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HomeMy WebLinkAbout03. Receive update on Letters of Interest and As-Needed Public-Private Partnership (P3) Advisory Services and review draft Position Paper authorizing the General Manager to execute a professional consulting services agreement 30 All 1p INNOVATIVE 10ENERGY FACILITY PROJECT Ake DP 7358 �A UPDATE ON LETTERS OF INTEREST AND AS-NEEDED PUBLIC-PRIVATE PARTNERSHIP (P3) ADVISORY SERVICES N.- RESP COMMITTEE MEETING July 17, 2077 j PRESENTATION OVERVIEW � . Background 2. Why look at Bioenergy? 3. Status of Innovative Bioenergy P3 Project a) Request for Interest Issued b) Letters of Interest Received 4. As-Needed P3 Advisory Services RFP a) Example Services Needed b) Selection Process 5. Recommended Board Action �c�l r r r� ,P i CURRENT SOLIDS HANDLING & ENERGY PRODUCTION PRACTICES Air Pollution Control Equipment Primary Sludge {from Primary Clarifiers} Heat for Steam DAFs Thickening Steam for Blowers WAS Blend Tank Dewatering Centrifuges - ------------- (from -.......(from Secondary •.,• � . _�.•.••- Clarifiers) '_.. -j Multiple Heart Ash Furnaces Thickener Underflow Centrate Heat for Steam Landfill Gas Natural Gas Ce-Gen Electricity Generation Natural Gas -2.7 MW g'A ! '` ATTACHMENT E SANKEY DIAGRAMOF- ENERGY USE AT CENTRAL SAN"SWWT ' 500 K1k40tWd Sludge Blending Cenwft es MHFs Ta nk9�o MN1E31t i-d 880hr'�d8tul�d A sh to �4$0 MM13tu/d � �_ '��Mid Qtu�d Forrilizer or ob 90 LandfillP � kW 150 WN 420 s }T .11~,tf3Y l re 1.( . 'm1F3 f 1-! :tilt TU/d 2 klerrlcly Waste Heat 10Wfs'T U,%j Tato! Boller 200 1 tufa To�� u1 Trearmen 7`v C tP er ►.�. 3 [�a Ib, z and ethers Solids 3701 MM81t:t I 1 8 10 k%N 1X30 kW Auxiliary Tara 1 150 15T '<# 10 11*1BTU:(j Boilers Lar7d ll Gas - 40 -IBtura fb7.0007.000Total 7� Consumption Plalir 480 kcl:fj Steam 240 Co-Generation Total 13 000 tWh Natural Gas 374 MMBtu.d Consumption t 950%%*.Btu 25,00kV 200 US ni d POWER STEAM � LANDFILL NATURAL GAS HOW CENTRAL SAN ' S STEAM DEMAND IS CURRENTLY MET Waste Heat Boilers Co-generation 41'5 43% Auxiliary Boilers 16% CURRENT ENERGY USE PROFILE 21500 CCCSD ENERGY SOURCES PROFILE � 2,000PG&E 2, Solids to 1l N G Incineration MBTU/Day 1500 32% m O 1000 Natural gas tF� 56 a Uj�o L Soo Landfill gas SOLIDS 11% 0 tit S' - y . . l 21)1.5 Greenhouse Gas Inventory Verified GHS Em iso tons: 2 3.142 MT fCOze mm"�PC&E Vt-spon(kw) Opmom TcAal 0.6i IV NG Lfsage C36ef W,lady Usage Tot a$Dai I LF G tj� ---*,--ToC4 t-k-am Flow Whr) Apr 13-15:S(fieduled Cogen Nav 3&Current:Scheduled Coge-t Shu-.down due toe allritenance shutdown case to rnelntenance 3COO Feb 6-12;Unschalute+d PG&E Impoft dve to Nob Influgnt flash's � 35,000 4A 2500 30,000 2CO 4j A 20,E 3 L IL 15,E O-W- 1 COO 10"000 '� — - ,„ � '�lir. '� �-r�1..4 • .r ,�.�.r,� �j', �„� �� f� lie! _q��jy '�� � t, � �}� �+����_ •� � a Ali. } },�� y 'e r + x � n, #•. 114.4 _ f•..1. ddpr - w_r_ J` r+ +'F 5^ 1.tw • ��,._'STI __ 44 At SV r i r. 1 r s _ ► „� I Lq m ► 0 A j eA 1 A'16 le Tn', y 4 oogl Earth DEVELOPED A FLEXIBLE , PHASED . APPROACH TO SaLID S HANDLING Phase I Phase 2 Phase 3 (0-5 yrs.) (6-10 yrs,,) (11-20 yrs.) MHFs MHFs MHFs MHFs Design Phase 1 Solids Construct Phase 1 Yes Design Phase 2 Solids Construct Phase Yes FBI Yes Handling Facilities Yes Handling Facilities Solids Handling Improvement Project: 3 Solids Handling Replace Improvement Project Facilities Add 2 Anaerobic Facilities MHF with Improvement Project No Digesters and Evaluate Improvement FBI No a High Strength Waste No Project:2 Innovative Bioenergy (HSW) Program Di esters 0 New Alternative Solids Yes Innovative Bioenergy I and Energy Technology Construct Phase 1 Innovative Project Evaluation Bioenergy Project Yes Bioenergy Abandon Innovative BioEnergy Yes Construct Incineration Construct Phase 2 Phase 3 and convert to No Bioenergy Project Bioenergy TPAD and a HSW Program Cogen Yes No Implement Cogen Cogen No Improvement Project Renew 5-Year Solar Cogen Cogen Le - I Turbine Maintenance Replace Cogen with a 5- Renew 5-Year Solar Agreement Yes Year Mfr. Maintenance Turbine Agreement Yes Maintenance Agreement REVISED P A PROA To SOLIIDS HANDLING Phase 1 Phase 2 Phase 3 (0-5 yrs.) (6-10 yrs.) (11-20 yrs.) MHFs MHFs MHFs MHFs FBI Design Phase 1 Solids YeS. Construct Phase 1 Design e 2 Soli andling Handling Facilities r Solids Handling on ct Ph 3 R e Facilitie ement Improvement Project Facilities Project:Ad o Anaerobic Solids ing M h Improvement Project Facilities vement FBI NO Digesters d Ev ate a High oject: Innovative Stre Waste P ram Digesters Bioenergy New Alternative Abandon Yes Innovative Bioenergy Yes >an ra Solids and Energy Construct Phase 1 Innovative Bioenergy ertTechnology Project Bioenergy Project Construct Phase 2 Bioenergy Yes Innovative BioenergyEvaluation '" Construct Phase 3ndProject OG Bioenergy Program No Cogen Y25 COGEN Implement Cogen Renew 5-Year Solar ge Coge Improvement Project Turbine Maintenance Agreement Replace Cog ith a 5-Year Rene - r Solar Mfr. Maint n greement Turbine tenance reem PRELIMINARY 10=YEAR CIP $873M OF IMPROVEMENTS IDENTIFIED (WITH DIGESTERS STARTING IN FY 24/25) FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 Treatment Plant $18,044,950 $18,707,219 $50,502,244 $48,611,109 $46,181,619 $56,523,212 $511635,748 $23,375,212 $34,949,903 $37,392,325 Aids Improvements Phase 2&3 (Digesters+ FBI) $0 $o $0 $o $© $a $20,190,449 $20,190,449 $20,190,449 Collection System $18,492,120 $17,1800028 $35,752,312 $37,999,695 $39,4391860 $36,758,521 $38,293,113 $410739,196 $41,985,174 $451703,025 Recycled Water $460,000 $540,000 $11209,665 $5,770,993 $5,770,993 $125,000 $1,6461920 9 099 080 125 000 ► $ ► $ ► $125,000 General improvements $4,277,050 $2,911,965 $3,455,778 $1,943,278 $3,297,500 $4,172,500 $1,797,500 $2,797,500 $1,797,500 $2t570,000 C I P Program Contingency $1,500,000 $11500,000 $21000,000 $2,000,000 $2,000,000 $2,000,000 $2,0000000 $2,000,000 $2,000,000 $2,000,000 Total Cl P knot incl. Future Unfunded $42,774,120 $400839,212 $92,919,998 $96,325,074 $96,689,971 $99,579,233 $95,3730281 $99,201,437 $101,+048,026 $107,980,799 (In 2016 Dollars) WHY LOOK AT BIOENERGYO?. • Permitted capacity of M1111111111111iltiple hearth furnaces • Growing regulatory pressures on air emissions • AAQMD , Title V, CARB • High anthropogenic greenhouse gas (GHG) footprint due to Cogen • Inevitable decline in landfill gas supply B10ENER GY PROJECT BENEFITS 1 . Onsite source of renewable energy 2 . Would eliminate reliance on Cogen • Dramatically reduce natural gas purchases • Dramatically reduce regulated GHGs • Would eliminate potential for exceeding current threshold for participation in Cap & Trade Program for GHGs 3 . Diversify solids handling 4. Reduce loading on the furnaces ALIGNMENT WITH STRATEGIC PLAN k wiak.—hN ML STRATEGY 2 — FACILITATE LONG—TERM CAPITAL RENEWAL AND REPLACEMENT 00- STRATEGY 2 — EVALUATE BUSINESS PROCESSES AND OPTIMIZE BUSINESS OPERATIONS 1 Perform business process mapping and re-engineering. 00- STRATEGY 'J — ENCOURAGE THE REVIEW AND TESTING OF PROMISING AND LEADING TECHNOLOGY 1 Expand and improve the use of mobile computing and communication technologies. �r� ISSUES TO BE ADDRESSED • Environmental Review (CEQA) • Jurisdiction • Permitting • Title V (BAAQMD Air Permit) • Land Use • Truck traffic impact • Access and site improvements • Understanding the cost of power production and solids handling at Central San • P3 contract terms and conditions • Duration of initial agreement • Operation and maintenance responsibilities • How to incorporate with Central San's Cogen , steam system , and power production STATUS OF BIOENERGY P3 PROJECT • Request for Interest (RFI) �l Centra!Contra Costa Sanitary District issued on A 20, 2 ------------------ ------- ------------------------ REQUEST FOR INTEREST . Letters of interest received June 16, 2017 Eight Letters of Interest \`! .�:��: 4 Received ............................. ...........-------­­----------------------- ........... ------------------------------------- ----------------- REQUEST FOR INTEREST(RFI) IN A PUBLIC-PRIVATE PARTNERSHIP FOR DEVELOPMENT AND IMPLEMENTATION OF A FULL-SCALE BIDENERGY FACILITY APRIL 20, 2017 RESPONSE DEADLINE MAY 310 7.017 4:00 PM CONTACT MELODY LABELLA MiABELLA@ CEfJTRALSAN.ORG LETTERS OF INTEREST RECEIVED Central an received Letters of Interest, in advance of the 4 pm deadline on June 16, 2017, from the following companies/teams (listed ion alphabetical order): • Aries Clean Energy • CH2M Element Carbon • Denali Water Solutions, LLC and Cambi , Inc. JV • RealEnergy, LLC • Sacyr Environment USA, LLC (Sacyr Group) Synagro WWT, Inc. • Veolia /c� I� SUMMARY OF LETTERS RECEIVED Lead Respondent Financing Lead Respondent Other Partners Proposed Technology Aries Clean 3026 Owen Drive Not Aries Clean Energy • Gasification (downdraft or Energy, LLC Suite 101 disclosed Gasifiers fluidized bed) Nashville, • Import of biomass feedstock Tennessee 37013 Design Consultant: • Organic Ranking Cycle power Carollo Engineers generators (ORC) for energy production 150 Spear Street Not Self-Performing Design Anaerobic Digestion and Drying Suite 750 Disclosed Build Operate followed by Pyrolysis San Francisco, CA • Gasification 94105 • High Strength Waste • Biogas to run cogeneration for power generation Element Carbon a 5225 Renner Private Coaltec Energy • Gasification ' division of Earth, Road, Shawnee, Equity • Import of high strength biomass Energy & KS 66217 Partners Coaltec will provide feedstock waste (food, wood Environment, LLC TBD turn-key design and waste, yard waste and others) (E 3) installation services for ORC, traditional combined heat the gasifier systems. and power (CHP) steam turbine and generator systems, process steam and hot water generation. -- Bank Potential SUMMARY oF LETTERs R CEIVED i Lead Respondent Financing Lead Respondent Ade drss Partner Other Partners Proposed Technology I - Sacyr 3330 N Washington Sacyr Group Self-Performing Design 9 Co-anaerobic digestion Environment Blvd, Suite 400 Build Operate by Valoriza 9 Addition of high strength waste USA, LLC (Sacyr Arlington, VA 22201 Serviclos (FOG) Group) Medloambientales 9 CHIP for power generation using biogas 9 Aerobic Fermentation for compost production Synagro WWT, 435 Williams Court Synagro BIOFerMT11 anaerobic • Off-site Composting (initialhasep ) Inc. Suite 100 digestion technology 0 BIOFerm Energy Systems - Baltimore, IVID 21220 proprietary wet fermentation Applied Technology, Inc., anaerobic digestion technology (ATI) for Engineering 9 Addition of high strength waste (FOG) GSE Construction • CHP for power generation using biogas VEOLIA WATER 3731 Wilshire Private Equity Anaergia's omnivore"" 0 Phased approached to co-digest WEST Boulevard, Suite 600, Partners TBD anaerobic digestion all solids OPERATING Los Angeles, CA 90010 technology design and 9 Imported high-strength liquid SERVICES, INC, equipment supply waste (e.g., FOG) as well as tons EPC Contractor: of food waste diverted away from (Veolia) Lyles Construction Group landfill Biogas CHP for power generation Design Consultant: Kennedy/Jenks Consultants jeEL L AS-NEEDED P3 ADVISORY -AC IT14-t �` Central Contra Costa Sanitary Distract SERVICES RFP REQUEST FOR PROPOSALS(RFP) • Central San is seeking As-needed P3 AS-NEEDED Advisory Services in support of the PUBLIC-PRIVATE PARTNERSHIP (P3) BioenergyP3 Project transaction. ADVISORY SERVICES • Technical JUNE 6, 2017 • Financial • Legal Submittal Deadline 4:00 pni on June 30,2017 Contact n'iL bella(rvcen[ralunorg EXAM L TECHNICAL ADVI ORY SERVICES • Conducting a strategic advisory review and working in coordination with other advisors on the project to provide expert advice and guidance on project and P3 transaction structuring decisions • Identification and mitigation of risks associated with P3 proposals and contractual arrangements with the goal of establishing a fair allocation of risks among partners • Assisting in the review and development of the Bioenergy P3 Project RFP, including drafting responses to requests for information, attending meetings with potential Concessionaires, and drafting and reviewing the RFP • Assisting with analysis of procurement options regarding construction, operations, and maintenance elements, output and outcomes such as demand/revenue, service level, and performance metrics • Assisting with the project's feasibility analysis, including value for money analysis and lifecycle cost comparisons • Assisting in the initial review and/or development of the basis-of-design and/or bridging/integration documents • Facilitating risk analysis, insurance/risk assessments and gap analysis, developing estimates for routine Operations and Maintenance (O&M), lifecycle, design, construction, and permitting • Providing support at all levels of expertise for the development, negotiation, and execution of the P3 transaction Agreement(s) - EXAMPLE FINANCIAL ADVISORY SERVICES • Providing financial advice and assistance in connection with the Bioenergy P3 Project transaction, including: advice and assistance with respect to defining performance objectives; performing valuation analyses; planning, structuring, and negotiation of final contract documents • Researching, developing and drafting detailed valuations, monetization and financial analyses, business case development, value for money analysis, lifecycle cost comparisons, and other financial activities in support of the development of the Bioenergy P3 Project • Evaluating financial impacts, benefits, and liabilities related to private sector proposal, review and analyze requirements for insurance policies, analyze tipping fees, lifecycle costs, revenue sharing, risk assessment, and all other financial analyses needed to support the development of the Bioenergy P3 Project • Providing expertise to support the development, negotiation, and execution of the Bioenergy P3 Project Agreement EXAMPLE LEGAL ADVISORY SERVICES • Working with Central San staff and District Counsel to structure the P3 RFP documents and advising on the procurement approach to limit legal risk to Central San and maximize value-for-money • Advise on contractual issues including project terms and conditions, leases, risk transfer, revenue sharing, and associated tax implications • Assist in developing contract terms and conditions based on the specific needs of Central San • Coordinate with District Counsel to represent Central San in the development and/or negotiation of the procurement documents and the agreement with the Concessionaire, including, any financial, business, tax and valuation provisions, along with other documents in connection with the transaction • Provide guidance regarding Central San'sapproach in negotiations with proposers and final negotiations as needed. SELECTION PROCESS N +rFY 4 + T • RFP advertised on i • Interviewed top 3 Planetoids ranked teams Reviewed proposals & � Selected Top short-listed to 3 Ranking Team . SIX PROPOSALS R (IN ALPHABETICAL ORDER JAR The ARUP Concourse CDM Smith PFAL Sperry WSP USA,Inc. Group Arup WSP - Technical Advisory, Arcadis CDM Smith PERC Water HDR, Inc. Parsons Inc. Brinckerhoff Ernst and Project Jones Lang Arup The Young Financial SperryCapitalLasalle and Financial Advisory, Concourse Infrastructure Advisory and KPMG Raftelis Inc. Group, LLC Limited Financial Advisors, LLC -AL) Consultants Kutak Rock, Kutak Rock, Hawkins Manatt, Ashurst, LLC Nossaman, LLP LLP Delafield & Phelps, and Ruta & LLP Wood,, LLP Philips, LLP Tucker, LLC THREE TEAMS SHO- RT LISTED FOR INTERVIEWS ON JULY 139 2017 • � CDM Smith Sperry Capital/KPMG WSP USA, Inc. Technical CDM Smith HDR, Inc. WSP - Parsonsgrinckerhoff Ernst and Young Jones Lang Lasalle Financial Infrastructure Sperry Capital and and Raftelis Advisors, LLC KPMG Financial Consultants Hawkins Delafield Ashurst, LLC and Ruta & & Wood, LLP Tucker, LLC Nossaman, LLP RECOMMENDED BOARD ACTION • Staff recommends that the Board authorize the General Manager to execute a professional consulting services agreement with with a ceiling of $400, 000 for As-Needed P3 Advisory Services for the Innovative Bioenergy Facility Project, District Project 7358 . i r.Y - h- Central San BOARD OF DIRECTORS 0 POSITION PAPER Board Meeting Date: August 3, 2017 Subject: Authorize the General Manager to execute an agreement with with a cost ceiling of $400,000 for As-Needed Public-Private Partnership Advisory Services under District Project 7358 Submitted By: Initiating Dept./Div.: Melody LaBella Engineering & Technical Services Program Manager— Resources Recovery Planning & Development Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Gemmell— Planning & Development Services Division Manager JM. Petit— Director of Engineering & Technical Services Roger S. Bailey General Manager ISSUE: Board of Directors' authorization is required for the General Manager to execute a professional services agreement in an amount greater than $100,000. BACKGROUND: Central San recently completed a Comprehensive Wastewater Master Plan that recommends a 1 0-year path forward for the treatment plant that includes a number of major solids handling and energy projects. Central San's Board of Directors is interested in exploring innovative project delivery methods that will bring an obvious and distinct business-advantage to ratepayers. To that end, on April 20, 20173 Central San issued a Request for Interest (RFI) in the formation of apublic-private partnership (P3) for the development and implementation of a Bioenergy Facility (Bioenergy P3 Project) that would be designed, built, financed, owned, operated, and maintained by the private partner (concessionaire) with an option for Central San to purchase and operate the facility in the future (e.g. after 10 years or longer of successful operation, or such mutually agreed upon time for the concessionaire and Central San to achieve their business objectives, including return on investment and proof of concept). Ultimately, Central San will be seeking to execute a multiyear P3 service contract for: Processing and disposal of up to 10 dry tons per day of a blend of undigested primary and thickened waste-activated sludge originating from Central San's Wastewater Treatment Plant (wwTP). A reliable supply of onsite renewable power for Central San's WWTP to offset up to 2.8 megawatts (MW) of power demand, which typically ranges from 2.3 MW to 3.2 MW daily. After reviewing and scoring letters of interest received in response to Central San's Bioenergy P3 Project RFI that were submitted on June 16, 2017, and interviewing up to the top five teams, Central San intends to qualify top potential concessionaires for invitation to a future Bioenergy P3 Project Request for Proposal (RFP) for a multiyear service contract for the above-mentioned renewable energy and solids processing services. Page 1 of 3 POSITION PAPER Board Meeting Date: August 3, 2017 subject' AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH WITH A COST CEILING OF $400,000 FOR AS-NEEDED PUBLIC-PRIVATE PARTNERSHIP ADVISORY SERVICES UNDER DISTRICT PROJECT 7358 As Central San has not procured projects using a P3 model in the past, expert assistance is needed to effectively support the Bioenergy P3 Project transaction. On June 6, 2017, staff issued an RFP to procure as-needed P3 advisory services to assist Central San in the development and implementation of a full-scale Bioenergy Facility, under a P3 model. Central San is seeking this expertise to assist with a P3 arrangement which may result in a multi-year service contract for processing and disposal of undigested wastewater solids and the delivery of onsite renewable energy at Central San's treatment plant. Central San is seeking an advisory team that has experience in a wide variety of P3 transactions, has at least a California and national perspective, and can demonstrate broad experience with various project analyses and financing methods across a wide range of infrastructure projects in the wastewater, biosolids, and energy sectors. Central San is seeking as-needed technical, financial, and legal P3 advisory services in support of the Bioenergy P3 Project. Major tasks may include: defining objectives; assisting in the development of the request for proposals for the Bioenergy P3 arrangement; assisting in the evaluation of proposals; performing valuation analyses, including life cycle analyses of various options; identification and mitigation of risks; planning, developing, negotiating, and structuring the P3 arrangement(s). The RFP was advertised on PlanetBids from June 6 to June 30, 2017, and six proposals were received from the following teams: Proposing Teams The Sperry Lead ARUP Concourse CDM Smith PFAL Capitall/KPIVIG WSP USA, Inc. Group Arup PERC WSP Parsons Technical Advisory, Arcadis CDM Smith Water HDR, Inc. Brinckerhoff Inc. Ernst and Project Jones Capital Lasalle and Arup The Young Financial Sperry Ca Financial Advisory, Concourse Infrastructure Advisory I Inc. Group, LLC Advisors, Limited and KPMG Raftelis Financial LLC (PFAL) Consultants Kutak Hawkins Manatt, Ashurst, LLC Legal Rock, Kutak Delafield & Phelps, and Ruta & Nossaman, LLP LLP RockWood, LLP Philips, Tucker, LLC LLP An internal evaluation panel was established, which included Central San's three Directors, in addition to the Planning & Development Division Manager, and the Page 2 of 3 POSITION PAPER Board Meeting Date: August 3, 2017 subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH - WITH A COST CEILING OF $400,000 FOR AS-NEEDED PUBLIC-PRIVATE PARTNERSHIP ADVISORY SERVICES UNDER DISTRICT PROJECT 7358 Resource Recovery Program Manager. The panel evaluated the proposals with valuable input from subject matter experts from Engineering and Rates and Fees work groups, and criteria stated in the RFP, including team qualifications on technical, financial and legal expertise to prepare an RFP and negotiate a long-term P3 contract for the Bioenergy P3 Project. The panel evaluated the proposals and developed a short-list comprised of the following three consultants (in alphabetical order): 1) CDM Smith; 2) Sperry Capital/KPMG; and 3) WSP USA, Inc., which were interviewed on July 13, 2017, to present their team approach and qualifications. The evaluation panel selected to provide As-Needed P3 Advisory Services. provided the overall, most qualified team, which is comprised of experts familiar with the wastewater industry and experienced in P3 energy and solids handling projects. The Innovative Bioenergy Facility project, District Project 7358, has a critical ranking in the Capital Improvement Budget and supports Board Policy BP-27 (Energy Policy) and the Strategic Plan for FY 2016 through 2018 under Goal 5 (maintain a reliable infrastructure) and Strategy 2 (facilitate long-term capital renewal and replacement); also Goal 6 (embrace technology, innovation, and environmental sustainability) and Strategy 2 (evaluate business processes and optimize business operations). FINANCIAL IMPACTS: Central San has established a budget not to exceed $400,000 for these as-needed services. This agreement will be funded under the Innovative Bioenergy Facility Project, District Project 7358, and is anticipated to span from Fiscal Year 2017-18 through 2018-19. ALTERNATIVES/CONSIDERATIONS: (1) Reject all proposals. (2) Reduce the scope of work and renegotiate the agreement, which could delay implementation of the Bioenergy P3 Project. (3) Have staff prepare the Bioenergy P3 Project RFP and negotiate the long-term P3 contract without any technical, financial, or legal consulting assistance. All three alternatives are not recommended by staff. COMMITTEE RECOMMENDATION: The Real Estate, Environmental, and Planning Committee reviewed this project at its meeting on July 17, 2017, and recommended approval of this agreement. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute a professional consulting services agreement with with a cost ceiling of $400,000 for As-Needed Public-Private Partnership Advisory Services, District Project 7358. Page 3 of 3