08-23-2021 BPU RPT 06 - Laserfiche WebLink

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W A T E R ENERGY I LIFE RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B I I C U I I I I I I F S BOARD OF PUBLIC UTILITIES DATE: AUGUST 23, 2021 SUBJECT: REVISIONS TO REAL PROPERTY FINANCIAL MANAGEMENT POLICY TO INCLUDE PROVISIONS OF ASSEMBLY BILL 1486 AND RECOMMEND THE REAL PROPERTY FINANCIAL MANAGEMENT POLICY BE UPDATED EVERY FIVE YEARS ISSUES: Consider approving revisions to the Riverside Public Utilities Real Property Financial Management Policy to include the provisions of Assembly Bill 1486 and for the Policy be updated every five years. RECOMMENDATIONS: That the Board of Public Utilities: Approve revisions to the Riverside Public Utilities Real Property Financial Management Policy to include the provisions of Assembly Bill 1486; and 2. Approve staff's recommendations to update the Real Property Financial Management Policy every five years, rather than every two years. CUSTOMER RELATIONS/FINANCE COMMITTEE RECOMMENDATIONS: On June 21, 2021, the Customer Relations/Finance Committee with Vice Chair Crohn and Member Cherney present, considered the recommendation to adopt revisions to the Riverside Public Utilities (RPU) Real Property Financial Management Policy to include the provisions of Assembly Bill (AB) 1486, and to update the Real Property Financial Management Policy every five years, rather than every two years. After discussion, the committee requested the following be included in the Real Property Financial Management Policy: 1) clarification that property sales return to the appropriate enterprise fund; 2) Section 6 — Financial Valuation of Real Property be revised to exclude specific percentages and allow the Policy to be more timeless; and 3) how does AB 1486 impact the Northside Specific Plan. The Committee unanimously voted to forward the revisions to the Policy for AB 1486 and the five-year update to the Board of Public Utilities (Board). BACKGROUND: On November 21, 2014 the Board adopted the RPU Real Property Financial Management Policy