 Yeah, I know, because I'm weeping. Well, you're traveling light today. I wish to hear, I don't know why they do the alphabet back. Good 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. Here. Board member Grable. Here. Board member Barthelot. Here. Board member Baden-Fort. Vice Chair Arnone. Here. Chair Galvin. Here. Let the record reflect that all board members are present with the exception of board member Baden-Fort. Very good. Good afternoon, everyone. Any statements of abstention by board members? Very none. We'll move to item three, which is the oath for office of our new board member. So at this time, Director Burke. Thank you. We're very pleased to have a new member joining our board today, which is the appointment of Councilmember Alvarez and board member Yvonne Sierra. If you wouldn't mind coming up, we will have our recording secretary issue you the oath of office. Hand and repeat after me. I, Yvonne Sierra, do solemnly swear that I will support and defend the Constitution of the United States, that I will support and defend the Constitution of the United States, and the Constitution of the State of California, against all enemies of foreign and domestic, that I will bear true faith and allegiance, to the Constitution of the United States, and the Constitution of the State of California, that I take this obligation freely, without any mental reservation or purpose of evasion, without any mental purpose or mental evasion, that I will well and faithfully discharge, that I will well and faithfully discharge the duties upon which I am about to enter. The duties that I am upon to enter. Welcome to the dais, and we take this opportunity, if you'd like, to say a few words about yourself and your role here on the board. It's up to you. I don't have much prepared, but I do come from a history of being at Keysight Technologies for 22 years, and then I decided to slow down a little bit and become a property manager, which that's not slowing down. So I have a few clients, and I do that. And my next chapter in life is wanting to be on this board. I was on the board of the Community Advisory Board, and now this one, and this one, I had a training that just blew me away. Now that cup of water on my dinner table has a whole other meaning. And so it's a privilege and a pleasure to be here. And thank you very much for having me. Well, great. Well, we're welcoming you to the board. I know it's going to be a tough learning curve for you, but I understand you had a very good orientation last week with our staff, and they'll be available to you throughout your time on the board to help you get through whatever issues come up. All right, any other board member questions or comments? All right, then at this time, we'll open it up for a public comment on item 3.1. If you'd like to make a comment, please move to the podium and wait for the timer. Seeing no one, that'll take care of item 3.1. We'll now move to item 4.1, our study session, Director Burke. Thank you, Chair Galvin and members of the board, and welcome to our new board member. Our first item will be a study session, the asset management overview, and Jason Roberts, our supervising engineer with the asset management team, will be making the presentation. Thank you, Director Burke, and good afternoon, Chair Galvin and members of the board. My name is Jason Roberts. I'm a supervising engineer with the asset management division for Santa Rosa Water, and I'm pleased to give you this presentation, our asset management overview. Just a brief outline of the presentation, we'll go over the purpose of asset management. We'll discuss why we perform asset management and get into some details of how that's done, and then we'll talk about how we get from asset management to project development. So the main purpose of asset management for utility is to ensure that we can maximize the value of our assets, optimize their performance while they're in service, and minimize risks and costs associated with ownership and operation of those assets. This helps to improve transparency and clarity in decision-making, gives us the ability to describe and defend projects that we choose to move forward, and helps us prioritize our projects to maximize public benefit. So what is an asset? This comes from the Institute of Asset Management. An asset is an item thing or entity that has potential or actual value to an organization. It's left a bit vague on purpose because it really means everything that goes into the operation of utility, from the pumps and the pipes to the data and the computer systems. So anything that we use or need to operate the utility is an asset to the Santa Rosa Water. I'm gonna go over our, do a brief review of our water system assets. We've got about 630 miles of transmission and distribution mains, 24 reservoirs, 20 booster stations. In total, the estimated replacement cost of the water system is about $2.7 billion. Our current fiscal year CIP funding allocation is about $14.6 million, and we do anticipate to need an additional $194 million over the next 10 years to replace assets that are aging out. Here's a map of our water system by age. You'll notice that there's a lot of yellow on this page, but in between the 1950s and 1970s, Santa Rosa expanded quite a bit, and you can see some internal pipes and on the outskirts of the city as well, pipes that have been replaced and pipes that are still in their original state due to the expansion of the city in the late 70s and going on through the 90s. Here's a map of our water system by material. You can see a lot of red on this page that represents asbestos cement pipe having to do with a lot of the expansion of Santa Rosa in the 60s and 70s. A lot of this pipe is aging out and is a focus of our pipe replacement program. Under our sewer system assets, we have about 600 miles of trunks and collection mains in the city. 17 sewage lift stations, estimated total replacement cost of the system of about $2.3 billion. Our current CIP funding this year is about 13 and a half million, and we do anticipate a need of an additional 285 million over the next 10 years. Here's a map of our sewer system by age. You see a similar trend here based on pipe age as Santa Rosa expanded, and a similar trend as well regarding that asbestos cement pipe, which is a focus of our pipe replacement programs as well for sewer. And our regional water reuse system, multiple elements to this system consisting of the Laguna treatment plant, the Laguna laboratory, reclamation system, of course the geyser system and also our borosolage management system. We estimate the total system replacement cost to be in excess of $2.7 billion. The current CIP for this fiscal year is $10 million, and we also anticipate an additional 160 million over the next 10 years of funding needs. An overview of our regional system, of course you see the heart of the system, the Laguna treatment plant down there, the Green Star down there on Lionel Road. This shows our regional partners, cities of Sebastopol, Rona Park and Katadi. And you can see the geysers pipeline in red moving north from the treatment plant up past Windsor. Windsor is not a regional partner, but they do contribute to the geysers system. So that's why they're shown here on this map. From Windsor we're gonna go north through Healdsburg and then up the mountains through three lift stations, ultimately finishing at the terminal reservoir at the geysers. So why do we perform asset management? Well it helps us take a programmatic approach to managing our assets and moving projects forward to replace those assets. We don't wanna have any surprises with our assets when it has to deal with water delivery or sewer collection. And it really helps us make the right decision at the right time for a particular asset. We also wanna answer questions like which asset needs the most maintenance? When should we replace these troubled assets and what will our costs be in the near term? We also wanna answer longer term questions like what level of service do we expect from our utilities? Which assets are critical to sustained performance of our systems? And what are our long-term costs gonna be and really are we investing enough in our CIP program? So what is asset management? It's not a software application. It's really a commitment to comprehensive management program. Has long-term financial planning component and really focuses on the entire life cycle of an asset from planning through design and construction and rehab and replacement. And of course when you replace that cycle starts all over again. The main goal of asset management, irrespective of if it's a utility or not, but really we're trying to minimize the cost of service and risks the utility and maximize the level of service to our customers. Comprehensive program should include strategy and planning, decision making, a look at the whole life cycle of an asset, not just the planning and procurement, asset information, data collection, maintenance records, a focus on the organization toward an asset management program, and regular risk assessment and review of that data against our assets. So we'll talk about how we get from asset management to project development, how we look at the data and some of the standardized criteria for our assets, and then how we use that data to make data-driven decisions for project development, developing our CIP program budgets and also our ONM budgets. Our capital projects have been prioritized for some time. We reevaluate the program every year and we do that for water sewer and our regional system. And we identify capital projects through a number of different studies, right? So we look at the general plan, we look at master plans and engineering studies for specific asset classes. We have condition assessment programs that we use to prioritize projects. We evaluate the level of service, perform risk assessments based on all of this data, take into account regulatory requirements and also stakeholder and public input. For the general plan and master plans, we evaluate our systems based on expansion or intended use identified in the general plan. And so our water and sewer master plans will use those guiding documents to assess the current and future state of our systems and make sure that we have the necessary capacity under those general plans. When you talk about asset scoring, there's really three different pieces that come into play. The condition of the asset, things like remaining service life, information on direct observations, like maybe CCTV footage of a sewer pipe and how often an asset is needed to be maintained, how many work orders have been made against that asset. We also look at the level of service, hydraulic capacity of a water pipeline, for instance, or slopes of sewer mains that may be causing problems with backups. And then we look at the risk of failure of an asset. Is it in a high seismic activity zone or there are fire flow deficiencies? Is it next to a creek where an overflow may be problematic environmentally and publicly? And is that asset near a right of way or railroad crossing that may be problematic to replace that pipe if it fails? A little bit about a condition assessment and how it helps us prioritize projects. An asset in new condition will operate for a certain amount of time before it is no longer meeting your minimum acceptable condition or level of service that you need out of it. So along the way, you'll perform maintenance renewal activities. Those activities will improve the operation of that asset but never back to the new condition. So as you maintain this asset, it'll degrade over time and ultimately come to a point where you need to make a decision on whether or not to replace that asset. And that's really what we're trying to do with condition assessment is figure out what state the asset is in. Can it be rehabbed or doesn't need to be ultimately replaced? We also evaluate the level of service. Our assets provide a service to the city and our customers. And the level of service can be numeric or qualitative such as percent downtime of a water main or a number of incidents or breaks per year, hydraulic capacity and cost to maintain that asset. So if the cost becomes too high, even if it's delivering or it's performing as intended and meeting its level of service, in that regard, the cost may just be too prohibitive, the cost to maintain that asset. Then we look at risk assessment of our assets. There's two components to a risk assessment. There's a likelihood of failure and a consequence of failure. The likelihood component is really everything about that asset, the maintenance history, the condition, the age and material. And the consequence of failure really looks at what happens if that asset were to fail. Are there financial implications? Are there social implications and also environmental implications? Those two things come together ultimately to produce a risk score for that asset. So you see here a risk assessment matrix over in the red and the extreme category. Those are projects, those are assets that we would immediately elevate to consider immediate replacement. The assets in the green, we wouldn't elevate those and we might just have regular maintenance activities on those. When you get into the yellow and orange, that's where we start looking at, do we need to have either increased maintenance or do we need to do some additional condition assessment at a higher frequency so that we can keep those assets from getting into the red area of the matrix. We also look at regulatory requirements that we're required to adhere to, building code and fire code, drinking water requirements, waste discharge requirements, storm water requirements and also safety. We seek stakeholder and public input, collaborate often with local water and sewer operations and our regional water reuse teams, work with finance and water administration, take into account customer calls and of course, public meeting comments. So how are projects prioritized? Well, we look at risk reduction and mitigation first and foremost. We also take into account additional benefits beyond renewal of that asset and we look at compliance needs. Is there a time sensitivity to this project? Doesn't need to be done by a certain time that before we know an asset's gonna fail. Doesn't need to be done before another project. And we also look at grant funding opportunities and timelines there as well. There's an example framework that we look at when we have two high priority projects that maybe a water project and a sewer project. We'll use this matrix to assess an overall benefit for the project. So for instance, a water project that has, we wanna avoid a critical failure and it will receive a high risk management score. If there's a secondary benefit where we're also improving capacity or customer experience that will also receive a high score. And then if there are water quality or public health or OSHA components to that project, then that project will get elevated among others aside from just individual risk of an asset failing. So how are projects initiated? Review the data of individual assets. Determine which assets need work now. We'll develop a scope and a full project package for replacing that asset. We'll confirm that funding is available or we'll look where we can get funding for that project. Consult with stakeholders throughout the city, TPW, local operations, traffic, and make sure that we're getting as comprehensive of a project as we can. And then we'll queue that project up for design with our capital projects teams. And I just wanted to end the presentation back to recognize the water department's greatest assets, which are the engineers, operators, technicians, and administrative staff that make this program work. So with that, any questions? Thank you very much, Mr. Roberts. I'll open it up now for board member questions or comments. Board member Wright. Thank you for the presentation. Two questions. What is the current makeup of the asset management staff by function? And secondly, flush score. I don't recall having that in the old days and maybe you could talk about that a little bit. Is that something the operators do when they go out and flush the lines? Yeah, that's a maintenance activity on sewer lines. Yeah, so they go out and if there's more, essentially it's an indicator of additional maintenance that may not be necessary. So that's something that's taken into account when we're looking at the asset and whether or not to replace it. So do they provide your team with some kind of numeric value like zero to five or something like that? Absolutely. Our team coordinates with local operations and all of that data based on work orders is available to us through our maintenance management system. And so we can pull reports. The information is available to us and we'll coordinate with them on specifics because looking at the data is one thing but coordinating with them on the exact, getting the idea of the exact trouble that they're having is another. So yeah, we definitely take that into account. And then as far as the makeup of our asset management division, we have four tech staff right now. We're looking to hire one more and our engineering and mapping side is fully employed right now. So we're almost back up to full staff. So could you just say what the positions are and what they do? So I'm a supervising engineer. I've got two assistant engineers that assist me with project planning and condition assessment work. I have a mapping QCA and a GIS analyst that perform the mapping work for the water department. And I have two civil engineering technicians. One assist with GIS and project planning and the other manages the, our document database for all the historical documentation and also helps with creating and inputting new assets or modifying assets in our maintenance management system. I supervise a department information technology specialist and she is the head of our water IT group. There's a QCA in that group and there's a department programmer analyst and also I can't think of it right now. I apologize, but there's two more staff that essentially manage the city works and the city works program right now. Technical application specialist. Thank you, it has is, right? Technical application specialists. There's two of those as well. Thank you. Yep. Other board member questions or comments? Board member Grable. Yeah, thank you for the presentation. This is always really fascinating. I don't know if you've addressed this in terms of what the percentage of our system that might be vulnerable to this would be, but it just occurred to me I had a meeting with the department of emergency management recently and one of their main focuses essentially is earthquake resilience preparedness, you know, what are our strengths and weaknesses and that was county wide. But on our system specifically when it comes to things like asbestos cement reinforced concrete and most especially like your BCP and other, you know, the real old stuff, how much of our system do you think is extremely vulnerable to earthquake damage? What'd you say? I don't have an exact number for you, but I do know that we are focusing on some projects in this upcoming CIP program to replace some water pipelines along the Rogers Creek fault specifically. And, you know, those are some older pipelines down Sonoma Avenue and there's some up Sinead Road. And so we're looking to get those going and make sure that we can replace those with some more resilient pipe. There has been almost decades long, I think, you know, program to seismically upgrade our water reservoirs and we've been doing a good job with that. I think there's a few more that need to be upgraded. And so now our focus will be turned to our distribution system and hardening those against earthquakes. And maybe I'm making an incorrect assumption, but I'm assuming that PVC is more resilient in terms of rate of failure and certain magnitude of earthquake versus some of the other older and more rigid pipes. Is that correct or not? No, that's correct. Okay. And that would be the first material we'd look to. Potentially Dr. Lyon in some cases based on the application, but yeah, you're correct. I was just, when I was in that meeting, I was like, oh man, there's so many things that, you know, not necessarily like catastrophic, like, you know, 9.0 earthquake, but even in the like six to eight, which is more, I think what they're expecting at some point, right? It's just how many infrastructure assets we have in Northern California, but especially in Santa Rosa that have some major vulnerability to that and just the amount of frustration that would cause and when people can't use sewer and water delivery, it's like, oh my gosh, like the scale of that is like its own disaster, right? But yeah, thank you so much. You're welcome. Other board member questions or comments? All right, we will open it up for public comment then on item 4.1. You wish to make a comment, please move to the podium. Seeing no one rise, that'll take care of our study session. Thank you again, Mr. Roberts. Thank you, Chair Galvin. Item 5 on the agenda is the approval of the minutes for January 18, 2024. So we'll take public comments on the approval of the minutes. If you wish to make a comment, please move to the podium. Seeing no one rise, the minutes will be approved and entered. We have no staff briefings. We'll move now to our consent calendar. We have three items on the consent calendar. I'll move adoption of the consent items. Second. We have a motion by Vice Chair Arnone, seconded by board member Grable to approve the consent items. Any comments from the board? All right, we'll open it up for public comment on the consent items. If you wish to make a comment on items 7.1, 7.2, or 7.3, please move to the podium. Seeing no one rise, may we have a roll call vote, please? Board member Wright. Hi. Board member Sierra. Thank you. Hi. Board member Grable. Hi. Board member Bartholau. Hi. Vice Chair Arnone. Hi. Chair Galvan. Hi. The consent calendar passes unanimously with board member Baden-Fort absent. Very good. We'll now move to item 8.1, which is our report item. Director Burke. Thank you, Chair Galvan and members of the board. Our report item for today is the Progressive Design-Build Contract Lonno Trunk Rehabilitation Phase 1, contract number C02403, and Rachela Mayeda, our associate civil engineer with the Capital Projects team, will be making the presentation. Chair, would it be okay we're having some technical difficulties if we just take a brief recess while they set this up? Be fine, we'll be in recess. Thank you. All right, we're back in session. Director Burke, did you have any further intros or comments, or should we just let Rachela go forward? I think Rachela is ready, so Rachela, take it away please. Thank you. Good afternoon, Chair Galvan and members of the board. As Director Burke mentioned, my name is Rachela Mayeda, and I'm an associate civil engineer with the Transportation and Public Works Department. Today I am here to seek approval of a Progressive Design Build Contract for the Lonno Trunk Rehabilitation Phase 1 Progressive Design Build Contract, contract number C02403. During this presentation, I'll start off with a little bit of project background and scoping. I'll provide a brief refresher on what Design Build is. I'll talk about a form of Design Build called Progressive Design Build. I'll discuss how the process of procuring a Design Build team went. I'll touch on the project cost and schedule and then conclude with a recommendation. Looking at the map on your right towards the bottom of the screen, you can see the Laguna Treatment Plant and towards the top is Todd Road. Lonno Road runs in between the two and where that green line is indicates where we have approximately 8,100 linear feet of 66 inch sewer pipe that'll be rehabbed using trenchless technology. Along that stretch of pipe, we will also rehabilitate 12 manholes and in order to do all of this work, we anticipate needing to set up a bypass pumping system that can convey approximately 20 million gallons per day. That pumping system will need to cross Todd and Lonno Roads, go through private property and then we'll also require 24-7 monitoring. And then primarily because of that bypass pumping system, we do anticipate needing permits through the California Department of Fish and Wildlife, the Regional Water Quality Control Board, and then also the County of Sonoma. Because we are going through some sensitive areas that have protected plant and animal species, we do expect that one of the California Department of Fish and Wildlife permits will take an extensive amount of time and effort. For compliance with the California Environmental Quality Act, we anticipate that we will need an initial study mitigated negative declaration. To describe what design build is, I first wanna provide a refresher on how we typically deliver projects through design bid build. So first, we, the owner, go into contract with a designer who can hire consultants to help develop and design the project. We then get contract ready documents from that designer and then put the project out to bid. After that, we go into contract with a builder or a contractor for them to construct the project. In design build, however, we go into a contract with a design build team that's made up of the design consultants, the subcontractors, and the builders. So from the start of the project, we have a single point of contact and then all of those entities work together as a single unit. And for the Lana Trunk project, we originally selected design build because we've seen Linium projects where a designer will design the entire bypass pumping system setup only to have the contractor completely change everything during construction. And because the bypass pumping system can be up to about half of the total construction cost, any savings or costs incurred during construction can be pretty significant. So ultimately, we thought it was in the city's best interest to have our designer, our contractor, and the environmental staff all on the same team from the start of the project. Progressive design build is a form of design build and a Senate bill was passed in September of 2022 that authorized local agencies to use progressive design build as a delivery method for certain water and wastewater projects. And then the team structure that you saw in the previous slide still applies to progressive design build. So now I wanna use design build as a basis for describing what progressive design build is. In design build, we start off with scoping the project and then develop the 30% design. After that, we go into the procurement process of selecting a design build team. And at this point, interested design builders would give us a proposal that includes the cost of both the design services as well as construction. And at that time, we would then go into contract with a design builder for both of those phases. They would then finalize and design the project and construct it. This delivery method is great for projects where the design is not expected to change as things progress. So for a little bit more simple projects. And then with progressive design build, again, we start with scoping out the project and then directly after that, we move right into procuring a design builder. So as part of their proposal, they would give us the cost of only the design phase or engineering phase of the project. We would then go into contract with the selected design build team just for the engineering services phase of the project. They would then bring the design to around the 75 to 90% design. And at that point, they would then estimate a construction cost and give it to us. If the city and the design builder cannot agree on a construction cost at that time, the design build team would be required to finish the design and then we could take those plans and put them out to bid the way we typically would with design bid build. If city staff do approve the construction cost, then we would come before the board again and seek approval for a contract change order to include the cost of construction. At that time, if the board approves the change order, then the contract would be amended to include the cost of construction. Progressive design build is good for when the scope of the project may change as the project progresses. And so the main difference between these two delivery methods is when the construction cost is determined and when that cost gets included into the contract. For the Lana trunk project, we opted to change the delivery method to progressive design build after that Senate bill was passed because we realized that there were just too many uncertainties associated with the bypass pumping system. So input from the California department of Fish and Wildlife or findings from CEQA or cooperation from private property owners could all significantly impact the bypass pumping system, which would significantly impact the cost of construction. To select a design build team, the process began with issuing a request for qualifications interested design builders then submitted their statements of qualifications. And then we've pre qualified or shortlisted the top ranked teams. The request for proposals was then only issued to the shortlisted teams. And then those teams provided proposals, which were reviewed by the selection committee. And then I'm here today discussing the contract award. We received a total of six statements of qualifications and we felt that all of those design build teams were qualified to do the project. So we shortlisted all six of them of those six for submitted proposals, which were then ranked on their responsiveness to the requirements of the request for a proposal, their proposed design and permitting approach, their capacity and approach to delivering the project, and then also the price and schedule. And then I just wanna point out here that this is a potential advantage of design build or progressive design build. The city has the opportunity to select our contractor not only based on their fee, but also based on their qualifications and their experience. Each selection committee member reviewed the proposals and we then all met as a group and we unanimously decided to move forward with SAK Construction and Corollo engineers. SAK and Corollo provided the following cost estimate for the engineering phase of the project, totally and approximately $1.3 million. It's anticipated that the total project will be about $15 million and that would include the cost of construction as well as soft costs. And soft costs would be the cost in the above table as well as any in-house fees, permitting and administrative fees. The majority of funding for this project has already been allocated and the remaining amount is programmed in our year one CIP budget for fiscal year 2024, 2025, which the board and council will be seeing later this year. Looking now at the project schedule and starting on the top row, project management will be ongoing throughout the duration of the project. Pre-construction services are those services that would be provided by the contractor and that would include doing constructability and scheduling reviews and then also providing that construction cost estimate. That would begin this summer and go into next spring. The design will begin shortly after contract award and go into early spring of 2025. The permitting and CEQA would begin shortly after preliminary design is complete and then construction would begin in March of 2025 with the beginning of that mostly consisting of procuring materials and doing submittals and then the majority of any ground-disturbing work not beginning until mid-June. It is recommended by the Board of Public Utilities Contract Subcommittee, the Transportation and Public Works Department and Santa Rosa Water that the Board of Public Utilities by motion approve a progressive design bill contract C02403 in an amount not to exceed $1,302,657.45 with SAK Construction LLC of Rockland, California plus an additional 10% contingency amount of $130,265.75 for a total not to exceed amount of $1,432,923.20. Thank you for your time and I'd be happy to answer any questions you may have. Thank you for your presentation. I'll open it up now for any board member questions or comments, Vice Chair Arnone. Thank you. Thanks for that presentation. I have a question about design bill, progressive design bill, because I recall that it was necessary to do a charter amendment in order to have design billed at all in the city Santa Rosa. And I'm wondering if this is, if the charter amendment was broad enough to cover this modified form of design bill or whether it was encompassed in the change we made to the charter? Yeah, after evaluating the municipal code on that, we felt that it was covered, that the definition of design bill could also cover progressive design bill, which is a type of design bill. Okay, thank you. We're member Wright. A couple of questions. When we got, so we did a traditional RFP process to get interested proposers in for this. Did we request a approximate price in the proposals? Yeah, so in the proposal, they gave us an approximate price just for the engineering and design services, but not for the cost of construction. And do we know the, do we have an estimate? We must have an estimate for the cost of construction. Yeah. What is that? I believe was, so in total it was $15 million for the total project cost. So I want to say that the construction estimate was around $9 million. Okay, so this is like 10% or something like that. And then just, I don't know if you're the right person to ask this, but do we get, by having this design build process where we have another person doing the permitting and doing virtually everything, only we're just the owner in this case, do we get one more layer of legal protection because we have somebody else squeezed between in there? I mean, we always have something with the consultant, but is that more so in this case? I believe within the contract that would be established, but similar to our other projects, we are still reviewing everything. All of the permit applications and the design and such still get circulated to city staff to review. But this, the person that's doing the design build is also gonna build it or gonna be responsible for building it. And they're designing the pump around system, which is our biggest risk, I guess, right now from my ability standpoint. So anyway, it's like we're... I believe our city attorney will take over this one. Hi, I'm Jessica Mullen. I'm an assistant city attorney here with the city. And I've worked with the team on this particular contract. So I think if I understand your question, you're asking if whether this kind of mode of delivery provides us with some extra insulation in terms of the liability because it's all under the design build entity. Is that kind of like asking? Yeah, and I think with all these different delivery methods there's kind of risks and benefits, there's trade-offs. I don't know that I would... In this particular instance, they're working together from the beginning. So I think that that is helpful. Sometimes with a design build project where the teams are one team, they can kind of reinforce each other a little bit rather than... So you don't get as much... I don't think there's a difference in the liability, I guess, protection that you get with the design build. Sometimes the teams work together a little bit better, which is the advantage in what you're hoping for. So that's a long answer, but I don't think it offers us any additional protection. That's fine. I kind of figured that, but I was thinking maybe that was an extra bonus I don't think the relationships are structured in a way that it gives us that extra bonus, unfortunately. And lastly, how is the city representative embedded in this design? I mean, they must have meetings or how do they... Obviously, we just don't give it to them. They bring it back in nine months. How does that process work? Yeah, so that's built into the Scopa Services, which is amended to their contract. So we do have check-ins, quarterly check-ins, with the design build team. And then they also do the normal submittals at, say, 75 to 90% design where we see everything. Okay, thank you very much. We're member Bartholomew. Thank you. Thank you for the presentation. I'm always curious when a contractor is chosen that isn't local. And I'm just wondering if there were local contractors that, because maybe they didn't respond to the RFP, I mean, that's, if they don't respond, they can't get the job, but... Yeah, I believe SAK Construction who's awarded this project does do local projects and has done several of these projects with the city in the past. Other board member questions or comments? Board member Grable? Yeah, I just wanted to thank you for the detail and the thoughtfulness. It was wonderful to learn about this at the Contract Review Subcommittee and just see how much this could benefit, not just the city's bottom line, but it seems like everything about it was really well done and we got a really good number of respondents where in the past, that's been a concern for us. And I think just it speaks volumes to the work that you and your team have done. So thank you. Thank you. As board member Grable alluded to, this matter did come before the Contract Review Subcommittee and was unanimously recommended. If there are no further board questions or comments, I'll entertain a motion. I'll make a motion that the Board of Public Utilities approve a progressive design bill contract C02403 in an amount not to exceed 1.302657.45 with SAK Construction LLC of Rockland, California. Plus an additional 10% contingency amount of $130,265.75 for a total not to exceed amount of $1,432,923.20. Second. Very good. We have a motion by Vice Chair Arnone seconded by Board Member Grable. We'll first open it up for public comments. On item 8.1, if you wish to make a comment, please move to the podium. Seeing no one rise, we'll have a roll call vote, please. Board Member Wright. Aye. Board Member Sierra. Aye. Board Member Grable. Aye. Board Member Bartholomew. Aye. Vice Chair Arnone. Aye. And Chair Galvan. Aye. And that passes unanimously with Board Member Bannon-Fort absent. Very good. That'll take care of item 8. Item 9 is public comments on non-agenda matters. If you wish to make a comment, please move to the podium. Seeing no one rise, that'll take care of that. We have no referrals, we have no written communications. As I alluded to with regards to subcommittee reports, the contract review subcommittee did meet on January 30th and we reviewed and approved in unanimously the project design build contract that we just awarded. So that's the report. Any other board or committee reports? All right, we'll take public comments then on item number 12. If you wish to make a comment, please move to the podium. Seeing no one rise, any Board Member reports? All right, we'll move to the Director's Report. Thank you, Chair Galvan and members of the Board. I have a few items to update the Board on. First, I wanted to provide a little bit of an update on the Potter Valley Project. I wanted to let the Board know that the EEL Russian Project Authority or the ERPA has now been officially formed and held its first meeting. The Board of Directors met on Wednesday, January 31st from three to five at the Sonoma County Board of Supervisors Chambers. And during the meeting, they elected Board of Directors for Sonoma Water, David Rabbit as the Chair and Board of Directors with the Mendocino County Inland Water and Power Commission, Janet Polly as the Vice Chair. Sonoma Water has been assigned as the Interim Secretary and Council for this new entity is going to be split between Sonoma Water and Mendocino County and Inland Water and Power. There were three presentations that were provided to the Board regarding the license surrender and decommissioning, as well as the status of the two design options that are being considered to continue the diversion and an update on some funding. Later, or next month, sorry, mid-March, 11th and March 13th, a technical advisory group to this authority will be meeting to review the potential design options. And ultimately, we're expecting that the Board of Directors for ERPA will make a decision on the design at a meeting likely in March. If you want additional information, there's a dedicated website for this new authority. It's illrussianauthority.org and those that are in the public can always sign up or Board members can sign up to receive updates at that website. Related, you may have seen in the news that PG&E has made a determination that ultimately they are not going to consider the proposal that was put forth by the illrussianproject authority and other entities in their license surrender and decommissioning project. They don't want that process to be under the Federal Energy Regulatory Commission's jurisdiction. And so they will not have that in their final draft surrender application and decommissioning plan. But the entities and ERPA still anticipate working together with PG&E and they're still going to be moving forward on a potential option to keep the diversion going. So I wanted to provide the Board that update on what we know at this point in time on that status. Second, I wanted to let the Board know that we are starting and very busily engaged in our budget planning for fiscal year 24-25. And we will be having our inaugural budget review subcommittee meeting next week on February 20th and we'll be covering background information as well as reviewing some of the assumptions we'll be using for developing next year's budget. And I wanna thank in particular our budget subcommittee and appreciate the time and effort that they're gonna be putting forward. We're gonna be asking a lot of you in the next month to month and a half. And we look forward to working closely with the subcommittee as we're going through our budget process. And then last, I have, I think a slide I've been told to share maybe, hey, there you go. We wanted to let the Board know that for the second year in a row, we're gonna be doing an I heart tap water campaign for the month of February. And so this fun campaign educates the public about the value and safety of our tap water that's delivered to their homes and businesses. And also as an opportunity for us to showcase the talented employees that we have that make up the exceptional Santa Rosa water team and the work that they do to specifically help deliver tap water to our community. So we will be sharing this on our social media campaign and our social media channels and spotlighting individual employees encouraging our customers to take it from the tap. So hopefully you'll see some of that on your social campaigns. Encourage you to share them if you like and looking forward to highlighting lots of different exceptional staff that work for our department. And that is my update and I'm happy to answer any questions that the Board may have. Thank you, Director Burke. Any questions for the director? All right, we will take public comment then on item 14. If you wish to make a comment, please move to the podium. See no one rise. That'll take care of the director's report. That concludes our agenda for today. Again, welcome to our newest board member. Look forward to working with you and we're now adjourned.