Bolinas Community Public Utility District
A Special  Meeting  Of  The Board  Of  Directors
June 9, 2008     270 Elm Road, Bolinas

1.  Call to Order

    10:10 a.m.

2.  Roll

    Directors Amoroso, Kimball, McClellan, Siedman and Smith present; director Siedman presiding.

    Director Amoroso requested that the order of agenda items be changed so that the Board’s consideration of Resolution 563 takes place prior to its consideration of the solar energy project because consideration of the resolution likely will not require a significant amount of time.  There was no objection.

3.    Resolution No. 563:  Approving the Request to the Metropolitan Transportation Commission by the Bolinas Community Public Utility District for an Allocation of Transportation Development Act Article 3 Pedestrian and Bicycle Project Funding for Fiscal Year 2007/08.

    Director Smith explained that the resolution is a necessary condition of approval for the allocation of $19,000 in funds to the district to supplement the $40,000 previously granted to the district from the Bay Area Air Quality Management District for the installation of the pedestrian/cyclist path on the BCPUD’s sewer pond property.

J. McClellan/B. Kimball    all in favor    to approve Resolution 563.

4.  Solar Energy Project:  Status of coastal permit application and pending California Solar  Initiative rebate deadline; Timing of Clean Renewable Energy Bond Sale and Possible Investment of Proceeds; Amendments to Installation Contract

    Director Smith explained that the district is in an unenviable position with regard to the status of the solar energy projects at its water and wastewater treatment sites.  Specifically, the County of Marin has not yet issued the necessary coastal development permits to authorize the projects (the process has been encumbered by lengthy environmental review), yet the deadline for completion of the project under the California Solar Initiative (“CSI”) program is November 18, 2008 – this confluence of events places the solar contractor in a difficult position with regard to its ability to complete the installations in the remaining time available.  If the solar arrays are not installed prior to the CSI deadline, then the BCPUD will: (1) lose its rebate reservation and (2) lose 14% of the monies it would have realized by selling electricity from the solar arrays to PG&E;  in addition, the BCPUD would still be required to make the initial Clean Renewable Energy Bond (“CREB”) payment in December.   Director Smith presented an excel spreadsheet analysis of the financial implications to the district of such a delay:  the district will lose approximately $48,000 if the CSI rebate deadline is missed.  He noted that the solar array projects are still financially viable (and a good end-result on a net-present value basis for the district) even if the CSI deadline is missed; however, all steps possible to ensure the district will not lose the $48,000 should be taken.  He requested authority from the Board to negotiate with SPG Solar to amend the existing installation agreement to alter the liquidated damages provision to ensure that the district will be “made whole” if SPG Solar fails to complete the installations prior to the CSI deadline

    In response to questions from the Board, director Smith said that representatives from SPG Solar have indicated that they are willing to agree to a revised liquidated damages provision in the installation agreement because they believe the company can meet the CSI deadline.  Although it is possible to receive an extension of the CSI deadline, such an extension would not be very helpful because the maximum extension period is six months.  Director Smith made clear that the primary issue is the fact that the County has indicated that the district’s field construction window will be limited to July 15th – October 15th at the water treatment plant site and from August 15th – October 15th at the wastewater treatment site.  Hence, if the construction window is too tight, SPG Solar will not be able to complete the installation until those same periods in 2009, which is past the maximum deadline extension.  However, SPG Solar is confident that it can complete the necessary construction work in the field within the applicable dates.  After further discussion, director Siedman requested a motion from the Board. 
J. McClellan/B. Kimball    all in favor     to approve delegating the authority to director Smith to negotiate with SPG Solar over the parameters of a revised liquidated damages provision in the installation agreement, subject to ratification of the ultimate terms by the Board at the June 18, 2008 regular meeting. 
  5.    Community Expression

    Director Amoroso said he spoke recently with members of the Bolinas Lagoon Technical Advisory Committee about the recently released draft of the “locally preferred plan” and advised that the plan should be put before the local voters for approval to the extent it is held out as a “locally preferred” plan.   He was told that the term “locally preferred plan” is a term of art used by the Army Corps of Engineers and not intended to indicate actual local preferences.  Director Amoroso said he also is investigating whether the Committee committed any Brown Act violations in the course of its preparation of this plan.

  6.  Adjournment

    11:04 a.m.