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HomeMy WebLinkAbout2025-01-30 UVWA PacketPage 1 of 2 Water Executive Committee Special Meeting AGENDA Ukiah Valley Conference Center ♦ 200 South School Street ♦ Ukiah, CA 95482 To participate or view the virtual meeting, go to the following link: https://us06web.zoom.us/j/83268733029 Meeting ID: 832 6873 3029 Alternatively, you may view the meeting (without participating) by clicking on the date and name of the meeting at www.cityofukiah.com/meetings, then go to the media tab. January 30, 2025 - 5:00 PM 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF MINUTES 2.a. Approval of the Minutes for the December 5, 2024, Special Meeting. 3. AUDIENCE COMMENTS ON NON-AGENDA ITEMS The Ukiah Valley Water Authority (UVWA) / Water Executive Committee Members welcomes input from the audience. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments on non-agenda items. If you wish to submit written comments, please provide information to the UVWA, located at 300 Seminary Avenue, Ukiah, CA, 95482. 4. NEW BUSINESS 4.a. Adoption of Resolution to Establish Standardized Dates, Fees, Charges, Penalties, and Deposit Amounts Recommended Action: Staff recommends that the Board adopt the resolution to establish the proposed standardized service charges, billing periods, and protocols for service initiation and termination. This standardization will promote fairness, reduce customer confusion, and enhance operational efficiency across the UVWA service area. Attachments: 1. UVWA Resolution - Fee, Charges, Penalties, and Deposits 5. UNFINISHED BUSINESS 6. ADMINISTRATIVE AND OPERATIONAL REPORTS 6.a. Report on Status of Application for SAFER Planning Grant. Page 1 of 13 Page 2 of 2 6.b. Progress Report on Services as of Service Start Date of January 1, 2025 6.c. Report on Status of Secretary of State and State Controller Filing. 6.d. General Management Report. 6.e. Finance and Billing Report Recommended Action: Receive report and provide direction to staff, if applicable. Attachments: 1. UVWA Start-up Costs 7. COMMITTEE MEMBER ANNOUNCEMENTS AND REPORTS 8. SET NEXT MEETING DATE 8.a. Discussion, Consideration, and Scheduling of Next Meeting Date with Meeting to be Held at the Ukiah Valley Conference Center, 200 South School Street, Ukiah, CA 95482, at 5:00 p.m. Recommended Action: Discuss and have consensus on whether to hold or cancel the next regular meeting date of February 6th, or to schedule another day of the Commissioners' choosing. 9. ADJOURNMENT Please be advised that the Ukiah Valley Water Authority (UVWA)/ Water Executive Committee needs to be notified 24 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. UVWA complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the UVWA Committee Members after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00 am to 5:00 pm. Any handouts or presentation materials from the public must be submitted to the clerk 48 hours in advance of the meeting; for handouts, please include 10 copies. I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California; and at the Ukiah Valley Conference Center, located at 200 South School Street, Ukiah, California; not less than 24 hours prior to the meeting set forth on this agenda. Kristine Lawler, CMC/CPMC Dated: 1/24/25 Page 2 of 13 AGENDA ITEM 2a Page 1 of 2 WATER EXECUTIVE COMMITTEE MINUTES Regular Meeting UKIAH VALLEY CONFERENCE CENTER 200 South School Street, Ukiah, CA 95482 Virtual Meeting Link: https://us06web.zoom.us/j/83268733029 Ukiah, CA 95482 December 5, 2024 5:00 p.m. 1. CALL TO ORDER AND ROLL CALL The Water Executive Committee (WEC) met at a Regular Meeting on December 5, 2024, having been legally noticed on November 27, 2024. The meeting was held in person and virtually at the following link: https://us06web.zoom.us/j/83268733029. Chair Gaska called the meeting to order at 5:00 p.m. Roll was taken with the following Members Present: Tim Prince, Tom Schoeneman, Juna Orozco, Douglas Crane, Gary Nevill (arriving at 5:14 p.m.), Devin Gordon, Jerry Cardoza, and Adam Gaska. Staff Present: Sean White, Ukiah Water Resources Director; Jared Walker, Redwood and Millview Water Districts General Manager; and Kristine Lawler, Clerk. Also Present: Phil Williams, Legal Counsel; Lori Martin, Ukiah Billing and Customer Service Manager; and Olga Keough, Ukiah Finance Controller. CHAIR GASKA PRESIDING. 2. APPROVAL OF MINUTES a. Approval of the Minutes for the November 7, 2024, Special Meeting. Motion/Second: Crane/Orozco to approve the minutes for the November 7, 2024, Special Meeting, as submitted. Motion carried by the following roll call votes: AYES: Prince, Schoeneman, Orozco, Crane, Cardoza, and Gaska. NOES: None. ABSENT: Nevill. ABSTAIN: Gordon. 3. AUDIENCE COMMENTS ON NON-AGENDA ITEMS No public comments were received. 4. NEW BUSINESS a. New Committee Member Introductions and the Clerk to Administer Oaths of Office. Presenter: Kristine Lawler, Clerk. Members introduced themselves and the Clerk administered the Oath of Office to Devin Gordon. 5. UNFINISHED BUSINESS 6. ADMINISTRATIVE AND OPERATIONAL REPORT a. Report on Status of Application for SAFER Planning Grant. Presenters: Sean White, Ukiah Water Resources Director and Jared Walker, Redwood and Millview Water Districts General Manager. Page 3 of 13 Water Executive Committee Minutes for December 5, 2024, Continued: Page 2 of 2 Report was received. b. Report on Expected Services Start Date of January 1, 2025, and Progress Report. Presenters: Sean White, Ukiah Water Resources Director; Lori Martin, Ukiah Billing and Customer Service Manager; Jared Walker, Redwood and Millview Water Districts General Manager; and Olga Keough, Ukiah Finance Controller. Reports were received. c. Report on Status of Secretary of State and State Controller Filing. Presenter: Phil Williams, Legal Counsel. Report was received. d. General Management Report. Presenters: Jared Walker, Redwood and Millview Water Districts General Manager; and Sean White, Ukiah Water Resources Director. Report was received. 7. COMMITTEE MEMBER ANNOUNCEMENTS AND REPORTS Presenter: 8. SET NEXT MEETING DATE Presenter: Kristine Lawler, City Clerk. Member Consensus to cancel the Regular meeting of January 2, 2025, and schedule a Special meeting for January 30, 2025, at 5:00 p.m. 9. ADJOURNMENT There being no further business, the meeting adjourned at 5:30 p.m. ________________________________ Kristine Lawler, CMC/CPMC Page 4 of 13 Page 1 of 2 Agenda Item No: 4.a. MEETING DATE/TIME: 1/30/2025 ITEM NO: 2025-87 WATER EXECUTIVE COMMITTEE STAFF REPORT SUBJECT: Adoption of Resolution to Establish Standardized Dates, Fees, Charges, Penalties, and Deposit Amounts PREPARED BY: Dan Buffalo, Finance Director PRESENTER: Dan Buffalo, Finance Director, City of Ukiah ATTACHMENTS: 1. UVWA Resolution - Fee, Charges, Penalties, and Deposits Summary: This report presents a resolution for the Ukiah Valley Water Authority (UVWA) Board's consideration to establish standardized dates, fees, charges, penalties, and deposit amounts for water services across the UVWA service area. The resolution also introduces consistent protocols for service initiation and termination, aimed at improving clarity, uniformity, and operational efficiency. Background: The formation of the Ukiah Valley Water Authority (UVWA) represents a significant milestone in unifying water service operations across the Ukiah Valley. The UVWA brings together multiple water service agencies, including Willow, Redwood Valley, Millview, and the City of Ukiah, each of which has historically operated with its own unique fee structures, policies, and procedures. The resolution under consideration specifically pertains to all non-rate fees, charges, penalties, and deposits associated with water service, excluding rates and expansion (connection) fees. These amounts are distinct from those established through the Proposition 218 process, which governs water rates and certain connection fees. Standardizing these non-rate fees and charges is a critical step in aligning the operational framework of these formerly discrete agencies. This action will reduce confusion for customers, ensure equitable treatment across the service area, and improve administrative efficiency. Discussion: Proposed Fees, Charges, Penalties, and Deposits A summarized listing of the amounts enumerated in the resolution include the following: Deposits: • Residential: $0 - $100.00 (depending on credit risk) • Commercial: Twice the monthly base charge Service Initiation (Application) Fee: $25 Page 5 of 13 Page 2 of 2 Service Termination and Reconnection Fees: • Disconnection Fee: $85 - $100.00 • Reconnection Fee: $50 - $90.00 Penalties: • Delinquent penalties: $15 - $40.00 Other fees and charges: • Return check/payment fee: what is charged to the City of Ukiah by the bank plus $10.00 to cover City expenses, such as staff time and other resources. A full listing is included in the resolution here as Attachment 1. These proposed fees and charges are designed to recover administrative costs, while the penalties are intended to discourage certain activities, such as late or non-payments. Further, the proposed standardized fees, charges, penalties, and deposits are designed to unify the billing practices and associated administrative and operating amounts for the UVWA members. This resolution will supersede associated resolutions with the City of Ukiah and Willow Water District, the former having established such amounts for Redwood and Milliview.. Recommended Action: Staff recommends that the Board adopt the resolution to establish the proposed standardized service charges, billing periods, and protocols for service initiation and termination. This standardization will promote fairness, reduce customer confusion, and enhance operational efficiency across the UVWA service area. Page 6 of 13 Attachment 1 Page 1 of 3 UKIAH VALLEY WATER AUTHORITY RESOLUTION NO. 2025- A RESOLUTION OF THE UKIAH VALLEY WATER AUTHORITY (UVWA) ESTABLISHING UTILITY PAYMENT DUE DATES, FEES, DEPOSITS, AND DELINQUENCY DATES AND PENALTIES. WHEREAS Ukiah Valley Water Authority has the authority to establish regulations covering payment regulations governing utility billing procedures and fees; and WHEREAS it has been determined that certain deposits and rules are necessary and reasonable to ensure that customers of utility services provided by the Ukiah Valley Water Authority pay for the services they receive. NOW THEREFORE BE IT RESOLVED AS FOLLOWS: Section 1. Due Dates for Payments: Utility service bills will be sent to customers monthly. Payment on all utility service bills are due within 26 days of the bill date. Section 2. Application Fees:  New Service Application Fee: $25.00. This fee is not refundable once the application has been submitted. Section 3. Rules Governing Utility Deposits:  Use of a Credit Reporting Agency: The UVWA uses a Credit Reporting Agency to provide Collection Risk Information.  Deposits Required: Prior to the UVWA connecting utilities to any property, the applicant for service shall deposit funds with the Finance Department in the amount specified unless a deposit is excused. o Property Owner Exception: Deposits may be waived for any applicant who is the owner of record of the property to be served unless service has been disconnected previously for nonpayment. o Domestic Water service:  New service applicants who pose no credit risk will be charged no deposit.  New service applicants who pose minimal risk: The greater of the estimated average monthly consolidated bill averaged over a 12-month period or a minimum of a 50.00 deposit.  New service applicants who pose substantial credit risk: The greater of twice the average monthly consolidated bill for water averaged over a 12-month period or a minimum of a $100.00 deposit. o Commercial Water service  The greater of twice the estimated average monthly consolidated bill of a similar business averaged over a 12-month period or a minimum of a $100.00 deposit. Page 7 of 13 Attachment 1 Page 2 of 3 o Domestic and Commercial customers utility service that is disconnected due to non- payment will be required to provide an additional deposit equal to greater of twice the average monthly consolidated bill for water service averaged over a 12-month period or a minimum of $150.00. Section 4. Delinquency Penalties and Fees: Utility bills are due and payable upon presentation and considered late if not paid in full 26 days following the bill date. The following delinquency penalties and fees will apply to unpaid utility service accounts:  Delinquent Penalty: If payment is not received by the 26th day following the bill date, a $15.00 fee will be automatically assessed.  Final Notice: $15.00 fee will be assessed if the delinquent amount is not received within 7 days of the Delinquent Penalty. The Final Notice will be mailed to the address on record.  48-Hour Notice: $40.00 fee applied if the delinquent amount is not received within 7 days of the Final Notice. This notice will be communicated to the customer through multiple channels, including email, text, and phone call.  Disconnection Fees: In addition to increased deposit requirement in Section 1. o Service Disconnect Fee: $85.00 o Premium Disconnect Fee: $100.00 o Service Reconnection Fee: $50.00 o Premium Reconnect Fee: $90.00 Premium Fees are disconnections and reconnections requiring special handling, such as after-hours requests.  Other Fees: o Tampered Meter/ Vandalism Penalty: $100.00 o Cut Lock Fee: $100.00 o Returned Payment Fees: $25 for the first returned item and $35 per item if more than one item is returned within the 12-month period. The fee may adjust annually, depending on adjustments to bank fees not to exceed 20% at any given year. Section 5: Property Owner Responsibility for Service to Leased or Rented Properties: Property owners shall be obligated for all utility service accounts for rented or leased properties.  Obligation for Water Use: The property owner is ultimately responsible for all utilities used at their property, regardless of whether it is occupied by tenants.  Delinquent Water Bill Notifications: If a bill becomes delinquent (unpaid after its due date), the property owner will be provided with copies of the delinquent bill. This ensures they are informed of any issues with non-payment.  Liability for Unpaid Bills: Regardless of the arrangement between the property owner or the tenants regarding payment responsibility for utility services; the property owner will be held liable for any utility bills that are unpaid. Page 8 of 13 Attachment 1 Page 3 of 3 Section 6. Effective date: This resolution shall become effective 60 days after adoption. Customers will be notified of the change through standard communications, which may include one or more of the following: bill inserts, email notifications, and outreach efforts targeting delinquent customers. PASSED AND ADOPTED this 30th day of January 2025, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: Adam Gaska, Chair ATTEST: Kristine Lawler, CMC/CPMC Page 9 of 13 Page 1 of 2 Agenda Item No: 6.e. MEETING DATE/TIME: 1/30/2025 ITEM NO: 2025-88 WATER EXECUTIVE COMMITTEE STAFF REPORT SUBJECT: Finance and Billing Report PREPARED BY: Dan Buffalo, Finance Director PRESENTER: Finance and Billing team ATTACHMENTS: 1. UVWA Start-up Costs Summary: The Ukiah Valley Water Authority (UVWA) Water Executive Committee will receive reports from the Finance and Billing team on a variety of topics enumerated in the staff report. Background: The Board will receive reports and updates, and request feedback on the following topics: 1. Joint rate study for UVWA members and MSAs 2. UVWA Accounting 3. Budgeting and reporting requirements and preferences 4. Billing transition update, including administrative transition costs 5. Non-standard billing arrangements Discussion: Discussion Topics 1. Joint Rate Study for UVWA Members and MSAs A joint rate study is recommended to ensure service costs are adequately funded and to begin aligning rates and fees across all UVWA member agencies. This study would provide a comprehensive analysis of current rates and expenditures, enabling UVWA members to develop a consistent and equitable fee structure. By including all member agencies in the study, the UVWA can create a unified framework that reflects the true cost of service delivery while promoting financial sustainability. Additionally, the study would address discrepancies in rates and fees between agencies and lay the foundation for future adjustments under Proposition 218 compliance. Every agency is due for their next five year rate study. 2. UVWA Accounting The City of Ukiah, as the primary fiscal agent for UVWA, will account for UVWA activities within a distinct fund in the City's accounting system. This approach ensures transparency and clear delineation of UVWA revenues and expenditures from other City operations. All transactions will be tracked and reported in accordance with Generally Accepted Accounting Principles (GAAP). Staff will work closely with UVWA leadership to ensure all Page 10 of 13 Page 2 of 2 financial activities are accurately recorded and reported, and any specific preferences or requirements from UVWA for accounting treatment can be incorporated as necessary. 3. Budgeting and Reporting Requirements and Preferences The City of Ukiah currently prepares an annual budget and issues monthly budget-to-actual reports for internal tracking. For UVWA activities, staff recommends implementing quarterly financial reporting to the Board of Directors to provide timely updates on financial performance and operational activities. These reports would include revenues, expenditures, and other key financial performance metrics. Staff seeks feedback from the UVWA Board on additional reporting requirements or preferences, such as inclusion of detailed fund balances, capital improvement updates, or variance analyses, to ensure alignment with UVWA’s expectations. 4. Billing Transition Update, Including Administrative Transition Costs The transition to a unified billing system for UVWA member agencies is ongoing. Staff has made significant progress in integrating customer accounts into a single platform, standardizing billing procedures, and ensuring accuracy in service charges. However, challenges have arisen, including addressing discrepancies in account data and adapting legacy systems to the new billing framework. Administrative transition costs to date include system upgrades, staff training, and consultant support, which are being accounted for by a specific project code and reported here as Attachment 1. 5. Non-Standard Billing Arrangements During the billing conversion process, several accounts with non-standard arrangements have been identified. These include special agreements, such as negotiated rates or unconventional billing cycles, that do not align with the current rate structure and billing practices. Staff is reviewing these accounts individually to assess their validity and impact on overall revenue. Where possible, staff will recommend transitioning these accounts to align with the standardized rate structure, subject to Board approval. A separate report will be presented to the Board outlining these arrangements and potential resolutions. Staff is available to answer any questions or provide additional detail on these discussion topics as needed. Recommended Action: Receive report and provide direction to staff, if applicable. Page 11 of 13 01/24/2025 City of Ukiah PAGE 1 13:43:46 HISTORICAL ACTUALS COMPARISON REPORT glactrpt FOR PERIOD 13 OF 2025 ACCOUNTS FOR:PRIOR YR3 PRIOR YR2 LAST YR CURRENT YR CY REV 18469 UVWA START-UP COSTS ACTUALS ACTUALS ACTUALS ACTUALS BUDGET 51 PERSONNEL 51110 REGULAR SALARIES & WAGES .00 .00 .00 1,099.64 .00 51120 NON-REGULAR SALARIES & WAGES .00 .00 .00 3,132.09 .00 51210 RETIREMENT (PERS).00 .00 .00 138.01 .00 51220 INSURANCE .00 .00 .00 344.55 .00 51230 WORKERS COMP .00 .00 .00 275.06 .00 51240 MEDICARE .00 .00 .00 60.36 .00 51260 FICA .00 .00 .00 194.19 .00 TOTAL PERSONNEL .00 .00 .00 5,243.90 .00 52 OTHER OPERATING 52100 CONTRACTUAL SERVICES .00 .00 38,775.00 58,551.91 151,725.00 54161 BACKGROUND & PHYSICALS .00 .00 .00 4,289.50 .00 54330 COMPUTER AND TECHNOLOGY .00 .00 .00 20,127.94 .00 TOTAL OTHER OPERATING .00 .00 38,775.00 82,969.35 151,725.00 TOTAL UVWA START-UP COSTS .00 .00 38,775.00 88,213.25 151,725.00 TOTAL EXPENSES .00 .00 38,775.00 88,213.25 151,725.00 GRAND TOTAL .00 .00 38,775.00 88,213.25 151,725.00 ATTACHMENT 1 Page 12 of 13 01/24/2025 City of Ukiah PAGE 2 13:43:47 HISTORICAL ACTUALS COMPARISON REPORT glactrpt FOR PERIOD 13 OF 2025 Field # Total Page Break Sequence 1 12 Y Y Sequence 2 10 Y N Sequence 3 11 Y N Sequence 4 0 N N Report title: HISTORICAL ACTUALS COMPARISON REPORT Report Through (P)eriod or (T)otal for years: T Fiscal Year/Period for reports: 2025/13 Print totals only: Y Suppress zero balance accounts: Y Print revenue as credit: Y Print Full or Short description: F Print Full GL account: N Sort by Full GL account: N Multiyear view: D Page 13 of 13