 Okay, we will reconvene the meeting of the Board of Public Utilities Item 5.1 is the approval of the February 7th minutes, which will be taken care of Item 6.1 is our consent item I'll move the consent item second Motion by Vice Chair Arnone seconded by board member badden-fort to approve item 6.1 all in favor say aye Aye any opposed Passes unanimously with two absences. Thank you Item 7.1 is a report item on the approval of the exclusive negotiation agreement with renewable Sonoma and I believe our water use Engineer to Tanya Mokvitz is going to do the presentation Welcome need to get that microphone closer to you Yes Is it better? All right, I'll start it all over Good afternoon term and Galvin members of the board, I'm Tanya Mokvitz water use engineer with water department as Indy mentioned I'm new on this position and I'm new to this project and I'm learning a lot so The item I have in front of you today is a recommendation to approve exclusive negotiation agreement with renewable Sonoma So today's presentation will cover project background phases in terms of phases of the project terms of negotiations and guidelines for negotiations We will discuss time frames We will explain our next steps and provide staff recommendation so some of you are Have been involved with this project since inception and are familiar with it But to bring everyone on the same page, I will provide a brief overview of project background Sonoma County Waste Management Agency was formed in 1992 and Open composed facility at Sonoma County Landfill on Mitchum Road in 1993 However in 2015 it was forced to closed due to storm water runoff issues Since that time The solid organic waste have been disposed of at locations outside of Sonoma County in May 2017 The agency issued RFP soliciting proposals from parties interested in owning and operating Composed facility in Sonoma County Subsequently city of Santa Rosa issued request for proposal Soliciting Interest in leasing city properties around the treatment plant After CD received and reviewed Proposals in December of 2017 the board approved letters of intent to negotiate with four proposers Renewable Sonoma was one of them At that time the agency selected renewable Sonoma as their most responsive proposer and in January 2019 the board was briefed on cities collaboration with renewable Sonoma The next steps for staff was to develop the exclusive negotiation agreement to establish basis to negotiate project and site lease agreements in On February 4 2019 the contract review subcommittee Reviewed and supported the proposed exclusive negotiation agreement So now I will go over the project This is an overview of three phases and those phases are not set in stone If one of the phases will not go Will not work for us. We will look at other options and opportunities So the first phase Proposes to evaluate options and technologies to manage and treat by a solid which are currently treated at the Laguna treatment plant composed facility Then we will develop and build a new facility on or around treatment plant The second phase will developed and built in organic materials processing facility at Renewable Sonoma's expense at the composed at city composed facility The goal of the new facility is to produce organic compost otherwise known to us as fertilizer and The third phase potentially will develop regional biosolids facility to treat by a solace from other jurisdictions and potentially other counties Again, this is a big picture concept and it is subject to change so Moving on to the agreement. I will go over the agreement general terms But at the end of presentation assistant city attorney Molly McLean will be able to Dive into details and specifics is if needed So what is this agreement this agreement is only to negotiate in a new in a good faith it does not bind us to any terms and does not commit seated to anything Renewable Sonoma is interested in Entering a 20 to 30 year term site lease agreement The project agreement will be developed once both parties agree on Siting development and operations of the facility Per the agreement renewable Sonoma has the ability to perform due diligence investigating city sites They will be able to perform inspection and testing Pursuant to right of entries per city requirement Renewable Sonoma will be responsible for all costs associated with the inspection and investigation and for any damages caused to the city So this agreement is just set in the stage for future project There are a lot of items that will need to be negotiated as we're at the front of the project We will be performing full environmental review And on actual project and will come forward to the board for approval We will investigate in address land use entitlement permits terms of lease development and operations Faces and components of the project in interface with Laguna treatment plant Currently we are in the process of bringing Consultants on board for a sequel The legal and engineering services now I will address the project schedule Please keep in mind that this is a very ambitious time frame, but we will work hard to try to achieve it Currently negotiation period is set for 180 days from the date of the agreement execution Which would put us in front of board for approval for site lease and project approval in August of 2019 However, if we miss the deadline We can extend the negotiation Period by mutual agreement of both parties We are expecting for permits in design efforts to take 12 to 24 months And with approximately 12 months of construction we are estimated to complete the project in by the end of 2022 Again, this is a very initial estimate of time frame submitted to us by renewable Sonoma Realistically city staff expects it to take longer So our next steps would be approved Exclusive negotiation agreement with renewable Sonoma Engage board members banister Baron Ford and Watts with ad hoc committee in the process Involved and work collaboratively with sub regional partners Schedule regular meetings at frequencies that meets everybody's needs continue negotiation with renewable Sonoma and hopefully Agree on site lease and project agreement and most importantly keep BPU appraised on their project progress The city staff recommends the board by motion approve exclusive negotiation agreement with renewable Sonoma And if the board has any questions our team would be happy to address them. Thank you Thank you very much assistant city attorney McLean. Did you want to add anything before we open up for questions? Well, I think Miss Mucklitz did a very good job of setting forth the terms if there are questions about the details of the agreement I'd be happy to answer. I'll just emphasize that it's an agreement to negotiate in good faith. There are quite a few Guideline provisions in there about the potential Make-up of the project different Components I would say this is the time for the board to identify any of those that might be a significant problem otherwise the understanding is that We are going to be embarking on an extensive negotiation process to try to work through a lot of details questions and issues We am I look forward to working with our ad hoc committee in that process and with the board and I think that we're Very excited to move forward Thank you I'll also report as was mentioned in the in the presentation that this did come before the contract review subcommittee on February the fourth We reviewed the proposed agreement in detail and we're unanimous in our recommendation to the full board that the That the agreement be approved and authorized to be executed Any other board member questions or comments? Any public questions or comments? Oh board member Dowd Chairman Galvin. Thank you The one thing that I see in this exclusive negotiating agreement And I just wanted to be sure that everybody understands that the purpose of the negotiation is to find something that will work for everybody And so that's renewable Sonoma. That's the city of Santa Rosa our regional partners and Certainly our customers and so I would certainly expect a Lot of discussions to make sure that all those elements come to fruition that that's really my point Thank you for your comments. Any other board member comments or questions? Any Vice-chair Arnone, I guess my question is that I believe late in the day We received some kind of a site layout is somebody going to address Where this came from and what it depicts and where it goes from here Well, I apologize for having it sent late, but I didn't I wasn't sure that it was included in the initial upload of the Contract for review. So I wanted to make sure that it was presented to the board members in their consideration. It's a preliminary site plan of the proposed project again with the understanding that All of this is going to be a negotiation process But that is the preliminary proposal at this time And I'm sorry. I didn't notice that it is actually part of the packet is part of the presentation But the copy of the contract is in is in here. So We now have it twice. Thank you And recognizing that this is a very preliminary drawing might it appears from if I'm reading this correctly At least a portion of the facility will be on the Laguna treatment plant side of Lana Road the retail Retail building and one of the processing areas is that correct? Correct? Okay? good I Have one speaker card if there's no other board member questions or comments Debra, yes, thank you very much Give us your full name and yes, will you represent please Deborah Tavares and thank you I have to say I had a very difficult time Understanding her discussion with her accent. So maybe it was just me, but I had a really hard time understanding Having that been said I'm referring to the attachment that came with the agenda that I printed out in my office elsewhere and on one of the pages under the analysis Where it talks about? it could it would not cause new significant impacts or Substantially more severe significant impacts when compared to the impacts already identified in the EIR and I just wanted to then refer back to that assurance where I am reading under July 2016 In that printout where it says in addition because stormwater would be impounded by the proposed flood protection system in Conceptual design analysis of the stormwater So when I hear about anything that we're doing with impounding stormwater, which is the same type of impoundment that we're hearing about now with related to earthquakes and With reservoirs in the containment or entrapment of water So I just wanted to make sure that there was An inclusion in the environmental impact report that spoke about the electric the engineering aspect of the impoundment of the weight of the water Because our research team has gone back over the consequences of impoundment of water and Increasing water in areas such as the Laguna that's already impacted by quite a bit of water and Seeing if that would be certain that it wouldn't exacerbate Earthquake potential, which is what the weight of the water does do worldwide With the impoundment and entrapment of water in reservoirs That would be my comment. Thank you Thank you very much staff care to respond or comment at all I Believe what the speaker is referring to In the staff report is the environmental impact discussion That is specific to the board's action in approving the negotiation agreement and the project itself will be as Miss Mokvitz pointed out undergoing its own sequel review process, and I'm sure that there will be opportunity At that time for the board to consider any potential impacts If I can just comment I had no difficulty understanding the presentation Thank you. All right. We have a What do we need? We need a motion for approval of the Execution of the exclusive negotiation agreement. I saw move You'll second motion by board member doubt seconded by board member badden for it all in favor say aye Aye any opposed Passes unanimously with two absences. Thank you Public comments mr. Veras did you have public comments also? You checked the box for both. I'm just asking So this is public comments on non-agenda matters Yes, um, this is non-agenda. It was just mainly concerning the um Infrastructure Increases potentially on the lines that go up to the geysers And how that might impact The geysers in what way might the lack of infrastructure update Impact the geysers would that potentially reduce the daily amount of earthquakes that the geysers create every day as we Inject wastewater Treated material down those geysers. So that would just be a question about The replacement of the infrastructure to the geysers Um in looking at some reports that our research team has dug up from the world bank We're finding that um, there's a global worldwide consideration Of all infrastructure being the foundation globally and the impacts of increased weaponized weather events aka climate change And with climate change being an exacerbating factor on all foundational infrastructure worldwide There is the anticipation That everything that was built before for example the Orville dam comes to mind. They're talking about with The warming climate will have much more precipitation much less snowmelt and We'll have more flooding due to rain because the snowmelt won't contain the The amount of water that has been a usual pattern in the past And the paris climate reports talk about the likelihood of a seven Degree increase in climate and how that will exacerbate all existing foundational infrastructure Worldwide my concern would be how are you preparing We're for this that's been stated and where are we going to get the money? To continue to increase the infrastructure Based on climate control. Thank you Thank you for your comments. I would suggest perhaps you check with one of our staff persons and They can perhaps point you in the right direction to get some answers to your question Thank you We have no referrals. We have one written communication on our rate revenue subcommittee reports As was mentioned the contract review subcommittee did meet on february 4th And made the recommendation with regards to the exclusive negotiation agreement Board member doubt The budget review subcommittee is Commencing their work And we'll be bringing Occasional updates to the full board as to things that May need to be put into our budget and taken into consideration. So it's ongoing. I think we have four meetings scheduled out in front of us Thank you. And as always thanks to the budget subcommittee because they do An awful lot of work in a relatively short period of time and their huge Support for the staff and and I I would say thank you chairman galvin, but I also look up there at the top of the Seating and and deputy directors and you know Does much much more work than any member of the budget review subcommittee does and we're we're blessed to have her Overseeing that good point. I agree Any other subcommittee reports Any board member reports directors report Thank you chairman galvin members of the board City council or city staff and legal council met with a regional board and their legal council on february 14th to discuss The alternative compliance approach to the city's no net loading for phosphorus provision Of our of our annual or excuse me of our npdes discharge permit for the laguna treatment plant The meeting focused on a plan for future compliance That could include the city creating a process to fund restoration activities In the laguna watershed in lieu of other offset projects The attorneys discussed appropriate language and strategies to meet the needs of both parties The meeting was collaborative in nature and a good sign for the future for future discussions The alternative compliance approach is following the guidelines that were developed in the phosphorus blue ribbon panel report That will be presented to the bpu in a study session on march 7th And brought back to the bpu for a for approval on march 21st I also wanted to notify the board that last week city staff received notice of a stop work order Issued by the california energy commission to train the provider of the cec grant funded microgrid project at the laguna treatment plant The stop work order interrupted installation of the second Of two selective catalytic reduction units Being installed on two of the city's engine generators at the treatment plant One of our chp engines are down due to work that needs to be completed And this adds to our desire to lift the stop work order quickly staff has been in close contact with the cec since the receipt of the notice Demonstrating our support and commitment to completing The project within the terms of the grant requirements And several of the cec's areas of concern have already been addressed and we are anticipated that we will have the stop work order rescinded very soon Also wanted to let the board know that budget entry for our o&m budgets will be completed very soon And final numbers will be ready for our first budget subcommittee meeting which will be held next week And I wanted to inform you that the cip Is cip projects are still being prioritized and will be ready for your review at the sep the second budget subcommittee review That's all I have to report today Any questions for the deputy director Please keep us updated on the lifting of that stop work order We'll do thank you Anything further All right. Well, we will wish uh continued recuperation to board member banister and hopefully he will be back with us at our next meeting and welcome again Re-welcome to board member watz and we will stand adjourned. Thank you