regular meeting tuesday, june 23, 2020, 5:30 p.m

Grant Burton Commissioner Chair

Susan Mulligan Commissioner Vice-Chair

Nova Clite Suzanne McCombs Commissioner Commissioner

Gerhard Hubner Robert McCord Commissioner Commissioner

Susan Rungren, Ventura Water General Manager Miles Hogan, Assistant City Attorney Debra Gallegos, Recording Secretary

REGULAR MEETING

TUESDAY, JUNE 23, 2020, 5:30 P.M.

IN ACCORDANCE WITH THE CALIFORNIA GOVERNOR’S EXECUTIVE STAY AT HOME ORDER AND THE COUNTY OF VENTURA HEALTH OFFICER DECLARED LOCAL HEALTH EMERGENCY AND BE WELL AT HOME ORDER RESULTING FROM THE NOVEL CORONAVIRUS (COVID-19), CITY HALL IS CLOSED TO THE PUBLIC. TO FIND OUT HOW YOU MAY ELECTRONICALLY ATTEND THE CITY COUNCIL MEETING AND PROVIDE

AGENDA REVISED 6/22/20ADD ATTACHMENT TO AGENDA ITEM 4

June 23, 2020 Water Commission Meeting Agenda of 4

Staff Reports relating to this agenda are available on the City’s website – https://www.cityofventura.ca.gov/AgendaCenter/Water-Commission-22.

Any materials related to an agenda item submitted to the Water Commission after distribution of the agenda packet are available on the City’s website – https://www.cityofventura.ca.gov/1236/9455/City-Council-Public-Hearing-NoticesSuppl .

In compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting, please contact the Debra Gallegos at (805) 654-4587 or the California Relay Service at (866) 735-2929. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

PUBLIC PARTICIPATION OPTIONS to help reduce the spread of COVID-19:

1. Join a WebEx meeting LIVE:https://cityofventura.webex.com/cityofventura/onstage/g.php?MTID=e7b59e3808b579d79d3176597735975b6

NOTE: WebEx link only works while meeting is LIVE. After meeting has ended, use the Archived Video link to view the meeting.

Join with only an “audio” connection: 1-408-418-9388 / Access Code 627 187 980

2. Watch live streaming or an Archived Video https://www.cityofventura.ca.gov/718/VideosCable TV - Channel 15, live and replayed as listed on CAPS media schedule.

3. Submit your comments via email by 3:00 p.m. on the Water Commission meeting day. Pleasesubmit your comment to the Water Commission Secretary using this formhttps://www.cityofventura.ca.gov/1829/City-Council-Meeting-Electronic-Comment- or send anemail to [email protected] (up to 1000 characters) When sending an email,please indicate in the Subject Line, the Agenda item number (i.e. Item No. 2). Your form/emailwill be read by Water Commissioners and placed into the item’s record at the meeting.

4. When watching the live stream or WebEx meeting, submit a Public Comment for items not onthe day’s agenda or comments on a specific agenda item as it is being heard, submit yourcomment to the Recording Staff using this form https://www.cityofventura.ca.gov/1829/City-Council-Meeting-Electronic-Comment- or send an email to [email protected] (upto 1000 characters). Every effort will be made to read your comment into the record, but somecomments may not be read due to time limitations. All comments received by the conclusion ofthe agenda item will be made part of the record.

5. To Provide Public Comment Live: While attending the WebEx Meeting, you will see Chat functionon your screen. You can write, "I would like to speak on Agenda Item #__" in the Q&A commentbox. During the discussion of that item, the Mayor will call for public comment. The City Clerk willannounce those requesting to comment and unmute your mic allowing you to speak. You will beheard, but not visible on screen. You will have 3 minutes to provide your comments. When youare finished, your mic will be muted.

https://www.cityofventura.ca.gov/AgendaCenter/Water-Commission-22

https://www.cityofventura.ca.gov/1236/9455/City-Council-Public-Hearing-NoticesSuppl

https://cityofventura.webex.com/cityofventura/onstage/g.php?MTID=e7b59e3808b579d79d3176597735975b6

https://www.cityofventura.ca.gov/718/Videos

https://www.cityofventura.ca.gov/1829/City-Council-Meeting-Electronic-Comment-

mailto:[email protected]



mailto:[email protected]


CALL TO ORDER – REGULAR MEETING SESSION – 5:30 PM ROLL CALL – WATER COMMISSION PLEDGE OF ALLEGIANCE

1. MINUTES Staff: Susan Rungren, General Manager RECOMMENDATION

Approve the minutes of the May 26, 2020 regular session. 2 VENTURA WATER COMMUNITY AND VENTURAWATERPURE PUBLIC

OPINION RESULTS Staff: Haili Matsukawa, Interim Management Analyst Consultant: FM3 RECOMMENDATION

Staff recommends that the Water Commission receive this written report and oral presentation on findings from a recently completed survey assessing residents' opinions and attitudes towards water issues in Ventura, including the VenturaWaterPure Project.

3. PROPOSED COMMUNICATIONS AND OUTREACH STRATEGY FOR WATER AND WASTEWATER RATES

Staff: Haili Matsukawa, Interim Management Analyst Consultant: Water Consulting, Inc. RECOMMENDATION

Staff recommends that the Water Commission receive this written report and oral presentation by Water Systems Consulting, Inc. on the proposed Communication and Outreach Strategy for Water and Wastewater Rates.

4. ALLOCATION OF COSTS FOR VENTURAWATERPURE PROJECTS

Staff: Susan Rungren, General Manager Consultant: Raftelis Financial Consultants, Inc.

https://www.cityofventura.ca.gov/DocumentCenter/View/16049/Agenda-Item-2---Draft-WC-Minutes-for-Jan-22-2019-Meeting-1






RECOMMENDATION Staff recommends that the Water Commission receive this written report and oral presentation by Raftelis Financial Consultants, Inc on the Allocation of Costs for VenturaWaterPure Projects included in the Adopted Fiscal Year 2020-2026 Capital Improvement Plan.

PUBLIC COMMENT Refer to Page 2 of the Agenda on how to submit your Public Comments electronically to the Recording Secretary. COMMISSIONER COMMUNICATIONS Per Government Code Section 54954.2(a), the Commissioner Communications section of the agenda provides the Water Commission the opportunity to ask a question for clarification, make a brief announcement, or make a brief report on his or her own activities. GENERAL MANAGER REPORT ADJOURNMENT

Grant Burton Commissioner Chair

Susan Mulligan

Commissioner Vice-Chair Nova Clite Suzanne McCombs Commissioner Commissioner Gerhard Hubner Robert McCord Commissioner Commissioner

Susan Rungren, Ventura Water General Manager Miles Hogan, Assistant City Attorney Debra Gallegos, Recording Secretary

REGULAR MEETING

TUESDAY, MAY 26, 2020, 5:30 P.M.

IN ACCORDANCE WITH THE CALIFORNIA GOVERNOR’S EXECUTIVE STAY AT HOME ORDER AND THE COUNTY OF VENTURA HEALTH OFFICER DECLARED LOCAL HEALTH EMERGENCY AND BE WELL AT HOME ORDER RESULTING FROM THE NOVEL CORONAVIRUS (COVID-19), CITY HALL IS CLOSED TO THE PUBLIC. Water Commission conducted this meeting in accordance with California Governor Newsom’s Executive Orders N-20-20 and N-35-20 and COVID-19 pandemic protocols. Commission Vice Chair Mulligan called the meeting to order at 5:57 p.m. *Commission Vice Chair Mulligan asked to move the General Manager Report before Agenda Item 3 in order to recuse herself due to possible conflict of interest. ROLL CALL – WATER COMMISSION Present: Commissioners Clite, Hubner, McCombs, McCord, and Mulligan (all via

teleconference/video conference) Absent: Commissioner Burton. WATER COMMISSION ITEMS

1. MINUTES Approve the minutes of the April 28, 2020 Regular meeting.

Members of the Public: None.






May 26, 2020 Ventura Water Commission Draft Minutes Page 2 of 4

Commissioner McCord moved to approve the recommendation. Commissioner Clite seconded the motion. The vote was as follows: AYES: Commissioners Clite, Hubner, McCombs, McCord, and Mulligan. NOES: None. Commission Vice Chair Mulligan declared the motion carried, 5-0 with Commissioner Burton absent.

*6:00 p.m. Commission Chair Burton joined the meeting (via teleconference/video conference).

2. FISCAL YEAR 2020-2026 ADOPTED WATER AND WASTEWATER CAPITAL

IMPROVEMENT PLAN PROJECTS AND RATE STUDY DISCUSSION Staff recommends that the Water Commission receive an oral presentation on

an overview of the Fiscal Year 2020-2026 Adopted Water and Wastewater Capital Improvement Plan Projects and Rate Study Discussion Members of the

Members of the Public: Burt Handy No vote.

GENERAL MANAGER REPORT COVID Update

• COVID Update as of 5/18/2020 on financial impact of Rule 2020-001 – Waived late fees = $129,000; Door Tags (no shut off, late payment notice) = $66,000; online VISA payment fee = $102

• Rule 2020-002 was issued which extended the suspension of any new customer shutoffs and new late fees for nonpayment through September 21, 2020.

• Requests for payment arrangements have remained flat. • Consumption overall is approximately the same as last year during these past few

months. Ventura does not have one or two significant high-water users that were shut down, etc.

• Continually following any possible relief for customers due to COVID-19 issues. Other Updates

• 2020 Urban Water Management Plan – RFPs for consultants were sent out April 28. The Urban Water Management Plan is required to be completed and submitted to DWR by July 1, 2021.

• 2020 Water and Wastewater Master Plans consultant interviews were conducted last week.

• The City has been awarded a $2,053,000 grant (50% funding match) from the Watersheds Coalition of Ventura County’s Integrated Regional Water Management Program for the Water Capital Improvement Projects Eastside to Midtown


Interconnection and Midtown to Westside Interconnection. These projects will provide the ability to move water from the eastside to the westside of the City to provide water for drought and peak demand periods and to meet water quality goals.

• The City’s Water and Wastewater Laboratory recently received its annual accreditation from the California Environmental Laboratory Accreditation Program though the State Water Resources Control Board. The City also received a new list of Accredited Fields of Testing (FOT) which means we will use these new and or revised test methods for analyses of regulatory samples. In total, 59 new testing parameters were added to the City’s Laboratory accreditation certification as well as 34 parameters with updated methods.

Past Council Info. Council Action 4/27/2020 – Budget Workshop #2 – Fiscal Year 2020-2021

• Waive the Ventura City Charter to complete a budget by May 1st • Approve the new budget timeline • Provide policy direction on tools to be provided to balance the General Fund –

Hiring freeze, reduce employee travel, Elimination of Cost of Living adjustments, reduce employee benefits, furloughs/reductions in hours worked, separation incentives (early retirement), etc.

January 13, 2020 Budget forecast and staff spent the next two months focusing on building a balanced budget Council Action 5/4/2020 – Approval of 2020 CWRR and Final Water Demand Factor Study, Go from Stage 3 to Stage 2 Drought status and adjust rates Council Action 5/11/2020 – Adoption of User Fees and Rates for FY 2020-2021 Council Action 5/18/2020 –

• Approval of Voluntary Employee Separation Incentive Program which is most like an early retirement option

• Approve General Services Agreement for Ventura Water Reclamation Facility Contract Laboratory Monitoring Services

• Approve General Service Agreement for On-call slip lining and closed-circuit Television Inspection services

• Utilization of the City’s 2020 State Water Project allocation with San Gorgonio, previously approved by Water Commission

• Professional Services Agreement for the State Water Interconnection Pipeline and Blending Station Projects

• FY 2020-21 Potential Use of Nontraditional Funds and Revenue Enhancements Use of Measure O fund Balance Use of fund Balance from the Internal Service funds New Cannabis Tax New Franchise Fee for Water and Water and Wastewater Utilities -Council was

not interested in this idea


Others – possible furloughs. The City Manager is meeting with unions to discuss the furloughs.

Upcoming Council – June 1 – FY 20-21 Budget Meeting with Finance Director to go over proposed budget and adjustments based on budget decisions made this information will go into the rate information Freezing positions working on possible adjusting workload or hiring internally if essential position, must meet certifications/regulatory requirements.

3. STATE WATER INTERCONNECTION PIPLELINE PROJECT UPDATE

Commission Vice Chair Mulligan stated she was recusing herself from this item because she worked on the draft State Water Interconnection Project Joint Agencies Agreement when she was employed with Calleguas Municipal Water District, and she requested that this be included in the Meeting Minutes. Commission Vice Chair Mulligan left the meeting at 7:21 p.m. Staff recommends that the Water Commission receive the oral presentation providing an update on the State Water Interconnection Pipeline Project Update.

Public: None. No vote.

PUBLIC COMMENT: None. COMMISSIONER COMMUNICATIONS: Commissioner McCombs asked that staff bring an update on the VenturaWaterPure Project and to keep the Commissioners updated on the Budget as it pertains to possible furloughs and enterprise fund updates. Next Meeting Items June 23, 2020 Rates meeting 3 – Data & Analysis for Net Zero/ROW & Pavement Obligation Update on VenturaWaterPure and Outreach for rates. ADJOURNMENT: 8:03 P.M.

Date: June 17, 2020

Agenda Item No: 2

Meeting Date: June 23, 2020

To: Ventura Water Commission From: Susan Rungren, Ventura Water General Manager Subject: Ventura Water Community and VenturaWaterPure Public Opinion

Results RECOMMENDATION Staff recommends that the Water Commission receive this written report and oral presentation on findings from a recently completed survey assessing residents' opinions and attitudes towards water issues in Ventura, including the VenturaWaterPure Project. DISCUSSION While Ventura Water has made significant progress and investments in planning for the VenturaWaterPure Project, it is a complex project that is difficult to explain. Connecting with the community, increasing awareness, and gaining broader support requires “starting where they are” and addressing perceptions, concerns, knowns, and unknowns related to making significant water supply investments. Until recently, Ventura Water has not had the benefit of a systematic analysis of public opinion regarding future water supply needs, approaches, and level of support. Professional polling results can provide insight on how to broaden understanding, address barriers, and build support. Some of the key objectives and benefits of performing a public opinion analysis include-:

• Identifying existing perceptions and understanding of water supply need; • Clarifying level of confidence in current water system, service and supplies; • Understanding willingness to pay more for diverse, improved supply; • Gauging public support for recycled water projects; • Testing messages that connect to public interests and level of understanding; • Understanding priority issues, generally, for the community; and,

STAFF REPORT

Ventura Water Community and VenturaWaterPure Public Opinion Results June 23, 2020 Page 2 of 6

• Identifying differences between demographic subgroups within the community on water issues.

From March 14 through 17, 2020, Fairbank, Maslin, Maullin, Metz & Associates (FM3) completed a random sample of 488 online and telephone interviews (on both landlines and cell phones) with registered voters in the City of Ventura. The polling completed in the City of Ventura assessed residents' opinions and attitudes towards water issues in Ventura, including the VenturaWaterPure Project. The survey found highly positive attitudes toward Ventura Water, and broad, strong and durable support for VenturaWaterPure. In addition, the polling results reflected resident’s willingness to pay as much as $20 per month additional on their water and sewer bill to support the project. Some of the key specific findings of the survey include:

A majority of respondents have favorable views of both City government and Ventura Water. Over six-in-ten respondents indicated that they have a very or somewhat favorable view of the City of Ventura Government. An additional 59% also indicated having a very or somewhat favorable view of Ventura Water. In contrast, less than a quarter (23%) indicated having unfavorable opinions of either City Government or Ventura Water (Figure 1). This datapoint is important in identifying baseline support for lead agencies, as it may impact impressions of projects and services depending on general levels of satisfaction overall.

Figure 1: Favorability Ratings of Ventura City Government and Ventura Water

13%

17%

51%

41%

16%

14%

7%

9%7%

9%

11%

Ventura City Government

Ventura Water

Very Fav. Smwt. Fav. Smwt. Unfav. Very Unfav. NHO Don't KnowTotal Fav.

63%

59%


Residents rank the number of homeless residents and the cost of housing as the most serious issues facing Ventura; water-related issues, in contrast, are considered less urgent. Eight-in-ten residents (80%) view the number of homeless residents as an “extremely” or “very serious” problem in the City of Ventura; 72% say the same for the cost of housing. In contrast, water-related issues, such as a lack of reliable water supply for future needs and local water shortages due to more frequent droughts are considered “very serious” by close to 50% of residents (Figure 2). Other water-related issues, such as the quality of drinking water, and the amount paid on water bills, rank lower.

Figure 2: Evaluation of Issues Facing the City of Ventura

Issue “Extremely” or “Very Serious” Problem

The number of homeless residents 80%

The cost of housing 72%

A lack of reliable supply of water for future needs 49%

Local water shortages due to more frequent droughts 47%

Pollution of rivers, creeks and streams 45%

Crime and drugs 42%

Outdated city infrastructure 41%

A lack of good-paying jobs 40%

The quality of drinking water 34%

The amount you pay on your water and sewer bill 30%

Given a brief description, over seven-in-ten respondents support the VenturaWaterPure Project. At the time the survey was conducted, only 17% of residents indicated they were familiar with the VenturaWaterPure Project. After hearing a brief description of the project, however, 71% of residents indicated support, with


nearly half (45%) saying they “strongly” support it. In contrast, only 12% indicated they opposed it, while 16% indicated they were unsure (Figure 3).

Figure 3: Support for VenturaWaterPure Project After Description

45%

26%

4%

9%

16%

Total Support

71%

Total Oppose

12%

Strongly support

Somewhat support

Somewhat oppose

Strongly oppose

Don’t know

Most respondents would be willing to pay an additional amount on their water and sewer bill to support the water diversification project. A 54% majority of those polled indicated they would be very or somewhat willing to pay an additional $20 on their monthly bill to support the VenturaWaterPure Project. When asked if they would be willing to pay $25 or more on their monthly bill, however, a plurality of voters indicated they would be opposed (47%). Not surprisingly, the percentage of voters indicating they would be willing to pay is greater at lower monthly rates.

Figure 4: Willingness to Pay Additional Amounts on Water and Sewage Bill

18%

21%

31%

43%

54%

25%

24%

23%

16%

15%

15%

16%

10%

8%

5%

32%

31%

29%

27%

20%

10%

8%

7%

6%

6%

$30

$25

$20

$15

$10

Very Will. Smwt. Will. Smwt. Unwill. Very Unwill. Don't Know Total Willing

Total Unwilling

43% 47%

45% 47%

54% 39%

59% 35%

69% 25%


Messaging about the need to diversify Ventura’s water sources, the multi-step process of purifying water, and securing water for future generations resonates the most with residents. More than two-in-five residents rate a range of messages as “very convincing” reasons to support the VenturaWaterPure Project, including messages focusing on:

• Ventura’s need to diversify its water supplies as existing local water sources dwindle as a result of climate change and environmental, regulatory, and legal constraints.

• • Describing VenturaWaterPure’s multi-stage process of filtering water to

ensure it is safe and free of harmful contaminants

• Stressing the need to secure a reliable supply of water for future generations and underscoring the importance of implementing the VenturaWaterPure Project to meet future water supply needs.

Overall, support for VenturaWaterPure remains consistent - with a sizable majority in favor- as residents receive more information about the project. After residents were asked about their willingness to pay and received messages about the project, 69% remained supportive. There was a modest four-point increase in opposition. Providing additional information about the project further solidifies its already-broad base of support.

Figure 5: Support for VenturaWaterPure Project

45%

26%

4%

9%

16%

Total Oppose

12%

Strongly support

Somewhat support

Somewhat oppose

Strongly oppose

Don’t know

46%

23%

4%

11%

15%

Total Oppose

16%

After Supportive StatementsAfter Description

Total Support

69%

Total Support

71%

Ventura Water Community and VenturaWaterPure Public Opinion Results June 23, 2020 Page 6 of 6 Overall the survey results show broadly positive views of the City and its water and wastewater utility-Ventura Water; a broad public recognition of the need to secure additional water supplies; an impressive base of strong, and durable support for VenturaWaterPure. Staff intends to use this statistically valid data to replace anecdotal evidence of public views to guide and facilitate future communication strategies and messaging for VenturaWaterPure. Prepared by Craig Jones - Management Analyst II

Date: June 16, 2020

Agenda Item No: 3


To: Ventura Water Commission From: Susan Rungren, Ventura Water General Manager Subject: Proposed Communications and Outreach Strategy for Water and

Wastewater Rates RECOMMENDATION Staff recommends that the Water Commission receive this written report and oral presentation by Water Systems Consulting, Inc. on the Proposed Communications and Outreach Strategy for Water and Wastewater Rates. DISCUSSION As Ventura Water moves forward with the cost of service and rate design study to ensure fair and equitable water and wastewater rates, a Water Rates Communications and Outreach Strategy is needed to support public engagement, community awareness, and transparency. Active communication during the water rate design process is necessary to build public trust and support. The proposed plan will support public engagement and community awareness through digital communications (social media, E-newsletter), public presentations (Community Council meetings, Water Commission), and online polling efforts. Educational materials, including frequently asked questions, website enhancements, and informational graphics, will be developed to support timely communications and public understanding. As part of the Water Rates Communications Outreach Strategy, staff is recommending the formation of a Citizen Stakeholder Group (CSG) that will provide community perspective and timely input for decision makers. The group will include 15-18 representatives from key stakeholders, including: land-use groups, environmental organizations, economic development coalitions, major industrial users, integrated water management groups, and more. Virtual workshops will be facilitated by Water Systems Consulting, Inc. and aligned with major milestones in the water rates study. The design of the workshops and work to

STAFF REPORT

Proposed Communications and Outreach Strategy for Water and Wastewater Rates June 23,2020 Page 2 of 2

form the CSG will be done in coordination with a Taskforce that we recommend includes a minimum of one Water Commission representative, a Raftelis representative and a team of Ventura Water staff.

We recommend the CSG remain intact for the next 12-24 months to inform the public on other significant Ventura Water projects and policies, such as engaging in discussions and education regarding VenturaWaterPure.

Attached is a Communications Workplan that outlines initiatives and tasks related to the Citizen Stakeholder Group, public communications, and the integration of VenturaWaterPure outreach/education. This workplan represents the continuation of our partnership with Water Systems Consulting, Inc. for outreach support.

Prepared by: Haili Matsukawa, Interim Management Analyst

Attachments: A. Ventura Water Communications Workplan B. Presentation

Objectives Initiatives Actions (next 90 days) June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July

a. Present strategy to WCb. Form CSG and confirm participation

CSG that meets regularly and represents various perspectives. c. Create Worskhop Plan and TopicsTest messages and gain input on messaging from CSG. d. Create Workshop Materials

Maintain CSG beyond rate structure input and education, utilizing for VWP

e. Present Rate Comm. Strategy Council?

f. CSG Workshopg. CSG pre-workshop comm; post workshopreport outs/presentations

Utilize website hub as central to information sharing

a. Enhance rate website page withbackground information graphics, FAQS andpolling features

Inform and engage Community Council Groups- present Rates 101 & education

b. Inform community to be part of thediscussion with online polling, social media,FAQs, and e-newsletter updates updates

Create online polls and utilize existing values information from VWP polling and WC surveys to engage public opinion

c. Create and test master message on WHYrate structure review & share internally

Get an official City voice behind the messaging and regular updates

d. Present to Council and WC regularupdates and needs

Ventura Water Communications Workplan Last Update: June 15, 2020

Timely information sharing with community regarding rate study process to gain community awareness and support.

20212020

Provide WC and Council with direct perspective and ongoing input from community representatives

Rates Education and Outreach

CSG Engagement and Participation

Formation of Citizen Stakeholder Group and Taskforce to promote Water Commission and City Council understanding of community input and provide oppt for education, message testing, timely general outreach.

Active Taskforce guides efforts

ATTACHMENT A

a. Understand new VWP delivery scheduleand how it impacts comm workplanb. Share VWP quality video publicly

c. Create Demo facility plansd. Engage CSG on VWP

e. Share poll resultsf. Provide a master message guide forinternal leaders

g. Regular Council and Commission Updates

VenturaWaterPure Outreach

Build on efforts to date to increase community's project awareness, understanding, and support.

Provide education on water quality and treatment process to build confidence and awareness of reuse water solution.

Share public opinion and build upon poll results/continue engagement to share the VWP story with others.

Continued VenturaWaterPure Outreach that builds upon messaging, outreach and education put in place in 2018-19.

6/18/2020

1

1

WATER & WASTEWATER RATE STUDY

Communications & Outreach Strategy

2

Proactively engaging the public during rate structure development builds trust and support.

Ventura Water Values Transparency

1

2

6/18/2020

2

Opportunitiesfor outreach & engagement

2-Way Engagement with Partners, Public & Commission/ Council

Consistent Messaging Across City

Understand Perspectives of Stakeholders & Deliver Community-Value-Focused ResultsGet Input Supporting

Timely Decision Making

3

New Water and Wastewater Rates are proposed for

July 2021 to support area water resiliency:

supply, quality, compliance, and environmental protection.

4

3

4

6/18/2020

3

5

This is a critical period for OUTREACH

#1 Community Workshop

Oct 2020WC Final Reviewof Rate Structure Design & Recommendation to Council

June 2020Now!

Jan 2021Council Receives Recommendation

Feb 2021Prop 218 mailed

April 2021Adopt new rates

$

July 2021Implement New WaterRates

Engagement – Discussion – Online Polling - Education - Workshopping

#2 Community Workshop

Open House

6

What’s next?1. Formation of Citizen Stakeholder Group

to promote Water Commission and City Council understanding of community input.

2. Provide timely rate study process information with general public to gain community awareness and support.

5

6

6/18/2020

4

Targeted Audiences

TARGETED

ENGAGEMENT

Citizen Stakeholder Group

General Public

City Water Commission

City Council

CSG

P

CCCWC

15‐18 representatives; Provide opportunity for education, message testing, timely general outreach.

Interested parties; inform and engage in

conversations

Advisory group, recommend policy decisions

Make and implement policy decisions

7

Approach to Citizen Stakeholder Group (CSG) Engagement

Insight for decision makers

GREATESTFOCUS!

Education & Awareness of Water Needs

Values-Based Conversation

Community Perspective

7

8

6/18/2020

5

HIGH INFLUENCEHIGH STAKES

MOST INFLUENTIALOR POWERFUL

LEAST INFLUENTIALOR POWERFUL

LEA

ST A

FFEC

TED

BY Y

OU

R D

ECIS

ION M

OST A

FFECTED

BY Y

OU

R D

ECISIO

N

LOW INFLUENCEHIGH STAKES

HIGH INFLUENCELOW STAKES

LOW INFLUENCELOW STAKES

Prioritizing Stakeholders

9

10

Targeted Stakeholder Categories

General PublicCitizen group, community leaders

Land Use

Environmental Organizations

Human Rights to Water

Economic DevelopmentChamber of Commerce, Economic Development Collaborative

Integrated Water Management

Water Commission Member

Major Industrial Users

9

10

6/18/2020

6

We are preparedno matter the restrictionsFocused virtual workshops

Hosted video walk throughs

Real-time website updates

11

12

What’s next?1. Formation of Citizen Stakeholder Group

to promote WC and Councilunderstanding of community input.

2. Provide timely rate study processinformation with general public to gaincommunity awareness and support.

11

12

6/18/2020

7

Approach to General Public Engagement

Enhance rate website page with background information graphics, FAQS and polling features

Inform community to be part of the discussion with online polling, social media, and e‐newsletter updates

Create and test master message on WHY rate structure review & share internally

Engage Community Council Groups to support communications efforts

13

General community outreach approach will provide education and awareness of rate structure changes

Education & Awareness

Values-BasedInput

Input to Inform Decisions

14

13

14

6/18/2020

8

Water Commission’s support on outreach strategy

Approve Formation of CSG and Participation of WC Leader in Taskforce

01Engage with public through outreach campaign

02Hold first Citizen Stakeholder Group Workshop in Fall 2020

03

15

15

Date: June 16, 2020

Agenda Item No: 4


To: Ventura Water Commission

From: Susan Rungren, Ventura Water General Manager

Subject: Allocation of Costs for VenturaWaterPure Projects

RECOMMENDATIONS

Staff recommends that the Water Commission receive this written report and oral presentation by Raftelis Financial Consultants, Inc on the Allocation of Costs for VenturaWaterPure Projects included in the Adopted Fiscal Year 2020-2026 Capital Improvement Plan.

PREVIOUS MEETINGS

May 26, 2020 – The Water Commission received an oral presentation on an overview of the Fiscal Year 2020-2026 Adopted Water and Wastewater Capital Improvement Plan Projects and Rate Study Discussion.

April 28, 2020 – The Water Commission received a written and oral presentation by Raftelis Financial Consultants, Inc. on the 2020 Rate Study Overview for the Water and Wastewater Enterprise Funds.

November 21, 2019 – The Water Commission received a written and oral presentation of the draft FY 2020-2026 CIP for water and wastewater projects.

DISCUSSION

Ventura Water along with Public Works developed the FY 2020-2026 Capital Improvement Plan (CIP) for both Water and Wastewater funds to address current and future system needs. The CIP which was adopted by City Council on March 30, 2020 with an effective date of July 1, 2020, will be a main driver in establishing current and future rate adjustments.

STAFF REPORT

Allocation of Costs for VenturaWaterPure Projects June 23, 2020 Page 2

The adopted CIP is a six-year plan and is split by work plan projects and pending projects within each fund. Work plan projects are identified within the first six-years and have fully funded, partially funded and unfunded projects. Pending projects are beyond the first six-years and are unfunded. While the adopted CIP is a six-year plan the rate study will be a ten-year spending plan.

The Adopted FY 2020 – 2026 CIP, includes several projects that make up VenturaWaterPure. Those projects include the following:

Fund 71 – Wastewater Project ID #96935 – Wastewater Plant – Purification Facility Land Acquisition Project ID #96940 – Recycled Waterline – Purewater Pipelines Project ID #96945 – Wastewater Plant – Advanced Purification Facility Project ID #96938 – Brine Line and Ocean Outfall Project ID #96939 – Wastewater Plant – Wetlands Improvements

Fund 72 – Water Project ID #73122 – Pump Station – Ventura Water Pure Project ID #97934 – Treatment – Oxnard Plain Aquifer Storage

At this meeting, Raftelis Financial Consultants, Inc. will provide an overview of the allocation of costs associated with the VenturaWaterPure projects. Included will be a discussion on how these proposed projects and estimated costs could impact water and wastewater rates.

A multi-step process is applied as follows: • Develop an allocation basis for each project• Allocate estimated costs to Water (Fund 72), Wastewater (Fund 71) or some split

of both• Determine funding sources and financial assumptions• Calculate the total estimated project costs

Once the total estimated project costs are calculated, and allocations to Fund 72 and Fund 71 are determined, the effects on water and wastewater rates can be evaluated. There are limitations in calculating the effect on rates such as required funding for other CIP projects, operating and maintenance expenses, reserve funding, other fees that have been collected that will offset costs and possible grant funding.

Prepared by Susan Rungren, General Manager

Attachment A – PowerPoint Presentation

6/22/2020

1

Ventura Water

Water & Wastewater Rate Study ‐VWP Preliminary Project Cost AllocationsWater Commission Meeting – June 23, 2020

City of Ventura

RATE STUDY AT A GLANCE

Rate Setting Fram ework

•Financial goals andpolicies

•Pricing objectives

Financial Plan

•Evaluation of CIP andfinancing options

•Cash flow analysisfor financial sufficiency

Cost of Service & Rate Design

•Cost allocations•Rate design

Rate calculations Custom er im pact analyses

Final Rate Adoption

•Report•Prop 218 Notice•Public Hearing

2

1

2

ATTACHMENT A - AGENDA ITEM 4 PRESENTATION

6/22/2020

2

CAPITAL IMPROVEMENT PLAN (CIP) PROCESS - VWP

What quantity/quality of service must be provided?

What infrastructure is

required?

How should we allocate and fund projects?

How will this affect

customers?

QUALITY AND QUANTITY OF SERVICE

• Consent Decree› Reduce current discharge by 50‐100%

– Currently reviewing phased discharge reduction approach

– Continued Discharge Level (CDL) of 1.9 mgd by 2025

– CDL reduced to 0‐0.5 mgd by 2030

› Currently 5‐6 mgd

› Requires new discharge location (All remaining flows must pass through a natural treatment wetlands prior to discharge)

• Change in diversion/discharge requires at least 50% put to beneficial use

• Quantity of water supply at max diversion: 5,400 AFY› New water for development

› Increased reliability for existing customer base4

3

4

6/22/2020

3

WHAT INFRASTRUCTURE IS REQUIRED

Project Purpose

LANDAcquisition for construction and operation of the Advanced Water Purification Facility (AWPF)

PIPELINEConveyance: 1. VWRF to outfall, 2. VWRF to AWPF, 3. AWPF to VWRF to Outfall, and 4. Purified water from the AWPF to the well fields

AWPF Purification of treated WWTP effluent

OUTFALLOcean discharge pipeline for 1. WWTP effluent and 2. AWPF concentrate

PUMP STATIONSElevation lift for 1. VWRF to outfall, 2. VWRF to AWPF, 3. AWPF to VWRF to Outfall, and 4. Purified water from the AWPF to well fields

INJECTION WELLS Wells to pump AWPF water into the aquifer

WETLANDS Restoration of native estuarine system

5

HOW SHOULD IT BE FUNDED

• Multi‐Step Process1. Develop allocation bases for each VWP project component

2. Allocate project costs to water and wastewater utilities using most appropriate basis

3. Determine financing sources and financing assumptions

4. Calculate total project costs (including financing costs)

6

5

6

6/22/2020

4

ALLOCATION BASIS

• W ater = Benefits water only• W astewater = Benefits wastewater only• Indirect = Based on direct allocation of AW PF • Beneficial Use of W ater = M inim um of 50% of discharge needs to be put to beneficial use

• Conveyance Distance = Length of pipelines benefiting water versus wastewater

• Outfall Usage = Flow ratio required between AW PF and VW RF

• Lift = Share of pum ping stations benefiting water versus wastewater

7

ALLOCATION BASES

Basis Water Wastewater

Water 100% 0%

Wastewater 0% 100%

Indirect AWPF AWPF

Beneficial Use of Water 50% 50%

Conveyance Distance 67% 33%

Outfall Usage 50% 50%

Lift 50% 50%

8

7

8

6/22/2020

5

PRELIMINARY ALLOCATION RECOMMENDATION

Project BasisLAND Indirect

PIPELINE Conveyance Distance

AWPF Beneficial Use of Water

OUTFALL Outfall Usage

PUMP STATIONS Lifts

INJECTION WELLS Water

WETLANDS Wastewater

9

PRELIMINARY ALLOCATION RECOMMENDATION

Project Basis Project Cost Water WastewaterLAND Indirect $5,000,000 $2,500,000 $2,500,000

PIPELINE Conveyance Distance $30,800,000 $20,636,000 $10,164,000

AWPF Beneficial Use of Water $106,500,000 $53,250,000 $53,250,000

OUTFALL Outfall Usage $ 41,500,000 $20,750,000 $20,750,000

PUMP STATIONS Lifts $11,500,000 $5,750,000 $5,750,000

INJECTION WELLS Water $ 29,300,900 $29,300,900 $0

WETLANDS Wastewater $12,300,000 $0 $12,300,000

TOTAL $236,900,900 $132,186,900 $104,714,000

% Allocation 56% 44%

10

9

10

6/22/2020

6

FINANCING ASSUMPTIONS

FUNDING SOURCE

% of VWP

Interest Rate

TermIssuance Costs

WIFIA 49% 2% 35 0%*

SRF** 31% 2% 30 0%

Bonds 20% 5% 30 2%

11

• Repayment Assumptions for calculations› WIFIA FY 2026‐27› SRF FY 2021‐22› Bonds FY 2024‐25

• Land and Wetlands projects assumed to be cash (PAYGO) funded

• *WIFIA application and processing fees estimated at $400k

• **FY 2021‐22 is best case scenario. Dependent on loan processing

DEBT SCHEDULE WITH FINANCING ASSUMPTIONS

12

FY 2021‐22

FY 2022‐23

FY 2023‐24

FY 2024‐25

FY 2025‐26

FY 2026‐27

FY 2027‐28

WIFIA $4,304,415 $4,304,415

SRF $3,039,601 $3,039,601 $3,039,601 $3,039,601 $3,039,601 $3,039,601 $3,039,601

Bonds $2,915,378 $2,915,378 $2,915,378 $2,915,378

Total $3,039,601 $3,039,601 $3,039,601 $5,954,979 $5,954,979 $ 10,259,394 $ 10,259,394

PAYGO $5,000,000* $12,300,000**

*Land acquisition for AWPF**Wetlands project in FY 2027‐28 or later

11

12

6/22/2020

7

TOTAL PROJECT COSTSWITH FINANCING ASSUMPTIONS

13

Financed PAYGO Total

Sum of Payments (Total) $ 329,303,904 $ 17,300,000 $ 346,603,904

Sum of Payments (Water) $ 194,472,802 $ 2,500,000 $ 196,972,802

Sum of Payments (Wastewater) $ 134,831,101 $ 14,800,000 $ 149,631,101

14

VW P Im pacts – w/out O ffsetting Revenue Source

13

14

6/22/2020

8

HOW WILL THIS AFFECT CUSTOMERS? IMPACTS – FIXED OPTION

15

WATERFY

2021‐22FY

2022‐23FY

2023‐24FY

2024‐25FY

2025‐26FY

2026‐27VWP Debt Service (Water) $ 1,696,048 $ 1,696,048 $ 1,696,048 $ 3,322,783 $ 3,322,783 $ 5,724,577

Monthly $/Eq. Meter (3/4”) $ 2.97 $ 2.97 $ 2.97 $ 5.81 $ 5.81 $ 10.01

WASTEWATERFY

2021‐22FY

2022‐23FY

2023‐24FY

2024‐25FY

2025‐26FY

2026‐27VWP Debt Service (Wastewater) $ 1,343,552 $ 1,343,552 $ 1,343,552 $ 2,632,196 $ 2,632,196 $ 4,534,817

Monthly $/Account $ 2.09 $ 2.09 $ 2.09 $ 4.09 $ 4.09 $ 7.05

HOW WILL THIS AFFECT CUSTOMERS? IMPACTS – VARIABLE OPTION

16

WATERFY

2021‐22FY

2022‐23FY

2023‐24FY

2024‐25FY

2025‐26FY

2026‐27VWP Debt Service (Water) $ 1,696,048 $ 1,696,048 $ 1,696,048 $ 3,322,783 $ 3,322,783 $ 5,724,577

$/hcf water $ 0.28 $ 0.28 $ 0.28 $ 0.54 $ 0.54 $ 0.94

Average Monthly Bill (9 hcf) $ 2.50 $ 2.50 $ 2.50 $ 4.90 $ 4.90 $ 8.45

WASTEWATER FY 2021‐22

FY 2022‐23

FY 2023‐24

FY 2024‐25

FY 2025‐26

FY 2026‐27

VWP Debt Service (Wastewater) $ 1,343,552 $ 1,343,552 $ 1,343,552 $ 2,632,196 $ 2,632,196 $ 4,534,817

$/hcf flow $ 0.31 $ 0.31 $ 0.31 $ 0.61 $ 0.61 $ 1.05


15

16

6/22/2020

9

17

VW P Im pacts – w/O ffsetting Revenue Source

OFFSETTING REVENUE SOURCES

• Water: Net Zero Fee› Estimated demand offset fee revenue of $700,000 per year

– Volatile growth year to year– Based on four year historical average– Based on existing fee calculation

› Raftelis will be updating Net Zero fee as part of the rate study

• Wastewater: Estuary Protection Charge › 10% charge on total wastewater bill› Generates approximately $2.3 million per year› Estuary Protection Fund balance as of 6/18/2020 is $12.0 million

18

17

18

6/22/2020

10

ANNUAL DEBT SERVICE AND OFFSETTING REVENUE SOURCES

19

FY 2021‐22

FY 2022‐23

FY 2023‐24

FY 2024‐25

FY 2025‐26

FY 2026‐27

FY 2027‐28

VWP Debt Service ‐ Water $ 1,696,048 $ 1,696,048 $ 1,696,048 $ 3,322,783 $ 3,322,783 $ 5,724,577 $ 5,724,577

(Net Zero Fee Estimate) $ (700,000) $ (700,000) $ (700,000) $ (700,000) $ (700,000) $ (700,000) $ (700,000)

Net Debt Service $ 996,048 $ 996,048 $ 996,048 $ 2,622,783 $ 2,622,783 $ 5,024,577 $ 5,024,577

FY 2021‐22

FY 2022‐23

FY 2023‐24

FY 2024‐25

FY 2025‐26

FY 2026‐27

FY 2027‐28

VWP Debt Service ‐ Wastewater $ 1,343,552 $ 1,343,552 $ 1,343,552 $ 2,632,196 $ 2,632,196 $ 4,534,817 $ 4,534,817

(Estuary Fee Estimate) $ (2,300,000) $ (2,300,000) $ (2,300,000) $ (2,300,000) $ (2,300,000) $ (2,300,000) $ (2,300,000)

Net Debt Service $ (956,448) $ (956,448) $ (956,448) $ 332,196 $ 332,196 $ 2,234,817 $ 2,234,817

• VWP Water Allocation partially funded by Net Zero Fee

• VWP Wastewater Allocation partially funded by Estuary Protection Charge

HOW WILL THIS AFFECT CUSTOMERS? IMPACTS – FIXED OPTION

20

WATERFY

2021‐22FY

2022‐23FY

2023‐24FY

2024‐25FY

2025‐26FY

2026‐27VWP Net Debt Service (Water) $ 996,048 $ 996,048 $ 996,048 $ 2,622,783 $ 2,622,783 $ 5,024,577

Monthly $/Eq. Meter (3/4”) $ 1.74 $ 1.74 $ 1.74 $ 4.59 $ 4.59 $ 8.79

WASTEWATERFY

2021‐22FY

2022‐23FY

2023‐24FY

2024‐25FY

2025‐26FY

2026‐27VWP Net Debt Service (Wastewater)* $ (956,448) $ (956,448) $ (956,448) $ 332,196 $ 332,196 $ 2,234,817

Monthly $/Account N/A N/A N/A $ 0.52 $ 0.52 $ 3.47

*Savings in FY 2021‐22 through FY 2023‐24 used to offset future rate increases

19

20

6/22/2020

11

HOW WILL THIS AFFECT CUSTOMERS? IMPACTS – VARIABLE OPTION

21

WATERFY

2021‐22FY

2022‐23FY

2023‐24FY

2024‐25FY

2025‐26FY

2026‐27VWP Net Debt Service (Water) $ 996,048 $ 996,048 $ 996,048 $ 2,622,783 $ 2,622,783 $ 5,024,577

$/hcf water $ 0.16 $ 0.16 $ 0.16 $ 0.43 $ 0.43 $ 0.82


WASTEWATERFY

2021‐22FY

2022‐23FY

2023‐24FY

2024‐25FY

2025‐26FY

2026‐27VWP Net Debt Service (Wastewater)* $ (956,448) $ (956,448) $ (956,448) $ 332,196 $ 332,196 $ 2,234,817

$/hcf flow $ (0.22) $ (0.22) $ (0.22) $ 0.08 $ 0.08 $ 0.52

Average Monthly Bill (9 hcf) N/A N/A N/A $ 0.69 $ 0.69 $ 4.64

*Savings in FY 2021‐22 through FY 2023‐24 used to offset future rate increases

CALCULATED IMPACTS -LIMITATIONS

• Impacts are for VWP projects only› Do not consider other CIP, reserve funding, or operating costs

› Realistic impacts will not be known until total revenue needs are identified and all costs are allocated to the rate structures (cost of service)

• Impacts do not consider grant funding› City anticipates grant award in the range of $20 million

• Calculated impacts are representative of single family residential customers, not other customer classes with different water use characteristics, meter sizes, and wastewater strengths

22

21

22

6/22/2020

12

CALCULATED IMPACTS -LIMITATIONS

• Impacts do not consider existing balance of offsetting revenue sources› ~$2.4 million net zero balance

› $12.0 million Estuary Protection Fund balance

• Revenue Offsets› Estuary protection charge is a stable source because it is based on rate revenue

› Net Zero developer fees are highly variable and an unstable source of revenue since it is growth dependent

23

24

Raftelis is a Registered Municipal Advisor within the meaning as defined in Section 15B (e) of the Securities Exchange Act of 1934 and the rules and regulations

promulgated thereunder (Municipal Advisor Rule).

However, except in circumstances where Raftelis expressly agrees otherwise in writing, Raftelis is not acting as a Municipal Advisor, and the opinions or views contained herein are not intended to be, and do not constitute

“advice” within the meaning of the Municipal Advisor Rule.

Thank You!

23

24

regular meeting tuesday, june 23, 2020, 5:30 p.m

Documents