 are we good? I think we're good. Welcome to the March 5th meet 2024 meeting of Soko Creek Water District Board of Directors. Calling the meeting to order. Roll call please. Roll call. Director Balboni. Present. Vice President Luther. Present. Director LeHue. Director Christensen. And President Jaffee. Present. Okay so no public hearings. Correct. So this is opportunity for very members to remove items from the consent consent agenda. Yeah I wanted to please remove 4.4. Okay 4.4 Okay yeah thank you. We might have somebody in the audience who wants to speak on this. On the items besides 4.4 and the consent agenda. All right Becky you are on. Thank you. My name is Becky Steinberger. I do have comment on item 4.5 regarding the construction of the Tennyson Lane Well project. I did receive a notice from your staff Mr. Pollard about this and I sent him several questions to which he did not respond so I've sent it to your board. I have a lot of concerns about the impacts on the neighborhood. I see that there will be a very high noise wall put up. How is that going to be supported? Is it going to be metal posts pounded in the ground like what happened at the Willowbrook injection well that very much disturbed the residents in the area because it went all night. And I guess the thing I want to know is why isn't there any mention at all of potential MTBE impacts in this area. Your district is very well aware of that and did some studies and it had to do work with the state water board to help monitor the problem. But it is within the area of this new Tennyson Well. And there's no mention at all of any monitoring or testing or anything for that. I respectfully ask that that be included in the contract regarding the Tennyson Lane Well. And I also want to know where the source of the development, the well development water will be. If it's going to be potable water, you have to extract the chlorine. Thank you. All right. Any other public comments? Okay. I'll move approval of the approval. Send other than 4.4. Is there a second? I'll second. Did staff want to respond to the comment at this time or at a later time? Not now. Thank you. Okay. Thank you. All right. So we can do a voice vote, right? It's all in favor. I'll oppose. Passes unanimously. So oral and written communications met the opportunity for a member from the public to talk on something that's not on tonight's agenda. Becky. Thank you. Becky Steinbruner. I believe in correct me if I'm wrong. It's also the time when I can comment about correspondence that you have received. I think you can. Yes. Thank you. I want to bring to your boards and staff's attention and the public. As long as it's not about an agenda item. Correct. The appropriate place would be when that agenda item is correct. Thank you. Thank you very much for that clarification. The letter that your board received from the Sierra Club is very concerning to me and should be to you regarding the Laurel Street Bridge pure water so cal conveyance project habitat impact. I have spoken to you about this a number of time with my concerns. I've raised it in my litigation because this this is a result of the district not collaborating with California Department of Fish and Wildlife for meaningful and enforceable mitigations. California Department of Fish and Wildlife was never consulted on the bridge the Laurel Street Bridge pipeline conveyance attachments. And initially your project was going to dredge under the San Lorenzo River and then without any public notice it switched to being attached to the Laurel Street Bridge. I've talked with you about the impacts on the swallows. It was only because a citizen, Ms. Jane Meo, brought it to someone's attention. Not yours because you haven't paid attention to this. But the biologist actually stopped your work because of the impacts on the this swallows on the bridge. Now I ask that you read this letter that you have received from Mr. Michael Goothe from the Sierra Club. Observation indicates a steep drop in swallow nests beneath the Laurel Street Bridge since the Pure Water Soquel installation work began from an annual average of 50 nests to approximately 1515 after the implementation of the Pure Water Soquel project. And now the facade that is being put up to cover the pipe does not address this issue still. So I beg you please follow the law, work with Department of Fish and Wildlife and continue this project with a meaningful mitigation for the impacts that that it is causing. This is serious. And I don't ever get the feeling that you care. For example, Director Lee Hu is not even listening. He's looking down. So please read this and I urge the members of the public to read it as well. Finally, I will just draw your attention also to correspondence that I sent regarding a $14,000 a month credit card fees that your district is paying. Thank you. Thank you. I have read the letter from the Sierra Club and I would bet a lot of money that Tom has as well. I have read the letter as well. What are you going to do? How are you going to sit down? Just a second. I'm just letting you know. No, let's not go back and forth. It's not the right place. Please be respectful and sit down, Ms. Steinbruner. Please. Thank you. All right. So yeah, I'm not going to respond to you, Becky, if this is what it leads to with back and forth. But that brings us to any board members, any oral communication? None? Okay. So now we're on to reports. There are no reports and then administrative business. So there are no conditional and unconditional wills serves. And that brings us to 7.2, authorizing entering into a service contract for operation and maintenance at risk services for the Pure Water Soquel Advanced Water Purification Facility. Good evening. Thank you, board. I'm going to be partnering with a couple people tonight on the presentation and then of course we're also available for questions. But tonight this item is item 7.2, the Pure Water Soquel Operations and Maintenance at Risk Service Contract. So we do have a short PowerPoint presentation and I'd like to just outline that in terms of the slides we're going to do an introduction. We'll have a purpose and background. We'll go over the project, obviously the Pure Water Soquel project and give an update. And then we'll go into the key contract terms and the fiscal impact and then wrap up with the possible board actions. This is something I know that Ron is always very keen on just in terms of an executive summary. We often don't know if we'll have a lot of people in the public that may be new to understanding Pure Water Soquel. So we do have a little bit of information just about our groundwater conditions and that the Santa Cruz County Mid County Groundwater Basin is critically overdrafted. We also are always available to share information related to the Pure Water Soquel project and specifically for the Purification and Treatment Facility at the Shanna Clear site. And then you know tonight is about the operations and maintenance at risk contract that we are asking the board to consider for approval. So before I turn it over to my colleague Cameron Costigan Mumper who is our Associate Water Resources Manager at Soquel Creek Water District who will be giving the PowerPoint presentation. I also did want to introduce a couple other people that are in the audience as well as online. We do have John Rickerman and also Paul Reel with Jacobs. We also have Anup Shah with Brown and Caldwell and then of course we have Glenn Price with BBK who's helping us with the contract terms and conditions and is doing the legal advisement as our counsel. Okay and I'm going to turn it over to Cameron. Thanks Melanie and thank you board. Road less traveled to sustainability is what I think about when I look at this picture here of this bridge spanning across in this ravine. The district's come a long way and the Pure Water Soquel project is nearing completion at this point. The next phase in this journey it requires courage determination and also balance in my opinion but sustainability is within reach. I commend everyone that's worked on this project including the board members who have approved it and that embody this philosophy and making sound rational decisions. With that being said the purpose of this presentation tonight is really threefold. We want to present the service contract for the operations and maintenance at risk or OMAR services for the Pure Water Soquel Advanced Water Purification Facility, the AWPF as I'll probably refer to it throughout this presentation. We also want to discuss some of the key terms of the service contract and the fiscal impact to the Soquel Creek Water District or the district and authorize the district to enter into a 10-year OMAR service contract with Jacobs Engineering Group. Next slide. So we faced some major challenges with groundwater in our basin as we know it's critically overdrafted. It's one of 21 basins within California that have such designation and there's a mandate to become sustainable by 2040. In addition to being critically overdrafted it's also considered a high priority basin because groundwater is the sole source of water. We also know that there is strong evidence of seawater intrusion along the entire Monterey Bay coastline. So to help mitigate these issues and achieve sustainability the district developed the Pure Water Soquel Project. Can you scroll down just a little? Oh thank you. There's basically three elements to the project. You have your conveyance infrastructure project which I don't know if you can see. There you go. Thank you. It's the purple pipeline. It's not recycled water purple pipeline but it is purple on this image here which is essentially conveying the source water from the Santa Cruz wastewater treatment plant or the Santa Cruz facility all the way to the advanced water purification facility that's denoted there by the blue star. From there you have three injection wells. The pathway to get to those injection wells is the lighter blue pathway there and the blue dots are the injection wells themselves. That's where the purified water will be delivered into the basin. In the next slides I'll talk about the benefits and also the process itself. So we know that the benefits of this project are many fold. We show them here summarized since the source water for the Pure Water Soquel advanced water purification facility is coming from the Santa Cruz facility. What that means is you have a reduction in the discharge of the Santa Cruz facilities effluent and into the moderate pay by approximately 25%. We know that injecting this purified water into the basin is going to provide a seawater intrusion barrier as well as a reliable and drought-proof water supply and the project can be accomplished pretty quickly also using green energy. It promotes local economy, produces high quality water and the facility has been designed to be scaled up to be expanded in the future. One thing that I'd like to add to that list of benefits there is also innovation. I think that is definitely a benefit of this project. When projects like this are completed it sets an example of projects that are important and it shows others that they can be completed. They can be accomplished and that they can be successful and effective in their goals. What you're seeing here is what we call a process flow diagram. It's really just the path of water that we're going to follow. Most of what we're focusing on tonight and with Jacob's contract will be what you see in the gray dashed area there. That's the advanced water purification facility. But it's important to note that the source water is coming from Santa Cruz along the dark blue pathway about five miles of pipe. So initially it gets pumped through some strainers, makes that five-mile journey over to the AWPF. There's an initial pretreatment set of OZNation to help remove some of the contaminants that are otherwise present in the source water that can impact other downstream unit processes like the ultraviolet and advanced oxidation process as well as the reverse osmosis system. So from there it passes through microfiltration and then through reverse osmosis to remove things like bacteria and viruses and then it moves on to disinfection in the ultraviolet and advanced oxidation process. At that point the water is very pure and we have some post treatment, removing carbon dioxide to balance the pH, adding in some minerals and then we're pumping it into the SWIP wells or the seawater intrusion prevention wells. What I wanted to also note on that, that's okay. What I also wanted to note on here is this is a very simplified process flow diagram. It doesn't encompass all of the system operation and I think that's important to note because the district does not have operators currently that hold or possess the required state licensure to be able to operate a facility like this and they don't have the experience of operating a facility like this. There are complexities within the system that Jacobs does have experience operating and managing and maintaining. Next slide. So all that process that you just saw, it's really contained in this kind of small footprint that you see here. On the left hand side there's a picture of what the lot used to look like prior to the development of the advanced water purification facility and it's a pretty small site but like I said there's room to expand. The back portion of the building can be entirely removed and additional unit processes can be added onto there all without actually having to expand on some of the chemical tanks that we'll be using. We'll just have other deliveries. I think that was all I'm going to say about that. In terms of a program schedule, well here we are March 5th and there we are a red line and you can see the conveyance project is nearing completion and that will phase into the completion of the seawater intrusion prevention wells and then while that is occurring we also have construction continuing at the AWPF itself. Pretty soon we expect to start some preliminary startup and commissioning of those facilities at the AWPF, of those systems there and all that and the O&M agreement that we've been working on with Jacobs and been developing is coming to fruition in April basically and then at that point we'll be transitioning a slow transition over to Jacobs so that we can eventually begin operation so the Jacobs can begin operation of that facility in what we hope to be mid-November and you can't see it because there's a screen up there but that's that mid-November date oh thanks is when we anticipate the first delivery of purified water to the mid-county groundwater basin. I think just one thing to note on this I know when we were talking about giving a program update schedule this is just 2024 as you guys are well aware there were many many years prior to this that isn't on at this diagram but this is just a real narrow view of what's in store in this coming months. In terms of contract operations procurement for this really began back in 2019 with an RFQ that was issued there was a selection committee that was put together with board members and district members alike where CH2M Hill was selected in 2020 and CH2M Hill being a subsidiary of Jacobs. Jacobs themselves they have operation and maintenance services for more than 200 water and wastewater facilities in the U.S. and I think California alone they have more than 35 years of experience contract operations at other facilities like in the city of Gilroy, city of Auburn, Sherlock Irrigation District and Twin Oaks Valley. They've been involved with this process ever since the beginning in phase one where they provided professional advisory services during the design of the Pure Water SoCal project and into what we're in now phase two supporting the design builder during the construction and then they will also be continuing that during the commissioning and acceptance of the project and the facilities themselves but for today I've highlighted phase three that's the next phase that's the one that needs the courage and determination and balance right to operate and maintain the AWPF over the long term and with that I'm gonna hand it over to you Glen to talk about some of the key contract terms. Glen you're on mute. Sorry about that. Thanks Cameron I'm Glen Price I'm a partner with Best Best and Krieger and I've been working with staff to draft and negotiate the O&M agreement with Jacobs. It's a pleasure to be here with you tonight and just go over some of the kind of summarize some of the key contract terms given that the contract itself is very lengthy and technical but we're just going to give you some of the highlights here. So the term of the contract is for 10 years and the term is broken into two periods essentially a baseline period and an OMAR period which is the at-risk period for Jacobs. The baseline period is really for Jacobs and the district to work out all the kinks on operation of the AWPF learn the most efficient way to run the the facility in terms of the utilization of chemicals and electricity and also making the best use of the water that's available from the Santa Cruz plant. So during that baseline period we'll be kind of collecting data and determining kind of all of these various factors of how the plant's going to be operated for the duration of its life in service. Once that period's over the OMAR period will kick in and that is where Jacobs will take full responsibility for the operation of the plant based on the data and the kind of processes that have been determined during the baseline period. There is an option for the district to renew the agreement for an additional five-year term if it desires to do so at the end of the 10 years. In the event that the district decided at some point that it would like to take over operations of the plant for some reason we did provide that flexibility and it can do so on 180 days notice. There is an early termination fee and the purpose of that fee is to compensate Jacobs for its investment kind of in the project in the plant going up to the commencement date because Jacobs actually isn't being compensated by the district until the commencement date so it's making that investment which it would expect to be reimbursed for over the 10-year period so that's why the early termination fee actually starts at a higher number and then we'll go down over time as Jacobs is actually getting reimbursed for that initial investment. Next slide please. So at all times during the term of the contract and and following it the assets the AWPF the education and operations building that's located on site all of these assets are owned by the district. Jacobs is responsible for managing those assets under the O&M agreement and we'll get into some of the details of that on other slides. As I mentioned during the OMARP baseline we will be setting the operating standards for the plant for the various items I already mentioned efficiency use and also making the most effective use of water. This is particularly important so we can you know determine what parts of the year are best for shutting the plant down for maintenance activities and also potentially having the plant reduce operations if there's not a lot of water available seasonally and this will lead to more efficient operation of the plant. Next slide. So the primary purpose of the agreement is obviously operation and maintenance and Jacobs will be responsible for the operation and maintenance of the AWPF. Right now as part of phase two they are working with the design builder to create the operation and maintenance manual and this is the primary document that'll be used to set the procedures and standards for the operation of the AWPF once we commence operations in November. At that point Jacobs will switch from a development position to putting that manual together along with a design builder to actually implementing and running the plant pursuant to that manual and you know an important component of the operation and maintenance is obviously preventive and corrective maintenance and we'll get into that a little bit more. Under their maintenance repair and replacement provisions Jacobs will be responsible for all of the cost of doing routine maintenance up to a certain dollar amount and that's part of its fees for the O&M. There's then also major maintenance repair and replacement and this is all of the various parts of the plant that need to be replaced on a periodic basis you know including filters, UV bulbs, various components that do need to be replaced from time to time and Jacobs with the input of the district is developing a MRNR schedule that'll set forth the time frame for that and as part of that there's an ongoing five-year forecast for the district of what the expenditures will be on an annual basis looking out at least five years. Next slide. So an obviously an important component of operations is staffing and training and Jacobs will be staffing the plant during regular business hours with six full-time employees. When the employees are not on site there is kind of full ability to monitor the plant remotely and there will always be people on hand to to monitor the plant if there's any kinds of alarms or difficulties or issues with the plant. Jacobs staff will be available to handle those on an after hours or an emergency basis as well as all of their activities when they're working full time at the plant. We do have provisions in the agreement that if for any reason we had to substantially curtail the operation of the plant or even shut it down for a period of time let's say because there was a problem at the Santa Cruz plant that we are able to reduce staffing and work with Jacobs to do that to try to save money during those periods when we might be non-operational for a long period of time. Jacobs is responsible for obtaining all the necessary licenses and certifications for their staff and they will be hiring, qualified and experienced individuals to work at the plant that have all those requirements. In addition to the individuals that Jacobs will have at the plant we also have the benefit pursuant to the agreement of working with Jacobs extensive knowledge base of engineering and water quality professionals, water treatment professionals throughout the United States. So that's very helpful if anything happens that you know staff or employees at the plant are not familiar with they have a very broad and diverse knowledge base to draw from from all of Jacobs other operations. Jacobs will be having semi-annual workshops and training for district staff and we thought that was a very important component that's been negotiated with Jacobs where they're going to be helping our staff, our water quality people and engineers to learn how the plant works and have a good a good feel for how it fits into the overall operations of the district. As I had mentioned earlier with respect to the coordination contract administration, Jacobs is available 24-7 for an emergency response if they need to be outside of the normal business hours and they will be regularly working with staff at the district. Next slide please. Now one thing that an important decision that was made by the district was to handle its own procurement of electricity and chemicals and this was done so that the district could do that in the most cost effective manner and would not have to rely on Jacobs and pay administrative and overhead costs for those services and that helps the district to save considerably over the life of the contract. So those will be separately handled by district staff during the baseline period they will be we as I've mentioned we will be kind of establishing what is the appropriate levels of chemical electrical use and once that is set part of the OMAR the at-risk component of this for Jacobs is that they will then operate the plant kind of within those thresholds that we've established for efficiency and if Jacobs goes over that electricity or chemical usage for reasons that are not excusable let's say because of something that's the fault of the district or the result of water quality issues from Santa Cruz if it's instead the just an issue of the plant not being run as efficiently as it should then Jacobs is on the hook for any excess cost of usage of electricity and chemicals. On monitoring and reporting this is obviously a very important part of the contract because we have to stay in compliance with all the district's permits and with the state so Jacobs will be collecting and preparing all of the samples on a regular periodic basis as required by the district's permits. The district has decided to actually control the laboratory testing itself and that's to give it greater control and more accountability for not relying on Jacobs to provide it with the key testing whether the plant is in compliance. So Jacobs will collect and prepare the samples and then they'll be shipped to an external lab that has been hired by the district and the district will then have control over those results which will go to the district and to various regulatory agencies. In addition the Jacobs will be preparing you know various reports for the district from time to time on the operation of the plant and providing data so that the staff can monitor whether the plant is operating efficiently and per our expectations under the O&M agreement. Next slide. So that's it so if there's any questions would be happy to answer those from the board. Thank you. Any questions from the directors? I think maybe we can just have Cameron summarize this in the next slide. Do you want to hit on the fiscal impact and then the motion? So you prefer to summarize and then ask the questions. Okay sure. Thank you Glenn. So in terms of the fiscal impact for the baseline period what we're projecting is $4.6 million for at-risk services provided by Jacobs. That will apply to actually three fiscal years because we're project or anticipating the injection of purified water to begin in November of this year and since the baseline period is for 24 months it will span those fiscal years and so we'll be spreading those costs out. Those that they will also be an annual inflation adjustment that will occur and then other than that we want to come back with a revised budget for a fiscal year 26 and 27 that will be updating the board on near the end of the baseline period after we have some operational experience and had an opportunity to optimize the AWPF. As Glenn had mentioned this includes the removal of certain responsibilities from Jacobs for cost-saving purposes such as electricity, chemicals, analytical costs etc. Thank you. So of course, so there's more? No we can end here. This is just the summary recap where we just wanted to address that we did have the staff recommendation and then of course we have the possible board of actions for you to consider. That's what's exactly what's in the back. So clarifying questions before you open it up of a comment? I have a couple. You two you want to go ahead? So one of the questions I had was when I was reading through it it was saying it was $2 million a year and then it went to $4.6 so I have a question about that difference. Then I'll just give them all to you and then if we have any input on their staff like say there's something they're doing we don't like or we just address it with them and then they deal with their staff that's another question. I need to know I was curious what an NTE was and then I think there was a part on liquidated damages that I think you explained, Glenn explained that I think I understand now but it said I'm on the very last on page 53 of the packet it says Jacob so pay liquidated damages in the amount of $1,500 and then in parentheses it says $4,000 per million gallons of production shortfalls and then it says such damages will not be payable to the extent that the shortfall results from a period of non-operation where liquidated damages are imposed pursuant to incidents of non-compliance so just you know clarify that for me it's just kind of a little bit of double negative and I get confused. Yeah I'd be happy to take that. There's a couple different types of liquidated damages in the agreement and the that difference between that $1,500 and the $4,000 was numbers we were negotiating with Jacobs. Jacobs has agreed to the $4,000 per acre foot if a shortfall in water production is the fault of Jacobs when their plant is operating normally so the kind of the qualifications or the double negative really has to do with two things one is there's another form of liquidated damages where if Jacobs is not operating the plant within the quality requirements or the discharge of the purified water and this is due to Jacobs fault and not an issue with let's say non-compliant water coming in from Santa Cruz so that it you know in which case it would not be their fault but if they're not operating the plant properly or having difficulty meeting the quality requirements then the plant will be shut down because it can't operate if it's discharging water that doesn't meet quality requirements and a different liquidated damage is in effect during a period when the plant is simply shut down for that so this is separate from the water production liquidated damages and you know that's really meant for a case where the water is of the appropriate quality but it's not the proper volume so that liquidated damages would kick in when it's a volume issue the other liquidated damages apply when there's a quality issue and my other versions were just what an NTE is and then the cost and the input on staff and the cost yeah I can talk to the cost so the approximate two million dollars so that was I mean it's a little over initially every year there's going to be an adjustment for inflation that's going to be applied to that number so then over the three fiscal years that we're looking at there's going to be three adjustment points basically to account for that and so that's how you kind of get from what we're saying is roughly two million to start with and then for you know more than two million on the second year to kind of get you to the 4.6 million so the the four and a half is for two years yeah it's I think to answer the other two questions that you had one was on NTE I believe that might have been in reference to a not to exceed okay just from an acronym and we should have caught that so I'm really sorry that that acronym slipped through the other one was about input on staffing and I think I will I'd like to tee that off and if John if you want to come because I think it would be good to hear from from you as well we've been you know working with Jacob since they first proposed on the RFQ and the RFP for coming on board to help and assist with the operability considerations of phase one during pre-design and design work and at that time they had assembled a team of engineers professionals and operators we got to meet one that we were hoping you know could have been the operator that would have been here at the project unfortunately sometimes the stars do not always align with when this project comes online and when that that lead operator and plant manager would have been available for us so we've talked about that a little bit about how will they be procuring that is kind of this next period of where the contract approval would take place and obviously they're not really going to be commencing until black and beach has completed their work the plan is passing all of the acceptance testing and startup commission everything is done there they will then commence their contract and so between this time and when they take the plan over is when they will be going through that hiring I do know that we will be a part of that and I'd like to hopefully you can explain a little bit more on that sure thanks Melanie John recommend Jacobs good evening so is the button on is it on I think it's on I just have to put your mouth on it all right yeah hiring is always one of the most exciting parts of starting one of these what we call Greenfield projects so there's no existing ONM staff for us to retrain to our best practices so we're starting fresh which is also a great opportunity so Paul and I actually have been extremely active on this we had a number of interviews last week in anticipation of board approval and we've actually had some offers accepted for some senior level advanced water treatment certified operators in California so we're making excellent progress on this Melanie it's been it's been interesting but we are excited that we have dates and contracts and commitments moving the right direction so we're excited to do this as was mentioned by Cameron earlier though in the event we are still not fully staffed with our onsite local team we have 2,500 operators nationally and I have a team of quite a few of them that are road warriors and we show up and do what we need to do Paul's in the middle of a startup of a similar kind of a project right now in Washington state where we have a fleet of people descend on the site to make sure it starts up properly so this is this is what we do and we're looking forward to it here Carla yeah I think I had that one question about the 4.6 million two but actually I was curious about the six personnel and and whether that would you know if they're working 40 hour weeks how that would overlap for weekends and nights because you know new new facilities and new machines knew anything often have bugs and things like that it feels like this you know that's something that we should anticipate and prepare for I would just one of my concerns I'm excited to have this project getting started so I'd like yeah I'd like to hear a little bit more discussion on that because it seems like sort of a skeleton that's proposed I mean just and and then I was also just curious about whether there'd be any interaction with the staff the personnel at the Santa Cruz wastewater treatment plant to train them and orient them on the thing on the project and and the production I wanted to hear about that and the last one is probably really hypothetical but I wanted to know what would happen with this contract if we expanded production because there wasn't any mention of that on how that would work whether the same personnel would be able to handle more production or whether you know what exactly would happen what is there anything in the agreement agreement to mention that I know there's a termination a no fault termination but is there corresponding expansion and then I guess that's it for the moment there's probably always going to be questions but those are the ones that hit me when I was reading it today when did you want to answer the contract one related to expansion yeah the the contract has some fairly lengthy provisions about capital improvements and those most of that verbiage it sets it sets up a framework for the district and Jacobs to work together on those but the district is always the final arbiter of making decisions because of the cost of having capital improvements so probably the ultimate capital improvement you could have at the plant would be an expansion so I think we would anticipate during at least during the 10-year term that if there was an expansion the Jacobs would be continuing to be the owner and provider for the the expanded facility I think that would require more staffing likely and you know we would have to work out the details of that in terms of cost at the time of the expansion there would have to be an amendment to the contract to accommodate them at this time the contract is just for the size of the project as we all know this is a very defined project of 1500 acre feet per year that is what the EIR is covered if anything was to be expanded we would have to go ahead and do an additional EIR some additional design work we would have to open up and discuss the operations considerations of the facility with Jacobs but as you also know that the project was was contemplated to be increased so the the footprint is large enough as Cameron mentioned how we could expand it but at this time it's it's not included in in this operation even if there were a minor expansion even that would fell in within the within the confines of the existing plant I would say that and I'm foreseen that of course we'll be doing you know a good working relationship with with our contract operator that if we were to operate and identify that there was an expansion we first have to define um what that would be how long that would take you know the process to expand does take a while um and then we would start to do that discussion and identify if they could do that with the existing staff or what kind of increase that would be yeah and I would add any any environmental review or actions that would need to be taken I I do think you also asked the question related to the collaboration and the working relationship with the city of sienna cruise public works department again I we have had an ongoing working relationship with the city during the design efforts as well as wall work in construction with the engineers that work down there as well as the operators the electricians the the skate and the communication technicians I foresee that will continue they are on our meetings currently I believe they currently are as Glenn mentioned we will continue meetings once the plant is operational both monthly and weekly so not only will will collaboration be with the third party omar the city of sienna cruise staff and also our staff who will be doing the operations and maintenance for the pipelines and the seawater intrusion prevention wells the question was whether the existing the currently proposed staff is sufficient to respond to emergencies off out yes you do want to see that up I will say before as john comes comes up we have always really listened to the board as well as the community related to staffing that was something that the nwi panel addressed that they wanted us to make sure that we were ready and prepared on all steps of the process design construction and operation ron and I have probably called every single agency that has operated an IPR project in california and even beyond to get lessons learned to get information to get tips and tricks and to and even today we were on calls we're constantly trying to learn from other agencies and what they're doing whether it's contract operations or whether they're doing the operations in house with city or county staff we feel that the size that we have proposed with this contract has been with that input from other agencies as well as jacob's and their depth and that it is sized we've also been working with the state this facility which has been identified in a lot of our planning documents like the eir the engineering report our operations and optimization plan that we're submitting to the state is sized so that it can be accommodating a less than 10 million gallons per day facility which this facility is where 1.3 or 1500 acre feet per year very very similar to santa monica and several others that are about the one mgd size and then john please feel free to add more thanks mel so director christian since your other question i'm during that startup period where things are a little chaotic we do have in our our initial budget which is partly what glenn described is is something we invest in up front we bring in a large team of experts from all over the country uh on a variety of things technical uh instrumentation hr uh safety training all kinds of different experts for as long as it takes until we're stable so that's part of the investment we make that's reassuring that's exactly when all the perfect thing might happen most likely but yeah i'll also add thank you john thank you cameron will be working with them you know on a daily thing we call him the master coordinator in a sense so he can almost look like him as an extension or east inner woven the other thing is one of the is melanie touched on the ideas of being budget conscious and uh prudent but uh not at the sacrifice of water quality or anything like that the thing that's one of the things that's appealing about a company like jackups is their deep bench right so they don't have to keep 10 people on that when they can keep six and then when they need four more they can call men just periodically versus if we ran it we might need all 10 all the time and that wouldn't be the most efficient so that is i would say probably one of the greatest attributes besides that you have vast experience in operating a facility such as this any other questions from other directors so carly had the exact same question of whether you know the staffing was sufficient for that initial period where bugs do or could possibly show up um so question for glenn so if when we start up there's uh it becomes obvious that we do need to have people on site for weekends or um increase the the staffing for a period of time how is that accommodated is that an amendment to the contract well right now it's contemplated that jackups it has recommended the number of employees so if they needed to have people working just for normal operations because of issues with the plant that would really be at jackups risk we are paying them a fixed fee for operation of the plant now if there's something extraordinary that happens let's or let's say a new contaminant has worked its way into the water discharge going to santa cruz and it makes its way to the plant in the in the treated water that comes to the wpf and this is not something that was previously contemplated as part of the treatment or the or it impacts the treatment to the quality standards that were required to provide under the permits then there is provision that we would engage jackups experts to deal with those unknown or unanticipated issues on a time and material basis but with respect to just getting the plant up and running and kind of dealing with those kinds of issues and over time that is part of jackups fixed fee and then if i may since you've made the trip here can you educate me on other plants that are similar to ours and what's happened with them i'd recommend jackups um so we were looking over our list recently and there's some recent additions it's probably 15 or 20 sites of various sizes doing direct indirect potable reuse title 22 style reuse commercial membrane treatment systems there's a lot of variations on the theme most of the sites we run are actually larger than yours right now um although we expect expansion at some point the largest one is 66 mgd so about 50 times bigger than this facility and that's in australia um and what types of issues show up with the smaller ones i know it's a small sample size um the issues tend to be the same uh in my experience it's instrumentation that's a lot of the the challenge these systems are um largely computer controlled so the redundancy you need on the control systems and the attention to the instrumentation that those control systems rely on that's that's really where the pinch point is for these facilities and that's going to be a lot of our focus during startup is making sure the instrumentation and control systems are correct okay thank you thank you any other questions uh i guess it's time for public comment then if there's anybody in the audience with initials i'm just joking becky well um for our guests here do not be fooled into thinking that because how many people are here that nobody cares um people are very worried about this and so anything that you can do as an operator in conjunction with the district to make any and all data positive and negative publicly accessible you will be helping the public gain trust in this agency because we really don't have any now i am happy to learn why the operation cost more than doubled from the end the initial estimate of two and a half million to five and a half million this explains that this is the first time we've had an explanation even during the rate hearings it was not explained so um i am worried that um jacob's will only be there five days a week during business hours and the rest of the time will be running itself under instrumentation i remember when the marina um one water project released nine million gallons of raw sewage into the bay because nobody was there and they were depending on the instrumentation and it failed and that was with redundancy so we are very and i speak for the public we are very worried about these sorts of things happening and uh going into polluting the groundwater you make the comment that it's very pure water but it actually isn't the final anti degradation analysis shows that it will be injecting nitrate and chloride and who knows what else because it isn't um it is an unregulated thing that's not reported to be uh has to be reported i'm i'm happy to learn what this at-risk means because that was not explained i'm the only one here can i have one more minute please director here was shaking his head no that's not if we make exceptions we're going to continue to make it let's stick to the two minutes and go with um emails with your further question that no one answers no one answers where can i see the contract would you please be respectful and sit down i want to know where i can see the contract their references to section i'm going to sit down they are not included in the board packet this time brunner please sit down be respectful of everybody's time here thank you very much with you mr. Duncan for many many years and please sit down thank you okay is there any other board questions after hearing the public comment if not does anybody uh want to make a motion or no motion if i say that loud enough i second oh okay my mic was not on sorry all right so this is a resolution so does that mean roll call or is it no josh is this a resolution that requires a roll call vote uh this supports pleasure it could be a voice vote or we can do it by roll call let's do it by voice all in favor all opposed seen none passes unanimously that brings us to 7.3 approved professional services agreement and scope of work for architectural and engineering services for the pure water so-called education and operations center renovation dodge yes good evening although um adam bayer behind me has been one really leading this effort and we'll be leading it through completion so i'm going to introduce adam bayer to lead you through this item if that's okay thank you adam so you only tell you what the project is about whatever you think we need to know that's okay so assuming that we read yeah we have read it entirely just like i could 30 second overview the main motion the main elements of this project are what's called a change of use which changes the building from its current um use as a glass shop to uh more of an office uh arrangement which is going to entail um likely seismic upgrade so it has to essentially bring it up to code to current code as if it was built today that's the primary focus of it um the um the other two elements are the um the operations center component which is essentially the secure storage area and the location for the six operators or the six contingent of staff uh you know to be able to be in the upstairs and in the um secure storage area uh the main element there is that it's got direct access off of shanticleer not through the um the main gate but um directly off of shanticleer and then there's direct access through the back um of the storage area and then the other component is is is the education center which is the you know the what was formerly the showroom floor um and the main component there is how it's going to connect to the the treatments plant itself um one of the things you know ron that you had mentioned when i was at that the office a few weeks ago was the notion that the the the real um thing to see there is the plant itself and not the education center so the you know the focus is really to make that um in large part i see it as um very similar to what's to what's there now um but really to make that connection to the plant so that um the attraction is really to to get into the plant be able to see the process so those are the main components all right thank you um any questions by directors i mean i might just say that you know Jennifer and i were on the subcommittee to kind of look at the different ones and and it was really an interesting process and Adam and Cameron was involved in that as well and we were pretty happy with uh with the approach that this group took so um anyway and the qualification okay i would add um that uh there was a um at least one late entry on recommendation and it was really positive so you know it seems like like every turn we've had so far as has essentially resulted in references okay great great references all right are there any questions does somebody want to make a motion well public comment uh no public comment any any questions are in motion so this is the quick question um the you're gonna change the footprint is that part of the proposal and it's one of the key uh aspects is it is it's where walls stay the same it's it's interior some of the you know the elements the seismic elements of mine yet but it's usually at the connections or those types of good raw material there i've been in there so many times so i'll make the motion then proceed okay you got that um and carla all in favor hi hi all opposed passes unanimously so that is they that ends the administrative business and we now go into closed session i believe there was a point four more point four was pulled oh yes yes thank you all right so i'll be glad to provide a quick overview or answer any questions whatever the board's pleasure is regarding item 4.4 renewal of uh memorandum of agreement for the santa cruz county integrated regional water management program right so jennifer you're yeah thank you ron um i had three quick questions um the first one is um the moa commences january first of this year but it's march fifth just wondering about the delay yes this goes out to numerous uh entities that are part of it so they're trying to get us all corralled i don't know i don't even believe we're the last to the to bring it to the to the table okay yeah that makes sense um i also was wondering about um the plan of the 108 projects shows um the status as of uh 2022 and i'm wondering if there's anything that's more current or up to date or if that was the last time that they did that definitely things have evolved within that list but i'm not exactly sure um but just to back up to the big picture what's what the big change that has happened with this group is that it used to be that we would kind of like fight as an entity or our own regional IRWM for funding and now the state divvies portions up to each one and then we work within our own um region to how the money's divvied up and you can see for soquel creek water district the return on investment's been substantial when you look at we would have to attribute about 12 grand a year and we've gotten back over three millions okay yeah it looks like an amazing group they do good work um and there's uh all these environmental stewardship groups including the county parks ecology action Watsonville wetlands watch coastal watershed council and the villa del monte mutual water company which is like near los gatos but um i was wondering about the amma moots in tribal band because they're not included and just curious about that i i know they're uh involved uh when they go out to do projects i hear tim karson speak about them often and and their role in different projects and contributions so um i know they're heavily involved i that's the extent that i okay they're just not listed anywhere it may not be listed specifically but when a project is involved that may have some impact to them i say thank you thank you very much for the clarification seems like an amazing group sorry i mean or shall i see you turned on me i made a face yeah the members of the ir w mr agencies and they're not tribal oh i understand i read all of the plans and all of them yes there's 13 agencies pay into for their own projects but when they do their projects they do look at the tribal and you know um the sequel and tribal issues but we don't have you know county planning in there either who would be reviewing the sequel they're invited to the table when these projects go on but yeah like the ecology action has like a lot of projects in there that are all environmental stewardship and i know that the tribal band has environmental stewardship projects but they're not listed it was just i was wondering why but i think he explained that thank you any other questions about 4.4 any public comment seeing done jennifer do you want to make a motion on it yes i would like to approve the moa thank you okay is there a second oh jennifer carla all in favor i i all opposed that says unanimously okay are we done done with that just uh um see if there's anybody wants to comment before we go into public i mean to um oh yes is there any is there any public comment before we go into closed session seeing them okay we're gonna enter into closed session and then come out and yeah so we'll ask everybody to um it's not involved with that