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Notice of Special Meeting BOARD OF DIRECTORS EAST BAY MUNICIPAL UTILITY DISTRICT 375 - 11th Street, Oakland, CA 94607 Office of the Secretary: (510) 287-0440 Notice of Special Meeting FY22 and FY23 Budget Workshop #2 Tuesday, March 23, 2021 9:00 a.m. **Virtual** At the call of President Doug A. Linney, the Board of Directors has scheduled a Budget Workshop for 9:00 a.m. on Tuesday, March 23, 2021. Due to COVID-19 and in accordance with the most recent Alameda County Health Order, and with the Governor’s Executive Order N-29-20 which suspends portions of the Brown Act, this meeting will be conducted by webinar or teleconference only. In compliance with said orders, a physical location will not be provided for this meeting. These measures will only apply during the period in which state or local public health officials have imposed or recommended social distancing. The Board will meet in workshop session to review the proposed Fiscal Year 2022 (FY22) and Fiscal Year 2023 biennial budget, rates, operating and capital priorities, and staffing; the proposed FY22 System Capacity Charge and FY22 Wastewater Capacity Fee; and will receive follow-up information from the January 26, 2021 Budget Workshop #1. Dated: March 18, 2021 _______________________________ Rischa S. Cole Secretary of the District W:\Board of Directors - Meeting Related Docs\Notices\Notices 2021\032321_FY22_FY23 Budget Workshop 2.docx This page is intentionally left blank. BOARD OF DIRECTORS EAST BAY MUNICIPAL UTILITY DISTRICT 375 - 11th Street, Oakland, CA 94607 Office of the Secretary: (510) 287-0440 AGENDA Special Meeting FY22 and FY23 Budget Workshop #2 Tuesday, March 23, 2021 9:00 a.m. **Virtual** Location Due to COVID-19 and in accordance with the most recent Alameda County Health Order, and with the Governor’s Executive Order N-29-20 which suspends portions of the Brown Act, this meeting will be conducted by webinar or teleconference only. In compliance with said orders, a physical location will not be provided for this meeting. These measures will only apply during the period in which state or local public health officials have imposed or recommended social distancing. Board members will participate via webinar or teleconference ***Please see appendix for public participation instructions*** ROLL CALL: PUBLIC COMMENT: The Board of Directors is limited by State law to providing a brief response, asking questions for clarification, or referring a matter to staff when responding to items that are not listed on the agenda. DISCUSSION: 1. Staff will present the proposed Fiscal Year 2022 (FY22) and Fiscal Year 2023 biennial budget, rates, operating and capital priorities, and staffing; the proposed FY22 System Capacity Charge and FY22 Wastewater Capacity Fee; and will provide follow-up information from the January 26, 2021 Budget Workshop #1. (Skoda) ADJOURNMENT: Disability Notice If you require a disability-related modification or accommodation to participate in an EBMUD public meeting please call the Office of the Secretary (510) 287-0404. We will make reasonable arrangements to ensure accessibility. Some special equipment arrangements may require 48 hours advance notice. Document Availability Materials related to an item on this agenda that have been submitted to the EBMUD Board of Directors within 72 hours prior to this meeting are available for public inspection in EBMUD’s Office of the Secretary at 375 11th Street, Oakland, California, during normal business hours, and can be viewed on our website at www.ebmud.com. W:\Board of Directors - Meeting Related Docs\Workshop Agendas 2021\032321_FY22_FY23 Budget Workshop 2.doc APPENDIX FY22 and FY23 Budget Workshop #2 Tuesday, March 23, 2021 9:00 a.m. EBMUD public Board meetings will be conducted via Zoom. Board workshops are recorded, live-streamed, and posted on the District’s website. Please visit this page beforehand to familiarize yourself with Zoom. https://support.zoom.us/hc/en-us/articles/201362193-Joining-a-Meeting Online https://ebmud.zoom.us/j/94804788254?pwd=Z2duWU9RZzVqb3RMd1RlNXVISjNsUT09 Webinar ID: 948 0478 8254 Passcode: 467920 By Phone Telephone: 1 669 900 6833 Webinar ID: 948 0478 8254 Passcode: 467920 International numbers available: https://ebmud.zoom.us/u/acMN6fbEoB Providing public comment The EBMUD Board of Directors is limited by State law to providing a brief response, asking questions for clarification, or referring a matter to staff when responding to items that are not listed on the agenda. If you wish to provide public comment please: • Use the raise hand feature in Zoom to indicate you wish to make a public comment https://support.zoom.us/hc/en-us/articles/205566129-Raising-your-hand-in-a-webinar o If you participate by phone, press *9 to raise your hand • When prompted by the Secretary, please state your name, affiliation if applicable, and topic • The Secretary will call each speaker in the order received • Comments on non-agenda items will be heard at the beginning of the meeting • Comments on agenda items will be heard when the item is up for consideration • Each speaker is allotted 3 minutes to speak; the Board President has the discretion to amend this time based on the number of speakers • The Secretary will keep track of time and inform each speaker when his/her allotted time has concluded To observe the workshop, please visit: https://www.ebmud.com/about-us/board-directors/board-meetings/ EAST BAY MUNICIPAL UTILITY DISTRICT DATE: March 18, 2021 MEMO TO: Board of Directors THROUGH: Clifford C. Chan, General Manger FROM: Sophia D. Skoda, Director of Finance SUBJECT: Budget Workshop #2 – March 23, 2021 and Follow-up from Budget Workshop #1 SUMMARY Budget Workshop #2, scheduled on March 23, 2021, will review the proposed Fiscal Year 2022 (FY22) and 2023 (FY23) budget, rates, operating and capital priorities, staffing, and provide responses to questions raised during the January 26, 2021 Budget Workshop #1. DISCUSSION During Budget Workshop #1, staff reviewed the approach to developing the FY22 and FY23 budget and rates, the rate increase assumptions, operating and capital priorities, staffing, and issues raised at the November 24, 2020 System Capacity Charge Update (SCC) Workshop. The impacts of the pandemic on District operations, customers, and the regional economy were discussed at Budget Workshop #1 and were considered in preparing the proposed FY22 and FY23 biennial budget and rates. The proposed biennial budget balances the need to be cautious, flexible, and realistic to respond to the changing economic landscape, as the long-term effects of the pandemic and recovery are unknown. The proposed rate increases are four percent for FY22 and four percent for FY23 for both water and wastewater. The proposed water rates support enhanced water affordability through lower rate increases than previously projected. There is no change for the wastewater rates from previously projected. These rate increases will allow the District to continue with critical maintenance activities, infrastructure improvements, meet long-term financial stability goals, and be responsive to customers impacted by the pandemic. During Workshop #2, staff will present the proposed FY22 and FY23 biennial budget, rates, fees and charges. Attachments to this memo include the workshop presentation, two volumes of the proposed budget document, and another memo on the FY22 and FY23 Recommended Revisions to the Water and Wastewater Systems’ Schedule of Rates and Charges Subject to Proposition 218 which will be covered in more detail in the Biennial Report and Recommendation of the General Manager Fiscal Years 2022 and 2023 Revisions to the Water and Wastewater System Budget Workshop No. 2 – March 23, 2021 and Follow-up from Budget Workshop #1 March 18, 2021 Page 2 Schedule of Rates and Charges, Capacity Charges, and Other Fees to be filed at the May 11, 2021 Board meeting. Unless the Board requests additional information, this workshop will be the last before the issuance of the Proposition 218 notice. Follow-up to Questions Raised at Budget Workshop #1 Below are responses to the questions raised by the Board during Budget Workshop #1. Budget Workshop #2 will include a presentation in response to questions from Budget Workshop #1 on the fully-manned and operated (FM&O) and consultant contracts. Other Agencies Actions for Lower or no Rate Increases in FY21 During Budget Workshop #1, staff reviewed the actions of other water and wastewater agencies who took either no rate action or a rate action lower than had been anticipated as a result of the pandemic. Below is a summary of actions the agencies have taken: • Marin Municipal Water District (MMWD): Voted to delay a four percent FY21 increase for nine months. MMWD put in place a hiring freeze, slowed down and/or delayed purchases for the replacement of vehicles and capital equipment, deferred travel and training, and reduced planned overtime costs. • Zone 7 Water Agency: Voted to not implement a 6.7 percent rate increase for FY21. Zone 7 filled their budget gap using one-time savings and deferral of some capital work. • San Francisco Public Utilities Commission (SFPUC): Voted to not increase rates to its wholesale customers in FY21. SFPUC has not had large capital cuts to projects and budget gaps have been filled by higher-than-projected water sales and lower-than- projected debt expenses. • Alameda County Water District (ACWD): Voted to not increase rates for calendar year 2021. ACWD was able to meet budget gaps without cuts as reserves were available to close these gaps. They noted that conservative assumptions on water demand and full spending in capital and operating budgets have allowed the build-up of sufficient reserves to meet the gaps. ACWD also did not implement previously projected increased payoff of pension and Other Post-Employment Benefits liabilities. • North Marin Water District (NMWD): Voted to delay FY21 rate increase by three months.
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