 Great like to call the meeting of the Board of Public Utilities for the City of Santa Rosa to order if we can have a roll call, please Chairman Galvin present vice chair count Board Member Arnone Board Member Dowd Board Member Holt Board Member Stephenson Board Member Tibbets Good afternoon for the record Board Member Tibbets has been in Sacramento and a hearing and is hoping to get back in time for at least part of the meeting So we'll go ahead and get started Statements of abstention by board members I will be abstaining from the approval of the minutes for May 21st and June 4th All of them. Okay, then we won't worry about that. All right We'll move then to our study session Thank you. Our city session today is a presentation on the producer distributor recycle water agreement with runner park and give the presentation as deputy Director of subregional operations my friends Good afternoon chair and members of the board I think I'm a further away from you in this setting that I would be in the council chambers, which It's a little awkward, but Today I'm going to be speaking to you about a proposed recycle water supply agreement between runner park and Santa Rosa Right off the bat. I want to acknowledge some people who have Contributed significantly to us getting to the point where I'm in front of you today discussing this I'm Jennifer Burke and Mary Grace Possen have played significant roles in the negotiation of the agreement up to this point And then also Suzanne Rawlings has provided a lot of advice to city staff as well through this process And it's a big relief to me to have all three of them here because I'm quite confident with them here We'll be able to answer any difficult questions that you may have about this I have been working on this lately, but Jennifer Burke actually was working on this back even in 2013 Which is something that I'll bring up later in the agreement Give you a quick overview of my presentation today First off, I want to talk a little bit about the subregional recycle water system The purpose behind it as of today and some statistics that will be relevant for the presentation I want to talk about the runner park Component of that recycle water system the Santa Rosa component of that recycle water system as well some producer distributor concepts that come into play in the agreement as proposed I Want to embed at this point in the presentation a sort of sub agenda about the rationale and how and some what ifs Which may answer some questions that you may have Wrap up with a brief discussion of the schedule with some recent developments and some Expected developments after this meeting and then there will be an opportunity for any discussion or questions that you may want to entertain Jumping right into the sub regional system I think it's not a foreign system to anyone here, but I do want to get a few facts out in the open I think we're all aware of the sub regional partners that are served by it Santa Rosa Cotadi runner Park, Sebastopol parts of unincorporated parts of the county Historically the system did have some capacity problems in the 80s which triggered a number of improvements One significant one that you're all aware of is the geysers pipeline and an extensive Evolution of the recycle water distribution system At that time disposal was the name of the game and that was a routine thing that we did via discharge Things have evolved significantly since that time and now we are in a 100% reuse mode one third of the water that's produced at the plant is used for irrigation purposes agricultural and urban irrigation purposes we actually irrigate in the order on the order of 6,200 acres of pasture vineyards golf courses and landscaping in runner Park Santa Rosa and areas around the plant and in the around the Laguna de Santa Rosa The other two-thirds of the water on average is delivered to the Calpine Steam fields at the other end of the geysers pipeline Because of those demands there is typically no discharge from the system in a normal year and Ultimately based on the 70-year dataset that was used during conceptual design of the geysers pipeline When you look at those Precipitation amounts for the past 70 years. I think it actually is more than 70 at this point It boils down to about a 2% chance of weather Wet weather induced needs for discharge. So I think it's a fair statement to say that recycle water is arguably a commodity 98% of the time Continuing on This is a graphic that I had developed not that long ago that I think is Valuable for a number of reasons not the least of which is it does show the spatial relationship of the sub-regional partners the extent of the geysers pipeline all the way up to the terminal reservoir at the top of the graphic and Just as a footnote there are land application sites for biosolids down In the southern end of the county as well. So it's an overall graphic Windsor is shown. They're not technically a sub-regional partner But they are a customer in a sense because they are tied into the geysers pipeline as well. And so that's why they're Shown on this graphic also As I think most of you know the sub-regional system includes a number of Disposal slash reuse avenues The most significant which in terms of volume as geysers the geysers project Ag reuse and urban reuse and in wet conditions. We potentially have to discharge Today's presentation really is focused on the urban reuse component only and Specifically within that arena runner parks reuse of the recycle water that we generate To put things into more of a visual context This is what we forecast to be the distribution of recycled water For this season it may be a slide I've shown in a recycle water update not that long ago But it's relevant to bring up and refresh your memories with today because it's it's important to take note of the relative portions of all of the use particularly focusing on the Approximate 400 million gallon usage in runner park relative to the agricultural reuse and the geysers reuse Again the as I mentioned in a previous meeting the unnamed triangular wedge at the top is Essentially a drought reduction that normally that allotment of water would have gone to the geysers, but through coordination with Calpine Who understand very clearly the constraints that were under in this drought? They've been willing to work with us in and accept a reduced amount of water in light of the drought So I think it's worth showing there as well Switching over to just the irrigation side of the the prior slide This is the relative distribution of irrigated acres again on the order of 6200 acres the vast majority being pasture and fodder acreage Again, it's worth noting the urban components Santa Rosa urban and runner park urban Vineyard is shown although the irrigation application rates for vineyard are significantly lower than Pastures so again, this is acreage. This is not volume Something that I wanted to make sure is clear, and then there is another triangular way wedge up at the top It doesn't have a leader to it, but it's 217 acres of other Irrigated land and that includes things like some small vegetable crops that are grown with our recycled water Shifting gears I'd like to talk about the existing system as it stands in runner park right now Fonts a little small there, but I want to point out that it there is a pipe network a purple pipe network So to speak that exists within runner park, and it is a sub regional system It is a sub regional pipe network The first parts of it were installed in 1989 There's a low pressure zone and a higher pressure zone the low pressure zone was installed in 1989 And it was part of the disposal system at that time And it was a very necessary part of the disposal system as was the the subsequent Larger portion, which was installed. I think in 1995 higher pressure more extensive of a graphic which will show both of those Effectively as of today After the geysers having gone online and essentially to put it kind of Qualitatively all our water being spoken for it's not really a recycled water supply Recycle water irrigation in the urban environment reduces potable water demand that would Otherwise be required to provide irrigation. So the recycled water supplied for irrigation is effectively a potable water offset The 1995 agreement that was established between the regional and runner park term Was originally set to and in March of this year There was a subsequent extension through July of this year and as I mentioned earlier Jennifer Burke has spent a lot of time working on this actually since 2013 so this is Not a new thing for her by any means and these these discussions have been going on for quite a while There have been a couple of periods of time where the discussions went idle for various reasons But it has been going on for quite some time knowing that the original agreement was set to expire in March of this year The sub regional Division is a recycled water retailer and that is to say we're a producer and distributor of Of water and as you'll see there are some shifts that have occurred In Santa Rosa that changed the role of the sub regional system in the overall picture And I'll go over that but as the retailer the producer and distributor Subregional owns operates and maintains the distribution system in runner park We handle all the customer use processing meter reading and billing primarily and we're responsible for site inspection and regulatory compliance In conjunction with working with site supervisors for specific irrigation sites And this is a picture that shows the extent of the recycled water system in runner park the dark Bold boundary are the runner park city limits and the purple lines are essentially pipelines The purple circles are use concentration areas to give you a sense of where the use occurs The there's a leg which I don't know if I can very easily point to you that It comes off a little bit higher than my hand right here and goes off to the northeast and then heads east into runner park That is the original low pressure Truck essentially and it serves The northern port part of runner park the other leg that goes off and essentially fills in through Lateral mains the rest of our park is the higher pressure system that was installed in the mid 90s and you can see The lacuna tree and plant storage ponds off metal lane In the upper left of that diagram as well It's important at this point to talk a little bit about the recycle water system that exists within Santa Rosa's City limits as well in 2007 the BPU adopted phase one west of the Santa Rosa urban reuse system and there are a number of Zones associated with urban reuse expansion in Santa Rosa and the first one was phase one west was adopted in 2007 and in doing that we developed a wholesale retail relationship between Subregional and the local water division within Santa Rosa So the result of that is subregional became a wholesaler and local water is the retailer or distributor At the time and based on where we are today We consider that a model for future recycle water urban expansion supply expansion This is a graphic that shows the overall project area and then the phase one west that was the subject of the adoption in 2007 Again Santa Rosa city limits are shown in the bold black line and the lighter blue phase one west is What was adopted in 2007? So a little more detail about the two roles subregional being the wholesaler or producer and it's important to Clarify the wholesale wholesaler and producer essentially synonymous terms in this presentation and there's a shift in the semantics in this presentation where I really start referring to a wholesaler as a producer and a distributor as a retail sales Entity Subregional produces in the cells the water or local water Subregional owns and operates and maintains the transmission System including storage ponds and pump station up to the city limits essentially and We ensure regulatory compliance in that portion of the system whereas local water picks things up and becomes the retailer and distributor They own and operate and maintain the distribution system They read meters and bill of customers and they conduct inspections and ensure regular regulatory compliance in that arena So there's a transmission arena and a distribution arena and that's how the roles are distinguished So producer distributor concepts that apply to this agreement This slide is very similar to the last slide subregional would be the wholesale producer with Roner Park just the way it is as a Wholesale producer for Santa Rosa The same ownership operation and maintenance trend would continue Transmission system storage ponds and pump stations regulatory compliance obligations would be fulfilled in that portion of the the overall system Roner Park would pick things up and be the retail distributor and would sell recycle water to the end users ultimately So Roner Park would pay a wholesale rate for recycle water They could then charge their customers a retail rate as a retailer of recycle water Roner Park would own operate and maintain the distribution system within Roner Park's city limits Roner Park would read meters and bill customers and do the inspections and ensure regulatory compliance in that arena as well there's there's some more discussion about regulations, which I'll have shortly but Ultimately that is the same model that has been defined between sub regional and local water And it's what's proposed to be implemented with respect to Roner Park at this point This is a good point in the presentation to really talk about the purpose behind this how we're going to achieve this with your support and Go over some scenarios where you may have some questions. I'd like to answer potential questions right off the bat It's important. These are some points that I'm going to go into greater detail shortly But I want to touch on the fact that this is driven by supply not disposal I think it's important to discuss the system value versus operation and maintenance responsibility There's some details about customers that are relevant to discuss Overall infrastructure transfer, which will be a reiteration to some degree of a prior slide where I showed the overall Aerial view of Roner Park in the pipe network I will go into some detail about regulations and some potential future potential future wheeling of recycled water through the transmission mains in Roner Park This next slide is a pretty important slide in some ways. I think it's central to the presentation I think it's important to keep in mind the past essentially the pre geysers Arena that used to exist and that no longer exists since the geysers went online in 2003. I think it was Ultimately pre geysers versus post geysers and I think It's very important to keep in mind the idea of a residual sort of something that comes out of the waste water Treatment process versus a resource recycle water today is a resource particularly in our situation where all of our water is spoken for Looking at it from a residual standpoint is a little off-target in today's arena Particularly in our local area where all of our recycle water is spoken for Again the concept of disposal versus supply is important to keep in mind Ultimately when the system in Roner Park was used for disposal purposes it was priceless as of now operating a Supply system that was originally intended for disposal is really a subsidy of water supply in Roner Park For reasons that I touched on earlier where recycle water is essentially a potable water supply offset Without recycle water irrigation would be achieved by using potable water So recycle water plays a role in Roner Park's water supply portfolio, and I think That that's that's an important and in some ways very critical part of this presentation It's not really appropriating in the longer for it to be a sub regional expense Because it is a supply phenomenon. It is not a disposal system at this point Ultimately this agreement by transferring the system over to Roner Park Corrects a systematic evolutionary problem the system started out as a disposal system And it is not really a disposal system anymore It is a supply system supplying recycle water as a commodity and a resource as opposed to a residual from the wastewater treatment process Back in 2007 the future Was what it was, but we're in the future essentially now as it was perceived back in 2007 So it's appropriate to use the model that we developed in 2007 as part of the phase one West adoption of the recycle water plan in Santa Rosa Again as I mentioned urban irrigation Roner Park had Priceless disposal value, but it isn't a disposal system at this point It's now an urban distribution system, and it's appropriate to be owned maintained and operated by Roner Park And I think Roner Park fully acknowledges that at this point based on the conversations that we've had with Darren Jenkins the city manager of Roner Park and Mary Grace Pawson. I think they they would agree as well Urban irrigation O&M is really not justified for subregional disposal and wholesale purposes It's an infrastructure burden not justified for disposal needs The infrastructure value essentially was already realized In the past disposal mode that we were in but because we're not in that mode And there are some additional information that I'm gonna bring up The infrastructure value is already realized It's a relatively Straightforward process in some respects and complex in others when you get into the legal wording of agreements and such but Ultimately, this is as simple as an ownership and responsibility transfer that's handled through a legal and administrative process That does include customer communication There should not be any interruption to customer service. It's basically In the background essentially From a customer perspective recycle water should not be interrupted. It's it's strictly a a handoff of responsibility and ownership There will be and already has been some inter-municipal staff interaction for knowledge transfer and system familiarization And and that's ongoing. I think there's actually meetings being coordinated Sometime fairly soon Mike Sherman who is in the audience is is starting to get some of those meetings coordinated between the two entities Customers I did want to touch more on customers existing customers are still sub-regional customers through The extended term of the agreement Then we have user agreements with those customers Those customers are being informed of the pending transfer Any renewed user agreements include successor language So they're aware that through language in the agreement that a transfer is is likely and at the time when they were written Was at least possible New customers will be your owner part customers effective the date the agreement is executed Which by the way would not be today This isn't this isn't going to happen immediately today's study session is not requesting action. This is just an informative study session Sonoma State will be a owner part customer even though Sonoma State is not within Runner Park City Limits It's appropriate for Sonoma State to be a runner park Customer because they're essentially on the other side of runner park on the east side of runner park the sub-regional Transmission system is on the west side of runner park So it for a number of reasons that makes sense for Sonoma State to be a customer of runner park They have been informed of that change as well and we've been coordinating with runner park under that premise This is an exact duplicate of the slide I mentioned before but I figured it would be easier than flipping back Ultimately all of the purple infrastructure inside the black dark black boundary would become runner parks Infrastructure and they would have ownership maintenance Ownership of maintenance obligations for that it would be their system There would be Hand handoff points or points of delivery to runner park essentially where the purple lines intersect the black boundary Regulatory compliance is a critical issue that needs to be handled seamlessly and Subregional will provide training to runner park Mary Grace has a lot of experience with recycled water and and so I guarantee you that she would be a resource for her staff but subregional staff are Capable of and willing and have actually even started training On some level runner park staff Compliance would still be coordinated through subregional There is an NPDES permit that governs the system Runner park and runner park customers still have to comply with the NPDES permit issued for the subregional system all Necessary recycle water regulations rules regulations and the user guide that is published As I said the existing permit will still apply There's what if language or if then language if you will in the agreement that addresses as Situation that is moving in parallel. There's potential future enrollment in the statewide General order with respect to recycle water that has not come to fruition. It's a it's a parallel process both Santa Rosa and runner park are Attempting to enroll in that through notice issuing notices of a tent or I should say preparing notices of intent Then it's a separate but parallel process which is only just begun if that process reaches fruition The NPDES permit would not be the governing permit. We would be having a separate statewide general order Enrollments so there would be separate regulation and the agreement does include language to address that it's essentially if then language And if that doesn't occur the NPDES permit that currently governs the system would continue to I Want to talk a little bit about some potential questions and and what if What happens if the agreement is terminated for whatever reason? We have thought a fair amount about that and ultimately the way the language has been sorted out and and approved at the staff level Anyway, is that the system would be transferable back to Santa Rosa and sub regional Upon agreement termination That is important for wheeling purposes Particularly because there could be expansion in southern Santa Rosa or possibly even Katari We're wheeling through this system into south Santa Rosa or Katari could be critical So there is language that addresses that potential as well I Have a bullet item here, and I want to clarify that If ronert parks recycle waterman were to go to zero obviously that that would Be a pretty dramatic change the probability of that happening is essentially zero also But I wanted to use that idea as a way to describe additional capacity in the sub regional system that we have as of today The current agricultural customer base Ultimately can accept quite a bit more water than they currently are accepting under the drought conditions that we're experiencing right now They are allocated ultimately about 12 inches per acre Most of those customers could use up to 20 if not more than 20 inches per acre So the amount of water the ag community is using is on the order of half what they could use and Quite frankly would probably like to have So that is additional capacity in in essence Um, the geyser system also has additional capacity The flow rate through the geyser system fluctuates based on a contractual delivery schedule throughout the year But the average flow rate throughout the year is 12.6 million gallons a day The infrastructure And essentially the pump stations that deliver water to calpine has a capacity to move water at a rate of 16.9 17 million gallons a day All year long Except for our normal maintenance shutdowns. So my point there is that combine both of those Customer bases include an additional capacity of about two billion gallons a year The calpine increase there are tiers within the agreement that we have with calpines There would be contractual negotiations to really get into that additional capacity But in terms of infrastructure, there's a physical capability that exists today to move water at those higher rates So there is additional Physical capacity in the system as it is today So I just wanted to put that out there to clarify for the board that we're not talking about really dramatically impacting our Disposal capacity if we wanted to look at this in terms of disposal instead of supply I showed this slide earlier also and again, this is what we're anticipating delivering in 2015 and it gives you a visual way to to estimate or Essentially see what the relative usage is but keep in mind that with two billion additional gallons of capacity It's significantly more than what would be In the rona park urban system if we were only looking at it as a disposal system And as again, I've mentioned this is a supply situation that we're talking about Figured I'd touch on schedule a little bit on june 11th Mary grace informed me that rona park council's water issue subcommittee met and was extremely supportive of moving this agreement forward two days ago The sub-tact discussion occurred and the sub-tact had unanimous support and they were given essentially this exact same presentation Same information the unanimously supported it today. Obviously, we have the bpu study session Again, no actions being requested, but it's a Best opportunity to start to engage on the topic and and discuss it and answer questions We're proposing to take this to the bpu contract subcommittee for review on june 30th Um rona parks council final final consideration is scheduled to be on july 14th And this will be brought back to the bpu in final form for final approval on july 16th So with that be happy to attempt to answer any questions Participate in any discussion that you'd like and we do have mary grace and jennifer available To assist with questions as well Board member doubt Okay uh deputy director prince I'm curious about the wheeling it this i'm addressing page 21 of your powerpoint presentation and It arose in my mind as I went through this earlier When I look at the system that goes through rona park at this point um You could get to katati either by going around on the west side of katati We're using some of that existing structure or you'd have to go through the system that is in rona park I suspect some of the same things could be said about Southwest santa rosa how we would get water recycle water to those regions What my concern is is that I would I would hope that the agreement that is being uh Developed at this point is going to take those possibilities into play So that we don't have to renegotiate a whole new agreement In the event that katati wants to get into the recycled Program as a distributor and further Of santa rosa's recycle water program so You haven't really addressed if we're going to have this covered in an agreement that it's a potential And that everyone is aware that it is a potential rona park and the sub regional system In terms of wheeling to either the north end of rona park or the south end of rona park Ultimately, all the agreement does address is Whether or not the system would be handed back to sub regional for wheeling purposes Well, yeah wheeling isn't there Mm-hmm I I apologize that I didn't make that clear wheeling is addressed Aside from wheeling needs that would exist if the agreement had been terminated. So yeah, either way wheeling is addressed under either circumstance Board member holt Is there a current value of the System that's currently owned by santa rosa To rona park. Uh, is that in the agreement to transfer of monies in any way? No No, there there is no price to be paid for the infrastructure in the ground So we're essentially giving it to them Ultimately because it's no longer needed for disposal purposes and that's why I had the why slide the the system is not being used for its original purpose ultimately anymore It's a water supply system That that is meeting a potable water offset for rona park, but it isn't it isn't a necessary part of sub regionals Disposal portfolio at this point. Oh, I guess the mic isn't there you go yeah, so Given that there's some value in the system for system valuation for bookkeeping purposes are we writing Writing this off or do we carry that as an line item of value in the current system evaluation? I don't believe we would be carrying that forward It would be infrastructure in rona park that we wouldn't be carrying on Subregion bookings. Okay. So under our current valuation that will just be retired to zero I think that's the way it would be. Yes Okay my next question I guess is given the current Water drought Do you have any idea at all of the per capita or total? Additional potable water rona park residents would be using if they did not have this recycle system The the best way I would estimate that is the amount of water that we're supplying The amount of recycle water that that we're supplying and in 2015 that's 400 million gallons Approximately, so if that recycle water wasn't supplied and people were irrigating the the same way that they are now at the same application rates Presumably under the drought that it could be more severe because that would be a direct impact potable But what's the population of rona park being served? Right, I understand Residential they're totally used whenever we okay Okay, so Rona park already is has the has the ability in the drought just because they've been doing that for years great What I'm saying is that your water conservation Uh benefits by already having that system throughout your system Wonderful. Thank you Vice chair count Thank you for the presentation. Can you hear me? Yes, fine. Um, I appreciate all the statistics you gave They were really useful in this discussion. Um, I just had a couple of questions. Um About some of the things mentioned uh slide 15. I I agree with everything on the y slide I I did my my only kind of Interest is I I agree that infrastructure value has been realized by the historical past disposal need Related to that statement. Um, it says I I agree that the urban irrigation and rona park had a priceless disposal value So by definition The infrastructure value has been realized if the disposal was priceless But further than that have there been has there been any calculations anything back of the envelope just just to make everybody feel Okay, that The infrastructure value is far less than all of the maintenance costs that will have to Be required to update the system in perpetuity I mean it makes sense that it would be to me, but I'm just curious as to whether Um any calculations were performed We haven't done any calculations to that effect because in in terms of disposal need when you look at the the customer base that we've we've Discussed up here in in calpine um You could shut the system off effectively and save a lot of maintenance obligations right there But there is an existing Recycle water demand at the other end of that pipeline and so from a disposal standpoint It really doesn't have value from a supply standpoint It it has the value that Mary Grace is just touching on in terms of potable water offset But so we haven't really done a calculation because it's based on This presentation in the agreement is based on a philosophical value perspective of the system Value to run our park. They will be charging their users Money for the water a retail a retail rate above Yeah, the wholesale rate right and then they will also have to update maintain the system So I imagine that they have done some sort of calculations to the effect that the system would make Sense for them to continue running I I believe so and and that's something that Mary Grace may want to maybe want to talk to but I don't think they'd be taking it on if they weren't prepared to I I understand I'd be interested if any information on that front came available I'd be interested in and learning more about that I though again, I do agree that this is the right move for Santa Rosa It makes sense for Santa Rosa So regional is not in the the water retailing business and I and I and I agree that This is the right move, but Again, I am I'm just curious Thank you. I also just had a couple other questions So the pipe boundary map Um, there is a purple pipe that Goes toward the south I think and it just kind of enters runner park briefly and follows the border of the city And then it goes out to look probably add customers Um, how is that portion of the pipe going to be dealt with? I believe that it is not a point of delivery. It's Okay, okay I see it now I see now it goes on 101 Thank you. It didn't look like there was delivery anyhow, but okay and then This for example, this is it's a pretty significant point on Gallo vineyard property. That's Not in runner park by any means, but yeah, but supplied by Sub regional water or sub regional great and then Just a clarification question If the statewide general order does go through does that mean that The system will not require an npdes permit at all or The recycle water system would be governed under the statewide general order permit and not npdes any longer Right and that's is that a new regulation for our recycled water across the state? Yeah, it's a it's a statewide general order, which municipalities can enroll in Instead of having a specific npdes permit and it sounds like it's more appropriate for recycled water customers as opposed to the npdes So if any discharge it We think so. Yes. Great. Thank you very much. Any other board questions? Any further comment? Oh go ahead I Any systems that were not turned on I saw the water going down the street Many many doing that and I also know there's about 200 photos of over irrigation in the park that answering And maybe not all we know that but I would really hope that it's other than that it can cause all the irrigators to be more conscientious about how they distribute the water I just have to say irrigation spray systems are really bad news. I'm not even sure if any of them work without spreading water all over the place Certainly, I think a much better way of applying the water is to drip air irrigation and there's much less opportunity to have that happen. But nevertheless, I'm hopeful that charging I don't know what the charge is You got it I don't know if they're different or if they're not following the calculations This is more expensive to them. Um, it would encourage them to Uh, encourage them to use less recycled water because It's not good and it's not healthy to have extra water going all over the place Thank you we we do work with site supervisors and Urban reuse sites are on a pretty strict water budget and it is true that the sprinkler spray patterns sometimes do get on the sidewalk and we Have crews that go around and monitor that and work with site supervisors to correct problems Has been with us For about three months and that position is budgeted to become permanent in our 1516 fiscal year budget really Justified in large part by the responsibility. We would be taking on should this transfer agreement go through Great well, let's hope that runner park can do as good a job of policing as santa rosa is doing Any further comments or questions? Thanks for presentation. We'll look forward to discussing it at the upcoming contract review subcommittee and then having to come back For an action item in july Thank you. Okay We have no staff briefings Can we have one consent item On the summerfield road horseshoe drive sewer main replacement Second i would move approval of the consent calendar second We have a motion by board member dowd seconded by board member hold to approve the consent calendar all in favor say i I any opposed Passes four oh We have a report item Uh termination of the professional services agreement with bottom line utility solutions Mr. Vogler are you handling that one? Yes Great Good afternoon chair galvin members of the board So the report item before you today is a termination of the professional services agreement with bottom line utility solutions ink and little background Back in july of 2014 the professional services agreement with bottom line utility solutions ink Acronym is blues the psa with blues was approved by bpu on july 24th last year And it was subsequently amended in january of 2015. The amendment was to update the scope of work The the overall project intent was designed as a pilot program to install 500 ultra high efficiency packages which consists of toilets shower heads and aerators and these Packages would be installed in city of santa rosa water customer residential homes The program at the time that the customers were signing up for the program Allowed them to either pay for the entire package in full or they could opt for a monthly payment plan through their water bill So subsequent to that late in 2014 the department of water resources issued a grant energy solicitation for municipalities to submit projects that would Boy that light is just getting me would allow Would allow potential funding opportunities for projects that would save water and energy and so Water department staff got together and kind of had a furious round of getting the grant proposal put together They got the proposal submitted On february 10th of 2015 the council adopted resolution 28602 authorizing the submittal of the water energy grant to dwr After that on march 31st. We received notification from dwr that the city was awarded approximately 2.5 million dollars To install water energy efficient fixtures in the city. So it was great news You know, we're really looking forward to this the grant program We'll provide for installation of roughly 4400 fixture packages in our residential customers homes And it also has approximately 250 Pre-rent spray nozzles for facilities that are restaurants or food production facilities So given that We had a program that was allowing customers to participate and fully finance their own installation Of water efficient packages And now that we're going to have very soon an opportunity to provide these same packages for customers free of charge There was a bit of a disconnect and and so we had some conversation and it seemed appropriate that we Discontinue the pilot program with blues Because we'll be able to provide the same services and fixtures A little bit later on this year at no charge to our customers So on the 21st of may staff contacted blues to advise them that we would be recommending to the board that we terminate the PSA So the recommendation before you right now By motion that the board approve the termination of the professional services agreement with bottom line utilities solutions Inc And happy to take any questions or comments Any board member questions or comments board member holt? Yes From your comments why I understand bottom line has already provided services to some customers and so Are there going to be how are we going to work out the reimbursement to those customers? So the way that the program works is anybody that is signed up for the program and has received the fixture packages installed at their house They are responsible for paying for those items And so at the time of the installation the plumber had a certification form that was developed With the plumber being blues was developed in conjunction with the city And the customer ops at that time whether or not they want to pay for the entire package or if they want to Upfront or if they want to pay in monthly installments And so what happens is the customer either way remits payment to the city as the city receives payment For those items from the customers the city then turns around and forwards That money to blues to compensate them for the work that is done so currently We've had a total of 19 customers that have participated in the program We had 12 customers that opted to pay for the program upfront And we had the balance of the customers that opted to pay Through the monthly installments of the monthly installments were over a period of 60 months and it's a Bill or a charge that's added to the bill each month So is there interest on those payments? There's no interest. There's a slight Difference between if you pay upfront versus the monthly charge. It's a very small amount of money It's not an interest charge the idea at the time That was considered by bpu is they wanted to make The monthly payment a rounded off number So for example, if you selected one fixture package in your home You would pay seven dollars per month if you selected the two fixture package You would pay twelve dollars per month doing the actual math It would have been six dollars in change And 11 dollars in change and the idea was to round it up to the next whole dollar So it was easy to understand for the customers and also would in a very small way would partially offset The amount of energy and time spent by city staff In managing the monthly payment system. It's going to be like a billing fee Yes Yeah, essentially It does not cover the city for its incurred expenses by any means, but it's a small piece Okay, so moving along then once the grant comes through Will the city staff do this work or will it be contracted out? Well, what we're going to do we would issue an rfp to allow plumbing companies to compete for the work And so we're going to open it up It's possible that blues might want to compete for that work In fact, when I talked to them over the phone, they indicated that they were interested In having a future relationship with the city when the grant money became available So I would expect they might go after that work as well Right, so amending the current agreement does not in the work set I'm excuse me amending the current agreement to have them continue to do the work under the new grant That's not in the works. No, it's not The existing agreement and I'm sure uh, you know, Suzanne could probably talk a bit more about this But it was very specific Regarding the how the program was constructed and that it was just for this pilot program for 500 fixtures When the city gets the grant money, that's it's a completely different thing and it has different requirements That are associated with the state providing the money that we'll need to meet and one of those I'm sure will be to provide an equal playing field for interested plumbers To be able to solicit for that work Thank you I take it the 19 People that opted into the pilot program are not eligible for the any rebates through their reimbursement through the Grant that we're going to receive It's something that we've discussed. We don't have an immediate answer for that We feel that once the grant money becomes available and we see exactly what the stipulations are surrounding the use of the grant money We're going to be in a better position to understand what if anything we may be able to do to compensate the customers that have already participated Any other questions Not will entertain a motion ask the termination of professional services agreement with bottom line utilities Incorporated second Motion by vice chair account seconded by board member holt all in favor say aye. Aye. Any opposed? Motion carries for oh, thank you. Thank you Public comments. I don't see any members of the public still here We have no referrals any written communication Hearing none any subcommittee reports The contract committee will be meeting on June 30th. This was Mentioned earlier by mike board member down the budget review subcommittee will also They have a scheduled meeting and with two additionals if necessary and so we'll be starting here later this month To begin our analysis Any board member reports, yes board member holt given given the The way the drought is Continuing and Letter to the editor. I see in the paper and comments. I've received Concerning new construction I would like to At some future date have the board consider That new construction be offsetted or partially offsetted by Making water reducing Consumption reducing Facilities improvements in nearby structures nearby neighborhoods that sort of thing. I'd like to ask the board to Consider that at some future meeting I think that's something we can at least direct staff to look into and and Consultation with the director we can Figure out what to handle how to handle that I would just like to thank the board and it's in particular vice chair count for a covering for me while I was gone last month I knew we were in good hands and I appreciate all the hard work. Everybody did while I was gone. So directors report Thank you just to clarify We do have some conflicting meetings coming up So the June 30th contract subcommittee meeting that board member holt referred to may be moved We're looking at a potential new date because it does conflict with the budget subcommittee meeting That's happening at the same time and unfortunately staff has to be in both places at the same time So we're we're working through that. We'll be in contact with you on that that date Just wanted to give an update on last night the budget was passed the 2015 2016 city budget That included our center was a water budget as well I want to thank our staff for all the work they did to get to that point linda reads especially for pulling everything together and And getting our presentation ready for the council, which was really well received With that said we had a few minutes to celebrate and now we're back on to the budget subcommittee meeting for to discuss rates So we're right back at it. So thank you for all your work getting us getting the budget approved And looking forward to the next few months to discuss rates One of the other things that's going on right now just as a heads up the we're in the second year of supporting The mike hauser algebra academy and this is a program that we partner with the chamber of commerce And we're we we are a host site which basically means that we host a group of kids It's three weeks long. So a different group each week And these are students that apply for this program. It's I think it's typically In english the second language students that apply for this program and the goal is to get them ready for high school With increasing their math math skills and math math abilities the Other businesses that are involved in this were were involved, but there are other businesses such as metronic A keysight JDSU and some other large companies in town that are also part of this program So we're in in good company and what the program does is it's a one a week long And the students come in and they use our room here Actually two rooms over and they learn they have a teacher they learn do math math exercises learn how to They increases over the weeks and we have people come in each day for about 30 to 30 minutes to 60 minutes To give an example of how we use math in our jobs So we have different employees coming from different areas of our organization To talk about water quality storm water treatment waste water treatment water quality Um I'm trying water conservation Operations, so we have each group come in each day and talk expose the kids to what we do for living But also how math is an integral part of our operation So it's been very successful. I mean every week each class sends us a photo With their signatures so this is the first week's class and We get one of these each week, which is great And each kid writes us a letter about what they learned what it meant to them and What they thought their their favorite part was and it's pretty inspiring to read through these letters So if you're ever interested we'll have about 80 of these here pretty shortly If you want to sift through But it's a great program. We're proud to sponsor it and thanks to staff for stepping up and spending the time to do it I think it's a great thing to give back to Chairman galvin, I could I You may first of all having had a very tough algebra teacher When I was in high school I was thinking as you were making that presentation director doing that one of the students in the class that I was in raised her hand and asked The teacher to call upon her and she she says what do you what's your question? And she said well, I don't have a question I just want you to know that I've been working the last two or three weeks and I've found out the value of x Miss bassine the teacher said she would look talk to her after class At any rate before you adjourn chairman, I would Ask if you would consider having a moment of science science sounds and condolence to the jake hour family for His term as a council member and vice mayor for a period of time And possibly utility department From the bpu could and bpu could send A letter of condolences to his family I think that's totally appropriate And with that we'll adjourn the meeting of the board of public utilities in honor of the memory of jake ours