1) benefit (and no more than three [3]) are then loaded into the District’s Multi Criteria Prioritization (MCP) model under one (1) or more of four (4) investment drivers (maintaining an asset, maintaining regulatory compliance, enhancing service, and growth) and scored based on risk improvement and population impacted.

3.a

7

3. Derive Uptake Factor. An Uptake Factor is then applied to scale (normalize)

the projects and reflect the number of customers (or other stakeholders) receiving the benefit. The distinctive feature of the Uptake Factor is to more clearly distinguish between large projects providing benefits to a large number of customers versus small projects providing benefits to a small number of customers. This step results in a total benefit score.

4. Review and Adjust Benefit Scores. This step is conducted collaboratively in a group consensus setting.

5. Calculate Efficiency. This step is performed within the modeling tool. The calculated efficiency value helps to understand how projects compare to other projects of similar cost in terms of total benefit delivered for the cost. This is an important step to help ensure that large projects that may have a broad system-wide benefit are not disadvantaged in the model.

6. Calculate Priority Score. This step is performed within the modeling tool. The priority value is on a 1 to 5 scale, with 1 being most advantageous (highest priority) and 5 being least advantageous (lowest priority).

7. Apply Funding Constraints. For this step, the Authority’s financial (funding) constraints are entered into the model.

8. Fit Projects within Funding Constraints. The model helps staff make

adjustments to projects to fit within funding limitations and also make sure those projects deemed to be most advantageous (highest priority) are delivered first. To do this, the model selects the most advantageous projects for delivery up to each year’s funding constraints. If a project causes the budget limitations to be exceeded, the model selects the next lowest priority project to push to the next business cycle. In other words, the advantageous projects that cannot be completed in the first year due to funding constraints are moved to the next year and so on. Staff must interact with the model to make adjustments for projects that span several years, to make adjustments where one project depends upon another’s completion, and address situations where unacceptable risk is introduced if the model defers projects.

CIP Project Recommendations

The capital projects and the non-capitalized projects identified for FY 2020-2021 are proposed to be included in the Non-Operating Budget for FY 2020-2021. The capital projects have been prioritized and scheduled throughout the 5-Year CIP.

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8

CIP Environmental Review

The 5-Year CIP and the recommended list of capital projects to be included in the FY 2020-2021 Non-Operating Budget is not a “project,” as defined by Section 15061 of the State of California’s California Environmental Quality Act (CEQA) guidelines because approval of the 5-year CIP does not commit the Authority to definite course of action and the approval does not result in a direct or indirect physical change in the environment; therefore, an environmental review is not required for its approval by the Board of Directors.

Environmental review for the individual projects listed within the FY Non-Operating

Budget may be subject to CEQA and will be conducted at the appropriate time during the design phase of those projects and prior to approval of the contract for construction, which is the CEQA trigger for the Authority to be committed to a definite course of action in regard to a project.

CIP Planning Process

Schedule

Each year, as part of the Operating and Non-Operating Budget approval process by the Board of Directors, staff utilizes the following fiscal year (July 1 – June 30) budget schedule:

• Quarterly – conduct capital project coordination meetings with the Authority’s

Technical Advisory Committee. • November/December – initiate staff discussions on CIP project list revisions,

based on updated information compiled throughout the year. • January/February – Internal management review • March – Technical Advisory Committee, Executive Committee, and Board of

Directors review of the preliminary CIP project list. • April – Board of Directors’ Budget Workshop. • June – Board of Directors’ approval of the fiscal year Operating and Non-

Operating Budget, including the 5-Year CIP and funding for the upcoming fiscal year CIP.

Stakeholder Input

Each year, as part of the Operating and Non-Operating Budget approval process by the Board of Directors, stakeholder input is generally solicited as follows:

• Notification of public meetings for the various Board of Directors’ Budget

Workshops and Board of Directors’ and Executive Committee meetings. • Posting of the 5-Year CIP on the Authority’s website. • Distribution of the draft 5-Year CIP to the planning agencies of the City of

Temecula and the City of Murrieta for consistency review with their respective general plans, in accordance with Government Code section 65403.

3.a

FIGURES

3.a

Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS,AeroGRID, IGN, and the GIS User Community

RCWD

Figure 1 - SRRRA Existing Wastewater Service Area

SRRRA BoundaryRCWD Water Service Area Boundary

Wastewater Service AgencyEVMWDRCWDWMWD

K

RCWD

3.a

APPENDIX A

5-YEAR

CAPITAL IMPROVEMENT PLAN

Capital Project List

3.a

SANTA ROSA REGIONAL RESOURCES AUTHORITY CAPITAL PROJECTSFY 20/21 Project List

PROJECTS EST. COST CLASSIFICATION ALLOCATION CAPITALIZED PRIORITY DESCRIPTION

Sewer Collection SystemSewer Manhole Repair $30,000 R&R Collections Yes 2.07 Refurbish manhole with lining to reduce infiltration and deteriorationPipeline Joint Repair $75,000 R&R Collections Yes 2.24 Refurbish and reline gravity mains as required

Santa Rosa Water Reclamation FacilityGrit Classifier Replacement $150,000 R&R Primary/Secondary Yes 1.26 Refer to Data Sheet 2020-01Drain Line Manhole Construction $90,000 OEI Primary/Secondary/Tertiary Yes 1.99 Refer to Data Sheet 2020-02Valve Replacement $25,000 R&R Primary/Secondary Yes 1.66 Valve replacement in the plant washwater distribution systemStairway Construction at SBR Building $80,000 REG Primary/Secondary Yes 1.45 Refer to Data Sheet 2020-03

Total FY 2020-21 Project Costs $450,000

Page 1

3.a



Sewer Collection SystemSewer Manhole Repair $30,000 R&R Collections Yes 2.73 Refurbish manhole with lining to reduce infiltration and deterioratioPipeline Joint Repair $75,000 R&R Collections Yes 2.90 Refurbish and reline gravity mains as required

Santa Rosa Water Reclamation FacilityValve Replacement $25,000 R&R Primary/Secondary Yes 1.66 Valve replacement in the plant washwater distribution systemBackwash Basin Mechanical Replacement $400,000 R&R Tertiary Yes 2.49 Refer to Data Sheet 2021-01Paint (Tertiary Facilities) $25,000 R&R Tertiary No 2.85 Facility painting


Page 2

3.a




Santa Rosa Water Reclamation FacilityValve Replacement $25,000 R&R Primary/Secondary Yes 1.66 Valve replacement in the plant washwater distribution systemGravity Filter Valve/Gate Replacement $450,000 R&R Tertiary Yes 2.92 Replacement of the gravity filter valves and gates.

Bypass Construction/Condition Assessment of Secondary Influent Pipeline $175,000 R&R Primary/Secondary Yes 3.73Construct bypass and construct condition assessment of pipeline supplying the secondary influent

Floc Basin Mechanical Rehabilitation $250,000 R&R Tertiary Yes 3.41 Rehabilitate the mechanical compnenets of the floc basinPaint (Secondary facilities) $30,000 R&R Primary/Secondary No 3.77 Facility painting

Total FY 2022-23 Project Costs $1,035,000

Page 3

3.a




Santa Rosa Water Reclamation FacilityRehabilitation of Secondary Influent Pipeline $300,000 R&R Primary/Secondary Yes 3.73 Rehabiliate the pipeline supplying the secondary influentValve Replacement $25,000 R&R Primary/Secondary Yes 1.66 Valve replacement in the plant washwater distribution system


Page 4

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Santa Rosa Water Reclamation FacilityValve Replacement $25,000 R&R Primary/Secondary Yes 1.66 Valve replacement in the plant washwater distribution systemMotor and Gearbox for Bar Screens and Compactors $45,000 R&R Primary/Secondary Yes 4.30 5 Year maintenance program for Screens and Compactors


Page 5

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APPENDIX B

5-YEAR


Project Funding Breakdown

3.a

Allocation Fiscal Year

20/21 21/22 22/23 23/24 24/25

Collections $105,000 $105,000 $105,000 $105,000 $105,000

Primary/Secondary $315,300 $25,000 $230,000 $325,000 $70,000

Tertiary $29,700 $425,000 $700,000 $0 $0

Total $450,000 $555,000 $1,035,000 $430,000 $175,000

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APPENDIX C

5-YEAR


FY 2020-2021 Capital Project Information

3.a

PROJECT DESCRIPTION Replace the Grit Classifier, which is utilized at the headworks of the Santa Rosa Water Reclamation Facility (SRWRF/Plant) to help separate the grit from organics and water. JUSTIFICATION The existing grit classifier was installed in 2012 and has reached the end of its useful life. Proper grit removal needs to be done at the headworks to help reduce wear to upstream pumps and mechanical equipment. Grit can also cause pipe blockage and reduce effective volume of the Sequencing Batch Reactors (SBR). PROJECT BACKGROUND The existing SRWRF consists of preliminary, secondary, and tertiary treatment, as well as solids handling. The current site layout is illustrated in the attached map. The raw wastewater flow is conveyed to mechanical bars screens that physically remove debris from the incoming Plant sewage. A weir gate has been installed downstream of each bar screen to provide minimum water surface on screen and to measure flow. The screened wastewater is then pumped to the Grit Classifier, where grit is settled. Settled grit is separated and dewatered using a cyclone separator. The Grit Classifier transfers the grit into a dumpster, which is then sent to landfill for disposal. The vortex filter overflow from the cyclone is sent back to the grit chamber. The degritted wastewater is then fed to the SBR. The Grit Classifier was last replaced in 2012 and has reached the end of its useful life, as the separation box has lost material due to corrosion.

Data Sheet No. 2020-01

Project Grit Classifier Replacement

Allocation Primary/Secondary

Funding Amount $150,000

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Project Data Sheet Grit Classifier Replacement Page 2 PROJECT LOCATION MAPS AND FIGURES

Santa Rosa Water Reclamation Facility Layout

3.a

Project Data Sheet Grit Classifier Replacement Page 3

The Existing Grit Classifier Prior to Installation in 2012

PROPOSED EXPENDITURE The total proposed Fiscal Year 2020/2021 capital budget for the Grit Classifier Replacement is $150,000. SCHEDULE AND STATUS The project is scheduled to be completed within 12 months of project initiation. EXPENDITURE SCHEDULE

Planned Expenditure Total Project 2020 2021 2022 2023 2024

Grit Classifier Replacement $150,000 $150,000

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Project Data Sheet Grit Classifier Replacement Page 4 ALTERNATIVE FUNDING SOURCES Grant funding or other outside funding sources are not anticipated for this project. OPERATION COST IMPACTS No increased staff labor will result from the proposed project. USEFUL LIFE Grit Classifier – 7 to 10 years CEQA

Class 1 (Existing Facilities) Categorical Exemption is anticipated to be filed with the County Clerk, per California Environmental Quality Act (CEQA) Guidelines.

3.a

PROJECT DESCRIPTION Construct two (2) additional manholes into the Santa Rosa Water Reclamation Facility (SRWRF) drain line to provide access for future inspection, cleaning, and future assessments. JUSTIFICATION The existing drain line was recently rehabilitated as part of the on-going SRWRF rehabilitation, during which time a manhole was constructed to provide access to the drain line. An additional two (2) manholes would be constructed along the drain line to provide further access for cleaning and inspections. PROJECT BACKGROUND The existing SRWRF consists of preliminary, secondary, and tertiary treatment, as well as solids handling. The drain line was recently rehabilitated as part of the on-going SRWRF rehabilitation. Additional manholes will be constructed along the drain line. One (1) manhole will be constructed along the 730-foot of straight alignment of the drain line where the drain line from the Advanced Water Treatment (AWT) connects. A second manhole will be constructed at the portion of the drain line where the alignment experiences a 45o bend. PROPOSED EXPENDITURE The total proposed Fiscal Year 2020/2021 capital budget for Drain Line Manhole Construction is $90,000. SCHEDULE AND STATUS The project is scheduled to be completed within 12 months of project initiation.


Project Drain Line Manhole Construction



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Project Data Sheet Drain Line Manhole Construction Page 2 EXPENDITURE SCHEDULE

ALTERNATIVE FUNDING SOURCES Grant funding or other outside funding sources are not anticipated for this project. OPERATION COST IMPACTS No increased staff labor will result from the proposed project. USEFUL LIFE Manholes – 75 years CEQA

Notice of Exemption is anticipated to be filed with the County Clerk, per RCWD’s Local California Environmental Quality Act (VEQA) Guidelines.


Drain Line Manhole

Construction $90,000 $90,000

3.a

PROJECT DESCRIPTION Install a free standing stairway for the Sequencing Batch Reactor (SBR) Building, to be configured as a pair of stairs with an intermediate landing. JUSTIFICATION The existing SBR system consists of reactors, each with a liquid volume of 838,000 gallons. The reactors are 140 feet long, 40 feet wide, and 26 feet deep (side water depth). The normal operating depth range is from 14 to 20 feet deep. The reactors are fitted with jet aeration system supplied by positive displacement blowers. Currently plant personnel have access to the roof of the SBR building via a ladder in SBR No. 1. Installation of electrical conduit in SBR No. 1, required as part of the Santa Rosa Water Reclamation Facility (SRWRF) rehabilitation, will remove this ladder from service. This project will restore access to the roof. Access to the roof is required for weekly testing of hydrogen sulfide (H2S) in order to comply with the Air Quality Management District (AQMD) permit, as well as for monthly maintenance activities. PROJECT BACKGROUND The existing SRWRF consists of preliminary, secondary and tertiary treatment, as well as solids handling. The current site layout is illustrated in the attached map. The raw wastewater flow is conveyed to mechanical bars screens that physically remove debris from the incoming Plant sewage. The degritted wastewater is then fed into the SBR. The wastewater flows by gravity into the SBRs at specified times and rates. The SBRs operate in cycles consisting of fill, react, settle, decant, and idle. The fill cycle consists of static fill, anoxic fill, and aerated fill. The react cycle consists of three phases: aerated phase (called React 1), anoxic mixed phase (called Denit), and the second aerated phase (called React 2). SRWRF personnel have access to the roof of the SBR building via a ladder in SBR No. 1, which will be removed from service when additional electrical conduit is installed as part of the SRWRF rehabilitation. This project will restore that access via a free standing stairway, with the structure, stringers, treads and rails selected to match the rest of the SRWRF rehabilitation.


Project Stairway Construction at the SBR Building



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Project Data Sheet Stairway Construction at the SBR Building Page 2 PROJECT LOCATION MAPS AND FIGURES


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Project Data Sheet Stairway Construction at the SBR Building Page 3

Potential Stair Design for the SBR Building

PROPOSED EXPENDITURE The total proposed Fiscal Year 2020/2021 capital budget for the Stairway Construction at the SBR Building is $80,000. SCHEDULE AND STATUS The project is scheduled to be completed within 12 months of project initiation.

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Project Data Sheet Stairway Construction at the SBR Building Page 4 EXPENDITURE SCHEDULE

ALTERNATIVE FUNDING SOURCES Grant funding or other outside funding sources are not anticipated for this project. OPERATION COST IMPACTS No increased staff labor will result from the proposed project. USEFUL LIFE Stairway – 40 years CEQA



Stairway Construction at the SBR Building $80,000 $80,000

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APPENDIX D

5-YEAR


FY 2021-2022 Capital Project Information

3.a

PROJECT DESCRIPTION Replace portions of the mechanical equipment in the gravity filter backwash basin, including valves, external equipment, supports, and elements of the sludge scrapper. JUSTIFICATION There is evidence of significant coating failure and corrosion of the backwash basin mechanical equipment. There is a loss of coating, corrosion, and material loss visible at the center drive assembly housing, sludge collector, and supporting superstructure, that may result in infrastructure failure. PROJECT BACKGROUND The Advanced Water Treatment (AWT) at the Santa Rosa Water Reclamation Facility (SRWRF) was constructed in the early 1990’s, adding tertiary process facilities to the SRWRF for further treatment of the secondary Sequencing Batch Reactor (SBR) effluent. The AWT includes flow equalization, an AWT pump station, rapid mix, flocculation, clarification, disinfection, and supporting. SBR secondary effluent is conveyed by gravity to the flow equalization basins at the head of the AWT. The tertiary influent is pumped at the AWT pump station to the rapid mix/flocculation basins, centrally located between the two (2) tertiary clarifiers. Clarifier effluent is conveyed by gravity to four (4) dual media filters, followed by disinfection at the chlorine contact tanks. The Title 22 quality recycled water produced by this facility is conveyed to the forebay at the Elm Street Booster Station. In July 2012, Rancho California Water District (Rancho Water) completed the SRWRF General Condition Assessment (Project No. PG165). The major SRWRF processes included in this assessment were the existing headworks, grit removal, secondary process (SBR), tertiary process (AWT), and dewatering facilities. The assessment considered the age and physical condition of the facilities, safety and access, process efficiency, and operational constraints. As reported in the SRWRF General Condition Assessment, there is evidence of significant coating failure and corrosion. There is a loss of coating, corrosion, and material loss visible at the center drive assembly housing, sludge collector, and supporting superstructure. The sequencing and subsequent costs of this project will be refined in the AWT Facility Assessment, anticipated for completion by the end for Fiscal Year (FY) 2019/2020.


Project Backwash Basin Mechanical Replacement

Allocation Tertiary


3.a

Project Data Sheet Backwash Basin Mechanical Replacement Page 2 PROJECT LOCATION MAPS AND FIGURES


Advanced Water Treatment (AWT) Flow Diagram

3.a

Project Data Sheet Backwash Basin Mechanical Replacement Page 3

Backwash Basin Mechanical Equipment with Loss of Coating

Backwash Basin Mechanical Equipment with Loss of Coating

3.a

Project Data Sheet Backwash Basin Mechanical Replacement Page 4 PROPOSED EXPENDITURE The total proposed FY 2021/2022 capital budget for the Backwash Basin Mechanical Replacement is $400,000. SCHEDULE AND STATUS The project is scheduled to be completed within 18 months of project initiation. EXPENDITURE SCHEDULE

ALTERNATIVE FUNDING SOURCES Grant funding or other outside funding sources are not anticipated for this project. OPERATION COST IMPACTS No increased staff labor will result from the proposed project. USEFUL LIFE Mechanical Equipment, Valves and Gates – 30 years CEQA



Backwash Basin Mechanical

Replacement $400,000 $400,000

3.a

5 Year CIP Cost Allocation Schedule

Draft 5-Year CIP

Allocation Fiscal Year 20/21 21/22 22/23 23/24 24/25

Collections $105,000 $105,000 $105,000 $105,000 $105,000 Primary/Secondary $315,000 $25,000 $230,000 $325,000 $70,000

Tertiary $30,000 $425,000 $700,000 $0 $0 Total $450,000 $555,000 $1,035,000 $430,000 $175,000

Capital & Debt Expense Allocation Agency Primary & Secondary Tertiary Treatment Collections Elsinore 40.00% 40.00% 43.57% Rancho 40.00% 60.00% 36.61% Western 20.00% 0.00% 19.82%

Total 100.00% 100.00% 100.00%

Agency Share of Draft 5-Year CIP

Agency Fiscal Year 20/21 21/22 22/23 23/24 24/25

Elsinore $183,749 $225,749 $417,749 $175,749 $73,749 Rancho $182,441 $303,441 $550,441 $168,441 $66,441 Western $83,811 $25,811 $66,811 $85,811 $34,811

Total $450,000 $555,000 $1,035,000 $430,000 $175,000

3.b



ITEM 4: CONSIDER APPROVAL OF THE FISCAL YEAR 2020-2021 OPERATING, NON-OPERATING, AND CAPITAL PROJECTS BUDGETS; AND ADOPTION OF THE APPROPRIATE RESOLUTION



RECOMMENDATION:

The Santa Rosa Regional Resources Authority (SRRRA) Executive Advisory Committee

(EAC) reviewed this item and recommended the Board of Directors (Board) approve the

proposed Fiscal Year (FY) 2020-2021 Operating, Non-Operating, and Capital Budgets (Budget),

and adopt the appropriate resolution therein.

DISCUSSION:

Process Overview

The Joint Exercise of Powers Agreement (JPA Agreement) that formed the SRRRA calls

for the annual adoption of Operating, Non-Operating, and Capital Projects Budgets, which

outline the revenue requirements of each budget and detail the contributions required by each

member agency, according to the agreed-upon cost allocation methodology. Both the EAC and

Technical Advisory Committee (TAC) play a significant role in the review and oversight of the

budget development process before it arrives to the Board for adoption consideration. The TAC

provides a technical operations and engineering review of the capital projects proposed, and

major operations costs involving repair and replacement of equipment, and provides their

recommendation to the EAC for consideration. The EAC reviews the information for the three

budgets in detail, including elements such as staffing plans, detailed cost comparison, review of

the overhead information, cost accounting methodology, debt service levels, and capital needs.

The Administrator and EAC have met several times to review the various elements of the

Budget. The EAC finalized its recommendation to the Board of the proposed FY 2020-2021

Budget amounts, with the understanding that the Operating Budget cost allocations would be

based initially on the permanent flow monitoring data for Calendar Year 2019 but subject to a

final proportionate adjustment among the member agencies once actual flows from the

4


member agencies are known for the full fiscal year period of July 1, 2020 through June 30,

2021. Staff will provide the Board with a presentation of the proposed FY 2020-2021 Non-

Operating Budget. The proposed FY 2020-2021 Operating Budget was presented to the Board

at their regular meeting of March 10, 2020 in detail and includes an overall 1.08 percent

increase.


The Non-Operating Budget for FY 2020-2021 (Non-Op Budget) totals $18,380,165 of

which $13,040,074 relates to capital project expenditures comprised of $450,000 for new

projects, $107,000 for Capital Equipment, and $12,483,074 for existing projects. It is

anticipated that, of the total existing project costs, $11,411,168 will be reimbursed by the State

Revolving Fund (SRF) Loan; $188,266 will be reimbursed by the 2017AB Bond issue, with the

remaining amount of $883,640 funded as Pay-Go Capital. Furthermore, $5,340,091 of the Non-

Op Budget represents the amount necessary to service the 2017AB Bond Debt and represents a

decrease of $162,650 or 3.0 percent from the prior year. The net Non-Op Budget (less the SRF

Loan and Bond Financing) totals $6,780,731. Individual member-agency contributions are

based on the projected type of expenses as divided over the agreed-upon ultimate capacity

allocations determined in the JPA Agreement.

Capital Projects Budget

The Capital Projects Budget includes $11,411,168 for the Santa Rosa Water Reclamation

Facility Rehabilitation Project that will be funded by the SRF Loan. The expenditures also

include $1,071,906 for sixteen existing projects approved prior to FY 2020-2021, that will carry

over to the new fiscal year Budget. The 2017AB Bond issue will fund $188,266 of the total cost

of the sixteen existing projects. The Capital Projects Budget also includes $450,000 for new

projects and $107,000 for Capital Equipment.

ALTERNATIVES:

Not applicable

4


FISCAL ANALYSIS:

All expenditures projected in the proposed FY 2020-2021 Budget are recoverable by

member-agency contributions or existing reserves. A summary of the member-agency budget

contribution for both proposed and current budget years is provided in the following page.

FY 2020-2021 TOTAL OPERATING & NON-OPERATING BUDGET COST-SHARE COMPARISON

Operating EVMWD RCWD WMWD Total

FY 2020-2021 $1,620,121 $2,329,346 $1,029,227 $4,978,695

FY 2019-2020 1,602,814 2,287,597 1,035,096 4,925,507

Increase/(Decrease) $ $17,308 $41,749 ($5,869) $53,187

Increase/(Decrease) % 1.08% 1.83% (0.57%) 1.08%

Non-Operating EVMWD RCWD WMWD Total

FY 2020-2021 $2,806,431 $2,764,977 $1,209,322 $6,780,731

FY 2019-2020 2,669,057 2,597,256 1,167,184 6,433,497

Increase/(Decrease) $ $137,374 $167,721 $42,138 $347,233

Increase/(Decrease) % 5.15% 6.46% 3.61% 5.40%

Total EVMWD RCWD WMWD Total

FY 2020-2021 $4,426,553 $5,094,323 $2,238,549 $11,749,425

FY 2019-2020 4,271,871 4,884,854 2,202,280 11,359,005

Increase/(Decrease) $ $154,682 $209,470 $36,269 $400,421

Increase/(Decrease) % 3.62% 4.29% 1.65% 3.53%


None


A. Non-Operating Budget - Budget Statement & Comparisons Fiscal Year 2020-2021 B. Non-Operating Budget - Debt Service Schedule Fiscal Year 2020-2021 C. Non-Operating Budget - CIP Fiscal Year 2020-2021 D. Draft Resolution E. Proposed Fiscal Year 2020-2021 SRRRA Budget

4

Non-Operating Expenses TotalDebt Service

ContributionsCapital Replacement

Contributions*SRF Loan

Reimbursement2017 Bond

ReimbursementPrimary & Secondary Treatment: Existing Debt Service 3,033,589$ 3,033,589$ -$ -$ -$ Pay-go Capital - New Projects 315,000 - 315,000 - - Pay-go Capital - Existing Projects* 9,918,929 - 27,807 9,854,494 36,628 Pay-go Capital - Capital Equipment 57,000 - 57,000 - - Total Primary & Secondary Treatment (FY 20-21) 13,324,518$ 3,033,589$ 399,807$ 9,854,494$ 36,628$

Prior Year Total (FY 19-20) 20,148,459 3,126,530 54,000 16,700,000 267,929 Year to Year Increase/(Decrease) (6,823,941)$ (92,941)$ 345,807$ (6,845,506)$ (231,301)$

Tertiary Treatment: Existing Debt Service 436,250$ 436,250$ -$ -$ -$ Pay-go Capital - New Projects 30,000 - 30,000 - - Pay-go Capital - Existing Projects* 1,950,448 - 242,136 1,556,674 151,638 Pay-go Capital - Capital Equipment 2,000 - 2,000 - - Total Tertiary Treatment (FY 20-21) 2,418,698$ 436,250$ 274,136$ 1,556,674$ 151,638$

Prior Year Total (FY 19-20) 3,252,464 448,462 125,000 1,650,000 1,029,002 Year to Year Increase/(Decrease) (833,765)$ (12,212)$ 149,136$ (93,326)$ (877,364)$

Collections System: Existing Debt Service 1,870,251$ 1,870,251$ -$ -$ -$ Pay-go Capital - New Projects 105,000 - 105,000 - - Pay-go Capital - Existing Projects* 613,697 - 613,697 - - Pay-go Capital - Capital Equipment 48,000 - 48,000 - - Total Collections System (FY 20-21) 2,636,948$ 1,870,251$ 766,697$ -$ -$

Prior Year Total (FY 19-20) 2,679,505 1,927,748 751,757 - - Year to Year Increase/(Decrease) (42,557)$ (57,498)$ 14,940$ -$ -$

Total Non-Operating Budget (FY 20-21) 18,380,165$ 5,340,091$ 1,440,640$ 11,411,168$ 188,266$ Prior Year Total (FY 19-20) 26,080,428 5,502,741 930,757 18,350,000 1,296,930 Year to Year Increase/(Decrease) (7,700,263)$ (162,650)$ 509,883$ (6,938,832)$ (1,108,664)$

Total Non-Operating By Category Existing Debt Service 5,340,091$ Pay-go Capital - New Projects 450,000 Pay-go Capital - Existing Projects* 883,640 Pay-go Capital - Financed Projects* 11,599,434 Pay-go Capital - Capital Equipment 107,000 Total Non-Operating Budget 18,380,165$

Less SRF Reimbursable Projects (11,411,168)$ Less 2017 Bond Reimbursable Projects (188,266)

Total Non-Operating Contributions Required 6,780,731$

* Based on estimate. Actual amount will depend on realized expenditures on previously approved capital replacement projects prior to FY 21.

Source of Funds

SRRRA Non-Operating Budget FY 2020-2021Budget Statement

Page 1 of 2

4.a

Cost Share % EVMWD RCWD WMWD TotalPrimary/Secondary Treatment 40.00% 40.00% 20.00% 100.00%Tertiary Treatment 40.00% 60.00% 0.00% 100.00%Collections System 43.57% 36.61% 19.82% 100.00%

Cost Share $ EVMWD RCWD WMWD TotalPrimary/Secondary Treatment 1,213,436$ 1,213,436$ 606,718$ 3,033,589$ Tertiary Treatment 174,500 261,750 - 436,250 Collections System 814,868 684,699 370,684 1,870,251 Annual Cost Share (FY 20-21) 2,202,804$ 2,159,885$ 977,402$ 5,340,091$ Prior Year Annual Cost Share (FY 19-20) 2,269,917 2,225,438 1,007,386 5,502,741 Year to Year Increase/(Decrease) (67,113)$ (65,553)$ (29,984)$ (162,650)$

Cost Share $Primary/Secondary Treatment 159,923$ 159,923$ 79,961$ 399,807$ Tertiary Treatment 109,654 164,482 - 274,136 Collections System 334,050 280,688 151,959 766,697 Annual Cost Share (FY 20-21) 603,627$ 605,092$ 231,921$ 1,440,640$ Prior Year Annual Cost Share (FY 19-20) 399,140 371,818 159,798 930,757 Year to Year Increase/(Decrease) 204,487$ 233,274$ 72,123$ 509,883$

Annual Member Agency Contribution (FY 20-21) 2,806,431$ 2,764,977$ 1,209,322$ 6,780,731$ PY Annual Member Agency Contribution (FY 19-20) 2,669,057 2,597,256 1,167,184 6,433,497 Year to Year Increase/(Decrease) 137,374$ 167,721$ 42,138$ 347,233$

SRRRA Non-Operating Budget FY 2020-2021Member Agency Contribution Allocation

Capital Replacement Funds

Member Agency

Debt Service Allocation

Total Allocation

Page 2 of 2

4.a

TotalPrincipal Interest Debt Service Principal Interest Debt Service Principal Interest Debt Service Debt Service

2/1/2021 - 323,541 323,541 - 320,429 320,429 - 140,950 140,950 784,920 8/1/2021 1,574,173 323,541 1,897,714 1,537,237 320,429 1,857,666 703,590 140,950 844,540 4,599,920 2/1/2022 - 300,622 300,622 - 298,048 298,048 - 130,706 130,706 729,375 8/1/2022 1,116,156 300,622 1,416,778 1,089,968 298,048 1,388,015 498,876 130,706 629,582 3,434,375 2/1/2023 - 283,312 283,312 - 281,144 281,144 - 122,969 122,969 687,425 8/1/2023 1,093,462 283,312 1,376,774 1,067,806 281,144 1,348,950 488,732 122,969 611,702 3,337,425 2/1/2024 - 265,408 265,408 - 263,660 263,660 - 114,967 114,967 644,035 8/1/2024 1,128,535 265,408 1,393,943 1,102,056 263,660 1,365,716 504,409 114,967 619,376 3,379,035 2/1/2025 - 246,339 246,339 - 245,039 245,039 - 106,444 106,444 597,822 8/1/2025 1,138,851 246,339 1,385,190 1,112,130 245,039 1,357,168 509,019 106,444 615,464 3,357,822 2/1/2026 - 226,447 226,447 - 225,613 225,613 - 97,553 97,553 549,612 8/1/2026 1,149,167 226,447 1,375,613 1,122,203 225,613 1,347,816 513,630 97,553 611,183 3,334,612 2/1/2027 - 205,887 205,887 - 205,536 205,536 - 88,364 88,364 499,787 8/1/2027 1,159,040 205,887 1,364,928 1,137,695 205,536 1,343,231 513,264 88,364 601,628 3,309,787 2/1/2028 - 186,467 186,467 - 186,455 186,455 - 79,779 79,779 452,701 8/1/2028 1,199,798 186,467 1,386,265 1,184,182 186,455 1,370,637 526,019 79,779 605,799 3,362,701 2/1/2029 - 163,693 163,693 - 163,902 163,902 - 69,856 69,856 397,451 8/1/2029 1,246,871 163,693 1,410,565 1,235,166 163,902 1,399,067 542,963 69,856 612,819 3,422,451 2/1/2030 - 139,077 139,077 - 139,424 139,424 - 59,212 59,212 337,714 8/1/2030 1,291,651 139,077 1,430,729 1,341,575 139,424 1,480,999 511,774 59,212 570,986 3,482,714 2/1/2031 - 115,198 115,198 - 114,501 114,501 - 49,850 49,850 279,550 8/1/2031 1,343,230 115,198 1,458,428 1,391,943 114,501 1,506,444 534,827 49,850 584,678 3,549,550 2/1/2032 - 87,745 87,745 - 85,686 85,686 - 39,218 39,218 212,650 8/1/2032 1,537,036 87,745 1,624,781 1,500,972 85,686 1,586,658 686,992 39,218 726,210 3,937,650 2/1/2033 - 57,004 57,004 - 55,667 55,667 - 25,479 25,479 138,150 8/1/2033 1,642,256 57,004 1,699,261 1,603,723 55,667 1,659,390 734,021 25,479 759,499 4,118,150 2/1/2034 - 32,371 32,371 - 31,611 31,611 - 14,468 14,468 78,450 8/1/2034 2,158,040 32,371 2,190,411 2,107,405 31,611 2,139,016 964,555 14,468 979,023 5,308,450

18,778,267 5,266,224 24,044,491 18,534,060 5,233,429 23,767,488 8,232,673 2,279,635 10,512,308 58,324,288

WMWDEVMWD RCWDDate

Total 2017 A&B Total Debt Service BreakdownTotal 2017 A&B Debt Service by Member Agency

Page 1 of 6

4.b


2/1/2021 - 439,015 439,015 - 77,756 77,756 - 268,149 268,149 784,920 8/1/2021 2,180,722 439,015 2,619,738 284,904 77,756 362,660 1,349,373 268,149 1,617,522 4,599,920 2/1/2022 - 407,265 407,265 - 73,608 73,608 - 248,502 248,502 729,375 8/1/2022 1,546,227 407,265 1,953,491 202,009 73,608 275,618 956,764 248,502 1,205,266 3,434,375 2/1/2023 - 383,285 383,285 - 70,475 70,475 - 233,665 233,665 687,425 8/1/2023 1,514,788 383,285 1,898,073 197,902 70,475 268,377 937,310 233,665 1,170,975 3,337,425 2/1/2024 - 358,483 358,483 - 67,235 67,235 - 218,317 218,317 644,035 8/1/2024 1,563,375 358,483 1,921,858 204,250 67,235 271,485 967,375 218,317 1,185,692 3,379,035 2/1/2025 - 332,067 332,067 - 63,784 63,784 - 201,972 201,972 597,822 8/1/2025 1,577,666 332,067 1,909,732 206,117 63,784 269,901 976,218 201,972 1,178,189 3,357,822 2/1/2026 - 304,509 304,509 - 60,183 60,183 - 184,920 184,920 549,612 8/1/2026 1,591,956 304,509 1,896,465 207,984 60,183 268,167 985,060 184,920 1,169,980 3,334,612 2/1/2027 - 276,028 276,028 - 56,463 56,463 - 167,297 167,297 499,787 8/1/2027 1,593,632 276,028 1,869,660 234,845 56,463 291,308 981,523 167,297 1,148,820 3,309,787 2/1/2028 - 249,365 249,365 - 52,446 52,446 - 150,890 150,890 452,701 8/1/2028 1,636,377 249,365 1,885,742 270,878 52,446 323,324 1,002,745 150,890 1,153,635 3,362,701 2/1/2029 - 218,459 218,459 - 46,981 46,981 - 132,011 132,011 397,451 8/1/2029 1,691,300 218,459 1,909,760 300,890 46,981 347,871 1,032,810 132,011 1,164,821 3,422,451 2/1/2030 - 185,258 185,258 - 40,645 40,645 - 111,810 111,810 337,714 8/1/2030 1,624,738 185,258 1,809,996 577,646 40,645 618,292 942,616 111,810 1,054,426 3,482,714 2/1/2031 - 155,471 155,471 - 29,446 29,446 - 94,633 94,633 279,550 8/1/2031 1,696,190 155,471 1,851,661 586,981 29,446 616,427 986,829 94,633 1,081,462 3,549,550 2/1/2032 - 121,555 121,555 - 15,881 15,881 - 75,215 75,215 212,650 8/1/2032 2,129,277 121,555 2,250,831 278,183 15,881 294,064 1,317,540 75,215 1,392,755 3,937,650 2/1/2033 - 78,969 78,969 - 10,317 10,317 - 48,864 48,864 138,150 8/1/2033 2,275,039 78,969 2,354,008 297,226 10,317 307,543 1,407,734 48,864 1,456,598 4,118,150 2/1/2034 - 44,843 44,843 - 5,859 5,859 - 27,748 27,748 78,450 8/1/2034 2,989,562 44,843 3,034,405 390,576 5,859 396,435 1,849,862 27,748 1,877,610 5,308,450

25,610,849 7,109,145 32,719,994 4,240,392 1,342,160 5,582,552 15,693,760 4,327,982 20,021,742 58,324,288

Primary & Secondary Tertiary treatment Collection systemDate

Total 2017 A&B Debt Service by FunctionTotal 2017 A&B Total Debt Service Breakdown

Page 2 of 6

4.b


2/1/2021 - 175,606 175,606 - 31,103 31,103 - 116,832 116,832 323,541 8/1/2021 872,289 175,606 1,047,895 113,962 31,103 145,064 587,922 116,832 704,754 1,897,714 2/1/2022 - 162,906 162,906 - 29,443 29,443 - 108,272 108,272 300,622 8/1/2022 618,491 162,906 781,397 80,804 29,443 110,247 416,862 108,272 525,135 1,416,778 2/1/2023 - 153,314 153,314 - 28,190 28,190 - 101,808 101,808 283,312 8/1/2023 605,915 153,314 759,229 79,161 28,190 107,351 408,386 101,808 510,194 1,376,774 2/1/2024 - 143,393 143,393 - 26,894 26,894 - 95,121 95,121 265,408 8/1/2024 625,350 143,393 768,743 81,700 26,894 108,594 421,485 95,121 516,606 1,393,943 2/1/2025 - 132,827 132,827 - 25,514 25,514 - 87,999 87,999 246,339 8/1/2025 631,066 132,827 763,893 82,447 25,514 107,960 425,338 87,999 513,337 1,385,190 2/1/2026 - 121,804 121,804 - 24,073 24,073 - 80,570 80,570 226,447 8/1/2026 636,782 121,804 758,586 83,194 24,073 107,267 429,191 80,570 509,760 1,375,613 2/1/2027 - 110,411 110,411 - 22,585 22,585 - 72,891 72,891 205,887 8/1/2027 637,453 110,411 747,864 93,938 22,585 116,523 427,650 72,891 500,541 1,364,928 2/1/2028 - 99,746 99,746 - 20,979 20,979 - 65,743 65,743 186,467 8/1/2028 654,551 99,746 754,297 108,351 20,979 129,330 436,896 65,743 502,639 1,386,265 2/1/2029 - 87,384 87,384 - 18,792 18,792 - 57,517 57,517 163,693 8/1/2029 676,520 87,384 763,904 120,356 18,792 139,148 449,995 57,517 507,512 1,410,565 2/1/2030 - 74,103 74,103 - 16,258 16,258 - 48,716 48,716 139,077 8/1/2030 649,895 74,103 723,998 231,058 16,258 247,317 410,698 48,716 459,413 1,430,729 2/1/2031 - 62,188 62,188 - 11,778 11,778 - 41,232 41,232 115,198 8/1/2031 678,476 62,188 740,664 234,792 11,778 246,571 429,961 41,232 471,193 1,458,428 2/1/2032 - 48,622 48,622 - 6,352 6,352 - 32,771 32,771 87,745 8/1/2032 851,711 48,622 900,333 111,273 6,352 117,625 574,052 32,771 606,823 1,624,781 2/1/2033 - 31,588 31,588 - 4,127 4,127 - 21,290 21,290 57,004 8/1/2033 910,016 31,588 941,603 118,891 4,127 123,017 613,350 21,290 634,640 1,699,261 2/1/2034 - 17,937 17,937 - 2,343 2,343 - 12,090 12,090 32,371 8/1/2034 1,195,825 17,937 1,213,762 156,231 2,343 158,574 805,985 12,090 818,075 2,190,411

10,244,339 2,843,658 13,087,998 1,696,157 536,864 2,233,021 6,837,771 1,885,702 8,723,473 24,044,491

Date

EVMWD Total 2017 A&B Debt ServiceTotal 2017 A&B Total Debt Service Breakdown

Primary & Secondary Tertiary treatment Collection system

Page 3 of 6

4.b


2/1/2021 - 175,606 175,606 - 46,654 46,654 - 98,169 98,169 320,429 8/1/2021 872,289 175,606 1,047,895 170,943 46,654 217,596 494,006 98,169 592,175 1,857,666 2/1/2022 - 162,906 162,906 - 44,165 44,165 - 90,977 90,977 298,048 8/1/2022 618,491 162,906 781,397 121,206 44,165 165,371 350,271 90,977 441,248 1,388,015 2/1/2023 - 153,314 153,314 - 42,285 42,285 - 85,545 85,545 281,144 8/1/2023 605,915 153,314 759,229 118,741 42,285 161,026 343,149 85,545 428,694 1,348,950 2/1/2024 - 143,393 143,393 - 40,341 40,341 - 79,926 79,926 263,660 8/1/2024 625,350 143,393 768,743 122,550 40,341 162,891 354,156 79,926 434,082 1,365,716 2/1/2025 - 132,827 132,827 - 38,270 38,270 - 73,942 73,942 245,039 8/1/2025 631,066 132,827 763,893 123,670 38,270 161,940 357,393 73,942 431,335 1,357,168 2/1/2026 - 121,804 121,804 - 36,110 36,110 - 67,699 67,699 225,613 8/1/2026 636,782 121,804 758,586 124,790 36,110 160,900 360,631 67,699 428,330 1,347,816 2/1/2027 - 110,411 110,411 - 33,878 33,878 - 61,247 61,247 205,536 8/1/2027 637,453 110,411 747,864 140,907 33,878 174,785 359,336 61,247 420,583 1,343,231 2/1/2028 - 99,746 99,746 - 31,468 31,468 - 55,241 55,241 186,455 8/1/2028 654,551 99,746 754,297 162,527 31,468 193,994 367,105 55,241 422,346 1,370,637 2/1/2029 - 87,384 87,384 - 28,189 28,189 - 48,329 48,329 163,902 8/1/2029 676,520 87,384 763,904 180,534 28,189 208,722 378,112 48,329 426,441 1,399,067 2/1/2030 - 74,103 74,103 - 24,387 24,387 - 40,934 40,934 139,424 8/1/2030 649,895 74,103 723,998 346,588 24,387 370,975 345,092 40,934 386,025 1,480,999 2/1/2031 - 62,188 62,188 - 17,668 17,668 - 34,645 34,645 114,501 8/1/2031 678,476 62,188 740,664 352,189 17,668 369,856 361,278 34,645 395,923 1,506,444 2/1/2032 - 48,622 48,622 - 9,528 9,528 - 27,536 27,536 85,686 8/1/2032 851,711 48,622 900,333 166,910 9,528 176,438 482,351 27,536 509,888 1,586,658 2/1/2033 - 31,588 31,588 - 6,190 6,190 - 17,889 17,889 55,667 8/1/2033 910,016 31,588 941,603 178,336 6,190 184,526 515,371 17,889 533,261 1,659,390 2/1/2034 - 17,937 17,937 - 3,515 3,515 - 10,159 10,159 31,611 8/1/2034 1,195,825 17,937 1,213,762 234,346 3,515 237,861 677,234 10,159 687,393 2,139,016

10,244,339 2,843,658 13,087,998 2,544,235 805,296 3,349,531 5,745,485 1,584,474 7,329,960 23,767,488

Tertiary treatment Collection systemDate

RCWD Total 2017 A&B Debt ServiceTotal 2017 A&B Total Debt Service Breakdown

Primary & Secondary

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2/1/2021 - 87,803 87,803 - - - - 53,147 53,147 140,950 8/1/2021 436,144 87,803 523,948 - - - 267,446 53,147 320,593 844,540 2/1/2022 - 81,453 81,453 - - - - 49,253 49,253 130,706 8/1/2022 309,245 81,453 390,698 - - - 189,631 49,253 238,884 629,582 2/1/2023 - 76,657 76,657 - - - - 46,312 46,312 122,969 8/1/2023 302,958 76,657 379,615 - - - 185,775 46,312 232,087 611,702 2/1/2024 - 71,697 71,697 - - - - 43,270 43,270 114,967 8/1/2024 312,675 71,697 384,372 - - - 191,734 43,270 235,004 619,376 2/1/2025 - 66,413 66,413 - - - - 40,031 40,031 106,444 8/1/2025 315,533 66,413 381,946 - - - 193,486 40,031 233,517 615,464 2/1/2026 - 60,902 60,902 - - - - 36,651 36,651 97,553 8/1/2026 318,391 60,902 379,293 - - - 195,239 36,651 231,890 611,183 2/1/2027 - 55,206 55,206 - - - - 33,158 33,158 88,364 8/1/2027 318,726 55,206 373,932 - - - 194,538 33,158 227,696 601,628 2/1/2028 - 49,873 49,873 - - - - 29,906 29,906 79,779 8/1/2028 327,275 49,873 377,148 - - - 198,744 29,906 228,650 605,799 2/1/2029 - 43,692 43,692 - - - - 26,165 26,165 69,856 8/1/2029 338,260 43,692 381,952 - - - 204,703 26,165 230,867 612,819 2/1/2030 - 37,052 37,052 - - - - 22,161 22,161 59,212 8/1/2030 324,948 37,052 361,999 - - - 186,826 22,161 208,987 570,986 2/1/2031 - 31,094 31,094 - - - - 18,756 18,756 49,850 8/1/2031 339,238 31,094 370,332 - - - 195,589 18,756 214,346 584,678 2/1/2032 - 24,311 24,311 - - - - 14,908 14,908 39,218 8/1/2032 425,855 24,311 450,166 - - - 261,136 14,908 276,044 726,210 2/1/2033 - 15,794 15,794 - - - - 9,685 9,685 25,479 8/1/2033 455,008 15,794 470,802 - - - 279,013 9,685 288,698 759,499 2/1/2034 - 8,969 8,969 - - - - 5,500 5,500 14,468 8/1/2034 597,912 8,969 606,881 - - - 366,643 5,500 372,142 979,023

5,122,170 1,421,829 6,543,999 0 0 0 3,110,503 857,806 3,968,309 10,512,308

Primary & SecondaryDate

WMWD Total 2017 A&B Debt ServiceTotal 2017 A&B Total Debt Service Breakdown

Tertiary treatment Collection system

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Miscellaneous Bond Fees Annual $ Bank of New York Custodial Fees 3,000$ Willdan - Arbitrage 2,250 ABP - Continuing Disclosure 6,250 Total Miscellaneous Bond Fees 11,500$

Bond Fees & Reserve Interest Earnings Annual $Miscellaneous Bond Fees 11,500$ Est. Interest Earned on Debt Res. Requirement1 (56,250)

Bond Fee/(Debt Service Credit) (44,750)$

Allocation % % of PrincipalPrimary/Secondary 56.23%Tertiary 9.31%Collections 34.46%

Total 100.00%

Allocation $ Bond FeesPrimary/Secondary (25,164)$ Tertiary (4,166) Collections (15,420)

Total (44,750)$

Net Debt Service Calculation $FY 20-21 Debt Service 5,384,841$ Less Bond Fee/(Debt Service Credit) (44,750) Net FY 20-21 Debt Service 5,340,091$

1 Interest calculated at 2.5%

Total 2017 A&B Allocation of Bond Fees

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Capital Replacement ContributionTotal

AuthorizedActual Exp. as of January 31, 2020

Est. Exp. Remainder of FY 19-20

Total Projected FY 20-21 Expenditures

Primary/Secondary Treatment

Tertiary Treatment Collections

Est. Expenditures Post FY 20-21

Sewer Collection Repairs S0195 500,000$ 240,215$ -$ 259,785$ $ - $ - $ 259,785 $ - Sewer Facilities Master Plan S0003 33,509 - 33,509 33,509 - - 33,509 - Temporary Flow Monitoring S0005 165,400 105,487 25,000 25,000 - - 25,000 - SRWRF Disinfection Conversion S0006X 945,000 - 945,000 - - - - - Drying Bed 5 Conversion S0007 175,000 5,246 36,000 133,754 - 133,754 - - AWT Facility Assessment S0008 125,000 6,618 10,000 108,382 - 108,382 - - Rehabilitate Flow Diversions S0010 100,000 1,439 - 98,561 - - 98,561 - Pipeline Joint Repair S0014 75,000 218 - 74,782 - - 74,782 - Permanent Flow Monitoring S0016 120,000 95,240 10,000 14,760 - - 14,760 - Pretreatment Program Local Limits S0020 37,807 - 10,000 27,807 27,807 - - - Sewer Manhole Repair S0030 30,000 9,950 - 20,050 - - 20,050 - Pipeline Joint Repair Unassigned 75,000 - - 75,000 - - 75,000 - Slurry Seal (Cal Oaks Lift Station) Unassigned 4,250 - - 4,250 - - 4,250 - Paint (Cal Oaks Lift Station) Unassigned 8,000 - - 8,000 - - 8,000 -

Capital Replacement Contribution Total 2,393,967$ 464,412$ 1,069,509$ 883,640$ 27,807$ 242,136$ 613,697$ -$

SRF Loan ReimbursementSRWRF Rehabilitation* S0013 36,400,000$ 18,988,833$ 6,000,000$ 11,411,168$ 9,854,494$ 1,556,674$ -$ -$

SRF Loan Reimbursement Total 36,400,000$ 18,988,833$ 6,000,000$ 11,411,168$ 9,854,494$ 1,556,674$ -$ -$

2017 Bond ReimbursementSRWRF Disinfection Conversion S0006 1,075,000$ 550,836$ 524,164$ -$ -$ -$ -$ -$ SRWRF Phased PLC Migration* S0001 800,000 461,735 150,000 188,266 36,628 151,638 - -

2017 Bond Reimbursement Total 1,875,000$ 1,012,571$ 674,164$ 188,266$ 36,628$ 151,638$ -$ -$

FY 2020-2021 Existing CIP Total 40,668,967$ 20,465,816$ 7,743,673$ 12,483,074$ 9,918,929$ 1,950,448$ 613,697$ -$

Repair and ReplacementTotal







Grit Classifier Replacement 150,000 - - 150,000 150,000 - - - Drain Line Manhole Construction 90,000 - - 90,000 60,000 30,000 - - Valve Replacement 25,000 - - 25,000 25,000 - - - Stairway Construction at SBR Building 80,000 - - 80,000 80,000 - - - Sewer Manhole Repair 30,000 - - 30,000 - - 30,000 - Pipeline Joint Repair 75,000 - - 75,000 - - 75,000 -

Repair and Replacement Total 450,000$ -$ -$ 450,000$ 315,000$ 30,000$ 105,000$ -$

450,000$ -$ -$ 450,000$ 315,000$ 30,000$ 105,000$ -$ FY 2020-2021 New CIP Total

Capital Cost Category Allocation

Santa Rosa Regional Resources AuthorityNew Capital Improvement Projects (CIP) Budget FY 2020-2021

Santa Rosa Regional Resources AuthorityExisting Capital Improvement Projects (CIP) Budget FY 2020-2021


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Capital EquipmentTotal







SBR Scrubber (1-6) Media Replacement 50,000 - - 50,000 50,000 - - - SCADA UPS Replacement 7,000 - - 7,000 7,000 - - - SCADA UPS Replacement 1,000 - - 1,000 - - 1,000 - SCADA UPS Replacement 2,000 - - 2,000 - 2,000 - - Cal Oak Lift Stations Spare Pump 25,000 - - 25,000 - - 25,000 - Manhole Meter Transmitters (7) 22,000 - - 22,000 - - 22,000 -

107,000$ -$ -$ 107,000$ 57,000$ 2,000$ 48,000$ -$

107,000$ -$ -$ 107,000$ 57,000$ 2,000$ 48,000$ -$

Total Existing CIP Capital Replacement Contribution 883,640$ Total New CIP Capital Replacement Contribution 450,000 Total Capital Equipment 107,000 Total Capital Replacement Contribution (FY 20-21) 1,440,640$

* Total rehabilitation cost includes Job # S0001, PLC Migration for $800,000 for a total rehabilitation cost of 37,200,000

FY 2020-2021 Capital Equipment Total

Santa Rosa Regional Resources AuthorityCapital Equipment Budget FY 2020-2021

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4.c

RESOLUTION NO. SRRRA-2020-4-Draft

RESOLUTION OF THE BOARD OF DIRECTORS OF THE SANTA ROSA REGIONAL RESOURCES AUTHORITY

ADOPTING 2020-2021 AUTHORITY BUDGETS

WHEREAS, Sections 3.1, 3.2, and 3.3 of the Joint Exercise of Powers Agreement Creating the Santa Rosa Regional Resources Authority requires the Board of Directors of the Santa Rosa Regional Resources Authority (the “Authority”) to annually adopt Operating, Non-Operating, and Capital Projects Budgets, respectively; and

WHEREAS, Authority staff has prepared for the fiscal year commencing on July

1, 2020 and ending June 30, 2021 the draft Operating, Non-Operating, and Capital Projects Budgets that set forth guidelines for expending Authority funds for that fiscal year; and

WHEREAS, the Authority’s Executive Advisory Committee has reviewed and

considered the draft budgets for the Authority for the 2020-2021 fiscal year; and WHEREAS, the Authority’s Executive Advisory Committee recommended to

the Authority’s Board of Directors the approval of: (1) an Operating Budget in the form presented to the Executive Advisory Committee setting forth total budgeted expenditures of $4,978,695, with related contributions from the Authority’s member agencies to fully pay those expenditures, initially based upon Calendar Year 2019 actual flow from the member agencies’ respective jurisdictions to the Authority’s Santa Rosa Water Reclamation Facility (SRWRF), but subject to proportionate adjustment among the member agencies after the end of fiscal year 2020-2021, once actual flows from the member agencies’ respective jurisdictions to the SRWRF for the period of July 1, 2020 through June 30, 2021 are known and determined; (2) a Non-Operating Budget in the form presented to the Executive Advisory Committee setting forth total budgeted expenditures of $18,380,165, with financing sources covering $11,599,434 of the Non-Operating Budget for a net Non-Operating Budget of $6,780,731, with related contributions from the Authority’s member agencies to fully pay those expenditures; and (3) a Capital Projects Budget, included as part of the Non-Operating Budget, in the form presented to the Executive Advisory Committee authorizing total budgeted expenditures of $450,000 for new capital improvement projects and $107,000 for Capital Equipment and setting forth total budgeted expenditures for previously authorized projects of $12,483,074, with member agency contributions of $883,640, a State Revolving Fund Loan paying for $11,411,168 and the 2017AB Bond proceeds paying for $188,266 of those expenditures; (4) the annual fee to Rancho California Water District for Administration and Operation Services, as included in the Operating Budget, in a total amount of $2,625,476; and

WHEREAS, the Authority’s Board of Directors has reviewed the draft

Operating, Non-Operating, and Capital Projects Budgets and the recommendations of the Executive Advisory Committee, and determined that it is in the best interest of the Authority that said budgets be approved.

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[Resolution No. SRRRA-2020-4-Draft] 2

NOW THEREFORE, the Board of Directors of the Santa Rosa Regional Resources Authority hereby resolves and approves the budgets for the Authority’s 2020-2021 fiscal year, in the budget document presented and outlined hereto as follows:

(1) The Operating Budget setting forth total budgeted expenditures of

$4,978,695, with related contributions from the Authority’s member agencies to fully pay those expenditures, initially based upon Calendar Year 2019 actual flow from the member agencies’ respective jurisdictions to the SRWRF, but subject to proportionate adjustment among the member agencies after the end of fiscal year 2020-2021, once actual flows from the member agencies’ respective jurisdictions to the SRWRF for the period of July 1, 2020 through June 30, 2021 are known and determined; and

(2) The Non-Operating Budget setting forth total budgeted expenditures of

$18,380,165, of which $11,599,434 will be paid with financing for a net reimbursable Non-Operating Budget of $6,780,731, with related contributions from the Authority’s member agencies to fully pay those expenditures; and

(3) The Capital Projects Budget, included as part of the Non-Operating Budget,

authorizing $450,000 in new capital improvement project expenditures; and (4) The Capital Equipment Budget, included as part of the Non-Operating

Budget, authorizing $107,000 in new capital equipment expenditures; and (5) The annual fee to Rancho California Water District for Administration and

Operation Services, as included in the Operating Budget, in a total amount of $2,625,476.

ADOPTED, SIGNED, and APPROVED, at the Regular Meeting of the Board of Directors of the Authority this 14th day of April 2020.


John V. Rossi, Chair ATTEST:

Richard R. Aragon, Secretary-Treasurer

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Fiscal Year 2020-2021Operating & Non-Operating Budgets Draft

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1

Table of Contents Santa Rosa Regional Resources Authority ..................................................................................................................... 2

Government ................................................................................................................................................................. 3

Executive Advisory Committee ...................................................................................................................................... 3

Authority Administrator ............................................................................................................................................... 4

Organizational Chart .................................................................................................................................................... 4

Services........................................................................................................................................................................... 5

Collection ..................................................................................................................................................................... 5

Treatment .................................................................................................................................................................... 5

General Operating Budget .............................................................................................................................................. 6

Non- Operating Budget ................................................................................................................................................ 6

Capital Projects/Equipment Budget .............................................................................................................................. 7

Debt Budget ................................................................................................................................................................. 7

Cash Reserve Policy ...................................................................................................................................................... 7

Table of Figures Operating Budget

Table 1- Budget Statement & YTY Comparison .................................................................................................................................................. 8

Table 2 - Member Agency Contribution Allocation ........................................................................................................................................... 9

Figure 1 - Fiscal Year 2020-2021 Operating Expense Allocation Matrix…..……………………………………………….………..………7


Table 3 - Budget Statement ........................................................................................................................................................................................ 10

Table 4 - Member Agency Contribution Allocation ......................................................................................................................................... 11

Figure 2 - Capital and Debt Expense Allocation Matrix……………………………………………………………………………………………..7

Capital Projects Budget

Table 5 - Existing/New CIP Budget FY 2020-2021 .......................................................................................................................................... 12

Table 6 - CIP Cost Allocation FY 2020-2021 ....................................................................................................................................................... 14

Debt Budget

Table 7 - 2017AB Bond Debt Service Allocation ............................................................................................................................................... 14

Supplement Schedule

Table 8 - RCWD Fee Components FY 2020-2021 .............................................................................................................................................. 15

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About Us

Santa Rosa Regional Resources Authority The Santa Rosa Regional Resources Authority (SRRRA/Authority) is a Joint Powers Authority (JPA) formed by Elsinore Valley Municipal Water District (Elsinore), Rancho California Water District (Rancho), and Western Municipal Water District (Western) on November 12, 2015 to be responsible for the collection, transmission, treatment, and disposal of wastewater from its member agencies relating to flows to the Santa Rosa Water Reclamation Facility (SRWRF/Treatment Plant/Plant) in Murrieta, California. This responsibility includes the acquisition, construction, and financing of capital improvement projects for the SRWRF. The Authority’s service area encompasses all three districts, yet focuses on the areas delivering flows to the SRWRF, which is the SRRRA’s sole Treatment Plant. The SRWRF was formerly owned and operated by Rancho, but was purchased from Rancho with a debt issuance by the SRRRA in August of 2017. Rancho continues to operate the the SRWRF and is also the administrator for the SRRRA. The SRRRA is located in the southwestern part of Riverside County, which includes portions of the cities of Temecula, Murrieta, Wildomar, and other contiguous land in the unincorporated territory of the County of Riverside.

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Government The SRRRA is governed by equal vote by a three-member Board of Directors (Board) who are appointed by their respective agencies, with a member and alternate member representing each district.

Rancho

John V. Rossi, Chair

Alternate – Director Danny Martin

Western

Brenda Dennstedt, Vice-Chair

Alternate – Director S.R. “Al” Lopez

Elsinore

Andy Morris, Director

Alternate – Director Phil Williams Executive Advisory Committee The SRRRA Executive Advisory Committee is made up of the general managers, or designees of each general manager of the member agencies of the SRRRA. The Executive Advisory Committee functions to provide advice and recommendations to the Board.

Rancho

Jeff D. Armstrong, General Manager

Alternate – Eva Plazjer, AGM–Engineering & Operations

Western

Craig Miller, General Manager

Alternate(s) – Rod LeMond, AGM–CFO or Derek Kawaii, Director of Engineering

Elsinore

Greg Thomas, General Manager

Alternate – Margie Armstrong, Director of Strategic Programs

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Authority Administrator Pursuant to the Administration, Management, Operation, and Maintenance Agreement between the SRRRA and Rancho, Rancho serves as the Administrator and Operator of the SRWRF. Rancho has designated its Assistant General Manager–CFO/Treasurer Richard Aragon, as Administrator. Additionally, the SRRRA Board appointed Mr. Aragon as the Secretary-Treasurer. Organizational Chart

Executive Advisory Commitee

Board of Directors

Administrator/Secretary-Treasurer General Counsel

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Services The SRWRF is located in the City of Murrieta. The Plant is responsible for collecting, treating, and safely disposing of, or recycling wastewater and its residuals for residents and businesses in the cities of Temecula, Murrieta, and Wildomar. The Authority’s infrastructure includes the SRWRF, as well as any manhole, gravity main, force main, or lift station, which conveys wastewater flows from two or more of the following Districts: Western, Rancho, and Elsinore. Collection Wastewater originating from homes and businesses in the Plant’s service area flows into a system of pipes that convey the water to the Treatment Plant. The system handles flows from the cities of Temecula, Murrieta, and Wildomar. This system of pipes is referred to as the “collection system.” The collection system consists of 80 miles of pipes that range from 8 and up to 24 inches in diameter. Most of the system flows by gravity to lift stations that raise the water to a higher level so that it can continue its journey to the reclamation facility. The system contains three lift stations. Treatment Wastewater flows originating in the Authority’s service area are treated at the SRWRF. The Treatment Plant was constructed in 1989; it is a sequencing-batch reactor treatment facility with a secondary and tertiary treatment capacity of 5 million gallons per day (mgd). The SRWRF uses a biological treatment process followed by chemical clarification, filtration, and disinfection to prepare the water for reuse. Laboratory tests are conducted daily to ensure that the water meets the state’s standards for reclaimed water. The Plant’s reclaimed water customers use virtually all of the treated water. On average, the Plant treats approximately 1 billion gallons of wastewater annually.

The construction phase of the $38 million plant rehabilitation project began in FY 2018-2019. The rehabilitation project will significantly extend the useful life of the plant and improve energy efficiency while continuing to utilize the sequencing batch reactor treatment process. The SRRRA obtained a loan from the State Revolving Fund in FY 2017-2018 to fully finance the cost of the rehabilitation project. The project’s anticipated completion is FY 2021-2022.

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General Operating Budget The Operating Budget is an operating outline for the purpose of establishing rates and/or contributions to be billed to and paid by the member agencies for each available type of service provided. In previous years, the operating rates and/or contributions to be billed to and paid by each member agency were based upon Equivalent Dwelling Units (EDUs), as of January 1 of each year. The installation of a Permanent Flow Monitoring System (Flow Monitoring) was completed in December of 2018, allowing for flow measurements to begin in January of 2019. Flow Monitoring provides actual wastewater flow data for each member agency, which offers the most accurate measurement for allocating operating costs among the three-member agencies. The FY 2020-2021 Operating Budget allocations are based actual flows for Calendar Year 2019 but subject to a proportionate adjustment among the member agencies once actual flow from the member agencies are known for the period of July 1, 2020 through June 30, 2021. The resulting operating cost allocations are set forth in Figure 1.

Figure 1- Operating Expense Allocation Matrix

Operating Expense Allocation Matrix per JPA Agreement Section 3.1 Member Agency Cost Share % (based on flows)

Functional Category EVMWD RCWD WMWD Primary/Secondary 32.5% 39.6% 27.9%

Collections 32.5% 39.6% 27.9% Tertiary Treatment 32.5% 67.5% 0.0%

Non- Operating Budget The Non-Operating Budget is a non-operating outline of debt service, capital, and other non-operating expenditures for the purpose of establishing rates and/or contributions to be billed to and paid by the member agencies for each available type of service provided. These contributions are based upon the proportionate amount of ultimate capacity in the relevant service type applicable to each member agency, as set forth in Figure 2.

Figure 2 - Capital and Debt Expense Allocation Matrix

Capital and Debt Expense Allocation Matrix per JPA Agreement Section 5.1 Member Agency

Primary & Secondary Treatment Tertiary Treatment Trunk Sewer

Based on ultimate flow/capacity requirements

Based on ultimate recycled water amounts

Based on engineering analysis

Elsinore 40% - 2.0 MGD 40% - 2.0 MGD 43.57% Rancho 40% - 2.0 MGD 60% - 3.0 MGD 36.61% Western 20% - 1.0 MGD 0% - 0.0 MGD 19.82%

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Capital Projects/Equipment Budget The Capital Projects/Equipment Budget outlines the revenue requirements for projects approved by the SRRRA Board for major repair, replacement, and efficiency enhancement of the facilities as well as equipment (tools, spare parts, etc.) needed for the facility. It also establishes the contribution amounts to be paid by the member agencies for those capital improvement projects and equipment. These contributions are based upon the proportionate amount of ultimate capacity in the relevant service type applicable to each member agency, as set forth in Figure 2. Debt Budget The Debt Budget outlines the revenue requirements for the debt service portion of the Non-Operating Budget. The SRRRA issued bonds in August 2017 to purchase the SRWRF from Rancho and to finance certain improvements to the Plant. See Table 7 for the debt service allocation for the SRRRA 2017AB Bonds (Bonds). The Bonds were issued per the SRRRA’s Debt Management Policy, which was adopted on June 13, 2017. A copy of the Debt Management Policy is available on the SRRRA website at www.srrra-jpa.org/35/documents. Cash Reserve Policy In addition to the Debt Management Policy, the SRRRA also adopted a Cash Reserve Policy on October 16, 2017. The Cash Reserve Policy established four reserves, as follows:

1. The Operating Reserve Fund provides sufficient liquidity as working capital to fund operating expenses.

2. The Debt Service Reserve Fund mitigates the risk of non-payment on SRRRA’s debt service obligations, due to temporary delays in payment from the member agencies, as well as meeting applicable debt reserve legal requirements.

3. The Capital Project Reserve Fund – Working Capital provides sufficient working capital for authorized capital expenditures.

4. The Capital Project Reserve Fund – Rate Stabilization facilitates a more level collection and utilization of funds from member-agency contributions for compliance with minimum debt-service coverage requirements.

More details and information on the reserve funds can be found in the Cash Reserve Policy available on the SRRRA website at www.srrra-jpa.org/35/documents.

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http://www.srrra-jpa.org/35/documents

http://www.srrra-jpa.org/35/documents

8

Table 1- Budget Statement & YTY Comparison

SRRRA Operating Budget FY 2020-2021 Budget Statement & YTY Comparison

Operating Budget 2020/2021 2019/2020Primary & Secondary Treatment: $ % RCWD - Admin & Operations Fee 1,624,210$ 1,657,543$ (33,333)$ -2.0% Materials & Supplies 125,072 119,340 5,732 4.8% Utilities 845,177 826,906 18,271 2.2% Outside Services 504,292 454,292 50,000 11.0% Corrective Maintenance - Materials - - - 0.0% Corrective Maintenance - Outside Service 15,242 22,500 (7,258) -32.3%

Vehicle Use Charge1 6,668 - 6,668 0.0%Total Primary & Secondary Treatment 3,120,661$ 3,080,581$ 40,080$ 1.3%

Collections System: RCWD - Admin & Operations Fee 171,662$ 165,533$ 6,129$ 3.7% Materials & Supplies 1,080 1,080 - 0.0% Utilities 6,747 6,550 197 3.0% Outside Services 106,495 120,716 (14,221) -11.8% Corrective Maintenance - Materials - - - 0.0% Corrective Maintenance - Outside Service 5,000 5,000 - 0.0%

Vehicle Use Charge1 4,956 - 4,956 0.0%Total Collections System 295,941$ 298,879$ (2,939)$ -1.0%

Tertiary Treatment: RCWD - Admin & Operations Fee 657,444$ 664,901$ (7,458)$ -1.1% Materials & Supplies 323,330 216,075 107,255 49.6% Utilities 150,165 146,997 3,168 2.2% Outside Services 144,408 165,896 (21,488) -13.0% Corrective Maintenance - Materials - - - 0.0% Corrective Maintenance - Outside Service 15,242 22,500 (7,258) -32.3%

Vehicle Use Charge1 - - - 0.0%Total Tertiary Treatment 1,290,588$ 1,216,369$ 74,219$ 6.1%

JPA Administration: RCWD - Admin & Operations Fee 172,160$ 202,739$ (30,579)$ -15.1% Legal 16,000 15,000 1,000 6.7% Audit 12,375 11,000 1,375 12.5%

Insurance 46,856 50,000 (3,144) -6.3% Other 24,113 50,939 (26,826) -52.7%Total JPA Administration 271,505$ 329,678$ (58,173)$ -17.6%

Total Operating Budget 4,978,695$ 4,925,507$ 53,187$ 1.08%1 Vehicle Use Charge includes annual depreciation cost and 2.1% interest rate.

Difference

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Table 2 - Member Agency Contribution Allocation

SRRRA Operating Budget FY 2020-2021 Member Agency Contribution Allocation

Cost Share % EVMWD RCWD WMWD TotalPrimary/Secondary Treatment 32.5% 39.6% 27.9% 100.0%Collections System 32.5% 39.6% 27.9% 100.0%Tertiary Treatment 32.5% 67.5% 0.0% 100.0%

Cost Share $ EVMWD RCWD WMWD TotalPrimary/Secondary Treatment 1,103,848$ 1,341,678$ 946,640$ 3,392,166$ Collections System 96,302 117,051 82,587 295,941 Tertiary Treatment 419,971 870,617 - 1,290,588 Annual Cost Share Total 1,620,121$ 2,329,346$ 1,029,227$ 4,978,695$

Less Operating Reserve Credit2 -$ -$ -$ -$ Net Annual Cost Share Total 1,620,121$ 2,329,346$ 1,029,227$ 4,978,695$

Net Cost Share per Month 135,010$ 194,112$ 85,769$ 414,891$

This was approved by the Board at the October 8, 2019 Board meeting.

Member Agency1

Member Agency

1 Member Agency cost share percentages based on CY 2019 flow monitoring.2 FY 2018/2019 Operating Reserve Credit was applied towards each member agency's FY 19/20 Budget.

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10

Table 3 - Budget Statement

SRRRA Non-Operating Budget FY 2020-2021 Budget Statement

Non-Operating Expenses TotalDebt Service Contributions

Capital Replacement Contributions*

SRF Loan Reimbursement

2017 Bond Reimbursement

Primary & Secondary Treatment: Existing Debt Service 3,033,589$ 3,033,589$ -$ -$ -$ Pay-go Capital - New Projects 315,000 - 315,000 - - Pay-go Capital - Existing Projects* 9,918,929 - 27,807 9,854,494 36,628 Pay-go Capital - Capital Equipment 57,000 - 57,000 - - Total Primary & Secondary Treatment (FY 20-21) 13,324,518$ 3,033,589$ 399,807$ 9,854,494$ 36,628$

Prior Year Total (FY 19-20) 20,148,459 3,126,530 54,000 16,700,000 267,929 Year to Year Increase/(Decrease) (6,823,941)$ (92,941)$ 345,807$ (6,845,506)$ (231,301)$

Tertiary Treatment: Existing Debt Service 436,250$ 436,250$ -$ -$ -$ Pay-go Capital - New Projects 30,000 - 30,000 - - Pay-go Capital - Existing Projects* 1,950,448 - 242,136 1,556,674 151,638 Pay-go Capital - Capital Equipment 2,000 - 2,000 - - Total Tertiary Treatment (FY 20-21) 2,418,698$ 436,250$ 274,136$ 1,556,674$ 151,638$

Prior Year Total (FY 19-20) 3,252,464 448,462 125,000 1,650,000 1,029,002 Year to Year Increase/(Decrease) (833,765)$ (12,212)$ 149,136$ (93,326)$ (877,364)$

Collections System: Existing Debt Service 1,870,251$ 1,870,251$ -$ -$ -$ Pay-go Capital - New Projects 105,000 - 105,000 - - Pay-go Capital - Existing Projects* 613,697 - 613,697 - - Pay-go Capital - Capital Equipment 48,000 - 48,000 - - Total Collections System (FY 20-21) 2,636,948$ 1,870,251$ 766,697$ -$ -$

Prior Year Total (FY 19-20) 2,679,505 1,927,748 751,757 - - Year to Year Increase/(Decrease) (42,557)$ (57,498)$ 14,940$ -$ -$

Total Non-Operating Budget (FY 20-21) 18,380,165$ 5,340,091$ 1,440,640$ 11,411,168$ 188,266$ Prior Year Total (FY 19-20) 26,080,428 5,502,741 930,757 18,350,000 1,296,930 Year to Year Increase/(Decrease) (7,700,263)$ (162,650)$ 509,883$ (6,938,832)$ (1,108,664)$

Total Non-Operating By Category Existing Debt Service 5,340,091$ Pay-go Capital - New Projects 450,000 Pay-go Capital - Existing Projects* 883,640 Pay-go Capital - Financed Projects* 11,599,434 Pay-go Capital - Capital Equipment 107,000 Total Non-Operating Budget 18,380,165$

Less SRF Reimbursable Projects (11,411,168)$ Less 2017 Bond Reimbursable Projects (188,266)

Total Non-Operating Contributions Required 6,780,731$


Source of Funds

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11

Table 4 - Member Agency Contribution Allocation

SRRRA Non-Operating Budget FY 2020-2021 Member Agency Contribution Allocation


Cost Share $ EVMWD RCWD WMWD TotalPrimary/Secondary Treatment 1,213,436$ 1,213,436$ 606,718$ 3,033,589$ Tertiary Treatment 174,500 261,750 - 436,250 Collections System 814,868 684,699 370,684 1,870,251 Annual Cost Share (FY 20-21) 2,202,804$ 2,159,885$ 977,402$ 5,340,091$ Prior Year Annual Cost Share (FY 19-20) 2,269,917 2,225,438 1,007,386 5,502,741 Year to Year Increase/(Decrease) (67,113)$ (65,553)$ (29,984)$ (162,650)$

Cost Share $Primary/Secondary Treatment 159,923$ 159,923$ 79,961$ 399,807$ Tertiary Treatment 109,654 164,482 - 274,136 Collections System 334,050 280,688 151,959 766,697 Annual Cost Share (FY 20-21) 603,627$ 605,092$ 231,921$ 1,440,640$ Prior Year Annual Cost Share (FY 19-20) 399,140 371,818 159,798 930,757 Year to Year Increase/(Decrease) 204,487$ 233,274$ 72,123$ 509,883$

Annual Member Agency Contribution (FY 20-21) 2,806,431$ 2,764,977$ 1,209,322$ 6,780,731$ PY Annual Member Agency Contribution (FY 19-20) 2,669,057 2,597,256 1,167,184 6,433,497 Year to Year Increase/(Decrease) 137,374$ 167,721$ 42,138$ 347,233$

Capital Replacement Funds

Member Agency


Total Allocation

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12

Table 5 - Existing/New CIP Budget FY 2020-2021

Santa Rosa Regional Resources Authority Existing Capital Improvement Projects (CIP) Budget FY 2020-2021

Santa Rosa Regional Resources Authority New Capital Improvement Projects (CIP) Budget FY 2020-2021

Capital Replacement ContributionTotal

AuthorizedTotal Projected FY 20-

21 ExpendituresPrimary/Secondar

y TreatmentTertiary

Treatment Collections


Sewer Collection Repairs 500,000$ 259,785$ $ - $ - $ 259,785 $ - Sewer Facilities Master Plan 33,509 33,509 - - 33,509 - Temporary Flow Monitoring 165,400 25,000 - - 25,000 - SRWRF Disinfection Conversion 945,000 - - - - - Drying Bed 5 Conversion 175,000 133,754 - 133,754 - - AWT Facility Assessment 125,000 108,382 - 108,382 - - Rehabilitate Flow Diversions 100,000 98,561 - - 98,561 - Pipeline Joint Repair 75,000 74,782 - - 74,782 - Permanent Flow Monitoring 120,000 14,760 - - 14,760 - Pretreatment Program Local Limits 37,807 27,807 27,807 - - - Sewer Manhole Repair 30,000 20,050 - - 20,050 - Pipeline Joint Repair 75,000 75,000 - - 75,000 - Slurry Seal (Cal Oaks Lift Station) 4,250 4,250 - - 4,250 - Paint (Cal Oaks Lift Station) 8,000 8,000 - - 8,000 -

Capital Replacement Contribution Total 2,393,967$ 883,640$ 27,807$ 242,136$ 613,697$ -$

SRF Loan ReimbursementSRWRF Rehabilitation* 36,400,000$ 11,411,168$ 9,854,494$ 1,556,674$ -$ -$

SRF Loan Reimbursement Total 36,400,000$ 11,411,168$ 9,854,494$ 1,556,674$ -$ -$

2017 Bond ReimbursementSRWRF Disinfection Conversion 1,075,000$ -$ -$ -$ -$ -$ SRWRF Phased PLC Migration* 800,000 188,266 36,628 151,638 - -

2017 Bond Reimbursement Total 1,875,000$ 188,266$ 36,628$ 151,638$ -$ -$

FY 2020-2021 Existing CIP Total 40,668,967$ 12,483,074$ 9,918,929$ 1,950,448$ 613,697$ -$


Repair and ReplacementTotal



y TreatmentTertiary



Grit Classifier Replacement 150,000 150,000 150,000 - - - Drain Line Manhole Construction 90,000 90,000 60,000 30,000 - - Valve Replacement 25,000 25,000 25,000 - - - Stairway Construction at SBR Building 80,000 80,000 80,000 - - - Sewer Manhole Repair 30,000 30,000 - - 30,000 - Pipeline Joint Repair 75,000 75,000 - - 75,000 -

Repair and Replacement Total 450,000$ 450,000$ 315,000$ 30,000$ 105,000$ -$

450,000$ 450,000$ 315,000$ 30,000$ 105,000$ -$ FY 2020-2021 New CIP Total


4.e

13


Capital Equipment Budget FY 2020-2021

Capital EquipmentTotal



y TreatmentTertiary



SBR Scrubber (1-6) Media Replacement 50,000 50,000 50,000 - - - SCADA UPS Replacement 7,000 7,000 7,000 - - - SCADA UPS Replacement 1,000 1,000 - - 1,000 - SCADA UPS Replacement 2,000 2,000 - 2,000 - - Cal Oak Lift Stations Spare Pump 25,000 25,000 - - 25,000 - Manhole Meter Transmitters (7) 22,000 22,000 - - 22,000 -

107,000$ 107,000$ 57,000$ 2,000$ 48,000$ -$

107,000$ 107,000$ 57,000$ 2,000$ 48,000$ -$

Total Existing CIP Capital Replacement Contribution 883,640$ Total New CIP Capital Replacement Contribution 450,000 Total Capital Equipment 107,000 Total Capital Replacement Contribution (FY 20-21) 1,440,640$

* Total rehabilitation cost includes Job # S0001, PLC Migration for $800,000 for a total rehabilitation cost of 37,200,000

FY 2020-2021 Capital Equipment Total


4.e

14

Table 6 - CIP Cost Allocation FY 2020-2021

Santa Rosa Regional Resources Authority Non-Operating Cost Allocation FY 2020-2021


Cost Share $ EVMWD RCWD WMWD TotalPrimary/Secondary Treatment 1,213,436$ 1,213,436$ 606,718$ 3,033,589$ Tertiary Treatment 174,500 261,750 - 436,250 Collections System 814,868 684,699 370,684 1,870,251 Annual Cost Share Total 2,202,804$ 2,159,885$ 977,402$ 5,340,091$

Cost Share $ EVMWD RCWD WMWD TotalPrimary/Secondary Treatment 159,923$ 159,923$ 79,961$ 399,807$ Tertiary Treatment 109,654 164,482 - 274,136 Collections System 334,050 280,688 151,959 766,697 Annual Cost Share Total 603,627$ 605,092$ 231,921$ 1,440,640$

Total Member Agency Contribution 2,806,431$ 2,764,977$ 1,209,322$ 6,780,731$



Capital Replacement Funds*

Member AgencyFY 2020-2021

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14

Table 7 - 2017AB Bond Debt Service Allocation

Santa Rosa Regional Resources Authority 2017AB Bond Debt Service Allocation


2/1/2021 - 323,541 323,541 - 320,429 320,429 - 140,950 140,950 784,920 8/1/2021 1,574,173 323,541 1,897,714 1,537,237 320,429 1,857,666 703,590 140,950 844,540 4,599,920 2/1/2022 - 300,622 300,622 - 298,048 298,048 - 130,706 130,706 729,375 8/1/2022 1,116,156 300,622 1,416,778 1,089,968 298,048 1,388,015 498,876 130,706 629,582 3,434,375 2/1/2023 - 283,312 283,312 - 281,144 281,144 - 122,969 122,969 687,425 8/1/2023 1,093,462 283,312 1,376,774 1,067,806 281,144 1,348,950 488,732 122,969 611,702 3,337,425 2/1/2024 - 265,408 265,408 - 263,660 263,660 - 114,967 114,967 644,035 8/1/2024 1,128,535 265,408 1,393,943 1,102,056 263,660 1,365,716 504,409 114,967 619,376 3,379,035 2/1/2025 - 246,339 246,339 - 245,039 245,039 - 106,444 106,444 597,822 8/1/2025 1,138,851 246,339 1,385,190 1,112,130 245,039 1,357,168 509,019 106,444 615,464 3,357,822 2/1/2026 - 226,447 226,447 - 225,613 225,613 - 97,553 97,553 549,612 8/1/2026 1,149,167 226,447 1,375,613 1,122,203 225,613 1,347,816 513,630 97,553 611,183 3,334,612 2/1/2027 - 205,887 205,887 - 205,536 205,536 - 88,364 88,364 499,787 8/1/2027 1,159,040 205,887 1,364,928 1,137,695 205,536 1,343,231 513,264 88,364 601,628 3,309,787 2/1/2028 - 186,467 186,467 - 186,455 186,455 - 79,779 79,779 452,701 8/1/2028 1,199,798 186,467 1,386,265 1,184,182 186,455 1,370,637 526,019 79,779 605,799 3,362,701 2/1/2029 - 163,693 163,693 - 163,902 163,902 - 69,856 69,856 397,451 8/1/2029 1,246,871 163,693 1,410,565 1,235,166 163,902 1,399,067 542,963 69,856 612,819 3,422,451 2/1/2030 - 139,077 139,077 - 139,424 139,424 - 59,212 59,212 337,714 8/1/2030 1,291,651 139,077 1,430,729 1,341,575 139,424 1,480,999 511,774 59,212 570,986 3,482,714 2/1/2031 - 115,198 115,198 - 114,501 114,501 - 49,850 49,850 279,550 8/1/2031 1,343,230 115,198 1,458,428 1,391,943 114,501 1,506,444 534,827 49,850 584,678 3,549,550 2/1/2032 - 87,745 87,745 - 85,686 85,686 - 39,218 39,218 212,650 8/1/2032 1,537,036 87,745 1,624,781 1,500,972 85,686 1,586,658 686,992 39,218 726,210 3,937,650 2/1/2033 - 57,004 57,004 - 55,667 55,667 - 25,479 25,479 138,150 8/1/2033 1,642,256 57,004 1,699,261 1,603,723 55,667 1,659,390 734,021 25,479 759,499 4,118,150 2/1/2034 - 32,371 32,371 - 31,611 31,611 - 14,468 14,468 78,450 8/1/2034 2,158,040 32,371 2,190,411 2,107,405 31,611 2,139,016 964,555 14,468 979,023 5,308,450

18,778,267 5,266,224 24,044,491 18,534,060 5,233,429 23,767,488 8,232,673 2,279,635 10,512,308 58,324,288

WMWDEVMWD RCWDDate

Total 2017 A&B Total Debt Service BreakdownTotal 2017 A&B Debt Service by Member Agency

4.e

15

Table 8 - RCWD Fee Components FY 2020-2021

Santa Rosa Regional Resources Authority RCWD Fee Components FY 2020-2021

Operating Budget 2020/21 2019/20Primary & Secondary: $ %Operations Direct Treatment Plant Labor 450,303$ 468,593$ (18,290)$ -3.9% Direct Labor- Benefits 373,307 381,063 (7,756) -2.0% Plant Supervision & Operations Administrative Support 95,127 94,191 936 1.0% G&A Overhead (IT, HR, Finance, Administration) 514,627 528,714 (14,087) -2.7% Vehicle Maintenance 34,904 39,786 (4,882) -12.3% G&A Direct Support (Legal, Safety Program) 142,086 130,338 11,747 9.0% Direct Labor - Engineering Support 13,856 11,972 1,885 15.7%Total Operations 1,624,210$ 1,654,657$ (30,447)$ -1.8%

Corrective Maintenance

Corrective Maintenance - Direct Labor -$ 850$ (850)$ -100.0% Corrective Labor- Benefits - 733 (733) -100.0% Plant Supervision & Operations Administrative Support - 186 (186) -100.0% G&A Overhead (IT, HR, Finance, Administration) - 1,040 (1,040) -100.0% Vehicle Maintenance - 77 (77) -100.0%Total Corrective Maintenance - 2,886 (2,886) -100.0%Total Primary & Secondary 1,624,210$ 1,657,543$ (33,333)$ -2.0%

Collections System:Operations Direct Collection System Labor 47,921$ 47,328$ 593$ 1.3% Direct Labor- Benefits 44,457 40,797 3,660 9.0% Plant Supervision & Operations Administrative Support 11,070 10,365 705 6.8% G&A Overhead (IT, HR, Finance, Administration) 61,287 57,882 3,405 5.9% Vehicle Maintenance 4,157 4,260 (103) -2.4% Direct Labor - Engineering Support 2,771 - 2,771 0.0%Total Operations 171,662$ 160,631$ 11,031$ 6.9%

Corrective Maintenance Corrective Maintenance - Direct Labor -$ 1,444$ (1,444)$ -100.0% Corrective Labor- Benefits - 1,245 (1,245) -100.0% Plant Supervision & Operations Administrative Support - 316 (316) -100.0% G&A Overhead (IT, HR, Finance, Administration) - 1,766 (1,766) -100.0% Vehicle Maintenance - 130 (130) -100.0%Total Corrective Maintenance - 4,902 (4,902) -100.0%Total Collections System 171,662$ 165,533$ 6,129$ 3.7%

Difference

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16

Table 8 – RCWD Fee Components FY 2020-2021 (Continued)

Santa Rosa Regional Resources Authority RCWD Fee Components FY 2020-2021 (Continued)

Tertiary Treatment: Direct Tertiary System Labor 189,548$ 193,458$ (3,910)$ -2.0% Direct Labor- Benefits 169,879 168,137 1,742 1.0% Plant Supervision & Operations Administrative Support 43,786 42,717 1,069 2.5% G&A Overhead (IT, HR, Finance, Administration) 234,190 238,552 (4,362) -1.8% Vehicle Maintenance 15,884 17,555 (1,671) -9.5% Direct Labor - Engineering Support 4,157 1,596 2,561 160.4%Total Operations 657,444$ 662,015$ (4,572)$ -0.7%

Corrective Maintenance Corrective Labor -$ 850$ (850)$ -100.0% Corrective Labor- Benefits - 733 (733) -100.0% Plant Supervision & Operations Administrative Support - 186 (186) -100.0% G&A Overhead (IT, HR, Finance, Administration) - 1,040 (1,040) -100.0% Vehicle Maintenance - 77 (77) -100.0%Total Corrective Maintenance - 2,886 (2,886) -100.0%Total Tertiary Treatment 657,444$ 664,901$ (7,458)$ -1.1%

JPA Administration Direct Administrative Labor 55,788$ 67,869$ (12,082)$ -17.8% Admin Labor- Benefits 48,926 57,757 (8,831) -15.3% G&A Overhead (IT, HR, Finance, Administration) 67,447 77,113 (9,666) -12.5%Total JPA Administration 172,160$ 202,739$ (30,579)$ -15.1%

Total RCWD Fee 2,625,476$ 2,690,716$ (65,240)$ -2.4%

4.e


INFORMATION ITEM


ITEM 5: UPDATE ON CAPITAL PROJECTS


Engineering Manager-CIP & Dev, Jake Wiley

RECOMMENDATION:

This item is presented for the Board of Directors’ (Board) information.

DISCUSSION:

Staff will provide the Board with a verbal update on construction progress and other

relevant issues relating to the current capital projects list.

ALTERNATIVES:

Not applicable

FISCAL ANALYSIS:

Not applicable


Not applicable


5

SANTA ROSA REGIONAL RESOURCES AUTHORITY ACTION ITEM


ITEM 6: CONSIDER APPROVAL OF FINANCIAL STATEMENTS - DECEMBER 2019



RECOMMENDATION:

The Executive Advisory Committee recommends the Board of Directors (Board) approve

the aforementioned financial statements, as presented.

DISCUSSION:

Included herewith for the Board’s review and approval is a summary of the financial

results, as of December 31, 2019.

ALTERNATIVES:

Not applicable

FISCAL ANALYSIS:

Not applicable


Not applicable


A. Financial Statements Review B. Financial Statements - December 31, 2019

Financial Statements Review DECEMBER 31, 2019


Following is a highlight summary of the Authority’s financial results as of December 31, 2019.

Operating Revenues: Actual treatment revenue is $2,340,664 and is right in line with budget. Revenue is based on a Member Agency contribution allocation for the fiscal year.

Net Operating Revenue: The Authority has a net operating revenue of $48,606 com-pared to a budgeted net deficit of $122,090.

-$100

$0

$100

$200

$300

$400

$500

July Sept Nov Jan Mar May

Actual

Prior Year

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Page 1

Annual Budget

Actual To Date

Net Difference

Primary & SecondaryRevenue 1,620,939$ 1,620,939$ - Expense (1,540,291) (1,530,086) 10,205

80,649 90,853 10,205 Collections

Revenue 142,061 142,061 - Expense (149,440) (106,020) 43,420

(7,378) 36,041 43,420 Tertiary

Revenue 577,665 577,665 - Expense (608,185) (484,773) 123,412

(30,520) 92,892 123,412

JPA Administration Expense (164,839) (171,180) (6,341) Net Operating Revenue (122,088)$ 48,606$ 170,695$

Net Operating Revenue - Budget to Actual Comparison

Primary/Secondary Costs are under budget by $10,205 or 0.7 percent due to the timing of outside services work which will be completed throughout the fiscal year.

Collections System Costs are under budget by $43,420 or 29.1 percent due to the timing of outside services work which will be completed throughout the fiscal year.

Tertiary Costs are under budget by $123,412 or 20.3 percent due to the postpone-ment of the conversion from chlorine gas to chlorine bleach which is expected to be in operation in July 2020.

Administration Costs are over budget by $6,341 or 3.8 percent.

Financial Statements Review (cont.) DECEMBER 31, 2019

Santa Rosa Regional Resources Authority Page 2

TOTAL UTILITY COSTS are over budget by $7,845 or 1.6 percent. Per the solar power pur-chase agreement with Sunpower, SRRRA pays 10.35 cents per kWh of energy generated which equates to 16 percent of total usage, as of December 2019.

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200

400

600

800

July Sept Nov Jan Mar May

Energy Usage

Solar Energy Generation

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December-19 YTDNet Energy Cost 67,865$ 482,397$ Net Energy Cost per kWh 0.11$ 0.14$

SRRRA Energy

Financial Statements Review (cont.) DECEMBER 31, 2019


NON-OPERATING REVENUE: Non-operating revenue consists of member contributions for debt service and replacement funds. Debt service is billed in accordance with exist-ing debt schedules. Replacement contributions are billed on a quarterly basis and are based on projected capital expenditures. The SRRRA has billed member agencies $563,307 or 61 percent of the annual replacement contributions and $786,669 or 14 per-cent of the annual debt service contributions, as of December 31, 2019.

NON-OPERATING EXPENSE: Depreciation and amortization, bond discount amortiza-tion, and SRF loan interest are not budgeted for but are included in non-operating ex-penses.

Page 3

EVMWD RCWD WMWD TotalPrimary/Secondary Treatment 1,250,612$ 1,250,612$ 625,306$ 3,126,530$ Tertiary Treatment 179,385 269,077 - 448,462 Collection System 839,920 705,749 382,080 1,927,749 Annual Cost Share Total 2,269,917$ 2,225,438$ 1,007,386$ 5,502,741$

Year-to-Date Contributions Billed 324,285 320,873 141,510 786,669 Percentage Billed 14% 14% 14% 14%Remaining to be Billed 1,945,632$ 1,904,565$ 865,876$ 4,716,072$

Non-Operating Cost Share Revenue - Debt Service

EVMWD RCWD WMWD TotalPrimary/Secondary Treatment 21,600$ 21,600$ 10,800$ 54,000$ Tertiary Treatment 50,000 75,000 - 125,000 Collection System 327,540 275,218 148,998 751,756 Annual Cost Share Total 399,140$ 371,818$ 159,798$ 930,756$

Year-to-Date Contributions Billed 201,501 305,527 56,280 563,307 Percentage Billed 50% 82% 35% 61%Remaining to be Billed 197,639$ 66,291$ 103,518$ 367,449$

Non-Operating Cost Share Revenue - Replacement

SANTA ROSA REGIONAL RESOURCES AUTHORITYSTATEMENT OF NET POSITION

AS OF DECEMBER 31, 2019CURRENT ASSETS-CASH:

Cash & Investments 2,519,714$ TOTAL CURRENT ASSETS-CASH 2,519,714

CURRENT ASSETS-OTHER:Accounts Receivable - Reserves held w/ RCWD 500,000 Accounts Receivable

Rancho 380,446 Elsinore 116,065 Western 65,409

Accrued Interest Receivable 61,070 Prepaid Expenses 21,761 Materials Inventory 35,795 TOTAL CURRENT ASSETS-OTHER 1,180,547

TOTAL CURRENT ASSETS 3,700,260

RESTRICTED ASSETS:Cash With Fiscal Agent 2,024,360 Cash Reserve for Debt Service 2,284,711 Cash Reserve for Replacement 6,536,325 Accounts Receivable - Member Contributions - TOTAL RESTRICTED ASSETS 10,845,397

PLANT ASSETS:Construction in Progress 17,375,320 Fixed Assets less Accm. Depr. (1)

Primary and Secondary Assets 22,507,097 Collections Assets 15,567,822

Tertiary Assets 6,034,044 TOTAL PLANT ASSETS 61,484,283

TOTAL ASSETS 76,029,940

CURRENT LIABILITIES:Accounts Payable 1,325,486 Accounts Payable - Due to Member Agencies 2 6,750,000 Unearned Revenue 686,972 Accrued Interest Payable 760,117 TOTAL CURRENT LIABILITIES 9,522,575

LONG TERM LIABILITIES:Bond Payable 51,311,781 Other Long Term Debt - SRF Loan Payable 12,693,215 TOTAL LONG TERM LIABILITIES 64,004,996

TOTAL LIABILITIES 73,527,570

NET POSITION:Contributed Capital - Prior Year 3,245,413 Current Year (743,043)

TOTAL NET POSITION 2,502,370$

(1) Annual budget for capital acquisitions is $14,000.(2) Cash flow deposit for SRF Loan project costs.

Page 1 of 6

OPERATING REVENUE:Wastewater Service Charges

Primary / Secondary 1,620,939$ Collections 142,061 Tertiary 577,665

TOTAL OPERATING REVENUE 2,340,664

OPERATING EXPENSE:PRIMARY & SECONDARY TREATMENT

Contract - Admin & Operations Expense 828,771 Materials & Supplies 46,789 Utilities 430,030 Outside Services 222,451 Corrective Maintenance 2,044

TOTAL PRIMARY & SECONDARY TREATMENT 1,530,086

COLLECTIONS SYSTEMContract - Admin & Operations Expense 82,767 Materials & Supplies 234 Utilities 2,972 Outside Services 20,047 Corrective Maintenance -

TOTAL COLLECTIONS SYSTEM 106,020

TERTIARY TREATMENTContract - Admin & Operations Expense 332,451 Materials & Supplies 13,474 Utilities 49,380 Outside Services 89,031 Corrective Maintenance 437

TOTAL TERTIARY TREATMENT 484,773

SANTA ROSA REGIONAL RESOURCES AUTHORITYSTATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITIONAS OF DECEMBER 31, 2019

Page 2 of 6

SANTA ROSA REGIONAL RESOURCES AUTHORITYSTATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITIONAS OF DECEMBER 31, 2019

JPA ADMINISTRATIONContract - Admin & Operations Expense 101,370 Legal 3,899 Audit 11,000 Administration Expense 54,912

TOTAL JPA ADMINISTRATION 171,180

TOTAL OPERATING EXPENSE 2,292,058

NET OPERATING REVENUE 48,606

NON-OPERATING REVENUE:Interest Revenue 141,734 Other Income - Debt Service 786,669 Other Income - Replacement Fund 563,307 Other Income - Solar 23,715 Gain / Loss Investment Sale - TOTAL NON-OPERATING REVENUE 1,515,425

NON-OPERATING EXPENSE:Depreciation and Amortization 1,136,561 Bond Discount/(Premium) Amortization (63,981)

832,665 52,103

Member Agency Distributions 346,207 3,520

TOTAL NON-OPERATING EXPENSE 2,307,074

NET NON-OPERATING REVENUE (791,649)

N.I. BEFORE CAPITAL CONTRIBUTIONS (743,043)

CONTRIBUTED CAPITAL:Capital Contributions -

CHANGES IN NET POSITION (743,043)$

Other

Bond InterestSRF Loan Interest

Page 3 of 6

SANTA ROSA REGIONAL RESOURCES AUTHORITYSTATEMENT OF CASH FLOWS

AS OF DECEMBER 31, 2019

CASH FLOWS FROM OPERATING ACTIVITIES:Cash Received from Member Agencies 2,168,854$ Cash Payments to Suppliers for Goods

and Services (2,453,240)

NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES (284,386)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:Other Charges and Fee's 20,195 Proceeds from Issuance of Debt - Debt Service and Replacement Contributions 1,349,976 Member Agency Distributions (346,207) AR - Reserves Held w/ RCWD - Proceeds from SRF Loan 5,910,571 AP - Due to Member Agencies 3,500,000 Acquisition and Construction of Capital Assets (7,035,740) Principal Payments on Bonds (2,570,000) Interest Payments on Bonds (852,261)

NET CASH PROVIDED FROM / (USED) FOR CAPITAL RELATED FINANCING ACTIVITIES (23,466)

CASH FLOWS FROM INVESTING ACTIVITIES:Interest on Investments 135,915

NET CASH PROVIDED FROM INVESTING ACTIVITIES 135,915

NET INC/(DEC) IN CASH AND CASH EQUIVALENTS (171,937)

BEGINNING CASH AND CASH EQUIVALENTS 13,537,047

CASH AND CASH EQUIVALENTS AT AS OF DECEMBER 31, 2019 13,365,110$

Page 4 of 6

SANTA ROSA REGIONAL RESOURCES AUTHORITYSTATEMENT OF CASH FLOWS


RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES:

Operating Income(Loss) 48,606$ Adjustments to Reconcile Operating Income to

Net Cash Provided by Operating Activities:

Changes in Assets and Liabilities: Inc/Dec in Account Receivable (171,810) Inc/Dec in Inventory 43 Inc/Dec in Prepaid Expenses (21,252) Inc/Dec in Accounts Payable (46,723) Inc/Dec in Unearned Revenue (93,249)

NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES (284,386)$

NONCASH ACTIVITIES:

Depreciation 1,136,561 Bond Amortization (63,981)

Current Cash 2,519,714 Restricted Cash 10,845,397 Total 13,365,110$

Page 5 of 6

ANNUAL (1) CURR MO TO DATE CURR MO TO DATE

OPERATING REVENUE:Wastewater Service Charges

Primary / Secondary 3,241,876$ 270,156$ 1,620,938$ 270,156$ 1,620,939$ - 0.0%Collections 284,122 23,677 142,061 23,677 142,061 - 0.0%Tertiary 1,155,329 96,277 577,664 96,277 577,665 - 0.0%

TOTAL OPERATING REVENUE 4,681,327 390,111 2,340,664 390,111 2,340,664 - 0.0%

OPERATING EXPENSE:PRIMARY & SECONDARY TREATMENT

Contract - Admin & Operations Expense 1,657,543 138,129 828,772 138,129 828,771 0 0.0% Materials & Supplies 119,340 9,945 59,670 (1,272) 46,789 12,881 21.6% Utilities 826,906 68,909 413,453 57,399 430,030 (16,577) -4.0% Outside Services 454,292 37,858 227,146 33,732 222,451 4,695 2.1% Corrective Maintenance 22,500 1,875 11,250 - 2,044 9,206 81.8% TOTAL PRIMARY & SECONDARY TREATMENT 3,080,581 256,715 1,540,291 227,988 1,530,086 10,205 0.7%

COLLECTIONS SYSTEM Contract - Admin & Operations Expense 165,533 13,794 82,767 13,794 82,767 (0) 0.0% Materials & Supplies 1,080 90 540 234 234 306 56.7% Utilities 6,550 546 3,275 472 2,972 303 9.3% Outside Services 120,716 10,060 60,358 716 20,047 40,311 66.8% Corrective Maintenance 5,000 417 2,500 - - 2,500 100.0% TOTAL COLLECTIONS SYSTEM 298,879 24,907 149,440 15,216 106,020 43,420 29.1%

TERTIARY TREATMENT Contract - Admin & Operations Expense 664,901 55,408 332,451 55,408 332,451 (0) 0.0% Materials & Supplies 216,075 18,006 108,038 2,429 13,474 94,563 87.5% Utilities 146,997 12,250 73,499 6,189 49,380 24,119 32.8% Outside Services 165,896 13,825 82,948 16,156 89,031 (6,083) -7.3% Corrective Maintenance 22,500 1,875 11,250 - 437 10,813 96.1% TOTAL TERTIARY TREATMENT 1,216,369 101,364 608,185 80,183 484,773 123,412 20.3%

JPA ADMINISTRATION Contract - Admin & Operations Expense 202,739 16,895 101,370 16,895 101,370 (0) 0.0% Legal 15,000 1,250 7,500 - 3,899 3,601 48.0% Audit 11,000 917 5,500 11,000 11,000 (5,500) -100.0%

Administration Expense 100,939 8,412 50,470 5,133 54,912 (4,442) -8.8% TOTAL JPA ADMINISTRATION 329,678 27,473 164,839 33,027 171,180 (6,341) -3.8%

TOTAL OPERATING EXPENSE 4,925,507 410,459 2,462,754 356,414 2,292,058 170,695 6.9%

NET OPERATING REVENUE (244,180) (20,348) (122,090) 33,697 48,606 170,696 100.0%

NON-OPERATING REVENUEInterest Revenue - - - 69,557 141,734 141,734 100.0%Other Income - Debt Service 5,502,741 828,745 828,745 - 786,669 (42,077) -5.1%Other Income - Replacement Fund 930,757 77,563 465,379 - 563,307 97,929 21.0%Other Income - Solar - - - 3,717 23,715 23,715 100.0%Gain / Loss Investment Sale - - - - - - -100.0% TOTAL NON-OPERATING REVENUE 6,433,498 906,308 1,294,124 73,274 1,515,425 221,301 17.1%

NON-OPERATING EXPENSEDepreciation and Amortization - - - 188,439 1,136,561 (1,136,561) -100.0%Bond Discount/(Premium) Amortization - - - (10,664) (63,981) 63,981 100.0%Bond Interest 1,657,490 138,124 828,745 138,124 832,665 (3,920) -0.5%SRF Loan Interest - - - 13,124 52,103 (52,103) -100.0%Member Agency Distributions - - - 390,111 346,207 (346,207) -100.0%Other 11,500 958 5,750 - 3,520 2,230 38.8% TOTAL NON-OPERATING EXPENSE 1,668,990 139,083 834,495 719,134 2,307,074 (1,472,579) 100.0%

NET NON-OPERATING REVENUE 4,764,508 767,226 459,629 (645,860) (791,649) (1,251,278) -272.2%

N.I. BEFORE CAPITAL CONTRIBUTIONS 4,520,328 746,878 337,539 (612,163) (743,043) (1,080,582) -320.1%

CONTRIBUTED CAPITALCapital Contributions - - - - - - 0.0%

CHANGES IN NET POSITION 4,520,328$ 746,878$ 337,539$ (612,163)$ (743,043)$ (1,080,582)$ -320.1%

TO DATE

B U D G E T A C T U A L

SANTA ROSA REGIONAL RESOURCES AUTHORITYBUDGET COMPARISON


FAV/(UNFAV)

Page 6 of 6


INFORMATION ITEM


ITEM 7: GENERAL COUNSEL'S REPORT


General Counsel, Jim Ciampa

RECOMMENDATION:

This item is presented for the Santa Rosa Regional Resources Authority Board of Directors’

(Board) information.

DISCUSSION:

A verbal report will be presented to the Board.

ALTERNATIVES:

Not applicable

FISCAL ANALYSIS:

Not applicable


Not applicable


7


INFORMATION ITEM


ITEM 8: BOARD OF DIRECTOR'S COMMENTS


Members of the Board of Directors

RECOMMENDATION:

This item is presented for the Santa Rosa Regional Resources Authority (SRRRA) Board of

Directors’ (Board) information.

DISCUSSION:

This item is included on each SRRRA Board meeting agenda as a means for Board

members to share any comments and/or suggestions they might have, as well as discuss

possible future agenda items.

ALTERNATIVES:

Not applicable

FISCAL ANALYSIS:

Not applicable


Not applicable


8


INFORMATION ITEM


ITEM 9: ADMINISTRATOR'S COMMENTS, SUGGESTIONS, AND POSSIBLE FUTURE AGENDA ITEMS



RECOMMENDATION:

This item is presented for the Board of Director’s information.

DISCUSSION:

This item is included on each Santa Rosa Regional Resources Authority meeting agenda

as a means for the Administrator to share any comments and/or suggestions, and possible

future agenda items.

ALTERNATIVES:

Not applicable

FISCAL ANALYSIS:

Not applicable


Not applicable


9

Board of Directors

Meeting Material

April 14, 2020

Santa Rosa Regional Resources AuthorityItem 3 – 5 Year CIP and FY21 CIP Project

Approval for Non-Op Budget

April 14, 2020

Draft 5-Year Capital Improvement Plan

•Projection of Capital Projects over a 5 year planning period

(2021-2025)

•Projection of funding requirements

•Reviewed by the TAC and EAC

Project Prioritization

•Consider population benefited

•Consider benefit to cost = efficiency

•Priority Scoring Multi-criteria Prioritization Model• 1 = Highest Priority; 5 = Lowest Priority

•Apply funding constraints

•Fit projects

Project Model Output

Fiscal Year 2020-2021 Capital Improvement Plan

Major & Minor Capital ProjectsTotals - $450,000

Repair & Replacement

•Grit Classifier Replacement

•Sewer Manhole and Pipeline Repair

•Valve Replacement

•Total Budget – $280,000

Grit Classifier Replacement

Sewer Manhole and Pipeline Repair

Operational Efficiency

•Drain Line Manhole Construction


Regulatory

•Stairway Construction at SBR Building


Recommendation

The EAC recommends the Board;

1. Approve the 5 year CIP

2. Approved the FY21 project totaling $450,000, and direct staff

to include in the FY21 Non-Operating Budget for funding.

Questions?

Item 4 - Santa Rosa Regional Resources AuthorityFiscal Year 2020-2021 Budget

April 14, 2020

•Non-Operating Budget• Reviewed by TAC and EAC

•Operating Budget Summary• Operating Budget Detail Presented at March Board Meeting

•Total Operating & Non-Operating Member Agency Budget Allocations

•Recommendation

Agenda

Non-Operating Budget Highlights

• $163K Decrease in Debt Service based on 2017 Bond Issue

• $279K Increase in new CIP project Pay-Go funding request

• Remaining Pay-go CIP funding ($884k) not collected in current year and being reauthorized FY 2020/2021

• Estimated $188K in CIP funding paid by 2017 Bond Issue

• Estimated $11.4M in projected funds for Rehab Project • Funds to be reimbursed by SRF

• $107K for Capital Equipment (replacement)

Projected Debt Service

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Existing Debt Service Projected SRF Debt ServiceDebt Service Detail on Exhibit B

Non-Operating Budget Change from PY$6.43M FY 2019-20 - $6.78M FY 2020-21

$3.5K Increase or 5.4%1

$5.5

$0.2

$0.8

$0.0

$5.3

$0.5 $0.9

$0.1 $-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

Existing Debt Service Pay-go Capital - New Projects Pay-go Capital - Existing Projects Pay-go Capital - Capital Equipment

FY 19/20 FY 20/21

Pay-Go CIP Detail on Exhibit C

1Net of SRF & Bond Funded Projects

Non-Operating Budget1 Change from Prior Year


$-

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

19/20 20/21 19/20 20/21 19/20 20/21

EVMWD RCWD WMWD

Amounts in MillionsDebt Service Existing CIP New CIP Capital Equipment

$2.67$2.81 $2.76

$2.60

$1.17 $1.21

Operating Budget

FY 2020-2021 Op. Budget Member Agency Cost ShareEVMWD RCWD WMWD Total

Primary/Secondary $1,103,848 $1,341,678 $946,640 $3,392,166

Collections 96,302 117,051 82,587 295,941

Tertiary Treatment 419,971 870,617 0 1,290,588

Total $1,620,121 $2,329,346 $1,029,227 $4,978,695

FY 19-20 Op Budget Share $1,602,814 $2,287,597 $1,035,096 $4,925,507

$ Increase/(Decrease) $17,308 $41,749 ($5,869) $53,187

% Increase/(Decrease) 1.08% 1.83% (0.57%) 1.08%

• Overall Stable Primary/Secondary & Collection costs• Includes decrease in JPA Administrative costs (17.6%)• Includes energy cost increase - 2.2%

• Tertiary cost increase - 6.1%• Full year of Bleach vs Chlorine gas

Total FY 2020-2021 Member Agency Budget Allocations

FY 2020/2021 Total Budget1,2 Summary

1 Initial allocation based on CY 2019 Permanent flow monitoring data, True Up of Initial Allocation when FY 2020-2021 Permanent Flow Data Available 2 Net of SRF & Bond Funded Projects

$1.6 $1.6 $2.3 $2.3

$1.0 $1.0

$2.7 $2.8 $2.6 $2.8

$1.2 $1.2

$4.3 $4.4 $4.9 $5.1

$2.2 $2.2

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

19/20 20/21 19/20 20/21 19/20 20/21

EVMWD RCWD WMWD

Amounts in Millions

Operating Non-Operating

Recommendation

• That the Board Adopt the Resolution Approving the Proposed FY 2020-2021 Operating, Non-Operating, and CIP/Equipment Budgets

Questions?

FY 2020/2021 Non-Operating Budget1 Member Agency Cost Share


FY 2020-2021 Non-Operating Budget Member Agency Cost Share %Category EVMWD RCWD WMWD Total

Primary/Secondary 40.00% 40.00% 20.00% 100.00%Tertiary Treatment 40.00% 60.00% 0.00% 100.00%Collections System 43.57% 36.61% 19.82% 100.00%

FY 2020-2021 Non-Operating Budget Member Agency Cost Share $Category EVMWD RCWD WMWD Total

Primary/Secondary $1,373,359 $1,373,359 $686,679 $3,433,396Collections 284,155 426,232 0 $710,386Tertiary Treatment 1,148,918 965,387 522,643 $2,636,948FY 2020/2021 Total $2,806,431 $2,764,977 $1,209,322 $6,780,731

FY 2019/2020 Total $2,669,057 $2,597,256 $1,167,184 $6,433,497Increase/(Decrease)$ $137,374 $167,721 $42,138 $347,233Increase/(Decrease)% 5.15% 6.46% 3.61% 5.40%

FY 2020/2021 Total Budget Summary

FY 2020-2021 Total Budget Member Agency Cost Share AllocationOperating1 EVMWD RCWD WMWD Total

FY 2020/2021 $1,620,121 $2,329,346 $1,029,227 $4,978,695FY 2019/2020 $1,602,814 $2,287,597 $1,035,096 $4,925,507Increase/(Decrease)$ $17,308 $41,749 ($5,869) 53,187Increase/(Decrease)% 1.08% 1.83% (0.57%) 1.08%

Non-Operating2

FY 2020/2021 $2,806,431 $2,764,977 $1,209,322 $6,780,731FY 2019/2020 $2,669,057 $2,597,256 $1,167,184 $6,433,497Increase/(Decrease)$ $137,374 $167,721 $42,138 $347,233Increase/(Decrease)% 5.15% 6.46% 3.61% 5.40%

TotalFY 2020/2021 $4,426,553 $5,094,323 $2,238,549 $11,759,425FY 2019/2020 4,271,871 4,884,854 2,202,280 11,359,005Increase/(Decrease)$ $154,682 $209,470 $36,269 $400,421Increase/(Decrease)% 3.62% 4.29% 1.65% 3.53%

1 Initial allocation based on CY 2019 Permanent flow monitoring data, True Up of Initial Allocation when FY 2020-2021 Permanent Flow Data Available 2 Net of SRF & Bond Funded Projects

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