 afternoon I'd like to call the meeting of the Board of Public Utilities for the City of Santa Rosa to order. We may have a roll call please. Board member Wright, board member Sierra, board member Grebel, board member Barthelot, board member Bannonfort, Vice Chair Arnone, and Chair Galvin. Let the record reflect that all board members are present with the exception of board members Bannonfort, Sierra, and Wright. Thank you. Any statements of abstention by board members? We have no study session. Item 4.1 is the approval of the minutes from March 21st, 2024. So we'll take public comment on the minutes approval. If you'd like to make a comment please move to the podium. No one rise. The minutes will be approved and entered. We'll move now to item 5.1, our first staff briefing. Director Burke. Thank you, Chair Galvin and members of the Board. Our first staff briefing will be our 2024 Earth Day event in Courthouse Square, and Alicia Cuglici, our Research and Program Coordinator, will be making the presentation. Good afternoon, Chair Galvin and members of the Board. My name is Alicia Cuglici and I am the Research and Program Coordinator for Santa Rosa Waters Energy and Sustainability Division, and I am here to talk about Earth Day 2024. This year the event is on April 20th, 2024, Saturday. It's from noon to 4 p.m. at Old Courthouse Square. This is a free, family-friendly festival that brings our community together through fun activities and live performing arts and great food. So a little bit about the event. This year we'll have live performances by the pomo dancers, the taiko drummers, Erica Ambrin, and the Kingdream Band. There will also be kids activities brought to you by the City of Santa Rosa Parks and Rec Department. They will have nature discovery tables, seed planting, relay races, and a lot more. They'll also have or will have at the event the free bike ballet brought to you by the Sonoma County Bike Coalition. We'll have our mobile hydration station, which is the hydration station that carries 200 gallons of fresh tap water at the event for event goers, and we'll have over 60 vendors including Stormwater and Creaks, the Louis team, and a lot more. There will also be an irrigation controller workshop at 1 p.m. and it'll be for two hours, but that requires registration, which you can register at srcity.org-slash-earthday. Classroom Safari will also return this year and they'll bring their sloth and hedgehogs and all their fun animals and educate the public about wild animals around environmental education. We will also have free public transit on Santa Rosa City bus, Sonoma County transit, and Petaluma transit on April 20th, so feel free to take transit on the day of the event. And this year, we are implementing Sparkle Reusables. So this is a reusable foodware company that the food trucks at the event have agreed to, and they will provide the reusable foodware for plates, cups, utensils for the food truck, as well as the beer and wine tent. And this will eliminate the need for single-use plastic and it also complies with the zero-waste foodware ordinance. So how this works for event-goers is they will go up to the food truck, they'll pay for their food, and for each plate of food, there'll be additional $2 refundable deposit. So just the plates and just the cups will have a deposit, a refundable deposit, and they'll eat their food. Hopefully it'll be delicious. And then once they're done with their food, they'll go to the Sparkle Reusables tent, where they will get their $2 back. So this will be really no extra cost for the event-goer, and it eliminates waste completely. So this will be a fun little thing to try out at Earth Day. I figured it would be a good thing to try for the first time. And there have been other cities like the City of Mountain View and Cupertino that have also done this in the past. So we've adopted this as well for this year. And that's all I have for you today. And if you'd like to volunteer or have any questions or additional information, you can visit the website or I'm here and open for questions as well. Thanks. Great. Thank you for the presentation. Any members of the board have questions or comments? I wish I could be there. Unfortunately, I'll be on an airplane heading to New York. Oh, man. I've enjoyed it in past years, and it sounds like it's even going to be better this year. So much good luck to you. Thanks. Okay. We'll now take public comments on Item 5.1. If you wish to make a comment, please move to the podium. Seeing no one, that'll take care of this item. Thank you again. Thank you. Item 5.2 is our Water and Recycled Water Supply Update. Director Burke. Thank you, Chair Galvin and members of the board. As mentioned, we have our Water and Recycled Water Supply Update, and making the presentation will be Peter Martin, Deputy Director of Water Resources, and Mike Prins, Deputy Director of Regional Water Reuse Operations. All right. Good afternoon, Chair Galvin, members of the board, Peter Martin, Deputy Director of Water Resources, with the Water Supply Portion Update of this presentation. No surprise here. Reservoirs remain full, and nothing has changed much, so I won't spend too much time on the slides today. But just noting again that the storage in Lake Pillsbury is at about 58,000 acre feet. If you see, it is lower as a result of the conditions placed on them on the operations of their reservoir, not allowing them to operate the slide gates, to store additional water over the spring. They will follow similarly likely that trend line that you see from last year, given that the conditions are very similar to last year. There's a couple green lines there, but I'm speaking specifically of the 2023 line as well. They'll be operating it very much the same as they did last year. Lake Mendocino is at about 97,500 acre feet. As you can see, they're operating just under the forecast informed reservoir operations trend line, the upper dotted line there. Under their water rights and the conditions placed on that reservoir, storage volume allowable will continue to rise through May 15th, so they're continuing to be allowed to start storing more water at this time of year. Do you want to note too that for both reservoirs they did make quite a bit of releases to bring storage back down around mid-March as a result of the storms, but also just keeping it under that maximum storage amount as well. In terms of Lake Sonoma storage, Sonoma water is again just continuing to operate that reservoir just under their allowable encroachment into the fluck of storage pole under their forecast informed reservoir operations. As of today, storage is about 266,000 acre feet, and they're just keeping that storage as steady as possible, keeping it under that threshold of the maximum allowable storage. I did want to take this time, given that it's been a while since we've provided any updates on the activities of Santa Rosa Plain Groundwater Sustainability Agency. First, I wanted to orient you again on just some of the basic metrics of that basin, and then I'll provide some updates through their annual update that they've just submitted to the state as well, as well as some other key updates and highlights of that update as well. Just notably, the Santa Rosa Plain Groundwater Sustainability Agency oversees the Santa Rosa Plain Subbasin in Sonoma County. It is equivalent to about 80,000 acres or 125 square miles. The supplies in this basin are about 35% groundwater, with 45% being imported surface water from the Russian River, through obviously, it's just like many others. Santa Rosa is a contractor, just normal water, so that's where that water comes from. And then there's about 20% of the supply that comes from recycled water. The groundwater uses in the basin are split pretty much 50% on rural domestics. There's quite a few rural domestic wells in this basin. 32% of the use is agriculture and 18% municipal. And just how we got here, there was a groundwater sustainability plan that was adopted in 2022. This agency is now primarily focused on implementing that plan. That plan requires that the basin achieve sustainability over a 20-year time frame. They received $5.6 million last year, which is very exciting. That grant funding came directly from the state, and it is specific to funding the activities for the implementation of that plan. Their budget, I made a mistake here, I just want to point that out. The budget, this was an old figure before the 2022 rate study. The budget is about $820,000 annually. And there is a fee that was adopted as well in 2022. And that is an extraction fee of $40 per acre foot. As I mentioned before, by law, the Groundwater Sustainability Agency must submit an annual update to the Department of Water Resources by April 1st. And specifically, they have to report on the basin's conditions and the status of the sustainability indicators, which is one of the four key parts of the Groundwater Sustainability Plan. And within that plan, they chose a variety of sustainability indicators for specific sustainability measures that were required to be in these plans. And they have to track how those indicators are doing and report that back to the state. Those indicators obviously are the litmus test for how the basin is doing and reporting out on its achieving that goal of ultimate sustainability over that 20-year timeframe. So the water year that they'll be reporting out on is the 2023 water year, which encompasses October 1st of 2022 through September 30th of 2023. It was the first rainy year or above average rainfall year following our drought. So it's, I guess, some encouraging data that you'll see throughout the graphics in the next few slides in that the basin is starting to recover after several years of drought. Last year, there was 45.2 inches of rain, which is compared to the average of 33 inches of rain in the basin. If you look at this graphic here, it is very busy. But I do want to point out that the blue lines are very wet year. It was classified based upon the rolling average as a very wet year. And you can see those yellow lines were dry or very dry the last few years. So it all gives some updates on how the basin is doing. So groundwater levels across the board increased as part of the indicators for the health of the basin. The classification of the basin is split out into two systems. There's a shallow aquifer system, which is that being less than 150 feet below ground. And then below that is the deep aquifer system. They saw increases of up in their variety of monitoring wells throughout the basin of up to five feet. As you can see, the colors aren't great on this graphic, but those primarily occurred around the basin boundaries, especially in the lower portion of the basin. So that would be those areas in blue as well. And then in the deep aquifer system, they saw some large increases as well in terms of the general depth of the groundwater. Some of those primarily occurred around the areas of Runner Park and Katadi, as well as the Laguna de Santa Rosa. Those are noted, obviously, by the darker blue colors in that figure on the right. Throughout the system, the basin has 113 monitoring wells. Some of those occurring just outside the boundary of the basin as well. And those are combined 113 in both the shallow and deep aquifer. The good news is this year, none of the representative monitoring wells fell below the minimum thresholds for requiring that the basin start to monitor and potentially take action. It was, there's an example here of one of the monitoring wells that had approached that warning level in 2022 coming out of the drought, but it has since recovered. So some good news there. One of the metrics that are also modeled and reviewed every year is the groundwater storage changes. On the left is the shallow aquifer, and on the right is the deep aquifer. You can see there's a lot more variability in the shallow aquifer, but overall the increase in storage was modeled to be more than almost 12,000 acre feet total between the two, which really offset substantial decline in overall modeled storage for the basin over the last three years. So 55% of that decline has been made up just in this last water year. So no minimum thresholds were exceeded for the overall storage in the basin, which is good news and continuing to see that rebound. I do want to note that if you can look at the figure on the right, the trend has just continued to increase. If you were a straw straight trend line going forward from the 2000s, and you may recognize that timeline, a lot of that is coinciding with Runner Park becoming a contractor and taking surface water as well. So that resulted in less groundwater being extracted and maybe tipping the balance of the basin as well. There are a few other indicators in that report. That being the depletion of interconnected surface waters. These are groundwater areas that are under the influence directly of surface water. Through those metrics, there were no exceedances of minimum thresholds, but it was noted years and years prior and other areas that the data is very limited. So the basin is primarily focused in these coming years in finding ways to address the data gaps and really do a better job of measuring those interconnected surface water areas in the basin. There were no exceedances of minimum thresholds for degradation of water quality from the activities of the groundwater sustainability agency. Those primarily are in the area of salinity, nitrates, and arsenic. So they measure those as well. And then land subsidence is not a known issue in this basin, but they do use satellite radar to monitor the possibility of subsidence throughout the basin and they didn't find any measurable differences in subsidence or areas of concern in the last water year. I did want to point out that the last rate and fee study for the basin was conducted in 2022. The GSA board is gearing up at this point and is scheduled to make a recommendation in the coming months on an update to that rate and fee, including concluding their study that they're beginning right now. Through that study, they will provide updated budget and revenue requirements for the administration of this agency as well as updated groundwater use estimates. The calculation, as you can see, is somewhat simple. It's the revenue divided by the amount of acre feet pumped as reported through their groundwater user data interface, and that results in a rate per acre foot of extraction that's charged to groundwater users. So this shows an example of some of the figures that have been presented, both to the advisory committee, which I sit on, as well as the board. From this timeframe to now, or sorry, from 2022 to now, the budget has been about 23,000, and it was estimated that the extraction amounts for the basin were at about 21,000 acre feet. They've since gone through a substantial amount of work and outreach to customers, including that groundwater user interface that allows groundwater users to enter the amount of water that they're using, and what they've found is that there's actually less extraction going on, and this exceeded the amount that they had anticipated as a buffer for the amount of extractions that were going to occur. So that has resulted, as you can see, in a shortfall and the revenues that they were anticipating to collect. The budget did not change. So the reality is that it's more in line with what's reported so far, which is about 18,600 acre feet. They are also looking at the increased costs. As you know, inflationary issues have been occurring everywhere. They are seeing a rise in increase in costs for just general services to administer the basin, so it's estimated that the budget should actually be closer to 150,000. So right now, they are looking at a proposed increase of nearly 15% to almost a $46 per acre foot charge. However, there is more discussion to be had on that. They have asked the board to create an ad hoc to take a look at costs as well as any other measures that can be done. We also will take a look at this at the advisory committee level too as well. So it's anticipated that a presentation will occur in May, and they need to, if they are going to change the fee, make a recommendation probably no later than June or July because it does need to make it to the county so that it can be placed on the tax rolls. That's going to conclude my portion of the presentation. I'll hand it over to Mike, and then answer any questions you may have on my prison. Thanks, Peter. Good afternoon, Chair Galvin, members of the board. Mike Prince, Deputy Director, Regional Water Reuse Operations. This is the current version of the storage curve, which you all have seen many times before, I believe. The current year is represented, and that is the water year starting October on the left and going to the end of September on the right. The current year is represented by the red trend. Storage levels have increased slightly since this presentation was put together. We're right around 1.1 billion gallons, very similar to where our storage trend was last year at this time. One of the additional features in this chart that I wanted to point out for today's meeting is the fact that we've added the default delivery trend for our contract with Calpine, which is represented, basically, by the significant zig-zag trend with the vertical line showing January 1st, which is when the contract starts at zero gallons delivered, and the light blue line represents a default contract delivery schedule. We're now showing the trend up through, almost through April, or I should say through March, where we're slightly ahead of our obligation. Again, it is an annual contract delivery amount, so the trend is just to show where we are relative to a default delivery schedule, which is specified in the contract. If you look on the left-hand side, though, it shows the end of last year and shows how far ahead of our minimum delivery obligation to Calpine we were. We need to deliver, as I think you know, 90% of the contract volume in that constitutes compliance with the contract. We crossed that threshold actually before the beginning of November last year and wound up delivering 109%. So above a complete contract delivery of 100% as of the end of December. So far this year, if you look at the trend right around April, we're a little bit ahead of schedule. The other thing I wanted to point out is, as I mentioned in my last update, we have conducted some discharge events from the system that's represented this year and last year by the sawtooth pattern, if you will, and the trend essentially between February and April. We discharged last year and we have discharged this year as well, and I'll give you an update about that. Total volume discharged to date. I don't anticipate any more discharges, but it does depend on the weather. We've discharged just over 580 million gallons. In terms of phosphorus discharged, we had a lower than we expected phosphorus concentration in our effluent of just over 1 milligram per liter. Before discharging any recycled water this year, we had a balance of our phosphorus credits of nearly 5,400 credits, 5,351. The credits that we did consume through the discharge events are in the vicinity of 5,000, just under 5,000 credits. So we do have a positive remaining credit balance, although it is quite low. It's 369 credits, but we do have 16,000 credits in development through the Colgan Creek project, which Deputy Director Sean McNeill managed, and that was a sediment removal project, which removed phosphorus from the watershed. So those credits are in development right now. I want to give you an update about our forecast for agricultural allotments for 2024, and I'll start by talking about 2023. We had quite a year last year, and we had an allotment calculated at 1.58 billion gallons for agricultural customer base. Usage was lower than that. Actually, total aggregate usage across all our agricultural customers was only 64% of the allotted amount. This year, based on storage trends and contract compliance with our contract with CalPine, we're estimating a current allotment of 1.1 billion gallons, which is greater than what was used last year. I think one of the contributing factors to the loose usage last year was late rains, lot of rain, and high soil moisture content in the soil column, and that delayed the start of irrigation season. Temperature does have effect how hot the summer is, and humidity also plays an effect. I think we're probably looking at similar soil moisture conditions in the soil column right now, possibly even greater amounts of soil moisture based on the way the storms came through this winter, so it's possible that we'll see a late start to irrigation this coming irrigation season as well. But as of right now, we're allocating more water than was used last year, so that is what I have, and Peter and I would be happy to answer questions if you have any. Thank you to both of you. Questions from the board? Or Member Grapple? Yeah, thank you for the presentation. I want to reiterate because we don't say that enough, but we all feel it is just a gratitude for the time it takes to really prepare these detailed evidence-based presentations to us so that we're informed, even sometimes when it feels like a formality or we're going through the motions, it's like this critical deep evidence in science that undergirds kind of all of our practices, and I just want to say thank you and show gratitude because I can't imagine compiling and just again and again doing these presentations for us, not just to the minimum that's required, but really doing your due diligence and presenting whether we're in a crisis state or state of mind or not, still doing the due diligence and presenting your best work is just- I can't imagine the time that goes into that every cycle, every time you come to us with that, and I just want to honor that. I had a quick question on our groundwater measurements in terms of when we do the high, low on groundwater measurements, in our geomorphology, is it considered an uncontained aquifer and is there a geomorphological gradient or crust or something or is ours more fluid and it's just about death? Yeah, it's a great question. It's not super homogeneous, but yeah, generally there are some levels at which there is sort of what's called an aquitard and it does allow for the lower depths to be isolated from those shallow areas, so that's why you see those large fluctuations because for it to make it past that lower level and that aquitard, that water is much older, of course, and so it's been deposited there for a longer time, so that's why they've chosen that line of about 150 acre feet as the shallow versus the deep, but it isn't necessarily consistent. You will have areas where you have rock outcroppings that tend to layer on top of each other, so I wish it was that simple, sure would be easier to model it that way, but yeah. But it's not a homogenous permeability where if we're talking about both measurements and recharge timelines, it's very different, right? Yeah, it's a sort of an accepted spread across the basin to try to balance it out and it's modeled, but at a granular level it's not exact, sorry, but yeah, generally there's a separation there between the shallow and the deep. And what's the technology we use to track that and measure that? So they have a series of monitoring wells and they measure them as close as possible to spring and fall because that's when you get the fluctuations and they do everything from just running a sort of a dipstick of measuring. We also have, for our instance in our monitoring wells, we have transducers that just can measure pressure, so they plug in, take a download from laptop or something out in the field. So there's a variety of ways, but the idea is to try to create some consistency in the timing of when you take those measurements. The basin is right now, interestingly, through some of the RCDs and some others doing a voluntary well monitoring program, so they're doing a lot of outreach to folks that have wells. The preference is to have a well that isn't being used, one that's- Right. Right, yeah, yeah, it's because then it's not being drawn down because of other factors if it's being utilized, but there are some wells that are just regular domestic wells that people use for monitoring that, but, yeah, to create that consistency, there's a whole network of folks that are willing to volunteer and monitor their wells, which is kind of exciting, and it gets people engaged to and understanding, you know, science, ownership of the basin too and the management and their data point is there as well. Thank you. Other board member questions or comments? All right, we'll now take public comment on item 5.2. If you wish to make a comment, please move to the podium. No one. Thank you, gentlemen, for the presentation. We have no consent items. We have a couple of three report items. We'll start with item 7.1. Director Burke. Thank you, Chair Galvin and members of the board. Our first item is a change in scope, change order, and contingency increase for Laguna treatment plant chillers and climate control upgrades at administration and annex building contract number C02105 and Tracy Dwayness supervising engineer with our capital projects team will be making the presentation. Good afternoon, Chair Galvin, members of the board. My name is Tracy Dwayness, supervising engineer with capital projects engineering. Thank you for your attention. Today I'll bring forth the report item change in scope, change order, and contingency increase for the Laguna treatment plant chillers and climate control upgrades at administration and annex building contract C02105. So today I'll briefly provide a background and analysis that's surrounding the item and we'll wrap it up with the department's recommendation. So the project's intent more or less was to replace an antiquated climate control system that was serving the annex and administration building. Those buildings are within the confines of the treatment plant. Pursuant to a condition assessment that recognized and determined that the chiller system that was serving both these buildings had reached its effective life and made recommendations for a full replacement. So the project involved the replacement of a 1.15 ton chiller that served primarily the annex building, two 50 ton chillers that served primarily the administration building, two boilers that were within the administration building, as well as programmable logic controllers that were within the confines of the building as well. So in summary, the PLCs think of it, they're the heart, the engine that provides the abilities for the automation for these equipment. The boilers provide means to heat air that circulates to the HVAC and the chillers provide means to cool the air that circulated through the HVAC system. So staff has brought before on multiple items related to this project, stating back to August 19th, 2019, starting with the sole source specification for the Seidman technology equipment specific to the PLC that is central to the automation. Then in October of 2019, we brought forth the construction contract in addition to a 15% contingency for a total amount of $1,004,198 to the lowest bidder matrix of Nevada. Well, then we issued a notice proceed in November of 2019. And then at the request of the contractor, we brought forth subcontractor addition for Wunderlach-Malloch specific to the PLC programming component of the project. And then in March of 2021, we brought the first contingency request of 15% in the value of $130,982, owing to primarily lacking deficiencies in the contract, lacking information, unknown circumstances that evolved during the course of construction primarily related to the PLC. And then again, in November of 2022, we brought the second contingency increase of 5% for about a value of $43,660, again related to additional PLC programming that was not otherwise anticipated during that first March 2021 action. Additional design deficiencies and unforeseen conditions were brought upon during the construction. So in parallel with those actions in the summer 2020, the plant requested an expedited repair of the lab chiller, the lab chiller's climate control. That is independent of the administration building. The lab was built in the mid-2000s. It is an expansion to the administration building. The climate control is separate. It's a standalone system that's independent of the admin building. It is a state credit facility that analyzes water, wastewater, industrial waste to ensure compliance with applicable federal, state, and local environmental regulations. It is deemed a critical facility. And so leading up to the summer of 2020, the lab was experiencing a reduction in efficiency to the order of 50% in terms of its ability to cool, ventilate, and heat the facility. So with that, and also under high heat conditions, it provided the ability for fluctuations in ambient temperatures to pose a risk to the lab in being non-compliant with mandated state permits and regulatory protocols. So for those reasons, engineering expedited a repair of that system under the guise of a minor contract titled CO2344 titled Laguna Treatment Plant Expansion Chiller Replacement. We got that approved via the city manager under the guise of a competitively waving bidding due to the expeditious nature. That was awarded to Peterson, Mechanical Audit Novato. The project in essence proposed and replaced its chillers with a 60 ton chiller. We also replaced five horsepower motor heaters and ancillary piping to rehab the existing deficiencies that were experienced in the lab. Given the expeditious nature of that work, there were no other additional improvements that we were proposing at that time that otherwise would require longer design, longer contract development, or in essence a longer procurement of material that would otherwise prevent the delivery. So the consideration to system automation was not considered at that time. So in September of 2022, we completed that project. That system is operating. So we're running back to the existing project. It is 99% complete. It can be completed under the authorized amounts. We are nearing completion. In review of the funding for the project, the total contract amount is $1,178,841. The authorized contingency is a little over $305,000. Total change order spent today is a little under $301,000. The remaining contingency balance is approximately $4,700. A further audit of what has been spent, 84% has been spent approximately on design deficiencies or modifications where the remaining 16% spent on unforeseen conditions. Another optic would find that 66% has been spent on climate control related work with the remaining 34% spent on other work. So currently, the project is in the final automation integration of the project. As I stated, it's 99% complete. It can be complete now. During the integration and as it was evolving, the plant had requested that the automation serving the lab to be upgraded as well. So the lab, although we repaired the actual mechanical equipment, it is still seeing inefficiencies with its ability to maintain steady temperatures that one would need to have within the lab. So we've requested a cost proposal for the current contractor to provide system automation upgrades. We requested a cost proposal. But to the extent that this work is outside the physical limits, also just the project limits and the intent of the scope, it's deemed as a change of scope change order. So in review of council policy, 107, one would find that a change in scope change order is a change order to a public works contract, which materially changes the character of work prescribed in the contract plans and specifications. And further, a change order for a change in scope shall be returned to the original award authority for approval. In this case, it's the board. So we have since received the proposal from the contractor. It's clarified as change order 14. It's approximately $51,992. The proposed work is anticipated to be complete by the summer. They have held those rates. There will be a rate adjustment post July 1st. So they're intending to meet that date. So given the opportunity to interlate these two systems mainly at a skater level, there's an opportunity to provide efficiencies for both systems. Given the sum contractors availability, given the overall need and given the assumed savings relative to future cost inflation, the department sees this in bringing this work under this contract in the city's best interest. So staff is requesting a $90,000 increase in contingency. As stated earlier, there's approximately $4,700 remaining. The current proposal for said climate upgrades is approximately $52,000. Plant has also requested a minor repair to an HVAC piping that's ancillary to the system that values little under $12,000, which would mean that the remaining $26,000 would go to the contingency balance. And the new revised balance available for end-perceeding condition would be $30,871. So with that, it is recommended by the Transportation and Public Works Department and the City and Santa Rosa Water that the Board of Public Utilities by motion approve a change in scope change order pursuant to Council Policy 100-07 and a contingent increase of $90,000 for construction contract CO-2105 Laguna Treatment Plant Chillers and Climate Control Upgrades at Administration and Annex Building for a total contract amount of $1,268,084. And with that, I would love to have any questions. Thank you, Mr. Dwaynes. I'll open it up for questions from the Board. There are no questions. Go ahead, Vice Chair and Oni. Thank you. My question is, is there an estimated timeline for the completion of the newly authorized or being newly funded work? Yes, summer of this year. Complete by summer of this year. Contractor provider proposal with rates in those rates would be, in effect, go up post-July. So we're intending and they are intending to complete that work. Okay, and I guess my second question was, if we were 99% done and now we're adding this additional work, I guess, how do we calculate the need for a $30,871 contingency balance? Well, great question. We have seen that the type of work, the PLC component of the work, is expensive. The value of anything that we've dealt with PLC work has been, the rates have been high. The remaining balance, the existing balance in addition to the $26,000 would bringing up to the $30,000 value. And we didn't want to anticipate coming back, more or less. Is it based on a percentage of the work? The $30,000 remaining? No, the $90,000 request could have been coming in a percentage typically. Last time we came forward, it was a 5%. If we brought this forward, it would have been somewhere between 5 and 10. So we didn't really play with the percentage gain. We just put a number on it that we felt comfortable with moving forward and we don't really anticipate at this point. Neither does the contractor that those funds will be utilized. Yeah. Other questions? All right. If not, I'll ask for a motion. Move to approve the change order contingency. I'll second. A motion by Board Member Grable, seconded by Board Member Barthalo. This time, we'll open it up for public comment on item 7.1. If you wish to make a comment, please move to the podium. Seeing no one, may we have a roll call vote, please? Board Member Grable? Aye. Board Member Barthalo? Aye. Vice Chair Anoni? Aye. Chair Galvan? Aye. And that passes with four affirmative votes with board members Baden-Fort, Sierra, and Wright-Apsin. Great. Thank you again, Mr. Dwaynis. Let's hope that you don't have to use that contingency and we'll look forward to hearing about the completion of it during the summer. We'll do. Thank you for your time. Thank you. We'll now move to item 7.2. Director Burke? Thank you, Chair Galvan and members of the board. Our next item is approval of professional services agreement, engineering design, Laguna treatment plant, electrical infrastructure improvements project, and making the presentation will be Craig Dwyer, our associate civil engineer with the capital projects team. Good afternoon, Chair Galvan, members of the board, Director Burke. I'm Greg Dwyer from capital projects engineering and project engineer for the Laguna treatment plant electrical infrastructure improvement project. I'm here today to bring the department's recommendation to award a professional services agreement for engineering design services to Hazen and Sawyer. Much of the electrical infrastructure at the Laguna treatment plant is over 30 years old and no longer produced with the replacement parts no longer produced or very difficult to procure. Our maintenance staff has been doing their best to keep it going, but it's come to a point now where it needs to be replaced. Some of the components can't even be inspected for routine inspection because there's concerns they won't be able to get them back in. As you can see here from this graphic, the purpose was kind of show you it's a very large project. It's all over the plant. You can see in the upper right hand corner there about three o'clock there's a substation right there. There's two substation transformers that carry the plant load across overhead lines which is that aqua blue line at the very top of the graphic to the north. Up and around down to switch gear M2 to switch gear M1 then to double-ended load centers that can be turned on and off and depending on maintenance needs or if there's any failures that happen. There's also a additional power supplied by the cogeneration facility, the micro grid batteries, backup generators and so forth and all the loads can be made operational and re-energized by disconnecting the filled power source and closing the tight circuit breaker at the load centers. To the right where at three o'clock where it's the three is this is new switch gear M3. That's a new switch gear that's going to be added that's spaced farther apart from switch gear M1 and M2. It provides additional redundancy, additional options to work on the plant if there is a failure or they need to do routine maintenance. There's ducting throughout the plant you can see the aqua blue represents the new ducting it'll be going over to that new switch gear which is and then I'll show you a picture of that and I'll show you what the load centers and so forth look like on the upcoming slides. So here is a graphic that came from the Laguna treatment plant power master plan report that was updated in January in 2023 and as you can see from this graphic the the graphics in red the the bar items in red have the highest probability of failure and the second highest probability is the medium probability of failure in green. The components that we will be will be replacing as part of this project are all in mostly in the red some in the green you can see you know that all these load centers represented by LC the east load center north load center south load center etc the switch gear M1 M2 they're all in in very poor shape. So we we just looked at that graphic of the dual overhead lines going across part of this project is to underground those lines and and and because we're undergrounding the lines it's in California tiger salamander habitat so there's an initial study mitigated negative deck needs to be done there's salamander fencing that needs to go into place for at least one or sometimes two rainy seasons where it allows the salamanders to escape during wet weather events to reduce to mitigate against incidental takes and so forth it's a requirement from the permit agency it's something that we're working on in the timeline which will go over in a minute but the environmental work will take place from the beginning in conjunction with the design because it is a critical path item so you're probably wondering what does a load center look like I wasn't sure until I got this project so went out they're pretty big they're throughout the project this is a picture of the west load center LC 10 here's another picture where the doors open so you can see the the components in there this is another one of LC 20 another one LC 30 this one's on metal lane it's called LC 40 they're big vaults full of electrical equipment another one louse south load center LC 50 this was the switch gear that I just alluded to it's a big building there that that's the one that distributes the power to the that one goes to the double ended load centers see you probably hear a lot of presentations on the board about stuff that we've ran into underground we weren't expecting and a way to minimize any conflicts with design is a really comprehensive pot holding plan so that's what we plan to do here unfortunately at the treatment plan there's not a lot of record drawings what's in the ground so if we were to move forward with the design without doing the level of detail that's needed to to to carry out a comprehensive pot holding operation and plan get it surveyed they're going to put this data into a 3d model so when we route our ducting we don't run into conflicts or at least give us the best chance to avoid the conflicts as you know the potholes only good as the spot where you're pot holding but it'll give us it'll put us in the right the best chance for success part part of the the request for proposal process we we ask for additional information that could be beneficial for the project to the city something we didn't think about and it gives them an opportunity to show how much they've thought about the project and to demonstrate their level of understanding and so forth so part of the hazen and soyer proposal included these additional studies one is to to look at the standby power for the existing system and confirm that the in the in the co-generation system and the new equipment that's going in to make sure that it's it's going to be sufficient to power the plant in case any of that equipment fails another one is to look at maintenance levels in the in the plant to anticipate with all this new equipment what kind of staffing improvements would be needed to properly maintain this project for a long useful life so here's the schedule as you can see if if if the board moves forward to approve the professional services agreement we're meeting again to start on the design and the environmental they're both starting right there April 2024 now the electrical equipment has what we're seeing and on projects now and I've talked to many industry experts these long lead items to procure the equipment it's taking you know five to seven hundred days for basic electrical cabinets three years for transformers there's limited suppliers there's there's supply chain issues and so forth and i'm i'm i'm seeing that on other projects that i have and and also hearing from my co-workers on their projects so it's and also that because of that there's price increases so we're going to look at costs in a minute but we're seeing 15 to 20 percent increases annually on electrical equipment so what we're going to do is get get the the plan at this point is to take the design to a level 75 percent where we can procure the equipment and advertise it for that so that we can get equipment that's of the same make and manufacturer that always designed to work together that meets the spec so we're not in a situation where we we award a contract to a contractor and then we don't start work for a year or two or three so the procurement is going to take time so as you can see there the the the the construction is going to stop it's going to start in 2026 but the procurement goes on until 2028 so the plan is to start the construction and stage it in a way where these long lead items like the transformers go and last towards the end of the project so that way we can get started on it before the costs continue to increase and before you know any potential failure that might occur to kind of prevent that mitigate against that so I broke down the proposal for you guys so you can see you know where where the the numbers are coming from so you know 1.57 million in the design project management that has to do with uh there's several ongoing projects at the plant that this project needs to be designed to in such a way that we can work together and not shut things off when they need to be shut you know when they don't need to be shut off and so forth um there's the environmental which we talked about which which relates to the initial study mitigated neg deck california tiger salamander rare plant surveys all that um the procurement there's numerous uh submittals that need to be reviewed when they come in for conformance talking several hundred pages at a time per per submittal um and then the additional studies was 65 000 we we put a 10 contingency in um we felt like that was a good amount enough because the value of the design contract was so high that gave us 230 000 to work with if we needed it to uh continue on with the design or if we run in any issues during the environmental process it requires further studies or work so here's some metrics uh do those numbers make sense um so when you look at design as a percent of total construction costs it's in line with what where it should be and the project management is also as well 10 percent it's in there it's actually on the lower end um if you notice there 24 million dollars is 2026 construction costs so if it if it goes on uh further than that it we can expect those numbers to increase based on what we've seen hopefully not hopefully it it stays the same but um that just hasn't been happening so we decided to go forward with a professional service agreement process so we could get the most the the largest amount of potential uh proposals so it also includes the npsa list but it goes out to everybody on planet bids um they they wants to to uh work on these types of projects it's a competitive project uh process so we we solicited an rfp in september of both of 2023 um it originally had engineering services during construction in it we've since taken that off um until we have a solid um a funding plan in place we thought it was a little it was a little too early but we knew that we needed to get move forward with this this design due to the state of the electrical equipment and so we decided to just focus on that and get the design going and then um meanwhile um kind of work out the funding strategies um now it went to 552 vendors and let's see they were notified and we know that 37 firms downloaded the plans and out of that we advertised it for seven weeks which is twice as long as we normally do for three and a half weeks because it's a big project and we want to we want to allow plenty of time for people uh for firms to prepare their proposals for us um in the end we received two proposals the key selection criteria we wanted to make sure they demonstrated that they had a strong understanding of the project um qualified staff detailed work plan uh very and uh references we had a pretty diverse review panel um so there was two associate engineers the deputy director c-tech three and we also wanted to get the the plant staff that's that's uh working on this equipment and maintaining it to review the proposals since it's it's kind of their baby um so to speak there's a sense of ownership so we got a supervising electrical technician and the wastewater maintenance superintendent um Hazen and Sawyer was voted taught by all review panel staff um it met all the requirements of the rfp it had a demonstrated understanding of the project and very strong qualifications and work experience the contract cost had a not to exceed fee of 2.552 million which is consistent with what we would estimate that to be the recommendation it is recommended by the transportation and public works department in santa rosa water that the board of public utilities board by motion approve a professional services agreement with hazen and Sawyer to provide engineering design for the laguna treatment plant electrical infrastructure improvement project for a total authorized amount of 2 million five hundred fifty two thousand eight hundred forty seven dollars and zero cents so i'm here to answer any questions that you may have thank you mr. Dwyer i'll open up for board member questions board member bartholome thank you chair galvin thank you for the presentation sounds like a very interesting large ball of yarn um i am curious what is the age of the building would you remind us of of the age of the building that the system is going to be redone on we do have staff here uh deputy director prince sorry remember bartholome i'm not sure if we know the age of the building but but do we know like 30 years old 40 the treatment plant is over 50 years old okay various components have been built along the way okay so there really isn't any single building um that you can point to um there's different generations of equipment some of it i i actually don't know the exact age but it's beyond its useful life um we are able to keep a lot of the equipment operating because we have some extremely talented electricians one of which is retiring soon which is a separate discussion but anyway um so there's a range of ages of equipment but we're talking about uh some of the oldest equipment at the plant but there are multiple generations but all the contemplated equipment for replacement is is at the end of or beyond the end of its useful life so it does vary um i would say some of the equipment is over over probably 40 years old in some cases okay thank you the the reason that i ask is and this is going to kind of reach back into the previous um agenda item as well as around um design design deficiencies and um i know that in the last agenda item around the uh programmable logic controller project 86 percent of the contingency was spent on design deficiencies and i'm just wondering if part of that is because you know it's an older building um the you know the equipment is so old you know you you think you have one thing and then you get into it and it turns out that the design just doesn't work i mean i'm just kind of curious around what happens with design deficiencies because it seems like 86 percent is a lot for that yeah i can't necessarily speak to that that particular scenario but i will say that uh no design is perfect um and in fact if one attempts to perfect a design you you may be going beyond what's realistic so that's why we have contingency and things are discovered during construction that you don't necessarily have the ability to see uh during design and so that's why there's often a contingency almost routinely a contingency on construction contracts as well um the quality of the design does make a difference and that's why it's very critical that you bring um you know the most cost effective but also highest calibred uh consultants that you can um to do uh projects i would say this is particularly sensitive um Hayes and Sawyer has very strong uh electrical engineering capacity and in house talent um again and they also have working relationships with some staff out of the plant so they've learned a lot about the plant through various generations of projects as well so but i will say just to reiterate uh while i can't speak to the project you're talking about right there um uh no design is perfect um and and quite often it isn't cost effective to attempt to perfect a design because you'll find things during construction that uh you couldn't see during design right and um where are Hayes and then Sawyer where is where are they from are they i think they're a national firm they have offices in san francisco okay as well okay thank you sure the board member questions board member grable yeah thank you um massive massive undertaking um i just had a question about uh the budget mechanics i guess is this is this something that we use reserves for or is this budgeted and sort of spread out over um a period of um years like we do with for instance the the geysers and others where we have you know every year it's included in the annual budget of a certain amount to either replenish the original reserve amount or what are the mechanics there so right now the funding strategy is to work within the existing existing budget that we have so the project has plenty of funds for this for the design and we anticipate there'll be funding in place for a procurement on the next fiscal year um and then beyond that for the construction we're still um working out that detail that's more beyond the design phase i mean for the for the whole yeah estimated 24 million is that the it's 24 million construction contract that includes eight million for procurement um so it'd be a 16 million dollar construction contract plus the eight million procurement brings it to 24 million okay and that includes the design or no does not include that okay so that's what i was confused about okay um and then does this design contract include or not include any environmental consultants for the cts issues it includes the environmental it also includes the actual uh california tiger salamander fencing as well as part of the installation and as well okay um is that so then that's something that as the principal they'll contract out or do they do that in-house they said they'll say subcontracted that out okay okay well best of luck other board member questions or comments vice chair anoni i'm assuming this is not being done on a design bill basis and my question is is there something about the nature of the project that prohibits the use of a design build approach good question and this was uh specifically addressed in the ltp master plan upgrade they looked at the there's a section in there under cip and i talked about all the different project delivery methods and there's pros and cons to all but this level uh this the the design bit build was not considered uh the best for this particular project due to the long procurement and so forth that the best way to do it would be the way that we're proposing i guess my second question was um is the environmental work that's going to be done under this contract then complete the environmental work done required for the entire project for the entire 24 million dollar construction project correct it this this environmental work would cover the entire project thank you for your presentation at this time i'll entertain a motion take a motion um that the board of public utilities approve a professional services agreement with hazen and soyer to provide engineering design for laguna treatment plant electrical infrastructure improvement project for a total authorized amount of two million five hundred and fifty two thousand eight hundred and forty seven dollars second motion by vice chair anoni seconded by board member grable i should also just add um as was mentioned in the staff report and in the agenda this matter did come before the contract review subcommittee and it was unanimously uh recommended that this go forward so with that i'll open it up for public comment on item 7.2 if you wish to make a comment please move to the podium see none may we have a roll call vote please board member grable hi board member barthelow hi vice chair anoni hi chair galvin hi that passes with four affirmative votes with board members battenfort seara and right upset very good thanks again for the presentation thank you we'll now move to item 7.3 director Burke thank you chair galvin and members of the board our final report item is our fiscal year 2024 25 water local wastewater regional reuse and stormwater and creeks operating and maintenance capital improvement and debt service budget and allocation of costs recommendation to city council and nick harvey our acting deputy director of water administration will be making the presentation thank you director burke and uh good afternoon chair galvin members of the board it's a pleasure to be back before you to further discuss our fiscal year 2024 25 budget proposal and request your recommendation thereof so today we're going to once again review our our budgets go over some assumptions used in the development of our budgets touch on cip funding and then follow up with our remaining budget schedule and last but not least it's not on the slide but we'll of course be formally uh requesting your recommendation of our budget to city council so here's the basic set of assumptions used to budget our revenues for the upcoming fiscal year we're expecting water usage to increase by approximately one percent attributable to growth with wastewater use and development assumed to remain flat on july of one 2024 the final year of our currently planned rate increases takes effect for both usage and fixed rates at four percent and two percent for water and sewer respectively so here's a look at some of the general expenditure increases we're seeing with this proposed budget we've only included a two and a half percent coal assumption for the regional enterprise this year in consideration of our partner agencies the citywide approach and for our other enterprises uh is that if new labor agreements uh are adopted mid-year we'd be going back to council to request an increase in appropriations uh the cost of chemicals and electricity continue to climb and we're seeing insurance premium increases of over 20 department wide we've also put four proposed position changes in the department three of the four proposed changes have vacant positions as cost offsets um and just a touch on that so the only thing the only piece of information that's changed in this presentation from when you first looked at it and study session at the last meeting is that uh we did receive word that the city manager has tentatively approved our staffing changes uh i will simply qualify that by saying that's just the first step in the process and the changes will ultimately be adopted into the budget until they're ultimately adopted by city council and we'll go over some of the details of our water purchase and outside service increases a little later in the presentation here's a look at the overall percentage increases in expenditure budget for each of our enterprises water and regional expenditures are set to increase five point nine percent and eight and a half percent respectively um just wanted to mention that although the regional enterprise is seeing an eight and a half percent increase in on m costs overall uh santa rosa's portion of the regional enterprise our allocation is only set to increase by five percent um our sewer funds actually seeing a one point nine percent reduction in proposed on m expenditures and our storm water increase expenditures are set to increase by 20 percent with 20 percent of the overall budget being funded by the general fund and the remainder of the 80 percent being funded with storm water increase enterprise revenues so our professional services in the water fund are projected to increase 32 percent uh this is attributable to two main factors the first is that we're now paying our annual fees to the groundwater sustainability agency that uh deputy director martin spoke to in his earlier presentation uh and this is the first year that we're budgeting those costs so we're going to see that year over year spike in year one um we're also uh oh and the remainder of the professional services increase is attributable to some outside contracts we're executing to reconfigure some staff uh workspaces um we're also seeing an increase uh in our investment in vehicle replacement and maintenance to keep up with the rising costs of new replacement vehicles as well as maintenance and fuel costs and as i spoke to earlier uh water is getting especially hit hard by the increased insurance premiums at almost 50 percent this year so for the for the next fiscal year sonoma water is increased has requested rather a nine point eight eight percent increase in the wholesale water rate after figuring in the rate increase in addition to the one percent growth assumption we're projecting a total water purchase budget of 19.69 million for next year which is an increase of nearly 1.9 million dollars over the current year budget of 17.8 million dollars this proposed increase was formally recommended by this body at the march 21st meeting and by city council at its march 26th meeting and our whack representative major mayor rogers will be formally voting on the proposed increase on behalf of santa rosa on april 8th when the whack takes their vote and here's a visual breakdown of water's 43.7 million dollar proposed on m expenditure budget so the 10 percent increase in professional services and sewer fund is also attributable to office reconfigurations um as a as office space will be shared by staff who benefit both water and sewer both enterprises are sharing in those costs in addition to the anticipated pgne rate increases electricity has been slightly under budgeted historically so both factors are contributing to the increase in utilities we're uh really trying to catch up this year budgetarily the sharp decrease in it cost is attributable to how we're now paying for software licenses these costs are being budgeted in other areas of our budget rather than representing true cost decreases and wastewater is seeing a 24 increase in insurance premiums and here's the breakdown of our 18 million dollar proposed sewer on m budget so here's a look at our reserve levels as of june 30th 2023 while we continue to see strong undesignated reserves we can see that the local enterprises drove significant deficits in fiscal year 22 23 um as indicated under undesignated the amounts italicized are the amount as of june 30 2022 um so the delta between those two numbers represents the decrease in operating reserves as a result of that year's operations so while we continue to see strong undesignated reserves we can see that we've been driving significant deficits for fiscal year 2022 23 uh the two main factors uh for these decreases is that we've been intentionally budgeting slight deficits in our local enterprises to manage our undesignated reserve balances and the second is that water did make significant contributions to the city's 115 pension trust last year um and so this year we're aiming to limit further negative impacts reserves by proposing and hopefully passing a balanced budget and so just to uh demonstrate what we're talking about here so if we look at the currently adopted budget for fiscal year 23 24 we intentionally budgeted a 3.6 million deficit for 24 25 we are proposing a balanced budget with a surplus of 942 000 proposed undesignated fund balance for the local sewer enterprise we intentionally budgeted a 3.1 million deficit in the current fiscal year with a proposed 890 000 surplus uh for for next year so the rise in professional services costs for the regional enterprises associated with our biosolid section there's some uncertainty next year regarding how much land will be available for biosolid land application so as such we've increased this budget to absorb the potentially increased costs of having to dispose of a larger volume of our biosolids with uh list tech we've increased our electricity budget by just shy of 20 for potential increases in both the electrical rate and the quantity of electricity consumed it expenditures are increasing 24 percent here due to increase uh increased need to purchase software licenses for our operations and again uh regional is experiencing an almost 27 percent increase in insurance premiums for next fiscal year and here's a snapshot of our regional budget which is inclusive of all of our on m expenditures our cash funded cip debt service our miscellaneous revenues budget five and a half million dollars and finally the increase in our on m reserve um we always target our on m or operating reserves to be at 15 percent of expenditures for the year so that represents the amount by which we think we're going to need to increase that reserve so luckily we're able to fund our proposed expenditures next year with all agencies in the regional operations seeing relatively modest increases um sabasapal even seeing a small decrease for the year uh this also includes the continued one million dollar per year increase in cip investment for the current year it's 10 million so next year we're proposing an 11 million dollar cip budget so as we look at stormwater and creeks the increase in professional services here is mostly uh due to services related to stormwater and creeks is a new stormwater permit compliance program which is also responsible for the large increase in operational supplies costs like our enterprises like our other enterprises rather stormwater is also stepping up its vehicle investment to cover increasing fuel and vehicle replacement costs and here's a breakdown of stormwater and creeks proposed budget of just under four million dollars so unlike our other water enterprise funds uh our stormwater and creeks enterprises are not obligated to hold operating or catastrophic reserves and their trial balances so as such they only hold undesignated reserve balances and these are those amounts uh on the on the trial balances in each fund as of June 30th 2023 so in order to pass balanced budgets for fiscal year 2024-25 we've had to cut back our planned cip appropriations to absorb the impacts of the onm cost increases we're experiencing luckily regional reuse and stormwater and creeks are delivering their planned cip appropriations but water and sewer seeing decreases of 5.6 million and 10.6 million dollars respectively for next year so it's it's quite a chunk so here's a glance at our proposed cip budget for a water enterprise for next year uh nine and a half million dollars with the bulk of that being invested in linear assets such as water mains and services continuing our significant investments in our groundwater program and the rest going to other infrastructure and planning efforts our proposed 3.3 million dollar sewer cip for next year um most of it as you can see is going to sewer trunk work which has been an item of emphasis in recent years uh with the remainder going to sewer mains and study sewer mains and services and a small amount dedicated to study efforts a regional enterprise has an 11 million dollar proposed cip budget um all of that money is being invested in hard infrastructure for both the plant itself and the geysers pipeline and here's a look at our proposed 1.6 million dollar stormwater cip budget for next year 757 000 of this is going towards programmatic projects or on-call contracts which we often use for emergency repairs and unforeseen events 150 000 going towards the macman avenue storm drain project and the remaining 750 000 going towards the lower colgan tree restoration phase three project so here's our remaining budget schedule we'll be going before council on april 16th requesting their recommendation of the proposed regional budget for the purposes of notifying our partner agencies will be councils holding budget study sessions may 7th and 8th enterprise funds are usually among the last to be reviewed so we'll be sitting in study session on the 8th to talk about our water budgets and June 18th is hopefully when we'll have our budget adopted by city council and uh that's all i had so i wanted to pause here before i request your recommendation and i'm more than happy to field any questions if there are any very good um i know how difficult it was for staff and the budget subcommittee me to meet and to pair down this budget to balance it and that meant obviously sacrificing a lot of uh cip dollars which is difficult to swallow but a balanced budget in my opinion is much more important so i will be supporting the recommendation we'll open up for any of the board member questions or comments vice vice chair anoni my only comment is i know how much work it is to be on the budget subcommittee so i want to thank board member bartholomew for serving on that and it's a it's a it's a task that gets recognized and seldom and it means a lot so thank you for all your work on that all right i'll let you go ahead and give us the recommendation and we'll okay and with that it is recommended by san eras water the budget review subcommittee and the sub regional technical advisory committee that the board of public utilities by resolution recommend that the city council approved the fiscal year 2024-25 water fund local wastewater fund regional reuse and stormwater and creeks fund operation and maintenance capital improvement and debt service budget and the resulting cost allocations thank you we'll open it up now for uh motion um i will move to recommend that the city council approve the 2024-25 water local wastewater regional reuse and stormwater and creeks operating and maintenance capital improvement and debt service budgets and the resulting cost allocations i'll second motion by uh board member bartholomew seconded by vice chair anoni at this time we'll open it up for public comments on item 7.3 if you wish to make a comment please move to the podium seeing no one may we have a roll call vote please board member grable i board member bartholomew hi vice chair anoni hi and chair galvin hi and that resolution passes with four affirmative votes with board members baton fort seara and ray absent great thank you again mr harvey for a nice presentation next item on the agenda is public comments on non-agenda matters if you wish to make a public comment on item 8 please move to the podium see no one we have no referrals we have no written communications we do have one subcommittee report i will report that the contract review subcommittee met on april second to review a proposed professional services agreement with integrated project solutions for engineering design services for the delta pond standby generator and the guna treatment plant annex boiler replacements project the subcommittee unanimously recommended approval of the proposed agreement and it'll be coming before the full board at a future meeting are there any other subcommittee reports all right then we will take public comment on item number eight if you are excuse me on item number 11 if you wish to make a comment on item 11 please move to the podium see no one that'll take care of our subcommittee reports are there any board member reports okay and then we'll move to the director's report director Burke thank you chair galvin members of the board a couple quick items for you first i'd like to um he doesn't know i'm doing this introduce our new director of transportation and public works dan hennessey is in the audience today uh been with the city i think for two months now uh so we're very excited to have him here and uh excited that i get to introduce you all to him so welcome dan second i wanted to let the board know that we received uh some good news uh from this number in saving water partnership last month uh the u.s. bureau of reclamation water smart water and energy efficiency grants program has um given us a preliminary notice of award for a two million dollar grant uh this is a regional grant that we applied for with the other members of the partnership and will allow us to implement a variety of water use efficiency projects by all the member agencies of the partnership so we anticipate receiving one uh 45 percent of the grant funding which is a total of one point eight million dollar project um and this will help us uh institute or implement our second phase of our direct install high efficiency toilet program so we're hoping uh we will be installing 2,500 more toilet packages and that will give us an estimated 2,400 acre feet per year of water savings over the life of the toilets which is estimated to be 15 years um we should be bringing forward to the board before too long the cost share agreement um for the board's consideration so just excited that we have that grant opportunity coming forward and then last i wanted to let the board know that with the return of the lutherborough rank rose parade uh santa rosa water is going to actually be participating and having a float in the parade i don't think we've done this before so we're pretty excited about it uh the parade will take place on saturday may 18th starting at 10 a.m. in downtown santa rosa the theme is going to be tre the theme is trek through time and we have a a staff committee that's very excited and doing a great job working on this we're looking for old historic photos and showing the difference of what the water system you still look like potentially horse drawn carriages to what we have today um will also be will have a vector truck and a dump truck calling a trailer that'll be part of our float and a number other exciting things so wanted to let the board know if you are interested in attending the rose parade you'll see us there if you want to somehow participate in our float let me know and i did confirm with our city our assistant city attorney that um her government code section 54952 as long as you're attending and you're not speaking about it a majority of the board uh speaking about business majority of the board can attend so if you're interested let me know and that is my entire report and i'm happy to answer any questions you might have thank you director burk any questions for the director great look forward to seeing the plans developed with regards to the float so we'll now take public comment on item 13 if you wish to make a comment please move to the podium seeing no one that'll conclude item 13 that'll conclude our agenda for today so we are adjourned