 Good afternoon. I'd like to call the meeting of the Board of Public Utilities for the City of Santa Rosa to order if we may have a roll call vote please or roll call Chair Galvin here vice-chair Arnone here board member Baden Ford Here board member Grable Here board member Walsh Here board member Watts Board member right here Good afternoon everyone a reminder to please mute your phones and microphones when you're not speaking put away your cell phones and your personal computers Item number two statements of abstention by board members. Do we have any? We have no study session the minutes for November 18th will be entered and approved But we'll first make sure that there's no public comments on those minutes So we're now taking public comments on the minutes approval if you wish to make a comment via zoom Please raise your hand if you're dialing in via telephone, please dial star 9 to raise your hand Secretary Aitha there are no public comments. Okay the minutes will be accepted We'll move to item 5.1 Deputy Director Savoni Good afternoon chair Galvin members of the board Introducing item 5.1 our water and recycled water supply update Peter Martin Deputy Director of Water Resources and Emma Walton Deputy Director of Water Reuse will be presenting Great Thank you for the introduction. Good afternoon Chair Galvin and members of the board I'll just give you a real brief water supply update on heels of a nice little storm here So I'm getting some rain and our reservoirs So some positive outlooks there Next slide, please So I think I just briefly mentioned last time we had a water supply update that summer water did file a another temporary sea change petition on November 18th Just to remind everyone the existing order that was filed I believe it was back in May of last year expired on the 10th of this month Just and the impetus for that is a few things Obviously the Potter Valley project is experiencing equipment failure That this PG&E notified some water within the last few months at this particular issue and they're not generating power So therefore They're only bypassing the minimum flows as required under FERC So, excuse me the federal federal energy regulatory commission permit requirements For their for their operation of that powerhouse And then just a you know, as you know storage levels remain critical In both of the reservoirs for snow water Therefore, they are requesting relief from the upper and lower russian river in stream and moonflow requirements under their water rights So specifically This request this time based upon those constraints mentioned above was to again Uh, base the hydrologic index for which determines What type of water year it is and those and stream flows on lake minnesino storage instead of Lake Pillsbury's inflow through the month of June 1st And so that would mean uh critical Water supply year conditions exist today Instead of dry. Uh, so if you were to base it upon Lake Pillsbury's inflow today It would kick The water year type into dry and therefore snow water would have to release more water as a result um, I didn't get a chance to Incorporated into this presentation, but I do have some good news and that snow water did receive A change order from the state water resource control board at the end of last week And I didn't have time to include those details in my presentation today But I can just kind of summarize that there will be no additional requirements this time beyond Uh, what the contractors are already doing So the one thing that is required is that some water within 30 days of the issuance of this order Um, it's going to have to send a report into the state water resource control board Um, just documenting what all the contractors and some water are doing in terms of the implementation of their water shortage contingency plans Um, and just making sure that it reflects The possibility or likelihood that dry conditions could remain into 2022 and so, um At this time as you're likely aware all the contractors are much like santa rosa water at a 20 percent Uh, reduction or above so we're on stage three of a water shortage contingency plan um, there's no reason to uh move from that position at this time and nothing being required beyond that next slide In terms of uh lake mendicina storage, uh It, uh, this was uh as of monday. It was about 35 7 percent of the target water supply curve I did check today and it's uh now over 26 000 acre feet With releases at about 25 cubic feet per second um That means they've picked up about, uh, I believe 5 000 acre feet just since monday. So, um conditions are improving So there's some a little bit of good news there With some more rain on the way next week. Um, and it picked up about another uh, six or seven percent of their target water supply curve next slide in terms of, uh, lake sonoma storage Storage is about 127 000 acre feet or almost 128 000 acre feet And uh, the releases today are at about 75 cubic feet per second. Um, they The reservoir picked up about another 7 000 acre feet of storage just since monday Um, and that's about another two or three percent of the capacity Now putting it over 50 of the water supply capacity For this time of year. So, um, some positive outcomes from the recent storms next slide I just wanted to share this graphic. Uh, this is a new graphic that, um, snow water is incorporating into their routine updates on their web pages about storage and their reservoirs As you can see, uh, this really graphically represents the fact that We're even though we've seen some early rains this year. We're still not even where we were at this time last year. So, um, definitely a long way to go Folks are continuing to conserve. So there is some good news there. Um, and we're just hopeful that, um, we continue to see additional storms beyond this Next slide so, um, in terms of our targets, uh, for last month In november, Santa Rosa residents reduced their water use By about 35 percent as compared to 2020 And then cumulatively, uh, since july Uh, water use has been reduced by about 23 percent compared to 2020 for that same time frame. Um There's probably some good reasons for that as you're likely aware We had some really early rain in october I did kind of just for your information and statistical knowledge kind of look at the You know the evaporation Transpiration needs or plant needs for the months of october and november In october typically, you know, plants water needs would be about three and a half inches of water We received nearly 11 inches of water during the month of october And then, um, you know the same kind of similar story for november The 10-year average would be about 1.8 inches and rainfall was over three inches. So, um, you know in 2020 We were definitely working under a deficit in terms of rainfall And so i'm assuming that folks turned off their irrigation very early this year as a result. So So so that's probably Why you see such a departure in terms of water use for those two years Um, and I think that concludes my portion of this presentation and i'll hand it over to deputy director Emma Walton Thank you. Deputy martin. Good afternoon chair galvin and members of the board Just here to provide a brief update on our recycle water supply Next slide, please So our production curve, uh for this year is Starting out really well. We are above average for both october and november and are projected to be Above average for december as well I kept the curve on there from last year just kind of put us in comparison The other thing I put along the bottom of this curve is the minimum that we have ever experienced or we have on record, excuse me For each of the given months. So the lowest we've ever produced in october the lowest we've ever produced in november december and so on And it's interesting that uh last year almost coincides with That minimum curve. So last year was just a very low production year for us this year is looking much better Next slide, please Similarly our storage is very healthy. Um, we are about 700 million gallons in storage right now We are keep hoping to keep this kind of This curve curve going to get us closer back to average as we move into the irrigation season But this at this time we're looking really good in storage Next slide, please So just some quick updates. We are on track to meet the 2021 geysers contract We only have uh four 15 days left on that contract and we are on track to meet that We also successfully met all of our agricultural allocations for this irrigation season We are already starting to prepare for next irrigation season We held a frost user meeting an informational meeting on december 7th to start conversations with our frost users Yesterday we held a recycle water ad hoc meeting with the members of the board for part of that ad ad hoc to start planning and preparing for next irrigation season And we'll continue to bring you updates From the what the decisions that are made as part of that ad hoc to the full board As I mentioned, we are planning for the the 2022 frost and irrigation season And are planning to have information out to all of our users Early in january Just to make sure that we continue to communicate with our users early and often so they can adequately prepare Next slide, please That's all the information I had to share with you today, but be happy to answer any questions Thank you any questions from the board of either deputy director martin or deputy director walton Very good. Let's keep keep those curves going up We'll now open it up for public comments on item 5.1 If you wish to make a comment via zoom, please raise your hand if you're dialing in via telephone Please dial star nine to raise your hand Secretary atha we have no public comments Very good. That'll conclude 5.1. We'll now move to the consent calendar We have uh five items on the consent calendar If there's any board questions or comments, otherwise I'll entertain a motion to approve the consent calendar I'll move to adopt the consent calendar second We have a motion by board member right and a second by board member watts We'll now open it up for public comments on item 6 If you wish to make a comment via zoom, please raise your hand if you're dialing in via telephone Please dial star nine Secretary atha we have no public comments. All right. May we have a roll call vote, please Chair galvin. Hi Vice chair anoni. Hi board member badenford Hi board member grebel Hi board member waltz Hi board member watts Hi board member right Hi Very good. That'll take care of the consent calendar We'll move to item 7.1, which is one of our first report item Deputy directors of any Thank you, chair galvin Introducing item 7.1 Project work order approval professional engineering design services for carly and peter springs well rehabilitation Casey clayborne associate civil engineer will be presenting afternoon mr clayborne Good afternoon chair galvin members of the board Today i'll be presenting on the carly and peter springs wells project and answering any questions you have at the end Next slide, please So just to put us in the in the neighborhood Our utility station for our carly and peter springs wells Is bounded by carly road and idaho drive on the north and south And by peter springs park and herbert slater middle school To the east and west And this utility station has two groundwater wells the carly well, which resides On our city parcel there at the nexus of all these different Neighbors and the peter springs well, which resides in a vault in peter springs park Which you can see just to the north on the edge of carly road Both of these wells are currently permitted for emergency water supply But major improvements are needed to ensure reliable future operation in the decades to come Next slide, please Unfortunately due to some geotechnical issues the station plumbing has deformed And that's disconnected the peter springs well from the potable water system And it's unlikely that this geotechnical issue and the you know sustainable operation of this this well can continue Long term without removing and rebuilding all the existing systems on site Next slide, please Thank you So first off on our project objectives We want to ensure that the carly well is a reliable source of emergency supply So of course the first order of business will be solving that soil settlement or expansion issue To make sure that whatever new assets we build on the site aren't going to be affected by Geotechnical problems Then we'll be replacing the existing aged carly well with a brand new well Perhaps one that can Provide even more flow That's a that's a possibility that we're we're hoping for And then of course just providing all the supporting infrastructure the chlorination electrical control systems To support operation of that emergency well and peter springs as well Next slide, please And then our other objective with this project is to reconnect peter springs well as a backup emergency water supply That well will remain in place, but we'll be making improvements to the well and the The well house the well supporting infrastructure to comply with The most current gdw requirements So again, it's it's permitted and we're permitted to operate that as an emergency drinking water well because It's been around we've been using it for decades, but We want to bring it up to speed to the most modern standards while we're doing this project Next slide, please a couple of Possible added value items for us to explore as we move through the early phases of design simple one is Can we you know on this smallish? Parcel of land that we're using Can we construct an additional access driveway on the south? front on the south property line going to Idaho drive to supplement the existing driveway on carly road And that'll just allow us more operational flexibility and a more practical way to Deliver liquid chlorine for instance or to bring in maintenance rig to service the wells And then a major added value item for us to explore is can we use these these What will be new and improved wells? To augment water supply in a drought. So in addition to providing emergency flows during an earthquake or another unplanned interruption from Sonoma water supply Um, can we augment our existing water supplies in a drought which Um, we'll have to explore additional water quality and permitting considerations But it's something that we want to bake into this work so that we're not designing ourselves Out of that possibility Next slide So again need to start out just by Sorting out the geotechnical issues so that those aren't a problem in the future um as part of Redoing all of these assets will be removing the existing station building generator pressure tank site piping There are a number of redwood trees on the site and we'll see a photo in in a bit And that existing carly well will need to retire that per ddw and county requirements for well destruction and abandonment Next slide, please. Thank you Then we'll be installing that new carly well brand new Drilled well and obtain a permit to operate that well from ddw We'll be installing a new treatment system to provide chlorination, but We'll also be evaluating the water quality Just to ensure that Whatever treatment system we install will meet all water quality standards Um in the event that more treatment is required in uh in addition to chlorination um Will be of course installing brand new electrical control and excuse me electrical and control systems With a variable frequency drive to replace the existing pressure tank so that'll improve operations and sustainability for operations And that'll just allow us to run the pump at a variable rate in order to match uh the demand That will have a new backup generator new site fencing paving all the other uh various appurtenances that a groundwater facility requires Next slide, please So we're the proposed schedule we have um Excuse me We have west yos on board to provide design services under this um project work order from next january all the way through november of 2023 so almost two years And that extended schedule includes engineering services during construction And the that construction of these new assets will consist of two phases the first phase of installing the new carly well this coming summer um and that'll just be in order to uh Do as much work as we can and gather as much information about the new well as we can Before we need to shut down all our existing facilities Because just in the just in case there's an earthquake or another event we want that um Existing facility to have as much uptime as we can manage And so that second phase the new well station construction will be in may 2023 roughly Next slide, please A couple other considerations i mentioned those trees you can see in the photo on the right there Um, unfortunately these trees just really crowd right around the station building. There's maybe four or five feet difference Um, and those will have to be removed for construction Um, especially with the geotechnical considerations on this particular project And as with many projects, but especially here on this small parcel with a major project We'll need to coordinate with our neighbors In in this residential zone and also our neighbors peter springs park, which is city park And hervert slater middle school So it is recommended by the contract review subcommittee and the water department That the board of public utilities by motion approve a project work order under the master professional services agreement with west coast and associates central rosa california for professional engineering design services For carly and peter springs well rehabilitation In the amount not to exceed 905,441 dollars Thank you, mr. Claywarm. I'll open it up now for any questions or comments by the board Hearing none. I'll entertain a motion to approve the recommendation and the contract I'll move that we Approved the recommendation as stated all second Thank you. I have a motion by vice chair ononi seconded by board member right At this time we will open it up for public comments on item 7.1 If you wish to make a comment via zoom, please raise your hand if you're dialing in via telephone, please dial star 9 to raise your hand Secretary aether do we have anyone we have no public comments May we have a roll call vote, please chair galvin. Hi vice chair ononi. Hi board member badenford Hi, board member grable Hi board member walsh Hi, board member watz Hi board member right Hi Very good. Thank you, and thank you again. Mr. Claywarm We'll now move to item 7.2 deputy director shavoni Thank you chair galvin introducing item 7.2 Approval of second amendment and restated memorandum of understanding for best and final price of ultraviolent disinfection equipment Laguna treatment plant disinfection improvements project Jason roberts supervising engineer will be presenting Thank you deputy director shavoni. Can everybody hear me okay? Very good Thank you chair galvin and members of the board. I'm jason roberts supervising engineer with capital projects engineering And I will be presenting um the second amended and restated memorandum of understanding For uv equipment selection For the ltp disinfection and diversion project Next slide, please I'll provide you with project backgrounds Since the first mou Um, so we'll go over that original memorandum of understanding as well as the subsequent value engineering study in 2017 We'll discuss the amended and restated memorandum of understanding which was executed in 2020 And then We'll talk about the new memorandum of understanding that i'm presenting to you today Impacts to schedule and ultimately a recommendation Next slide, please So the ltp is uv disinfection system is 22 years old it's aged and has been Derated by the state and Needs to be replaced so in january of 2016 Uh bpu approved a design contract with corolla engineers to replace ltp's uv disinfection system In november of 2016 the city pre-selected calgon carbon As the preferred uv equipment supplier through a competitive process In that same year bpu executed a memorandum of understanding For a pricing guarantee as well as Professional services agreement with calgon to provide design support services In mid to late 2017 Based on initial cost estimates of the uv system the city decided to perform a value engineering study To examine alternative disinfection technologies and systems In may of 2018 during that study The 2016 mou expired along with the pricing guarantee Um in 2019 following the completion of the study And a recommendation to continue with design for replacing the uv system The design contract with corolla engineers was amended And an updated rfp was issued to calgon for equipment procurement In august of 2020 Based on that rfp and amended and restated mou was approved and final design of the replacement system continued Um in july of this year calgon carbon uv technologies Was acquired by denora and the name was changed to denora uv technologies And in september of this year, uh, the city received a best and final price Uh for the uv system from denora Between september and december um negotiations took place between the city and denora to secure final pricing in terms for uv system procurement Next slide please So summary of the original mou with calgon in 2016 The original mou guaranteed an equipment price 4,656,500 dollars For a term of 18 months and this price was to be included in contractor bids for construction of the replacement system Also included a provision for a 70 000 dollar professional services agreement for calgon to provide design support to corolla and the city and preparing Design and shop drawings Again in 2017 a value engineering study put the design on hold as alternative technologies were evaluated And after that study was completed the decision was made to Ultimately made to replace the ultraviolet disinfection system And that 2016 mou was expired Next slide please So following the completion of the value engineering study design commenced in 2019 With assistance from calgon in 2020 calgon responded to Responded to our updated request for proposals with an updated equipment price And bpu ultimately executed an amended and restated memorandum of understanding establishing guaranteed equipment price That price was for 5,634,700 dollars and was guaranteed for a period of 22 months This pre-negotiate pre-negotiated price to be included in all contractor bids and That mou also included a provision for a new psa for design support services And that psa is still active Next slide please So a brief timeline between august 2020 which was the execution of the first amended and restated memorandum of understanding and today Between august 2020 and may 20 2021 the design progressed from 90 to 100 percent In june of 2021 the best and final price was the best and final price was solicited from calgon to account for some final design changes made by corolla and and the city In july of 2021 calgon carbon Then the name of calgon carbon uv technologies was changed to denora uv technologies through an entity name change next slide please between september and december of 2021 city staff Negotiated with denora best and final price to include increased steel prices totaling 288,791 and 28 cents These prices are driven by a pandemic pandemic driven supply chain issues supply chain disruptions and material price increases that we're seeing across all sectors With steel prices in particular increasing approximately 30 percent So following a negotiated agreement on price the city did receive a best and final offer letter from denora Incorporating that increase in steel prices And which comes to a final equipment price of 5,923,491 and change for the uv system We also negotiated a price guarantee extension until december 31st of 2022 Again, this price will be used by all contractors in preparing bids And ultimately used for procurement of equipment Next slide please So just a comparison table between the first amended and restated mo u And the provisions of the new mo u It is a binding commitment between the city and supplier that hasn't changed Um, the guaranteed equipment price has gone up by 288,000 that increase in steel prices Um, the price will be held until december 31st of 2022 Still no payment at this time The contractor will ultimately be procuring that equipment through the construction contract And One of the things that is in the is part of the agreement is that If steel prices do go down between now and the time equipment is procured then That cost reduction will be passed through to the city And that $86,000 psa that came with the first amended and restated mo u is still active And will be used to facilitate continued design and support services from calgon Next slide please Impacts and schedule funds for the purchase of the equipment aren't required at this time But the overall construction estimate of the projects approximately 50 million dollars You know includes that equipment costs There's no environmental action under sequel. Um, this is not essentially not a project We're just negotiating the procurement of equipment with this mo u And for the schedule the final review of bid documents is in progress So should bpu approve this mo u? We estimate issuing construction contract for bid in early january And construction is estimated for spring 2022 through 2024 possibly in the 2025 But uh, hopefully not Next slide please So just some of the remaining critical milestones obviously bpu approval of this second amended and stated memorandum of understanding Um, should the mo u be approved again? We're targeting early january to issue construction contract for bids Uh, the january issuance is is fairly critical in order to select a contractor Uh issue a notice to proceed in early spring targeting march Uh and starting construction as soon as possible so that we are well positioned to Uh as well positioned as possible to execute this project within the current Three construction season schedule outlined by um our consultants um The new mo u price expiration date of December 31st Uh, just provide adequate time for the contractor to Um procure the equipment Plan the installation and deal with any unintended uh complications Next slide please With that as the recommendation The transportation and public works department and the water department at the board of public utilities by resolution approve a second amended and restated memorandum of understanding with denora uv technologies The guaranteeing and equipment purchase price of $5,923,491 and 28 cents until december 31st of 2022 Slide please Thank you for your time. Um, I'll open it up for questions and I do have representatives of denora available To assist with that Thank you, mr. Roberts. We'll open it up now for any board member questions or comments on item 7.2 board member grable Yeah, just a quick question on the on the math. Thank you for the presentation and I know that this has been a struggle nationwide in terms of supply chain and cost estimation for both materials and production labor and shipping and all that What's the what's the percentage number again the percentage increase because it seems like it was smaller than expected actually Uh, based on the indexes that That were provided to us. Um, it was on the order of 30 percent for some of the raw steel materials Okay, but and that's gone down though from it was it seemed like it was 50 percent a few months ago or something like that But is it is it actually are those? Um, those cost increases for steel and those things are those Going back down. I guess is what I'm asking Well through discussions. They're not anticipated to um, I think I don't think anybody wants to you know Anticipate that costs are are going to go down But if they do again, it is written in an agreement that the city would would see the benefit of those cost reductions Right, specifically it's something like raw steel. Obviously where it's on that index of materials that all the different Suppliers and subcontractors use. Okay, but but that's written into the agreement. Yeah, thanks for clarifying I was just an interesting thing because I know that that has been A pretty wild ride for most builders and contractors in in both public works and residential and commercial construction, so And then what's the uh remind me again what the lifespan is of the uv equipment um Expected lifespan Yeah, I I think it's probably on the order of 20 to 30 years Somewhere in that in that regard. I mean replacement parts along the way, of course lamps are going to need to be replaced but overall That that's probably the expected life of the system It's great. Thank you You're welcome any other board member questions or comments If not, I'll entertain a motion to approve the resolution that we have before us Mr. Chairman, I move that the board of public utilities by resolution Approve a second amended and restated met moran of understanding with the nor a uv technologies Guaranteeing an equipment purchase price of five million nine hundred twenty three thousand four hundred ninety one dollars and twenty eight cents Until december 31st two thousand twenty two Hello second Thank you We have a motion by board member wall seconded by board member watts At this time, we'll take public comments on item 7.2 If you wish to make a comment via zoom, please raise your hand if you're dialing in via telephone, please dial star nine to raise your hand Secretary atha, we have no public comments. May we have a roll call vote, please chair galvin. Hi Vice chair anoni. Hi board member badenford Hey board member graybull Hi board member walsh Hi board member walks Hi board member right Hi Very good. Thank you again for the presentation. Mr. Roberts We'll now move chair galvin We'll now move to item eight, which is public comments If you wish to make a comment on item number eight, please raise your hand if you're dialing in via telephone, please dial star nine Secretary atha We have no public comments. Thank thank you. We have no referrals. We have no written communications Subcommittee report as you heard through a couple of the presentations and in the staff reports The contract review subcommittee met on December 8th And we looked at several of the items that were on the consent calendar today and also the well rehab project. So We'll be I think reconvening that subcommittee after the first of the year for some additional work Any questions regarding that? All right, we'll take public comments then on item number 11 the subcommittee report if you wish to make comment via zoom, please raise your hand if you're dialing in via telephone Please dial star nine to raise your hand Secretary atha, there are no public comments. Okay. Thank you any board member reports Okay, then we will move to the directors report deputy director shavoni Thank you chair galvin I wanted to inform the board about a shift in staffing that will take effect on january 2nd of 2022 For several years there have been discussions about moving the water billing team from the finance department into santa rosa water And after careful consideration, we are now in the process of making this move a reality There are several factors to consider such as budgeting gain deficiencies and effective reporting structure Currently santa rosa water pays for 100 of the labor and expenditures for water billing So we anticipate that this move will only streamline The budget process and provide santa rosa water with additional oversight on the water billing budget Deputy director zanino who is previously a division manager for this team helped facilitate this move and will continue to use her knowledge of the work They do and the systems they use daily to ensure a smooth transition Water billing will continue to operate in the same location But deputy director zanino will now be there will be the head of this division And the two managers currently assigned to the division will report directly to her We look forward to the new opportunities that this will help The new opportunities that will help us continue to provide excellent customer service And we're very excited to welcome the water billing team to santa rosa water I also wanted to give a status update on the water now alliance grant funded project Which was awarded to us last year The water now alliance is a non-profit back to network of local water leaders advancing sustainable affordable Equitable and climate resilient water strategies in their communities If you recall the water now alliance awarded santa rosa water a technical assistance grant to research and develop a report On the saturation and frequency of water use efficiency programs in santa rosa Primarily focused on our spanish speaking community members Water now has concluded their outreach effort with strategic community partners And other water utilities and just finished a water customer survey about participation and water use efficiency programs The survey received over 130 responses to the spanish only language version And over 700 responses to the english version The final report by water now will be completed in early 2022 With a follow-up presentation to the bpu by march of 2022 It is hoped that the results will better inform our water use efficiency programs outreach mechanism and program development in the future Thank you Thank you. Any questions for the deputy director? If not, we'll take public comments on item 13 If you wish to make a comment via zoom, please please raise your hand if you're down in via telephone Please dial star nine to raise your hand Secretary atha. We have no public comments. Thank you That concludes the agenda for today before we adjourn. I want to wish all of you And our staff members our board members our ratepayers and your families all a merry christmas and a happy new year I hope that you all have an enjoyable holiday season with filled with lots of rain And we look forward to seeing all of you in 2022. So we are now adjourned Thank you, mr. Chairman