Board of Public Utilities Meeting

3242 ACTION MINUTES BOARD OF PUBLIC UTILITIES COMMISSIONERS CITY OF TULARE January 16, 2020 A regular meeting of the Board of Public Utilities of the City of Tulare was held on Thursday, January 16, 2020 at 4:00 p.m. in the Tulare Public Library & Council Chamber, 491 North “M” Street. BPU PRESENT: Howard Stroman, Ray Fonseca, Renee Soto, Thomas Griesbach BPU ABSENT: Chris Harrell STUDENTS ABSENT: Abigail Lopez-Gonzalez, Gregory Garcia STAFF PRESENT: Rob Hunt, Megan Dodd, Michael Miller, Darlene Thompson, Trisha Whitfield, Nick Bartsch, Andrew Bettencourt, Melissa Hermann I. CALL TO ORDER President Pro Tem Stroman called the regular meeting to order at 4:01 p.m. II. PLEDGE OF ALLEGIANCE AND INVOCATION President Pro Tem Stroman led the Pledge of Allegiance and gave an invocation. III. CITIZEN COMMENTS President Pro Tem Stroman requested those who wish to speak on matters not on the agenda within the jurisdiction of the Board, or to address or request a matter be pulled from the Consent Calendar to do so at this time. He further stated comments related to General Business matters would be heard at the time that matter is addressed on the agenda. Charles Ritchie addressed the Board regarding city wells. IV. COMMUNICATIONS There were no items for the section of the agenda. V. CONSENT CALENDAR It was moved by Board Member Fonseca, seconded by Board Member Soto, and carried 4 to 0 (President Harrell absent) to approve items on the Consent Calendar as presented with the exception of item 3. (1) Approve the minutes of the November 21 and December 19, 2019 regular meetings.  3243 (2) Accept the Financial Status Report. (3) Receive the Public Works performance reports for December 2019. Board Member Griesbach pulled this item for clarification. Public Works Director Trisha Whitfield provided a response thereto. It was moved by Board Member Griesbach, seconded by Board Member Fonseca, and carried 4 to 0 (President Harrell absent) to receive the Public Works performance reports for December 2019. VI. STUDENT REPORTS There were no students in attendance to provide a report. VII. GENERAL BUSINESS (1) Approve and authorize the City Manager to execute an updated lease estoppel between the City and 1875 West St Solar, LLC, referred to as Borrego Solar Systems, subject to minor conforming changes by the City Attorney’s Office. Public Works Director Trisha Whitfield provided a report for the Board’s review and consideration. Questions posed by the Board were responded to by Ms. Whitfield. It was moved by Board Member Soto, seconded by Board Member Griesbach, and carried 4 to 0 (President Harrell absent) to approve the item as presented. (2) Receive an update on the Biogas Fuel Cell. Public Works Director Trisha Whitfield provided a report for the Board’s review and consideration. Ben Toby of Fuel Cell Energy addressed the Board providing additional information. It was moved by Board Member Fonseca, seconded by Board Member Soto, and carried 4 to 0 (President Harrell absent) to receive an update on the Biogas Fuel Cell. VIII. ITEMS OF INTEREST Items of interest were discussed amongst the Board and staff. IX. ADJOURN TO CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION(S): (1) 54956.9(d)(3) Conference with Legal Counsel – Anticipated Litigation Initiation of Litigation – One (1) Item of Anticipated Litigation President Pro Tem Stroman adjourned to Closed Session at 4:44 p.m. for those items as noted. X. RECONVENE FROM CLOSED SESSION President Pro Tem Stroman reconvened from Closed Session at 5:10 p.m. XI. CLOSED SESSION REPORT (if any) President Pro Tem Stroman advised there was reportable action and referred to the Assistant City Attorney who stated, by a vote of 4 to 0 (President Harrell absent), the Board approved a Settlement and Release Agreement between City of Tulare acting through the Board of Public Utilities and Fuel Cell Energy (“FCE”). The settlement agreement relates to  3244 the City’s claim that FCE delayed commissioning of the fuel cell such that, under the Digester Gas Purchase Agreement between the parties, FCE should have to pay for those delays. The essential terms of that agreement are as follows: • FCE will waive the requirement that the City reimburse FCE $123,000 for the costs and installation of a heat recovery transfer system; • FCE will pay the City a total of $303,990 in a total of three payments. The first payment of $101,330 will be paid within seven days of the effective date. The second payment of $101,330 will be paid within 30 days after the effective date. The third and final payment of $101,330 will be paid within 60 days after the effective date; • The City will recommend that the Board of Public Utilities approve a Consent and Legal Opinion so that FCE can obtain financing on the fuel cell; • The City releases FCE from all claims related to the fuel cell up to the effective date, damages for delays, and payment for biogas through December 27, 2019. XII. ADJOURNMENT President Pro Tem Stroman adjourned the regular meeting at 5:11 p.m. President of the Board of Public Utilities Commissioners of the City of Tulare ATTEST: Secretary of the Board of Public Utilities Commissioners 3245 This page intentionally left blank.