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Home My WebLink About04.23.25 WB Agenda Packet Special MtgBAKERSFIELD THE SOUND OFC5awt41irtf �e#er WATER BOARD Bob Smith, Chair Andrae Gonzales Manpreet Kaur CITY OF BAKERSFIELD WATER BOARD SPECIAL MEETING Wednesday, April 23, 2025 - 9:00 a.m. Water Resources Building Conference Room 1000 Buena Vista Road, Bakersfield, CA 93311 AGENDA l . CALL TO ORDER 2. ROLL CALL 3. PUBLIC STATEMENTS A. Agenda Item Public Statements B. Non -Agenda Item Public Statements 4. MINUTES A. Approval of the Minutes of the Regular Water Board Meeting of March 12, 2025 - For Board Review and Action 5. KERN RIVER LEVEE DISTRICT b. REPORTS A. Kern River & Isabella Reservoir Operations Report - For Board Information 7. HEARINGS 8. NEW BUSINESS A. Old River Mutual Water Company & South Kern Mutual Water Company Mandatory Consolidation - For Board Information Water Board Agenda April 23, 2025 9. WATER BOARD STATEMENTS 10. CLOSED SESSION A. Conference with Legel Counsel - Potential Litigation Closed session pursuant to Government Code section 54956.9 (d) (2), (e) (1) (One Matter) 11. CLOSED SESSION ACTION 12. ADJOURNMENT POSTED: April 21,, 2025 w ADMINISTRATIVE REPORT BAKERSFIELD,,eior WATER BOARD MEETING DATE: April 23, 2025 AGENDA SECTION: Minutes ITEM: 4. A. TO: Bob Smith, Chairman Andrae Gonzales, Member Manpreet Kaur, Member FROM. Kristina Budak, Water Director DATE: April 21, 2025 A D0Dr1\/Cr% DEPARTMENT HEAD vf SUBJECT: Approval of the Minutes of the Regular Water Board Meeting of March 12, 2025. RECOMMENDATION: Staff recommends approval of the Minutes of the Regular Water Board Meeting of March 12, 2025. BACKGROUND: BAKERSFIELD THE SOUND OF�a4e*kf MINUTES OF THE SPECIAL MEETING OF THE WATER BOARD - CITY OF BAKERSFIELD Wednesday, March 12, 2025 - 10:00 a.m. Water Resources Conference Room 1000 Buena Vista Rd., Bakersfield, CA 93311 CALL TO ORDER Chairman Smith called the meeting to order at 10:01 a.m. 2. ROLL CALL Present: Chairman Smith, Member Gonzales, Member Kaur (seated at 10.03 am) Absent: None 3. PUBLIC STATEMENTS Non -agenda item: Laljeet Sangha, University of California Agriculture and Natural Resources Community Water Services Advisor. Mr. Sanga introduced himself and provided business cards to Water Board Members. 4. MINUTES A. Approval of the Minutes of the Special Water Board Meeting of February 12, 2025. Motion by Member Gonzales to approve the Minutes of February 12, 2025. UNANIMOUSLY APPROVED 5. KERN RIVER LEVEE DISTRICT 6. REPORTS A. Kern River & Isabella Reservoir Operations Report Daniel Maldonado, Assistant Water Director, first discussed the Kern River Basin Snowpack Accumulation graph in the Water Board Packet. Mr. Maldonado explained the Kern River Watershed and the eight snow sensors to capture snow data used in forecasting the April through July runoff. Department of Water Resources (DWR) Bulletin 120 Report most recent Bakersfield, California, March 12, 2025 — Page 2 REPORTS (continued) report projected 80% of normal water year. Projection is expected to rise with more storms predicted. The City of Bakersfield would receive approximately 125,000-135,000 acre-feet of water with 80 percent of normal water year. Mr. Maldonado discussed the second graph, Kern River Inflow, Outflow, and Isabella Reservoir Operations Water Year 2024-2025, reporting the current inflow 786 cfs, outflow 300 cfs., and the total storage at Isabella 197,413 acre- feet with approximately 36,800 acre-feet belonging to the City of Bakersfield. Member Gonzales inquired how climate change has affected inflow and outflows. Chairman Smith inquired about the peak storage maximum. 7. HEARINGS — None 8. NEW BUSINESS A. Proposed Domestic Water Rate Increase Kristina Budak, Water Director, introduced City staff in attendance Rick Anthony, Assistant City Manager, Randy McKeegan, Finance Director, Robert Szilagyi, Budget Officer, who have collaborated with Water staff on the proposed Domestic/Municipal Water Rate Increase. Ms. Budak explained the need to increase rates due to expenses that occurred to ensure the system remains operational, new and continuing regulatory requirements, and increased cost of utilities. Ms. Budak discussed Municipal Services responsibilities of providing safe clean drinking water to over 165,000 residents by acquiring surface water and treated water supplies, meet all State and Federal regulatory requirements, and maintain the system and address aging infrastructure. The latest rate increase of 2023 and current rates were discussed. To develop the proposed rate increase, staff developed a 10-year Infrastructure Master Plan, developed a 10-year Budget, and prepared rate studies. Ms. Budak explained the required and significant CIP costs and O&M costs impacting the Water Rate Increase. Daniel Maldonado, Assistant Director, presented the Water Rate Increase Options. Water Board was provided with the current rate and four rate increase options comparing all options to the reserve target fund balance, explaining that with estimated expenses and revenue, current rates would deplete the reserve target fund balance by FY 2027. Staff displayed a graph of each rate increase option compared to average monthly bills of local water purveyors in the area. Ms. Budak provided a timeline to achieve a rate increase by July 1, 2025. Chairman Smith agrees with staff recommendation of Option 1 and encouraged staff to consider solar fields to help with the rising electric costs. Member Gonzales agreed with Chairman Smith but asked staff about the conservation aspect of the calculation. Mr. Maldonado confirmed a 3 percent conservation reduction and 1.75 percent growth was factored into all aspects of the revenues. Member Gonzales inquired about the simple percentages verse compound percentages to which Mr. Maldonado and Mr. Szilagyi provided clarification. Member Gonzales asked staff to show compound rate. Member Kaur asked that the message to the public be clear with key points as to why rates are being increased and that Bakersfield, California, March 12, 2025 — Page 3 NEW BUSINESS (continued) all water purveyors are being affected by increased costs and regulations. Staff asked the Water Board to approve staff recommendation, which is to present the rate increase before City Council requesting the issue of Prop 218 notices to residents. Motion by Member Gonzales to approve bringing staffs recommendation of Option I before City Council at Regular Meeting on March 26,, 2025. UNANIMOUSLY APPROVED B. Proposed Sewer User Rate Increase Kristina Budak, Water Director, discussed Wastewater Responsibilities of treating wastewater & handle biosolids for over 400,000 residents which includes providing tertiary water to the sports complex, accepting septage and grease from hauling companies, meeting all State permit requirements, and maintaining aging infrastructure. The sewer rate is included on the property tax bill. In 2006 the flat rate fee was $135, and the current rate is $239. To develop the proposed rate increase staff developed a 10-year Infrastructure Master Plan, developed a 10-year Budget, and prepare rate studies. Ms. Budak explained the required and significant CIP costs and O&M costs impacting the Sewer Rate Increase including the approximately 500-million-dollar Wastewater Treatment Plant 2 (WW TP 2) replacement project due to aging infrastructure and technology. Evette Roldan, Assistant Director, presented the Sewer Rate Increase Options. Water Board was provided with the current rate and four rate increase options comparing all options to the reserve target fund balance explaining that with estimated expenses and revenue, current rates would deplete the reserve target fund balance within the next two fiscal years. Staff displayed a graph comparing each rate option with a target of fully funding WWTP 2 replacement project by Fiscal Year 2029. Ms. Roldan explained that due to the rates being charged on the tax roll the minimum reserve for Wastewater is nine months of operational cost. Staff recommend Option 1 as it places the City in a better fiscal position. In addition, staff displayed a graph comparing each rate option to other cities in California. Ms. Budak provided a timeline to achieve a rate increase by July 1, 2025. Chairman Smith ask how much money was allotted in the budget for replacing deteriorating sewer lines. Ms. Roldan stated 30 million is allotted in the budget for replacement of sewer and storm drains. Chairman Smith asked staff if any Plant 3 will have then same issues with maintenance and are costs included in the rate calculation. Staff explained Plant 3 is currently being maintained and developers will contribute to upgrade costs needed for to Plant 3. Chairman Smith inquired about the City's relationship with East Niles Community Services District (ENCSD) to which staff replied the City has agreements with both ENCSD and Kern Sanitation Authority to treat part of their flow, but each entity maintains their collection system. Member Gonzales inquired as to why the City has not kept up with other cities. Staff replied, prior management and next level of management had always opted to be the lowest rates, choosing to defer Bakersfield, California, March 12, 2025 — Page 4 NEW BUSINESS (continued) maintenance, opting to repair rather than replace. Member Gonzales requested staff in the future to make the rate increases annually and more palatable to the residents with smaller incremental increases verses larger increases. Member Gonzales also asked staff to investigate and repair the storm drains of the downtown area as flooding is an issue and has inhibited the revitalization of downtown areas. Member Gonzales informed staff of a potential issue with a sewer line in the Oleander area. The sewer line is reported to not meet the capacity and runs through the backyards of the properties. Staff will reach out to Public Works to request that they evaluate the Oleander area and identify a project into the existing plan. Member Kaur appreciated staff's presentation and forward thinking. Motion by Member Gonzales to approve bringing staffs recommendation of Option I before City Council at Regular Meeting on March 26., 2025. UNANIMOUSLY APPROVED Chairman Smith instructed staff to have a representative from Public Works in attendance at future Water Board Meetings when discussing certain Public Works projects funded by Water Department, Wastewater Division. 10. CLOSED SESSION A. Conference with Legal Counsel — Potential Litigation Closed session pursuant to Government Code section 54956.9(d)(2), (e)(3) (One matter) Chairman Smith recessed the regular meeting to Closed Session at 11:27 a.m. Chairman Smith adjourned Closed Session and reconvened to the regular meeting at 12:29 p.m. Deputy City Attorney Collom stated there is no reportable action regarding Closed Session on Item A. 12. ADJOURNMENT Chairman Smith adjourned the meeting at 12:30 p.m. Bob Smith, Chairman City of Bakersfield Water Board Kimberly Aleman, Secretary City of Bakersfield Water Board 0 oft -RZR ADMINISTRATIVE REPORT BAKERSFIELD ,E UrooF��,�.„� WATER BOARD MEETING DATE: April 23, 2025 AGENDA SECTION: Reports ITEM: 6. A. TO: Bob Smith, Chairman Andrae Gonzales, Member Manpreet Kaur, Member FROM. Kristina Budak, Water Director DATE: April 21, 2025 SUBJECT: Kern River & Isabella Reservoir Operations Report RECOMMENDATION: For board information. DEPARTMENT HEAD BACKGROUND: Report on current Kern River flow and Isabella storage conditions. SAD I u 0 Go ff LU 0 Pm- 0 0 CL en C-4) 0 CAC (D 0 8 8 foop '1000 4WD *Mot. ui cn z 0 u 0 0 0 0 0 C) 0 0 0 0 C) 0 0 0 0 0 0 0 0 0 0 0 8 0 0 8 8 0 C5 Iri ci Nci ljd 1.6 d L-r5 d d li-5 CJ '-d d li-5 d 'j-5 cj (Ij ti-)*r--lU-) L-0 L-O W-) r---, -14- In It (N Iq 0 14 r*-.. CY) lil) CN r, ti-) ry-) co P) N r14 R Lr) N 0 jj:V- UOIIDA013 BAKERSFIELD I HE SOUND OF�aort� ADMINISTRATIVE REPORT WATER BOARD MEETING DATE: April 23, 2025 AGENDA SECTION: New Business ITEM: 8. A. TO: Bob Smith, Chairman Andrae Gonzales, Member Manpreet Kaur, Member FROM. Kristina Budak, Water Director DATE: April 21, 2025 APPROVED DEPARTMENT HEAD *- SUBJECT: Old River Mutual Water Company & South Kern Mutual Water Company Mandatory Consolidation RECOMMENDATION: For Board Information BACKGROUND: Staff will update the Water Board regarding the state mandated consolidation of the Old River Mutual Water Company ("ORMWC") and the South Kern Mutual Water Company Mandatory ("SKMWC") with City of Bakersfield's ("City") municipal water system. This report will provide an overview of this matter's history, its current status, and what work remains to be done. Staff will also answer any questions and address any concerns that the Water Board may have. 13A �yCOV0 Ar�A� ADMINISTRATIVE REPORT U RY l ifl�ORWATER BOARD LS, ' MEETING DATE: April 23, 2025 AGENDA SECTION: Closed Session ITEM: 10. A. TO: Bob Smith, Chairman Andrae Gonzales, Member Manpreet Kaur, Member FROM: Virginia Gennaro, City Attorney DATE: April 21, 2025 A DDD^I/Cr% DEPARTMENT HEAD vif`� SUBJECT: 1. Conference with Legal Counsel — Potential Litigation Closed session pursuant to Government Code section 54956.9(d) (2), (e) (1) re: one (1) matter. MSC:js S:\WATER\Waterboard\24-25\2025.03.12 - Admin Report Closed Session PotLit.l