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.